Document:

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                                                                   EXHIBIT 10.37

                                      LEASE

                                 BY AND BETWEEN

                             HARBOUR PROPERTIES, LLC
                     A CALIFORNIA LIMITED LIABILITY COMPANY

                                   AS LANDLORD

                                       AND

                       WIRELESS FULFILLMENT SERVICES LLC,
                     A CALIFORNIA LIMITED LIABILITY COMPANY

                                    AS TENANT

                              DATED APRIL 25, 2000

                                       FOR

                                   BUILDING 3

                                   LOCATED AT
                             HARBOUR BUSINESS CENTER
                              RICHMOND, CALIFORNIA
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                                TABLE OF CONTENTS

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

2. DEFINITIONS ...........................................................     2

3. RENT ..................................................................     5

4. LEASE TERM ............................................................     6

5. SECURITY DEPOSIT ......................................................     7

6. COMMON AREA EXPENSES ..................................................     8

7. LANDLORD'S WORK .......................................................     9

8. TENANT'S WORK .........................................................     9

9. USE OF THE PREMISES ...................................................    10

10. ENVIRONMENTAL PROVISIONS .............................................    11

11. (INTENTIONALLY OMITTED) ..............................................    12

12. ALTERATIONS ..........................................................    12

13. SURRENDER OF THE PREMISES ............................................    14

14. HOLDING OVER .........................................................    14

15. REAL PROPERTY TAXES AND ASSESSMENTS ..................................    14

16. UTILITIES AND SERVICES ...............................................    15

17. REPAIR AND MAINTENANCE ...............................................    15

18. LIENS ................................................................    15

19. LANDLORD'S RIGHT TO ENTER THE PREMISES ...............................    16

20. SIGNAGE ..............................................................    16

21. INSURANCE ............................................................    16

22. WAIVER OF SUBROGATION ................................................    18

23. DAMAGE OR DESTRUCTION ................................................    18

24. CONDEMNATION .........................................................    19

25. ASSIGNMENT AND SUBLETTING ............................................    19

26.  DEFAULT .............................................................    21

27. SUBORDINATION AND MORTGAGEE PROTECTION ...............................    23

28. NOTICES ..............................................................    24

29. QUIET ENJOYMENT ......................................................    24

30. TENANT'S STATEMENTS ..................................................    24

31. TRANSFER OF THE PREMISES BY LANDLORD .................................    25

32. LANDLORD'S RIGHT TO PERFORM TENANT'S COVENANTS .......................    25
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33. LIMITATION OF LIABILITY OF LANDLORD ..................................    25

34. BROKERS ..............................................................    25

35. ACCEPTANCE ...........................................................    25

36. MODIFICATION FOR LENDER ..............................................    25

37. GENERAL ..............................................................    25

ADDENDUM TO LEASE

39.  OPTION TO EXTEND TERM
40.  CONDITION PRECEDENT TO LEASE
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                                LIST OF EXHIBITS

EXHIBIT A           Site Plan
EXHIBIT B           Work Agreement
EXHIBIT C           Commencement Date Memorandum
EXHIBIT D           Guaranty of Lease

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                                      LEASE

      THIS LEASE (the "Lease"), dated for reference purposes only as of April
25, 2000, is entered into by and between HARBOUR PROPERTIES, LLC, a California
limited liability company ("Landlord") and WIRELESS FULFILLMENT SERVICES LLC, a
California limited liability company ("Tenant").

      1. BASIC LEASE PROVISIONS. The following Basic Lease Provisions are
summaries set forth for convenience, only, and are qualified in their entirety
by the more detailed provisions contained elsewhere in this Lease:

      1.1 PREMISES. Landlord hereby leases to Tenant, and Tenant hereby leases
from Landlord, the Premises defined in Section 2.17 below and more particularly
described in Exhibit A hereto, together with a non-exclusive right to use the
Common Area of the Project as provided in Section 9.

      1.2 ESTIMATED COMMENCEMENT DATE. February 22, 2001. (See Section 2.6.)

      1.3 TERM. Eight (8) years, commencing upon the Commencement Date as
defined in Section 2.5 below.

      1.4 EXTENSION OPTIONS. Two (2) option periods of five (5) years each, as
described in the Addendum attached to this Lease.

      1.5 USE. Call center and related administrative offices.

      1.6 BASE RENT. The initial monthly Base Rent is $1.23 per rentable square
foot of the Premises (calculated in accordance with the most current BOMA
standards) per month, and shall be increased 2.5% per year as set forth in
Section 3.2 below; provided, that no Base Rent shall be payable with respect to
the first three (3) months of the Term.

      1.7 COMMON AREA EXPENSES. Tenant's estimated initial monthly payment for
Tenant's Percentage of estimated Common Area Expenses shall be $0.20 per
rentable square foot per month for the calendar year in which the Term
commences, subject to adjustment in accordance with Section 6 below.

      1.8 SECURITY DEPOSIT. Landlord hereby acknowledges receipt of Tenant's
check for Seventy Thousand Nine Hundred Seventy-One and 00/100 Dollars
($70,971.00) to be held by Landlord as a security deposit to secure the
performance of Tenant's obligations hereunder pursuant to Section 5 below.

      1.9 PARKING. Tenant shall have the right to utilize up to 3.5 parking
spaces in the Common Area for each 1,000 rentable square feet of the Premises,
on an unreserved, non-exclusive basis. The parking areas shall be located on a
surface lot adjacent to the Building.

      1.10 LEASE GUARANTY. As a condition of Landlord's execution and
performance of this Lease, BRIGHTPOINT, INC., a Delaware corporation
("Guarantor") shall guarantee Tenant's performance of this Lease, by executing
and delivering to Landlord, concurrently with Tenant's execution and delivery of
this Lease, a written Guaranty of Lease substantially in the form attached
hereto as Exhibit D; provided that, if Tenant is purchased by any entity, or
some or all of its employees, or "spun off" by its parent corporation, and after
any such transaction the Tenant is publicly traded and has a net worth not less
than Guarantor's net worth as of the date of the Lease, then Guarantor's duties
and obligations hereunder and in the Guaranty shall terminate automatically and
be of no further force or effect.

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      1.11 ADDRESSES FOR NOTICES. The initial addresses of the parties shall be
as follows, subject to change as provided in Section 28 hereof:

Landlord:                          c/o Bay West Group
                                   2 Henry Adams Street, Suite 450
                                   San Francisco, CA  94103
                                   Fax:  (415) 552-7760
                                   Attn:  Mr. Bill Poland

Tenant:                            Mr. Adam Andersen
                                   Chief Operating Officer
                                   5725 Paradise Point
                                   Corte Madera, CA  94925

With copies to:                    Steven E. Fivel, Esq.
                                   Executive Vice President,
                                   General Counsel
                                   6402 Corporate Drive
                                   Indianapolis, IN  46278

                                   Mark E. Wright, Esq.
                                   Baker & Daniels
                                   300 North Meridian Street
                                   Suite 2700
                                   Indianapolis, IN  46204

Notices to (After Occupancy)       Mr. Adam Andersen
                                   Chief Operating Officer
                                   Building Address
                                   Richmond, CA

With copies to:                    Steven E. Fivel, Esq.
                                   Executive Vice President,
                                   General Counsel
                                   6402 Corporate Drive
                                   Indianapolis, IN  46278

                                   Mark E. Wright, Esq.
                                   Baker & Daniels
                                   300 North Meridian Street
                                   Suite 2700
                                   Indianapolis, IN  46204

      2. DEFINITIONS. The following terms shall be defined as follows for
purposes of this Lease:

      2.1. "BASE RENT" means the Base Rent payable pursuant to Section 3.1, as
adjusted from time to time pursuant to Section 3.2.

      2.2. "BOMA" means Building Owners and Managers Association.

      2.3. "BUILDING" means the one-story concrete tilt-up light industrial
building for research and development and related office space referred to as
Building 3 of the Project containing approximately fifty-seven thousand eight
hundred (57,800) rentable square feet calculated in accordance with the most
current BOMA standards.

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       2.4. "BUILDING SHELL" means a concrete tilt-up light industrial building
shell comprised of hard-troweled finished concrete floors and outside surfaces
of exterior walls; roof with exposed trusses; no HVAC or electrical distribution
other than a main electrical panel and meter adequate to provide 8 watts of
electricity per rentable square foot of the Premises (exclusive of HVAC);
water-tight and weather-resistant as of the date of delivery; with utilities
stubbed to the Premises, and otherwise constructed in accordance with the Work
Agreement.

      2.5. "CITY" means the City of Richmond, Contra Costa County, State of
California.

      2.6. "COMMENCEMENT DATE" means the earliest to occur of the following:

            (a) the seventy-fifth (75th) day after the date that (i) the
Building Shell has been Substantially Completed and (ii) Landlord has delivered
possession of the Building Shell to Tenant for the commencement of construction
of the Tenant Improvements;

             (b) the seventy-fifth (75th) day after the date that the Building
Shell would have been Substantially Completed but for the occurrence of any
Tenant Delays, as determined in good faith by Landlord's architect; or

            (c) the date Tenant fully commences its business operation in the
Premises.

Once the actual Commencement Date has been determined pursuant to the foregoing,
the parties shall execute a Commencement Date Memorandum in the form attached
hereto as Exhibit C.

      2.7. "COMMON AREA" means all areas and facilities within the Project not
subject to, or available for, the exclusive leasing, occupancy or use by other
tenants or occupants of the Project, including, but not limited to, parking
areas, driveways and drive aisles, sidewalks, landscaped areas, service areas,
trash disposal facilities, and similar areas or facilities, subject to
reasonable rules and regulations and changes thereof from time to time made by
Landlord governing the use of the Common Area. The Common Areas are depicted on
the Site Plan attached hereto.

      2.8 "COMMON AREA EXPENSES" means all expenses, costs and disbursements of
every kind and nature that are paid or incurred by or on behalf of Landlord or
any other owner or ground lessee of any portion of the Project in connection
with owning, maintaining, operating, repairing and replacing the Common Area and
other improvements in the Project, including, without limitation, the following:
(i) landscaping and irrigation; (ii) sidewalks and parking areas; (iii) signs
and site lighting; (iv) all utilities provided to the Common Area; (v) sweeping
services, trash removal and pest control; (vi) alterations or improvements
required by governmental laws or regulations, (vii) reasonable premiums for
public liability insurance, (viii) twenty-four (24) hour roving security guard
(not more than one) and/or monitoring cameras and related systems, if any, (ix)
exterior washing and repair of the exterior windows, and periodic painting, of
the Building and all other buildings in the Project; (x) any improvements made
to the Common Area as a labor saving device or to effect other economies in the
operation or maintenance of the Project to the extent that Common Area Expenses
are decreased or that are required under any applicable governmental law or
regulation, such costs to be amortized over a 10-year period together with
interest on the unamortized balance at the Interest Rate, and (xi) depreciation
on and rental paid for machinery and equipment used exclusively for the Project
(amortized in the manner described below). Notwithstanding the foregoing, Common
Area Expenses shall not include (i) expenses included as part of Tenant's
maintenance obligations under Section 17 hereof; (ii) replacement of, or
structural repairs to, the roof or to the exterior walls; (iii) repairs to the
extent covered by insurance proceeds, or paid by Tenant or other third parties;
(iv) Landlord's warranty obligations with respect to the Building Shell; (v)
repairs, replacement or maintenance incurred as a result of the willful
misconduct of Landlord, its agents or employees, or other tenants of the
Project; (vi) expenses incurred at the request of a specific tenant which
benefit only that tenant; (vii) expenses incurred in leasing or procuring
tenants; (viii) legal expenses or costs incident to any disputes or negotiations
with tenants or mortgagees; (ix) interest or principal payments (or late
charges, fees or premiums) on any mortgage or other indebtedness of Landlord;
(x) any management fee in excess of the fair market rate for management of
comparable buildings; (xi) janitorial expenses (except as to Common Areas); and
(xii) any expenses, costs or disbursements related to

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common areas located within another building in the Project. The amortization of
any cost-saving capital improvement shall be done on a straight line basis,
using the reasonably estimated useful life or the approximate annual cost
savings of the cost-saving capital improvement (including interest if financed
by Landlord, at the Interest Rate), as certified in connection with each annual
Common Area Expenses statement in which any such annual amortization charge
shall be included.

      2.9. "COUNTY" means the County of Contra Costa, State of California.

      2.10. "`FOR CONSTRUCTION' WORKING DRAWINGS" means the working drawings,
plans and specifications for the Tenant Improvements prepared and approved in
accordance with Section 4 of the Work Agreement.

      2.11. "HVAC" means the heating, ventilating and air conditioning systems
in the Premises.

      2.12. "INTEREST RATE" means the lesser of ten percent (10%) per annum or
the maximum rate of interest permitted by California or federal law.

      2.13. "LANDLORD'S AGENTS" means the Landlord's authorized agents,
partners, affiliates, and employees.

      2.14. "LANDLORD DELAYS" means any delays regarding Tenant's completion of
the Tenant Improvements caused by the acts or omissions of Landlord or any
person or party acting by, through or under Landlord.

      2.15. "LANDLORD'S WORK" means the design, and construction of the Building
Shell by Landlord in accordance with this Lease and the Work Agreement.

      2.16. "LAWS OR LAW" means all laws, ordinances, statutes, zoning
restrictions, rules, regulations, requirements, orders, rulings or decisions
adopted or made by any governmental body, agency, department or judicial
authority having jurisdiction over the Project, the Premises or Tenant's
activities at the Premises and any covenants, conditions or restrictions of
record which affect the Premises or the Project.

      2.17. "MONTHLY RENT" means, collectively, monthly installments of Base
Rent and Tenant's Percentage of Common Area Expenses due hereunder.

      2.18. "PREMISES" means the entire Building.

      2.19. "PROJECT" means the improved real property commonly referred to as
Harbor Business Center in which the Premises are located, consisting of
approximately 13.48 acres located between Harbor Way South and Marina Way South
in Richmond, California, and depicted in the Site Plan attached hereto as
Exhibit A.

      2.20. "REAL PROPERTY TAXES" means any form of property tax, assessment,
tax on assessments, license, fee, rent tax, levy, penalty (if, but only if, a
result of Tenant's delinquency), voter mandated special tax or other tax (other
than net income, estate, succession, inheritance, transfer or franchise taxes),
now or hereafter existing, and any increases therein as a result of any change
of ownership, Alterations (as defined in Section 12.1 hereof) the passage of
time or otherwise, imposed by any authority having the direct or indirect power
to tax, or by any city, county, state or federal government or any improvement
or other district or division thereof, with respect to the Premises or the
Lease, including without limitation any tax or assessment that is: (i)
determined by the area of the Premises or any part thereof or the rent and other
sums payable hereunder 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 such rent or other sums due under this Lease; (ii) upon any legal or
equitable interest of Landlord in the Premises or any part thereof; (iii) upon
this transaction or any document to which Tenant is a party creating or
transferring any interest in the Premises; (iv) imposed by any improvement or
special assessment district, whether now existing or hereafter created; or (v)
levied or assessed in lieu of, in substitution for, or in addition to, existing
or additional taxes against the Premises whether or not now customary or within
the contemplation of the parties.

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      2.21. "RENT" means Base Rent, Tenant's Percentage of Common Area Expenses,
and all other sums that become due and owing by Tenant under this Lease, of any
kind or nature.

      2.22. "SECURITY DEPOSIT" means that amount paid by Tenant pursuant
to Section 5 below.

      2.23. "SITE PLAN" means the Site Summary attached hereto as Exhibit A.

      2.24. "SUBSTANTIAL COMPLETION" or "SUBSTANTIALLY COMPLETED" means that the
following have occurred (i) the Building Shell has been completed substantially
in compliance with the Work Agreement and all applicable law, codes, statutes,
rules and regulations subject only to minor punch-list items as reasonably
agreed to by Landlord's architect and Tenant's architect which Landlord must
complete in a timely manner, and (ii) the Premises is zoned for Tenant's use (as
permitted hereunder).

      2.25. "TENANT DELAYS" means delays in construction of Landlord's Work
actually caused by and which would not have resulted, but for acts of Tenant or
omissions of Tenant's obligations hereunder, including but not limited to the
following: (a) Tenant's request for special materials, finishes or installations
which are not readily available so long as Landlord advises Tenant of such
unavailability and Tenant still requests the same; (b) Tenant's changes in the
"For Construction" Working Drawings after their approval by Tenant and Landlord;
or (c) interference with Landlord's Work caused by Tenant or Tenant's employees,
representatives, contractors or subcontractors, including, but not limited to,
interference caused by the construction of the Tenant Improvements.

      2.26. "TENANT IMPROVEMENTS" means the interior improvements to the
Building to be designed and constructed by Tenant pursuant to the Work
Agreement.

      2.27. "TENANT'S PERCENTAGE" is initially estimated to be 30.03%
(determined by dividing the estimated number of rentable square feet in the
Premises (57,800) by the estimated total number of rentable square feet in all
buildings to be built in the Project (192,500)), but shall be subject to
revision as determined by Landlord by reason of Landlord's measurement of the
actual rentable square footage contained in the Premises and all the completed
buildings in the Project, once all the buildings to be built in the Project are
completed (all in accordance with the most current BOMA standards).

      2.28. "TENANT'S PROPERTY" means all movable partitions, business and trade
fixtures, machinery and equipment, including, without limitation, communications
equipment and office equipment 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 Premises, and all furniture, furnishings and other
articles of movable personal property owned by Tenant and located in the
Premises.

