CONTRACT OF LEASE

     With the present contract,  Mr. Prati Ing. Roberto,  residing in Borzano di
Albinea  (RE)  on  Via  Naborre  Campanili,   2/1,  in  the  capacity  of  Legal
Representative of the firm PRAGMATA S.R.L.,  having legal offices on Via Munari,
15, 42019 SCANDIANO (RE), and fiscal code and VAT Registration No.  01114900358,
being proprietor of an industrial shed in Pratissolo di Scandiano (RE) on Via J.
Nagy, 7, and C.G.T.I.  Classica Group Technologies Italia S.r.l., having offices
in Pratissolo di Scandiano (RE), on Via J. Nagy n. 7, and VAT  Registration  No.
01978670352,  with  representation  in this transaction by Legal  Representative
Riemer  Joseph,  born in Ramat,  Israel,  on 26 July 1948,  and residing at 1835
Swathmore  Avenue,  Lakewood,  New  Jersey,  The  United  States,  agree  to the
following:  The  firm  Pragmata  S.r.l.  agrees  to  grant a  lease  for one (1)
Laboratory,  one (1) Technical Office and one (1) Office. The space must be used
exclusively for laboratory and/or office purposes, as stipulated herein;
-    The  Lessee  may not  grant  a third  party  the  use of its  space  or its
     furnishings, without the consent of the property owner;
-    All expenses related to maintenance,  as well as ordinary and extraordinary
     repairs,  possibly  necessary or useful for the optimal  utilization of the
     space as intended, are the responsibility of the Lessee.

ARTICLE 1-- TERM OF LEASE & ADMINISTRATIVE EXPENSES
     It is agreed that the term of the lease shall be four (4) years, commencing
on 15 December 2001 and therefore terminating on 14 December 2005.
     The contract may be implicitly  extended  from year to year,  until at such
time that one of the parties shall serve to terminate it, in accordance with the
procedure recommended.
     The Lessee may withdraw  from the  contract,  following  completion  of the
first year of the  lease,  also at any time  prior to the  contract  termination
date,  by  providing  such notice at least  twelve  (12) months in advance.  The
Lessor may withdraw from the contract in accordance with the law.
     It is agreed that for the first year, the rental fee,  augmented by the VAT
in accordance  with the law, shall be ITL 3,500,000  (Three Million Five Hundred
Thousand  Italian Lire) monthly,  equivalent to EUR 1,807.60 (One Thousand Eight
Hundred Seven Euro and Sixty Euro Cents). Beginning with the commencement of the
second year, the rental fee shall be amended in accordance  with the intervening
variation in ISTAT, and henceforward until the contract termination date.
     This shall be  accomplished  in  quarterly  installments  by means of check
and/or bank transfer on behalf of the "Lessee Party," without being requested or
directed.  All expenses  related to the furnishing of water,  electrical  power,
heat and air  conditioning,  purging of the sewage system and trash  collection,
shall be entirely the responsibility of the Lessee Party.
     All expenses and  obligations  concerning the use of the leased space shall
continue to be the responsibility of the Lessee.

ARTICLE 2-- DEFAULT
     Failure to make payment, even in part, within the deadlines agreed to, even
of the single installment of a rental fee or of any of the aforementioned  types
of  expenses,  once  the  maximum  allowed  term of  eight  (8)  days  from  the
intervening  deadlines has passed,  shall result in the immediate  rescission of
right in the present  contract,  enacted at the sole will of the Lessee,  to any
claims  of  damage  or  reimbursement  of any  expenses  deriving  therein.  The
rescission  of right  shall also take  effect in the event of  violation  of the
obligations related to the repair and the intended use of the leased space.

ARTICLE 3-- PURPOSE OF LEASE AND GENERAL RULES
     The leased  premises  governed  by the  present  contract  are  exclusively
intended for activities predetermined by the prevailing P.R.G., exclusive of any
other purpose hereafter expressly prohibited and rescinded. The subletting, even
in part, of the leased premises,  and the further  subdivision of the space into
units of a size smaller than that which is leased, is prohibited.

ARTICLE 4-- USE OF LEASED PREMISES
     The Lessee Party,  who is appointed  custodian of that which is leased,  is
obligated to use and maintain the same with due and proper diligence.
     The Lessee Party is  obligated,  on behalf of himself and of other  persons
given entry to the leased space, to carry out good neighborly relations;  to not
cause noises,  disturbances or anything else exceeding normal tolerability;  and
to not give rise to unpleasant odors.

