Document:

OFFICE LEASE
                                                    ------------
                                           (Quail Springs Office Building)

         THIS  AGREEMENT  (the "Lease") is made  __________,  1999,  between TMK
INCOME  PROPERTIES,  L.P., a Delaware limited  partnership,  having an office at
Suite 600, 204 North Robinson,  Oklahoma City,  Oklahoma 73102 (the "Landlord"),
and  ETHOS  COMMUNICATIONS,  INC.,  having  a  notice  and  mailing  address  at
_______________  (the  "Tenant").   Unless  otherwise  separately  defined,  the
capitalized terms used herein are defined at Paragraph 4 below.

                                                W I T N E S S E T H:
                                                - - - - - - - - - -

1. Conditions Precedent.  Notwithstanding anything herein to the contrary, it is
expressly recognized and agreed --------------------- that this Lease and/or the
Tenant's right to occupy the Leased Premises are expressly  conditioned upon the
satisfaction
of the following conditions precedent:

1.1               Surrender by Pioneer. Tenant acknowledges that Pioneer Natural
                  Resources U.S.A.,  Inc.  ("Pioneer") has certain rights in and
                  to the Leased  Premises by virtue of that certain Office Lease
                  dated  July  11,  1996,   entered   into  by  the   respective
                  predecessors of Landlord and Pioneer, as amended (collectively
                  the "Pioneer Lease"), which rights are to be surrendered on or
                  before  the  Effective  Date.   Accordingly,   this  Lease  is
                  expressly  conditioned  upon Pioneer and Landlord having fully
                  executed  a  Surrender  and  Acceptance  Agreement  in a  form
                  satisfactory  to Landlord on or before the Effective  Date and
                  in the event such condition is not satisfied,  then this Lease
                  shall be null and void and the  parties  shall have no further
                  rights or liabilities to each other hereunder.

1.2               Vacation by Pioneer. Tenant acknowledges that its occupancy of
                  the Leased Premises as of the  Commencement  Date is expressly
                  conditioned upon Pioneer's  vacation of the Leased Premises at
                  least  _____  (____)  days  before  the   Commencement   Date.
                  Accordingly,  in the event  Pioneer has not vacated the Leased
                  Premises  by such  date,  then  Tenant's  occupancy  shall  be
                  delayed pursuant to the terms of Paragraph 2.1.2 hereinbelow.

1.3  Rights of  Refusal.  Tenant  acknowledges  that Sonat  Exploration  Company
("Sonat") and Louis Dreyfus Natural Gas ----------------- Corp ("Louis Dreyfus")
have certain  rights of refusal in and to the Leased  Premises,  which rights of
refusal  should be  exercised  or expire  prior to the  Effective  Date  hereof.
Accordingly,  this Lease is expressly  conditioned upon Sonat and Louis Dreyfus,
respectively,  either  failing to exercise or expressly  waiving their rights of
refusal in and to the Leased  Premises,  on or before the Effective  Date and in
the event such  conditions  are not satisfied  then this Lease shall be null and
void and the parties shall have no further  rights or  liabilities to each other
hereunder.

1.4  Leased  Premises.  Provided  that the  conditions  precedent  set  forth in
Paragraphs 1.1 and 1.3 hereinabove are  ----------------  satisfied on or before
the Effective  Date,  Landlord  hereby leases the Leased  Premises to Tenant and
Tenant hereby leases the same from  Landlord.  As reflected on Schedule "1", the
Leased  Premises  will be  comprised of  approximately  3,978 square feet of Net
Rentable Area on the third (3rd) floor of the Building;  provided,  however, the
square feet of Net Rentable Area within the Leased Premises will be increased or
decreased to reflect the actual square footage of Net Rentable Area reflected on
the Final Working Drawings and documented by an amendment to this Lease.

2. Term.  The Lease  Term is five (5) years  having a  Commencement  Date on the
earlier of: (a) thirty (30) days after the Effective Date of this Agreement (the
"Projected  Commencement Date"); or (b) Substantial  Completion of the Leasehold
Improvements;  subject to  postponement,  acceleration or extension as hereafter
provided.  If the Commencement Date occurs (aa) on the first day of a month, the
Expiration Date will be five (5) years from the last day of the preceding month;
or (bb) on a date  other than the first day of the month,  the  Expiration  Date
will be five (5) years from the last day of the month in which the  Commencement
Date occurs; unless extended as hereafter provided.

2.1 Late Occupancy. If for any reason construction of the Leasehold Improvements
has  not  reached  ---------------   Substantial  Completion  by  the  Projected
Commencement Date, this Lease will nevertheless continue in
                  effect.

<PAGE>

                                       17

                  2.1.1      Tenant's   Causation.   If  the  failure  to  reach
                             Substantial  Completion  arises from: (a) any delay
                             in the  installation of the Leasehold  Improvements
                             caused  by any  change in or  addition  to the work
                             ordered  by  Tenant;  (b)  Tenant's  nonpayment  of
                             Tenant's   Construction  Cost;  or  (c)  any  other
                             default,  delay or  omission  by  Tenant  or anyone
                             acting  under or for  Tenant;  the  payment of Rent
                             will commence on the Projected Commencement Date in
                             accordance  with  Paragraph  3.1 and the Lease Term
                             will not be modified.

                  2.1.2      Other   Causation.   If  the   failure   to   reach
                             Substantial    Completion    by    the    Projected
                             Commencement   Date  arises  through  no  fault  of
                             Tenant,  Rent will abate and not commence until the
                             date of  Substantial  Completion and the Lease Term
                             will  be  extended  by the  period  of  time  which
                             elapses between the Projected Commencement Date and
                             the date of Substantial Completion.

                  2.1.3      Outside  Date.  If  through  no  fault  of  Tenant,
                             Substantial  Completion  is not reached  within one
                             hundred   eighty  (180)  days  from  the  Projected
                             Commencement  Date, either party may terminate this
                             Lease and neither  party shall have any  obligation
                             to the other  party for any action  taken  prior to
                             the  termination.  The  abatement  of Rent  through
                             Substantial  Completion or  termination as provided
                             herein  will  constitute  full  settlement  of  all
                             claims which Tenant  might  otherwise  have against
                             Landlord by reason of any delay in occupancy of the
                             Leased Premises.

3.  Rent.  Tenant  shall pay Rent to be mailed to  Landlord  at P. O. Box 25517,
Oklahoma City,  Oklahoma  73125-0517 or ---- delivered to Landlord at Suite 600,
204 N. Robinson,  Oklahoma  City,  Oklahoma  73102.  All Base Rent is payable in
advance and  without  prior  notice or demand,  beginning  on the date  provided
herein and  continuing  thereafter  on the first day of each month  through  the
Expiration Date.

         3.1      Base Rent. During the Lease Term, Tenant shall pay to Landlord
                  as Base Rent an aggregate amount equal to the products of: (a)
                  $18.00 ; times (b) the total square feet of Net Rentable  Area
                  actually  in the  Leased  Premises;  times  (c) five (5) Lease
                  Years in the Lease  Term.  If there is an increase or decrease
                  in the square feet of Net  Rentable  Area in  accordance  with
                  Paragraph  1, the Base Rent will be adjusted  according to the
                  preceding formula.  Any such required  adjustment to Base Rent
                  reflecting  an  increase or decrease in the square feet of Net
                  Rentable  Area,  shall be  confirmed  in an  amendment to this
                  Lease,  signed by both parties and  attached  hereto as a part
                  hereof for all purposes, which amendment will also confirm the
                  effective Commencement Date for all purposes hereunder.

         3.2      Operating Cost Increase.  In the event the Estimated Operating
                  Cost for any  calendar  year during the Lease Term exceeds the
                  Base Operating  Cost,  Tenant agrees to pay to Landlord on the
                  first  day of  the  month  following  receipt  of a  statement
                  therefor  and monthly  thereafter  an amount which is equal to
                  one-twelfth (1/12) of Tenant's Share of the excess amount.

         3.3      Rent  Adjustment.  On or before March 15 of each calendar year
                  during  the  Lease  Term,   Landlord  will  provide  Tenant  a
                  statement of Landlord's  Actual Operating Cost incurred during
                  the preceding  calendar year. If the Estimated  Operating Cost
                  exceeds  or is less  than the  Actual  Operating  Cost for any
                  calendar  year  ending  during the Lease  Term,  the amount of
                  Tenant's  Share of such excess or deficiency  will be added to
                  or credited against the subsequent  installments of Additional
                  Rent  payable  during the  remaining  months of that  calendar
                  year. Any sums owed by reason of such adjustment will not bear
                  interest and will,  except with respect to final settlement on
                  the  Expiration  Date,  be  payable  only  as a  reduction  or
                  increase in the amount of Additional  Rent to accrue and under
                  no  circumstances  will Rent be reduced to an amount less than
                  the Base Rent.

         3.4      Prorations.  If the Commencement Date is a date other than the
                  first  day of a  month,  or if the  Expiration  Date is a date
                  other than the last day of a month,  the  installment  of Base
                  Rent for the month in which such date  occurs will be prorated
                  based  on a thirty  (30)  day  month.  If any  assessment  for
                  Additional  Rent is computed for a term  beginning  before the
                  Commencement Date or extending beyond the Expiration Date, the
                  assessment  will be prorated  based on a three  hundred  sixty
                  (360) day year.

<PAGE>

         3.5      Late Charges. In the event Tenant fails to make timely payment
                  of Rent or any other  amount due and owing  hereunder  and the
                  amount  remains unpaid for a period of ten (10) days from such
                  due date,  in addition to any and all other sums due and owing
                  herein, Landlord may collect from Tenant as Additional Rent an
                  administrative  service fee in an amount  equal to $100.00 per
                  day for the period of time Rent remains unpaid.

4. Construction and Definitions. Unless otherwise herein defined, the terms used
in this Lease have the meanings  indicated in this Paragraph 4 and shall include
the plural as well as the singular.  The word "including"  shall be construed to
be followed by the words "without limitation" or "but not limited to." The words
"herein", "hereof",  "hereunder",  "hereafter" and other words of similar import
shall  refer to this  Lease as a whole and not to any  particular  Paragraph  or
other subdivision.  All references to Schedules or other attachments shall refer
to Schedules,  exhibits,  diagrams and special provisions attached to this Lease
and all of which are incorporated by reference herein for all purposes.

         4.1      Actual Operating Cost.  Operating Cost in fact incurred by
                  Landlord in any given calendar year.
                  ---------------------

         4.2      Additional Rent. The sums described at  Paragraphs 3.2,  3.3
                  and 3.5 and any other amounts required to be
                  ---------------
                  paid by Tenant hereunder.

         4.3      Base Operating Cost.  The Actual Operating Cost for calendar
                  year 1999.
                  -------------------

         4.4      Base Rent.  The sum described at Paragraph 3.1.
                  ---------

         4.5      Building.  The structure owned by the Landlord known as "Quail
                  Springs Parkway Plaza - East Tower"  (sometimes  herein called
                  "East  Tower") and Quail  Springs  Parkway Plaza - West Tower"
                  (sometimes  herein  called "West  Tower") (as used herein East
                  Tower and West Tower are collectively  called the "Building"),
                  are located on the following described tract of land:

                  A tract of land lying in the Southeast  Quarter of Section 12,
                  Township  13  North,  Range  4 West  of the  Indian  Meridian,
                  Oklahoma  County,   Oklahoma,   and  being  more  particularly
                  described as follows:

                             Commencing   at  the   Southwest   corner  of  said
                             Southeast  Quarter;  THENCE  North  00o20'07"  West
                             along  the West  line of said  Southeast  Quarter a
                             distance  of  307.43  feet to a point  lying on the
                             North  right-of-way  line for West  Memorial  Road;
                             THENCE  continuing  North 00o20'07" West along said
                             West line a distance of 1222.99 feet;  THENCE North
                             89o30'46"  East a distance of 81.70 feet to a point
                             on the East  right-of-way  line for  Quail  Springs
                             Parkway,   said  point  also  being  the  POINT  OF
                             BEGINNING; THENCE continuing North 89o30'46" East a
                             distance of 622.89  feet;  THENCE  South  00o29'14"
                             East  a  distance  of  501.00  feet;  THENCE  South
                             89o30'46"  West a distance of 103.81  feet;  THENCE
                             South  44o30'46"  West a distance  of 102.53  feet;
                             THENCE  South  89o30'46"  West a distance of 403.08
                             feet to a point on the Easterly  right-of-way  line
                             for Quail Springs  Parkway;  THENCE Northerly along
                             said right-of-way line on the arc of a curve to the
                             left, said curve having a radius of 1662.16 feet (a
                             chord bearing North  02o24'30" West, a chord length
                             of 335.70 feet) an arc distance of 336.27 feet to a
                             point of  tangent;  THENCE  continuing  along  said
                             right-of-way  North  08o12'15"  West a distance  of
                             240.16 feet to the POINT OF BEGINNING. And contains
                             328,625 square feet or 7.5442 Acres, more or less.

4.6 Business  Hours.  The hours of operation  for the Building will be 7:30 a.m.
until 5:30 p.m. every Monday ---------------  through Friday and 8:00 a.m. until
12:30 p.m. on Saturdays,  excluding  those days  designated by the government of
the United States as the following  holidays,  which shall be deemed  outside of
the Business Hours: New Year's Day,  Memorial Day,  Independence Day, Labor Day,
Thanksgiving  Day (which for purposes of this Lease shall  include the day after
Thanksgiving Day), and Christmas Day.

<PAGE>

         4.7      Building  Regulations.  The rules and regulations  adopted and
                  published  from  time to  time  by  Landlord  to  promote  the
                  convenience,  peace,  safety and welfare of the tenants of the
                  Building and to govern the  Building use and the  distribution
                  of  services  which  are  applicable  to  all  tenants  of the
                  Building.  The  current  Building  Regulations  are set out at
                  Schedule  "4". Any  modification  to the Building  Regulations
                  shall bind Tenant upon  delivery of a copy  thereof to Tenant.
                  Landlord   shall  not  be   responsible   to  Tenant  for  the
                  nonperformance  of any portion of the Building  Regulations by
                  any other tenants, occupants, or invitees of the Building.

4.8  Commencement  Date. The date on which the Lease Term commences as specified
at  Paragraph  2,  which  may or  ------------------  may  not be the  Projected
Commencement Date.

         4.9      Common  Areas.  Parts of the Building  designated  by Landlord
                  from time to time as intended for non-exclusive  common use by
                  the  public  and other  tenants  of the  Building,  including,
                  stairways,   elevators,  service  corridors,  delivery  areas,
                  public restrooms, lobby entrances, and plaza areas.

4.10  Construction  Agreement.  Pursuant  to  Paragraph  5, the  contract  to be
executed and delivered by Landlord  -----------------------  and Tenant  calling
for the  construction  of the Leasehold  Improvements  by Landlord or Landlord's
designees, in substantially the form of Schedule "3".

         4.11     Construction  Cost.  All costs  incurred in  constructing  the
                  initial  Leasehold   Improvements,   including   contractors',
                  subcontractors',  architects',  engineers' and designers' fees
                  and expenses (including costs of Final Working Drawings),  and
                  Landlord's  construction  supervision fee, all as set forth in
                  the Construction Agreement.

4.12 Effective Date. The date inserted on the first page of this Lease following
execution  by the last party  --------------  signing the  counterparts  of this
Lease.

         4.13     Encumbrance(s).   All  mortgages,  deeds  of  trust,  security
                  agreements, collateral assignments, and other encumbrances and
                  all ground  leases,  master  leases and other  primary  leases
                  which might now or hereafter  affect any portion of Landlord's
                  interest  in this  Lease,  the  Building,  the Land and/or any
                  other  property  associated  therewith  and  all  advancements
                  thereunder   and  all  increases,   renewals,   modifications,
                  consolidations, replacements and extensions thereof.

4.14 Estimated  Operating Cost.  Landlord's good faith estimate of the Operating
Cost to be incurred in any -------------------------- given calendar year.

4.15  Expiration  Date.  The date when the Lease Term  expires as  specified  at
Paragraph 2 or such  earlier  date  ----------------  as  specifically  provided
herein.

4.16  Final  Working  Drawings.  The  plans,  specifications  and  drawings  for
construction of the Leasehold
                  ------------------------
                  Improvements attached hereto as Schedule "2".

         4.17     Governmental  Authorities.  All federal,  state,  county,  and
                  municipal     governmental     bodies    and    agencies    or
                  instrumentalities    thereof,    including    all    judicial,
                  quasi-judicial and administrative  bodies, having jurisdiction
                  over the Land and Building, Landlord's ownership and operation
                  thereof,  and Tenant's  business and use and  occupancy of the
                  Leased Premises and Building.

4.18 Guarantor.  Any Person  executing a full or partial  guaranty of payment or
performance of any one or more
                  ---------
                  of Tenant's obligations under this Lease.

