Document:

<PAGE>

                                                                    EXHIBIT 10.5

                                INTERVIDEO, INC.

                              AMENDED AND RESTATED

                           INVESTORS RIGHTS AGREEMENT

                                  July 2, 1999

<PAGE>

                                INTERVIDEO, INC.

                 AMENDED AND RESTATED INVESTORS RIGHTS AGREEMENT

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
<S>                                                                           <C>
1.      CERTAIN DEFINITIONS ...............................................    1
        1.1      "1934 Act" ...............................................    1
        1.2      "Affiliate" ..............................................    1
        1.3      "Commission" .............................................    2
        1.4      "Common Stock" ...........................................    2
        1.5      "Conversion Shares" ......................................    2
        1.6      "Holder" or "Holders" ....................................    2
        1.7      "Preferred Agreement" ....................................    2
        1.8      "Preferred Stock" ........................................    2
        1.9      "Register", "Registered" and "Registration" ..............    2
        1.10     "Registrable Securities" .................................    2
        1.11     "Registration Expenses" ..................................    2
        1.12     "Restricted Securities" ..................................    2
        1.13     "Securities" .............................................    2
        1.14     "Securities Act" .........................................    2
        1.15     "Selling Expenses" .......................................    3

2.      RESTRICTIONS ON TRANSFERABILITY OF SECURITIES;
        COMPLIANCE WITH SECURITIES ACT ....................................    3
        2.1      Restrictions on Transferability ..........................    3
        2.2      Restrictive Legend .......................................    3
        2.3      Notice of Proposed Transfers .............................    3
        2.4      Company Registration .....................................    4
        2.5      S-3 Registrations ........................................    5
        2.6      Expenses of Registration .................................    5
        2.7      Registration Procedures ..................................    6
        2.8      Indemnification ..........................................    6
        2.9      Information by Holder ....................................    7
        2.10     Rule 144 Reporting .......................................    7
        2.11     Assignment of Registration Rights ........................    8
        2.12     Termination of Registration Rights .......................    8
        2.13     "Market Stand-Off" Agreement .............................    8

3.      NEW ISSUANCE RIGHT OF FIRST REFUSAL ...............................    9
        3.1      Right ....................................................    9
        3.2      Notification .............................................    9
        3.3      Waiver ...................................................    9
        3.4      Issuance .................................................   10
        3.5      Excluded Securities ......................................   10
        3.6      Termination ..............................................   10
</TABLE>

                                       i

<PAGE>

<TABLE>
<S>                                                                         <C>
     3.7    Assignment ...................................................  10

4.   FINANCIAL INFORMATION ...............................................  10
     4.1    Financial Information ........................................  10
     4.2    Operating Plan ...............................................  11
     4.3    Visitation Rights ............................................  11
     4.4    Assignment ...................................................  11
     4.5    Termination ..................................................  11

5.   MISCELLANEOUS .......................................................  12
     5.1    Governing Law ................................................  12
     5.2    Survival .....................................................  12
     5.3    Successors and Assigns .......................................  12
     5.4    Entire Agreement; Amendment ..................................  12
     5.5    Notices, Etc .................................................  12
     5.6    Delay or Omissions ...........................................  12
     5.7    Expenses .....................................................  13
     5.8    Counterparts .................................................  13
     5.9    Severability .................................................  13

EXHIBIT A

     PREFERRED INVESTORS .................................................  14
</TABLE>

                                       ii

<PAGE>

                                INTERVIDEO, INC.

                 AMENDED AND RESTATED INVESTORS RIGHTS AGREEMENT

         This Amended and Restated Investors Rights Agreement is made as of
July 2, 1999 (the "Agreement") by and among InterVideo, Inc., a California
corporation (the "Company"), and each of the persons listed on Exhibit A to this
                                                               ---------
Agreement (the "Investors" or the "Holders").

                                    RECITALS
                                    --------

         A. The Company and certain of the Investors (the "Existing Holders")
have previously entered into an Investors Rights Agreement dated as of June 29,
1998 and Amendment No.1 to the Investors Rights Agreement dated July 29, 1998,
providing certain registration and other rights to the Existing Investors (the
"Prior Agreement").

         B. The Company desires to sell and issue to certain Investors (the
"Additional Investors") and the Additional Investors desire to purchase up to an
aggregate of 2,000,000 shares of Series C Preferred Stock (the "Shares") of the
Company pursuant to the Preferred Agreement (as defined herein).

         C. To induce the Additional Investors to purchase shares of Series C
Preferred Stock of the Company pursuant to the Preferred Agreement, the Company
and the Existing Investors desire that the Company grant to the Additional
Investors the registration and other rights set forth herein, and further desire
to amend and restate the Prior Agreement as set forth below.

         D. The Company and all Investors agree that this Agreement will govern
the registration and other rights of all Investors.

         In consideration of the foregoing and the promises and covenants
contained herein, the parties agree as follows:

                                   SECTION 1

                               CERTAIN DEFINITIONS
                               -------------------

         As used in this Agreement the following terms shall have the following
respective meanings:

         1.1 "1934 Act" shall mean the Securities Exchange Act of 1934, as
              --------
amended, or any similar federal statute and the rules and regulations of the
Commission thereunder, all as the same shall be in effect at the time.

                                       2

<PAGE>

         1.2  "Affiliate" shall mean any entity who is controlled by, who
               ---------
controls or who is under common control with a person.

         1.3  "Commission" shall mean the Securities and Exchange Commission or
               ----------
any other federal agency at the time administering the Securities Act.

         1.4  "Common Stock" shall mean the Common Stock of the Company.
               ------------

         1.5  "Conversion Shares" means the Common Stock issued or issuable upon
               -----------------
conversion of the Preferred Stock.

         1.6  "Holder" or "Holders" shall mean any person or persons owning or
               -------------------
having the right to acquire Registrable Securities or any assignee thereof in
accordance with Section 2 hereof.

         1.7  "Preferred Agreement" shall collectively mean Preferred Stock
               -------------------
Subscription Agreements among the Company and the Investors under such
subscription agreements.

         1.8  "Preferred Stock" shall mean shares of the Company's Preferred
               ---------------
Stock issued pursuant to the Preferred Agreement.

         1.9  "Register", "Registered" and "Registration" refer to a
               --------    ----------       ------------
registration effected by preparing and filing a registration statement in
compliance with the Securities Act, and the declaration or ordering of the
effectiveness of such registration statement.

         1.10 "Registrable Securities" shall mean (i) Conversion Shares and (ii)
               ----------------------
any Common Stock issued in respect of, in exchange for or in replacement of the
Conversion Shares or other securities issued pursuant to the conversion of the
Preferred Stock upon any stock split, stock combination, stock dividend,
recapitalization, consolidation or similar event. Securities previously sold to
the public pursuant to a registered public offering or Rule 144 of the
Securities Act shall cease to be Registrable Securities.

         1.11 "Registration Expenses" shall mean all expenses incurred in
               ---------------------
complying with registrations, filings or qualifications under Sections 2.4 and
2.5 hereof, including, without limitation, all registration, qualification and
filing fees, accounting fees, printing expenses, escrow fees, fees and
disbursements of counsel for the Company, blue sky fees and expenses, the
expense of any special audits incident to or required by any such registration
(but excluding the compensation of regular employees of the Company and Selling
Expenses).

         1.12 "Restricted Securities" shall mean the securities of the Company
               ---------------------
required to bear the legend set forth in Section 2.2 hereof (or any similar
legend).

         1.13 "Securities" shall mean (i) the Company's equity or debt
               ----------
securities, (ii) rights, options or warrants to subscribe for, purchase or
otherwise acquire any equity or debt security of the Company and (iii) any
agreement or commitment to issue any of the foregoing.

                                       3

<PAGE>

         1.14 "Securities Act" shall mean the Securities Act of 1933, as
               --------------
amended, or any similar federal statute and the rules and regulations of the
Commission thereunder, all as the same shall be in effect at the time.

         1.15 "Selling Expenses" shall mean all underwriting discounts and
               ----------------
selling commissions applicable to the sale and all fees and disbursements of
counsel for any Holder.

                                   SECTION 2

                 RESTRICTIONS ON TRANSFERABILITY OF SECURITIES;
                 ----------------------------------------------
                         COMPLIANCE WITH SECURITIES ACT
                         ------------------------------

         2.1  Restrictions on Transferability. The Preferred Stock and the
              -------------------------------
Conversion Shares shall not be transferable except upon the conditions specified
in this Section 2, which conditions are intended to ensure compliance with the
provisions of the Securities Act, or, in the case of Section 2.13 hereof, to
assist in an orderly distribution. Each Investor will cause any proposed
transferee of the Preferred Stock and the Conversion Shares held by such
Investor to agree to take and hold such securities subject to the provisions and
upon the conditions specified in this Section 2 (including the "market
stand-off" provisions of Section 2.13).

         2.2  Restrictive Legend. Each certificate representing (i) the
              ------------------
Preferred Stock, (ii) Conversion Shares and (iii) any other securities issued in
respect of the Preferred Stock or Conversion Shares or Common Stock issuable
upon any stock split, stock combination, stock dividend, recapitalization,
consolidation or similar event, shall (unless otherwise permitted by the
provisions of Section 2.3 below) be stamped or otherwise imprinted with a legend
in substantially the following form (in addition to any legend required under
applicable state securities laws):

     THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR
     INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933.
     SUCH SHARES MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH
     REGISTRATION OR AN EXEMPTION THEREFROM UNDER SAID ACT. COPIES OF THE
     AGREEMENT COVERING THE PURCHASE OF THESE SHARES AND RESTRICTING THEIR
     TRANSFER MAY BE OBTAINED AT NO COST BY WRITTEN REQUEST MADE BY THE HOLDER
     OF RECORD OF THIS CERTIFICATE TO THE SECRETARY OF THE CORPORATION AT THE
     PRINCIPAL EXECUTIVE OFFICE.

         2.3  Notice of Proposed Transfers. The holder of each certificate
              ----------------------------
representing Restricted Securities agrees to comply in all respects with the
provisions of this Section 2.3. Prior to any proposed transfer of any Restricted
Securities (unless there is in effect a registration statement under the
Securities Act covering the proposed transfer), the holder thereof shall give
written notice to the Company of such holder's intention to effect such
transfer. Each such notice

                                       4

<PAGE>

shall describe the manner and circumstances of the proposed transfer in
sufficient detail, and (except in transactions in compliance with Rule 144)
shall be accompanied by either (i) a written opinion of legal counsel who shall
be reasonably satisfactory to the Company addressed to the Company and
reasonably satisfactory in form and substance to the Company's counsel, to the
effect that the proposed transfer of the Restricted Securities may be effected
without registration under the Securities Act, or (ii) a "no action" letter from
the Commission to the effect that the transfer of such securities without
registration will not result in a recommendation by the staff of the Commission
that action be taken with respect thereto, whereupon the holder of such
Restricted Securities shall be entitled to transfer such Restricted Securities
in accordance with the terms of the notice delivered by the holder to the
Company. Each certificate evidencing the Restricted Securities transferred
pursuant to the above shall bear the legend set forth in Section 2.2 above,
except that such certificate shall not bear such restrictive legend, if in the
opinion of counsel for the Company, such legend is not required in order to
establish compliance with any provisions of the Securities Act.

         2.4  Company Registration.
              --------------------

         (a)  Registration. If at any time or from time to time, the Company
              ------------
shall determine to register any of its securities, either for its own account or
the account of a security holder or holders exercising their respective demand
registration rights, other than (i) a registration on Form S-8 (or a similar or
successor form) relating solely to employee stock option, stock purchase or
other benefit plans, or (ii) a registration on Form S-4 (or similar or successor
form) relating solely to a Securities and Exchange Commission Rule 145
transaction, the Company will:

              (i)  promptly give to each Holder written notice thereof; and

              (ii) include in such registration (and any related qualification
under blue sky laws or other compliance), and in any underwriting involved
therein, all the Registrable Securities specified in a written request or
requests, made within twenty (20) days after mailing of written notice by the
Company, by any Holder or Holders, except as set forth in Section 2.4(b) below.

         (b)  Underwriting. If the registration of which the Company gives
              ------------
notice is for a registered public offering involving an underwriting, the
Company shall so advise the Holders as a part of the written notice given
pursuant to Section 2.4(a)(i). In such event the right of any Holder to
registration pursuant to Section 2.4 shall be conditioned upon such Holder's
participation in such underwriting and the inclusion of such Holder's
Registrable Securities in the underwriting to the extent provided herein.

              All Holders proposing to distribute their securities through such
underwriting shall (together with the Company and the other holders distributing
their securities through such underwriting) enter into an underwriting agreement
in customary form with the underwriter or underwriters selected for such
underwriting by the Company. Notwithstanding any other provision of this Section
2.5, if the managing underwriter determines that marketing factors require a
limitation of the number of shares to be underwritten, the underwriter may limit

                                       5

<PAGE>

the number of Registrable Securities to be included in the registration and
underwriting, on a pro rata basis based on the total number of securities
(including, without limitation, Registrable Securities) entitled to registration
pursuant to registration rights granted to the participating Holders by the
Company; provided, however, that no such reduction may reduce the number of
securities being sold by the Company for its own account. The number of
securities includable by any Holder or other person may, in the discretion of
the underwriters, be rounded to the nearest one hundred (100) shares. No
securities excluded from the underwriting by reason of the underwriter's
marketing limitation shall be included in such registration.

         If any Holder disapproves of the terms of any such underwriting, he may
elect to withdraw therefrom by written notice to the Company and the
underwriter. Any securities excluded or withdrawn from such underwriting shall
be withdrawn from such registration.

         If the underwriter has not limited the number of shares to be
underwritten for the Company's account and the account of the Holders, the
Company may include securities for the account of employees, officers, directors
and consultants.

         2.5  S-3 Registrations. If the Company is requested (and qualifies
                  -------------
under applicable SEC rules) to undertake a Form S-3 or equivalent short-form
registration, regardless of its designation, and any related qualification or
compliance, of its securities by the Holders of Registrable Securities holding
in aggregate at least 2% of the Company's Common Stock for an offering estimated
to result in aggregate offering proceeds of at least $500,000, net of
allowances, discounts, and underwriting expenses, the Company shall promptly
give notice of such proposed registration to all Holders of Registrable
Securities and the Company shall, as expeditiously as possible, use its best
efforts to effect the registration on Form S-3 of the Registerable Securities
which the Company has been requested to register (i) in each request and (ii) in
any response given within twenty (20) days to a notice from the Company pursuant
to this Section 2.5. Notwithstanding the foregoing, however, such registration
shall be subject to the following:

         (a)  The Company shall not be required to effect more than one such
registration pursuant to this Section 2.5 in any 12 month period.

         (b)  The Company shall not be required to effect a registration
pursuant to this Section 2.5 within one hundred eighty (180) days of the
effective date of any registration referred to in Section 2.4.

         The Company may include in the registration under this Section 2.5 any
other shares of Common Stock (including issued and outstanding shares of Common
Stock as to which the holders thereof have contracted with the Company for
"piggyback" registration rights) so long as the inclusion in such registration
of such shares will not, in the opinion of the managing underwriter (or in the
reasonable opinion of the Company in the event that the offering is not
underwritten), interfere with the successful marketing in accordance with the
intended method of sale or other disposition of all the shares of Registrable
Securities sought to be registered by the Holder or Holders of Registrable
Securities pursuant to this Section 2.5. If it is determined as provided above
that there will be such interference, the other shares of Common Stock sought to

                                       6

<PAGE>

be included by the Company shall be excluded to the extent deemed necessary by
the managing underwriter (or the Company if the offering is not underwritten),
and all other shares of Common Stock held by other parties shall be excluded
before the exclusion of any shares of Registrable Securities held by the Holders
who desire to have their shares included in the registration and offering. If,
as contemplated above, and after excluding all other shares of Common Stock held
by other parties, shares of the Common Stock of the Holders are to be excluded,
the number of shares of Common Stock of each participating Holder which are to
be excluded shall be proportionate to the number of shares which such party is
seeking to register.

