Document:

<PAGE>   1

                                                                   Exhibit 10.34

                              INDUSTRIAL NET LEASE

                                       FOR

                         SORRENTO VISTA INDUSTRIAL PARK
                              SAN DIEGO, CALIFORNIA

                                 BY AND BETWEEN

                            SPIEKER PROPERTIES, L.P.
                        A CALIFORNIA LIMITED PARTNERSHIP

                                   AS LANDLORD

                                       AND

                                  INTUIT INC.,
                             A DELAWARE CORPORATION

                                    AS TENANT

<PAGE>   2

                            BASIC LEASE INFORMATION

<TABLE>
<S>                                   <C>
LEASE DATE:                           JULY 2, 1997

ADDRESS OF PREMISES:                  6060 NANCY RIDGE DRIVE, SUITE 100
                                      SAN DIEGO, CA 92121

TENANT:                               INTUIT INC.,
                                      A DELAWARE CORPORATION

ADDRESS OF TENANT:                    6220 GREENWICH DRIVE
                                      SAN DIEGO, CA 92122
                                      ATTENTION: FACILITIES MANAGER, LYNETTE BERGAMINI
                                      PHONE: (619)784-4000
                                      FAX: (619)784-1389
                                      with additional notices to:
                                      General Counsel-Catherine Valentine
                                      mailing address: P.O. Box 7850
                                      Mountain View, CA 94039
                                      physical address: 2535 Garcia Avenue
                                      Mountain View, CA 94043
                                      phone: (415)944-6656
                                      fax: (415)944-6622
                                      and to the Premises. Attention Dan Torres, Manager

LANDLORD:                             SPIEKER PROPERTIES, L.P.,
                                      A CALIFORNIA LIMITED PARTNERSHIP

ADDRESS OF LANDLORD:                  9255 TOWNE CENTRE DRIVE, SUITE 100
                                      SAN DIEGO, CA 92121
                                      PHONE: (619)453-5800
                                      FAX: (619)623-8506

PROJECT DESCRIPTION:                  AN APPROXIMATELY 228,130 SQUARE FOOT, TWO BUILDING
                                      INDUSTRIAL PROJECT LOCATED IN SAN DIEGO, CALIFORNIA
                                      AND COMMONLY KNOWN AS SORRENTO VISTA INDUSTRIAL
                                      PARK AS SHOWN ON EXHIBIT "A", ATTACHED HERETO.

BUILDING DESCRIPTION:                 AN APPROXIMATELY 121,700 SQUARE FOOT BUILDING
                                      LOCATED AT 6060 NANCY RIDGE DRIVE, SAN DIEGO,
                                      CALIFORNIA AS SHOWN ON EXHIBIT "B" ATTACHED HERETO.

PREMISES:                             APPROXIMATELY 60,585 SQUARE FEET OF OFFICE AND
                                      WAREHOUSE SPACE LOCATED IN THE BUILDING AS SHOWN ON
                                      EXHIBIT "B" ATTACHED HERETO.

PERMITTED USES:                       GENERAL OFFICE, WAREHOUSING, MANUFACTURING AND
                                      DISTRIBUTION AND FOR NO OTHER USE, AS ALLOWED UNDER
                                      EXISTING ZONING.

PARKING:                              TENANT IS ENTITLED TO 1.47 UNASSIGNED PARKING STALLS
                                      PER 1,000 SQUARE FEET LEASED, WHICH IS APPROXIMATELY
                                      89 PARKING SPACES.

SCHEDULED TERM COMMENCEMENT DATE:     OCTOBER 1,1997.

LENGTH OF TERM:                       SEVENTY-TWO (72) MONTHS.

BASE RENT:                            OCTOBER 1, 1997-SEPTEMBER 30, 1998    $33,745/MO
                                      OCTOBER 1, 1998-SEPTEMBER 30, 1999    $35,170/MO
                                      OCTOBER 1, 1999-SEPTEMBER 30, 2000    $36,645/MO
                                      OCTOBER 1, 2000 SEPTEMBER 30, 2001    $38,195/MO
                                      OCTOBER 1, 2001-SEPTEMBER 30, 2002    $39,820/MO
                                      OCTOBER 1, 2002-SEPTEMBER 30, 2003    $41,500/MO

SECURITY DEPOSIT:                     $15,000 DUE UPON LEASE EXECUTION.

TENANT'S PROPORTIONATE SHARE:         49.78% OF BUILDING.
                                      26.56% OF PROJECT.

</TABLE>

THE FOREGOING BASIC LEASE INFORMATION IS INCORPORATED INTO AND MADE A PART OF
THIS LEASE. EACH REFERENCE IN THIS LEASE TO ANY OF THE BASIC LEASE INFORMATION
SHALL MEAN THE RESPECTIVE INFORMATION ABOVE AND SHALL BE CONSTRUED TO
INCORPORATE ALL OF THE TERMS PROVIDED UNDER THE PARTICULAR LEASE PARAGRAPH
PERTAINING TO SUCH INFORMATION. IN THE EVENT OF ANY CONFLICT BETWEEN THE BASIC
LEASE INFORMATION AND THE LEASE, THE LATTER SHALL CONTROL.

<PAGE>   3

                               TABLE OF CONTENTS
<TABLE>
<CAPTION>
                                                                           Page
<S>  <C>                                 <C>                               <C>

     Basic Lease Information                                                 1

     Table of Contents                                                       2

1.   Premises                                                                3

2.   Possession and Lease Commencement                                       3

3.   Term                                                                    3

4.   Use                                                                     3

5.   Rules and Regulations                                                   4

6.   Rent                                                                    4

7.   Basic Operating Cost                                                    4

8.   Insurance and Indemnification                                           5

9.   Waiver of Subrogation                                                   6

10.  Landlord's Repairs and Services                                         6

11.  Tenant's Repairs                                                        6

12.  Alterations                                                             6

13.  Signs                                                                   7

14.  Inspection/Posting Notices                                              7

15.  Utilities                                                               7

16.  Subordination                                                           7

17.  Financial Statements                                                    7

18.  Estoppel Certificate                                                    7

19.  Security Deposit                                                        8

20.  Tenant's Remedies                                                       8

21.  Assignment and Subletting                                               8

22.  Quiet Enjoyment                                                         8

23.  Condemnation                                                            8

24.  Casualty Damage                                                         9

25.  Holding Over                                                            9

26.  Default                                                                10

27.  Liens                                                                  11

29.  Transfers by Landlord                                                  11

30.  Right of Landlord to Perform Tenant's Covenants                        11

31.  Waiver                                                                 11

32.  Notices                                                                12

33.  Attorneys' Fees                                                        12

34.  Successors and Assigns                                                 12

35.  Force Majeure                                                          12

36.  Miscellaneous                                                          12

37.  One Time Right to Cancel                                               12

Exhibit "A"                                                                                          Project Site Plan

Exhibit "B"                                                                                        Building & Premises

Exhibit "C"                                                                     Tenant Improvements and Specifications

Exhibit "D"                                                                                           Signage Criteria

Exhibit "E"                                                                Conditional Land Use Plan-abbreviated (CLUP)

</TABLE>

<PAGE>   4
                                     LEASE

                  This Lease is made as of JULY 2, 1997, between SPIEKER
            PROPERTIES, L.P., A CALIFORNIA LIMITED PARTNERSHIP (hereinafter
            called "LANDLORD") and INTUIT INC., A DELAWARE CORPORATION
            (hereinafter called "TENANT").

PREMISES       1. Landlord leases to Tenant and Tenant leases from Landlord,
                  upon the terms and conditions hereafter set forth, those
                  premises (the "Premises") as shown on Exhibit "B" and
                  described in the Basic Lease Information. The Premises may be
                  all or part of the building (the "Building") or of the project
                  (the "Project") which may consist of more than one building.
                  The Building and Project are shown on Exhibit "B".

POSSESSION
AND LEASE
COMMENCEMENT   2.

                  B.    In the event this Lease pertains to a Building to be
                  constructed or improvements to be constructed within a
                  Building, the provisions of this subparagraph 2.B. shall apply
                  in lieu of the provisions of subparagraph 2.A. above and the
                  Term Commencement Date shall be the earlier of the date on
                  which (1) Tenant takes possession of some or all of the
                  Premises, or (2) the improvements constructed or to be
                  constructed in the Premises shall have been substantially
                  completed in accordance with the plans and specifications
                  described on Exhibit "C" attached hereto and incorporated
                  herein by reference, AND DOCUMENTED BY A COPY OF THE
                  CERTIFICATE OF OCCUPANCY, TEMPORARY OR PERMANENT, FROM THE
                  CITY OF SAN DIEGO, whether or not substantial completion of
                  the Building itself shall have occurred. In the event of any
                  dispute as to substantial completion of work performed or
                  required to be performed by Landlord, the certificate of
                  Landlord's architect or general contractor shall be
                  conclusive. Substantial completion shall have occurred
                  notwithstanding a requirement for Landlord to complete punch
                  list items or similar corrective work. LANDLORD SHALL USE
                  COMMERCIALLY REASONABLE EFFORTS TO COMPLETE PUNCH LIST ITEMS
                  WITHIN SIXTY (60) DAYS OF TENANT SUBMITTING SUCH LIST IN
                  WRITING TO LANDLORD. Tenant shall, upon demand, within thirty
                  (30) days of receipt, execute and deliver to Landlord a letter
                  of acceptance of delivery of the Premises which WILL SPECIFY
                  THE ACTUAL TERM COMMENCEMENT DATE.

TERM           3. The Term of this Lease shall commence on the Term Commencement
                  Date and continue in full force and effect for the number of
                  months specified as the Length and Term in the Basic Lease
                  Information or until this Lease is terminated as otherwise
                  provided herein. If the Term Commencement Date is a date other
                  than the first day of the calendar month, the Term shall be
                  the number of months of the Length of Term in addition to the
                  remainder of the calendar month following the Term
                  Commencement Date.

USE            4. A.    Tenant shall use the Premises for the Permitted Use and
                  for no other use or purpose without prior written consent of
                  Landlord. No MATERIAL increase in the occupant density of the
                  Premises shall be made without the prior written consent of
                  Landlord. Tenant and its employees, customers, visitors, and
                  licensees shall have the non-exclusive right to use, in common
                  with other parties occupying the Buildings or Project, the
                  parking areas and driveways of the Project, subject to such
                  reasonable rules and regulations as Landlord may from time to
                  time prescribe.

                  B.    Tenant shall not permit any odors, smoke, dust, gas,
                  substances, noise or vibrations to emanate from the Premises,
                  nor take any action which would constitute a nuisance or would
                  disturb, obstruct or endanger any other tenants of the
                  Building or Project in which the Premises are situated or
                  unreasonably interfere with their use of their respective
                  premises. Tenant shall not receive, store or otherwise handle
                  any product, material or merchandise which is toxic, harmful,
                  explosive, highly inflammable or combustible, OTHER THAN
                  NORMAL AND REASONABLE AMOUNTS OF CLEANING AND PEST CONTROL
                  SUPPLIES REASONABLY NECESSARY FOR MAINTENANCE OF THE PREMISES
                  SO LONG AS SUCH MATERIALS ARE PROPERLY, SAFELY AND LAWFULLY
                  STORED AND USED BY TENANT. Storage outside the Premises of
                  materials, vehicles or any other items Landlord deems
                  objectionable is prohibited without Landlord's prior written
                  consent. Tenant shall not use or allow the Premises to be used
                  for any improper, immoral, unlawful or objectionable purpose,
                  nor shall Tenant cause or maintain or permit any nuisance in,
                  on or about the Premises. Tenant shall not commit or suffer
                  the commission of any waste in, on or about the Premises.
                  Tenant shall not allow any sale by auction upon the Premises,
                  or place any loads upon the floors, walls or ceilings which
                  endanger the structure, or place any harmful liquids in the
                  drainage system of the Building or Project. No waste,
                  materials or refuse shall be dumped upon or permitted to
                  remain outside the Premises except in trash containers placed
                  inside exterior enclosures designated for that purpose by
                  Landlord.

                                       4
<PAGE>   5

                  C.    Tenant shall not use the Premises or permit anything to
                  be done in or about the Premises which will in any way
                  conflict with any law, statute, ordinance or governmental rule
                  or regulation now in force or which may hereafter be enacted
                  or promulgated. Tenant shall at its sole cost and expense
                  obtain any and all licenses or permits necessary for Tenant's
                  use of the Premises. Tenant shall promptly comply with the
                  requirements of any board of fire underwriters or other
                  similar body now or hereafter constituted relating to or
                  affecting the condition, use or occupancy of the Premises. The
                  judgment of any court of competent jurisdiction or the
                  admission of Tenant in any actions against Tenant, whether
                  Landlord be a party thereto or not, that Tenant has so
                  violated any such law, statute, ordinance, rule, regulation or
                  requirement, shall be conclusive of such violation as between
                  Landlord and Tenant. Tenant shall not do or permit anything to
                  be done in, on or about the Premises or bring or keep anything
                  which will in any way increase the rate of any insurance upon
                  the Premises, Building or Project, or upon any contents
                  therein or cause a cancellation of said insurance or otherwise
                  affect said insurance in any manner. Tenant shall indemnify
                  Landlord and hold Landlord harmless against any loss, expense,
                  damage, attorneys' fees or liability arising out of the
                  failure of Tenant to comply with any applicable law or comply
                  with the requirements as set forth herein. THE PROJECT HAS
                  BEEN BUILT IN COMPLIANCE WITH ALL CURRENT BUILDING CODES,
                  INCLUDING ADA CONFORMANCE. TO THE BEST OF LANDLORD'S
                  KNOWLEDGE, THERE ARE CURRENTLY NO HAZARDOUS MATERIALS
                  VIOLATIONS ON OR ABOUT THE PREMISES

RULES AND
REGULATIONS    5. Tenant and Tenant's agents, employees, and invitees shall
               faithfully observe and comply with any rules and regulations
               Landlord may from time to time reasonably prescribe in writing
               for the purpose of maintaining the proper care, cleanliness,
               safety, traffic flow and general order of the Premises or
               Project. Landlord shall not be responsible to Tenant for the
               non-compliance by any other tenant or occupant of the Building
               or Project with any of the rules and regulations.

RENT           6. Tenant shall pay to Landlord, without demand throughout the
               term, Rent as specified in the Basic Lease Information, payable
               in monthly installments in advance on or before the first day of
               each calendar month, in lawful money of the United States,
               without deduction or offset whatsoever to Landlord at the address
               specified in the Basic Lease Information or to such other firm or
               to such other place as Landlord may from time to time designate
               in writing. Rent for the first full month of the Term shall be
               paid by Tenant upon Tenant's execution of this Lease. If the
               obligation for payment of Rent commences on other than the first
               day of a month, then Rent shall be prorated and the prorated
               installment shall be paid on the first day of the calendar month
               next succeeding the Term Commencement Date.

BASIC
OPERATING
COSTS          7. A.    BASIC OPERATING COST. In addition to the Base Rent
                  required to be paid hereunder, Tenant shall pay as additional
                  Rent, Tenant's Proportionate Share, as defined in the Basic
                  Lease Information, of Basic Operating Cost in the manner set
                  forth below. Basic Operating Cost shall mean all expenses and
                  costs of every kind and nature which Landlord shall pay or
                  become obligated to pay, or would be required to pay if the
                  Project were fully occupied, because of or in connection with
                  the management, maintenance, preservation and operation of the
                  Project and its supporting facilities servicing the Project
                  (determined in accordance with generally accepted accounting
                  principles, consistently applied) including, but not limited
                  to, the following:

                        (1)   All real estate taxes, possessory interest taxes,
                  business or license taxes or fees, service payment in lieu of
                  such taxes or fees, annual or periodic license or use fees,
                  excises, transit charges, housing fund assessments, open space
                  charge, assessments, levies, fees or charges, general and
                  special, ordinary and extraordinary, unforeseen as well as
                  foreseen, of any kind (including fees "in-lieu" of any such
                  tax or assessment) which are assessed, levied, charged,
                  confirmed, or imposed by any public authority upon the
                  Project, its operations or the rent (or any portion or
                  component thereof), except (a) inheritance or estate taxes
                  imposed upon or assessed against the Project, or any part
                  thereof or interest therein, and (b) taxes computed on the
                  basis of the net income of Landlord or the owner of any
                  interest therein.

                        (2)   All REASONABLE insurance premiums and costs,
                  including, but not limited to, any deductible amounts,
                  premiums and cost of fire, casualty and liability coverage,
                  rental abatement and special hazard insurance applicable to
                  the Project and Landlord's personal property used in
                  connection therewith; provided, however, that Landlord may,
                  but shall not be obligated to, carry special hazard insurance
                  covering losses caused by casualty not insured under standard
                  fire and extended coverage insurance.

                        (3)   Repairs, replacements (BUT NOT INCLUDING CAPITAL
                  ITEMS) and general maintenance for the Premises, Building and
                  Project (except for those repairs expressly the responsibility
                  of Landlord, those repairs paid for by proceeds of insurance
                  or by Tenant or other third parties and alterations
                  attributable solely to tenants of the Project other than
                  Tenant).

                        (4)   All REASONABLE maintenance, janitorial and service
                  agreements and costs of supplies and equipment used in
                  maintaining the Premises, Building and Project and the
                  equipment therein and the adjacent sidewalks, driveways,
                  parking and service areas, including, without limitation,
                  alarm service, window cleaning, elevator maintenance, Building
                  exterior maintenance and landscaping.

                        (5)   Utilities which benefit all or a portion of the
                  Premises.

                        (6)   A management and accounting cost recovery equal to
                  ten percent (10%) of Basic Operating Costs.

                                       5
<PAGE>   6

                  In the event that the Project is not fully occupied during any
                  fiscal year of the Term as determined by Landlord, an
                  adjustment shall be made in computing the Basic Operating Cost
                  for such year so that Basic Operating Cost shall be computed
                  as though the building had been one hundred percent (100%)
                  occupied; provided, however, that in no event shall Landlord
                  be entitled to collect in excess of one hundred percent (100%)
                  of the total Basic Operating Cost from all of the tenants in
                  the Project including Tenant.

                  All costs and expenses shall be determined in accordance with
                  generally accepted accounting principles which shall be
                  consistently applied. Basic Operating Cost shall not include
                  specific costs incurred for the account of, separately billed
                  to and paid by specific tenants. Notwithstanding anything
                  herein to the contrary, any instance wherein Landlord, at
                  Landlord's sole discretion, deems Tenant to be responsible for
                  any amounts greater than its Proportionate Share, Landlord
                  shall WITH WRITTEN NOTICE GIVEN TO TENANT, have the right to
                  allocate costs in any manner Landlord deems appropriate.

