Document:

STATE OF SOUTH CAROLINA    )                                      EXHIBIT 10.1
                           )            LEASE AGREEMENT
COUNTY OF CHARLESTON       )

         THIS LEASE  AGREEMENT is made and entered into on this __2nd____ day of
JUNE,  2000,  by and between  SMD  PROPERTIES,  (hereinafter  referred to as the
"Landlord") and CHARLESTON GOLD AND DIAMOND EXCHANGE, INC. (hereinafter referred
to as the "Tenant").

                              W I T N E S S E T H:

         1.       Premises.  The Landlord  hereby Leases to the Tenant,  and the
Tenant  hereby  Leases from the Landlord,  the premises of  approximately  9,750
square  feet  identified  as (the  "Premises")  of 975  Pinehollow  Road,  Mount
Pleasant,  SC 29464, (the "Building") and being more  particularly  described in
and shown on the floor plan as "A-1" attached hereto and made a part hereof. The
total  rentable  area of the Premises is  stipulated  to be the number above and
shall be adjusted only by the Landlord as necessary to reflect actual changes in
the Premises or Building.  The building  shall be built per the following  plans
and specifications that are incorporated, herein by reference:

   1)  Earthsource Engineering, SITE, CIVIL, & LANDSCAPE DRAWINGS
       Job Number: 99-153, Final Approval 12-22-99
   2)  McKellar & Associates Architects, Architectural Drawings
       Project Number: 99021.07, Final Approval 11-15-1999, A101 DATED 04-28-00:
   3)  Devita & Associates, Structural, Electrical, Mechanical & Plumbing
       Project Number: 99081, Final Approval 11-3-99

         TO HAVE  AND TO  HOLD  THE  Premises  upon  the  terms  and  conditions
hereinafter set forth.

         2.       Term.  The term  ("Term") of this Lease shall begin  August 1,
2000 or as soon  thereafter as Landlord  delivers  possession of the Premises to
Tenant,  or upon final  completion  and  approval by Town of Mt.  Pleasant  (the
"Commencement  Date") and end at midnight on August 31, 2005  thereafter  unless
sooner  terminated  in  accordance  with the terms  hereof.  The Tenant shall be
granted two (2) five-year  (5) options to renew the lease with rental  increases
of (3%) three percent yearly.

         3.       Possession.  If for  any  reason  Landlord  fails  to  deliver
possession of the Premises on or before the specified  Commencement  Date,  this
Lease  shall  remain in full  force and effect  and the  Landlord  shall have no
liability for delay, but Base Rent and Additional Rent, ("Rent"), and Lease Term
shall not commence until the later of the date Landlord  delivers  possession of
the Premises to the Tenant or date of final  completion and approval of the Town
of Mt. Pleasant.

         4.       Base  Rent.  The  Tenant  shall  pay to the  Landlord  without
deduction,  set off, prior notice or demand, Base Rent ("Base Rent") as follows:
Year One:  $14,421.88 per month; or $173,062.50 per year, with rental  increases
of (3%) three percent each year calculated from the from the previous year.

                  All  Base  Rent  is  payable  in  advance  in  equal   monthly
installments,  on the first day of each and every calendar month during the Term
hereof. All Base Rent payments shall be made to SMD PROPERTIES, 960 BERRY SHOALS
ROAD,  DUNCAN,  S. C. 29334 or at such other place as the Landlord may designate
in writing to Tenant. If the Commencement Date of this Lease is a day other than
the first day of the month,  Base Rent for the first month shall be prorated and
paid with the first regular monthly  installment.  Any Base Rent hereunder which
is not  received  by the fifth,  (5th),  day of each month shall be subject to a
delinquency  charge of the  greater of either one and one half (1 1/2%)  percent
per month on the unpaid balance,  accruing from the first day of every month for
which Base Rent is due or the sum of One Hundred Dollars,  ($100.00), so long as
the  amount  does  not  exceed  the  amount  allowed  by  applicable  law.  Said
delinquency charge shall be in addition to the default provisions herein.

<PAGE>

         5.       Security Deposit. Tenant shall deposit the sum of TWENTY EIGHT
THOUSAND EIGHT HUNDRED FORTY THREE DOLLARS AND  SEVENTY-SIX  CENTS  ($28,843.76)
with Landlord upon execution of this Lease as security for the full  performance
of all of the provisions of this Lease on its part (the "Security Deposit").  If
at any time during the Term of this Lease, Tenant shall be in default, Landlord,
without  limitation of any other right or remedy which may apply because of such
default,  may (i) apply all or part of the  Security  Deposit for the payment of
Rent in default;  and/or (ii) appropriate all or part of the Security Deposit to
cure the default,  including,  but not limited to, the  defraying of any and all
reasonable and necessary expenses incurred by Landlord in recovering  possession
of the Premises upon  termination  of this Lease.  To the extent that all or any
portion of the Security Deposit is thus applied or appropriated by the Landlord,
and if this  Lease is not  terminated  as a result of the  default,  Tenant,  at
Landlord's  request and as a condition to the  continuance of this Lease,  shall
pay to the Landlord,  within ten (10) days of request by the Landlord, an amount
sufficient to place in the Landlord's hands the amount of the original  Security
Deposit,  taking into  account the  portion,  if any, of the  adjusted  original
Security  Deposit  as may not have been  applied  or  expended  by  Landlord  in
accordance herewith.

                  Landlord may retain the Security  Deposit in a general account
with other  funds.  Tenant  shall not be entitled  to  interest on the  Security
Deposit. If Tenant is not in default at the termination of this Lease,  Landlord
shall return the  Security  Deposit (or the portion that has not been applied or
appropriated in accordance herewith) to the Tenant within thirty days (30) after
the termination date of this Lease.

         6.       Use. The Tenant  shall use and occupy the  Premises  solely as
general  office  and retail  space and for no other  purpose  without  the prior
written  consent of Landlord.  Tenant  shall  comply with all laws,  ordinances,
orders,  or regulations of any lawful  authority  having  jurisdiction  over the
Premises  and the use  thereof.  Tenant shall not at any time leave the Premises
vacant, but shall in good faith  continuously  throughout the Term of this Lease
conduct and carry on in the entire  Premises  the type of business for which the
Premises are Leased.

                  Tenant shall not permit any  objectionable or unpleasant odors
to  emanate  from the  Premises;  nor place or  permit  any  radio,  television,
loudspeaker or amplifier,  on the roof or outside the Premises or where the same
can be seen or heard from outside the Premises; nor place any antenna, awning or
other projection on the exterior of the Premises; or take any action which would
constitute a nuisance or would disturb or endanger other Tenants of the Building
or  unreasonably  interfere  with the use of their  respective  Premises;  or do
anything which would tend to injure the reputation of the Building.

                  Tenant expressly acknowledges that it is its responsibility to
obtain  a  business  license  from  the  Town  of  Mount  Pleasant,  SC.  Tenant
represents,  warrants and covenants to Landlord throughout the term of the Lease
as follows:

                  (a)  Tenant is and  agrees to  remain in  compliance  with all
applicable  federal,  state and local laws  relating to protection of the public
health,  welfare,  and the  environment  ("environmental  laws") with respect to
Tenant's use and  occupancy of the  Premises.  Tenant agrees to cause all of its
employees,  agents,  contractors,  sublessees,  assignees, and any other persons
occupying  or  present  on  the  Premises   ("occupants")  to  comply  with  all
environmental laws applicable to their activities in and around the Premises.