         2.6  Expenses of Registration. All Registration Expenses incurred in
              ------------------------
connection with any registration, qualification or compliance pursuant to this
Section 2 shall be borne by the Company; and, unless otherwise stated, all
Selling Expenses relating to securities registered by the Holders shall be borne
by the Holders of such securities pro rata on the basis of the number of shares
so registered.

         2.7  Registration Procedures. In the case of each registration,
              -----------------------
qualification or compliance effected by the Company pursuant to this Section 2,
the Company will keep each Holder advised in writing as to the initiation of
each registration, qualification and compliance and as to the completion
thereof. At its expense the Company will:

         (a)  Keep such registration, qualification or compliance effective for
a period of one hundred twenty (120) days or until the Holder or Holders have
completed the distribution described in the registration statement relating
thereto, whichever first occurs; and

         (b)  Furnish such number of prospectuses and other documents incident
thereto as a Holder from time to time may reasonably request.

         2.8  Indemnification.
              ---------------

         (a)  The Company will, and does hereby undertake to, indemnify and hold
harmless each Holder, each of its officers, directors and partners, and each
person controlling such Holder within the meaning of Section 15 of the
Securities Act, with respect to which registration, qualification or compliance
has been effected pursuant to this Section 2, and each underwriter, if any, and
each person who controls any underwriter within the meaning of Section 15 of the
Securities Act, against all expenses, claims, losses, damages and liabilities
(or actions in respect thereof), including settlement of any litigation,
commenced or threatened, to which they may become subject under the Securities
Act, the 1934 Act, or other federal or state law, arising out of or based on
compliance with, any untrue statement (or alleged untrue statement) of a
material fact contained in any registration statement, prospectus (preliminary
or final), offering circular or other document or amendments thereto, or arising
out of or based on any omission (or alleged omission) to state therein a
material fact required to be stated therein or necessary to make the statements
therein, in light of the circumstances in which they were made, not misleading,
or arising out of or any violation by the Company of any federal, state or
common law rule or regulation applicable to the Company and relating to action
or inaction required of the Company in connection with any such registration,
qualification or compliance, and will reimburse each such Holder, each of its
officers, directors and partners, and each person

                                       7

<PAGE>

controlling such Holder, each such underwriter and each person who controls any
such underwriter, for any legal and any other expenses reasonably incurred in
connection with investigating, preparing or defending any such claim, loss,
damage, liability or action, provided that the Company will not be liable in any
such case to the extent that any such claim, loss, damage, liability or expense
arises out of or is based on any untrue statement or omission or alleged untrue
statement or omission, made in reliance upon and in conformity with written
information furnished to the Company by an instrument executed by such Holder or
underwriter expressly for use in connection with such registration.

         (b) Each Holder will, if Registrable Securities held by such Holder are
included in the securities as to which such registration, qualification or
compliance is being effected, indemnify and hold harmless the Company, each of
its directors and officers, agents and employees, each underwriter, if any, of
the Company's securities covered by such a registration statement, each person
who controls the Company or such underwriter within the meaning of Section 15 of
the Securities Act, and each other such Holder, each of its officers, directors
and partners and each person controlling such Holder within the meaning of
Section 15 of the Securities Act, against all claims, losses, damages and
liabilities (or actions in respect thereof to which they may become subject)
arising out of or based on any untrue statement (or alleged untrue statement) of
a material fact contained in any such registration statement, prospectus,
offering circular or other document, or amendments thereto, or any omission (or
alleged omission) to state therein a material fact required to be stated therein
in light of the circumstances in which they were made, or necessary to make the
statements therein, not misleading, and will reimburse the Company, such
Holders, such directors, officers, persons, underwriters or control persons for
any legal or any other expenses reasonably incurred in connection with
investigating or defending any such claim, loss, damage, liability or action, in
each case to the extent, but only to the extent, that such untrue statement (or
alleged untrue statement) or omission (or alleged omission) is made in such
registration statement, prospectus, offering circular or other document in
reliance upon and in conformity with written information furnished to the
Company by an instrument executed by such Holder expressly for use in connection
with such registration; provided, however, that the obligations of such Holders
hereunder shall be limited to an amount equal to the proceeds to each such
Holder of Registrable Securities from the sale of such Registrable Securities as
contemplated herein.

         (c) Each party entitled to indemnification under this Section 2.8 (the
"Indemnified Party") shall give notice to the party required to provide
indemnification (the "Indemnifying Party") promptly after such Indemnified Party
has actual knowledge of any claim as to which indemnity may be sought, and shall
deliver written notice to the Indemnifying Party of commencement thereof. The
Indemnifying Party, at its sole option, may participate in or assume the defense
of any such claim or any litigation resulting therefrom with counsel reasonably
satisfactory to the Indemnified Party, and the Indemnified Party may participate
in such defense at Indemnified Party's expense. The failure of any Indemnified
Party to give notice as provided herein shall not relieve the Indemnifying Party
of its obligations under this Section 2 except to the extent that such failure
to give notice shall materially adversely affect the Indemnifying Party in the
defense of any such litigation. No Indemnifying Party, in the defense of any
such claim or litigation shall, except with the consent of each Indemnified
Party, consent to entry of any judgment or enter into any settlement which does
not include as an unconditional

                                       8

<PAGE>

term a release from all liability in respect to such claim or litigation by
the claimant or plaintiff to such Indemnified Party.

         2.9   Information by Holder. Each Holder of Registrable Securities
               ---------------------
included in any registration shall furnish to the Company such information
regarding such Holder and the distribution proposed by such Holder as the
Company may reasonably request in writing and as shall be required in connection
with any registration, qualification or compliance referred to in this Section
2.

         2.10  Rule 144 Reporting. With a view to making available the benefits
               ------------------
of certain rules and regulations of the Commission which may at any time permit
the sale of the Restricted Securities to the public without registration, the
Company agrees to:

         (a)   Register its Common Stock under Section 12(g) of the 1934 Act, as
amended, as soon as practicable, but in any event not later than ninety (90)
days after the close of the Company's first fiscal year following the effective
date of the first registration statement filed by the Company, relating to a
public offering other than to employees of the Company under an employee option
plan or employee stock purchase plan;

         (b)   Make and keep public information available, as those terms are
understood and defined in Rule 144 under the Securities Act, at all times after
the effective date of the first registration under the Securities Act filed by
the Company for an offering of its securities to the general public;

         (c)   Will file with the Commission in a timely manner all reports and
other documents required of the Company under the Securities Act and the 1934
Act (at any time after it has become subject to such reporting requirements);
and

         (d)   Furnish to the Holder, so long as Holder owns any Restricted
Securities, written notice of the Company's qualification as a registrant, as
soon as practicable after the such qualification; the Company further shall
furnish forthwith upon request a written statement as to its compliance with the
reporting requirements of said Rule 144 (at any time after ninety (90) days
after the effective date of the first registration statement filed by the
Company for an offering of its securities to the general public), and of its
compliance with the Securities Act and the Securities Exchange Act (at any time
after it has become subject to such reporting requirements); the Company shall
provide forthwith upon written request a copy of the most recent annual or
quarterly report of the Company, and such other reports and documents of the
Company as Purchaser may reasonably request in availing itself of any rule or
regulation of the Commission allowing Purchaser to sell any such securities
without registration.

         2.11  Assignment of Registration Rights. The rights to cause the
               ---------------------------------
Company to register securities and related rights granted each Investor under
Section 2 may not be assigned except: (i) to a purchaser of more than 200,000
shares of the Common Stock (as determined in the manner contemplated by Section
3.1(b) below) purchased by an Investor, (ii) to a successor entity to an
Investor pursuant to a reorganization or recapitalization of an Investor, (iii)
to an Affiliate, (iv) to the partners of an Investor (provided that such holder
owns at least 200,000

                                       9

<PAGE>

shares following such distribution) or (v) pursuant to an intervivos
transfer to Investor's ancestors or descendants or spouse or to a trustee for
their benefit; provided, that the Company receives notice within twenty (20)
days following such assignment.

         2.12  Termination of Registration Rights. The registration rights and
               ----------------------------------
related rights granted pursuant to Section 2 shall terminate as to each Holder
(and permitted transferee under Section 2.12 above) upon the occurrence of any
of the following:

         (a)   Following the Company's first registered offering to the public,
at such time as all Restricted Securities held by such Investor or permitted
transferee can be sold within a given six (6) month period without compliance
with the registration requirements of the Securities Act pursuant to Rule 144
(or its successor provision); or

         (b)   Eight (8) years from the date of this Agreement.

         2.13  "Market Stand-Off" Agreement. Any Holder of more than one percent
                ---------------------------
(1%) of the outstanding Common Stock of the Company (determined in the manner of
Section 3.1(b)), if required by the Company and an underwriter of Common Stock
(or other securities) of the Company, shall agree not to sell or otherwise
transfer or dispose of any Common Stock (or other securities) of the Company
held by such Holder during the period not to exceed one hundred and eighty (180)
days as requested by the managing underwriter following the effective date of
the first registration statement of the Company filed under the Securities Act,
provided that all officers, directors of the Company and holders of one percent
(1%) or more of the Company's outstanding shares enter into similar agreements.
Such agreement shall be in writing in the form satisfactory to the Company and
such underwriter. The Company may impose a stop-transfer instruction with
respect to the shares (or other securities) subject to the foregoing restriction
until the end of such period.

                                   SECTION 3

                       NEW ISSUANCE RIGHT OF FIRST REFUSAL
                       -----------------------------------

         3.1   Right.
               -----

         (a)   If, at any time prior to the expiration of the period set forth
in Section 3.6 below, the Company should desire to issue any Securities in a
transaction not registered under the Securities Act, it shall give each Investor
the first right to purchase such Investor's Pro Rata Share (as defined below),
of all of such Securities on the same terms and same price as the Company is
willing to sell such Securities to any other person. Such Investor's "Pro Rata
Share" of the Securities shall be equal to that percentage of the outstanding
Common Stock of the Company held by such Investor, on the date of the Company's
written notification referred to in Section 3.2 below.

         (b)   For purposes of this Section 3.1, the Common Stock of the Company
held by such Investor shall be adjusted for stock dividends, stock splits, stock
combinations, recapitalizations and the like, and shall be deemed to include
shares of Common Stock issued or

                                       10

<PAGE>

issuable upon conversion of the Preferred Stock or any other stock of the
Company on an as-converted basis.

         3.2   Notification. Prior to any sale or issuance by the Company of any
               ------------
Securities, the Company shall notify each Investor, in writing, of its intention
to sell and issue such securities, setting forth in reasonable detail the terms,
price and description under which it proposes to make such sale. Within fifteen
(15) days there after, Investor shall notify the Company whether Investor
exercises Investor's option and elects to purchase such Investor's Pro Rata
Share (or any part thereof) of the Securities so offered.

         3.3   Waiver. If, within fifteen (15) days after the Company gives
               ------
notice pursuant to Section 3.2 above, the Investor does not notify the Company
that such Investor desires to purchase all of its Pro Rata Share of the
Securities described in such notice upon the terms and conditions set forth
therein, the Company may, during a period of ninety (90) days following the end
of such fifteen (15) day period, sell and issue such Securities as to which
Investor does not indicate a desire to purchase to another person upon the same
terms and conditions as those set forth in the notice to Investor but at a price
at least as great as the price offered to the Investors; provided, that failure
by the Investor to exercise its option to purchase with respect to one offering,
sale and issuance shall not affect its option to purchase Securities in any
subsequent offering, sale and purchase. In the event the Company has not sold
the Securities, or entered into a binding agreement to sell the Securities,
within such ninety (90) day period, the Company shall not thereafter issue or
sell any Securities without first offering such securities to Investor in the
manner provided above.

         3.4   Issuance. If an Investor gives the Company notice that such
               --------
Investor desires to purchase any of the Securities offered by the Company,
payment for the Securities shall be by check or wire transfer, against delivery
of the Securities at the executive offices of the Company within ten (10) days
after giving the Company such notice, or if later, the closing date for the sale
of such Securities. The Company shall take all such action as may be required by
any regulatory authority in connection with the exercise by Investor of the
right to purchase Securities as set forth in this Section 3, but the right of an
Investor is subject to the Company's reasonable compliance with regulatory
requirements.

         3.5   Excluded Securities. The right of first refusal contained in this
               -------------------
Section 3 shall not apply to the following: (a) the issuance by the Company of
(i) up to 6,000,000 shares of Common Stock to officers, directors, or employees
of, or consultants or contractors to, the Company pursuant to a stock grant,
option plan or purchase plan or other stock incentive program approved by the
Company's Board of Directors of such person, (ii) any shares held by employees
or consultants which were repurchased and reissued by the Company and (iii) any
additional shares unanimously approved by the Board of Directors; (b) the
issuance of Securities in connection with the acquisition of a third party, by
merger, acquisition of more than fifty-one percent (51%) of the outstanding
shares or substantially all of the assets of such third party; (c) the issuance
of Common Stock of the Company upon conversion of the Preferred or upon
conversion or exercise of any security which was not subject to the right of
first refusal set forth in this Section 3 or for which the right of first
refusal was not exercised; or (d) the issuance of Securities pursuant to any
bank financing or leasing arrangements.

                                       11

<PAGE>

         3.6   Termination. The right of first refusal contained in this Section
               -----------
3 shall terminate as to an Investor upon the earlier of: (i) the time when such
Investor ceases to own 100,000 shares of Common Stock (determined in the manner
contemplated by Section 3.1(b) above); (ii) the closing of the Company's first
underwritten public offering registered under the Securities Act; or (iii) eight
(8) years after the date of this Agreement.

         3.7   Assignment. The rights specified in this Section 3 may not be
               ----------
assigned except: (i) to a purchaser of more than 200,000 shares of Common Stock
(as determined in the manner contemplated by Section 3.1(b) above); (ii) to an
Affiliate; (iii) to a successor entity to an Investor pursuant to a
reorganization or recapitalization of an Investor; (iv) to the partners of an
Investor (provided that such holder owns at least 200,000 shares following such
distribution) or (v) pursuant to an intervivos transfer to Investor's ancestors
or descendants or spouse or to a trustee for their benefit; provided, that the
Company receives notice within twenty (20) days following such assignment.

                                   SECTION 4

                              FINANCIAL INFORMATION
                              ---------------------

         4.1   Financial Information. The Company will mail the following
               ---------------------
reports to Investor:

         (a)  Within 90 days after the end of each fiscal year, consolidated
balance sheets of the Company and its subsidiaries, if any, as of the end of
such fiscal year, and consolidated statements of income and consolidated
statements of changes financial position of the Company and its subsidiaries, if
any, for such year, prepared in accordance with generally accepted accounting
principles, all in reasonable detail and audited by independent public
accountants selected by the Company; and

         (b)  As soon as practicable after the end of the first, second and
third quarterly accounting periods in each fiscal year, and in any event within
forty-fifty (45) days thereafter, consolidated balance sheets of the Company and
its subsidiaries, if any, as of the end of each such quarterly period, and
period and for the current fiscal year to day, prepared in accordance with
generally accepted accounting principles (without footnotes) together with a
comparison of such statements to the Company's operating plan then in effect to
be prepared under Section 4.2 and to the prior fiscal year, together with
operational and financial highlights.

         4.2   Operating Plan. Within a reasonable time after the commencement
               --------------
of each fiscal year, the Company will furnish Investor with the Company's budget
and operating plan (including projected balance sheets and profit and loss and
cash flow statements) for such fiscal year.

