Agreement concerning the lease of commercial Premises                  EXH10-21


The following Lease is hereby entered into by and between

Sico Jena GmbH Quarzschemelze
Goshchwitzer Str. 20
07445 Jena

-the Lessor-

and

FiberCore Jena GmbH
Goschwitzer Str. 20
07445 Jena

-the Lessee-

#1.      Premises to be leased

a.       The premises located in Production Hall Building 42
         (see Schedule 1 Plan of Premises)

         in

         Goschwitzer Str. 20
         Shall be leased for the operation of a
         factory for manufacturing optical fibers
         (type of business or commercial activity).

         The following Premises shall also be leased:
         100 square meters of outside space (open areas, garages)

         Both parties  acknowledge that the total area of the Leased Premises is
2,621,000  square meters.  This area shall form the basis of any calculation for
increases in rent, the settlement of ancillary costs etc., regardless of whether
actual measures result in any deviation.

2.       The following may also be use (parking spaces, etc.): 40 parking spaces
         outside Building 42 for an annual rental of DM 4,500.00

3.       The main keys  (gate,  building  entry  etc.)  shall be  release to the
         Lessee immediately upon its taking occupancy of the Premises.


<PAGE>



#2.      Duration and termination of Lease

1.       The lease shall come into effect on 1 September 1995

         The Lease shall expire on June 30, 2000.

         The lease  term  prolongs  automatically  for  another 6 months  unless
         FiberCore  Jena GmbH elects not to renew the  contract six months prior
         to  contract  expiration.  The  tenant,  has the right to demand  lease
         extension  of 1 to 25 years  (Option) 3 months prior to the first lease
         expiration  and the right to prolong the newly  agreed  terms again and
         repeatedly, until the maximum term of 25 years has been used up.

2.       Any amendments to the  provisions  set out the second  paragraph of (1)
         above shall be in writing only and  communicated  to the other party by
         no later than on the final working day prior to the commencement of the
         period of notice.

3.       The Lessor  shall be entitled  to  terminate  the Lease with  immediate
         effect and without first giving notice  provided that this is warranted
         by a material reason.  Such a material reason shall be deemed to be the
         Lessee's  failure  to comply  with its  contractual  obligations  (e.g.
         arrears of more than three monthly  rentals in spite of having received
         a  reminder).  Any  reminders  that may be  necessary  shall be sent to
         Nicolai A. Siddig,  Attorney at Law,  Thichallee 32, 14195 Berlin,  and
         Dr. Mohd Aslami, 174 Charlton Road, P.O. Box 206,  Sturbridge,  MA, USA
         01566.

4.       Upon  expiry of the  Lease,  #568 of the German  Civil  Code  (implicit
         renewal) shall not apply to either Party. All agreements to continue or
         renew the Lease after expiry shall be in writing only.

#3.      Rental and ancillary costs

1.       The rental shall equal per month (see Schedule 5)          DM 44,674.00

         (forty-four thousand six hundred and seventy-four)

         15% V.A.T.                                                 DM  6,701.00

         Total                                                      DM 51,376.00

2.       Any  operating  costs not specified in this Lease shall be deemed to be
         include in the rental.

#4.      Payment of rental and heating costs

1.       The rental and ancillary costs referred to in #3 (1) above shall be due
         monthly in advance and shall be remitted to the Lessor by no later than
         the third working day of the month by credit transfer to Account No. 25
         836 3100 at Commerzbank Jena (BLZ 820 40 00)


<PAGE>



         quoting the rental debtor number 20153. Payment shall be deemed to have
         been  remitted on time only provide that is received by the deadline in
         question,  i.e.  it shall not be  sufficient  for  payment to be merely
         dispatched by this date.

2.       The advance  payment  covering  heating  cost (see #5) shall be settled
         with the Lessee once a year  effective  as of December  31,  1995.  Any
         shortfall  shall be paid or  excess  payment  credited  in the  quarter
         following the cut-off date for settlement.

#5.      Joint heating and hot water supplies

1.       The Lessors  undertakes  to provide  central  heating  whenever this is
         warranted by outside  temperatures,  and in any case, between October 1
         and April 30. Hot water  supplies  shall be  available at all time with
         the exception of brief interruptions.

