Document:

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         DATED                  SEPTEMBER 29, 2000                        2000
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                     ALDWYCH HOUSE BV and NEN BELEGGINGEN BV

                                       and

                           CME DEVELOPMENT CORPORATION

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                                      LEASE

                                       of

                        Part Eighth Floor, Aldwych House,
                          71/81/91 Aldwych, London WC2

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                                Nabarro Nathanson
                                   Lacon House
                                 Theobald's Road
                                 London WC1X 8RW
                               Tel: 020 7524 6000

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                                      LEASE

DATE        SEPTEMBER 29, 2000

PARTIES

(1)    ALDWYCH HOUSE BV a company registered in the Netherlands with no.
       14044777 and NEN BELEGGINGEN BV a company registered in the Netherlands
       with no. 27065573 (hereinafter called "THE LANDLORD" which expression
       shall where the context so admits include the person for the time being
       entitled to the reversion immediately expectant on the determination of
       the term hereby created);

(2)    CME DEVELOPMENT CORPORATION a company incorporated in and organised under
       the laws of the State of Delaware, USA and whose registered office is at
       32 Lockerman Square, Suite L-100, Denver, Delaware 19901, USA
       (hereinafter called the "TENANT" which expression shall where the context
       so admits include the Tenant's successors in title and assigns of the
       Tenant).

IT IS AGREED AS FOLLOWS:

(A)  The Landlord hereby demises unto the Tenant all that suite of offices
     situate on part of the eighth floor of and being part of the Landlord's
     building known as Aldwych House, 71/81/91 Aldwych, London WC2 (hereinafter
     called "THE BUILDING") which said suite of offices is shown for
     identification only edged with the colour red on the plan annexed hereto
     together with the fixtures and fittings in the nature of Landlord's
     fixtures or fittings now or at any time during the term hereby granted in
     and upon the said suite of offices or any part thereof and serving the same
     whether exclusively or not together with all carpets and floor coverings in
     the said suite of offices provided by the Landlord which carpets and floor
     coverings (and the carpets and floor coverings renewing those so provided)
     are included wherever reference is hereinafter made to such fixtures and
     fittings (which said suite of offices fixtures and fittings are hereinafter
     called "THE DEMISED PREMISES") together with the rights specified in the
     First SCHEDULE hereto but except and reserved unto the Landlord and its
     successors in title and assigns and the tenants and occupiers of other
     parts of the Building and all other persons entitled thereto the easements
     and rights specified in the Second SCHEDULE hereto to hold the same unto
     the Tenant for the term of 15 years commencing on the date hereof
     (hereinafter called "THE COMMENCEMENT DATE") but determinable as
     hereinafter provided yielding and paying therefor first.

(i)  RENT

     During the period from the date hereof and ending on January 24 two
     thousand and one the rent of a peppercorn (if demanded).

(ii) As from January 25 two thousand and one the annual rent of one hundred and
     seventy five thousand pounds ((GBP)175,000) and any increase therein as
     agreed or determined pursuant to the provisions of CLAUSE 2 hereof which
     (inter alia) provides that the amount of such yearly rent payable from and
     after a relevant date of review as therein mentioned

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     shall be set out in a memorandum separate from this Lease the aforesaid
     yearly rents to be paid in each case without deduction by equal quarterly
     payments in advance on the usual quarter days in every year (hereinafter
     referred to as "PAYMENT DAYS") ("THE RENT FIRSTLY RESERVED").

(iii)    SERVICE CHARGE

     Secondly by way of further rent commencing on the date hereof and during
     the remainder of the said term a service charge calculated and to be paid
     in manner specified in the Third SCHEDULE hereto ("THE RENT SECONDLY
     RESERVED").

(iv)     INSURANCE

     Thirdly by way of further rent a fair proportion conclusively to be
     determined (save in the case of manifest error) by the Landlord's surveyor
     (meaning a Chartered Surveyor appointed by the Landlord for the purposes of
     this Lease) of the cost to the Landlord in complying with the covenant
     contained in CLAUSE 3.3 hereof such further rent to be paid within seven
     days after demand therefor by the Landlord ("THE RENT THIRDLY RESERVED").

(v)      OTHER SUMS

     Fourthly all other monies payable hereunder by the Tenant to the Landlord
     and any value added tax to be paid on demand the rents Firstly Secondly and
     Thirdly and Fourthly reserved hereunder and any other sums reserved as rent
     being together referred to as "THE RENTS".

2.       TENANT'S COVENANTS

     The Tenant hereby covenants with the Landlord as follows:

2.1      PAYMENT OF RENT

     To pay the Rents hereinbefore reserved at the times and in manner aforesaid
     without deduction.

2.2      PAYMENT OF OUTGOINGS

2.2.1 To defray or (in the absence of direct assessment on the demised premises)
      to pay to the Landlord on demand (save in so far as the same is paid by
      way of the service charge) a fair proportion (to be determined by the
      Landlord's surveyor acting reasonably whose decision shall save in the
      case of manifest error be binding upon the Tenant) all existing and future
      rates taxes duties assessments charges and impositions levies and
      outgoings whatsoever whether parliamentary local or otherwise now or
      hereafter payable by law in respect of the demised premises or any part
      thereof by the owner Landlord Tenant or occupier thereof other than any
      tax or levy payable by the Landlord by reason of a dealing by the Landlord
      with or the ownership of its reversionary interest in the demised premises
      or its receipt of the rents hereinbefore reserved.

2.2.2 To pay any value added tax (or similar tax) which may from time to time be
      charged on the rent firstly reserved or on any other monies payable by the
      Tenant under this Lease

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2.3      REPAIRS ETC.

2.3.1 Throughout the said term (damage by fire and such other risks against
      which the Landlord has insured excepted save in so far as the insurance
      monies or any part thereof shall be irrecoverable in consequence of any
      act or default of the Tenant or any person deriving title under the Tenant
      or any of the servants or agents or licensees of the Tenant or of any such
      person) well and substantially to repair and keep in good and substantial
      repair and condition:

     (a)  all non-load-bearing walls within the demised premises (and the
          plaster and finishes thereof);

     (b)  the plaster and finishes on the internal faces of the boundary walls
          and on the structure enclosing the demised premises;

     (c)  the plaster and finishes on all structural parts of the Building
          within the demised premises;

     (d)  all floors in the demised premises (including all floor boxes raised
          floors and the supports thereof) and all floor finishes down to but
          excluding structural slabs;

     (e)  all ceilings of the demised premises (up to but excluding structural
          slabs);

     (f)  the glass in all the doors and in all windows of the demised premises;

     (g)  all sash cords (if any) of the demised premises;

     (h)  all doors of the demised premises;

     (i)  all fixtures and fittings of the nature of the Landlord's fixtures or
          fittings and all sanitary and water apparatus and all conducting media
          exclusively serving the demised premises; and

     (j)  all other parts of the interior of the demised premises other than:

          (i)  all structural parts of the Building within the demised premises
               (save for the plaster finishes thereof aforesaid);

          (ii) the window frames;

          (iii) the heating cooling and ventilating apparatus and the sprinkler
               system (if any) forming part of the demised premises; and

          (iv) any conducting media serving other parts of the Building.

2.3.2 To renew and replace from time to time as necessary all fixtures and
      fittings of the nature of Landlord's fixtures and fittings forming part of
      the demised premises (other than heating and air-conditioning apparatus)
      which may be beyond repair.

2.3.3 Not to carry out repairs to any:

(a)      heating or air-conditioning apparatus;

(b)      sprinkler system;

(c)      fire hoses;

(d)      emergency lighting system;

(e)      intruder alarm system;

(f)      fire alarm system; or

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(g)      other fire prevention and detection system or any equipment
         belonging thereto within the demised premises.

2.3.4    As often as may be necessary and in any event in the last six
         months of the tenancy hereby created (howsoever determined) to
         replace the carpets included in this demise with new carpets of
         the same quality such new carpets to be of a colour and quality
         first approved in writing by the Landlord (such approval not to be
         unreasonably withheld).

2.4      REDECORATION

2.4.1 In every fifth year of the said term (the time in each case being computed
      from the commencement date) and in any event in the last three months of
      the term (howsoever determined) in a proper and workmanlike manner with
      good quality materials and to the reasonable satisfaction of the Landlord
      to prepare and paint or otherwise appropriately treat all such parts of
      the interior of the demised premises (including the interior of the window
      frames) as have been previously or are usually so dealt with and re-paper
      re-cover or re-line the parts usually papered covered or lined with good
      quality suitable paper vinyl covering or fabric or other covering provided
      always that the painting and redecorating in the last three months of the
      term shall be carried out in colours tints and patterns first approved in
      writing by the Landlord (such approval not to be unreasonably withheld).

2.4.2 Regularly to clean the washroom areas (if any) on the eighth floor of the
      Building in respect of which the Tenant has exclusive rights of use and to
      maintain them at all times in a clean and tidy condition in each case to
      the Landlord's reasonable satisfaction.

2.4.3 Not to paint or permit to be painted:

     (a)  any of the woodwork of the demised premises which is at the date
          hereof varnished or polished;

     (b)  (except with an emulsion paint or with such other suitable type of
          paint as shall be first approved in writing by the Landlord's surveyor
          whose approval shall not be unreasonably withheld in the case of a
          type of paint which is not oil based) the ceiling tiles or other
          covering comprising part of any false or suspended ceiling in the
          demised premises; or

     (c)  any other part of the demised premises which requires treatment other
          than painting.

2.4.4     Not to paint or permit to be painted or otherwise treated the
          sprinkler heads (if any) within the demised premises.

2.4.5     To renew and replace any sprinkler head painted over by the Tenant or
          its undertenant or otherwise treated and to renew any other part of
          the demised premises painted in breach of the foregoing covenants save
          that in the case of woodwork the Tenant may remove the paint therefrom
          and varnish or polish the same.

2.5      WORKS REQUIRED BY STATUTE LOCAL AND OTHER AUTHORITIES

           To observe and perform in relation to the demised premises all
           requirements of and to do and execute or cause to be done and
           executed all such works and things as under or by virtue of any Act
           of Parliament local Acts building regulations or bye-laws already or
           hereafter

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          to be passed and rules and regulations thereunder as now are or shall
          or may be directed or required to be done or executed upon or in
          respect of the demised premises or any part thereof or in respect of
          the use thereof whether by the owner Landlord Tenant or occupier
          thereof and at all times during the term hereby granted to indemnify
          and keep indemnified the Landlord against all claims demands expenses
          and liability in respect thereof.

2.6      PLANNING

2.6.1     At all times during the term hereby created to comply with the
          provisions and requirements of the Town and Country Planning Act 1990,
          the Planning (Listed Buildings and Conservation Areas) Act 1990, the
          Planning (Hazardous Substances) Act 1990, the Planning (Consequential
          Provisions) Act 1990, the Planning and Compensation Act 1991 and any
          subsequent legislation of a similar nature and any orders plans
          regulations permissions consents and directions made under or in
          pursuance thereof (hereinafter collectively referred to as "THE
          PLANNING ACTS") (in so far as the same directly relate to the demised
          premises or to the Tenant's occupation of the demised premises) and to
          indemnify (as well after the expiration of the said term by effluxion
          of time or otherwise as during its continuance save in respect of any
          such matters arising after the said expiration of the said term) and
          to keep the Landlord indemnified against all liability whatsoever
          including costs and expenses in respect of any breach of this covenant
          and as soon as practicable to produce to the Landlord on receipt by
          the Tenant of notice thereof any notice order or proposal therefor
          made given or issued under or by virtue of the Planning Acts affecting
          or relating to the demised premises and at the request of the Landlord
          to make or join with the Landlord in making every such objection or
          representation against the same as the Landlord shall reasonably
          require.

2.6.2     Not without the previous consent in writing of the Landlord (such
          consent not to be unreasonably withheld) to:

          (a)  apply for, nor to permit any person deriving title under the
               Tenant to apply for, any planning permission relating to the
               demised premises or to any part thereof or to the use thereof or
               any part thereof and in the event of the Landlord reasonably
               attaching any conditions to such consent as aforesaid not to
               apply or permit any application for any such planning permission
               save in accordance with the said conditions;

          (b)  implement or permit to be implemented any planning permission
               save where the planning permission relates to any matter where
               either no further consent of the Landlord is required hereunder
               or such consent has been given; or

          (c)  enter into any agreements with the local or other authority
               whether pursuant to the Planning Acts or otherwise.

2.6.3     Within 14 days after the grant or completion thereof to supply to
          the Landlord a copy of any such planning permission and the
          application therefor and any such agreement and any correspondence
          or drawings incidental or relating thereto.

