Document:

<PAGE>
                                                                   Exhibit 10.18

                                LEASE AGREEMENT

                                    BETWEEN

                               Sobrato Interests
                        a California Limited Partnership

                                      and

                              Broadcom Corporation

                            a California corporation

                               November 20, 2000
<PAGE>
                                  LEASE BETWEEN
                   SOBRATO INTERESTS AND BROADCOM CORPORATION

<TABLE>
<CAPTION>
SECTION..........................................................................PAGE #
<S>                                                                              <C>
Parties...............................................................................1
Premises..............................................................................1
Use...................................................................................1
   Permitted Uses.....................................................................1
   Uses Prohibited....................................................................2
   Advertisements and Signs...........................................................2
   Covenants, Conditions and Restrictions.............................................2
   Parking............................................................................2
Term and Rental.......................................................................2
   Base Monthly Rent..................................................................2
   Late Charges.......................................................................3
   Security Deposit...................................................................4
Construction..........................................................................4
   Landlord's Obligations.............................................................4
   Tenant Improvement Plans...........................................................5
   Tenant Improvement Costs...........................................................5
   Construction.......................................................................6
   Insurance..........................................................................6
   Punch List & Warranty..............................................................6
   Other Work by Tenant...............................................................6
Acceptance of Possession and Covenants to Surrender...................................6
   Delivery and Acceptance............................................................6
   Condition Upon Surrender...........................................................6
   Failure to Surrender...............................................................7
Alterations and Additions.............................................................7
   Tenant's Alterations...............................................................7
   Free From Liens....................................................................8
   Compliance With Governmental Regulations...........................................8
   Back-Up Generator..................................................................8
   Communications and Power Conduits and Equipment....................................9
Maintenance of Premises..............................................................10
   Landlord's Obligations............................................................10
   Tenant's Obligations..............................................................10
   Landlord and Tenant's Obligations Regarding Reimbursable Operating Costs..........11
   Reimbursable Operating Costs......................................................11
   Tenant's Allocable Share..........................................................12
</TABLE>

                                     Page i
<PAGE>

<TABLE>
<S>                                                                               <C>
   Waiver of Liability...............................................................13
   Audit Rights......................................................................13
Hazard Insurance.....................................................................13
   Tenant's Use......................................................................13
   Landlord's Insurance..............................................................14
   Tenant's Insurance................................................................14
   Waiver............................................................................14
Taxes................................................................................14
Utilities............................................................................15
Toxic Waste and Environmental Damage.................................................15
   Tenant's Responsibility...........................................................15
   Tenant's Indemnity Regarding Hazardous Materials..................................16
   Actual Release by Tenant..........................................................16
   Environmental Monitoring..........................................................17
   Landlord's Indemnity Regarding Hazardous Materials................................17
Tenant's Default.....................................................................18
   Remedies..........................................................................18
   Right to Re-enter.................................................................19
   Abandonment.......................................................................19
   No Termination....................................................................19
   Non-Waiver........................................................................19
   Performance by Landlord...........................................................20
   Habitual Default..................................................................20
Landlord's  Liability................................................................20
   Limitation on Landlord's Liability................................................20
   Limitation on Tenant's Recourse...................................................21
   Indemnification of Landlord.......................................................21
Destruction of Premises..............................................................21
   Landlord's Obligation to Restore..................................................21
   Limitations on Landlord's Restoration Obligation..................................21
Condemnation.........................................................................22
Assignment or Sublease...............................................................22
   Consent by Landlord...............................................................22
   Assignment or Subletting Consideration............................................23
   No Release........................................................................23
   Reorganization of Tenant..........................................................24
   Permitted Transfers...............................................................24
   Effect of Default.................................................................24
   Effects of Conveyance.............................................................25
   Successors and Assigns............................................................25
   Customer Equipment................................................................25
Option to Extend the Lease Term......................................................25
   Grant and Exercise of Option......................................................25
   Determination of Fair Market Rental...............................................26
   Resolution of a Disagreement over the Fair Market Rental..........................26
   Personal to Tenant................................................................27
General Provisions...................................................................27
   Attorney's Fees...................................................................27
</TABLE>

                                     Page ii
<PAGE>

<TABLE>
<S>                                                                               <C>
   Authority of Parties..............................................................27
   Brokers...........................................................................27
   Choice of Law.....................................................................27
   Dispute Resolution................................................................27
   Entire Agreement..................................................................29
   Entry by Landlord.................................................................29
   Estoppel Certificates.............................................................29
   Exhibits..........................................................................29
   Interest..........................................................................29
   Modifications Required by Lender..................................................30
   No Presumption Against Drafter....................................................30
   Notices...........................................................................30
   Property Management...............................................................30
   Rent..............................................................................30
   Representations...................................................................30
   Rights and Remedies...............................................................30
   Severability......................................................................31
   Submission of Lease...............................................................31
   Subordination.....................................................................31
   Survival of Indemnities...........................................................31
   Time..............................................................................31
   Transportation Demand Management Programs.........................................31
   Waiver of Right to Jury Trial.....................................................32
General Provisions...................................................................32
   Grant.............................................................................32
   Exclusions........................................................................32
   Nortel Sublease...................................................................33
EXHIBIT A - Premises, Building & Project.............................................35
EXHIBIT B - Draft Letter of Credit...................................................36
EXHIBIT C - Therma Mechanical Report.................................................37
EXHIBIT D - Nortel Sublease Space....................................................38
</TABLE>

                                    Page iii
<PAGE>

1. PARTIES: THIS LEASE, is entered into on this 20th day of November 2000,
("Effective Date") between Sobrato Interests, a California Limited Partnership,
whose address is 10600 North De Anza Boulevard, Suite 200, Cupertino, CA 95014,
and Broadcom Corporation, a California Corporation, whose address is 16215 Alton
Parkway, Irvine, California, 92618, hereinafter called respectively Landlord and
Tenant.

2. PREMISES: Landlord hereby leases to Tenant, and Tenant hires from Landlord
those certain Premises with the appurtenances, situated in the City of Santa
Clara, County of Santa Clara, State of California, commonly known and designated
as 2451-2465 Mission College Boulevard consisting of a three story building of
136,708 rentable square feet ("Building") as outlined in red on Exhibit "A"
attached hereto, and all improvements located therein including but not limited
to parking areas and structures, landscaping, loading docks, sidewalks, service
areas and other facilities. The Building is situated within a project site
shared with three additional buildings owned by Landlord as outlined in green on
Exhibit "A" ("Project"). Tenant shall be entitled to use (on a non-assigned
basis) its Allocable Share (as defined in Lease section 8.E. below) of the
parking stalls within the project, which shall not be less than 460 parking
spaces. Notwithstanding the foregoing, Tenant shall be allowed to designate
approximately 35 parking stalls for Tenant's exclusive use near the lobby of the
Building in the location depicted on Exhibit "A". Tenant acknowledges Landlord's
right to and hereby consents to construction of additional building(s) within
the Project or on adjacent land owned by Landlord. The Building has the address
and contains the square footage specified above; provided, however, that any
statement of square footage set forth in this Lease, or that may have been used
in calculating any of the economic terms hereof is an approximation which
Landlord and Tenant agree is reasonable and no economic terms based thereon
shall be subject to revision whether or not the actual square footage is more or
less.

Tenant's leasehold interest in the Premises, which is the entire Building,
includes, without limitation, the utility raceways and risers and the rooftop of
such Building. Notwithstanding the foregoing, Tenant agrees and acknowledges
that Landlord shall have non-exclusive access to and use of any and all
mechanical, electrical, telephone and similar rooms, janitor closets, elevators,
pipe and other vertical shafts and ducts, flues and stairwells of the Building,
to the extent that such access and use is required (A) to comply with Landlord's
obligations under this Lease, (B) to enforce Landlord's rights under this Lease
and (C) to otherwise protect Landlord's interest in the Building. In connection
with any of the foregoing activities of Landlord, Landlord shall use reasonable
efforts while conducting such activities to minimize any interference with
Tenant's use and occupancy of the Premises.

3.   USE:

     A. PERMITTED USES: Tenant shall use the Premises as permitted under
applicable zoning laws only for the following purposes and shall not change the
use of the Premises without the prior written consent of Landlord: Office,
research and development, marketing, light manufacturing, incidental warehouse,
ancillary storage, electronics labs, and other incidental

                                     Page 1
<PAGE>

uses. Tenant shall use only the number of parking spaces allocated to Tenant
under this Lease. All commercial trucks and delivery vehicles shall (i) be
parked at the rear of the Building, (ii) loaded and unloaded in a manner which
does not interfere with the businesses of other occupants of the Project, and
(iii) permitted to remain within the Project only so long as is reasonably
necessary to complete the loading and unloading. Landlord makes no
representation or warranty that any specific use of the Premises desired by
Tenant is permitted pursuant to any Laws.

     B. USES PROHIBITED: Tenant shall not commit or suffer to be committed on
the Premises any waste, nuisance, or other act or thing which may disturb the
quiet enjoyment of any other tenant in or around the Premises, nor allow any
sale by auction or any other use of the Premises for an unlawful purpose. Tenant
shall not (i) damage or overload the electrical, mechanical or plumbing systems
of the Premises, (ii) attach, hang or suspend anything from the ceiling, walls
or columns of the building (except for decorations and wall hangings typically
found in buildings with similar permitted uses) or set any load on the floor in
excess of the load limits for which such items are designed, or (iii) generate
dust, fumes or waste products which create a fire or health hazard or damage the
Premises or any portion of the Project, including without limitation the soils
or ground water in or around the Project. No materials, supplies, equipment,
finished products or semi-finished products, raw materials or articles of any
nature, or any waste materials, refuse, scrap or debris, shall be stored upon or
permitted to remain on any portion of the Premises outside of the Building
without Landlord's prior approval, which approval may be withheld in its sole
discretion.

     C. ADVERTISEMENTS AND SIGNS: Tenant will not place or permit to be placed,
in, upon or about the Premises any signs not approved by the city and other
governing authority having jurisdiction. Tenant will not place or permit to be
placed upon the Premises any signs, advertisements or notices without the
written consent of Landlord as to type, size, design, lettering, coloring and
location, which consent will not be unreasonably withheld, conditioned or
delayed; provided, however, that Tenant shall have the exclusive right to place
signs on the exterior of the Building, and the non-exclusive right to place
signs on monuments of the Project, subject to Landlord's consent as provided
herein. Any sign placed on the Premises shall be removed by Tenant, at its sole
cost, prior to the Expiration Date or promptly following the earlier termination
of the Lease, and Tenant shall repair, at its sole cost, any damage or injury to
the Premises caused thereby, and if not so removed, then Landlord may have same
so removed at Tenant's expense.

     D. COVENANTS, CONDITIONS AND RESTRICTIONS: This Lease is subject to the
effect of (i) any covenants, conditions, restrictions, easements, mortgages or
deeds of trust, ground leases, rights of way of record and any other matters or
documents of record; and (ii) any zoning laws of the city, county and state
where the Building is situated (collectively referred to herein as
"Restrictions") and Tenant will conform to and will not violate the terms of any
such Restrictions.

     E. PARKING:: No charge or fee (other than rent payable hereunder, and
except as required by law) shall be imposed in exchange for the right of Tenant
and its employees, invitees and contractors to have access to or from, or to
park in, the parking areas of the Project during the Term of this Lease.

4.   TERM AND RENTAL:

     A. BASE MONTHLY RENT: The term ("Lease Term") shall be for ninety six (96)
months, commencing on March 1, 2001 (the "Commencement Date") and ending on
February 28, 2009, ("Expiration Date"). Notwithstanding the parties' agreement
that the Lease Term begins on the Commencement Date, this Lease and all of the
obligations of Landlord and Tenant shall be binding and in full force and effect
from and after the Effective Date. In addition to all other sums payable by
Tenant

                                     Page 2
<PAGE>

under this Lease, Tenant shall pay base monthly rent ("Base Monthly Rent") for
the Premises according to the following schedule:

Months 01-12: $751,894.00 per month $5.50 psf
Months 13-24: $781,969.76 per month $5.72 psf
Months 25-36: $813,412.60 per month $5.95 psf
Months 37-48: $846,222.52 per month $6.19 psf
Months 49-60: $879,032.44 per month $6.43 psf
Months 61-72: $914,576.52 per month $6.69 psf
Months 73-84: $951,487.68 per month $6.96 psf
Months 85-96: $989,765.92 per month $7.24 psf

Base Monthly Rent shall be due in advance on or before the first day of each
calendar month during the Lease Term. All sums payable by Tenant under this
Lease shall be paid to Landlord in lawful money of the United States of America,
without offset or deduction and without prior notice or demand, at the address
specified in Section 1 of this Lease or at such place or places as may be
designated in writing by Landlord during the Lease Term. Base Monthly Rent for
any period less than a calendar month shall be a pro rata portion of the monthly
installment. Concurrently with Tenant's execution of this Lease, Tenant shall
pay to Landlord the sum of Seven Hundred Fifty One Thousand Eight Hundred Ninety
Four and No/100 Dollars ($751,894.00) as prepaid rent for the first month of the
Lease.

Notwithstanding the Commencement Date, Tenant shall have the right, but not the
obligation, upon Tenant's receipt of a temporary certificate of occupancy (or
its legal equivalent), to take early occupancy before the Commencement Date, of
all or any portion of the Premises for the Permitted Use and to enable Tenant
and its contractors to install the Initial Improvements described in Section 5
below, equipment, trade fixtures, furnishings and decorations in the Premises
("Early Occupancy"). Such Early Occupancy shall not change the Term Commencement
Date or Term Expiration Date. Tenant's occupancy of the Premises under this
Section 3(b) shall be upon all the terms, covenants and conditions contained in
the Lease, except that Tenant shall only be obligated to pay Base Monthly Rent
and Tenant's Allocable Share of Reimbursable Operating Costs during any Early
Occupancy based on that portion of the Premises that Tenant is actually
occupying for the conduct of Tenant's business.

     B. LATE CHARGES: Tenant hereby acknowledges that late payment by Tenant to
Landlord of Base Monthly Rent and other sums due hereunder will cause Landlord
to incur costs not contemplated by this Lease, the exact amount of which is
extremely difficult to ascertain. Such costs include but are not limited to:
administrative, processing, accounting, and late charges which may be imposed on
Landlord by the terms of any contract, revolving credit, mortgage, or trust deed
covering the Premises. Accordingly, if any installment of Base Monthly Rent or
other sum due from Tenant shall not be received by Landlord or its designee
within five (5) business days after the date the rent is due, Tenant shall pay
to Landlord a late charge equal to five (5%) percent of such overdue amount,
which late charge shall be due and payable on the same date that the overdue
amount was due. The parties agree that such late charge represents a fair and
reasonable estimate of the costs Landlord will incur by reason of late payment
by Tenant, excluding interest and attorneys fees and costs. Notwithstanding the
foregoing, upon the first failure of Tenant to make timely payment in any
calendar year of the Term, Tenant shall not be liable for such late charge if
Tenant pays such overdue amount to Landlord within three (3) business days after
receipt of written notice that such amount was not received when due. If any
rent or other sum due from Tenant remains delinquent for a period in excess of
thirty (30) days then, in addition to such late charge, Tenant shall pay to
Landlord interest on any rent that is not paid when due at the Agreed Interest
Rate specified in Section 19.J following the date such amount became due until
paid. Acceptance by Landlord of such late charge shall not constitute a waiver
of Tenant's default with respect to such overdue amount nor prevent Landlord
from exercising any of the other rights and remedies granted hereunder. In the
event that a late charge is payable hereunder, whether or not collected, for

                                     Page 3
<PAGE>

three (3) consecutive installments of Base Monthly Rent, then the Base Monthly
Rent shall automatically become due and payable quarterly in advance, rather
than monthly, notwithstanding any provision of this Lease to the contrary.

    C. SECURITY DEPOSIT: Prior to March 1, 2005, Tenant shall deposit with
Landlord the sum of Seven Hundred Fifty One Thousand Eight Hundred Ninety Four
and No/100 Dollars ($751,894.00) ("Security "Deposit"). Landlord shall not be
deemed a trustee of the Security Deposit, may use the Security Deposit in
business, and shall not be required to segregate it from its general accounts.
Tenant shall not be entitled to interest on the Security Deposit. If Tenant
defaults with respect to any provisions of the Lease, including but not limited
to the provisions relating to payment of Base Monthly Rent or other charges,
Landlord may, after the expiration of all applicable notice and cure periods, to
the extent reasonably necessary to remedy Tenant's default, use any or all of
the Security Deposit towards payment of the following: (i) Base Monthly Rent or
other charges in default; (ii) any other amount which Landlord may spend or
become obligated to spend by reason of Tenant's default including, but not
limited to Tenant's failure to restore or clean the Premises following vacation
thereof. If any portion of the Security Deposit is so used or applied, Tenant
shall, within ten (10) business days after written demand from Landlord, deposit
cash with Landlord in an amount sufficient to restore the Security Deposit to
its full original amount, and shall pay to Landlord such other sums as necessary
to reimburse Landlord for any sums paid by Landlord. If Tenant shall default
more than three (3) times in any twelve (12) month period, irrespective of
whether or not such default is cured, then the Security Deposit shall, within
ten (10) days after demand by Landlord, be increased by Tenant to an amount
equal to three (3) times the Base Monthly Rent. Tenant may not assign or
encumber the Security Deposit without the consent of Landlord. Any attempt to do
so shall be void and shall not be binding on Landlord. The Security Deposit
shall be returned to Tenant within thirty (30) days after the Expiration Date
and surrender of the Premises to Landlord, less any amount deducted in
accordance with this Section, together with Landlord's written notice itemizing
the amounts and purposes for such deduction. In the event of termination of
Landlord's interest in this Lease, Landlord may deliver or credit the Security
Deposit to Landlord's successor in interest in the Premises and thereupon be
relieved of further responsibility with respect to the Security Deposit provided
such successor assumes, in writing, Landlord's obligations with respect to such
Security Deposit.

Landlord agrees that in lieu of a cash Security Deposit, Tenant may deposit a
letter of credit ("Letter of Credit") substantially in the form attached hereto
as Exhibit "B". Landlord shall be entitled to draw against the Letter of Credit
at any time provided only that Landlord certifies to the issuer of the Letter of
Credit that Tenant is in default under the Lease. Tenant shall keep the letter
of credit in effect during the entire Lease Term, as the same may be extended,
plus a period of four (4) weeks after expiration of the Lease Term. At least
thirty (30) days prior to expiration of any Letter of Credit, the term thereof
shall be renewed or extended for a period of at least one (1) year. Tenant's
failure to so renew or extend the Letter of Credit shall be a material default
of this Lease by Tenant. In the event Landlord draws against the Letter of
Credit, Tenant shall replenish the existing Letter of Credit or cause a new
Letter of Credit to be issued such that the aggregate amount of letters of
credit available to Landlord at all times during the Lease Term is the amount of
the Security Deposit originally required.

5.   CONSTRUCTION:

     A. LANDLORD'S OBLIGATIONS: Landlord shall ensure that the existing Building
systems are in good operating condition and repair including the plumbing,
sprinklers, electrical (including panels and outlets), and doors (both shipping
and personnel) With regard to the HVAC systems, Landlord agrees perform the work
specified in the inspection report issued by

                                     Page 4
<PAGE>

Therma Mechanical dated July 20, 2000 and attached as Exhibit "C" necessary to
put such systems into good condition and repair.

B. TENANT IMPROVEMENT PLANS: Tenant, at Tenant's sole cost and expense, shall
retain an interior architect ("Architect") to prepare plans and outline
specifications to be attached as Exhibit "C" ("Tenant Improvement Plans and
Specifications") with respect to the construction of initial interior
improvements to the Premises ("Tenant Improvements"). The Tenant Improvement
Plans and Specifications shall be completed for all aspects of the work (either
in one package or in phases as provided below) by June 30, 2001 with all detail
necessary for submittal to the city, within three (3) days thereafter, for
issuance of building permits and for construction, and shall include any
information required by the relevant agencies regarding Tenant's use of
Hazardous Materials if applicable. The Tenant Improvements shall: (i) be
reasonably compatible with (and not damaging to) the structural, mechanical,
electrical, plumbing and other systems of the Building, (ii) not materially
adversely impact (in Landlord's reasonable judgment) the exterior appearance or
operations of the Building, the currently existing interior improvements in the
Building, or the appearance or operations of the public areas of the Building
and (iii) comply with all any law, statute, ordinance, order, rule, regulation
or requirement of any governmental or quasi-governmental authority. All Tenant
Improvements shall be subject to Landlord's reasonable approval, which shall not
be unreasonably withheld or delayed beyond five (5) business days following
receipt of Tenant's Plans and Specifications, provided the above conditions are
met. Landlord's failure to approve, or reasonably disapprove, the Tenant
Improvement Plans and Specifications (or revised Plans and Specifications)
within five (5) business days following Landlord's receipt thereof shall be
deemed Landlord's approval. The Tenant Improvement Plans and Specifications
shall include all detail required by the City of Santa Clara necessary to obtain
a Certificate of Occupancy. Construction of the Tenant Improvements shall be
performed by a general contractor ("General Contractor") selected by Tenant,
subject to Landlord's reasonable approval. Tenant shall not be required to use
union labor as a condition of receiving Landlord's approval hereunder. The
Tenant Improvement Plans and Specifications shall be prepared in sufficient
detail to allow General Contractor to construct the Tenant Improvements. The
Tenant shall contract directly with General Contractor for construction of the
Tenant Improvements and shall cause the General Contractor to construct the
Tenant Improvements in accordance with all Tenant Improvement Plans and
Specifications. Tenant shall have no obligation to remove the Tenant
Improvements at the expiration or earlier termination of the Lease. The Tenant
Improvements (other than Tenant's trade fixtures, equipment and furnishings and
other personal property of Tenant that can be removed without permanent damage
to the Premises) shall not be removed or altered by Tenant without the prior
written consent of Landlord as provided in Section 7. Tenant shall have the
right to depreciate and claim and collect any investment tax credits in the
Tenant Improvements during the Lease Term. Upon expiration of the Lease Term or
any earlier termination of the Lease, the Tenant Improvements (other than
Tenant's trade fixtures, equipment and furnishings and other personal property
of Tenant that can be removed without permanent damage to the Premises) shall
become the property of Landlord and shall remain upon and be surrendered with
the Premises, and title thereto shall automatically vest in Landlord without any
payment therefore.

     C. TENANT IMPROVEMENT COSTS: Tenant shall pay all costs associated with the
Tenant Improvements. The cost of Tenant Improvements shall include the following
to the extent actually incurred by Tenant or General Contractor in connection
with the construction of Tenant Improvements: architectural design fees,
construction costs, all permit fees, and construction taxes or other costs
imposed by governmental authorities related to the Tenant Improvements. Landlord
shall not charge

                                     Page 5
<PAGE>

Tenant any fee of any kind for its involvement in the construction or design of
the Tenant Improvement, other than the out-of-pocket costs paid to professional
consultants for review of the Tenant Improvement Plans and Specifications, and
any revisions thereto. Tenant shall pay directly to the General Contractor all
amounts due pursuant to the construction of Tenant Improvements.

     D. CONSTRUCTION: Tenant shall diligently supervise the construction of
Tenant Improvements until they are substantially complete as hereinafter
defined. The Tenant Improvements shall be deemed substantially complete
("Substantially Complete" or "Substantial Completion") when the Tenant
Improvements have been substantially completed in accordance with the Tenant
Improvement Plans and Specifications, as evidenced by the completion of a final
inspection or the issuance of a certificate of occupancy or its equivalent by
the appropriate governmental authority, and the issuance of a certificate by the
Architect certifying that the Tenant Improvements have been completed in
accordance with the plans. Installation of Tenant's data and phone cabling and
furniture shall not be required in order to deem the Premises Substantially
Complete.

     E. INSURANCE: General Contractor shall procure builder's risk insurance for
the full replacement cost of the Tenant Improvements while the Tenant
Improvements are under construction, up until the date that the casualty
insurance policy described in Section 9 is in full force and effect.

     F. PUNCH LIST & WARRANTY: After the Tenant Improvements are Substantially
Complete, Tenant shall cause the General Contractor to immediately correct any
construction defects or other "punch list" items which require attention. The
General Contractor shall provide a standard contractor's warranty with respect
to the Tenant Improvements for one (1) year from the Commencement Date. Such
warranty shall exclude routine maintenance, damage caused by Tenant's negligence
or misuse, and acts of God.

     G. OTHER WORK BY TENANT: All work not described in the Tenant Improvement
Plans and Specifications, such as furniture, telephone equipment, telephone
wiring and office equipment work, shall be furnished and installed by Tenant at
Tenant' cost. Prior to Substantial Completion, Tenant shall be obligated to
contract with a firm to monitor the fire system.

6.   ACCEPTANCE OF POSSESSION AND COVENANTS TO SURRENDER:

     A. DELIVERY AND ACCEPTANCE: On the Commencement Date, Landlord shall
deliver and Tenant shall accept possession of the Premises and enter into
occupancy of the Premises on the Commencement Date. Tenant acknowledges that it
has had an opportunity to conduct, and has conducted, such inspections of the
Premises as it deems necessary to evaluate its condition. Except as otherwise
specifically provided herein, Tenant agrees to accept possession of the Premises
in its then existing condition, subject to all Restrictions and without
representation or warranty by Landlord.

     B. CONDITION UPON SURRENDER: Tenant further agrees on the Expiration Date
or on the sooner termination of this Lease, to surrender the Premises to
Landlord in good condition and repair, normal wear and tear excepted. In this
regard, "normal wear and tear" shall be construed to mean wear and tear caused
to the Premises by the natural aging process which occurs in spite of prudent
application of the best commercially reasonable standards for maintenance,
repair replacement, and janitorial practices, and does not include items of
neglected or deferred maintenance. In any event, Tenant shall cause the
following to be done prior to the Expiration Date or sooner termination of this
Lease: (i) all interior walls shall be repaired, patched, cleaned, and otherwise
made paint-ready, (ii) all tiled floors shall be cleaned and waxed, (iii) all
carpets shall be cleaned and shampooed, (iv) all broken, marred, stained or
nonconforming acoustical

                                     Page 6
<PAGE>

ceiling tiles shall be replaced except to the extent such staining or
discoloration is attributable to Landlord's failure to maintain the Building to
the extent required by Section 8.A. of this Lease, (v) all cabling placed above
the ceiling by Tenant or Tenant's contractors shall be removed unless such
cabling has been properly suspended in accordance with applicable code and is
not weighing on the ceiling, (vi) all windows shall be washed; (vii) the HVAC
system shall be serviced by a reputable and licensed service firm and left in
"good operating condition and repair" as so certified by such firm, (viii) the
plumbing and electrical systems and lighting shall be placed in good order and
repair (including replacement of any burned out, discolored or broken light
bulbs, ballasts, or lenses. On or before the Expiration Date or sooner
termination of this Lease, Tenant shall remove all its personal property and
trade fixtures from the Premises. All property and fixtures not so removed shall
be deemed as abandoned by Tenant. Tenant shall ascertain from Landlord within
ninety (90) days before the Expiration Date whether Landlord desires to have any
Alterations made by Tenant (as defined in Section 7) removed and the Premises or
any parts thereof restored to a standard open office plan with materials and
finishes consistent with the other open office areas with the Premises, or to
cause Tenant to surrender all Alterations in place to Landlord. If Landlord
shall so desire, Tenant shall, at Tenant's sole cost and expense, remove such
Alterations as Landlord requires and shall repair and restore said Premises or
such parts thereof before the Expiration Date. Such repair and restoration shall
include causing the Premises to be brought into compliance with all applicable
building codes and laws in effect at the time of the removal to the extent such
compliance is necessitated by the repair and restoration work.

     C. FAILURE TO SURRENDER: If the Premises are not surrendered at the
Expiration Date or sooner termination of this Lease in the condition required by
this Section 6, Tenant shall be deemed in a holdover tenancy pursuant to this
Section 6.C and Tenant shall indemnify, defend, and hold Landlord harmless
against loss or liability resulting from delay by Tenant in so surrendering the
Premises including, without limitation, any claims made by any succeeding tenant
founded on such delay and costs incurred by Landlord in returning the Premises
to the required condition, plus interest at the Agreed Interest Rate. Any
holding over after the termination or Expiration Date with Landlord's express
written consent, shall be construed as month-to-month tenancy, terminable on
thirty (30) days written notice from either party, and Tenant shall pay as Base
Monthly Rent to Landlord a rate equal to one hundred twenty five percent (125%)
of the Base Monthly Rent due in the month preceding the termination or
Expiration Date, plus all other amounts payable by Tenant under this Lease. Any
holding over shall otherwise be on the terms and conditions herein specified,
except those provisions relating to the Lease Term and any options to extend or
renew, which provisions shall be of no further force and effect following the
expiration of the applicable exercise period. If Tenant remains in possession of
the Premises after the Expiration Date or sooner termination of this Lease
without Landlord's consent, Tenant's continued possession shall be on the basis
of a tenancy at sufferance and Tenant shall pay as rent during the holdover
period an amount equal to one hundred fifty percent (150%) of the Base Monthly
Rent due in the month preceding the termination or Expiration Date, plus all
other amounts payable by Tenant under this Lease. This provision shall survive
the termination or expiration of the Lease.

7.   ALTERATIONS AND ADDITIONS:

     A. TENANT'S ALTERATIONS: Tenant shall not make, or suffer to be made, any
alteration or addition to the Premises ("Alterations"), or any part thereof,
without obtaining Landlord's prior written consent and delivering to Landlord
the proposed architectural and structural plans for all such Alterations at
least fifteen (15) days prior to the start of construction. If such Alterations
affect the structure of the Building, Tenant additionally agrees to reimburse
Landlord its reasonable out-of-pocket costs incurred in reviewing Tenant's
plans. After

                                     Page 7
<PAGE>

obtaining Landlord's consent, which consent shall state whether or not Landlord
will require Tenant to remove such Alteration at the expiration or earlier
termination of this Lease, Tenant shall not proceed to make such Alterations
until Tenant has obtained all required governmental approvals and permits, and
provides Landlord reasonable security, in form reasonably approved by Landlord,
to protect Landlord against mechanics' lien claims. Tenant agrees to provide
Landlord (i) written notice of the anticipated and actual start-date of the
work, (ii) a complete set of half-size (15" X 21") vellum as-built drawings, and
(iii) a certificate of occupancy for the work upon completion of the
Alterations. All Alterations shall be constructed in compliance with all
applicable building codes and laws including, without limitation, the Americans
with Disabilities Act of 1990 as amended from time to time. Upon the Expiration
Date, all Alterations, except movable furniture and trade fixtures, shall become
a part of the realty and belong to Landlord but shall nevertheless be subject to
removal by Tenant as provided in Section 6 above. Alterations which are not
deemed as trade fixtures include heating, lighting, electrical systems, air
conditioning, walls, carpeting, or any other installation which has become an
integral part of the Premises. Landlord approves Tenant's right to finance and
to secure under the California Uniform Commercial Code, Tenant's trade fixtures,
equipment and other personal property which may be affixed to the Premises, and
Landlord shall reasonably cooperate with the requests of any lessors of, or
lenders holding a security interest in, such trade fixtures and equipment,
provided that such cooperation does not materially affect Landlord's rights
under this Lease. All Alterations shall be maintained, replaced or repaired by
Tenant at its sole cost and expense.