                  B.    PAYMENT OF ESTIMATED BASIC OPERATING COST. "Estimated
                  Basic Operating Cost" for any particular year shall mean
                  Landlord's estimate of the Basic Operating Cost for such
                  fiscal year made prior to commencement of such fiscal year as
                  hereinafter provided. Landlord shall have the right from time
                  to time to revise its fiscal year and interim accounting
                  periods so long as the periods as so revised are reconciled
                  with prior periods in accordance with generally accepted
                  accounting principles applied in a consistent manner. During
                  the last month of each fiscal year during the Term, or as soon
                  thereafter as practicable, Landlord shall give Tenant written
                  notice of the Estimated Basic Operating Cost for the ensuing
                  fiscal year. Tenant shall pay Tenant's Proportionate Share of
                  the Estimated Basic Operating Costs with installments of Base
                  Rent for the fiscal year to which the Estimated Basic
                  Operating Costs applies in monthly installments on the first
                  day of each calendar month during such year, in advance. If at
                  any time during the course of the fiscal year, Landlord
                  determines that Basic Operating Cost will apparently vary from
                  the then Estimated Basic Operating Cost by more than ten
                  percent (10%), Landlord may, by written notice to Tenant,
                  revise the Estimated Basic Operating Cost for the balance of
                  such fiscal year and Tenant shall pay Tenant's Proportionate
                  Share of the Estimated Basic Operating Cost as so revised for
                  the balance of the then current fiscal year on the first of
                  each calendar month thereafter.

                  C.    COMPUTATION OF BASIC OPERATING COST ADJUSTMENT. "Basic
                  Operating Cost Adjustment" shall mean the difference between
                  Estimated Basic Operating Cost and Basic Operating Cost for
                  any fiscal year determined as hereinafter provided. Within one
                  hundred twenty (120) days after the end of each fiscal year,
                  as determined by Landlord, or as soon thereafter as
                  practicable, Landlord shall deliver to Tenant a REASONABLY
                  DETAILED statement of Basic Operating Cost for the fiscal year
                  just ended accompanied by a computation of Basic Operating
                  Cost Adjustment. If such statement shows that Tenant's payment
                  based upon Estimated Basic Operating Cost is less than
                  Tenant's Proportionate Share (as defined in the Basic Lease
                  Information) of Basic Operating Cost, then Tenant shall pay to
                  Landlord the difference within twenty (20) days after receipt
                  of such statement. If such statement shows that Tenant's
                  payments of Estimated Basic Operating Cost exceed Tenant's
                  Proportionate Share of Basic Operating Costs, then (provided
                  that Tenant is not in default under this Lease), Landlord
                  shall pay to Tenant the difference within twenty (20) days of
                  such statement. If this Lease has been terminated or the Term
                  hereof has expired prior to the date of such statement, then
                  the Basic Operating Cost Adjustment shall be paid by the
                  appropriate party within twenty (20) days after the date of
                  delivery of the statement. Should this Lease commence or
                  terminate at any time other than the first day of the fiscal
                  year, Tenant's Proportionate Share of the Basic Operating Cost
                  adjustment shall be prorated by reference to the exact number
                  of calendar days during such fiscal year for which Tenant is
                  obligated to pay Base Rent.

                  D.    NET LEASE. This shall be a net Lease and Base Rent shall
                  be paid to Landlord absolutely net of all costs and expenses
                  except as herein provided. The provisions for payment of Basic
                  Operating Cost and the Basic Operating Cost Adjustment are
                  intended to pass on to Tenant and reimburse Landlord for all
                  costs and expenses of the nature described in Paragraph 7.A.
                  incurred in connection with ownership and operation of the
                  Building or Project and such additional facilities now and in
                  subsequent years as may be REASONABLY determined by Landlord
                  to be necessary to the Building or Project.

                  E.    TENANT AUDIT. Tenant shall have the right, at Tenant's
                  expense and upon not less than five (5) days prior written
                  notice to Landlord, to review at reasonable times, in
                  Landlord's office, Landlord's books and records applicable to
                  Tenant's Lease for purposes of verifying Landlord's
                  calculation of the Basic Operating Cost and Basic Operating
                  Cost Adjustment.

                  In the event that Tenant shall dispute the amount set forth in
                  any statement provided by Landlord under Paragraph 7.B. or
                  7.C. above, Tenant shall have the right, not later than twenty
                  (20) days following the receipt of such statement and upon
                  condition that Tenant shall first deposit with Landlord the
                  full amount in dispute, to cause Landlord's books and records
                  with respect to such fiscal year to be audited by certified
                  public accountants selected by Tenant and subject to
                  Landlord's reasonable right of approval. The Basic Operating
                  Cost Adjustment shall be appropriately adjusted on the basis
                  of such audit. If such audit discloses a liability for a
                  refund in excess of ten percent (10%) of Tenant's
                  Proportionate Share of the Basic Operating Cost Adjustment
                  previously reported, the cost of such audit shall be borne by
                  Landlord; otherwise, [the cost of such audit shall be paid by
                  Tenant. If Tenant shall not request an audit in accordance
                  with the provisions of this Paragraph 7.E. within twenty (20)
                  days of receipt of Landlord's statement provided pursuant to
                  Paragraph 7.B. or 7.C., such statement shall be final and
                  binding for all purposes hereof.

                                       6
<PAGE>   7
                   F.    EXCLUSIONS TO OPERATING EXPENSES. OPERATING COSTS
                   SPECIFICALLY DO NOT INCLUDE THE FOLLOWING: a) PRINCIPAL AND
                   INTEREST PAYMENTS OF DEBT; b) GROUND LEASE PAYMENTS; c)
                   DEPRECIATION; d) COSTS PROPERLY CHARGEABLE TO THE CAPITAL
                   ACCOUNT, EXCEPT FOR CAPITAL EXPENDITURES TO THE EXTENT TO
                   WHICH THEY REDUCE OPERATING EXPENSES; e) LANDLORD'S COSTS OF
                   ANY SERVICE SOLD TO ANY TENANT OR OCCUPANT OF THE BUILDING
                   FOR WHICH LANDLORD IS REIMBURSED AS AN ADDITIONAL CHARGE OVER
                   AND ABOVE THE RENT PAYABLE WITH ANY TENANT, OTHER THAN BY
                   VIRTUE OF THE PASS THROUGH OF BASIC OPERATING COSTS TO
                   TENANTS OF THE BUILDING; f) ATTORNEY FEES, COSTS AND
                   DISBURSEMENTS INCURRED IN CONNECTION WITH NEGOTIATIONS OR
                   DISPUTES WITH OTHER TENANTS IN THE BUILDING; g) COST OF ANY
                   ITEM FOR WHICH LANDLORD IS PAID OR REIMBURSED BY INSURANCE,
                   WARRANTIES OR CONDEMNATION PROCEEDS; h) EXECUTIVE PARTNER OR
                   BOARD MEMBER SALARIES; i) MARKETING AND ADVERTISING EXPENSES;
                   j) REAL ESTATE BROKERS COMMISSIONS; k) THE COST OF INITIAL
                   CONSTRUCTION OF THE BUILDING, AND ALL BASE BUILDING SYSTEMS,
                   INCLUDING THE INITIAL PAVING, STRIPING THE PARKING AREA,
                   LANDSCAPING, SIDEWALKS, CURBS, GUTTERS AND WALKWAYS.

                   In the event that Tenant shall dispute the amount set forth
                   in any statement provided by Landlord under Paragraph 7.13.
                   or 7.C. above, Tenant shall have the right, not later than
                   ONE HUNDRED AND EIGHTY (180) days following the receipt of
                   such statement and upon condition that Tenant shall first
                   deposit with Landlord the full amount in dispute, to cause
                   Landlord's books and records with respect to such fiscal year
                   to be audited by certified public accountants selected by
                   Tenant and subject to Landlord's reasonable right of
                   approval. The Basic Operating Cost Adjustment shall be
                   appropriately adjusted on the basis of such audit. If such
                   audit discloses a liability for a refund in excess of ten
                   percent (10%) of Tenant's Proportionate Share of the Basic
                   Operating Cost Adjustment previously reported, the cost of
                   such audit shall be borne by Landlord; otherwise, the cost of
                   such audit shall be paid by Tenant. If Tenant shall not
                   request AND COMPLETE an audit in accordance with the
                   provisions of this Paragraph 7.E. within ONE HUNDRED AND
                   EIGHTY (180) days of receipt of Landlord's statement provided
                   pursuant to Paragraph 7.B. or 7.C., such statement shall be
                   final and binding for all purposes hereof.

INSURANCE AND
INDEMNIFICATION 8. A.   CASUALTY INSURANCE. Landlord agrees to maintain
                   insurance insuring the Buildings of the Project of which the
                   Premises are a part, against fire, lightning, extended
                   coverage, vandalism and malicious mischief in an amount not
                   less than eighty percent (80%) of the replacement cost
                   thereof. Such insurance shall be for the sole benefit of
                   Landlord and under its sole control. Landlord shall not be
                   obligated to insure any furniture, equipment, machinery,
                   goods or supplies not covered by this Lease which Tenant may
                   keep or maintain in the Premises or any leasehold
                   improvements, additions or alternations which Tenant may make
                   upon the Premises.

                   B.    LIABILITY INSURANCE. Tenant shall purchase at its own
                   expense and keep in force during this Lease a policy or
                   policies of comprehensive liability insurance, including
                   personal injury and property damage, in the amount of not
                   less than Five Hundred Thousand Dollars ($500,000.00) for
                   property damage and Two Million Dollars ($2,000,000.00) per
                   occurrence for personal injuries or deaths of persons
                   occurring in or about the Premises and Project. Said policies
                   shall (1) name Landlord and, if applicable, its agent, and
                   any party holding an interest to which this Lease may be
                   subordinated as additional insureds, (2) be issued by an
                   insurance company acceptable to Landlord and licensed to do
                   business in the State of California, and (3) provide that
                   said insurance shall not be canceled unless thirty (30) days
                   prior written notice shall have been given to Landlord. Said
                   policy or policies or certificates thereof shall be delivered
                   to Landlord by Tenant upon commencement of the Lease and upon
                   each renewal of said insurance.

                   C.    INDEMNIFICATION.

                   LANDLORD SHALL INDEMNIFY, DEFEND BY COUNSEL REASONABLY
                   ACCEPTABLE TO TENANT, PROTECT AND HOLD TENANT HARMLESS FROM
                   AND AGAINST ANY AND ALL CLAIMS, LIABILITIES, LOSSES, COSTS,
                   DAMAGES, INJURIES OR EXPENSES, INCLUDING REASONABLE
                   ATTORNEYS' FEES AND COURT COSTS, ARISING OUT OF OR RELATED TO
                   THE ACTIVE NEGLIGENCE OR WILLFUL MISCONDUCT OF LANDLORD.
                   NOTWITHSTANDING THE FOREGOING OR ANYTHING TO THE CONTRARY
                   CONTAINER) IN THIS LEASE, LANDLORD SHALL IN NO EVENT BE
                   LIABLE AND TENANT HEREBY WAIVES ALL CLAIMS AGAINST LANDLORD
                   FOR ANY LOSS, DAMAGE, INJURY OR DEATH TO OR OF ANY PERSON OR
                   PROPERLY (INCLUDING WITHOUT LIMITATION PERSONAL PROPERTY)
                   CAUSED BY THEFT, FIRE, RAIN OR WATER LEAKAGE, OR FROM THE
                   BREAKAGE, LEAKAGE, OBSTRUCTION OR OTHER DEFECTS OF PIPES,
                   FIRE SPRINKLERS, WIRES, APPLIANCES, PLUMBING, HVAC OR
                   LIGHTING FIXTURES, ELECTRICAL OR OTHER SYSTEMS, OR BY ACTS OF

                                       7
<PAGE>   8

                  GOD (INCLUDING WITHOUT LIMITATION FLOOD OR EARTHQUAKE), ACTS
                  OF A PUBLIC ENEMY, RIOT, STRIKE, INSURRECTION, WAR, COURT
                  ORDER, REQUISITION OR ORDER OF GOVERNMENTAL BODY OR AUTHORITY
                  OR FOR ANY DAMAGE OR INCONVENIENCE WHICH MAY ARISE THROUGH
                  REPAIR, EXCEPT AS EXPRESSLY OTHERWISE PROVIDED IN PARAGRAPH
                  10. IN ADDITION, LANDLORD SHALL IN NO EVENT BE LIABLE FOR
                  INJURY TO TENANT'S BUSINESS OR ANY LOSS OF INCOME OR PROFIT
                  THEREFROM OR FOR CONSEQUENTIAL DAMAGES. TENANT SHALL
                  INDEMNIFY, DEFEND BY COUNSEL REASONABLY ACCEPTABLE TO
                  LANDLORD, PROTECT AND HOLD LANDLORD HARMLESS FROM AND AGAINST
                  ANY AND ALL CLAIMS, LIABILITIES, LOSSES, COSTS, LOSS OF RENTS,
                  LIENS, DAMAGES, INJURIES OR EXPENSES, INCLUDING REASONABLE
                  ATTORNEYS' FEES AND COURT COSTS, ARISING OUT OF OR RELATED TO:
                  (1) CLAIMS OF INJURY TO OR DEATH OF PERSONS OR DAMAGE TO
                  PROPERTY OCCURRING OR RESULTING DIRECTLY OR INDIRECTLY FROM
                  THE USE OR OCCUPANCY OF THE PREMISES BY TENANT OR TENANT'S
                  PARTIES, OR FROM ACTIVITIES OF TENANT OR TENANT'S PARTIES; (2)
                  CLAIMS ARISING FROM WORK OR LABOR PERFORMED, OR FOR MATERIALS
                  OR SUPPLIES FURNISHED TO OR AT THE REQUEST OF TENANT IN
                  CONNECTION WITH PERFORMANCE OF ANY WORK DONE FOR THE ACCOUNT
                  OF TENANT WITHIN THE PREMISES OR PROJECT; (3) CLAIMS ARISING
                  FROM ANY BREACH OR DEFAULT ON THE PART OF TENANT IN THE
                  PERFORMANCE OF ANY COVENANT CONTAINED IN THIS LEASE; AND (4)
                  CLAIMS ARISING FROM THE NEGLIGENCE OR INTENTIONAL ACTS OR
                  OMISSIONS OF TENANT OR TENANT'S PARTIES. THE FOREGOING
                  INDEMNITY BY TENANT SHALL NOT BE APPLICABLE TO CLAIMS TO THE
                  EXTENT ARISING FROM THE SOLE NEGLIGENCE OR WILLFUL MISCONDUCT
                  OF LANDLORD THE PROVISIONS OF THIS PARAGRAPH SHALL SURVIVE THE
                  EXPIRATION OR EARLIER TERMINATION OF THIS LEASE.

                  D.    BOTH LANDLORD AND TENANT MAY CARRY THE INSURANCE
                  REQUIRED TO BE CARRIED BY EACH PARTY HEREUNDER UNDER A BLANKET
                  POLICY OF INSURANCE THAT COVERS OTHER LOCATIONS WHERE THE
                  PARTY AND ITS AFFILIATES CONDUCT BUSINESS, PROVIDED THAT SUCH
                  BLANKET POLICY SHALL BE ENDORSED TO SPECIFICALLY COVER THE
                  PREMISES AND SHALL PROVIDE THE SAME AMOUNT AND TYPES OF
                  COVERAGE FOR THE PREMISES AND TENANT'S ACTIVITIES IN THE
                  BUILDING THAT WOULD BE PROVIDED BY A SEPARATE POLICY MEETING
                  THE REQUIREMENTS OF THIS PARAGRAPH 8B.

WAIVER OF
SUBROGATION    9. To the extent permitted by law and without affecting the
                  coverage provided by insurance required to be maintained
                  hereunder, Landlord and Tenant each waive any right to recover
                  against the other (a) damages for injury to or death of
                  persons, (b) damages to property, (c) damages to the Premises
                  or any part thereof, or (d) claims arising by reason of the
                  foregoing. This provision is intended to waive fully, and for
                  the benefit of each party, any rights and/or claims which
                  might give rise to a right of subrogation on any insurance
                  carrier. The coverage obtained by each party pursuant to this
                  Lease shall include, without limitation, a waiver of
                  subrogation by the carrier which conforms to the revisions of
                  this paragraph.

LANDLORD'S
REPAIRS AND
SERVICES      10. Landlord shall at Landlord's expense maintain the structural
                  soundness of the roof, foundations and exterior walls of the
                  Building in good repair, reasonable wear and tear excepted.
                  The term "walls" as used herein shall not include windows,
                  glass or plate glass, doors, special store fronts or office
                  entries. The term "roof" as used herein shall not include
                  skylights, smoke hatches or roof vents. Landlord shall perform
                  on behalf of Tenant and other tenants of the Project the
                  maintenance of the public and common areas of the Project
                  including, but not limited to, the landscaped areas, parking
                  areas, driveways, the truck staging areas, fire sprinkler
                  systems, sanitary and storm sewer lines, utility services,
                  electric and telephone equipment servicing the Building(s),
                  exterior lighting, and anything which affects the operation
                  and exterior appearance of the Project, which determination
                  shall be at Landlord's sole discretion. Tenant shall reimburse
                  Landlord for all such costs in accordance with Paragraph 7.
                  Any damage caused by or repairs necessitated by any act of
                  Tenant may be repaired by Landlord at Landlord's option and at
                  Tenant's expense. Tenant shall immediately give Landlord
                  written notice of any defect or need of repairs after which
                  Landlord shall have reasonable opportunity to repair same.
                  Landlord's liability with respect to any defects, repairs, or
                  maintenance for which Landlord is responsible under any of the
                  provisions of this Lease shall be limited to the cost of such
                  repairs or maintenance.

TENANT'S
REPAIRS       11. Tenant shall, at Tenant's expense, maintain all parts of the
                  Premises in a good clean and secure condition promptly making
                  all necessary repairs and replacements including, but not
                  limited to, all windows, glass, doors and any special office
                  entries, walls and wall finishes, floor covering, heating,
                  ventilating and air conditioning systems, truck doors, dock
                  bumpers, dock plates and levelers, roofing, plumbing work and
                  fixtures, down spouts, skylights, smoke hatches and roof
                  vents. Tenant shall at Tenant's expense also perform necessary
                  pest extermination and regular removal of trash and debris.
                  Tenant shall, at its own expense, enter into a regularly
                  scheduled preventive maintenance/service contract with a
                  maintenance contractor for servicing all hot water, heating
                  and air conditioning systems and equipment within or serving
                  the Premises. The maintenance contractor and the contract must
                  be approved by Landlord. The service contract must include all
                  services suggested by the equipment manufacturer within the
                  operation/maintenance manual, including maintaining the system
                  and ducts in a weatherproof condition, and must become
                  effective and a copy thereof delivered to Landlord within
                  thirty (30) days of the Term Commencement Date. Tenant shall
                  not damage any demising wall or disturb the integrity and
                  support provided by any demising wall and shall, at its sole
                  expense, immediately repair any damage to any demising wall
                  caused by Tenant or its employees, agents or invitees.