      2.29. "UNAVOIDABLE DELAYS" means delays in construction of Landlord's Work
or Tenant's completion of the Tenant Improvements caused by strikes, lockouts,
inability to obtain materials (though exercising good faith and best efforts to
obtain the same), subsequently enacted laws, statutes, ordinances and
governmental regulations, floods, earthquakes, acts of God, riots,
insurrections, archaeological findings, court orders, and other similar
occurrences or events beyond Landlord's or Tenant's control, as the case may be;
provided that, in no event, shall Unavoidable Delays include inability to obtain
financing or other monetary failures.

      2.30. "WORK AGREEMENT" means the Work Agreement in the form attached
hereto as Exhibit B entered into between Landlord and Tenant concurrently with
this Lease, providing for the construction of the Building Shell and Tenant
Improvements as set forth therein.

      3. RENT

      3.1 BASE RENT. Tenant shall pay the monthly Base Rent to Landlord for each
month during the Term as specified in Section 1.6, as adjusted pursuant to
Section 3.2 below, subject to any free or reduced rent specified in Sections 1.6
and 2.6. Tenant shall pay Base Rent in advance on or before the first day of
each and every calendar month during the Term. In the event the Term commences
on a day other than that first day of a

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calendar month or ends on a day other than the last day of a calendar month,
then the Base Rent for the first month Base Rent is payable and last fractional
months of the Term shall be appropriately prorated.

      3.2 ANNUAL ADJUSTMENTS TO BASE RENT. Base Rent shall be adjusted during
the Term of this Lease as follows: on each anniversary of the first day of the
calendar month in which the Commencement Date occurs (each such anniversary
being referred to herein as an "Adjustment Date"), the Base Rent payable under
this Lease shall be increased by an amount equal to two and one-half percent
(2.5%) of the Base Rent in effect during the month immediately preceding such
Adjustment Date, which adjusted Base Rent shall remain in effect until the next
succeeding Adjustment Date.

      3.3 REMEASUREMENT OF PREMISES. Tenant acknowledges that the approximate
square footage of the Premises and Building stated above is Landlord's estimate,
only, and that the actual square footage of the completed Premises and Building
will vary therefrom. Upon Substantial Completion of the Building Shell, Landlord
will measure the actual number of rentable square feet in the Building in
accordance with the most current BOMA standards, and such measurement shall
thereafter be used for all purposes of this Lease including, without limitation,
calculating monthly Base Rent, Tenant's Percentage of Common Area Expenses and
the amount of Landlord's TI Allowance. Such remeasured square footage shall be
set forth in the Commencement Date Memorandum.

      3.4 ADDITIONAL RENT. Tenant shall also pay Tenant's Percentage of Common
Area Expenses in accordance with Section 6 below for each calendar month of the
Term and shall pay all other sums required to be paid by Tenant under this Lease
in a timely manner.

      3.5 LATE CHARGES. Tenant acknowledges that late payment by Tenant to
Landlord of Monthly Rent and other charges provided for hereunder will cause
Landlord to incur costs not contemplated by this Lease, the exact amount of such
costs being extremely difficult or impracticable to fix. Such costs include, but
are not limited to, processing and accounting charges, and late charges that may
be imposed on Landlord by the terms of any encumbrance or notes secured by any
encumbrance covering the Premises, or late charges and penalties due to late
payment of Real Property Taxes due on the Premises. Notwithstanding the
foregoing, one (1) time per each calendar year, Tenant shall be accorded a grace
period for the late payment of any Monthly Rent installment (the "Grace Period
Occurrence"). With respect to such Grace Period Occurrence, Tenant shall pay the
applicable Monthly Rent installment within five (5) days after receiving written
notice from Landlord regarding such late Monthly Rent payment before Late
Charges (as defined below) are payable with respect thereto. If Tenant fails to
pay the applicable Monthly Rent installment within five (5) days after receipt
of written notice of the Grace Period Occurrence, or thereafter, if any
installment of Monthly Rent payable by Tenant hereunder is not received by
Landlord within five (5) days after its due date, Tenant shall pay to Landlord
an additional sum equal to six percent (6%) of the amount overdue (the "Late
Charge"). The parties agree that the Late Charge represents a fair and
reasonable estimate of the costs Landlord will incur by reason of the late
payment by Tenant. Landlord's acceptance of any Late Charge shall not constitute
a waiver of Tenant's default with respect to the overdue amount, nor prevent
Landlord from exercising any of the other rights and remedies available to
Landlord.

      3.6 MANNER OF PAYMENT. All Monthly Rent payable hereunder shall be paid in
lawful money of the United States, without prior notice, demand, offset,
deduction or credit.

      4. LEASE TERM

      4.1 COMMENCEMENT DATE. The term of this Lease ("Term") shall commence on
the Commencement Date and, unless sooner terminated or extended as provided in
this Lease, shall continue for a Term of eight (8)

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years thereafter. Tenant agrees that within five (5) days after Landlord's
request, Tenant shall execute and deliver to Landlord a Commencement Date
Memorandum in the form of Exhibit C attached hereto stating the Commencement
Date and the expiration date of the Term, the initial Base Rent and estimated
Common Area Expenses, the actual RENTABLE SQUARE FOOTAGE of the Building,
accepting possession of the Premises and acknowledging, to the best of Tenant's
knowledge and to the extent accurate, compliance by Landlord with all of the
obligations to construct and deliver possession of the Building Shell.

      4.2 TENANT'S OBLIGATIONS. Except for Tenant's obligation to pay Base Rent,
all of Tenant's obligations under this Lease shall commence on the Commencement
Date. The estimated Commencement Date set forth in Section 1.2 above is
Landlord's good faith estimate, only, and is based on assumptions that may or
may not occur. If the actual Commencement Date does not occur until after the
estimated date set forth in Section 1.2, this Lease shall not be void or
voidable, Landlord shall not be in default or otherwise liable to Tenant for any
loss or damage resulting therefrom, and Tenant shall accept possession of the
Premises when delivered by Landlord as set forth above; provided however that,
notwithstanding the foregoing, if the Commencement Date does not occur by
February 22, 2001, then Landlord shall credit Tenant one day free Base Rent for
every day after February 22, 2001, that the Commencement Date has not occurred.
If (i) physical construction of the Building Shell has not commenced by August
1, 2000 (as extended by each day of Tenant Delay) (commencement of physical
construction of the Building Shell includes, but is not limited to, utility
trenching) or such construction does not proceed continuously until completed,
(ii) Landlord has not received the conditional use permit for the Project by
August 31, 2000 (as extended by each day of Tenant Delay), or (iii) the
Commencement Date has not occurred by May 1, 2001(as extended by each day of
Tenant Delay and acts of God), then Tenant shall have the right to terminate
this Lease by written notice to Landlord, in which event Landlord shall refund
to Tenant all amounts paid to Landlord by Tenant and the parties hereto shall
have no further duties or obligations under this Lease. Notwithstanding the
foregoing, Landlord shall credit Tenant two days of free Base Rent for every day
after August 1, 2000 (until August 31, 2000), that Landlord has not received the
conditional use permit for the Project, so long as such delay was not caused by
a Tenant Delay.

      4.3 EARLY ENTRY. Tenant shall be provided access to the Premises
approximately thirty (30) days prior to the completion of the Building Shell for
the purpose of commencing its Tenant Improvements and installing furniture,
fixtures, cabling, telecommunications facilities and other systems. Any such
early entry shall be at Tenant's sole risk subject to all the terms and
provisions hereof. Tenant's early entry shall not interfere with Landlord's
construction of the Building Shell, cause labor difficulties, or any other
disruption which would create a delay; (ii) Tenant shall pay for and provide
evidence of liability insurance conforming to the requirements of this Lease;
and (iii) Tenant shall pay utility charges based on Tenant's actual use
reasonably allocated by Landlord to Tenant. Landlord shall have the right to
impose such additional conditions on Tenant's early entry as Landlord deems
reasonably appropriate, and shall have the further right to require that Tenant
execute an early entry agreement containing such additional conditions prior to
Tenant's early entry.

      5. SECURITY DEPOSIT. Tenant has deposited with Landlord the sum of $70,971
as the Security Deposit for the full and faithful performance of every provision
of this Lease to be performed by Landlord. On or after each Adjustment Date
specified in Section 3.2 above, upon demand by Landlord, Tenant shall deposit
such additional sums as may be necessary to increase the Security Deposit to an
amount equal to one month's Base Rent as then in effect. If Tenant defaults with
respect to any provision of this Lease (as set forth in Section 26 hereof) and
appropriate notice is provided and cure periods have lapsed, Landlord may apply
all or any part of the Security Deposit for the payment of any Rent or other sum
in default, the repair of such damage to the Premises or the payment of any
other amount which Landlord may spend or become obligated to spend by reason of
Tenant's default or to compensate Landlord for any other loss or damage which
Landlord may suffer by reason of Tenant's default, to the full extent permitted
by law and in Section 26 hereof. If any portion of the Security Deposit is so
applied, Tenant shall, within ten (10) days after written demand therefore,
deposit cash with Landlord in an amount sufficient to restore the Security
Deposit to its original amount, and Tenant's failure to do so shall be a default
of this Lease. Landlord shall not be required to keep the Security Deposit
separate from its general funds and may commingle it with its other assets, and
Tenant shall not be entitled to interest on the Security Deposit. If Tenant is
not otherwise in default, the Security Deposit or any balance thereof shall be
returned to Tenant within thirty (30) days of termination of this Lease.

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      6. COMMON AREA EXPENSES. During the entire Term, Tenant shall pay to
Landlord, as part of the Monthly Rent, Tenant's Percentage of the Common Area
Expenses attributable to each calendar year or portion thereof during the Term,
payable as follows:

      6.1 INITIAL COMMON AREA EXPENSES. On the Commencement Date and on the
first day of each month during the term thereafter, Tenant shall pay to Landlord
Tenant's Percentage of the estimated Common Area Expenses on a monthly basis as
specified in Section 1.7 above. Landlord hereby disclaims any representation or
warranty of any kind, express or implied, regarding its estimate of the amount
of the actual Common Area Expenses to be incurred in connection with the
Project, either during the first year of the Term or any subsequent year and
Tenant hereby waives and releases any and all claims, demands, offsets and
causes of action of any kind or nature whatsoever based upon Landlord's
estimation of the amount of Common Area Expenses in comparison to actual Common
Area Expenses. Tenant shall in any event be absolutely and unconditionally
obligated to pay Tenant's Percentage of all Common Area Expenses actually
incurred during the Term.

      6.2 ANNUAL ADJUSTMENTS. During the last month of each calendar year (or as
soon thereafter as practicable), Landlord shall give Tenant notice of Landlord's
good faith estimate of Tenant's Percentage of the Common Area Expenses for the
following calendar year during the Term. On or before the first day of each
month during the following calendar year, Tenant shall pay to Landlord, as part
of the Monthly Rent, one-twelfth (1/12) of such new estimated amount; provided,
that if Landlord fails to give such notice in the last month of the prior year,
then Tenant shall continue to pay on the basis of the prior year's estimate
until the first day of the calendar month next succeeding the date such notice
is given by Landlord, and from the first day of the calendar month following the
date such notice is given, Tenant's payments shall be adjusted so that
Landlord's estimated amount for that calendar year will be fully paid by the end
of that calendar year. If at any time or times Landlord determines that Tenant's
Percentage of Common Area Expenses for the current calendar year will vary from
its estimate given to Tenant, Landlord, by not less than thirty (30) days'
notice to Tenant, may revise its estimate for such calendar year, and subsequent
payments by Tenant for such calendar year shall be based upon such revised
estimate.

      6.3 ANNUAL RECONCILIATION. As soon as reasonably practicable after the
beginning of each calendar year during the Term, Landlord shall deliver to
Tenant a statement (the "Expense Statement") of Tenant's Percentage of the
actual Common Area Expenses for the preceding calendar year (which shall include
a detailed itemization of the Common Area Expenses and calculation of Tenant's
Percentage of the Common Area Expenses). If the Expense Statement shows an
amount owing by Tenant that is less than the payments for the preceding calendar
year previously made by Tenant, Landlord shall credit such amount to the next
payment(s) of Monthly Rent due under this Lease (or in the case of the last year
of the term, refund Tenant for the amount of such overpayment). If the Expense
Statement shows an amount owing by Tenant that is more than the payments for the
preceding calendar year previously made by Tenant, Tenant shall pay the
deficiency to Landlord within thirty (30) days after delivery of the Expense
Statement.

      6.4 RIGHT TO AUDIT. If, within thirty (30) days after Tenant's receipt of
the Expense Statement, Tenant notifies Landlord that Tenant desires to audit or
review all materials, invoices or receipts related to the Expense Statement,
Landlord shall cooperate with Tenant to permit such audit or review during
normal business hours, and all costs and expenses incurred in connection
therewith shall be paid by Tenant; provided, however, in lieu of permitting such
audit or review by Tenant, Landlord shall have the right in its sole discretion
to provide such an audit or review prepared by a certified public accountant of
any Big 5 firm at Tenant's choosing and expense. The failure of Tenant to notify
Landlord that Tenant desires an audit within thirty (30) days of Tenant's
receipt of the Expense Statement shall constitute an acceptance by Tenant of the
Expense Statement and a waiver by Tenant of its right to audit for such calendar
year. If Tenant commences an audit in accordance with this Section, then such
audit and the Tenant's auditor's report must be completed within sixty (60) days
of Tenant's notice to Landlord of Tenant's desire to audit, and failure of
Tenant to complete the audit within such sixty (60) day period shall constitute
an acceptance by Tenant of the Expense Statement for such calendar year. If
Landlord does not agree on the results of Tenant's auditor's report within
thirty (30) days following delivery of Tenant's auditor's report to Landlord,
then Landlord may commence arbitration with respect to the matters disputed in
Tenant's audit by notice to Tenant ("Arbitration Notice"). The failure of
Landlord to provide an Arbitration Notice within sixty (60) days of Tenant's
delivery of the Tenant's auditor's report to Landlord shall constitute a

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<PAGE>   12
waiver by Landlord of its right to arbitrate hereunder, and except for such
adjustments as have been agreed to, the Tenant's auditor's report shall govern
for such calendar year shall be conclusive and binding to on both parties.
Within thirty (30) days of the Arbitration Notice, Landlord and Tenant shall
jointly select an arbitrator, who shall be unaffiliated in any manner with
either Landlord or Tenant and shall have been active over the five (5) year
period ending on the date of such appointment in the leasing of comparable
commercial properties in the vicinity of the Building. Neither Landlord nor
Tenant shall consult with such arbitrator as to his or her opinion as to the
disputed matters prior to the appointment. The determination of the arbitrator
shall be limited solely to issues raised by Tenant's auditor's report or by
Landlord's response to Tenant's auditor's report. Such arbitrator may hold
hearings and require such briefs as the arbitrator, in his or her sole
discretion, determines is necessary. The decision of the arbitrator shall be
binding upon Landlord and Tenant. If Landlord and Tenant fail to agree upon and
appoint such arbitrator, then the appointment of the arbitrator shall be made by
the American Arbitration Association. Additionally, if it is subsequently
determined that Landlord has overcharged Tenant by more than five percent (5%),
as agreed to by Landlord or as determined by Tenant's auditor or the arbitrator,
as applicable, in any calendar year regarding Tenant's Percentage of Common Area
Expenses, then Landlord shall be responsible for the costs associated with such
audit and arbitration, otherwise, Tenant shall be responsible for such costs.

      7. LANDLORD'S WORK

      7.1 BUILDING SHELL. Landlord at its sole expense shall construct the
Building Shell in compliance with (i) existing federal, state and local codes,
statutes, laws, rules and regulations, including, but not limited to, those
pertaining to seismic safety, handicapped access, Environmental Laws (as defined
below) and building codes applicable to a light industrial building for research
and development and related office uses, and (ii) the terms, conditions and
provisions of Section 1 of the Work Agreement

      7.2 TENANT IMPROVEMENT ALLOWANCE. Landlord shall also contribute the sum
of $29.00 per rentable square foot of the Premises (the "TI Allowance") toward
the costs incurred by Tenant in constructing the Tenant Improvements, payable
upon certification by Tenant's architect and Landlord's architect that the
Tenant Improvements have been Substantially Completed in accordance with the
Work Agreement, a certificate of occupancy for the Premises has been issued by
the City, and satisfaction of all other conditions to the disbursement of the TI
Allowance as set forth in the Work Agreement.

      7.3. CONDITION OF PREMISES. Tenant acknowledges that, except as expressly
set forth herein, neither Landlord nor Landlord's Agents have made any
representations or warranties as to the suitability or fitness of the Premises
for the conduct of Tenant's business, nor has Landlord agreed to undertake any
Alterations or construct any other improvements to the Premises except as
expressly provided in this Lease, Tenant shall be conclusively deemed to have
accepted the Premises "AS IS" in the condition existing on the date Landlord
delivers possession of the completed Building Shell (subject to (i) Landlord's
obligation to complete punch list items and (ii) latent defects in design,
material and/or workmanship), and to have waived all claims relating to the
condition of the Premises.

      7.4 RENT CREDIT. If because of an Unavoidable Delay the Tenant
Improvements cannot be completed by the seventy-fifth (75th) day after the
Building Shell has been Substantially Completed and Landlord has delivered
possession of the Building Shell to Tenant for the commencement of construction
of the Tenant Improvements, for each day of Unavoidable Delay, up to a maximum
of thirty (30) days, Tenant shall receive a fifty percent (50%) day-for-day rent
credit for Base Rent payable during the fourth (4th) month of the term of this
Lease, unless such Unavoidable Delay arises out of or is related to Landlord's
obligations hereunder, in which event Tenant shall receive a one hundred percent
(100%) day-for-day rent credit for Base Rent for the duration of such
Unavoidable Delay.