         4.3   Visitation Rights. Investor shall have the right to visit and
               -----------------
inspect any of the properties of the Company of any of its subsidiaries,
including its and their books of account, and to discuss its and their affairs,
finances and accounts with its and their officers, all at such

                                       12

<PAGE>

reasonable times and upon reasonable notice and as often as may be
reasonably requested; provided, however, that the Company shall not be required
at any time to disclose (i) any manufacturing or trade secret or secret process,
or any information or data classified by the United States government, or (ii)
other data the disclosure of which the Board of Directors of the Company
reasonably believes may adversely affect the business of the Company. All
confidential information obtained by Investor or its representative shall be
kept confidential, shall not be disclosed to any third party and shall not be
used by Investor for any purpose except for evaluation of Investor's equity
investment in the Company.

         4.4   Assignment. The rights granted pursuant to Section 4.1, 4.2 and
               ----------
4.3 may be assigned by Investor (i) to a third party who acquires at least
200,000 shares of Common Stock of the Company (as adjusted for any stock splits,
consolidations and the like) from Investor and who is not a competitor, or
affiliated in any manner with a competitor, of the Company or (ii) to a
successor entity to Investor pursuant to a reorganization of Investor; provided
that the Company receives notice within twenty (20) days of such assignment.

         4.5   Termination. The covenants set forth in Sections 4.1 through 4.3
               -----------
shall terminate on and be of no further force or effect (i) upon the
consummation of the Company's sale of its Common Stock in an underwritten public
offering pursuant to an effective registration statement filed under the
Securities Act; or (ii) as to any Investor when such Investor no longer holds at
least 100,000 shares of Common Stock of the Company (determined in the amount of
Section 3.1(b)).

                                       13

<PAGE>

                                   SECTION 5

                                  MISCELLANEOUS
                                  -------------

         5.1   Governing Law. This Agreement shall be governed in all respects
               -------------
by the laws of the State of California.

         5.2   Survival. The representations, warranties, covenants and
               --------
agreements made herein shall survive any investigation made by any Investor and
the closing of the transactions contemplated hereby.

         5.3   Successors and Assigns. Except as otherwise provided herein, the
               ----------------------
provisions hereof shall inure to the benefit of, and be binding upon, the
successors, assigns, heirs, executors and administrators of the parties hereto.

         5.4   Entire Agreement; Amendment.
               ---------------------------

         (a) This Agreement and the other documents delivered pursuant hereto
constitute the full and entire understanding and agreement between the parties
with regard to the subjects hereof and thereof. This Agreement may only be
amended or waived by a writing signed by all parties to this Agreement;
provided, however, that holders of a majority of the Preferred Stock and the
--------  -------
Conversion Shares held by the Investors acting together may waive or amend, on
behalf of all Investors, any provisions hereof benefitting Investors so long as
the effect thereof will be that all such Investors will be treated equally.

         (b) The Company may add additional parties to this Agreement and to
Exhibit A under this Agreement who execute counterparts of, or agree to be bound
by, this Agreement, in connection with future Preferred Agreements, and such
parties shall be treated as Investors in all respects; provided, that the
Company shall provide prompt notice of such change to the Investors.

         5.5   Notices, Etc. All notices and other communications required or
               ------------
permitted hereunder shall be in writing and shall be mailed by registered or
certified mail, postage prepaid, or otherwise delivered by hand or by messenger,
addressed (a) if to an Investor, at such Investor's address set forth on Exhibit
                                                                         -------
A, or at such other address as Investor shall have furnished to the Company in
-
writing, or (b) if to any other holder of any Restricted Securities, at such
address as such holder shall have furnished the Company in writing, or, until
any such holder so furnishes an address to the Company, then to and at the
address of the last holder of such Restricted Securities who has so furnished an
address to the Company, or (c) if to the Company, one copy should be sent to its
address set forth on the cover page of this Agreement and addressed to the
attention of the Corporate Secretary, or at such other address as the Company
shall have furnished to the Investors. If notice is provided by mail, notice
shall be deemed to be given upon proper deposit in the mail (and if outside the
United States, sent by airmail).

         5.6   Delay or Omissions. No delay or omission to exercise any right,
               ------------------
power or remedy accruing to any holder of any Restricted Securities upon any
breach or default of the

                                       14

<PAGE>

Company under this Agreement, shall impair any such right, power or remedy
of such holder nor shall it be construed to be a waiver of any such breach or
default, or an acquiescence therein, or of or in any similar breach or default
thereafter occurring; nor shall any waiver of any single breach or default be
deemed a waiver of any other breach or default theretofore or thereafter
occurring. Any waiver, permit, consent or approval of any kind or character on
the part of any holder of any breach or default under this Agreement, or any
waiver on the part of any holder of any provisions or conditions of this
agreement, must be in writing and shall be effective only to the extent
specifically set forth in such writing or as provided in Section 4.5 of this
Agreement. All remedies, either under this Agreement, or by law or otherwise
afforded to any holder, shall be cumulative and not alternative.

          5.7  Expenses. Except as provided in Section 2, the Company and each
               --------
Investor shall bear its own expenses and legal fees incurred on its behalf with
respect to this Agreement and the transactions contemplated hereby.

          5.8  Counterparts. This Agreement may be executed in any number of
               ------------
counterparts, all of which together shall constitute one instrument, and each of
which may be executed by less than all of the parties to this Agreement.

          5.9  Severability. In the event that any provision of this Agreement
               ------------
becomes or is declared by a court of competent jurisdiction to be illegal,
unenforceable or void, this Agreement shall continue in full force and effect
without said provision; provided that no such severability shall be effective if
it materially changes the economic benefit of this Agreement to any party.

     The foregoing agreement is hereby executed as of the date first above
written.

INVESTORS:                               COMPANY:

                                              INTERVIDEO, INC.

By:_______________________                       By:____________________________

                                       15

<PAGE>

                                    EXHIBIT A

                               PREFERRED INVESTORS
                               -------------------

Existing Holders:
----------------

<TABLE>
<CAPTION>
                                             Number of               Number of              Number of
                                             Shares of               Shares of              Shares of
Name and Address                             Series A  Preferred     Series B Preferred     Series C Preferred
----------------                             --------------------    -------------------    ------------------
<S>                                          <C>                     <C>                    <C>
Spot Master Investment Limited                    5,000,000
#3 Lane 60, Chiu-Kang ST.
Mucha, Wenshan Dist.
Taipei, Taiwan R.O.C.

Ming-Kai Tsai                                                              800,000
No. 16-3, Chu Chun 2/nd/ Road
Hsin-Chu City, Taiwan R.O.C.

K. N. Chang                                                                200,000
11F, No. 1 Lane
240 Kwon-Fu S. Road
Taipei, Taiwan R.O.C.

Additional Investors:
---------------------

Azam Corporation                                                                                    75,000
1333 Lawrence Expressway, #201
Santa Clara, CA  95051

Leadtek Research Inc.                                                                              100,000
18F, No. 166, Chien-Yi Road
Chung-Ho City
Taipei Hsien, Taiwan, ROC
ATTN:  K. S. Lu

Maxson Holdings Limited                                                                            100,000
2170 Century Park East, #704S
Los Angeles, CA  90067

Nichimen America, Inc.                                                                             100,000
222 N. LaSalle Street, Suite 999
Chicago, Illinois  60601
ATTN:  Ryuji Ishikawa

Richmond Holdings Global Limited                                                                   115,000
20C, 60 Tun Hua South Road
Sec.2, Taipei
Taiwan, R.O.C.
</TABLE>

                                       16

<PAGE>

<TABLE>
<S>                                                                                                  <C>
Teraokakosan, Ltd.                                                                                   12,500
1-3-8 Niitaka,
Yodogawa-ku
Osaka, Japan  532-0033
ATTN:  Tatsuhiko Terada

Chieh & Lily Chang Living Trust                                                                      50,000
375 Pepper Avenue
Hillsborough, CA  94010
ATTN:  Chieh Chang

The Sternheim Trust UDT 12/22/98                                                                    400,000
3489 S. Court Street
Palo Alto, CA  94306
ATTN: E. Sternheim

Chen Hwa Chang                                                                                       50,000
6F, #7, Lane 311, Alley 43, Sec. 2
Hoping E. Road
Taipei, Taiwan, R.O.C.
c/o Joe Liu
-----------
40743 Rainwater Ct.
Fremont, CA  94539

K. S. Chay                                                                                           50,000
203 Wing A.
Henderson Industrial Park
Singapore  15954

Martin Cooper                                                                                        50,000
100 Via De La Valle
Del Mar, CA  92014

Chia Kok Hua                                                                                         25,000
Blk 257 Bishan ST22 #07-323
Singapore,  347780

Ryuzo Kobayashi                                                                                      25,000
9-34 Rokurokuso-cho,
Ashiya-shi
Hyogo, Japan  659-0011

Yoichi Kuga                                                                                          12,500
8-1 Krekawa-cho,
Ahiya-shi
Hyogo, Japan  659-0051

Hideo Magata                                                                                         12,500
3-6-18 Matsuzaki-cho
Abeno-Ku
Osaka, Japan  545-0053

Kenji Niwa                                                                                           12,500
1-22 Manchidani-cho,
Nishinomiya-shi
Hyogo, Japan  659-0011
</TABLE>

                                       17

<PAGE>

<TABLE>
<S>                                                                                                  <C>
Tsutomu Ogishi                                                                                       25,000
1532 San Gabriel Way
San Jose, CA  95125

Kotaro Seto                                                                                          12,500
4-17 Yamate-cho,
Ashiya-shi
Hyogo, Japan  659-0096

Shinji Shiotani                                                                                      12,500
3-22-11 Midorigaoka,
Toyonaka-shi
Osaka, Japan  531-0071

James R. Tomihiro                                                                                    25,000
5984 Gleneagles Circle
San Jose, CA  95138

Doug Tsui                                                                                            50,000
972 Michelangelo Drive
Sunnyvale, CA  94087

Yao Wu                                                                                               35,000
310 Zhang Yang Road
Building #10, Room #501
Pudong, Shanghai
China
c/o Jeffrey Yao
---------------
1572 Mallard Way
Sunnyvale, CA  94087

Nichmen Electronic Components Corporation
Hokoku Bldg., 9F, 6-8,
Nakatsu 1-chome
Kita-Ku, Osaka 531-0071
Japan
</TABLE>

                                       18

<PAGE>

                                INTERVIDEO, INC.

                   AMENDMENT NO. 1 TO THE AMENDED AND RESTATED
                           INVESTORS RIGHTS AGREEMENT

     This Amendment No. 1 (the "Amendment") to the Amended and Restated
Investor's Rights Agreement dated as of July 2, 1999 (the "Agreement"), attached
as Exhibit I, is made as of this ______ day of March 2000 by and among
   ---------
InterVideo, Inc., a California corporation (the "Company"), the persons listed
on Exhibit A to the Agreement under the captions "Existing Holders" and
   ---------
"Additional Investors" (collectively, the "Existing Investors"), and the
additional individuals and/or entities listed on Exhibit II (the "New
                                                 ----------
Investors"). The New Investors and the Existing Investors are collectively
referred to as "Investors" for the purposes of the Agreement, as amended.

                                    RECITALS
                                    --------

     A.  The Company desires for those New Investors listed on Exhibit II under
                                                               ----------
the caption "New Investors" to purchase the Company's Series D Preferred Stock
pursuant to the Series D Preferred Stock Purchase Agreement of even date (as
defined herein).

     B.  As a condition thereof and to induce such investment, the Company and
the Existing Investors are willing to enter into this Agreement.

     In consideration of the foregoing premises and the promises and covenants
contained herein, the parties agree as follows:

     1.  Additional Parties to the Agreement
         -----------------------------------

         The New Investors hereby enter into and become parties to the
Agreement. Exhibit A to the Agreement is amended to include the New Investors on
           ---------
Exhibit II to this Amendment and to add the number of shares of Preferred Stock
----------
pursuant to this Amendment for all Investors.

     2.  Waiver
         ------

         With regard to the Series D Preferred Financing in connection with
which this Amendment No. 1 is being executed, the Existing Investors executing
this Amendment No. 1, on behalf of all Existing Investors, hereby waive notice
and compliance by the Company of the provisions under Section 3 of the
Agreement.

     3.  Effect of Amendment
         -------------------

         Section 3.5 of the Agreement is amended by deleting the word "or" which
appears before subsection (d) and adding the following at the end of subsection
(d):

                                       1

<PAGE>

         "or (e) the issuance of Securities pursuant to a joint venture,
research, development or product distribution agreement, licensing or a
strategic relationship approved by the Board of Directors."

         Except as amended as set forth above, the Agreement shall continue in
full force and effect.

     4.  Counterparts
         ------------

         This Amendment may be executed in any number of counterparts, all of
which together shall constitute one instrument, and each of which may be
executed by less than all of the Investors, each of which shall be enforceable
against Company and all Investors once this Amendment has been executed by the
Company, the Existing Investors holding a majority of the shares listed on
Exhibit A to the Agreement, and all of the New Investors listed on Exhibit II to
---------                                                          ----------
this Amendment.

         This Amendment is hereby executed as of the date first above written.

EXISTING INVESTOR:                  COMPANY:
_______________________________     INTERVIDEO, INC.

By:____________________________     By:______________________________

Title:_________________________     Title:___________________________

_______________________________
Print Investor Name

NEW INVESTOR:

By:____________________________

Title:_________________________

_______________________________
Print Investor Name

                                       2

<PAGE>

                                    EXHIBIT I
                                    ---------

                 AMENDED AND RESTATED INVESTORS RIGHTS AGREEMENT

                                       3

<PAGE>

                                   EXHIBIT II
                                   ----------

                                  NEW INVESTORS

--------------------------------------------------------------------------------
  Name                                                    Shares
                                                          Issued
================================================================================

  Cardamon Class Ltd.                                    250,000
--------------------------------------------------------------------------------
  Wei Min Chang                                           10,000
--------------------------------------------------------------------------------
  Joey Chen                                               20,000
--------------------------------------------------------------------------------
  Chen Yi-Chen                                            25,000
--------------------------------------------------------------------------------
  Cheng, Chi Chen                                         25,000
--------------------------------------------------------------------------------
  Brian Chong                                             20,000
--------------------------------------------------------------------------------
  Chuang Chien-Chih                                        5,000
--------------------------------------------------------------------------------
  Concord III Venture Capital                             50,000
--------------------------------------------------------------------------------
  Concord VI Venture Capital Co., Ltd.                    50,000
--------------------------------------------------------------------------------
  Concord II Venture Capital Co., Ltd.                    50,000
--------------------------------------------------------------------------------
  Concord IV Venture Co., Ltd.                            50,000
--------------------------------------------------------------------------------
  Concord VII Venture Capital Co., Ltd.                   50,000
--------------------------------------------------------------------------------
  Enrichment Venture Capital Corp.                       150,000
--------------------------------------------------------------------------------
  Fubon Venture Capital Co., Ltd.                         75,000
--------------------------------------------------------------------------------
  Goldman Asset Enterprises Ltd.                         150,000
--------------------------------------------------------------------------------
  Hanbase Technologies, Inc.                             250,000
--------------------------------------------------------------------------------
  Ho, Ai-Tang                                             25,000
--------------------------------------------------------------------------------
  Hsaio, Wei-Jung                                         10,000
--------------------------------------------------------------------------------
  Hsu Shan Ko                                             25,000
--------------------------------------------------------------------------------
  Huang Tsung Ming                                        25,000
--------------------------------------------------------------------------------
  Hung, Ruey-Lin                                          25,000
--------------------------------------------------------------------------------
  Chu Luk Wah Jackson                                     25,000
--------------------------------------------------------------------------------
  Kan Ming Shiang                                         37,500
--------------------------------------------------------------------------------

