Document:

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                                                                   EXHIBIT 10.19
                                     LESSEE

EMC CORPORATION                      EMC(2)                            No. 12035

                             MASTER LEASE AGREEMENT

This MASTER LEASE AGREEMENT (hereinafter called the "Master Agreement") is
entered into by and between EMC Corporation, a Massachusetts corporation
(hereinafter called "Lessor"), having its principal place of business at 171
South Street, Hopkinton, MA 01748, and FUTURELINK CORP. (hereinafter called
"Lessee"), having a principal place of business at 6 Morgan Drive, Suite 100,
Irvine, CA 92618.

                                  I. THE LEASE

1.1   LEASE OF EQUIPMENT. In accordance with the terms and conditions of this
      Master Agreement, Lessor agrees to lease to Lessee, and Lessee agrees to
      lease from Lessor, the units of personal property (hereinafter
      individually called a "Unit" and collectively called "Equipment")
      described in supplement(s) which are executed pursuant to and incorporate
      the terms of this Master Agreement (each hereinafter, a "Supplement").
      Each Supplement shall constitute a separate, distinct, and independent
      lease and contractual obligation of Lessee. The term "Lease" as used
      hereinafter shall refer to an individual Supplement which incorporates
      the terms of this Master Agreement. Lessor or its assignee shall retain
      the full legal title to the Equipment, it being expressly agreed by both
      parties that this Master Agreement and each Lease shall constitute an
      agreement of lease only. Each Lessee shall be binding upon Lessor and
      Lessee from the date of acceptance and execution of the applicable
      Supplement, by Lessor at its headquarters.

1.2   TERM OF LEASE. The original term of lease for each Unit (hereinafter the
      "Original Term") shall commence on the date specified in the applicable
      Supplement and, subject to Section 2.5 below, shall terminate as
      specified in such Supplement. No Lease may be canceled by Lessee for any
      reason whatsoever.

1.3   DISCLAIMERS; WARRANTIES. LESSEE ACKNOWLEDGES AND AGREES THAT LESSOR MAKES
      NO EXPRESS OR IMPLIED WARRANTIES ARISING OUT OF OR RELATED TO LESSEE'S
      USE OR OPERATION OF THE EQUIPMENT. LESSOR EXPRESSLY DISCLAIMS THE IMPLIED
      WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE FOR
      THE EQUIPMENT OR OTHER PRODUCTS, DOCUMENTATION AND SERVICES PROVIDED
      HEREIN. IN NO EVENT SHALL LESSOR BE LIABLE FOR ANY INDIRECT SPECIAL,
      INCIDENTAL OR CONSEQUENTIAL DAMAGES ARISING OUT OF OR ASSOCIATED WITH THE
      EQUIPMENT OR THE LEASE THEREOF EVEN IF ADVISED OF THE POSSIBILITY OF SUCH
      DAMAGES.

1.4   RENTAL PAYMENTS. Lessee shall pay rental to Lessor for the Unit(s) in the
      amounts and on the dates specified in the applicable Supplement. If any
      rental or other amount due hereunder is not paid within five (5) days of
      the due date thereof, Lessee shall pay to Lessor on demand, as additional
      rental, interest thereon from the due date until payment at a rate equal
      to the lesser of (i) eighteen (18%) per annum, or (ii) the maximum rate
      permitted by law. All rental and other amounts payable by Lessee to
      Lessor hereunder shall be paid to Lessor at the address specified above,
      or at such other place as Lessor may designate in writing to Lessee. Time
      is of the essence with respect to all of Lessee's obligations under any
      Lease.

1.5   RETURN OF EQUIPMENT. Upon expiration of the Original Term, Lessee will
      immediately return the Equipment to Lessor as provided in Section 2.3
      below. Should Lessee not return the Equipment at the end of the Original
      Term, the Equipment shall continue to be held and leased hereunder, and
      the Lease shall thereupon be extended for successive three (3) month
      terms, at the same monthly rental, subject to the right of either Lessee
      or the Lessor to terminate the Lease upon ninety (90) days written
      notice, whereupon the Lessee shall forthwith deliver the Equipment to the
      Lessor. If Lessee fails to return the Equipment upon demand therefor by
      Lessor, Lessee shall pay Lessor, as the reasonable measure of Lessor's
      damages, the value, at replacement cost, of the Equipment so converted.

                            II. COVENANTS OF LESSEE

2.1   PAYMENT OF RENTAL AND OTHER MONIES. Each lease is a net lease and Lessee
      acknowledges and agrees that Lessee's obligation to pay all rental and
      other sums payable hereunder, and the rights of Lessor in and to such
      payments, shall be absolute and unconditional and shall not be subject to
      any abatement, reduction, setoff, counterclaim or other defense for any
      reason whatsoever. It being the intent of Lessor, and an inducement to
      Lessor, to enter into the Lease, to claim all available tax benefits of
      ownership with respect to the Equipment, Lessee acknowledges and agrees
      that (i) no right, title or interest in the Equipment has been or is
      intended to be passed to Lessee, other than the right to maintain
      possession and use of the Equipment for the Original Term, conditioned on
      Lessee's performance of the terms and conditions of the Lease, (ii)
      Lessee has not taken and will not at any time during the Original Term,
      take any action which shall cause Lessor to lose any tax benefits of
      ownership, and (iii) the Stipulated Loss Values (defined in the
      applicable Lease) agreed to under this Lease are intended to provide
      recovery by Lessor of such lost tax benefits of ownership.

2.1.1 ACCEPTANCE OF EQUIPMENT. Lessee's acceptance of the Equipment shall be
      conclusively and irrevocably evidenced by Lessee executing the
      Certificate of Delivery and Acceptance and upon acceptance the Lessee of
      such Equipment shall be noncancellable for the Original Term unless
      otherwise agreed to in writing by Lessor.

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2.2     USE OF EQUIPMENT. Lessee shall use the Equipment solely in the conduct
        of his business, in a manner and for the use contemplated by the
        manufacturer thereof, and in compliance with all laws, rules and
        regulations of every governmental authority having jurisdiction over the
        Equipment and with the provisions of all policies of insurance carried
        by Lessee pursuant to Section 2.4 below; provided, however, Lessee shall
        have the right to allow third parties, under Lessee's supervision, to
        use the Equipment, so long as Lessee shall retain uninterrupted
        possession and control of the Equipment. Lessee shall pay all costs,
        expenses, fees and charges incurred in conjunction with the use and
        operation of the Equipment.

2.3     DELIVERY, INSTALLATION, MAINTENANCE AND REPAIR. Lessee shall be solely
        responsible, at its own expense, for the delivery of the Equipment to
        Lessor, the packing, rigging and delivery of the Equipment back to
        Lessor upon expiration of the Original Term in good repair, condition,
        and working order, ordinary wear and tear excepted, at the location(s)
        within the continental United States specified by Lessor. Lessor is also
        solely responsible for the installation, de-installation, maintenance
        and repair of the Equipment. Lessee shall, at its expense, (a) keep the
        Equipment in good repair, condition and working order, ordinary wear and
        tear excepted, and (b) at the expiration of the Original Term or any
        renewal term have the Equipment inspected and certified as acceptable
        for maintenance service by the manufacturer. Lessor shall be entitled to
        inspect the Equipment at Lessee's location at reasonable times.

2.4     TERMS. Lessee agrees to pay, and to indemnify and hold Lessor harmless
        from, all license fees, assessments, and sales, use, property, excise
        and other taxes and charges ("Imports") (other than those assessed by
        Lessor's ????????? ????????) now or hereafter imposed by any
        governmental body or agency upon or with respect to (a) the Equipment or
        the possession, ownership, use or operation thereof or (b) this Master
        Agreement, any Lease, or the consummation of the transaction herein
        contemplated. All required personal property tax returns relating to the
        Equipment shall be filed by Lessee unless otherwise provided in writing.
        Lessee shall reimburse Lessor promptly upon demand for the amount of any
        Imports remitted by Lessor which are required hereunder to be borne by
        Lessee.

2.5     LOSS OF EQUIPMENT. Lessee shall bear the entire risk of the Equipment
        being lost, destroyed or otherwise rendered permanently unfit or
        unavailable for use from any cause whatsoever (hereinafter called an
        "Event of Loss") after its delivery to Lessee. If an Event of Loss shall
        occur with respect to any Unit, Lessee shall promptly and fully notify
        Lessor thereof. On the rental payment date following such notice Lessee
        shall pay to Lessor an amount equal to the rental payment or payments
        due and payable for such Unit on each date plus a sum equal to the
        Stipulated Loss Value (as defined in the applicable Supplement) of such
        Units as of the date of such payment set forth in each Supplement. Upon
        the making of such payment by Lessee regarding any Unit, the rental
        obligation for such Unit shall cease, the Lease as to such Unit shall
        terminate and (except in the case of loss, theft or complete
        destruction) Lessor shall be entitled to recover possession of such Unit
        at Lessor's expense in accordance with the provisions of Section 2.3
        above. Provided that Lessor has received the Stipulated Loss Value for
        any Unit, Lessee shall be entitled to the proceeds of any recovery in
        respect of such Unit from insurance or otherwise.

2.6     INSURANCE. Lessee shall obtain and maintain for the entire term of the
        Lease, at its own expense, property damage and liability insurance and
        insurance against loss or damage to the Equipment including, without
        limitation, loss by fire (including so-called extended coverage), theft
        and such other risks of loss as are required on the type of Equipment
        leased hereunder and by businesses in which Lessee is engaged in such
        amounts in such form and with such insurance as shall be satisfactory to
        Lessor, provided however, that such insurance for loss or damage of any
        Unit shall always be at a minimum, the amount of the Stipulated Loss
        Value of each Unit. Each insurance policy will name Lessee as insured
        and Lessor as an additional insured and loss payee thereof as Lessor's
        interest may appear and shall provide that it may not be canceled or
        altered without at least 30 days prior written notice to Lessor or its
        successors and assigns. Lessee shall provide to Lessor a certificate of
        insurance as evidence of insurance coverage prior to delivery of any
        Unit.

2.7     INDEMNITY. Lessee shall and does hereby indemnify Lessor and its
        successors and assigns against, and hold Lessor and its successors and
        assigns harmless from, any and all claims, demands, actions and suits,
        proceedings, costs, expenses, damages and liabilities, including
        reasonable attorneys' fees, hereinafter ("Claims"), arising out of,
        connected with or resulting from this Master Agreement, any Lease, or
        the Equipment, including, without limitation, the selection, ownership,
        control, maintenance, lease, purchase, delivery, possession, condition,
        use, operation, or return of the Equipment. Lessee shall give Lessor
        immediate notice of any Claim and Lessee shall satisfy, pay and
        discharge any and all judgments and fines that may be recovered against
        Lessor in connection with any such Claim. Lessor shall give Lessee
        written notice of any such Claim of which Lessor has knowledge.

2.8     POSSESSION; ASSIGNMENT; PLEDGE. Without the prior written consent of
        Lessor, which such consent as it pertains to subsection (n) and (d),
        shall not be unreasonably withheld or delayed, Lessee shall not (a)
        sublease the Equipment, or any part thereof, provided, that Lessee may,
        without the prior written consent of Lessor, permit any parent or
        subsidiary of Lessee to use the Equipment, or any part thereof, in the
        ordinary course of its business, (b) assign this Master Agreement or any
        Lease or its interest hereunder or thereafter, (c) create or incur any
        liens or encumbrance with respect to the equipment, or any part thereof,
        (d) move the Equipment, or any part thereof, or permit any of the
        Equipment to be moved from the location at which it is first installed,
        or (e) permit the Equipment, or any part thereof, to be removed outside
        the continental limits of the United States.

2.9     INDEMNIFICATION. At any time during the term of a Lease, Lessor may
        require Lessee to legibly mark each Unit subject to such Lease in a
        reasonably prominent location with a label, ???? or other marking
        stating that the Equipment is owned by Lessor.

2.10    ALTERATIONS OR MODIFICATIONS. Lessee shall not make any alterations of
        or additions to the Equipment without the prior written consent of
        Lessor. At any time during the Original Term, of any Lease there may be
        added to each Lease additional Units of the same type as are rented
        thereunder for a term equal to the remaining Original Term and, subject
        to the terms and conditions hereof, at the rental rates applicable to
        such Equipment and term in effect at the time the order is placed,
        provided that the order is in writing and accepted by Lessor. Such
        acceptance shall be at the sole discretion of Lessor. All additions,
        attachments or accessories to or improvements of the Equipment shall
        immediately belong to and become property of the Lessor unless, at the
        request of Lessor, such additions, attachments or accessories to or
        improvements of the Equipment are removed prior to the return of said
        Equipment by Lessee. Lessee shall be responsible for the costs of such
        removal and shall restore the Equipment to the same operating conditions
        as when it became subject to the Lease.

2.11    EQUIPMENT TO BE PERSONAL PROPERTY. Lessee agrees that the Equipment
        shall be and remains personal property notwithstanding the manner in
        which it may be attached or affixed to realty, and Lessor shall do all
        acts and enter into all agreements necessary to ensure that the
        Equipment remains personal property.
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2.12  FINANCIAL STATEMENTS. Lessee shall promptly furnish, or cause to be
      furnished, to Lessor such financial or other statements respecting the
      condition and operations of Lessee or respecting the Equipment as Lessor
      may from time to time reasonably request.

2.13  LESSEE REPRESENTATIONS. Lessee hereby represents, warrants and covenants
      that with respect to this Master Agreement and each Lease entered into
      hereunder:

      (a)   The execution, delivery and performance thereof by the Lessee have
            been duly authorized by all necessary corporate action;

      (b)   The individual executing such was duly authorized to do so;

      (c)   This Master Agreement and each Lease constitute the legal, valid
            and binding obligations of the Lessee enforceable in accordance
            with their respective terms.

                           III.  DEFAULT AND REMEDIES

3.1   EVENTS OF DEFAULT. The occurrence of any of the following shall
      constitute an Event of Default hereunder; (a) Lessee shall fail to pay
      on the due date any rental or other payment due under any lease, (b) any
      provision of this Master Agreement or any Lease or any provision in any
      document provided by Lessee for this Master Agreement or any Lease, or in
      any document furnished pursuant to the provisions hereof or otherwise,
      shall prove to have been false or misleading in any material respect as
      of the date when it was made, (c) Lessee shall fail to perform any
      provision, covenant, condition or agreement made by it under this Master
      Agreement or Lease, and such failure shall continue for ten (10) days
      after notice thereof from Lessor to Lessee or (d) bankruptcy,
      receivership, insolvency, reorganization, dissolution, liquidation, or
      other similar proceedings shall be instituted by or against Lessee or all
      or any part of its property under the Federal Bankruptcy Code or other
      law of the United States or of any state law, and if against Lessee it
      shall consent thereto or shall fail to cause the same to be discharged
      within twenty (20) days, or (e) Lessee shall default under any agreement
      with respect to the purchase or installation of the Equipment, or (f) if
      Lessee or any guarantor of Lessee's obligations hereunder shall default
      under any other agreement with Lessor.

3.2   REMEDIES. If an Event of Default hereunder shall occur and be continuing,
      Lessor may exercise any one or more of the following remedies: (a)
      immediately terminate this Master Agreement and any or all Leases and
      Lessee's rights hereunder and thereunder, (b) proceed, by appropriate
      court action or actions either at law or in equity, to enforce
      performance by Lessee of the applicable covenants of the Lease or to
      recover damages for the breach thereof, (c) by notice in writing to
      Lessee, recover all amounts due on or before the date of the event of
      default, plus, as liquidated damages for loss of a bargain and not as a
      penalty, accelerate, and declare to be immediately due and payable all
      rentals and other sums payable under any or all such Leases, without any
      presentment, demand, protest or future notice (all of which hereby are
      expressly waived by Lessee), whereupon the same shall be and become
      immediately due and payable, and (d) personally, or by its agents take
      immediate possession of the Equipment, or any part thereof, from Lessee
      and for such purpose, enter upon Lessee's premises where any of the
      Equipment is located with or without notice or process of law and free
      from all claims by Lessee. The exercise of any of the foregoing remedies
      by Lessor shall not constitute a termination of any Lease unless Lessor so
      notifies Lessee in writing.

3.3   DISPOSITION OF EQUIPMENT. In the event Lessor repossesses Equipment,
      Lessor may (a) lease the Equipment, or any portion thereof, in such a
      manner, for such time and upon such term(s) as Lessor may determine or
      (b) sell the Equipment, or any portion thereof, at one or more public or
      private sales, in such manner, and at such times and upon such terms as
      Lessor may determine. In the event that Lessor leases any such Units, any
      rentals received by Lessor for the Remaining Lease Term(s) (the period
      ending on the date when the Original Term for the Unit(s) would have
      expired if an Event of Default had not occurred) for such Units shall be
      applied to the payment of (i) all costs and expenses (including
      attorneys' fees) incurred by Lessor in retaking possession of, and
      removing, storing, repairing, refurbishing and leasing such Units, and
      (ii) the rentals for the remainder of the Original Term and all other
      sums, including past due rentals, remaining unpaid under the Lease. The
      balance of such rentals, if any, shall be applied first to reimburse
      Lessee for any sums previously paid by Lessee as liquidated damages, and
      any remaining amounts shall be retained by Lessor. All rentals received by
      Lessor for the period commencing after the expiration of the Remaining
      Lease Term(s) shall be retained by Lessor. Lessee shall remain liable to
      Lessor to the extent that the aggregate amount of the sums referred to in
      clauses (i) and (ii) above shall exceed the aggregate rentals received by
      Lessor under such leases for the respective Remaining Lease Term(s)
      applicable to the Units covered by such leases. In the event that Lessor
      shall sell or otherwise dispose of (other than pursuant to a lease) any
      such Unit, the proceeds thereof shall be applied to the payment of (i)
      all costs and expenses (including reasonable attorneys' fees) incurred by
      Lessor in retaking possession of, and removing, storing, repairing,
      refurbishing and selling or otherwise disposing of such Unit(s), (ii) the
      rentals that either did or would have accrued under the Lease but are
      unpaid up to the time of such sale or other disposition, (iii) any and
      all other sums (other than rentals) then owing to Lessor by Lessee under,
      and (iv) the Stipulated Loss Value of such Unit(s) determined as of the
      date of such sales or other disposition in accordance with the schedule
      set forth in the Lease for such Unit(s). The balance of such proceeds, if
      any, shall be applied first to reimburse Lessee for any sums previously
      paid by Lessee as liquidated damages, and any remaining amounts shall be
      retained by Lessor. Lessee shall remain liable to Lessor to the extent
      that the aggregate amount of the sums referred to in clauses (i) through
      (iv) above shall exceed the aggregate proceeds received by Lessor in
      connection with the sale or disposition of the Equipment (other than
      pursuant to a lease).

                               IV. MISCELLANEOUS

4.1   PERFORMANCE OF LESSEE'S OBLIGATIONS. Upon Lessee's failure to pay any sum
      or perform any obligation hereunder when due, Lessor shall have the
      option, but shall in no case be obligated, to pay such sum or perform
      such obligation, whereupon such sum or the cost of such performance shall
      immediately become due and payable as additional rent from Lessee to
      Lessor with interest at the highest legal rate from the date payment or
      performance was due.

4.2   ASSIGNMENT. No right, obligation or interest of Lessee with respect to
      this Master Agreement, any Lease or Equipment shall, without the prior
      written consent of Lessor, by assignable by Lessee or by operation of law,
      and any such purported assignment, transfer or succession shall be null
      and void. Lessor may, at any time, without the consent of Lessee, assign
      the Master Agreement and any Lease or any interest herein or therein to
      any party. In the event of any assignment of Lessor, the assignee shall
      have all of Lessor's rights hereunder, but none of its obligations, and
      upon receipt by Lessee of written notice of any such assignment, Lessee
      shall make all payments thereafter becoming due under any assigned Lease
      to such assignee without regard to any set-off, defense or counter claim
      that Lessee may have against Lessor.

