Document:

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                                                                   EXHIBIT 10.30

                                  OFFICE LEASE

                                     BETWEEN

                    TRANSWESTERN LEXINGTON, LLC ("LANDLORD")

                                       AND

                           FUTURELINK CORP. ("TENANT")

                          DATE OF LEASE: AUGUST 8, 2000

                  BUILDING: 360 LEXINGTON AVENUE, NEW YORK, NY

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                                TABLE OF CONTENTS

<TABLE>
<C>      <S>                                                                <C>
1.       DEFINITIONS.........................................................1

2.       LEASE GRANT.........................................................4

3.       ADJUSTMENT OF COMMENCEMENT DATE/POSSESSION..........................4

4.       USE.................................................................4

5.       BASE RENT...........................................................5

6.       SECURITY DEPOSIT....................................................6

7.       SERVICES TO BE FURNISHED BY LANDLORD................................7

8.       LEASEHOLD IMPROVEMENTS/TENANT'S PROPERTY............................8

9.       SIGNAGE.............................................................9

10.      REPAIRS AND ALTERATIONS BY TENANT...................................9

11.      USE OF ELECTRICAL SERVICES BY TENANT...............................11

12.      ENTRY BY LANDLORD..................................................11

13.      ASSIGNMENT AND SUBLETTING..........................................12

14.      MECHANIC'S LIENS...................................................13

15.      INSURANCE..........................................................14

16.      INDEMNITY..........................................................15

17.      DAMAGES FROM CERTAIN CAUSES........................................16

18.      CASUALTY DAMAGE....................................................16

19.      CONDEMNATION.......................................................17

20.      HAZARDOUS SUBSTANCES...............................................17

21.      AMERICANS WITH DISABILITIES ACT....................................18

22.      EVENTS OF DEFAULT..................................................18

23.      REMEDIES...........................................................19

24.      NO WAIVER..........................................................23

25.      PEACEFUL ENJOYMENT.................................................23

26.      [RESERVED.]........................................................23

27.      HOLDING OVER.......................................................23

28.      SUBORDINATION TO MORTGAGE/ESTOPPEL CERTIFICATE.....................24

29.      NOTICE.............................................................24

30.      SURRENDER OF PREMISES..............................................25

31.      RIGHTS RESERVED TO LANDLORD........................................25

32.      MISCELLANEOUS......................................................25

33.      ENTIRE AGREEMENT...................................................27

34.      LIMITATION OF LIABILITY............................................28
</TABLE>

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<TABLE>
<C>      <S>                                                               <C>
EXHIBIT A - OUTLINE AND LOCATION OF PREMISES...............................A-1

EXHIBIT B - RULES AND REGULATIONS..........................................B-1

EXHIBIT C - PAYMENT OF TAXES...............................................C-1

EXHIBIT D - WORK LETTER....................................................D-1

EXHIBIT E - COMMENCEMENT LETTER............................................E-1

EXHIBIT F - PORTER'S WAGE PAYMENT..........................................F-1

EXHIBIT G - CLEANING SPECIFICATIONS........................................G-1

EXHIBIT H - CERTIFICATE OF OCCUPANCY.......................................H-1
</TABLE>

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                             OFFICE LEASE AGREEMENT

         This Office Lease Agreement (the "LEASE"), made and entered into on
this the 8th day of August, 2000, between TRANSWESTERN LEXINGTON, LLC, a
Delaware limited liability company ("LANDLORD") and FUTURELINK CORP., a Delaware
corporation ("TENANT").

                              W I T N E S S E T H:
                               - - - - - - - - - -

1. DEFINITIONS. The following are definitions of some of the defined terms used
in this Lease. The definition of other defined terms are found throughout this
Lease.

     A. "ADDITIONAL RENT": shall mean Tenant's Pro Rata Share of Taxes
     (hereinafter defined), the Porter's Wage Payment and any other sums
     (exclusive of Base Rent and the Electric Inclusion Amount) that are
     required to be paid to Landlord by Tenant hereunder, which sums are deemed
     to be Additional Rent under this Lease. Additional Rent and Base Rent
     (including the Electric Inclusion Amount) are sometimes collectively
     referred to herein as "Rent."

     B. The "APPROXIMATE RENTABLE AREA IN THE BUILDING" is 240,977 square feet.
     The Approximate Rentable Area in the Premises as set forth herein may be
     revised at Landlord's election prior to the Commencement Date if Landlord's
     architect determines such estimate to be inaccurate in any material degree
     after examination of the final drawings of the Premises and the Building.

     C. "APPROXIMATE RENTABLE AREA IN THE PREMISES" shall mean the rentable
     square feet of space comprising the Premises. For purposes of the Lease it
     is agreed and stipulated by both Landlord and Tenant that the Approximate
     Rentable Area in the Premises is 14,467 square feet. The amount of any
     space (such amount "RENTABLE AREA") added or deleted from the Premises
     after the date of this Lease shall be determined in Landlord's reasonable
     discretion.

     D. "BASE RENT": Base Rent (which includes the Electric Inclusion Amount
     defined in Section 11) will be paid according to the following schedule,
     subject to the provisions of Section 5 hereof. For the purposes of this
     Section 1.D., "LEASE YEAR" shall mean the twelve (12) month period
     commencing on the Commencement Date, and on each anniversary of the
     Commencement Date.

<TABLE>
<CAPTION>
                      PERIOD                  ANNUAL BASE RENT       MONTHLY INSTALLMENTS
                                                                         OF BASE RENT
          -------------------------------------------------------------------------------
<S>                                              <C>                      <C>
          FIRST LEASE YEAR THROUGH FIFTH         $694,416.00              $57,868.00
           LEASE YEAR
          SIXTH LEASE YEAR THROUGH               $752,284.00              $62,690.33
           TERMINATION DATE
</TABLE>

     The Base Rent due for the first month during the Lease Term (hereinafter
     defined) shall be paid by Tenant to Landlord contemporaneously with
     Tenant's execution hereof.

     E. "BASE YEAR" shall have the meaning given to that term in EXHIBIT C.

     F. "BROKER" shall mean, collectively, Jones Lang LaSalle Americas, Inc. and
     First New York Realty Co.

     G. "BUILDING" shall mean the office building at 360 Lexington Avenue,
     Borough of Manhattan, City and State of New York, currently known as 360
     Lexington Avenue.

     H. "BUILDING MANAGER" shall mean Jones Lang LaSalle Americas, Inc. or such
     other company as Landlord shall designate from time to time.

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     I. "BUILDING STANDARD", shall mean the type, brand, quality and/or quantity
     of materials Landlord designates from time-to-time to be the minimum
     quality and/or quantity to be used in the Building or the exclusive type,
     grade, quality and/or quantity of material to be used in the Building.

     J. "BUSINESS DAY(S)" shall mean Mondays through Fridays exclusive of the
     normal business holidays of New Year's Day, Memorial Day, Independence Day,
     Labor Day, Thanksgiving Day and Christmas Day ("HOLIDAYS"). Landlord, from
     time to time during the Lease Term, shall have the right to designate
     additional Holidays, provided such additional Holidays are commonly
     recognized as holidays by other office buildings in the area where the
     Building is located.

     K. "COMMENCEMENT DATE", "LEASE TERM" and "TERMINATION DATE" shall have the
     meanings set forth below:

          1. The "LEASE TERM" shall mean a period of ten (10) years, three (3)
          months commencing on the date Landlord delivers possession of the
          Premises to Tenant broom clean and free of all tenancies and
          occupancies, together with an ACP-5 certificate, (the "COMMENCEMENT
          DATE") and, unless sooner terminated as provided herein, ending on the
          date which is ten (10) years, three (3) months thereafter (the
          "TERMINATION DATE"). In no event shall the Commencement Date occur
          prior to September 19, 2000. The Commencement Date, Lease Term and
          Termination Date shall be set forth in a Commencement Letter attached
          hereto as EXHIBIT E.

     L. "COMMON AREAS" shall mean those areas located within the Building or on
     the Property used for corridors, elevator foyers, mail rooms, restrooms,
     mechanical rooms, elevator mechanical rooms, property management office,
     janitorial closets, electrical and telephone closets, vending areas, and
     lobby areas (whether at ground level or otherwise), entrances, exits,
     sidewalks, and landscaped areas and other similar facilities provided for
     the common use or benefit of tenants generally.

     M. "DEFAULT RATE" shall mean the lower of (i) the Prime Rate plus two
     percent (2%) or (ii) the Maximum Rate.

     N. "MAXIMUM RATE" shall mean the highest rate of interest from time-to-time
     permitted under applicable federal and state law.

     O. "NORMAL BUSINESS HOURS" for the Building shall mean 8:00 a.m. to 6:00
     p.m. Mondays through Fridays, exclusive of Holidays.

     P. "NOTICE ADDRESSES" shall mean the following addresses for Tenant and
     Landlord, respectively:

     Tenant

     Futurelink Corp.
     360 Lexington Avenue
     New York, New York 10017

     With a copy to:

     Richards & O'Neil, LLP
     885 Third Avenue
     New York, New York  10022
     Attention:  Andrew L. Herz, Esq.

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     Landlord:

     Jones Lang LaSalle Americas, Inc.
     360 Lexington Avenue
     New York, New York  10017
     Attention:  General Manager

     with a copy to:

     Transwestern Investment Company
     150 North Wacker Drive, Suite 800
     Chicago, IL  60606
     Attention:  Owner's Representative

     Payments of Rent only shall be made payable to the order of:

     Transwestern Lexington, L.L.C.

     at the following address:

     P.O. Box 828623
     Philadelphia, PA 19182-8623

     or such other name and address as Landlord shall, from time to time,
     designate in writing.

     Q. "PERMITTED USE" shall mean general executive and administrative office
     use and ancillary related uses but no other use or purpose.

     R. "PORTER'S WAGE PAYMENT" shall mean all payments to be made by Tenant
     pursuant to EXHIBIT E attached hereto.

     S. "PREMISES" shall mean the office space located on the seventh (7th)
     floor within the Building and outlined on EXHIBIT A to this Lease.

     T. "PRIME RATE" shall mean the per annum interest rate announced by and
     quoted in the Wall Street Journal from time-to-time as the prime or base
     rate.

     U. "PROPERTY" shall mean the Building and the parcel(s) of land on which it
     is located.

     V. "SECURITY DEPOSIT" shall mean, subject to the provisions of Section 6,
     the sum of Six Hundred Fifty One Thousand Fifteen Dollars ($651,015.00)
     which may be posted in cash or by delivery of a Letter of Credit as defined
     in Article 6. The Security Deposit shall be paid by Tenant to Landlord
     contemporaneously with Tenant's execution hereof.

     W. "SERVICE AREAS" shall mean those areas within the Building used for
     stairs, elevator shafts, flues, vents, stacks, pipe shafts and other
     vertical penetrations (but shall not include any such areas for the
     exclusive use of a particular tenant).

     X. "TAXES" shall have the meaning given to such term in EXHIBIT C.

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     Y. "TENANT'S PRO RATA SHARE" shall mean six and 3/1000 percent (6.003%)
     which is the quotient (expressed as a percentage), derived by dividing the
     Approximate Rentable Area in the Premises by the Approximate Rentable Area
     in the Building.

     Z. "UNCOMMON IMPROVEMENTS" shall mean internal staircases, raised flooring,
     vaults, executive bath-rooms or any other Leasehold Improvements not
     commonly found in buildouts of commercial office space in midtown
     Manhattan.

2. LEASE GRANT. Subject to and upon the terms herein set forth, Landlord leases
to Tenant and Tenant leases from Landlord the Premises together with the right,
in common with others, to use the Common Areas.

3. ADJUSTMENT OF COMMENCEMENT DATE/POSSESSION.

     A. By taking possession of the Premises, Tenant is deemed to have accepted
     the Premises and agreed that the Premises is in good order and satisfactory
     condition, with no representation or warranty by Landlord as to the
     condition of the Premises or the Building or suitability thereof for
     Tenant's use.

     B. Notwithstanding anything to the contrary contained in this Lease,
     Landlord shall not be obligated to tender possession of any portion of the
     Premises or other space leased by Tenant from time to time hereunder that,
     on the date possession is to be delivered, is occupied by a tenant or other
     occupant or that is subject to the rights of any other tenant or occupant,
     nor shall Landlord have any other obligations to Tenant under this Lease
     with respect to such space until the date Landlord: (1) recaptures such
     space from such existing tenant or occupant; and (2) regains the legal
     right to possession thereof. Tenant expressly waives any right to rescind
     this Lease under Section 223-a of the Real Property Law of the State of New
     York (or any other law of like import, now or hereafter in force) and the
     right to recover any damages resulting from Landlord's failure to deliver
     possession of the Premises on any fixed date for any reason whatsoever. No
     such failure shall affect the validity of this Lease or the obligations of
     Tenant hereunder, be construed to extend the Lease Term or give rise to any
     claim by Tenant for damages or for rescission of this Lease. If Landlord is
     prevented from delivering possession of the Premises to Tenant due to the
     holding over in possession of the Premises by a tenant or other occupant
     thereof, Landlord shall use all commercially reasonable efforts to regain
     possession of the Premises in order to deliver the same to Tenant. If the
     Lease Term is to be determined pursuant to Section 1.K. (1) hereof, the
     Commencement Date shall be postponed until the date Landlord delivers
     possession of the Premises to Tenant, in which event the Termination Date
     shall correspondingly be postponed on a per diem basis. Notwithstanding the
     foregoing, Tenant shall have the right (the "CANCELLATION RIGHT") to cancel
     this Lease in the event that the Premises has not been delivered to Tenant
     on or before December 31, 2000; provided, however, that the Cancellation
     Right must be exercised, if at all, by Tenant giving Landlord written
     notice no later that five (5) days after the Cancellation Right first
     becomes exercisable.

     C. If Tenant takes possession of the Premises prior to the Commencement
     Date, such possession shall be subject to all the terms and conditions of
     the Lease. Notwithstanding the foregoing, if Tenant, with Landlord's prior
     approval, takes possession of the Premises prior to the Commencement Date
     for the sole purpose of performing any Landlord-approved improvements
     therein or installing furniture, equipment or other personal property of
     Tenant, such possession shall be subject to all of the terms and conditions
     of the Lease, except that Tenant shall not be required to pay Rent with
     respect to the period of time prior to the Commencement Date during which
     Tenant performs such work. Tenant shall, however, be liable for the cost of
     any services (e.g. electricity, HVAC, freight elevators) that are provided
     to Tenant or the Premises during the period of Tenant's possession prior to
     the Commencement Date. Nothing herein shall be construed as granting Tenant
     the right to take possession of the Premises prior to the Commencement
     Date, whether for construction, fixturing or any other purpose, without the
     prior consent of Landlord.

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4. USE. The Premises shall be used for the Permitted Use and for no other
purpose. Tenant agrees not to use or permit the use of the Premises for any
purpose which is illegal, dangerous to life, limb or property or which, in
Landlord's reasonable judgement, creates a nuisance or which would increase the
cost of insurance coverage with respect to the Building above that of similar
Manhattan office buildings. Tenant will conduct its business and control its
agents, servants, employees, customers, licensees, and invitees in such a manner
as not to interfere with, annoy or disturb other tenants or Landlord in the
management of the Building and the Property. Tenant will maintain the Premises
in a clean and healthful condition, and comply with all laws, ordinances,
orders, rules and regulations of any governmental entity with reference to the
use, condition, configuration or occupancy of the Premises by Tenant, provided
such compliance does not require structural alterations to the Premises. Tenant,
within ten (10) days after the receipt thereof, shall provide Landlord with
copies of any notices it receives with respect to a violation or alleged
violation of any such laws, ordinances, orders, rules and regulations. Tenant,
at its expense, will comply with the rules and regulations of the Building
attached hereto as EXHIBIT B and such other rules and regulations reasonably
adopted and altered by Landlord from time-to-time (the "Rules and Regulations")
and will cause all of its agents, employees, invitees and visitors to do so. All
such changes to rules and regulations will be reasonable and shall be sent by
Landlord to Tenant in writing. All Rules and Regulations shall be enforced in a
non-discriminatory fashion. In the event of a conflict between the Rules and
Regulations and the Lease, the provisions of the Lease shall govern.

5. BASE RENT.

     A. Tenant covenants and agrees to pay to Landlord during the Lease Term,
     without any setoff or deduction except as otherwise expressly provided
     herein, the full amount of all Base Rent and Additional Rent due hereunder
     and the full amount of all such other sums of money as shall become due
     under this Lease (including, without limitation, any charges for
     replacement of electric lamps and ballasts and any other services, goods or
     materials furnished by Landlord at Tenant's request), all of which
     hereinafter may be collectively called "RENT." The Base Rent and Additional
     Rent for each calendar year or portion thereof during the Lease Term, shall
     be due and payable in advance in monthly installments of the first day of
     each calendar month during the Lease Term and any extensions or renewals
     hereof, and Tenant hereby agrees to pay such Base Rent and Additional Rent
     to Landlord within ten (10) days after demand. If the Lease Term commences
     on a day other than the first day of a month or terminates on a day other
     than the last day of a month, then the installments of Base Rent and
     Additional Rent for such month or months shall be prorated, based on the
     number of days in such month. No payment by Tenant or receipt or acceptance
     by Landlord of a lesser amount than the correct installment of Rent due
     under this Lease shall be deemed to be other than a payment on account of
     the earliest Rent due hereunder, nor shall any endorsement or statement on
     any check or any letter accompanying any check or payment be deemed an
     accord and satisfaction, and Landlord may accept such check or payment
     without prejudice to Landlord's right to recover the balance or pursue any
     other available remedy. The acceptance by Landlord of an installment of
     Rent on a date after the due date of such payment shall not be construed to
     be a waiver of Landlord's right to declare a default for any other late
     payment. All amounts received by Landlord from Tenant hereunder shall be
     applied first to the earliest accrued and unpaid Rent then outstanding.
     Tenant's covenant to pay Rent shall be independent of every other covenant
     set forth in this Lease. Provided that Tenant is not in default hereunder,
     Tenant shall not be obligated to pay Base Rent for the first one (1) month
     and two (2) weeks of the Lease Term (the commencement of which may be
     delayed pursuant to the final sentence of Section 3.B.), or the first (1st)
     month of the second (2nd) Lease Year.

     B. To the extent allowed by law, all installments of Rent not paid when due
     shall bear interest at the Default Rate from the date which is five (5)
     days after the date when due until paid. In addition, if Tenant fails to
     pay any installment of Base Rent and Additional Rent or any other item of
     Rent for five (5) days after the date when due and payable hereunder, a
     "LATE CHARGE" equal to five percent (5%) of such unpaid amount will be due
     and payable immediately by Tenant to Landlord.

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     C. The Additional Rent payable hereunder shall be adjusted from
     time-to-time in accordance with the provisions of EXHIBIT C attached hereto
     and incorporated herein for all purposes.

