Document:

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                                                                    EXHIBIT 10.4

                                RESONATE, INC.

                       2000 EMPLOYEE STOCK PURCHASE PLAN

     The following constitute the provisions of the 2000 Employee Stock Purchase
Plan of Resonate, Inc..

     1.   Purpose. The purpose of the Plan is to provide employees of the
          -------
Company and its Designated Subsidiaries with an opportunity to purchase Common
Stock of the Company through accumulated payroll deductions. It is the intention
of the Company to have the Plan qualify as an "Employee Stock Purchase Plan"
under Section 423 of the Internal Revenue Code of 1986, as amended. The
provisions of the Plan, accordingly, shall be construed so as to extend and
limit participation in a manner consistent with the requirements of that section
of the Code.

     2.   Definitions.
          -----------

          (a) "Board" shall mean the Board of Directors of the Company or any
               -----
committee thereof designated by the Board of Directors of the Company in
accordance with Section 14 of the Plan.

          (b) "Code" shall mean the Internal Revenue Code of 1986, as amended.
               ----

          (c) "Common Stock" shall mean the common stock of the Company.
               ------------

          (d) "Company" shall mean Resonate, Inc. and any Designated Subsidiary
               -------
of the Company.

          (e) "Compensation" shall mean all base straight time gross earnings
               ------------
and commissions, but exclusive of payments for overtime, shift premium,
incentive compensation, incentive payments, bonuses and other compensation.

          (f) "Designated Subsidiary" shall mean any Subsidiary that has been
               ---------------------
designated by the Board from time to time in its sole discretion as eligible to
participate in the Plan.

          (g) "Employee" shall mean any individual who is an Employee of the
               --------
Company for tax purposes whose customary employment with the Company is at least
twenty (20) hours per week and more than five (5) months in any calendar year.
For purposes of the Plan, the employment relationship shall be treated as
continuing intact while the individual is on sick leave or other leave of
absence approved by the Company.  Where the period of leave exceeds 90 days and
the individual's right to reemployment is not guaranteed either by statute or by
contract, the employment relationship shall be deemed to have terminated on the
91st day of such leave.

          (h) "Enrollment Date" shall mean the first Trading Day of each
               ---------------
Offering Period.

          (i) "Exercise Date" shall mean the last Trading Day of each Purchase
               -------------
Period.
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          (j)  "Fair Market Value" shall mean, as of any date, the value of
                -----------------
Common Stock determined as follows:

               (i)   If the Common Stock is listed on any established stock
exchange or a national market system, including without limitation the Nasdaq
National Market or The Nasdaq SmallCap Market of The Nasdaq Stock Market, its
Fair Market Value shall be the closing sales price for such stock (or the
closing bid, if no sales were reported) as quoted on such exchange or system for
the last trading day prior to the date of determination, as reported in The Wall
Street Journal or such other source as the Board deems reliable;

               (ii)  If the Common Stock is regularly quoted by a recognized
securities dealer but selling prices are not reported, its Fair Market Value
shall be the mean of the closing bid and asked prices for the Common Stock on
the last trading day prior to the date of determination, as reported in The Wall
Street Journal or such other source as the Board deems reliable;

               (iii) In the absence of an established market for the Common
Stock, the Fair Market Value thereof shall be determined in good faith by the
Board; or

               (iv)  For purposes of the Enrollment Date of the first Offering
Period under the Plan, the Fair Market Value shall be the initial price to the
public as set forth in the final prospectus included within the registration
statement in Form S-1 filed with the Securities and Exchange Commission for the
initial public offering of the Company's Common Stock (the "Registration
Statement").

          (k)  "Offering Periods" shall mean the periods of approximately
                ----------------
twenty-four (24) months during which an option granted pursuant to the Plan may
be exercised, commencing on the first Trading Day on or after August 1/st/ and
February 1/st/ of each year and terminating on the last Trading Day in the
periods ending twenty-four months later; provided, however, that the first
Offering Period under the Plan shall commence with the first Trading Day on or
after the date on which the Securities and Exchange Commission declares the
Company's Registration Statement effective and ending on the last Trading Day on
or before July 31, 2002. The duration and timing of Offering Periods may be
changed pursuant to Section 4 of this Plan.

          (l)  "Plan" shall mean this 2000 Employee Stock Purchase Plan.
                ----

          (m)  "Purchase Period" shall mean the approximately six month period
                ---------------
commencing after one Exercise Date and ending with the next Exercise Date,
except that the first Purchase Period of any Offering Period shall commence on
the Enrollment Date and end with the next Exercise Date.

          (n)  "Purchase Price" shall mean 85% of the Fair Market Value of a
                --------------
share of Common Stock on the Enrollment Date or on the Exercise Date, whichever
is lower; provided however, that the Purchase Price may be adjusted by the Board
pursuant to Section 20.

          (o)  "Reserves" shall mean the number of shares of Common Stock
                --------
covered by each option under the Plan which have not yet been exercised and the
number of shares of Common Stock which have been authorized for issuance under
the Plan but not yet placed under option.

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          (p)  "Subsidiary" shall mean a corporation, domestic or foreign, of
                ----------
which not less than 50% of the voting shares are held by the Company or a
Subsidiary, whether or not such corporation now exists or is hereafter organized
or acquired by the Company or a Subsidiary.

          (q)  "Trading Day" shall mean a day on which national stock exchanges
                -----------
and the Nasdaq System are open for trading.

     3.   Eligibility.
          -----------

          (a)  Any Employee who shall be employed by the Company on a given
Enrollment Date shall be eligible to participate in the Plan.

          (b)  Any provisions of the Plan to the contrary notwithstanding, no
Employee shall be granted an option under the Plan (i) to the extent that,
immediately after the grant, such Employee (or any other person whose stock
would be attributed to such Employee pursuant to Section 424(d) of the Code)
would own capital stock of the Company and/or hold outstanding options to
purchase such stock possessing five percent (5%) or more of the total combined
voting power or value of all classes of the capital stock of the Company or of
any Subsidiary, or (ii) to the extent that his or her rights to purchase stock
under all employee stock purchase plans of the Company and its subsidiaries
accrues at a rate which exceeds Twenty-Five Thousand Dollars ($25,000) worth of
stock (determined at the fair market value of the shares at the time such option
is granted) for each calendar year in which such option is outstanding at any
time.

     4.   Offering Periods.  The Plan shall be implemented by consecutive,
          ----------------
overlapping Offering Periods with a new Offering Period commencing on the first
Trading Day on or after August 1/st/ and February 1/st/ each year, or on such
other date as the Board shall determine, and continuing thereafter until
terminated in accordance with Section 20 hereof; provided, however, that the
first Offering Period under the Plan shall commence with the first Trading Day
on or after the date on which the Securities and Exchange Commission declares
the Company's Registration Statement effective and ending on the last Trading
Day on or before July 31, 2002.  The Board shall have the power to change the
duration of Offering Periods (including the commencement dates thereof) with
respect to future offerings without shareholder approval if such change is
announced at least five (5) days prior to the scheduled beginning of the first
Offering Period to be affected thereafter.

     5.   Participation.
          -------------

          (a)  An eligible Employee may become a participant in the Plan by
completing a subscription agreement authorizing payroll deductions in the form
of Exhibit A to this Plan and filing it with the Company's payroll office prior
to the applicable Enrollment Date.

          (b)  Payroll deductions for a participant shall commence on the first
payroll following the Enrollment Date and shall end on the last payroll in the
Offering Period to which such authorization is applicable, unless sooner
terminated by the participant as provided in Section 10 hereof.

                                      -3-
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     6.   Payroll Deductions.
          ------------------

          (a)  At the time a participant files his or her subscription
agreement, he or she shall elect to have payroll deductions made on each pay day
during the Offering Period in an amount not exceeding 15% of the Compensation
which he or she receives on each pay day during the Offering Period.

          (b)  All payroll deductions made for a participant shall be credited
to his or her account under the Plan and shall be withheld in whole percentages
only. A participant may not make any additional payments into such account.

          (c)  A participant may discontinue his or her participation in the
Plan as provided in Section 10 hereof, or may increase or decrease the rate of
his or her payroll deductions during the Offering Period by completing or filing
with the Company a new subscription agreement authorizing a change in payroll
deduction rate. The Board may, in its discretion, limit the number of
participation rate changes during any Offering Period. The change in rate shall
be effective with the first full payroll period following five (5) business days
after the Company's receipt of the new subscription agreement unless the Company
elects to process a given change in participation more quickly. A participant's
subscription agreement shall remain in effect for successive Offering Periods
unless terminated as provided in Section 10 hereof.

          (d)  Notwithstanding the foregoing, to the extent necessary to comply
with Section 423(b)(8) of the Code and Section 3(b) hereof, a participant's
payroll deductions may be decreased to zero percent (0%) at any time during a
Purchase Period.  Payroll deductions shall recommence at the rate provided in
such participant's subscription agreement at the beginning of the first Purchase
Period which is scheduled to end in the following calendar year, unless
terminated by the participant as provided in Section 10 hereof.

          (e)  At the time the option is exercised, in whole or in part, or at
the time some or all of the Company's Common Stock issued under the Plan is
disposed of, the participant must make adequate provision for the Company's
federal, state, or other tax withholding obligations, if any, which arise upon
the exercise of the option or the disposition of the Common Stock.  At any time,
the Company may, but shall not be obligated to, withhold from the participant's
compensation the amount necessary for the Company to meet applicable withholding
obligations, including any withholding required to make available to the Company
any tax deductions or benefits attributable to sale or early disposition of
Common Stock by the Employee.

     7.   Grant of Option.  On the Enrollment Date of each Offering Period,
          ---------------
each eligible Employee participating in such Offering Period shall be granted an
option to purchase on each Exercise Date during such Offering Period (at the
applicable Purchase Price) up to a number of shares of the Company's Common
Stock determined by dividing such Employee's payroll deductions accumulated
prior to such Exercise Date and retained in the Participant's account as of the
Exercise Date by the applicable Purchase Price; provided that in no event shall
an Employee be permitted to purchase during each Purchase Period more than
1,250 shares of the Company's Common Stock (subject to any adjustment pursuant
to Section 19), and provided further that such purchase shall be subject to the
limitations set forth in Sections 3(b) and 12 hereof.  The Board may, for future
Offering Periods, increase or decrease, in its absolute discretion, the maximum
number of shares of

                                      -4-
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the Company's Common Stock an Employee may purchase during each Purchase Period
of such Offering Period. Exercise of the option shall occur as provided in
Section 8 hereof, unless the participant has withdrawn pursuant to Section 10
hereof. The option shall expire on the last day of the Offering Period.

     8.   Exercise of Option.
          ------------------

          (a)  Unless a participant withdraws from the Plan as provided in
Section 10 hereof, his or her option for the purchase of shares shall be
exercised automatically on the Exercise Date, and the maximum number of full
shares subject to option shall be purchased for such participant at the
applicable Purchase Price with the accumulated payroll deductions in his or her
account.  No fractional shares shall be purchased; any payroll deductions
accumulated in a participant's account which are not sufficient to purchase a
full share shall be retained in the participant's account for the subsequent
Purchase Period or Offering Period, subject to earlier withdrawal by the
participant as provided in Section 10 hereof.  Any other monies left over in a
participant's account after the Exercise Date shall be returned to the
participant.  During a participant's lifetime, a participant's option to
purchase shares hereunder is exercisable only by him or her.

          (b)  If the Board determines that, on a given Exercise Date, the
number of shares with respect to which options are to be exercised may exceed
(i) the number of shares of Common Stock that were available for sale under the
Plan on the Enrollment Date of the applicable Offering Period, or (ii) the
number of shares available for sale under the Plan on such Exercise Date, the
Board may in its sole discretion (x) provide that the Company shall make a pro
rata allocation of the shares of Common Stock available for purchase on such
Enrollment Date or Exercise Date, as applicable, in as uniform a manner as shall
be practicable and as it shall determine in its sole discretion to be equitable
among all participants exercising options to purchase Common Stock on such
Exercise Date, and continue all Offering Periods then in effect, or (y) provide
that the Company shall make a pro rata allocation of the shares available for
purchase on such Enrollment Date or Exercise Date, as applicable, in as uniform
a manner as shall be practicable and as it shall determine in its sole
discretion to be equitable among all participants exercising options to purchase
Common Stock on such Exercise Date, and terminate any or all Offering Periods
then in effect pursuant to Section 20 hereof. The Company may make pro rata
allocation of the shares available on the Enrollment Date of any applicable
Offering Period pursuant to the preceding sentence, notwithstanding any
authorization of additional shares for issuance under the Plan by the Company's
shareholders subsequent to such Enrollment Date.

     9.   Delivery. As promptly as practicable after each Exercise Date on which
          --------
a purchase of shares occurs, the Company shall arrange the delivery to each
participant, as appropriate, of a certificate representing the shares purchased
upon exercise of his or her option.

     10.  Withdrawal.
          ----------

          (a)  A participant may withdraw all but not less than all the payroll
deductions credited to his or her account and not yet used to exercise his or
her option under the Plan at any time by giving written notice to the Company in
the form of Exhibit B to this Plan.  All of the participant's payroll deductions
credited to his or her account shall be paid to such participant

                                      -5-
<PAGE>

promptly after receipt of notice of withdrawal and such participant's option for
the Offering Period shall be automatically terminated, and no further payroll
deductions for the purchase of shares shall be made for such Offering Period. If
a participant withdraws from an Offering Period, payroll deductions shall not
resume at the beginning of the succeeding Offering Period unless the participant
delivers to the Company a new subscription agreement.

          (b)  A participant's withdrawal from an Offering Period shall not have
any effect upon his or her eligibility to participate in any similar plan which
may hereafter be adopted by the Company or in succeeding Offering Periods which
commence after the termination of the Offering Period from which the participant
withdraws.

     11.  Termination of Employment.
          -------------------------

          Upon a participant's ceasing to be an Employee, for any reason, he or
she shall be deemed to have elected to withdraw from the Plan and the payroll
deductions credited to such participant's account during the Offering Period but
not yet used to exercise the option shall be returned to such participant or, in
the case of his or her death, to the person or persons entitled thereto under
Section 15 hereof, and such participant's option shall be automatically
terminated.  The preceding sentence notwithstanding, a participant who receives
payment in lieu of notice of termination of employment shall be treated as
continuing to be an Employee for the participant's customary number of hours per
week of employment during the period in which the participant is subject to such
payment in lieu of notice.

     12.  Interest.  No interest shall accrue on the payroll deductions of a
          --------
participant in the Plan.

     13.  Stock.
          -----

          (a)  Subject to adjustment upon changes in capitalization of the
Company as provided in Section 19 hereof, the maximum number of shares of the
Company's Common Stock which shall be made available for sale under the Plan
shall be 1,000,000 shares plus an annual increase to be added on the first day
of the Company's fiscal year beginning in 2001, equal to the lesser of (i)
750,000 shares, (ii) 2.5% of the outstanding shares on such date or (iii) a
lesser amount determined by the Board.

          (b)  The participant shall have no interest or voting right in shares
covered by his option until such option has been exercised.

          (c)  Shares to be delivered to a participant under the Plan shall be
registered in the name of the participant or in the name of the participant and
his or her spouse.

     14.  Administration.  The Plan shall be administered by the Board or a
          --------------
committee of members of the Board appointed by the Board.  The Board or its
committee shall have full and exclusive discretionary authority to construe,
interpret and apply the terms of the Plan, to determine eligibility and to
adjudicate all disputed claims filed under the Plan.  Every finding, decision
and determination made by the Board or its committee shall, to the full extent
permitted by law, be final and binding upon all parties.

                                      -6-
<PAGE>

     15.  Designation of Beneficiary.
          --------------------------

          (a)  A participant may file a written designation of a beneficiary who
is to receive any shares and cash, if any, from the participant's account under
the Plan in the event of such participant's death subsequent to an Exercise Date
on which the option is exercised but prior to delivery to such participant of
such shares and cash.  In addition, a participant may file a written designation
of a beneficiary who is to receive any cash from the participant's account under
the Plan in the event of such participant's death prior to exercise of the
option.  If a participant is married and the designated beneficiary is not the
spouse, spousal consent shall be required for such designation to be effective.

          (b)  Such designation of beneficiary may be changed by the participant
at any time by written notice.  In the event of the death of a participant and
in the absence of a beneficiary validly designated under the Plan who is living
at the time of such participant's death, the Company shall deliver such shares
and/or cash to the executor or administrator of the estate of the participant,
or if no such executor or administrator has been appointed (to the knowledge of
the Company), the Company, in its discretion, may deliver such shares and/or
cash to the spouse or to any one or more dependents or relatives of the
participant, or if no spouse, dependent or relative is known to the Company,
then to such other person as the Company may designate.

     16.  Transferability. Neither payroll deductions credited to a
          ---------------
participant's account nor any rights with regard to the exercise of an option or
to receive shares under the Plan may be assigned, transferred, pledged or
otherwise disposed of in any way (other than by will, the laws of descent and
distribution or as provided in Section 15 hereof) by the participant.  Any such
attempt at assignment, transfer, pledge or other disposition shall be without
effect, except that the Company may treat such act as an election to withdraw
funds from an Offering Period in accordance with Section 10 hereof.

     17.  Use of Funds.  All payroll deductions received or held by the Company
          ------------
under the Plan may be used by the Company for any corporate purpose, and the
Company shall not be obligated to segregate such payroll deductions.

     18.  Reports.  Individual accounts shall be maintained for each participant
          -------
in the Plan. Statements of account shall be given to participating Employees at
least annually, which statements shall set forth the amounts of payroll
deductions, the Purchase Price, the number of shares purchased and the remaining
cash balance, if any.

     19.  Adjustments Upon Changes in Capitalization, Dissolution, Liquidation,
          ---------------------------------------------------------------------
Merger or Asset Sale.
--------------------

          (a)  Changes in Capitalization.  Subject to any required action by the
               -------------------------
shareholders of the Company, the Reserves, the maximum number of shares each
participant may purchase each Purchase Period (pursuant to Section 7), the
number of shares that may be added annually to the shares reserved under the
Plan (pursuant to Section 13(a)(i)), as well as the price per share and the
number of shares of Common Stock covered by each option under the Plan which has
not yet been exercised shall be proportionately adjusted for any increase or
decrease in the number of issued shares of Common Stock resulting from a stock
split, reverse stock split, stock dividend, combination or reclassification of
the Common Stock, or any other increase or decrease in the

                                      -7-
<PAGE>

number of shares of Common Stock effected without receipt of consideration by
the Company; provided, however, that conversion of any convertible securities of
the Company shall not be deemed to have been "effected without receipt of
consideration." Such adjustment shall be made by the Board, whose determination
in that respect shall be final, binding and conclusive. Except as expressly
provided herein, no issuance by the Company of shares of stock of any class, or
securities convertible into shares of stock of any class, shall affect, and no
adjustment by reason thereof shall be made with respect to, the number or price
of shares of Common Stock subject to an option.

          (b)  Dissolution or Liquidation.  In the event of the proposed
               --------------------------
dissolution or liquidation of the Company, the Offering Period then in progress
shall be shortened by setting a new Exercise Date (the "New Exercise Date"), and
shall terminate immediately prior to the consummation of such proposed
dissolution or liquidation, unless provided otherwise by the Board.  The New
Exercise Date shall be before the date of the Company's proposed dissolution or
liquidation.  The Board shall notify each participant in writing, at least ten
(10) business days prior to the New Exercise Date, that the Exercise Date for
the participant's option has been changed to the New Exercise Date and that the
participant's option shall be exercised automatically on the New Exercise Date,
unless prior to such date the participant has withdrawn from the Offering Period
as provided in Section 10 hereof.

          (c)  Merger or Asset Sale.  In the event of a proposed sale of all or
               --------------------
substantially all of the assets of the Company, or the merger of the Company
with or into another corporation, each outstanding option shall be assumed or an
equivalent option substituted by the successor corporation or a Parent or
Subsidiary of the successor corporation.  In the event that the successor
corporation refuses to assume or substitute for the option, any Purchase Periods
then in progress shall be shortened by setting a new Exercise Date (the "New
Exercise Date") and any Offering Periods then in progress shall end on the New
Exercise Date.  The New Exercise Date shall be before the date of the Company's
proposed sale or merger.  The Board shall notify each participant in writing, at
least ten (10) business days prior to the New Exercise Date, that the Exercise
Date for the participant's option has been changed to the New Exercise Date and
that the participant's option shall be exercised automatically on the New
Exercise Date, unless prior to such date the participant has withdrawn from the
Offering Period as provided in Section 10 hereof.

     20.  Amendment or Termination.
          ------------------------

          (a)  The Board of Directors of the Company may at any time and for any
reason terminate or amend the Plan.  Except as provided in Section 19 hereof, no
such termination can affect options previously granted, provided that an
Offering Period may be terminated by the Board of Directors on any Exercise Date
if the Board determines that the termination of the Offering Period or the Plan
is in the best interests of the Company and its shareholders.  Except as
provided in Section 19 and this Section 20 hereof, no amendment may make any
change in any option theretofore granted which adversely affects the rights of
any participant.  To the extent necessary to comply with Section 423 of the Code
(or any successor rule or provision or any other applicable law, regulation or
stock exchange rule), the Company shall obtain shareholder approval in such a
manner and to such a degree as required.

          (b)  Without shareholder consent and without regard to whether any
participant rights may be considered to have been "adversely affected," the
Board (or its committee) shall be

                                      -8-
<PAGE>

entitled to change the Offering Periods, limit the frequency and/or number of
changes in the amount withheld during an Offering Period, establish the exchange
ratio applicable to amounts withheld in a currency other than U.S. dollars,
permit payroll withholding in excess of the amount designated by a participant
in order to adjust for delays or mistakes in the Company's processing of
properly completed withholding elections, establish reasonable waiting and
adjustment periods and/or accounting and crediting procedures to ensure that
amounts applied toward the purchase of Common Stock for each participant
properly correspond with amounts withheld from the participant's Compensation,
and establish such other limitations or procedures as the Board (or its
committee) determines in its sole discretion advisable which are consistent with
the Plan.

          (c)  In the event the Board determines that the ongoing operation of
the Plan may result in unfavorable financial accounting consequences, the Board
may, in its discretion and, to the extent necessary or desirable, modify or
amend the Plan to reduce or eliminate such accounting consequence including, but
not limited to:

               (i)   altering the Purchase Price for any Offering Period
including an Offering Period underway at the time of the change in Purchase
Price;

               (ii)  shortening any Offering Period so that Offering Period ends
on a new Exercise Date, including an Offering Period underway at the time of the
Board action; and

               (iii) allocating shares.

          Such modifications or amendments shall not require stockholder
approval or the consent of any Plan participants.

     21.  Notices.  All notices or other communications by a participant to the
          -------
Company under or in connection with the Plan shall be deemed to have been duly
given when received in the form specified by the Company at the location, or by
the person, designated by the Company for the receipt thereof.

     22.  Conditions Upon Issuance of Shares.  Shares shall not be issued with
          ----------------------------------
respect to an option unless the exercise of such option and the issuance and
delivery of such shares pursuant thereto shall comply with all applicable
provisions of law, domestic or foreign, including, without limitation, the
Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as
amended, the rules and regulations promulgated thereunder, and the requirements
of any stock exchange upon which the shares may then be listed, and shall be
further subject to the approval of counsel for the Company with respect to such
compliance.