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4.3  Quiet Enjoyment. So long as Lessee shall not be in default hereunder, and
     Lessor continues to receive all rent and other sums payable by Lessee
     hereunder in accordance with the terms hereof, neither Lessor nor its
     assignee, shall interfere with Lessee's right of quiet enjoyment and use of
     the Equipment.

4.4  Further Assurances. Lessee agrees that at any time, and from time to time,
     after the execution and delivery of this Lease, it shall, upon the request
     of Lessor, execute and deliver such further documents and do such further
     acts and things as Lessor may reasonably request in order fully to effect
     the purposes of this Lease including without limitation, the filing of
     financial and confirmation statements. Lessee authorizes Lessor to file a
     financing statement or any confirmation statements signed only by Lessor in
     accordance with the Uniform Commercial Code or signed by Lessor as Lessee's
     attorney in fact.

4.5  Rights, Remedies, Powers. Each and every right, remedy and power granted to
     Lessor hereunder shall be cumulative and in addition to any other right,
     remedy or power herein specifically granted or now or hereafter adopting in
     equity, at law, by virtue of statutes or otherwise, and may be exercised by
     Lessor from time to time concurrently or independently and as often and in
     such order as Lessor may deem expedient. And any failure or delay on the
     part of Lessor in exercising any such right, remedy or power, or
     abandonment or discontinuance of steps to enforce the same, shall not
     operate as a waiver thereof or affect Lessor's right thereafter to exercise
     the same; and any single or partial exercise of any such right, remedy or
     power shall not preclude any other or further exercise thereof or the
     exercise of any other right, remedy or power.

4.6  Notices. Any notice, request, demand, consent, approval or other
     communication provided or permitted hereunder shall be in writing and shall
     be conclusively deemed to have been received by a party hereto on the day
     it is delivered to such party at its address set forth above (or at such
     other address as such party shall specify to the other party in writing),
     or if sent by registered or certified mail, return receipt requested, on
     the third business day after the day on which mailed, addressed to such
     party at such address.

4.7  Section Headings. Section headings are inserted for convenience only and
     shall not affect any construction or interpretation of any Lease.

4.8  Binding Effect. Each Lease, subject to the provisions of Sections 2.8 and
     4.3 hereof, shall be binding upon and shall inure to the benefit of the
     respective successors and assigns of the Lessee and Lessor.

4.9  Governing Law. Each Lease shall be governed in all respects by the laws of
     the Commonwealth of Massachusetts.

4.10 Entire Lease. Each Lease, consisting of the terms and conditions of this
     Master Agreement, a Supplement, and any Amendments, Schedules or Riders to
     either of them, constitutes the entire agreement between Lessor and Lessee.
     No waiver, comment, modification or change of terms of this Lease shall
     bind either party unless in writing signed by both parties, and then such
     waiver, comment, modification or change shall be effective only in the
     specific instance and for the specific purpose given. There are no
     understandings, agreements, representations or warranties, express or
     implied, not specified therein regarding any Lease or the Equipment leased
     thereunder. Any terms and conditions of any purchase order or other
     document (with the exception of Supplements) submitted by Lessee in
     connection with any Lease which are in addition to or inconsistent with the
     terms and conditions of such Lease will not be binding on Lessor and will
     not apply to the Lease. LESSEE BY THE SIGNATURE BELOW OF ITS AUTHORIZED
     REPRESENTATIVE ACKNOWLEDGES THAT IT HAS READ THIS MASTER AGREEMENT,
     UNDERSTANDS IT, AND AGREES TO BE BOUND BY ITS TERMS AND CONDITIONS WITH
     RESPECT TO ANY LEASE ENTERED INTO HEREUNDER.

LEASE ACCEPTED BY:

     EMC CORPORATION, (Lessor)                    FUTURELINK CORP. (Lessee)

     BY:                                          BY: /s/ Raghu Kilambi
         ---------------------                        -------------------------

     TITLE:                                       TITLE: Chief Financial Officer
           -------------------                           -----------------------<PAGE>   1
                                                                   EXHIBIT 10.21

                        ASSIGNMENT OF LEASE AND CONSENT

     THIS ASSIGNMENT OF LEASE AND CONSENT ("Assignment") is made as of October
15, 1999, between FUTURELINK CORP., a Delaware Corporation ("Assignor-Lessee")
and FUTURELINK MICRO VISIONS CORP., a Delaware Corporation ("Assignee-Successor
Lessee"), and consented to by KILROY REALTY L.P., a Delaware Limited
Partnership, KILROY REALTY CORPORATION, a Maryland Corporation, General Partner
("Lessor").

                                    RECITALS:

This Assignment of Lease and Consent is made with reference to the following
facts and objectives:

     A.   Lessor, acting in the capacity of and therein referred to as Lessor,
and FUTURELINK DISTRIBUTION CORPORATION, a Colorado Corporation ("FLDC"),
acting in the capacity of and therein referred to as Lessee, entered into a
lease, dated September 23, 1999 (the "Lease"), a copy of which is attached
hereto as Exhibit "A," in which Lessor leased to FLDC and FLDC leased from
Lessor premises located at 220 Technology Drive, Suite 100, Irvine, California
92618, as more particularly described in Exhibit "A" of the Lease (the
"Premises").

     B.   FLDC and FUTURELINK CALIFORNIA ACQUISITION CORP., a Delaware
Corporation ("FCAC"), entered into an Agreement and Plan of Merger, dated as
of August 1, 1999, which provided for the statutory merger (the "Merger") of
FLDC with and into FCAC, and FCAC concurrently with the Merger changed its
corporate name to FUTURELINK CORP. Assignor-Lessee herein thereafter assigned
its leasehold interests in and under the Lease and in and to the Premises to
FUTURELINK MICRO VISIONS CORP., a Delaware Corporation, a wholly owned
subsidiary of Assignor (referred to herein as Assignee-Successor Lessee.)

     C.   The parties hereto desire to acknowledge and confirm the foregoing
matters, and Lessor hereby consent to said assignments.

     NOW THEREFORE the parties hereto do hereby agree as follows:

     1.   CONFIRMATION OF ASSIGNMENTS.

          1.1  The parties acknowledge that the Lessee's interest in and under
the Lease and in and to the Premises were assigned by FLDC to Assignor-Lessee
as a result of the statutory merger.

          1.2  Assignor-Lessee acknowledges that it subsequently assigned the
Lessee's interests in and under the Lease and in and to the Premises to
Assignee-Successor Lessee.

          1.3  Pursuant to the provisions of Paragraph 12.2(a)(i) of the Lease,
each of Assignor-Lessee and Assignee-Successor Lessee became obligated for and
assumed the Lessee's obligation under the Lease. The parties hereto further
acknowledge that Assignee-Successor Lessee is now the Lessee under the Lease.

     2.   LESSOR'S CONSENT. Lessor consents to the Assignments described above,
without waiver of the restriction in the Lease concerning further assignments,
and with the understanding and agreement that Assignor-Lessee and
Assignee-Successor Lessee are each liable and responsible for the Lessee's
covenants, conditions and obligations under the Lease.

     3.   MISCELLANEOUS.

          3.1  ATTORNEYS' FEES. If any party commences an action against any of
the parties hereto arising out of or in connection with this Assignment, the
prevailing party or parties shall be entitled to recover from the losing party
or parties reasonable attorneys' fees and costs of suit.

          3.2  LESSOR HELD HARMLESS. In the event of any dispute between
Assignor-Lessee and Assignee-Successor Lessee, not involving a dispute with
Lessor, both Assignor-Lessee and Assignee-Successor Lessee shall hold Lessor
free and harmless from and indemnified against any loss or damage occasioned
by such dispute between Assignor-Lessee and Assignee-Successor Lessee,
including Lessor's reasonable attorneys' fees.

          3.3  NOTICE. Any notice, demand, request, consent, approval or
communication that

                                       1

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any party desires or is required to give to another party or any other person
shall be in writing and sent as provided in Paragraph 23 of the Lease.

          3.4  SUCCESSORS. This Assignment shall be binding upon and inure to
the benefit of the parties and their heirs, personal representatives and
permitted successors and assigns.

          3.5  INTERPRETATION AND CONFIRMATION. Words used herein which are
defined in the Lease shall have the same meaning when used in this Assignment.
As herein assigned, the Lease is hereby ratified, affirmed and approved, and is
hereby acknowledged to be in full force and effect. Lessor and Successor Lessee
both acknowledge and agree that to their best information and belief no default
exists, no event has occurred and no condition exists which, with the giving of
notice or the lapse of time or both, will constitute a default under the Lease
by either party.

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

ADDRESS FOR NOTICES

FutureLink Corp.                                FUTURELINK CORP.
300, 250 6th Ave. S.W.                          A Delaware Corporation
Calgary, Alberta T3P 3H7
Attn: Corporate Secretary                       By: /s/ illegible
                                                    ____________________
                                                Title: Chairman & CEO

                                                By: /s/ illegible
                                                   _____________________

                                                Title: President & CEO
                                                       "ASSIGNOR-LESSEE"

FutureLink Micro Visions Corp.                  FUTURELINK MICRO VISIONS
100 6 Morgan                                    CORP.,
Irvine, California 92618                        A Delaware Corporation
Att'n: Scott Hauck                              By: /s/ illegible
                                                   _____________________
with a copy to:
                                                Title: President
Paul Hastings Janofsky & Walker
695 Town Center Drive, Suite 1700
Costa Mesa, California 92626-1924               By: /s/ illegible
Att'n: Ralph Winter                                 _____________________

2250 E. Imperial Highway, Suite 1200            Title: Chief Financial Officer
El Segundo, California 90245
                                                "ASSIGNEE-SUCCESSOR LESSEE"

With a copy to:                                 KILROY REALTY, L.P.,
                                                A Delaware Limited Partnership
McDaniel & McDaniel
Marshall L. McDaniel                            By: KILROY REALTY CORPORATION,
2250 E. Imperial Highway, Suite 1200                A Maryland Corporation,
El Segundo, California 90245                        General Partner

                                                 By: /s/ Jeffrey C. Hawken
                                                    _____________________

                                                 Title: Executive Vice President
                                                        Chief Operating Officer

                                                 By: /s/ John T. Fucci
                                                    _____________________

                                                 Title: Sr. Vice President
                                                        Asset Management
<PAGE>   3

        STANDARD INDUSTRIAL/COMMERCIAL MULTI-TENANT LEASE -- MODIFIED NET
                   AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION
                                     [LOGO]

1.   BASIC PROVISIONS ("BASIC PROVISIONS").

     1.1 PARTIES: This Lease ("LEASE"), dated for reference purposes only,
September 23, 1999, is made by and between KILROY REALTY, L.P., a Delaware
Limited Partnership KILROY REALTY CORPORATION, a Maryland Corporation, General
Partner ("LESSOR") and FUTURELINK DISTRIBUTION CORPORATION, a Colorado
Corporation ("LESSEE"), (collectively the "PARTIES," or individually a "PARTY").

     1.2(a) PREMISES: That certain portion of the Building, including all
improvements therein or to be provided by Lessor under the terms of this Lease,
commonly known by the street address of 220 Technology Drive, Suite 100, located
in the City of Irvine, County of Orange, State of California, with zip code
92618, as outlined on Exhibit "A" attached hereto ("PREMISES"). The "BUILDING"
is that certain building containing the Premises and generally described as
(describe briefly the nature of the Building): a two-story office building
containing approximately 30,043 rentable square feet, a plot plan of which is
attached hereto as Exhibit "B", comprising a portion of the Kilroy Technology
Center containing ten (10) buildings and a total of approximately 159,034
rentable square feet, a plot plan of which is attached hereto as Exhibit "C".
The Premises contain approximately 6,954 rentable square feet. In addition to
Lessee's rights to use and occupy the Premises as hereinafter specified, Lessee
shall have non-exclusive rights to the Common Areas (as defined in Paragraph 2.7
below) as hereinafter specified, but shall not have any rights to the roof,
exterior walls or utility raceways of the Building or to any other buildings in
the Industrial Center. The Premises, the Building, the Common Areas, the land
upon which they are located, along with all other buildings and improvements
thereon, are herein collectively referred to as the "INDUSTRIAL CENTER." (Also
see Paragraph 2.)

     1.2(b) PARKING: twenty-one (21) unreserved vehicle parking spaces
("UNRESERVED PARKING SPACES"); and -0- reserved vehicle parking
spaces ("RESERVED PARKING SPACES"). (Also see Paragraph 2.6.)

     1.3 TERM: one (1) years and -0- months ("ORIGINAL TERM") commencing October
1, 1999 ("COMMENCEMENT DATE") and ending September 30, 2000 ("EXPIRATION DATE").
(Also see Paragraph 3.)

     1.4 EARLY POSSESSION: N/A ("EARLY POSSESSION DATE"). (Also see Paragraphs
3.2 and 3.3.)

     1.5 BASE RENT: $10,778.70 per month ("BASE RENT"), payable on the first day
of each month commencing October 1, 1999 (Also see Paragraph 4.)

[ ]  If this box is checked, this Lease provides for the Base Rent to be
     adjusted per Addendum _______, attached hereto.

     1.6(a) BASE RENT PAID UPON EXECUTION: $10,778.70 as Base Rent for the month
of October, 1999.

     1.6(b) LESSEE'S SHARE OF COMMON AREA OPERATING EXPENSES: four and 37/100
percent (4.37%) ("LESSEE'S SHARE") as determined by [ ] prorata square footage
of the Premises as compared to the total square footage of the Industrial Center
or [X] other criteria as described in Addendum 49.

     1.7 SECURITY DEPOSIT: $32,336.10; see Addendum paragraph 51 ("SECURITY
DEPOSIT"). (Also see Paragraph 5.)

     1.8 PERMITTED USE: General office for a Computer Solutions Group
("PERMITTED USE") (Also see Paragraph 6.)

     1.9 INSURING PARTY. Lessor is the "INSURING PARTY." (Also see Paragraph 8.)

     1.10(a) REAL ESTATE BROKERS. The following real estate broker(s)
(collectively, the "BROKERS") and brokerage relationships exist in this
transaction and are consented to by the Parties (check applicable boxes):

[X] Prudential RB Allen Commercial (Ken Kovaleski) represents Lessor exclusively
    ("LESSOR'S BROKER");

[X] Lee and Associates (Ted Rommel) represents Lessee exclusively ("LESSEE'S
    BROKER"); or

[ ] _____________________ represents both Lessor and Lessee ("DUAL AGENCY").
    (Also see Paragraph 15.)

     1.10(b) PAYMENT TO BROKERS. Upon the execution of this Lease by both
Parties, Lessor shall pay to said Broker(s) jointly, or in such separate shares
as they may mutually designate in writing, a fee as set forth in a separate
written agreement between Lessor and said Broker.

     1.11 GUARANTOR. The obligations of the Lessee under this Lease are to be
guaranteed by N/A ("GUARANTOR"). (Also see Paragraph 37.)

     1.12 ADDENDA AND EXHIBITS. Attached hereto is an Addendum or Addenda
consisting of Paragraphs 49 through 55, and Exhibits "A" through "E", all of
which constitute a part of this Lease.

2.   PREMISES, PARKING AND COMMON AREAS.

     2.1 LETTING. Lessor hereby leases to Lessee, and Lessee hereby leases from
Lessor, the Premises, for the term, at the rental, and upon all of the terms,
covenants and conditions set forth in this Lease. Unless otherwise provided
herein, any statement of square footage set forth in this Lease, or that may
have been used in calculating rental and/or Common Area Operating Expenses, is
an approximation which Lessor and Lessee agree is reasonable and the rental and
Lessee's Share (as defined in Paragraph 1.6(b)) based thereon is not subject to
revision whether or not the actual square footage is more or less.

     2.2 CONDITION. Lessor shall deliver the Premises to Lessee clean and free
of debris on the Commencement Date and warrants to Lessee that the existing
plumbing, electrical systems, fire sprinkler system, lighting, air conditioning
and heating systems, and loading doors, if any, in the Premises, other than
those constructed by Lessee, shall be in good operating condition on the
Commencement Date. If a non-compliance with said warranty exists as of the
Commencement Date, Lessor shall, except as otherwise provided in this Lease,
promptly after receipt of written notice from Lessee setting forth with
specificity the nature and extent of such non-compliance, rectify same at
Lessor's expense. If Lessee does not give Lessor written notice of a
non-compliance with this warranty within thirty (30) days after the Commencement
Date, correction of that non-compliance shall be the obligation of Lessee at
Lessee's sole cost and expense.

     2.3 COMPLIANCE WITH COVENANTS, RESTRICTIONS AND BUILDING CODE. Lessor
warrants that any improvements (other than those constructed by Lessee or at
Lessee's direction) on or in the Premises which have been constructed or
installed by Lessor or with Lessor's consent or at Lessor's direction shall
comply with all applicable covenants or restrictions of record and applicable
building codes, regulations and ordinances in effect on the Commencement Date.
Lessor further warrants to Lessee that Lessor has no knowledge of any claim
having been made by any governmental agency that a violation or violations of
applicable building codes, regulations, or ordinances exist with regard to the
Premises as of the Commencement Date. Said warranties shall not apply to any
Alterations or Utility Installations (defined in Paragraph 7.3(a)) made or to be
made by Lessee. If the Premises do not comply with said

                                 PAGE 1 OF 13

<PAGE>   4

warranties, Lessor shall, except as otherwise provided in this Lease, promptly
after receipt of written notice from Lessee given within six (6) months
following the Commencement Date and setting forth with specificity the nature
and extent of such non-compliance, take such action, at Lessor's expense, as may
be reasonable or appropriate to rectify the non-compliance. Lessor makes no
warranty that the Permitted Use in Paragraph 1.8 is permitted for the Premises
under Applicable Laws (as defined in Paragraph 2.4).

     2.4 ACCEPTANCE OF PREMISES. Lessee hereby acknowledges: (a) that it has
been advised by the Broker(s) to satisfy itself with respect to the condition of
the Premises (including, but not limited to, the electrical and fire sprinkler
systems, security, environmental aspects, seismic and earthquake requirements,
and compliance with the Americans with Disabilities Act and applicable zoning,
municipal, county, state and federal laws, ordinances and regulations, and any
covenants or restrictions of record (collectively, "APPLICABLE LAWS") and the
present and future suitability of the Premises for Lessee's intended use; (b)
that Lessee has made such investigation as it deems necessary with reference to
such matters, is satisfied with reference thereto, and assumes all
responsibility therefore as the same relate to Lessee's occupancy of the
Premises and/or the terms of this Lease; and (c) that neither Lessor, nor any of
Lessor's agents, has made any oral or written representations or warranties with
respect to said matters other than as set forth in this Lease.

     2.5 LESSEE AS PRIOR OWNER/OCCUPANT. The warranties made by Lessor in this
Paragraph 2 shall be of no force or effect if immediately prior to the date set
forth in Paragraph 1.1 Lessee was the owner or occupant of the Premises. In such
event, Lessee shall, at Lessee's sole cost and expense, correct any
non-compliance of the Premises with said warranties.

     2.6 VEHICLE PARKING. Lessee shall be entitled to use the number of
Unreserved Parking Spaces and Reserved Parking Spaces specified in Paragraph
1.2(b) on those portions of the Common Areas designated from time to time by
Lessor for parking. Lessee shall not use more parking spaces than said number.
Said parking spaces shall be used for parking by vehicles no larger than
full-size passenger automobiles or pick-up trucks, herein called "PERMITTED SIZE
VEHICLES." Vehicles other than Permitted Size Vehicles shall be parked and
loaded or unloaded as directed by Lessor in the Rules and Regulations (as
defined in Paragraph 40) issued by Lessor. (Also see Paragraph 2.9.)

