Document:

<PAGE>   1

                                                                   EXHIBIT 10.24

                                     [LOGO]

                                    SUBLEASE

SUBLESSOR:  Southwall Technologies, Inc.     PREMISES:  1029 Corporation Way
                                                        Palo Alto, California

SUBLESSEE:  Medibuy, Inc., a Delaware        DATE:      October 14, 1999
            corporation

1.  PARTIES:

    This Sublease is made and entered into as of October 14, 1999, by and
    between Southwall Technologies, Inc. (Sublessor), and Medibuy, Inc., a
    Delaware corporation (Sublessee), under the Master Lease dated October __,
    1999, between C & J Development Company, a California corporation as
    (Lessor) and Sublessor under this Sublease as (Lessee). A copy of the Master
    Lease is attached hereto as Exhibit "A" and incorporated herein by this
    reference.

2.  PROVISIONS CONSTITUTING SUBLEASE:

    2.1  This Sublessee is subject to all of the terms and conditions of the
Master Lease, Sublessee hereby assumes and agrees to perform all of the
obligations of Lessee under the Master Lease to the extent said obligations
apply to the Subleased Premises and Sublessee's use of the common areas, except
as specifically set forth herein. Sublessor hereby agrees to cause Lessor,
under the Master Lease, to perform all of the obligations of Lessor thereunder
to the extent said obligations apply to the Subleased Premises and Sublessee's
use of the common areas, Sublessee shall not commit or permit to be committed
on the Subleased Premises or on any other portion of the Project any act or
omission which violates any term or condition of the Master Lease. Except to
the extent waived or consented to in writing by the other party or parties
hereto who are affected thereby, neither of the parties hereto will, by
renegotiations of the Master Lease, assignment, subletting, default or any
other voluntary action, avoid or seek to avoid the observance or performance of
the terms to be observed or performed hereunder by such party but, will at all
times, in good faith assist in carrying out all the terms of this Sublease and
in taking all such action as may be necessary or appropriate to protect the
rights of the other party or parties hereto who are affected thereby against
impairment. Nothing contained in this Section 2.1 or elsewhere in this Sublease
shall prevent or prohibit Sublessor (a) from exercising its right to terminate
the Master Lease pursuant to the terms thereof or (b) from assigning its
interest in this Sublease or subletting the Premises to any other third party.

<PAGE>   2
                                    SUBLEASE

        All of the terms and conditions contained in the Master Lease are
        incorporated herein, except as specifically provided below, and shall
        together with the terms and conditions specifically set forth in this
        Sublease constitute the complete terms and conditions of this Sublease.
        The following paragraphs of the Master Lease shall not be included in
        this Sublease:

        2, 4, 5, 16, 48, 54, 55, Exhibit A.

3.  PREMISES:

    Sublessor leases to Sublessee and Sublessee leases from Sublessor the
    Subleased Premises upon all of the terms, covenants and conditions contained
    in this Sublease. The Subleased Premises consist of approximately 4,250
    rentable square feet located in a portion of the second floor at 1029
    Corporation Way, Suite 200, Palo Alto, California as shown and described in
    Exhibit "B".

4.  RENT:

    Upon execution of this Agreement, Sublessee shall pay to Sublessor as Rent
    for the Subleased Premises the sum of $15,937.50 and 00/100 Dollar,
    representing the first month's rent. Thereafter, rent shall be in accordance
    with the following schedule:

<TABLE>
<CAPTION>
                MONTHS          AMOUNT PER SQUARE FOOT/FULL SERVICE
                ------          -----------------------------------
                <S>             <C>
                01-14           53-75/sq.ft/per month
</TABLE>

    The rental amount shall be paid, without deductions, offset, prior notice or
    demand. If the commencement date or the termination date of the Sublease
    occurs on a date other than the first day or the last day, respectively, of
    a calendar month, then its Rent for such partial month shall be prorated and
    the prorated Rent shall be payable on the Sublease commencement date or on
    the first day of the calendar month in which the Sublease termination date
    occurs, respectively.

5.  SECURITY DEPOSIT:

    Upon execution of this Agreement, Sublessee shall pay to Sublessor an
    equivalent of six (6) months' rent as a non-interest bearing Security
    Deposit. Said Deposit shall be credited to the last five (5) months' rent of
    the term, which will leave Sublessor with one (1) month's Security Deposit
    at the end of the term. In the event Sublessee has performed all of the
    terms and conditions of this Sublease during the term hereof, Sublessor
    shall return to Sublessee, within ten (10) days after Sublessee has vacated
    the Subleased Premises, the Security Deposit less any sums due and owing to
    Sublessor.

<PAGE>   3

                                    SUBLEASE

6.    RIGHTS OF ACCESS AND USE:

      6.1   Use:

            Sublessee shall use the Subleased Premises only for those purposes
            permitted in the Master Lease, unless Sublessor and Master Lessor
            consent in writing to other uses prior to the commencement thereof.

7.    SUBLEASE TERM:

      7.1   Sublease Term:

            The Sublease Term shall be for the period commencing on November 1,
            1999, and continuing through December 31, 2000. In no event shall
            the Sublease Term extend beyond the Term of the Master Lease.

      7.2   Inability to Deliver Possession:

            In the event Sublessor is unable to deliver possession of the
            Subleased Premises at the commencement of the term, Sublessor shall
            not be liable for any damage caused thereby nor shall this Sublease
            be void or voidable, but Sublessee shall not be liable for Rent
            until such time as Sublessor offers to deliver possession of the
            Subleased Premises to Sublessee, but the term hereof shall not be
            extended by such delay. If Sublessee, with Sublessor's consent,
            take possession prior to commencement of the term, Sublessee shall
            do so subject to all the covenants and conditions hereof and shall
            pay Rent for the period ending with commencement of the term at the
            same rental as that prescribed for the first month of the term
            prorated at the rate of 1/30th thereof per day. In the event
            Sublessor has been unable to deliver possession of the Sublease
            Premises within thirty (30) days from the commencement date,
            Sublessee, at Sublessee's option, may terminate this Sublease.

8.    NOTICES:

      All notices, demands, consents and approvals which may or are not
      required to be given by either party to the other hereunder shall be
      given in the manner provided in the Master Lease at the addresses shown
      below. Sublessor shall notify Sublessee of any Event of Default under the
      Master Lease, or of any other event of which Sublessor has actual
      knowledge which will impair Sublessee's ability to conduct its normal
      business at the Sublease Premises, as soon as reasonable practicable
      following Sublessor's receipt of notice from the Lessor of an Event of
      Default or actual knowledge of such impairment. If Sublessor elects to
      terminate the Master Lease, Sublessor shall so notify Sublessee by giving
      at least thirty (30) days notice prior to the effective date of such
      termination.

<PAGE>   4
--------------------------------------------------------------------------------
                                    SUBLEASE
--------------------------------------------------------------------------------

Sublessor's Address: Bill Finley           Sublessee's Address: John Stevens
                     Southwall Technologies                     Meadbuy, Inc.
                     1029 Corporation Way                       1029 Corporation
                     Palo Alto, CA 94308                        Way #200
                                                                Palo Alto,
                                                                CA 94303

      Phone Number:  (650) 962-9111               Phone Number: TBD
        Fax Number:   (650) 967-8713                Fax Number: TBD

9.   BROKER FEE:

     Upon execution of the Sublease, Sublessor shall pay Cornish & Carey
     Commercial, a licensed real estate broker, fees set forth in a separate
     agreement between Sublessor and Broker for brokerage services rendered by
     Broker to Sublessor in these transactions.

10.  BROKER REPRESENTATION:

     The only Brokers involved in this Sublease are Cornish & Carey Commercial
     representing Sublessor and Cornish & Carey Commercial representing
     Sublessee. If Cornish & Carey Commercial represents both parties, then
     Sublessor and Sublessee consent to such dual representation and waive any
     conflict of interest arising out of such dual agency.

11.  COMPLIANCE WITH AMERICANS WITH DISABILITIES ACT:

     Sublessee shall be responsible for the installation and cost of any and all
     improvements, alterations or other work required on or to the Sublease
     Premises or to any other portion of the property and/or building of which
     the Subleased Premises are a part, required or reasonably necessary because
     of: (1) Sublessee's use of the Subleased Premises or any portion thereof;
     (2) the use by a Sublessee by reason of assignment or sublease; or (3)
     both, including any improvements, alterations or other work required under
     the Americans With Disabilities Act of 1990. Compliance with the provisions
     of this Section ? shall be a condition of Sublessor granting its consent to
     any assignment or Sublease of all or portion of this Sublease and the
     Subleased Premises described in this Sublease.

     Notwithstanding anything to the contrary in this Sublease, Sublessee shall
     not be responsible for compliance with any laws, codes, ordinances or other
     governmental directives where such compliance is not related to Tenant's
     specific use and occupancy of the Subleased Premises or triggered by
     Sublessee's alterations or improvements to the Subleased Premises.

13.  COMPLIANCE WITH NONDISCRIMINATION REGULATIONS:

     It is understood that it is illegal for Sublessor to refuse to display or
     sublease the Subleased Premises or to assign, surrender or sell the Master
     Lease, to any person because of race, color, religion, national origin,
     sex, sexual orientation, martial status or disability

-------------------------------------------------------------------------------
245 LYTTON AVENUE, SUITE 150, PALO ALTO, CA 94301 * (650) 322-2600 Fax (650)
321-0716
-------------------------------------------------------------------------------
<PAGE>   5

13.  TOXIC CONTAMINATION DISCLOSURE:

     Notwithstanding anything to the contrary contained in the Master Lease as
     incorporated herein (including, without limitation the provisions of
     Section 50). Sublessor shall have no obligation to "clean up," monitor,
     abate or to comply with any law or Environmental Requirements regarding, or
     to reimburse, release, indemnify, or defend Sublessor with respect to any
     toxic or Hazardous Materials which now or hereafter become regulated by any
     governmental authority or agency thereof and which Sublessee did not store,
     dispose of, or transport in, use, or cause to be on the Premises or Project
     in violation of any Hazardous Materials laws or Environmental Requirements.

     Sublessor and Sublessee each acknowledge that they have been advised that
     numerous federal, state, and/or local laws, ordinances and regulations
     (Laws) affect the existence and removal, storage, disposal, leakage of
     and contamination by materials designated as hazardous or toxic (Toxics).
     Many materials , some utilized in everyday business activities and
     property maintenance, are designated as hazardous or toxic.

     Some of the Laws require that Toxics be removed or cleaned up by
     landowners, future landowners or former landowners without regard to
     whether the party required to pay for "clean up" caused the contamination,
     owned the property at the time the contamination occurred or even knew
     about the contamination. Some items, such as asbestos or PCBs, which were
     legal when installed, now are classified as Toxics and are subject to
     removal requirements. Civil lawsuits for damages resulting from Toxics
     may be filed by third parties in certain circumstances.

     Sublessor and Sublessee each acknowledge that Broker has no specific
     expertise with respect to environmental assessment or physical condition
     of the Subleased Premises, including, but not limited to, matters relating
     to: (i) problems which may be posed by the presence or disposal of
     hazardous or toxic substances on or from the Subleased Premises, (ii)
     problems which may be posed by the Subleased Premises being within the
     Special Studies Zone as designated under the Alquist-Priole Special
     Studies Zone Act (Earthquake Zones), Section 2621 - 2630, inclusive of
     California Public Resources Code, and (iii) problems which may be posed by
     the Subleased Premises being within a HUD Flood Zone as set forth in the
     U.S. Department of Housing and Urban Development "Special Flood Zone Area
     Maps", as applicable.

     Sublessor and Sublessee each acknowledge that Broker has not made an
     independent investigation or determination of the physical or environmental
     condition of the Subleased Premises, including, but not limited to, the
     existence or nonexistence of any underground tanks, sumps, piping, toxic
     or hazardous substances on the Subleased Premises. Sublessee agrees that
     it will rely solely upon its own investigation and/or the investigation
     of professional retained by it or Sublessor, and neither Sublessor nor
     Sublessee shall rely upon

<PAGE>   6
      Broker to determine the physical and environmental condition of the
      Sublease Premise or to determine whether, to what extent or in what
      manner, such condition must disclosed to potential sublessees, assigned,
      purchasers or other interested parties.

14.   RENT ABATEMENT AND DAMAGES TO PERSONAL PROPERTY:
      In the event Sublessor, pursuant to the terms of the Master Lease, is
      entitled to and receives rent abatement, then to the extent such rent
      abatement affects the Subleased Premises. Sublessee shall be entitled to
      rent abatement in an amount that the net rentable area of the Subleased
      premises bears to the total net rentable area of the Master Lease, and
      only to the extent any such abatement applies in the Sublease Term. In
      addition, any amounts paid or credited to Sublessor under the terms of
      the Master Lease for damage to personal property shall be credited to
      Sublessee, subject to the same limitations set forth above.

15.   OPTIONS TO RENEW:
      Subordinate to Sublessor needing the Premises, Sublessee shall have a six
      (6) month option to renew their Sublease, under the same terms and
      conditions except rent which shall be $3.85/sq. foot per month Full
      Service. Sublessee shall give Sublessor three (3) months written notice
      prior to the end of the term, of their desire to renew. Sublessor shall
      then have fifteen (15) days to notify Sublessee if Sublessor will need
      the Premises.

16.   SIGNAGE:
      Sublessor shall grant Sublessee, at Sublessee's sole cost, suite door,
      signage.

17.   FULL SERVICES:
      Notwithstanding anything to the contrary in this Sublease, the Rent is
      herein described shall be "full-service" rent inclusive of taxes, common
      area charges, water, gas, electricity, HVAC maintenance and other
      utilities and Sublessee shall not have any liability for, and there shall
      be no pass-through of any charges relating to Sublessor's obligations
      under the Master Lease.

18.   OPERATING SYSTEMS:
      Upon commencement of the Sublease, all operating systems, including
      electrical, plumbing, HVAC and roof will be in good condition and repair.

19.   TENANT IMPROVEMENTS:
      Sublessee shall take possession of the Premises in an "AS IS" condition,
      with the exception the space will be in a broom clean condition.

<PAGE>   7

                                     [LOGO]

================================================================================
                                S U B L E A S E
================================================================================

Sublessor: SOUTHWALL TECHNOLOGIES

By: /s/ BILL R. FINLEY                                  Date: 1 Nov. '99
   ---------------------------------                         -------------------
   Bill Finley, Vice President, CFO

Sublessee: MEDIBUY, INC., a Delaware Corporation

By: /s/ DENNIS J. MURPHY                                Date: 10-29-99
   ---------------------------------                         -------------------
   Dennis J. Murphy, CEO

NOTICE TO SUBLESSOR AND SUBLESSEE: CORNISH & CAREY COMMERCIAL, IS NOT
AUTHORIZED TO GIVE LEGAL OR TAX ADVICE; NOTHING CONTAINED IN THIS SUBLEASE OR
ANY DISCUSSIONS BETWEEN CORNISH & CAREY COMMERCIAL AND SUBLESSOR AND SUBLESSEE
SHALL BE DEEMED TO BE A REPRESENTATION OR RECOMMENDATION BY CORNISH & CAREY
COMMERCIAL, OR ITS AGENTS OR EMPLOYEES AS TO THE LEGAL EFFECT OR TAX
CONSEQUENCES OF THIS DOCUMENT OR ANY TRANSACTION RELATING THERETO. ALL PARTIES
ARE ENCOURAGED TO CONSULT WITH THEIR INDEPENDENT FINANCIAL CONSULTANTS AND/OR
ATTORNEYS REGARDING THE TRANSACTION CONTEMPLATED BY THIS PROPOSAL.

Exhibit "A:" Master Lease

Exhibit "B" Premises

--------------------------------------------------------------------------------
              245 LYTTON AVENUE, SUITE 130. PALO ALTO, CA 94301 --
                       (650) 332-2800 FAX (830) 321-0719
--------------------------------------------------------------------------------
<PAGE>   8

                                                                       EXHIBIT B

                             [SECOND FLOOR DIAGRAM]
<PAGE>   9

                           STANDARD INDUSTRIAL LEASE

                                 BY AND BETWEEN

                             C & J DEVELOPMENT CO.,

                                  AS LANDLORD

                                      AND

                          SOUTHWALL TECHNOLOGIES, INC.

                                   AS TENANT
<PAGE>   10
                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
ITEM

<S>  <C>
1.   USE
2.   TERM
3.   POSSESSION
4.   MONTHLY RENT
5.   ADJUSTMENT OF BASIC RENT
6.   RESTRICTION ON USE
7.   COMPLIANCE WITH LAWS
8.   ALTERATIONS
9.   REPAIR AND MAINTENANCE
10.  LIENS
11.  INSURANCE
12.  UTILITIES AND SERVICE
13.  TAXES AND OTHER CHARGES
14.  ENTRY BY LANDLORD
15.  COMMON AREA; PARKING
16.  COMMON AREA CHARGES
17.  DAMAGE BY FIRE; CASUALTY
18.  INDEMNIFICATION
19.  ASSIGNMENT AND SUBLETTING
20.  DEFAULT
21.  LANDLORD'S RIGHT TO CURE TENANT'S DEFAULT
22.  EMINENT DOMAIN
23.  NOTICE AND COVENANT TO SURRENDER
24.  TENANT'S QUITCLAIM
25.  HOLDING OVER
26.  SUBORDINATION
27.  CERTIFICATE OF ESTOPPEL
28.  SALE BY LANDLORD
29.  ATTORNMENT TO LENDER OR THIRD PARTY
30.  DEFAULT BY LANDLORD
31.  CONSTRUCTION CHANGES
32.  MEASUREMENT OF PREMISES
33.  ATTORNEY FEES
34.  SURRENDER
35.  WAIVER
36.  EASEMENTS; AIRSPACE RIGHTS
37.  RULES AND REGULATIONS
38.  NOTICES
39.  NAME
40.  GOVERNING LAW; SEVERABILITY
41.  DEFINITIONS
42.  TIME
43.  EXAMINATION OF LEASE
44.  INTEREST ON PAST DUE OBLIGATIONS; LATE CHARGE
45.  ENTIRE AGREEMENT
46.  CORPORATE AUTHORITY
47.  RECORDING
48.  REAL ESTATE BROKERS
49.  EXHIBITS AND ATTACHMENTS
50.  ENVIRONMENTAL MATTERS
51.  SIGNAGE
52.  SUBMISSION OF LEASE
53.  ADDITIONAL RENT
54.  PREMISES TAKEN "AS IS"
55.  CAPITAL EXPENDITURES
</TABLE>

<PAGE>   11
                                     LEASE

     THIS LEASE is made this _________ day of October, 1999, by and between C&J
Development Co., a California limited partnership, ("Landlord") and Southwall
Technologies, Inc. (formerly The Southwall Corporation), a Delaware corporation
("Tenant").

                              W I T N E S S E T H

     Landlord leases to Tenant and Tenant leases from Landlord those certain
premises outlined in red on Exhibit A (the "Premises") commonly known as 1029
Corporation Way, Palo Alto, California, which Landlord and Tenant hereby agree
consists of approximately nineteen thousand seven hundred and eighty-two
(19,782) square feet in 1029 Corporation Way, Palo Alto, California (the
"Project"). As used herein the term Project shall mean and include all of the
land described in Exhibit B and all the buildings, improvements, fixtures and
equipment now or hereafter situated on said land.

     Tenant covenants, as a material part of the consideration of this lease,
to perform and observe each and all the terms, covenants and conditions set
forth below, and this lease is made upon the condition of such performance and
observance.

     1.   USE

          Subject to the restrictions contained in paragraph 6 hereof, Tenant
shall use the Premises for marketing, sales, research and development, general
office and administrative uses and shall not use or permit the Premises to be
used for any other purpose.

     2.   TERM

          (a) The term shall be for three (3) years (unless sooner terminated as
hereinafter provided) and, subject to paragraph 3, shall commence on January 1,
2000 and end on December 31, 2002.

     3.   POSSESSION

          (a) If Landlord for any reason cannot deliver possession of the
Premises to Tenant by the date of commencement set forth in paragraph 2, this
lease shall not be void or voidable, Landlord shall not be liable to Tenant for
any loss or damage on account thereof and Tenant shall not be liable for rent
until Landlord delivers possession of the Premises. If the term commences on a
date other than the date specified in paragraph 2 above, then the parties shall
immediately execute an amendment to this lease stating the actual date of
commencement and the revised expiration date. The expiration date of the term
shall be extended by the same number of days that Tenant's possession of the
Premises was delayed from that set forth in paragraph 2.

          (b) Tenant's inability or failure to take possession of the Premises
when delivery is tendered by Landlord shall not delay the commencement of the
term of this lease or Tenant's obligation to pay rent. Tenant acknowledges that
Landlord shall incur significant expenses upon the execution of this lease,
even if Tenant never takes possession of the Premises, including without
limitation brokerage commissions and fees and legal and other professional
fees. Tenant acknowledges that all of said expenses shall be included in
measuring Landlord's damages should Tenant breach the terms of this lease.

     4.   MONTHLY RENT

          (a) Basic Rent. Tenant shall pay to Landlord as basic rent for the
Premises, in advance and subject to adjustment as provided in paragraph 5, the
sum of Fifty Thousand and Four Hundred and Forty-Five and 10/100 Dollars
($50,444.10) on or before the first day of the first full calendar month of the
term and on or before the first day of each and every successive calendar
month. Basic rent for any partial month shall be payable in advance and shall
be prorated at the rate of 1/30th of the monthly basic rent per day.

          (b) Common Area Charges. In addition to the above basic rent, and as
additional rent, Tenant shall pay to Landlord, subject to adjustments and
reconciliation as provided in paragraph 16 of this lease, the sum of Three
Thousand Seven Hundred and Five and 00/100 Dollars (3,705.00) on or before the
first day of the first full calendar month of the term and on the first day of
each and every succeeding calendar month, said sum representing Tenant's
estimated payment of its percentage share of common area charges as provided
for in paragraph 16 of this lease. Payment of common area charges for any
partial month shall be payable in advance and shall be prorated at the rate of
1/30th of the monthly payment of common area charges per day.

          (c) Manner and Place of Payment. All payments of basic rent and
common area charges shall be paid to Landlord, without deduction or offset, in
lawful money of the United States of
<PAGE>   12

America, at the office of Landlord at 360 S. San Antonio Road, Suite 14, Los
Altos, California 94022 or to such other person or place as Landlord may from
time to time designate in writing.

          (d) Last Month's Rent. Concurrently with Tenant's execution of this
lease, Tenant shall deposit with Landlord, the sum of Twenty-Two Thousand Seven
Hundred and Forty-Nine and 30/100 Dollars ($22,749.30), to be applied against
the basic rent and common area charges for the last lease month of the term.

          (e) Security Deposit. Concurrently with Tenant's execution of this
lease, Tenant shall deposit with Landlord the sum of Twenty-Two Thousand Seven
Hundred and Forty-Nine and 30/100 Dollars ($22,749.30), which sum shall be held
by Landlord as a security deposit for the faithful performance by Tenant of all
of the terms, covenants and conditions of this lease to be kept and performed by
Tenant. If Tenant defaults with respect to any provision of this lease,
including but not limited to, the provisions relating to the payment of basic
rent and common area charges, Landlord may (but shall not be required to) use,
apply, or retain all or any part of this security deposit for the payment of any
amount which Landlord may spend by reason of Tenant's default or to compensate
Landlord for any other loss or damage which Landlord may suffer by reason of
default. If any portion of said deposit is so used, Tenant shall, within ten
(10) days after written demand therefor, deposit cash with Landlord in the
amount sufficient to restore the security deposit to its original amount;
Tenant's failure to do so shall be a material breach of this lease. Landlord
shall not be required to keep this security deposit separate from its general
funds and Tenant shall not be entitled to interest on such deposit. If Tenant is
not in default at the expiration or termination of this lease, the security
deposit or any balance thereof shall be returned to Tenant after Tenant has
vacated the Premises. In the event of termination of Landlord's interest in this
lease, Landlord shall transfer said deposit to Landlord's successor in interest,
and Tenant agrees that Landlord shall thereupon be released from liability for
the return of such deposit or any accounting therefor.

     5.    ADJUSTMENT OF BASIC RENT

           The basic rent provided for in paragraph 4(a) shall be adjusted
periodically and the monthly basic rent for each period shall be as set forth
below:

           Lease Months 1-12  (1/1/00-12/31/00)     $50,444.10 per month

           Lease Months 1-12  (1/1/01-12/31/01)     $51,957.42 per month

           Lease Months 1-12  (1/1/02-12/31/02)     $53,516.15 per month

     6.    RESTRICTION ON USE

           Tenant shall not do or permit to be done in or about the Premises or
the Project, nor bring or keep or permit to be brought or kept in or about the
Premises or Project, anything which is prohibited by or will in any way increase
the existing rate of, or otherwise affect, fire or any other insurance covering
the Project or any part thereof, or any of its contents, or will cause a
cancellation of any insurance covering the Project or any part thereof, or any
of its contents. Tenant shall not do or permit to be done anything in or about
the Premises or the Project which will constitute waste or which will in any way
obstruct or interfere with the rights of other tenants, business invitees or
occupants of the Project or injure or annoy them, or use or allow the Premises
to be used for any unlawful purpose, nor shall Tenant cause, maintain or permit
any nuisance in or about the Premises or the Project. No loudspeaker or other
device, system or apparatus which can be heard outside the Premises shall be
used in or at the Premises without the prior written consent of Landlord. Tenant
shall not use the Premises for the preparation, or mixing of anything that might
emit any objectionable odor, noise or light into the adjoining premises or
Common Area. Tenant shall not do anything on the Premises that will cause damage
to the Project and Tenant shall not overload the floor capacity of the Premises
or the Project. No machinery, apparatus or other appliance shall be used or
operated in or on the Premises that will in any manner injure, vibrate or shake
the Premises. Landlord shall be the sole judge, of whether such odor, noise,
light or vibration is such as to violate the provisions of this paragraph. No
waste materials or refuse shall be dumped upon or permitted to remain upon any
part of the Premises or the Project except in trash containers placed inside
exterior enclosures designated for that purpose by Landlord, or where otherwise
designated by Landlord; and no toxic or hazardous materials shall be disposed of
through the plumbing or sewage system. No materials, supplies, equipment,
finished products or semi-finished products, raw materials or articles of any
nature shall be stored or permitted to remain outside of the building proper. No
retail sales shall be made on the Premises.

     7.    COMPLIANCE WITH LAWS

           Tenant shall, in connection with its use and occupation of the
Premises, at its sole cost and expense, promptly observe and comply with (i) all
laws, statutes, ordinances and governmental rules, regulations and requirements
now or hereafter in effect, (ii) with the requirements of any board of fire
underwriters or other similar body now or hereafter constituted and (iii) with
any direction or occupancy certificate issued pursuant to law by any public
authority; provided, however, that no such failure shall be deemed a breach of
these provisions if Tenant, immediately upon notification,
<PAGE>   13
commences to remedy or rectify said failure. The judgment of any court of
competent jurisdiction or the admission of Tenant in any action against Tenant
(whether or not Landlord is a party thereto) that Tenant has violated any such
law, statute, ordinance or governmental rule, regulation, requirement,
direction or provision, shall be conclusive of that fact as between Landlord
and Tenant. This lease shall remain in full force and effect notwithstanding
any loss of use or other effect on Tenant's enjoyment of the Premises by reason
of any governmental laws, statutes, ordinances, rules, regulations and
requirements now or hereafter in effect.

     Landlord represents that the project was constructed in accordance with
applicable laws, statutes, ordinances and/or governmental rules, regulations or
requirements in effect as of the date of construction of the Project, and that
the improvements to be constructed in accordance with Exhibit C of the original
lease between Landlord and Tenant dated October 21, 1983 were constructed in
accordance with applicable laws, statutes, ordinances and/or governmental
rules, regulations or requirements in effect as of the date of construction of
such improvements.

          Landlord and Tenant hereby acknowledge that the Americans with
Disabilities Act and Title 24 of the Code of California Regulations may affect
Tenant's use and occupancy of the Premises and require Tenant to modify or
alter the design, layout or other physical elements of the interior of the
Premises or provide auxiliary aids and services in connection with its business
operations. Tenant shall, at Tenant's sole cost and expense, comply in all
respects with the requirements of the Americans with Disabilities Act and Title
24 of the Code of California Regulations as it affects Tenant's use and
occupancy of the Premises throughout the term of the lease, as may be extended,
and Tenant acknowledges and agrees that, notwithstanding any modifications to
the Common Area which may be made by Landlord in order to conform such areas
with the requirements of the Americans with Disabilities Act and Title 24 of
the Code of California Regulations, Landlord makes no representations or
warranties regarding the compliance of the Premises or the Project with the
Americans with Disabilities Act and Title 24 of the Code of California
Regulations, nor shall Landlord have any obligations or liabilities to Tenant
to construct any modifications or alterations to the interior of the Premises
in order to comply with the Americans with Disabilities Act and Title 24 of the
Code of California Regulations.

     8.   ALTERATIONS

          Tenant shall not make or suffer to be made any alteration, addition
or improvement to or of the Premises or any part thereof (collectively referred
to herein as "alterations") without (i) the prior written consent of Landlord
(which consent shall not be unreasonably withheld and Landlord further agrees
that Landlord shall not raise the basic rent as of condition of such consent),
(ii) a valid building permit issued by the appropriate governmental authority
and (iii) otherwise complying with all applicable laws, regulations and
requirements of governmental agencies having jurisdiction with the rules,
regulations and requirements of any board of fire underwriters or similar body.
Any alteration made by Tenant (excluding moveable furniture and trade fixtures
not attached to the Premises) shall at once become a part of the Premises and
belong to Landlord. Without limiting the foregoing, all heating, lighting,
electrical (including all wiring, conduit, outlets, drops, buss ducts, main and
subpanels), air conditioning, partitioning, drapery and carpet installations
made by Tenant, regardless of how attached to the Premises, together with all
other alterations that have become an integral part of the Project in which the
Premises are a part, shall be and become part of the Premises and belong to
Landlord upon installation and shall not be deemed traded fixtures, and shall
remain upon and be surrendered with the Premises at the termination of the
lease.

