Document:

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COMMERCIAL LEASE

A140-10
R140-04

This lease is made between Condor Development Corp. herein called Lessor, and
Amedore Homes, Inc., herein called Lessee.

Lessee hereby offers to lease from Lessor the premises situated in the Town of
Guilderland, County of Albany, State of New York, described as Suite #110, upon
the following TERMS and CONDITIONS:

1. Term and Rent. Lessor demises the above premises for a term of five years,
commencing June 1, 2000, and terminating on May 31, 2005, or sooner as provided
herein at the annual rental of Twenty Four Thousand Four Hundred Eighty - and
00/100 - - - Dollars ($ 24,480.00 ), payable in equal installments in advance on
the first day of each month for that month's rental, during the term of this
lease. All rental payments shall be made to Lessor, at the address specified
above.

2. Use. Lessee shall use and occupy the premises for Office Space. The premises
shall be used for no other purpose. Lessor represents that the premises may
lawfully be used for such purpose.

3. Care and Maintenance of Premises. Lessee acknowledges that the premises are
in good order and repair, unless otherwise indicated herein. Lessee shall, at
his own expense and at all times, maintain the premises in good and safe
condition, including plate glass, electrical wiring, plumbing and heating
installations and any other system or equipment upon the premises and shall
surrender the same, at termination hereof, in as good condition as received,
normal wear and tear excepted. Lessee shall be responsible for all repairs
required, excepting the roof, exterior walls, structural foundations.

4. Alterations. Lessee shall not, without first obtaining the written consent of
Lessor, make any alternations, additions, or improvements, in, to or about the
premises.

5. Ordinances and Statutes. Lessee shall comply with all statutes, ordinances
and requirements of all municipal, state and federal authorities now in force,
or which may hereafter be in force, pertaining to the premises, occasioned by or
affecting the use thereof by Lessee.

6. Assignment and Subletting. Lessee shall not assign this lease or sublet any
portion of the premises without prior written consent of the Lessor, which shall
not be unreasonably withheld. Any such assignment or subletting without consent
shall be void and, at the option of the Lessor, may terminate this lease.

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7. Utilities. All applications and connections for necessary utility services on
the demised premises shall be made in the name of the Lessee only, and Lessee
shall be solely liable for utility charges as they become due, including those
for sewer, water gas, electricity, and telephone services.

8. Entry and Inspection. Lessee shall permit Lessor or Lessor's agents to enter
upon the premises at reasonable times and upon reasonable notice, for the
purpose of inspecting the same, and will permit Lessor at any time within sixty
(60) days prior to the expiration of this lease, to place upon the premises any
usual "To Let" or "For Lease" signs, and permit persons desiring to lease the
same to inspect the premises thereafter.

9. Possession. If Lessor is unable to deliver possession of the premises at the
commencement hereof, Lessor shall not be liable for any damage caused thereby,
nor shall this lease be void or voidable, but Lessee shall not be liable for any
rent until possession is delivered. Lessee may terminate this lease if
possession is not delivered within 30 days of the commencement of the term
hereof.

10. Indemnification of Lessor. Lessor shall not be liable for any change or
injury to Lessee, or any other person, or to any property, occurring on the
demised premises or any part thereof, and Lessee agrees to hold Lessor harmless
from any claims for damages, no matter how caused.

11. Insurance. Lessee, at his expense, shall maintain plate glass and public
liability insurance including bodily injury and property damage insuring Lessee
and Lessor with minimum coverage as follows:

Lessee shall provide Lessor with a Certificate of Insurance showing Lessor as
additional insured. The Certificate shall provide for a ten-day written notice
to Lessor in the event of cancellation or material change of coverage. To the
maximum extent permitted by insurance policies which may be owned by Lessor or
Lessee, Lessee and Lessor, for the benefit of each other, waive any and all
rights of subrogation which might otherwise exist.

12. Eminent Domain. If the premises or any part thereof or any estate therein,
or any other part of the building materially affecting Lessee's use of the
premises, shall be taken by eminent domain, this lease shall terminate on th
date when title vests pursuant to such taking. The rent, and any additional
rent, shall be apportioned as of the termination date, and any rent paid for any
period beyond that date shall be repaid to Lessee. Lessee shall not be entitled
to any part of the award for such taking or any payment in lieu thereof, but
Lessee may file a claim for any taking of fixtures and improvements owned by
Lessee, and for moving expenses.