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

              (b) If Lessee permits or allows any of the prohibited activities
described in this Paragraph 2.6, then Lessor shall have the right, without
notice, in addition to such other rights and remedies that it may have, to
remove or tow away the vehicle involved and charge the cost to Lessee, which
cost shall be immediately payable upon demand by Lessor.

              (c) Lessor shall at the Commencement Date of this Lease provide
the parking facilities required by Applicable Law.

     2.7 COMMON AREAS -- DEFINITION. The term "COMMON AREAS" is defined as all
areas and facilities outside the Premises and within the exterior boundary line
of the Industrial Center and interior utility raceways within the Premises that
are provided and designated by the Lessor from time to time for the general
nonexclusive use of Lessor, Lessee and other lessees of the Industrial Center
and their respective employees, suppliers, shippers, customers, contractors and
invitees, including parking areas, loading and unloading areas, trash areas,
roadways, sidewalks, walkways, parkways, driveways and landscaped areas.

     2.8 COMMON AREAS -- LESSEE'S RIGHTS. Lessor hereby grants to Lessee, for
the benefit of Lessee and its employees, suppliers, shippers, contractors,
customers and invitees, during the term of this Lease, the non-exclusive right
to use, in common with others entitled to such use, the Common Areas as they
exist from time to time, subject to any rights, powers, and privileges reserved
by Lessor under the terms hereof or under the terms of any rules and regulations
or restrictions governing the use of the Industrial Center. Under no
circumstances shall the right herein granted to use the Common Areas be deemed
to include the right to store any property, temporarily or permanently, in the
Common Areas. Any such storage shall be permitted only by the prior written
consent of Lessor or Lessor's designated agent, which consent may be revoked at
any time. In the event that any unauthorized storage shall occur then Lessor
shall have the right, without notice, in addition to such other rights and
remedies that it may have, to remove the property and charge the cost to Lessee,
which cost shall be immediately payable upon demand by Lessor.

     2.9 COMMON AREAS -- RULES AND REGULATIONS. Lessor or such other person(s)
as Lessor may appoint shall have the exclusive control and management of the
Common Areas and shall have the right, from time to time, to establish, modify,
amend and enforce reasonable Rules and Regulations with respect thereto in
accordance with Paragraph 40. Lessee agrees to abide by and conform to all such
Rules and Regulations, and to cause its employees, suppliers, shippers,
customers, contractors and invitees to so abide and conform. Lessor shall not be
responsible to Lessee for the non-compliance with said rules and regulations by
other lessees of the Industrial Center.

     2.10 COMMON AREAS -- CHANGES. Lessor shall have the right, in Lessor's sole
discretion, from time to time:

              (a) To make changes to the Common Areas, including, without
limitation, changes in the location, size, shape and number of driveways,
entrances, parking spaces, parking areas, loading and unloading areas, ingress,
egress, direction of traffic, landscaped areas, walkways and utility raceways;

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

              (c) To designate other land outside the boundaries of the
Industrial Center to be a part of the Common Areas;

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

              (e) To use the Common Areas while engaged in making additional
improvements, repairs or alterations to the Industrial Center, or any portion
thereof; and

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

  3.   TERM.

     3.1 TERM. The Commencement Date, Expiration Date and Original Term of this
Lease are as specified in Paragraph 1.3.

     3.2 EARLY POSSESSION. If an Early Possession Date is specified in Paragraph
1.4 and if Lessee totally or partially occupies the Premises after the Early
Possession Date but prior to the Commencement Date, the obligation to pay Base
Rent shall be abated for the period of such early occupancy. All other terms of
this Lease, however, (including, but not limited to, the obligations to pay
Lessee's Share of Common Area Operating Expenses and to carry the insurance
required by Paragraph 8) shall be in effect during such period. Any such early
possession shall not affect nor advance the Expiration Date of the Original
Term.

     3.3 DELAY IN POSSESSION. If for any reason Lessor cannot deliver possession
of the Premises to Lessee by the Early Possession Date, if one is specified in
Paragraph 1.4, or if no Early Possession Date is specified, by the Commencement
Date, Lessor shall not be subject to any liability therefor, nor shall such
failure affect the validity of this Lease, or the obligations of Lessee
hereunder, or extend the term hereof, but in such case, Lessee shall not, except
as otherwise provided herein, be obligated to pay rent or perform any other
obligation of Lessee under the terms of this Lease until Lessor delivers
possession of the Premises to Lessee. If possession of the Premises is not
delivered to Lessee within sixty (60) days after the Commencement Date, Lessee
may, at its option, by notice in writing to Lessor within ten (10) days after
the end of said sixty (60) day period, cancel this Lease, in which event the
Parties shall be discharged from all obligations hereunder; provided further,
however, that if such written notice of Lessee is not received by Lessor within
said ten (10) day period, Lessee's right to cancel this Lease hereunder shall
terminate and be of no further force or effect. Except as may be otherwise
provided, and regardless of when the Original Term actually commences, if
possession is not tendered to Lessee when required by this Lease and Lessee does
not terminate this Lease, as aforesaid, the period free of the obligation to pay
Base Rent, if any, that Lessee would otherwise have enjoyed shall run from the
date of delivery of possession and continue for a period equal to the period
during which the Lessee would have otherwise enjoyed under the terms hereof, but
minus any days of delay caused by the acts, changes or omissions of Lessee.

  4.   RENT.

     4.1 BASE RENT. Lessee shall pay Base Rent and other rent or charges, as the
same may be adjusted from time to time, to Lessor in lawful money of the United
States, without offset or deduction, on or before the day on which it is due
under the terms of this Lease. Base Rent and all other rent and charges for any
period during the term hereof which is for less than one full month shall be
prorated based upon the actual number of days of the month involved. Payment of
Base Rent and other charges shall be made to Lessor at its address stated herein
or to such other persons or at such other addresses as Lessor may from time to
time designate in writing to Lessee.

     4.2 COMMON AREA OPERATING EXPENSES. Lessee shall pay to Lessor during the
term hereof, in addition to the Base Rent, Lessee's Share (as specified in
Paragraph 1.6(b)) of all Common Area Operating Expenses, as hereinafter defined,
during each calendar year of the term of this Lease, in accordance with the
following provisions:

              (a) "COMMON AREA OPERATING EXPENSES" are defined, for purposes of
this Lease, as all costs incurred by Lessor relating to the ownership and
operation of the Industrial Center, including, but not limited to, the
following:

                    (i) The operation, repair and maintenance, in neat, clean,
good order and condition, of the following:

                        (aa) The Common Areas, including parking areas, loading
and unloading areas, trash areas, roadways, sidewalks, walkways, parkways,

                                  PAGE 2 OF 13

<PAGE>   5
driveways, landscaped areas, striping, bumpers, irrigation systems, Common Area
lighting facilities, fences and gates, elevators and roof.

                        (bb) Exterior signs and any tenant directories.

                        (cc) Fire detection and sprinkler systems.

                    (ii) The cost of water, gas, electricity and telephone to
service the Common Areas.

                    (iii) Trash disposal, property management and security
services and the costs of any environmental inspections.

                    (iv) Reserves set aside for maintenance and repair of Common
Areas.

                    (v) Real Property Taxes (as defined in Paragraph 10.2) to be
paid by Lessor for the Building and the Common Areas under Paragraph 10 hereof.

                    (vi) The costs of the premiums for the insurance policies
maintained by Lessor under Paragraph 8 hereof.

                    (vii) Any deductible portion of an insured loss concerning
the Building or the Common Areas.

                    (viii) Any other services to be provided by Lessor that are
stated elsewhere in this Lease to be a Common Area Operating Expense.

              (b) Any Common Area Operating Expenses and Real Property Taxes
that are specifically attributable to the Building or to any other building in
the Industrial Center or to the operation, repair and maintenance thereof, shall
be allocated entirely to the Building or to such other building. However, any
Common Area Operating Expenses and Real Property Taxes that are not specifically
attributable to the Building or to any other building or to the operation,
repair and maintenance thereof, shall be equitably allocated by Lessor to all
buildings in the Industrial Center.

              (c) The inclusion of the improvements, facilities and services set
forth in Subparagraph 4.2(a) shall not be deemed to impose an obligation upon
Lessor to either have said improvements or facilities or to provide those
services unless the Industrial Center already has the same, Lessor already
provides the services, or Lessor has agreed elsewhere in this Lease to provide
the same or some of them.

              (d) Lessee's Share of Common Area Operating Expenses shall be
payable by Lessee within ten (10) days after a reasonably detailed statement of
actual expenses is presented to Lessee by Lessor. At Lessor's option, however,
an amount may be estimated by Lessor from time to time of Lessee's Share of
annual Common Area Operating Expenses and the same shall be payable monthly or
quarterly, as Lessor shall designate, during each 12-month period of the Lease
term, on the same day as the Base Rent is due hereunder. Lessor shall deliver to
Lessee within sixty (60) days after the expiration of each calendar year a
reasonably detailed statement showing Lessee's Share of the actual Common Area
Operating Expenses incurred during the preceding year. If Lessee's payments
under this Paragraph 4.2(d) during said preceding year exceed Lessee's Share as
indicated on said statement, Lessee shall be credited the amount of such
overpayment against Lessee's Share of Common Area Operating Expenses next
becoming due. If Lessee's payments under this Paragraph 4.2(d) during said
preceding year were less than Lessee's Share as indicated on said statement,
Lessee shall pay to Lessor the amount of the deficiency within ten (10) days
after delivery by Lessor to Lessee of said statement.

5. SECURITY DEPOSIT. Lessee shall deposit with Lessor upon Lessee's execution
hereof the Security Deposit set forth in Paragraph 1.7 as security for Lessee's
faithful performance of Lessee's obligations under this Lease. If Lessee fails
to pay Base Rent or other rent or charges due hereunder, or otherwise Defaults
under this Lease (as defined in Paragraph 13.1), Lessor may use, apply or retain
all or any portion of said Security Deposit for the payment of any amount due
Lessor or to reimburse or compensate Lessor for any liability, cost, expense,
loss or damage (including attorneys' fees) which Lessor may suffer or incur by
reason thereof. If Lessor uses or applies all or any portion of said Security
Deposit, Lessee shall within ten (10) days after written request therefore
deposit monies with Lessor sufficient to restore said Security Deposit to the
full amount required by this Lease. Any time the Base Rent increases during the
term of this Lease, Lessee shall, upon written request from Lessor, deposit
additional monies with Lessor as an addition to the Security Deposit so that the
total amount of the Security Deposit shall at all times bear the same proportion
to the then current Base Rent as the initial Security Deposit bears to the
initial Base Rent set forth in Paragraph 1.5. Lessor shall not be required to
keep all or any part of the Security Deposit separate from its general accounts.
Lessor shall, at the expiration or earlier termination of the term hereof and
after Lessee has vacated the Premises, return to Lessee (or, at Lessor's option,
to the last assignee, if any, of Lessee's interest herein), that portion of the
Security Deposit not used or applied by Lessor. Unless otherwise expressly
agreed in writing by Lessor, no part of the Security Deposit shall be considered
to be held in trust, to bear interest or other increment for its use, or to be
prepayment for any monies to be paid by Lessee under this Lease.

6.   USE.

     6.1 PERMITTED USE.

              (a) Lessee shall use and occupy the Premises only for the
Permitted Use set forth in Paragraph 1.8, or any other legal use which is
reasonably comparable thereto, and for no other purpose. Lessee shall not use or
permit the use of the Premises in a manner that is unlawful, creates waste or a
nuisance, or that disturbs owners and/or occupants of, or causes damage to the
Premises or neighboring premises or properties.

              (b) Lessor hereby agrees to not unreasonably withhold or delay its
consent to any written request by Lessee, Lessee's assignees or subtenants, and
by prospective assignees and subtenants of Lessee, its assignees and subtenants,
for a modification of said Permitted Use, so long as the same will not impair
the structural integrity of the improvements on the Premises or in the Building
or the mechanical or electrical systems therein, does not conflict with uses by
other lessees, is not significantly more burdensome to the Premises or the
Building and the improvements thereon, and is otherwise permissible pursuant to
this Paragraph 6. If Lessor elects to withhold such consent, Lessor shall within
five (5) business days after such request give a written notification of same,
which notice shall include an explanation of Lessor's reasonable objections to
the change in use.

     6.2 HAZARDOUS SUBSTANCES.

              (a) REPORTABLE USES REQUIRE CONSENT. The term "HAZARDOUS
SUBSTANCE" as used in this Lease shall mean any product, substance, chemical,
material or waste whose presence, nature, quantity and/or intensity of
existence, use, manufacture, disposal, transportation, spill, release or effect,
either by itself or in combination with other materials expected to be on the
Premises, is either: (i) potentially injurious to the public health, safety or
welfare, the environment, or the Premises; (ii) regulated or monitored by any
governmental authority; or (iii) a basis for potential liability of Lessor to
any governmental agency or third party under any applicable statute or common
law theory. Hazardous Substance shall include, but not be limited to,
hydrocarbons, petroleum, gasoline, crude oil or any products or by-products
thereof. Lessee shall not engage in any activity in or about the Premises which
constitutes a Reportable Use (as hereinafter defined) of Hazardous Substances
without the express prior written consent of Lessor and compliance in a timely
manner (at Lessee's sole cost and expense) with all Applicable Requirements (as
defined in Paragraph 6.3). "REPORTABLE USE" shall mean (i) the installation or
use of any above or below ground storage tank; (ii) the generation, possession,
storage, use, transportation, or disposal of a Hazardous Substance that requires
a permit from, or with respect to which a report, notice, registration or
business plan is required to be filed with, any governmental authority; and
(iii) the presence in, on or about the Premises of a Hazardous Substance with
respect to which any Applicable Laws require that a notice be given to persons
entering or occupying the Premises or neighboring properties. Notwithstanding
the foregoing, Lessee may, without Lessor's prior consent, but upon notice to
Lessor and in compliance with all Applicable Requirements, use any ordinary and
customary materials reasonably required to be used by Lessee in the normal
course of the Permitted Use, so long as such use is not a Reportable Use and
does not expose the Premises or neighboring properties to any meaningful risk of
contamination or damage or expose Lessor to any liability therefor. In addition,
Lessor may (but without any obligation to do so) condition its consent to any
Reportable Use of any Hazardous Substance by Lessee upon Lessee's giving Lessor
such additional assurances as Lessor, in its reasonable discretion, deems
necessary to protect itself, the public, the Premises and the environment
against damage, contamination or injury and/or liability therefor, including,
but not limited to, the installation (and, at Lessor's option, removal on or
before Lease expiration or earlier termination) of reasonably necessary
protective modifications to the Premises (such as concrete encasements) and/or
the deposit of an additional Security Deposit under Paragraph 5 hereof.

              (b) DUTY TO INFORM LESSOR. If Lessee knows, or has reasonable
cause to believe, that a Hazardous Substance has come to be located in, on,
under or about the Premises or the Building, other than as previously consented
to by Lessor, Lessee shall immediately give Lessor written notice thereof,
together with a copy of any statement, report, notice, registration,
application, permit, business plan, license, claim, action, or proceeding given
to, or received from, any governmental authority or private party concerning the
presence, spill, release, discharge of, or exposure to, such Hazardous Substance
including, but not limited to, all such documents as may be involved in any
Reportable Use involving the Premises. Lessee shall not cause or permit any
Hazardous Substance to be spilled or released in, on, under or about the
Premises (including, without limitation, through the plumbing or sanitary sewer
system).

              (c) INDEMNIFICATION. Lessee shall indemnify, protect, defend and
hold Lessor, its agents, employees, lenders and ground lessor, if any, and the
Premises, harmless from and against any and all damages, liabilities, judgments,
costs, claims, liens, expenses, penalties, loss of permits and attorneys' and
consultants' fees arising out of or involving any Hazardous Substance brought
onto the Premises by or for Lessee or by anyone under Lessee's control. Lessee's
obligations under this Paragraph 6.2(c) shall include, but not be limited to,
the effects of any contamination or injury to person, property or the
environment created or suffered by Lessee, and the cost of investigation
(including consultants' and attorneys' fees and testing), removal, remediation,
restoration and/or abatement thereof, or of any contamination therein involved,
and shall survive the expiration or earlier termination of this Lease. No
termination, cancellation or release agreement entered into by Lessor and Lessee
shall release Lessee from its obligations under this Lease with respect to
Hazardous Substances, unless specifically so agreed by Lessor in writing at the
time of such agreement.

                                  PAGE 3 OF 13
<PAGE>   6

     6.3 LESSEE'S COMPLIANCE WITH REQUIREMENTS. Lessee shall, at Lessee's sole
cost and expense, fully, diligently and in a timely manner, comply with all
"APPLICABLE REQUIREMENTS," which term is used in this Lease to mean all laws,
rules, regulations, ordinances, directives, covenants, easements and
restrictions of record, permits, the requirements of any applicable fire
insurance underwriter or rating bureau, and the recommendations of Lessor's
engineers and/or consultants, relating in any manner to the Premises (including,
but not limited to, matters pertaining to (i) industrial hygiene; (ii)
environmental conditions on, in, under or about the Premises, including soil and
groundwater conditions; and (iii) the use, generation, manufacture, production,
installation, maintenance, removal, transportation, storage, spill, or release
of any Hazardous Substance), now in effect or which may hereafter come into
effect. Lessee shall, within five (5) days after receipt of Lessor's written
request, provide Lessor with copies of all documents and information, including,
but not limited to, permits, registrations, manifests, applications, reports and
certificates, evidencing Lessee's compliance with any Applicable Requirements
specified by Lessor, and shall immediately upon receipt, notify Lessor in
writing (with copies of any documents involved) of any threatened or actual
claim, notice, citation, warning, complaint or report pertaining to or involving
failure by Lessee or the Premises to comply with any Applicable Requirements.

     6.4 INSPECTION; COMPLIANCE WITH LAW. Lessor, Lessor's agents, employees,
contractors and designated representatives, and the holders of any mortgages,
deeds of trust or ground leases on the Premises ("LENDERS") shall have the right
to enter the Premises at any time in the case of an emergency, and otherwise at
reasonable times, for the purpose of inspecting the condition of the Premises
and for verifying compliance by Lessee with this Lease and all Applicable
Requirements (as defined in Paragraph 6.3), and Lessor shall be entitled to
employ experts and/or consultants in connection therewith to advise Lessor with
respect to Lessee's activities, including but not limited to Lessee's
installation, operation, use, monitoring, maintenance, or removal of any
Hazardous Substance on or from the Premises. The costs and expenses of any such
inspections shall be paid by the party requesting same, unless a Default or
Breach of this Lease by Lessee or a violation of Applicable Requirements or a
contamination, caused or materially contributed to by Lessee, is found to exist
or to be imminent, or unless the inspection is requested or ordered by a
governmental authority as the result of any such existing or imminent violation
or contamination. In such case, Lessee shall upon request reimburse Lessor or
Lessor's Lender, as the case may be, for the costs and expenses of such
inspections.

  7. MAINTENANCE, REPAIRS, UTILITY INSTALLATIONS, TRADE FIXTURES AND
     ALTERATIONS.

     7.1 LESSEE'S OBLIGATIONS.

              (a) Subject to the provisions of Paragraphs 2.2 (Condition), 2.3
(Compliance with Covenants, Restrictions and Building Code), 7.2 (Lessor's
Obligations), 9 (Damage or Destruction), and 14 (Condemnation), Lessee shall, at
Lessee's sole cost and expense and at all times, keep the Premises and every
part thereof in good order, condition and repair (whether or not such portion of
the Premises requiring repair, or the means of repairing the same, are
reasonably or readily accessible to Lessee, and whether or not the need for such
repairs occurs as a result of Lessee's use, any prior use, the elements or the
age of such portion of the Premises), including, without limiting the generality
of the foregoing, all equipment or facilities specifically serving the Premises,
such as plumbing, heating, air conditioning, ventilating, electrical, lighting
facilities, boilers, fired or unfired pressure vessels, fire hose connections if
within the Premises, fixtures, interior walls, interior surfaces of exterior
walls, ceilings, floors, windows, doors, plate glass, and skylights, but
excluding any items which are the responsibility of Lessor pursuant to Paragraph
7.2 below. Lessee, in keeping the Premises in good order, condition and repair,
shall exercise and perform good maintenance practices. Lessee's obligations
shall include restorations, replacements or renewals when necessary to keep the
Premises and all improvements thereon or a part thereof in good order, condition
and state of repair.