ALTERATIONS   12. Tenant shall not make, or allow to be made, any alterations or
                  physical additions in, about or to the Premises without
                  obtaining the prior written consent of Landlord, which consent
                  shall not be unreasonably withheld with respect to proposed
                  alterations and additions which (a) comply with all applicable
                  laws, ordinances, rules and regulations, (b) are in Landlord's
                  opinion compatible with the Project and its mechanical,
                  plumbing, electrical, and heating/ventilation/air conditioning

                                       8
<PAGE>   9

                  systems, and (c) in Landlord's opinion will not interfere with
                  the use and occupancy of any other portion of the Building or
                  Project by any other tenant or its invitees. NONSTRUCTURAL
                  ALTERATIONS TOTALLING UNDER $10,000 PER YEAR REQUIRE WRITTEN
                  NOTIFICATION TO LANDLORD, BUT NOT LANDLORD APPROVAL, SUBJECT
                  TO REMOVAL UPON TERMINATION AS OUTLINED IN THIS PARAGRAPH 12.
                  Specifically, but without limiting the generality of the
                  foregoing, Landlord shall have the right of consent for all
                  plans and specifications for the proposed alterations or
                  additions, construction means and methods, any contractor or
                  subcontractor to be employed on the work of alterations or
                  additions, and the time for performance of such work. Tenant
                  shall also supply to Landlord any documents and information
                  reasonably requested by Landlord in connection with its
                  consideration of a request for approval hereunder. Tenant must
                  have Landlord's written approval and all appropriate permits
                  and licenses prior to the commencement of said alterations and
                  additions. All alterations and additions permitted hereunder
                  shall be made and performed by Tenant without cost or expense
                  to Landlord including any REASONABLE costs or expenses which
                  Landlord may incur in electing to have an outside agency
                  review said plans and specifications. Landlord shall have the
                  right to require Tenant to remove any or all alterations,
                  additions, improvements and partitions made by Tenant and
                  restore the Premises to their original condition by the
                  termination of this Lease, by lapse of time or otherwise, all
                  at Tenant's expense. All such removals and restoration shall
                  be accomplished in a good and workmanlike manner so as not to
                  cause any damage to the Premises or Project whatsoever. If
                  Landlord so elects, such alterations, physical additions or
                  improvements shall become the property of Landlord and
                  surrendered to Landlord upon the termination of this Lease by
                  lapse of time or otherwise; provided, however, that this
                  clause shall not apply to trade fixtures or furniture owned by
                  Tenant. In addition to and wholly apart from its obligation to
                  pay Tenant's Proportionate Share of Basic Operating Costs,
                  Tenant shall be responsible for and shall pay prior to
                  delinquency any taxes or governmental service fees, possessory
                  interest taxes, fees or charges in lieu of any such taxes,
                  capital levies, or other charges imposed upon, levied with
                  respect to or assessed against its personal property, on the
                  value of its alterations, additions or improvements and on its
                  interest pursuant to this Lease. To the extent that any such
                  taxes are not separately assessed or billed to Tenant, Tenant
                  shall pay the amount thereof as invoiced to Tenant by
                  Landlord.

SIGNS         13. All signs, notices and graphics of every kind or character,
                  visible in or from public view or corridors, the common areas
                  or the exterior of the Premises, shall be subject to
                  Landlord's prior written approval, which Landlord shall have
                  the right to withhold in its absolute and sole discretion.
                  Tenant shall not place or maintain any banners whatsoever or
                  any window decor in or on any exterior window or window
                  fronting upon any common areas or service area or upon any
                  truck doors or man doors without Landlord's prior written
                  approval which Landlord shall have the right to grant or
                  withhold in its absolute and sole discretion. Any installation
                  of signs or graphics on or about the Premises and Project
                  shall be subject to any applicable governmental laws,
                  ordinances, regulations and to any other requirements imposed
                  by Landlord. Tenant shall remove all such signs and graphics
                  by the termination of this Lease. Such installations and
                  removals shall be made in such manner as to avoid injury to or
                  defacement of the Premises, Building or Project and any other
                  improvements contained therein, and Tenant shall repair any
                  injury or defacement including, without limitation,
                  discoloration caused by such installation or removal.

INSPECTION/
POSTING
NOTICES       14. After reasonable notice, except in emergencies where no such
                  notice shall be required, Landlord, its agents and
                  representatives, shall have the right to enter the Premises to
                  inspect the same, to clean, to perform such work as may be
                  permitted or required hereunder, to make repairs or
                  alterations to the Premises or Project or to other tenant
                  spaces therein, to deal with emergencies, to post such notices
                  as may be permitted or required by law to prevent the
                  perfection of liens against Landlord's interest in the Project
                  or to exhibit the Premises to prospective tenants, purchasers,
                  encumbrances or others, or for any other purpose as Landlord
                  may deem necessary or desirable; provided, however, that
                  Landlord shall not unreasonably interfere with Tenant's
                  business operations. Tenant shall not be entitled to any
                  abatement of Rent by reason of the exercise of any such right
                  of entry. Six months prior to the end of the Lease, Landlord
                  shall have the right to erect on the Premises and/or Project a
                  suitable sign indicating that the Premises are available for
                  lease. Tenant shall give written notice to Landlord at least
                  thirty (30) days prior to vacating the premises and shall meet
                  with Landlord for a joint inspection of the Premises at the
                  time of vacating. In the event of Tenant's failure to give
                  such notice or participate in such joint inspection,
                  Landlord's inspection at or after Tenant's vacating the
                  Premises shall conclusively be deemed correct for purposes of
                  determining Tenant's responsibility for repairs and
                  restoration.

UTILITIES     15. Tenant shall pay for all water, gas, heat, air conditioning,
                  light, power, telephone, sewer, sprinkler charges and other
                  utilities and services used on or from the Premises, together
                  with any taxes, penalties, surcharges or the like pertaining
                  thereto, and maintenance charges for utilities and shall
                  furnish all electric light bulbs, ballasts and tubes. If any
                  such services are not separately metered to Tenant, Tenant
                  shall pay a reasonable proportion, as determined by Landlord,
                  of all charges jointly serving other premises. Landlord shall
                  not be liable for any damages directly or indirectly resulting
                  from nor shall the Rent or any monies owed Landlord under this
                  Lease herein reserved be abated by reason of (a) the
                  installation, use or interruption of use of any equipment used
                  in connection with the furnishing of any of the foregoing
                  utilities and services, (b) failure to furnish or delay in
                  furnishing any such utilities or services when such failure or
                  delay is caused by acts of God or the elements, labor
                  disturbances of any character, any other accidents or other
                  conditions beyond the reasonable control of Landlord, or (c)
                  the limitation, curtailment, rationing or restriction on use
                  of water, electricity, gas or any other form of energy or any
                  other service or utility whatsoever serving the Premises or
                  Project. Landlord shall be entitled to cooperate voluntarily
                  and in a reasonable manner in the efforts of national, state
                  or local governmental agencies or utility suppliers in
                  reducing energy or other resource consumption. The obligation
                  to

                                       9
<PAGE>   10
                  make services available hereunder shall be subject to the
                  limitations of any such voluntary, reasonable program. SHOULD
                  AN INTERRUPTION OF SERVICES OR UTILITIES THAT HAS BEEN CAUSED
                  BY LANDLORD'S NEGLIGENCE OR WILLFUL MISCONDUCT RENDER THE
                  PREMISES UNTENANTABLE FOR A PERIOD LONGER THAN FORTY EIGHT
                  (48) HOURS, LANDLORD WILL ABATE BASE RENT FOR EACH 24 HOUR
                  PERIOD THEREAFTER UNTIL PREMISES CAN, IN LANDLORD'S OPINION,
                  BE OCCUPIED AGAIN, REDUCED BY TENANT'S PROCEEDS FROM ANY
                  BUSINESS INTERRUPTION OR OTHER INSURANCE.

SUBORDINATION 16.

                  TENANT SHALL, UPON LANDLORD'S REQUEST, SUBORDINATE THIS LEASE
                  TO ANY FIRST LIEN OR GROUND LEASE HEREAFTER PLACED BY LANDLORD
                  UPON TIRE PREMISES, PROVIDED THE LENDER OR GROUND LESSOR
                  EXECUTED A NON-DISTURBANCE AGREEMENT ASSURING TENANT THAT,
                  NOTWITHSTANDING ANY DEFAULT BY LANDLORD TO THE LENDER OR
                  GROUND LESSOR, OR ANY FORECLOSURE OR DEED IN LIEU THEREOF OR
                  ANY TERMINATION OF THE GROUND LEASE, TENANT'S RIGHTS UNDER
                  THIS LEASE SHALL CONTINUE IN FULL FORCE AND EFFECT AND ITS
                  POSSESSION OF THE DEMISED PREMISES SHALL REMAIN UNDISTURBED
                  EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF THIS LEASE, IN
                  FORM AND SUBSTANCE REASONABLY SATISFACTORY TO TENANT AND ITS
                  COUNSEL.

FINANCIAL
STATEMENTS    17. At the request of Landlord, Tenant shall provide to Landlord
                  its current financial statements or other information
                  discussing financial worth which Landlord shall use solely for
                  purposes of this Lease and in connection with the ownership,
                  management and disposition of the property subject hereto.

ESTOPPEL
CERTIFICATES  18. Tenant agrees from time to time within ten (10) days after
                  request of Landlord, to deliver to Landlord, or Landlord's
                  designee, an estoppel certificate stating that this Lease is
                  in full force and effect, the date to which Rent has been
                  paid, the unexpired portion of this Lease and such other
                  matters pertaining to this Lease as may be reasonably
                  requested by Landlord. Failure by Tenant to execute and
                  deliver such certificate shall constitute an acceptance of the
                  Premises and acknowledgment by Tenant that the statements
                  included are true and correct without exception. Landlord and
                  Tenant intend that any statement delivered pursuant to this
                  paragraph may be relied upon by any mortgagee, beneficiary,
                  purchaser or prospective purchaser of the Project or any
                  interest therein. The parties agree that Tenant's obligation
                  to furnish such estoppel certificates in a timely fashion is a
                  material inducement for Landlord's execution of the Lease.

SECURITY
DEPOSIT       19. Tenant agrees to deposit with Landlord upon execution of this
                  Lease, a Security Deposit as stated in the Basic Lease
                  Information which sum shall be held by Landlord, without
                  obligation for interest, as security for the performance of
                  Tenant's covenants and obligations under this Lease, it being
                  expressly understood and agreed that such deposit is not an
                  advance rental deposit or a measure of damages incurred by
                  Landlord in case of Tenant's default. Upon the occurrence of
                  any event of default by Tenant, Landlord may, from time to
                  time, without prejudice to any other remedy provided herein or
                  provided by law, use such fund to the extent necessary to make
                  good any arrears of Rent or other payments due to Landlord
                  hereunder, and any other damage, injury, expense or liability
                  caused by such event of default, and Tenant shall pay to
                  Landlord, on demand, the amount so applied in order to restore
                  the Security Deposit to its original amount. Although the
                  Security Deposit shall be deemed the property of Landlord, any
                  remaining balance of such deposit shall be returned by
                  Landlord to Tenant at such time after termination of this
                  Lease that all of the Tenant's obligations under this Lease
                  have been fulfilled.

TENANT'S
REMEDIES      20. Tenant shall look solely to Landlord's interest in the Project
                  for recovery of any judgment from Landlord. Landlord, or if
                  Landlord is a partnership, its partners whether general or
                  limited, or if it is a corporation, its directors, officers or
                  shareholders, shall never be personally liable for any such
                  judgment. Any lien obtained to enforce any such judgment and
                  any levy of execution thereon shall be subject and subordinate
                  to any lien, mortgage or deed of trust on the Project.

                                       10
<PAGE>   11

ASSIGNMENT
AND
SUBLETTING    21. A.    Tenant shall not assign or sublet the Premises or any
                  part thereof without Landlord's prior written approval, except
                  as provided herein. If Tenant desires to assign this Lease or
                  sublet any or all of the Premises, AND PROVIDED TENANT IS NOT
                  AND HAS NOT BEEN IN MATERIAL DEFAULT DURING THE TERM OF THIS
                  LEASE, FOR WHICH TENANT HAS RECEIVED WRITTEN NOTICE OF THE
                  DEFAULT AND TENANT HAS FAILED TO CURE AS PROVIDED IN THIS
                  LEASE, Tenant shall give Landlord written notice SIXTY (60)
                  days prior to the anticipated effective date of the assignment
                  or sublease. Landlord shall then have a period of FIFTEEN
                  (15) days following receipt of such notice to notify Tenant in
                  writing that Landlord elects to permit Tenant to assign this
                  Lease or sublet such space, subject, however, to Landlord's
                  prior written approval of the proposed assignee or subtenant
                  and of any related documents or agreements associated with the
                  assignment or sublease, such consent not to be unreasonably
                  withheld so long as the use of the Premises by such proposed
                  assignee or subtenant would be a Permitted Use and would not
                  in Landlord's opinion MATERIALLY increase occupant density of
                  the Project, the proposed assignee or subtenant is of sound
                  financial condition. Written approval by Landlord of the
                  proposed assignee or subtenant shall be required. Failure by
                  Landlord to approve a proposed assignee or subtenant shall not
                  cause a termination of this Lease. LANDLORD SHALL APPROVE,
                  DISAPPROVE AS DEFINED ABOVE WITHIN FORTY-FIVE (45) DAYS OF
                  RECEIPT OF TENANT'S FIRST NOTICE OF DESIRE TO ASSIGN OR
                  SUBLEASE.

                  B.    Any Rent or other consideration realized by Tenant under
                  any such sublease or assignment in excess of the Rent payable
                  hereunder, after amortization of (1) the reasonable cost of
                  any improvements which Tenant has made for the purpose of
                  assigning or subletting all or part of the Premises and (2)
                  reasonable subletting and assignment costs, shall be divided
                  and paid, ten percent (10%) to Tenant, ninety percent (90%) to
                  Landlord.

                  C.    In any subletting or assignment undertaken by Tenant,
                  Tenant shall diligently seek to obtain the maximum rental
                  amount available in the marketplace for such subletting or
                  assignment.

                  D.    If Tenant is a corporation, a transfer of corporate
                  shares by sale, assignment, bequest, inheritance, operation of
                  law or other disposition (including such a transfer to or by a
                  receiver or trustee in federal or state bankruptcy, insolvency
                  or other proceedings), so as to result in a change in the
                  present control of such corporation or any of its parent
                  corporations by the person or persons owning a majority of
                  said corporate shares, shall constitute an assignment for
                  purposes of this paragraph.

                  E.    If Tenant is a partnership, joint venture or other
                  unincorporated business form, a transfer of the interest of
                  persons, firms or entities responsible for managerial control
                  of Tenant by sale, assignment, bequest, inheritance, or
                  operation of law or other disposition, so as to result in a
                  change in the present control of said entity and/or a change
                  in the identity of the persons responsible for the general
                  credit obligations of said entity shall constitute an
                  assignment for all purposes of this paragraph.

                  F.    No assignment or subletting by Tenant shall relieve
                  Tenant of any obligations under this Lease. Any assignment or
                  subletting which conflicts with the provisions hereof shall be
                  void.

                  G.    ANY PROVISION IN THIS LEASE TO THE CONTRARY
                  NOTWITHSTANDING, LANDLORD'S CONSENT SHALL NOT BE REQUIRED FOR
                  A TRANSFER: (a) TO ANY PERSON OR ENTITY WHO CONTROLS, IS
                  CONTROLLED BY OR IS UNDER COMMON CONTROL WITH TENANT; (b) TO
                  ANY CORPORATION RESULTING FROM THE MERGER OR CONSOLIDATION
                  WITH TENANT (PROVIDED THAT TENANT'S ABILITY TO PERFORM ALL OF
                  ITS OBLIGATIONS UNDER THIS LEASE ARE IN NO WAY REDUCED, AND
                  THE OCCUPANCY DENSITY OF THE PREMISES IS NOT MATERIALLY
                  INCREASED, AS A RESULT OF SUCH MERGER OR CONSOLIDATION); OR
                  (c) TO ANY PERSON OR LEGAL ENTITY HAVING A CONSOLIDATED NET
                  WORTH WITH TENANT OF AT LEAST $30,000,000, WHICH ACQUIRES ALL
                  THE ASSETS OF TENANT AS A GOING CONCERN OF THE BUSINESS BEING
                  CONDUCTED ON THE PREMISES (EACH OF THE FOREGOING IS
                  HEREINAFTER REFERRED TO AS A "TENANT AFFILIATE"); PROVIDED
                  THAT BEFORE SUCH ASSIGNMENT SHALL BE EFFECTIVE, (a) SAID
                  TENANT AFFILIATE SHALL ASSUME, IN FULL, THE OBLIGATIONS OF
                  TENANT UNDER THIS LEASE, (b) LANDLORD SHALL BE GIVEN WRITTEN
                  NOTICE OF SUCH ASSIGNMENT AND ASSUMPTION AND (c) THE USE OF
                  THE PREMISES BY THE TENANT AFFILIATE SHALL BE AS SET FORTH IN
                  PARAGRAPH 4. FOR THE PURPOSES OF THIS PARAGRAPH, THE TERM
                  "CONTROL" MEANS POSSESSION, DIRECTLY OR INDIRECTLY, OF THE
                  POWER TO DIRECT OR CAUSE THE DIRECTION OF THE MANAGEMENT,
                  AFFAIRS AND POLICIES OF ANYONE, WHETHER THROUGH THE OWNERSHIP
                  OF VOTING SECURITIES, BY CONTRACT OR OTHERWISE.

QUIET
ENJOYMENT     22. Landlord represents that it has full right and authority to
                  enter into this Lease and that Tenant, upon paying the Rent
                  and performing its other covenants and agreements herein set
                  forth, shall peaceably and quietly have, hold and enjoy the
                  Premises for the Term hereof without hindrance or molestation
                  from Landlord, subject to the terms and provisions of this
                  Lease.

CONDEMNATION  23. A.    If the whole, or any substantial portion of the Project
                  of which the Premises are a part, should be taken or condemned
                  for any public use under governmental law, ordinance, or
                  regulation, or by right of eminent domain, or by private
                  purchase in lieu thereof, and the taking would prevent or
                  materially interfere with the Permitted Use of the Premises,
                  this Lease shall terminate and the Rent shall be abated during
                  the unexpired portion of this lease, effective when the
                  physical taking of said Premises shall have occurred.

                                       11
<PAGE>   12

                  B.    If a portion of the Project of which the Premises are a
                  part should be taken or condemned for any public use under any
                  governmental law, ordinance, or regulation, or by right of
                  eminent domain, or by private purchase in lieu thereof, and
                  this Lease is not terminated as provided in subparagraph 23.A.
                  above, this Lease shall not terminate, but the Rent payable
                  hereunder during the unexpired portion of the Lease shall be
                  reduced to such extent as may be fair and reasonable under all
                  of the circumstances.

                  C.    Landlord shall be entitled to any and all payment,
                  income, rent, award, or any interest therein whatsoever which
                  may be paid or made in connection with such taking or
                  conveyance and Tenant shall have no claim against Landlord or
                  otherwise for the value of any unexpired portion of this
                  Lease. Notwithstanding the foregoing paragraph, any
                  compensation specifically awarded Tenant for loss of business,
                  Tenant's personal property, moving cost or loss of goodwill,
                  shall be and remain the property of Tenant.

CASUALTY
DAMAGE        24. A.    If the Premises should be damaged or destroyed by fire,
                  tornado or other casualty, Tenant shall give immediate written
                  notice thereof to Landlord. Within thirty (30) days of such
                  notice, Landlord shall notify Tenant whether in Landlord's
                  opinion such repairs can be made either (1) within ninety
                  (90) days, (2) in more than ninety (90) days, but in less than
                  one hundred eighty (180) days, or (3) in more than one hundred
                  eighty (180) days from the date of such notice; Landlord's
                  determination shall be binding on Tenant.