                  (b) Tenant shall not bring into the Building or the  Premises,
nor shall it allow any occupant to bring into the Premises, any chemical,  waste
material  or other  substance  that is defined or  otherwise  classified  in any
environmental laws as a "hazardous substance",  "hazardous material", "hazardous
waste", "toxic substance", or "toxic pollutant",  except for small quantities of
any such substances  that are consistent  with ordinary use of the Premises.  If
any quantity of any such  substance is brought into the building or the Premises
by Tenant or occupants for ordinary use, Tenant or occupants shall handle,  use,
and  dispose  of such  substance  in a  reasonable  and  prudent  manner  and in
compliance with all applicable environmental laws.

<PAGE>

                  (c) Landlord or its representative may inspect the Premises at
reasonable  times,  upon prior notice to Tenant,  to insure  compliance with the
requirements  of this  paragraph.  As part of its  inspection,  Landlord  or its
representative  may take such samples as Landlord in its sole  discretion  deems
necessary,  including without  limitation,  samples of substances located on the
Premises,  and neither Landlord nor any representative  shall have any liability
to  Tenant  as a  result  of  such  sampling  activity.  In the  event  Landlord
determines that Tenant  possesses any substances in violation of this paragraph,
Landlord  shall  notify  Tenant  and  Tenant  shall  immediately   remove  those
substances in compliance with all applicable laws, rules, ordinances,  standards
and regulations.  In the event that Tenant fails to comply with the requirements
of this  paragraph,  Landlord or its  representative  may enter the Premises and
provide for the removal and  disposal  of those  substances  as Tenant's  agent.
Tenant agrees to remain responsible for the substances and to indemnify, defend,
hold harmless,  and protect Landlord and any  representative of Landlord against
all costs,  fines,  penalties,  or damages  incurred  by  Landlord or its agent,
representative or property manager due to any activities by Landlord pursuant to
this paragraph, except in the event of Landlord's negligence. Tenant agrees that
no adequate remedy exist at law to enforce this paragraph and that damages would
not make Landlord whole;  accordingly,  Tenant agrees that Landlord may seek and
obtain injunctive relief to enforce this paragraph.

                  Tenant  shall not  place a load on any  floor in the  Premises
exceeding  the floor load such floor was  designed  to carry.  Tenant  shall not
install,  operate or maintain any heavy  equipment  in the Premises  except in a
manner  that  properly  distributes  weight.  Landlord  agrees  that  it is  the
Landlord's  responsibility  to ensure that the floor under the safe meets proper
load standards and acknowledges that the safe will be installed on the Premises.

         7.       Substituted Premises.  Intentionally Deleted.

         8.       Assignment or Sublet. Tenant shall not transfer or assign this
Lease or sublet  the  demised  Premises  without  the prior  written  consent of
Landlord  (not to be  unreasonably  withheld)  and any attempt to do so shall be
void and confer no rights upon any third person.  The consent by Landlord to any
transfer,  assignment or subletting  shall not be deemed a waiver by Landlord of
any prohibition against any future transfer, assignment or subletting.  Further,
in the event that Tenant  request the  Landlord's  consent to an  assignment  or
sublease of fifty percent or more of the Premises,  the Landlord  shall have the
option to release the Tenant of its  obligations  hereunder and  accelerate  the
expiration of the term hereof,  and Landlord may  subsequently  enter into a new
lease  agreement  directly  with any such tenant.  Consent to one  assignment or
sublease  shall  not  constitute  a waiver of this  provision  with  respect  to
subsequent transactions.  Each subtenant or assignee shall be liable to Landlord
for all obligations of the Tenant hereunder, but the Tenant shall not be thereby
relieved of such obligations unless Landlord has exercised its option to release
Tenant and accelerate  expiration of the Term hereof, so that Landlord can enter
into a new lease  agreement  with a new tenant.  In such case,  Tenant  shall be
relieved of any further  obligation under the Lease. The Landlord shall have the
right in its absolute and sole discretion to withhold consent to any sublease or
assignment  if Tenant  shall be in  default  or  breach of this  Lease or if the
proposed  assignee or sublessee or its business will cause Landlord to incur any
cost of whatever kind or nature.

                  Any   transfer   of  this   Lease   from   Tenant  by  merger,
consolidation,  liquidation, or otherwise by operation of law shall be deemed to
constitute  an  assignment  for the  purpose  of this  Lease.  In the event of a
purported subletting of all or any part of said Premises or purported assignment
of this Lease, it is mutually agreed that Tenant will nevertheless  remain fully
and primarily liable under the terms, covenants and conditions of this Lease. At
Landlord's   election,   Landlord  may  consider  any  purported  subletting  or
assignment a default and elect any remedies  provided  herein.  If this Lease is
assigned or if the  Premises  or any part  thereof be  subleased  or occupied by
anybody  other  than  Tenant  in  contravention  of this  Lease,  Landlord  may,
nevertheless,  collect from the assignee, sublessee or occupant any rent payable
by  Tenant  under  this  Lease and apply the  amount  collected  to rent  herein
reserved,  but such  election  will not be deemed an acceptance of the assignee,
sublessee or occupant as Tenant nor a release of Tenant from  performance  under
this Lease.

<PAGE>

                  If Tenant of this Lease is a  corporation,  and if at any time
during the term of this Lease the  person or persons  owning a majority  of such
corporation's  voting shares on the date hereof shall cease to own a majority of
such  shares  whether  due to  sale,  assignment,  operation  of  law  or  other
disposition,  Tenant will so notify  Landlord and Landlord shall have the right,
at its option,  to terminate  this Lease by notice to Tenant given within thirty
days following receipt of such notice. This provision shall not be applicable to
Tenant if all of the outstanding voting stock of such corporation is listed on a
national  securities exchange as defined in the Securities Exchange Act of 1934,
as amended.

         9.       Condition of Premises. Landlord agrees that the Premises shall
be completed and finished according to the specifications described in Paragraph
1 and incorporated herein by reference. Landlord agrees to paint the interior of
Premises  in a color to be chosen by the Tenant and  approved  by the  Landlord.
Landlord  shall install  carpeting and light bulbs within the Premises  prior to
occupancy.  Except as provided in the specifications,  Landlord hereby disclaims
any express or implied warranties as to the Premises including,  but not limited
to any implied warranty of merchantability or fitness for a particular purpose.

         10.      Americans  With   Disabilities   Act.  Landlord  warrants  and
represents that the Premises shall be built to comply with current  standards of
the American with  Disabilities  Act of 1990.  The parties hereby agree that the
Premises  may be  subject  to the terms and  conditions  of the  Americans  With
Disabilities Act of 1990 (hereinafter the "ADA").  The parties further agree and
acknowledge  that it shall be the sole  responsibility  of the  Tenant to comply
with any and all  provisions of the ADA, as such  compliance  may be required to
operate  the  Premises.  The Tenant  further  agrees to  indemnify  and hold the
Landlord  harmless against any claims which may arise out of Tenant's failure to
comply with the ADA, such indemnification  shall include, but not necessarily be
limited to, reasonable attorneys' fees, court costs and judgments as a result of
said  claims,  except for such claims  arising  out of the  Building as built by
Landlord.  Within ten days after  receipt,  Tenant  shall advise the Landlord in
writing and provide the Landlord with copies of any notices alleged in violation
of ADA  relating  to any  portion of the  demised  Premises,  any claims made or
threatened in writing regarding  non-compliance with the ADA and relating to any
portion  of  the  Premises  or  any   governmental  or  regulatory   actions  or
investigations  instituted or threatened  regarding  non-compliance with the ADA
and relating to any portion of the Premises.