          As a condition to the exercise of an option, the Company may require
the person exercising such option to represent and warrant at the time of any
such exercise that the shares are being purchased only for investment and
without any present intention to sell or distribute such shares if, in the
opinion of counsel for the Company, such a representation is required by any of
the aforementioned applicable provisions of law.

     23.  Term of Plan.  The Plan shall become effective upon the earlier to
          ------------
occur of its adoption by the Board of Directors or its approval by the
shareholders of the Company. It shall continue in effect for a term of ten (10)
years unless sooner terminated under Section 20 hereof.

                                      -9-
<PAGE>

     24.  Automatic Transfer to Low Price Offering Period.  To the extent
          -----------------------------------------------
permitted by any applicable laws, regulations, or stock exchange rules if the
Fair Market Value of the Common Stock on any Exercise Date in an Offering Period
is lower than the Fair Market Value of the Common Stock on the Enrollment Date
of such Offering Period, then all participants in such Offering Period shall be
automatically withdrawn from such Offering Period immediately after the exercise
of their option on such Exercise Date and automatically re-enrolled in the
immediately following Offering Period as of the first day thereof.

                                      -10-
<PAGE>

                                   EXHIBIT A
                                   ---------

                                RESONATE, INC.

                       2000 EMPLOYEE STOCK PURCHASE PLAN

                            SUBSCRIPTION AGREEMENT

_____ Original Application                           Enrollment Date:___________
_____ Change in Payroll Deduction Rate
_____ Change of Beneficiary(ies)

1.   ____________________ hereby elects to participate in the Resonate, Inc.
     Employee Stock Purchase Plan (the "Employee Stock Purchase Plan") and
     subscribes to purchase shares of the Company's Common Stock in accordance
     with this Subscription Agreement and the Employee Stock Purchase Plan.

2.   I hereby authorize payroll deductions from each paycheck in the amount of
     ____% of my Compensation on each payday (from 0 to _____%) during the
     Offering Period in accordance with the Employee Stock Purchase Plan.
     (Please note that no fractional percentages are permitted.)

3.   I understand that said payroll deductions shall be accumulated for the
     purchase of shares of Common Stock at the applicable Purchase Price
     determined in accordance with the Employee Stock Purchase Plan.  I
     understand that if I do not withdraw from an Offering Period, any
     accumulated payroll deductions will be used to automatically exercise my
     option.

4.   I have received a copy of the complete Employee Stock Purchase Plan.  I
     understand that my participation in the Employee Stock Purchase Plan is in
     all respects subject to the terms of the Plan.  I understand that my
     ability to exercise the option under this Subscription Agreement is subject
     to shareholder approval of the Employee Stock Purchase Plan.

5.   Shares purchased for me under the Employee Stock Purchase Plan should be
     issued in the name(s) of (Employee or Employee and Spouse only).

6.   I understand that if I dispose of any shares received by me pursuant to the
     Plan within 2 years after the Enrollment Date (the first day of the
     Offering Period during which I purchased such shares) or one year after the
     Exercise Date, I will be treated for federal income tax purposes as having
     received ordinary income at the time of such disposition in an amount equal
     to the excess of the fair market value of the shares at the time such
     shares were purchased by me over the price which I paid for the shares.  I
                                                                              -
     hereby agree to notify the Company in writing within 30 days after the date
     ---------------------------------------------------------------------------
     of any disposition of my shares and I will make adequate provision for
     ----------------------------------------------------------------------
     Federal, state or other tax withholding obligations, if any, which arise
     ------------------------------------------------------------------------
     upon the
     --------
<PAGE>

     disposition of the Common Stock. The Company may, but will not be obligated
     -------------------------------
     to, withhold from my compensation the amount necessary to meet any
     applicable withholding obligation including any withholding necessary to
     make available to the Company any tax deductions or benefits attributable
     to sale or early disposition of Common Stock by me. If I dispose of such
     shares at any time after the expiration of the 2-year and 1-year holding
     periods, I understand that I will be treated for federal income tax
     purposes as having received income only at the time of such disposition,
     and that such income will be taxed as ordinary income only to the extent of
     an amount equal to the lesser of (1) the excess of the fair market value of
     the shares at the time of such disposition over the purchase price which I
     paid for the shares, or (2) 15% of the fair market value of the shares on
     the first day of the Offering Period. The remainder of the gain, if any,
     recognized on such disposition will be taxed as capital gain.

7.   I hereby agree to be bound by the terms of the Employee Stock Purchase
     Plan.  The effectiveness of this Subscription Agreement is dependent upon
     my eligibility to participate in the Employee Stock Purchase Plan.

8.   In the event of my death, I hereby designate the following as my
     beneficiary(ies) to receive all payments and shares due me under the
     Employee Stock Purchase Plan:

     NAME: (Please print)_______________________________________________________
                               (First)         (Middle)       (Last)

     _________________________          ________________________________________
     Relationship
                                        ________________________________________
                                        (Address)
<PAGE>

     Employee's Social
     Security Number:              ____________________________________

     Employee's Address:           ____________________________________

                                   ____________________________________

                                   ____________________________________

I UNDERSTAND THAT THIS SUBSCRIPTION AGREEMENT SHALL REMAIN IN EFFECT THROUGHOUT
SUCCESSIVE OFFERING PERIODS UNLESS TERMINATED BY ME.

Dated:_________________________         ________________________________________
                                        Signature of Employee

                                        ________________________________________
                                        Spouse's Signature (If beneficiary other
                                        than spouse)
<PAGE>

                                   EXHIBIT B
                                   ---------

                                RESONATE, INC.

                       2000 EMPLOYEE STOCK PURCHASE PLAN

                             NOTICE OF WITHDRAWAL

     The undersigned participant in the Offering Period of the Resonate, Inc.
Employee Stock Purchase Plan which began on ____________, ______ (the
"Enrollment Date") hereby notifies the Company that he or she hereby withdraws
from the Offering Period.  He or she hereby directs the Company to pay to the
undersigned as promptly as practicable all the payroll deductions credited to
his or her account with respect to such Offering Period.  The undersigned
understands and agrees that his or her option for such Offering Period will be
automatically terminated.  The undersigned understands further that no further
payroll deductions will be made for the purchase of shares in the current
Offering Period and the undersigned shall be eligible to participate in
succeeding Offering Periods only by delivering to the Company a new Subscription
Agreement.

                                    Name and Address of Participant:

                                    ________________________________

                                    ________________________________

                                    ________________________________

                                    Signature:

                                    ________________________________

                                    Date:____________________________
<PAGE>

                                 RESONATE INC.

                            2000 STOCK OPTION PLAN

                            STOCK OPTION AGREEMENT

     Unless otherwise defined herein, the terms defined in the Plan shall have
the same defined meanings in this Option Agreement.

I.   NOTICE OF STOCK OPTION GRANT
     ----------------------------

     [Optionee's Name and Address]

     You have been granted an option to purchase Common Stock of the Company,
subject to the terms and conditions of the Plan and this Option Agreement, as
follows:

     Grant Number                       ______________________________

     Date of Grant                      ______________________________

     Vesting Commencement Date          ______________________________

     Exercise Price per Share           $_____________________________

     Total Number of Shares Granted     ______________________________

     Total Exercise Price               $_____________________________

     Type of Option:                    ___ Incentive Stock Option

                                        ___ Nonstatutory Stock Option

     Term/Expiration Date:              ______________________________

     Vesting Schedule:
     ----------------

     Subject to accelerated vesting as set forth below, this Option may be
exercised, in whole or in part, in accordance with the following schedule:

     [25% of the Shares subject to the Option shall vest twelve months after the
Vesting Commencement Date, and 1/48 of the Shares subject to the Option shall
vest each month thereafter, subject to the Optionee continuing to be a Service
Provider on such dates].
<PAGE>

     Termination Period:
     ------------------

     This Option may be exercised for [three months] after Optionee ceases to be
a Service Provider.  Upon the death or Disability of the Optionee, this Option
may be exercised for [twelve months] after Optionee ceases to be a Service
Provider.  In no event shall this Option be exercised later than the
Term/Expiration Date as provided above.

II.  AGREEMENT
     ---------

     A.   Grant of Option.
          ---------------

          The Plan Administrator of the Company hereby grants to the Optionee
named in the Notice of Grant attached as Part I of this Agreement (the
"Optionee") an option (the "Option") to purchase the number of Shares, as set
forth in the Notice of Grant, at the exercise price per share set forth in the
Notice of Grant (the "Exercise Price"), subject to the terms and conditions of
the Plan, which is incorporated herein by reference.  Subject to Section 15(c)
of the Plan, in the event of a conflict between the terms and conditions of the
Plan and the terms and conditions of this Option Agreement, the terms and
conditions of the Plan shall prevail.

          If designated in the Notice of Grant as an Incentive Stock Option
("ISO"), this Option is intended to qualify as an Incentive Stock Option under
Section 422 of the Code.  However, if this Option is intended to be an Incentive
Stock Option, to the extent that it exceeds the $100,000 rule of Code Section
422(d) it shall be treated as a Nonstatutory Stock Option ("NSO").

     B.   Exercise of Option.
          ------------------

          (a)  Right to Exercise.  This Option is exercisable during its term in
               -----------------
accordance with the Vesting Schedule set out in the Notice of Grant and the
applicable provisions of the Plan and this Option Agreement.

          (b)  Method of Exercise.  This Option is exercisable by delivery of an
               ------------------
exercise notice, in the form attached as Exhibit A (the "Exercise Notice"),
which shall state the election to exercise the Option, the number of Shares in
respect of which the Option is being exercised (the "Exercised Shares"), and
such other representations and agreements as may be required by the Company
pursuant to the provisions of the Plan.  The Exercise Notice shall be completed
by the Optionee and delivered to [title] of the Company.  The Exercise Notice
shall be accompanied by payment of the aggregate Exercise Price as to all
Exercised Shares.  This Option shall be deemed to be exercised upon receipt by
the Company of such fully executed Exercise Notice accompanied by such aggregate
Exercise Price.

               No Shares shall be issued pursuant to the exercise of this Option
unless such issuance and exercise complies with Applicable Laws.  Assuming such
compliance, for income tax purposes the Exercised Shares shall be considered
transferred to the Optionee on the date the Option is exercised with respect to
such Exercised Shares.
<PAGE>

     C.   Method of Payment.
          -----------------

          Payment of the aggregate Exercise Price shall be by any of the
following, or a combination thereof, at the election of the Optionee:

          1.   cash; or

          2.   check; or

          3.   consideration received by the Company under a cashless exercise
program implemented by the Company in connection with the Plan; or

          4.   surrender of other Shares which (i) in the case of Shares
acquired upon exercise of an option, have been owned by the Optionee for more
than six (6) months on the date of surrender, and (ii) have a Fair Market Value
on the date of surrender equal to the aggregate Exercise Price of the Exercised
Shares; [or

          5.   with the Administrator's consent, delivery of Optionee's
promissory note (the "Note") in the form attached hereto as Exhibit C, in the
amount of the aggregate Exercise Price of the Exercised Shares together with the
execution and delivery by the Optionee of the Security Agreement attached hereto
as Exhibit B. The Note shall bear interest at the "applicable federal rate"
prescribed under the Code and its regulations at time of purchase, and shall be
secured by a pledge of the Shares purchased by the Note pursuant to the Security
Agreement][; or

          6.   to the extent permitted by the Administrator, delivery of a
properly executed exercise notice together with such other documentation as the
Administrator and the broker, if applicable, shall require to effect an exercise
of the Option and delivery to the Company of the sale proceeds required to pay
the Exercise Price.]

     D.   Non-Transferability of Option.
          -----------------------------

            This Option may not be transferred in any manner otherwise than by
will or by the laws of descent or distribution and may be exercised during the
lifetime of Optionee only by the Optionee.  The terms of the Plan and this
Option Agreement shall be binding upon the executors, administrators, heirs,
successors and assigns of the Optionee.

     E.   Term of Option.
          --------------

            This Option may be exercised only within the term set out in the
Notice of Grant, and may be exercised during such term only in accordance with
the Plan and the terms of this Option Agreement.

     F.   Tax Consequences.
          ----------------

            Some of the federal tax consequences relating to this Option, as of
the date of this Option, are set forth below.  THIS SUMMARY IS NECESSARILY
INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE.  THE
OPTIONEE SHOULD
<PAGE>

CONSULT A TAX ADVISER BEFORE EXERCISING THIS OPTION OR DISPOSING OF THE SHARES.

     G.   Exercising the Option.
          ---------------------

               1.   Nonstatutory Stock Option. The Optionee may incur regular
                    -------------------------
federal income tax liability upon exercise of a NSO. The Optionee will be
treated as having received compensation income (taxable at ordinary income tax
rates) equal to the excess, if any, of the Fair Market Value of the Exercised
Shares on the date of exercise over their aggregate Exercise Price. If the
Optionee is an Employee or a former Employee, the Company will be required to
withhold from his or her compensation or collect from Optionee and pay to the
applicable taxing authorities an amount in cash equal to a percentage of this
compensation income at the time of exercise, and may refuse to honor the
exercise and refuse to deliver Shares if such withholding amounts are not
delivered at the time of exercise.

               2.   Incentive Stock Option. If this Option qualifies as an ISO,
                    ----------------------
the Optionee will have no regular federal income tax liability upon its
exercise, although the excess, if any, of the Fair Market Value of the Exercised
Shares on the date of exercise over their aggregate Exercise Price will be
treated as an adjustment to alternative minimum taxable income for federal tax
purposes and may subject the Optionee to alternative minimum tax in the year of
exercise. In the event that the Optionee ceases to be an Employee but remains a
Service Provider, any Incentive Stock Option of the Optionee that remains
unexercised shall cease to qualify as an Incentive Stock Option and will be
treated for tax purposes as a Nonstatutory Stock Option on the date three (3)
months and one (1) day following such change of status.

               3.   Disposition of Shares.
                     ---------------------

                         (a)  NSO. If the Optionee holds NSO Shares for at least
                              ---
one year, any gain realized on disposition of the Shares will be treated as
long-term capital gain for federal income tax purposes.

                         (b)  ISO. If the Optionee holds ISO Shares for at least
                              ---
one year after exercise and two years after the grant date, any gain realized on
disposition of the Shares will be treated as long-term capital gain for federal
income tax purposes. If the Optionee disposes of ISO Shares within one year
after exercise or two years after the grant date, any gain realized on such
disposition will be treated as compensation income (taxable at ordinary income
rates) to the extent of the excess, if any, of the lesser of (A) the difference
between the Fair Market Value of the Shares acquired on the date of exercise and
the aggregate Exercise Price, or (B) the difference between the sale price of
such Shares and the aggregate Exercise Price. Any additional gain will be taxed
as capital gain, short-term or long-term depending on the period that the ISO
Shares were held.

                         (c)  Notice of Disqualifying Disposition of ISO Shares.
                              -------------------------------------------------
If the Optionee sells or otherwise disposes of any of the Shares acquired
pursuant to an ISO on or before the later of (i) two years after the grant date,
or (ii) one year after the exercise date, the Optionee shall immediately notify
the Company in writing of such disposition. The Optionee agrees that he or she
may be subject to income tax withholding by the Company on the compensation
income recognized from such early disposition of ISO Shares by payment in cash
or out of the current earnings paid to the Optionee.
<PAGE>

     H.   Entire Agreement; Governing Law.
          -------------------------------

               The Plan is incorporated herein by reference. The Plan and this
Option Agreement constitute the entire agreement of the parties with respect to
the subject matter hereof and supersede in their entirety all prior undertakings
and agreements of the Company and Optionee with respect to the subject matter
hereof, and may not be modified adversely to the Optionee's interest except by
means of a writing signed by the Company and Optionee. This agreement is
governed by the internal substantive laws, but not the choice of law rules, of
California.

     I.   NO GUARANTEE OF CONTINUED SERVICE.
          ---------------------------------

               OPTIONEE ACKNOWLEDGES AND AGREES THAT THE VESTING OF SHARES
PURSUANT TO THE VESTING SCHEDULE HEREOF IS EARNED ONLY BY CONTINUING AS A
SERVICE PROVIDER AT THE WILL OF THE COMPANY (AND NOT THROUGH THE ACT OF BEING
HIRED, BEING GRANTED AN OPTION OR PURCHASING SHARES HEREUNDER). OPTIONEE FURTHER
ACKNOWLEDGES AND AGREES THAT THIS AGREEMENT, THE TRANSACTIONS CONTEMPLATED
HEREUNDER AND THE VESTING SCHEDULE SET FORTH HEREIN DO NOT CONSTITUTE AN EXPRESS
OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT AS A SERVICE PROVIDER FOR THE VESTING
PERIOD, FOR ANY PERIOD, OR AT ALL, AND SHALL NOT INTERFERE WITH OPTIONEE'S RIGHT
OR THE COMPANY'S RIGHT TO TERMINATE OPTIONEE'S RELATIONSHIP AS A SERVICE
PROVIDER AT ANY TIME, WITH OR WITHOUT CAUSE.

     By your signature and the signature of the Company's representative below,
you and the Company agree that this Option is granted under and governed by the
terms and conditions of the Plan and this Option Agreement.  Optionee has
reviewed the Plan and this Option Agreement in their entirety, has had an
opportunity to obtain the advice of counsel prior to executing this Option
Agreement and fully understands all provisions of the Plan and Option Agreement.
Optionee hereby agrees to accept as binding, conclusive and final all decisions
or interpretations of the Administrator upon any questions relating to the Plan
and Option Agreement.  Optionee further agrees to notify the Company upon any
change in the residence address indicated below.

OPTIONEE:                           RESONATE INC.

_______________________________     __________________________________
Signature                           By

_______________________________     __________________________________
Print Name                          Title

_______________________________
Residence Address

_______________________________
<PAGE>

                               CONSENT OF SPOUSE
                               -----------------

     The undersigned spouse of Optionee has read and hereby approves the terms
and conditions of the Plan and this Option Agreement.  In consideration of the
Company's granting his or her spouse the right to purchase Shares as set forth
in the Plan and this Option Agreement, the undersigned hereby agrees to be
irrevocably bound by the terms and conditions of the Plan and this Option
Agreement and further agrees that any community property interest shall be
similarly bound.  The undersigned hereby appoints the undersigned's spouse as
attorney-in-fact for the undersigned with respect to any amendment or exercise
of rights under the Plan or this Option Agreement.

                                    _______________________________
                                    Spouse of Optionee
<PAGE>

                                   EXHIBIT A
                                   ---------

                                 RESONATE INC.

                            2000 STOCK OPTION PLAN

                                EXERCISE NOTICE

Resonate Inc.
385 Moffett Park Drive
Sunnyvale, California 94089

Attention: [Title]

     1.   Exercise of Option.  Effective as of today, ________________, _____,
          ------------------
the undersigned ("Purchaser") hereby elects to purchase ______________ shares
(the "Shares") of the Common Stock of Resonate Inc. (the "Company") under and
pursuant to the 2000 Stock Plan (the "Plan") and the Stock Option Agreement
dated, _____ (the "Option Agreement").  The purchase price for the Shares shall
be $_____, as required by the Option Agreement.

     2.   Delivery of Payment.  Purchaser herewith delivers to the Company the
          -------------------
full purchase price for the Shares.

     3.   Representations of Purchaser.  Purchaser acknowledges that Purchaser
          ----------------------------
has received, read and understood the Plan and the Option Agreement and agrees
to abide by and be bound by their terms and conditions.

     4.   Rights as Shareholder.  Until the issuance (as evidenced by the
          ---------------------
appropriate entry on the books of the Company or of a duly authorized transfer
agent of the Company) of the Shares, no right to vote or receive dividends or
any other rights as a shareholder shall exist with respect to the Optioned
Stock, notwithstanding the exercise of the Option.  The Shares so acquired shall
be issued to the Optionee as soon as practicable after exercise of the Option.
No adjustment will be made for a dividend or other right for which the record
date is prior to the date of issuance, except as provided in Section 13 of the
Plan.

     5.   Tax Consultation.  Purchaser understands that Purchaser may suffer
          ----------------
adverse tax consequences as a result of Purchaser's purchase or disposition of
the Shares.  Purchaser represents that Purchaser has consulted with any tax
consultants Purchaser deems advisable in connection with the purchase or
disposition of the Shares and that Purchaser is not relying on the Company for
any tax advice.
<PAGE>

     6.   Entire Agreement; Governing Law.  The Plan and Option Agreement are
          -------------------------------
incorporated herein by reference.  This Agreement, the Plan and the Option
Agreement constitute the entire agreement of the parties with respect to the
subject matter hereof and supersede in their entirety all prior undertakings and
agreements of the Company and Purchaser with respect to the subject matter
hereof, and may not be modified adversely to the Purchaser's interest except by
means of a writing signed by the Company and Purchaser.  This agreement is
governed by the internal substantive laws, but not the choice of law rules, of
California.

Submitted by:                       Accepted by:

PURCHASER:                          RESONATE INC.

_______________________________     _______________________________
Signature                           By

_______________________________     _______________________________
Print Name                          Its

Address:                            Address:
-------                             -------

_______________________________     Resonate Inc.
                                    385 Moffett Park Drive
_______________________________     Sunnyvale, California 94089

                                    _______________________________
                                    Date Received
<PAGE>

                                   EXHIBIT B
                                   ---------

                              SECURITY AGREEMENT

     This Security Agreement is made as of __________, _____ between Resonate
Inc., a Delaware corporation ("Pledgee"), and _________________________
("Pledgor").

                                   Recitals
                                   --------

     Pursuant to Pledgor's election to purchase Shares under the Option
Agreement dated ________ (the "Option"), between Pledgor and Pledgee under
Pledgee's 2000 Stock Plan, and Pledgor's election under the terms of the Option
to pay for such shares with his promissory note (the "Note"), Pledgor has
purchased _________ shares of Pledgee's Common Stock (the "Shares") at a price
of $________ per share, for a total purchase price of $__________.  The Note and
the obligations thereunder are as set forth in Exhibit C to the Option.

     NOW, THEREFORE, it is agreed as follows:

     1.   Creation and Description of Security Interest.  In consideration of
          ---------------------------------------------
the transfer of the Shares to Pledgor under the Option Agreement, Pledgor,
pursuant to the California Commercial Code, hereby pledges all of such Shares
(herein sometimes referred to as the "Collateral") represented by certificate
number ______, duly endorsed in blank or with executed stock powers, and
herewith delivers said certificate to the Secretary of Pledgee ("Pledgeholder"),
who shall hold said certificate subject to the terms and conditions of this
Security Agreement.

          The pledged stock (together with an executed blank stock assignment
for use in transferring all or a portion of the Shares to Pledgee if, as and
when required pursuant to this Security Agreement) shall be held by the
Pledgeholder as security for the repayment of the Note, and any extensions or
renewals thereof, to be executed by Pledgor pursuant to the terms of the Option,
and the Pledgeholder shall not encumber or dispose of such Shares except in
accordance with the provisions of this Security Agreement.