                  B.    If the Premises should be damaged by fire, tornado or
                  other casualty but only to such extent that rebuilding or
                  repairs can in Landlord's estimation be completed within
                  ninety (90) days after the date upon which Landlord is
                  notified by Tenant of such damage, this Lease shall not
                  terminate, and Landlord shall at its sole cost and expense
                  thereupon proceed with reasonable diligence to rebuild and
                  repair the Premises to substantially the condition in which
                  they existed prior to such damage, except that Landlord shall
                  not be required to rebuild, repair or replace any part of the
                  partitions, fixtures, additions and other improvements which
                  may have been placed in, on or about the Premises by Tenant.
                  If the Premises are untenantable in whole or in part following
                  such damage, the Rent payable hereunder during the period in
                  which they are untenantable shall be reduced to such extent as
                  may be fair and reasonable under all of the circumstances.

                  C.    If the Premises should be damaged by fire, tornado or
                  other casualty, but only to such extent that rebuilding or
                  repairs can in Landlord's estimation be completed in more than
                  ninety (90) days but in less than one hundred eighty (180)
                  days, then Landlord shall have the option of either (1)
                  terminating the Lease effective upon the date of the
                  occurrence of such damage, in which event the Rent shall be
                  abated during the unexpired portion of the Lease, or (2)
                  electing to rebuild or repair the Premises to substantially
                  the condition in which they existed prior to such damage
                  except that Landlord shall not be required to rebuild, repair
                  or replace any part of the partitions, fixtures, additions and
                  other improvements which may have been placed in, on or about
                  the Premises by Tenant. If the Premises are untenantable in
                  whole or in part following such damage, the Rent payable
                  hereunder during the period in which they are untenantable
                  shall be reduced to such extent as may be fair and reasonable
                  under all of the circumstances. In the event that Landlord
                  should fail to complete such repairs and rebuilding within one
                  hundred eighty (180) days after the date upon which Landlord
                  is notified by Tenant of such damage, such period of time to
                  be extended for delays caused by the fault or neglect of
                  Tenant or because of acts of God, acts of public agencies,
                  labor disputes, strikes, fires, freight embargoes, rainy or
                  stormy weather, inability to obtain materials, supplies or
                  fuels, or delay of the contractors or subcontractors due to
                  such causes or other contingencies beyond the reasonable
                  control of Landlord, Tenant may at its option terminate this
                  Lease by delivering thirty (30) days prior written notice of
                  termination to Landlord as Tenant's exclusive remedy,
                  whereupon all rights and obligations hereunder shall cease and
                  terminate.

                  D.    If the Premises should be so damaged by fire, tornado,
                  or other casualty that rebuilding or repairs cannot in
                  Landlord's estimation be completed within one hundred eighty
                  (180) days after the date upon which Landlord is notified by
                  Tenant of such damage, this Lease shall terminate and the Rent
                  shall be abated during the unexpired portion of this Lease,
                  effective upon the date of the occurrence of such damage.

                  E.    Notwithstanding anything herein to the contrary, in the
                  event that holder of any indebtedness secured by a mortgage or
                  deed of trust covering the Premises requires that the
                  insurance proceeds be applied to such indebtedness, then
                  Landlord shall have the right to terminate this Lease by
                  delivering written notice of termination to Tenant within
                  fifteen (15) days after such requirement is made by any such
                  holder, whereupon all rights and obligations hereunder shall
                  cease and terminate.

                  F.    The provision of Section 1942, Subdivision 2, and
                  Section 1933, Subdivision 4, of the Civil Code of California
                  is superseded by the foregoing.

HOLDING OVER  25. IF IN LANDLORD'S OPINION ACTIVE NEGOTIATION OF A RENEWAL IS
                  NOT UNDERWAY AND PROGRESSING, AND IF Tenant retains possession
                  of the Premises or any portion thereof without Landlord's
                  consent following the expiration of the Lease or sooner
                  termination for any reason, then Tenant shall pay to Landlord
                  for each day of such retention ONE AND A HALF TIMES the amount
                  of the daily rental for the first month prior to the date of
                  expiration or termination. IN THE EVENT OF A RENEWAL OF THE
                  LEASE, SAID HOLD OVER MONIES WILL BE APPLIED TO THE RENEWAL
                  PERIOD AT THE RENEWAL RATE. Tenant shall also indemnify and
                  hold Landlord harmless from any loss or liability resulting
                  from delay by Tenant in

                                       12
<PAGE>   13

                  surrendering the Premises, including, without limitation, any
                  claims made by any succeeding tenant founded on such delay.
                  Acceptance of Rent by Landlord following expiration or
                  termination shall not constitute a renewal of this Lease, and
                  nothing contained in this paragraph shall waive Landlord's
                  right of reentry or any other right. Tenant shall be only a
                  tenant at sufferance, whether or not Landlord accepts any Rent
                  from Tenant while Tenant is holding over without Landlord's
                  written consent. Additionally, in the event that upon
                  termination of the Lease, Tenant has not fulfilled its
                  obligation with respect to repairs and cleanup of the Premises
                  or any other Tenant obligations as set forth in this Lease,
                  then Landlord shall have the right to perform any such
                  obligations as it deems necessary at Tenant's sole cost and
                  expense, and the terms of this paragraph shall apply.

DEFAULT       26. A.    EVENTS OF DEFAULT. The occurrence of any of the
                  following shall constitute an event of default on the part of
                  Tenant:

                        (2)   NONPAYMENT OF RENT. Failure to pay any installment
                  of Rent or any other amount due and payable hereunder upon the
                  date when said payment is due, such failure continuing without
                  cure by payment of the delinquent Rent and late charge or
                  other obligations for a period of five (5) days after written
                  notice and demand; provided, however, that except as expressly
                  otherwise provided herein, Landlord shall not be required to
                  provide such notice more than twice during the Term, the third
                  such non-payment constituting default for all purposes hereof
                  without requirements of notice.

                        (3)   OTHER OBLIGATIONS. Failure to perform any
                  obligations, agreement or covenant under this Lease other than
                  those matters specified in subparagraphs (1) and (2) of this
                  subparagraph 26A, such failure continuing for fifteen (15)
                  days after written notice of such failure, or such longer
                  period as Landlord determines to be necessary to remedy such
                  default, provided that Tenant shall continuously and
                  diligently pursue such remedy at all times until such default
                  is cured.

                        (4)   GENERAL ASSIGNMENT. A general assignment by Tenant
                  for the benefit of creditors.

                        (5)   BANKRUPTCY. The filing of any voluntary petition
                  in bankruptcy by Tenant, or the filing of an involuntary
                  petition by Tenant's creditors, which involuntary petition
                  remains undischarged for a period of thirty (30) days. In the
                  event that under applicable law, the trustee in bankruptcy or
                  Tenant has the right to affirm this Lease and continue to
                  perform the obligation of Tenant hereunder, such trustee or
                  Tenant shall, in such time period as may be permitted by the
                  bankruptcy court having jurisdiction, cure all defaults of
                  Tenant hereunder outstanding as of the date of the affirmance
                  of this Lease and provide to Landlord such adequate assurances
                  as may be necessary to ensure Landlord of the continued
                  performance of Tenant's obligations under this Lease.

                        (6)   RECEIVERSHIP. The employment of a receiver to take
                  possession of substantially all of Tenant's assets of the
                  Premises, if such attachment or other seizure remains
                  undismissed or undischarged for a period of ten (10) days
                  after the levy thereof.

                        (7)   ATTACHMENT. The attachment, execution or other
                  judicial seizure of all or substantially all of Tenant's
                  assets of the Premises, if such attachment or other seizure
                  remains undismissed or undischarged for a period of ten (10)
                  days after the levy thereof.

                  B.    REMEDIES UPON DEFAULT.

                        (1)   RENT. All failures to pay any monetary obligation
                  to be paid by Tenant under this Lease shall be construed as
                  obligations for payment of Rent.

                        (2)   TERMINATION. In the event of the occurrence of any
                  event of default, Landlord shall have the right, with or
                  without notice or demand, to immediately terminate this Lease,
                  and at any time thereafter recover possession of the Premises
                  or any part thereof and expel and remove therefrom Tenant and
                  any other person occupying the same, by any lawful means, and
                  again repossess and enjoy the Premises without prejudice to
                  any of the remedies that Landlord may have under this Lease,
                  or at law or equity by reason of Tenant's default or of such
                  termination.

                        (3)   CONTINUATION AFTER DEFAULT. Even though Tenant has
                  breached this Lease and/or abandoned the Premises, this Lease
                  shall continue in effect for so long as Landlord does not
                  terminate Tenant's right to possession under Paragraph
                  26.B.(2) hereof, and Landlord may enforce all its rights and
                  remedies under this Lease, including, but without limitation,
                  the right to recover Rent as it becomes due, and Landlord,
                  without terminating this Lease, may exercise all of the rights
                  and remedies of a Landlord under Section 1951.4 of the Civil
                  Code of the State of California or any successor code section.
                  Acts of maintenance preservation or efforts to lease the
                  Premises or the appointment of a receiver upon application of
                  Landlord to protect Landlord's interest under this Lease shall
                  not constitute an election to terminate Tenant's right to
                  possession.

                                       13
<PAGE>   14

                  C.    DAMAGES UPON TERMINATION. Should Landlord terminate this
                  Lease pursuant to the provisions of Paragraph 26.B.(2) hereof,
                  Landlord shall have all the rights and remedies of a Landlord
                  provided by Section 1951.2 of the Civil Code of the State of
                  California, or successor code sections. Upon such termination,
                  in addition to any other rights and remedies to which Landlord
                  may be entitled under applicable law, Landlord shall be
                  entitled to recover from Tenant: (1) the worth at the time of
                  award of the unpaid Rent and other amounts which had been
                  earned at the time of termination, (2) the worth at the time
                  of award of the amount by which the unpaid Rent which would
                  have been earned after termination until the time of award
                  exceeds the amount of such Rent loss that the Tenant proves
                  could have been reasonably avoided, (3) the worth at the time
                  of award of the amount by which the unpaid Rent for the
                  balance of the term after the time of award exceeds the amount
                  of such Rent loss that the Tenant proves could be reasonably
                  avoided, and (4) any other amount necessary to compensate
                  Landlord for all the detriment proximately caused by Tenant's
                  failure to perform its obligations under the lease or which,
                  in the ordinary course of things, would be likely to result
                  therefrom. The "worth at the time of award" of the amounts
                  referred to in (1) and (2) above shall be computed with
                  interest at the maximum rate allowed by law. The "worth at the
                  time of award" of the amount referred to in (3) above shall be
                  computed by discounting such amount at the Federal Discount
                  Rate of the Federal Reserve Bank of San Francisco at the time
                  of the award plus one percent (1%).

                  D.    LATE CHARGE. In addition to its other remedies, Landlord
                  shall have the right without notice or demand to add to the
                  amount of any payment required to be made by Tenant hereunder,
                  and which is not paid on or before the date the same is due,
                  an amount equal to ten percent (10%) of the delinquency for
                  each month or portion thereof that the delinquency remains
                  outstanding to compensate Landlord for the loss of the use of
                  the amount not paid and the administrative costs caused by the
                  delinquency, the parties agreeing that Landlord's damage by
                  virtue of such delinquencies would be difficult to compute and
                  the amount stated herein represents a reasonable estimate
                  thereof.

                  E.    REMEDIES CUMULATIVE. All rights, privileges and
                  elections or remedies of the parties are cumulative and not
                  alternative to the extent permitted by law and except as
                  otherwise provided herein.

LIENS         27. Tenant shall keep the premises free from liens arising out of
                  or related to work performed, materials or supplies furnished
                  or obligations incurred by Tenant or in connection with work
                  made, suffered or done by Tenant in or on the Premises or
                  Project. In the event that Tenant shall not, within ten (10)
                  days following the imposition of any such lien, cause the same
                  to be released of record by payment or posting of a proper
                  bond, Landlord shall have, in addition to all other remedies
                  provided herein and by law, the right, but not the obligation,
                  to cause the same to be released by such means as it shall
                  deem proper, including payment of the claim giving rise to
                  such lien. All sums paid by Landlord on behalf of Tenant and
                  all expenses incurred by Landlord in connection therefore
                  shall be payable to Landlord by Tenant on demand with interest
                  at the maximum rate allowable by law. Landlord shall have the
                  right at all times to post and keep posted on the Premises any
                  notices permitted or required by law, or which Landlord shall
                  deem proper, for the protection of Landlord, the Premises, the
                  Project and any other party having an interest herein, from
                  mechanics' and materialmen's liens, and Tenant shall give
                  Landlord not less than ten (10) business days prior written
                  notice of the commencement of any work in the Premises or
                  Project which could lawfully give rise to a claim for
                  mechanics' or materialmen's lien.

TRANSFERS BY
LANDLORD      29. In the event of a sale or conveyance by Landlord of the
                  Project, the same shall operate to release Landlord from any
                  future liability upon any of the covenants or conditions,
                  express or implied, herein contained in favor of Tenant, and
                  in such event Tenant agrees to look solely to the
                  responsibility of the successor in interests of Landlord in
                  and to this Lease. This Lease shall not be affected by any
                  such sale and Tenant agrees to attorn to the purchaser or
                  assignee.

                                       14
<PAGE>   15

RIGHT OF
LANDLORD TO
PERFORM
TENANT'S
COVENANTS     30. All covenants and agreements to be performed by Tenant under
                  any of the terms of this Lease shall be performed by Tenant,
                  at Tenant's sole cost and expense, and without any abatement
                  of Rent. If Tenant shall fail to pay any sum of money other
                  than Rent, required to be paid by it hereunder, or shall fail
                  to perform any other act on its part to be performed
                  hereunder, and such failure shall continue for ten (10) days
                  after notice thereof by Landlord, Landlord may, but shall not
                  be obligated to do so, and without waiving or releasing Tenant
                  from any obligations of the Tenant, make any such payment or
                  perform any such act on the Tenant's part to be made or
                  performed. All sums so paid by Landlord and all necessary
                  incidental costs together with interest thereon at the maximum
                  rate permitted by law from the date of such payment by the
                  Landlord shall be payable to Landlord on demand, and Tenant
                  covenants to pay such sums, and Landlord shall have, in
                  addition to any other right or remedy of Landlord, the same
                  right and remedies in the event of the nonpayment thereof by
                  Tenant as in the case of default by Tenant in the payment of
                  Rent.

WAIVER        31. If either Landlord or Tenant waives the performance of any
                  term, covenant or condition contained in this Lease, such
                  waiver shall not be deemed to be a waiver of any subsequent
                  breach of the same or any other term, covenant or condition
                  contained herein. The acceptance of rent by Landlord shall not
                  constitute a waiver of any preceding breach by Tenant of any
                  term, covenant or condition of this Lease, regardless of
                  Landlord's knowledge of such preceding breach at the time
                  Landlord accepted such Rent. Failure by Landlord to enforce
                  any of the terms, covenants or conditions of this Lease for
                  any length of time shall not be deemed to waive or to decrease
                  the right of Landlord to insist thereafter upon strict
                  performance by Tenant. Waiver of Landlord of any term,
                  covenant or condition contained in this Lease may only be made
                  by a written document signed by Landlord.

NOTICES       32. Each provision of this Lease or of any applicable governmental
                  laws, ordinances, regulations and other requirements with
                  reference to the sending, mailing or delivery of any notice or
                  the making of any payment by Landlord or Tenant to the other
                  shall be deemed to be complied with when and if the following
                  steps are taken:

                  A.    All Rent and other payments required to be made by
                  Tenant to Landlord hereunder shall be payable to Landlord at
                  the address set forth in the Basic Lease Information, or at
                  such other address as Landlord may specify from time to time
                  by written notice delivered in accordance herewith. Tenant's
                  obligation to pay Rent and any other amounts to Landlord under
                  the terms of this Lease shall not be deemed satisfied until
                  such Rent and other amounts have been actually received by
                  Landlord.

                  B.    All notices, demands, consents and approvals which may
                  or are required to be given by either party to the other
                  hereunder shall be in writing and shall be deemed to have been
                  fully given when deposited in the United States mail,
                  certified or registered, postage prepaid, or express mail or
                  confirmed facsimile and addressed to the party to be notified
                  at the address for such party specified in the Basic Lease
                  Information or to such other place as the party to be notified
                  may from time to time designate by at least fifteen (15) days
                  notice to the notifying party. Tenant appoints as its agent to
                  receive the service of all default notices and notice of
                  commencement of unlawful detainer proceedings the persons
                  named in the Basic Lease Information in addition to the person
                  in charge of or apparently in charge of or occupying the
                  Premises at the time, and, if there is no such person, then
                  such service may be made by mailing to the persons named in
                  the Basic Lease Information and attaching the same on the main
                  entrance of the Premises.

ATTORNEYS'
FEES          33. In the event either party places the enforcement of this
                  Lease, or any part thereof, or the collection of any Rent due,
                  or to become due hereunder, or recovery of the possession of
                  the Premises in the hands of an attorney or files suit upon
                  the same, the prevailing party shall recover its reasonable
                  attorneys' fees and court costs.

SUCCESSORS
AND ASSIGNS   34. This Lease shall be binding upon and inure to the benefit of
                  Landlord, its successors and assigns, and shall be binding
                  upon and inure to the benefit of Tenant, its successors, and
                  to the extent assignment may be approved by Landlord
                  hereunder, Tenant's assigns.

FORCE MAJEURE 35. Whenever a period of time is herein prescribed for action to
                  be taken by Landlord, Landlord shall not be liable or
                  responsible for, and there shall be excluded from the
                  computation for any such period of time, any delays due to
                  strike, riots, acts of God, shortages of labor or materials,
                  war, governmental laws, regulations or restrictions or any
                  other causes of any kind whatsoever which are beyond the
                  control of Landlord.

MISCELLANEOUS 36. A.    The term "Tenant" or any pronoun used in place thereof
                  shall indicate and include the masculine or feminine, the
                  singular or plural number, individuals, firms or corporations,
                  and their and each of their respective successors, executors,
                  administrators and permitted assigns, according to the context
                  hereof.

                  B.    Time is of the essence regarding this Lease and all of
                  its provisions.

                  C.    This Lease shall in all respects be governed by the laws
                  of the State of California.

                  D.    This Lease, together with its exhibits, contains all the
                  agreements of the parties hereto and supersedes any previous
                  negotiations.

                                       15
<PAGE>   16

                  E.    There have been no representations made by the Landlord
                  or understandings made between the parties other than those
                  set forth in this Lease and its exhibits.

                  F.    This Lease may not be modified except by a written
                  instrument by the parties hereto.

                  G.    If, for any reason whatsoever, any of the provisions
                  hereof shall be unenforceable or ineffective, all of the other
                  provisions shall be and remain in full force and effect.

ONE TIME RIGHT
TO CANCEL     37. Tenant shall be granted a one time right to cancel this Lease,
                  provided that Tenant is not, and has not been, in material
                  default throughout this Lease, for which Tenant has received
                  written notice of the default and Tenant has failed to cure as
                  provided in this Lease. Termination will occur on the first
                  day of the thirty-seventh (37th) month only if activated by
                  Tenant giving Landlord at least one hundred eighty (180) days
                  prior written notice of its intent together with a payment of
                  all unamortized costs incurred by Landlord for the tenant
                  improvements outlined in Exhibit C and Exhibit C-l attached
                  hereto, including permits and space planning costs and using
                  straight line amortization, plus three months rent equivalent
                  to the 37th, 38th and 39th months base rent plus operating
                  expenses ("Cancellation Fee"). Nonpayment of the 37th month
                  base rent equivalent from the Cancellation Fee at time of said
                  notice, lack of written notification per the above outlined
                  schedule, or any material event of default whatsoever during
                  the term of this Lease for which Tenant has received written
                  notice of the default and Tenant has failed to cure as
                  provided in this Lease renders this paragraph null and void.
                  The balance of the Cancellation Fee (the unamortized
                  construction costs plus the 38th and 39th month base rent
                  equivalent plus the operating costs for the 37th through the
                  39th month) shall be due on the effective date of termination.