Notwithstanding the foregoing, Tenant shall be entitled, without obtaining
Landlord's consent, to make Alterations which do not affect the structure of the
Building and which do not cost more than Fifty Thousand Dollars ($50,000.00) per
Alteration ("Permitted Alterations"); provided, however, that: (i) Tenant shall
still be required to comply with all other provisions of this paragraph; and
(ii) such Permitted Alterations are subject to removal by Tenant at Landlord's
election pursuant to Section 6.B. above at the expiration or earlier termination
of the Lease.

     B. FREE FROM LIENS: Tenant shall keep the Premises free from all liens
arising out of work performed, materials furnished, or obligations incurred by
Tenant or claimed to have been performed for Tenant. In the event Tenant fails
to discharge any such lien within ten (10) days after receiving notice of the
filing, Landlord shall be entitled to discharge the lien at Tenant's expense and
all resulting costs incurred by Landlord, including attorney's fees shall be due
from Tenant as additional rent.

     C. COMPLIANCE WITH GOVERNMENTAL REGULATIONS: The term Laws or Governmental
Regulations shall include all federal, state, county, city or governmental
agency laws, statutes, ordinances, standards, rules, requirements, or orders now
in force or hereafter enacted, promulgated, or issued. The term also includes
government measures regulating or enforcing public access, traffic mitigation,
occupational, health, or safety standards for employers, employees, landlords,
or tenants. Tenant, at Tenant's sole expense shall make all repairs,
replacements, alterations, or improvements to the Premises (other than repairs,
replacements, Alterations or improvements to the structural portions of the
Building and the Common Areas of the Project unless such are required due to
Tenant's specific use, occupancy or Alterations) needed to comply with all
Governmental Regulations. The judgment of any court of competent jurisdiction or
the admission of Tenant in any action or proceeding against Tenant (whether
Landlord be a party thereto or not) that Tenant has violated any such law,
regulation or other requirement in its use of the Premises shall be conclusive
of that fact as between Landlord and Tenant.

     D. BACK-UP GENERATOR: Tenant shall have the right, subject to Landlord's
prior written

                                     Page 8
<PAGE>

consent (which consent shall be subject to the terms in this Section 7.C. but
which shall not otherwise be unreasonably withheld, conditioned or delayed) to
install one 300 KW back-up electrical generator, together with reasonably
necessary connections from the location of such generator to the Premises and
related above-ground diesel fuel storage tanks (collectively, "Generator"),
either in the parking lot area of the Common Area or on the roof of the Building
in a location reasonably designated by Landlord and reasonably acceptable to
Tenant. Without otherwise limiting the criteria upon which Landlord may withhold
its consent to any proposed Generator, withholding of consent shall be
presumptively reasonable if Landlord withholds its consent due to concerns
regarding the appearance of the Generator, its impact on structural aspects of
the Building or Common Area improvements, ventilation concerns, or actual or
potential loss of any parking spaces or areas for the Project due to
installation of the Generator, provided that if Tenant agrees to take steps (at
Tenant's expense) to mitigate any such concerns raised by Landlord in a manner
reasonably satisfactory to Landlord, Landlord shall grant its consent to the
Generator subject to such mitigation. All locations or areas on the Building
roof or within the Common Area where the Generator is located shall be provided
by Landlord without additional rent. Tenant shall install the Generator at its
sole expense and with components reasonably acceptable to Landlord, and shall be
responsible for maintenance of the Generator, for compliance with all applicable
Laws with respect to the Generator, and for any damage caused by the
installation of the Generator or related to the Generator. At the end of the
Term, Tenant shall remove the Generator from the Project and restore those
affected areas of the Premises to their condition prior to the installation of
the Generator.

    E. COMMUNICATIONS AND POWER CONDUITS AND EQUIPMENT: Notwithstanding the
provisions of Section 7.A above, Tenant shall have the right, at its sole cost
and expense, to trench in any exterior area within the boundaries of the Project
reasonably approved by Landlord (which approval may be denied if such trenching
adversely affects other Tenant's in the Project) for the purposes of "hard
wiring" voice, data and power transmissions to the Building ("Conduit"),
pursuant to reasonable specifications which have been approved in writing by
Landlord and Tenant. At the end of the Term hereof, Tenant shall not be required
to remove any properly installed underground Conduit. Tenant shall also have the
exclusive right, at its sole cost and expense, to construct, maintain, operate
and repair an equipment area outside of the Building, including, without
limitation, the rooftop of the Building, which area shall include, without
limitation, the following equipment and systems: UPS battery systems (the "Power
Systems"), and antennae, satellite dishes and other communications systems and
equipment ("Communications Systems"). All permits, application fees, and all
costs associated with the Power and Communications Systems shall be Tenant's
responsibility. Tenant, at its sole cost and expense, shall have the exclusive
right to install, maintain, and from time to time replace all or a portion of
the Power and Communications Systems on the roof of the Building, provided that
prior to commencing any installation or maintenance, Tenant shall (i) obtain
Landlord's prior approval (which approval shall not be unreasonably withheld,
conditioned or delayed) of the proposed size, weight and location of such Power
and Communications Systems and method for fastening such Power and
Communications Systems to the roof, (ii) such installation and/or replacement
shall comply strictly with all Laws and the conditions of any bond or warranty
maintained by Landlord on the roof, and (iii) obtain, at Tenant's sole cost and
expense, any necessary federal, state, and municipal permits, licenses and
approvals, and deliver copies thereof to Landlord. Landlord may supervise any
roof penetration related to the installation of any Power or Communications
Systems, and Landlord may charge Landlord's reasonable out-of-pocket costs of
any such supervision performed by a third-party consultant to Tenant. Tenant
agrees that all installation, construction and maintenance shall be performed in
a neat,

                                     Page 9
<PAGE>

responsible, and workmanlike manner, using generally acceptable construction
standards, consistent with such reasonable requirements as shall be imposed by
Landlord. Tenant shall repair any damage to the Building caused by Tenant's
installation, maintenance, replacement, use or removal of the Power and
Communications Systems. The Power and Communications Systems shall be considered
Tenant's Trade Fixtures (as defined below) and shall remain the property of
Tenant, and Tenant may remove the Power and Communications Systems at its cost
at any time during the Term. Tenant shall remove the Communications Systems at
Tenant's cost and expense upon the expiration or termination of this Lease and
shall restore the Building and Premises to their condition prior to the
installation of the Communications Systems. Landlord makes no warranty or
representation that the Building or any portions thereof are suitable for the
use of the Power or Communications Systems, it being assumed that Tenant has
satisfied itself thereof. Tenant shall protect, defend, indemnify and hold
harmless Landlord and Landlord's Agents from and against claims, damages,
liabilities, costs and expenses of every kind and nature, including attorneys'
fees, incurred by or asserted against Landlord arising out of Tenant's
installation, maintenance, replacement, use or removal of the Power and
Communications Systems.

8.   MAINTENANCE OF PREMISES:

     A. LANDLORD'S OBLIGATIONS: Landlord at its sole cost and expense, shall
maintain in good condition, order, and repair, and replace as and when
necessary, the foundation, footings, poured concrete floors, exterior walls,
load bearing walls, and roof structure of the Building.

Notwithstanding the foregoing, during the initial Term of this Lease, Landlord
shall be obligated to perform and pay for the work of replacement of the roof
membrane at the end of its useful life (as determined in accordance with
Landlord's reasonable judgement and consistent with prudent standards for
building owners in the San Jose area) at Landlord's sole cost and expense. If
Landlord fails to reasonably act to perform its repair obligations of this
Paragraph 8.A, and such failure materially affects Tenant's ability to use and
occupy the Premises for the purposes permitted herein, Tenant shall have the
right, but not the obligation, to perform such repairs and/or maintenance if
such failure continues for more than ten (10) business days after written notice
from Tenant; provided, however, that if the nature of the repairs and/or
maintenance to be completed by Landlord is such that more than 10 business days
are required to complete such repairs and/or maintenance, Landlord shall have
such additional time as is reasonably necessary to complete such repairs and/or
maintenance and thereafter diligently pursue such repairs and/or maintenance to
completion. In such event, Landlord shall reimburse Tenant for the reasonable
costs incurred by Tenant to complete such repairs and/or maintenance within
thirty (30) days after receipt of Tenant's written demand therefore, together
with copies of the paid invoices evidencing the costs incurred by Tenant. Any
repairs and/or maintenance permitted herein shall be performed in a good and
workmanlike manner by licensed contractors. If Landlord objects to the repairs
and/or maintenance performed or the expenses incurred by Tenant in performing
such work, Landlord shall deliver a written notice of Landlord's objection to
Tenant within thirty (30) days after Landlord's receipt of Tenant's invoice
evidencing the expenses incurred by Tenant. Landlord's notice shall set forth in
reasonable detail Landlord's reasons for its claim that such repairs and/or
maintenance were not required or were not Landlord's obligations in the terms of
this lease and/or the reasons for Landlord's dispute of the expenses incurred by
Tenant in performing such work. If Landlord and Tenant fail to resolve any such
dispute within said thirty (30) day period, after Landlord has notified Tenant
of Landlord's objections, the matter shall be resolved pursuant to Section 19.E.
below.

     B. TENANT'S OBLIGATIONS: Except those items for which Landlord is obligated
pursuant to Section 8.A. above, Tenant shall clean,

                                    Page 10
<PAGE>

maintain, repair and replace when necessary the Premises and every part thereof
through regular inspections and servicing, including but not limited to: (i) all
plumbing and sewage facilities, (ii) all heating ventilating and air
conditioning facilities and equipment, (iii) all fixtures, interior walls
floors, carpets and ceilings, (iv) all windows, door entrances, plate glass and
glazing systems including caulking, and skylights, (v) all electrical facilities
and equipment, (vi) all automatic fire extinguisher equipment, (vii) the parking
lot and all underground utility facilities servicing the Premises, (viii) all
elevator equipment, (ix) the roof membrane system, and (x) all waterscape,
landscaping and shrubbery. All wall surfaces and floor tile are to be maintained
in an as good a condition as when Tenant took possession free of holes, gouges,
or defacements. With respect to items (ii), (viii) and (ix) above, Tenant shall
provide Landlord a copy of a service contract between Tenant and a licensed
service contractor providing for periodic maintenance of all such systems or
equipment in conformance with the manufacturer's recommendations. Tenant shall
provide Landlord a copy of such preventive maintenance contracts and paid
invoices for the recommended work if requested in writing by Landlord.

     C. LANDLORD AND TENANT'S OBLIGATIONS REGARDING REIMBURSABLE OPERATING
COSTS: In addition to the direct payment by Tenant of expenses as provided in
Sections 8.B, 9, 10 and 11 of this Lease, Tenant agrees to reimburse Landlord
for Tenant's Allocable Share (as defined in Section 8.E below) of Reimbursable
Operating Costs (as defined in Section 8.D below) resulting from Landlord
payment of expenses related to the Building or Project which are not otherwise
paid by Tenant directly. Tenant agrees to pay its Allocable Share of the
Reimbursable Operating Costs as additional rental within ten (10) business days
of written invoice from Landlord.

     D. REIMBURSABLE OPERATING COSTS: For purposes of calculating Tenant's
Allocable Share of Building and Project Costs, the term "Reimbursable Operating
Costs" is defined as all costs and expenses of the nature hereinafter described
which are incurred by Landlord in connection with ownership and operation of the
Building or the Project in which the Premises are located (excluding any costs
allocable to any other occupant of the Project), together with such additional
facilities as may be determined by Landlord to be reasonably desirable or
necessary to the ownership and operation of the Building and/or Project. All
costs and expenses shall be determined in accordance with generally accepted
accounting principles which shall be consistently applied (with accruals
appropriate to Landlord's business), including but not limited to the following:
(i) Common Area utilities, including water, power, telephone, heating, lighting,
air conditioning, ventilating, and Building utilities to the extent not
separately metered; (ii) Common Area maintenance and service agreements for the
Building and/or Project and the equipment therein, including without limitation,
common area janitorial services, alarm and security services, exterior window
cleaning, and maintenance of the sidewalks, landscaping, waterscape, roof
membrane of the Building (except as provided in Section 8.A.), parking areas,
driveways, service areas, mechanical rooms, elevators, and the Building
exterior; (iii) insurance premiums and costs, including without limitation, the
premiums and cost of fire, casualty and liability coverage and rental abatement
and, if elected by Landlord, earthquake insurance applicable to the Building or
Project; (iv) repairs, replacements and general maintenance (excluding repairs
and general maintenance paid by proceeds of insurance or by Tenant or other
third parties, and repairs or alterations attributable solely to tenants of the
Building or Project other than Tenant); and (v) all Taxes which may be levied on
the Building or Project, upon the occupancy of the Building or Project and
including any substitute or additional charges which may be imposed during, or
applicable to the Lease Term including real estate tax increases due to a sale,
transfer or other change of ownership of the Building or Project, as such Taxes
are levied or appear on the City and County tax bills and

                                    Page 11
<PAGE>

assessment rolls. Landlord shall have no obligation to provide guard services or
other security measures for the benefit of the Project. Tenant assumes all
responsibility for the protection of Tenant and Tenant's Agents from acts of
third parties; provided, however, that nothing contained herein shall prevent
Landlord, at its sole option, from providing security measures for the Project.
This is a "Net" Lease, meaning that Base Monthly Rent is paid to Landlord
absolutely net of all costs and expenses. The provision for payment of
Reimbursable Operating Costs by means of periodic payment of Tenant's Allocable
Share of Building and/or Project Costs is intended to pass on to Tenant and
reimburse Landlord for all costs of operating and managing the Building and/or
Project.

Notwithstanding anything to the contrary contained in this Lease, the following
shall not be included within Reimbursable Operating Costs: (i) leasing
commissions, attorneys' fees, costs, disbursements, and other expenses incurred
in connection with negotiations or disputes with tenants or in connection with
leasing, renovating, or improving space for tenants or other occupants or
prospective tenants or other occupants of the Building or the Project; (ii) the
cost of any service sold to any tenant (including Tenant) or other occupant for
which Landlord is entitled to be reimbursed as an additional charge or rental
over and above the basic rent and escalations payable under the lease with that
tenant; (iii) any depreciation on the Building or the Project; (iv) expenses in
connection with services or other benefits of a type that are not provided to
Tenant but which are provided another tenant or occupant of the Building or
Project; (v) costs incurred due to Landlord's violation of any terms or
conditions of this Lease or any other lease relating to the Building or Project;
(vi) overhead profit increments paid to Landlord's subsidiaries or affiliates
for services on or to the Building or Project or for supplies or other materials
to the extent that the cost of the services, supplies, or materials exceeds the
cost that would have been paid had the services, supplies, or materials been
provided by unaffiliated parties on a competitive basis; (vii) all interest,
loan fees, and other carrying costs related to any mortgage or deed of trust or
related to any capital item, and all rental and other payable due under any
ground or underlying lease, or any lease for any equipment ordinarily considered
to be of a capital nature (except janitorial equipment which is not affixed to
the Building); (viii) any compensation paid to clerks, attendants, or other
persons in commercial concessions operated by Landlord; (ix) advertising and
promotional expenditures; (x) costs of repairs and other work occasioned by
fire, windstorm, or other casualty of an insurable nature and intended to be
covered by insurance required to be carried by Landlord; (xi) any costs, fines,
or penalties incurred due to violations by Landlord of any governmental rule or
authority, this Lease or any other lease in the Project, or due to Landlord's
negligence or willful misconduct; (xii) costs for sculpture, paintings, or other
objects of art (nor insurance thereon or extraordinary security in connection
therewith); (xiii) wages, salaries, or other compensation paid to any executive
employees above the grade of building manager; (xiv) the cost of correcting any
building code or other violations which were violations prior to the
Commencement Date; (xv) the cost of containing, removing, or otherwise
remediating any contamination of the Project (including the underlying land and
ground water) by any toxic or hazardous materials where such contamination was
not caused by Tenant or its agents, invitees, employees, or suppliers; (xvi)
reserves for any Reimbursable Operating Costs; (xvii) repairs and maintenance to
buildings of the Project in which Tenant is not an occupant, and (xviii) any
property management or similar fee in excess of three percent (3%) of the Base
Monthly Rent.

     E. TENANT'S ALLOCABLE SHARE: For purposes of prorating Reimbursable
Operating Costs which Tenant shall pay, Tenant's Allocable Share of Reimbursable
Operating Costs shall be computed by multiplying the Reimbursable Operating
Costs by a fraction, the numerator of which is the rentable square footage of
the Premises and the denominator of

                                    Page 12
<PAGE>

which is either the total rentable square footage of the Building if the service
or cost is allocable only to the Building, or the total square footage of the
Project if the service or cost is allocable to the entire Project. Tenant's
obligation to share in Reimbursable Operating Costs shall be adjusted to reflect
the Lease Commencement Date and Expiration Date of this Lease and is subject to
recalculation in the event of expansion of the Building or Project. Tenant's
Allocable Share of the Project is 32.6%

     F. WAIVER OF LIABILITY: Failure by Landlord to perform any defined
services, or any cessation thereof, when such failure is caused by accident,
breakage, repairs, strikes, lockout or other labor disturbances or labor
disputes of any character or by any other cause, similar or dissimilar, shall
not render Landlord liable to Tenant in any respect, including damages to either
person or property, nor be construed as an eviction of Tenant, nor cause an
abatement of rent, nor relieve Tenant from fulfillment of any covenant or
agreement hereof. Should any equipment or machinery utilized in supplying the
services listed herein break down or for any cause cease to function properly,
upon receipt of written notice from Tenant of any deficiency or failure of any
services, Landlord shall use reasonable diligence to repair the same promptly,
but Tenant shall have no right to terminate this Lease and shall have no claim
for rebate of rent or damages on account of any interruptions in service
occasioned thereby or resulting therefrom. Tenant waives the provisions of
California Civil Code Sections 1941 and 1942 concerning the Landlord's
obligation of tenantability and Tenant's right to make repairs and deduct the
cost of such repairs from the rent. Landlord shall not be liable for a loss of
or injury to person or property, however occurring, through or in connection
with or incidental to furnishing, or its failure to furnish, any of the
foregoing.

     G. AUDIT RIGHTS: Tenant shall have the right, at Tenant's sole cost and
expense, provided Tenant utilizes a Certified Public Accountant (the "CPA"),
upon at least thirty (30) days prior notice to Landlord at any time during
regular business hours, and no more frequently than twice per calendar year, to
audit Landlord's records pertaining to Operating Expenses for the immediately
previous calendar year only, which shall be maintained in the State of
California. Any disputes between Landlord and Tenant concerning Landlord's
accounting of Additional Rent shall be resolved using generally accepted
accounting principles ("GAAP"). If it is determined from Tenant's audit of such
operating expenses that Tenant was overcharged by more than three percent (3%),
such overcharge shall entitle Tenant to credit against its next payment of
Reimbursable Operations Costs the amount of the overcharge and the costs
associated with the audit (and, if such credit occurs following the expiration
of the Term, Landlord shall pay the amount of such credit to Tenant within
thirty (30) days after Landlord's receipt of an invoice from Tenant). If the
audit determines that the Tenant was overcharged less than three percent (3%),
such overcharge shall entitle Tenant to credit against its next payment of
Reimbursable Operations Costs the amount of the overcharge and Tenant shall pay
for all costs associated with the audit. If the audit shall determine that
Tenant was undercharged for the Reimbursable Operations Costs, Tenant shall
promptly pay the amount of such undercharge to Landlord and Tenant shall pay for
all costs associated with the audit. Permitted Assignees of Tenant may only
audit periods for which they occupy the Leased Premises and subtenants of Tenant
are not entitled to any audit rights. Tenant agrees to keep all information
thereby obtained by Tenant confidential.

9.   HAZARD INSURANCE:

     A. TENANT'S USE: Tenant shall not use or permit the Premises, or any part
thereof, to be used for any purpose other than that for which the Premises are
hereby leased; and no use of the Premises shall be made or permitted, nor acts
done, which will cause any permanent increase in premiums or a cancellation of
any insurance policy covering the Premises or any part thereof, nor shall Tenant
sell or permit to be sold, kept, or used in or about the Premises, any

                                    Page 13
<PAGE>

article prohibited by the standard form of fire insurance policies, unless such
use is covered by an endorsement to such policies. Tenant shall, at its sole
cost, comply with all requirements of any insurance company or organization
necessary for the maintenance of reasonable fire and public liability insurance
covering the Premises and appurtenances.

     B. LANDLORD'S INSURANCE: Landlord agrees to purchase and keep in force
fire, extended coverage insurance in an amount equal to the replacement cost of
the Building (not including Tenant's Alterations, the Tenant Improvements or
Tenant's Trade Fixtures) as determined by Landlord's insurance company's
appraisers. At Landlord's election, such fire and property damage insurance may
be endorsed to cover loss caused by such additional perils against which
Landlord may elect to insure, including earthquake and/or flood, and shall
contain reasonable deductibles. Additionally Landlord may maintain a policy of
(i) commercial general liability insurance insuring Landlord (and such others
with an insurable interest in the Premises designated in writing by Landlord)
against liability for personal injury, bodily injury, death and damage to
property occurring or resulting from an occurrence in, on or about the Premises
or Project in an amount as Landlord determines is reasonably necessary for its
protection, and (ii) rental loss insurance covering a twelve (12) month period.
All insurance procured by Landlord pursuant to this Section shall be at
commercially reasonable rates. Tenant agrees to pay Landlord as additional rent,
on demand, the full cost of said insurance as evidenced by insurance billings to
Landlord, and in the event of damage covered by said insurance, the amount of
any deductible under such policy. Payment shall be due to Landlord within ten
(10) days after written invoice to Tenant. It is understood and agreed that
Tenant's obligation under this Section will be prorated to reflect the Lease
Commencement and Expiration Dates.

     C. TENANT'S INSURANCE: Tenant agrees, at its sole cost, to insure its
personal property, Tenant Improvements, and Alterations for their full
replacement value (without depreciation) and to obtain worker's compensation and
public liability and property damage insurance for occurrences within the
Premises with a combined single limit of not less than Five Million Dollars
($5,000,000.00). Tenant's liability insurance shall be primary insurance
containing a cross-liability endorsement, and shall provide coverage on an
"occurrence" rather than on a "claims made" basis. Tenant shall name Landlord
and any Landlord's lender designated in writing as an additional insured and
shall deliver certificates of insurance and renewal certificates to Landlord.
All such policies shall provide for thirty (30) days' prior written notice to
Landlord of any cancellation, termination, or reduction in coverage.

     D. WAIVER: Landlord and Tenant hereby waive all rights each may have
against the other on account of any loss or damage sustained by Landlord or
Tenant, as the case may be, or to the Premises or its contents, which may arise
from any risk covered by their respective insurance policies (or which would
have been covered had such insurance policies been maintained in accordance with
this Lease) as set forth above. The Parties shall use their reasonable efforts
to obtain from their respective insurance companies a waiver of any right of
subrogation which said insurance company may have against Landlord or Tenant, as
the case may be.

10. TAXES: Tenant shall be liable for and shall pay as additional rental, prior
to delinquency, (provided Tenant receives a tax bill at least 30 days prior to
the delinquency date) the following (collectively referred to herein as
"Taxes"): (i) all taxes and assessments levied against Tenant's personal
property and trade or business fixtures; (ii) all real estate taxes and
assessment installments or other impositions or charges which may be levied on
the Premises or upon the occupancy of the Premises, including any substitute or
additional charges which may be imposed applicable to the Lease Term; and (iii)
real estate tax increases due to an increase in assessed value resulting from a
sale, transfer or other change of ownership of the Premises as it appears on the
City and County tax bills during

                                    Page 14
<PAGE>

the Lease Term (other than a change of ownership within the existing partnership
structure resulting in a reassessment). All real estate taxes shall be prorated
to reflect the Lease Commencement and Expiration Dates. If, at any time during
the Lease Term a tax, excise on rents, business license tax or any other tax,
however described, is levied or assessed against Landlord as a substitute or
addition, in whole or in part, for taxes assessed or imposed on land or
Buildings, Tenant shall pay and discharge its pro rata share of such tax or
excise on rents or other tax before it becomes delinquent; except that this
provision is not intended to cover net income taxes, franchise inheritance, gift
or estate tax imposed upon Landlord. In the event that a tax is placed, levied,
or assessed against Landlord and the taxing authority takes the position that
Tenant cannot pay and discharge its pro rata share of such tax on behalf of
Landlord, then at Landlord's sole election, Landlord may increase the Base
Monthly Rent by the exact amount of such tax and Tenant shall pay such increase.
If by virtue of any application or proceeding brought by Landlord, there results
a reduction in the assessed value of the Premises during the Lease Term, Tenant
agrees to pay Landlord a fee consistent with reasonable fees typically charged
by a third party appeal firm for such services. Property Taxes also shall not
include any tax or assessment expense: (i) levied on Landlord's rental income
unless such tax or assessment expense is imposed in lieu of real property taxes;
(ii) in excess of the amount which would be payable if such tax or assessment
expense were paid in installments over the longest possible term; or (iii)
imposed on land and improvements other than the land upon which the Building is
situated. Tenant, at its sole cost, shall have the right, by appropriate
proceeding, to contest or protest any change in Taxes in its own name, and/or
the name of Landlord if Landlord does not elect to contest such change. If a
reduction in Taxes is obtained for any year in which Tenant paid such Taxes,
then Tenant shall receive a credit or a refund of Tenant's over payment along
with Tenant's pro-rata share of interest corresponding to such amount to the
extent received from the taxing authority.

11. UTILITIES: Tenant shall pay directly to the providing utility all water,
gas, electric, telephone, and other utilities supplied to the Premises. Landlord
shall not be liable for loss of or injury to person or property, however
occurring, through or in connection with or incidental to furnishing or the
utility company's failure to furnish utilities to the Premises, and in such
event Tenant shall not be entitled to abatement or reduction of any portion of
Base Monthly Rent or any other amount payable under this Lease unless utility
services to the Premises are interrupted and such interruption is due to the
active negligence or willful misconduct of Landlord, in which case Tenant shall
be entitled to an abatement of rent unless such Utility or Utilities are
restored within three (3) business days thereafter.

12.  TOXIC WASTE AND ENVIRONMENTAL DAMAGE:

     A. TENANT'S RESPONSIBILITY: Without the prior written consent of Landlord,
Tenant or Tenant's agents, employees, contractors and invitees ("Tenant's
Agents") shall not bring, use, or permit upon the Premises, or generate, create,
release, emit, or dispose (nor permit any of the same) from the Premises any
chemicals, toxic or hazardous gaseous, liquid or solid materials or waste,
including without limitation, material or substance having characteristics of
ignitability, corrosivity, reactivity, or toxicity or substances or materials
which are listed on any of the Environmental Protection Agency's lists of
hazardous wastes or which are identified in Division 22 Title 26 of the
California Code of Regulations as the same may be amended from time to time or
any wastes, materials or substances which are or may become regulated by or
under the authority of any applicable local, state or federal laws, judgments,
ordinances, orders, rules, regulations, codes or other governmental
restrictions, guidelines or requirements. ("Hazardous Materials") except for
those substances customary in typical office uses and the other Permitted Uses
and fuel and other supplies for the operation and maintenance of Tenant's
emergency

                                    Page 15
<PAGE>

generator(s), if any, and the Building Systems to be maintained by Tenant, for
which no consent shall be required. In order to obtain consent, Tenant shall
deliver to Landlord its written proposal describing the toxic material to be
brought onto the Premises, measures to be taken for storage and disposal
thereof, safety measures to be employed to prevent pollution of the air, ground,
surface and ground water. Landlord's approval may be withheld in its reasonable
judgment. In the event Landlord consents to Tenant's use of Hazardous Materials
on the Premises or such consent is not required, Tenant represents and warrants
that it shall comply with all Governmental Regulations applicable to Hazardous
Materials including doing the following: (i) adhere to all reporting and
inspection requirements imposed by Federal, State, County or Municipal laws,
ordinances or regulations and will provide Landlord a copy of any such reports
or agency inspections; (ii) obtain and provide Landlord copies of all necessary
permits required for the use and handling of Hazardous Materials on the
Premises; (iii) enforce Hazardous Materials handling and disposal practices
consistent with industry standards; (iv) surrender the Premises free from any
Hazardous Materials arising from Tenant's bringing, using, permitting,
generating, creating, releasing, emitting or disposing of Hazardous Materials;
and (v) properly close the facility with regard to Hazardous Materials including
the removal or decontamination of any process piping, mechanical ducting,
storage tanks, containers, or trenches which have come into contact with
Hazardous Materials as a result of Tenant's acts, and only if required, obtain a
closure certificate from the local administering agency prior to the Expiration
Date.

     B. TENANT'S INDEMNITY REGARDING HAZARDOUS MATERIALS: Tenant shall, at its
sole cost and expense, comply with all laws pertaining to, and shall with
counsel reasonably acceptable to Landlord, indemnify, defend and hold harmless
Landlord and Landlord's trustees, shareholders, directors, officers, employees,
partners, affiliates, and agents from, any claims, liabilities, costs or
expenses incurred or suffered arising from the bringing, using, permitting,
generating, emitting or disposing of Hazardous Materials by Tenant, Tenant's
Agents or a third party (other than adjoining landowners or occupants of
adjacent properties) through the surface soils of the Premises during the Lease
Term or the violation of any Governmental Regulation or environmental law, by
Tenant or Tenant's Agents. Tenant's indemnification, defense, and hold harmless
obligations include, without limitation, the following to the extent relating to
Tenant's indemnification obligations under the preceding sentence: (i) claims,
liability, costs or expenses resulting from or based upon administrative,
judicial (civil or criminal) or other action, legal or equitable, brought by any
private or public person under common law or under the Comprehensive
Environmental Response, Compensation and Liability Act of 1980 as amended
("CERCLA"), the Resource Conservation and Recovery Act of 1980 ("RCRA") or any
other Federal, State, County or Municipal law, ordinance or regulation now or
hereafter in effect; (ii) claims, liabilities, costs or expenses pertaining to
the identification, monitoring, cleanup, containment, or removal of Hazardous
Materials from soils, riverbeds or aquifers including the provision of an
alternative public drinking water source; (iii) all costs of defending such
claims; (iv) losses attributable to diminution in the value of the Premises or
the Building; (v) loss or restriction of use of rentable space in the Building;
(vi) Adverse effect on the marketing of any space in the Building; and (vi) all
other liabilities, obligations, penalties, fines, claims, actions (including
remedial or enforcement actions of any kind and administrative or judicial
proceedings, orders or judgments), damages (including consequential and punitive
damages), and costs (including attorney, consultant, and expert fees and
expenses) resulting from the release or violation. This Section 12.B shall
survive the expiration or termination o this Lease.

     C. ACTUAL RELEASE BY TENANT: Tenant agrees to notify Landlord of any
lawsuits or orders which relate to the remedying of or

                                    Page 16
<PAGE>

actual release of Hazardous Materials on or into the soils or ground water at or
under the Premises of which Tenant is aware or responsible for. Tenant shall
also provide Landlord all notices required by Section 25359.7(b) of the Health
and Safety Code and all other notices required by law to be given to Landlord in
connection with Hazardous Materials. Without limiting the foregoing, Tenant
shall also deliver to Landlord, within twenty (20) days after receipt thereof,
any written notices from any governmental agency alleging a material violation
of, or material failure to comply with, any laws, regulations, ordinances or
orders, the violation of which or failure to comply with poses a foreseeable and
material risk of contamination of the ground water or injury to humans (other
than injury solely to Tenant or Tenant's Agents.