              (b) Lessee shall, at Lessee's sole cost and expense, procure and
maintain a contract, with copies to Lessor, in customary form and substance for
and with a contractor specializing and experienced in the inspection,
maintenance and service of the heating, air conditioning and ventilation system
for the Premises. However, Lessor reserves the right, upon notice to Lessee, to
procure and maintain the contract for the heating, air conditioning and
ventilating systems, and if Lessor so elects, Lessee shall reimburse Lessor,
upon demand, for the cost thereof.

              (c) If Lessee fails to perform Lessee's obligations under this
Paragraph 7.1, Lessor may enter upon the Premises after ten (10) days' prior
written notice to Lessee (except in the case of an emergency, in which case no
notice shall be required), perform such obligations on Lessee's behalf, and put
the Premises in good order, condition and repair, in accordance with Paragraph
13.2 below.

     7.2 LESSOR'S OBLIGATIONS. Subject to the provisions of Paragraphs 2.2
(Condition), 2.3 (Compliance with Covenants, Restrictions and Building Code),
4.2 (Common Area Operating Expenses), 6 (Use), 7.1 (Lessee's Obligations), 9
(Damage or Destruction) and 14 (Condemnation), Lessor, subject to reimbursement
pursuant to Paragraph 4.2, shall keep in good order, condition and repair the
foundations, exterior walls, structural condition of interior bearing walls,
exterior roof, fire sprinkler and/or standpipe and hose (if located in the
Common Areas) or other automatic fire extinguishing system including fire alarm
and/or smoke detection systems and equipment, fire hydrants, parking lots,
walkways, parkways, driveways, landscaping, fences, signs and utility systems
serving the Common Areas and all parts thereof, as well as providing the
services for which there is a Common Area Operating Expense pursuant to
Paragraph 4.2. Lessor shall not be obligated to paint the exterior or interior
surfaces of exterior walls nor shall Lessor be obligated to maintain, repair or
replace windows, doors or plate glass of the Premises. Lessee expressly waives
the benefit of any statute now or hereafter in effect which would otherwise
afford Lessee the right to make repairs at Lessor's expense or to terminate this
Lease because of Lessor's failure to keep the Building, Industrial Center or
Common Areas in good order, condition and repair.

       7.3    UTILITY INSTALLATIONS, TRADE FIXTURES, ALTERATIONS.

              (a) DEFINITIONS; CONSENT REQUIRED. The term "UTILITY
INSTALLATIONS" is used in this Lease to refer to all air lines, power panels,
electrical distribution, security, fire protection systems, communications
systems, lighting fixtures, heating, ventilating and air conditioning equipment,
plumbing, and fencing in, on or about the Premises. The term "TRADE FIXTURES"
shall mean Lessee's machinery and equipment which can be removed without doing
material damage to the Premises. The term "ALTERATIONS" shall mean any
modification of the improvements on the Premises which are provided by Lessor
under the terms of this Lease, other than Utility Installations or Trade
Fixtures. "LESSEE-OWNED ALTERATIONS AND/OR UTILITY INSTALLATIONS" are defined as
Alterations and/or Utility Installations made by Lessee that are not yet owned
by Lessor pursuant to Paragraph 7.4(a). Lessee shall not make nor cause to be
made any Alterations or Utility Installations in, on, under or about the
Premises without Lessor's prior written consent. Lessee may, however, make
non-structural Utility Installations to the interior of the Premises (excluding
the roof) without Lessor's consent but upon notice to Lessor, so long as they
are not visible from the outside of the Premises, do not involve puncturing,
relocating or removing the roof or any existing walls, or changing or
interfering with the fire sprinkler or fire detection systems and the cumulative
cost thereof during the term of this Lease as extended does not exceed
$2,500.00.

              (b) CONSENT. Any Alterations or Utility Installations that Lessee
shall desire to make and which require the consent of the Lessor shall be
presented to Lessor in written form with detailed plans. All consents given by
Lessor, whether by virtue of Paragraph 7.3(a) or by subsequent specific consent,
shall be deemed conditioned upon: (i) Lessee's acquiring all applicable permits
required by governmental authorities; (ii) the furnishing of copies of such
permits together with a copy of the plans and specifications for the Alteration
or Utility Installation to Lessor prior to commencement of the work thereon; and
(iii) the compliance by Lessee with all conditions of said permits in a prompt
and expeditious manner. Any Alterations or Utility Installations by Lessee
during the term of this Lease shall be done in a good and workmanlike manner,
with good and sufficient materials, and be in compliance with all Applicable
Requirements. Lessee shall promptly upon completion thereof furnish Lessor with
as-built plans and specifications therefor. Lessor may (but without obligation
to do so) condition its consent to any requested Alteration or Utility
Installation that costs $2,500.00 or more upon Lessee's providing Lessor with a
lien and completion bond in an amount equal to one and one-half times the
estimated cost of such Alteration or Utility Installation.

              (c) LIEN PROTECTION. Lessee shall pay when due all claims for
labor or materials furnished or alleged to have been furnished to or for Lessee
at or for use on the Premises, which claims are or may be secured by any
mechanic's or materialmen's lien against the Premises or any interest therein.
Lessee shall give Lessor not less than ten (10) days' notice prior to the
commencement of any work in, on, or about the Premises, and Lessor shall have
the right to post notices of non-responsibility in or on the Premises as
provided by law. If Lessee shall, in good faith, contest the validity of any
such lien, claim or demand, then Lessee shall, at its sole expense, defend and
protect itself, Lessor and the Premises against the same and shall pay and
satisfy any such adverse judgment that may be rendered thereon before the
enforcement thereof against the Lessor or the Premises. If Lessor shall require,
Lessee shall furnish to Lessor a surety bond satisfactory to Lessor, in an
amount equal to one and one-half times the amount of such contested lien claim
or demand, indemnifying Lessor against liability for the same, as required by
law for the holding of the Premises free from the effect of such lien or claim.
In addition, Lessor may require Lessee to pay Lessor's attorneys' fees and costs
in participating in such action if Lessor shall decide it is to its best
interest to do so.

       7.4    OWNERSHIP, REMOVAL, SURRENDER, AND RESTORATION.

              (a) OWNERSHIP. Subject to Lessor's right to require their removal
and to cause Lessee to become the owner thereof as hereinafter provided in this
Paragraph 7.4, all Alterations and Utility Installations made to the Premises by
Lessee shall be the property of and owned by Lessee, but considered a part of
the Premises. Lessor may, at any time and at its option, elect in writing to
Lessee to be the owner of all or any specified part of the Lessee-Owned
Alterations and Utility Installations. Unless otherwise instructed per
Subparagraph 7.4(b) hereof, all Lessee-Owned Alterations and Utility
Installations shall, at the expiration or earlier termination of this Lease,
become the property of Lessor and remain upon the Premises and be surrendered
with the Premises by Lessee.

                                  PAGE 4 OF 13
<PAGE>   7

              (b) REMOVAL. Unless otherwise agreed in writing, Lessor may
require that any or all Lessee-Owned Alterations or Utility Installations be
removed by the expiration or earlier termination of this Lease, notwithstanding
that their installation may have been consented to by Lessor. Lessor may require
the removal at any time of all or any part of any Alterations or Utility
Installations made without the required consent of Lessor.

              (c) SURRENDER/RESTORATION. Lessee shall surrender the Premises by
the end of the last day of the Lease term or any earlier termination date, clean
and free of debris and in good operating order, condition and state of repair,
ordinary wear and tear excepted. Ordinary wear and tear shall not include any
damage or deterioration that would have been prevented by good maintenance
practice or by Lessee performing all of its obligations under this Lease. Except
as otherwise agreed or specified herein, the Premises, as surrendered, shall
include the Alterations and Utility Installations. The obligation of Lessee
shall include the repair of any damage occasioned by the installation,
maintenance or removal of Lessee's Trade Fixtures, furnishings, equipment, and
Lessee-Owned Alterations and Utility Installations, as well as the removal of
any storage tank installed by or for Lessee, and the removal, replacement, or
remediation of any soil, material or ground water contaminated by Lessee, all as
may then be required by Applicable Requirements and/or good practice. Lessee's
Trade Fixtures shall remain the property of Lessee and shall be removed by
Lessee subject to its obligation to repair and restore the Premises per this
Lease.

8.   INSURANCE; INDEMNITY.

     8.1 PAYMENT OF PREMIUMS. The cost of the premiums for the insurance
policies maintained by Lessor under this Paragraph 8 shall be a Common Area
Operating Expense pursuant to Paragraph 4.2 hereof. Premiums for policy periods
commencing prior to, or extending beyond, the term of this Lease shall be
prorated to coincide with the corresponding Commencement Date or Expiration
Date.

     8.2 LIABILITY INSURANCE.

              (a) CARRIED BY LESSEE. Lessee shall obtain and keep in force
during the term of this Lease a Commercial General Liability policy of insurance
protecting Lessee, Lessor and any Lender(s) whose names have been provided to
Lessee in writing (as additional insureds) against claims for bodily injury,
personal injury and property damage based upon, involving or arising out of the
ownership, use, occupancy or maintenance of the Premises and all areas
appurtenant thereto. Such insurance shall be on an occurrence basis providing
single limit coverage in an amount not less than $1,000,000 per occurrence with
an "Additional Insured-Managers or Lessors of Premises" endorsement and contain
the "Amendment of the Pollution Exclusion" endorsement for damage caused by
heat, smoke or fumes from a hostile fire. The policy shall not contain any
intra-insured exclusions as between insured persons or organizations, but shall
include coverage for liability assumed under this Lease as an "INSURED CONTRACT"
for the performance of Lessee's indemnity obligations under this Lease. The
limits of said insurance required by this Lease or as carried by Lessee shall
not, however, limit the liability of Lessee nor relieve Lessee of any obligation
hereunder. All insurance to be carried by Lessee shall be primary to and not
contributory with any similar insurance carried by Lessor, whose insurance shall
be considered excess insurance only.

              (b) CARRIED BY LESSOR. Lessor shall also maintain liability
insurance described in Paragraph 8.2(a) above, in addition to and not in lieu
of, the insurance required to be maintained by Lessee. Lessee shall not be named
as an additional insured therein.

     8.3 PROPERTY INSURANCE - BUILDING, IMPROVEMENTS AND RENTAL VALUE.

              (a) BUILDING AND IMPROVEMENTS. Lessor shall obtain and keep in
force during the term of this Lease a policy or policies in the name of Lessor,
with loss payable to Lessor and to any Lender(s), insuring against loss or
damage to the Premises. Such insurance shall be for full replacement cost, as
the same shall exist from time to time, or the amount required by any Lender(s),
but in no event more than the commercially reasonable and available insurable
value thereof if, by reason of the unique nature or age of the improvements
involved, such latter amount is less than full replacement cost. Lessee-Owned
Alterations and Utility Installations, Trade Fixtures and Lessee's personal
property shall be insured by Lessee pursuant to Paragraph 8.4. If the coverage
is available and commercially appropriate, Lessor's policy or policies shall
insure against all risks of direct physical loss or damage (except the perils of
flood and/or earthquake unless required by a Lender), including coverage for any
additional costs resulting from debris removal and reasonable amounts of
coverage for the enforcement of any ordinance or law regulating the
reconstruction or replacement of any undamaged sections of the Building required
to be demolished or removed by reason of the enforcement of any building,
zoning, safety or land use laws as the result of a covered loss, but not
including plate glass insurance. Said policy or policies shall also contain an
agreed valuation provision in lieu of any co-insurance clause, waiver of
subrogation, and inflation guard protection causing an increase in the annual
property insurance coverage amount by a factor of not less than the adjusted
U.S. Department of Labor Consumer Price Index for All Urban Consumers for the
city nearest to where the Premises are located.

              (b) RENTAL VALUE. Lessor shall also obtain and keep in force
during the term of this Lease a policy or policies in the name of Lessor, with
loss payable to Lessor and any Lender(s), insuring the loss of the full rental
and other charges payable by all lessees of the Building to Lessor for one year
(including all Real Property Taxes, insurance costs, all Common Area Operating
Expenses and any scheduled rental increases). Said insurance may provide that in
the event the Lease is terminated by reason of an insured loss, the period of
indemnity for such coverage shall be extended beyond the date of the completion
of repairs or replacement of the Premises, to provide for one full year's loss
of rental revenues from the date of any such loss. Said insurance shall contain
an agreed valuation provision in lieu of any co-insurance clause, and the amount
of coverage shall be adjusted annually to reflect the projected rental income,
Real Property Taxes, insurance premium costs and other expenses, if any,
otherwise payable, for the next 12-month period. Common Area Operating Expenses
shall include any deductible amount in the event of such loss.

              (c) ADJACENT PREMISES. Lessee shall pay for any increase in the
premiums for the property insurance of the Building and for the Common Areas or
other buildings in the Industrial Center if said increase is caused by Lessee's
acts, omissions, use or occupancy of the Premises.

              (d) LESSEE'S IMPROVEMENTS. Since Lessor is the Insuring Party,
Lessor shall not be required to insure Lessee-Owned Alterations and Utility
Installations unless the item in question has become the property of Lessor
under the terms of this Lease.

     8.4 LESSEE'S PROPERTY INSURANCE. Subject to the requirements of Paragraph
8.5, Lessee at its cost shall either by separate policy or, at Lessor's option,
by endorsement to a policy already carried, maintain insurance coverage on all
of Lessee's personal property, Trade Fixtures and Lessee-Owned Alterations and
Utility Installations in, on, or about the Premises similar in coverage to that
carried by Lessor as the Insuring Party under Paragraph 8.3(a). Such insurance
shall be full replacement cost coverage with a deductible not to exceed $1,000
per occurrence. The proceeds from any such insurance shall be used by Lessee for
the replacement of personal property and the restoration of Trade Fixtures and
Lessee-Owned Alterations and Utility Installations. Upon request from Lessor,
Lessee shall provide Lessor with written evidence that such insurance is in
force.

     8.5 INSURANCE POLICIES. Insurance required hereunder shall be in companies
duly licensed to transact business in the state where the Premises are located,
and maintaining during the policy term a "General Policyholders Rating" of at
least B+, V, or such other rating as may be required by a Lender, as set forth
in the most current issue of "Best's Insurance Guide." Lessee shall not do or
permit to be done anything which shall invalidate the insurance policies
referred to in this Paragraph 8. Lessee shall cause to be delivered to Lessor,
within seven (7) days after the earlier of the Early Possession Date or the
Commencement Date, certified copies of, or certificates evidencing the existence
and amounts of, the insurance required under Paragraph 8.2(a) and 8.4. No such
policy shall be cancelable or subject to modification except after thirty (30)
days' prior written notice to Lessor. Lessee shall, at least thirty (30) days
prior to the expiration of such policies, furnish Lessor with evidence of
renewals or "insurance binders" evidencing renewal thereof, or Lessor may order
such insurance and charge the cost thereof to Lessee, which amount shall be
payable by Lessee to Lessor upon demand.

     8.6 WAIVER OF SUBROGATION. Without affecting any other rights or remedies,
Lessee and Lessor each hereby release and relieve the other, and waive their
entire right to recover damages (whether in contract or in tort) against the
other, for loss or damage to their property arising out of or incident to the
perils required to be insured against under Paragraph 8. The effect of such
releases and waivers of the right to recover damages shall not be limited by the
amount of insurance carried or required, or by any deductibles applicable
thereto. Lessor and Lessee agree to have their respective insurance companies
issuing property damage insurance waive any right to subrogation that such
companies may have against Lessor or Lessee, as the case may be, so long as the
insurance is not invalidated thereby.

     8.7 INDEMNITY. Except for Lessor's negligence and/or breach of express
warranties, Lessee shall indemnify, protect, defend and hold harmless the
Premises, Lessor and its agents, Lessor's master or ground lessor, partners and
Lenders, from and against any and all claims, loss of rents and/or damages,
costs, liens, judgments, penalties, loss of permits, attorneys' and consultants'
fees, expenses and/or liabilities arising out of, involving, or in connection
with, the occupancy of the Premises by Lessee, the conduct of Lessee's business,
any act, omission or neglect of Lessee, its agents, contractors, employees or
invitees, and out of any Default or Breach by Lessee in the performance in a
timely manner of any obligation on Lessee's part to be performed under this
Lease. The foregoing shall include, but not be limited to, the defense or
pursuit of any claim or any action or proceeding involved therein, and whether
or not (in the case of claims made against Lessor) litigated and/or reduced to
judgment. In case any action or proceeding be brought against Lessor by reason
of any of the foregoing matters, Lessee, upon notice from Lessor, shall defend
the same at Lessee's expense by counsel reasonably satisfactory to Lessor and
Lessor shall cooperate with Lessee in such defense. Lessor need not have first
paid any such claim in order to be so indemnified.

     8.8 EXEMPTION OF LESSOR FROM LIABILITY. Lessor shall not be liable for
injury or damage to the person or goods, wares, merchandise or other

                                  PAGE 5 OF 13
<PAGE>   8

property of Lessee, Lessee's employees, contractors, invitees, customers, or any
other person in or about the Premises, whether such damage or injury is caused
by or results from fire, steam, electricity, gas, water or rain, or from the
breakage, leakage, obstruction or other defects of pipes, fire sprinklers,
wires, appliances, plumbing, air conditioning or lighting fixtures, or from any
other cause, whether said injury or damage results from conditions arising upon
the Premises or upon other portions of the Building of which the Premises are a
part, from other sources or places, and regardless of whether the cause of such
damage or injury or the means of repairing the same is accessible or not. Lessor
shall not be liable for any damages arising from any act or neglect of any other
lessee of Lessor nor from the failure by Lessor to enforce the provisions of any
other lease in the Industrial Center. Notwithstanding Lessor's negligence or
breach of this Lease, Lessor shall under no circumstances be liable for injury
to Lessee's business or for any loss of income or profit therefrom.

  9.   DAMAGE OR DESTRUCTION.

     9.1 DEFINITIONS.

              (a) "PREMISES PARTIAL DAMAGE" shall mean damage or destruction to
the Premises, other than Lessee-Owned Alterations and Utility Installations, the
repair cost of which damage or destruction is less than fifty percent (50%) of
the then Replacement Cost (as defined in Paragraph 9.1(d)) of the Premises
(excluding Lessee-Owned Alterations and Utility Installations and Trade
Fixtures) immediately prior to such damage or destruction.

              (b) "PREMISES TOTAL DESTRUCTION" shall mean damage or destruction
to the Premises, other than Lessee-Owned Alterations and Utility Installations,
the repair cost of which damage or destruction is fifty percent (50%) or more of
the then Replacement Cost of the Premises (excluding Lessee-Owned Alterations
and Utility Installations and Trade Fixtures) immediately prior to such damage
or destruction. In addition, damage or destruction to the Building, other than
Lessee-Owned Alterations and Utility Installations and Trade Fixtures of any
lessees of the Building, the cost of which damage or destruction is fifty
percent (50%) or more of the then Replacement Cost (excluding Lessee-Owned
Alterations and Utility Installations and Trade Fixtures of any lessees of the
Building) of the Building shall, at the option of Lessor, be deemed to be
Premises Total Destruction.