              38. LEASE EFFECTIVE DATE. Submission of this instrument for
                  examination or signature by Tenant does not constitute a
                  reservation or option for lease, and it is not effective as a
                  lease or otherwise until execution by Landlord and Tenant.

IN WITNESS WHEREOF, the parties hereto have executed this Lease according to the
dates listed below.

"Landlord"                                   "Tenant"

SPIEKER PROPERTIES, L. P.,                   INTUIT INC.,
a California limited partnership             a Delaware corporation

BY: SPIEKER PROPERTIES, INC.                 BY: /s/ DAVID A. KINSER
a Maryland Corporation                          ---------------------------
Its: General Partner                            David A. Kinser
                                             Its: Senior Vice President,
                                                  Operations

By: /s/ RICHARD L. ROMNEY
    --------------------------
     Richard L. Romney
     Senior Vice President

Date: 7/14/97

                                       16
<PAGE>   17

                                   EXHIBIT "A"
                              PROJECT AND BUILDING
                                  Not to scale
                      West Building-5950 Nancy Ridge Drive
                      East Building-6060 Nancy Ridge Drive

                                  [FLOOR PLAN]

                   SITE PLAN BUILDING 2 & 3 (LOTS 102 & 103)

                                       17
<PAGE>   18

                                   EXHIBIT "B"
                                    PREMISES

 Floor plan of the subject Premises located at 6060 Nancy Ridge Drive, Suite B,
                             San Diego, California

                                   Not to scale

                                  [FLOOR PLAN]

                                       18
<PAGE>   19

                                   EXHIBIT "C"
                     TENANT IMPROVEMENTS AND SPECIFICATIONS

Landlord will contribute Three hundred and three thousand dollars ($303,000)
("Landlord's Contribution") toward mutually acceptable tenant improvements
detailed as follows. Tenant is required to pay prior to occupancy, any costs for
Tenant's work which exceeds the total of Landlord's Contribution. Landlord will
cause to be constructed approximately 9,200 rentable square feet of improved
office area per the attached Exhibit C-l to include a reception, conference
room, 3 private offices, 2 large open office areas, duplication room, mail room,
computer/printing room storage, lunch room, AL room, storage and two (2) large
rest rooms. AS A MATERIAL INDUCEMENT TO LANDLORD'S CONTRIBUTION TOWARDS TENANT
IMPROVEMENT COSTS, TENANT HEREBY AGREES TO REMOVE, AT TENANT'S SOLE COST UPON
TERMINATION OR OTHER SUCH END TO THIS LEASE, OFFICE AREA IMPROVEMENTS OF
LANDLORD'S CHOICE IN EXCESS OF 10% OF THE PREMISES RENTABLE AREA. IN THIS CASE
OFFICE AREA OVER 6,000 SQUARE FEET IS SUBJECT TO REMOVAL AT TENANT'S COST AND
AT LANDLORD'S OPTION.

                  The OFFICE AREA WILL HAVE THE FOLLOWING FINISH:

                  -     heating, ventilation and air-conditioning throughout

                  -     acoustical tile ceiling with batt insulation above

                  -     fire sprinklers

                  -     recessed fluorescent lighting (standard office
                  footcandle)

                  -     painted walls with building standard paint (insulation
                  in all perimeter and restroom walls)

                  -     carpet, VCT or vinyl in all office areas ($12.50/sq.yd.
                  building standard allowance; color selection by Tenant)

                  -     convenience electrical-120 volt power per code
                  requirements, up to two (2) dedicated circuits and telephone
                  outlets, mud ring only for phones

                  -     solid core wood doors and metal door frames

                  -     2 rest rooms each to contain one sink and one water
                  closet

                  THE WAREHOUSE WILL BE IMPROVED AS FOLLOWS:

                  -     full height demising wall separating adjacent tenant

                  -     Metal Halide HID lighting (20-25 footcandles)

                  -     electrical service with transformer to step down from
                  480 (not to exceed 200 amps of 120/280V power)

                  -     sealed concrete floor

                  -     single coat while paint on walls

                  -     separate gas and electric meters

                  -     ESFR sprinklers provided in warehouse-stacking of
                  materials and all racking systems are the sole responsibility
                  of Tenant and must be in conformance to ESFR type sprinklers
                  and City of San Diego guidelines

                  -     Eight (8) hydrolic Rite Hite dock levelers without
                  dock locks, at locations determined by Tenant, cost not to
                  exceed $5,400 per unit.

Any additions or modifications to the improvements must be approved in writing
by Landlord. Any increase in cost, including the cost of design, as a result of
such addition or modification shall be acknowledged by Tenant in writing and
paid to Landlord within 30 days of occupancy. Any delay in construction caused
by these changes which extends the completion of the improvements shall not
alter the Commencement Date of the Lease.

Landlord appoints Landlord's Representative to act for Landlord and Tenant
appoints Tenant's Representative to act for Tenant in all matters covered by
this Work Letter. All inquires, requests, instructions, authorizations, and
other communications with respect the matters covered by this Work Letter will
be made to Landlord's Representative or Tenant's Representative, as the case may
be. Tenant will not make any inquires of or requests to, and will not give any
instructions or authorizations to, any other employee or agent of Landlord,
including Landlord's architect, engineers, or contractors or any of their agents
or employees, with regard to matters covered by this Work Letter. Either party
may change its Representative under this Work Letter at any time with three (3)
days' prior written notice to the other party.

Tenant's Representative:               Steve Crossley

Landlord's Representative:             Tina Ravizza

Space Planner:                         Sean Tracy-Pacific Cornerstone Architects

Contractor:                            R. G. Petty Contracting

TENANT'S TAKING POSSESSION OF THE PREMISES AND ACCEPTANCE OF THE PREMISES SHALL
NOT CONSTITUTE A WAIVER OF ANY WARRANTY OR OF ANY DEFECT IN REGARD TO
WORKMANSHIP OR MATERIAL OF THE BUILDING AND OTHER IMPROVEMENTS THAT ARE PART OF
THE PREMISES ("CONSTRUCTION DEFECT"). IF LANDLORD DOES NOT ASSIGN ANY AND ALL
WARRANTIES FOR THE EQUIPMENT ACRD CONSTRUCTION, TENANT SHALL HAVE SIX (6) MONTHS
OR THE ACTUAL APPLICABLE WARRANTY PERIOD AFTER IT ERAS TAKEN POSSESSION OF THE
PREMISES WITHIN WHICH TO NOTIFY LANDLORD OF ANY CONSTRUCTION DEFECT EXCEPT FOR
LATENT DEFECTS. LANDLORD SHALL HAVE A COMMERCIALLY REASONABLE TIME FRAME TO
CORRECT OR REMEDY ANY CONSTRUCTION DEFECT.

                                       19
<PAGE>   20

                                  EXHIBIT "C-1"
                     TENANT IMPROVEMENTS AND SPECIFICATIONS
                                OFFICE AREA ONLY

                       FLOOR PLAN FOR: INTUIT 60585 S.F.

                                       20
<PAGE>   21

                                   EXHIBIT "D"
                                SIGNAGE CRITERIA

      Uniform signage subject to Landlord's approval is allowed above Tenant's
suite entrance. Monument signage is being considered for the project, and if
approved, Tenant will be offered a portion of the monument sign allocated for
Tenant signage.

                                       21
<PAGE>   22
                                  EXHIBIT "E"
                SUMMARY OF COMPREHENSIVE LAND USE PLAN ("CLUP")

     Tenant hereby acknowledges it has been made aware of a comprehensive land
use plan created and administered by San Diego Association of Governments
("SANDAG") adopted in October 1990 and amended in 1992, which is subject to
further amendment, attached in summary form below. This is provided for
informational purposes only. Further detail regarding the CLUP is available from
SANDAG.

                                      CLUP

                          Comprehensive Land Use Plan
                                      1990

                       [PHOTOGRAPH OF JET FIGHTER PLANE]

                           Naval Air Station Miramar
                             San Diego, California

                  AIRPORT NOISE/LAND USE COMPATIBILITY MATRIX
                           IMPLEMENTATION DIRECTIVES

All the uses specified are "compatible" up to the noise level indicated.
Specified uses are also allowed as "conditionally compatible" in the noise
levels shown if two specific conditions are met and certified by the local
general purpose agency:

-    Proposed buildings will be noise attenuated to the level shown on the
     matrix based on an acoustical study submitted along with building plans.

-    In the case of discretionary actions, such as approval of subdivisions,
     zoning changes, or conditional use permits, an aviation easement for noise
     shall be required to be recorded with the County Recorder as a condition of
     approval of the project. A copy shall also be filed with the affected
     airport operator. For all property transactions, appropriate legal notice
     shall be given to all purchasers, lessees and renters of property in
     "conditionally compatible" areas which clearly describes the potential for
     impacts from airplane noise associated with airport operations. Notice will
     also be provided as required on the State Real Estate Disclosure form.

Identified uses proposed in noisier areas than the level indicated on the matrix
are considered "incompatible."

The directives below relate to the specific "conditionally compatible" land use
categories identified by number on the matrix.

3.   New schools, preschools and libraries located within the CNEL 60-65
     contours must be subjected to an acoustical study to assure that interior
     levels will not exceed CNEL 45.

4.   New residential and related uses located within the CNEL 60-65 contours
     must be subjected to an acoustical study to assure that interior levels
     will not exceed CNEL 45. Appropriate legal notice shall be provided to
     purchasers, lessees, and renters of properties in this conditionally
     compatible zone in the manner previously described.

     "Residential hotels" are defined as those that have 75% or more of
     accommodations occupied by permanent guests (staying more than 30 days) or
     those hotels which have at least 50 percent of their accommodations
     containing kitchens.

5.   Transient Lodging is defined as hotels and motels, membership lodgings (Y's
     etc.), suite or apartment hotels, hotels, or other temporary residence
     units, not defined as residential hotels, above. Within the CNEL 60-70
     contours, buildings must be subjected to an acoustical study to assure that
     interior levels do not exceed CNEL 45. Appropriate legal notice shall be
     provided to purchasers, lessees, and renters of properties in this
     conditionally compatible zone in the manner previously described.

6.   Office buildings include many types of office and service uses: business
     and business services; finance, insurance, real estate; personal services;
     professional (medical, legal and educational); and government, research and
     development and others. Within the CNEL 65-70 contours, buildings must be
     subjected to an acoustical study to assure that interior levels do not
     exceed CNEL 50. Appropriate legal notice shall be provided to purchasers,
     lessees, and renters of properties in this conditionally compatible zone in
     the manner previously described.

8.   For new commercial retail uses located within the CNEL 65-75 contours,
     buildings must be subjected to an acoustical study to assure that interior
     levels do not exceed CNEL 50. Appropriate legal notice shall be provided to
     purchasers, lessees, and renters of properties in this conditionally
     compatible zone in the manner previously described.

                                       22
<PAGE>   23

WHAT IS THE CLUP?

The Naval Air Station (NAS) Miramar Comprehensive Land Use Plan (CLUP)
represents Navy and community recommendations for achieving compatible
development near the air station. The CLUP was prepared by the San Diego
Association of Governments (SANDAG) under authority of Article 3.5 of the
California Public Utilities Code. The CLUP also incorporates recommendations of
the Navy's Air Installation Compatible Use Zones (AICUZ) program, part of a
nation-wide planning effort by the Department of Defense to look at accident
potential and noise impacts around each military air installation in the United
States. The goals of the CLUP are to:

     *    Protect NAS Miramar from incompatible land uses;

     *    Provide criteria for the orderly growth of the area surrounding the
          air station;

     *    Safeguard the general welfare of those inhabitants within the vicinity
          of the air station by protecting them from the adverse effects of
          aircraft noise and accident potential; and

     *    Ensure that no obstructions or other hazards affect navigable
          airspace.

WHY IS THERE A PROBLEM?

Many military and civilian airfields were originally constructed in the open
countryside. Over the years pressures to house a growing population meant people
tended to move onto land near airfields. This nearby land normally has
established access routes, and in many cases offers the advantages of living or
working close to a major employment base. Meanwhile the level of air traffic has
increased. These counteracting trends can cause problems for the air facility as
well as local residents. Specifically, problems arise when use of the land is
not controlled for compatibility with air operations.

Although noise impact areas no longer grow at rates experienced in the 1970's
(and have actually decreased at NAS Miramar), the land near all airfields will
continue to have high noise levels and potential for aircraft accidents. Land
near airfields is suitable for certain types of development, such as agriculture
or industrial uses, but may not be suitable for other types of development. Land
near NAS Miramar consists of a mix of residential, commercial and industrial
uses. For the most part, these developments are considered compatible with the
current land use plan.

COMMUNITY PARTICIPATION

Land use compatibility is a shared concern of the Navy, the public, and the
local government agencies who have planning and zoning authority. The decision
makers for the local government have the key responsibility for taking actions
that preserve land use compatibility. The cooperative action of all parties
helps to resolve land use compatibility problems.

NAVY ROLE IN THE ECONOMY

More than 11,000 military and 2,500 civilian personnel work at NAS Miramar.
Nearly 2,500 bachelor and 615 married military personnel (with 1,000 dependents)
live at the air facility. An additional 1800 military, with 5,500 dependents
live in military housing off station with the rest living in the surrounding
communities. All totalled -- military, civilians and dependents -- NAS Miramar
has an extended family of nearly 30,000.

NAS Miramar is part of the naval complex in San Diego County. Over 175,000
Department of Defense personnel work in San Diego with a total economic impact
to the community of $9.5 billion annually. NAS Miramar accounts for over $700
million of this total. Overall, one in five dollars in the San Diego economy is
a Navy dollar.

INSTALLATION MISSION

NAS Miramar is the home of the jet fighter and early warning aircraft of the
Pacific Fleet. The mission of the station is to maintain and operate facilities
and provide services and materials to support operations of aviation activities
and units of the operating forces of the Navy.

WHAT IS NAS MIRAMAR DOING?

The people stationed at NAS Miramar are aware of their responsibility to
minimize noise levels and hazards for the residents of nearby communities. Since
1974, noise complaints at NAS Miramar have decreased from a high of over 2,000
to 210 in 1991. This decrease resulted from the installation of hush houses to
suppress ground engine runups, noise abatement procedures, and changes in
aircraft mix.

MORE INFORMATION

Copies of the NAS Miramar CLUP may be obtained from SANDAG. Information on
height restrictions and obstruction determination can be obtained from the
Federal Aviation Administration or NAS Miramar. Information on land use
compatibility may be obtained from the Community Planning Liaison Office at NAS
Miramar.

NAS Miramar                                Community Planning Liaison Office
NOISE COMPLAINTS                           Code: 00M, NAS Miramar
(619) 537-4277                             San Diego, CA 92145-5000
                                           (619) 537-1235

San Diego Association of Governments       Federal Aviation Administration
401 B Street, Suite 800                    13006 Aviation Blvd.
San Diego, CA 92101                        Hawthorne, CA 90261
(619) 595-5300                             (310) 297-1667

                                       23

<PAGE>   24
                          [CLUP COMPOSITE MAP GRAPHIC]

CLUP Area

The NAS Miramar CLUP Composite Map shows a combination of noise and Accident
Potential Zones (APZs). The noise descriptor used in this study is CNEL, which
stands for Community Noise Equivalent Level. CNEL is the weighted average sound
level for a 24-hour day. It is calculated by weighing evening and night
operations five and ten times more than day operations, respectively, to adjust
for the increased irritation caused by noise during evening and night hours.
The depicted noise footprint ranges from 60 dB CNEL to 75 dB CNEL. The Accident
Potential Zones represent areas that are overflown by aircraft and, therefore,
more susceptible to accidents. The three APZs are APZ II, APZ I, and the Clear
Zone; each progressively closer to the runway and potentially of more concern.
The Land Use Compatibility Guidelines for noise and APZs promote compatible
development near the air station. The guidelines recommend restricting noise
sensitive development in the high noise zones, and restricting population
density within the APZs. Zones of highest noise and accident potential have the
smallest range of compatible land use.

                                 [VICINITY MAP]

Heights and Obstructions

In addition to noise and APZ considerations, height restrictions are necessary
to insure that no object will interfere with the safe operation of aircraft or
deny operational capability of the air station. Any development proposal that
includes an object over 200 feet above ground level (AGL) or which
penetrates the 100:1 slope extending 20,000 feet from the nearest point of the
nearest runway must be submitted to the Federal Aviation Administration (FAA)
for an obstruction evaluation. SANDAG and NAS Miramar must also be notified of
these proposals by the applicant. The following should also be examined for
compatibility:

        -  Uses that release into the air any substance that would impair
visibility or otherwise interfere with the operation of aircraft (e.g., dust,
smoke, or steam).

        -  Uses which emit or reflect light that would interfere with aircrew
vision.

        -  Uses that produce emissions which would interfere with aircraft
communications systems, navigation systems or other electrical systems.

        -  Uses which attract birds, such as (but not limited to) sanitary
landfills, maintenance of feed stations, growing certain types of vegetation,
etc.

                                       24
<PAGE>   25
                  Airport Noise/Land Use Compatibility Matrix

<TABLE>
<CAPTION>
                                                                   Annual Community Noise Equivalent Level
                                                                                        (CNEL) in decibels

LAND USE                                                                  55     60     65     70     75
----------------------------------------------------------------------------------------------------------
<S>                                                                     <C>      <C>    <C>    <C>    <C>
1.  OUTDOOR AMPHITHEATERS

----------------------------------------------------------------------------------------------------------
2.  NATURE PRESERVES, WILDLIFE PRESERVES, LIVESTOCK FARMING,
    NEIGHBORHOOD PARKS AND PLAYGROUNDS

----------------------------------------------------------------------------------------------------------
3.  SCHOOLS, PRESCHOOLS, LIBRARIES

                                                                                  45

----------------------------------------------------------------------------------------------------------
4.  RESIDENTIAL SINGLE FAMILY, MULTIPLE FAMILY MOBILE HOMES,
    RESIDENTIAL HOTELS, RETIREMENT HOMES, INTERMEDIATE CARE                       45
    FACILITIES, HOSPITALS, NURSING HOMES

----------------------------------------------------------------------------------------------------------
5.  HOTELS AND MOTELS, OTHER TRANSIENT LODGING, AUDITORIUMS, CONCERT
    HALLS, INDOOR ARENAS, CHURCHES                                                45    45

----------------------------------------------------------------------------------------------------------
6.  OFFICE BUILDINGS-BUSINESS, EDUCATIONS, PROFESSIONAL AND PERSONAL
    SERVICES; R & D OFFICES AND LABORATORIES                                            50

----------------------------------------------------------------------------------------------------------
7.  RIDING STABLES, WATER RECREATION FACILITIES, REGIONAL PARKS AND ATHLETIC
    FIELDS, CEMETERIES, OUTDOOR SPECTATOR SPORTS, GOLF COURSES

----------------------------------------------------------------------------------------------------------
8.  COMMERCIAL-RETAIL; SHOPPING CENTERS, RESTAURANTS, MOVIE THEATERS                    50      50

----------------------------------------------------------------------------------------------------------
9.  COMMERCIAL-WHOLESALE, INDUSTRIAL; MANUFACTURING

----------------------------------------------------------------------------------------------------------
10. AGRICULTURE (EXCEPT RESIDENCES AND LIVESTOCK EXTRACTIVE INDUSTRY,
    UTILITIES & PUBLIC R-O-W

----------------------------------------------------------------------------------------------------------
</TABLE>

This matrix should be used with reference to the Implementation Directives
shown on the reverse

[ ]   COMPATIBLE
      The outdoor community noise equivalent level in sufficiently attenuated by
      conventional construction that the indoor noise level is acceptable, and
      both indoor and outdoor activities associated with the land use may be
      carried out with essentially no interference from aircraft noise.