     If Landlord consents to the making of any alteration by Tenant, the same
shall be made by Tenant at its sole risk, cost and expense and only after
Landlord's written approval of any contractor or person selected by Tenant for
that purpose (provided that Landlord waives the right to approve such
contractor or person if the same is a duly licensed contractor and a valid
building permit is issued by the appropriate governmental authority), and the
same shall be made at such time and in such manner as Landlord may from time to
time designate. Tenant shall, if required by Landlord, secure at Tenant's cost
completion and lien indemnity bond for such work. Upon the expiration or sooner
termination of the term, Landlord may, at its sole option, require Tenant, at
Tenant's sole cost and expense, to promptly both remove any such alteration
made by Tenant and designated by Landlord to be removed and repair any damage
to the Premises caused by such removal. Any moveable furniture and equipment or
trade fixtures remaining on the Premises at the expiration or other termination
of the term shall become the property of the Landlord unless promptly removed
by Tenant.

     If during the term, and subject to paragraph 7 above, any alteration,
addition or change of the Premises or the Project is required by law,
regulation, ordinance or order of any public or quasi-public authority, Tenant,
at its sole cost and expense, shall promptly make the same. If during the term
any alterations, additions or changes to the Common Area or to the Project in
which the Premises is located is required by law, regulations, ordinance or
order of any public or quasi-public authority, and it is  impractical in
Landlord's judgment for the affected tenants to individually make such
alterations, additions or changes, Landlord shall make such alterations,
additions or changes and the cost thereof shall be a common area charge and
Tenant shall pay its percentage share of such cost to Landlord as provided in
paragraph 16.
<PAGE>   14
     9.   REPAIR AND MAINTENANCE

     By entry hereunder, Tenant accepts the Premises as being in good and
sanitary order, condition and repair (excepting only "punchlist items"). Except
as expressly provided below, Tenant shall at its sole cost keep and maintain the
entire Premises and every part thereof including, without limitation, the
windows, window frames, plate glass, glazing, elevators within the Premises,
truck doors, doors and all door hardware, the interior walls and partitions,
lighting and the electrical, mechanical, and plumbing systems. Tenant shall also
repair and maintain the heating and air conditioning systems (unless Landlord
has elected to keep and maintain the heating and air conditioning systems as
provided below) which shall include, without limitation, a periodic maintenance
agreement with a reputable and licensed heating and air conditioning service
company. If Tenant's use of the heating and air conditioning systems is limited
to normal business hours (8:00 a.m. to 6:00 p.m.), such agreement shall provide
for service at least as often as every 60 days; if Tenant's use of the heating
or air conditioning systems extends beyond such normal business hours this
service shall be as often as may be required by landlord and in any event such
service shall meet all warranty enforcement requirements of such equipment and
comply with all manufacturer recommended maintenance. Landlord may elect, at its
option, to keep and maintain the heating and air conditioning systems of the
premises and in such event, Tenant shall pay to Landlord upon demand the full
cost of such maintenance.

     Subject to the provisions of paragraph 17, Landlord shall keep and
reasonably maintain the roof, structural elements, and exterior walls of the
buildings constituting the Project and Common Area in reasonably good order and
repair. Tenant waives all rights under and benefits of California Civil Code
Sections 1932(1), 1941, and 1942 and under any similar law, statute or ordinance
now or hereafter in effect. The cost of the repairs and maintenance which are
the obligation of Landlord hereunder, including without limitation, maintenance
contracts and supplies, materials, equipment and tools used in such repairs and
maintenance shall be obtained at competitive prices for major repairs and shall
be a common area charge and Tenant shall pay its percentage share of such costs
to Landlord as provided in paragraph 16; provided, however, that if any repairs
or maintenance is required because of an act of omission of Tenant, or its
agents, employees or invitees, Tenant shall pay to Landlord upon demand the full
cost of such repairs or maintenance.

     As used herein, "punchlist items" shall mean minor repairs to painting,
carpets, walls and other interior improvements to the Premises as reasonably
determined by Tenant and disclosed to Landlord within thirty (30) days of the
date Tenant takes possession of the Premises. Landlord shall repair all
punchlist items subject to the terms of paragraph 16, below. Landlord shall have
no obligation to repair items that are not disclosed to Landlord by Tenant in
writing within thirty (30) days of the date possession of the Premises is
delivered to Tenant.

     10.  LIENS

     Tenant shall keep the Premises and the Project free from any liens arising
out of any work performed, materials furnished or obligations incurred by
Tenant, its agents, employees or contractors. Upon Tenant's receipt of a
preliminary twenty (20) day notice filed by a claimant pursuant to California
Civil Code Section 3097, Tenant shall immediately provide Landlord with a copy
of such notice. Should any such lien be filed against the Project, Tenant shall
give immediate notice of such lien to Landlord. In the event that Tenant shall
not, within ten (10) days following the imposition of such lien, cause the same
to be released of record, Landlord shall have, in addition to all other remedies
provided herein and by law, the right, but no obligation, to cause the same to
be released by such means as it shall deem proper, including payment of the
claim giving rise to such lien. All sums paid by Landlord for such purpose, and
all expenses (including attorneys' fees) incurred by it in connection therewith,
shall be payable to Landlord by Tenant on demand with interest at the rate of
ten percent (10%) per annum or the maximum rate permitted by law, whichever is
less. Landlord shall have the right at all times to post and, keep posted on the
Premises any notices permitted or required by law, or which Landlord shall deem
proper for the protection of Landlord, the Premises and the Project and any
other party having an interest therein, from mechanics' and material men's liens
and like liens. Tenant shall give Landlord at least fifteen (15) days prior
notice of the date of commencement of any construction on the Premises in order
to permit the posting of such notices. In the event Tenant is required to post
an improvement bond with a public agency in connection with any work performed
by Tenant on or to the Premises, Tenant shall include Landlord as an additional
obligee.

     11.  INSURANCE

     Tenant, at its sole cost and expense, shall keep in force during the term
(i) commercial general liability and property damage insurance with a combined
single limit of at least $5,000,000 per occurrence insuring against personal or
bodily injury to or death of persons occurring in, on or about the Premises or
Project and any and all liability of the insured with respect to, the Premises
or arising out of Tenant's maintenance, use of occupancy of the Premises and all
areas appurtenant thereto, (ii) direct physical loss-special insurance covering
the leasehold improvements in the Premises and all of Tenant's equipment, trade
fixtures, appliances, furniture, furnishings, and personal property from time to
time located in, on or about the Premises, with coverage in the amount of the
full replacement cost thereof, (iii) Worker's Compensation Insurance as required
by law, together with employer's liability coverage with a limit of not less
than $1,000,000 for bodily injury for each accident and for bodily injury by
disease for each employee. Tenant's commercial general liability and property
damage insurance
<PAGE>   15
and Tenant's Workers Compensation Insurance shall be endorsed to provide that
said insurance shall not be canceled or reduced except upon at least thirty
(30) days prior written notice to Landlord and (iv) full replacement cost plate
glass insurance. Further, Tenant's commercial general liability and property
damage insurance shall be primary and shall name Landlord and McCandless Simons
Company, Inc., and their respective partners, officers, directors and employees
and such other persons or entities as directed from time to time by Landlord as
additional insured for all liability using ISO Bureau Form CG20111185 (or a
successor form); shall contain a severability of interest clause and a
cross-liability endorsement; shall be endorsed to provide that the limits and
aggregates apply per location using ISO Bureau Form CG25041185; and shall be
issued by an insurance company admitted to transact business in the State of
California and rated A+VIII or better in Best's Insurance Reports (or successor
report). The deductibles for all insurance required to be maintained by Tenant
hereunder shall be no more than $5,000 per occurrence. The commercial general
liability insurance carried by Tenant shall specifically insure the performance
by Tenant of the indemnification provisions set forth in paragraph 18 of this
lease provided, however, nothing contained in this paragraph 11 shall be
construed to limit the liability of Tenant under the indemnification provisions
set forth in said paragraph 18. If Landlord or any of the additional insured
named on any of Tenant's insurance, have other insurance which is applicable to
the covered loss on a contributing, excess or contingent basis, the amount of
the Tenant's insurance company's liability under the policy of insurance
maintained by Tenant shall not be reduced by the existence of such other
insurance. Any insurance carried by Landlord or any of the additional insured
named on Tenant's insurance policies shall be excess and non-contributing with
the insurance so provided by Tenant.

          Tenant shall, prior to the commencement of the term, provide Landlord
with a completed Certificate of Insurance, using a form acceptable in
Landlord's reasonable judgment, attaching thereto copies of all endorsements
required to be provided by Tenant under this lease. Tenant agrees to increase
the coverage or otherwise comply with changes in connection with said
commercial general liability, property damage, direct physical loss and
Worker's Compensation Insurance as Landlord or Landlord's lender may from time
to time require.

          Landlord shall obtain and keep in force a policy or policies of
insurance covering loss or damage to the Premises and Project, in the amount of
the full replacement value thereof, providing protection against those perils
included within the classification of "all risk" insurance, with increased cost
of reconstruction and contingent liability (including demolition), plus a
policy of rental income insurance in the amount of one hundred percent (100%)
of twelve (12) months' rent (including sums paid as additional rent) and such
other insurance as Landlord or Landlord's lender may from time to time require.
Landlord may, but shall not be obligated to, also obtain flood and/or
earthquake insurance. Landlord shall have no liability to Tenant if Landlord
elects not to obtain flood and/or earthquake insurance. The cost of all such
insurance purchased by Landlord, plus any charges for deferred payment of
premiums and the amount of any deductible incurred upon any covered loss within
the Project, shall be common area charges and Tenant shall pay to Landlord its
percentage share of such costs as provided in paragraph 16.

          Landlord and Tenant hereby mutually waive any and all rights of
recovery against one another for real or personal property loss or damage
occurring to the Premises or the Project, or any part thereof, or to any
personal property therein, from perils insured against under fire and extended
insurance and any other property insurance policies existing for the benefit of
the respective parties so long as such insurance permits waiver of liability
and contains a waiver of subrogation without additional premiums.

          If Tenant does not take out and maintain insurance as required
pursuant to this paragraph 11, Landlord may, but shall not be obligated to,
take out the necessary insurance and pay the premium therefor, and Tenant shall
repay to Landlord promptly on demand, as additional rent, the amount so paid.
In addition, Landlord may recover from Tenant and Tenant agrees to pay, as
additional rent, any and all reasonable expense (including attorney fees) and
damages which Landlord may sustain by reason of the failure of Tenant to obtain
and maintain such insurance, it being expressly declared that the expenses and
damages of Landlord shall not be limited to the amount of the premiums thereon.

     12.  UTILITIES AND SERVICE

          Tenant shall pay for all water, gas, light, heat, power, electricity,
telephone, trash pickup, sewer charges and all other services supplied to or
consumed on the Premises. In the event that any service is not separately
metered or billed to the Premises, the cost of such utility service or other
service shall be a common area charge and Tenant shall pay its percentage share
of such cost to Landlord as provided in paragraph 16. In addition, the cost of
all utilities and services furnished by Landlord to the Common Area shall be a
common area charge and Tenant shall pay its percentage share of such cost to
Landlord as provided in paragraph 16.

          If Tenant's use of any such utility or service is materially in
excess of the average furnished to the other tenants of the Project, and such
utility or service is not separately metered, then Tenant shall pay to Landlord
upon demand, as additional rent, the full cost of such excess use, or Landlord
may cause such utility or service to be separately metered, in which case
Tenant shall pay the full cost of such utility or service and reimburse
Landlord upon demand for the cost of installing the separate meter.
<PAGE>   16
        Landlord shall not be liable for, and Tenant shall not be entitled to
any abatement or reduction of rent by reason of, the failure of any person or
entity to furnish any of the foregoing services when such failure is caused by
accident, breakage, repairs, strikes, lockouts or other labor disturbances or
labor disputes of any character, governmental moratoriums, regulations or other
governmental actions, or by any other cause, similar or dissimilar, beyond the
reasonable control of Landlord. In addition, Tenant shall not be relieved from
the performance of an covenant or agreement in this lease because of any such
failure, and no eviction of Tenant shall result from such failure.

     13.   TAXES AND OTHER CHARGES

           All real estate taxes and assessments and other taxes, fees and
charges of every kind or nature, foreseen or unforeseen, which are levied,
assessed or imposed upon Landlord and/or against the Premises, building, Common
Area or Project, or any part thereof by any federal, state, county, regional,
municipal or other governmental or quasi-public authority, together with any
increases therein for any reason, shall be a common area charge and Tenant shall
pay its percentage share of such costs to Landlord as provided in paragraph 16.
By way of illustration and not limitation, "other taxes, fees and charges" as
used herein include any and all taxes payable by Landlord (other than state and
federal personal or corporate income taxes measured by the net income of
Landlord from all sources, and premium taxes), whether or not now customary or
within the contemplation of the parties hereto, (i) upon, allocable to, or
measured by the rent payable hereunder, including, without limitation, any gross
income or excise tax levied by the local, state or federal government with
respect to the receipt of such rent, (ii) upon or with respect to the
possession, leasing, operation, management, maintenance, alteration, repair, use
or occupancy by Tenant of the Premises or any part thereof, (iii) upon or
measured by the value of Tenant's personal property or leasehold improvements
located in the Premises, (iv) upon this transaction or any document to which
Tenant is a party creating or transferring an interest or estate in the
Premises, (v) upon or with respect to vehicles, parking or the number of persons
employed in or about the Project, and (vi) any tax, license, franchise fee or
other imposition upon Landlord which is otherwise measured by or based in whole
or in part upon the Project or any portion thereof. If Landlord contests any
such tax, fee or charge, the cost and expense incurred by Landlord thereby
(including, but not limited to, costs of attorneys and experts) shall also be
common area charges and Tenant shall pay its percentage share of such costs to
Landlord as provided in paragraph 16. In the event the Premises and any
improvements installed therein by Tenant or Landlord are valued by the assessor
disproportionately higher than those of other tenants on the building or Project
or in the event alterations or improvements are made to the Premises, Tenant's
percentage share of such taxes, assessments, fees and/or charges shall be
readjusted upward accordingly and Tenant agrees to pay such readjusted share.
Such determination shall be made by Landlord from the respective valuations
assigned in the assessor's work sheet or such other information as may be
reasonably available and Landlord's determination thereof shall be conclusive.

           Tenant agrees to pay, before delinquency, any and all taxes levied or
assessed during the term hereof upon Tenant's equipment, furniture, fixtures and
other personal property located in the Premises, including carpeting and other
property installed by Tenant notwithstanding that such carpeting or other
property has become a part of the Premises. If any of Tenant's personal property
shall be assessed with the Project, Tenant shall pay to Landlord, as additional
rent, the amount attributable to Tenant's personal property within ten (10) days
after receipt of a written statement from Landlord setting forth the amount of
such taxes, assessments and public charges attributable to Tenant's personal
property.

     14.    ENTRY BY LANDLORD

           Landlord reserves, and shall at all reasonable times have, the right
to enter the Premises (i) to inspect the Premises, (ii) to supply services to be
provided by Landlord hereunder, (iii) to show the Premises to prospective
purchasers, lenders or tenants and to put 'for sale' or 'for lease' signs
thereon, (iv) to post notices required or allowed by this lease or by law, (v)
to alter, improve or repair the Premises and any portion of the Project, and
(vi) to erect scaffolding and other necessary structures in or through the
Premises or the Project where reasonably required by the character of the work
to be performed. Landlord shall not be liable in any manner for any
inconvenience, disturbance, loss of business, nuisance or other damage arising
from Landlord's entry and acts pursuant to this paragraph and Tenant shall not
be entitled to an abatement or reduction of rent if Landlord exercises any
rights presented in this paragraph. For each of the foregoing purposes, Landlord
shall at all times have and retain a key with which to unlock all of the doors
in, on and about the Premises (excluding Tenant's vaults, safes and similar
areas designated in writing by Tenant in advance), and Landlord shall have the
right to use any and all means which Landlord may deem proper to open said doors
in an emergency in order to obtain entry to the Premises. Any entry by Landlord
to the Premises pursuant to this paragraph shall not under any circumstances be
construed or deemed to be a forcible or unlawful entry into or a detainer of the
Premises or an eviction, actual or constructive, of Tenant from the premises or
any portion thereof. Notwithstanding the foregoing, and except in the case of
emergency, Landlord shall give Tenant at least twenty-four (24) hours prior
notice of its intent to enter the Premises.

<PAGE>   17

     15.   COMMON AREA; PARKING

           Subject to the terms and conditions of this lease and such rules and
regulations as Landlord may from time to time prescribe and so long as such
rules and regulations do not conflict with the terms and conditions of this
lease, Tenant and Tenant's employees and invitees shall, in common with other
occupants of the Project, and their respective employees and invitees and others
entitled to the use thereof, have the non-exclusive right to use the access
roads, parking areas and facilities within the Project provided and designated
by Landlord for the general use and convenience of the occupants of the Project
which areas and facilities shall include, but not be limited to, sidewalks,
parking, refuse, landscape and plaza areas, roofs and building exteriors, which
areas and facilities are referred to herein as "Common Area". This right shall
terminate upon the termination of this lease.

           Landlord reserves the right from time to time to make changes in the
shape, size, location, amount and extent of the Common Area. Landlord shall also
have the right at any time to change the name, number or designation by which
the Project is commonly known. Landlord further reserves the right to promulgate
such rules and regulations relating to the use of the Common Area, and any part
thereof, as Landlord may deem appropriate for the best interests of the
occupants of the Project. The rules and regulations shall be binding upon Tenant
upon delivery of a copy of them to Tenant and Tenant shall abide by them and
cooperate in their observance. Such rules and regulations may be amended by
Landlord from time to time, with or without advance notice.

           Tenant shall have the non-exclusive use of seventy-five (75) parking
spaces in the Common Area as designated from time to time by Landlord. Landlord
reserves the right at its sole option to assign and label parking spaces, but it
is specifically agreed that Landlord is not responsible for policing any such
parking spaces. Tenant shall not at any time park or permit the parking of
Tenant's trucks or other vehicles, or the trucks or other vehicles of others,
adjacent to loading areas so as to interfere in any way with the use of such
areas; nor shall Tenant at any time park or permit the parking of Tenant's
vehicles or trucks, or other vehicles or trucks of Tenant's suppliers or others,
in any portion of the Common Area not designated by Landlord for such use by
Tenant. Tenant shall not park or permit any inoperative vehicle or equipment to
be parked on any portion of the Common Area. Tenant shall not permit, allow or
place any type of circulars or advertisements on vehicles parking in the Common
Area. Tenant shall not use any Common Area, including the space directly
adjacent to the Premises for sales or displays.

           Landlord shall operate, manage and maintain the Common Area. The
manner in which the Common Area shall be operated, managed and maintained and
the expenditures for such operation, management and maintenance shall be at the
sole discretion of Landlord. The cost of such maintenance, operation and
management of the Common Area, including but not limited to landscaping, repair
of paving, parking lots and sidewalks, repaving, resurfacing, repairs,
replacements, painting, lighting, cleaning, trash removal, roof replacement and
repair, heating, ventilating and air-conditioning repair and replacement, fire
protection and similar items; non-refundable contributions toward one or more
reserves for replacements other than equipment; rental on equipment; security
and exterminator services and salaries and employee benefits (including union
benefits) of on-site and accounting personnel engaged in such maintenance and
operations management, shall be a common area charge and Tenant shall pay to
Landlord its percentage share of such costs as provided in paragraph 16.

     16.   COMMON AREA CHARGES

           Tenant shall pay to Landlord, as additional rent, an amount equal to
One Hundred percent (100.00%) of the total common area charges as defined below.
Tenant's percentage share of common area charges shall be paid as follows:

           Tenant's estimated monthly payment of common area charges payable by
Tenant during the calendar year in which the term commences is set forth in
paragraph 4(b) of this lease. Prior to the commencement of each succeeding
calendar year of the term (or as soon as practicable thereafter), Landlord shall
deliver to Tenant a written estimate of Tenant's monthly payment of common area
charges. Tenant shall pay, as additional rent, on the first day of each month
during the term in accordance with paragraph 4(b) of the lease, its monthly
share of common area charges as estimated by Landlord. Within one hundred twenty
(120) days of the end of each calendar year and of the termination of this lease
(or as soon as practicable thereafter), Landlord shall deliver to Tenant a
statement of actual common area charges incurred for the preceding year. If such
statement shows that Tenant has paid less than its actual percentage then Tenant
shall on demand pay to Landlord the amount of such deficiency. If Tenant fails
to pay such deficiency due within ten (10) days after demand, Tenant shall pay
an additional ten percent (10%) of the amount due as a penalty. If such
statement shows that Tenant has paid more than its actual percentage share then
Landlord shall, at its option, promptly refund such excess to Tenant or credit
the amount thereof to the common area charge next becoming due from Tenant.
Landlord reserves the right to revise any estimate of common area charges if
actual or projected common area charges show an increase or decrease in excess
of 10% from any earlier estimate for the same period. In such event, Landlord
shall deliver the revised estimate to Tenant, together with an explanation of
the reasons therefor, and Tenant shall revise its payments accordingly.
Landlord's and Tenant's obligation with respect to adjustments at the end of the
term or earlier expiration of this lease shall survive such termination or
expiration.
<PAGE>   18

           "Common area charges," as used in this lease, shall include, but not
be limited to, (i) all items identified in paragraphs 8, 9, 11, 12, 13 and 15
as being common area charges; (ii) amortization of such capital improvements
having a useful life greater than one year as Landlord may have installed for
the purpose of reducing operating costs and/or to comply with governmental rules
and regulations promulgated after completion of the building (Tenant's share of
any such capital improvement shall equal Tenant's proportionate share of the
fraction of the cost of such capital improvement equal to the remaining term of
the lease over the useful life of such capital improvement); (iii) salaries and
employee benefits (including union benefits) of personnel engaged in the
operation and maintenance of the Project (or the building in which the Premises
are located) and payroll taxes applicable thereto; (iv) supplies, materials,
equipment and tools used or required in connection with the operation and
maintenance of the Project: (v) licenses, permits and inspection fees; (vi) a
reasonable reserve for repairs and replacement of equipment used in the
maintenance and operation of the Project; (vii) all other operating costs
incurred by Landlord in maintaining and operating the Project; and (viii) an
amount equal to five percent (5%) of the actual expenditures for the aggregate
of all other common area charges as compensation for Landlord's accounting and
processing services.

     17.   DAMAGE BY FIRE; CASUALTY

           In the event the Premises are damaged by any casualty which is fully
covered under an insurance policy required to be maintained by Landlord pursuant
to paragraph 11, Landlord shall be entitled to the use of all insurance proceeds
and shall repair such damage as soon as reasonably possible and this lease shall
continue in full force and effect.

           In the event the Premises are damaged by any casualty not fully
covered under an insurance policy required to be maintained pursuant to
paragraph 11, Landlord may, at Landlord's option, either (i) repair such damage,
at Landlord's expense, as soon as reasonably possible, in which event this lease
shall continue in full force and effect, or (ii) give written notice to Tenant
within thirty (30) days after the date of the occurrence of such damages of
Landlord's intention to cancel and terminate this lease as of the date of the
occurrence of the damages; provided, however, that if such damage is caused by
an act or omission of Tenant or its agent, servants or employees, then Tenant
shall repair such damage promptly at its sole cost and expense. In the event
Landlord elects to terminate this lease pursuant hereto, Tenant shall have the
right within ten (10) days after receipt of the required notice to notify
Landlord in writing of Tenant's intention to repair such damage at Tenant's
expense, without reimbursement from Landlord, in which event this lease shall
continue in full force and effect and Tenant shall proceed to make such repairs
as soon as reasonably. possible. If Tenant does not give such notice within the
ten (10) day period, this lease shall be canceled and terminated as of the date
of the occurrence of such damage. Under no circumstances shall Landlord be
required to repair any injury or damage to (by fire or other cause), or to make
any restoration or replacement of, any of Tenant's personal property, trade
fixtures or property leased from third parties, whether or not the same is
attached to the Premises.

           If the Premises are totally destroyed during the term from any cause
(including any destruction required by any authorized public authority), whether
or not covered by the insurance required under paragraph 11, this lease shall
automatically terminate as of the date of such total destruction; provided,
however, that if the Premises can reasonably and lawfully be repaired or
restored within twelve (12) months of the date of destruction to substantially
the condition existing prior to such destruction and if the proceeds of the
insurance payable to the Landlord by reason of such destruction are sufficient
to pay the cost of such repair or restoration, then the insurance proceeds shall
be so applied, Landlord shall promptly repair and restore the Premises and this
lease shall continue, without interruption, in full force and effect. If the
Premises are totally destroyed during the last twelve (12) months of the term,
either Landlord or Tenant may at either parties' option cancel and terminate
this lease as of the date of occurrence of such damage by giving written notice
to the other of its' election to do so within thirty (30) days after the
occurrence of such damage.

           If the Premises are partially or totally destroyed or damaged and
Landlord or Tenant repair them pursuant to this lease, the rent payable
hereunder for the period during which such damage and repair continues shall be
abated only in proportion to the square footage of the Premises rendered
untenantable to Tenant by such damage or destruction. Tenant shall have no claim
against Landlord for any damage, loss or expense suffered by reason of any such
damage, destruction, repair or restoration or Landlord's election under this
paragraph 17 not to repair or restore such damage or destruction. The parties
waive the provisions of California Civil Code sections 1932(2) and 1933(4)
(which provisions permit the termination of a lease upon destruction of the
leased premises), and hereby agree that the provisions of this paragraph 17
shall govern in the event of such destruction.

     18.   INDEMNIFICATION

           Landlord shall not be liable to Tenant and Tenant hereby waives all
claims against Landlord for any injury to or death of any person or damage to or
destruction of property in or about the Premises or the Project (including but
not limited to damage to person or property caused by water leakage of any
character from the roof, walls, ceiling, basement or other portions of the
Project or caused by gas, fire, oil, fumes, electricity, steam or land or
structural movement) by or from any cause whatsoever except the material failure
of Landlord to perform its obligations under this lease where such failure has
persisted for an unreasonable period of time after written notice of such
failure.

<PAGE>   19

Without limiting the foregoing, Landlord shall not be liable to Tenant for any
injury to or death of any person or damages to or destruction of property by
reason of, or arising from, any latent defect in the Premises or Project or the
act or negligence of any other tenant of the Project. Tenant shall immediately
notify Landlord of any defect in the Premises or Project.

           Except as to injury to persons or damage to property the principal
cause of which is the material failure by Landlord to observe any of the terms
and conditions of this lease where such failure has persisted for an
unreasonable period of time after written notice of such failure, Tenant shall
hold Landlord harmless from and defend Landlord against any claim, liability,
loss, damage or expense (including attorney fees) arising out of any injury to
or death of any person or damage to or destruction of property occurring in, on
or about the Premises from any cause whatsoever or on account of the use,
condition, occupational safety or occupancy of the Premises. Tenant shall
further hold Landlord harmless from and defend Landlord against any claim,
liability, loss, damage or expense (including reasonable attorney fees) arising
(i) from Tenant's use of the Premises or from the conduct of its business or
from any activity or work done, permitted or suffered by Tenant or its agents or
employees in or about the Premises or Project, (ii) out of the failure of Tenant
to observe or comply with Tenant's obligation to observe and comply with laws or
other requirements as set forth in paragraph 7, (iii) by reason of Tenant's use,
handling, storage, or disposal of toxic or hazardous materials or waste, (iv) by
reason of any labor or service performed for, or materials used by or furnished
to, Tenant or any contractor engaged by Tenant with respect to the Premises, or
(v) from any other act, neglect, fault or omission of Tenant or its agents,
employees or invitees. The provisions of this paragraph 18 shall survive the
expiration or earlier termination of this lease.

     19.   ASSIGNMENT AND SUBLETTING

           Tenant shall not voluntarily assign, encumber or otherwise transfer
its interest in this lease or in the Premises, or sublease all or any part of
the Premises, or allow any other person, concessionaire or entity to occupy or
use all or any part of the Premises, without first obtaining Landlord's written
consent (which consent shall not be unreasonably withheld) and otherwise
complying with the requirements of this paragraph 19. Any assignment,
encumbrance or sublease without Landlord's consent, shall constitute a default.

           If Tenant desires to sublet or assign all or any portion of the
Premises, Tenant shall give Landlord written notice thereof, specifying the
projected commencement date of the proposed sublet or assignment (which date
shall be not less than thirty (30) days or more than ninety (90) days after the
date of such notice), the portions of the Premises proposed to be sublet or
assigned, and the identity of the proposed assignee or subtenant. Tenant shall
further provide Landlord with such other information concerning the proposed
assignee or subtenant as requested by Landlord. Any proposed assignee or
subleases must agree to assume and agree to perform all the covenants and
conditions of Tenant under this lease. In the case of any proposed assignment,
or in the case of a proposed sublet of fifty percent (50%) or more of the
Premises at a time when Tenant has not occupied the Premises, or if the proposed
sublet is for fifty percent (50%) or more of the Premises for a sublet term
ending within the last twelve (12) months of the term of this lease, Landlord
shall have the right, exercisable by written notice to be delivered to Tenant
within thirty (30) days of receipt of Tenant's notice, to terminate this lease
effective as of the date specified in Tenant's notice as the proposed
commencement date of the assignment or sublease. If Landlord does not elect to
terminate this lease and if Landlord consents in writing to the proposed
assignment or sublet (regardless of whether Landlord had a termination right),
Tenant shall be free to assign or sublet all or a portion of the Premises
subject to the following conditions: (i) any sublease shall be on the same terms
set forth in the notice given to Landlord; (ii) no sublease shall be valid and
no subtenant shall take possession of the sublet premises until an executed
counterpart of such sublease has been delivered to Landlord; (iii) no subtenant
shall have a further right to sublet; (iv) any sums or other economic
consideration received by Tenant as a result of such assignment or sublet
(except rental or other payments received which are attributable to the
amortization over the term of this lease of the cost of leasehold improvements
constructed for such assignees or subtenant, and brokerage fees) whether
denominated rentals or otherwise, which exceed, in the aggregate, the total sums
which Tenant is obligated to pay Landlord under this lease (prorated to reflect
obligations allocable to that portion of the Premises subject to such sublease),
shall be shared equally between Landlord and Tenant (50%/50%) and (v) no sublet
or assignment shall release Tenant of Tenant's obligation or alter the primary
liability of Tenant to pay the rent and to perform all other obligations to be
performed by Tenant hereunder. Tenant shall pay to Landlord promptly upon demand
as additional rent, Landlord's actual attorneys' fees and other costs incurred
for reviewing, processing or documenting any requested assignment or sublease,
whether or not Landlord's consent is granted.

