Document:

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                                                                    EXHIBIT 10.6

                       MULTILINK TECHNOLOGY CORPORATION

               AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT

     THIS INVESTORS' RIGHTS AGREEMENT is made as of March 31, 2000 by and among
Multilink Technology Corporation, a California corporation (the "Company"), and
the First Series A Purchasers, the Second Series A Purchasers, the Series B
Purchasers, and the Purchasers subsequently added pursuant to Section 6.12
hereof ("Additional Purchasers"), each of which is listed on the signature pages
attached hereto (collectively, the "Purchasers").

                               R E C I T A L S:
                               ---------------

     WHEREAS, the Company and the First Series A Purchasers entered into (a)
that certain Series A Convertible Preferred Stock Purchase Agreement dated as of
June 11, 1999, and amended January 20, 2000 (the "First Series A Purchase
Agreement") providing for, among other things, the sale by the Company and the
several purchase by the First Series A Purchasers of shares of the Company's
Series A Convertible Preferred Stock, par value $0.0001 per share (the "Series A
Preferred") and (b) that certain Investor Rights Agreement dated as of June 11,
1999 (the "First Series A Investor Rights Agreement");

     WHEREAS, the Company and the Second Series A Purchasers entered into (a)
that certain Series A Convertible Preferred Stock Purchase Agreement dated as of
September 28, 1999, and amended January 20, 2000 (the "Second Series A Purchase
Agreement") providing for, among other things, the sale by the Company and the
several purchase by the Second Series A Purchasers of shares of the Series A
Preferred and (b) that certain the Investor Rights Agreement dated as of
September 28, 1999 (the "Second Series A Investor Rights Agreement" and together
with the First Series A Investor Rights Agreement, "Series A Investor Rights
Agreements");

     WHEREAS, the Company and the Series B Purchasers are entering into that
certain Series B Convertible Preferred Stock Purchase Agreement dated of even
date herewith (the "Series B Purchase Agreement") providing for, among other
things, the sale by the Company and the several purchase by the Series B
Purchasers of shares of the Company's Series B Convertible Preferred Stock, par
value $0.0001 per share (the "Series B Preferred");

     WHEREAS, the sale of the Series B Preferred to the Series B Purchasers is
conditioned upon the rights set forth herein, including the registration rights
set forth herein, being extended to each of such Purchasers, and the Company
desires to extend such rights herein;

     WHEREAS, the Company, the First Series A Purchasers and the Second Series A
Purchasers now desire to amend and restate the First Series A Investor Rights
Agreement and the Second Series A Investor Rights Agreement in their entirety to
combine such agreements into a single agreement and to add the Series B
Purchasers and Additional Purchasers as parties and to read as set forth below.
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     NOW THEREFORE, in consideration of the foregoing, the parties agree as
follows:

     1.   Registration Rights.
          -------------------

          1.1. Certain Definitions.  As used in this Agreement, the following
               -------------------
terms shall have the following respective meanings:

          "Affiliate" of any person or entity shall mean any other Person or
           ---------
entity which, directly or indirectly, controls, is controlled by or is under
common control with such Person or entity.

          "Blue Sky Laws" shall mean state securities laws and applicable
           -------------
regulations.

          "Board of Directors" shall mean the Board of Directors of the Company.
           ------------------

          "Class B Common Stock" shall mean the Class B Common Stock of the
Company, par value $0.0001 per share.

          "Commission" shall mean the Securities and Exchange Commission of the
           ----------
United States or any other U.S. federal agency at the time administering the
Securities Act.

          "Common Stock" shall mean the Class A Common Stock of the Company,
           ------------
par value $0.0001 per share and/or the Class B Common Stock, as applicable.

          "Holder" shall mean each of the Purchasers (and their transferees as
           ------
permitted by Section  1.11) holding Registrable Securities or securities
convertible into or exercisable for Registrable Securities.

          "Initiating Holders" shall mean Holders who in the aggregate hold at
           ------------------
least fifty percent (50%) of the Registrable Securities and join in a request
referred to in Section 1.2(a).

          "Market Stand-Off Period" shall have the meaning set forth in Section
           -------------------------
1.12.

          "Other Holders" shall mean holders of Company securities, other than
           -------------
Holders, proposing to distribute their securities pursuant to a registration
referred to in this Agreement.

          "Preferred Stock" shall mean the Series A Preferred and the Series B
           ---------------
Preferred.

          "Registrable Securities" shall mean any Common Stock hereafter
           ----------------------
acquired by any Holder issued or issuable on conversion of any Series A
Preferred or Series B Preferred now held or hereafter acquired by any Holder,
excluding shares of Common Stock that have been (A) sold to or through a broker
or dealer or underwriter in a public distribution or a public securities
transaction, including, but not limited to, a registration pursuant to which
such shares have been disposed of in accordance with the registration statement
covering them, (B) distributed to the public pursuant to Rule 144 (or any
similar rule then in force) under the Securities Act, or (C) sold or transferred
in a transaction exempt from the registration and prospectus delivery
requirements of the Securities Act so that a new certificate(s) or other
evidence of ownership for

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such shares not bearing restrictive legends have been delivered and no other
restrictions on transfer exist.

     The terms "register," "registered" and "registration" refer to a
                ---------   ----------       ------------
registration effected by preparing and filing a registration statement in
compliance with the Securities Act, and the declaration or ordering of the
effectiveness of such registration statement.

     "Registration Expenses" shall mean all expenses, excluding Selling Expenses
      ---------------------
(as defined below) except as otherwise stated below, incurred by the Company in
complying with Sections 1.2, 1.3 and 1.4 hereof, including, without limitation,
all registration, qualification and filing fees, printing expenses, escrow fees,
fees and disbursements of counsel for the Company and of the independent
accountants for the Company and Blue Sky fees and expenses. Registration
Expenses specifically shall exclude Selling Expenses and the fees and
disbursements of counsel representing any Selling Holder, all of which shall be
borne by such Holder in all cases.

     "Registration Notice" shall have the meaning set forth in Section 1.2.
      -------------------

     "Securities Act" shall mean the Securities Act of 1933, as amended, and the
      --------------
rules and regulations of the Commission thereunder, or any similar United States
federal statute.

     "Selling Expenses" shall mean all underwriting discounts, selling
      ----------------
commissions and stock transfer taxes applicable to the securities registered by
Holders and any fees, expenses or other disbursements of any underwriter or
agent acting on behalf of any Holders.  Such expenses shall be borne by the
Holders or the underwriter or agent, as agreed between the Holders and the
underwriter or agent.

     "Selling Holders" shall mean each Holder who holds Registrable Securities
      ---------------
included in a registration statement under the Securities Act pursuant to this
Agreement.

     1.2. Requested Registrations.
          -----------------------

          (a)  Request for Registration.  In the event the Company shall
               ------------------------
receive from the Initiating Holders a written request that the Company effect
any registration with respect to not less than fifty percent (50%) of the then-
outstanding Registrable Securities with an anticipated aggregate offering price,
net of any underwriting discounts and commissions, in excess of Ten Million
dollars ($10,000,000) (a "Registration Notice"), the Company will:

               (i)  promptly give written notice of the proposed registration,
qualification or compliance to all other Holders pursuant to Section 6.2; and

               (ii) as soon as reasonably practicable, use its best efforts to
effect such registration (including, without limitation, appropriate
qualification under applicable Blue Sky Laws or other state securities laws and
appropriate compliance with applicable regulations issued under the Securities
Act and any other governmental requirements or regulations) as may be requested
and as would permit or facilitate the sale and distribution of all or such
portion of such Registrable Securities as are specified in such request,
together with all or such portion of the Registrable Securities of any Holder
joining in such request as are

                                      -3-
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specified in a written request received by the Company from any Holder within
fifteen (15) days after the request from the Initiating Holders. Notwithstanding
the foregoing, the Company shall not be obligated to take any action to effect
any such registration pursuant to this Section 1.2:

                    (A)  In any particular jurisdiction in which the Company
would be required to execute a general consent to service of process in
effecting such registration, qualification or compliance unless the Company
already is subject to service in such jurisdiction and except as may be required
by the Securities Act;

                    (B)  Prior to six (6) months after the effective date of the
Company's first registered public offering of its stock;

                    (C)  During the period starting with the date sixty (60)
days prior to the Company's estimated date of filing of, and ending on the date
six (6) months immediately following the effective date of, any registration
statement pertaining to securities of the Company sold by the Company (other
than a registration of securities in a Rule 145 transaction or with respect to
an employee benefit plan), provided that the Company is employing in good faith
all reasonable efforts to cause such registration statement to become effective;

                    (D)  After the Company has effected two (2) registrations
pursuant to this Section 1.2, and such registrations have been declared or
ordered effective; or

                    (E)  If the Company shall furnish to such Holders a
certificate signed by an officer of the Company stating that, in the good faith
judgment of the Board of Directors (excluding for all purposes the vote of any
member of the Board of Directors who is a representative or Affiliate of any of
the Initiating Holders), (i) it would be detrimental to the Company or its
shareholders for a registration statement to be filed in the near future, or
(ii) that a material event has occurred that has not been disclosed publicly
and, if disclosed, would have a detrimental effect on the Company or its ability
to consummate the offering under the registration requested hereunder, then the
Company's obligation to use its best efforts to register under this Section 1.2
shall be deferred for a period not to exceed ninety (90) days from the date of
receipt of written request from the Initiating Holders, provided, however, that
the Company shall not utilize this right more than once in any twelve (12) month
period.

     Subject to the foregoing clauses (A) through (E), the Company shall file a
registration statement covering the Registrable Securities so requested to be
registered as soon as practicable, after receipt of the request or requests of
the Initiating Holders, but in no event shall the Company be required to file
any such registration statement sooner than forty-five (45) days following such
request.

               (b)  Underwriting.  In the event that a registration pursuant to
                    ------------
this Section 1.2 is for a registered public offering involving an underwriting,
the Company so shall advise the Holders as part of the notice given pursuant to
Section 1.2(a)(i). In such event, the right of any Holder to registration
pursuant to Section 1.2 shall be conditioned upon such Holder's participation in
the underwriting arrangements required by this Section 1.2, and the

                                      -4-
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inclusion of such Holder's Registrable Securities in the underwriting to the
extent requested shall be limited to the extent provided herein. The Company
shall enter (together with all Holders and Other Holders proposing to distribute
their securities through such underwriting) into an underwriting agreement in
customary form with the managing underwriter selected for such underwriting by
the Company. Notwithstanding any other provision of this Section 1.2, if the
managing underwriter advises the Initiating Holders in writing that marketing
factors require a limitation of the number of shares to be underwritten, then
the Company so shall advise all Holders and Other Holders proposing to
distribute their securities through such underwriting, and the number of shares
that may be included in the registration and underwriting shall be allocated,
first, among all participating Holders in proportion, as nearly as practicable,
-----
to the respective amounts of Registrable Securities on an as-converted basis
held by such Holders at the time of filing the registration statement and,
second, among any Other Holders in proportion to the number of shares proposed
------
be included in such registration by such Other Holders (or in such other
proportion as the Company and/or such Other Holders determine). No Registrable
Securities or other securities excluded from the underwriting by reason of the
underwriter's marketing limitation shall be included in such registration. To
facilitate the allocation of shares in accordance with the above provisions, the
Company or the underwriters may round the number of shares allocated to any
Holder or Other Holder to the nearest one hundred (100) shares. If any Holder or
Other Holder desires to withdraw from the registration, it may do so only during
the period of time and on the terms agreed to by such Holder or Other Holder,
the Company and the managing underwriter. The Registrable Securities and/or
other securities so withdrawn also shall be withdrawn from registration and
shall not be transferred in a public distribution prior to one hundred eighty
(180) days after the effective date of the registration statement relating
thereto, or such other shorter period of time as the underwriters may require
pursuant to Section 1.12.

     1.3. Company Registrations.
          ---------------------

          (a)  Notice of Registration.  If at any time or from time to time the
               ----------------------
Company shall determine to register any of its securities, either for its own
account or the account of a security holder or holders, other than (i) a
registration relating solely to stock option or other employee benefit plans,
(ii) a registration relating solely to a Commission Rule 145 transaction, or
(iii) a registration on Form S-4 or Form S-8 or any form substituted therefor,
the Company will:

               (i)  promptly give to each Holder written notice thereof pursuant
to Section 6.2 hereof; and

               (ii) include in such registration (and any related qualification
under Blue Sky Laws or other compliance), and in any underwriting involved
therein, all the Registrable Securities specified in a written request or
requests received by the Company from any Holder within fifteen (15) days after
such Holder's receipt of such written notice from the Company.

          (b)  Underwriting.  If the registration of which the Company gives
               ------------
notice is for a registered public offering involving an underwriting, the
Company so shall advise the Holders as a part of the written notice given
pursuant to Section 1.3(a)(i). In such event the

                                      -5-
<PAGE>

right of any Holder to registration pursuant to this Section 1.3 shall be
conditioned upon such Holder's participation in such underwriting and the
inclusion of Registrable Securities in the underwriting to the extent provided
herein. All Holders proposing to distribute their securities through such
underwriting shall enter, together with the Company and Other Holders, into an
underwriting agreement in customary form with the managing underwriter selected
for such underwriting by the Company. Notwithstanding any other provision of
this Section 1.3, if the managing underwriter determines that marketing factors
require a limitation of the number of shares to be underwritten, the managing
underwriter may limit the Registrable Securities and other securities to be
included in such registration. The Company shall so advise all Holders and Other
Holders, and the number of shares that may be included in the registration and
underwriting shall be allocated, (1) if the registration has been initiated by
the Company (and not at the demand of Other Holders exercising contractual
"demand" registration rights similar to those set forth in Sections 1.2 and 1.4
hereof ("Other Demand Holders")), first, to the Company, and second, among the
                                  -----                      ------
participating Holders and Other Holders in proportion to the number of shares
proposed to be included in the registration by such Holders and Other Holders,
respectively, and (2) if the registration is being made at the demand of Other
Demand Holders, first, among the Other Demand Holders and, if applicable, the
                -----
Company, in such manner as the Other Demand Holders and the Company have agreed
or then agree, and second, among the participating Holders in proportion to the
                   ------
number of shares proposed to be included in such registration by such Holders.
To facilitate the allocation of shares in accordance with the above provisions,
the Company may round the number of shares allocated to any Holder or Other
Holder to the nearest one hundred (100) shares. If any Holder or Other Holder
desires to withdraw from the registration, it may only do so during the period
of time and on the terms agreed to by such Holder or Other Holder, the Company
and the managing underwriter. Any securities excluded or withdrawn from such
underwriting shall be withdrawn from such registration, and shall not be
transferred in a public distribution prior to one hundred eighty (180) days
after the effective date of the registration statement relating thereto, or such
other shorter period of time as the underwriters may require pursuant to Section
1.12.

          (c)  Right to Terminate Registration.  The Company shall have the
               -------------------------------
right to terminate or withdraw any registration initiated by it under this
Section 1.3 prior to the effectiveness of such registration whether or not any
Holder has elected to include Registrable Securities in such registration;
provided, however, if the Holders elect to use their demand registration right,
pursuant to Section 1.2 hereof, then such registration shall be governed by
Section 1.2 and it shall not be terminated, except as set forth in Section
1.2(a)(ii).

     1.4. Registrations on Form S-3.
          -------------------------

          (a)  Request for Registration.  If at any time or from time to time
               ------------------------
any Holder or Holders request that the Company file a registration statement on
Form S-3 (or any successor form to Form S-3) for a public offering of shares of
the Registrable Securities with a reasonably anticipated aggregate price to the
public of at least One Million Dollars ($1,000,000), and the Company is a
registrant entitled to use Form S-3 to register the Registrable Securities for
such an offering, the Company shall use its best efforts (i) to cause such
Registrable Securities to be registered for the offering on such form (but in no
event shall the Company be required to file any such registration statement
sooner than thirty (30) days following such request) and (ii) to cause such
Registrable Securities to be qualified in such jurisdictions as the Holder or
Holders

                                      -6-
<PAGE>

may reasonably request. The substantive provisions of Section 1.2(b) shall be
applicable to each such registration initiated under this Section 1.4 involving
an underwriting.

          (b)  Limitations.  Notwithstanding the foregoing, the Company shall
               -----------
not be obligated to take any action pursuant to this Section 1.4:

               (i)   more than once in any twelve (12)-month period (including
any registration made pursuant to Section 1.2 herein);

               (ii)  in any particular jurisdiction in which the Company would
be required to execute a general consent to service of process in effecting such
registration, qualification or compliance unless the Company is already subject
to service in such jurisdiction and except as may be required by the Securities
Act;

               (iii) if the Company, within twenty (20) days of the receipt of
the request of the Initiating Holders requesting registration under this Section
1.4, gives notice of its bona fide intention to effect the filing of a
registration statement with the Commission within ninety (90) days of receipt of
such request (other than with respect to a registration statement relating to a
Rule 145 transaction, an offering solely to employees or any other registration
which is not appropriate for the registration of Registrable Securities);

               (iv)  within a six (6) month period immediately following the
effective date of any registration statement pertaining to securities of the
Company (other than a registration of securities in a Rule 145 transaction or
with respect to a stock option or other employee benefit plan);

               (v)   if the Company shall furnish to such Initiating Holders a
certificate signed by an officer of the Company stating that in the good faith
judgment of the Board of Directors (excluding for all purposes the vote of any
member of the Board of Directors who is a representative or Affiliate of any of
the Initiating Holders) (i) it would be detrimental to the Company or its
shareholders for a registration statement to be filed in the near future, or
(ii) that a material event has occurred that has not been disclosed publicly
and, if disclosed, would have a detrimental effect on the Company or its ability
to consummate the offering under the registration requested hereunder, then the
Company's obligation to use its best efforts to file a registration statement
shall be deferred for a period not to exceed ninety (90) days from the receipt
of the request to file such registration by such Holder; provided, however, that
the Company shall not utilize this right more than once in any twelve (12)-month
period.

     1.5. Limitations on Subsequent Registration Rights.  From and after the
          ---------------------------------------------
date hereof, the Company will not enter into any agreement with any Holder,
Other Holder or prospective holder of the Company's securities which agreement
is in conflict with the provisions hereof.

     1.6. Expenses of Registration.
          ------------------------

          (a)  Registration Expenses.  The Company shall bear all Registration
               ---------------------
Expenses incurred in connection with all registrations pursuant to Sections 1.2,
1.3 and 1.4. In the event any Initiating Holders withdraw a Registration Notice,
abandon a registration statement

                                      -7-
<PAGE>

or, following an effective registration pursuant to Section 1.2 hereof, do not
sell Registrable Securities, then all Registration Expenses in respect of such
Registration Notice shall be borne, at the Initiating Holders' option, either by
the Initiating Holders or by the Company (in which case, if borne by the
Company, such withdrawn or abandoned registration shall be deemed to be an
effective registration for purposes of Section 1.2(a)(ii)(D) hereof).

          (b)  Selling Expenses.  All Selling Expenses relating to securities
               ----------------
registered on behalf of the Holders and Other Holders shall be borne by the
Holders and Other Holders pro rata on the basis of the number of shares so
registered.

     1.7. Registration and Qualification.  If and whenever the Company is
          ------------------------------
required to use its best efforts to effect the registration of any Registrable
Securities under the Securities Act pursuant to this Agreement, the Company will
as promptly as is practicable:

          (a)  prepare and file with the Commission, within the time frame set
forth in the penultimate paragraph of Section 1.2(a) hereof, and use its best
efforts to cause to become effective, a registration statement under the
Securities Act relating to the Registrable Securities to be offered on such form
as the Initiating Holders, or if not filed pursuant to Section 1.2 or Section
1.4 hereof, the Company, determines and for which the Company then qualifies;

          (b)  prepare and file with the Commission such amendments (including
post-effective amendments) and supplements to such registration statement and
the prospectus used in connection therewith as may be necessary to keep such
registration statement effective and to comply with the provisions of the
Securities Act with respect to the disposition of all Registrable Securities
until the earlier of such time as all of such Registrable Securities have been
disposed of in accordance with the intended methods of disposition set forth in
such registration statement or the expiration of ninety (90) days after such
registration statement becomes effective; provided that such ninety (90) day
period shall be extended in the case of a registration pursuant to Section 1.2
hereof for such number of days that equals the number of days elapsing from (i)
the date the written notice contemplated by Section 1.7(f) hereof is given by
the Company to (ii) the date on which the Company delivers to the Selling
Holders the supplement or amendment contemplated by Section 1.7(f) hereof;

          (c)  furnish to the Selling Holders and to any underwriter of
Registrable Securities such number of conformed copies of such registration
statement and of each such amendment and supplement thereto (in each case
including all exhibits), such number of copies of the prospectus included in
such registration statement (including each preliminary prospectus and any
summary prospectus), in conformity with the requirements of the Securities Act,
such documents incorporated by reference in such registration statement or
prospectus, and such other documents, as the Selling Holders or such underwriter
reasonably may request;

          (d)  make every reasonable effort to obtain the withdrawal of any
order suspending the effectiveness of such registration statement at the
earliest possible moment;

          (e)  if requested by an Initiating Holder, (i) furnish to each Selling
Holder an opinion of counsel for the Company addressed to each Selling Holder
and dated the date of the closing under the underwriting agreement (if any) (or
if such offering is not

                                      -8-
<PAGE>

underwritten, dated the effective date of the registration statement), and (ii)
use its best efforts to furnish to each Selling Holder a "comfort" or "special
procedures" lever addressed to each Selling Holder and signed by the independent
public accountants who have audited the Company's financial statements included
in such registration statement, in each such case covering substantially the
same matters with respect to such registration statement (and the prospectus
included therein) as are customarily covered in opinions of issuer's counsel and
in accountants' letters delivered to underwriters in underwritten public
offerings of securities and such other matters as the Selling Holders reasonably
may request and, in the case of such accountants' letter, with respect to events
subsequent to the date of such financial statements;

          (f)  notify the Selling Holders in writing (i) at any time when a
prospectus relating to a registration hereunder is required to be delivered
under the Securities Act of the happening of any event as a result of which the
prospectus included in such registration statement, as then in effect, includes
an untrue statement of a material fact or omits to state any material fact
required to be stated therein or necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading, and (ii)
of any request by the Commission or any other regulatory body or other body
having jurisdiction for any amendment of or supplement to any registration
statement or other document relating to such offering, and in either such case
(i) or (ii) at the request of a Selling Holder prepare and furnish to such
Selling Holders a reasonable number of copies of a supplement to or an amendment
of such prospectus as may be necessary so that, as thereafter delivered to the
purchasers of such Registrable Securities, such prospectus shall not include an
untrue statement of a material fact or omit to state a material fact required to
be stated therein or necessary to make the statements therein, in light of the
circumstances under which they are made, not misleading;

          (g)  use its best efforts to list all such Registrable Securities
covered by such registration statement on each securities exchange and inter-
dealer quotation system on which a class of common equity securities of the
Company is then listed, and to pay all fees and expenses in connection
therewith; and

          (h)  upon the transfer of shares by a Selling Holder in connection
with a registration hereunder, furnish unlegended certificates representing
ownership of the Registrable Securities being sought in such denominations as
shall be requested by the Selling Holders or the underwriters.