     2.   Pledgor's Representations and Covenants.  To induce Pledgee to enter
          ---------------------------------------
into this Security Agreement, Pledgor represents and covenants to Pledgee, its
successors and assigns, as follows:

          (a) Payment of Indebtedness.  Pledgor will pay the principal sum of
              -----------------------
the Note secured hereby, together with interest thereon, at the time and in the
manner provided in the Note.

          (b) Encumbrances.  The Shares are free of all other encumbrances,
              ------------
defenses and liens, and Pledgor will not further encumber the Shares without the
prior written consent of Pledgee.
<PAGE>

          (c) Margin Regulations.  In the event that Pledgee's Common Stock is
              ------------------
now or later becomes margin-listed by the Federal Reserve Board and Pledgee is
classified as a "lender" within the meaning of the regulations under Part 207 of
Title 12 of the Code of Federal Regulations ("Regulation G"), Pledgor agrees to
cooperate with Pledgee in making any amendments to the Note or providing any
additional collateral as may be necessary to comply with such regulations.

     3.   Voting Rights.  During the term of this pledge and so long as all
          -------------
payments of principal and interest are made as they become due under the terms
of the Note, Pledgor shall have the right to vote all of the Shares pledged
hereunder.

     4.   Stock Adjustments.  In the event that during the term of the pledge
          -----------------
any stock dividend, reclassification, readjustment or other changes are declared
or made in the capital structure of Pledgee, all new, substituted and additional
shares or other securities issued by reason of any such change shall be
delivered to and held by the Pledgee under the terms of this Security Agreement
in the same manner as the Shares originally pledged hereunder.  In the event of
substitution of such securities, Pledgor, Pledgee and Pledgeholder shall
cooperate and execute such documents as are reasonable so as to provide for the
substitution of such Collateral and, upon such substitution, references to
"Shares" in this Security Agreement shall include the substituted shares of
capital stock of Pledgor as a result thereof.

     5.   Options and Rights.  In the event that, during the term of this
          ------------------
pledge, subscription Options or other rights or options shall be issued in
connection with the pledged Shares, such rights, Options and options shall be
the property of Pledgor and, if exercised by Pledgor, all new stock or other
securities so acquired by Pledgor as it relates to the pledged Shares then held
by Pledgeholder shall be immediately delivered to Pledgeholder, to be held under
the terms of this Security Agreement in the same manner as the Shares pledged.

     6.   Default.  Pledgor shall be deemed to be in default of the Note and of
          -------
this Security Agreement in the event:

          (a) Payment of principal or interest on the Note shall be delinquent
for a period of 10 days or more; or

          (b) Pledgor fails to perform any of the covenants set forth in the
Option or contained in this Security Agreement for a period of 10 days after
written notice thereof from Pledgee.

          In the case of an event of Default, as set forth above, Pledgee shall
have the right to accelerate payment of the Note upon notice to Pledgor, and
Pledgee shall thereafter be entitled to pursue its remedies under the California
Commercial Code.

     7.   Release of Collateral.  Subject to any applicable contrary rules under
          ---------------------
Regulation G, there shall be released from this pledge a portion of the pledged
Shares held by Pledgeholder hereunder upon payments of the principal of the
Note.  The number of the pledged Shares which shall be released shall be that
number of full Shares which bears the same proportion to the initial number of
<PAGE>

Shares pledged hereunder as the payment of principal bears to the initial full
principal amount of the Note.

     8.   Withdrawal or Substitution of Collateral.  Pledgor shall not sell,
          ----------------------------------------
withdraw, pledge, substitute or otherwise dispose of all or any part of the
Collateral without the prior written consent of Pledgee.

     9.   Term.  The within pledge of Shares shall continue until the payment of
          ----
all indebtedness secured hereby, at which time the remaining pledged stock shall
be promptly delivered to Pledgor, subject to the provisions for prior release of
a portion of the Collateral as provided in paragraph 7 above.

     10.  Insolvency.  Pledgor agrees that if a bankruptcy or insolvency
          ----------
proceeding is instituted by or against it, or if a receiver is appointed for the
property of Pledgor, or if Pledgor makes an assignment for the benefit of
creditors, the entire amount unpaid on the Note shall become immediately due and
payable, and Pledgee may proceed as provided in the case of default.

     11.  Pledgeholder Liability.  In the absence of willful or gross
          ----------------------
negligence, Pledgeholder shall not be liable to any party for any of his acts,
or omissions to act, as Pledgeholder.

     12.  Invalidity of Particular Provisions.  Pledgor and Pledgee agree that
          -----------------------------------
the enforceability or invalidity of any provision or provisions of this Security
Agreement shall not render any other provision or provisions herein contained
unenforceable or invalid.

     13.  Successors or Assigns.  Pledgor and Pledgee agree that all of the
          ---------------------
terms of this Security Agreement shall be binding on their respective successors
and assigns, and that the term "Pledgor" and the term "Pledgee" as used herein
shall be deemed to include, for all purposes, the respective designees,
successors, assigns, heirs, executors and administrators.

     14.  Governing Law.  This Security Agreement shall be interpreted and
          -------------
governed under the internal substantive laws, but not the choice of law rules,
of California.
<PAGE>

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

"PLEDGOR"

                              _________________________________________
                              Signature

                              _________________________________________
                              Print Name

                              Address:   ______________________________

                                         ______________________________

"PLEDGEE"                     RESONATE INC.
                              a Delaware corporation

                              _________________________________________
                              Signature

                              _________________________________________
                              Print Name

                              _________________________________________
                              Title

"PLEDGEHOLDER"
                              _________________________________________
                              Secretary of Resonate Inc.
<PAGE>

                                   EXHIBIT C
                                   ---------

                                     NOTE

$_______________                                                 [City, State]

                                                       __________________, _____

     FOR VALUE RECEIVED, _____________________ promises to pay to Resonate Inc.,
a Delaware corporation (the "Company"), or order, the principal sum of
_______________________ ($_____________), together with interest on the unpaid
principal hereof from the date hereof at the rate of _______________ percent
(____%) per annum, compounded semiannually.

     Principal and interest shall be due and payable on _______________, _____.
Payment of principal and interest shall be made in lawful money of the United
States of America.

     The undersigned may at any time prepay all or any portion of the principal
or interest owing hereunder.

     This Note is subject to the terms of the Option, dated as of
________________.  This Note is secured in part by a pledge of the Company's
Common Stock under the terms of a Security Agreement of even date herewith and
is subject to all the provisions thereof.

     The holder of this Note shall have full recourse against the undersigned,
and shall not be required to proceed against the collateral securing this Note
in the event of default.

     In the event the undersigned shall cease to be an employee, director or
consultant of the Company for any reason, this Note shall, at the option of the
Company, be accelerated, and the whole unpaid balance on this Note of principal
and accrued interest shall be immediately due and payable.

     Should any action be instituted for the collection of this Note, the
reasonable costs and attorneys' fees therein of the holder shall be paid by the
undersigned.

                                            ____________________________________

                                            ____________________________________
<PAGE>

                                 RESONATE INC.

                                2000 STOCK PLAN

                    NOTICE OF GRANT OF STOCK PURCHASE RIGHT

     Unless otherwise defined herein, the terms defined in the Plan shall have
the same defined meanings in this Notice of Grant.

     [Grantee's Name and Address]

     You have been granted the right to purchase Common Stock of the Company,
subject to the Company's Repurchase Option and your ongoing status as a Service
Provider (as described in the Plan and the attached Restricted Stock Purchase
Agreement), as follows:

     Grant Number                       _________________________

     Date of Grant                      _________________________

     Price Per Share                    $________________________

     Total Number of Shares Subject     _________________________
      to This Stock Purchase Right

     Expiration Date:                   _________________________

     YOU MUST EXERCISE THIS STOCK PURCHASE RIGHT BEFORE THE EXPIRATION DATE OR
IT WILL TERMINATE AND YOU WILL HAVE NO FURTHER RIGHT TO PURCHASE THE SHARES.  By
your signature and the signature of the Company's representative below, you and
the Company agree that this Stock Purchase Right is granted under and governed
by the terms and conditions of the 2000 Stock Plan and the Restricted Stock
Purchase Agreement, attached hereto as Exhibit A-1, both of which are made a
part of this document.  You further agree to execute the attached Restricted
Stock Purchase Agreement as a condition to purchasing any shares under this
Stock Purchase Right.

GRANTEE:                                RESONATE INC.

________________________________        _____________________________________
Signature                               By

________________________________        _____________________________________
Print Name                              Title
<PAGE>

                                  EXHIBIT A-1
                                  -----------

                                 RESONATE INC.

                            2000 STOCK OPTION PLAN

                      RESTRICTED STOCK PURCHASE AGREEMENT

     Unless otherwise defined herein, the terms defined in the Plan shall have
the same defined meanings in this Restricted Stock Purchase Agreement.

     WHEREAS the Purchaser named in the Notice of Grant, (the "Purchaser") is a
Service Provider, and the Purchaser's continued participation is considered by
the Company to be important for the Company's continued growth; and

     WHEREAS in order to give the Purchaser an opportunity to acquire an equity
interest in the Company as an incentive for the Purchaser to participate in the
affairs of the Company, the Administrator has granted to the Purchaser a Stock
Purchase Right subject to the terms and conditions of the Plan and the Notice of
Grant, which are incorporated herein by reference, and pursuant to this
Restricted Stock Purchase Agreement (the "Agreement").

     NOW THEREFORE, the parties agree as follows:

     1.   Sale of Stock.  The Company hereby agrees to sell to the Purchaser and
          -------------
the Purchaser hereby agrees to purchase shares of the Company's Common Stock
(the "Shares"), at the per Share purchase price and as otherwise described in
the Notice of Grant.

     2.   Payment of Purchase Price.  The purchase price for the Shares may be
          -------------------------
paid by delivery to the Company at the time of execution of this Agreement of
cash, a check, or some combination thereof.

     3.   Repurchase Option.
          -----------------

          (a) In the event the Purchaser ceases to be a Service Provider for any
or no reason (including death or disability) before all of the Shares are
released from the Company's Repurchase Option (see Section 4), the Company
shall, upon the date of such termination (as reasonably fixed and determined by
the Company) have an irrevocable, exclusive option (the "Repurchase Option") for
a period of sixty (60) days from such date to repurchase up to that number of
shares which constitute the Unreleased Shares (as defined in Section 4) at the
original purchase price per share (the "Repurchase Price"). The Repurchase
Option shall be exercised by the Company by delivering written notice to the
Purchaser or the Purchaser's executor (with a copy to the Escrow Holder) AND, at
the Company's option, (i) by delivering to the Purchaser or the Purchaser's
executor a check in the amount of the aggregate Repurchase Price, or (ii) by
canceling an amount of the Purchaser's
<PAGE>

indebtedness to the Company equal to the aggregate Repurchase Price, or (iii) by
a combination of (i) and (ii) so that the combined payment and cancellation of
indebtedness equals the aggregate Repurchase Price. Upon delivery of such notice
and the payment of the aggregate Repurchase Price, the Company shall become the
legal and beneficial owner of the Shares being repurchased and all rights and
interests therein or relating thereto, and the Company shall have the right to
retain and transfer to its own name the number of Shares being repurchased by
the Company.

          (b)  Whenever the Company shall have the right to repurchase Shares
hereunder, the Company may designate and assign one or more employees, officers,
directors or shareholders of the Company or other persons or organizations to
exercise all or a part of the Company's purchase rights under this Agreement and
purchase all or a part of such Shares.  If the Fair Market Value of the Shares
to be repurchased on the date of such designation or assignment (the "Repurchase
FMV") exceeds the aggregate Repurchase Price of such Shares, then each such
designee or assignee shall pay the Company cash equal to the difference between
the Repurchase FMV and the aggregate Repurchase Price of such Shares.

     4.   Release of Shares From Repurchase Option.
          ----------------------------------------

          (a)  _______________________  percent (______%) of the Shares shall be
released from the Company's Repurchase Option [one year] after the Date of
                                              ----------
Grant and __________________ percent (______%) of the Shares [at the end of each
                                                              ------------------
month thereafter], provided that the Purchaser does not cease to be a Service
----------------
Provider prior to the date of any such release.

          (b)  Any of the Shares that have not yet been released from the
Repurchase Option are referred to herein as "Unreleased Shares."

          (c)  The Shares that have been released from the Repurchase Option
shall be delivered to the Purchaser at the Purchaser's request (see Section 6).

     5.   Restriction on Transfer.  Except for the escrow described in Section 6
          -----------------------
or the transfer of the Shares to the Company or its assignees contemplated by
this Agreement, none of the Shares or any beneficial interest therein shall be
transferred, encumbered or otherwise disposed of in any way until such Shares
are released from the Company's Repurchase Option in accordance with the
provisions of this Agreement, other than by will or the laws of descent and
distribution.

     6.   Escrow of Shares.
          ----------------

          (a)  To ensure the availability for delivery of the Purchaser's
Unreleased Shares upon repurchase by the Company pursuant to the Repurchase
Option, the Purchaser shall, upon execution of this Agreement, deliver and
deposit with an escrow holder designated by the Company (the "Escrow Holder")
the share certificates representing the Unreleased Shares, together with the
stock assignment duly endorsed in blank, attached hereto as Exhibit A-2.  The
Unreleased Shares and stock assignment shall be held by the Escrow Holder,
pursuant to the Joint Escrow Instructions of the Company and Purchaser attached
hereto as Exhibit A-3, until such time as the Company's
<PAGE>

Repurchase Option expires. As a further condition to the Company's obligations
under this Agreement, the Company may require the spouse of Purchaser, if any,
to execute and deliver to the Company the Consent of Spouse attached hereto as
Exhibit A-4.

          (b) The Escrow Holder shall not be liable for any act it may do or
omit to do with respect to holding the Unreleased Shares in escrow while acting
in good faith and in the exercise of its judgment.

          (c) If the Company or any assignee exercises the Repurchase Option
hereunder, the Escrow Holder, upon receipt of written notice of such exercise
from the proposed transferee, shall take all steps necessary to accomplish such
transfer.

          (d) When the Repurchase Option has been exercised or expires
unexercised or a portion of the Shares has been released from the Repurchase
Option, upon request the Escrow Holder shall promptly cause a new certificate to
be issued for the released Shares and shall deliver the certificate to the
Company or the Purchaser, as the case may be.

          (e) Subject to the terms hereof, the Purchaser shall have all the
rights of a shareholder with respect to the Shares while they are held in
escrow, including without limitation, the right to vote the Shares and to
receive any cash dividends declared thereon.  If, from time to time during the
term of the Repurchase Option, there is (i) any stock dividend, stock split or
other change in the Shares, or (ii) any merger or sale of all or substantially
all of the assets or other acquisition of the Company, any and all new,
substituted or additional securities to which the Purchaser is entitled by
reason of the Purchaser's ownership of the Shares shall be immediately subject
to this escrow, deposited with the Escrow Holder and included thereafter as
"Shares" for purposes of this Agreement and the Repurchase Option.

     7.   Legends.  The share certificate evidencing the Shares, if any,  issued
          -------
hereunder shall be endorsed with the following legend (in addition to any legend
required under applicable state securities laws):

          THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN
RESTRICTIONS UPON TRANSFER AND RIGHTS OF REPURCHASE AS SET FORTH IN AN AGREEMENT
BETWEEN THE COMPANY AND THE SHAREHOLDER, A COPY OF WHICH IS ON FILE WITH THE
SECRETARY OF THE COMPANY.

     8.   Adjustment for Stock Split.  All references to the number of Shares
          --------------------------
and the purchase price of the Shares in this Agreement shall be appropriately
adjusted to reflect any stock split, stock dividend or other change in the
Shares that may be made by the Company after the date of this Agreement.

     9.   Tax Consequences.  The Purchaser has reviewed with the Purchaser's own
          ----------------
tax advisors the federal, state, local and foreign tax consequences of this
investment and the transactions contemplated by this Agreement.  The Purchaser
is relying solely on such advisors and not on any statements or representations
of the Company or any of its agents.  The Purchaser understands that
<PAGE>

the Purchaser (and not the Company) shall be responsible for the Purchaser's own
tax liability that may arise as a result of the transactions contemplated by
this Agreement. The Purchaser understands that Section 83 of the Internal
Revenue Code of 1986, as amended (the "Code"), taxes as ordinary income the
difference between the purchase price for the Shares and the Fair Market Value
of the Shares as of the date any restrictions on the Shares lapse. In this
context, "restriction" includes the right of the Company to buy back the Shares
pursuant to the Repurchase Option. The Purchaser understands that the Purchaser
may elect to be taxed at the time the Shares are purchased rather than when and
as the Repurchase Option expires by filing an election under Section 83(b) of
the Code with the IRS within 30 days from the date of purchase. The form for
making this election is attached as Exhibit A-5 hereto.

          THE PURCHASER ACKNOWLEDGES THAT IT IS THE PURCHASER'S SOLE
RESPONSIBILITY AND NOT THE COMPANY'S TO FILE TIMELY THE ELECTION UNDER SECTION
83(b), EVEN IF THE PURCHASER REQUESTS THE COMPANY OR ITS REPRESENTATIVES TO MAKE
THIS FILING ON THE PURCHASER'S BEHALF.

     10.  General Provisions.
          ------------------

          (a) This Agreement shall be governed by the internal substantive laws,
but not the choice of law rules of California.  This Agreement, subject to the
terms and conditions of the Plan and the Notice of Grant, represents the entire
agreement between the parties with respect to the purchase of the Shares by the
Purchaser.  Subject to Section 15(c) of the Plan, in the event of a conflict
between the terms and conditions of the Plan and the terms and conditions of
this Agreement, the terms and conditions of the Plan shall prevail.  Unless
otherwise defined herein, the terms defined in the Plan shall have the same
defined meanings in this Agreement.

          (b) Any notice, demand or request required or permitted to be given by
either the Company or the Purchaser pursuant to the terms of this Agreement
shall be in writing and shall be deemed given when delivered personally or
deposited in the U.S. mail, First Class with postage prepaid, and addressed to
the parties at the addresses of the parties set forth at the end of this
Agreement or such other address as a party may request by notifying the other in
writing.

              Any notice to the Escrow Holder shall be sent to the Company's
address with a copy to the other party hereto.

          (c) The rights of the Company under this Agreement shall be
transferable to any one or more persons or entities, and all covenants and
agreements hereunder shall inure to the benefit of, and be enforceable by the
Company's successors and assigns.  The rights and obligations of the Purchaser
under this Agreement may only be assigned with the prior written consent of the
Company.

          (d) Either party's failure to enforce any provision of this Agreement
shall not in any way be construed as a waiver of any such provision, nor prevent
that party from thereafter enforcing any other provision of this Agreement.  The
rights granted both parties hereunder are
<PAGE>

cumulative and shall not constitute a waiver of either party's right to assert
any other legal remedy available to it.

          (e) The Purchaser agrees upon request to execute any further documents
or instruments necessary or desirable to carry out the purposes or intent of
this Agreement.

          (f) PURCHASER ACKNOWLEDGES AND AGREES THAT THE VESTING OF SHARES
PURSUANT TO SECTION 4 HEREOF IS EARNED ONLY BY CONTINUING SERVICE AS A SERVICE
PROVIDER AT THE WILL OF THE COMPANY (AND NOT THROUGH THE ACT OF BEING HIRED OR
PURCHASING SHARES HEREUNDER).  PURCHASER FURTHER ACKNOWLEDGES AND AGREES THAT
THIS AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREUNDER AND THE VESTING SCHEDULE
SET FORTH HEREIN DO NOT CONSTITUTE AN EXPRESS OR IMPLIED PROMISE OF CONTINUED
ENGAGEMENT AS A SERVICE PROVIDER FOR THE VESTING PERIOD, FOR ANY PERIOD, OR AT
ALL, AND SHALL NOT INTERFERE WITH PURCHASER'S RIGHT OR THE COMPANY'S RIGHT TO
TERMINATE PURCHASER'S RELATIONSHIP AS A SERVICE PROVIDER AT ANY TIME, WITH OR
WITHOUT CAUSE.

     By Purchaser's signature below, Purchaser represents that he or she is
familiar with the terms and provisions of the Plan, and hereby accepts this
Agreement subject to all of the terms and provisions thereof.  Purchaser has
reviewed the Plan and this Agreement in their entirety, has had an opportunity
to obtain the advice of counsel prior to executing this Agreement and fully
understands all provisions of this Agreement.  Purchaser agrees to accept as
binding, conclusive and final all decisions or interpretations of the
Administrator upon any questions arising under the Plan or this Agreement.
Purchaser further agrees to notify the Company upon any change in the residence
indicated in the Notice of Grant.

DATED: __________________________

PURCHASER:                              RESONATE INC.

_________________________________       ____________________________________
Signature                               By

_________________________________       ____________________________________
Print Name                              Title
<PAGE>

                                  EXHIBIT A-2
                                  -----------

                     ASSIGNMENT SEPARATE FROM CERTIFICATE

     FOR VALUE RECEIVED I, _______________________________, hereby sell, assign
and transfer unto _____________________ (__________) shares of the Common Stock
of Resonate Inc., standing in my name of the books of said corporation
represented by Certificate No. _____ herewith and do hereby irrevocably
constitute and appoint _____________________________________________ to transfer
the said stock on the books of the within named corporation with full power of
substitution in the premises.

     This Stock Assignment may be used only in accordance with the Restricted
Stock Purchase Agreement (the "Agreement") between________________________ and
the undersigned dated ______________, _____.

Dated: _______________, _____

                                        Signature:______________________________

     INSTRUCTIONS: Please do not fill in any blanks other than the signature
line.  The purpose of this assignment is to enable the Company to exercise the
Repurchase Option, as set forth in the Agreement, without requiring additional
signatures on the part of the Purchaser.
<PAGE>

                                  EXHIBIT A-3
                                  -----------

                           JOINT ESCROW INSTRUCTIONS

                                                        __________________, ____

Corporate Secretary
Resonate Inc.
385 Moffett Park Drive
Sunnyvale, California 94089

Dear __________:

     As Escrow Agent for both Resonate Inc., a Delaware corporation (the
"Company"), and the undersigned purchaser of stock of the Company (the
"Purchaser"), you are hereby authorized and directed to hold the documents
delivered to you pursuant to the terms of that certain Restricted Stock Purchase
Agreement ("Agreement") between the Company and the undersigned, in accordance
with the following instructions:

     1.   In the event the Company and/or any assignee of the Company (referred
to collectively as the "Company") exercises the Company's Repurchase Option set
forth in the Agreement, the Company shall give to Purchaser and you a written
notice specifying the number of shares of stock to be purchased, the purchase
price, and the time for a closing hereunder at the principal office of the
Company. Purchaser and the Company hereby irrevocably authorize and direct you
to close the transaction contemplated by such notice in accordance with the
terms of said notice.

     2.   At the closing, you are directed (a) to date the stock assignments
necessary for the transfer in question, (b) to fill in the number of shares
being transferred, and (c) to deliver same, together with the certificate
evidencing the shares of stock to be transferred, to the Company or its
assignee, against the simultaneous delivery to you of the purchase price (by
cash, a check, or some combination thereof) for the number of shares of stock
being purchased pursuant to the exercise of the Company's Repurchase Option.