2.       The Lessee  undertakes  to pay to pro-rata  operating  and  maintenance
         costs of the heating facilities for the parts of the equipment which it
         owns.

3.       The operating  costs shall be  apportioned  by the Lessor in accordance
         with the statutory  regulations  for settling  such costs,  i.e. on the
         basis of the  usable or  converted  space  and  using a formula  taking
         account of heat  consumption.  Where heat measuring  devices and/or hot
         water,  the Lessee shall directly bear all operating,  maintenance  and
         cleaning  costs  provided that it has installed such heaters or boilers
         itself.  They shall be serviced and cleaned at least once a year, proof
         of which shall be made available to the Lessor on request.

#6.      Use of lifts

1.       The Lessee is entitled to use the lifts adjacent to the lease Premises.

2.       The  Lessee  shall  not be  entitled  to  insist  on the  uninterrupted
         availability of the lifts in the event of any  disruptions.  The Lessee
         undertakes to comply with all points of the  regulations  governing the
         use of lifts.  Any repairs to the lifts must be performed as quickly as
         possible.

#7.      State of Premises

The Lessee  undertakes  to keep the Premises  clean.  All  contamination  of the
surroundings,  the building and the external  areas must be avoided.  The lessee
shall treat the  Premises  carefully  and maintain and return them in an orderly
state of repair.

#8.      Offsetting of accounts, retention of payments

The  Lessee  shall be  entitled  to offset  rentals  against  counter-claims  or
exercise a right of  retention  in respect  thereof if it informs  the lessor in
writing  of its  intention  to do so at least on month  prior to the  rental  in
question becoming due for payment.


<PAGE>



#9.      Use of Premises, subletting

1.       The  Lessee  may  only use the  Premises  for the  commercial  purposes
         described  in #1  hereto.  Any  changes  to the  purpose  for which the
         premises are used shall  require the Lessors  written  approval,  which
         approval shall not be unreasonably withheld.

2.       The  Premises  may only be sublet to or used by third  parties with the
         Lessor's  written  approval,  which approval shall not be  unreasonably
         withheld.

#10.     Advertising

1.       The Lessee shall be entitled to affix a sign of an appropriate  size to
         the area set aside by the Lessor for this purpose, i.e. the advertising
         holder at Gate 69. If a joint sign holder is available or  constructed,
         the Lessee undertakes to use it and to assume a proportionate  share of
         the costs.

2.       Other  fitting  used  for  advertising  or sales  purposed  may only be
         affixed to the external  walls or the windows of the building  (company
         sign,  logos,  slogans,  showcases,  vending  machines,  etc.) with the
         Lessor's express written permission.

3.       The Lessee shall be liable for all damage  arising in  connection  with
         these fittings.

4.       The Lessee shall be solely responsible for complying with technical and
         official  regulations  concerning  the manner in which the  fitting are
         affixed and maintained and for taking all such necessary measures.

5.       The Lessee's advertising fitting already in existence may be kept.

#11.     Repairs and structural modifications performed by the Lessor

1.       The Lessor shall be entitled to perform any such repairs or  structural
         modification  without  the  Lessee's  approval as may be  necessary  to
         preserve  the building or the  Premises,  to ward off any dangers or to
         remedy damage. This shall also apply to work which is not necessary but
         appropriate,  e.g.  modernization of the building and the Premises. The
         Lessee undertakes to ensure that the rooms concerned are accessible and
         to refrain from impending or delaying work.  Changes for the extensions
         as well as for Preform  and the fiber  production  facilities  shall be
         permitted (pursuant to Sketch 10 as attached).

2.       The Lessor shall inform the Lessee of such  structural  modification in
         good  time  and  ensure  that  the  structural   modifications  do  not
         unreasonably interfere with the Lessee's business operations.


<PAGE>



#12.     Structural modifications performed by the Lessee

1.       Structural   modifications   performed  by  the  Lessee,   particularly
         conversion,  additions,  installations  and the  fitting  of grilles to
         windows,  shall require the Lessor's  written  approval.  If the Lessor
         grants its approval,  the Lessee shall be  responsible  for gaining the
         necessary permits and shall bear all expenses involved. Changes for the
         extensions as well as for Preform and the fiber  production  facilities
         shall be permitted (pursuant to Sketch 10 as attached).

