Document:

<PAGE>   1
                                                                   Exhibit 10.26

                                  OFFICE LEASE

                                     BETWEEN

                           MONY/BDP OFFICE I, L.L.C.,
                      A COLORADO LIMITED LIABILITY COMPANY
                                  ("LANDLORD")

                                       AND

                      INTEGRATED INFORMATION SYSTEMS, INC.
                             A DELAWARE CORPORATION
                                   ("TENANT")

                              DATE OF LEASE 5/26/00

                         BUILDING: EXECUTIVE CENTER ONE
<PAGE>   2
                               TABLE OF CONTENTS

<TABLE>
<S>                                                                           <C>
1. DEFINITIONS .........................................................       1

2. LEASE GRANT .........................................................       4

3. ADJUSTMENT OF COMMENCEMENT DATE/POSSESSION ..........................       4

4. USE .................................................................       6

5. BASE RENTAL .........................................................       6

6. SECURITY DEPOSIT ....................................................       7

7. SERVICES TO BE FURNISHED BY LANDLORD ................................       7

8. LEASEHOLD IMPROVEMENTS/TENANT'S PROPERTY ............................       9

9. SIGNAGE .............................................................      10

10. REPAIRS AND ALTERATIONS BY TENANT ..................................      10

11. USE OF ELECTRICAL SERVICES BY TENANT ...............................      11

12. ENTRY BY LANDLORD ..................................................      11

13. ASSIGNMENT AND SUBLETTING ..........................................      12

14. MECHANIC'S LIENS ...................................................      13

15. INSURANCE ..........................................................      13

16. INDEMNITY ..........................................................      15

17. DAMAGES FROM CERTAIN CAUSES ........................................      16

18. CASUALTY DAMAGE ....................................................      16

19. CONDEMNATION .......................................................      17

20. HAZARDOUS SUBSTANCES ...............................................      17

21. AMERICANS WITH DISABILITIES ACT ....................................      19

22. EVENTS OF DEFAULT ..................................................      19

23. REMEDIES ...........................................................      20

24. NO WAIVER ..........................................................      24

25. PEACEFUL ENJOYMENT .................................................      24
</TABLE>

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<TABLE>
<S>                                                                           <C>
26. SUBSTITUTION .......................................................      24

27. HOLDING OVER .......................................................      24

28. SUBORDINATION TO MORTGAGE/ESTOPPEL CERTIFICATE .....................      24

29. NOTICE .............................................................      25

30. LANDLORD'S LIEN ....................................................      25

31. SURRENDER OF PREMISES ..............................................      26

32. RIGHTS RESERVED TO LANDLORD ........................................      26

33. MISCELLANEOUS ......................................................      27

34. ENTIRE AGREEMENT ...................................................      28

35. LIMITATION OF LIABILITY ............................................      28
</TABLE>

EXHIBIT A-OUTLINE AND LOCATION OF PREMISES

EXHIBIT B-LEGAL DESCRIPTION

EXHIBIT C-RULES AND REGULATIONS

EXHIBIT D-PAYMENT OF BASIC COSTS

EXHIBIT E-WORK LETTER

EXHIBIT E-1-BASE BUILDING SHELL AND CORE CONDITION

EXHIBIT E-2-TENANT IMPROVEMENT ALLOWANCE

EXHIBIT E-3-LANDLORD'S BUILDING STANDARD MATERIALS

EXHIBIT F-ADDITIONAL PROVISIONS

EXHIBIT G-RENEWAL OPTION

EXHIBIT H-COMMENCEMENT LETTER

EXHIBIT I-PARKING AGREEMENT

EXHIBIT J-LETTER OF CREDIT

EXHIBIT K-FORM OF DEMAND LETTER OF CREDIT

                                       ii
<PAGE>   4
                             OFFICE LEASE AGREEMENT

This Office Lease Agreement (THE "LEASE"), made and entered into on this the 26
day of May 2000, between MONY/BDP OFFICE I, A COLORADO LIMITED LIABILITY COMPANY
("LANDLORD") AND INTEGRATED INFORMATION SYSTEMS, INC., A DELAWARE CORPORATION,
("TENANT").

                              W I T N E S S E T H:

1. DEFINITIONS. The following are definitions of some of the defined terms used
in this Lease. The definition of other defined terms are found throughout this
Lease.

         A. "BUILDING" shall mean the office building at 11551 East Arapahoe
         Road, County of Arapahoe, State of Colorado, currently known as
         Executive Center One, described in EXHIBIT B.

         B. "BASE RENT": Base Rent will be paid according to the following
         schedule, subject to the provisions of Section 5. hereof. For the
         purposes of this Section 1.B., "LEASE YEAR" shall mean the twelve (12)
         month period commencing on the Commencement Date, and on each
         anniversary, of the Commencement Date.

<TABLE>
<CAPTION>
                           MONTHLY INSTALLMENTS
     PERIOD                    OF BASE RENT                     ANNUAL BASE RENT
--------------------------------------------------------------------------------
<S>                        <C>                                  <C>
FIRST LEASE YEAR
MONTH 1                       $          -0-
MONTHS 2-12                   $   19,027.42                       $  209,301.62

SECOND LEASE YEAR
MONTHS 13-24                  $   19,602.88                       $  235,234.56

THIRD LEASE YEAR
MONTHS 25-36                  $   20,187.63                       $  242,251.56

FOURTH LEASE YEAR
MONTHS 37-48                  $   20,790.93                       $  249,491.16

FIFTH LEASE YEAR
MONTHS 49-60                  $   21,412.81                       $  256,953.72

SIXTH LEASE YEAR
MONTHS 61                     $   21,412.81                       $   21,412.81

TOTAL BASE RENT                                                   $1,214,645.43
</TABLE>

         The Base Rent due for the first month during the Lease Term
         (hereinafter defined) shall be paid by Tenant to Landlord
         contemporaneously with Tenant's execution hereof.

         C. "ADDITIONAL RENT": shall mean Tenant's Pro Rata Share of Basic Costs
         (hereinafter defined) and any other sums (exclusive of Base Rent) that
         are required to be paid to Landlord by Tenant hereunder, which sums are
         deemed to be Additional Rent under this Lease. Additional Rent and Base
         Rent are sometimes collectively referred to herein as "Rent."

         D. "BASIC COSTS" shall mean all direct and indirect costs and expenses
         incurred in connection with the Building as more fully defined in
         EXHIBIT D attached hereto.

         E. "SECURITY DEPOSIT" shall mean the sum of $20,187.63 The Security
         Deposit shall be paid by Tenant to Landlord contemporaneously with
         Tenant's execution hereof

         F. "COMMENCEMENT DATE", "LEASE TERM" and "TERMINATION DATE" shall have
         the meanings set forth in subsection 1.F.(1):

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                  (1)      The "LEASE TERM" shall mean a period of sixty-one
                           (61) months commencing on the later to occur of (a)
                           AUGUST 1, 2000 (the "TARGET COMMENCEMENT DATE") and
                           (b) the date upon which Landlord's Work in the
                           Premises has been substantially completed as such
                           date is determined pursuant to Section 3.A. hereof
                           (the later to occur of such dates being defined as
                           the "COMMENCEMENT DATE"). The "TERMINATION DATE"
                           shall, unless sooner terminated as provided herein,
                           mean the last day of the Lease Term. Notwithstanding
                           the foregoing, if the Termination Date, as determined
                           herein, does not occur on the last day of a calendar
                           month, the Lease Term shall be extended by the number
                           of days necessary to cause the Termination Date to
                           occur on the last day of the last calendar month of
                           the Lease Term. Tenant shall pay Base Rent and
                           Additional Rent for such additional days at the same
                           rate payable for the portion of the last calendar
                           month immediately preceding such extension. The
                           Commencement Date, Lease Term (including any
                           extension by Landlord pursuant to this subsection
                           I.F.(1) and Termination Date shall be set forth in a
                           Commencement Letter prepared by Landlord and executed
                           by Tenant in accordance with the provisions of
                           Section 3.A. hereof.

         G. "PREMISES" shall mean the office space located within the Building
         and outlined on EXHIBIT A to this Lease.

         H. "APPROXIMATE RENTABLE AREA IN THE PREMISES" shall mean the area
         contained within the demising walls of the Premises and any other area
         designated for the exclusive use of Tenant plus an allocation of the
         Tenant's pro rata share of the square footage of the "Common Areas" and
         the "Service Areas" (as defined below). For purposes of the Lease it is
         agreed and stipulated by both Landlord and Tenant that the Approximate
         Rentable Area in the Premises is 11,138 square feet.

         I. The "APPROXIMATE RENTABLE AREA IN THE BUILDING" is 85,934 square
         feet. The Approximate Rentable Area in the Premises and the Approximate
         Rentable Area in the Building as set forth herein may be revised at
         Landlord's election if Landlord's architect determines such estimate to
         be inaccurate in any material degree after examination of the final
         drawings of the Premises and the Building.

         J. "TENANT'S PRO RATA SHARE" shall mean Twelve Point Nine Six One One
         percent (12.9611%) which is the quotient (expressed as a percentage),
         derived by dividing the Approximate Rentable Area in the Premises by
         the Approximate Rentable Area in the Building.

         K. "PERMITTED USE" shall mean general office use and no other use or
         purpose.

         N. "BROKER" shall mean Transwestern Commercial Services and The
         Staubach Company.

         O. "BUILDING MANAGER" shall mean Transwestern Commercial Services or
         such other company as Landlord shall designate from time to time.

         P. "BUILDING STANDARD", shall mean the type, brand, quality and/or
         quantity of materials Landlord designates from time-to-time to be the
         minimum quality and/or quantity to be used in the Building or the
         exclusive type, grade, quality and/or quantity of material to be used
         in the Building.

         Q. "BUSINESS DAY(S)" shall mean Mondays through Fridays exclusive of
         the normal business holidays of New Year's Day, Memorial Day,
         Independence Day, Labor Day, Thanksgiving Day and Christmas Day
         ("HOLIDAYS"). Landlord, from time to time during the Lease Term, shall
         have the right to designate additional Holidays, provided such
         additional Holidays are commonly recognized by other office buildings
         in the area where the Building is located.

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<PAGE>   6
         R. "COMMON AREAS" shall mean those areas located within the Building or
         on the Property used for corridors, elevator foyers, mail rooms,
         restrooms, mechanical rooms, elevator mechanical rooms, property
         management office, janitorial closets, electrical and telephone
         closets, vending areas, and lobby areas (whether at ground level or
         otherwise), entrances, exits, sidewalks, skywalks, tunnels, driveways,
         parking areas and parking garages and landscaped areas and other
         similar facilities provided for the common use or benefit of tenants
         generally and/or the public.

         S. "DEFAULT RATE" shall mean the lower of (i) the Prime Rate plus FOUR
         percent (4%) or (ii) the Maximum Rate.

         T. "MAXIMUM RATE" shall mean the highest rate of interest from
         time-to-time permitted under applicable federal and state law.

         U. "NORMAL BUSINESS HOURS" for the Building shall mean 8:00 a.m. to
         6:00 p.m. Mondays through Fridays, and 8:00 a.m. to 1:00 p.m. on
         Saturdays, exclusive of Holidays.

         V. "PRIME RATE" shall mean the per annum interest rate announced by and
         quoted in the Wall Street Journal from time-to-time as the prime or
         base rate.

         W. "PROPERTY" shall mean the Building and the parcel(s) of land on
         which it is located, other improvements located on such land, adjacent
         parcels of land that Landlord operates jointly with the Building, and
         other buildings and improvements located on such adjacent parcels of
         land.

         X. "SERVICE AREAS" shall mean those areas within the Building used for
         stairs, elevator shafts, flues, vents, stacks, pipe shafts and other
         vertical penetrations (but shall not include any such areas for the
         exclusive use of a particular tenant).

         Y. "NOTICE ADDRESSES" shall mean the following addresses for Tenant and
         Landlord, respectively:

         Tenant:

         Integrated Information Systems, Inc.
         11551 East Arapahoe Road, Suite 150
         Englewood, Colorado 80112
         Attn:

         with a copy to:

         Integrated Information Systems, Inc.
         1560 West Fountainhead Parkway
         Tempe, AZ 85282
         Attn: Corporate Counsel

         Landlord:

         Transwestern Commercial Services
         600 Grant Street, Suite 630
         Denver, Colorado 80203
         Attn: Property Manager

         with a copy to:

         Transwestern Investment Company
         150 North Wacker Drive, Suite 800
         Chicago, IL 60606
         Attn: Owner's Representative

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<PAGE>   7
         Payments of Rent only shall be made payable to the order of:

         MONY/BDP Office I, L.L.C.

         at the following address:

         600 Grant Street
         Suite 630
         Denver, Colorado 80203

         or such other name and address as Landlord shall, from time to time,
         designate.

2. LEASE GRANT. Subject to and upon the terms herein set forth, Landlord leases
to Tenant and Tenant leases from Landlord the Premises together with the right,
in common with others, to use the Common Areas.

3. ADJUSTMENT OF COMMENCEMENT DATE/POSSESSION.

         A. If the Lease Term, Commencement Date and Termination Date are to be
         determined in accordance with Section 1.F.(1) above, the Lease Term
         shall not commence until the later to occur of the Target Commencement
         Date and the date that Landlord has substantially completed the work to
         be performed by Landlord as set forth in the Work Letter Agreement
         attached hereto as EXHIBIT E ("LANDLORD'S WORK"); provided, however,
         that if Landlord shall be delayed in substantially completing the
         Landlord Work as a result of the occurrence of any of the following (a
         "DELAY"):

                  (1)      Tenant's failure to furnish information in accordance
                           with the Work Letter Agreement or to respond to any
                           request by Landlord for any approval of information
                           within any time period prescribed, or if no time
                           period is prescribed, then within THREE (3) Business
                           Days of such request; or

                  (2)      Tenant's insistence on materials, finishes or
                           installations that have long lead times after having
                           first been informed by Landlord, IN WRITING, that
                           such materials, finishes or installations will cause
                           a Delay; or

                  (3)      ANY MATERIAL changes in any plans and specifications
                           requested by Tenant; or

                  (4)      The performance or nonperformance by a person or
                           entity employed by on or behalf of Tenant in the
                           completion of any work in the Premises (all such work
                           and such persons or entities being subject to prior
                           approval of Landlord); or

                  (5)      Any request by Tenant that Landlord delay the
                           completion of any of the Landlord's Work; or

                  (6)      Any breach or default by Tenant in the performance of
                           Tenant's obligations under this Lease; or

                  (7)      Any delay resulting from Tenant's having taken
                           possession of the Premises for any reason prior to
                           substantial completion of the Landlord's Work; or

                  (8)      Any other delay chargeable to Tenant, its agents,
                           employees or independent contractors;

         then, for purposes of determining the Commencement Date, the date of
         substantial completion shall be deemed to be the day that said
         Landlord's Work would have been substantially completed absent any such
         Delay(s). The Landlord's Work shall be deemed to be substantially
         completed on the date that Landlord's Work has been performed (or would
         have been performed absent any Delay(s), other

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<PAGE>   8
         than any details of construction, mechanical adjustment or any other
         matter, the noncompletion of which does not materially interfere with
         Tenant's use of the Premises AND ALL PERMITS OR CERTIFICATES NECESSARY
         FOR TENANT'S OCCUPANCY OF THE PREMISES HAVE BEEN RECEIVED. The
         adjustment of the Commencement Date and, accordingly, the postponement
         of Tenant's obligation to pay Base Rent and other sums due hereunder
         shall be Tenant's sole remedy and shall constitute full settlement of
         all claims that Tenant might otherwise have against Landlord by reason
         of the Premises not being ready for occupancy by Tenant on the Target
         Commencement Date. Promptly after the determination of the Commencement
         Date, Landlord and Tenant shall enter into a letter agreement (the
         "COMMENCEMENT LETTER") on the form attached hereto as EXHIBIT H setting
         forth the Commencement Date, the Termination Date and any other dates
         that are affected by the adjustment of the Commencement Date. If this
         Lease requires Landlord to perform Landlord's Work in the Premises, the
         Commencement Letter shall identify any minor incomplete items of the
         Landlord's Work as reasonably determined by Landlord's architect (the
         "PUNCHLIST ITEMS"), which Punchlist Items Landlord shall promptly
         remedy. Tenant, within five (5) days after receipt thereof from
         Landlord, shall execute the Commencement Letter and return the same to
         Landlord. Notwithstanding anything herein to the contrary, Landlord may
         elect, by written notice to Tenant, not to adjust the Commencement Date
         as provided above if such adjustment would cause Landlord to be in
         violation of the existing rights granted to any other tenant of the
         Building. If Landlord elects not to adjust the Commencement Date, the
         Commencement Date shall be the Target Commencement Date, provided that
         Base Rent and Additional Rent shall not commence until the date that
         Landlord's Work has been substantially completed (or would have been
         substantially completed absent any Delays).

         B. By taking possession of the Premises, Tenant is deemed to have
         accepted the Premises and agreed that the Premises is in good order and
         satisfactory condition, with no representation or warranty by Landlord
         as to the condition of the Premises or the Building or suitability
         thereof for Tenant's use.

         C. Notwithstanding anything to the contrary contained in this Lease,
         Landlord shall not be obligated to tender possession of any portion of
         the Premises or other space leased by Tenant from time to time
         hereunder that, on the date possession is to be delivered, is occupied
         by a tenant or other occupant or that is subject to the rights of any
         other tenant or occupant, nor shall Landlord have any other obligations
         to Tenant under this Lease with respect to such space until the date
         Landlord: (1) recaptures such space from such existing tenant or
         occupant; and (2) regains the legal right to possession thereof. This
         Lease shall not be affected by any such failure to deliver possession
         and Tenant shall have no claim for damages against Landlord as a result
         thereof, all of which are hereby waived and released by Tenant. If
         Landlord is prevented from delivering possession of the Premises to
         Tenant due to the holding over in possession of the Premises by a
         tenant or other occupant thereof, Landlord shall use reasonable efforts
         to regain possession of the Premises in order to deliver the same to
         Tenant. If the Lease Term is to be determined pursuant to Section
         1.F.(l) hereof, the Commencement Date shall be postponed until the date
         Landlord delivers possession of the Premises to Tenant, in which event
         the Termination Date shall, at the option of Landlord, correspondingly
         be postponed on a per diem basis. If the Lease Term is to be determined
         pursuant to Section 1.F.(1), the Commencement Date and Termination Date
         shall be determined as provided in Section 3.A. above.

         D. If Tenant takes possession of the Premises prior to the Commencement
         Date, such possession shall be subject to all the terms and conditions
         of the Lease and Tenant shall pay Base Rent and Additional Rent to
         Landlord for each day of occupancy prior to the Commencement Date.
         Notwithstanding the foregoing, if Tenant, with Landlord's prior
         approval, takes possession of the Premises prior to the Commencement
         Date for the sole purpose of performing any Landlord-approved
         improvements therein or installing furniture, equipment, CABLING,
         TELECOMMUNICATIONS EQUIPMENT or other personal property of Tenant, such
         possession shall be subject to all of the terms and conditions of the
         Lease, except that Tenant shall not be required to pay Rent with
         respect to the period of time prior to the Commencement Date during
         which Tenant performs such work. Tenant shall, however, be liable for
         the cost of any services (e.g. electricity, HVAC, freight elevators)
         that are provided to Tenant or the Premises during the period of
         Tenant's possession prior to the Commencement Date. Nothing herein
         shall be construed as granting Tenant the right to take

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         possession of the Premises prior to the Commencement Date, whether for
         construction, fixturing or any other purpose, without the prior consent
         of Landlord.

4. USE. The Premises shall be used for the Permitted Use and for no other
purpose. Tenant agrees not to use or permit the use of the Premises for any
purpose which is illegal, dangerous to life, limb or property or which, in
Landlord's sole judgement, creates a nuisance or which would increase the cost
of insurance coverage with respect to the Building. Tenant will conduct its
business and control its agents, servants, employees, customers, licensees, and
invitees in such a manner as not to interfere with, annoy or disturb other
tenants or Landlord in the management of the Building and the Property. Tenant
will maintain the Premises in a clean and healthful condition, and comply with
all laws, ordinances, orders, rules and regulations of any governmental entity
with reference to the use, condition, configuration or occupancy of the
Premises. Tenant, within ten (10) days after the receipt thereof, shall provide
Landlord with copies of any notices it receives with respect to a violation or
alleged violation of any such laws, ordinances, orders, rules and regulations.
Tenant, at its expense, will comply with the rules and regulations of the
Building attached hereto as EXHIBIT C and such other rules and regulations
adopted and altered by Landlord from time-to-time and will cause all of its
agents, employees, invitees and visitors to do so. All such changes to rules and
regulations will be reasonable and shall be sent by Landlord to Tenant in
writing. ANY FURTHER REVISIONS OF THE RULES AND REGULATIONS SHALL APPLY
UNIFORMLY TO ALL TENANTS IN THE BUILDING AND SHALL BE UNIFORMLY ENFORCED.

5. BASE RENT.

         A. Tenant covenants and agrees to pay to Landlord during the Lease
         Term, without any setoff or deduction except as otherwise expressly
         provided herein, the full amount of all Base Rent and Additional Rent
         due hereunder and the full amount of all such other sums of money as
         shall become due under this Lease (including, without limitation, any
         charges for replacement of electric lamps and ballasts and any other
         services, goods or materials furnished by Landlord at Tenant's
         request), all of which hereinafter may be collectively called "RENT."
         In addition Tenant shall pay and be liable for, as Additional Rent, all
         rent, sales and use taxes or other similar taxes, if any, levied or
         imposed by any city, state, county or other governmental body having
         authority, such payments to be in addition to all other payments
         required to be paid to Landlord by Tenant under the terms and
         conditions of this Lease. Any such payments shall be paid concurrently
         with the payments of the Rent on which the tax is based. The Base Rent
         and Additional Rent for each calendar year or portion thereof during
         the Lease Term, shall be due and payable in advance in monthly
         installments of the first day of each calendar month during the Lease
         Term and any extensions or renewals hereof, and Tenant hereby agrees to
         pay such Base Rent and Additional Rent to Landlord without demand. If
         the Lease Term commences on a day other than the first day of a month
         or terminates on a day other than the last day of a month, then the
         installments of Base Rent and Additional Rent for such month or months
         shall be prorated, based on the number of days in such month. No
         payment by Tenant or receipt or acceptance by Landlord of a lesser
         amount than the correct installment of Rent due under this Lease shall
         be deemed to be other than a payment on account of the earliest Rent
         due hereunder, nor shall any endorsement or statement on any check or
         any letter accompanying any check or payment be deemed an accord and
         satisfaction, and Landlord may accept such check or payment without
         prejudice to Landlord's right to recover the balance or pursue any
         other available remedy. The acceptance by Landlord of an installment of
         Rent on a date after the due date of such payment shall not be
         construed to be a waiver of Landlord's right to declare a default for
         any other late payment. All amounts received by Landlord from Tenant
         hereunder shall be applied first to the earliest accrued and unpaid
         Rent then outstanding. Tenant's covenant to pay Rent shall be
         independent of every other covenant set forth in this Lease.

         B. To the extent allowed by law, all installments of Rent not paid when
         due shall bear interest at the Default Rate from the date due until
         paid. In addition, if Tenant fails to pay any installment of Base Rent
         and Additional Rent or any other item of Rent when due and payable
         hereunder, a "LATE CHARGE" equal to five percent (5%) of such unpaid
         amount will be due and payable immediately by Tenant to Landlord.

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<PAGE>   10
         C. The Additional Rent payable hereunder shall be adjusted from
         time-to-time in accordance with the provisions of EXHIBIT D attached
         hereto and incorporated herein for all purposes.

         D. NOTWITHSTANDING THE PROVISION SET FORTH IN SECTION 1.(B), TENANT
         SHALL BE ENTITLED TO AND EXCUSED RENT PERIOD COMMENCING UPON OCCUPANCY
         AND TERMINATING THIRTY (30) DAYS LATER, BUT IN NO EVENT SHALL THE
         EXCUSED RENT PERIOD CONTINUE BEYOND AUGUST 31, 2000.

6. SECURITY DEPOSIT. The Security Deposit shall be held by Landlord without
liability for interest and as security for the performance by Tenant of Tenant's
covenants and obligations under this Lease including but not limited to those
set forth in Section 10 hereof, it being expressly understood that the Security
Deposit shall not be considered an advance payment of Rent or a measure of
Tenant's liability for damages in case of default by Tenant. Landlord shall have
no fiduciary responsibilities or trust obligations whatsoever with regard to the
Security Deposit and shall not assume the duties of a trustee for the Security
Deposit. Landlord may, from time-to-time, without prejudice to any other remedy
and without waiving such default, use the Security Deposit to the extent
necessary to cure or attempt to cure, in whole or in part, any default of Tenant
hereunder. Following any such application of the Security Deposit, Tenant shall
pay to Landlord on demand the amount so applied in order to restore the Security
Deposit to its original amount. If Tenant is not in default at the termination
of this Lease, the balance of the Security Deposit remaining after any such
application shall be returned by Landlord to Tenant within sixty (60) days
thereafter. If Landlord transfers its interest in the Premises during the term
of this Lease, Landlord may assign the Security Deposit to the transferee and
thereafter shall have no further liability for the return of such Security
Deposit. Tenant agrees to look solely to such transferee or assignee or
successor thereof for the return of the Security Deposit. Landlord and its
successors and assigns shall not be bound by any actual or attempted assignment
or encumbrance of the Security Deposit by Tenant. Landlord shall not be required
to keep the Security Deposit separate from its other accounts.

7. SERVICES TO BE FURNISHED BY LANDLORD.

         A. Landlord agrees to furnish Tenant the following services:

                  (1)      Water for use in the lavatories on the floor(s) on
                           which the Premises is located. If Tenant desires
                           water in the Premises for any approved reason,
                           including a private lavatory or kitchen, cold water
                           shall be supplied, at Tenant's sole cost and expense,
                           from the Building water main through a line and
                           fixtures installed at Tenant's sole cost and expense
                           with the prior reasonable consent of Landlord. If
                           Tenant desires hot water in the Premises, Tenant, at
                           its sole cost and expense and subject to the prior
                           reasonable consent of Landlord, may install a hot
                           water heater in the Premises. Tenant shall be solely
                           responsible for the maintenance and repair of any
                           such water heater.

                  (2)      Central heat and air conditioning in season during
                           Normal Business Hours, at such temperatures and in
                           such amounts as are considered by Landlord, in its
                           reasonable judgment, to be standard for buildings of
                           similar class, size, age and location, or as required
                           by governmental authority. In the event that Tenant
                           requires central heat, ventilation or air
                           conditioning service at times other than Normal
                           Business Hours, such additional service shall be
                           furnished only upon the written request of Tenant
                           delivered to Landlord prior to 3:00 p.m. at least one
                           Business Day in advance of the date for which such
                           usage is requested. Tenant shall bear the entire cost
                           of additional service BASED UPON LANDLORD'S ACTUAL
                           EXPENSES (INCLUDING DEPRECIATION OF EQUIPMENT),
                           WITHOUT MARKUP CURRENTLY SET AT $65.00 PER ADDITIONAL
                           HOUR, WITH A FOUR (4) HOUR MINIMUM. SUCH HOURLY
                           CHARGE SHALL BE REASONABLY RESET OR determined by
                           Landlord from time-to-time, as Additional Rent upon
                           presentation of a statement therefor by Landlord. All
                           additional heating, ventilating and air conditioning
                           required (if any) to accommodate Tenant's design
                           shall be installed at the Tenant's expense subject to
                           Landlord's prior written approval. The cost of
                           operation and maintenance of the

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<PAGE>   11
                           equipment shall be the responsibility of the Tenant
                           and paid to Landlord as Additional Rent.

                  (3)      Maintenance and repair of all Common Areas in the
                           manner and to the extent reasonably deemed by
                           Landlord to be standard for buildings of similar
                           class, age and location.

                  (4)      Janitorial and cleaning service in and about the
                           Premises on Business Days; provided, however, if
                           Tenant's floor covering or other improvements require
                           special treatment, Tenant shall pay the additional
                           cleaning cost attributable thereto as Additional Rent
                           upon presentation of a statement therefor by
                           Landlord. Tenant shall not provide or use any other
                           janitorial or cleaning services without Landlord's
                           consent, and then only subject to the supervision of
                           Landlord and at Tenant's sole cost and responsibility
                           and by a janitor, cleaning contractor or employees at
                           all times satisfactory to Landlord.

                  (5)      Electricity to the Premises for general office use,
                           in accordance with and subject to the terms and
                           conditions of Section 11. of this Lease.

                  (6)      Fluorescent bulb replacement in the Premises
                           necessary to maintain building standard the lighting
                           as established by Landlord and fluorescent and
                           incandescent bulb and ballast replacement in the
                           Common Areas and Service Areas.

                  (7)      Passenger elevator service in common with Landlord
                           and other persons during Normal Business Hours and
                           freight elevator service in common with the Landlord
                           and other persons during Normal Business Hours. Such
                           normal elevator service, passenger or freight, if
                           furnished at other times, shall be optional with
                           Landlord and shall never be deemed a continuing
                           obligation. Landlord, however, shall provide limited
                           passenger elevator service daily at all times when
                           normal passenger elevator service is not provided.

                  (8)      Access control to the Building during other than
                           Normal Business Hours shall be provided in such form
                           as Landlord deems appropriate. Tenant shall cooperate
                           fully in Landlord's efforts to maintain access
                           control to the Building and shall follow all
                           regulations promulgated by Landlord with respect
                           thereto. Notwithstanding anything herein to the
                           contrary Tenant expressly acknowledges and agrees
                           that Landlord is not warranting the efficacy of any
                           access personnel, service, procedures or equipment
                           and that Tenant is not relying and shall not
                           hereafter rely on any such personnel service,
                           procedures or equipment. Landlord shall not be
                           responsible or liable in any manner for failure of
                           any access personnel, services, procedures or
                           equipment to prevent, control, or apprehend anyone
                           suspected of causing personal injury or damage in, on
                           or around the Project.

         B. If Tenant requests any other utilities or building services in
         addition to those identified above, or any of the above utilities or
         building services in frequency, scope, quality or quantities
         substantially greater than the standards set by Landlord for the
         Building, then Landlord shall use reasonable efforts to attempt to
         furnish Tenant with such additional utilities or building services.
         Landlord may impose a reasonable charge for such additional utilities
         or building services, which shall be paid monthly by Tenant as
         Additional Rent on the same day that the monthly installment of Base
         Rent is due. LANDLORD SHALL PROVIDE TENANT WITH SHARED ACCESS TO A
         PORTION OF THE INTERDUCT CONDUIT WHICH CURRENTLY PROVIDES ACCESS FROM
         THE FIRST FLOOR NORTH TELEPHONE ROOM TO THE STREET TELECOMMUNICATIONS
         PEDISTAL, ADJACENT TO NOME STREET, EAST OF THE BUILDING. SUCH ACCESS IS
         INTENDED TO PROVIDE TENANT WITH FUTURE DATA AND TELECOMMUNICATIONS
         CONNECTIVITY TO OTHER LANDLORD BUILDINGS IN THE LINCOLN EXECUTIVE
         CENTER. SUCH ACCESS SHALL BE SUBJECT TO ANY FUTURE AVAILABILITY IN THE
         EXISTING CONDUIT AND THE USE OF AND ACCESS TO SUCH CONDUIT SHALL BE IN
         ACCORDANCE WITH THIS SECTION 7.B.

                                       8
<PAGE>   12
         C. Except as otherwise expressly provided herein, the failure by
         Landlord to any extent to furnish, or the interruption or termination
         of these defined services in whole or in part, resulting from adherence
         to laws, regulations and administrative orders, wear, use, repairs,
         improvements, alterations or any causes beyond the reasonable control
         of Landlord shall not render Landlord liable in any respect nor be
         construed as a constructive eviction of Tenant, nor give rise to an
         abatement of Rent, nor relieve Tenant from the obligation to fulfill
         any covenant or agreement hereof. Should any of the equipment or
         machinery used in the provision of such services for any cause cease to
         function properly, Landlord shall use reasonable diligence to repair
         such equipment or machinery.

         D. NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS ARTICLE
         7, IF: (i) LANDLORD CEASES TO FURNISH ANY SERVICES IN THE BUILDING FOR
         A PERIOD IN EXCESS OF FIVE (5) CONSECUTIVE DAYS AFTER TENANT NOTIFIES
         LANDLORD OF SUCH CESSATION (THE "INTERUPTION NOTICE"); (ii) SUCH
         CESSATION DOES NOT ARISE AS A RESULT OF AN ACT OR OMISSION OF TENANT;
         (iii) SUCH CESSATION IS NOT CAUSED BY FIRE OR OTHER CASUALTY (IN WHICH
         CASE ARTICLE 19 SHALL CONTROL); (iv) THE RESTORATION OF SUCH SERVICES
         IS REASONABLY WITHIN THE CONTROL OF LANDLORD; AND (v) AS A RESULT OF
         SUCH CESSATION, THE PREMISES OR A MATERIAL PORTION THEREOF, IS RENDERED
         UNTENANTABLE (MEANING THAT TENANT IS UNABLE TO USE THE PREMISES IN THE
         NORMAL COURSE OF ITS BUSINESS) AND TENANT IN FACT CEASES TO USE THE
         PREMISES, OR MATERIAL PORTION THEREOF, THEN TENANT, AS ITS SOLE REMEDY,
         SHALL BE ENTITLED TO RECEIVE AN ABATEMENT OF BASE RENT PAYABLE
         HEREUNDER DURING THE PERIOD BEGINNING ON THE SIXTH (6TH) CONSECUTIVE
         DAY OF SUCH CESSATION AND ENDING ON THE DAY WHEN THE SERVICE IN
         QUESTION HAS BEEN RESTORED. IN THE EVENT THE ENTIRE PREMISES HAS BEEN
         RENDERED UNTENANTABLE BY THE CESSATION IN SERVICE, THE AMOUNT OF
         ABATEMENT THAT TENANT IS ENTITLED TO RECEIVE SHALL BE PRORATED BASED
         UPON THE PERCENTAGES OF THE PREMISES SO RENDERED UNTENANTABLE AND NOT
         USED BY TENANT.

8. LEASEHOLD IMPROVEMENTS/TENANT'S PROPERTY. All fixtures, equipment,
improvements and appurtenances attached to, or built into, the Premises at the
commencement of or during the Lease Term, whether or not by, or at the expense
of, Tenant ("LEASEHOLD IMPROVEMENTS"), shall be and remain a part of the
Premises; shall be the property of Landlord; and shall not be removed by Tenant
except as expressly provided herein. All unattached and moveable partitions,
trade fixtures, moveable equipment or furniture located in the Premises and
acquired by or for the account of Tenant, without expense to Landlord, which can
be removed without structural damage to the Building or Premises, and all
personalty brought into the Premises by Tenant ("TENANT'S PROPERTY") shall be
owned and insured by Tenant. Landlord may, nonetheless, within one (1) month
after, the expiration or earlier termination of this Lease or Tenant's right to
possession, require Tenant to remove any Leasehold Improvements performed by or
for the benefit of Tenant and all electronic, phone and data cabling as are
designated by Landlord (the "REQUIRED REMOVABLES") at Tenant's sole cost. In the
event that Landlord so elects, Tenant shall remove such Required Removables
within ten (10) days after notice from Landlord, provided that in no event shall
Tenant be required to remove such Required Removables prior to the expiration or
earlier termination of this Lease or Tenant's right to possession. In addition
to Tenant's obligation to remove the Required Removables, Tenant shall repair
any damage caused by such removal and perform such other work as is reasonably
necessary to restore the Premises to a "move in" condition, NORMAL WEAR AND TEAR
EXCEPTED. If tenant fails to remove any specified Required Removables or to
perform any required repairs and restoration within the time period specified
above, Landlord, at Tenant's sole cost and expense, may remove the Required
Removables (and repair any damage occasioned thereby) and dispose thereof or
deliver the Required Removables to any other place of business of Tenant, or
warehouse the same, and Tenant shall pay the cost of such removal, repair,
delivery, or warehousing of the Required Removables within five (5) days after
demand from Landlord.

                                       9
<PAGE>   13
9. SIGNAGE. Landlord shall provide and install, at LANDLORD'S cost, all letters
or numerals on the exterior of the Premises; all such letters and numerals shall
be in the standard graphics for the Building and no others shall be used or
permitted on the Premises without Landlord's prior written consent. In addition,
Landlord will list Tenant's name in the Building's directory, if any, located in
the lobby of the Building, AT NO ADDITIONAL EXPENSE TO TENANT.

10. REPAIRS AND ALTERATIONS BY TENANT.

         A. Except to the extent such obligations are imposed upon Landlord
         hereunder, Tenant shall, at its sole cost and expense, maintain the
         Premises in good order, condition and repair throughout the entire
         Lease Term, ordinary wear and tear excepted. Tenant agrees to keep the
         areas visible from outside the Premises in a neat, clean and attractive
         condition at all times. Tenant shall be responsible for all repairs
         replacements and alterations in and to the Premises, Building and
         Property and the facilities and systems thereof, the need for which
         arises out of (1) Tenant's use or occupancy of the Premises, (2) the
         installation, removal, use or operation of Tenant's Property (as
         defined in Section 8. above), (3) the moving of Tenant's Property into
         or out of the Building, or (4) the act, omission, misuse or negligence
         of Tenant, its agents, contractors, employees or invitees. All such
         repairs, replacements or alterations shall be performed in accordance
         with Section 10.B. below and the rules, policies and procedures
         reasonably enacted by Landlord from time to time for the performance of
         work in the Building. If Tenant fails to maintain the Premises in good
         order, condition and repair, Landlord shall give Tenant notice to
         perform such acts as are reasonably required to so maintain the
         Premises. If Tenant fails to promptly commence such work and diligently
         pursue it to its completion, then Landlord may, at its option, make
         such repairs, and Tenant shall pay the cost thereof to Landlord on
         demand as Additional Rent, together with an administration charge in an
         amount equal to FIVE percent (5%) of the cost of such repairs. Landlord
         shall, at its expense (except as included in Basic Costs) keep and
         maintain in good repair and working order and make all repairs to and
         perform necessary maintenance upon: (a) all structural elements of the
         Building; and (b) all mechanical, electrical and plumbing systems that
         serve the Building in general; and (c) the Building facilities common
         to all tenants including but not limited to, the ceilings, walls and
         floors in the Common Areas.

         B. Tenant shall not make or allow to be made any MATERIAL alterations,
         additions or improvements to the Premises, without first obtaining the
         written consent of Landlord in each such instance, which consent may be
         refused or given on such conditions as Landlord may elect. Prior to
         commencing any such work and as a condition to obtaining Landlord's
         consent, Tenant must furnish Landlord with plans and specifications
         acceptable to Landlord; names and addresses of contractors reasonably
         acceptable to Landlord; copies of contracts; necessary permits and
         approvals; evidence of contractor's and subcontractor's insurance in
         accordance with Section 15. hereof; and a payment bond or other
         security, all in form and amount satisfactory to Landlord. Tenant shall
         be responsible for insuring that all such persons procure and maintain
         insurance coverage against such risks, in such amounts and with such
         companies as Landlord may require, including, but not limited to,
         Builder's Risk and Worker's Compensation insurance. All such
         improvements, alterations or additions shall be constructed in a good
         and workmanlike manner using Building Standard materials or other new
         materials of equal or greater quantity. Landlord, to the extent
         reasonably necessary to avoid any disruption to the tenants and
         occupants of the Building, shall have the right to designate the time
         when any such alterations, additions and improvements may be performed
         and to otherwise designate reasonable rules, regulations and procedures
         for the performance of work in the Building. Upon completion, Tenant
         shall furnish "as-built" plans, contractor's affidavits and full and
         final waivers of lien and receipted bills covering all labor and
         materials. All improvements, alterations and additions shall comply
         with the insurance requirements, codes, ordinances, laws and
         regulations, including without limitation, the Americans with
         Disabilities Act. Tenant shall reimburse Landlord upon demand for all
         REASONABLE sums, if any, expended by Landlord for third party
         examination of the architectural, mechanical, electrical and plumbing
         plans for any alterations, additions or improvements. In addition, if
         Landlord so requests, Landlord shall be entitled to oversee the
         construction of any alterations, additions or improvements that may
         affect the structure of the Building or any of the mechanical,
         electrical, plumbing or life safety systems of the Building. In the

                                       10
<PAGE>   14
         event Landlord elects to oversee such work, Landlord shall be entitled
         to receive a fee for such oversight in an amount equal to FIVE percent
         (5%) of the cost of such alterations, additions or improvements.
         Landlord's approval of Tenant's plans and specifications for any work
         performed for or on behalf of Tenant shall not be deemed to be
         representation by Landlord that such plans and specifications comply
         with applicable insurance requirements, building codes, ordinances,
         laws or regulations or that the alterations, additions and improvements
         constructed in accordance with such plans and specifications will be
         adequate for Tenant's use.

         C. At least five (5) days prior to the commencement of any work
         permitted to be done by persons requested by the Tenant on the
         Premises, the Tenant shall notify the Landlord of the proposed work and
         the names and addresses of the persons supplying labor and materials
         for the proposed work so that the Landlord may avail itself of the
         provisions of statutes such as Section 38_22_105(2) of the Colorado
         Revised Statutes (1973). During any such work on the Premises, the
         Landlord, or its representatives, shall have the right to go upon and
         inspect the Premises at all reasonable times, and shall have the right
         to post and keep posted thereon notices such as those provided for by
         Section 38_22_105(2) C.R.S. (1973) or to take any further action which
         the Landlord may deem to be proper for the protection of the Landlord's
         interest in the Premises.

11. USE OF ELECTRICAL SERVICES BY TENANT.

         A. All electricity used by Tenant in the Premises shall, at Landlord's
         option, be paid for by Tenant either: (1) through inclusion in Base
         Rent and Basic Costs (except as provided in Section 11.B. below with
         respect to excess useage. Landlord shall have the right at any time and
         from time-to-time during the Lease Term to contract for electricity
         service from such providers of such services as Landlord shall elect
         (each being an "ELECTRIC SERVICE PROVIDER"). Tenant shall cooperate
         with Landlord, and the applicable Electric Service Provider, at all
         times and, as reasonably necessary, shall allow Landlord and such
         Electric Service Provider reasonable access to the Building's electric
         lines, feeders, risers, wiring, and any other machinery within the
         Premises. Landlord shall in no way be liable or responsible for any
         loss, damage, or expense that Tenant may sustain or incur by reason of
         any change, failure, interference, disruption, or defect in the supply
         or character of the electric energy furnished to the Premises, or if
         the quantity or character of the electric energy supplied by the
         Electric Service Provider is no longer available or suitable for
         Tenant's requirements, and no such change, failure, defect,
         unavailability, or unsuitability shall constitute an actual or
         constructive eviction, in whole or in part, or entitle Tenant to any
         abatement or diminution of rent, or relieve Tenant from any of its
         obligations under the Lease.

         B. Tenant's use of electrical services furnished by Landlord shall not
         exceed in voltage, rated capacity, or overall load that which is
         standard for the Building. In the event Tenant shall request that it be
         allowed to consume electrical services in excess of Building Standard,
         Landlord may refuse to consent to such usage or may consent upon such
         conditions as Landlord reasonably elects (including the installation of
         utility service upgrades, submeters, air handlers or cooling units),
         and all such additional useage (to the extent permitted by law),
         installation and maintenance thereof shall be paid for by Tenant as
         Additional Rent. Landlord, at any time during the Lease Term, shall
         have the right to separately meter electrical useage for the Premises
         or to measure electrical useage by survey or any other method that
         Landlord, in its reasonable judgment, deems appropriate.

12. ENTRY BY LANDLORD. Tenant shall permit Landlord or its agents or
representatives to enter into and upon any part of the Premises to inspect the
same, or to show the Premises to prospective purchasers, mortgagees, tenants
(during the last SIX (6) months of the Lease Term or earlier in connection with
a potential relocation) or insurers, or to clean or make repairs, alterations,
or additions thereto, including any work that Landlord deems necessary for the
safety, protection or preservation of the Building or any occupants thereof, or
to facilitate repairs, alterations or additions to the Building or any other
tenant's premises. Except for any entry by Landlord in an emergency situation or
to provide normal

                                       11
<PAGE>   15
cleaning and janitorial service, Landlord shall provide Tenant with reasonable
prior notice of any entry into the premises, which notice may be given verbally.
Landlord shall have the right, WITH FORTY-EIGHT HOURS (48) HOURS PRIOR WRITTEN
NOTICE TO TENANT (EXCEPT IN THE EVENT OF AN EMERGENCY), to temporarily close the
Premises or the Building to perform repairs, alterations or additions in the
Premises or the Building, provided that Landlord shall use reasonable efforts to
perform all such work on weekends and after Normal Business Hours. Entry by
Landlord hereunder shall not constitute a constructive eviction or entitle
Tenant to any abatement or reduction of Rent by reason thereof.

13. ASSIGNMENT AND SUBLETTING

         A. Except in connection with a Permitted Transfer (defined in Section
         13.E. below), Tenant shall not assign, sublease, transfer or encumber
         any interest in this Lease or allow any third party to use any portion
         of the Premises (collectively or individually, a "TRANSFER") without
         the prior written consent of Landlord, which consent shall not be
         unreasonably withheld. Without limitation, it is agreed that Landlord's
         consent shall not be considered unreasonably withheld if: (1) the
         proposed transferee's financial condition does not meet the criteria
         Landlord uses to select Building tenants having similar leasehold
         obligations; (2) the proposed transferee's business is not suitable for
         the Building considering the business of the other tenants and the
         Building's prestige, or would result in a violation of another tenant's
         rights; (3) the proposed transferee is a governmental agency or
         occupant of the Building; (4) Tenant is in default beyond any
         applicable notice and cure period; or (5) any portion of the Building
         or the Premises would likely become subject to additional or different
         laws as a consequence of the proposed Transfer. Any attempted Transfer
         in violation of this Section 13, shall, exercisable in Landlord's sole
         and absolute discretion, be voidable. Consent by Landlord to one or
         more Transfer(s) shall not operate as a waiver of Landlord's rights to
         approve any subsequent Transfer(s). IN NO EVENT SHALL ANY TRANSFER OR
         PERMITTED TRANSFER RELEASE OR RELIEVE TENANT FROM ANY OBLIGATION UNDER
         THIS LEASE OR ANY LIABILITY HEREUNDER.

         B. If Tenant requests Landlord's consent to a Transfer, Tenant shall
         submit to Landlord financial statements for the proposed transferee, a
         complete copy of the proposed assignment, sublease and other
         information as Landlord may reasonably request. Landlord shall within
         TEN (10) days after Landlord's receipt of the required information and
         documentation either: (1) consent or reasonably refuse consent to the
         Transfer in writing; (2) in the event of a proposed assignment of this
         Lease or a proposed sublease of the entire Premises for the entire
         remaining term of this Lease, terminate this Lease effective the first
         to occur of ninety (90) days following written notice of such
         termination or the date that the proposed Transfer would have come into
         effect. If Landlord shall fail to notify Tenant in writing of its
         decision within such TEN (10) days period after the later of the date
         Landlord is notified in writing of the proposed Transfer or the date
         Landlord has received all required information concerning the proposed
         transferee and the proposed Transfer, Landlord shall be deemed to have
         refused to consent to such Transfer, and to have elected to keep this
         Lease in full force and effect. Tenant shall pay Landlord a review fee
         of $500 for Landlord's review of any Permitted Transfer or requested
         Transfer. In addition, Tenant shall reimburse Landlord for its actual
         reasonable costs and expenses (including without limitation reasonable
         attorney's fees) incurred by Landlord in connection with Landlord's
         review of such requested Transfer or Permitted Transfer.