     3.   Purchaser irrevocably authorizes the Company to deposit with you any
certificates evidencing shares of stock to be held by you hereunder and any
additions and substitutions to said shares as defined in the Agreement.
Purchaser does hereby irrevocably constitute and appoint you as Purchaser's
attorney-in-fact and agent for the term of this escrow to execute with respect
to such securities all documents necessary or appropriate to make such
securities negotiable and to complete any transaction herein contemplated,
including but not limited to the filing with any applicable state blue sky
authority of any required applications for consent to, or notice of transfer of,
the securities.
<PAGE>

Subject to the provisions of this paragraph 3, Purchaser shall exercise all
rights and privileges of a shareholder of the Company while the stock is held by
you.

     4.   Upon written request of the Purchaser, but no more than once per
calendar year, unless the Company's Repurchase Option has been exercised, you
shall deliver to Purchaser a certificate or certificates representing so many
shares of stock as are not then subject to the Company's Repurchase Option.
Within 90 days after Purchaser ceases to be a Service Provider, you shall
deliver to Purchaser a certificate or certificates representing the aggregate
number of shares held or issued pursuant to the Agreement and not purchased by
the Company or its assignees pursuant to exercise of the Company's Repurchase
Option.

     5.   If at the time of termination of this escrow you should have in your
possession any documents, securities, or other property belonging to Purchaser,
you shall deliver all of the same to Purchaser and shall be discharged of all
further obligations hereunder.

     6.   Your duties hereunder may be altered, amended, modified or revoked
only by a writing signed by all of the parties hereto.

     7.   You shall be obligated only for the performance of such duties as are
specifically set forth herein and may rely and shall be protected in relying or
refraining from acting on any instrument reasonably believed by you to be
genuine and to have been signed or presented by the proper party or parties.
You shall not be personally liable for any act you may do or omit to do
hereunder as Escrow Agent or as attorney-in-fact for Purchaser while acting in
good faith, and any act done or omitted by you pursuant to the advice of your
own attorneys shall be conclusive evidence of such good faith.

     8.   You are hereby expressly authorized to disregard any and all warnings
given by any of the parties hereto or by any other person or corporation,
excepting only orders or process of courts of law, and are hereby expressly
authorized to comply with and obey orders, judgments or decrees of any court.
In case you obey or comply with any such order, judgment or decree, you shall
not be liable to any of the parties hereto or to any other person, firm or
corporation by reason of such compliance, notwithstanding any such order,
judgment or decree being subsequently reversed, modified, annulled, set aside,
vacated or found to have been entered without jurisdiction.

     9.   You shall not be liable in any respect on account of the identity,
authorities or rights of the parties executing or delivering or purporting to
execute or deliver the Agreement or any documents or papers deposited or called
for hereunder.

     10.  You shall not be liable for the outlawing of any rights under the
statute of limitations with respect to these Joint Escrow Instructions or any
documents deposited with you.

     11.  You shall be entitled to employ such legal counsel and other experts
as you may deem necessary properly to advise you in connection with your
obligations hereunder, may rely upon the advice of such counsel, and may pay
such counsel reasonable compensation therefor.
<PAGE>

     12.  Your responsibilities as Escrow Agent hereunder shall terminate if you
shall cease to be an officer or agent of the Company or if you shall resign by
written notice to each party.  In the event of any such termination, the Company
shall appoint a successor Escrow Agent.

     13.  If you reasonably require other or further instruments in connection
with these Joint Escrow Instructions or obligations in respect hereto, the
necessary parties hereto shall join in furnishing such instruments.

     14.  It is understood and agreed that should any dispute arise with respect
to the delivery and/or ownership or right of possession of the securities held
by you hereunder, you are authorized and directed to retain in your possession
without liability to anyone all or any part of said securities until such
disputes shall have been settled either by mutual written agreement of the
parties concerned or by a final order, decree or judgment of a court of
competent jurisdiction after the time for appeal has expired and no appeal has
been perfected, but you shall be under no duty whatsoever to institute or defend
any such proceedings.

     15.  Any notice required or permitted hereunder shall be given in writing
and shall be deemed effectively given upon personal delivery or upon deposit in
the United States Post Office, by registered or certified mail with postage and
fees prepaid, addressed to each of the other parties thereunto entitled at the
following addresses or at such other addresses as a party may designate by ten
days' advance written notice to each of the other parties hereto.

          COMPANY:            Resonate Inc.
                              385 Moffett Park Drive
                              Sunnyvale, California 94089

          PURCHASER:          _________________________________
                              _________________________________
                              _________________________________

          ESCROW AGENT:       Corporate Secretary
                              Resonate Inc.
                              385 Moffett Park Drive
                              Sunnyvale, California 94089

     16.  By signing these Joint Escrow Instructions, you become a party hereto
only for the purpose of said Joint Escrow Instructions; you do not become a
party to the Agreement.

     17.  This instrument shall be binding upon and inure to the benefit of the
parties hereto, and their respective successors and permitted assigns.
<PAGE>

     18.  These Joint Escrow Instructions shall be governed by, and construed
and enforced in accordance with, the internal substantive laws, but not the
choice of law rules, of California.

                                        Very truly yours,

                                        RESONATE INC.

                                        _____________________________________
                                        By

                                        _____________________________________
                                        Title

                                        PURCHASER:

                                        _____________________________________
                                        Signature

                                        _____________________________________
                                        Print Name

ESCROW AGENT:

_____________________________________
Corporate Secretary
<PAGE>

                                  EXHIBIT A-4
                                  -----------

                               CONSENT OF SPOUSE

     I, _________________________, spouse of ________________________, have read
and approve the foregoing Restricted Stock Purchase Agreement (the "Agreement").
In consideration of the Company's grant to my spouse of the right to purchase
shares of Resonate Inc., as set forth in the Agreement, I hereby appoint my
spouse as my attorney-in-fact in respect to the exercise of any rights under the
Agreement and agree to be bound by the provisions of the Agreement insofar as I
may have any rights in said Agreement or any shares issued pursuant thereto
under the community property laws or similar laws relating to marital property
in effect in the state of our residence as of the date of the signing of the
foregoing Agreement.

Dated: ____________________, _____

                              __________________________________________
                              Signature of Spouse
<PAGE>

                                  EXHIBIT A-5
                                  -----------

                         ELECTION UNDER SECTION 83(b)

                     OF THE INTERNAL REVENUE CODE OF 1986

The undersigned taxpayer hereby elects, pursuant to Section 83(b) of the
Internal Revenue Code of 1986, as amended, to include in taxpayer's gross income
for the current taxable year the amount of any compensation taxable to taxpayer
in connection with his or her receipt of the property described below:

1.   The name, address, taxpayer identification number and taxable year of the
     undersigned are as follows:

     NAME:                         TAXPAYER:                SPOUSE:

     ADDRESS:

     IDENTIFICATION NO.:           TAXPAYER:                SPOUSE:

     TAXABLE YEAR:

2.   The property with respect to which the election is made is described as
     follows: _______ shares (the "Shares") of the Common Stock of Resonate Inc.
     (the "Company").

3.   The date on which the property was transferred is: ________________, _____.

4.   The property is subject to the following restrictions:

     The Shares may be repurchased by the Company, or its assignee, upon certain
     events.  This right lapses with regard to a portion of the Shares based on
     the continued performance of services by the taxpayer over time.

5.   The fair market value at the time of transfer, determined without regard to
     any restriction other than a restriction which by its terms will never
     lapse, of such property is: $__________.

6.   The amount (if any) paid for such property is:  $___________.

The undersigned has submitted a copy of this statement to the person for whom
the services were performed in connection with the undersigned's receipt of the
above-described property.  The transferee of such property is the person
performing the services in connection with the transfer of said property.

The undersigned understands that the foregoing election may not be revoked
--------------------------------------------------------------------------
except with the consent of the Commissioner.
-------------------------------------------

Dated: _________________, ____      _______________________________________
                                    Taxpayer

The undersigned spouse of taxpayer joins in this election.

Dated: _________________, ____      _______________________________________
                                    Spouse of Taxpayer<PAGE>

                                                                    EXHIBIT 10.6

                          MOFFETT PARK OFFICE CENTER

                                     LEASE

                                By and Between

                            Cilker Revocable Trust
                         U.T.A. dated October 9, 1990
                                  ("Lessor")

                                      and

                   Resonate, Inc., a California Corporation
                                  ("Lessee")

                 For the 15,915 Rentable Square Foot Premises
                 Located at 385 Moffett Park Drive, Suite 210,
                          Sunnyvale, California 94089

                                       i
<PAGE>

                               Table of Contents

<TABLE>
<S>                                                                            <C>
1  BASIC LEASE PROVISIONS.....................................................  1

 1.1  Parties.................................................................  1
 1.2   Premises...............................................................  1
 1.3   Building...............................................................  1
 1.4   Use....................................................................  1
 1.5   Term...................................................................  2
 1.6   Base Rent..............................................................  2
 1.7   Base Rent Increase.....................................................  2
 1.8   Rent Paid Upon Execution...............................................  2
 1.9   Security Deposit.......................................................  2
 1.10  Lessee's Share of Operating Expense Increase...........................  2
 1.11  Tenant Improvements....................................................  2
 1.12  Load Factor............................................................  2
 1.13  Additional Rent........................................................  3

2  PREMISES, BUILDING, OFFICE BUILDING PROJECT AND COMMON AREAS...............  3

 2.1   Premises...............................................................  3
 2.2   Vehicle Parking........................................................  3
 2.3   Common Areas - Definition..............................................  3
 2.4   Common Area - Rules and Regulations....................................  4
 2.5   Common Area - Changes..................................................  4

3  TERM.......................................................................  5

 3.1   Term...................................................................  5

4  RENT.......................................................................  5

 4.1   Base Monthly Rent......................................................  5
 4.2   Operating Expenses.....................................................  6

5  USE........................................................................  8

 5.1   Use....................................................................  8
 5.2   Lessee's Compliance with Law...........................................  8
 5.3   Condition of Premises..................................................  9
 5.4   Hazardous Material.....................................................  9

6  MAINTENANCE, REPAIRS, ALTERATIONS AND COMMON AREA SERVICES................. 11

 6.1   Lessor's Obligations................................................... 12
 6.2   Lessee's Obligations................................................... 12
 6.3   Alterations and Additions.............................................. 13
 6.4   Utility Additions...................................................... 15

7  INSURANCE; INDEMNITY....................................................... 15

 7.1   Liability Insurance - Lessee........................................... 15
 7.2   Property Insurance - Lessee............................................ 16
 7.3   Insurance - Lessor..................................................... 16
 7.4   Insurance Policies..................................................... 16
 7.5   Waiver of Subrogation.................................................. 17
 7.6   Indemnity.............................................................. 17
 7.7   Exemption of Lessor from Liability..................................... 18
 7.8   No Representation of Adequate Coverage................................. 18

8  DAMAGE OR DESTRUCTION...................................................... 19

 8.1   Definitions............................................................ 19
 8.2   Premises Damage; Premises Partial Damage............................... 19
 8.3   Premises Total Destruction; Office Building Project Total Destruction.. 20
 8.4   Damage Near End of Term................................................ 21
 8.5   Abatement of Rent; Lessee's Remedies................................... 21
</TABLE>

                                      ii
<PAGE>

                               Table of Contents

<TABLE>
<S>                                                                            <C>
 8.6   Termination............................................................ 21
 8.7   Waiver................................................................. 22

9  REAL PROPERTY TAXES........................................................ 22

 9.1   Payment of Taxes....................................................... 22
 9.2   Additional Improvements................................................ 22
 9.3   Definition of Real Property Tax........................................ 22
 9.4   Joint Assessment....................................................... 23
 9.5   Personal Property Taxes................................................ 23

10  UTILITIES AND SERVICES.................................................... 23

 10.1  Services Provided by Lessor............................................ 23
 10.2  Services Exclusive to Lessee........................................... 24
 10.3  Hours of Service....................................................... 24
 10.4  Excess Usage by Lessee................................................. 24
 10.5  Interruptions.......................................................... 25

11  OPTION TO EXTEND.......................................................... 25

12  ASSIGNMENT AND SUBLETTING................................................. 25

 12.1  Lessor's Consent Required.............................................. 25
 12.2  Lessee Affiliate....................................................... 26
 12.3  Terms and Conditions Applicable to Assignment and Subletting........... 26
 12.4  Additional Terms and Conditions Applicable to Subletting............... 28
 12.5  Lessor's Expenses...................................................... 29
 12.6  Conditions to Consent.................................................. 29

13  DEFAULT; REMEDIES......................................................... 30

 13.1  Default................................................................ 31
 13.2  Remedies............................................................... 32
 13.3  Default by Lessor...................................................... 32
 13.4  Late Charges........................................................... 32

14  CONDEMNATION.............................................................. 32

15  BROKER'S FEE.............................................................. 33

16  ESTOPPEL CERTIFICATE...................................................... 34

17  LESSOR'S LIABILITY........................................................ 34

18  SEVERABILITY.............................................................. 35

19  INTEREST ON PAST-DUE OBLIGATIONS.......................................... 35

20  TIME OF ESSENCE........................................................... 35

21  ADDITIONAL RENT........................................................... 35

22  INCORPORATION OF PRIOR AGREEMENTS; AMENDMENTS............................. 35

23  NOTICES................................................................... 36

24  WAIVERS................................................................... 36

25  RECORDING................................................................. 36

26  NO RIGHT TO HOLD OVER..................................................... 36
</TABLE>

                                      iii
<PAGE>

                               Table of Contents

<TABLE>
<S>                                                                            <C>
27  CUMULATIVE REMEDIES....................................................... 37

28  COVENANTS AND CONDITIONS.................................................. 37

29  BINDING EFFECT; CHOICE OF LAW............................................. 37

30  SUBORDINATION............................................................. 37

31  ATTORNEYS' FEES........................................................... 38

 31.1  Attorneys' Fees........................................................ 38
 31.2  Reimbursement.......................................................... 38
 31.3  Default................................................................ 38

32  LESSOR'S ACCESS........................................................... 38

 32.1  Entry Onto Premises.................................................... 38
 32.2  Abatement of Rent...................................................... 39
 32.3  Emergency.............................................................. 39

33  AUCTIONS.................................................................. 39

34  SIGNS..................................................................... 39

35  MERGER.................................................................... 40

36  CONSENTS.................................................................. 40

37  GUARANTOR................................................................. 40

38  QUIET POSSESSION.......................................................... 40

39  SECURITY MEASURES - LESSOR'S RESERVATIONS................................. 40

 39.1  Security Measures...................................................... 40
 39.2  Lessor's Reservations.................................................. 41

40  EASEMENTS................................................................. 41

 40.1  Lessor's Reservations.................................................. 41
 40.2  Obstruction............................................................ 41

41  PERFORMANCE UNDER PROTEST................................................. 41

42  AUTHORITY................................................................. 42

43  NO OFFER.................................................................. 42

44  LENDER MODIFICATION....................................................... 42

45  MULTIPLE PARTIES.......................................................... 42

46  FORCE MAJEURE............................................................. 42

47  TENANT IMPROVEMENTS....................................................... 43

EXHIBIT A  THE PREMISES....................................................... 45

EXHIBIT B  LEGAL DESCRIPTION OF BUILDING...................................... 46

EXHIBIT C  RULES AND REGULATIONS.............................................. 47

EXHIBIT D  PARKING RULES...................................................... 49
</TABLE>

                                      iv
<PAGE>

                               Table of Contents

<TABLE>
<S>                                                                            <C>
EXHIBIT E  FINAL PLANS AND SPECIFICATIONS....................................  50

EXHIBIT F  COMMENCEMENT DATE MEMORANDUM......................................  51

EXHIBIT G  JANITORIAL SERVICES...............................................  52
</TABLE>

                                       v
<PAGE>

          1.    BASIC LEASE PROVISIONS.
                ----------------------

          1.1   Parties.  This Lease, dated, for reference purposes only, as of
                -------
     November 2, 1999 is made by and between CILKER REVOCABLE TRUST U.T.A. dated
     October 9, 1990, herein called "Lessor", and RESONATE, INC., a California
     Corporation, herein called "Lessee".

          1.2   Premises.  Suite Number 210, consisting of approximately
                --------
     fourteen thousand two hundred ten (14,210) usable square feet (USF)
     measured from the centerline of shared walls and to the outside of the
     outside walls; fifteen thousand nine hundred fifteen (15,915) rentable
     square feet (RSF) more or less, including a twelve percent (12%) load
     factor, as defined in Paragraph 1.12.

          Lessee shall have the option to expand the Premises (the "Expansion
     Option") to include (i) Suite No. 105 consisting of approximately 13,624
     rentable square feet, (ii) Suite No. 200 consisting of approximately 24,080
     rentable square feet or (iii) both, on the same terms and conditions of the
     Lease (including the same Base Monthly Rent per rentable square foot),
     effective February 1, 2001, by giving Lessor written notice thereof no
     later than December 1, 2000. Then the total usage square feet will be forty
     seven thousand eight hundred seventy four (47,874), more or less, and total
     rentable square feet is fifty three thousand six hundred nineteen (53,619),
     more or less.

          The Premises for Suite #210 is shown as Exhibit A: The Premises.

          1.3   Building.  Commonly described as being located at 385 Moffett
                --------
     Park Drive in the City of Sunnyvale, County of Santa Clara, State of
     California as defined in Paragraph 2 and on Exhibit B hereto (the
     Building), as measured to the dripline of the outside walls. The total
     rentable square feet of the Building is seventy nine thousand four hundred
     eighty (79,480), more or less.

          1.4   Use.  The Premises shall be used for general office and
                ---
     engineering functions and for no other purposes without the prior written
     consent of Lessor, subject to Paragraph 6.

          1.5   Term.  Four (4) years commencing on the later of December 15,
                ----   --------------
     1999 or the completion date of the Tenant Improvements (Commencement Date)
     and ending on November 30, 2003 (Termination Date) in accordance with
     Exhibit F (Commencement Date Memorandum).

                                     - 1 -
<PAGE>

          1.6   Base Rent.  Forty five thousand and thirty nine Dollars and
                ---------
     fourty five cents($45,039.45) per month, payable on the first day of each
     month, per Paragraph 4.1, commencing on the Commencement Date, on or about
     December 15, 1999.

          1.7   Base Rent Increase.  Monthly Base Rent payable under Paragraph
                ------------------
     1.6 above shall be adjusted as provided in Paragraph 4.1 below.

          1.8   Rent Paid Upon Execution.  Forty five  thousand and thirty nine
                ------------------------
     Dollars and fourty five cents($45,039.45) for the first month of the Term.

          1.9   Security Deposit.  One (1) month rent of Forty five thousand and
     thirty nine Dollars and fourty five cents($45,039.45) due December 15,
     1999. In the event Lessee exercises the Expansion Option with respect to
     Suite 105, the Security Deposit shall be increased by $39,839.83 effective
     February 1, 2001. In the event Lessee exercises the Expansion Option with
     respect to Suite 200, the Security Deposit shall be increased by $70,415.68
     effective February 1, 2001.

          1.10  Lessee's Share of Operating Expenses.  Twenty percent (20%)
                ------------------------------------
     through January 30, 2001, with a proportionate increase in the event the
     Premises are expanded pursuant to the Expansion Option.

          1.11  Tenant Improvements.  The Tenant Improvement allowance for Suite
                -------------------
     210 shall be equal to the total amount set forth in the estimate attached
     hereto as Exhibit H, which total amount shall be paid by Lessor and Lessee
     as set forth in Exhibit H.

          1.12  Load Factor.  Based on the Total Square Foot Space of the lobby,
                -----------
     common hallways, elevator, common bathrooms, utility rooms, janitorial,
     storage rooms and other shared space expressed as a percentage of the total
     Building area measured to the outer surface of the outside walls.  For this
     building, the load factor is calculated to be twelve percent (12%).

          1.13  Additional Rent.  The additional rent for HVAC that exceeds the
                ---------------
     hours of service provided in Paragraph 10.3 is covered in Paragraph 10.4.

          2.    PREMISES, BUILDING, OFFICE BUILDING PROJECT PARKING AND COMMON
                --------------------------------------------------------------
AREAS.
-----

                                     - 2 -
<PAGE>

          2.1   Premises.  The Premises are a portion of a building, herein
                --------
     sometimes referred to as the "Building" identified in Paragraph 1.3 of the
     Basic Lease Provisions.  "Building" shall include adjacent parking
     structures used in connection therewith.  The Premises, the Building, the
     Common Areas, the land upon which the same are located, along with all
     other improvements thereon or thereunder, are herein collectively referred
     to as the "Office Building Project".  Lessor hereby leases to Lessee and
     Lessee leases from Lessor for the term, at the rental, and upon all of the
     conditions set forth herein, the real property referred to in the Basic
     Lease Provisions, Paragraph 1.2, as the "Premises", including rights to the
     Common Areas as hereinafter specified.

          2.2   Vehicle Parking.  So long as Lessee is not in default beyond
                ---------------
     applicable notice and cure period, and subject to the rules and regulations
     attached hereto as Exhibit D, and as established by Lessor from time to
     time, Lessee shall be entitled to use fifty seven (57) parking spaces in
     the Common Area of the Office Building Project. If Lessee knowingly
     commits, permits or allows any of the prohibited activities described in
     the Lease or the rules then in effect, then Lessor shall have the right,
     after making reasonable effort to notify Lessee of the prohibited activity,
     in addition to such other rights and remedies that it may have, to remove
     or tow away any vehicle involved in such prohibited activity, or otherwise
     take action to cure such prohibited activity, and charge the cost to
     Lessee, which cost shall be immediately payable upon demand by Lessor.

          2.3   Common Areas - Definition.  The term "Common Areas" is defined
                -------------------------
     as all areas and facilities outside the Premises and within the exterior
     boundary line of the Office Building Project that are provided and
     designated by the Lessor from time to time for the general nonexclusive use
     of Lessor, Lessee and of other lessees of the Office Building Project and
     their respective employees, suppliers, shippers, customers and invitees,
     including but not limited to common entrances, parking areas to the extent
     not otherwise prohibited by this Lease, roadways and walks, walkways,
     parkways, ramps, driveways, striping, bumpers, irrigation systems, and
     Common Area lighting facilities and landscaped areas.

          2.4   Common Area - Rules and Regulations.  Lessee agrees to abide by
                -----------------------------------
     and conform to the rules and regulations attached hereto as Exhibit C with
     respect to the Office Building Project and Common Areas and to cause its
     employees, suppliers, shippers, customers, and invitees to so abide and
     conform to such rules and

                                     - 3 -
<PAGE>

     regulations. Lessor or such other person(s) as Lessor may appoint shall
     have the exclusive control and management of the Common Areas and shall
     have the right to enforce said rules and regulations and may, from time to
     time, reasonably modify or amend and enforce said rules and regulations.