     In the event of any release on or into the Premises or into the soil or
ground water under the Premises, the Building or the Project of any Hazardous
Materials used, treated, stored or disposed of by Tenant or Tenant's Agents,
Tenant agrees to comply, at its sole cost, with all laws, regulations,
ordinances and orders of any federal, state or local agency relating to the
monitoring or remediation of such Hazardous Materials. In the event of any such
release of Hazardous Materials Tenant shall immediately give verbal and
follow-up written notice of the release to Landlord, and Tenant agrees to meet
and confer with Landlord and its lender to attempt to eliminate and mitigate any
financial exposure to such lender and resultant exposure to Landlord under
California Code of Civil Procedure Section 736(b) as a result of such release,
and promptly to take reasonable monitoring, cleanup and remedial steps given,
inter alia, the historical commercial uses to which the Property has and
continues to be used, the risks to public health posed by the release, the then
available technology and the costs of remediation, cleanup and monitoring,
consistent with acceptable customary practices for the type and severity of such
contamination and all applicable laws. Nothing in the preceding sentence shall
eliminate, modify or reduce the obligation of Tenant under 12.B of this Lease to
indemnify, defend and hold Landlord harmless from any claims liabilities, costs
or expenses incurred or suffered by Landlord. Tenant shall provide Landlord
prompt written notice of Tenant's monitoring, cleanup and remedial steps.

     In the absence of an order of any federal, state or local governmental or
quasi-governmental agency relating to the cleanup, remediation or other response
action required by applicable law, any dispute arising between Landlord and
Tenant concerning Tenant's obligation to Landlord under this Section 12.C
concerning the level, method, and manner of cleanup, remediation or response
action required in connection with such a release of Hazardous Materials shall
be resolved by mediation and/or arbitration pursuant to this Lease.

     D. ENVIRONMENTAL MONITORING: Landlord and its agents shall have the right
to inspect, investigate, sample and monitor the Premises including any air,
soil, water, ground water or other sampling or any other testing, digging,
drilling or analysis to determine whether Tenant is complying with the terms of
this Section 12. If Landlord discovers that Tenant is not in compliance with the
terms of this Section 12, any such costs incurred by Landlord, including
attorneys' and consultants' fees, shall be due and payable by Tenant to Landlord
within ten (10) business days following Landlord's written demand therefore.

     E. LANDLORD'S INDEMNITY REGARDING HAZARDOUS MATERIALS: Landlord represents
and warrants, to the best of its knowledge, that as of the Commencement Date,
there do not exist any Hazardous Materials in the Building, Premises or the
Project. Landlord shall indemnify and hold Tenant harmless from any claims,
liabilities, costs or expenses incurred or suffered by Tenant related to the
removal, investigation, monitoring or remediation of Hazardous Materials which
are present or which come to be present on the Premises except to the extent the
presence of such Hazardous Materials is caused by Tenant or by

                                    Page 17
<PAGE>

Tenant's failure to prevent a third party from dumping Hazardous Materials
through the surface of the Premises. Landlord's indemnification and hold
harmless obligations include, without limitation, (i) claims, liability, costs
or expenses resulting from or based upon administrative, judicial (civil or
criminal) or other action, legal or equitable, brought by any private or public
person under common law or under the Comprehensive Environmental Response,
Compensation and Liability Act of 1980 ("CERCLA"), the Resource Conservation and
Recovery Act of 1980 ("RCRA") or any other Federal, State, County or Municipal
law, ordinance or regulation, (ii) claims, liabilities, costs or expenses
pertaining to the identification, monitoring, cleanup, containment, or removal
of Hazardous Materials from soils, riverbeds or aquifers including the provision
of an alternative public drinking water source, and (iii) all costs of defending
such claims. In no event shall Landlord be liable for any consequential damages
suffered or incurred by Tenant as a result of any such contamination.

13. TENANT'S DEFAULT: The occurrence of any of the following shall constitute a
material default and breach of this Lease by Tenant: (i) Tenant's failure to pay
the Base Monthly Rent including additional rent or any other payment due under
this Lease by the date such amount is due, where such failure continues for
three (3) business days beyond written notice from Landlord that such amount was
not received by the due date, (ii) the abandonment or vacation of the Premises
by Tenant; (iii) Tenant's failure to observe and perform any other required
provision of this Lease, where such failure continues for thirty (30) days after
written notice from Landlord provided, however, that if the nature of the
Default is such that it cannot reasonably be cured within thirty (30) days,
Tenant shall not be in Default if Tenant commences within such thirty (30) day
period to cure and thereafter diligently prosecutes the same to completion; (iv)
Tenant's making of any general assignment for the benefit of creditors; (v) the
filing by or against Tenant of a petition to have Tenant adjudged a bankrupt or
of a petition for reorganization or arrangement under any law relating to
bankruptcy (unless, in the case of a petition filed against Tenant, the same is
dismissed after the filing); (vi) the appointment of a trustee or receiver to
take possession of substantially all of Tenant's assets located at the Premises
or of Tenant's interest in this Lease, where possession is not restored to
Tenant within thirty (30) days; or (vii) 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, where such seizure is not discharged
within thirty (30) days.

     A. REMEDIES: In the event of any such default by Tenant, then in addition
to other remedies available to Landlord at law or in equity, Landlord shall have
the immediate option to terminate this Lease and all rights of Tenant hereunder
by giving written notice of such intention to terminate. In the event Landlord
elects to so terminate this Lease, Landlord may recover from Tenant all the
following: (i) the worth at time of award of any unpaid rent which had been
earned at the time of such termination; (ii) the worth at time of award of the
amount by which the unpaid rent which would have been earned after termination
until the time of award exceeds the amount of such rental loss for the same
period that Tenant proves could have been reasonably avoided; (iii) the worth at
time of award of the amount by which the unpaid rent for the balance of the
Lease Term after the time of award exceeds the amount of such rental loss that
Tenant proves could be reasonably avoided; (iv) any other amount necessary to
compensate Landlord for all detriment proximately caused by Tenant's failure to
perform its obligations under this Lease, or which in the ordinary course of
things would be likely to result therefrom; including the following: (x)
expenses for repairing the Premises to the condition required upon surrender of
this Lease for purposes of reletting, (y) broker's fees, advertising costs or
other expenses of reletting the Premises, and (z) costs of carrying the Premises
such as taxes, insurance premiums, utilities and security precautions; and (v)
at Landlord's election, such other amounts in

                                    Page 18
<PAGE>

addition to or in lieu of the foregoing as may be permitted by applicable
California law. The term "rent", as used herein, is defined as the minimum
monthly installments of Base Monthly Rent and all other sums required to be paid
by Tenant pursuant to this Lease, all such other sums being deemed as additional
rent due hereunder. As used in (i) and (ii) above, "worth at the time of award"
shall be computed by allowing interest at a rate equal to the discount rate of
the Federal Reserve Bank of San Francisco plus five (5%) percent per annum. As
used in (iii) above, "worth at the time of award" shall be computed by
discounting such amount at the discount rate of the Federal Reserve Bank of San
Francisco at the time of award plus one percent (1%).

     B. RIGHT TO RE-ENTER: In the event of any such default by Tenant, Landlord
shall have the right, after terminating this Lease, as permitted by law, to
re-enter the Premises and remove all persons and property. Such property may be
removed and stored in a public warehouse or elsewhere at the cost of and for the
account of Tenant, and disposed of by Landlord in any manner permitted by law.

     C. ABANDONMENT: If Landlord does not elect to terminate this Lease as
provided in Section 13.A or 13.B above, then the provisions of California Civil
Code Section 1951.4, (Landlord may continue the lease in effect after Tenant's
breach and abandonment and recover rent as it becomes due if Tenant has a right
to sublet and assign, subject only to reasonable limitations) as amended from
time to time, shall apply and Landlord may from time to time, without
terminating this Lease, either recover all rental as it becomes due or relet the
Premises or any part thereof for such term or terms and at such rental or
rentals and upon such other terms and conditions as Landlord in its sole
discretion may deem advisable, with the right to make alterations and repairs to
the Premises. In the event that Landlord elects to so relet, rentals received by
Landlord from such reletting shall be applied in the following order to: (i) the
payment of any indebtedness other than Base Monthly Rent due hereunder from
Tenant to Landlord; (ii) the payment of any cost of such reletting; (iii) the
payment of the cost of any alterations and repairs to the Premises; and (iv) the
payment of Base Monthly Rent due and unpaid hereunder. The residual rentals, if
any, shall be held by Landlord and applied in payment of future Base Monthly
Rent as the same may become due and payable hereunder. Landlord shall have the
obligation to market the space but shall have no obligation to relet the
Premises following a default if Landlord has other comparable available space
within the Building or Project. In the event the portion of rentals received
from such reletting which is applied to the payment of rent hereunder during any
month be less than the rent payable during that month by Tenant hereunder, then
Tenant shall pay such deficiency to Landlord immediately upon demand. Such
deficiency shall be calculated and paid monthly. Tenant shall also pay to
Landlord, as soon as ascertained, any costs and expenses incurred by Landlord in
such reletting or in making such alterations and repairs not covered by the
rentals received from such reletting.

     D. NO TERMINATION: Landlord's re-entry or taking possession of the Premises
pursuant to 13.B or 13.C shall not be construed as an election to terminate this
Lease unless written notice of such intention is given to Tenant or unless the
termination is decreed by a court of competent jurisdiction. Notwithstanding any
reletting without termination by Landlord because of any default by Tenant,
Landlord may at any time after such reletting elect to terminate this Lease for
any such default.

     E. NON-WAIVER: Landlord may accept Tenant's payments without waiving any
rights under this Lease, including rights under a previously served notice of
default. No payment by Tenant or receipt by Landlord of a lesser amount than any
installment of rent due shall be deemed as other than payment on account of the
amount due. If Landlord accepts payments after serving a notice of default,
Landlord may nevertheless commence and pursue an action to enforce rights and
remedies under the previously served notice of default without

                                    Page 19
<PAGE>

giving Tenant any further notice or demand. Furthermore, the Landlord's
acceptance of rent from the Tenant when the Tenant is holding over without
express written consent does not convert Tenant's Tenancy from a tenancy at
sufferance to a month to month tenancy. No waiver of any provision of this Lease
shall be implied by any failure of Landlord to enforce any remedy for the
violation of that provision, even if that violation continues or is repeated.
Any waiver by Landlord of any provision of this Lease must be in writing. Such
waiver shall affect only the provision specified and only for the time and in
the manner stated in the writing. No delay or omission in the exercise of any
right or remedy by Landlord shall impair such right or remedy or be construed as
a waiver thereof by Landlord. No act or conduct of Landlord, including, without
limitation, the acceptance of keys to the Premises, shall constitute acceptance
of the surrender of the Premises by Tenant before the Expiration Date. Only
written notice from Landlord to Tenant of acceptance shall constitute such
acceptance of surrender of the Premises. Landlord's consent to or approval of
any act by Tenant which requires Landlord's consent or approvals shall not be
deemed to waive or render unnecessary Landlord's consent to or approval of any
subsequent act by Tenant.

     F. PERFORMANCE BY LANDLORD: If Tenant fails to perform any obligation
required under this Lease or by law or governmental regulation, Landlord in its
sole discretion may, without notice, without waiving any rights or remedies and
without releasing Tenant from its obligations hereunder, perform such
obligation, in which event Tenant shall pay Landlord as additional rent all
reasonable sums paid by Landlord in connection with such substitute performance,
including interest at the Agreed Interest Rate (as defined in Section 19.J)
within ten (10) business days of Landlord's written notice for such payment.

     G. HABITUAL DEFAULT: The provisions of Section 13 notwithstanding, the
Parties agree that if Tenant shall have defaulted in the performance of any (but
not necessarily the same) monetary term or condition of this Lease for three or
more times during any twelve (12) month period during the Lease Term, then such
conduct shall, at the election of the Landlord, represent a separate event of
default which cannot be cured by Tenant ("Habitual Default"). Tenant
acknowledges that the purpose of this provision is to prevent repetitive
defaults by Tenant, which work a hardship upon Landlord and deprive Landlord of
Tenant's timely performance under this Lease.

14.  LANDLORD'S LIABILITY:

    A. LIMITATION ON LANDLORD'S LIABILITY: In the event of Landlord's failure to
perform any of its covenants or agreements under this Lease, Tenant shall give
Landlord written notice of such failure and shall give Landlord thirty (30) days
to cure or commence to cure such failure prior to any claim for breach or
resultant damages, provided, however, that if the nature of the default is such
that it cannot reasonably be cured within the 30-day period, Landlord shall not
be deemed in default if it commences within such period to cure, and thereafter
diligently prosecutes the same to completion. In addition, upon any such failure
by Landlord, Tenant shall give notice by registered or certified mail to any
person or entity with a security interest in the Premises ("Mortgagee") that has
provided Tenant with notice of its interest in the Premises, and shall provide
Mortgagee a reasonable opportunity to cure such failure, including such time to
obtain possession of the Premises by power of sale or judicial foreclosure, if
such should prove necessary to effectuate a cure. Tenant agrees that each of the
Mortgagees to whom this Lease has been assigned is an expressed third-party
beneficiary hereof. Tenant waives any right under California Civil Code Section
1950.7 or any other present or future law to the collection of any payment or
deposit from Mortgagee or any purchaser at a foreclosure sale of Mortgagee's
interest unless Mortgagee or such purchaser shall have actually received and not
refunded the applicable payment or deposit. Tenant Further waives any right to
terminate this Lease and to vacate the Premises on Landlord's default under this
Lease. Tenant's

                                    Page 20
<PAGE>

sole remedy on Landlord's default is an action for damages or injunctive or
declaratory relief.

     B. LIMITATION ON TENANT'S RECOURSE: If Landlord is a corporation, trust,
partnership, joint venture, unincorporated association or other form of business
entity, then (i) the obligations of Landlord shall not constitute personal
obligations of the officers, directors, trustees, partners, joint venturers,
members, owners, stockholders, or other principals or representatives except to
the extent of their interest in the Premises. Tenant shall have recourse only to
the interest of Landlord in the Premises or for the satisfaction of the
obligations of Landlord and shall not have recourse to any other assets of
Landlord for the satisfaction of such obligations.

     C. INDEMNIFICATION OF LANDLORD: As a material part of the consideration
rendered to Landlord, Tenant hereby waives all claims against Landlord for
damages to goods, wares and merchandise, and all other personal property in,
upon or about said Premises and for injuries to persons in or about said
Premises, from any cause (except due to the gross negligence or willful
misconduct of Landlord) arising at any time to the fullest extent permitted by
law, and Tenant shall indemnify, defend with counsel reasonably acceptable to
Landlord and hold Landlord, and their shareholders, directors, officers,
trustees, employees, partners, affiliates and agents from any claims,
liabilities, costs or expenses incurred or suffered arising from the use of
occupancy of the Premises or any part of the Project by Tenant or Tenant's
Agents, the acts or omissions of Tenant or Tenant's Agents, Tenant's breach of
this Lease, or any damage or injury to person or property from any cause, except
to the extent caused by the willful misconduct or active negligence of Landlord
or from the failure of Tenant to keep the Premises in good condition and repair
as herein provided, except to the extent due to the gross negligence or willful
misconduct of Landlord. Further, in the event Landlord is made party to any
litigation due to the acts or omission of Tenant and Tenant's Agents, Tenant
will indemnify, defend (with counsel reasonably acceptable to Landlord) and hold
Landlord harmless from any such claim or liability including Landlord's costs
and expenses and reasonable attorney's fees incurred in defending such claims
except to the extent due to the gross negligence or willful misconduct of
Landlord.

15. DESTRUCTION OF PREMISES:

     A. LANDLORD'S OBLIGATION TO RESTORE: In the event of a destruction of the
Premises during the Lease Term Landlord shall repair the same to a similar
condition to that which existed prior to such destruction. Such destruction
shall not annul or void this Lease; however, Tenant shall be entitled to a
proportionate reduction of Base Monthly Rent while repairs are being made, such
proportionate reduction to be based upon the extent to which the repairs
interfere with Tenant's business in the Premises, as reasonably determined by
Landlord and Tenant. In no event shall Landlord be required to replace or
restore Alterations, Tenant Improvements paid for by Tenant from sources other
than the Work Allowance or Tenant's fixtures or personal property. With respect
to a destruction which Landlord is obligated to repair or may elect to repair
under the terms of this Section, Tenant waives the provisions of Section 1932,
and Section 1933, Subdivision 4, of the Civil Code of the State of California,
and any other similarly enacted statute, and the provisions of this Section 15
shall govern in the case of such destruction.

     B. LIMITATIONS ON LANDLORD'S RESTORATION OBLIGATION: Notwithstanding the
provisions of Section 15.A, Landlord shall have no obligation to repair, or
restore the Premises if any of the following occur: (i) if the repairs cannot be
made in one hundred eighty (180) days from the date of receipt of all
governmental approvals necessary under the laws and regulations of State,
Federal, County or Municipal authorities, as reasonably determined by Landlord,
(ii) if the holder of the first deed of trust or mortgage encumbering the
Building elects not to permit the insurance proceeds payable upon damage or
destruction to be used for such repair or restoration (unless Tenant, within 45
days after the casualty, agrees in writing to pay all costs associated with
rebuilding), (iii) the damage or destruction is not fully covered by the
insurance maintained by Landlord (unless Tenant, within 45 days after

                                    Page 21
<PAGE>

the casualty, agrees in writing to contribute any shortfall), (iv) the damage or
destruction occurs in the last eighteen (18) months of the Lease Term unless
Tenant has exercised or promptly exercises an option to extend the Lease Term,
(v) Tenant is in default pursuant to the provisions of Section 13, or (vi)
Tenant has vacated the Premises for more than ninety (90) days without payment
of rent. In any such event Landlord may elect either to complete the repair or
restoration, or terminate this Lease by providing Tenant written notice of its
election within sixty (60) days following the damage or destruction. Tenant
shall also have the right to terminate this Lease in the event of either (i) or
(iv) above, by providing Landlord with written notice of its election to do so
within sixty (60) days following the damage or destruction.

16. CONDEMNATION: If any part of the Premises shall be taken for any public or
quasi-public use, under any statute or by right of eminent domain or private
purchase in lieu thereof, and only a part thereof remains which is susceptible
of occupation hereunder, this Lease shall, as to the part so taken, terminate as
of the day before title vests in the condemnor or purchaser ("Vesting Date") and
Base Monthly Rent payable hereunder shall be adjusted so that Tenant is required
to pay for the remainder of the Lease Term only such portion of Base Monthly
Rent as the value of the part remaining after such taking bears to the value of
the entire Premises prior to such taking. Further, in the event of such partial
taking in excess of 25% of the Premises, either Tenant or Landlord shall have
the option to terminate this Lease as of the Vesting Date. If all of the
Premises or such part thereof be taken so that there does not remain a portion
susceptible for the operation of Tenant's business as such business was
performed in the Premises prior to the Vesting Date, this Lease shall terminate
on the Vesting Date. If part or all of the Premises be taken, all compensation
awarded upon such taking shall go to Landlord, and Tenant shall have no claim
thereto; except Landlord shall cooperate with Tenant, without cost to Landlord,
to recover compensation for damage to or taking of any Alterations, Tenant
Improvements paid for by Tenant, or for Tenant's moving costs. Tenant hereby
waives the provisions of California Code of Civil Procedures Section 1265.130
and any other similarly enacted statue, and the provisions of this Section 16
shall govern in the case of a taking but not Government Code Section 7262 with
respect to those claims which Tenant may pursue by separate action.

17. ASSIGNMENT OR SUBLEASE:

     A. CONSENT BY LANDLORD: Except as specifically provided in Section 17.E,
Tenant may not assign, sublet, hypothecate, or allow a third party to use the
Premises without the express written consent of Landlord which consent shall not
be unreasonably withheld, conditioned or delayed. In the event Tenant desires to
assign this Lease or any interest herein or sublet the Premises or any part
thereof, Tenant shall deliver to Landlord (i) executed counterparts of any
agreement and of all ancillary agreements with the proposed assignee/subtenant,
(ii) current financial statements of the transferee covering the preceding year,
(iii) the nature of the proposed transferee's business to be carried on in the
Premises, (iv) a statement outlining all consideration to be given on account of
the Transfer, and (v) a current financial statement of Tenant. Landlord may
condition its approval of any Transfer on receipt of a certification from both
Tenant and the proposed transferee of all consideration to be paid to Tenant in
connection with such Transfer. At Landlord's request, Tenant shall also provide
additional information reasonably required by Landlord to determine whether it
will consent to the proposed assignment or sublease. Landlord shall have a ten
(10) business day period following receipt of all the foregoing within which to
notify Tenant in writing that Landlord elects to: (i) terminate this Lease in
the event the proposed sublease or assignment is for substantially all of space
in the Premises provided, however, that Landlord

                                    Page 22
<PAGE>

shall not have the right to terminate on any sublease or assignment expiring two
(2) or more years before the Expiration Date; (ii) permit Tenant to assign or
sublet such space to the named assignee/subtenant on the terms and conditions
set forth in the notice; or (iii) refuse consent upon conditions set forth
below. If Landlord should fail to notify Tenant in writing of such election
within the 10 business-day period, Landlord shall be deemed to have elected
option (iii) above. In the event Landlord elects option (i) above, this Lease
shall expire with respect to such part of the Premises on the date upon which
the proposed sublease or transfer was to commence, and from such date forward,
Base Monthly Rent and Tenant's Allocable Share of all other costs and charges
shall be adjusted based upon the proportion that the rentable area of the
Premises remaining bears to the total rentable area of the Building. In the
event Landlord elects option (ii) above, Landlord's written consent to the
proposed assignment or sublease shall not be unreasonably withheld, conditioned
or delayed, provided and upon the condition that: (i) the proposed assignee or
subtenant is engaged in a business that is limited to the use expressly
permitted under this Lease; (ii) the Tenant or the proposed assignee or
subtenant is a company with sufficient financial worth and management ability to
undertake the financial obligation of this Lease and Landlord has been furnished
with reasonable proof thereof; (iii) the proposed assignment or sublease is in
form reasonably satisfactory to Landlord; (iv) the proposed sublease will not
result in there being greater than three (3) subtenants within the Premises at
any time during the Lease Term; (v) Tenant reimburses Landlord on demand for any
costs that may be incurred by Landlord in connection with said assignment or
sublease, including the reasonable costs of making investigations as to the
acceptability of the proposed assignee or subtenant and legal costs incurred in
connection with the granting of any requested consent, said reasonable
out-of-pocket costs not to exceed $2,500.00 in total; and (vi) Tenant shall not
have advertised or publicized in any way the availability of the Premises
without prior notice to Landlord. In the event all or any one of the foregoing
conditions are not satisfied, Landlord shall be considered to have acted
reasonably if it withholds its consent. Failure by Landlord to either consent to
or disapprove a proposed assignment or sublease within the ten (10) business day
time period specified above shall be deemed to be Landlord's approval thereof,
so long as Tenant's request includes the following statement in capitalized and
boldfaced letters: By failing to respond to this request, you will be deemed to
have approved the lease assignment or sublease described herein.

     B. ASSIGNMENT OR SUBLETTING CONSIDERATION: Landlord and Tenant hereby agree
that Landlord shall receive fifty percent (50%) of any rent or other economic
consideration (i) realized by Tenant under any sublease or assignment, or (ii)
realized by any subtenant under any sub-sublease of the Premises, in excess of
(a) the Base Monthly Rent payable hereunder, (b) reasonable subletting and
assignment costs incurred by Tenant including lease commissions, attorneys fees,
costs of demising or otherwise preparing the sublease space for occupancy, and
(c) the unamortized cost of Tenant Improvements initially installed by Tenant
provided such Tenant Improvements are specifically utilized by the subtenant or
assignee. Tenant's obligation to pay over Landlord's portion of the
consideration constitutes an obligation for additional rent hereunder. The above
provisions relating to Landlord's right to terminate the Lease and relating to
the allocation of excess rent are independently negotiated terms of the Lease
which constitute a material inducement for the Landlord to enter into the Lease,
and are agreed by the Parties to be commercially reasonable. No assignment or
subletting by Tenant shall relieve it of any obligation under this Lease. Any
assignment or subletting which conflicts with the provisions hereof shall be
void.

     C. NO RELEASE: Any assignment or sublease shall be made only if and shall
not be effective until the assignee or subtenant shall execute, acknowledge, and
deliver to Landlord an agreement, in form and substance reasonably

                                    Page 23
<PAGE>

satisfactory to Landlord, whereby the assignee or subtenant shall assume all the
obligations of this Lease on the part of Tenant to be performed or observed and
shall be subject to all the covenants, agreements, terms, provisions and
conditions in this Lease. Notwithstanding any such sublease or assignment and
the acceptance of rent by Landlord from any subtenant or assignee, Tenant shall
remain fully liable for the payment of Base Monthly Rent and additional rent
due, and to become due hereunder, for the performance of all the covenants,
agreements, terms, provisions and conditions contained in this Lease on the part
of Tenant to be performed and for all acts and omissions of any licensee,
subtenant, assignee or any other person claiming under or through any subtenant
or assignee that shall be in violation of any of the terms and conditions of
this Lease, and any such violation shall be deemed a violation by Tenant. Tenant
shall indemnify, defend and hold Landlord harmless from and against all losses,
liabilities, damages, costs and expenses (including reasonable attorney fees)
resulting from any claims that may be made against Landlord by the proposed
assignee or subtenant or by any real estate brokers or other persons claiming
compensation in connection with the proposed assignment or sublease.

     D. REORGANIZATION OF TENANT: The provisions of this Section 17.D shall
apply if Tenant is a corporation and: (i) there is a dissolution, merger,
consolidation, or other reorganization of or affecting Tenant, where Tenant is
not the surviving corporation, or (ii) there is a sale or transfer to one person
or entity (or to any group of related persons or entities) of stock possessing
more than 50% of the total combined voting power of all classes of Tenant's
capital stock issued, outstanding and entitled to vote for the election of
directors, and after such sale or transfer of stock Tenant's stock is no longer
publicly traded. In a transaction under clause (i) the surviving corporation
shall promptly execute and deliver to Landlord an agreement in form reasonably
satisfactory to Landlord under which such surviving corporation assumes the
obligations of Tenant hereunder, and in a transaction under clause (ii) the
transferee or buyer shall promptly execute and deliver to Landlord an agreement
in form reasonably satisfactory to Landlord under which such transferee or buyer
assumes the obligations of Tenant under the Lease.

     E. PERMITTED TRANSFERS: Notwithstanding anything contained in this Section
17, so long as Tenant otherwise complies with the provisions of this Article,
Tenant may enter into any of the following transfers (a "Permitted Transfer")
without Landlord's prior consent, and Landlord shall not be entitled to
terminate the Lease or to receive any part of any subrent resulting therefrom
that would otherwise be due pursuant to Sections 17.A and 17.B. Tenant may
sublease all or part of the Premises or assign its interest in this Lease to (i)
any corporation which controls, is controlled by, or is under common control
with the original Tenant to this Lease by means of an ownership interest of more
than 50%; (ii) a corporation which results from a merger, consolidation or other
reorganization in which Tenant is not the surviving corporation, so long as the
surviving corporation has a net worth at the time of such assignment that is
equal to or greater than the net worth of Tenant immediately prior to such
transaction; and (iii) a corporation which purchases or otherwise acquires all
or substantially all of the assets of Tenant so long as such acquiring
corporation has a net worth at the time of such assignment that is equal to or
greater than the net worth of Tenant immediately prior to such transaction.

     F. EFFECT OF DEFAULT: In the event of Tenant's default, Tenant hereby
assigns all rents due from any assignment or subletting to Landlord as security
for performance of its obligations under this Lease, and Landlord may collect
such rents as Tenant's Attorney-in-Fact, except that Tenant may collect such
rents unless a default occurs as described in Section 13 above. A termination if
the Lease due to Tenant's default shall not automatically terminate an
assignment or sublease then in existence; rather at Landlord's election, such
assignment or sublease shall survive the Lease termination, the assignee or
subtenant shall

                                    Page 24
<PAGE>

attorn to Landlord, and Landlord shall undertake the obligations of Tenant under
the sublease or assignment; except that Landlord shall not be liable for prepaid
rent, security deposits or other defaults of Tenant to the subtenant or
assignee, or for any acts or omissions of Tenant and Tenant's Agents.

     G. CONVEYANCE BY LANDLORD: As used in this Lease, the term "Landlord" is
defined only as the owner for the time being of the Premises, so that in the
event of any sale or other conveyance of the Premises or in the event of a
master lease of the Premises, Landlord shall be entirely freed and relieved of
all its covenants and obligations hereunder, and it shall be deemed and
construed, without further agreement between the Parties and the purchaser at
any such sale or the master tenant of the Premises, that the purchaser or master
tenant of the Premises has assumed and agreed to carry out any and all covenants
and obligations of Landlord hereunder. Such transferor shall transfer and
deliver Tenant's security deposit to the purchaser at any such sale or the
master tenant of the Premises, and thereupon the transferor shall be discharged
from any further liability in reference thereto.

     H. SUCCESSORS AND ASSIGNS: Subject to the provisions this Section 17, the
covenants and conditions of this Lease shall apply to and bind the heirs,
successors, executors, administrators and assigns of all Parties hereto; and all
Parties hereto comprising Tenant shall be jointly and severally liable
hereunder.

     I. CUSTOMER EQUIPMENT: Landlord acknowledges that Tenant's business in the
Premises may require the installation of certain communications equipment by
certain licensees and customers of Tenant (collectively, "Customers") in order
for such Customers to interconnect with Tenant's equipment in the Premises or to
permit Tenant to manage or operate such Customers' equipment, and so long as
such Customers are not granted possessory rights to any portion of the Premises
(whether as assignees, sublessees, licensees, or in any other capacity), these
contracts with the Customers shall not require Landlord's consent, and these
Customer contracts do hereby have the Landlord's consent at no consideration to
Landlord for the limited purpose of permitting the services and uses described
above and so long as Tenant causes such Customers to comply, and all such
services and uses are conducted in a manner in compliance with, all of the terms
and conditions of this Lease.

18.  OPTION TO EXTEND THE LEASE TERM:

     A. GRANT AND EXERCISE OF OPTION: Landlord grants to Tenant, subject to the
terms and conditions set forth in this Section 18.A, two (2) options (the
"Options") to extend the Lease Term for an additional term (the "Option Term").
Each Option Term shall be for a period of sixty (60) months and shall be
exercised, if at all, by written notice to Landlord no earlier than fifteen (15)
months prior to the date the Lease Term would expire but for such exercise but
no later than nine (9) months prior to the date the Lease Term would expire but
for such exercise, time being of the essence for the giving of such notice. If
Tenant exercises the Option, all of the terms, covenants and conditions of this
Lease except for the grant of additional Options pursuant to this Section,
provided that Base Monthly Rent for the Premises payable by Tenant during the
Option Term shall be the greater of (i) the Base Monthly Rent applicable to the
period immediately prior to the commencement of the Option Term, and (ii) ninety
five percent (95%) of the Fair Market Rental as hereinafter defined.
Notwithstanding anything herein to the contrary, if Tenant is in monetary or
material non-monetary default under any of the terms, covenants or conditions of
this Lease (beyond applicable notice and cure periods) either at the time Tenant
exercises the Option or at any time thereafter prior to the commencement date of
the Option Term, then Landlord shall have, in addition to all of Landlord's
other rights and remedies provided in this Lease, the right to terminate the
Option upon notice to Tenant, in which event the Lease Term shall not be
extended pursuant to this Section 18.A. As used herein, the term "Fair Market
Rental" is defined as the rental and all

                                    Page 25
<PAGE>

other monetary payments, including any escalations and adjustments thereto
(including without limitation Consumer Price Indexing) that Landlord could
obtain during the Option Term from a third party desiring to lease the Premises,
based upon the current use and other potential uses of the Premises, as
determined by the rents then being obtained for new leases of space comparable
in age and quality to the Premises in the same real estate submarket as the
Building. The appraisers shall be instructed that the foregoing five percent
(5%) discount is intended to offset comparable rents that include the following
costs which Landlord will not incur in the event Tenant exercises its option (i)
brokerage commissions, (ii) tenant improvement allowances, (iii) building
improvement costs, and (iv) vacancy costs.