         C. Tenant shall pay to Landlord fifty percent (50%) of all cash and
         other consideration which Tenant receives, LESS REASONABLE BROKERAGE
         COMMISSIONS AND ADMINISTRATIVE FEES, as a result of a Transfer that is
         in excess of the rent payable to Landlord hereunder for the portion of
         the Premises and Term covered by the Transfer within ten (10) days
         following receipt thereof by Tenant. If Tenant is in Monetary Default
         (defined in Section 22. below), Landlord may require that all sublease
         payments be made directly to Landlord, in which case Tenant shall
         receive a credit against rent in the amount of any payments received
         (less Landlord's share of any excess).

         D. Except as provided below with respect to a Permitted Transfer, if
         Tenant is a corporation, limited liability company, partnership or
         similar entity, and the entity which owns or controls a majority of

                                       12
<PAGE>   16
         the voting shares/rights at the time changes for any reason (including
         but not limited to a merger, consolidation or reorganization), such
         change of ownership or control shall constitute a Transfer. The
         foregoing shall not apply so long as Tenant is an entity whose
         outstanding stock is listed on a nationally recognized security
         exchange, or if at least eighty percent (80%) of its voting stock is
         owned by another entity, the voting stock of which is so listed.

         E. Tenant may assign its entire interest under this Lease or sublet the
         Premises to any entity controlling or controlled by or under common
         control with Tenant or to any successor to Tenant by purchase, merger,
         consolidation or reorganization (hereinafter, collectively, referred to
         as "PERMITTED TRANSFER") without the consent of Landlord, provided: (1)
         Tenant is not in default under this Lease; (2) if such proposed
         transferee is a successor to Tenant by purchase, said proposed
         transferee shall acquire all or substantially all of the stock or
         assets of Tenant's business or, if such proposed transferee shall
         acquire all or substantially all of the stock or assets of Tenant's
         business or, if such proposed transferee is a successor to Tenant by
         merger, consolidation or reorganization, the continuing or surviving
         corporation shall own all or substantially all of the assets of Tenant;
         (3) such proposed transferee shall have a net worth which is at least
         equal to the greater of Tenant's net worth at the date of this Lease or
         Tenant's net worth as of the day prior to the proposed purchase,
         merger, consolidation or reorganization as evidenced to Landlord's
         reasonable satisfaction; (4) such proposed transferee operates the
         business in the Premises for the Permitted Use and no other purpose;
         and (5) Tenant shall give Landlord written notice at least thirty (30)
         days prior to the effective date of the proposed purchase, merger,
         consolidation or reorganization.

         F. Tenant agrees that in the event Landlord withholds its consent to
         any Transfer contrary to the provisions of this Section 13, Tenant's
         sole remedy shall be to seek an injunction in equity or compel
         performance by Landlord to give its consent and Tenant expressly waives
         any right to damages in the event of such withholding by Landlord of
         its consent.

14. MECHANIC'S LIENS. Tenant will not permit any mechanic's liens or other liens
to be placed upon the Premises, the Building, or the Property and nothing in
this Lease shall be deemed or construed in any way as constituting the consent
or request of Landlord, express or implied, by inference or otherwise, to any
person for the performance of any labor or the furnishing of any materials to
the Premises, the Building, or the Property or any part thereof, nor as giving
Tenant any right, power, or authority to contract for or permit the rendering of
any services or the furnishing of any materials that would give rise to any
mechanic's or other liens against the Premises, the Building, or the Property.
In the event any such lien is attached to the Premises, the Building, or the
Property, then, in addition to any other right or remedy of Landlord, Landlord
may, but shall not be obligated to, discharge the same. Any amount paid by
Landlord for any of the aforesaid purposes including, but not limited to,
reasonable attorneys' fees, shall be paid by Tenant to Landlord promptly on
demand as Additional Rent. Tenant shall within ten (10) days of receiving such
notice of lien or claim (a) have such lien or claim released or (b) deliver to
Landlord a bond in form, content, amount and issued by surety, satisfactory to
Landlord, indemnifying, protecting, defending and holding harmless the
Indemnities against all costs and liabilities resulting from such lien or claim
and the foreclosure or attempted foreclosure thereof. Tenant's failure to comply
with the provisions of the foregoing sentence shall be deemed an Event of
Default under Section 22 hereof entitling Landlord to exercise all of its
remedies therefor without the requirement of any additional notice or cure
period.

15. INSURANCE.

         A. Landlord shall maintain such insurance on the Building and the
         Premises (other than on Tenant's Property or on any additional
         improvements constructed in the Premises by Tenant), and such liability
         insurance in such amounts as Landlord elects. The cost of such
         insurance shall be included as a part of the Basic Costs, and payments
         for losses thereunder shall be made solely to Landlord or the
         mortgagees of Landlord as their interests shall appear.

         B. Tenant shall maintain at its expense, (1) in an amount equal to full
         replacement cost, special form (formerly known as all risk) property
         insurance on all of its personal property, including removable trade
         fixtures and leasehold and tenant improvements, and Tenant's Property
         located in the

                                       13
<PAGE>   17
         Premises and in such additional amounts as are required to meet
         Tenant's obligations pursuant to Section 18 hereof and with deductibles
         in an amount reasonably satisfactory to Landlord, and (ii) a policy or
         policies of commercial general liability insurance (including
         endorsement or separate policy for owned or non-owned automobile
         liability) with respect to its activities in the Building and on the
         Property, with the premiums thereon fully paid on or before the due
         date, in an amount of not less than $2,000,000 per occurrence per
         person coverage for bodily injury, property damage, personal injury or
         combination thereof (the term "personal injury" as used herein means,
         without limitation, false arrest, detention or imprisonment, malicious
         prosecution, wrongful entry, liable and slander), provided that if only
         single limit coverage is available it shall be for at least $2,000,000
         per occurrence with an umbrella policy of at least $5,000,000 combined
         single limit per occurrence. Tenant's insurance policies shall name
         Landlord and Building Manager as additional insureds and shall include
         coverage for the contractual liability of Tenant to indemnify Landlord
         and Building Manager pursuant to Section 16 of this Lease and shall
         have deductibles in an amount reasonably satisfactory to Landlord.
         Prior to Tenant's taking possession of the Premises, Tenant shall
         furnish evidence satisfactory to Landlord of the maintenance and timely
         renewal of such insurance, and Tenant shall obtain and deliver to
         Landlord a written obligation on the part of each insurer to notify
         Landlord at least thirty (30) days prior to the modification,
         cancellation or expiration of such insurance policies. In the event
         Tenant shall not have delivered to Landlord a policy or certificate
         evidencing such insurance at least thirty (30) days prior to the
         expiration date of each expiring policy, Landlord may obtain such
         insurance as Landlord may reasonably require to protect Landlord's
         interest (which obtaining of insurance shall not be deemed to be a
         waiver of Tenant's default hereunder). The cost to Landlord of
         obtaining such policies, plus an administrative fee in tile amount of
         fifteen percent (15%) of the cost of such policies shall be paid by
         Tenant to Landlord as Additional Rent upon demand.

         C. The insurance requirements set forth in this Section 15 are
         independent of the waiver, indemnification, and other obligations under
         this Lease and will not be construed or interpreted in any way to
         restrict, limit or modify the waiver, indemnification and other
         obligations or to in any way limit any party's liability under this
         Lease. In addition to the requirements set forth in Sections 15 and 16,
         the insurance required of Tenant under this Lease must be issued by an
         insurance company with a rating of no less than A-VIII in the current
         Best's Insurance Guide, or A- in the current Standard & Poor Insurance
         Solvency Review, or in that is otherwise acceptable to Landlord, and
         admitted to engage in the business of insurance in the state in which
         the Building is located; be primary insurance for all claims under it
         and provide that any insurance carried by Landlord and Landlord's
         lenders is strictly excess, secondary and noncontributing with any
         insurance carried by Tenant; and provide that insurance may not be
         cancelled, nonrenewed or the subject of material change in coverage of
         available limits of coverage, except upon thirty (30) days prior
         written notice to Landlord and Landlord's lenders. Tenant will deliver
         either a duplicate original or a legally enforceable certificate of
         insurance on all policies procured by Tenant in compliance with
         Tenant's obligations under this Lease, together with evidence
         satisfactory to Landlord of the payment of the premiums therefor, to
         Landlord on or before the date Tenant first occupies any portion of the
         Premises, at least thirty (30) days before the expiration date of any
         policy and upon the renewal of any policy. Landlord must give its prior
         written approval to all deductibles and self-insured retentions under
         Tenant's policies. Tenant may comply with its insurance coverage
         requirements through a blanket policy, provided Tenant, at Tenant's
         sole expense, procures a "per location" endorsement, or equivalent
         reasonably acceptable to Landlord, so that the general aggregate and
         other limits apply separately and specifically to the Premises.

         D. If Tenant's business operations, conduct or use of the Premises or
         any other part of the Property causes an increase in the premium for
         any insurance policy carried by Landlord, Tenant will, within THIRTY
         (30) days after receipt of notice from Landlord, reimburse Landlord for
         the entire increase.

         E. Neither Landlord nor Tenant shall be liable (by way of subrogation
         or otherwise) to the other party (or to any insurance company insuring
         the other party) for any personal injury or loss or damage to any of
         the property of Landlord or Tenant, as the case may be, with respect to
         their respective

                                       14
<PAGE>   18
         property, the Building, the Property or the Premises or any addition or
         improvements thereto, or any contents therein, to the extent covered by
         insurance carried or required to be carried by a party hereto even
         though such loss might have been occasioned by the negligence or
         willful acts or omissions of the Landlord or Tenant or their respective
         employees, agents, contractors or invitees. Since this mutual waiver
         will preclude the assignment of any such claim by subrogation (or
         otherwise) to an insurance company (or any other person), Landlord and
         Tenant each agree to give each insurance company which has issued, or
         on the future may issue, policies of insurance, with respect to the
         items covered by this waiver, written notice of the terms of this
         mutual waiver, and to have such insurance policies properly endorsed,
         if necessary, to prevent the invalidation of any of the coverage
         provided by such insurance policies by reason of such mutual waiver.
         For the purpose of the foregoing waiver, the amount of any deductible
         applicable to any loss or damage shall be deemed covered by, and
         recoverable by the insured under the insurance policy to which such
         deductible relates. In the event that Tenant is permitted to and
         self-insures any risk for which insurance is required to be carried
         under this Lease, or if Tenant fails to carry any insurance required to
         be carried by Tenant pursuant to this Lease, then all loss or damage to
         Tenant, its leasehold interest, its business, its property, the
         Premises or any additions or improvements thereto or contents thereof
         shall be deemed covered by and recoverable by Tenant under valid and
         collectible policies of insurance. Notwithstanding anything to the
         contrary herein, Landlord shall not be liable to the Tenant or any
         insurance company (by way of subrogation or otherwise) insuring the
         Tenant for any loss or damage to any property, or bodily injury or
         personal injury or any resulting loss of income or losses from worker's
         compensation laws and benefits, even though such loss or damage might
         have been occasioned by the negligence of Landlord, its agents or
         employees, or Building Manager, if any such loss or damage was required
         to be covered by insurance pursuant to this Lease.

16. INDEMNITY. TO THE EXTENT NOT CAUSED BY THE GROSS NEGLIGENCE OR WILLFUL
MISCONDUCT OF LANDLORD nor Building Manager nor any of their respective
officers, directors, employees, members, managers, or agents shall be liable to
Tenant, or to Tenant's agents, servants, employees, customers, licensees, or
invitees for any injury to person or damage to property caused by any act,
omission, or neglect of Tenant, its agents, servants, employees, customers,
invitees, licensees or by any other person entering the Building or upon the
Property under the invitation of Tenant or arising out of the use of the
Property, Building or Premises by Tenant and the conduct of its business or out
of a default by Tenant in the performance of its obligations hereunder. TO THE
EXTENT NOT EXPRESSLY PROHIBITED BY LAW, LANDLORD AND TENANT EACH (IN EITHER
CASE, THE "INDEMNITOR") AGREE TO HOLD HARMLESS AND INDEMNIFY THE OTHER AND THE
OTHER'S AGENTS, PARTNERS, SHAREHOLDERS, OFFICERS, DIRECTORS, BENEFICIARIES AND
EMPLOYEES (COLLECTIVELY, THE "INDEMNITEES") FROM ANY LOSSES, DAMAGES, JUDGMENTS,
CLAIMS, EXPENSES, COSTS AND LIABILITIES IMPOSED UPON OR INCURRED BY OR ASSERTED
AGAINST THE INDEMNITEES, INCLUDING REASONABLE ATTORNEYS' FEES AND EXPENSES, FOR
DEATH OR INJURY TO THIRD PARTIES OTHER THAN INDEMNITEES THAT MAY ARISE FROM
WILLFULL MISCONDUCT OF INDEMNITOR OR ANY OF INDEMNITOR'S AGENTS, PARTNERS OR
EMPLOYEES. SUCH THIRD PARTIES SHALL NOT BE DEEMED THIRD PARTY BENEFICIARIES OF
THIS AGREEMENT. IN CASE ANY ACTION, SUIT OR PROCEEDING IS BROUGHT AGAINST ANY OF
THE INDEMNITEES BY REASON OF ANY SUCH ACT OF INDEMNITOR OR ANY OF INDEMNITOR'S
AGENTS OR EMPLOYEES, THEN INDEMNITOR WILL, AT INDEMNITOR'S EXPENSE AND AT THE
OPTION OF SAID INDEMNITEES, BY COUNSEL REASONABLY APPROVED BY SAID INDEMNITEES,
RESIST AND DEFEND SUCH ACTION, SUIT OR PROCEEDING. Such indemnity for the
benefit of Indemnitees shall be enforceable even if Indemnitees, or any one or
more of them have or has caused or participated in causing such liability and
claims by their joint or concurrent

                                       15
<PAGE>   19
acts, negligent or intentional, or otherwise. Notwithstanding the terms of this
Lease to the contrary, the terms of this Section shall survive the expiration or
earlier termination of this Lease.

17. DAMAGES FROM CERTAIN CAUSES. To the extent not expressly prohibited by law,
Landlord shall not be liable to Tenant or Tenant's employees, contractors,
agents, invitees or customers, for any injury to person or damage to property
sustained by Tenant or any such party or any other person claiming through
Tenant resulting from any accident or occurrence in the Premises or any other
portion of the Building caused by the Premises or any other portion of the
Building becoming out of repair or by defect in or failure of equipment, pipes,
or wiring, or by broken glass, or by the backing up of drains, or by gas, water,
steam, electricity, or oil leaking, escaping or flowing into the Premises
(except where due to Landlord's willful failure to make repairs required to be
made pursuant to other provisions of this Lease, after the expiration of a
reasonable time after written notice to Landlord of the need for such repairs),
nor shall Landlord be liable to Tenant for any loss or damage that may be
occasioned by or through the acts or omissions of other tenants of the Building
or of any other persons whomsoever, including, but not limited to riot, strike,
insurrection, war, court order, requisition, order of any governmental body or
authority, acts of God, fire or theft.

18. CASUALTY DAMAGE. If the Premises or any part thereof shall be damaged by
fire or other casualty, Tenant shall give prompt written notice thereof to
Landlord. In case the Building shall be so damaged that substantial alteration
or reconstruction of the Building shall, in Landlord's sole opinion, be required
(whether or not the Premises shall have been damaged by such casualty) or in the
event there is less than two (2) years of the Lease Term remaining or in the
event Landlord's mortgagee should require that the insurance proceeds payable as
a result of a casualty be applied to the payment of the mortgage debt or in the
event of any material uninsured loss to the Building, Landlord may, at its
option, terminate this Lease, by notifying Tenant in writing of such termination
within SIXTY (60) days after the date of such casualty. If Landlord does not
thus elect to terminate this Lease, Landlord shall commence and proceed with
reasonable diligence to restore the Building, and the improvements located
within the Premises, if any, for which Landlord had financial responsibility
pursuant to the Work Letter Agreement attached hereto as EXHIBIT E (except that
Landlord shall not be responsible for delays not within the control of Landlord)
to substantially the same condition in which it was immediately prior to the
happening of the casualty. Notwithstanding the foregoing, Landlord's obligation
to restore the Building, and the improvements located within the Premises, if
any, for which Landlord had financial responsibility pursuant to the Work Letter
Agreement, shall not require Landlord to expend for such repair and restoration
work more than the insurance proceeds actually received by the Landlord as a
result of the casualty and Landlord's obligation to restore shall be further
limited so that Landlord shall not be required to expend for the repair and
restoration of the improvements located within the Premises, if any, for which
Landlord had financial responsibility pursuant to the Work Letter Agreement,
more than the dollar amount of the Allowance, if any, described in the Work
Letter Agreement. When the repairs described in the preceding two sentences have
been completed by Landlord, Tenant shall complete the restoration of all
improvements, including furniture, fixtures and equipment, which are necessary
to permit Tenant's reoccupancy of the Premises. Except as set forth above, all
cost and expense of reconstructing the Premises shall be borne by Tenant, and
Tenant shall present Landlord with evidence satisfactory to Landlord of Tenant's
ability to pay such costs prior to Landlord's commencement of repair and
restoration of the Premises. Landlord shall not be liable for any inconvenience
or annoyance to Tenant or injury to the business of Tenant resulting in any way
from such damage or the repair thereof, except that, subject to the provisions
of the next sentence, Landlord shall allow Tenant a fair diminution of Rent
during the time and to the extent the Premises are unfit for occupancy. If the
Premises or any other portion of the Property is damaged by fire or other
casualty resulting from the fault or negligence of Tenant or any of Tenant's
agents, employees, or invitees, the rent hereunder shall not be diminished
during the repair of such damage and Tenant shall be liable to Landlord for the
cost of the repair and restoration of the Property caused thereby to the extent
such cost and expense is not covered by insurance proceeds.

NOTWITHSTANDING ANYTHING IN THIS ARTICLE 18 TO THE CONTRARY, IF ALL OR ANY
PORTION OF THE PREMISES SHALL BE MADE UNTENANTABLE BY A FIRE OR OTHER CASUALTY,
LANDLORD SHALL WITH REASONABLE PROMPTNESS, CAUSE AN ARCHITECT OR GENERAL
CONTRACTOR SELECTED BY LANDLORD TO ESTIMATE

                                       16

<PAGE>   20
THE AMOUNT OF TIME REQUIRED TO SUBSTANTIALLY COMPLETE REPAIR AND RESTORATION OF
THE PREMISES AND MAKE THE PREMISES TENANTABLE AGAIN, USING STANDARD WORKING
METHODS (THE "COMPLETION ESTIMATE"). IF THE COMPLETION ESTIMATE INDICATES THAT
THE PREMISES CANNOT BE MADE TENANTABLE WITHIN TWELVE (12) MONTHS FROM THE DATE
THE REPAIR AND RESTORATION IS STARTED, EITHER PARTY SHALL HAVE THE RIGHT TO
TERMINATE THIS LEASE BY GIVING WRITTEN NOTICE TO THE OTHER OF SUCH ELECTION
WITHIN TEN (10) DAYS AFTER ITS RECEIPT OF THE COMPLETION ESTIMATE. TENANT,
HOWEVER, SHALL NOT HAVE THE RIGHT TO TERMINATE THIS LEASE IN THE EVENT THAT THE
FIRE OR CASUALTY IN QUESTION WAS CAUSED BY THE NEGLIGENCE OR INTENTIONAL
MISCONDUCT OF TENANT. IF THE COMPLETION ESTIMATE INDICATES THAT THE PREMISES CAN
BE MADE TENANTABLE WITHIN TWELVE (12) MONTHS FROM THE DATE THE REPAIR AND
RESTORATION IS STARTED AND LANDLORD HAS NOT OTHERWISE EXERCISED ITS RIGHT TO
TERMINATE THE LEASE PURSUANT TO THE TERMS HEREOF, OR IF THE COMPLETION ESTIMATE
INDICATES THAT THE PREMISES CANNOT BE MADE TENANTABLE WITHIN TWELVE (12) MONTHS,
BUT NEITHER PARTY TERMINATES THIS LEASE PURSUANT TO THIS ARTICLE 18, LANDLORD
SHALL PROCEED WITH REASONABLE PROMPTNESS TO REPAIR AND RESTORE THE PREMISES.

19. CONDEMNATION. If the whole or any substantial part of the Premises or if the
Building or any portion thereof which would leave the remainder of the Building
unsuitable for use as an office building comparable to its use on the
Commencement Date, or if the land on which the Building is located or any
material portion thereof, shall be taken or condemned for any public or
quasi-public use under governmental law, ordinance or regulation, or by right of
eminent domain, or by private purchase in lieu thereof, then Landlord may, at
its option, terminate this Lease and the rent shall be abated during the
unexpired portion of this Lease, effective when the physical taking of said
Premises or said portion of the Building or land shall occur. In the event this
Lease is not terminated, the rent for any portion of the Premises so taken or
condemned shall be abated during the unexpired term of this Lease effective when
the physical taking of said portion of the Premises shall occur. All
compensation awarded for any such taking or condemnation, or sale proceeds in
lieu thereof, shall be the property of Landlord, and Tenant shall have no claim
thereto, the same being hereby expressly waived by Tenant, except for any
portions of such award or proceeds which are specifically allocated by the
condemning or purchasing party for the taking of or damage to trade fixtures of
Tenant, which Tenant specifically reserves to itself.

20. HAZARDOUS SUBSTANCES.

         A. Tenant hereby represents and covenants to Landlord the following: No
         toxic or hazardous substances or wastes, pollutants or contaminants
         (including, without limitation, asbestos, urea formaldehyde, the group
         of organic compounds known as polychlorinated biphenyls, petroleum
         products including gasoline, fuel oil, crude oil and various
         constituents of such products, radon, and any hazardous substance as
         defined in the Comprehensive Environmental Response, Compensation and
         Liability Act of 1980, 42 U.S.C. 9601-9657, as amended ("CERCLA")
         (collectively, "ENVIRONMENTAL POLLUTANTS") other than customary office
         supplies and cleaning supplies stored and handled within the Premises
         in accordance with all applicable laws, will be generated, treated,
         stored, released or disposed of, or otherwise placed, deposited in or
         located on the Property, and no activity shall be taken on the
         Property, by Tenant, its agents, employees, invitees or contractors,
         that would cause or contribute to (i) the Property or any part thereof
         to become a generation, treatment, storage or disposal facility within
         the meaning of or otherwise bring the Property within the ambit of the
         Resource Conservation and Recovery Act of 1976 ("RCRA"), 42 U.S.C. 5901
         et. seq., or any similar state law or local ordinance, (ii) a release
         or threatened release of toxic or hazardous wastes or substances,
         pollutants or contaminants, from the Property or any part thereof
         within the meaning of, or otherwise result in liability in connection
         with the Property within the ambit of CERCLA, or any similar state law
         or local ordinance, or (iii) the discharge of pollutants or effluents
         into any water source or system, the dredging or filling of any waters,
         or the discharge into the air of any emissions, that would require a
         permit under

                                       17
<PAGE>   21
         the Federal Water Pollution Control Act, 33 U.S.C. 1251 et. seq., or
         the Clean Air Act, 42 U.S.C. 7401 et. seq., or any similar state law or
         local ordinance.

         B. Tenant agrees to indemnify and hold Indemnitees (as defined in
         Section 16) harmless from and against and to reimburse Indemnitees with
         respect to, any and all claims, demands, causes of action, loss,
         damage, liabilities, costs and expenses (including attorneys' fees and
         court costs) of any and every kind or character, known or unknown,
         fixed or contingent, asserted against or incurred by Landlord at any
         time and from time-to-time by reason of or arising out of the breach of
         any representation or covenant contained in Section 20.A above.

         C. Tenant shall immediately notify Landlord in writing of any release
         or threatened release of toxic or hazardous wastes or substances,
         pollutants or contaminants of which Tenant has knowledge whether or not
         the release is in quantities that would require under law the reporting
         of such release to a governmental or regulatory agency.

         D. Tenant shall also immediately notify Landlord in writing of, and
         shall contemporaneously provide Landlord with a copy of:

                  (1)      Any written notice of release of hazardous wastes or
                           substances, pollutants or contaminants on the
                           Property that is provided by Tenant or any subtenant
                           or other occupant if the Premises to a governmental
                           or regulatory agency;

                  (2)      Any notice of a violation, or a potential or alleged
                           violation, of any Environmental Law (hereinafter
                           defined) that is received by Tenant or any subtenant
                           or other occupant of the Premises from any
                           governmental or regulatory agency;

                  (3)      Any inquiry, investigation, enforcement, cleanup,
                           removal, or other action that is instituted or
                           threatened by a governmental or regulatory agency
                           against Tenant or any subtenant or other occupant of
                           the Premises and that relates to the release or
                           discharge of hazardous wastes or substances,
                           pollutants or contaminants on or from the Property;

                  (4)      Any claim that is instituted or threatened by any
                           third-party against Tenant or any subtenant or other
                           occupant of the Premises and that relates to any
                           release or discharge of hazardous wastes or
                           substances, pollutants or contaminants on or from the
                           Property; and

                  (5)      Any notice of the loss of any environmental operating
                           permit by Tenant or any subtenant or other occupant
                           of the Premises.

         E. OTHER THAN AS EXPRESSLY SET FORTH IN THAT CERTAIN PHASE I
         ENVIRONMENTAL REPORT (A COPY OF WHICH WILL BE PROVIDED FOR TENANT'S
         REVIEW AT THE OFFICES OF LANDLORD DURING NORMAL BUSINESS HOURS),
         LANDLORD HAS NO ACTUAL KNOWLEDGE OF THE RELEASE OR DISPOSAL OF ANY
         HAZARDOUS SUBSTANCES WITHIN THE BUILDING AND, EXCEPT FOR DE MINIMIS
         AMOUNTS, LANDLORD SHALL NOT CAUSE OR PERMIT ANY ENVIRONMENTAL
         POLLUTANTS TO BE USED, STORED, GENERATED OR DISPOSED OF ON, IN OR ABOUT
         THE BUILDING IN VIOLATION OF ANY APPLICABLE ENVIRONMENTAL LAWS.
         LANDLORD AGREES TO INDEMNIFY, DEFEND AND HOLD TENANT HARMLESS FROM AND
         AGAINST ANY AND ALL CLAIMS, DAMAGES, FINES, JUDGMENTS, PENALTIES,
         COSTS, EXPENSES, LIABILITIES OR LOSSES ARISING FROM ANY GOVERNMENTAL
         ENTITY OR OTHER THIRD PARTY SEEKING TO ENFORCE AGAINST TENANT OR
         SEEKING DAMAGES FROM TENANT, OR SEEKING TO JOIN TENANT IN ANY LEGAL
         ACTION

                                       18

<PAGE>   22
         PERTAINING TO THE VIOLATION BY LANDLORD OF ANY ENVIRONMENTAL LAW(S).
         THE INDEMNITY SET FORTH IN THIS SECTION 20.E SHALL NOT BE BINDING UPON
         ANY MORTGAGEE OF LANDLORD AND TENANT SHALL LOOK SOLELY TO THE
         RESPECTIVE LANDLORD WHEN SUCH LANDLORD IS FINALLY HELD TO HAVE VIOLATED
         THE ENVIRONMENTAL LAW AS SET FORTH ABOVE. NEITHER THE PREDECESSOR IN
         INTEREST NOR THE SUCCESSOR IN INTEREST TO SUCH LANDLORD SHALL BE LIABLE
         TO TENANT FOR THIS INDEMNITY.

         F. TO THE EXTENT THAT EITHER LANDLORD OR TENANT (INCLUSIVE OF THEIR
         RESPECTIVE EMPLOYEES, AGENTS, CONTRACTORS, SERVANTS, CONCESSIONAIRES,
         LICENSEES, OR INVITEES) IS FINALLY HELD BY A COURT OF COMPETENT
         JURISDICTION TO BE PARTIALLY AT FAULT FOR ANY CLAIM FOR WHICH AN
         INDEMNITY OBLIGATION ARISES HEREUNDER, THEN NEITHER LANDLORD NOR TENANT
         AS AGAINST EACH OTHER SHALL INDEMNIFY, DEFEND OR HOLD THE OTHER
         HARMLESS AND EACH PARTY SHALL BE LIABLE ONLY TO THE EXTENT OF THE
         PERCENTAGE OF ITS OWN FAULT AS FINALLY HELD BY THE COURT OF COMPETENT
         JURISDICTION.

         G. As used herein "Environmental Laws" mean all present and future
         federal, state and municipal laws, ordinances, rules and regulations
         applicable to environmental and ecological conditions, and the rules
         and regulations of the U.S. Environmental Protection Agency, and any
         other federal, state or municipal agency, or governmental board or
         entity relating to environmental matters.

21. AMERICANS WITH DISABILITIES ACT - Tenant agrees to comply with all
requirements of the Americans with Disabilities Act (Public Law (July 26, 1990)
("ADA") applicable to the Premises and such other current acts or other
subsequent acts, (whether federal or state) addressing like issues as are
enacted or amended. Tenant agrees to indemnify and hold Landlord harmless from
any and all expenses, liabilities, costs or damages suffered by Landlord as a
result of additional obligations which may be imposed on the Building or the
Property under of such acts by virtue of Tenant's operations and/or occupancy.
Tenant acknowledges that it will be wholly responsible for any provision of the
Lease which could arguably be construed as authorizing a violation of the ADA.
Any such provision shall be interpreted in a manner which permits compliance
with the ADA and is hereby amended to permit such compliance.

22. EVENTS OF DEFAULT

         A. The following events shall be deemed to be "EVENTS OF DEFAULT" under
         this Lease:

                  (1)      Tenant shall fail to pay when due any Base Rent,
                           Additional Rent or other amount payable by Tenant to
                           Landlord under this Lease (hereinafter sometimes
                           referred to as a "MONETARY DEFAULT").

                  (2)      Any failure by Tenant (other than a Monetary Default)
                           to comply with any term, provision or covenant of
                           this Lease, which failure is not cured within thirty
                           (30) days after delivery to Tenant of notice of the
                           occurrence of such failure provided, however, that if
                           the term, condition, covenant or obligation to be
                           performed by Tenant is of such nature that the same
                           cannot reasonably be performed within such thirty-day
                           period, such default shall be deemed to have been
                           cured if Tenant commences such performance within
                           said thirty-day period and thereafter diligently
                           undertakes to complete the same, and in fact,
                           completes same within sixty (60) days after notice.

                  (3)      Any failure by Tenant to observe or perform any of
                           the covenants with respect to (a) assignment and
                           subletting set forth in Section 13, (b) mechanic's
                           liens set forth in Section 14, or (c) insurance set
                           forth in Section 15.

                                       19
<PAGE>   23
                  (4)      Tenant or any Guarantor shall (a) become insolvent,
                           (b) make a transfer in fraud of creditors (c) make an
                           assignment for the benefit of creditors, (d) admit in
                           writing its inability to pay its debts as they become
                           due, (e) file a petition under any section or chapter
                           of the United States Bankruptcy Code, as amended,
                           pertaining to bankruptcy, or under any similar law or
                           statute of the United States or any State thereof, or
                           Tenant or any Guarantor shall be adjudged bankrupt or
                           insolvent in proceedings filed against Tenant or any
                           Guarantor thereunder; or a petition or answer
                           proposing the adjudication of Tenant or any Guarantor
                           as a bankrupt or its reorganization under any present
                           or future federal or state bankruptcy or similar law
                           shall be filed in any court and such petition or
                           answer shall not be discharged or denied within sixty
                           (60) days after the filing thereof

                  (5)      A receiver or trustee shall be appointed for all or
                           substantially all of the assets of Tenant or any
                           Guarantor or of the Premises or of any of Tenant's
                           property located thereon in any proceeding brought by
                           Tenant or any Guarantor, or any such receiver or
                           trustee shall be appointed in any proceeding brought
                           against Tenant or any Guarantor and shall not be
                           discharged within sixty (60) days after such
                           appointment or Tenant or such Guarantor shall consent
                           to or acquiesce in such appointment.

                  (6)      The leasehold estate hereunder shall be taken on
                           execution or other process of law in any action
                           against Tenant.

                  (7)      Tenant shall, WITHOUT WRITTEN NOTICE TO LANDLORD,
                           abandon or vacate any substantial portion of the
                           Premises.

                  (8)      Tenant shall fail to take possession of and occupy
                           the Premises within thirty (30) days following the
                           Commencement Date and thereafter continuously conduct
                           its operations in the Premises for the Permitted Use
                           as set forth in Section 4 hereof.

                  (9)      The liquidation, termination, dissolution, forfeiture
                           of right to do business or death of Tenant or any
                           Guarantor.

23. REMEDIES.

         A. Upon the occurrence of any Event of Default, Landlord shall have the
         following rights and remedies, in addition to those allowed by law or
         equity, any one or more of which may be exercised without further
         notice to or demand upon Tenant and which may be pursued successively
         or cumulatively as Landlord may elect:

                  (1)      Landlord may re-enter the Premises and cure any
                           default of Tenant, in which event Tenant shall, upon
                           demand, reimburse Landlord as Additional Rent for any
                           cost and expenses which Landlord may incur to cure
                           such default; and Landlord shall not be liable to
                           Tenant for any loss or damage which Tenant may
                           sustain by reason of Landlord's action, regardless of
                           whether caused by Landlord's negligence or otherwise.

                  (2)      Landlord may terminate this Lease by giving to Tenant
                           notice of Landlord's election to do so, in which
                           event the Term shall end, and all right, title and
                           interest of Tenant hereunder shall expire, on the
                           date stated in such notice;

                  (3)      Landlord may terminate the right of Tenant to
                           possession of the Premises without terminating this
                           Lease by giving notice to Tenant that Tenant's right
                           to possession shall end on the date stated in such
                           notice, whereupon the right of Tenant to possession
                           of the Premises or any part thereof shall cease on
                           the date stated in such notice; and

                  (4)      Landlord may enforce the provisions of this Lease and
                           may enforce and protect the rights of Landlord
                           hereunder by a suit or suits in equity or at law for
                           the specific performance of any covenant or agreement
                           contained herein, or for the enforcement of any other

                                       20
<PAGE>   24
                           appropriate legal or equitable remedy, including
                           recovery of all moneys due or to become due from
                           Tenant under any of the provisions of this lease.

         Landlord shall not be required to serve Tenant with any notices or
         demands as a prerequisite to its exercise of any of its rights or
         remedies under this Lease, other than those notices and demands
         specifically required under this Lease. TENANT EXPRESSLY WAIVES THE
         SERVICE OF ANY STATUTORY DEMAND OR NOTICE WHICH IS A PREREQUISITE TO
         LANDLORD'S COMMENCEMENT OF EVICTION PROCEEDINGS AGAINST TENANT,
         INCLUDING THE DEMANDS AND NOTICES SPECIFIED IN SECTIONS 13-40-104,
         13-40-106 AND 13-40-107 OF THE COLORADO REVISED STATUTES (1973). TENANT
         WAIVES ANY RIGHT TO TRIAL BY JURY IN ANY LAWSUIT BROUGHT BY LANDLORD TO
         RECOVER POSSESSION OF THE PREMISES FOLLOWING LANDLORD'S TERMINATION OF
         THIS LEASE PURSUANT TO SECTION 23A(2) OR THE RIGHT OF TENANT TO
         POSSESSION OF THE PREMISES PURSUANT TO SECTION 23A(3) AND ON ANY CLAIM
         FOR DELINQUENT RENT WHICH LANDLORD MAY JOIN IN ITS LAWSUIT TO RECOVER
         POSSESSION.

         B. If Landlord exercises either of the remedies provided in Sections
         23.A.(2) or 23.A.(3), Tenant shall surrender possession and vacate the
         Premises and immediately deliver possession thereof to Landlord, and
         Landlord may re-enter and take complete and peaceful possession of the
         Premises, with process of law, full and complete license to do so being
         hereby granted to Landlord, and Landlord may remove all occupants and
         property therefrom, using such force as may be necessary to the extent
         allowed by law, without being deemed guilty in any manner of trespass,
         eviction or forcible entry and detainer and without relinquishing
         Landlord's right to Rent or any other right given to Landlord hereunder
         or by operation of law.

         C. If Landlord terminates the right of Tenant to possession of the
         Premises without terminating this Lease, Landlord shall have the right
         to immediate recovery of all amounts then due hereunder. Such
         termination of possession shall not release Tenant, in whole or in
         part, from Tenant's obligation to pay Rent hereunder for the full Term,
         and Landlord shall have the right, from time to time, to recover from
         Tenant, and Tenant shall remain liable for, all Base Rent, Additional
         Rent and any other sums accruing as they become due under this Lease
         during the period from the date of such notice of termination of
         possession to the stated end of the Term. In any such case, Landlord
         may relet the Premises or any part thereof for the account of Tenant
         for such rent, for such time (which may be for a term extending beyond
         the Term) and upon such terms as Landlord shall determine and may
         collect the rents from such reletting. Landlord shall not be required
         to accept any tenant offered by Tenant or to observe any instructions
         given by Tenant relative to such reletting. Also, in any such case,
         Landlord may make repairs, alterations and additions in or to the
         Premises and redecorate the same to the extent deemed by Landlord
         necessary or desirable and in connection therewith change the locks to
         the Premises, and Tenant upon demand shall pay the cost of all of the
         foregoing together with Landlord's expenses of reletting. The rents
         from any such reletting shall be applied first to the payment of the
         expenses of reentry, redecoration, repair and alterations and the
         expenses of reletting and second to the payment of Rent herein provided
         to be paid by Tenant. Any excess or residue shall operate only as an
         offsetting credit against the amount of Rent due and owing as the same
         thereafter becomes due and payable hereunder, and the use of such
         offsetting credit to reduce the amount of Rent due Landlord, if any,
         shall not be deemed to give Tenant any right, title or interest in or
         to such excess or residue and any such excess or residue shall belong
         to Landlord solely, and in no event shall Tenant be entitled to a
         credit on its indebtedness to Landlord in excess of the aggregate sum
         (including Base Rent and Additional Rent) which would have been paid by
         Tenant for the period for which the credit to Tenant is being
         determined, had no Event of Default occurred. No such reentry or
         repossession, repairs, alterations and additions, or reletting shall be
         construed as an eviction or ouster of Tenant or as an election on
         Landlord's part to terminate this Lease, unless a written notice of
         such intention is given to Tenant, or shall operate to release Tenant
         in whole or in part from any of Tenant's obligations hereunder, and
         Landlord, at any time and from time to time, may sue and recover
         judgment for any deficiencies remaining after the application of the
         proceeds of any such reletting.

                                       21
<PAGE>   25
         D. If this Lease is terminated by Landlord pursuant to Section
         23.A.(2), Landlord shall be entitled to recover from Tenant all Rent
         accrued and unpaid for the period up to and including such termination
         date, as well as all other additional sums payable by Tenant, or for
         which Tenant is liable or for which Tenant has agreed to indemnify
         Landlord under any of the provisions of this Lease, which may be then
         owing and unpaid, and all costs and expenses, including without
         limitation court costs and attorneys' fees incurred by Landlord in the
         enforcement of its rights and remedies hereunder, and, in addition,
         Landlord shall be entitled to recover as damages for loss of the
         bargain and not as a penalty (i) the unamortized portion of any
         concessions offered by Landlord to Tenant in connection with this
         Lease, including without limitation Landlord's contribution to the cost
         of tenant improvements and alterations, if any, installed by either
         Landlord or Tenant pursuant to this Lease or any work letter in
         connection with this Lease, (ii) the aggregate sum which at the time of
         such termination represents the excess, if any, of the present value
         of the aggregate rents which would have been payable after the
         termination date had this Lease not been terminated, including, without
         limitation, Base Rent at the annual rate or respective annual rates for
         the remainder of the Term provided for in this Lease and the amount
         projected by Landlord to represent Additional Rent for the remainder of
         the Term over the then present value of the then aggregate fair rent
         value of the Premises for the balance of the Term, such present worth
         to be computed in each case on the basis of a ten percent (10%) per
         annum discount from the respective dates upon which such Rents would
         have been payable hereunder had this Lease not been terminated, and
         (iii) any damages in addition thereto, including without limitation
         reasonable attorneys' fees and court costs, which Landlord sustains as
         a result of the breach of any of the covenants of this Lease other than
         for the payment of Rent.

         E. Landlord shall use commercially reasonable efforts to mitigate any
         damages resulting from an Event of Default by Tenant under this Lease.
         Landlord's obligation to mitigate damages after an Event of Default by
         Tenant under this Lease shall be satisfied in full if Landlord
         undertakes to lease the Premises to another tenant (a "SUBSTITUTE
         TENANT") in accordance with the following criteria:

                  (1)      Landlord shall have no obligations to solicit or
                           entertain negotiations with any other prospective
                           tenants for the Premises until Landlord obtains full
                           and complete possession of the Premises including,
                           without limitation, the final and unappealable legal
                           right to relet the Premises free of any claim of
                           Tenant;

                  (2)      Landlord shall not be obligated to lease or show the
                           Premises, on a priority basis, offer the Premises to
                           a prospective tenant when other premises in the
                           Building suitable for that prospective tenant's use
                           are (or soon will be) available;

                  (3)      Landlord shall not be obligated to lease the Premises
                           to a Substitute Tenant for a Rent less than the
                           current fair market Rent then prevailing for similar
                           uses in comparable buildings in the same market area
                           as the Building, nor shall Landlord be obligated to
                           enter into a new lease under other terms and
                           conditions that are unacceptable to Landlord under
                           Landlord's then current leasing policies for
                           comparable space in the Building;

                  (4)      Landlord shall not be obligated to enter into a lease
                           with a Substitute Tenant whose use would:

                           (i)      violate any restriction, covenant, or
                                    requirement contained in the lease of
                                    another tenant of the Building;

                           (ii)     adversely affect the reputation of the
                                    Building; or

                           (iii)    be incompatible with the operation of the
                                    Building as an office building;

                  (5)      Landlord shall not be obligated to enter into a lease
                           with any proposed Substitute Tenant which does not
                           have, in Landlord's reasonable opinion, sufficient
                           financial resources to operate the Premises in a
                           first class manner; and

                                       22
<PAGE>   26
                  (6)      Landlord shall not be required to expend any amount
                           of money to alter, remodel, or otherwise make the
                           Premises suitable for use by a proposed Substitute
                           Tenant unless:

                           (i)      Tenant pays any such sum to Landlord in
                                    advance of Landlord's execution of a lease
                                    with such tenant (which payment shall not be
                                    in lieu of any damages or other sums to
                                    which Landlord may be entitled as a result
                                    of Tenant's default under this Lease); or

                           (ii)     Landlord, in Landlord's reasonable
                                    discretion, determines that any such
                                    expenditure is financially justified in
                                    connection with entering into any such
                                    substitute lease.

         F. All property of Tenant removed from the Premises by Landlord
         pursuant to any provision of this Lease or applicable law may be
         handled, removed or stored by Landlord at the cost and expense of
         Tenant, and Landlord shall not be responsible in any event for the
         value, preservation or safekeeping thereof. Tenant shall pay Landlord
         for all expenses incurred by Landlord with respect to such removal and
         storage so long as the same is in Landlord's possession or under
         Landlord's control. All such property not removed from the Premises or
         retaken from storage by Tenant within thirty (30) days after the end of
         the Term or the termination of Tenant's right to possession of the
         Premises, however terminated, at Landlord's option, shall be
         conclusively deemed to have been conveyed by Tenant to Landlord as by
         bill of sale without further payment or credit by Landlord to Tenant.

         G. Tenant hereby grants to Landlord a first lien upon the interest of
         Tenant under this Lease to secure the payment of moneys due under this
         Lease, which lien may be enforced in equity, and Landlord shall be
         entitled as a matter of right to have a receiver appointed to take
         possession of the Premises and relet the same under order of court.

         H. If Tenant is adjudged bankrupt, or a trustee in bankruptcy is
         appointed for Tenant, Landlord and Tenant, to the extent permitted by
         law, agree to request that the trustee in bankruptcy determine within
         sixty (60) days thereafter whether to assume or to reject this Lease.

         I. The receipt by Landlord of less than the full rent due shall not be
         construed to be other than a payment on account of rent then due, nor
         shall any statement on Tenant's check or any letter accompanying
         Tenant's check be deemed an accord and satisfaction, and Landlord may
         accept such payment without prejudice to Landlord's right to recover
         the balance of the rent due or to pursue any other remedies provided in
         this lease. The acceptance by Landlord of rent hereunder shall not be
         construed to be a waiver of any breach by Tenant of any term, covenant
         or condition of this Lease. No act or omission by Landlord or its
         employees or agents during the term of this Lease shall be deemed an
         acceptance of a surrender of the Premises, and no agreement to accept
         such a surrender shall be valid unless in writing and signed by
         Landlord.

         J. In the event of any litigation between Tenant and Landlord to
         enforce any provision of this Lease or any right of either party
         hereto, the unsuccessful party to such litigation shall pay to the
         successful party all costs and expenses, including reasonable
         attorney's fees, incurred therein. Furthermore, if Landlord, without
         fault, is made a party to any litigation instituted by or against
         Tenant, Tenant shall indemnify Landlord against, and protect, defend,
         and save it harmless from, all costs and expenses, including reasonable
         attorney's fees, incurred by it in connection therewith. If Tenant,
         without fault, is made party to any litigation instituted by or against
         Landlord, Landlord shall indemnify Tenant against, and protect, defend,
         and save it harmless from, all costs and expenses, including reasonable
         attorney's fees, incurred by it in connection therewith.

24. NO WAIVER. Failure of Landlord to declare any default immediately upon its
occurrence, or delay in taking any action in connection with an event of
default, shall not constitute a waiver of such default, nor shall it constitute
an estoppel against Landlord but Landlord shall have the right to declare the
default at any time and take such action as is lawful or authorized under this
Lease. Failure by Landlord to enforce

                                       23
<PAGE>   27
its rights with respect to any one default shall not constitute a waiver of its
rights with respect to any subsequent default.

25. PEACEFUL ENJOYMENT. Tenant shall, and may peacefully have, hold, and enjoy
the Premises, subject to the other terms hereof, provided that Tenant pays the
Rent and other sums herein recited to be paid by Tenant and timely performs all
of Tenant's covenants and agreements herein contained. This covenant and any and
all other covenants of Landlord shall be binding upon Landlord and its
successors only with respect to breaches occurring during its or their
respective periods of ownership of the Landlord's interest hereunder.