          2.5   Common Areas - Changes.  Provided the following changes do not
                ----------------------
     significantly interfere with Lessee's business and are not inconsistent
     with other first-class office buildings in the vicinity, Lessor shall have
     the right in Lessor's sole discretion, from time to time:

                (a)  To make changes to the Building exterior and Common Areas,
     including, without limitation, changes in the location, size, shape,
     number, and appearance thereof, including but not limited to the windows,
     air shafts, driveways, entrances, parking spaces, parking areas, loading
     and unloading areas, ingress, egress, direction of traffic, landscaped
     areas, walkways and the outside walls and the roof of the Building;

                (b)  To close temporarily any of the Common Areas for
     maintenance purposes so long as reasonable access to the Premises remains
     available;

                (c)  To designate other land and improvements outside the
     boundaries of the Office Building Project to be a part of the Common Areas,
     provided that such other land and improvements have a reasonable and
     functional relationship to the Office Building Project and may increase the
     financial obligations of Lessee under this Lease with Lessee's consent,
     which shall not be unreasonably withheld;

                (d)  To add additional improvements to the Common Areas;

                (e)  To use the Common Areas while engaged in making additional
     improvements, repairs or alterations to the Office Building Project, or any
     portion thereof;

                (f)  To do and perform such other acts and make such other
     changes in, to or with respect to the Common Areas and Office Building
     Project as Lessor may, in the exercise of sound business judgment, deem to
     be appropriate.

                (g)  Lessor shall use its best efforts to minimize disruption to
     Lessee's business.

          3.    TERM.
                ----

                                     - 4 -
<PAGE>

          3.1   Term.  The Term and Commencement Date of this Lease shall be as
                ----
     specified in Paragraph 1.5 of the Basic Lease Provisions.

          4.    RENT.
                ----

          4.1   Base Monthly Rent.  Lessee shall pay to Lessor the Base Monthly
                -----------------
     Rent for the Premises set forth in Paragraph 1.6 of the Basic Lease
     Provisions and this Paragraph 4.1 herein, without offset or deduction,
     payable on the first day of each month (or in the event of a partial month,
     on the first day of such partial month), except for the deduction described
     in Paragraph 1.11.  Lessee shall pay Lessor upon execution hereof the
     advance Base Rent described in Paragraph 1.6 of the Basic Lease Provisions.

     Rent for any period during the term hereof which is for less than one month
     shall be prorated based upon the actual number of days of the calendar
     month involved.  Rent shall be payable in lawful money of the United States
     to Lessor at the address stated herein or to such other persons or at such
     other places as Lessor may designate in writing.

     Tenant shall pay the Base Monthly Rent on the amount and for the months set
     forth below, and otherwise as provided in this Paragraph 4.1.

          Months   1 - 12         12/01/99-11/30/00- $ 45,039.45
          Months  13 - 14         12/01/00-01/30/01- $ 46,539.26
          Months  15 - 24         02/01/01-11/30/01- $ 46,539.26
          Months  25 - 36         12/01/01-11/30/02- $ 48,089.02
          Months  37 - 48         12/01/02-11/30/03- $ 49,690.39
          Months  49 - 60         12/01/03-11/30/04-   100% Fair Market Rate
          Months  61 - 72         12/01/04-11/30/05-   Inc. by 3.33%
          Months  73 - 84         12/01/05-11/30/06-   100% Fair Market Rate

          In the event that Lessee exercises the Expansion Option in month 15
     with respect to Suites 105 or 200, the same Base Monthly Rent per square
     foot shall apply to each Suite for which the Expansion Option is elected.

          4.2   Operating Expenses.  Lessee shall pay to Lessor during the term
                ------------------
     hereof, in addition to the Base Rent, Lessee's Share of Operating Expenses,
     as defined in Paragraph 1.10, of any increases in total Operating Expenses
     for any "Comparison Year", as defined in Paragraph 4.2(d) herein over the
     Operating Expenses for the Base Year, as hereinafter defined, during each

                                     - 5 -
<PAGE>

     calendar year, following the Base Year, of the term of this Lease, in
     accordance with the following provisions:

                (a)     "Lessee's Share of Operating Expenses" is defined in
     Paragraph 1.10 of the Base Lease Provisions.  Lessee's Share of Operating
     Expenses has been established as a percentage determined by dividing the
     approximate rentable square footage of the Premises by the approximate
     total rentable square footage of the Building.  Using this same method of
     determination, the Lessee's Share of Operating Expenses may be redetermined
     by Lessor in the event of a change in the rentable square footage in the
     Building.

                (b)     "Operating Expenses" is defined, for purposes of this
     Lease, to include all costs, if any, incurred by Lessor in the exercise of
     its reasonable discretion, for:

                (i)     The operation, repair, maintenance, and replacement (of
     a non-capital nature), in neat, clean, safe, good order and condition, of
     the Common Areas;

                (ii)    Trash disposal, landscaping, irrigation, replacement of
     plants and trees, janitorial services as delineated in Exhibit F, and
     supplies, sealing and striping the parking area, window and door washing,
     service door and window seals, roof repairs, reserve for painting, sealing
     and striping, and security services;

                (iii)   Any other service to be provided by Lessor that is
     elsewhere in this Lease defined to be an "Operating Expense";

                (iv)    The cost of the premiums for all insurance policy to be
     maintained by Lessor under Paragraph 8 hereof;

                (v)     The amount of the real property taxes to be paid by
     Lessor under Paragraph 9.1 hereof;

                (vi)    The cost of utilities, including water, sewer, gas,
     electricity, and other publicly mandated services to the Building,
     including fire detection systems, fire sprinkler systems and security
     systems;

                (vii)   The cost of monitoring of environmental matters and the
     building HVAC management system;

                (viii)  Replacing, adding, or removing any improvement for
     better security, safety, increased energy efficiency, or as mandated by any
     governmental agency after the Commencement Date, and any repairs or
     removals

                                     - 6 -
<PAGE>

     necessitated thereby, including seismic upgrades, amortized over its useful
     life according to federal income tax regulations or guidelines for
     depreciation thereof (including interest on the unamortized balance as is
     then reasonable in the judgment of Lessor's accountants, provided, however,
     costs incurred to correct violations by Lessor of any law, rule, order or
     regulation prior to the Commencement Date shall not be included as an
     Operating Expense;

                (ix)    Replacements of equipment or improvements to include
     HVAC equipment and monitoring systems, elevator maintenance, plumbing,
     including fire sprinklers, supplies, materials and equipment and tools;
     including maintenance, cost and upkeep of all parking and common areas;
     expenses incurred in an amount necessary to reduce direct expenses; and

                (x)  A management fee attributable to the operation of the
     Office Building Project.

                (c)     Lessee's share of additional rent for capital
     improvements to the common area, grounds, and for improved efficiency and
     appearance of the building, to be amortized by normal accounting practice
     plus interest.

                (d)     "Base Year" is defined, for purposes of this Lease, to
     be the period of ninety-one (91) days (December 1, 1999 through February
     29, 2000 annualized for 365 days).

                (e)     "Comparison Year" is defined, for purposes of this
     Lease, as each 12 months period starting March 1, 2000, during the term of
     this Lease.

                (f)      Lessee's Share of the Operating Expenses identified in
     Paragraphs 4.2(b), 4,2(d) and 4.2(e) shall be payable on a annual or semi-
     annual basis by Lessee after a statement of actual expenses is presented to
     Lessee by Lessor. Lessee shall have the right for one hundred and eighty
     (180) days from receipt of such statement to audit Lessor's books and
     records to verify Lessor's calculations.

                (g)     Notwithstanding the foregoing, Operating Expenses shall
     not include and Lessee shall in no event have any obligation to perform or
     to pay for the following (collectively, "Costs"): (a) Costs occasioned by
     the act, omission or violation of any law by Lessor or any other occupant
     of the Building, or their respective agents,

                                     - 7 -
<PAGE>

     employees or contractors; (b) Costs occasioned by casualty or condemnation;
     (c) Costs of any renovation, improvement, painting or redecorating of any
     portion of the Building not made available for Lessee's use; (d) Costs
     incurred in connection with marketing or advertising the Building, or the
     violation by Lessor or any occupant of the Building (other than Lessee) of
     the terms and conditions of any lease or other agreement; (e) Costs
     incurred in connection with the presence of any Hazardous Material, except
     to the extent caused by the release or emission of the Hazardous Material
     in question by Lessee; (f) Costs which could properly be capitalized under
     generally accepted accounting principles, except those set forth in
     subsections (viii) and (c) of this Section 4.2.

          5.    USE.
                ---

          5.1   Use.  The Premises shall be used and occupied only for the
                ---
     purpose set forth in Paragraph 1.4 of the Basic Lease Provisions or any
     other use which is reasonably comparable to that use and for no other
     purpose.

          5.2   Lessee's Compliance with Law.  Except as otherwise provided in
                ----------------------------
     this Lease, Lessee shall, at Lessee's expense, promptly comply with all
     applicable statutes, ordinances, rules, regulations, orders, the
     requirements of that certain Declaration of Protective Covenants Moffett
     Industrial Park No. 1 (a copy of which is attached hereto as Exhibit G, and
     requirements of any fire insurance underwriters or rating bureaus, now in
     effect or which may hereafter come into effect, whether or not they reflect
     a change in policy from that now existing, during the term or any part of
     the term hereof, relating in any manner to the Premises and the occupation
     and use by Lessee of the Premises.  Lessee shall conduct Lessee's business
     in a lawful manner and shall not use or permit the use of the Premises or
     the Common Areas in any manner that will tend to create waste or nuisance
     or shall tend to disturb other occupants of the Office Building Project.

          5.3   Condition of Premises.  Lessee accepts the Premises and the
                ---------------------
     Office Building Project in their condition existing as of the Commencement
     Date or the date that Lessee takes possession of the Premises (exclusive of
     any latent defects), whichever is earlier, subject to all applicable
     zoning, municipal, county and state laws, ordinances and regulations
     governing and regulating the use of the Premises, and accepts this Lease
     subject thereto and to all matters disclosed thereby and by any

                                     - 8 -
<PAGE>

     exhibits attached hereto. Lessee acknowledges that it has satisfied itself
     by its own independent investigation that the Premises (exclusive of any
     latent defects) are suitable for its intended use, and that neither Lessor
     nor Lessor's agent or agents has made any representation or warranty as to
     the present or further suitability of the Premises, Common Areas, or Office
     Building Project for the conduct of Lessee's business; provided, however,
     Lessor warrants that all plumbing, electrical, mechanical, elevator,
     structural and roof systems shall be in good operating condition on the
     Commencement Date. Notwithstanding any provision to the contrary in this
     Lease, Lessor represents and warrants that as of the Commencement Date the
     Premises (other than the Tenant Improvements to be constructed by Lessee)
     and the Common Areas shall be in compliance with all applicable laws,
     rules, order, regulations and orders, including without limitation, all
     applicable requirements of the Americans with Disabilities Act (ADA) of
     1990 (42 U.S.C. 12101, et. seq.).
                            -------

          5.4   Hazardous Material.
                ------------------

                (a)  Lessee shall not engage in any activities upon or in the
     Office Building Project, nor bring onto, create, or dispose of upon or in
     the Premises or Office Building Project, any Hazardous Material other than
     those in the forms and quantities used in normal office use and building
     management.

                (b)  Lessee shall not engage in any activity upon or in the
     Premises that violates any federal, state or local laws, rules or
     regulations pertaining to Hazardous Material.  Lessee shall promptly, at
     Lessee's sole cost and expense, take all investigatory or remedial actions
     requested or ordered for clean-up of any contamination of the Premises
     created or suffered by Lessee. Provided, however, Lessee shall not be
     liable for such action or clean up if suffered by Lessee as a result of
     Lessor's or other tenants' actions.  Lessee shall comply with any and all
     requirements related to handling, use, storage and disposal of Hazardous
     Materials.

                (c)  Lessee shall indemnify, defend and hold harmless Lessor,
     Lessor's agents, employees, servants, and lenders, from any and all claims,
     losses, liability, demands, damages, costs, offsets, lawsuits, judgments,
     award and expenses, including, but not limited to, attorneys' fees arising
     out of or in connection with any breach of Lessee's obligations under this
     Paragraph 5.4.

                                     - 9 -
<PAGE>

                (d)  Lessee's obligations under this Paragraph 5.4 shall survive
     the ending, termination, and cancellation of this Lease, and no
     termination, cancellation or release agreement entered into by Lessor and
     Lessee shall release Lessee from Lessee's obligations under this Paragraph
     5.4 unless any such agreement expressly sets forth Lessor's intention to so
     release Lessee.

                (e)  The term "Hazardous Material" means any chemical substance:

                     (i)   the presence of which requires investigation,
          regulation or remediation under any federal, state or local statute,
          regulation, ordinance, order, action, policy or common law; or

                     (ii)   which is or becomes defined as a "hazardous waste"
          or "hazardous substance" under any federal, state or local statute,
          regulation or ordinance or amendments thereto including, without
          limitation, the Comprehensive Environmental Response, Compensation and
          Liability Act (42 U.S.C. Section 9601 et. seq.) and or the Resource
          Conservation and Recovery Act (42 U.S.C. Section 6901 et. seq.)

                     (iii)  which is toxic, explosive, corrosive, flammable,
          infectious, radioactive, carcinogenic, mutagenic or otherwise
          hazardous and is or becomes regulated by any governmental authority,
          agency, department, commission, board, agency or instrumentality of
          the United States, the State of California or any political
          subdivision thereof; or

                     (iv)   the presence of which on the Premises poses or
          threatens to pose a hazard to the health or safety of persons on or
          about the Premises; or

                      (v)   without limitation which contains gasoline, diesel
          fuel or other petroleum hydrocarbons; or

                      (vi)  without limitation which contains polychlorinated
          bipheynols (PCBs), or asbestos; or

                     (vii)  which is considered by any government
          authority to be harmful, dangerous, toxic, flammable or otherwise
          deserving of special care.

                (f)  Lessor shall indemnify, defend and hold harmless Lessee,
     Lessee's agents, employees, and lenders, from any and all claims, losses,
     liability, demands,

                                    - 10 -
<PAGE>

     damages, costs, offsets, lawsuits, judgments, award and expenses,
     including, but not limited to, attorneys' fees arising out of or in
     connection with any Hazardous Material in, on, about or under the Premises
     or the Office Building Project, to the extent that the presence of such
     Hazardous Materials was caused by Lessor or Lessor's Agents (defined
     below). Lessor shall comply with any requirements imposed by any
     governmental entity or agency with respect to Hazardous Materials in, on,
     under or about the Premises and/or the Office Building Project to the
     extent such presence was not caused by a breach of this Paragraph 5.4 by
     Lessee or Lessee's Agents. Lessor's obligations under this Paragraph 5.4
     shall survive the ending, termination, and cancellation of this Lease, and
     no termination, cancellation or release Agreement entered into by Lessor
     and Lessee shall release Lessor from Lessor's obligations under this
     Paragraph 5.4 unless any such Agreement expressly sets forth Lessee's
     intention to so release Lessor.

          6.    MAINTENANCE, REPAIRS, ALTERATIONS AND COMMON AREA SERVICES.
                ----------------------------------------------------------

          6.1   Lessor's Obligations.  Lessor shall keep the Office Building
                --------------------
     Project, including the Premises, interior and exterior walls, roof, and
     Common Areas, and the equipment whether used exclusively for the Premises
     or in common with other premises, in good condition and repair; provided,
     however, Lessor shall not be obligated to paint, repair or replace wall
     coverings, or to repair or replace any improvements that are not ordinarily
     a part of the Building or are above Building standards as of the
     Commencement Date of this Lease.  Lessor shall not be obligated to repair
     damage caused by negligence of Lessee or of Lessee's agents, employees,
     contractors, guests or invitees, or by reason of the failure of Lessee to
     perform or comply with any terms, conditions or covenants in this Lease, or
     caused by alterations, additions or improvements made by Lessee or Lessee's
     agents, employees or contractors, which damage Lessee shall repair at its
     sole expense.  Lessee expressly waives the benefits of any statute now or
     hereafter in effect (including, without limitation, the provisions of
     Sections 1941 and 1942 of the California Civil Code) which would otherwise
     afford Lessee the right to make repairs at Lessor's expense or to terminate
     this Lease because of Lessor's failure to keep the Premises, the Building
     or the Common Areas in good order, condition and repair.

          6.2   Lessee's Obligations.
                --------------------

                                    - 11 -
<PAGE>

                (a)  Notwithstanding Lessor's obligation to keep the Premises in
     good condition and repair, Lessee shall be responsible for payment to
     Lessor, as additional rent, that portion of the cost of any maintenance and
     repair of the Premises, or any equipment (wherever located), that serves
     only Lessee or the Premises, to the extent such cost is attributable to any
     cause beyond normal wear and tear or damage from casualty described in
     Paragraph 8.  Lessee shall be responsible for the actual cost of painting,
     repairing or replacing wall coverings, and to repair or replace any
     Premises Improvements that are not ordinarily a part of the Building or
     that are above Building standards as of the Commencement Date of this
     Lease.  Lessor may, at its option, upon reasonable notice, elect to have
     Lessee perform any particular such maintenance or repairs the cost of which
     is otherwise Lessee's responsibility hereunder.

                (b)  On the last day of the term hereof, or on any sooner
     termination, Lessee shall surrender the Premises to Lessor in the same
     condition as received, ordinary wear and tear and damage from casualty
     described in Paragraph 8,  excepted, clean and free of debris.  Any damage
     or deterioration of the Premises shall not be deemed ordinary wear and tear
     if the same could have been prevented by good maintenance practices by
     Lessee.  Lessee shall repair any damage to the Premises occasioned by the
     installation or removal of Lessee's trade fixtures, alterations,
     furnishings and equipment.  Except for such conditions resulting from
     normal wear and tear and damage from casualty, Lessee shall leave the air
     lines, power panels, electrical distribution systems, lighting fixtures,
     air conditioning, window coverings, ceilings and plumbing on the Premises
     clean and in good operating condition and shall leave the ceiling panels,
     air conditioning vents, painted surfaces, wall coverings, paneling and
     carpets clean and in good repair.

          6.3   Alterations and Additions.
                -------------------------

                (a)  Except for the initial Tenant Improvements and non-
     structural alterations which do not affect Building systems, Lessee shall
     not make any alterations, improvement, additions, Utility Installation or
     repair in, on or about the Premises, over Three Thousand Dollars ($3,000)
     without Lessor's prior written consent which shall not be unreasonably
     withheld, conditioned or delayed. As used in the Paragraph 6.3 the term
     "Utility Installation" shall mean carpeting, window and wallcoverings,
     power panels, electrical distribution

                                    - 12 -
<PAGE>

     systems, lighting fixtures, air conditioning and plumbing. At the
     expiration of the term, Lessor may require the removal of any or all of
     said alterations, improvements, additions or Utility Installations, and the
     restoration of the Premises to their prior condition, at Lessee's expense.
     Should Lessor permit Lessee to make its own alterations, improvements,
     additions or Utility Installations, Lessee shall use only such contractor
     as has been expressly approved by Lessor, which approval shall not be
     unreasonably withheld, and Lessor may require Lessee to provide Lessor, at
     Lessee's sole cost and expense, a lien and completion bond in an amount
     equal to one and one-half (1 1/2) times the estimated cost of such
     improvements, to insure Lessor against any liability for mechanic's and
     materialmen's liens and to insure completion of the work. Should Lessee
     make any alterations, improvements, additions or Utility Installations
     without the prior approval of Lessor, or use a contractor not expressly
     approved by Lessor, Lessor may, at any time during the term of this Lease,
     require that Lessee remove any part or all of the same.

                (b)  Except as provided in subsection (a) above, any
     alterations, improvements, additions or Utility Installations in or about
     the Premises over Three Thousand Dollars ($3,000) that Lessee shall desire
     to make shall be presented to Lessor in written form, with proposed
     detailed plans. If Lessor shall give its consent to Lessee's making such
     alteration, improvement, addition or Utility Installation, the consent
     shall be deemed conditioned upon Lessee acquiring a permit to do so from
     the applicable governmental agencies, furnishing a copy thereof to Lessor
     prior to the commencement of the work, and compliance by Lessee with all
     conditions of said permit in a prompt and expeditious manner.

                (c)  Lessee shall pay, when due, all claims for labor or
     materials furnished or alleged to have been furnished to or for Lessee at
     or for use in the Premises, which claims are or may be secured by any
     mechanic's or materialmen's lien against the Premises, the Building or the
     Office Building Project, or any interest therein.

                (d)  Lessee shall give Lessor not less than fifteen (15) days'
     notice prior to the commencement of any work in the Premises by Lessee, and
     Lessor shall have the right to post notices of non-responsibility in or on
     the Premises or the Building as provided by law.  If Lessee shall, in good
     faith, contest the validity of any such lien, claim or demand, then Lessee
     shall, at its sole expense defend itself and Lessor against the same and
     shall pay and satisfy any such adverse judgment that may

                                    - 13 -
<PAGE>

     be rendered thereon before the enforcement thereof against the Lessor or
     the Premises, the Building or the Office Building Project, upon the
     condition that if Lessor shall require, Lessee shall furnish to Lessor a
     surety bond satisfactory to Lessor in an amount equal to such contested
     lien claim or demand indemnifying Lessor against liability for the same and
     holding the Premises, the Building and the Office Building Project free
     from the effect of such lien or claim. In addition, Lessor may require
     Lessee to pay Lessor's reasonable attorneys' fees and costs in
     participating in such action if Lessor shall decide it is to Lessor's best
     interest to do so.

                (e)  All alterations, improvements, additions and Utility
     Installations (whether or not such Utility Installations constitute trade
     fixtures of Lessee), which may be made to the Premises by Lessee, including
     but not limited to, floor coverings, paneling, doors, drapes, built-ins,
     moldings, sound attenuation, and lighting, conduit, wiring and outlets,
     shall be made and done in a good and workmanlike manner and of good and
     sufficient quality and materials and shall be the property of Lessor and
     remain upon and be surrendered with the Premises at the expiration of the
     Lease term, unless Lessor requires their removal pursuant to Paragraph
     6.3(a). Provided Lessee is not in default, notwithstanding the provisions
     of this Paragraph 6.3(e), Lessee's personal property, trade fixtures,
     equipment, phone systems, security systems and wiring, and furniture shall
     remain the property of Lessee and may be removed by Lessee subject to the
     provisions of Paragraph 6.2(b). Lessee shall repair any material damage to
     the Premises or the Building caused by the removal of any such personal
     property, systems or equipment of Lessee.

                (f)  Lessee shall provide Lessor with as-built plans and
     specifications for any alterations, improvements, additions or Utility
     Installations.

          6.4   Utility Additions.
                -----------------

     Lessor reserves the right to install new or additional utility facilities
     throughout the Office Building Project for the benefit of Lessor or Lessee,
     or any other lessee of the Office Building Project, including, but not by
     way of limitation, such utilities as plumbing, electrical systems, security
     systems, communication systems, and fire protection and detection systems,
     so long as such installations do not unreasonably interfere with Lessee's
     use of the Premises and do not affect Lessee's rights, use or obligations
     hereunder.  A proportional share of the amortized cost of such additions
     including interest shall be charged to the Lessee.