              (c) "INSURED LOSS" shall mean damage or destruction to the
Premises, other than Lessee-Owned Alterations and Utility Installations and
Trade Fixtures, which was caused by an event required to be covered by the
insurance described in Paragraph 8.3(a) irrespective of any deductible amounts
or coverage limits involved.

              (d) "REPLACEMENT COST" shall mean the cost to repair or rebuild
the improvements owned by Lessor at the time of the occurrence to their
condition existing immediately prior thereto, including demolition, debris
removal and upgrading required by the operation of applicable building codes,
ordinances or laws, and without deduction for depreciation.

              (e) "HAZARDOUS SUBSTANCE CONDITION" shall mean the occurrence or
discovery of a condition involving the presence of, or a contamination by, a
Hazardous Substance as defined in Paragraph 6.2(a), in, on, or under the
Premises.

     9.2 PREMISES PARTIAL DAMAGE - INSURED LOSS. If Premises Partial Damage
that is an Insured Loss occurs, then Lessor shall, at Lessor's expense, repair
such damage (but not Lessee's Trade Fixtures or Lessee-Owned Alterations and
Utility Installations) as soon as reasonably possible and this Lease shall
continue in full force and effect. In the event, however, that there is a
shortage of insurance proceeds and such shortage is due to the fact that, by
reason of the unique nature of the improvements in the Premises, full
replacement cost insurance coverage was not commercially reasonable and
available, Lessor shall have no obligation to pay for the shortage in insurance
proceeds or to fully restore the unique aspects of the Premises unless Lessee
provides Lessor with the funds to cover same, or adequate assurance thereof,
within ten (10) days following receipt of written notice of such shortage and
request therefor. If Lessor receives said funds or adequate assurance thereof
within said ten (10) day period, Lessor shall complete them as soon as
reasonably possible and this Lease shall remain in full force and effect. If
Lessor does not receive such funds or assurance within said period, Lessor may
nevertheless elect by written notice to Lessee within ten (10) days thereafter
to make such restoration and repair as is commercially reasonable with Lessor
paying any shortage in proceeds, in which case this Lease shall remain in full
force and effect. If Lessor does not receive such funds or assurance within such
ten (10) day period, and if Lessor does not so elect to restore and repair, then
this Lease shall terminate sixty (60) days following the occurrence of the
damage or destruction. Unless otherwise agreed, Lessee shall in no event have
any right to reimbursement from Lessor for any funds contributed by Lessee to
repair any such damage or destruction. Premises Partial Damage due to flood or
earthquake shall be subject to Paragraph 9.3 rather than Paragraph 9.2,
notwithstanding that there may be some insurance coverage, but the net proceeds
of any such insurance shall be made available for the repairs if made by either
Party.

     9.3 PARTIAL DAMAGE - UNINSURED LOSS. If Premises Partial Damage that is
not an Insured Loss occurs, unless caused by a negligent or willful act of
Lessee (in which event Lessee shall make the repairs at Lessee's expense and
this Lease shall continue in full force and effect), Lessor may, at Lessor's
option, either (i) repair such damage as soon as reasonably possible at Lessor's
expense, in which event this Lease shall continue in full force and effect, or
(ii) give written notice to Lessee within thirty (30) days after receipt by
Lessor of knowledge of the occurrence of such damage of Lessor's desire to
terminate this Lease as of the date sixty (60) days following the date of such
notice. In the event Lessor elects to give such notice of Lessor's intention to
terminate this Lease, Lessee shall have the right within ten (10) days after the
receipt of such notice to give written notice to Lessor of Lessee's commitment
to pay for the repair of such damage totally at Lessee's expense and without
reimbursement from Lessor. Lessee shall provide Lessor with the required funds
or satisfactory assurance thereof within thirty (30) days following such
commitment from Lessee. In such event this Lease shall continue in full force
and effect, and Lessor shall proceed to make such repairs as soon as reasonably
possible after the required funds are available. If Lessee does not give such
notice and provide the funds or assurance thereof within the times specified
above, this Lease shall terminate as of the date specified in Lessor's notice of
termination.

     9.4 TOTAL DESTRUCTION. Notwithstanding any other provision hereof, if
Premises Total Destruction occurs (including any destruction required by any
authorized public authority), this Lease shall terminate sixty (60) days
following the date of such Premises Total Destruction, whether or not the damage
or destruction is an Insured Loss or was caused by a negligent or willful act of
Lessee. In the event, however, that the damage or destruction was caused by
Lessee, Lessor shall have the right to recover Lessor's damages from Lessee
except as released and waived in Paragraph 8.6.

     9.5 DAMAGE NEAR END OF TERM. If at any time during the last six (6) months
of the term of this Lease there is damage for which the cost to repair exceeds
one month's Base Rent, whether or not an Insured Loss, Lessor may, at Lessor's
option, terminate this Lease effective sixty (60) days following the date of
occurrence of such damage by giving written notice to Lessee of Lessor's
election to do so within thirty (30) days after the date of occurrence of such
damage. Provided, however, if Lessee at that time has an exercisable option to
extend this Lease or to purchase the Premises, then Lessee may preserve this
Lease by (a) exercising such option, and (b) providing Lessor with any shortage
in insurance proceeds (or adequate assurance thereof) needed to make the repairs
on or before the earlier of (i) the date which is ten (10) days after Lessee's
receipt of Lessor's written notice purporting to terminate this Lease, or (ii)
the day prior to the date upon which such option expires. If Lessee duly
exercises such option during such period and provides Lessor with funds (or
adequate assurance thereof) to cover any shortage in insurance proceeds, Lessor
shall, at Lessor's expense, repair such damage as soon as reasonably possible
and this Lease shall continue in full force and effect. If Lessee fails to
exercise such option and provide such funds or assurance during such period,
then this Lease shall terminate as of the date set forth in the first sentence
of this Paragraph 9.5.

     9.6 ABATEMENT OF RENT; LESSEE'S REMEDIES.

              (a) In the event of (i) Premises Partial Damage or (ii) Hazardous
Substance Condition for which Lessee is not legally responsible, the Base Rent,
Common Area Operating Expenses and other charges, if any, payable by Lessee
hereunder for the period during which such damage or condition, its repair,
remediation or restoration continues, shall be abated in proportion to the
degree to which Lessee's use of the Premises is impaired, but not in excess of
proceeds from insurance required to be carried under Paragraph 8.3(b). Except
for abatement of Base Rent, Common Area Operating Expenses and other charges, if
any, as aforesaid, all other obligations of Lessee hereunder shall be performed
by Lessee, and Lessee shall have no claim against Lessor for any damage suffered
by reason of any such damage, destruction, repair, remediation or restoration.

              (b) If Lessor shall be obligated to repair or restore the Premises
under the provisions of this Paragraph 9 and shall not commence, in a
substantial and meaningful way, the repair or restoration of the Premises within
ninety (90) days after such obligation shall accrue, Lessee may, at any time
prior to the commencement of such repair or restoration, give written notice to
Lessor and to any Lenders of which Lessee has actual notice of Lessee's election
to terminate this Lease on a date not less than sixty (60) days following the
giving of such notice. If Lessee gives such notice to Lessor and such Lenders
and such repair or restoration is not commenced within thirty (30) days after
receipt of such notice, this Lease shall terminate as of the date specified in
said notice. If Lessor or a Lender commences the repair or restoration of the
Premises within thirty (30) days after the receipt of such notice, this Lease
shall continue in full force and effect. "COMMENCE" as used in this Paragraph
9.6 shall mean either the unconditional authorization of the preparation of the
required plans, or the beginning of the actual work on the Premises, whichever
occurs first.

     9.7 HAZARDOUS SUBSTANCE CONDITIONS. If a Hazardous Substance Condition
occurs, unless Lessee is legally responsible therefor (in which case Lessee
shall make the investigation and remediation thereof required by Applicable
Requirements and this Lease shall continue in full force and effect, but subject
to Lessor's rights under Paragraph 6.2(c) and Paragraph 13), Lessor may, at
Lessor's option, either (i) investigate and remediate such Hazardous

                                  PAGE 6 OF 13
<PAGE>   9

Substance Condition, if required, as soon as reasonably possible at Lessor's
expense, in which event this Lease shall continue in full force and effect, or
(ii) if the estimated cost to investigate and remediate such condition exceeds
twelve (12) times the then monthly Base Rent or $100,000, whichever is greater,
give written notice to Lessee within thirty (30) days after receipt by Lessor of
knowledge of the occurrence of such Hazardous Substance Condition of Lessor's
desire to terminate this Lease as of the date sixty (60) days following the date
of such notice. In the event Lessor elects to give such notice of Lessor's
intention to terminate this Lease, Lessee shall have the right within ten (10)
days after the receipt of such notice to give written notice to Lessor of
Lessee's commitment to pay for the excess costs of (a) investigation and
remediation of such Hazardous Substance Condition to the extent required by
Applicable Requirements, over (b) an amount equal to twelve (12) times the then
monthly Base Rent or $100,000, whichever is greater. Lessee shall provide Lessor
with the funds required of Lessee or satisfactory assurance thereof within
thirty (30) days following said commitment by Lessee. In such event this Lease
shall continue in full force and effect, and Lessor shall proceed to make such
investigation and remediation as soon as reasonably possible after the required
funds are available. If Lessee does not give such notice and provide the
required funds or assurance thereof within the time period specified above, this
Lease shall terminate as of the date specified in Lessor's notice of
termination.

     9.8 TERMINATION - ADVANCE PAYMENTS. Upon termination of this Lease pursuant
to this Paragraph 9, Lessor shall return to Lessee any advance payment made by
Lessee to Lessor and so much of Lessee's Security Deposit as has not been, or is
not then required to be, used by Lessor under the terms of this Lease.

     9.9 WAIVER OF STATUTES. Lessor and Lessee agree that the terms of this
Lease shall govern the effect of any damage to or destruction of the Premises
and the Building with respect to the termination of this Lease and hereby waive
the provisions of any present or future statute to the extent it is inconsistent
herewith.

10. REAL PROPERTY TAXES.

     10.1 PAYMENT OF TAXES. Lessor shall pay the Real Property Taxes, as defined
in Paragraph 10.2, applicable to the Industrial Center, and except as otherwise
provided in Paragraph 10.3, any such amounts shall be included in the
calculation of Common Area Operating Expenses in accordance with the provisions
of Paragraph 4.2.

     10.2 REAL PROPERTY TAX DEFINITION. As used herein, the term "REAL PROPERTY
TAXES" shall include any form of real estate tax or assessment, general,
special, ordinary or extraordinary, and any license fee, commercial rental tax,
improvement bond or bonds, levy or tax (other than inheritance, personal income
or estate taxes) imposed upon the Industrial Center by any authority having the
direct or indirect power to tax, including any city, state or federal
government, or any school, agricultural, sanitary, fire, street, drainage, or
other improvement district thereof, levied against any legal or equitable
interest of Lessor in the Industrial Center or any portion thereof, Lessor's
right to rent or other income therefrom, and/or Lessor's business of leasing the
Premises. The term "REAL PROPERTY TAXES" shall also include any tax, fee, levy,
assessment or charge, or any increase therein, imposed by reason of events
occurring, or changes in Applicable Law taking effect, during the term of this
Lease, including, but not limited to, a change in the ownership of the
Industrial Center or in the improvements thereon, the execution of this Lease,
or any modification, amendment or transfer thereof, and whether or not
contemplated by the Parties. In calculating Real Property Taxes for any calendar
year, the Real Property Taxes for any real estate tax year shall be included in
the calculation of Real Property Taxes for such calendar year based upon the
number of days which such calendar year and tax year have in common.

     10.3 ADDITIONAL IMPROVEMENTS. Common Area Operating Expenses shall not
include Real Property Taxes specified in the tax assessor's records and work
sheets as being caused by additional improvements placed upon the Industrial
Center by other lessees or by Lessor for the exclusive enjoyment of such other
lessees. Notwithstanding Paragraph 10.1 hereof, Lessee shall, however, pay to
Lessor at the time Common Area Operating Expenses are payable under Paragraph
4.2, the entirety of any increase in Real Property Taxes if assessed solely by
reason of Alterations, Trade Fixtures or Utility Installations placed upon the
Premises by Lessee or at Lessee's request.

     10.4 JOINT ASSESSMENT. If the Building is not separately assessed, Real
Property Taxes allocated to the Building shall be an equitable proportion of the
Real Property Taxes for all of the land and improvements included within the tax
parcel assessed, such proportion to be determined by Lessor from the respective
valuations assigned in the assessor's work sheets or such other information as
may be reasonably available. Lessor's reasonable determination thereof, in good
faith, shall be conclusive.

     10.5 LESSEE'S PROPERTY TAXES. Lessee shall pay prior to delinquency all
taxes assessed against and levied upon Lessee-Owned Alterations and Utility
Installations, Trade Fixtures, furnishings, equipment and all personal property
of Lessee contained in the Premises or stored within the Industrial Center. When
possible, Lessee shall cause its Lessee-Owned Alterations and Utility
Installations, Trade Fixtures, furnishings, equipment and all other personal
property to be assessed and billed separately from the real property of Lessor.
If any of Lessee's said property shall be assessed with Lessor's real property,
Lessee shall pay Lessor the taxes attributable to Lessee's property within ten
(10) days after receipt of a written statement setting forth the taxes
applicable to Lessee's property.

11. UTILITIES. Lessee shall pay directly for all utilities and services supplied
to the Premises, including, but not limited to, electricity, telephone,
security, gas and cleaning of the Premises, together with any taxes thereon. If
any such utilities or services are not separately metered to the Premises or
separately billed to the Premises, Lessee shall pay to Lessor a reasonable
proportion to be determined by Lessor of all such charges jointly metered or
billed with other premises in the Building, in the manner and within the time
periods set forth in Paragraph 4.2(d).

12. ASSIGNMENT AND SUBLETTING.

     12.1 LESSOR'S CONSENT REQUIRED.

              (a) Lessee shall not voluntarily or by operation of law assign,
transfer, mortgage or otherwise transfer or encumber (collectively, "assign") or
sublet all or any part of Lessee's interest in this Lease or in the Premises
without Lessor's prior written consent given under and subject to the terms of
Paragraph 36.

              (b) A change in the control of Lessee shall constitute an
assignment requiring Lessor's consent. The transfer, on a cumulative basis, of
twenty-five percent (25%) or more of the voting control of Lessee shall
constitute a change in control for this purpose.

              (c) The involvement of Lessee or its assets in any transaction, or
series of transactions (by way of merger, sale, acquisition, financing,
refinancing, transfer, leveraged buy-out or otherwise), whether or not a formal
assignment or hypothecation of this Lease or Lessee's assets occurs, which
results or will result in a reduction of the Net Worth of Lessee, as hereinafter
defined, by an amount equal to or greater than twenty-five percent (25%) of such
Net Worth of Lessee as it was represented to Lessor at the time of full
execution and delivery of this Lease or at the time of the most recent
assignment to which Lessor has consented, or as it exists immediately prior to
said transaction or transactions constituting such reduction, at whichever time
said Net Worth of Lessee was or is greater, shall be considered an assignment of
this Lease by Lessee to which Lessor may reasonably withhold its consent. "NET
WORTH OF LESSEE" for purposes of this Lease shall be the net worth of Lessee
(excluding any Guarantors) established under generally accepted accounting
principles consistently applied.

              (d) An assignment or subletting of Lessee's interest in this Lease
without Lessor's specific prior written consent shall, at Lessor's option, be a
Default curable after notice per Paragraph 13.1, or a non-curable Breach without
the necessity of any notice and grace period. If Lessor elects to treat such
unconsented to assignment or subletting as a non-curable Breach, Lessor shall
have the right to either: (i) terminate this Lease, or (ii) upon thirty (30)
days' written notice ("LESSOR'S NOTICE"), increase the monthly Base Rent for the
Premises to the greater of the then fair market rental value of the Premises, as
reasonably determined by Lessor, or one hundred ten percent (110%) of the Base
Rent then in effect. Pending determination of the new fair market rental value,
if disputed by Lessee, Lessee shall pay the amount set forth in Lessor's Notice,
with any overpayment credited against the next installment(s) of Base Rent
coming due, and any underpayment for the period retroactively to the effective
date of the adjustment being due and payable immediately upon the determination
thereof. Further, in the event of such Breach and rental adjustment, (i) the
purchase price of any option to purchase the Premises held by Lessee shall be
subject to similar adjustment to the then fair market value as reasonably
determined by Lessor (without the Lease being considered an encumbrance or any
deduction for depreciation or obsolescence, and considering the Premises at its
highest and best use and in good condition) or one hundred ten percent (110%) of
the price previously in effect, (ii) any index-oriented rental or price
adjustment formulas contained in this Lease shall be adjusted to require that
the base index be determined with reference to the index applicable to the time
of such adjustment, and (iii) any fixed rental adjustments scheduled during the
remainder of the Lease term shall be increased in the same ratio as the new
rental bears to the Base Rent in effect immediately prior the adjustment
specified in Lessor's Notice.

              (e) Lessee's remedy for any breach of this Paragraph 12.1 by
Lessor shall be limited to compensatory damages and/or injunctive relief.

     12.2 TERMS AND CONDITIONS APPLICABLE TO ASSIGNMENT AND SUBLETTING.

              (a) Regardless of Lessor's consent, any assignment or subletting
shall not (i) be effective without the express written assumption by such
assignee or sublessee of the obligations of Lessee under this Lease, (ii)
release Lessee of any obligations hereunder, nor (iii) alter the primary
liability of Lessee for the payment of Base Rent and other sums due Lessor
hereunder or for the performance of any other obligations to be performed by
Lessee under this Lease.

                                  PAGE 7 OF 13
<PAGE>   10

              (b) Lessor may accept any rent or performance of Lessee's
obligations from any person other than Lessee pending approval or disapproval of
an assignment. Neither a delay in the approval or disapproval of such assignment
nor the acceptance of any rent for performance shall constitute a waiver or
estoppel of Lessor's right to exercise its remedies for the Default or Breach by
Lessee of any of the terms, covenants or conditions of this Lease.

              (c) The consent of Lessor to any assignment or subletting shall
not constitute a consent to any subsequent assignment or subletting by Lessee or
to any subsequent or successive assignment or subletting by the assignee or
sublessee. However, Lessor may consent to subsequent sublettings and assignments
of the sublease or any amendments or modifications thereto without notifying
Lessee or anyone else liable under this Lease or the sublease and without
obtaining their consent, and such action shall not relieve such persons from
liability under this Lease or the sublease.

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

              (e) Each request for consent to an assignment or subletting shall
be in writing, accompanied by information relevant to Lessor's determination as
to the financial and operational responsibility and appropriateness of the
proposed assignee or sublessee, including, but not limited to, the intended use
and/or required modification of the Premises, if any, together with a
non-refundable deposit of $1,000 or ten percent (10%) of the monthly Base Rent
applicable to the portion of the Premises which is the subject of the proposed
assignment or sublease, whichever is greater, as reasonable consideration for
Lessor's considering and processing the request for consent. Lessee agrees to
provide Lessor with such other or additional information and/or documentation as
may be reasonably requested by Lessor.

              (f) Any assignee of, or sublessee under, this Lease shall, by
reason of accepting such assignment or entering into such sublease, be deemed,
for the benefit of Lessor, to have assumed and agreed to conform and comply with
each and every term, covenant, condition and obligation herein to be observed or
performed by Lessee during the term of said assignment or sublease, other than
such obligations as are contrary to or inconsistent with provisions of an
assignment or sublease to which Lessor has specifically consented in writing.

              (g) The occurrence of a transaction described in Paragraph 12.2(c)
shall give Lessor the right (but not the obligation) to require that the
Security Deposit be increased by an amount equal to six (6) times the then
monthly Base Rent, and Lessor may make the actual receipt by Lessor of the
Security Deposit increase a condition to Lessor's consent to such transaction.