ARTICLE 5-- DELIVERY
     The Lessee Party affirms that it has visited the premises to be leased, and
has found them to be of recent construction and suitable for the use agreed to.

ARTICLE 6-- REPAIRS & DAMAGES
     The  Lessor  must  perform,  during the term of the  lease,  all  necessary
repairs,  except for those  related to routine  maintenance  which  would be the
responsibility of the Lessee.
     When the leased space necessitates  repairs that are not the responsibility
of the Lessee, notice of same must be provided to the Lessor.
     If, during the term of the lease,  the leased space  necessitates  a repair
which cannot be postponed until the termination of the contract, the Lessee must
endure this  situation,  regardless of the resulting loss of use of a portion of
the leased space.
     If the execution of the repairs  continues for more than one-sixth (1/6) of
the term of the lease and,  nevertheless,  for more than twenty  (20) days,  the
Lessee has the right to a  reduction  in the amount due,  proportional  with the
entire term of the same repairs and the extent of the resulting loss of use.
     The Lessee Party must nevertheless be alerted  immediately about any of the
aforementioned types of repairs.

ARTICLE 7-- CIVIL LIABILITY
     The Lessee Party expressly exempts the Lessor Party from any responsibility
for direct and indirect  damages  possibly  deriving  from  wrongful or culpable
actions  on the part of the  dependents  of the  Lessee or of third  parties  in
general.  In  particular,  the Lessee  Party is  obligated  to sign an  adequate
insurance policy guaranteeing third party civil liability responsibility.

ARTICLE 8-- CONCLUSION OF LEASE AND SURRENDERING OF PREMISES
     On the date of cessation of the  contract,  the Lessee  Party,  or a person
designated by the same, shall surrender to the Lessor all leased premises in the
same state in which  they were  delivered,  exclusive  of wear and tear from use
and, as documentation,  attached  photographs signed by the parties.  Failure to
surrender and/or deliver in a timely manner shall, in various circumstances,  be
cause for the compensation for damages.
     Three months prior to the lease  termination date, or in the event that the
owner  intends to sell the space  with  respect  to said  contract  and upon its
regular  termination  date,  the  Lessee  Party  shall  be  required  to  permit
visitation  to  the  unit,  with  advance  notice,  exclusive  of  holidays  and
visitation of the leased premises by potential new owners.

ARTICLE 9-- CONTRACT TAXES, FEES & EXPENSES
     All  expenses  related  to the  present  contract,  inclusive  of any costs
relative  to stamps,  records  and  receipts,  as well as the  execution  of the
contract, are the responsibility of the Lessee and the Lessor in equal parts.
     The  expenses  and  fees  related  to  possible  judicial,   refundable  or
non-refundable cancellation of the contract are the responsibility of the Lessee
Party,  even in the way of  reimbursement of loans advanced by the Lessor in the
name of the Lessee.

ARTICLE 10-- DOMICILE OF LESSEE PARTY
     For all intents and  purposes  of the  present  contract,  and also for the
notification  of  possible  judicial  actions,  including  those  related to the
procedural  validation  of  licenses,  eviction or  execution,  the Lessee Party
affirms to have elected domicile in the leased premises,  even in the event that
said Lessee Party should subsequently not use them any longer.

ARTICLE 11-- MODIFICATIONS TO CONTRACT
     No  modifications  to the present  contract shall have an effect or a value
which has not been agreed to or drafted in writing, under pains of annulment.

ARTICLE 12-- DESCRIPTION OF LEASED SPACE
     Portion of shed in  Pratissolo  (RE),  Via J. Nagy, 7 - south side;  Use of
laboratory,  approx. 100 sq. m.; Office on first floor,  southeast side, approx.
150 sq. m.; and Office on the first floor, east side, approx. 100 sq. m.

ARTICLE 13-- COMPETENT COURT
     For controversies  deriving from the present contract,  the competent Court
shall be that of Reggio Emilia.

ARTICLE 14-- RULES OF LAW
     With regards to that which is not expressly  predetermined by the contract,
the rules of law pertaining to the manner at hand shall prevail,  as shall local
practices.

In confirmation and acceptance, the parties sign hereunder:

Reggio Emilia

THE LESSOR PARTY                            THE LESSEE PARTY


PRAGMATA s.r.l.
Via Munari, 15-- Tel. 0622.591123
42019 SCANDIANA (Reggio. E)