13. Destruction of Premises. In the event of a partial destruction of the
premises during the term hereof, from any cause, Lessor shall forthwith repair
the same, provided that such repairs can be made within sixty (60) days under
existing governmental laws and regulations, but such partial destruction shall
not terminate this lease, except that Lessee shall be entitled to a
proportionate reduction of rent while such repairs are being made, based upon
the extent to which the making of such repairs shall interfere with the business
of Lessee on the premises. If such repairs cannot be made within said sixty (60)
days, Lessor, at his option, may make the same within a reasonable time, this
lease continuing in effect with the rent proportionately abated as aforesaid,
and in the event that Lessor shall not elect to make such repairs which cannot
be made within sixty (60) days, this lease may be terminated at the option of

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either party. In the event that the building in which the demised premises may
be situated is destroyed to an extent of not less than one-third of the
replacement costs thereof, Lessor may elect to terminate this lease whether the
demised premises be injured or not. A total destruction of the building in which
the premises may be situated shall terminate this lease.

14. Lessor's Remedies on Default. If Lessee defaults in the payment of rent, or
any additional rent, or defaults in the performance of any of the other
covenants or conditions hereof, Lessor may give Lessee notice of such default
and if Lessee does not cure any such default within 5 days, after the giving of
such notice (or if such other default is of such nature that it cannot be
completely cured within such period, if Lessee does not commence such curing
within such 5 days and thereafter proceed with reasonable diligence and in good
faith to cure such default), then Lessor may terminate this lease on not less
than 5 days' notice to Lessee. On the date specified in such notice the term of
this lease shall terminate, and Lessee shall then quit and surrender the
premises to Lessor, but Lessee shall remain liable as hereinafter provided. If
this lease shall have been so terminated by Lessor, Lessor may at any time
thereafter resume possession of the premises by any lawful means and remove
Lessee or other occupants and their effects. No failure to enforce any term
shall be deemed a waiver.

15. Security Deposit. Lessee shall deposit with Lessor on the signing of this
lease the sum of Two Thousand Forty and 00\100 Dollars ($2,040.00) as security
for the performance of Lessee's obligations under this lease, including without
limitation the surrender of possession of the premises to Lessor as herein
provided. If Lessor applies any part of the deposit to cure any default of
Lessee, Lessee shall on demand deposit with Lessor the amount so applied so that
Lessor shall have the full deposit on hand at all times during the term of this
lease.

16. Tax Increase. In the event there is any increase during any year of the term
of this lease in the City, County or State real estate taxes over and above the
amount of such taxes assessed for the tax year during which the term of this
lease commences, whether because of increased rate or valuation, Lessee shall
pay to Lessor upon presentation of paid tax bills an amount equal to 0% of the
increase in taxes upon the land and building in which the leased premises are
situated. In the event that such taxes are assessed for a tax year extending
beyond the term of the lease, the obligation of Lessee shall be proportionate to
the portion of the lease term included in such year.

17. Common Area Expenses. In the event the demised premises are situated in a
shopping center or in a commercial building in which there are common areas,
Lessee agrees to pay his pro-rata share of maintenance, taxes, and insurance for
the common area.

18. Attorney's Fees. In case suit should be brought for recovery of the
premises, or for any sum due hereunder, or because of any act which may arise
out of the possession of the premises, by either party, the prevailing party
shall be entitled to all costs incurred in connection with such action,
including a reasonable attorney's fee.

19. Waiver. No failure of Lessor to enforce any term hereof shall be deemed to
be a waiver.

20. Notices. Any notice which either party may or is required to give, shall be
given by mailing the same, postage prepaid, to Lessee at the premises, or Lessor
at the address specified above, or as such other places as may be designated by
the parties from time to time.

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21. Heirs, Assigns, Successors. This lease is binding upon and inures to the
benefit of the heirs, assigns and successors in interest to the parties.

22. Option to Renew. Provided that Lessee is not in default in the performance
of this lease, Lessee shall have the option to renew the lease for an additional
term of 60 months commencing at the expiration of the initial lease term. All of
the terms and conditions of the lease shall apply during the renewal term except
that the monthly rent shall be the sum of $______ (to be negotiated). The option
shall be exercised by written notice given to Lessor not less than 60 days prior
to the expiration of the initial lease term. If notice is not given in the
manner provided herein within the time specified, this option shall expire. If
notice is not given in the manner provided herein the time specified, this
option shall expire.