              (h) Lessor, as a condition to giving its consent to any assignment
or subletting, may require that the amount and adjustment schedule of the rent
payable under this Lease be adjusted to what is then the market value and/or
adjustment schedule for property similar to the Premises as then constituted, as
determined by Lessor.

     12.3 ADDITIONAL TERMS AND CONDITIONS APPLICABLE TO SUBLETTING. The
following terms and conditions shall apply to any subletting by Lessee of all or
any part of the Premises and shall be deemed included in all subleases under
this Lease whether or not expressly incorporated therein:

              (a) Lessee hereby assigns and transfers to Lessor all of Lessee's
interest in all rentals and income arising from any sublease of all or a portion
of the Premises heretofore or hereafter made by Lessee, and Lessor may collect
such rent and income and apply same toward Lessee's obligations under this
Lease; provided, however, that until a Breach (as defined in Paragraph 13.1)
shall occur in the performance of Lessee's obligations under this Lease, Lessee
may, except as otherwise provided in this Lease, receive, collect and enjoy the
rents accruing under such sublease. Lessor shall not, by reason of the foregoing
provision or any other assignment of such sublease to Lessor, nor by reason of
the collection of the rents from a sublessee, be deemed liable to the sublessee
for any failure of Lessee to perform and comply with any of Lessee's obligations
to such sublessee under such Sublease. Lessee hereby irrevocably authorizes and
directs any such sublessee, upon receipt of a written notice from Lessor stating
that a Breach exists in the performance of Lessee's obligations under this
Lease, to pay to Lessor the rents and other charges due and to become due under
the sublease. Sublessee shall rely upon any such statement and request from
Lessor and shall pay such rents and other charges to Lessor without any
obligation or right to inquire as to whether such Breach exists and
notwithstanding any notice from or claim from Lessee to the contrary. Lessee
shall have no right or claim against such sublessee, or, until the Breach has
been cured, against Lessor, for any such rents and other charges so paid by said
sublessee to Lessor.

              (b) In the event of a Breach by Lessee in the performance of its
obligations under this Lease, Lessor, at its option and without any obligation
to do so, may require any sublessee to attorn to Lessor, in which event Lessor
shall undertake the obligations of the sublessor under such sublease from the
time of the exercise of said option to the expiration of such sublease;
provided, however, Lessor shall not be liable for any prepaid rents or security
deposit paid by such sublessee to such sublessor or for any other prior defaults
or breaches of such sublessor under such sublease.

              (c) Any matter or thing requiring the consent of the sublessor
under a sublease shall also require the consent of Lessor herein.

              (d) No sublessee under a sublease approved by Lessor shall further
assign or sublet all or any part of the Premises without Lessor's prior written
consent.

              (e) Lessor shall deliver a copy of any notice of Default or Breach
by Lessee to the sublessee, who shall have the right to cure the Default of
Lessee within the grace period, if any, specified in such notice. The sublessee
shall have a right of reimbursement and offset from and against Lessee for any
such Defaults cured by the sublessee.

  13.  DEFAULT; BREACH; REMEDIES.

     13.1 DEFAULT; BREACH. Lessor and Lessee agree that if an attorney is
consulted by Lessor in connection with a Lessee Default or Breach (as
hereinafter defined), $350.00 is a reasonable minimum sum per such occurrence
for legal services and costs in the preparation and service of a notice of
Default, and that Lessor may include the cost of such services and costs in said
notice as rent due and payable to cure said default. A "DEFAULT" by Lessee is
defined as a failure by Lessee to observe, comply with or perform any of the
terms, covenants, conditions or rules applicable to Lessee under this Lease. A
"BREACH" by Lessee is defined as the occurrence of any one or more of the
following Defaults, and, where a grace period for cure after notice is specified
herein, the failure by Lessee to cure such Default prior to the expiration of
the applicable grace period, and shall entitle Lessor to pursue the remedies set
forth in Paragraphs 13.2 and/or 13.3:

              (a) The vacating of the Premises without the intention to reoccupy
same, or the abandonment of the Premises.

              (b) Except as expressly otherwise provided in this Lease, the
failure by Lessee to make any payment of Base Rent, Lessee's Share of Common
Area Operating Expenses, or any other monetary payment required to be made by
Lessee hereunder as and when due, the failure by Lessee to provide Lessor with
reasonable evidence of insurance or surety bond required under this Lease, or
the failure of Lessee to fulfill any obligation under this Lease which endangers
or threatens life or property, where such failure continues for a period of
three (3) days following written notice thereof by or on behalf of Lessor to
Lessee.

              (c) Except as expressly otherwise provided in this Lease, the
failure by Lessee to provide Lessor with reasonable written evidence (in duly
executed original form, if applicable) of (i) compliance with Applicable
Requirements per Paragraph 6.3, (ii) the inspection, maintenance and service
contracts required under Paragraph 7.1(b), (iii) the rescission of an
unauthorized assignment or subletting per Paragraph 12.1, (iv) a Tenancy
Statement per Paragraphs 16 or 37, (v) the subordination or non-subordination of
this Lease per Paragraph 30, (vi) the guaranty of the performance of Lessee's
obligations under this Lease if required under Paragraphs 1.11 and 37, (vii) the
execution of any document requested under Paragraph 42 (easements), or (viii)
any other documentation or information which Lessor may reasonably require of
Lessee under the terms of this Lease, where any such failure continues for a
period of ten (10) days following written notice by or on behalf of Lessor to
Lessee.

              (d) A Default by Lessee as to the terms, covenants, conditions or
provisions of this Lease, or of the rules adopted under Paragraph 40 hereof that
are to be observed, complied with or performed by Lessee, other than those
described in Subparagraphs 13.1(a), (b) or (c), above, where such Default
continues for a period of thirty (30) days after written notice thereof by or on
behalf of Lessor to Lessee; provided, however, that if the nature of Lessee's
Default is such that more than thirty (30) days are reasonably required for its
cure, then it shall not be deemed to be a Breach of this Lease by Lessee if
Lessee commences such cure within said thirty (30) day period and thereafter
diligently prosecutes such cure to completion.

              (e) The occurrence of any of the following events: (i) the making
by Lessee of any general arrangement or assignment for the benefit of creditors;
(ii) Lessee's becoming a "debtor" as defined in 11 U.S. Code Section 101 or any
successor statute thereto (unless, in the case of a petition filed against
Lessee, the same is dismissed within sixty (60) days); (iii) the appointment of
a trustee or receiver to take possession of substantially all of Lessee's
assets located at the Premises or of Lessee's interest in this Lease, where
possession is not restored to Lessee within thirty (30) days; or (iv) the
attachment, execution or other judicial seizure of substantially all of Lessee's
assets located at the Premises or of Lessee's interest in this Lease, where such
seizure is not discharged within thirty (30) days; provided, however, in the
event that any provision of this Subparagraph 13.1(e) is contrary to any
applicable law, such provision shall be of no force or effect, and shall not
affect the validity of the remaining provisions.

              (f) The discovery by Lessor that any financial statement of Lessee
or of any Guarantor, given to Lessor by Lessee or any Guarantor, was materially
false.

              (g) If the performance of Lessee's obligations under this Lease is
guaranteed: (i) the death of a Guarantor, (ii) the termination of a Guarantor's

                                  PAGE 8 OF 13
<PAGE>   11

liability with respect to this Lease other than in accordance with the terms of
such guaranty, (iii) a Guarantor's becoming insolvent or the subject of a
bankruptcy filing, (iv) a Guarantor's refusal to honor the guaranty, or (v) a
Guarantor's breach of its guaranty obligation on an anticipatory breach basis,
and Lessee's failure, within sixty (60) days following written notice by or on
behalf of Lessor to Lessee of any such event, to provide Lessor with written
alternative assurances of security, which, when coupled with the then existing
resources of Lessee, equals or exceeds the combined financial resources of
Lessee and the Guarantors that existed at the time of execution of this Lease.

     13.2 REMEDIES. If Lessee fails to perform any affirmative duty or
obligation of Lessee under this Lease, within ten (10) days after written notice
to Lessee (or in case of an emergency, without notice), Lessor may at its option
(but without obligation to do so), perform such duty or obligation on Lessee's
behalf, including, but not limited to, the obtaining of reasonably required
bonds, insurance policies, or governmental licenses, permits or approvals. The
costs and expenses of any such performance by Lessor shall be due and payable by
Lessee to Lessor upon invoice therefor. If any check given to Lessor by Lessee
shall not be honored by the bank upon which it is drawn, Lessor, at its own
option, may require all future payments to be made under this Lease by Lessee to
be made only by cashier's check. In the event of a Breach of this Lease by
Lessee (as defined in Paragraph 13.1), with or without further notice or demand,
and without limiting Lessor in the exercise of any right or remedy which Lessor
may have by reason of such Breach, Lessor may:

              (a) Terminate Lessee's right to possession of the Premises by any
lawful means, in which case this Lease and the term hereof shall terminate and
Lessee shall immediately surrender possession of the Premises to Lessor. In such
event Lessor shall be entitled to recover from Lessee: (i) the worth at the time
of the award of the unpaid rent which had been earned at the time of
termination; (ii) the worth at the time of award of the amount by which the
unpaid rent which would have been earned after termination until the time of
award exceeds the amount of such rental loss that the Lessee proves could have
been reasonably avoided; (iii) the worth at the time of award of the amount by
which the unpaid rent for the balance of the term after the time of award
exceeds the amount of such rental loss that the Lessee proves could be
reasonably avoided; and (iv) any other amount necessary to compensate Lessor for
all the detriment proximately caused by the Lessee's failure to perform its
obligations under this Lease or which in the ordinary course of things would be
likely to result therefrom, including, but not limited to, the cost of
recovering possession of the Premises, expenses of reletting, including
necessary renovation and alteration of the Premises, reasonable attorneys' fees,
and that portion of any leasing commission paid by Lessor in connection with
this Lease applicable to the unexpired term of this Lease. The worth at the time
of award of the amount referred to in provision (iii) of the immediately
preceding sentence shall be computed by discounting such amount at the discount
rate of the Federal Reserve Bank of San Francisco or the Federal Reserve Bank
District in which the Premises are located at the time of award plus one percent
(1%). Efforts by Lessor to mitigate damages caused by Lessee's Default or Breach
of this Lease shall not waive Lessor's right to recover damages under this
Paragraph 13.2. If termination of this Lease is obtained through the provisional
remedy of unlawful detainer, Lessor shall have the right to recover in such
proceeding the unpaid rent and damages as are recoverable therein, or Lessor may
reserve the right to recover all or any part thereof in a separate suit for such
rent and/or damages. If a notice and grace period required under Subparagraphs
13.1(b), (c) or (d) was not previously given, a notice to pay rent or quit, or
to perform or quit, as the case may be, given to Lessee under any statute
authorizing the forfeiture of leases for unlawful detainer shall also constitute
the applicable notice for grace period purposes required by Subparagraph
13.1(b), (c) or (d). In such case, the applicable grace period under the
unlawful detainer statute shall run concurrently after the one such statutory
notice, and the failure of Lessee to cure the Default within the greater of the
two (2) such grace periods shall constitute both an unlawful detainer and a
Breach of this Lease entitling Lessor to the remedies provided for in this Lease
and/or by said statute.

              (b) Continue the Lease and Lessee's right to possession in effect
(in California under California Civil Code Section 1951.4) after Lessee's Breach
and recover the rent as it becomes due, provided Lessee has the right to sublet
or assign, subject only to reasonable limitations. Lessor and Lessee agree that
the limitations on assignment and subletting in this Lease are reasonable. Acts
of maintenance or preservation, efforts to relet the Premises, or the
appointment of a receiver to protect the Lessor's interest under this Lease,
shall not constitute a termination of the Lessee's right to possession.

              (c) Pursue any other remedy now or hereafter available to Lessor
under the laws or judicial decisions of the state wherein the Premises are
located.

              (d) The expiration or termination of this Lease and/or the
termination of Lessee's right to possession shall not relieve Lessee from
liability under any indemnity provisions of this Lease as to matters occurring
or accruing during the term hereof or by reason of Lessee's occupancy of the
Premises.

     13.3 INDUCEMENT RECAPTURE IN EVENT OF BREACH. Any agreement by Lessor for
free or abated rent or other charges applicable to the Premises, or for the
giving or paying by Lessor to or for Lessee of any cash or other bonus,
inducement or consideration for Lessee's entering into this Lease, all of which
concessions are hereinafter referred to as "INDUCEMENT PROVISIONS" shall be
deemed conditioned upon Lessee's full and faithful performance of all of the
terms, covenants and conditions of this Lease to be performed or observed by
Lessee during the term hereof as the same may be extended. Upon the occurrence
of a Breach (as defined in Paragraph 13.1) of this Lease by Lessee, any such
Inducement Provision shall automatically be deemed deleted from this Lease and
of no further force or effect, and any rent, other charge, bonus, inducement or
consideration theretofore abated, given or paid by Lessor under such an
Inducement Provision shall be immediately due and payable by Lessee to Lessor,
and recoverable by Lessor, as additional rent due under this Lease,
notwithstanding any subsequent cure of said Breach by Lessee. The acceptance by
Lessor of rent or the cure of the Breach which initiated the operation of this
Paragraph 13.3 shall not be deemed a waiver by Lessor of the provisions of this
Paragraph 13.3 unless specifically so stated in writing by Lessor at the time of
such acceptance.

     13.4 LATE CHARGES. Lessee hereby acknowledges that late payment by Lessee
to Lessor of rent and other sums due hereunder will cause Lessor to incur costs
not contemplated by this Lease, the exact amount of which will be extremely
difficult to ascertain. Such costs include, but are not limited to, processing
and accounting charges, and late charges which may be imposed upon Lessor by the
terms of any ground lease, mortgage or deed of trust covering the Premises.
Accordingly, if any installment of rent or other sum due from Lessee shall not
be received by Lessor or Lessor's designee within ten (10) days after such
amount shall be due, then, without any requirement for notice to Lessee, Lessee
shall pay to Lessor a late charge equal to six percent (6%) of such overdue
amount. The Parties hereby agree that such late charge represents a fair and
reasonable estimate of the costs Lessor will incur by reason of late payment by
Lessee. Acceptance of such late charge by Lessor shall in no event constitute a
waiver of Lessee's Default or Breach with respect to such overdue amount, nor
prevent Lessor from exercising any of the other rights and remedies granted
hereunder. In the event that a late charge is payable hereunder, whether or not
collected, for three (3) consecutive installments of Base Rent, then
notwithstanding Paragraph 4.1 or any other provision of this Lease to the
contrary, Base Rent shall, at Lessor's option, become due and payable quarterly
in advance.

     13.5 BREACH BY LESSOR. Lessor shall not be deemed in breach of this Lease
unless Lessor fails within a reasonable time to perform an obligation required
to be performed by Lessor. For purposes of this Paragraph 13.5, a reasonable
time shall in no event be less than thirty (30) days after receipt by Lessor,
and by any Lender(s) whose name and address shall have been furnished to Lessee
in writing for such purpose, of written notice specifying wherein such
obligation of Lessor has not been performed; provided, however, that if the
nature of Lessor's obligation is such that more than thirty (30) days after such
notice are reasonably required for its performance, then Lessor shall not be in
breach of this Lease if performance is commenced within such thirty (30) day
period and thereafter diligently pursued to completion.

14. CONDEMNATION. If the Premises or any portion thereof are taken under the
power of eminent domain or sold under the threat of the exercise of said power
(all of which are herein called "condemnation"), this Lease shall terminate as
to the part so taken as of the date the condemning authority takes title or
possession, whichever first occurs. If more than ten percent (10%) of the floor
area of the Premises, or more than twenty-five percent (25%) of the portion of
the Common Areas designated for Lessee's parking, is taken by condemnation,
Lessee may, at Lessee's option, to be exercised in writing within ten (10) days
after Lessor shall have given Lessee written notice of such taking (or in the
absence of such notice, within ten (10) days after the condemning authority
shall have taken possession) terminate this Lease as of the date the condemning
authority takes such possession. If Lessee does not terminate this Lease in
accordance with the foregoing, this Lease shall remain in full force and effect
as to the portion of the Premises remaining, except that the Base Rent shall be
reduced in the same proportion as the rentable floor area of the Premises taken
bears to the total rentable floor area of the Premises. No reduction of Base
Rent shall occur if the condemnation does not apply to any portion of the
Premises. Any award for the taking of all or any part of the Premises under the
power of eminent domain or any payment made under threat of the exercise of such
power shall be the property of Lessor, whether such award shall be made as
compensation for diminution of value of the leasehold or for the taking of the
fee, or as severance damages; provided, however, that Lessee shall be entitled
to any compensation, separately awarded to Lessee for Lessee's relocation
expenses and/or loss of Lessee's Trade Fixtures. In the event that this Lease is
not terminated by reason of such condemnation, Lessor shall to the extent of its
net severance damages received, over and above Lessee's share of the legal and
other expenses incurred by Lessor in the condemnation matter, repair any damage
to the Premises caused by such condemnation authority. Lessee shall be
responsible for the payment of any amount in excess of such net severance
damages required to complete such repair.

15.  BROKERS' FEES

     15.1 PROCURING CAUSE. The Broker(s) named in Paragraph 1.10 is/are the
procuring cause of this Lease.

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     15.3 ASSUMPTION OF OBLIGATIONS. Any buyer or transferee of Lessor's
interest in this Lease, whether such transfer is by agreement or by operation of
law, shall be deemed to have assumed Lessor's obligation under this Paragraph
15. Each Broker shall be an intended third party beneficiary of the provisions
of Paragraph 1.10 and of this Paragraph 15 to the extent of its interest in any
commission arising from this Lease and may enforce that right directly against
Lessor and its successors.

     15.4 REPRESENTATIONS AND WARRANTIES. Lessee and Lessor each represent and
warrant to the other that it has had no dealings with any person, firm, broker
or finder other than as named in Paragraph 1.10(a) in connection with the
negotiation of this Lease and/or the consummation of the transaction
contemplated hereby, and that no broker or other person, firm or entity other
than said named Broker(s) is entitled to any commission or finder's fee in
connection with said transaction. Lessee and Lessor do each hereby agree to
indemnify, protect, defend and hold the other harmless from and against
liability for compensation or charges which may be claimed by any such unnamed
broker, finder or other similar party by reason of any dealings or actions of
the indemnifying Party, including any costs, expenses, and/or attorneys' fees
reasonably incurred with respect thereto.

16.  TENANCY AND FINANCIAL STATEMENTS.

     16.1 TENANCY STATEMENT. Each Party (as "RESPONDING PARTY") shall within ten
(10) days after written notice from the other Party (the "REQUESTING PARTY")
execute, acknowledge and deliver to the Requesting Party a statement in writing
in a form similar to the then most current "TENANCY STATEMENT" form published by
the American Industrial Real Estate Association, plus such additional
information, confirmation and/or statements as may be reasonably requested by
the Requesting Party.

     16.2 FINANCIAL STATEMENT. If Lessor desires to finance, refinance, or sell
the Premises or the Building, or any part thereof, Lessee and all Guarantors
shall deliver to any potential lender or purchaser designated by Lessor such
financial statements of Lessee and such Guarantors as may be reasonably required
by such lender or purchaser, including, but not limited to, Lessee's financial
statements for the past three (3) years. All such financial statements shall be
received by Lessor and such lender or purchaser in confidence and shall be used
only for the purposes herein set forth.

17. LESSOR'S LIABILITY. The term "LESSOR" as used herein shall mean the owner or
owners at the time in question of the fee title to the Premises. In the event of
a transfer of Lessor's title or interest in the Premises or in this Lease,
Lessor shall deliver to the transferee or assignee (in cash or by credit) any
unused Security Deposit held by Lessor at the time of such transfer or
assignment. Except as provided in Paragraph 15.3, upon such transfer or
assignment and delivery of the Security Deposit, as aforesaid, the prior Lessor
shall be relieved of all liability with respect to the obligations and/or
covenants under this Lease thereafter to be performed by the Lessor. Subject to
the foregoing, the obligations and/or covenants in this Lease to be performed by
the Lessor shall be binding only upon the Lessor as hereinabove defined.