6. SECURITY DEPOSIT. The Security Deposit shall be held by Landlord and as
security for the performance by Tenant of Tenant's covenants and obligations
under this Lease including but not limited to those set forth in Section 10
hereof, it being expressly understood that the Security Deposit shall not be
considered an advance payment of Rent or a measure of Tenant's liability for
damages in case of default by Tenant. Landlord shall have no fiduciary
responsibilities or trust obligations whatsoever with regard to the Security
Deposit and shall not assume the duties of a trustee for the Security Deposit.
Landlord may, from time-to-time, without prejudice to any other remedy and
without waiving such default, use the Security Deposit to the extent necessary
to cure or attempt to cure, in whole or in part, any default of Tenant
hereunder. Following any such application of the Security Deposit, Tenant shall
pay to Landlord on demand the amount so applied in order to restore the Security
Deposit to its original amount. If Tenant is not in default in the payment of
Rent or Additional Rent and has surrendered possession of the Premises in the
manner required by the terms of this Lease at the termination of this Lease, the
balance of the Security Deposit remaining after any such application shall be
returned by Landlord to Tenant within thirty (30) days thereafter. If Landlord
transfers its interest in the Premises during the term of this Lease, Landlord
shall assign the Security Deposit to the transferee and thereafter shall have no
further liability for the return of such Security Deposit. After such transfer,
Tenant agrees to look solely to such transferee or assignee or successor thereof
for the return of the Security Deposit. Landlord and its successors and assigns
shall not be bound by any actual or attempted assignment or encumbrance of the
Security Deposit by Tenant. Landlord shall not be required to keep the Security
Deposit separate from its other security accounts. Provided in each instance
that Tenant is not in default hereunder, the Security Deposit shall be reduced
to (a) $488,261.25 at any time after the second Lease Year, provided that Tenant
provides Landlord with evidence acceptable to Landlord in its sole discretion,
based on Tenant's audited financial statements, that Tenant has had four (4)
consecutive quarters of positive net revenue profits, and (b) $325,507.50,
provided that Tenant provides Landlord with evidence acceptable to Landlord in
its sole discretion, based on Tenant's audited financial statements, that Tenant
has had eight (8) consecutive quarters of positive net revenue profits. The
Security Deposit shall be held by Landlord in an interest bearing account and,
provided that Tenant is not then in default hereunder beyond the expiration of
applicable grace periods hereunder, the interest accrued thereon less 1% for
Landlord's administrative costs and expenses shall be paid annually to Tenant
within thirty (30) days after the last of each Lease Year during the term
hereof. Landlord shall have no liability with respect to the results of its
investment of the Security Deposit other than for its gross negligence or
willful misconduct with respect thereto. Anything in this Section 6 to the
contrary notwithstanding, Tenant may, at its option and expense, satisfy the
requirement of delivery of the Security Deposit by the delivery to Landlord of
an unconditional and irrevocable letter of credit ("LETTER OF CREDIT") in the
amount of the Security Deposit. The Letter of Credit shall be issued by a bank
reasonably satisfactory to Landlord and located in New York, New York. Tenant
shall ensure that at all times after the execution and delivery of this Lease
until sixty (60) days after the Termination Date, as the same may be extended,
an unexpired Letter of Credit in the applicable amount as set forth above shall
be in the possession of Landlord. The Letter of Credit shall contain a so-called
"evergreen" clause providing that the Letter of Credit shall not be canceled
unless the issuing bank delivers sixty (60) days' prior written notice to
Landlord. Tenant shall deliver to Landlord, no later than thirty (30) days prior
to the expiry date of the then outstanding and expiring Letter of Credit (a) a
replacement Letter of Credit or (b) cash in the amount then required as the
Security Deposit. Landlord shall be entitled to draw on the Letter of Credit (i)
if Tenant fails to deliver any replacement Letter of Credit or pay the amount of
the Security Deposit in cash as required, in which event Landlord shall be
permitted to retain the entire proceeds of such Letter of Credit for application
as the Security Deposit hereunder, (ii) to cure or attempt to cure, in whole or
in part, any default by Tenant under this Lease, in which event Tenant shall
replenish the amount so drawn upon demand by Landlord, and (iii) if the credit
rating of the long-term debt of the issuer of the Letter of Credit (according to
Moody's or similar national rating agency) is downgraded to a grade below
investment rate), or if the issuer of the Letter of Credit shall enter into any
supervisory agreement with any governmental authority, or if the issuer of the
Letter of Credit shall fail to meet any capital requirements imposed by
applicable law, unless Tenant delivers to Landlord a replacement Letter of
Credit complying with the terms of this Lease or cash in the amount required as
the Security Deposit within ten (10) days after demand therefor from Landlord.
Failure by the issuer to honor a draw request on the Letter of Credit shall be a

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<PAGE>   10

default under the terms of this Lease entitling Landlord to exercise its
remedies hereunder. Each Letter of Credit shall be for the benefit of Landlord
and its successors and assigns and shall entitle Landlord or its successors or
assigns to draw from time to time under the Letter of Credit in portions or in
whole upon presentation of a sight draft and statement by Landlord that Landlord
is entitled to draw thereunder pursuant to the terms and provisions of this
Lease. Landlord shall have an unrestricted right to transfer the Letter of
Credit at anytime and to any successor to Landlord. Tenant shall pay any
transfer commission (fee) and all other costs (hereinafter collectively referred
to as the "TRANSFER FEE") which may be imposed by the bank issuing the Letter of
Credit for the transfer of the Letter of Credit by Landlord. The Tenant's
failure to pay the Transfer Fee shall constitute a default of this Lease, and
Landlord shall have the right to pursue any and all remedies provided Landlord
under this Lease, in equity and at law.

7. SERVICES TO BE FURNISHED BY LANDLORD.

     A. Landlord agrees to furnish Tenant the following services:

          1.   Hot and cold water for use in the lavatories on the floor(s) on
               which the Premises is located. If Tenant desires water in the
               Premises for any approved reason, including a private lavatory or
               kitchen, cold water shall be supplied, at Tenant's sole cost and
               expense, from the Building water main through a line and fixtures
               installed at Tenant's sole cost and expense with the prior
               reasonable consent of Landlord. If Tenant desires hot water in
               the Premises, Tenant, at its sole cost and expense and subject to
               the prior reasonable consent of Landlord, may install a hot water
               heater in the Premises. Tenant shall be solely responsible for
               the maintenance and repair of any such water heater.

          2.   Central heat and air conditioning in season during Normal
               Business Hours, at such temperatures and in such amounts as are
               considered by Landlord, in its reasonable judgment, to be
               standard for buildings of similar class, size, age and location,
               or as required by governmental authority. In the event that
               Tenant requires central heat, ventilation or air conditioning
               service at times other than Normal Business Hours, such
               additional service shall be furnished only upon the written
               request of Tenant delivered to Landlord prior to 3:00 p.m. at
               least one Business Day in advance of the date for which such
               usage is requested. Tenant shall bear the entire cost of
               additional service as such costs are reasonably determined by
               Landlord from time-to-time, as Additional Rent upon presentation
               of a statement therefor by Landlord at the rates charged to other
               tenants; as of the date of this Lease, such charges are $375 per
               hour. All additional heating, ventilating and air conditioning
               required (if any) to accommodate Tenant's design shall be
               installed at the Tenant's expense subject to Landlord's prior
               written approval. The cost of operation and maintenance of the
               equipment shall be the responsibility of Tenant and paid to
               Landlord as Additional Rent.

          3.   Maintenance and repair of all Common Areas in the manner and to
               the extent reasonably deemed by Landlord to be standard for
               buildings of similar class, age and location.

          4.   Janitorial and cleaning service in and about the Premises
               (including, without limitation, the bathrooms in the Premises) on
               Business Days in accordance with the specifications attached
               hereto as Exhibit G; provided, however, if Tenant's floor
               covering or other improvements require special treatment, Tenant
               shall pay the additional cleaning cost attributable thereto as
               Additional Rent upon presentation of a statement therefor by
               Landlord. Tenant shall not provide or use any other janitorial or
               cleaning services without Landlord's consent, and then only
               subject to the supervision of Landlord and at Tenant's sole cost
               and responsibility and by a janitor, cleaning contractor or
               employees at all times

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<PAGE>   11

               reasonably satisfactory to Landlord which approval shall not be
               unreasonably withheld or delayed.

          5.   Electricity to the Premises for general office use, in accordance
               with and subject to the terms and conditions of Section 11 of
               this Lease.

          6.   Fluorescent and incandescent bulb and ballast replacement in the
               Common Areas and Service Areas, but Tenant shall be responsible
               at its sole cost and expense for fluorescent bulb replacement in
               the Premises as necessary to maintain the lighting at building
               standard as established by Landlord.

          7.   Passenger elevator service in common with Landlord and other
               persons and freight elevator service in common with the Landlord
               and other persons during Normal Business Hours. Landlord,
               however, shall provide limited passenger elevator service daily
               at all times when normal passenger elevator service is not
               provided.

          8.   Subject to the terms of this Lease, Tenant shall be entitled
               access to the Premises 365 days per year, 7 days per week and 24
               hours per day. Access control to the Building during other than
               Normal Business Hours shall be provided in such form as Landlord
               reasonably deems appropriate. Tenant shall have access to the
               Building by means of card keys after Normal Business Hours.
               Tenant shall cooperate fully in Landlord's efforts to maintain
               access control to the Building and shall follow all regulations
               reasonably promulgated by Landlord with respect thereto.
               Notwithstanding anything herein to the contrary Tenant expressly
               acknowledges and agrees that Landlord is not warranting the
               efficacy of any access personnel, service, procedures or
               equipment and that Tenant is not relying and shall not hereafter
               rely on any such personnel service, procedures or equipment.
               Landlord shall not be responsible or liable in any manner for
               failure of any access personnel, services, procedures or
               equipment to prevent, control, or apprehend anyone suspected of
               causing personal injury or damage in, on or around the Project.

          9.   Landlord shall, at its expense, provide life safety service
               through the Building's Class E System to the points of connection
               on the floor of the Premises which shall provide such service to
               the Premises. Landlord shall provide Tenant with sufficient
               capability to connect Tenant's strobes, speakers and other
               related life safety equipment to the Building's Class E System as
               required for Tenant to comply with law.

     B. If Tenant requests any other utilities or building services in addition
     to those identified above, or any of the above utilities or building
     services in frequency, scope, quality or quantities substantially greater
     than the standards set by Landlord for the Building, then Landlord shall
     use reasonable efforts to attempt to furnish Tenant with such additional
     utilities or building services. Landlord may impose a reasonable charge for
     such additional utilities or building services, which shall be paid monthly
     by Tenant as Additional Rent on the same day that the monthly installment
     of Base Rent is due.

     C. Except as otherwise expressly provided herein, the failure by Landlord
     to any extent to furnish, or the interruption or termination of these
     defined services in whole or in part, resulting from adherence to laws,
     regulations and administrative orders, wear, use, repairs, improvements
     alterations or any causes beyond the reasonable control of Landlord shall
     not render Landlord liable in any respect, nor relieve Tenant from the
     obligation to fulfill any covenant or agreement hereof. Should any of the
     equipment or machinery used in the provision of such services for any cause
     cease to function properly, Landlord shall use reasonable diligence to
     repair such equipment or machinery.

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<PAGE>   12

8. LEASEHOLD IMPROVEMENTS/TENANT'S PROPERTY. All fixtures, equipment,
improvements and appurtenances attached to, or built into, the Premises at the
commencement of or during the Lease Term, whether or not by, or at the expense
of, Tenant ("LEASEHOLD IMPROVEMENTS"), shall be and remain a part of the
Premises; shall be the property of Landlord; and shall not be removed by Tenant
except as expressly provided herein. All unattached and moveable partitions,
trade fixtures, moveable equipment or furniture located in the Premises and
acquired by or for the account of Tenant, without expense to Landlord, which can
be removed without structural damage to the Building or Premises, and all
personalty brought into the Premises by Tenant ("TENANT'S PROPERTY") shall be
owned and insured by Tenant. Landlord may, nonetheless, at any time prior to, or
within one (1) month after, the expiration or earlier termination of this Lease
or Tenant's right to possession, require Tenant upon ninety (90) days' prior
notice to remove any Uncommon Improvements performed by or for the benefit of
Tenant and all electronic, phone and data cabling as are designated by Landlord
(the "REQUIRED REMOVABLES") at Tenant's sole cost. In the event that Landlord so
elects, Tenant shall remove such Required Removables within thirty (30) days
after notice from Landlord, provided that in no event shall Tenant be required
to remove such Required Removables prior to the expiration or earlier
termination of this Lease or Tenant's right to possession. In addition to
Tenant's obligation to remove the Required Removables, Tenant shall repair any
damage caused by such removal and perform such other work as is reasonably
necessary to restore the Premises. If Tenant fails to remove any specified
Required Removables or to perform any required repairs and restoration within
the time period specified above, Landlord, at Tenant's sole cost and expense,
may remove the Required Removables (and repair any damage occasioned thereby)
and dispose thereof or deliver the Required Removables to any other place of
business of Tenant, or warehouse the same, and Tenant shall pay the reasonable
cost of such removal, repair, delivery, or warehousing of the Required
Removables within five (5) days after demand from Landlord. Notwithstanding the
foregoing, Tenant may request in writing at the time it submits its plans and
specifications for an alteration, addition or improvement, that Landlord advise
Tenant whether Landlord will require Tenant to remove, at the termination of
this Lease or the termination of Tenant's right to possession hereunder, such
alteration, addition or improvement, or any particular portion thereof; and
Landlord shall advise Tenant within twenty (20) days after receipt of Tenant's
request as to whether Landlord will require removal of such alteration, addition
or improvement.

9. SIGNAGE. Landlord shall provide and install, at Tenant's cost, all letters or
numerals on the exterior of the Premises; all such letters and numerals shall be
in the standard graphics for the Building and no others shall be used or
permitted on the Premises without Landlord's prior written consent. In addition,
Landlord will list Tenant's name and those of its permitted subtenants or
assignees in the Building's directory, if any, located in the lobby of the
Building. Tenant shall be entitled to use its proportionate share of spaces in
the Building's directory located in the lobby of the Building to identify
Tenant's name and the names of Tenant's employees. Landlord shall make such
subsequent additions and deletions as Tenant requests in and to the initial
listing after the Commencement Date, provided Tenant shall pay Landlord
Landlord's reasonable charge for such additions and deletions. Tenant shall have
the right to install, at Tenant's cost, its own signage and logo on the floor of
the Building where the Premises is located, which signage (and the placement
thereof) shall be subject to Landlord's reasonable approval.

10. REPAIRS AND ALTERATIONS BY TENANT.

     A. Except to the extent such obligations are imposed upon Landlord
     hereunder, Tenant shall, at its sole cost and expense, maintain the
     Premises in good order, condition and repair throughout the entire Lease
     Term, ordinary wear and tear excepted. Tenant agrees to keep the areas
     visible from outside the Premises in a neat, clean and attractive condition
     at all times. Tenant shall be responsible for all repairs replacements and
     alterations in and to the Premises, Building and Property and the
     facilities and systems thereof, the need for which arises out of (1)
     Tenant's particular use or occupancy of the Premises (provided such
     repairs, replacements and alterations do not require structural alterations
     to the Premises), (2) the installation, removal, use or operation of
     Tenant's Property (as defined in Section 8. above), (3) the moving of
     Tenant's Property into or out of the Building, or (4) the act, omission,
     misuse or negligence of Tenant, its agents, contractors, employees or
     invitees. All such repairs, replacements or alterations shall be performed
     in accordance with Section 10.B. below and the rules, policies and
     procedures reasonably enacted by Landlord from time to time for the
     performance of work in the Building. If

                                       9
<PAGE>   13

     Tenant fails to maintain the Premises in good order, condition and repair,
     Landlord shall give Tenant notice to perform such acts as are reasonably
     required to so maintain the Premises. If Tenant fails to promptly commence
     such work and diligently pursue it to its completion, then Landlord may, at
     is option, make such repairs, and Tenant shall pay the reasonable cost
     thereof to Landlord upon ten (10) days' prior notice as Additional Rent,
     together with an administration charge in an amount equal to ten percent
     (10%) of the cost of such repairs. Landlord shall, at its expense keep and
     maintain in good repair and working order and make all repairs to and
     perform necessary maintenance upon: (a) all structural elements of the
     Building; and (b) all mechanical, electrical and plumbing systems that
     serve the Building in general or portions of the Building outside of the
     Premises; and (c) the Building facilities common to all tenants including
     but not limited to, the ceilings, walls and floors in the Common Areas.

     B. Tenant shall not make or allow to be made any alterations, additions or
     improvements to the Premises, without first obtaining the written consent
     of Landlord in each such instance, which consent may be refused or given on
     such conditions as Landlord may elect. Landlord agrees not to withhold or
     delay its consent unreasonably to any alterations, additions or
     improvements by Tenant which (i) do not affect base building systems or the
     structure of the Building, (ii) are not visible from the outside the
     Premises, and (iii) which would not materially detract from the aesthetic
     integrity of the Building or its design. Landlord shall not be deemed to
     have acted unreasonably if it withholds its consent because, in Landlord's
     opinion, such work: could affect the safety of the Building or its
     occupants; would increase Landlord's cost of repairs, insurance or
     furnishing services or otherwise adversely Landlord's ability to
     efficiently operate the Building or furnish services to Tenant or other
     tenants; involves toxic or hazardous materials; could be costly or
     hazardous to remove or demolish; requires entry into another tenant's
     premises or use of public areas; or is prohibited by any mortgage on the
     Building. The foregoing reasons, however, shall not be exclusive of the
     reasons for which Landlord may withhold consent, whether or not such other
     reasons are similar or dissimilar to the foregoing. Specific consent from
     Landlord shall not be required for work not costing more than $20,000 for
     each project and consisting solely of painting, wall covering and carpeting
     or similar decorating work or furnishings (so long as such work does not
     involve hazardous materials, and does not fall within category (i) or (ii)
     above) and Tenant may perform such work, so long as Tenant informs Landlord
     in reasonable detail of the nature of the work, and otherwise complies with
     the provisions of this Section 10. Prior to commencing any such work and as
     a condition to obtaining Landlord's consent, Tenant must furnish Landlord
     with plans and specifications acceptable to Landlord; names and addresses
     of contractors reasonably acceptable to Landlord; copies of contracts;
     necessary permits and approvals; evidence of contractor's and
     subcontractor's insurance in accordance with Section 15 hereof; and a
     payment bond or other security, all in form and amount satisfactory to
     Landlord. Tenant shall be responsible for insuring that all such persons
     procure and maintain insurance coverage against such risks, in such amounts
     and with such companies as Landlord may reasonably require, including, but
     not limited to, Builder's Risk and Worker's Compensation insurance. All
     such improvements, alterations or additions shall be constructed in a good
     and workerlike manner using Building Standard materials or other new
     materials of equal or greater quality. Landlord, to the extent reasonably
     necessary to avoid any disruption to the tenants and occupants of the
     Building, shall have the right to reasonably designate the time when any
     such alterations, additions and improvements may be performed and to
     otherwise designate reasonable rules, regulations and procedures for the
     performance of work in the Building. Upon completion, Tenant shall furnish
     "as-built" plans, contractor's affidavits and full and final waivers of
     lien and receipted bills covering all labor and materials. All
     improvements, alterations and additions shall comply with the insurance
     requirements, codes, ordinances, laws and regulations, including without
     limitation, the Americans with Disabilities Act. Tenant shall reimburse
     Landlord upon ten (10) days' prior notice for all reasonable sums, if any,
     expended by Landlord for third party examination of the architectural,
     mechanical, electrical and plumbing plans for any alterations, additions or
     improvements. In addition, if Landlord so requests, Landlord shall be
     entitled to oversee the construction of any alterations, additions or
     improvements that may affect the structure of the Building or any of the
     mechanical, electrical, plumbing or life safety systems of the Building. In
     the event Landlord elects to oversee such work, Landlord shall be entitled
     to receive

                                       10
<PAGE>   14

     a fee for such oversight in an amount equal to ten percent (10%) of the
     portion of the cost of such alterations, additions or improvements which
     needs to be so overseen. Landlord's approval of Tenant's plans and
     specifications for any work performed for or on behalf of Tenant shall not
     be deemed to be representation by Landlord that such plans and
     specifications comply with applicable insurance requirements, building
     codes, ordinances, laws or regulations or that the alterations, additions
     and improvements constructed in accordance with such plans and
     specifications will be adequate for Tenant's use.

11. USE OF ELECTRICAL SERVICES BY TENANT.

     A. All electricity used by Tenant in the Premises shall be paid for by
     Tenant through inclusion in Base Rent of an amount equal to $3.00 per
     rentable square foot of the Premises per annum (the "ELECTRIC INCLUSION
     AMOUNT"). Landlord shall have the right at any time and from time-to-time
     during the Lease Term to contract for electricity service from such
     providers of such services as Landlord shall elect (each being an "ELECTRIC
     SERVICE PROVIDER"). Tenant shall cooperate with Landlord, and the
     applicable Electric Service Provider, at all times and, as reasonably
     necessary, shall allow Landlord and such Electric Service Provider
     reasonable access to the Building's electric lines, feeders, risers,
     wiring, and any other machinery within the Premises. Landlord shall in no
     way be liable or responsible for any loss, damage, or expense that Tenant
     may sustain or incur by reason of any change, failure, interference,
     disruption, or defect in the supply or character of the electric energy
     furnished to the Premises, or if the quantity or character of the electric
     energy supplied by the Electric Service Provider is no longer available or
     suitable for Tenant's requirements unless caused by Landlord's gross
     negligence, and no such change, failure, defect, unavailability, or
     unsuitability shall constitute an actual or constructive eviction, in whole
     or in part, or entitle Tenant to any abatement or diminution of rent, or
     relieve Tenant from any of its obligations under the Lease. Tenant shall be
     responsible for providing all light bulbs to the Premises at Tenant's sole
     cost and expense.

     B. Tenant's use of electrical services furnished by Landlord shall not
     exceed in voltage, rated capacity, or overall load that which is standard
     for the Building. In the event Tenant shall request that it be allowed to
     consume electrical services in excess of the available capacity, Landlord
     may refuse to consent to such usage or may consent upon such conditions as
     Landlord reasonably elects (including the installation of utility service
     upgrades, submeters, air handlers or cooling units), and all such
     additional usage (to the extent permitted by law), installation and
     maintenance thereof shall be paid for by Tenant as Additional Rent.
     Landlord, at any time during the Lease Term, shall have the right to
     measure Tenant's electrical usage by survey or any other method that
     Landlord, in its reasonable judgment, deems appropriate and, if the results
     of such survey or other method indicate that Tenant's electrical
     consumption exceeds the Building Standard, Landlord shall equitably
     increase the Electric Inclusion Amount to compensate Landlord for such
     additional usage by Tenant based on the results of such survey or other
     method. In the event Tenant disputes the results of Landlord's survey,
     Landlord shall appoint an engineer reasonably acceptable to Tenant to
     review such survey and resolve the dispute. The engineer's determination
     shall be binding on Landlord and Tenant, and Tenant shall be responsible
     for such engineer's fees.