     1.8. Indemnification.
          ---------------

          (a)  By Company.  To the extent permitted by law, the Company will
               ----------
indemnify and hold harmless each Holder, each of its officers and directors and
partners, and each person controlling such Holder within the meaning of Section
15 of the Securities Act, with respect to which registration has been effected
pursuant to this Agreement against all expenses, claims, losses, damages or
liabilities (or actions in respect thereof), including any of the foregoing
incurred in settlement of any litigation, commenced or threatened, arising out
of or based on any untrue statement (or alleged untrue statement) of a material
fact contained in any registration statement or prospectus included within such
registration statement or any amendment or supplement thereto, incident to any
such registration, or based on any omission (or alleged omission) to state
therein a material fact required to be stated therein or necessary to

                                      -9-
<PAGE>

make the statements therein, in light of the circumstances in which they were
made, not misleading, or any violation by the Company of the Securities Act or
any rule or regulation promulgated under the Securities Act applicable to the
Company in connection with any such registration. The Company will reimburse
each Holder, each of its officers, directors and partners, and each person
controlling such Holder, for any legal and any other expenses reasonably
incurred in connection with investigating, preparing or defending any such
claim, loss, damage, liability or action, provided that the Company will not be
liable in any such case to the extent that any such claim, loss, damage,
liability or expense arises out of or is based on any untrue statement or
omission or alleged untrue statement or omission, made in reliance upon and in
conformity with written information furnished to the Company by such Holder or
controlling person specifically for use therein. If the Holders are represented
by counsel other than counsel for the Company, the Company will not be obligated
under this Section 1.8(a) to reimburse legal fees and expenses of more than one
separate counsel for the Holders. The Company will also indemnify underwriters
participating in the distribution, and each person who controls such
underwriters within the meaning of Section 16 of the Securities Act, to the same
extent customarily requested by such persons in similar circumstances.

          (b)  By Holders.  To the extent permitted by law, each Selling Holder
               ----------
will indemnify and hold harmless the Company, each of its directors and
officers, each underwriter, if any, of the Company's securities covered by such
a registration statement, each person who controls the Company or such
underwriter within the meaning of Section 15 of the Securities Act, and each
other Selling Holder, against all claims, losses, damages and liabilities (or
actions in respect thereof) arising out of or based on any untrue statement (or
alleged untrue statement) of a material fact contained in any such registration
statement, prospectus, offering circular or other document, or any omission (or
alleged omission) to state therein a material fact required to be stated therein
or necessary to make the statements therein not misleading, and will reimburse
the Company, such Selling Holders, such directors, officers, underwriters or
control persons for any legal or any other expenses reasonably incurred in
connection with investigating or defending any such claim, loss, damage,
liability or action, in each case to the extent, but only to the extent, that
such untrue statement (or alleged untrue statement) or omission (or alleged
omission) is made in such registration statement, prospectus, offering circular
or other document in reliance upon and in conformity with written information
furnished to the Company by an instrument duly executed by such Selling Holder
and stated to be specifically for use therein. Notwithstanding the foregoing,
the liability of each Selling Holder under this subsection (b) shall be limited
in an amount equal to the net proceeds from the shares sold by such Selling
Holder, unless such liability arises out of or is based on willful misconduct by
such Selling Holder. The Company also shall be entitled to receive indemnities
from underwriters participating in the distribution to the same extent as
customarily furnished by such persons in similar circumstances.

          (c)  Procedure for Indemnification.  Each party indemnified under
               -----------------------------
paragraph (a) or (b) of this Section 1.8 (the "Indemnified Party") promptly (but
in any event no more than fifteen (15) days) after receipt of notice of any
claim or the commencement of any action against such Indemnified Party in
respect of which indemnity may be sought, shall notify the party required to
provide indemnification (the "Indemnifying Party") in writing of the claim or
the commencement thereof, providing reasonable detail of such claim or action
together with copies of all correspondence received by the Indemnified Party in
connection therewith;

                                      -10-
<PAGE>

provided that the failure of the Indemnified Party to notify the Indemnifying
Party within the time period required shall not relieve the Indemnifying Party
from any liability which it may have to an Indemnified Party on account of the
indemnity agreement contained in paragraph (a) or (b) of this Section 1.8,
unless the Indemnifying Party was prejudiced materially by such failure, and in
no event shall relieve the Indemnifying Party from any other liability which it
may have to such Indemnified Party. If any such claim or action shall be brought
against an Indemnified Party, it shall notify the Indemnifying Party thereof in
writing within the time period required above and the Indemnifying Party shall
be entitled to participate therein, and, to the extent that it wishes (if the
Indemnified Party is a Selling Holder, jointly with any other similarly notified
Indemnifying Party), to assume the defense thereof with counsel reasonably
satisfactory to the Indemnified Party. After notice from the Indemnifying Party
to the Indemnified Party of its election to assume the defense of such claim or
action, the Indemnifying Party shall not be liable (except to the extent the
proviso to this sentence is applicable, in which event it will be so liable) to
the Indemnified Party under this Section 1.8 for any legal or other expenses
subsequently incurred by the Indemnified Party in connection with the defense
thereof; provided that each Indemnified Party shall have the right to employ
separate counsel to represent it and assume its defense (in which case, the
Indemnifying Party shall not represent it) if (i) upon the written advice of
counsel that the representation of both parties by the same counsel would cause
an actual and material conflict of interest between them, or (ii) in the event
the Indemnifying Party has not assumed the defense thereof within fifteen (15)
business days of receipt of written notice of such claim or commencement of
action, and in which case the fees and expenses of one such separate counsel for
all Indemnified Parties reasonably acceptable to the Indemnifying Party shall be
paid by the Indemnifying Party. If the Indemnified Parties employ such separate
counsel they will not enter into any settlement agreement without the prior
written consent of the Indemnifying Party, which consent shall not be
unreasonably withheld. If the Indemnifying Party so assumes the defense thereof,
it may not agree to any settlement of any such claim or action as the result of
which any remedy or relief (other than monetary damages for which the
Indemnifying Party shall be responsible hereunder) shall be applied to or
against the Indemnified Party, without the prior written consent of the
Indemnified Party, which consent shall not be unreasonably withheld. In any
action hereunder as to which the Indemnifying Party has assumed the defense
thereof with counsel reasonably satisfactory to the Indemnified Party, the
Indemnified Party shall continue to be entitled to participate in the defense
thereof, with counsel of its own choice, and, except as set forth above, at its
sole expense, and the Indemnifying Party shall not be obligated hereunder to
reimburse the Indemnified Party for the fees and costs thereof.

          (d)  Contribution.  If the indemnification provided for in this
               ------------
Section 1.8 shall for any reason be held to be unenforceable by a court of
competent jurisdiction although applicable in accordance with its terms to an
Indemnified Party in respect of any loss, claim, damage or liability, or any
action in respect thereof, in lieu of indemnifying such Indemnified Party, each
Indemnifying Party shall contribute to the amount paid or payable by such
Indemnified Party as a result of such loss, claim, damage or liability, or
action in respect thereof, in such proportion as shall be appropriate to reflect
the relative fault of the Indemnifying Party on the one hand and the Indemnified
Party on the other with respect to the statements or omissions which resulted in
such loss, claim, damage or liability, or action in respect thereof, as well as
any other relevant equitable considerations. The relative fault shall be
determined by reference to whether the untrue or alleged untrue statement of a
material fact or omission or

                                      -11-
<PAGE>

alleged omission to state a material fact relates to (i) information supplied
specifically for use in any registration statement, prospectus, offering
circular or other similar document by the Indemnifying Party on the one hand or
the Indemnified Party on the other, (ii) the intent of the parties and their
relative knowledge, (iii) access to information and (iv) opportunity to correct
or prevent such statement or omission, but not by reference to any Indemnified
Party's stock ownership in the Company. In no event, however, shall a Holder of
Registrable Securities be required to contribute in excess of the amount of the
net proceeds received by such Holder in connection with the sale of Registrable
Securities in the offering which is the subject of such loss, claim, damage or
liability. The amount paid or payable by an Indemnified Party as a result of the
loss, claim, damage or liability, or action in respect thereof, referred to
above in this paragraph shall be deemed to include, for purposes of this
paragraph, any legal or other expenses reasonably incurred by such Indemnified
Party in connection with investigating or defending any such action or claim. No
person guilty of fraudulent misrepresentation (within the meaning of Section
12(f) of the Securities Act) shall be entitled to contribution from any person
who was not guilty of such fraudulent misrepresentation. For purposes of this
Section 1.8, each officer of the Company who signed a registration statement
relating to the offering to which any losses, claims, damages or liabilities or
actions relate, and each person, if any, who controls the Company within the
meaning of Section 15 of the Securities Act, shall have the same rights to
contribution as the Company.

          (e)  Survival.  The obligations of the Company and Holders under this
               --------
Section 1.8 shall survive the completion of any offering of Registrable
Securities in a registration statement under this Section 1, and otherwise.

     1.9.  Information by Holder.  Holders including any Registrable Securities
           ---------------------
in any registration promptly shall furnish to the Company in writing such
information regarding such Holders as shall be necessary to enable the Company
to comply with the provisions hereof in connection with any registration,
qualification or compliance referred to in this Agreement.

     1.10. Rule 144 Reporting.  With a view to making available the benefits of
           ------------------
certain rules and regulations of the Commission which may at any time permit the
sale of the Restricted Securities to the public without registration, after such
time as a public market exists for the Common Stock of the Company, the Company
agrees to use its best efforts to:

           (a)  Make and keep public information available, as those terms are
understood and defined in Rule 144 under the Securities Act, at all times after
the effective date that the Company becomes subject to the reporting
requirements of the Securities Act or the Securities Exchange Act of 1934, as
amended (the "Exchange Act");

           (b)  File with the Commission in a timely manner all reports and
other documents required of the Company under the Securities Act and the
Exchange Act (at any time after it has become subject to such reporting
requirements); and

           (c)  Furnish to any Holder forthwith upon prior written request (i) a
written statement by the Company as to its compliance with the reporting
requirements of Rule 144 (at any time ninety (90) days after the effective date
of the first registration statement filed by the Company for an offering of its
securities to the general public), and of the Securities Act

                                      -12-
<PAGE>

and the Exchange Act (at any time after it has become subject to such reporting
requirements), (ii) a copy of the most recent annual or quarterly report of the
Company, and (iii) such other reports and documents of the Company and other
information in the possession of or reasonably obtainable by the Company as such
Holder may reasonably request in availing itself of any rule or regulation of
the Commission allowing such Holder to sell any such securities without
registration.

     1.11. Transfer of Registration Rights.  The rights to cause the Company to
           -------------------------------
register securities granted Holders under Sections 1.2, 1.3 and 1.4 may be
assigned in connection with any transfer or assignment by a Holder of
Registrable Securities provided that:  (a) such transfer may otherwise be
effected in accordance with applicable securities laws; (b) such transfer is
effected in compliance with the restrictions on transfer contained in this
Agreement and in any other agreement between the Company and the Holder; and (c)
such assignee or transferee agrees in writing to be bound by the terms of this
Agreement and assumes all of the obligations of the transferring Holder
hereunder.  No transfer or assignment will divest a Holder or any subsequent
owner of such rights and powers unless all Registrable Securities are
transferred or assigned.

     1.12. Market Stand-Off Agreement.  Each Holder hereby agrees that, for so
           --------------------------
long as such Holder holds at least one percent (1%) of the then outstanding
voting securities of the Company, during the period of duration specified by the
Company or, if applicable, an underwriter of Common Stock or other securities of
the Company, following the date of the first sale to the public pursuant to a
registration statement of the Company filed under the Act ("Market Stand-Off
Period"), it shall not, to the extent requested by the Company and such
underwriter, directly or indirectly sell, offer to sell, contract to sell
(including, without limitation, any short sale), grant any option to purchase or
otherwise transfer or dispose of (other than to donees who consent in writing to
be similarly bound) any securities of the Company held by it at any time during
such period, except Common Stock included in such registration; provided,
however, that:

           (a)  such Market Stand-Off Period shall be applicable only to the
first two (2) such registration statements of the Company which cover Common
Stock (or other securities) to be sold on its behalf to the public in an
underwritten offering;

           (b)  all officers and directors of the Company and all other persons
with registration rights (whether or not pursuant to this Agreement) enter into
similar agreements; and

           (c)  such Market Stand-Off Period shall not (i) exceed one hundred
eighty (180) days in connection with the first registration statement of the
Company, which covers Common Stock or other securities to be sold on its behalf
to the public and (ii) exceed ninety (90) days with respect to any subsequent
registration statement.

     Notwithstanding the foregoing, the obligations described in this Section
1.12 shall not apply to a registration relating solely to employee benefit plans
on Form S-8 or similar forms which may be promulgated in the future, or a
registration relating solely to a Commission Rule

                                      -13-
<PAGE>

145 transaction on Form S-4, Form S-14 or Form S-15 or similar forms which may
be promulgated in the future.

          This Section 1.12 shall be binding on all transferees or assignees of
Registrable Securities, whether or not such persons are entitled to registration
rights pursuant to Section 1.11, and if requested by the Company, any such
transferee or assignee shall confirm in writing its agreement to be bound by the
provisions hereof.

          1.13. Termination of Registration Rights.  Except for the provisions
                ----------------------------------
of Section 1.12, the registration rights granted in Sections 1.2, 1.3 and 1.4
shall terminate, with respect to each Holder, the sooner of such time as (a) all
Registrable Securities held by such Holder can be sold pursuant to Rule 144(k)
without compliance with the registration requirements of the Securities Act, or
(b) all Registrable Securities held by such Holder can be sold pursuant to Rule
144 in a single transaction without compliance with the registration
requirements of the Securities Act. The respective indemnities, representations
and warranties of the Purchasers and the Company shall survive such termination.

     2.   Information Rights.
          ------------------

          2.1. Financial Information.  The Company will provide to each
               ---------------------
Purchaser the following information:

               (a)  As soon as reasonably practicable after the end of each
fiscal year, and in any event within ninety (90) days thereafter, a consolidated
balance sheet of the Company and its subsidiaries, if any, as of the end of such
fiscal year, and consolidated statements of income, stockholders' equity and
cash flows of the Company and its subsidiaries, if any, for such year, prepared
in accordance with generally accepted accounting principles ("GAAP") and setting
forth in each case in comparative form the figures for the previous fiscal year,
all in reasonable detail and all certified by a nationally recognized public
accounting firm.

               (b)  As soon as reasonably practicable after the end of each
fiscal quarter and in any event within thirty (30) days thereafter, a
consolidated balance sheet of the Company and its subsidiaries, if any, as of
the end of each such quarter, consolidated statements of income, consolidated
statements of changes in financial condition, and a consolidated statement of
cash flow of the Company and its subsidiaries for such quarter and for the
current fiscal year to date, and setting forth in each case in comparative form
the figures for corresponding quarters in the previous fiscal year, and setting
forth in comparative form the budgeted figures for such quarter and for the
current fiscal year then reported, prepared in accordance with GAAP (other than
for accompanying notes), subject to changes resulting from year-end audit
adjustments, all in reasonable detail and signed by the principal financial or
accounting of ricer of the Company.

               (c)  An annual operating plan and budget for the next fiscal year
of the Company containing revenue projections, profit and loss projections, cash
flow projections, and capital expenditures, all on a quarterly basis, as soon as
it is available but in any event within forty-five (45) days prior to the end of
the current fiscal year.

                                      -14-
<PAGE>

               (d)  The rights granted pursuant to this Section 2.1 may not be
assigned or otherwise conveyed by any Purchaser or by any subsequent transferee
of any such rights without the prior written consent of the Company.

          2.2. Additional Information.  The Company will allow each Purchaser
               ----------------------
holding at least five percent (5%) of the Company's outstanding securities to
visit and inspect any of the properties of the Company (at reasonable times and
upon reasonable advance notice but in any event no more than two (2) times per
calendar year) and will deliver or provide to each Purchaser with reasonable
promptness such information and data, including access to books, records,
officers and accountants, with respect to the Company and its subsidiaries as
any such Purchaser may from time to time reasonably request; provided, however,
                                                             --------  -------
that (a) the Company shall not be obligated to provide any information that it
considers in good faith to be a trade secret or to contain confidential or
classified information, (b) the provisions of this Section 2.2 shall not be
applicable to any Purchasers during such time as any Purchaser has a
representative who is a member of the Board of Directors, and (c) with respect
to any such information and data not contained in regularly prepared reports of
the Company, the Purchaser requesting the same shall reimburse the Company for
any reasonable costs incurred by the Company in providing such information, data
or access.

          2.3. Confidential Treatment of Information.
               -------------------------------------

               (a)  Each Purchaser agrees to maintain the confidentiality of all
nonpublic information obtained by it from the Company which is either non-
public, confidential or proprietary in nature, including, but not limited to,
any and all information required to be provided by the Company to the Purchasers
hereunder, under the First Series A Purchase Agreement, the Second Series A
Purchase Agreement or the Series B Purchase Agreement, and not to use or
disclose any such information for any reason, in whole or in part, except as set
forth below or in respect of evaluating its purchase of securities from the
Company; provided, that (a) each Purchaser may disclose such information, to the
extent required by law, in connection with the sale or transfer of any Preferred
Stock or the Common Stock issued upon conversion thereof if such Purchaser's
transferee agrees in writing to be bound by the provisions hereof, and (b) each
Purchaser may disclose such information (i) at the written request of any
applicable governmental regulatory authority, (ii) pursuant to subpoena or other
court process, (iii) when required to do so in accordance with the provisions of
any applicable law as evidenced by a written opinion of counsel reasonably
satisfactory to the Company, and (iv) to the Purchaser's officers, agents,
representatives, independent auditors and other professional advisors on a need-
to-know basis; provided, such persons acknowledge in writing that they are bound
by the Purchaser's confidentiality obligations hereunder; provided, however,
that with respect to subsections (b)(i) and (b)(ii) above, the Company shall be
provided prompt notice of such request, subpoena or process and shall be given
reasonable opportunity to seek a protective order or other appropriate remedy.

               (b)  It is agreed that money damages would not be a sufficient
remedy for any breach of Section 2.3(a) by any Purchaser or its representatives
and that the Company shall be entitled to injunctive relief, specific
performance and/or other appropriate equitable remedies for such breach. Such
remedies shall not be deemed to be the exclusive remedy for breach of Section
2.3(a) but shall be in addition to all remedies available under law or in
equity.

                                      -15-
<PAGE>

     3.   Right of First Refusal.
          ----------------------

          3.1. General.  Except for (i) securities issued pursuant to
               -------
conversion rights applicable to the Preferred Stock, (ii) securities issued
pursuant to conversion rights applicable to the Class B Common Stock (iii)
securities issued in a public offering pursuant to an effective registration
statement under the Securities Act, (iv) securities issued pursuant to the
Company's acquisition of another corporation, or all or a portion of its assets,
by merger, purchase of assets or other corporate reorganization, (v) securities
issued in connection with any stock split, recapitalization or stock dividend of
the Company, (vi) securities issued after the date hereof to employees,
officers, or directors of, or contractors, consultants or advisors to, the
Company pursuant to stock purchase or stock option plans, warrants, stock
bonuses or awards, contracts or other arrangements that are approved by the
Board of Directors, (vii) warrants or other securities issued to financial
institutions or lenders in connection with lease lines or loans approved by the
Board of Directors, (viii) securities issued to technology providers or in
connection with joint venture, partnering or development agreements approved by
the Board of Directors (including, without limitation, any warrants issued to
International Business Machines Corporation ("IBM") pursuant to a proposed
technological access agreement between the Company and IBM), (ix) securities
issued pursuant to the Series B Purchase Agreement, (x) Warrants issued pursuant
to the First Series A Purchase Agreement or the Second Series A Purchase
Agreement (as defined therein) or (xi) securities issued upon exercise of the
Warrants (collectively, the securities described in items (i) through (xi) above
are referred to herein as the "Excluded Securities"), the Company will not
authorize or issue any shares of stock of the Company of any class and will not
authorize, issue or grant any options, warrants, conversion rights or other
rights to purchase or acquire any shares of stock of the Company of any class
without offering the Purchasers the right of first refusal described below.