26. INTENTIONALLY DELETED.

27. HOLDING OVER. In the event of holding over by Tenant after expiration or
other termination of this Lease or in the event Tenant continues to occupy the
Premises after the termination of Tenant's right of possession pursuant to
Section 23.A(3) hereof, occupancy of the Premises subsequent to such termination
or expiration shall be that of a tenancy at sufferance and in no event for
month-to-month or year-to-year. Tenant shall, throughout the entire holdover
period, be subject to all the terms and provisions of this Lease and shall pay
for its use and occupancy an amount (on a per month basis without reduction for
any partial months during any such holdover) equal to ONE AND ONE HALF the sum
(or 150%) of (a) the greater of then current market rate, or (b) the Base Rent
and Additional Rent which would have been applicable had the Lease Term
continued through the period of such holding over by Tenant. No holding over by
Tenant or payments of money by Tenant to Landlord after the expiration of the
Lease Term shall be construed to extend the Lease Term or prevent Landlord from
recovery of immediate possession of the Premises by summary proceedings or
otherwise unless Landlord has sent written notice to Tenant that Landlord has
elected to extend the Lease Term. In addition to the obligation to pay the
amounts set forth above during any such holdover period, Tenant shall also be
liable to Landlord for all damages, including, without limitation, any
consequential damages, which Landlord may suffer by reason of any holding over
by Tenant and Tenant shall also indemnify Landlord against any and all claims
made by any other tenant or prospective tenant against Landlord for delay by
Landlord in delivering possession of the Premises to such other tenant or
prospective tenant.

28. SUBORDINATION TO MORTGAGE/ESTOPPEL CERTIFICATE. Tenant accepts this Lease
subject and subordinate to any mortgage, deed of trust or other lien presently
existing or hereafter arising upon the Premises, or upon the Building and/or the
Property and to any renewals, modifications, refinancings and extensions
thereof, but Tenant agrees that any such mortgagee shall have the right at any
time to subordinate such mortgage, deed of trust or other lien to this Lease on
such terms and subject to such conditions as such mortgagee may deem appropriate
in its discretion. The provisions of the foregoing sentence shall be
self-operative and no further instrument of subordination shall be required.
However, Landlord is hereby irrevocably vested with full power and authority to
subordinate this Lease to any mortgage, deed of trust or other lien now existing
or hereafter placed upon the Premises, or the Building and/or the Property and
Tenant agrees within ten (10) days after demand to execute such further
instruments subordinating this Lease or attorning to the holder of any such
liens as Landlord may request. The terms of this Lease are subject to approval
by the Landlord's existing lender(s) and any lender(s) who, at the time of the
execution of this Lease, have committed or are considering committing to
Landlord to

                                       24
<PAGE>   28
make a loan secured by all or any portion of the Property, and such approval is
a condition precedent to Landlord's obligations hereunder. In the event that
Tenant should fail to execute any subordination or other agreement required by
this Section promptly as requested, Tenant hereby irrevocably constitutes
Landlord as its attorney-in-fact to execute such instrument in Tenant's name,
place and stead, it being agreed that such power is one coupled with an interest
in Landlord and is accordingly irrevocable. Tenant agrees that it will from
time-to-time upon request by Landlord execute and deliver to such persons as
Landlord shall request a statement in recordable form certifying that this Lease
is unmodified and in full force and effect (or if there have been modifications,
that the same is in full force and effect as so modified), stating the dates to
which rent and other charges payable under this Lease have been paid, stating
that Landlord is not in default hereunder (or if Tenant alleges a default
stating the nature of such alleged default) and further stating such other
matters as Landlord shall reasonably require. Tenant agrees periodically to
furnish within ten (10) days after so requested by Landlord, ground lessor or
the holder of any deed of trust, mortgage or security agreement covering the
Building, the Property, or any interest of Landlord therein, a certificate
signed by Tenant certifying (a) that this Lease is in full force and effect and
unmodified (or if there have been modifications, that the same is in full force
and effect as modified and stating the modifications), (b) as to the
Commencement Date and the date through which Base Rent and Tenant's Additional
Rent have been paid, (c) that Tenant has accepted possession of the Premises and
that any improvements required by the terms of this Lease to be made by Landlord
have been completed to the satisfaction of Tenant, (d) that except as stated in
the certificate no rent has been paid more than thirty (30) days in advance of
its due date, (e) that the address for notices to be sent to Tenant is as set
forth in this Lease (or has been changed by notice duly given and is as set
forth in the certificate), (f) that except as stated in the certificate, Tenant,
as of the date of such certificate, has no charge, lien, or claim of offset
against rent due or to become due, (g) that except as stated in the certificate,
Landlord is not then in default under this Lease, (h) as to the amount of the
Approximate Rentable Area of the Premises then occupied by Tenant, (i) that
there are no renewal or extension options, purchase options, rights of first
refusal or the like in favor of Tenant except as set forth in this Lease, (j)
the amount and nature of accounts payable to Landlord under terms of this Lease,
and (k) as to such other matters as may be requested by Landlord or ground
lessor or the holder of any such deed of trust, mortgage or security agreement.
Any such certificate may be relied upon by any ground lessor, prospective
purchaser, secured party, mortgagee or any beneficiary under any mortgage, deed
of trust on the Building or the Property or any part thereof or interest of
Landlord therein.

29. NOTICE. Any notice required or permitted to be given under this Lease or by
law shall be deemed to have been given if it is written and delivered in person
or mailed by Registered or Certified mail, postage prepaid, or sent by a
nationally recognized overnight delivery service to the party who is to receive
such notice at the address specified in Section 1.Y. of this Lease. When so
mailed, the notice shall be deemed to have been given two (2) business days
after the date it was mailed. When sent by overnight delivery service, the
notice shall be deemed to have been given on the next business day after deposit
with such overnight delivery service. The address specified in Section 1.Y. of
this Lease may be changed from time to time by giving written notice thereof to
the other party.

30. LANDLORD'S LIEN. In addition to any statutory lien for rent in Landlord's
favor, Landlord (the secured party for purposes hereof) shall have and Tenant
(the debtor for purposes hereof) hereby grants to Landlord, a continuing
security interest for all Base Rent, Additional Rent and other sums of money
becoming due hereunder from Tenant, upon all goods, wares, equipment, fixtures,
furniture, inventory, accounts, contract rights, chattel paper and other
personal property of Tenant situated on the Premises subject to this Lease and
such property shall not be removed therefrom without the consent of Landlord
until all arrearages in Rent as well as any and all sums of money then due to
Landlord hereunder shall first have been paid and discharged. In the event of a
default under this Lease, landlord shall have, in addition to any other remedies
provided herein or by law, all rights and remedies under the Uniform Commercial
Code, including without limitation the right to sell the property described in
this Section at public or private sale upon ten (10) days notice to Tenant which
notice Tenant hereby agrees is adequate and reasonable. Tenant hereby agrees to
execute such other instruments necessary or desirable in Landlord's discretion
to perfect the security interest hereby created. Any statutory lien for Rent in
not hereby waived, the express contractual lien herein being granted in addition
and supplementary thereto. Tenant warrants and represents that the collateral
subject to the security interest granted herein is not purchased or used by
Tenant for personal, family or household purposes. Tenant further warrants and
represents that the lien

                                       25
<PAGE>   29
granted herein constitutes a first and superior lien and the Tenant will not
allow the placing of any other lien upon the property described in this Section
without the prior written consent of Landlord.

31. SURRENDER OF PREMISES. Upon the termination, whether by lapse of time or
otherwise, or upon any termination of Tenant's right to possession without
termination of the Lease, Tenant will at once surrender possession and vacate
the Premises, together with all Leasehold Improvements (except those Leasehold
Improvements Tenant is required to remove pursuant to Section 8 hereof), to
Landlord in good condition and repair, ordinary wear and tear excepted;
conditions existing because of Tenant's failure to perform maintenance, repairs
or replacements as required of Tenant under this Lease shall not be deemed
"reasonable wear and tear." Tenant shall surrender to Landlord all keys to the
Premises and make known to Landlord the explanation of all combination locks
which Tenant is permitted to leave on the Premises. Subject to the Landlord's
rights under Section 23 hereof, if Tenant fails to remove any of Tenant's
Property within one (1) day after the termination of this Lease, or Tenant's
right to possession hereunder, Landlord, at Tenant's sole cost and expenses,
shall be entitled to remove and/or store such Tenant's Property and Landlord
shall be in no event be responsible for the value, preservation or safekeeping
thereof. Tenant shall pay Landlord, upon demand, any and all reasonable expenses
caused by such removal and all storage charges against such property so long as
the same shall be in possession of Landlord or under the control of Landlord. In
addition, if Tenant fails to remove any Tenant's Property from the Premises or
storage, as the case may be, within ten (10) days after written notice from
Landlord, Landlord, at its option, may deem all or any part of such Tenant's
Property to have been abandoned by Tenant and title thereof shall immediately
pass to Landlord under this Lease as by a bill of sale.

32. RIGHTS RESERVED TO LANDLORD. Landlord reserves the following rights,
exercisable without notice, except as provided herein, and without liability to
Tenant for damage or injury to property, person or business and without
affecting an eviction or disturbance of Tenant's use or possession or giving
rise to any claim for setoff or abatement of rent or affecting any of Tenant's
obligations under this Lease: (1) upon thirty (30) days prior notice to change
the name or street address of the Building; (2) to install and maintain signs on
the exterior and interior of the Building; (3) to designate and approve window
coverings to present a uniform exterior appearance; (4) to make any decorations,
alterations, additions, improvements to the Building or Property, or any part
thereof (including, with prior notice, the Premises) which Landlord shall
desire, or deem necessary for the safety, protection, preservation or
improvement of the Building or Property, or as Landlord may be required to do by
law; (5) to have access to the Premises at reasonable hours to perform its
duties and obligations, IN ACCORDANCE WITH SECTION 12 and to exercise its rights
under this Lease; (6) to retain at all times and to use in appropriate
instances, pass keys to all locks within and to the Premises; (7) to REASONABLY
approve the weight, size, or location of heavy equipment, or articles within the
Premises; (8) to close or restrict access to the Building at all times other
than Normal Business Hours subject to Tenant's right to admittance at all times
under such regulations as Landlord may prescribe from time to time, or to close
(temporarily or permanently) any of the entrances to the Building; provided
Landlord shall have the right to restrict or prohibit access to the Building or
the Premises at any time Landlord determines it is necessary to do so to
minimize the risk of injuries or death to persons or damage to property (9) to
change the arrangement and/or location of entrances of passageways, doors and
doorways, corridors, elevators, stairs, toilets and public parts of the Building
or Property; (10) to regulate access to telephone, electrical and other utility
closets in the building and to require use of designated contractors for any
work involving access to the same; (11) to grant to anyone the exclusive right
to conduct any business or undertaking in the Building provided Landlord's
exercise of its rights under this clause 11, shall not be deemed to prohibit
Tenant from the operation of its business in the Premises and shall not
constitute a constructive eviction.

33. MISCELLANEOUS.

         A. If any term or provision of this Lease, or the application thereof
         to any person or circumstance shall, to any extent, be invalid or
         unenforceable, the remainder of this Lease, or the application of such
         term or provision to persons or circumstances other than those as to
         which it is held invalid or unenforceable,

                                       26
<PAGE>   30
         shall not be affected thereby, and each term and provision of this
         Lease shall be valid and enforced to the fullest extent permitted by
         law.

         B. Tenant agrees not to record this Lease or any short form, or
         memorandum hereof.

         C. This Lease and the rights and obligations of the parties hereto
         shall be interpreted, construed, and enforced in accordance with the
         laws of the state in which the Building is located.

         D. Events of "FORCE MAJEURE" shall include strikes, riots, acts of God,
         shortages of materials, war, governmental laws, regulations or
         restrictions, or any other cause whatsoever beyond the control of
         Landlord or Tenant, as the case may be. Whenever a period of time is
         herein prescribed for the taking of any action by Landlord or Tenant
         (other than the payment of Rent and all other such sums of money as
         shall become due hereunder), such party shall not be liable or
         responsible for, there shall be excluded from the computation of such
         period of time, any delays due to events of Force Majeure.

         E. Except as expressly otherwise herein provided, with respect to all
         required acts of Tenant, time is of the essence of this Lease.

         F. Landlord shall have the right to transfer and assign, in whole or in
         part, all of its rights and obligations hereunder and in the Building
         and Property referred to herein, and in such event and upon such
         transfer Landlord shall be released from any further obligations
         hereunder, and Tenant agrees to look solely to such successor in
         interest of Landlord for the performance of such obligations.

         G. Tenant hereby represents to Landlord that it has dealt directly with
         and only with the Broker as a broker in connection with this Lease.
         Landlord and Tenant hereby indemnify and hold each other harmless
         against any loss, claim, expense or liability with respect to any
         commissions or brokerage fees claimed on account of the execution
         and/or renewal of this Lease due to any action of the indemnifying
         party.

         H. If there is more than one Tenant, or if the Tenant as such is
         comprised of more than one person or entity, the obligations hereunder
         imposed upon Tenant shall be joint and several obligations of all such
         parties. All notices, payments, and agreements given or made by, with
         or to any one of such persons or entities shall be deemed to have been
         given or made by, with or to all of them.

         I. The individual signing this Lease on behalf of Tenant represents (1)
         that such individual is duly authorized to execute or attest and
         deliver this Lease on behalf of Tenant in accordance with the
         organizational documents of Tenant; (2) that this Lease is binding upon
         Tenant; (3) that Tenant is duly organized and legally existing in the
         state of its organization, and is qualified to do business in the state
         in which the Premises is located.

         J. Tenant acknowledges that the financial capability of Tenant to
         perform its obligations hereunder is material to Landlord and that
         Landlord would not enter into this Lease but for its belief, based on
         its review of Tenant's financial statements, that Tenant is capable of
         performing such financial obligations. Tenant hereby represents,
         warrants and certifies to Landlord that its financial statements
         previously furnished to Landlord were at the time given true and
         correct in all material respects and that there have been no material
         subsequent changes thereto as of the date of this Lease.

         K. Notwithstanding anything to the contrary contained in this Lease,
         the expiration of the Lease Term, whether by lapse of time or
         otherwise, shall not relieve Tenant from Tenant's obligations accruing
         prior to the expiration of the Lease Term, and such obligations shall
         survive any such expiration or other termination of the Lease Term.

         L. Landlord has delivered a copy of this Lease to Tenant for Tenant's
         review only, and the delivery hereof does not constitute an offer to
         Tenant or an option. This Lease shall not be effective until an
         original of this Lease executed by both Landlord and Tenant and an
         original Guaranty, if applicable,

                                       27
<PAGE>   31
         HEREINAFTER REQUIRED. NOTWITHSTANDING ANYTHING TO THE CONTRARY
         CONTAINED IN THIS LEASE, THE LIABILITY OF LANDLORD TO TENANT FOR ANY
         DEFAULT BY LANDLORD UNDER THIS LEASE SHALL BE LIMITED TO THE INTEREST
         OF LANDLORD IN THE BUILDING AND THE PROPERTY AND TENANT AGREES TO LOOK
         SOLELY TO LANDLORD'S INTEREST IN THE BUILDING AND THE PROPERTY FOR THE
         RECOVERY OF ANY JUDGMENT AGAINST THE LANDLORD, IT BEING INTENDED THAT
         LANDLORD SHALL NOT BE PERSONALLY LIABLE FOR ANY JUDGMENT OR DEFICIENCY.
         TENANT HEREBY COVENANTS THAT, PRIOR TO THE FILING OF ANY SUIT FOR
         DIRECT AND PROXIMATE DAMAGES, IT SHALL GIVE LANDLORD AND ALL MORTGAGEES
         WHOM TENANT HAS BEEN NOTIFIED HOLD MORTGAGES OR DEED OF TRUST LIENS ON
         THE PROPERTY, BUILDING OR PREMISES ("LANDLORD MORTGAGEES") NOTICE AND
         REASONABLE TIME TO CURE ANY ALLEGED DEFAULT BY LANDLORD.

         THE BOTTOM OF THIS PAGE IS INTENTIONALLY LEFT BLANK

                                       29
<PAGE>   32
IN WITNESS WHEREOF, Landlord and Tenant have executed this Lease in multiple
original counterparts as of the day and year first above written.

WITNESS/ATTEST                          LANDLORD:
                                        MONY/BDP Office I, a Colorado Limited
                                        Liability Company
                                        Transwestern Investment Company,
                                        L.L.C. as Agent

By: /s/ Jeanette Puemo                  By: /s/ Scott A. Tausk

Name: Jeanette Puemo                    Name: Scott A. Tausk

Title: Admin. Associate                 Title: Senior Vice President

WITNESS/ATTEST                          TENANT:

                                        Integrated Information Systems, Inc., a
                                        Delaware Corporation

By: /s/ Glen A. Honig                   By: /s/ Jeffrey Frankel

Name: Glen A. Honig                     Name: Jeffrey Frankel

Title: Associate General Counsel        Title: VP & Corp. Counsel

                                       30
<PAGE>   33
                                   EXHIBIT A

                        OUTLINE AND LOCATION OF PREMISES

This Exhibit is attached to and made a part of the Lease dated 5/26, 2000 by and
between MONY/BDP OFFICE I, A COLORADO LIMITED LIABILITY COMPANY ("LANDLORD") AND
INTEGRATED INFORMATION SYSTEMS, INC. A DELAWARE CORPORATION ("TENANT") for space
in the Building located at Executive Center One, 11551 East Arapahoe Road,
Suite 150, Englewood, Colorado 80112.

                         [GRAPHIC OF FIRST FLOOR PLAN]

                                      A-1

<PAGE>   34
                                   EXHIBIT B

                                LEGAL DESCRIPTION

LOTS 3 OF LINCOLN EXECUTIVE CENTER FILING NO. 1, AS RECORDED ON NOVEMBER 28,
1984 IN BOOK 80 AT PAGES 38-40, COUNTY OF ARAPAHOE, STATE OF COLORADO.

                                       B-1
<PAGE>   35
                                    EXHIBIT C

                              RULES AND REGULATIONS

The following rules and regulations shall apply, where applicable, to the
Premises, the Building, the parking garage associated therewith (if any), the
Property and the appurtenances thereto:

1.       Sidewalks, entrances, passageways, courts, corridors, vestibules,
         halls, elevators and stairways in and about the Building shall not be
         obstructed nor shall objects be placed against glass partitions, doors
         or windows which would be unsightly from the Building's corridors from
         the exterior of the Building.

2.       Plumbing, fixtures and appliances shall be used for only the purpose
         for which they were designed and no UNUSUAL foreign substance of any
         kind whatsoever shall be thrown or placed therein. Damage resulting to
         any such fixtures or appliances from misuse by Tenant or its agents,
         employees or invitees, shall be paid for by Tenant and Landlord shall
         not in any case be responsible therefor.

3.       Any sign, lettering, picture, notice, advertisement installed within
         the Premises which is visible from the public corridors within the
         Building shall be installed in such manner, and be of such character
         and style, as Landlord shall approve, in writing in its reasonable
         discretion. No sign, lettering, picture, notice or advertisement shall
         be placed on any outside window or door or in a position to be visible
         from outside the Building. No nails, hooks or screws (except for
         customary artwork or wall hangings) shall be driven or inserted into
         any part of the Premises or Building except by Building maintenance
         personnel, nor shall any part of the Building be defaced or damaged by
         Tenant.

4.       Tenant shall not place any additional lock or locks on any door in the
         Premises or Building without Landlord's prior written consent. A
         reasonable number of keys to the locks on the doors in the Premises
         shall be furnished by Landlord to Tenant at the cost of Tenant, and
         Tenant shall not have any duplicate keys made. All keys and passes
         shall be returned to Landlord at the expiration or earlier termination
         of this Lease.

5.       Tenant shall refer all contractors, contractors representatives and
         installation technicians for Landlord for Landlord's supervision,
         approval and control before the performance of any contractural
         services. This provision shall apply to all work performed in the
         Building including, but not limited to installation of telephones,
         telegraph equipment, electrical devices and attachments, doors,
         entranceways, and any and all installations of every nature affecting
         floors, walls, woodwork, window trim, ceilings, equipment and any other
         physical portion of the Building. Tenant shall not waste electricity,
         water or air conditioning. All controls shall be adjusted only by
         Building personnel.

6.       Movement in or out of the Building of furniture or office equipment, or
         dispatch or receipt by Tenant of any merchandise or materials which
         require the use of elevators, stairways, lobby areas, or loading dock
         areas, shall be restricted to hours designated by Landlord. Tenant
         must seek Landlord's prior approval by providing in writing a detailed
         listing of such activity. If approved by Landlord, such activity shall
         be under the supervision of Landlord and performed in the manner stated
         by Landlord. Landlord may prohibit any article, equipment or any other
         item from being brought into the Building. Tenant is to assume all risk
         for damage to articles moved and injury to persons resulting from such
         activity. If any equipment, property and/or personnel of Landlord or of
         any other tenant is damaged or injured as a result of or in connection
         with such activity, Tenant shall be solely liable for any and all
         damage or loss resulting therefrom.

                                       C-1
<PAGE>   36
7.       All corridor doors, when not in use, shall remain closed. Tenant shall
         cause all doors to the Premises to be closed and securely locked before
         leaving the Building at the end of the day.

8.       Tenant shall keep all electrical and mechanical apparatus owned by
         Tenant free of vibration, noise and airwaves which may be transmitted
         beyond the Premises.

9.       Canvassing, soliciting and peddling in or about the Building or
         Property is prohibited. Tenant shall cooperate and use its best efforts
         to prevent the same.

10.      Tenant shall not use the Premises in any manner which would overload
         the standard heating, ventilating or air conditioning systems of the
         Building.

11.      Tenant shall not utilize any equipment or apparatus in such manner as
         to create any magnetic fields or waves which adversely affect or
         interfere with the operation of any systems or equipment in the
         Building or Property.

12.      Bicycles and other vehicles are not permitted inside or on the walkways
         outside the Building, except in those areas specifically designated by
         Landlord for such purposes.

13.      Tenant shall not operate or permit to be operated on the Premises any
         coin or token operated vending machine or similar device (including,
         without limitation, telephones, lockers, toilets, scales, amusements
         devices and machines for sale of beverages, foods, candy, cigarettes or
         other goods), except for those vending machines or similar devices
         which are for the sole and exclusive use of Tenant's employees, and
         then only if such operation does not violate the lease of any other
         tenant in the Building.

14.      Tenant shall utilize the termite and pest extermination service
         designated by Landlord to control termites and pests in the Premises.
         Except as included in Basic Costs, Tenant shall bear the cost and
         expense of such extermination services.

15.      Tenant shall not open or permit to be opened any window in the
         Premises. This provision shall not be construed as limiting access of
         Tenant to any balcony adjoining the Premises.

16.      To the extent permitted by law, Tenant shall not permit picketing or
         other union activity involving its employees or agents in the Building
         or on the Property, except in those locations and subject to time and
         other constraints as to which Landlord may give its prior written
         consent, which consent may be withheld in Landlord's sole discretion.

17.      Tenant shall comply with all applicable laws, ordinances, governmental
         orders or regulations and applicable orders or directions from any
         public office or body having jurisdiction, with respect to the
         Premises, the Building, the Property and their respective use or
         occupancy thereof. Tenant shall not make or permit any use of the
         Premises, the Building or the Property, respectively, which is directly
         or indirectly forbidden by law, ordinance, governmental regulation or
         order, or direction of applicable public authority, or which may be
         dangerous to person or property.

18.      Tenant shall not use or occupy the Premises in any manner or for any
         purpose which would injure the reputation or impair the present or
         future value of the Premises, the Building or the Property; without
         limiting the foregoing, Tenant shall not use or permit the Premises or
         any portion thereof to be used for lodging, sleeping or for any illegal
         purpose.

                                       C-2
<PAGE>   37
19.      All deliveries to or from the Premises shall be made only at times, in
         the areas and through the entrances and exits designated for such
         purposes by Landlord. Tenant shall not permit the process of receiving
         deliveries to or from the Premises outside of said areas or in a manner
         which may interfere with the use by any other tenant of its premises or
         any common areas, any pedestrian use of such area, or any use which is
         inconsistent with good business practice.

20.      Tenant shall carry out Tenant's permitted repair, maintenance,
         alterations, and improvements in the Premises only during times agreed
         to in advance by Landlord and in a manner which will not interfere with
         the rights of other tenants in the Building.

21.      Landlord may from time to time adopt appropriate systems and procedures
         for the security or safety of the Building, its occupants, entry and
         use, or its contents. Tenant, Tenant's agents, employees, contractors,
         guests and invitees shall comply with Landlord's reasonable
         requirements thereto.

22.      Landlord shall have the right to prohibit the use of the name of the
         Building or any other publicity by Tenant that in Landlord's opinion
         may tend to impair the reputation of the Building or its desirability
         for Landlord or its other tenants. Upon written notice from Landlord,
         Tenant will refrain from and/or discontinue such publicity immediately.

23.      Neither Tenant nor any of its employees, agents, contractors, invitees
         or customers shall smoke in any area designated by Landlord (whether
         through the posting of a "no smoking" sign or otherwise) as a "no
         smoking" area. In no event shall Tenant or any of its employees,
         agents, contractors, invitees or customers smoke in the hallways or
         bathrooms of the Building. Landlord reserves the right to designate,
         from time to time, additional areas of the Building and the Property as
         "no smoking" areas and to designate the entire Building and the
         Property as a "no smoking" area.

                                      C-3
<PAGE>   38
                                    EXHIBIT D

                             PAYMENT OF BASIC COSTS

This Exhibit D is attached to and made a part of the Lease dated 5/26/00 by and
between MONY/BDP OFFICE I, A COLORADO LIMITED LIABILITY COMPANY ("LANDLORD") AND
INTEGRATED INFORMATION SYSTEMS, INC., A DELAWARE CORPORATION ("TENANT") for
space in the Building located at 11551 East Arapahoe Road, Suite 150, Englewood,
CO 80112.

A. During each calendar year, or portion thereof, falling within the Lease Term,
Tenant shall pay to Landlord as Additional Rent hereunder Tenant's Pro Rata
Share of the amount by which Basic Costs (as defined below) for the applicable
calendar year in exceed the amount of Six and 93/100 Dollars ($6.93) per
rentable square foot of the Building (the "Expense Stop"). Prior to January 1 of
each calendar year during the Lease Term, or as soon thereafter as practical,
Landlord shall make a good faith estimate of Basic Costs for the applicable full
or partial calendar year and Tenant's Pro Rata Share of the excess costs over
the Expense Stop thereof. On or before the first day of each month during such
calendar year, Tenant shall pay Landlord, as Additional Rent, a monthly
installment equal to one-twelfth of Tenant's Pro Rata Share of Landlord's
estimate of the amount by which Basic Costs for such calendar year will exceed
the Expense Stop ("Tenant's Excess Share"). Landlord shall have the right from
time to time during any such calendar year to revise the estimate of Basic Costs
for such year and provide Tenant with a revised statement therefor (provided,
however, Landlord agrees that Landlord shall not issue a revised statement more
than twice in any calendar year), and thereafter the amount Tenant shall pay
each month shall be based upon such revised estimate. If Landlord does not
provide Tenant with an estimate of the Basic Costs and Tenant's Excess Share by
January 1 of any calendar year, Tenant shall continue to pay a monthly
installment based on the previous year's estimate until such time as Landlord
provides Tenant with an estimate of Basic Costs and Tenant's Excess Share for
the current year. Upon receipt of such current year's estimate, an adjustment
shall be made for any month during the current year with respect to which Tenant
paid Tenant's Excess Share based on the previous years estimate. Tenant shall
pay Landlord for any underpayment with the next month's payment of Additional
Rent. Any overpayment shall, at Tenant's option, be refunded to Tenant or
credited against the installment(s) of Additional Rent next coming due under the
Lease (or Base Rent if no Additional Rent is so payable by Tenant in the next
year based on Landlord's estimate of Basic Costs). Any amount paid by Tenant
based on any estimate shall be subject to adjustment pursuant to Paragraph B
below, when actual Basic Costs in excess of the Expense Stop are determined for
such calendar year.

B. As soon as is practical following the end of the calendar year during the
Lease Term but not later than May 1, Landlord shall furnish to Tenant a
statement of Landlord's actual Basic Costs for the previous calendar year. If
for any calendar year the Tenant's Excess Share collected for the prior year, as
a result of Landlord's estimate of Basic Costs is more than the actual Tenant's
Excess Share (based on the actual Basic Cost), then Landlord shall refund to
Tenant any overpayment (or at Landlord's option apply such amount against the
next Tenant Excess Share payment(s) to become due hereunder). Likewise, Tenant
shall pay to Landlord, with the following month's Additional Rent payment, any
underpayment with respect to the prior year whether or not the lease has
terminated prior to receipt by Tenant of a statement for such underpayment, it
being understood that this clause shall survive the expiration of the Lease.

C. Basic Costs shall mean all direct and indirect costs, expenses paid and
disbursements of every kind (subject to the limitations set forth below) which
Landlord incurs, pays or becomes obligated to pay in each calendar year in

                                       D-1
<PAGE>   39
connection with operating, maintaining, repairing, owning and managing the
Building and the Project including but not limited to, the following:

(1)      All labor costs for all persons performing services required or
         utilized in connection with the operation, repair, replacement and
         maintenance of and control of access to the Building and the Project,
         including but not limited to amounts incurred for wages, salaries and
         other compensation for services, professional training, payroll, social
         security, unemployment and other similar taxes, workers' compensation
         insurance, training, disability benefits, pensions, hospitalization,
         retirement plans, group insurance or any other similar or like expenses
         or benefits.

(2)      All management fees (not to exceed 3% of gross rental during the lease
         term), the cost of equipping and maintaining a management office at the
         Building not to exceed 1,000 rentable square feet at marketable rate
         rent, accounting services, legal fees not attributable to leasing and
         collection activity, and all other administrative costs relating to the
         Building and the Property.

(3)      All Rent and/or purchase costs of materials, supplies, tools and
         equipment used in the operation, repair, replacement and maintenance
         and the control of access to the Building and the Property.

(4)      All amounts charged to Landlord by contractors and/or suppliers for
         services, replacement parts, components, materials, equipment and
         supplies furnished in connection with the operation, repair,
         maintenance, replacement and control of access to any part of the
         Building, or the Property generally, including the heating, air
         conditioning, ventilating, plumbing, electrical, elevator and other
         systems and equipment of the Building and the garage. At Landlord's
         option, major repair items may be amortized over a period of up to five
         (5) years or largest period permitted.

(5)      All premiums and deductibles paid by Landlord for fire, flood and
         extended insurance coverage, earthquake and extended coverage
         insurance, liability and extended coverage insurance, Rent loss
         insurance, elevator insurance, boiler insurance and other insurance
         customarily carried from time to time by landlords of comparable office
         buildings or required to be carried by Landlord's mortgagee.

(6)      Charges for all utilities, including but not limited to water,
         electricity, gas and sewer, but excluding those electrical charges for
         which tenants are individually responsible.

(7)      "TAXES", which for purposes hereof, shall mean (a) all real estate
         taxes and assessments on the Property, the Building or the Premises,
         and taxes and assessments levied in substitution or supplementation in
         whole or in part of such taxes, (b) all personal property taxes for the
         Building's personal property, including license expenses, (c) all
         sales, use or other tax, excluding state and/or federal income tax now
         or hereafter imposed by any governmental authority upon Rent received
         by Landlord, (e) all other taxes, fees or assessments now or hereafter
         levied by any governmental authority on the Property, the Building or
         its contents or on the operation and use thereof (except as relate to
         specific tenants), and (f) all costs and fees incurred in connection
         with seeking reductions in or refunds in Taxes including, without
         limitation, any costs incurred by Landlord to challenge the tax
         valuation of the Building or Property, but excluding income taxes.
         Estimates of real estate taxes and assessments for any calendar year
         during the Lease Term shall be determined based on Landlord's good
         faith estimate of the real estate taxes and assessments. Taxes and
         assessments hereunder are those accrued with respect to such calendar
         year, as opposed to the real estate taxes and assessments paid or
         payable for such calendar year. For purposes of this Lease, any special
         assessments shall be deemed payable in such maximum number of
         installments as is permitted by law, whether or not actually so paid,
         and the taxes for the year 2000 shall be set as though the Building is
         fully completed and assessed for the entire year 2000.

                                       D-2
<PAGE>   40
(8)      All landscape expenses and costs of repairing, resurfacing and striping
         of the parking areas and garages of the Property, if any.

(9)      Cost of all maintenance service agreements, including those for
         equipment, alarm service, window cleaning, drapery or mini-blind
         cleaning, janitorial services, metal refinishing, pest control,
         landscaping and any parking equipment.

(10)     Cost of all other repairs, replacements and general maintenance of the
         Property and Building neither specified above nor directly billed to
         tenants, including the cost of maintaining all interior Common Areas
         including lobbies, multi-tenant hallways, restrooms and service areas.

(11)     The amortized cost of capital improvements made to the Building or the
         Property which are (a) for the purpose of reducing operating expense
         costs or otherwise improving the operating efficiency of the Property
         or Building ("Cost Savings Improvements"); or (b) required to comply
         with any laws, rules or regulations of any governmental authority
         enacted or promulgated after the Commencement Date, including any new
         interpretation of any existing law, rule or regulation issued after the
         Commencement Date ("Required Capital Improvement"). The cost of such
         Cost Savings Improvements and Required Improvements shall be amortized
         over a period of five (5) years or the useful life of said Required
         Capital Improvement as determined by GAAP, whichever is longer, and
         shall, at Landlord's option, include interest at 8%. Only the amount of
         such yearly amortization shall be included in Basic Costs for a given
         year.

(12)     Any other charge or expense of any nature whatsoever which, in
         accordance with general industry practice with respect to the operation
         of a first class office building, would be construed as an operating
         expense.

D. "Operating Expenses" shall not include (a) costs of work, including painting
and decorating and tenant improvement work, which Landlord performs for any
tenant in the Building which is not for the benefit of all or most tenants of
the Building; (b) costs of repairs or other work occasioned by fire, windstorm
or other insured casualty to the extent of insurance proceeds received by
Landlord and provided, that Landlord shall have obtained all insurance in the
form and amounts herein required hereunder; (c) leasing commissions, advertising
expenses, and other costs incurred in leasing space in the Building; (d) costs
of repairs or rebuilding necessitated by condemnation; (e) any interest on
borrowed money or debt amortization on Landlord's Mortgages on the Building; (f)
depreciation on the Building; (g) wages, salaries, fees, and fringe benefits
paid to individuals who are above the level of building manager or who are
executive personnel or officers or partners of Landlord (h) other than as
provided in Section C above, any charge for depreciation of the Building or
equipment and any interest or other financing charge; (i) any charge for
Landlord's income taxes, excess profit taxes, franchise taxes, or similar taxes
on Landlord's business; (j) all costs for which Tenant or any other tenant in
the Building is being charged directly (including, but not limited to excess
usage charges); (k) the costs of correcting defects in the construction of the
Building, or in the building equipment, due to defective or illegal
construction; (l) the cost of any repair made by Landlord because of the total
or partial destruction of the Building, or the condemnation of a portion of the
Building; (m) the cost of any items for which Landlord is reimbursed by
insurance or otherwise compensated by parties other than tenants of the Building
or the cost of any increase in insurance premiums to the extent that such
increase is solely and directly attributable to the use, occupancy or activity
of another tenant in the Building; (n) other than Required Capital Improvements
or Cost Savings Improvements, the cost of any additions or capital improvements,
repairs or replacements to the Building subsequent to the date of original
construction; (o) the cost of any removal, treatment or abatement or asbestos or
any other hazardous substance or gas in the Building or on Tenant's Premises
(however, to the extent such asbestos or hazardous substance results from
Tenant's or its agents' actions or inactions, such costs shall be reimbursed to
Landlord by Tenant as Tenant's direct expense); (p) any operating expenses
representing an amount paid to a related corporation, entity, or person which is
in excess of the amount which would be paid in the absence of such relationship;
(q) the cost of tools and equipment used initially in the construction of the
Building; (r) the cost

                                       D-3
<PAGE>   41
of alterations of space in the Building lease to other tenants; (s) the cost of
overtime or other expense to Landlord in curing its defaults or performing work
expressly provided in this Lease to be borne at Landlord's expense; (t) ground
rent or similar payments to ground lessor; (u) late payments, charges and
penalties; (v) costs associated with the operation of the business of the
corporation which constitutes Landlord as the same or distinguished from the
costs of operation of the Building; (x) costs (including in connection therewith
all attorneys' fees and costs of settlement, judgments and/or payments in lieu
thereof) arising from claims, disputes or potential disputes in connection with
potential or actual claims litigation or arbitration pertaining to Landlord
and/or the Building, other than such claims or disputes respecting any services
or equipment used in the operation of the Building by Landlord, the cost of
which is included in Basic Costs; and (z) the wages and benefits of any employee
who does not devote substantially all of his or her employed time to the
Building unless such wages and benefits are prorated to reflect time spent on
operating and managing the Building. It is understood that Basic Costs shall be
reduced by all cash discounts, trade discounts, or quantity discounts received
by Landlord or Landlord's managing agent in the purchase of any goods,
utilities, or services in connection with the operation of the Building.
Landlord shall make payments of goods, utilities and services in a timely manner
to obtain the maximum possible discount. In the calculation of any expenses
hereunder, it is understood that no expense shall be charged more than once.
Landlord shall use its best efforts to effect any equitable proration of bills
for services rendered to the Building and to any other property owned by
Landlord. Landlord agrees to keep books and records showing the Basic Costs in
accordance with a system of accounts and accounting practices consistently
maintained on a year-to-year basis.

E. If the Building and the other buildings Landlord operates in conjunction
therewith are not at least one hundred percent (100%) occupied, in the
aggregate, during any calendar year of the Lease Term or if Landlord is not
supplying services to at least one hundred percent (100%) of the Approximate
Rentable Area of the Building and such other buildings at any time during any
calendar year of the Lease Term, actual Basic Costs for purposes hereof shall,
at Landlord's option, be determined as if the Building and such other buildings
had been one hundred percent (100%) occupied and Landlord had been supplying
services to one hundred percent (100%) of the Approximate Rentable Area of the
Building and such other buildings during such year. If Tenant pays for its Pro
Rata Share of Basic Costs based on increases over a Expense Stop and Basic Costs
for any calendar year during the Lease Term are determined as provided in the
foregoing sentence, Basic Costs for such Expense Stop shall also be determined
as if the Building and such other buildings had been one hundred percent (100%)
occupied and Landlord had been supplying services to one hundred percent (100%)
of the Approximate Rentable Area of the Building; and such other buildings.

F. If Tenant questions the amount of Basic Costs or Tenant's Excess Share as
shown by a year-end statement, Tenant shall notify Landlord. Tenant shall have
120 days after giving notice (i) to hire, at Tenant's sole expense, an
accredited member of the Colorado Society of CPAs or (ii) direct a Tenant
employed by CPA (either "Tenant's Accountants"), to examine Landlord's books and
records for the purpose of verifying the accuracy of the statement. If Tenant's
Accountants determine that an error has been made, notice describing the error
in reasonable detail must be given to Landlord and if such notice is given,
Landlord and Tenant shall endeavor to agree upon the matter within the following
90 days. All information disclosed to Tenant or Tenant's Accountants in
connection with any such review shall be kept confidential by Tenant and
Tenant's Accountants and shall not be disclosed or used by Tenant or Tenant's
Accountants for any reason other than to verify information set forth in the
statement. Notwithstanding the pendency of any dispute over any particular
statement, Tenant shall continue to pay Landlord the amount of the adjusted
monthly installments of Additional Rent based upon the statement until the
dispute is resolved. Delay by Landlord in submitting any statement for any Lease
Year shall not affect the provisions of this Section or constitute a waiver of
Landlord's rights set forth herein for that or any subsequent Lease Year. In the
event that any audit conduct by Tenant, pursuant to the terms hereof, discloses
that Landlord has overstated the payment of Tenant's Excess Share required from
Tenant as set forth on the then applicable statement by 3% or more, then
Landlord will reimburse (or credit against subsequent rent payments) Tenant (in
additional to the excess Additional Rent

                                       D-4
<PAGE>   42
previously paid by Tenant as hereinabove provided) for the actual reasonable
cost of the audit within 30 days after Tenant provides Landlord with a statement
of the audit cost.

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

WITNESS/ATTEST                          LANDLORD:

                                        MONY/BDP Office, L.L.C., a Colorado
                                        Limited Liability company
                                        TRANSWESTERN INVESTMENT COMPANY,
                                        L.L.C. AS AGENT

By: /s/ Jeanette P. Puemo               By: /s/ SCOTT A. TAUSK

Name: Jeanette P. Puemo                 Name: SCOTT A. TAUSK

Title: Admin. Associate                 Title: SENIOR VICE PRESIDENT

WITNESS/ATTEST                          TENANT:

                                        Integrated Information Systems, Inc.,
                                        a Delaware Corporation

By: /s/ Glen A. Honig                   By: /s/ Jeffrey Frankel

Name: Glen A. Honig                     Name: Jeffrey Frankel

Title: Associate General Counsel        Title: Vice President and Corp. Counsel

                                       D-5
<PAGE>   43
                                    EXHIBIT E

                                   WORK LETTER

This Work Letter Agreement supplements and is hereby incorporated in that
certain lease (hereinafter referred to as the "Lease") dated and executed
concurrently herewith by and between MONY/BDP Office I, L.L.C., a Colorado
Limited Liability company (hereinafter referred to as "Landlord") and Integrated
Information Systems, Inc., a Delaware Corporation (hereinafter referred to as
"Tenant") with the terms defined in the Lease to have the same definition where
used herein.

         1. The Premises are leased to Tenant in their "AS IS" condition, except
for those improvements as defined in Exhibit "E-1" (the "Base Building Shell
and Core Condition") and this Work Letter Agreement is intended to set forth the
obligations of Landlord and Tenant with respect to the preparation of the
Premises for Tenant's occupancy. All improvements described in this Work Letter
Agreement to be constructed in and upon the Premises are hereinafter referred to
as the "Tenant Improvements." It is agreed that construction of the Tenant
Improvements will be completed in accordance with the procedures set forth in
this Work Letter Agreement.

         2. Tenant shall devote such time in consultation with Landlord or
Landlord's agent as may be required to provide all necessary information to
Landlord or Landlord's agent as Landlord deems necessary in order to enable
Landlord to complete, and obtain Tenant's written approval of, the final layout,
drawings, and plans for the Premises. If Tenant fails to furnish any such
information, or fails to approve OR DISAPPROVE layout, drawings, or plans within
five (5) Business Days after written request, Landlord may, at its election, be
discharged of its obligations under this Work Letter Agreement, but the same
shall not affect or diminish Tenant's duties and obligations set forth in the
Lease, and Tenant agrees to pay on demand all costs and expenses and increased
unit prices incurred by Landlord on account of Tenant's failure to furnish such
information and approved drawings within such prescribed times. All of
Tenant's plans and specifications shall be subject to Landlord's consent, the
granting or denial of which shall be in Landlord's REASONABLE discretion.

         3. Space planning and construction drawings, and when deemed necessary
by Landlord, engineering drawings, shall be prepared by Landlord's architect.
Unless otherwise provided in Exhibit "E-2" (the "Tenant Improvement Allowance"),
Tenant shall pay for additional space planning services beyond those specified
above, for Landlord's standard construction and engineering drawings covering
Landlord's Building Standard materials as defined in Exhibit "E-3" (the
"Landlord's Building Standard Materials"), and for any nonstandard construction
and engineering drawings, or any additional costs for drawings occasioned by
special installation other than Building Standard. Tenant may pay for such
services out of the Allowance, if any, provided in Exhibit "E-2". Tenant shall
furthermore be responsible for the design, function and maintenance of all
special improvements, whether installed by Landlord at Tenant's request or
installed by Tenant with Landlord's prior written approval. Tenant shall use the
Building Standard materials unless other materials are expressly approved in
writing by Landlord.

         4. Prior to commencing any construction of Tenant Improvements,
Landlord shall submit to Tenant a written estimate setting forth the anticipated
cost of the Tenant Improvements (excluding any costs which may be specified
herein or in Exhibit "E-2" as being borne by Landlord), including but not
limited to labor and materials, contractor's fees, Landlord's construction
management fees not to exceed 2% of total construction costs, permit fees, space
planning, initial space planning drawings (to include one revision),
construction, and engineering drawing costs.

                                      E-1

<PAGE>   44
Within five (5) Business Days Tenant shall either notify Landlord in writing of
its approval of the cost estimate, or specify its objections thereto and
desired changes to the proposed Tenant Improvements. In the event Tenant
notifies Landlord of such objections and desired changes, Tenant shall work with
Landlord to reach acceptable plans and cost estimate; provided, however, if
Tenant fails to give written approval of a cost estimate within ten (10)
Business Days following delivery to Tenant of the original cost estimate, Tenant
shall be chargeable with one day of Delay for each day thereafter until Tenant
provides to Landlord in writing its approval of a cost estimate.

         5. In the event Landlord's estimate and/or the actual cost of
construction shall exceed the Allowance, (as defined in Exhibit "E-2" attached
hereto), if any (such amounts exceeding the Allowance being herein referred to
as the "Excess Costs"), Tenant shall pay to Landlord such Excess Costs PROVIDED,
HOWEVER, THAT LANDLORD SUBMITS A DETAILED, ITEMIZED SUMMARY OF THE EXCESS COSTS,
as follows:

                  (a) Tenant shall deliver to Landlord, with its approval of the
         Landlord's estimate, and in any event prior to commencement of
         construction, an amount equal to fifty percent (50%) of the Excess
         Costs as then estimated by Landlord.

                  (b) After substantial completion of the Tenant Improvements,
         but prior to occupancy of the Premises by Tenant, Tenant shall pay to
         Landlord on demand an amount which when added to the initial payment
         described in subparagraph (a) above equals ninety percent (90%) of the
         Excess Costs as then estimated by Landlord.

                  (c) As soon as the final accounting can be prepared and
         submitted to Tenant, Tenant shall pay on demand to Landlord the entire
         balance of the Excess Costs based upon the actual cost of construction.

The statements of costs submitted to Landlord by Landlord's contractors AND
ACTUALLY PAID OR TO BE PAID BY LANDLORD shall be conclusive for purposes of
determining the actual cost of the items described therein. The amounts payable
hereunder constitute other rent payable pursuant to the Lease, and the failure
to timely pay same constitutes an event of default under the Lease.

         6. If Tenant shall request any change, addition or alteration in the
working drawings, after approval by Landlord and Tenant, Landlord shall have
such working drawings prepared, and Tenant shall promptly reimburse Landlord for
the cost thereof. Promptly upon completion of the revisions, Landlord shall
notify Tenant in writing of the cost which will be chargeable to Tenant by
reason of such change, addition or deletion. Tenant shall, within three (3)
Business Days, notify Landlord in writing whether it desires to proceed with
such change, addition or deletion. In the absence of such written authorization,
Landlord shall have the option to continue work on the Premises disregarding the
requested change, addition or alteration, or Landlord may elect to discontinue
work on the Premises, in which event Tenant shall be chargeable with a Delay in
completion of the Premises resulting therefrom in accordance with Paragraph 3(a)
of the Lease. In the event such revisions result in a higher estimate of the
cost of construction, Tenant shall pay to Landlord an amount sufficient to
provide Landlord with the above described fifty percent (50%) (or if applicable
ninety percent (90%)) payment toward Excess Costs.