2.7      ALTERATIONS AND ADDITIONS

2.7.1         Not to injure cut maim alter or make additions to or permit to be
              injured cut maimed or altered or additions made to any of the
              timbers walls or partitions or any other part of the
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              demised premises or the Building save in connection with any of
              the express rights granted to the Tenant (but then only in
              accordance with the provisions of such express rights).

2.7.2         Not without the consent of the Landlord (such consent not to be
              unreasonably withheld) to alter or permit to be altered the
              heating cooling or ventilating apparatus or the sprinkler system
              (if any) forming part of the demised premises.

2.7.3         Not to make or permit to be made any internal non structural
              alteration in or addition to the demised premises or the
              architectural decorations or in the layout or arrangement thereof
              or to the Building without the previous written consent of the
              Landlord (such consent not to be unreasonably withheld).

2.7.4         Where it is reasonable having regard to the extent and nature of
              any alterations or additions proposed to provide security to the
              Landlord's satisfaction for the carrying out and completion of any
              works of alteration or addition to the demised premises for which
              the Landlord's consent is required.

2.7.5         Without prejudice to any of the foregoing provisions of this
              sub-CLAUSE 1.7 at the request of the Landlord forthwith:

               (a)  to make good any such timber wall partition or other part
                    injured cut or maimed; and

               (b)  to demolish and remove any alteration or addition made in
                    breach of this sub-clause and in each case to restore the
                    demised premises to their previous condition to the proper
                    satisfaction of the Landlord.

2.7.6        To notify the Landlord in writing as soon as possible of:

               (a)  completion of any alteration or addition to the demised
                    premises and/or after the installation of any fixtures and
                    fittings which may be installed by the Tenant or any
                    undertenant and which may become landlord's fixtures and
                    fittings; and

               (b)  the cost of such alterations or additions and/or
                    reinstatement value of such fixtures and fittings.

2.7.7     At the expiration or sooner determination of the tenancy hereby
          created the Tenant will if and in so far as reasonably required by the
          Landlord at the Tenant's own cost reinstate and make good to the
          reasonable satisfaction of the Landlord the demised premises and
          restore the same to the plan and design as if no alteration or
          addition other than floor boxes and carpeting had been made by the
          Tenant or its undertenants licensees or occupiers during the Term and
          to pay the proper and reasonable expenses incurred by the Landlord
          (including surveyors' fees) of and incidental to the superintendence
          of such reinstatement and making good.

2.8      ELECTRICAL SYSTEM

           Not to overload or permit to be overloaded any part of the electrical
           system in or serving the demised premises and not except in
           accordance with any current codes of practice to make any alteration
           or addition to such system.
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2.9      AVOIDANCE OF INSURANCE

2.9.1         Not to do or allow to be done anything whereby any insurance for
              the time being effected on the demised premises or any part
              thereof (or the Building or any part thereof or any adjoining or
              neighbouring property for the time being of the Landlord) may be
              rendered void or voidable or be in any way affected, nor do or
              allow to be done anything whereby any additional premium may
              become payable for the insurance of the demised premises the
              Building or any part thereof or any such adjoining or neighbouring
              property and to comply with all recommendations of the insurers as
              to fire precautions relating to the demised premises.

2.9.2         To indemnify the Landlord in respect of all damages costs charges
              expenses and other expenditure suffered or incurred by the
              Landlord by reason of any act neglect default or omission of the
              Tenant its undertenants and their respective agents servants
              employees contractors invitees and others for whom it is
              responsible which renders wholly or partially irrecoverable any
              money under any policy of insurance effected in respect of the
              demised premises or the Building.

2.9.3         In the event of the demised premises or any part thereof (or the
              access thereto) being destroyed or damaged to give notice in
              writing thereof to the Landlord as soon as is practicable
              following the happening of the event.

2.10     HEAVY ITEMS OF MACHINERY

2.10.1        Not to take to or permit to be taken to or remain upon the demised
              premises any safe or any machinery (other than normal office
              machinery not giving rise to a breach of sub-CLAUSE 1.10.2 below)
              or any heavy goods or appliances without the previous written
              consent of the Landlord and to ensure that the same are placed
              only in such position as shall be approved by the Landlord in
              writing (such consent and approval not to be unreasonably
              withheld).

2.10.2        Not to do or bring or permit to be done or brought in or upon the
              demised premises or the Building anything which may throw on the
              demised premises or the Building or any part thereof any weight or
              strain in excess of that which the same is designed to bear.

2.11     AERIALS AND SIMILAR APPARATUS AND INTERFERENCE

2.11.1    Not without the consent in writing of the Landlord (such consent not
          to be unreasonably withheld or delayed) to affix or permit to be
          affixed to the outside of the demised premises or any part thereof any
          wireless radio or television aerial or similar apparatus and not to
          make any claim against the Landlord in respect of interference to
          reception of wireless radio or television transmissions or to the
          operation of any appliance in or upon the demised premises suffered or
          alleged to be suffered by reason of the use of electrical or other
          apparatus in or upon the Building or on any adjoining or neighbouring
          property of the Landlord other than by interference with the
          electrical supply to the demised premises.

2.11.2    Not to cause or permit or suffer to be caused interference to others
          by any radio or electromagnetic signal emitted by the use of apparatus
          operated or installed in or upon the demised premises.
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2.12     PROHIBITION OF GAMING APPARATUS

          Not to install or permit to be installed any amusement or gaming
          apparatus or device in or upon the demised premises or any part
          thereof.

2.13     OFFICE USE ONLY

2.13.1    Not at any time to allow or permit or suffer the demised premises
          or any part thereof to be used for sleeping purposes.

2.13.2    Not to hold or permit or suffer to be held any sale by auction or
          any exhibition or show or spectacle of any kind upon the demised
          premises or any part thereof.

2.13.3    Not to use or permit or suffer to be used the demised premises or
          any part thereof for any illegal or immoral purpose or for any
          dangerous noxious noisy or offensive purpose whatsoever.

2.13.4    Not to use or permit of suffer to be used the demised premises or
          any part thereof for any purpose except that of high class offices
          with ancillary facilities.

2.14     ADVERTISEMENTS

         Not (save as permitted by this Lease) without the previous written
         consent of the Landlord to set up or exhibit upon any part of the
         demised premises any placard poster signboard notice or advertisement
         which shall be visible from outside the demised premises.

2.15     REGULATIONS

           To observe and cause to be observed at all times:

2.15.1     reasonable regulations imposed by the Landlord in respect of the
           lifts and escalators in the Building and for the general running
           orderliness and management of the Building and the services
           thereof and the curtilage thereof as already or from time to time
           hereafter notified in writing by the Landlord to the Tenant; and

2.15.2     the regulations set out in the Fourth SCHEDULE hereto or as they
           shall be reasonably altered or added to from time to time by
           notice in writing by the Landlord to the Tenant and this
           sub-clause shall be without prejudice to the generality of any
           other provision contained in this Lease which shall touch and
           concern the same subjects.

2.16     WAITING ACCOMMODATION TO BE IN THE DEMISED PREMISES AND AS TO DOORS

          To ensure that all requisite waiting accommodation for callers and
          clients is provided within the demised premises and that the doors
          leading from the common landings or corridors into the demised
          premises and all doors designated as fire check doors are not left
          open.

2.17     NUISANCE OR DAMAGE

2.17.1      Not to play or permit to be played in the demised premises any
            musical instrument gramophone radio radiogram television set tape
            recorder or similar apparatus so as to be audible outside the
            demised premises.
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2.17.2    Not to do or permit or suffer to be done anything in or upon the
          demised premises or any part thereof or in or upon any other part of
          the Building or in or upon any other area which the Tenant is by
          virtue of this Lease authorised to use (whether in common with others
          or not) which may be or become a nuisance to or cause damage to the
          Landlord or the tenants or occupiers of any other part of the Building
          or of other property in the neighbourhood or to the public local or
          any other authority.

2.18     LIGHT AND AIR AND OTHER EASEMENTS

2.18.1    Not to block up darken or obscure or permit to be blocked up
          darkened or obscured any doorway passage window light opening or
          grating belonging to the demised premises nor to do or suffer to be
          done anything which may interfere with the access of light or air to
          any portion of the Building and to give to the Landlord immediate
          notice of any encroachment or attempted encroachment made in or upon
          the demised premises or any part thereof and any act matter or thing
          whereby or by reason whereof any damage injury or disturbance may be
          done or occasioned thereto or to any part thereof.

2.18.2    Not to give any third party any acknowledgement that the Tenant
          enjoys the access of light through any of the windows or openings in
          the demised premises or any other right or easement by or with the
          consent of such third party nor to pay to such third party any sum of
          money nor to enter into any agreement with such third party for the
          purpose of inducing or binding such third party to abstain from
          obstructing the access of light to any of such windows or openings or
          from exercising any other right or easement and in the event of any of
          the owners or occupiers of adjacent or neighbouring land or buildings
          or the occupiers of other parts of the Building doing or threatening
          to do anything which obstructs the access of light through any of the
          windows or openings in the demised premises or the exercise of any
          other right or easement to notify the same forthwith to the Landlord
          and to permit the Landlord if necessary to bring all such actions as
          it may think fit against any such persons in respect of the
          obstruction of the access of light to any of the windows or openings
          in the demised premises or the obstruction of the exercise of any
          other right or easement.

2.19     NOTICE OF NECESSARY REPAIRS AND OTHER MATTERS

           To permit the Landlord and its agents with all necessary workmen
           materials and appliances at all reasonable times following a
           reasonable period of prior written notice (or at any time in case of
           emergency) to enter upon and examine the state of repair and
           condition of the demised premises and the user thereof and to take
           any photographs measurements plans and sections thereof and thereupon
           the Landlord may require the Tenant by notice in writing to carry out
           or do any repairs or redecorations or any other acts deeds or things
           necessary to be done and for which the Tenant is liable under these
           presents and if the Tenant shall not within two months or (in case of
           emergency) immediately after service of such notice commence and
           thereafter proceed diligently with compliance therewith then to
           permit the Landlord to enter upon the demised premises to do all or
           any of the things referred to in such notice and the proper cost
           thereof (which expression shall include but not be limited to all
           legal costs and surveyors' fees and other expenditure whatsoever
           attendant thereon) shall be paid by the Tenant within 30 days of a
           written demand and if not so paid the cost

<PAGE>

          aforesaid and interest thereon as hereinafter provided shall be a debt
          due to the Landlord from the Tenant and shall forthwith be recoverable
          by action.

2.20     ACCESS OF LANDLORD

           To permit the Landlord and its agents and other persons authorised by
           them with all necessary workmen materials and appliances at all
           reasonable times following a reasonable period of written notice (or
           at any time in case of emergency) to enter upon the demised premises
           for all or any of the following purposes namely:

2.20.1    taking inventories of landlord's fixtures and fittings therein;

2.20.2    effecting decorations repairs tests or works to adjoining or
          neighbouring property or tests to the demised premises or any matters
          acts or things which may be requisite under the provisions of this
          Lease or to comply with any Act of Parliament statutory instrument
          order building regulation or other regulation or local bye-law or
          otherwise and which cannot be carried out or is impractical to carry
          out at reasonable cost other than by entry on the demised premises,
          such works to be carried out as expeditiously as is reasonably
          practicable causing as little disturbance to the Tenant as is
          reasonably practicable and doing as little damage as may be to the
          demised premises and all damage thereby occasioned to the demised
          premises being made good or procured to be made good by the Landlord;

2.20.3    inspecting cleansing maintaining testing repairing altering laying
          fixing constructing renewing re-laying and connecting up to any
          conducting media used or to be used for or in connection with any
          adjoining or neighbouring property or for inspecting cleansing
          maintaining repairing altering renewing or removing anything being the
          property of the Landlord in or upon but not being part of the demised
          premises including (without prejudice to the generality of the
          foregoing) the plant room on the fourth floor of the Building and the
          plant therein contained and the sanitary and other installations
          within the washroom areas on the fourth floor of the Building in
          respect of which the Tenant is granted exclusive rights of use such
          works to be carried out as expeditiously as reasonably practicable
          causing as little disturbance to the Tenant as is reasonably
          practicable and doing as little damage as may be to the demised
          premises and all damage thereby occasioned by the Landlord to the
          demised premises and to the Tenant's possessions and fittings being
          made good by the Landlord but without payment of compensation for any
          annoyance nuisance loss noise vibration or inconvenience caused as a
          result of the proper exercise of the Landlord's right of entry in
          accordance with the provisions of this clause;