          3.2. Right of First Refusal.  Each Purchaser shall have a right of
               ----------------------
first refusal to purchase an amount of securities of the Company of any class or
kind which the Company proposes to sell (other than the Excluded Securities)
sufficient to maintain such Purchaser's proportionate beneficial ownership
interest in the Company. If the Company wishes to make any such sale of its
securities, it shall give the Purchasers written notice of the proposed sale.
The notice shall set forth (a) the Company's bona fide intention to offer such
shares and (b) the material terms and conditions of the proposed sale (including
the number of shares to be offered and the price, if any, for which the Company
proposes to offer such shares), and shall constitute an offer to sell such
securities to the Purchaser on such terms and conditions. A Purchaser may accept
such offer by delivering a written notice of acceptance to the Company within
ten (10) days after such Purchaser has received notice of the proposed sale in
accordance with Section 6.2 hereof. Any Purchaser exercising its right of first
refusal shall be entitled to participate in the purchase of such securities on a
pro rata basis to the extent necessary to maintain such Purchaser's
proportionate beneficial ownership interest in the Company (for purposes of
determining the pro rata interest of the Purchaser, any Purchaser or Other
Holder shall be treated as owning that number of shares of Common Stock into
which any outstanding convertible securities (or convertible securities for
which any outstanding options or warrants may be exercised) may be converted and
for which any outstanding options or warrants may be exercised). If the Company
does not enter into an agreement for the sale of such shares within ninety (90)
days after the receipt of the Purchaser's written notice of acceptance, the
right provided hereunder shall be deemed to be revived and all future shares of
stock of the Company

                                      -16-
<PAGE>

of any class shall not be offered unless first re-offered to the Purchasers in
accordance with this Section 3. A Purchaser shall be entitled to apportion the
right of first refusal hereby granted among itself and its partners and
Affiliates in such proportions it deems appropriate.

          3.3. Issuances by Subsidiaries.  If a subsidiary of the Company
               -------------------------
issues any of its securities to any person other than the Company or a wholly-
owned subsidiary of the Company, such issuances shall be subject to the same
right of first refusal principles as set forth in this Section 3.

     4.   Vesting of Employee Stock.  The Company shall not grant, after the
          -------------------------
date hereof, without the approval of the Board of Directors (including
specifically the approving vote of G. Bradford Jones as long as he is a member
of the Board of Directors), any stock option, stock award or other stock-based
compensation arrangement to any employee, director or consultant of the Company
under the Company's 1999 Stock Option Plan unless the terms thereof subject such
option or shares to vesting over a four (4)-year period, vesting monthly or at
such greater intervals as the Board of Directors shall determine; provided,
                                                                  --------
however, that (a) vesting may accelerate fully no fewer than six (6)  months
-------
following a change in control, or immediately following a change in control if
the employee is terminated without cause, and (b) vesting may accelerate fully
upon a change in control if the acquiring corporation does not assume the
option, award or arrangement or tender an economically equivalent substitute
option, award or arrangement.

     5.   Termination of Certain Provisions.  The rights set forth in Sections
          ---------------------------------
2.1 and 2.2, and the provisions of Sections 3 and Section 4, all shall terminate
and be of no further force or effect upon the date the Company becomes subject
to the reporting requirements of Section 13 or 1 S(d) of the Securities Exchange
Act of 1934, as amended.

     6.   Miscellaneous.
          -------------

          6.1. Waivers and Amendments.  With the written consent of the Company
               ----------------------
and the Purchasers holding more than fifty percent (50%) of the Registrable
Securities, the obligations of the Company and the rights of the Purchasers
under this Agreement may be waived (either generally or in a particular
instance, either retroactively or prospectively and either for a specified
period of time or indefinitely), and with the same consent, the Company, when
authorized by resolution of the Board of Directors, may amend this Agreement or
enter into a supplementary agreement for the purpose of adding any provisions to
this Agreement; provided, however, that no such waiver or supplemental agreement
shall reduce the above percentage of Registrable Securities, the holders of
which are required to consent to any waiver or supplemental agreement, without
the consent of the record or beneficial holders of all of the Registrable
Securities. Neither this Agreement nor any provisions hereof may be changed,
waived, discharged or terminated orally, but only by a signed statement in
writing. Any amendment, waiver or supplementary agreement effected in accordance
with this paragraph shall be binding upon each Purchaser, each future holder of
any Registrable Securities and the Company.

          6.2. Notices.  All notices and other communications required or
               -------
permitted hereunder shall be in writing (or in the form of a telex or telecopy
(confirmed in writing) to be

                                      -17-
<PAGE>

given only during the recipient's normal business hours unless arrangements have
otherwise been made to receive such notice by telex or telecopy outside of
normal business hours) and shall be mailed by registered or certified mail,
postage prepaid, or otherwise delivered by hand, messenger, or telex or telecopy
(as provided above) addressed (a) if to a Purchaser, at the address for such
Purchaser set forth on the signature pages hereto or at such other address as
such Purchaser shall have furnished to the Company in writing, or (b) if to any
Other Holder of Registrable Securities, at such address as such holder shall
have furnished the Company in writing or, until any such holder so furnishes an
address to the Company, then to and at the address of the last holder of such
Registrable Securities who has so furnished an address to the Company, or (c) if
to the Company, one copy should be sent to its principal executive officer and
addressed to the attention of the Corporate Secretary, or at such other address
as the Company shall have furnished in writing to the Purchasers.

          6.3. Descriptive Headings.  The descriptive headings herein have been
               --------------------
inserted for convenience only and shall not be deemed to limit or otherwise
affect the construction of any provisions hereof.

          6.4. Governing Law.  THIS AGREEMENT SHALL BE GOVERNED BY AND
               -------------
INTERPRETED UNDER THE LAWS OF THE STATE OF CALIFORNIA AS APPLIED TO AGREEMENTS
AMONG CALIFORNIA RESIDENTS, MADE AND TO BE PERFORMED ENTIRELY WITHIN THE STATE
OF CALIFORNIA.

          6.5. Counterparts.  This Agreement may be executed in one or more
               ------------
counterparts, each of which shall for all purposes be deemed to be an original
and all of which shall constitute the same instrument, but only one of which
need be produced.

          6.6. Facsimile Signatures.  Any signature page delivered by a fax
               --------------------
machine or telecopy machine shall be binding to the same extent as an original
signature page, with regard to any agreement subject to the terms hereof or any
amendment thereto. Any party who delivers such a signature page agrees to later
deliver an original counterpart to any party which requires it.

          6.7. Expenses.  If any action at law or in equity is necessary to
               --------
enforce or interpret the terms of this Agreement, the prevailing party shall be
entitled to reasonable attorney's fees, costs and necessary disbursements in
addition to any other relief to which such party may be entitled.

          6.8. Successors and Assigns.  Except as otherwise expressly provided
               ----------------------
in this Agreement, this Agreement shall benefit and bind the successors,
assigns, heirs, executors and administrators of the parties to this Agreement.

          6.9. Entire Agreement; Supercedence.  This Agreement constitutes the
               ------------------------------
full and entire understanding and agreement between the parties with regard to
the subject matter of this Agreement. This Agreement supersedes in its entirety
the First Series A Investor Rights Agreement and the Second Series A Investor
Rights Agreement; and the parties acknowledge that the foregoing agreements
shall be of no further force or effect.

                                      -18-
<PAGE>

          6.10. Separability; Severability.  Unless expressly provided in this
                --------------------------
Agreement, the rights of each Purchaser under this Agreement are several rights,
not rights jointly held with any other Purchasers. Any invalidity, illegality or
limitation on the enforceability of this Agreement with respect to any Purchaser
shall not affect the validity, legality or enforceability of this Agreement with
respect to the other Purchasers. If any provision of this Agreement is
judicially determined to be invalid, illegal or unenforceable, the validity,
legality and enforceability of the remaining provisions shall not be affected or
impaired.

          6.11. Stock Splits.  All references to numbers of shares in this
                ------------
Agreement shall be appropriately adjusted to reflect any stock dividend, split,
combination or other recapitalization of shares by the Company occurring after
the date of this Agreement.

          6.12. Authorization to Add Purchasers to Agreement.  The Board of
                --------------------------------------------
Directors shall have the absolute right to amend this Agreement further to add
individuals or entities as Purchasers, and to add such Purchaser's names to the
signature pages attached hereto upon such Purchaser's executing a counterpart
signature page of this Agreement. The Company shall notify each Purchaser of the
addition of new Purchasers pursuant to Section 6.2 hereof.

          6.13. Amendment of Series A Investor Rights Agreements; Consent to
                ------------------------------------------------------------
Series B Financing.  The undersigned First Series A Purchasers and Second
------------------
Series A Purchasers, constituting the holders of a majority of the Registrable
Securities under the Series A Investor Rights Agreements, hereby agree to amend
and restate the Series A Investor Rights Agreements in accordance with Section
6.1 of the Series A Investor Rights Agreements and hereby consent to the
issuance of the Series B Preferred Stock pursuant to the Series B Agreement and
the Company's Amended and Restated Certificate of Designations and the grant of
registration rights to the Series B Investors under this Agreement.

                                     * * *

                                      -19-
<PAGE>

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the date
first above written.

COMPANY:                           MULTILINK TECHNOLOGY CORPORATION
                                   A California corporation

                                   By:  /s/ Richard N. Nottenburg
                                      ---------------------------------------
                                      Richard N. Nottenburg
                                      President and CEO

FIRST SERIES A PURCHASERS:         BRENTWOOD ASSOCIATES IX, L.P.

                                   By:  Brentwood IX Ventures, LLC
                                        Its General Partner

                                        By: /s/ G. Bradford Jones
                                           ----------------------------------
                                            G. Bradford Jones
                                            Managing Member
                                            11150 Santa Monica Boulevard
                                            Suite 1200
                                            Los Angeles, California 90025

                                   BRENTWOOD AFFILIATES FUND III, L.P.

                                   By:  Brentwood IX Ventures, LLC
                                        Its General Partner

                                        By: /s/ G. Bradford Jones
                                           ----------------------------------
                                             G. Bradford Jones
                                             Managing Member
                                             11150 Santa Monica Boulevard
                                             Suite 1200
                                             Los Angeles, California 90025

SECOND SERIES A PURCHASERS:        GRAZIADIO FAMILY TRUST u/t/d 11/13/75

                                   By: /s/ Phillip M. Bardack
                                       ----------------------------------
                                       Phillip M. Bardack, Trustee
                                       16633 Ventura Blvd., Suite 510
                                       Encino, California 91436

                                      -20-
<PAGE>

                                   ROBERT W. CONN TRUST u/t/d 2/25/99

                                   By: /s/ Robert W. Conn
                                      -------------------------------------
                                       Robert W. Conn, Trustee
                                       2655 Mira Montana Place
                                       Del Mar, California 92014

                                   /s/ Donald Willfong
                                   ----------------------------------------
                                   Donald Willfong
                                   2711 Bellavista
                                   Santa Barbara, California 93108

                                   /s/ Mark J. Kelson
                                   ----------------------------------------
                                   Mark J. Kelson
                                   10365 Tennessee Avenue
                                   Los Angeles, California 90064

SERIES B PURCHASERS:               MERITECH CAPITAL PARTNERS L.P.

                                   By:  Meritech Capital Associates L.L.C.
                                        its General Partner

                                   By:  Meritech Management Associates L.L.C.
                                        a managing member

                                   By:  /s/ Michael B. Gordon
                                      -----------------------------------------
                                        Michael B. Gordon, a managing member
                                        90 Middlefield Road
                                        Suite 201
                                        Menlo Park, California 94025

                                      -21-
<PAGE>

                                   MERITECH CAPITAL AFFILIATES L.P.

                                   By:  Meritech Capital Associates L.L.C.
                                        its General Partner

                                   By:  Meritech Management Associates L.L.C.
                                        a managing member

                                   By: /s/ Michael B. Gordon
                                      -----------------------------------------
                                       Michael B. Gordon, a managing member
                                       90 Middlefield Road
                                       Suite 201
                                       Menlo Park, California 94025

                                   REDPOINT VENTURES I, L.P.

                                   By:  Redpoint Ventures I, LLC
                                        its General Partner

                                   By: /s/ G. Bradford Jones
                                      -----------------------------------------
                                       G. Bradford Jones, Managing Director
                                       3000 Sand Hill Road
                                       Building 2, Suite 290
                                       Menlo Park, CA 94025

                                   REDPOINT TECHNOLOGY PARTNERS Q-1, L.P

                                   By:  Redpoint Ventures I, LLC
                                        its General Partner

                                   By: /s/ G. Bradford Jones
                                      -----------------------------------------
                                       G. Bradford Jones, Managing Director
                                       3000 Sand Hill Road
                                       Building 2, Suite 290
                                       Menlo Park, CA 94025

                                      -22-
<PAGE>

                                   REDPOINT TECHNOLOGY PARTNERS, A-1, L.P.

                                   By:  Redpoint Ventures I, LLC
                                        its General Partner

                                   By:  /s/ G. Bradford Jones
                                        ---------------------------------------
                                        G. Bradford Jones, Managing Director
                                        3000 Sand Hill Road
                                        Building 2, Suite 290
                                        Menlo Park, CA 94025

                                   REDPOINT ASSOCIATES I, LLC.

                                   By:  Redpoint Ventures I, LLC
                                        its General Partner

                                   By:  /s/ G. Bradford Jones
                                        ---------------------------------------
                                        G. Bradford Jones, Managing Director
                                        3000 Sand Hill Road
                                        Building 2, Suite 290
                                        Menlo Park, CA 94025

                                      -23-
<PAGE>

          FIRST AMENDMENT TO AMENDED AND RESTATED INVESTORS' RIGHTS
                                   AGREEMENT

     Reference is hereby made to that certain Amended and Restated Investors'
Rights Agreement dated March 31, 2000 (the "Agreement") by and among Multilink
Technology Corporation, a California corporation, and the parties named therein.

     NOW, THEREFORE, BE IT RESOLVED, that pursuant to Section 6.12 of the
Agreement, the Agreement is hereby amended to add the parties listed below as
signatories thereto, and such parties shall be considered Purchasers (as defined
in the Agreement) for all purposes thereunder. The Agreement shall remain in
full force and effect, as amended hereby.

     IN WITNESS WHEREOF, the undersigned has executed this First Amendment to
the Amended and Restated Investors' Rights Agreement this 7th day of April,
2000.

                                   PURCHASERS:

                                   TRW INC.,
                                   an Ohio corporation

                                   By: /s/ Wesley G. Bush
                                       ----------------------------
                                        Wesley G. Bush
                                        Vice President

                                   TAILWIND CAPITAL PARTNERS 2000, L.P.
                                   a Delaware limited partnership

                                   By: Thomas Weisel Capital Partners LLC
                                        General Partner

                                   By: /s/ David A. Baylor
                                       ----------------------------
                                        David A. Baylor
                                        General Counsel

ACKNOWLEDGED AND APPROVED BY:

MULTILINK TECHNOLOGY CORPORATION,
a California corporation

By: /s/ Richard N. Nottenburg
    -----------------------------
        Richard N. Nottenburg
        President and CEO
<PAGE>

          SECOND AMENDMENT TO AMENDED AND RESTATED INVESTORS' RIGHTS
                                   AGREEMENT

     Reference is hereby made to that certain Amended and Restated Investors'
Rights Agreement dated March 31, 2000 (the "Agreement"), as amended on April 7,
2000 by and among Multilink Technology Corporation, a California corporation,
and the parties named therein.

     NOW, THEREFORE, BE IT RESOLVED, that pursuant to Section 6.12 of the
Agreement, the Agreement is hereby amended to add the parties listed below as
signatories thereto, and such parties shall be considered Purchasers (as defined
in the Agreement) for all purposes thereunder. The Agreement shall remain in
full force and effect, as amended hereby.

     IN WITNESS WHEREOF, the undersigned has executed this Second Amendment to
the Amended and Restated Investors' Rights Agreement this 27th day of April,
2000.

                                   PURCHASERS:

                                   CREDIT SUISSE FIRST BOSTON VENTURE
                                   FUND I, L.P.,
                                   a Delaware limited partnership

                                   By: QBB Management I, L.L.C.
                                        its General Partner

                                   By: /s/ Frank Quattrone
                                       --------------------------------
                                        Frank Quattrone
                                        Member

                                   CREDIT SUISSE FIRST BOSTON
                                   TECHNOLOGY FUND II, L.P.,
                                   a Delaware limited partnership

                                   By: Merchant Capital, Inc.
                                        its General Partner

                                   By: /s/ Frank Quattrone
                                       --------------------------------
                                        Frank Quattrone
                                        Director

                                   /s/ Mark S. Maron
                                   ------------------------------------
                                   Mark S. Maron
<PAGE>

                  [Signature page to Second Amendment Amended
                   and Restated Investor's Rights Agreement]

ACKNOWLEDGED AND APPROVED BY:

MULTILINK TECHNOLOGY CORPORATION,
a California corporation

By: /s/ Richard N. Nottenburg
    ---------------------------------
        Richard N. Nottenburg
        President and CEO

                                      -2-
<PAGE>

      THIRD AMENDMENT TO AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT

     Reference is hereby made to that certain Amended and Restated Investors'
Rights Agreement dated March 31, 2000 (the "Agreement") by and among Multilink
Technology Corporation, a California corporation, and the parties named therein.

     NOW, THEREFORE, BE IT RESOLVED, that pursuant to Section 6.12 of the
Agreement, the Agreement is hereby amended to add the party listed below as a
signatory thereto, and such party shall be considered a Purchaser (as defined in
the Agreement) for all purposes thereunder. The Agreement shall remain in full
force and effect, as amended hereby.

     IN WITNESS WHEREOF, the undersigned has executed this Third Amendment to
the Amended and Restated Investors' Rights Agreement this 18th day of May, 2000.

                                   PURCHASER:

                                   INTERNATIONAL BUSINESS MACHINES CORPORATION,
                                   a New York corporation

                                   By: /s/ Patrick J. Glennon
                                      -----------------------------------------

                                   Name: Patrick J. Glennon
                                        ---------------------------------------
                                   Title: Director, Corporate Development
                                         --------------------------------------

ACKNOWLEDGED AND APPROVED BY:

MULTILINK TECHNOLOGY CORPORATION,
a California corporation

By: /s/ Richard N. Nottenburg
    ----------------------------
        Richard N. Nottenburg
        President and CEO<PAGE>

                                                                    EXHIBIT 10.7

LEASE AMENDMENT NUMBER ONE to Lease dated March 10, 1999, between SPIEKER
PROPERTIES, L.P., a California limited partnership, as Landlord, and Multilink
Technology Corporation, a California corporation, as Tenant, for the Premises
commonly known as 2850 Ocean Park Blvd., Santa Monica, California 90405.

Effective April 23, 1999, the above-described Lease shall be modified as follows
for Tenant's expansion into Suite 330 and Suite 335:

TERM; The term for Suites 330 and 335 shall commence May 15, 1999, or when the
----
improvements are substantially completed, whichever is earlier, and shall be
coterminous with the initial Garden Level space, which is September 30, 2000.

RENTABLE AREA. The rentable area shall include that portion of the 3/rd/ floor
-------------
designated as Suite 330 (approximately 2,361 rentable square feet) and Suite
335 (approximately 2,635 rentable square feet) as shown cross hatched on the
attached Exhibit B. Tenant's total rentable square area shall be increased to
9,677 rentable square feet.

BASIC MONTHLY RENTAL.
--------------------

The base rental amount for Suite 330 is as follows:

Commencement Date - September 30, 2000         $4,840.05 per month ($2.05/rsf)

The base rental amount for Suite 335 is as follows

Commencement Date - September 30, 2000         $5,401.75 per month ($2.05/rsf)

IMPROVEMENTS.
------------

Tenant agrees to Lease Suite 330 in its "as is" condition, except for the
following: Landlord agrees at Landlord's sole cost and expense to remove panic
hardware on the three (3) exterior corridor doors and install building standard
hardware; remove two (2) sets of interior doors and frame the doorways; remove
the display walls, patch and paint walls; remove the vertical blinds and replace
with building standard mini blinds on exterior windows; remove two (2) white
boards; remove verticals blinds along west wall.

Tenant agrees to lease Suite 335 in its "as is" condition, except for the
following: Landlord agrees at Landlord's sole cost and expense to install
additional electrical wall outlet every six (6) feet in the open area of the
suite; touch up paint as required; install suite door frame.

OPTION TO RENEW. Tenant shall, provided this Lease is in full force and effect
---------------
and Tenant is not and has not been in default under any of the terms and
conditions of this Lease, have one (1) option to renew this Lease for a term of
six (6) months for the Premises (Suite 330, Suite 335, and Garden Level Suite)
in "as is" condition and on the same terms and conditions set forth in this
Lease, except as modified by the terms, covenants and conditions set forth
below:

     (1)  If Tenant elects to exercise such option, then Tenant shall provide
          Landlord with written notice no later than 5:00 p.m. (Pacific Standard
          Time) on the date which is six (6) months prior to the expiration of
          the then current term of this Lease. If Tenant fails to provide such
          notice, Tenant shall have no further or additional right to
          extend or renew the term of this Lease.

     (2)  The Base Rent in effect at the expiration of the then current term of
          this Lease shall be increased to $2.22 per square foot, per month.

     (3)  Tenant's right to exercise any option to renew under this Paragraph
          shall be conditioned upon Tenant occupying the entire Premises and the
          same not being occupied by any assignee, subtenant or license other
          than Tenant or its affiliate at the time of exercise of any option and
          commencement of the renewal term. Tenant's exercise of any option to
          renew shall constitute a representation by Tenant to Landlord that as
          of the date of exercise of the option and the commencement of the
          applicable renewal term, Tenant does not intend to seek to assign this
          Lease in whole or in part, or sublet all or any portion of the
          Premises.