         11.      Improvements. All improvements,  alterations, and additions to
the Premises  desired by Tenant shall be made at Tenant's  expense,  in good and
workmanlike  manner and in accordance with plans and  specifications  which have
been  previously   approved  in  writing  by  Landlord.   If  the  improvements,
alterations,  or additions are to be made by a contractor other than Landlord's,
Landlord reserves the right to approve such contractor, which approval shall not
be unreasonably withheld, and to require adequate lien waivers,  bonds, permits,
licenses,  and  insurance.  Tenant shall  indemnify and hold  Landlord  harmless
against any loss,  liability or damage  resulting  from such work by the Tenant.
All  improvements  and  additions  made by the Tenant  attached to the Premises,
including without limitation all partitions,  carpets, lighting fixtures, doors,
hardware,  shelves,  cabinets,  safe, and ceilings, shall remain in the Premises
and shall be surrendered to Landlord at the expiration or earlier termination of
this Lease unless Landlord  requests their removal in which event,  Tenant shall
remove the same and restore the Premises to its  original  condition at Tenant's
expense. Tenant shall specifically have the right to remove modular systems that
may be attached  to walls or floors so long as Tenant  repairs any damage to the
walls or floors caused by installation or removal of any such item. If by reason
of any  alteration,  repair,  labor  performed  or  materials  furnished  to the
Premises  for or on behalf of  Tenant,  any  mechanic's  or other  lien shall be
filed, claimed,  perfected or otherwise established against the Premises, Tenant
shall  discharge or remove the lien by bonding or otherwise  within fifteen (15)
days  after the same is filed.  If Tenant  fails to cause such lien or notice of
lien to be  discharged  within  such  period,  Landlord  may,  but  shall not be
obligated to,  discharge the same either by paying the amount  claimed to be due
or by procuring  the  discharge of such lien by deposit,  bond, or otherwise and
Tenant shall reimburse Landlord for such amounts upon demand.

         12.      Utilities  and  Services.  Landlord  shall,  during  the  Term
hereof,  furnish  Tenant,  without  charge:  reasonable  quantities  of water to
lavatories in or  appurtenant  to the Premises.  Landlord shall contract for and
pay for  installation of heating,  cooling and electric systems for the Premises
including  lighting  and small  business  machine  purposes  only,  such as word
processors,  personal computers,  electric typewriters and calculators, with all
applicable  federal and state regulations.  Janitorial  services for cleaning of
the Premises shall be provided by the Tenant.  Tenant shall furnish,  at its own
expense  and without  damage or threat of damage to the  Premises or any part of
the Building,  any  utilities or services  required for its use of the Premises,
including,  but not  limited to,  telephone  service  and  electrical  power and
connections for electronic  data  processing  equipment and other large business
equipment.

<PAGE>

         13.      Repairs by  Landlord.  Upon  reasonable  notice  from  Tenant,
Landlord shall make necessary repairs to: (1) roof; (2) foundation; (3) exterior
wall;  (4) any load  bearing  interior  walls of the  Premises;  (5) below grade
plumbing  lines;  and (6)  replacement  of the components of the heating and air
conditioning  equipment that services the Premises if  necessitated  by ordinary
wear and tear,  provided  that said repairs  shall not be  occasioned by fire or
other casualties as contemplated in paragraph 20 herein, however, Landlord shall
not be  required to repair  windows,  plate  glass,  doors or any  fixtures  and
appurtenances  composed  of glass or any  damage  caused  by any act,  omission,
misuse or negligence of Tenant,  Tenant's  agents or Tenant's  invitees.  Tenant
shall  keep  the  Premises  in  good,  clean  and  habitable  condition.  At the
expiration of the Lease,  Tenant shall surrender the Premises in good condition,
excepting reasonable wear and tear.

         14.      Rubbish.  Tenant shall take good care of the Premises and keep
the same free from waste at all times.  Tenant shall store all trash and garbage
within the Premises, arranging for the regular pick up of such trash and garbage
at  Landlord's  expense.  Receiving  and delivery of goods and  merchandise  and
removal  of  garbage  and  trash  shall be made  only in the  manner  and  areas
prescribed by Landlord. Tenant shall not operate an incinerator or burn trash or
garbage within the Premises or any Common Area.

         15.      Signs;  Displays.  Tenant shall not, without  Landlord's prior
written  consent,  (a) install any exterior  lighting,  decorations,  paintings,
awnings, canopies, or the like or (b) erect or install any signs, window or door
lettering,  placards, decorations and advertising media of any type which can be
viewed  from the  exterior  of the  Premises.  All signs,  placards,  lettering,
decorations,  and  advertising  media shall  conform in all respects to the sign
criteria  established  by  Landlord  for the  building  from time to time in the
exercise  of its sole  discretion  and shall be  subject  to the  prior  written
approval of Landlord as to  construction,  method of  attachment,  size,  shape,
height, lighting, color, and general appearance. All signs shall be kept in good
condition and in proper operating order at all times.

                  Tenant shall remove any such signs,  lettering,  placards,  or
decorations  at the  expiration or earlier  termination of this Lease and repair
any damage to the Premises and/or building caused by the installation or removal
of same.

         16.      Property  of Tenant.  Tenant  may,  and at the  expiration  or
earlier  termination hereof shall,  remove all furniture,  equipment,  and other
personal  property  which  Tenant  shall have  placed in the  Premises or on the
exterior  thereof;  provided that Tenant shall repair any damage to the Premises
caused by the  installation  or removal of the same.  All such  property  shall,
during the Term hereof,  be at the risk of the Tenant only,  and Landlord  shall
not be liable for any loss thereof or damage  thereto  resulting  from any cause
whatsoever;  and each policy of insurance covering such property shall contain a
standard waiver of subrogation endorsement. Any such property not removed at the
expiration or earlier  termination  of this Lease shall be deemed  abandoned and
may be disposed of by the Landlord in any manner whatsoever. Landlord shall have
the right to deduct any costs and expenses  incurred by Landlord in disposing of
Tenant's  property  from the security  deposit.  In the event that the costs and
expenses incurred by Landlord exceed the balance of the security deposit, Tenant
shall reimburse Landlord for the discrepancy between the balance of the security
deposit and the actual costs and expenses incurred by the Landlord.

         17.      Landlord's  Liability.  Landlord  shall not be  responsible or
liable for and Tenant hereby  expressly  waives all claims against  Landlord for
injury to persons or damage to Tenant's property resulting from:

                  (i)      Water,  snow or ice being upon or coming  through the
                           roof, walls, windows or otherwise;

                  (ii)     Wind, water or flooding;

                  (iii)    Any act,  omission or  negligence  of  co-tenants  or
                           other persons or occupants of the Building;

                  (iv)     The acts of any owners or  occupants  of adjoining or
                           contiguous property; or

                  (v)      Failure of the electrical  system, the heating or air
                           conditioning   systems,  or  the  plumbing  or  sewer
                           systems,

<PAGE>

                  Landlord shall not be liable for any damage  occasioned by its
failure to keep the Premises in repair unless Landlord is obligated to make such
repairs  under the terms  hereof,  notice of the need for such  repairs has been
given  Landlord,  a reasonable  time has elapsed and Landlord has failed to make
such  repairs.  Notwithstanding  the  above,  Tenant  does not waive all  claims
against Landlord for injury to persons or damage to Tenants  property  resulting
from (I) - (v) above,  when such a damage is due to  Landlord's  failure to keep
Premises  under repair or acts,  omission or negligence of Landlord's  agents or
employees.