                                       4

<PAGE>

--------------------------------------------------------------------------------
  Name                                                         Shares
                                                               Issued
================================================================================
  Victor Kuan                                                   37,500
--------------------------------------------------------------------------------
  Kuo Tai-Yuan                                                   5,000
--------------------------------------------------------------------------------
  Ting-Ching Kuo                                                25,000
--------------------------------------------------------------------------------
  Lee, Chien-Ho                                                 25,000
--------------------------------------------------------------------------------
  Mei-Kuei Leng                                                 12,500
--------------------------------------------------------------------------------
  Alfonse Licata                                                10,000
--------------------------------------------------------------------------------
  Sharming Lin                                                   2,500
--------------------------------------------------------------------------------
  Daniel T Y Ling IRA DTD 4/21/97                               25,000
--------------------------------------------------------------------------------
  Liu, Bi-Lin                                                   25,000
--------------------------------------------------------------------------------
  Paul Liu                                                      25,000
--------------------------------------------------------------------------------
  Yu-Ching Liu                                                  10,000
--------------------------------------------------------------------------------
  Hardy K.C. Lok                                                12,500
--------------------------------------------------------------------------------
  Cheng-Chong Lu                                                10,000
--------------------------------------------------------------------------------
  Steven Lucco                                                  62,500
--------------------------------------------------------------------------------
  Minaji Hashimoto                                              25,000
--------------------------------------------------------------------------------
  Naluwan Corporation                                           20,000
--------------------------------------------------------------------------------
  NCTU Spring Venture Capital Co., Ltd.                         75,000
--------------------------------------------------------------------------------
  Chi-Lei Ni                                                    20,000
--------------------------------------------------------------------------------
  Nority Investment Limited                                    250,000
--------------------------------------------------------------------------------
  Pai, Chin-Chih                                                36,250
--------------------------------------------------------------------------------
  Chun Nan Pai                                                  25,000
--------------------------------------------------------------------------------
  Ping-Yaw Peng                                                 10,000
--------------------------------------------------------------------------------
  Phoenix International Management Holdings Limited            125,000
--------------------------------------------------------------------------------
  Prodeal Investment Co., Ltd.                                  25,000
--------------------------------------------------------------------------------
  Saiyed Atiq Raza and Noreen Tirmizi Raza, Trustees           250,000
  N & A Raza Revocable Trust UAD 3/22/97
--------------------------------------------------------------------------------
  Rajvir Singh                                                 250,000
--------------------------------------------------------------------------------

                                       5

<PAGE>

--------------------------------------------------------------------------------
  Name                                                     Shares
                                                           Issued
================================================================================
  SinoStar Venture Capital Co., Ltd.                         75,000
--------------------------------------------------------------------------------
  The Sternheim E. Trust, UDT 12/22/98                      162,500
--------------------------------------------------------------------------------
  Ta Ya Venture Capital Co., Ltd.                            75,000
--------------------------------------------------------------------------------
  Taiwan Special Opportunities Fund III                     750,000
--------------------------------------------------------------------------------
  TMO Investment Limited Partnership                         25,000
--------------------------------------------------------------------------------
  Frank Tseng                                                12,500
--------------------------------------------------------------------------------
  Tien-Chun Tseng                                            25,000
--------------------------------------------------------------------------------
  Wu Kwei Hwa                                                10,000
--------------------------------------------------------------------------------
  Eng Tai Wu                                                 25,000
--------------------------------------------------------------------------------
  Eric E. Wu                                                 25,000
--------------------------------------------------------------------------------
  Her-Ching Wu                                               12,500
--------------------------------------------------------------------------------
  Jeff Y. Wu                                                 25,000
--------------------------------------------------------------------------------
  TOTAL                                                   4,023,750
--------------------------------------------------------------------------------

                                       6<PAGE>

                                                                    EXHIBIT 10.8
[California Net Lease]

                                 LEASE AGREEMENT

     THIS LEASE AGREEMENT is made this _______________day of
_________________________, 2000, between ProLogis Limited Partnership-I, a
Delaware limited partnership, ("Landlord"), and the Tenant named below.

Tenant:                   InterVideo Inc., a California Corporation
                          ------------------------------------------------------

Tenant's representative,  Mr. Ken Boschwitz
address, and phone no.:   ------------------------------------------------------
                          47350 Fremont Boulevard
                          ------------------------------------------------------
                          Fremont, CA. 94538
                          ------------------------------------------------------
                          (510)651-0888
                          ------------------------------------------------------
                          ______________________________________________________
                          ______________________________________________________

Premises:                 That portion of the Building, containing approximately
                          19,395 rentable square feet, as determined by
                          ------
                          Landlord and commonly known as 47350 Fremont Boulevard
                                                         -----------------------
                          as shown on Exhibit A.

Project:                  Spinnaker One
                          -----------------------

Building:                 #14301
                          ------

Tenant's Proportionate
Share of Project:         20.2%
                          ----------------------------------

Tenant's Proportionate
Share of Building:        74.6%
                          ----------------------------------

Lease Term:               Beginning on the Commencement Date and ending on the
                          last day of the 36/th/ full calendar month thereafter.

Commencement Date:        November 1, 2000
                          ----------------------------------

Initial Monthly Base
Rent:                     Thirty Two Thousand Nine Hundred Seventy One   $32,971
                          -----------------------------------------------

Initial Estimated
Monthly Operating         1.  Common Area Charges:      $1,008
Expense Payments:                                       ------------
(estimates  only and
subject to adjustment     2.  Taxes:                    $2,502
to actual costs and                                     ------------
expenses according to
the provisions of this    3.  Insurance:                $58
Lease)                                                  -----

                          4.  Management Fee:           $213
                                                        -----

Initial Estimated
Monthly Operating
Expense Payments:                                                         $3,781
                                                                          ======

Initial Monthly Base
Rent and Operating
Expense Payments:                                                        $36,752

Security Deposit:         $38,693

Broker:                   N/A
                          ------------------------------------------------------

Addenda:                  Addendum(s)  I, II, III Exhibit(s) A, B, & C
                          --------------------------------------------

     1. Granting Clause. In consideration of the obligation of Tenant to pay
rent as herein provided and in consideration of the other terms, covenants, and
conditions hereof, Landlord leases to Tenant, and Tenant takes from Landlord,
the Premises, to have and to hold for the Lease Term, subject to the terms,
covenants and conditions of this Lease.

     2. Acceptance of Premises. Tenant shall accept the Premises in its
condition as of the Commencement Date, subject to all applicable laws,
ordinances, regulations, covenants and restrictions. Landlord has made no
representation or warranty as to the suitability of the Premises for the conduct
of Tenant's business, and Tenant waives any implied warranty that the Premises
are suitable for Tenant's intended purposes. Except as provided in Paragraph 10,
in no event shall Landlord have any obligation for any defects in the Premises
or any limitation on its use. The taking of possession of the Premises shall be
conclusive evidence that Tenant accepts the Premises and that the Premises were
in good condition at the time possession was taken except for items that are
Landlord's responsibility under Paragraph 10 and any punchlist items agreed to
in writing by Landlord and Tenant.

     3. Use. The Premises shall be used only for the purpose of receiving,
storing, shipping and selling (but limited to wholesale or mail order or
web-based retail sales) products, materials and merchandise made and/or
distributed by Tenant and for such other lawful purposes as may be incidental
thereto; provided, however, with Landlord's prior written consent, Tenant may
also use the Premises for light manufacturing. Tenant shall not conduct or give
notice of any auction, liquidation, or going out of business sale on the
Premises. Tenant will use the Premises in a careful, safe and proper manner and
will not commit waste, overload the floor or structure of the Premises or
subject the Premises to use that would damage the Premises. Tenant shall not
permit any objectionable or unpleasant odors, smoke, dust, gas, noise, or
vibrations to emanate from the Premises, or take any other action that would
constitute a nuisance or would disturb, unreasonably interfere with, or endanger
Landlord or any tenants of the Project. Outside storage,

<PAGE>

including without limitation, storage of trucks and other vehicles, is
prohibited without Landlord's prior written consent. Tenant, at its sole
expense, shall use and occupy the Premises in compliance with all laws,
including, without limitation, the Americans With Disabilities Act, orders,
judgments, ordinances, regulations, codes, directives, permits, licenses,
covenants and restrictions now or hereafter applicable to the Premises
(collectively, "Legal Requirements"). The Premises shall not be used as a place
of public accommodation under the Americans With Disabilities Act or similar
state statutes or local ordinances or any regulations promulgated thereunder,
all as may be amended from time to time. Tenant shall, at its expense, make any
alterations or modifications, within or without the Premises, that are required
by Legal Requirements related to Tenant's use or occupation of the Premises.
Tenant will not use or permit the Premises to be used for any purpose or in any
manner that would void Tenant's or Landlord's insurance, increase the insurance
risk, or cause the disallowance of any sprinkler credits. If any increase in the
cost of any insurance on the Premises or the Project is caused by Tenant's use
or occupation of the Premises, or because Tenant vacates the Premises, then
Tenant shall pay the amount of such increase to Landlord. Any occupation of the
Premises by Tenant prior to the Commencement Date shall be subject to all
obligations of Tenant under this Lease.

     4. Base Rent. Tenant shall pay Base Rent in the amount set forth above. The
first month's Base Rent, the Security Deposit, and the first monthly installment
of estimated Operating Expenses (as hereafter defined) shall be due and payable
on the date hereof, and Tenant promises to pay to Landlord in advance, without
demand, deduction or set-off, monthly installments of Base Rent on or before the
first day of each calendar month succeeding the Commencement Date. Payments of
Base Rent for any fractional calendar month shall be prorated. All payments
required to be made by Tenant to Landlord hereunder shall be payable at such
address as Landlord may specify from time to time by written notice delivered in
accordance herewith. The obligation of Tenant to pay Base Rent and other sums to
Landlord and the obligations of Landlord under this Lease are independent
obligations. Tenant shall have no right at any time to abate, reduce, or set-off
any rent due hereunder except as may be expressly provided in this Lease. Tenant
waives and releases all statutory liens and offset rights as to rent. If Tenant
is delinquent in any monthly installment of Base Rent or of estimated Operating
Expenses for more than 5 days, Tenant shall pay to Landlord on demand a late
charge equal to 5 percent of such delinquent sum. The provision for such late
charge shall be in addition to all of Landlord's other rights and remedies
hereunder or at law and shall not be construed as a penalty.

     5. Security Deposit. The Security Deposit shall be held by Landlord as
security for the performance of Tenant's obligations under this Lease. The
Security Deposit is not an advance rental deposit or a measure of Landlord's
damages in case of Tenant's default. Upon each occurrence of an Event of Default
(hereinafter defined), Landlord may use all or part of the Security Deposit to
pay delinquent payments due under this Lease, and the cost of any damage,
injury, expense or liability caused by such Event of Default, without prejudice
to any other remedy provided herein or provided by law. Tenant shall pay
Landlord on demand the amount that will restore the Security Deposit to its
original amount. Landlord's obligation respecting the Security Deposit is that
of a debtor, not a trustee; no interest shall accrue thereon. The Security
Deposit shall be the property of Landlord, but shall be paid to Tenant when
Tenant's obligations under this Lease have been completely fulfilled. Landlord
shall be released from any obligation with respect to the Security Deposit upon
transfer of this Lease and the Premises to a person or entity assuming
Landlord's obligations under this Paragraph 5.

     6. Operating Expense Payments. During each month of the Lease Term, on the
same date that Base Rent is due, Tenant shall pay Landlord an amount equal to
1/12 of the annual cost, as estimated by Landlord from time to time, of Tenant's
Proportionate Share (hereinafter defined) of Operating Expenses for the Project.
Payments thereof for any fractional calendar month shall be prorated. The term
"Operating Expenses" means all costs and expenses incurred by Landlord with
respect to the ownership, maintenance, and operation of the Project including,
but not limited to costs of: Taxes (hereinafter defined) and fees payable to tax
consultants and attorneys for consultation and contesting taxes; insurance;
utilities; maintenance, repair and replacement of all portions of the Project,
including without limitation, paving and parking areas, roads, roofs, alleys,
and driveways, mowing, landscaping, exterior painting, utility lines, heating,
ventilation and air conditioning systems, lighting, electrical systems and other
mechanical and building systems; amounts paid to contractors and subcontractors
for work or services performed in connection with any of the foregoing; charges
or assessments of any association to which the Project is subject; property
management fees payable to a property manager, including any affiliate of
Landlord, or if there is no property manager, an administration fee of 15
percent of Operating Expenses payable to Landlord; security services, if any;
trash collection, sweeping and removal; and additions or alterations made by
Landlord to the Project or the Building in order to comply with Legal
Requirements (other than those expressly required herein to be made by Tenant)
or that are appropriate to the continued operation of the Project or the
Building as a bulk warehouse facility in the market area, provided that the cost
of additions or alterations that are required to be capitalized for federal
income tax purposes shall be amortized on a straight line basis over a period
equal to the lesser of the useful life thereof for federal income tax purposes
or 10 years. Operating Expenses do not include costs, or expenses, depreciation
or amortization for capital repairs and capital replacements required to be made
by Landlord under Paragraph 10 of this Lease, debt service under mortgages or
ground rent under ground leases, costs of restoration to the extent of net
insurance proceeds received by Landlord with respect thereto, leasing
commissions, or the costs of renovating space for tenants.

        If Tenant's total payments of Operating Expenses for any year are less
than Tenant's Proportionate Share of actual Operating Expenses for such year,
then Tenant shall pay the difference to Landlord within 30 days after demand,
and if more, then Landlord shall retain such excess and credit it against
Tenant's next payments. For purposes of calculating Tenant's Proportionate Share
of Operating Expenses, a year shall mean a calendar year except the first year,
which shall begin on the Commencement Date, and the last year, which shall end
on the expiration of this Lease. With respect to Operating Expenses which
Landlord allocates to the entire Project, Tenant's "Proportionate Share" shall
be the percentage set forth on the first page of this Lease as Tenant's
Proportionate Share of the Project as reasonably adjusted by Landlord in the
future for changes in the physical size of the Premises or the Project; and,
with respect to Operating Expenses which Landlord allocates only to the
Building, Tenant's "Proportionate Share" shall be the percentage set forth on
the first page of this Lease as Tenant's Proportionate Share of the Building as
reasonably adjusted by Landlord in the

                                      -2-

<PAGE>

future for changes in the physical size of the Premises or the Building.
Landlord may equitably increase Tenant's Proportionate Share for any item of
expense or cost reimbursable by Tenant that relates to a repair, replacement, or
service that benefits only the Premises or only a portion of the Project or
Building that includes the Premises or that varies with occupancy or use. The
estimated Operating Expenses for the Premises set forth on the first page of
this Lease are only estimates, and Landlord makes no guaranty or warranty that
such estimates will be accurate.

     7.  Utilities. Tenant shall pay for all water, gas, electricity, heat,
light, power, telephone, sewer, sprinkler services, refuse and trash collection,
and other utilities and services used on the Premises, all maintenance charges
for utilities, and any storm sewer charges or other similar charges for
utilities imposed by any governmental entity or utility provider, together with
any taxes, penalties, surcharges or the like pertaining to Tenant's use of the
Premises. Landlord may cause at Tenant's expense any utilities to be separately
metered or charged directly to Tenant by the provider. Tenant shall pay its
share of all charges for jointly metered utilities based upon consumption, as
reasonably determined by Landlord. No interruption or failure of utilities shall
result in the termination of this Lease or the abatement of rent. Tenant agrees
to limit use of water and sewer for normal restroom use.