         4.19     Hazardous Material. Any hazardous or toxic substance, material
                  or waste,  including,  but not limited to,  those  substances,
                  materials and wastes listed in the United States Department of
                  Transportation   Hazardous   Materials   Table   or   by   the
                  Environmental  Protection  Agency as hazardous  substances and
                  amendments thereto,  or such substances,  materials and wastes
                  that are or become regulated under any applicable Law.

4.20  Holder.  The  mortgagee,  beneficiary,  secured  party or lessor under any
Encumbrance and such party's
                  ------
                  successors and assigns.

          4.21  Improvement  Allowance.   The  credit  to  Tenant  for  Tenant's
     Construction Cost incurred in the construction  ----------------------  and
     installation  of the  Leasehold  Improvements,  in an amount as provided in
     Paragraph 5.3.

<PAGE>

         4.22     Land.  The tract of land upon which the Building is located
and all appurtenances thereto.
                  ----

         4.23     Landlord.  TMK Income Properties, L.P., a Delaware limited
partnership, and its successors and assigns.
                  --------

         4.24     Laws. All laws, statutes,  regulations,  rules, ordinances and
                  orders of any Governmental Authority, including common law and
                  rulings,   decisions  and  interpretations  of  all  judicial,
                  quasi-judicial, and administrative bodies.

         4.25     Lease. This lease agreement and all subsequent  amendments and
                  modifications, together with all schedules, exhibits, diagrams
                  and  special   provisions   attached  hereto  or  subsequently
                  attached   hereto  or  thereto,   and  to  any  amendments  or
                  modifications thereof.

         4.26     Lease Term.  The period of time  designated  at  Paragraph 2
 as the same might be modified  from time to
                  ----------
                  time by the written agreement of Landlord and Tenant.

         4.27     Leased  Premises.  The space in the Building  described at
 Schedule "1"  and the Leasehold  Improvements
                  ----------------
                  related thereto.

         4.28     Lease Year.  Twelve (12) complete months following the
Commencement  Date and each successive twelve (12)
                  ----------
                  month period thereafter during the Lease Term.

         4.29     Leasehold  Improvements.  All improvements  located within the
                  Leased  Premises on the  Commencement  Date as  constructed or
                  installed  pursuant  to the  Final  Working  Drawings  and the
                  Construction  Agreement,  and all subsequent  alterations  and
                  additions thereto, all of which are a part of the Building and
                  the  property of Landlord  from the time of  installation  and
                  shall be surrendered by Tenant to Landlord upon the Expiration
                  Date or earlier termination of this Lease.

         4.30     Legal  Requirements.  All  Laws  and all  recorded  covenants,
                  conditions and restrictions to the extent that they pertain to
                  the access to, and  maintenance,  operation  and occupancy of,
                  the Land,  the  Building,  the Leased  Premises  and  Tenant's
                  conduct of its business therein.

         4.31     Net  Rentable  Area.  The area  included  within the Leased
Premises  as  computed  by  Landlord  on the
                  -------------------
                  following basis:

                  4.31.1     Entire Floor. If any portion of the Leased Premises
                             consists of a full floor,  the area  constituting a
                             full floor will be one hundred five percent  (105%)
                             of the square footage  enclosed  within a perimeter
                             line constituting the midpoint of the outer wall or
                             the glass  line of the  Building,  after  deducting
                             space   occupied  by  elevator   shafts  and  other
                             vertical  penetrations  of the Leased  Premises for
                             the  use  of  other  tenants  of the  Building  but
                             without  deducting  space  occupied  by  columns or
                             other  intrusions  into the Leased  Premises  which
                             constitute structural components of the Building.

                  4.31.2     Partial  Floor.  If the Leased  Premises or any
portion  thereof  consists of less than a full
                             --------------
floor of the  Building,  the area thereof will be one hundred  fourteen  percent
(114%) of the square footage  enclosed within a perimeter line  constituting the
midpoint of the outer wall or the glass line of the Building and the midpoint of
the common walls  separating the Leased  Premises from the Common Areas or other
tenants of the Building,  after  deducting space occupied by elevator shafts and
other vertical  penetrations of the Leased Premises for the use of other tenants
of the  Building  but  without  deducting  space  occupied  by  columns or other
intrusions into the Leased Premises which  constitute  structural  components of
the Building.

         4.32     Operating  Cost.  All  costs  incurred  or to be  incurred  by
                  Landlord for any given  calendar year in  connection  with the
                  management,   operation,  safety,  security,  replacement  and
                  maintenance of the Building and the Park, the Land, the Common
                  Areas,  all other  improvements  on the Land.  The costs  with
                  respect  to the  Building  will be  adjusted  to  reflect  the
                  greater of actual or a minimum of  ninety-five  percent  (95%)
                  occupancy of the Building and computed on an accrual basis.

<PAGE>

                  4.32.1     Included  Costs.  By way of  illustration,
 but not  limitation,  Operating  Cost will include
                             ---------------
                             expenditures for:

                             (a)      Taxes;

                             (b)      utility and sewerage charges;

                             (c)      the  Building's  share of the  assessments
                                      and other expenses of Quail Springs Office
                                      Park  Owner's  Association  (the  "Owner's
                                      Association"), as may from time to time be
                                      designated     pursuant     to    recorded
                                      declarations and other documents;

                             (d)      the Building's share of the  construction,
                                      operation,   maintenance,   security   and
                                      repair of any  parking  areas and  parking
                                      structures, whether constructed, installed
                                      and   operated:   (a)   by   the   Owner's
                                      Association;  or (b) by  any  Person;  and
                                      whether  available in common to all owners
                                      of buildings  within the Park or allocated
                                      to all or one or more specified  buildings
                                      in varying proportions;

                             (e)      cleaning (including supplies and
 janitorial services);

                             (f)      pest control;

                             (g)      licenses, permits and inspection fees;

                             (h)      insurance premiums;

                             (i)      heating and cooling charges;

                             (j)      repairs;

                             (k)      management expenses,  including management
                                      fees and  other  costs  paid  directly  by
                                      Landlord  under  the  terms  of  any  real
                                      property    management     agreement    or
                                      administrative   services   agreement  and
                                      direct  costs  incurred by Landlord  other
                                      than as provided in any such agreement;

                             (l)      expenditures   for  personnel,   including
                                      payroll  and  related  expenses  of  those
                                      Persons   directly   involved   with   the
                                      operation,   maintenance,   security   and
                                      management   of  the   Building   and  the
                                      Building's share of such expenses relating
                                      to the Park;

                             (m)      equipment rental;

                             (n)      ground rental;

                             (o)      reasonable reserves for repair and
                                      replacement;

                             (p)      labor;

                             (q)      supplies;

                             (r)      access monitoring charges attributable to
                                      the Building;

(s)  expenditures,  whether by purchase or lease,  for capital  improvements and
capital  equipment  that under  generally  applied  real  estate  practices  are
expensed or regarded as deferred expenses and capital expenditures that are made
by reason of requirements of Law or for emergency or labor-saving  devices or in
lieu of a repair, in which case such capital  improvements  shall be included in
Operating Costs for the calendar year in which such costs are incurred and every
subsequent calendar year, amortized on a straight-line basis over an appropriate
period with interest  calculated  at an annual rate of ten and one-half  percent
(10-1/2%);

(t) charges of  independent  contractors  performing  work  included  within the
definition of Operating Costs;

<PAGE>

(u) exterior and interior landscaping not included in assessments of the Owner's
Association;

                             (v)      all  additional  costs of compliance  with
                                      Laws and other Legal Requirements directly
                                      applicable   to   the    improvement    or
                                      alteration,  maintenance  and operation of
                                      the   Building,   including  ADA  and  all
                                      environmental Laws; and

(w) legal,  accounting and other professional fees and disbursements incurred in
the operation and management of the Land and Building.

                  4.32.2     Excluded Costs.  The following will be excluded
 from Operating Cost:
                             --------------

(a) charges which are reimbursed to Landlord for any reason,  including  without
limitation reimbursements of payments made from reserves previously accrued;

                             (b)      depreciation;

                             (c)      debt service,  including interest and late
                                      charges,  except as specifically described
                                      above;

                             (d)      costs of  constructing  the  Building  and
                                      initial  Leasehold   Improvements  or  the
                                      repair and restoration  thereof  following
                                      casualty  loss  or   condemnation  to  the
                                      extent  reimbursed  by  insurance  or by a
                                      condemnation award;

                             (e)      leasing commissions, rental concessions
and buy-outs;

                             (f)      income, franchise and similar Taxes which
are personal to Landlord; and

                             (g)      legal,  accounting and other  professional
                                      fees incurred in preparation of leases for
                                      tenants   and   prospective   tenants   or
                                      otherwise   not    attributable   to   the
                                      operation  or  management  of the Building
                                      and Land or for preparation of leases.

         4.33     Park. The commercial  mixed-use  development  currently known
as Quail Springs Office Park,  within which
                  ----
                  the Building is located.

         4.34     Person. A natural person, or a corporation,  partnership,
limited liability company,  or any other legal
                  ------
                  entity, or a Governmental Authority, as the case may be.

         4.35     Rent.  The sums to be paid by Tenant to  Landlord as Base Rent
                  and  Additional  Rent  pursuant to  Paragraph 3 and such other
                  amounts as required to be paid by Tenant to Landlord  pursuant
                  to the terms hereof.

         4.36     Substantial Completion.  The completion of the construction of
                  the Leasehold  Improvements to the extent that the same can be
                  occupied by Tenant for the conduct of Tenant's  business.  The
                  completion of minor construction deficiencies or completion of
                  punch list items will not delay Substantial Completion.

         4.37     Taxes. All (a) real and personal property and ad valorem taxes
                  or  other  tax  levied  in lieu of real  property  taxes,  (b)
                  municipal taxes,  special assessments or similar charges,  and
                  (c) all other  taxes,  assessments  and  governmental  charges
                  (including  taxes on rents or  services),  levied or  assessed
                  against the  Building,  the Land,  or any other  improvements,
                  fixtures or personal property owned by Landlord and located on
                  or incorporated into the Building.  If any special assessments
                  are payable over a period of years, only that portion required
                  to be paid  during a calendar  year,  together  with  interest
                  thereon, shall be treated as a Tax allocable to such year.

         4.38     Tenant.  The party  executing  this Lease in such  capacity
and such  party's  permitted  successors  and
                  ------
                  assigns.

<PAGE>

         4.39     Tenant's  Default or  Default by Tenant.  The events set forth
                  herein  constituting  a breach or default by Tenant  hereunder
                  upon the failure of Tenant to cure the same within  applicable
                  cure or grace periods.

         4.40     Tenant's   Construction   Cost.  That  portion  of  the  final
                  Construction Cost of the Leasehold  Improvements to be paid by
                  Tenant pursuant to Paragraph 5.3, being an amount equal to the
                  Construction Cost minus the Improvement  Allowance as adjusted
                  for any additional  charges,  credits or adjustments  provided
                  herein or reflected in the Construction Agreement.

         4.41     Tenant's Share. A fraction  computed by Landlord having as the
                  numerator  the Net Rentable Area  contained  within the Leased
                  Premises  and as the  denominator  the Net  Rentable  Area for
                  office  space in the  Building.  Tenant's  Share is  agreed by
                  Landlord and Tenant to be 3,978/321,312,  or 1.24%, subject to
                  adjustment based upon the final  determination of Net Rentable
                  Area.

50  Leasehold  Improvements.  Landlord  and  Tenant  agree  that  the  Leasehold
Improvements  shall be  constructed  and  -----------------------  installed  in
accordance with the procedures and provisions set forth in this Paragraph 5.

         5.1      Final  Working  Drawings.  Landlord  has  prepared at Tenant's
                  expense Final Working Drawings for the Leasehold  Improvements
                  to be  installed  on  behalf  of Tenant  which  Final  Working
                  Drawings  have been  mutually  approved by Landlord and Tenant
                  and are attached hereto as Schedule "2".

         5.2      Construction  Agreement.   Within  five  (5)  days  after  the
                  Effective  Date Landlord will prepare and submit to Tenant the
                  Construction  Agreement  setting forth the Construction  Cost.
                  Within   five  (5)  days   after   Tenant's   receipt  of  the
                  Construction  Agreement and the Construction Cost, Tenant will
                  either:   (a)   approve   the   Construction   Agreement   and
                  Construction Cost in writing;  or (b) deliver a written notice
                  to Landlord requesting  specific changes.  Thereafter Landlord
                  will  have  five (5) days  within  which to submit to Tenant a
                  revised  Construction  Agreement and final  Construction Cost.
                  Landlord  and Tenant agree to negotiate in good faith to reach
                  a   mutually   satisfactory    Construction    Agreement   and
                  Construction  Cost. In the event  Landlord and Tenant are both
                  acting  in  good  faith,   but  cannot  agree  on  a  mutually
                  acceptable final Construction  Agreement and Construction Cost
                  within one hundred  fifty (150) days from the  Effective  Date
                  then Landlord will have the right during a ten (10) day period
                  thereafter  to  terminate  this  Lease by  written  notice  to
                  Tenant;  and upon such notice of  termination,  neither  Party
                  will  have any  further  rights  or  obligations  to the other
                  hereunder; provided, however, Tenant shall be obligated to pay
                  the  costs  incurred  for  preparation  of the  Final  Working
                  Drawings.  If no such notice of  termination  is given  within
                  such 10-day  period,  this Lease shall  continue in full force
                  and effect,  and  Landlord  will have the final  authority  to
                  complete the Construction Agreement and the Construction Cost,
                  which Tenant shall execute  within two (2) days of delivery of
                  the same to Tenant.

         5.3      Construction.  The  Leasehold  Improvements  reflected  in the
                  Final  Working  Drawings  will be  installed  by  Landlord  at
                  Tenant's  expense except that Landlord agrees to credit Tenant
                  with an improvement allowance against the Construction Cost in
                  an amount equal to the product of: (a) five and No/100 Dollars
                  ($5.00); times (b) the square feet of Net Rentable Area in the
                  Leased   Premises   (the   "Improvement    Allowance").    The
                  Construction Cost reduced by the Improvement Allowance will be
                  "Tenant's  Construction  Cost." Subsequent to the approval and
                  the  execution of the  Construction  Agreement,  Landlord will
                  construct   or  cause   to  be   constructed   the   Leasehold
                  Improvements.  Landlord  will have no  obligation  to commence
                  construction of the Leasehold Improvements until: (a) Landlord
                  and Tenant have  approved the  Construction  Cost and executed
                  the  Construction  Agreement;  and  (b)  Tenant  has  paid  to
                  Landlord  an  amount   equal  to  one-half   (2)  of  Tenant's
                  Construction  Cost in the amount set forth in the Construction
                  Agreement.  The balance of Tenant's  Construction Cost will be
                  paid by Tenant to Landlord  within ten (10) days after receipt
                  by  Tenant  of  written  notice  of the  date  of  Substantial
                  Completion of the Leasehold Improvements.  In the event Tenant
                  orders any change in or addition to the work called for by the
                  Final  Working   Drawings,   all  additional  costs  resulting
                  therefrom  will be paid by  Tenant  within  ten  (10)  days of
                  Tenant's receipt of an invoice from Landlord.

<PAGE>

         5.4      Fixtures  and  Personalty.   All  fixtures   (including  trade
                  fixtures   attached  to  the  Leased   Premises),   equipment,
                  improvements,  and  appurtenances  attached to, or built into,
                  the Leased Premises as reflected in the Final Working Drawings
                  or  subsequently  installed  pursuant to any other  provisions
                  hereof,  whether  by  Landlord  at  Landlord's  expense  or at
                  Tenant's expense,  or by the Tenant,  shall be and remain part
                  of the Leased  Premises  and shall not be removed by Tenant at
                  the expiration of the Lease Term,  unless otherwise  expressly
                  provided in this Lease.

                  5.4.1      Fixtures.   All   electric   ceiling  and  lighting
                             fixtures    and   outlets;    plumbing;    heating;
                             sprinkling;   telephone,   telegraph  and  built-in
                             communication systems; partitions, railings, doors,
                             panelling, molding, cabinetry,  shelving, flooring,
                             floor  and  wall  coverings;  and all  ventilating,
                             silencing,  air  conditioning,  cooling and heating
                             equipment;  where  installed  within or to interior
                             walls,  floors  and  ceilings,  shall be  deemed as
                             fixtures  and  to  comprise  a part  of the  Leased
                             Premises and shall not be removed by Tenant  except
                             as otherwise specifically provided herein.

                  5.4.2      Movable  Items.  Where not built into the Leased
  Premises  or  attached  to  interior  walls,
                             --------------
floors and ceilings,  and if furnished by or at Tenant's  expense without credit
by  the  Improvement   Allowance,   all  readily  removable  electric  fixtures,
non-attached carpets or rugs, electric fans, water coolers,  kitchen appliances,
furniture, furnishings, movable trade fixtures and equipment shall not be deemed
fixtures  and a part of the Leased  Premises,  and may be removed by Tenant upon
the  condition  that such removal  does not damage the Leased  Premises and upon
condition  also that Tenant  shall pay the cost of  repairing  any damage to the
Leased Premises arising from any such removal.