         18.      Additional Rent, Taxes and Insurance.  In addition to the Base
Rent  provided  for in  Paragraph  Four  (4)  herein,  Tenant  shall  pay to the
Landlord,  as Additional  Rent, its pro-rata share of all increases in insurance
(liability,  fire and extended  coverage  insurance carried by Landlord insuring
the  Building)  and real estate taxes  assessed on the Building  and/or the land
upon which the Building is located. Such payment shall be due and payable thirty
(30) days after a statement  thereof is rendered to Tenant by Landlord.  If said
Additional  Rent is not  received  by Landlord a  delinquency  charge of one and
one-half (1 1/2%)  percent per month shall accrue on the unpaid  amount from the
due date until  paid.  The term "real  estate  taxes"  shall  include any taxes,
assessments,  levies or  charges  assessed  or  imposed  on the land  and/or the
Building  of  which  the  Premises  forms a part.  Tenant  shall  pay  prior  to
delinquency all personal  property taxes and assessments of every kind or nature
imposed or assessed upon or with respect to  furnishings,  fixtures,  equipment,
and other  property  of Tenant  placed on the  Premises.  For  purposes  hereof,
Tenant's  pro-rata  share of the above  items  shall be based upon the number of
square feet  comprising  the Building.  Landlord  shall,  during the entire Term
hereof, maintain in force, casualty insurance on its interest in the Premises in
such amounts and against such hazards and  contingencies  as Landlord shall deem
desirable  for its own  protection;  provided,  however,  Landlord  shall not be
obligated to insure any furniture,  equipment,  or other property  placed in the
Premises by or at the expense of Tenant.  Tenant shall not permit any use of the
Premises that would invalidate or conflict with the known terms of any insurance
policy covering risks insured by Landlord,  and Tenant shall pay the cost of any
premium amounts above standard rates for such insurance occasioned by the nature
of Tenant's use of the Premises.

         19.      Public Liability Insurance. Tenant shall obtain and maintain a
comprehensive  policy of liability insurance with respect to the Premises naming
Landlord  and any  designee  of Landlord as  additional  insured and  protecting
Landlord, Tenant and any designee of Landlord against any liability which arises
from any occurrence on or about the Premises or any  appurtenances  thereof,  or
any of the  claims  against  which  Tenant is  required  to  indemnify  Landlord
pursuant to this Lease.  Such policy shall be written by a company  satisfactory
to  Landlord.  The  coverage  limits  shall be at  least  One  Million  Dollars,
($1,000,000.),  with respect to combined single limits of bodily injury or death
per  occurrence,  One Million  Dollars,  ($1,000,000.),  with  respect to bodily
injury or death of more than one person in any one  occurrence and at least Five
Hundred Thousand Dollars,  ($500,000.) for property damage per occurrence.  Said
policy(ies)  must contain a provision  that they will not be canceled or changed
without  first giving  Landlord  thirty (30) days prior written  notice.  Tenant
shall provide Certificate of Insurance to Landlord prior to taking possession of
the  Premises.  Each policy of insurance  Tenant is required to carry under this
Lease shall contain a waiver of subrogation  against  Landlord and Tenant hereby
waives all  rights of  recovery  or causes of action  against  Landlord  for any
damage or injury  covered  by  Tenant's  insurance  or by the type of  insurance
required of Tenant by this Lease.

         20.      Damage or Destruction by Casualty.  If the Premises are wholly
or partially  destroyed by fire or other  casualty,  Landlord  shall, at its own
expense,  promptly restore the Premises to  substantially  the same condition as
existed  when Tenant took  possession  of the  Premises,  unless said damage was
caused by Tenant, its agents,  licensees,  employees,  invitees, or visitors, in
which case any repair shall be at Tenant's expense; provided,  however, Landlord
may by notice to Tenant  within sixty (60) days after the date of such damage or
destruction  elect,  at its option,  not to restore or repair the  Premises  and
Landlord  or Tenant may  thereafter,  at its option,  cancel this Lease.  If the
Premises  cannot be restored  within ninety (90) days of the date of such damage
or  destruction,  either Landlord or Tenant shall have the option to cancel this
Lease with written notice thereof to the other party within said period.

                  If all or any  portion of the  Premises  is damaged by fire or
other casualty  insurable under a standard fire insurance policy with a standard
extended coverage  endorsement,  not caused by the fault or neglect of Tenant or
Tenant's agents,  and this Lease is not terminated  pursuant to any provision of
this Lease, the following shall apply: from the date of the occurrence until the
Premises, or the portion thereof which is damaged, is rebuilt or repaired,  Base
Rent and  Additional  Rent shall  abate in the  proportion  that the area of the
portion of the Premises  rendered unusable for the permitted use hereunder bears
to the entire area of the Premises.  If the fire or other  casualty is caused by
the fault or neglect of Tenant or Tenant's agents, Base Rent shall not abate.

         21.      Eminent Domain. If the whole of the Premises,  or such portion
thereof as will make the Premises unsuitable for the use contemplated hereby, be
taken or  condemned  by any  public or  quasi-public  authority  (including  any
conveyance  in lieu  thereof),  then the Term hereof  shall cease as of the date
possession thereof is taken by the condemnor,  and Base Rent and Additional Rent
shall be accounted  for as between  Landlord and Tenant as of that date.  If any
lesser  portion  of the  Premises  is thus  taken or  condemned,  Base  Rent and
Additional  Rent shall  abate in  proportion  to the loss of the use  occasioned
thereby.  Tenant shall not have any right or claim to any part of any award made
to or  received  by  Landlord  for such  taking  or any  right or claim  against
Landlord for the value for the unexpired term of this Lease; provided,  however,
nothing  contained  herein shall  preclude  Tenant from making a claim  directly
against the condemning authority for loss of business, cost of moving, etc.

<PAGE>

         22.      Indemnity.  Tenant shall  defend,  indemnify and hold harmless
Landlord,  Landlord's  agents and property  managers and any mortgagee  from and
against all claims for  injuries to persons or  property  or  administrative  or
criminal action by a governmental authority, which arises from:

                  (i)      Tenant's  possession,  use,  occupation,  management,
                           repair, maintenance or control of the Premises or any
                           other portion thereof;

                  (ii)     Any act or  omission  of Tenant or  Tenant's  agents,
                           employees or invitees;

                  (iii)    Any default,  breach, violation or non-performance of
                           this Lease by Tenant; or

                  (iv)     Any  injury  to person  or  property  or loss of life
                           sustained in or about the Premises.

                  Tenant shall defend any claims  against  Landlord,  Landlord's
agents,  property managers,  and any mortgagees with respect to the foregoing or
in any action in which they may be  impleaded.  Tenant  shall pay,  satisfy  and
discharge any judgments,  orders and decrees which may be recovered  against the
Landlord,   property  manager  and/or  any  mortgagee  in  connection  with  the
foregoing.  Tenant needs  indemnification  for losses,  etc. caused by Landlord,
Landlord's agents or property managers.

                  If Landlord, without fault on its part, is made a party to any
litigation  commenced by or against  Tenant,  Tenant  agrees to protect and hold
Landlord  harmless  therefrom  and to pay all  costs,  expenses  and  reasonable
attorneys' fees incurred or paid by Landlord in connection with such litigation.

                  Landlord  shall defend,  indemnify  and hold harmless  Tenant,
Tenant's  agents and property  managers and any  mortgagee  from and against all
claims for injuries to persons or property or  administrative or criminal action
by a governmental authority, which arises from:

                  (i)      Landlord's possession,  use, occupation,  management,
                           repair, maintenance or control of the Premises or any
                           other portion thereof;

                  (ii)     Any act or omission of Landlord or Landlord's agents,
                           employees or invitees;

                  (iii)    Any default,  breach, violation or non-performance of
                           this Lease by Landlord; or

                  (iv)     Any  injury  to person  or  property  or loss of life
                           sustained  in  or  about  the   Premises   caused  by
                           Landlord,  Landlord's agents,  employees, or property
                           managers.