23. Subordination. This lease is and shall be subordinated to all existing and
future liens and encumbrances against the property.

24. Radon Gas Disclosure. As required by law, (Landlord) (Seller) makes the
following disclosure: "Radon Gas" is a naturally occurring radioactive gas that,
when it has accumulated in a building in sufficient quantities, may present
health risks to persons who are exposed to it over time. Levels of radon that
exceed federal and state guidelines have been found in buildings in n/a.
Additional information regarding radon and radon testing may be obtained from
your county public health unit.

25. Entire Agreement. The foregoing constitutes the entire agreement between the
parties and may be modified only by a writing signed by both parties. The
following Exhibits, if any, have been made a part of this lease before the
parties' execution hereof:

         Signed this 1st day of June, 2000.

By:   /s/ David DiGesare  Lessor            By: /s/ George Amedore  Lessee
      ------------------                        ------------------
          David DiGesare                            George Amedore<PAGE>

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED, HYPOTHECATED OR OTHERWISE DISPOSED
OF UNTIL A REGISTRATION STATEMENT WITH RESPECT THERETO IS DECLARED EFFECTIVE
UNDER SUCH ACT OR THE COMPANY RECEIVES AN OPINION OF COUNSEL TO THE COMPANY THAT
AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF SUCH ACT IS AVAILABLE.

                                   AZUREL LTD.
                                 Promissory Note

                                   $1,450,000

                  Amedore Homes, Inc., a New York corporation (the "Company")
for value received, hereby promises to pay to the order of George A. Amedore,
Sr. (the "Holder"), on demand (the "Due Date"), the principal sum of One million
four hundred-fifty thousand ($1,450,000) Dollars (or such lesser principal
amount as may then be outstanding). The principal amount of the Note may be
prepaid by the Company, in whole or in part, without premium or penalty, at any
time.

                  If the Company shall fail to make the payment of principal on
the Due Date; or shall make an assignment for the benefit of creditors, file a
petition in bankruptcy, be adjudicated insolvent or bankrupt, suffer an order
for relief under any federal bankruptcy law, petition or apply to any tribunal
for the appointment of a custodian, receiver or any trustee for the Company or
any substantial part of his assets or shall commence any proceeding under any
bankruptcy, reorganization, arrangement, readjustment of debt, dissolution or
liquidation law or statue of any jurisdiction, whether now or hereafter in
effect; or if there shall have been filed any such petition or application, or
any such proceeding shall have been commenced against the Company which remains
undismissed for a period of thirty (30) days or more; or if the Company, by any
act or omission shall indicate consent to, approve of or acquiescence in any
such petition, application or proceeding or the appointment of, a custodian,
receiver or any trustee for all or any substantial part of its properties, or if
the Company shall suffer such custodianship, receivership, or trusteeship to
continue undischarged for a period of thirty (30) days or more, or the Company
violates any term or provision of this Note and same remains uncured for a
period of 15 days after notice thereof, then and in any such event (each such
event, an "Event of Default"), the outstanding principal amount of this Note
shall be and become immediately due and payable.

         Payments of principal and premium, if any, are to be made in lawful
money of the United States of America at the principal office of the Company.

                  1.       Restrictions on Transfer.

         The Holder acknowledges that he has been advised by the Company that
this Note has not been registered under the Securities Act of 1933, as amended
(the "Securities Act"), that the Note is being issued, on the basis of the
statutory exemption provided by Section 4(2) of the Securities Act relating to
transactions by an issuer not involving any public offering. The Holder
acknowledges that he has been informed by the Company of, or is otherwise
familiar with, the nature of the limitations imposed by the Securities Act and
the rules and regulations thereunder on the transfer of securities. In
particular, the Holder agrees that no sale, assignment, hypothecation or
transfer of this Note shall be valid or effective, and the Company shall not be
required to give any effect to any such sale, assignment, hypothecation or
transfer, unless (i) the sale, assignment, hypothecation or transfer of the Note
is registered under the Securities Act, and the Company has no obligation or
intention to so register the Note, or (ii) the Note is sold, assigned,
hypothecated or transferred in accordance with the requirements and limitations
of Rule 144 under the Securities Act, or such sale, assignment, or transfer is
otherwise exempt from registration under the Securities Act.