     B. DETERMINATION OF FAIR MARKET RENTAL: If Tenant exercises the Option,
Landlord shall send Tenant a notice setting forth the Fair Market Rental for the
Option Term within thirty (30) days following the Exercise Date. If Tenant
disputes Landlord's determination of Fair Market Rental for the Option Term,
Tenant shall, within thirty (30) days after the date of Landlord's notice
setting forth Fair Market Rental for the Option Term, send to Landlord a notice
stating that Tenant either elects to terminate its exercise of the Option, in
which event the Option shall lapse and this Lease shall terminate on the
Expiration Date, or that Tenant disagrees with Landlord's determination of Fair
Market Rental for the Option Term and elects to resolve the disagreement as
provided in Section 18.C below. If Tenant does not send Landlord a notice as
provided in the previous sentence, Landlord's determination of Fair Market
Rental shall be the Base Monthly Rent payable by Tenant during the Option Term.
If Tenant elects to resolve the disagreement as provided in Section 18.C and
such procedures are not concluded prior to the commencement date of the Option
Term, Tenant shall pay to Landlord as Base Monthly Rent the Fair Market Rental
as determined by Landlord in the manner provided above. If the Fair Market
Rental as finally determined pursuant to Section 18.C is greater than Landlord's
determination, Tenant shall pay Landlord the difference between the amount paid
by Tenant and the Fair Market Rental as so determined in Section 18.C within
thirty (30) days after such determination. If the Fair Market Rental as finally
determined in Section 18.C is less than Landlord's determination, the difference
between the amount paid by Tenant and the Fair Market Rental as so determined in
Section 18.C shall be credited against the next installments of Base Monthly
Rent due from Tenant to Landlord hereunder.

     C. RESOLUTION OF A DISAGREEMENT OVER THE FAIR MARKET RENTAL: Any
disagreement regarding Fair Market Rental shall be resolved as follows:

          1. Within thirty (30) days after Tenant's response to Landlord's
notice setting forth the Fair Market Rental, Landlord and Tenant shall meet at a
mutually agreeable time and place, in an attempt to resolve the disagreement.

          2. If within the 30-day period referred to above, Landlord and Tenant
cannot reach agreement as to Fair Market Rental, each party shall select one
appraiser to determine Fair Market Rental. Each such appraiser shall arrive at a
determination of Fair Market Rental and submit their conclusions to Landlord and
Tenant within thirty (30) days after the expiration of the 30-day consultation
period described above.

          3. If only one appraisal is submitted within the requisite time
period, it shall be deemed as Fair Market Rental. If both appraisals are
submitted within such time period and the two appraisals so submitted differ by
less than ten percent (10%), the average of the two shall be deemed as Fair
Market Rental. If the two appraisals differ by more than 10%, the appraisers
shall immediately select a third appraiser who shall, within thirty (30) days
after his selection, make and submit to Landlord and Tenant a determination of
Fair Market Rental. This third appraisal will then be averaged with the closer
of the two previous

                                    Page 26
<PAGE>

appraisals and the result shall be Fair Market Rental.

          4. All appraisers specified pursuant to this Section shall be members
of the American Institute of Real Estate Appraisers with not less than ten (10)
years experience appraising office and industrial properties in the Santa Clara
Valley. Each party shall pay the cost of the appraiser selected by such party
and one-half of the cost of the third appraiser.

     D. PERSONAL TO TENANT: All Options provided to Tenant in this Lease are
personal and granted to Broadcom Corporation (and any surviving corporation,
transferee or buyer pursuant to Section 17.D. above; or any permitted transferee
pursuant to Section 17.E. above) and are not exercisable by any third party
should Tenant assign or sublet all or a portion of its rights under this Lease,
unless Landlord consents to permit exercise of any option by any assignee or
subtenant, in Landlord's sole and absolute discretion. In the event Tenant has
multiple options to extend this Lease, a later option to extend the Lease cannot
be exercised unless the prior option has been properly exercised.

19.  GENERAL PROVISIONS:

     A. ATTORNEY'S FEES: In the event a suit or alternative form of dispute
resolution is brought for the possession of the Premises, for the recovery of
any sum due hereunder, to interpret the Lease, or because of the breach of any
other covenant herein; then the losing party shall pay to the prevailing party
reasonable attorney's fees including the expense of expert witnesses,
depositions and court testimony as part of its costs which shall be deemed to
have accrued on the commencement of such action. The prevailing party shall also
be entitled to recover all costs and expenses including reasonable attorney's
fees incurred in enforcing any judgment or award against the other party. The
foregoing provision relating to post-judgment costs is severable from all other
provisions of this Lease.

     B. AUTHORITY OF PARTIES: Tenant represents and warrants that it is duly
formed and in good standing, and is duly authorized to execute and deliver this
Lease on behalf of said corporation, in accordance with a duly adopted
resolution of the Board of Directors of said corporation or in accordance with
the by-laws of said corporation, and that this Lease is binding upon said
corporation in accordance with its terms. At Landlord's request, Tenant shall
provide Landlord with corporate resolutions or other proof in a form acceptable
to Landlord, authorizing the execution of the Lease.

     C. BROKERS: Tenant represents it has not utilized or contacted a real
estate broker or finder with respect to this Lease other than Real Estate &
Logistics Technology, Inc. ("Broker") and Tenant agrees to indemnify, defend and
hold Landlord harmless against any claim, cost, liability or cause of action
asserted by any other broker or finder claiming through Tenant. Landlord shall
pay Broker a real estate commission equal to $751,894.00, payable one half upon
Landlord's receipt of the executed Lease and a check from Tenant for prepaid
Base Monthly Rent for the first month of the Lease, and the remaining half upon
the Commencement Date of the Lease.

     D. CHOICE OF LAW: This Lease shall be governed by and construed in
accordance with California law. Except as provided in Section 19.E, venue shall
be Santa Clara County.

     E. DISPUTE RESOLUTION: Landlord and Tenant and any other party that may
become a party to this Lease or be deemed a party to this Lease including any
subtenants agree that, except for any claim by Landlord for unlawful detainer or
any claim within the jurisdiction of the small claims court (which small claims
court shall be the sole court of competent jurisdiction), any controversy,
dispute, or claim of whatever nature arising out of, in connection with or in
relation to the interpretation, performance or breach of this Lease, including
any claim based on contract, tort, or statute, shall be resolved at the request
of any party to this agreement through a two-step dispute resolution process

                                    Page 27
<PAGE>

administered by J.A.M.S. or another judicial mediation service mutually
acceptable to the parties located in Santa Clara County, California. The dispute
resolution process shall involve first, mediation, followed, if necessary, by
final and binding arbitration administered by and in accordance with the then
existing rules and practices of J.A.M.S. or other judicial mediation service
selected. In the event of any dispute subject to this provision, either party
may initiate a request for mediation and the parties shall use reasonable
efforts to promptly select a J.A.M.S. mediator and commence the mediation. In
the event the parties are not able to agree on a mediator within thirty (30)
days, J. A. M. S. or another judicial mediation service mutually acceptable to
the parties shall appoint a mediator. The mediation shall be confidential and in
accordance with California Evidence Code Section 1119 et. seq. The mediation
shall be held in Santa Clara County, California and in accordance with the
existing rules and practice of J. A. M. S. (or other judicial and mediation
service selected). The parties shall use reasonable efforts to conclude the
mediation within sixty (60) days of the date of either party's request for
mediation. The mediation shall be held prior to any arbitration or court action
(other than a claim by Landlord for unlawful detainer or any claim within the
jurisdiction of the small claims court which are not subject to this
mediation/arbitration provision and may be filed directly with a court of
competent jurisdiction). Should the prevailing party in any dispute subject to
this Section 19.E attempt an arbitration or a court action before attempting to
mediate, the prevailing party shall not be entitled to attorney's fees that
might otherwise be available to them in a court action or arbitration and in
addition thereto, the party who is determined by the arbitrator to have resisted
mediation, shall be sanctioned by the arbitrator or judge.

If a mediation is conducted but is unsuccessful, it shall be followed by final
and binding arbitration administered by and in accordance with the then existing
rules and practices of J.A.M.S. or the other judicial and mediation service
selected, and judgment upon any award rendered by the arbitrator(s) may be
entered by any state or Federal court having jurisdiction thereof AS PROVIDED BY
CALIFORNIA CODE OF CIVIL PROCEDURE SECTION 1280 ET. SEQ, AS SAID STATUTES THEN
APPEAR, INCLUDING ANY AMENDMENTS TO SAID STATUTES OR SUCCESSORS TO SAID STATUTES
OR AMENDED STATUTES, EXCEPT THAT in no event shall the parties be entitled to
propound interrogatories or request for admissions during the arbitration
process. The arbitrator shall be a retired judge or a licensed California
attorney. The venue for any such arbitration or mediation shall be in Santa
Clara County, California.

NOTICE: BY INITIALING IN THE SPACE BELOW YOU ARE AGREEING TO HAVE ANY DISPUTE
ARISING OUT OF THE MATTERS INCLUDED IN THE "MEDIATION AND ARBITRATION OF
DISPUTES" PROVISION DECIDED BY NEUTRAL ARBITRATION AS PROVIDED BY CALIFORNIA LAW
AND YOU ARE GIVING UP ANY RIGHTS YOU MIGHT POSSESS TO HAVE THE DISPUTE LITIGATED
IN A COURT OR JURY TRIAL. BY INITIALING IN THE SPACE BELOW YOU ARE GIVING UP
YOUR JUDICIAL RIGHTS TO DISCOVERY AND APPEAL, UNLESS THOSE RIGHTS ARE
SPECIFICALLY INCLUDED IN THE "MEDIATION AND ARBITRATION OF DISPUTES" PROVISION.
IF YOU REFUSE TO SUBMIT TO ARBITRATION AFTER AGREEING TO THIS PROVISION, YOU MAY
BE COMPELLED TO ARBITRATE UNDER THE AUTHORITY OF THE CALIFORNIA CODE OF CIVIL
PROCEDURE. YOUR AGREEMENT TO THIS ARBITRATION PROVISION IS VOLUNTARY.

WE HAVE READ AND UNDERSTAND THE FOREGOING AND AGREE TO SUBMIT DISPUTES ARISING
OUT OF THE MATTERS INCLUDED IN THE "MEDIATION AND

                                    Page 28
<PAGE>

ARBITRATION OF DISPUTES" PROVISION TO NEUTRAL ARBITRATION.

LANDLORD: ______ TENANT: _______

     F. ENTIRE AGREEMENT: This Lease and the exhibits attached hereto contains
all of the agreements and conditions made between the Parties hereto and may not
be modified orally or in any other manner other than by written agreement signed
by all parties hereto or their respective successors in interest. This Lease
supersedes and revokes all previous negotiations, letters of intent, lease
proposals, brochures, agreements, representations, promises, warranties, and
understandings, whether oral or in writing, between the parties or their
respective representatives or any other person purporting to represent Landlord
or Tenant.

     G. ENTRY BY LANDLORD: Upon at least 24 hours' notice to Tenant (except in
case of emergency when no prior notice shall be required) and subject to
Tenant's reasonable security regulations, Tenant shall permit Landlord and his
agents to enter into and upon the Premises at all reasonable times, and without
any rent abatement or reduction or any liability to Tenant for any loss of
occupation or quiet enjoyment of the Premises thereby occasioned, for the
following purposes: (i) inspecting and maintaining the Premises; (ii) making
repairs, alterations or additions to the Premises; (iii) erecting additional
building(s) and improvements on the land where the Premises are situated or on
adjacent land owned by Landlord; provided that Tenant's use of and access to the
Premises are not materially adversely affected; (iv) performing any obligations
of Landlord under this Lease including remediation of Hazardous Materials if
determined to be the responsibility of Landlord, (v) posting and keeping posted
thereon notices of non-responsibility for any construction, alteration or repair
thereof, as required or permitted by any law, and (vi) showing the Premises to
Landlord's or the Master Landlord's existing or potential successors, purchaser,
tenants and lenders. Tenant shall permit Landlord and his agents, at any time
within one hundred eighty (180) days prior to the Expiration Date (or at any
time during the Lease if Tenant is in default hereunder), to place upon the
Premises "For Lease" signs and exhibit the Premises to real estate brokers and
prospective tenants at reasonable hours.

     H. ESTOPPEL CERTIFICATES: At any time during the Lease Term, Tenant shall,
within ten (10) business days following written notice from Landlord, execute
and deliver to Landlord a written statement certifying, if true, the following:
(i) that this Lease is unmodified and in full force and effect (or, if modified,
stating the nature of such modification); (ii) the date to which rent and other
charges are paid in advance, if any; (iii) acknowledging that there are not, to
Tenant's knowledge, any uncured defaults on Landlord's part hereunder (or
specifying such defaults if they are claimed); and (iv) such other information
as Landlord may reasonably request. Any such statement may be conclusively
relied upon by any prospective purchaser or encumbrancer of Landlord's interest
in the Premises. Tenant's failure to deliver such statement within such time
shall be conclusive upon the Tenant that this Lease is in full force and effect
without modification, except as may be represented by Landlord, and that there
are no uncured defaults in Landlord's performance. Tenant agrees to provide,
within five (5) business days of Landlord's request, Tenant's most recent three
(3) years of audited financial statements for Landlord's use in financing or
sale of the Premises or Landlord's interest therein.

     I. EXHIBITS: All exhibits referred to are attached to this Lease and
incorporated by reference.

     J. INTEREST: All rent due hereunder, if not paid when due, shall bear
interest at the rate of the Reference Rate published by Bank of America, San
Francisco Branch, plus two percent (2%) per annum from that date until paid in
full ("Agreed Interest Rate"). This provision shall survive the expiration or
sooner termination of the Lease. Despite any other

                                    Page 29
<PAGE>

provision of this Lease, the total liability for interest payments shall not
exceed the limits, if any, imposed by the usury laws of the State of California.
Any interest paid in excess of those limits shall be refunded to Tenant by
application of the amount of excess interest paid against any sums outstanding
in any order that Landlord requires. If the amount of excess interest paid
exceeds the sums outstanding, the portion exceeding those sums shall be refunded
in cash to Tenant by Landlord. To ascertain whether any interest payable exceeds
the limits imposed, any non-principal payment (including late charges) shall be
considered to the extent permitted by law to be an expense or a fee, premium, or
penalty rather than interest.

     K. MODIFICATIONS REQUIRED BY LENDER: If any lender of Landlord or ground
lessor of the Premises requires a modification of this Lease that will not
increase Tenant's cost or expense or materially or adversely change Tenant's
rights and obligations, this Lease shall be so modified and Tenant shall execute
whatever documents are required and deliver them to Landlord within ten (10)
days after the request.

     L. NO PRESUMPTION AGAINST DRAFTER: Landlord and Tenant understand, agree
and acknowledge that this Lease has been freely negotiated by both Parties; and
that in any controversy, dispute, or contest over the meaning, interpretation,
validity, or enforceability of this Lease or any of its terms or conditions,
there shall be no inference, presumption, or conclusion drawn whatsoever against
either party by virtue of that party having drafted this Lease or any portion
thereof.

     M. NOTICES: All notices, demands, requests, or consents required to be
given under this Lease shall be sent in writing by U.S. certified mail, return
receipt requested by a reputable overnight service such as FedEx at the address
for such party specified in Section 1 of this Lease (and when sending to Tenant,
marked Attn: Director of Corporate Services), or to such other place as the
party to be notified may from time to time designate by at least fifteen (15)
days prior notice to the notifying party. Any notice received on Saturday,
Sunday or legal holiday shall be deemed received on the next business day.
Copies of all default notices shall be sent concurrently to Brobeck, Phleger &
Harrison LLP, 12390 El Camino Real, San Diego, CA 92130; Attn: W. Scott Biel,
Esq. When this Lease requires service of a notice, that notice shall replace
rather than supplement any equivalent or similar statutory notice, including any
notices required by Code of Civil Procedure Section 1161 or any similar or
successor statute. When a statute requires service of a notice in a particular
manner, service of that notice (or a similar notice required by this Lease)
shall replace and satisfy the statutory service-of-notice procedures, including
those required by Code of Civil Procedure Section 1162 or any similar or
successor statute.

     N. PROPERTY MANAGEMENT: Tenant agrees to pay Landlord along with the
expenses to be reimbursed by Tenant a monthly fee for management services
rendered by either Landlord or a third party manager engaged by Landlord (which
may be a party affiliated with Landlord), in the amount of three percent (3%) of
the Base Monthly Rent.

     O. RENT: All monetary sums due from Tenant to Landlord under this Lease,
including, without limitation those referred to as "additional rent", shall be
deemed as rent.

     P. REPRESENTATIONS: Tenant acknowledges that neither Landlord nor any of
its employees or agents have made any agreements, representations, warranties or
promises with respect to the Premises or with respect to present or future
rents, expenses, operations, tenancies or any other matter. Except as herein
expressly set forth herein, Tenant relied on no statement of Landlord or its
employees or agents for that purpose.

     Q. RIGHTS AND REMEDIES: Subject to Section 14 above, All rights and
remedies hereunder are cumulative and not alternative to the extent permitted by
law, and are in addition to all other rights and remedies in law and in equity.

                                    Page 30
<PAGE>

     R. SEVERABILITY: If any term or provision of this Lease is held
unenforceable or invalid by a court of competent jurisdiction, the remainder of
the Lease shall not be invalidated thereby but shall be enforceable in
accordance with its terms, omitting the invalid or unenforceable term.

     S. SUBMISSION OF LEASE: Submission of this document for examination or
signature by the parties does not constitute an option or offer to lease the
Premises on the terms in this document or a reservation of the Premises in favor
of Tenant. This document is not effective as a lease or otherwise until executed
and delivered by both Landlord and Tenant.

     T. SUBORDINATION: This Lease is subject and subordinate to ground and
underlying leases, mortgages and deeds of trust (collectively "Encumbrances")
which may now affect the Premises, to any covenants, conditions or restrictions
of record, and to all renewals, modifications, consolidations, replacements and
extensions thereof; provided, however, if the holder or holders of any such
Encumbrance ("Holder") require that this Lease be prior and superior thereto,
within ten (10) business days after written request of Landlord to Tenant,
Tenant shall execute, have acknowledged and deliver all documents or
instruments, in the form presented to Tenant (provided such form is commercially
reasonable), which Landlord or Holder deems necessary or desirable for such
purposes. Landlord shall have the right to cause this Lease to be and become and
remain subject and subordinate to any and all Encumbrances which are now or may
hereafter be executed covering the Premises or any renewals, modifications,
consolidations, replacements or extensions thereof, for the full amount of all
advances made or to be made thereunder and without regard to the time or
character of such advances, together with interest thereon and subject to all
the terms and provisions thereof; provided only, that in the event of
termination of any such lease or upon the foreclosure of any such mortgage or
deed of trust, Holder agrees to recognize Tenant's rights under this Lease as
long as Tenant is not then in default and continues to pay Base Monthly Rent and
additional rent and observes and performs all required provisions of this Lease.
Within thirty (30) days after Landlord's written request, Tenant shall execute
any documents required by Landlord or the Holder to make this Lease subordinate
to any lien of the Encumbrance. If Tenant fails to do so, then in addition to
such failure constituting a default by Tenant, it shall be deemed that this
Lease is so subordinated to such Encumbrance. Notwithstanding anything to the
contrary in this Section, Tenant hereby attorns and agrees to attorn to any
entity purchasing or otherwise acquiring the Premises at any sale or other
proceeding or pursuant to the exercise of any other rights, powers or remedies
under such encumbrance.

Landlord shall use its best efforts to obtain and deliver to Tenant as soon as
reasonably possible following the Effective Date written nondisturbance
agreements ("Nondisturbance Agreements") from all lessors under all ground
leases or underlying leases, from all beneficiaries under all deeds of trust and
all mortgagees under all mortgages affecting the Premises, stating that so long
as no event of default has occurred, this Lease and all of the terms,
provisions, and conditions of this Lease, shall remain in full force and effect,
and neither this Lease, nor Tenant's rights nor Tenant's possession of the
Premises will be disturbed during the Term of this Lease or any extension
thereof.

     U. SURVIVAL OF INDEMNITIES: All indemnification, defense, and hold harmless
obligations of Landlord and Tenant under this Lease shall survive the expiration
or sooner termination of the Lease.

     V. TIME: Time is of the essence hereunder.

     W. TRANSPORTATION DEMAND MANAGEMENT PROGRAMS: Should a government agency or
municipality require Landlord to institute TDM (Transportation Demand
Management) facilities and/or programs, Tenant agrees that the cost of

                                    Page 31
<PAGE>

TDM imposed facilities and programs required on the Premises, including but not
limited to employee showers, lockers, cafeteria, or lunchroom facilities, shall
be paid by Tenant. Further, any ongoing costs or expenses associated with a TDM
program which are required for the Premises and not provided by Tenant, such as
an on-site TDM coordinator, shall be provided by Landlord with such costs being
included as additional rent and reimbursed to Landlord by Tenant within thirty
(30) days after demand. If TDM facilities and programs are instituted on a
Project wide basis, Tenant shall pay its proportionate share of such costs in
accordance with Section 8 above.

     X. WAIVER OF RIGHT TO JURY TRIAL: Landlord and Tenant waive their
respective rights to trial by jury of any contract or tort claim, counterclaim,
cross-complaint, or cause of action in any action, proceeding, or hearing
brought by either party against the other on any matter arising out of or in any
way connected with this Lease, the relationship of Landlord and Tenant, or
Tenant's use or occupancy of the Premises, including any claim of injury or
damage or the enforcement of any remedy under any current or future law,
statute, regulation, code, or ordinance.

20.  RIGHT OF FIRST OFFER:

     A. GRANT: Subject to the existing rights of any third parties and provided
Tenant concurrently exercises it right of first offering as described below on
all three buildings as a group, Landlord hereby grants Tenant a right of first
offering to lease the adjacent buildings at 2421, 2431 and 2441 Mission College
Boulevard ("Expansion Buildings") totaling 282,649 square feet as highlighted in
green on Exhibit "A"; provided that if Landlord intends to offer less than all
of the Expansion Buildings to any third party, Tenant shall have similar rights
with respect to such lesser additional premises to be so offered. Prior to
Landlord offering to lease the Expansion Buildings to a third party (other than
the third parties with existing rights), Landlord shall give Tenant written
notice of such desire and the terms and other information under which Landlord
intends to lease the Expansion Buildings. Provided at the time of exercise, (i)
Tenant is not in default and (ii) Tenant's then current net worth (as evidenced
by its most recent financial statements) is at least equal to its net worth at
the time of execution of this Lease, Tenant shall have the option, which must be
exercised, if at all, by written notice to Landlord within ten (10) days after
Tenant's receipt of Landlord's notice, to lease the Expansion Buildings at the
rent and terms of lease specified in the notice. In the event Tenant timely
exercises such option to lease the Expansion Buildings, Landlord shall lease the
Expansion Buildings to Tenant, and Tenant shall lease the Expansion Buildings
from Landlord in accordance with the rent and terms specified in Landlord's
notice. Landlord and Tenant shall, in good faith, attempt to reach agreement on
the terms of a mutually acceptable lease agreement consistent with the terms set
forth in Landlord's notice and otherwise on the terms of this Lease within
fifteen (15) business days of Landlord's notice. In the event (i) Landlord and
Tenant are unable to reach agreement on a mutually acceptable lease within such
15 business-day period or (ii) Tenant fails to exercise Tenant's option within
said ten (10) day period, Landlord shall have one hundred eighty (180) days
thereafter to lease the Expansion Buildings at no less than ninety percent (90%)
of the rental rate and upon the same or substantially the same other terms of
lease as specified in the notice to Tenant. In the event Landlord fails to lease
the Expansion Buildings within said one hundred eighty (180) day period or in
the event Landlord proposes to lease the Expansion Buildings at less than ninety
percent (90%) of the rental rate or on other material terms which are more
favorable to the prospective tenant than that proposed to Tenant, Landlord shall
be required to resubmit such offer to Tenant in accordance with this Right of
First Offering.

     B. EXCLUSIONS: Notwithstanding the foregoing, this Right of First Offering
shall automatically terminate, (i) upon the expiration or sooner termination of
the Lease, or (ii) in the event that Landlord transfers its interest in the
Premises or in the Expansion Buildings.

                                    Page 32
<PAGE>

21. NORTEL SUBLEASE: Within thirty (30) days of the Effective Date, Tenant
agrees to enter into a mutually agreeable sublease with Nortel Networks for 310
square feet of the Premises as shown on the attached Exhibit "D".

                                    Page 33
<PAGE>

IN WITNESS WHEREOF, Landlord and Tenant have executed this Lease on the day and
year first above written.

LANDLORD: Sobrato Interests,                 TENANT: Broadcom Corporation,
a California Limited Partnership        a California Corporation

By:  /s/ JOHN M. SOBRATO                * By:  /s/ WILLIAM J. RUEHLE
   ----------------------------------        -----------------------------------

Its: General Partner                    Its:   Vice President
    ---------------------------------       ------------------------------------

                                        * By:  /s/ WILLIAM J. RUEHLE
                                              ----------------------------------

                                        Its:   Chief Financial Officer
                                             -----------------------------------

* NOTE: This lease must be signed by two (2) officers of such corporation: one
being the chairman of the board, the president, or a vice president, and the
other being the secretary, an assistant secretary, the chief financial officer
or an assistant treasurer. If one (1) individual is signing in two (2) of the
foregoing capacities, that individual must sign twice; once as one officer and
again as the other officer and in such event, Tenant must deliver to Landlord a
certified copy of a corporate resolution authorizing the signatory to execute
this Lease.

                                    Page 34
<PAGE>

                   EXHIBIT "A" - PREMISES, BUILDING & PROJECT

                                    Page 35
<PAGE>

                      EXHIBIT "B" - DRAFT LETTER OF CREDIT

                                    Page 36
<PAGE>

                     EXHIBIT "C" - THERMA MECHANICAL REPORT

                                    Page 37
<PAGE>

                       EXHIBIT "D" - NORTEL SUBLEASE SPACE

                                    Page 38
<PAGE>

                           SECOND AMENDMENT TO LEASE

     This SECOND AMENDMENT TO LEASE ("Second Amendment") is made as of March
30, 2001, by and between Sobrato Interests, a California limited partnership
("Landlord"), and Broadcom Corporation, a California corporation ("Tenant").

                                    RECITALS

     WHEREAS, Landlord and Tenant entered into that certain Lease dated
November 20, 2000 ("Lease") relating to certain premises located at 2451-2465
Mission College Boulevard, Santa Clara, California ("Premises"), as more fully
described in the Lease; and

     WHEREAS, Landlord and Tenant desire to amend the Lease in accordance with
the terms and provisions hereof.

                                   AGREEMENT

     NOW, THEREFORE, in consideration of the mutual covenants set forth below,
and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, Landlord and Tenant hereby agree as follows:

1.  All capitalized terms not specifically defined in this Second Amendment
    shall have the meanings set forth in the Lease.

2.  The first sentence of Section 4.A of the Lease is hereby deleted and the
    following is substituted therefor: "The term ("Lease Term") shall be for
    ninety-six (96) months, commencing on July 1, 2001 (the "Commencement Date")
    and ending on June 30, 2009 ("Expiration Date")."

3.  The schedule of Base Monthly Rent as set forth in Section 4.A of the
    Lease is hereby deleted and the following is substituted therefor:

<TABLE>
<S>               <C>                        <C>
Months 01-12:     $768,925 per month         $5.62 psf
Months 13-24:     $799,000.76 per month      $5.84 psf
Months 25-36:     $830,443.60 per month      $6.07 psf
Months 37-48:     $863,253.52 per month      $6.31 psf
Months 49-60:     $896,063.44 per month      $6.55 psf
Months 61-72:     $931,607.52 per month      $6.81 psf
Months 73-84:     $968,518.68 per month      $7.08 psf
Months 85-96:     $1,006,796.92 per month    $7.36 psf
</TABLE>

4.  The first sentence of Section 4.C of the Lease is hereby deleted and the
    following is substituted therefor: "On or prior to May 1, 2001, Tenant
    shall deposit with Landlord the sum of Three Million One Hundred Thousand
    and No/100 Dollars ($3,100,000.00) ("Security Deposit")."
<PAGE>

5.   The sixth sentence of Section 4.C of the Lease, which currently reads "If
     Tenant shall default more than three (3) times in any twelve (12) month
     period, irrespective of whether or not such default is cured, then the
     Security Deposit shall, within ten (10) days after demand by Landlord, be
     increased by Tenant to an amount equal to three (3) times the Base Monthly
     Rent" is hereby deleted.

6.   The last full paragraph of Section 4.C of the Lease, regarding Tenant's
     right to deposit a Letter of Credit in lieu of a cash Security Deposit, is
     hereby deleted in its entirety.

7.   Except as amended in this Second Amendment, all of the terms and provisions
     of the Lease remain unchanged and in full force and effect.

8.   This Second amendment may be executed in any number of counterparts, each
     of which shall be deemed an original and all of which taken together shall
     constitute a single instrument.

          IN WITNESS WHEREOF, the parties hereto have caused this Second
Amendment to be executed as of the day and year first above written.

LANDLORD:                                  TENANT:

SOBRATO INTERESTS,                         BROADCOM CORPORATION,
a California limited partnership           a California corporation

By: /s/ JOHN M. SOBRATO                    By: /s/ WILLIAM J. RUEHLE
    ----------------------------               ---------------------------
Name: John M. Sobrato                      Title: Vice President
      --------------------------                  ------------------------
Title: General Partner                     By: /s/ WILLIAM J. RUEHLE
       -------------------------               ---------------------------
                                           Title: Chief Financial Officer
                                                  ------------------------

                                       2<PAGE>
                                                                   EXHIBIT 10.19

                                                                       EXECUTION
                                                                       COPY

================================================================================

                                Credit Agreement

                                     between

                              Broadcom Corporation

                                       and

                              Bank of America, N.A.