12. ENTRY BY LANDLORD. Tenant shall permit Landlord or its agents or
representatives to enter into and upon any part of the Premises to inspect the
same, or to show the Premises to prospective purchasers, mortgagees, tenants
(during the last (12) twelve months of the Lease Term or earlier in connection
with a potential relocation) or insurers, or to clean or make repairs,
alterations, or additions thereto, including any work that Landlord deems
necessary for the safety, protection or preservation of the Building or any
occupants thereof, or to facilitate repairs, alterations or additions to the
Building or any other tenant's premises. Except for any entry by Landlord in an
emergency situation or to provide normal cleaning and janitorial service,
Landlord shall provide Tenant with reasonable prior notice of any entry into the
Premises, which notice may be given verbally and such entry shall be during
Normal Business Hours (except in the event of an emergency). Landlord shall have
the right to temporarily close the Premises or the Building to perform repairs,
alterations or additions in the Premises or the Building, provided that

                                       11
<PAGE>   15

Landlord shall use reasonable efforts to perform all such work on weekends and
after Normal Business Hours and to otherwise minimize interference with the
operation of Tenant's business in the Premises. Entry by Landlord hereunder
shall not constitute a constructive eviction or entitle Tenant to any abatement
or reduction of Rent by reason thereof.

13. ASSIGNMENT AND SUBLETTING.

     A. Except in connection with a Permitted Transfer (defined in Section 13.E.
     below), Tenant shall not assign, sublease, transfer or encumber any
     interest in this Lease or allow any third party to use any portion of the
     Premises (collectively or individually, a "TRANSFER") without the prior
     written consent of Landlord, which consent shall not be unreasonably
     withheld. Without limitation, it is agreed that Landlord's consent shall
     not be considered unreasonably withheld if: (1) the proposed transferee's
     financial condition does not meet the criteria Landlord uses to select
     Building tenants having similar leasehold obligations; (2) the proposed
     transferee's business is not suitable for the Building considering the
     business of the other tenants and the Building's prestige, or would result
     in a violation of another tenant's rights; (3) the proposed transferee is a
     governmental agency or occupant of the Building; (4) Tenant is in default
     beyond any applicable notice and cure period; (5) any portion of the
     Building or the Premises would likely become subject to additional or
     different laws as a consequence of the proposed Transfer; (6) the proposed
     transferee, or any person or entity who directly or indirectly, controls,
     or is controlled by, or is under common control with, the proposed
     transferee, is an occupant of any part of the Building at the time Tenant
     requests such consent if Landlord has comparable space for lease in the
     Building for a comparable term; (7) the proposed transferee has negotiated
     with Landlord to lease space in the Building within five (5) months prior
     to the time Tenant requests such consent if Landlord has comparable space
     for lease in the Building for a comparable term; or (8) Tenant has
     advertised such space without obtaining Landlord's prior consent (which may
     be withheld in Landlord's sole discretion) to the form and substance of
     such advertisement. Notwithstanding the foregoing, Tenant shall designate
     Landlord's exclusive leasing agent (the "AGENT") as Tenant's exclusive
     agent for a period of forty-five (45) days to effect any such Transfer, and
     upon the execution of any surrender, sublease or assignment, Tenant shall
     pay the Agent a commission at the Agent's then current commission rates.
     Any attempted Transfer in violation of this Section 13, shall, exercisable
     in Landlord's sole and absolute discretion, be voidable. Consent by
     Landlord to one or more Transfer(s) shall not operate as a waiver of
     Landlord's rights to approve any subsequent Transfer(s). IN NO EVENT SHALL
     ANY TRANSFER OR PERMITTED TRANSFER RELEASE OR RELIEVE TENANT FROM ANY
     OBLIGATION UNDER THIS LEASE OR ANY LIABILITY HEREUNDER.

     B. If Tenant requests Landlord's consent to a Transfer, Tenant shall submit
     to Landlord financial statements for the proposed transferee, a complete
     copy of the proposed assignment, sublease and other information as Landlord
     may reasonably request. Landlord shall within thirty (30) days after
     Landlord's receipt of the required information and documentation either:
     (1) consent or reasonably refuse consent to the Transfer in writing; (2) in
     the event of a proposed assignment of this Lease or a proposed sublease of
     the entire Premises for the entire remaining term of this Lease (for
     purposes of this Section 13.B., "the entire Premises" shall mean eighty
     percent (80%) or more of the Premises and "the entire remaining term" shall
     mean a term which extends beyond the final twelve (12) months of the Lease
     Term), terminate this Lease effective the date that the proposed Transfer
     would have come into effect. If Landlord shall fail to notify Tenant in
     writing of its decision within such thirty (30) days period after the later
     of the date Landlord is notified in writing of the proposed Transfer or the
     date Landlord has received all required information concerning the proposed
     transferee and the proposed Transfer, Landlord shall be deemed to have
     consented to such Transfer, and to have elected to keep this Lease in full
     force and effect. Tenant shall pay Landlord a review fee of $1,000.00 for
     Landlord's review of any requested Transfer (but not in connection with a
     Permitted Transfer). In addition, Tenant shall reimburse Landlord for its
     actual reasonable costs and expenses (including without limitation
     reasonable attorney's fees) incurred by Landlord in connection with
     Landlord's review of such requested Transfer or Permitted Transfer.

                                       12
<PAGE>   16

     C. Other than in the case of a Permitted Transfer, Tenant shall pay to
     Landlord fifty percent (50%) of all cash and other consideration which
     Tenant receives as a result of a Transfer that is in excess of the rent
     payable to Landlord hereunder for the portion of the Premises and Term
     covered by the Transfer within twenty (20) days following receipt thereof
     by Tenant less expenses incurred by Tenant for advertising, commissions,
     attorneys' fees, construction and free rent. If Tenant is in Monetary
     Default (defined in Section 22 below), Landlord may require that all
     sublease payments be made directly to Landlord, in which case Tenant shall
     receive a credit against rent in the amount of any payments received (less
     Landlord's share of any excess).

     D. Except as provided below with respect to a Permitted Transfer, if Tenant
     is a corporation, limited liability company, partnership or similar entity,
     and the entity which owns or controls a majority of the voting
     shares/rights at the time changes for any reason (including but not limited
     to a merger, consolidation or reorganization), such change of ownership or
     control shall constitute a Transfer. The foregoing shall not apply so long
     as Tenant is an entity whose outstanding stock is listed on a nationally
     recognized security exchange, or if at least fifty percent (50%) of its
     voting stock is owned by another entity, the voting stock of which is so
     listed.

     E. Tenant may assign its entire interest under this Lease or sublet all or
     a portion of the Premises to any entity controlling or controlled by or
     under common control with Tenant or to any successor to Tenant by purchase,
     merger, consolidation or reorganization (hereinafter, collectively,
     referred to as "PERMITTED TRANSFER") without the consent of Landlord,
     provided: (1) Tenant is not in default under this Lease beyond applicable
     notice and cure periods; (2) if such proposed transferee is a successor to
     Tenant by purchase, said proposed transferee shall acquire all or
     substantially all of the stock or assets of Tenant's business or, if such
     proposed transferee shall acquire all or substantially all of the stock or
     assets of Tenant's business or, if such proposed transferee is a successor
     to Tenant by merger, consolidation or reorganization, the continuing or
     surviving corporation shall own all or substantially all of the assets of
     Tenant; (3) such proposed transferee shall have a net worth which is at
     least equal to the Tenant's net worth as of the day prior to the proposed
     purchase, merger, consolidation or reorganization as evidenced to
     Landlord's reasonable satisfaction; (4) such proposed transferee operates
     their business in the Premises for the Permitted Use and no other purpose;
     and (5) Tenant shall give Landlord written notice at least fifteen (15)
     days prior to the effective date of the proposed purchase, merger,
     consolidation or reorganization.

     F. Tenant agrees that in the event Landlord withholds its consent to any
     Transfer contrary to the provisions of this Section 13, Tenant's sole
     remedy shall be to seek an injunction in equity or compel performance by
     Landlord to give its consent and Tenant expressly waives any right to
     damages in the event of such withholding by Landlord of its consent.

     G. In the event that Tenant desires to enter into one (1) sublease for up
     to 5,000 rentable square feet of the Premises during the first two (2)
     years of the Term (an "EXPEDITED SUBLEASE"), the following shall apply: (1)
     Tenant shall submit to Landlord a copy of the proposed business terms of
     the proposed sublease, in lieu of a complete copy of the proposed sublease
     as required pursuant to the first sentence of Section 13.B.; (2) Landlord
     shall grant or deny its consent to the proposed sublease within fifteen
     (15) Business Days instead of the thirty (30) days required in the second
     sentence of Section 13.B; and (3) Tenant shall reimburse Landlord for its
     actual, out of pocket costs instead of the $1,000 review fee referenced in
     the penultimate sentence of Section 13.B. Notwithstanding the foregoing,
     all of the other provisions of this Section 13 not specifically modified
     above shall apply to such Expedited Sublease.

14. MECHANIC'S LIENS. Tenant will not permit any mechanic's liens or other liens
to be placed upon the Premises, the Building, or the Property and nothing in
this Lease shall be deemed or construed in any way as constituting the consent
or request of Landlord, express or implied, by inference or otherwise, to any
person for the performance of any labor or the furnishing of any materials to
the Premises, the Building, or the Property or any part thereof, nor as giving
Tenant any right, power, or authority to contract for or permit the rendering of
any services or the furnishing of any materials that would give rise to any

                                       13
<PAGE>   17

mechanic's or other liens against the Premises, the Building, or the Property.
In the event any such lien is attached to the Premises, the Building, or the
Property, then, in addition to any other right or remedy of Landlord, Landlord
may, upon twenty (20) days' notice to Tenant, but shall not be obligated to,
discharge the same. Any amount paid by Landlord for any of the aforesaid
purposes including, but not limited to, reasonable attorneys' fees, shall be
paid by Tenant to Landlord promptly on demand as Additional Rent. Tenant shall
within ten (10) Business Days of receiving such notice of lien or claim (a) have
such lien or claim released or (b) deliver to Landlord a bond in form, content,
amount and issued by surety, reasonably satisfactory to Landlord, indemnifying,
protecting, defending and holding harmless the Indemnities against all costs and
liabilities resulting from such lien or claim and the foreclosure or attempted
foreclosure thereof. Tenant's failure to comply with the provisions of the
foregoing sentence shall be deemed an Event of Default under Section 22 hereof
entitling Landlord to exercise all of its remedies therefor without the
requirement of any additional notice or cure period.

15. INSURANCE.

     A. Landlord shall maintain such insurance on the Building and the Premises
     (other than on Tenant's Property or any additional improvements constructed
     in the Premises by Tenant), and such liability insurance in such amounts as
     Landlord elects provided the same is not less than that maintained by
     prudent landlords of similar buildings. Payments for losses under such
     insurance shall be made solely to Landlord or the mortgagees of Landlord as
     their interests shall appear.

     B. Tenant shall maintain at its expense, (1) in an amount equal to full
     replacement cost, special form (formerly known as all risk) property
     insurance on all of its personal property, including removable trade
     fixtures and leasehold and tenant improvements, and Tenant's Property
     located in the Premises and in such additional amounts as are required to
     meet Tenant's obligations pursuant to Section 18 hereof and with
     deductibles in an amount reasonably satisfactory to Landlord, and (ii) a
     policy or policies of commercial general liability insurance (including
     endorsement or separate policy for owned or non-owned automobile liability)
     with respect to its activities in the Building and on the Property, with
     the premiums thereon fully paid on or before the due date, in an amount of
     not less than $2,000,000 per occurrence per person coverage for bodily
     injury, property damage, personal injury or combination thereof (the term
     "personal injury" as used herein means, without limitation, false arrest,
     detention or imprisonment, malicious prosecution, wrongful entry, liable
     and slander), provided that if only single limit coverage is available it
     shall be for at least $2,000,000 per occurrence with an umbrella policy of
     at least $5,000,000 combined single limit per occurrence. Tenant's
     insurance policies shall name Landlord and Building Manager as additional
     insureds and shall include coverage for the contractual liability of Tenant
     to indemnify Landlord and Building Manager pursuant to Section 16 of this
     Lease and shall have deductibles in an amount reasonably satisfactory to
     Landlord. Prior to Tenant's taking possession of the Premises, Tenant shall
     furnish evidence reasonably satisfactory to Landlord of the maintenance and
     timely renewal of such insurance, and Tenant shall obtain and deliver to
     Landlord a written obligation on the part of each insurer to notify
     Landlord at least thirty (30) days prior to the modification, cancellation
     or expiration of such insurance policies. In the event Tenant shall not
     have delivered to Landlord a policy or certificate evidencing such
     insurance at least thirty (30) days prior to the expiration date of each
     expiring policy, Landlord shall notify Tenant and if Tenant does not
     provide evidence of coverage within ten (10) days thereafter, Landlord may
     obtain such insurance as Landlord may reasonably require to protect
     Landlord's interest (which obtaining of insurance shall not be deemed to be
     a waiver of Tenant's default hereunder). The cost to Landlord of obtaining
     such policies, plus an administrative fee in the amount of six percent (6%)
     of the cost of such policies shall be paid by Tenant to Landlord as
     Additional Rent upon demand.

     C. The insurance requirements set forth in this Section 15 are independent
     of the waiver, indemnification, and other obligations under this Lease and
     will not be construed or interpreted in any way to restrict, limit or
     modify the waiver, indemnification and other obligations or to in any way
     limit any party's liability under this Lease. In addition to the
     requirements set forth in Sections 15 and 16 hereof, the insurance required
     of Tenant under this Lease must be issued by an

                                       14
<PAGE>   18

     insurance company with a rating of no less than B+ in the current Best's
     Insurance Guide, or A- in the current Standard & Poor Insurance Solvency
     Review, or in that is otherwise acceptable to Landlord, and admitted to
     engage in the business of insurance in the state in which the Building is
     located; be primary insurance for all claims under it and provide that any
     insurance carried by Landlord and Landlord's lenders is strictly excess,
     secondary and noncontributing with any insurance carried by Tenant; and
     provide that insurance may not be cancelled, nonrenewed or the subject of
     material change in coverage of available limits of coverage, except upon
     thirty (30) days prior written notice to Landlord and Landlord's lenders
     (whose names and addresses have been provided to Tenant). Tenant will
     deliver either a duplicate original or a legally enforceable certificate of
     insurance on all policies procured by Tenant in compliance with Tenant's
     obligations under this Lease, together with evidence reasonably
     satisfactory to Landlord of the payment of the premiums therefor, to
     Landlord on or before the date Tenant first occupies any portion of the
     Premises, at least thirty (30) days before the expiration date of any
     policy and upon the renewal of any policy. Landlord must give its prior
     written approval to all deductibles and self-insured retentions under
     Tenant's policies. Tenant may comply with its insurance coverage
     requirements through a blanket policy, provided Tenant, at Tenant's sole
     expense, procures a "per location" endorsement, or equivalent reasonably
     acceptable to Landlord, so that the general aggregate and other limits
     apply separately and specifically to the Premises.

     D. If Tenant's business operations, conduct or use of the Premises or any
     other part of the Property causes an increase in the premium for any
     insurance policy carried by Landlord, Tenant will, within twenty (20) days
     after receipt of notice from Landlord, reimburse Landlord for the entire
     increase.

     E. Neither Landlord nor Tenant shall be liable (by way of subrogation or
     otherwise) to the other party (or to any insurance company insuring the
     other party) for any personal injury or loss or damage to any of the
     property of Landlord or Tenant, as the case may be, with respect to their
     respective property, the Building, the Property or the Premises or any
     addition or improvements thereto, or any contents therein, to the extent
     covered by insurance carried or required to be carried by a party hereto
     even though such loss might have been occasioned by the negligence or
     willful acts or omissions of the Landlord or Tenant or their respective
     employees, agents, contractors or invitees. Since this mutual waiver will
     preclude the assignment of any such claim by subrogation (or otherwise) to
     an insurance company (or any other person), Landlord and Tenant each agree
     to give each insurance company which has issued, or on the future may
     issue, policies of insurance, with respect to the items covered by this
     waiver, written notice of the terms of this mutual waiver, and to have such
     insurance policies properly endorsed, if necessary, to prevent the
     invalidation of any of the coverage provided by such insurance policies by
     reason of such mutual waiver. For the purpose of the foregoing waiver, the
     amount of any deductible applicable to any loss or damage shall be deemed
     covered by, and recoverable by the insured under the insurance policy to
     which such deductible relates. In the event that Tenant is permitted to and
     self-insures any risk for which insurance is required to be carried under
     this Lease, or if Tenant fails to carry any insurance required to be
     carried by Tenant pursuant to this Lease, then all loss or damage to
     Tenant, its leasehold interest, its business, its property, the Premises or
     any additions or improvements thereto or contents thereof shall be deemed
     covered by and recoverable by Tenant under valid and collectible policies
     of insurance. Notwithstanding anything to the contrary herein, Landlord
     shall not be liable to the Tenant or any insurance company (by way of
     subrogation or otherwise) insuring the Tenant for any loss or damage to any
     property, or bodily injury or personal injury or any resulting loss of
     income or losses from worker's compensation laws and benefits, even though
     such loss or damage might have been occasioned by the negligence of
     Landlord, its agents or employees, or Building Manager, if any such loss or
     damage was required to be covered by insurance pursuant to this Lease.

16. INDEMNITY. To the extent not expressly prohibited by law, neither Landlord
nor Building Manager nor any of their respective officers, directors, employees,
members, managers, or agents shall be liable to Tenant, or to Tenant's agents,
servants, employees, customers, licensees, or invitees for any injury to person
or damage to property caused by any act, omission, or neglect of Tenant, its
agents, servants,

                                       15
<PAGE>   19

employees, customers, invitees, licensees or by any other person entering the
Building or upon the Property under the invitation of Tenant or arising out of
the use of the Property, Building or Premises by Tenant and the conduct of its
business or out of a default by Tenant in the performance of its obligations
hereunder. Tenant hereby indemnifies and holds Landlord and Building Manager and
their respective officers, directors, employees, members, managers and agents
("INDEMNITEES"), harmless from all liability and claims for any property damage,
or bodily injury or death of, or personal injury to, a person in or on the
Premises, or at any other place, including the Property or the Building and this
indemnity shall be enforceable to the full extent whether or not such liability
and claims are the result of the sole, joint or concurrent acts, negligent or
intentional, or otherwise, of Tenant, or its employees, agents, servants,
customers, invitees or licensees. Such indemnity for the benefit of Indemnitees
shall be enforceable even if Indemnitees, or any one or more of them have or has
caused or participated in causing such liability and claims by their joint or
concurrent acts, negligent or intentional, or otherwise. Notwithstanding the
terms of this Lease to the contrary, the terms of this Section shall survive the
expiration or earlier termination of this Lease.

17. DAMAGES FROM CERTAIN CAUSES. To the extent not expressly prohibited by law,
Landlord shall not be liable to Tenant or Tenant's employees, contractors,
agents, invitees or customers, for any injury to person or damage to property
sustained by Tenant or any such party or any other person claiming through
Tenant resulting from any accident or occurrence in the Premises or any other
portion of the Building caused by the Premises or any other portion of the
Building becoming out of repair or by defect in or failure of equipment, pipes,
or wiring, or by broken glass, or by the backing up of drains, or by gas, water,
steam, electricity, or oil leaking, escaping or flowing into the Premises
(except where due to Landlord's willful failure to make repairs required to be
made pursuant to other provisions of this Lease, after the expiration of a
reasonable time after written notice to Landlord of the need for such repairs),
nor shall Landlord be liable to Tenant for any loss or damage that may be
occasioned by or through the acts or omissions of other tenants of the Building
or of any other persons whomsoever, including, but not limited to riot, strike,
insurrection, war, court order, requisition, order of any governmental body or
authority, acts of God, fire or theft.

18. CASUALTY DAMAGE. If the Premises or any part thereof shall be damaged by
fire or other casualty, Tenant shall give prompt written notice thereof to
Landlord. In case the Building shall be so damaged that substantial alteration
or reconstruction of the Building shall, in Landlord's sole opinion, be required
(whether or not the Premises shall have been damaged by such casualty) or in the
event there is less than two (2) years of the Lease Term remaining or in the
event Landlord's mortgagee should require that the insurance proceeds payable as
a result of a casualty be applied to the payment of the mortgage debt or in the
event of any material uninsured loss to the Building, Landlord may, at its
option, terminate this Lease by notifying Tenant in writing of such termination
within ninety (90) days after the date of such casualty. If Landlord does not
thus elect to terminate this Lease, Landlord shall commence and proceed with
reasonable diligence to restore the Building, and the improvements located
within the Premises, if any, for which Landlord had financial responsibility
pursuant to the Work Letter Agreement attached hereto as EXHIBIT D (except that
Landlord shall not be responsible for delays not within the control of Landlord)
to substantially the same condition in which it was immediately prior to the
happening of the casualty. Notwithstanding the foregoing, Landlord's obligation
to restore the Building, and the improvements located within the Premises, if
any, for which Landlord had financial responsibility pursuant to the Work Letter
Agreement, shall not require Landlord to expend for such repair and restoration
work more than the insurance proceeds actually received by the Landlord as a
result of the casualty and Landlord's obligation to restore shall be further
limited so that Landlord shall not be required to expend for the repair and
restoration of the improvements located within the Premises, if any, for which
Landlord had financial responsibility pursuant to the Work Letter Agreement,
more than the dollar amount of the Allowance, if any, described in the Work
Letter Agreement. When the repairs described in the preceding two sentences have
been completed by Landlord, Tenant shall complete the restoration of all
improvements, including furniture, fixtures and equipment, which are necessary
to permit Tenant's reoccupancy of the Premises. Except as set forth above, all
cost and expense of reconstructing the Premises shall be borne by Tenant, and
Tenant shall present Landlord with evidence reasonably satisfactory to Landlord
of Tenant's ability to pay such costs prior to Landlord's commencement of repair
and restoration of the Premises. Landlord shall not be liable for any
inconvenience or annoyance to Tenant or injury to the business of Tenant
resulting in any

                                       16
<PAGE>   20

way from such damage or the repair thereof, except that, subject to the
provisions of the next sentence, Landlord shall allow Tenant a fair diminution
of Rent during the time and to the extent the Premises are unfit for occupancy.
If the Premises or any other portion of the Property is damaged by fire or other
casualty resulting from the fault or negligence of Tenant or any of Tenant's
agents, employees, or invitees, the rent hereunder shall not be diminished
during the repair of such damage and Tenant shall be liable to Landlord for the
cost of the repair and restoration of the Property caused thereby to the extent
such cost and expense is not covered by insurance proceeds. This Section 18
constitutes an express agreement governing damage or destruction of the Premises
or the Building by fire or other casualty, and neither Section 227 of the Real
Property Law of the State of New York, which provides for such contingency in
the absence of an express agreement, nor any other laws of similar import now or
hereafter in effect shall have any application in any such case.

