ASSIGNMENT OF LEASES AND RENTS



                                                                Loan No. 192486



     ASSIGNMENT  AGREEMENT  made this 18 day of MARCH , 1998,  between  TELEBYTE
TECHNOLOGY,  INC., a domestic  corporation,  conducting  business at 270 Pulaski
Road, Greenlawn,  New York 11740,  hereinafter referred to as the mortgagor, and
HOME FEDERAL  SAVINGS  BANK, as successor in interest to The Union Savings Bank,
having a principal office at 62 South Ocean Avenue,  Patchogue,  New York 11772,
hereinafter referred to as mortgagee.

     WHEREAS, the mortgagor is the owner of certain premises in the State of New
York, more particularly  described in Schedule "All which is attached hereto and
made a part thereof, hereinafter referred to as the mortgaged premises; and

     WHEREAS,  the  premises  described in Schedule  "All are the same  premises
described  in a certain  Modification  Agreement  made by the  mortgagor  to the
mortgagee  dated  the . 18TH - day of MARCH ' 1998,  and to be  recorded  in the
office of the Clerk of the County of Suffolk; and

     WHEREAS,  it is a condition to the granting of this Modification  Agreement
that all leases now or  hereinafter  in force or effect con  cerning any part of
the mortgaged premises as described in Schedule "All be assigned and transferred
to the mortgagee as additional security for the said loan, together with all the
rents  which may become due and  payable  under the leases or any  extension  or
renewal thereof.

     NOW,  THEREFORE,  in  consideration  of the premises and for other good and
valuable  consideration,  the parties hereby agree as follows:

1. The mortgagor does grant, bargain,  sell, assign,  transfer and set over unto
the mortgagee,  its successors and assigns, all the rights and privileges of the
mortgagor under all leases including the rents to accrue therefrom together with
any and all rents  which may  become due and  payable  under or by virtue of any
other lease, written or oral, or under or by virtue of any agreement for the use
or occupancy of any part of said mortgaged premises.





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2. Until such time as the  mortgagor may default in the payment of principal and
interest or other indebtedness  secured by the note and mortgage herein referred
to or in  performance  of any other  obligations  hereunder,  the  mortgagor may
collect all rents  arising  under the  aforementioned  leases from the mortgaged
premises  when the same are due  payable  and retain the same.  In the event the
mortgagor  defaults herein,  the mortgagee may at its option,  without notice or
regard to the adequacy of the security,  by its agents,  take  possession of the
above described  mortgaged  premises and hold, lease and manage the same on such
terms and for such a period of time as the  mortgagee  deems proper and, with or
without taking possession of the premises,  make demand and sue for all rents of
the premises,  with power to make from time to time, such  alterations,  repairs
and renovations  that may seem proper to the mortgagee,  and apply such rents to
the payment of all expenses of operating, managing and maintaining the mortgaged
premises,  and the principal and interest and other indebtedness  secured by the
note and mortgage, together with the costs and attorney's fees, in such priority
as the  mortgagee  in its sole  discretion  may  determine.  not be obligated to
perform  or  discharge  any  obligation  or duty  under the lease or under  this
assignment,  and mortgagor  agrees to indemnify the mortgagee for any liability,
loss or  damage  which  may be  incurred  under  the  lease or by reason of this
assignment in the event the mortgagee  incurs any such liability  above referred
to or in defense of any such claims or demands,  the amount  thereof,  including
costs and reasonable attorney's fees shall be secured by this assignment and the
mortgagor shall reimburse the mortgagee  immediately therefor upon the demand of
the mortgagee. Further, this assignment shall not make the mortgagee responsible
for any waste committed on the property by the tenants or any other parties,  or
for any dangerous or defective condition of this premises, or for the negligence
in the management, repair and control of the premises.

4. Upon payment in full of principal, interest and other indebtedness secured by
this assignment or other instruments  referred to herein,  this assignment shall
cease, but the affidavit of statement of the mortgagee or any agent, officer, or
attorney  of the  mortgagee  showing  any part of  principal,  interest or other
indebtedness  remaining  unpaid  shall  constitute  conclusive  evidence  of the
effectiveness  and force of this assignment and any person is authorized to rely
thereon.