[45]  CONDITIONALLY COMPATIBLE

      The outdoor community noise equivalent level will be attenuated to the
      indoor level shown, and the outdoor noise level is acceptable for
      associated outdoor activities.

[ ]   INCOMPATIBLE

      The community noise equivalent level is severe. Although extensive
      mitigation techniques could make the indoor environment acceptable for
      performance of activities the outdoor environment would be intolerable
      for outdoor activities associated with the land use.

                              Land Use Compatibility In Accident Potential Zones

<TABLE>
<CAPTION>

LAND USE                                                            APZ 1          APZ 2
----------------------------------------------------------------------------------------------------------
<S>                                                                 <C>            <C>

RESIDENTIAL(1) APARTMENTS, AND TRANSIENT LODGING

----------------------------------------------------------------------------------------------------------

ASSEMBLY AREAS:
Schools, Churches, Libraries, Auditoriums, Sports Arenas, etc.,
Preschools, Nurseries, and Restaurants

----------------------------------------------------------------------------------------------------------

Hospitals, Sanitariums, and Nursing Homes

----------------------------------------------------------------------------------------------------------

OFFICES, RETAIL SHOPS*                                               50

----------------------------------------------------------------------------------------------------------

WHOLESALE STORES, MANUFACTURING**                                    50

----------------------------------------------------------------------------------------------------------

OUTDOOR USES:
Playgrounds, Neighborhood Parks,                                     50
Golf Courses, Riding Stables,
Public Right-of-Way

----------------------------------------------------------------------------------------------------------
</TABLE>

(1)  Residential land uses include single family, duplex, mobile homes,
     multi-family, and retirement homes.

*   See 1992 CLUP revision for siting of flammable, hazardous, and toxic
    materials within the APZs.

**  It is suggested that lot coverage in APZ1 should be less than 25%; and less
    than 40% in APZ2.

  For further information on determining compatibility in APZs, please see
  the NAS Miramar CLUP

[             ]   COMPATIBLE
[             ]

[50 or fewer  ]   CONDITIONAL COMPATIBLE
[Persons/Acre ]

[             ]   INCOMPATIBLE
[             ]

                                       25
<PAGE>   26

                                    EXHIBIT A
                                INDUSTRIAL LEASE
                              RULES AND REGULATIONS

1.    Driveways, sidewalks, halls, passages, exits, entrances, elevators,
      escalators and stairways shall not be obstructed by tenants or used by
      tenants for any purpose other than for ingress to and egress from their
      respective premises. The driveways, sidewalks, halls, passages, exits,
      entrances, elevators and stairways are not for the use of the general
      public and Landlord shall in all cases retain the right to control and
      prevent access thereto by all persons whose presence, in the judgment of
      Landlord, shall be prejudicial to the safety, character, reputation and
      interests of the Building, the Project and its tenants, provided that
      nothing herein contained shall be construed to prevent such access to
      persons with whom any tenant normally deals in the ordinary course of such
      tenant's business unless such persons are engaged in illegal activities.
      No tenant, and no employees or invitees of any tenant, shall go upon the
      roof of any Building, except as authorized by Landlord.

2.    No sign, placard, banner, picture, name, advertisement or notice, visible
      from the exterior of the Premises or the Building or the common areas of
      the Building shall be inscribed, painted, affixed, installed or otherwise
      displayed by Tenant either on its Premises or any part of the Building or
      Project without the prior written consent of Landlord in Landlord's sole
      and absolute discretion. Landlord shall have the right to remove any such
      sign, placard, banner, picture, name, advertisement, or notice without
      notice to and at the expense of Tenant, which were installed or displayed
      in violation of this rule. If Landlord shall have given such consent to
      Tenant at any time, whether before or after the execution of Tenant's
      Lease, such consent shall in no way operate as a waiver or release of any
      of the provisions hereof or of the Lease, and shall be deemed to relate
      only to the particular sign, placard, banner, picture, name, advertisement
      or notice so consented to by Landlord and shall not be construed as
      dispensing with the necessity of obtaining the specific written consent of
      Landlord with respect to any other such sign, placard, banner, picture,
      name, advertisement or notice.

      All approved signs or lettering on doors and walls shall be printed,
      painted, affixed or inscribed at the expense of Tenant by a person or
      vendor approved by Landlord and shall be removed by Tenant at the time of
      vacancy at Tenant's expense.

3.    The directory of the Building or Project will be provided exclusively for
      the display of the name and location of tenants only and Landlord reserves
      the right to charge for the use thereof and to exclude any other names
      therefrom.

4.    No curtains, draperies, blinds, shutters, shades, screens or other
      coverings, awnings, hangings or decorations shall be attached to, hung or
      placed in, or used in connection with, any window or door on the Premises
      without the prior written consent of Landlord. In any event with the prior
      written consent of Landlord, all such items shall be installed inboard of
      Landlord's standard window covering and shall in no way be visible from
      the exterior of the Building. All electrical ceiling fixtures hung in
      offices or spaces along the perimeter of the Building must be fluorescent
      or of a quality, type, design, and bulb color approved by Landlord. No
      articles shall be placed or kept on the window sills so as to be visible
      from the exterior of the Building. No articles shall be placed against
      glass partitions or doors which Landlord considers unsightly from outside
      Tenant's Premises.

5.    Each tenant shall be responsible for all persons for whom it allows to
      enter the Building or the Project and shall be liable to Landlord for all
      acts of such persons.

      Landlord and its agents shall not be liable for damages for any error
      concerning the admission to, or exclusion from, the Building or the
      Project of any person.

      During the continuance of any invasion, mob, riot, public excitement or
      other circumstance rendering such action advisable in Landlord's opinion,
      Landlord reserves the right (but shall not be obligated) to prevent access
      to the Building and the Project during the continuance of that event by
      any means it considers appropriate for the safety of tenants and
      protection of the Building, property in the Building and the Project.

6.    Tenant shall not alter any lock or access device or install a new or
      additional lock or access device or bolt on any door of its Premises,
      without the prior written consent of Landlord. If Landlord shall give its
      consent, Tenant shall in each case furnish Landlord with a key for any
      such lock. Tenant, upon the termination of its tenancy, shall deliver to
      Landlord the keys for all doors which have been furnished to Tenant, and
      in the event of loss of any keys so furnished, shall pay Landlord
      therefor.

7.    The restrooms, toilets, urinals, wash bowls and other apparatus shall not
      be used for any purpose other than that for which they were constructed
      and no foreign substance of any kind whatsoever shall be thrown into them.
      The expense of any breakage, stoppage, or damage resulting from violation
      of this rule shall be borne by the tenant who, or whose employees or
      invitees, shall have caused the breakage, stoppage, or damage.

8.    Tenant shall not use or keep in or on the Premises, the Building or the
      Project any kerosene, gasoline, or inflammable or combustible fluid or
      material except in strict accordance with the terms of the Lease.

9.    Tenant shall not use, keep or permit to be used or kept in its Premises
      any foul or noxious gas or substance. Tenant shall not allow the Premises
      to be occupied or used in a manner offensive or objectionable to Landlord
      or other occupants of the Building by reason of noise, odors and/or
      vibrations or interfere in any way with other tenants or those having
      business therein, nor shall any animals or birds be brought or kept in or
      about the Premises, the Building, or the Project.

10.   Except with the prior written consent of Landlord, Tenant shall not sell,
      or permit the sale, at retail, of newspapers, magazines, periodicals,
      theater tickets or any other goods or merchandise in or on the Premises,
      nor shall Tenant carry on, or permit or allow any employee or other person
      to carry on, the business of stenography, typewriting or any similar
      business in or from the Premises for the service or accommodation of
      occupants of any other portion of the Building, or the business of a
      public barber shop, beauty parlor, nor shall the Premises be used for any
      illegal, improper, immoral or objectionable purpose, or any business or
      activity other than that specifically provided for in such Tenant's Lease.
      Tenant shall not accept hairstyling, barbering, shoeshine, nail, massage
      or similar services in the Premises or common areas except as authorized
      by Landlord.

11.   If Tenant requires telegraphic, telephonic, telecommunications, data
      processing, burglar alarm or similar services, it shall first obtain, and
      comply with, Landlord's instructions in their installation. The cost of
      purchasing, installation and maintenance of such services shall be borne
      solely by Tenant.

                               Exhibit A - Page 1
<PAGE>   27

12.   Landlord will direct electricians as to where and how telephone, telegraph
      and electrical wires are to be introduced or installed. No boring or
      cutting for wires will be allowed without the prior written consent of
      Landlord. The location of burglar alarms, telephones, call boxes and other
      office equipment affixed to the Premises shall be subject to the prior
      written approval of Landlord.

13.   Tenant shall not install any radio or television antenna, satellite dish,
      loudspeaker or any other device on the exterior walls or the roof of the
      Building, without Landlord's consent. Tenant shall not interfere with
      radio or television broadcasting or reception from or in the Building, the
      Project or elsewhere.

14.   Tenant shall not mark, or drive nails, screws or drill into the
      partitions, woodwork or drywall or in any way deface the Premises or any
      part thereof. Tenant shall not lay linoleum, tile, carpet or any other
      floor covering so that the same shall be affixed to the floor of its
      Premises in any manner except as approved in writing by Landlord. The
      expense of repairing any damage resulting from a violation of this rule or
      the removal of any floor covering shall be borne by the tenant by whom, or
      by whose contractors, employees or invitees, the damage shall have been
      caused.

15.   Tenant shall not place a load upon any floor of its Premises which exceeds
      the load per square foot which such floor was designed to carry or which
      is allowed by law.

      Business machines and mechanical equipment belonging to Tenant which cause
      noise or vibration that may be transmitted to the structure of the
      Building or to any space therein to such a degree as to be objectionable
      to Landlord or to any tenants in the Building shall be placed and
      maintained by Tenant, at Tenant's expense, on vibration eliminators or
      other devices sufficient to eliminate noise or vibration. The persons
      employed to move such equipment in or out of the Building must be
      acceptable to Landlord.

16.   Each tenant shall store all its trash and garbage within the interior of
      the Premises or as otherwise directed by Landlord from time to time.
      Tenant shall not place in the trash boxes or receptacles any personal
      trash or any material that may not or cannot be disposed of in the
      ordinary and customary manner of removing and disposing of trash and
      garbage in the city, without violation of any law or ordinance governing
      such disposal.

17.   Canvassing, soliciting, distribution of handbills or any other written
      material and peddling in the Building and the Project are prohibited and
      each tenant shall cooperate to prevent the same. No tenant shall make
      room-to-room solicitation of business from other tenants in the Building
      or the Project, without the written consent of Landlord.

18.   Landlord shall have the right, exercisable without notice and without
      liability to any tenant, to change the name and address of the Building
      and the Project.

19.   Landlord reserves the right to exclude or expel from the Project any
      person who, in Landlord's judgment, is under the influence of alcohol or
      drugs or who commits any act in violation of any of these Rules and
      Regulations.

20.   Without the prior written consent of Landlord, Tenant shall not use the
      name of the Building or the Project or any photograph or other likeness of
      the Building or the Project in connection with, or in promoting or
      advertising, Tenant's business except that Tenant may include the
      Building's or Project's name in Tenant's address.

21.   Tenant shall comply with all safety, fire protection and evacuation
      procedures and regulations established by Landlord or any governmental
      agency.

22.   Tenant assumes any and all responsibility for protecting its Premises from
      theft, robbery and pilferage, which includes keeping doors locked and
      other means of entry to the Premises closed.

23.   Landlord reserves the right to designate the use of the parking spaces on
      the Project. Tenant or Tenant's guests shall park between designated
      parking lines only, and shall not occupy two parking spaces with one car.
      No trucks, truck tractors, trailers or fifth wheel are allowed to be
      parked anywhere at any time within the Project other than in Tenant's own
      truck dock well. Vehicles in violation of the above shall be subject to
      tow-away, at vehicle owner's expense. Vehicles parked on the Project
      overnight without prior written consent of the Landlord shall be deemed
      abandoned and shall be subject to tow-away at vehicle owner's expense. No
      tenant of the Building shall park in visitor or reserved parking areas or
      loading areas. Any tenant found parking in such designated visitor or
      reserved parking areas or loading areas or unauthorized areas shall be
      subject to tow-away at vehicle owner's expense. The parking areas shall
      not be used to provide car wash, oil changes, detailing, automotive repair
      or other services unless otherwise approved or furnished by Landlord.
      Tenant will from time to time, upon the request of Landlord, supply
      Landlord with a list of license plate numbers of vehicles owned or
      operated by its employees or agents.

24.   No Tenant is allowed to unload, unpack, pack or in any way manipulate any
      products, materials or goods in the common areas of the Project including
      the parking and driveway areas of the Project. All products, goods and
      materials must be manipulated, handled, kept, and stored within the
      Tenant's Premises and not in any exterior areas, including, but not
      limited to, exterior dock platforms, against the exterior of the Building,
      parking areas and driveway areas of the Project. Tenant also agrees to
      keep the exterior of the Premises clean and free of nails, wood, pallets,
      packing materials, barrels and any other debris produced from their
      operation. All products, materials and goods are to enter and exit the
      Premises by being loaded or unloaded through dock high doors into trucks
      and or trailers, over dock high loading platforms into trucks and or
      trailers or loaded or unloaded into trucks and or trailers within the
      Premises through grade level door access.

25.   Tenant shall be responsible for the observance of all of the foregoing
      Rules and Regulations by Tenant's employees, agents, clients, customers,
      invitees and guests.

26.   These Rules and Regulations are in addition to, and shall not be construed
      to in any way modify, alter or amend, in whole or in part, the terms,
      covenants, agreements and conditions of any lease of any premises in the
      Project.

27.   Landlord may waive any one or more of these Rules and Regulations for the
      benefit of any particular tenant or tenants, but no such waiver by
      Landlord shall be construed as a waiver of such Rules and Regulations in
      favor of any other tenant or tenants, nor prevent Landlord from thereafter
      enforcing any such Rules and Regulations against any or all tenants of the
      Building.

28.   Landlord reserves the right to make such other and reasonable rules and
      regulations as in its judgment may from time to time be needed for safety
      and security, for care and cleanliness of the Building and the Project and
      for the preservation of good order

                               Exhibit A - Page 2
<PAGE>   28

      therein. Tenant agrees to abide by all such Rules and Regulations herein
      stated and any additional rules and regulations which are adopted.

                               Exhibit A - Page 3<PAGE>   1
                                                                   EXHIBIT 10.41

                                COMMERCIAL LEASE

     THIS AGREEMENT of Lease is made as of the 28th day of February, 1999, by
and between 1225 Financial Boulevard, Inc., a Nevada corporation ("Landlord")
and Computing Resources, Inc., a Nevada corporation ("Tenant").

                                  WITNESSETH:

     A.   PREMISES. In consideration of the rent hereinafter reserved and of the
covenants hereinafter contained, Landlord does hereby lease to Tenant, and
Tenant hereby leases from Landlord the land and approximately 7,327 square foot
building under construction located at 1225 Financial Blvd., Reno, Nevada,
Washoe County Assessor's Parcel No. 012-401-12, more particularly described on
Exhibit "A" hereto (hereinafter referred to as the Premises).

     B.   TERM. The term of this Lease shall commence on substantial completion
of construction and receipt of a certificate of occupancy (estimated to be on
or about the first day of June, 1999) and shall terminate at 12:00 o'clock,
midnight, on the last day of the calendar month that completes five (5) full
years of tenancy hereunder.

          If delivery of possession of the Premises shall be delayed beyond the
estimated date specified above for the commencement of the term of this Lease
through no fault of the Landlord, the latter shall not be liable to the Tenant
for any damage resulting from such delay and the Tenant's obligation to pay rent
shall be suspended and abated until possession of the Premises is delivered. In
the event of such a delay it is understood and agreed that the commencement of
the term of this Lease shall also be postponed until delivery of possession and
that the termination date of the term shall be correspondingly extended,
provided, however, that if possession is not delivered to Tenant on or before
October 1, 1999, Tenant may, at its option, elect to terminate this Lease.
Contemporaneously with the application for a certificate of occupancy Tenant
shall be notified of the application and shall have the right to conduct a
walk-through inspection of the building, but the term shall commence upon
receipt of the certificate of occupancy whether or not the inspection has
occurred.

     C.   RENT. In consideration of the leasing of the aforesaid Premises,
Tenant does hereby covenant and agree with Landlord to pay rental in the sum of
One Hundred Four Thousand Two Hundred Twelve and 80/100 Dollars ($104,212.80)
per annum in lawful currency of the United States of America. Said rental shall
be payable monthly in advance at the rate of Eight Thousand Six Hundred
Eighty-Four and 40/100 Dollars ($8,684.40) per month, commencing on the first
day of the first month of the term of this Lease. Said rental is based on $1.20
per square foot.

          The annual rental herein provided to be paid by Tenant to Landlord
shall be subject to increase in accordance with the provisions of this
paragraph. In computing said increase, it is agreed that, beginning one year
after the term of this Lease commences and each one year thereafter, the index
number hereinafter designated will be compared with its position as of the
first day of the month in which the term of the Lease commences. The
differences between the

                                       1
<PAGE>   2
index number for the month this Lease term commences and for the month in which
the next one-year period begins shall be converted to a percentage of the index
number for the month this lease term commences. Said percentage shall be the
percentage by which the annual rental initially reserved herein of One Hundred
Four Thousand Two Hundred Twelve and 80/100 Dollars ($104,212.80) shall be
increased and shall continue in such increased amount for each month of such
succeeding year thereafter until the next one-year index figure computation is
made as hereinabove provided. If the said computation would result in a
decrease in annual rental, then the annual rental for the succeeding year shall
be the same annual rental for the immediately past year.

          The index number to be used is the "Consumer's Price Index, U.S. City
Average, All Items (1982-84 = 100)," published by the U.S. Department of Labor,
Bureau of Labor Statistics. If the aforementioned index becomes unavailable,
the index to be used is the "Consumer's Price Index" issued by the U.S.
Department of Labor for San Francisco-Oakland-San Jose. If neither of the
foregoing indexes is issued, Landlord and Tenant shall agree upon a substitute
index to be employed in the computation of rent increases.