60 Tenant Deposit. Simultaneously with the execution of this Lease, Tenant shall
deposit with Landlord an amount equal to two (2) month's Base Rent. Such deposit
will be held by  Landlord  throughout  the  Lease  Term  without  liability  for
interest and as security for the  performance by Tenant of Tenant's  obligations
under this Lease.  The deposit will not be considered an advance payment of Rent
or a measure of  Landlord's  damages  for any  Default by Tenant.  Landlord  may
commingle  the deposit with  Landlord's  other funds and may, from time to time,
without prejudice to any other remedy, use the deposit to satisfy any arrearages
of  Rent or any  other  obligation  of  Tenant  hereunder.  Following  any  such
application of the deposit,  Tenant, on demand, shall restore the deposit to its
original  amount and  Tenant's  failure to do so within five (5) days of written
notice from Landlord shall be a Default  hereunder.  If Tenant is not in Default
at the  termination  of this Lease,  the balance of any such  deposit  remaining
after any such  application  will be returned to Tenant.  If Landlord  transfers
Landlord's interest in the Building during the Lease Term, Landlord shall assign
the deposit to the transferee and thereafter the transferor will have no further
liability with respect to any such deposit so assigned.

70 Payments. Tenant agrees to pay all Rent at the times and in the manner herein
provided.  Tenant's obligation to pay Rent is an independent covenant and no act
or circumstance  whatsoever (whether  constituting a default by Landlord or not)
will  release  Tenant from the  obligation  to pay Rent timely or give rise to a
counterclaim, offset or deduction unless specifically otherwise provided herein.
Time is of the  essence  in the  performance  of each  of  Tenant's  obligations
hereunder.  In the event any  payment of Rent is not made  within  five (5) days
after its due date, then Late Charges will be assessed as set forth in Paragraph
3.5 above,  and in addition to Late  Charges,  such amount  shall bear  interest
daily  until paid at the lesser of: (a) the rate of eighteen  percent  (18%) per
annum;  or (b) the highest lawful rate per annum allowed under  applicable  Law,
with such interest accruing from the due date.

<PAGE>

80 Use. Tenant will occupy the Leased Premises  continuously and in entirety and
will not use or permit any  portion of the  Leased  Premises  to be used for any
purpose  other  than  for  general  office  space  and  related   administrative
activities.  Tenant may not use the Leased  Premises  for any  purpose  which is
unlawful, disreputable,  adversely affects Landlord's leasing of the Building or
increases  the  risk of  casualty  or the  rate of  fire or  casualty  insurance
covering  the  Building  or its  contents.  In the event  that any act of Tenant
results in any  increase in the cost of  insurance  covering the Building or its
contents,  Tenant agrees to pay to Landlord the amount of such increased cost as
Additional Rent. Tenant will conduct Tenant's business and will control Tenant's
agents, employees,  licensees and invitees in such a manner as not to create any
nuisance, or interfere with, annoy or disturb other tenants or Landlord.  Tenant
will maintain the Leased Premises in a clean and healthful condition. Tenant, at
Tenant's  expense,  shall  comply and shall cause  Tenant's  agents,  employees,
licensees and invitees to comply fully with: (a) the Building  Regulations;  (b)
all Laws pertaining to Tenant's use of the Leased Premises;  (c) all other Legal
Requirements, including all applicable Laws pertaining to air and water quality,
hazardous  materials,  waste  disposal,  all emissions  and other  environmental
matters; and (d) all zoning and other land use matters and with any directive of
any  Governmental  Authority,  pursuant to Law, which shall impose any duty upon
Landlord or Tenant with respect to the use or occupancy of the Leased  Premises.
Tenant will not erect or install  any sign or other type of display  whatsoever,
either upon the exterior of the  Building or on the Land,  upon or in any window
of the  Building,  or any Common  Area,  without  the prior  written  consent of
Landlord,  which may be granted or withheld in Landlord's sole  discretion.  Any
signs or other type of display which Tenant installs  without  Landlord's  prior
written consent may be removed by Landlord and Tenant shall  reimburse  Landlord
for such cost promptly upon receipt of an invoice from Landlord.

90 Americans With Disabilities Act Requirements. Landlord is responsible for and
will maintain the Common Areas of the Building in  substantial  compliance  with
the  public  accommodations  provisions  of  Title  III  of the  Americans  With
Disabilities  Act of 1990, as amended (the "ADA"),  and Landlord  shall bear the
cost of any  improvements,  repairs,  renovations or modifications to the Common
Areas  that  may  from  time to time be  required  to bring  the  Building  into
compliance  or maintain  the  Building's  compliance  with Title III of the ADA.
Tenant shall  indemnify and hold Landlord  harmless from and against any losses,
costs,  damages or claims of whatever  nature,  arising out of or in  connection
with the compliance  requirements set forth in the ADA, as amended,  relating to
the use and occupancy of the Leased Premises and/or alteration and/or renovation
of the  Leasehold  Improvements,  including,  but not  limited  to, any  changes
necessitated because of the specific needs of Tenant's employees.

100 Landlord's Services and Other Obligations.  Landlord and Tenant hereby agree
as follows:
         -----------------------------------------

         10.1     Standard  Services.  So long as Tenant is not in  Default  and
                  subject  to  the   limitations   prescribed  by  the  Building
                  Regulations,  Landlord  agrees to furnish to Tenant during the
                  Business Hours the following  services:  (a) access to running
                  water  at the  points  of  supply  generally  provided  in the
                  Building  and  in  reasonable   quantities   consistent   with
                  customary  office  usage;  (b)  heated  and  refrigerated  air
                  conditioning at such times,  temperatures  and in such amounts
                  as  Landlord  regularly  provides  to tenants of the  Building
                  (specifically excluding,  however,  service, if necessary, for
                  the operation of Tenant's  supplemental  heating,  ventilation
                  and air conditioning system for Tenant's computer equipment or
                  similar high electricity consumption equipment, if any, all of
                  which is  considered  excess  service  and will be provided at
                  additional  cost to Tenant in  accordance  with the  following
                  subparagraph);  (c)  elevator  service  in common  with  other
                  tenants of the Building;  (d) access to  electrical  power for
                  normal  occupancy and general  office use (i) at a capacity of
                  up to two and  one-half  (2.5) watts per month per square foot
                  of Net  Rentable  Area  on 120  volt  for  power  distribution
                  through  outlets and for non-277 volt lighting  fixtures;  and
                  (ii) for 277-volt lighting at capacities  Landlord  reasonably
                  determines  and  Tenant  agrees to be  appropriate  for normal
                  occupancy and general office use; (e)  janitorial  services as
                  Landlord  regularly provides to other tenants of the Building;
                  (f) ordinary maintenance services as Landlord determines to be
                  reasonably  required to maintain the  exterior and  mechanical
                  systems of the  Building  and the Common  Areas;  (g) electric
                  lighting  for the Common Areas in the manner and to the extent
                  deemed by Landlord  to be  reasonably  required;  and (h) main
                  telephone  service to the  Building,  such  service to be made
                  available in a  telecommunications  equipment  area located on
                  same floor of the Building as the Leased Premises.

         10.2     Excess  Services.  To the  extent  Tenant  requests,  uses  or
                  requires  services:  (a) in excess of the  services  regularly
                  provided by Landlord pursuant hereto, or (b) requests, uses or
                  requires  services at times other than when such  services are
                  regularly  provided by Landlord  pursuant hereto;  then Tenant
                  agrees to pay to Landlord as  Additional  Rent such charges as
                  Landlord might from time to time prescribe for such additional
                  services.

<PAGE>

10.2.1 Excess Electricity  Requirements.  Tenant shall pay monthly in arrears as
Additional Rent for --------------------------------- any electrical consumption
costs in excess of the levels set forth in Paragraph 10.1 above.  Consumption of
electricity supplied to the Leased Premises under subparagraph  10.1(d)(i) above
shall be separately  metered  through a meter  installed by Landlord at Tenant's
expense and Tenant shall pay Landlord's actual costs incurred in connection with
the furnishing of such excess electrical consumption. Consumption of electricity
supplied to the Leased Premises under  subparagraph  10.1(d)(ii)  above shall be
monitored by the  Building's  lighting  control  system.  All 277-volt  lighting
service  beyond  the  Business  Hours of the  Building  relating  to the  Leased
Premises  will be monitored by the  lighting  control  system and will be billed
monthly to Tenant as Additional  Rent,  in an amount equal to Landlord's  actual
costs  incurred  in  connection  with the  furnishing  of such  excess  lighting
service,  payable in arrears.  Unless  previously  included,  installed and paid
pursuant to the Final Working Drawings, Tenant shall pay the cost of installing,
servicing  and  maintaining  any special or  additional  lines,  risers or other
equipment that may be required for Tenant's computer, electro-data processing or
other  equipment  requiring high  electrical  consumption,  all of which will be
installed under Landlord's supervision.

10.2.2 Excess HVAC Services. Heating,  ventilation and air conditioning services
("HVAC  Services")  --------------------  provided  to the  Leased  Premises  by
Landlord to Tenant beyond the Business  Hours of the Building and not separately
metered will be monitored by Landlord's HVAC control system and will be provided
to Tenant at rates and charges  established,  from time to time, by Landlord for
such excess HVAC Services. On the Commencement Date, the initial rate and charge
for  additional  HVAC Service is Thirty  Dollars  ($30.00) per hour for the time
period beyond the Business Hours of the Building in which such  additional  HVAC
Service is provided.  All invoices for Additional  Rent  attributable  to excess
HVAC Services will be due and payable within five (5) days after receipt thereof
by Tenant.

         10.3     Landlord's  Services  and  Repairs.  Landlord  shall  make all
                  inspections  and  repairs  to  the   mechanical,   electrical,
                  plumbing  and HVAC  systems  within the  Building or providing
                  service to the Leased  Premises as  customarily  required  for
                  such equipment to be functional  for their intended  purposes.
                  Landlord will promptly  endeavor to repair any  malfunction of
                  such   equipment   when  required   following  any  notice  of
                  malfunction  from  Tenant,  but the  failure  to any extent to
                  furnish  or any  stoppage  or  interruption  of the  foregoing
                  services  will not render  Landlord  liable in any respect for
                  damages to Tenant or any other  Person or be  construed  as an
                  eviction of Tenant or entitle  Tenant to any abatement of Rent
                  or relieve Tenant from  performing  any  obligation  contained
                  herein.  Tenant will promptly notify Landlord of any damage or
                  malfunction of such systems of which Tenant has knowledge. Any
                  such repairs  made  necessary  by the act,  neglect,  fault or
                  omission of Tenant or Tenant's agents, employees, invitees, or
                  visitors  shall be made by Landlord at Tenant's  expense;  and
                  Tenant  promptly  shall  remit  such  cost  to  Landlord,   as
                  Additional Rent, upon written demand therefor.

         10.4     Landlord's   Reservation.   Notwithstanding   the   foregoing,
                  Landlord  reserves the right,  without any liability to Tenant
                  and without  being in breach of any  covenant or  agreement of
                  this Lease, to temporarily interrupt or discontinue all or any
                  portion of Landlord's  services  hereunder at such times,  and
                  for so  long  as may be  necessary  in  Landlord's  reasonable
                  judgment by reason of accident,  unavailability  of employees,
                  strikes, riots, acts of God or other events beyond the control
                  of  Landlord.  Reasonable  advance  notice  shall  be given to
                  Tenant for any anticipated interruption.

110 Quiet  Enjoyment.  If Tenant  pays Rent herein  reserved  and  performs  the
obligations of Tenant hereunder, Tenant
         ----------------
will peacefully hold and enjoy the Leased Premises throughout the Lease Term.

120 Insurance. Tenant and Landlord shall each maintain during the Lease Term, at
their respective expense, the insurance coverages provided in this Paragraph 12.

<PAGE>

         12.1     Tenant's Insurance.  Tenant will maintain the following policy
                  or policies of insurance  insuring  Tenant and naming Landlord
                  as an  additional  insured:  (a)  fire and  extended  coverage
                  insurance   covering  the  Leased   Premises,   the  Leasehold
                  Improvements  and  Tenant's  property  located  in the  Leased
                  Premises  for  the  full  replacement  cost  thereof;  and (b)
                  commercial general liability insurance,  including contractual
                  liability  insurance,  for  injury  to or death of any  person
                  occasioned  by  or  arising  out  of  or  in  connection  with
                  occupancy of the Leased Premises, the limits of such policy or
                  policies  to be in an amount  of not less  than  $1,000,000.00
                  with  respect to injuries to or death of any one person and in
                  an amount of not less than  $3,000,000.00  with respect to any
                  one  occurrence.  12.1.1  Evidence  of  Coverage.  Tenant will
                  furnish to Landlord on or before the Commencement Date a

                             certificate of insurance  satisfactory  to Landlord
                             confirming  the  maintenance  of such insurance and
                             the payment of all premiums.  Renewal  certificates
                             or copies of renewal  policies will be delivered to
                             Landlord  at least  thirty  (30) days  prior to the
                             expiration  of any  policy.  Tenant  will  obtain a
                             written  obligation  on the part of each  insurance
                             company to notify  Landlord  at least ten (10) days
                             prior to cancellation of such insurance.

                  12.1.2     Carriers.   All  insurance   required   under  this
                             Paragraph  shall be issued by  insurance  companies
                             licensed  to do  business  in the State of Oklahoma
                             and acceptable to Landlord.

         12.2     Landlord's  Insurance.  Landlord  will  maintain the following
                  policy  or  policies  of  insurance:  (a)  fire  and  extended
                  coverage  insurance covering the Building and the Common Areas
                  for the  full  insurable  value  thereof;  and (b)  commercial
                  general liability insurance insuring injury to or death of any
                  person  occasioned by or arising out of or in connection  with
                  the ownership, maintenance,  management, leasing and operation
                  of the  Building,  the limits of such policy or policies to be
                  in an amount of not less than  $1,000,000.00  with  respect to
                  injuries to or death of any one person and in an amount of not
                  less than $3,000,000.00 with respect to any one occurrence.

         12.3     Waiver of Certain Claims.  Each of the parties hereby releases
                  the other  from all  liability  for  damage  due to any act or
                  neglect  of  the  other  (except  as   hereinafter   provided)
                  occasioned to property owned by said parties which is or might
                  be incident to or the result of any  casualty for which either
                  of the parties is now  carrying,  is required by this Lease to
                  carry or may hereafter carry insurance; provided, however, the
                  releases  herein  contained  shall  not  apply  to any loss or
                  damage occasioned by the deliberate,  harmful act of either of
                  the  parties  hereto  or  their  agents,  employees,  or other
                  Persons  acting on their behalf.  Landlord and Tenant  further
                  agree that any  insurance  they obtain  pursuant  hereto shall
                  contain  an  appropriate   provision   whereby  the  insurance
                  company,  or  companies,  consent  to the  mutual  release  of
                  liability  contained in this  Paragraph and waive all right of
                  recovery by way of subrogation  against  Landlord or Tenant in
                  connection  with  any  loss  or  damage  covered  by any  such
                  policies.  Upon  request by either  party,  Tenant or Landlord
                  shall  provide  the other with proof of  insurance  containing
                  evidence of the insurer's  acknowledgment of the provisions of
                  this Paragraph 12.3.

130  Acceptance.  By taking  possession of the Leased  Premises,  Tenant will be
deemed  conclusively  to  have  accepted  the  Leased  Premises  (including  the
Leasehold  Improvements)  as  being in  substantial  compliance  with the  Final
Working Drawings and as suitable for the purposes for which the same are leased,
to have accepted the Building and to have waived any defects therein,  excepting
latent  defects;  subject,  however,  to the  completion  by  Landlord  within a
reasonable   time  after  occupancy  by  Tenant  of  certain  minor  details  or
deficiencies  to the  Leasehold  Improvements  reflected on a written  punchlist
submitted  by  Tenant  to  Landlord  within  ten  (10)  days  after  the date of
Substantial Completion.

140      Maintenance and Alterations.  Landlord and Tenant agree as follows:
         ---------------------------

<PAGE>

         14.1     Landlord's Responsibilities.  Subject to the provisions herein
                  regarding  damage  by  fire  or  other  casualty  and  to  the
                  provisions of Paragraph 14.2,  Landlord agrees to maintain the
                  Building and Common Areas in good order and repair and to make
                  all necessary  structural  repairs to the Building,  including
                  the Leased Premises,  as and when required.  Landlord reserves
                  the right to connect to,  maintain  and repair  pipes,  ducts,
                  conduits,  cables,  plumbing,  vents  and  wiring  in,  to and
                  through  the Leased  Premises  as and to the  extent  Landlord
                  deems reasonably necessary,  convenient or appropriate for the
                  proper  operation and  maintenance of the Building  (including
                  the servicing of other tenants therein). Landlord shall not be
                  liable to Tenant  for any damage or  inconvenience  and Tenant
                  shall not be entitled to any abatement or reduction of Rent by
                  reason  of any  repairs,  alterations  or  additions  made  by
                  Landlord.