                                     - 14 -
<PAGE>

          7.    INSURANCE; INDEMNITY.
                --------------------

          7.1   Liability Insurance - Lessee.   Lessee shall, at Lessee's
                ----------------------------
     expense, obtain and keep in force during the term of this Lease a policy of
     Comprehensive General Liability insurance utilizing an Insurance Services
     Office standard form with Broad Form General Liability Endorsement
     (GL0404), or equivalent, in an amount of not less than Two Million Dollars
     ($2,000,000) per occurrence of bodily injury and property damage combined
     or in a greater amount as reasonably determined by Lessor as the amount
     then customarily carried by owners and operators of similar properties and
     shall insure Lessee, and Lessor as an additional insured, against liability
     arising out of the use, occupancy or maintenance of the Premises.
     Compliance with the above requirement shall not, however, limit the
     liability of Lessee hereunder.

          7.2   Property Insurance - Lessee. Lessee shall, at Lessee's
                ---------------------------
     expense, obtain and keep in force during the term of this Lease for the
     benefit of Lessee, replacement cost of fire and extended coverage
     insurance, with vandalism and malicious mischief endorsements, in an amount
     sufficient to cover not less than 100% of the full replacement cost, as the
     same may exist from time to time, of all of Lessee's personal property,
     fixtures, equipment and tenant improvements financed by Lessee.

          7.3   Insurance - Lessor.  Lessor shall obtain and keep in force
                ------------------
     during the term of this Lease a policy or policies of insurance covering
     loss or damage to the Office Building Project improvements, but not
     Lessee's personal property, fixtures, equipment or tenant improvements in
     the amount of the full replacement cost thereof, as the same may exist from
     time to time, utilizing Insurance Services Office standard form, or such
     other form as Lessor elects, providing protection against all perils
     included within the classification of special causes of loss, and such
     other perils as Lessor deems advisable, including without limitation
     earthquake and flood coverage.  In addition, Lessor shall, at Lessor's
     option, obtain and keep in force, during the term of this Lease, a policy
     of rental value insurance covering a period of one year, with loss payable
     to Lessor, which insurance shall also cover all Operating Expenses for said
     period.  Lessee will not be named in any such policies carried by Lessor
     and shall have no right to any proceeds therefrom.  The policies required
     by this Paragraph 7.3 shall contain such deductibles as Lessor or the
     aforesaid lender may determine.  In the event that the Premises shall
     suffer an insured loss as defined in Paragraph

                                    - 15 -
<PAGE>

     8.1(e) hereof, the deductible amounts under the applicable insurance
     policies shall be deemed an Operating Expense. Lessee shall not do or
     permit to be done anything which shall invalidate the insurance policies
     carried by Lessor. Lessee shall pay the entirety of any increase in the
     property insurance premium for the Office Building Project over what it was
     immediately prior to the commencement of the term of this Lease if the
     increase is specified by Lessor's insurance carrier as being caused by the
     nature of Lessee's occupancy or any act or omission of Lessee.

          7.4   Insurance Policies.  Lessee shall deliver to Lessor copies of
                ------------------
     all insurance policies required to be maintained by Lessee under this
     section 8 or certificates evidencing the existence and amounts of such
     insurance within thirty (30) business days after the Commencement Date of
     this Lease.  All such policies shall name Lessor as an additional insured
     and no such policy shall be cancelable or subject to reduction of coverage
     or other modification except after thirty (30) days prior written notice to
     Lessor.  Lessee shall, at least thirty (30) days prior to the expiration of
     such policies, furnish Lessor with renewals thereof.

          7.5   Waiver of Subrogation.  Notwithstanding anything to the contrary
                ---------------------
     in the Lease.  Lessee and Lessor each hereby release and relieve the other,
     and waive their entire right of recovery against the other, for direct or
     consequential loss or damage arising out of or incident to the perils
     covered by property insurance carried by such party, without regard to the
     negligence of Lessor or Lessee or their agents, employees, contractors
     and/or invitees.  All of Lessor's and Lessee's repair and indemnity
     obligations under the Lease shall be subject to the waiver contained in
     this paragraph.  Each party shall cause each insurance policy it obtains to
     provide that the insurer thereunder waives all right of recovery by way of
     subrogation as required herein in connection with any injury or damage
     covered by the policy.

          7.6.  Indemnity.  Except to the extent and proportion caused by
                ---------
     Lessor's or its agent's or contractor's negligence or willful misconduct,
     Lessee shall indemnify and hold harmless Lessor and its agents, partners
     and lenders, from and against any and all liability, cost, expense, loss or
     claim for damage to the person or property of anyone or any entity arising
     from Lessee's use of the Office Building Project, or from the conduct of
     Lessee's business or from any activity, work or things done or permitted by
     Lessee in or about the Premises and shall further indemnify and hold
     harmless Lessor from and against any and all liability, cost, expense, loss
     or

                                    - 16 -
<PAGE>

     claim arising from any breach or default in the performance of any
     obligation on Lessee's part to be performed under the terms of this Lease,
     or arising from any negligent act or omission of Lessee, or any of Lessee's
     agents, contractors, employees or invitees and from and against all costs,
     attorneys' fees, expenses and liabilities incurred by Lessor as the result
     of any such use, conduct, activity, work, things done or permitted, breach,
     default or negligence, and in dealing reasonably therewith, including but
     not limited to the defense or pursuit of any claim or any action or
     proceeding be brought against Lessor by reason of any such matter, Lessee
     upon notice from Lessor shall defend the same at Lessee's expense by
     counsel reasonably satisfactory to Lessor and Lessor shall cooperate with
     Lessee in such defense. Lessor need not have first paid any such liability
     cost, expense, loss or claim in order to be so indemnified. Lessee, as a
     material part of the consideration to Lessor, hereby assumes all risk of
     injury or damage to property of Lessee and its agents in, upon or about the
     Premises arising from any cause except for the negligence or willful
     misconduct of Lessor and Lessee hereby waives all claims in respect thereof
     against Lessor. Notwithstanding any provision to the contrary in this
     Lease, Lessor shall indemnify and hold harmless Lessee from all damages,
     liabilities, claims, judgments, actions, attorneys' fees, consultants'
     fees, costs and expenses arising from the negligence or willful misconduct
     of Lessor or Lessor's Agents or Contractors, or the breach of Lessor's
     obligations or representations under this Lease.

          7.7   Exemption of Lessor from Liability.  Lessee hereby agrees that,
                ----------------------------------
     except for the negligence or willful misconduct of Lessor, Lessor's Agents
     or Contractors, Lessor shall not be liable for injury to Lessee's business
     or any loss of income therefrom or from loss of or damage to the goods,
     wares, merchandise or other property of Lessee, Lessee's employees,
     invitees, customers, or any other person in or about the Premises or the
     Office Building Project, nor shall Lessor be liable for injury to the
     person of Lessee, Lessee's employees, agents or contractors, whether such
     damage or injury is caused by or results from thefts, fire, steam,
     electricity, gas, water or rain, or from the breakage, leakage, obstruction
     or other defects of pipes, sprinklers, wires, appliances, plumbing, air
     conditioning or lighting fixtures, or from any other cause, whether said
     damage or injury results from conditions arising upon the Premises or upon
     other portions of the Office

                                    - 17 -
<PAGE>

     Building Project, or from other sources or places, or from new construction
     or the repair, alteration or improvement of any part of the Office Building
     Project, or of the equipment, fixtures or appurtenances applicable thereto,
     and regardless of whether the cause of such damage or injury or the means
     of repairing the same is inaccessible. In addition, Lessor shall not be
     liable for any damages arising from any act or neglect of any other lessee,
     occupant or user of the Office Building Project, nor from the failure of
     Lessor to enforce the provisions of any other lease.

          7.8   No Representation of Adequate Coverage.  Lessor makes no
                --------------------------------------
     representation that the limits or forms of insurance specified in this
     Section 7 are adequate to cover Lessee's property or obligations under this
     Lease.

          8.    DAMAGE OR DESTRUCTION.
                ---------------------

          8.1   Definitions.
                -----------

                (a)  "Premises Damage" shall mean if the Premises are damaged or
     destroyed to any extent.

                (b)  "Premises Partial Damage" shall mean if the Premises are
     damaged or destroyed to the extent that the cost of repair is less than
     thirty-three and one-third percent (33-1/3%) of the then Replacement Cost
     of the Building.

                (c)  "Premises Total Destruction" shall mean if the Premises are
     damaged or destroyed to the extent that the cost to repair is thirty-three
     and one-third percent (33-1/3%) or more of the then Replacement Cost of the
     Building.

                (d)  "Building Total Destruction" shall mean if the Building is
     damaged or destroyed to the extent that the cost of repair is thirty-three
     and one-third percent (33-1/3%) or more of the then Replacement Cost of the
     Building.

                (e)  "Insured Loss" shall mean damage or destruction which was
     caused by an event required to be covered by the insurance described in
     section 8.  The fact that an insured Loss has a deductible amount shall not
     make the loss an uninsured loss.

                (f)  "Replacement Cost" shall mean the amount of money necessary
     to be spent in order to repair or rebuild the damaged area to the condition
     that existed immediately prior to the damage occurring, excluding all
     improvements made by lessees, other than those installed by Lessor at
     Lessee's expense.

                                    - 18 -
<PAGE>

          8.2   Premises Damage; Premises Partial Damage.
                ----------------------------------------

                (a)  Insured Loss:  Subject to the provisions of Paragraphs 8.4
                     ------------
     and 8.5, if at any time during the term of this Lease there is damage which
     is an Insured Loss and which falls into the classification of either
     Premises Damage or Premises Partial Damage, then Lessor shall, as soon as
     reasonably possible and to the extent the required materials and labor are
     readily available through usual commercial channels, at Lessor's expense,
     repair such damage (but not Lessee's fixtures, equipment or tenant
     improvements originally paid for by Lessee) to its condition existing at
     the time of the damage, and this Lease shall continue in full force and
     effect.  In the event any such damage is caused by the negligent or willful
     act of Lessee, Lessee shall make the repairs at Lessee's expense.

                (b)  Uninsured Loss:  Subject to the provisions of Paragraphs
                     --------------
     8.4 and 8.5, if at any time during the term of this Lease there is damage
     which is not an Insured Loss and which falls within the classification of
     Premises Damage or Premises Building Partial Damage, unless caused by a
     negligent or willful act of Lessee (in which event Lessee shall make the
     repairs at Lessee's expense), Lessor may at Lessor's option either (i)
     repair such damage as soon as reasonably possible at Lessor's expense, in
     which event this Lease shall continue in full force and effect, or (ii)
     give written notice to Lessee within thirty (30) days after the date of the
     occurrence of such damage of Lessor's intention to cancel and terminate
     this Lease as of the date of the occurrence of such damage, in which event
     this Lease shall terminate as of the date of the occurrence of such damage.
     However, Lessor shall not have the right to terminate the Lease if damage
     to or destruction of the Premises or Building is relatively minor (e.g.,
     repair or restoration would cost less than five percent (5%) of the
     replacement cost of the Building).

          8.3   Premises Total Destruction; Office Building Project Total
                ---------------------------------------------------------
     Destruction.  Subject to the provisions of Paragraphs 8.4 and 8.5, if at
     -----------
     any time during the term of this Lease there is damage, whether or not it
     is an Insured Loss, which falls into the classifications of either (i)
     Premises Total Destruction, or (ii) Office Building Project Total
     Destruction, then Lessor may at Lessor's option either (i)repair such
     damage or destruction within one hundred twenty (120) days at Lessor's
     expense to its condition existing at the time of the damage, but not
     Lessee's fixtures, equipment or tenant

                                    - 19 -
<PAGE>

     improvements, and this Lease shall continue in full force and effect, or
     (ii) give written notice to Lessee within thirty (30) days after the date
     of occurrence of such damage of Lessor's intention to cancel and terminate
     this Lease, in which case this Lease shall terminate as of the date of the
     occurrence of such damage.

          8.4   Damage Near End of Term.  If at any time during the last twelve
                -----------------------
     (12) months of the term of this Lease including extensions there is
     substantial damage to the Premises, Lessor may at Lessor's option cancel
     and terminate this Lease as of the date of occurrence of such damage by
     giving written notice to Lessee of Lessor's election to do so within thirty
     (30) days after the date of occurrence of such damage.

          8.5   Abatement of Rent; Lessee's Remedies.
                ------------------------------------

                (a)  In the event Lessor repairs or restores the Building or
     Premises pursuant to the provisions of this Section 8, and any part of the
     Premises are not usable in the same manner as before the damage (including
     loss of use due to loss of access or essential services), the rent payable
     hereunder (including Lessee's Share of Operating Expenses) for the period
     during which such damage, repair or restoration continues shall be abated,
     provided (1) the damage was not the result of the negligence of Lessee, and
     (2) such abatement shall be in proportion to that part of the Premises
     which is unusable by Lessee for the conduct of its business in the same
     manner as before the damage.  Except for said abatement of rent, if any,
     Lessee shall have no claim against Lessor for any damage suffered by reason
     of any such damage, destruction, repair or restoration.

                (b)  If Lessor shall be obligated to repair or restore the
     Premises or the Building under the provisions of this Section 8 and shall
     not commence such repair or restoration within ninety (90) days after such
     occurrence or if it shall require more than one hundred twenty (120) days
     from the date of such casualty to complete restoration or repair, Lessee
     may at Lessee's option cancel and terminate this Lease by giving Lessor
     written notice of Lessee's election to do so at any time prior to the
     commencement or completion, respectively, of such repair or restoration.
     In such event this Lease shall terminate as of the date of such notice.

                (c)  Lessee agrees to cooperate with Lessor in connection with
     any such restoration and repair, including but not limited to the approval
     and/or execution of plans and specifications as and when required.

                                    - 20 -
<PAGE>

          8.6   Termination - Advance Payments.  Upon termination of this Lease
                ------------------------------
     pursuant to this Section 8, an equitable adjustment shall be made
     concerning advance rent, if any, and any advance payments made by Lessee to
     Lessor.  Lessor shall, in addition return to Lessee so much of Lessee's
     security deposit as has not theretofore been applied by Lessor or which
     Lessor has a right to apply pursuant to the terms of this Lease.

          8.7   Waiver.  Lessor and Lessee waive the provisions of any statutes
                ------
     which relate to termination of leases when leased property is destroyed and
     agree that such event shall be governed by the terms of this Lease.

          9.    REAL PROPERTY TAXES.
                -------------------

          9.1   Payment of Taxes.  Lessor shall pay the real property tax, as
                ----------------
     defined in Paragraph 9.3, applicable to the Office Building Project subject
     to the payment by Lessee of Lessee's Share of Operating Expenses in
     accordance with the provisions of Paragraph 4.2, except as otherwise
     provided in Paragraph 9.2.

          9.2   Additional Improvements.  Lessee shall not be responsible for
                -----------------------
     paying any increase in real property tax specified in the tax assessor's
     records and work sheets as being caused by additional improvements placed
     upon the Office Building Project by other lessees or by Lessor for the
     exclusive enjoyment of any other lessee.  Notwithstanding the provisions
     set forth in Paragraph 4.2 hereof, Lessee shall, however, pay to Lessor at
     the time that Operating Expenses are payable under Paragraph 4.2(d) the
     entirety of any increase in real property taxes if assessed solely by
     reason of additional improvements placed upon the Premises by Lessee at
     Lessee's request.

          9.3   Definition of "Real Property Tax".   As used herein, the term
                ---------------------------------
     "real property tax" shall include any form of real estate tax or
     assessment, general, special, ordinary or extraordinary, and any license
     fee, commercial rental tax, improvement bond or bonds, levy or tax (other
     than inheritance, personal income or estate taxes) imposed on the Office
     Building Project or any portion thereof by any authority having the direct
     or indirect power to tax, including any city, county, state or federal
     government, or any school, agricultural, sanitary, fire, street, drainage
     or other improvement district thereof, as against any legal or equitable
     interest of Lessor in the Office Building Project or in any portion
     thereof, as against

                                    - 21 -
<PAGE>

     Lessor's right to rent or other income therefrom, and as against Lessor's
     business of leasing the Office Building Project.

     Notwithstanding the foregoing, "Real Property Tax" shall not include and
     Lessee shall not be required to pay any portion of any tax or assessment
     expense or any increase therein (a) levied on Lessor's rental income,
     unless such tax or assessment expense is imposed in lieu of real property
     taxes; (b) in excess of amount which would be payable if such tax or
     assessment expense were paid in installments over the longest possible
     term; or (c) attributable to Lessor's net income, inheritance, gift,
     transfer, estate or state taxes; or (d) resulting from a change of
     ownership or transfer of any or all of the Project or the improvement of
     any of the Project for sole use of other occupants.

          9.4   Joint Assessment.  If the improvements or property, the taxes
                ----------------
     for which are to be paid separately by Lessee under Paragraph 9.2 or 9.5,
     are not separately assessed, Lessee's portion of that tax shall be
     equitably determined by Lessor from the respective valuations assigned in
     the assessor's work sheets or such other information (which may include the
     cost of construction) as may be reasonably available.  Lessor's reasonable
     determination thereof, in good faith, shall be conclusive.

          9.5   Personal Property Taxes.
                -----------------------

                (a)  Lessee shall pay prior to delinquency all taxes assessed
     against and levied upon trade fixtures, furnishings, equipment and all
     other personal property of Lessee contained in the Premises or elsewhere.

                (b)  If any of Lessee's said personal property shall be assessed
     with Lessor's real property, Lessee shall pay to Lessor the taxes
     attributable to Lessee within ten (10) days after receipt of a written
     statement setting forth the taxes applicable to Lessee's property.

          10.   UTILITIES AND SERVICES.
                ----------------------

          10.1  Services Provided by Lessor.  Lessor shall provide typical
                ---------------------------
     office heating, ventilating and air conditioning (HVAC) throughout the
     building from four (4) large house units (AC 1/DF 1, AC 2/DF 2, AC 3/DF 3,
     AC 4/ DF 4) during the specified hours of service in Paragraph 10.3.  Any
     other Fan Coils (FC), Condensing Units (CU), air conditioning units, and/or
     fans required for computer rooms, clean air rooms, laboratories, etc. that
     require special temperature control, odor control, etc., will

                                    - 22 -
<PAGE>

     result in additional charge to Lessee to cover the costs of the special
     system or systems including electricity, gas, water, maintenance and repair
     costs, and amortization plus interest charged according to generally
     accepted accounting practices. Lessor shall also provide electricity and
     water twenty-four (24) hours per day, seven days per week.

          10.2  Services Exclusive to Lessee.  Lessee shall pay for all water,
                ----------------------------
     heating, ventilation, air conditioning, light, power, telephone, data and
     other utilities and services specially or exclusively supplied and/or
     metered exclusively to the Premises or to Lessee, together with any taxes
     thereon.  If any such services are not separately metered to the Premises,
     Lessee shall pay at Lessor's option, either Lessee's Share or a reasonable
     proportion to be determined by Lessor of all charges jointly metered with
     other premises in the Building.

          10.3  Hours of Service.  The services and utilities described in
                ----------------
     Paragraph 10.1 shall be provided during generally accepted business days,
     Monday through Friday, hours 7:00 a.m. through 6:00 p.m.  Utilities and
     services required at all other times shall be subject to reimbursement by
     Lessee to Lessor of the actual cost thereof including allowances for
     additional wear, and reduction in expected life of the equipment.

          10.4  Excess Usage by Lessee.  Lessee shall not make connection to the
                ----------------------
     utilities except by or through existing outlets and shall not install or
     use machinery or equipment in or about the Premises that uses excess water,
     lighting, or power, or suffer or permit any act that causes extra burden
     upon the utilities or services, including but not limited to security
     services, over standard office usage for the Office Building Property.
     Lessor shall require Lessee to reimburse Lessor for any excess expenses or
     costs that may arise out of a breach of this subparagraph by Lessee.
     Lessor may in its reasonable discretion, install at Lessee's expense
     supplemental equipment and/or separate metering applicable to Lessee's
     excess usage or loading.

          10.5  Interruptions.  There shall be no abatement of rent and Lessor
                -------------
     shall not be liable in any respect whatsoever for the inadequacy, stoppage,
     interruption or discontinuance of any utility or service due to riot,
     strike, labor dispute, breakdown, accident, repair or other cause beyond
     Lessor's reasonable control or in cooperation with governmental request or
     directions.

                                    - 23 -
<PAGE>

          11.   OPTION TO EXTEND.  Lessor hereby grants to Lessee two (2)
                ----------------
options (the "Option") to extend the term of this lease for two additional terms
of one (1) year, commencing when the initial term expires, upon the terms and
conditions set forth in this Paragraph. Provided "Resonate" or Lessee Affiliate
is then occupying at least fifty percent (50%) of the Premises, Lessee may
exercise such option by giving Lessor written notice of its intention not less
than one hundred eighty (180) days prior to the expiration of the initial term
of this Lease. With respect to the second one year term, Lessee may exercise
such option by giving Lessor written notice of its intention not less than one
hundred eighty (180) days prior to the expiration of the first additional one
year term. All of the term and conditions contained in the Lease, as the same
may be amended from time to time by the parties in accordance with the
provisions of the Lease, shall remain in full force and effect and shall apply
during the Option term except the rent shall be the greater of 100% Fair Market
Rate or the previous 12 months rent.

          12.   ASSIGNMENT AND SUBLETTING.
                -------------------------

          12.1  Lessor's Consent Required.  Lessee shall not voluntarily or by
                -------------------------
     operation of law sublet, or otherwise transfer or encumber any part of
     Lessee's interest in the Lease or in the Premises, without Lessor's prior
     written consent, which Lessor shall not unreasonably withhold, and
     Sublessee must have a net worth of at least ten million dollars
     ($10,000,000).  If Lessor does not notify Lessee in writing of its consent
     or reasonable nonconsent of such sublet, transfer or encumberance proposed
     by Lessee within twenty (20) days following Lessee's request for approval,
     then Lessor shall be deemed to have consented to such sublet, transfer or
     encumberance.  Any attempted assignment, transfer, mortgage, encumbrance or
     subletting without such consent shall be void and shall constitute a
     material default and breach of this Lease without the need for notice to
     Lessee under Paragraph 13.1.  If Lessee desires to transfer over fifty
     percent (50%) of the space, the Lessor reserves the right to terminate the
     Lease.

     "Transfer" within the meaning of this Section 12 shall include the transfer
     or transfers aggregating, if Lessee is a partnership, more than fifty
     percent (50%) of the profit and loss participation in such partnership.

          12.2  Lessee Affiliate.  Notwithstanding the provisions of Paragraph
                ----------------
     12.1 hereof, Lessee may assign or sublet the Premises, or any portion
     thereof, without Lessor's consent, to any corporation which controls, is
     controlled by or is under common control with Lessee, or

                                    - 24 -
<PAGE>

     to any corporation resulting from the merger or consolidation with Lessee,
     or to any person or entity which acquires all the assets of Lessee as a
     going concern of the business that is being conducted on the Premises, all
     of which are referred to as "Lessee Affiliate"; provided that before such
     assignment shall be effective, (a) said assignee shall assume, in full, the
     obligations of Lessee under this Lease and (b) Lessor shall be given
     written notice of such assignment and assumption. Any such assignment shall
     not, in any way, affect or limit the liability of Lessee under the terms of
     this Lease even if after such assignment or subletting the terms of this
     Lease are materially changed or altered without the consent of Lessee, the
     consent of whom shall not be necessary.