     8.  Taxes. Landlord shall pay all taxes, assessments and governmental
charges (collectively referred to as "Taxes") that accrue against the Project
during the Lease Term, which shall be included as part of the Operating Expenses
charged to Tenant. Landlord may contest by appropriate legal proceedings the
amount, validity, or application of any Taxes or liens thereof. All capital
levies or other taxes assessed or imposed on Landlord upon the rents payable to
Landlord under this Lease and any franchise tax, any excise, transaction, sales
or privilege tax, assessment, levy or charge measured by or based, in whole or
in part, upon such rents from the Premises and/or the Project or any portion
thereof shall be paid by Tenant to Landlord monthly in estimated installments or
upon demand, at the option of Landlord, as additional rent; provided, however,
in no event shall Tenant be liable for any net income taxes imposed on Landlord
unless such net income taxes are in substitution for any Taxes payable
hereunder. If any such tax or excise is levied or assessed directly against
Tenant, then Tenant shall be responsible for and shall pay the same at such
times and in such manner as the taxing authority shall require. Tenant shall be
liable for all taxes levied or assessed against any personal property or
fixtures placed in the Premises, whether levied or assessed against Landlord or
Tenant.

     9.  Insurance. Landlord shall maintain all risk property insurance covering
the full replacement cost of the Building. Landlord may, but is not obligated
to, maintain such other insurance and additional coverages as it may deem
necessary, including, but not limited to, commercial liability insurance and
rent loss insurance. All such insurance shall be included as part of the
Operating Expenses charged to Tenant. The Project or Building may be included in
a blanket policy (in which case the cost of such insurance allocable to the
Project or Building will be determined by Landlord based upon the insurer's cost
calculations). Tenant shall also reimburse Landlord for any increased premiums
or additional insurance which Landlord reasonably deems necessary as a result of
Tenant's use of the Premises.

         Tenant, at its expense, shall maintain during the Lease Term: all risk
property insurance covering the full replacement cost of all property and
improvements installed or placed in the Premises by Tenant at Tenant's expense;
worker's compensation insurance with no less than the minimum limits required by
law; employer's liability insurance with such limits as required by law; and
commercial liability insurance, with a minimum limit of $1,000,000 per
occurrence and a minimum umbrella limit of $1,000,000, for a total minimum
combined general liability and umbrella limit of $2,000,000 (together with such
additional umbrella coverage as Landlord may reasonably require) for property
damage, personal injuries, or deaths of persons occurring in or about the
Premises. Landlord may from time to time require reasonable increases in any
such limits. The commercial liability policies shall name Landlord as an
additional insured, insure on an occurrence and not a claims-made basis, be
issued by insurance companies which are reasonably acceptable to Landlord, not
be cancelable unless 30 days' prior written notice shall have been given to
Landlord, contain a hostile fire endorsement and a contractual liability
endorsement and provide primary coverage to Landlord (any policy issued to
Landlord providing duplicate or similar coverage shall be deemed excess over
Tenant's policies). Such policies or certificates thereof shall be delivered to
Landlord by Tenant upon commencement of the Lease Term and upon each renewal of
said insurance.

         The all risk property insurance obtained by Landlord and Tenant shall
include a waiver of subrogation by the insurers and all rights based upon an
assignment from its insured, against Landlord or Tenant, their officers,
directors, employees, managers, agents, invitees and contractors, in connection
with any loss or damage thereby insured against. Neither party nor its officers,
directors, employees, managers, agents, invitees or contractors shall be liable
to the other for loss or damage caused by any risk coverable by all risk
property insurance, and each party waives any claims against the other party,
and its officers, directors, employees, managers, agents, invitees and
contractors for such loss or damage. The failure of a party to insure its
property shall not void this waiver. Landlord and its agents, employees and
contractors shall not be liable for, and Tenant hereby waives all claims against
such parties for, business interruption and losses occasioned thereby sustained
by Tenant or any person claiming through Tenant resulting from any accident or
occurrence in or upon the Premises or the Project from any cause whatsoever,
including without limitation, damage caused in whole or in part, directly or
indirectly, by the negligence of Landlord or its agents, employees or
contractors.

     10. Landlord's Repairs. Landlord shall maintain, at its expense, the
structural soundness of the roof, foundation, and exterior walls of the Building
in good repair, reasonable wear and tear and uninsured losses and damages caused
by Tenant, its agents and contractors excluded. The term "walls" as used in this
Paragraph 10 shall not include windows, glass or plate glass, doors or overhead
doors, special store fronts, dock bumpers, dock plates or levelers, or office
entries. Tenant shall promptly give Landlord written notice of any repair
required by Landlord pursuant to this Paragraph 10, after which Landlord shall
have a reasonable opportunity to repair.

     11. Tenant's Repairs. Landlord, at Tenant's expense as provided in
Paragraph 6, shall maintain in good repair and condition the parking areas and
other common areas of the Building, including, but not limited to driveways,
alleys, landscape and grounds surrounding the Premises. Subject to Landlord's
obligation in Paragraph 10 and subject to

                                      -3-

<PAGE>

Paragraphs 9 and 15, Tenant, at its expense, shall repair, replace and maintain
in good condition all portions of the Premises and all areas, improvements and
systems exclusively serving the Premises including, without limitation, dock and
loading areas, truck doors, plumbing, water, and sewer lines up to points of
common connection, fire sprinklers and fire protection systems, entries, doors,
ceilings and roof membrane, windows, interior walls, and the interior side of
demising walls, and heating, ventilation and air conditioning systems. Such
repair and replacements include capital expenditures and repairs whose benefits
may extend beyond the Term. Heating, ventilation and air conditioning systems
and other mechanical and building systems serving the Premises shall be
maintained at Tenant's expense pursuant to maintenance service contracts entered
into by Tenant or, at Landlord's election, by Landlord. The scope of services
and contractors under such maintenance contracts shall be reasonably approved by
Landlord. At Landlord's request, Tenant shall enter into a joint maintenance
agreement with any railroad that services the Premises. If Tenant fails to
perform any repair or replacement for which it is responsible, Landlord may
perform such work and be reimbursed by Tenant within 10 days after demand
therefor. Subject to Paragraphs 9 and 15, Tenant shall bear the full cost of any
repair or replacement to any part of the Building or Project that results from
damage caused by Tenant, its agents, contractors, or invitees and any repair
that benefits only the Premises.

     12. Tenant-Made Alterations and Trade Fixtures. Any alterations, additions,
or improvements made by or on behalf of Tenant to the Premises ("Tenant-Made
Alterations") shall be subject to Landlord's prior written consent. Tenant shall
cause, at its expense, all Tenant-Made Alterations to comply with insurance
requirements and with Legal Requirements and shall construct at its expense any
alteration or modification required by Legal Requirements as a result of any
Tenant-Made Alterations. All Tenant-Made Alterations shall be constructed in a
good and workmanlike manner by contractors reasonably acceptable to Landlord and
only good grades of materials shall be used. All plans and specifications for
any Tenant-Made Alterations shall be submitted to Landlord for its approval.
Landlord may monitor construction of the Tenant-Made Alterations. Tenant shall
reimburse Landlord for its costs in reviewing plans and specifications and in
monitoring construction. Landlord's right to review plans and specifications and
to monitor construction shall be solely for its own benefit, and Landlord shall
have no duty to see that such plans and specifications or construction comply
with applicable laws, codes, rules and regulations. Tenant shall provide
Landlord with the identities and mailing addresses of all persons performing
work or supplying materials, prior to beginning such construction, and Landlord
may post on and about the Premises notices of non-responsibility pursuant to
applicable law. Tenant shall furnish security or make other arrangements
satisfactory to Landlord to assure payment for the completion of all work free
and clear of liens and shall provide certificates of insurance for worker's
compensation and other coverage in amounts and from an insurance company
satisfactory to Landlord protecting Landlord against liability for personal
injury or property damage during construction. Upon completion of any
Tenant-Made Alterations, Tenant shall deliver to Landlord sworn statements
setting forth the names of all contractors and subcontractors who did work on
the Tenant-Made Alterations and final lien waivers from all such contractors and
subcontractors. Upon surrender of the Premises, all Tenant-Made Alterations and
any leasehold improvements constructed by Landlord or Tenant shall remain on the
Premises as Landlord's property, except to the extent Landlord requires removal
at Tenant's expense of any such items or Landlord and Tenant have otherwise
agreed in writing in connection with Landlord's consent to any Tenant-Made
Alterations. Tenant shall repair any damage caused by such removal.

         Tenant, at its own cost and expense and without Landlord's prior
approval, may erect such shelves, bins, machinery and trade fixtures
(collectively "Trade Fixtures") in the ordinary course of its business provided
that such items do not alter the basic character of the Premises, do not
overload or damage the Premises, and may be removed without injury to the
Premises, and the construction, erection, and installation thereof complies with
all Legal Requirements and with Landlord's requirements set forth above. Tenant
shall remove its Trade Fixtures and shall repair any damage caused by such
removal.

     13. Signs. Tenant shall not make any changes to the exterior of the
Premises, install any exterior lights, decorations, balloons, flags, pennants,
banners, or painting, or erect or install any signs, windows or door lettering,
placards, decorations, or advertising media of any type which can be viewed from
the exterior of the Premises, without Landlord's prior written consent. Upon
surrender or vacation of the Premises, Tenant shall have removed all signs and
repair, paint, and/or replace the building facia surface to which its signs are
attached. Tenant shall obtain all applicable governmental permits and approvals
for sign and exterior treatments. All signs, decorations, advertising media,
blinds, draperies and other window treatment or bars or other security
installations visible from outside the Premises shall be subject to Landlord's
approval and conform in all respects to Landlord's requirements.

     14. Parking. Tenant shall be entitled to park in common with other tenants
of the Project in those areas designated for nonreserved parking. Landlord may
allocate parking spaces among Tenant and other tenants in the Project if
Landlord determines that such parking facilities are becoming crowded. Landlord
shall not be responsible for enforcing Tenant's parking rights against any third
parties.

     15. Restoration. If at any time during the Lease Term the Premises are
damaged by a fire or other casualty, Landlord shall notify Tenant within 60 days
after such damage as to the amount of time Landlord reasonably estimates it will
take to restore the Premises. If the restoration time is estimated to exceed 6
months, either Landlord or Tenant may elect to terminate this Lease upon notice
to the other party given no later than 30 days after Landlord's notice. If
neither party elects to terminate this Lease or if Landlord estimates that
restoration will take 6 months or less, then, subject to receipt of sufficient
insurance proceeds, Landlord shall promptly restore the Premises excluding the
improvements installed by Tenant or by Landlord and paid by Tenant, subject to
delays arising from the collection of insurance proceeds or from Force Majeure
events. Tenant at Tenant's expense shall promptly perform, subject to delays
arising from the collection of insurance proceeds, or from Force Majeure events,
all repairs or restoration not required to be done by Landlord and shall
promptly re-enter the Premises and commence doing business in accordance with
this Lease. Notwithstanding the foregoing, either party may terminate this Lease
if the Premises are damaged during the last year of the Lease Term and Landlord
reasonably estimates that it will take more than one month to repair such
damage. Tenant shall pay to Landlord with respect to any damage to the Premises
the amount of the commercially reasonable

                                      -4-

<PAGE>

deductible under Landlord's insurance policy within 10 days after presentment of
Landlord's invoice. If the damage involves the premises of other tenants, Tenant
shall pay the portion of the deductible that the cost of the restoration of the
Premises bears to the total cost of restoration, as determined by Landlord. Base
Rent and Operating Expenses shall be abated for the period of repair and
restoration in the proportion which the area of the Premises, if any, which is
not usable by Tenant bears to the total area of the Premises. Such abatement
shall be the sole remedy of Tenant, and except as provided herein, Tenant waives
any right to terminate the Lease by reason of damage or casualty loss.

     16. Condemnation. If any part of the Premises or the Project should be
taken for any public or quasi-public use under governmental law, ordinance, or
regulation, or by right of eminent domain, or by private purchase in lieu
thereof (a "Taking" or "Taken"), and the Taking would prevent or materially
interfere with Tenant's use of the Premises or in Landlord's judgment would
materially interfere with or impair its ownership or operation of the Project,
then upon written notice by Landlord this Lease shall terminate and Base Rent
shall be apportioned as of said date. If part of the Premises shall be Taken,
and this Lease is not terminated as provided above, the Base Rent payable
hereunder during the unexpired Lease Term shall be reduced to such extent as may
be fair and reasonable under the circumstances. In the event of any such Taking,
Landlord shall be entitled to receive the entire price or award from any such
Taking without any payment to Tenant, and Tenant hereby assigns to Landlord
Tenant's interest, if any, in such award. Tenant shall have the right, to the
extent that same shall not diminish Landlord's award, to make a separate claim
against the condemning authority (but not Landlord) for such compensation as may
be separately awarded or recoverable by Tenant for moving expenses and damage to
Tenant's Trade Fixtures, if a separate award for such items is made to Tenant.

     17. Assignment and Subletting. Without Landlord's prior written consent,
which Landlord shall not unreasonably withhold, Tenant shall not assign this
Lease or sublease the Premises or any part thereof or mortgage, pledge, or
hypothecate its leasehold interest or grant any concession or license within the
Premises and any attempt to do any of the foregoing shall be void and of no
effect. For purposes of this paragraph, a transfer of the ownership interests
controlling Tenant shall be deemed an assignment of this Lease unless such
ownership interests are publicly traded. Notwithstanding the above, Tenant may
assign or sublet the Premises, or any part thereof, to any entity controlling
Tenant, controlled by Tenant or under common control with Tenant (a "Tenant
Affiliate"), without the prior written consent of Landlord. Tenant shall
reimburse Landlord for all of Landlord's reasonable out-of-pocket expenses in
connection with any assignment or sublease. Upon Landlord's receipt of Tenant's
written notice of a desire to assign or sublet the Premises, or any part thereof
(other than to a Tenant Affiliate), Landlord may, by giving written notice to
Tenant within 30 days after receipt of Tenant's notice, terminate this Lease
with respect to the space described in Tenant's notice, as of the date specified
in Tenant's notice for the commencement of the proposed assignment or sublease.
If Landlord so terminates the Lease, Landlord may enter into a lease directly
with the proposed sublessee or assignee. Tenant may withdraw its notice to
sublease or assign by notifying Landlord within 10 days after Landlord has given
Tenant notice of such termination, in which case the Lease shall not terminate
but shall continue.

         It shall be reasonable for the Landlord to withhold its consent to any
assignment or sublease in any of the following instances: (i) an Event of
Default has occurred and is continuing that would not be cured upon the proposed
sublease or assignment; (ii) the assignee or sublessee does not have a net worth
calculated according to generally accepted accounting principles at least equal
to the greater of the net worth of Tenant immediately prior to such assignment
or sublease or the net worth of the Tenant at the time it executed the Lease;
(iii) the intended use of the Premises by the assignee or sublessee is not
reasonably satisfactory to Landlord; (iv) the intended use of the Premises by
the assignee or sublessee would materially increase the pedestrian or vehicular
traffic to the Premises or the Project; (v) occupancy of the Premises by the
assignee or sublessee would, in Landlord's opinion, violate an agreement binding
upon Landlord or the Project with regard to the identity of tenants, usage in
the Project, or similar matters; (vi) the identity or business reputation of the
assignee or sublessee will, in the good faith judgment of Landlord, tend to
damage the goodwill or reputation of the Project; (vii) the assignment or sublet
is to another tenant in the Project and is at rates which are below those
charged by Landlord for comparable space in the Project; (viii) in the case of a
sublease, the subtenant has not acknowledged that the Lease controls over any
inconsistent provision in the sublease; (ix) the proposed assignee or sublessee
is a governmental agency; or Tenant and Landlord acknowledge that each of the
foregoing criteria are reasonable as of the date of execution of this Lease. The
foregoing criteria shall not exclude any other reasonable basis for Landlord to
refuse its consent to such assignment or sublease. Any approved assignment or
sublease shall be expressly subject to the terms and conditions of this Lease.
Tenant shall provide to Landlord all information concerning the assignee or
sublessee as Landlord may request.