         7. Following approval of the plans and the payment by Tenant of the
required portion of the Excess Costs, if any, Landlord shall cause the Tenant
Improvements to be constructed in accordance with the approved plans. Unless
otherwise specifically provided in the approved plans, all material used in the
construction of the Tenant's Improvements shall be of such quality as determined
by the Landlord's architect.

                                      E-2

<PAGE>   45
WITNESS/ATTEST                          LANDLORD:

                                        MONY/BDP Office I, L.L.C., a Colorado
                                        Limited Liability Company
                                        TRANSWESTERN INVESTMENT COMPANY, L.L.C.
                                        AS AGENT

By: /s/ Jeanette P. Puemo               By: /s/ Scott A. Tausk

Name: Jeanette P. Puemo                 Name:  SCOTT A. TAUSK

Title: Admin Associate                  Title: SENIOR VICE PRESIDENT

WITNESS/ATTEST                          TENANT:

                                        Integrated Information Systems, Inc.,
                                        a Delaware Corporation

By: /s/ Glen A. Honig                   By: /s/ Jeffrey Frankel

Name: Glen A. Honig                     Name: Jeffrey Frankel

Title: Associate General Counsel        Title: VP & Corp. Counsel

                                      E-3
<PAGE>   46
                                  EXHIBIT E-1

                     BASE BUILDING SHELL AND CORE CONDITION

SHELL and CORE CONSTRUCTION

Site Work and Earthwork
        Sanitary Sewer, Domestic Water Fire Line and Storm Sewer to the building
        Landscaping and irrigation system
        Parking and drives, including parking lot lighting
        Exterior building and lighting
        Exterior building address signs

Concrete
        Foundation system
        Floor slab, unfinished concrete
        Building exterior is masonry construction with EIFS (Extension
        Insulation and Finish System) accents

Common Areas
        Two-story entrance lobby entrance, from west and east parking areas
        One (1) passenger elevator

        Two restrooms per floor are provided per building code with floor mount
        tank-style toilets, in counter sinks with wall mounted mirrors above,
        and with building standard ceramic tile flooring.

Metals
        Structural steel frame with cast-in-place floors and roof deck

Thermal and Moisture Protection
        Ballasted EPDM 45 mil. Synthetic rubber roof with a 10 year warranty
        R-19 ISO roof insulation

Doors, Windows, Glass
        6'-8" and 6'-0" tall, tinted, low E glass in anodized aluminum frames
        Mini-blinds, 1" Levolor type, Riviera style, almond color.

Finishes
        Exterior walls insulated and unfinished
        First floor ceiling height of 12 feet, second floor ceiling height of
          10 feet

Mechanical

        ELO fire sprinkler system on standard grid with heads at standard
          elevations
        Rooftop mounted, 2-130 ton packaged Trane Heating Venting & Air
          Conditioning units, 1 ton per 330 rsf.
        The main lateral trunk lines shall be installed for future connection
          of the fan powered and VAV boxes.
        Exterior fan powered heating, venting and air conditioning boxes, as
          well as interior pinch down, variable air volume boxes furnished to
          accommodate Tenant's Construction Drawings, in compliance with
          standards set forth in Section 7.A.(2). The cost to install and
          distribute such boxes shall be at Tenant's expense and shall be
          included in the Tenant Improvements.

Plumbing

        6" sanitary sewer line under the slab on grade the length of the
          buildings
        1-1/2" copper domestic water supply line within the bar joists running
          the length of the buildings
        Wet stack columns in the north and south ends of the wings

                                     E-1-1
<PAGE>   47
Electrical/Telecommunications
         Base building electrical service, main disconnect of 3,000 amps,
                  480/277, 3 phase service to the main electrical room.
                  Secondary electrical service from the electrical rooms located
                  in the core area of the south wings. Each tenant will receive
                  its pro-rata share of the total 3,000 amp service, 5 watts per
                  s.f. electrical capacity (connected load) available for tenant
                  use, excluding lighting
         Telephone service by US WEST to the main telephone exterior panel,
                  served by one (1) four inch (4") conduit from the street
                  telephone pedestal, adjacent to the Nome Street, north of the
                  building's main entrance. 900 pair copper service is
                  provisioned, with 600 pair activated and 300 in reserve.
         Fiber Optic Service to be provided by US WEST from their existing
                  fiber on the south side of Arapahoe Road to the north on Nome
                  Street telephone pedestal. Landlord has installed three (3)
                  four inch (4") conduits from to the north wing telephone room
                  to the Nome Street outside pedestal. Additional service
                  providers will be granted access to the building to provide
                  additional tenant fiber optic service.

Special Improvements
         Magnetic card key access
         HVAC controls from dial up telephone modem
                                     E-1-2
<PAGE>   48
                                   EXHIBIT E-2

                          TENANT IMPROVEMENT ALLOWANCE

Landlord agrees to provide Tenant an allowance (the "Allowance") of $21.50 per
square foot of Rentable Area in the Premises (which for purposes hereof is
agreed to be 11,138 square feet), being the total sum of Two Hundred Thirty-nine
Thousand Four Hundred Sixty-seven and 00/00 Dollars ($239,467.00) toward the
cost of the Tenant Improvements. Tenant shall not be entitled to any credit for
any amount not applied to the cost of the Tenant Improvements. In the event the
Allowance or Additional Allowance set forth below shall not be sufficient to
complete the improvements contemplated by the approved plans, Tenant shall pay
the Excess Costs as prescribed in Exhibit "E".

In addition to the Allowance set forth herein, Landlord shall agree to provide
Tenant with an additional allowance (the "Additional Allowance") of up to $3.50
per square foot of the Rentable Area in the Premises, being the total sum of
Thirty-eight Thousand Nine Hundred Eighty-three and 00/100's Dollars
($38,983.00) towards the cost of the Tenant Improvements. Tenant may request all
or a portion of the Additional Allowance by providing Landlord with prior
written notice at any time within six (6) months of the Commencement Date of
this Lease. Tenant shall not be entitled to subsequently request payment of any
amount of such Additional Allowance that is not initially requested. Landlord
shall agree that such Additional Allowance utilized by Tenant shall be amortized
either: a.) over a 60 month period (payable rent period), or b.) over a period
equal to the number of months remaining in the Lease Term, as of Tenant's notice
date herein above. The Additional Allowance shall be amortized at an interest
rate of eleven percent (11%) per year, on a fully amortizing basis, with
payments made at the beginning of the payment period. Landlord shall agree to
revise the monthly Base Rent amounts set forth herein to include the monthly
amortization amount, which shall be payable for the applicable period of the
Lease Term. Tenant shall not be required to provide Landlord with any additional
security under the Letter of Credit, but shall agree to provide Landlord with an
additional Security Deposit amount equal to one month's Additional Allowance
payment.

                                      E-2-1
<PAGE>   49
                                  EXHIBIT E-3

                     LANDLORD'S BUILDING STANDARD MATERIALS

The following outlines the building standard materials that are to be utilized
in the construction of all Tenant Improvements and all Tenant Improvement work
shall be in accordance with Exhibit D, the Work Letter Agreement.

GENERAL:

-    Demising wall is full height to structure and gypsum board above ceiling is
     fire-taped only.

-    Interior doors are building standard 3'0" x 9'10" on first floor and 3'0"-x
     8'-10" on the second floor and selected white birch stained flush doors in
     painted, full welded hollow metal frames with building standard latchset
     hardware.

     -   1 door per 200 square feet of office area.

-    Interior walls are gypsum board to ceiling with painted 2 coats of interior
     latex.

     -   1 lineal foot of wall per 9 square feet of office area.

-    Sound insulation batts in inter-tenant demising walls at office area only
     to above ceiling line.

-    Suspended acoustical panel ceiling at 10'-0" on the first floor and 9'-0"
     on the second floor, with 2'x4' grid and "Second Look II", scored,
     tegular edge lay-in panels.

-    Lighting is 2'x 4' 3 lamp recessed fluorescent deep cell parabolic
     troffers.

     -   1 fixture per 80 square feet of office area.

-    Electrical outlets are provided at 2 per office area.

-    Telephone outlet boxes are provided at 1 per office or room.

-    Flooring is glued-down 26 oz. level-loop carpet: Philadelphia "Volunteer",
     "Winchester", or "Neyland".

-    Work area flooring will be: Armstrong "Standard Excalon" or
      standard carpet.

-    Space is fully sprinklered at standard layout. Sprinkler heads are
     semi-recessed pendant type to meet code for office layout.

-    Mini-blinds, 1" Levolor type, Riviera style, almond color.

STANDARD UPGRADES: (May also impact schedule)

-    Coffee bar cabinets: Building standard cabinets will be: LJE full overlay
     plastic laminate in gray color. Countertop laminate color is Tenant choice.

-    Coffee bar plumbing including sinks and disposals.

-    Sound insulation in interior office demising walls.

NON-STANDARD ITEMS: (May also impact schedule)

-    Special provisions due to hazardous materials.

-    Delivery or dock doors.

-    Shelving.

                                      E-3-1
<PAGE>   50
                                    EXHIBIT F

                              ADDITIONAL PROVISIONS

36.      RIGHT OF FIRST OFFER. Landlord hereby grants to Tenant a right of first
         offer (the "Right of First Offer") to lease an additional 5,644 rsf,
         located on the first floor of the south wing of the Project. The
         space (the "Right of First Offer Space") shall be made available on the
         following basis:

         a. Tenant shall have SEVEN (7) Business Days after being notified by
Landlord, in writing, of Landlord's desire to lease the Right of First Offer
Space (which notice is hereinafter referred to as "Landlord's Notice") within
which to notify Landlord, in writing, if Tenant desires to exercise its Right of
First Offer as to such space. Tenant's Right of First Offer hereunder shall be
subject and subordinate to all leases, rights of extension, expansion, or first
offer or refusal as to the Right of First Offer Space in favor of other tenants
in the Building in existence as of the date of this Lease. Landlord shall have
the right to determine the exact square footage of the Right of First Offer
Space at the time such space or any portion thereof is offered to Tenant
pursuant to the provisions of this Paragraph.

         b. Such space shall be offered to Tenant upon the terms and conditions
and at the rental rate Landlord would quote to third parties for the Right of
First Offer Space, if it were to become available for leasing for a lease term
scheduled to commence at the time of the addition of the Right of First Offer
Space, but in no event shall the rental rate be less than the rent which Tenant
is then paying. Such terms and conditions may include, among other things,
escalations and pass-throughs. If Tenant exercises its right to lease the Right
of First Offer Space anytime during the first six (6) months of the initial
lease term, such space shall be made available at the same rental rate as the
initially leased Premises, except that Landlord's contributions, including but
not limited to tenant improvement allowances and real estate commissions, shall
be adjusted on a pro-rata basis to reflect the remaining time period in the
initial lease term.

         c. If Tenant does not notify Landlord within such SEVEN (7) day period,
it shall be conclusively presumed that Tenant does not desire to exercise its
Right of First Offer, Landlord shall be free to lease such space to anyone whom
it desires, and Tenant shall have no further rights with respect to such space.

         d. Except as set forth in Section 36(b), if Tenant elects to add the
Right of First Offer Space to the Lease, Tenant will accept such space in its
"as is" condition without any remodeling work or tenant improvement work being
performed by Landlord, except as may be provided in Landlord's Notice. All costs
in connection with preparing the Right of First Offer Space for occupancy by
Tenant, including but not limited to costs of compliance with all applicable
laws, codes, or ordinances, shall be borne by Tenant.

         e. If Landlord has entered into lease negotiations with a third party
for space which is greater than but includes the Right of First Offer Space,
then, in order to exercise the Right of First Offer granted herein, Tenant shall
(i) be obligated to take all the space the third party would lease under said
negotiations, and (ii) be obligated to extend the Lease Term for a period of
time from the date of exercise of the Right of First Offer comparable to the
length of time that the third party was willing to lease said space.
Notwithstanding the foregoing, Tenant must take all of the Right of First Offer
Space offered by Landlord to Tenant at any particular time and may not elect to
lease a portion thereof.

         f. All notifications contemplated by this Paragraph, whether from
Tenant to Landlord, or from Landlord to Tenant, shall be in writing and shall be
given in the manner provided in the Lease.

                                       F-1

<PAGE>   51
         g. Tenant's right to exercise the Right of First Offer shall be
conditioned on: (i) Tenant not being in default (beyond any applicable cure
period) under the Lease at the time of the exercise of the Right of First Offer
or as of the date on which Tenant's occupancy of the Right of First Offer Space
is scheduled to commence; (ii) Tenant not having subleased more than twenty-five
percent (25%) of the Premises or having vacated more than 25 percent (25%) of
the Premises as of the date on which Tenant's occupancy of the Right of First
Offer Space is scheduled to commence; and (iii) there being at least two (2)
years remaining in the initial Lease Term. Notwithstanding the foregoing, if
there is less than two (2) years remaining in the initial Lease Term but the
Right of First Offer would otherwise be available to Tenant hereunder and an
option to extend the initial Lease Term is then available to Tenant under the
other provisions of this Lease, Tenant shall have the right to exercise its
Right of First Offer provided that Tenant simultaneously exercises its option to
extend the initial Lease Term.

                                       F-2

<PAGE>   52
                                    EXHIBIT G

                                 RENEWAL OPTION

Tenant shall have an option to extend the Lease for one (1) additional
consecutive term, consisting of five (5) years. In order to exercise such
option(s), Tenant shall notify Landlord in writing at least six (6) months prior
to the expiration of the respective lease term(s) of its election to exercise
the option, upon which time Landlord shall submit in writing within 30 days
thereafter a proposal for the then current Market Base Rental Rate (per rentable
square foot per annum) for the extended term. Tenant shall have thirty (30) days
from the receipt of said notice to (i) NEGOTIATE IN GOOD FAITH WITH LANDLORD AND
accept the NEGOTIATED Base Rental Rate in writing to Landlord or (ii) elect not
to extend. If Tenant elects not to extend or fails to timely exercise its
options, time being of the essence, the options shall automatically terminate
and be of no further force and effect and this Lease shall terminate upon
expiration of the then Lease terms. Any such extension shall be upon all of the
terms, conditions, and covenants of this Lease except as to (i) the amount of
Base Rent, which shall be determined as set forth herein, (ii) other than as
remain applicable under this Lease, options to extend, expand or rights of
refusal, which shall not be applicable, and (iii) Tenant Allowance or other
economic concessions which shall not be applicable to the extension term. As
used herein, "Market Base Rental Rate" shall mean the then Base Rental Rate for
comparable first class multi-tenant office buildings of comparable size,
location and age, with comparable tenants leasing comparable amounts of space,
in the County of Arapahoe, Colorado, at such time, taking into account the
following factors (1) rent per rentable square foot; (2) operating expenses and
real estate tax payments; (3) current rental escalators; and (4) rental
concessions, including tenant improvement allowances, if any, as applicable to
market renewals of leases.

This option to extend may not be exercised and the Lease shall not be extended
if Tenant is in default which default is not cured within any applicable cure
periods or if this Lease has been sublet or assigned other than to an Affiliated
Entity as set forth in Paragraph 13(a) hereof or as permitted in Paragraph 13(d)
hereof. Furthermore, time is of the essence hereof, any failure of Tenant to
give any notice required hereunder within the required time period shall render
this option null and void.

                                      G-1

<PAGE>   53
'                                   EXHIBIT H

                              COMMENCEMENT LETTER

Date

Tenant
Address

Re: Commencement Letter with respect to that certain Lease dated        by and
between                        as Landlord and                     , a(n)     as
Tenant for an Approximate Rentable Area in the Premises of              square
feet on the      floor of the Building located at          ,           ,       .

Dear      :

In accordance with the terms and conditions of the above referenced Lease,
Tenant hereby accepts possession of the premises and agrees as follows:

The Commencement Date of the Lease is                            ;
The Termination Date of the Lease is                             .

Landlord agrees to complete the work in the Premises identified in the punchlist
jointly prepared by Landlord and Tenant dated                              .

Please acknowledge your acceptance of possession and agreement to the terms set
forth above by signing all three (3) copies of this Commencement Letter in the
space provided and returning two (2) fully executed copies of the same to my
attention.

Sincerely,

XXXXXXXXX
Property Manager

Agreed and Accepted:

TENANT:

By:
Name:
Title:

                                      H-1
<PAGE>   54
                                    EXHIBIT I

                           STANDARD PARKING AGREEMENT

         Landlord shall make available to Tenant at the commencement of the term
of this Lease the use of up to fifty-six (56) (5 per 1,000 rentable square
feet), of the Building's parking spaces (the "Spaces") in the Building parking
lot (the "Parking Lot") on an unreserved basis. AT NO COST TO TENANT DURING THE
LEASE TERM OR ANY EXTENSION THEREOF.

         It is hereby agreed and understood that Landlord's sole obligation
hereunder is to make the Spaces available to Tenant. Tenant's right to the use
of such Spaces shall be subject to compliance with the rules and regulations
promulgated from time-to-time by the manager of such Parking Lot, and shall be
subject to termination for violation of any such rules or regulations upon prior
notice from such Landlord manager. Landlord shall have no liability whatsoever
for any property damage, loss or theft and/or personal injury which might occur
as a result of or in connection with the use of the Spaces by Tenant, its
employees, agents, servants, customers, invitees and licensees, and Tenant
hereby agrees to indemnify and hold Landlord harmless from and against any and
all costs, claims, expenses, and/or causes of action that Landlord may incur in
connection with or arising out of Tenant's use of the Spaces.

         The failure, for any reason, of Landlord to provide or make available
the Spaces to Tenant or the inability of Tenant to utilize these Spaces shall
under no circumstances be deemed a default by Landlord pursuant to the terms of
the Lease or give rise to any claim or cause of action by Tenant against
Landlord, the same being hereby expressly waived by Tenant. Tenants sole remedy
for such failure shall be the equitable abatement of Tenant's parking rental
fee.

                                      I-1

<PAGE>   55
                                   EXHIBIT J

                                LETTER OF CREDIT

         Letter of Credit. As security for the performance by Tenant of all of
the terms, covenants, and conditions required to be performed by it hereunder,
Tenant agrees to deposit with Landlord on or before execution and delivery of
this Lease by Tenant an irrevocable, transferable demand letter of credit in the
amount of One Hundred Eighty Thousand and 00/100's Dollars ($180,000.00) in
substantially the form attached hereto as Exhibit "K" issued by a bank
reasonably acceptable to Landlord (the "Letter of Credit"). The Letter of Credit
shall automatically renew every twelve months for a period through and including
the last day of the thirty-sixth (36th) calendar month of the Lease Term. If
after the last day of the twelfth (12th) calendar month of the Lease Term, no
demand has been previously made and Tenant is not in default of this Lease, the
then existing Letter of Credit shall be surrendered by Landlord provided a new
Letter of Credit is delivered to Landlord in an amount which is Sixty Thousand
and 00/100's Dollars ($60,000.00) less than the face value of such prior Letter
of Credit. The Letter of Credit shall every twelve (12) months thereafter, until
expiration of the Lease Term, continue to be replaced by a new Letter of Credit
in an amount which is Sixty Thousand and 00/100's Dollars ($60,000.00) less than
the face value of the then current Letter of Credit. Provided however that if an
event of default has occurred anytime during the first thirty-six (36) months of
the initial Lease Term, a Letter of Credit in the amount of Sixty Thousand and
00/100's Dollars ($60,000.00) shall remain in effect until the expiration of the
Lease Term. Landlord may make a demand upon the Letter of Credit if Tenant is in
default of the Lease, which default has not been cured within any applicable
cure period, as defined under Section 22 of the Lease. If the cure period
extends beyond the expiration date of the Letter of Credit or if Tenant fails to
renew the Letter of Credit or Tenant has not delivered to Landlord an extended
Letter of Credit or confirmation of the renewal of the Letter of Credit, as
applicable, within five (5) business days of the expiration date, then Landlord
may make demand upon the Letter of Credit and hold such sums as a security
deposit, to be used, applied, or retained for the payment of any unpaid rent or
for any other amount which Landlord may be required to expend by reason of the
default of Tenant, including any damages or deficiency in the reletting of the
Premises or any attorney's fees associated therewith, regardless of the whether
the accrual of such damages or deficiency occurs before or after an eviction.
Furthermore, if for any reason the Letter of Credit is dishonored or cannot
reasonably be drawn upon (including any dissolution or insolvency of the
issuer), then Tenant agrees within ten (10) days of receipt of written request
from the Landlord to deliver a new letter of credit meeting the standards set
forth herein and upon receipt thereof, the previous letter of credit shall be
delivered to Tenant. Tenant's failure or the bank's refusal to renew a Letter of
Credit or obtain or deliver a new letter of credit, if applicable, within the
time frames set forth herein, shall be deemed an automatic default with no
obligation of Landlord to give notice or opportunity to cure.

                                      J-1

<PAGE>   56
                                   EXHIBIT K

                        FORM OF DEMAND LETTER OF CREDIT

                          (Letterhead of Issuing Bank)

               , 2000

To:       MONY/BBP Office I, L.L.C.
          c/o Transwestern Investment Company
          150 North Wacker Drive, Suite 800
          Chicago, IL 60606
          Attention: Asset Manager

Re:       MONY/BDP Office I, L.L.C. Lease
          11551 East Arapahoe Road
          Englewood, CO 80112

Ladies/Gentlemen:

         We hereby establish our Irrevocable Demand Transferable Letter of
Credit and authorize you to draw on us at sight for the account of __________
_______________ up to the aggregate amount of _____________________ Dollars
($_________).

         Funds under this Letter of Credit are available to the holder hereof as
follows: Any or all of the sums hereunder may be drawn down at any time and from
time to time from and after the date hereof to and including the Expiration Date
(as hereinafter defined) by the holder hereof, or its authorized agent, when
accompanied by this Letter of Credit and a written draft signed by an officer,
_____________ ("Holder"). Drafts under this Letter of Credit must be marked:
"Pay to Holder $_____________, which represents a full draw on Letter of Credit
No. ___________" and must be presented at our office not later than the
Expiration Date at 5:00 p.m.

         This Letter of Credit is transferable in its entirety.

         This Letter of Credit shall expire on ____________ (the "Expiration
Date"); provided, however, this Letter of Credit shall be automatically extended
for successive twelve (12) month periods unless we shall notify each of you in
writing by United States certified mail at least thirty (30) days prior to the
Expiration Date (whether the date set forth above or the Expiration Date as so
extended) that this Letter of Credit will not be automatically extended on that
Expiration Date. In no event shall the Expiration Date, as automatically
extended, extend beyond                      .

         We hereby agree with the drawers, endorsers, and bona fide holders of
all drafts drawn on and in compliance with the terms of this credit that such
draft will be duly honored on the day of presentation to the drawee and that any
statutory, UCP, or other rights to delay honor of sight drafts, including such
rights under Article 5, Section 5-112 (1)(a) and (b) of the Uniform Commercial
Code, are hereby specifically waived. We further agree, upon the presentation of
such draft to the drawee, to honor such draft by delivering on the date of the
day of such presentation the amount of the draft, by official bank or certified
funds check, to MONY/BDP Office I, L.L.C. ("MONY/BDP") or, at MONY/BDP's sole
option, by wiring on the day of such presentation Federal Funds in the amount of
the draft into such account(s) as MONY/BDP may specifically direct, in writing.

         We hereby undertake that drafts drawn in compliance with the terms of
this Letter of Credit will be duly honored by us.

                                        Very truly yours,

                                        (Name of Issuing Bank)

                                        By:__________________________
                                        Authorized Signature

                                      K-1<PAGE>   1
                                                                   Exhibit 10.27

                                  OFFICE LEASE

                                    BETWEEN

                           PAC COURT ASSOCIATES, L.P.,
                  a California limited partnership - "Landlord"

                                       AND

                         INTEGRATED INFORMATION SYSTEMS,
                        a Delaware corporation - "Tenant"

                               Dated May 16, 2000
<PAGE>   2
                               TABLE OF CONTENTS

                                                                            Page

  I       BASIC LEASE PROVISIONS ..........................................   1

  II      DEFINITIONS .....................................................   2

          2.1. Certain Definitions ........................................   2
          2.2. Other Definitions ..........................................   4

  III     PREMISES AND TERM ...............................................   4

          3.1.    Lease of Premises .......................................   4
          3.2.    Term and Commencement ...................................   4
          3.3.    Early Entry .............................................   4
          3.4.    Delay in Possession .....................................   5
          3.5.    Tenant Delays ...........................................   5
          3.6.    Condition of Premises ...................................   5
          3.7.    No Representations ......................................   5

  IV      RENT AND ADJUSTMENTS ............................................   5

          4.1.    Monthly Rent ............................................   5
          4.2.    Additional Rent .........................................   5
          4.3.    Prorations ..............................................   5
          4.4.    Late Payment Charges ....................................   5
          4.5.    Security Deposit ........................................   6

  V       USE .............................................................   6

          5.1.    Tenant's Use ............................................   6
          5.2.    Compliance With Applicable Laws .........................   6
          5.3.    Restrictions ............................................   7
          5.4.    Landlord's Right of Entry ...............................   7

  VI      HAZARDOUS MATERIALS .............................................   7

          6.1.    Definition of Hazardous Materials .......................   7
          6.2.    Definition of Hazardous Materials Laws ..................   7
          6.3.    Use of Hazardous Materials ..............................   8
          6.4.    Disclosures .............................................   8
          6.5.    Inspection; Compliance ..................................   8
          6.6.    Indemnification .........................................   8
          6.7.    Assignment and Subletting ...............................   9

  VII     OPERATING EXPENSES;TAXES; UTILITIES .............................   9

          7.1.    Tenant to Bear Tenant's Share of Excess Project
                    Expenses ..............................................   9
          7.2.    Definition of Tenant's Share ............................   9
          7.3.    Definition of Operating Expenses ........................   9
          7.4.    Definition of Real Property Taxes .......................  10
          7.5.    Intentionally Deleted ...................................  10
          7.6.    Tax on Improvements .....................................  10
          7.7.    Utilities and Services ..................................  10
          7.8.    Security Measures .......................................  11

  VIII    ALTERATIONS .....................................................  11

          8.1.    Permitted Alterations ...................................  11
          8.2.    Trade Fixtures ..........................................  11
          8.3.    Mechanics' Liens ........................................  11
          8.4.    Alterations by Landlord .................................  11

  IX      MAINTENANCE AND REPAIR ..........................................  12

          9.1.    Landlord's Maintenance and Repair Obligations ...........  12
          9.2.    Tenant's Maintenance and Repair Obligations .............  12
          9.3.    Waiver ..................................................  12
          9.4.    Self-Help ...............................................  12

  X       COMMON AREA AND PARKING .........................................  12

          10.1.   Grant of Nonexclusive Common Area License and Right .....  12
          10.2.   Use of Common Area ......................................  12
          10.3.   Control of Common Area ..................................  13
          10.4.   Maintenance of Common Area ..............................  13
          10.5.   Revocation of License ...................................  13
          1O.6.   Landlord's Reserved Rights ..............................  13
          10.7.   Parking .................................................  13
          10.8.   Satellite Dish ..........................................  13

                                      (i)
<PAGE>   3
  X1      EXCULPATION, INDEMNITY AND INSURANCE ............................  14

          11.1.   Indemnification .........................................  14
          11.2.   Landlord's Property Insurance ...........................  14
          11.3.   Tenant's Insurance ......................................  14
          11.4.   Deductibles .............................................  14
          11.5.   Blanket Coverage ........................................  14
          11.6.   Increased Coverage ......................................  14
          11.7.   Sufficiency of Coverage .................................  15
          11.8.   Insurance Requirements ..................................  15
          11.9.   Intentionally Deleted ...................................  15
          11.10.  Landlord's Disclaimer ...................................  15
          11.11.  Waiver of Subrogation ...................................  15

  XII     DAMAGE OR DESTRUCTION ...........................................  15

          12.1.   Landlord's Obligation to Rebuild ........................  15
          12.2.   Landlord's Right to Terminate ...........................  15
          12.3.   Tenant's Right to Terminate .............................  15
          12.4.   Effect of Termination ...................................  16
          12.5.   Limited Obligation to Repair ............................  16
          12.6.   Abatement of Monthly Rent ...............................  16
          12.7.   Landlord's Determination ................................  16

  XIII    CONDEMNATION ....................................................  16

          13.1.   Total Taking - Termination ..............................  16
          13.2.   Partial Taking ..........................................  16
          13.3.   No Apportionment of Award ...............................  16
          13.4.   Temporary Taking ........................................  17
          13.5.   Sale Under Threat of Condemnation .......................  17

  XIV     ASSIGNMENT AND SUBLETTING .......................................  17

          14.1.   Prohibition .............................................  17
          14.2.   Landlord's Consent ......................................  17
          14.3.   Information .............................................  17
          14.4.   Standard for Consent ....................................  17
          14.5.   Bonus Value .............................................  18
          14.6.   Certain Transfers .......................................  18
          14.7.   Landlord's Fee and Expenses .............................  18
          14.8.   Transfer of the Premises by Landlord ....................  18

  XV      DEFAULTS AND REMEDIES ...........................................  18

          15.1.   Tenant's Default ........................................  18
          15.2.   Bankruptcy or Insolvency ................................  19
          15.3.   Landlord's Remedies .....................................  19
          15.4.   No Surrender ............................................  20
          15.5.   Interest on Late Payments ...............................  20
          15.6.   Attorneys' and Other Fees ...............................  20
          15.7.   Landlord's Default ......................................  21
          15.8.   Limitation of Landlord's Liability ......................  21
          15.9.   Mortgagee Protection ....................................  21
          15.10.  Landlord's Right to Perform .............................  21
          15.11.  Limitation of Actions Against Landlord ..................  21
          15.12.  Waiver of Jury Trial ....................................  21

XVI       SUBORDINATION; ESTOPPEL CERTIFICATE; FINANCIALS .................  21

          16.1.   Subordination, Attornment and Non-Disturbance ...........  21
          16.2.   Estoppel Certificate ....................................  22
          16.3.   Financial Information ...................................  22

  XVII    SIGNS AND GRAPHICS ..............................................  22

  XVIII   QUIET ENJOYMENT .................................................  22

  XIX     SURRENDER; HOLDING OVER .........................................  23

          19.1.   Surrender of the Premises ...............................  23
          19.2.   Holding Over ............................................  23

  XX      Intentionally Deleted ...........................................  23

  XXI     MISCELLANEOUS AND INTERPRETIVE PROVISIONS .......................  23

          21.1.   Broker ..................................................  23
          21.2.   Examination of Lease ....................................  23
          21.3.   No Recording ............................................  23

                                      (ii)
<PAGE>   4
          21.4.   Quitclaim ...............................................  23
          21.5.   Modifications for Mortgagees ............................  23
          21.6.   Notice ..................................................  23
          21.7.   Captions ................................................  24
          21.8.   Executed Copy ...........................................  24
          21.9.   Time ....................................................  24
          21.10.  Severability ............................................  24
          21.11.  Survival ................................................  24
          21.12   Choice of Law ...........................................  24
          21.13.  Gender; Singular, Plural ................................  24
          21.14.  Non-Agency ..............................................  24
          21.15.  Successors ..............................................  24
          21.16.  Waiver; Remedies Cumulative .............................  24
          21.17.  Unavoidable Delay .......................................  24
          21.18.  Entire Agreement ........................................  24
          21.19.  Authority ...............................................  24
          21.20.  Guaranty ................................................  25
          21.21.  Exhibits; References ....................................  25
          21.22.  Basic Lease Provisions ..................................  25
          21.23.  No Merger ...............................................  25
          21.24.  Joint and Several Obligations ...........................  25
          21.25.  No Light or Air Easement ................................  25
          21.26.  Lease Subject to Matters of Record ......................  25
          21.27.  Hazardous Materials Disclosure ..........................  25
          21.28.  Tenant's and Guarantor's Financial Condition .............  25

May 2, 2000

                                     (iii)

<PAGE>   5
                                  OFFICE LEASE

         This Office Lease dated May 16, 2000 (this "Lease") is entered into by
and between PAC COURT ASSOCIATES, L.P., a California limited partnership
("Landlord"), and INTEGRATED INFORMATION SYSTEMS, INC., a Delaware corporation
("Tenant").

                                    ARTICLE I
                             BASIC LEASE PROVISIONS

         Each reference in this Lease to the "Basic Lease Provisions" shall mean
and refer to the following terms, the application of which shall be governed by
the provisions in the remaining Articles of this Lease:

1.       Address of Landlord:                c/o Banyan Pacific, LLC
                                             114 Pacifica, Suite 230
                                             Irvine, California 92618-3318

2.       Premises Address:                   114 Pacifica, Suite 300
                                             Irvine, California 92618-3318

3.       Address of Tenant:

         (a)      Notices:                   1560 W. Fountainhead Parkway
                                             Tempe, Arizona 85282
                                             Attention: Corporate Counsel

                  with a copy to:            114 Pacifica, Suite 300
                                             Irvine, California 92618-3318

         (b)      Billing:                   1560 W. Fountainhead Parkway
                                             Tempe, Arizona 85282
                                             Attention: Accounts Payable

4.       Tenant's Trade Name:      Integrated Information Systems

<TABLE>
<S>                                <C>                  <C>
5.       Tenant's Contact:         Susan Howells        Telephone:  (   ) _________________
</TABLE>

<TABLE>
<C>                                                                 <C>
6.       Premises Rentable Square Feet:  11,109 Square Feet         Tenant's Share: 10.36%
         Building Rentable Square Feet:  107,199 Square Feet
</TABLE>

7.       Anticipated Commencement Date: August 1, 2000

8.       Term: Six (6) years

<TABLE>
<S>                                          <C>                                       <C>
9.       Monthly Rent:                       Lease Month/Year:                         Monthly Rent Amount:

                                                   1-12                                     $28,327.95
                                                   13-24                                    $29,438.85
                                                   25-36                                    $30,549.75
                                                   37-48                                    $31,660.65
                                                   49-60                                    $32,771.55
                                                   61-72                                    $33,882.45
</TABLE>

10.      Security Deposit:    $31,160.75

11.      Tenant Improvement Allowance  $269,109.00

12.      Broker(s):       Landlord:  CB Richard Ellis
                          Tenant:    Lee & Associates

13.      Landlord's Space Planner:   H. Hendy Associates

14.      Guarantor:       None.

15.      Project Expense Base: Actual operating expenses for calendar year 2000,
         projected to 95% occupancy.

<TABLE>
<S>                <C>    <C>                                      <C>   <C>
Exhibits:          A      Graphic Depiction of Premises            D     Commencement Date Memorandum
                   B      Project Site Plan                        E     Rules and Regulations
                   C      Work Letter
</TABLE>

Riders:            Lease Rider No. 1 - Letter of Credit
                   Lease Rider No. 2 - Right to Extend Term
                   Lease Rider No. 3 - Right of First Refusal
                   Lease Rider No. 4 - Signage Rights
                   Lease Rider No. 5 - Lease Modifications

May 2, 2000
Page 1 of 26
<PAGE>   6
                                   ARTICLE II
                                   DEFINITIONS

         2.1. CERTAIN DEFINITIONS. The capitalized terms set forth below, unless
the context clearly requires otherwise, shall have the following meanings in
this Lease:

         "ADDITIONAL RENT" means any and all sums (whether or not specifically
called "Additional Rent" in this Lease) other than Monthly Rent which Tenant is
or becomes obligated to pay to Landlord under this Lease. See also "Rent."

         "ALTERATIONS" means any alterations, decorations, modifications,
additions or improvements made in, on, about, under or contiguous to the
Building or the Premises after the Commencement Date, including, but not limited
to, lighting, HVAC and electrical fixtures, pipes and conduits, fiber-optics and
other telecommunications cabling, transfer, storage and disposal facilities,
partitions, drapery, wall coverings, shelves, cabinetwork, carpeting and other
floor coverings, ceiling tiles, fixtures and carpentry installations.

         "APPLICABLE LAWS" means the laws, rules, regulations, ordinances,
restrictions, and practices described in Section 5.2.

         "APPLICABLE RATE" means the greater of ten percent (10%) per annum or
five percent (5%) in excess of the discount rate of the Federal Reserve Bank of
San Francisco in effect on the twenty-fifth (25th) day of the calendar month
immediately prior to the event giving rise to the Applicable Rate imposition;
provided, however, the Applicable Rate shall in no event exceed the maximum
interest rate permitted to be charged by applicable law.

         "BOMA STANDARD" means the Standard Method for Measuring Floor Area in
Office Buildings, ANSI Z65.1-1996.

         "BROKER" means the person or entity identified in Item 12 of the Basic
Lease Provisions.

         "BUILDING" means that certain building known as Pacifica Court and
within which the Premises are located.

         "CASUALTY" is defined in Section 12.1.

         "CITY" means the City of Irvine, California.

         "CLAIMS" is defined in Section 11.3.1.

         "COMMENCEMENT DATE" means the commencement date of the Term, described
in Section 3.2.

         "COMMON AREA" means all interior and exterior areas and facilities
within the Project exclusive of the Premises and other portions of the Project
leased (or to be leased) exclusively to other tenants. The Common Area includes,
but is not limited to lobbies, hallways, restrooms, parking areas, access and
perimeter roads, sidewalks, landscaped areas and similar areas and facilities.
Tenant's use of the Common Area, and its rights and obligations with respect
thereto, are more particularly described in Article X.

         "COUNTY" means the County of Orange, California.

         "EVENT OF DEFAULT" means the Tenant defaults described in Section 15.1.

         "GUARANTOR" means the person(s) or entity identified in Item 14 of the
Basic Lease Provisions.

         "HVAC" means the heating, ventilating and air conditioning system
serving the Building.

         "HAZARDOUS MATERIALS" is defined in Section 6.1.

         "HAZARDOUS MATERIALS LAWS" is defined in Section 6.2.

         "LANDLORD'S AGENTS" means Landlord's authorized agents,
representatives, property managers (whether as agents or independent
contractors), consultants, contractors, partners, subsidiaries, affiliates,
directors, officers and employees.

         "LANDLORD PARTIES" is defined in Section 11.1.

         "LANDLORD'S SPACE PLANNER" means the interior design consultant, space
planner or architect or architectural firm from time to time designated by
Landlord to perform the function of Landlord's Space Planner set forth in this
Lease. Landlord's Space Planner initially shall be the firm designated in Item
13 of the Basic Lease Provisions.

         "LEASE" means this instrument together with all exhibits, amendments,
addenda and riders attached hereto and made a part hereof.

         "MONTHLY RENT" means the monthly rental which Tenant is to pay to
Landlord pursuant to Section 4.1, as the same may be adjusted from time to time
as set forth in this Lease. See also "Rent."

May 2, 2000
Page 2 of 26

<PAGE>   7
         "MORTGAGE" means any mortgage, deed of trust, or similar lien on or
covering the Project or any part thereof.

         "MORTGAGEE" means any mortgagee of a mortgage, beneficiary of a deed of
trust or lender having a lien on or covering the Project or any part thereof.

         "NOTICE" means each and every notice, communication, request, demand,
reply or advice, or duplicate thereof, in this Lease provided or permitted to be
given, made or accepted by either party to any other party, which shall be in
writing and given in accordance with the provisions of Section 21.6.

         "OPERATING EXPENSES" is defined in Section 7.3.

         "PLANS" means the final working drawings for the construction of the
Tenant Improvements to be prepared and approved as set forth in the Work Letter.

         "PREMISES" means the premises depicted on the floor plan attached
hereto as Exhibit "A". The Premises are located within and constitute a
portion of the Building at the address set forth in Item 2 of the Basic Lease
Provisions.

         "PROJECT" means that certain real property, and all improvements
thereon, including the Building and other buildings, if any, located within the
boundaries of such property, shown on the Project Site Plan.

         "PROJECT EXPENSE BASE" means the allowance for Project Expenses that
Landlord will credit to Tenant's Share of Project Expenses under Article VII,
which allowance amount is set forth under Item 15 of the Basic Lease Provisions.

         "PROJECT EXPENSES" means, collectively, Operating Expenses and Real
Property Taxes.

         "PROJECT SITE PLAN" means the plan attached hereto as EXHIBIT "B".

         "REAL PROPERTY TAXES" is defined in Section 7.4.

         "RENT" means Monthly Rent and Additional Rent, collectively.

         "PREMISES RENTABLE SQUARE FEET" means (a) with respect to the Premises,
the usable area of the Premises determined in accordance with the Method for
Measuring Floor Area in Office Buildings, ANSI Z65.1-1996, plus a pro-rata
portion of the main lobby area on the ground floor and all elevator machine
rooms, electrical and telephone equipment rooms and mail delivery facilities,
janitor rooms and other common areas used by all tenants of the Building, if
any, plus (i) for single tenancy floors, all the area covered by the elevator
lobbies, corridors, special stairways, restrooms, mechanical rooms, electrical
rooms, janitor rooms and telephone closets on such floors, or (ii) for multiple
tenancy floors, a pro-rata portion of all of the area covered by the elevator
lobbies, corridors, special stairways, restrooms, mechanical rooms, electrical
rooms, janitor rooms, telephone closets and any other common areas on such
floor, and (b) with respect to the Building, the total rentable area for all
floors in the Building computed in accordance with the provisions of clause (a)
above. In calculating the "Premises Rentable Square Feet" of the Premises or the
Building, the area contained within the exterior walls of the Building stairs,
fire towers, vertical ducts, elevator shafts, flues, vents, stacks and major
pipe shafts will be excluded. In connection with the initial improvement of the
Premises with Tenant Improvements, if Landlord believes that there is a
discrepancy between the actual Premises Rentable Square Feet and the number set
forth in the Basic Lease Provisions of this Lease, Landlord may require that
Landlord's Space Planner physically measure the Premises prior to occupancy of
the Premises by Tenant in order to verify the Premises Rentable Square Feet,
which determination by Landlord's Space Planner shall be conclusive. If
Landlord's Space Planner discovers a discrepancy, the Premises Rentable Square
Feet shall be adjusted accordingly; provided, however, that any adjustment to
the Premises Rentable Square Feet shall not result in an increase or decrease
greater than two (2) percent of the Premises Rentable Square Feet stated in the
Basic Lease Provisions of this Lease. Upon an adjustment, if any, to the
Premises Rentable Square Feet, there shall also be an appropriate adjustment to
Tenant's Share, the Monthly Rent and the Security Deposit, which adjustments
shall be reflected in the Commencement Date Memorandum or other writing signed
by Landlord and Tenant.

         "RESTRICTIONS" means, collectively, the covenants, conditions or
restrictions and all other matters of record affecting the Premises, as the same
may be amended from time to time.

         "RULES AND REGULATIONS" means the rules and regulations attached hereto
as EXHIBIT "E" and any modifications thereto promulgated by Landlord or
Landlord's Agents from time to time.

         "SECURITY DEPOSIT" means the amount set forth in Item 10 of the Basic
Lease Provisions, which shall be paid to Landlord by Tenant pursuant to Section
4.5.

         "SUBSTANTIAL COMPLETION" AND "SUBSTANTIALLY COMPLETED" means the Tenant
Improvements, or repair of the Premises following a Casualty, have been fully
completed except for minor details of construction, mechanical adjustments or
decoration which do not materially interfere with Tenant's use and enjoyment of
the Premises (items normally referred to as "punch list" items).

May 2, 2000
Page 3 of 26

<PAGE>   8
         "TENANT DELAYS" means (i) any and all delays in the construction of the
Tenant Improvements due to the fault of the Tenant, as defined and specified in
the Work Letter, and/or (ii) delays due to Tenant's failure to deliver to
Landlord prior to the Anticipated Commencement Date, executed copies of policies
of insurance or certificates thereof as required under Article XI, or other
deposits or information required under this Lease.

         "TENANT IMPROVEMENTS" means those certain improvements, if any, to be
constructed on the Premises as provided in Section 3.6 and in the Work Letter.

         "TENANT'S AGENTS" means Tenant's agents, representatives, consultants,
contractors, affiliates, subsidiaries, officers, directors, employees,
subtenants, guests and invitees.

         "TENANT PARTIES" is defined in Section 11.1.

         "TENANT'S PERSONAL PROPERTY" means Tenant's removable trade fixtures,
furniture, equipment and other personal property located in or on the Premises.

         "TENANT'S SHARE" is defined in Section 7.2.

         "TERM" means the term of this Lease, as provided in Section 3.2.

         "UNAVOIDABLE DELAY" means any delays which are beyond a party's
reasonable control, including, but not limited to, delays due to inclement
weather, strikes, acts of God, inability to obtain labor or materials, inability
to secure governmental approvals or permits, governmental restrictions, civil
commotion, fire, earthquake, explosion, flood, hurricane, the elements, or the
public enemy, action or interference of governmental authorities or agents, war,
invasion, insurrection, rebellion, riots, lockouts, "Y2K"-related problems or
any other cause whether similar or dissimilar to the foregoing which is beyond a
party's reasonable control; provided however, that in no event shall any of the
foregoing ever apply with respect to the payment of any monetary obligation.

         "USABLE SQUARE FEET" of the Premises as used in EXHIBIT "C" means the
usable area of the Premises as determined in accordance with the BOMA Standard.

         "WORK LETTER" means the work letter between Landlord and Tenant
regarding the construction of the Tenant Improvements, if any, in the form as
attached hereto as EXHIBIT "C".

         2.2. OTHER DEFINITIONS. Terms defined elsewhere in this Lease, unless
the context clearly requires otherwise, shall have the meaning as there given.

                                   ARTICLE III
                                PREMISES AND TERM

         3.1. LEASE OF PREMISES. Subject to and upon the terms and conditions
set forth herein, Landlord hereby leases the Premises to Tenant, and Tenant
hereby leases the Premises from Landlord.

         3.2. TERM AND COMMENCEMENT. Unless sooner terminated as provided
herein, the Term of this Lease shall be for that period of years and months set
forth in Item 8 of the Basic Lease Provisions, as the same may be extended in
accordance with any option or options to extend the Term granted herein, and
shall commence (the "Commencement Date"), subject to Section 3.5 below, on the
earlier of (i) the date upon which the City or County has approved the Tenant
Improvements in accordance with its building code, as evidenced by its written
approval thereof in accordance with the building permits issued for the Tenant
Improvements, (ii) the date Landlord's Space Planner has certified in writing
that the Tenant Improvements are substantially completed in accordance with the
Plans, or (iii) the date Tenant commences occupancy of the Premises. When the
actual Commencement Date has occurred, Landlord and Tenant shall execute a
Commencement Date Memorandum in the form shown in EXHIBIT "D". Landlord and
Tenant anticipate that the Term will commence on the "Anticipated Commencement
Date" set forth in Item 7 of the Basic Lease Provisions, but the Anticipated
Commencement Date shall in no event affect the actual Commencement Date, which
shall be determined as set forth in this Section 3.2.