          12.3  Terms and Conditions Applicable to Assignment and Subletting.
                ------------------------------------------------------------

                (a)  Regardless of Lessor's consent, no assignment or subletting
     shall release Lessee of Lessee's obligations hereunder or alter the primary
     liability of Lessee to pay the rent and other sums due Lessor hereunder
     including Lessee's Share of Operating Expenses, and to perform all other
     obligations to be performed by Lessee hereunder.

                (b)  Lessor may accept rent from any person other than Lessee
     pending approval or disapproval of such assignment.

                (c)  Neither a reasonable delay in the approval or disapproval
     of such assignment or subletting, nor the acceptance of rent, shall
     constitute a waiver or estoppel of Lessor's right to exercise its remedies
     for the breach of any of the terms or conditions of this Section 14 or this
     Lease.

                (d)  If Lessee's obligations under this Lease have been
     guaranteed by third parties, then an assignment or sublease, and Lessor's
     consent thereto, shall not be effective unless said guarantors give their
     written consent to such assignment or sublease and the terms thereof.

                (e)  The consent of Lessor to any assignment or subletting shall
     not constitute a consent to any subsequent assignment or subletting by
     Lessee or to any subsequent or successive assignment or subletting by the
     sublessee.  However, Lessor may consent to subsequent sublettings and
     assignments of the sublease or any amendments or modifications thereto
     without notifying

                                    - 25 -
<PAGE>

     Lessee or anyone else liable on the Lease or sublease and without obtaining
     their consent and such action shall not relieve such persons from liability
     under this Lease or said sublease; provided, however, such persons shall
     not be responsible to the extent any such amendment or modification
     enlarges or increases the obligations of the Lessee or sublessee under this
     Lease or such sublease.

                (f)  In the event of any default under this Lease, Lessor may
     proceed directly against Lessee, any guarantors or anyone else responsible
     for the performance of this Lease, including the sublessee, without first
     exhausting Lessor's remedies against any other person or entity responsible
     therefor to Lessor, or any security held by Lessor or Lessee.

                (g)  Lessor's written consent to any assignment or subletting of
     the Premises by Lessee shall not constitute an acknowledgment that no
     default then exists under this Lease of the obligations to be performed by
     Lessee nor shall such consent be deemed a waiver of any then existing
     default, except as may be otherwise stated by Lessor at the time.

                (h)  The discovery of the fact that any financial statement
     relied upon by Lessor in giving its consent to an assignment or subletting
     was materially false shall, at Lessor's election, render Lessor's said
     consent null and void.

                (i)  If Lessee receives rent or other consideration, either
     initially or over the term of any assignment or sublease in excess of the
     rent required under this Lease, Lessee shall pay to Lessor, as additional
     rent hereunder, 50% of the excess of each such payment of rent or
     additional consideration by Lessee after subtracting Lessee's reasonable
     brokers and attorney's fees and the unamortized portion of improvements to
     the Premises paid for by Lessee, provided that in no event will Lessor be
     responsible for any portion of the broker and attorney fees associated with
     such sublease or assignment.

          12.4  Additional Terms and Conditions Applicable to Subletting.
                --------------------------------------------------------
     Regardless of Lessor's consent, the following terms and conditions shall
     apply to any subletting by Lessee of all or any part of the Premises and
     shall be deemed included in all subleases under this Lease whether or not
     expressly incorporated therein:

                (a)  Lessee hereby assigns and transfers to Lessor all of
     Lessee's interest in all rentals and income

                                    - 26 -
<PAGE>

     arising from any sublease heretofore or hereafter made by Lessee, and
     Lessor may collect such rent and income and apply same toward Lessee's
     obligations under this Lease, provided, however, that until a default shall
     occur in the performance of Lessee's obligations under this Lease, Lessee
     may receive, collect and enjoy the rents accruing under such sublease.
     Lessor shall not, by reasons of this or any other assignment of such
     sublease to Lessor nor by reason of the collection of the rents from a
     sublessee be deemed liable to the sublessee for any failure of Lessee to
     perform and comply with any of Lessee's obligations to such sublessee under
     such sublease. Lessee hereby irrevocably authorizes and directs any such
     sublessee, upon receipt of a written notice from Lessor stating that a
     default in the performance of Lessee's obligations under this Lease, to pay
     to Lessor the rents due and to become due under the sublease. Lessee agrees
     that such sublessee shall have the right to rely upon any such statement
     and request from Lessor, and that such sublessee shall pay such rents to
     Lessor without any obligation or right to inquire as to whether such
     default exists and notwithstanding any notice from or claim from Lessee to
     the contrary. Lessee shall have no right or claim against said sublessee or
     Lessor for any such rents so paid by said sublessee to Lessor.

                (b)  No sublease entered into by Lessee shall be effective
     unless and until it has been approved in writing by Lessor. In entering
     into any sublease, Lessee shall use only such form of sublease as is
     satisfactory to Lessor, and once approved by Lessor, such sublease shall
     not be changed or modified without Lessor's prior written consent which
     consent shall not be unreasonably withheld or delayed. Any sublessee shall,
     by reason of entering into a sublease under this Lease, be deemed for the
     benefit of Lessor, to have assumed and agreed to conform and comply with
     each and every obligation herein to be performed by Lessee other than such
     obligations as are contrary to or inconsistent with provisions contained in
     a sublease to which Lessor has expressly consented in writing.

                (c)  In the event Lessee shall default in the performance of its
     obligations under this Lease, Lessor, at its option and without any
     obligation to do so, may require any sublessee to attorney to Lessor, in
     which event Lessor shall undertake the obligations of Lessee under such
     sublease from the time of the exercise of said option to the termination of
     such sublease; provided, however, Lessor shall not be liable for any
     prepaid rents or security deposit paid by such sublessee to Lessee or

                                    - 27 -
<PAGE>

     for any other prior defaults of Lessee under such sublease.

                (d)  No sublessee shall further assign or sublet all or any part
     of the Premises without Lessor's prior written consent in accordance with
     the Lease.

                (e)  With respect to any subletting to which Lessor has
     consented, Lessor agrees to deliver a copy of any notice of default by
     Lessee to the sublessee.  Such sublessee shall have the right to cure a
     default of Lessee within three (3) days after service of said notice of
     default upon such sublessee, and the sublessee shall have the right of
     reimbursement and offset from and against Lessee for any such defaults
     cured by the sublessee.

          12.5  Lessor's Expenses.  In the event Lessee shall assign or sublet
                -----------------
     the Premises or request the consent of Lessor to any assignment or
     subletting or if Lessee shall request the consent of Lessor for any act
     Lessee proposes to do then Lessee shall pay Lessor's reasonable costs and
     expenses incurred in connection therewith, including attorneys',
     architects', engineers' or other consultants' fees.

          12.6  Conditions to Consent.  Lessor reserves the right to condition
                ---------------------
     any approval to assign or sublet upon Lessor's determination that (a) the
     proposed assignee or sublessee shall conduct a business on the Premises of
     a quality substantially equal to that of Lessee and consistent with the
     general character of the other occupants of the Office Building Project and
     not in violation of any exclusives or rights then held by other tenants,
     and (b) the proposed assignee or sublessee be at least as financially
     responsible as the other tenants in the Building.

          13.   DEFAULT; REMEDIES.
                -----------------

          13.1  Default.  The occurrence of any one or more of the following
                -------
     events shall constitute a material default of this Lease by Lessee:

                (a)  The abandonment of the Premises by Lessee.  Abandonment of
     the Premises shall include the failure to occupy the Premises for a
     continuous period of sixty (60) days or more, whether or not the rent is
     paid.

                (b)  The failure by Lessee to make any payment of rent or any
     other payment required to be made by Lessee hereunder, as and when due,
     where such failure shall

                                    - 28 -
<PAGE>

     continue for a period of three (3) business days after written notice
     thereof from Lessor to Lessee. In the event that Lessor serves Lessee with
     a Notice to Pay Rent or Quit pursuant to applicable Unlawful Detainer
     statutes such Notice to Pay Rent or Quit shall also constitute the notice
     required by this subparagraph.

                (c)  (i) The making by Lessee of any general arrangement or
     general assignment for the benefit of creditors; (ii) Lessee becoming a
     "debtor" as defined in 11 U.S.C. (S) 101 or any successor statute thereto
     (unless, in the case of a petition filed against Lessee, the same is
     dismissed within sixty (60) days); (iii) the appointment of a trustee or
     receiver to take possession of substantially all of Lessee's assets located
     at the Premises or of Lessee's interest in this Lease, where such seizure
     is not discharged within thirty (30) days.  In the event that any provision
     of this Paragraph 13.1(c) is contrary to any applicable law, such provision
     shall be of no force or effect.

                (d)  The discovery by Lessor that any financial statement given
     to Lessor by Lessee, or its successor in interest or by any guarantor of
     Lessee's obligation hereunder, was materially false.

                (e)  The failure by Lessee to observe or perform any of the
     covenants, conditions or provisions of this Lease to be observed or
     performed by Lessee, other than those specifically referenced in other
     subparagraphs of this Paragraph 13.1, where such failure shall continue for
     a period of thirty (30) days after written notice thereof from Lessor to
     Lessee; provided, however, that if the nature of Lessee's noncompliance is
     such that more than thirty (30) days are reasonably required for its cure,
     then Lessee shall not be deemed to be in default if Lessee commenced such
     cure within said thirty (30) day period and thereafter diligently pursues
     such cure to completion.  To the extent permitted by law, such thirty (30)
     day notice shall constitute the sole and exclusive notice required to be
     given to Lessee under applicable Unlawful Detainer statutes.  In the event
     a specific time period for performance is set forth in any covenant,
     condition or provision of this Lease, such specific time period shall
     govern such performance rather than the thirty (30) day period set forth in
     this section and such specific time period shall not be subject to
     extension as provided in this section.

          13.2  Remedies.  In the event of any material default or breach of
                --------
     this Lease by Lessee, Lessor may at any time thereafter, with or without
     notice or demand and without

                                    - 29 -
<PAGE>

     limiting Lessor in the exercise of any right or remedy which Lessor may
     have by reason of such default:

                (a)  Terminate Lessee's right to possession of the Premises by
     any lawful means, in which case this Lease and the term hereof shall
     terminate and Lessee shall immediately surrender possession of the Premises
     to Lessor.  In such event Lessor shall be entitled to recover from Lessee
     all damages incurred by Lessor by reason of Lessee's default including, but
     not limited to, the cost of recovering possession of the Premises; expenses
     of reletting, including reasonably necessary renovation and alteration of
     the Premises, reasonable attorneys' fees, and any real estate commission
     actually paid; the worth at the time of award by the court having
     jurisdiction thereof of the amount by which the unpaid rent for the balance
     of the term after the time of such award exceeds the amount of such rental
     loss for the same period that Lessee proves could be reasonably avoided;
     that portion of the leasing commission paid by Lessor pursuant to Paragraph
     15 applicable to the unexpired term of this Lease.  Lessor shall use its
     best efforts to mitigate any damages caused by any such default.

                (b)  Maintain Lessee's right to possession, in which case this
     Lease shall continue in effect whether or not Lessee shall have vacated or
     abandoned the Premises.  In such event Lessor shall be entitled to enforce
     all of Lessor's rights and remedies under this Lease, including the right
     to recover the rent as it becomes due hereunder.

                (c)  Pursue any other remedy now or hereafter available to
     Lessor under the laws or judicial decisions of the state wherein the
     Premises are located. Unpaid installments of rent and other unpaid monetary
     obligations of Lessee under the terms of this Lease shall bear interest
     from the date due at the maximum rate then allowable by law.

                (d)  Lessor and Lessee agree that if an attorney is consulted by
     Lessor in connection with a Lessee Default, $500 is a reasonable minimum
     sum per such occurrence for legal services and costs in the preparation and
     service of a notice of Default and that Lessor may include the greater of
     $500 or the actual cost of such services and costs in said notice as rent
     due and payable to cure said Default.

          13.3  Default by Lessor.  Lessor shall not be in default unless Lessor
                -----------------
     fails to perform obligations required of Lessor within a reasonable time,
     but in no event later than thirty (30) days after written notice by

                                    - 30 -
<PAGE>

     Lessee to Lessor specifying wherein Lessor has failed to perform such
     obligation; provided, however, that if the nature of Lessor's obligation is
     such that more than thirty (30) days are required for performance then
     Lessor shall not be in default if Lessor commences performance within such
     thirty (30)-day period and thereafter diligently pursues the same to
     completion.

          13.4  Late Charges.  Lessee hereby acknowledges that late payment by
                ------------
     Lessee to Lessor of Base Rent, Lessee's Share of Operating Expenses or
     other sums due hereunder will cause Lessor to incur costs not contemplated
     by this Lease, the exact amount of which will be extremely difficult to
     ascertain.  Such costs include, but are not limited to, processing and
     accounting charges, and late charges which may be imposed on Lessor by the
     terms of any mortgage or trust deed covering the Office Building Project.
     Accordingly, if any installment of Base Rent, Operating Expenses, or any
     other sum due from Lessee shall not be received by Lessor or Lessor's
     designee within ten (10) days after such amount shall be due, then, without
     any requirement for notice to Lessee, Lessee shall pay to Lessor a late
     charge equal to five percent (5%) of such overdue amount.  The parties
     hereby agree that such late charge represents a fair and reasonable
     estimate of the costs Lessor will incur by reason of late payment by
     Lessee.  Acceptance of such late charge by Lessor shall in no event
     constitute a waiver of Lessee's default with respect to such overdue
     amount, nor prevent Lessor from exercising any of the other rights and
     remedies granted hereunder.

          14.   CONDEMNATION.  If the Premises or any portion thereof or the
                ------------
Office Building Project are taken under the power of eminent domain, or sold
under the threat of the exercise of said power (all of which are herein called
"condemnation"), this Lease shall terminate as to the part so taken as of the
date the condemning authority takes title or possession, whichever first occurs;
provided that if so much of the Premises or the Office Building Project are
taken by such condemnation as would substantially and adversely affect the
operation and profitability of Lessee's business conducted from the Premises,
Lessee shall have the option, to be exercised only in writing within thirty (30)
days after Lessor shall have given Lessee written notice of such taking (or in
the absence of such notice, within thirty (30) days after the condemning
authority shall have taken possession), to terminate this Lease as of the date
the condemning authority takes such possession.  If Lessee does not terminate
this Lease in accordance with the foregoing, this Lease shall remain in full
force and effect as to the portion of the Premises remaining, except that the
rent and Lessee's Share of Operating Expenses shall be reduced in

                                    - 31 -
<PAGE>

the proportion that the floor area of the Premises taken bears to the total
floor area of the Premises. Common Areas taken shall be excluded from the Common
Areas usable by Lessee and no reduction of rent shall occur with respect thereto
or by reason thereof. Lessor shall have the option in its sole discretion to
terminate this Lease as of the taking of possession by the condemning authority,
by giving written notice to Lessee of such election within thirty (30) days
after receipt of notice of a taking by condemnation of any part of the Premises
or the Office Building Project. Any award for the taking of all or any part of
the Premises or the Office Building Project under the power of eminent domain or
any payment made under threat of the exercise of such power shall be the
property of Lessor, whether such award shall be made as compensation for
diminution in value of the leasehold or for the taking of the fee, or as
severance damages; provided, however, that Lessee shall be entitled to any
separate award for loss of or damage to Lessee's trade fixtures, removable
personal property and unamortized tenant improvements that have been paid for by
Lessee. For that purpose, the cost of such improvements shall be amortized over
the original term of this Lease excluding any options. In the event that this
Lease is not terminated by reason of such condemnation, Lessor shall to the
extent of severance damages received by Lessor in connection with such
condemnation, repair any damage to the Premises caused by such condemnation
except to the extent that Lessee has been reimbursed therefor by the condemning
authority. Lessee shall pay any amount in excess of such severance damages
required to complete such repair.

          15.   BROKER'S FEE.  None. No fees are applicable to this transaction.
                ------------

          16.   ESTOPPEL CERTIFICATE.
                --------------------

                (a)  Each party (as "responding party") shall at any time upon
     not less than ten (10) business days' prior written notice from the other
     party ("requesting party") execute, acknowledge and deliver to the
     requesting party a statement in writing (i) certifying that this Lease is
     unmodified and in full force and effect (or, if modified, stating the
     nature of such modification and certifying that this Lease, as so modified,
     is in full force and effect) and the date to which the rent and other
     charges are paid in advance, if any, and (ii) acknowledging that there are
     not, to the responding party's knowledge, any uncured defaults on the part
     of the requesting party, or specifying such defaults if any are claimed.
     Any such statement may be conclusively relied upon by any prospective
     purchaser or encumbrance of the Office Building Project or of the business
     of Lessee.

                                    - 32 -
<PAGE>

                (b)  At the requesting party's option, the failure to deliver
     such statement within such time shall be a material default of this Lease
     by the party who is to respond, without any further notice to such party,
     and shall give rise to all rights of a non-defaulting party against a
     defaulting party without necessity of further notice or cure period. In
     addition, at the requesting party's option, such failure shall be
     conclusive upon such party that (i) this Lease is in full force and effect,
     without modification except as may be represented by the requesting party,
     (ii) there are no uncured defaults in the requesting party's performance,
     and (iii) if Lessor is the requesting party, not more than one month's rent
     has been paid in advance.

                (c)  If Lessor desires to finance, refinance, or sell the Office
     Building Project, or any part thereof, Lessee hereby agrees to deliver to
     any lender or purchaser designated by Lessor such financial statements of
     Lessee as may be reasonably required by such lender or purchaser. Such
     statements shall include the past three (3) years' financial statements of
     Lessee. All such financial statements shall be received by Lessor and such
     lender or purchaser in strict confidence and shall be used only for the
     purposes herein set forth and thereafter returned without duplication.

          17.   LESSOR'S LIABILITY.  The term "Lessor" as used herein shall
                ------------------
mean only the owner or owners at the time in question, of the fee title or a
lessee's interest in a ground lease of the Office Building Project, and except
as expressly provided in Section 15, in the event of any transfer of such title
or interest, Lessor herein named (and in case of any subsequent transfers then
the grantor) shall be relieved from and after the date of such transfer of all
liability as respects Lessor's obligations thereafter to be performed, provided
that any funds in the hands of Lessor or the then grantor at the time of such
transfer, in which Lessee has an interest, shall be delivered to the grantee.
The obligations contained in this Lease to be performed by Lessor shall, subject
as aforesaid, be binding on Lessor's successors and assigns, only during their
respective periods of ownership.

          18.   SEVERABILITY.  The invalidity of any provision of this Lease as
                ------------
determined by a court of competent jurisdiction shall in no way affect the
validity of any other provision hereof.

          19.   INTEREST ON PAST-DUE OBLIGATIONS.  Except as expressly herein
                --------------------------------
provided, any amount due to Lessor not paid when due shall bear interest at the
maximum rate then allowable by law or judgments from the date due. Payment of
such

                                    - 33 -
<PAGE>

interest shall not excuse or cure any default by Lessee under this Lease;
provided, however, that interest shall not be payable on late charges incurred
by Lessee nor on any amounts upon which late charges are paid by Lessee.

          20.   TIME OF ESSENCE.  Time is of the essence with respect to the
                ---------------
obligations to be performed under this Lease.

          21.   ADDITIONAL RENT.  All monetary obligations of Lessee to Lessor
                ---------------
under the terms of this Lease, including but not limited to Lessee's Share of
Operating Expense and any other expenses payable by Lessee hereunder, shall be
deemed to be rent.

          22.   INCORPORATION OF PRIOR AGREEMENTS; AMENDMENTS.  This Lease and
                ---------------------------------------------
all exhibits hereto contain all agreements of the parties with respect to any
matter mentioned herein. No prior or contemporaneous agreement or understanding
pertaining to any such matter shall be effective. This Lease may be modified in
writing only, signed by the parties in interest at the time of the modification.
Except as otherwise stated in this Lease, Lessee hereby acknowledges that
neither the real estate brokers listed in Section 15 hereof nor any cooperating
broker on this transaction nor the Lessor or any employee or agents of any of
said persons has made any oral or written warranties or representations to
Lessee relative to the condition or use by Lessee of the Premises or the Office
Building Project other than those set forth in this Lease, and Lessee
acknowledges that Lessee assumes all responsibility regarding the Occupational
Safety Health Act, the legal use and adaptability of the Premises and the
compliance thereof with all applicable laws and regulations in effect during the
term of this Lease. It is acknowledged that Lessor shall be responsible for
maintenance and compliance of the elevator and other common areas.

          23.   NOTICES.  Any notice required or permitted to be given hereunder
                -------
shall be in writing and may be given by personal delivery, by certified or
registered mail or by private overnight courier, and shall be deemed
sufficiently given: (i) if delivered by United States mail (certified, return
receipt requested), on the date received as shown on the receipt card or, (ii)
one business day after being deposited with Federal Express or similar private
carrier guaranteeing overnight delivery, cost prepaid; and (iv) in all other
cases when actually received. Either party may be noticed to the other
specifying a different address for notice purposes. A copy of all notices
required or permitted to be given to Lessor or Lessee hereunder shall be
concurrently transmitted to such party or parties at such addresses as Lessor or
Lessee may from time to time hereafter designate to notice to Lessee or Lessor.

                                    - 34 -
<PAGE>

          24.   WAIVERS.  No waiver by either party of any provision hereof
                -------
shall be deemed a waiver of any other provision hereof or of any subsequent
breach of the same or any other provision. Lessor's consent to, or approval of,
any act shall not be deemed to render unnecessary the obtaining of Lessor's
consent to or approval to any subsequent act by Lessee. The acceptance of rent
hereunder by Lessor shall not be a waiver of any preceding breach by Lessee of
any provision hereof, other than the failure of Lessee to pay the particular
rent so accepted, regardless of Lessor's knowledge of such preceding breach at
the time of acceptance of such rent.

          25.   RECORDING.  Each party shall, upon request of the other,
                ---------
execute, acknowledge and deliver to the other a "short form" memorandum of this
Lease for recording purposes.

          26.   NO RIGHT TO HOLD OVER.  Lessee has no right to retain possession
                ---------------------
of the Premises or any part thereof beyond the expiration or earlier termination
of this Lease unless agreed to by the parties. The rent payable during a hold
over shall be 150% of the rent just prior to lease termination.

          27.   CUMULATIVE REMEDIES.  No remedy or election hereunder shall be
                -------------------
deemed exclusive but shall, wherever possible, be cumulative with all other
remedies at law or in equity.

          28.   COVENANTS AND CONDITIONS.  Each provision of this Lease
                ------------------------
performable by Lessee and Lessor shall be deemed both a covenant and a
condition.

          29.   BINDING EFFECT; CHOICE OF LAW.  Subject to any provisions hereof
                -----------------------------
restricting assignment or subletting by Lessee and subject to the provisions of
Section 19, this Lease shall bind the parties, their personal representatives,
successors and assigns. This Lease shall be governed by the laws of the State
where the Office Building Project is located and any litigation concerning this
Lease between the parties hereto shall be initiated in the county in which the
Office Building Project is located.