      8. TENANT'S WORK.

      8.1 TENANT IMPROVEMENTS. Upon Landlord's delivery of possession of the
Substantially Completed Building Shell (or Tenant's early entry, as applicable,
in accordance with Section 4.3 hereof), Tenant shall proceed to construct its
Tenant Improvements in accordance with the terms of the Work Agreement and
Section 18 below. The construction of such initial improvements shall be
governed by the terms of the Work Agreement and not

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<PAGE>   13
Section 12 (Alterations). All Tenant Improvements shall be and become the
property of Landlord upon installation and shall not be deemed Tenant's
Property.

      8.2 TENANT'S PROPERTY. Tenant shall, at its own cost and expense, provide,
install and maintain in good condition any necessary trade fixtures, equipment
and furniture in the Premises. Landlord reserves the right to reasonably approve
or disapprove of curtains, draperies, shades, paint or other such permanent
installations visible from outside the Premises on wholly aesthetic grounds.
Such installations (other than those that are approved in accordance with
Section 4 of the Work Agreement) must be submitted for Landlord's written
approval prior to installation, or Landlord may remove or replace such items at
Tenant's sole expense. Tenant's Property shall be removed by Tenant upon
expiration of the Term. Tenant shall repair, at Tenant's sole expense, all
damage caused by the installation or removal of trade fixtures, equipment,
furniture or temporary improvements. If Tenant fails to remove any of Tenant's
Property within five (5) days after termination of this Lease, Landlord may keep
and use them or remove any or all of them and cause them to be stored or sold in
accordance with applicable law.

      9. USE OF THE PREMISES.

      9.1 PERMITTED USES. Tenant shall use the Premises solely for the operation
of a call center and general office activities incidental thereto, and for no
other use without the prior written consent of Landlord, which may be granted or
withheld in Landlord's sole and absolute discretion.

      9.2 COMPLIANCE WITH LAW. Tenant shall not use the Premises or suffer or
permit anything to be done in or about the Premises which will in any way
conflict with any Laws now in force or which may hereafter be in force; provided
that Landlord represents and warrants to Tenant that Tenant's use of the
Premises, as described in Section 1.5, will not violate current local zoning
ordinances governing the Project. Tenant shall place no loads upon the floors,
walls or ceilings in excess of the maximum designed load as provided for in the
Working Drawings, or which would endanger the structure, nor place any harmful
liquids in the drainage systems; nor dump or store waste materials or refuse or
allow such to remain outside the Building Shell, except in the enclosed trash
areas provided. Except for Tenant's delivery trucks and their contents, Tenant
shall not store or permit to be stored or otherwise place any other material of
any nature whatsoever outside the Building.

      9.3 USE OF COMMON AREAS. Tenant shall have the right to use the Common
Areas for vehicular and pedestrian ingress and egress and to park the number of
automobiles or similar size vehicles in the Common Areas as specified in the
Basic Lease Provisions, on a non-exclusive unreserved basis in common with other
tenants of the Project and subject to such rules and regulations as Landlord
reasonably may adopt on an indiscriminate basis from time to time. Tenant shall
also have the right to temporarily park vehicles in and adjacent to the loading
docks of the Building for purposes of loading and unloading such vehicles, so
long as such vehicles do not (a) interfere with the free and unimpeded flow of
traffic in and through the Common Areas or (b) violate or compromise any fire or
other life safety requirements.

      9.4 ROOF INSTALLATIONS. Subject to the provisions of this Section 9.4,
Tenant shall have the right to install, operate, and maintain a standby
emergency power generator, satellite dishes and supplemental air conditioning
unit, together with associated cabling, hoses, systems and equipment, in the
locations on the roof of the Building approved by Landlord in its reasonable
discretion as part of the approved TI Plans, and subject to the following
conditions:

            (a) No such installation of equipment, fixtures, systems, hoses or
      cables pursuant to this Section 9.4 shall made by Tenant without the prior
      written consent of Landlord, which shall not be unreasonably withheld so
      long as it complies with Landlord's reasonable requirements concerning
      architectural design, roof integrity, and the requirement that the
      installation or removal of the equipment, fixtures, systems, hoses or
      cables pursuant to this Section 9.4 will not adversely affect the weather
      tightness or the structure of the Building. Tenant shall obtain all
      necessary governmental permits required for any installation, alteration,
      addition, or improvement approved by Landlord and shall comply with all
      applicable governmental law, regulations, ordinances, and codes.

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<PAGE>   14
            (b) Tenant shall, at its sole cost, immediately repair and restore
      to its prior condition any damage to the roof or other portions of the
      Premises, the Building or the Project caused by the installation,
      operation or maintenance of any equipment, systems, fixtures and cables
      pursuant to this Section. If Tenant fails to repair and restore such
      damage within a reasonable time, after written notice from Landlord to
      Tenant, Landlord shall have the right to repair and restore such damage
      and receive reimbursement from Tenant of all costs incurred by Landlord
      together with interest at the Interest Rate.

            (c) Any equipment or fixtures installed on the roof of the Building
      pursuant to this Section 9.4, shall at Landlord's option become the
      property of Landlord on the expiration or earlier termination of the Term;
      provided, however, that Landlord shall have the right to require Tenant to
      remove all or any portion thereof at Tenant's cost. If Tenant is required
      by Landlord, to remove such equipment from the roof upon termination of
      this Lease, Tenant shall repair and restore any damages to the roof or
      other portions of the Building caused by such removal.

      10. ENVIRONMENTAL PROVISIONS.

      10.1 USE OF HAZARDOUS SUBSTANCES. Landlord has delivered to Tenant, prior
to the execution date hereof, all environmental assessments and reports
performed with respect to the Premises which are in Landlord's possession or to
which Landlord has access (the "Environmental Reports"). Other than the
Environmental Reports, Landlord does not possess any other reports based on
assessments, investigations or interpretations relating to the environmental
condition of the Premises. Tenant shall not use, store, dispose, release,
discharge, transport or generate (collectively "Use of Hazardous Substances")
any Hazardous Substances (as defined below), in, on, to, under, from or about
the Premises or the Project without Landlord's prior written consent, which
consent may be granted on conditions or withheld in Landlord's sole and absolute
discretion. Tenant warrants and agrees that if Landlord grants its consent to
Tenant's Use of Hazardous Substances, such Use of Hazardous Substances shall be
conducted in strict accordance with all Environmental Laws (as defined below)
and prudent business practices. Any consent or approval by Landlord of Tenant's
Use of Hazardous Substances shall not constitute an assumption of risk
respecting the same nor a warranty or certification by Landlord that Tenant's
proposed Use of Hazardous Substances is safe or reasonable or in compliance with
Environmental Laws. Tenant shall maintain current all permits required for its
operations, including, without limitation, those for the Use of Hazardous
Substances. Tenant shall keep and maintain the Premises in compliance with all,
and shall not cause or permit the Premises and the activities conducted thereon
by Tenant to be in violation of any, Environmental Laws. Tenant shall not
undertake any remedial action with respect to any release of Hazardous
Substances or to comply with any violation of any Environmental Law without
obtaining the prior written consent of Landlord. If Tenant's use of Hazardous
Substances results in an increase in the premiums of any insurance that Landlord
is required to maintain under this Lease, then Tenant shall pay the amount of
such increased premiums. Additionally, Landlord may require that Tenant procure,
at Tenant's sole cost and expense, additional insurance that specifically covers
loss or damage to persons or property that may result from Tenant's use of such
Hazardous Substances.

      10.2 ENVIRONMENTAL INDEMNITY. Tenant shall indemnify, defend (by counsel
reasonably acceptable to the indemnified party), protect and hold Landlord and
its partners, members, agents, employees, affiliates, successors and assigns
free and harmless from and against any and all claims, liabilities, penalties,
forfeitures, losses or expenses (including, without limitation, attorneys' fees
and costs and court costs) or death of or injury to any person or damage to any
property whatsoever, arising from or caused in whole or in part, directly or
indirectly, by Tenant's Use of Hazardous Substances to, in, on, under, about or
from the Premises or Project or Tenant's failure to comply with any
Environmental Law. Notwithstanding anything to the contrary contained in the
preceding sentence, if a final, binding judicial, administrative or arbitration
determination is made whereby Tenant's Use of Hazardous Substances or Tenant's
failure to comply with any Environmental Law is deemed to be only partially
responsible or accountable for any claims or other losses and liability covered
by this Section 10.2, then Tenant's indemnity obligations under this Section
10.2 shall only apply to the extent Tenant is deemed responsible or accountable.
For purposes of the indemnity provisions hereof, any acts or omissions of
Tenant, or by employees, agents, assignees, contractors or subcontractors of
Tenant or others for whose acts Tenant is legally responsible or liable (whether
or not they are negligent, intentional, willful or unlawful) shall be strictly
attributable to Tenant. This indemnification shall include without limitation
(a) personal injury claims, (b) the payment of liens, (c) diminution in the
value of the Premises or Project, or the property on which they are located,

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(d) damages for the loss or restriction on use of the Premises or Project, (e)
sums paid in settlement of claims, (f) reasonable attorneys' fees and costs,
consulting fees and costs and expert fees and costs, (g) the cost of any
investigation of site conditions, and (h) the cost of any repair, clean-up,
health or other environmental assessments, remedial, closure, removal or
restoration work, decontamination or detoxification if required by any
governmental or quasi-governmental agency or body having jurisdiction or deemed
necessary in Landlord's reasonable judgment. The indemnification contained
herein shall survive the expiration or earlier termination of this Lease.

      10.3 DEFINITIONS. As used in this Lease, the term "Hazardous Substances"
shall mean hazardous wastes, hazardous chemicals, biological and/or medical
waste, flammable or explosive materials, radioactive materials, toxic materials
or related materials (whether potentially injurious to persons or property and
whether potentially injurious by themselves or in combination with other
materials), including, but not limited to, petroleum products or fractions
thereof and any waste, chemical, substance or material now or hereafter
determined by any federal, state or local governmental agency or authority
having jurisdiction to be hazardous to human health or the environment or which
is or becomes regulated by such agency or authority (including, but not limited
to, those materials listed in the United States Department of Transportation
Hazardous Materials Table as amended from time to time), which were released to
the environment, including, without limitation, the soil, groundwater and/or
air, at the Premises or Shopping Center. As used in this Lease, the term
"Environmental Laws" shall mean any and all present and future federal, state
and local laws (whether under common law, statute, rule, regulation or
otherwise), requirements under permits issued with respect thereto, and other
requirements of governmental authorities relating to the environment or to any
Hazardous Substance (including, without limitation, the Comprehensive
Environmental Response, Compensation, and Liability Act of 1980, as heretofore
or hereafter amended from time to time). In no event shall the definition of
Hazardous Substances be deemed to include janitorial supplies customarily used
in the maintenance of commercial buildings similar to the Building.

      10.4 NOTICE OF CLAIMS. Landlord and Tenant shall immediately advise the
other in writing of, and provide the other with a copy of: (1) any notices of
violation or potential or alleged violation of any Environmental Law which are
received by either of them from any governmental agency; (2) any and all
inquiry, investigation, enforcement, clean-up, removal or other governmental or
regulatory actions instituted or threatened relating to either of them or the
Premises or Project; and (3) all claims made or threatened by any third party
against either of them or the Premises or Project relating to any Hazardous
Substances.

      10.5 UNDERGROUND STORAGE TANKS. The approved Working Drawings may, at
Tenant's election, include a diesel fuel storage tank of a size and location
reasonably approved by Landlord ("Storage Tank"), and Tenant shall have the
exclusive right and obligation to use, maintain and repair the Storage Tank
during the Term of the Lease, at the Tenant's sole cost and expense, and to
receive, store and dispense products in and from such tanks solely for use by
Tenant in strict conformity with (a) conditions or other rules and orders of
governmental agencies, (b) any permits issued for the use of such Storage Tank
by any authorized governmental agency, copies of which permits shall be
delivered to the Landlord within 30 days of issuance, and (c) all terms and
conditions of this Lease. The Storage Tank must be placed above ground unless
Landlord and Tenant reasonably agree that it is not feasible. Tenant shall
deliver to Landlord, on a periodic basis and at its sole cost and expense, the
results of monitoring of any such Storage Tank as may be reasonably required by
Landlord. The Tenant's obligations to repair and maintain the Building, as set
forth in Section 17, and to insure the Premises as set forth in Section 21,
shall extend to any such Storage Tank. The indemnity contained in this Section
10 shall also apply to such Storage Tank, for the benefit of the Landlord and
Landlord's Agents. Within sixty (60) days of the expiration or termination of
this Lease, Tenant, at its sole cost, shall remove any Storage Tank, and
remediate any adverse conditions resulting therefrom in strict conformity with
rules and orders of all applicable governmental agencies.

      11. (INTENTIONALLY OMITTED)

      12. ALTERATIONS

      12.1 MINOR NON-STRUCTURAL ALTERATIONS. After completion of the initial
Tenant Improvements by Tenant pursuant to the Work Agreement, Tenant shall not
make or permit any further alterations, additions or improvements (including
without limitation, lighting, HVAC, life safety, electrical, partitioning and
carpentry installations) (collectively, "Alterations") in, on or about the
Premises, except for minor non-structural Alterations such as counters, shelves
and other trade fixtures necessary for Tenant's use of the Premises and other

                                       12
<PAGE>   16
non-structural Alterations not exceeding Five Thousand and no/100ths Dollars
($5,000.00) in cost, per alteration, without the prior written consent of
Landlord. All such Alterations shall, at Landlord's written request, be removed
from the Premises by Tenant upon the termination of the Lease.

      12.2 OTHER ALTERATIONS. Notwithstanding Section 12.1, without the prior
written consent of Landlord, which may be granted or withheld in Landlord's sole
discretion, Tenant shall not make any (i) alterations to the exterior of the
Building; (ii) alterations to or penetrations of the roof of the Building; (iii)
alterations visible from outside the Building except as permitted in Section
9.4; or (iv) any Alterations of a structural nature. Otherwise, Tenant shall
have the right to make non-structural Alterations only with Landlord's prior
written consent, which shall not be unreasonably withheld, and only in
accordance with plans and specifications reasonably approved by Landlord in
writing. All such Alterations shall be installed by a licensed contractor, at
Tenant's sole expense, in compliance with all applicable Laws and permit
requirements, shall be done in a good workmanlike manner conforming to quality
and design with the Premises existing as of the Commencement Date, and shall not
diminish the value of either the Building or the Premises. Unless otherwise
agreed to in writing by Landlord all such Alterations made by Tenant shall be
and become the property of Landlord upon installation and shall not be deemed
Tenant's Property; provided, however, that Landlord may, at Landlord's option
exercised in writing by Landlord and as part of the Landlord's approval of any
such Alterations, require that Tenant, at Tenant's expense, remove any and all
Alterations installed by Tenant and return the Premises to their condition as of
the Commencement Date of the Lease, normal wear and tear excepted and subject to
the provisions of Section 23. If Landlord does not condition its approval on the
requirement that Tenant remove such Alterations, then, in no event shall Tenant
be required to remove the same at the termination of the Lease. In no event
shall any approvals given by Landlord under this Lease constitute any warranty
by Landlord to Tenant of the adequacy of the design, workmanship or quality of
such work or materials for Tenant's intended use or impose any liability upon
Landlord in connection with the performance of such work.

      12.3 COMPLIANCE WITH LEGAL REQUIREMENTS. Tenant shall, at its sole cost
and expense, promptly comply with all Laws now in force or which may hereafter
be in force ("Laws"), with the requirements of any board of fire underwriters or
other similar body now or hereafter constituted, with any direction or occupancy
certificate issued pursuant to any law by any public officer or officers, as
well as the provisions of all recorded documents affecting the Premises, insofar
as they relate to or affect the use or occupancy of the Premises or any elements
of the Premises that Tenant is obligated to maintain under this Lease. Tenant's
obligation to comply with Laws shall include making such alterations, additions
and/or capital improvements to the Premises as may be necessary to bring the
same into compliance with applicable Laws, as the same may be enacted, amended
or interpreted from time to time during the Term ("Compliance Changes"). All
Compliance Changes shall be subject to the other terms and conditions of this
Lease that govern alterations. Landlord and Tenant intend that Tenant shall be
responsible for Compliance Changes regardless of the amount of the cost of such
compliance relative to the total consideration to be paid by Tenant under this
Lease or the duration of the term. The parties have included this obligation and
have expressly allocated the cost of Compliance Changes based on the rental rate
and other consideration given to Tenant under this Lease. Tenant acknowledges
that Landlord would have demanded a higher rental rate absent this allocation of
Compliance Changes. Tenant agrees that the implementation of Compliance Changes
may interfere with its quiet enjoyment of the Premises, but such interference
shall not excuse Tenant from its compliance obligations nor its other
obligations under this Lease. Compliance Changes shall include, without
limitation, changes necessitated by future amendments or additions to the
American with Disabilities Act, laws concerning the structural integrity of the
Premises and the Building such as seismic retrofits, and all requirements
relating to Hazardous Substances (as hereafter defined), fire or life safety
systems and similar requirements. Tenant shall indemnify, defend (by counsel
reasonably acceptable to Landlord) and hold harmless Landlord from all claims,
causes of action, liabilities, penalties, fines, damages, losses or expenses
(including reasonable attorneys' fees and costs and court costs) threatened
against or incurred by Landlord as a result of Tenant's failure to comply with
this Section 12.3. Notwithstanding anything to the contrary set forth herein,
Tenant shall be responsible for a portion of the expenses associated with
Compliance Changes arising during the last three (3) years of the Term
calculated by multiplying the total of such expenses by a fraction, the
numerator being the number of months remaining in the Term (including any
exercised options), and the denominator being the number of months in the full
Term (including any previously exercised options), calculated as of the date
such Compliance Changes arise. In association therewith, Tenant shall forfeit
its right to exercise unexercised extension options, as permitted under Section
39.1 of the Addendum to this Lease, if Tenant exercises its right to

                                       13
<PAGE>   17
pay only a percentage of the expenses associated with the Compliance Changes as
provided in the foregoing sentence. This indemnity obligation shall survive the
expiration or earlier termination of this Lease.