2.       The Lessee shall be entitled to remove any fittings  which it has added
         to the Premises. However, the Lessor shall be entitled to request that,
         upon the expiry of the Lease,  such  fittings  by left on the  Premises
         provided that the Lessor pays a sum of money  equaling the market value
         for the fittings in  question.  The Lessor and Lessee shall come to any
         agreement on such matters prior to the Premises being  vacated.  If the
         Lessor does not acquire the fitting installed by the Lessee, the latter
         shall return the Premises to their  previous  state and perform all the
         necessary work for this purpose prior to the expiry of the Lease.

3.       The Lessee shall be liable for all damage  arising in  connection  with
         any construction work which it performs.

#13.     Repairs and Maintenance

1.       The Lessee shall be liable towards the Lessor for any damage arising as
         a result of the former's  culpable  failure to observe its duty of car.
         Similarly, it shall be vicariously liable for damage culpably caused by
         its associated, staff, subtenants, visitors, suppliers, craftsmen etc.

2.       The Lessee  undertakes  to keep the Premises  free of vermin at its own
         expense.  The Lessee shall only be able to claim that the Premises were
         infested  with  vermin  prior to the  commencement  of the lease if its
         submits  a  declaration  to  this  effect  by  a  pest  control  expert
         immediately after taking occupancy of the Premises.

3.       The  Lessee  shall  immediately  remedy  all  damage  for  which  it is
         responsible.  If it fails to comply with this duty within a  reasonable
         period of time after receiving a written  warning,  the Lessor shall be
         entitled to perform the necessary work at the Lessee's expense.  In the
         event of imminent  danger or if the Lessee's  whereabouts  are unknown,
         the Lessor shall be entitled to dispense with issuing a written warning
         and setting a deadline.

#14.     Security

The Lessee shall be responsible for the security of the leased Premises.


<PAGE>



#15.     Lessors right to enter the Premises

1.       The Lessor  and/or its nominee  shall be entitled to enter the Premises
         during normal office hours for the purposes of examining their state or
         for any other important reason. In the event of imminent danger,  entry
         shall be permissible at any time of the day or night.

2.       If the Lessor plans to sell the  property,  it and/or  nominee shall be
         entitled  to  enter  the  Premises  during  normal  office  hours  with
         potential  buyers,  -  with  the  exception  of  any  of  the  Lessee's
         competitors.  If  either  party has given  notice of its  intention  to
         terminate the Lease, the Lessor and/or its nominee shall be entitled to
         enter the Premises during normal office hours with potential buyers. If
         either party has given notice of its  intention to terminate the Lease,
         the Lessor  and/or its nominee  shall be entitled to enter the Premises
         during normal office hours together with potential new lessee.

#16.     Termination of the Lease

Upon the  termination  of the Lease,  the Lessee shall release the Premises in a
state ready for  immediate  occupancy  and hand over to the Lessor all keys with
which it was provided.

#17.     Liability in the event of any disruptions in utility supplies

Electricity

The  Lessor  shall  only be liable  for any  disruptions  or  irregularities  in
electricity  supplies to the extent that the utility  supplying the  electricity
(Stadtwerke  Jena GmbH) is liable  towards  the  Lessor  (see  Ordinance  on the
General  Conditions  for the Supply of  Electricity  to  Special-Rate  Customers
(AVBEltV) of June 21, 1979.

District Heating

The  Lessor  shall  only be liable  for any  disruptions  or  irregularities  in
supplies  of  district  heating to the extent  that the  utility  supplying  the
district heat (Stadtwerke Jena GmbH) is liable towards the Lessor (see Ordinance
on the general  Conditions  for the Supply of District  Heating to  Special-Rate
Customers (AVB Fernwarme) of June 20, 1980).

#18.     Change in corporate status, sale of operations

The Lessee shall inform the Lessor without delay of any changes to the corporate
status  of its  company  or any  modifications  to its  entry  in the  companies
register, business registration or any matters of importance for the Lease.