     (4)  Any exercise by Tenant of any option to renew under this Paragraph
          shall be irrevocable. If requested by Landlord, Tenant agrees to
          execute a lease amendment or, at Landlord's option, a new lease
          agreement on Landlord's then standard lease form for the Building,
          reflecting the foregoing terms and conditions, prior to the
          commencement of the renewal term. The option to renew granted under
          this Paragraph is not transferable; the parties hereto acknowledge and
          agree that they intend that the option to renew this Lease under this
          Paragraph shall be "personal" to the specific Tenant named in this
          Lease and that in no event will any assignee or subleasee have any
          rights to exercise such option(s) to renew

SECURITY DEPOSIT. Security deposit shall increase by $10,241.80 to reflect the
----------------
inclusion of Suites 330 ($4,840.05) and 335 ($5,401.75).

PARKING. Tenant shall be allowed an additional twenty (20) parking spaces at the
-------
prevailing market rate. Ten (10) unreserved surface parking spaces at the
prevailing market rate of $60/month/space, not including taxes; and Four (4)
reserved tandem spaces (8 spaces total) at the prevailing market rate of
$60/month/space, not including taxes; and Two (2) single reserved spaces at the
prevailing market rate of $120/month/space, not including taxes.

<PAGE>

[LOGO OF SPIEKER PROPERTIES]

[LOGO OF SANTA MONICA BUSINESS PARK]

                              2850 OCEAN PARK BOULEVARD
                              SUITE 330
                              Santa Monica, California
                              RENTABLE SQ. FT. 2,361

                              [PLAN APPEARS HERE]

                              2850 OCEAN PARK BLVD.
                              Santa Monica, california
                              Building W
                              SUITE 335
                              RENTABLE SQ. FT.: 2,664

                              [PLAN APPEARS HERE]
<PAGE>

IN WITNESS WHEREOF, the parties hereto have signed and sealed this Lease
Amendment Number One as dated below.

LANDLORD:       SPIEKER PROPERTIES, L.P.,
                a California limited partnership
                By:   Spieker Properties, Inc.,
                      a Maryland corporation
                Its:  General Partner

                By /s/ Mark Valentine
                   -----------------------------
                        Mark Valentine
                        Vice President

                Date 5/19/99
                     ---------------------------

TENANT:         MULTILINK TECHNOLOGY CORPORATION
                a California corporation

                By: /s/ Richard N. Nottenburg
                    ----------------------------
                Its: President
                     ---------------------------
                Date: 4/30/99
                      --------------------------
<PAGE>

                                   EXHIBIT B

                           [SITE PLAN APPEARS HERE]

                    Site Plan - Santa Monica Business Park
<PAGE>

                            BASIC LEASE INFORMATION
                                 OFFICE GROSS

<TABLE>
<S>                                              <C>
LEASE DATE:                                      March 10, 1999
(same as date in first paragraph of Lease)

TENANT:                                          Multilink Technology Corporation, a California Corporation

TENANT'S NOTICE ADDRESS:                         2850 Ocean Park Boulevard
                                                 Santa Monica, CA 90405

TENANT'S BILLING ADDRESS:                        2850 Ocean Park Boulevard
                                                 Santa Monica, CA 90405
TENANT CONTACT:    Dr. Richard Nottenburg        PHONE NUMBER:   310/581-6444
                                                 FAX NUMBER:     31O/581-6449

LANDLORD:                                        Spieker Properties, L.P., a California limited partnership

LANDLORD'S NOTICE ADDRESS:                       3250 Ocean Park Blvd., Suite 150
                                                 Santa Monica, CA 90405

LANDLORD'S REMITTANCE ADDRESS:                   P.O. Box 60077
                                                 Department 12371
                                                 Los Angeles, CA 90060-0077

Project Description:                             A project commonly known as Santa Monica Business Park consisting of
                                                 approximately 19 buildings as further shown on Exhibit B and attached hereto.

Building Description:                            A three story office building located at 2850 Ocean Park Boulevard, Santa
                                                 Monica as further shown on Exhibit B and attached hereto.

Premises:                                        Approximately 4,681 rentable square feet on the Garden level located in the
                                                 above described building as shown on Exhibit B and attached hereto.

Permitted Use:                                   General office use, as well as other legally permitted uses.

Occupancy Density:                               Four (4) individuals/1,000 rentable square feet.

Parking Density:                                 Tenant may rent up to 15 unreserved surface parking or in the parking
                                                 structure located in the west campus of the Santa Monica Business Park.

Parking and Parking Charge:                      15 non-exclusive spaces at $66.00 per space/per month plus applicable
                                                 municipal city tax per space (this rate is market adjusted and may vary).

Scheduled Term Commencement Date:                April 1, 1999

Scheduled Length of Term:                        18 months

Scheduled Term Expiration Date:                  September 30, 2000

Rent:

     Base Rent:                                  Months 1-18 4/1/99-9/30/2000: $8,893.9 (1.90 FSG/month)

     Base Year for Operating Expenses:           1999

Security Deposit:                                $ 8,893.90

Tenant's Proportionate Share:

     Of Building:                                3.29%
</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>

LANDLORD                                TENANT

Spieker Properties, L.P.,               Multilink Technology Corporation
a California limited partnership        a California Corporation

By: Spieker Properties, Inc.,
    a Maryland corporation,             By: /s/ Richard Nottenberg
                                            -------------------------------
    its general partner                     Richard Nottenberg
                                            Its: President

    By: /s/ Jeffrey K. Nickell
        ------------------------------
        Jeffrey K. Nickell
        Its: Vice President
<PAGE>

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                            Page
<S>                                                                         <C>
     Basic Lease Information...............................................  1
     Table of Contents.....................................................  2
1.   Premises..............................................................  4
2.   Possession and Lease Commencement.....................................  4
3.   Term..................................................................  4
4.   Use...................................................................  4
5.   Rules and Regulations.................................................  5
6.   Rent..................................................................  5
7.   Operating Expenses....................................................  5
8.   Insurance and Indemnification.........................................  7
9.   Waiver of Subrogation.................................................  8
10.  Landlord's Repairs and Maintenance....................................  9
11.  Tenant's Repairs and Maintenance......................................  9
12.  Alterations...........................................................  9
13.  Signs.................................................................  9
14.  Inspection/Posting Notices............................................ 10
15.  Services and Utilities................................................ 10
16.  Subordination......................................................... 11
17.  Financial Statements.................................................. 11
18.  Estoppel Certificate.................................................. 11
19.  Security Deposit...................................................... 11
20.  Limitation of Tenant's Remedies....................................... 11
21.  Assignment and Subletting............................................. 11
22.  Authority of Tenant................................................... 12
23.  Condemnation.......................................................... 12
24.  Casualty Damage....................................................... 13
25.  Holding Over.......................................................... 13
26.  Default............................................................... 13
27.  Liens................................................................. 14
28.  Substitution.......................................................... 15
29.  Transfers by Landlord................................................. 15
30.  Right of Landlord to Perform Tenant's Covenants....................... 15
31.  Waiver................................................................ 15
32.  Notices............................................................... 15
33.  Attorney's Fees....................................................... 16
34.  Successors and Assigns................................................ 16
35.  Force Majeure......................................................... 16
36.  Surrender of Premises................................................. 16
37.  Parking .............................................................. 16
38.  Miscellaneous......................................................... 16
39   Additional Provisions................................................. 17
40.  Jury Trial Waiver..................................................... 17
     Signatures............................................................ 18
</TABLE>

Exhibits:
     Exhibit A.............................................Rules and Regulations
     Exhibit B...................................Site Plan, Property Description
     Exhibit C............................Tenant Improvements and Specifications
     Additional Exhibits as Required

                                       3
<PAGE>

                               LEASE

THIS LEASE is made as of the 10/th/ day of March 1999, by and between Spieker
Properties, L.P., a California limited partnership (hereinafter called
"Landlord"), and Multilink Technology Corporation, a California Corporation
(hereinafter called "Tenant").

                              1. PREMISES

   Landlord leases to Tenant and Tenant leases from Landlord, upon the terms and
conditions hereinafter set forth, those premises (the "Premises") outlined in
red on Exhibit B and described in the Basic Lease Information. The Premises
shall be all or part of a building (the "Building") and of a project (the
"Project"), which may consist of more than one building and additional
facilities, as described in the Basic Lease Information. The Building and
Project are outlined in blue and green respectively on Exhibit B. Landlord and
Tenant acknowledge that the number of buildings and additional facilities which
constitute the Project may change from time to time, which may result in an
adjustment in Tenant's Proportionate Share, as defined in the Basic Lease
Information, as provided in Paragraph 7.A.

                     2. POSSESSION AND LEASE COMMENCEMENT

A.   Existing Improvements. If this Lease pertains to a Premises in which the
interior improvements have already been constructed ("Existing Improvements"),
the provisions of this Paragraph 2.A. shall apply and the term commencement date
("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) Landlord notifies Tenant
that Tenant may occupy the Premises. If for any reason Landlord cannot deliver
possession of the Premises to Tenant on the scheduled Term Commencement Date,
Landlord shall not be subject to any liability therefor, nor shall Landlord be
in default hereunder nor shall such failure affect the validity of this Lease,
and Tenant agrees to accept possession of the Premises at such time as Landlord
is able to deliver the same, which date shall then be deemed the Term
Commencement Date. Tenant shall not be liable for any Rent (defined below), for
any period prior to the Term Commencement Date. Tenant acknowledges that Tenant
has inspected and accepts the Premises in their present condition, "as is," and
as suitable for, the Permitted Use (as defined below), and for Tenant's intended
operations in the Premises. Tenant agrees that the Premises and other
improvements are in good and satisfactory condition as of when possession was
taken. Tenant further acknowledges that no representations as to the condition
or repair of the Premises nor promises to alter, remodel or improve the Premises
have been made by Landlord or any agents of Landlord unless such are expressly
set forth in this Lease. Upon Landlord's request, Tenant shall promptly execute
and return to Landlord a "Start-Up Letter" in which Tenant shall agree, among
other things, to acceptance of the Premises and to the determination of the Term
Commencement Date, in accordance with the terms of this Lease, but Tenant's
failure or refusal to do so shall not negate Tenant's acceptance of the Premises
or affect determination of the Term Commencement Date. Landlord represents that
all building systems (HVAC, plumbing, electrical, etc.) are in good working
order (within premises at lease) and will be responsible for primary repair of
all latent defects.

                                    3. TERM

   The term of this Lease (the "Term") shall commence on the Term Commencement
Date and continue in full force and effect for the number of months specified
as the Length of 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.

                                    4. USE

A.   General. Tenant shall use the Premises for the permitted use specified in
the Basic Lease Information ("Permitted Use") and for no other use or purpose.
Tenant shall control Tenant's employees, agents, licensees, contractors,
assignees and subtenants (collectively, "Tenant's Parties") in such a manner
that Tenant and Tenant's Parties cumulatively do not exceed the occupant density
(the "Occupancy Density") or the parking density (the "Parking Density")
specified in the Basic Lease Information at any time. Tenant shall pay the
Parking Charge specified in the Basic Lease Information as Additional Rent (as
hereinafter defined) hereunder. So long as Tenant is occupying the Premises,
Tenant and Tenant's Parties shall have the nonexclusive right to use, in common
with other parties occupying the Building or Project, the parking areas,
driveways and other common areas of the Building and Project, subject to the
terms of this Lease and such rules and regulations as Landlord may from time to
time prescribe. Landlord reserves the right, without notice or liability to
Tenant, and without the same constituting an actual or constructive eviction, to
alter or modify the common areas from time to time, including the location and
configuration thereof, and the amenities and facilities which Landlord may
determine to provide from time to time.

B.   Limitations. Tenant shall not permit any odors, smoke, dust, gas,
substances, noise or vibrations to emanate from the Premises or from tiny
portion of the common areas as a result of Tenant's or any Tenant's Party's use
thereof, nor take any action which would constitute a nuisance or would disturb,
obstruct or endanger any other tenants or occupants of the Building or Project
or elsewhere, or interfere with their respective premises or common areas.
Storage outside the Premises of materials, vehicles or any other items is
prohibited. Tenant shall not use or allow the Premises to be used for any
immoral, improper or unlawful 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 an waste in,

                                       4
<PAGE>

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 could
endanger the structure, or place any harmful substances 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. 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 above-referenced rules or any other terms or
provisions of such tenant's or occupant's lease or other contract, however,
Landlord agrees to make reasonable efforts to provide Tenant with the quiet
enjoyment of the Premises.

C.   Compliance with Regulations. Tenant shall at its sole cost and expense
strictly comply with all existing or future applicable municipal, state and
federal and other governmental statutes, rules, requirements, regulations, laws
and ordinances, including zoning ordinances and regulations, and covenants,
casements and restrictions of record governing and relating to the use,
occupancy or possession of the Premises, to Tenant's use of the common areas, or
to the use, storage, generation or disposal of Hazardous Materials (hereinafter
defined) (collectively "Regulations"). 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 at its sole cost and expense promptly comply with the
requirements of any board of fire underwriters or other similar body now or
hereafter constituted. Tenant shall not do or permit anything to be done in, on,
under or about the Project 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, defend (by counsel
reasonably acceptable to Landlord), protect and hold Landlord harmless from and
against any loss, cost, expense, damage, attorneys' fees or liability arising
out of the failure of Tenant to comply with any Regulation. Tenant's obligations
pursuant to the foregoing indemnity shall survive the expiration or earlier
termination of this Lease. Landlord represents the compliance of Premises,
Building and Project with all such regulations that have been notice to Landlord
by the Governing Authority as of the Term Commencement Date.

D.   Hazardous Materials. AS used in this Lease, "Hazardous Materials" shall
include, but not be limited to, hazardous, toxic and radioactive materials and
those substances defined as "hazardous substances," "hazardous materials,"
"hazardous wastes," "toxic substances," or other similar designations in any
Regulation. Tenant shall not cause, or allow any of Tenant's Parties to cause,
any Hazardous Materials to be handled, used, generated, stored, released or
disposed of in, on, under or about the Premises, the Building or the Project or
surrounding land or environment in violation of any Regulations. Tenant must
obtain Landlord's written consent prior to the introduction of any Hazardous
Materials onto the Project. Notwithstanding the foregoing, Tenant may handle,
store, use and dispose of products containing small quantities of Hazardous
Materials for "general office purposes" (such as toner for copiers) to the
extent customary and necessary for the Permitted Use of the Premises; provided
that Tenant shall always handle, store, use, and dispose of any such Hazardous
Materials in a safe and lawful manner and never allow such Hazardous Materials
to contaminate the Premises, Building, or Project or surrounding land or
environment. Tenant shall immediately notify Landlord in writing of any
Hazardous Materials' contamination of any portion of the Project of which Tenant
becomes aware, whether or not caused by Tenant. Landlord shall have the right
upon notice to tenant, at all reasonable times to inspect the Premises and to
conduct tests and investigations to determine whether Tenant is in compliance
with the foregoing provisions, the costs of all such inspections, tests and
investigations to be borne by Tenant. 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 attorneys' and consultants' fees and
court costs), demands, causes of action, or judgments arising out of or
related to the use, generation, storage, release, or disposal of Hazardous
Materials by Tenant or any of Tenant's Parties in, on, under or about the
Premises, the Building or the Project or surrounding land or environment, which
indemnity shall include without limitation, damages for personal or bodily
injury, property damage, damage to the environment or natural resources
occurring on or off the Premises, losses attributable to diminution in value or
adverse effects on marketability, the cost of any investigation, monitoring,
government oversight, repair, removal, remediation, restoration, abatement, and
disposal, and the preparation of any closure or other required plans, whether
such action is required or necessary prior to or following the expiration or
earlier termination of this Lease.  Neither the consent by Landlord to the use,
generation, storage, release or disposal of Hazardous Materials nor the strict
compliance by Tenant with all laws pertaining to Hazardous Materials shall
excuse Tenant from Tenant's obligation of indemnification pursuant to this
Paragraph 4.D. Tenant's obligations pursuant to the foregoing indemnity shall
survive the expiration or earlier termination of this Lease.

                           5. RULES AND REGULATIONS

   Tenant shall faithfully observe and comply with the building rules and
regulations attached hereto as Exhibit A and any other rules and regulations and
any non-discriminatory modifications or additions thereto which Landlord may
from time to time prescribe in writing for the purpose of maintaining the proper
care, cleanliness, safety, traffic flow and general order of the Premises or the
Building or Project. Tenant shall cause Tenant's Parties to comply with such
rules and regulations. 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 such rules and regulations, any other tenant's or occupant's lease or any
Regulations.

                                    6. RENT

A.   Base Rent. Tenant shall pay to Landlord and Landlord shall receive, without
notice or demand throughout the Term, Base 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, at the Remittance Address specified in the Basic
Lease Information or to such other place as Landlord may from time to time
designate in writing. Base 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 Base Rent commences on a day other than the first day of a month,
then Base 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.
The Base Rent payable by Tenant hereunder is subject to adjustment as provided
elsewhere in this Lease, as applicable. As used herein, the term "Base Rent"
shall mean the Base Rent specified in the Basic Lease Information as it may be
so adjusted from time to time.

B.   Additional Rent. All monies other than Base Rent required to be paid by
Tenant hereunder, including, but not limited to, Tenant's Proportionate Share
of Operating Expenses, as specified in Paragraph 7 of this Lease, charges to be
paid by Tenant under Paragraph 15, the interest and late charge described in
Paragraphs 26.C. and D., and any monies spent by Landlord pursuant to Paragraph
30, shall be considered additional rent ("Additional Rent"). "Rent" shall mean
Base Rent and Additional Rent.

                             7. OPERATING EXPENSES

A.   Operating Expenses. In addition to the Base Rent required to be paid
hereunder, beginning with the expiration of the Base Year specified in the Basic
Lease Information (the "Base Year"), Tenant shall pay as Additional Rent,
Tenant's Proportionate Share of the Building and/or Project (as applicable), 2s
defined in the Basic Lease Information, of increases in Operating Expenses
(defined below) over the Operating Expenses incurred by Landlord during the Base
Year (the "Base Year Operating Expenses"), in the manner set forth below. Tenant
shall pay the applicable Tenant's Proportionate Share of each such Operating
Expenses. Landlord and Tenant acknowledge that if the number of buildings
which constitute the Project increases or decreases, or if physical changes
are made to the Premises, Building or Project or the configuration of any
thereof, Landlord may at its discretion reasonably adjust Tenant's Proportionate
Share of the Building or Project to reflect the change. Landlord's determination
of Tenant's Proportionate Share of the Building and of the Project shall be
conclusive so long as it is reasonably and consistently applied. "Operating
Expenses" shall mean all expenses and costs of every kind and nature which
Landlord shall pay or become obligated to pay, because of or in connection with
the ownership, management, maintenance, repair, preservation, replacement and
operation of the Building or Project and its supporting facilities and such

                                       5
<PAGE>

additional facilities now and in subsequent years as may be determined by
Landlord to be necessary or desirable to the Building and/or Project (as
determined in a reasonable manner) other than those expenses and costs which are
specifically attributable to Tenant or which are expressly made the financial
responsibility of Landlord or specific tenants of the Building or Project
pursuant to this Lease. Operating Expenses shall include, but are not limited
to, the following:

     (1)  Taxes. All real property taxes and assessments, possessory interest
     taxes, sales taxes, personal property taxes, business or license taxes or
     fees, gross receipts taxes, service payments in lieu of such taxes or fees,
     annual or periodic license or use fees, excises, transit charges, and other
     impositions, 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 now or hereafter assessed, levied, charged,
     confirmed, or imposed by any public authority upon the Building or Project,
     its operations or the Rent (or any portion or component thereof), or any
     tax, assessment or fee imposed in substitution, partially or totally, of
     any of the above. Operating Expenses shall also include any taxes,
     assessments, reassessments, or other fees or impositions with respect to
     the development, leasing, management, maintenance, alteration, repair, use
     or occupancy of the Premises, Building or Project or any portion thereof,
     including, without limitation, by or for Tenant, and all increases therein
     or reassessments thereof whether the increases or reassessments result from
     increased rate and/or valuation (whether upon a transfer of the Building
     or Project or any portion thereof or any interest therein or for any other
     reason). Operating Expenses shall not include inheritance or estate taxes
     imposed upon or assessed against the interest of any person in the Project,
     or taxes computed upon the basis of the net income of any owners of any
     interest in the Project. If it shall not be lawful for Tenant to reimburse
     Landlord for all or any part of such taxes, the monthly rental payable to
     Landlord under this Lease shall be revised to net Landlord the same net
     rental after imposition of any such taxes by Landlord as would have been
     payable to Landlord prior to the payment of any such taxes.

     (2)  Insurance. All insurance premiums and costs, including, but not
     limited to, any deductible amounts, premiums and other costs of insurance
     reasonably incurred by Landlord, including for the insurance coverage set
     ----------
     forth in Paragraph 8.A. herein.

     (3)  Common Area Maintenance.

          (a)  Repairs, replacements, and general maintenance of and for the
          Building and Project and public and common areas and facilities of and
          comprising the Building and Project, including, but not limited to,
          the roof and roof membrane, windows, elevators, restrooms, conference
          rooms, health club facilities, lobbies, mezzanines, balconies,
          mechanical rooms, building exteriors, alarm systems, pest
          extermination, landscaped areas, parking and service areas, driveways,
          sidewalks, loading areas, fire sprinkler systems, sanitary and storm
          sewer lines, utility services, heating/ventilation/air conditioning
          systems, electrical, mechanical or other systems, telephone equipment
          and wiring servicing, plumbing, lighting, and any other items or areas
          which affect the operation or appearance of the Building or Project,
          which determination shall be at Landlord's discretion, except for:
          those items expressly made the financial responsibility of Landlord
          pursuant to Paragraph 10 hereof; those items to the extent paid for by
          the proceeds of insurance; and those items attributable solely or
          jointly to specific tenants of the Building or Project.