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

19. INTEREST ON PAST-DUE OBLIGATIONS. Any monetary payment due Lessor hereunder,
other than late charges, not received by Lessor within ten (10) days following
the date on which it was due, shall bear interest from the date due at the prime
rate charged by the largest state chartered bank in the state in which the
Premises are located plus four percent (4%) per annum, but not exceeding the
maximum rate allowed by law, in addition to the potential late charge provided
for in Paragraph 13.4.

20. TIME OF ESSENCE. Time is of the essence with respect to the performance of
all obligations to be performed or observed by the Parties under this Lease.

21. RENT DEFINED. All monetary obligations of Lessee to Lessor under the terms
of this Lease are deemed to be rent.

22. NO PRIOR OR OTHER AGREEMENTS; BROKER DISCLAIMER. This Lease contains all
agreements between the Parties with respect to any matter mentioned herein, and
no other prior or contemporaneous agreement or understanding shall be effective.
Lessor and Lessee each represents and warrants to the Brokers that it has made,
and is relying solely upon, its own investigation as to the nature, quality,
character and financial responsibility of the other Party to this Lease and as
to the nature, quality and character of the Premises. Brokers have no
responsibility with respect thereto or with respect to any default or breach
hereof by either Party. Each Broker shall be an intended third party beneficiary
of the provisions of this Paragraph 22.

23.  NOTICES.

     23.1 NOTICE REQUIREMENTS. All notices required or permitted by this Lease
shall be in writing and may be delivered in person (by hand or by messenger or
courier service) or may be sent by regular, certified or registered mail or U.S.
Postal Service Express Mail, with postage prepaid, or by facsimile transmission
during normal business hours, and shall be deemed sufficiently given if served
in a manner specified in this Paragraph 23. The addresses noted adjacent to a
Party's signature on this Lease shall be that Party's address for delivery or
mailing of notice purposes. Either Party may by written notice to the other
specify a different address for notice purposes, except that upon Lessee's
taking possession of the Premises, the Premises shall constitute Lessee's
address for the purpose of mailing or delivering notices to Lessee. A copy of
all notices required or permitted to be given to Lessor hereunder shall be
concurrently transmitted to such party or parties at such addresses as Lessor
may from time to time hereafter designate by written notice to Lessee.

     23.2 DATE OF NOTICE. Any notice sent by registered or certified mail,
return receipt requested, shall be deemed given on the date of delivery shown on
the receipt card, or if no delivery date is shown, the postmark thereon. If sent
by regular mail, the notice shall be deemed given forty-eight (48) hours after
the same is addressed as required herein and mailed with postage prepaid.
Notices delivered by United States Express Mail or overnight courier that
guarantees next day delivery shall be deemed given twenty-four (24) hours after
delivery of the same to the United States Postal Service or courier. If any
notice is transmitted by facsimile transmission or similar means, the same shall
be deemed served or delivered upon telephone or facsimile confirmation of
receipt of the transmission thereof, provided a copy is also delivered via
delivery or mail. If notice is received on a Saturday or a Sunday or a legal
holiday, it shall be deemed received on the next business day.

24. WAIVERS. No waiver by Lessor of the Default or Breach of any term, covenant
or condition hereof by Lessee, shall be deemed a waiver of any other term,
covenant or condition hereof, or of any subsequent Default or Breach by Lessee
of the same or any other term, covenant or condition hereof. Lessor's consent
to, or approval of, any such act shall not be deemed to render unnecessary the
obtaining of Lessor's consent to, or approval of, any subsequent or similar act
by Lessee, or be construed as the basis of an estoppel to enforce the provision
or provisions of this Lease requiring such consent. Regardless of Lessor's
knowledge of a Default or Breach at the time of accepting rent, the acceptance
of rent by Lessor shall not be a waiver of any Default or Breach by Lessee of
any provision hereof. Any payment given Lessor by Lessee may be accepted by
Lessor on account of monies or damages due Lessor, notwithstanding any
qualifying statements or conditions made by Lessee in connection therewith,
which such statements and/or conditions shall be of no force or effect
whatsoever unless specifically agreed to in writing by Lessor at or before the
time of deposit of such payment.

25. RECORDING. Either Lessor or Lessee shall, upon request of the other,
execute, acknowledge and deliver to the other a short form memorandum of this
Lease for recording purposes. The Party requesting recordation shall be
responsible for payment of any fees or taxes applicable thereto.

26. NO RIGHT TO HOLDOVER. Lessee has no right to retain possession of the
Premises or any part thereof beyond the expiration or earlier termination of
this Lease. In the event that Lessee holds over in violation of this Paragraph
26 then the Base Rent payable from and after the time of the expiration or
earlier termination of this Lease shall be increased to two hundred percent
(200%) of the Base Rent applicable during the month immediately preceding such
expiration or earlier termination. Nothing contained herein shall be construed
as a consent by Lessor to any holding over by Lessee.

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

28. COVENANTS AND CONDITIONS. All provisions of this Lease to be observed or
performed by Lessee are both covenants and conditions.

29. BINDING EFFECT; CHOICE OF LAW. This Lease shall be binding upon the Parties,
their personal representatives, successors and assigns and be governed by the
laws of the state in which the Premises are located. Any litigation between the
Parties hereto concerning this Lease shall be initiated in the county in which
the Premises are located.

30.  SUBORDINATION; ATTORNMENT; NON-DISTURBANCE.

     30.1 SUBORDINATION. This Lease and any Option granted hereby shall be
subject and subordinate to any ground lease, mortgage, deed of trust, or other
hypothecation or security device (collectively, "SECURITY DEVICE"), now or
hereafter placed by Lessor upon the real property of which the Premises are a
part, to any and all advances made on the security thereof, and to all renewals,
modifications, consolidations, replacements and extensions thereof. Lessee
agrees that the Lenders holding any such Security Device shall have no duty,
liability or obligation to perform any of the obligations of Lessor under this
Lease, but that in the event of Lessor's default with respect to any such
obligation, Lessee will give any Lender whose name and address have been

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furnished Lessee in writing for such purpose notice of Lessor's default pursuant
to Paragraph 13.5. If any Lender shall elect to have this Lease and/or any
Option granted hereby superior to the lien of its Security Device and shall give
written notice thereof to Lessee, this Lease and such Options shall be deemed
prior to such Security Device, notwithstanding the relative dates of the
documentation or recordation thereof.

     30.2 ATTORNMENT. Subject to the non-disturbance provisions of Paragraph
30.3, Lessee agrees to attorn to a Lender or any other party who acquires
ownership of the Premises by reason of a foreclosure of a Security Device, and
that in the event of such foreclosure, such new owner shall not: (i) be liable
for any act or omission of any prior lessor or with respect to events occurring
prior to acquisition of ownership, (ii) be subject to any offsets or defenses
which Lessee might have against any prior lessor, or (iii) be bound by
prepayment of more than one (1) month's rent.

     30.3 NON-DISTURBANCE. With respect to Security Devices entered into by
Lessor after the execution of this Lease, Lessee's subordination of this Lease
shall be subject to receiving assurance (a "non-disturbance agreement") from the
Lender that Lessee's possession and this Lease, including any options to extend
the term hereof, will not be disturbed so long as Lessee is not in Breach hereof
and attorns to the record owner of the Premises.

     30.4 SELF-EXECUTING. The agreements contained in this Paragraph 30 shall be
effective without the execution of any further documents; provided, however,
that upon written request from Lessor or a Lender in connection with a sale,
financing or refinancing of Premises, Lessee and Lessor shall execute such
further writings as may be reasonably required to separately document any such
subordination or non-subordination, attornment and/or non-disturbance agreement
as is provided for herein.

31. ATTORNEYS' FEES. If any Party or Broker brings an action or proceeding to
enforce the terms hereof or declare rights hereunder, the Prevailing Party (as
hereafter defined) in any such proceeding, action, or appeal thereon, shall be
entitled to reasonable attorneys' fees. Such fees may be awarded in the same
suit or recovered in a separate suit, whether or not such action or proceeding
is pursued to decision or judgment. The term "PREVAILING PARTY" shall include,
without limitation, a Party or Broker who substantially obtains or defeats the
relief sought, as the case may be, whether by compromise, settlement, judgment,
or the abandonment by the other Party or Broker of its claim or defense. The
attorneys' fee award shall not be computed in accordance with any court fee
schedule, but shall be such as to fully reimburse all attorneys' fees reasonably
incurred. Lessor shall be entitled to attorneys' fees, costs and expenses
incurred in preparation and service of notices of Default and consultations in
connection therewith, whether or not a legal action is subsequently commenced in
connection with such Default or resulting Breach. Broker(s) shall be intended
third party beneficiaries of this Paragraph 31.

32. LESSOR'S ACCESS; SHOWING PREMISES; REPAIRS. Lessor and Lessor's agents shall
have the right to enter the Premises at any time, in the case of an emergency,
and otherwise at reasonable times for the purpose of showing the same to
prospective purchasers, lenders, or lessees, and making such alterations,
repairs, improvements or additions to the Premises or to the Building, as Lessor
may reasonably deem necessary. Lessor may at any time place on or about the
Premises or Building any ordinary "For Sale" signs and Lessor may at any time
during the last one hundred eighty (180) days of the term hereof place on or
about the Premises any ordinary "For Lease" signs. All such activities of Lessor
shall be without abatement of Rent or liability to Lessee.

33. AUCTIONS. Lessee shall not conduct, nor permit to be conducted, either
voluntarily or involuntarily, any auction upon the Premises without first having
obtained Lessor's prior written consent. Notwithstanding anything to the
contrary in this Lease, Lessor shall not be obligated to exercise any standard
of reasonableness in determining whether to grant such consent.

34. SIGNS. Lessee shall not place any sign upon the exterior of the Premises or
the Building, except that Lessee may, with Lessor's prior written consent,
install (but not on the roof) such signs as are reasonably required to advertise
Lessee's own business so long as such signs are in a location designated by
Lessor and comply with Applicable Requirements and the signage criteria
established for the Industrial Center by Lessor. The installation of any sign on
the Premises by or for Lessee shall be subject to the provisions of Paragraph 7
(Maintenance, Repairs, Utility Installations, Trade Fixtures and Alterations).
Unless otherwise expressly agreed herein, Lessor reserves all rights to the use
of the roof of the Building, and the right to install advertising signs on the
Building, including the roof, which do not unreasonably interfere with the
conduct of Lessee's business; Lessor shall be entitled to all revenues from such
advertising signs.

35. TERMINATION; MERGER. Unless specifically stated otherwise in writing by
Lessor, the voluntary or other surrender of this Lease by Lessee, the mutual
termination or cancellation hereof, or a termination hereof by Lessor for Breach
by Lessee, shall automatically terminate any sublease or lesser estate in the
Premises; provided, however, Lessor shall, in the event of any such surrender,
termination or cancellation, have the option to continue any one or all of any
existing subtenancies. Lessor's failure within ten (10) days following any such
event to make a written election to the contrary by written notice to the holder
of any such lesser interest, shall constitute Lessor's election to have such
event constitute the termination of such interest.

36.  CONSENTS.

              (a) Except for Paragraph 33 hereof (Auctions) or as otherwise
provided herein, wherever in this Lease the consent of a Party is required to an
act by or for the other Party, such consent shall not be unreasonably withheld
or delayed. Lessor's actual reasonable costs and expenses (including, but not
limited to, architects', attorneys', engineers' and other consultants' fees)
incurred in the consideration of, or response to, a request by Lessee for any
Lessor consent pertaining to this Lease or the Premises, including, but not
limited to, consents to an assignment, a subletting or the presence or use of a
Hazardous Substance, shall be paid by Lessee to Lessor upon receipt of an
invoice and supporting documentation therefor. In addition to the deposit
described in Paragraph 12.2(e), Lessor may, as a condition to considering any
such request by Lessee, require that Lessee deposit with Lessor an amount of
money (in addition to the Security Deposit held under Paragraph 5) reasonably
calculated by Lessor to represent the cost Lessor will incur in considering and
responding to Lessee's request. Any unused portion of said deposit shall be
refunded to Lessee without interest. Lessor's consent to any act, assignment of
this Lease or subletting of the Premises by Lessee shall not constitute an
acknowledgment that no Default or Breach by Lessee of this Lease exists, nor
shall such consent be deemed a waiver of any then existing Default or Breach,
except as may be otherwise specifically stated in writing by Lessor at the time
of such consent.

              (b) All conditions to Lessor's consent authorized by this Lease
are acknowledged by Lessee as being reasonable. The failure to specify herein
any particular condition to Lessor's consent shall not preclude the impositions
by Lessor at the time of consent of such further or other conditions as are then
reasonable with reference to the particular matter for which consent is being
given.

37.  GUARANTOR.

     37.1 FORM OF GUARANTY. If there are to be any Guarantors of this Lease per
Paragraph 1.11, the form of the guaranty to be executed by each such Guarantor
shall be in the form most recently published by the American Industrial Real
Estate Association, and each such Guarantor shall have the same obligations as
Lessee under this Lease, including, but not limited to, the obligation to
provide the Tenancy Statement and information required in Paragraph 16.

     37.2 ADDITIONAL OBLIGATIONS OF GUARANTOR. It shall constitute a Default of
the Lessee under this Lease if any such Guarantor fails or refuses, upon
reasonable request by Lessor to give: (a) evidence of the due execution of the
guaranty called for by this Lease, including the authority of the Guarantor (and
of the party signing on Guarantor's behalf) to obligate such Guarantor on said
guaranty, and resolution of its board of directors authorizing the making of
such guaranty, together with a certificate of incumbency showing the signatures
of the persons authorized to sign on its behalf, (b) current financial
statements of Guarantor as may from time to time be requested by Lessor, (c) a
Tenancy Statement, or (d) written confirmation that the guaranty is still in
effect.

38. QUIET POSSESSION. Upon payment by Lessee of the Rent for the Premises and
the performance of all of the covenants, conditions and provisions on Lessee's
part to be observed and performed under this Lease, Lessee shall have quiet
possession of the Premises for the entire term hereof subject to all of the
provisions of this Lease.

39. OPTIONS.

     39.1 DEFINITION. As used in this Lease, the word "OPTION" has the following
meaning: (a) the right to extend the term of this Lease or to renew this Lease
or to extend or renew any lease that Lessee has on other property of Lessor; (b)
the right of first refusal to lease the Premises or the right of first offer to
lease the Premises or the right of first refusal to lease other property of
Lessor or the right of first offer to lease other property of Lessor; (c) the
right to purchase the Premises, or the right of first refusal to purchase the
Premises, or the right of first offer to purchase the Premises, or the right to
purchase other property of Lessor, or the right of first refusal to purchase
other property of Lessor, or the right of first offer to purchase other property
of Lessor.

     39.2 OPTIONS PERSONAL TO ORIGINAL LESSEE. Each Option granted to Lessee in
this Lease is personal to the original Lessee named in Paragraph 1.1 hereof, and
cannot be voluntarily or involuntarily assigned or exercised by any person or
entity other than said original Lessee while the original Lessee is in full and
actual possession of the Premises and without the intention of thereafter
assigning or subletting. The Options, if any, herein granted to Lessee are not
assignable, either as a part of an assignment of this Lease or separately or
apart therefrom, and no Option may be separated from this Lease in any manner,
by reservation or otherwise.

     39.3 MULTIPLE OPTIONS. In the event that Lessee has any multiple Options to
extend or renew this Lease, a later option cannot be exercised unless the prior
Options to extend or renew this Lease have been validly exercised.

     39.4 EFFECT OF DEFAULT ON OPTIONS.

              (a) Lessee shall have no right to exercise an Option,
notwithstanding any provision in the grant of Option to the contrary: (i) during
the period commencing with the giving of any notice of Default under Paragraph
13.1 and continuing until the noticed Default is cured, or (ii) during the
period of time

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any monetary obligation due Lessor from Lessee is unpaid (without regard to
whether notice thereof is given Lessee), or (iii) during the time Lessee is in
Breach of this Lease, or (iv) in the event that Lessor has given to Lessee three
(3) or more notices of separate Default under Paragraph 13.1 during the twelve
(12) month period immediately preceding the exercise of the Option, whether or
not the Defaults are cured.

              (b) The period of time within which an Option may be exercised
shall not be extended or enlarged by reason of Lessee's inability to exercise an
Option because of the provisions of Paragraph 39.4(a).

              (c) All rights of Lessee under the provisions of an Option shall
terminate and be of no further force or effect, notwithstanding Lessee's due and
timely exercise of the Option, if, after such exercise and during the term of
this Lease, (i) Lessee fails to pay to Lessor a monetary obligation of Lessee
for a period of thirty (30) days after such obligation becomes due (without any
necessity of Lessor to give notice thereof to Lessee), or (ii) Lessor gives to
Lessee three (3) or more notices of separate Defaults under Paragraph 13.1
during any twelve (12) month period, whether or not the Defaults are cured, or
(iii) if Lessee commits a Breach of this Lease.

40. RULES AND REGULATIONS. Lessee agrees that it will abide by, and keep and
observe all reasonable rules and regulations ("RULES AND REGULATIONS") which
Lessor may make from time to time for the management, safety, care, and
cleanliness of the grounds, the parking and unloading of vehicles and the
preservation of good order, as well as for the convenience of other occupants or
tenants of the Building and the Industrial Center and their invitees.

41. SECURITY MEASURES. Lessee hereby acknowledges that the rental payable to
Lessor hereunder does not include the cost of guard service or other security
measures, and that Lessor shall have no obligation whatsoever to provide same.
Lessee assumes all responsibility for the protection of the Premises, Lessee,
its agents and invitees and their property from the acts of third parties.

42. RESERVATIONS. Lessor reserves the right, from time to time, to grant,
without the consent or joinder of Lessee, such easements, rights of way, utility
raceways, and dedications that Lessor deems necessary, and to cause the
recordation of parcel maps and restrictions, so long as such easements, rights
of way, utility raceways, dedications, maps and restrictions do not reasonably
interfere with the use of the Premises by Lessee. Lessee agrees to sign any
documents reasonably requested by Lessor to effectuate any such easement rights,
dedication, map or restrictions.

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

44. AUTHORITY. If either Party hereto is a corporation, trust, or general or
limited partnership, each individual executing this Lease on behalf of such
entity represents and warrants that he or she is duly authorized to execute and
deliver this Lease on its behalf. If Lessee is a corporation, trust or
partnership, Lessee shall, within thirty (30) days after request by Lessor,
deliver to Lessor evidence satisfactory to Lessor of such authority.

45. CONFLICT. Any conflict between the printed provisions of this Lease and the
typewritten or handwritten provisions shall be controlled by the typewritten or
handwritten provisions.

46. OFFER. Preparation of this Lease by either Lessor or Lessee or Lessor's
agent or Lessee's agent and submission of same to Lessee or Lessor shall not be
deemed an offer to lease. This Lease is not intended to be binding until
executed and delivered by all Parties hereto.

47. AMENDMENTS. This Lease may be modified only in writing, signed by the
Parties in interest at the time of the modification. The Parties shall amend
this Lease from time to time to reflect any adjustments that are made to the
Base Rent or other rent payable under this Lease. As long as they do not
materially change Lessee's obligations hereunder, Lessee agrees to make such
reasonable non-monetary modifications to this Lease as may be reasonably
required by an institutional insurance company or pension plan Lender in
connection with the obtaining of normal financing or refinancing of the property
of which the Premises are a part.