2.20.4    carrying out the works and providing the services amenities and
          facilities referred to in the Third SCHEDULE hereto such works to be
          carried out as expeditiously as reasonably practicable causing as
          little disturbance to the Tenant as is reasonably practicable and
          doing as little damage as may be to the demised premises and all
          damage thereby occasioned by the Landlord to the demised premises and
          to the Tenant's possessions and fittings being made good by the
          Landlord but without payment of compensation for any annoyance
          nuisance loss noise vibration or inconvenience caused as a result of
          the proper exercise of the Landlord's right of entry in accordance
          with the provisions of this clause;

<PAGE>

2.20.5    carrying out any such works as are referred to in CLAUSE 5.2 hereof
          such works to be carried out as expeditiously as reasonably
          practicable causing as little disturbance to the Tenant as is
          reasonably practicable and doing as little damage as may be to the
          demised premises and all damage thereby occasioned by the Landlord to
          the demised premises and to the Tenant's possessions and fittings
          being made good by the Landlord but without payment of compensation
          for any annoyance nuisance loss noise vibration or inconvenience
          caused as a result of the proper exercise of the Landlord's right of
          entry in accordance with the provisions of this clause;

2.20.6    enabling prospective purchasers mortgagees or tenants of the Building
          or any part thereof and their agents to view the demised premises;

2.20.7    for any proper purpose connected with management of the Building; and

2.20.8    for all or any such purposes to erect scaffolding and/or other like
          apparatus and/or ladders and/or cradles and other like appliances or
          apparatus upon the demised premises or any part thereof or outside the
          demised premises provided that no such erections shall be made within
          the demised premises except where reasonably necessary provided that
          in the case of such works the landlord shall consult with the Tenant
          and if it would be reasonably possible to carry out such works in a
          manner preferred by the Tenant but which would involve the Landlord in
          extra costs or losses the Landlord shall at the Tenant's request use
          its reasonable endeavours to comply with the Tenant's requirements in
          which event the Tenant shall on demand pay to the Landlord the amount
          or amounts as certified from time to time by the Landlord's surveyor,
          architect or accountant (as the case may be) of the extra costs
          incurred or losses sustained by it as a result of such compliance.

2.21     ALIENATION

2.21.1   In this CLAUSE 1.21 the following expressions have the following
         meanings:

          (a)  "AUTHORISED GUARANTEE AGREEMENT"

          has the meaning defined in and for the purposes of section 16 of the
          Landlord and Tenant (Covenants) Act 1995 which shall be made by
          separate deed;

          (b)  "PERMITTED OCCUPIER"

          means a company which is a member of the same group of companies of
          which the Tenant is a member and meets the criteria set out in section
          42(1) of the Landlord and Tenant Act 1954.

2.21.2    Not to hold on trust for another or assign charge or underlet part
          with or share possession or occupation of the whole of the demised
          premises or any part or agree so to do or permit any person to occupy
          the same save (subject to this clause) by way of an assignment charge
          or underlease of the whole.

2.21.3    Not to assign charge or underlet the whole of the demised premises
          except as provided in this clause and then only with the prior written
          consent of the Landlord (such consent not to be unreasonably withheld
          or delayed and subject in the case of an assignment to sub-CLAUSEs
          1.21.4 and 1.21.5 and 1.21.6 and in the case of an underletting to
          sub-CLAUSEs 1.21.7-1.21.10 (inclusive)).

<PAGE>

2.21.4   ASSIGNMENT

          For the purpose of section 19(1A) of the Landlord and Tenant Act 1927
          it is agreed that the Landlord shall not be regarded as unreasonably
          withholding consent to any proposed assignment of the whole of the
          demised premises if it is withheld on the ground (and it is the case)
          that any one or more of the circumstances mentioned below exist
          (whether or not such withholding is solely on such ground or on that
          ground together with other grounds):

          (a)  in the Landlord's reasonable opinion the proposed assignee is not
               or will not be able to pay the Rents reserved by this Lease as
               and when they fall due and/or to observe and perform the
               obligations of the Tenant under this Lease and any Supplemental
               Document;

          (b)  there are arrears of the Rents reserved hereunder at the date of
               the application for the assignment to the proposed assignee
               and/or the proposed date for completion of the licence giving the
               Landlord's consent;

          (c)  the proposed assignee is a member of the same group of companies
               of which the Tenant is a member as defined in section 42(1) of
               the Landlord and Tenant Act 1954.

2.21.5   On any assignment:

          (a)  the Tenant and any Surety of the Tenant shall enter into an
               Authorised Guarantee Agreement which will be in such reasonable
               and proper form as the Landlord may reasonably require and be
               prepared by or on behalf of the Landlord and at the reasonable
               cost of the Tenant;

          (b)  if the Landlord reasonably so requires the Tenant will obtain one
               or more acceptable guarantors for the proposed assignee who will
               covenant with the Landlord in the terms (mutatis mutandis) set
               out in the Fifth SCHEDULE;

          (c)  if the Landlord reasonably so requires (taking account of the
               requirement for any guarantor) the proposed assignee will prior
               to the assignment enter into such reasonable rent deposit
               arrangement and/or provide such additional security for
               performance by the proposed assignee of its obligations under
               this Lease as the Landlord may reasonably require; and

          (d)  any guarantor of the Tenant's obligations shall enter into a
               guarantee (which shall be in such reasonable form as the Landlord
               may reasonably require) that the Tenant will comply with the
               Authorised Guarantee Agreement referred to in (a) above and
               indemnify the Landlord against any breach by the Tenant of the
               Authorised Guarantee Agreement.

2.21.6        Sub-CLAUSEs 1.21.4 and 1.21.5 shall operate without prejudice to
              the right of the Landlord to refuse such consent on any other
              reasonable ground or grounds where such refusal would be
              reasonable or to impose further reasonable conditions upon the
              grant of consent where such imposition would be reasonable.

<PAGE>

2.21.7   UNDERLETTING

          (a)  Not to underlet the whole of the demised premises at a fine or a
               premium or at a rent less than the open market rent of the
               demised premises in each case at the time of such underlease.

          (b)  Not to grant an underlease of the whole of the demised premises
               until the Landlord has given its approval of an order of a court
               of competent jurisdiction made under section 38(4) of the
               Landlord and Tenant Act 1954 authorising an agreement excluding
               sections 24 to 28 (inclusive) from the tenancy to be created by
               the underlease. The Tenant shall supply the Landlord with a copy
               of the order (with the form of underlease) certified by
               solicitors as a true copy of the original for this purpose.

2.21.8        Upon the Landlord consenting to an underletting of the whole of
              the demised premises to procure that the underlease contains:

          (a)  an unqualified covenant on the part of the undertenant with the
               Tenant that the undertenant will not assign or charge (or agree
               so to do) any part or parts of the premises (as distinct from the
               whole) demised by such underlease and will not underlet or (save
               by way of an assignment of the whole) part with or agree so to do
               or share possession of or permit any person to occupy the whole
               or any part of the premises demised by such underlease;

          (b)  a covenant on the part of the undertenant with the Tenant that
               the undertenant will not assign or charge (or agree so to do) the
               whole of the premises demised by such underlease without the
               previous consent in writing of the Landlord such consent not to
               be unreasonably withheld or delayed;

          (c)  a covenant by the undertenant (which the Tenant undertakes to
               enforce) to prohibit the undertenant from doing or suffering any
               act or thing upon or in relation to the premises demised by the
               underlease which will contravene any of the Tenant's obligations
               in this Lease;

          (d)  provision for review of the rent (in an upwards direction only)
               reserved by the underlease corresponding both as to terms and
               dates with the provisions set out in CLAUSE 2; and

          (e)  a condition for re-entry on breach of any covenant on the part of
               the undertenant or any other ground in respect of the undertenant
               specified in CLAUSE 5.3.

2.21.9    To procure in any underletting of the whole of the demised premises
          that the rent under such underletting is reviewed in accordance with
          the terms of such review but not to agree the rent payable under such
          underlease with the undertenant without the prior written consent of
          the Landlord (such consent not to be unreasonably withheld or delayed)
          and to procure that if the rent under any underlease is to be
          determined by an independent person not to determine whether such
          person is to act as an expert or as an arbitrator without the
          Landlord's prior written consent and to procure that the Landlord's
          representations as to the rent payable thereunder are made to such
          independent person to the reasonable satisfaction of the Landlord.

 2.21.10  Not to vary the terms of any underlease permitted under this clause
          (or agree so to do) without the Landlord's prior written consent (such
          consent not to be unreasonably

<PAGE>

          withheld or delayed) and not to commute or waive any rents payable by
          any such underlease.

2.21.11   Notwithstanding anything contained in this clause the Tenant may share
          occupation of the demised premises with a Permitted Occupier provided
          that:

          (a)  no tenancy is created by such occupation;

          (b)  the rights of the Permitted Occupier immediately determine on it
               ceasing to fall within the definition of a Permitted Occupier;
               and

          (c)  the Tenant will give notice to the Landlord within 14 days of the
               commencement and termination of each sharing of occupation of the
               demised premises.

2.21.12   From time to time during the Term to furnish to the Landlord on demand
          full particulars of all derivative interests of or in the demised
          premises however remote or inferior.

2.22     REGISTRATION

          Within one month after any assignment of this Lease or the grant of
          any underlease or sub-underlease (whether mediate or immediate) or the
          assignment of any such underlease or sub-underlease or after any
          disposition or devolution of the demised premises or any part thereof
          or after any Order of Court or private or local Act of Parliament
          affecting the demised premises or any part thereof to give notice
          thereof in writing to the Landlord or the solicitors for the time
          being of the Landlord and to produce to the Landlord or its said
          Solicitors the relevant deed or instrument and on giving such notice
          to pay a reasonable fee being not less than Thirty Five Pounds
          ((GBP)35) plus value added tax for the registration thereof.

2.23     NOTICES UNDER SECTION 146 OF THE LAW OF PROPERTY ACT 1925

          To pay on demand all proper costs and expenses (including solicitors'
          costs and surveyors' fees) incurred by the Landlord in reference to
          any breach giving rise to right of re-entry under the provisions in
          that behalf hereinafter contained whether or not forfeiture is waived
          or avoided and whether or not by relief granted by the Court and also
          to pay on demand the like costs and expenses of any requisite notice
          relating to the repair or redecoration of the demised premises in
          connection with the delivery up thereof at the expiration or sooner
          determination of the said term.

2.24     NOTICE OF RE-LETTING

          Whether or not any notices have been served under the Landlord and
          Tenant Act 1954 to permit the Landlord at any time after a date six
          months before the expiration of the said term to affix and retain
          without interference upon any part of the exterior of the demised
          premises other than at any entrance to the demised premises a notice
          for re-letting the same and to permit persons accompanied by the
          Landlord or the agent of the Landlord at reasonable times of the day
          during business hours and following not less than 24 hours' prior
          written notice to view the demised premises.
<PAGE>

2.25     TO INFORM LANDLORD OF NOTICES RECEIVED

           Forthwith on receipt of notice to give full particulars in writing to
           the Landlord of any permission notice order or proposal for a notice
           or order made given or issued by any government department local or
           public authority under or by virtue of any statutory powers affecting
           or likely to affect the demised premises or any part thereof and if
           so required by the Landlord to produce a copy of such permission
           notice order or proposal for a notice or order to the Landlord and
           also where the notice concerns any matter for which the Tenant is
           responsible under the terms of this Lease without delay to take all
           necessary steps to comply with any such notice or order in so far as
           such notice or order concerns the demised premises.

2.26     TO DISCLOSE INFORMATION

           If the Tenant shall make any application to the Landlord for any
           consent or approval of the Landlord required under the terms of this
           Lease the Tenant shall also disclose such information as the Landlord
           shall properly require in relation to or incidental to or whatsoever
           or howsoever concerning or appertaining to such application.

2.27     TO PAY COSTS

           To pay the proper and reasonable legal charges and surveyors' fees
           and other professional fees incurred by or of the Landlord and the
           stamp duty on the licences and duplicates resulting from all
           applications by the Tenant for any consent or approval of the
           Landlord required by this Lease (whether in accordance with the
           express rights granted to the Tenant or otherwise) including
           reasonable and proper legal charges surveyors' fees and other
           professional fees and expenses actually incurred in cases where
           consent or approval is refused where the Landlord is entitled to
           refuse the same or the application is withdrawn.

2.28     TO PAY VALUE ADDED TAX

           To pay in addition to any monies due from the Tenant under the terms
           and provisions of this Lease at the respective times when such monies
           are due such value added tax as shall be chargeable in respect of any
           such monies subject to the Landlord having supplied to the Tenant a
           value added tax invoice.