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                  2.       Covenants of Company.

         The Company covenants and agrees that so long as this Note shall be
outstanding, it will:

                  Promptly pay and discharge all lawful taxes assessments and
governmental charges or levies imposed upon the Company or upon its income and
profits, or upon any of its property, before the same shall become in default,
as well as all lawful claims for labor, materials and supplies which, if unpaid,
might become a lien or charge upon such properties or any part thereof;
provided, however, that the Company shall not be required to pay and discharge
any such tax, assessment, charge, levy or claim so long as the validity thereof
shall be contested in good faith by appropriate proceedings, and the Company
shall set aside on its books adequate reserves with respect to any such tax,
assessment, charge, levy or claim so contested.

                  Do or cause to be done all things necessary to preserve and
keep in full force and effect its corporate existence, rights and franchises and
comply with all laws applicable to the Company as its counsel may advise;

                  At all times maintain, preserve, protect and keep its property
used and useful in the conduct of its business in good repair, working order and
conditions, and from time to time make all needful and proper repairs, renewals
, replacements, betterment and improvements thereto, so that the business
carried on in connection therewith may be properly and advantageously conducted
at all times;

                  Keep adequately insured by financially sound insurers, all
property of a character usually insured by similar corporations and carry such
other insurance as is usually carried by similar corporations; and

                  At all times keep true and correct books, records and
accounts.

                  3.       Miscellaneous.

                  3.1      All the covenants and agreements made by the Company
in this Note shall bind its successors and assigns.

                  3.2      No course of dealing between the Company and the
holder hereof shall operate as a waiver of any right of any holder hereof, and
no delay on the part of the Holder in exercising any right hereunder shall so
operate. Any such waiver must be in writing and signed by the Holder and the
Company.

                  3.3      This Note may be amended only by a written instrument
executed by the Company and the Holder hereof. Any amendment shall be endorsed
upon this Note, and all future holders shall be bound thereby.

                  3.4      All communications provided or herein shall be sent,
except as may be otherwise specifically provided, by registered or certified
mail: if to the Holder, to the address shown on the books of the Company; and if
to the Company, to: Amedore Homes, Inc. 1400 Dunnsville Road, Schenectady, New
York 12306, Attention: Chief Executive Officer, or to such other address as the
Company may advise the Holder in writing. Notices shall be deemed given when
mailed.

                  3.5      All agreements between the Company and the Holder
expressly are limited so that in no event whatsoever shall the amount paid or
agreed to be paid by the Company to the Holder hereunder exceed the higher
lawful contractual rate of interest permissible under the law which a court of
competent jurisdiction, by a final order which is not appealed or is
nonappealable, determines is applicable to this Note. If fulfillment of any
provision of this Note at the time performance of such provision becomes due
involves exceeding such highest lawful contractual rate, then such obligation
shall be reduced to such highest lawful contractual rate. If by any circumstance
the Holder shall ever receive as interest an amount which exceeds such highest
lawful contractual rate, any amount which may be deemed excessive interest shall
be applied as payment of the principal of the indebtedness evidenced hereby and
not as payment of interest. The terms and provision of this paragraph shall
control all other terms and provisions contained in this Note.

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                  3.6      The provisions of this Note shall in all respects be
construed according to, and the rights and liabilities of the parties hereto
shall in all respects be governed by, the laws of the State of New York. This
Note shall be deemed a contract made under the laws of the State of New York and
the validity of this Note and all rights and liabilities hereunder shall be
determined under the laws of said State.

                  3.7      In the event that this Note is placed in the hands of
an attorney for collection, or in the event that any action be instituted on
this Note, or any action is taken with respect to a default hereunder, the
holder hereof shall be entitled to the payment by the Company and other party
liable for the obligations of the Company hereunder of all expenses in
connection therewith, including, without limitation, reasonable attorney fees.

                  3.8      The headings of the Sections of this Note are
inserted for convenience only and shall not be deemed to constitute a part of
this Note.

                  IN WITNESS WHEREOF, AMEDORE HOMES, INC., has caused this Note
to be executed in its corporate name by its Executive Vice President, and its
seal to be affixed hereto.

Dated:    February 29, 2000

                                         AMEDORE HOMES, INC.

                                         By: /s/ George A. Amedore, Jr.
                                             --------------------------
                                         George A. Amedore, Jr.
                                         Executive Vice President

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