48. MULTIPLE PARTIES. Except as otherwise expressly provided herein, if more
than one person or entity is named herein as either Lessor or Lessee, the
obligations of such multiple parties shall be the joint and several
responsibility of all persons or entities named herein as such Lessor or Lessee.

     Attached hereto and Incorporated herewith are the following:

        Addendum paragraphs 49 through 55
        Exhibits "A" through "E"

                                  PAGE 12 OF 13
<PAGE>   15
LESSOR AND LESSEE HAVE CAREFULLY READ AND REVIEWED THIS LEASE AND EACH TERM AND
PROVISION CONTAINED HEREIN, AND BY THE EXECUTION OF THIS LEASE SHOW THEIR
INFORMED AND VOLUNTARY CONSENT THERETO. THE PARTIES HEREBY AGREE THAT, AT THE
TIME THIS LEASE IS EXECUTED, THE TERMS OF THIS LEASE ARE COMMERCIALLY REASONABLE
AND EFFECTUATE THE INTENT AND PURPOSE OF LESSOR AND LESSEE WITH RESPECT TO THE
PREMISES.

     IF THIS LEASE HAS BEEN FILLED IN, IT HAS BEEN PREPARED FOR YOUR ATTORNEY'S
     REVIEW AND APPROVAL. FURTHER, EXPERTS SHOULD BE CONSULTED TO EVALUATE THE
     CONDITION OF THE PROPERTY FOR THE POSSIBLE PRESENCE OF ASBESTOS,
     UNDERGROUND STORAGE TANKS OR HAZARDOUS SUBSTANCES. NO REPRESENTATION OR
     RECOMMENDATION IS MADE BY THE AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION
     OR BY THE REAL ESTATE BROKERS OR THEIR CONTRACTORS, AGENTS OR EMPLOYEES AS
     TO THE LEGAL SUFFICIENCY, LEGAL EFFECT, OR TAX CONSEQUENCES OF THIS LEASE
     OR THE TRANSACTION TO WHICH IT RELATES; THE PARTIES SHALL RELY SOLELY UPON
     THE ADVICE OF THEIR OWN COUNSEL AS TO THE LEGAL AND TAX CONSEQUENCES OF
     THIS LEASE. IF THE SUBJECT PROPERTY IS IN A STATE OTHER THAN CALIFORNIA, AN
     ATTORNEY FROM THE STATE WHERE THE PROPERTY IS LOCATED SHOULD BE CONSULTED.

The Parties hereto have executed this Lease at the place and on the dates
specified above their respective signatures.

Executed at: El Segundo CA                Executed at:
            --------------------------                --------------------------

on: November 30, 1999                     on:
    ----------------------------------        ----------------------------------

BY LESSOR:                                BY LESSEE:

     KILROY REALTY, L.P.,                    FUTURELINK DISTRIBUTION CORPORATION
     A Delaware Limited Partnership          A Colorado Corporation
     By: KILROY REALTY CORPORATION,
         A Maryland Corporation
         General Partner

By: /s/ JOHN T. FUCCI                     By: /s/
   -----------------------------------       -----------------------------------

Name Printed: JOHN T. FUCCI               Name Printed:
             -------------------------                 -------------------------

Title: SR. VICE PRESIDENT ASSET           Title: CHIEF STRATEGY OFFICER
       MANAGEMENT                               --------------------------------
      --------------------------------

By: /s/ JEFFREY C. HAWKEN                 By:
   -----------------------------------       -----------------------------------

Name Printed: JEFFREY C. HAWKEN           Name Printed:
             -------------------------                 -------------------------

Title: EXECUTIVE VICE PRESIDENT CHIEF     Title:
       OPERATING OFFICER                        --------------------------------
      --------------------------------

Address: 2250 E. Imperial Highway,        Address:
        ------------------------------            ------------------------------
Suite 360 El Segundo, California 90245
--------------------------------------    --------------------------------------

Telephone: (310) 563-5500                 Telephone: (   )
          ----------------------------              ----------------------------

Facsimile: (310) 416-9113                 Facsimile: (   )
           ---------------------------               ---------------------------

BROKER:                                   BROKER:

Executed at:                              Executed at:
            --------------------------                --------------------------

on:                                       on:
   -----------------------------------       -----------------------------------

By:                                       By:
   -----------------------------------       -----------------------------------

Name Printed:                             Name Printed:
             -------------------------                 -------------------------

Title:                                    Title:
      --------------------------------          --------------------------------

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

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

Telephone: (   )                          Telephone: (   )
          ----------------------------              ----------------------------

Facsimile: (   )                          Facsimile: (   )
           ---------------------------               ---------------------------

NOTE: These forms are often modified to meet changing requirements of law and
      needs of the industry. Always write or call to make sure you are utilizing
      the most current form: AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION, 700
      South Flower Street, Suite 600, Los Angeles, California 90017. (213)
      687-8777.

                                  PAGE 13 OF 13
<PAGE>   16
                                   EXHIBIT A

                                    PREMISES

Lessor and Lessee acknowledge that this plot plan is for general information
purposes only. Lessor shall not be liable and makes no representation or
warranty whatsoever concerning the existence or further existence or accuracy
of description or location, any buildings or improvements whatsoever depicted
herein shall be subject to correction modification or change at any time
without notice at Lessor's sole discretion. The parties hereby acknowledge that
the actual Demised Premises may vary as to size, dimensions and/or location
from the description of same herein above set forth. The aforesaid description
of the Demised Premises represents an approximation only and Lessor makes no
representation or warranty concerning the accuracy thereof in any respect.
Lessee hereby waives any and all claims, damages and/or right of recovery
against Lessor, it's officers, agents, representatives, and employees, arising
on account or by reason of the description of the Demised Premises herein above
set forth.

                                  [FLOOR PLAN]

                           220 TECHNOLOGY, SUITE 100

<PAGE>   17
                                   EXHIBIT B

                                    BUILDING

Lessor and Lessee acknowledge that this plot plan is for general information
purposes only. Lessor shall not be liable and makes no representation or
warranty whatsoever concerning the existence or further existence or accuracy of
description or location, any buildings or improvements whatsoever depicted
herein shall be subject to correction modification or change at any time without
notice at Lessor's sole discretion. The parties hereby acknowledge that the
actual Building may vary as to size, dimensions and/or location from the
description of same herein above set forth. The aforesaid description of the
Building represents an approximation only and Lessor makes no representation or
warranty concerning the accuracy thereof in any respect. Lessee hereby waives
any and all claims, damages and/or right of recovery against Lessor, it's
officers, agents, representatives, and employees arising on account or by reason
of the description of the Building herein above set forth.

                           [MAP of TECHNOLOGY DRIVE]

                              220 TECHNOLOGY DRIVE
<PAGE>   18
                                   EXHIBIT C

                               INDUSTRIAL CENTER

Lessor and Lessee acknowledge that this plot plan is for general information
purposes only. Lessor shall not be liable and makes no representation or
warranty whatsoever concerning the existence or further existence or accuracy of
description or location, any buildings or improvements whatsoever depicted
herein shall be subject to correction modification or change at any time without
notice at Lessor's sole discretion. The parties hereby acknowledge that the
actual Industrial Center may vary as to size, dimensions and/or location from
the description of same herein above set forth. The aforesaid description of the
Industrial Center represents an approximation only and Lessor makes no
representation or warranty concerning the accuracy thereof in any respect.
Lessee hereby waives any and all claims, damages and/or right of recovery
against Lessor, it's officers, agents, representatives, and employees, arising
on account or by reason of the description of the Industrial Center herein above
set forth.

                                     [MAP]
<PAGE>   19

                                   EXHIBIT D

                             RULES AND REGULATIONS

                                 GENERAL RULES

1.    Lessee shall not suffer or permit the obstruction of any Common Areas,
      including but not limited to driveways, walkways and stairways.

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

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

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

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

6.    Lessee shall not alter any lock or install new or additional locks or
      bolts without prior authorization from Lessor.

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

8.    Lessee shall not deface the walls, partitions, or other surfaces of the
      premises or Project.

9.    Lessee shall not suffer or permit anything in or around the premises or
      Building(s) that causes excessive vibration or floor loading in any part
      of the Project.

10.   Lessee shall not employ any service or contractor for services or work to
      be performed within the premises, except as approved by the Lessor.

11.   Lessor reserves the right to close and lock the Project on Saturdays,
      Sundays, and legal holidays, and on other days between the hours of 6 P.M.
      and 8 A.M. of the following day. If Lessee uses the Premises during such
      periods, Lessee shall be responsible for securely locking any doors it may
      have opened for entry.

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

13.   No Lessee, employee or invitee shall go upon the roof of the Building(s).

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

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

16.   Lessee shall not install, maintain or operate any vending machines on the
      premises without Lessor's written consent.

17.   The Premises shall not be used for lodging.

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

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

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

21.   Lessee to perform all work and activities within the premises.

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

PARKING RULES

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

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

3.    Lessor reserves the right to relocate all or a part of parking spaces from
      floor to floor within one floor, and/or to reasonable adjacent off site
      location(s), and to reasonably allocate them between compact and standard
      size space, as long as the same complies with applicable laws, ordinances,
      and regulations.

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

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

6.    The maintenance, washing, waxing or cleaning of vehicles in the parking
      area(s) or Common Area is prohibited.

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

8.    Lessor reserves the right to modify these rules and/or adopt such other
      reasonable and non-discriminatory rules and regulations, laws and
      agreements.

9.    Such parking use as is herein provided is intended merely as a license
      only and no bailment is intended or shall be created hereby.
<PAGE>   20
                                   EXHIBIT E

                    AIRCRAFT NOTIFICATION IRVINE SPECTRUM 3

     CITY OF IRVINE COMMUNITY DEVELOPMENT DEPARTMENT APPROVED AIRCRAFT
NOTIFICATION STATEMENT: PARCEL MAP NO 83-615 AS RECORDED IN BOOK 195 OF PARCEL
MAPS, PAGES 15 TO 34 INCLUSIVE, IN THE OFFICE OF THE ORANGE COUNTY RECORDER,
WITHIN THE CITY OF IRVINE, FILED BY THE IRVINE COMPANY, DBA IRVINE INDUSTRIAL
RESEARCH AND DEVELOPMENT COMPANY.

The United States Marine Corp. Air Bases, Western Area, El Toro, California
(MCAS El Toro) advises that the Irvine Technology Center (the "property") lies
within the MCAS El Toro Air Installation Compatible Use Zone (AICUZ) study
area. It abuts the Runways 25 and 34 which are approximately 1400 feet and 1250
feet respectively from the boundary of the property. Also, the property extends
into a clear zone and an accident potential zone.

A review of the traffic patterns from MCAS El Toro discloses that the subject
property is directly affected by conventional and jet aircraft operations from
Runway 25 and Runway 34 and one frequently occurring ground operation and a
helicopter route. They are summarized in the AICUZ for MCAS El Toro as follows:

     a.   Departing aircraft from MCAS EL Toro Runway 25 climb straight ahead,
     then turn 1st (southward) two miles or less from the air station pursuant
     to standard instrument or coded departures. When wind or other safety
     factors dictate, fighter/attack aircraft and aerial refuelers must use
     this runway due to take-off weight and terrain considerations. These
     aircraft climb out directly over the northerly tip of the property at high
     power settings.

     b.   Field Mirror Lending Practice (FMLP) is used to train pilots in field
     landing techniques. FMLP's are conducted at an altitude of 600 feet Above
     Ground Level (AGL), utilizing Runway 34L. Jet aircraft using this pattern
     will overfly the extremities of the property at high power settings. Also,
     this pattern surrounds the property on all sides. Consequently, the
     property will be subject to high noise levels when FMLP operations are
     conducted.

     c.   Regular traffic pattern Runway 34 is the most often utilized landing
     conducting strait in full stop landings and "Touch and Go" operations may
     overfly the southerly edge of the property. Additionally, aircraft in the
     Touch and Go Pattern will occasionally overfly the northern tip of the
     property. The "Touch and Go" pattern, flown at 1,000 feet AGL, surrounds
     the site on all sides. Because of the property's location it will be
     subject to high noise levels.

     d.   Depending upon wind direction and atmospheric conditions, the
     property is also impacted at times, by jet engine turn-ups on Runway 7,
     which is located approximately 1400 feet from the boundary of the
     property. This is a ground safety check for all types of aircraft prior to
     and during every departure to ensure that the power plant and various
     systems of the aircraft are operating properly. Jet aircraft thus
     departing Runway 7 (which is the primary take-off runway and the exact
     opposite of Runway 25) will have their engine tail pipes directed towards
     the property during their high power run ups just prior to take-off in the
     easterly direction.

     According to the MCAS El Toro Installation Compatible Use Zone (AICUZ)
     study, the property lies within the 70 CMEL contour with a small segment
     extending into the 75 CMEL contour. In this area actual noise level may
     equal or exceed the 75 CMEL level.

     The property lies adjacent to or in the vicinity of the Freeway, Raceway
     and Window helicopter routs as identified in the MCAS Tustin Air
     Installation Compatible Use Zone (AICUZ) study area. These routes are
     egress/ingress routes approximately 1/4 mile wide. Helicopters in these
     routs fly at elevations of up to 2500' Above Sea Level.

     As a consequence of the above, an owner can expect to frequently hear and
     see arriving and departing aircraft during the following hours:

     MCAS El Toro has the following normal hours of operation:

     Monday through Friday:             7:00 a.m. to 10:00 p.m.
     Saturday and Sunday:               9:00 a.m. to 6:00 p.m.

     MCAS (II) Tustin has the following normal hours of operation:

     Monday:                            11:00 a.m. to 9:00 p.m.
     Tuesday through Thursday:     8:00 a.m. to 10:00 p.m.
     Friday:                            8:00 a.m. to 5:00 p.m.

     The forecasted hours of normal operations for both facilities have been
     imposed due to fiscal and manpower constraints, as well as being designed
     to reduce the noise impact of operations of the surrounding community. It
     should be noted that MCAS El Toro is a designated master jet base which
     can operate 24 hours per seven day week as can MCAS (II) Tustin. The
     command adheres to the above stated normal hours of operation whenever
     possible. However, it should be emphasized that special conditions may
     arise which could cause an extension of the facility's normal operational
     requirements.

     According to the MCAS El Toro AICUZ, portions of the subject property lie
     within a Clear Zone and Accident Potential Zone I. These areas are subject
     to restrictions upon development which are outlined in greater detail in
     the MCAS El Toro AICUZ.
<PAGE>   21
                         ADDENDUM TO THAT CERTAIN LEASE
                            DATED SEPTEMBER 23, 1999
                                 BY AND BETWEEN
                              KILROY REALTY, L.P.,
                         A DELAWARE LIMITED PARTNERSHIP
                           KILROY REALTY CORPORATION,
                            A MARYLAND CORPORATION,
                                GENERAL PARTNER
                                   ("LESSOR")
                                    - AND -
                      FUTURELINK DISTRIBUTION CORPORATION
                             A COLORADO CORPORATION
                                   ("LESSEE")

                          FOR THE PREMISES LOCATED AT:
           220 TECHNOLOGY DRIVE, SUITE 100, IRVINE, CALIFORNIA 92618

49.  COMMON AREA OPERATING EXPENSES. Lessee shall pay its pro rata share of all
     operating expenses, as described in paragraph 1.6(b) and 4.2 of the Lease.
     Lessee's Share of 4.37% has been determined based upon the square footage
     of the Premises as compared to the square footage of the Kilroy Technology
     Center. Lessor at its discretion reserves the right and option in the
     future to establish two or more separate "Lessee's Share," one to be based
     upon the square footage of the Premises as compared to the square footage
     of the Kilroy Technology Center, and the other to be based upon the square
     footage of the Premises as compared to the square footage of the Building.
     In either event such determination of Lessee's Share shall be determined
     and allocated in a manner that is fair and reasonable to apportion to all
     lessees the Common Area Operating Expenses at the Kilroy Technology
     Center. Said costs are approximately $0.26 per square foot, per month
     ($1,808.04 per month).

50.  CONDITION OF PREMISES. Lessee acknowledges that Lessee has inspected the
     Premises and Lessee has and shall accept the Premises in the present "as
     is" condition thereof at the Commencement Date of the Term of the Lease,
     except that Lessor shall make the following improvements to the Premises
     using Lessor's Building Standard Materials and construction standards:

     50.1  PAINT OFFICE AREA.

51.  SECURITY DEPOSIT; ADVANCE RENT. Upon Lease execution, Lessee shall pay a
     security deposit in the amount of $32,336.10 (three-months rent), advance
     rent in the amount of $10,778.70 and one month of estimated Common Area
     Operating Expenses in the amount of $1,808.04, for a total of $44,922.84.

52.  PARKING. The Unreserved Parking Spaces set forth in paragraph 1.2(b) of
     the Lease have been established on the basis of three (3) unreserved
     parking permits per 1,000 usable square feet leased, which shall be
     undesignated and unreserved. Such parking shall be free of charge during
     the initial term of the Lease.

53.  SIGNAGE.

     53.1  During the Lease Term, Lessee shall be entitled to display its name
           on one (1) sign affixed to the exterior of the Building ("Lessee's
           Sign"). Lessee's Sign must:

           53.1.1  Comply with all applicable government laws, statutes,
                   regulations, rules, codes, ordinances and, the planned sign
                   program for Warren Technology Center, Spectrum 3 (project
                   #0322), approved on October 31, 1991 by the City of Irvine;

           53.1.2  Comply with the provisions of this Lease;

           53.1.3  Have been approved in advance by all appropriate government
                   agencies;

                                      -1-

<PAGE>   22
          53.1.4 Have been approved in advance by Lessor as to design, location
                 and manner of attachment to the Building;

          53.1.5 Comply with all instruments recorded against the Industrial
                 Center of which the Premises are a part;

          53.1.6 Be subject to and conditional upon the rights and privileges of
                 all preexisisting sign rights of other lessees.

          53.1.7 Lessee shall bear all expenses relating to Lessee's Sign,
                 including:

                 53.1.7.1     The cost of Lessee's Sign;

                 53.1.7.2     The cost of obtaining permits and approvals;

                 53.1.7.3     The cost of installing, maintaining, repairing and
                              replacing Lessee's Sign;

                 53.1.7.4     The cost of any electrical consumption
                              illuminating Lessee's Sign; and

                 53.1.7.5     Costs associated with the removal of Lessee's
                              Sign, repair of any damage caused by such removal,
                              and restoration of the site of Lessee's Sign on
                              the Building to the condition in which those
                              portions of the Building existed before the
                              installation of Lessee's Sign. Lessee shall pay to
                              Lessor, within thirty (30) days after receipt of
                              Lessor's demand, all expenses incurred by Lessor
                              except for those payable directly by Lessee to any
                              third party. Lessee's payment obligation under
                              this paragraph 53 shall survive the expiration or
                              earlier termination of the Lease Term.

54.  ESTOPPEL CERTIFICATE. The Tenancy Statement referred to in paragraph 16.1
     and the "further writings" referred to in line 3 of paragraph 30.4 of the
     Lease each shall be, at the option of the Lessor or a lender or purchaser
     from Lessor, in the customary form of the requesting lender or a purchaser
     of all or a portion of the Building.

55.  NOTICE. In addition to any notice to be given to Lessor as set forth in
     paragraph 23.1 of the Lease, requiring notices to be sent to the address
     set forth in the Lessor's signature block on page 13 of the Lease, a copy
     of any such notice to Lessor also shall be given to:

                Kilroy Realty, L.P.
                184 Technology Drive, Suite 200
                Irvine, California 92618
                Tel. No. (949) 790-0840
                Fax No. (949) 790-0884

                With a copy to Lessor's attorney as follows:

                Marshall L. McDaniel
                McDaniel & McDaniel
                2250 E. Imperial Highway, Suite 1200
                El Segundo, California 90245
                Tel. No. (310) 640-1960
                Fax No. (310) 322-8790

                                      -2-

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