2.29     COSTS OF BAILIFFS ETC.

           To pay to the Landlord on demand all proper costs charges and
           expenses including bailiffs' costs solicitors' costs surveyors' fees
           and other professional costs and fees properly incurred by the
           Landlord for or in connection with the levy of a distress for the
           rents payable hereunder or any part thereof or as a result of the
           bailiffs being paid the said rents or any part thereof whether or not
           any distress in the event be levied or otherwise for or in connection
           with the recovery of arrears of the said rents or other monies
           payable by the Tenant hereunder.

2.30     INTEREST ON OVERDUE PAYMENTS

           If and so often as any rent (whether formally demanded or not) or any
           other money due from the Tenant under the provisions of this Lease
           shall be unpaid seven days (7) following the

<PAGE>

           due date on demand from the Landlord to pay interest on such unpaid
           rent and other unpaid monies from the due date until payment (whether
           before or after judgment) at the rate of four per cent per annum
           above the base rate of HSBC Bank plc (or such other London clearing
           bank as the Landlord may from time to time nominate) in force at the
           due date or such rate as shall at the due date be equivalent thereto.

2.31     RESPONSIBILITY FOR DAMAGE

           To be responsible for and to indemnify the Landlord against all
           damage occasioned to the demised premises or any adjacent or
           neighbouring property including the Building or the services thereof
           or to any person or chattel (whether or not upon the demised
           premises) caused by any act default or negligence of the Tenant or
           the servants agents licensees or invitees of the Tenant.

2.32     YIELDING UP

           To yield up the demised premises (but not with trade and other
           tenant's fixtures) with vacant possession at the end or sooner
           determination of the tenancy hereby created in good and substantial
           repair and condition in accordance with the covenants hereinbefore
           contained.

3.       RENT REVIEW

       Provided always and it is hereby agreed:

3.1        After the expiration of each period of five years of the tenancy
           hereby created (the time in each case being computed from and
           including the commencement date and the day following the date of
           expiration of each such period being hereinafter referred to as the
           "RELEVANT DATE OF REVIEW") the first yearly rent shall be (subject as
           hereinafter provided) such sum (hereinafter called "THE SAID SUM") as
           shall be agreed between the Landlord and the Tenant (or decided by
           the competent person as hereinafter provided) as representing the
           open market annual rent at which the demised premises could be let at
           the relevant date of review on a lease:

3.1.1      for a term of ten (10) years commencing on the relevant date of
           review;

3.1.2      as between a willing landlord and a willing tenant;

3.1.3      with vacant possession;

3.1.4      without the payment of any fine or premium;

3.1.5      upon the suppositions (whether or not fact) that:

          (a)  the Landlord and the Tenant have respectively complied with their
               obligations herein imposed on them (but without prejudice to any
               rights or remedies of the Landlord in regard thereto);

          (b)  the demised premises are available for immediate beneficial
               occupation and use;

          (c)  no work has been carried out thereon by the Tenant or any
               undertenant whether before or after the commencement date (other
               than pursuant to an obligation to the Landlord contained in this
               Lease save where such obligation arises as a result of

<PAGE>

               any works to the demised premises carried out by the Tenant)
               which has diminished the rental value of the demised premises;
               and

          (d)  if the Building or any part thereof or any amenity thereto
               belonging or any access thereto shall have been damaged or
               destroyed the same had before the relevant date of review been
               fully reinstated;

          (e)  that the willing tenant has had the benefit of any rent free or
               concessionary rent period which would be granted for the purposes
               of fitting out at the relevant date of review in the open market
               on a letting of the demised premises on the terms of this
               hypothetical letting so that the said sum shall represent the
               rent which would be reserved as payable at the expiry of such a
               period; and

          (f)  the demised premises are fitted out with floor boxes and
               carpeting to the specification and quality commensurate with
               those in the remainder of the lettable areas of the Building;

3.1.6          on the terms and conditions of this Lease (other than as to the
               amount of rent but including provisions for review) and upon the
               assumption that the demised premises may be used for the purposes
               permitted by this Lease of this Lease including the provisions of
               this CLAUSE there being disregarded:

          (a)  any goodwill attributable to the demised premises by reason of
               any trade or business carried on therein by the Tenant or any
               permitted undertenant;

          (b)  any effect on rent of any improvements or alterations to the
               demised premises carried out not more than fifteen (15) years
               before the relevant date of review by the Tenant or any
               undertenant with the consent of the Landlord (where required)
               other than any such effected at the expense of the Landlord or in
               pursuance of any obligation to the Landlord whether under the
               provisions of this Lease or any other deed or document;

          (c)  any effect on rent of the fact that the Tenant or its
               predecessors in title have been in occupation of the demised
               premises or any other premises within the Building or near
               thereto;

          (d)  any effect on rent of any rent free period or rental concession
               that may have been granted at the commencement of the term for
               fitting out the demised premises;

          (e)  any effect on rent of any temporary works operations or other
               activities on any adjoining or neighbouring property (including
               the Building); and

          (f)  the taxable status of any party to this Lease for the purpose of
               value added tax or any other tax of a similar nature.

3.2        If the Landlord and the Tenant have not agreed on the amount of the
           said sum by a date six months before the relevant date of review then
           and in any such case the question may at any time after such date be
           referred by either of them to the decision of some competent person
           (hereinafter called "THE COMPETENT PERSON") who shall act as an
           arbitrator in accordance with the Arbitration Act 1996 to be agreed
           upon by the Landlord and by the Tenant or (in the event of failure so
           to agree) to be a Chartered Surveyor with substantial experience of
           lettings of office premises in the area in which the demised premises
           are situate (or as near thereto as is reasonably possible) and whose
           status shall be that of a partner in or a director of a commercial
           practice which in the normal course of its business handles the
           letting of

<PAGE>

          office premises in Central London such Chartered Surveyor (in the
          event of disagreement between the parties as to who he or she shall
          be) to be nominated on the application of the Landlord or the Tenant
          by the President for the time being of the Royal Institution of
          Chartered Surveyors provided that if the competent person shall die or
          for another reason shall be unable to act before he shall give his
          decision then the Landlord and the Tenant shall agree upon another
          competent person or (in the event of failure so to agree) the
          President of the Royal Institution of Chartered Surveyors shall be
          asked by either the Landlord or the Tenant to nominate another
          Chartered Surveyor with the aforesaid experience and status to act as
          the competent person and such procedure may be adopted as often as may
          be necessary.

3.3      DEFINITIONS

3.3.1     In this sub-CLAUSE the following expressions have the following
          meanings:

       "THE DUE DATE"

                     means the date when the amount of the first yearly rent
                     payable hereunder with effect from the relevant date of
                     review has been agreed or otherwise decided as evidenced by
                     an exchange of memoranda pursuant to sub-CLAUSE 2.6;

       "THE INTERIM PERIOD"

                     means the period commencing on the relevant date of review
                     and ending on the day preceding the payment day which
                     immediately follows the due date;

       "THE OLD RATE"

                     means the yearly amount of such rent reserved as payable
                     hereunder immediately before the relevant date of review;

       "THE NEW RATE"

                     means the yearly amount of such rent reserved as payable
                     hereunder with effect from and including the relevant date
                     of review;

       "THE BALANCE"

                     means the amount (if any) by which such rent calculated at
                     the new rate and apportioned in respect of the interim
                     period exceeds the amount of such rent calculated at the
                     old rate and apportioned in respect of the interim period;

       "THE PRESCRIBED RATE"

                     means the base rate of HSBC Bank plc (or such other London
                     clearing bank as the Landlord may from time to time
                     nominate) in force at the due date.

3.3.2     If the new rate has not been agreed or otherwise decided by the
          relevant date of review:

          (a)  the first yearly rent shall continue to be payable at the old
               rate; and

          (b)  on the due date the Tenant shall pay to the Landlord the Balance
               and interest at the prescribed rate computed from and including
               each quarter day respectively on so

<PAGE>

               much of the Balance as would have become payable on such quarter
               day and ending on the due date.

3.4        If the said sum shall be decided by the competent person and the
           Tenant shall fail to pay promptly its due proportion of the costs of
           such decision the Landlord shall be at liberty to discharge such
           proportion and in such event the Tenant shall within 30 days of a
           demand therefor pay to the Landlord that proportion.

3.5        Provided always that in no event shall the first yearly rent reserved
           as payable by the Tenant to the Landlord from and including the
           relevant date of review be less than the first yearly rent reserved
           as payable by the Tenant to the Landlord immediately before such
           relevant date of review.

3.6        When the amount of the first yearly rent payable from and including
           the relevant date of review has been agreed or determined as
           aforesaid a memorandum as to that amount shall within 30 days thereof
           be signed on behalf of the Landlord and of the Tenant and exchanged
           between them.

3.7        Where any statutory public local or other competent authority or
           court of competent jurisdiction shall impose any restrictions which
           operate to impose any limitation in relation to the review of the
           rent firstly reserved or the collection of any increase in the rent
           firstly reserved at the relevant date of review the Landlord may
           (whether or not the rent firstly reserved has been agreed or
           determined with effect from that review date) give to the Tenant at
           any time but not later than three months after such review date
           notice postponing that review date until such later date (being not
           later than the next following date of review) as shall be six months
           after the date when such restriction or limitation shall be lifted or
           shall have come to an end and in that event the rent firstly reserved
           as payable immediately prior to the relevant date of review that is
           postponed shall (notwithstanding any review that may have taken place
           as at that review date) continue to be the rent payable until
           increased upon review at the postponed or (as the case may be) a
           subsequent review date.

3.8      Time shall not be of the essence in respect of this CLAUSE 2.

4.       LANDLORD'S COVENANTS

         The Landlord hereby covenants with the Tenant as follows:

4.1      REPAIR

           To keep the structure of the Building and in particular the
           foundations walls floors slabs (or joists as the case may be) and
           roofs thereof and all structural parts of the Building and the
           entrance hall landings passages stairs lifts (if any) escalators (if
           any) lavatories toilet facilities conveniences and all plant and
           machinery and conducting media intended for the common use and
           service of the occupiers of the Building and the exterior of the
           demised premises (except the glass in the exterior windows of the
           demised premises and of other parts of the Building demised to any
           other tenant of the Landlord) and the parts of the demised premises
           referred to in sub-CLAUSE 1.3.3 in good and substantial repair and
           condition.
<PAGE>

4.2      SERVICES

           Unless prevented by force majeure or other circumstances beyond the
           reasonable control of the Landlord to use all reasonable endeavours:

4.2.1         to keep the entrance hall landings passages stairs lifts (if any)
              escalators (if any) lavatories and toilet facilities of the
              Building (save those hereby demised or demised to any other tenant
              of the Landlord) clean;

4.2.2         to keep the same properly lit (when necessary) between the
              following hours (hereinafter called "THE AUTHORISED HOURS")
              namely 8.00 a.m. and 7.00 p.m. on Mondays to Fridays inclusive
              and 8.00 a.m. and 1.00 p.m. on Saturdays (public holidays
              excepted);

4.2.3         at all times during the authorised hours to supply hot water to
              the wash basins in the lavatories of the Building;

4.2.4         at all times during the authorised hours to supply heating and
              cooling to the demised premises by means of the air conditioning
              apparatus therein served by the Landlord's heating and chilling
              plant in the Building;

4.2.5         to provide the services referred to in PARAGRAPHs 2, 3.2, 3.5, 4,
              5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 17 (except the last 12 words
              thereof), 19 and 20 of PART II of the Third SCHEDULE; and

4.2.6         at the written request of the Tenant and on reasonable (to the
              Landlord) prior written notice to supply any of the services
              referred to in CLAUSEs 3.2, 3.3 and 3.4 outside the authorised
              hours subject to the Tenant bearing the cost to the Landlord of
              supplying the services requested outside the authorised hours.

4.3      INSURANCE

           To keep the Building insured (subject to such exclusions and
           limitations as are imposed by the insurers) against loss or damage by
           fire lightning explosion storm tempest flood earthquake impact riot
           civil commotion malicious damage and aircraft and any other risk
           required by the Landlord in some insurance office of repute in a sum
           which in the opinion of the Landlord's surveyor represents the full
           reinstatement value thereof AND three (3) years' loss of Rents from
           the Buildings together with architects' surveyors' engineers' legal
           and other consultants' fees making such allowance as such surveyor
           thinks fit for:

4.3.1         inflation during the period of insurance and the re-planning and
              reinstatement period; and

4.3.2         the cost of complying with any statutory or public authority
              requirements which might apply on reinstatement;

           provided always that the Landlord shall not be obliged to insure any
           fixtures or fittings which may be installed by the Tenant or any
           person deriving title under the Tenant and which may become
           landlord's fixtures and fittings until the Tenant has notified the
           Landlord in writing of the reinstatement value thereof (but so that
           the Landlord may from time to time at its discretion increase the
           amount of the insurance in respect of such fixtures and fittings) and
           provided further that the Tenant shall once in every 12 months on
           reasonable request be entitled to be provided with a copy or
           sufficient extracts from such policy affecting the demised premises
           as will enable the Tenant to know the full extent of the premises
           fixtures

<PAGE>

           and fittings covered thereby the risks insured against and any
           exceptions conditions exclusions or limitations to which such
           policy is subject.