19. CONDEMNATION. If the whole or any substantial part of the Premises or if the
Building or any portion thereof which would leave the remainder of the Building
unsuitable for use as an office building comparable to its use on the
Commencement Date, or if the land on which the Building is located or any
material portion thereof, shall be taken or condemned for any public or
quasi-public use under governmental law, ordinance or regulation, or by right of
eminent domain, or by private purchase in lieu thereof, then Landlord may, at
its option, terminate this Lease and the Rent shall be abated during the
unexpired portion of this Lease, effective when the physical taking of said
Premises or said portion of the Building or land shall occur. In the event this
Lease is not terminated, the Rent for any portion of the Premises so taken or
condemned shall be abated during the unexpired term of this Lease effective when
the physical taking of said portion of the Premises shall occur. All
compensation awarded for any such taking or condemnation, or sale proceeds in
lieu thereof, shall be the property of Landlord, and Tenant shall have no claim
thereto, the same being hereby expressly waived by Tenant, except for any
portions of such award or proceeds which are specifically allocated by the
condemning or purchasing party for the taking of or damage to Tenant's Property
or moving expenses, which Tenant specifically reserves to itself.

20. HAZARDOUS SUBSTANCES.

     A. Tenant hereby represents and covenants to Landlord the following: No
     toxic or hazardous substances or wastes, pollutants or contaminants
     (including, without limitation, asbestos, urea formaldehyde, the group of
     organic compounds known as polychlorinated biphenyls, petroleum products
     including gasoline, fuel oil, crude oil and various constituents of such
     products, radon, and any hazardous substance as defined in the
     Comprehensive Environmental Response, Compensation and Liability Act of
     1980, 42 U.S.C. 9601-9657, as amended ("CERCLA") (collectively,
     "ENVIRONMENTAL POLLUTANTS") other than customary office supplies and
     cleaning supplies stored and handled within the Premises in accordance with
     all applicable laws, will be generated, treated, stored, released or
     disposed of, or otherwise placed, deposited in or located on the Property,
     and no activity shall be taken on the Property, by Tenant, its agents,
     employees, invitees or contractors, that would cause or contribute to (i)
     the Property or any part thereof to become a generation, treatment, storage
     or disposal facility within the meaning of or otherwise bring the Property
     within the ambit of the Resource Conservation and Recovery Act of 1976
     ("RCRA"), 42 U.S.C. 5901 et. seq., or any similar state law or local
     ordinance, (ii) a release or threatened release of toxic or hazardous
     wastes or substances, pollutants or contaminants, from the Property or any
     part thereof within the meaning of, or otherwise result in liability in
     connection with the Property within the ambit of CERCLA, or any similar
     state law or local ordinance, or (iii) the discharge of pollutants or
     effluents into any water source or system, the dredging or filling of any
     waters, or the discharge into the air of any emissions, that would require
     a permit under the Federal Water Pollution Control Act, 33 U.S.C. 1251 et.
     seq., or the Clean Air Act, 42 U.S.C. 7401 et. seq., or any similar state
     law or local ordinance. Landlord shall deliver to Tenant an ACP-5 for the
     Premises.

     B. Tenant agrees to indemnify and hold Indemnitees (as defined in Section
     16) harmless from and against and to reimburse Indemnitees with respect to,
     any and all claims, demands, causes of action, loss, damage, liabilities,
     costs and expenses (including attorneys' fees and court costs) of any and
     every kind or character, known or unknown, fixed or contingent, asserted
     against

                                       17
<PAGE>   21

     or incurred by Landlord at any time and from time-to-time by reason of or
     arising out of the breach of any representation or covenant contained in
     Section 20.A. above.

     C. Tenant shall immediately notify Landlord in writing of any release or
     threatened release of toxic or hazardous wastes or substances, pollutants
     or contaminants of which Tenant has knowledge whether or not the release is
     in quantities that would require under law the reporting of such release to
     a governmental or regulatory agency.

     D. Tenant shall also immediately notify Landlord in writing of, and shall
     contemporaneously provide Landlord with a copy of the following promptly
     after Tenant's receipt of the same:

          1.   Any written notice of release of hazardous wastes or substances,
               pollutants or contaminants on the Property that is provided by
               Tenant or any subtenant or other occupant of the Premises to a
               governmental or regulatory agency;

          2.   Any notice of a violation, or a potential or alleged violation,
               of any Environmental Law (hereinafter defined) that is received
               by Tenant or any subtenant or other occupant of the Premises from
               any governmental or regulatory agency;

          3.   any inquiry, investigation, enforcement, cleanup, removal, or
               other action that is instituted or threatened by a governmental
               or regulatory agency against Tenant or any subtenant or other
               occupant of the Premises and that relates to the release or
               discharge of hazardous wastes or substances, pollutants or
               contaminants on or from the Property;

          4.   Any claim that is instituted or threatened by any third-party
               against Tenant or any subtenant or other occupant of the Premises
               and that relates to any release or discharge of hazardous wastes
               or substances, pollutants or contaminants on or from the
               Property; and

          5.   Any notice of the loss of any environmental operating permit by
               Tenant or any subtenant or other occupant of the Premises.

     E. As used herein "ENVIRONMENTAL LAWS" mean all present and future federal,
     state and municipal laws, ordinances, rules and regulations applicable to
     environmental and ecological conditions, and the rules and regulations of
     the U.S. Environmental Protection Agency, and any other federal, state or
     municipal agency, or governmental board or entity relating to environmental
     matters.

21. AMERICANS WITH DISABILITIES ACT. To the extent required by law, Tenant
agrees to comply with all requirements of the Americans with Disabilities Act
(Public Law (July 26, 1990) ("ADA")) applicable to the Premises and such other
current acts or other subsequent acts (whether federal or state) addressing like
issues as are enacted or amended. Tenant agrees to indemnify and hold Landlord
harmless from any and all reasonable expenses, liabilities, costs or damages
suffered by Landlord as a result of additional obligations which may be imposed
on the Building or the Property under of such acts by virtue of Tenant's
operations and/or occupancy, including the alleged negligence of the Landlord.
Any such provision shall be interpreted in a manner which permits compliance
with the ADA and is hereby amended to permit such compliance.

                                       18
<PAGE>   22

22. EVENTS OF DEFAULT.

     A. The following events shall be deemed to be "EVENTS OF DEFAULT" under
     this Lease:

          1.   Tenant shall fail to pay when due any Base Rent, Additional Rent
               or other amount payable by Tenant to Landlord under this Lease
               for a period of five (5) days after notice (hereinafter sometimes
               referred to as a "MONETARY DEFAULT").

          2.   Any failure by Tenant (other than a Monetary Default) to comply
               with any term, provision or covenant of this Lease, which failure
               is not cured within thirty (30) days after delivery to Tenant of
               notice of the occurrence of such failure provided, however, that
               if the term, condition, covenant or obligation to be performed by
               Tenant is of such nature that the same cannot reasonably be
               performed within such thirty-day period, such default shall be
               deemed to have been cured if Tenant commences such performance
               within said thirty-day period and thereafter diligently
               undertakes to complete the same, and in fact, completes same
               within ninety (90) days after notice.

          3.   Any failure by Tenant to observe or perform any of the covenants
               with respect to (a) assignment and subletting set forth in
               Section 13, (b) mechanic's liens set forth in Section 14, or (c)
               insurance set forth in Section 15 which continues for a period of
               ten (10) days after notice.

          4.   Tenant shall (a) become insolvent, (b) make a transfer in fraud
               of creditors (c) make an assignment for the benefit of creditors,
               (d) admit in writing its inability to pay its debts as they
               become due, (e) file a petition under any section or chapter of
               the United States Bankruptcy Code, as amended, pertaining to
               bankruptcy, or under any similar law or statute of the United
               States or any State thereof, or Tenant or any Guarantor shall be
               adjudged bankrupt or insolvent in proceedings filed against
               Tenant or any Guarantor thereunder; or a petition or answer
               proposing the adjudication of Tenant or any Guarantor as a
               bankrupt or its reorganization under any present or future
               federal or state bankruptcy or similar law shall be filed in any
               court and such petition or answer shall not be discharged, stayed
               or denied within ninety (90) days after the filing thereof.

          5.   A receiver or trustee shall be appointed for all or substantially
               all of the assets of Tenant or any Guarantor or of the Premises
               or of any of Tenant's property located thereon in any proceeding
               brought by Tenant or any Guarantor, or any such receiver or
               trustee shall be appointed in any proceeding brought against
               Tenant or any Guarantor and shall not be discharged or stayed
               within ninety (90) days after such appointment or Tenant or such
               Guarantor shall consent to or acquiesce in such appointment.

          6.   The leasehold estate hereunder shall be taken on execution or
               other process of law in any action against Tenant.

          7.   Tenant shall abandon the Premises for a period of thirty (30)
               days or longer other than in connection with the restoration of
               the Premises following a casualty or condemnation where Tenant
               intends to reoccupy the Premises.

          8.   Tenant shall fail to take possession of and occupy the Premises
               within sixty (60) days following the Commencement Date.

          9.   The liquidation, termination, dissolution, or forfeiture of right
               to do business of Tenant.

                                       19
<PAGE>   23

23. REMEDIES.

     A. Upon the occurrence of any Event of Default, Landlord shall have the
     following rights and remedies, in addition to those allowed by law or
     equity, any one or more of which may be exercised without further notice to
     or demand upon Tenant and which, to the extent permitted by law, may be
     pursued successively or cumulatively as Landlord may elect:

          1.   Landlord may re-enter the Premises and cure any default of
               Tenant, in which event Tenant shall, upon demand, reimburse
               Landlord as Additional Rent for any reasonable cost and expenses
               which Landlord may incur to cure such default; and Landlord shall
               not be liable to Tenant for any loss or damage which Tenant may
               sustain by reason of Landlord's action, regardless of whether
               caused by Landlord's negligence or otherwise.

          2.   Landlord may terminate this Lease by giving to Tenant notice of
               Landlord's election to do so, in which event the Lease Term shall
               end, and all right, title and interest of Tenant hereunder shall
               expire, on the date stated in such notice;

          3.   Landlord may terminate the right of Tenant to possession of the
               Premises without terminating this Lease by giving notice to
               Tenant that Tenant's right to possession shall end on the date
               stated in such notice, whereupon the right of Tenant to
               possession of the Premises or any part thereof shall cease on the
               date stated in such notice; and

          4.   Landlord may enforce the provisions of this Lease and may enforce
               and protect the rights of Landlord hereunder by a suit or suits
               in equity or at law for the specific performance of any covenant
               or agreement contained herein, or for the enforcement of any
               other appropriate legal or equitable remedy, including recovery
               of all moneys due or to become due from Tenant under any of the
               provisions of this Lease.

     Landlord shall not be required to serve Tenant with any notices or demands
     as a prerequisite to its exercise of any of its rights or remedies under
     this Lease, other than those notices and demands specifically required
     under this Lease. TENANT EXPRESSLY WAIVES THE SERVICE OF ANY STATUTORY
     DEMAND OR NOTICE WHICH IS A PREREQUISITE TO LANDLORD'S COMMENCEMENT OF
     EVICTION PROCEEDINGS AGAINST TENANT, INCLUDING THE DEMANDS AND NOTICES
     SPECIFIED IN THE REAL PROPERTY ACTIONS AND PROCEEDINGS LAW OF THE STATE OF
     NEW YORK. TENANT WAIVES ANY RIGHT TO TRIAL BY JURY IN ANY LAWSUIT BROUGHT
     BY LANDLORD TO RECOVER POSSESSION OF THE PREMISES FOLLOWING LANDLORD'S
     TERMINATION OF THIS LEASE PURSUANT TO SECTION 23.A.(2) OR THE RIGHT OF
     TENANT TO POSSESSION OF THE PREMISES PURSUANT TO SECTION 23.A.(3) AND ON
     ANY CLAIM FOR DELINQUENT RENT WHICH LANDLORD MAY JOIN IN ITS LAWSUIT TO
     RECOVER POSSESSION.

     B. If Landlord exercises either of the remedies provided in Sections
     23.A.(2) or 23.A.(3), Tenant shall surrender possession and vacate the
     Premises and immediately deliver possession thereof to Landlord, and
     Landlord may re-enter and take complete and peaceful possession of the
     Premises, with process of law, full and complete license to do so being
     hereby granted to Landlord, and Landlord may remove all occupants and
     property therefrom, using such force as may be necessary to the extent
     allowed by law, without being deemed guilty in any manner of trespass,
     eviction or forcible entry and detainer and without relinquishing
     Landlord's right to Rent or any other right given to Landlord hereunder or
     by operation of law.

     C. If Landlord terminates the right of Tenant to possession of the Premises
     without terminating this Lease, Landlord shall have the right to immediate
     recovery of all amounts then

                                       20
<PAGE>   24

     due hereunder. Such termination of possession shall not release Tenant, in
     whole or in part, from Tenant's obligation to pay Rent hereunder for the
     full Term, and Landlord shall have the right, from time to time, to recover
     from Tenant, and Tenant shall remain liable for, all Base Rent, Additional
     Rent and any other sums accruing as they become due under this Lease during
     the period from the date of such notice of termination of possession to the
     stated end of the Term. In any such case, Landlord may relet the Premises
     or any part thereof for the account of Tenant for such rent, for such time
     (which may be for a term extending beyond the Term) and upon such terms as
     Landlord shall determine and may collect the rents from such reletting.
     Landlord shall not be required to accept any tenant offered by Tenant or to
     observe any instructions given by Tenant relative to such reletting. Also,
     in any such case, Landlord may make repairs, alterations and additions in
     or to the Premises and redecorate the same to the extent deemed by Landlord
     necessary or desirable and in connection therewith change the locks to the
     Premises, and Tenant within ten (10) days after notice shall pay the cost
     of all of the foregoing together with Landlord's reasonable expenses of
     reletting. The rents from any such reletting shall be applied first to the
     payment of the expenses of reentry, redecoration, repair and alterations
     and the expenses of reletting and second to the payment of Rent herein
     provided to be paid by Tenant. Any excess or residue shall operate only as
     an offsetting credit against the amount of Rent due and owing as the same
     thereafter becomes due and payable hereunder, and the use of such
     offsetting credit to reduce the amount of Rent due Landlord, if any, shall
     not be deemed to give Tenant any right, title or interest in or to such
     excess or residue and any such excess or residue shall belong to Landlord
     solely, and in no event shall Tenant be entitled to a credit on its
     indebtedness to Landlord in excess of the aggregate sum (including Base
     Rent and Additional Rent) which would have been paid by Tenant for the
     period for which the credit to Tenant is being determined, had no Event of
     Default occurred. No such reentry or repossession, repairs, alterations and
     additions, or reletting shall be construed as an eviction or ouster of
     Tenant or as an election on Landlord's part to terminate this Lease, unless
     a written notice of such intention is given to Tenant, or shall operate to
     release Tenant in whole or in part from any of Tenant's obligations
     hereunder, and Landlord, at any time and from time to time, may sue and
     recover judgment for any deficiencies remaining after the application of
     the proceeds of any such reletting.

     D. If this Lease is terminated by Landlord pursuant to Section 23.A.(2),
     Landlord shall be entitled to recover from Tenant all Rent accrued and
     unpaid for the period up to and including such termination date, as well as
     all other additional sums payable by Tenant, or for which Tenant is liable
     or for which Tenant has agreed to indemnify Landlord under any of the
     provisions of this Lease, which may be then owing and unpaid, and all costs
     and expenses, including without limitation court costs and reasonable
     attorneys' fees incurred by Landlord in the enforcement of its rights and
     remedies hereunder, and, in addition, Landlord shall be entitled to recover
     as damages for loss of the bargain and not as a penalty (i) the unamortized
     portion of any concessions offered by Landlord to Tenant in connection with
     this Lease, including without limitation Landlord's contribution to the
     cost of tenant improvements and alterations, if any, installed by either
     Landlord or Tenant pursuant to this Lease or any work letter in connection
     with this Lease, (ii) the aggregate sum which at the time of such
     termination represents the excess, if any, of the present value of the
     aggregate rents which would have been payable after the termination date
     had this Lease not been terminated, including, without limitation, Base
     Rent at the annual rate or respective annual rates for the remainder of the
     Term provided for in this Lease and the amount projected by Landlord to
     represent Additional Rent for the remainder of the Term over the then
     present value of the then aggregate fair rent value of the Premises for the
     balance of the Term, such present worth to be computed in each case on the
     basis of a ten percent (10%) per annum discount from the respective dates
     upon which such Rents would have been payable hereunder had this Lease not
     been terminated, and (iii) any damages in addition thereto, including
     without limitation reasonable attorneys' fees and court costs, which
     Landlord sustains as a result of the breach of any of the covenants of this
     Lease other than for the payment of Rent.

     E. Landlord shall use commercially reasonable efforts to mitigate any
     damages resulting from an Event of Default by Tenant under this Lease.
     Landlord's obligation to mitigate damages after an Event of Default by
     Tenant under this Lease shall be satisfied in full if Landlord

                                       21
<PAGE>   25

     undertakes to lease the Premises to another tenant (a "SUBSTITUTE TENANT")
     in accordance with the following criteria:

          1.   Landlord shall have no obligations to solicit or entertain
               negotiations with any other prospective tenants for the Premises
               until Landlord obtains full and complete possession of the
               Premises including, without limitation, the final and
               unappealable legal right to relet the Premises free of any claim
               of Tenant;

          2.   Landlord shall not be obligated to lease or show the Premises, on
               a priority basis, offer the Premises to a prospective tenant when
               other premises in the Building suitable for that prospective
               tenant's use are (or soon will be) available;

          3.   Landlord shall not be obligated to lease the Premises to a
               Substitute Tenant for a Rent less than the current fair market
               Rent then prevailing for similar uses in comparable buildings in
               the same market area as the Building, nor shall Landlord be
               obligated to enter into a new lease under other terms and
               conditions that are unacceptable to Landlord under Landlord's
               then current leasing policies for comparable space in the
               Building;

          4.   Landlord shall not be obligated to enter into a lease with a
               Substitute Tenant whose use would:

               a.   violate any restriction, covenant, or requirement contained
                    in the lease of another tenant of the Building;

               b.   adversely affect the reputation of the Building; or

               c.   be incompatible with the operation of the Building as an
                    office building;

          5.   Landlord shall not be obligated to enter into a lease with any
               proposed Substitute Tenant which does not have, in Landlord's
               reasonable opinion, sufficient financial resources to operate the
               Premises in a first class manner; and

          6.   Landlord shall not be required to expend any amount of money to
               alter, remodel, or otherwise make the Premises suitable for use
               by a proposed Substitute Tenant unless:

               a.   Tenant pays any such sum to Landlord in advance of
                    Landlord's execution of a lease with such tenant (which
                    payment shall not be in lieu of any damages or other sums to
                    which Landlord may be entitled as a result of Tenant's
                    default under this Lease); or

               b.   Landlord, in Landlord's reasonable discretion, determines
                    that any such expenditure is financially justified in
                    connection with entering into any such substitute lease.

     F. All property of Tenant removed from the Premises by Landlord pursuant to
     any provision of this Lease or applicable law may be handled, removed or
     stored by Landlord at the cost and expense of Tenant, and Landlord shall
     not be responsible in any event for the value, preservation or safekeeping
     thereof. Tenant shall pay Landlord for all reasonable expenses incurred by
     Landlord with respect to such removal and storage so long as the same is in
     Landlord's possession or under Landlord's control. All such property not
     removed from the Premises or retaken from storage by Tenant within thirty
     (30) days after the end of the Term or the termination of Tenant's right to
     possession of the Premises, however terminated, at Landlord's option, shall
     be

                                       22
<PAGE>   26

     conclusively deemed to have been conveyed by Tenant to Landlord as by bill
     of sale without further payment or credit by Landlord to Tenant.

     G. If Tenant is adjudged bankrupt, or a trustee in bankruptcy is appointed
     for Tenant, Landlord and Tenant, to the extent permitted by law, agree to
     request that the trustee in bankruptcy determine within sixty (60) days
     thereafter whether to assume or to reject this Lease.