          (b)  Repairs, replacements, and general maintenance shall include the
          cost of any capital improvements made to or capital assets acquired
          for the Project or Building that in Landlord's discretion may reduce
          any other Operating Expenses, (but limited to the extent of such
                                         ---------------------------------
          reasonably anticipated savings) including present or future repair
          ------------------------------
          work are reasonably necessary for the health and saftey of the
          occupants of the Building or Project, or are required to comply with
          any Regulation, such costs or allocable portions thereof to be
          amortized over such reasonable period as Landlord shall determine,
          together with interest on the unamortized balance at the publicly
          announced "prime rate" charged by Wells Fargo Bank, N.A. (San
          Francisco) or its successor at the time such improvements or capital
          assets are constructed or acquired, plus two (2) percentage points, or
          in the absence of such prime rate, then at the U.S. Treasury six-month
          market note (or bond, if so designated) rate as published by any
          national financial publication selected by Landlord, plus four (4)
          percentage points, but in no event more than the maximum rate
          permitted by law, plus reasonable financing charges.

          (c)  Payment under or for any casement, license, permit, operating,
          agreement, declaration, restrictive covenant or instrument relating to
          the Building or Project.

          (d)  All reasonable expenses and rental related to services and costs
                   ----------
          of supplies, materials and equipment used in operating, managing and
          maintaining the Premises, Building and Project, the equipment therein
          and the adjacent sidewalks, driveways, parking and service areas,
          including, without limitation, expenses related to service agreements
          regarding security, fire and other alarm systems, janitorial services,
          window cleaning, elevator maintenance, Building exterior maintenance,
          landscaping and expenses related to the administration, management and
          operation of the Project, including without limitation salaries, wages
          and benefits and management office rent.

          (e)  The cost of supplying any services and utilities which benefit
          all or a portion of the Premises, Building or Project, including
          without limitation services and utilities provided pursuant to
          Paragraph 15 hereof.

          (f)  Legal expenses and the cost of audits by certified public
          accountants; provided, however, that legal expenses chargeable as
          Operating Expenses shall not include the cost of negotiating leases,
          collecting rents, evicting tenants nor shall it include costs incurred
          in legal proceedings with or against any third party, including any
                                                   --------------------------
          tenant or to enforce the provisions of any lease.

          (g)  A management and accounting cost recovery fee equal to five
          percent (5%) of the sum of the Project's base rents and Operating
          Expenses to the extent not included in such base rents (other than
          such management and accounting fee).

If the rentable area of the Building and/or Project is not fully occupied during
any fiscal year of the Term as determined by Landlord, an adjustment may be made
in Landlord's discretion in computing the Operating Expenses for such year so
that Tenant pays an equitable portion of all variable items (e.g., utilities,
janitorial services and other component expenses that are affected by variations
in occupancy levels) of Operating Expenses, as reasonably determined by
Landlord; provided, however, that in no event shall Landlord be entitled to
collect in excess of one hundred percent (100%) of the total Operating
Expenses from all of the tenants in the Building or Project, as the case may be,
and in no instance shall Tenant pay more than its proportionate share of
------------------------------------------------------------------------
operating expenses.
------------------

Operating Expenses shall not include the cost of providing tenant improvements
or other specific costs incurred for the account of, separately billed to and
paid by specific tenants of the Building or Project, the initial construction
cost of the Building, or debt service on any mortgage or deed of trust recorded
with respect to the Project other than pursuant to Paragraph 7.A.(3)(b) above.
Additional exclusions from operating expenses:
---------------------------------------------

  1. Costs of repairing major and/or latent defects in construction.
  -----------------------------------------------------------------

  2. Costs for which Landlord is reimbursed by any other tenant of occupant of
  ----------------------------------------------------------------------------
     the Building or Project.
     -----------------------

                                       6
<PAGE>

  3. Fines penalties and interest on late payments.
     ---------------------------------------------

  4. Expenses in connection with services and/or other benefits which are not
     ------------------------------------------------------------------------
     offered to Tenant or are provided to Tenant at a direct charge but which
     ------------------------------------------------------------------------
     are provided to another tenant of the Project without separate charge.
     ---------------------------------------------------------------------

  5. Costs arising from Landlord's political or charitable contributions.
     -------------------------------------------------------------------

  6. Costs, other than those incurred in ordinary maintenance and repair, for
     ------------------------------------------------------------------------
     sculpture, paintings, fountains or other objects of art.
     -------------------------------------------------------

  7. Costs to remove or otherwise remediate Hazardous Materials or comply with
     -------------------------------------------------------------------------
     laws relating to Hazardous Materials.
     ------------------------------------

  8. Reserves for future expenses beyond current year anticipated expenses.
     ---------------------------------------------------------------------

  9. Repairs or replacements to any utility systems which are dedicated to the
     -------------------------------------------------------------------------
     use of a single tenant.
     ----------------------

Notwithstanding anything herein to the contrary, in any instance wherein
Landlord, reasonably deems Tenant to be responsible for any amounts greater than
Tenant's Proportionate Share, Landlord shall have the right to reasonably
                                                               ----------
allocate such costs.
         ----      -

The above enumeration of services and facilities shall not be deemed to impose
an obligation on Landlord to make available or provide such services or
facilities except to the extent if any that Landlord has specifically agreed
elsewhere in this Lease to make the same available or provide the same. Without
limiting the generality of the foregoing, Tenant acknowledges and agrees that it
shall be responsible for providing adequate security for its use of the
Premises, the Building and the Project and that Landlord shall have no
obligation or liability with respect thereto, except to the extent if any that
Landlord has specifically agreed elsewhere in this Lease to provide the same.

B.   Payment of Estimated Operating Expenses. "Estimated Operating Expenses" for
any particular year shall mean Landlord's estimate of the Operating Expenses for
such fiscal year made with respect to 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 a reasonable manner. During the last month of each fiscal
year during the Term, or as soon thereafter as practicable, Landlord shah give
Tenant written notice of the Estimated Operating Expenses for the ensuing fiscal
year. Tenant shall pay Tenant's Proportionate Share of the difference between
Estimated Operating Expenses and Base Year Operating Expenses with installments
of Base Rent for the fiscal year to which the Estimated Operating Expenses
applies in monthly installments on the first day of each calendar month during
such year, in advance. Such payment shall be construed to be Additional Rent for
all purposes hereunder. If at any time during the course of the fiscal year,
Landlord determines that Operating Expenses are projected to vary from the
then Estimated Operating Expenses by more than five percent (5%), Landlord may,
by written notice to Tenant, revise the Estimated Operating Expenses for the
balance of such fiscal year, and Tenant's monthly installments for the remainder
of such year shall be adjusted so that by the end of such fiscal year Tenant has
paid to Landlord Tenant's Proportionate Share of the revised difference between
Estimated Operating Expenses and Base Year Operating Expenses for such year,
such revised installment amounts to be Additional Rent for all purposes
hereunder.

C.   Computation of Operating Expense Adjustment. "Operating Expense Adjustment"
shall mean the difference between Estimated Operating Expenses and actual
Operating Expenses for any fiscal year, over Base Year Operating Expenses,
determined as hereinafter provided. Within one hundred twenty (120) days after
the end of each fiscal year, or as soon thereafter as practicable, Landlord
shall deliver to Tenant a statement of actual Operating Expenses for the fiscal
year just ended, accompanied by a computation of Operating Expense Adjustment.
If such statement shows that Tenant's payment based upon Estimated Operating
Expenses is less than Tenant's Proportionate Share of actual increases in
Operating Expenses over the Base Year Operating Expenses, then Tenant shall pay
to Landlord the difference within thirty (30) days after receipt of such
                                  ----------------
statement, such payment to constitute Additional Rent for all purposes
hereunder. If such statement shows that Tenant's payments of Estimated Operating
Expenses exceed Tenant's Proportionate Share of actual increases in Operating
Expenses over the Base Year Operating Expenses, Landlord shall pay to Tenant the
difference within twenty (20) days after delivery of such statement to Tenant.
If this Lease has been terminated or the Term hereof has expired prior to the
date of such statement, then the Operating Expense Adjustment shall be paid by
the appropriate party within thirty (30) days after the date of delivery of the
                             ----------------
statement. Tenant's obligation to pay increases in Operating Expenses over the
Base Year Operating Expenses shall commence on January 1 of the year succeeding
the Base Year. Should this Lease terminate at any time other than the last day
of the fiscal year, Tenant's Proportionate Share of the Operating Expense
Adjustment shall be prorated based on a month of 30 days and the number of
calendar months during such fiscal year that this Lease in effect. Tenant shall
in no event be entitled to any credit if Operating Expenses in any year are less
than Base Year Operating Expenses. Notwithstanding anything to the contrary
contained in Paragraph 7.A or 7.B, Landlord's failure to provide any notices or
statements within the time periods specified in those paragraphs shall in no way
excuse Tenant from its obligation to pay Tenant's Proportionate Share of
increases in Operating Expenses.

D).  Gross Lease. This shall be a gross Lease; however, it is intended that Base
Rent shall be paid to Landlord absolutely net of all costs and expenses other
than Operating Expenses each year equal to Tenant's Proportionate Share of Base
Year Operating Expenses, except as otherwise specifically provided to the
contrary in this Lease. The provisions for payment of increases in Operating
Expenses and the Operating Expense 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 the ownership, management,
maintenance, repair, preservation, replacement and operation of the Building
and/or Project and its supporting facilities and such additional facilities, in
excess of the Base Year Operating Expenses, now and in subsequent years as may
be determined by Landlord to be necessary or desirable to the Building and/or
Project.

E.   Tenant Audit. If 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 forty-five (45) days following receipt of such statement
                      ---------------
and upon the condition that Tenant shall first deposit with Landlord the full
amount in dispute, to cause Landlord's books and records with respect to
Operating Expenses for such fiscal year to be audited by certified public
accountants selected by Tenant and subject to Landlord's reasonable right of
approval. The Operating Expense Adjustment shall be appropriately adjusted on
the basis of such audit. If such audit discloses a liability for a refund in
excess of five percent (5%) of Tenant's Proportionate Share of the Operating
          ----          -
Expenses 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
forty-five (45) days after 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.

                      8.  INSURANCE AND INDEMNIFICATION

A.   Landlord's Insurance. All insurance maintained by Landlord shall be for the
sole benefit of Landlord and under Landlord's sole control

     (1)  Property Insurance. Landlord agrees to maintain property insurance
     insuring the Building against damage or destruction due to risk including
     fire, vandalism, and malicious mischief in an amount not less than the
     replacement cost thereof, in the form and with deductibles and
     endorsements as selected by Landlord. At its election, Landlord may instead
     (but shall

                                       7
<PAGE>

     have no obligation to) obtain "All Risk" coverage, and may also obtain
     earthquake, pollution, and/or flood insurance in amounts selected by
     Landlord.

     2)   Optional Insurance. Landlord, at Landlord's option, may also (but
     shall have no obligation to) carry insurance against loss of rent, in an
     amount equal to the amount of Base Rent and Additional Rent that Landlord
     could be required to abate to all Building tenants in the event of
     condemnation or casualty damage for a period of twelve (12) months.
     Landlord may also (but shall have no obligation to) carry such other
     insurance as Landlord may deem prudent or advisable, including, without
     limitation, liability insurance in such amounts and on such terms as
     Landlord shall determine. Landlord shall not be obligated to insure, and
     shall have no responsibility whatsoever for any damage to, any furniture,
     machinery, goods, inventory or supplies, or other personal property or
     fixtures which Tenant may keep or maintain in the Premises, or any
     leasehold improvements, additions or alterations within the Premises.

B.   Tenant's Insurance.

     (1)  Property Insurance. Tenant shall procure at Tenant's sole cost and
     expense and keep in effect from the date of this Lease and at all times
     until the end of the Term, insurance on all personal property and fixtures
     of Tenant and all improvements, additions or alterations made by or for
     Tenant to the Premises on an "All Risk" basis, insuring such property for
     the full replacement value of such property.

     (2)  Liability Insurance. Tenant shall procure at Tenant's sole cost and
     expense and keep in effect from the date of this Lease and at all times
     until the end of the Term Commercial General Liability insurance covering
     bodily injury and property damage liability occurring in or about the
     Premises or arising out of the use and occupancy of the Premises and the
     Project, and any part of either, and any areas adjust thereto, and the
     business operated by Tenant or by any other occupant of the Premises. Such
     insurance shall include contractual liability insurance coverage insuring
     all of Tenant's indemnity obligations under this Lease. Such coverage shall
     have a minimum combined single limit of liability of at least Two Million
     Dollars ($2,000,000.00), and a minimum general aggregate limit of Three
     Million Dollars ($3,000,000.00), with an "Additional Insured - Managers or
     Lessors of Premises Endorsement." All such policies shall be written to
     apply to all bodily injury (including death), property damage or loss,
     personal and advertising injury and other covered loss, however occasioned,
     occurring during the policy term, shall be endorsed to add Landlord and any
     party holding an interest to which this Lease may be subordinated as an
     additional insured, and shall provide that such coverage shall be "primary"
     and non-contributing with any insurance maintained by Landlord, which shall
     be excess insurance only. Such coverage shall also contain endorsements
     including employees as additional insureds if not covered by Tenant's
     Commercial General Liability Insurance. All such insurance shall provide
     for the severability of interests of insureds; and shall be written on an
     "occurrence" basis, which shall afford covered for all claims based on
     acts, omissions, injury and damage, which occurred or arose (or the onset
     of which occurred or arose) in whole or in during the policy period.

     (3)  Workers' Compensation and Employers' Liability Insurance. Tenant shall
     carry Workers' Compensation Insurance as required by any Regulation,
     throughout the Term at Tenant's sole cost and expense. Tenant shall also
     carry Employers Liability Insurance in amounts not less than One Million
     Dollars ($1,000,000) each accident for bodily injury by accident; One
     Million Dollars ($1,000,000) policy limit for bodily injury by disease; and
     One Million Dollars ($1,000,000) each employee for bodily injury by
     disease, throughout the Term at Tenant's sole cost and expense.

     (4)  General Insurance Requirements. All coverages described in this
     Paragraph 8.B. shall be endorsed to (i) provide Landlord with thirty (30)
     days' notice of cancellation or change in terms; and (ii) waive all rights
     of subrogation by the insurance carrier against Landlord. If at any time
     during the amount or coverage of insurance which Tenant is required to
     carry under this Paragraph 8.B. is, in Landlord's reasonable judgment,
     materially less than the amount or type of insurance coverage typically
     carried by owners or tenants of properties located in the general area in
     which the Premises are located which are similar to and operated for
     similar purposes as the Premises or if Tenant's use of the Premises should
     change with or without Landlord's consent, Landlord shall have the right to
     require Tenant to increase the amount or change the types of insurance
     coverage required under this Paragraph 8.B. All insurance policies required
     to be carried by Tenant under this Lease shall be written by companies
     rated A X or better in "Best's Insurance Guide" and authorized to do
     business in the State of California. In any event deductible amounts under
     all insurance policies required to be carried by Tenant under this Lease
     shall not exceed Five Thousand Dollars ($5,000.00) per occurrence. Tenant
     shall deliver to Landlord on or before the Term Commencement Date, and
     thereafter at least thirty (30) days before the expiration dates of the
     expired policies, certified copies of Tenant's insurance policies, or a
     certificate evidencing the same issued by the insurer thereunder; and, if
     Tenant shall fail to procure such insurance, or to deliver such policies or
     certificates, Landlord may, at Landlord's option and in addition to
     Landlord's other remedies in the event of a default by Tenant hereunder,
     procure the same for the account of Tenant, and the cost thereof shall be
     paid to Landlord as Additional Rent.

C.   Indemnification. 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' and consultants' fees and
court costs, demands, causes of action, or judgments, directly or indirectly
arising out of or related to: (1) claims of injury to or death of persons or
damage to property occurring or resulting from the use or occupancy of the
Premises, Building or Project by Tenant or Tenant's Parties, (2) claims arising
from work or labor performed, or for materials or supplies furnished to or at
the request or for the account 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 willful misconduct of Tenant or Tenant's Parties. The foregoing indemnity by
   ---------------------
Tenant shall not be applicable to claims to the extent arising from the
negligence or willful misconduct of Landlord. Landlord shall not be liable to
Tenant and Tenant hereby waives all claims against Landlord for any injury or
damage to any person or property in or about the Premises, Building or Project
by or from any cause whatsoever (other than Landlord's negligence or willful
misconduct) and, without limiting the generality of the foregoing, whether
caused by water leakage of any character from the roof, walls, basement or other
portion of the Premises, Building or Project, or caused by gas, fire, oil or
electricity in, on or about the Premises, Building or Project. The provisions of
this Paragraph shall survive the expiration or earlier termination of this
Lease.

                          9. WAIVER OF SUBROGATION

   To the extent permitted by law and without affecting the coverage provided by
insurance to be maintained hereunder or any other rights or remedies, Landlord
and Tenant each waive any right to recover against the other for: (a) damages
for injury to or death of persons; (b) damages to property, including personal
property; (c) damages to the Premises or any part thereof; and (d) claims
arising by reason of the foregoing due to hazards covered by insurance
maintained or required to be maintained pursuant to this Lease to the extent of
proceeds recovered therefrom, or proceeds which would have been recoverable
therefrom in the case of the failure of any party to maintain any insurance
coverage required to be maintained by such party pursuant to this Lease. This
provision is intended to waive fully, any rights and/or claims arising by reason
of the foregoing, but only to the extent that any of the foregoing damages
and/or claims referred to above are covered or would be covered, and only to the
extent of such coverage, by insurance actually carried or required to be
maintained pursuant to this Lease by either Landlord or Tenant. This provision
is also 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. Subject to all qualification of this Paragraph

                                       8
<PAGE>

9. Landlord waives its rights as specified in this Paragraph 9 with respect to
any subtenant that it has approved pursuant to Paragraph 21 but only in exchange
for the written waiver of such rights to be given by such subtenant to Landlord
upon such subtenant taking possession of the Premises or a portion thereof. Each
party shall cause each insurance policy obtained by it to provide that the
insurance company waives all right of recovery by way of subrogation against
either party in connection with any damage covered by any policy.

                    10.  LANDLORD'S REPAIRS AND MAINTENANCE

  Landlord shall at Landlord's expense maintain in good repair, reasonable wear
and tear excepted, the roof, foundations, and exterior walls of the Building.
The term "exterior walls" as used herein shall not include windows, glass or
plate glass, doors, special store fronts or office entries. Any damage caused by
or repairs necessitated by any negligence or act of Tenant or Tenant's Parties
may be repaired by Landlord at Landlord's option and Tenant's expense. Tenant
shall immediately give Landlord written notice of any defect or need of repairs
in such components of the Building for which Landlord is responsible, after
which Landlord shall have a reasonable opportunity and the right to enter the
Premises at all reasonable times 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, and there shall be no abatement of rent and
no liability of Landlord by reason of any injury to or interference with
Tenant's business arising from the making of repairs, alterations or
improvements in or to any portion of the Premises, the Building or the Project
or to fixtures, appurtenances or equipment in the Building, except as provided
in Paragraph 24. By taking possession of the Premises, Tenant accepts them "as
is," as being in good order, condition and repair and the condition in which
Landlord is obligated to deliver them and suitable for the Premises Use and
Tenant's intended operations in the Premises, whether or not any notice of
acceptance is given.

                     11.  TENANT'S REPAIRS AND MAINTENANCE

  Tenant shall at all times during the Term at Tenant's expense maintain all
parts of the Premises and such portions of the Building as are within the
exclusive control of Tenant in a first-class, good, clean and secure condition
and promptly make all necessary repairs and replacements, as determined by
Landlord, with materials and workmanship of the same character, kind and quality
as the original. Notwithstanding anything to the contrary contained herein,
Tenant shall, at its expense, promptly repair any damage to the Premises or the
Building or Project resulting from or caused by any negligence of Tenant or
Tenant's Parties.