      12.4 NOTICE TO LANDLORD. Before the actual commencement of any work for
which a claim or lien may be filed, Tenant shall give Landlord notice of the
intended commencement date a sufficient time before that date to enable Landlord
to post notices of non-responsibility or any other notices which Landlord deems
necessary for proper protection of Landlord's interest in the Premises, Building
or the Project, and Landlord shall have the right to enter the Premises and post
such notices at any reasonable time. Landlord may require at Landlord's sole
option, that Tenant provide to Landlord, at Tenant's expense, a lien and
completion bond in an amount equal to at least one and one-half (1 -1/2) times
the total estimated cost of any Alterations to be made in or to the Premises, to
protect Landlord against any liability for mechanic's and materialmen's liens
and to insure timely completion of the work.

      13. SURRENDER OF THE PREMISES. Upon 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 fire or other
casualty excepted, with all interior walls repaired if marked or damaged, all
carpets shampooed and cleaned, the HVAC equipment serviced and repaired by a
reputable and licensed service firm, and all uncarpeted floors cleaned and
waxed. Tenant shall remove from the Premises all of Tenant's Alterations
required to be removed pursuant to Section 12, and repair any damage and perform
any restoration work caused by such removal. If Tenant is then in default of any
of its obligations to pay Rent or any other monetary sums to Landlord hereunder,
Tenant shall only remove such Alterations and Tenant's Property as specified in
written notice from Landlord to Tenant. If Tenant fails to remove such
Alterations and Tenant's Property within ten (10) days after expiration of the
Term or 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 be liable to Landlord for costs of removal of any such Alterations and
Tenant's Property and storage and transportation costs of same, and the cost of
repairing and restoring the Premises, together with interest at the Interest
Rate from the date of expenditure by Landlord. If the Premises are not so
surrendered at the termination of this Lease, Tenant shall indemnify Landlord
and its Agents against all costs, claims, loss or liability resulting from delay
by Tenant in so surrendering the Premises, including, without limitation, any
claims made by any succeeding tenant, losses to Landlord due to lost
opportunities to lease to succeeding tenants, and attorneys' fees and costs.

      14. HOLDING OVER. If Tenant remains in possession of all or any part of
the Premises after the expiration of the Term, with the express or implied
consent of Landlord, such tenancy shall be month-to-month only and shall not
constitute a renewal or extension for any further term. In such event, Base Rent
shall be increased to an amount equal to one hundred fifty percent (150%) of the
Base 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. Such month-to-month tenancy shall be subject to every other term,
condition and covenant contained herein.

      15. REAL PROPERTY TAXES AND ASSESSMENTS

      15.1 REAL PROPERTY TAXES, PAYMENT BY TENANT. Tenant shall pay all Real
Property Taxes and personal property taxes levied against and due and payable
with respect to the Premises and Tenant's Property during the Term as they shall
respectively become due and payable. Landlord agrees to forward to Tenant all
notices and tax bills pertaining to the Premises upon receipt. Within thirty
(30) days after Tenant receives the notice and tax bill from Landlord, Tenant
shall provide Landlord with satisfactory evidence that such taxes and
assessments have been paid in full. If Tenant shall fail to pay any Real
Property Taxes before penalties and/or interest are accrued, Landlord shall have
the right, but not the obligation, to (i) pay the same, in which case Tenant
shall immediately repay such amount to Landlord including interest at the
Interest Rate from the date paid by Landlord until the date of payment by
Tenant; or (ii) exercise any and all remedies available to Landlord pursuant to
Section 26.

      15.2 SEPARATE PARCEL. If the Premises are not assessed as a separate tax
parcel, then Landlord shall reasonably, equitably and in good faith apportion
the Real Property Taxes assessed against the real property which includes the
Premises, and Tenant shall pay the amount of Real Property Taxes apportioned to
the Premises.

                                       14
<PAGE>   18
      15.3 PRORATION. Tenant's liability to pay Real Property Taxes shall be
prorated on the basis of a 360-day year to account for any fractional portion of
a fiscal tax year included at the commencement or expiration of the Term. If
this Lease terminates on a date earlier than the end of a fiscal tax year,
Landlord shall deliver to Tenant a statement setting forth the amount of Real
Property Taxes to be paid by Tenant adjusted to the date of termination which
shall be paid within five (5) days of such receipt.

      16. UTILITIES AND SERVICES. Tenant shall be responsible for and shall pay
promptly all charges for water, gas, sewer rental, sewer utilization surcharges,
electricity, telephone, data communication, refuse pickup, janitorial service
and all other utilities, materials and services furnished directly to or used by
Tenant in, on or about the Premises during the Term, together with any taxes
thereon. Landlord shall not be liable in damages or otherwise for any failure or
interruption of any utility service furnished to the Premises, except that
resulting from the acts or omission of Landlord or anyone acting by, through or
under Landlord. Notwithstanding anything to the contrary set forth herein,
Landlord shall be required to provide the Building with access to all utilities
services as an integral part of the Building Shell Construction.

      17. REPAIR AND MAINTENANCE

      17.1 BUILDING. Tenant shall at all times and at its own expense clean,
keep and maintain in good, safe and sanitary order, condition and repair the
Premises and every part thereof, except as expressly provided hereafter.
Tenant's repair and maintenance obligation shall include, without limitation,
the subflooring, interior walls, roof repairs and replacement (excepting the
structural elements), all Tenant Improvements, all plumbing and sewage
facilities within the Building, fixtures, floors, ceilings, doors, entrances,
skylights, all electrical facilities and equipment, lighting fixtures, fans and
any exhaust equipment and systems, any automatic fire extinguisher equipment
within the Building, electrical motors and all other appliances and equipment of
every kind and nature located in, upon or about the Building. Tenant shall at
its sole cost and expense obtain HVAC systems preventive maintenance contracts
for bimonthly or monthly service in accordance with manufacturer
recommendations, which maintenance contracts shall be subject to the reasonable
approval of Landlord. Landlord shall be responsible for the foundation,
structural and weather-resistance features of the exterior walls and structural
elements of the roof. Washing and repairs of exterior windows and painting of
the building's exterior walls shall be performed by Landlord and included in
Common Area Expenses.

      17.2 COMMON AREAS. Landlord shall maintain and repair the Common Area in
good, safe and sanitary manner and in compliance with all applicable laws,
codes, statutes, rules, and regulations. Landlord shall at all times have
exclusive control of the Common Area and may at any reasonable time temporarily
close any part thereof, exclude and restrain anyone from any part thereof,
except the bona fide customers, employees and invitees of tenant who use such
areas in accordance with the reasonable rules and regulations as Landlord may
from time to time promulgate, and may reasonably change the configuration or
location of the Common Area provided Tenant shall always have access to the
Building and parking areas adjacent thereto. In exercising any such rights,
Landlord shall use diligent efforts to minimize any disruption of Tenant's
business. Landlord shall have the right to reconfigure the parking area and
ingress to and egress from the parking area, and to modify the directional flow
of traffic of the parking areas provided Tenant shall always have access to
Building and parking areas adjacent thereto.

      18. LIENS. Tenant shall keep the Premises free from any liens arising out
of any work performed, materials furnished or obligations incurred by or on
behalf of Tenant (with the exception of work performed by Landlord) and Tenant
hereby indemnifies and holds Landlord and Landlord's Agents harmless from all
costs, claims, expenses, fees or other liability, including attorneys' fees and
costs, in connection with or arising out of any such lien or claim of lien.
Tenant shall cause any such lien imposed to be released of record by payment or
posting of a proper bond acceptable to Landlord within ten (10) days after
imposition of the lien. If Tenant fails to so remove or bond over said lien
within the prescribed ten (10) day period, then Landlord may do so at Tenant's
expense and Tenant's reimbursement to Landlord for such amounts shall be deemed
additional Rent. Such reimbursement shall include all sums disbursed, incurred
or deposited by Landlord including Landlord's costs, expenses and reasonable
attorneys' fees with interest thereon at the Interest Rate.

                                       15
<PAGE>   19
      19. LANDLORD'S RIGHT TO ENTER THE PREMISES. Landlord and Landlord's Agents
shall have the right to enter the Premises at all reasonable times upon
reasonable notice to Tenant, except that no prior notice shall be required in
the event of an emergency, to inspect the Premises; post Notices of
Nonresponsibility, "For Lease" signs and similar such signs and notices; show
the Premises to interested parties such as prospective lenders, purchasers, and
tenants (with respect to prospective tenants, only in the last year of the Term
if Tenant's options to extend has not been exercised); make necessary
Alterations or repairs; and cure a default (as defined in Section 26) by Tenant
under this Lease. The exercise by Landlord of its rights hereunder shall not
result in an abatement of Rent and shall have no effect on any of Tenant's
obligations under this Lease.

      20. SIGNAGE. Landlord shall design, construct and install exterior signage
for Tenant in accordance with the terms and conditions of the Work Agreement,
which signage shall include a shared monument sign and one parapet building sign
in locations reasonably acceptable to Tenant. The costs to design, construct and
install the foregoing exterior signage shall be paid from the TI Allowance.
Tenant shall not have the right to install or maintain Tenant identification
signage in any location in, on or about the Premises and shall not display or
erect any Tenant identification signage or other advertising material that is
visible from the exterior of the Building except as expressly provided in the
Work Agreement.

      21. INSURANCE AND INDEMNITY

      21.1 TENANT'S INDEMNIFICATION AND WAIVER. To the fullest extent permitted
by Law, Tenant releases Landlord and Landlord's Agents from, and waives all
claims for, damage to person or property sustained by Tenant or any occupant of
the Premises or the Project resulting directly or indirectly from any existing
or future condition, defect, matter or thing in and about the Premises or the
Project, or resulting from any accident in or about the Premises or the Project,
or resulting directly or indirectly from any act or neglect of any tenant or
occupant of the Project or of any other person, including Landlord or Landlord's
Agents, except to the extent caused solely by Landlord's gross negligence,
reckless disregard or willful misconduct. Without limiting the generality of the
foregoing, Landlord and Landlord's Agents shall not be liable for any loss or
damage to persons or property resulting from fire, explosion, falling plaster,
glass, tile or sheetrock, 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 solely
caused by the gross negligence or willful acts of Landlord or its Agents and not
part of Tenant's insurance obligations hereunder. Notwithstanding anything to
the contrary set forth herein, Landlord shall enforce all warranties related to
Landlord's Work (or assign such rights to Tenant). Tenant hereby agrees to
defend (with attorneys reasonably acceptable to Landlord), indemnify, protect,
and hold harmless Landlord and Landlord's Agents from and against any and all
damage, loss, liability or expense including, without limitation, attorneys'
fees and legal costs suffered directly or by reason of any claim, suit or
judgment directly or indirectly arising from or relating to the use or occupancy
of the Premises by Tenant or the acts or omissions of the Tenant, its agents,
employees or any contractors. The foregoing release and indemnity shall survive
this Lease to the extent the event that is the object of such waiver or
indemnification occurred prior to the expiration or termination of this Lease.

      21.2 TENANT'S INSURANCE. Tenant agrees to maintain in full force and
effect at all times during the Term, or any renewal thereof, at its own expense,
for the protection of Tenant and Landlord, as their interests may appear,
policies of insurance which afford the following coverages:

            (a) Worker's compensation -- Statutory limits.

            (b) Employer's liability -- Not less than Five Hundred Thousand
      Dollars ($500,000.00).

            (c) Comprehensive general liability insurance in an amount not less
      than Five Million Dollars ($5,000,000.00) combined single limit for both
      bodily injury and property damage, which includes blanket contractual
      liability, broad form property damage, personal injury, completed
      operations, products liability, fire damage, and legal liability, naming
      Landlord and Landlord's Agents as additional insureds.

            (d) "All Risk" property insurance (including, without limitation,
      earthquake (if required by any construction or permanent lender, and only
      if such coverage is generally and customarily required in

                                       16
<PAGE>   20
      the County by landlords and is available to Tenant at commercially
      practicable rates), vandalism, malicious mischief, inflation endorsement
      for the replacement cost, and sprinkler leakage endorsement) on the
      Premises, including, without limitation, the Building Shell, the Tenant
      Improvements, and Tenant's Improvements located on or in the Premises, and
      any Alterations constructed or installed on the Premises. Such insurance
      shall be in the full amount of the replacement cost, as the same may from
      time to time increase as a result of inflation or otherwise, and shall be
      in a form providing coverage comparable to the coverage provided in the
      standard ISO All-Risk form. The insurance shall name Landlord and
      Landlord's Agents as named insureds and include a lender's loss payable
      endorsement in favor of Landlord's lender (Form 438 BFU Endorsement). As
      long as this Lease is in effect, the insurance on Tenant's Improvements
      shall be used for the repair and replacement of such items so insured.

            (e) Rental interruption insurance covering those risks referred to
      in (d), above, in an amount equal to the Monthly Rent (and any other sums
      payable under the Lease) for a period of at least twelve (12) months
      commencing with the date of loss.

            (f) Boiler and machinery insurance including but not limited to
      steam pipes, pressure pipes, condensation return pipes and other pressure
      vessels and HVAC equipment, including miscellaneous electrical apparatus,
      in an amount satisfactory to Landlord.

      21.3 TENANT'S CERTIFICATES. Tenant shall deliver to Landlord at least
thirty (30) days prior to the time such insurance is first required to be
carried by Tenant, and thereafter at least thirty (30) days prior to expiration
of each such policy, certificates of insurance evidencing the above coverage
with limits not less than those specified above. The certificates shall name
Landlord as an additional insured, and shall expressly provide that the interest
of Landlord therein shall not be affected by any breach of Tenant of any policy
provision for which such certificates evidence coverage. Further, all
certificates shall expressly provide that no less than thirty (30) days' prior
written notice shall be given to Landlord in the event of cancellation of the
coverages evidenced by such certificates.

      21.4 INCREASED COVERAGE. Upon demand, Tenant shall provide Landlord, at
Tenant's expense, with such increased amount of existing insurance, and such
other insurance as Landlord or Landlord's lender may reasonably require to
afford Landlord and Landlord's lender adequate protection, provided that such
increased coverage is generally required by landlords in the County for similar
buildings, and further provided that such increased coverage is available at
commercially practicable rates.

      21.5 CO-INSURER. If, on account of the failure of Tenant to comply with
the foregoing provisions, Landlord is adjudged a co-insurer by its insurance
carrier, then, any loss or damage Landlord shall sustain by reason thereof,
including attorneys' fees and costs, shall be borne by Tenant and shall be
immediately paid by Tenant upon receipt of a statement therefore and evidence of
such loss.

      21.6 NO LIMITATION OF LIABILITY. Landlord and its agents make no
representation that the limits of liability specified to be carried by Tenant
under this Lease are adequate to protect Tenant and shall not operate to limit
or modify Tenant's liability and obligations under this Lease. If Tenant
believes that any such insurance coverage is insufficient, Tenant shall provide,
at its own expense, such additional insurance as Tenant deems adequate.

      21.7 TENANT'S INSURANCE REQUIREMENTS. All such insurance obtained
hereunder shall a) be in a form reasonably satisfactory to Landlord and shall be
carried with companies that have a general policyholder's rating of not less
than "A" and a financial rating of not less than Class "X" in the most current
edition of Best's Insurance Reports; b) 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 c) be primary as to Landlord. The
policy or policies, or duly executed certificates for them, together with
satisfactory evidence of payment of the premium thereon shall be deposited with
Landlord prior to the Commencement Date, and upon renewal of such policies, not
less than thirty (30) days prior to the expiration of the term of such coverage.
If Tenant fails to procure and maintain the insurance required hereunder,
Landlord may, but shall not be required to, order such insurance at Tenant's
expense and Tenant's reimbursement to Landlord for such amounts shall be deemed
Additional Rent. Such reimbursement shall include all sums disbursed, incurred
or deposited by Landlord including Landlord's costs, expenses and reasonable
attorneys' fees with interest thereon at the Interest Rate.

                                       17
<PAGE>   21
      21.8 LANDLORD'S INDEMNIFICATION. Landlord hereby agrees to defend (with
attorneys reasonably acceptable to Tenant), indemnify, protect, and hold
harmless Tenant and its agents, employees, contractors, licensees and invitees
from and against any and all damage, loss, liability or expense including,
without limitation, attorneys' fees and legal costs sustained by any person on
the Common Areas of the Project unless such damage, loss, liability or expense
is caused by Tenant, it agents, employees or contractors. The foregoing
indemnity shall survive this Lease to the extent the event that is the object of
such indemnification occurred prior to the expiration or termination of this
Lease.

      21.9 LANDLORD'S INSURANCE; LANDLORD'S CERTIFICATES. Landlord shall secure
and maintain commercial general liability insurance with respect to the Common
Areas of the Project in such amount as Landlord shall determine, such insurance
to be in addition to, and not in lieu of, the liability insurance required to be
maintained by Tenant. In addition, Landlord may secure and maintain rental
income insurance. Landlord shall deliver to Tenant at least thirty (30) days
prior to the time such insurance is first required to be carried by Landlord,
and thereafter at least thirty (30) days prior to expiration of each such
policy, certificates of insurance evidencing the coverage described in this
Section 21.9. The certificates shall name Tenant as an additional insured, and
shall expressly provide that the interest of Tenant therein shall not be
affected by any breach of Landlord of any policy provision for which such
certificates evidence coverage. Further, all certificates shall expressly
provide that no less than thirty (30) days' prior written notice shall be given
to Tenant in the event of cancellation of the coverages evidenced by such
certificates.