         14.2     Tenant's  Maintenance  Obligations.  Tenant will,  at Tenant's
                  expense,  maintain the non-structural portions of the interior
                  of the Leased  Premises in sound  condition  and good  repair.
                  Additionally,  upon prior written approval of Landlord, Tenant
                  will repair or replace any damage done to the  Building or the
                  Leased  Premises  by Tenant  or  Tenant's  agents,  employees,
                  licensees  or  invitees.  Tenant  will not commit or allow any
                  waste or damage to be  committed  on any portion of the Leased
                  Premises.  If  Tenant  fails to make  such  repairs  promptly,
                  Landlord,  at  Landlord's  option,  may make such  repairs and
                  Tenant shall pay Landlord as Additional Rent,  within five (5)
                  days  following  receipt  of an invoice  therefor,  Landlord's
                  actual costs incurred in making the repairs plus a supervision
                  fee  equal  to  ten  percent  (10%)  of  such  cost  to  cover
                  Landlord's overhead.

         14.3     Alterations.  Tenant will make no  alterations or additions to
                  the  Leased  Premises  without  the prior  written  consent of
                  Landlord.  Any  approved  alterations  or  additions  shall be
                  undertaken in compliance  with the provisions of Schedule "5".
                  Tenant  shall  make no  modifications  or  alterations  to the
                  Building   structure  and  systems  without  Landlord's  prior
                  written  approval,  which  Landlord  may grant or  withhold in
                  Landlord's sole discretion.

         14.4     Work  Performance.  All repairs and permitted  alterations  or
                  additions to the Leased Premises will be performed by Landlord
                  or Persons designated by Landlord,  or by Tenant or by Persons
                  designated  by Tenant and  approved by  Landlord,  at Tenant's
                  expense. If the projected costs for such repairs and permitted
                  alterations or additions to the Leased  Premises are estimated
                  to exceed $5,000  Landlord shall obtain bids from at least two
                  parties and shall  accept the lowest bid;  provided,  however,
                  Landlord  shall not be  required  to accept  the lowest bid if
                  Landlord,   in  Landlord's   professional   judgment,   has  a
                  reasonable   basis  to  question  the  accuracy  and  industry
                  standard of the bid pricing and Landlord advises Tenant of the
                  reasoned basis on which Landlord questions the bid.

150 Assignment; Subletting. Tenant will not assign or encumber this Lease or any
interest  herein or sublet the Leased Premises in whole or in part or suffer any
other person to occupy the Leased  Premises or any portion  thereof  without the
prior written consent of Landlord. Any such assignment,  encumbrance, subletting
or occupancy  without such consent will be void. If Tenant  desires to assign or
encumber this Lease or sublet the Leased  Premises or any part  thereof,  Tenant
will give  Landlord  written  notice of such desire  specifying  the name of the
proposed assignee,  mortgagee, or sublessee, the proposed effective date and all
other terms of the proposed  assignment,  encumbrance or sublease at least sixty
(60) days prior to the date such assignment, encumbrance or sublease is proposed
to be effective.  Landlord will have the option for a period of thirty (30) days
after  receipt of such notice to: (a)  terminate  this Lease as of the  proposed
effective  date  specified  by Tenant  as to all or the  portion  of the  Leased
Premises  affected;  or (b) permit  Tenant to assign,  encumber  or sublet  such
portion  of the  Leased  Premises;  or (c)  refuse to  consent  to the  proposed
assignment,  encumbrance  or subletting  and continue this Lease in effect as to
the entire  Leased  Premises.  The failure by  Landlord  to exercise  any of the
foregoing  options within the time provided will be deemed an exercise of option
(c) above.  Notwithstanding  any consent  granted by  Landlord,  Tenant and each
assignee, mortgagee, and sublessee will at all times remain fully liable for the
payment of Rent and for the performance of Tenant's  obligations  hereunder.  No
consent  granted by Landlord will  constitute a waiver of the provisions of this
Lease except as to the specific  instance covered thereby.  Tenant shall pay for
the costs of  Landlord's  expenses in  reviewing  the  proposal and drafting the
necessary  documents,  if any,  including  reasonable  attorney fees incurred by
Landlord.

<PAGE>

160  Condemnation.  If the Leased Premises or the Building is taken or condemned
in whole or part for any public use or purpose by right of eminent  domain or is
transferred  by  agreement in  connection  with or in lieu of or under threat of
condemnation,  the Lease Term and the leasehold  estate  created hereby will, at
the option of Landlord, terminate as of the date title vests in the condemnor or
transferee.  Landlord  will  receive  the entire  award from such taking (or the
entire  compensation paid on account of any transfer by agreement).  Tenant will
have no claim to any such  award and Tenant  assigns  any right it might have to
recover any money by the taking to Landlord.  Tenant, however, shall be entitled
to claim, prove and receive in any condemnation proceeding such awards as may be
allowed  under  applicable  Laws for fixtures and other  equipment  installed by
Tenant,  but only if such award  shall be made by the court in  addition to (and
shall in no manner  whatsoever  reduce)  the award made by the court to Landlord
for the Land and Building (including the Leasehold Improvements) or part thereof
so taken.

170 Casualty.  The following  provisions shall apply to damage or destruction to
the Building or the Leased Premises.
         --------

         17.1     Damage to Leased  Premises  Only.  If the Leased  Premises are
                  damaged by fire or other  casualty,  Tenant  shall give prompt
                  written notice  thereof to Landlord.  If such damage cannot be
                  repaired within one hundred eighty (180) days from the date of
                  such  casualty (as estimated by Landlord as soon as reasonably
                  practicable after the occurrence of such damage),  this Lease,
                  at the option of either,  exercised by giving  written  notice
                  thereof  to  the  other  within  sixty  (60)  days  after  the
                  occurrence of such damage,  will terminate as of the date such
                  notice is given. On such termination  Tenant will pay Rent and
                  all other  obligations  of Tenant  apportioned  to the date on
                  which such damage occurred and will immediately  surrender the
                  Leased  Premises  to  Landlord.  If the damage can be repaired
                  within one hundred  eighty (180) days, or if the damage cannot
                  be repaired  within one hundred  eighty (180) days but neither
                  Landlord nor Tenant  exercises  the option to  terminate  this
                  Lease,  Landlord will make the necessary repairs to the Leased
                  Premises and Leasehold  Improvements,  at Tenant's expense (to
                  the extent not covered by the proceeds of insurance carried by
                  either  party  pursuant to the terms  hereof),  and this Lease
                  will continue in effect, but Rent will be equitably reduced or
                  abated (as  determined in the good faith judgment of Landlord)
                  until  such  repairs  are  made.  Rent  will not be  abated or
                  reduced so long as Tenant's continued  occupancy of the Leased
                  Premises is not materially interrupted.

         17.2     Damage  to  Building.  If the  Building,  but not  the  Leased
                  Premises,  shall be so damaged by  casualty  that  substantial
                  alteration  or   reconstruction  of  the  Building  shall,  in
                  Landlord's  sole judgment,  be required or in the event of any
                  material  uninsured  loss to the  Building,  Landlord  may, at
                  Landlord's option, terminate this Lease by notifying Tenant in
                  writing of such  termination  within one hundred  eighty (180)
                  days after the date of casualty.  On such  termination  Tenant
                  will pay Rent and all other obligations of Tenant  apportioned
                  to  the  date  of  termination  and  Tenant  will  immediately
                  surrender  the Leased  Premises to Landlord.  If Landlord does
                  not  exercise  the option to  terminate  this Lease within one
                  hundred eighty (180) days  following  such casualty,  Landlord
                  will repair and restore the  Building  and the Common Areas at
                  Landlord's expense.  Rent will not be abated or reduced during
                  such  restoration  or  repair  so long as  Tenant's  continued
                  occupancy   of  the   Leased   Premises   is  not   materially
                  interrupted.

         17.3     Damage  to  Building  and  Leased  Premises.  If damage to the
                  Building  also includes  damage to the Leased  Premises and if
                  Landlord has not elected to terminate  this Lease  pursuant to
                  Paragraph  17.1,  Landlord  shall  commence  and proceed  with
                  reasonable  diligence to restore the  Building,  including the
                  Leased Premises,  to substantially the same condition in which
                  it  was   immediately   prior  to  the  casualty.   Landlord's
                  obligation to restore the Building  shall not exceed the scope
                  of  work  required  to  be  done  by  Landlord  in  originally
                  constructing  the Building,  nor shall Landlord be required to
                  spend for such  restoration  an amount in excess of  insurance
                  proceeds  actually  received  by  Landlord  as a result of the
                  casualty.  All  cost  and  expense  of  restoring  the  Leased
                  Premises  and the  Leasehold  Improvements  (to the extent not
                  covered by the proceeds of  insurance  carried by either party
                  pursuant to the terms hereof) shall be paid by Tenant.

         17.4     No Liability.  Landlord  shall not be liable to Tenant for any
                  inconvenience or annoyance to Tenant or injury to the business
                  of Tenant  resulting in any way from such damage or Landlord's
                  restoration  work  other  than  abatement  of Rent as and when
                  applicable   in   accordance    with   this    Paragraph   17.
                  Notwithstanding anything herein to the contrary, if the Leased
                  Premises  or any other  portion of the  Building is damaged by
                  any casualty  resulting from the fault or negligence of Tenant
                  or any of Tenant's agents,  employees,  or invitees,  the Rent
                  hereunder  shall  not  abate  and  Tenant  shall be  liable to
                  Landlord  for  the  cost  of  repair  and  restoration  of the
                  Building  and  Leased  Premises  to the  extent  such cost and
                  expenses are not covered by insurance proceeds.

<PAGE>

180 Entry.  Landlord and Landlord's agents,  employees and contractors will have
the right to enter the Leased  Premises  at all  reasonable  hours  (or,  in any
emergency,  at any hour), to inspect, clean, repair or alter the Leased Premises
as Landlord may deem necessary or to comply with Legal Requirements. Tenant will
not be entitled to any  abatement  or  reduction  of Rent by reason  thereby nor
shall any such  entry for such  purposes  constitute  an actual or  constructive
eviction of Tenant. Landlord may also enter the Leased Premises at any time upon
reasonable notice to Tenant to conduct economic  appraisal of the Building or to
show the Leased Premises to prospective purchasers, mortgagees, and tenants.

190  Security  Interest.  For  valuable  consideration  and as security  for the
payment of Rent and all other  obligations  of Tenant  under this Lease,  Tenant
hereby  grants  Landlord  a  security  interest  in all of  Tenant's  equipment,
furnishings,  inventory,  trade,  fixtures,  accounts  receivable and intangible
property and all proceeds and products from such property  located in or arising
out of Tenant's use of the Leased  Premises (all such property is referred to as
"Collateral").  Upon the occurrence of a Default in any provision of this Lease,
Landlord  shall be entitled  to all  remedies  of a secured  creditor  under the
Uniform  Commercial  Code of the State of Oklahoma.  Tenant agrees that adequate
notice of any public or private sale of Collateral under the Uniform  Commercial
Code shall be five (5) days prior  notice.  Tenant  agrees to sign any financing
statement,  amendment, or continuation statement, Landlord may present to Tenant
covering  the  Collateral  within ten (10) days of  presentment.  Tenant  hereby
appoints Landlord as Tenant's attorney-in-fact to sign and file any and all such
financing  statements,  amendments or continuation  statements at the expense of
Tenant in the event Tenant fails to do so.

200 Surrender of Leased Premises.  Upon the Expiration Date or other termination
of this Lease,  Tenant shall quit and  surrender the Leased  Premises,  together
with all items  comprising the Leasehold  Improvements as set forth in Paragraph
5.4 herein,  and such Leased Premises shall be broom clean and in good condition
and repair,  reasonable  wear and tear  excepted.  Tenant shall  ascertain  from
Landlord  at  least  thirty  (30)  days  prior to the  Expiration  Date or other
termination of this Lease whether Landlord requires Tenant to restore the Leased
Premises or any  particular  part thereof to the condition  which existed at the
Commencement  Date. Upon  notification  from Landlord,  Tenant, at Tenant's sole
cost and expense,  shall  restore the same before the  Expiration  Date or other
termination  date and Tenant shall remove from the Leased  Premises all property
Tenant is entitled to remove under Paragraph 5.5 together with any  alterations,
additions, and improvements which Landlord has given Tenant written instructions
to remove.  Tenant, at Tenant's expense,  shall immediately repair any damage to
the Leased Premises resulting from the removal of Tenant's  unattached,  movable
property or property  Landlord has given Tenant written  instructions to remove,
unless such damage is caused by Landlord's  negligence.  If the Leased  Premises
are not surrendered as provided herein,  Tenant shall indemnify Landlord against
any loss or liability  resulting  from the delay of Tenant in  surrendering  the
Leased Premises including, without limitation, any claims made by any succeeding
tenant  whose  occupancy  of the  Leased  Premises  has been  delayed.  Tenant's
obligation  under the preceding  sentence shall survive the  Expiration  Date or
other termination of the Lease.

         20.1     Holding  Over.  If  Tenant  continues  to  occupy  the  Leased
                  Premises after the Expiration Date or other termination of the
                  Lease,  such holding  over will,  unless  otherwise  agreed by
                  Landlord in writing,  constitute a month to month  tenancy and
                  Tenant  shall pay to  Landlord  an  amount  equal to twice the
                  amount of Rent  payable  during  the last  month  prior to the
                  scheduled  Expiration  Date or other  termination of the Lease
                  and  be  subject  to all of the  other  provisions  set  forth
                  herein.

<PAGE>

         20.2     Abandoned  Property.  Landlord may, at Landlord's option, take
                  possession of all personal property not removed by Tenant from
                  the Leased Premises if no employee of Tenant enters the Leased
                  Premises  for a period  of  twenty  (20)  days or if  Landlord
                  receives  notice  or  has  a  reasonable   belief  Tenant  has
                  abandoned  or  failed  to  continue  to  occupy,   the  Leased
                  Premises.  Additionally,  any personal property not removed by
                  Tenant  within five (5) days of the  Expiration  Date,  or any
                  other termination of the Lease, will be conclusively  presumed
                  to have been  abandoned by Tenant.  On the  occurrence  of any
                  such event Landlord may remove and store such property, at the
                  expense of Tenant,  without  being liable to Tenant  therefor.
                  Landlord will thereafter comply with all notice  requirements,
                  as applicable, and other procedures required by the Law of the
                  State of Oklahoma with respect to the disposition of abandoned
                  or  unclaimed  property and notify  Tenant in writing,  at the
                  notice  address  herein set forth or as otherwise  required by
                  Law,  of such  event  and if  Tenant  fails  to  recover  such
                  property  from  Landlord  within  thirty  (30) days after such
                  notice,   Landlord  may  dispose  of  such   property  in  any
                  commercially  reasonable  manner  permitted  by such  Laws and
                  apply any net proceeds,  after deducting any actual and direct
                  costs and fees incurred in securing,  storing and selling such
                  property,  against any Rent or other amounts due hereunder, or
                  if no amounts are due Landlord hereunder, then to Tenant.

210  Default.  The  following  events shall be deemed to be events of default by
Tenant under this Lease ("Tenant Defaults" or "Default") if not cured within the
applicable cure period.

21.1 Monetary Default. Tenant's failure to pay any Rent or other sums payable by
Tenant hereunder within ----------------- five (5) days from the due date.

21.2 Non-Monetary Defaults. Tenant's failure to cure any of the following events
within thirty (30) days ----------------------
                  after written notice thereof to Tenant:

                  (a)        material  failure  to comply  with any term of this
                             Lease or the Building Regulations to be observed by
                             Tenant other than non-payment of any Rent when due;

                  (b)        failure by Tenant to  continue to occupy all of the
                             Leased Premises and to conduct and operate Tenant's
                             business  within  the  Leased  Premises  during the
                             Business Hours of the Building for a period of more
                             than three (3) consecutive days;

                  (c)        Tenant's abandonment of the Leased Premises;

(d) discovery of any material misrepresentation or omission made with respect to
Tenant's  disclosure of Tenant's  financial  condition as submitted by Tenant to
Landlord; or

(e) the making by Tenant of a transfer in fraud of  creditors  or an  assignment
for the benefit of
                             creditors.