                          Dated as of December 21, 2001

================================================================================

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
Section                                                                                    Page
-------                                                                                    ----
<S>     <C>                                                                                 <C>
SECTION 1. DEFINITIONS AND ACCOUNTING TERMS..................................................1
        1.01   Defined Terms.................................................................1
        1.02   Use of Certain Terms.........................................................15
        1.03   Accounting Terms.............................................................16
        1.04   Rounding.....................................................................16
        1.05   Exhibits and Schedules.......................................................16
        1.06   References to Agreements and Laws............................................16

SECTION 2. THE COMMITMENT AND EXTENSIONS OF CREDIT..........................................16
        2.01   The Commitment...............................................................16
        2.02   Borrowings, Conversions and Continuations of Loans...........................17
        2.03   Prepayments..................................................................17
        2.04   Reduction or Termination of Commitment.......................................17
        2.05   Principal and Interest.......................................................18
        2.06   Fees.........................................................................18
        2.07   Computation of Interest and Fees.............................................18
        2.08   Making Payments..............................................................19
        2.09   Funding Sources..............................................................19

SECTION 3. TAXES, YIELD PROTECTION AND ILLEGALITY...........................................19
        3.01   Taxes........................................................................19
        3.02   Illegality...................................................................21
        3.03   Inability to Determine Offshore Rate.........................................21
        3.04   Increased Cost and Reduced Return; Capital Adequacy..........................21
        3.05   Breakfunding Costs...........................................................22
        3.06   Matters Applicable to all Requests for Compensation..........................22
        3.07   Survival.....................................................................23

SECTION 4. CONDITIONS PRECEDENT TO EXTENSIONS OF CREDIT.....................................23
        4.01   Conditions of Initial Extension of Credit....................................23
        4.02   Conditions to all Extensions of Credit.......................................24

SECTION 5. REPRESENTATIONS AND WARRANTIES...................................................24
        5.01   Existence and Qualification; Power; Compliance with Laws.....................24
        5.03   Power; Authorization; Enforceable Obligations................................25
        5.04   No Legal Bar.................................................................25
        5.05   Financial Statements; No Material Adverse Effect.............................25
        5.06   Litigation...................................................................26
        5.07   No Default...................................................................26
        5.08   Ownership of Property; Liens.................................................26
        5.09   Taxes........................................................................26
        5.10   Margin Regulations; Investment Company Act; Public Utility Holding
               Company Act..................................................................26
        5.11   ERISA Compliance.............................................................27
        5.12   Intangible Assets............................................................27
        5.13   Compliance With Laws.........................................................27
        5.14   Environmental Compliance.....................................................27
        5.15   Insurance....................................................................27
</TABLE>

                                       -i-
<PAGE>

<TABLE>
<S>     <C>                                                                                 <C>
        5.16   Disclosure...................................................................28

SECTION 6. AFFIRMATIVE COVENANTS............................................................28
        6.01   Financial Statements.........................................................28
        6.02   Certificates, Notices and Other Information..................................28
        6.03   Payment of Taxes.............................................................29
        6.04   Preservation of Existence....................................................30
        6.05   Maintenance of Properties....................................................30
        6.06   Maintenance of Insurance.....................................................30
        6.07   Compliance With Laws.........................................................30
        6.08   Inspection Rights............................................................30
        6.09   Keeping of Records and Books of Account......................................30
        6.10   Compliance with ERISA........................................................30
        6.11   Compliance With Agreements...................................................30
        6.12   Use of Proceeds..............................................................31

SECTION 7. NEGATIVE COVENANTS...............................................................31
        7.01   Indebtedness.................................................................31
        7.02   Liens and Negative Pledges...................................................32
        7.03   Fundamental Changes..........................................................33
        7.04   Dispositions.................................................................34
        7.05   Investments; Acquisitions....................................................34
        7.06   Restricted Payments..........................................................35
        7.07   ERISA........................................................................35
        7.08   Change in Nature of Business.................................................35
        7.09   Transactions with Affiliates.................................................35
        7.10   Hostile Acquisitions.........................................................35
        7.11   Margin Regulations...........................................................35
        7.12   Financial Covenants..........................................................36
        7.13   Change in Auditors...........................................................36

SECTION 8. EVENTS OF DEFAULT AND REMEDIES...................................................36
        8.01   Events of Default............................................................36
        8.02   Remedies Upon Event of Default...............................................38

SECTION 9. MISCELLANEOUS....................................................................39
        9.01   Amendments; Consents.........................................................39
        9.02   Requisite Notice; Effectiveness of Signatures and Electronic Mail............39
        9.03   Attorney Costs, Expenses and Taxes...........................................40
        9.04   Successors and Assigns; Participations.......................................41
        9.05   Set-Off......................................................................41
        9.06   No Waiver; Cumulative Remedies...............................................42
        9.07   Usury........................................................................42
        9.08   Counterparts.................................................................42
        9.09   Integration..................................................................42
        9.10   Nature of Lender's Obligations...............................................42
        9.11   Survival of Representations and Warranties...................................43
        9.12   Indemnity by Borrower........................................................43
        9.13   Nonliability of Lender.......................................................43
        9.14   No Third Parties Benefited...................................................44
        9.15   Severability.................................................................44
        9.16   Confidentiality..............................................................44
</TABLE>

                                      -ii-
<PAGE>

<TABLE>
<S>     <C>                                                                                 <C>
        9.17   Further Assurances...........................................................45
        9.18   Headings.....................................................................45
        9.19   Time of the Essence..........................................................45
        9.20   Governing Law................................................................45
        9.21   Waiver of Right to Trial by Jury.............................................46

SIGNATURES.....................................................................................S-1
</TABLE>

EXHIBITS

            FORM OF

      A     Request for Extension of Credit
      B     Compliance Certificate
      C     Opinion of Counsel

SCHEDULES

      5.02  Subsidiaries
      7.01  Existing Indebtedness, Liens and Negative Pledges
      9.02  Notice Addresses and Lending Office

                                     -iii-
<PAGE>

                                CREDIT AGREEMENT

      This CREDIT AGREEMENT ("Agreement") is entered into as of December 21,
2001, by and between BROADCOM CORPORATION, a California corporation
("Borrower"), and BANK OF AMERICA, N.A. ("Lender").

                                     RECITAL

      Borrower has requested that Lender provide a revolving line of credit, and
Lender is willing to do so on the terms and conditions set forth herein.

      In consideration of the mutual covenants and agreements herein contained,
the parties hereto covenant and agree as follows:

                                   SECTION 1.

                        DEFINITIONS AND ACCOUNTING TERMS

      1.01 DEFINED TERMS.  As used in this Agreement, the following terms shall
have the meanings set forth below:

      "Acquisition" means the acquisition, by purchase or otherwise, of all or
substantially all of the assets, capital stock or other ownership of any Person
or any division or line of business of any Person.

      "Affiliate" means any Person directly or indirectly controlling,
controlled by, or under direct or indirect common control with, another Person.
A Person shall be deemed to be "controlled by" any other Person if such other
Person possesses, directly or indirectly, power (a) to vote 10% or more of the
securities (on a fully diluted basis) having ordinary voting power for the
election of directors or managing general partners; or (b) to direct or cause
the direction of the management and policies of such Person whether by contract
or otherwise.

      "Agreement" means this Credit Agreement, as amended, restated, extended,
supplemented or otherwise modified in writing from time to time.

      "Applicable Amount" means a per annum rate equal to:

            (a)   with respect to Base Rate Loans, 0 percent;

            (b)   with respect to Offshore Rate Loans, 1 percent; and

            (c)   with respect to the Commitment fee, 0.35 percent.

      "Applicable Payment Date" means, (a) as to any Offshore Rate Loan, the
last day of the relevant Interest Period, any date that such Loan is prepaid or
converted in whole or in part and the Maturity Date; and (b) as to any other
Obligations, the last Business Day of each calendar quarter and the Maturity
Date; provided, further, that interest accruing at the Default Rate shall be
payable from time to time upon demand of Lender.

                                      -1-
<PAGE>

      "Applicable Time" means California time.

      "Attorney Costs" means and includes all reasonable and documented fees and
disbursements of any law firm or other external counsel and the reasonable and
documented allocated cost of internal legal services and all reasonable and
documented out of pocket disbursements of internal counsel.

      "Audited Financial Statements" means the audited consolidated balance
sheet of Borrower and its Subsidiaries for the fiscal year ended December 31,
2000, and the related consolidated statements of income and cash flows for such
fiscal year of Borrower.

      "Base Rate" means for any day a fluctuating rate per annum equal to the
higher of (a) the Federal Funds Rate plus 1/2 of 1% and (b) the rate of interest
in effect for such day as publicly announced from time to time by Lender as its
"prime rate." Such rate is a rate set by Lender based upon various factors
including Lender's costs and desired return, general economic conditions and
other factors, and is used as a reference point for pricing some loans, which
may be priced at, above, or below such announced rate. Any change in such rate
announced by Lender shall take effect at the opening of business on the day
specified in the public announcement of such change.

      "Base Rate Loan" means a Loan which bears interest based on the Base Rate.

      "Borrower" has the meaning set forth in the introductory paragraph hereto.

      "Business Day" means any day other than a Saturday, Sunday, or other day
on which commercial banks are authorized to close under the Laws of, or are in
fact closed in, the state where Lender's Lending Office is located and, if such
day relates to any Offshore Rate Loan, means any such day on which dealings in
Dollar deposits are conducted by and between banks in the offshore Dollar
interbank market.

      "Cash" means money, currency or a credit balance in a Deposit Account.

      "Cash Equivalents" means, as of any date, (a) marketable securities (i)
issued or directly and unconditionally guaranteed as to interest and principal
by the United States government or (ii) issued by any agency of the United
States of America the obligations of which are backed by the full faith and
credit of the United States of America, in each case maturing within one year
after such date; (b) marketable direct obligations issued by any state of the
United States of America or any political subdivision of any such state or any
public instrumentality thereof, in each case maturing within one year after such
date and having, at the time of the acquisition thereof, one of the two highest
ratings obtainable from either Standard & Poor's ("S&P") or Moody's Investors
Service, Inc. ("Moody's"); (c) (i) commercial paper maturing no more than one
year from the date of creation thereof, or (ii) marketable debt securities
maturing within one year after such date, and, in each case, either issued by a
Lender (or an Affiliate of a Lender) or having, at the time of the acquisition
thereof, a rating of at least A-1 from S&P or at least P-1 from Moody's; (d)
certificates of deposit or bankers' acceptances maturing within one year after
such date and issued or accepted by any Lender or by any commercial bank
organized under the laws of the United States of America or any state thereof or
the District of Columbia that (i) is at least "adequately capitalized" (as
defined in the regulations of its primary Federal banking

                                      -2-
<PAGE>

regulator) and (ii) has Tier 1 capital (as defined in such regulations) of not
less than $100,000,000; or (e) shares of any money market mutual fund that (i)
has at least 95% of its assets invested continuously in the types of investments
referred to in subsections (a), (b) or (c) above, (ii) has net assets of not
less than $500,000,000, and (iii) has the highest rating obtainable from either
S&P or Moody's.

      "Change of Control" means, with respect to any Person, an event or series
of events by which:

            (a) any "person" or "group" (as such terms are used in Sections
      13(d) and 14(d) of the Securities Exchange Act of 1934, but excluding (i)
      any employee benefit plan of such Person or its subsidiaries, (ii) any
      Person acting in its capacity as trustee, agent or other fiduciary or
      administrator of any such plan or (iii) any Permitted Holder), becomes the
      "beneficial owner" (as defined in Rules 13d-3 and 13d-5 under the
      Securities Exchange Act of 1934, except that a person shall be deemed to
      have "beneficial ownership" of all securities that such person has the
      right to acquire, whether such right is exercisable immediately or only
      after the passage of time), directly or indirectly, of 50% or more of the
      membership interests of such Person; or

            (b) during any period of 12 consecutive months, a majority of the
      members of the board of directors or other equivalent governing body of
      such Person cease to be composed of individuals (i) who were members of
      that board or equivalent governing body on the first day of such period,
      (ii) whose election or nomination to that board or equivalent governing
      body was approved by individuals referred to in subsection (i) above
      constituting at the time of such election or nomination at least a
      majority of that board or equivalent governing body or (iii) whose
      election or nomination to that board or other equivalent governing body
      was approved by individuals referred to in subsections (i) and (ii) above
      constituting at the time of such election or nomination at least a
      majority of that board or equivalent governing body.

      "Closing Date" means the date all the conditions precedent in Section 4.01
are satisfied or waived by Lender.

      "Code" means the Internal Revenue Code of 1986, as amended from time to
time.

      "Commitment" means $90,000,000, as such amount may be reduced or adjusted
from time to time in accordance with the terms of this Agreement.

      "Compliance Certificate" means a certificate substantially in the form of
Exhibit B, properly completed and signed by a Responsible Officer of Borrower.

      "Consolidated Current Liabilities" means, as of any date of determination,
the total liabilities of Borrower and its Subsidiaries on a consolidated basis
which may properly be classified as current liabilities in conformity with GAAP.

      "Consolidated Interest Charges" means, for any period, for Borrower and
its Subsidiaries on a consolidated basis, the sum of (a) all interest, premium
payments, fees, charges and related expenses of Borrower and its Subsidiaries in
connection with borrowed money (including

                                      -3-
<PAGE>

capitalized interest) or in connection with the deferred purchase price of
assets, in each case to the extent treated as interest in accordance with GAAP,
and (b) the portion of rent expense of Borrower and its Subsidiaries with
respect to such period under capital leases that is treated as interest in
accordance with GAAP.

      "Consolidated LTM Adjusted EBITDA" means, for any period, for Borrower and
its Subsidiaries on a consolidated basis, an amount equal to (a) the sum of (i)
Consolidated Net Income, (ii) Consolidated Interest Charges, (iii) the amount of
taxes, based on or measured by income, used or included in the determination of
such Consolidated Net Income, (iv) the amount of depreciation and amortization
expense deducted in determining such Consolidated Net Income including
amortization of intangibles (including goodwill), (v) non-cash stock
compensation expense and all other non-cash expenses (other than any such
non-cash expenses to the extent they represent an accrual of, or reserve for,
cash expenditures in any future period) but only to the extent deducted in the
calculation of Consolidated Net Income, (vi) merger and acquisition costs, (vii)
write-offs of goodwill and in process research and development costs, (viii)
restructuring costs, and (ix) extraordinary, unusual or non-recurring charges or
losses to the extent deducted in the calculation of Consolidated Net Income,
minus (b) the sum of (i) extraordinary, unusual or non-recurring gains to the
extent added in the calculation of Consolidated Net Income and (ii) all other
non-cash items added in the calculation of Consolidated Net Income (other than
any such non-cash items to the extent they will result in the receipt of cash
payments in any future period).

      "Consolidated Net Income" means, for any period, for Borrower and its
Subsidiaries on a consolidated basis, the net income (or loss) of Borrower and
its Subsidiaries determined in accordance with GAAP.

      "Consolidated Quick Assets" means, as of any date of determination, for
Borrower and its Subsidiaries on a consolidated basis, (a) Cash, (b) Cash
Equivalents, and (c) net current accounts receivable.

      "Consolidated Tangible Net Worth" means, as of any date of determination,
for Borrower and its Subsidiaries on a consolidated basis, Shareholders' Equity
of Borrower and its Subsidiaries on that date minus the Intangible Assets of
Borrower and its Subsidiaries on that date.

      "Continuation" and "Continue" mean, with respect to any Offshore Rate
Loan, the continuation of such Offshore Rate Loan as an Offshore Rate Loan on
the last day of the Interest Period for such Loan.

      "Contractual Obligation" means, as to any Person, any provision of any
security issued by such Person or of any agreement, instrument or undertaking to
which such Person is a party or by which it or any of its property is bound.

      "Conversion" and "Convert" mean, with respect to any Loan, the conversion
of such Loan from or into another type of Loan.

      "Debtor Relief Laws" means the Bankruptcy Code of the United States of
America, and all other liquidation, conservatorship, bankruptcy, assignment for
the benefit of creditors,

                                      -4-
<PAGE>

moratorium, rearrangement, receivership, insolvency, reorganization, or similar
debtor relief Laws of the United States of America or other applicable
jurisdictions from time to time in effect affecting the rights of creditors
generally.

      "Default" means any event that, with the giving of any notice, the passage
of time, or both, would be an Event of Default.

      "Default Rate" means an interest rate equal to the Base Rate plus the
Applicable Amount, if any, applicable to Base Rate Loans plus 2% per annum;
provided, however, that with respect to an Offshore Rate Loan, the Default Rate
shall be an interest rate equal to the interest rate (including any Applicable
Amount) otherwise applicable to such Loan plus 2% per annum, in each case to the
fullest extent permitted by applicable Laws.

      "Deposit Account" means a demand, time, savings, passbook or similar
account maintained with a Person engaged in the business of banking, including a
savings bank, savings and loan association, credit union or trust company.

      "Disposition" or "Dispose" means the sale, transfer, license or other
disposition (including any sale and leaseback transaction) of any property by
any Person, including any sale, assignment, transfer or other disposal with or
without recourse of any notes or accounts receivable or any rights and claims
associated therewith.

      "Dollar" and "$" means lawful money of the United States of America.

      "Environmental Laws" means all Laws relating to environmental, health,
safety and land use matters applicable to any property.

      "ERISA" means the Employee Retirement Income Security Act of 1974 and any
regulations issued pursuant thereto, as amended from time to time.

      "ERISA Affiliate" means any trade or business (whether or not
incorporated) under common control with Borrower within the meaning of Section
414(b) or (c) of the Code (and Sections 414(m) and (o) of the Code for purposes
of provisions relating to Section 412 of the Code).

      "ERISA Event" means (a) a Reportable Event with respect to a Pension Plan;
(b) a withdrawal by Borrower or any ERISA Affiliate from a Pension Plan subject
to Section 4063 of ERISA during a plan year in which it was a substantial
employer (as defined in Section 4001(a)(2) of ERISA) or a cessation of
operations that is treated as such a withdrawal under Section 4062(e) of ERISA;
(c) a complete or partial withdrawal by Borrower or any ERISA Affiliate from a
Multiemployer Plan or notification that a Multiemployer Plan is in
reorganization; (d) the filing of a notice of intent to terminate, the treatment
of a Plan amendment as a termination under Sections 4041 or 4041A of ERISA, or
the commencement of proceedings by the PBGC to terminate a Pension Plan or
Multiemployer Plan; (e) an event or condition which might reasonably be expected
to constitute grounds under Section 4042 of ERISA for the termination of, or the
appointment of a trustee to administer, any Pension Plan or Multiemployer Plan;
or (f) the imposition of any liability under Title IV of ERISA, other than PBGC
premiums due but not delinquent under Section 4007 of ERISA, upon Borrower or
any ERISA Affiliate.

                                      -5-
<PAGE>

      "Event of Default" means any of the events specified in Section 8.

      "Extension of Credit" means the borrowing, Conversion or Continuation of
any Loan (collectively, the "Extensions of Credit").

      "Federal Funds Rate" means, for any day, the rate per annum (rounded
upwards to the nearest 1/100 of 1%) equal to the weighted average of the rates
on overnight Federal funds transactions with members of the Federal Reserve
System arranged by Federal funds brokers on such day, as published by the
Federal Reserve Bank on the Business Day next succeeding such day; provided
that (a) if such day is not a Business Day, the Federal Funds Rate for such day
shall be such rate on such transactions on the next preceding Business Day as so
published on the next succeeding Business Day, and (b) if no such rate is so
published on such next succeeding Business Day, the Federal Funds Rate for such
day shall be the average rate charged to Lender on such day on such transactions
as determined by Lender.

      "GAAP" means generally accepted accounting principles set forth in the
opinions and pronouncements of the Accounting Principles Board and the American
Institute of Certified Public Accountants and statements and pronouncements of
the Financial Accounting Standards Board or such other principles as may be
approved by a significant segment of the accounting profession, that are
applicable to the circumstances as of the date of determination, consistently
applied. If at any time any change in GAAP would affect the computation of any
financial ratio or requirement set forth in any Loan Document, and either
Borrower or Lender shall so request, Lender and Borrower shall negotiate in good
faith to amend such ratio or requirement to preserve the original intent thereof
in light of such change in GAAP (subject to the approval of Lender and
Borrower), provided that, until so amended, (a) such ratio or requirement shall
continue to be computed in accordance with GAAP prior to such change therein and
(b) Borrower shall provide to Lender financial statements and other documents
required under this Agreement or as reasonably requested hereunder setting forth
a reconciliation between calculations of such ratio or requirement made before
and after giving effect to such change in GAAP.

      "Governmental Authority" means (a) any international, foreign, federal,
state, county or municipal government, or political subdivision thereof, (b) any
governmental or quasi-governmental agency, authority, board, bureau, commission,
department, instrumentality, central bank or public body, or (c) any court,
administrative tribunal or public utility.

      "Guaranty Obligation" means, as to any Person, any (a) guaranty by such
Person of Indebtedness of, or other obligation payable or performable by, any
other Person or (b) assurance, agreement, letter of responsibility, letter of
awareness, undertaking or arrangement given by such Person to an obligee of any
other Person with respect to the payment or performance of an obligation by, or
the financial condition of, such other Person, whether direct, indirect or
contingent, including any purchase or repurchase agreement covering such
obligation or any collateral security therefor, any agreement to provide funds
(by means of loans, capital contributions or otherwise) to such other Person,
any agreement to support the solvency or level of any balance sheet item of such
other Person or any "keep-well" or other arrangement of whatever nature given
for the purpose of assuring or holding harmless such obligee against loss with
respect to any obligation of such other Person; provided, however, that the term
Guaranty Obligation shall not include endorsements of instruments for deposit or
collection in the ordinary

                                      -6-
<PAGE>

course of business. The amount of any Guaranty Obligation shall be deemed to be
an amount equal to the maximum reasonably anticipated liability in respect
thereof as determined by the Person in good faith.

      "Indebtedness" means, as to any Person at a particular time, all of the
following:

            (a) all obligations of such Person for borrowed money and all
      obligations of such Person evidenced by bonds, debentures, notes or other
      similar instruments;

            (b) any direct or contingent obligations of such Person arising
      under letters of credit (including standby and commercial), banker's
      acceptances, bank guaranties, surety bonds and similar instruments;

            (c) net obligations under any Swap Contract in an amount equal to
      (i) if such Swap Contract has been closed out, the termination value
      thereof, or (ii) if such Swap Contract has not been closed out, the
      mark-to-market value thereof determined on the basis of readily available
      quotations provided by any recognized dealer in such Swap Contract;

            (d) whether or not so included as liabilities in accordance with
      GAAP, all obligations of such Person to pay the deferred purchase price of
      property or services, and indebtedness (excluding prepaid interest
      thereon) secured by a Lien on property owned or being purchased by such
      Person (including indebtedness arising under conditional sales or other
      title retention agreements), whether or not such indebtedness shall have
      been assumed by such Person or is limited in recourse;

            (e) lease payment obligations under capital leases or Synthetic
      Lease Obligations; or

            (f) all Guaranty Obligations of such Person in respect of any of the
      foregoing.

      For all purposes of this Agreement, the Indebtedness of any Person shall
include the Indebtedness of any partnership or joint venture in which such
Person is a general partner or a joint venturer, unless such Indebtedness is
expressly made non-recourse to such Person except for customary exceptions
reasonably acceptable to Lender.

      "Indemnified Liabilities" has the meaning set forth in Section 9.12.

      "Indemnitees" has the meaning set forth in Section 9.12.

      "Intangible Assets" means assets that are considered to be intangible
assets under GAAP, including customer lists, goodwill, computer software,
copyrights, trade names, trade marks, patents, unamortized deferred charges,
unamortized debt discount and capitalized research and development costs.

        "Interest Period" means for each Offshore Rate Loan, (a) initially, the
period commencing on the date such Offshore Rate Loan is disbursed or Continued
or Converted into such Offshore Rate Loan and (b) thereafter, the period
commencing on the last day of the

                                      -7-
<PAGE>

preceding Interest Period, and ending, in each case, on the earlier of (x) the
scheduled Maturity Date, or (y) to the extent then available, one, two, or three
months thereafter (as selected by Borrower); provided that:

            (i) any Interest Period that would otherwise end on a day that is
      not a Business Day shall be extended to the next succeeding Business Day
      unless such Business Day falls in another calendar month, in which case
      such Interest Period shall end on the next preceding Business Day;

            (ii) any Interest Period which begins on the last Business Day of a
      calendar month (or on a day for which there is no numerically
      corresponding day in the calendar month at the end of such Interest
      Period) shall end on the last Business Day of the calendar month at the
      end of such Interest Period; and

            (iii) unless Lender otherwise consents, there may not be more than
      five Interest Periods for Offshore Rate Loans in effect at any time.

      "Investment" means, as to any Person, any acquisition or any investment by
such Person, whether by means of the purchase or other acquisition of stock or
other securities of any other Person or by means of a loan, creating a debt,
capital contribution, guaranty or other debt or equity participation or interest
in any other Person, including any partnership and joint venture interests in
such other Person. For purposes of covenant compliance, the amount of any
Investment shall be the amount actually invested, without adjustment for
subsequent increases or decreases in the value of such Investment.

      "IRS" means the United States Internal Revenue Service.

      "Laws" or "Law" means all international, foreign, federal, state and local
statutes, treaties, rules, guidelines, regulations, ordinances, codes and
administrative or judicial precedents or authorities, including the
interpretation or administration thereof by any Governmental Authority charged
with the enforcement, interpretation or administration thereof, and all
applicable administrative orders, directed duties, requests, licenses,
authorizations and permits of, and agreements with, any Governmental Authority,
in each case whether or not having the force of law.

      "Lending Office" means the office or offices of Lender described as such
on Schedule 9.02, or such other office or offices as Lender may from time to
time notify Borrower.

      "Lien" means any mortgage, pledge, hypothecation, assignment, deposit
arrangement (in the nature of compensating balances, Cash collateral accounts or
security interests), encumbrance, lien (statutory or other), charge, or
preference, priority or other security interest or preferential arrangement of
any kind or nature whatsoever (including any conditional sale or other title
retention agreement, any financing lease having substantially the same economic
effect as any of the foregoing, and the filing of any financing statement under
the Uniform Commercial Code or comparable Laws of any jurisdiction), including
the interest of a purchaser of accounts receivable.

        "Loan" means any advance made as provided in Section 2 (collectively,
the "Loans").

                                      -8-
<PAGE>

      "Loan Documents" means this Agreement, each Request for Extension of
Credit, each Compliance Certificate, each certificate, each fee letter, and each
other instrument, document and agreement from time to time delivered in
connection with this Agreement.

      "Long Term Cash Equivalents" means, as of any date, (a) marketable
securities (i) issued or directly and unconditionally guaranteed as to interest
and principal by the United States government or (ii) issued by any agency of
the United States of America the obligations of which are backed by the full
faith and credit of the United States of America, in each case maturing within
three years after such date; (b) marketable direct obligations issued by any
state of the United States of America or any political subdivision of any such
state or any public instrumentality thereof, in each case maturing within three
years after such date and having, at the time of the acquisition thereof, one of
the two highest ratings obtainable from either S&P or Moody's; (c) (i)
commercial paper maturing no more than three years from the date of creation
thereof, or (ii) marketable debt securities maturing within three years after
such date, and, in each case, either issued by a Lender (or an Affiliate of a
Lender) or having, at the time of the acquisition thereof, a rating of at least
A-1 from S&P or at least P-1 from Moody's; (d) certificates of deposit or
bankers' acceptances maturing within three years after such date and issued or
accepted by any Lender or by any commercial bank organized under the laws of the
United States of America or any state thereof or the District of Columbia that
(i) is at least "adequately capitalized" (as defined in the regulations of its
primary Federal banking regulator) and (ii) has Tier 1 capital (as defined in
such regulations) of not less than $100,000,000; or (e) shares of any money
market mutual fund that (i) has at least 95% of its assets invested continuously
in the types of investments referred to in subsections (a), (b) or (c) above,
(ii) has net assets of not less than $500,000,000, and (iii) has the highest
rating obtainable from either S&P or Moody's.

      "Material Adverse Effect" means any set of circumstances or events which
(a) has a material adverse effect upon the validity or enforceability of any
Loan Document and (b) is material and adverse to the condition (financial or
otherwise), business, assets, operations or prospects of Borrower and its
Subsidiaries, taken as a whole, and which materially impairs the ability of
Borrower to perform the Obligations.

      "Material Subsidiaries" means one or more Subsidiaries having, alone or in
the aggregate, (a) 5% or more of the gross revenue of Borrower and its
Subsidiaries on a consolidated basis, or (b) 5% or more of the fair market value
of the assets of Borrower and its Subsidiaries on a consolidated basis.

      "Maturity Date" means (a) December 19, 2002, or (b) such earlier date upon
which the Commitment may be terminated in accordance with the terms of this
Agreement.

      "Minimum Amount" means, with respect to each of the following actions, the
minimum amount and any multiples in excess thereof set forth opposite such
action:

                                      -9-
<PAGE>

<TABLE>
<CAPTION>
                                                              MULTIPLES IN
       TYPE OF ACTION                   MINIMUM AMOUNT       EXCESS THEREOF
---------------------------------       --------------       --------------
<S>                                     <C>                  <C>
Borrowing or prepayment of, or            $1,000,000             $500,000
Conversion into, Base Rate Loans

Borrowing, prepayment or                  $1,000,000             $500,000
Continuation of, or Conversion
into, Offshore Rate Loans

Reduction in Commitments                  $5,000,000             $500,000
</TABLE>

      "Multiemployer Plan" means any employee benefit plan of the type described
in Section 4001(a)(3) of ERISA.

      "Negative Pledge" means a Contractual Obligation that restricts Liens on
property.

      "Net Securities Proceeds" means the Cash proceeds (net of underwriting
discounts and commissions and other reasonable costs and expenses associated
therewith, including legal fees and expenses) from the issuance of Indebtedness
(as defined in subsections (a), (e) and (f) of the definition thereof) by
Borrower or any of its Subsidiaries.

      "Obligations" means all advances to, and debts, liabilities, obligations,
covenants and duties of, Borrower arising under any Loan Document, whether
direct or indirect (including those acquired by assumption), absolute or
contingent, due or to become due, now existing or hereafter arising and
including interest that accrues after the commencement of any proceeding under
any Debtor Relief Laws by or against Borrower or any Subsidiary or Affiliate of
Borrower.

      "Offshore Base Rate" has the meaning set forth in the definition of
Offshore Rate.

      "Offshore Rate" means for any Interest Period with respect to any Offshore
Rate Loan, a rate per annum determined by Lender pursuant to the following
formula:

                                       Offshore Base Rate
               Offshore Rate = ------------------------------------
                               1.00 - Eurodollar Reserve Percentage

                                      -10-
<PAGE>

            Where,

      "Offshore Base Rate" means, for such Interest Period:

            (a) the rate per annum equal to the rate determined by Lender to be
      the offered rate that appears on the page of the Telerate screen that
      displays an average British Bankers Association Interest Settlement Rate
      for deposits in Dollars (for delivery on the first day of such Interest
      Period) with a term equivalent to such Interest Period, determined as of
      approximately 11:00 a.m. (London time) two Business Days prior to the
      first day of such Interest Period, or

            (b) in the event the rate referenced in the preceding subsection (a)
      does not appear on such page or service or such page or service shall
      cease to be available, the rate per annum equal to the rate determined by
      Lender to be the offered rate on such other page or other service that
      displays an average British Bankers Association Interest Settlement Rate
      for deposits in Dollars (for delivery on the first day of such Interest
      Period) with a term equivalent to such Interest Period, determined as of
      approximately 11:00 a.m. (London time) two Business Days prior to the
      first day of such Interest Period, or

            (c) in the event the rates referenced in the preceding subsections
      (a) and (b) are not available, the rate per annum (rounded upward to the
      next 1/100th of 1%) determined by Lender as the rate of interest at which
      Dollar deposits for delivery on the first day of such Interest Period in
      same day funds in the approximate amount of the Offshore Rate Loan being
      made, Converted or Continued and with a term equivalent to such Interest
      Period would be offered by Lender's London Branch to major banks in the
      offshore Dollar market at their request at approximately 11:00 a.m.
      (London time) two Business Days prior to the first day of such Interest
      Period.

      "Eurodollar Reserve Percentage" means, for any day during any Interest
Period, the reserve percentage (expressed as a decimal, rounded upward to the
next 1/100th of 1%) in effect on such day applicable to Lender under regulations
issued from time to time by the Board of Governors of the Federal Reserve System
for determining the maximum reserve requirement (including any emergency,
supplemental or other marginal reserve requirement) with respect to Eurocurrency
funding (currently referred to as "Eurocurrency liabilities"). The Offshore Rate
for each outstanding Offshore Rate Loan shall be adjusted automatically as of
the effective date of any change in the Eurodollar Reserve Percentage.