     H. The receipt by Landlord of less than the full rent due shall not be
     construed to be other than a payment on account of rent then due, nor shall
     any statement on Tenant's check or any letter accompanying Tenant's check
     be deemed an accord and satisfaction, and Landlord may accept such payment
     without prejudice to Landlord's right to recover the balance of the rent
     due or to pursue any other remedies provided in this lease. The acceptance
     by Landlord of rent hereunder shall not be construed to be a waiver of any
     breach by Tenant of any term, covenant or condition of this Lease. No act
     or omission by Landlord or its employees or agents during the Lease Term of
     this Lease shall be deemed an acceptance of a surrender of the Premises,
     and no agreement to accept such a surrender shall be valid unless in
     writing and signed by Landlord.

     I. In the event of any litigation between Tenant and Landlord to enforce
     any provision of this Lease or any right of either party hereto, the
     unsuccessful party to such litigation shall pay to the successful party all
     costs and expenses, including reasonable attorney's fees, incurred therein.
     Furthermore, if Landlord, without fault, is made a party to any litigation
     instituted by or against Tenant, Tenant shall indemnify Landlord against,
     and protect, defend, and save it harmless from, all costs and expenses,
     including reasonable attorney's fees, incurred by it in connection
     therewith. If Tenant, without fault, is made party to any litigation
     instituted by or against Landlord, Landlord shall indemnify Tenant against,
     and protect, defend, and save it harmless from, all costs and expenses,
     including reasonable attorney's fees, incurred by it in connection
     therewith.

     J. Landlord and Tenant each waive trial by jury in any action, proceeding
     or counterclaim brought by either of them against the other on any matters
     arising out of or in any way connected with this Lease, the relationship of
     Landlord and Tenant or Tenant's use or occupancy of the Premises or the
     operation, maintenance or control of the Building. Tenant shall not
     interpose any counterclaim it may otherwise assert in any summary
     proceeding whether such summary proceeding is based on nonpayment of Rents
     or on Tenant's holding over after expiration of the Lease Term or on any
     other basis pursuant to Article 7 of the Real Property Actions and
     Proceedings Law of the State of New York, unless by not interposing such
     counterclaim Tenant would be barred from asserting such counterclaim in a
     separate action or proceeding.

24. NO WAIVER. Failure of Landlord to declare any default immediately upon its
occurrence, or delay in taking any action in connection with an event of
default, shall not constitute a waiver of such default, nor shall it constitute
an estoppel against Landlord, but Landlord shall have the right to declare the
default at any time and take such action as is lawful or authorized under this
Lease. Failure by Landlord to enforce its rights with respect to any one default
shall not constitute a waiver of its rights with respect to any subsequent
default.

25. PEACEFUL ENJOYMENT. Tenant shall, and may peacefully have, hold, and enjoy
the Premises, subject to the other terms hereof, provided that Tenant pays the
Rent and other sums herein recited to be paid by Tenant and performs all of
Tenant's covenants and agreements herein contained. This covenant and any and
all other covenants of Landlord shall be binding upon Landlord and its
successors only with respect to breaches occurring during its or their
respective periods of ownership of the Landlord's interest hereunder.

26. [RESERVED.]

27. HOLDING OVER. In the event of holding over by Tenant after expiration or
other termination of this Lease or in the event Tenant continues to occupy the
Premises after the termination of Tenant's right of possession pursuant to
Section 23.A.(3) hereof, occupancy of the Premises subsequent to such
termination or expiration shall be that of a tenancy at sufferance and in no
event for month-to-month or year-to-year.

                                       23
<PAGE>   27

Tenant shall, throughout the entire holdover period, be subject to all the terms
and provisions of this Lease and shall pay for its use and occupancy an amount
(on a per month basis without reduction for any partial months during any such
holdover) equal to one and one half the sum (or 150%) of the Base Rent and
Additional Rent which would have been applicable had the Lease Term continued
through the period of such holding over by Tenant. No holding over by Tenant or
payments of money by Tenant to Landlord after the expiration of the Lease Term
shall be construed to extend the Lease Term or prevent Landlord from recovery of
immediate possession of the Premises by summary proceedings or otherwise unless
Landlord has sent written notice to Tenant that Landlord has elected to extend
the Lease Term. In addition to the obligation to pay the amounts set forth above
during any such holdover period, Tenant shall also be liable to Landlord for all
damages, including, without limitation, any consequential damages, which
Landlord may suffer by reason of any holding over by Tenant and Tenant shall
also indemnify Landlord against any and all claims made by any other tenant or
prospective tenant against Landlord for delay by Landlord in delivering
possession of the Premises to such other tenant or prospective tenant. Tenant
waives any rights under Section 2201 of the Civil Practice Law and Rules of the
State of New York in connection with any holdover proceedings that Landlord may
institute against Tenant.

28. SUBORDINATION TO MORTGAGE/ESTOPPEL CERTIFICATE. Tenant accepts this Lease
subject and subordinate to any mortgage, deed of trust or other lien presently
existing or hereafter arising upon the Premises, or upon the Building and/or the
Property and to any renewals, modifications, refinancings and extensions
thereof, but Tenant agrees that any such mortgagee shall have the right at any
time to subordinate such mortgage, deed of trust or other lien to this Lease on
such terms and subject to such conditions as such mortgagee may deem appropriate
in its discretion. The provisions of the foregoing sentence shall be
self-operative and no further instrument of subordination shall be required.
However, Landlord is hereby irrevocably vested with full power and authority to
subordinate this Lease to any mortgage, deed of trust or other lien now existing
or hereafter placed upon the Premises, or the Building and/or the Property and
Tenant agrees within twenty (20) days after demand to execute such further
instruments subordinating this Lease or attorning to the holder of any such
liens as Landlord may request. In the event that Tenant should fail to execute
any subordination or other agreement required by this Section promptly as
requested, Tenant hereby irrevocably constitutes Landlord as its
attorney-in-fact to execute such instrument in Tenant's name, place and stead,
it being agreed that such power is one coupled with an interest in Landlord and
is accordingly irrevocable. Tenant agrees that it will from time-to-time upon
request by Landlord execute and deliver to such persons as Landlord shall
request a statement in recordable form certifying that this Lease is unmodified
and in full force and effect (or if there have been modifications, that the same
is in full force and effect as so modified), stating the dates to which rent and
other charges payable under this Lease have been paid, stating that Landlord is
not in default hereunder (or if Tenant alleges a default stating the nature of
such alleged default) and further stating such other matters as Landlord shall
reasonably require. Landlord and Tenant agree periodically to furnish within
twenty (20) days after so requested by the other party, ground lessor or the
holder of any deed of trust, mortgage or security agreement covering the
Building, the Property, or any interest of Landlord therein, a certificate
signed by such party certifying (a) that this Lease is in full force and effect
and unmodified (or if there have been modifications, that the same is in full
force and effect as modified and stating the modifications), (b) as to the
Commencement Date and the date through which Base Rent and Tenant's Additional
Rent have been paid, (c) that Tenant has accepted possession of the Premises and
that any improvements required by the terms of this Lease to be made by Landlord
have been completed to the satisfaction of Tenant, (d) that except as stated in
the certificate no rent has been paid more than thirty (30) days in advance of
its due date, (e) that the address for notices to be sent to Landlord or Tenant
is as set forth in this Lease (or has been changed by notice duly given and is
as set forth in the certificate), (f) that except as stated in the certificate,
Tenant, as of the date of such certificate, has no charge, lien, or claim of
offset against rent due or to become due, (g) that except as stated in the
certificate, Landlord is not then in default under this Lease, (h) as to the
amount of the Approximate Rentable Area of the Premises then occupied by Tenant,
(i) that there are no renewal or extension options, purchase options, rights of
first refusal or the like in favor of Tenant except as set forth in this Lease,
(j) the amount and nature of accounts payable to Landlord under terms of this
Lease, and (k) as to such other matters as may be reasonably requested by such
party or ground lessor or the holder of any such deed of trust, mortgage or
security agreement. Any such certificate may be relied upon by any ground
lessor, prospective purchaser, secured party, mortgagee or any beneficiary under
any mortgage, deed of trust on the Building or the Property or any part thereof
or interest of Landlord therein.

                                       24
<PAGE>   28

29. NOTICE. Any notice required or permitted to be given under this Lease or by
law shall be deemed to have been given if it is written and delivered in person
or mailed by Registered or Certified mail, postage prepaid, or sent by a
nationally recognized overnight delivery service to the party who is to receive
such notice at the address specified in Section 1.Q. of this Lease. When so
mailed, the notice shall be deemed to have been given two (2) business days
after the date it was mailed. When sent by overnight delivery service, the
notice shall be deemed to have been given on the next business day after deposit
with such overnight delivery service. The address specified in Section 1.Q. of
this Lease may be changed from time to time by giving written notice thereof to
the other party.

30. SURRENDER OF PREMISES. Upon the termination, whether by lapse of time or
otherwise, or upon any termination of Tenant's right to possession without
termination of this Lease, Tenant will at once surrender possession and vacate
the Premises, together with all Leasehold Improvements (except those Leasehold
Improvements Tenant is required to remove pursuant to Section 8 hereof), to
Landlord in good condition and repair, ordinary wear and tear excepted;
conditions existing because of Tenant's failure to perform maintenance, repairs
or replacements as required of Tenant under this Lease shall not be deemed
"reasonable wear and tear." Tenant shall surrender to Landlord all keys to the
Premises and make known to Landlord the explanation of all combination locks
which Tenant is permitted to leave on the Premises. Subject to the Landlord's
rights under Section 23 hereof, if Tenant fails to remove any of Tenant's
Property within ten (10) days after the termination of this Lease, or Tenant's
right to possession hereunder, Landlord, at Tenant's sole cost and expenses,
shall be entitled to remove and/or store such Tenant's Property and Landlord
shall be in no event be responsible for the value, preservation or safekeeping
thereof. Tenant shall pay Landlord, upon demand, any and all reasonable expenses
caused by such removal and all storage charges against such property so long as
the same shall be in possession of Landlord or under the control of Landlord. In
addition, if Tenant fails to remove any Tenant's Property from the Premises or
storage, as the case may be, within ten (10) days after written notice from
Landlord, Landlord, at its option, may deem all or any part of such Tenant's
Property to have been abandoned by Tenant and title thereof shall immediately
pass to Landlord under this Lease as by a bill of sale.

31. RIGHTS RESERVED TO LANDLORD. Landlord reserves the following rights,
exercisable without notice, except as provided herein, and without liability to
Tenant for damage or injury to property, person or business and without
affecting an eviction or disturbance of Tenant's use or possession or giving
rise to any claim for setoff or abatement of rent or affecting any of Tenant's
obligations under this Lease: (1) upon thirty (30) days' prior notice to change
the name or street address of the Building; (2) to install and maintain signs on
the exterior and interior of the Building; (3) to designate and approve window
coverings to present a uniform exterior appearance; (4) to make any decorations,
alterations, additions, improvements to the Building or Property, or any part
thereof (including, with prior notice, the Premises) which Landlord shall
desire, or deem necessary for the safety, protection, preservation or
improvement of the Building or Property, or as Landlord may be required to do by
law; (5) to retain at all times and to use in appropriate instances, pass keys
to all locks within and to the Premises; (6) to reasonably approve the weight,
size, or location of heavy equipment, or articles within the Premises; (7) to
close or restrict access to the Building at all times other than Normal Business
Hours subject to Tenant's right to admittance at all times under such
regulations as Landlord may prescribe from time to time, or to close temporarily
any of the entrances to the Building; provided Landlord shall have the right to
restrict or prohibit access to the Building or the Premises at any time Landlord
determines it is necessary to do so to minimize the risk of injuries or death to
persons or damage to property; (8) to reasonably change the arrangement and/or
location of entrances of passageways, doors and doorways, corridors, elevators,
stairs, toilets and public parts of the Building or Property; (9) to reasonably
regulate access to telephone, electrical and other utility closets in the
Building and to require use of designated contractors for any work involving
access to the same; (10) if Tenant has vacated the Premises during the last six
(6) months of the Lease Term, to perform additions, alterations and improvements
to the Premises in connection with a reletting or anticipated reletting thereof
without being responsible or liable for the value or preservation of any then
existing improvements to the Premises; and (11) to grant to anyone the exclusive
right to conduct any business or undertaking in the Building, provided that the
party providing such service does so at competitive rates and provided
Landlord's exercise of its rights under this clause 11, shall not be deemed to
prohibit Tenant from the operation of its business in the Premises and shall not
constitute a constructive eviction.

                                       25
<PAGE>   29

32. MISCELLANEOUS.

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

     B. Tenant agrees not to record this Lease or any short form or memorandum
     hereof.

     C. This Lease and the rights and obligations of the parties hereto shall be
     interpreted, construed, and enforced in accordance with the laws of the
     state in which the Building is located.

     D. Events of "FORCE MAJEURE" shall include strikes, riots, acts of God,
     shortages of labor or materials, war, governmental laws, regulations or
     restrictions, or any other cause whatsoever beyond the control of Landlord
     or Tenant, as the case may be. Whenever a period of time is herein
     prescribed for the taking of any action by Landlord or Tenant (other than
     the payment of Rent and all other such sums of money as shall become due
     hereunder), such party shall not be liable or responsible for, there shall
     be excluded from the computation of such period of time, any delays due to
     events of Force Majeure.

     E. Except as expressly otherwise herein provided, with respect to all
     required acts of Tenant, time is of the essence of this Lease.

     F. Landlord shall have the right to transfer and assign, in whole or in
     part, all of its rights and obligations hereunder and in the Building and
     Property referred to herein, and in such event and upon such transfer
     Landlord shall be released from any further obligations hereunder, and
     Tenant agrees to look solely to such successor in interest of Landlord for
     the performance of such obligations.

     G. Tenant hereby represents to Landlord that it has dealt directly with and
     only with the Broker as a broker in connection with this Lease. Landlord
     and Tenant hereby indemnify and hold each other harmless against any loss,
     claim, expense or liability with respect to any commissions or brokerage
     fees claimed on account of the execution and/or renewal of this Lease due
     to any action of the indemnifying party. Landlord shall be responsible for
     the payment of any commission or fee due to the Broker.

     H. If there is more than one Tenant, or if the Tenant as such is comprised
     of more than one person or entity, the obligations hereunder imposed upon
     Tenant shall be joint and several obligations of all such parties. All
     notices, payments, and agreements given or made by, with or to any one of
     such persons or entities shall be deemed to have been given or made by,
     with or to all of them.

     I. The individual signing this Lease on behalf of Tenant represents (1)
     that such individual is duly authorized to execute or attest and deliver
     this Lease on behalf of Tenant in accordance with the organizational
     documents of Tenant; (2) that this Lease is binding upon Tenant; (3) that
     Tenant is duly organized and legally existing in the state of its
     organization, and is qualified to do business in the state in which the
     Premises is located.

     J. Tenant acknowledges that the financial capability of Tenant to perform
     its obligations hereunder is material to Landlord and that Landlord would
     not enter into this Lease but for its belief, based on its review of
     Tenant's financial statements, that Tenant is capable of performing such
     financial obligations. Tenant hereby represents, warrants and certifies to
     Landlord that its financial statements previously furnished to Landlord
     were at the time given true and correct in all material respects and that
     there have been no material subsequent changes thereto as of the date of
     this Lease.

                                       26
<PAGE>   30

     K. Notwithstanding anything to the contrary contained in this Lease, the
     expiration of the Lease Term, whether by lapse of time or otherwise, shall
     not relieve either party from its obligations accruing prior to the
     expiration of the Lease Term, and such obligations shall survive any such
     expiration or other termination of the Lease Term.

     L. Landlord has delivered a copy of this Lease to Tenant for Tenant's
     review only, and the delivery hereof does not constitute an offer to Tenant
     or an option. This Lease shall not be effective until an original of this
     Lease executed by both Landlord and Tenant and an original Guaranty, if
     applicable, executed by each Guarantor is delivered to and accepted by
     Landlord, and this Lease has been approved by Landlord's mortgagee, if
     required.

     M. Landlord and Tenant understand, agree and acknowledge that (i) this
     Lease has been freely negotiated by both parties; and (ii) in any
     controversy, dispute or contest over the meaning, interpretation, validity,
     or enforceability of this Lease or any of its terms or conditions, there
     shall be not inference, presumption, or conclusion drawn whatsoever against
     either party by virtue of that party having drafted this Lease or any
     portion thereof.

     N. The headings and titles to the paragraphs of this Lease are for
     convenience only and shall have no affect upon the construction or
     interpretation of any part hereof.

     O. Receipt by Landlord of Tenant's keys to the Premises shall not
     constitute an acceptance of surrender of the Premises.

     P. This Lease shall be governed by, and be construed in accordance with,
     the laws of the State of New York without regard to the principles of
     conflicts of laws. To the fullest extent permitted by law, Landlord and
     Tenant hereby unconditionally and irrevocably waive any claims to assert
     that the law of any other jurisdiction governs this Lease and agrees that
     this Lease shall be governed by and construed in accordance with the laws
     of the State of New York pursuant to Section 5-1401 of the New York General
     Obligations Law. Any legal suit, action or proceeding against Tenant or
     Landlord arising out of or relating to this Lease may be instituted in any
     federal or state court in New York, New York having subject matter
     jurisdiction, pursuant to Section 5-1402 of the New York General
     Obligations Law, and Landlord and Tenant hereby waive any objection which
     they may now or hereafter have to the laying of venue of any such suit,
     action or proceeding including, without limitation, any claim of forum non
     conveniens pursuant to any rule of common law and/or any applicable federal
     or state statute, law or provision, and Landlord and Tenant hereby
     irrevocably submit to the jurisdiction of any such court in any suit,
     action or proceeding.

     Q. Landlord represents that, to the best of Landlord's knowledge, Landlord
     has received no violations with respect to the Building which will delay
     the construction of Tenant's Initial Alterations.

     R. Attached hereto as Exhibit H is the certificate of occupancy for the
     Building.

     S. Landlord shall provide risers to the Premises for redundant internet
     access from the roof and the basement of the Building.

     T. Tenant shall have the right use the roof of the Building for a satellite
     dish or other similar equipment, subject to available space on the roof.
     Tenant acknowledges that Tenant shall enter into in agreement for the use
     of such roof space with Landlord's then current licensor with respect to
     such matters, and Tenant shall pay Landlord's (or the licensor's) then
     current fees for the use of such roof space.

33. ENTIRE AGREEMENT. This Lease, including the following Exhibits:

Exhibit A - Outline and Location of Premises
Exhibit B - Rules and Regulations

                                       27
<PAGE>   31

Exhibit C - Payment of Taxes
Exhibit D - Work Letter
Exhibit E - Commencement Letter (Sample)
Exhibit F - Porter's Wage Payments
Exhibit G - Cleaning Specifications
Exhibit H - Certificate of Occupancy

constitutes the entire agreement between the parties hereto with respect to the
subject matter of this Lease and supersedes all prior agreements and
understandings between the parties related to the Premises, including all lease
proposals, letters of intent and similar documents. Tenant expressly
acknowledges and agrees that Landlord has not made and is not making, and
Tenant, in executing and delivering this Lease, is not relying upon, any
warranties, representations, promises or statements, except to the extent that
the same are expressly set forth in this Lease. All understandings and
agreements heretofore had between the parties are merged in this Lease which
alone fully and completely expresses the agreement of the parties, neither party
relying upon any statement or representation not embodied in this Lease. This
Lease may be modified only be a written agreement signed by Landlord and Tenant.
Landlord and Tenant expressly agree that there are and shall be no implied
warranties of merchantability, habitability, suitability, fitness for a
particular purpose or of any other kind arising out of this Lease, all of which
are hereby waived by Tenant, and that there are no warranties which extend
beyond those expressly set forth in this Lease.

34. LIMITATION OF LIABILITY. EXCEPT TO THE EXTENT SPECIFICALLY ADDRESSED HEREIN,
TENANT SHALL NOT HAVE THE RIGHT TO AN ABATEMENT OF RENT OR TO TERMINATE THIS
LEASE AS A RESULT OF LANDLORD'S DEFAULT AS TO ANY COVENANT OR AGREEMENT
CONTAINED IN THIS LEASE OR AS A RESULT OF THE BREACH OF ANY PROMISE OR
INDUCEMENT IN CONNECTION HEREWITH, WHETHER IN THIS LEASE OR ELSEWHERE AND TENANT
HEREBY WAIVES SUCH REMEDIES OF ABATEMENT OF RENT AND TERMINATION. TENANT HEREBY
AGREES THAT TENANT'S REMEDIES FOR DEFAULT HEREUNDER OR IN ANY WAY ARISING IN
CONNECTION WITH THIS LEASE INCLUDING ANY BREACH OF ANY PROMISE OR INDUCEMENT OR
WARRANTY, EXPRESSED OR IMPLIED, SHALL BE LIMITED TO SUIT FOR DIRECT AND
PROXIMATE DAMAGES PROVIDED THAT TENANT HAS GIVEN THE NOTICES AS HEREIN REQUIRED.
NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS LEASE, THE LIABILITY
OF LANDLORD TO TENANT FOR ANY DEFAULT BY LANDLORD UNDER THIS LEASE SHALL BE
LIMITED TO THE INTEREST OF LANDLORD IN THE BUILDING AND THE PROPERTY AND THE
PROCEEDS THEREOF AND TENANT AGREES TO LOOK SOLELY TO LANDLORD'S INTEREST IN THE
BUILDING AND THE PROPERTY AND THE PROCEEDS THEREOF FOR THE RECOVERY OF ANY
JUDGMENT AGAINST THE LANDLORD, IT BEING INTENDED THAT LANDLORD SHALL NOT BE
PERSONALLY LIABLE FOR ANY JUDGMENT OR DEFICIENCY. TENANT HEREBY COVENANTS THAT,
PRIOR TO THE FILING OF ANY SUIT FOR DIRECT AND PROXIMATE DAMAGES, IT SHALL GIVE
LANDLORD AND ALL MORTGAGEES WHOM TENANT HAS BEEN NOTIFIED HOLD MORTGAGES OR DEED
OF TRUST LIENS ON THE PROPERTY, BUILDING OR PREMISES ("LANDLORD MORTGAGEES")
NOTICE AND REASONABLE TIME TO CURE ANY ALLEGED DEFAULT BY LANDLORD.