           If Tenant is a partnership, a withdrawal or change, voluntary or
involuntary or by operation of law, of any general partner or the dissolution of
the partnership shall be deemed an assignment of this lease subject to all the
conditions of this paragraph 19. If Tenant is a corporation any dissolution,
merger, consolidation or other reorganization of Tenant or the sale or other
transfer of a controlling percentage of the capital stock of Tenant or the sale
of more than fifty percent (50%) of the value of Tenant's assets shall be an
assignment of this lease subject to all the conditions of this paragraph 19. The
term "controlling percentage" means the ownership of, and the right to vote,
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. This
paragraph shall not apply if Tenant is a corporation the

<PAGE>   20

stock of which is traded through an exchange.

           The acceptance of rent by Landlord from any other person shall not be
deemed to be a waiver by Landlord of any provision hereof. Consent to one
assignment or sublet shall not be deemed consent to any subsequent assignment or
sublet. In the event of default by any assignee of Tenant or any successor of
Tenant in the performance of any of the terms hereof, Landlord may proceed
directly against Tenant without the necessity of exhausting remedies against
such assignee or successor. Landlord may consent to subsequent assignments or
sublets of this lease or amendments or modifications to this lease with
assignees of Tenant, without notifying Tenant, or any successor of Tenant, and
without obtaining its or their consent thereto and such action shall not relieve
Tenant of liability under this lease.

           No interest of Tenant in this lease shall be assignable by operation
of law (including, without limitation, the transfer of this lease by testacy or
intestacy). Each of the following acts shall be considered an involuntary
assignment: (i) if Tenant is or becomes bankrupt or insolvent, makes an
assignment for the benefit of creditors or institutes a proceeding under the
Bankruptcy Act in which Tenant is the bankrupt; or, if Tenant is a partnership
or consists of more than one person or entity, if any partner of the partnership
or other person or entity is or becomes bankrupt or insolvent, or makes an
assignment for the benefit of creditors; (ii) if a writ of attachment or
execution is levied on this lease; or (iii) if, in any proceeding or action to
which Tenant is a party, a receiver is appointed with authority to take
possession of the Premises. An involuntary assignment shall constitute a default
by Tenant and Landlord shall have the right to elect to terminate this lease, in
which case this lease shall not be treated as an asset of Tenant.

           Tenant immediately and irrevocably assigns to Landlord, as security
for Tenant's obligations under this lease, all rent from any subletting of all
or a part of the Premises as permitted by this lease, and Landlord, as assignee
and as attorney-in fact for Tenant, or a receiver of Tenant appointed on
Landlord's application may collect such rent and apply it toward Tenant's
obligations under this lease; except that, until the occurrence of an act or
default by Tenant, Tenant shall have the right to collect such rent, subject to
promptly forwarding to Landlord any portion thereof to which Landlord is
entitled pursuant to this paragraph 19.

           Notwithstanding the above requirement that Tenant obtain the consent
of Landlord prior to any assignment or sublet, Tenant may, without obtaining the
prior consent of Landlord, assign or sublease the whole or any part of the
Premises to any corporation or other entity which is wholly owned by Tenant or
of which Tenant is a wholly owned subsidiary, or which is wholly owned by either
of the foregoing or which merges with Tenant provided that (i) Tenant shall give
written notice thereof to Landlord in the manner required for other assignments
or subleases by this paragraph 19; (ii) Tenant shall continue to be fully
obligated under this lease; (iii) any such assignee or sublessee shall expressly
assume and agree to perform all of the terms and conditions of this lease to be
performed by Tenant; and (iv) any such assignment of sublet shall be subject to
all other terms and conditions of this paragraph 19 pertaining to assignments
and/or sublets (excepting only the requirement concerning prior written consent
of Landlord).

     20.   DEFAULT

           The occurrence of any of the following shall constitute a default by
Tenant: (i) failure of Tenant to pay any rent or other sum payable hereunder
within five (5) days of when due; (ii) abandonment of the Premises (Tenant's
failure to occupy and conduct business in the Premises for fourteen (14)
consecutive days shall be deemed an abandonment); or (iii) failure of Tenant to
perform any other term, covenant or condition of this lease if the failure to
perform is not cured within thirty (30) days after notice thereof has been given
to Tenant (provided that if such default cannot reasonably be cured within
thirty (30) days, Tenant shall not be in default if Tenant commences to cure
such failure to perform within the thirty (30) day period and diligently and in
good faith continues to cure the failure to perform). The notice referred to in
clause (iii) above shall specify the failure to perform and the applicable lease
provision and shall demand that Tenant perform the provisions of this lease
within the applicable period of time. No notice shall be deemed a forfeiture or
termination of this lease unless Landlord so elects in the notice. No notice
shall be required in the event of abandonment or vacation of the Premises.

           In addition to the above, the occurrence of any of the following
events shall also constitute a default by Tenant: (i) Tenant fails to pay its
debts as they become due or admits in writing its inability to pay its debts, or
makes a general assignment for the benefit of creditors (for purposes of
determining whether Tenant is not paying its debts as they become due, a debt
shall be deemed overdue upon the earliest to occur of the following: thirty (30)
days from the date a statement therefor has been rendered; the date on which any
action or proceeding therefor is commenced; or the date on which a formal notice
of default or demand has been sent); (ii) Tenant fails to furnish Landlord a
schedule of Tenant's aged accounts payable within ten (10) days after Landlord's
written request; (iii) any financial statements given to Landlord by Tenant, any
assignee of Tenant, subtenant of Tenant, any guarantor of Tenant, or successor
in interest of Tenant (including, without limitation, any schedule of Tenant's
aged accounts payable) are materially false. At any time during the term of this
lease Landlord, at Landlord's option, shall have the right to receive from
Tenant upon Landlord's request, a current annual balance sheet for Landlord's
review. If the balance sheet shows a negative net worth,

<PAGE>   21

        Landlord may terminate this lease by giving Tenant sixty (60) days prior
notice.

           In the event of a default by Tenant, then Landlord, in addition to
any other rights and remedies of Landlord at law or in equity, shall have the
right either to terminate Tenant's right to possession of the Premises (and
thereby terminate this lease) or, from time to time and without termination of
this lease, to relet the premises or any part thereof for the account and in the
name of Tenant for such term and on such terms and conditions as Landlord in its
sole discretion may deem advisable, with the right to make alterations and
repairs to the Premises.

           Should Landlord elect to keep this lease in full force and effect,
Landlord shall have the right to enforce all of Landlord's rights and remedies
under this lease, including but not limited to the right to recover and to relet
the Premises. If Landlord relets the Premises, then Tenant shall pay to
Landlord, as soon as ascertained, the costs and expenses incurred by Landlord in
such reletting and in making alterations and repairs. Rentals received by
Landlord from such reletting shall be applied (i) to the payment of any
indebtedness due hereunder, other than basic rent and common area charges, from
Tenant to Landlord; (ii) to the payment of the cost of any repairs necessary to
return the Premises to good condition normal wear and tear excepted, including
the cost of alterations and the cost of storing any of Tenant's property left on
the Premises at the time of reletting; and (iii) to the payment of basic rent or
common area charges due and unpaid hereunder. The residue, if any, shall be held
by Landlord and applied in payment of future rent or damages in the event of
termination as the same may become due and payable hereunder and the balance,
if any at the end of the term of this lease, shall be paid to Tenant. Should the
basic rent and common area charges received from time to time from such
reletting during any month be less than that agreed to be paid during that month
by Tenant hereunder, Tenant shall pay such deficiency to Landlord. Such
deficiency shall be calculated and paid monthly. No such reletting of the
Premises by Landlord shall be construed as an election on its part to terminate
this lease unless a notice of such intention is given to Tenant or unless the
termination hereof is decreed by a court of competent jurisdiction.
Notwithstanding any such reletting without termination, Landlord may at any time
thereafter elect to terminate this lease for such previous breach, provided it
has not been cured. Landlord shall have the remedy described in California Civil
Code section 1951.4 (Landlord may continue the lease in effect after Tenant's
breach and abandonment and recover as rent as it becomes due, if Tenant has the
right to sublet or assign, subject only to reasonable limitations).

           Should Landlord at any time terminate this lease for any breach, in
addition to any other remedy it may have, it shall have the immediate right of
entry and may remove all persons and property from the Premises and shall have
all the rights and remedies of a landlord provided by California Civil Code
Section 1951.2 or any successor code section. Upon such termination, in addition
to all its other rights and remedies, Landlord shall be entitled to recover from
Tenant all damages it may incur by reason of such breach, including the cost of
recovering the Premises and including (i) the worth at the time of award of the
unpaid rent which had been earned at the time of termination; (ii) the worth at
the time of award of the amount by which the unpaid rent which would have been
earned after termination until the time of award exceeds the amount of such
rental loss that Tenant proves could have been reasonably avoided; (iii) the
worth at the time of the award of the amount by which the unpaid rent for the
balance of the term after the time of award exceeds the amount of such rental
loss that Tenant proves could be reasonably avoided; and (iv) any other amount
necessary to compensate Landlord for all the detriment proximately caused by
Tenant's failure to perform its obligations under this lease or which in the
ordinary course of events would be likely to result therefrom. The "worth at the
time of award of the amounts referred to in (i) and (ii) above is computed by
allowing interest at the rate of twelve percent (12%) per annum or the maximum
rate permitted by law, whichever is less. The "worth at the time of award of the
amount referred to in (iii) above 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%). Property removed from the Premises may be stored in
a public or private warehouse or elsewhere at the sole cost and expense of
Tenant. In the event that Tenant shall not immediately pay the cost of storage
of such property after the same has been stored for a period of thirty (30) days
or more, Landlord may sell any or all thereof at a public or private sale in
such manner and at such times and places that Landlord, in its sole discretion,
may deem proper, without notice to or demand upon Tenant.

     21.   LANDLORD'S RIGHT TO CURE TENANT'S DEFAULT

           Landlord, at any time after Tenant commits a default, may, but shall
not be obligated to, cure the default at Tenant's cost. If Landlord at any time,
by reason of Tenant's default, pays any sum or does any act that requires the
payment of any sum, the sum paid by Landlord shall be due immediately from
Tenant to Landlord and shall bear interest at the rate of twelve percent (12%)
per annum or the maximum rate permitted by law, whichever is less, from the date
the sum is paid by Landlord until Landlord is reimbursed by Tenant. Amounts due
Landlord hereunder shall be additional rent.

     22.   EMINENT DOMAIN

           If all or any part of the Premises shall be taken by any public or
quasi-public authority under the power of eminent domain or conveyance in lieu
thereof, this lease shall terminate as to any portion of the Premises so taken
or conveyed on the date when title vests in the condemnor, and Landlord shall be
entitled to any and all payments, income, rent, award or any interest therein
whatsoever which may be paid or made in connection with such taking or
conveyance. Tenant shall

<PAGE>   22

have no claim against Landlord or otherwise for the value of any unexpired term
of this lease. Notwithstanding the foregoing, Tenant shall be entitled to any
compensation for depreciation to and cost of removal of Tenant's equipment and
fixtures and any compensation for its relocation expenses necessitated by such
taking, but in each case only to the extent the condemning authority makes a
separate award therefor or specifically identifies a portion of the award as
being therefor. Each party waives the provisions of Section 1265.130 of the
California Code of Civil Procedure (which section allows either party to
petition the Superior Court to terminate this lease in the event of a partial
taking of the Premises).

           If any action or proceeding is commenced for such taking of the
Premises or any portion thereof or of any other space in the Project, or if
Landlord is advised in writing by any entity or body having the right or power
of condemnation of its intention to condemn the Premises or any portion thereof
or of any other space in the Project, and Landlord shall decide to discontinue
the use and operation of the Project or decide to demolish, alter or rebuild the
Project, then Landlord shall have the right to terminate this lease by giving
Tenant written notice thereof within sixty (60) days of the earlier of the date
of Landlord's receipt of such notice of intention to condemn or the commencement
of said action or proceeding. Such termination shall be effective as of the last
day of the calendar month next following the month in which such notice is given
or the date on which title shall vest in the condemnor, whichever occurs first.
In the event of a partial taking, or conveyance in lieu thereof, of the Premises
and fifty percent (50%) or more of the number of square feet in the Premises are
taken then Tenant may terminate this lease. Any election by Tenant to so
terminate shall be by written notice given to Landlord within sixty (60) days
from the date of such taking or conveyance and shall be effective on the last
day of the calendar month next following the month in which such notice is given
or the date on which title shall vest in the condemnor, whichever occurs first.

           If a portion of the Premises is taken by power of eminent domain or
conveyance in lieu thereof and neither Landlord nor Tenant terminates this lease
as provided above, then this lease shall continue in full force and effect as to
the part of the Premises not so taken or conveyed and all payments of rent shall
be apportioned as of the date of such taking or conveyance so that thereafter
the amounts to be paid by Tenant shall be in the ratio that the area of the
portion of the Premises not so taken bears to the total area of the Premises
prior to such taking.

     23.   NOTICE AND COVENANT TO SURRENDER

           On the last day of the term or on the effective date of any earlier
termination, Tenant shall surrender to Landlord the Premises and all of Tenant's
improvements and alterations in their condition existing as of the commencement
of the term (normal wear and tear excepted), with all originally painted
interior walls washed or repainted if marked or damaged, interior vinyl covered
walls cleaned and repaired or replaced if marked or damaged, all carpets
shampooed and cleaned, the air conditioning and heating system serviced and
repaired by a reputable and licensed service firm (unless Landlord has elected
to maintain such system pursuant to paragraph 8) and all floors cleaned and
waxed; all to the reasonable satisfaction of Landlord, Tenant shall remove all
of Tenant's personal property and trade fixtures, together with improvements or
alterations that Tenant is obligated to remove pursuant to the provisions of
paragraph 8, from the Premises, and all such property not removed shall be
deemed abandoned.

           If the Premises are not surrendered as required in this paragraph,
Tenant shall indemnify Landlord against all loss, liability and expense
(including but not limited to, attorney fees) resulting from the failure by
Tenant in so surrendering the Premises, including, without limitation, any
claims made by any succeeding tenants. It is agreed between Landlord and Tenant
that the provisions of this paragraph shall survive termination of this lease.

     24.   TENANTS QUITCLAIM

           At the expiration or earlier termination of this lease, Tenant shall
execute, acknowledge and deliver to Landlord, within ten (10) days after written
demand from Landlord to Tenant, any quitclaim deed or other document required to
remove the cloud or encumbrance created by this lease from the real property of
which the Premises are a part. This obligation shall survive said expiration or
termination.

     25.   HOLDING OVER

           Any holding over after the expiration or termination of this lease
with the written consent of Landlord shall be construed to be a tenancy from
month to month at double the monthly rent as adjusted, in effect on the date of
such expiration or termination. All provisions of this lease, except those
pertaining to the term and any option to extend, shall apply to the month to
month tenancy. The provisions of this paragraph are in addition to, and do not
affect, Landlord's right of reentry or other rights hereunder or provided by
law.

           If Tenant shall retain possession of the Premises or any part thereof
without Landlord's consent following the expiration or sooner termination of
this lease for any reason, then Tenant shall pay to Landlord for each day of
such retention double the amount of the daily rental in effect during the last
month prior to the date of such expiration or termination. Tenant shall also
indemnify and hold

<PAGE>   23
Landlord harmless from any loss, liability and expense (including, but not
limited to, attorneys fees) resulting from delay by Tenant in surrendering the
Premises, including without limitation any claims made by any succeeding tenant
founded on such delay. Acceptance of rent by Landlord following expiration or
termination shall not constitute a renewal of this lease, and nothing contained
in this paragraph shall waive Landlord's right to re-entry or any other right.
Tenant shall be only a Tenant at sufferance, whether or not Landlord accepts any
rent from Tenant, while Tenant is holding over without Landlord's written
consent.

     26.  SUBORDINATION

          In the event Landlord's title or leasehold interest is now or
hereafter encumbered in order to secure a loan to Landlord, Tenant shall, at the
request of Landlord or the tender, execute in writing an agreement subordinating
its rights under this lease to the lien of such encumbrance, or, if so
requested, agreeing that the lien of lender's encumbrance shall be or remain
subject and subordinate to the rights of Tenant under this lease. Tenant hereby
irrevocably appoints Landlord the attorney-in-fact of Tenant to execute, deliver
and record any such instrument or instruments for and in the name and on behalf
of Tenant. Notwithstanding any such subordination, Tenant's possession under
this lease shall not be disturbed if Tenant is not in default and so long as
Tenant shall pay all amounts due hereunder and otherwise observe and perform all
provisions of this lease. In addition, if in connection with any such loan the
lender shall request reasonable modifications of this lease as a condition to
such financing, Tenant will not unreasonably withhold, delay or defer its
consent thereof, provided that such modifications do not increase the
obligations of Tenant hereunder or materially adversely affect the leasehold
interest hereby created or Tenant's rights hereunder.

          Within ten (10) days after written request from Landlord, Tenant shall
deliver to Landlord such financial statements as are reasonably required by
Landlord or Landlord's lender to verify the net worth of Tenant. In addition,
Tenant shall deliver to Landlord's lender any financial statements required by
such holder to facilitate the financing or refinancing of Landlord's interest in
the Project. Tenant represents and warrants to Landlord that each such financial
statement is a true and accurate statement as of the date of such statement. All
financial statements shall be confidential and shall be used only for the
purposes set forth herein.

     27.  CERTIFICATE OF ESTOPPEL

          Each party shall, within five (5) calendar days after request
therefor, execute and deliver to the other party, in recordable form, a
certificate stating that the lease is unmodified and in full force and effect,
or in full force and effect as modified and stating the modifications. The
certificate shall also state the amount of the monthly rent, the date to which
monthly rent has been paid in advance, the amount of the security deposit and/or
prepaid monthly rent, and, if the request is made by Landlord, shall include
such other items as Landlord or Landlord's lender may reasonably request.
Failure to deliver such certificate within such time shall constitute a
conclusive acknowledgment by the party failing to deliver the certificate that
the lease is in full force and effect and has not been modified except as may be
represented by the party requesting the Certificate. Any such Certificate
requested by Landlord may be conclusively relied upon by any prospective
purchaser or encumbrance of the Premises or Project. Further, within five (5)
calendar days following written request made from time to time by Landlord,
Tenant shall furnish to Landlord current financial statements of Tenant.

     28.  SALE BY LANDLORD

          In the event the original Landlord hereunder, or any successor owner
of the Project or Premises, shall sell or convey the Project or Premises, all
liabilities and obligations on the part of the original Landlord, or such
successor owner, under this lease accruing thereafter shall terminate, and
thereupon all such liabilities and obligations shall be binding upon the new
owner. Tenant agrees to attorn to such new owner and to look solely to such new
owner for performance of any and all such liabilities and obligations.

     29.  ATTORNMENT TO LENDER OR THIRD PARTY

          In the event the interest of Landlord in the land and buildings in
which the Premises are located (whether such interest of Landlord is a fee title
interest or a leasehold interest) is encumbered by deed of trust, and such
interest is acquired by a lender or any other third party through judicial
foreclosure or by exercise of a power of sale at private trustee's foreclosure
sale, Tenant hereby agrees to release Landlord of any obligation arising on or
after any such foreclosure sale and to attorn to the purchaser at any such
foreclosure sale and to recognize such purchaser as the Landlord under this
lease.

     30.   DEFAULT BY LANDLORD

           Landlord shall not be in default unless Landlord fails to perform
obligations required of Landlord within a reasonable time but in no event
earlier than thirty (30) days after written notice by Tenant to Landlord and to
the holder of any first mortgage or deed of trust covering the Premises
specifying wherein Landlord has failed to perform such obligations; provided,
however, that if the nature of Landlord's obligations is such that more than
thirty (30) days are required for performance, then Landlord shall not be in
default if Landlord commences performance within such thirty (30) day
<PAGE>   24

period and thereafter diligently prosecutes the same to completion.

          If Landlord is in default of this lease, Tenant's sole remedy shall be
to institute suit against Landlord in a court of competent jurisdiction, and
Tenant shall have no right to offset any sums expended by Tenant as a result of
Landlord's default against future rent and other sums due and payable pursuant
to this lease. If Landlord is in default of this lease, and as a consequence
Tenant recovers a money judgment against Landlord, the judgment shall be
satisfied only out of the proceeds of sale received on execution of the judgment
and levy against the right, title and interest of Landlord in the Project of
which the Premises are a part, and out of rent or other income from such real
property receivable by Landlord or out of the consideration received by Landlord
from the sale or other disposition of all or any part of Landlord's right, title
and interest in the Project of which the Premises are a part. Neither Landlord
nor any of the partners comprising the partnership designated as Landlord shall
be personally liable for any deficiency.

     31.  CONSTRUCTION CHANGES

          It is understood that the description of the Premises and the location
of ductwork, plumbing and other facilities therein are subject to such changes
as Landlord or Landlord's architect determines to be desirable in the course of
construction of the Premises and/or the improvements constructed or being
constructed therein and no such changes or any changes in plans for any other
portions of the Project, shall affect this lease or entitle Tenant to any
reduction of rent hereunder or result in any liability of Landlord to Tenant.

     32.  MEASUREMENT OF PREMISES

          Tenant understands and agrees that any reference to square footage of
the Premises is approximate only and includes all interior partitions, columns
and exterior walls, and one-half of the partitions separating the Premises from
the rest of the Project, Tenant's proportionate share of the Common Area and, if
applicable, covered areas immediately outside the entry doors or loading docks.
Tenant waives any claim against Landlord regarding the accuracy of any such
measurement and agrees that there shall not be any adjustment in basic rent or
common area charges or other amounts payable hereunder by reason of inaccuracies
in such measurement.

     33.  ATTORNEY FEES

          If either party commences an action against the other party arising
out of or in connection with this lease, the prevailing party shall be entitled
to have and recover from the losing party all expenses of litigation, including,
without limitation, travel expenses, reasonable attorney fees, expert witness
fees, trial and appellate court costs, and deposition and transcript expenses.
If either party becomes a party to any litigation concerning this lease, or
concerning the Premises or the Project, by reason of any act or omission of the
other party or its authorized representatives, the party that causes the other
party to become involved in the litigation shall be liable to the other party
for all expenses of litigation reasonably incurred, including, without
limitation, travel expenses, attorney fees, expert witness fees, trial and
appellate court costs, and deposition and transcript expenses.

     34.  SURRENDER

          The voluntary or other surrender of this lease or the Premises by
Tenant, or a mutual cancellation of this lease, shall not work a merger, and at
the option of Landlord shall either terminate all or any existing subleases or
subtenancies or operate as an assignment to Landlord of all or any such
subleases or subtenancies.

     35.  WAIVER

          No delay or omission in the exercise of any right or remedy of either
party on any default by the other party shall impair such right or remedy or be
construed as a waiver. The receipt and acceptance by Landlord of delinquent rent
or other payments shall not constitute a waiver of any other default and
acceptance of partial payments shall not be construed as a waiver of the balance
of such payment due. No act or conduct of Landlord, including, without
limitation, the acceptance of keys to the Premises, shall constitute an
acceptance of the surrender of the Premises by Tenant before the expiration of
the term. Only a written notice from Landlord to Tenant shall constitute
acceptance of the surrender of the Premises and accomplish a termination of this
lease. Landlord's consent to or approval of any act by Tenant requiring
Landlord's consent or approval shall not be deemed to waive or render
unnecessary Landlord's consent to or approval of any subsequent act by Tenant.
Any waiver by Landlord of any default must be in writing and shall not be a
waiver of any other default concerning the same or any other provision of this
lease.

     36.  EASEMENTS; AIRSPACE RIGHTS

          Landlord reserves the right to alter the boundaries of the Project and
grant easements and dedicate for public use portions of the Project without
Tenant's consent, provided that no such grant or dedication shall interfere with
Tenant's use of the Premises or otherwise cause Tenant to incur cost or expense.
From time to time, and upon Landlord's demand, Tenant shall execute, acknowledge
and
<PAGE>   25
deliver to Landlord, in accordance with Landlord's instructions, any and all
documents, instruments, maps or plats necessary to effectuate Tenant's covenants
hereunder.

          This lease confers no rights either with regard to the subsurface of
or airspace above the land on which the Project is located or with regard to
airspace above the building of which the Premises are a part. Tenant agrees that
no diminution or shutting off of light or view by a structure which is or may be
erected (whether or not by Landlord) on property adjacent to the building of
which the Premises are a part or to property adjacent thereto, shall in any way
affect this lease, or entitle Tenant to any reduction of rent, or result in any
liability of Landlord to Tenant.

     37.  RULES AND REGULATIONS

          Landlord shall have the right from time to time to promulgate
reasonable rules and regulations for the safety, care and cleanliness of the
Premises, the Project and the Common Area, or for the preservation of good
order. On delivery of a copy of such rules and regulations to Tenant, Tenant
shall comply with the rules and regulations, and a violation of any of them
shall constitute a default by Tenant under this lease. If there is a conflict
between the rules and regulations and any of the provisions of this lease, the
provisions of this lease shall prevail. Such rules and regulations may be
amended by Landlord from time to time with or without advance notice. No such
rules and regulations shall require Tenant to pay additional rent under this
lease.

     38.  NOTICES

          All notices, demands, requests, consents and other communications
which may be given or are required to be given by either party to the other
shall be in writing and shall be sufficiently made and delivered if personally
served or if sent by United States first class mail, postage prepaid. All such
communications from Landlord to Tenant shall be addressed to Tenant at the
Premises. All such communications by Tenant to Landlord shall be sent to
Landlord at its offices at 360 S. San Antonio Road, Suite 14, Los Altos,
California 94022. Either party may change its address by notifying the other of
such change. Each such communication shall be deemed received on the date of the
personal service or mailing thereof in the manner herein provided, as the case
may be.

     39.  NAME

          Tenant shall not use the name of the Project for any purpose, other
than as the address of the business conducted by Tenant in the Premises, without
the prior written consent of Landlord.

     40.  GOVERNING LAW; SEVERABILITY

          This lease shall in all respects be governed by and construed in
accordance with the laws of the State of California. If any provision of this
lease shall be held or rendered invalid, unenforceable or ineffective for any
reason whatsoever, all other provisions hereof shall be and remain in full force
and effect.

     41.  DEFINITIONS

          As used in this lease, the following words and phrases shall have the
following meanings:

          ADDITIONAL RENT: any amount described in paragraph 53, below.

          AUTHORIZED REPRESENTATIVE: any of officer, agent, employee or
independent contractor retained or employed by either party, acting within
authority given him by that party.

          ENCUMBRANCE: any deed of trust, mortgage or other written security
device or agreement affecting the Premises or the Project that constitutes
security for the payment of a debt or performance of an obligation, and the note
or obligation secured by such deed of trust, mortgage or other written security
device or agreement.

          LEASE MONTH: the period of time determined by reference to the day of
the month in which the term commences and continuing to one day short of the
same numbered day in the next succeeding month; e.g., the tenth day of one month
to and including the ninth day in the next succeeding month.

          LENDER: the beneficiary, mortgagee or other holder of an encumbrance,
as defined above.

          LIEN: a charge imposed an the Premises by someone other than Landlord,
by which the Premises are made security for the performance of an act. Most of
the liens referred to in this lease are mechanic's liens.

          MAINTENANCE: repairs, replacement, repainting and cleaning.

          MONTHLY RENT: the sum of the monthly payments of basic rent and common
area charges.

          PERSON: one or more human beings, or legal entities or other
artificial persons, including,
<PAGE>   26

without limitation, partnerships, corporations, trusts, estates, associations
and any combination of human being and legal entities.

           PROVISION: any term, agreement, covenant, condition, clause,
qualification, restriction, reservation or other stipulation in the lease that
defines or otherwise controls, establishes or limits the performance required or
permitted by either party.

           PUNCHLIST ITEMS: minor repairs to painting, carpets, walls and other
interior improvements as described in paragraph 9, above.

           RENT: basic rent, common area charges, additional rent, and all other
amounts payable by Tenant to Landlord required by this lease or arising by
subsequent actions of the parties made pursuant to this lease.

        Words used in any gender include other genders. If there be more than
one Tenant, the obligations of Tenant hereunder are joint and several. All
provisions whether covenants or conditions, on the part of Tenant shall be
deemed to be both covenants and conditions. The paragraph headings are for
convenience of reference only and shall have no effect upon the construction or
interpretation of any provision hereof

      42.  TIME

           Time is of the essence of this lease and of each and all of its
provisions.

      43.  EXAMINATION OF LEASE

           Submission of this lease for examination or signature by Tenant does
not constitute a reservation or option for a lease, and this lease is not
effective until its execution and delivery by both Landlord and Tenant.

      44.  INTEREST ON PAST DUE OBLIGATIONS; LATE CHARGE

           Any amount due from Tenant to Landlord hereunder which is not paid
within thirty (30) days of the date due shall bear interest at the rate of ten
percent (10%) per annum from when due until paid, unless otherwise specifically
provided herein, but the payment of such interest shall not excuse or cure any
default by Tenant under this lease. In addition, Tenant acknowledges that late
payment by Tenant to Landlord of basic rent or common area charges or of any
other amount due Landlord from Tenant, will cause Landlord to incur costs not
contemplated by this lease, the exact amount of such costs being extremely
difficult and impractical to fix. Such costs include, without limitation,
processing and accounting charges, and late charges that may be imposed on
Landlord, e.g., by the terms of any encumbrance and note secured by any
encumbrance covering the Premises. Therefore, if any such payment due from
Tenant is not received by Landlord within five (5) days of the date due (without
the requirement of providing Tenant notice), Tenant shall pay to Landlord an
additional sum of five percent (5%) of the overdue payment as a late charge. The
parties agree that this late charge represents a fair and reasonable estimate
of the costs that Landlord will incur by reason of late payment by Tenant.
Acceptance of any late charge shall not constitute a waiver of Tenant's default
with respect to the overdue amount, nor prevent Landlord from exercising any of
the other rights and remedies available to Landlord. No notice to Tenant of
failure to pay shall be required prior to the imposition of such interest and/or
late charge, and any notice period provided for in paragraph 20 shall not affect
the imposition of such interest and/or late charge.