21.3 Other Defaults. The following events shall also be deemed events of default
by Tenant if the same are
                  ---------------
                  not dismissed within sixty (60) days of the filing thereof:

(a) the  filing  by or  against  Tenant  of any  proceeding  under  the  federal
bankruptcy act or any
                             similar Law;

(b) the  adjudication  of Tenant as bankrupt or insolvent in  proceedings  filed
under the federal bankruptcy act or any similar Law; or

(c) the appointment of a receiver for Tenant or for any assets of Tenant.

220 Remedies.  On the  occurrence of any Default,  Landlord has the option to do
any one or more of the  following  without  any  further  notice or  demand,  in
addition  to and not in  limitation  of any other  remedy  permitted  by Law, in
equity, or by this Lease:

22.1 Application of Tenant Deposit.  Landlord may apply Tenant's deposit held by
Landlord against any amounts  ----------------------------- owing or to pay part
or all of the cost of remedying the Default.

         22.2     Termination.  Landlord  may  terminate  this  Lease by written
                  notice,  in which event Tenant will immediately  surrender the
                  Leased Premises to Landlord (in accordance with the provisions
                  set forth hereinabove), but if Tenant fails to do so, Landlord
                  may without  notice and without  prejudice to any other remedy
                  Landlord might have,  enter and take  possession of the Leased
                  Premises  and remove  Tenant and Tenant's  property  therefrom
                  without being liable to  prosecution  or any claim for damages
                  therefor.

<PAGE>

         22.3     Reletting.  Landlord  may  enter  and take  possession  of the
                  Leased  Premises  without  terminating  this Lease and without
                  being liable to prosecution or any claim for damages therefor,
                  and  Landlord  may change the locks on the doors to the Leased
                  Premises  to  exclude   Tenant   therefrom   and   immediately
                  discontinue   furnishing  any  utilities  and  other  services
                  Landlord has been providing.  If Landlord  terminates Tenant's
                  possession  of the  Leased  Premises,  either  with or without
                  terminating the Lease,  then either:  (a) the aggregate amount
                  of the Base Rent for the  remainder of the Lease Term shall at
                  once  mature and be  immediately  due and payable by Tenant to
                  Landlord,  and  Landlord  shall  have the  right to  immediate
                  recovery of all such amounts,  together with interest  thereon
                  as provided hereinabove;  or (b) Landlord may relet the Leased
                  Premises  either  in the name of  Landlord  or as the agent of
                  Tenant and receive the rent  therefor,  in which event  Tenant
                  will pay to  Landlord,  on  demand,  the costs of  renovating,
                  repairing and altering the Leased  Premises and any deficiency
                  that might arise by reason of such reletting.  Such reletting,
                  if undertaken at Landlord's sole  discretion,  may be for such
                  term or terms  (which  may be  greater  or less  than the then
                  balance of the Lease Term  hereunder)  and on such  conditions
                  (which may  include  concessions  or free rent) as Landlord in
                  Landlord's  absolute  discretion may determine.  Landlord will
                  have no duty to relet the Leased  Premises  and the failure of
                  Landlord  to relet the  Leased  Premises  will not  release or
                  affect Tenant's  liability for Rent or for damages  determined
                  as provided hereinbelow.  In addition, Landlord shall have the
                  right,   from  time  to  time,  to  recover  from  Tenant  all
                  Additional Rent thereafter accruing pursuant to Paragraph 3.2.

         22.4     Rents from Reletting.  Landlord may collect the rents from any
                  reletting and apply the same in the following  order:  (a) the
                  payment  of  the  cost  and  expenses  of  reentry  (including
                  reasonable   attorney's   fees),   redecoration,   repair  and
                  alterations;  and (b) to the  payment of Rent  accrued  and to
                  accrue hereunder.  Any excess shall belong solely to Landlord.
                  Landlord  may,  at any  time and  from  time to time,  sue and
                  recover  judgment  for any  deficiencies  remaining  after the
                  application of the proceeds of reletting as provided above.

22.5 No Abatement.  Any action committed by Landlord  pursuant to this Paragraph
shall in no way cause or  -------------  result in any  abatement of Rent or any
other charge payable by Tenant under this Lease.

22.6 Liquidated  Damages.  Landlord may require Tenant to pay liquidated damages
in an amount equal to the sum ------------------- of the following:

                  (a)        an amount equal to the product of:

                             (i)      the sum of:

          (aa) the monthly Base Rent; plus

          (bb) the amount of Tenant's  portion of the increase in Operating Cost
     as  determined  under  Paragraph  3.2 for the  month in which  the  Default
     occurs; times:

          (ii) the  average  length of time that it has taken  Landlord to lease
     comparable space within the Park;

                             plus

          (b) the then reasonable average cost of remodeling office space within
     the Park (including a 10% supervision fee;

                             plus

(c) the attorney fees and other costs  incurred by Landlord  through the earlier
of: (i) the date of  obtaining  a  judgment  against  Tenant for the  liquidated
damages;  or (ii) Tenant's  voluntary payment of the liquidated damage amount as
determined hereunder;

                             plus

                  (d)        the  unamortized  balance of Tenant's  Construction
                             Cost  loan,  if any,  owing by Tenant  to  Landlord
                             pursuant to Paragraph 5.

                  Nothing herein contained shall limit or prejudice the right of
                  Landlord  to prove for and  obtain as  liquidated  damages  by
                  reason of such  termination,  an amount  equal to the  maximum
                  allowed by any Law in effect at any time when,  and  governing
                  the  proceedings  in which,  such  damages  are to be  proved,
                  whether or not such amount be greater,  equal to, or less than
                  the amount of the difference referred to above.

<PAGE>

         22.7     Option  to  Perform.  Landlord  may  perform  or  cause  to be
                  performed,   but  is  under  no  obligation  to  perform,  the
                  obligations  of  Tenant  under  this  Lease  and may enter the
                  Leased  Premises to  accomplish  such  purpose  without  being
                  liable  to  prosecution  or any claim  for  damages  therefor.
                  Tenant agrees to reimburse  Landlord on demand for any expense
                  or cost, including reasonable  attorneys' fees, which Landlord
                  might or does incur in effecting compliance with this Lease on
                  behalf of Tenant.  Tenant  further  agrees that Landlord shall
                  not be liable  or  responsible  for any  loss,  inconvenience,
                  annoyance  or damage  resulting  to  Tenant or anyone  holding
                  under Tenant for any action taken by Landlord pursuant to this
                  Paragraph 22,  whether caused by the negligence of Landlord or
                  otherwise.

         22.8     Attorney  Fees.  If  Landlord is the  prevailing  party in any
                  action  under  this Lease as a result of  Tenant's  Default or
                  consults or places this Lease or any amount  payable by Tenant
                  hereunder  with  an  attorney  for the  enforcement  of any of
                  Landlord's rights  hereunder,  Tenant agrees in each such case
                  to pay to  Landlord  the  reasonable  fees and other  expenses
                  incurred  by  Landlord  in  connection   therewith  (including
                  without limitation,  all costs and reasonable  attorney's fees
                  incurred  by  Landlord  in  enforcing  and  collecting  on any
                  judgment  rendered against Tenant in Landlord's  favor) to the
                  extent permitted by Law.

         22.9     Reservation  of Rights.  The rights  granted to or reserved by
                  Landlord in this Lease are  cumulative of every other right or
                  remedy which Landlord might otherwise have at law or in equity
                  and the  exercise of one or more  rights or remedies  will not
                  prejudice  the  concurrent  or  subsequent  exercise  of other
                  rights or remedies.

         22.10    Landlord Non-Waiver of Remedies.  No action by Landlord during
                  the Lease Term will be deemed an  acceptance  of an  attempted
                  surrender of the Leased  Premises and no agreement to accept a
                  surrender of the Leased  Premises will be valid unless made in
                  writing  and  signed  by  Landlord.   No  re-entry  or  taking
                  possession  of  the  Leased   Premises  by  Landlord  will  be
                  construed as an election by Landlord to terminate  this Lease,
                  unless a written  notice of  termination  is given to  Tenant.
                  Notwithstanding   any  such  reletting,   re-entry  or  taking
                  possession,  Landlord  may at any  time  thereafter  elect  to
                  terminate  this  Lease  for  a  previous  Default.  Landlord's
                  acceptance of Rent  following the occurrence of a Default will
                  not be  construed as  Landlord's  waiver of such  Default.  No
                  waiver by Landlord of any Default will be deemed to constitute
                  a waiver of any other or future Default hereunder. Forbearance
                  by  Landlord  to enforce  one or more of the  remedies  herein
                  provided  will not be  deemed  to  constitute  a waiver of any
                  Default.  The  failure of  Landlord  to enforce  the  Building
                  Regulations against Tenant or any other tenant in the Building
                  will not be  deemed a waiver  thereof.  No  provision  of this
                  Lease will be deemed to have been  waived by  Landlord  unless
                  such waiver is in writing signed by Landlord.

23. Landlord's Transfer.  In the event Landlord transfers Landlord's interest in
the  Building,  Landlord  will thereby be released  from any further  obligation
hereunder and the transferee  will  thereafter be liable for the  performance of
any  obligations  of  Landlord  hereunder  and Tenant  agrees to attorn and look
solely to the transferee for the performance of such obligations.  The agreement
of Tenant to attorn to the  transferee of Landlord will survive any  termination
of rights of Landlord in the Building  and Tenant  agrees to execute and deliver
to the  transferee  or  Landlord  from time to time  within  ten (10) days after
written request therefor all instruments  which might be required by Landlord to
confirm such attornment.

24.  Subordination.  This  Lease and all  rights of Tenant  hereunder  will,  at
Landlord's option, be subject and subordinate to all Encumbrances. Tenant agrees
to execute and deliver to Landlord  from time to time within ten (10) days after
written  request by  Landlord  all  instruments  which  might be required by any
Holder to confirm such  subordination.  Notwithstanding  the  foregoing,  Tenant
agrees that any Holder will have the right at any time to subordinate any rights
of such  Holder to the  rights  of Tenant  under  this  Lease on such  terms and
subject to such  conditions  as such Holder deems  appropriate  in such Holder's
absolute discretion.

<PAGE>

25. Certificates.  Tenant agrees to execute and deliver from time to time within
ten (10) days after  written  request by Landlord a  certificate,  to the extent
true or except as otherwise set forth in the  certificate,  certifying that: (a)
Tenant has entered into  occupancy of the Leased  Premises and is presently open
and conducting Tenant's business with the public in the Leased Premises; (b) the
amount of Base Rent payable by Tenant hereunder; (c) this Lease is in full force
and effect and has not been assigned,  modified,  supplemented  or amended;  (d)
neither Landlord nor Tenant is in default  hereunder;  (e) this Lease represents
the  entire  agreement  between  Landlord  and Tenant  pertaining  to the Leased
Premises;  (f) the Expiration  Date;  (g) all conditions  under this Lease to be
performed by Landlord have been  satisfied;  (h) no Rent has been paid more than
thirty (30) days in advance of its due date; (i) no defense or offset  currently
exists or is claimed by Tenant against  Landlord or against  enforcement of this
Lease by  Landlord;  (j) the  address for notices to be sent to Tenant is as set
forth in such certificate or at the Leased  Premises;  (k) Tenant will look only
to  Landlord  for  return  of  any  deposit   hereunder;   (l)  and  such  other
certifications  which might reasonably be required by Landlord.  The certificate
will also contain an agreement by Tenant with Holder that after the date of such
certificate, Tenant will not: pay any Rent more than thirty (30) days in advance
of its  due  date;  surrender  or  consent  to the  modification,  amendment  or
termination of this Lease by Landlord  without the prior written  consent of the
Holder;  or seek to  terminate  this Lease by reason of any  default by Landlord
until Tenant has given thirty (30) days prior written  notice of such default to
Holder and such default shall not have been cured within a reasonable time after
giving  such  notice.  Tenant will  furnish to  Landlord  from time to time when
requested by Landlord a statement of the financial  condition of Tenant prepared
by an independent,  certified public  accountant the chief financial  officer of
Tenant in form reasonably satisfactory to Landlord.

26. Hazardous Materials. Tenant shall not cause or permit any Hazardous Material
to be brought upon, kept or used in or about the Building or the Leased Premises
by Tenant,  its agents,  employees,  contractors  or invitees  without the prior
written consent of Landlord,  which Landlord shall not unreasonably  withhold as
long as Tenant  demonstrates  to Landlord's  reasonable  satisfaction  that such
Hazardous Material is necessary or useful to Tenant's business and will be used,
kept and stored  within the Leased  Premises in a manner that  complies with all
Laws regulating any such Hazardous Material.

         26.1     Indemnification.  If Tenant  breaches the  obligations of this
                  Paragraph, or if the presence of Hazardous Material within the
                  Building or the Leased  Premises caused or permitted by Tenant
                  results  in  contamination  of  the  Leased  Premises,  or  if
                  contamination  of the  Building  or  the  Leased  Premises  by
                  Hazardous  Material  otherwise  occurs  for  which  Tenant  is
                  legally  liable to Landlord  for damage  resulting  therefrom,
                  then Tenant shall indemnify, defend and hold Landlord harmless
                  from any and all claims, judgments, damages, penalties, fines,
                  costs,  liabilities or losses incurred by Landlord  (including
                  diminution  in value of the Leased  Premises,  damages for the
                  loss or  restriction  on use of rentable or usable space or of
                  any amenity of the Leased  Premises,  damages arising from any
                  adverse  impact  on  marketing  of  space,  and  sums  paid in
                  settlement of claims,  attorneys'  fees,  consultant  fees and
                  expert  fees) which arise  during or after the Lease Term as a
                  result of such contamination. This indemnification of Landlord
                  by Tenant  includes  costs  incurred by Landlord in connection
                  with any  investigation  of site  conditions and any action to
                  remedy  any  contamination  of the  Land,  Building  or Leased
                  Premises (a  "Discharge"),  including any clean-up,  remedial,
                  removal  or  restoration  work  required  by any  Governmental
                  Authority because of Hazardous Material present in the soil or
                  ground  water on or  under  the  Land.  Without  limiting  the
                  foregoing,  if the presence of any Hazardous  Material  within
                  the  Building or the Leased  Premises  caused or  permitted by
                  Tenant  results in Discharge,  Tenant shall  promptly take all
                  actions  at its sole  expense as are  necessary  to return the
                  Land,  Building or Leased  Premises to the condition  existing
                  prior to the Discharge;  provided, that Landlord's approval of
                  such actions shall first be obtained.  The foregoing indemnity
                  shall survive the  Expiration  Date or earlier  termination of
                  this Lease.

         26.2     Disclosure.  Within  thirty  (30) days of  receipt  of written
                  request from  Landlord,  Tenant shall disclose to Landlord the
                  names  and  amounts  of  all  Hazardous   Materials,   or  any
                  combination thereof, which were stored, used or disposed of on
                  the Leased Premises,  or which Tenant intends to store, use or
                  dispose of on the Leased Premises.

<PAGE>

         26.3     Inspection.  Landlord and its agents shall have the right, but
                  not the duty,  to inspect  the Leased  Premises at any time to
                  determine   Tenant's   compliance   with  the  terms  of  this
                  Paragraph.  Notwithstanding any other provision of this Lease,
                  if Tenant is not in compliance with this  Paragraph,  Landlord
                  shall  have the right to  immediately  enter  upon the  Leased
                  Premises to remedy any Discharge caused by Tenant's failure to
                  comply and Tenant shall  reimburse  Landlord for all costs and
                  expenses  incurred by Landlord as provided in this  Paragraph.
                  Landlord   shall   use   reasonable    efforts,    under   the
                  circumstances,   to  minimize   interference   with   Tenant's
                  business,  but shall not be liable for any interference caused
                  thereby.

26.4  Default.  Any default  under this  Paragraph  shall be a material  Default
enabling Landlord to exercise any ------- of the remedies set forth herein.

27.  Relocation.  Landlord  shall have the right,  upon giving Tenant sixty (60)
days'  written  notice,  to  relocate  Tenant to other  space  elsewhere  in the
Building, of approximately the same size,  configuration and decor as the Leased
Premises,  and to move and place  Tenant in such new  space at  Landlord's  sole
expense;  provided,  however, Tenant shall have no obligation to move until such
remodeling is completed.  Tenant shall acknowledge  Landlord's right to relocate
Tenant and Tenant's  acceptance of the new space within ten (10) days of receipt
by Tenant of Landlord's written relocation notice referenced above. In the event
Tenant  does not sign such an  acknowledgment  within  said ten (10) day period,
then at  Landlord's  option  this  Lease  will  automatically  terminate  at the
expiration of the relocation  period. In the event Landlord moves Tenant to said
relocation space,  then this Lease and each and all of the terms,  covenants and
conditions  hereof shall remain in full force and effect,  such relocation space
will be deemed to be the Leased Premises  hereunder and Landlord and Tenant will
promptly execute an amendment to the Lease evidencing such relocation.