         3.3. EARLY ENTRY. Tenant and its authorized agents, contractors,
subcontractors and employees shall be granted a license by Landlord to enter
upon the Premises, at Tenant's sole risk and expense, during ordinary business
hours prior to the Commencement Date, for the sole purpose of installing
Tenant's trade fixtures and equipment in the Premises; provided, however, (i)
Tenant shall first make a request to Landlord for access to the Premises, which
request shall be granted if Landlord reasonably determines that Tenant's entry
shall not delay, hinder or complicate the completion of the Tenant Improvements,
(ii) the provisions of this Lease, other than with respect to the payment of
Monthly Rent or Additional Rent, subject to phrase (iv) below, shall apply
during such early entry, including, but not limited to, the provisions of
Article XI relating to Tenant's exculpation and indemnification of Landlord,
(iii) prior to any such entry, Tenant shall pay for and provide evidence of the
insurance to be provided by Tenant pursuant to the provisions of Article XI,
(iv) Tenant shall pay all utility, service and maintenance charges for the
Premises attributable to Tenant's early entry and use of the Premises as
reasonably determined by Landlord, (v) Tenant shall not unreasonably interfere,
delay or hinder Landlord, its agents, contractors or subcontractors in the
construction of the Tenant Improvements in accordance with the provisions of
this Lease, (vi) Tenant shall not use the Premises for the storage of inventory
or otherwise commence the operation of business during the period of such early
entry, and (vii) Tenant shall at all times comply with Landlord's rules and
regulations regarding tenant move-in procedures. Upon Tenant's breach of any of
the foregoing conditions, Landlord may, in addition to exercising any of its
other rights and remedies set forth herein, revoke such license

May 2, 2000
Page 4 of 26

<PAGE>   9
upon written notice to Tenant. Early entry by Tenant in accordance with this
Section 3.3 shall not constitute occupancy of the Premises for purposes of
establishing the Commencement Date.

         3.4. DELAY IN POSSESSION. If for any reason Landlord cannot deliver
possession of the Premises to Tenant with the Tenant Improvements substantially
completed on or before the Anticipated Commencement Date, Landlord shall not be
subject to any liability therefor, and such failure shall not affect the
validity of this Lease or the obligations of Tenant hereunder, but in such case,
Tenant shall not be obligated to pay Monthly Rent or Additional Rent other than
as provided in Section 3.3 and Section 3.5 until the Commencement Date has
occurred. If the Commencement Date has not occurred within ninety (90) days
following the Anticipated Commencement Date plus periods attributable to Tenant
Delays or Unavoidable Delay, Tenant may, at its option, by Notice to Landlord
within ten (10) days thereafter, terminate this Lease, in which event the
parties shall be discharged from all further obligations hereunder; provided,
however, if Tenant fails to give such notice to Landlord within such ten-day,
period, Tenant shall no longer have the right to terminate this Lease under this
Section 3.4. Tenant understands that, notwithstanding anything to the contrary
contained herein, Landlord shall have no obligation to deliver possession of the
Premises to Tenant for so long as Tenant fails to deliver to Landlord executed
copies of policies of insurance or certificates thereof as required under
Article XI.

         3.5. TENANT DELAYS. The Commencement Date shall not be delayed or
postponed due to Tenant Delays, and the Term, Tenant's obligations to pay Rent
and all of Tenant's other obligations under this Lease shall commence upon the
date which would have been the Commencement Date but for Tenant Delays.

         3.6. CONDITION OF PREMISES. Landlord's sole construction obligations,
if any, regarding Tenant Improvements for the Premises and the obligations of
Tenant with respect to the Tenant Improvements, are set forth in the Work Letter
attached as EXHIBIT "C". It is acknowledged and agreed that all Tenant
Improvements under this Lease are and shall be the property of Landlord from and
after their installation. The taking of possession or use of the Premises by
Tenant for any purpose other than as provided in Section 3.3 shall conclusively
establish that Tenant has inspected the Premises and accepts them as being in
good and sanitary order, condition and repair and that the Tenant Improvements
have been constructed in accordance with the Plans; provided, however, Tenant
shall have a period of thirty (30) days after taking possession of the Premises
in which to notify Landlord in writing of any construction deficiencies or
defects and any uncompleted punch list items (the punch list shall be limited to
items required to be accomplished by Landlord under the Work Letter) and, except
as hereafter provided, Landlord will repair, replace or complete at its expense
all items referenced in such notice within thirty (30) days after receipt of
such notice, subject to Unavoidable Delay, or as soon thereafter as Landlord,
acting in good faith, can repair, replace or complete the same. If Landlord
reasonably contends that a particular item in such notice is not justified, the
parties will refer the issue to Landlord's Space Planner for resolution.
Landlord's Space Planner's determination shall be final and binding upon the
parties. Nothing in this Section 3.6 shall limit or expand Landlord's
maintenance and repair obligations set forth in Article IX. Article XVIII
notwithstanding, Tenant's acceptance of the Premises is with the understanding
that, as other tenants lease space in the Building from time to time, certain
noise, distractions and other inconveniences with respect to the Project
(including the Building and the parking area) may result from the construction
or renovation of tenant improvements or the moving of such other tenants into
their premises.

         3.7. NO REPRESENTATIONS. Tenant acknowledges that neither Landlord nor
any of Landlord's Agents has made any representations or warranties as to the
suitability or fitness of the Premises for the conduct of Tenant's business or
for any other purpose other than as general and administrative offices uses,
including, but not limited to, any representations or warranties regarding
zoning or other land use matters, or for any other purpose, and that neither
Landlord nor any of Landlord's Agents has agreed to undertake any alterations or
additions or construct any Tenant Improvements to the Premises except as
expressly provided in this Lease. [SEE RIDER]

                                   ARTICLE IV
                              RENT AND ADJUSTMENTS

         4.1. MONTHLY RENT. From and after the Commencement Date, Tenant shall
pay to the Landlord, for each calendar month of the Term, the Monthly Rent set
forth in Item 9 of the Basic Lease Provisions and in any Riders attached hereto.
Monthly Rent shall be due and payable to Landlord in lawful money of the United
States, in advance, on the first (1st) day of each calendar month of the Term,
without abatement, deduction, claim or offset, and without prior notice, invoice
or demand, at Landlord's address set forth in Item 1 of the Basic Lease
Provisions or at such place as Landlord may from time to time designate.
Tenant's payment of Monthly Rent for the first (1st) month of the Term shall be
delivered to Landlord concurrently with Tenant's execution of this Lease.

         4.2. ADDITIONAL RENT. All Additional Rent shall be due and payable to
Landlord in lawful money of the United States, at Landlord's address set forth
in Item 1 of the Basic Lease Provisions or at such other place as Landlord may
from time to time designate, without abatement, withholding, deduction, claim or
offset, within ten (10) days of receipt of Landlord's invoice or statement for
same, or, if this Lease provides another time for the payment of certain items
of Additional Rent, then at such other time.

         4.3. PRORATIONS. If the Commencement Date is not the first (1st) day
of a month, or if the expiration of the Term of this Lease is not the last day
of a month, a prorated installment of Monthly Rent based on a thirty (30) day
month shall be paid for the fractional month during which the Term commences or
terminates.

         4.4. LATE PAYMENT CHARGES. Tenant acknowledges that late payment by
Tenant to Landlord of Rent under this Lease will cause Landlord to incur costs
not contemplated by this Lease, the exact amount of which is extremely difficult
or impracticable to determine. Such costs include, but are not limited to,
processing and accounting charges, late charges that may be imposed on Landlord
by the terms of any Mortgage, and late charges and penalties that may be imposed
due to late payment of Real Property Taxes or any item of Operating Expenses.

May 2, 2000
Page 5 of 26
<PAGE>   10
Therefore, if any installment of Monthly Rent or any payment of Additional Rent
due from Tenant is not received by Landlord in good funds by the fifth (5th)
calendar day from the applicable due date, Tenant shall pay to Landlord an
additional sum equal to six percent (6%) of the amount overdue as a late charge
for every month or portion thereof that such amount remains unpaid. The parties
acknowledge that this late charge represents a fair and reasonable estimate of
the costs that Landlord will incur by reason of the late payment by Tenant.
Acceptance of any late Rent and late charge therefor shall not prevent Landlord
from exercising any of the other rights and remedies available to Landlord for
any other Event of Default under this Lease. Notwithstanding the foregoing (i)
should any payment of Rent by personal check be rejected for insufficient funds,
Landlord shall have the right, upon notice to Tenant, to require that all future
payments by Tenant under this Lease be by cashier's check acceptable to
Landlord, and (ii) upon the third (3rd) occurrence during the Term of Tenant's
failure to timely pay Rent when due, Landlord may, upon notice to Tenant,
require that Monthly Rent for the balance of the Term be made in quarterly
installments, in advance, in certified funds, in an amount equal to the sum of
the Monthly Rent amounts payable during such three (3) month period.

         4.5. SECURITY DEPOSIT. Tenant has deposited with Landlord the sum set
forth in Item 10 of the Basic Lease Provisions as a Security Deposit for the
full and faithful performance of every provision of this Lease to be performed
by Tenant. Landlord may apply, in its sole discretion at any time during the
Term of this Lease, all or any part of the Security Deposit to the payment of
all prepaid expenses by Landlord for which Tenant would be required to reimburse
Landlord under this Lease, including without limitation for Tenant Improvements
and Broker commissions. Such application of the Security Deposit is not and
shall never be dependent upon an Event of Default. Upon an Event of Default,
and whether or not Landlord is informed of or has knowledge of the Event of
Default, the Security Deposit (if not already applied as hereinabove provided)
shall be deemed to be automatically applied, without waiver of any rights
Landlord may have under this Lease or at law or in equity as a result of an
Event of Default, to the payment of any Rent not paid when due, the repair of
damage to the Premises or the payment of any other amount which Landlord may
spend or become obligated to spend by reason of an Event of Default, or to
compensate Landlord for any other loss or damage which Landlord may suffer by
reason of an Event of Default, to the full extent permitted by law. If any
portion of the Security Deposit is so applied, Tenant shall, within fifteen (15)
business days after written demand therefor, deposit cash with Landlord in an
amount sufficient to restore the Security Deposit to its original amount.
Landlord shall not be required to keep the Security Deposit separate from its
general funds. The unused portion of the Security Deposit, if any, shall be
returned to Tenant within thirty (30) days of the expiration of this Lease or
any termination of this Lease not resulting from an Event of Default, so long as
Tenant has (i) vacated the Premises in the manner required by this Lease
(including without limitation the proper and timely removal of Tenant's
telecommunications cabling and facilities from the Premises and Building, if
required by Landlord), (ii) paid all sums required to be paid under this Lease,
(iii) returned all security/access cards and keys to the Premises and Building;
provided, however, Landlord may retain the Security Deposit or a portion thereof
until such time as the amount of any Additional Rent due from Tenant has been
determined and paid in full. Tenant hereby waives the provisions of Section
1950.7(c) of the California Civil Code and any present or future laws otherwise
governing the return of the Security Deposit, to Tenant to the extent of
reasonably anticipated Additional Rent retained by Landlord pursuant to the
previous sentence.

                                    ARTICLE V
                                       USE

         5.1. TENANT'S USE. Tenant shall use the Premises solely for general and
administrative office uses and for no other purpose. Tenant shall not employ at
the Premises more employees than normally associated with general office uses,
so as not to over-burden common area facilities (including without limitation,
the parking areas) or cause excessive wear-and-tear on the Premises and
Building. Tenant's use of the Premises shall be subject to all of the terms and
conditions of this Lease, including, but not limited to, all the provisions of
this Article V. Tenant, at Tenant's sole cost and expense, shall procure,
maintain and make available for Landlord's inspection throughout the Term, all
governmental approvals, licenses and permits required for the proper and lawful
conduct of Tenant's permitted use of the Premises. At Landlord's request, Tenant
shall deliver copies of all such approvals, licenses and permits to Landlord.

         5.2. COMPLIANCE WITH APPLICABLE LAWS. Throughout the Term, Tenant, at
Tenant's sole cost and expense, shall comply with, and shall not use the
Premises, Building or Common Area, or suffer or permit anything to be done in
or about the same which will in any way conflict with, (i) any and all present
and future laws, statutes, zoning restrictions, ordinances, orders, regulations,
directions, rules and requirements of all governmental or private authorities
having jurisdiction over all or any part of the Premises (including, but not
limited to, state, municipal, county and federal governments and their
departments, bureaus, boards and officials) pertaining to the use or occupancy
of, or applicable to, the Premises or privileges appurtenant to or in
connection with the enjoyment of the Premises, (ii) Hazardous Materials Laws (as
defined in Section 6.2), (iii) any and all applicable federal, state and local
laws, regulations or ordinances pertaining to air and water quality, waste
disposal, air emissions and other environmental or health and safety matters,
zoning, land use and utility availability, which impose any duty upon Landlord
or Tenant directly or with respect to the use or occupation of the Project or
any portion thereof, (iv) the requirements of the Board of Fire Underwriters or
other similar body now or hereafter constituted relating to or affecting the
condition, use or occupancy of the Project or any portion thereof, (v) any
covenants, conditions, easements or restrictions, including but not limited to
the Restrictions, now or hereafter affecting or encumbering the Project or any
portion thereof, regardless of when they become effective, (vi) the Rules and
Regulations, and (vii) good business practices (collectively, (i) through (vi)
above are hereinafter referred to as "Applicable Laws"). Tenant shall not commit
any waste of the Premises, Building or Project, or any public or private
nuisance or any other act or thing which might or would disturb the quiet
enjoyment of any other tenant of Landlord. Tenant shall not place or permit to
be placed any loads upon the floors, walls or ceilings in excess of the maximum
designed load specified by Landlord or which might damage the Premises or the
Building, or place or permit to be placed any harmful liquids in the drainage
systems, and Tenant shall not dump or store, or permit to be dumped or stored,
any

May 2, 2000
Page 6 of 26
<PAGE>   11
inventory, waste materials, refuse or other materials or allow any such
materials to remain outside the Building proper, except in designated enclosed
trash areas. Tenant shall not conduct or permit any auctions, sheriff's sales or
other like activities at the Project or any portion thereof.

         5.3. RESTRICTIONS. Tenant agrees that this Lease is subject and
subordinate to the Restrictions, as the same may now or hereafter exist, and
that it will execute and deliver to Landlord within fifteen (15) days of
Landlord's request therefor, any further documentation or instruments which
Landlord deems necessary or desirable to evidence or effect such subordination.
Without limiting the provisions of Section 5.2, Tenant shall throughout the Term
timely comply with all of the terms, provisions, conditions and restrictions of
the Restrictions which pertain to, restrict or affect the Premises or Tenant's
use thereof, or Tenant's use of any other area of the Project permitted
hereunder, including the payment by Tenant of any periodic or special dues or
assessments charged against the Premises or Tenant which may be allocated to the
Premises or Tenant in accordance with the provisions of the Restrictions. Tenant
shall hold Landlord, Landlord's Agents and the Premises harmless and shall
indemnify, protect and defend Landlord and Landlord's Agents from and against
any loss, expense, damage, attorneys' fees and costs or liability arising out of
or in connection with the failure of Tenant to so perform or comply with the
Restrictions. Tenant agrees that it will subordinate this Lease to any other
covenants, conditions and restrictions and any reciprocal easement agreements or
any similar agreements which Landlord may hereafter record against the Premises
and to any amendment or modification to any of the existing Restrictions,
provided that such subordination does not unreasonably interfere with Tenant's
use and employment of the Premises.

         5.4. LANDLORD'S RIGHT OF ENTRY. Landlord and Landlord's Agents shall
have the right to enter the Premises at all reasonable times upon reasonable
notice to Tenant, except for emergencies in which case no notice shall be
required, to inspect the Premises, to take samples and conduct environmental
investigations, to post notices of non-responsibility and similar notices and
signs indicating the availability of the Premises for sale and/or lease, to show
the Premises to interested parties such as prospective tenants, consultants,
lenders and purchasers, to make necessary Alterations or maintenance and
repairs, to perform Tenant's obligations as permitted herein when Tenant has
failed to do so and, at any reasonable time after one hundred eighty (180) days
prior to the expiration of the Term, to place upon the Premises reasonable signs
indicating the availability of the Premises for lease and to show the Premises
to prospective tenants, all without being deemed to have caused an eviction of
Tenant and without any liability to Tenant or abatement of Rent. The above
rights are subject to reasonable security regulations of Tenant, and in
exercising its rights set forth herein, Landlord shall endeavor to cause the
least possible interference with Tenant's business. Landlord shall at all times
have the right to retain a key which unlocks all of the doors in the Premises,
and any security codes and/or passwords for any security system installed by
Tenant, but excluding Tenant's vaults and safes, and Landlord and Landlord's
Agents shall have the right to use any and all means which Landlord may deem
proper to open the doors in an emergency to obtain entry to the Premises, and
any entry to the Premises so obtained by Landlord or Landlord's Agents shall not
under any circumstances be deemed to be a forcible or unlawful entry into, or a
detainer of, the Premises, or an eviction of Tenant from the Premises.

                                   ARTICLE VI
                               HAZARDOUS MATERIALS

         6.1. DEFINITION OF HAZARDOUS MATERIALS. For purposes of this Lease, the
term "Hazardous Materials" includes (i) any "hazardous materials" as defined in
Section 25501(o) of the California Health and Safety Code unless Tenant
establishes, to the satisfaction of Landlord, that because of the quantity,
concentration, or physical or chemical characteristics, such substance or matter
does not pose a present or potential hazard to human health and safety or to the
environment, (ii) any other substance or matter which results in liability to
any person or entity from exposure to such substance or matter under any
statutory or common law theory, and (iii) any substance or matter which is in
excess of relevant and appropriate levels set forth in any applicable federal,
state or local law or regulation pertaining to any hazardous or toxic substance,
material or waste, or for which any applicable federal, state or local agency
orders or otherwise requires removal, treatment or remediation.

         6.2. DEFINITION OF HAZARDOUS MATERIALS LAWS. The term "Hazardous
Materials Law(s)" shall mean any federal, state or local laws, ordinances,
codes, statutes, regulations, administrative rules, policies and orders, and
other authority, existing now or in the future, which classify, regulate, list
or define hazardous substances, materials, wastes, contaminants, pollutants
and/or the Hazardous Materials, including without limitation, the following
statutes and regulations, and any other legal authority, rules, regulations, or
policies relating to or implementing such statues and regulations:

                  (a) FEDERAL. Comprehensive Environmental Response,
         Compensation and Liability Act of 1980 ("CERCLA" or "Superfund"), as
         amended by the Superfund Amendments and Reauthorization Act of 1986
         ("SARA"), 42 U.S.C. Section 9601 et seq.; Resource conservation and
         Recovery Act of 1976 ("RCRA"), 42 U.S.C. Section 6901 et seq.; Clean
         Water Act ("CWA"), 33 U.S.C. Section 1251 et seq.; Clean Air Act
         ("CAA"), 42 U.S.C. Section 78401 et seq.; Toxic Substances Control Act
         ("TCSA"), 15 U.S.C. Section 2601 et seq.; The Refuse Act of 1899, 33
         U.S.C. Section 407; Occupational Safety and Health Act ("OSHA"), 29
         U.S.C. Section 651 et seq.; Hazardous Materials Transportation Act, 49
         U.S.C. Section 1801 et seq.; United States Department of Transportation
         Table (49 CFR 172.101 and amendments thereto) and the Environmental
         Protection Agency Table (40 CFR Part 302 and amendments thereto);

                  (b) CALIFORNIA. Carpenter-Presley-Tanner Hazardous Substance
         Account Act ("California Superfund"), Cal. Health & Safety Code
         Section 25300 et seq.; California Hazardous Waste Control Act, Cal.
         Health & Safety Code Sections 25100 et seq.; Porter-Cologne Water
         Quality Control Act ("Porter-Cologne Act"), Cal. Water Code
         Section 13000 et seq.; Hazardous Waste Disposal Land Use Law, Cal.
         Heath & Safety Code Section 25220 et seq.; Safe Drinking Water and
         Toxic Enforcement Act of 1986 ("Proposition 65"), Cal. Health & Safety
         Code Section 25280 et seq.; California Hazardous Substance Act, Cal.
         Health & Safety Code

May 2, 2000
Page 7 of 26
<PAGE>   12
         Section 28740 et seq.; Air Resources Law, Cal. Health & Safety Code
         Section 39000 et seq.; Hazardous Materials Release Response Plans and
         Inventory, Cal. Health & Safety Code Sections 25500-25541 et seq.;
         Toxic Pits Cleanup Act of 1984 ("TCPA"), Cal. Health & Safety Code
         Sections 25208-25208.17 et seq.;

                  (c) OTHER LAWS AND REGULATIONS. All other rules and
         regulations promulgated pursuant to said foregoing laws or any
         amendments or replacements thereof, provided such amendments or
         replacements shall in no way limit the original scope and/or definition
         of Hazardous Materials defined herein as of the execution of this
         Lease.

         6.3. USE OF HAZARDOUS MATERIALS. Tenant shall not cause or permit any
Hazardous Materials to be brought upon, kept, or used in the Premises or within
the Project by Tenant, its agents, employees, contractors or invitees in a
manner or for a purpose prohibited by or which could result in liability under
any applicable law, regulation, rule or ordinance, including, without
limitation, the Hazardous Materials Laws. Tenant shall, at its own expense, at
all times and in all respects comply with all Hazardous Materials Laws relating
to the industrial hygiene, environmental protection or the use, analysis,
generation, manufacture, storage, presence, disposal or transportation of any
Hazardous Materials. Tenant shall, at its own expense, procure, maintain in
effect and comply with all conditions of any and all permits, licenses and other
governmental and regulatory approvals relating to the presence of Hazardous
Materials within, on, under or about the Premises or required for Tenant's use
of the Premises. Tenant shall cause any and all Hazardous Materials to be
removed from the Premises and transported in accordance with and in compliance
with all Hazardous Materials Laws. Tenant shall in all respects, handle, treat,
deal with, and manage any and all Hazardous Materials in conformance with
Hazardous Materials Laws and prudent industry practices regarding the management
of such Hazardous Materials. Upon expiration or earlier termination of this
Lease, Tenant shall at its own expense, cause all Hazardous Materials (to the
extent such Hazardous Materials are generated, stored, released or disposed of
during the Term of this Lease by Tenant) to be removed from the Premises and
transported for use, storage or disposal in accordance and in compliance with
all applicable Hazardous Materials Laws. Tenant shall not take any remedial
action in response to the presence of any Hazardous Materials in, on, about or
under the Premises or the Project, nor enter into any settlement agreement,
consent, decree or other compromise in respect to any claims relating to or in
any way connected with the Premises or the Project without first notifying
Landlord of Tenant's intention to do so and affording Landlord ample opportunity
to take over the obligation for such remedial action and/or appear, intervene or
otherwise appropriately assert and protect Landlord's interest with respect
thereto.

         6.4. DISCLOSURES. Tenant shall promptly notify Landlord of, and shall
promptly provide Landlord with true, correct, complete and legible copies of,
all of the following environmental items relating to the Premises: reports filed
pursuant to any self-reporting requirements; reports filed pursuant to any
Applicable Laws or this Lease; all permit applications, permits, monitoring
reports, workplace exposure and community exposure warnings or notices, and all
other reports, disclosures, plans or documents (even those which may be
characterized as confidential) relating to water discharges, air pollution,
waste generation or disposal, underground storage tanks or Hazardous Materials;
all orders, reports, notices, listings and correspondence (even those which may
be considered confidential) of or concerning the release, investigation,
compliance, clean up, remedial and corrective actions, and abatement of
Hazardous Materials whether or not required by Applicable Laws; and all
complaints, pleadings and other legal documents filed against Tenant related to
Tenant's use, handling, storage or disposal of Hazardous Materials. Tenant shall
also comply with all laws, ordinances and regulations regarding the disclosure
of the presence or danger of Hazardous Materials. Tenant shall be solely
responsible for complying with Hazardous Materials Laws regarding the disclosure
of, the presence or danger of Hazardous Materials, including, without
limitation, all notices or other requirements under California Health and Safety
Code Section 25915 et seq.; and 25249.5 et seq. and California Code of
Regulations Section 12000 et seq.

         6.5. INSPECTION; COMPLIANCE. Landlord and Landlord's Agents shall have
the right, but not the obligation, to inspect, investigate, sample and/or
monitor the Premises, including any air, soil, water, groundwater or other
sampling, and any other testing, digging, drilling or analyses, at any time to
determine whether Tenant is complying with the terms of this Article VI, and in
connection therewith, Tenant shall provide Landlord with full access to all
relevant facilities, records and personnel. If Tenant is not in compliance with
any of the provisions of this Article VI, or in the event of a release of any
Hazardous Material on, under, from or about the Premises, Landlord and
Landlord's Agents shall have the right, but not the obligation, without
limitation on any of Landlord's other rights and remedies under this Lease, to
immediately enter upon the Premises and to discharge Tenant's obligations under
this Article VI at Tenant's expense, including without limitation the taking of
emergency or long-term remedial action. Landlord and Landlord's Agents shall
endeavor to minimize interference with Tenant's business but shall not be liable
for any such interference. All sums reasonably disbursed, deposited or incurred
by Landlord in connection herewith, including, but not limited to, all costs,
expenses and actual attorneys fees, shall be due and payable by Tenant to
Landlord, as an item of Additional Rent, on demand by Landlord, together with
interest thereon at the Applicable Rate from the date of such demand until paid
by Tenant.

         6.6. INDEMNIFICATION. To the fullest extent permitted by law, Tenant
hereby agrees to indemnify, hold harmless, protect and defend (with attorneys
acceptable to Landlord) Landlord and Landlord's Agents, and any successors to
all or any portion of Landlord's interest in the Premises, the Building and the
Project and their directors, officers, partners, employees, authorized agents,
affiliates, representatives and Mortgagees, from and against any and all
liabilities, losses, damages (including, but not limited to, damages for the
loss or restriction on use of rentable or usable space or any amenity of the
Premises, the Building and the Project or damages arising from any adverse
impact on marketing of space in the Premises, the Building and the Project),
diminution in the value of the Premises, the Building and the Project,
judgments, fines, demands, claims, recoveries, deficiencies, costs and expenses
(including, but not limited to, reasonable attorneys' fees, disbursements and
court costs and all other professional or consultant's expenses), whether
foreseeable or unforeseeable, arising directly or indirectly out of the
presence, use, generation, storage, treatment, on or off-site disposal or
transportation of Hazardous Materials on,

May 2, 2000
Page 8 of 26

<PAGE>   13
into, from, under or about the Premises, the Building and the Project by Tenant
or Tenant's Agents, and specifically including the cost of any required or
necessary repair, restoration, clean-up (including, but not limited to, the
costs of investigation and removal of Hazardous Materials) or detoxification of
the Premises, the Building and the Project and the preparation of any closure or
other required plans, whether or not such action is required or necessary during
the Term or after the expiration of this Lease.

         6.7. ASSIGNMENT AND SUBLETTING. If (i) any anticipated use of the
Premises by any proposed assignee or subtenant involves the generation, storage,
use, treatment or disposal of Hazardous Materials in a manner or for a purpose
prohibited by any governmental agency or authority, or (ii) the proposed
assignee or subtenant has been required by any prior landlord, lender or
governmental authority to take remedial action in connection with Hazardous
Material contaminating a property if the contamination resulted from such
party's action or use of the property in question, or (iii) the proposed
assignee or subtenant is subject to an enforcement order issued by any
governmental agency in connection with the use, disposal, or storage of
Hazardous Materials, it shall not be unreasonable for Landlord to withhold its
consent to an assignment or subletting to such proposed assignee or subtenant.
[SEE RIDER]

                                   ARTICLE VII
                      OPERATING EXPENSES; TAXES; UTILITIES

          7.1. TENANT TO BEAR TENANT'S SHARE OF EXCESS PROJECT EXPENSES. Tenant
shall pay to Landlord Tenant's Share (as defined in Section 7.2) of Project
Expenses in excess of the Project Expense Base as follows: Prior to the
Commencement Date and thereafter within ninety (90) days of the commencement of
each calendar year during the Term, Landlord shall give Tenant a written
estimate of Tenant's Share of Project Expenses in excess of the Project Expense
Base for the ensuing fiscal year or partial fiscal year, as the case may be.
Tenant shall pay, as an item of Additional Rent, such estimated amount in equal
monthly installments, in advance, on or before the first (1st) day of each
calendar month concurrent with its payment of Monthly Rent. If Landlord has not
furnished its written estimate by the time set forth above, Tenant shall pay
monthly installments of Project Expenses in excess of the Project Expense Base
at the rate established for the prior fiscal year, if any; provided that when
the new estimate is delivered to Tenant, Tenant shall at the next monthly
payment date pay Landlord any accrued deficiency based on the new estimate, or
Landlord shall credit any accrued overpayment based on such estimate toward
Tenant's next installment payment hereunder. Within a reasonable period of time
after the end of each fiscal year (in no event less than one hundred twenty
(120) days after the end of each fiscal year unless sooner completed by
Landlord) Landlord shall furnish Tenant a statement showing in reasonable detail
Tenant's Share of the actual Project Expenses in excess of the Project Expense
Base incurred for the period in question. If Tenant's estimated payments are
less than Tenant's Share of actual Project Expenses in excess of the Project
Expense Base as shown by the applicable statement, Tenant shall pay the
difference to Landlord within thirty (30) days thereafter. If Tenant shall have
overpaid Landlord, Landlord shall credit such overpayment toward Tenant's next
installment payment hereunder. When the final determination is made of Tenant's
Share of the actual Project Expenses in excess of the Project Expense Base for
the fiscal year in which this Lease terminates, Tenant shall, even if this Lease
has terminated, pay to Landlord within fifteen (15) days after notice the excess
of Tenant's Share of such actual Project Expenses in excess of the Project
Expense Base over the estimate of Tenant's Share of such Project Expenses paid.
Conversely, any overpayment shall be rebated by Landlord to Tenant. If Landlord
shall determine at any time that the estimate of Tenant's Share of Project
Expenses in excess of the Project Expense Base for the current fiscal year is or
will become inadequate to meet Tenant's Share of all such Project Expenses for
any reason, Landlord shall immediately determine the approximate amount of such
inadequacy and issue a supplemental estimate as to Tenant's Share of such
Project Expenses and Tenant shall pay any increase as reflected by such
supplemental estimate. Landlord shall keep or cause to be kept separate and
complete books of accounting covering all Project Expenses and showing the
method of calculating Tenant's Share of Project Expenses in excess of the
Project Expense Base, and shall preserve for at least twelve (12) months after
the close of each fiscal year all material documents evidencing said Project
Expenses for that fiscal year. Tenant, at its sole cost and expense, through any
certified public accountant designated by it, shall have the right, during
reasonable business hours and not more frequently than once during any fiscal
year, to examine and/or audit the books and documents mentioned above evidencing
such costs and expenses for the previous fiscal year. Any delay or failure by
Landlord in delivering any estimate or statement pursuant to this Section 7.1
shall not constitute a waiver of its right to require Tenant to pay Tenant's
Share of Project Expenses in excess of the Project Expense Base pursuant hereto.
[SEE RIDER)

         7.2. DEFINITION OF TENANT'S SHARE. The term "Tenant's Share" means a
fraction, the numerator of which is the Premises Rentable Square Feet of the
Premises and the denominator of which is the Premises Rentable Square Feet of
the Building. For purposes of establishing Tenant's Share as of the date of this
Lease, the number of Premises Rentable Square Feet of the Premises and the
number of Premises Rentable Square Feet of the Building are deemed to be as set
forth in Section 6 of the Basic Lease Provisions. At any time prior to the one
year anniversary of the Commencement Date, at Landlord's option, Landlord's
Space Planner may redetermine the actual number of the Building Rentable Square
Feet, which determination will be conclusive. Upon a redetermination of the
Building Rentable Square Feet, if any, there will be appropriate adjustments to
(i) the Premises Rentable Square Feet, based upon the definition of Premises
Rentable Square Feet set forth in Section 2.1 of this Lease, (ii) Tenant's
Share, (iii) the Monthly Rent and (iv) the Security Deposit. Landlord and Tenant
agree to execute an amendment to this Lease to reflect any such adjustment.

         7.3. DEFINITION OF OPERATING EXPENSES. The term "Operating Expenses"
means all costs and expenses paid or incurred by Landlord in connection with the
management, operation, maintenance and repair of the Project as determined by
generally accepted accounting practices consistently applied and shall include
the following costs and expenses by way of illustration but not limitation: the
cost of air conditioning, electricity, heating, mechanical, telephone,
ventilating and elevator systems and all other utilities; janitorial, trash
removal, trash recycling and security services; labor; salaries and benefits, if
any, of on-site property management staff; landscaping, fountains

May 2, 2000
Page 9 of 26
<PAGE>   14
and other interior and/or exterior water features; operation, maintenance, and
repair of the interior common and exterior areas of the Project, including
without limitation any specialty features such as the ground floor lobby
aquarium, and the operation, maintenance, repair and replacement of all common
area surfaces, carpets, coverings, decorations and art; supplies; materials;
equipment; tools; property management costs and fees, including, without
limitation, the rental value of the on-site management office as determined at
Landlord's sole discretion; the cost of any capital improvements made to the
Project by Landlord which Landlord determines in its reasonable discretion
reduce Operating Expenses and/or are required under any governmental law or
regulation not now applicable to the Project or not in effect at the time it was
constructed, such cost to be amortized over such reasonable period as Landlord
shall determine and to include a return on capital at the rate of the lesser of
ten percent (10%) per annum or the maximum per annum rate permitted by law on
the unamortized balance; fees or other charges incurred by Landlord in
connection with membership in energy conservation associations; water and sewer
charges; insurance premiums for all insurance carried on the Project or in
connection with the use or occupancy thereof, including, without limitation, the
cost of rental interruption insurance, unemployment insurance, fidelity bonds,
errors and omissions insurance and, if available at commercially reasonable
rates as determined by Landlord in its sole discretion, earthquake insurance;
fees, expenses and disbursements for legal, accounting and bookkeeping services;
and license, permit and inspection fees. [SEE RIDER]

         7.4. DEFINITION OF REAL PROPERTY TAXES. The term "Real Property Taxes"
means any form of tax, assessment, charge, license, fee, rent tax, levy, penalty
(if a result of Tenant's delinquency), real property or other tax, now or
hereafter imposed with respect to the Project or any part thereof (including any
Alterations), this Lease or any Rent payable under this Lease by any authority
having the direct or indirect power to tax, or by any city, county, state or
federal government or any improvement district or other district or division
thereof, whether such tax or any portion thereof (i) is determined by the area
of the Project or any part thereof or the Rent payable under this Lease by
Tenant including, but not limited to, any gross income or excise tax levied by
any of the foregoing authorities with respect to receipt of the Rent due under
this Lease, (ii) is levied or assessed in lieu of, in substitution for, or in
addition to, existing or additional taxes with respect to the Project or any
part thereof whether or not now customary or within the contemplation of
Landlord or Tenant, or (iii) is based upon any legal or equitable interest of
Landlord in the Project or any part thereof. Real Property taxes shall include,
without limitation, the following: (i) any tax imposed upon the transaction or
based upon a reassessment of the Premises due to a change in ownership or
transfer of all or part of Landlord's interest in the Premises; (ii) any
assessments, taxes, fees, levies or charges in addition to, or in substitution
of, partially or totally, any items previously included within the definition of
Property Taxes; (iii) any assessment, tax or charge for fire protection,
schools, streets, street lighting, sidewalks, area-wide road and landscape
maintenance, transportation management agency membership, refuse collection
and/or management, sewer, water or other services provided to the Premises by
any governmental or quasi-governmental agencies, boards, districts or
associations; (iv) capital levy, sales or use tax, gross receipts tax or other
tax on the rents received therefrom or from Landlord's business of operating the
Building or revenues derived therefrom or on the parking spaces within the
Building, or a franchise tax, or an assessment, levy or charge measured by or
based in whole or in part upon such rents or value, now or an assessment, levy
or charge measured by or based in whole or in part upon such rents or value, now
or hereafter imposed, and (v) any and all costs, including without limitation
the fees for experts, tax consultants and attorneys incurred by Landlord should
Landlord elect to negotiate or contest such Property taxes in formal or informal
proceedings before the governmental authority, it being acknowledged by Landlord
and tenant that Proposition 13 was adopted by the voters of the State of
California in the June, 1978 election and that assessments, taxes, fees, levies
and charges may be imposed by governmental agencies for such services as fire
protection, street sidewalk and road maintenance, refuse removal and for other
governmental services formerly provided without charge to property owners or
occupants. Property Taxes shall also include any and all costs including,
without limitation, the fees of experts, tax consultants and attorneys, incurred
by Landlord should Landlord elect to negotiate or contest the amount of any
Property Taxes in formal or informal proceedings before the taxing governmental
agency. If at any time during the Lease Term the laws concerning the methods of
real property taxation prevailing at the commencement of the Lease Term are
changed so that a tax or excise on rents or any other tax, however described, is
levied or assessed against Tenant as a substitution in whole or in part for any
real property taxes, then, Property Taxes shall include but not be limited to
any such assessment, tax fee, levy, or charge allocable to or measured by the
area of the Premises or the rent payable hereunder, including, without
limitation, any gross income tax with respect to the receipt of such rent, or
upon or with respect to the possession, leasing, operating, management,
maintenance, alteration, repair, use or occupancy by Tenant of the Building, or
any portion thereof. Property Taxes do not, however, include Landlord's state or
federal income, franchise, estate or inheritance taxes. Any tax reassessment
which results from construction of the Tenant Improvements pursuant to the Work
Letter will be included in the Property Tax component of the Project Expense
Base.

         7.5. Intentionally Deleted.

         7.6. TAX ON IMPROVEMENTS. Tenant shall, at Landlord's election, be
directly responsible for and shall pay the full amount of any increase in Real
Property Taxes attributable to any and all Tenant Improvements and any other
improvements of any kind whatsoever placed in, on or about the Premises for the
benefit of, at the request of, or by Tenant, to the extent such improvements
cause the value of all improvements in the Premises to exceed (i) the Tenant
Improvement Allowance, if any, specified in EXHIBIT "C" to this Lease, or
(ii) in the case where no Tenant Improvement Allowance is specified, the value
of the improvements existing in the Premises as of the Commencement Date of
this Lease.

         7.7. UTILITIES AND SERVICES. Provided that no Event of Default has
occurred and is continuing, Landlord agrees to furnish to the Premises during
reasonable hours of generally recognized business days, subject to the
conditions and in accordance with the standards set forth in the Rules and
Regulations, as may be amended in writing by Landlord from time to time during
the Term of this Lease and delivered to Tenant, reasonable quantities of
electric current for normal lighting and fractional horsepower office machines,
water for lavatory and drinking

May 2, 2000
Page 10 of 26

<PAGE>   15
purposes, heat and air conditioning required in Landlord's judgment for the
comfortable use and occupation of the Premises, janitorial service, and to the
extent provided in the Building only, elevator service by non-attended automatic
elevators. The cost of all such utilities and services shall be included within
the definition of Project Expenses, and shall be paid by Tenant in the manner
set forth in Section 7.1. Landlord shall not be liable for, and Tenant shall not
be entitled to any abatement or reduction of Rent by reason of Landlord's
failure to furnish any of the foregoing when such failure is caused by accident,
breakage, repairs, Unavoidable Delay or for any other causes. If Tenant requires
or utilizes more water or electrical power than is considered reasonable or
normal by Landlord, Landlord may at its option require Tenant to pay, as
Additional Rent, the cost, as reasonably determined by Landlord, incurred by
such extraordinary usage. In addition, Landlord may install separate meter(s)
for the Premises, at Tenant's sole expense, and Tenant thereafter shall pay all
charges of the metered service. Tenant shall cooperate with any present or
future government conservation requirements and with any conservation practices
established by Landlord. If there is any failure, stoppage or interruption of
any services provided hereunder, Landlord shall use reasonable diligence to
resume services promptly. Landlord shall at all times have free access to all
mechanical installations of the Building and Premises, including but not limited
to air conditioning equipment and vents, fans, ventilating and machine rooms and
electrical closets.

         7.8. SECURITY MEASURES. Tenant hereby acknowledges that Landlord shall
have no obligation whatsoever to provide guard service or other security
measures for the benefit of the Premises or the Project. Tenant assumes all
responsibility for the protection of Tenant, Tenant's Agents and the property of
Tenant and of Tenant's Agents from acts of third parties. Nothing herein
contained shall prevent Landlord, at Landlord's sole option, from providing
security protection for the Project or any part thereof, in which event the cost
thereof shall be included within the definition of Operating Expenses and paid
by Tenant in the manner set forth in Section 7.1.

                                  ARTICLE VIII
                                  ALTERATIONS

         8.1. PERMITTED ALTERATIONS. After the Commencement Date, Tenant shall
not make or permit any Alterations in, on or about the Premises without the
prior written consent of Landlord. Notwithstanding the foregoing, in no event
shall any Alterations (i) affect the exterior of the Building or the outside
areas (or be visible from adjoining sites), (ii) affect or penetrate any of the
structural portions of the Building, including, but not limited to, the roof,
(iii) require any change to the basic floor plan of the Premises, any change to
the structural or mechanical components of the Premises, or any governmental
approval or permit as a prerequisite to the construction thereof, (iv) interfere
in any manner with the proper functioning of or Landlord's access to any
mechanical, electrical, plumbing or HVAC systems, facilities or equipment
located in or serving the Building, or (v) diminish the value of the Premises.
All Alterations shall be constructed pursuant to plans and specifications
previously provided to and, when applicable, approved in writing by Landlord,
shall be installed by a licensed contractor at Tenant's sole expense in
compliance with all Applicable Laws, and shall be accomplished in a good and
workmanlike manner conforming in quality and design with the Premises existing
as of the Commencement Date. No Hazardous Materials, including, but not limited
to, asbestos or asbestos-containing materials, shall be used by Tenant or
Tenant's Agents in the construction of any Alterations permitted hereunder. All
Alterations made by Tenant shall be and become the property of Landlord upon the
installation thereof and shall not be deemed Tenant's Personal Property;
provided, however, that Landlord may, at its option, require that Tenant, upon
the termination of this Lease, at Tenant's expense, remove any or all
non-structural Alterations installed by or on behalf of Tenant (including
without limitation, telephone, data transmission, fiber-optic and other
telecommunications cabling and related facilities) and return the Premises to
its condition as of the Commencement Date of this Lease, normal wear and tear
excepted. Notwithstanding any other provisions of this Lease, Tenant shall be
solely responsible for the maintenance, repair and replacement of any and all
Alterations made by Tenant to the Premises (except to the extent part of
Landlord's normal maintenance obligations with respect to the Premises). [SEE
RIDER]

         8.2. TRADE FIXTURES. Tenant shall, at its own expense, provide, install
and maintain in good condition all of Tenant's Personal Property required in the
conduct of its business in the Premises.

         8.3. MECHANICS' LIENS. Tenant shall give Landlord Notice of Tenant's
intention to perform any work on the Premises which might result in any claim of
lien at least twenty (20) days prior to the commencement of such work to enable
Landlord to post and record a notice of non-responsibility or other notice
Landlord deems proper prior to the commencement of any such work. Tenant shall
not permit any mechanic's, materialmen's or other liens to be filed against the
property of which the Premises are a part or against Tenant's leasehold interest
in the Premises. If Tenant fails to cause the release of record of any lien(s)
filed against the Premises or its leasehold estate therein by payment or posting
of a proper bond within ten (10) days from the date of the lien filing(s), then
Landlord may, at Tenant's expense, cause such lien(s) to be released by any
means Landlord deems proper, including, but not limited to, payment of or
defense against the claim giving rise to the lien(s). All sums reasonably
disbursed, deposited or incurred by Landlord in connection with the release of
the lien(s), including, but not limited to, all costs, expenses and actual
attorneys' fees, shall be due and payable by Tenant to Landlord, as an item of
Additional Rent, on demand by Landlord, together with interest thereon at the
Applicable Rate from the date of such demand until paid by Tenant.

         8.4. ALTERATIONS BY LANDLORD. Landlord reserves the right at any time
and from time to time without the same constituting an actual or constructive
eviction and without incurring any liability to Tenant therefor or otherwise
affecting Tenant's obligations under this Lease, to make such changes,
alterations, additions, improvements, repairs or replacements in or to the
Building (including the Premises if required to do so by any Applicable Laws)
and the fixtures and equipment thereof, as well as in or to the street
entrances, walls, passages, and stairways thereof, or to change the name by
which the Building is commonly known, as Landlord may deem necessary or
desirable. Nothing contained herein shall be deemed to relieve Tenant of any
duty, obligation or liability of Tenant with respect to making any repair,
replacement or improvement or complying with any

May 2, 2000
Page 11 of 26
<PAGE>   16
Applicable Laws in connection with the Premises, and nothing contained herein
shall be deemed or construed to impose upon Landlord any obligation,
responsibility or liability whatsoever for the care, supervision or repair of
the Building or any part thereof other than as otherwise especially provided in
this Lease.

                                   ARTICLE IX
                             MAINTENANCE AND REPAIR

         9.1. LANDLORD'S MAINTENANCE AND REPAIR OBLIGATIONS. Landlord shall,
subject to receiving Tenant's Share of Operating Expenses in excess of the
Project Expense Base, and subject to Section 9.2, Article XII and Article XIII,
maintain in good condition and repair the roof (including any skylights, and
including as needed any replacement thereof), exterior walls, exterior entrances
and foundation of the Building, provide normal maintenance services for the HVAC
serving the Building through maintenance contracts or otherwise, and paint the
exterior of the Building and clean the exterior windows of the Building as and
when such painting or window cleaning, as the case may be, becomes necessary in
Landlord's sole discretion. Landlord shall also provide maintenance and repair
services to the automatic and manual fire extinguisher equipment, such as
sprinkler systems and alarms, electrical, plumbing, manual fire extinguishers
and mechanical systems serving the Premises and the interior portions of the
Common Area. Landlord shall not be required to make any unscheduled or
unanticipated repairs to the roof, exterior walls, exterior entrances,
foundation or any systems within the Premises unless and until Tenant has
notified Landlord in writing of the need for such repair and Landlord shall have
a reasonable period of time thereafter to commence and complete said repair, if
warranted. The cost of any maintenance and repairs on the part of Landlord
provided for in this Section 9.1 shall be considered part of Operating Expenses,
except that repairs which Landlord deems arise out of any act or omission of
Tenant or Tenant's Agents shall be made at the expense of Tenant. Landlord's
obligation to so repair and maintain the Premises shall be limited to the cost
of effecting such repair and maintenance and in no event shall Landlord be
liable for any costs or expenses in excess of said amounts, including, but not
limited to, any consequential damages, opportunity costs or lost profits
incurred or suffered by Tenant.