4.4      REINSTATEMENT

           Following damage or destruction of the Building or any part thereof
           or the Common Parts (defined in PART I of the Third SCHEDULE) over
           which the Tenant has rights of way or which the Tenant is hereby
           authorised to use by a peril against which the same are insured
           pursuant to the provisions of the preceding sub-CLAUSE 3.3 and
           subject to the provisions of CLAUSE 1.9.2 if the Landlord obtains all
           necessary planning permissions and other consents (which the Landlord
           shall use all reasonable endeavours to obtain) to rebuild and
           reinstate in accordance with the then existing bye-laws regulations
           and requirements by any competent authority then the Landlord shall
           with all due speed and diligence (provided always that the Landlord
           shall not be liable to make up any deficiency in the insurance monies
           in accordance with the covenant on its part herein arising from or
           attributable to any failure by the Tenant to comply with any of the
           obligations on its part (which has not been reimbursed by the Tenant)
           and provided further that as regards any fixtures and fittings which
           have been installed by the Tenant or by any person deriving title
           under the Tenant and which have become landlord's fixtures and
           fittings the Landlord shall only be liable to reinstate or repair the
           same after the reinstatement value thereof has been notified by the
           Tenant to the Landlord and such fixtures and fittings have been
           insured by the Landlord as mentioned in the preceding sub-CLAUSE 3.3
           of this clause.

4.5      QUIET ENJOYMENT

           That the Tenant paying the said rents hereby reserved and performing
           and observing the covenants on the Tenant's part herein contained
           shall quietly hold and enjoy the demised premises during the term
           without interruption by the Landlord or any person rightfully
           claiming under the Landlord.

4.6      COMPLIANCE WITH REQUIREMENTS

           That wherever any right of entry is exercised by the Landlord or any
           other person in accordance with the rights reserved to the landlord
           in the Second SCHEDULE the Landlord will (subject to receiving
           reasonable prior written notice) ensure that the person exercising
           such rights will at the Tenant's cost comply (in so far as reasonably
           practicable) with the Tenant's reasonable requirements regarding the
           security of the demised premises and anything on the demised
           premises.

4.7      To comply with the provisions of CLAUSE 1.20 of this Lease.

5.       SURETY COVENANT

        The Surety hereby covenants with the Landlord in the terms of the
        Fifth SCHEDULE.

6.       Provided always and it is hereby agreed by and between the parties
         hereto as follows:
<PAGE>

6.1       LANDLORD'S DISCLAIMER

          Notwithstanding anything herein contained and unless due to the
          negligence or default of the Landlord or its servants and save to the
          extent that the Landlord may be liable under the provisions of the
          Defective Premises Act 1972 or may be covered by any policy of
          insurance effected by the Landlord the Landlord shall not be
          responsible to the Tenant or the Tenant's licensees servants agents
          or other persons in the demised premises or calling upon the Tenant
          or the demised premises for any accident or happening or damage to or
          loss of any chattel or property sustained in the Building or on any
          property over which the Tenant exercises rights nor for any loss or
          inconvenience occasioned by:

6.1.1         the closing for repairs or other purposes of the lifts or the
              Common Parts (as in PART I of the Third SCHEDULE hereto defined)
              or any part thereof;

6.1.2         any defects or failure in the said lifts or in the sprinkler
              system (if any) or in the hot and cold water supply or in the
              heating cooling or ventilating apparatus (if any) or in the
              lighting or in the conducting media (whether of or in the demised
              premises or otherwise); or

6.1.3         suitable fuel or power not being obtainable through any
              appropriate source of supply (owing to strikes lock-outs or other
              causes) provided always that the Landlord shall:

               (i)  carry out any necessary repairs and maintenance as
                    expeditiously as reasonably practicable; and

               (ii) ensure that at all times during the authorised hours the
                    Tenant has reasonably acceptable use of all of the Common
                    parts and Services to be supplied to the Tenant in
                    accordance with the Landlord's covenants,

              provided always that the Landlord shall not have any liability to
              the Tenant as a result of this provision if any of the Services or
              the Common Parts shall not be available due to force majeure
              events or to circumstances beyond the reasonable control of the
              Landlord.

6.2        ALTERATIONS BY LANDLORD

           The Landlord shall be entitled from time to time to make such
           alterations additions or substitutions in or to the Building or to
           any part thereof or any plant or apparatus in the Building or the
           conducting media or the Common Parts (as in PART I of the Third
           SCHEDULE hereto defined) as it shall think fit provided that plant or
           apparatus or conducting media or Common Parts (aforesaid) shall
           remain available for use by the Tenant during the authorised hours
           and in respect of any new plant apparatus conducting media and Common
           Parts provided for such use in substitution for those previously
           available the same shall be substantially no less suitable for the
           enjoyment of the demised premises and further provided that the
           Landlord shall in carrying out such works cause as little
           inconvenience to the Tenant as is reasonably practicable and make
           good any damage caused to the demised premises.

6.3        RE-ENTRY

           If the rents hereby reserved or any part thereof shall at any time be
           unpaid for 21 days after becoming payable (whether formally demanded
           or not) or if any of the covenants on the part

<PAGE>

          of the Tenant herein contained shall not be performed or observed or
          if the Tenant (being an individual or being individuals any one of
          them) shall become bankrupt or if the Tenant (being a company) shall
          enter into liquidation whether compulsory or voluntary (save for the
          purpose of amalgamation or reconstruction of a solvent company) or if
          an Administrator an Administrative Receiver a Receiver or a Receiver
          and Manager shall be appointed of its undertaking or if the Tenant for
          the time being shall enter into an agreement or make any arrangement
          with creditors for liquidation of the debts of the Tenant by
          composition or otherwise or suffer any distress or process of
          execution to be levied on the goods of the Tenant then and in any such
          case it shall be lawful for the Landlord at any time thereafter to
          re-enter upon the demised premises or any part thereof in the name of
          the whole and thereupon this demise shall absolutely determine but
          without prejudice to the right of action of the Landlord in respect of
          any antecedent breach of any of the covenants on the part of the
          Tenant herein contained.

6.4      LANDLORD'S SERVANTS OR WORKMEN

          The servants or workmen of the Landlord shall be under no obligation
          attend or to provide for other use his or their services to the
          Tenant for the Tenant's private convenience or to accept delivery of
          any letters telegrams telephone calls messages or parcels addressed
          to the Tenant and any such furnishing of attendance or other use of
          services or the acceptance of such letters telegrams telephone calls
          messages or parcels is to be considered as rendered and accepted by
          any employee of the Landlord as the servant of the Tenant and the
          Landlord shall not be liable for and no claim shall be made against
          it for any loss or damage arising out of or in consequence of such
          furnishing of attendance or other use of services or acceptance of
          any such letters telegrams telephone calls messages or parcels as
          aforesaid.

6.5      CESSER OF RENT

          If the demised premises or any part thereof or the access thereto
          shall at any time during the said term be rendered unfit for
          occupation or use as the result of a peril against which the demised
          premises is insured pursuant to the covenant on the part of the
          Landlord hereinbefore contained the rent firstly and secondly
          reserved and for the time being reserved as payable hereunder or a
          fair proportion thereof according to the nature and extent of the
          damage sustained shall be suspended until the demised premises shall
          again be rendered fit for occupation or use or until the expiration
          of the period for which loss of rent insurance (if any) is payable
          whichever shall first occur provided that there shall be no cesser of
          rent to the extent that any insurance policy effected by the Landlord
          shall have been rendered void or voidable in whole or in part by the
          act or default of the Tenant or any person deriving title under the
          Tenant or any of the servants or agents of the Tenant or of any such
          person provided further that if the Building shall be so damaged as
          to necessitate demolition or reconstruction and if at the expiration
          of two years and nine months after the date of such damage or
          destruction the Landlord has not commenced such rebuilding or
          reconstruction the Landlord or the Tenant shall be entitled on giving
          to the other not less than three months' previous notice in writing
          to determine the term hereby granted and at the expiration of such
          notice this Lease and everything herein contained shall cease and be
          void (save in respect of any liability for antecedent breach or
          breaches although further provided that the Tenant shall have no
          liability for dilapidations in such circumstances) and the Tenant
          shall not be entitled to any compensation except that (if any)
          payable under the

<PAGE>

          provisions of the Landlord and Tenant Act 1954 provided also that any
          dispute as to the proportion (if any) of rent which should be
          suspended or as to the period of such suspension which may arise under
          this sub-clause shall be referred to the decision of some competent
          person (acting as an arbitrator) to be agreed upon by the Landlord and
          by the Tenant or (in the event of failure so to agree) to be nominated
          on the application of the Landlord or the Tenant by the President for
          the time being of the Royal Institution of Chartered Surveyors.

6.6      LANDLORD FREE TO DEAL WITH ADJOINING AND NEIGHBOURING PROPERTY

           The Tenant shall not be entitled to any right of light or air which
           will interfere with the free use of any land or buildings adjoining
           or neighbouring the demised premises for building or other purposes.

6.7      TENANT UNABLE TO ENFORCE SIMILAR COVENANTS IN ADJOINING PROPERTY ETC.

6.7.1         Nothing herein contained shall confer on the Tenant any right to
              the benefit of or to enforce any covenant or agreement contained
              in any lease or other instrument relating to any other property
              belonging to the Landlord.

6.7.2         Each of the Tenant's covenants herein contained shall remain in
              full force both at law and in equity notwithstanding that the
              Landlord shall have waived or released temporarily or permanently
              revocably or irrevocably or otherwise howsoever a similar covenant
              or similar covenants affecting adjoining or neighbouring premises
              of the Landlord.

6.8      LANDLORD CAN CHARGE FOR WORK DONE BY IT

           If and so often as the Tenant shall be obliged under the terms hereof
           to reimburse the Landlord any costs charges and expenses (all such
           costs charges and expenses shall be reasonable and proper) incurred
           by it including solicitors' costs and surveyors' fees and other
           professional costs and fees then in respect of any work done by the
           Landlord or by any person connected with it or by any person employed
           by it and who is qualified to carry out such work the Landlord shall
           be deemed to have incurred or suffered in respect thereof a
           reasonable fee cost or expense not exceeding that which might
           properly have been charged or incurred for the same work by an
           independent person to deal with that work in the ordinary course of
           his business.

6.9      SERVICE OF NOTICES

           Section 196 of the Law of Property Act 1925 applies to any notice
           served pursuant to this Lease save that any notices to be served upon
           the Landlord shall be served (until further notice) c/o Reit Asset
           Management Limited, 5 Wigmore Street, London W1H 0DL and copied on
           the day of service to its solicitors Nabarro Nathanson, Lacon House,
           Theobalds Road, London WC1X 8RW (Ref JPM) and any notices to be
           served upon the Tenant shall be deemed to have been sufficiently
           served if served upon the demised premises.
<PAGE>

6.10     STATUTORY MODIFICATIONS

           Any reference to any statute or any section thereof includes any
           amendment modification consolidation or re-enactment thereof and any
           statutory instrument or regulation made thereunder for the time being
           in force.

6.11     PROPER LAW AND JURISDICTION

6.11.1        The proper law of this Lease is English Law and except as set
              forth in sub-CLAUSE 5.11.2 below jurisdiction shall be exclusively
              limited to the courts of England and Wales with any action brought
              in such courts to be brought in the Royal Courts of Justice London
              or if appropriate a county court. The Landlord and the Tenant
              hereby agree declare and irrevocably consent that such courts are
              in all respects convenient as a forum for the exercise of
              jurisdiction in respect of this Lease and the Landlord and the
              Tenant each irrevocably submits to the jurisdiction of such
              courts.

6.11.2        Without prejudice to the provisions of sub-CLAUSE 5.11.1 above the
              Landlord shall have (and nothing herein shall limit) the right to
              institute or pursue any action or proceedings to enforce and/or
              obtain registration recognition and/or execution of any judgment
              in the same or any other jurisdiction in the world (whether within
              or without the jurisdiction in which such judgment is obtained).