                             12.  ALTERATIONS

A.   Tenant shall not make, or allow to be made, any alterations, physical
additions, improvements or partitions, including without limitation the
attachment of any fixtures or equipment, in, about or to the Premises
("Alterations") without obtaining the prior written consent of Landlord, which
consent shall not be unreasonably withheld with respect to proposed Alterations
which: (a) comply with all applicable Regulations; (b) are, in Landlord's
reasonable opinion, compatible with the Building or the Project and its
----------
mechanical, plumbing, electrical,heating/ventilation/air conditioning systems,
and will not cause the Building or Project or such systems to be required to be
modified to comply with any Regulations (including, without limitation, the
Americans With Disabilities Act); and (c) will not interfere with the use and
occupancy of any other portion of the Building or Project by any other tenant or
its invitees. Specifically, but without limiting the generality of the
foregoing, Landlord shall have the right of written consent for all plans and
specifications for the proposed Alterations, construction means and methods, all
appropriate permits and licenses, any contractor or subcontractor to be employed
on the work of Alterations, and the time for performance of such work, and may
impose reasonable rules and regulations for contractors and subcontractors
       ----------
performing such work. Tenant shall also supply to Landlord any documents and
information reasonably requested by Landlord in connection with Landlord's
consideration of a request for approval hereunder. Tenant shall cause all
Alterations to be accomplished in a first-class, good and workmanlike manner,
and to comply with all applicable Regulations and Paragraph 27 hereof. Tenant
shall at Tenant's sole expense, perform any additional work required under
applicable Regulations due to the Alterations hereunder. No review or consent by
Landlord of or to any proposed Alteration or additional work shall constitute a
waiver of Tenant's obligations under this Paragraph 12, nor constitute any
warranty or representation that the same complies with all applicable
Regulations, for which Tenant shall at all times be solely responsible. Tenant
shall reimburse Landlord for all reasonable out of pocket costs which Landlord
                                 ------------------------
may incur in connection with granting approval to Tenant for any such
Alterations, including any costs or expenses which Landlord may incur in
electing to have outside architects and engineers review said plans and
specifications, and shall pay Landlord an administration fee of five percent of
the cost of the Alterations as Additional Rent hereunder. All such Alterations
shall remain the property of Tenant until the expiration or earlier termination
of this Lease, at which time they shall be and become the property of Landlord;
provided, however, that Landlord may, if Landlord has made predetermined request
                                      ------------------------------------------
(at the time of the approval of the installation), require that Tenant, at
-------------------------------------------------
Tenant's expense, remove any or all Alterations made by Tenant and restore the
Premises by the expiration or earlier termination of this Lease, to their
condition existing prior to the construction of any such Alterations. All such
removals and restoration shall be accomplished in a first-class and good and
workmanlike manner so as not to cause any damage to the Premises or Project
whatsoever. If Tenant fails to remove such Alterations or Tenant's trade
fixtures or furniture or other personal property, Landlord may keep and use them
or remove any of them and cause them to be stored or sold in accordance with
applicable law, at Tenant's sole expense. In addition to and wholly apart from
Tenant's obligation to pay Tenant's Proportionate Share of Operating Expenses,
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 fixtures or personal property, on the value
of Alterations within the Premises, and on Tenant's interest pursuant to this
Lease, or any increase in any of the foregoing based on such Alterations. 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.

Notwithstanding the foregoing, at Landlord's option (but without obligation),
all or any portion of the Alterations shall be performed by Landlord for
Tenant's account and Tenant shall pay Landlord's estimate of the cost thereof
(including a reasonable charge for Landlord's overhead and profit) prior to
commencement of the work. In addition, at Landlord's election and
notwithstanding the foregoing, however, Tenant shall pay to Landlord the cost of
removing any such Alterations and restoring the Premises to their original
condition such cost to include a reasonable charge for Landlord's overhead and
profit as provided above, and such amount may be deducted from the Security
Deposit or any other sums or amounts held by Landlord under this Lease.

B. In compliance with Paragraph 27 hereof, at least then (10) business days
before beginning construction of any Alteration, Tenant shall give Landlord
written notice of the expected commencement date of that construction to permit
Landlord to post and record a notice or non-responsibility. Upon substantial
completion of construction, if the law so provides, Tenant shall cause a timely
notice of completion to be recorded in the office of the recorder of the county
in which the Building is located.

                                 13.  SIGNS

Tenant shall not place, install affix, paint or maintain any signs, notices,
graphics or banners whatsoever or any window decor which is visible in or from
public view or corridors, the common areas or the exterior of the Premises or
the Building, in or on any exterior window or window fronting upon any common
areas or service area without Landlord's prior written approval which Landlord
shall have the right to withhold in it absolute and sole discretion; provided
that Tenant's name shall be included in any Building-standard door and directory
signage, if any, in accordance with Landlord's Building signage program,
including without limitation, payment by Tenant of any fee charged by Landlord
for maintaining such signage, which fee shall constitute Additional Rent
hereunder. Any installation of signs, notices graphics or banners on or about
the Premises or Project approved by Landlord shall be subject to any Regulations
and to any other requirements imposed by Landlord. Tenant shall remove all such
signs or graphics by the expiration or nay earlier termination of this

                                       9

<PAGE>

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.

                       14.    INSPECTION/POSTING NOTICES

After reasonable notice, except in emergencies where no such notice shall be
required, Landlord and Landlord's 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, improvements or
alterations to the Premises, Building 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 to others, or for any other purpose as Landlord may deem
necessary or desirable; provided, however, that Landlord shall use reasonable
efforts not to 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. Tenant waives any claim for damages for any injury or
inconvenience to or interference with Tenant's business, any loss of occupancy
or quiet enjoyment of the Premises, and any other loss occasioned thereby.
Landlord shall at all times have and retain a key with which to unlock all of
the doors in, upon and about the Premises, excluding Tenant's vaults and safes
or special security areas (designated in advance), and Landlord shall have the
right to use any and all means which Landlord may deem necessary or proper to
open said doors in an emergency, in order to obtain entry to any portion of the
Premises, and any entry to the Premises or portions thereof obtained by Landlord
by any of said means, or otherwise, shall not be construed to be a forcible or
unlawful entry into, or a detainer of, the Premises, or an eviction, actual or
constructive, of Tenant from the Premises or any portions thereof. At any time
within six (6) months prior to the expiration of the Term or following any
earlier termination of this Lease or agreement to terminate this Lease, Landlord
shall have the right to erect on the Premises, Building and/or Project a
suitable sign indicating that the Premises are available for lease.

                          15. SERVICES AND UTILITIES

A. Subject to the provisions elsewhere herein contained and to the rules and
regulations of the Building, Landlord shall furnish to the Premises during
ordinary business hours of generally recognized business days, to be determined
by Landlord (but exclusive, in any event, of Saturdays, Sundays and legal
holidays), water for lavatory and drinking purposes and electricity, head and
air conditioning as usually furnished or supplied for use of the Premises for
reasonable and normal office use as of the date Tenant takes possession of the
Premises as determined by Landlord (but not including above-standard or
continuous cooling for excessive hear-generating machines, excess lighting or
equipment), janitorial services during the times and in the manner that such
services are, in Landlord's judgement; customarily furnished in comparable
office buildings in the immediate market area, and elevator service, which shall
mean service either by nonattended automatic elevators or elevators with
attendants, or both, at the option of Landlord. Landlord shall have no
obligation to provide additional or after-hours electricity, heating or air
conditioning, but if Landlord elects to provide such services at Tenant's
request, Tenant shall pay to Landlord a reasonable charge for such services as
determined by Landlord. Tenant agrees to keep and cause to be kept closed all
window covering when necessary because of the sun's position, and Tenant also
agrees at all times to cooperate fully with Landlord and to abide by all of the
regulations and requirements which Landlord may prescribe for the proper
functioning and protection of electrical, heating, ventilating and air
conditioning systems. Wherever heat-generating machines, excess lighting or
equipment are used in the Premises which affect the temperature otherwise
maintained by the air conditioning system, Landlord reserves the right to
install supplementary air conditioning units in the Premises and the cost
thereof, including the cost of installation and the cost of operation and
maintenance thereof, shall be paid by Tenant to Landlord upon demand by
Landlord.

B.   Tenant shall not without written consent of Landlord use any apparatus,
equipment or device in the Premises, including without limitation, computers,
electronic data processing machines, copying machines, and other machines, using
excess lighting or using electric current, water, or any other resource in
excess of or which will in any way increase the amount of electricity, water, or
any other resource being furnished or supplied for the use of the Premises for
reasonable and normal office use, in each case as of the date Tenant
takes possession of the Premises as determined by Landlord, or which will
require additions or alterations to or interfere with the Building power
distribution systems; nor connect with electric current, except through existing
electrical outlets in the Premises or water pipes, any apparatus, equipment or
device for the purpose of using electrical current, water, or any other
resource. If Tenant shall require water or electric current or any other
resource in excess of that being furnished or supplied for the use of the
Premises as of the date Tenant takes possession of the Premises as determined by
Landlord, Tenant shall first procure the written consent of Landlord which
Landlord may refuse, to the use thereof, and Landlord may cause a special meter
to be installed in the Premises so as to measure the amount of water, electric
current or other resource consumed for any such other use. Tenant shall pay
directly to Landlord as an addition to and separate from payment of Operating
Expenses the cost of all such additional resources, energy, utility service and
meters (and of installation, maintenance and repair thereof and of any
additional circuits or other equipment necessary to furnish such additional
resources, energy, utility or service). Landlord may add to the separate or
metered charge a recovery of additional expense incurred in keeping account of
the excess water, electric current or other resource so consumed. 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 such utilities or services, or any
change in the character or means of supplying or providing any such utilities or
services or any supplier thereof; (b) the 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, or any
other accidents or other conditions beyond the reasonable control of Landlord or
because of any interruption of service due to Tenant's use of water, electric
current or other resource in excess of that being supplied or furnished for the
use of the Premises as of the date Tenant takes possession of the Premises; (c)
the inadequacy, 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, whether by Regulation or
otherwise; or (d) the partial or total unavailability of any such utilities or
services to the Premises or the Building, whether by Regulation or otherwise;
nor shall any such occurrence constitute an actual or constructive eviction of
Tenant. Landlord shall further have not obligation to protect or preserve any
apparatus, equipment or device installed by Tenant in the Premises, including
without limitation by providing additional or after-hours heating or air
conditioning. Landlord shall be entitled to cooperate voluntarily and in a
reasonable manner with the efforts of national, state or local governmental
agencies or utility suppliers in reducing energy or other resource consumption.
The obligation to make services available hereunder shall be subject to the
limitations of any such voluntary, reasonable program. In addition, Landlord
reserves the right to change the supplier or provider of any such utility or
service from time to time. Tenant shall have no right to contract with or
otherwise obtain any electrical or other such service for or with respect to the
Premises or Tenant's operations therein from any supplier or provider of
such service. Tenant shall cooperate with Landlord and any supplier or provider
of such services designated by Landlord from time to time to facilitate the
delivery of such services to Tenant at the Premises and to the Building and
Project, including without limitation allowing Landlord and Landlord's suppliers
or providers, and their respective agents and contractors, reasonable access to
the Premises for the purpose of installing, maintaining, repairing, replacing or
upgrading such service or any equipment or machinery associated therewith. The
                                                                           ---
rent for a pro-rata portion of the premises obviously and directly affected by
------------------------------------------------------------------------------
an occurrence or event that is the Landlord's responsibility for maintenance,
----------------------------------------------------------------------------
for five days or greater with a written notice provided to Landlord, will be
----------------------------------------------------------------------------
abated beginning the sixth day until remedied.
---------------------------------------------

                                      10
<PAGE>

C.   Tenant shall pay, upon demand, for all utilities furnished to the Premises,
or if not separately billed to or metered to Tenant, Tenant's Proportionate
Share of all charges jointly serving the Project in accordance with Paragraph 7.
All sums payable under this Paragraph 15 shall constitute Additional Rent
hereunder.

                              16.  SUBORDINATION

Without the necessity of any additional document being executed by Tenant for
the purpose of effecting a subordination, this Lease shall be and is hereby
declared to be subject and subordinate at all times to: (a) all ground leases or
underlying leases which may now exist or hereafter be executed affecting the
Premises and/or the land upon which the Premises and Project are situated, or
both; and (b) any mortgage or deed of trust which may now exist or be placed
upon the Building, the Project and/or the land upon which the Premises or the
Project are situated, or said ground leases or underlying leases, or Landlord's
interest or estate in any of said items which is specified as security.
Notwithstanding the foregoing, Landlord shall have the right to subordinate or
cause to be subordinated any such ground leases or underlying leases or any such
liens to this lease. If any ground lease or underlying lease terminates for any
reason or any mortgage or deed of trust is foreclosed or a conveyance in lieu of
foreclosure is made for any reason, Tenant shall, notwithstanding any
subordination, attornment to and become the Tenant of the successor in interest
to Landlord provided that Tenant shall not be disturbed in its possession under
this Lease by such successor in interest so long as Tenant is not in default
under this Lease. Within ten (10) business days after request by Landlord,
                                  --------
Tenant shall execute and deliver any additional documents evidencing Tenant's
attornment or the subordination of this Lease with respect to any such ground
leases or underlying leases or any such mortgage or deed of trust, in the form
requested by Landlord or by any ground landlord, mortgagee, or beneficiary under
a deed of trust, subject to such nondisturbance requirement. If requested in
writing by Tenant, Landlord shall use commercially reasonable efforts to obtain
a subordination, nondisturbance and attornment agreement for the benefit of
Tenant reflecting the foregoing from any ground landlord, mortgagee or
beneficiary, at Tenant's expense, subject to such other terms and conditions as
the ground landlord, mortgagee or beneficiary may require.

                           17.  FINANCIAL STATEMENTS

Landlord will be provided with full and complete financial statements
representing recent reports for the entity signing this lease.

                           18.  ESTOPPEL CERTIFICATE

Tenant agrees from time to time, within ten (10) business 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, that this Least
has not been modified (or stating all modifications, written or oral, to this
Lease), the date to which Rent has been paid, the unexpired portion of this
Lease, that them are no current defaults by Landlord or Tenant under this Lease
(or specifying any such defaults), that the leasehold estate granted by this
Lease is the sole interest of Tenant in the Premises and/or the land at which
the Premises are situated, and such other matters pertaining to this Lease as
may be reasonably requested by Landlord or any mortgagee, beneficiary, purchaser
or prospective purchaser of the Building or Project or any may be relied upon by
any mortgagee, beneficiary, purchaser or prospective purchaser of the Building
or Project or any interest therein. Landlord and Tenant intend that any
statement delivered pursuant to this Paragraph may be relied upon by any
mortagee, beneficiary, purchaser or prospective purchaser of the Building or
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 thus Lease, and shall be an event of default
(without any curt period that might be provided under Paragraph 26.A(3) of this
Lease) if Tenant fails to fully comply or makes any material misstatement in any
such certificate.

                            19.  SECURITY DEPOSIT

Tenant agrees to deposit with Landlord upon execution of this Lease, a security
deposit as stated in the Basic Lease Information (the "Security Deposit"), which
sum shall be held and owned by Landlord, without obligation to pay interest, as
security for the performance of Tenant's covenants and obligations under this
Lease. The Security 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 by law, use such fund as a
credit to the extent necessary to credit against any arrears of Rent or other
payments due to Landlord hereunder, and any other damage, injury, expense or
liability caused by such event of fault, 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 Tenant's
obligations under this Lease have been fulfilled, reduced by such amounts as may
be required by Landlord to remedy defaults on the part of Tenant in the payment
of Rent or other obligations of Tenant under this Lease, to repair damage to the
Premises, Building or Project caused by Tenant or any Tenant's Parties and to
clean the Premises. Landlord may use and commingle the Security Deposit with
other funds of Landlord.

                     20.  LIMITATION OF TENANT'S REMEDIES

The obligations and liability of Landlord to Tenant for any default by Landlord
under the terms of this Lease are not personal obligations of Landlord or of the
individual or other partners of Landlord or its or their partners, directors,
officers, or shareholders, and Tenant agrees to look solely to Landlord's
interest in the Project for the recovery of any amount from Landlord, and shall
not look to other assets of Landlord nor seek recourse against the assets of the
individual or other partners of Landlord or its or their partners, directors,
officers or shareholders. 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. Under no circumstances shall Tenant have the
right to offset against or recoup Rent or other payments due and to become due
to Landlord, hereunder except as expressly provided in Paragraph 23.B below,
which Rent and other payments shall be absolutely due and payable hereunder in
accordance with the terms hereof.

                        21.  ASSIGNMENT AND SUBLETTING

A.   (1)       General. This Lease has been negotiated to be and is granted as
--   an accommodation to Tenant. Accordingly, this Lease is personal to Tenant,
     and Tenant's rights granted hereunder do not include the right to assign
     this Lease or sublease the Premises, or to receive any excess, either in
     installments or lump sum, over the Rent which is expressly reserved by
     Landlord as hereinafter provided, except as otherwise expressly hereinafter
     provided. Tenant shall not assign or pledge this Lease or sublet the
     Premises or any part thereof, whether voluntarily or by operation of law,
     or permit the use or occupancy of the Premises or any part thereof by
     anyone other than Tenant, or suffer or permit any such assignment, pledge,
     subleasing or occupancy, without Landlord's prior written consent except
     as provided herein. If Tenant desires to assign this Lease or sublet any or
     all of the Premises, Tenant shall give Landlord written notice (the
     "Transfer Notice") at least thirty (30) days prior to the anticipated
                                 -----------
     effective date of the proposed assignment or sublease, which shall contain
     all of the information reasonably requested by Landlord to address
     Landlord's decision criteria specified hereinafter. Landlord shall then
     have a period of fifteen (15) days following receipt of the Transfer
                      ------------
     Notice to notify Tenant in writing that Landlord elects either: (i) to
     terminate this Lease as to the space so affected as of the date so
     requested by Tenant; or (ii) to consent to the proposed assignment or
     sublease,

                                      11
<PAGE>

     subject, however, to Landlord's prior written consent of the proposed
     assignee or subtenant and of any related documents or agreements associated
     with the assignment or sublease. If Landlord should fail to notify Tenant
     in writing of such election within said period, Landlord shall be deemed to
     have waived option (i) above, but written consent by Landlord of the
     proposed assignee or subtenant shall still be required. Landlord's consent
     to a proposed assignment or sublease shall not be unreasonably withheld.
     Consent to any assignment or subletting shall not constitute consent to any
     ---------------------------------------------------------------------------
     subsequent transaction to which this paragraph 21 applies. A transfer of
     ---------------------------------------------------------------------------
     this lease to an affiliate that owns more than or is owned more than 51% by
     ---------------------------------------------------------------------------
     the Tenant will not require approval as described above, but will require
     ---------------------------------------------------------------------------
     written notice prior to a thirty (30) day period before the transfer.
     --------------------------------------------------------------------

(2)  Conditions of Landlord's Consent. Without limiting the other instances in
     which it may be reasonable for Landlord to withhold Landlord's consent to
     an assignment or subletting, Landlord and Tenant acknowledge that it shall
     be reasonable for Landlord to withhold Landlord's consent in the following
     instances: if the proposed assignee does not agree to be bound by and
     assume the obligations of Tenant under this Lease in form and substance
     satisfactory to Landlord; the use of the Premises by such proposed assignee
     or subtenant would not be a Permitted Use or would violate any exclusivity
     or other arrangement which Landlord has with any other tenant or occupant
     or any Regulation or would increase the Occupancy Density or Parking
     Density of the Building or Project, or would otherwise result in an
     undesirable tenant mix for the Project as determined by Landlord; the
     proposed assignee or subtenant is not of sound financial condition as
     determined by Landlord in Landlord's sole discretion; the proposed assignee
     or subtenant is a governmental agency; the proposed assignee or subtenant
     does not have a good reputation as a tenant of property or a good business
     reputation; the proposed assignee or subtenant is a person with whom
     Landlord is negotiating to lease space in the Project or is a present
     tenant of the Project; the assignment or subletting would entail any
     Alterations which would lessen the value of the leasehold improvements in
     the Premises or use of any Hazardous Materials or other noxious use or use
     which may disturb other tenants of the Project. Failure by or refusal of
     Landlord to consent to a proposed assignee or subtenant shall not cause a
     termination of this Lease. Upon a termination under Paragraph 2l.A.(1)(i),
     Landlord may lease the Premises to any party, including parties with whom
     Tenant has negotiated an assignment or sublease, without incurring any
     liability to Tenant. At the option of Landlord, a surrender and termination
     of this Lease shall operate as an assignment to Landlord of some or all
     subleases or subtenancies. Landlord shall exercise this option by giving
     notice of that assignment to such subtenants on or before the effective
     date of the surrender and termination. In connection with each request for
     assignment or subletting, Tenant shall pay to Landlord Landlord's standard
     fee for approving such requests, as well as all costs reasonably incurred
                                                           ----------
     by Landlord or any mortgagee or ground lessor in approving each such
     request and effecting any such transfer, including, without limitation,
     reasonable attorneys' fees. Landlord costs will not exceed $500.00 if
                                 -----------------------------------------
     complete and accurate information is provided within the one submission of
     --------------------------------------------------------------------------
     all documents.
     -------------

B.   Bonus Rent. Any Rent or other consideration realized by Tenant under any
such sublease or assignment in excess of the Rent payable hereunder, after
amortization of a reasonable brokerage commission incurred by Tenant, shall be
divided and paid, fifty percent (50%) to Tenant, fifty percent (50%)
                  -----          ---             -----          ---
to Landlord. In any subletting or assignment undertaken by Tenant, Tenant shall
diligently seek to obtain the maximum rental amount available in the marketplace
for comparable space available for primary leasing.

C.   Corporation. 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) resulting 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 Lease.

D.   Unincorporated Entity. If Tenant is a partnership, joint venture,
unincorporated limited liability company 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,
operation of law or other disposition, so as to result in a change in the
present control of said entity and/or of the underlying beneficial interests 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 Lease.

E.   Liability. No assignment or subletting by Tenant, permitted or otherwise,
shall relieve Tenant of any obligation under this Lease or alter the primary
liability of the Tenant named herein for the payment of Rent or for the
performance of any other obligations to be performed by Tenant, including
obligations contained in Paragraph 25 with respect to any assignee or subtenant.
Landlord may collect rent or other amounts or any portion thereof from any
assignee, subtenant, or other occupant of the Premises, permitted or otherwise,
and apply the net rent collected to the Rent payable hereunder, but no such
collection shall be deemed to be a waiver of this Paragraph 21, or the
acceptance of the assignee, subtenant or occupant as tenant, or a release of
Tenant from the further performance by Tenant of the obligations of Tenant under
this Lease. Any assignment or subletting which conflicts with the provisions
hereof shall be void.
                               22.  AUTHORITY

Landlord represents and warrants that it has full right and authority to enter
into this Lease and to perform all of Landlord's obligations hereunder and that
all persons signing this Lease on its behalf are authorized to do. Tenant and
the person or persons, if any, signing on behalf of Tenant, jointly and
severally represent and warrant that Tenant has full right and authority to
enter into this Lease, and to perform all of Tenant's obligations hereunder, and
that all persons signing this Lease on its behalf are authorized to do so.