                  Landlord  shall  defend any claims  against  Tenant,  Tenant's
agents,  property managers,  and any mortgagees with respect to the foregoing or
in any action in which they may be impleaded.  Landlord  shall pay,  satisfy and
discharge any judgments,  orders and decrees, which may be recovered against the
Tenant, property manager and/or any mortgagee in connection with the foregoing.

                  If Tenant,  without  fault on its part, is made a party to any
litigation commenced by or against Landlord, Landlord agrees to protect and hold
Tenant  harmless  therefrom  and to  pay  all  costs,  expenses  and  reasonable
attorneys' fees incurred or paid by Tenant in connection with such litigation.

         23.      Landlord's  Entry.  Upon  twenty-four  (24)  hours  notice  to
Tenant,  Landlord  may  enter  the  Premises  during  business  hours,  and in a
reasonable  manner  to  inspect  or  exhibit  same,  to comply  with  Landlord's
obligations hereunder, to exercise Landlord's rights under this Lease agreement,
or to make repairs or renovations  required in connection with adjoining spaces.
Additionally,  Tenant  expressly  authorizes  Landlord  to enter  the  Premises,
without  prior  notice,  in case of an  emergency  to take action  necessary  to
preserve the  Premises.  Tenant will permit  Landlord to place and maintain "For
Rent" or "For Lease" signs on the  Premises  during the last ninety (90) days of
the Lease Term without compensation to Tenant.

<PAGE>

         24.      Default and Remedies.  If Tenant shall fail to pay either Base
Rent or  Additional  Rent when  due,  or any other  sums of money  becoming  due
hereunder within ten (10) days of written notice,  or if Tenant shall default in
the performance of any of the other terms, conditions, or covenants contained in
this Lease within  thirty (30) days after  written  notice  thereof or does not,
within such thirty (30) days, commence such act or acts as shall be necessary to
remedy a default,  which is not curable within said thirty (30) days for reasons
beyond the  control of Tenant,  and shall not  complete  such act or acts within
sixty (60) days after  written  notice,  or if Tenant shall  become  bankrupt or
insolvent, or file any debtor proceedings,  or file in any court pursuant to any
statute,  either of the United  States or any state a petition in  bankruptcy or
insolvency  or for  reorganization,  or file or have filed against it a petition
for the appointment of a receiver or trustee for substantially all of the assets
of Tenant,  or if Tenant makes an assignment  for the benefit of  creditors,  or
petitions for or enters into an  arrangement  with its  creditors,  or if Tenant
shall  abandon  the  Premises  or suffer the Lease to be taken under any writ of
execution and such writ is not vacated or set aside within fifteen (15) days, an
event of default shall have occurred.  Without terminating the Lease, and with a
Court Order,  Landlord  shall have the right to re-enter and take  possession of
the Premises or any part thereof and repossess the same and expel the Tenant and
those  claiming  through or under the  Tenant and remove the  effects of both or
either with force, if necessary, without being deemed guilty in trespass or of a
forcible entry or detainer and without  prejudice to any remedies for arrears of
rent or preceding  breach of  covenants.  In such event,  the Landlord  shall be
entitled  to recover  from the Tenant all damages  incurred  by the  Landlord by
reason  of the  Tenant's  default,  including  but not  limited  to the  cost of
recovering possession of the Premises, expenses of reletting including necessary
repair of any damages to the  Premises,  reasonable  attorneys'  fees,  any real
estate  commission  actually paid, the worth at the time of the unpaid Base Rent
for the balance of the Term.  If Landlord  should  take  possession  pursuant to
legal  proceedings,  it may either  terminate  this Lease or it may from time to
time  without  terminating  this Lease,  relet the Premises for such Term and at
such rentals and upon such other terms and  conditions  as the Landlord may deem
advisable.  If such reletting shall yield rentals  insufficient for any month to
pay the rental due by Tenant hereunder for that month, Tenant shall be liable to
Landlord for the deficiency and same shall be paid monthly.  No such re-entry or
taking  possession of the Premises by Landlord shall be construed as an election
to terminate  this Lease unless written notice of such intention be given by the
Landlord to the Tenant at the time of such re-entry;  but, not  withstanding any
such  re-entry  and  reletting  without  termination,  Landlord  may at any time
thereafter  elect to  terminate  this Lease for such  previous  breach.  If as a
result of Tenant's default hereunder, Landlord shall institute legal proceedings
for the enforcement of Tenant's obligations, Tenant shall pay all costs incurred
by Landlord, including reasonable attorneys' fees.

                  Landlord  may relet all or any part of the Premises for all or
any part of the  unexpired  portion  of the Term of this Lease or for any longer
period. Landlord may accept any rental then obtainable, grant any concessions of
rent,  and make any repairs of damage to the  Premises  for any new  Tenant,  as
Landlord may deem advisable

         25.      Right to Close Common Areas.  Landlord shall have the right to
close all or any  portions  of the common  areas to such  extent as may,  in the
opinion of  Landlord's  counsel,  be legally  sufficient to prevent a dedication
thereof or the accrual of any rights to any person or to the public  therein and
to close  temporarily,  if  necessary,  any part of the common areas in order to
discourage non-customer parking, to permit alterations of existing buildings and
other  improvements  or  the  construction  of  additional  buildings  or  other
improvements.

<PAGE>

         26.      Arbitration.  At Landlord's request,  any disagreement between
the parties  hereto with respect to the  interpretation  or  application of this
Lease, or the obligations of the parties hereunder,  or to any matter of dispute
arising  between the parties hereto,  shall be determined by  arbitrators.  Such
arbitration shall be conducted before three (3) arbitrators  (unless the parties
hereto agree to one  arbitrator).  Landlord shall have the right to name one (1)
arbitrator and the Tenant shall name one (1) arbitrator. The two (2) arbitrators
shall then  choose a third  arbitrator.  The  arbitrators  shall  conduct  their
proceedings  and make  their  decisions  in  strict  conformity  with the  South
Carolina Uniform  Arbitration Act;  provided,  however,  such arbitrators  shall
apply  applicable  South Carolina law to any  controversy.  All such arbitration
proceedings  hereunder shall be conducted in Charleston County,  South Carolina.
The  decision of the  arbitrator  or  arbitrators,  as the case may be, shall be
final, conclusive and binding upon the parties hereto.

         27.      Remedies Cumulative Non-Waiver.  No remedy herein or otherwise
conferred  upon or reserved to Landlord or Tenant shall be considered  exclusive
of any other remedy, but the same shall be distinct, separate and cumulative and
shall be in addition to every other remedy given hereunder,  or now or hereafter
existing  at law or in equity;  and every  power and remedy  given by this Lease
Agreement  may be exercised  from time to time as often as occasion may arise or
as may be deemed  expedient.  No delay or omission  of Landlord to exercise  any
right or power  arising  from any default on the part of Tenant shall impair any
such right or power,  or shall be construed to be a waiver of any such  default,
or any future default, or an acquiescence  therein.  The acceptance of Base Rent
by Landlord with knowledge of default by Tenant hereunder shall not constitute a
waiver of such default.

         28.      Limited Recourse.  The liability of Landlord to Tenant for any
default  by  Landlord  under the terms of this  Lease  shall be  limited  to the
proceeds of sale on  execution  of the  interest of Landlord in the Premises and
Landlord shall not be personally liable for any deficiency, except that Landlord
shall remain  personally  liable to account to Tenant for any  Security  Deposit
hereunder.  The clause shall not be deemed to limit or deny any remedies,  which
Tenant  may have in the event of  default by  Landlord  hereunder,  which do not
involve the personal liability of Landlord.  The liability of Tenant to Landlord
for any  default by Tenant  under the terms of this Lease shall be united to the
Base Rent due for the remaining Term of Lease and Tenant shall not be personally
liable for any deficiency.