         Notwithstanding any assignment or subletting, Tenant and any guarantor
or surety of Tenant's obligations under this Lease shall at all times remain
fully responsible and liable for the payment of the rent and for compliance with
all of Tenant's other obligations under this Lease (regardless of whether
Landlord's approval has been obtained for any such assignments or sublettings).
In the event that the rent due and payable by a sublessee or assignee (or a
combination of the rental payable under such sublease or assignment plus any
bonus or other consideration therefor or incident thereto) exceeds the rental
payable under this Lease, then Tenant shall be bound and obligated to pay
Landlord as additional rent hereunder 50% of all such excess rental and other
excess consideration within 10 days following receipt thereof by Tenant.

         If this Lease be assigned or if the Premises be subleased (whether in
whole or in part) or in the event of the mortgage, pledge, or hypothecation of
Tenant's leasehold interest or grant of any concession or license within the
Premises or if the Premises be occupied in whole or in part by anyone other than
Tenant, then upon a default by Tenant hereunder Landlord may collect rent from
the assignee, sublessee, mortgagee, pledgee, party to whom the leasehold
interest was hypothecated, concessionee or licensee or other occupant and,
except to the extent set forth in the preceding paragraph, apply the amount
collected to the next rent payable hereunder; and all such rentals collected by
Tenant shall be held in trust for Landlord and immediately forwarded to
Landlord. No such transaction or collection of rent or

                                      -5-

<PAGE>

application thereof by Landlord, however, shall be deemed a waiver of these
provisions or a release of Tenant from the further performance by Tenant of its
covenants, duties, or obligations hereunder.

     18. Indemnification. Except for the negligence of Landlord, its agents,
employees or contractors, and to the extent permitted by law, Tenant agrees to
indemnify, defend and hold harmless Landlord, and Landlord's agents, employees
and contractors, from and against any and all losses, liabilities, damages,
costs and expenses (including attorneys' fees) resulting from claims by third
parties for injuries to any person and damage to or theft or misappropriation or
loss of property occurring in or about the Project and arising from the use and
occupancy of the Premises or from any activity, work, or thing done, permitted
or suffered by Tenant in or about the Premises or due to any other act or
omission of Tenant, its subtenants, assignees, invitees, employees, contractors
and agents. The furnishing of insurance required hereunder shall not be deemed
to limit Tenant's obligations under this Paragraph 18.

     19. Inspection and Access. Landlord and its agents, representatives, and
contractors may enter the Premises at any reasonable time to inspect the
Premises and to make such repairs as may be required or permitted pursuant to
this Lease and for any other business purpose. Landlord and Landlord's
representatives may enter the Premises during business hours for the purpose of
showing the Premises to prospective purchasers and, during the last year of the
Lease Term, to prospective tenants. Landlord may erect a suitable sign on the
Premises stating the Premises are available to let or that the Project is
available for sale. Landlord may grant easements, make public dedications,
designate common areas and create restrictions on or about the Premises,
provided that no such easement, dedication, designation or restriction
materially interferes with Tenant's use or occupancy of the Premises. At
Landlord's request, Tenant shall execute such instruments as may be necessary
for such easements, dedications or restrictions.

     20. Quiet Enjoyment. If Tenant shall perform all of the covenants and
agreements herein required to be performed by Tenant, Tenant shall, subject to
the terms of this Lease, at all times during the Lease Term, have peaceful and
quiet enjoyment of the Premises against any person claiming by, through or under
Landlord.

     21. Surrender. Upon termination of the Lease Term or earlier termination of
Tenant's right of possession, Tenant shall surrender the Premises to Landlord in
the same condition as received, broom clean, ordinary wear and tear and casualty
loss and condemnation covered by Paragraphs 15 and 16 excepted. Any Trade
Fixtures, Tenant-Made Alterations and property not so removed by Tenant as
permitted or required herein shall be deemed abandoned and may be stored,
removed, and disposed of by Landlord at Tenant's expense, and Tenant waives all
claims against Landlord for any damages resulting from Landlord's retention and
disposition of such property. All obligations of Tenant hereunder not fully
performed as of the termination of the Lease Term shall survive the termination
of the Lease Term, including without limitation, indemnity obligations, payment
obligations with respect to Operating Expenses and obligations concerning the
condition and repair of the Premises.

     22. Holding Over. If Tenant retains possession of the Premises after the
termination of the Lease Term, unless otherwise agreed in writing, such
possession shall be subject to immediate termination by Landlord at any time,
and all of the other terms and provisions of this Lease (excluding any expansion
or renewal option or other similar right or option) shall be applicable during
such holdover period, except that Tenant shall pay Landlord from time to time,
upon demand, as Base Rent for the holdover period, an amount equal to 150% the
Base Rent in effect on the termination date, computed on a monthly basis for
each month or part thereof during such holding over. All other payments shall
continue under the terms of this Lease. In addition, Tenant shall be liable for
all damages incurred by Landlord as a result of such holding over. No holding
over by Tenant, whether with or without consent of Landlord, shall operate to
extend this Lease except as otherwise expressly provided, and this Paragraph 22
shall not be construed as consent for Tenant to retain possession of the
Premises.

     23.  Events of Default. Each of the following events shall be an event of
default ("Event of Default") by Tenant under this Lease:

          (i)    Tenant shall fail to pay any installment of Base Rent or any
     other payment required herein when due, and such failure shall continue for
     a period of 5 days from the date such payment was due.

          (ii)   Tenant or any guarantor or surety of Tenant's obligations
     hereunder shall (A) make a general assignment for the benefit of creditors;
     (B) commence any case, proceeding or other action seeking to have an order
     for relief entered on its behalf as a debtor or to adjudicate it a bankrupt
     or insolvent, or seeking reorganization, arrangement, adjustment,
     liquidation, dissolution or composition of it or its debts or seeking
     appointment of a receiver, trustee, custodian or other similar official for
     it or for all or of any substantial part of its property (collectively a
     "proceeding for relief"); (C) become the subject of any proceeding for
     relief which is not dismissed within 60 days of its filing or entry; or (D)
     die or suffer a legal disability (if Tenant, guarantor, or surety is an
     individual) or be dissolved or otherwise fail to maintain its legal
     existence (if Tenant, guarantor or surety is a corporation, partnership or
     other entity).

          (iii)  Any insurance required to be maintained by Tenant pursuant to
     this Lease shall be cancelled or terminated or shall expire or shall be
     reduced or materially changed, except, in each case, as permitted in this
     Lease.

          (iv)   Tenant shall not occupy or shall vacate the Premises or shall
     fail to continuously operate its business at the Premises for the permitted
     use set forth herein, whether or not Tenant is in monetary or other default
     under this Lease.

          (v)    Tenant shall attempt or there shall occur any assignment,
     subleasing or other transfer of Tenant's interest in or with respect to
     this Lease except as otherwise permitted in this Lease.

                                      -6-

<PAGE>

          (vi)  Tenant shall fail to discharge any lien placed upon the Premises
     in violation of this Lease within 30 days after any such lien or
     encumbrance is filed against the Premises.

          (vii) Tenant shall fail to comply with any provision of this Lease
     other than those specifically referred to in this Paragraph 23, and except
     as otherwise expressly provided herein, such default shall continue for
     more than 30 days after Landlord shall have given Tenant written notice of
     such default.

     24.  Landlord's Remedies. Upon each occurrence of an Event of Default and
so long as such Event of Default shall be continuing, Landlord may at any time
thereafter at its election: terminate this Lease or Tenant's right of possession
(but Tenant shall remain liable as hereinafter provided), and/or pursue any
other remedies at law or in equity. Upon the termination of this Lease or
termination of Tenant's right of possession, it shall be lawful for Landlord,
without formal demand or notice of any kind, to re-enter the Premises by summary
dispossession proceedings or any other action or proceeding authorized by law
and to remove Tenant and all persons and property therefrom. If Landlord
re-enters the Premises, Landlord shall have the right to keep in place and use,
or remove and store, all of the furniture, fixtures and equipment at the
Premises.

          Except as otherwise provided in the next paragraph, if Tenant breaches
this Lease and abandons the Premises prior to the end of the term hereof, or if
Tenant's right to possession is terminated by Landlord because of an Event of
Default by Tenant under this Lease, this Lease shall terminate. Upon such
termination, Landlord may recover from Tenant the following, as provided in
Section 1951.2 of the Civil Code of California: (i) the worth at the time of
award of the unpaid Base Rent and other charges under this Lease that had been
earned at the time of termination; (ii) the worth at the time of award of the
amount by which the reasonable value of the unpaid Base Rent and other charges
under this Lease which would have been earned after termination until the time
of award exceeds the amount of such rental loss that Tenant proves could have
been reasonably avoided; (iii) the worth at the time of award by which the
reasonable value of the unpaid Base Rent and other charges under this Lease for
the balance of the term of this Lease after the time of award exceeds the amount
of such rental loss that Tenant proves could have been reasonably avoided; and
(iv) any other amount necessary to compensate Landlord for all the detriment
proximately caused by Tenant's failure to perform its obligations under this
Lease or that in the ordinary course of things would be likely to result
therefrom. As used herein, the following terms are defined: (a) The "worth at
the time of award" of the amounts referred to in Sections (i) and (ii) is
computed by allowing interest at the lesser of 18 percent per annum or the
maximum lawful rate. The "worth at the time of award" of the amount referred to
in Section (iii) is computed by discounting such amount at the discount rate of
the Federal Reserve Bank of San Francisco at the time of award plus one percent;
(b) The "time of award" as used in clauses (i), (ii), and (iii) above is the
date on which judgment is entered by a court of competent jurisdiction; (c) The
"reasonable value" of the amount referred to in clause (ii) above is computed by
determining the mathematical product of (1) the "reasonable annual rental value"
(as defined herein) and (2) the number of years, including fractional parts
thereof, between the date of termination and the time of award. The "reasonable
value" of the amount referred to in clause (iii) is computed by determining the
mathematical product of (1) the annual Base Rent and other charges under this
Lease and (2) the number of years including fractional parts thereof remaining
in the balance of the term of this Lease after the time of award.

          Even though Tenant has breached this Lease and abandoned the Premises,
this Lease shall continue in effect for so long as Landlord does not terminate
Tenant's right to possession, and Landlord may enforce all its rights and
remedies under this Lease, including the right to recover rent as it becomes
due. This remedy is intended to be the remedy described in California Civil Code
Section 1951.4, and the following provision from such Civil Code Section is
hereby repeated: "The Lessor has the remedy described in California Civil Code
Section 1951.4 (lessor may continue lease in effect after lessee's breach and
abandonment and recover rent as it becomes due, if lessee has right to sublet or
assign, subject only to reasonable limitations)." Any such payments due Landlord
shall be made upon demand therefor from time to time and Tenant agrees that
Landlord may file suit to recover any sums falling due from time to time.
Notwithstanding any such reletting without termination, Landlord may at any time
thereafter elect in writing to terminate this Lease for such previous breach.

          Exercise by Landlord of any one or more remedies hereunder granted or
otherwise available shall not be deemed to be an acceptance of surrender of the
Premises and/or a termination of this Lease by Landlord, whether by agreement or
by operation of law, it being understood that such surrender and/or termination
can be effected only by the written agreement of Landlord and Tenant. Any law,
usage, or custom to the contrary notwithstanding, Landlord shall have the right
at all times to enforce the provisions of this Lease in strict accordance with
the terms hereof; and the failure of Landlord at any time to enforce its rights
under this Lease strictly in accordance with same shall not be construed as
having created a custom in any way or manner contrary to the specific terms,
provisions, and covenants of this Lease or as having modified the same. Tenant
and Landlord further agree that forbearance or waiver by Landlord to enforce its
rights pursuant to this Lease or at law or in equity, shall not be a waiver of
Landlord's right to enforce one or more of its rights in connection with any
subsequent default. A receipt by Landlord of rent or other payment with
knowledge of the breach of any covenant hereof shall not be deemed a waiver of
such breach, and no waiver by Landlord of any provision of this Lease shall be
deemed to have been made unless expressed in writing and signed by Landlord. To
the greatest extent permitted by law, Tenant waives the service of notice of
Landlord's intention to re-enter as provided for in any statute, or to institute
legal proceedings to that end, and also waives all right of redemption in case
Tenant shall be dispossessed by a judgment or by warrant of any court or judge.
The terms "enter," "re-enter," "entry" or "re-entry," as used in this Lease, are
not restricted to their technical legal meanings. Any reletting of the Premises
shall be on such terms and conditions as Landlord in its sole discretion may
determine (including without limitation a term different than the remaining
Lease Term, rental concessions, alterations and repair of the Premises, lease of
less than the entire Premises to any tenant and leasing any or all other
portions of the Project before reletting the Premises). Landlord shall not be
liable, nor shall Tenant's obligations hereunder be diminished, because of
Landlord's failure to relet the Premises or collect rent due in respect of such
reletting.

                                      -7-

<PAGE>

     25  Tenant's Remedies/Limitation of Liability. Landlord shall not be in
default hereunder unless Landlord fails to perform any of its obligations
hereunder within 30 days after written notice from Tenant specifying such
failure (unless such performance will, due to the nature of the obligation,
require a period of time in excess of 30 days, then after such period of time as
is reasonably necessary). All obligations of Landlord hereunder shall be
construed as covenants, not conditions; and, except as may be otherwise
expressly provided in this Lease, Tenant may not terminate this Lease for breach
of Landlord's obligations hereunder. All obligations of Landlord under this
Lease will be binding upon Landlord only during the period of its ownership of
the Premises and not thereafter. The term "Landlord" in this Lease shall mean
only the owner, for the time being of the Premises, and in the event of the
transfer by such owner of its interest in the Premises, such owner shall
thereupon be released and discharged from all obligations of Landlord thereafter
accruing, but such obligations shall be binding during the Lease Term upon each
new owner for the duration of such owner's ownership. Any liability of Landlord
under this Lease shall be limited solely to its interest in the Project, and in
no event shall any personal liability be asserted against Landlord in connection
with this Lease nor shall any recourse be had to any other property or assets of
Landlord.

     26  Waiver of Jury Trial. TENANT AND LANDLORD WAIVE ANY RIGHT TO TRIAL BY
JURY OR TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN
CONTRACT, TORT, OR OTHERWISE, BETWEEN LANDLORD AND TENANT ARISING OUT OF THIS
LEASE OR ANY OTHER INSTRUMENT, DOCUMENT, OR AGREEMENT EXECUTED OR DELIVERED IN
CONNECTION HEREWITH OR THE TRANSACTIONS RELATED HERETO.

     27  Subordination. This Lease and Tenant's interest and rights hereunder
are and shall be subject and subordinate at all times to the lien of any first
mortgage, now existing or hereafter created on or against the Project or the
Premises, and all amendments, restatements, renewals, modifications,
consolidations, refinancing, assignments and extensions thereof, without the
necessity of any further instrument or act on the part of Tenant. Tenant agrees,
at the election of the holder of any such mortgage, to attorn to any such
holder. Tenant agrees upon demand to execute, acknowledge and deliver such
instruments, confirming such subordination and such instruments of attornment as
shall be requested by any such holder. Tenant hereby appoints Landlord attorney
in fact for Tenant irrevocably (such power of attorney being coupled with an
interest) to execute, acknowledge and deliver any such instrument and
instruments for and in the name of the Tenant and to cause any such instrument
to be recorded. Notwithstanding the foregoing, any such holder may at any time
subordinate its mortgage to this Lease, without Tenant's consent, by notice in
writing to Tenant, and thereupon this Lease shall be deemed prior to such
mortgage without regard to their respective dates of execution, delivery or
recording and in that event such holder shall have the same rights with respect
to this Lease as though this Lease had been executed prior to the execution,
delivery and recording of such mortgage and had been assigned to such holder.
The term "mortgage" whenever used in this Lease shall be deemed to include deeds
of trust, security assignments and any other encumbrances, and any reference to
the "holder" of a mortgage shall be deemed to include the beneficiary under a
deed of trust.