28.  Parking.  So long as this  Lease is in full force and effect and no Default
has  occurred,  Landlord  will  provide  to Tenant,  at no cost to  Tenant,  the
nonexclusive use of surface parking on a first-come,  first-served basis, in the
designated parking areas located proximate to the Building. Such parking will be
provided  on a basis of not less than one  parking  space for every two  hundred
seventy-five  (275)  square feet of Net  Rentable  Area in the Leased  Premises.
Tenant  agrees to use its best  efforts to prevent its  employees,  invitees and
licensees  from  utilizing  more than one  parking  space for every two  hundred
seventy-five  (275)  square feet of Net  Rentable  Area  contained in the Leased
Premises. If Tenant's employees,  invitees and licensees regularly use more than
the maximum number of parking spaces  allocated to Tenant under this  Paragraph,
Tenant agrees to remedy such excess use by complying with  Landlord's  direction
to either:  (a) pay to Landlord as  Additional  Rent the actual cost incurred by
Landlord in providing  such  additional  parking,  or (b)  relocate  such excess
parking to an off-site location designated by Landlord.

29.  Signage.  Tenant will be  provided,  at  Landlord's  expense,  one building
standard strip on the lobby directory per 2,500 square feet of Net Rentable Area
contained  in the Leased  Premises.  Landlord  will also  provide,  at  Tenant's
expense,  one suite  identification  sign adjacent to the main entry door of the
Leased  Premises  in  Landlord's  standard  form.  Tenant  will  pay  Landlord's
reasonable charges for changing such building directory and identification  sign
at Tenant's request.

30.      Miscellaneous.  Landlord and Tenant further agree as follows:
         -------------

30.1 Park and Building Name.  Landlord  reserves the right at any time to change
the name of either the Park  ------------------------  or the  Building  without
liability to Tenant.

         30.2     Brokerage.  Landlord and Tenant  hereby  acknowledge  that the
                  lease of space contemplated herein was brought about solely by
                  the efforts of  TMK/Hogan  Joint  Venture,  doing  business as
                  TMK/Hogan   Commercial  Real  Estate   Services   ("Landlord's
                  Broker")  and  Leonard  E.  Sullivan  and  Company  ("Tenant's
                  Broker")  and  Tenant  has  dealt  with  no  other  broker  in
                  connection with the leasing of the Leased  Premises.  Landlord
                  agrees  to  pay  the  brokerage   commission  earned  by  each
                  Landlord's  Broker  and  Tenant's  Broker in  accordance  with
                  separate  written  agreements  between  Landlord and each such
                  broker.  If any other  claims  for  commissions  are ever made
                  against  either  Landlord  or Tenant in  connection  with this
                  Lease,  all such claims shall be handled and paid by the party
                  whose  actions form the basis of such  claims,  and such party
                  shall  indemnify  and hold harmless the other from and against
                  any and  all  such  claims  or  demands  with  respect  to any
                  commissions  asserted  by any Person in  connection  with this
                  Lease.  Additionally,  in the  event  Landlord  has  paid  any
                  commission  installment to Tenant's Broker, and (a) this Lease
                  is terminated by Tenant prior to the Commencement Date; or (b)
                  Tenant fails to occupy and accept the Leased  Premises for any
                  reason constituting a Default by Tenant,  Tenant promptly upon
                  written demand from Landlord shall reimburse  Landlord for any
                  portion  of such  commission  installment  which  has not been
                  cancelled and returned to Landlord.  These  reimbursement  and
                  indemnification  provisions shall survive any such termination
                  of this Lease.

<PAGE>

         30.3     Notices. Any notice to be given hereunder will be deemed to be
                  given  three (3) days after  being  deposited  with the United
                  States Postal Service,  certified or registered  mail,  return
                  receipt requested, with sufficient postage prepaid,  addressed
                  as stated below, or on the day of its personal delivery to the
                  office  of  the  respective  party  set  forth  below;  and if
                  telecopied or delivered by overnight courier, such notice will
                  be  deemed  to  be  given  on  the  business  day  immediately
                  following the day on which it was telecopied or deposited with
                  the courier.

                  Any Notice to Tenant shall be sent to:

                             ETHOS COMMUNICATIONS, INC.

                             Attention:           Bob Crull, President and CEO
                             Telephone:           (___)
                             Facsimile:           (___)

                  Any Notice to Landlord shall be sent to:

                             TMK Income Properties, L.P.
                             Suite 300, 1950 Stonegate Drive
                             Vestavia Hills, Oklahoma 35242-2516
                             Attention:           Robert C. McLean
                             Telephone:           (205) 967-8362
                             Facsimile:           (205) 969-1849

                             With a copy at the same time and in the same manner
to:

                             Lloyd T. Hardin, Jr., Esq.
                             Andrews Davis Legg Bixler Milsten & Price
                             Suite 500, 500 West Main Street
                             Oklahoma City, Oklahoma 73102
                             Telephone:           (405) 272-9241
                             Facsimile:           (405) 235-8786

                  Either party may at any time  designate  any other address for
                  notices by giving written notice thereof to the other party.

         30.4     Joint and Several Liability.  If Tenant comprises more than
                  one Person,  Tenant's  obligations  hereunder
                  ---------------------------
                  are joint and several.

         30.5     Attorneys'  Fees.  If  either  party  is  required  to hire an
                  attorney  because of the breach by the other of any  provision
                  of this Lease,  then the prevailing  party will be entitled to
                  receive its reasonable  attorneys'  fees and expenses from the
                  other to the extent permitted by Law.

         30.6     Entire  Agreement and Amendment.  Tenant agrees that there are
                  no representations,  understandings,  stipulations, agreements
                  or promises  pertaining  to this Lease or the Leased  Premises
                  which are not  incorporated  herein.  This  Lease  will not be
                  altered,  waived,  amended  or  extended,  except by a written
                  agreement signed by Landlord and Tenant.

         30.7     Severability.  If any  clause or  provision  of this  Lease is
                  illegal,  invalid or unenforceable under any present or future
                  Law, the remainder of this Lease will not be affected thereby.
                  It is the  intention of the parties  that if any  provision is
                  held to be illegal,  invalid or  unenforceable,  there will be
                  added in lieu  thereof a provision as similar in terms to such
                  provision as is possible and be legal, valid and enforceable.

         30.8     Binding  Effect.  The  provisions  of this Lease will be
                  binding on and inure to the  benefit of Landlord
                  ---------------
                  and Tenant and their respective successors and permitted
                  assigns.

         30.9     Governing  Law.  This Lease  will be  construed  and  enforced
                  according to the internal  Laws of the State of Oklahoma.  All
                  claims,  disputes and other matters in question arising out of
                  or  relating  to this Lease,  or the breach  thereof,  will be
                  decided by proceedings  instituted and litigated in a court of
                  competent jurisdiction in the State of Oklahoma.

<PAGE>

                                       18

         30.10    Limitation  of Damages to Tenant.  In the event of any alleged
                  default of Landlord  under this or any other  provision of the
                  Lease,  Tenant  shall not seek to secure any claim for damages
                  or   indemnification  by  any  attachment,   levy,   judgment,
                  garnishment or other security proceedings against any property
                  of Landlord other than Landlord's interest in the Building, it
                  being  agreed  and  understood,   however,  that  the  maximum
                  recovery  of  Tenant  against  Landlord  shall be in an amount
                  equal to Landlord's  equity  interest in the  Building.  It is
                  understood  and agreed that in no event shall  Tenant have any
                  right to levy execution against any property of Landlord other
                  than its  interest in the  Building.  Such right of  execution
                  shall be subordinate and subject to any  Encumbrance  upon the
                  Building.

         30.11    Time.  Time is of the essence in the  performance  of
                  Landlord's  and  Tenant's  respective  obligations
                  ----
                  hereunder.

         IN WITNESS WHEREOF, this Lease has been executed and delivered at Quail
Springs  Parkway Plaza,  by the duly  authorized  officers of the parties on the
date first above written.

                                                     Landlord:
                                                     --------

                                                TMK INCOME PROPERTIES, L.P.,
                                                a Delaware limited partnership

                                               By: Stonegate Realty Corporation,
                                                   a Delaware corporation,
                                                   as General Partner

                                                     By:
                                               Robert C. McLean, Vice President

                                                     Tenant:
                                                     ------

                                            ETHOS COMMUNICATIONS, INC.,
                                            a(n) __________________ corporation

                                          By:
                                          Name:  Bob Crull, President and CEO

List of Attachments and Schedules:

         Schedule 1:             Description of Leased Premises
         Schedule 2:             Final Working Drawings
         Schedule 3:             Form of Construction Agreement
         Schedule 4:             Building Regulations
         Schedule 5:             Additional Construction Compliance Requirements

103086v1em.

<PAGE>

                                                   Schedule "1"
                                                 Page 1 of 1 Page

                                                    SCHEDULE "1"

                                         Description of the Leased Premises

                                             (floor plan to be inserted)

         The Leased Premises consists of approximately  3,978 square feet of Net
Rentable  Area  located  on the  third  (3rd)  floor  of the  West  Tower of the
Building, designated as Suite _____.

<PAGE>

                                                        Schedule "2"
                                                     Page 1 of 1 page

                                                        SCHEDULE "2"

         Final Working Drawings

                                                     [Attached]

<PAGE>

                            103086v1em Schedule "3"
                                Page 1 of 2 Pages

                                  SCHEDULE "3"

                             Construction Agreement

         THIS AGREEMENT is made the _______ day of _____________,  1999,
between TMK INCOME  PROPERTIES,  L.P., a Delaware
                                    -------        -------------
limited partnership, having an office at 204 North Robinson, Suite 600, Oklahoma
City,  Oklahoma 73102 (the  "Landlord"),  and ETHOS  COMMUNICATIONS,  INC., a(n)
__________________       corporation,       having       an       office      at
________________________________, Oklahoma ______________ (the "Tenant").

                                                W I T N E S S E T H :

         WHEREAS,  Landlord and Tenant have heretofore  executed and delivered a
certain  Office Lease (the "Lease")  dated  __________________,  ____,  covering
certain  space (the "Leased  Premises")  located on the third (3rd) floor of the
West  Tower  of  the  Quail  Springs  Office  Building,   and  providing  for  a
Commencement Date of _____________, _____;

         WHEREAS,   Landlord  has  prepared  the  Final  Working   Drawings  for
construction of the Leasehold Improvements which are more particularly described
at Exhibit "A" attached as a part hereof; and

         WHEREAS,  by means of this  Agreement,  Landlord  and Tenant  desire to
record  their  agreements  with  respect to the  construction  of the  Leasehold
Improvements.

         NOW,  THEREFORE,  in  consideration  of the  mutual  agreements  herein
contained it is agreed as follows:

1.       Definitions.  The capitalized terms used in this Agreement will have
the meanings indicated in the Lease.
         -----------

2.  Agreement to Construct.  Landlord  hereby agrees to diligently  construct or
cause to be constructed  the Leasehold  Improvements  in substantial  compliance
with the Final Working Drawings.  All instructions to contractors and workmen on
the Leased Premises to be made by Tenant,  if any, will be made through Landlord
and Tenant will not issue any other directions to such contractors or workmen.

3.       Construction  Cost. The  Construction  Cost of the Leasehold
Improvements  to be installed  pursuant to the Final
         ------------------
Working Drawings will be the following:

         Contractor's guaranteed maximum cost             $___________

         Less: The Improvement Allowance
         ($5.00 per square foot of
         Net Rentable Area)                               ($___________)

         Plus: Landlord's supervision fee                  $___________
         of 10% of Contractor's
         guaranteed maximum cost

         Total Construction Cost to be
         paid by Tenant

         ("Tenant's Construction Cost")                    $

4. Payment by Tenant.  Tenant approves the foregoing  Construction  Cost. Tenant
agrees to pay one-half of Tenant's -----------------  Construction Cost upon the
execution of this Construction  Agreement.  The balance of Tenant's Construction
Cost  will be paid to  Landlord  on the date of  Substantial  Completion  of the
Leasehold Improvements.

5.  Changes.  In the event  Tenant  orders any change in or addition to the work
described in the Final Working -------  Drawings,  all increased costs resulting
therefrom will be paid by Tenant.

<PAGE>

 Schedule "3" Page 2 of 2 Pages

6. Tenant's  Access for Finishes.  Landlord will permit Tenant and its agents or
contractors  (provided any such agents and/or  contractors  have been previously
approved by  Landlord)  to enter the Leased  Premises no less than  fifteen (15)
days prior to the date of Substantial  Completion of the Leasehold  Improvements
to perform finish work or such other work and decorations in the Leased Premises
in accordance with the approved Final Working Drawings or as otherwise  approved
by Landlord.  Tenant shall ensure that Tenant's  agents and  contractors  do not
interfere with Landlord's  agents,  contractors and subcontractors in completing
the timely  construction of the Leasehold  Improvements.  Any such access to the
Leased  Premises prior to Substantial  Completion of the Leasehold  Improvements
will be at the sole risk of Tenant,  its employees,  agents and  representatives
and  Landlord  shall  have no  liability  therefor.  Tenant  shall save and hold
Landlord  harmless from any claims and  liabilities  asserted by Tenant or other
Persons arising from the early access to the Leased Premises granted herein.

7.  Substantial  Completion.  Landlord  will certify to Tenant the date on which
Substantial  Completion  occurs.  Tenant  will  thereafter  inspect  the  Leased
Premises  and provide to  Landlord  in writing a listing of any defects  therein
observed by Tenant within ten (10) days after Tenant's first day of occupancy of
the Leased Premises.  Landlord agrees to expeditiously  cause such defects to be
cured to the reasonable satisfaction of Tenant.

         IN WITNESS  WHEREOF,  this Agreement has been executed and delivered at
Oklahoma City, Oklahoma the date first above written.

                                                     Landlord:
                                                     --------

                                             TMK INCOME PROPERTIES, L.P.,
                                             a Delaware limited partnership

                                          By:      Stonegate Realty Corporation,
                                                   a Delaware corporation,
                                                   as General Partner

                                                     By:
                                               Robert C. McLean, Vice President

                                                     Tenant
                                               ETHOS COMMUNICATIONS, INC.,
                                              a(n)           corporation
                                                ------------------------------

                                           By:
                                           Name:  Bob Crull, President and CEO

<PAGE>

                                                               Schedule "4"
                                                            Page 1 of 3 Pages

                                                    SCHEDULE "4"

                                                Building Regulations

1. Access. The entrances, lobbies, passages, corridors, elevators, stairways and
other Common Areas will not be  encumbered  or  obstructed  by any Tenant or its
agents,  employees,  licensees or invitees or be used for any purpose other than
for access to the Leased  Premises.  Tenant will not use the Leased  Premises to
engage or pay any employees who do not work in the Building,  provide an address
in the Building in any  advertisement  seeking  employees  who will not actually
work in the Building or otherwise permit persons to visit the Leased Premises in
such numbers or under such conditions as to interfere with the use of the Common
Areas by other tenants.  Landlord  reserves the right to regulate the use of the
Common  Areas of the  Building by Tenant,  its agents,  employees,  licenses and
invitees  and  by  persons  making  deliveries  to  Tenant  (including,  without
limitation, the right to designate hours for deliveries,  Building entrances and
elevators  for such use).  No showcases or other  articles will be placed in the
Common Areas without the prior written consent of Landlord.

2. Air Conditioning. Heat and air conditioning will be provided by Landlord only
during the published  Business Hours for the Building as set forth in the Lease.
Tenant may request  heating or air  conditioning  during  periods in addition to
such Business  Hours by use of Tenant's  telephone  system to access  procedures
with  Landlord's  HVAC control system  computer in accordance  with that systems
access  procedures.  Such request will state the  beginning  and ending hours of
such additional service.  Tenant will submit to Landlord a list of all personnel
who are authorized to make such requests.  Charges for such additional  services
will be  determined  by Landlord for the hours of operation and will be based on
the operating costs incurred by Landlord by reason of such additional service.

3. Building Hours.  Landlord from time to time will establish and provide Tenant
with a schedule of Business Hours for the Building.  Landlord reserves the right
to exclude from the Building during nonbusiness hours all persons not authorized
in writing, by pass or otherwise,  to have access to the Building and the Leased
Premises.  Each Tenant will be  responsible  for all persons  authorized by such
Tenant to have access to the  Building  and will be liable to  Landlord  for all
acts of such  persons  while in the  Building.  Landlord may require all persons
given  access to the  Building  during  nonbusiness  hours to sign a register on
entering and leaving the Building.  Any person whose presence in the Building at
any time might  adversely  affect,  in the  judgment  of  Landlord,  the safety,
character,  reputation or interests of the Building or its tenants may be denied
access to the Building or may be ejected  therefrom.  During the  continuance of
any  public  disturbance,  Landlord  may  prevent  all  access to the  Building.
Landlord  may  require  any person  leaving  any area of the  Building  with any
package or other object to exhibit a pass from Tenant  authorizing such removal.
The failure to establish or enforce any of the foregoing  requirements  will not
impose any  liability  on Landlord to any Tenant for the removal of any property
from the  Building or  otherwise.  Landlord  will not be liable to any Tenant or
other  person for  damages or loss  arising  from the  admission,  exclusion  or
ejection of any person to or from the Leased Premises or the Building.