     45.   ENTIRE AGREEMENT

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

     46.   CORPORATE AUTHORITY

           If Tenant is a corporation, each individual executing this lease on
behalf of the corporation represents and warrants that he is duly authorized to
execute and deliver this lease on behalf of the corporation in accordance with a
duly adopted resolution of the Board of Directors of said corporation and that
this lease is binding upon said corporation in accordance with its terms. If
Tenant is a corporation, Tenant shall deliver to Landlord, within ten (10) days
of the execution of this lease, a copy of the resolution of the Board of
Directors of Tenant authorizing the execution of this lease and naming the
officers that are authorized to execute this lease on behalf of Tenant, which
copy shall be certified by Tenant's president or secretary as correct and in
full force and effect.

<PAGE>   27

     47.   RECORDING

           Neither Landlord nor Tenant shall record this lease nor any short
form memorandum heretofore without the consent of the other.

     48.   REAL ESTATE BROKERS

           Each party represents that it has not had dealings with any real
estate broker finder or other person with respect to this lease in any manner.
Each party shall hold harmless the other party from all damages resulting from
any claims that may be asserted against the other party by any broker, finder or
other person with whom the other party has or purportedly has dealt.

     49.   EXHIBITS AND ATTACHMENTS

           All exhibits and attachments to this lease are a part hereof.

     50.   ENVIRONMENTAL MATTERS

            A.  Tenant's Covenants Regarding Hazardous Materials,

               (1) Without limiting Tenant's obligations under paragraph 7
hereof, Tenant shall comply with and shall cause the Project to comply with, all
federal, state, and local laws, statutes, rules, regulations, codes, ordinances,
and other governmental requirements (including, without limitation, permits,
licenses, consent decrees and administrative orders) now or hereafter in effect
relating or pertaining in any way to (i) human health, safety or protection,
(ii) workplace safety, (iii) industrial hygiene, (iv) the use, generation,
handling, maintenance, treatment, removal, transportation, storage, release,
discharge, disposal, or disclosure of Hazardous Materials, or (v) the protection
or regulation of the environment, all as amended and modified from time to time
(collectively, "Environmental Requirements"). Tenant shall cause all
governmental permits and other approvals relating to the use or operation of the
Project required by applicable Environmental Requirements or any other
applicable laws to all times remain in effect, and Tenant shall at all times
comply with such permits and other approvals.

               (2) Tenant shall not cause, or permit to occur, any release,
discharge, use, generation, manufacture, storage, treatment, transportation, or
disposal by Tenant or any of its employees, agents, contractors, visitors,
clients, customers, sublessees, assignees, successors, licensees or invitees, of
any Hazardous Materials on, in, under, about, or from the Premises or any other
part of the Project. However, notwithstanding the foregoing, Tenant may use on
the Premises, without Landlord's prior written consent, but only upon written
notice to Landlord and in compliance with all Environmental Requirements and
other applicable laws, any ordinary and customary materials reasonably required
for use by Tenant in the normal course of the permitted use described in
paragraph 1 hereof and further, but only so long as such use is not a Reportable
Use (defined below) and does not expose the Premises or any other part of the
Project or neighboring properties to any meaningful risk of contamination or
damage or expose Landlord to any liability whatsoever therefor. In addition,
Landlord may (but without any obligation to do so) condition its consent to any
Reportable Use of any Hazardous Materials by Tenant upon Tenant's giving
Landlord such additional assurances as Landlord in its sole discretion, deems
necessary to protect itself, the public, the Premises, the Project, and the
environment against damage, contamination or injury and/or liability therefor,
including but not limited to the installation (and, at Landlord's option,
removal on or before the expiration or earlier termination of this lease) of
reasonably necessary protective modifications to the Premises (such as concrete
encasement) and/or the deposit of an additional security deposit. As used
herein, "Reportable Use" shall mean (i) the installation or use of any above or
below ground storage tank, (ii) the release, generation, possession, storage,
use, transportation, discharge or disposal of any Hazardous Materials that
requires a permit from, or with respect to which a report, notice, registration
or business plan is required to be filed with, any governmental agency or
authority, and (iii) the presence in, on or about the Premises, the Project of
any Hazardous Materials with respect to which any Environmental Requirements or
other applicable laws require that a notice be given to persons entering or
occupying the Premises, the Project or neighboring properties.

               (3) If Tenant knows, or has reasonable cause to believe, that any
Hazardous Materials have come to be located in, on, under or about the Premises
or the Project (other than those Hazardous Materials that have come to be
located beneath and/or in the vicinity of the Project prior to the date of this
lease and other than those Hazardous Materials as previously consented to by
Landlord in writing, if any), to by Landlord, Tenant shall immediately give
Landlord written notice thereof, together with a copy of any statement, report,
notice, registration, application, permit, business plan, license, claim,
action, or proceeding, given to, or received from, any governmental authority or
private party concerning the presence, spill, release, discharge of, or exposure
to, such Hazardous Materials including but not limited to all such documents as
may be involved in any Reportable Use involving the Premises or the Project.
Landlord's receipt of any notice, documents or other information from Tenant as
provided above in this paragraph shall not create any obligation the part of
Landlord to respond in any way to such notice, documents or information or the
conditions described therein.

<PAGE>   28

               (4) Tenant shall immediately notify Landlord and provide copies
upon receipt of all written complaints, claims, citations, demands, inquiries,
reports, or notices relating to the condition of the Premises or compliance with
Environmental Requirements (provided, however, that Landlord's receipt of any of
the foregoing shall in no way create or impose any duty or obligation upon
Landlord to respond thereto. Tenant shall promptly cure and have dismissed with
prejudice any of those actions and proceedings to the satisfaction of Landlord.

               (5) Landlord, its agents, employees, contractors and designated
representatives, and the holders of any mortgages, deeds of trust or ground
leases an the Premises or Project shall have the right, but not the obligation,
to enter the Premises at any time in the case of an emergency, and otherwise at
reasonable times, for the purpose of inspecting the condition of the Premises
and for verifying compliance by Tenant with this lease (including compliance
with Environmental Requirements) and Landlord shall be entitled to employ
experts and/or consultants in connection therewith to advise Landlord with
respect to Tenant's activities, including but not limited to Tenant's use,
storage, handling, transportation, maintenance, or removal of any Hazardous
Materials on or from the Premises. The costs and expenses of any such
inspections shall be paid by the party requesting same, unless a default or
breach of this lease by Tenant or a violation of any Environmental Requirement
or a contamination caused or materially contributed to by the Tenant is found to
exist or to be imminent, or unless the inspection is requested or ordered by a
governmental agency or authority as the result of any such existing or imminent
violation or contamination, in such case, Tenant shall upon request reimburse
Landlord, for the costs and expenses of such inspections.

               (6) If Tenant breaches any of its warranties, representations, or
covenants under this paragraph 50, Landlord may, without obligation, cause the
removal (or other cleanup or other response acceptable to Landlord) of any
Hazardous Materials from the Project, and the costs of any Hazardous Materials
removal, remediation, detoxification, or other response (including, without
limitation, disposal, transportation and storage costs and all costs of
refitting or otherwise altering the Premises or any other part of the Project
shall be covered by the indemnity in paragraph 50B, below, whether or not a
court or other governmental authority has ordered such removal, remediation,
detoxification or other response and those costs shall become due and payable on
demand by Landlord. Tenant shall give Landlord, its agents, contractors, and
employees access to the Premises to remove, remediate, detoxify, clean up or
otherwise respond to any Hazardous Materials, and this lease shall not be
construed as creating any such obligation.

        B. Indemnification of Landlord. Tenant agrees to indemnify, defend (with
counsel acceptable to Landlord and at Tenant's sole cost), and hold Landlord and
Landlord's partners, employees, agents, attorneys, successors and assigns free
and harmless from and against any and all losses, liabilities, obligations,
penalties, claims, litigation, orders, demands, defenses, costs, judgments,
suits, penalties, proceedings, damages (including, without limitation,
consequential damages, diminution of the value of the Premises or Project,
disbursements, losses, or expenses of any kind (including, without limitation,
attorneys' and experts' fees and expenses incurred in investigating, defending,
or prosecuting any litigation, claim, or proceeding) that may at any time be
imposed upon, suffered by, incurred by, or asserted or awarded against Landlord
or any of its partners, employees, agents, attorneys, successors or assigns in
connection with or arising directly or indirectly out of:

        (1) Any release, threatened release, discharge, handling, use, storage,
presence, transportation, or disposal of any Hazardous Materials (whether or not
the use thereof is a Reportable Use or has been consented to by Landlord on, in,
under, or affecting all or any part of the Premises or Project which is (or are)
attributable, in whole or in part, directly or indirectly, to any act or
omission of Tenant or any employee, agent, contractor, visitor, client,
customer, sublessee, assignee, successor, licensee or invitee of Tenant;

        (2) Any misrepresentation, inaccuracy, or breach of any warranty,
covenant, or agreement contained or referred to in this paragraph 50;

        (3) Any failure by Tenant or any employee, agent, contractor, visitor,
customer, sublessee, assignee, successor, client, licensee or invitee of Tenant
to comply with any Environmental Requirement or other applicable law, whether
such failure was made knowingly or unknowingly or intentionally or
unintentionally.

This indemnification is the personal obligation of Tenant and shall survive the
expiration or sooner termination of this lease. Tenant, its successors, and
assigns waive, release, and agree not to make any claim or bring any cost
recovery action against Landlord under the Comprehensive Environmental Response,
Compensation and Liability Act, as amended and reauthorized to date (42 U.S.C.
Sections 9601 et seq.) ("CERCLA"), or any state equivalent or any similar law
now existing or enacted after this date. To the extent that Landlord is strictly
liable under any such law, regulation, ordinance, or requirement, Tenant's
obligation to Landlord under this indemnity shall also be without regard to
fault on the part of Tenant with respect to the violation or condition that
results in liability to Landlord.

        C. Definition of Hazardous Materials. "Hazardous Materials" means any
product substance, chemical, material or waste whose presence, nature, quantity
and/or intensity or existence, use, manufacture, disposal, transportation,
spill, release, or effect, either by itself or in combination with any other
materials, substances or chemicals is either (i) potentially injurious or
harmful to the

<PAGE>   29

public health, safety or welfare, the Premises, or the environment (including,
without limitation, any soil, air, groundwater, and subsurface media on, in,
under, above or about the Project); (ii) regulated or monitored by any federal,
state or local governmental authority; or (iii) a basis for potential liability
of Landlord to any governmental agency, private party, or other third party
under any Environmental Requirement or any other applicable statute, regulation,
code, ordinance or common law theory. Without limiting the scope or generality
of the foregoing, Hazardous Materials shall include, but not be limited to any
petroleum or petroleum byproducts or petroleum hydrocarbons, flammable
explosives, asbestos, urea formaldehyde, radioactive materials or waste and any
"hazardous substance" or "toxic waste" as those terms are defined under the
provision of the California Health and Safety Code and/or CERCLA.

        D. Survival. The provisions of this paragraph 50 shall survive the
expiration or earlier termination of the term of this lease.

        E. Limitation on Tenant Liability. Notwithstanding the provisions in
this lease to the contrary, Tenant shall have no obligation to clean up or to
reimburse, release, indemnify, or defend Landlord with respect to removal or
liability respecting Hazardous Materials unless the Hazardous Materials in
question were stored, used, generated, manufactured, treated, analyzed,
released, threaten to be released, discharged, disposed, transported or
otherwise caused to be present in, on or about the Premises or the Project by
Tenant or its agent's, employees, contractors, visitors, clients, customers,
sublessees, assignees, successors, licensees, invitees or others acting for or
on behalf of Tenant (whether or not they are negligent, intentional, willful or
unlawful).

     51.   SIGNAGE

        Tenant shall not, without obtaining the prior written consent of
Landlord, install or attach any sign or advertising material on any part of the
outside of the Premises, or on any part of the inside of the Premises which is
visible from the outside of the Premises, or in the halls, lobbies, windows or
elevators of the building in which the Premises are located or on or about any
other portion of the Common Area or Project. If Landlord consents to the
installation of any sign or other advertising material, the location, size,
design, color and other physical aspects thereof shall be subject to Landlord's
prior written approval and shall be in accordance with any sign program
applicable to the Project. In addition to any other requirements of this
paragraph 51, the installation of any sign or other advertising material by or
for Tenant must comply with all applicable laws, statutes, requirements, rules,
ordinances and any C.C.&R.'s or other similar requirements. With respect to any
permitted sign installed by or for Tenant, Tenant shall maintain such sign or
other advertising material in good condition and repair and shall remove such
sign or other advertising material on the expiration or earlier termination of
the term of this lease. The cost of any permitted sign or advertising material
and all costs associated with the installation, maintenance and removal thereof
shall be paid for solely by Tenant. If Tenant fails to properly maintain or
remove any permitted sign or other advertising material, Landlord may do so at
Tenant's expense. Any cost incurred by Landlord in connection with such
maintenance or removal shall be deemed additional rent and shall be paid by
Tenant to Landlord within ten (10) days following notice from Landlord. Landlord
may remove any unpermitted sign or advertising material without notice to Tenant
and the cost of such removal shall be additional rent and shall be paid by
Tenant within ten (10) days following notice from Landlord. Landlord shall not
be liable to Tenant for any damage, loss or expense resulting from Landlord's
removal of any sign or advertising material in accordance with this paragraph
51. The provisions of this paragraph 51 shall survive the expiration or earlier
termination of this lease.

     52.   SUBMISSION OF LEASE

           The submission of this lease to Tenant is not an offer to lease the
Premises, or an agreement by Landlord to reserve the Premises for Tenant.
Landlord will not be bound to Tenant until Tenant has duly executed and
delivered duplicate original leases to Landlord and Landlord has duly executed
and delivered one of those duplicate original leases to Tenant.

     53.   ADDITIONAL RENT

           All costs, charges, fees, penalties, interest and any other payments
(including Tenant's reimbursement to Landlord of costs incurred by Landlord)
which Tenant is required to make to Landlord pursuant to the terms and
conditions of this lease and any amendments to this lease shall be and
constitute additional rent payable by Tenant to Landlord when due as specified
in this lease and any amendments to this lease.

     54.   PREMISES TAKEN "AS IS"

           Tenant is leasing the Premises from Landlord "as is" in its existing
condition as of the date hereof. Landlord shall have no obligation to alter or
improve the Premises except only to paint the exterior of the building in which
the Premises are located. The cost of such exterior painting shall be deemed a
common area charge as provided in paragraph 16 and shall be amortized over the
remaining term of the lease.

<PAGE>   30

           Tenant acknowledges that, except as expressly contained in this
lease, neither Landlord nor anyone acting for or on behalf of Landlord has made
any representation, warranty or promise to Tenant concerning the physical
aspects or condition of any of the Project; the feasibility, desirability or
convertibility of any of the Project into any particular use; the zoning,
building or land use restrictions applicable to the zoning, building or land use
restrictions applicable to the Project; the projected income or expenses for any
of the Project or any business conducted thereon; the suitability of the Project
for any particular use; or the presence or absence of any Hazardous Materials;
and that in entering into this lease, Tenant has not relied upon any
representation, statement or warranty of Landlord or anyone acting for or on
behalf of Landlord, other than as expressly contained in this lease, and that
all matters concerning the Premises shall be independently verified by Tenant
and that Tenant shall enter into this lease on Tenant's own examination thereof
(or Tenant's election not to do so). Tenant does hereby waive, and Landlord does
hereby disclaim, all warranties of any type or kind whatsoever with respect to
the Project, express or implied, including by way of description, but not
limitation, those of fitness for a particular purpose, tenantability,
habitability and use. Tenant hereby expressly assumes the risk that adverse
physical conditions and the full extent thereof (including, without limitation,
soil, groundwater and surface water contamination and air pollution from
Hazardous Materials) may not be revealed by Tenant's inspections, reviews and
studies of the Project prior to the date of possession.

           No person acting on behalf of Landlord is authorized to make, and by
execution hereof Tenant acknowledges that no such person has made, any
representation, warranty, guaranty or promise except as may be expressly set
forth herein; and no agreement, statement, representation, guaranty or promise
made by any such person which is not expressly contained herein shall be valid
or binding on Landlord and Landlord's agents, heirs, successors or assigns. The
only representations or warranties outstanding with respect to the Project, or
Landlord, either express or implied by law, are expressly set forth herein.

           Tenant acknowledges that any and all documentary information, soil
reports, environmental audits, site assessments, analyses or reports, insurance
policies or other information of whatever type which Tenant has received or may
receive from Landlord or Landlord's agents is furnished on the express condition
that Tenant shall make Tenant's own independent verification of the accuracy and
completeness of such information. Tenant agrees that Tenant shall not attempt to
assert any liability upon Landlord or Landlord's agents for furnishing such
information and Tenant does hereby release Landlord and Landlord's agents,
heirs, successors and assigns free and harmless from and against, any and all
such claims or liability.

     55.   CAPITAL EXPENDITURES

           Notwithstanding anything to the contrary in paragraphs 7, 8 and 9,
(i) as to any required capital improvement to the Premises of a structural
nature (and including, when necessary in Landlord's sole judgment, replacement
of the roof and individual heating, ventilating and air-conditioning units but
excluding capital improvements required for ADA compliance except where such ADA
compliance is the responsibility of Landlord as described in the lease) having a
useful life of more than one year and which is not required by reason of
Tenant's specific use of or activities on the Premises, Landlord shall make such
capital improvement and Tenant shall pay to Landlord, as additional rent and in
equal monthly installments over the remaining term of this lease, the
fraction of the cost of such capital improvements equal to the remaining term of
this lease over the useful life of such capital improvement; (ii) as to any
required capital improvement to the common area having a useful life of more
than one year and which is not required by Tenant's specific use of or
activities on the Premises, the cost thereof shall be included within common
area charges ratably over the useful life of such capital improvement. Any
determination of useful life, as such term is used in this paragraph 55, shall
be reasonably made by Landlord.

        IN WITNESS WHEREOF, Landlord and Tenant have executed and delivered this
lease an the date first above written.

Landlord:                                      Tenant:

C & J Development Co., a                       Southwall Technologies, Inc.,
California Limited Partnership                 a Delaware corporation

By:/s/ SANDRA SIMONS                           By:  /s/ BILL R. FINLEY
   -------------------------------                ------------------------------
Sandra Simons, as Trustee under the                      (Signature)
Charles S. and Jean A. McCandless
Inter Vivos Trust Agreement dated                     Bill R. Finley
January 25, 1977, a General Partner            ---------------------------------
                                                         (Name)

                                                   Vice President and CFO
                                               ---------------------------------
                                                          (Title)

Date:  Oct 14, 1999                            Date: 13 October 1999
-------------------------------                ---------------------------------

<PAGE>   31

                                 [FLOOR CHART]

                                   EXHIBIT A<PAGE>   1

                                                                   EXHIBIT 10.25

                                      LEASE

                                 by and between

                            PARADIGM RESOURCES, L.C.

                        A UTAH LIMITED LIABILITY COMPANY

                                   as Landlord

                                       and

                                  PARTNET INC.,

                               A UTAH CORPORATION

                                    as Tenant

                                  FOR SUITE 204
                            OF A BUILDING LOCATED AT

                                615 ARAPEEN DRIVE
                              SALT LAKE CITY, UTAH

<PAGE>   2
               INDEX TO LEASE AGREEMENT: PARADIGM RESOURCES, L.C.
                              SALT LAKE CITY, UTAH

<TABLE>
<S>                                                                                <C>
ARTICLE 1. BASIC LEASE PROVISIONS; ENUMERATION OF EXHIBITS ................         1
      SECTION 1.01 BASIC LEASE PROVISIONS .................................         1
      SECTION 1.02 SIGNIFICANCE OF A BASIC LEASE PROVISION ................         3
      SECTION 1.03 ENUMERATION OF EXHIBITS ................................         3

ARTICLE II. GRANT AND PREMISES ............................................         3
      SECTION 2.01 PREMISES ...............................................         3

ARTICLE III. RENT .........................................................         3
      SECTION 3.01 BASE MONTHLY RENT ......................................         3
      SECTION 3.02 ESCALATION .............................................         3
      SECTION 3.03 TENANT'S SHARE OF LANDLORD'S EXPENSES ..................         4
      SECTION 3.04 REPORT OF COSTS AND STATEMENT OF ESTIMATED COSTS .......         4
      SECTION 3.05 PAYMENT OF ADDITIONAL RENT .............................         5
      SECTION 3.06 TAXES ..................................................         5
      SECTION 3.07 PAYMENTS ...............................................         5

ARTICLE IV. RENTAL TERM, COMMENCEMENT DATE & PRELIMINARY TERM .............         5
      SECTION 4.01 RENTAL TERM  ...........................................         5
      SECTION 4.02 RENTAL COMMENCEMENT DATE ...............................         5
      SECTION 4.03 PRELIMINARY TERM .......................................         6

ARTICLE V. CONSTRUCTION OF PREMISES .......................................         6
      SECTION 5.01 CONSTRUCTION BY LANDLORD ...............................         6
      SECTION 5.02 CHANGES AND ADDITIONS BY LANDLORD ......................         6
      SECTION 5.03 DELIVERY OF POSSESSION .................................         6

ARTICLE VI. TENANT'S WORK & LANDLORD'S CONTRIBUTION .......................         6
      SECTION 6.01 TENANT'S WORK ..........................................         6

ARTICLE VII. USE ..........................................................         7
      SECTION 7.01 USE OF PREMISES ........................................         7
      SECTION 7.02 HAZARDOUS SUBSTANCES ...................................         7

ARTICLE VIII. OPERATION AND MAINTENANCE OF COMMON AREAS ...................         7
      SECTION 8.01 CONSTRUCTION AND CONTROL OF COMMON AREAS ...............         7
      SECTION 8.02 LICENSE ................................................         8

ARTICLE IX. ALTERATIONS, SIGNS, LOCKS & KEYS ..............................         8
      SECTION 9.01 ALTERATIONS ............................................         8
      SECTION 9.02 SIGNS ..................................................         8
      SECTION 9.03 LOCKS AND KEYS .........................................         8

ARTICLE X. MAINTENANCE AND REPAIRS; ALTERATIONS; ACCESS ...................         9
      SECTION 10.01 LANDLORD'S OBLIGATION FOR MAINTENANCE .................         9
      SECTION 10.02 TENANT'S OBLIGATION FOR MAINTENANCE ...................         9
      SECTION 10.03 SURRENDER AND RIGHTS UPON TERMINATION .................         9

ARTICLE XI. INSURANCE AND INDEMNITY .......................................         9
      SECTION 11.01 LIABILITY INSURANCE AND INDEMNITY .....................         9
      SECTION 11.02 FIRE AND CASUALTY INSURANCE ...........................        10
      SECTION 11.03 WAIVER OF SUBROGATION .................................        10

ARTICLE XII. UTILITY CHARGES ..............................................        10
      SECTION 12.01 OBLIGATION OF LANDLORD ................................        10
      SECTION 12.02 OBLIGATIONS OF TENANT .................................        11
      SECTION 12.03 LIMITATIONS ON LANDLORDS LIABILITY ....................        11

ARTICLE XIII. OFF-SET STATEMENT, ATTORNMENT AND SUBORDINATION .............        12
      SECTION 13.01 OFF-SET STATEMENT .....................................        12
      SECTION 13.02 ATTORNMENT ............................................        12
      SECTION 13.03 SUBORDINATION .........................................        12
      SECTION 13.04 MORTGAGEE SUBORDINATION  ..............................        12
      SECTION 13.05 REMEDIES ..............................................        12

ARTICLE XIV. ASSIGNMENT ...................................................        12
</TABLE>

                                        i
<PAGE>   3

               INDEX TO LEASE AGREEMENT: PARADIGM RESOURCES, L.C.
                              SALT LAKE CITY, UTAH

<TABLE>
<S>                                                                                <C>
      SECTION 14.01 ASSIGNMENT ............................................        12

ARTICLE XV. WASTE OR NUISANCE .............................................        12
      SECTION 15.01 WASTE OR NUISANCE .....................................        12

ARTICLE XVI. NOTICES ......................................................        12
      SECTION 16.01 NOTICES ...............................................        12

ARTICLE XVII. DESTRUCTION OF THE PREMISES .................................        12
      SECTION 17.01 DESTRUCTION ...........................................        12

ARTICLE XVIII. CONDEMNATION ...............................................        13
      SECTION 18.01 CONDEMNATION ..........................................        13

ARTICLE XIX. DEFAULT OF TENANT.............................................        13
      SECTION 19.01 DEFAULT - RIGHT TO RE-ENTER ...........................        13
      SECTION 19.02 DEFAULT - RIGHT TO RE-LET .............................        14
      SECTION 19.03 LEGAL EXPENSES ........................................        14

ARTICLE XX. BANKRUPTCY, INSOLVENCY OR RECEIVERSHIP ........................        14
      SECTION 20.01 ACT OF INSOLVENCY, GUARDIANSHIP, ETC ..................        14

ARTICLE XXI. LANDLORD ACCESS ..............................................        14
      SECTION 21.01 LANDLORD ACCESS .......................................        14

ARTICLE XXII. LANDLORD'S LIEN .............................................        15
      SECTION 22.01 LANDLORD'S LIEN .......................................        15

ARTICLE XXIII. HOLDING OVER ...............................................        15
      SECTION 23.01 HOLDING OVER ..........................................        15
      SECTION 23.02 SUCCESSORS ............................................        15

ARTICLE XXIV. RULES AND REGULATIONS .......................................        15
      SECTION 24.01 RULES AND REGULATIONS .................................        15

ARTICLE XXV. QUIET ENJOYMENT ..............................................        15
      SECTION 25.01 QUIET ENJOYMENT .......................................        15

ARTICLE XXVI. SECURITY DEPOSIT ............................................        15
      SECTION 26.01 SECURITY DEPOSIT ......................................        15

ARTICLE XXV11. MISCELLANEOUS PROVISIONS ...................................        16
      SECTION 27.01 WAIVER ................................................        16
      SECTION 27.02 ENTIRE AGREEMENT ......................................        16
      SECTION 27.03 FORCE MAJEURE .........................................        16
      SECTION 27.04 LOSS AND DAMAGE .......................................        16
      SECTION 27.05 ACCORD AND SATISFACTION ...............................        16
      SECTION 27.06 NO OPTION .............................................        16
      SECTION 27.07 ANTI-DISCRIMINATION ...................................        16
      SECTION 27.08 SEVERABILITY ..........................................        16
      SECTION 27.09 OTHER MISCELLANEOUS PROVISIONS ........................        16
      SECTION 27.10 REPRESENTATION REGARDING AUTHORITY ....................        17

ADDITIONAL PROVISIONS .....................................................        17

SIGNATURES ................................................................        18

LANDLORD ACKNOWLEDGMENT ...................................................        18

TENANT ACKNOWLEDGMENT .....................................................        18
</TABLE>

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<PAGE>   4

                                 LEASE AGREEMENT

           ARTICLE 1. BASIC LEASE PROVISIONS; ENUMERATION OF EXHIBITS

        SECTION 1.01 BASIC LEASE PROVISIONS

(A)     DATE: JANUARY 12, 1999

(B)     LANDLORD: PARADIGM RESOURCES, L.C., a Utah limited liability company

(C)     ADDRESS OF LANDLORD FOR NOTICES (SECTION 16.01): 2733 East Parleys Way,
        Suite 300, Salt Lake City, UT 84109.

(D)     TENANT: PARTNET INC., a Utah corporation

(E)     ADDRESS OF TENANT FOR NOTICES (SECTION 16.01): 423 So. Wakara way, Salt
        Lake City, UT 84108. After opening for business at Leased Premises,
        notice address will be the Leased Premises.

(F)     PERMITTED USES (SECTION 7.01). Research, software programming, computer
        network services assembly and general office uses.

(G)     TENANT'S TRADE NAME (EXHIBIT "E" - SIGN CRITERIA): Partner Inc.

(H)     BUILDING (SECTION 2.01): Situated at approx. 615 Arapeen Drive, in the
        City of Salt Lake, County of Salt Lake, State of Utah.

(I)     PREMISES (SECTION 2.01): A portion of the first floor of the Building at
        the approximate location outlined on Exhibit "A-1" known as Suite 204
        consisting of approximately 6,026 square feet of gross rentable area.
        Said area is calculated by multiplying the full second floor usable area
        of 5,019 s.f. by 1.2007 to account for Tenant's proportionate share of
        common area corridors, lobby, mechanical, electrical, and other service
        rooms etc. in the Building.

(J)     DELIVERY OF POSSESSION (SECTION 5.03): On or before February 15, 1999,
        Preliminary Term begins on Delivery of Possession (Section 4.03).

(K)     RENTAL TERM, COMMENCEMENT AND EXPIRATION DATE (SECTIONS 4.01 & 4.02):
        The Rental Term shall commence on the earlier of (a) fifteen (15) days
        after Delivery of Possession or (b) opening of Tenant for business at
        the Premises, and shall be for a period of five (5) full Lease Years
        ending January 31, 2004, subject to Tenant right to terminate set forth
        in Section 1.01(X).

(L)     BASE MONTHLY RENT (SECTION 3.01):
        Eight Thousand Two Hundred Eighty Five and 75/100ths Dollars ($8,285.75)

(M)     ESCALATIONS IN BASE MONTHLY RENT (SECTION 3.02): The Base Monthly Rent
        shall be increased annually on the first day of each February commencing
        in the year 2000 ("Escalation Date") proportionate to any increase in
        the U.S. Dept. of Labor, Bureau of Labor Statistics Consumer Price Index
        for Urban Consumers, All City Average (1982-84=100). To calculate
        said increase, Landlord shall use a fraction the denominator of which
        shall be said index for the month of November, 1998 and the numerator of
        which shall be the index for the November immediately previous the
        Escalation Date. If there is a decrease in the relevant Consumer Price
        Index, the Base Monthly Rent shall not be adjusted. If the U.S.
        Department of Labor ceases to publish said Consumer Price Index, the
        Landlord shall substitute an index which in Landlord's reasonable good
        faith judgment most nearly approximates the Consumer Price Index
        specified herein.

(N)     LANDLORD'S SHARE OF OPERATING EXPENSES (SECTION 3.03): The Base Monthly
        Rent shall be absolutely net to the Landlord as provided in Section
        3.03.