      The determination of the Eurodollar Reserve Percentage and the Offshore
Base Rate by Lender shall be prima facie evidence absent demonstrable error.

      "Offshore Rate Loan" means a Loan bearing interest based on the Offshore
Rate.

      "Ordinary Course Swap Obligations" means all obligations (contingent or
otherwise) of Borrower or any Subsidiary existing or arising under any Swap
Contract, provided that each of the following criteria is satisfied: (a) such
obligations are (or were) entered into by such Person in the ordinary course of
business for the purpose of directly mitigating risks associated with
liabilities, commitments, investments, assets, or property held or reasonably
anticipated by such

                                      -11-
<PAGE>

Person, or changes in the value of securities issued by such Person and not for
purposes of speculation or taking a "market view;" and (b) such Swap Contracts
do not contain any provision ("walk-away" provision) exonerating the
non-defaulting party from its obligation to make payments on outstanding
transactions to the defaulting party.

      "Organization Documents" means, (a) with respect to any corporation, the
certificate or articles of incorporation and the bylaws; (b) with respect to any
limited liability company, the articles of formation and operating agreement;
and (c) with respect to any partnership, joint venture, trust or other form of
business entity, the partnership or joint venture agreement and any agreement,
instrument, filing or notice with respect thereto filed in connection with its
formation with the secretary of state or other department in the state of its
formation, in each case as amended from time to time.

      "Outstanding Obligations" means, as of any date, and giving effect to
making any Extensions of Credit requested on such date and all payments,
repayments and prepayments made on such date, the aggregate outstanding
principal amount of all Loans.

      "PBGC" means the Pension Benefit Guaranty Corporation or any successor
thereto established under ERISA.

      "Pension Plan" means any "employee pension benefit plan" (as such term is
defined in Section 3(2) of ERISA), other than a Multiemployer Plan, that is
subject to Title IV of ERISA and is sponsored or maintained by Borrower or any
ERISA Affiliate or to which Borrower or any ERISA Affiliate contributes or has
an obligation to contribute, or in the case of a multiple employer plan (as
described in Section 4064(a) of ERISA) has made contributions at any time during
the immediately preceding five plan years.

      "Permitted Holder" means (a) any current member of Borrower's Board of
Directors, (b) any current officer of Borrower, (c) any intervivos trust or
public or private foundation founded by any of the individuals set forth in
subsections (a) or (b), (d) any estate succeeding to the interests of any of the
individuals set forth in subsections (a) or (b), (e) any heirs, legatees or
devisees of any of the individuals set forth in subsections (a) or (b), and any
beneficiaries of any intervivos trust set forth in subsection (c), and (f) any
Affiliates of any of the foregoing.

      "Person" means any individual, trustee, corporation, general partnership,
limited partnership, limited liability company, joint stock company, trust,
unincorporated organization, bank, business association, firm, joint venture,
Governmental Authority, or otherwise.

      "Plan" means any employee benefit plan maintained or contributed to by a
Borrower or by any trade or business (whether or not incorporated) under common
control with a Borrower as defined in Section 4001(b) of ERISA and insured by
the Pension Benefit Guaranty Corporation under Title IV of ERISA.

      "Quick Ratio" means, as of any date of determination, the ratio of (a)
Consolidated Quick Assets to (b) Consolidated Current Liabilities.

                                      -12-
<PAGE>

      "Reportable Event" means any of the events set forth in Section 4043(b) of
ERISA or the regulations thereunder, a withdrawal from a Plan described in
Section 4063 of ERISA, or a cessation of operations described in Section 4062(e)
of ERISA.

      "Request for Extension of Credit" means, unless otherwise specified
herein, a written request substantially in the form of Exhibit A, duly completed
and signed by a Responsible Officer of Borrower and delivered by Requisite
Notice.

      "Requisite Notice" means a notice delivered in accordance with Section
9.02.

      "Requisite Time" means, with respect to any of the actions listed below,
the time and date set forth below opposite such action (all times are in Pacific
time):

<TABLE>
<CAPTION>
                                                    APPLICABLE
                  TYPE OF ACTION                    TIME                DATE OF ACTION
     ---------------------------------------        ----------   -------------------------------------
<S>                                                 <C>          <C>
     Delivery of Request for Extension of
     Credit for, or notice for:

     [ ]  Borrowing of a Base Rate Loan             10:00 a.m.    Same Business Day as such
                                                                  borrowing or prepayment

     [ ]  Conversion into a Base Rate Loan          10:00 a.m.    3 Business Days prior such
                                                                  Conversion

     [ ]  Borrowing, prepayment or                  11:00 a.m.    3 Business Days prior to such
          Continuation of, or Conversion into,                     borrowing, prepayment Continuation
          an Offshore Rate Loan                                    or Conversion

     [ ]  Voluntary reduction in or                 11:00 a.m.    2 Business Days prior to such
          termination of Commitment                               reduction or termination

     [ ]  Payments and prepayment of a Base         12:00 p.m.    On date payment is due
          Rate Loan to Borrower or Lender
</TABLE>

      "Responsible Officer" means the president, chief financial officer,
treasurer, assistant treasurer or controller of Borrower. Any document or
certificate hereunder that is signed by a Responsible Officer of Borrower shall
be conclusively presumed to have been authorized by all necessary corporate,
partnership and/or other action on the part of Borrower and such Responsible
Officer shall be conclusively presumed to have acted on behalf of Borrower.

      "Restricted Payment" means:

            (a) the declaration or payment of any dividend or distribution by
      Borrower or any Subsidiary, either in Cash or property, on any shares of
      the capital stock of any class of Borrower or any Subsidiary (except
      dividends or other distributions (i) payable solely in shares of capital
      stock of Borrower or any Subsidiary or (ii) payable by any Subsidiary to
      Borrower or to a wholly-owned Subsidiary);

            (b) the purchase, redemption or retirement by Borrower or any
      Subsidiary of any shares of its capital stock of any class or any
      warrants, rights or options to purchase or acquire any shares of its
      capital stock, whether directly or indirectly (except purchases,

                                      -13-
<PAGE>

      redemptions or retirements (i) payable solely in shares of capital stock
      of Borrower or any Subsidiary or (ii) payable by any Subsidiary to
      Borrower or to a wholly-owned Subsidiary);

            (c) any other payment or distribution by Borrower or any Subsidiary
      in respect of its capital stock, either directly or indirectly;

            (d) any Investment other than an Investment otherwise permitted
      under any Loan Document; or

            (e) the prepayment, repayment, redemption, defeasance or other
      acquisition or retirement for value prior to any scheduled maturity,
      scheduled repayment or scheduled sinking fund payment, of any Indebtedness
      subordinated in right of payment to the Obligations.

      "ServerWorks" means ServerWorks Corporation, a Delaware corporation.

      "Shareholders' Equity" means, as of any date of determination for Borrower
and its Subsidiaries on a consolidated basis, shareholders' equity as of that
date determined in accordance with GAAP.

      "Subsidiary" of a Person means a corporation, partnership, joint venture,
limited liability company or other business entity of which a majority of the
shares of securities or other interests having ordinary voting power for the
election of directors or other governing body (other than securities or
interests having such power only by reason of the happening of a contingency)
are at the time beneficially owned, or the management of which is otherwise
controlled, directly, or indirectly through one or more intermediaries, or both,
by such Person. Unless otherwise specified, all references to a "Subsidiary" or
to "Subsidiaries" in this Agreement shall refer to a Subsidiary or Subsidiaries
of Borrower.

      "Swap Contract" means (a) any and all rate swap transactions, basis swaps,
credit derivative transactions, forward rate transactions, commodity swaps,
commodity options, forward commodity contracts, equity or equity index swaps or
options, bond or bond price or bond index swaps or options or forward bond or
forward bond price or forward bond index transactions, interest rate options,
forward foreign exchange transactions, cap transactions, floor transactions,
collar transactions, currency swap transactions, cross-currency rate swap
transactions, currency options, spot contracts, or any other similar
transactions or any combination of any of the foregoing (including any options
to enter into any of the foregoing), whether or not any such transaction is
governed by or subject to any master agreement, and (b) any and all transactions
of any kind, and the related confirmations, which are subject to the terms and
conditions of, or governed by, any form of master agreement published by the
International Swaps and Derivatives Association, Inc., any International Foreign
Exchange Master Agreement, or any other master agreement (any such master
agreement, together with any related schedules, as amended, restated, extended,
supplemented or otherwise modified in writing from time to time, a "Master
Agreement"), including any such obligations or liabilities under any Master
Agreement.

                                      -14-
<PAGE>

      "Swap Termination Value" means, in respect of any one or more Swap
Contracts, after taking into account the effect of any legally enforceable
netting agreement relating to such Swap Contracts, (a) for any date on or after
the date such Swap Contracts have been closed out and termination value(s)
determined in accordance therewith, such termination value(s), and (b) for any
date prior to the date referenced in subsection (a) the amount(s) determined as
the mark-to-market value(s) for such Swap Contracts, as determined based upon
one or more mid-market or other readily available quotations provided by any
recognized dealer in such Swap Contracts (which may include Lender).

      "Synthetic Lease Obligations" means all monetary obligations of a Person
under (a) a so-called synthetic, off-balance sheet or tax retention lease, or
(b) an agreement for the use or possession of property creating obligations
which do not appear on the balance sheet of such Person but which, upon the
insolvency or bankruptcy of such Person, would be characterized as the
Indebtedness of such Person (without regard to accounting treatment).

      "Threshold Amount" means $30,000,000.

      "to the best knowledge of" means, when modifying a representation,
warranty or other statement of any Person, that the fact or situation described
therein is known by such Person (or, in the case of a Person other than a
natural Person, known by any officer of such Person) making the representation,
warranty or other statement, or with the exercise of reasonable due diligence
under the circumstances (in accordance with the standard of what a reasonable
Person in similar circumstances would have done) would have been known by such
Person (or, in the case of a Person other than a natural Person, would have been
known by an officer of such Person).

      "type" of Loan means (a) a Base Rate Loan, and (b) an Offshore Rate Loan.

      "Unfunded Pension Liability" means the excess of a Pension Plan's benefit
liabilities under Section 4001(a)(16) of ERISA, over the current value of that
Pension Plan's assets, determined in accordance with the assumptions used for
funding the Pension Plan pursuant to Section 412 of the Code for the applicable
plan year.

      1.02 USE OF CERTAIN TERMS.

      (a) All terms defined in this Agreement shall have the defined meanings
when used in any certificate or other document made or delivered pursuant hereto
or thereto, unless otherwise defined therein.

      (b) As used herein, unless the context requires otherwise, the masculine,
feminine and neuter genders and the singular and plural include one another.

      (c) The words "herein" and "hereunder" and words of similar import when
used in any Loan Document shall refer to the Loan Documents as a whole and not
to any particular provision thereof. The term "including" is by way of example
and not limitation. References herein to a Section, subsection or clause shall,
unless the context otherwise requires, refer to the appropriate Section,
subsection or clause in this Agreement.

                                      -15-
<PAGE>

      (d) The term "or" is disjunctive; the term "and" is conjunctive. The term
"shall" is mandatory; the term "may" is permissive.

      1.03 ACCOUNTING TERMS. All accounting terms not specifically or completely
defined in this Agreement shall be construed in conformity with, and all
financial data required to be submitted by this Agreement shall be prepared in
conformity with, GAAP applied on a consistent basis, as in effect from time to
time, applied in a manner consistent with that used in preparing the Audited
Financial Statements, except as otherwise specifically prescribed herein.

     1.04 ROUNDING. Any financial ratios required to be maintained by Borrower
pursuant to this Agreement shall be calculated by dividing the appropriate
component by the other component, carrying the result to one place more than the
number of places by which such ratio is expressed in this Agreement and rounding
the result up or down to the nearest number (with a round-up if there is no
nearest number) to the number of places by which such ratio is expressed in this
Agreement.

      1.05 EXHIBITS AND SCHEDULES. All exhibits and schedules to this Agreement,
either as originally existing or as the same may from time to time be
supplemented, modified or amended, are incorporated herein by this reference. A
matter disclosed on any Schedule shall be deemed disclosed on all Schedules.

      1.06 REFERENCES TO AGREEMENTS AND LAWS. Unless otherwise expressly
provided herein, (a) references to agreements (including the Loan Documents) and
other contractual instruments shall include all amendments, restatements,
extensions, supplements and other modifications thereto (unless prohibited by
any Loan Document), and (b) references to any Law shall include all statutory
and regulatory provisions consolidating, amending, replacing, supplementing or
interpreting such Law.

                                   SECTION 2.

                     THE COMMITMENT AND EXTENSIONS OF CREDIT

      2.01 THE COMMITMENT.

      (a) Subject to the terms and conditions set forth in this Agreement,
Lender agrees to make, Convert and Continue Loans until the Maturity Date in
such amounts as Borrower may from time to time request; provided, however, that
the Outstanding Obligations shall not exceed the Commitment at any time. Subject
to the foregoing and the other terms and conditions hereof, Borrower may borrow,
Convert, Continue, prepay and reborrow Loans as set forth herein without premium
or penalty.

      (b) Loans made by Lender shall be evidenced by one or more loan accounts
or records maintained by Lender in the ordinary course of business. Upon the
request of Lender, the Loans may be evidenced by one or more notes, instead of
or in addition to loan accounts. Lender may attach schedules to its note(s) and
endorse thereon the date, amount and maturity of its Loans and payments with
respect thereto. Such notes, loan accounts and records shall be prima facie
evidence absent demonstrable error of the amount of such Loans and payments

                                      -16-
<PAGE>

thereon. Any failure so to record or any error in doing so shall not, however,
limit or otherwise affect the obligation of Borrower to pay any amount owing
with respect to the Loans.

      2.02 BORROWINGS, CONVERSIONS AND CONTINUATIONS OF LOANS.

      (a) Borrower may irrevocably request a borrowing, Conversion or
Continuation of Loans on any Business Day in a Minimum Amount therefor by
delivering a Request for Extension of Credit therefor by Requisite Notice to
Lender not later than the Requisite Time therefor. All borrowings, Conversions
and Continuations of Loans shall constitute Base Rate Loans unless properly and
timely otherwise designated as set forth in the prior sentence.

      (b) Lender shall promptly notify Borrower of the interest rate applicable
to any Offshore Rate Loan upon determination of same (or upon Borrower's request
with respect to Offshore Rate Loans which Borrower is considering). Lender shall
from time to time notify Borrower of any change in its prime rate used in
determining the Base Rate promptly following the public announcement of such
change. Upon satisfaction of the applicable conditions set forth in Section 4,
all funds shall be credited in immediately available funds to Borrower.

      (c) Except as otherwise provided herein, an Offshore Rate Loan may be
Continued or Converted only on the last day of the Interest Period for such
Offshore Rate Loan. During the existence of a Default or Event of Default, no
Loans may be requested as, Converted into or Continued as Offshore Rate Loans.

      (d) If a Loan is to be made on the same date that another Loan is due and
payable, Borrower or Lender, as the case may be, shall, unless Lender otherwise
requests, make available the net amount of funds giving effect to both such
Loans and the effect for purposes of this Agreement shall be the same as if
separate transfers of funds had been made with respect to each such Loan.

      2.03 PREPAYMENTS.

      (a) Upon Requisite Notice to Lender not later than the Requisite Time
therefor, Borrower may at any time and from time to time voluntarily prepay
Loans in part in the Minimum Amount therefor or in full without premium or
penalty. Any prepayment of an Offshore Rate Loan shall be accompanied by all
accrued interest thereon, together with the costs set forth in Section 3.05.

      (b) If for any reason the Outstanding Obligations exceed the Commitment as
in effect or as reduced or because of any limitation set forth in this Agreement
or otherwise, Borrower shall immediately prepay Loans in an aggregate amount
equal to such excess.

      2.04 REDUCTION OR TERMINATION OF COMMITMENT.

      (a) Upon Requisite Notice to Lender not later than the Requisite Time
therefor, Borrower may at any time and from time to time, without premium or
penalty, permanently and irrevocably reduce the Commitment in a Minimum Amount
therefor to an amount not less than the Outstanding Obligations at such time or
terminate the Commitment. Any such reduction or

                                      -17-
<PAGE>

termination shall be accompanied by payment of all accrued and unpaid Commitment
fees with respect to the portion of the Commitment being reduced or terminated.

      (b) On the date of receipt of the Net Securities Proceeds from the
issuance of any Indebtedness of Borrower or any of its Subsidiaries (other than
Indebtedness permitted pursuant to Sections 7.01 (a)-(m)), the Commitment shall
be permanently reduced in an aggregate amount equal to such Net Securities
Proceeds.

      2.05 PRINCIPAL AND INTEREST.

      (a) Except as otherwise provided hereunder, if not sooner paid, Borrower
agrees to pay the outstanding principal amount of each Loan on the Maturity
Date.

      (b) Subject to subsection (c) below, and unless otherwise specified
herein, Borrower shall pay interest on the unpaid principal amount of each Loan
(before and after default, before and after maturity, before and after judgment,
and before and after the commencement of any proceeding under any Debtor Relief
Laws) from the date borrowed until paid in full (whether by acceleration or
otherwise) on each Applicable Payment Date at a rate per annum equal to the
interest rate determined in accordance with the definition of such type of Loan,
plus, to the extent applicable in each case, the Applicable Amount for such type
of Loan.

      (c) If any amount payable by Borrower under any Loan Document is not paid
when due (after taking into account any applicable grace, notice and cure
periods), it shall thereafter bear interest (after as well as before entry of
judgment thereon to the extent permitted by law) at a fluctuating interest rate
per annum at all times equal to the Default Rate to the fullest extent permitted
by applicable Law. Accrued and unpaid interest on past due amounts (including
interest on past due interest) shall be payable upon demand.

      2.06 FEES.

      (a) COMMITMENT FEE. Borrower shall pay to Lender a Commitment fee equal to
the Applicable Amount times the actual daily amount by which the Commitment
exceeds the Outstanding Obligations. The Commitment fee shall accrue at all
times from the Closing Date until the Maturity Date and shall be payable
quarterly in arrears on each Applicable Payment Date. The Commitment fee shall
be calculated quarterly in arrears, and if there is any change in the Applicable
Amount during any quarter, the actual daily amount shall be computed and
multiplied by the Applicable Amount separately for each period during such
quarter that such Applicable Amount was in effect. The Commitment fee shall
accrue at all times, including at any time during which one or more conditions
in Section 4 are not met.

      (b) ARRANGEMENT FEE. On the Closing Date, Borrower shall pay to Lender an
upfront fee in an amount equal to $100,000. Such upfront fee is for the credit
facilities committed by Lender under this Agreement and are fully earned on the
date paid.

      2.07 COMPUTATION OF INTEREST AND FEES. Computation of interest on Base
Rate Loans when the Base Rate is determined by Lender's "prime rate" shall be
calculated on the basis of a year of 365 or 366 days, as the case may be, and
the actual number of days elapsed. Computation of all other types of interest
and all fees shall be calculated on the basis of a year of

                                      -18-
<PAGE>

360 days and the actual number of days elapsed which results in a higher yield
to Lender than a method based on a year of 365 or 366 days. Interest shall
accrue on each Loan for the day on which the Loan is made, and shall not accrue
on a Loan, or any portion thereof, for the day on which the Loan or such portion
is paid, provided that any Loan that is repaid on the same day on which it is
made shall bear interest for one day.

      2.08 MAKING PAYMENTS.

      (a) Except as otherwise provided herein, all payments by Borrower shall be
made to Lender at its Lending Office, and all payments by Lender shall be made
to Lender in the deposit account from time to time designated by Borrower to
Lender, in each case not later than the Requisite Time for such type of payment.
All payments received after such Requisite Time shall be deemed received on the
next succeeding Business Day. All payments shall be made in immediately
available funds in lawful money of the United States of America. All payments by
Borrower shall be made without condition or deduction for any counterclaim,
defense, recoupment or setoff.

      (b) Subject to the definition of "Interest Period," if any payment to be
made by Borrower shall come due on a day other than a Business Day, payment
shall instead be considered due on the next succeeding Business Day, and such
extension of time shall be reflected in computing interest and fees.

      2.09 FUNDING SOURCES. Nothing in this Agreement shall be deemed to
obligate Lender to obtain the funds for any Loan in any particular place or
manner or to constitute a representation by Lender that it has obtained or will
obtain the funds for any Loan in any particular place or manner.

                                   SECTION 3.

                     TAXES, YIELD PROTECTION AND ILLEGALITY

      3.01 TAXES.

      (a) Any and all payments by Borrower to or for the account of Lender under
any Loan Document shall be made free and clear of and without deduction for any
and all taxes, duties, levies, imposts, deductions, assessments, fees,
withholdings or similar charges, and all liabilities with respect thereto,
excluding taxes imposed on or measured by its net income, and franchise taxes
imposed on it (in lieu of net income taxes), by the jurisdiction (or any
political subdivision thereof) under the Laws of which Lender is organized or
maintains a lending office (all such non-excluded taxes, duties, levies,
imposts, deductions, assessments, fees, withholdings or similar charges, and
liabilities being hereinafter referred to as "Taxes"). If Borrower shall be
required by any Laws to deduct any Taxes from or in respect of any sum payable
under any Loan Document to Lender, (i) the sum payable shall be increased as
necessary so that after making all required deductions (including deductions
applicable to additional sums payable under this Section), Lender receives an
amount equal to the sum it would have received had no such deductions been made,
(ii) Borrower shall make such deductions, (iii) Borrower shall pay the full
amount deducted to the relevant taxation authority or other authority in
accordance with

                                      -19-
<PAGE>

applicable Laws, and (iv) within 30 days after the date of such payment,
Borrower shall furnish to Lender the original or a certified copy of a receipt
evidencing payment thereof.

      (b) In addition, Borrower agrees to pay any and all stamp, court or
documentary taxes and any other excise or property taxes or charges or similar
levies which arise from any payment made under any Loan Document or from the
execution, delivery, performance, enforcement or registration of, or otherwise
with respect to, any Loan Document (hereinafter referred to as "Other Taxes").

      (c) If Borrower shall be required to deduct or pay any Taxes or Other
Taxes from or in respect of any sum payable under any Loan Document to Lender,
Borrower shall also pay to Lender, at the time interest is paid, such additional
amount that Lender specifies as necessary to preserve the after-tax yield (after
factoring in all taxes, including taxes imposed on or measured by net income)
Lender would have received if such Taxes or Other Taxes had not been imposed.

      (d) Borrower agrees to indemnify Lender for the full amount of Taxes and
Other Taxes (including any Taxes or Other Taxes imposed or asserted by any
jurisdiction on amounts payable under this Section) paid by Lender, amounts
payable under Section 3.01(c) and any liability (including penalties, interest
and expenses) arising therefrom or with respect thereto.

      (e) Lender is a national banking association organized under the laws of
the United States of America and is a United States person as defined under
Section 7701(a)(30) of the Code.

      (f) If any Lender is organized under the laws of any jurisdiction other
than the United States of America or any state or other political subdivision
thereof (for purposes of this Section 3.01(f), a "NON-US LENDER"), such Non-US
Lender shall deliver to Borrower, on or prior to the Closing Date, and at such
other times as may be necessary in the determination of Borrower (in the
reasonable exercise of its discretion), two original copies of IRS Form W-8BEN
or W-8ECI (or any successor forms) properly completed and duly executed by
Lender, or, in the case of a Non-US Lender claiming exemption from United States
federal withholding tax under Section 871(h) or 881(c) of the Code with respect
to payments of "portfolio interest," a form W-8BEN.

      Each Non-US Lender hereby agrees, from time to time after the initial
delivery by such Lender of such forms, whenever a lapse in time or change in
circumstances renders such forms, certificates or other evidence so delivered
obsolete or inaccurate in any material respect, that such Lender shall promptly
(i) deliver to Borrower two original copies of renewals, amendments or
additional or successor forms, properly completed and duly executed by such
Lender, together with any other certificate or statement of exemption required
in order to confirm or establish that such Lender is not subject to United
States withholding tax with respect to payments to such Lender under the Loan
Documents, or (ii) notify Borrower of its inability to deliver any such forms,
certificates or other evidence.

      Borrower shall not be required to pay any additional amount to any Non-US
Lender under this Section 3.01 if such Lender shall have failed to satisfy the
requirements of this subsection (f); provided that if such Lender shall have
satisfied the requirements of this subsection (f) on the date such Lender became
a Lender, nothing in this subsection (f) shall

                                      -20-
<PAGE>

relieve Borrower of its obligation to pay any amounts pursuant to Section 3.01
in the event that, as a result of any change in any applicable law, treaty or
governmental rule, regulation or order, or any change in the interpretation,
administration or application thereof, such Lender is no longer properly
entitled to deliver forms, certificates or other evidence at a subsequent date
establishing the fact that such Lender is not subject to withholding as
described in this subsection (f).

      3.02 ILLEGALITY. If Lender determines that any Laws have made it unlawful,
or that any Governmental Authority has asserted that it is unlawful, for Lender
or its Lending Office to make, maintain or fund Offshore Rate Loans, or
materially restricts the authority of Lender to purchase or sell, or to take
deposits of, Dollars in the applicable offshore Dollar market, or to determine
or charge interest rates based upon the Offshore Rate, then, on notice thereof
by Lender to Borrower, any obligation of Lender to make Offshore Rate Loans
shall be suspended until Lender notifies Borrower that the circumstances giving
rise to such determination no longer exist. Upon receipt of such notice,
Borrower shall, upon demand from Lender, prepay or Convert all Offshore Rate
Loans, either on the last day of the Interest Period thereof, if Lender may
lawfully continue to maintain such Offshore Rate Loans to such day, or
immediately, if Lender may not lawfully continue to maintain such Offshore Rate
Loans. Lender agrees to designate a different Lending Office if such designation
will avoid the need for such notice and will not, in the good faith judgment of
Lender, otherwise be materially disadvantageous to Lender.

      3.03 INABILITY TO DETERMINE OFFSHORE RATE. If, in connection with any
Request for Extension of Credit involving any Offshore Rate Loan, Lender
determines that (a) Dollar deposits are not being offered to banks in the
applicable offshore dollar market for the applicable amount and Interest Period
of the requested Offshore Rate Loan, (b) adequate and reasonable means do not
exist for determining the underlying interest rate for such Offshore Rate Loan,
or (c) such underlying interest rate does not adequately and fairly reflect the
cost to Lender of funding such Offshore Rate Loan, Lender shall promptly notify
Borrower. Thereafter, the obligation of Lender to make or maintain such Offshore
Rate Loan shall be suspended until Lender revokes such notice. Upon receipt of
such notice, Borrower may revoke any pending request for an Offshore Rate Loan
or, failing that, be deemed to have converted such request into a request for a
Base Rate Loan in the amount specified therein.

      3.04 INCREASED COST AND REDUCED RETURN; CAPITAL ADEQUACY.

      (a) If Lender determines that any Law or change therein or in the
interpretation or administration thereof, in each case that becomes effective
after the date hereof:

            (i) subject Lender to any Tax, duty, or other charge with respect to
      any Offshore Rate Loans or its obligation to make Offshore Rate Loans, or
      change the basis on which taxes are imposed on any amounts payable to
      Lender under this Agreement in respect of any Offshore Rate Loans;

            (ii) shall impose or modify any reserve, special deposit, or similar
      requirement (other than the reserve requirement utilized in the
      determination of the Offshore Rate)

                                      -21-
<PAGE>

      relating to any extensions of credit or other assets of, or any deposits
      with or other liabilities or commitments of, Lender (including the
      Commitment); or

            (iii) shall impose on Lender or on the offshore interbank market any
      other condition affecting this Agreement or any of such extensions of
      credit or liabilities or commitments;

and the result of any of the foregoing is to increase the cost to Lender of
making, Converting into, Continuing, or maintaining any Offshore Rate Loans or
to reduce any sum received or receivable by Lender under this Agreement with
respect to any Offshore Rate Loans, then from time to time upon demand of
Lender, Borrower shall pay to Lender such additional amounts as will compensate
Lender for such increased cost or reduction.

      (b) If Lender determines that any change in or the interpretation of any
Laws have the effect of reducing the rate of return on the capital of Lender or
compliance by Lender (or its Lending Office) or any corporation controlling
Lender as a consequence of Lender's obligations hereunder (taking into
consideration its policies with respect to capital adequacy and Lender's desired
return on capital), then from time to time upon demand of Lender, Borrower shall
pay to Lender such additional amounts as will compensate Lender for such
reduction.

      3.05 BREAKFUNDING COSTS. Upon demand of Lender from time to time, Borrower
shall promptly compensate Lender for and hold Lender harmless from any loss,
cost or expense incurred by it as a result of:

      (a) any Continuation, Conversion, payment or prepayment of any Loan other
than a Base Rate Loan on a day other than the last day of the Interest Period
for such Loan (whether voluntary, mandatory, automatic, by reason of
acceleration, or otherwise); or

      (b) any failure by Borrower (for a reason other than the failure of Lender
to make a Loan) to prepay, borrow, Continue or Convert any Loan other than a
Base Rate Loan on the date or in the amount notified by Borrower; including any
loss of anticipated profits and any loss or expense arising from the liquidation
or reemployment of funds obtained by it to maintain such Loan or from fees
payable to terminate the deposits from which such funds were obtained. Borrower
shall also pay any customary administrative fees charged by Lender in connection
with the foregoing.

      3.06 MATTERS APPLICABLE TO ALL REQUESTS FOR COMPENSATION. A certificate of
Lender claiming compensation under this Section 3 and setting forth the
additional amount or amounts to be paid to it hereunder shall be prima facie
evidence of the amount thereof absent demonstrable error. In determining such
amount, Lender may use any reasonable averaging and attribution methods. For
purposes of this Section 3, Lender shall be deemed to have funded each Offshore
Rate Loan at the Offshore Base Rate used in determining the Offshore Rate for
such Loan by a matching deposit or other borrowing in the applicable offshore
interbank market, whether or not such Offshore Rate Loan was in fact so funded.
Lender agrees that it will use reasonable efforts to make, fund or maintain
Offshore Rate Loans through another lending office of Lender if (i) as a result
thereof the additional amounts that would otherwise be required to be paid to
Lender pursuant to Sections 3.01 and 3.04 would be materially reduced and (ii)
as

                                      -22-
<PAGE>

determined by Lender in its sole discretion, such action would not otherwise be
disadvantageous to Lender.

      3.07 SURVIVAL. All of Borrower's obligations under this Section 3 shall
survive termination of the Commitment and payment in full of all Obligations.

                                   SECTION 4.

                  CONDITIONS PRECEDENT TO EXTENSIONS OF CREDIT

      4.01 CONDITIONS OF INITIAL EXTENSION OF CREDIT. The obligation of Lender
to make the initial Extension of Credit hereunder is subject to satisfaction of
the following conditions precedent:

      (a) Except as otherwise specified by Lender, Lender's receipt of the
following, each of which shall be originals or facsimiles (followed promptly by
originals) unless otherwise specified, each properly executed by a Responsible
Officer of the signing Borrower, each dated on, or in the case of third-party
certificates, recently before the Closing Date and each in form and substance
satisfactory to Lender and its legal counsel:

            (i) executed counterparts of this Agreement, sufficient in number
      for distribution to Lender and Borrower;

            (ii) such certificates of resolutions or other action, incumbency
      certificates and/or other certificates of Responsible Officers of Borrower
      as Lender may require to establish the identities of and verify the
      authority and capacity of each Responsible Officer thereof authorized to
      act as a Responsible Officer thereof;

            (iii) such evidence as Lender may reasonably require to verify that
      Borrower is duly organized or formed, validly existing, in good standing
      and qualified to engage in business in each jurisdiction in which it is
      required to be qualified to engage in business, including certified copies
      of Borrower's Organization Documents, certificates of good standing and/or
      qualification to engage in business, tax status certificates, and the
      like;

            (iv) a certificate signed by a Responsible Officer of Borrower
      certifying (A) that the conditions specified in Sections 4.01(c) and (d)
      have been satisfied, and (B) that there has been no event or circumstance
      since June 30, 2001 which has a Material Adverse Effect;

            (v) an opinion of counsel to Borrower substantially in the form of
      Exhibit C; and

            (vi) such other assurances, certificates, documents, consents or
      opinions as Lender reasonably may require.