4. Care. Tenant will not mark,  paint,  drill into or in any way deface any part
of the Leased Premises or the Building;  provided,  however,  that the preceding
prohibition will not preclude Tenant from hanging typical frames and artwork, so
long as such is performed in a careful fashion and with appropriate wall hanging
attachments that reasonably would be expected to limit the damage or restoration
to the Leasehold Improvements.  No boring, cutting or stringing of wires will be
permitted  except with the prior  written  consent of  Landlord  and as Landlord
might direct.  Tenant will not install any tile or other similar floor  covering
without  the  prior  written   consent  of  Landlord.   Tenant  will  refer  all
contractors,  representatives and installation technicians rendering any service
to Tenant to Landlord for  Landlord's  supervision,  approval and control before
the performance of any such service (the foregoing  provisions will apply to all
work performed in the Building at Tenant's request,  including,  but not limited
to, installations of telephone, telegraph equipment,  electrical devices and all
installations of every nature affecting floors, walls, woodwork,  trim, windows,
ceilings, equipment and any other portion of the Building).

5. Dangerous Substances.  Neither Tenant nor its agents, employees, licensees or
invitees  will at any time bring or keep on the Leased  Premises any  flammable,
combustible or explosive fluid, chemical or substance. No acids, vapors or other
damaging  materials will be discharged  into the waste lines,  vents or flues of
the Building.

6. Doors.  Corridor doors, when not in use, will be kept closed.  Each Tenant on
leaving the Leased Premises will ----- lock all corridor doors.

<PAGE>

                                                                 Schedule "4"
                                                             Page 2 of 3 Pages

7. Drapes. No awnings or other projections will be attached to the outside walls
of the Building.  No curtains,  blinds,  shades,  screens or covering other than
those  approved by Landlord  will be attached to, hung in, or used in connection
with any window or door of the Leased Premises without the prior written consent
of  Landlord.  Such  coverings  will be of a  quality,  type,  design  and color
approved by Landlord and attached in the manner approved by Landlord.

8. Equipment. Without first obtaining Landlord's written permission, Tenant will
not  install,  attach  or bring  into  the  Leased  Premises  any  machinery  or
equipment,  other  than  normal  office  equipment,  or  any  instrument,  duct,
refrigerator,   air  conditioner,   heater,  water  cooler  or  other  appliance
(excepting normal kitchen  appliances such as microwave ovens,  coffee pots, and
dishwasher)  requiring the use of gas, electric current or water.  Tenant agrees
to limit the use of electric current to the capacity of existing feeders, risers
and wiring  installation.  All additional  electrical  wiring will be done by or
supervised  by  Landlord  and Tenant  will bear the  expense  of any  additional
installation.  Any breach of the foregoing will authorize  Landlord to enter the
Leased  Premises,  remove what Tenant has  installed and charge the cost of such
removal and any damage that may be sustained thereby to Tenant.

9.       Exterminators.  From time to time,  Landlord will cause the Leased
Premises to be exterminated to the satisfaction
         -------------
of and by exterminators approved by Landlord.

10. Food. Tenant will not, without Landlord's prior written approval, permit any
cooking  (other than the  conduct of cooking  and heating of items in  microwave
ovens,  toasters and coffee makers which is customary for offices similar to the
type  being  leased  by  Tenant  under  the  Lease),   conduct  any  restaurant,
luncheonette  or  cafeteria  for the sale or  service  of food or  beverages  to
Tenant's  employees  or to  others,  or cause or permit  any odors of cooking or
other processes or any unusual or objectionable odors to emanate from the Leased
Premises. Tenant will not, without Landlord's prior written approval, install or
permit the installation or use of any food, beverage,  cigarette, cigar or stamp
dispensing  and/or  vending  machine,  or  permit  the  delivery  of any food or
beverages (except for take out lunch delivery  services) to the Leased Premises,
except by such persons as are approved by Landlord. No food or beverages will be
carried in the Common Areas or elevators except in closed containers.

11.  Locks.  Landlord  will  provide  all locks in the  Leased  Premises  and no
additional  locks or bolts of any kind  will be  placed on any door or window by
Tenant,  nor will any changes be made in existing locks or the mechanism thereof
without the prior written  consent of Landlord.  A reasonable  number of keys to
such locks will be  furnished  by  Landlord  to each  Tenant and Tenant will not
permit any duplicate keys to be made by any person other than  Landlord.  Tenant
will, on the termination of its Lease, restore to Landlord all keys furnished to
Tenant  and in the event of the loss of any keys so  furnished  Tenant  will pay
Landlord the cost thereof.

12.  Maintenance.  Tenant will promptly  notify  Landlord of any accident  which
occurs and any  defect or  maintenance  required  on the  Leased  Premises.  The
requests of Tenant will be attended to only on application to Landlord's  office
and  Landlord's  employees  will not perform any work unless under  instructions
from Landlord's office.

13. Moving. No load shall be placed on the Leased Premises  exceeding an average
weight of eighty (80)  pounds of live load per square  foot of floor  area.  All
movement of safes, freight,  furniture or bulky items of any description will be
performed  by persons  approved by Landlord  under the  supervision  of Landlord
during the hours and according to such routes and methods as Landlord designates
from time to time. Each Tenant will notify Landlord prior to the delivery of any
such items and Landlord  will approve the weight and position of safes and other
heavy  items,  which  will in all  cases  stand on weight  distribution  devises
approved by Landlord.  Landlord  reserves the right to inspect all freight to be
brought into the  Building  and to exclude  from the Building all freight  which
violates any of these  Regulations  or Tenant's  Lease.  All damages done to the
Building by the  movement  or  positioning  of any  property of a Tenant will be
repaired at the expense of such Tenant and  Landlord  will not be liable for the
acts of any person  engaged in or any damage or loss of any  property  or person
resulting from any act in connection with such movement or positioning.

14. Noise.  Tenant will not make or permit to be made any unseemly or disturbing
noises or disturb or interfere with
         -----
other Tenants of the Building.

15. Plumbing. The water closets and other plumbing fixtures will not be used for
any  purpose  other than that for which they were  constructed  and no  improper
substances will be thrown therein.  Landlord will have the right to regulate and
limit the water usage of Tenant and to impose such  charges as might be required
to prevent waste thereof.  All damages resulting from the misuse of any plumbing
fixture by Tenant, its agents, employees, licensees or invitees will be borne by
Tenant.

<PAGE>

103086v1em.                                                Schedule "4"
                                                           Page 3 of 3 Pages

16.  Prohibited Use. No space in the Building will be used for  manufacturing or
for  lodging,  sleeping or any immoral or illegal  purpose.  No space other than
space so designated by Landlord will be used for the storage of  merchandise  or
for the sale of  merchandise,  goods or  property  and no auction  sales will be
conducted by Tenant without the prior written  consent of Landlord.  Tenant will
not occupy or permit any portion of the Leased  Premises to be occupied  for any
purpose or in any manner which is contrary to the provisions of the "Declaration
of Protective Covenants of Quail Springs Office Park" and any amendments thereto
all as filed in the Office of the County Clerk of Oklahoma County,  Oklahoma, or
any zoning, building code or other law or regulation governing the Building.

17. Services. Unless expressly permitted by Landlord, no person will be employed
by any  Tenant to  perform  janitorial  or  maintenance  services  on the Leased
Premises.  Each Tenant and its agents,  employees,  licensees  and invitees will
cooperate with Landlord in keeping the Building neat and clean.  Tenant will not
throw or sweep anything into the Common Areas of the Building.  Each Tenant will
provide  light,  electrical  power  and  water  to  the  employees  of  Landlord
performing janitorial services and maintenance in the Leased Premises.  Landlord
will  be in  no  way  responsible  to  any  Tenant  (a)  for  theft,  mysterious
disappearance or loss of property from the Leased Premises,  however  occurring,
or (b) for damage done to the furniture or other  effects of any Tenant  arising
from the gross negligence of Landlord's agents, employees or contractors working
in the Leased Premises.

18.  Signs.  One Building  directory  will be furnished in the main lobby of the
Building at the expense of Landlord and Landlord  will  determine  the number of
listings  thereon  for each  Tenant.  No sign,  advertisement,  notice  or other
lettering  will be  exhibited,  inscribed,  painted  or affixed by Tenant on any
window or other part of the Leased  Premises or the  Building  without the prior
written  consent of Landlord.  In the event of the violation of the foregoing by
Tenant,  Landlord may remove the same without any  liability  and may charge the
expense  incurred in such  removal to Tenant.  All  markings on the doors in the
Leased Premises will be inscribed,  painted or affixed for Tenant by Landlord or
by personnel  approved by Landlord,  at the expense of Tenant,  and will be of a
size, color, style and location  acceptable to Landlord.  Landlord will have the
right to prohibit any  advertising by any Tenant which,  in Landlord's  opinion,
tends to impair the reputation of the Building or its  desirability as an office
building  and on written  notice  from  Landlord,  Tenant will  refrain  from or
discontinue  such  advertising.  Tenant will not use the name of the Building or
Landlord in any advertising without the express written consent of Landlord.

19. Vendors. Canvassing,  soliciting and peddling in the Building are prohibited
and Tenant will cooperate with
         -------
Landlord to prevent the same.  No Tenant will  purchase  water,  ice,  towels or
other like services from any person not
approved by Landlord.

20. Vehicles and/or Animals.  No bicycles,  vehicles or animals of any kind will
be brought  into the Building or kept in the Leased  Premises.  Only hand trucks
equipped  with  rubber  tires and side  guards  will be used in the  Building by
Tenant or its agents, employees, licensees or invitees.

21. Windows. The windows,  doors and vents which admit light and/or air into the
Common Areas or the Building  will not be  obstructed  by Tenant and no bottles,
parcels, plants or other articles will be placed on any windowsills. Tenant will
at all times keep draperies  adjusted to block the direct rays of the sun and to
reduce the Building's air conditioning requirements.

22.  Modification.  Landlord  reserves the right to rescind any of the foregoing
regulations  and to make such other and  further  reasonable  regulations  as in
Landlord's  judgment  are needed from time to time for the  safety,  protection,
care and cleanliness of the Building, the operation thereof, the preservation of
good order therein and the  protection  and comfort of Tenants and their agents,
employees,  licensees and invitees.  Such additional regulations will be binding
on Tenant when written notice thereof is given to Tenant by Landlord.

<PAGE>

Schedule "5"
Page 1 of 1 Page

                                  SCHEDULE "5"

                 Additional Construction Compliance Requirements

         (a)  Tenant's  Obligations.  In the  event  Tenant in any  instance  is
permitted  under  the  Lease  to  separately   construct  or  contract  for  the
construction of all or any portion of the Leasehold Improvements  (including any
fixtures  or  equipment  to be  installed  by Tenant and  attached to the walls,
floors or  ceiling)  or to make  alterations  thereto,  Tenant  will  cause such
installation,   construction  or  alteration  ("Tenant   Installations")  to  be
performed on the following basis: (a) Tenant will have previously  furnished the
identity of Tenant's proposed general contractor to Landlord for approval, which
approval  by  Landlord  will  not be  unreasonably  withheld;  (b)  such  Tenant
Installations  shall not weaken,  impair or in any other way have a  detrimental
impact on the structural  integrity of the Leased Premises,  the Building or the
leasehold  improvements of other tenants of the Building or in any way adversely
affect the  mechanical or electrical  systems of the Building;  (c) Tenant shall
obtain  all  necessary  licenses,   permits  and  similar   authorizations  from
Governmental  Authorities  in a timely  manner and shall  further cause all such
Tenant  Installations  to  comply  with  all  applicable  Laws and  other  Legal
Requirements;   (d)  all  Tenant  Installations  shall  be  completed  with  due
diligence,  in a good and  workmanlike  manner and in compliance  with the Final
Working Drawings (approved by Landlord, whether in compliance with the following
procedure, or otherwise);  (e) prior to commencing construction and at all times
during  construction,  Tenant  shall  cause  Tenant's  contractor  to obtain and
maintain builder's risk insurance in form, amounts and from carriers  reasonably
acceptable to Landlord, naming such contractor, Tenant, Landlord, and any Holder
as additional  insureds,  as their interests appear; (f) Tenant shall obtain and
furnish lien waivers from all mechanics,  materialmen  and laborers  involved in
the Tenant  Installations and Tenant hereby further agrees to indemnify and hold
Landlord  harmless from and against any and all  mechanics',  materialmen's  and
laborers'  liens  which  may be filed on the  basis  of any  work  performed  or
materials  supplied  in  connection  with such  Tenant  Installations;  (g) with
respect to such  Tenant  Installations,  Tenant  agrees to  protect,  indemnify,
defend and hold  Landlord  and its agents,  employees,  invitees  and  licensees
(including  all other  tenants  of the  Building  and their  respective  agents,
employees,  licensees and  invitees)  free and harmless from and against any and
all claims,  liens,  demands,  and causes of action of every kind and character,
including,  without limitation, the amounts of judgments,  penalties,  interest,
court costs and legal fees  incurred by Landlord in defense of same,  arising in
favor  of  any  third  person  (including  employees  of any  contractor  or any
subcontractor)  or Governmental  Authority on account of taxes,  claims,  liens,
debts,  personal injuries,  death or damage occurring or in any wise instant to,
whether direct or indirect,  or in connection with or arising out of such Tenant
Installations;  and (h) Tenant shall cause the construction to be performed in a
manner that will (i) occur either at times other than the Building Hours for the
Building as established in accordance with the Building  Regulations or at times
as otherwise approved in writing by Landlord;  and (ii) not interfere with other
tenants'  use and  occupancy  of the Building  and the Park,  as  determined  by
Landlord in Landlord's sole discretion.

         (b) Additional Final Working Drawing Requirements.  In the event Tenant
is in any  instance  after the  Commencement  Date  obligated  to furnish  Final
Working  Drawings,  then the following  provisions shall apply: (a) Tenant shall
prepare,  at Tenant's  expense,  Final Working Drawings for the applicable space
and shall  submit the same to Landlord for approval on or before the date within
thirty (30) days subsequent to the event requiring  preparation of Final Working
Drawings;  (b)  Landlord  shall have  fifteen  (15) days from its receipt of the
Final Working  Drawings to either approve them in writing or provide Tenant with
a request for specific  changes,  together with an  explanation  of the need for
such  changes;  (c) Tenant  shall  have  fifteen  (15) days from its  receipt of
Landlord's  written  request for changes in which to respond with revised  Final
Working  Drawings  incorporating   Landlord's   requirements  and/or  a  written
objection to making such changes on the grounds that Landlord's requirements are
unreasonable;  (d) Landlord  and Tenant will  diligently  work  together in good
faith to  resolve  any  differences  in the Final  Working  Drawings;  provided,
however,  Landlord shall have final  authority with respect to the Final Working
Drawings in the event,  in  Landlord's  reasonable  opinion,  Tenant's  proposed
Tenant Installations:  (i) threaten to weaken or impair the structural integrity
of the Building or the Leased  Premises or the leasehold  improvements  of other
tenants of the  Building;  (ii) will  increase  the risk of casualty  to, or the
rates of insurance coverages for, the Building; or (iii) are visible from either
the Common Areas or from the exterior of the Building.GENIUS PRODUCTS, INC.
                      2000 NON-QUALIFIED STOCK OPTION PLAN

1.  GENERAL PROVISIONS

         1.1  PURPOSE.
              -------

         The 2000 Non-Qualified Stock Option Plan (the "PLAN") is intended to
allow designated officers, directors, consultants and employees (all of whom are
sometimes collectively referred to herein as "Participants") of Genius Products,
Inc., a Nevada corporation ("GENIUS") and its Subsidiaries (as that term is
defined below) which it may have from time to time (Genius and such Subsidiaries
are referred to herein as the "COMPANY") to receive certain options ("STOCK
OPTIONS") to purchase Genius's common stock, one tenth of one cent ($0.001) par
value ("COMMON STOCK"). As used in this Plan, the term "SUBSIDIARY" shall mean
each corporation which is a "subsidiary corporation" of Genius within the
meaning of Section 424(f) of the Internal Revenue Code of 1986, as amended (the
"CODE"). The purpose of this Plan is to provide Participants with equity-based
compensation incentives to make significant and extraordinary contributions to
the long-term performance and growth of the Company.