     28  Mechanic's Liens. Tenant has no express or implied authority to create
or place any lien or encumbrance of any kind upon, or in any manner to bind the
interest of Landlord or Tenant in, the Premises or to charge the rentals payable
hereunder for any claim in favor of any person dealing with Tenant, including
those who may furnish materials or perform labor for any construction or
repairs. Tenant covenants and agrees that it will pay or cause to be paid all
sums legally due and payable by it on account of any labor performed or
materials furnished in connection with any work performed on the Premises and
that it will save and hold Landlord harmless from all loss, cost or expense
based on or arising out of asserted claims or liens against the leasehold estate
or against the interest of Landlord in the Premises or under this Lease. Tenant
shall give Landlord immediate written notice of the placing of any lien or
encumbrance against the Premises and cause such lien or encumbrance to be
discharged within 30 days of the filing or recording thereof; provided, however,
Tenant may contest such liens or encumbrances as long as such contest prevents
foreclosure of the lien or encumbrance and Tenant causes such lien or
encumbrance to be bonded or insured over in a manner satisfactory to Landlord
within such 30 day period.

     29  Estoppel Certificates. Tenant agrees, from time to time, within 10 days
after request of Landlord, to execute and deliver to Landlord, or Landlord's
designee, any estoppel certificate requested by Landlord, stating that this
Lease is in full force and effect, the date to which rent has been paid, that
Landlord is not in default hereunder (or specifying in detail the nature of
Landlord's default), the termination date of this Lease and such other matters
pertaining to this Lease as may be requested by Landlord. Tenant's obligation to
furnish each estoppel certificate in a timely fashion is a material inducement
for Landlord's execution of this Lease. No cure or grace period provided in this
Lease shall apply to Tenant's obligations to timely deliver an estoppel
certificate. Tenant hereby irrevocably appoints Landlord as its attorney in fact
to execute on its behalf and in its name any such estoppel certificate if Tenant
fails to execute and deliver the estoppel certificate within 10 days after
Landlord's written request thereof.

     30  Environmental Requirements. Except for Hazardous Material contained in
products used by Tenant in de minimis quantities for ordinary cleaning and
office purposes, Tenant shall not permit or cause any party to bring any
Hazardous Material upon the Premises or transport, store, use, generate,
manufacture or release any Hazardous Material in or about the Premises without
Landlord's prior written consent. Tenant, at its sole cost and expense, shall
operate its business in the Premises in strict compliance with all Environmental
Requirements and shall remediate in manner satisfactory to Landlord any
Hazardous Materials released on or from the Project by Tenant, its agents,
employees, contractors, subtenants or invitees. Tenant shall complete and
certify to disclosure statements as requested by Landlord from time to time
relating to Tenant's transportation, storage, use, generation, manufacture, or
release of Hazardous Materials on the Premises. The term "Environmental
Requirements" means all applicable present and future statutes, regulations,
ordinances, rules, codes, judgments, orders or other similar enactments of any
governmental authority or agency regulating or relating to health, safety, or
environmental conditions on, under, or about the Premises or the environment,
including without limitation, the following: the Comprehensive Environmental
Response, Compensation

                                       -8-

<PAGE>

and Liability Act; the Resource Conservation and Recovery Act; and all state and
local counterparts thereto, and any regulations or policies promulgated or
issued thereunder. The term "Hazardous Materials" means and includes any
substance, material, waste, pollutant, or contaminant listed or defined as
hazardous or toxic, under any Environmental Requirements, asbestos and
petroleum, including crude oil or any fraction thereof, natural gas, or
synthetic gas usable for fuel (or mixtures of natural gas and such synthetic
gas). As defined in Environmental Requirements, Tenant is and shall be deemed to
be the "operator" of Tenant's "facility" and the "owner" of all Hazardous
Materials brought on the Premises by Tenant, its agents, employees, contractors
or invitees, and the wastes, by-products, or residues generated, resulting, or
produced therefrom.

          Tenant shall indemnify, defend, and hold Landlord harmless from and
against any and all losses (including, without limitation, diminution in value
of the Premises or the Project and loss of rental income from the Project),
claims, demands, actions, suits, damages (including, without limitation,
punitive damages), expenses (including, without limitation, remediation,
removal, repair, corrective action, or cleanup expenses), and costs (including,
without limitation, actual attorneys' fees, consultant fees or expert fees and
including, without limitation, removal or management of any asbestos brought
into the Premises or disturbed in breach of the requirements of this Paragraph
30, regardless of whether such removal or management is required by law) which
are brought or recoverable against, or suffered or incurred by Landlord as a
result of any release of Hazardous Materials for which Tenant is obligated to
remediate as provided above or any other breach of the requirements under this
Paragraph 30 by Tenant, its agents, employees, contractors, subtenants,
assignees or invitees, regardless of whether Tenant had knowledge of such
noncompliance. The obligations of Tenant under this Paragraph 30 shall survive
any termination of this Lease.

         Landlord shall have access to, and a right to perform inspections and
tests of, the Premises to determine Tenant's compliance with Environmental
Requirements, its obligations under this Paragraph 30, or the environmental
condition of the Premises. Access shall be granted to Landlord upon Landlord's
prior notice to Tenant and at such times so as to minimize, so far as may be
reasonable under the circumstances, any disturbance to Tenant's operations. Such
inspections and tests shall be conducted at Landlord's expense, unless such
inspections or tests reveal that Tenant has not complied with any Environmental
Requirement, in which case Tenant shall reimburse Landlord for the reasonable
cost of such inspection and tests. Landlord's receipt of or satisfaction with
any environmental assessment in no way waives any rights that Landlord holds
against Tenant.

     31  Rules and Regulations. Tenant shall, at all times during the Lease Term
and any extension thereof, comply with all reasonable rules and regulations at
any time or from time to time established by Landlord covering use of the
Premises and the Project. The current rules and regulations are attached hereto.
In the event of any conflict between said rules and regulations and other
provisions of this Lease, the other terms and provisions of this Lease shall
control. Landlord shall not have any liability or obligation for the breach of
any rules or regulations by other tenants in the Project.

     32  Security Service. Tenant acknowledges and agrees that, while Landlord
may patrol the Project, Landlord is not providing any security services with
respect to the Premises and that Landlord shall not be liable to Tenant for, and
Tenant waives any claim against Landlord with respect to, any loss by theft or
any other damage suffered or incurred by Tenant in connection with any
unauthorized entry into the Premises or any other breach of security with
respect to the Premises.

     33  Force Majeure. Except for monetary obligations, Neither Landlord nor
Tenant shall be held responsible for delays in the performance of its
obligations hereunder when caused by strikes, lockouts, labor disputes, acts of
God, inability to obtain labor or materials or reasonable substitutes therefor,
governmental restrictions, governmental regulations, governmental controls,
delay in issuance of permits, enemy or hostile governmental action, civil
commotion, fire or other casualty, and other causes beyond the reasonable
control of Landlord or Tenant ("Force Majeure").

     34  Entire Agreement. This Lease constitutes the complete agreement of
Landlord and Tenant with respect to the subject matter hereof. No
representations, inducements, promises or agreements, oral or written, have been
made by Landlord or Tenant, or anyone acting on behalf of Landlord or Tenant,
which are not contained herein, and any prior agreements, promises,
negotiations, or representations are superseded by this Lease. This Lease may
not be amended except by an instrument in writing signed by both parties hereto.

     35  Severability. If any clause or provision of this Lease is illegal,
invalid or unenforceable under present or future laws, then and in that event,
it is the intention of the parties hereto that the remainder of this Lease shall
not be affected thereby. It is also the intention of the parties to this Lease
that in lieu of each clause or provision of this Lease that is illegal, invalid
or unenforceable, there be added, as a part of this Lease, a clause or provision
as similar in terms to such illegal, invalid or unenforceable clause or
provision as may be possible and be legal, valid and enforceable.

     36  Brokers. Tenant represents and warrants that it has dealt with no
broker, agent or other person in connection with this transaction and that no
broker, agent or other person brought about this transaction, other than the
broker, if any, set forth on the first page of this Lease, and Tenant agrees to
indemnify and hold Landlord harmless from and against any claims by any other
broker, agent or other person claiming a commission or other form of
compensation by virtue of having dealt with Tenant with regard to this leasing
transaction.

     37  Miscellaneous. (a) Any payments or charges due from Tenant to Landlord
hereunder shall be considered rent for all purposes of this Lease.

     (b) If and when included within the term "Tenant," as used in this
instrument, there is more than one person, firm or corporation, each shall be
jointly and severally liable for the obligations of Tenant.

                                      -9-

<PAGE>

     (c)  All notices required or permitted to be given under this Lease shall
be in writing and shall be sent by registered or certified mail, return receipt
requested, or by a reputable national overnight courier service, postage
prepaid, or by hand delivery addressed to the parties at their addresses below,
and with a copy sent to Landlord at 14100 East 35th Place, Aurora, Colorado
80011. Either party may by notice given aforesaid change its address for all
subsequent notices. Except where otherwise expressly provided to the contrary,
notice shall be deemed given upon delivery.

     (d)  Except as otherwise expressly provided in this Lease or as otherwise
required by law, Landlord retains the absolute right to withhold any consent or
approval.

     (e)  At Landlord's request from time to time Tenant shall furnish Landlord
with true and complete copies of its most recent annual and quarterly financial
statements prepared by Tenant or Tenant's accountants and any other financial
information or summaries that Tenant typically provides to its lenders or
shareholders.

     (f)  Neither this Lease nor a memorandum of lease shall be filed by or on
behalf of Tenant in any public record. Landlord may prepare and file, and upon
request by Landlord Tenant will execute, a memorandum of lease.

     (g)  The normal rule of construction to the effect that any ambiguities are
to be resolved against the drafting party shall not be employed in the
interpretation of this Lease or any exhibits or amendments hereto.

     (h)  The submission by Landlord to Tenant of this Lease shall have no
binding force or effect, shall not constitute an option for the leasing of the
Premises, nor confer any right or impose any obligations upon either party until
execution of this Lease by both parties.

     (i)  Words of any gender used in this Lease shall be held and construed to
include any other gender, and words in the singular number shall be held to
include the plural, unless the context otherwise requires. The captions inserted
in this Lease are for convenience only and in no way define, limit or otherwise
describe the scope or intent of this Lease, or any provision hereof, or in any
way affect the interpretation of this Lease.

     (j)  Any amount not paid by Tenant within 5 days after its due date in
accordance with the terms of this Lease shall bear interest from such due date
until paid in full at the lesser of the highest rate permitted by applicable law
or 15 percent per year. It is expressly the intent of Landlord and Tenant at all
times to comply with applicable law governing the maximum rate or amount of any
interest payable on or in connection with this Lease. If applicable law is ever
judicially interpreted so as to render usurious any interest called for under
this Lease, or contracted for, charged, taken , reserved, or received with
respect to this Lease, then it is Landlord's and Tenant's express intent that
all excess amounts theretofore collected by Landlord be credited on the
applicable obligation (or, if the obligation has been or would thereby be paid
in full, refunded to Tenant), and the provisions of this Lease immediately shall
be deemed reformed and the amounts thereafter collectible hereunder reduced,
without the necessity of the execution of any new document, so as to comply with
the applicable law, but so as to permit the recovery of the fullest amount
otherwise called for hereunder.

     (k)  Construction and interpretation of this Lease shall be governed by the
laws of the state in which the Project is located, excluding any principles of
conflicts of laws.

     (l)  Time is of the essence as to the performance of Tenant's obligations
under this Lease.

     (m)  All exhibits and addenda attached hereto are hereby incorporated into
this Lease and made a part hereof. In the event of any conflict between such
exhibits or addenda and the terms of this Lease, such exhibits or addenda shall
control.

     38  Landlord's Lien/Security Interest. Tenant hereby grants Landlord a
security interest, and this Lease constitutes a security agreement, within the
meaning of and pursuant to the Uniform Commercial Code of the state in which the
Premises are situated as to all of Tenant's property situate in, or upon, or
used in connection with the Premises (except merchandise sold in the ordinary
course of business) as security for all of Tenant's obligations hereunder,
including, without limitation, the obligation to pay rent. Such personalty thus
encumbered includes specifically all trade and other fixtures for the purpose of
this Paragraph and inventory, equipment, contract rights, accounts receivable
and the proceeds thereof. In order to perfect such security interest, Tenant
shall execute such financing statements and file the same at Tenant's expense at
the state and county Uniform Commercial Code filing offices as often as Landlord
in its discretion shall require; and Tenant hereby irrevocably appoints Landlord
its agent for the purpose of executing and filing such financing statements on
Tenant's behalf as Landlord shall deem necessary.

     39  Limitation of Liability of Trustees, Shareholders, and Officers of
ProLogis Trust. Any obligation or liability whatsoever of ProLogis Trust, a
Maryland real estate investment trust, which may arise at any time under this
Lease or any obligation or liability which may be incurred by it pursuant to any
other instrument, transaction, or undertaking contemplated hereby shall not be
personally binding upon, nor shall resort for the enforcement thereof be had to
the property of, its trustees, directors, shareholders, officers, employees or
agents, regardless of whether such obligation or liability is in the nature of
contract, tort, or otherwise.

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

                                      -10-

<PAGE>

TENANT:                             LANDLORD:

InterVideo, Inc., a California      ProLogis Limited Partnership-I, a Delaware
Corporation                         limited partnership
--------------------------------

                                    By: ProLogis Trust, a  Maryland real estate
                                    investment trust, General Partner

By:_____________________________
Name:___________________________
Title:__________________________    By:_________________________________________
                                        Ned K. Anderson
                                    Title: Managing Director

Address:                            Address:

47350 Fremont Boulevard             47775 Fremont Boulevard

Fremont, Ca. 94538                  Fremont, CA 94538

                                      -11-

<PAGE>

                              Rules and Regulations
                              ---------------------

1    The sidewalk, entries, and driveways of the Project shall not be obstructed
     by Tenant, or its agents, or used by them for any purpose other than
     ingress and egress to and from the Premises.

2.   Tenant shall not place any objects, including antennas, outdoor furniture,
     etc., in the parking areas, landscaped areas or other areas outside of its
     Premises, or on the roof of the Project.

3.   Except for seeing-eye dogs, no animals shall be allowed in the offices,
     halls, or corridors in the Project.

4.   Tenant shall not disturb the occupants of the Project or adjoining
     buildings by the use of any radio or musical instrument or by the making of
     loud or improper noises.

5.   If Tenant desires telegraphic, telephonic or other electric connections in
     the Premises, Landlord or its agent will direct the electrician as to where
     and how the wires may be introduced; and, without such direction, no boring
     or cutting of wires will be permitted. Any such installation or connection
     shall be made at Tenant's expense.

6.   Tenant shall not install or operate any steam or gas engine or boiler, or
     other mechanical apparatus in the Premises, except as specifically approved
     in the Lease. The use of oil, gas or inflammable liquids for heating,
     lighting or any other purpose is expressly prohibited. Explosives or other
     articles deemed extra hazardous shall not be brought into the Project.

7.   Parking any type of recreational vehicles is specifically prohibited on or
     about the Project. Except for the overnight parking of operative vehicles,
     no vehicle of any type shall be stored in the parking areas at any time. In
     the event that a vehicle is disabled, it shall be removed within 48 hours.
     There shall be no "For Sale" or other advertising signs on or about any
     parked vehicle. All vehicles shall be parked in the designated parking
     areas in conformity with all signs and other markings. All parking will be
     open parking, and no reserved parking, numbering or lettering of individual
     spaces will be permitted except as specified by Landlord.