      22. WAIVER OF SUBROGATION. Landlord and Tenant each hereby waive all
rights of recovery against the other on account of loss and damage occasioned to
such waiving party for its property or the property of others under its control
to the extent that such loss or damage is required to be insured against
hereunder. Tenant and Landlord shall, upon obtaining policies of insurance
required hereunder, give notice to the insurance carrier that the foregoing
mutual waiver of subrogation is contained in this Lease and Tenant and Landlord
shall cause each insurance policy obtained by such party to provide that the
insurance company waives all right of recovery by way of subrogation against
either Landlord or Tenant in connection with any damage covered by such policy.

      23. DAMAGE OR DESTRUCTION

      23.1 LANDLORD'S OBLIGATION TO REBUILD. If the Premises are damaged or
destroyed, Landlord shall promptly and diligently repair the Premises unless it
has the right to terminate this Lease as provided herein and it elects in
writing to so terminate.

      23.2 LANDLORD'S RIGHT TO TERMINATE. Landlord and Tenant, each shall have
the right to terminate this Lease in the event any of the following events
occurs:

            (a) Insurance proceeds are not available to pay one hundred percent
      (100%) of the cost of such repair, excluding the deductible for which
      Tenant shall be responsible and neither Landlord nor Tenant agrees to pay
      any resulting shortfall in cash;

            (b) The Premises cannot, with reasonable diligence, be fully
      repaired by Landlord within one hundred twenty (120) days after the date
      of the damage or destruction; or

            (c) The Premises cannot be safely repaired because of the presence
      of hazardous factors, including, but not limited to, earthquake faults,
      radiation, chemical waste and other similar dangers.

      If either party elects to terminate this Lease, it shall give the other
party written notice of its election to terminate within thirty (30) days after
such damage or destruction, and this Lease shall be deemed to have terminated on
the date of the damage. If neither party elects to terminate the Lease, Landlord
shall promptly, following the date of such damage or destruction, commence the
process of obtaining necessary permits and approvals, and shall commence repair
of the Premises or the Building as soon as practicable and thereafter prosecute
the same diligently to completion, in which event this Lease will continue in
full force and effect. All insurance proceeds payable from insurance supplied
pursuant to Section 21, excluding proceeds for Tenant's

                                       18
<PAGE>   22
Property, shall be disbursed and paid to Landlord. Tenant shall be required to
pay to Landlord the amount of any deductibles payable in connection with any
insured casualties, unless the casualty was caused by the sole negligence or
willful misconduct of Landlord or Landlord's Agents, or breach of any of its
obligations herein.

      23.3 LIMITED OBLIGATION TO REPAIR. Landlord's obligation, should the Lease
not be terminated as permitted in Section 23.2 above, shall be limited to the
basic Building Shell and the Tenant Improvements, and Tenant shall, at its sole
cost and expense, replace or fully repair Tenant's Property and any Alterations
installed by Tenant and existing at the time of such damage or destruction.

      23.4 ABATEMENT OF RENT. Rent shall be temporarily abated equitably and
proportionately to Tenant's loss of use of the Premises, for as long as Tenant
is precluded from using any portion of the Premises for its intended use, but
only to the extent of any proceeds entitled to be received by Landlord from
rental interruption insurance described in 21.2(e). Such abatement shall
commence upon such damage or destruction and end upon substantial completion by
Landlord of the repair or reconstruction which Landlord is obligated or
undertakes to do. Tenant shall not be entitled to any compensation or damages
from Landlord for loss of the use of the Premises, damage to Tenant Improvements
or any inconvenience occasioned by such damage, repair or restoration. Tenant
hereby waives the provisions of Section 1932, Subdivision 2, and Section 1933,
Subdivision 4, of the California Civil Code, and the provisions of any similar
law hereinafter enacted.

      23.5 DAMAGE NEAR END OF TERM. Anything herein to the contrary
notwithstanding, if the Premises are materially destroyed or materially damaged
during the last twelve (12) months of the then current Term, then Landlord may,
at its option, cancel and terminate this Lease as of the date of the occurrence
of such damage, provided, however that minimal or insubstantial damage or
destruction to the Premises or damage which can be repaired within ninety (90)
days shall not be an occurrence giving rise to Landlord's right to terminate
this Lease pursuant to this Section 23.5. If Landlord does not elect to so
terminate this Lease, the repair of such damage shall be governed by Sections
23.1 or 23.2, as the case may be. If this Lease is terminated, Landlord may keep
all the insurance proceeds resulting from such damage. Notwithstanding the
foregoing, if Tenant commits in writing to exercise its extension option, then
the terms of Section 23.2 and not this Section 23.5 shall govern repair and
rebuilding of the Premises.

      23.6 REPAIR COST. The determination, so long as reasonable and in good
faith by Landlord's licensed architect of the estimated cost of repair or
replacement of any damage or of the estimated time period required for repair
shall be conclusive for the purposes of this Section 23.

      24. CONDEMNATION. If title to (i) all of the Premises or so much thereof
is taken or appropriated for any public or quasi-public use under any statute or
by right of eminent domain so that reconstruction of the Premises will not, in
Landlord's and Tenant's mutual reasonable judgment, result in the Premises being
suitable for Tenant's continued occupancy for the uses and purposes permitted by
this Lease or (ii) so much of the Common Areas (including parking) as to
materially interfere with Tenant's rights to vehicular and pedestrian access to
the Premises, this Lease shall terminate as of the date that possession of the
Premises or part thereof be taken. If any part of the Premises is taken and the
remaining part is commercially suitable for Tenant's continued occupancy for the
purposes and uses permitted by this Lease shall, as to the part so taken,
terminate as of the date that possession of such part of the Premises is taken.
If the Premises is so partially taken the Rent and other sums payable hereunder
shall be reduced in the same proportion that Tenant's use and occupancy of,
and/or access to, the Premises is reduced. No award for any partial or entire
taking shall be apportioned. 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.
Notwithstanding the generality of the foregoing, Tenant shall not have the right
to any bonus value of Tenant's leasehold interest in the Premises. Nothing
contained herein shall be deemed to give Landlord any interest in or require
Tenant to assign to Landlord any award made or allocated to Tenant for the
taking of Tenant's Property, for the interruption of Tenant's business, or its
moving costs. Each party agrees to execute and deliver to the other all
instruments that may be required to effectuate the provisions of this Section
24.

      25. ASSIGNMENT AND SUBLETTING

                                       19
<PAGE>   23
      25.1 TRANSFERS. Except for "Permitted Transfers" (as defined BELOW),
Tenant shall not sell, assign, encumber or otherwise transfer by operation of
law or otherwise this Lease or any interest herein, sublet the Premises or any
part thereof, or permit any other person to occupy or use the Premises or any
portion thereof (all of the foregoing are hereinafter sometimes referred to
collectively as "Transfers," and any person to whom any Transfer is made or
sought to be made is hereafter sometimes referred to as "Transferee"), without
the prior written consent of Landlord, which consent shall not be unreasonably
withheld. In the event Tenant seeks Landlord's consent to a Transfer, Tenant
shall give Landlord written notice ("Transfer Notice") of such request at least
thirty (30) days in advance of the proposed Transfer date. The Transfer Notice
shall include: (i) a description of the portion of the Premises to be
transferred (the "Subject Space"), (ii) all of the material information of the
proposed Transfer and the consideration therefor, (iii) current financial
statements of the proposed Transferee, and (iv) any other information reasonably
required by Landlord. Any Transfer made without Landlord's prior written consent
shall, at Landlord's option, be null, void and of no effect, and shall, at
Landlord's option, constitute a default by Tenant under this Lease. Whether or
not Landlord shall grant consent, Tenant shall pay Landlord's review and
processing fees, as well as any reasonable legal fees incurred by Landlord,
within thirty (30) days after written request by Landlord. Notwithstanding the
foregoing, Landlord shall not have the right to withhold consent to, and the
following shall be deemed permitted transfers ("Permitted Transfers") hereunder:
Tenant's assignment of its interest under this Lease to (i) a corporation or
other entity which is the parent of, subsidiary to, or affiliated with Tenant,
or (ii) a corporation or other entity resulting from any consolidation,
reorganization or merger with Tenant. Additionally, if Tenant is purchased by an
entity, or some or all of its employees, or "spun off" by its parent corporation
and after such transaction Tenant is publicly traded and has a net worth not
less than Guarantor's net worth as of the date of the Lease, then such
transaction shall be deemed a Permitted Transfer under this Section 25.

      25.2 LANDLORD'S CONSENT. Landlord shall notify Tenant in writing as to
whether it consents to a proposed Transfer within fifteen (15) business days
following receipt of a complete Transfer Notice. Without limitation as to other
reasonable grounds for Landlord to withhold its consent, except with regard to
Permitted Transfers, Tenant acknowledges and agrees that it would be reasonable
for Landlord to withhold its consent if in Landlord's reasonable opinion the
proposed Transferee: (i) would adversely affect the use and operation of the
Premises by Landlord or other tenants in the Premises; (ii) would put the
Premises to a use (other than the use permitted hereunder) that would violate
any exclusive use rights granted by Landlord to any other tenant in the Project;
or (iii) does not have, in Landlord's reasonable business judgment, sufficient
net worth, operating income or creditworthiness to fulfill the obligations of
Tenant under this Lease. If Landlord consents to any Transfer pursuant to this
Section 25.2 (and does not exercise any recapture rights Landlord may have under
Section 25.4), Tenant may within six (6) months after Landlord's consent, but
not later than the expiration of said six-month period, enter into such Transfer
of the Premises but only upon substantially the same terms and conditions as
were set forth in the Transfer Notice.

      25.3 TRANSFER PREMIUM. If Landlord consents to a Transfer, as a condition
thereto which the parties hereby agree is reasonable, Tenant shall pay to
Landlord one-half (1/2) of the "Transfer Premium," if any, received by Tenant
by reason of such Transfer. "Transfer Premium" shall mean all rent or other
consideration payable by such Transferee in excess of the Tenant's Base Rent
determined on a per rentable square foot basis if less than all of the Premises
is transferred, after deducting the reasonable expenses incurred and paid by
Tenant for (i) any changes, alterations and improvements to the Premises in
connection with the Transfer, including without limitation, any design costs and
tenant improvement allowances, (ii) any brokerage commissions paid in connection
with the Transfer, (iii) the amount of any Base Rent and Additional Rent paid by
Tenant to Landlord with respect to the Subject Space during the term of the
Transfer (collectively, the "Subleasing Costs"). "Transfer Premium" shall also
include, but not be limited to, key money and bonus money paid by Transferee to
Tenant in connection with such Transfer, and any payment in excess of fair
market value for services rendered by Tenant to Transferee or in excess of fair
market value for assets, fixtures, inventory, equipment, or furniture
transferred by Tenant to Transferee in connection with such Transfer. The
determination of the amount of the Transfer Premium shall be made on a monthly
basis as rent or other consideration is received by Tenant under the Transfer.
For purposes of calculating the Transfer Premium on a monthly basis, (i)
Tenant's Subleasing Costs shall be deemed to be expended by Tenant in equal
monthly amounts over the entire term of the Transfer.

                                       20
<PAGE>   24
      25.4 RECAPTURE RIGHTS. Landlord shall have no recapture rights under this
Section 25.4 if Tenant requests assignment and/or transfer of one-third (") or
less of the total square footage of the Building. Following receipt of any
Transfer Notice pursuant to which Tenant requests transfer of more than
one-third (") of the total square footage of the Building, Landlord may, upon
written notice to Tenant, advise Tenant of its intention to terminate this
Lease. If Landlord notifies Tenant, Tenant may withdraw its request to transfer
the Premises by written notice to Landlord, in which case this Lease shall
continue as if no Transfer Notice was delivered to Landlord. If Tenant does not
withdraw its transfer request by written notice to Landlord with seven (7) days
after receipt of Landlord's election to terminate this Lease, Landlord may, if
it elects, enter into a new lease with the intended Transferee or any other
person on such Information as Landlord and such person may agree. Tenant shall
not be entitled to any portion of the profit, if any, which Landlord may realize
on account of such termination and reletting. Landlord's exercise of its
aforesaid rights shall not be construed to impose any liability upon Landlord
with respect to any real estate brokerage commission(s) or any other costs or
expenses incurred by Tenant in connection with its proposed Transfer.

      25.5 NO RELEASE OF TENANT; LANDLORD'S REMEDIES. No Transfer by Tenant
shall result in Tenant being released or discharged from any liability under
this Lease. The acceptance of rent by Landlord from any other person shall not
be deemed to be a waiver by Landlord of any provision of this Lease. In the
event of default by any transferee under this Lease, Landlord may proceed
directly against Tenant without the necessity of exhausting remedies against the
Transferee. Landlord may consent to subsequent Transfers or to amendments of or
modifications to this Lease with the Transferees without notifying Tenant and
without obtaining its consent to such amendments or modifications, and such
action shall not relieve Tenant of liability under this Lease. Landlord's
consent to one Transfer shall not be deemed to be a consent to any subsequent
Transfer and any such transaction which does not comply with the provisions of
this Section 25 shall be void and shall constitute a material event of default
under this Lease.

      25.6 SALE OF STOCK OR OTHER INTERESTS. With the exception of Permitted
Transfers, the following transactions shall constitute a Transfer for purposes
of this Section 25. If Tenant is a corporation, partnership or limited liability
company, any sale or other transfer, including by consolidation, merger or
reorganization, of more than 50% of the voting stock, partnership interests or
membership interests of Tenant in the aggregate during the Term shall constitute
a "Transfer" for purposes of this Section 25.

      26. DEFAULT

      26.1 TENANT'S DEFAULT. A default under this Lease by Tenant shall exist if
any of the following events shall occur:

            (a) Tenant fails to pay any installment of Monthly Rent or any other
      sum due and payable hereunder within five (5) days after the date when
      payment is due; provided that one time during each calendar year of the
      Term, Tenant shall be permitted a grace period, pursuant to which Tenant
      shall not be in default hereunder if Tenant pays the installment of
      monthly rent within five (5) days after written notice from Landlord;

            (b) Tenant shall have failed to perform any other term, covenant or
      condition of this Lease not requiring the payment of money, and Tenant
      shall have failed to cure such breach within thirty (30) days after
      written notice from Landlord; provided that Tenant shall not be deemed in
      default hereunder, if such failure is not curable within thirty (30) days
      and Tenant commences such cure within thirty (30) days after receipt of
      Landlord's notice and diligently prosecutes such cure to completion;

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

            (d) If Tenant files any voluntary petition in bankruptcy, or an
      involuntary petition against Tenant is filed and is not dismissed within
      thirty (30) business days of such filing;

            (e) The sequestration or attachment of or execution on any material
      part of Tenant's Property essential to the conduct of Tenant's business
      occurs, and Tenant fails to obtain a return or release

                                       21
<PAGE>   25
      of Tenant's Property within ten (10) business days thereafter, or prior to
      sale pursuant to such sequestration, attachment or levy, whichever is
      earlier;

            (f) Appointment of a trustee or receiver to take possession of all
      or substantially all of Tenant's assets or the Premises, where possession
      is not restored to Tenant within ten (10) business days; or

            (g) Tenant abandons the Premises.

      26.2 REMEDIES. Upon any default by Tenant, Landlord shall have the
following remedies, in addition to all other rights and remedies provided by law
or otherwise provided in this Lease, to which Landlord may resort cumulatively
or in the alternative:

            (a) If an event of default exists even though Tenant has breached
      this Lease and/or abandoned the Premises, this Lease shall continue in
      effect for so long as Landlord does not terminate in writing Tenant's
      right to possession under the Lease, and Landlord may enforce all of its
      rights and remedies under this Lease, including (but without limitation)
      the right to recover Rent as it becomes due, and Landlord, without
      terminating this Lease, may exercise all of the rights and remedies of a
      landlord under Section 1951.4 of the Civil Code of the State of California
      or any amended or successor code section. Acts of maintenance or
      preservation, efforts to relet the Premises or the appointment of a
      receiver upon application of Landlord to protect Landlord's interest under
      this Lease shall not constitute an election to terminate Tenant's right to
      possession

            (b) Landlord may terminate Tenant's right to possession of the
      Premises at any time by giving written notice to that effect, and relet
      the Premises or any part thereof. Tenant shall be liable immediately to
      Landlord for all reasonable costs Landlord incurs in reletting the
      Premises or any part thereof, including, without limitation, broker's
      commissions, expenses of cleaning and redecorating the Premises required
      by the reletting and like costs. Reletting may be for a period shorter or
      longer than the remaining Term of this Lease. No act by Landlord other
      than giving written notice to Tenant shall terminate this Lease. Acts of
      maintenance, efforts to relet 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. On termination, Landlord has the right to remove all Tenant's
      Property and store the same at Tenant's cost and to recover from Tenant as
      damages:

                  (1)   The worth at the time of award of unpaid Base Rent and
                        other sums due and payable which had been earned at the
                        time of termination;

                  (2)   The worth at the time of award of the amount by which
                        the unpaid Base Rent and other sums due and payable
                        which would have been payable after termination until
                        the time of award exceeds the amount of such Base Rent
                        and other payment loss that Tenant proves could have
                        been reasonably avoided;

                  (3)   The worth at the time of award of the amount by which
                        the unpaid Base Rent and other sums due and payable for
                        the balance of the Term after the time of award exceeds
                        the amount of such Base Rent and other payment loss that
                        Tenant proves could be reasonably avoided;

                  (4)   Any other amount necessary which is to compensate
                        Landlord for all the detriment directly caused by
                        Tenant's failure to perform Tenant's obligations under
                        this Lease, or which, in the ordinary course of things,
                        would be likely to result therefrom, including, without
                        limitation, any costs or expenses incurred by Landlord:
                        (i) in retaking possession of the Premises; (ii) in
                        maintaining, repairing, preserving, restoring,
                        replacing, cleaning, altering or rehabilitating the
                        Premises or any portion thereof, including such acts for
                        reletting to a new tenant or tenants; (iii) for leasing
                        commissions; or (iv) for any other costs necessary or
                        appropriate to relet the Premises; plus

                                       22
<PAGE>   26
                  (5)   At Landlord's election, such other amounts in addition
                        to or in lieu of the foregoing as may be permitted from
                        time to time by the laws of the State of California.