         1.2      ADMINISTRATION.
                  --------------

         1.2.1 The Plan shall be administered by the Board of Directors of
Genius or by any committee appointed by the Board, hereinafter collectively
referred to as the "ADMINISTRATOR". The Administrator shall select one of its
members as Chairman and shall act by vote of a majority of a quorum, or by
unanimous written consent. A majority of its members shall constitute a quorum.
The Administrator shall be governed by the provisions of Genius's Bylaws and of
Nevada law applicable to the Board, except as otherwise provided herein or
determined by the Board.
<PAGE>

         1.2.2 The Administrator shall have full and complete authority, in its
discretion, but subject to the express provisions of the Plan: to approve the
Participants nominated by the management of the Company to be granted Stock
Options; to determine the number Stock Options to be granted to a Participant;
to determine the time or times at which Stock Options shall be granted; to
establish the terms and conditions upon which Stock Options may be exercised; to
remove or adjust any restrictions and conditions upon Stock Options; to specify,
at the time of grant, provisions relating to exercisability of Stock Options and
to accelerate or otherwise modify the exercisability of any Stock Options; and
to adopt such rules and regulations and to make all other determinations deemed
necessary or desirable for the administration of the Plan. All interpretations
and constructions of the Plan by the Administrator, and all of its actions
hereunder, shall be binding and conclusive on all persons for all purposes.

         1.2.3 The Company hereby agrees to indemnify and hold harmless each
Administrator and each employee of the Company, and the estate and heirs of such
Administrator or employee, against all claims, liabilities, expenses, penalties,
damages or other pecuniary losses, including legal fees, which such
Admininstrator or employee, his or her estate or heirs may suffer as a result of
his or her responsibilities, obligations or duties in connection with the Plan,
to the extent that insurance, if any, does not cover the payment of such items.
No member of the Administrator or the Board shall be liable for any action or
determination made in good faith with respect to the Plan or Stock Option
granted pursuant to the Plan.

         1.3      ELIGIBILITY AND PARTICIPATION.
                  -----------------------------

         Participants eligible under the Plan shall be approved by the
Administrator from those Participants who, in the opinion of the management of
the Company, are in positions which enable them to make significant and
extraordinary contributions to the performance and growth of the Company. In
selecting Participants to whom Stock Options may be granted, consideration shall
be to a variety of factors.

         A Participants eligibility to participate in the Plan shall terminate
(other than by reason of his or her death) on the date that the Participant (a)
if an employee, ceases to be employed by the Company, a parent of the Company or
a subsidiary of the Company, (b) if a director and not an employee, ceases to be
a member of the Company's Board of Directors, of (c) if a consultant, completes
or is terminated under the terms of the consulting agreement between the
consultant and the Company.

         The options of a Participant whose eligibility under the Plan has
terminated shall expire (a) three (3) years from the date that the Participant
(i) "Resigns for Good Reason" if so provided in the Participant's employment or
consulting agreement with the Company, if any, or (ii) is terminated without
cause or completes the object of the consulting agreement, (b) four (4) months
from the date Participant is terminated for cause or resigns from the Company or
resigns from or is voted off the Board of Directors, as the case may be, (c)
twelve (12) months from the date on which the Participant's eligibility ceases
because of any "Disability" if so provided in the Participant's employment
contract, if any, or d) upon the date the option expires by its terms.

<PAGE>

         If the Participant dies while eligible to participate in the Plan or
within four (4) months after the termination of his or her eligibility, the
Participant's executers or administrators or any persons who acquired the option
directly from the Participant by bequest or inheritance shall have the right to
exercise the Participant's option in accordance with its terms at any time
during the twelve (12) months immediately following Participant's death but only
in respect of the number of shares for which the right to exercise has vested at
the time of exercise.

         1.4  SHARES SUBJECT TO THE PLAN.
              --------------------------

         The maximum number of shares of Common Stock that may be issued
pursuant to the Plan shall be Five Million (5,000,000) subject to adjustment
pursuant to the provisions of paragraph 4.1. If shares of Common Stock awarded
or issued under the Plan are reacquired by the Company due to a forfeiture or
for any other reason, such shares shall be cancelled and thereafter shall again
be available for purposes of the Plan. If a Stock Option expires, terminates or
is cancelled for any reason without having been exercised in full, the shares of
Common Stock not purchased thereunder shall again be available for purposes of
the Plan.

         2.  PROVISIONS RELATING TO STOCK OPTIONS

         2.1      GRANTS OF STOCK OPTIONS.
                  -----------------------

         The Administrator may grant Stock Options in such amounts, at such
times, and to such Participants nominated by the management of the Company as
the Administrator, in its discretion, may determine. Stock Options shall be
designated non-statutory stock options by the Administrator on the date of
grant. Each Stock Option shall be evidenced by a written agreement (the "OPTION
AGREEMENT") in a form approved by the Administrator, which shall be executed on
behalf of the Company and by the Participant to whom the Stock Option is
granted, and which shall be subject to the terms and conditions of this Plan.
The holder of a Stock Option shall not be entitled to the privileges of stock
ownership as to any shares of Common Stock not actually issued to such holder.

         2.2      PURCHASE PRICE.
                  --------------

         The purchase price (the "EXERCISE PRICE") of shares of Common Stock
subject to each Stock Option ("OPTION SHARES") shall be fifty-four cents ($0.54)
per share. The Exercise Price was determined by adding a premium of 12.5% to
closing price of the Company's shares on May 24, 2000. The Administrator shall
have the authority to change the price of the Options at any time.

         2.3      OPTION PERIOD.
                  -------------

         The Stock Option period (the "TERM") shall commence on the date of
grant of the Stock Option and shall be three (3) years or such shorter period as
is determined by the Administrator. The Term for Stock Options shall be whatever
period, if any, is set by the Board. Each Stock Option shall provide that it is
exercisable over its term in such periodic installments as the Administrator in
its sole discretion may determine. Such provisions need not be uniform.
<PAGE>

         2.4      EXERCISE OF OPTIONS.
                  -------------------

         2.4.1 Each Stock Option may be exercised in whole or in part (but not
as to fractional shares) by delivering it for surrender or endorsement to the
Company, attention of the Corporate Secretary, at the principal office of the
Company, together with payment of the Exercise Price and an executed Notice and
Agreement of Exercise in the form prescribed by paragraph 2.4.2. Payment may be
made (i) in cash, (ii) by cashier's or certified check, (iii) by surrender of
owned shares of the Company's Common Stock valued pursuant to paragraph 2.2 (if
the Committee authorizes payment in stock in its discretion), (iv) by
withholding from the Option Shares which would otherwise be issuable upon the
exercise of the Stock Option that number of Option Shares equal to the exercise
price of the Stock Option, if such withholding is authorized by the Committee in
its discretion, in its discretion, (v) in the discretion of the Committee, by
the delivery to the Company of the optionee's promissory note secured by the
Option Shares, bearing interest at a rate sufficient to prevent the imputation
of interest under Sections 483 or 1274 of the Code, and having such other terms
and conditions as may be satisfactory to the Committee, or (vi) through a
cashless exercise program as established by Genius.

         2.4.2 Exercise of each Stock Option is conditioned upon the agreement
of the Participant to the terms and conditions of this Plan and of such Stock
Option as evidenced by the Participant's execution and delivery of a Notice and
Agreement of Exercise in a form to be determined by the Administrator in its
discretion. Such Notice and Agreement of Exercise shall set forth the agreement
of the Participant that: (a) no Option Shares will be sold or otherwise
distributed in violation of the the Act or any other applicable federal or state
securities laws, (b) each Option Share certificate may be imprinted with legends
reflecting any applicable federal and state securities law restrictions and
conditions, (c) the Company may comply with said securities law restrictions and
issue "stop transfer" instructions to its Transfer Agent and Registrar without
liability, (d) if the Participant is a Section 16 Reporting Person, the
Participant will furnish to the Company a copy of each Form 4 or Form 5 filed by
said Participant and will timely file all reports required under federal
securities laws, and (e) the Participant will report all sales of Option Shares
to the Company in writing on a form prescribed by the Company.

         2.4.3 No Stock Option shall be exercisable unless and until any
applicable registration or qualification requirements of federal and state
securities laws, and all other legal requirements, have been fully complied
with. The Company will use reasonable efforts to maintain the effectiveness of a
registration statement under the Securities Act for the issuance of Stock
Options and shares acquired thereunder, but there may be times when no such
registration statement will be currently effective. The exercise of Stock
Options may be temporarily suspended without liability to the Company during
times when no such registration statement is currently effective, or during
times when, in the reasonable opinion of the Administrator, such suspension is
necessary to preclude violation of any requirements of applicable law or
regulatory bodies having jurisdiction over the Company. If any Stock Option
would expire for any reason except the end of its term during such a suspension,
then if exercise of such Stock Option is duly tendered before its expiration,
such Stock Option shall be exercisable and exercised (unless the attempted
exercise is withdrawn) as of the first day after the end of such suspension. The
Company shall have no obligation to file any registration statement covering
resales of Option Shares.
<PAGE>

         2.5      RESTRICTIONS ON TRANSFER.
                  ------------------------

         Each Stock Option granted under this Plan shall be transferable only by
will or the laws of descent and distribution. No interest of any Participant
under the Plan shall be subject to attachment, execution, garnishment,
sequestration, the laws of bankruptcy or any other legal or equitable process.

         3.       MISCELLANEOUS PROVISIONS

         3.1      ADJUSTMENTS UPON CHANGE IN CAPITALIZATION.
                  -----------------------------------------

         3.1.1 The number and class of shares subject to each outstanding Stock
Option, the Exercise Price thereof (but not the total price), the maximum number
of Stock Options that may be granted under the Plan, the minimum number of
shares as to which a Stock Option may be exercised at any one time, shall be
proportionately adjusted in the event of any increase or decrease in the number
of the issued shares of Common Stock which results from a split-up or
consolidation of shares, payment of a stock dividend or dividends exceeding a
total of five percent (5%) for which the record dates occur in any one fiscal
year, a recapitalization (other than the conversion of convertible securities
according to their terms), a combination of shares or other like capital
adjustment, so that (i) upon exercise of the Stock Option, the Participant shall
receive the number and class of shares such Participant would have received had
such Participant been the holder of the number of shares of Common Stock for
which the Stock Option is being exercised upon the date of such change or
increase or decrease in the number of issued shares of the Company.

         3.1.2 Subject to any required shareholder action, if the Company shall
be the surviving corporation in any merger or consolidation, each outstanding
option shall pertain and apply to the sercurities that a holder of the number of
shares of Stock subject to the Option would have been entitled. The Company's
Board of Directors may grant each participant the right to exercise his or her
Stock Options in whole or in part immediately prior to the Company's dissolution
or liquidation, or merger or consolidation in which the corporation is not the
surviving corporation. If the Company is consolidated with or meged into any
other corporation, or if the Company sells or transfers all or substantially all
of its assets, or if any other similar event affecting shares of the Company
should occur, and if the exercisability of the Stock Options is not accelerated
by the Board of Directors and the acquiring company assumes the Company's
obligations under the options granted under the Plan, then each Participant
shall be entitled thereafter to purchase shares of stock and other secuirites
and property in the kind and amount, and at the price, which the Participant
would have been entitled to had his or her Stock Option been exercised prior to
such event. The Company shall make lawful provisions therefore as part of any
such tranasction.

         3.1.3 To the extent that the foregoing adjustments relate to stock or
securities of the Company, they shall be made by the Administrator, whose
determinations shall be final, binding and conclusive.
<PAGE>

         3.1.3 The grant of a Stock Option pursuant to the Plan shall not affect
in any way the Company's right or power to make adjustments, reclassifications,
reorganizations, or changes of its capital or business structure, or to merge or
to consolidate or to dissolve, liquidate or sell, or transfer all or any part of
its business or assets.

         3.2      WITHHOLDING TAXES.
                  -----------------

         The Company shall have the right at the time of exercise of any Stock
Option, to make adequate provision for any federal, state, local or foreign
taxes which it believes are or may be required by law to be withheld with
respect to such exercise ("TAX LIABILITY"), to ensure the payment of any such
Tax Liability. The Company may provide for the payment of any Tax Liability by
any of the following means or a combination of such means, as determined by the
Administrator in its sole and absolute discretion in the particular case: (i) by
requiring the Participant to tender a cash payment to the Company, (ii) by
withholding from the Option Shares which would otherwise be issuable upon
exercise of the Stock Option, that number of Option Shares having an aggregate
fair market value (determined in the manner prescribed by paragraph 2.2) as of
the date the withholding tax obligation arises in an amount which is equal to
the Participant's Tax Liability or (iii) by any other method deemed appropriate
by the Administrator. Satisfaction of the Tax Liability of a Section 16
Reporting Person may be made by the method of payment specified in clause (ii)
above only if the following two conditions are satisfied:

         (a) the withholding of Option Shares and the exercise of the related
Stock Option occur at least six months and one day following the date of grant
of such Stock Option; and

         (b) the withholding of Option Shares is made either (i) pursuant to an
irrevocable election ("WITHHOLDING ELECTION") made by such Participant at least
six months in advance of the withholding of Options Shares, or (ii) on a day
within a ten-day "window period" beginning on the third business day following
the date of release of the Company's quarterly or annual summary statement of
sales and earnings.

Anything herein to the contrary notwithstanding, a Withholding Election may be
disapproved by the Administrator at any time.

         3.3      AMENDMENTS AND TERMINATION.
                  --------------------------

         The Board of Directors may at any time suspend, amend or terminate this
Plan. No amendment or modification of this Plan may be adopted, which would: (a)
materially increase the benefits accruing to Participants under this Plan, (b)
materially increase the number of securities which may be issued under this Plan
(except for adjustments pursuant to paragraph 3.1 hereof), or (c) materially
modify the requirements as to eligibility for participation in the Plan. The
Board of Directors or the Administrator may modify, extend, or renew outstanding
options (to the extent not theretofore exercised) and authorize the granting or
new options in substitution therefore (to the extent theretofore exercised).
<PAGE>

         3.4      SUCCESSORS IN INTEREST.
                  ----------------------

         The provisions of this Plan and the actions of the Administrator shall
be binding upon all heirs, successors and assigns of the Company and of
Participants.

         3.5      OTHER DOCUMENTS.
                  ---------------

         All documents prepared, executed or delivered in connection with this
Plan (including, without limitation, Option Agreements) shall be, in substance
and form, as established and modified by the Administrator; provided, however,
that all such documents shall be subject in every respect to the provisions of
this Plan, and in the event of any conflict between the terms of any such
document and this Plan, the provisions of this Plan shall prevail.

         3.6      TERM OF PLAN.
                  ------------

         This Plan was adopted by the Board effective May 25, 2000. No Stock
Options or Awards may be granted under this Plan after May 25, 2003.

         3.7      GOVERNING LAW.
                  -------------

         This Plan shall be construed in accordance with, and governed by, the
laws of the State of Nevada.

         3.8      DIRECTOR APPROVAL/USE OF PROCEEDS.

         No Stock Option shall be exercisable, unless and until the Directors of
the Company have approved this Plan and all other legal requirements have been
fully complied with. The granting of an option shall impose no obligation upon
the Participant to exercise such option. The proceeds received by the Company
from the sale of the Stock pursuant to the Options under this Plan may be used
for general corporate purposes.

         3.9      ASSUMPTION AGREEMENTS.
                  ---------------------

         The Company will require each successor, (direct or indirect, whether
by purchase, merger, consolidation or otherwise), to all or substantially all of
the business or assets of the Company, prior to the consummation of each such
transaction, to assume and agree to perform the terms and provisions remaining
to be performed by the Company under this Stock Option and to preserve the
benefits to the Participants thereunder. Such assumption and agreement shall be
set forth in a written agreement in form and substance satisfactory to the
Administrator (an "ASSUMPTION AGREEMENT"), and shall include such adjustments,
if any, in the application of the provisions of the Stock Options and such
additional provisions, if any, as the Administrator shall require and approve,
in order to preserve such benefits to the Participants. Without limiting the
generality of the foregoing, the Administrator may require an Assumption
Agreement to include satisfactory undertakings by a successor:
<PAGE>

         (a) to provide liquidity to the Participants on the exercise of Stock
Options;

         (b) to require any future successor to enter into an Assumption
Agreement; and

         (c) to take or refrain from taking such other actions as the
Administrator may require and approve, in its discretion.

The Administrator referred to in this paragraph 3.12 is the Administrator
appointed by a Board of Directors in office prior to the succession then under
consideration.

         3.10     COMPLIANCE WITH RULE 16B-3.
                  --------------------------

         Transactions under the Plan are intended to comply with all applicable
conditions of Rule 16b-3. To the extent that any provision of the Plan or action
by the Administrator fails to so comply, it shall be deemed null and void, to
the extent permitted by law and deemed advisable by the Administrator.

         IN WITNESS WHEREOF, this Plan has been executed effective as of the
25th day of May, 2000.

GENIUS PRODUCTS, INC.

By:   /S/ KLAUS MOELLER
Klaus Moeller, Chief Executive Officer/Director

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