                               23.  CONDEMNATION

A.   Condemnation Resulting in Termination. If the whole or any substantial part
of the Premises should be taken or condemned for any public use under any
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, either party shall have the right to terminate this Lease
at its option. If any material portion of the Building or Project is taken or
condemned for any public use under any Regulation, or by right of eminent
domain, or by private purchase in lieu thereof, Landlord may terminate this
Lease at its option. In either of such events, the Rent shall be abated during
the unexpired portion of this Lease, effective when the physical taking of said
Premises shall have occurred.

B.   Condemnation Not Resulting in Termination. If a portion of the Project of
which the Premises are a part should be taken or condemned for any public use
under any Regulation, or by right of eminent domain, or by private purchase in
lieu thereof, and the taking prevents or materially interferes with the
Permitted Use of the Premises, and this Lease is not terminated as provided in
Paragraph 23.A. above, the Rent payable hereunder during the unexpired portion
of this Lease shall be reduced, beginning on the date when the physical taking
shall occurred, to such amount as may be fair and reasonable under all of the
circumstances, but only after giving Landlord credit for all sums received or to
be received by Tenant by the condemning authority. Notwithstanding anything to
the contrary contained in this Paragraph, if the temporary use or occupancy of
any part of the Premises shall be taken or appropriated under power of eminent
domain during the Term, this Lease shall be and remain unaffected by such taking
or appropriation and Tenant shall continue to pay in full all Rent payable
hereunder by Tenant during the Term; in the event of any such temporary
appropriation or taking, Tenant shall be entitled to receive that portion of any
award which represents compensation for the use of or occupancy of the Premises
during the Term, and Landlord shall be entitled to receive that portion of any
award which represents the cost of restoration of the Premises and the use and
occupancy or the Premises.

                                      12
<PAGE>

C.   Award. Landlord shall be entitled to (and Tenant shall assign to Landlord)
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 any sums paid by
virtue of such proceedings, whether or not attributable to the value of any
unexpired portion of this Lease, except as expressly provided in this Lease.
Notwithstanding the foregoing, any compensation specifically and separately
awarded Tenant for Tenant's personal property and moving costs, shall be and
remain the property of Tenant.

D.   Waiver of CCP(S)1265.130 Each party waives the provisions of California
Civil Code Procedure Section 1265.130 allowing either party to petition the
superior court to terminate this Lease as a result of a partial taking.

                             24.  CASUALTY DAMAGE

A.   General. If the Premises or Building should be damaged or destroyed by
fire, tornado, or other casualty (collectively, "Casualty"), Tenant shall give
immediate written notice thereof to Landlord. Within thirty (30) days after
Landlord's receipt of such notice, Landlord shall notify Tenant whether in
Landlord's estimation material restoration of the Premises can reasonably be
made within ninety (90) days from the date of such notice and receipt of
            -----------
required permits for such restoration. Landlord's determination shall be binding
on Tenant.

B.   Within 180 Days. If the Premises or Building should be damaged by
Casualty to such extent that material restoration can in Landlord's estimation
be reasonably completed within ninety (90) days after the date of such notice
                               -----------
and receipt of required permits for such restoration, this Lease shall not
terminate. Provided that insurance proceeds are received by Landlord to fully
repair the damage, Landlord shall proceed to rebuild and repair the Premises in
the manner determined by Landlord, except that Landlord shall not be required to
rebuild, repair or replace any part of the Alterations which may have been
placed 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 abated proportionately, but only
to the extent of rental abatement insurance proceeds received by Landlord during
the time and to the extent the Premises are unfit for occupancy.

C.   Greater than 180 Days. If the Premises or Building should be damaged by
Casualty to such extent that rebuilding or repairs cannot in Landlord's
estimation be reasonably completed within ninety (90) days after the date of
                                          -----------
such notice and receipt of required permits for such rebuilding or repair, then
Landlord shall have the option of either: (1) terminating this Lease effective
upon the date of the occurrence of such damage, in which event the Rent shall be
abated during the unexpired portion of this Lease; or (2) electing to rebuild or
repair the Premises diligently and in the manner determined by Landlord.
Landlord shall notify Tenant of its election within thirty (30) days after
Landlord's receipt of notice of the damage or destruction. Notwithstanding the
above, Landlord shall not be required to rebuild, repair or replace any part of
any Alterations which may have been placed, 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
abated proportionately, but only to the extent of rental abatement insurance
proceeds received by Landlord during the time and to the extent the Premises are
unfit for occupancy.

D.   Tenant's Fault. Notwithstanding anything herein to the contrary, if the
Premises or any other portion of the Building are damaged by Casualty resulting
from the fault, negligence, or breach of this Lease by Tenant or any of Tenant's
Parties, Base Rent and Additional Rent shall not be diminished during the repair
of such damage and Tenant shall be liable to Landlord for the cost and expense
of the repair and restoration of the Building caused thereby to the extent such
cost and expense is not covered by insurance proceeds.

E.   Insurance Proceeds. Notwithstanding anything herein to the contrary, if the
Premises or Building are damaged or destroyed and are not fully covered by the
insurance proceeds received by Landlord or if the 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 in either cast Landlord
shall have the right to terminate this Lease by delivering written notice of
termination to Tenant within thirty (30) days after the date of notice to
Landlord that said damage or destruction is not fully covered by insurance or
such requirement is made by any such holder, as the case may be, whereupon this
Lease shall terminate.

F.   Waiver. This Paragraph 24 shall be Tenant's sole and exclusive remedy in
the event of damage or destruction to the Premises or the Building. As a
material inducement to Landlord entering into this Lease, Tenant hereby waives
any rights it may have under Sections 1932, 1933(4), 1941 or 1942 of the Civil
Code of California with respect to any destruction of the Premises, Landlord's
obligation for tenantability of the Premises and Tenant's right to make repairs
and deduct the expenses of such repairs, or under any similar law, statute or
ordinance now or hereafter in effect.

G.   Tenant's Personal Property. In the event of any damage or destruction of
the Premises or the Building, under no circumstances shall Landlord be required
to repair any injury or damage to, or make any repairs to or replacements of,
Tenant's personal property.

                               25.  HOLDING OVER

Unless Landlord expressly consents in writing to Tenant's holding over, Tenant
shall be unlawfully and illegally in possession of the Premises, whether or not
Landlord accepts any rent from Tenant or any other person while Tenant remains
in possession of the Premises without Landlord's written consent. If Tenant
shall retain possession of the Premises or any portion thereof without
Landlord's consent following the expiration of this Lease or sooner termination
for any reason, then Tenant shall pay to Landlord for each day of such retention
150% the amount of daily rental as of the last month prior to the date of
---
expiration or earlier termination. Tenant shall also indemnify, defend, protect
and hold Landlord harmless from any loss, liability or cost, including
consequential and incidental damages and reasonable attorneys fees, incurred by
Landlord resulting from delay by Tenant in surrendering the Premises, including,
without limitation, any claims made by the succeeding tenant founded on such
delay. Acceptance of Rent by Landlord following expiration or earlier
termination of this Lease, or following demand by Landlord for possession of the
Premises, shall not constitute a renewal of this Lease, and nothing contained in
this Paragraph 25 shall waive Landlord's right of reentry or any other right.
Additionally, if upon expiration or earlier termination of this Lease, or
following demand by Landlord for possession of the Premises, 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 any time required by Landlord to complete such
obligations shall be considered a period of holding over and the terms of this
Paragraph 25 shall apply. The provisions of this Paragraph 25 shall survive
any expiration or earlier termination of this Lease.

                                 26.  DEFAULT

A.   Events of Default. The occurrence of any of the following shall constitute
     an event of default on the part of Tenant:

     (i)      Abandonment. Abandonment or vacation of the Premises for a
     continuous period in excess of five (5) days. Tenant waives any right to
     notice Tenant may have under Section 1951.3 of the Civil Code of the
     State of California, the terms of this Paragraph 26.A. being deemed such
     notice to Tenant as required by said Section 1951.3.

     (2)      Nonpayment of Rent: Failure to pay any installment of Rent or
     any other amount due and payable hereunder within seven (7) business days
                                                       -----------------------
     of the date when said payment is due, as to which time is of the
     --
     essence.

                                      13
<PAGE>

     (3)      Other Obligations. Failure to perform any obligation, agreement or
     covenant under this Lease other than those matters specified in
     subparagraphs (1) and (2) of this Paragraph 26.A., such failure continuing
     for fifteen (15) days after written notice of such failure, as to which
     time is of the essence.

     (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. If under applicable law, the trustee in bankruptcy or Tenant has the
     right to affirm this Lease and continue to perform the obligations 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 or Tenant's leasehold of the Premises,
     if such appointment remains undismissed or undischarged for a period of
     thirty (30) days after the order therefor.
     -----------

     (7)      Attachment. The attachment, execution or other judicial seizure
     of all or substantially all of Tenant's assets or Tenant's leasehold of the
     Premises, if such attachment or other seizure remains undismissed or
     undischarged for a period of thirty (30) days after the levy thereof.
                                  -----------

     (8)      Insolvency. The admission by Tenant in writing of its inability to
     pay its debts as they become due.

B.   Remedies Upon Default.

     (1)      Termination. In the event of the occurrence of any event of
     default, Landlord shall have the right to give a written termination notice
     to Tenant, and on the date specified in such notice, Tenant's right to
     possession shall terminate, and this Lease shall terminate unless on or
     before such date all Rent in arrears and all costs and expenses incurred by
     or on behalf of Landlord hereunder shall have been paid by Tenant and all
     other events of default of this Lease by Tenant at the time existing shall
     have been fully remedied to the satisfaction of Landlord. At any time after
     such termination, Landlord may recover possession of the Premises or any
     part thereof and expel and remove therefrom Tenant and any other person
     occupying the same, including any subtenant or subtenants notwithstanding
     Landlord's consent to any sublease, 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 any reason
     of Tenant's default or of such termination. Landlord hereby reserves the
     right, but shall not have the obligation, to recognize the continued
     possession of any subtenant. The delivery or surrender to Landlord by or on
     behalf of Tenant of keys, entry codes, or other means to bypass security at
     the Premises shall not terminate this Lease.

     (2)      Continuation After Default. Even though an event of default may
     have occurred, this Lease shall continue in effect for so long as Landlord
     does not terminate Tenant's right to possession under Paragraph 26.B.(l)
     hereof, and Landlord may enforce all of Landlord's rights and remedies
     under this Lease and at law or in equity, including 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 under application of
     Landlord to protect Landlord's interest under this Lease or other entry by
     Landlord upon the Premises shall not constitute an election to terminate
     Tenant's right to possession.

C.   Damages After Default. Should Landlord terminate this Lease pursuant to the
provisions of Paragraph 26.B.(1) hereof, Landlord shall have the rights and
remedies of a Landlord provided by Section 1951.2 of the Civil Code of the State
of California, or any successor code sections. Upon such termination, in
addition to any other rights and remedies to which Landlord may be entitled
under applicable law or at equity, 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 and other amounts that would have
been earned after the date of termination until the time of award exceeds the
amount of such Rent loss that Tenant proves could have been reasonably avoided;
(3) the worth at the time of award of the amount by which the unpaid Rent and
other amounts 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 and court costs necessary to compensate Landlord for all
detriment proximately caused by Tenant's failure to perform Tenant's obligations
under this Lease or which, in the ordinary course of things, would be likely to
result therefrom. The "worth at the time of award" as used in (1) and (2) above
shall be computed at the Applicable Interest Rate (defined below). The "worth at
the time of award" as used 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 award plus one percent (1%). If this Lease provides for any
periods during the Term during which Tenant is not required to pay Base Rent or
if Tenant otherwise receives a Rent concession, then upon the occurrence of an
event of default, Tenant shall owe to Landlord the full amount of such Base Rent
or value of such Rent concession, plus interest at the Applicable Interest Rate,
calculated from the date that such Base Rent or Rent concession would have been
payable.

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 and received by Landlord on
or before the first day of each calendar month, an amount equal to five percent
(5%) 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 ????, the parties agreeing
that Landlord's damage by virtue of such delinquencies would be extremely
difficult and impracticable to compute and the amount stated herein represents
a reasonable estimate thereof. Any waiver by Landlord of any late charges or
failure to claim the same shall not constitute a waiver of other late charges or
any other remedies available to Landlord.

E.   Interest. Interest shall accrue on all sums not paid when due hereunder at
the lesser of twelve percent (12%) per annum or the maximum interest rate
              ------         -----
allowed by law ("Applicable Interest Rate") from the due date until paid.

F.   Remedies Cumulative. All rights, privileges and election or remedies of the
parties are cumulative and not alternative, to the extent permitted by law and
except as otherwise provided herein.

                                  27.  LIENS

Tenant shall at all times keep the Premises and the Project free from liens
arising out of or related to work or services performed, materials or supplies
furnished or obligations incurred by or on behalf of Tenant or in connection
with work made, suffered or done by or on behalf of Tenant in or on the Premises
or Project. If Tenant shall not, within ten (10) days following the imposition
of any such lien, cause the

                                      14
<PAGE>

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
Landlord 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 therefor shall be payable to Landlord by Tenant on demand
with interest at the Applicable Interest Rate as Additional Rent. 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 therein, 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 liens to permit Landlord to post
and record a timely notice of non-responsibility, as Landlord may elect to
proceed or as the law may from time to time provide, for which purpose, if
Landlord shall so determine, Landlord may enter the Premises. Tenant shall not
remove any such notice posted by Landlord without Landlord's consent, and in any
event not before completion of the work which could lawfully give rise to a
claim for mechanics' or materialmen's liens.

                          29.  TRANSFERS BY LANDLORD

In the event of a sale or conveyance by Landlord of the Building or a
foreclosure by any creditor of Landlord, the same shall operate to release
Landlord from any liability upon any of the covenants or conditions, express or
implied, herein contained in favor of Tenant, to the extent required to be
performed after the passing of title to Landlord's successor-in-interest. In
such event, Tenant agrees to look solely to the responsibility of the successor-
in-interest of Landlord under this Lease with respect to the performance of the
covenants and duties of "Landlord" to be performed after the passing of title to
Landlord's successor-in-interest. This Lease shall not be affected by any such
sale and Tenant agrees to attorn to the purchaser or assignee. Landlord's
successor(s)-in-interest shall not have liability to Tenant with respect to the
failure to perform any of the obligations of "Landlord," to the extent required
to be performed prior to the date such successor(s)-in-interest became the owner
of the Building.

             30.  RIGHT OF LANDLORD TO PERFORM TENANT'S COVENANTS

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 Base Rent, required to be paid by Tenant hereunder or shall fail to
perform any other act on Tenant's part to be performed hereunder, including
Tenant's obligations under Paragraph 11 hereof, and such failure shall continue
for fifteen (15) days after notice thereof by Landlord, in addition to the other
rights and remedies of Landlord, Landlord may make any such payment and perform
any such act on Tenant's part. In the case of an emergency, no prior
notification by Landlord shall be required. Landlord may take such actions
without any obligation and without releasing Tenant from any of Tenant's
obligations. All sums so paid by Landlord and all incidental costs incurred by
Landlord and interest thereon at the Applicable Interest Rate, from the date of
payment by Landlord, shall bc paid to Landlord on demand as Additional Rent.

                                  31.  WAIVER

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, or constitute a course of dealing contrary to the
expressed terms of this Lease. 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 by 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 decrease the right of Landlord to insist
thereafter upon strict performance by Tenant. Waiver by Landlord of any term,
covenant or condition contained in this Lease may only be made by a written
document signed by Landlord, based upon full knowledge of the circumstances.

                                  32.   NOTICES

Each provision of this Lease or of any applicable governmental laws, ordinances,
regulations and other requirements with reference to 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.   Rent. All Rent and other payments required to be made by Tenant to Landlord
hereunder shall be payable to Landlord at Landlord's Remittance 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.   Other. 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 either personally delivered, sent by commercial overnight courier, mailed,
certified or registered, postage prepaid or sent by facsimile with confirmed
receipt (and with an original sent by commercial overnight courier), and in each
case addressed to the party to be notified at the Notice Address for such party
as 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. Notices shall be deemed served upon receipt or
refusal 13 accept delivery. Tenant appoints as its agent to receive the service
of all default notices and notice of commencement of unlawful detainer
proceedings the person in charge of or apparently in charge of occupying the
Premises at the time, and, if there is no such person, then such service may be
made by attaching the same on the main entrance of the Premises.

C.   Required Notices. Tenant shill immediately notify Landlord in writing of
any notice of a violation or a potential or alleged violation of any Regulation
that relates to the Premises or the Project, or of any inquiry, investigation,
enforcement or other action that is instituted or threatened by any governmental
or regulatory agency against Tenant or any other occupant of the Premises, or
any claim that is instituted or threatened by any third party that relates to
the Premises or the Project.
                                  15
<PAGE>

                             33.  ATTORNEYS' FEES

If Landlord 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
possession of the Premises in the hands of an attorney, Tenant shall pay to
Landlord, upon demand, Landlord's reasonable attorneys' fees and court costs,
whether incurred without trial, at trial, appeal or review. In any action which
Landlord or Tenant brings to enforce its respective rights hereunder, the
unsuccessful party shall pay all costs incurred by the prevailing party
including reasonable attorneys' fees, to be fixed by the court, and said costs
and attorneys' fees shall be a part of the judgment in said action. (This is a
                                                                    ----------
mutual right)
-------------

                          34.  SUCCESSORS AND ASSIGNS

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 is approved by Landlord as
provided hereunder, Tenant's assigns.

                             35.  FORCE MAJEURE

If performance by a party of any portion of this Lease is made impossible by any
prevention, delay, or stoppage caused by strikes, lockouts, labor disputes, acts
of God, inability to obtain services, labor, or materials or reasonable
substitutes for those items, government actions, civil commotions, fire or other
casualty, or other causes beyond the reasonable control of the party obligated
to perform, performance by that party for a period equal to the period of that
prevention, delay, or stoppage is excused. Tenant's obligation to pay Rent,
however, is not excused by this Paragraph 35.

                          36.  SURRENDER OF PREMISES

Tenant shall, upon expiration or sooner termination of this Lease, surrender the
Premises to Landlord in the same condition as existed on the date Tenant
originally took possession thereof, including, but not limited to, all interior
walls cleaned, all holes in walls repaired, all carpets shampooed
and cleaned, and all floors cleaned, waxed, and free of any Tenant-introduced
marking or painting, all to the reasonable satisfaction of Landlord. Tenant
shall remove all of its debris from the Project. At or before the time of
surrender, Tenant shall comply with the terms of Paragraph 12.A. hereof with
respect to Alterations to the Premises and all other matters addressed in such
Paragraph. If the Premises are not so surrendered at the expiration or sooner
termination of this Lease, the provisions of Paragraph 25 hereof shall apply.
All keys to the Premises or any part thereof shall bc surrendered to Landlord
upon expiration or sooner termination of the Term. 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, but nothing contained herein shall be construed as an extension of
the Term or as a consent by Landlord to any holding over by Tenant. 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. Any delay caused by Tenant's failure
to carry out its obligations under this Paragraph 36 beyond the term hereof,
shall constitute unlawful and illegal possession of Premises under Paragraph 25
hereof.
                                  37. PARKING

     So long as Tenant is occupying the Premises, Tenant and Tenant's Parties
shall have the right to use up to the number of parking spaces, if any,
specified in the Basic Lease Information on an unreserved, nonexclusive, first
come, first served basis, for passenger-size automobiles, in the parking areas
in the Project designated from time to time by Landlord for use in common by
tenants of the Building.

     Tenant may request additional parking spaces from time to time and if
Landlord in its sole discretion agrees to make such additional spaces
available for use by Tenant, such spaces shall be provided on a month-to-month
unreserved and nonexclusive basis (unless otherwise agreed in writing by
Landlord), and subject to such parking charges as Landlord shall determine, and
shall otherwise be subject to such terms and conditions as Landlord may require.

     Tenant shall at all times comply and shall cause all Tenant's Parties and
visitors to comply with all Regulations and any rules and regulations
established from time to time by Landlord relating to parking at the Project,
including any keycard, sticker or other identification or entrance system, and
hours of operation, as applicable.

     Landlord shall have no liability for any damage to property or other items
located in the parking areas of the Project, nor for any personal injuries or
death arising out of the use of parking areas in the Project by Tenant or any
Tenant's Parties. Without limiting the foregoing, if Landlord arranges for the
parking areas to be operated by an independent contractor not affiliated with
Landlord, Tenant acknowledges that Landlord shall have no liability for claims
arising through acts or omissions of such independent contractor. In all
events, Tenant agrees to look first to its insurance carrier and to require that
Tenant's Parties look first to their respective insurance carriers for payment
of any losses sustained in connection with any use of the parking areas.

     Landlord reserves the right to assign specific spaces, and to reserve
spaces for visitors, small cars, disabled persons or for other tenants or
guests, and Tenant shall not park and shall not allow Tenant's Parties to park
in any such assigned or reserved spaces. Tenant may validate visitor parking by
such method as Landlord may approve, at the validation rate from time to time
generally applicable to visitor parking. Landlord also reserves the right to
alter, modify, relocate or close all or any portion of the parking areas in
order to make repairs or perform maintenance service, or to restripe or renovate
the parking areas, or if required by casualty, condemnation, act of God,
Regulations or for any other reason deemed reasonable by Landlord.

     Tenant shall pay to Landlord (or Landlord's parking contractor, if so
directed in writing by Landlord), as Additional Rent hereunder, the monthly
charges established from time to time by Landlord for parking in such parking
areas (which shall initially bc the charge specified in the Basic Lease
Information, as applicable). Such parking charges shall be payable in advance
with Tenant's payment of Basic Rent. No deductions from the monthly parking
charge shall be made for days on which the Tenant does not use any of the
parking spaces entitled to be used by Tenant.