          It is agreed that the price index shall be the index as of the first
day of the month in which the term of this Lease commences, and, in the event
no figures are issued for such month for the index being used, then the first
figures of said index issued immediately after such date shall be considered
the base index number as though it had been issued on the first day of the
month in which the term of this Lease commences, provided, however, that the
rent herein required to be paid by Tenant to Landlord shall not be less than
One Hundred Four Thousand Two Hundred Twelve and 80/100 Dollars ($104,212.80)
per annum during the term of this Lease. Except as provided in paragraph X
hereof it is understood that the cost-of-living increase shall not be applied
to anything except the One Hundred Four Thousand Two Hundred Twelve and 80/100
Dollars ($104,212.80) annual rental reserved in this paragraph.

     D.   NET LEASE. It is the understanding and agreement of the parties
hereto that this is a clear "net" lease obligation, Tenant to bear all expenses
and make all payments consistent with the principle of the "net" Lease; and
Tenant hereby assumes and agrees to perform all duties and obligations with
relation to the Premises, the improvements thereon, and the appurtenances
thereto, as well as the use, operation, and maintenance thereof, including
being responsible for and making at Tenant's own expenses, all repairs to the
roof and structural portions of the improvements unless same is necessitated by
the negligence of Landlord, even though such duties and obligations would
otherwise be construed to be those of Landlord. Provided, however, that Tenant
shall not be required to pay any prior existing mortgages or any future
mortgages that are placed on the property by Landlord and provided further,
however, that for the first twelve (12) months of the lease term Tenant shall
not be responsible for the cost of any repairs to the improvements being
constructed upon the demised land required by failure of the building to comply
with all applicable laws and building codes, including the Americans with
Disabilities Act (the "ADA"), (any such failure being a "Construction Defect")
and it shall be Landlord's responsibility to repair all Construction Defects
during the said twelve (12) month period. In connection with this paragraph D,
Tenant shall have the same right as Landlord under all

                                       2
<PAGE>   3

guaranties and warranties of the building contractors and suppliers of
materials and equipment installed in the building by Landlord or building
contractor.

     E.   PAYMENT OF REAL ESTATE TAXES AND ASSESSMENTS. The parties hereto agree
that, as part of the consideration for the Lease and in addition to the rent
hereinbefore provided, Tenant shall, after the commencement of the term of this
Lease, and during the remainder of the term of this Lease and any renewal or
extension thereof, pay to the public officers charged with the collection
thereof, promptly as the same become due, all taxes, levies, licenses, excises,
franchises, imposts, penalties, and charges, general and special, ordinary and
extraordinary, of whatever name, nature, and kind, which are not or may
hereafter be levied, assessed, charged, or imposed, which are or may become a
lien (whether federal, state, city, county, or other public authority) upon this
Lease, the above-described Premises, the use or occupancy thereof, the buildings
and improvements now or hereafter situated thereon, or upon the occupants in
respect thereof. It is agreed that the above taxes shall not be in any way
construed to include any federal or state income taxes assessed against either
Landlord or Tenant.

          In the event Tenant should fail to pay the taxes or assessments
herein required to be paid by Tenant, prior to the date when a delinquent rate
would be imposed, then Landlord may, at its option, pay such taxes to the
public officers charged with the collection thereof, and the amount or amounts
of money so paid by Landlord, together with interest on all such amounts at the
rate of 2 percent per annum over the then existing prime rate charged by the
Bank of America, shall be repaid by Tenant to Landlord upon demand, and the
payment thereof may be collected or enforced by Landlord in the same manner as
though said amounts were an installment of rent specifically required by the
terms of this Lease to be paid by Tenant to Landlord within ten (10) days
after the date when Landlord demands repayment thereof; the election of
Landlord to pay such taxes shall not waive the default thus committed by Tenant.

          In the event that the financing institution where Landlord has
financing on the Premises shall require Landlord to prepay the real estate
taxes in monthly installments of one-twelfth of the annual real estate taxes,
then Landlord may elect to require the payment of the real estate taxes by
Tenant to be made in monthly installments of one-twelfth of the annual real
estate taxes, and Tenant agrees that it will make to Landlord monthly payments
of such real estate taxes in an amount equal to one-twelfth of said taxes
concurrently with the payment of rent.

          Even though this paragraph E. obligates Tenant to pay the costs of
special tax assessments assessed against the Premises, the parties hereto
agree that in the event of the installation by any legal taxing authority of
any improvements that shall not be for the specific benefit and use of Tenant
(including, but not limited to, sidewalks and storm and sanitary drains), and
said improvements may reasonably be expected to survive this Lease, then Tenant
shall only be required to pay a pro rata share of such assessments based upon
the useful life of the improvement and the balance of the term hereunder.

          If Tenant shall, in good faith, desire to contest the validity of
such taxes, or other charges covered by this paragraph E., it shall have
the right to do so, provided: (1) Tenant shall

                                       3
<PAGE>   4
promptly notify Landlord of its intention to institute such legal proceedings as
are appropriate, which proceedings shall be promptly instituted in good faith
and with due diligence; (2) such proceedings shall suspend the collection of
such taxes or other charges from Landlord, Tenant, and the Premises; (3) neither
the Premises nor any part thereof nor interest therein shall be in danger of
being sold, forfeited, terminated, cancelled, or lost; and (4) Tenant shall, if
taxes become delinquent thereby, deposit with Landlord or the appropriate
governmental authority such security for payment of the contested tax charge
with interest and penalties as Landlord or the governmental authority shall
reasonably require. Upon the conclusion of such contest of the validity of taxes
by Tenant, Landlord shall return to Tenant the sum hereinabove required to be
deposited by Tenant with Landlord during the period of such contest by Tenant,
provided, however, that Tenant shall, prior to being entitled to a return of
such monies, exhibit evidence of the payment of such contested taxes.

     F.   OTHER TAXES. Tenant agrees that during the term of this Lease or any
extension or renewal thereof, it will pay to the public officers charged with
the collection thereof any use tax or sales tax that might be imposed by any
governmental body against either Landlord or Tenant by reason of the occupancy
of the Premises and payment of rental therefor by Tenant; and Tenant further
covenants and agrees to pay such taxes prior to the same becoming delinquent
and, promptly following receipt of a request therefor from Landlord, to furnish
to Landlord evidence of such payment. In the event Tenant should fail to pay
such use or sales taxes, then Landlord, at it sole option, may pay said tax or
taxes, and the amount so paid by Landlord shall be added to and become
additional rental to be paid by Tenant to Landlord. Tenant shall have the option
of paying any such use or sales tax directly to the governmental body assessing
the same or to Landlord. In the event the same are paid to Landlord, it shall be
Landlord's obligation to pay the same to such governmental body.

     G.   INSURANCE. At its cost, Tenant agrees to obtain, concurrent with the
taking of occupancy of the Premises, and to maintain at all times during the
term of this Lease, with insurance companies qualified to do business in the
State of Nevada and having a general policyholder's rating of A+ and a financial
rating of AAAAA as established by A.M. Best Company, fire and extended coverage
insurance upon the Premises in the amount equal to the replacement cost of the
improvements thereon, excluding, however, cost of foundation, underground pipes,
wiring, and outside paving. Such policy or policies of insurance shall have
endorsed thereon "Inflation Guard Endorsement" to cover cost-of-living increases
so that the insurance coverage herein required shall be automatically increased
as the cost of living increases. In lieu of such "Inflation Guard Endorsement,"
Tenant shall automatically increase the amount of coverage annually to cover the
replacement cost of the improvements (less the cost of foundation, underground
pipes, wiring, and outside paving), as the cost of living increases. Such policy
or policies of insurance shall be so drawn and shall contain such provisions as
will protect both Landlord and Tenant as their respective interests appear. All
policies of insurance or certificates thereof as provided for in this paragraph
G and in paragraphs H. and I. below shall be delivered to Landlord and shall be
renewed from time to time by Tenant so that at all times the insurance
protection herein provided shall continuously exist, and evidence of each
renewal shall be submitted to Landlord at least 15 days prior to the expiration
date of each policy. Tenant may

                                       4

<PAGE>   5
maintain the insurance coverage through Tenant's blanket policy or policies and
in such event, Tenant shall deliver to Landlord certificates of insurance and
Tenant shall retain the original policies thereof.

      In the event of the destruction of the improvements located on the
demised land so as to render the Premises or a portion thereof untenantable by
Tenant, it shall be the obligation of Landlord, as hereinafter provided for, to
promptly and diligently repair or rebuild the building and improvements as well
as possible to their original condition, and the proceeds collected from the
insurance policy or policies herein described shall be made available to
Landlord for the purposes of effecting such repair or restoration, and the
parties hereto agree that such insurance proceeds shall be first applied to the
cost of any repairs and restoration before using any portion thereof for any
other purposes.

      In the event that there shall remain any portion of the proceeds of such
insurance policy or policies after the repair and reconstruction of any
building or improvements to a condition equal to the former condition thereof,
and provided no condition of default exists on the part of Tenant herein under
the terms of this Lease beyond any applicable cure period, then any such excess
shall be paid to Tenant herein. Tenant shall be entitled to all insurance
proceeds representing the value of the leasehold improvements being paid for by
Tenant (together with all replacements thereof and additions thereto).

      Tenant covenants and agrees with Landlord that Tenant will pay the
premiums for all of the insurance policies that Tenant is obligated to carry
under the terms of this Lease. If obtainable, such policy or policies of
insurance shall provide that the same may not be cancelled without the giving
of at least 15 days notice to Landlord of intent to cancel.

      Anything to the contrary herein notwithstanding, the parties hereto agree
that the provisions of this paragraph G. shall be subject to the requirements
of any institutional first mortgagee now or at any time hereafter holding a
first mortgage upon the Premises, including without limitation thereto the
types and amounts of coverage (so long as they are consistent with insurance
requirements for similar buildings in the Reno-Sparks, Nevada area), the named
insureds, the insurers, and the right of the mortgagee to apply any insurance
proceeds on account of the debt as provided in the next paragraph.

      The right of a mortgagee to require payment of insurance proceeds on
account of a mortgage debt shall extend only to an institutional first
mortgagee, and in the event that insurance proceeds are taken by such a
mortgagee, if the Premises are to be reconstructed in accordance with paragraph
U. hereof, Landlord shall immediately obtain refinancing or otherwise shall
immediately pay to an escrow agent approved by both Landlord and Tenant the
amount taken by such mortgagee, and the escrow agent shall hold and disburse
the funds for the reconstruction and repair of the Premises.

      II.   RENT INSURANCE. In order to insure the payment of rent during the
period during which the Premises shall be untenantable by reason of damage by
fire, wind or other casualty,

                                       5

<PAGE>   6

Tenant agrees to secure "rent insurance" covering a period not less than twelve
(12) months so that the rent will be paid to Landlord during such period that
such building is untenantable, and such "rent insurance" shall provide for 60
percent of the annual rent payable by Tenant to Landlord provided for herein.

      I.    PUBLIC LIABILITY INSURANCE. Tenant covenants and agrees with
Landlord that during the entire term of this Lease, Tenant will indemnify and
save harmless Landlord, its officers, agents and employees against any and all
claims, debts, demands, or obligations that may be made against Landlord, its
officers, agents or employees or against Landlord's title in the Premises
arising by reason of any negligent acts or omissions of Tenant, its officers,
agents, or employees in occupying the Premises, but Tenant shall not be
obligated to indemnify Landlord for damages or injuries arising from any
negligent acts or omissions of Landlord, its officers, agents, or employees.
Landlord shall indemnify, defend, and hold harmless Tenant, its officers,
agents and employees with respect to negligent acts or omissions of Landlord,
its officers, agents and employees. If it becomes necessary for Landlord to
defend any action seeking to impose any such liability by virtue of alleged
negligent acts or omissions of Tenant, its officers, agents or employees,
Tenant will pay Landlord all costs of court and reasonable attorney and expert
witness fees incurred by Landlord in such defense, in addition to any other
sums that said Landlord may be called upon to pay by reason of the entry of a
judgment or decree against Landlord in the litigation in which such claim is
asserted. To this end, Tenant further contracts and agrees to procure and carry
at its own expense insurance for bodily injury and property damage including
personal injury not less than One Million Dollars and No/100 ($1,000,000) per
occurrence and Two Million and No/100 Dollars ($2,000,000) aggregate, and an
umbrella/excess liability policy of not less than Five Million and No/100
Dollars ($5,000,000). Tenant shall cause said insurance policy or policies to
specifically name Landlord as an additional insured and furnish Landlord with
a certificate of said policy or policies. Tenant shall not do or permit any act
or thing that shall render such policy invalid or that shall affect the
validity thereof. If Tenant fails or neglects to carry such insurance as herein
provided and to pay all insurance premiums therefor, or if said policy of
insurance shall be cancelled for any cause whatsoever and Tenant does not
promptly obtain other insurance prior to or simultaneously with such
cancellation, Landlord may effect such insurance in its own name to the extent
herein provided and pay the premium therefor, and any sums paid by Landlord for
said premiums shall be deemed additional rent hereby reserved and shall be
payable by Tenant within ten (10) days after demand therefor from Landlord,
together with interest at the rate of 10 percent per annum.

      Landlord and Tenant each waive any claim against the other for any damage
to property covered by insurance. Each party agrees to obtain a waiver of
subrogation from its insurance carrier permitting this waiver.

      J.    UTILITY CHARGES. Tenant agrees and covenants to pay all utility
charges, including, but not limited to, water, gas, electricity, sewage, and
removal of waste materials used on or arising from use of the Premises and to
pay the same monthly or as they shall become due. Landlord hereby represents
and warrants that, at the time of commencement of this Lease, sufficient water,
electricity, telephone, sewage facilities, and garbage removal will be
available

                                       6
<PAGE>   7
to Tenant for Tenant's intended use of the Premises.

        K.      AIR-CONDITIONING AND HEATING. For the first twelve (12) months
of the term of this Lease Landlord shall maintain the air-conditioning,
heating equipment, cooling systems, and mechanical equipment installed in the
building. Thereafter, Tenant shall assume full and complete responsibility for
their operation, maintenance, repair, and replacement and Landlord shall not be
liable to Tenant for the failure or discontinuance of the air-conditioning,
heating, and cooling systems. At no time shall Landlord be responsible for the
provision of any utility service to the Premises. At the end of the first year
of the term of this Lease Landlord shall assign to Tenant any and all remaining
warranties obtained by Landlord regarding such air-conditioning and heating
systems.

        L.      FIXTURES AND PERSONAL PROPERTY. It is agreed between the
parties hereto that Tenant may make non-structural alterations or install any
trade fixtures, equipment, and other personal property on the Premises of a
temporary or permanent nature, and Landlord agrees that Tenant shall have the
right at any time, provided Tenant is not in default of any of the terms of
this Lease, to remove any and all such alterations, trade fixtures, equipment,
and other personal property that it may have stored or installed in the
Premises; provided further, however, that in such event Tenant shall restore
the Premises substantially to the same condition, except for ordinary wear and
tear, in which they were at the time Tenant took possession. Tenant shall not
be obligated to restore the Premises substantially to the same condition in
which they were at the time Tenant took possession in the event of changes and
alterations made upon the written approval of Landlord or in the event the
Premises are surrendered because of default on the part of Landlord.

                The provisions hereof shall not be construed to prevent Tenant
from financing or refinancing the purchase of equipment or machinery, and
Landlord shall execute such reasonable documents in favor of any financial
institution holding security thereon, subordinating rights of Landlord thereof;
nor shall there be a lien on any work in process of Tenant.

        M.      TENANT FORBIDDEN TO ENCUMBER LANDLORD'S INTEREST. It is
expressly agreed and understood between the parties hereto that nothing in this
Lease shall ever be construed as empowering Tenant to encumber or cause to be
encumbered the title or interest of Landlord in the Premises in any manner
whatsoever. In the event that, regardless of this prohibition, any person
furnishing or claiming to have furnished labor or materials at the request of
Tenant or of any person claiming by, through, or under Tenant shall file a lien
against Landlord's interest therein, Tenant, within 30 days after being
notified thereof, shall cause said lien to be satisfied of record or the
Premises released therefrom by the posting of a bond or other security as
prescribed by law, or shall cause same to be discharged as a lien against
Landlord's interest in the Premises by an order of a court having jurisdiction
to discharge such lien.

        N.      LAWFUL USE OF PREMISES. Tenant further covenants and agrees
that said demised land and all buildings and improvements thereon during the
term of this Lease shall be used only and exclusively for lawful purposes; and
that said Tenant shall not knowingly use or suffer anyone to use said Premises
for any purpose in violation of the laws of the United States, the State of

                                       7

<PAGE>   8
Nevada, the County of Washoe, City of Reno, or any other governmental unit
wherein the Premises may be located.

        O.      COMPLIANCE WITH REGULATIONS OF PUBLIC BODIES. Tenant covenants
and agrees that it will, at its own cost, make such improvements on the
Premises and perform such acts and do such things as may be lawfully required
by any public body having jurisdiction over said property in order to comply
with such sanitary, zoning, setback, and other similar requirements designed to
protect the public, applicable only to the manner of Tenant's particular use
and occupancy of the Premises which is distinct from normal office usage.
Tenant also agrees to comply with all deed restrictions.

                The undertakings in this paragraph O. are conditioned upon
Landlord delivering the Premises to Tenant with the improvements constructed
thereon complying with all building codes, ADA requirements, zoning ordinances,
setback requirements, sanitary requirements, and other similar requirements in
effect at the time of the commencement of the term of this Lease, and Tenant
shall not be required to make any structural changes to meet such requirements
as they from time to time may exist.

        P.      SIGNS. During the term of this Lease, Tenant may install such
signs on the Premises as may be reasonable, provided, however, that such signs
shall be first approved by Landlord, which approval shall not be unreasonably
withheld or delayed. Such signs may be attached to said building in such manner
as may be necessary, provided that upon the termination of this Lease or any
renewal or extension thereof, the same shall be removed by Tenant and that such
part of the property at which said sign may have been attached shall be
restored, at the expense of Tenant, to the same condition as prior to the
placing of said sign.

        Q.      ATTORNEYS' FEES. In the event of a dispute because of which
either party to this Lease employees counsel to pursue or protect any of the
rights afforded that party by the terms hereof, or the terms of any related
agreement, or to defend against the claims of the other party hereto, in or out
of court, in bankruptcy or arbitration proceedings or otherwise, the
non-prevailing party agrees to pay the reasonable attorneys' fees, expert
witness' fees and costs incurred by the prevailing party in such dispute.

        R.      LANDLORD'S RIGHT TO INSPECT PREMISES. Tenant agrees and
covenants that Landlord or its agents, for the purpose of examining or
inspecting the condition of the Premises, shall have access to the said
Premises upon the giving of 3 days' notice by Landlord to Tenant of Landlord's
intent to examine or inspect the Premises. Notwithstanding the foregoing,
Landlord, in the event of any emergency such as, but not limited to, a fire,
flood, or severe windstorm, shall have free access to said Premises for the
purposes of examining or inspecting damage done to the Premises.

                Landlord shall have the right to show the Premises during the
90 days prior to termination to prospective tenants, at reasonable times
during normal business hours upon reasonable advance notice to Tenant. Landlord
further reserves the right to show the Premises

                                       8
<PAGE>   9
to prospective purchasers upon reasonable advance notice to Tenant. Except in
the event of an emergency, Landlord shall not have entrance to the Premises
without the accompaniment of an employee of Tenant.