(O)     TENANT'S PRO RATA SHARE OF OPERATING EXPENSES (SECTION 3.03): Tenant
        shall be responsible for all operating expenses as defined in Section
        3.03. Tenant's proportionate of Basic Costs shall be 6.715%. Said
        operating expenses include Basic Costs, Direct Costs and Metered Costs
        as defined in Section 3.03 and are currently estimated to be $4.50 per
        square foot or $2,259.75 monthly.

(P)     UTILITIES AND SERVICES. Subject to the provisions of Section 3.03, 12.01
        and 12.02, this Lease provides that the utilities and services shall be
        paid or reimbursed by Tenant

(Q)     LANDLORD'S CONTRIBUTION TO TENANT'S WORK (SECTION 6.02): Ninety Six
        Thousand Four Hundred Sixteen and no/100ths Dollars ($96,416.00)
        payable as set forth in Section 6.02 herein. If

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<PAGE>   5
        Tenant fails to spend all of Landlord's contribution then Landlord shall
        reduce the Base Monthly Rent as set forth in Section 1.01 (L) by $ 1.00
        for every $100.00 which Tenant does not spend.

(R)     PREPAID RENT: $8,034.67 paid upon execution of this Lease to be applied
        to the first installment(s) of Base Monthly Rent due hereunder.

(S)     EXCESS HOUR UTILITY CHARGES AND HOURS OF OPERATION (SECTION 12.02):
        Standard operating hours for the Building shall be 7:00 a.m. to 6:00
        p.m. Monday through Friday and 8:00 a.m. to 1:00 p.m. on Saturday,
        excluding holidays. To the extent Tenant operates during any time in
        excess of those specified above, Tenant shall pay an extra hourly
        utility charge of $0.20 per hour per 1,000 usable square feet for
        lighting and electricity and $3.00 per hour per 1,000 usable square feet
        for mechanical/HVAC system for each full or partial hour during which
        Tenant operates.

(T)     ADJUSTMENTS BASED ON FINAL AREA DETERMINATION: Upon final completion,
        the Building shall be measured and the actual rentable area of the
        Premises determined in accordance with standards of Section 2.01. The
        sums set forth in Sections 1.01 (L), (M), (O), (Q) and (U) shall then be
        proportionately adjusted to reflect the actual area of the Premises.

(U)     SECURITY DEPOSIT (SECTION 26.01): Eight Thousand Dollars ($8,000.00)

(V)     GUARANTOR(S): Don R. Brown

(W)     GUARANTOR'S ADDRESS: 423 So. Wakara Way, Salt Lake City, UT 84108

(X)     TENANT RIGHT TO TERMINATE: If Tenant needs additional space and Landlord
        can not provide sufficient space contiguous to Tenant's Leased Premises
        in the Building, then Tenant may elect to terminate this Lease effective
        on not less than ninety (90) days prior written notice given to Landlord
        and upon payment of the "unamortized portion" of the Landlord's
        Contribution to Tenant Work set forth in Section 1.01 (Q), which payment
        shall be made not less than five (5) days prior to the Termination Date.
        To calculate the "unamortized portion", Landlord shall multiply the
        amount of Landlord Contribution set forth in Section 1.01 (Q) as
        adjusted pursuant to Section 1.01 (T) by a fraction, the numerator of
        which shall be the number of months between the Termination Date as
        provided in this Section 1.01 (X) and January 31, 2004 and the
        denominator of which shall be 60.

                                       2
<PAGE>   6

        SECTION 1.02 SIGNIFICANCE OF A BASIC LEASE PROVISION. The foregoing
provisions of Section 1.01 summarize for convenience only certain fundamental
terms of the Lease delineated more fully in the Articles and Sections referenced
therein. In the event of a conflict between the provisions of Section 1.01 and
the balance of the Lease, the latter shall control.

        SECTION 1.03 ENUMERATION OF EXHIBITS. The exhibits enumerated in this
Section and attached to this Lease are incorporated in the Lease by this
reference and are to be construed as a part of the Lease.

                  EXHIBIT "A" - SITE PLAN
                  EXHIBIT "A-1" - FIRST LEVEL PLAN
                  EXHIBIT "B" - LEGAL DESCRIPTION(S)
                  EXHIBIT "C" - LANDLORD'S WORK
                  EXHIBIT "D" - TENANT'S WORK

                         ARTICLE II. GRANT AND PREMISES

        SECTION 2.01 PREMISES. Landlord has heretofore obtained a long-term
ground lease covering that certain tract of real property situated in the
University of Utah Research Park in Salt Lake City, State of Utah, more
particularly described in Exhibit "B" attached hereto, together with certain
easement for access rights. (Said tract is hereinafter referred to as the
"Property").

        Landlord owns a building on the Property referred to in Section 1.01 (H)
(hereinafter the "Building") suitable for use as office research and development
space, together with related parking facilities and other improvements necessary
to enable to the Building to be so used (the Building and related facilities and
improvements are hereinafter collectively referred to as the "Improvements").

        In consideration for the rent to be paid and covenants to be performed
by Tenant, Landlord hereby leases to Tenant, and Tenant leases from Landlord for
the Term and upon the terms and conditions herein set forth premises described
in Section 1.01(I) (hereinafter referred to as the "Premises" or "Leased
Premises"), located in the Building. Gross rentable area measurements herein
specified are from the exterior of the perimeter walls of the building to the
center of the interior walls. In addition, the factor set forth in Section 1.01
(1) has been added to the area as measured above to adjust for Tenant's
proportionate share of common hallways, restrooms, elevators, stairways, etc. in
the building.

        The exterior walls and roof of the Premises and the areas beneath said
Premises are not demised hereunder, and the use thereof together with the right
to install, maintain, use, repair, and replace pipes, ducts, conduits, and wires
leading through the Premises in locations which will not materially interfere
with Tenant's use thereof and serving other parts of the building or buildings
are hereby reserved to Landlord. Landlord reserves (a) such access rights
through the Premises as may be reasonably necessary to enable access by Landlord
subject to reasonable notice to Tenant to the balance of the building and
reserved areas and elements as set forth above; and (b) the right to install or
maintain meters on the Premises to monitor use of utilities. In exercising such
rights, Landlord will use reasonable efforts so as to not commit waste upon the
Premises and as far as practicable to minimize annoyance, interference or damage
to Tenant when making modifications, additions or repairs.

        Subject to the provisions of Article VIII, Tenant and its customers,
agents and invitees have the right to the non-exclusive use, in common with
others of such unreserved automobile parking spaces, driveways, footways, and
other facilities designated for common use within the Building, except that with
respect to non-exclusive automobile parking spaces, Tenant shall cause its
employees to park their cars only in areas specifically designated from time to
time by Landlord for that purpose. Landlord shall have the right to designate,
in its sole business judgment, certain spaces as "customer" parking spaces and
Tenant shall use its best efforts to cause its employees not to park in said
customer parking.

                                ARTICLE III. RENT

        SECTION 3.01 BASE MONTHLY RENT. Tenant agrees to pay to Landlord the
Base Monthly Rent set forth in Section 1.01(L), as adjusted pursuant to Section
1.01(T), at such place as Landlord may designate, without prior demand
therefor, without offset or deduction and in advance on or before the first day
of each calendar month during the Rental Term, commencing on the Rental
Commencement Date. In the event the Rental Commencement Date occurs on a day
other than the first day of a calendar month, then the Base Monthly Rent to be
paid on the Rental Commencement Date shall include both the Base Monthly Rent
for the first full calendar month occurring after the Rental Commencement Date,
plus the Base Monthly Rent for the initial fractional calendar month prorated on
a per-diem basis (based upon a thirty (30) day month).

        SECTION 3.02 ESCALATION. As set forth in Section 1.01(M).

                                       3
<PAGE>   7

SECTION 3.03 TENANT'S SHARE OF LANDLORD'S EXPENSES.

        (a) "Basic Costs" shall mean all reasonable actual costs and expense
incurred by Landlord in connection with the ownership, operation, management and
maintenance of the Property Improvements located thereon including, but not
limited to, all reasonable expenses incurred by Landlord as a result of
Landlord's compliance with any and all of its obligations under this Lease (or
under similar leases with other tenants). In explanation of the foregoing, and
not in limitation thereof, Basic Costs shall include: all real and personal
property taxes and assessments (whether general or special, known or unknown,
foreseen or unforeseen) and any tax or assessment levied or charged in lieu
thereof, whether assessed against Landlord and/or Tenant and whether collected
from Landlord and/or Tenant; snow removal, trash removal, common area utilities,
cost of equipment or devices used to conserve or monitor energy consumption,
supplies, insurance, license, permit and inspection fees, cost of services of
independent contractors, cost or compensation (including employment taxes and
reasonable fringe benefits) of all persons who perform regular and recurring
duties connected with day-to-day operation, maintenance, repair, and replacement
of the Building, its equipment and the adjacent walk, and landscaped area
(including, but not limited to janitorial, scavenger, gardening, security,
parking, elevator, painting, plumbing, electrical, mechanical, carpentry, window
washing, structural and roof repairs and reserves, signing and advertising), but
excluding persons performing services not uniformly available to or performed
for substantially all Building tenants; and rental expense or a reasonable
allowance FOR depreciation of personal property used in the maintenance,
operation and repair of the Building. The foregoing notwithstanding, Basic Costs
shall not include depreciation on the Building and Improvements; amounts paid
toward principal or interest of loans of Landlord; nor "Direct Costs" as defined
in Section 3.03 (b). If the cost of any repair or replacement exceeds $5,000.00
and is of the nature normally defined as a "capital cost" under generally
accepted accounting principles, then such cost shall be amortized together with
interest at 10% per annum and charged as a "Basic Cost" over the useful life of
said repair or replacement. Tenant shall pay its Proportionate Share of Basic
Costs. "Tenant's Proportionate Share of Basic Costs" shall mean the percentage
derived from a fraction, the numerator of which is the gross rentable area of
the Premises as set forth in Section 1.01(I) and the denominator of which is
the gross rentable square footage of the Building (89,741 s.f.). Tenant's
Proportionate Share of Basic Costs initially is set forth in Section 1.01(O),
subject to increase or decrease due to increases or decreases in the gross
rentable square footage of the Premises and/or the Building.

        (b) "Direct Costs" shall mean all actual costs and expenses incurred by
Landlord in connection with the operation, management, maintenance, replacement,
and repair of the Premises, including but not limited to janitorial services,
maintenance, repairs, supplies, utilities, heating, ventilation, air
conditioning, and property management fees, (which property management fees
shall not exceed four (4%) percent of the Base Monthly Rent set forth herein).
If any category of Direct Costs can only be determined on a Building wide basis,
Tenant's proportionate share of any such category of Direct Costs will be based
on the same percentage established for Tenant's Proportionate Share of Basic
Costs.

        (c) Landlord may cause at Landlord's sole cost and expense (which shall
not be reimbursable in whole or in part by Tenant) meters or monitors to be
installed to measure actual electrical and ventilation/air conditioning usage in
the Premises by Tenant. "Metered Costs" shall mean the actual cost of such
usage. If such meters are installed, Tenant shall pay Landlord monthly, as
Additional Rent, the estimated costs of such metered electrical and
ventilation/air conditioning usage. If the costs of ventilation/air conditioning
usage are not separately metered for tenants in the Building said costs shall be
considered Direct Costs and shall be calculated as set forth in 3.03(a).

        (d) "Estimated Costs" shall mean the projected amount of Direct Costs,
Metered Costs and Proportionate Share of Basic Costs. The Estimated Costs for
the calendar year in which the Lease commences are set forth in Section 1.01(O),
and are not included in the Base Monthly Rent. If the Estimated Costs as of the
date Tenant takes occupancy are greater than the Estimated Costs at the time
this Lease is executed, the Estimated Costs shall be increased to equal the
Estimated Costs as of the date of Tenant's occupancy.

SECTION 3.04 REPORT OF COSTS AND STATEMENT OF ESTIMATED COSTS.

        (a) Within sixty (60) days after the expiration of each calendar year
occurring during the term of this Lease, Landlord shall furnish Tenant a written
statement ("Annual Report of Costs") of the Tenant's actual Direct Costs,
Metered Costs and Proportionate Share of Basic Costs occurring during the
previous calendar year. Such Annual Report of Costs shall show in reasonable
detail a breakdown of the components of the Costs set forth herein. The Annual
Report of Costs shall specify the amount by which said actual costs for the
previous year exceeds or is less than the amounts paid by Tenant as Estimated
Costs during the previous calendar year.

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<PAGE>   8

                (b) At the same time specified in Section 3.04 (a), Landlord
        shall furnish Tenant a written statement of the Estimated Costs for the
        then current calendar year ("Annual Statement of Estimated Costs.")

                (c) Landlord's records of costs shall be open to inspection by
        Tenant at Landlord's office during business hours and upon five (5) days
        prior written notice to Landlord of Tenant's desire to conduct such
        inspection. If Tenant discovers any errors in Landlord's calculations as
        a result of such inspections, Landlord shall immediately adjust such
        costs and credit or charge Tenant for its share of the discrepancy.

        SECTION 3.05 PAYMENT OF ADDITIONAL RENT. Tenant shall pay additional
rent ("Additional Rent") as follows:

                (a) With each monthly payment of Base Monthly Rent pursuant to
        Section 3.01 above, Tenant shall pay TO Landlord, without offset or
        deduction, one-twelfth (1/12th) of the Annual Statement of Estimated
        Costs. If at any time Landlord obtains information that indicates that
        any of the categories of cost comprising Estimated Costs are
        significantly different than as calculated in the Annual Statement of
        Estimated Costs then in effect, Landlord may amend said Statement in
        order to reflect a more accurate prediction of the actual costs that
        will be incurred during the calendar year, and Tenant will pay amended
        Additional Rent consistent with said amended Statement.

                (b) Within thirty (30) days after delivery of the Annual Report
        of Costs, Tenant shall pay to Landlord the amount by which Direct Costs,
        Metered Costs and Proportionate Share of Basic Costs, as specified in
        the Report, exceed the aggregate of Estimated Costs actually paid by
        Tenant as Additional Rent for the year at issue.

                (c) If the Annual Report of Costs indicates that the Estimated
        Costs paid by Tenant exceeded the actual Direct Costs, Metered Costs and
        Proportionate Share of Basic Costs for the same year, Landlord, at its
        sole election, shall either (i) pay the amount of such excess to Tenant,
        or (ii) apply such excess against the next installments) of Base Monthly
        Rent and/or Additional Rent due hereunder and so notify Tenant.

        SECTION 3.06 TAXES.

                (a) Landlord shall pay all real property taxes and assessments
        (all of which are hereinafter collectively referred to as "Taxes') which
        are levied against or which apply with respect to the Premises to be
        reimbursed by Tenant as a part of Basic Costs.

                (b) Tenant shall prior to delinquency pay all taxes,
        assessments, charges, and fees which during the Rental Term hereof may
        be imposed, assessed, or levied by any governmental or public authority
        against or upon Tenant's use of the Premises or any inventory, personal
        property, fixtures or equipment kept or installed, or permitted to be
        located therein by Tenant.

        SECTION 3.07 PAYMENTS. All payments of Base Monthly Rent, Additional
Rent and other payments to be made to Landlord shall be made on a timely basis
and shall be payable to Landlord or as Landlord may otherwise designate. All
such payments shall be mailed or delivered to Landlord's principal office set
forth in Section 1.01 (C), or at such other place as Landlord may designate from
time to time in writing. If mailed, all payments shall be mailed in sufficient
time and with adequate postage thereon to be received in Landlord's account by
no later than the due date for such payment. If Tenant shall fail to pay any
Base Monthly Rent or any Additional Rent or any other amounts or charges within
five (5) days after the due date, Tenant shall pay interest from the due date of
such past due amounts to the date of payment, both before and after judgment at
a rate equal to the greater of fourteen (14%) percent per annum or two (2%)
percent over the "prime" or "base" rate charged by Zions First National Bank of
Utah at the due date of such payment; provided however, that in any case the
maximum amount or rate of interest to be charged shall not exceed the maximum
non-usurious rate in accordance with applicable law. Notwithstanding the above,
Landlord shall waive said interest for one late payment in any calendar year
provided that Tenant pays the past due charge within five (5) days after notice
from Landlord that the charge is past due.

          ARTICLE IV. RENTAL TERM, COMMENCEMENT DATE & PRELIMINARY TERM

        SECTION 4.01 RENTAL TERM. The initial term of this Lease shall be for
the period defined as the Rental Term in Section 1.01(K), plus the partial
calendar month, if any, occurring after the Rental Commencement Date (as
hereinafter defined) if the Rental Commencement Date occurs other than on the
first day of a calendar month. "Lease Year" shall include twelve (12) calendar
months, except that first Lease Year will also include any partial calendar
month beginning on the Rental Commencement Date.

        SECTION 4.02 RENTAL COMMENCEMENT DATE. The Rental Term of this Lease and
Tenant's obligation to pay rent hereunder shall commence as set forth in Section
1.01K (the "Rental Commencement Date"). Within five (5) days after Landlord's
request to do so, Landlord and Tenant shall execute a written

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<PAGE>   9

affidavit, in recordable form, expressing the Rental Commencement Date and the
termination date, which affidavit shall be deemed to be part of this Lease.

        SECTION 4.03 PRELIMINARY TERM. The period between the date Tenant enters
upon the Premises and the commencement of the Rental Term will be designated as
the "preliminary term" during which neither Base Monthly Rent nor Additional
Rent shall accrue; however, other covenants and obligations of Tenant shall be
in full force and effect. Delivery of possession of the Premises to Tenant AS
provided in Section 5.03 shall be considered "entry" by Tenant and commencement
of "preliminary term".

                       ARTICLE V. CONSTRUCTION OF PREMISES

        SECTION 5.01 CONSTRUCTION BY LANDLORD. Landlord will construct the
Building in which the Premises are to be located. The Premises shall be
constructed substantially in accordance with Outline Specifications entitled
"Landlord's Work" marked Exhibit "C" attached hereto and made a part hereof. it
is understood and agreed by Tenant that no minor changes which do not impair
Tenant's efficient business use of the Leased Premises from any plans or from
said Outline Specifications made necessary during construction of the Premises
or the Building shall affect or change this Lease or invalidate same.

        SECTION 5.02 CHANGES AND ADDITIONS BY LANDLORD. Landlord hereby reserves
the right at any time, and from time to time, to make alterations or additions
TO, and to build additional stories on the Building in which the Premises are
contained and to build adjoining the same and to modify the existing parking or
other common areas to accommodate additional buildings. Landlord also reserves
the right to construct other buildings or improvements in the Building area from
time to time, on condition that if the Building area is expanded so as to
include any additional buildings, Landlord agrees to create or maintain a
parking ratio adequate to meet local laws and ordinances, including the right to
add land to the Building or to erect parking structures thereon. Notwithstanding
the above, the addition of new improvements shall not, after constructed,
materially interfere with Tenant's access to or from or use of the Leased
Premises. Furthermore, during construction, Landlord shall undertake prudent
reasonable steps to minimize interference with Tenant's access to or from the
Leased Premises.

        SECTION 5.03 DELIVERY OF POSSESSION. Except as hereinafter provided,
Landlord shall deliver the Premises to Tenant ready for Tenant's Work on or
before the date set forth in Section 1.01(j). The Premises shall be deemed as
ready for delivery when Landlord shall have substantially completed construction
of the portion of the said Premises to be occupied exclusively by Tenant, in
accordance with Landlord's obligations set forth in Exhibit "C". Landlord shall,
from time to time during the course of construction, provide information to
Tenant concerning the progress of construction of said Premises, and will give
written notice to Tenant when said Premises are in fact ready for Tenant's Work.
Notwithstanding the foregoing, Landlord shall have the right to extend the date
for delivery of possession of the Premises for a period of three one (1) month
periods by notice in writing given to Tenant any time prior to said delivery
date. If any disputes shall arise as to the Premises being ready for delivery of
possession, a certificate furnished by Landlord's architect in charge so
certifying shall be conclusive and binding of that fact and date upon the
parties. It is agreed that by occupying the Premises as a tenant, Tenant
formally accepts the same and acknowledges that the Premises are in the
condition called for hereunder, except for items specifically excepted in
writing at date of occupancy as "incomplete".

               ARTICLE VI. TENANT'S WORK & LANDLORD'S CONTRIBUTION

        SECTION 6.01 TENANT'S WORK. Tenant agrees to provide all work of
whatsoever nature in accordance with its obligations set forth in Exhibit "D".
Tenant agrees to furnish Landlord, within the time periods required in Exhibit
"D", with a complete and detailed set of plans and specifications drawn by some
qualified person reasonably acceptable to Landlord setting forth and describing
Tenant's Work in such detail as Landlord may reasonably require and in
compliance with Exhibit "D", unless this requirement be waived in writing by
Landlord. If said plans and specifications are not so furnished by Tenant within
the required time periods, then Landlord may, at its option, in addition to
other remedies Landlord may enjoy, cancel this Lease at any time thereafter
while such plans and specifications have not been so furnished. No material
deviation from the final set of plans and specifications once submitted to and
approved by Landlord, shall be made by Tenant without Landlord's prior written.
consent, which shall not be unreasonably withheld. Landlord shall have the right
to approve Tenant's architect and contractor to be used in performing Tenant's
Work, and the right to require and approve insurance or bonds provided by Tenant
or such contractors. in due course after completion of Tenant's Work, Tenant
shall certify to Landlord the itemized cost of Tenant improvements and fixtures
located upon the Premises.

        SECTION 6.02 LANDLORD CONTRIBUTION TO TENANT'S WORK. In addition to
Landlord Work to be completed pursuant to Exhibit "C", Landlord shall contribute
the amount set forth in Section 1.01 (Q) toward Tenant's Work set forth in
Exhibit "D". If Tenant does not spend all of the Contribution to Tenant's Work,
then Landlord shall reduce the Base Monthly Rent as set forth in Section 1.01
(L) by $1.00 for each $100.00 of Landlord Contribution which Tenant does not
spend.

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                                ARTICLE VII. USE

        SECTION 7.01 USE OF PREMISES. Tenant shall use the Premises solely for
the purpose of conducting the business indicated in Section 1.01(F) and for
purposes ordinarily incidental to such use and only for such purposes and in
such manner as are permitted both by the Protective Covenants relating to the
University of Utah Research Park and by any existing legislation concerning the
Research Park. Tenant shall not make any use of the Premises which might cause
cancellation or an increase in the cost of any insurance policy covering the
same unless Tenant commits to pay the amount of increase in said insurance
premium in addition to other payments set forth in this Lease. Tenant shall not
make any use of the Leased Premises any article, item, or thing which is
prohibited by the standard form of fire insurance policy. Tenant shall not
commit any waste upon the Leased Premises and shall not conduct or allow any
business activity, or thing on the Leased Premises which is an annoyance or
causes damage to Landlord, to other sub-tenants, occupants, or users of the
Improvements, or to occupants of the vicinity. Tenant shall comply with and
abide by all laws, ordinances, and regulations of all municipal, county, state,
and federal authorities which are now in force or which may hereafter become
effective with respect to use and occupancy of the Premises. Landlord represents
that to the best of its knowledge and understanding, that upon delivery of
possession as set forth in Section 5.03, the Building will comply with all
currently applicable laws, ordinances and regulations of municipal, county,
state and federal authorities.

        SECTION 7.02 HAZARDOUS SUBSTANCES.

                (a) Landlord shall be responsible for removal of any Hazardous
        Substances that existed at the Project prior to construction or any that
        Landlord has or does install at the Premises OR Building. After
        reasonable inquiry, Landlord is not aware of any existing Hazardous
        Substances within the Project areas.

                (b) Tenant shall not use, produce, store, release, dispose or
        handle in or about the Leased Premises or transfer to or from the Leased
        Premises (or permit any other party to do such acts) any Hazardous
        Substance except in compliance with all applicable Environmental Laws.
        Tenant shall not construct or use any improvements, fixtures or
        equipment or engage in any act on or about the Leased Premises that
        would require the procurement of any license or permit pursuant to any
        Environmental Law. Upon Tenant obtaining actual knowledge of same,
        Tenant shall immediately notify Landlord of (i) the existence of any
        Hazardous Substance on or about the Leased Premises that may be in
        violation of any Environmental Law (regardless of whether Tenant is
        responsible for the existence of such Hazardous Substance), (ii) any
        proceeding or investigation by any governmental authority regarding the
        presence of any Hazardous Substance on the Leased Premises or the
        migration thereof to or from any other property, (iii) all claims made
        or threatened by any third party against Tenant relating to any loss or
        injury resulting from any Hazardous Substance, or (iv) Tenant's
        notification of the National Response Center of any release of a
        reportable quantity of a Hazardous Substance in or about the Leased
        Premises. "Environmental Laws" shall mean any federal, state or local
        statute, ordinance, rule, regulation or guideline pertaining to health,
        industrial hygiene, or the environment, including without limitation,
        the federal Comprehensive Environmental Response, Compensation, and
        Liability Act; "Hazardous Substance" shall mean all substances,
        materials and wastes that are or become regulated, or classified as
        hazardous or toxic, under any Environmental Law. If it is determined
        that any Hazardous Substance exists on the Leased Premises resulting
        from any act of Tenant or its employees, agents, contractors, licensees,
        subtenants or customers, then Tenant shall immediately take necessary
        action to cause the removal of said substance and shall remove such
        within ten (10) days after discovery. Notwithstanding the above, if the
        Hazardous Substance is of a nature that can not be reasonably removed
        within ten (10) days Tenant shall not be in default if Tenant has
        commenced to cause such removal and proceeds diligently thereafter to
        complete removal, except that in all cases, any Hazardous Substance must
        be removed within sixty (60) days after discovery thereof. Furthermore,
        notwithstanding the above, if in the good faith judgment of Landlord,
        the existence of such Hazardous Substance creates an emergency or is of
        a nature which may result in immediate physical danger to persons AT the
        Property, Landlord may enter upon the Leased Premises and remove such
        Hazardous Substances and, if the existence was a result of the act of
        the Tenant or its employee, agent, contractor, licensee, subtenant, or
        customers, Landlord may charge the cost thereof to Tenant as Additional
        Rent.

             ARTICLE VIII. OPERATION AND MAINTENANCE OF COMMON AREAS

        SECTION 8.01 CONSTRUCTION AND CONTROL OF COMMON AREAS. All automobile
parking areas, driveways, entrances and exits thereto, and other facilities
furnished by Landlord in or near the buildings or Building, including if any,
employee parking areas, truck ways, loading docks, mail rooms or mail pickup
areas, pedestrian sidewalks and hallways, landscaped areas, retaining walls,
stairways, elevators, utility rooms, restrooms and other areas and improvements
provided by Landlord for the general use in common tenants, their officers,
agents, employees and customers, shall at all times be subject to the exclusive
control and management of Landlord which shall have the right from time to time
to establish,

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<PAGE>   11

reasonable non-discriminatory Rules and Regulations with respect to all
facilities and modify and enforce areas mentioned in this Section. Landlord
shall have the right to construct, maintain and operate lighting and drainage
facilities on or in all said areas and improvements; to police the same, from
time to time to change the area, level, location and arrangement of parking
areas and other facilities hereinabove referred to; to restrict parking by
tenants, their officers, agents and employees to employee parking areas; to
close temporarily all or any portion of said areas or facilities to such extent
as may, in the opinion of counsel, be legally sufficient to prevent a dedication
thereof or the accrual of any rights to any person or the public therein; to
assign "reserved" parking spaces for exclusive use of certain tenants or for
customer parking, to discourage non-employee and non-customer parking; and to do
and perform such other acts in and to said areas and improvements as, in the
exercise of good business judgment, the Landlord shall determine to be advisable
with a view toward maintaining of appropriate convenience uses, amenities, and
for permitted uses by tenants, their officers, agents, employees and customers.
Landlord will operate and maintain the common facilities referred to above in
such a manner as it, in its sole discretion, shall determine from time to time
but in any event, Landlord shall maintain the common facilities in a clean,
sanitary and safe condition in accordance with applicable laws, rules and
regulations. Landlord shall take reasonable measures to minimize to the extent
reasonably possible interference with Tenant's business while performing
Landlord's common area maintenance responsibilities, but Landlord shall not be
liable for any interference resulting from Landlord's prudent performance of
said responsibilities. Without limiting the scope of such discretion, Landlord
shall have the full right and authority to employ all personnel and to make all
Rules and Regulations pertaining to and necessary for the proper operation,
security and maintenance of the common areas and facilities. Building and/or
project signs, traffic control signs and other signs determined by Landlord to
be in best interest of the Building, will be considered part of common area and
common facilities.

        SECTION 8.02 LICENSE. All common areas and facilities not within the
Premises, which Tenant may be permitted to use and occupy, are to be used and
occupied under a revocable license, and if the amount of such areas be
diminished, Landlord shall not be subject to any liabilities nor shall Tenant be
entitled to any compensation or diminution or abatement of rent, nor shall such
diminution of such areas be deemed constructive or actual eviction, so long as
such revocations or diminutions are deemed by Landlord to serve the best
interests OF the Building. Notwithstanding the above, Landlord shall not
permanently materially alter Tenant's access to or from the Leased Premises.

                  ARTICLE IX. ALTERATIONS, SIGNS, LOCKS & KEYS

        SECTION 9.01 ALTERATIONS. Tenant shall not make or suffer to be made any
alterations or additions to the Premises in excess of $5,000 or which may affect
the building structure or building HVAC, electrical or plumbing systems without
the prior written consent of Landlord. Any additions to, or alterations of the
Premises except movable furniture, equipment and trade fixtures shall become a
part of the realty and belong to Landlord upon the termination of Tenant's lease
or renewal term or other termination or surrender of the Premises to Landlord.

        SECTION 9.02 SIGNS. Subject to the restrictions of the University
Research Park and obtaining written prior approval of University Research Park
and of Landlord and any required municipal or other public approvals and subject
to full conformity with Exhibit "E" Tenant at its own expense, may place a
suitable Tenant identification sign on the Building and/or Premises, provided
that any such sign shall be in the same general Building location and the
general design conforms to the same design and style of other tenant signs on
the Building. If any sign is erected prior to obtaining written University
Research Park and Landlord approval Tenant shall be required to remove said sign
and repair any damage caused thereby at its sole cost and expense. At the
termination of this Lease, Tenant shall remove said signs. Tenant shall repair
any damage caused by the installation or removal of any Tenant signs. All work
shall be completed in a good and workmanlike manner

        SECTION 9.03 LOCKS AND KEYS.