          30.   SUBORDINATION.
                -------------

                (a)  This Lease, and any Option or right of first refusal
     granted hereby, at Lessor's option, shall be subordinate to any ground
     lease, mortgage, deed of trust, or any other hypothecation or security now
     or hereafter placed upon the Office Building Project and to any and all
     advances made on the security thereof and to all renewals, modifications,
     consolidations, replacements and extensions thereof without requirement
     that Lessee execute any

                                    - 35 -
<PAGE>

     acknowledgment of such subordination. Notwithstanding such subordination,
     Lessee's right to quiet possession of the Premises shall not be disturbed
     if Lessee is not in default and so long as Lessee shall pay the rent and
     observe and perform all of the provisions of this Lease, unless this Lease
     is otherwise terminated pursuant to its terms. If any mortgagee, trustee or
     ground lessor shall elect to have this Lease and the Options granted hereby
     prior to the lien of its mortgage, deed of trust or ground lease, and shall
     give written notice thereof to Lessee, this Lease and such Options shall be
     deemed prior to such mortgage, deed of trust or ground lease, whether this
     Lease or such Options are dated prior or subsequent to the date of said
     mortgage, deed of trust or ground lease or the date of recording thereof
     and whether or not Lessee has executed any acknowledgment of such.

                (b)  Lessee agrees to execute, any reasonable documents
     requested to evidence or effectuate an attornment, a subordination, or to
     make this Lease or any option granted herein prior to the lien of any
     mortgage, deed of trust or ground lease, as the case may be so long as such
     document is consistent with the provisions set forth herein and contains
     Lessee's right to not be disturbed as described herein. Lessee's failure to
     execute such documents within fifteen (15) business days after written
     demand shall constitute a material default by Lessee hereunder without
     further notice to Lessee or any additional cure period and shall give rise
     to all remedies of Lessor arising from a default by Lessee hereunder.

          31.   ATTORNEYS' FEES.
                ---------------

          31.1  Attorneys' Fees.  If either party or the broker(s) named herein
                ---------------
     brings an action to enforce the terms hereof or declare rights hereunder,
     the prevailing party in any such action, trial or appeal thereon, shall be
     entitled to his reasonable attorneys' fees to be paid by the losing party
     as fixed by the court in the same or a separate suit, and whether or not
     such action is pursued to decision or judgment. The provisions of this
     paragraph shall inure to the benefit of the broker named herein who seeks
     to enforce a right hereunder.

          31.2  Reimbursement.  The attorneys' fee award shall not be computed
                -------------
     in accordance with any court fee schedule, but shall be such as to fully
     reimburse all attorneys' fees reasonably incurred in good faith.

                                    - 36 -
<PAGE>

          31.3  Default.  Lessor shall be entitled to reasonable attorneys' fees
                -------
     and all other costs and expenses incurred in the preparation and service of
     notices of default and consultations in connection therewith, whether or
     not a legal action is subsequently commenced in connection with such
     default.

          32.   LESSOR'S ACCESS.
                ---------------

          32.1  Entry Onto Premises.  Lessor and Lessor's agents shall have the
                -------------------
     right to enter the Premises at reasonable times and upon reasonable notice
     for the purpose of inspecting the same, performing any services required of
     Lessor, showing the same to prospective purchasers, lenders, or lessees,
     taking such safety measures, erecting such scaffolding or other necessary
     structures, making such alterations, repairs, improvements or additions to
     the Premises or to the Office Building Project as Lessor may reasonably
     deem necessary or desirable and the erecting, using and maintaining of
     utilities, services, pipes and conduits through the Premises and/or other
     premises as long as there is no material adverse effect to Lessee's use of
     the Premises and provided Lessor shall use reasonable efforts to minimize
     the extent and duration of any interference with Lessee's use of the
     Premises. Notwithstanding anything contained herein to the contrary,
     Lessor's, and its agent's and lender's, access to the Premises shall be
     subject to Lessee's security regulations. Lessor may at any time place on
     or about the Premises or the Building any ordinary "For Sale" signs and
     Lessor may at any time during the last one hundred eighty (180) days of the
     term hereof place on or about the Premises any ordinary "For Lease" signs.

          32.2  Abatement of Rent.  All activities of Lessor pursuant to this
                -----------------
     paragraph shall be without abatement of rent, nor shall Lessor have any
     liability to Lessee for same.

          32.3  Emergency.  In case of emergency, at any time of night or day,
                ---------
     Lessee shall provide Lessor immediate access to the Premises by means of
     Lessee's personnel, security guard, by key or by any reasonably appropriate
     means. Moreover, Lesser shall have the right to enter the Premises in case
     of emergency by any reasonable means, and any such entry shall not be
     deemed a forceable or unlawful entry or detainer of the Premises or an
     eviction. Lessee waives any charges for damages or injuries or interference
     with Lessee's property or business in connection therewith, except for
     damages or injuries due to Lessor's

                                    - 37 -
<PAGE>

     or its Agents' or Contractors' negligence or willful misconduct.

          33.   AUCTIONS.  Lessee shall not conduct, nor permit to be conducted,
                --------
either voluntarily or involuntarily, any auction upon the Premises or the Common
Areas without first having obtained Lessor's prior written consent.
Notwithstanding anything to the contrary in this Lease, Lessor shall not be
obligated to exercise any standard of reasonableness in determining whether to
grant such consent. The holder of any auction on the Premises or Common Areas in
violation of this paragraph shall constitute a material default of this Lease.

          34.   SIGNS.  Lessee shall not place any sign on the Premises or the
                -----
Office Building Project without Lessor's prior written consent, which consent
shall not be unreasonably withheld or delayed. Under no circumstances shall
Lessee place a sign on any roof of the Office Building Project. All such signs
are subject to all covenants, conditions and restrictions and zoning and other
ordinances applicable to the Premises and the prior written consent of Lessor as
to the size, color and other details of any such sign. The Lessor will pay the
cost for sign plates for the sign on Moffett Park Drive and in the building
lobby. Lessee shall be entitled to signage on the South exterior wall with a
design, size and specifications reasonably approved by Lessor.

          35.   MERGER.  The voluntary or other surrender of this Lease by
                ------
Lessee, or a mutual cancellation thereof, or a termination by Lessor, shall not
work a merger, and shall, at the option of Lessor, terminate all or any existing
subtenancies or may, at the option of Lessor, operate as an assignment to Lessor
of any or all of such subtenancies.

          36.   CONSENTS.  Except for Sections 33 (Auctions) and  hereof,
                --------
wherever in this Lease the consent of one party is required to an action of the
other party, such consent shall not be unreasonably withheld, conditioned or
delayed.

          37.   GUARANTOR.  In the event that there is a guarantor of this
                ---------
Lease, said guarantor shall have the same obligations as Lessee under this
Lease.

          38.   QUIET POSSESSION.  Upon Lessee paying the rent for the Premises
                ----------------
and observing and performing all of the covenants, conditions and provisions on
Lessee's part to be observed and performed thereunder, Lessee shall have quiet
possession of the Premises for the entire term hereof subject to all of the
provisions of this Lease. The individuals executing this Lease on behalf of
Lessor represent and warrant to Lessee that they are fully authorized and
legally capable of

                                    - 38 -
<PAGE>

executing this Lease on behalf of Lessor and that such execution is binding upon
all parties holding an ownership interest in the Office Building Project.

          39.   SECURITY MEASURES - LESSOR'S RESERVATIONS.
                -----------------------------------------

          39.1  Security Measures.  Lessee hereby acknowledges that Lessor shall
                -----------------
     have no obligation whatsoever to provide guard service or other security
     measures for the benefit of the Premises or the Office Building Project.
     Lessee assumes all responsibility for the protection of Lessee, its agents,
     and invitees and the property of Lessee and of Lessee's agents and invitees
     from acts of third parties. Nothing herein contained shall prevent Lessor,
     at Lessor's sole option, from providing security protection for the Office
     Building Project or any part thereof, in which event the cost thereof shall
     be included within the definition of Operating Expenses, as set forth in
     Paragraph 4.2(b).

          39.2  Lessor's Reservations.  Lessor shall have the following rights:
                ---------------------

                (a)  To change the name or title of the Office Building Project
     or building in which the Premises are located upon not less than ninety
     (90) days prior written notice;

                (b)  To permit any lessee the exclusive right to conduct any
     business as long as such exclusive does not conflict with any rights
     expressly given herein;

                (c)  To place such signs, notices or displays as Lessor
     reasonably deems necessary or advisable upon the roof, exterior of the
     buildings or the Office Building Project or on pole signs in the Common
     Areas.

          40.   EASEMENTS.
                ---------

          40.1  Lessor's Reservations.  Lessor reserves to itself the right,
                ---------------------
     from time to time, to grant such easements, rights and dedications that
     Lessor deems necessary or desirable, and to cause the recordation of Parcel
     Maps and restrictions, so long as such easements, rights, dedications, Maps
     and restrictions do not unreasonably interfere with the use of the Premises
     by Lessee. Lessee shall sign any of the aforementioned documents upon
     request of Lessor and failure to do so shall constitute a material default
     to this Lease by Lessee without the need for further notice to Lessee.

                                    - 39 -
<PAGE>

          40.2  Obstruction.  The obstruction of Lessee's view, air, or light by
                -----------
     any structure erected in the vicinity of the Building, whether by Lessor or
     third parties, shall in no way affect this Lease or impose any liability
     upon Lessor.

          41.   PERFORMANCE UNDER PROTEST.  If at any time a dispute shall arise
                -------------------------
as to any amount or sum of money to be paid by one party to the other under the
provisions hereof, the party against whom the obligation to pay the money is
asserted shall have the right to make payment "under protest" and such payment
shall not be regarded as a voluntary payment, and there shall survive the right
on the part of said party to institute suit for recovery of such sum. If it
shall be adjudged that there was no legal obligation on the part of said party
to pay such sum or any part thereof, said party shall be entitled to recover
such sum or so much thereof as it was not legally required to pay under the
provisions of this Lease.

          42.   AUTHORITY.  If Lessee is a corporation, trust, or general or
                ---------
limited partnership, Lessee represents and warrants that each individual
executing this Lease on behalf of such entity is duly authorized to execute and
deliver this Lease on behalf of said entity. If Lessee is a corporation, trust
or partnership, Lessee shall, within thirty (30) days after execution of this
Lease, deliver to Lessor evidence of such authority satisfactory to Lessor.

          43.   NO OFFER.  Preparation of this Lease by Lessor or Lessor's agent
                --------
and submission of same to Lessee shall not be deemed an offer to Lessee to
lease. The Lease shall become binding upon Lessor and Lessee only when fully
executed by both parties.

          44.   LENDER MODIFICATION.  Lessee agrees to make such reasonable
                -------------------
modifications to this Lease as may be reasonably required by an institutional
lender in connection with the obtaining of normal financing or refinancing of
the Office Building Project provided, however, such modifications do not
increase the financial obligations of Lessee hereunder or adversely affect the
leasehold interest hereby created or Lessee's reasonable use and enjoyment of
the Premises.

          45.   MULTIPLE PARTIES.  If more than one person or entity is named as
                ----------------
either Lessor or Lessee herein, except as otherwise expressly provided herein,
the obligations of the Lessor or Lessee herein shall be the joint and several
responsibility of all persons or entities named herein as such Lessor or Lessee,
respectively.

          46.   FORCE MAJEURE.  The term "Force Majeure" shall mean only the
                -------------
following events: (i) strikes, boycotts or other

                                    - 40 -
<PAGE>

labor action whether occurring on site or occurring off site or involving the
delivery of labor and materials to the Office Building Project; (ii) inclement
weather; (iii) damage caused by fire, earthquake or other peril; (v) accident,
collapse or explosion; or (vi) government action (e.g., building moratorium) or
extraordinary delay by any governmental entity in issuing required permits
despite the parties' diligent efforts to obtain such permits.

          47.   TENANT IMPROVEMENTS.  Lessee shall be responsible for managing
                -------------------
and constructing the "Tenant Improvements" described and depicted on Exhibit E
to this Lease. Lessee shall use its best efforts to substantially complete the
Tenant Improvements prior to the Commencement Date. Lessor reserves the right to
approve Lessee's final plans, architect and contractor.

          48.   ROOF ACCESS.  Lessee shall have the right with approval of owner
                -----------
which approval will not be unreasonably withheld to install on the roof, at no
additional rent, supplementary HVAC and be responsible for its utilities,
maintenance and repair, and roof repairs directly related to the installation
and maintenance associated with the supplemental HVAC.

          49.   OPTION TO EXPAND.  In addition to any other expansion rights
                ----------------
Lessee may have under this Lease, Lessee shall have the right to lease any space
that becomes available for lease from time to time (an "Expansion Space") in the
Building and in the building located in the parking lot portion of the Office
Building Project referred to as 333-335 Moffett Park Drive, Sunnyvale. In the
event from time to time, any Expansion Space shall become available for lease,
Lessor shall provide Lessee written notice thereof, and Lessee shall have the
right to include such Expansion Space in the Premises at Fair Market Rate and
conditions in the Lease upon giving written notice to Lessor within seven (7)
business days of receiving such notice.

          50.   REASONABLE EXPENDITURES.  Any expenditure by a party permitted
                -----------------------
or required under the Lease, for which such party is entitled to demand and does
demand reimbursement from the other party, shall be limited to the fair market
value of the goods and services involved, shall be reasonably incurred, and
shall be substantiated by documentary evidence available for inspection and
review by the other party or its representative during normal business hours.

                                    - 41 -
<PAGE>

LESSOR AND LESSEE HAVE CAREFULLY READ AND REVIEWED THIS LEASE AND EACH TERM AND
PROVISION CONTAINED HEREIN AND, BY EXECUTION OF THIS LEASE, SHOW THEIR INFORMED
AND VOLUNTARY CONSENT THERETO. THE PARTIES HEREBY AGREE THAT, AT THE TIME THIS
LEASE IS EXECUTED, THE TERMS OF THIS LEASE ARE COMMERCIALLY REASONABLE AND
EFFECTUATE THE INTENT AND PURPOSE OF LESSOR AND LESSEE WITH RESPECT TO THE
PREMISES.

"LESSOR"                            "LESSEE"

Cilker Revocable Trust U.T.A.       Resonate Inc.,
dated October 9, 1990               a California Corporation

By: /s/ William H. Cilker           By: /s/ illegible
   ------------------------------      -------------------------------
  William H. Cilker, trustee

  Title:

By: /s/ Leila A. Cilker
    -----------------------------
  Leila A. Cilker, trustee

  Title:

Lessor's address for notices:       Lessee's address for notices:

William H. Cilker                   Resonate Inc.
Cilker Orchards                     385 Moffett Park Drive
1631 Willow Street, Suite 225       Suite 105
San Jose, CA 95125                  Sunnyvale, CA 94089

                                    - 42 -
<PAGE>

                                   EXHIBIT A

                                 THE PREMISES
                                 ------------

Tenant Improvements for 333 Moffett Park Drive by Dennis Kobza $ Associates,
Inc.  10/26/99

                                    - 43 -
<PAGE>

                                   EXHIBIT B
                                   ---------
                             LEGAL DESCRIPTION OF
                                   BUILDING

The land referred to herein is situated in the State of California, County of
Santa Clara, City of Sunnyvale (and is described as follows):

PARCEL ONE:
ALL OF PARCEL B, as shown upon that certain Map entitled, "Parcel Map being a
resubdivision of Parcel 5 as shown upon that certain Parcel Map recorded in Book
383 of Maps, at page 19, Santa Clara County Records", which Map was filed for
record in the office of the Recorder of the County of Santa Clara, State of
California, on February 13, 1979 in Book 435 of Maps, at page 28.

PARCEL TWO:
An easement for utilities over the Easterly 10 feet of Parcel A, as said parcel
is shown on the map above referred to, as reserved in the Deed from Control Data
Corporation to Humboldt Court Associates Six, recorded February 21, 1979 in Book
E295 of Official Records, page 284.

                                    - 44 -
<PAGE>

                                   EXHIBIT C
                             RULES AND REGULATIONS

                                 GENERAL RULES
                                 -------------

          1.    Lessee shall not suffer or permit the obstruction of any Common
Areas, including driveways, walkways and stairs.

          2.    Lessor reserves the right to refuse access to any persons Lessor
in good faith judges to be a threat to the safety, reputation, or property of
the Office Building Project and its occupants.

          3.    Lessee shall not make or permit any noise or odors that annoy or
interfere with other lessees or persons having business within the Office
Building Project.

          4.    Lessee shall not keep animals or birds within the Office
Building Project, and shall not bring bicycles, motorcycles or other vehicles
into areas not designated as authorized for same.

          5.    Lessee shall not make, suffer or permit litter except in
appropriate receptacles for that purpose.

          6.    Lessee shall not alter any lock or install new or additional
locks or bolts without first advising Lessor.

          7.    Lessee shall be responsible for the inappropriate use of any
toilet rooms, plumbing or other utilities.  No foreign substances of any kind
are to be inserted therein.

          8.    Lessee shall not deface the walls, partitions or other surfaces
of the Premises or Office Building Project.

          9.    Lessee shall not suffer or permit any thing in or around the
Premises or Building that causes excessive vibration or floor loading in any
part of the Office Building Project.

          10.   Significant freight and equipment shall be moved into or out of
the building only with the Lessor's knowledge and consent, and subject to such
reasonable limitations, techniques and timing, as may be designated by Lessor.
Lessee shall be responsible for any damage to the Office Building Project
arising from any such activity.

                                    - 45 -
<PAGE>

          11.   Lessee shall not employ any service or contractor for services
or work to be performed in the Building, that is not reasonably acceptable to
Lessor.

          12.   Lessee shall return all keys at the termination of its tenancy
and shall be responsible for the cost of replacing any keys that are lost.

          13.   No window coverings, shades or awnings shall be installed or
used by Lessee, other than those installed in the Building upon occupancy,
without Lessor's prior written consent.

          14.   No Lessee, employee or invitee shall go upon the roof of the
Building.

          15.   Lessee shall not suffer or permit smoking or carrying of lighted
cigars or cigarettes in areas reasonably designated by Lessor or by applicable
governmental agencies as non-smoking areas.

          16.   Lessee shall not use any method of heating or air conditioning
other than as provided by Lessor.

          17.   Lessee shall notify Lessor prior to the installation of any
vending machines upon the Premises.

          18.   The Premises shall not be used for lodging or manufacturing.

          19.   Lessee shall comply with all safety, fire protection and
evacuation regulations established by Lessor or any applicable governmental
agency.

          20.   Lessor reserves the right to waive any one of these rules or
regulations, and/or as to any particular Lessee, and any such waiver shall not
constitute a waiver of any other rule or regulation or any subsequent
application thereof to such Lessee.

          21.   Lessee assumes all risks from theft or vandalism and agrees to
keep its Premises locked as may be required.

          22.   Lessor reserves the right to make such other reasonable rules
and regulations as it may from time to time deem necessary for the appropriate
operation and safety of the Office Building Project and its occupants. Lessee
agrees to abide by these and such rules and regulations.

                                    - 46 -
<PAGE>

                                   EXHIBIT D

                                 PARKING RULES

          1.    Parking areas shall be used only for parking by vehicles no
longer than full size, passenger automobiles herein called "Permitted Size
Vehicles".

          2.    Lessee shall not permit or allow any vehicles that belong to or
are controlled by Lessee or Lessee's employees, suppliers, shippers, customers,
or invitees to be loaded, unloaded, or parked in areas other than those
designated by Lessor for such activities.

          3.    Users of the parking area will obey all posted signs and park
only in the areas designated for vehicle parking.

          4.    Unless otherwise instructed, every person using the parking area
is required to park and lock his own vehicle.  Lessor will not be responsible
for any damage to vehicles, injury to persons or loss of property, all of which
risks are assumed by the party using the parking area.

          5.    The maintenance, washing, waxing or cleaning of vehicles in the
parking facility or Common Area is prohibited.

          6.    Lessee shall be responsible for seeing that all its employees,
agents and invitees comply with the applicable parking rules, regulations and
laws and agreements.

          7.    Lessor reserves the right to modify these rules and/or adopt
such other reasonable and non-discriminatory rules and regulations as it may
deem necessary for the proper operation of the parking area.

          8.    Such parking use as is herein provided is intended merely as a
license only and no bailment is intended or shall be created hereby.

                                    - 47 -
<PAGE>

                                   EXHIBIT E
                        FINAL PLANS AND SPECIFICATIONS

The Final Plans, Drawings and Specifications are to be mutually approved by both
Lessor and Lessee, subject to those changes outlined in Paragraph 2.B herein.

                                    - 48 -
<PAGE>

                                   EXHIBIT F
                         COMMENCEMENT DATE MEMORANDUM
                         ----------------------------

Lessor:   Cilker Revocable Trust U.T.A. dated October 9, 1990
          ---------------------------------------------------

Lessee:   Resonate Inc., a California Corporation
          ---------------------------------------------------

Lease Date:__________________________________________________

Premises: 385 Moffett Park Drive, Suite 210
          ---------------------------------------------------
          Sunnyvale, California 94089
          ---------------------------------------------------

          Pursuant to Paragraph 4.A. of the above-referenced Lease, the
Commencement Date is hereby established as __________, 1999.

                                    LESSOR:
                                    ------
  Cilker Revocable Trust

  U.T.A. dated October 9, 1990

  By:____________________________

  William H. Cilker, trustee

  By:____________________________

  Leila A. Cilker, trustee

  LESSEE: Resonate Inc.
  ------

  By:____________________________

  Its:___________________________

                                    - 49 -
<PAGE>

                                   EXHIBIT G
                              JANITORIAL SERVICES
                              -------------------

                              JANITORIAL SERVICES

                                     Daily
                                     -----

Empty wastepaper baskets
Sweep or dust mop with treated cloth all floor surfaces
Properly arrange furniture in offices
Damp-wipe spillage on resilient floors
Clean entranceways, lobby, entrance mats
Spot-clean entrance glass and polish entrance chrome
Clean restrooms, wash basins, dispensers, and chrome fittings
Clean mirrors and frame
Wet mop floors
Sanitize toilets, toilet seats and urinals
Refill all restroom dispensers
Wash and wipe dry all drinking fountains

                                  One a Week
                                  ----------
                                  (Wednesday)

Dust ledges and partitions

                              Three Times a Week
                              ------------------
                         (Monday - Wednesday - Friday)

Vacuum clean all carpeted areas

                                    Weekly
                                    ------

Spot wash partitions, walls and doors
Wipe telephones
Remove fingerprints from woodwork, walls & partitions
Spot clean carpets
Spot clean all partition glass
Dust ledges and partitions
Dust desks, chairs, tables, and other furniture with treated cloth
Dust all ledges and other flat surfaces within reach
Dust high partition ledges and moldings
Chair mats removed and vacuumed under

                                    - 50 -
<PAGE>

                               Monthly Services
                               ----------------

                              Dust ceiling vents
                              ------------------

Vacuum all upholstered furniture
High dusting
Vacuum with cervices tool all carpet and corners

                Additional Services available at additional fee
                -----------------------------------------------

Hauling boxes, trash and office furniture
Special or additional cleaning requests
Special supplies ordered and delivered
Any other service not listed on this list of duties.

                                    - 51 -
<PAGE>

                                   EXHIBIT H
                                   ---------

                              Tenant Improvements
                              -------------------

                                    - 52 -

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