         9.2. TENANT'S MAINTENANCE AND REPAIR OBLIGATIONS. Tenant shall at all
times during the Term of this Lease, at Tenant's sole cost and expense, clean,
keep, maintain, repair and make necessary improvements to, the Premises and
every portion thereof and all improvements therein or thereto, in good and
sanitary order and condition to the reasonable satisfaction of Landlord and in
compliance with all Applicable Laws, usual wear and tear excepted. Any damage or
deterioration of the Premises shall not be deemed usual wear and tear if the
same could have been prevented by good maintenance practices by Tenant. Tenant's
repair and maintenance obligations herein shall include, but are not limited to,
all necessary maintenance and repairs to all portions of the Premises, and all
interior glass, windows, window casements, show window moldings, partitions,
doors, doorjambs, door closures, hardware, fixtures, electrical lighting and
outlets, lighting switches, plumbing fixtures, sewage facilities, interior
walls, floors, ceilings, fans and exhaust equipment. Landlord may impose
reasonable restrictions and requirements with respect to repairs by Tenant,
which repairs shall be at least equal in quality to the original work, and the
provisions of Section 8.3 shall apply to all such repairs. Tenant's obligation
to repair includes the obligation to replace, as necessary, regardless of
whether the benefit of such replacement extends beyond the Term. Notwithstanding
the foregoing, Landlord shall have the right, upon notice to Tenant, to
undertake the responsibility for maintenance and repair obligations of Tenant
hereunder which Landlord deems appropriate to undertake that affect the Building
as a whole, in which event the cost thereof shall be included as part of
Operating Expenses and paid by Tenant in the manner set forth in Section 7.1.
Tenant shall not permit or authorize any person to go onto the roof of the
Building without the prior written consent of Landlord.

         9.3. WAIVER. Tenant hereby waives all rights provided for by the
provisions of Sections 1941 and 1942 of the California Civil Code and any
present or future laws regarding Tenant's right to make repairs at the expense
of Landlord or to terminate this Lease because of the condition of the Premises.

         9.4. SELF-HELP. If Tenant refuses or fails to repair and maintain the
Premises as required hereunder within ten (10) days from the date on which
Landlord makes a written demand on Tenant to effect such repair and maintenance,
Landlord may enter upon the Premises and make such repairs or perform such
maintenance without liability to Tenant for any loss or damage that may accrue
to Tenant or its merchandise, fixtures or other property or to Tenant's business
by reason thereof. All sums reasonably disbursed, deposited or incurred by
Landlord in connection with such repairs or maintenance, plus five percent (5%)
for overhead, shall be due and payable by Tenant to Landlord, as an item of
Additional Rent, on demand by Landlord, together with interest at the Applicable
Rate on such aggregate amount from the date of such demand until paid by Tenant.

                                    ARTICLE X
                             COMMON AREA AND PARKING

         10.1. GRANT OF NONEXCLUSIVE COMMON AREA LICENSE AND RIGHT. Landlord
hereby grants to Tenant and its permitted subtenants, in common with Landlord
and all persons, firms and corporations conducting business in the Project and
their respective customers, guests, licensees, invitees, subtenants, employees
and agents, a nonexclusive license and right to use the interior and exterior
portions of the Common Area within the Project for pedestrian and vehicular
ingress, egress and travel, parking and for such other purposes and for doing
such other things as may be provided for, authorized and/or permitted by the
Restrictions, such nonexclusive license and right to be appurtenant to Tenant's
leasehold estate created by this Lease. The nonexclusive license and rights
granted pursuant to the provisions of this Article X shall be subject to the
provisions of the Restrictions, which pertain in any way to the Common Area
covered by such Restrictions, and the provisions of this Lease.

         10.2. USE OF COMMON AREA. Notwithstanding anything to the contrary
herein, Tenant and its successors, assigns, employees, agents and invitees shall
use the Common Area only for the purposes permitted hereby and by the
Restrictions and the Rules and Regulations. All uses permitted within the Common
Area shall be

May 2, 2000
Page 12 of 26
<PAGE>   17
undertaken with reason and judgment so as not to interfere with the primary uses
of the Common Area. In no event shall Tenant obstruct the interior portions of
the Common Area or erect, install, or place, or cause to be erected, installed,
or placed any structure, building, trailer, fence, wall, signs or other
obstructions on the exterior portions of the Common Area. Tenant shall not store
or sell any merchandise, equipment or materials within the interior or exterior
portions of the Common Area.

         10.3. CONTROL OF COMMON AREA. Subject to provisions of the
Restrictions, all Common Area and all improvements located from time to time
within the Common Area shall at all times be subject to the exclusive control
and management of the Landlord. Landlord shall have the right to construct,
maintain and operate lighting facilities within the exterior portions of the
Project; to police the interior and exterior portions of the Common Area from
time to time; to change the area, location and arrangement of the parking areas
and other improvements within the Common Area; to restrict parking by tenants,
their officers, agents and employees to employee parking areas; to close all or
any portion of the exterior portions of the Common Area or improvements therein
to such extent as may, in the opinion of counsel for Landlord, be legally
sufficient to prevent a dedication thereof or the accrual of any rights to any
person or to the public therein; to close temporarily all or any portion of the
Common Area and/or the improvements thereon; to discourage unauthorized parking;
and to do and perform such other acts in and to said Common Area and
improvements thereon as, in the use of good business judgment, Landlord shall
determine to be advisable.

         10.4. MAINTENANCE OF COMMON AREA. Subject to the provisions of the
Restrictions, Landlord shall operate and maintain (or cause to be operated and
maintained) the Common Area in good condition, in such manner as Landlord in its
sole discretion shall determine from time to time. Without limiting the scope of
such discretion, Landlord shall have the full right and authority to employ or
cause to be employed all personnel and to make or cause to be made all rules and
regulations pertaining to or necessary for the proper operation and maintenance
of the Common Area and the improvements located thereon. The cost of such
maintenance of the Common Area shall be included as part of Operating Expenses.
No part of the Common Area may be used for the storage of any items, including
without limitation, vehicles, materials, inventory and equipment. All trash and
other refuse shall be placed in designated receptacles. No work of any kind,
including, but not limited to, painting, drying, cleaning, repairing,
manufacturing, assembling, cutting, merchandising or displaying shall be
permitted within any portion of the Common Area.

         10.5. REVOCATION OF LICENSE. All Common Area and improvements located
thereon which Tenant is permitted to use and occupy pursuant to the provisions
of this Lease are to be used and occupied under a revocable license and right,
and if any such license be revoked, or if the amount of such areas be
diminished, Landlord shall not be subject to any liability nor shall Tenant be
entitled to compensation or diminution or abatement of Rent, and such revocation
or diminution of such areas shall not be deemed constructive or actual eviction.
It is understood and agreed that the condemnation or other taking or
appropriation by any public or quasi-public authority, or sale in lieu of
condemnation, of all or any portion of the Common Area shall not constitute a
violation of Landlord's agreements hereunder, and Tenant shall not be entitled
to participate in or make any claim for any award or other condemnation proceeds
arising from any such taking or appropriation of the Common Area.
Notwithstanding the foregoing, so long as no Event of Default has occurred and
is continuing, Landlord shall provide to Tenant the number of vehicle parking
spaces allocated to Tenant under this Lease (subject to the rights of Landlord
under this Article X).

         10.6. LANDLORD'S RESERVED RIGHTS. Landlord reserves the right to
install, use, maintain, repair, relocate and replace pipes, ducts, conduits,
wires and appurtenant meters and equipment included in the Premises or outside
the Premises, change the boundary lines of the Project and install, use,
maintain, repair, alter or relocate, expand and replace any Common Area;
provided, however, Landlord shall not unreasonably interfere with Tenant's use
of the Premises. Such rights of Landlord shall include, but are not limited to,
designating from time to time certain portions of the Common Area as exclusively
for the benefit of certain tenants in the Project.

         10.7. PARKING. Tenant shall be entitled to use, on a non-exclusive
basis, forty three (43) parking spaces consistent with the permitted uses of the
Premises, which spaces shall be unreserved and unassigned, within those portions
of the exterior Common Area designated by Landlord for parking. Tenant shall not
overly-burden the parking area. All parking of vehicles shall be in strict
accordance with the Rules and Regulations attached hereto AS EXHIBIT "E" and
incorporated herein by reference, and any modifications or supplements thereto.
Landlord reserves the right to institute a paid parking program for building
guests and invitees, and a reserved parking system for Tenants of the Project;
in no event, however, shall Tenant or Tenant's regular employees employed at the
Premises be charged for unreserved parking.

         10.8. SATELLITE DISH. If Landlord permits Tenant to install a satellite
dish within the Project (which Landlord has the right to condition upon the
payment of additional rent, in an amount to be specified by Landlord), such
installation shall be installed in a manner and location acceptable to Landlord
in its sole discretion. Tenant shall indemnify, protect, defend and hold
Landlord and Landlord's Indemnitees harmless from any and all damages,
liabilities, costs and expenses (including without limitation attorneys' fees
and costs of defense), arising from or attributable to any damages to the roof
or other structures or improvements within the Project resulting from any
permitted installation of the antennae and/or related facilities by Tenant or
any impairment of any roof warranties of Landlord. The location and installation
of the satellite dish antennae shall also be subject to all governmental
regulations, to the approval of the appropriate governing agencies, and to the
Restrictions. Tenant shall not be permitted to enter upon the roof or any
restricted area of the Project to maintain, service, repair, replace or remove
any satellite dish equipment without the prior written consent of Landlord. The
failure of any satellite dish to function or operate as desired by Tenant, for
any reason, shall not constitute interference by Landlord of Tenant's enjoyment
of the Premises or constitute a breach of this Lease by Landlord.

May 2, 2000
Page 13 of 26

<PAGE>   18
                                   ARTICLE XI
                   EXCULPATION, INDEMNIFICATION AND INSURANCE

         11.1. INDEMNIFICATION. To the fullest extent permitted by law, Tenant
hereby agrees to defend (with attorneys acceptable to Landlord), indemnify,
protect and hold harmless Landlord and Landlord's Agents and any successors to
all or any portion of Landlord's interest in the Premises and their directors,
officers, partners, employees, authorized agents, representatives, affiliates
and Mortgagees, from and against any and all damage, loss, claim, liability and
expense including, but not limited to, actual attorneys' fees and legal costs,
incurred directly or indirectly by reason of any claim, suit or judgment brought
by or on behalf of (i) any person or persons for damage, loss or expense due to,
but not limited to, bodily injury or property damage sustained by such person or
persons which arise out of, are occasioned by, or are in any way attributable to
the use or occupancy of the Premises or the acts or omissions of the Tenant or
Tenant's Agents in or about the Premises or the Project (including but not
limited to any Event of Default hereunder), or (ii) Tenant or Tenant's Agents
for damage, loss or expense due to, but not limited to, bodily injury or
property damage which arise out of, are occasioned by, or are in any way
attributable to the use of any of the Common Area, except to the extent caused
by the sole active negligence or willful misconduct of Landlord.

         11.2. LANDLORD'S PROPERTY INSURANCE. Landlord shall obtain and keep in
force during the Term of this Lease a policy or policies of insurance, with
deductibles at the sole discretion of Landlord, covering loss or damage to the
Premises and the Building, the Tenant Improvements and objects owned by Landlord
and normally covered under a "Boiler and Machinery" policy (as such term is used
in the insurance industry) at least in the amount of the full replacement cost
thereof, and in no event less than the total amount required by Mortgagees,
against all perils included within the classification of fire, extended
coverage, vandalism, malicious mischief, special extended perils ("all risk" or
"special causes of action," as such terms are used in the insurance industry,
including, at Landlord's option, collapse, earthquake and flood) and other
perils as required by the Mortgagees or deemed necessary by Landlord. A
stipulated value or agreed amount endorsement deleting any co-insurance
provision of said policy or policies shall be procured with said insurance. The
cost of such insurance policies shall be included in the definition of Operating
Expenses, and shall be paid by Tenant in the manner set forth in Section 7.1.
Such insurance policies shall provide for payment of loss thereunder to Landlord
or, at Landlord's election, to the Mortgagees. If the Premises are part of a
larger building, or if the Premises are part of a group of buildings owned by
Landlord which are adjacent to the Premises, then Tenant shall pay for any
increase in the property insurance of the Building or such other building or
buildings within the Project if such increase is caused by Tenant's acts,
omissions, use or occupancy of the Premises. Tenant shall obtain and keep in
force during the Term, at its sole cost and expense, (i) an "all risk" or
"special causes of action" property policy in the amount of the full replacement
cost covering Tenant's Personal Property and any Alterations made by or at the
request of Tenant, with Landlord insured as its interest may appear, and (ii) an
"all risk" or "special causes of action" policy of business interruption and/or
loss of income insurance covering a period of two (2) years, plus such
additional period of time, if any, as will permit Tenant to be in a position to
have the same revenues as were in effect the day before a loss giving rise to a
claim under such insurance occurs, with loss payable to Landlord to the extent
of Monthly Rent and Additional Rent only.

         11.3. TENANT'S INSURANCE. Tenant shall maintain in full force and
effect at all times during the Term (plus such earlier and later periods as
Tenant may be in occupancy of the Premises), at its sole cost and expense, for
the protection of Tenant, Landlord and Landlord's Agents and Mortgagees,
policies of insurance issued by a carrier or carriers acceptable to Landlord and
the Mortgagees which afford the following coverages: (i) statutory workers'
compensation, (ii) employer's liability with minimum limits of Five Hundred
Thousand Dollars ($500,000.00), (iii) comprehensive/commercial general liability
insurance including, but not limited to, blanket contractual liability
(including the indemnity set forth in Section 11.1), fire and water legal
liability (having a minimum coverage of $50,000.00), broad form property damage,
personal injury, completed operations, products liability, independent
contractors, warehouser's legal liability and, if alcoholic beverages are
served, manufactured, distributed or sold in the Premises, comprehensive liquor
liability, and owned, non-owned and hired vehicles, on an occurrence basis and
not less than $2,000,000.00, combined single limit (or current limit carried,
whichever is greater), naming Landlord, Landlord's Agents and the Mortgagees as
additional insureds, and including a cross-liability or severability of
interests indorsement, (iv) insurance against fire, vandalism, malicious
mischief and fixtures, furnishings, equipment and items of personal property in
the Premises owned or leased by Tenant, in an amount equal to not less than
ninety percent (90%) of their actual replacement cost (and with a replacement
cost endorsement), income/business interruption/extra expense coverage in an
amount of not less than nine (9) months of loss of income from Tenant's business
in the Premises, and (v) such other insurance in such form and amounts as may be
required by Landlord or the Mortgagees from time to time. Landlord or Landlord's
Agents on behalf of Landlord may, at Landlord's election, obtain liability
insurance in such amounts and on such terms as Landlord shall determine, and the
cost thereof shall be included in Operating Expenses and paid by Tenant in the
manner described in Section 7.1. In no event shall the limits of any policy
obtained by Tenant with respect to the Premises or required to be obtained by
Tenant under this Lease be considered as limiting the liability of Tenant under
this Lease.

         11.4. DEDUCTIBLES. Any policy of insurance required pursuant to this
Lease containing a deductible exceeding Five Thousand Dollars ($5,000.00) per
occurrence must be approved in writing by Landlord prior to the issuance of such
policy. Tenant shall be solely responsible for the payment of any deductible.

         11.5. BLANKET COVERAGE. Any insurance required of Tenant pursuant to
this Lease may be provided by means of a so-called "blanket policy", so long as
(i) the Premises are specifically covered (by rider, endorsement or otherwise),
(ii) the limits of the policy are applicable on a "per location" basis to the
Premises and provide for restoration of the aggregate limits, and (iii) the
policy otherwise complies with the provisions of this Lease.

         11.6. INCREASED COVERAGE. Upon demand, Tenant shall provide Landlord,
at Tenant's expense, with such increased amount of existing insurance, and such
other insurance as the Mortgagees may reasonably require.

May 2, 2000
Page 14 of 26

<PAGE>   19
         11.7. SUFFICIENCY OF COVERAGE. Neither Landlord nor any of Landlord's
Agents makes any representation that the types of insurance and limits specified
to be carried by Tenant under this Lease are adequate to protect Tenant. If
Tenant believes that any such insurance coverage is insufficient, Tenant shall
provide, at its own expense, such additional insurance as Tenant deems adequate.
Nothing contained herein shall limit Tenant's liability under this Lease, and
Tenant's liability under any provision of this Lease, including without
limitation under any indemnity provisions, shall not be limited to the amount of
any insurance obtained.

         11.8. INSURANCE REQUIREMENTS. Tenant's insurance (i) shall be in a form
satisfactory to Landlord and the Mortgagees and shall be carried with companies
that have a general policyholder's rating of not less than "A" and a Financial
Class Size of "VIII" or higher according to the current version of A.M. Best's
Key Rating Guide or as otherwise approved in writing by Landlord, in its sole
discretion, as financially sound on a current basis, (ii) shall provide that
such policies shall not be subject to material alteration or cancellation except
after at least thirty (30) days prior written notice to Landlord, and (iii)
shall be primary, and any insurance carried by Landlord or Landlord's Agents
shall be non-contributing. Tenant's policy or policies, or duly executed
certificates for them in the form and content reasonably satisfactory to
Landlord, shall be deposited with Landlord prior to the Commencement Date, and
thereafter during the Term not later than thirty (30) days prior to
expiration/renewal date of such policies. If Tenant fails to procure and
maintain the insurance required to be procured by Tenant under this Lease, such
failure shall constitute an "Event of Default" by Tenant under Section 15.1 of
the Lease, and Landlord may, but shall not be required to, without waiver of
such default, order such insurance at Tenant's expense. All sums reasonably
disbursed, deposited or incurred by Landlord in connection therewith, including,
but not limited to, all costs, expenses and actual attorneys' fees, shall be due
and payable by Tenant to Landlord, as an item of Additional Rent, on demand by
Landlord, together with interest thereon at the Applicable Rate from the date of
such demand until paid by Tenant.

         11.9. INTENTIONALLY DELETED.

         11.10. LANDLORD'S DISCLAIMER. Notwithstanding any other provisions of
this Lease, and to the fullest extent permitted by law, Landlord and Landlord's
Agents shall not be liable for any loss or damage to persons or property
resulting from theft, vandalism, fire, explosion, falling materials, glass, tile
or sheet rock, steam, gas, electricity, water or rain which may leak from any
part of the Premises, or from the pipes, appliances or plumbing works therein or
from the roof, street or subsurface or whatsoever, unless caused by or due to
the sole active negligence or willful misconduct of Landlord. Landlord and
Landlord's Agents shall not be liable for interference with light or air, or for
any latent defect in the Premises except as otherwise expressly provided in this
Lease. Tenant shall give prompt Notice to Landlord in case of a casualty,
accident or repair needed to the Premises.

         11.11. WAIVER OF SUBROGATION. Landlord and Tenant agree to cause the
insurance companies issuing their respective property (first party) insurance to
waive any subrogation rights that those companies may have against Tenant or
Landlord, respectively, as long as the insurance is not invalidated by the
waiver. If the waivers of subrogation are contained in their respective
insurance policies, Landlord and Tenant waive any right that either may have
against the other on account of any loss or damage to their respective property
to the extent that the loss or damage is insured under their respective
insurance policies.

                                   ARTICLE XII
                              DAMAGE OR DESTRUCTION

         12.1. LANDLORD'S OBLIGATION TO REBUILD. If the Premises are damaged or
destroyed by fire or other casualty (a "Casualty"), Tenant shall promptly give
notice thereof to Landlord, and Landlord shall thereafter repair the Premises as
set forth in Sections 12.4 and 12.5 unless Landlord has the right to terminate
this Lease as provided in Section 12.2 and Landlord elects to terminate or
Tenant has the right to terminate this Lease as provided in Section 12.3 and
Tenant elects to so terminate.

         12.2. LANDLORD'S RIGHT TO TERMINATE. Landlord shall have the right to
terminate this Lease following a Casualty if any of the following occurs: (i)
insurance proceeds (together with any additional amounts Tenant elects, at its
option, to contribute) are not available to Landlord to pay one hundred percent
(100%) of the cost to fully repair the Premises, excluding the deductible (for
which Tenant shall pay Tenant's Share of such deductible); (ii) Landlord's Space
Planner determines that the Premises cannot, with reasonable diligence, be fully
repaired by Landlord (or cannot be safely repaired because of the presence of
hazardous factors, including, but not limited to, Hazardous Materials,
earthquake faults, radiation, chemical waste and other similar dangers) within
one hundred eighty (180) days after the date of such Casualty; (iii) the
Premises are destroyed or damaged during the last twelve (12) months of the
Term; or (iv) an Event of Default has occurred and is continuing at the time of
such Casualty. If Landlord elects to terminate this Lease following a Casualty
pursuant to this Section 12.2, Landlord shall give Tenant Notice of its election
to terminate within fifteen (15) days after Landlord has knowledge of such
Casualty, and this Lease shall terminate fifteen (15) days after the date of
such Notice.

         12.3. TENANT'S RIGHT TO TERMINATE. Subject to the later terms hereof,
Tenant shall have the right to terminate this Lease following the destruction of
the Premises (or damage to the Premises so extensive as to reasonably prevent
Tenant's substantial use and enjoyment of the Premises) if any of the following
occurs: (i) the Premises cannot, with reasonable diligence, be fully repaired by
Landlord within one hundred eighty (180) days after the date of the damage or
destruction, as determined by Landlord's Space Planner; (ii) the Premises cannot
safely be repaired because of the presence of hazardous factors, including
Hazardous Materials, earthquake faults, radiation, chemical waste and other
similar dangers; or (iii) the damage or destruction occurs during the last
twelve (12) months of the Term and cannot, with reasonable diligence, be fully
repaired by Landlord within ninety (90) days after the date of the destruction
or damage, as determined by Landlord's Space Planner. Notwithstanding the

May 2, 2000
Page 15 of 26
<PAGE>   20
foregoing, Tenant shall not have the right to terminate under this Section 12.3
if (a) an Event of Default has occurred and is continuing at the time of such
damage or destruction or at the time of exercising the right to terminate, or
(b) the damage or destruction was caused, in whole or in part, by the act or
omission of Tenant or Tenant's Agents. If Tenant elects to terminate this Lease
pursuant to this Section 12.3, Tenant shall give Landlord Notice of its election
to terminate within ten (10) days after the date of such damage or destruction,
and this Lease shall terminate thirty (30) days after the date of such Notice.

         12.4. EFFECT OF TERMINATION. If this Lease is terminated following a
Casualty pursuant to Section 12.2 or Section 12.3, Landlord shall, subject to
the rights of the Mortgagees, be entitled to receive and retain all the
insurance proceeds resulting from or attributable to such Casualty, except for
those proceeds payable under policies obtained by Tenant which specifically
insure Tenant's Personal Property. If neither party exercises any such right to
terminate this Lease, this Lease will continue in full force and effect, and
Landlord shall, promptly following the tenth (10th) day after the date of such
Casualty and receipt of the amounts set forth in clause (i) of Section 12.2,
commence the process of obtaining necessary permits and approvals for the repair
of the Premises, and shall commence such repair and prosecute the same
diligently to completion as soon thereafter as is practicable. Tenant shall
fully cooperate with Landlord in removing Tenant's Personal Property and any
debris from the Premises to facilitate the making of such repairs.

         12.5. LIMITED OBLIGATION TO REPAIR. Landlord's obligation, should it
elect or be obligated to repair the Premises following a Casualty, shall be
limited to the basic Building and Tenant Improvements and Tenant shall, at its
expense, replace or fully repair all Tenant's Personal Property and any
Alterations installed by Tenant existing at the time of such Casualty. If the
Premises are to be repaired in accordance with the foregoing, Tenant shall make
available to Landlord any portion of insurance proceeds it receives which are
allocable to the Tenant Improvements.

         12.6. ABATEMENT OF MONTHLY RENT. During any period when there is
substantial interference with Tenant's use of the Premises by reason of a
Casualty, Monthly Rent shall be temporarily abated in proportion to the degree
of such substantial interference, but only to the extent of any business
interruption or loss of income insurance proceeds received by Landlord from
Tenant's insurance described in Section 11.5.4.2. Such abatement shall commence
upon the date Tenant notifies Landlord of such Casualty and shall end upon the
Substantial Completion of the repair of the Premises which Landlord undertakes
or is obligated to undertake hereunder. Tenant shall not be entitled to any
compensation or damages from Landlord for loss of the use of the Premises,
Tenant's Personal Property or other damage or any inconvenience occasioned by a
Casualty or by the repair or restoration of the Premises thereafter, including,
but not limited to, any consequential damages, opportunity costs or lost profits
incurred or suffered by Tenant. Tenant hereby waives the provisions of Section
1932(2) and Section 1933(4) of the California Civil Code, and the provisions of
any similar or successor statutes.

         12.7. LANDLORD'S DETERMINATION. The determination in good faith by
Landlord's Space Planner of or relating to the estimated cost of repair of any
damage, replacement cost, the time period required for repair or the
interference with or suitability of the Premises for Tenant's use or occupancy
shall be conclusive for purposes of this Article XII and Article XIII.

                                  ARTICLE XIII
                                  CONDEMNATION

         13.1. TOTAL TAKING - TERMINATION. If title to the Premises or so much
thereof is taken for any public or quasi-public use under any statute or by
right of eminent domain so that reconstruction of the Premises will not result
in the Premises being reasonably suitable for Tenant's continued occupancy for
the uses and purposes permitted by this Lease, this Lease shall terminate as of
the date possession of the Premises or part thereof is so taken.

         13.2. PARTIAL TAKING. If any part of the Premises is taken for any
public or quasi-public use under any statute or by right of eminent domain and
the remaining part is reasonably suitable for Tenant's continued occupancy for
the uses permitted by this Lease, this Lease shall, as to the part so taken,
terminate as of the date that possession of such part of the Premises is taken
and the Monthly Rent shall be reduced in the same proportion that the floor area
of the portion of the Premises so taken (less any addition thereto by reason of
any reconstruction) bears to the original floor area of the Premises, as
reasonably determined by Landlord or Landlord's Space Planner. Landlord shall,
at its own cost and expense, make all necessary repairs or alterations to the
Premises so as to make the portion of the Premises not taken a complete
architectural unit. Such work shall not, however, exceed the scope of the work
done by Landlord in originally constructing the Premises. If severance damages
from the condemning authority are not available to Landlord in sufficient
amounts to permit such restoration, Landlord may terminate this Lease upon
Notice to Tenant. Monthly Rent due and payable hereunder shall be temporarily
abated during such restoration period in proportion to the degree to which there
is substantial interference with Tenant's use of the Premises, as reasonably
determined by Landlord or Landlord's Space Planner. Each party hereby waives the
provisions of Section 1265.130 of the California Code of Civil Procedure and any
present or future law allowing either party to petition the Superior Court to
terminate this Lease in the event of a partial taking of the Building or
Premises.

         13.3. NO APPORTIONMENT OF AWARD. No award for any partial or total
taking shall be apportioned, it being agreed and understood that Landlord shall
be entitled to the entire award for any partial or entire taking. Tenant assigns
to Landlord its interest in any award which may be made in such taking or
condemnation, together with any and all rights of Tenant arising in or to the
same or any part thereof. Nothing contained herein shall be deemed to give
Landlord any interest in or require Tenant to assign to Landlord any separate
award made to Tenant for the taking of Tenant's Personal Property, for the
interruption of Tenant's business or its moving costs, or for the loss of its
goodwill.

May 2, 2000
Page 16 of 26

<PAGE>   21
         13.4. TEMPORARY TAKING. No temporary taking of the Premises (which for
purposes hereof shall mean a taking of all or any part of the Premises for one
hundred eighty (180) days or less) shall terminate this Lease or give Tenant any
right to any abatement of Rent. Any award made to Tenant by reason of such
temporary taking shall belong entirely to Tenant and Landlord shall not be
entitled to share therein. Each party agrees to execute and deliver to the other
all instruments that may be required to effectuate the provisions of this
Section 13.4.

         13.5. SALE UNDER THREAT OF CONDEMNATION. A sale made in good faith to
any authority having the power of eminent domain, either under threat of
condemnation or while condemnation proceedings are pending, shall be deemed a
taking under the power of eminent domain for all purposes of this Article XIII.

                                   ARTICLE XIV
                            ASSIGNMENT AND SUBLETTING

         14.1. PROHIBITION. Tenant shall not directly or indirectly, voluntarily
or by operation of law, assign (which term shall include any transfer,
assignment, pledge, mortgage or hypothecation) this Lease, or any right or
interest hereunder, or sublet the Premises or any part thereof, or allow any
other person or entity to occupy or use all or any part of the Premises without
first obtaining the written consent of Landlord in each instance, which consent
shall not be unreasonably withheld, conditioned or delayed. No assignment,
encumbrance, subletting or other transfer in violation of the terms of this
Article XIV, whether voluntary or involuntary, by operation of law, under legal
process or proceedings, by receivership, in bankruptcy, or otherwise shall be
valid or effective and, at the option of Landlord, shall constitute an Event of
Default under this Lease. To the extent not prohibited by provisions of the
Bankruptcy Code of 1978, 11 U.S.C. Section 101 et seq. (the "Bankruptcy Code"),
Tenant on behalf of itself, creditors, administrators and assigns waives the
applicability of Sections 541(c) and 365(e) of the Bankruptcy Code unless the
proposed assignee of the trustee for the estate of the bankrupt meets Landlord's
standards for consent as set forth below. Landlord has entered into this Lease
with Tenant in order to obtain for the benefit of the Project the unique
attraction of Tenant's name and business; the foregoing prohibition on
assignment or subletting is expressly agreed to by Tenant in consideration of
such fact. If this Lease is assigned to any person or entity pursuant to the
provisions of the Bankruptcy Code, any and all monies or other considerations
payable or otherwise to be delivered in connection with such assignment shall be
paid or delivered to Landlord, shall be and remain the exclusive property of
Landlord and shall not constitute property of Tenant or the estate of Tenant
within the meaning of the Bankruptcy Code. Any and all monies or other
considerations constituting Landlord's property under the preceding sentence not
paid or delivered to Landlord shall be held in trust for the benefit of Landlord
and be promptly paid or delivered to Landlord. Any person or entity to which
this Lease is assigned pursuant to the provisions of the Bankruptcy Code shall
be deemed without further act or deed to have assumed all of the obligations
arising under this Lease on and after the date of such assignment. Any such
assignee shall upon demand execute and deliver to Landlord an instrument
confirming such assumption.

         14.2. LANDLORD'S CONSENT. In the event Landlord consents to any
assignment or subletting, such consent shall not constitute a waiver of any of
the restrictions of this Article XIV and the same shall apply to each successive
assignment or subletting hereunder, if any. In no event shall Landlord's consent
to an assignment or subletting affect the continuing primary liability of Tenant
(which, following assignment, shall be joint and several with the assignee), or
relieve Tenant of any of its obligations hereunder without an express written
release being given by Landlord. In the event that Landlord shall consent to an
assignment or subletting under this Article XIV, such assignment or subletting
shall not be effective until the assignee or sublessee shall assume all of the
obligations of this Lease on the part of Tenant to be performed or observed and
whereby the assignee or sublessee shall agree that the provisions contained in
this Lease shall, notwithstanding such assignment or subletting, continue to be
binding upon it with respect to all future assignments and sublettings. Such
assignment or sublease agreement shall be duly executed and a fully executed
copy thereof shall be delivered to Landlord, and Landlord may collect Monthly
Rent and Additional Rent due hereunder directly from the assignee or sublessee.
Collection of Monthly Rent and Additional Rent directly from an assignee or
sublessee shall not constitute a consent or a waiver of the necessity of consent
to such assignment or subletting, nor shall such collection constitute a
recognition of such assignee or sublessee as the Tenant hereunder or a release
of Tenant from the performance of all of its obligations hereunder. Any sign
rights granted to Tenant under this Lease shall not be assignable to or usable
by any assignee or sublessee of Tenant without the prior written consent of
Landlord, in its sole and absolute discretion.

         14.3. INFORMATION. Regardless of whether Landlord's consent is required
under this Article XIV, Tenant shall notify Landlord in writing of Tenant's
intent to assign this Lease or any right or interest hereunder, or to sublease
the Premises or any part thereof, and of the name of the proposed assignee or
sublessee, the nature of the proposed assignee's or sublessee's business to be
conducted on the Premises, the terms and provisions of the proposed assignment
or sublease, a copy of the proposed assignment or sublease form, and such other
information as Landlord may reasonably request concerning the proposed assignee
or sublessee, including, but not limited to, a description of the business of
the proposed assignee or sub-tenant, the net worth, income statements and other
financial statements of the proposed assignee or sub-tenant (including
individual principals, if requested by Landlord) for a two-year period preceding
Tenant's request for consent, evidence of insurance complying with the
requirements of Article XI, and the fee described in Section 14.7. Landlord may
require that the sublessee complete and submit an application to Landlord
providing the foregoing information and such additional information as Landlord
may require.

         14.4. STANDARD FOR CONSENT. Landlord shall, within fifteen (15) days of
receipt of such Notice and all information requested by Landlord concerning the
proposed assignee or sublessee, elect to take one of the following actions:

                  (a) consent to such proposed assignment or sublease;

May 2, 2000
Page 17 of 26

<PAGE>   22
                  (b) refuse to consent to such proposed assignment or sublease,
         which refusal shall be on reasonable grounds; or

                  (c) if Tenant proposes to sublease all or part of the Premises
         for the entire remaining Term, Landlord may, at its option exercised by
         fifteen (15) days Notice to Tenant, elect to recapture such portion of
         the Premises as Tenant proposes to sublease and as of the fifteenth
         (15th) day after Landlord so notifies Tenant of its election to
         recapture, this Lease shall terminate as to the portion of the Premises
         recaptured and the Monthly Rent payable under this Lease shall be
         reduced in the same proportion that the floor area of that portion of
         the Premises so recaptured bears to the floor area of the Premises
         prior to such recapture.

                  Tenant agrees, by way of example and without limitation, that
         it shall not be unreasonable for Landlord to withhold its consent to a
         proposed assignment or subletting if any of the following situations
         exist or may exist:

                           (i) Landlord determines that the proposed assignee's
                  or sublessee's use of the Premises conflicts with Article V or
                  Article VI, presents an unacceptable risk, as determined by
                  Landlord, under Article VI, will overburden the services and
                  common area facilities of the Project, or conflicts with any
                  other provision under this Lease;

                           (ii) Landlord determines that the proposed assignee
                  or sublessee is not as financially responsible as Tenant as of
                  the date of Tenant's request for consent or as of the
                  effective date of such assignment or subletting;

                           (iii) Landlord determines that the proposed assignee
                  or sublessee lacks sufficient experience to conduct on the
                  Premises a business of a type and quality equal to that
                  conducted by Tenant;

                           (iv) Landlord determines that the proposed assignment
                  or subletting would breach a covenant, condition or
                  restriction in some other lease, financing agreement or other
                  agreement relating to the Project, the Building, the Premises
                  or this Lease; or

                           (v) An Event of Default has occurred and is
                  continuing at the time of Tenant's request for Landlord's
                  consent, or as of the effective date of such assignment or
                  subletting.

                  Tenant acknowledges that if Tenant has any exterior sign
         rights under this Lease, such rights are personal to Tenant and may not
         be assigned or transferred to any assignee of this Lease or sublessee
         of the Premises without Landlord's prior written consent, which consent
         may be withheld in Landlord's sole and absolute discretion.

         14.5. BONUS VALUE. Tenant agrees that fifty percent (50%) of any
amounts paid by the assignee or sublessee, however described, in excess of (i)
the Monthly Rent payable by Tenant hereunder (or, in the case of sublease of a
portion of the Premises, in excess of the Monthly Rent reasonably allocable to
such portion), plus (ii) Tenant's direct out-of-pocket costs which Tenant
certifies to Landlord have been paid to provide occupancy related services to
such assignee or sublessee of a nature commonly provided by landlords of similar
space, shall be the property of Landlord and such amounts shall be payable
directly to Landlord by the assignee or sublessee. At Landlord's request, a
written agreement shall be entered into by and among Tenant, Landlord and the
proposed assignee or sublessee confirming the requirements of this Section 14.5.

         14.6. CERTAIN TRANSFERS. The sale of all or substantially all of
Tenant's assets (other than bulk sales in the ordinary course of business), or,
if Tenant is a corporation, an unincorporated association, a limited liability
company, or a partnership, the transfer, assignment or hypothecation of any
stock or interest in such corporation, association, limited liability company,
or partnership in the aggregate in excess of twenty-five percent (25%) (except
for publicly traded shares of stock constituting a transfer of twenty-five
percent (25%) or more in the aggregate, so long as no change in the controlling
interests of Tenant occurs as a result thereof) shall be deemed an assignment
within the meaning and provisions of this Article XIV.

         14.7. LANDLORD'S FEE AND EXPENSES. If Tenant requests Landlord's
consent to an assignment or subletting by Tenant under this Lease, Tenant shall
pay to Landlord a fee of Five Hundred Dollars ($500.00) and all of Landlord's
out-of-pocket expenses reasonably incurred, including, but not limited to,
attorneys' fees reasonably incurred related to such assignment or subletting by
Tenant, whether or not the assignment or subletting is approved.

         14.8. TRANSFER OF THE PREMISES BY LANDLORD. Upon any conveyance of the
Premises and assignment by Landlord of this Lease, Landlord shall and is hereby
entirely released from all liability under any and all of its covenants and
obligations contained in or derived from this Lease occurring after the date of
such conveyance and assignment, and Tenant agrees to attorn to any entity
purchasing or otherwise acquiring the Premises.

                                   ARTICLE XV
                              DEFAULTS AND REMEDIES

         15.1. TENANT'S DEFAULT. At the option of Landlord, a default under this
Lease by Tenant shall exist if any of the following events shall occur (each is
called an "Event of Default"):
<PAGE>   23
                  (a) Tenant fails to pay the Rent payable hereunder, as and
         when due, for a period of three (3) days after Notice by Landlord;
         provided, however, the Notice given hereunder shall be in lieu of, and
         not in addition to, any notice required under Section 1161, et seq.,
         of the California Code of Civil Procedure;

                  (b) Tenant attempts to make or suffers to be made any
         transfer, assignment or subletting, except as provided in Article XIV
         hereof;

                  (c) Any of Tenant's rights under this Lease are sold or
         otherwise transferred by or under court order or legal process or
         otherwise or if any of the actions described in Section 15.2 are taken
         by or against Tenant or any Guarantor;

                  (d) The Premises are used for any purpose other than as
         permitted pursuant to Article V;

                  (e) Tenant vacates or abandons the Premises or fails to
         continuously and uninterruptedly conduct its business in the Premises;

                  (f) Any representation or warranty given by Tenant under or in
         connection with this Lease proves to be materially false or misleading;

                  (g) Tenant fails to timely comply with the provisions of
         Article VI ("Hazardous Materials"), Article XIV ("Assignment and
         Subletting"), Article XVI ("Subordination; Estoppel Certificate;
         Financials"), Section 21.5 ("Modifications for Mortgagees") or Section
         21.19 ("Authority");

                  (h) Tenant fails to observe, keep, perform or cure within
         fifteen (15) days after Notice by Landlord any of the other terms,
         covenants, agreements or conditions contained in this Lease or those
         set forth in any other agreements or rules or regulations which Tenant
         is obligated to observe or perform. In the event such default
         reasonably could not be cured or corrected within such fifteen-day
         period, but is reasonably susceptible to cure or correction, then
         Tenant shall not be in default hereunder if Tenant commences the cure
         or correction of such default within such fifteen-day period and
         diligently prosecutes the same to completion after commencing such cure
         or correction. The Notice required by this Section 15.1(h) shall be in
         lieu of, and not in addition to, any notice required under Section
         1161, et seq., of the California Code of Civil Procedure; or

                  (i) Tenant fails to provide to Landlord initial evidence of
         all insurance required of Tenant under this Lease, and the renewal
         thereof from time to time as required in this Lease.

                  Notices given under this Section 15.1 shall specify the
         alleged default and shall demand that Tenant perform the provisions of
         this Lease or pay the Rent that is in arrears, as the case may be,
         within the applicable period of time, or quit the Premises. No such
         Notice shall be deemed a forfeiture or a termination of this Lease
         unless Landlord so elects in the Notice.

         15.2. BANKRUPTCY OR INSOLVENCY. In no event shall this Lease be
assigned or assignable by operation of law and in no event shall this Lease be
an asset of Tenant in any receivership, bankruptcy, insolvency or reorganization
proceeding. In the event:

                  (a) A court makes or enters any decree or order adjudging
         Tenant to be insolvent, or approving as properly filed by or against
         Tenant a petition seeking reorganization or other arrangement of Tenant
         under any provisions of the Bankruptcy Code or any applicable state
         law, or directing the winding up or liquidation of Tenant and such
         decree or order shall have continued for a period of thirty (30) days;

                  (b) Tenant makes or suffers any transfer which constitutes a
         fraudulent or otherwise avoidable transfer under any provisions of the
         Bankruptcy Code or any applicable state law;

                  (c) Tenant assigns its assets for the benefit of its
         creditors; or

                  (d) The material part of the property of Tenant or any
         property essential to Tenant's business or of Tenant's interest in this
         Lease is sequestered, attached or executed upon, and Tenant fails to
         secure a return or release of such property within ten (10) days
         thereafter, or prior to sale pursuant to such sequestration,
         attachment or levy, whichever is earlier;

then this Lease shall, at Landlord's election, immediately terminate and be of
no further force or effect whatsoever, without the necessity for any further
action by Landlord, except that Tenant shall not be relieved of obligations
which have accrued prior to the date of such termination. Upon such termination,
the provisions herein relating to the expiration or earlier termination of this
Lease shall control and Tenant shall immediately surrender the Premises in the
condition required by the provisions of this Lease. Additionally, Landlord shall
be entitled to all relief, including recovery of damages from Tenant which may
from time to time be permitted, or recoverable, under the Bankruptcy Code or any
other applicable state laws.

         15.3. LANDLORD'S REMEDIES. Upon the occurrence of an Event of Default,
then, in addition to and without waiving any other rights and remedies available
to Landlord at law or in equity or otherwise provided in this Lease, Landlord
may, at its option, cumulatively or in the alternative, exercise the following
remedies:

                  (a) Landlord may terminate Tenant's right to possession of the
         Premises, in which case this Lease shall terminate and Tenant shall
         immediately surrender possession of the Premises to Landlord. No

May 2, 2000
Page 19 of 26
<PAGE>   24
         act by Landlord other than giving Notice to Tenant of Landlord's
         election to terminate Tenant's right to possession shall terminate this
         Lease. Acts of maintenance, efforts to re-let the Premises, or the
         appointment of a receiver on Landlord's initiative to protect
         Landlord's interest under this Lease shall not constitute a termination
         of Tenant's right to possession. Termination shall terminate Tenant's
         right to possession of the Premises but shall not relieve Tenant of any
         obligation under this Lease which has accrued prior to the date of such
         termination. Upon such termination, Landlord shall have the right to
         re-enter the Premises, and remove all persons and property, and
         Landlord shall also be entitled to recover from Tenant:

                           (i) The worth at the time of award of the unpaid
                  Monthly Rent and Additional 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 Monthly Rent and Additional Rent which would
                  have been earned after termination until the time of award
                  exceeds the amount of such rental loss that Tenant proves
                  could have been reasonably avoided;

                           (iii) The worth at the time of award of the amount by
                  which the unpaid Monthly Rent and Additional Rent for the
                  balance of the Term after the time of award exceeds the amount
                  of such rental loss that Tenant proves could be reasonably
                  avoided;

                           (iv) Any other amount necessary to compensate
                  Landlord for all the detriment proximately caused by Tenant's
                  failure to perform its obligations under this Lease or which
                  in the ordinary course of things would be likely to result
                  from Tenant's default, including, but not limited to, the cost
                  of recovering possession of the Premises, commissions and
                  other expenses of re-letting, including necessary repair,
                  demolition and renovation of the Premises to the condition
                  existing immediately prior to Tenant's occupancy, the
                  unamortized portion of any Tenant Improvements and brokerage
                  commissions funded by Landlord in connection with this Lease,
                  the cost of rectifying any damage to the Premises occasioned
                  by the act or omission of Tenant, reasonable attorneys' fees,
                  and any other reasonable costs; and

                           (v) At Landlord's election, all other amounts in
                  addition to or in lieu of the foregoing as may be permitted by
                  law.

                  As used in Sections (i) and (ii) above, the "worth at the time
         of award" shall be computed by allowing interest at the maximum legal
         rate permitted by law. As used in Section (iii) above, the "worth at
         the time of award" shall be computed by discounting the amount at the
         discount rate of the Federal Reserve Bank of San Francisco at the time
         of award plus one percent (1%).

                  (b) Landlord may elect not to terminate Tenant's right to
         possession of the Premises, in which event this Lease will continue in
         full force and effect as long as Landlord does not terminate Tenant's
         right to possession, and Landlord may continue to enforce all of its
         rights and remedies under this Lease, including the right to collect
         all Rent as it becomes due. In the event that Landlord elects to avail
         itself of the remedy provided by this Section 15.3(b), Landlord shall
         not unreasonably withhold its consent to an assignment or subletting of
         the Premises subject to the reasonable standards for Landlord's consent
         as are contained in this Lease. In addition, in the event Tenant has
         entered into a sublease which is valid under the terms of this Lease,
         Landlord may also, at its option, cause Tenant to assign to Landlord
         the interest of Tenant under said sublease, including, but not limited
         to, Tenant's right to payment of Rent as it becomes due. Landlord may
         elect to enter the Premises and re-let them, or any part of them, to
         third parties for Tenant's account. Tenant shall be liable immediately
         to Landlord for all costs Landlord incurs in re-letting the Premises,
         including, but not limited to, broker's commissions, expenses of
         cleaning and remodeling the Premises required by the re-letting,
         attorneys' fees and like costs. Re-letting can be for a period shorter
         or longer than the remaining Term of this Lease and for the entire
         Premises or any portion thereof. Tenant shall pay to Landlord the
         Monthly Rent and Additional Rent due under this Lease on the dates the
         Monthly Rent and such Additional Rent are due, less the Rent Landlord
         actually collects from any re-letting. Except as provided in the
         preceding sentence, if Landlord re-lets the Premises or any portion
         thereof, such re-letting shall not relieve Tenant of any obligation
         hereunder. Notwithstanding the above, no act by Landlord allowed by
         this Section 15.3(b) shall terminate this Lease unless Landlord
         notifies Tenant in writing that Landlord elects to terminate this
         Lease.

         15.4. NO SURRENDER. Tenant waives any right of redemption or relief
from forfeiture under California Code of Civil Procedure Sections 1174 and 1179,
or under any other present or future law in the event Tenant is evicted or
Landlord takes possession of the Premises by reason of an Event of Default. No
act or thing done by Landlord or Landlord's Agents during the Term shall be
deemed an acceptance of a surrender of the Premises, and no agreement to accept
a surrender shall be valid unless in writing and signed by Landlord. No employee
of Landlord or of Landlord's Agents shall have any power to accept the keys to
the Premises prior to the termination of this Lease, and the delivery of the
keys to any employee shall not operate as a termination of this Lease or a
surrender of the Premises.

         15.5. INTEREST ON LATE PAYMENTS. Any Rent due under this Lease that is
not paid to Landlord within three (3) days of the date when due shall commence
to bear interest at the Applicable Rate until fully paid. Neither the accrual
nor the payment of interest shall cure any default by Tenant under this Lease.

         15.6. ATTORNEYS' AND OTHER FEES. All sums reasonably incurred by
Landlord in connection with an Event of Default or holding over of possession by
Tenant after the expiration or termination of this Lease, including,

May 2, 2000
Page 20 of 26

<PAGE>   25
but not limited to, all costs, expenses and actual accountants', appraisers',
attorneys' and other professional fees, and any collection agency or other
collection charges, shall be due and payable by Tenant to Landlord on demand,
and shall bear interest at the Applicable Rate from the date of such demand
until paid by Tenant. In addition, in the event that any action shall be
instituted by either of the parties hereto for the enforcement of any of its
rights in and under this Lease, the party in whose favor judgment shall be
rendered shall be entitled to recover from the other party all expenses
reasonably incurred by the prevailing party in such action, including actual
costs and reasonable attorneys' fees.