#19.     Miscellaneous provisions

Any  amendments or additions to the Lease shall be in writing  only.  This shall
also apply to any amendments or additions to the provision.


<PAGE>



If any of the provisions in the Lease are ineffective either in part or in full,
this shall have no effect on the validity of the remaining  provisions.  In this
case, the parties undertake to replace the ineffective  provisions with one that
comes as legally close as possible to the original  intent of the Lease.  If any
provisions relating to the performance of contractual obligation or to deadlines
are  ineffective,  they shall be replaced by such provisions as are provided for
by statute.

In all other cases, the relevant statutory provisions shall apply.

Garbage  and  industrial  waste  shall be  disposed of by Sico Jena GmbH and the
Lessee  charged  separately for this service except where it disposes of garbage
and industrial waste itself.

The  Lessee  shall be  responsible  for  ensuring  compliance  with  regulations
governing occupational safety and fire protection on it Premises.

The Lessee shall be responsible  for complying with all statutory  regulation in
the area of environmental protection.

The Lessee shall be liable for any damage  incurred by the Lessor as a result of
the former's failure to comply with any of the aforementioned obligations.

Additional provisions:

Signed in    on this   day of                     Signed in  on this day of

19th August 1995                                  19th August 1995
Sico Jena GmbH Quartzchmelze                      ______________________________
Nadrag          Marach                            Mohd Aslami
- Managing Directors -                            President of FiberCore, Inc.
(Lessor)
_________________________                         ______________________________
(Lessee)


Additions to Lease:


The Parties to the Lease


<PAGE>



Anlage 1

                  Raum - Nr.:                   qm
--------------------------------------------------
100 T             1-28                       56.10
                  1-29                       18.20
                  2-23                      110.30
                  4-14                       39.00
                  4-15                       40.90
                  4-16                       35.30
                  4-17                       37.20
                  4-18                       37.20
                  4-19                       20.00
                  4-20                       57.80
                  4-21                      135.60
                  4-22                      394.30
                  4-23                        8.00
                  4-24                        6.80
                  4-25                        5.00
                  4-26.1                      6.90
                  4-26.2                     11.80
                  4-27                       52.80
                  4-28                       40.80
                  4-29                       79.80
                  4-30                      207.70
                  4-33                        5.90
                  4-34                        7.20
                  4-35                        6.60
                  4-36                        7.10
                  4-37                       35.00
                  4-38                       36.10
                  4-39                       27.50

Summe:   100T                             1,526.90
<TABLE>
<CAPTION>
<S>      <C>                               <C>               <C>
         Raum - Nr.:                              qm
                  1-36                      199.50
                  2-31                       55.80
                  2-28                       14.10
                  3-19                       37.30
                  3-20                       19.00
                  3-21                       23.00
                  3-21.1                     34.40
                  3-25                      177.70
                  3-35                       24.90
                  4-08                       48.40
                  4-09                       14.70            AuBenflache                  102.70
                  4-31                       66.60            AuBenflache/Ziehturm          80.00
                  4-32                       55.10            Summe:                       182.70
                                                              -----------------------------------
                  4-40                       52.90
                  4-41                       81.20
                  4-42                       55.80
         Summe:  Normal                     960.40

Gesamtaumme

vermietete Flache:                        2,670.00
</TABLE>


<PAGE>



Anlace 3

Nicht im Mietzins enthaltene  Betriebskosten.  welche monatlich an die FIBERCORE
Jena GmbH gesondert weiterverrechnet warden.

         Elektroenergie
         *Tag*Nacht-Tarif

         Fernwarme
         *LTA
         *Heizung

         Wasser
         *Kaltwasser
         *Warmwasser
         *Abwasser
         *Filtratwasser

         Gasa
         *Wasserstoff
         *Sauerstoff
         *Stickstoff

         Luft
         *Druckluft

         Chemiekalien
         *Natronlauge
         *Salzsaure

Fur die Edelgase ist FIBERCORE direkter Partner zum
zum  Lieferanten.  Alles was sonst moglich ist.  sollte  direkt beim  Hersteller
bezogne werdern.