8.   Tenant shall maintain the Premises free from rodents, insects and other
     pests.

9.   Landlord reserves the right to exclude or expel from the Project any person
     who, in the judgment of Landlord, is intoxicated or under the influence of
     liquor or drugs or who shall in any manner do any act in violation of the
     Rules and Regulations of the Project.

10   Tenant shall not cause any unnecessary labor by reason of Tenant's
     carelessness or indifference in the preservation of good order and
     cleanliness. Landlord shall not be responsible to Tenant for any loss of
     property on the Premises, however occurring, or for any damage done to the
     effects of Tenant by the janitors or any other employee or person.

11   Tenant shall give Landlord prompt notice of any defects in the water, lawn
     sprinkler, sewage, gas pipes, electrical lights and fixtures, heating
     apparatus, or any other service equipment affecting the Premises.

12   Tenant shall not permit storage outside the Premises, including without
     limitation, outside storage of trucks and other vehicles, or dumping of
     waste or refuse or permit any harmful materials to be placed in any
     drainage system or sanitary system in or about the Premises.

13   All moveable trash receptacles provided by the trash disposal firm for the
     Premises must be kept in the trash enclosure areas, if any, provided for
     that purpose.

14   No auction, public or private, will be permitted on the Premises or the
     Project.

15   No awnings shall be placed over the windows in the Premises except with the
     prior written consent of Landlord.

16   The Premises shall not be used for lodging, sleeping or cooking or for any
     immoral or illegal purposes or for any purpose other than that specified in
     the Lease. No gaming devices shall be operated in the Premises.

17   Tenant shall ascertain from Landlord the maximum amount of electrical
     current which can safely be used in the Premises, taking into account the
     capacity of the electrical wiring in the Project and the Premises and the
     needs of other tenants, and shall not use more than such safe capacity.
     Landlord's consent to the installation of electric equipment shall not
     relieve Tenant from the obligation not to use more electricity than such
     safe capacity.

18   Tenant assumes full responsibility for protecting the Premises from theft,
     robbery and pilferage.

19   Tenant shall not install or operate on the Premises any machinery or
     mechanical devices of a nature not directly related to Tenant's ordinary
     use of the Premises and shall keep all such machinery free of vibration,
     noise and air waves which may be transmitted beyond the Premises.

                                      -12-

<PAGE>

                 HVAC Maintenance/Service Contract Requirements
                 ----------------------------------------------

A service contract with a Landlord approved HVAC contractor must become
effective within thirty (30) days of occupancy and service visits should be
performed on a quarterly basis. The following are the approved HVAC contractors:

             Thermoscape                                 510/445-0700
             Phoenix Heating and Air Conditioning        408/487-0390
             Cal-Air Conditioning                        408/947-0155

We suggest that you send the following list to one of the above HVAC contractors
to be assured that these items are included in the maintenance contract:

1.    Adjust belt tension;

2.    Lubricate all moving parts, as necessary;

3.    Inspect and adjust all temperature and safety controls;

4.    Check refrigeration system for leaks and operation;

5.    Check refrigeration system for moisture;

6.    Inspect compressor oil level and crank case heaters;

7.    Check head pressure, suction pressure and oil pressure;

8.    Inspect air filters and replace when necessary;

9.    Check space conditions;

10.   Check condensate drains and drain pans and clean, if necessary;

11.   Inspect and adjust all valves;

12.   Check and adjust dampers;

13.   Run machine through complete cycle.

Note: A certificate must be provided for our files not later than thirty (30)
      days after mutual execution hereof. Failure to provide such certificate or
      perform said services, when required, shall constitute material default of
      this lease.

                                      -13-

<PAGE>

                                   ADDENDUM I

                              BASE RENT ADJUSTMENTS
                              ---------------------

                  ATTACHED TO AND A PART OF THE LEASE AGREEMENT
                     DATED _______________________, BETWEEN

                         ProLogis Limited Partnership-I
                                       and
                                InterVideo, Inc.

         Base Rent shall equal the following amounts for the respective periods
set forth below:

                   Period                             Monthly Base Rent
                   ------                             -----------------
             11/01/00 - 10/31/01                          $32,971
             11/01/01 - 10/31/02                          $33,941
             11/01/02 - 10/30/03                          $34,911

                                  ADDENDUM II

                                      -14-

<PAGE>

                                  CONSTRUCTION
                                  ------------
                                    (TURNKEY)

                  ATTACHED TO AND A PART OF THE LEASE AGREEMENT
                        DATED _________________, BETWEEN

                         ProLogis Limited Partnership-I

                                       and

                                InterVideo, Inc.

                  (a) Landlord agrees to furnish or perform at Landlord's sole
cost and expense those items of construction and those improvements (the "Tenant
                                                                          ------
Improvements") specified below:
------------

                      Landlord shall insure that the HVAC systems are working
properly throughout the space.

                  (b) If Tenant shall desire any changes, Tenant shall so advise
Landlord in writing and Landlord shall determine whether such changes can be
made in a reasonable and feasible manner. Any and all costs of reviewing any
requested changes, and any and all costs of making any changes to the Tenant
Improvements which Tenant may request and which Landlord may agree to shall be
at Tenant's sole cost and expense and shall be paid to Landlord upon demand and
before execution of the change order.

                  (c) Landlord shall proceed with and complete the construction
of the Tenant Improvements. As soon as such improvements have been Substantially
Completed, Landlord shall notify Tenant in writing of the date that the Tenant
Improvements were Substantially Completed. Such date, unless an earlier date is
specified as the Commencement Date in this Lease or otherwise agreed to in
writing between Landlord and Tenant, shall be the "Commencement Date," unless
                                                   -----------------
the completion of such improvements was delayed due to any act or omission of,
or delay caused by, Tenant including, without limitation, Tenant's failure to
approve plans, complete submittals or obtain permits within the time periods
agreed to by the parties or as reasonably required by Landlord, in which case
the Commencement Date shall be the date such improvements would have been
completed but for the delays caused by Tenant. The Tenant Improvements shall be
deemed substantially completed ("Substantially Completed") when, in the opinion
of the construction manager (whether an employee or agent of Landlord or a third
party construction manager), the Premises are substantially completed except for
punch list items which do not prevent in any material way the use of the
Premises for the purposes for which they were intended. After the Commencement
Date Tenant shall, upon demand, execute and deliver to Landlord a letter of
acceptance of delivery of the Premises.

                  (d) The failure of Tenant to take possession of or to occupy
the Premises shall not serve to relieve Tenant of obligations arising on the
Commencement Date or delay the payment of rent by Tenant. Subject to applicable
ordinances and building codes governing Tenant's right to occupy or perform in
the Premises, Tenant shall be allowed to install its tenant improvements,
machinery, equipment, fixtures, or other property on the Premises during the
final stages of completion of construction provided that Tenant does not thereby
interfere with the completion of construction or cause any labor dispute as a
result of such installations, and provided further that Tenant does hereby agree
to indemnify, defend, and hold Landlord harmless from any loss or damage to such
property, and all liability, loss, or damage arising from any injury to the
Project or the property of Landlord, its contractors, subcontractors, or
materialmen, and any death or personal injury to any person or persons arising
out of such installations, whether or not any such loss, damage, liability,
death, or personal injury was caused by Landlord's negligence. Any such
occupancy or performance in the Premises shall be in accordance with the
provisions governing Tenant-Made Alterations and Trade Fixtures in the Lease,
and shall be subject to Tenant providing to Landlord satisfactory evidence of
insurance for personal injury and property damage related to such installations
and satisfactory payment arrangements with respect to installations permitted
hereunder. Delay in putting Tenant in possession of the Premises shall not serve
to extend the term of this Lease or to make Landlord liable for any damages
arising therefrom.

                  (e) Except for incomplete punch list items, Tenant upon the
Commencement Date shall have and hold the Premises as the same shall then be
without any liability or obligation on the part of Landlord for making any
further alterations or improvements of any kind in or about the Premises.

                                  ADDENDUM III

                                LETTER OF CREDIT
                                ----------------

                                      -15-

<PAGE>

                  ATTACHED TO AND A PART OF THE LEASE AGREEMENT
                  DATED __________________, 20_______, BETWEEN

         ProLogis Limited Partnership-I, a Delaware Limited Partnership
                                       and
                                InterVideo, Inc.

     Upon execution of the Lease, Tenant shall provide Landlord a Letter of
Credit in the amount of $116,000 which may be in the form of an unconditional,
irrevocable letter of credit from a bank reasonably acceptable to Landlord. The
primary purpose of the Letter of Credit is to reimburse Landlord for Leasing
costs including but not limited to tenant improvements and additional security
in the event of default. The letter of credit shall either provide that it does
not expire until 60 days after the end of the Lease term or, if it is for less
than the full term of the Lease, shall be renewed by Tenant at least 30 days
prior to its expiration during the term of the Lease. The letter of credit shall
provide that it may be drawn down upon by Landlord at any time Landlord delivers
its site draft to the bank. If Landlord sells or conveys the Premises, Tenant
shall, at Landlord's request, cooperate in having the letter of credit
transferred to the purchaser. If the letter of credit is ever drawn upon by
Landlord pursuant to the terms of the Lease and this Addendum, tenant shall
within ten (10) days thereafter cause the letter of credit to be restored to its
original amount.

                                      -16-

<PAGE>

                            FORM OF LETTER OF CREDIT

                      [LETTERHEAD OF LETTER OF CREDIT BANK]

                                                     [DATE]

ProLogis Trust

Attention:  _______________

     Re:    Irrevocable Transferrable Letter of Credit
            No. ___________________________________

Beneficiary:

     By order of our client, ______________ (the "Applicant"), we hereby
                                                  ---------
establish this Irrevocable Transferrable Letter of Credit No. _______ in your
favor for an amount up to but not exceeding the aggregate sum of
___________________ and No/100 Dollars ($_________) (as reduced from time to
time in accordance with the terms hereof, the "Letter of Credit Amount"),
                                               -----------------------
effective immediately, and expiring on the close of business at our office at
the address set forth above one year from the date hereof unless renewed as
hereinafter provided.

     Funds under this Letter of Credit are available to you on or prior to the
expiry date against presentation by you of your (i) sight drafts drawn on us in
the form of Annex 1 hereto, indicating this Letter of Credit number and (ii)
request in the form of Annex 2 hereto (such sight draft and request, together
referred to as a "Drawing Request"), sight draft(s), completed and signed by one
                  ---------------
of your officers. Presentation of your Drawing Requests may be made by you to us
at the address set forth above or may be made by facsimile transmission, to the
following facsimile number _____________. You may present to us one or more
Drawing Requests from time to time prior to the expiry date in an aggregate
amount not to exceed the Letter of Credit Amount then in effect (it being
understood that the honoring by us of each Drawing Request shall reduce the
Letter of Credit Amount then in effect).

     This Letter of Credit will be automatically renewed for a one-year period
upon the expiration date set forth above and upon each anniversary of such date,
unless at least sixty (60) days prior to such expiration date, or prior to any
anniversary of such date, we notify both you and the Applicant in writing by
certified mail that we elect not to so renew the Letter of Credit.

     This Letter of Credit sets forth in full the terms of our undertaking and
such undertaking shall not in any way be modified, amended or amplified by
reference to any document or instrument referred to herein or in which this
Letter of Credit is referred to or to which this Letter of Credit relates, and
no such reference shall be deemed to incorporate herein by reference any
document or instrument.

     All bank charges and commissions incurred in this transaction are for the
Applicant's account.

     This Letter of Credit is transferrable by you and your successors and
assigns any number of times in its entirety and not in part, but only by
delivery to us of a Notice of Assignment in the form of Annex 3 hereto.

     We hereby agree with the drawers, endorsers, and bona fide holders of
drafts drawn under and in compliance with the terms of this Letter of Credit
that such drafts will be duly honored upon presentation to the drawee from our
own funds and not the funds of the Applicant and shall be available to such
drawers, endorsers, and bona fide holders, as the case may be, on or before
noon, New York time, on the Business Day (defined below) next following the date
on which such drafts are received by us. "Business Day" shall mean any day which
is not a Saturday, Sunday or day on

                                      -17-

<PAGE>

which we are required or authorized by law to be closed in New York, New York.

     To the extent not inconsistent with the express terms hereof, this Letter
of Credit shall be governed by, and construed in accordance with, the terms of
the Uniform Customs and Practice for Commercial Documentary Credits (1993
Revision), I.C.C. Publication No. 500 (the "UCP 500") and as to matters not
                                            -------
governed by the UCP 500, this Letter of Credit shall be governed by and
construed in accordance with the laws of the State of New York.

                                     Very truly yours,

                                     [NAME OF LETTER OF CREDIT BANK]

                                     By:________________________________________
                                        Name:
                                        Title:

                                      -18-

<PAGE>

                                                                         ANNEX 1

                                   SIGHT DRAFT

                                                 _______, 2000

         For value received, at sight pay to the order of PROLOGIS TRUST, the
sum of [Amount in words] [Amount in Figures] United States Dollars drawn under
[Name of Letter of Credit Bank] Irrevocable Transferrable Letter of Credit No.
________ dated _________________, 2000.

                                 PROLOGIS TRUST

                                 By:______________________________________
                                       Ned K. Anderson
                                 Title: Managing Director

                                      -19-

<PAGE>

                                                                         ANNEX 2

                                 DRAWING REQUEST

                                                 _____________, 2000

[NAME AND ADDRESS OF LETTER
OF CREDIT BANK]

             Re: Irrevocable Transferrable Letter of Credit No. ______ (the
"Letter of Credit")
 ----------------

     The undersigned (the "Beneficiary"), hereby certifies to [Name of Letter of
                           -----------
Credit Bank] (the "Issuer") that:
                   ------

     (a) The Beneficiary is making a request for payment in lawful currency of
the United States of America under Irrevocable Transferrable Letter of Credit
No. _________ (the "Letter of Credit") in the amount of $ ______.

     (b) The Letter of Credit Amount (as defined in the Letter of Credit) as of
the date hereof and prior to payment of the amount demanded in this Drawing
Request is $_____. The amount requested by this Drawing Request does not exceed
the Letter of Credit Amount.

     [(c) Demand is made for payment under the Letter of Credit as a result of
the occurrence and continuation of an Event of Default (as defined in the Lease
Agreement).]

     Please wire transfer the proceeds of the drawing to the following account
of the Beneficiary at the financial institution indicated below:

     Unless otherwise defined, all capitalized terms used herein have the
meanings provided in, or by reference in, the Letter of Credit.

     IN WITNESS WHEREOF, the undersigned has duly executed and delivered this
Drawing Request as of the ___ day of _______________, 2000.

                              PROLOGIS TRUST

                              By:
                                 Name:  Ned K. Anderson
                                 Title: Managing Director

                                      -20-

<PAGE>

                                     ANNEX 3

                              NOTICE OF ASSIGNMENT

                                                              ____________, 2000

[NAME AND ADDRESS OF
LETTER OF CREDIT BANK]

             Re: Irrevocable Transferable Letter of Credit No.

     The undersigned (the "Beneficiary"), hereby notifies [Name of Letter of
                           -----------
Credit Bank] (the "Issuer") that it has irrevocably assigned the
                   ------
above-referenced Letter of Credit to ________ (the "Assignee") with an address
                                                    --------
at ________________ effective as of the date the Issuer receives this Notice of
Assignment. The Assignee acknowledges and agrees that the Letter of Credit
Amount may have been reduced pursuant to the terms thereof, and that the
Assignee is bound by any such reduction.

     IN WITNESS WHEREOF, the undersigned has duly executed and delivered this
Notice of Assignment as of this _____ day of _______, 2000.

                                     PROLOGIS TRUST

                                     By:
                                                 Ned K. Anderson
                                     Title:       Managing Director

Agreed:

[Assignee]

                                      -21-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00033-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00033-of-00352.parquet"}]]