          In the event of any entry by Landlord under this paragraph R,
Landlord shall use commercially reasonable efforts to minimize any disruption
to the operation of Tenant's business in the Premises.

     S.   ASSIGNMENT OR SUBLETTING. Tenant may, with the consent of Landlord,
which consent shall not be unreasonably withheld or delayed more than twenty
(20) days after written notice of Tenant's request for consent, assign this
Lease or sublet in whole or in part the Premises provided that Tenant herein
shall continue to remain liable and responsible for the payment of rental due
hereunder. For the purpose of this clause, a merger or consolidation of Tenant
with another corporation or an assignment or sublease to an affiliate or a
wholly owned subsidiary of Tenant, shall not constitute an assignment or
sublease requiring the consent of Landlord provided that the merged
corporation, affiliate or subsidiary agrees in writing to be bound by the terms
of this Lease. Landlord shall have the right to sell, transfer or assign the
leased Premises without consent of Tenant, and Tenant agrees to attorn to
landlord's purchaser, transferee or assignee. Such sale, transfer or assignment
by Landlord shall relieve Landlord of its obligations hereunder if the
purchaser, transferee or assignee assumes in writing Landlord's obligations
hereunder.

     T.   REPAIRS. Tenant, after the commencement of the term of this Lease,
shall, at its own expense, maintain the Premises in as good condition and
repair as the Premises were upon the commencement of this term, except for (1)
reasonable wear and use during the term of this Lease, or any extension
thereof, (2) structural repairs (3) repairs required to be made by Landlord
pursuant to the provisions of paragraphs D and K of this Lease, (4) repairs
made necessary by reason of fire or other casualty, or by the negligent acts or
omissions by Landlord or is agents or (5) as otherwise specifically provided
for in this Lease.

     U.   DESTRUCTION OR DAMAGE BY FIRE OR OTHER HAZARDS. The parties hereto
agree that if the improvements erected or to be erected upon the Premises are
partially or totally destroyed or damaged by fire or other hazard then Landlord
shall promptly provide Tenant with an estimated time frame for completion of
the restoration and promptly repair and restore such improvements as soon as it
is reasonably practical to restore them so that they are restored substantially
to the prior existing condition, subject to such changes as Tenant may
reasonably require, and provided, however, that such changes will not increase
the cost of restoration unless Tenant agrees to pay for such increased cost.
Due allowance, however, shall be made for reasonable time necessary for
Landlord to adjust the loss with the insurance companies insuring the Premises
at the time of the happening of the fire or the casualty, but in no event shall
such adjustment result in Landlord not being obligated to make such
restoration, and in any event the restoration must commence within 45 days
after the happening of such fire or other casualty, and the completion thereof
must be pursued diligently after such fire, casualty, or disaster with
reasonable allowance made for delay occasioned by strike, lockouts, or
conditions beyond the control of Landlord, but in any event, said restoration
must be completed on or before one year after the happening of such fire

                                       9
<PAGE>   10

or other casualty. If such restoration is not completed within said one-year
period, then Tenant, at its option, may cancel this Lease with abatement of
rent as of the date of the loss, provided, however, that Landlord shall be
entitled to retain the proceeds of any rent insurance as provided for in
paragraph H. hereof. However, failure of the insurance company to authorize
such restoration work will be considered a reasonable delay.

          In the event that there is total destruction of the Premises and
Landlord's estimate of the time required for restoration exceed one (1) year or
Landlord fails to completely restore and rebuild the same within one (1) year
after such fire, casualty, or other disaster, then, in either event Tenant may,
at its option, elect to terminate and cancel this Lease, in which event this
Lease shall be terminated upon written notice by Tenant to Landlord and neither
party shall thereafter have any further obligation with respect to the other.

          Should the Premises or any portion thereof be rendered untenantable
by reason of the damage or destruction thereto caused by fire, casualty, or
disaster during the term of this Lease as provided for in this paragraph, rent
shall be abated in proportion to the areas of the Premises rendered
untenantable from the date of the happening of the fire or other casualty or
disaster up to the date of restoration of the Premises, except any rent that
may be received from rent insurance procured pursuant to this Lease. However,
no rent shall accrue for any portion of the Premises unless Tenant is able to
conduct its usual business on that portion of the Premises that remains
tenantable. If, after the date of the happening of the fire or other casualty
or disaster, Tenant shall have paid any rents for a period beyond such date,
Tenant shall be entitled to a proportionate refund.

          In the event of a complete or total destruction of the improvements
or destruction to such an extent that the Premises are rendered untenantable by
Tenant, Landlord shall not be required to restore or rebuild the improvements
in the event there are less than three years remaining of the term of this
Lease, unless the parties hereto agree to extend the term of this Lease for not
less than three years from the date of completion by Landlord of such
restoration.

          In the event that the Lease is cancelled as provided for in this
paragraph U., Tenant shall be entitled to all insurance proceeds representing
the value of leasehold improvements paid for or agreed to be paid for by Tenant
together with all replacements thereof and additions thereto, and all proceeds
representing the value of property of Tenant that is damaged or destroyed,
provided that Landlord first receives the proceeds covering the replacement
value of Landlord's building from all undesignated proceeds.

     V.   DEFAULT BY TENANT. Each of the following shall be deemed a default by
Tenant and a breach of this Lease:

          1.   The filing of a petition by or against Tenant for adjudication
as a bankrupt under the U.S. Bankruptcy Code, as now or hereafter amended or
supplemented, or for reorganization under Chapter 11 of said Bankruptcy Code,
or the filing of any petition by or against Tenant under any further bankruptcy
act for the same or similar relief. Also constituting

                                       10
<PAGE>   11

default is the dissolution or the commencement of any action or proceeding for
the dissolution or liquidation of Tenant, whether instituted by or against
Tenant or for the appointment of a receiver or trustee of the property of
Tenant.

     2.   The taking possession of the Premises or property of Tenant upon the
Premises by any governmental officer or agency pursuant to statutory authority
for the dissolution, rehabilitation, reorganization, or liquidation of Tenant.

     3.   The making by Tenant of any "assignment for the benefit of creditors."

If any event of default described in subparagraph (1), (2) or (3) above shall
be involuntary on the part of Tenant, there shall be no default within the
meaning of this Lease, if such event is dismissed or vacated by Tenant within
60 days from the occurrence of such event; otherwise such event shall
constitute a default hereunder.

     4.   A failure to pay the rent herein reserved, or additional rent, or any
part thereof, for a period of 5 days after receipt of written notice.

     5.   Failure in the performance of any other covenant or condition of this
Lease on the part of Tenant to be performed, for a period of 30 days after
receipt of written notice.

          a.   For the purposes of subparagraph (5) of this paragraph V., no
failure on the part of Tenant in the performance of work required to be
performed or acts to be done or conditions to be modified shall be deemed to
exist if steps shall have, in good faith, been commenced promptly by Tenant to
rectify the same and shall be prosecuted to completion with diligence and
continuity. If the matter in question shall involve building construction and
if Tenant shall be subject to unavoidable delay, either by reason of
governmental regulations restricting the availability of labor or materials, or
by strikes or other labor troubles, or by reason of conditions beyond the
control of Tenant, Tenant's time to perform under said subparagraph (5) of this
paragraph V. shall be extended for a period commensurate with such delay.

          b.   In the event of any such default of Tenant, Landlord may serve a
written notice upon Tenant that Landlord elects to terminate this Lease upon a
specified date not less than 30 days after the date of the serving of such
notice, except that in the case of a default under subparagraph (4) above for
nonpayment of rent such date shall not be less than 5 days after the notice
given under said subparagraph (4), and if the default remains uncured or the
period is not extended as herein provided, this Lease shall then expire on the
date so specified as if that date had been originally fixed as the expiration
date of the term herein granted.

          c.   In the event this Lease shall be terminated as hereinbefore
provided, or by summary proceedings or otherwise, or in the event the Premises
or any part thereof shall be abandoned by Tenant, Landlord, or its agents,
servants, or representatives may immediately or at any time thereafter, reenter
and resume possession of said Premises or such part thereof, and remove all
persons and property therefrom, either by summary dispossession proceedings or
by

                                       11
<PAGE>   12
a suitable action or proceeding at law, without being liable for any damages
therefor. Moving out of the Premises or leaving the Premises vacant shall not
be deemed an abandonment of the Premises, provided that Tenant continues to pay
the rent as and when due. Reentry by Landlord shall not be deemed an acceptance
of a surrender of this Lease.

          In the event that this lease is terminated by summary proceedings, or
otherwise as provided herein, or if the Premises shall have been abandoned and
whether or not the Premises shall be relet, the entire amount of rent that
would be paid to the expiration date of this Lease shall become due and
payable. In the event of such termination or abandonment, Landlord shall be
obligated to use its best efforts to mitigate any damages it may have against
Tenant. In the event the Premises are relet by Landlord, Landlord shall be
entitled to recover from Tenant, and Tenant shall pay to Landlord, in addition
to any other damages becoming due hereunder, an amount equal to the amount of
all rents and additional rent reserved under this Lease, less the net rent, if
any, collected by Landlord on reletting the Premises, which shall be due and
payable by Tenant to Landlord on the several days on which the rent and
additional rent reserved in this Lease would have become due and payable; that
is to say, upon each of such days Tenant shall pay to Landlord the amount of
deficiency then existing. Such net rent collected on reletting by Landlord
shall be computed by deducting from the gross rents collected all reasonable
expenses incurred by Landlord in connection with the reletting of the Premises
or any part thereof, including broker's commissions and the cost of repairing,
renovating, or remodeling said Premises; however, the expenses to be deducted
in computing the net rent collected on reletting shall not include the cost of
performing any covenant contained herein required to be performed by Tenant.

          The obligation of Landlord to use its best efforts to mitigate any
damages it may have against Tenant shall not preclude the right of Landlord to
obtain by judicial process a judgment for the entire amount of rent that would
be paid to the expiration date of this Lease, if said Lease is terminated by
summary proceedings or otherwise as provided herein. In the event Landlord
obtains a judgment in such manner, Landlord shall be obligated to use its best
efforts to mitigate any damages it may have recovered in accordance with the
provisions of this paragraph.

     W.   SUBORDINATION. This Lease, its terms, condition, and all leasehold
interests and rights hereunder, are expressly made, given, and granted subject
and subordinate to the lien of any bona fide first mortgage that Landlord may
secure from any bank, life insurance company, savings and loan association, or
other recognized lending institution; and Tenant agrees to execute any
instrument or instruments required by the mortgagee to subordinate the terms of
this Lease to any such first mortgage that may be placed upon the Premises by
Landlord; provided, however, that:

          1.   Said Mortgagee enters into a nondisturbance agreement with
Tenant obligating any party acquiring title or right of possession under or by
virtue of such mortgage to be bound by this Lease and by all of Tenant's rights
hereunder, provided that Tenant is not then is continued default after notice
in the payment of rent or otherwise under the terms of this Lease as it may
hereafter be modified from time to time.

          2.   Tenant is not required to become responsible or liable for the
payment of

                                       12
<PAGE>   13
any sum or sums secured by such first mortgage, and further provided that such
first mortgage contains provisions, or that the mortgagee will agree by
separate instrument, to notify Tenant of any default on the part of Landlord in
payment or default under any other terms and conditions of the mortgage. Should
Tenant elect to exercise its right to make payment to a mortgagee in order to
cure a default on the part of Landlord-Mortgagor, Tenant may deduct any sums so
paid to cure such a default from the next ensuing payment or payments or rental
as is in this Lease provided.

            3.    Tenant agrees to notify mortgagee of any default on the part
of Landlord under any of the terms and conditions of this Lease concurrently
with the delivery of any notice of default to Landlord, said notice being only
for the purpose of informing mortgagee of Landlord's default. Said notice shall
not be construed as placing any obligations on mortgagor beyond those
obligations specified in the mortgage between mortgagee and Landlord hereunder.
Tenant's obligation to notify a mortgagee shall only extend to those mortgagees
for whom Tenant has received from Landlord a copy of the mortgage and notice of
mortgagee's address.

            4.    Notwithstanding anything at law or in this Lease to the
contrary, the nondisturbance provision as provided for in subparagraph (1)
hereof shall not apply to a construction loan lender prior to such time as
Tenant occupies the Premises, and Tenant agrees to execute a separate
subordination agreement in favor of a construction loan lender, which agreement
will provide that the nondisturbance provision will not affect said
construction loan lender until such time as Tenant occupies the Premises.

      X.    OPTION TO RENEW. Provided Tenant is not in default under the terms
of this Lease at the time of the exercise of the herein contained option and at
the commencement of any option period, Landlord grant to Tenant the option to
renew this Lease for three additional terms of five years each under the same
terms and conditions as contained herein, except that the base rent for the
first year of each of the option periods shall be set at the then fair market
rental value of the premises, to be determined by mutual agreement of Landlord
and Tenant, or in the absence of such agreement before three months before
expiration of the then current lease term, by appraisal utilizing one appraiser
selected by each of the parties and a third appraiser selected by the first two
the average of the closest two appraisals shall be the base rental rate for the
first year of each option period and the base rent for each subsequent year of
each option period shall be determined by reference to increases in the CPI
index as is set forth in paragraph C. hereof.

            In the event Tenant should elect to exercise its option to renew,
Tenant shall deliver to Landlord notice of its intent to renew this Lease, such
notice to be delivered in writing to Landlord at least six months prior to the
expiration of this Lease or any renewal thereof.

      Y.    CONDEMNATION. It is further understood and agreed that if, at any
time during the continuance of this Lease, the legal title to the demised land
or the improvements located thereon or any portion thereof be taken,
appropriated, or condemned by reason of eminent domain, there shall be such
division of the proceeds of award in such condemnation proceedings and such
abatement of rent and other adjustments made as shall be just and equitable
under the

                                       13
<PAGE>   14
circumstances. If Landlord and Tenant are unable to agree upon what division,
abatement of rent, or other adjustments are just and equitable within 60 days
after such award shall have been made, then the matters in dispute shall be
submitted to arbitration in accordance with the then-existing commercial
arbitration rules of the American Arbitration Association, and this Lease shall
be specifically enforceable under the prevailing arbitration law, and judgment
upon the award rendered may be entered in the court of the State of Nevada
having jurisdiction.

     Notwithstanding anything to the contrary herein contained, any proceeds of
award in such condemnation proceedings shall be paid in favor of the party for
whom said award is specifically granted. That is to say, that in the event
Tenant is not specifically awarded proceeds from said proceedings, Tenant shall
not receive any such proceeds.

     If this Lease is terminated in any manner herein provided in this
paragraph Y., rent for the last month of Tenant's occupancy shall be prorated,
and Landlord agrees to refund to Tenant any rents paid in advance.

     If the legal title to the entire Premises is wholly taken by condemnation
proceedings, this Lease shall be automatically cancelled. If legal title to a
portion of the Premises is taken and Tenant reasonably and in good faith
determines that such taking renders the remainder of the Premises unfit for its
intended use, Tenant, at its sole option, may elect to terminate this Lease. In
the event the parties cannot agree upon what partial taking renders the
remainder of the Premises unfit for its intended use, then the matter shall be
submitted to arbitration in the manner provided above. In general, it is the
intent of this paragraph Y. that upon condemnation the parties hereto shall
share in the award to the extent that their respective interests are destroyed,
damaged, or depreciated by the exercise of the right of eminent domain.

     Z.   NOTICES. All notices required by the law and this Lease to be given
by one party to the other shall be in writing, and the same shall be served by
delivery in person by overnight courier service or by certified mail, return
receipt requested, in postage prepaid envelopes addressed to the following
addresses or such other addresses as may be by one party to the other
designated in writing:

     AS TO LANDLORD:  Ranson W. Webster, President
                      1225 Financial Boulevard, Inc.
                      c/o Computing Resources, Inc.
                      1285 Financial Boulevard
                      Reno, Nevada 89502

     AS TO TENANT:    Harry D. Hart, President
                      Computing Resources, Inc.
                      1285 Financial Boulevard
                      Reno, Nevada 89502

Either party may change its address for notices and/or add additional
recipients by notice to the

                                       14

<PAGE>   15
other party hereunder.

     AA.  QUIET ENJOYMENT. So long as Tenant observes the terms of this Lease,
Tenant shall have peaceful and quiet enjoyment of the Premises.

     BB.  MISCELLANEOUS The covenants and agreements contained herein shall
bind and the benefits and advantages shall inure to the respective heirs,
executors, administrators, successors, and assigns of the parties hereto.

          Whenever used, the singular number shall include the plural, and the
plural number shall include the singular; the use of any gender shall be
applicable to all genders.

          All covenants, agreements, and undertakings shall be joint and
several.

          The parties agree that either may record a Memorandum of this Lease
in the Official Records of Clark County, State of Nevada, and that this Lease
shall be governed by and construed in accordance with the laws of the State of
Nevada.

          No modifications or changes shall be made to this Lease unless the
same are made in writing and signed by the party against whom enforcement is
sought.

     IN WITNESS WHEREOF, this agreement has been executed as of the day and
year first above written.

                                        LANDLORD:

                                        By: [Signature Illegible]
                                           -------------------------------------

                                        Its: President
                                            ------------------------------------

                                        TENANT:

                                        By: [Signature Illegible]
                                           -------------------------------------

                                        Its: Chairman & C.E.O.
                                            ------------------------------------

                                       15

<PAGE>   16
                                  DESCRIPTION

All that certain lot, piece or parcel of land situate in the County of Washoe,
State of Nevada, described as follows:

     Parcel 4 as shown on 3rd Parcel Map for JOHN A. DERMODY, INC., Parcel Map
     No. 1362, filed in the office of the Recorder of Washoe County, Nevada, on
     August 13, 1982 as File No. 809789.

     EXCEPTING THEREFROM all that certain parcel of land being more
     particularly described as follows:

     Commencing at the Southwesterly corner of Parcel 4 of Parcel Map No. 1362;
     said point being the True Point of Beginning; Thence S 64 degrees 49'04"
     E., 199.00' along the Southerly line of said Parcel 4; Thence N. 25 degrees
     10'56" E., 200.00' to a point on the Southerly right of way of Equity
     Avenue, Thence N. 64 degrees 49'04" W., 176.50' along said Southerly right
     of way to a point of curvature; Thence 48.45' along the arc of a curve to
     the left, having a central angle of 92 degrees 32'14" and a radius of
     30.00' to a point on the Easterly right of way of Corporate Boulevard;
     Thence S. 22 degrees 38'42" W., 168.84' along said right of way returning
     to the True Point of Beginning.

     AND FURTHER EXCEPTING THEREFROM all that certain parcel of land being more
     particularly described as follows:

     Commencing at the Southwesterly corner of Parcel 4 of Parcel Map No. 1362;
     Thence S. 64 degrees 49'04" E., 199.00' along the Southerly line of said
     Parcel 4 to the True Point of Beginning; Thence continuing along said South
     line, S. 64 degrees 49'04" E., 447.50' to a point; Thence N. 25 degrees
     10'56" E., 200.00' to a point on the Southerly right of way of Equity
     Avenue; Thence N. 64 degrees 49'04" W., 447.50' along the said right of way
     to a point; Thence S. 25 degrees 10'56" W., 200.00' returning to the True
     Point of Beginning.

                                   EXHIBIT A

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00016-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00016-of-00352.parquet"}]]