                (a) The building shall be equipped with an electronic card
        access system at entrance to building as well as primary doors of the
        Leased Premises. Landlord shall issue, monitor, and program key cards
        for Tenant and Tenant's employees, as reasonably needed. Tenant shall
        pay the Landlord's cost for program key cards requested by Tenant. When
        employment relationships change, Tenant shall cooperate to attempt to
        retrieve said key cards from employees leaving Tenant.

                (b) Where key access exists, Tenant may change locks or install
        other locks on doors, but if Tenant does, Tenant must provide Landlord
        with duplicate keys within twenty four hours after said change or
        installation.

                (c) Upon termination of this Lease Tenant shall deliver to
        Landlord all cards and keys to the Premises including any interior
        offices, toilet rooms, combinations to built-in safes, etc. which shall
        have been furnished to or by the Tenant or are in the possession of the
        Tenant.

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<PAGE>   12
             ARTICLE X. MAINTENANCE AND REPAIRS; ALTERATIONS; ACCESS

        SECTION 10.01 LANDLORD'S OBLIGATION FOR MAINTENANCE. Landlord shall
maintain and repair: (1) the areas outside the Premises including hallways,
stairways, elevators, public restrooms, if any, general landscaping, parking
areas, driveways and walkways; (2) the Building structure including roof,
exterior walls, and foundation; and (3) all plumbing, electrical, heating, and
air conditioning systems. However, if the need for such repairs or maintenance
results from any careless, wrongful or negligent act or omission of Tenant,
Tenant shall pay the entire cost of any such repair or maintenance including a
reasonable charge to cover Landlord's supervisory overhead. Except in case of
emergency repairs of which Landlord becomes aware of, Landlord shall not be
obligated to repair any damage or defect until receipt of written notice from
Tenant of the need of such repair and Landlord shall have a reasonable time
after receipt of such notice in which to make such repairs. Tenant shall give
immediate notice to Landlord in case of fire or accidents in the Premises or in
the building of which the Premises are a part or of defects therein or in any
fixtures or equipment provided by Landlord. If Landlord does not repair such
items within a reasonable time, Tenant may do so on behalf of Landlord and bill
the cost thereof to Landlord who shall pay such within twenty (20) days after
receipt thereof unless Landlord notifies Tenant in writing that Landlord
disputes the repair or cost thereof.

        SECTION 10.02 TENANT'S OBLIGATION FOR MAINTENANCE.

                (a) Tenant shall provide its own janitorial service and keep and
        maintain the Premises including the interior wall surfaces and windows,
        floors, floor coverings and ceilings in a clean, sanitary and safe
        condition in accordance with the laws of the State and in accordance
        with all directions, rules and regulations of the health officer, fire
        marshall, building inspector, or other proper officials of the
        governmental agencies having jurisdiction, at the sole cost and expense
        of Tenant, and Tenant shall comply with all requirements of law,
        ordinance and otherwise, affecting said Premises.

                (b) Tenant shall pay, when due, all claims for labor or material
        furnished, for work under Sections 9.01, 9.02 and 10.02 hereof, to or
        for Tenant at or for use in the Premises, and shall bond such work if
        reasonably required by Landlord to prevent assertion of claims against
        Landlord.

                (c) Tenant agrees to be responsible for all furnishings,
        fixtures and equipment located upon the Premises from time to time and
        shall replace carpeting within the Premises if same shall be damaged by
        tearing, burning, or stains resulting from spilling anything on said
        carpet, reasonable wear and teat accepted.

        SECTION 10.03 SURRENDER AND RIGHTS UPON TERMINATION.

                (a) This Lease and the tenancy hereby created shall cease and
        terminate at the end of the Rental Term hereof, or any extension or
        renewal thereof, without the necessity of any notice from either
        Landlord or Tenant to terminate the same, and Tenant hereby waives
        notice to vacate the Premises and agrees that Landlord shall be entitled
        to the benefit of all provisions of law respecting summary recovery of
        possession of Premises from a Tenant holding over to the same extent as
        if statutory notice has been given.

                (b) Upon termination of this Lease at any time and for any
        reason whatsoever, Tenant shall surrender and deliver up the Premises to
        Landlord in the same condition as when the Premises were delivered to
        Tenant or as altered as provided in Section 9.01, ordinary wear and tear
        excepted. Upon request of Landlord, Tenant shall promptly remove all
        personal property from the Premises and repair any damage caused by such
        removal. Obligations under this Lease relating to events occurring or
        circumstances existing prior to the date of termination shall survive
        the expiration or other termination of the Rental Term of this Lease.

                      ARTICLE XI. INSURANCE AND INDEMNITY

        SECTION 11.01 LIABILITY INSURANCE AND INDEMNITY. Tenant shall, during
all terms hereof, keep in full force and effect a policy of public bodily injury
and property damage liability insurance with respect to the Premises, with a
combined single limit of not less than Two Million Dollars ($2,000,000.00) per
occurrence. The policy shall name Landlord, Property Manager (i.e., Woodbury
Corporation) and any other persons, firms or corporations designated by Landlord
and Tenant as insured, and shall contain a clause that the insurer will not
cancel or change the insurance without first giving the Landlord ten (10) days
prior written notice. Such insurance shall include an endorsement permitting
Landlord and Property Manager to recover damage suffered due to act or omission
of Tenant, notwithstanding being named as an additional "Insured party" in such
policies. Such insurance may be furnished by Tenant under any blanket policy
carried by it or under a separate policy therefor. The insurance shall be with
an insurance company approved by Landlord and a copy of the paid-up policy
evidencing such insurance or a certificate of insurer

                                       9
<PAGE>   13

certifying to the issuance of such policy shall be delivered to Landlord. If
Tenant fails to provide such insurance, Landlord may do so and charge same to
Tenant.

        Tenant will indemnify, defend and hold Landlord harmless from and
against any and all claims, connection with loss of life, personal injury and/or
damage to actions, damages, liability and expense in property arising from or
out of any occurrence in, upon or at the Premises or from the occupancy or use
by Tenant of the Premises or any part thereof, or occasioned by any act or
omission of Tenant, its agents, contractors, employees, servants, sublessees,
concessionaires or business invitees unless caused by the negligence of Landlord
its employees, contractors or agents, and to the extent not covered by its fire,
casualty and liability insurance. In case Landlord shall, without fault of its
part, be made a party to any litigation commenced by or against Tenant, then
Tenant shall protect and hold Landlord harmless and shall pay ALL costs,
expenses and reasonable attorney fees incurred or paid by either in defending
itself or enforcing the covenants and agreements of this Lease.

        SECTION 11.02 FIRE AND CASUALTY INSURANCE.

                (a) Subject to the provisions of this Section 11.02, Landlord
        shall secure, pay for, and at all times during the terms hereof
        maintain, insurance providing coverage upon the building improvements in
        an amount equal to the full insurable value thereof (as determined by
        Landlord) and insuring against the perils of fire, extended coverage,
        vandalism, and malicious mischief. All insurance required hereunder
        shall be written by reputable, responsible companies licensed in the
        State of Utah. Tenant shall have the right, at its request at any
        reasonable time, to be furnished with copies of the insurance policies
        then in force pursuant to this Section, together with evidence that the
        premiums therefor have been paid.

                (b) Tenant agrees to maintain at its own expense such fire and
        casualty insurance coverage as Tenant may desire or require in respect
        to Tenant's personal property, equipment, furniture, fixtures or
        inventory and Landlord shall have no obligation in respect to such
        insurance or losses. All property kept or stored on the Premises by
        Tenant or with Tenant's permission shall be so done at Tenant's sole
        risk and Tenant shall indemnify Landlord against and hold it harmless
        from any claims arising out of loss or damage to same.

                (c) Landlord represents that the Premises will be initially
        designed to permit the operation of Tenant's computer-related business
        as described to Landlord as of the date of this Lease without any
        increase in casualty insurance premium. Thereafter, Tenant will not
        permit said Premises to be used for any purpose which would render the
        insurance thereon void or cause cancellation thereof or increase the
        insurance risk or increase the insurance premiums (unless Tenant agrees
        to pay such increased premiums) in effect just prior to the commencement
        of this Lease. Tenant agrees to pay as additional rent the total amount
        of any increase in the insurance premium of Landlord over that in effect
        prior to the commencement of this lease resulting from Tenant use of the
        Premises. If Tenant installs any electrical or other equipment which
        overloads the lines in the Premises, Tenant shall at its own expense
        make whatever changes are necessary to comply with the requirements of
        Landlord's insurance.

                (d) Tenant shall be responsible for all glass breakage within
        the Premises and any exterior glass breakage resulting from acts or
        negligence of Tenant, its employees, agents, contractors, licensees,
        subtenants, or customers and agrees to immediately replace all glass
        broken or damaged, for which Tenant is responsible, with glass of the
        same quality as that broken or damaged. Landlord may replace, at
        Tenant's expense, any such broken or damaged glass if not replaced by
        Tenant within five (5) days after such damage and charge the cost
        thereof to Tenant. Landlord shall be responsible for replacement of any
        other damaged glass at the Premises or the Building and shall similarly
        replace such in the same manner required of Tenant hereunder.

        SECTION 11.03 WAIVER OF SUBROGATION. Each party hereto does hereby
release and discharge the other party hereto and any officer, agent, employee or
representative of such party, of and from any liability whatsoever hereafter
arising from loss, damage or injury caused by fire or other casualty for which
insurance (permitting waiver of liability and containing a waiver of
subrogation) is carried by the injured party at the time of such loss, damage or
injury to the extent of any recovery by the injured party under such insurance.

                          ARTICLE XII. UTILITY CHARGES

        SECTION 12.01 OBLIGATION OF LANDLORD. Subject to the terms of Section
3.03 and unless otherwise agreed in writing by the parties, during the term of
this Lease the Landlord shall cause to be furnished to the Premises during
standard business hours (7:00 a.m. to 6:00 p.m. Monday through Friday and 8:00
a.m. to 1:00 p.m. on Saturday), except Holidays, the following utilities and
services, the cost and expense of which shall be included in Direct Costs,
Metered Costs and/or Basic Costs as appropriately categorized by the Landlord:

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<PAGE>   14

        (a)     Electricity, water, gas and sewer service.

        (b)     Telephone connection, but not including telephone stations and
                equipment (it being expressly under-stood and agreed that Tenant
                shall be responsible for the ordering and installation of
                telephone lines and equipment which pertain to the Premises).

        (c)     Heat and air-conditioning to such extent and to such levels as,
                in Landlord's judgment, is reasonably required for the
                comfortable use and occupancy of the Premises subject however to
                any limitations imposed by University Research Park or any
                government agency. The parties agree and understand that the
                above heat and air-conditioning will be provided Monday through
                Friday from 7:00 a.m. to 6:00 p.m. and Saturday from 8:00 a.m.
                to 1:00 p.m.

        (d)     Snow removal and parking lot sweeping services.

        (e)     Elevator service.

        SECTION 12.02 OBLIGATIONS OF TENANT. Tenant shall arrange for and shall
pay the entire cost and expense of all telephone stations, equipment and use
charges, electric light bulbs (but not fluorescent bulbs used in fixtures
originally installed in the Premises) and ALL other materials and services not
expressly required to be provided and paid for pursuant to the provisions of
Section 12.01 above. Tenant covenants to use good faith efforts to reasonably
conserve utilities by turning off lights and equipment when not in use and
taking such other reasonable actions in accordance with sound standards for
energy conservation. Landlord reserves the right at Landlord's sole expense
(without reimbursement for such installation and meter costs from Tenant) to
separately meter or otherwise monitor any utility usage and to separately charge
Tenants for its own utilities, in which case an equitable adjustment shall be
made to Base Rental and Tenant's share of Operating Expenses as set forth in
this Lease. Additional limitations of Tenant are as follows:

                (a) Tenant will not, without the written consent of Landlord,
        which consent shall not be unreasonably withheld, use any machine or
        device at the Premises using current in excess of 208 volts which will
        in any way or to any extent increase the amount of electricity or water
        usually furnished or supplied for use on the Premises for the use
        designated in Section 7.01 above, nor connect with electrical current,
        except through existing electrical outlets in the Premises, or water
        pipes, any apparatus or device, for the purposes of using electric
        current or water.

                (b) If Tenant shall require water or electric current in excess
        of that usually furnished or supplied for use of the Premises, or for
        purposes other than those designated in Section 7.01 above, Tenant shall
        first procure the written consent of Landlord for the use thereof, which
        consent Landlord may refuse and/or Landlord may cause a water meter or
        electric current meter to be installed in the Leased Premises, so as to
        measure the amount of water and/or electric current consumed for any
        such use. The cost of such meters and of installation maintenance, and
        repair thereof shall be paid for by Tenant and Tenant agrees to pay
        Landlord promptly upon demand by Landlord for all such water and
        electric current consumed as shown by said meters, at the rates charged
        for such service by the City in which the Building is located or the
        local public utility, as the case may be, furnishing the same, plus any
        additional expense incurred in keeping account of the water and electric
        current so consumed.

                (c) If and where heat generating devices are used in the
        Premises which materially affect the temperature otherwise maintained by
        the air conditioning system, Landlord reserves the right to install
        additional or supplementary air conditioning units for the Premises, and
        the entire cost of installing operating, maintaining and repairing the
        same shall be paid by Tenant to Landlord promptly after demand by
        Landlord.

                To the extent that Tenant operates hours in excess of the stated
        standard business hours, Tenant may cause Landlord to provide services
        set forth in Section 12.01 (a), (b), (c) and (e) above; however, Tenant
        shall pay extra hourly utility charges as set forth in Section 1.01(S)
        herein. If electricity is metered pursuant to Section 3.03(c), then
        Tenant shall not be required to pay extra electrical charges as
        electrical usage during 'excess hours' will be metered and charged to
        Tenant in any case.

        SECTION 12.03 LIMITATIONS ON LANDLORDS LIABILITY. Landlord shall not be
liable for and Tenant shall not be entitled to terminate this Lease or to
effectuate any abatement or reduction of rent by reason of Landlord's failure to
provide or furnish any of the foregoing utilities or services if such failure
was reasonably beyond the control of Landlord. In no event shall Landlord be
liable for loss or injury to persons or property, however, arising or occurring
in connection with or attributable to any failure to furnish such utilities or
services even if within the control of Landlord.

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<PAGE>   15

          ARTICLE XIII. OFF-SET STATEMENT, ATTORNMENT AND SUBORDINATION

        SECTION 13.01 OFF-SET STATEMENT. Tenant agrees within ten (10) days
after request therefor by Landlord to execute in recordable form and deliver to
Landlord a statement in writing, certifying

                (a)     that this Lease is in full force and effect,
                (b)     the date of commencement of the Rental Term of this
                        Lease,
                (c)     that rent is paid currently without any off-set or
                        defense thereto,
                (d)     the amount of rent, if any paid in advance, and
                (e)     that there are no uncured defaults by Landlord or
                        stating those claimed by Tenant.

        SECTION 13.02 ATTORNMENT. Tenant shall, in the event any proceedings are
brought for the foreclosure of, or in the event of exercise of the power of sale
under any mortgage or deed of trust made by Landlord covering the Premises,
attorn to the purchaser upon any such foreclosure or sale and recognize such
purchaser as the Landlord under this Lease.

        SECTION 13.03 SUBORDINATION. Tenant agrees that this Lease shall, at the
request of Landlord, be subordinate to any first mortgages or deeds of trust
that may hereafter be placed upon said Premises and to any and all advances to
be made thereunder, and to the interest thereon, and all renewals, replacements
and extensions thereof, provided the mortgagees or trustees named in said
mortgages or deeds of trust shall agree to recognize the Lease of Tenant in the
event of foreclosure, if Tenant is not in default and execute a non-disturbance
agreement in a form acceptable to Landlord's lender.

        SECTION 13.04 MORTGAGEE SUBORDINATION. Tenant hereby agrees that this
Lease shall, if at any time requested by Landlord or any lender in respect to
Landlord's financing of the building or project in which the Premises are
located or any portion hereof, be made superior to any mortgage or deed of trust
that may have preceded such Lease.

        SECTION 13.05 REMEDIES. Tenant hereby irrevocably appoints Landlord as
attorney-in-fact for the Tenant with full power and authority to execute and
deliver in the name of the Tenant any such instruments described in this Article
XIII upon failure of the Tenant to execute and deliver any of the above
instruments within fifteen (15) days after written request so to do by
Landlord; and such failure shall constitute a breach of this Lease entitling the
Landlord, at its option, to cancel this Lease and terminate the Tenant's
interest therein.

                             ARTICLE XIV. ASSIGNMENT

        SECTION 14.01 ASSIGNMENT. Tenant may assign or sublet all or any portion
of the Premises, or any part thereof for the same use permitted in Section 1.01
(F), provided that Tenant shall maintain continuing liability for all
obligations under this Lease. Tenant may not assign or sublet for any other use
without the written consent of Landlord, which consent will not be withheld
unreasonably.

                          ARTICLE XV. WASTE OR NUISANCE

        SECTION 15.01 WASTE OR NUISANCE. Tenant shall not commit or suffer to be
committed any waste upon the Premises, or any nuisance or other act or thing
which may disturb the quite enjoyment of any other tenant in the building in
which the Premises may be located, or elsewhere within the Building.

                              ARTICLE XVI. NOTICES

        SECTION 16.01 NOTICES. Except as provided in Section 19.01, any notice
required or permitted hereunder to be given or transmitted between the parties
shall be either personally delivered, or mailed postage prepaid by registered
mall, return receipt requested, addressed if to Tenant at the address set forth
in Section 1.01 (E), and if to Landlord at the address set forth in Section
1.01(C). Either party may, by notice to the other given as prescribed in this
Section 16.01, change its above address for any future notices which are mailed
under this Lease.

                    ARTICLE XVII. DESTRUCTION OF THE PREMISES

        SECTION 17.01 DESTRUCTION.

                (a) If the Premises are partially or totally destroyed by fire
        or other casualty insurable under standard fire insurance policies with
        extended coverage endorsement so as to become

                                       12
<PAGE>   16

        partially or totally untenantable, the same shall be repaired or rebuilt
        as speedily as practical under the circumstances at the expense of the
        Landlord, unless Landlord elects not to repair or rebuild as provided in
        Subsection (b) of this Section 17.01. During the period required for
        restoration, a just and proportionate part of Base Rent, additional rent
        and other charges payable by Tenant hereunder shall be abated until the
        Premises are repaired or rebuilt. Notwithstanding the above, if Landlord
        cannot reasonably restore the Premises to a tenantable condition within
        120 days after the occurrence of the casualty, then Landlord shall
        notify Tenant and Tenant may elect to terminate this Lease by giving
        written notice to Landlord within 10 days after receipt of Landlord's
        notice.

                (b) If the Premises are (I) rendered totally untenantable by
        reason of an occurrence described in Subsection (a), or (II) damaged or
        destroyed as a result of a risk which is not insured under Landlord's
        fire insurance policies, or (III) at least twenty percent (20%) damaged
        or destroyed during the last two years of the Rental Term, or (IV) if
        the Building is damaged in whole or in part (whether or not the Premises
        are damaged), to such an extent that Tenant cannot practically use the
        Premises for its intended purpose, then and in any such events Landlord
        may at its option terminate this Lease Agreement by notice in writing to
        the Tenant within sixty (60) days after the date of such occurrence.
        Unless Landlord gives such notice, this Lease Agreement will remain in
        full force and effect subject to this Section 17.01 and Landlord shall
        repair such damage at its expense as expeditiously as possible under the
        circumstances.

                (c) If Landlord should elect or be obligated pursuant to
        Subsection (b) above to repair or rebuild because of any damage or
        destruction, Landlord's obligation shall be limited to the original
        Building any other work or improvements which may have been originally
        performed or installed at Landlord's expense. If the cost of performing
        Landlord's obligation exceeds the actual proceeds of insurance paid or
        payable to Landlord on account of such casualty, Landlord may terminate
        this Lease Agreement unless Tenant, within fifteen (15) days after
        demand therefor, deposits with Landlord a sum of money sufficient to pay
        the difference between the cost of repair and the proceeds of the
        insurance available for such purpose. Tenant shall replace all work and
        improvements not originally installed or performed by Landlord at its
        expense.

                (d) Except as stated in this Article XVII, Landlord shall not be
        liable for any loss or damage sustained by Tenant by reason of
        casualties mentioned hereinabove or any other accidental casualty.

                           ARTICLE XVIII. CONDEMNATION

        SECTION 18.01 CONDEMNATION. As used in this Section the term
"Condemnation Proceeding" means any action or proceeding in which any interest
in the Premises or Building is taken for any public or quasi-public purpose by
any lawful authority through exercise of the power of eminent domain or right of
condemnation or by purchase or otherwise in lieu thereof. If the whole of the
Premises is taken through Condemnation Proceedings, this Lease shall
automatically terminate as of the date possession is taken by he condemning
authority. If in excess of twenty-five (25%) percent of the Premises is taken,
either party hereto shall have the option to terminate this Lease by giving the
other written notice of such election at any time within thirty (30) days after
the date of taking. If less than twenty-five (25%) percent of the space is taken
and Landlord determines, in Landlord's sole discretion, that a reasonable amount
of reconstruction thereof will not result in the Premises or the Building
becoming a practical improvement reasonably suitable for use for the purpose for
which it is designed, then Landlord may elect to terminate this Lease Agreement
by giving thirty (30) days written notice as provided hereinabove. In all other
cases, or if neither party exercises its option to terminate, this Lease shall
remain in effect and the rent payable hereunder from and after the date of
taking shall be proportionately reduced in proportion to the ratio of: (1) the
area contained in the Premises which is capable of occupancy after the taking;
to (II) the total area contained in the Premises which was capable of occupancy
prior to the taking. in the event of any termination or rental reduction
provided for in this Section, there shall be a proration of the rent payable
under this Lease and Landlord shall refund any excess theretofore paid by
Tenant. Whether or not this Lease is terminated as a consequence of Condemnation
Proceedings, all damages or compensation awarded for a partial or total taking,
including any sums compensating Tenant for diminution in the value of or
deprivation of its leasehold estate, shall be the sole and exclusive property of
Landlord, except that Tenant will be entitled to any awards intended to
compensate Tenant for expenses of locating and moving Tenant's operations to a
new space.

                         ARTICLE XIX. DEFAULT OF TENANT

        SECTION 19.01 DEFAULT - RIGHT TO RE-ENTER. In the event of any failure
of Tenant to pay any rental due hereunder within ten (10) days after written
notice that the same is past due shall have been mailed to Tenant, or any
failure by Tenant to perform any other of the terms, conditions or covenants
required of Tenant by this Lease within thirty (30) days after written notice of
such default shall have been mailed to Tenant, or if Tenant shall permit this
Lease to be taken under any writ of execution, then Landlord, besides other
rights or remedies it may have, shall have the right to declare this Lease
terminated and shall

                                       13
<PAGE>   17

have the immediate right of re-entry and may remove all persons and property
from the Premises. Such property may be removed and stored in a public warehouse
or elsewhere at the cost of and for the account of Tenant, without evidence of
notice or resort to legal process and without being deemed guilty of trespass,
or becoming liable for any loss or damage which may be occasioned thereby.
Tenant hereby waives all compensation for the forfeiture of the term or its loss
of possession of the Premises in the event of the forfeiture of this Lease as
provided for above. If Tenant has abandoned the Premises and notices are not
deliverable to Tenant at the address provided by Tenant for notices, in lieu of
mailing, Landlord may conspicuously post such notice for ten (10) consecutive
days at the main entrance to or in front of the Premises, and such notice shall
constitute a good, sufficient, and lawful notice for the purpose of declaring a
forfeiture of this Lease and for terminating all of the rights of the Tenant
hereunder.

        SECTION 19.02 DEFAULT - RIGHT TO RE-LET. Should Landlord elect to
re-enter, as herein provided, or should it take possession pursuant to legal
proceedings or pursuant to any notice provided for by law, it may either
terminate this Lease or it may from time to time, without terminating this
Lease, make such reasonable alterations and repairs as may be necessary in order
to relet the Premises, and may relet said Premises or any part thereof for such
term or terms (which may be for a term extending beyond the term of this Lease)
and at such rental or rentals and upon such other terms and conditions as
Landlord in its sole discretion may deem advisable. Upon each such reletting,
all rentals received by Landlord from such reletting shall be applied first to
the payment of any reasonable costs and expenses of such reletting, including
brokerage fees and attorney's fees and costs of such alterations and repairs;
second, to the payment of rent or other unpaid obligations due hereunder; and
the residue, if any, shall be held by Landlord and applied in payment of future
rent as the same may become due and payable hereunder. If such rental received
from such reletting during any month be less than that to be paid during that
month by Tenant hereunder, Tenant shall pay any such deficiency to Landlord.
Such deficiency shall be calculated and paid monthly. No such re-entry or taking
possession of said Premises by Landlord shall be construed as an election on its
part to terminate this Lease unless a written notice of such intention be given
to Tenant or unless the termination thereof be decreed by a court or competent
jurisdiction. Notwithstanding any such reletting without termination, Landlord
may at any time elect to terminate this Lease for such previous default. Should
Landlord at any time terminate this Lease for any default, in addition to any
other remedies it may have, it may recover from Tenant all damages it may incur
by reason of such default, including the cost of recovering the Premises,
reasonable attorney's fees, and including the worth at the time of such
termination of the excess, if any, of the amount of rent and charges equivalent
to rent reserved in this Lease for the remainder of the stated term over the
then reasonable rental value of the Premises for the remainder of the stated
term, all of which amounts shall be immediately due and payable.

        SECTION 19.03 LEGAL EXPENSES. In case of default by either party in the
performance and obligations under this Lease, the defaulting party shall pay all
costs incurred in enforcing this Lease, or any right arising out of such
default, whether by suit or otherwise, including a reasonable attorney's fee.

               ARTICLE XX. BANKRUPTCY, INSOLVENCY OR RECEIVERSHIP

        SECTION 20.01 ACT OF INSOLVENCY, GUARDIANSHIP, ETC. The following shall
constitute a default of this Lease by the Tenant for which Landlord, at
Landlord's option, may immediately terminate this Lease.

                (a) The appointment of a receiver to take possession of all or
        substantially all of the assets of the Tenant.

                (b) A general assignment by the Tenant of his assets for the
        benefit of creditors.

                (c) Any action taken or suffered by or against the Tenant under
        any federal or state insolvency or bankruptcy act.

                (d) The appointment of a guardian, conservator, trustee, or
        other similar officer to take charge of all or any substantial part of
        the Tenant's property.

        Except as set forth herein, neither this Lease, nor any interest therein
nor any estate thereby created shall pass to any trustee, guardian, receiver or
assignee for the benefit of creditors or otherwise by operation of law.

                          ARTICLE XXI. LANDLORD ACCESS

        SECTION 21.01 LANDLORD ACCESS. Landlord or Landlord's agent shall have
the right to enter the Premises at all reasonable times to examine the same, or
to show them to prospective purchasers or

                                       14
<PAGE>   18

lessees of the Building, or to make all repairs, alterations, improvements or
additions as Landlord may deem necessary or desirable, and Landlord shall be
allowed to take all material into and upon said Premises that may be required
therefor without the same constituting an eviction of Tenant in whole or in
part, and rent shall not abate while said repairs, alterations, improvements, or
additions are being made, by reason of loss or interruption of business of
Tenant, or otherwise. During the ninety days prior to the expiration of the
Rental Term of this Lease or any renewal term, Landlord may exhibit the Premises
to prospective tenants and place upon the Premises the usual notices "To Let" or
"For Rent" which notices Tenant shall permit to remain thereon with molestation.

                          ARTICLE XXII. LANDLORD'S LIEN

        SECTION 22.01 LANDLORD'S LIEN. Tenant hereby grants to Landlord a lien
upon the improvements, trade fixtures and furnishings of Tenant to secure full
and faithful performance of all of the terms of this Lease. Landlord agrees to
subordinate its lien to Tenant's equipment financing lender provided such is on
the form provided by Landlord.

                           ARTICLE XXIII. HOLDING OVER

        SECTION 23.01 HOLDING OVER. Any holding over after the expiration of the
Rental Term hereof shall be construed to be a tenancy at sufferance and all
provisions of this Lease Agreement shall be and remain in effect except that the
monthly rental shall be double the amount of rent (including any adjustments as
provided herein) payable for the last full calendar month of the Rental Term
including renewals or extensions.

        SECTION 23.02 SUCCESSORS. All rights and liabilities herein given to, or
imposed upon, the respective parties hereto shall extend to and bind the several
respective heirs, executors, administrators, successors and assigns of the said
parties; and if there shall be more than one tenant, they shall all be bound
jointly and severally by the terms, covenants and agreements herein.

                       ARTICLE XXIV. RULES AND REGULATIONS

        SECTION 24.01 RULES AND REGULATIONS. Tenant shall comply with all
reasonable nondiscriminatory rules and regulations which are now or which may be
hereafter prescribed by the Landlord and posted in or about said Premises or
otherwise brought to the notice of the Tenant, both with regard to the project
as a whole and to the Premises including common facilities.

                          ARTICLE XXV. QUIET ENJOYMENT

        SECTION 25.01 QUIET ENJOYMENT. Upon payment by the Tenant of the rents
herein provided, and upon the observance and performance of all the covenants,
terms and conditions on Tenant's part to be observed and performed, Tenant shall
peaceably and quietly hold and enjoy the Premises for the term hereby demised
without hindrance or interruption by Landlord or any other person or persons
lawfully or equitably claiming by, through or under the Landlord, subject,
nevertheless, to the terms and conditions of this Lease and actions resulting
from future eminent domain proceedings and casualty losses.

                         ARTICLE XXVI. SECURITY DEPOSIT

        SECTION 26.01 SECURITY DEPOSIT. The Landlord herewith acknowledges
receipt of the amount set forth in Section 1.01 (U) which it is to retain as
security for the faithful performance of all the covenants, conditions and
agreements of this Lease, but in no event shall the Landlord be obliged to apply
the same upon rents or other charges in arrears or upon damages for the Tenant's
failure to perform the said covenants, conditions and agreements; the Landlord
may so apply the Security Deposit, at its option; and the Landlord's right to
the possession of the Leased Premises for non-payment of rents or for other
reasons shall not in any event be affected by reason of the fact that the
Landlord holds this Security Deposit. The said sum, if not applied toward the
payment of rents in arrears or toward the payment of damages suffered by the
Landlord by reason of the Tenant's breach of the covenants, conditions and
agreements of this Lease, is to be returned to Tenant without interest when this
Lease is terminated, according to these terms, and in no event is the said
Security Deposit to be returned until Tenant has vacated the Leased Premises and
delivered possession to the Landlord.