7.     Wherever there are two or more persons included in the expression
       "Tenant" then any covenants by the Tenant shall be deemed to be made by
       each such person severally and by all such persons jointly and by every
       two or more of such persons jointly.

8.     The expression "conducting media" shall where the context so requires
       mean all or any sewers drains conduits gutters channels watercourses
       pipes cables wires ducts and mains and apparatus associated therewith and
       all equipment and fittings ancillary thereto.

9.     The sub-headings herein are inserted for convenience of reference only
       and shall not in any way affect the construction meaning or effect of
       anything herein contained or govern the rights and liabilities of the
       parties hereto.

10.    References to any statute herein contained shall be deemed to refer to
       any statutory modification or re-enactment thereof for the time being in
       force.

11.      TENANT'S OPTION TO DETERMINE

11.1      In this clause "TERMINATION DATE" means[ at the end of the tenth year]
          2000.

11.2      Subject to the pre-conditions in CLAUSE 10.3 being satisfied on the
          Termination Date, the Tenant may determine the term on the Termination
          Date by giving the Landlord not less than six (6) months' written
          notice. The term will then determine on the Termination Date, but
          without prejudice to any rights of either party against the other for
          any antecedent breach of its obligations under this Lease.

11.3      The only pre-condition is that:

11.3.1    vacant possession of the whole of the demised premises is given to the
          Landlord; and

<PAGE>

11.3.2    all Rent and other ascertainable sums due under this Lease up to the
          Termination Date have been paid in full.

11.4      The Landlord may waive any of the pre-conditions set out in CLAUSE
          10.3 at any time before the Termination Date by written notice to the
          Tenant .

11.5      Time will be of the essence for the purposes of this clause.

12.   CERTIFICATE

        It is certified that there is no agreement for lease to which this
        deed gives effect.

13.      CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999

14.      Unless expressly stated nothing in this lease will create any rights
         in favour of any person pursuant to the Contracts (Rights Of Third
         Parties) Act 1999.

This Deed remains undelivered until the date hereof.

IN WITNESS whereof the Landlord and Tenant have caused their Common Seals to be
hereunto affixed the day and year first above written.

                                 FIRST SCHEDULE

                          Rights granted to the Tenant

15.    The right for the Tenant and persons authorised by the Tenant (in common
       with others having a like right):

15.1       of passage and running of water soil gas electricity and of all other
           services or supplies as are now or shall hereafter during the term
           hereby granted be used by the demised premises through the conducting
           media passing through or under the adjoining or neighbouring property
           of the Landlord;

15.2       to use the entrance hall landings passages and stairs of the Building
           and the service roads and footpaths (if any) within the curtilage of
           the Building intended for the common use of the occupiers of the
           Building for the purpose of ingress and egress to and from the
           demised premises 24 hours a day seven days a week other than public
           holidays or where closure or interruption is permitted under this
           Lease or occurs due to force majeure events;

15.3       to use the lifts 24 hours a day seven days a week other than public
           holidays or where closure or interruption is permitted under this
           Lease or occurs due to force majeure events (save when the same have
           been taken out of service in accordance with the provisions of this
           Lease);

15.4       to install card or other access systems on all doors leading into the
           demised premises with the readers/controllers installed in the lift
           lobby areas near to such doors;

<PAGE>

15.5       with the prior written consent of the Landlord to adapt extend and
           alter the air conditioning plant and conducting media within the
           demised premises and within the plant rooms which exclusively serve
           the demised premises;

15.6     to install and thereafter display the corporate names and logos of:

15.6.1        the Tenant of the demised premises within the main entrance on the
              ground floor of the Building on the sign board provided or to be
              provided by the Landlord; and

15.6.2        the Tenant of the demised premises within the lift lobby areas of
              the eighth floor of the Building adjacent to the entrance doors to
              the demised premises,

15.7     support and shelter from the remaining rents of the Building;

                                 SECOND SCHEDULE

             Exceptions and reservations to the Landlord and others

16.    The right of free and uninterrupted passage and running of water soil gas
       electricity and of all other services or supplies as are now or hereafter
       to be used from and to adjoining or neighbouring property through such of
       the conducting media serving such adjoining or neighbouring property now
       or which may not later than whichever shall be the earlier of:

16.1     the expiration of the term hereby granted; and

16.2       the expiration of a period of eighty years from the date hereof
           (which is the perpetuity period applicable to this Lease) hereafter
           be in or upon the demised premises;

17.    the rights and liberties of entry upon the demised premises mentioned in
       the covenants by the Tenant herein contained;

18.    such rights of access to and entry upon the demised premises (including
       the right to erect and maintain scaffolding and other builders'
       equipment) as are referred to in CLAUSE 1.20 of this Lease;

19.    the right at any time and from time to time to open or authorise the
       opening of windows in any adjoining or neighbouring premises overlooking
       the demised premises;

20.    the right to affix lettering and signs to any part of the exterior of the
       Building other than the windows of the demised premises provided that the
       access of light to the windows of the demised premises be not thereby
       substantially reduced;

21.    the right to let any adjoining or neighbouring property for any office
       purpose;

22.    the full right of support shelter and protection and all other easements
       and rights now or hereafter belonging to or enjoyed by adjacent or
       neighbouring property or the Building; and

23.    the right to close temporarily for repairs or any other purposes the
       lifts in the Building the service roads and footpaths (if any) and any
       other areas within the curtilage of the Building any other part of the
       Building (whether or not forming part of the demised premises) which the
       Tenant is by virtue of this Lease authorised to use (whether in common
       with others or not) but subject to the provisions of CLAUSEs 3.1 and 3.2
       of this Lease.

<PAGE>

                                 THIRD SCHEDULE

                                     PART I

                               The service charge

24. In these presents the following expressions shall have the meanings assigned
    to them hereunder:

       "THE CERTIFICATE"

                     shall mean the Certificate specified in PARAGRAPH 3 of
                     PART I of THIS SCHEDULE;

       "THE COMMON PARTS"

                     shall mean the entrance hall landings passages stairs lifts
                     escalators lavatories and toilet facilities of the Building
                     (save those hereby demised or demised to any other tenant
                     of the Landlord) all other parts of the Building (including
                     the car parks (if any) within the Building) intended for
                     the common use and service of occupiers of the Building all
                     the car parks (if any) not within the Building but within
                     the curtilage thereof the service roads footpaths and
                     access ways and all other open areas within the curtilage
                     of the Building and all parts of the Building and all other
                     buildings within the curtilage of the Building exclusively
                     used by the Landlord in connection with the running
                     maintenance repair and management of the Building;

       "THE FINAL PERIOD"

                     shall mean the period commencing on the first day of the
                     last Service Charge Period hereunder and ending on the last
                     day of the tenancy hereby granted;

       "THE INITIAL PERIOD"

                     shall mean the period commencing on the date hereof and
                     ending on the last day of the Service Charge Period in
                     which such date falls;

       "SERVICE CHARGE PERIOD"

                     shall mean the Initial Period and the Final Period (as
                     hereinafter defined) and shall also mean:

                    (i)  each period of one year commencing on 1 January in
                         every year; or

                    (ii) such other period during the tenancy hereby created
                         (not exceeding one year) as the Landlord may from time
                         to time determined by notice in writing given to the
                         Tenant;

       "THE TENANT'S PROPORTION"

                     shall mean a fair proportion (to be conclusively determined
                     by the Landlord's surveyor (save in case of manifest
                     error)) of the Total Cost of Services (as hereunder
                     defined) and in determining the Tenant's proportion the
                     Landlord's Surveyor shall have regard to:

                    (iii) whether the Tenant receives any benefit from any
                          particular service; and

<PAGE>

(iv) subject to:

                            (a)     any adjustment required under (i); and

                            (b)     where it is appropriate in the Landlord's
                                    Surveyor's opinion so to do, the proportion
                                    which the net lettable internal area of the
                                    demised premises bears to the aggregate net
                                    lettable internal area of the Building;

       "THE TOTAL COST OF SERVICES"

                     shall mean the aggregate of:

                     (a)    the total cost to the Landlord in the Service Charge
                            Period to which the Certificate relates of complying
                            with the covenants contained in CLAUSEs 3.1 and 3.2
                            hereof and (without prejudice to the generality of
                            the foregoing) repairing and maintaining the
                            Building (and such of the Common Parts as fall
                            outside the Building) including costs attributable
                            to the inspection and testing of the Building and
                            the Common Parts or any part or parts thereof but
                            excluding any costs attributable to:

                            (v)    repairs and maintenance for which the Tenant
                                   is responsible under the covenants on the
                                   part of the Tenant hereinbefore contained;
                                   and

                            (vi)   the repair and maintenance of any other suite
                                   or suites of offices in the Building let to
                                   any other tenant of the Landlord or occupied
                                   by the Landlord (other than for the sole
                                   purpose of the provision of services) and
                                   being repairs and maintenance for which the
                                   tenant or occupier is or would be responsible
                                   assuming the like responsibility for repair
                                   and maintenance on the part of such tenant as
                                   the Tenant has hereunder;

                     (b)    the total cost to the Landlord in the Service Charge
                            Period to which the Certificate relates of providing
                            services amenities and facilities for the whole of
                            the Building and the Common Parts as the Landlord
                            shall be entitled or obliged to supply in accordance
                            with the provisions of this Lease;

                     (c)    in particular (but without prejudice to the
                            generality of the foregoing) the total cost to the
                            Landlord in the Service Charge Period to which the
                            Certificate relates of the carrying out of all the
                            works providing the services amenities and
                            facilities and making the payments details whereof
                            are specified in PART II of THIS schedule to the
                            extent that the same are carried out provided or
                            made;

                     (d)    the reasonable and proper fees and expenses of any
                            managing agents employed by the Landlord for the
                            management of the Building (save for collection of
                            the rents firstly reserved) and such of the Common
                            Parts (if any) as do not form part of the Building
                            or (where the Landlord or its employees are directly
                            engaged in the management of the Building) a
                            reasonable and proper amount for management expenses
                            in the Service Charge Period to which the
                            Certificate relates;

                     (e)    the reasonable fees of the Chartered Accountant
                            hereinafter mentioned,
<PAGE>

       PROVIDED ALWAYS that there shall be excluded from the service charge
       costs any expenses costs outgoings or other expenditure relating to:

                            (i)    the provision of any of the services and
                                   costs relating to a period prior to the
                                   Tenant's occupation;

                            (ii)   the making good of damage caused by any of
                                   the risks insured against by the Landlord;

25.    The service charge for the period to which the Certificate relates shall
       be such a sum as shall be equal to the Tenant's proportion of the Total
       Cost of Services certified in the Certificate for that same period
       provided always that the service charge for the Initial Period or for the
       Final Period shall be that proportion of the Tenant's proportion of the
       Total Cost of Services certified on the Certificate for the relevant
       Service Charge Period as the number of days in the Initial Period or in
       the Final Period as the case may be bears to the number of days in the
       relevant Service Charge Period.

26.    The Total Cost of Services in each Service Charge Period shall as soon as
       practicable after the end of each Service Charge Period be certified by a
       Certificate signed by an independent Chartered Accountant to be appointed
       by the Landlord:

26.1   the Certificate shall show sub-totals for the individual heads of
       expenditure comprised in the Total Cost of Services and shall incorporate
       a statement of the amount of the service charge payable by the Tenant for
       the Service Charge Period to which the Certificate relates;

26.2   the particulars certified and contained in the Certificate shall as to
       matters of fact be final and binding on the Tenant save in the case of
       manifest error and subject to the provisions of PARAGRAPH 7 of PART 1 of
       THIS SCHEDULE.

27.    On each usual quarter day in each calendar year the Tenant shall make a
       payment in advance and on account of the service charge. During the
       Initial Period the payments to be made on account by the Tenant shall be
       based on an estimated service charge at the rate of Twenty five thousand
       six hundred and thirty four pounds and thirty four pence
       ((GBP)25,634.34) for the first Service Charge Period hereunder and the
       first payment (apportioned in respect of the period commencing on the
       date hereof until the next following usual quarter day shall be paid on
       the execution hereof and each successive payment during the Initial
       Period shall be equal to one quarter of the annual rate of the said
       estimated service charge.