                                       28
<PAGE>   32

IN WITNESS WHEREOF, Landlord and Tenant have executed this Lease in multiple
original counterparts as of the day and year first above written.

                                    LANDLORD:
                                    TRANSWESTERN LEXINGTON, LLC

                                    By: /s/ RANDALL BESSOLO
                                       -----------------------------------------
                                    Name: Randall S. Bessolo
                                         ---------------------------------------
                                    Title: Managing Director
                                          --------------------------------------

                                    TENANT:
                                    FUTURELINK CORP.

                                    By: /s/ RICHARD WHITE
                                       -----------------------------------------
                                    Name: R.M. White
                                         ---------------------------------------
                                    Title: Senior V.P. Admin.
                                          --------------------------------------

                                       29
<PAGE>   33

                                    EXHIBIT A

                        OUTLINE AND LOCATION OF PREMISES

This Exhibit is attached to and made a part of the Lease dated August 8, 2000
by and between TRANSWESTERN LEXINGTON, LLC ("LANDLORD") and FUTURELINK CORP., a
Delaware corporation ("TENANT") for space in the Building located at 360
Lexington Avenue, New York, New York.

                                      A-1
<PAGE>   34

                                    EXHIBIT B

                              RULES AND REGULATIONS

The following rules and regulations shall apply, where applicable, to the
Premises, the Building, the parking garage associated therewith (if any), the
Property and the appurtenances thereto:

1.   Sidewalks, entrances, passageways, courts, corridors, vestibules, halls,
     elevators and stairways in and about the Building shall not be obstructed
     nor shall objects be placed against glass partitions, doors or windows
     which would be unsightly from the Building's corridors from the exterior of
     the Building.

2.   Plumbing, fixtures and appliances shall be used for only the purpose for
     which they were designed and no foreign substance of any kind whatsoever
     shall be thrown or placed therein. Damage resulting to any such fixtures or
     appliances from misuse by Tenant or its agents, employees or invitees,
     shall be paid for by Tenant and Landlord shall not in any case be
     responsible therefor.

3.   Any sign, lettering, picture, notice, advertisement installed within the
     Premises which is visible from the public corridors within the Building
     shall be installed in such manner, and be of such character and style, as
     Landlord shall approve, in writing in its reasonable discretion. No sign,
     lettering, picture, notice or advertisement shall be placed on any outside
     window or door or in a position to be visible from outside the Building. No
     nails, hooks or screws (except for customary artwork or wall hangings)
     shall be driven or inserted into any part of the Premises or Building
     except by Building maintenance personnel, nor shall any part of the
     Building be defaced or damaged by Tenant.

4.   Tenant shall not place any additional lock or locks on any door in the
     Premises or Building without Landlord's prior written consent which shall
     not be unreasonably withheld. A reasonable number of keys to the locks on
     the doors in the Premises shall be furnished by Landlord to Tenant at the
     cost of Tenant, and Tenant shall not have any duplicate keys made. All keys
     and passes shall be returned to Landlord at the expiration or earlier
     termination of this Lease.

5.   Tenant shall refer all contractors, contractors representatives and
     installation technicians for Landlord for Landlord's supervision, approval
     and control before the performance of any contractual services which shall
     not be unreasonably withheld. This provision shall apply to all work
     performed in the Building including, but not limited to installation of
     telephones, telegraph equipment, electrical devices and attachments, doors,
     entranceways, and any and all installations of every nature affecting
     floors, walls, woodwork, window trim, ceilings, equipment and any other
     physical portion of the Building. Tenant shall not waste electricity, water
     or air conditioning. All controls shall be adjusted only by Building
     personnel.

6.   Movement in or out of the Building of furniture or office equipment, or
     dispatch or receipt by Tenant of any merchandise or materials which require
     the use of elevators, stairways, lobby areas, or loading dock areas, shall
     be restricted to hours reasonably designated by Landlord. Tenant must seek
     Landlord's prior approval by providing in writing a detailed listing of
     such activity. If approved by Landlord, such activity shall be under the
     supervision of Landlord and performed in the manner stated by Landlord.
     Landlord may prohibit any article, equipment or any other item from being
     brought into the Building. Tenant is to assume all risk for damage to
     articles moved and injury to persons resulting from such activity. If any
     equipment, property and/or personnel of Landlord or of any other tenant is
     damaged or injured as a result of or in connection with such activity,
     Tenant shall be solely liable for any and all damage or loss resulting
     therefrom.

7.   All corridor doors, when not in use, shall remain closed. Tenant shall
     cause all doors to the Premises to be closed and securely locked before
     leaving the Building at the end of the day.

                                      B-1
<PAGE>   35

8.   Tenant shall keep all electrical and mechanical apparatus owned by Tenant
     free of vibration, noise and airwaves which may be transmitted beyond the
     Premises.

9.   Canvassing, soliciting and peddling in or about the Building or Property is
     prohibited. Tenant shall cooperate and use its best efforts to prevent the
     same.

10.  Tenant shall not use the Premises in any manner which would overload the
     standard heating, ventilating or air conditioning systems of the Building.

11.  Tenant shall not utilize any equipment or apparatus in such manner as to
     create any magnetic fields or waves which adversely affect or interfere
     with the operation of any systems or equipment in the Building or Property.

12.  Bicycles and other vehicles are not permitted inside or on the walkways
     outside the Building, except in those areas specifically designated by
     Landlord for such purposes.

13.  Tenant shall not operate or permit to be operated on the Premises any coin
     or token operated vending machine or similar device (including, without
     limitation, telephones, lockers, toilets, scales, amusements devices and
     machines for sale of beverages, foods, candy, cigarettes or other goods),
     except for those vending machines or similar devices which are for the sole
     and exclusive use of Tenant's employees, and then only if such operation
     does not violate the lease of any other tenant in the Building.

14.  Tenant shall utilize the termite and pest extermination service designated
     by Landlord to control termites and pests in the Premises. Tenant shall
     bear the cost and expense of such extermination services provided such cost
     is customary and reasonable.

15.  Tenant shall not open or permit to be opened any window in the Premises.
     This provision shall not be construed as limiting access of Tenant to any
     balcony adjoining the Premises.

16.  To the extent permitted by law, Tenant shall not permit picketing or other
     union activity involving its employees or agents in the Building or on the
     Property, except in those locations and subject to time and other
     constraints as to which Landlord may give its prior written consent, which
     consent may be withheld in Landlord' sole discretion.

17.  Tenant shall not make or permit any use of the Premises, the Building or
     the Property, respectively, which is directly or indirectly forbidden by
     law, ordinance, governmental regulation or order, or direction of
     applicable public authority, or which may be dangerous to person or
     property.

18.  Tenant shall not use or occupy the Premises in any manner or for any
     purpose which would injure the reputation or impair the present or future
     value of the Premises, the Building or the Property; without limiting the
     foregoing, Tenant shall not use or permit the Premises or any portion
     thereof to be used for lodging, sleeping or for any illegal purpose.

19.  All deliveries to or from the Premises shall be made only at times, in the
     areas and through the entrances and exits designated for such purposes by
     Landlord. Tenant shall not permit the process of receiving deliveries to or
     from the Premises outside of said areas or in a manner which may interfere
     with the use by any other tenant of its premises or any common areas, any
     pedestrian use of such area, or any use which is inconsistent with good
     business practice.

20.  Tenant shall carry out Tenant's permitted repair, maintenance, alterations,
     and improvements in the Premises only during times agreed to in advance by
     Landlord and in a manner which will not interfere with the rights of other
     tenants in the Building.

                                      B-2
<PAGE>   36

21.  Landlord may from time to time adopt appropriate systems and procedures for
     the security or safety of the Building, its occupants, entry and use, or
     its contents. Tenant, Tenant's agents, employees, contractors, guests and
     invitees shall comply with Landlord's reasonable requirements thereto.

22.  Landlord shall have the right to prohibit the use of the name of the
     Building by Tenant that in Landlord's opinion may tend to impair the
     reputation of the Building or its desirability for Landlord or its other
     tenants. Upon written notice from Landlord, Tenant will refrain from and/or
     discontinue such publicity immediately.

23.  Neither Tenant nor any of its employees, agents, contractors, invitees or
     customers shall smoke in any area designated by Landlord (whether through
     the posting of a "no smoking" sign or otherwise) as a "no smoking" area. In
     no event shall Tenant or any of its employees, agents, contractors,
     invitees or customers smoke in the hallways or bathrooms of the Building.
     Landlord reserves the right to designate, from time to time, additional
     areas of the Building and the Property as "no smoking" areas and to
     designate the entire Building and the Property as a "no smoking" area.

                                      B-3
<PAGE>   37

                                    EXHIBIT C

                                PAYMENT OF TAXES

This Exhibit is attached to and made a part of the Lease dated August 8, 2000
by and between TRANSWESTERN LEXINGTON, LLC ("LANDLORD") and FUTURELINK CORP.
("TENANT") for space in the Building located at 360 Lexington Avenue, New York,
New York.

A. During each calendar year, or portion thereof, falling within the Lease Term,
Tenant shall pay to Landlord as Additional Rent hereunder Tenant's Pro Rata
Share of the amount by which (a) Taxes (as defined below) for the applicable
calendar year exceeds Taxes (as finally determined following any tax reduction
proceedings) for the Tax Year (as defined below) beginning on July 1, 2000 and
ending on June 30, 2001 (the "BASE YEAR"). In no event shall the amount required
to be paid by Tenant with respect to Taxes for any calendar year during the
Lease Term be less than zero. Prior to January 1 of each calendar year during
the Lease Term, or as soon thereafter as practical, Landlord shall make a good
faith estimate of Taxes for the applicable full or partial calendar year (based
on the Taxes due or to become due during the current fiscal Tax Year) and
Tenant's Pro Rata Share thereof. On or before the first day of each month during
such calendar year, Tenant shall pay Landlord, as Additional Rent, a monthly
installment equal to one-twelfth of Tenant's Pro Rata Share of Landlord's
estimate of the amount by which Taxes for such calendar year are estimated to
exceed Taxes for the Base Year. Landlord shall have the right from time to time
during any such calendar year to revise the estimate of Taxes for such year and
provide Tenant with a revised statements therefor (provided, however, Landlord
agrees that Landlord shall not issue a revised statement more than twice in any
calendar year), and thereafter the amount Tenant shall pay each month shall be
based upon such revised estimate. If Landlord does not provide Tenant with an
estimate of the Taxes by January 1 of any calendar year, Tenant shall continue
to pay a monthly installment based on the previous year's estimate until such
time as Landlord provides Tenant with an estimate of Taxes for the current year.
Upon receipt of such current year's estimate, an adjustment shall be made for
any month during the current year with respect to which Tenant paid monthly
installments of Additional Rent based on the previous year's estimate. Tenant
shall pay Landlord for any underpayment within thirty (30) days of demand. Any
overpayment in excess of the equivalent of one (1) month's Base Rent shall, at
Landlord's option, be refunded to Tenant or credited against the installment(s)
of Additional Rent next coming due under the Lease. Any overpayment in an amount
equal to or less than the equivalent of one (1) month's Base Rent shall, at
Landlord's option, be refunded to Tenant or credited against the installment of
Additional Rent due for the month immediately following the furnishing of such
estimate. Any amount paid by Tenant based on any estimate shall be subject to
adjustment pursuant to Paragraph B below, when actual Taxes are determined for
the relevant Tax Year.

B. As soon as is practical following the end of any calendar year during the
Lease Term, Landlord shall furnish to Tenant a statement of Landlord's actual
Taxes for such previous calendar year. If the Additional Rent collected with
respect to such calendar year, as a result of Landlord's estimate of Taxes, is
in excess of Tenant's Pro Rata Share of Taxes for such prior year, then Landlord
shall refund to Tenant any overpayment (or at Landlord's option apply such
amount against Additional Rent due or to become due hereunder). Likewise, Tenant
shall pay to Landlord, on demand, any underpayment with respect to the prior
year whether or not this Lease has terminated prior to receipt by Tenant of a
statement for such underpayment, it being understood that this clause shall
survive the expiration of this Lease.

C. As used herein, "TAXES" shall mean (a) all real estate taxes and assessments
on the Property, the Building or the Premises, and taxes and assessments levied
in express substitution or supplementation in whole or in part of such taxes,
(b) all personal property taxes for the Building's personal property, including
license expenses, (c) all taxes, assessments or charges imposed upon the
Building by any business improvement district (BID) to which the Building is or
becomes subject during the Lease Term, and (d) all other taxes, fees or
assessments now or hereafter levied by any governmental authority on the
Property, the Building or its contents or on the operation and use thereof
(except as relate to specific tenants), but excluding penalties, late charges
for fines imposed against Landlord with respect to Taxes, any federal income
tax, New York State franchise tax or income tax, New York City general
corporation or

                                      C-1
<PAGE>   38

unincorporated business tax, or any estate, inheritance, succession, capital
stock, transfer mortgage recording taxes. Capital gains, gift or gross receipts
tax levied upon Landlord. Estimates of real estate taxes and assessments for any
calendar year during the Lease Term shall be determined based on Landlord's good
faith estimate of the real estate taxes and assessments. Taxes and assessments
hereunder are those accrued with respect to such calendar year, as opposed to
the real estate taxes and assessments paid or payable for such calendar year.

D. As used herein, "TAX YEAR" shall mean the fiscal tax year for the City of New
York, which begins on July 1 of each year and ends on June 30, of the following
year.

IN WITNESS WHEREOF, Landlord and Tenant have executed this exhibit as of the day
and year first above written.

                                    LANDLORD:
                                    TRANSWESTERN LEXINGTON, LLC

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

                                    TENANT:
                                    FUTURELINK CORP.

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

                                      C-2
<PAGE>   39

                                    EXHIBIT D

                                   WORK LETTER

This Exhibit is attached to and made a part of the Lease dated the 8th day of
August, 2000, by and between TRANSWESTERN LEXINGTON, LLC ("LANDLORD") and
FUTURELINK CORP. ("TENANT") for space in the Building located at 360 Lexington
Avenue, New York, New York.

Alterations and Allowance.

Tenant, following the delivery of the Premises by Landlord and the full and
final execution and delivery of this Lease and all prepaid Rent and security
deposits required hereunder, shall have the right to perform alterations and
improvements in the Premises (the "INITIAL ALTERATIONS"). Notwithstanding the
foregoing, Tenant and its contractors shall not have the right to perform
Initial Alterations in the Premises unless and until Tenant has complied with
all of the terms and conditions of Article 10.B. of this Lease, including,
without limitation, approval by Landlord of the final plans for the Initial
Alterations and the contractors to be retained by Tenant to perform such Initial
Alterations which approval shall not be unreasonably withheld or delayed. Tenant
shall be responsible for all elements of the design of Tenant's plans
(including, without limitation, compliance with law, functionality of design,
the structural integrity of the design, the configuration of the premises and
the placement of Tenant's furniture, appliances and equipment), and Landlord's
approval of Tenant's plans shall in no event relieve Tenant of the
responsibility for such design. Landlord's approval of the contractors to
perform the Initial Alterations shall not be unreasonably withheld or delayed.
The parties agree that Landlord's approval of the general contractor to perform
the Initial Alterations shall not be considered to be unreasonably withheld if
any such general contractor (i) does not have trade references reasonably
acceptable to Landlord, (ii) does not maintain insurance as required pursuant to
the terms of this Lease, (iii) does not have the ability to be bonded for the
work in an amount of no less than $1,000,000, or (iv) is not licensed as a
contractor in the state/municipality in which the Premises is located. Tenant
acknowledges the foregoing is not intended to be an exclusive list of the
reasons why Landlord may reasonably withhold its consent to a general
contractor.

Provided Tenant is not in default, Landlord agrees to contribute the sum of One
Hundred One Thousand Two Hundred Sixty Nine Dollars ($101,269.00) (the
"ALLOWANCE") toward the cost of performing the Initial Alterations in
preparation of Tenant's occupancy of the Premises. Eighty percent (80%) or more
of the Allowance shall be used for hard costs in connection with the Initial
Alterations. The Allowance, less a 10% retainage (which retainage shall be
payable as part of the final draw), shall be paid to Tenant or, at Landlord's
option, to the order of the general contractor that performs the Initial
Alterations, in periodic disbursements within thirty (30) days after receipt of
the following documentation: (i) an application for payment and sworn statement
of contractor substantially in the form of AIA Document G-702 covering all work
for which disbursement is to be made to a date specified therein; (ii) a
certification from a licensed architect substantially in the form of the
Architect's Certificate for Payment which is located on AIA Document G702,
Application and Certificate of Payment; (iii) Contractor's, subcontractor's and
material supplier's waivers of liens which shall cover all Initial Alterations
for which disbursement is being requested and all other statements and forms
required for compliance with the mechanics' lien laws of the State of New York,
together with all such invoices, contracts, or other supporting data as Landlord
or Landlord's Mortgagee may reasonably require; (iv) a cost breakdown for each
trade or subcontractor performing the Initial Alterations; (v) plans and
specifications for the Initial Alterations, together with a certificate from an
AIA architect that such plans and specifications comply in all material respects
with all applicable laws; (vi) copies of all construction contracts for the
Initial Alterations, together with copies of all change orders, if any; and
(vii) a request to disburse from Tenant containing an approval by Tenant of the
work done and a good faith estimate of the cost to complete the Initial
Alterations. Upon completion of the Initial Alterations, and prior to final
disbursement of the Allowance, Tenant shall furnish Landlord with: (1) general
contractor and architect's completion affidavits, (2) full and final waivers of
lien, (3) receipted bills covering all labor and materials expended and used,
(4) as-built plans of the Initial Alterations, and (5) the certification of
Tenant and its architect that the Initial Alterations have been installed in a
good and workmanlike manner in accordance with the approved plans, and in
accordance with

                                      D-1
<PAGE>   40

applicable laws, codes and ordinances. In no event shall Landlord be required to
disburse the Allowance more than one time per month. If the cost of Initial
Alterations as reasonably estimated by Tenant exceeds the Allowance, Tenant
shall be entitled to the Allowance in accordance with the terms hereof, but each
individual disbursement of the Allowance shall be disbursed in the proportion
that the Allowance bears to the total cost for the Initial Alterations, less the
10% retainage referenced above. Notwithstanding anything herein to the contrary,
Landlord shall not be obligated to disburse any portion of the Allowance during
the continuance of an uncured default under this Lease, and Landlord's
obligation to disburse shall only resume when and if such default is cured.

Up to twenty percent (20%) of the Allowance may be used for the cost of
preparing design and construction documents and mechanical and electrical plans
for the Initial Alterations and for the purchase of equipment, furniture or
other items of personal property of Tenant. In the event Tenant does not use the
entire Allowance by June 1, 2001, any unused amount shall accrue to the sole
benefit of Landlord, it being understood that Tenant shall not be entitled to
any credit, abatement or other concession in connection therewith. Tenant shall
be responsible for all applicable state sales or use taxes, if any, payable in
connection with the Initial Alterations and/or Allowance.

Tenant agrees to accept the Premises in its "as-is" condition and configuration,
it being agreed that Landlord shall not be required to perform any work or,
except as provided above with respect to the Allowance, incur any costs in
connection with the construction or demolition of any improvements in the
Premises.

This Exhibit shall not be deemed applicable to any additional space added to the
original Premises at any time or from time to time, whether by any options under
this Lease or otherwise, or to any portion of the original Premises or any
additions to the Premises in the event of a renewal or extension of the original
Term of this Lease, whether by any options under this Lease or otherwise, unless
expressly so provided in the Lease or any amendment or supplement to this Lease.

IN WITNESS WHEREOF, Landlord and Tenant have entered into this Exhibit as of the
date first written above.

                                    LANDLORD:
                                    TRANSWESTERN LEXINGTON, LLC

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

                                    TENANT:
                                    FUTURELINK CORP.

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

                                      D-2
<PAGE>   41

                                    EXHIBIT E

                               COMMENCEMENT LETTER

Date________________

Tenant______________
Address_____________
____________________

Re: Commencement Letter with respect to that certain Lease dated _________ by
and between Transwestern Lexington, LLC as Landlord and __________________, a(n)
__________ as Tenant for an Approximate Rentable Area in the Premises of
_________ square feet on the _________ floor of the Building located at 360
Lexington, New York, New York.