      (b) Any fees required to be paid on or before the Closing Date shall have
been paid.

                                      -23-
<PAGE>

      (c) The representations and warranties made by Borrower herein, or which
are contained in any certificate, document or financial or other statement
furnished at any time under or in connection herewith or therewith, shall be
correct on and as of the Closing Date.

      (d) Borrower shall be in compliance with all the terms and provisions of
the Loan Documents to which it is a party, and no Default or Event of Default
shall have occurred and be continuing.

      (e) Borrower shall have paid all Attorney Costs of Lender to the extent
invoiced prior to or on the Closing Date, plus such additional amounts of
Attorney Costs as shall constitute its reasonable estimate of Attorney Costs
incurred or to be incurred by it through the closing proceedings (provided that
such estimate shall not thereafter preclude final settling of accounts between
Borrower and Lender).

      4.02 CONDITIONS TO ALL EXTENSIONS OF CREDIT. In addition to any applicable
conditions precedent set forth elsewhere in this Section 4 or in Section 2, the
obligation of Lender to honor any Request for Extension of Credit is subject to
the following conditions precedent:

      (a) the representations and warranties of Borrower contained in Section 5,
or which are contained in any certificate, document or financial or other
statement furnished at any time under or in connection herewith or therewith,
shall be correct on and as of the date of such Extension of Credit, except to
the extent that such representations and warranties specifically refer to any
earlier date.

      (b) no Default or Event of Default exists, or would result from such
proposed Extension of Credit.

      (c) Lender shall have timely received a Request for Extension of Credit by
Requisite Notice by the Requisite Time therefor.

      (d) Lender shall have received, in form and substance satisfactory to it,
such other assurances, certificates, documents or consents related to the
foregoing as Lender reasonably may require.

      Each Request for Extension of Credit by Borrower shall be deemed to be a
representation and warranty that the conditions specified in Sections 4.02(a)
and (b) have been satisfied on and as of the date of such Extension of Credit.

                                   SECTION 5.

                         REPRESENTATIONS AND WARRANTIES

      Borrower represents and warrants to Lender that:

      5.01 EXISTENCE AND QUALIFICATION; POWER; COMPLIANCE WITH LAWS. Borrower is
a corporation duly organized or formed, validly existing and in good standing
under the Laws of the state of its incorporation or organization, has the power
and authority and the legal right to own and operate its properties, to lease
the properties it operates and to conduct its business, is

                                      -24-
<PAGE>

duly qualified and in good standing under the Laws of each jurisdiction where
its ownership, lease or operation of properties or the conduct of its business
requires such qualification, and is in compliance with all Laws except to the
extent that lack of qualification or noncompliance does not have a Material
Adverse Effect.

      5.02 SUBSIDIARIES. All of the Subsidiaries of Borrower as of the Closing
Date and their jurisdictions of organization are listed on Schedule 5.02 and
Schedule 5.02 correctly sets forth, as of the Closing Date, the ownership
interest of Borrower and each of its Subsidiaries in each of the Subsidiaries of
Borrower identified therein.

      5.03 POWER; AUTHORIZATION; ENFORCEABLE OBLIGATIONS. Borrower has the power
and authority and the legal right to make, deliver and perform each Loan
Document, and Borrower has power and authority to borrow hereunder and has taken
all necessary action to authorize the borrowings on the terms and conditions of
this Agreement and to authorize the execution, delivery and performance of this
Agreement and the other Loan Documents to which it is a party. No consent or
authorization of, filing with, or other act by or in respect of any Governmental
Authority or any other person is required in connection with the borrowings
hereunder or with the execution, delivery, performance, validity or
enforceability of this Agreement or any of the other Loan Documents. The Loan
Documents have been duly executed and delivered by Borrower, and constitute a
legal, valid and binding obligation of Borrower, enforceable against Borrower in
accordance with their respective terms, subject to the effect of Debtor Relief
Laws, the effect of equitable principles (whether applied in an action at law or
a suit in equity), and the other exceptions and qualifications set forth in the
legal opinion furnished to Lender pursuant to Section 4.01(a)(v).

      5.04 NO LEGAL BAR. The execution, delivery, and performance by Borrower of
the Loan Documents to which it is a party and compliance with the provisions
thereof have been duly authorized by all requisite action on the part of
Borrower and do not and will not (a) violate or conflict with, or result in a
breach of, or require any consent under (i) any Organization Documents of
Borrower or any of its Subsidiaries, (ii) any applicable Laws, rules, or
regulations or any order, writ, injunction, or decree of any Governmental
Authority or arbitrator, or (iii) any Contractual Obligation of Borrower or any
of its Subsidiaries or by which any of them or any of their property is bound or
subject, (b) constitute a default under any such agreement or instrument, or (c)
result in, or require, the creation or imposition of any Lien on any of the
properties of Borrower or any of its Subsidiaries.

      5.05 FINANCIAL STATEMENTS; NO MATERIAL ADVERSE EFFECT.

      (a) The Audited Financial Statements (i) were prepared in accordance with
GAAP consistently applied throughout the period covered thereby, except as
otherwise expressly noted therein; (ii) fairly present the financial condition
of Borrower and its Subsidiaries as of the date thereof and their results of
operations for the period covered thereby in accordance with GAAP consistently
applied throughout the period covered thereby, except as otherwise expressly
noted therein; and (iii) show all material indebtedness and other liabilities,
direct or contingent, of Borrower and its Subsidiaries as of the date thereof,
including liabilities for taxes, material commitments and Indebtedness in
accordance with GAAP consistently applied throughout the period covered thereby.

                                      -25-
<PAGE>

      (b) Since June 30, 2001, there has been no event or circumstance which has
a Material Adverse Effect.

      5.06 LITIGATION.

      Except as disclosed in Borrower's filings with the Securities and Exchange
Commission on or prior to August 15, 2001, no litigation, investigation or
proceeding of or before an arbitrator or Governmental Authority is pending or,
to the knowledge of Borrower after due and diligent investigation, threatened by
or against Borrower or any of its Subsidiaries or against any of their
properties or revenues which is reasonably likely to have a Material Adverse
Effect.

      5.07 NO DEFAULT. Neither Borrower nor any its Subsidiaries are in default
under or with respect to any Contractual Obligation which has a Material Adverse
Effect, and no Default or Event of Default has occurred and is continuing or
will result from the consummation of this Agreement or any of the other Loan
Documents, or the making of the Extensions of Credit hereunder.

      5.08 OWNERSHIP OF PROPERTY; LIENS. Borrower and its Subsidiaries have
valid fee or leasehold interests in all real property which they use in their
respective businesses, and Borrower and its Subsidiaries have good and
marketable title to all their other property, and none of such property is
subject to any Lien, except as permitted in Section 7.02.

      5.09 TAXES. Borrower and its Subsidiaries have filed all tax returns which
are required to be filed, and have paid, or made provision for the payment of,
all taxes with respect to the periods, property or transactions shown to be due
on said returns, or pursuant to any assessment received by Borrower or its
respective Subsidiaries, except (a) such taxes, if any, as are being contested
in good faith by appropriate proceedings and as to which adequate reserves have
been established and maintained, and (b) immaterial taxes; provided, however,
that in each case no material item or portion of property of Borrower or any of
its Subsidiaries is in jeopardy of being seized, levied upon or forfeited.

      5.10 MARGIN REGULATIONS; INVESTMENT COMPANY ACT; PUBLIC UTILITY HOLDING
COMPANY ACT.

      (a) Borrower is not engaged, and will not engage, principally or as one of
its important activities, in the business of extending credit for the purpose of
"purchasing" or "carrying" "margin stock" within the respective meanings of each
of the quoted terms under Regulation U of the Board of Governors of the Federal
Reserve System as now and from time to time hereafter in effect. No part of the
proceeds of any Extensions of Credit hereunder will be used for "purchasing" or
"carrying" "margin stock" as so defined or for any purpose which violates, or
which would be inconsistent with, the provisions of Regulations T, U or X of
such Board of Governors.

      (b) Neither Borrower nor any of its Subsidiaries (i) is a "holding
company," or a "subsidiary company" of a "holding company," or an "affiliate" of
a "holding company" or of a "subsidiary company" of a "holding company," within
the meaning of the Public Utility Holding Company Act of 1935, or (ii) is or is
required to be registered as an "investment company" under the Investment
Company Act of 1940.

                                      -26-
<PAGE>

      5.11 ERISA COMPLIANCE.

      (a) Each Plan is in compliance in all material respects with the
applicable provisions of ERISA, the Code and other federal or state Laws. Each
Plan that is intended to qualify under Section 401(a) of the Code has received a
favorable determination letter from the IRS or an application for such a letter
is currently being processed by the IRS with respect thereto and, to the best
knowledge of Borrower, nothing has occurred which would prevent, or cause the
loss of, such qualification. Borrower and each ERISA Affiliate have made all
required contributions to each Plan subject to Section 412 of the Code, and no
application for a funding waiver or an extension of any amortization period
pursuant to Section 412 of the Code has been made with respect to any Plan.

      (b) There are no pending or, to the best knowledge of Borrower, threatened
claims, actions or lawsuits, or action by any Governmental Authority, with
respect to any Plan that has a Material Adverse Effect. There has been no
prohibited transaction or violation of the fiduciary responsibility rules with
respect to any Plan that has a Material Adverse Effect.

      (c) (i) No ERISA Event has occurred or is reasonably expected to occur;
(ii) no Pension Plan has any Unfunded Pension Liability; (iii) neither Borrower
nor any ERISA Affiliate has incurred, or reasonably expects to incur, any
liability under Title IV of ERISA with respect to any Pension Plan (other than
premiums due and not delinquent under Section 4007 of ERISA); (iv) neither
Borrower nor any ERISA Affiliate has incurred, or reasonably expects to incur,
any liability (and no event has occurred which, with the giving of notice under
Section 4219 of ERISA, would result in such liability) under Section 4201 or
4243 of ERISA with respect to a Multiemployer Plan; and (v) neither Borrower nor
any ERISA Affiliate has engaged in a transaction that could be subject to
Section 4069 or 4212(c) of ERISA.

      5.12 INTANGIBLE ASSETS. Borrower and its Subsidiaries own, or possess the
right to use, all trademarks, trade names, copyrights, patents, patent rights,
franchises, licenses and other intangible assets that are used in the conduct of
their respective businesses as now operated except where failure to own or
possess the same has a Material Adverse Effect, and none of such items, to the
best knowledge of Borrower, conflicts with the valid trademark, trade name,
copyright, patent, patent right or intangible asset of any other Person to the
extent that such conflict has a Material Adverse Effect.

      5.13 COMPLIANCE WITH LAWS. Borrower and its Subsidiaries are in compliance
with all Laws and applicable orders of any Governmental Authority that are
applicable to it, noncompliance with which has a Material Adverse Effect.

      5.14 ENVIRONMENTAL COMPLIANCE. Existing Environmental Laws and claims
alleging potential liability or responsibility for violation of any
Environmental Law on the respective businesses, operations and properties of
Borrower and its Subsidiaries do not, individually or in the aggregate, have a
Material Adverse Effect.

      5.15 INSURANCE. The properties of Borrower and its Subsidiaries are
insured with financially sound and reputable insurance companies not Affiliates
of Borrower, in such

                                      -27-
<PAGE>

amounts, with such deductibles and covering such risks as Borrower has
determined in good faith to be necessary.

      5.16 DISCLOSURE. No statement, information, report, representation, or
warranty made by Borrower in any Loan Document or furnished to Lender in
connection with any Loan Document contains any untrue statement of a material
fact or omits to state any material fact necessary to make the statements herein
or therein not misleading, and Borrower has disclosed to Lender all facts and
circumstances which can reasonably be expected to have a Material Adverse
Effect.

                                   SECTION 6.

                              AFFIRMATIVE COVENANTS

      So long as any Obligation remains unpaid or unperformed, or any portion of
the Commitment remains outstanding, Borrower shall, and shall (except in the
case of Borrower's reporting covenants), cause each Subsidiary to:

      6.01 FINANCIAL STATEMENTS. Deliver to Lender in form and detail
satisfactory to Lender:

      (a) as soon as available, but in any event within 100 days after the end
of each fiscal year of Borrower, a consolidated balance sheet of Borrower and
its Subsidiaries as at the end of such fiscal year, and the related consolidated
statements of income and cash flows for such fiscal year, setting forth in each
case in comparative form the figures for the previous fiscal year, all in
reasonable detail, audited and accompanied by an opinion of an independent
certified public accountant of nationally recognized standing reasonably
acceptable to Lender, which opinion shall be prepared in accordance with GAAP
and shall not be subject to any qualifications or exceptions as to the scope of
the audit nor to any qualifications and exceptions not reasonably acceptable to
Lender; and

      (b) as soon as available, but in any event within 50 days after the end of
each of the first three fiscal quarters of each fiscal year of Borrower, a
consolidated balance sheet of Borrower and its Subsidiaries as at the end of
such fiscal quarter, and the related consolidated statements of income and cash
flows for such fiscal quarter and for the portion of Borrower's fiscal year then
ended, setting forth in each case in comparative form the figures for the
corresponding fiscal quarter of the previous fiscal year and the corresponding
portion of the previous fiscal year, all in reasonable detail and certified by a
Responsible Officer of Borrower as fairly presenting the financial condition,
results of operations and cash flows of Borrower and its Subsidiaries in
accordance with GAAP, subject only to normal year-end audit adjustments and the
absence of footnotes.

      6.02 CERTIFICATES, NOTICES AND OTHER INFORMATION. Deliver to Lender in
form and detail satisfactory to Lender:

      (a) concurrently with the delivery of the financial statements referred to
in Sections 6.01(a) and (b), a duly completed Compliance Certificate signed by a
Responsible Officer of Borrower;

                                      -28-
<PAGE>

      (b) promptly after reasonable request by Lender, copies of any detailed
audit reports and management letters or recommendations with respect to the
annual financial statements delivered to Lender pursuant to Section 6.01(a)
submitted to the board of directors (or the audit committee of the board of
directors) of Borrower by independent accountants in connection with the audit
of the accounts or books of Borrower or any Subsidiary;

      (c) promptly after the same are available, copies of each annual report,
proxy or financial statement or other report or communication sent to the
stockholders of Borrower, and copies of all annual and quarterly reports which
Borrower may file or be required to file with the Securities and Exchange
Commission under Sections 13 or 15(d) of the Securities Exchange Act of 1934,
and not otherwise required to be delivered to Lender pursuant hereto;

      (d) promptly after the occurrence thereof becomes known or should have
become known to a Responsible Officer or the general counsel of Borrower, notice
of any Default or Event of Default;

      (e) notice of any material change in accounting policies or financial
reporting practices by Borrower or any Subsidiary;

      (f) promptly after the commencement thereof becomes known or should have
become known to a Responsible Officer or the general counsel of Borrower, notice
of any litigation, investigation or proceeding against Borrower or any
Subsidiary where the amount sought exceeds the Threshold Amount, or in which
injunctive relief or similar relief is sought, which relief is reasonably likely
to have a Material Adverse Effect;

      (g) promptly after the occurrence thereof becomes known to a Responsible
Officer or the general counsel of Borrower, notice of any Reportable Event with
respect to any Plan or the intent to terminate any Plan, or the institution of
proceedings or the taking or expected taking of any other action to terminate
any Plan or withdraw from any Plan;

      (h) promptly after the occurrence thereof becomes known to a Responsible
Officer or the general counsel of Borrower, notice of any Material Adverse
Effect; and

      (i) promptly, such other data and information as from time to time may be
reasonably requested by Lender.

      Each notice under Section 6.02 (d), (f), (g), or (h) pursuant to this
Section shall be accompanied by a statement of a Responsible Officer of Borrower
setting forth details of the occurrence referred to therein and stating what
action Borrower has taken and proposes to take with respect thereto.

      6.03 PAYMENT OF TAXES. Pay and discharge when due all taxes, assessments,
and governmental charges, Liens or levies imposed on Borrower or its
Subsidiaries or on its income or profits or any of its property, except for any
such tax, assessment, charge, or levy permitted under Section 7.02(c) or
excepted from Section 5.09.

                                      -29-
<PAGE>

      6.04 PRESERVATION OF EXISTENCE. Preserve and maintain its existence,
licenses, permits, rights, franchises and privileges necessary or desirable in
the normal conduct of its business, except where failure to do so does not have
a Material Adverse Effect.

      6.05 MAINTENANCE OF PROPERTIES. Maintain, preserve and protect all of its
material properties and equipment necessary in the operation of its business in
good order and condition, subject to wear and tear in the ordinary course of
business, and not permit any waste of its properties.

      6.06 MAINTENANCE OF INSURANCE. Maintain liability and casualty insurance
with financially sound and reputable insurance companies in such amounts with
such deductibles and against such risks as Borrower has determined in good faith
to be necessary.

      6.07 COMPLIANCE WITH LAWS.

      (a) Comply with the requirements of all applicable Laws and orders of any
Governmental Authority, noncompliance with which has a Material Adverse Effect.

      (b) Conduct its operations and keep and maintain its property in
compliance with all Environmental Laws, noncompliance with which has a Material
Adverse Effect.

      6.08 INSPECTION RIGHTS. At any time during regular business hours and as
often as reasonably requested, upon reasonable prior notice, permit Lender, or
any employee, agent or representative thereof upon execution of Borrower's
standard confidentiality agreement for visitors and contractors and at Lender's
sole cost and expense, to examine, audit and make copies and abstracts from the
Borrower's records and books of account and to visit and inspect its properties
and to discuss its affairs, finances and accounts with any of its officers and
key employees for the sole purpose of determining compliance with and monitoring
the Commitment, and, upon request, furnish promptly to Lender true copies of all
financial information and internal management reports made available to its
senior management.

      6.09 KEEPING OF RECORDS AND BOOKS OF ACCOUNT. Keep adequate records and
books of account reflecting all financial transactions in conformity with GAAP,
consistently applied, and in material conformity with all applicable
requirements of any Governmental Authority having regulatory jurisdiction over
Borrower or the applicable Subsidiary.

      6.10 COMPLIANCE WITH ERISA. Cause, and cause each of its ERISA Affiliates
to: (a) maintain each Plan in compliance in all material respects with the
applicable provisions of ERISA, the Code and other federal or state law; (b)
cause each Plan which is qualified under Section 401(a) of the Code to maintain
such qualification; and (c) make all required contributions to any Plan subject
to Section 412 of the Code.

      6.11 COMPLIANCE WITH AGREEMENTS. Promptly and fully comply with all
Contractual Obligations to which any one or more of them is a party, except for
any such Contractual Obligations (a) the performance of which would cause a
Default or Event of Default, (b) then being contested by any of them in good
faith by appropriate proceedings, or (c) if the failure to comply therewith does
not have a Material Adverse Effect.

                                      -30-
<PAGE>

      6.12 USE OF PROCEEDS. Use the proceeds of Extensions of Credit for lawful
general corporate purposes not otherwise in contravention of this Agreement.

                                   SECTION 7.

                               NEGATIVE COVENANTS

      So long as any Obligations remain unpaid or unperformed, or any portion of
the Commitment remains outstanding, Borrower shall not, nor shall it permit any
Subsidiary to, directly or indirectly do any of the following without the
written consent of Lender:

      7.01 INDEBTEDNESS. Create, incur, assume or suffer to exist any
Indebtedness, except:

      (a) Indebtedness under the Loan Documents;

      (b) Indebtedness outstanding on the date hereof and listed on Schedule
7.01 and any refinancings, refundings, renewals or extensions thereof, provided
that the amount of such Indebtedness is not increased at the time of such
refinancing, refunding, renewal or extension except by an amount equal to the
premium or other amount paid, and fees and expenses incurred, in connection with
such refinancing and by an amount equal to any utilized commitments thereunder;

      (c) intercompany Guaranty Obligations of Borrower or any Subsidiaries
guarantying Indebtedness otherwise permitted hereunder of Borrower or any
wholly-owned Subsidiary;

      (d) Indebtedness arising from the honoring of a check, draft or similar
instrument against insufficient funds or the endorsement of negotiable
instruments for deposit or collection in the ordinary course of business;

      (e) Ordinary Course Swap Obligations;

      (f) trade and other accounts payable in the ordinary course of business in
accordance with customary trade terms and which are not overdue for a period of
more than 90 days;

      (g) deferred taxes;

      (h) Indebtedness of ServerWorks in an aggregate principal amount not to
exceed $10,000,000 at any time;

      (i) Indebtedness of Borrower to any of its Subsidiaries and of any
Subsidiary to Borrower or any other Subsidiary;

      (j) Indebtedness that is (i) convertible into the capital stock of
Borrower, (ii) subordinated in right of payment to the Obligations and (iii) due
after the Maturity Date;

      (k) Unsecured Indebtedness in an aggregate principal amount not to exceed
$20,000,000 at any time;

                                      -31-
<PAGE>

      (l) Indebtedness secured by Liens permitted pursuant to Section 7.02 (i)
and any refinancings, refundings, renewals or extensions thereof, provided that
the amount of such Indebtedness is not increased at the time of such
refinancing, refunding, renewal or extension except by an amount equal to the
premium or other amount paid, and fees and expenses incurred, in connection with
such refinancing and by an amount equal to any utilized commitments thereunder;;

      (m) Indebtedness of any Person assumed by Borrower or any of its
Subsidiaries, or Indebtedness of any Person that becomes a Subsidiary of
Borrower, in each case as a result of any Acquisition of such Person permitted
under Section 7.05 and any refinancings, refundings, renewals or extensions of
such Indebtedness, provided that the amount of such Indebtedness is not
increased at the time of such refinancing, refunding, renewal or extension
except by an amount equal to the premium or other amount paid, and fees and
expenses incurred, in connection with such refinancing and by an amount equal to
any utilized commitments thereunder; provided further that such Indebtedness is
not incurred in connection with any such Acquisition or in anticipation thereof;
and

      (n) Unsecured Indebtedness to no more than two lenders that is entirely
used to permanently reduce the Commitment pursuant to Section 2.04(b); provided
that, to the extent required by Section 2.03(b), Borrower also prepays the Loans
if necessary as a consequence of such reduction in the Commitment.

      7.02 LIENS AND NEGATIVE PLEDGES. Incur, assume or suffer to exist, any
Lien or Negative Pledge upon any of its property, assets or revenues, whether
now owned or hereafter acquired, except:

      (a) Liens pursuant to any Loan Document;

      (b) Liens and Negative Pledges existing on the date hereof and listed on
Schedule 7.01 and any renewals or extensions thereof, provided that the property
covered thereby is not increased and any renewal or extension of the obligations
secured or benefited thereby is permitted by Section 7.01(b);

      (c) Liens for taxes or other governmental charges not yet due or which are
being contested in good faith and by appropriate proceedings, if adequate
reserves with respect thereto are maintained on the books of the applicable
Person in accordance with GAAP;

      (d) carriers', warehousemen's, mechanics', materialmen's, repairmen's or
other like Liens arising in the ordinary course of business which are not
overdue for a period of more than 60 days or which are being contested in good
faith and by appropriate proceedings, if adequate reserves with respect thereto
are maintained on the books of the applicable Person;

      (e) pledges or deposits in connection with worker's compensation,
unemployment insurance and other social security legislation or statutory
obligations in the ordinary course of business;

                                      -32-
<PAGE>

      (f) deposits to secure the performance of bids, trade contracts (other
than for borrowed money), leases, statutory obligations, surety and appeal
bonds, performance bonds and other obligations of a like nature incurred in the
ordinary course of business;

      (g) easements, rights-of-way, restrictions and other similar encumbrances
affecting real property which, in the aggregate, are not substantial in amount,
and which do not in any case materially detract from the value of the property
subject thereto or materially interfere with the ordinary conduct of the
business of the applicable Person;

      (h) attachment, judgment or other similar Liens arising in connection with
litigation or other legal proceedings (and not otherwise a Default hereunder) in
the ordinary course of business that are currently being contested in good faith
by appropriate proceedings, adequate reserves have been set aside and no
material property is subject to a material risk of loss or forfeiture or the
claims in respect of such Liens are fully covered by insurance (subject to
ordinary and customary deductibles);

      (i) Liens on any asset existing at the time of acquisition of such asset
by Borrower or a Subsidiary, or Liens to secure the payment of all or any part
of the purchase price of an asset upon the acquisition of such asset by Borrower
or a Subsidiary; provided that the Lien shall apply only to the asset so
acquired;

      (j) Liens securing Indebtedness permitted under Section 7.01(m); provided
that such Liens apply only to the assets acquired in connection with the
permitted Acquisition or the assets of the Person that becomes a Subsidiary of
Borrower as a result of the permitted Acquisition; and

      (k) Replacements, extensions and renewals of Liens permitted under
subsections (i) and (j) of this Section 7.02.

      7.03 FUNDAMENTAL CHANGES. Merge or consolidate with or into any Person or
liquidate, wind-up or dissolve itself, or permit or suffer any liquidation or
dissolution or sell all or substantially all of its assets, except, that so long
as no Default or Event of Default exists or would result therefrom:

      (a) Borrower may merge with any Person, so long as Borrower is the
continuing or surviving Person;

      (b) any Subsidiary may merge with (i) Borrower provided that Borrower
shall be the continuing or surviving corporation, (ii) any other Subsidiary, and
(iii) any other Person, so long as such other Person will, as a result of making
such merger and all other contemporaneous related transactions, become a
Subsidiary; provided that when any wholly-owned Subsidiary is merging into
another Subsidiary, the wholly-owned Subsidiary shall be the continuing or
surviving Person;

      (c) any Subsidiary may sell all or substantially all of its assets (upon
voluntary liquidation or otherwise), to Borrower or to another Subsidiary;
provided that when any wholly-owned Subsidiary is selling all or substantially
all of its assets to another Subsidiary, the Subsidiary acquiring such assets
shall be a wholly-owned Subsidiary; and

                                      -33-
<PAGE>

      (d) any Subsidiary which is not a Material Subsidiary may liquidate,
wind-up or dissolve itself or suffer any liquidation or dissolution.

      7.04 DISPOSITIONS. Make any Dispositions, except:

      (a) Dispositions of obsolete or worn out property, whether now owned or
hereafter acquired, in the ordinary course of business;

      (b) Dispositions of Cash, Cash Equivalents, inventory and other property
in the ordinary course of business;

      (c) Dispositions of assets or property to the extent that such property is
exchanged for credit against the purchase price of similar replacement property,
or the proceeds of such sale are reasonably promptly applied to the purchase
price of such replacement property or where Borrower or any Subsidiary determine
in good faith that the failure to replace such equipment will not be detrimental
to the business of Borrower or such Subsidiary; and

      (d) Dispositions of assets or property by any Subsidiary to Borrower or
another wholly-owned Subsidiary; provided, however, that no such Disposition
pursuant to subsections (a), (b), or (c) above shall be for less than the fair
market value of the property being disposed of; and

      (e) Dispositions permitted by Section 7.03.

      7.05 INVESTMENTS; ACQUISITIONS. Make any Investments or Acquisitions,
except:

      (a) Investments existing on the date hereof and disclosed to Lender in
writing on or prior to the date hereof;

      (b) Cash and Cash Equivalents;

      (c) loans and advances to officers, directors and employees of Borrower
and Subsidiaries;

      (d) Investments of any Subsidiary in Borrower or another Subsidiary;

      (e) Investments of Borrower in its Subsidiaries;

      (e) extensions of credit to customers or suppliers of Borrower and
Subsidiaries in the ordinary course of business and any Investments received in
satisfaction or partial satisfaction thereof;

      (f) Guaranty Obligations permitted by Section 7.01;

      (g) Investments permitted by Section 7.03;

      (h) Acquisitions, provided that (i) the total purchase price is paid
solely in shares of the capital stock of Borrower and (ii) Borrower shall have
delivered a Compliance Certificate to

                                      -34-
<PAGE>

Lender demonstrating that, after giving effect to such proposed Acquisition,
Borrower shall be in compliance with the requirements of Section 7.12;

      (i) Long Term Cash Equivalents; and

      (j) additional Investments and Acquisitions not exceeding $250,000,000 in
the aggregate.

      7.06 RESTRICTED PAYMENTS. Make any Restricted Payments except:

      (a) redemptions or other repurchases of Borrower's capital stock, stock
equivalents or stock options from departing employees, directors or officers of
Borrower or any Subsidiary;

      (b) purchases of previously unissued or treasury capital stock of Borrower
by a Subsidiary for share exchanges arising from Acquisitions; and

      (c) prepayments, repayments, redemptions, defeasances or other
acquisitions or retirements for value of any Indebtedness permitted to be
incurred under Section 7.01(j); provided, however, that, five days prior to any
such proposed prepayment, repayment, redemption, defeasance or other acquisition
or retirement, Borrower delivers to Lender a Compliance Certificate
demonstrating in reasonable detail that (i) no Default or Event of Default
exists and (ii) no Event of Default would result under Section 7.12 from the
proposed prepayment, repayment, redemption, defeasance or other acquisition or
retirement.

      7.07 ERISA. At any time engage in a transaction which could be subject to
Section 4069 or 4212(c) of ERISA, or permit any Pension Plan to (a) engage in
any non-exempt "prohibited transaction" (as defined in Section 4975 of the
Code); (b) fail to comply with ERISA or any other applicable Laws; or (c) incur
any material "accumulated funding deficiency" (as defined in Section 302 of
ERISA), which, with respect to each event listed above, has a Material Adverse
Effect.

      7.08 CHANGE IN NATURE OF BUSINESS. Make any change in the nature of the
business of Borrower as conducted and as proposed to be conducted as of the date
hereof.

      7.09 TRANSACTIONS WITH AFFILIATES. Enter into any transaction of any kind
with any Affiliate of Borrower other than (i) arm's-length transactions with
Affiliates that are otherwise permitted hereunder and (ii) transactions with any
Person who is an Affiliate of Borrower solely as a result of Borrower or any
Subsidiary having an investment in such Person.

      7.10 HOSTILE ACQUISITIONS. Use the proceeds of any Loan in connection with
the acquisition of a voting interest of 5% or more in any Person if such
acquisition is opposed by the board of directors or management of such Person.

      7.11 MARGIN REGULATIONS. Borrower shall not use the proceeds of any
Extensions of Credit hereunder for "purchasing" or "carrying" "margin stock" as
so defined or for any purpose which violates, or which would be inconsistent
with, the provisions of Regulations U or X of such Board of Governors.