28.    In respect of each Service Charge Period subsequent to the Initial Period
       the Landlord's Surveyor shall prepare or cause to be prepared an estimate
       of the amount (hereinafter called "THE ESTIMATED SERVICE COST") of the
       Total Cost of Services for each such Service Charge Period having regard
       to all relevant circumstances and in particular to:

28.1.1 past levels of expenditure on routine or continuing services;

28.1.2 the scope of any works to the Building and the Common Parts which are
       then expected to be undertaken during the relevant Service Charge Period;

28.1.3 the likely effect of inflation on cost levels; and

28.1.4 the amount which the Landlord's surveyor considers or is advised to be
       appropriate to allow in respect of contingencies.
<PAGE>

28.2   Before payment on account of the service charge shall fall due in respect
       of any Service Charge Period subsequent to the Initial Period the Tenant
       shall be supplied with a statement showing the Estimated Service Cost for
       that Service Charge Period with sub-totals for each individual head of
       expenditure.

28.3   Neither the Estimated Service Cost nor anything contained in any
       statement showing an Estimated Service Cost shall in any way limit the
       Landlord's right to recover from the Tenant the Tenant's proportion of
       the Total Cost of Services when the relevant Certificate is issued or
       operate to limit the Landlord's discretion in so far as provided in this
       Lease as to the works which are to be carried out or the services
       amenities and facilities to be provided in the relevant Service Charge
       Period.

28.4   Subsequent to the Initial Period the payment to be made by the Tenant on
       each usual quarter day in advance and on account of the service charge
       (for the relevant Service Charge Period) shall be demanded by the
       Landlord and shall be one quarter of the Tenant's proportion of the
       Estimated Service Cost as shown on the statement thereof for the relevant
       Service Charge Period.

29.    If the amount of the service charge for a Service Charge Period shall
       exceed the aggregate of the sums paid on account in respect of that same
       Service Charge Period then within thirty days of the issue to the Tenant
       of:

29.1   the Certificate for the same Period; and

29.2   a demand for payment in that behalf,
       the Tenant shall pay to the Landlord the amount of that excess.

29.3   If the amount of the service charge for a Service Charge Period shall be
       less than the aggregate of the sums paid on account in respect of that
       same Service Charge Period then on the issue to the Tenant of the
       Certificate for that same Service Charge Period there shall be credited
       by the Landlord to the Tenant (or in the case of the Final Period paid by
       the Landlord to the Tenant) a sum equal to the difference between the
       amount of that service charge and the aggregate of the said sums paid on
       account.

30.1   If reasonably practicable the Landlord shall supply to the Tenant within
       seven working days of a written request any information reasonably
       required by the Tenant regarding any item of expense.

30.2   If the Tenant wishes to dispute the contents of any Certificate or of any
       statement of Estimated Service Cost the Tenant shall within whichever is
       the later of 28 days of service of the relevant Certificate or statement
       of Estimated Service Cost and 14 days after the supply of any information
       pursuant to a written request (time being of the essence for this
       purpose) give notice in writing to the Landlord stating the basis of the
       Tenant's objection thereto.

30.3   If within one month of the date of any such notice the Landlord and the
       Tenant have not reached agreement as to the sum due to the Landlord the
       matter shall upon the application of either of them be determined by a
       Chartered Surveyor of at least 10 years' standing (such Surveyor being
       hereinafter called "THE ARBITRATOR") who shall act as an arbitrator in

<PAGE>

       accordance with the Arbitration Act 1996 and shall be appointed by
       agreement between the Landlord and the Tenant or failing such agreement
       on the application of either the Landlord or the Tenant by the President
       of The Royal Institution of Chartered Surveyors and the fees of the
       Arbitrator shall be borne as directed by him.

30.4   Pending settlement of any dispute as aforesaid the Tenant shall not be
       entitled to withhold any payment demanded as aforesaid and any notice
       given by the Tenant to the Landlord shall be invalid unless the sum so
       demanded and any other moneys due to the Landlord have been paid when
       such notice is given.

30.5   The Tenant shall not be entitled unless the amount charged is manifestly
       excessive to object to any item of cost incurred by the Landlord in
       respect of the service charge on the ground that the same may have been
       provided or performed at a lower cost.

30.6   If following the determination by the Arbitrator the amount due to the
       Landlord shall be less than that demanded there shall be allowed to the
       Tenant on the payment day next following the date 14 days after the date
       of publication of the Arbitrator's decision an amount equal to any
       overpayment made by the Tenant and in the case of the Final Period the
       overpayment shall be paid by the Landlord to the Tenant.

                                     PART II

31.    Cleaning the Common Parts.

32.    Cleaning the exterior of the windows and skylights and other glassed
       areas of the Common Parts and the repair running maintenance testing
       inspection and renewal and operation of window cleaning cradles runways
       and associated apparatus.

33.

33.1   Heating cooling ventilating and air conditioning the Building and
       providing hot and cold water to the basins and lavatories in the
       Building and lighting the Common Parts including the inspection
       testing monitoring repair cleansing maintenance operation and renewal
       of all boilers plant tanks radiators cooling and ventilating and air
       conditioning apparatus (if any) and all equipment and fittings
       ancillary thereto and all ancillary conducting media.

33.2   Making surveys for and preparation of drawings of plumbing
       installations save those in existence at the date hereof and the
       installation provision repair maintenance operation renewal and
       inspection of all equipment in connection with the metering of water
       used in the Building.

33.3   Procuring the supply of water and sewerage services to the Building
       including without prejudice to the generality of sub-CLAUSE 3.2
       hereof connection charges meter rents standing charges and charges
       for consumption.

33.4   Providing (where appropriate) toilet requisites and hygiene services in
       the lavatories of the Building

33.5   Maintenance landscaping and cultivation of any landscaped or garden or
       other similar areas within the Building or any other areas allocated for
       such purposes from time to time.

<PAGE>

33.6   The regular inspection and treatment against infectious bacteria of any
       bodies of water within the Building.

34.    Provision inspection testing repair maintenance and renewal of fire
       extinguishing equipment in the Common Parts of the Building or within the
       curtilage thereof.

35.    Provision inspection testing repair maintenance cleansing operation and
       renewal of:

35.1   a fire alarm system and fire prevention and detection equipment;

35.2   any other safety apparatus and equipment;

35.3   a security alarm system and security apparatus and devices and all other
       security arrangements; and

35.4   escape and emergency lighting within the Building or within the
       curtilage thereof.

36.    The running of and the inspection repair maintenance operation and
       renewal of the lifts and

       automatic doors (if any) in the Building.

37.    Provision repair maintenance and renewal of rubbish bins refuse
       compactors shredders or other disposal machinery and equipment and cost
       of refuse disposal.

38.    Provision repair cleansing maintenance and renewal of carpets floor
       coverings furniture furnishings decor and landlord's fixtures and
       fittings in the Common Parts.

39.    Provision inspection repair cleansing maintenance and renewal of water
       softening plant and provision of the services of a water analyst and pest
       controller.

40.    Painting and decorating as necessary the Common Parts and the exterior of
       the Building as necessary and washing down cleaning and otherwise
       treating the exterior stonework brickwork and curtain walling and the
       exterior tiles faiences glazed bricks and other washable surfaces.

41.    Repair and renewal of all window frames and skylights of the Building or
       within the curtilage thereof and painting or otherwise treating the
       external parts of such window frames and skylights.

42.    Repair maintenance and renewal of all boundary walls fences and gates.

43.    Inspection cleansing maintenance testing repair alteration laying down
       construction renewal and removal of conducting media (not referred to in
       paragraph 3.1 hereof) and all telephone telex and other information
       transmission or receiving equipment and all gas electric and sanitary
       apparatus in or upon or serving the Building (other than:

43.1.1        those in and upon the said suite of offices hereby demised and for
              the repair or renewal of which the Tenant is responsible under the
              covenants on the part of the Tenant hereinbefore contained;

43.1.2        those in and upon any other suite or suites of offices in the
              Building let to any other tenant of the Landlord or available for
              letting or occupied by the Landlord (other than for the purpose of
              the provision of services) and for the repair or renewal of which
              such tenant or occupier is or would be responsible assuming the
              like responsibility for repair and renewal on the part of such
              tenant or intended tenant as the Tenant has hereunder),

<PAGE>

           and such of the Common Parts as do not form part of the Building and
           making good all damage (including the making good of all decorations)
           arising out of such inspection cleansing maintenance testing repair
           alteration laying down construction renewal or removal.

44.    The services of a signwriter or sign maker for the purpose of displaying
       in such manner as the Landlord shall consider appropriate the names of
       the tenants of the Building on the entrance hall notice board.

45.    Provision of telephones for the use of the Landlord's staff in the
       Building who are solely engaged in the provision of these services.

46.    Payment for all telephone calls made by the staff of the Building and
       their fares and out-of-pocket expenses solely incurred in furtherance of
       their duties hereunder.

47.    Compliance with any Act of Parliament statutory instrument order building
       regulation or other regulation or local bye-law relating to means of
       escape in case of fire or other hazard or to the Building or to the
       Common Parts or making representations against any such matters in
       accordance with statutory regulations.

48.    Employing staff whether directly or indirectly exclusively for the
       management of the Building and the Common Parts and the provision of the
       services herein referred to and all incidental expenditure in relation to
       such employment including but without limiting the generality thereof:

48.1.1   the provision of luncheon vouchers or other meal subsidy;

48.1.2   the payment of the statutory and such other insurance health
         pension welfare and other payments contributions and premiums that
         the Landlord may at its absolute discretion deem desirable; and

48.1.3   the provision cleaning repair and renewal of all necessary uniforms and
         protective clothing.

49.    Payment of uniform business rates and water charges for the Common Parts.

50.    Payment of premiums for insurance as required by the Landlord to cover
       engineering insurance for lifts escalators boilers and electrical and/or
       mechanical equipment installed in the Building.
51.    Payment of surveyors' fees reasonably incurred to ascertain the
       reinstatement values for the purposes of the insurances referred to in
       the preceding paragraph.

52.    Borrowing any necessary sums for or in connection with carrying out the
       works and providing the services amenities facilities and making the
       payments specified in this schedule including all proper interest
       commission banking charges or other charges incurred in respect of such
       borrowing but after allowing as a credit any interest earned on any
       credit balance on any account into which the Tenant's payments in respect
       of the Service Cost are paid.

53.    Provision of any other service amenity or facility and the making of any
       other payment which may in the reasonable discretion of the Landlord be
       required for the efficient running and/or good estate management of the
       Building the comfort of the tenants thereof and the good estate
       management and/or efficient running of the Common Parts.

<PAGE>

                                 FOURTH SCHEDULE

                           Regulations of the Building

54.

54.1   The requirements of the Fire Precautions Act 1971 and the Health and
       Safety at Work Act 1974 and all rules and regulations thereunder shall be
       strictly complied with.

54.2   In particular tenants shall:

54.2.1   cause sufficient fire officers to be appointed;

54.2.2   save in so far as it is the Landlord's responsibility, regularly test
         inspect and maintain fire detection prevention and fighting equipment
         within and exclusively serving the demised premises and keep and
         produce to the relevant authorities and to the Landlord and whomsoever
         the Landlord may reasonably direct records in writing of such test
         inspections and maintenance;

54.2.3   at all times maintain clear access through escape routes; and

54.2.4   fully participate in fire evacuation drills organised in respect of the
         Building or parts thereof.

55.

55.1     No work shall be carried out to in or upon any part of the Building
         when such work  involves the use installation or removal of or the
         repair alteration or other work whatsoever to materials dangerous or
         injurious to health without the Landlord first being notified of what
         is proposed.

55.2     In the event of the existence of materials aforesaid being discovered
         in the course of carrying out such works aforesaid the Landlord shall
         immediately be notified and all work thereto shall immediately cease
         until the Landlord's surveyor has inspected the same.

55.3     Works involving the use installation removal repair alteration or
         whatsoever of or to materials aforesaid or the continuation of works
         where materials aforesaid have been discovered shall only be carried
         out or continued (as the case may be) strictly in accordance with the
         requirements of the Landlord and in accordance with the best codes of
         modern practice regard being had to the use of the Building by others
         as well as the tenants or occupiers of the demised premises.

55.4     The Landlord shall have sole discretion in considering whether work
         may be carried out or continued or in deciding what additional
         safeguards it requires to be taken in addition to those which may be
         imposed under statute building or other rules regulations or
         bye-laws.

56.      No tea leaves or other matters or things likely to cause an obstruction
         are to be placed or thrown in or down the water pipes or W.C. lavatory
         basins or urinals.

57.     All necessary steps shall be taken to prevent the overflow or waste of
        hot or cold water.

<PAGE>

58.    There shall be no interference with the heating cooling or ventilating
       appliances and installations

       apart from the normal switching on or off of the appliances in the
       demised premises for the comfort of the occupants thereof.