         15.7. LANDLORD'S DEFAULT. Landlord shall not be deemed to be in default
in the performance of any obligation required to be performed by it hereunder
unless and until it has failed to perform such obligation within fifteen (15)
days after receipt of Notice by Tenant to Landlord (and the Mortgagees who have
provided Tenant with notice) specifying the nature of such default; provided,
however, that if the nature of Landlord's obligation is such that more than
fifteen (15) days are required for its performance, then Landlord shall not be
deemed to be in default if it shall commence such performance within such
fifteen (15) day period and thereafter diligently prosecutes the same to
completion.

         15.8. LIMITATION OF LANDLORD'S LIABILITY. The obligations of Landlord
do not constitute the personal obligations of the individual partners, trustees,
directors, officers or shareholders of Landlord or those of its constituent
partners. If Landlord shall fail to perform any covenant, term, or condition of
this Lease upon Landlord's part to be performed, Tenant shall be required to
deliver to Landlord Notice of the same. If, as a consequence of such default,
Tenant shall recover a money judgment against Landlord, such judgment shall be
satisfied only out of the proceeds of sale received upon execution of such
judgment and levied thereon against the right, title and interest of Landlord in
the Building and out of rent or other income from such property receivable by
Landlord or out of consideration received by Landlord from the sale or other
disposition of all or any part of Landlord's right, title or interest in the
Building, and no action for any deficiency may be sought or obtained by Tenant.

         15.9. MORTGAGEE PROTECTION. Upon any default on the part of Landlord,
Tenant will give notice by registered or certified mail to any Mortgagee who has
provided Tenant with notice of its interest together with an address for
receiving notice, and shall offer such Mortgagee a reasonable opportunity to
cure the default (which in no event shall be less than sixty [60] days),
including time to obtain possession of the Premises by power of sale or a
judicial foreclosure, if such should prove necessary, to effect a cure. Tenant
agrees that each of the Mortgagees to whom this Lease has been assigned by
Landlord is an express third party beneficiary hereof. Tenant shall not make any
prepayment of Monthly Rent more than one (1) month in advance without the prior
written consent of such Mortgagee. Tenant waives any right under California
Civil Code Section 1950.5 or any other present or future law to the collection
of any deposit from such Mortgagee or any purchaser at a foreclosure sale of
such Mortgagee's interest unless such Mortgagee or such purchaser shall have
actually received and not refunded the deposit. Tenant agrees to make all
payments under this Lease to the Mortgagee with the most senior encumbrance upon
receiving a direction, in writing, to pay said amounts to such Mortgagee. Tenant
shall comply with such written direction to pay without determining whether an
event of default exists under such Mortgagee's loan to Landlord.

         15.10. LANDLORD'S RIGHT TO PERFORM. If Tenant shall at any time fail to
make any payment or perform any other act on its part to be made or performed
under this Lease, Landlord may (but shall not be obligated to), at Tenant's
expense, and without waiving or releasing Tenant from any obligation of Tenant
under this Lease, make such payment or perform such other act to the extent
Landlord may deem desirable, and in connection therewith, pay expenses and
employ counsel. All sums paid by Landlord and all penalties, interest and costs,
including, but not limited to, collection costs and attorneys' fees reasonably
incurred in connection therewith, shall be due and payable by Tenant to
Landlord, as an item of Additional Rent, on demand by Landlord, together with
interest thereon at the Applicable Rate from the date of such demand until paid
by Tenant.

         15.11. LIMITATION OF ACTIONS AGAINST TENANT AND LANDLORD. [SEE RIDER]

         15.12. WAIVER OF JURY TRIAL. To the full extent permitted by law,
Tenant and Landlord hereby waive the right to trial by jury in any action,
proceeding or counterclaim brought by Tenant or Landlord, respectively, on any
matter whatsoever arising out of or in any way connected with this Lease, the
relationship of Landlord and Tenant, Tenant's use or occupancy of the Premises
and/or any claim of injury or damage.

                                   ARTICLE XVI
                 SUBORDINATION; ESTOPPEL CERTIFICATE; FINANCIALS

         16.1. SUBORDINATION, ATTORNMENT AND NON-DISTURBANCE. Without the
necessity of any additional document being executed by Tenant for the purpose of
effecting a subordination, and at the election of Landlord or any Mortgagee or
any ground lessor with respect to the land of which the Premises are a part,
this Lease shall be subject and subordinate at all times to (i) all ground
leases or underlying leases which may now exist or hereafter be executed
affecting the Building, and (ii) the lien of any Mortgage which may now exist or
hereafter be executed in any amount for which the Project, the Building, ground
leases or underlying leases, or Landlord's interest or estate in any of said
items is specified as security. Landlord or any such Mortgagee or ground lessor
shall have the right, at its election, to subordinate or cause to be
subordinated any such ground leases or underlying leases or any such liens to
this Lease. No subordination shall permit material interference with Tenant's
rights hereunder, and any ground lessor or Mortgagee shall recognize Tenant and
its permitted successors and assigns as the tenant of the Premises and shall not
disturb Tenant's right to quiet possession of the Premises during the Term so
long as no Event of Default has occurred and is continuing under this Lease. If
Landlord's interest in the Premises is acquired by any ground lessor or
Mortgagee, or in the event proceedings are brought for the foreclosure of, or in
the event of exercise of the power of sale under, any Mortgage made by Landlord
covering the Premises or any part thereof, or in the event a conveyance in lieu
of foreclosure is made for any reason, Tenant shall, notwithstanding any

May 2, 2000
Page 21 of 26

<PAGE>   26
subordination and upon the request of such successor in interest to Landlord,
attorn to and become the Tenant of the successor in interest to Landlord and
recognize such successor in interest as the Landlord under this Lease. Although
this Section 16.1 is self-executing, Tenant covenants and agrees to execute and
deliver, upon demand by Landlord and in the form requested by Landlord, or any
Mortgagee or ground lessor, any additional documents evidencing the priority or
subordination of this Lease with respect to any such ground leases or underlying
leases or the lien of any such Mortgage, or evidencing the attornment of Tenant
to any successor in interest to Landlord as herein provided. Tenant's failure to
timely execute and deliver such additional documents shall, at Landlord's
option, constitute an Event of Default hereunder.

         16.2. ESTOPPEL CERTIFICATE. Tenant shall within ten (10) days following
written request by Landlord, execute and deliver to Landlord any documents,
including estoppel certificates, in a form required by Landlord (i) certifying
that this Lease is unmodified and in full force and effect or, if modified,
attaching a copy of such modification and certifying that this Lease, as so
modified, is in full force and effect and the date to which the Rent and other
charges are paid in advance, if any, (ii) acknowledging that there are not, to
Tenant's knowledge, any uncured defaults on the part of the Landlord or stating
the nature of any uncured defaults, (iii) evidencing the status of this Lease as
may be required by a Mortgagee or a purchaser of the Premises, (iv) certifying
the current Monthly Rent amount and the amount and form of Security Deposit on
deposit with Landlord, and (v) certifying to such other information as Landlord,
Landlord's Agents, Mortgagees and prospective purchasers may reasonably request,
including, but not limited to, any requested information regarding Hazardous
Materials. Tenant's failure to deliver an estoppel certificate within ten (10)
days after delivery of Landlord's written request therefor shall constitute an
Event of Default hereunder,

         16.3. FINANCIAL INFORMATION. Tenant shall deliver to Landlord, prior
to the execution of this Lease, and within ten (10) days following written
request therefor by Landlord at any time during the Term, Tenant's current
financial statements, and Tenant's financial statements for the two (2) years
prior to the current fiscal financial statement's year, certified to be true,
accurate and complete by an authorized officer of Tenant, including a balance
sheet and profit and loss statement for the most recent prior year
(collectively, the "Statements"), which Statements shall accurately and
completely reflect the financial condition of Tenant. Landlord agrees that it
will keep the Statements confidential, except that Landlord shall have the right
to deliver the same to any proposed purchaser of the Premises, the Project or
any portion thereof, and to the Mortgagees of Landlord or such purchaser. Tenant
acknowledges that Landlord is relying on the Statements in its determination to
enter into this Lease, and Tenant represents to Landlord, which representation
shall be deemed made on the date of this Lease and again on the Commencement
Date, that no material change in the financial condition of Tenant, as reflected
in the Statements, has occurred since the date Tenant delivered the Statements
to Landlord. If any material change in Tenant's financial condition, as
reflected in the Statements, occurs prior to the date of this Lease or prior to
the Commencement Date, as the case may be, or if Tenant fails to inform Landlord
of any such material change, Landlord shall have the right, in addition to any
other rights and remedies of Landlord, to terminate this Lease by notice to
Tenant given within thirty (30) days after Landlord learns of such material
change.

                                  ARTICLE XVII
                               SIGNS AND GRAPHICS

         Landlord shall, at Tenant's expense, install a suite identification
plaque next to the door to the entrance to the Premises and install directory
strips in the lobby directory identifying Tenant's trade name. Tenant shall have
no right to maintain identification signs in any other location in, on or about
the Premises and shall not display or erect any other signs, displays or other
advertising materials that are visible from the exterior of the Building, except
as otherwise expressly permitted by Landlord in writing. If any exterior sign
rights are granted to Tenant by Landlord in connection with this Lease, (i) the
size, design, color and other physical aspects of such specially permitted signs
shall be subject to Landlord's written approval prior to installation, which
approval may be withheld in Landlord's discretion, any Restrictions and any
applicable municipal or other governmental permits and approvals, (ii) all such
signs and graphics shall conform to the sign criteria established by Landlord
from time to time in writing, (iii) upon notice from Landlord, Tenant shall
reimburse Landlord for Landlord's costs of installing support bracing for such
exterior signs, (iv) the cost of all such signs and graphics, including the
installation, maintenance and removal thereof, shall be at Tenant's sole cost
and expense, and (v) such sign rights shall not be assignable to any lease
assignee, subtenant or other party and shall automatically terminate on the
assignment by Tenant of its interest in this Lease (whether consented to by
Landlord or not) or the subleasing of a substantial portion of the Premises by
Tenant (whether consented to by Landlord or not). If Tenant fails to maintain
any permitted exterior signs, or if Tenant fails to remove same upon termination
of this Lease and repair any damage caused by such removal (including, but not
limited to, repainting the affected area, if required by Landlord), Landlord may
do so at Tenant's expense. All sums reasonably disbursed, deposited or incurred
by Landlord in connection with such removal, including, but not limited to, all
costs, expenses and actual attorneys' fees, shall be due and payable by Tenant
to Landlord on demand by Landlord, together with interest thereon at the
Applicable Rate from the date of such demand until paid by Tenant.

                                  ARTICLE XVIII
                                 QUIET ENJOYMENT

         Landlord covenants that Tenant, upon performing the terms, conditions
and covenants of this Lease, shall have quiet and peaceful possession of the
Premises as against any person claiming the same by, through or under Landlord.

May 2, 2000
Page 22 of 26

<PAGE>   27
                                   ARTICLE XIX
                             SURRENDER; HOLDING OVER

         19.1. SURRENDER OF THE PREMISES. Upon the expiration or earlier
termination of this Lease, Tenant shall surrender the Premises to Landlord in
its condition existing as of the Commencement Date, normal wear and tear and
acts of God excepted, with all interior walls in good repair, the HVAC
equipment, plumbing, electrical and other mechanical installations in good
operating order and all floors cleaned, all to the reasonable satisfaction of
Landlord. Tenant shall remove from the Premises all of Tenant's Alterations
which Landlord requires Tenant to remove pursuant to Section 8.1 and all
Tenant's Personal Property and all telephone, data transmission, fiber-optic and
other telecommunications cabling and related facilities installed by Tenant in
the Premises and Building, and shall repair any damage and perform any
restoration work caused by such removal. If Tenant fails to remove such
Alterations and Tenant's Personal Property which Tenant is authorized and
obligated to remove pursuant to the above, and such failure continues after the
termination of this Lease, Landlord may retain such property and all rights of
Tenant with respect to it shall cease, or Landlord may place all or any portion
of such property in public storage for Tenant's account. Tenant shall pay to
Landlord, upon demand, the costs of removal of any such Alterations and Tenant's
Personal Property and storage and transportation costs of same, and the cost of
repairing and restoring the Premises, together with attorneys' fees and interest
on said amounts at the Applicable Rate from the date of expenditure by Landlord.
If the Premises are not so surrendered at the termination of this Lease, Tenant
hereby agrees to indemnify Landlord and Landlord's Agents against all loss or
liability resulting from any delay by Tenant in so surrendering the Premises,
including, but not limited to, any claims made by any succeeding tenant, losses
to Landlord due to lost opportunities to lease to succeeding tenants, and actual
attorneys' fees and costs. Landlord may withhold all or any portion of Tenant's
Security Deposit pending disposition and accounting of expenses Landlord will
incur as a result of Tenant's failure to remove the items specified in this
Section 19. 1.

         19.2. HOLDING OVER. If Tenant remains in possession of all or any part
of the Premises after the expiration of the Term with the prior written consent
of Landlord, such possession shall constitute a month-to-month tenancy only and
shall not constitute a renewal or extension for any further term. If Tenant
remains in possession of all or any part of the Premises after the expiration of
the Term without the prior written consent of Landlord, such possession shall
constitute a tenancy at sufferance. In either of such events, Monthly Rent shall
be increased to an amount equal to one hundred fifty percent (150%) of the
Monthly Rent payable during the last month of the Term, and any other sums due
hereunder shall be payable in the amounts and at the times specified in this
Lease. Any such tenancy shall be subject to every other term, condition, and
covenant contained in this Lease.

                                   ARTICLE XX
                              INTENTIONALLY DELETED

                                   ARTICLE XXI
                    MISCELLANEOUS AND INTERPRETIVE PROVISIONS

         21.1. BROKER. Landlord and Tenant each warrant and represent to the
other that neither has had any dealings with any real estate broker, agent or
finder in connection with the negotiation of this Lease or the introduction of
the parties to this transaction, except for the Broker (whose commission shall
be paid by Landlord), and that it knows of no other real estate broker, agent or
finder who is or might be entitled to a commission or fee in connection with
this Lease. In the event of any additional claims for brokers' or finders' fees
with respect to this Lease, Tenant shall indemnify, hold harmless, protect and
defend Landlord from and against such claims if they shall be based upon any
statement or representation or agreement made by Tenant, and Landlord shall
indemnify, hold harmless, protect and defend Tenant from and against such claims
if they shall be based upon any statement, representation or agreement made by
Landlord.

         21.2. EXAMINATION OF LEASE. Submission of this Lease for examination or
signature by Tenant does not create a reservation of or option to lease. This
Lease shall become effective and binding only upon full execution of this Lease
by both Landlord and Tenant.

         21.3. NO RECORDING. Tenant shall not record this Lease or any
memorandum of this Lease without Landlord's prior written consent, but if
Landlord so requests, Tenant agrees to execute, have acknowledged and deliver a
memorandum of this Lease in recordable form which Landlord thereafter may file
for record.

         21.4. QUITCLAIM. Upon any termination of this Lease, Tenant shall, at
Landlord's request, execute, have acknowledged and deliver to Landlord an
instrument in writing releasing and quit-claiming to Landlord all right, title
and interest of Tenant in and to the Premises by reason of this Lease or
otherwise.

         21.5. MODIFICATIONS FOR MORTGAGEES. If in connection with obtaining
financing for the Premises or any portion thereof, Landlord's Mortgagees shall
request reasonable modifications to this Lease as a condition to such financing,
Tenant shall not unreasonably withhold, delay or defer its consent thereto,
provided such modifications do not adversely affect Tenant's rights hereunder.
Tenant's failure to so consent shall constitute an Event of Default under this
Lease.

         21.6. NOTICE. Any Notice required or desired to be given under this
Lease shall be in writing and shall be addressed to the address of the party to
be served. The addresses of Landlord and Tenant are as set forth in Items 1 and
3, respectively, of the Basic Lease Provisions, except that (a) prior to the
Commencement Date, the address for Notices to Tenant shall be as set forth
opposite Tenant's signature on this Lease, and (b) from and after the
Commencement Date, notwithstanding the addresses for Tenant set forth in Item 3
of the Basic Lease Provisions, all Notices regarding the operation and
maintenance of the Project shall be delivered to Tenant at the Premises. Each

May 2, 2000
Page 23 of 26
<PAGE>   28
such Notice shall be deemed effective and given (i) upon receipt, if personally
delivered (which shall include delivery by courier or overnight delivery
service), (ii) upon being telephonically confirmed as transmitted, if sent by
telegram, telex or telecopy, (iii) two (2) business days after deposit in the
United States mail in the county in which the Premises are located, certified
and postage prepaid, properly addressed to the party to be served, or (iv) upon
receipt if sent in any other way. Any party hereto may from time to time, by
Notice to the other in accordance with this Section 21.6, designate a different
address than that set forth above for the purposes of Notice.

         21.7. CAPTIONS. The captions and headings used in this Lease are for
the purpose of convenience only and shall not be construed to limit or extend
the meaning of any part of this Lease.

         21.8. EXECUTED COPY. Any fully executed copy of this Lease shall be
deemed an original for all purposes.

         21.9. TIME. Time is of the essence for the performance of each term,
condition and covenant of this Lease.

         21.10. SEVERABILITY. If any one or more of the provisions contained
herein shall for any reason be held to be invalid, illegal or unenforceable in
any respect, such invalidity, illegality, or un-enforceability shall not affect
any other provision of this Lease, but this Lease shall be construed as if such
invalid, illegal or unenforceable provision had not been contained herein.

         21.11. SURVIVAL. All covenants and indemnities set forth herein which
contemplate the payment of sums, or the performance by Tenant after the Term or
following an Event of Default, including specifically, but not limited to, the
covenants and indemnities set forth in Section 5.3, Article VI, Article VII,
Section 8.1, Section 9.2, Article XI, Article XV, and Article XIX, and all
representations and warranties of Tenant shall survive the expiration or sooner
termination of this Lease.

         21.12. CHOICE OF LAW. This Lease shall be construed and enforced in
accordance with the laws of the State of California. The language in all parts
of this Lease shall in all cases be construed as a whole according to its fair
meaning and not strictly for or against either Landlord or Tenant.

         21.13. GENDER; SINGULAR, PLURAL. When the context of this Lease
requires, the neuter gender includes the masculine, the feminine, a partnership
or corporation or joint venture, the singular includes the plural and the plural
includes the singular.

         21.14. NON-AGENCY. It is not the intention of Landlord or Tenant to
create hereby a relationship of master-servant or principal-agent, and under no
circumstance shall Tenant herein be considered the agent of Landlord, it being
the sole purpose and intent of the parties hereto to create a relationship of
landlord and tenant.

         21.15. SUCCESSORS. The terms, covenants, conditions and agreements
contained in this Lease shall, subject to the provisions as to assignment,
subletting, and bankruptcy contained herein and any other provisions restricting
successors or assigns, apply to and bind the heirs, successors, legal
representatives and assigns of the parties hereto.

         21.16. WAIVER; REMEDIES CUMULATIVE. The waiver by either party of any
term, covenant, agreement or condition herein contained shall not be deemed to
be a waiver of any subsequent breach of the same or any other term, covenant,
agreement or condition herein contained, nor shall any custom or practice which
may grow up between the parties in the administration of this Lease be construed
to waive or to lessen the right of Landlord to insist upon the performance by
Tenant in strict accordance with all of the provisions of this Lease. The
subsequent acceptance of Rent hereunder by Landlord shall not be deemed to be a
waiver of any preceding breach by Tenant of any provisions, covenant, agreement
or condition of this Lease, other than the failure of Tenant to pay the
particular Rent payment so accepted, regardless of Landlord's knowledge of such
preceding breach at the time of acceptance of such Rent payment. Landlord's
acceptance of any check, letter or payment shall in no event be deemed an accord
and satisfaction, and Landlord shall accept the check, letter or payment without
prejudice to Landlord's right to recover the balance of the Rent or pursue any
other remedy available to it. The rights and remedies of either party under this
Lease shall be cumulative and in addition to any and all other rights and
remedies which either party has or may have.

         21.17. UNAVOIDABLE DELAY. Except for the monetary obligations of Tenant
under this Lease, neither party shall be chargeable with, liable for, or
responsible to the other for anything or in any amount for any Unavoidable Delay
and any Unavoidable Delay shall not be deemed a breach of or default in the
performance of this Lease, it being specifically agreed that any time limit
provision contained in this Lease (other than the scheduled expiration of the
Term) shall be extended for the same period of time lost by Unavoidable Delay.

         21.18. ENTIRE AGREEMENT. This Lease is the entire agreement between the
parties, and supersedes any prior agreements, representations, negotiations or
correspondence between the parties except as expressed herein. Except as
otherwise provided herein, no subsequent change or addition to this Lease shall
be binding unless in writing and signed by the parties hereto.

         21.19. AUTHORITY. If Tenant is a corporation, limited liability company
or partnership, each individual executing this Lease on behalf of the
corporation, limited liability company or partnership, as the case may be,
represents and warrants that he is duly authorized to execute and deliver this
Lease on behalf of said entity in accordance with its corporate bylaws,
operating agreement, statement of partnership or certificate of limited
partnership, as the case may be, and that this Lease is binding upon said entity
in accordance with its terms. If

May 2, 2000
Page 24 of 26

<PAGE>   29
Tenant is a corporation, Tenant shall, if requested by Landlord, within thirty
(30) days after execution of this Lease and prior to entering into possession of
the Premises, deliver to Landlord a certified copy of a resolution of the Board
of Directors of the corporation or certificate of the Secretary of the
corporation, authorizing, ratifying or confirming the execution of this Lease.
If Tenant is a limited liability company or partnership, Tenant shall, if
requested by Landlord, within thirty (30) days after the execution of this Lease
and prior to entering into possession of the Premises, deliver to Landlord a
certified copy of its operating agreement or partnership agreement, as the case
may be, authorizing such execution.

         21.20. GUARANTY. As a condition to the execution of this Lease by
Landlord, the obligations, covenants and performance of the Tenant as herein
provided shall be guaranteed in writing by the Guarantor listed in Item 14 of
the Basic Lease Provisions, if any, on a form of guarantee provided by Landlord.

         21.21. EXHIBITS; REFERENCES. All exhibits, amendments, riders and
addenda attached to this Lease are hereby incorporated into and made a part of
this Lease and Tenant acknowledges disclosure of all information therein. In the
event of variation or discrepancy, the duplicate original hereof (including
exhibits, amendments, riders and addenda, if any, specified above) held by
Landlord shall control. All references in this Lease to Articles, Sections,
Exhibits, Riders and clauses are made, respectively, to Articles, Sections,
Exhibits, Riders and clauses of this Lease, unless otherwise specified.

         21.22. BASIC LEASE PROVISIONS. The Basic Lease Provisions at the
beginning of this Lease are intended to provide general information only. In the
event of any inconsistency between the Basic Lease Provisions and the specific
provisions of this Lease, the specific provisions of this Lease shall prevail.

         21.23. NO MERGER. The voluntary or other surrender of this Lease by
Tenant, or a mutual cancellation thereof, or a termination by Landlord, shall
not work a merger, and shall, at the option of Landlord, terminate all or any
existing sub-tenancies or may, at the option of Landlord, operate as an
assignment to Landlord of any or all such sub-tenancies.

         21.24. JOINT AND SEVERAL OBLIGATIONS. If more than one person or entity
is Tenant, the obligations imposed on each such person or entity shall be joint
and several.

         21.25. NO LIGHT OR AIR EASEMENT. Any diminution or shutting off of
light or air by any structure which may be erected on lands adjacent to the
Building shall in no way affect this Lease, abate Rent or otherwise impose any
liability on Landlord. This Lease does not confer any right with regard to the
subsurface below the ground level of the Building.

         21.26. LEASE SUBJECT TO MATTERS OF RECORD. Tenant acknowledges that
this Lease is subject to all covenants, conditions, restrictions, liens and
encumbrances of record ("Matters of Record"). To the extent applicable, Tenant
shall be bound by all such Matters of Record.

         21.27 HAZARDOUS MATERIALS DISCLOSURE. Tenant acknowledges that the
property on which the Building is located has previously been used for
agricultural purposes. Landlord is not aware of any other uses nor is Landlord
aware of any releases of Hazardous Materials on or beneath the property - with
the following exceptions:

                  (a) Over the years, various agricultural chemicals have been
         applied to the property. Residues of these chemicals may exist in the
         upper levels of the soil. Landlord anticipates that any such residues
         will decompose over time. The grading and development of the property
         will also reduce the potential for exposure. The risks associated with
         this previous agricultural chemical use on the property appear to be no
         greater than those associated with other similarly used properties in
         the area.

                  (b) The El Toro Marine Corps Air Station, which is located
         approximately one mile northeast of the Building, has had several
         releases of Hazardous Materials, many of which involved underground
         storage tanks. Contaminated ground water emanating from the Air Station
         may have migrated beneath portions of the property.

         21.28 TENANT'S AND GUARANTOR'S FINANCIAL CONDITION. Tenant represents
to Landlord that any and all applications and financial statements provided to
Landlord regarding Tenant and any Guarantor are true, accurate and complete in
all material respects, and do not fail to omit or misstate any material aspect
of the financial condition of Tenant or any Guarantor. Tenant acknowledges that
the foregoing representation is a material inducement to Landlord in entering
into this Lease and accepting Tenant as a tenant of the Project. Any breach of
the foregoing representation shall constitute an incurable "Event of Default"
under Section 15.1 of this Lease.

[SIGNATURES CONTINUED ON NEXT PAGE]

May 2, 2000
Page 25 of 26

<PAGE>   30
         THIS LEASE is effective as of the date the last signatory necessary to
execute this Lease shall have executed this Lease.

"LANDLORD"   PAC COURT ASSOCIATES, L.P., a California limited partnership

             By:    Banyan Pacific, LLC, a California limited liability company,
                    general partner

                    By:  Banyan Realty Group, LLC, a California
                         limited liability company, managing member

                         By: /s/ George W. Ceithaml
                             George W. Ceithaml, Trustee of the
                             Ceithaml Living Trust #2 dated April 15,
                             1989, managing member

ADDRESS FOR NOTICES PRIOR TO COMMENCEMENT DATE:

"TENANT"     INTEGRATED INFORMATION SYSTEMS, INC., a Delaware corporation

             By: /s/ Jeffrey Frankel
                 Its: Jeffrey Frankel, Vice President and General Counsel

May 2, 2000
Page 26 of 26

<PAGE>   31
                                   EXHIBIT "A"
                         GRAPHIC DEPICTION OF PREMISES

                          [MAP OF THIRD FLOOR GRAPHIC]

<PAGE>   32
                                  EXHIBIT "B"
                               PROJECT SITE PLAN

                          [MAP OF PACIFICA COURT SITE]

<PAGE>   33
                                   EXHIBIT "C"
                                   WORK LETTER

         This Exhibit is attached to and made a part of that certain Office
Lease dated May 16, 2000, by and between PAC COURT ASSOCIATES, L.P., a
California limited partnership, as "Landlord", and INTEGRATED INFORMATION
SYSTEMS, INC., a Delaware corporation, as "Tenant", for the Premises known as
114 Pacifica, Suite 300, Irvine, California.

1.       APPLICATION OF EXHIBIT

         Capitalized terms used and not otherwise defined herein shall have the
same definitions as set forth in the Lease. The provisions of this Work Letter
shall apply to the planning and completion of leasehold improvements requested
by Tenant (the "Tenant Improvements") for the fitting out of the initial
Premises, as more fully set forth herein.

2.       LANDLORD AND TENANT PRE-CONSTRUCTION OBLIGATIONS

         (a) PRELIMINARY SPACE PLAN. Prior to full execution of this Lease by
both Landlord and Tenant, Landlord's Space Planner shall have completed and
Tenant shall have approved a Preliminary Space Plan for Tenant Improvements (the
"Preliminary Space Plan"), also known as a "test fit plan" which shall depict
the general design of the Premises including location and relative sizes of
offices and other enclosed rooms, open work areas as well as entry/exit
locations. Execution of this Lease confirms Tenant Approval of said Preliminary
Space Plan.

         (b) PRICING PLAN. Within three (3) days following Tenant approval of
the Preliminary Space Plan, Landlord's Space Planner shall complete a pricing
plan ("Pricing Plan") for the Tenant Improvements which shall include, without
limitation, drawings showing the locations of doors, partitioning, electrical
outlets, lighting, plumbing fixtures, floor loads and other unusual
requirements, and a list of all specialized installations and improvements and
upgrade specifications determined by Tenant as required for its use of the
Premises and which differ from the Building Standard Tenant Improvement
Specifications then in effect. Tenant agrees to and shall promptly and fully
cooperate with Landlord's Space Planner and shall supply all information
Landlord's Space Planner deems necessary for the preparation of the Pricing
Plan. Tenant acknowledges that the Pricing Plan shall be prepared by Landlord's
Space Planner after consultation and cooperation between Tenant and Landlord's
Space Planner regarding the proposed Tenant Improvements and Tenant's
requirements. Landlord and Landlord's Space Planner shall be entitled, in all
respects, to rely upon all information supplied by Tenant regarding the Tenant
Improvements. Tenant shall approve the Pricing Plan within two (2) days
following delivery thereof to Tenant by Landlord. The costs associated with
preparation of the Pricing Plan shall be paid in the manner set forth in
Sections 5 and 6 of the Work Letter.

         (c) COST APPROVAL - PRICING PLAN. Within five (5) days following
Tenant's approval of the Pricing Plan, Landlord shall submit to Tenant a
preliminary written estimate ("Preliminary Estimate") of such Tenant Improvement
Costs as hereinafter defined (including the amount to be paid for all plans
referenced in this Exhibit and other non-construction costs). All costing shall
be based on the Building Standard Tenant Improvement Specifications then in
effect, unless otherwise noted. Tenant shall be obligated to bear the excess of
the Tenant Improvement Costs in excess of the amount of the Tenant Improvement
Allowance (as hereinafter defined), provided, however, that Tenant shall have
two (2) days after receipt of the Preliminary Estimate in which to (a) elect to
terminate this Lease by written notice to Landlord, or (b) submit to Landlord's
Space Planner such revisions and modifications of the Pricing Plan, satisfactory
in all respects to Landlord, as will reduce the estimated costs to an amount
acceptable to Tenant. Failure to notify Landlord of Tenant's election to either
cancel this Lease or revise the Pricing Plan shall be deemed Tenant's acceptance
of the Preliminary Estimate and Tenant's agreement to pay the excess of the
Tenant Improvement Costs over the Tenant Improvement Allowance.

         (d) WORKING DRAWINGS. Within three (3) weeks following Tenant's
approval of the Preliminary Estimate (whether as originally calculated or
following Tenant's revision of the Pricing Plan), Landlord's Space Planner shall
complete working drawings (the "Working Drawings") for the Tenant Improvements
based upon the approved Pricing Plan. The Working Drawings shall include
architectural, mechanical and electrical construction drawings for the Tenant
Improvements based on the Pricing Plan. Notwithstanding the Pricing Plan, in all
cases the Working Drawings (i) shall be subject to Landlord's final approval,
which approval shall not be unreasonably withheld, (ii) shall not be in conflict
with building codes for the City or County or with insurance requirements, and
(iii) shall be in a form satisfactory to appropriate governmental authorities
responsible for issuing permits and licenses required for construction. The
costs associated with preparation of the Working Drawings shall be paid in the
manner set forth in Sections 5 and 6 of this Work Letter.

May 2, 2000
Page l of 5
<PAGE>   34
         (e) APPROVAL OF WORKING DRAWINGS. Landlord or Landlord's Space Planner
shall submit the Working Drawings to Tenant for Tenant's review, and Tenant
shall notify Landlord and Landlord's Space Planner within two (2) days after
delivery thereof of any requested revisions. Within three (3) days after receipt
of Tenant's notice, Landlord's Space Planner shall draft all revisions to the
Working Drawings that are approved by Landlord and shall submit two (2) copies
thereof to Tenant for its final review and approval, which approval shall be
given within two (2) days thereafter. Concurrently with the above review and
approval process, Landlord may submit all plans and specifications to City and
other applicable governmental agencies in an attempt to expedite City approval
and issuance of all necessary permits and licenses to construct the Tenant
Improvements as shown on the Working Drawings. Any changes which are required by
City or other governmental agencies shall be immediately submitted to Landlord
for Landlord's review and reasonable approval, and Landlord shall promptly
notify Tenant of such changes.

         (f) SCHEDULE OF CRITICAL DATES. Set forth below is a schedule of
certain critical dates relating to Landlord's and Tenant's respective
obligations for the design, approval, cost and construction of the Tenant
Improvements. Such dates and the respective obligations of Landlord and Tenant
are more fully described elsewhere in this Work Letter. The purpose of the
following schedule is to provide a reference for Landlord and Tenant and to make
certain the Final Approval Date occurs as set forth herein. Following the Final
Approval Date, Tenant shall be deemed to have released Landlord to commence
construction of the Tenant Improvements as set forth in Section 4 below.

<TABLE>
<CAPTION>
          REFERENCE                         DATE DUE                                           RESPONSIBLE
                                                                                                  PARTY

<S>                                         <C>                                                <C>
A.     "Preliminary Space Plan              Prior to full execution of the Lease                Tenant and
       Completion"                                                                               Landlord

B.     "Pricing Plan Completion"            Three (3) days after approval of                     Landlord
                                            Preliminary Space Plan

C.     "Approval of Pricing Plan"           Two (2) days after submission to Tenant of            Tenant
                                            Pricing Plan

D.     Preliminary Cost                     Five (5) days after Tenant approval of               Landlord
                                            Pricing Plan

E.     Approval of Preliminary              Two (2) days after submission to Tenant of            Tenant
       Cost                                 Preliminary Cost

F.     "Working Drawings                    Three (3) weeks after Tenant approval of             Landlord
       Completion"                          Preliminary Cost to complete Tenant
                                            Improvements

G.     "Approval of Working                 Two (2) days after submission to Tenant of             Tenant
          Drawings"                         Working Drawings

H.     "Working Drawing                     Three (3) days after Landlord's receipt of            Landlord
       Revision Completion" (if             Tenant revisions to Working Drawings
       applicable)

I.     "Final Approval Date"                Two (2) days after submission to Tenant of             Tenant
                                            Working Drawings Revision or upon
                                            Tenant approval of Working Drawings.

J.     Final Cost Estimate                  Five (5) days from receipt of Tenant                  Landlord
                                            Approval of Working Drawings

K.     Approval of Final Cost               Two (2) days after submission to Tenant of             Tenant
       Estimate                             Final Cost Estimate

L.     City Working Drawings                Three (3) days after Landlord's receipt of            Landlord
       Revision Completion                  City revisions to Working Drawings

M.     Approval of City Working             Two (2) days after submission to Tenant of             Tenant
       Drawings Revisions                   City Working Drawings Revisions (if
                                            substantial)
</TABLE>

May 2, 2000
Page 2 of 5
<PAGE>   35
3.       BUILDING PERMIT

         After the Final Approval Date has occurred, Landlord shall, if Landlord
has not already done so, submit the Working Drawings to the appropriate
governmental body or bodies for final plan checking and a building permit.
Landlord, with Tenant's cooperation, shall cause to be made any change in the
Working Drawings necessary to obtain the building permit; provided, however,
after the Final Approval Date, no substantial changes shall be made to the
Working Drawings that will: (i) substantially increase the cost to Tenant; or,
(ii) materially and adversely affect the use of the Premises by Tenant, without
the prior written approval of both Landlord and Tenant to occur within two (2)
days of presentation of said changes and increased costs, and then only after
agreement by Tenant to pay any excess costs resulting from such changes.

4.       CONSTRUCTION OF TENANT IMPROVEMENTS

         After the Final Approval Date has occurred and a building permit for
the work has been issued, Landlord shall, through a guaranteed maximum cost or
fixed price (at Landlord's sole option) construction contract ("Construction
Contract") with a reputable, licensed contractor selected by Landlord
("Contractor"), cause the construction of the Tenant Improvements to be carried
out in substantial conformance with the Working Drawings in a good and
workmanlike manner using first class materials. The costs associated with the
construction of the Tenant Improvements shall be paid as set forth in Sections 5
and 6 of this Work Letter. Landlord shall see that the construction complies
with all applicable building, fire, health, and sanitary codes and regulations,
the satisfaction of which shall be evidenced by a certificate of occupancy for
the Premises. Upon substantial completion of the Tenant Improvements, Tenant
shall comply with all laws, ordinances, regulations, requirements and other
directives of any federal, state or local governmental or quasi-governmental
authority having or exercising jurisdiction there over. Tenant shall not use or
occupy the Premises, or knowingly permit it to be used or occupied, contrary to
any statute, rule, order, ordinance, requirement or regulation applicable
thereto, or in any manner which would violate any certificate of occupancy
affecting the same, or which would violate any certificate of occupancy
affecting the same, or which would make void or voidable any insurance then in
force with respect thereto or which would cause structural injury to the
improvements or cause the value or usefulness of the Premises, or any portion
thereof, substantially to diminish (reasonable wear and tear excepted), or which
would constitute a public or private nuisance or waste and Tenant agrees that it
will promptly, upon discovery of any such use, take all necessary steps to
compel the discontinuance of such use. Tenant shall obtain and pay for all
permits, required for Tenant's occupancy of the Premises and shall promptly take
all substantial and non-substantial actions necessary to comply with all
applicable statutes, ordinances, rules, regulations, orders and requirements
regulating the use by Tenant of the Premises, including, without limitation, the
Occupational Health and Safety Act and the Americans with Disabilities Act. If
requested by Landlord, Tenant shall provide evidence satisfactory to Landlord of
Tenant's compliance.

5.       TENANT IMPROVEMENT ALLOWANCE

         Landlord shall provide Tenant with a Tenant Improvement Allowance in
the amount of [$27.00/USF] towards the cost of the design, permitting and
construction of the Tenant Improvements, including without limitation design,
engineering and consulting fees (collectively, the "Tenant Improvement Costs").
The Tenant Improvement Allowance shall be used for payment of the following
Tenant Improvements Costs:

         (a) Preparation by Landlord's Space Planner of the Preliminary Space
Plan, Pricing Plan and the Working Drawings and any and all revisions to same as
provided in Section 2 of this Work Letter, including without limitation all fees
charged by City (including without limitation fees for governmental review
including building permits and plan checks) in connection with the Tenant
Improvements work in the Premises;

         (b) Construction work for completion of the Tenant Improvements as
reflected in the Construction Contract, as well as the costs of suite and
directory sign identification of Tenant; and

         (c) All contractors' charges, general conditions, performance bond
premiums, construction fees, and construction management and supervision fees.

6.       COSTS IN EXCESS OF TENANT IMPROVEMENT ALLOWANCE AT TENANT'S EXPENSE

         (a) COST APPROVAL. Tenant shall be obligated to bear the excess of the
Tenant Improvement Costs in excess of the amount of the Tenant Improvement
Allowance available to defray such costs. Within five (5) days of the submission
of Working Drawings for plan checking referred to in Section 3 of this Work

May 2, 2000
Page 3 of 5
<PAGE>   36
Letter, Landlord shall prepare and submit to Tenant a written estimate of the
amount of the total Tenant Improvement Costs (the "Final Estimate"). In the
event the Final Estimate exceeds the TI Cost Estimate (defined below) by more
than five percent (5%), Tenant shall either approve or disapprove the Final
Estimate by written notice delivered to Landlord within two (2) days after
Tenant's receipt thereof. If Tenant fails to deliver to Landlord written notice
of its disapproval within such two (2) day period or if the Final Estimate does
not exceed the TI Cost Estimate by more than five percent (5%), Tenant shall be
deemed to have approved the Final Estimate. If the Final Estimate exceeds the TI
Cost Estimate and Tenant approves (or is deemed to have approved) the Final
Estimate, Tenant shall include payment to Landlord for the full amount of such
excess within said two (2) day period. Landlord shall not have any obligation to
commence construction of the Tenant Improvements until Tenant has paid to
Landlord the full amount of any such excess, and any delay in the commencement
of construction of the Tenant Improvements resulting therefrom shall be
chargeable to Tenant as a Tenant Delay (defined below). If Tenant disapproves
the Final Estimate within the two (2) day period, Landlord shall have the right
to instruct Landlord's Space Planner to revise the Working Drawings in a manner
satisfactory to Landlord, after consultation with Tenant, so as to reduce the
estimated costs to an amount not greater than five percent (5%) over the TI Cost
Estimate, and any excess estimated costs remaining after such amendment shall be
paid by Tenant within two (2) days of Tenant's receipt of the revised estimate.
If the revised estimated costs remain greater than five percent (5%) over the TI
Cost Estimate, then Landlord may, at its sole option, either (i) proceed with
the construction of the Tenant Improvements in accordance with the revised
Working Drawings, and absorb the cost in excess of five percent (5%) over the TI
Cost Estimate, or (ii) terminate this Lease by written notice to Tenant. The
term "TI Cost Estimate" shall refer to the greater of the Preliminary Estimate
or the Tenant Improvement Allowance, but, in any case, "TI Cost Estimate" shall
exclude all costs associated with change orders requested by Tenant.

         (b) FINAL COSTS. Within ninety (90) days after completion by Landlord
of the Tenant Improvements, Landlord shall determine the actual final Tenant
Improvements Costs and shall submit a written statement of such amount to
Tenant. If any estimate previously paid by Tenant exceeds the amount due
hereunder from Tenant for such work, such excess shall be refunded to Tenant. If
any amount is still due from Tenant for such work, then Tenant shall pay such
amount in full within ten (10) days of receipt of Landlord's statement.

7.       CHANGE ORDERS

         Tenant may from time to time request and obtain change orders during
the course of construction provided that: (a) each such request shall be
reasonable, shall be in writing and signed by or on behalf of Tenant, and shall
not result in any structural change in the Building, as reasonably determined by
Landlord; (b) all additional charges and costs, including without limitation
architectural and engineering costs, construction and material costs, delay
costs resulting from such change orders, processing costs of any governmental
entity, and increased construction, construction management and supervision
fees, together with an administrative fee to Landlord to cover its change order
processing costs of One Hundred Dollars ($ 100.00) per occurrence, shall be the
sole and exclusive obligation of Tenant; and (c) any resulting delay in the
completion of the Tenant Improvements shall be deemed a Tenant Delay and in no
event shall extend the Commencement Date of the Lease. Upon Tenant's request for
a change order, Landlord shall as soon as reasonably possible submit to Tenant a
written estimate of the increased or decreased cost and anticipated delay, if
any, attributable to such requested change. Within two (2) days of the date such
estimated cost adjustment and delay are delivered to Tenant, Tenant shall advise
Landlord whether it wishes to proceed with the change order, and if Tenant
elects to proceed with the change order, Tenant shall remit, concurrently with
Tenant's notice to proceed, the amount of the increased cost, if any,
attributable to such change order. Election by Tenant to not proceed with any
change order shall not relieve Tenant from its obligation to pay to Landlord its
administration processing charge of One Hundred Dollars ($100.00). Unless Tenant
includes in its initial change order request that the work in process at the
time such request is made be halted pending approval and execution of a change
order, landlord shall not be obligated to stop construction of the Tenant
Improvements, whether or not the change order relates to the work then in
process or about to be started.

8.       TENANT DELAYS

         In no event shall the Commencement Date of the Lease be extended or
delayed due or attributable to delays due to the fault of Tenant ("Tenant
Delays"). Tenant Delays shall include, but are not limited to, delays caused by
or resulting from any one or more of the following:

         (a) Tenant's failure to timely review and reasonably approve the
Preliminary Space Plan, Pricing Plan or Working Drawings or to promptly
cooperate with Landlord's Space Planner and furnish information to Landlord for
the preparation of the Preliminary Plan, Pricing Plan and Working Drawings;

May 2, 2000
PAGE 4 OF 5
<PAGE>   37
         (b) Tenant's request for or use of special materials, finishes or
installations which are not readily available, provided that Landlord shall
notify Tenant in writing that the particular material, finish,' or installation
is not readily available promptly upon Landlord's discovery of same;

         (c) Change orders requested by Tenant;

         (d) Interference by Tenant or by Tenant's Agents with Landlord's
construction activities;

         (e) Tenant's failure to approve any other item or perform any other
obligation in accordance with and by the dates specified herein or in the
Construction Contract;

         (f) Tenant's requested changes in the Preliminary Space Plan, Pricing
Plan, Working Drawings or any other plans and specifications after the approval
thereof by Tenant or submission thereof by Tenant to Landlord;

         (g) Tenant's failure to approve written estimates of costs in
accordance with this Work Letter; and

         (h) Tenant's obtaining or failure to obtain any necessary governmental
approvals or permits for Tenant's intended use of the Premises.

         If the Commencement Date of the Lease is delayed by any Tenant Delays,
whether or not within the control of Tenant, then the Commencement Date of the
Lease and the payment of Rent shall be accelerated by the number of days of such
delay. Landlord shall give Tenant written notice within a reasonable time of any
circumstance that Landlord believes constitutes a Tenant Delay.

9.       TRADE FIXTURES AND EQUIPMENT

         Tenant acknowledges and agrees that Tenant is solely responsible for
obtaining, delivering and installing in the Premises all necessary and desired
furniture, trade fixtures, equipment and other similar items, and that Landlord
shall have no responsibility whatsoever with regard thereto. Tenant further
acknowledges and agrees that neither the Commencement Date of the Lease nor the
payment of Rent shall be delayed for any period of time whatsoever due to any
delay in the furnishing of the Premises with such items.

10.      FAILURE OF TENANT TO COMPLY

         Any failure of Tenant to comply with any of the provisions contained in
this Work Letter within the times for compliance herein set forth shall be
deemed a default under the Lease. In addition to the remedies provided to
Landlord in this Work Letter upon the occurrence of such a default by Tenant,
Landlord shall have all remedies available at law or equity to a landlord
against a defaulting tenant pursuant to a written lease, including but not
limited to those set forth in the Lease.

May 2, 2000
Page 5 of 5
<PAGE>   38
                                   EXHIBIT "D"
                          COMMENCEMENT DATE MEMORANDUM

DATE:____________________, 2000

RE:      Office Lease dated May _, 2000, by and between Pac Court Associates,
         L.P., a California limited partnership, as "Landlord", and Integrated
         Information Systems, Inc., a Delaware corporation, as "Tenant", for
         the Premises known as 114 Pacifica, Suite 300, Irvine, California.

                                    AGREEMENT

The undersigned hereby agree as follows:

         1. The Tenant Improvements (as defined in the Lease) to the Premises
have been substantially completed in accordance with the terms and conditions of
the Lease, subject only to "punch list" items agreed to by Landlord and Tenant
pursuant to the terms of the Lease.

         2. The Commencement Date, as defined in and determined in accordance
with the Lease, is hereby stipulated for all purposes to be

         3. In accordance with the Lease, Monthly Rent (as defined in the Lease)
in tile amount of $_________________________, subject to adjustment in
accordance with the terms of the Lease, commences to accrue on
_____________________________ and is due and payable in advance on the first day
of each and every month during the Term (as defined in the Lease). Unless and
until notified by Landlord to the contrary, Tenant shall make its Rent checks
payable to ____________________________.