                                      -35-
<PAGE>

      7.12 FINANCIAL COVENANTS.

      (a) CONSOLIDATED TANGIBLE NET WORTH. Permit Consolidated Tangible Net
Worth as of the end of any fiscal quarter of Borrower to be less than the
greater of (a) $750,000,000 or (b) the sum of (i) 80% of Consolidated Tangible
Net Worth as of June 30, 2001 and, (ii) an amount equal to 100% of the aggregate
increases in Stockholders' Equity of Borrower and its Subsidiaries after the
date hereof by reason of the issuance and sale of capital stock of Borrower
(including upon any conversion of debt securities of Borrower into such capital
stock) minus (b) the sum of (i) stock-based compensation expense and (ii) in
process research and development write offs associated with Acquisitions taken
within 90 days of the consummation thereof.

      (b) MINIMUM CONSOLIDATED LTM ADJUSTED EBITDA. Permit Consolidated LTM
Adjusted EBITDA as of the end of any fiscal quarter of Borrower for the four
consecutive fiscal quarters then ended to be less than <$125,000,000>.

      (c) QUICK RATIO. Permit the Quick Ratio as of the end of any fiscal
quarter of Borrower to be less than 1.0 to 1.0.

      7.13 CHANGE IN AUDITORS. Change the certified public accountants auditing
the books of Borrower except to another certified public accountant of
nationally recognized standing reasonably acceptable to Lender.

                                   SECTION 8.

                         EVENTS OF DEFAULT AND REMEDIES

      8.01 EVENTS OF DEFAULT. Any one or more of the following events shall
constitute an Event of Default:

      (a) Borrower fails to pay any principal on any Outstanding Obligation
(other than fees) within two days after the date when due; or

      (b) Borrower fails to pay any interest on any Outstanding Obligations, any
Commitment fees due hereunder, or any other fees or amount payable to Lender
under any Loan Document, in each case within five days after Lender notifies
Borrower that such interest, Commitment fees, fees or other amounts are due; or

      (c) Any default occurs in the observance or performance of any agreement
contained in Section 6.02(d), 6.02(e), 6.02(f), 6.02(h), 6.04, 7.03, 7.10, 7.11
or 7.12; or

      (d) Any default occurs in the observance or performance of any agreement
contained in Section 6.01, 6.02(a), 6.02(b). 6.02(c), 6.02(g), 6.02(i), 6.08,
7.01, 7.02, 7.04-7.09, or 7.13 and such default continues for three days after
Lender notifies Borrower; or

      (e) The occurrence of an Event of Default (as such term is or may
hereafter be specifically defined in any other Loan Document) under any other
Loan Document; or Borrower fails to perform or observe any other covenant or
agreement (not specified in subsection (a), (b),

                                      -36-
<PAGE>

(c) or (d) above) contained in any Loan Document on its part to be performed or
observed and such failure continues for 30 days after Lender notifies Borrower;
or

      (f) Any representation or warranty in any Loan Document or in any
certificate, agreement, instrument or other document made or delivered by
Borrower pursuant to or in connection with any Loan Document proves to have been
incorrect in any material respect when made or deemed made; or

      (g) (i) Borrower or one or more of its Subsidiaries which, alone or
together, constitute Material Subsidiaries, (x) defaults beyond applicable cure,
grace and notice periods in any payment when due of principal of or interest on
any Indebtedness (other than Indebtedness hereunder) having an aggregate
principal amount in excess of the Threshold Amount or (y) defaults beyond
applicable cure, grace and notice periods in the observance or performance of
any other agreement or condition relating to any Indebtedness (other than
Indebtedness hereunder) or contained in any instrument or agreement evidencing,
securing or relating thereto, or any other event shall occur, the effect of
which default or other event is to cause, or to permit the holder or holders of
such Indebtedness (or a trustee or agent on behalf of such holder or holders or
beneficiary or beneficiaries) to cause, with the giving of notice if required,
Indebtedness having an aggregate principal amount in excess of the Threshold
Amount to be demanded or become due (automatically or otherwise) prior to its
stated maturity, or any Guaranty Obligation in such amount to become payable or
Cash collateral in respect thereof to be demanded, or Borrower or any of its
Subsidiaries is unable or admits in writing its inability to pay its debts as
they mature, and such default continues for three days after Lender notifies
Borrower; or (ii) the occurrence under any Swap Contract of an Early Termination
Date (as defined in such Swap Contract) resulting from (x) any event of default
under such Swap Contract as to which Borrower or any Subsidiary is the
Defaulting Party (as defined in such Swap Contract) or (y) the occurrence of any
Termination Event under such Swap Contract (as defined therein) as to which
Borrower or any Subsidiary is an Affected Party (as so defined) as a result of
which, in either event, the Swap Termination Value owed by Borrower or such
Subsidiary is greater than the Threshold Amount and such Early Termination Date
shall not have been rescinded within three days after Lender notifies Borrower;
or

      (h) Any Loan Document, at any time after its execution and delivery and
for any reason other than the agreement of Lender or satisfaction in full of all
the Obligations, ceases to be in full force and effect or is declared by a court
of competent jurisdiction to be null and void, invalid or unenforceable in any
material respect; or Borrower denies that it has any or further liability or
obligation under any Loan Document, or purports to revoke, terminate or rescind
any Loan Document; or

      (i) (i) A final judgment against Borrower or any of its Subsidiaries is
entered for the payment of money in excess of the Threshold Amount, or any
non-monetary final judgment is entered against Borrower or any of its
Subsidiaries which has a Material Adverse Effect and, in each case, if such
judgment remains unsatisfied without procurement of a stay of execution within
(A) 45 calendar days after the date of entry of judgment or, (B) if earlier,
five days prior to the date of any proposed sale, or (ii) any writ or warrant of
attachment or execution or similar process is issued or levied against all or
any material part of the property of any such Person and is not released,
vacated or fully bonded within 45 calendar days after its issue or levy; or

                                      -37-
<PAGE>

      (j) Borrower or one or more of its Subsidiaries which, alone or together,
constitute Material Subsidiaries, institutes or consents to the institution of
any proceeding under Debtor Relief Laws, or makes an assignment for the benefit
of creditors; or applies for or consents to the appointment of any receiver,
trustee, custodian, conservator, liquidator, rehabilitator or similar officer
for it or for all or any material part of its property; or any receiver,
trustee, custodian, conservator, liquidator, rehabilitator or similar officer is
appointed without the application or consent of that Person and the appointment
continues undischarged or unstayed for 60 calendar days; or any proceeding under
Debtor Relief Laws relating to any such Person or to all or any part of its
property is instituted without the consent of that Person and continues
undismissed or unstayed for 60 calendar days, or an order for relief is entered
in any such proceeding; or

      (k) (i) An ERISA Event occurs with respect to a Pension Plan or
Multiemployer Plan which has resulted or could reasonably be expected to result
in liability of Borrower under Title IV of ERISA to the Pension Plan,
Multiemployer Plan or the PBGC in an aggregate amount in excess of the Threshold
Amount; (ii) the aggregate amount of Unfunded Pension Liability among all
Pension Plans at any time exceeds the Threshold Amount; or (iii) Borrower or any
ERISA Affiliate fails to pay when due, after the expiration of any applicable
grace period, any installment payment with respect to its withdrawal liability
under Section 4201 of ERISA under a Multiemployer Plan in an aggregate amount in
excess of the Threshold Amount; or

      (l) There occurs any Change of Control of Borrower.

      8.02 REMEDIES UPON EVENT OF DEFAULT. Without limiting any other rights or
remedies of Lender provided for elsewhere in this Agreement, the Loan Documents,
or by applicable Law, or in equity, or otherwise:

      (a) Upon the occurrence and during the continuance of any Event of Default
other than an Event of Default described in Section 8.01(j), Lender may
terminate the Commitment and/or declare all or any part of the unpaid principal
of all Loans, all interest accrued and unpaid thereon and all other amounts
payable under the Loan Documents to be immediately due and payable, whereupon
the same shall become and be immediately due and payable, without protest,
presentment, notice of dishonor, demand or notice of any kind, all of which are
expressly waived by Borrower.

      (b) Upon the occurrence of any Event of Default described in Section
8.01(j), the Commitment and all other obligations of Lender under the Loan
Documents shall automatically terminate without notice to or demand upon
Borrower, which are expressly waived by Borrower, and the unpaid principal of
all Loans, all interest accrued and unpaid thereon and all other amounts payable
under the Loan Documents shall be immediately due and payable, without protest,
presentment, notice of dishonor, demand or notice of any kind, all of which are
expressly waived by Borrower.

      (c) Upon the occurrence and during the continuance of any Event of
Default, Lender, without notice to (except as expressly provided for in any Loan
Document) or demand upon Borrower, which are expressly waived by Borrower
(except as to notices expressly provided for in any Loan Document), may proceed
to protect, exercise and enforce its rights and remedies

                                      -38-
<PAGE>

under the Loan Documents against Borrower and such other rights and remedies as
are provided by Law or equity.

      (d) The order and manner in which Lender's rights and remedies are to be
exercised shall be determined by Lender in its sole and absolute discretion.
Regardless of how Lender may treat payments for the purpose of its own
accounting, for the purpose of computing the Obligations hereunder, payments
shall be applied first, to costs and expenses (including Attorney Costs)
incurred by Lender, second, to the payment of accrued and unpaid interest on the
Loans to and including the date of such application, third, to the payment of
the unpaid principal of the Loans, and fourth, to the payment of all other
amounts (including fees) then owing to Lender under the Loan Documents. No
application of payments will cure any Event of Default, or prevent acceleration,
or continued acceleration, of amounts payable under the Loan Documents, or
prevent the exercise, or continued exercise, of rights or remedies of Lender
hereunder or thereunder or at Law or in equity.

                                   SECTION 9.

                                  MISCELLANEOUS

      9.01 AMENDMENTS; CONSENTS. No amendment, modification, supplement,
extension, termination or waiver of any provision of this Agreement or any other
Loan Document, no approval or consent thereunder, and no consent to any
departure by Borrower therefrom shall be effective unless in writing signed by
Lender and Borrower and each such waiver or consent shall be effective only in
the specific instance and for the specific purpose for which given.

      9.02 REQUISITE NOTICE; EFFECTIVENESS OF SIGNATURES AND ELECTRONIC MAIL.

      (a) REQUISITE NOTICE. Notices given in connection with any Loan Document
shall be delivered to the intended recipient at the number and/or address set
forth on Schedule 9.02 (or as otherwise specified from time to time by such
recipient in writing to Lender) and shall be given by (i) irrevocable written
notice or (ii) except as otherwise provided, irrevocable telephonic (not
voicemail) notice. Such notices may be delivered, must be confirmed and shall be
effective as follows:

<TABLE>
<CAPTION>
MODE OF DELIVERY       EFFECTIVE ON EARLIER OF ACTUAL RECEIPT, AND:
---------------------- -------------------------------------------------------
<S>                    <C>
Mail                   Fourth Business Day after deposit in U.S. mail, first
                       class postage pre-paid

Courier or hand
delivery               One Business Day after signed for by recipient

Telephone (not         When conversation completed (must be confirmed in
voicemail)             writing)

Facsimile              When confirmed by telephone (not voicemail)

Electronic Mail        When delivered (usage subject to subsection (c) below)
</TABLE>

                                      -39-
<PAGE>

provided, however, that notices delivered to Lender pursuant to Section 2 shall
not be effective until actually received by Lender; provided, further, that
Lender may require that any notice be confirmed or followed by a manually-signed
hardcopy thereof. Notices shall be in any form prescribed herein and, if sent by
Borrower, shall be made by a Responsible Officer of Borrower. Notices delivered
and, if required, confirmed in accordance with this subsection shall be deemed
to have been delivered by Requisite Notice.

      (b) EFFECTIVENESS OF FACSIMILE DOCUMENTS AND SIGNATURES. Loan Documents
may be transmitted and/or signed by facsimile. The effectiveness of any such
documents and signatures shall, subject to applicable Law, have the same force
and effect as manually-signed hardcopies and shall be binding on Borrower and
Lender. Lender may also require that any such documents and signatures be
confirmed by a manually-signed hardcopy thereof; provided, however, that the
failure to request or deliver the same shall not limit the effectiveness of any
facsimile document or signature.

      (c) LIMITED USAGE OF ELECTRONIC MAIL, TELEPHONE AND FACSIMILE. Facsimile
or electronic mail and internet and intranet websites may be used to distribute
routine communications, such as financial statements and other information, or
to distribute agreements and other documents to be signed by Lender and
Borrower. No other legally-binding and/or time-sensitive communication or
Request for Extension of Credit may be sent by electronic mail, facsimile or
telephone without the consent of, the intended recipient in each instance;
provided, however, that notwithstanding the foregoing, Borrower may deliver
Requests for Extension of Credit to Lender by telephone and facsimile by the
required time provided that any such telephonic notice shall be promptly
confirmed in writing by delivery by facsimile of a Request for Extension of
Credit to Lender on or before the proposed borrowing date.

      (d) RELIANCE BY LENDER. Lender shall be entitled to rely and act upon any
notices purportedly given by or on behalf of Borrower even if (i) such notices
were not made in a manner specified herein, were incomplete or were not preceded
or followed by any other notice specified herein, or (ii) the terms thereof, as
understood by the recipient, varied from any confirmation thereof. Borrower
shall indemnify Lender- from any loss, cost, expense or liability as a result of
relying on any notices purportedly given by or on behalf of Borrower.

      9.03 ATTORNEY COSTS, EXPENSES AND TAXES. Borrower agrees (a) to pay or
reimburse Lender for all reasonable and documented costs and expenses incurred
in connection with the development, preparation, negotiation and execution of
the Loan Documents, and the development, preparation, negotiation and execution
of any amendment, waiver, consent, supplement or modification to, any Loan
Documents, and any other documents prepared in connection herewith or therewith,
and the consummation and administration of the transactions contemplated hereby
and thereby, including all Attorney Costs, and (b) to pay or reimburse Lender
for all reasonable and documented costs and expenses incurred in connection with
any refinancing, restructuring, reorganization (including a bankruptcy
reorganization) and enforcement or attempted enforcement, or preservation of any
rights under any Loan Documents, and any other documents prepared in connection
herewith or therewith, or in connection with any refinancing, or restructuring
of any such documents in the nature of a "workout" or of any insolvency or
bankruptcy proceeding, including Attorney Costs. The foregoing costs and
expenses shall include all reasonable and documented search, filing, recording,
title insurance

                                      -40-
<PAGE>

and appraisal charges and fees and taxes related thereto, and other reasonable
and documented out-of-pocket expenses incurred by Lender and the reasonable and
documented cost of independent public accountants and other outside experts
retained by Lender. Any amount payable to Lender under this Section shall bear
interest from the second Business Day following the date of demand for payment
at the Default Rate. The agreements in this Section shall survive repayment of
all Obligations.

      9.04 SUCCESSORS AND ASSIGNS; PARTICIPATIONS. (a) This Agreement and the
other Loan Documents to which Borrower is a party will be binding upon and inure
to the benefit of Borrower and Lender and their respective successors and
assigns, except that Borrower may not assign or transfer any of its rights under
this Agreement without the prior written consent of Lender and any such
attempted assignment shall be void. Lender in its sole and absolute discretion
may at any time, and from time to time, sell, assign (with the consent of
Borrower other than during the existence of a Default or an Event of Default,
which consent shall not be unreasonably withheld) or grant participations in all
or a portion of the Commitment and/or the Obligations outstanding under this
Agreement or any Loan Document; provided, however, that the aggregate amount of
the Commitment, Loans and other Obligations of the assigning Lender and the
assignee subject to each such assignment shall not be less than $20,000,000.
Borrower hereby acknowledges and agrees that any such assignment or
participation will give rise to a direct obligation of Borrower to the assignee
or participant upon written notice from Lender to Borrower. Borrower agrees to
execute, and cause each other Borrower to execute, any documents reasonably
requested by Lender in connection with any such assignment. All information
provided by or on behalf of Borrower to Lender or its Affiliates may be
furnished by Lender to its Affiliates and to any actual or proposed assignee or
participant.

      (b) In the event that Lender assigns any portion of the Commitment, Loans
and other Obligations to one or more assignees, Borrower and Lender agree that
this Agreement shall be amended pursuant to a mutually agreed upon amendment in
order to provide that (i) Lender shall act as agent for itself and all such
assignees, (ii) amendments, modifications and waivers of provisions of this
Agreement (other than those that reduce the principal amount of any Loan,
postpone the scheduled final maturity date of any Loan, postpone the date on
which any interest or fees are payable, decrease the interest rate borne by any
Loan (other than any waiver of any increase in the interest rate applicable to
any of the Loans pursuant to Section 2.05(c)) or the amount of fees payable
hereunder or increase the maximum duration of interest periods, which shall not
be effective without the written consent of all lenders) shall not be effective
without the written consent of lenders holding 51% or more of the Commitment and
(ii) Requests for Extension of Credit, payments and Compliance Certificates
shall be delivered to the agent.

      9.05 SET-OFF. In addition to any rights and remedies of Lender or any
assignee or participant of Lender or any Affiliates thereof (each, a "Proceeding
Party") provided by law, upon the occurrence and during the continuance of any
Event of Default, each Proceeding Party is authorized at any time and from time
to time, without prior notice to Borrower, any such notice being waived by
Borrower to the fullest extent permitted by law, to proceed directly, by right
of set-off, banker's lien, or otherwise, against any assets of Borrower which
may be in the hands of such Proceeding Party (including all general or special,
time or demand, provisional or other deposits and other indebtedness owing by
such Proceeding Party to or for the credit or the account of Borrower) and apply
such assets against the Obligations, irrespective of whether such

                                      -41-
<PAGE>

Proceeding Party shall have made any demand therefor and although such
Obligations may be unmatured.

      9.06 NO WAIVER; CUMULATIVE REMEDIES. No failure by Lender to exercise, and
no delay by Lender in exercising, any right, remedy, power or privilege
hereunder, shall operate as a waiver thereof; nor shall any single or partial
exercise of any right, remedy, power or privilege under any Loan Document
preclude any other or further exercise thereof or the exercise of any other
right, remedy, power or privilege. The rights, remedies, powers and privileges
herein or therein provided are cumulative and not exclusive of any rights,
remedies, powers and privileges provided by Law. Any decision by Lender not to
require payment of any interest (including Default Interest), fee, cost or other
amount payable under any Loan Document or to calculate any amount payable by a
particular method on any occasion shall in no way limit or be deemed a waiver of
Lender's right to require full payment thereof, or to calculate an amount
payable by another method that is not inconsistent with this Agreement, on any
other or subsequent occasion.

      9.07 USURY. Notwithstanding anything to the contrary contained in any Loan
Document, the interest and fees paid or agreed to be paid under the Loan
Documents shall not exceed the maximum rate of non-usurious interest permitted
by applicable Law (the "Maximum Rate"). If Lender shall receive interest or a
fee in an amount that exceeds the Maximum Rate, the excessive interest or fee
shall be applied to the principal of the Outstanding Obligations or, if it
exceeds the unpaid principal, refunded to Borrower. In determining whether the
interest or a fee contracted for, charged, or received by Lender exceeds the
Maximum Rate, Lender may, to the extent permitted by applicable Law, (a)
characterize any payment that is not principal as an expense, fee, or premium
rather than interest, (b) exclude voluntary prepayments and the effects thereof,
and (c) amortize, prorate, allocate, and spread in equal or unequal parts the
total amount of interest throughout the contemplated term of the Obligations.

      9.08 COUNTERPARTS. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

      9.09 INTEGRATION. This Agreement, together with the other Loan Documents
and any letter agreements referred to herein, comprises the complete and
integrated agreement of the parties on the subject matter hereof and supersedes
all prior agreements, written or oral, on the subject matter hereof. In the
event of any conflict between the provisions of this Agreement and those of any
other Loan Document, the provisions of this Agreement shall control and govern;
provided that the inclusion of supplemental rights or remedies in favor of
Lender in any other Loan Document shall not be deemed a conflict with this
Agreement. Each Loan Document was drafted with the joint participation of the
respective parties thereto and shall be construed neither against nor in favor
of any party, but rather in accordance with the fair meaning thereof.

      9.10 NATURE OF LENDER'S OBLIGATIONS. Nothing contained in this Agreement
or any other Loan Document and no action taken by Lender pursuant hereto or
thereto may, or may be deemed to, make Lender a partnership, an association, a
joint venture or other entity with Borrower or any Affiliate of Borrower.

                                      -42-
<PAGE>

      9.11 SURVIVAL OF REPRESENTATIONS AND WARRANTIES. All representations and
warranties made hereunder and in any other Loan Document, certificate or
statement delivered pursuant hereto or thereto or in connection herewith or
therewith shall survive the execution and delivery thereof. Such representations
and warranties have been or will be relied upon by Lender, notwithstanding any
investigation made by Lender or on its behalf.

      9.12 INDEMNITY BY BORROWER. Whether or not the transactions contemplated
hereby are consummated, Borrower agrees to indemnify, save and hold harmless
Lender, its Affiliates and their respective officers, directors, employees,
agents and attorneys-in-fact (collectively the "Indemnitees") from and against:
(a) any and all claims, demands, actions or causes of action that are asserted
against any Indemnitee by any Person relating directly or indirectly to a claim,
demand, action or cause of action that such Person asserts or may assert against
Borrower, any of their Affiliates or any of their officers or directors; (b) any
and all claims, demands, actions or causes of action arising out of or relating
to, the Loan Documents, any predecessor loan documents, the Commitment, the use
or contemplated use of the proceeds of any Loan, or the relationship of Borrower
and Lender under this Agreement; (c) any administrative or investigative
proceeding by any Governmental Authority arising out of or related to a claim,
demand, action or cause of action described in subsection (a) or (b) above; and
(d) any and all liabilities (including liabilities under indemnities), losses,
reasonable and documented out of pocket costs or expenses (including Attorney
Costs) that any Indemnitee suffers or incurs as a result of the assertion of any
foregoing claim, demand, action, cause of action or proceeding, or as a result
of the preparation of any defense in connection with any foregoing claim,
demand, action, cause of action or proceeding, in all cases, whether or not
arising out of the negligence of an Indemnitee, whether or not an Indemnitee is
a party to such claim, demand, action, cause of action or proceeding (all the
foregoing, collectively, the "Indemnified Liabilities"); provided that no
Indemnitee shall be entitled to indemnification for any loss caused by the gross
negligence or willful misconduct of any Indemnitee or for any loss asserted
against it by another Indemnitee. The agreements in this Section shall survive
repayment of all Obligations.

      9.13 NONLIABILITY OF LENDER. Borrower acknowledges and agrees that:

      (a) Any inspections of any property of Borrower made by or through Lender
are for purposes of administration of the Loan Documents only, and Borrower is
not entitled to rely upon the same (whether or not such inspections are at the
expense of Borrower);

      (b) By accepting or approving anything required to be observed, performed,
fulfilled or given to Lender pursuant to the Loan Documents, Lender shall not be
deemed to have warranted or represented the sufficiency, legality, effectiveness
or legal effect of the same, or of any term, provision or condition thereof, and
such acceptance or approval thereof shall not constitute a warranty or
representation to anyone with respect thereto by Lender;

      (c) The relationship between Borrower and Lender created by this Agreement
is, and shall at all times remain, solely that of borrower and lender; Lender
shall not under any circumstance be deemed to be in a relationship of confidence
or trust or a fiduciary relationship with Borrower or its Affiliates, or to owe
any fiduciary duty to Borrower or its Affiliates as a consequence of this
Agreement; by virtue of entering into this Agreement, Lender does not undertake
or assume any responsibility or duty to Borrower or its Affiliates to select,
review,

                                      -43-
<PAGE>

inspect, supervise, pass judgment upon or inform Borrower or its Affiliates of
any matter in connection with their property or the operations of Borrower or
its Affiliates; Borrower and its Affiliates shall rely entirely upon their own
judgment with respect to such matters; and any review, inspection, supervision,
exercise of judgment or supply of information undertaken or assumed by Lender in
connection with this Agreement relative to such matters is solely for the
protection of Lender and neither Borrower nor any other Person is entitled to
rely thereon; and

      (d) Lender shall not be responsible or liable to any Person for any loss,
damage, liability or claim of any kind relating to injury or death to Persons or
damage to property caused by the actions, inaction or negligence of Borrower
and/or its Affiliates and Borrower hereby indemnifies and holds Lender harmless
from any such loss, damage, liability or claim.

      9.14 NO THIRD PARTIES BENEFITED. This Agreement is made for the purpose of
defining and setting forth certain obligations, rights and duties of Borrower
and Lender in connection with the Extensions of Credit, and is made for the sole
benefit of Borrower and Lender, and Lender's successors and assigns. Except as
provided in Sections 9.04 and 9.12, no other Person shall have any rights of any
nature hereunder or by reason hereof.

      9.15 SEVERABILITY. Any provision of the Loan Documents that is prohibited
or unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

      9.16 CONFIDENTIALITY. Lender and each participant and assignee shall use
any confidential non-public information concerning Borrower and its Subsidiaries
that is furnished to it by or on behalf of Borrower and its Subsidiaries in
connection with the Loan Documents (collectively, "Confidential Information")
solely for the purpose of evaluating and providing products and services to them
and administering and enforcing the Loan Documents, and it will hold the
Confidential Information in confidence. Notwithstanding the foregoing, Lender
may disclose Confidential Information (a) to its Affiliates or any of its or its
Affiliates' directors, officers, employees, auditors, counsel, advisors, or
representatives (collectively, the "Representatives") whom it determines need to
know such information for the purposes set forth in this Section; (b) to any
bank or financial institution or other entity to which Lender has assigned or
desires to assign an interest or participation in the Loan Documents or the
Obligations, provided that any such foregoing recipient of such Confidential
Information agrees to keep such Confidential Information confidential as
specified herein; (c) to any governmental agency or regulatory body having or
claiming to have authority to regulate or oversee any aspect of Lender's
business in connection with the exercise of such authority or claimed authority;
(d) to the extent necessary or appropriate to effect or preserve Lender's or any
of its Affiliates' security (if any) for any Obligation or to enforce any right
or remedy or in connection with any claims asserted by or against Lender or any
of its Representatives; and (e) pursuant to any subpoena or any similar legal
process; provided that, unless specifically prohibited by applicable law or
court order, Lender shall notify Borrower of any request by any governmental or
regulatory agency (other than any such request in connection with any
examination of the financial condition of Lender by such regulatory agency) for
disclosure of any such non-public information prior to disclosure of such
information. For purposes hereof, the term "Confidential

                                      -44-
<PAGE>

Information" shall not include information that (x) is in Lender's possession
prior to its being provided by or on behalf of Borrower, provided that such
information is not known by Lender to be subject to another confidentiality
agreement with, or other legal or contractual obligation of confidentiality to,
a Borrower, (y) is or becomes publicly available (other than through a breach
hereof by Lender), or (z) becomes available to Lender on a nonconfidential
basis, provided that the source of such information was not known by Lender to
be bound by a confidentiality agreement or other legal or contractual obligation
of confidentiality with respect to such information.

      9.17 FURTHER ASSURANCES. Borrower and its Subsidiaries shall, at their
expense and without expense to Lender, do, execute and deliver such further acts
and documents as Lender from time to time reasonably requires for the assuring
and confirming unto Lender of the rights hereby created or intended now or
hereafter so to be, or for carrying out the intention or facilitating the
performance of the terms of any Loan Document.

      9.18 HEADINGS. Section headings in this Agreement and the other Loan
Documents are included for convenience of reference only and are not part of
this Agreement or the other Loan Documents for any other purpose.

      9.19 TIME OF THE ESSENCE. Time is of the essence of the Loan Documents.

      9.20 GOVERNING LAW.

      (a) THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAW OF THE STATE OF CALIFORNIA APPLICABLE TO AGREEMENTS MADE AND TO BE
PERFORMED ENTIRELY WITHIN SUCH STATE; PROVIDED THAT LENDER SHALL RETAIN ALL
RIGHTS ARISING UNDER FEDERAL LAW.

      (b) ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY
OTHER LOAN DOCUMENT SHALL BE BROUGHT IN THE COURTS OF THE STATE OF CALIFORNIA
SITTING IN ORANGE COUNTY OR OF THE UNITED STATES FOR THE CENTRAL DISTRICT OF
SUCH STATE, AND BY EXECUTION AND DELIVERY OF THIS AGREEMENT, BORROWER AND LENDER
CONSENTS, FOR THEMSELVES AND IN RESPECT OF THEIR PROPERTY, TO THE EXCLUSIVE
JURISDICTION OF THOSE COURTS. BORROWER AND LENDER IRREVOCABLY WAIVES ANY
OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE
GROUNDS OF FORUM NON CONVENIENS, WHICH THEY MAY NOW OR HEREAFTER HAVE TO THE
BRINGING OF ANY ACTION OR PROCEEDING IN SUCH JURISDICTION IN RESPECT OF ANY LOAN
DOCUMENT OR OTHER DOCUMENT RELATED HERETO. BORROWER AND LENDER AGREE THAT
SERVICE OF ALL PROCESS IN ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS
AGREEMENT OR ANY OTHER LOAN DOCUMENT MAY BE MADE BY REGISTERED OR CERTIFIED
MAIL, RETURN RECEIPT REQUESTED, TO BORROWER OR LENDER AT THEIR RESPECTIVE
ADDRESSES PROVIDED IN ACCORDANCE WITH SECTION 9.02, THAT SUCH SERVICE IS
SUFFICIENT TO CONFER PERSONAL JURISDICTION OVER BORROWER OR LENDER IN ANY SUCH

                                      -45-
<PAGE>

ACTION OR PROCEEDINGS AND OTHERWISE CONSTITUTES EFFECTIVE AND BINDING SERVICE IN
EVERY RESPECT AND THAT BORROWER AND LENDER RETAIN THE RIGHT TO SERVE PROCESS IN
ANY OTHER MANNER PERMITTED BY LAW.

      9.21 WAIVER OF RIGHT TO TRIAL BY JURY. EACH PARTY TO THIS AGREEMENT HEREBY
EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR
CAUSE OF ACTION ARISING UNDER ANY LOAN DOCUMENT OR IN ANY WAY CONNECTED WITH OR
RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY OF THEM WITH
RESPECT TO ANY LOAN DOCUMENT, OR THE TRANSACTIONS RELATED THERETO, IN EACH CASE
WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER FOUNDED IN CONTRACT OR
TORT OR OTHERWISE; AND EACH PARTY HEREBY AGREES AND CONSENTS THAT ANY SUCH
CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT
A JURY, AND THAT ANY PARTY TO THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR
A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE
SIGNATORIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

                                      -46-
<PAGE>

      IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed as of the date first above written.

                                        BROADCOM CORPORATION

                                        By: /s/ WILLIAM J. RUEHLE
                                           -------------------------------------

                                        Name: William J. Ruehle
                                             -----------------------------------

                                        Title: CFO and Vice President
                                              ----------------------------------

                                        BANK OF AMERICA, N.A.

                                        By: /s/ KEVIN MCMAHON
                                           -------------------------------------

                                        Name: Kevin McMahon
                                             -----------------------------------

                                        Title: Managing Director
                                              ----------------------------------

                                      -S1-
<PAGE>

                                CREDIT AGREEMENT

                                     BETWEEN

                              BROADCOM CORPORATION

                                       AND

                              BANK OF AMERICA, N.A.

                          DATED AS OF DECEMBER 21, 2001

Exhibit A       Form of Request for Extension of Credit
Exhibit B       Form of Compliance Certificate
Exhibit C       Form of Opinion of Counsel

Schedule 5.02   Subsidiaries
Schedule 7.01   Existing Indebtedness, Liens and Negative Pledges
Schedule 9.02   Notice Addresses and Lending Office

Broadcom Corporation agrees to furnish supplementally a copy of any of the
foregoing exhibits to the SEC upon request.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00035-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00035-of-00352.parquet"}]]