Dear _____________:

In accordance with the terms and conditions of the above referenced Lease,
Tenant hereby accepts possession of the premises and agrees as follows:

The Commencement Date of the Lease is _________________________;

The Termination Date of the Lease is ____________________________.

Landlord agrees to complete the work in the Premises identified in the punchlist
jointly prepared by Landlord and Tenant dated ________________.

Please acknowledge your acceptance of possession and agreement to the terms set
forth above by signing all three (3) copies of this Commencement Letter in the
space provided and returning two (2) fully executed copies of the same to my
attention.

Sincerely,

XXXXXXXXX
Property Manager

Agreed and Accepted:

TENANT:

By:__________________________________

Name:________________________________

Title:_______________________________

                                      E-1
<PAGE>   42

                                    EXHIBIT F

                              PORTER'S WAGE PAYMENT

This exhibit is attached to and made a part of the Lease dated August 8, 2000
by and between TRANSWESTERN LEXINGTON, LLC ("LANDLORD") and FUTURELINK CORP.,
a Delaware corporation ("TENANT") for space in the Building located at 360
Lexington Avenue, New York, New York.

A. Tenant shall pay to Landlord, as additional rent, a porter's wage rate
escalation in accordance with this EXHIBIT F.

B. For the purposes of this EXHIBIT F, the following definitions shall apply:

(i) "WAGE RATE" shall mean the minimum regular hourly rate of wages in effect as
of January 1st of each year (whether paid by Landlord or any contractor employed
by Landlord) computed as paid over a forty hour week to Porters in Class A
office buildings pursuant to an Agreement between the Realty Advisory Board on
Labor Relations, Incorporated, or any successor thereto, and Local 32B-32J of
the Building Service Employees International Union, AFL-CIO, or any successor
thereto; provided, however, that (A) if there is no such agreement in effect
prescribing a wage rate for Porters, computations and payments shall thereupon
be made upon the basis of the regular hourly wage rate actually payable in
effect as of January 1st of each year and (B) if in any year during the Lease
Term, the regular employment of Porters shall occur on days or during the hours
when overtime or other premium pay rates are in effect pursuant to such
Agreement, then the term "hourly rate of wages" as used herein shall be deemed
to mean the average hourly rate for the hours in a calendar week during which
Porters are regularly employed (e.g., if pursuant to an agreement between the
Realty Advisory Board and the Local the regular employment of Porters for forty
hours during a calendar week is at a regular hourly wage rate of $12.00 for the
first thirty hours, and premium or overtime hourly wage rate of $18.00 for the
remaining ten hours, then the hourly rate of wages under this Article during
such period shall be the total weekly rate of $540.00 divided by the total
number of regular hours of employment, forty, or $13.50). Notwithstanding the
foregoing, if at any time such hourly wage rate is different for new hire and
old hire Porters, then thereafter such hourly wage rate shall be based on the
weighted average of the wage rates for the different classifications of Porters.

(ii) "BASE WAGE RATE" shall mean the Wage Rate in effect on January 1, 2000.

(iii) The term "PORTERS" shall mean that classification of non-supervisory
employees employed in and about the Building who devote a major portion of their
time to general cleaning, maintenance and miscellaneous services essentially of
a non-technical and non-mechanical nature and are the type of employees who are
presently included in the classification of "Class A-Others" in the Commercial
Building Agreement between the Realty Advisory Board and the aforesaid Union.

(iv) The term "MINIMUM REGULAR HOURLY RATE OF WAGES" shall not include any
payments for fringe benefits or adjustments of any kind.

(v) The term "MULTIPLICATION FACTOR" shall mean the number of square feet in the
Approximate Rentable Area in the Premises, as the same may be increased or
decreased from time to time during the Lease Term pursuant to the provisions of
this Lease.

C. If the Wage Rate for any calendar year during the Lease Term shall be
increased above the Base Wage Rate, then Tenant shall pay, as Additional Rent,
an amount (such amount, the "PORTER'S WAGE PAYMENT") equal to the product
obtained by multiplying the Multiplication Factor by 100% of the number of cents
(including any fraction of a cent) by which the Wage Rate is greater than the
Base Wage Rate, such payment to be made in equal one-twelfth (1/12th) monthly
installments commencing with the first monthly

                                      F-1
<PAGE>   43

installment of Base Rent falling due on or after the effective date of such
increase in Wage Rate (payable retroactive from said effective date) and
continuing thereafter until a new adjustment shall have become effective in
accordance with the provisions of this Exhibit. Landlord shall give Tenant
notice of each change in Wage Rate which will be effective to create or change
Tenant's Porter's Wage Payment pursuant to the provisions of this EXHIBIT F and
such notice shall contain Landlord's calculation in reasonable detail and
certified as true by an authorized representative of Landlord or of its managing
agent, of the annual Porter's Wage Payment payable resulting from such increase
in Wage Rate. Such amounts shall be prorated for any partial calendar year
during the Lease Term.

D. Every notice given by Landlord pursuant to paragraph C hereof shall be
conclusive and binding upon Tenant, except for manifest error.

E. The "WAGE RATE" is intended to be a substitute comparative index of economic
costs and does not necessarily reflect the actual costs of wages or other
expenses of operating the Building. The Wage Rate shall be used whether or not
the Building is a Class A office building and whether or not Porters are
employed in the Building and without regard to whether such employees are
members of the Union referred to in paragraph A hereof.

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

                                    LANDLORD:
                                    TRANSWESTERN LEXINGTON, LLC

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

                                    TENANT:
                                    FUTURELINK CORP.

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

                                      F-2
<PAGE>   44

                                    EXHIBIT G

                             CLEANING SPECIFICATIONS

I. GENERAL OFFICE AREAS (TO BE PERFORMED NIGHTLY, MONDAYS TO FRIDAYS, EXCEPT
WEEKENDS AND BUILDING HOLIDAYS).

o    Sweep all applicable floors using chemically treated dust mops. Damp mop as
     necessary.

o    All carpeted areas and rugs to be vacuumed cleaned once per week and carpet
     swept nightly as necessary.

o    Hand dust with treated cloth and wipe clean all office furniture including
     desks, chairs, fixtures, file cabinets, window sills and radiator
     enclosures. Cleaning service shall not disturb paper on desks, file
     cabinets or other surfaces.

o    Dust all door and other ventilating louvers, damp wipe as necessary.

o    Wipe telephone receivers and mouthpieces clean with a disinfectant cleaner
     or damp cloth.

o    Collect and remove wastepaper, cardboard boxes (which must be left by the
     freight elevator marked TRASH). Any bulk rubbish will be considered EXTRA
     TRASH, the cleaning staff will not remove such items. Please call the
     Management Office to remove it at a cost to your company.

o    Remove all gum and foreign matter on sight.

o    Clean all water fountains and water coolers with germicidal cleanser and
     polish

o    Remove all fingerprints and smudges from private entrance doors, light
     switches and doorways.

o    Turn off all lights and lock all doors upon completion of cleaning leaving
     the premises in orderly condition, unless Tenant is still in the space.

II. BASE BUILDING LAVATORIES (TO BE PERFORMED NIGHTLY, MONDAYS TO FRIDAYS,
EXCEPT WEEKENDS AND BUILDING HOLIDAYS)

o    Scour, wash and disinfect all basins, pipes, bowls, urinals, toilet seats
     (both sides) and tile walls.

o    Sweep and wet mop nightly with a disinfectant all lavatory floors.

o    Wash and polish all mirrors, powder shelves, bright work, and enameled
     surfaces in all lavatories.

o    Hand dust and clean, washing where necessary, all partitions, dispensers
     and receptacles.

o    Empty, clean and disinfect sanitary disposal receptacles.

o    Fill all toilet tissue holders; soap dispensers and paper towel dispensers.

o    Remove fingerprint marks and scuff marks from painted and/or vinyl
     surfaces.

o    Machine scrub floors as necessary, but not less than once each month.

o    Clean and wash all lavatory partition walls and enamel surfaces once every
     month.

o    Hand dust clean and wash all tile walls and ceilings once each month or
     more if necessary.

o    Dust exterior of lighting fixtures monthly.

o    Furnish and install urinal screens.

                                      G-1
<PAGE>   45

III. GENERAL OFFICE AREAS - QUARTERLY CLEANING

o    Vacuum and dust all pictures, frames, charts, graphs and similar wall
     hangings not reached in nightly cleaning.

o    Vacuum and dust all vertical surfaces such as walls, partitions, doors,
     bucks, ventilating and air conditioning louvers, grills, high moldings and
     other surfaces not reached in nightly cleaning.

o    Dust all overhead pipes, sprinklers, ventilating and ducts not reached in
     nightly cleaning.

IV. EXTERMINATING SERVICES

o    All public areas, including public lobbies, hallways, restrooms, basement,
     mechanical equipment rooms, electrical and telephone closets, Loading
     Dock/Freight Entrance and Stairwells are to be kept under pest control
     treatment once per month.

V. PUBLIC HALLWAYS AND STAIRS

o    Clean all elevator doors, saddles, buttons, indicators and light fixtures.

o    Remove finger marks from painted/wallpapered/marble/wood and/or vinyl
     surfaces daily, dust and clean walls and doors.

o    Vacuum carpeted areas nightly.

o    Wash buff and apply sealer and finishers as required to non-carpeted
     floors. Machine scrub and reapply finish or sealer once every two months.

o    Check all stairways throughout building; sweep and mop weekly or as often
     as necessary or as requested by Agent.

o    High dust stairwell, lighting, sprinkler piping, electrical conduits, walls
     and stair railings on a monthly basis or as needed or requested by agent.

o    Wash stairway walls annually.

o    Shampoo all public hallway carpeting quarterly using the steam extraction
     method. Spot clean same as necessary.

The following are not included in the above mentioned base building cleaning:

o    ALL PRIVATE RESTROOMS/SHOWER ROOMS - CLEANING AND PAPER SUPPLIES

o    KITCHEN SINK, DISHES, COUNTER TOPS, ETC. - CLEANING AND PAPER SUPPLIES

                                      G-2<PAGE>   1

                                                                   EXHIBIT 10.50

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

                                FUTURELINK CORP.

                              MICROSOFT CORPORATION

                      SERIES A CONVERTIBLE PREFERRED STOCK
                               PURCHASE AGREEMENT

                                  JUNE 29, 2000

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

<PAGE>   2

                                FUTURELINK CORP.
                      SERIES A CONVERTIBLE PREFERRED STOCK
                               PURCHASE AGREEMENT

         This Agreement is made as of June 29, 2000, by and between FutureLink,
Inc., a Delaware corporation (the "Company"), and Microsoft Corporation, a
Washington corporation (the "Purchaser").

                                    RECITALS

         A. On June 28, 2000, the Company and the Purchaser entered into a
Commercial Agreement (the "Commercial Agreement"), a copy of which is attached
hereto as Exhibit A;

         B. The Company desires to sell to the Purchaser, and the Purchaser
desires to purchase from the Company, shares of the Company's Series A 8%
Convertible Redeemable Preferred Stock convertible into the Company's Common
Stock (the "Common Stock"), on the terms and conditions set forth in the
Certificate of Designation of Series A Convertible Preferred Stock in the form
attached as Exhibit C (the "Designation") and to grant to Purchaser a Preferred
Stock Purchase Warrant (the "Warrant") in the form attached as Exhibit B;

         NOW, THEREFORE, in consideration of the foregoing recitals, the mutual
promises hereinafter set forth, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

                                   AGREEMENTS

                                    SECTION 1
                      AUTHORIZATION AND SALE OF THE SHARES

         1.1 AUTHORIZATION OF THE SHARES; WARRANT.

                  (a) The Company has authorized, or before the Closing (as
defined in Section 2.1 below) will have authorized, a new series of preferred
stock, designated Series A 8% Convertible Preferred Stock (the "Series A
Preferred Stock"), such Series having the rights, preferences and privileges
provided for in the Designation. Without limiting the generality of the
foregoing, the Company and the Purchaser hereby agree that the dividend payable
by the Company with respect to the Series A Preferred is payable in accordance
with Section 3 of the Designation attached hereto as Exhibit C.

                  (b) In addition, prior to the Closing, the Company will have
authorized the issuance and sale to the Purchaser of an aggregate of One Million
Four Hundred Twenty-Eight Thousand Five Hundred Seventy One (1,428,571) shares
(the "Shares") of the Series A Preferred Stock and the Warrant, which shall
entitle the holder thereof to purchase One Million One Hundred Forty-Two
Thousand Eight Hundred Fifty-Seven (1,142,857) shares of Preferred Stock at an
exercise price of Seven Dollars ($7.00) per share, for an aggregate purchase
price of Ten Million Dollars ($10,000,000) (the "Purchase Price").

<PAGE>   3

         1.2 SALE OF SHARES AND WARRANT. Subject to the terms and conditions
hereof, at the Closing specified in Section 2.1 below, the Company will issue
and sell the Shares and the Warrant to the Purchaser, and the Purchaser will
purchase such Shares and the Warrant from the Company. The Common Stock of the
Company issued or issuable upon conversion of the Shares, including all shares
of Common Stock issuable in the event the Company pays dividends on the Shares
in additional shares of Series A Preferred Stock or Common Stock, or the
exercise or conversion of the Warrant is referred to as the "Conversion Stock."
The Shares, the Conversion Stock and any other securities issued or issuable in
respect of the Shares are sometimes collectively referred to as the
"Securities."

                                    SECTION 2
                             CLOSING DATE; DELIVERY

         2.1 CLOSING DATE. The purchase and sale of the Shares and the Warrant
shall occur at a closing (the "Closing") to be held at such time as shall be
designated by the Company by written notice and agreed to by the Purchaser (the
"Closing Date"). The Closing will take place at the offices of the Purchaser in
Redmond, Washington or at such other place as agreed to by the Purchaser and the
Company.

         2.2 DELIVERY. At the Closing, the Company shall deliver to the
Purchaser a certificate, registered in Purchaser's name and representing the
Shares, and the Warrant against delivery to the Company of a check or wire
transfer payable to the order of the Company in the amount of Ten Million
Dollars ($10,000,000). The Shares shall be delivered free of any claims or liens
or encumbrances.

                                    SECTION 3
                     COMPANY REPRESENTATIONS AND WARRANTIES

         Except as disclosed in (a) the Schedule of Exceptions to the
representations and warranties of the Company attached hereto as Exhibit D, with
respect to the sections referenced therein, (b) with respect to Sections
3.6-3.14 only, the Financial Statements (as defined herein), (c) with respect to
Sections 3.6-3.14 only any filings made by the Company with the Securities and
Exchange Commission (the "SEC Filings"), or (d) with respect to Sections
3.6-3.14 only, the SEC Reports (as defined herein), the Company represents and
warrants to the Purchaser as set forth in this Section 3.

         3.1 ORGANIZATION AND STANDING. Each of the Company and its subsidiaries
(i) is a corporation duly organized and validly existing under the laws of its
respective jurisdiction of incorporation and is in good standing as a domestic
corporation under the laws of said state, (ii) has all requisite corporate power
and authority to own and lease its properties and to conduct its business as
presently conducted, and, (iii) is duly qualified or licensed to do business as
a foreign corporation in good standing in each jurisdiction in which the nature
of its business or its ownership or leasing of property requires such
qualification, except where the failure to be so qualified does not and is not
reasonably expected to (x) individually or in the aggregate, have a material
adverse effect on the properties, business, results of operations, condition
(financial or

                                      -2-
<PAGE>   4

otherwise), affairs or prospects of the Company and its subsidiaries, taken as a
whole, (y) interfere with or impair the Company's ability to perform its
obligations under this Agreement, the Commercial Agreement or the Warrant, or
(z) interfere with or prevent the consummation of any of the transactions
contemplated by said instruments (any of the events set forth in clauses (x),
(y) or (z), a "Material Adverse Effect").

         3.2 CORPORATE POWER. The Company has all requisite legal and corporate
power to execute and deliver this Agreement and the Commercial Agreement, to
sell and issue the Shares and the Warrant hereunder, to issue the Conversion
Stock issuable upon conversion of the Shares and exercise or conversion of the
Warrant, and to carry out and perform its obligations under the terms of this
Agreement.

         3.3 CAPITALIZATION. The authorized capital stock of the Company upon
the filing of the Designation with the Secretary of State of the State of
Delaware will consist of (a) 300,000,000 shares of Common Stock, of which
61,560,666 shares were issued and outstanding as of June 26, 2000, and (b)
20,000,000 shares of Preferred Stock of which 2,571,428 shares have been
designated Series A Preferred, 1,428,571 of which will be sold to the Purchaser
at the Closing. All of the outstanding shares of Common Stock have been, and all
of the shares of Series A Preferred Stock, when issued and sold at the Closing
will be, validly issued, fully paid and nonassessable, free of any liens or
encumbrances. The Series A Preferred Stock shall have the rights, preferences,
privileges and restrictions set forth in the Designation. No subscription,
warrant, option or other right to purchase or acquire any shares of any class of
capital stock of the Company or securities convertible into or exchangeable for
such capital stock are outstanding other than as set forth in the Schedule of
Exceptions.

         3.4 AUTHORIZATION. The execution, delivery and performance of this
Agreement, the Commercial Agreement and the Warrant by the Company have been
duly authorized by all requisite corporate action. This Agreement, the
Commercial Agreement, the Investor Rights Agreement (defined below) and the
Warrant constitute valid and binding obligations of the Company enforceable in
accordance with their respective terms, subject to laws of general application
relating to bankruptcy, insolvency and the relief of debtors, and rules of law
governing specific performance, injunctive relief or other equitable remedies.
The issuance and sale of the Shares will not give rise to any preemptive rights
or rights of first refusal on behalf of any person in existence on the date
hereof.

         3.5 CONVERSION STOCK. The Conversion Stock (i) has been duly and
validly reserved for issuance, (ii) is not subject to preemptive or any other
similar rights of stockholders of the Company, and (iii) when issued in
accordance with the terms of the Designation or the Warrant, will be validly
issued and outstanding, fully paid and nonassessable, and free of any liens or
encumbrances, other than liens or encumbrances created by or imposed upon the
holders through no action of the Company.

         3.6 ACCURACY OF REPORTS. All reports (the "SEC Reports") required to be
filed by the Company during the period from January 1, 1999 to the date of this
Agreement under the Securities Exchange Act of 1934, as amended (the "Exchange
Act"), have been duly filed, complied in all material respects with the Exchange
Act and the requirements of their respective

                                      -3-
<PAGE>   5

forms (as of their respective filing dates), were complete and correct in all
material respects as of the dates at which the information was furnished, and
none contained (as of their respective dates of filing) any untrue statement of
a material fact nor omitted to state a material fact necessary in order to make
the statements made therein, in light of the circumstances in which made, not
misleading. Except to the extent that information contained in any SEC Report
has been revised or superseded by a later filed SEC Report, none of the SEC
Reports contains any untrue statement of a material fact or omits to state any
material fact required to be stated therein or necessary in order to make the
statements therein, in light of the circumstances under which they were made,
not misleading.

         3.7 FINANCIAL STATEMENTS AND CHANGES. Since January 1, 1998, the
financial statements of the Company included in the SEC Reports (the "Financial
Statements") comply as to form in all material respects with applicable
accounting requirements and the published rules and regulations of the SEC with
respect thereto, have been prepared in accordance with U.S. generally accepted
accounting principles ("GAAP") (except, in the case of unaudited statements as
permitted by Form 10-Q of the SEC) applied on a consistent basis during the
periods involved (except as may be indicated in the notes thereto) and fairly
present the consolidated financial position of the Company and its consolidated
subsidiaries as of the dates thereof and the consolidated results of their
operation and cash flows (or changes in financial position prior to the approval
of Financial Accounting Standards Board Statement of Financial Accounting
Standards No. 95) for the periods then ending in accordance with GAAP (subject,
in the case of the unaudited statements, to normal year end audit adjustments).
Except as set forth in the filed SEC Reports, neither the Company nor any of its
subsidiaries has any liabilities or obligations of any nature (whether accrued,
absolute, contingent or otherwise) required by GAAP to be set forth on a
consolidated balance sheet of the Company and its consolidated subsidiaries or
in the notes thereto and which could reasonably be expected to have a Material
Adverse Effect.

         Except as otherwise disclosed herein, in the Financial Statements, the
SEC Filings, the SEC Reports or the Schedule of Exceptions, since January 1,
1999, there has not been:

                  (a) Any material change in the assets, liabilities, financial
condition, business or results of operations of the Company from that reflected
in the Financial Statements except changes in the ordinary course of business
which do not, either in any individual case or in the aggregate, constitute a
Material Adverse Effect;

                  (b) Any change in the contingent obligations of the Company,
whether by way of guaranty, endorsement, indemnity, warranty or otherwise,
except such changes as do not, either individually or in the aggregate,
constitute a Material Adverse Effect;

                  (c) Any damage, destruction or loss, whether or not covered by
insurance, which could reasonably be expected to have a Material Adverse Effect;

                  (d) Any declaration or payment of any dividend or other
distribution of the assets or securities of the Company in respect of
outstanding Common Stock; or

                                      -4-
<PAGE>   6

                  (e) Any other event or condition of any character that has
materially and adversely affected, or that could reasonably be expected to have
a Material Adverse Effect.