            The "worth at the time of award" of the amounts referred to in
      Sections 26.2(b)(1) and 26.2(b)(2) is computed by allowing interest at the
      Interest Rate on the unpaid Base Rent and other sums due and payable from
      the termination date through the date of award. The "worth at the time of
      award" of the amount referred to in Section 26.2(b)(3) is computed by
      discounting such amount at the discount rate of the Federal Reserve Bank
      of San Francisco at the time of award plus one percent (1%).

            (c) Landlord may, with or without terminating this Lease, re-enter
      the Premises and remove all persons and property from the Premises; such
      property may be removed and stored in a public warehouse or elsewhere at
      the cost of and for the account of Tenant. No re-entry or taking
      possession of the Premises by Landlord pursuant to this Section shall be
      construed as an election to terminate this Lease unless a written notice
      of such intention is given to Tenant.

      26.3 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 thirty (30)
days after receipt of written notice by Tenant to Landlord specifying the nature
of such default; provided, however, that if the nature of Landlord's obligation
is such that more than thirty (30) days are required for its performance, then
Landlord shall not be deemed to be in default if it shall have commenced such
performance within such thirty (30) day period and thereafter diligently
prosecutes the same to completion.

      27. SUBORDINATION AND MORTGAGEE PROTECTION

      27.1 SUBORDINATION, NONDISTURBANCE AND ATTORNMENT. This Lease is and shall
be expressly subject and subordinate at all times to the lien of any mortgage or
trust deed now or hereafter encumbering fee title to the real property on which
the Premises are located and/or the leasehold estate under any ground lease, and
all amendments, extensions, renewals, replacements and modifications, unless
such ground lease, mortgage, trust deed or the holder thereof, expressly
provides or elects that the Lease shall be superior to such ground lease or
mortgage or trust deed. If any such mortgage or trust deed is foreclosed
(including any sale pursuant to a power of sale), or if any such ground lease is
terminated, upon request of the holder of such mortgage or deed of trust
("Mortgagee") or the ground lessor, as the case may be, Tenant shall attorn to
the purchaser at the foreclosure sale or to the ground lessor under such ground
lease, as the case may be, provided, however, that such purchaser or ground
lessor shall not be (i) bound by any payment of Base Rent for more than one
month in advance except payments in the nature of security for the performance
by Tenant of its obligations under this Lease; (ii) subject to any offset,
defense or damages arising out of a default of any obligations of any preceding
Landlord; (iii) bound by any amendment or modification of this Lease made
without the written consent of the Mortgagee or ground lessor (if Tenant is
provided written notice of Mortgagee's address); or (iv) liable for any security
deposits not actually received in cash by or credited to such purchaser or
ground lessor. This subordination shall be self-operative; provided that, so
long as Tenant is not in default hereunder (for which the cure period has
lapsed), Tenant's rights under this Lease shall not be disturbed and no further
certificate or instrument of subordination need be required by any such
Mortgagee or ground lessor. Tenant shall execute promptly any reasonable
certificate or instrument that Landlord, Mortgagee or ground lessor may request
provided that such document provides that so long as a default under this Lease
has not occurred with respect to Tenant (for which the cure period has lapsed),
such Mortgagee or ground lessor shall grant Tenant nondisturbance and recognize
Tenant's rights under this Lease. Tenant hereby constitutes Landlord as Tenant's
attorney-in-fact to execute such certificate or instrument for and on behalf of
Tenant upon Tenant's failure to do so within fifteen (15) days of a request to
do so.

      27.2 MORTGAGEE PROTECTION. Tenant agrees to give any Mortgagee, by
registered or certified mail, a copy of any notice of default served upon the
Landlord by Tenant, provided that prior to such notice Tenant has received
written notice (by way of service on Tenant of a copy of an assignment of rents
and leases, or otherwise) of the address of the Mortgagee. Tenant further agrees
that if Landlord shall have failed to cure such default within the time provided
for in this Lease, then the Mortgagee shall have an additional thirty (30) days
after receipt of notice thereof within which to cure such default or if such
default cannot be cured within that time, then such

                                       23
<PAGE>   27
additional notice time as may be necessary, if, within such thirty (30) days,
the Mortgagee has commenced and is diligently pursuing the remedies necessary to
cure such default (including commencement of foreclosure proceedings or other
proceedings to acquire possession of the real property, if necessary to effect
such cure). Such period of time shall be extended by any period within which
such Mortgagee is prevented from commencing or pursuing such foreclosure
proceedings or other proceedings to acquire possession of the real property by
reason of Landlord's bankruptcy. Until the time allowed as aforesaid for
Mortgagee to cure such defaults has expired without cure, Tenant shall have no
right to, and shall not, terminate this Lease on account of default. This Lease
may not be modified or amended so as to reduce the Rent or shorten the Term, or
so as to adversely affect in any other respect to any material extent the rights
of the Landlord, nor shall this Lease be canceled or surrendered, without the
prior written consent, in each instance, of the Mortgagee.

      28. NOTICES. Any notice or demand required or desired to be given under
this Lease shall be in writing and shall be deemed given when personally served
or upon delivery by confirmed facsimile transmission or one business day after
being deposited with Federal Express or other nationally recognized overnight
courier service or on the third business day after such notice was deposited in
the United States mail, registered or certified, and postage prepaid, addressed
to the party to be served. At the date of execution of this Lease, the addresses
of Landlord and Tenant are as set forth in the Basic Lease Provisions of this
Lease. After the Commencement Date, the address of Tenant shall be the address
of the Premises. Either party may change its address by giving notice of same in
accordance with this Section 28.

      29. 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.

      30. TENANT'S STATEMENTS. Tenant shall, within ten (10) business days
following any written request by Landlord, do the following:

      30.1 ESTOPPEL CERTIFICATES. Execute and deliver to Landlord and/or
Landlord's construction, permanent or interim lender, any ground Lessor under a
ground lease and any third-party purchaser of Landlord's interest in the
Premises, any documents, including estoppel certificates, in the form prepared
by Landlord (a) certifying that this Lease is unmodified and in full force and
effect or, if modified, stating the nature of such modification and certifying
that this Lease, as so modified, is in full force and effect and the date to
which the Rent and other charges are paid in advance, if any; (b) acknowledging
that there are not, to Tenant's knowledge, any uncured defaults on the part of
Landlord, or, if there are uncured defaults on the part of the Landlord, stating
the nature of such defaults; (c) confirming the term of the Lease; d) confirming
the rent and other charges payable under this Lease and the amount of any
security deposit paid by Tenant; (e) describing the nature of any unfulfilled
construction or improvement obligations of Landlord, if any; and (f) confirming
or describing any such other matters as may be required either by (i) any lender
making a loan to Landlord to be secured by deed of trust or mortgage covering
Landlord's interest in the Premises, or (ii) any purchaser of the Premises from
Landlord. Tenant's failure to deliver an estoppel certificate within ten (10)
days after delivery of Landlord's written request therefore shall be conclusive
upon Tenant (a) that this Lease is in full force and effect, without
modification except as may be represented by Landlord, (b) that there are now no
uncured defaults in Landlord's performance, and (c) that no Rent has been paid
in advance, and shall constitute Landlord as Tenant's attorney-in-fact to
execute any such estoppel certificate on behalf of Tenant.

      30.2 FINANCIAL STATEMENTS. Prior to the Commencement Date and at all
reasonable times in connection with giving any estoppel certificate under
Section 30.1 or any time that Tenant shall be in default of this Lease, deliver
to Landlord current financial statements and financial statements of the two (2)
years prior to the current financial statements, for both Tenant and any
guarantor of this Lease. Said financial statements shall provide balance sheet
and profit and loss statements including year-to-date actual versus projected
operating results and shall be presented in accordance with the then prevailing
standards published by the American Institute of Certified Public Accountants
(AICPA). Financial information provided to Landlord that is not publicly
available will be held in a confidential manner and will not be released to
third parties without the consent of Tenant. Tenant acknowledges Landlord's need
to release Tenant's and any guarantor's financial information for financing and
sale purposes and will not unreasonably withhold said consent.

                                       24
<PAGE>   28
      31. TRANSFER OF THE PREMISES BY LANDLORD. In the event of any conveyance
of the Premises and assignment by Landlord of this Lease, Landlord shall be and
is hereby entirely released from all liability under any and all of its
covenants and obligations arising under this Lease after the date of such
conveyance and assignment to the extent that the same are assumed by such
assignee in writing and Tenant can lawfully rely on the same.

      32. LANDLORD'S RIGHT TO PERFORM TENANT'S COVENANTS. 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 and all cure periods have lapsed, Landlord may, but
shall not be obligated to 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. Landlord shall give Tenant reasonable prior notice
of its intention to perform Tenant's covenants hereunder. All sums so paid by
Landlord and all penalties, interest and costs in connection therewith shall be
due and payable by Tenant on the next day after any such payment by Landlord,
together with interest thereon at the Interest Rate from such date to the date
of payment thereof by Tenant to Landlord, plus collection costs and attorneys'
fees. Landlord shall have the same rights and remedies for the nonpayment
thereof as in the case of default in payment of Rent.

      33. LIMITATION OF LIABILITY OF LANDLORD. Tenant acknowledges and agrees
that the liability of Landlord under this Lease shall be limited to its interest
in the Premises, and any judgments rendered against Landlord shall be satisfied
solely out of the proceeds of sale of its interest in the Premises. No member,
manager, officer or partner of Landlord shall be named as a party in any suit or
action (except as may be necessary to secure jurisdiction over Landlord) and no
personal judgment shall lie against Landlord. Tenant agrees that the foregoing
covenants and limitations shall be applicable to any obligation or liability of
Landlord, whether expressly contained in this Lease or imposed by statute or at
common law.

      34. BROKERS. Landlord and Tenant mutually warrant and represent that (a)
each party has had no dealings with any real estate broker or agent in
connection with the negotiation of this Lease except for Cornish & Carey
Commercial and Triton Commercial Real Estate, Inc., whose commissions shall be
paid by Landlord pursuant to a separate written agreement, and (b) each party
knows of no other real estate broker or agent who is or might be entitled to a
commission in connection with this Lease. Landlord and Tenant each agree to
indemnify and hold the other party and such other party's agents harmless from
and against any and all liabilities or expenses, including attorneys' fees and
costs, arising out of or in connection with claims made by any other broker or
individual for commissions or fees resulting from Tenant's execution of this
Lease.

      35. ACCEPTANCE. Presentation of this Lease form by Landlord shall not
constitute an offer to lease the Premises, and under no circumstances shall such
presentation be deemed to create an offer, option or reservation to lease the
Premises for the benefit of Tenant. This Lease shall only become effective and
binding upon full execution hereof by Landlord and Tenant and delivery of a
fully signed counterpart original to Tenant.

      36. MODIFICATION FOR LENDER. If, in connection with Landlord's obtaining
financing for the Premises or any portion thereof, Landlord's lender shall
request reasonable modification 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 materially or adversely affect Tenant's
rights hereunder and do not alter Tenant's monetary obligations or the Term in
any manner.

      37. GENERAL

      37.1 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.

      37.2 COUNTERPARTS. This Lease may be executed in one or more counterparts
all of which shall constitute a single agreement, any fully executed counterpart
of this Lease shall be deemed an original for all purposes.

                                       25
<PAGE>   29
      37.3  TIME.  Time is of the essence for the performance of each
term, condition and covenant of this Lease.

      37.4 SEVERABILITY. In case any one or more of the provisions contained
herein, except for the payment of Rent, shall for any reason be held to be
invalid, illegal or unenforceable in any respect, such invalidity, illegality,
or unenforceability 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.

      37.5  GOVERNING LAW.  This Lease shall be construed and enforced in
accordance with the laws of the State of California.

      37.6 CONSTRUCTION. Each party to this Lease has had full opportunity to
review and negotiate its provisions and any ambiguities shall not be construed
for or against any party. 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.

      37.7. NO RECORDING.  Tenant shall have no right to record this Lease
or a memorandum thereof without Landlord's written consent first obtained.

      37.8. QUITCLAIM.  Upon any termination of this Lease, Tenant shall,
at Landlord's request, execute, have acknowledged and deliver to Landlord
a quitclaim deed of the Premises.

      37.9  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, and the singular includes the
plural.

      37.10 BINDING EFFECT. Subject to the provisions of Section 25, the
covenants and agreements contained in this Lease shall be binding upon and inure
to the benefit of the parties hereto and their respective successors and
assigns.

      37.11 WAIVER. The waiver by either party hereto of any breach of any term,
condition or covenant of this Lease shall not deemed to be a waiver of such
provision or any subsequent breach of the same or any other term, condition or
covenant of this Lease. Landlord's subsequent acceptance of Rent hereunder shall
not be deemed to be a waiver of any breach preceding the time of acceptance of
such payment. No covenant, term or condition of this Lease shall be deemed to
have been waived unless such waiver is written and signed by the waiving party.

      37.12 ENTIRE AGREEMENT. This Lease together with the Exhibits attached
hereto (which are incorporated herein by this reference) represent the entire
agreement between the parties and supersedes all prior and contemporaneous
agreements, discussions, representations and negotiations, whether oral or
written, and there are no other agreements or representations between the
parties except as expressed herein. No subsequent change or addition to this
Lease shall be binding unless in writing and signed by the parties hereto.

      37.13 ATTORNEYS' FEES. In the event any action at law or equity or any
arbitration proceeding is commenced by any party to interpret or enforce the
terms hereof, the prevailing party in such action or proceeding shall be
entitled to recover its costs and expenses incurred, including reasonable
attorneys' fees, in addition to any other relief to which it may be entitled.
The foregoing reference to arbitration shall not be construed as an agreement to
arbitrate any dispute under this Lease.

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

                                       26
<PAGE>   30
with its terms. If Landlord is a corporation, partnership or limited liability
company, each individual executing this Lease on behalf of said entity, as the
case may be, represents and warrants that he or she is duly authorized to
execute and deliver this Lease on behalf of said entity in accordance with its
corporate bylaws, partnership agreement, operating agreement or other
organizational documents, as the case may be, and that this Lease is binding
upon said entity in accordance with its terms.

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

LANDLORD:              HARBOUR PROPERTIES, LLC
                       a California limited liability company

                       By: /s/ Bill R. Poland
                           ------------------------------------
                       Name: Bill R. Poland
                             ----------------------------------
                       Title:  Manager
                               --------------------------------

TENANT:                WIRELESS FULFILLMENT SERVICES LLC,
                       a California limited liability company
                       By:  Brightpoint, Inc., its Managing Member

                       By: /s/ Steven E. Fivel
                           -------------------------------------
                       Name: Steven E. Fivel
                            ------------------------------------
                       Title:  Executive Vice President, General
                                 Counsel and Secretary
                            ------------------------------------

                                       27
<PAGE>   31
                                ADDENDUM TO LEASE

      THIS ADDENDUM TO LEASE is made a part of and incorporated into that
certain Lease dated April 25, 2000 by and between HARBOUR PROPERTIES, LLC, a
California limited liability company, as Landlord, and WIRELESS FULFILLMENT
SERVICES LLC, a California limited liability company, as Tenant for the purpose
of adding the following Sections 39 and 40 to the Lease:

      39.   OPTION TO EXTEND TERM

      39.1 OPTION PERIODS. Provided that Tenant is not in default hereunder (and
all applicable cure periods have expired), either at the time of exercise or at
the time the extended Term commences, Tenant shall have the option to extend the
Term of this Lease for two (2) additional successive periods of five (5) years
each ("First Option Period," and "Second Option Period," collectively referred
to as the "Option Period" or "Option Periods") on the same terms, covenants and
conditions provided herein, except that upon each such renewal the Base Rent due
hereunder shall be determined pursuant to Section 39.2. Tenant shall exercise
each option by giving Landlord written notice ("Option Notice") at least two
hundred and seventy (270) days but not more than one (1) year prior to the
expiration of the initial Term of this Lease, or the then current Option Period.

      39.2 OPTION PERIOD BASE RENT. The Base Rent for each Option Period shall
be the fair market rental, determined as follows, but in no event less than the
Base Rent in effect for the last month preceding the applicable Option Period:

            (a) The parties shall have fifteen (15) days after Landlord receives
the Option Notice within which to agree on the Base Rent for the Option Period
based upon the then fair market rental value of the Premises as defined below.
If the parties agree on the Base Rent for the Option Period within fifteen (15)
days, they shall immediately execute an amendment to this Lease stating the Base
Rent for the Option Period.

            (b) If the parties are unable to agree on the Base Rent for the
Option Period within fifteen (15) days, then, the Base Rent for the Option
Period shall be of the then current fair market rental value of the Premises as
determined in accordance with the procedure set forth below.

            (c) The "then fair market rental value of the Premises" shall mean
the fair market base rental value of the Premises as of the commencement of the
Option Period, taking into consideration the uses permitted under this Lease,
the quality, size, design and location of the Premises, the duration of the
Option Period and comparable buildings located in the geographical area where
the Premises are located, including free rent, rent concessions, tenant
improvement allowances or other concessions or inducements that may be offered
to attract new tenants to a building.