                                       15
<PAGE>   19

        In the event that the Landlord repossesses Leased Premises because of
the Tenant's default or because of the Tenant's failure to carry out the
covenants, conditions and agreements of this Lease, Landlord may apply the said
Security Deposit toward damages as may be suffered or shall accrue thereafter by
reason of the Tenant's default or breach. In the event of bankruptcy or other
debtor-creditor proceedings against Tenant as specified in Article XX, the
Security Deposit shall be deemed to be applied first to the payment of Rents and
other charges due Landlord for the earliest possible periods prior to the filing
of such proceedings. The Landlord shall not be obliged to keep the said Security
Deposit as a separate fund, but may mix the same with its own funds.

                     ARTICLE XXVII. MISCELLANEOUS PROVISIONS

        SECTION 27.01 WAIVER. No failure on the part of Landlord or Tenant to
enforce any covenant or provision of this Lease shall discharge or invalidate
such covenant or provision or affect the right of that party to enforce the same
in the event of any subsequent breach. One or more waivers of any covenant or
condition by Landlord or Tenant shall not be construed as a waiver of a
subsequent breach of the same covenant or condition and the consent to or
approval of any subsequent similar act by the other party. No breach of a
covenant or condition of this Lease shall be deemed to have been waived by
Landlord or Tenant, unless such waiver be in writing signed by the waiving
party.

        SECTION 27.02 ENTIRE AGREEMENT. This Lease constitutes the entire
Agreement and understanding between the parties hereto and supersedes all prior
discussions, understandings and agreements. This Lease may not be altered or
amended except by a subsequent written agreement executed by all parties.

        SECTION 27.03 FORCE MAJEURE. Any failure to perform or delay in
performance by either party of any obligation under this Lease, other than
Tenant's obligation to pay rent, shall be excused if such failure or delay is
caused by any strike, lockout, governmental restriction or any similar cause
beyond the control of the party so falling to perform, to the extent and for the
period that such continues.

        SECTION 27.04 LOSS AND DAMAGE. The Landlord shall not be responsible or
liable to the Tenant for any loss or damage that may be occasioned by or through
the acts or omissions of persons occupying all or any part of the premises
adjacent to or connected with the Premises or any part of the building of which
the Premises are a part, or for any loss or damage resulting to the Tenant or
his property from bursting, stoppage or leaking of water, gas sewer or steam
pipes or for any damage or loss of property within the Premises from any cause
whatsoever.

        SECTION 27.05 ACCORD AND SATISFACTION. No payment by Tenant or receipt
by Landlord of a lesser amount than the amount owing hereunder shall be deemed
to be other than on account of the earliest stipulated amount receivable from
Tenant, nor shall any endorsement or statement on any check or any letter
accompanying any check or payment as rent be deemed an accord and satisfaction,
and Landlord may accept such check or payment without prejudice to Landlord's
right to recover the balance of such rent or receivable or pursue any other
remedy available under this Lease or the law of the state where the Premises are
located.

        SECTION 27.06 NO OPTION. The submission of this Lease for examination
does not constitute a reservation of or option for the Premises and this Lease
becomes effective as a lease only upon full execution and delivery thereof by
Landlord and Tenant.

        SECTION 27.07 ANTI-DISCRIMINATION. Tenant herein covenants by and for
itself, its heirs, executors, administrators and assigns and all persons
claiming under or through it, and this Lease is made and accepted upon and
subject to the following conditions: That there shall be no discrimination
against or segregation of any person or group of persons on account of race,
sex, marital status, color, creed, national origin or ancestry, in the leasing,
subleasing, assigning, use, occupancy, tenure or enjoyment of the Premises, nor
shall the Tenant itself, or any person claiming under or through it, establish
or permit any such practice or practices of discrimination or segregation with
reference to the selection, location, number, use or occupancy of tenants,
lessees, sublessees, or subtenants in the Premises.

        SECTION 27.08 SEVERABILITY. If any term, covenant or condition of this
Lease or the application thereof to any person or circumstance shall be invalid
or unenforceable to any extent, the remainder of this Lease, or the application
of such term, covenant or condition to persons or circumstances other than those
as to which it is held invalid or unenforceable, shall not be affected thereby
and each term, covenant or condition of this Lease shall be valid and be
enforced to the fullest extent permitted by law.

        SECTION 27.09 OTHER MISCELLANEOUS PROVISIONS. This instrument shall not
be recorded without the prior written consent of Landlord; however, upon the
request of either party hereto, the other party shall join in the execution of a
memorandum or "short form" lease for recording purposes which memorandum shall
describe the parties, the Premises, the Rental Term and shall incorporate this
Lease by reference, and may include other special provisions. The captions which
precede the Sections of this Lease

                                       16
<PAGE>   20

are for convenience only and shall in no way affect the manner in which any
provisions hereof is construed. In the event there is more than one Tenant
hereunder, the liability of each shall be joint and several. This instrument
shall be governed by and construed in accordance with the laws of the State
wherein the Premises are located. Words of any gender used in this Lease shall
be held to include any other gender, and words in the singular number shall be
held to include the plural when the sense requires. Time is of the essence of
this Lease and every term, covenant and condition herein contained.

        SECTION 27.10 REPRESENTATION REGARDING AUTHORITY. The persons who have
executed this Agreement represent and warrant that they are duly authorized to
execute this Agreement in their individual or representative capacity as
indicated.

        ADDITIONAL PROVISIONS: None

                                       17
<PAGE>   21
      IN WITNESS WHEREOF, Landlord and Tenant have executed and delivered this
Lease as of the day and year first above written.

SIGNATURES:

                                        LANDLORD

                                        PARADIGM RESOURCES, L.C., A UTAH
                                        LIMITED LIABILITY COMPANY

                                        By: /s/ W. RICHARDS WOODBURY
                                           -------------------------------------
                                           W. Richards Woodbury, Manager

                                        By: /s/ DON R. BROWN
                                           -------------------------------------
                                           Don R. Brown, Manager

                                        TENANT

                                        PARTNET, INC., A UTAH CORPORATION

                                        By: /s/ DON R. BROWN
                                           -------------------------------------
                                           Don R. Brown, President

                            LANDLORD ACKNOWLEDGMENT

STATE OF UTAH       )
                    :ss
COUNTY OF SALT LAKE )

     On this 12 day of January, 1999 before me personally appeared W. RICHARDS
WOODBURY and DON R. BROWN to me personally known, who being by me duly sworn
did each for himself say that he is a Manager of that certain limited liability
company known as PARADIGM RESOURCES, L.C., and that the within instrument was
executed on behalf of said company by authority granted in said companies
operating agreement.

             NOTARY PUBLIC
             STATE OF UTAH
[SEAL]    My Commission Expires              /s/ KIM A. KUBOTA
             June 21, 2001                   -----------------------------------
             KIM A. KUBOTA                   Notary Public
            2677 Parleys Way
          Salt Lake City, Utah 84109

                             TENANT ACKNOWLEDGMENT
                                  (CORPORATE)

STATE OF UTAH       )
                    :ss
COUNTY OF SALT LAKE )

     On this 12 day of January, 1999 before me personally appeared Don R.
Brown, known to me to be the President of Partnet, Inc., the corporation that
executed the within instrument, known to me to be the person who executed the
within instrument on behalf of the corporate therein named, and acknowledged to
me that such corporation executed the within instrument pursuant to its bylaws
or a resolution of its board of directors.

             NOTARY PUBLIC
             STATE OF UTAH
[SEAL]    My Commission Expires              /s/ KIM A. KUBOTA
             June 21, 2001                   -----------------------------------
             KIM A. KUBOTA                   Notary Public
            2677 Parleys Way
          Salt Lake City, Utah 84109

                                       18
<PAGE>   22
                                    GUARANTY

      TO INDUCE PARADIGM RESOURCES L.C., a Utah limited company, to enter into
that certain Lease Agreement dated the 12 day of January, 1999 by and between
PARADIGM RESOURCES L.C., a Utah limited liability company, and Don Brown hereby
guarantees to PARADIGM RESOURCES L.C., a Utah limited liability company, the
Landlord, and its successors and assigns the due and punctual payment of all
rent thereunder, and the performance of all covenants, conditions and agreements
to be paid or performed by Tenant in or under the foregoing Lease.

      Notwithstanding the above, the dollar amount of this Guaranty is expressly
limited amount of the "unamortized value" of the Landlord's Contribution to
Tenant's Work plus any interest accrued at fourteen (14%) percent per annum from
the date of demand for payment under this Guaranty to the date of actual
payment. Said "unamortized value" shall be product calculated by multiplying the
Landlord's Contribution to Tenant's Work as set forth in Section 1.01 (Q) as
adjusted pursuant to Section 1.01 (T) by a fraction the denominator of which
shall be sixty (60) and the numerator of which shall be the number of months
remaining in the lease term for which rent has not been paid.

     The undersigned waives any demand for performance upon Tenant and any
notice to the undersigned of non-payment or non-performance by Tenant and hereby
waives all suretyship defenses. The undersigned further consents to any
indulgences granted or allowed to Tenant, including but not limited to granting
of extensions of times for payment or taking of any notes or other obligations
or any security for payment of sums due or to become due, without notice to the
undersigned and without thereby in any manner releasing or affecting the
liability of the undersigned.

     DATED JANUARY 12, 1999

                                             /s/ DON R. BROWN
                                             -----------------------------------
                                             Don R. Brown

                                 ACKNOWLEDGMENT

STATE OF UTAH       )
                    : ss.
COUNTY OF SL        )

     On this 12 day of JANUARY 1999 personally appeared before me Don R. Brown,
signer of the foregoing instrument, who duly acknowledged to me that he executed
the same.

             NOTARY PUBLIC
             STATE OF UTAH
[SEAL]    My Commission Expires              /s/ KIM A. KUBOTA
             June 21, 2001                   -----------------------------------
             KIM A. KUBOTA                   Notary Public
            2677 Parleys Way
          Salt Lake City, Utah 84109
<PAGE>   23

                                  [FLOOR PLAN]

<PAGE>   24

                                  [FLOOR PLAN]

<PAGE>   25

                                  [FLOOR PLAN]

<PAGE>   26

                                   EXHIBIT "B"

                                LEGAL DESCRIPTION

      Beginning at a point on the northwesterly right-of-way line of Chipeta Way
said point being South 44(degrees)00'00" West along the monument line 546.107
feet and North 46(degrees)00'00" East 52.00 feet from a Salt Lake City monument
located at the P.T. of Chipeta Way and running thence South 44(degrees)00'00"
West along said northwesterly right-of-way line 43.261 feet to a point of
curvature; thence along the arc of a 660.000 foot radius curve to the right and
said northwesterly right-of-way line, through a central angle of
24(degrees)00'07", 276.484 feet to a point of compound curvature; thence along
the arc of a 45.000 foot radius curve to the right, through a central angle of
81(degrees)21'51 ", 63.903 feet to a point of reverse curvature, said point also
being on the northeasterly right-of-way line of Arapeen Drive; thence along the
arc of a 600.575 foot radius curve to the left, through a central angle of
18(degrees)21'58", 192.515 feet to a point of tangency; thence North
49(degrees)00'00" West along said northeasterly right-of-way line 484.077 feet;
thence North 41(degrees)00'00" East 300.000 feet; thence South 49(degrees)00'00"
East 800.892 feet to the point of beginning.

<PAGE>   27

                                   EXHIBIT "C"

                                 LANDLORD'S WORK

     The following is a description of the construction, and limitations of
same, which will be provided exclusively by the Landlord at Landlord's expense
unless indicated otherwise herein. The basic site, common areas, and building
shell improvements will be provided by Landlord in accordance with plans and
specifications, prepared by Landlord's Architect, and shall be of a type and
quality indicated herein or determined by Landlord's Architect. Where two types
of materials, structures, or installations are indicated, the option will be
exclusively with the Landlord.

A.    GENERAL

      1. CODE COMPLIANCE: Work shall satisfy all regulatory agency requirements
having jurisdiction over the project, including but not limited to, meeting all
applicable building codes, regulations and ordinances in force and adapted by
the local municipality, County and State building officials. The project shall
comply with the provisions of the Americans With Disability Act (ADA) in regard
to site and building accessibility, and parking requirements.

      2. GENERAL CONDITIONS: Work shall include all usual and customary costs
for General Conditions associated with Landlords work, including but not limited
to the following:

            a. Liability and builder's risk insurance;

            b. Costs for permits, sewer and water connection fees, etc.;

            c. Sales and use taxes;

            d. Temporary field offices, toilet facilities, supplies and
      equipment;

            e. Miscellaneous equipment rentals;

            f. Trash removal and clean-up;

            g. Survey, staking & layout;

            h. Jobsite field supervision;

            i. Mobilization;

            j. Temporary utility hook-ups and expenses for water, electricity
      and telephone;

            k. Quality assurance, including materials testing, inspections and
      special inspections;

            l. No performance and payment bonds are provided but Landlord
      warrants the completion of the work, and agrees to make payment for all
      obligations pertaining to Landlord's work.

      3. WARRANTY: All work shall have a minimum of one (1) year general
building warranty from the date of initial building completion, five (5) years
for HVAC compressors, and ten (10) years roof membrane and flashings.

      4. ENGINEERING: All construction shall be performed according to the
recommendations contained in Geotechnical Investigation and other engineering
reports specific to the site, and in accordance with good engineering and design
practices.

B.    SITE WORK

      1. EARTHWORK AND DRAINAGE: Perform all earthwork, excavation, grading, and
preparation of building pads and parking lot areas to receive final finishes.
Site to be graded to provide adequate site drainage, including storm water
retention areas, culverts, catch basins, drywalls, and other storm water
appurtenances. Storm water retention may occur in parking areas and drives
except at principal entries and access points.

      2. CONCRETE: Install all exterior concrete, curb and gutter, vertical
curbs, valley gutters, sidewalks, retaining walls, transformer and trash
enclosure pads, and patio areas.

<PAGE>   28

      3. LANDSCAPING: Furnish and install landscaping and automatically
controlled underground sprinkler systems in planters around the perimeter of the
building and parking lots where indicated on the Site Plan - Exhibit "A". The
general character and quality of such landscape improvements shall be similar to
that provided at other adjacent buildings.

      4. PARKING LOT PAVING: Install all parking lot improvements, asphalt
paving, striping, and signage substantially in accordance with the Site Plan -
Exhibit A. Parking to be laid out in a 90E configuration with designated
handicapped parking stalls and signage, and ten (10) designated guest parking
stalls near the main building entrance.

      5. UTILITIES: Provide all utility mains including culinary water, fire
protection, storm drainage, sanitary sewer, gas, electrical, and telephone and
install in accordance with the governing municipal and utility company
standards. Utility lines shall be sized to meet the requirements of the intended
building use and those set forth in this Exhibit C and Exhibit D.

      6. POWER AND TELEPHONE: Extend power and telephone mains to electrical
rooms and provide distribution panels at a central location as more specifically
described herein. Fiber optic service, if available, to be provided exclusively
by the telephone utility at the request of the Tenant. Cost, if any, of fiber
optic systems is not included in Landlord's work.

      7. TRASH ENCLOSURE: Provide one (1) trash enclosure to contain a standard
sized dumpster, located where shown on Site Plan. The enclosure shall be a
minimum of 5' high, constructed of materials and finishes compatible with the
exterior building and shall include access gates, concrete-filled protective
pipe bollards and a concrete housekeeping pad and apron.

      8. EXTERIOR LIGHTING: Provide parking lot lighting throughout the site
which shall consist of 30'-0" high pole-mounted fixtures on raised concrete
bases, with spacing and lamp sizes to achieve a minimum lighting level of 1.5
footcandles to ensure nighttime security for employees and to enhance the
property. Provide soffit or wall-mounted fixtures at all building entrances and
exits.

      9. EXTERIOR SIGNAGE: See Exhibit 'E' Sign Criteria.

C.    SHELL BUILDING

      1. SUPERSTRUCTURE: Construct a three-story building consisting of steel
structural support members on continuous concrete or spot footings of the shape,
size, and configuration as shown on Exhibit "A-1". All work to be in accordance
with plans and specifications prepared by Landlord's Architect and as follows.

            a. FOUNDATION: Design and install a concrete foundation system to
      resist all superimposed horizontal and vertical loads based upon the
      recommendations of the geotechnical investigation report and customary
      structural engineering practices.

            b. SLAB-ON-GRADE: The slab-on-grade shall be a minimum of 4" thick,
      3,000 psi concrete, with welded wire fabric reinforcing, supported on a 4"
      aggregate base course. Sawcut control joints at spacing intervals
      recommended by the structural engineer. Slabs shall be constructed with a
      flatness tolerance of 1/4" in 10' radius.

            c. COLUMNS: Structural columns shall be steel tube, wide flange or
      pipe, spaced at approximately 28'0" x 30'0" typical.

            d. STRUCTURAL FRAME. Combination of wide flange beams and girders
      with open web steel joist and girder/beams and composite steel and
      concrete suspended floor deck. Spacing to be as required to support
      suspended loads and support appropriate lateral and vertical loads.
      Lateral loads to be resisted utilizing moment frame design

            e. SUSPENDED FLOOR SLABS: 6" concrete on 3" steel deck capable of
      supporting a live load of 80 lbs. per square foot, and a dead load of 20
      lbs. per square foot, with a designed vibration frequency rating not more
      than 16,000 micro-in./sec.

            f. ROOF STRUCTURE: To be a combination of steel beam and open web
      steel joist and girder with steel deck. Roof structure shall slope to
      perimeter roof drains/scuppers at a minimum pitch of 1/4' per 1'-0".
      Provide built-up crickets around the building perimeter and at rooftop
      equipment to divert run-off toward roof drains.

            g. CLEARANCE: The clear height from floor to the underside of the
      first floor and structure above shall be 12'6" at the lowest point and
      from the wombsecond and third floors to the floor or roof structure above
      at the lowest point shall be 12'0" with approximately 2'0" depth
      of

<PAGE>   29

      structural support joists. Floor to floor height between first and second
      floor is 15'0" and between second and third floors and the roof is 14'6"
      total.

      2. EXTERIOR ENCLOSURE: To be a combination of load bearing masonry,
masonry veneer, and window wall more or less as depicted on Exhibit A-1.

            a. STRUCTURAL FRAME: To be covered with colored and/or decorative
      masonry units in a decorative configuration of colors, textures, and
      coursing that will provide relief to the primary building wall material.
      Veneers to use standard or large size brick units.

            b. GLAZING: Glazing shall be provided around the building perimeter,
      utilizing a combination of floor-to-ceiling storefront systems, full
      height slab-to-roof curtain wall systems and "ribbon" or strip window
      openings. The extent of glazing shall be as shown on the attached Exhibit
      A-1. Vision glass and spandrel panels shall consist of 1" thick tinted or
      reflective, insulated units set in manufacturer's standard color anodized
      aluminum frames.

            c. ENTRANCE DOORS AND HARDWARE: The main building entrance shall
      match the shell building glazing systems. A pair of main entrance doors
      and vestibule shall be provided with sidelights and manufacturer's
      standard push/pull entrances hardware assemblies. Secondary employee
      entrances shall be provided matching the shell building glazing systems
      with a single door and sidelight and manufacturers standard push/pull
      entrance hardware assembly. Entrances to be equipped with electronic key
      pad or card reading security lock mechanism at Landlord's option.

            d. EXTERIOR EXIT AND MAN-DOORS AND HARDWARE: Where a exterior door
      is for service use only, Landlord may provide a standard, painted,
      hollow-metal door and frame. Provide lockset-type hardware, closures and
      exit devices as required by code and to maintain building security.

            e. LOADING DOCK: Provide covered loading area with a 6'0 by 8'0
      double door at grade and secure area for temporary storage of delivered
      supplies and materials.

      3. ROOF: Roof structure to be designed to carry imposed equipment,
structural and snow drift loads and a 30 pound live load. Roof membrane and
roofing appurtenances to generally be as follows:

            a. MEMBRANE: To be a single-ply 60 mil un-reinforced or 45 mil
      reinforced mechanically fastened or ballasted EPDM membrane system.
      Provide a ten (10) year manufacturer's roof warranty.

            b. INSULATION: Roof insulation shall provide a minimum insulating
      value of R-19. Roof insulation shall be rigid board-type installed over
      the deck or fiberglass batt below the deck or combination thereof.

            c. DRAINAGE: The roof structure shall be designed and constructed to
      slope to perimeter roof drains and interior roof leaders that extend
      exposed down the inside face of the exterior walls. Primary drains to
      connect underground to storm water system. Over flow drains to be provided
      with turnouts daylighting at on-grade concrete splash blocks.

            d. ROOF ACCESS: Provide one (1) 2'-6" x 3'-0" interior roof hatch,
      with metal ships ladder, safety "ladder-up" post device and padlock, or at
      Landlord's option, extend a stairway to roof.

            e. ROOF CURBS: Provide permanent roof curbs, integrated into the
      roof structure, at all roof-mounted equipment.

            f. ROOF FLASHING: Provide a minimum of 24 gauge sheetmetal flashing,
      counter-flashing and reglets where necessary to establish a weather tight
      and moisture resistant condition.

            g. ROOF-MOUNTED EQUIPMENT SCREENING: Extend perimeter walls above
      the roof deck to a sufficient height, or construct equipment screen walls,
      to satisfy the local municipality's requirements for visually screening
      all roof-mounted equipment.

D.    COMMON AREAS, LOBBIES, CORRIDORS, AND RESTROOMS

      1. RESTROOMS FOR TENANT'S OCCUPYING FULL FLOORS: Tenant shall have
independent restrooms for its exclusive use which shall be constructed as part
of the "Additional Work To Which Construction Contribution Is Applied" or to
"Tenant Work".

      2. RESTROOMS FOR TENANT'S OCCUPYING PARTIAL FLOORS: Landlord shall
construct men's and women's restrooms containing the number of stalls required
by code in conformance with the American's With Disabilities Act and with
finishes indicated.

<PAGE>   30

            a. FINISHES: Floors to have ceramic tile with tile base. Wet walls
      to be ceramic tile. Other walls to have vinyl wall coverings over gypsum
      board. Ceilings to be painted gypsum board. All colors and types to be as
      selected by Landlord's architect.

            b. ACCESSORIES: Provide floor mounted enameled metal toilet
      partitions; and stainless steel or chrome plated surface mounted paper
      holders, coat hooks, grab bars, mirrors, soap dispensers, paper towel
      dispensers, waste receptacles, and sanitary napkin dispensers all in
      accordance with codes.

            c. MILLWORK: Provide artificial marble or laminate covered counter
      tops and drop panels with recessed ceramic or integral artificial marble
      walls bowls, Utilize chrome plated brass-bodied, electronically operated
      flush valves and faucets.

      3. COMMON AREAS: Common lobbies will be created at each main building
entrance together with stairways, elevator, elevator equipment, janitor's
mechanical and other such rooms which serve and/or are available for use by all
tenants within the building. Such common facilities may also include restrooms
on floors serving multiple tenants and connecting corridors where deemed
necessary.

      4. PUBLIC AREA FINISHES: Common lobbies, stairways, and corridors shall
have all finishes provided as follows:

            a. WALLS: Walls to be exposed decorative masonry, marble or ceramic
      tile, or gypboard. All gypboard walls to be either painted or covered with
      vinyl wall coverings or tile as selected by Landlord's architect.

            b. FLOORS: To have ceramic or marble tile and/or carpet. Carpet to
      be cut pile and/or loop nylon, 32 oz. minimum face weight, either
      stretched over pad or direct glued to floor surface at the option of
      Landlord's architect.

            c. BASE AND TRIM: Floor base to either be 6" high ceramic or marble
      tile or wood (stained or painted) as selected by Landlord's architect.
      Walls may also include other wood trims, chair rails, or crown molds as
      may be selected by Landlord's architect to achieve a pleasing and
      attractive decor.

            d. CEILINGS: To be a combination of suspended painted gypboard and
      2'0" x 2'0" acoustical tile and grid. Acoustical tile to have beveled or
      tegular edge on 1" wide grid. Colors to be as selected by Landlord's
      architect.

      5. INTERIOR DOORS AND HARDWARE: Landlord shall provide 3'-0" x 7'-0" solid
core wood doors with hollow metal or wood frame at Landlord's option, stained
and finished on all interior doors within or adjoining common areas. Hardware
will typically include 1-1/2 pair hinges, door stop, and commercial grade
lockset. Closer and rated assemblies to be provided where required by code.

      6. TENANT ENTRANCE DOORS AND SIDELIGHTS: To be provided between common
lobbies and Leased Premises. Assemblies to be constructed and rated in
accordance with codes. Doors to be flush panel solid core wood 3'0" x 7'0" with
adjoining sidelight in painted hollow metal frames together with 1-1/2" pair
hinges, door stop, and closer. Sidelight(s) to be 2'0" x 7'0" minimum width with
clear wired/tempered glass. Entrances to be equipped with electronic card
reading security lock mechanism or standard mortise type lockset with deadbolt
at Landlord's option.

      7. EQUIPMENT AREA FINISHES: Provide mechanical and/or service and
equipment areas including walkways, trash rooms, janitors rooms, common
electrical rooms, mechanical rooms and shafts. Finishes to be as follows:

            a. WALLS: Painted gypboard.

            b. FLOORS: Sealed concrete or vinyl composition tile as selected by
      Landlord's architect.

            c. BASE: 4" coved vinyl base where provided. Penthouse mechanical
      rooms will have no base.

            d. CEILINGS: Suspended gypboard, 2'0" x 4'0" acoustical tile, or
      exposed to structure as deemed appropriate by Landlord's architect.

      8. HVAC AND LIGHTING: All common areas shall include complete HVAC system,
distribution, ventilation, controls, and finishes, and complete electrical power
service and lighting. Lighting in common lobbies and corridors to either be
recessed cans with fluorescent lamps, lay-in parabolic fixtures, or other
decorative fixture as selected by Landlord's architect.

<PAGE>   31

      9. ALTERATIONS: Landlord reserves the right to make any additional
changes, modifications, alterations, or additions to common areas utilizing a
design and materials as determined appropriate by Landlord's Architect to
achieve overall building design schemes developed by Landlord's Architect.

      10. DEMISING WALLS: Landlord shall install demising partitions between
common lobbies, corridors, stairways, restrooms, and leased premises which shall
be one-hour fire-rated and constructed of masonry or steel studs and 5/8" gypsum
board. Such partitions shall extend from floor to underside of roof or floor
construction above. No gypsum board to be installed on Tenant side of demising
walls, corridors, and exterior walls. Make

E.    LANDLORD'S WORK WITHIN THE PREMISES (PAID FOR LANDLORD AS PART OF SHELL
      CONSTRUCTION)

      1. UTILITIES: Basic functional main utility lines and systems shall be
provided to all common facilities and to mechanical equipment, central
telephone, and electrical rooms or panels on each floor or within the Leased
Premises as indicated:

      2. HEATING, VENTILATING AND AIR CONDITIONING (HVAC): The facility shall
contain a complete heating, ventilating and air conditioning system, consisting
of common boiler, chiller, air handling fans, building exhaust, relief, and
makeup air fans, water towers, and other central mechanical equipment required
for a variable air volume distribution system. The HVAC system shall be designed
to meet ASHRAE standards and shall be based upon the occupancy levels and
loading conditions indicated herein. Central mechanical equipment shall be
housed in a mechanical room in or around the central core of the building or
where otherwise determined necessary.

            a. DESIGN CRITERIA: The HVAC system shall be designed to maintain
      the facility with an inside design temperature between 74E F and 78E F dry
      bulb summer and 68E F and 70E F dry bulb winter when outside temperatures
      are 8E F dry bulb winter and 95E F dry bulb - 66E F wet bulb summer.
      Internal gain design shall be based upon 2.75 watts per square foot
      lighting maximum, 4 watts per square foot power and miscellaneous maximum,
      and 1 person per 100 sq. ft. of net usable building area. Ventilation
      shall be 15 CFM per person.

            b. ZONES: The mechanical engineering design shall incorporate
      perimeter and interior zones, based upon solar exposure. Landlord to
      initially provide VAV boxes and controls for one zone per 2,000 sq. ft. of
      gross leaseable area.

            c. DUCTWORK: The base HVAC system shall include all central plant
      equipment, sheetmetal plenum drops, medium pressure supply air loop, and
      branch takeoffs with VAV boxes to each zone. Return air collection shell
      generally be by means of open air plenum above ceiling. A return
      air collection branch duct will be provided to within the Leased Premises
      for connection of laboratory return and / or exhaust air. Main supply
      ductwork shall be entirely insulated. Return air collection ductwork to be
      un-insulated.

            d. EXHAUST AND RELIEF AIR FANS: Provide central roof-mounted power
      exhaust fans and shafts, with factory curbs, and branch ductwork extended
      to Leased Premises to which tenant exhaust systems may attach. Exhaust and
      makeup air capacity shall be 150 cfm per 1,000 sq. ft. of gross leaseable
      area. Additional capacity is available for laboratory areas, fume hoods,
      etc. if needed at a cost of $1,000.00 per 1,000 cfm.

            e. TEMPERATURE CONTROL: The operation of each VAV box shall be
      controlled by a temperature sensor located within the zoned space. All
      temperature sensors and smoke detectors shall be interconnected with an
      energy management and monitoring system with pre-set limited controls
      adjustable from within the Premises.

            f. ENERGY MANAGEMENT SYSTEM (EMS): The HVAC system shall be
      controlled by a computerized energy management system, sufficient in
      capacity to monitor and control the operation of each piece of mechanical
      equipment during normal business hours, as well as after hour occupancy.
      The system shall also have the capability for lighting control and to
      interface with smoke detectors, fire alarm and security hardware devices.

            g. HOURS OF OPERATION: Unless indicated otherwise in this Lease,
      mechanical systems shall operate during all normal business hours from
      7:00 a.m. to 6:00 p.m. five days per week and 8:00 a.m. to 1:00 p.m. on
      Saturdays, except on holidays. Each leased space shall be equipped with
      one keyed manual, timed override switch per approximately 6,000 sq. ft. to
      permit operation of mechanical systems during after hours or weekend and
      holiday periods. Tenant to pay additional rent at Landlord's customary
      standard rate for off hours mechanical operation.