         29.      Quiet  Enjoyment.  If  Tenant  shall  pay the  Base  Rent  and
Additional  Rent when due and perform and observe all of the other covenants and
conditions  to be performed  and observed by it  hereunder,  Tenant shall at all
times  during the term  hereof have the  peaceable  and quiet  enjoyment  of the
Premises  without  interference  from Landlord or any person  lawfully  claiming
through Landlord, subject, however, to the terms of this Lease Agreement and any
mortgages or deeds of trust provided for in Paragraph 31 hereof.

         30.      Estoppel Agreement. Within ten (10) days after written request
thereof by the Landlord or any  mortgagee or trustee under a mortgage or deed of
trust covering the Premises, Tenant shall deliver in recordable form a statement
to any mortgagee,  trustee or other transferee,  or to Landlord,  certifying any
facts that are then true with respect to this Lease Agreement, including without
limitation (if such may be the case) that this Lease  Agreement is in full force
and effect,  that Tenant is in possession,  that Tenant commenced the payment of
Rent,  and  that  Tenant  claims  no  defense  or  set-off  to the due and  full
performance of its obligations under this Lease Agreement.

         31.      Subordination  and  Attornment;  Transfer.  Tenant agrees that
this Lease shall be subject to and subordinate to any mortgages,  deeds of trust
or any ground Lease now or hereafter placed upon the Premises,  the Building, or
land upon which the Premises is located and to all modifications thereto, and to
all present and future  advances  made with respect to any such mortgage or deed
of trust.  Tenant agrees to attorn to the  mortgagee,  trustee,  or  beneficiary
under such mortgage or deed of trust, and to the purchaser at a sale pursuant to
the foreclosure  thereof, and to the lessor in the event of a termination of any
such ground Lease.

<PAGE>

                  In the event of the transfer and assignment by Landlord of its
interest in this Lease and in the Building  containing  the Premises to a person
expressly  assuming  Landlord's  obligations  under this Lease,  Landlord  shall
thereby be released from any further obligations hereunder, and Tenant agrees to
look solely to such  successor in interest of the Landlord  for  performance  of
such obligations.  Any Security Deposit given by Tenant to secure performance of
Tenant's  obligations  hereunder may be assigned and  transferred by Landlord to
such  successor in interest,  and Landlord  shall  thereby be  discharged of any
further obligation relating thereto.

         32.      Jurisdiction  and Venue.  Tenant  expressly  consents that the
Courts of the State of South Carolina shall have  jurisdiction  over any dispute
arising out of this Lease or the Premises  between  Landlord and Tenant  (unless
Landlord  exercises  its rights to  arbitration),  that the County of Charleston
shall be the proper place of venue for any such proceeding and Tenant  expressly
waives any rights to object to same.

         33.      Notices.  All  notices  provided  for in this Lease  Agreement
shall be in writing and shall be deemed to be given when sent by  registered  or
certified mail,  return receipt  requested,  postage  prepaid,  and addressed as
follows:

                             If to Landlord:
                             SMD PROPERTIES
                             960 BERRY SHOALS ROAD
                             DUNCAN, South Carolina 29334

                             If to Tenant:
                             CHARLESTON GOLD AND DIAMOND EXCHANGE, INC.
                             503 Wando Park Boulevard
                             Mt. Pleasant,  South Carolina 29464

                  Notices  shall  also be sent to the  holder or  holders of any
mortgage or deed of trust  covering  the Premises at such address as such holder
or holders may have given by notice as herein provided.  Either party hereto, or
any such holder, may from time to time, by notice as herein provided, designated
a different address to which notices to it shall be sent.

         34.      Governing  Law.  This Lease  Agreement  shall be governed  by,
construed  and  enforced  in  accordance  with  the  laws of the  State of South
Carolina.

         35.      Nature  and  Extent  of  Agreement.   This  Lease   Agreement,
including the exhibits attached hereto,  contains the complete agreement between
the parties regarding the terms and conditions of the Lease of the Premises, and
there are no oral or written conditions, terms, warranties,  understandings,  or
other agreements  pertaining  thereto which have not been  incorporated  herein.
This Lease Agreement may be modified only by written instrument duly executed by
either parties or their respective successors in interest.

         36.      Holding  Over.  This  Lease  expires  at the  end of the  Term
defined  herein,  but it is expressly  understood  that if Tenant holds over for
another month at the end of said Term for any purpose, and Landlord accepts Rent
for said month,  such  acceptance  shall operate as a renewal of the tenancy for
another month and for each  additional  month for which  Landlord  accepts Rent.
Should Landlord require possession of the Premises,  it shall give Tenant thirty
(30) days to vacate the said Premises during such hold over period.  The monthly
Base Rent during the hold over period shall be at fifty percent  (50%)  increase
above the  monthly  Base  Rent paid for the last  month of the term as set forth
herein.

         37.      Attorney's  Fees. If Tenant defaults in the performance of any
of the  covenants of this Lease and by reason  thereof the Landlord  employs the
service of an attorney to enforce  performance by Tenant, or to evict Tenant, to
collect monies due by Tenant, or to perform any service based upon said default,
then  the  Tenant  shall  pay a  reasonable  attorney's  fee and all  reasonable
expenses and costs incurred by Landlord pertaining thereto.

                  If  Landlord  defaults  in  the  performance  of  any  of  the
covenants of this Lease and by reason  thereof the Tenant employs the service of
an  attorney  to enforce  performance  by  Landlord,  to  collect  monies due by
Landlord,  or to perform any service based upon said default,  then the Landlord
shall pay a  reasonable  attorney's  fee and all  reasonable  expenses and costs
incurred by Tenant pertaining thereto.

<PAGE>

         38. Non-Waiver. The failure of Landlord or Tenant to insist upon strict
performance of any of the terms,  conditions  and covenants  herein shall not be
deemed to be a waiver of any rights or  remedies  that  Landlord  and Tenant may
have,  and shall not be deemed a waiver of any  subsequent  breach or default in
the terms,  conditions and covenants herein contained except as may be expressly
waived in writing.

         39.      Non-Easement. It is understood and agreed that this Lease does
not grant any rights to light and air over property  adjoining the land on which
the Premises is situated.

         40.      No  Representations  by  Landlord.  Tenant  acknowledges  that
neither  Landlord  nor any broker,  agent or  employee of Landlord  has made any
representations  or promises with respect to the Premises or the Building except
as herein expressly set forth in the Lease Agreement, and any attachments hereto
or incorporated by reference, and no rights,  privileges,  easements or licenses
are acquired by Tenant except as herein expressly set forth.

         41.      Time is of the Essence.  It is understood  and agreed  between
the  parties  hereto  that  time  is of the  essence  in all  of the  terms  and
provisions of this Lease.

         42.      Caption and Titles.  The captions and titles  appearing within
this Lease are for  reference  only and shall not be  considered  a part of this
Lease or in any way modify, amend, or affect the provisions thereof.

         43.      Grammatical  Changes.  The proper grammatical changes shall be
understood  and apply where  necessary to designate  the plural  rather than the
singular and the masculine or feminine gender.

         44.      Recordation and Documentary  Stamp Taxes. This Lease shall not
be recorded,  but a short form referring to this Lease,  describing the Premises
setting  forth the term  thereof may be recorded  by either  party.  The cost of
recording shall be paid by the recording party.

         45.      No Partnership or Joint Venture. Landlord does not, in any way
or for any purpose,  become a partner of Tenant in the conduct of its  business,
or otherwise, or a joint venturer or a member of a joint enterprise with Tenant.