"LANDLORD"   PAC COURT ASSOCIATES, L.P., a California limited partnership

             By:    Banyan Pacific, LLC, a California limited liability company,
                    general partner

                    By:  Banyan Realty Group, LLC, a California
                         limited liability company, managing member

                         By: ________________________________________
                             George W. Ceithaml, Trustee of the
                             Ceithaml Living Trust #2 dated April 15,
                             1989, managing member

"TENANT"     INTEGRATED INFORMATION SYSTEMS, INC., a Delaware corporation

             By:  ___________________________________________________
             Its: Jeffrey Frankel, Vice President and General Counsel

May 2, 2000
<PAGE>   39
                                   EXHIBIT "E"
                              RULES AND REGULATIONS

         1. Landlord shall furnish to the Premises during the hours of 8:00 a.m.
and 6:00 p.m., Monday through Friday, and 8:00 a.m. to 1:00 p.m. on Saturday,
generally recognized national holidays excepted, reasonable air conditioning,
heating and ventilation services. Landlord shall also furnish the Building with
elevator service, reasonable amounts of electricity for normal lighting and
office equipment, and water for lavatory and drinking purposes.

         2. Landlord shall have the right from time to time to establish
reasonable rules pertaining to elevator usage, including the allocation and
reservation of such usage for Tenant' initial move-in to the Premises,
subsequent deliveries to or removal of items from the Premises, and vacation of
the Premises.

         3. Landlord shall provide janitorial services five (5) days per week,
Sunday through Thursday. The cleaning services provided by Landlord shall
exclude refrigerators, microwave ovens and eating utensils (plates, drinking
containers and silverware), and interior glass partitions. Should Tenant require
any additional or unusual janitorial services necessitated by any nonstandard
improvements to the Premises, including, without limitation, wall coverings and
upgraded floor coverings installed by or for Tenant, or by reason of any use of
the Premises which is in violation of the Lease (and nothing herein shall be
deemed a waiver of any such violation), Tenant shall pay to Landlord the cost of
any such additional services. Tenant shall pay Landlord for the cost of removal
of any of Tenant's refuse and rubbish to the extent that they exceed the amounts
usually generated by normal office usage, in Landlord's sole discretion. Any
person employed by Tenant to provide janitorial or security services shall,
while in the Project and outside of the Premises, be subject to and under the
control and direction of Landlord or its designated representative (but not as
an agent or servant of Landlord, and the Tenant shall be responsible for all
acts of such persons).

         4. No sign, advertisement or notice shall be displayed, printed or
affixed on or to the Premises or to the outside or inside of the Project or so
as to be visible from outside the Premises or Project without Landlord's prior
written consent. Landlord shall have the right to remove any non-approved sign,
advertisement or notice, without notice to and at the expense of Tenant, and
Landlord shall not be liable in damages for such removal. All approved signs or
lettering on doors and walls shall be printed, painted, affixed or inscribed at
the expense of Tenant by Landlord or by a person selected by Landlord and in a
manner and style acceptable to Landlord.

         5. Tenant shall not obtain for use on the Premises ice, waxing,
cleaning, interior glass polishing, rubbish removal, towel or other similar
services, or accept barbering or bootblackening, or coffee cart services, milk,
soft drinks or other like services on the Premises, except from persons
authorized by Landlord and at the hours and under regulations fixed by Landlord.
No vending machines or machines of any description shall be installed,
maintained or operated upon the Premises without Landlord's prior written
consent.

         6. The sidewalks, halls, passages, exits, entrances, elevators and
stairways shall not be obstructed by Tenant or used for any purpose other than
for ingress and egress from Tenant's Premises. Under no circumstances is trash
to be stored in the corridors. Written notice must be given to Landlord prior to
Tenant's move-in, move-out and prior to any subsequent deliveries, including
deliveries of furniture, freight and other large or heavy articles. These and
all other deliveries may be brought into the Project only at times and in the
manner designated by Landlord, as designated in a set of sub-rules and
regulations prepared from time to time by Landlord and delivered to Tenant prior
to any such move-in, move-out or delivery. These sub-rules and regulations may
include, without limitation, a designation of the building door or doors which
Tenant may utilize for deliveries, a designation of those sections of the Common
Area which may be utilized by delivery vehicles for the purpose of loading or
unloading, a requirement of the use of elevator pads, or temporary masonite or
plywood floorings, and other protective measures to prevent damage to elevators,
floors and walls, and a designation of the days and hours during which
deliveries may be made. All deliveries shall always at Tenant's sole
responsibility and risk. Tenant shall, prior to any move-in, move-out or
delivery activity, obtain and comply with Landlord's current rules relating to
such activities. All damage done to the Project by moving or maintaining such
furniture, freight or articles shall be repaired by Landlord at Tenant's
expense. Tenant shall move all supplies, furniture and equipment as soon as
received directly to the Premises, and shall move all waste that is at any time
being taken from the Premises directly to the areas designated for disposal.

         7. Toilet rooms, toilets, urinals, wash bowls and other apparatus shall
not be used for any purpose other than for which they were constructed and no
foreign substance of any kind whatsoever shall be thrown therein.

         8. Tenant shall not overload the floor of the Premises or mark, drive
nails, screw or drill into the partitions, ceilings or floor or in any way
deface the Premises. Tenant shall not place typed, handwritten or computer
generated signs in the corridors or any other common areas.

         9. In no event shall Tenant place a load upon any floor of the Premises
or portion of any such flooring exceeding the floor load per square foot of area
for which such floor is designed to carry and which is allowed by law, or any
machinery or equipment which shall cause excessive vibration to the Premises or
noticeable vibration to any other part of the Project. Prior to bringing any
heavy safes, vaults, large computers or similarly heavy equipment into the
Project, Tenant shall inform Landlord in writing of the dimensions and weights
thereof and shall obtain Landlord's consent thereto. Such consent shall not
constitute a representation or warranty by Landlord that the safe, vault or
other equipment complies, with regard to distribution of weight and/or
vibration, with the provisions of this Rule 8 nor relieve Tenant from
responsibility for the consequences of such noncompliance, and any such safe,
vault or other equipment which Landlord determines to constitute a danger of
damage to the Project or a nuisance to other tenants, either alone or in
combination with other heavy and/or

May 2, 2000
Page 1 of 4

<PAGE>   40
vibrating objects and equipment, shall be promptly removed by Tenant, at
Tenant's cost, upon Landlord's written notice of such determination and demand
for removal thereof.

         10. Tenant shall not use or keep in the Premises or Project any
kerosene, gasoline or inflammable, explosive or combustible fluid or material,
or use any method of heating or air-conditioning other than that supplied by
Landlord.

         11. Tenant shall not lay linoleum, tile, carpet or other similar floor
covering so that the same shall be affixed to the floor of the Premises in any
manner except as approved by Landlord.

         12. Tenant shall not install or use any blinds, shades, awnings or
screens in connection with any window or door of the Premises and shall not use
any drape or window covering facing any exterior glass surface other than the
standard drapes, blinds or other window covering established by Landlord.

         13. Tenant shall cooperate with Landlord in obtaining maximum
effectiveness of the cooling system by closing window coverings when the sun's
rays fall directly on windows of the Premises. Tenant shall not obstruct, alter,
or in any way impair the efficient operation of Landlord's heating, ventilating
and air-conditioning system. Tenant shall not tamper with or change the setting
of any thermostats or control valves. If any lights, machines or equipment are
used by Tenant in the Premises which materially affect the temperature otherwise
maintained by the air conditioning system, or generate substantially more heat
in the Premises than would be generated by the building standard lights and
usual office equipment, Landlord shall have the right, at its election, to
install or modify any machinery and equipment to the extent Landlord deems
necessary to restore temperature balance. The cost of installation, and any
additional cost of operation and maintenance, shall be paid by Tenant to
Landlord promptly upon demand.

         14. The Premises shall not be used for manufacturing or for the storage
of merchandise except as such storage may be incidental to the permitted use of
the Premises. Tenant shall not, without Landlord's prior written consent, occupy
or permit any portion of the Premises to be occupied or used for the manufacture
or sale of liquor or tobacco in any form, or a barber or manicure shop, or as an
employment bureau. The Premises shall not be used for lodging or sleeping or for
any improper, objectionable or immoral purpose. No auction shall be conducted on
the Premises.

         15. Tenant shall not make, or permit to be made, any unseemly or
disturbing noises, or disturb or interfere with occupants of Project or
neighboring buildings or premises or those having business with it by the use of
any musical instrument, radio, phonographs or unusual noise, or in any other
way.

         16. No bicycles, vehicles or animals of any kind shall be brought into
or kept in or about the Premises, and no cooking shall be done or permitted by
any tenant in the Premises, except that the preparation of coffee, tea, hot
chocolate and similar items for Tenant and its employees and visitors shall be
permitted. Tenant not shall cause or permit any unusual or objectionable odors
to be produced in or permeate from or throughout the Premises. The foregoing
notwithstanding, Tenant shall have the right to use a microwave and to heat
microwavable items typically heated in an office. No hot plates, toasters,
toaster ovens or similar open element cooking apparatus shall be permitted in
the Premises. Tenant shall maintain all parts of the Premises, including without
limitation all cooking and eating areas, in a neat and sanitary condition and
free of crumbs, spills, spoilage, and any other condition which may attract
insects, rodents or other vermin.

         17. The sashes, sash doors, skylights, windows and doors that reflect
or admit light and air into the halls, passageways or other public places in the
Project shall not be covered or obstructed by Tenant, nor shall any bottles,
parcels or other articles be placed on the window sills.

         18. No additional locks or bolts of any kind shall be placed upon any
of the doors or windows by Tenant, nor shall any changes be made in existing
locks or the mechanisms thereof unless Landlord is first notified thereof, gives
written approval, and is furnished a key therefor. Tenant must, upon the
termination of its tenancy, give to Landlord all keys and key cards of stores,
offices, or toilets or toilet rooms, either furnished to or otherwise procured
by Tenant, and in the event of the loss of any keys so furnished, Tenant shall
pay Landlord the cost of replacing the same or of changing the lock or locks
opened by such lost key if Landlord shall deem it necessary to make such change.
If more than two keys for one lock are desired, Landlord will provide them upon
payment therefor by Tenant. Tenant shall not key or re-key any locks. All locks
shall be keyed by Landlord's locksmith only.

         19. Landlord shall have the right to prohibit any advertising by Tenant
which, in Landlord's opinion, tends to impair the reputation of the Project or
its desirability as an office building and upon written notice from Landlord
Tenant shall refrain from and discontinue such advertising.

         20. Tenant shall have access to the Building 24 hours per day, 7 days
per week, 52 weeks per year, provided that Landlord may, but shall not be
obligated to, install such access control systems as it deems advisable for the
Building. Such systems may, but need not, include a card identification system,
tenant access control system, fire stairwell exit door alarm system, elevator
control system or any other access controls, in Landlord's discretion. In the
event that Landlord elects to provide any or all of such systems or services,
Landlord may, discontinue providing them, or any of them, at any time with or
without notice and in Landlord's sole and absolute discretion. Landlord may
require a deposit as security against the loss of access control cards and/or
keys issued to a Tenant and/or require a fee for the replacement of lost keys
and/or access control cards. Landlord shall have no liability to Tenant for the
provision by Landlord of improper or inadequate access control services, for any
breakdown in service, or for the failure by Landlord to provide access control
services or any particular access control service. Tenant further acknowledges
that Landlord's access control systems may be temporarily inoperative during
building

May 2, 2000
Page 2 of 4

<PAGE>   41
emergencies or system repairs. Tenant agrees to assume responsibility for
compliance by its employees with any regulations established by Landlord with
respect to any access control cards or any other system of building access as
Landlord may establish, and further agrees to supply Landlord with, and update
as necessary, a list of employees who have been provided with any access control
cards, keys, or any other means of building access. In addition, upon any
termination of employment of any employee formerly provided with any such means
of access, Tenant agrees to require the return of any access control cards,
keys, and any other devices, and to immediately notify Landlord of such
termination and of any failure by Tenant to secure the return of any access
control card or other device. Returned access control cards or other
computer-encoded devices must be turned in to Landlord for reprogramming prior
to any transfer to a new employee. If Tenant utilizes the services of outside
vendors or service personnel, such as water delivery or plant maintenance,
Tenant shall provide Landlord with a list of such persons or companies whether
or not they have been provided with any access control cards or other means of
access. Tenant shall be responsible for all persons to whom it allows
after-hours access and shall be liable to Landlord for all acts of such persons.
Tenant shall provide Landlord with the name and telephone numbers (including any
mobile phone numbers) of an after-hours emergency contact on behalf of Tenant
and the name and phone numbers of any security company providing security to the
Premises. Should Tenant elect to provide its own security system with respect to
the Premises, Tenant shall provide Landlord with advance notice of the
installation of such system, a brief description of the operation of such
system, the security code or codes to be used, and the names and telephone
numbers (home and mobile) of two (2) emergency contacts on behalf of Tenant.

         21. All doors opening on to public corridors shall be kept closed,
except when being used for ingress and egress. Tenant shall cooperate and comply
with any reasonable safety or security programs, including fire drills and air
raid drills, and the appointment of "fire wardens" developed by Landlord for the
Project, or required by law. Before leaving the Premises unattended, Tenant
shall close and securely lock all doors or other means of entry to the Premises
and shut off all lights and water faucets in the Premises.

         22. The maintenance and service requirements of Tenant will be attended
to only in response to inquiries made to Landlord's designated representatives.

         23. Canvassing, soliciting and peddling in, at or around the Project
are prohibited and Tenant shall cooperate to prevent the same.

         24. All office equipment of any electrical or mechanical nature shall
be placed by Tenant in the Premises in settings approved by Landlord, to absorb
or prevent any vibration, noise or annoyance. Tenant shall furnish and utilize
plastic or wood floor mats so as to minimize carpet damage resulting from the
use of rollers on chairs.

         25. No air-conditioning unit or other similar apparatus shall be
installed or used by Tenant without the prior written consent of Landlord.
Tenant shall pay the cost of all electricity used for air-conditioning in the
Premises if such electrical consumption exceeds normal office requirements,
regardless of whether additional apparatus is installed pursuant to the
preceding sentence.

         26. There shall not be used in any space, or in the public halls of the
Project, either by or on behalf of Tenant, any hand trucks except those equipped
with rubber tires and side guards.

         27. All electrical ceiling fixtures hung in offices or spaces along the
perimeter of the Project must be fluorescent and/or of a quality, type, design
and bulb color approved by Landlord. Tenant shall not permit the consumption in
the Premises of more than 2 1/2 watts per net usable square foot in the Premises
in respect of office lighting nor shall Tenant permit the consumption in the
Premises of more than 1 1/2 watts per net usable square foot of space in the
Premises in respect of the power outlets therein, at any one time. In the event
that such limits are exceeded, Landlord shall have the right to require Tenant
to remove lighting fixtures and equipment and/or to charge Tenant for the cost
of the additional electricity consumed.

         28. Parking.

         a) Landlord agrees to maintain, or cause to be maintained, an area
specially designated as automobile parking (the "Parking Area"). The Parking
Area shall be for the use of Tenant, employees of Tenant, and other tenants or
occupants of the Building, as well as patrons, visitors and other invitees of
the Building. The Parking Area shall not be used to park large trucks or
recreational vehicles.

         b) All vehicles must observe all directional signs and arrows and any
posted speed limits. Unless otherwise posted, in no event shall the speed limit
exceed five (5) miles per hour.

         c) All vehicles shall park in one (1) stall only. No vehicles shall be
parked in areas which are posted or marked as "no parking" or on or in ramps,
driveways, aisles or any other area not striped or otherwise designated for
parking. Tenant and its employees shall not park in areas designated as "Guest
Parking", "Visitor Parking" or as being time-limited, such as "I Hour Parking".
Any vehicle parked for any length of time deemed excess by Landlord shall be
subject to towing without notice and at the vehicle owner's expense. In no event
shall Tenant or its employees interfere with the use and enjoyment of the
Parking Area by other tenants of the Building or their employees or invitees.

         d) Washing, waxing, cleaning or servicing of vehicles is prohibited
unless authorized by Landlord.

May 2, 2000
Page 3 of 4

<PAGE>   42
         e) Landlord shall not be liable for any damage to a vehicle and all
persons parking in the Parking Area are instructed to lock their vehicles. All
responsibility for any loss or damage to any vehicle or any personal property
therein is assumed by the parker.

         f) Overnight parking is prohibited unless authorized in advance by
Landlord.

         g) Tenant agrees to furnish to Landlord, upon request, a list of its
employees' names and of Tenant's and its employees' vehicle license numbers.

         h) Tenant shall not use more parking spaces than specifically allocated
to it under Section 10.7 of the Lease; nor shall Tenant assign nor sublet any of
such spaces, either voluntarily or by operation of law, without the prior
written consent of Landlord, except in connection with an authorized assignment
of Tenant's Lease or an authorized subletting of the Premises.

         29. The Project is a non-smoking Project. Smoking or carrying lighted
cigars or cigarettes in the Premises or the Project, including the elevators in
the Project, is prohibited.

         30. Landlord shall have the right to control access to the telephone
and telecommunications rooms and facilities within the Project for the privacy,
security and benefit of all Project tenants and Landlord, and may specify from
time to time the manner in which connections to such facilities are performed.

         31. If Tenant has the right to use a balcony adjacent to the Premises
(the "Balcony"), the foregoing Rules and Regulations shall apply to Tenant's use
of the Balcony and, where applicable and only with respect to this Exhibit "E",
the Premises shall be deemed to include the Balcony. In addition, there shall be
no smoking, cooking or barbecues, and Tenant shall not play or allowed to be
played any live or recorded music, on the Balcony. Tenant shall not place or
allow any storage of materials of any kind or any signs, banners or
advertisements on the Balcony. Tenant shall not place or allow any furniture or
plants on the Balcony without the prior written consent of Landlord which shall
not be unreasonably withheld.

         Tenant agrees to comply with all such Rules and Regulations and to
cause such compliance by its employees and, to the extent applicable, its
invitees. Should Tenant not comply with any of the Rules and Regulations set
forth above, Landlord or any "Operator", "Association" or "Declarant" under any
Restrictions may serve a three (3) day notice to correct the deficiencies. If
Tenant does not comply with the correction notice by the end of the notice
period, Tenant will be in default under the Lease, and Landlord and/or its
designee shall have the right, without further notice, to cure the violation at
Tenant's expense.

         Landlord reserves the right to amend or supplement the foregoing Rules
and Regulations and to adopt additional rules and regulations applicable to the
Premises. Notice of any such amendments and supplements shall be given to
Tenant.

<PAGE>   43
                                  EXHIBIT "F"
                         IDENTIFICATION OF RESTRICTIONS

1.       Irvine Center Development Agreement recorded January 23, 1984 as
         Instrument No. 84-030968 of Official Records of Orange County.

2.       Covenants, conditions and restrictions in instruments recorded in the
         Official Records of Orange County as follows: (i) Instrument No.
         85-351938, (ii) Instrument No. 86-047979 (amended by Instrument No.
         86-063943), (iii) Instrument No. 87-677156 (amended by Instrument No.
         88-000363); (iv) Instrument No. 88-206912, and (v) Instrument No.
         88-206911 (as amended by Instrument Nos. 89-605650 and 19980598732)

3.       Aircraft Notification for Irvine Center (Irvine Spectrum 1) recorded as
         Instrument No. 85-351939.

<PAGE>   44
                               LEASE RIDER NO. 1
                                LETTER OF CREDIT

                  THIS LEASE RIDER is attached to and made a part of that
certain Office Lease dated May 16, 2000, by and between PAC COURT ASSOCIATES,
L.P. a California limited partnership, as "Landlord", and INTEGRATED INFORMATION
SYSTEMS, INC., a Delaware corporation, as "Tenant", for the Premises known as
114 Pacifica, Suite 300, Irvine, California 92618.

         The capitalized terms used and not otherwise defined herein shall have
the same definitions as set forth in the Lease. The provisions of this Lease
Rider shall supersede any inconsistent or conflicting provisions of the Lease.

THE FOLLOWING IS HEREBY ADDED TO THE END OF SECTION 4.5:

LETTER OF CREDIT.

                  (a) Letter of Credit Requirement. As additional security for
         the full and faithful performance of every provision of this Lease to
         be performed by Tenant, Tenant shall deposit with Landlord on or before
         the commencement of construction of Tenant Improvements, an
         unconditional, irrevocable sight draft letter of credit ("LETTER OF
         CREDIT") with the stated amount set forth in subparagraph (b) in form
         and content acceptable to Landlord and drawn on a commercial lender
         acceptable to Landlord, having a term not shorter than the Lease Term.
         Tenant shall deliver its proposed form of letter of credit to Landlord
         no later than ten (10) days after the date of this Lease. Landlord
         shall not have any obligation to commence construction of the Tenant
         Improvements until Tenant has delivered the Letter of Credit, and any
         delay in the commencement of construction of the Tenant Improvements
         resulting therefrom shall be chargeable to Tenant as a Tenant Delay (as
         defined in the Work Letter). Tenant shall pay all expenses, points
         and/or fees incurred in obtaining, renewing or replacing the Letter of
         Credit.

                  (b) Stated Amount. The initial stated amount of the Letter of
         Credit shall be the sum of Three Hundred Thousand Dollars ($300,000)
         ("ORIGINAL STATED AMOUNT"). Provided no Event of Default has occurred,
         upon the fifth and sixth anniversary of the Commencement Date, the
         stated amount of the Letter of Credit shall be reduced by $100,000.
         Upon the occurrence of an Event of Default, Landlord shall have the
         right to prevent the reduction of the stated amount of the Letter of
         Credit described in the preceding sentence and reinstate the Original
         Stated Amount of the Letter of Credit.

                  (c) Landlord Rights upon Default. Upon any Event of Default,
         without waiver of any rights Landlord may have under this Lease or at
         law or in equity as a result of an Event of Default, Landlord shall
         have the right, in Landlord's sole and absolute discretion, to draw
         upon the Letter of Credit in whole or in part. Landlord may use the
         proceeds drawn from the Letter of Credit for one or any combination of
         the following: (1) the payment of any Rent not paid when due, (2) the
         repair of damage to the Premises, (3) the payment of any other amount
         which Landlord may spend by reason of an Event of Default, (4)
         compensation of Landlord for any other loss or damage which Landlord
         may suffer by reason of an Event of Default to the full extent
         permitted by law, and/or (5) be retained by Landlord as security ("L/C
         SECURITY DEPOSIT") for the full and faithful performance of every
         provision of this Lease to be performed by Tenant. The use,
         application, retention of or draw on the Letter of Credit, by Landlord
         shall not prevent Landlord from exercising any other right or remedy
         provided by this Lease or by law, it being intended that Landlord shall
         not be required to proceed against the Letter of Credit and shall not
         operate as a limitation on any recovery to which Landlord may otherwise
         be entitled.

                  (d) Landlord Options upon Cure of Default. If an Event of
         Default is properly cured by Tenant, and such cure is acknowledged by
         Landlord, the Landlord may, but is not required to, elect one or any of
         combination of the following options: (1) retain all or any part of
         amounts drawn on any Letter of Credit as an L/C Security Deposit,
         and/or (2) return to Tenant all or any part of amounts drawn, minus
         such amounts already applied by Landlord as provided in subparagraph
         (c) above, provided that Tenant has satisfied the provisions of
         subparagraph (e).

                  (e) Restoration and Delivery of Letters of Credit. If all or
         any portion of the Letter of Credit is drawn upon by Landlord
         hereunder, Tenant shall, within five (5) days after written demand
         therefore, deposit with Landlord (1) additional cash as part of the L/C
         Security Deposit such that the sum of the L/C Security Deposit and any
         undrawn amounts under a valid and enforceable Letter of Credit is not
         less than the Original Stated Amount; or (2) a replacement Letter of
         Credit with a

May 2, 2000
Page 1 of 2

<PAGE>   45
sufficient stated amount such that said stated amount plus any L/C Security
Deposit is not less than the Original Stated Amount. Tenant's failure to (i)
comply with the preceding sentence, or (ii) keep the Letter of Credit in full
force and effect as required hereunder shall constitute an Event of Default
under this Lease.

         (f) Right to Assign Letters of Credit. Tenant acknowledges that
Landlord has the right to transfer or mortgage its interest in the Property and
in this Lease and Tenant agrees that in the event of any such transfer or
mortgage, Landlord shall have the right to transfer or assign the Letter of
Credit or the L/C Security Deposit to the transferee or mortgagee, and in the
event of such transfer, Tenant shall look solely to such transferee or mortgagee
for the return of the L/C Security Deposit and/or the Letter of Credit.

"LANDLORD"   PAC COURT ASSOCIATES, L.P., a California limited partnership

             By:    Banyan Pacific, LLC, a California limited liability company,
                    general partner

                    By:  Banyan Realty Group, LLC, a California
                         limited liability company, managing member

                         By: /s/ George W. Ceithaml
                             George W. Ceithaml, Trustee of the
                             Ceithaml Living Trust #2 dated April 15,
                             1989, managing member

"TENANT"            INTEGRATED INFORMATION SYSTEMS, INC., a California
                    corporation

                    By: /s/ Jeffrey Frankel
                    Its:  Jeffrey Frankel,  Vice President and General Counsel

May 2, 2000
Page 2 of 2
<PAGE>   46
                                LEASE RIDER NO. 2
                              OPTION TO EXTEND TERM
                         (Fair Market Value Adjustment)

         THIS LEASE RIDER is attached to and made a part of that certain Office
Lease dated May 16, 2000, by and between PAC COURT ASSOCIATES, L.P. a California
limited partnership, as "Landlord", and INTEGRATED INFORMATION SYSTEMS, INC., a
Delaware corporation, as "Tenant", for the Premises known as 114 Pacifica, Suite
300, Irvine, California 92618.

         The capitalized terms used and not otherwise defined herein shall have
the same definitions as set forth in the Lease. The provisions of this Lease
Rider shall supersede any inconsistent or conflicting provisions of the Lease.

A.       OPTION TO EXTEND TERM.

                  1. GRANT OF OPTION. Landlord hereby grants to Tenant one (1)
         option (the "Option") to extend the Term of the Lease for an additional
         consecutive term of five (5) years ("Extension Term"). The Option shall
         be exercised only by written notice delivered to Landlord not later
         than nine (9) months before the expiration of the initial Term of the
         Lease. If Tenant fails to deliver to Landlord written notice of the
         exercise of the Option within the time period prescribed above, such
         Option shall lapse, and there shall be no further right to extend the
         Term of the Lease. This Option shall be forfeited by Tenant if at any
         time during the Term an Event of Default has occurred. If Tenant
         properly exercises the Option, "Term", as used herein and in the Lease,
         shall be deemed to include the Extension Term, unless specified
         otherwise herein or in the Lease.

                  2. PERSONAL OPTION. The Option is personal to Tenant. If
         Tenant assigns or otherwise transfers any interest under the Lease
         prior to the exercise of the Option, the Option shall lapse. If Tenant
         assigns or otherwise transfers any interest of Tenant under the Lease
         after the exercise of the Option but prior to the commencement of the
         Extension Term, the Option shall lapse and the Term of the Lease shall
         expire as if the Option were not exercised.

                  3. CALCULATION OF MONTHLY RENT. The Monthly Rent during the
         Extension Term shall be determined, as of the commencement of the
         Extension Term to the greater of (a) the "Fair Market Value" of the
         Premises or (b) the last Monthly Rent paid at the end of the initial
         Term. The "Fair Market Value" shall be determined in the following
         manner: Not later than one hundred eighty (180) days prior to the
         commencement of the Extension Term, Landlord and Tenant shall meet in
         an effort to negotiate, in good faith, the Fair Market Value of the
         Premises as of commencement of the Extension Term. If Landlord and
         Tenant have not mutually agreed in writing upon the Fair Market Value
         of the Premises at least one hundred fifty (150) days prior to the
         applicable commencement of the Extension Term, the Fair Market Value
         shall be determined by the following appraisal method:

                           a. PROCEDURE. If Landlord and Tenant are not able to
                  agree upon the Fair Market Value of the Premises within the
                  time period described above, then Landlord and Tenant shall
                  attempt to agree in good faith upon a single appraiser not
                  later than one hundred twenty (120) days prior to the
                  commencement date of the Extension Term. If Landlord and
                  Tenant are unable to agree upon a single appraiser within such
                  time period, then Landlord and Tenant shall each appoint one
                  appraiser not later than one hundred fifteen (115) days prior
                  to the commencement of the Extension Term, and Landlord and
                  Tenant shall each give written notice to the other of such
                  appointment at the time of such appointment. Within five (5)
                  days thereafter, the two appointed appraisers shall appoint a
                  third appraiser. If either Landlord or Tenant fails to appoint
                  its appraiser and to give written notice thereof to the other
                  party within the prescribed time period, the single appraiser
                  appointed shall determine the Fair Market Value of the
                  Premises. If both parties fail to appoint appraisers within
                  the prescribed time periods, then the first appraiser
                  thereafter selected by a party (such selection to be by
                  written notice thereof to such appraiser and the other party)
                  shall determine the Fair Market Value of the Premises. Each
                  party shall bear the cost of its own appraiser and the parties
                  shall share equally the cost of the single or third appraiser
                  if applicable. All appraisers shall have at least five (5)
                  years' experience in the appraisal of commercial/industrial
                  real property in the area in which the Premises are located
                  and shall be members of professional organizations such as MAI
                  or its equivalent. If a single appraiser is chosen, then such
                  appraiser shall determine the Fair Market Value of the
                  Premises. Otherwise, the Fair Market Value of the Premises
                  shall be the arithmetic average of the two (2) of the three
                  (3) appraisals which are closest in amount, and the third
                  appraisal shall be disregarded. Landlord and

May 2, 2000
Page 1 of 2
<PAGE>   47
Tenant shall instruct the appraiser(s) to complete their determination of the
Fair Market Value not later than eighty (80) days prior to the commencement of
the Extension Term.

         b. DEFINITION OF FAIR MARKET VALUE. For the purposes of such
appraisal, the term "Fair Market Value" shall mean the price that a ready and
willing tenant would pay, as of the commencement of the Extension Term, as
monthly rent, to a ready and willing landlord of Property comparable to the
Premises if such property were exposed for lease on the open market for a
reasonable period of time and taking into account all of the purposes for which
such property may be used. The Fair Market Value may include periodic increases
in Rent during the Extension Term as determined by the appraiser. As used
herein, "Property comparable to the Premises" shall mean property located in a
Class A office building within the Irvine Center. In no event shall the Monthly
Rent be reduced below the Monthly Rent applicable to the Premises just prior to
the end of the initial Lease Term

"LANDLORD"   PAC COURT ASSOCIATES, L.P., a California limited partnership

             By:    Banyan Pacific, LLC, a California limited liability company,
                    general partner

                    By:  Banyan Realty Group, LLC, a California
                         limited liability company, managing member

                         By: /s/ George W. Ceithaml
                             George W. Ceithaml, Trustee of the
                             Ceithaml Living Trust #2 dated April 15,
                             1989, managing member

"TENANT"            INTEGRATED INFORMATION SYSTEMS, INC., a Delaware
                    corporation

                    By: /s/ Jeffrey Frankel
                    Its:  Jeffrey Frankel,  Vice President and General Counsel

May 2, 2000
Page 2 of 2
<PAGE>   48
                               LEASE RIDER NO. 3
                RIGHT OF FIRST REFUSAL TO LEASE CONTIGUOUS SPACE

         THIS LEASE RIDER is attached to and made a part of that certain Office
Lease dated May 16, 2000, by and between PAC COURT ASSOCIATES, L.P. a California
limited partnership, as "Landlord", and INTEGRATED INFORMATION SYSTEMS, INC., a
Delaware corporation, as "Tenant", for the Premises known as 114 Pacifica, Suite
300, Irvine, California 92618.

         The capitalized terms used and not otherwise defined herein shall have
the same definitions as set forth in the Lease. The provisions of this Lease
Rider shall supersede any inconsistent or conflicting provisions of the Lease.

A. Tenant shall have a one-time right of first refusal ("Right of First
Refusal") during the Term of the Lease with respect to any intended lease
between Landlord and any third party for already existing improved office space
on the third floor of the Building contiguous to the initially leased Premises
("Expansion Space"). If at any time during the Term of the Lease, Landlord
receives a bona fide offer to lease all or any portion of such Expansion Space
to a third party under terms acceptable to Landlord, Landlord shall first
deliver written notice thereof to Tenant ("Landlord's Notice"). For a period of
seven (7) business days following Tenant's receipt of Landlord's Notice, Tenant
shall have the right to lease the space covered by such offer upon the terms and
conditions set forth in such offer to the extent such terms as set forth in the
offer are acceptable to Landlord by delivering to Landlord within said seven (7)
business day period written notice ("Election Notice") of its election to
exercise its Right of First Refusal. If Tenant fails or elects not to exercise
its Right of First Refusal granted pursuant to this Paragraph within said seven
(7) business day period, the Right of First Refusal shall automatically
terminate without further action of the parties, and Landlord shall be free to
lease the space covered by such offer, or any other space in the Project, to the
third party offeror or any subsequent offeror. This Right of First Refusal shall
be exercisable by Tenant on the express condition that at no time prior to the
exercise of the Right of First Refusal shall there have occurred an Event of
Default, and that at the time of the exercise of such Right of First Refusal no
Event of Default shall have occurred and be continuing under the Lease. Further,
if following the valid exercise of the Right of First Refusal and prior the
execution of a formal lease for the Expansion Space, an Event of Default occurs,
then at Landlord's option, the Right of First Refusal shall lapse as if it were
never exercised.

B. Tenant's Right of First Refusal shall be subject and subordinate to all
rights which have been granted by Landlord prior to the execution of the Lease
to other tenants of the Project, including without limitation, rights of first
opportunity, options and/or rights of first offer or refusal with respect to the
Expansion Space. The Right of First Refusal is personal to Tenant and may not be
exercised by or be assigned to any person or entity other than Tenant and shall
terminate and be of no further force or effect upon the assignment of the Lease
or subletting of the Premises to any person or entity, whether or not consented
to by Landlord.

C. Should Tenant properly exercise its Right of First Refusal, subject to
Landlord's rights with respect to the design and construction of the Expansion
Space, Tenant shall be permitted access and use of then existing
telecommunication conduits between the Premises and the Expansion Space for the
purposes of telecommunications cabling, provided that said conduits have
sufficient capacity for Tenant's telecommunications cabling. Such use shall be
at no additional cost to Tenant during the Term.

"LANDLORD"   PAC COURT ASSOCIATES, L.P., a California limited partnership

             By:    Banyan Pacific, LLC, a California limited liability company,
                    general partner

                    By:  Banyan Realty Group, LLC, a California
                         limited liability company, managing member

                         By: /s/ George W. Ceithaml
                             George W. Ceithaml, Trustee of the
                             Ceithaml Living Trust #2 dated April 15,
                             1989, managing member

"TENANT"            INTEGRATED INFORMATION SYSTEMS, INC., a Delaware
                    corporation

                    By: /s/ Jeffrey Frankel
                    Its:  Jeffrey Frankel,  Vice President and General Counsel

May 2, 2000

<PAGE>   49
                               LEASE RIDER NO. 4
                                 SIGNAGE RIGHT

         THIS LEASE RIDER is attached to and made a part of that certain Office
Lease dated May 16, 2000, by and between PAC COURT ASSOCIATES, L.P. a California
limited partnership, as "Landlord", and INTEGRATED INFORMATION SYSTEMS, INC., a
Delaware corporation, as "Tenant", for the Premises known as 114 Pacifica, Suite
300, Irvine, California 92618.

         The capitalized terms used and not otherwise defined herein shall have
the same definitions as set forth in the Lease. The provisions of this Lease
Rider shall supersede any inconsistent or conflicting provisions of the Lease.

A. In addition to the rights granted under the Lease, Tenant shall be entitled
to identification signage, together with two other tenants of the Project, on a
monument sign to be constructed in the Common Area of the Project, in accordance
with the Project's sign criteria. In consideration of such sign rights, Tenant
shall pay a fee to Landlord equal to one third (a) of the costs incurred by
Landlord in constructing the monument sign (including without limitation,
design, permitting and hard construction costs). Tenant shall also be obligated
to pay for the cost of Tenant's own signage to be placed on the monument sign
and for the installation, maintenance, repair, and, upon termination or
expiration of the Lease, the removal, of Tenant's sign.

"LANDLORD"   PAC COURT ASSOCIATES, L.P., a California limited partnership

             By:    Banyan Pacific, LLC, a California limited liability company,
                    general partner

                    By:  Banyan Realty Group, LLC, a California
                         limited liability company, managing member

                         By: /s/ George W. Ceithaml
                             George W. Ceithaml, Trustee of the
                             Ceithaml Living Trust #2 dated April 15,
                             1989, managing member

"TENANT"            INTEGRATED INFORMATION SYSTEMS, INC., a Delaware
                    corporation

                    By: /s/ Jeffrey Frankel
                    Its:  Jeffrey Frankel,  Vice President and General Counsel

May 2, 2000

<PAGE>   50
                                LEASE RIDER NO. 5
                               LEASE MODIFICATIONS

         THIS LEASE RIDER is attached to and made a part of that certain Office
Lease dated May 16, 2000, by and between PAC COURT ASSOCIATES, L.P. a California
limited partnership, as "Landlord", and INTEGRATED INFORMATION SYSTEMS, INC., a
Delaware corporation, as "Tenant", for the Premises known as 114 Pacifica, Suite
300, Irvine, California 92618.

         The capitalized terms used and not otherwise defined herein shall have
the same definitions as set forth in the Lease. The provisions of this Lease
Rider shall supersede any inconsistent or conflicting provisions of the Lease.

A.       Section 3.7: No Representations. The following sentence is added after
         Section 3.7:

         Landlord hereby represents and warrants to Tenant as follows:

                           (a) To the best of Landlord's knowledge based on its
                  receipt of a certificate of occupancy (the "C of O") for the
                  Building from the City, Landlord represents that the base,
                  core and shell elements of the Building were in compliance
                  with all Applicable Laws as of the date of the C of O.

                           (b) To the best of Landlord's knowledge, the
                  Restrictions do not prohibit the use of the Premises for
                  general and administrative office uses.

B.       Section 6.8: Hazardous Materials. The following new provision is added
         after Section 6.7:

                  6.8 Landlord hereby represents that, prior to the date of this
         Lease, to Landlord's actual knowledge without duty of independent
         investigation, no Hazardous Materials existed in the Premises or
         Building in violation of any Hazardous Materials Laws, except that
         Landlord makes no representation with respect to the portions of the
         Building which have been leased to other tenants.

C.       Section 7.1: Tenant to Bear Tenant's Share of Excess Project Expenses:
         The following sentence is added after Section 7.1:

         If, as a result of Tenant's examination, Tenant claims that Operating
         Expenses and Property Taxes, in the aggregate, for any fiscal year were
         overstated by five percent (5%) or more, Tenant shall promptly give
         written notice to Landlord after the audit and provide a complete copy
         of the audit report to Landlord. Said notice shall clearly reflect the
         reasons for the disagreement and the amount claimed by Tenant as due to
         Landlord. Tenant and Landlord shall then meet in an effort to resolve
         the differences in their respective findings. If a resolution is not
         reached within twenty (20) days of Tenant's written notice, then the
         parties shall refer the issue to an independent certified public
         accountant, chosen by Landlord and approved by Tenant, to audit the
         Operating Expenses for the period in question. The findings of the
         independent certified public accountant shall be binding on both
         Landlord and Tenant. To the extent that the independent certified
         public accountant's determination of Operating Expenses indicates that
         the expenses reflected on Landlord's statement were overstated by more
         than five percent (5%) of the actual Operating Expenses for the subject
         year, then Landlord shall bear the cost of the audit and shall refund
         all amount of over payment made by Tenant within ten (10) days
         following receipt of the independent certified public accountant's
         determination. If the independent certified public accountant's
         determination of Operating Expenses indicates that the expenses
         reflected on Landlord's statement were not overstated by more than five
         percent (5%) of the actual Operating Expenses for the subject year,
         then Tenant shall bear the cost of the audit.

D.       Section 7.3: Definition of Operating Expenses. The following sentence
         is added after Section 7.3:

         Notwithstanding the foregoing, Operating Expenses shall not include the
         following:

                           (a) Costs for which Landlord is reimbursed by
                  individual tenants of the Building, except for costs
                  represented by Operating Expenses.

May 2, 2000
Page 1 of 4

<PAGE>   51
                           (b) Expenses for repairs and other work occasioned by
                  fire, windstorm or other casualty to the extent the Landlord
                  is reimbursed by insurance proceeds or condemnation award.

                           (c) Overhead and administrative costs of Landlord not
                  directly incurred in the operation and maintenance of the
                  Building, unless otherwise provided in this Lease;

                           (d) Depreciation or amortization of the Building or
                  its contents or components.

                           (e) Cost for alteration and additions that are in the
                  nature of capital improvements (determined in accordance with
                  generally accepted accounting principles) but, notwithstanding
                  the foregoing, Operating Expenses shall include the cost of
                  compliance with any change in any statute, ordinance,
                  regulation, order or other law applicable to the Project
                  coming into effect after the Commencement Date, provided
                  however, any such cost shall be amortized in a commercially
                  reasonable manner, and Operating Expenses shall include such
                  allocable portion for each year included within the Term.

                           (f) Rentals and other related expenses incurred in
                  leasing a heating, ventilation and air conditioning system,
                  elevators, or other items (except equipment not affixed to the
                  Building which is used in providing janitorial or similar
                  services to the Building and, further excepting from this
                  exclusion such equipment rented or leased to remedy or
                  ameliorate an emergency condition in the Building) which if
                  purchased, rather than rented, would constitute a capital
                  improvement not included in Operating Expenses pursuant to
                  this Lease;

                           (g) Expenses incurred in obtaining new tenants or
                  retaining existing tenants, including leasing commissions,
                  legal expenses, advertising, entertaining or promotion,
                  excluding, however, expenses for promotions which benefit all
                  tenants of the Building.

                           (h) Interest, amortization or other costs, including
                  legal fees, associated with any mortgage, loan or refinancing
                  of the Building or any Common Areas, transfer or recordation
                  taxes and other charges in connection with the transfer of
                  ownership in the Building, and rental due under any ground
                  lease relating to the property on which the Building is
                  located.

                           (i) The cost of any item or service which Tenant
                  separately reimburses Landlord or pays to third parties, or
                  which Landlord provides selectively to one or more tenants of
                  the Building, other than Tenant, for which Landlord is
                  reimbursed by such other tenant(s).

                           (j) Any interest or penalty incurred due to the late
                  payment of any operating expense and/or real estate tax.

                           (k) Any personal property taxes of Landlord for
                  equipment or items not used directly in the operation or
                  maintenance of the Building, nor connected therewith.

                           (l) Fees payable by Landlord for management of the
                  Building to the extent such fees are in excess of the greater
                  of three percent (3%) or fees charged by a majority of
                  landlords of comparable buildings in the Irvine Spectrum
                  Center area.

                           (m) Payroll, payroll related and other expenses
                  related to any employees of Landlord above the Building
                  Manager or equivalent operational level, or not working
                  full-time on the management or operation of the Building,
                  provided that such expenses of persons working part-time on
                  the management or operation of the Building may be included if
                  equitably allocated to reflect actual time spent on the
                  Building.

May 2, 2000
Page 2 of 4
<PAGE>   52
                           (n) The cost of overtime or other expense to Landlord
                  in performing work expressly provided in this Lease to be
                  borne at Landlord's expense.

                           (o) All expenses directly resulting from the sole
                  active negligence or willful misconduct of Landlord or
                  Landlord's Agents.

                           (p) All bad debt loss, rent loss or reserve for bad
                  debt or rent loss.

                           (q) Payroll and payroll related expenses for any
                  employees in commercial concessions operated by Landlord.

                           (r) Costs associated with the remediation, as
                  required by applicable Hazardous Materials Laws, of Hazardous
                  Materials released by Landlord or Landlord's Agents.

E.       Section 8.1: Permitted Alterations. The following sentences are added
         at the end of Section 8.1:

         Notwithstanding the foregoing, Tenant shall have the right, without
         Landlord's consent, to make strictly cosmetic, non-structural additions
         and alterations to the interior portions of the Premises which do not
         create a Design Problem and do not cost more than $1,000 ("Cosmetic
         Alterations"), provided that Tenant has given five (5) business days
         prior notice to Landlord and delivered accurate plans and
         specifications. Tenant shall also have the right to install phone,
         computer and telecommunications lines and cabling that do not affect
         the Building's systems and are located entirely within the Premises.
         Upon the termination of this Lease, Tenant shall, at Tenant's expense,
         remove any or all non-structural Alterations installed by or on behalf
         of Tenant (including without limitation, telephone, data transmission,
         fiber-optic and other telecommunications cabling and related
         facilities) and return the Premises to its condition as of the
         Commencement Date of this Lease, normal wear and tear excepted.
         Landlord may, by giving Tenant written notice ninety (90) days before
         the termination of this Lease, require that Tenant refrain from
         removing any or all of the Alterations.

F.       Section 15.11: Limitation of Actions Against Tenant and Landlord. The
         following sentences are added to Section 15.11:

         Any claim, demand or right of any kind by Tenant which is based upon or
         arises in connection with this Lease shall be barred unless Tenant
         commences an action thereon within one (1) year after the date that the
         act, omission, event or default upon which the claim, demand or right
         arises, is actually discovered by Tenant. Tenant waives all statutes of
         limitations providing for a greater period of time for the bringing of
         such action. Any claim, demand or right of any kind by Landlord which
         is based upon or arises in connection with this Lease shall be barred
         unless Landlord commences an action thereon within one (1) year after
         the date that the act, omission, event or default upon which the claim,
         demand or right arises, is actually discovered by Landlord. Landlord
         waives all statutes of limitations providing for a greater period of
         time for the bringing of such action. In no event shall this Section
         15.11 be construed to extend existing statutes of limitations. In
         addition, nothing in this Section 15.11 shall limit the ability of
         Landlord or Tenant to bring an action for contribution or indemnity
         against the other party for tort claims brought by third parties,
         subject to applicable statutes of limitations provisions of Applicable
         Laws.

May 2, 2000
Page 3 of 4
<PAGE>   53
"LANDLORD"   PAC COURT ASSOCIATES, L.P., a California limited partnership

             By:    Banyan Pacific, LLC, a California limited liability company,
                    general partner

                    By:  Banyan Realty Group, LLC, a California
                         limited liability company, managing member

                         By: /s/ George W. Ceithaml
                             George W. Ceithaml, Trustee of the
                             Ceithaml Living Trust #2 dated April 15,
                             1989, managing member

"TENANT"            INTEGRATED INFORMATION SYSTEMS, INC., a Delaware
                    corporation

                    By: /s/ Jeffrey Frankel
                    Its:  Jeffrey Frankel,  Vice President and General Counsel

May 2, 2000
Page 4 of 4

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