5. The  mortgagor  hereby  agrees to notify  all the  lessees  of the  mortgaged
premises of this assignment and covenants and agrees that up to the date of this
assignment the mortgagor has




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faithfully  performed  and fulfilled all covenants of said leases and during the
term of the leases,  and so long as the mortgage  herein referred to shall be in
effect the  mortgagor  will  continue  to  faithfully  perform  and  fulfill all
covenants under any lease to be performed as lessor,  and the mortgagor will not
by  failure  or fault at any time  during the term of this lease give any lessee
cause to terminate their lease. The mortgagor  further covenants and agrees that
all lessees have, up to the date of this  agreement,  fully paid all the rentals
and other  payments  due as required  under the leases,  the  mortgagor  has not
assigned  any  interest  thereunder  and has in all  other  respects  faithfully
performed  the  covenants  thereof,  and  is  not in  default  under  any of the
respective leases.

6. The mortgagor  further agrees that if any breach of covenant or other default
in the terms of any lease occurs,  whether  caused or claimed to be caused by it
or the  mortgagor  or by the lessee,  the  mortgagor  will  promptly  notify the
mortgagee thereof in writing, and will give the mortgagee reasonable opportunity
to  investigate,  and if possible  to correct  the  default or other  breach and
otherwise to protect its rights under this assignment.

7. Nothing  contained in this  assignment  nor in any act done or omitted by the
mortgagee  pursuant to the terms of the  assignment  shall be deemed a waiver by
the  mortgagee  of any of the  rights or  remedies  under the note and  mortgage
hereinbefore mentioned, and this assignment is executed without prejudice to any
rights  or  remedies  possessed  by the  mortgagee  under the terms of any other
instruments  referred  to herein.  The right of the  mortgagee  to  collect  the
secured  principal,  interest and other  indebtedness,  and to enforce any other
security,  may be exercised by the  mortgagee  prior or subsequent to any action
taken under this assignment.

It is further  understood  that no  security  deposited  by any lessee  with the
mortgagor under the terms of any lease hereby  assigned has been  transferred to
the mortgagee  who assumes no Schedule  "All herein  whether said lease has been
made prior hereto or is entered  into in the future. 

10. The mortgagor hereby appoints the mortgagee, its attorney in fact to demand,
receive and enforce payment and to give receipts, releases and satisfactions and
to sue for all sums payable




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either in the name of the  mortgagor or in the name of the  mortgagee,  with the
same force and effect as if the  mortgagor  had done if this  agreement  had not
been made. 

11. This assignment  together with all the agreements,  covenants and
warranties  contained  herein  shall inure to the benefit of the  mortgagee  and
subsequent  holder  of the note and  mortgage  and  shall  be  binding  upon the
mortgagor and any subsequent owner of the premises.

     IN WITNESS  WHEREOF,  the parties hereto execute this agreement the day and
year first above written.

HOME FEDERAL BANK                               TELEBYTE TECHNOLOGY, INC.

By /s/Tom B. Ford                               By: /s/ Michael Breneisen
                                                          Michael Breneisen
Title: Vice President                           Title:    Vice President

     STATE OF NEW YORK, COUNTY OF SUFFOLK SS.:

     On the 18TH day of MARCH 1998,  before me personally came Michael Breneisen
, to me known, who being by me duly sworn, did depose and say that he resides at

That  he is  Vice  President  of  TELTBYTE  TECHNOLOGY,  INC.,  the  corporation
described in and which executed the foregoing instrument; and that he signed his
name thereto by order of the Board of Directors of said Corporation.





                                                                  Notary Public



   STATE OF NEW YORK, COUNTY OF SUFFOLK   : SS.:



On the 16 day of MARCH 1998,  before me personally came Mark E. Sheridan,  to me
known,  who being by me duly  sworn,  did  depose  and say that he resides at 10
Wellington  Road,  Garden City, New York ; that he is the Vice President of HOME
FEDERAL SAVINGS BANK, the corporation




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described in and which  executed the foregoing  instru- ment; and that he signed
his name thereto by order of the Board of Directors of said corporation







Notary Public






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