         3.8 NO CONFLICT. The provisions of the Designation do not constitute
any violation, or conflict with or constitute a default under, any indenture,
mortgage, deed of trust or other agreement, instrument, court order, judgment,
decree, statute, rule or regulation (each a "Term" and collectively the "Terms")
to which the Company is a party or by which it is bound, subject to such
exceptions as would not have a Material Adverse Effect. The execution, delivery
and performance of and compliance with this Agreement and the Commercial
Agreement, the issuance of the Securities pursuant to the terms hereof and the
performance of the Company's obligations hereunder and thereunder (i) will not
result in any violation or be in conflict with or constitute a default under any
Term, (ii) will not result in the creation of any mortgage, pledge, lien,
encumbrance or charge upon any of the properties or assets of the Company
pursuant to any such Term, and (iii) will not conflict with or violate any
applicable law, rule, regulation, judgment, order or decree of any government,
governmental instrumentality or court having jurisdiction over the Company or
any of its assets or properties, subject to such exceptions as would not have a
Material Adverse Effect.

         3.9 GOVERNMENTAL CONSENTS. No consent, approval or authorization of, or
designation, declaration or filing with, any Federal or state governmental
authority in the United States is required on the part of the Company in
connection with the valid execution and delivery of this Agreement and the
Commercial Agreement, the offer, sale or the issuance of the Securities or the
consummation of any other transaction contemplated hereby, except (i) the filing
of the Designation in the office of the State of Delaware, which will be
completed prior to the Closing, (ii) if required, qualifications or filings in
connection with exemptions under any applicable state "blue sky" laws and
Federal securities laws, which qualifications or exemptions, if required, will
have been obtained and will be effective on the Closing Date, or will be
obtained or filed after the Closing Date within the prescribed time in order to
secure such exemptions or qualifications, and (iii) where the failure to obtain
any required consent, approval, authorization or designation or to make any
required declaration or filing does not and is not reasonably expected to have a
Material Adverse Effect.

         3.10 PATENTS, TRADEMARKS, ETC. The Company, to the best of its
knowledge, owns or has the right, or prior to the Closing will own or have the
right, to use all patents, trademarks, service marks, trade names, copyrights,
licenses and rights necessary to its business as now conducted, and, to the best
of its knowledge, is not infringing upon any person under or with respect to any
of the foregoing. The Company has not received any written communications
alleging that the Company has violated any patent, trademark, service mark,
trade name, copyright or trade secret or other proprietary right of any other
person or entity, subject to such exceptions as would not have a Material
Adverse Effect. The Company is not aware that any of its employees is obligated
under any contract (including licenses, covenants or commitments of any nature)
or other agreement, or subject to any judgment, decree or order of any court or
administrative agency, that would materially interfere with the Company's
employment of such employees. Neither the execution nor delivery of this
Agreement or the Commercial Agreement, nor the carrying on of the Company's
business by the employees of the Company will conflict with or result in a
breach of the terms, conditions or provisions of, or constitute a default under,

                                      -5-
<PAGE>   7

any contract, covenant or instrument under which any of such employees is now
obligated. The Company does not believe it is necessary to utilize any
inventions of any of its employees made prior to their employment by the
Company, other than those inventions for which the intellectual property
relating thereto previously has been assigned to the Company.

         3.11 LITIGATION. There is no suit, action or proceeding pending or
affecting the Company or any of its subsidiaries that, individually or in the
aggregate, could have a Material Adverse Effect, nor is there any judgment,
decree, injunction, rule or order of any governmental entity or arbitrator
outstanding against the Company or any of its subsidiaries having, or which,
could reasonably be expected to have, any such effect.

         3.12 COMPLIANCE WITH LAWS. The Company is not in violation of any
applicable statute, rule, regulation, order or restriction of any domestic or
foreign government or any instrumentality or agency thereof in respect of the
conduct of its business or the ownership of its properties which could
reasonably be expected to have a Material Adverse Effect.

         3.13 OFFERING OF SECURITIES. Neither the Company nor any person acting
on its behalf has taken or will take any action (including, without limitation,
any offering of any securities of the Company under circumstances which would
require, under the Securities Act of 1933, as amended (the "Securities Act"),
the integration of such offering with the offering and sale of the Securities)
which might subject the offering, issuance or sale of the Securities to the
registration requirements of Section 5 of the Securities Act.

         3.14 NO MATERIAL ADVERSE EFFECT. Since the date of the most recent
audited balance sheet of the Company contained in the SEC Reports, there has
been no event or condition resulting in a Material Adverse Effect on the
Company.

                                    SECTION 4
                  PURCHASER REPRESENTATIONS AND WARRANTIES AND
             RESTRICTIONS ON TRANSFER IMPOSED BY THE SECURITIES ACT

         Except as disclosed in the Schedule of Exceptions to Representations
and Warranties of the Purchaser attached hereto as Exhibit D-1, the Purchaser
represents and warrants to the Company with respect to the Shares, as follows:

         4.1 INVESTMENT INTENT.

                  (a) Purchaser has substantial experience in business and
financial matters and is capable of evaluating the merits and risks of its
investment in the Company and is able to bear the economic risks of its
investment.

                  (b) Purchaser is an "accredited investor" as defined in Rule
501(a)(3) of Regulation D of the Securities Act.

                  (c) Purchaser is acquiring the Securities for investment for
its own account and not with a view to, or for resale in connection with, any
distribution thereof. Purchaser

                                      -6-
<PAGE>   8

understands that the Securities have not been registered under the Securities
Act by reason of a specific exemption from the registration provisions of the
Securities Act which depends upon, among other things, the bona fide nature of
the investment intent as expressed herein.

                  (d) Purchaser acknowledges that the Securities must be held
indefinitely unless subsequently registered under the Securities Act or an
exemption from such registration is available. Purchaser is aware of the
provisions of Rule 144 promulgated under the Securities Act ("Rule 144") which
permit limited resale of securities purchased in a private placement subject to
the satisfaction of certain conditions, including the existence of a public
market for the shares, the availability of certain current public information
about the Company, the resale occurring not less than one year after a party has
purchased and paid for the security to be sold, the sale being through a
"broker's transaction" or in a transaction directly with a "market maker" (as
provided by Rule 144(f)) and the number of shares being sold during any
three-month period not exceeding specified limitations.

         4.2 CORPORATE POWER. Purchaser has all requisite legal and corporate
power to execute and deliver this Agreement and the Commercial Agreement and to
carry out and perform its obligations under the terms of this Agreement and the
Commercial Agreement.

         4.3 AUTHORIZATION. The execution, delivery and performance of this
Agreement and the Commercial Agreement by the Purchaser has been duly authorized
by all requisite corporate action, and this Agreement and the Commercial
Agreement constitutes valid and binding obligations of Purchaser enforceable in
accordance with its terms, subject to laws of general application relating to
bankruptcy, insolvency and the relief of debtors, and rules of law governing
specific performance, injunctive relief or other equitable remedies.

         4.4 GOVERNMENTAL CONSENTS. No consent, approval or authorization of, or
designation, declaration or filing with, any federal or state governmental
authority in the United States is required on the part of Purchaser in
connection with the valid execution and delivery of this Agreement and the
Commercial Agreement or the consummation of any other transaction contemplated
hereby or thereby, except for such filings as may be required under the Exchange
Act and the related rules and regulations thereunder subsequent to the issuance
of the Shares.

                                    SECTION 5
                              CONDITIONS TO CLOSING

         5.1 CONDITIONS TO PURCHASER'S OBLIGATIONS. The obligation of the
Purchaser to purchase the Shares at the Closing is subject to the fulfillment to
the reasonable satisfaction of the Purchaser on or prior to the Closing Date of
the following conditions any of which may be waived in whole or in part by the
Purchaser:

                  (a) The representations and warranties made by the Company in
Section 3 hereof shall be true and correct in all material respects when made,
and shall be true and correct in all material respects on the Closing Date;

                                      -7-
<PAGE>   9

                  (b) All covenants, agreements and conditions contained in this
Agreement to be performed by the Company on or prior to the Closing Date shall
have been performed or complied with in all material respects;

                  (c) The Purchaser shall have received from Paul, Hastings,
Janofsky & Walker, counsel to the Company, an opinion addressed to the
Purchaser, dated the Closing Date, in substantially the form attached hereto as
Exhibit E;

                  (d) The Company shall have delivered to the Purchaser a
certificate, executed on the Company's behalf by the Chief Executive Officer or
Chief Financial Officer of the Company, dated the Closing Date and certifying to
the fulfillment of the conditions specified in paragraphs (a) and (b) of this
Section 5.1 in the form attached hereto as Exhibit F;

                  (e) The Company shall have entered into the Commercial
Agreement in substantially the form attached hereto as Exhibit A;

                  (f) The Company shall have executed and delivered to Purchaser
the Warrant substantially in the form attached hereto as Exhibit B;

                  (g) The Company shall have entered into the Investor Rights
Agreement with Purchaser dated the date hereof in substantially the form
attached hereto as Exhibit G (the "Investor Rights Agreement");

                  (h) The Company shall have obtained all necessary state "blue
sky" law permits and qualifications, or have the availability of exemptions
therefrom, required by any state for the offer and sale of the Securities;

                  (i) The Designation shall have been filed with and accepted by
the Delaware Secretary of State;

                  (j) All material matters of a legal nature which pertain to
this Agreement, and the transactions contemplated hereby, shall have been
approved by counsel to the Purchaser; and

                  (k) No action shall have been taken and no statute, rule,
regulation or order shall have been enacted, promulgated or issued or deemed
applicable to the proposed transactions by any legislature, administrative
agency, court or other governmental authority which would make consummation of
the proposed transactions pursuant to this Agreement illegal or render the
Company or the Purchaser unable to consummate the proposed transactions nor
shall there have been filed any proceeding in a court of competent jurisdiction
seeking to enjoin or restrain the transactions contemplated by this Agreement.

                  (l) The Company shall have delivered to Purchaser waivers or
consents from all governmental authorities or other parties necessary to
consummation of the transactions contemplated hereby, including waivers of those
rights of third parties described in Section 3.4 of the Schedule of Exceptions
of Company, in a form reasonably acceptable to Purchaser.

                                      -8-
<PAGE>   10

                  (m) The Shares and Conversion Stock shall be free of any
claims or liens or encumbrances.

         5.2 CONDITIONS TO COMPANY'S OBLIGATIONS. The Company's obligation to
sell and issue the Shares to the Purchaser at the Closing is subject to the
fulfillment to the Company's reasonable satisfaction on or prior to the Closing
Date of the following conditions, any of which may be waived in whole or in part
by the Company:

                  (a) The representations and warranties made by the Purchaser
in Section 4 hereof shall be true and correct in all material respects when
made, and shall be true and correct in all material respects on the Closing
Date;

                  (b) All covenants, agreements and conditions contained in this
Agreement to be performed by the Purchaser on or prior to the Closing Date shall
have been performed or complied with in all material respects;

                  (c) The Purchaser shall have delivered to the Company a
certificate executed on the Purchaser's behalf by an executive officer of the
Purchaser, dated as of the Closing Date and certifying to the fulfillment of the
conditions specified in paragraphs (a) and (b) of this Section 5.2 in the form
attached hereto as Exhibit H;

                  (d) The Purchaser shall have entered into the Commercial
Agreement in substantially the form attached hereto as Exhibit A;

                  (e) The Designation shall have been filed with the Delaware
Secretary of State;

                  (f) All material matters of a legal nature which pertain to
this Agreement, and the transactions contemplated hereby, shall have been
approved by counsel to the Company which approval will not be unreasonably
withheld or delayed; and

                  (g) No action shall have been taken and no statute, rule,
regulation or order shall have been enacted, promulgated or issued or deemed
applicable to the proposed transactions by any legislature, administrative
agency, court or other governmental authority which would make consummation of
the proposed transactions pursuant to this Agreement illegal or render the
Company or the Purchaser unable to consummate the proposed transactions nor
shall there have been filed any proceeding in a court of competent jurisdiction
seeking to enjoin or restrain the transactions contemplated by this Agreement.

                                    SECTION 6
                                    COVENANTS

         6.1 REASONABLE BEST EFFORTS. Subject to the terms and conditions
provided in this Agreement, each of the parties hereto shall use commercially
reasonable best efforts to promptly take, or cause to be taken, all actions, and
to promptly do, or cause to be done, all things necessary, proper or advisable
under applicable laws and regulations to consummate and make

                                      -9-
<PAGE>   11

effective the transactions contemplated hereby, to obtain all necessary waivers,
consents and approvals and to effect all necessary registrations and filings and
to remove any injunctions or other impediments or delays, legal or otherwise, in
order to consummate and make effective the transactions contemplated by this
Agreement for the purpose of securing to the parties hereto the benefits
contemplated by this Agreement.

         6.2 ADDITIONAL DOCUMENTS AND FURTHER ASSURANCES. Each party hereto, at
the request of the other party hereto, shall execute and deliver such other
instruments and do and perform such other acts and things as may be necessary or
desirable for effecting completely the consummation of this Agreement and the
transactions contemplated hereby.

                                    SECTION 7
                                  MISCELLANEOUS

         7.1 PUBLIC ANNOUNCEMENTS. The Company shall obtain the consent of the
Purchaser and the Purchaser shall obtain the consent of the Company prior to any
public announcement relating to this Agreement, provided that the Company shall
be permitted to make any public announcement which is required pursuant to the
Securities Act or the Exchange Act or the rules or regulations thereunder;
provided, however, that the Company shall, upon Purchaser's request, seek
confidential treatment of such materials or information that the Purchaser may
reasonably designate.

         7.2 FINDER'S FEE.

                  (a) The Company (i) represents and warrants that the Company
has retained no finder or broker in connection with the transactions
contemplated by this Agreement, and (ii) hereby agrees to indemnify and to hold
the Purchaser harmless of and from any liability for commission or compensation
in the nature of a finder's fee to any broker or other person or firm (and the
costs and expenses of defending against such liability or asserted liability)
for which the Company, or any of its employees or representatives, is
responsible.

                  (b) The Purchaser (i) represents and warrants that the
Purchaser has retained no finder or broker in connection with the transactions
contemplated by this Agreement, and (ii) hereby agrees to indemnify and to hold
the Company harmless of and from any liability for any commission or
compensation in the nature of a finder's fee to any broker or other person or
firm (and the costs and expenses of defending against such liability or asserted
liability) for which the Purchaser, or any of its employees or representatives,
is responsible.

         7.3 DELAYS OR OMISSIONS. No delay or omission to exercise any right,
power or remedy accruing to the Company or the Purchaser, upon any breach or
default under this Agreement, shall impair any such right, power or remedy, nor
shall it be construed to be a waiver of any such breach or default, or any
acquiescence therein, or of any similar breach or default thereafter occurring;
nor shall any waiver of any single breach or default be deemed a waiver of any
other breach or default theretofore or thereafter occurring. Any waiver, permit,
consent or approval of any kind or character by the Company or the Purchaser of
any breach or default under this Agreement, or any waiver by the Company or the
Purchaser of any provisions or

                                      -10-
<PAGE>   12

conditions of this Agreement, must be in writing and shall be effective only to
the extent specifically set forth in writing, and all remedies, either under
this Agreement, or by law or otherwise afforded to the Company or the Purchaser,
shall be cumulative and not alternative.

         7.4 WAIVERS AND AMENDMENTS. The obligations and rights of the Company
and the Purchaser under this Agreement may be waived or this Agreement may be
amended upon the written consent of the Company and the Purchaser. This
Agreement and the provisions hereof may not be waived or amended except pursuant
to a written instrument signed by the required party or parties as aforesaid.

         7.5 SEVERABILITY. In the event that any provision of this Agreement
shall be deemed to be invalid, illegal or unenforceable, the validity, legality
and enforceability of the remaining provisions hereof shall not in any way be
affected or impaired thereby.

         7.6 SURVIVAL. The representations, warranties, covenants and agreements
made herein shall survive any investigation made by Purchaser and the Company
and shall survive the Closing of the transactions contemplated hereby for a
period of one year.

         7.7 SUCCESSORS AND ASSIGNS. Except as otherwise expressly provided
herein, the provisions hereof shall inure to the benefit of, and be binding
upon, the successors, assigns, heirs, executors and administrators of the
parties hereto.

         7.8 NOTICES, ETC. All notices and other communications required or
permitted hereunder shall be in writing and shall be delivered (i) personally,
(ii) by facsimile transmission with written confirmation (other than the
automatic confirmation that is received from the recipient's facsimile machine)
of receipt by the recipient of such notice, or (iii) by a nationally recognized
overnight courier, in each case with all delivery or postal charges pre-paid.
Notices shall be addressed (i) if to the Purchaser, at the Purchaser's address
as set forth on the signature page of this Agreement, Attention: Chief Financial
Officer and Deputy General Counsel, Finance and Operations, (Fax (425)
936-7329), with a copy to Richard Dodd at Preston Gates & Ellis LLP, 5000
Columbia Center, 701 Fifth Avenue, Seattle, WA 98104-7078 (Fax (206) 623-7022),
(ii) if to any permitted transferee of Series A Preferred hereunder, then to
Purchaser's address or such other address as the transferee shall furnish to the
Company in writing pursuant to the provisions hereof, or (iii) if to the
Company, at the Company's address set forth on the signature page of this
Agreement, Attention: Chief Financial Officer and General Counsel (Fax (215)
658-1872), with copy to the attention of Thomas Pollock, Paul, Hasting, Janofsky
& Walker, 345 California Street, San Francisco, CA 94104-2635 (Fax (415)
217-5333) or at such other address as the Company shall have furnished to the
Purchaser (or transferees, as aforesaid) in writing.

         Each such notice or communication, addressed and posted as aforesaid,
shall for all purposes of this Agreement be treated as effective or having been
given (i) when delivered, if delivered personally, (ii) the business day on
which the notice or communication is sent, if delivered by facsimile
transmission as provided above, or (iii) upon the earlier of its receipt or two
(2) business days after the business day of deposit with a nationally recognized
overnight courier, if delivered by such means.

                                      -11-
<PAGE>   13

         7.9 ENTIRE AGREEMENT. This Agreement, the Commercial Agreement and the
other documents delivered pursuant hereto constitute the full and entire
understanding and agreement among the parties with regard to the subjects hereof
and thereof, and supersede any and all prior agreements and understandings among
the parties.

         7.10 GOVERNING LAW. This Agreement shall be governed by and construed
and enforced in accordance with the laws of the State of Washington as they
apply to contracts entered into and wholly to be performed within such state,
and without reference to its principles of conflicts of law or choice of law.

         7.11 EXPENSES. The Company and the Purchaser shall each bear all
expenses that such respective party has incurred or incurs in connection with
this Agreement and the transactions contemplated hereby, and any amendments or
waivers hereto.

         7.12 ATTORNEYS' FEES. In the event of any litigation in a court of
competent jurisdiction arising in connection with this Agreement and the
transactions contemplated hereby, the prevailing party in judgment shall be
entitled to recover reasonable legal fees and costs in connection with such
action including any appeals.

         7.13 TITLES AND SUBTITLES. The titles of the Sections and subsections
of this Agreement are for convenience of reference only and are not to be
considered in construing this Agreement.

         7.14 COUNTERPARTS. This Agreement may be executed in any number of
counterparts, each of which shall be an original and all of which together shall
constitute one instrument.

                                      -12-
<PAGE>   14

         IN WITNESS WHEREOF, the parties have caused this Agreement to be duly
executed and delivered by their proper and duly authorized officers as of the
day and year first written above.

                                        COMPANY

                                        FUTURELINK CORP., a Delaware corporation

                                        By: /s/ PHILIP R. LADOUCEUR
                                           -------------------------------------
                                        Name: Philip R. Ladouceur
                                             -----------------------------------
                                        Title: Chairman and CEO
                                              ----------------------------------

                                        Address: 6 Morgan, Suite 100
                                                 Irvine, CA  92618

                                        PURCHASER

                                        MICROSOFT CORPORATION, a Washington
                                        corporation

                                        By: /s/ AMAR NEHRU
                                           -------------------------------------
                                                        Amar Nehru
                                           Vice President, Corporate Development

                                        Address: One Microsoft Way
                                                 Redmond, WA  98052

                                      -13-
<PAGE>   15

                                    EXHIBITS

Exhibit A   - Commercial Agreement
Exhibit B   - Form of Warrant
Exhibit C   - Certificate of Designation of Series A Convertible Preferred Stock
Exhibit D   - Schedule of Exceptions
Exhibit D-1 - Schedule of Purchaser Exceptions
Exhibit E   - Legal Opinion of Paul, Hastings, Janofsky & Walker
Exhibit F   - Form of FutureLink Compliance Certificate
Exhibit G   - Form of Investor Rights Agreement
Exhibit H   - Form of Purchaser Compliance Certificate

                                      -14-
<PAGE>   16

                                   EXHIBIT D-1

                        Schedule of Purchaser Exceptions

Such filings as maybe required by the Hart-Scott-Rodino Antitrust Improvements
Act of 1976, as amended, and similar filings required by the merger notification
or control laws of any applicable jurisdiction upon the exercise of the Warrant.

                                      -15-

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