                              38.  MISCELLANEOUS

A.   General. 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 respective successors, executors,
administrators and permitted assigns, according to the context hereof.

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

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

D.   Entire Agreement. This Lease, together with its Exhibits, addenda and
attachments and the Basic Lease information, contains all the agreements of the
parties hereto and supercedes any previous negotiations. There have been no
representations made by the

                                      16
<PAGE>

Landlord or understandings made between the parties other than those set forth
in this Lease and its Exhibits, addenda and attachments and the Basic Lease
Information.

E.        Modification. This Lease may not be modified expect by a written
instrument signed by the parties hereto. Tenant accepts the area of the Premises
as specified in the Basic Lease Information as the approximate area of the
Premises for all purposes under this Lease, and acknowledges and agrees that no
other definition of the area (rentable, usable or otherwise) of the Premises
shall apply. Tenant shall in no event be entitled to a recalculation of the
square footage of the Premises, rentable, usable or otherwise, and no
recalculation, if made, irrespective of its purpose, shall reduce Tenant's
obligations under this Lease in any manner, including without limitation the
amount of Base Rent payable by Tenant or Tenant's Proportionate Share of the
Building and of the Project.

F.        Severability. 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.

G.        Recordation. Tenant shall not record this Lease or a short form
memorandum hereof.

H.        Examination of Lease. Submission of this Lease to Tenant does not
constitute an option or offer to lease and this Lease is not effective otherwise
until execution and delivery by both Landlord and Tenant.

I.        Accord and Satisfaction. No payment by Tenant of a lesser amount than
the total Rent due nor any endorsement on any cheek or letter accompanying any
cheek or payment of Rent shall be deemed an accord and satisfaction of full
payment of Rent, and Landlord may accept such payment without prejudice to
Landlord's right to recover the balance of such Rent or to pursue other
remedics. All offers by or on behalf of Tenant of accord and satisfaction are
hereby rejected in advance.

J.        Easements. Landlord may grant easements on the Project and dedicate
for public use portions of the Project without Tenant's consent; provided that
no such grant or dedication shall materially interfere with Tenant's Permitted
Use of the Premises. Upon Landlord's request, Tenant shall execute, acknowledge
and deliver to Landlord documents, instruments, maps and plats necessary to
effectuate Tenant's covenants hereunder.

K.        Drafting and Determination Presumption. The parties acknowledge that
this Lease has been agreed to by both the parties, that both Landlord and Tenant
have consulted with attorneys with respect to the terms of this Lease and that
no presumption shall be created against Landlord because Landlord drafted this
Lease. Except as otherwise specifically set forth in this Lease, with respect to
any consent, determination or estimation of Landlord required or allowed in this
Lease or requested of Landlord, Landlord's consent, determination or estimation
shall be given or made solely by Landlord in Landlord's good faith opinion,
whether or not objectively reasonable. If Landlord fails to respond to any
request for its consent within the time period, if any, specified in this Lease,
Landlord shall be deemed to have disapproved such request.

L.        Exhibits. The Basic Lease Information, and the Exhibits, addenda and
attachments attached hereto are hereby incorporated herein by this reference and
made a part of this Lease as though fully set forth herein.

M.        No Light, Air or View Easement. Any diminution or shutting off of
light, air or view by any structure which may be crected on lands adjacent to or
in the vicinity of the Building shall in no way affect this Lease or impose any
liability on Landlord.

N.        No Third Party Benefit. This Lease is a contract between Landlord and
Tenant and nothing herein is intended to create any third party benefit.

O.        Quiet Enjoyment. Upon payment by Tenant of the Rent, and upon the
observance and performance of all of the other covenants, terms and conditions
on Tenant's part to be observed and performed, Tenant shall peaceably and
quietly hold and enjoy the Premises for the term hereby demised without
hindrance or interruption by Landlord or any other person or persons lawfully or
equitably claiming by, through or under Landlord, subject, nevertheless, to all
of the other terms and conditions of this Lease. Subject to Landlord's
obligation to make reasonable efforts to enforce all applicable rules and
regulations, Landlord shall not be liable for any hindrance, interruption,
interference or disturbance by other tenants or third persons, nor shall Tenant
be released from any obligations under this Lease because of such hindrance,
interruption, interference or disturbance.

P.        Counterparts. This Lease may be executed in any number of
counterparts, each of which shall be deemed an original.

Q.        Multiple Parties. If more than one person or entity is named herein as
Tenant, such multiple parties shall have joint and several responsibility to
comply with the terms of this Lease.

R.        Prorations. Any Rent or other amounts payable to Landlord by Tenant
hereunder for any fractional month shall be prorated based on a month of 30
days. As used herein, the term "fiscal year" shall mean the calendar year or
such other fiscal year as Landlord may deem appropriate.

                          39.  ADDITIONAL PROVISIONS

A)   Tenant, at its sole cost and expense and in compliance with all
     regulations and safeguards and assuming all liability for such use, shall
     be allowed to use one (at a time) compressed nitrogen cylinder in the
     facility for research and development purposes. In Addition, tenant shall
     be allowed to remove the vinyl tile in the two large rooms (see Exhibit D)
     at its sole cost and expense and will immediately install a custom ESD
     tile floor in white vinyl, at its sole cost and expense. With Landlord's
     prior written approval of colors, Tenant will be allowed to paint the
     walls at its sole cost and expense.

B)   No other provisions.

                            40.  JURY TRIAL WAIVER

EACH PARTY HERETO (WHICH INCLUDES ANY ASSIGNEE, SUCCESSOR HEIR OR PERSONAL
REPRESENTATIVE OF A PARTY) SHALL NOT SEEK A JURY TRIAL, HEREBY WAIVES TRIAL BY
JURY, AND HEREBY FURTHER WAlVES ANY OBJECTION TO VENUE IN THE COUNTY IN WHICH
THE BUILDING IS LOCATED, AND AGREES AND CONSENTS TO PERSONAL JURISDICTION OF THE
COURTS OF THE STATE IN WHICH THE PROPERTY IS LOCATED, IN ANY ACTION OR

                                      17
<PAGE>

PROCEEDING OR COUNTERCLAIM BROUGHT BY ANY PARTY HERETO AGAINST THE OTHER ON ANY
MATTER WHATSOEVER ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS LEASE, THE
RELATIONSHIP OF LANDLORD AND TENANT, TENANT'S USE OR OCCUPANCY OF THE PREMISES,
OR ANY CLAIM OF INJURY OR DAMAGE, OR THE ENFORCEMENT OF ANY REMEDY UNDER ANY
STATUTE, EMERGENCY OR OTHERWISE, WHETHER ANY OF THE FOREGOING IS BASED ON THIS
LEASE OR ON TORT LAW. EACH PARTY REPRESENTS THAT IT HAS HAD THE OPPORTUNITY TO
CONSULT WITH LEGAL COUNSEL CONCERNING THE EFFECT OF THIS PARAGRAPH 40. THE
PROVISIONS OF THIS PARAGRAPH 40 SHALL SURVIVE THE EXPIRATION OR EARLIER
TERMINATION OF THIS LEASE.

IS WITNESS WHEREOF, the parties hereto have executed this Lease as of the day
and the year first above written.

                             LANDLORD

                             Spieker Properties, L.P.,
                             a California limited partnership

                             By: Spieker Properties, Inc.,
                                 a Maryland corporation,
                                 its general partner

                                 By: /s/ Jeffrey K. Nickell
                                     -----------------------------------------
                                     Jeffrey K. Nickell
                                     Its: Vice President

                             Date: 3/22/99

                             TENANT

                             Multilink Technology Corporation
                             a California Corporation

                             By: /s/ Richard Nottenberg
                                 ---------------------------------------------
                                 Richard Nottenberg
                                 Its: President

                             Date:

<PAGE>

                                  EXHIBIT A
                             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. No tenant, and no employees or invitees of
    any tenant shall move any common area furniture without Landlord's consent.

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.  Landlord reserves the right to exclude from the Building and the Project,
    between the hours of 6 p.m. and 8 am. and at all hours on Saturdays, Sundays
    and legal holidays, all persons who are not tenants or their accompanied
    guests in the Building. 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.  All cleaning and janitorial services for the Building and the Premises shall
    be provided exclusively through Landlord. Except with the written consent of
    Landlord, no person or persons other than those approved by Landlord shall
    be permitted to enter the Building for the purpose of cleaning the same.
    Tenant shall not cause any unnecessary labor by reason of Tenant's
    carelessness or indifference in the preservation of good order and
    cleanliness of its Premises. Landlord shall in no way be responsible to
    Tenant for any loss of property on the Premises, however occurring, or for
    any damage done to Tenant's property by the janitor or any other employee or
    any other person.

7.  Tenant shall see that all doors of its Premises are closed and securely
    locked and must observe strict care and caution that all water faucets or
    water apparatus, coffee pots or other heat-generating devices are entirely
    shut off before Tenant or its employees leave the Premises, and that all
    utilities shall likewise be carefully shut off, so as to prevent waste or
    damage. Tenant shall be responsible for any damage or injuries sustained by
    other tenants or occupants of the Building or Project or by Landlord for
    noncompliance with this rule. On multiple-tenancy floors, all tenants shall
    keep the door or doors to the Building corridors closed at all times except
    for ingress and egress.

8.  Tenant shall not use any method of heating or air-conditioning other than
    that supplied by Landlord. As more specifically provided in Tenant's lease
    of the Premises, Tenant shall not waste electricity, water or air-
    conditioning and agrees to cooperate fully with Landlord to assure the most
    effective operation of the Building's heating and air-conditioning, and
    shall refrain from attempting to adjust any controls other than room
    thermostats installed for Tenant's use.

9.  Landlord will furnish Tenant free of charge with two keys to each door in
    the Premises. Landlord may make a reasonable charge for any additional keys
    and Tenant shall not make or have made additional keys. 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 cast 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.

1O. 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.

                              Exhibit A - Page 1
<PAGE>

11.  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.

12.  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.

13.  No cooking shall be done or permitted by any tenant on the Premises, except
     that use by the tenant of Underwriters' Laboratory (UL) approved equipment,
     refrigerators and microwave ovens may be used in the Premises for the
     preparation of coffee, tea, hot chocolate and similar beverages, storing
     and heating food for tenants and their employees shall be permitted. All
     uses must be in accordance with all applicable federal, state and city
     laws, codes, ordinances, rules and regulation and the Lease.

14.  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, nor shall the Premises be
     used for the storage of merchandise or for manufacturing of any kind, 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.

15.  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.

16.  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.

17.  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.

18.  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
     without Landlord's consent. Tenant may install nails and screws in areas of
     the Premises that have been identified for those purposes to Landlord by
     Tenant at the time those walls or partitions were installed in the
     Premises. 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.

19.  No furniture, freight, equipment, materials, supplies, packages,
     merchandise or other property will be received in the Building or carried
     up or down the elevators except between such hours and in such elevators as
     shall be designated by Landlord.

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. Landlord shall have the right to prescribe the weight, size
     and position of all safes, furniture or other heavy equipment brought into
     the Building. Safes or other heavy objects shall, if considered necessary
     by Landlord, stand on wood strips of such thickness as determined by
     Landlord to be necessary to properly distribute the weight thereof.
     Landlord will not be responsible for loss of or damage to any such safe,
     equipment or property from any cause, and all damage done to the Building
     by moving or maintaining any such safe, equipment or other property shall
     be repaired at the expense of Tenant.

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.

20.  Tenant shall not install, maintain or operate upon its Premises any
     vending machine without the written consent of Landlord.

21.  There shall not be used in any space, or in the public areas of the Project
     either by Tenant or others, any hand trucks except those equipped with
     rubber tires and side guards or such other material handling equipment as
     Landlord may approve. Tenants using hand trucks shall be required to use
     the freight elevator, or such elevator as Landlord shall designate. No
     other vehicles of any kind shall be brought by Tenant into or kept in or
     about its Premises.

22.  Each tenant shall store all its trash and garbage within the interior of
     the Premises. 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. All trash, garbage and refuse disposal shall be made only
     through entry-ways and elevators provided for such purposes and at such
     times as Landlord shall designate. If the Building has implemented a
     building-wide recycling program for tenants, Tenant shall use good faith
     efforts to participate in said program.

23.  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.

24.  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.

25.  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.

                              Exhibit A - Page 2
<PAGE>

26.  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.

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

28.  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.

29.  The requirements of Tenant will be attended to only upon appropriate
     application at the office of the Building by an authorized individual.
     Employees of Landlord shall not perform any work or do anything outside of
     their regular duties unless under special instructions from Landlord, and
     no employees of Landlord will admit any person (tenant or otherwise) to any
     office without specific instructions from Landlord.

30.  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.
     Parking spaces shall be for passenger vehicles only; no boats, trucks,
     trailers, recreational vehicles or other types of vehicles may be parked in
     the parking areas (except that trucks may be loaded and unloaded in
     designated loading areas). 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. Any tenant found parking in such designated visitor or
     reserved parking 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.

31.  No smoking of any kind shall be permitted anywhere within the Building,
     including, without limitation, the Premises and those areas immediately
     adjacent to the entrances and exits to the Building, or any other area as
     Landlord elects. Smoking in the Project is only permitted in smoking areas
     identified by Landlord, which may be relocated from time to time.

32.  If the Building furnishes common area conferences rooms for tenant usage,
     Landlord shall have the right to control each tenant's usage of the
     conference rooms, including limiting tenant usage so that the rooms are
     equally available to all tenants in the Building. Any common area amenities
     or facilities shall be provided from time to time at Landlord's discretion.

33.  Tenant shall not swap or exchange building keys or cardkeys with other
     employees or tenants in the Building or the Project.

34.  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.

35.  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.

3G.  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.
     Landlord will be non-discriminatory as to the enforcement of the rules and
     --------------------------------------------------------------------------
     regulations for Tenant's of comparable size (square footage) within the
     -----------------------------------------------------------------------
     project.
     -------

37.  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 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>

                                   EXHIBIT B

                   [SITE PLAN - SANTA MONICA BUSINESS PARK]
<PAGE>

                                   EXHIBIT C

                              TENANT IMPROVEMENTS
                              -------------------

     1.   In consideration of the mutual covenants contained in the Lease of
which this Exhibit C is a part, Landlord agrees to perform the following initial
tenant improvement work in the Premises ("Tenant Improvements

          NONE

     2.   All the Tenant Improvements described above shall be performed by
Landlord at its cost and expense using Building Standard materials and in the
Building Standard manner. As used herein, "Building Standard" shall mean the
standards for a particular item selected from time to time by Landlord for the
Building or such other standards as may be mutually agreed upon between Landlord
and Tenant in writing.

     3.   Without limiting the "as-is" provisions of the Lease, Tenant accepts
the Premises in its "as-is" condition and acknowledges that Landlord has no
obligation to make any changes or improvements to the Premises or to pay any
costs expended or to be expended in connection with any such changes or
improvements, other than the Tenant Improvements specified in Paragraph 1 of
this Exhibit C. Landlord represents that building systems are in good working
                -------------------------------------------------------------
order and primary latent defect will be the responsibility of the Landlord.
--------------------------------------------------------------------------

     4.   Tenant shall not perform any work in the Premises (including, without
limitation, cabling, wiring, fixturization, painting, carpeting, replacements or
repairs) except in accordance with Paragraphs 12 and 27 of the Lease.
<PAGE>

                                2850 OCEAN PARK

                                 GARDEN LEVEL

                                 4681 SQ. FT.

                                  [EXHIBIT D]

                              [PLAN APPEARS HERE]

<PAGE>

LEASE AMENDMENT NUMBER ONE to Lease dated March 10, 1999, between SPIEKER
PROPERTIES, L.P., a California limited partnership, as Landlord, and Multilink
Technology Corporation, a California corporation, as Tenant, for the Premises
commonly known as 2850 Ocean Park Blvd., Santa Monica, California 90405.

Effective April 23, 1999, the above-described Lease shall be modified as follows
for Tenant's expansion into Suite 330 and Suite 335:

TERM: The term for Suites 330 and 335 shall commence May 15, 1999, or when the
----
improvements are substantially completed, whichever is earlier, and shall be
coterminous with the initial Garden Level space, which is September 30, 200O.

RENTABLE AREA. The rentable area shall include that portion of the 3/rd/ floor
-------------
designated as Suite 330 (approximately 2,361 rentable square feet) and Suite 335
(approximately 2,635 rentable square feet) as shown cross hatched on the
attached Exhibit B. Tenant's total rentable square area shall be increased to
9,677 rentable square feet.

BASIC MONTHLY RENTAL
--------------------

The base rental amount for Suite 330 is as follows:

Commencement Date - September 30, 2000           $4,840.05 per month (%2.05/rsf)

The base rental amount for Suite 335 is as follows

Commencement Date- September 30,200O             $5,401.75 per month (%2.05/rsf)

IMPROVEMENTS,
-------------

Tenant agrees to lease Suite 330 in its "as is" condition, except for the
following: Landlord agrees at Landlord's sole cost and expense to remove panic
hardware on the three (3) exterior corridor doors and install building standard
hardware; remove two (2) sets of interior doors and frame the doorways; remove
the display walls, patch and paint walls; remove the vertical blinds and replace
with building standard mini blinds on exterior windows; remove two (2) white
boards; remove verticals blinds along west wall.

Tenant agrees to lease Suite 335 in its "as is" condition, except for the
following: Landlord agrees at Landlord's sole cost and expense to install
additional electrical wall outlet every six (6) feet in the open area of the
suite; touch up paint as required; install suite door frame.

OPTION TO RENEW, Tenant shall, provided this Lease is in full force and effect
----------------
and Tenant is not and has not been in default under any of the terms and
conditions of this Lease, have one (1) option to renew this Lease for a term of
six (6) months for the Premises (Suite 330, Suite 335, and Garden Level Suite)
in "as is" condition and on the same terms and conditions set forth in this
Lease, except as modified by the terms, covenants and conditions set forth
below:

      (1)  If Tenant elects to exercise such option, then Tenant shall provide
           Landlord with written notice no later than 5:00 p.m. (Pacific
           Standard Time) on the date which is six (6) months prior to the
           expiration of the then current term of this Lease. If Tenant fails to
           provide such notice, Tenant shall have no further or additional right
           to extend or renew the term of this Lease.

      (2)  The Base Rent in effect at the expiration of the then current term of
           this Lease shall be increased to $2.22 per square foot, per month.

      (3)  Tenant's right to exercise any option to renew under this Paragraph
           shall be conditioned upon Tenant occupying the entire Premises and
           the same not being occupied by any assignee, subtenant or licensee
           other than Tenant or its affiliate at the time of exercise of any
           option and commencement of the renewal term. Tenant's exercise of any
           option to renew shall constitute a representation by Tenant to
           Landlord that as of the date of exercise of the option and the
           commencement of the applicable renewal term, Tenant does not intend
           to seek to assign this Lease in whole or in part, or sublet all or
           any portion of the Premises.

      (4)  Any exercise by Tenant of any option to renew under this Paragraph
           shall be irrevocable. If requested by Landlord, Tenant agrees to
           execute a lease amendment or, at Landlord's option, a new lease
           agreement on Landlord's then standard lease form for the Building,
           reflecting the foregoing terms and conditions, prior to the
           commencement of the renewal term. The option to renew granted under
           this Paragraph is not transferable; the parties hereto acknowledge
           and agree that they intend that the option to renew this Lease
           under this Paragraph shall be "personal" to the specific Tenant named
           in this Lease and that in no event: will any assignee or sublessee
           have any rights to exercise such option(s) to renew

SECURITY DEPOSIT. Security: deposit shall increase by $10.241.80 to reflect the
-----------------
inclusion of Suites 330 ($4,840.05) and 335 ($5,401.75).

PARKING, Tenant shall be allowed an additional twenty (20) parking spaces at
--------
the prevailing market rate. Ten (10) unreserved surface parking spaces at the
prevailing market rate of $60/month/space, not including taxes; and Four (4)
reserved tandem spaces (8 spaces total) at the prevailing market rate of
$60/month/space, not including taxes; and Two (2) single reserved spaces at the
prevailing market rate of $120/month/space, not including taxes.
<PAGE>

IN WITNESS WHEREOF, the parties hereto have signed and sealed this Lease
Amendment Number One as dated below.

LANDLORD:           SPIEKER PROPERTIES, L.P.,
                    a California limited partnership
                    By:  Spieker Properties, Inc.,
                         a Maryland corporation
                    Its: General Partner

                    By: /s/ Mark Valentine
                       --------------------------
                           Mark Valentine
                           Vice President

                    Date:       05/19/99
                         ------------------------

TENANT:             MULTILINK TECHNOLOGY CORPORATION
                    a California corporation

                    By: /s/ Richard N. Nottenburg
                        -------------------------

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

                    Date:  4/30/99
                         ------------------------
<PAGE>

                                   EXHIBIT B

        [PICTURE OF SITE PLAN-SANTA MONICA BUSINESS PARK APPEARS HERE]

                     Site Plan-Santa Monica Business Park
<PAGE>

                   [LOGO OF SPIKER PROPERTIES APPEARS HERE]

               [LOGO OF SANTA MONICA BUSINESS PARK APPEARS HERE]

2850 OCEAN PARK BOULEVARD
SUITE 330
Santa Monica, California
RENTABLE SQ. FT. 2,361

                           [SITE PLAN APPEARS HERE]

2850 OCEAN PARK BLVD.
Santa Monica, California
Building W
SUITE 335
RENTABLE SQ. FT.: 2,664

                           [SITE PLAN APPEARS HERE]

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