            (d) Within seven (7) days after the expiration of the fifteen (15)
day period set forth in subparagraph (a), each party, at its cost and by giving
notice to the other party, shall appoint a M.A.I. appraiser ("Appraiser") with
at least five (5) years' full-time commercial appraisal experience in the area
in which the Premises are located to appraise and set the fair market rental
value for the Premises for the Option Period. If a party does not appoint an
Appraiser within ten (10) days after the other party has given notice of the
name of its Appraiser, the single Appraiser appointed shall be the sole
Appraiser and shall set the fair market rental value of the Premises. If the two
Appraisers are appointed by the parties as stated in this Section, they shall
meet promptly and attempt to agree upon the fair market rental value of the
Premises; provided, if they are unable to agree within 30 days but the highest
appraisal is not more than ten percent (10%) higher than the lower appraisal,
then the fair market rental value shall be the average of the two appraisals.

            (e) If the two (2) Appraisers are unable to agree within thirty (30)
days after the second Appraiser has been appointed and the higher appraisal is
more than ten percent (10%) higher than the lower appraisal, they shall attempt
to elect a third Appraiser meeting the qualifications stated in this Section
within ten

                                       1
<PAGE>   32
(10) days after the last day the two Appraisers are given to set the fair market
rental value of the Premises. If they are unable to agree on the third
Appraiser, either of the parties to this Lease, by giving ten (10) days' notice
to the other party, can apply to the then President of Contra Costa County Real
Estate Board, or then Presiding Judge of the Contra Costa County Superior Court,
for the selection of a third Appraiser who meets the qualifications stated in
this Section. Each of the parties shall bear one-half (-1/2) of the costs of
appointing the third Appraiser and paying the third Appraiser's fee. The third
Appraiser, however selected, shall be a person who has not previously acted in
any capacity for either party.

            (f) Within thirty (30) days after the selection of the third
Appraiser, a majority of the Appraisers shall set the fair market rental value
of the Premises. If a majority of the Appraisers are unable to agree upon the
fair market rental value of the Premises within the stipulated period of time,
the fair market rental value of the Premises shall be the average of the three
Appraisals; provided, however, if either or both the low appraisal and the high
appraisal vary by more than ten percent (10%) below or above the middle
appraisal, as the case may be, then the appraisal(s) that so vary(ies) by more
than ten percent (10%) shall be disregarded. If only one (1) appraisal is
disregarded, the fair market rental value shall be the average of the remaining
two (2) appraisals. If both the low appraisal and the high appraisal are
disregarded as stated in this Section, the middle appraisal shall be deemed the
fair market rental value of the Premises. After the fair market rental value of
the Premises has been set, the Appraisers shall immediately notify the parties.

            (g) Notwithstanding anything to the contrary herein, the Base Rent
for the first Option Period shall not be less than the Base Rent for the final
year of the Initial Term, and the Base Rent for the Second Option Period shall
not be less than the Base Rent for the final year of the First Option Period.

      39.3 OPTION PERSONAL. With the exception of Permitted Transfers defined in
Section 25.1 of the Lease, Tenant's options to extend the Term as provided in
this Addendum shall be personal to the original Tenant executing this Lease and,
notwithstanding the provisions of Section 25 of the Lease ("Assignment and
Subletting"), shall not be assignable to any other person under any
circumstances regardless whether Landlord consents or is required to consent to
a Transfer under Section 25, unless Landlord consents to the assignment of such
options which consent may be granted or withheld in Landlord" sole and absolute
discretion. Any assignee under a Permitted Transfer automatically shall have
extension rights set forth in Section 39 hereof.

      40. CONDITION PRECEDENT TO LEASE. It shall be a condition precedent to the
effectiveness of this Lease that Landlord shall acquire fee title to the land on
which the Premises are located. Landlord shall use good faith effort and
diligence to acquire fee title to the land on which the Premises are located. If
the purchase does not occur for any reason whatsoever by June 30, 2000, this
Lease shall thereafter be terminable by Tenant upon Tenant giving written notice
of termination to the Landlord at any time before such escrow closes, in which
event neither party shall have any further obligation or liability hereunder. If
the purchase does not occur for any reason whatsoever by August 31, 2000, this
Lease shall thereafter be terminable by Landlord upon Landlord giving written
notice of termination to the Tenant, in which event neither party shall have any
further obligation or liability hereunder. Upon Landlord's acquisition of fee
title to the land on which the premises are located, Landlord shall promptly
give notice of same to Tenant.

                                       2
<PAGE>   33
            IN WITNESS WHEREOF, the parties have executed this Addendum to Lease
effective as of the date first written above.

LANDLORD:              HARBOUR PROPERTIES, LLC
                       a California limited liability company

                       By: /s/ Bill R. Poland
                           ------------------------------------
                       Name: Bill R. Poland
                             ----------------------------------
                       Title:  Manager
                               --------------------------------

TENANT:                WIRELESS FULFILLMENT SERVICES LLC,
                       a California limited liability company
                       By:  Brightpoint, Inc., its Managing Member

                       By: /s/ Steven E. Fivel
                           -------------------------------------
                       Name: Steven E. Fivel
                            ------------------------------------
                       Title:  Executive Vice President, General
                                 Counsel and Secretary
                            ------------------------------------

                                       3
<PAGE>   34
                                    EXHIBIT A

                                    SITE PLAN

                                      A-1
<PAGE>   35
                                    EXHIBIT B

                                 WORK AGREEMENT

      THIS WORK AGREEMENT is executed pursuant to that certain Lease (Build to
Suit) dated April 25, 2000 by and between HARBOUR PROPERTIES, LLC, a California
limited liability company, as Landlord, and WIRELESS FULFILLMENT SERVICES LLC, a
California limited liability company, as Tenant ("Lease") and all of the terms
and conditions contained in this Work Agreement are hereby incorporated into the
Lease and made a part thereof. Capitalized terms not otherwise defined herein
shall have the meanings set forth in the Lease.

      1. BUILDING SHELL. Landlord shall construct the "Building Shell," (as
hereafter defined) at its sole cost and expense (except for any increased costs
caused by Tenant Delays, the cost of which shall be paid by Tenant), and Tenant
shall accept the Building Shell from landlord in its "as is" condition upon
delivery of possession to Tenant, subject to the terms and conditions hereof and
in the Lease. The "Building Shell" shall consist only of a concrete tilt-up
light industrial building shell comprised of hard-troweled finished concrete
floors and outside surfaces of exterior walls; roof with exposed trusses; no
HVAC or electrical distribution other than a main electrical panel and meter
adequate to provide 8 watts of electricity per rentable square foot of the
Premises (exclusive of HVAC); water-tight and weather-resistant as of the date
of delivery; with utilities stubbed to the Premises. Landlord's architect shall
prepare plans and specifications ("Building Plans and Specifications") for the
construction of the Building Shell substantially in accordance with the
preliminary schematics and space plan ("Preliminary Plans") which shall be
mutually approved by Landlord and Tenant, each party's approval shall not be
unreasonably withheld. Once the Preliminary Plans are submitted to Tenant for
its approval, Tenant shall have five (5) business days to provide its written
approval or reasonable disapproval. If the Preliminary Plans are reasonably
disapproved by Tenant, Landlord's architect shall make the revisions and
resubmit the Preliminary Plans to Tenant. Once resubmitted to Tenant, Tenant
shall have three (3) business days to approve or reasonably disapprove in
writing the resubmitted Preliminary Plans. If Landlord and Tenant cannot in good
faith mutually agree on the Preliminary Plans by July 1, 2000, Tenant may
terminate this Lease upon written notice to Landlord within ten (10) days
thereafter, in which event neither party shall have any further obligations or
liability hereunder. If written cancellation is not received by Landlord within
such ten (10)-day period, Tenant's right to cancel this Lease shall terminate
and be of no further force or effect. The Building Shell shall be completed by
Landlord (i) in accordance with the Building Plans and Specifications; (ii) all
applicable local, state and federal, laws, codes, statutes, rules, and
regulations; (iii) subject only to minor punch-list items as reasonably agreed
to by Landlord's architect and Tenant's architect as a result of walk-through of
the Building following substantial completion of the Building Shell.

      2.    TENANT IMPROVEMENTS.  Tenant shall design and construct the
Tenant Improvements (as hereafter defined), at its sole costs and expense
except for the TI Allowance provided for below, in accordance with the
terms of the Lease and this Work Agreement.

            2.1 TENANT IMPROVEMENT ALLOWANCE. Tenant shall be entitled to a
one-time tenant improvement allowance (the "TI Allowance") in the amount of
$29.00 per rentable square feet of the Building Shell (measured in accordance
with the most current BOMA standards) for the "Total Costs" (as defined below)
relating to the design and construction of the Tenant Improvements. In no event
shall Landlord be obligated to make disbursements pursuant to this Work
Agreement in a total amount which exceeds the TI Allowance. The "Tenant
Improvements" shall consist of the design and construction of all interior
portions of the Building to be constructed by Tenant in substantial accordance
with the plans and specifications approved by Landlord pursuant to this Work
Agreement (the "TI Plans"), including, but not limited to, electrical, HVAC and
plumbing distribution, interior corridors and partitions, floor coverings,
acoustical ceilings, window coverings, interior painting, and wall finishes,
lighting, telephone system, telecommunications systems, fire sprinkler and other
life safety systems, interior doors, frames and hardware, rooftop installations
in accordance with Section 9.3 of the Lease, any Storage Tank permitted under
Section 10.5 of the Lease, and any other improvements, additions and

                                      B-1
<PAGE>   36
installations necessary or appropriate for the conduct of Tenant's business in
the Premises and to obtain the issuance of a certificate of accuracy from the
City. Tenant Improvements specifically exclude the purchase and installation of
Tenant's Personal Property.

            2.2 TOTAL COSTS. "Total Costs" of the Tenant Improvements shall
include all reasonable and necessary sums actually paid to the general
contractor and to other contractors and subcontractors for labor and/or
materials, together with all other costs reasonably and necessarily incurred by
Tenant for construction of the Tenant Improvements, including but not limited to
the following: architectural and engineering fees; fees of other consultants and
professionals; permit fees and other costs of obtaining City permits and
approvals; traffic impact fees; utility fees; sales and use taxes and Title 24
fees; and any fees ("Oversight Fees") paid by Landlord to third parties to the
extent unaffiliated with Landlord, for overseeing and/or observing the
construction of the Tenant Improvements (and the compliance of such Tenant
Improvements with the TI Plans) in an amount not exceeding the lesser of (i)
five percent (5.0%) of the Total Costs, or (ii) prevailing fair market value
rates for such services. Notwithstanding the foregoing, if Tenant uses Aberthaw
West to construct the Tenant Improvements, no Oversight Fees shall be payable by
Tenant.

            2.3 DISBURSEMENT OF TI ALLOWANCE. The TI Allowance, to the extent
necessary to pay all or a portion of the Total Costs of the Tenant Improvements,
shall be disbursed to Tenant (except for the Oversight Fee) on the first day of
each month after Tenant Commences construction of the Tenant Improvements upon
satisfaction of the following conditions:

                  (a)   The Tenant Improvements have been Substantially
                        Completed in accordance with the approved TI Plans, as
                        certified in writing to Landlord by Tenant's architect
                        and reasonably agreed to by Landlord's architect,
                        subject only to minor punch-list items;

                  (b)   Tenant's architect certifies to Landlord and Landlord's
                        architect reasonably agrees that no substandard work
                        exists which would adversely affect any of the Building
                        systems or the structure of exterior appearance of the
                        Building;

                  (c)   the City has issued a certificate of occupancy for
                        the Tenant Improvements;

                  (d)   Tenant provides mechanics' lien releases from its
                        general contractor and from all subcontractors and other
                        suppliers of labor or materials or bonds over the same;

                  (e)   Tenant is not in default of its material obligations
                        under the Lease and no condition or event exists that,
                        with the giving of notice or passage of time, would
                        constitute a default by tenant under the Lease; and

                  (f)   Tenant provides copies of invoices from Tenant's
                        contractors for work performed as part of the Tenant
                        Improvement constituting permissible Total Costs in an
                        aggregate amount equal to or greater than the requested
                        TI Allowance disbursement amount.

            Landlord's disbursement of the TI Allowance shall not be deemed
Landlord's approval or acceptance of any work included in the Tenant
Improvements (however, in no event shall such TI Allowance be refundable to
Landlord by Tenant). Landlord shall only be obligated to disburse the TI
Allowance to the extent Tenant actually incurs permissible Total Costs (as
defined above) for the Tenant Improvements. Notwithstanding the foregoing,
Landlord may use a portion of the TI Allowance to pay the Oversight Fee and any
reasonable fee of Landlord's architect (to review and/or certify the Substantial
Completion of the Tenant Improvements) it may incur in connection with the
Tenant Improvements as permitted under Section 2.2 hereof. The TI Allowance

                                      B-2
<PAGE>   37
available for disbursement to Tenant shall be automatically reduced by the
amount of any such Oversight Fees and fees to Landlord's architect (as permitted
above) paid by Landlord.

            2.4 OTHER TENANT'S WORK. Any Alterations or improvements not
specifically defined in this Work Agreement or associated plans and
specifications that are required or desired by Tenant in connection with its
occupancy of the Premises shall be acquired and installed by Tenant at its sole
cost and expense, subject to the provisions of Section 12 of the Lease.

      3. CONTRACTOR AND CONSULTANTS. Tenant may select its architect, engineers,
contractor and other consultants designated by Tenant for the design and
construction of the Tenant Improvements, subject to Landlord's; approval of
same, which approval shall not be unreasonably withheld, conditioned or delayed;
provided, however, Tenant acknowledges that Landlord's financing source is
affiliated with certain labor unions and that Landlord's agreement with such
source requires that all contractors must be union contractors. Accordingly,
Tenant shall employ only union contractors and subcontractors for construction
of the Tenant Improvements and shall use its best efforts to cause such
contractors and subcontractors to employ personnel so as to avoid interruption
of the work on account of strikes, work stoppage or similar causes for delay or
disruption.

      4. CONSTRUCTION DRAWINGS

            4.1 SPACE PLAN. Tenant shall supply Landlord with four (4) copies
signed by Tenant of its space plan for the Premises ("Space Plan") before any
architectural working drawings or engineering drawings have been commenced. The
Space Plan shall include a layout and designation of all offices, rooms and
other partitioning, their intended use, and equipment to be contained therein.
Landlord may request reasonable clarification or more specific drawings for
special use items not included in the Space Plan. Landlord shall advise Tenant
in writing within five (5) business days after Landlord's receipt of the Space
Plan for the Premises if the same is materially inconsistent with other existing
Buildings in the Project or incomplete in any respect in Landlord's reasonable
discretion. If Tenant is so advised, Tenant shall promptly cause the Space Plan
to be revised to correct the same. If Landlord fails to respond in writing
within such five (5) business day period, then the Space Plan shall be deemed
approved by Landlord.

            4.2 FINAL WORKING DRAWINGS. After the Space Plan has been approved
as provided in Section 4.1 above, Tenant shall supply Tenant's architect with a
complete listing of standard and non-standard equipment and specifications,
including, without limitation, B.T.U. calculations, electrical requirements and
special electrical receptacle requirements for the Premises, to enable Tenant's
architect to complete the "Working Drawings" (as that term is defined below) in
the manner as set forth below. Upon the approval of the Space Plan as provided
in Section 4.1 above, Tenant shall promptly cause Tenant's architect to complete
the architectural and engineering drawings for the Premises, and Tenant's
architect shall compile a fully coordinated set of architectural, structural,
mechanical, electrical and plumbing working drawings in a form which is complete
to allow subcontractors to bid on the work and to obtain all applicable permits
(collectively, the "Working Drawings") and shall submit the same to Landlord.
Tenant shall supply Landlord with four (4) copies signed by Tenant's architect
of such Working Drawings. Landlord shall advise Tenant in writing within ten
(10) days after Landlord's receipt of the Working Drawings for the Premises if
the same is materially inconsistent with other existing Buildings in the Project
or incomplete in any respect, in Landlord's reasonable discretion. If Tenant is
so advised, Tenant shall immediately revise the Working Drawings to correct the
same. If Landlord fails to respond in writing to Tenant within ten (10) days
after receiving the Working Drawings, then the Working Drawings shall be deemed
approved by Landlord.

            4.3 APPROVED WORKING DRAWINGS. The Working Drawings shall be
approved in accordance with Section 4.2 hereof prior to the commencement of
construction of the Tenant Improvements by Tenant. After approval of the Working
Drawings in accordance with Section 4.2 hereof, Tenant may submit the same to
the City of Richmond for all applicable building permits. Tenant hereby agrees
that neither Landlord nor Landlord's consultants shall be responsible for
obtaining any building permit or certificate of occupancy for the

                                      B-3
<PAGE>   38
Premises and that obtaining the same shall be Tenant's responsibility; provided,
however, that Landlord shall cooperate with Tenant in executing permit
applications and performing other ministerial acts reasonably necessary to
enable Tenant to obtain any such permit or certificate of occupancy. No material
changes, modifications or alterations in the approved Working Drawings may be
made without the prior written consent of Landlord, which consent may not be
unreasonably withheld; provided, that Landlord may withhold consent in its sole
and absolute discretion with respect to any such revision that would materially,
adversely alter or change the Building Shell.

            4.4 EFFECT OF LANDLORD'S APPROVAL. Landlord's review of the
Construction Drawings as set forth in this Section 4, shall be for its sole
purpose and shall not imply Landlord's review of the same, or obligate Landlord
to review the same, for quality, design, Code compliance or other like matters.
Accordingly, notwithstanding that any Construction Drawings are reviewed by
Landlord or its space planner, architect, engineers and consultants, and
notwithstanding any advice or assistance which may be rendered to Tenant by
Landlord or Landlord's space planner, architect, engineers, and consultants,
Landlord shall have no liability whatsoever in connection therewith and shall
not be responsible for any omissions or errors contained in the Construction
Drawings.