<PAGE>   32

            h. OTHER: All other HVAC secondary distribution supply and return
      air ductwork, registers, diffusers, grills, dampers, etc. shall be
      supplied as part of "Work Included To Which Construction Contribution Is
      Applied".

      3. PLUMBING: The building plumbing system shall include all main utility
piping to the Leased Premises together with piping necessary for interior storm
piping (roof leaders) and piping insulation; and all HVAC central equipment
piping and branch distribution piping to VAV boxes supplied by Landlord.
Plumbing systems to common facilities and exterior hose bibs to also be
provided.

            a. WATER: Provided in ceilings above restrooms, janitor's rooms,
      mechanical rooms, etc. A 1-1/2 inch water supply and shutoff valve to be
      provided to each leased premises.

            b. SEWER: Underground mains to be extended to restrooms, janitor's
      rooms, etc. A four (4) inch sewer line to be provided to each leased
      premises of sufficient depth to enable sewer access to all points within
      the premises.

            c. NATURAL GAS: None provided except as required to common boilers,
      HVAC equipment, and water heaters. Gas is available for Tenant at Tenant's
      cost for extending service and making a separate metered connection at gas
      service meter center.

            d. OTHER GASES: None provided. All such facilities and piping to be
      provided by Tenant.

      4. AUTOMATIC FIRE SPRINKLER SYSTEM: An overhead wet, fully automatic fire
sprinkler system shall be provided, consisting of a main fire riser, horizontal
distribution piping, and a combination of upright sprinkler heads at exposed
areas and pendent sprinkler heads at finished ceiling conditions. The fire
sprinkler system shall be designed for Light Hazard Group density in accordance
with NFPA 13. supplied by Tenant. Landlord shall provide a complete system
within the shell building and one drop and head per 130 sq. ft. within Leased
Premises.

            a. MONITORING: The fire sprinkler system shall incorporate all
      requirements of the local Fire Marshal. The fire sprinkler riser shall
      include electric alarm, water flow valve, and tamper devices for hook-up
      to a fire alarm monitoring service.

            b. CODE: All sprinkler piping shall be installed in accordance with
      NFPA 13 for seismic protection as required by local codes.

            c. OTHER: In IDF, Main Server Rooms, Computer Rooms, and other
      special areas, fire suppression units shall be supplied as part of "Work
      Included To Which Construction Contribution Is Applied".

      5. ELECTRICAL: Main building electrical systems to be provided of
sufficient size and capacity to accommodate Tenant's needs including main
electrical service which shall be brought from the closest available electrical
utility power source to a utility owned transformer and from such transformer to
interior service entrance sections located in a building main electrical room.

            a. POWER: Power to be of a sufficient size to accommodate Tenant's
      requirements as described herein. Main service to either be 277/480 volt
      with step down transformers for 120/208 volt receptacles and equipment or
      120/208 volt power supply throughout in a three phase, four-wire
      configuration.

            b. DESIGN CRITERIA: Tenant's designed power capacity shall be based
      upon an occupancy load of 1 person per 100 sq. ft. of net usable area,
      with 6 watts per square foot general and miscellaneous power use, and 2.75
      watts per sq. ft. lighting.

            c. PANELS: The service entrance section cabinet, current
      transformers, metering sections, main distribution panels and sub-panels
      shall be consolidated in an Electrical Room located in or around the
      central core of the building. To the extent determined advisable by the
      electrical engineer, if determined to be more economical, subpanels may be
      provided in locations outside of the main electrical room subject to
      approval of Tenant as to location. Panels to be of sufficient size to
      handle Tenant's requirements and to include main disconnect switch,
      together with wiring and raceways between main distribution cabinets and
      panels.

            d. POWER METERS: Power circuitry to accommodate Tenant's
      requirements for receptacles and equipment shall be 120/208 volt
      throughout in a three phase, four-wire configuration. Consumption shall be
      measured by means of a sub-meter placed around all power circuits used by
      Tenant. Tenant shall pay as additional rent for all power usage. Amount
      shall be determined by multiplying the watt hours used by the standard
      rate charged by the municipal power utility company.

<PAGE>   33

            e. LIGHTING: All ceiling lights to be 277/480 volt. Lights to be
      operable during all normal business hours as indicated herein and
      monitored to automatically shutoff at the close of normal operating hours.
      Leased Premises to be equipped with one keyed manual, timed override
      switch per approximately 6,000 sq. ft. to permit operation of ceiling
      lighting during after hours or weekend and holiday periods. Tenant to pay
      additional rent at Landlord's customary standard rate for off hours
      lighting operation

            f. TELEPHONE: Landlord to provide main telephone service trunk line
      into building and main cable to telephone equipment rooms on each floor.
      All terminations, cross-overs, and distribution wiring from panels to the
      various equipment and receptacles shall be supplied as part of "Work
      Included To Which Construction Contribution Is Applied".

            g. EMERGENCY POWER: Landlord has provided a diesel powered emergency
      generator to serve building emergency power needs with additional capacity
      for Tenant usage. Tenant may connect to the emergency power system at a
      cost of $350.00 per kilowatt of capacity. Tenant to pay all costs related
      to the extension of emergency circuits to Tenant's Leased Premises from
      central panels located on each floor.

            h. OTHER: All other electrical power distribution systems from
      panels to the various electrical equipment receptacles lighting, data, and
      telephone cabling, etc. shall be supplied as part of "Work Included To
      Which Construction Contribution Is Applied".

F.    PLANS AND SPECIFICATIONS

      1. SHELL DRAWINGS: Landlord shall initially prepare all final construction
drawings, details, and specifications completely describing site and building
improvements for Landlord provided work and building shell construction.
Landlord shall pay all costs and engineering fees required and related thereto.

      2. TENANT SPACE LAYOUT AND DESIGN: Landlord shall provide building shell
construction drawings to Tenant's space planner/architect. Space planner shall
prepare a preliminary space layout plan showing the configuration of various
spaces desired within the Leased Premises. Such drawing shall be prepared on CAD
using Landlord's shell building configuration. Landlord's architect shall review
such drawing, discuss any required modifications until the layout meets Landlord
and Tenant's mutual approval. After approval of space layout drawing Tenant's
space planner shall provide the following additional services:

            a. REFLECTED CEILING PLAN: To show the layout of lay-in ceilings and
      the location of all desired lay-in light fixtures, recessed cans, and
      other decorative lighting if any.

            b. ELECTRICAL POWER PLAN: To show the location of all electrical
      outlets, telephone or data connection points in fixed walls, special
      equipment, power poles if any, or other points of connection of electrical
      power to tenant landscaped furniture systems. Plan should include a
      complete description of the power requirements to each work station,
      conference rooms, server room, computer room, or other designated spaces.

            c. FINISH SCHEDULE: A schedule of finishes for each room, including
      specification or description of each finish material, paint color, floor
      covering, tile colors, etc.

            d. ELEVATIONS AND DETAILS: Elevations, details, or other information
      requested by Landlord's architect showing cabinetry and millwork or other
      special details and finishes.

            e. SPECIFICATIONS: Written data or cut sheets with respect to
      materials and finishes or other accessories, fixtures, hardware, and
      installations requested by Tenant to be provided by Landlord.

      3. TENANT CONSTRUCTION DRAWINGS: Upon receipt of final Tenant layout
drawings reflected ceiling plans, power plans, etc. Landlord shall prepare final
engineered working drawings including mechanical, plumbing, and electrical
drawings completely describing all work to be performed related to Tenant's
interior finishes and work required to which construction contributions is to be
applied. Tenant shall pay Landlord 65 cents per sq. ft. of gross leaseable area
for the cost of final engineering required and related thereto.

      4. TENANT'S APPROVAL: Tenant shall review final construction drawings. Any
changes required shall be promptly communicated to Landlord who shall revise the
construction drawings and re-submit to Tenant until such drawings are
satisfactory and agreeable to Tenant in all respects. Landlord will not commence
construction of Tenant's interior finishes until receipt of written approval
from Tenant of final construction plans.

<PAGE>   34

      5. TIMING: All plans and approvals or comments thereto shall be
communicated by Express Mail and where possible fax. Upon submission of plans to
either party, reviews and responses shall be given within five (5) working days
of receipt thereof. All plans shall be prepared as expeditiously as reasonably
possible so as to not delay construction. It is the intent that plans for
interior tenant finishes be completed within 45 days after the date of the
Lease.

      6. DEVIATIONS: Landlord may make minor deviations to the approved plan
where deemed necessary by Landlord's Architect due to site conditions or where
good engineering and design may so dictate provided the aesthetic effect or
function of the space is not materially altered.

      7. TENANT'S REPRESENTATIVE; RESPONSIBILITIES: Tenant shall designate an
individual to be considered as Tenant's representative who shall have authority
to approve and/or initiate changes with respect to Tenant's finish work. Unless
specifically notified otherwise, Landlord may rely on the directives or
instructions given by Tenant's representative and Tenant shall accept all
decisions and be responsible for the payment of all cost for work related to
changes or other improvements within the Lease Premises, as implemented under
the direction of the representative.

G.    CONSTRUCTION OF TENANT'S LEASED PREMISES

      1. GENERAL: The construction of Tenant's improvements shall generally be
by Landlord in accordance with the procedures and criteria herein. Tenant shall
be responsible for the entire cost thereof except to the extent that a Tenant
Improvement Allowance or Construction Contribution is specified in the Lease.
Tenant interior finish plans showing all Tenant finish construction to be
performed by Landlord will be prepared as indicated above.

      2. CONSTRUCTION PROCEDURE: Tenant finish plans shall be separately bid
from other construction work within the facility. Landlord shall obtain a
minimum of three proposals. Tenant shall review such proposals and may request
changes and modifications thereto to implement cost savings or other
requirements. Landlord will not commence construction until receipt of Tenant's
written approval of cost proposals, authorization to proceed, and payment of any
deposit is made.

      3. PAYMENT: Tenant may either provide a letter of credit in a form and
from a financial institution acceptable to landlord in the full amount of the
construction cost, or deposit funds in the full amount of the construction cost
in an escrow account upon which Landlord may draw, or provide some other
assurance acceptable to Landlord that Tenant has the financial capacity to pay
for its construction obligation. Where a Construction Allowance or Contribution
is provided by Landlord, Tenant shall only be required to provide evidence or
deposit funds in the amount by which the construction cost exceeds Landlord's
contribution.

      4. PROGRESS PAYMENTS: Tenant shall pay 50% of the payment required
pursuant to Section 6.3 above and the remaining fifty (50%) percent shall be
paid on or before January 15, 1999. Late payments to be assessed an interest
charge at a rate of one percent (1 %) per month.

      5. INSPECTION: Upon completion of the work, Tenant and Landlord shall
jointly inspect the space and prepare a deficiency list which describes any
defects or incomplete work. Landlord's contractor shall immediately make any
necessary corrections.

      6. CONSTRUCTION BY TENANT: In the event that this Lease requires Tenant's
interior finish to be constructed by Tenant or a contractor hired directly by
Tenant, all procedures regarding the preparation of plans and construction
drawings shall remain as indicated herein. The procedures regarding bidding,
contracting for, and payment described herein shall not apply. Tenant may not
proceed with any construction until all plans have been approved in writing by
Landlord. Tenant shall perform all work in accordance with Exhibit "D".

H.    ADDITIONAL WORK WITHIN TENANT'S LEASED PREMISES TO BE PROVIDED BY
      LANDLORD. (BEYOND THAT DESCRIBED ABOVE OR THAT WHICH CURRENTLY EXISTS).

      None

I.    WORK PROVIDED BY LANDLORD TO WHICH CONSTRUCTION CONTRIBUTION IS APPLIED.

      1.    DRYWALL CONSTRUCTION: All drywall surfaces shall be prepared for a
            smooth painted finish.

            a.    PERIMETER, DEMISING, AND AREA SEPARATION WALLS: Install 5/8"
                  Type X sheetrock extending from floor to window sill and from
                  window head to the underside of deck above, or where no
                  windows exist from floor to underside of deck. Fire tape as
                  required to achieve a 1-hour rating and install rockwool,
                  other acceptable insulation, or otherwise fill voids between
                  top of wall and deck flutes on all rated assemblies. Provide 2
                  layers of 5/8" sheetrock on area separation wall to achieve
                  2-hour rated assembly. Make allowance for deflection at top
                  track

<PAGE>   35

            b.    INTERIOR PARTITIONS: Conference rooms, server rooms, and other
                  designated walls to be constructed of 3-5/8" metal studs at
                  24" o.c., with sound insulation and 5/8" sheetrock on both
                  sides extending full height. Sheetrock shall be taped, sanded
                  and ready for wall finishes. Provide fire rated partition
                  assemblies where required by code. Partitions dividing other
                  Tenant rooms shall be similarly constructed except that no
                  sound insulation will be installed and partitions shall extend
                  to approximately 6" above the finished ceiling height. Ceiling
                  height is generally at 9'-0". In laboratory or other wet areas
                  use water resistant sheetrock.

            c.    COLUMNS: All perimeter and interior columns except tube
                  columns not engaging any partition wall shall be furred out
                  with metal studs and 5/8" gypsum board to 6" above finished
                  ceiling. Sheetrock shall be taped, sanded and ready for
                  finishes.

            d.    CEILINGS: Restroom, janitor's room, or other areas designated
                  by Tenant's space planner shall be suspended sheetrock on
                  metal tracks, taped and finished, ready for paint. Storage,
                  equipment or other special purpose rooms may be left exposed
                  to the structure where approved by Landlord.

      2.    DOORS, FRAMES & HARDWARE: Tenant interior doors, frames and hardware
            shall be consistent with those to be supplied by Landlord as part of
            building shell construction and as follows.

            a.    DOORS: Restroom and utility room doors shall be 3'-0" x 8'-0"
                  solid core, clear maple/with plain sliced veneers, or plastic
                  laminate clad doors, clad to match; pre-machined for hardware.
                  Provide UL fire rating labels as required.

            b.    FRAMES: All frames shall be 8'-0" height of welded hollow
                  metal construction with painted finish or pre-finished three
                  piece metal construction with snap on covers (Timely). Provide
                  UL fire rating labels as required.

            c.    HARDWARE: Provide a complete assembly of hardware for each
                  door, including locksets with lever handles, 1-1/2 pair
                  hinges, and door stops. Provide door closers where required by
                  code. Hardware shall be commercial grade, have a clear
                  aluminum (26D) finish, and meet the requirements of the ADA,
                  where applicable. Keying shall be coordinated with building
                  shell.

            d.    DOORS WITH SIDELIGHTS: Frames used in conjunction with doors
                  with sidelights to be clear anodized aluminum. Openings to
                  match standard details and to extend from floor to height of
                  door with intermediate, horizontal divider at 30". Provide
                  clear tempered glass. Where wireglass is required by code, use
                  type with square vertical and horizontal pattern.

      3.    WALL FINISHES: All interior sheetrock walls shall receive a standard
            three coat paint application. Colors to be at Tenant's option except
            in front reception areas. Vinyl wall covering to be provided in
            front reception areas. Vinyl wall covering of Tenant's choice and
            option may be utilized elsewhere in lieu of paint. In laboratory or
            other wet areas use epoxy paint, FRP board or other water resistant
            finish.

      4.    FLOOR FINISHES: Landlord shall provide 26 oz. level-loop carpet
            directly glued to floor throughout the Premises or other floor
            coverings as may be designated by Tenant's space planner. Equipment
            rooms, file rooms, or other areas designated by Tenant's space
            planner to have vinyl composition tile or static resistive tile.
            Laboratory areas subject to water or chemical spillage shall utilize
            chemical resistant and water tight materials and application
            methods. Colors and styles at Tenant's option, selected from
            manufacturer's standard line.

      5.    WALL BASE: To be 4" high, sewn edged carpet, straight or coved,
            vinyl base, wood or tile to be provided throughout. Colors at
            Tenant's option.

      6.    CEILING FINISHES: To be a factory finished, 1" wide suspended, metal
            grid system with 2'0" x 4'0" tegular edge and standard fissure
            finish, with a minimum STC rating of 65. Suspended gypboard or open
            ceilings may be utilized in special purpose rooms where requested by
            Tenant's space planner. Ceilings shall generally be constructed at
            9'-0" above finished floor except where Tenant's equipment or other
            structural elements dictate otherwise.

      7.    MILLWORK: Provide plastic laminate counter-top with 4" back-splash
            and base cabinets in breakrooms and other areas as mutually
            determined by Landlord's architect and Tenant's space planner. Wood
            casings, chair rails, ceiling coves, and/or base matching color and
            finish of wood doors may be used around doors and windows or in
            other locations where deemed acceptable by Tenant. Other millwork or
            shelving to be provided as detailed or directed by Tenant's space
            planner.

      8.    RESTROOMS: Not included, but provided as indicated in Section D of
            this Exhibit "C" Tenant may install additional restrooms, showers,
            or other special facilities requiring plumbing connections to the
            extent desired at Tenant's sole cost and expense.

      9.    BREAKROOM: Breakroom construction shall generally include plastic
            laminate clad, base cabinets, countertops, and wall cabinets of the
            length determined necessary by Tenant, with a two compartment sink,
            in-line electric water heater, and special electrical outlets for
            refrigerator, dishwasher, and microwave oven or other appliances.

      10.   WINDOW COVERINGS: To be 3" vertical shades of a uniform type and
            color as dictated by Landlord's architect on all exterior windows.
            Coverings on interior windows are at Tenant's option subject to
            approval by Landlord as to type and color.

<PAGE>   36

      11.   HVAC: Provide additional VAV boxes, associated water piping, and
            controls as required to augment that provided by Landlord, if
            necessary. All secondary supply and return air distribution from all
            VAV boxes and return air collection ducts, including all diffusers,
            registers, dampers, outlets, and grilles shall be provided. Make
            connections to shell provided systems. Provide final control wiring,
            balancing, and start-up, etc. utilizing materials and systems
            matching those provided elsewhere in the facility by Landlord.
            Exhaust fans in conference rooms and breakrooms shall be extended to
            main supply lines.

            a.    ZONES: The mechanical engineering design shall incorporate
                  perimeter and interior zones, based upon solar exposure, and
                  individual zones for spaces with special heating or air
                  conditioning demands, such as Computer Room; Main Server Room;
                  IDF Rooms; and all conference Rooms and Vendateria.

            b.    CONTROLS: All temperature sensors and smoke detectors shall be
                  interconnected with Landlord's energy management and
                  monitoring system. Each zone shall be equipped with
                  thermostatic control boxes adjustable within preset limits for
                  individual comfort. Type shall match those utilized elsewhere
                  in the building and each control shall be equipped with an
                  override switch for HVAC operation and a separate override
                  switch for ceiling lights. Override switches may be keyed at
                  Tenant's option.

            c.    SPECIAL PURPOSE ROOMS: Such rooms requiring 24 hour cooling or
                  which contain extraordinary loads must be equipped with
                  independent cooling equipment that is self-contained to the
                  extent possible. Remote condensers, if required, shall be
                  located within ceiling plenums, mechanical penthouses, or if
                  necessary, in alternate locations determined by Landlord (but
                  not on rooftops). All such equipment shall be connected to
                  Tenant's power panel and circuited through Tenant's power
                  submeter. Landlord reserves the right to assess a power
                  consumption surcharge to Tenant based on the load requirement
                  and demand factor associated with any such special purpose
                  equipment.

            d.    DUCTWORK: All supply ductwork to be metal with 1" wrap
                  insulation and/or insulated duct liner. Branch takeoffs from
                  supply air mains to be a minimum of 5'-0" in length. Flexible
                  ductwork may be utilized for drops but shall not exceed 10'-0"
                  in length. Provide balancing dampers as necessary. All bends
                  to have turning vanes.

            e.    EXHAUST SYSTEMS: Exhaust fans in conference rooms and
                  breakrooms shall be extended to main supply lines. Exhaust
                  duct from equipment hoods etc. to be connected to main exhaust
                  shafts and all required balancing and smoke/fire dampers and
                  controls provided. Utilize Teflon lined or other special duct
                  where good engineering practice may dictate.

      12.   FIRE SPRINKLERS: Tenant is responsible for the relocation or
            addition of any fire sprinkler heads and drops including the
            adjustment of the height of any sprinkler heads provided by Landlord
            to the extent required in order to maintain a design in conformance
            with NFPA #13 and other applicable codes and requirements of
            Landlord's insurance carrier. All heads and escutcheons shall match
            the type and color provided elsewhere in the facility. Tenant to
            provide special chemical sprinkler systems where operations dictate.

      13.   ELECTRICAL: Provide overhead lighting, special lighting, emergency
            lighting, switches, duplex outlets, horns, strobes, phone outlets,
            and other electrical devices as required by codes and as determined
            by Tenant's space planner. Work shall include all circuitry,
            wiring, conduits, raceways, disconnects and breakers, and
            termination devices extending from panels to equipment and fixtures
            provided.

            a.    CONDUIT AND WIRING: Wire to be copper, minimum #12 THW and
                  enclosed in minimum 1/2" rigid steel conduit. All conduit and
                  wiring to be concealed in walls or ceiling plenums above. MC
                  cabling and wiring or flexible conduit may only be utilized
                  where specifically approved by Landlord. Low voltage,
                  telephone and data wiring shall be plenum rated of the size
                  and type required for the specific application. Category V
                  wire to be provided for all data cabling.

            b.    POWER DISTRIBUTION IN FIXED WALLS:

                  1)    Light switches and outlets to be white colored, 20 amp
                        devices or of any other matching type specifically
                        required.

                  2)    Provide duplex outlets where required or indicated by
                        Tenant's space planner. Outlets for computerized
                        equipment to be on isolated ground circuits. GFI
                        receptacles to be provided in breakrooms and other areas
                        adjacent to water sources.

                  3)    Provide box and conduit extending to ceiling plenum
                        above for required data or telephone outlets.

            c.    WORK STATION DISTRIBUTION SYSTEMS: Provide in-slab and/or
                  overhead electrical power distribution systems to power poles
                  or other designated location to connect to and deliver
                  services to each work station.

                  1)    In-slab distribution shall consist of empty conduit and
                        floor junction boxes or a premanufactured ducted system.
                        Overhead distribution shall consist of a grid of empty
                        conduit and junction boxes mounted to the roof
                        structure. These distribution

<PAGE>   37

                        systems, combined, shall be of sufficient size, spacing
                        and density to serve the initial work stations as well
                        as to provide flexibility for future work station
                        reconfigurations.

                  2)    Cable trays are recommended for data and
                        telecommunication distribution. If not provided, such
                        wiring should be bundled together and hung from the
                        structure in a uniform and well organized manner and
                        shall not be laid loosely in a random alignment on top
                        of ceiling systems. All wiring terminations and
                        equipment to be provided, installed, and paid for by
                        Tenant.

                  3)    Perimeter furred walls, interior partitions and furred
                        columns shall be used to extend conduit feeds and
                        conductors from the overhead grid system to Tenant's
                        work station wire management raceways. Dropped cables
                        not enclosed in walls or power poles are prohibited.

            d.    INTERIOR LIGHTING: General office areas and conference rooms
                  to have 2'-0" x 4'-0" and/or 18-cell deep parabolic light
                  fixtures with T-8 lamps and electronic ballasts. Exit lights
                  to have clear aluminum finish and LED type lettering. Provide
                  recessed fluorescent can lights or other special fixtures
                  selected by Tenant's space planner. Utility rooms, breakrooms,
                  and storage rooms may be furnished with lay-in fixtures with
                  acrylic lenses or surface mounted, acrylic wrapped flourescent
                  fixtures. Provide exit, life-safety and emergency battery-pack
                  lighting as required to meet applicable codes.

            e.    FIRE ALARM: Tenant shall provide a fire alarm system
                  throughout the premises as required by codes including but not
                  limited to local annunciators, strobes, manual pull stations,
                  smoke detectors, controls at dampers and emergency lighting.
                  All devices must match those used elsewhere in the facility
                  must be interconnected with Landlord's master alarm control
                  panel.

            f.    SECURITY: Building security shall consist of rough-in for
                  electrically operated card access devices located at each
                  building main entrance. At Tenant's option main entrance doors
                  may also be provided with a card access lock control mechanism
                  connected with Landlord's building system. All materials must
                  match those used elsewhere within the facility. Additional
                  security systems may be provided by the Tenant at Tenant's
                  option.

            g.    TELEPHONE & DATA: Overhead telephone and data distribution
                  systems shall be provided as indicated above. All other work
                  associated with telecommunications and data services shall be
                  provided, installed, and paid for by Tenant. On-site fiber
                  optic may be utilized by Tenant at Tenant's option. Tenant
                  responsible for contracting with a local telephone dial-tone
                  provider.

            h.    UN-INTERRUPTED POWER SUPPLY: Provide all panels, circuitry,
                  wiring, batteries, switching devices and other items required
                  to provide an uninterrupted power source.

            i.    EMERGENCY GENERATOR: Make connection to emergency panels
                  provided by Landlord as set forth in Section E.5.g. of this
                  Exhibit "C/D". Pay any additional costs to augment or enlarge
                  existing system or for extraordinary use and equipment as
                  described in Exhibit "C".

      14.   GENERAL CONDITIONS: All general conditions as described in Paragraph
            A, relating to Tenant interior finishes shall be included.

      15.   SEISMIC BRACING: All fixtures, equipment, suspended ceiling systems,
            other equipment, and piping supported from the structure above shall
            be seismically braced in accordance with local codes and good
            engineering design.

      16.   OTHER: Any work that is otherwise required to place the Premises in
            a finished occupiable condition shall be provided by Tenant in
            accordance with plans and specifications approved in advance by
            Landlord's architect.

J.    LOCATING THE WORK OF OTHER TENANT'S WITHIN THE PREMISES

      1. LANDLORD'S RIGHT: In addition to any rights that Landlord or other
building occupants might have through the Restrictions, Rules, and Covenants
related to this project, Landlord and other Tenants shall have the right to
locate utility mains and other facilities within the Premises, when such
location is dictated by necessities of engineering design, good practice, and/or
code requirements. These shall be located, wherever possible, in ceiling plenums
and walls or so as to cause the minimum of interference with the Tenant and to
be unobtrusive in appearance, and so as not to materially interfere with
Tenant's business or use of space.

      2. CEILING PLENUMS: This right to locate work within the Premises shall
include the right to locate work in ceiling plenum areas between finished
ceiling and roof or floor deck above, as well as on the roof or under the roof
thereof.

      3. TYPES: Facilities may include, but are not necessarily limited to:
drains, water supply, sewerage lines, refrigerant lines, sprinkler risers,
electric power circuits, telephone circuits, pump stations,

<PAGE>   38

electric panel boards, sanitary vents, air supply, ducts and shafts, exhaust
ducts, and flues servicing other building occupants.

     4. LOCATION: Such areas shall be located adjacent to an interior wall and
shall in no event exceed one (1.0%) percent of the floor area.

<PAGE>   39

                                   EXHIBIT "D"

                                  TENANT'S WORK

The following is a description of the construction, and limitations of same,
which will be provided exclusively by the Tenant unless indicated otherwise
herein. Except as specifically described in Exhibit "C" of this Lease, the
Tenant is responsible for the final design and construction of all interior
improvements within its premises including all architectural, plumbing,
mechanical, electrical, finishes, and furnishings necessary to place the
premises in a complete and occupiable condition in accordance with the
requirements and specifications described herein. Where two types of materials,
structures, or installations are indicated, the option will be the Tenant's.

A.    PLANS AND SPECIFICATIONS

      To be prepared in accordance with the criteria and procedures outlined in
      Exhibit "C" of this Lease. Notwithstanding anything to the contrary
      elsewhere in the Lease, Tenant shall pay the costs of all plan preparation
      and construction documents describing Tenant Finish work. Landlord's
      mechanical and electrical engineers shall be utilized to perform all final
      construction documents describing plumbing, HVAC, and electrical
      installations required.

B.    LANDLORD'S WORK WITHIN THE PREMISES (PAID FOR BY TENANT AS PART OF TENANT
      FINISH)

      1.    PURCHASES BY LANDLORD: Landlord reserves the right to provide
            certain materials and/or improvements on behalf of Tenant where
            deemed prudent by Landlord. Wherever materials and/or improvements
            are provided by Landlord, Tenant will be charged at Landlord's
            actual cost thereof, but may include markup for a ratable share of
            General Conditions and contractor overhead and fee plus five (5%)
            percent for Landlord's overhead.

      2.    SCOPE: Such items of work may include but is not limited to the
            following:

            a.    ENTRANCE DOOR CARD ACCESS: At the election of Tenant, provide
                  card access pad, magnetic lock or electric strike and
                  installation of electronic controls compatible with main
                  building system.

            b.    DOORS: To facilitate timely completion for doors that have
                  special sizes or finishes.

            c.    VAV BOXES: Provide branch takeoff, hot water piping, and box
                  including electrical connection where deemed prudent.

            d.    TEMPERATURE CONTROL: Provide controls compatible with building
                  system including installation and programming.

      3.    TENANT SPACE LAYOUT AND DESIGN: Where requested by tenant only. Rate
            to be 75 cents per sq. ft. Final electrical and mechanical
            engineering to be provided at a competitive rate based on the scope
            and complexity of the installation required.

C.    TENANT'S WORK TO WHICH LANDLORD CONTRIBUTION SHALL NOT BE APPLIED

      1.    SIGNAGE: Suite identification signs and signage within the premises.
            Exterior signs, if permitted.

      2.    SPECIAL MILLWORK: Reception counters and other special purpose work
            stations, counters, and cabinetry.

<PAGE>   40

      3.    FURNITURE SYSTEMS: Landscape office furniture, shelving, desks, and
            other associated accessories, tables, chairs, couches, artwork,
            planters and plants, and other furnishings.

      4.    EQUIPMENT: Office equipment, copy machines, faxes, computers,
            servers, telephone equipment, switch boards, handsets, sound
            systems, security equipment, safes, audio visual equipment, etc.

      5.    OTHER SPECIALTIES: Chalk boards, white boards, tack boards,
            projection screens, movable or operable wall systems, postal
            accessories, etc.

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