         46.      Binding  Agreement.  The conditions,  covenants and agreements
contained  in this Lease  shall be binding  upon and inure to the benefit of the
parties hereto and their respective successors, heirs, executors, administrators
and assigns except as otherwise provided in this Agreement.  No rights, however,
shall inure to the benefit of any assignee of Tenant  unless the  assignment  to
such  assignee has been approved in accordance  with the  provisions  set out in
this Lease.

         47.      Brokerage:  Tenant  represents  and warrants to Landlord  that
they have not dealt with any broker or finder in connection with the transaction
contemplated by this Lease other than ReMax Realty, who represents the Landlord.
Landlord  agrees  to pay to  Broker  the  commission  earned  by  reason of this
transaction  as agreed upon between  Landlord and Broker.  Tenant shall  defend,
indemnify and hold harmless  Landlord and  Landlord's  Agent against any and all
expense,  cost, damage or liability  (including without limitation,  court costs
and reasonable  attorney's fees, at trial and appeal)  resulting from the claims
of any other brokers, or those claiming to have performed services in the nature
of brokerage or finding services.

         48.      Authority. If Tenant is a corporation,  general partnership or
limited partnership, each person executing this Lease on behalf of Tenant hereby
covenants  and warrants  that Tenant is a duly  organized  corporation,  general
partnership or limited  partnership (as the case my be) qualified to do business
in the State of South  Carolina,  that it has full  authority to enter into this
Lease  and that  each  person  executing  this  Lease on  behalf  of  Tenant  is
authorized to do so.

<PAGE>

         49.      Interpretation Presumption.  The Landlord and Tenant expressly
agree  that in the  event of a dispute  concerning  the  interpretation  of this
Agreement,  each party hereby  waives the doctrine  that an ambiguity  should be
interpreted against the party who drafted the document.

         50.      No Limitation of Rights and Remedies.  All rights and remedies
of Landlord and Tenant herein  enumerated  shall be cumulative  and shall not be
construed to exclude any other remedies allowed at law or in equity.

         51.      Accord  and  Satisfaction.  No payment by Tenant or receipt by
Landlord of a lessor amount than the Base Rent herein  stipulated will be deemed
to be other  than on  account  of the  earliest  stipulated  rent nor  shall any
endorsement  or statement on any check or any letter  accompanying  any check or
payment of rent be deemed an accord and  satisfaction,  and  Landlord may accept
such check or payment  without  prejudice  to  Landlord's  right to recover  the
balance of such rent or pursue any other  remedy  provided  for in this Lease or
available at law or in equity.

         52.      Force Majeure.  In the event that either party hereto shall be
delayed or hindered in or  prevented  from the  performance  of any act required
hereunder  by  reason  of  strikes,  lockouts,  inability  to  procure  labor or
materials,  failure  of power,  restrictive  governmental  laws or  regulations,
riots,  war,  fire, or other casualty or other reason of a similar or dissimilar
nature beyond the reasonable control of the party delayed in performing work, or
doing acts required under the terms of this Lease, then performance of such acts
shall be excused for the period of delay and the period for the  performance  of
any such acts shall be extended  for a period  equivalent  to the period of such
delay.  After the commencement  date, the provisions of this paragraph shall not
operate to excuse  Tenant  from the prompt  payment of rent as  required by this
Lease and shall not extend the term of this Lease. Delays or failures to perform
resulting  from lack of funds shall not be deemed delays  beyond the  reasonable
control of a party.

         53.      Third Party Rights.  The rights and obligations  arising under
this  Lease are  personal  between  Landlord  and  Tenant  and such  rights  and
obligations  shall not be  enforceable by any third party.  Furthermore,  Tenant
recognizes  that it has no  third  party  rights  arising  out of any  agreement
between  Landlord  and any party other than Tenant  regardless  of any  benefits
accruing to Tenant by virtue of such agreement.

         54.      Option/Offer.  The Tenant  shall have an option to purchase as
per the terms and  conditions  specified  in the  AGREEMENT  TO BUY AND SELL and
attached  hereto as "A-2" Dated May 3rd, 2000 between SMD  Properties and Dallas
Gold and Silver  Exchange.  This option to purchase shall terminate ONE (1) YEAR
from the date of delivery of the Premises. If the above said option is exercised
all monies  received,  as security deposit shall apply towards the earnest money
deposit on the AGREEMENT TO BUY AND SELL.

         IN  WITNESS  WHEREOF,  the  parties  hereto  have  hereunto  set  their
respective hands and seals on the day and year first above written.

WITNESSES:                          Landlord:

________________________            By: ___________________________
As to Landlord
                                    Its: __________________________

                                    Dated: ________________________

                                    Tenant:

________________________            By: ___________________________
As to Tenant
                                    Its: __________________________

                                    Dated: ________________________<PAGE>

                                                                   EXHIBIT 10.11

                      RULES OF THE VITRIA TECHNOLOGY, INC.
                      ------------------------------------
                1999 EQUITY INCENTIVE PLAN FOR FRENCH EMPLOYEES
                -----------------------------------------------

1.        Introduction.
          ------------

          The Board of Directors (the "Board") of Vitria Technology, Inc. (the
"Company") has established the Vitria Technology, Inc. 1999 Equity Incentive
Plan (the "U.S. Plan") for the benefit of certain employees of the Company, its
parent and subsidiary companies, including its French subsidiary(ies), listed in
Appendix 1 as amended from time to time, (the "Subsidiary" or "Subsidiaries") of
which the Company holds directly or indirectly at least 10% of the capital.
Section 3(b)(ii) of the U.S. Plan specifically authorizes the Board to establish
rules applicable to options granted under the U.S. Plan (including those in
France) as the Board deems advisable.  The Board has determined that it is
advisable to establish a sub-plan for the purposes of permitting such options to
qualify for French favorable local tax and social security treatment.  The
Board, therefore, intends to establish a sub-plan of the U.S. Plan for the
purpose of granting options which qualify for the favorable tax and social
security treatment in France applicable to options granted under the Sections L
208-1 to L 208-8-2 of the Law no. 66-537 of July 24, 1966, as subsequently
amended, to qualifying employees who are resident in France for French tax
purposes (the "French Optionees").  The terms of the U.S. Plan, effective as of
June 21, 1999 and as set out in Appendix 2 hereto, shall, subject to the
modifications in the following rules, constitute the Vitria Technology, Inc.
1999 Equity Incentive Plan for French Employees (the "French Plan").

          Under the French Plan, the qualifying employees will be granted only
stock options as defined in Section 2 hereunder.  The provisions of Sections 7,
8, and 11(b) of the U.S. Plan permitting the grant of Stock Bonus Awards, Stock
Appreciation Rights, and the repurchase of the Options for cash and all other
provisions in relation to the grant of these types of awards are not applicable
to grants made under the French Plan.  In addition, in no case will grants under
the French Plan include any other substitute awards, e.g., restricted stock or
other similar awards.

2.        Definitions.
          -----------

          Capitalized terms used in the French Plan shall have the same meanings
as set forth in the U.S. Plan.

          In addition, the term "Option" shall have the following meaning:

          A.  Purchase stock options that are rights to acquire Common Stock
              repurchased by the Company prior to the grant of the options; or

          B.  Subscription stock options that are rights to subscribe newly
              issued Common Stock.

                                      -1-
<PAGE>

          Notwithstanding any provisions in the U.S. Plan to the contrary, for
Options granted to French Optionees under the French Plan, no preferred stock in
lieu of Common Stock may be issued.

          The term "Grant Date" shall be the date on which the Administrator
both (a) designates the French Optionee and (b) specifies the terms and
conditions of the Option including the number of shares and the Option price.