      5. CONSTRUCTION OF TENANT IMPROVEMENTS

            5.1 COMMENCEMENT OF WORK. Prior to commencement of construction of
the Tenant Improvements, Tenant shall do the following: (a) provide at least 20
days' prior written notice to Landlord in order to allow Landlord to record and
post appropriate Notices of Nonresponsibility; (b) provide to Landlord a
complete list of all contractors and subcontractors (known at the time) that
will perform work on the project, together with copies of all construction
contracts entered into by Tenant; (c) provide evidence of satisfaction of the
insurance requirements set forth below; (d) assign to Landlord the benefit of
all warranties and guaranties relating to the Tenant Improvements or any portion
thereof; provided that after such assignment, Landlord shall be required upon
Tenant's request, to enforce all such warranties and guaranties; and (e) such
other matters as Landlord may reasonably request.

            5.2 INSURANCE. All Tenant's contractors, subcontractors and agents
shall carry worker's compensation insurance and public liability and property
damage insurance with limits, in form and with insurers as are required under
Section 21 of the Lease. Tenant shall also carry "Builder's All Risk" insurance
in an amount approved by Landlord covering the construction of the Tenant
Improvements, and such other insurance as Landlord may require, it being
understood and agreed that the Tenant Improvements shall be insured by Tenant
pursuant to Section 21 of the Lease immediately upon completion thereof. Such
insurance shall be in amounts and shall include such extended coverage
endorsements as may be reasonably required by Landlord. Certificates for all
insurance carried pursuant to this Section shall be delivered to Landlord before
the commencement of construction of the Tenant Improvements and before the
Contractor's equipment is moved onto the site. All such policies of insurance
must contain a provision that the company writing said policy will give Landlord
thirty (30) days' prior written notice of any cancellation or lapse of the
effective date or any reduction in the amounts of such insurance. In the event
that the Tenant Improvements are damaged by any cause during the course of the
construction thereof, Tenant shall immediately repair the same at Tenant's sole
cost and expense. Tenant shall maintain all of the foregoing insurance coverage
in force until the Tenant Improvements are fully completed and reasonably
approved by Landlord or Landlord's architect.

            5.3 INSPECTION BY LANDLORD. Landlord shall have the right to inspect
the Tenant Improvements at all times, provided however, that Landlord's failure
to inspect the Tenant Improvements shall in no event constitute a waiver of any
of Landlord's rights hereunder nor shall Landlord's inspection of the Tenant
Improvements constitute Landlord's approval of the same. Landlord shall
indemnify, protect, defend and hold harmless Tenant from and against any and all
damages, injuries, liabilities, costs and expenses (including attorney's fees)
related to or arising out of Landlord's inspection of the Tenant Improvements,
and Landlord waives all rights against Tenant relating to the same. If Landlord,
in its reasonable discretion, determines that any portion of the Tenant
Improvements has not been constructed materially in accordance with the Working

                                      B-4
<PAGE>   39
Drawings, Landlord shall notify Tenant in writing of the same. Any such
deviations shall be rectified by Tenant at no expense to Landlord, provided
however, that in the event Landlord determines in its reasonable discretion that
a deviation exists and such deviation is reasonably likely to adversely affect
the mechanical, electrical, plumbing, heating, ventilating and air-conditioning
or life-safety systems of the Building, the structure or exterior appearance of
the Building or any other tenant's use of such other tenant's leased premises,
Landlord may take such action as is reasonably necessary, at Tenant's expense
and without incurring any liability on Landlord's part, to correct any such
deviation including, without limitation, causing the cessation of performance of
the construction of the Tenant Improvements until such time as the deviation is
corrected to Landlord's reasonable satisfaction. Any other delay to Tenant's
construction of the Tenant Improvements caused by Landlord which is not
permitted hereunder shall be deemed a "Landlord Delay" for all purposes
hereunder and Tenant shall not be liable for any damages or liabilities relating
thereto.

            5.4 COOPERATION AND COMPLETION OF WORK. Tenant shall cause its
contractors to commence construction as soon as reasonably practicable after
issuance of all required permits and thereafter diligently pursue same to
completion in a good and workmanlike manner, in accordance with the Working
Drawings, as approved hereunder and in compliance with all applicable local,
state and federal building codes, laws, regulations and ordinances;
Environmental Laws; Americans with Disabilities Act and other laws and
regulations relating to handicapped access; seismic safety laws and ordinances;
Title 24 regulations; and other applicable Laws of any kind or nature.

            5.5 NOTICE OF COMPLETION; COPY OF RECORD SET OF PLANS. Within ten
(10) days after completion of construction of the Tenant Improvements, Tenant
shall cause a Notice of Completion to be recorded in the office of the Recorder
of the County of Contra Costa, California in accordance with Section 3093 of the
California Civil Code and shall furnish a copy thereof to Landlord upon such
recordation. If Tenant fails to do so, Landlord may execute and file the same on
behalf of Tenant as Tenant's agent for such purpose, at Tenant's sole cost and
expense. At the conclusion of construction, (i) Tenant shall cause Tenant's
architect (a) to update the approved Working Drawings as necessary to reflect
all changes made to the approved Working Drawings during the course of
construction, (b) to certify that the "record-set" of mylar as-built drawings
are true and correct, which certification shall survive the expiration or
termination of this Lease, and (c) to deliver to Landlord two (2) sets of copies
of such record set of drawings within thirty (30) days following issuance of a
certificate of occupancy for the Premises, and (ii) Tenant shall deliver to
Landlord a copy of all warranties, guaranties, and operating manuals and
information relating to the improvements, equipment, and systems in the
Premises.

                                      B-5
<PAGE>   40
            IN WITNESS WHEREOF, Landlord and Tenant have executed this Work
Agreement pursuant to the Lease.

LANDLORD:              HARBOUR PROPERTIES, LLC
                       a California limited liability company

                       By: /s/ Bill R. Poland
                           ------------------------------------
                       Name: Bill R. Poland
                             ----------------------------------
                       Title:  Manager
                               --------------------------------

TENANT:                WIRELESS FULFILLMENT SERVICES LLC,
                       a California limited liability company
                       By:  Brightpoint, Inc., its Managing Member

                       By: /s/ Steven E. Fivel
                           -------------------------------------
                       Name: Steven E. Fivel
                            ------------------------------------
                       Title:  Executive Vice President, General
                                 Counsel and Secretary
                            ------------------------------------

                                      B-6
<PAGE>   41
                                    EXHIBIT C

                          COMMENCEMENT DATE MEMORANDUM

      This Confirmation of Term of Lease is made by and between HARBOUR
PROPERTIES, LLC, a California limited liability company, as Landlord, and
WIRELESS FULFILLMENT SERVICES LLC, a California limited liability company, as
Tenant, who agree as follows:

      1. Landlord and Tenant entered into a Lease dated ____________________,
20___ (the "Lease"), in which Landlord leased to Tenant and Tenant leased from
Landlord the Premises described in Section 1.1 of the Lease (the "Premises").

      2. Pursuant to the Lease, Landlord and Tenant agree to confirm the
commencement date and expiration date of the Term of the Lease as follows:

            a.    _________________________, 20_____, is the Commencement
Date;

            b.    _________________________, 20_____, is the term
expiration date;

            c.    _________________________, 20_____, is the commencement
date of Rent under the Lease.

      3.    Tenant hereby confirms that the Lease is in full force and
effect and:

            a.    It has accepted possession of the Premises as provided
in the Lease;

            b.    The improvements and space required to be furnished by
Landlord under the Lease have been furnished;

            c.    Landlord has fulfilled all its duties of an inducement
nature;

            d.    The Lease has not been modified, altered or amended,
except as follows:_______________________________________________________; and

            e. There are no setoffs or credits against Rent and no security
deposit has been paid except as expressly provided by the Lease.

                                      C-1
<PAGE>   42
      4. The provisions of this Confirmation of Term of Lease shall inure to the
benefit of, or bind, as the case may require, the parties and their respective
successors, subject to the restrictions on assignment and subleasing contained
in the Lease.

      DATED:  _________________________, 20_____

LANDLORD:              HARBOUR PROPERTIES, LLC
                       a California limited liability company

                       By:____________________________________
                       Name:__________________________________
                       Title:_________________________________

TENANT:                WIRELESS FULFILLMENT SERVICES LLC,
                       a California limited liability company

                       By:____________________________________
                       Name:__________________________________
                       Title:_________________________________

                                      C-2
<PAGE>   43
                                    EXHIBIT D

                                GUARANTY OF LEASE

            In order to induce HARBOUR PROPERTIES, LLC, a California limited
liability company ("Landlord"), to enter into that certain lease (the "Lease")
dated April 25, 2000, with WIRELESS FULFILLMENT SERVICES, LLC, a California
limited liability company ("Tenant"), and for other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the
undersigned, BRIGHTPOINT, INC., a Delaware corporation ("Guarantor"), hereby
makes the following indemnification and agreements with and in favor of
Landlord:

            1. Guarantor hereby absolutely and unconditionally guarantees to
Landlord, (i) the full and punctual payment of all rent, moneys and charges
(including without limitation Rent), the unamortized TI Allowance and the
unamortized real estate brokerage commission payments made in connection with
the Lease payable under the Lease during the term thereof, any renewals thereof
and any holdover periods; (ii) the prompt and complete performance of each and
all of the terms, covenants, conditions and provisions contained in the Lease
which are to be kept, observed and performed by Tenant during the term thereof,
any renewals thereof and any holdover periods; and (iii) to pay all costs and
expenses, including reasonable attorneys' fees, which may be incurred by
Landlord in any effort to collect or enforce the Lease or the obligations of the
Guarantor hereunder, whether or not any lawsuit is filed, including without
limitation, all reasonable costs and attorneys' fees incurred by Landlord in any
bankruptcy proceeding and in any judicial or non-judicial foreclosure action.

            2. In the event of a default under the Lease, Guarantor waives any
right to require Landlord to (i) proceed against Tenant or pursue any rights or
remedies with respect to the Lease; (ii) resort to any security deposit or other
credit in favor of Tenant; (iii) resort to any property upon which Landlord has
an exclusive lien; or (iv) pursue any other remedy whatsoever in Landlord's
power. Landlord shall have the right to enforce this Guaranty regardless of (a)
the acceptance of additional security from Tenant, (b) the disability of Tenant,
or (c) the release or discharge of Tenant or any security for Tenant's
obligations under the Lease by Landlord or by others, or by operation of any
law.

            3. Without limiting the generality of the foregoing, the liability
of Guarantor under this Guaranty shall not be deemed to have been waived,
released, discharged, impaired or affected by reason of any waiver or failure to
enforce any of the obligations of Tenant under the Lease, or assignment of the
Lease, or the subletting of the Premises by Tenant, or by the expiration of the
Term, or the release or discharge of Tenant in any receivership, bankruptcy,
insolvency or other creditors' proceedings, or the rejection, disaffirmance or
disclaimer of the Lease by any party in any action or proceeding. The liability
of Guarantor shall not be affected by any repossession of the Premises by
Landlord; provided, however, that the net payments received by Landlord from any
reletting of the Premises, after deducting all costs and expenses of
repossession and/or reletting the same, including without limitation the
alteration and preparation of the Premises for new tenants, brokers' commissions
and attorneys' fees, shall be credited from time to time by Landlord to the
account of Guarantor and Guarantor shall pay any balance owing to Landlord from
time to time, immediately upon ascertainment. If there shall be any extension,
modification or alteration of the Lease or of the Premises (notice as to all of
which is hereby waived), the liability of Guarantor hereunder shall extend and
apply to the full and faithful performance and observance of all of the terms,
covenants, conditions and provisions of the Lease as so extended, modified or
altered.

            4. Guarantor hereby expressly waives any statute of limitations
affecting the enforcement hereof and any right of setoff or compensation against
amounts due under this Guaranty, and further waives notice of the acceptance of
this Guaranty and all notice of non-performance, non-payment or non-observance
on the part of Tenant of the terms, covenants, conditions and provisions of the
Lease. Guarantor agrees that Landlord may proceed against Tenant and the same
shall not constitute a discharge of Guarantor, and further agrees and accepts
that the exercise of certain rights hereunder may affect or eliminate
Guarantor's rights of subrogation against Tenant, and Guarantor expressly waives
any such rights.

                                      D-1
<PAGE>   44
            5. Guarantor hereby assigns to Landlord any rights Guarantor may
have to file a claim and proof of claim with respect to the Lease or this
Guaranty in any bankruptcy or similar proceeding of Tenant and any awards or
payments thereon to which Guarantor would otherwise be entitled.

            6. This Guaranty shall be one of payment, and performance and not of
collection. The obligations of two or more Guarantors hereto shall be joint and
several.

            7. The liability of Guarantor hereunder shall be primary, absolute
and unconditional. Guarantor shall, without limiting the generality of any of
the foregoing, be bound by this Guaranty in the same manner as though Guarantor
was the Tenant named in the Lease. This Guaranty is not contingent upon the
validity or the enforceability of the Lease.

            8. Guarantor agrees to execute and deliver to Landlord, from time to
time upon ten (10) days notice from Landlord, a certificate certifying (i) that
this Guaranty is unmodified and in full force and effect and (ii) to such other
matters as Landlord may reasonably request.

            9. All of the terms, agreements and conditions of this Guaranty
shall extend to and be binding upon Guarantor, its heirs, executors,
administrators, successors and assigns, and shall inure to the benefit of and
may be enforced by Landlord, its successors and assigns, and the holder of any
mortgage to which the Lease may be subject and subordinate from time to time.
Landlord may, without notice, assign this Guaranty, and no such assignment shall
diminish Guarantor's liability hereunder.

            10. If any provision of this Guaranty or the application thereof to
any person or circumstance shall, for any reason and to any extent, be invalid
or unenforceable, the remainder of this Guaranty and the application of that
provision to other provisions or circumstances shall not be affected but rather
shall be enforced to the fullest extent permitted by law.

            11. This Guaranty shall be governed by and construed in accordance
with the laws of the State of California.

            12. Capitalized terms not defined herein shall have the meanings
given them in the Lease.

                                      D-2
<PAGE>   45
            13. This Guaranty shall terminate and be of no further force or
effect if Tenant is purchased by any entity, or some or all of its employees, or
"spun off" by its parent corporation, and after any such transaction the Tenant
is publicly traded and has a net worth not less than Guarantor's net worth as of
the date of the Lease.

            IN WITNESS WHEREOF, the undersigned has executed this Guaranty this
25th day of April, 2000.

GUARANTOR:

BRIGHTPOINT, INC.,
a Delaware corporation

By:    /s/ Steven E. Fivel
       ------------------------------------------
Name:  Steven E. Fivel
       ------------------------------------------
Title: Executive Vice President and General
       Counsel
       ------------------------------------------

Address of Guarantor:

6402 Corporate Drive
--------------------------------
Indianapolis, IN  46278
--------------------------------

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

                                      D-3<PAGE>   1

                                                                   EXHIBIT 10.38

                                PLEDGE SUPPLEMENT

      Reference is hereby made to the Pledge Agreement (the "Pledge Agreement")
dated as of the 17th day of April, 1998, by and between Brightpoint, Inc. (the
"Pledgor") and The First National Bank of Chicago, whereby the Pledgor has
pledged certain capital stock of certain of its subsidiaries as collateral to
the Administrative Agent, for the ratable benefit of the Holders of Secured
Obligations, as more fully described in the Pledge Agreement. This Supplement is
a "Pledge Supplement" as defined in the Pledge Agreement and is, together with
the acknowledgments, certificates and Powers delivered herewith, subject in all
respects to the terms and provisions of the Pledge Agreement. Capitalized terms
used herein and not defined herein shall have the meanings given to them in the
Pledge Agreement, except that the term "Administrative Agent" shall mean Bank
One, Indiana, National Association, as successor to The First National Bank of
Chicago.

      By its execution below, the Pledgor hereby agrees that (i) the capital
stock of the corporation listed on the Schedule I hereto shall be pledged to the
Administrative Agent as additional collateral pursuant to Section 1.1(a) of the
Pledge Agreement, (ii) such property shall be considered Pledged Stock under the
Pledge Agreement and be a part of the Pledged Collateral pursuant to Section 1
of the Pledge Agreement, and (iii) each such corporation listed on the Schedule
I hereto shall be considered a Pledged Subsidiary for purposes of the Pledge
Agreement.

      By its execution below, the Pledgor represents and warrants that it has
full corporate power and authority to execute this Pledge Supplement and that
the representations and warranties contained in Section 5 of the Pledge
Agreement are true and correct in all respects as of the date hereof and after
taking into account the pledge of the additional Pledged Stock relating hereto.

      IN WITNESS WHEREOF, the Pledgor has executed and delivered this Pledge
Supplement to the Pledge Agreement as of this 1st day of January, 2001.

                                    BRIGHTPOINT, INC.

                                    By: /s/ Steven E. Fivel
                                        -----------------------------------
                                        Steven E. Fivel, Executive
                                        Vice President and Secretary
<PAGE>   2
                                   SCHEDULE I
                                       TO
                                PLEDGE SUPPLEMENT

                            ADDITIONAL PLEDGED STOCK

<TABLE>
<CAPTION>
                                       Shares of Common
                                       Stock owned by
                                       the Pledgor Subject
Name                                   To Pledge                Certificate Number
----                                   ---------                ------------------
<S>                                       <C>                   <C>
Brightpoint North America, Inc.           100                            001
</TABLE>

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