          The term "Vesting Date" shall mean the date on which a French
Optionee's right to all or portion of an Option granted under the French Plan
becomes non-forfeitable.  Under the French Plan, the Vesting Date will be noted
in the Grant Notice.

          The term "Exercise Date" shall mean the date on which a portion of a
Participant's Option becomes exercisable.  The Exercise Date shall be the
anniversary of the Grant Date as required by the holding period applicable to
French qualified options under French law on the Grant Date according to section
163 bis C of the French tax code.

3.        Entitlement to Participate.
          --------------------------

          Any individual who is a salaried employee or corporate executive of a
Subsidiary shall be eligible to receive Options under the French Plan.  Options
may not be issued under the French Plan to employees or executives owning more
than ten percent (10%) of the Company's capital shares or to individuals other
than employees and corporate executives of the Subsidiary.  Options may not be
issued to directors of the Subsidiary, other than the managing director
(Chairman, General Manager, Member of the Directorate), unless they are employed
by the Subsidiary.  Options may not be granted to consultants of the company or
of its subsidiaries.

4.        Conditions of the Option/Option Price.
          -------------------------------------

          Notwithstanding any provision in the U.S. Plan to the contrary, the
conditions of the U.S. Plan, of the French Plan and of any Options granted
thereunder shall not be modified after the Grant Date with retroactive effect,
except that the Option price and number of shares may be modified as provided
under Section 7 of the French Plan.  In this respect, the fact that French
Optionees approve or would have approved such modification is irrelevant.

          Vesting and exercisability of the Option may be modified as provided
in Section 5 of the French Plan.

          The Option price payable pursuant to Options issued hereunder shall be
fixed by the Board on the date the Option is granted, but in no event shall the
Option price per share be less than the greater of:

                                      -2-
<PAGE>

          A.   with respect to purchase Options over Common Stock, the higher of
               either 80% of the average quotation price of such Common Stock
               during the 20 days of quotation immediately preceding the Grant
               Date or 80% of the average purchase price paid for such Common
               Stock by the Company;

          B.   with respect to subscription Options over the Common Stock, 80%
               of the average quotation price of such Common Stock during the 20
               days of quotation immediately preceding the Grant Date; and

          C.   the minimum Option price permitted under the U.S. Plan.

5.        Exercise of an Option.
          ---------------------

          The Options will become vested on the Vesting Date as defined under
Section 2 above.  No option can be exercised before the exercise date.  However,
notwithstanding the above, special provisions apply in the event of termination
of employment due to death and disability (as defined hereunder) as follows:

          In the event of the death of a French Optionee, outstanding Options
shall be immediately vested and exercisable under the conditions set forth in
Section 8 of the French Plan.

          In the event of termination of employment due to disability, which is
defined as disability under categories 2 or 3 under Section L 341-4 of the
French Social Security Code, the Option shall become fully vested and
exercisable upon such termination.  The Optionholder may exercise his or her
option but only within such period of time ending on the earlier of (i) the time
period specified in the Option Agreement, or (ii) the expiration of the term of
the Option.

          If the Optionholder terminates service other than upon the
Optionholder's death or disability, the Optionholder may exercise his or her
Option, to the extent that the Optionholder was entitled to exercise such Option
on the date of termination, but only within such period of time ending on the
earlier of (i) the date three (3) months following the termination, (ii) the
period specified in the Option Agreement, or (iii) the expiration of the term of
the Option

          Notwithstanding the provisions of Section 10(a) of the U.S. Plan,
shares issued upon exercise of an Option shall be issued in the name of the
French Optionee only, except in the event of death as referred to under Section
8 of the French Plan.

          Notwithstanding any provisions in the U.S. Plan to the contrary, upon
exercise of an Option, the full Option price will be paid either in cash, by
check or by credit transfer.  Under a cashless exercise program, the French
Optionee may give irrevocable instructions to a stock broker to properly deliver
the Option price to the Company.  Notwithstanding any provisions in the U.S.
Plan to the contrary, no delivery of prior owned shares having a fair market
value on the date of delivery equal to the aggregate exercise price of the
shares may be used as consideration for exercising the Options.

                                      -3-
<PAGE>

          Furthermore, notwithstanding any provisions in the U.S. Plan to the
contrary, shares owed to the French Optionee upon exercise may not be withheld
in order to meet the tax and/or social security charges which might be due at
the time of exercise or sale of the underlying Shares.  However, upon sale of
the underlying shares, the Company and/or the Subsidiary shall have the right to
withhold, or request any third party to withhold (e.g., the broker), from the
proceeds to be paid to the French Optionee the sums corresponding to any social
security charges due at exercise or sale by the French Optionee.  If such
amounts are due and are not withheld, the French Optionee agrees to submit the
amount due to the Subsidiary by means of check, cash or credit transfer.

          The shares acquired upon exercise of an Option will be recorded in an
account in the name of the shareholder with a broker.

6.        Non-transferability of Options.
          ------------------------------

          Notwithstanding any provision in the U.S. Plan to the contrary and
except in the case of death, Options cannot be transferred to any third party.
In addition, the Options are only exercisable by the French Optionee during the
lifetime of the French Optionee.

7.        Changes In Capitalization.
          -------------------------

          Notwithstanding any provisions of the U.S. Plan to the contrary,
adjustments to the Option price and/or the number of shares subject to an Option
issued hereunder shall be made to preclude the dilution or enlargement of
benefits under the Option only in the event of one or more of the transactions
listed below by the Company.  Furthermore, even upon occurrence of one or more
of the transactions listed below, no adjustment to the kind of shares to be
granted shall be made (i.e., only shares of Common Stock shall be granted to
French Participants).  The transactions are as follows:

          A.   an issuance of new shares for cash consideration reserved to the
               Company's existing shareholders;

          B.   an issuance of convertible or exchangeable bonds reserved to the
               Company's existing shareholders;

          C.   a capitalization of retained earnings, profits, or issuance
               premiums;

          D.   a distribution of reserves by payment in cash or shares;

          E.   a cancellation of shares in order to absorb losses; and

          F.   a purchase, by the Company when listed, of its own shares at a
               price higher than their then current quotation price.

                                      -4-
<PAGE>

          An increase or decrease in the number of issued shares of Common Stock
effected without receipt of consideration by the Company is not within the scope
of the prohibition of the first paragraph of this Section 7.

8.        Death.
          -----

          In the event of the death of a French Optionee, the Options shall
become immediately vested and exercisable.  The French Optionee's heirs may
exercise the Option within six months following the death, but any Option which
remains unexercised shall expire six months following the date of the French
Optionee's death.

9.        Term of the Option.
          ------------------

          The term of the Option will be nine years and six months.  This term
can only be extended in the event of the death of the French Optionee.

10.       Interpretation.
          --------------

          It is intended that Options granted under the French Plan shall
qualify for the favorable tax and social security treatment applicable to stock
options granted under the Law no. 66-537 of July 24, 1966, as subsequently
amended, and in accordance with the relevant provisions set forth by French tax
law and the French tax administration.  The terms of the French Plan shall be
interpreted accordingly and in accordance with the relevant provisions set forth
by French tax and social security laws, as well as the French tax and social
security administrations.

          In the event of any conflict between the provisions of the present
French Plan and the U.S. Plan, the provisions of the French Plan shall control
for any grants made thereunder to French Optionees.

11.       Adoption.
          --------

          The French Plan is effective as of October 26, 2000.

                                      -5-
<PAGE>

                                   APPENDIX 1

Vitria Technology S.A.S.
12-14 Rond point des Champs Elysees
75008 Paris
FRANCE
(33) 15-35-31-414

                                      -1-
<PAGE>

                                   APPENDIX 2

                           1999 Equity Incentive Plan

                                      -1-

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