59.    Apart from any self-operating lifts installed in the Building no person
       other than the person employed by the Landlord for such purpose shall
       operate lifts.

60.    Overloading or permitting of overloading of any of the lifts or
       escalators in the Building is strictly prohibited.

61.    No goods or merchandise shall (without the consent in writing of the
       Landlord) be brought into the passenger lifts unless the service lift is
       unavailable for use by the Tenant in which case the Tenant shall make
       good any damage caused to the passenger lifts or the Tenant shall
       reimburse to the Landlord the cost of such making good.

62.    No goods or merchandise shall be brought into the Building by means of
       the main entrances to the Building except between the hours of 8.00 a.m.
       and 9.00 a.m. or 6.00 p.m and 7.00 p.m. on Mondays to Fridays inclusive
       or between the hours of 8.00 a.m. and 9.00 a.m. or 12 noon and 1.00 p.m.
       on Saturdays unless the service lift and access shall be unavailable for
       use by the Tenant and no goods or merchandise shall be brought into the
       Building in such manner as will damage the Building or any part thereof.

63.    Tenants or occupiers shall ensure that no rubbish or litter is left by
       them on the Common Parts.

64.    Tenants or occupiers shall not place or permit or suffer to be placed or
       remain in or upon the Common Parts any obstruction whatsoever.

<PAGE>

                                 FIFTH SCHEDULE

                             Form of Surety covenant

The Surety COVENANTS with the Landlord as a primary obligations and on a full
and unqualified indemnity basis as follows:

1.     The Tenant will pay the Rents payable under this Lease on the date on
       which Rents become due and payable and will comply with all the
       obligations and conditions contained in this Lease relating to any other
       matter.

2.     In default of compliance the Surety will pay the Rents or (as
       appropriate) comply with the obligation or condition in respect of which
       the Tenant has defaulted and the Surety will make good to the Landlord on
       demand all costs damage expense and liabilities resulting from any such
       default.

3.     As and when called upon to do so by either the Landlord or the Tenant the
       Surety will enter into any Supplemental Document for the purpose of
       consenting to the Tenant entering into such Supplemental Document and
       confirming that all covenants by the Surety will remain in full force and
       effect in respect of the Lease as varied or amended by such Supplemental
       Document.

4.     The Surety's liability shall remain in full force and effect and shall
       not be released notwithstanding any of the following it being
       acknowledged that the items in the list below are each separate and
       independent and not to be interpreted in the light of any other item:

4.1    any time or indulgence granted by the Landlord to the Tenant or to any
       other person liable or by the Landlord dealing with exchanging varying or
       failing to perfect or enforce any of its rights and remedies against the
       Tenant or any other person liable;

4.2    any variation of or addition to or reduction from the terms of this Lease
       or any Supplemental Document;

4.3    any non-acceptance of Rents or any of them in circumstances where the
       Landlord has reason to suspect a breach of covenant by the Tenant;

4.4    the occurrence of any of the contingencies specified in CLAUSE 5.3 of
       this Lease;

4.5    a surrender of part of the demised premises except that the Surety will
       have no liability in relation to the surrendered part in respect of any
       period following the date of surrender;

4.6    any document which has the effect of operating as a deemed surrender and
       re-grant;

4.7    this Lease being forfeited;

4.8    any incapacity or change in the name style or constitution of the Tenant;

4.9    any change in the constitution of the Landlord or its absorption in or
       amalgamation with or the acquisition of all or part of its undertaking or
       assets by any other person or any reconstruction or reorganisation of any
       kind; and
<PAGE>

4.10   any other act or thing by virtue of which (but for this provision) the
       Surety would have been released.

5.     This guarantee covenant:

5.1     secures the ultimate balance from time to time owing to the Landlord by
       the Tenant and is a continuing security notwithstanding any settlement of
       account or other matter;

5.2      is in addition to any present or future indemnity or guarantee or other
         document containing some obligation to pay discharge or be responsible
         for any indebtedness or liability of the Tenant (a "COLLATERAL
         INSTRUMENT") or right or remedy held by or available to the Landlord;
         and

5.3      will not be in any way prejudiced or affected by the existence of any
         Collateral Instrument rights or remedies or by the Collateral
         Instrument becoming wholly or in part void voidable or unenforceable
         on any ground or by the Landlord compounding with any other person
         liable.

6.     The Landlord will not be obliged to make any claim or demand on the
       Tenant or to resort to any Collateral Instrument or other means of
       payment held by or available to the Landlord before enforcing the
       Surety's covenants and no action taken or omitted by the Landlord in
       connection with any Collateral Instrument or other means of payment will
       discharge reduce prejudice or affect the liability of the Surety nor will
       the Landlord be obliged to apply any money or other property received or
       recovered in consequence of any enforcement or realisation of any
       Collateral Instrument or other means of payment in reduction of the
       liabilities which are guaranteed by the Surety.

7.     The Surety warrants that it has not taken or received and undertakes that
       until all the liabilities which are guaranteed by the Surety have been
       paid or discharged in full it will not take or receive the benefit of any
       security from the Tenant or any other person in respect of its
       obligations under this guarantee.

8.     Until all the liabilities guaranteed by the Surety have been paid
       discharged or satisfied in full (and notwithstanding payment of a
       dividend in any liquidation or bankruptcy or under any compromise or
       arrangement) the Surety agrees that without the prior written consent of
       the Landlord it will not:

8.1    exercise its rights of subrogation reimbursement and indemnity against
       the Tenant;

8.2    demand or accept repayment in whole or in part of any indebtedness due
       to the Surety from the Tenant or from any other person liable, or demand
       or accept any Collateral Instrument in respect of the same or dispose of
       the same;

8.3    take any step to enforce any right against the Tenant or any other person
       liable in respect of any liabilities guaranteed by the Surety; or

8.4        claim any set-off or counterclaim against the Tenant or any other
           person liable or claim or prove in competition with the Landlord
           in the bankruptcy or liquidation of the Tenant or any other person
           liable or have the benefit of or share in any payment from or
           composition with the Tenant or any other person liable or any
           other Collateral Instrument held by the

<PAGE>

       Landlord for any liabilities guaranteed by the Surety or for the
       obligations or liabilities of any other person liable but so that if so
       directed by the Landlord, it will prove for the whole or any part of its
       claim in the liquidation or bankruptcy of the Tenant on terms that the
       benefit of such proof and of all money received by it in respect of such
       proof shall be held on trust for the Landlord and applied in or towards
       discharge of the liabilities guaranteed by the Surety in such manner as
       the Landlord shall deem appropriate

Provided Always that the provisions of PARAGRAPHs 7 or 8 shall not apply where
       the Surety is a bank or other financial institution.

9.     If contrary to PARAGRAPHS 7 or 8.2 the Surety takes or receives the
       benefit of any security or receives or recovers any money or other
       property such security money or other property will be held on trust for
       the Landlord and will be delivered to the Landlord on demand.

10.    The Surety agrees to reimburse the Landlord on demand for all reasonable
       legal and other costs charges and expenses on a full and unqualified
       indemnity basis which may be properly incurred by the Landlord in
       relation to the enforcement of the Surety's covenants.

11.    All payments to be made by the Surety will be made in full without any
       set-off (legal or equitable) condition or counterclaim and subject as
       provided below free and clear of any deductions or withholdings. If at
       any time any applicable law regulation or regulatory requirement or any
       governmental authority monetary agency or central bank requires the
       Surety to make any deduction or withholding in respect of taxes levies
       duties imposts or any charges from any payment due from the Surety the
       sum due from the Surety in respect of such payment shall be increased to
       the extent necessary to ensure that after making such deduction or
       withholding the Landlord receives on the due date for such payment and
       retains (free from any liability in respect of such deduction or
       withholding) a net sum equal to the sum which it would have received had
       no such deduction or withholding been required to be made. The Surety
       shall indemnify the Landlord against any losses or costs incurred by
       reason of any failure of the Surety to make any such deduction or
       withholding or by reason of any increased payment not being made on the
       due date for such payment. The Surety shall promptly deliver to the
       Landlord any receipts certificates or other proof evidencing the amount
       (if any) paid or payable in respect of any deduction or withholding as
       aforesaid.

12.    Each of the provisions of this guarantee covenant is distinct and
       severable from the others and if at any time one or more of such
       provisions is or becomes illegal invalid or unenforceable the validity
       legality and enforceability of the remaining provisions will not in any
       way be affected or impaired.

13.    The Surety agrees to pay Interest as referred to in CLAUSE 1.30 on each
       amount demanded of it under this schedule from the date of demand until
       repayment (as well after as before judgment).

14.    If a liquidator or trustee in bankruptcy surrenders or disclaims this
       Lease or if this Lease becomes forfeited the Surety will at the request
       of the Landlord made within the three months following that surrender or
       disclaimer or forfeiture (as the case may be) take from the Landlord a
       lease of the demised premises for a term equal to the residue of the Term
       which would have remained had there been no surrender or disclaimer or
       forfeiture at the same rents and subject to the same obligations and
       conditions as are contained in this Lease. That lease is to take effect
       from the date of such surrender or disclaimer or forfeiture (as the case
       may be) and in such case

<PAGE>

       the Surety will pay the reasonable costs of that new lease and execute
       and deliver a counterpart of it to the Landlord.

15.    If the Landlord does not require the Surety to take a new lease of the
       demised premises under the preceding PARAGRAPH 14 the Surety will
       nevertheless on demand pay to the Landlord a sum equal to the Rents which
       would have been payable under this Lease but for the surrender or
       disclaimer or forfeiture (as the case may be) in respect of the period
       from the date of that surrender or disclaimer or forfeiture (as the case
       may be) until the expiration of three months from it or until the demised
       premises become re-let by the Landlord or until the expiry of the Term
       (whichever occurs first) together with all arrears of Rents outstanding
       under this Lease.

<PAGE>

EXECUTED and DELIVERED as a DEED          )  /s/ James Maddon (as attorney)
on behalf of Aldwych House BV by two      )
partners of Nabarro Nathanson pursuant    )  /s/ Nicholas Vergette (as attorney)
to a power of attorney:                   )

EXECUTED and DELIVERED as a DEED for      )  /s/ James Maddon (as attorney)
NEN BELEGGINGEB BV by two partner of      )
Nabarro Nathanson pursuant to a           )  /s/ Nicholas Vergette (as attorney)
power of attorney:                        )Confidential information omitted where indicated by "[*]" and filed separately
with the commission pursuant to a request for confidential treatment under rule
24b-2 of the Securities Exchange Act of 1934

<PAGE>

--------------------------------------------------------------------------------

                                   STUDIO 1+1
                         UKRAINE ADVERTISING HOLDINGS BV
                                INNOVA FILM GMBH
                        INTERNATIONAL MEDIA SERVICES LTD.
                                   INTER-MEDIA

                                       AND

                            SERVLAND CONTINENTAL S.A.
                        TREND ADVERTISING AGENCY LIMITED
                       VIDEO INTERNATIONAL - KIEV LIMITED
                                PRIORITET LIMITED

                       ADVERTISING SALES AGENCY AGREEMENT

                              DATED MARCH 14, 2001

Confidential Treatment has been requested with respect to certain information
contained in this Exhibit

--------------------------------------------------------------------------------

<PAGE>

                                TABLE OF CONTENTS

                                                                Page

1.       Interpretation                                           2
2.       Appointment of Agent                                     3
3.       The Agent's Duties                                       4
4.       Technical Support and Reporting                          7
5.       Sale of the Advertising                                  8
6.       Sales Budget and Pricing                                 9
7.       Broadcasting Schedule and Advertising Schedule          10
8.       Intellectual Property                                   11
9.       Rights and Duties of Studio 1+1 Group                   11
10.      Option over the Agent's Productions                     12
11.      Financial Provisions                                    12
12.      Information Rights                                      13
13.      Confidentiality                                         13
14.      Force Majeure                                           14
15.      Duration and Termination                                14
16.      Consequences of Termination                             16
17.      Nature of Agreement                                     17
18.      Arbitration and Proper Law                              18
19.      Contract (Rights of Third Parties) Act 1999             18
20.      Notices and Service                                     18

<PAGE>

ADVERTISING SALES AGREEMENT dated MARCH 14, 2001 between:

1      BROADCASTING COMPANY STUDIO 1+1, a limited liability company organised
       and existing under the laws of Ukraine, whose principal place of business
       is at 7/11 Khreshchatik, 7th Floor, 01001 Kiev, Ukraine;

       UKRAINE ADVERTISING HOLDINGS BV, a corporation organised and existing
       under the laws of The Netherlands, whose principal place of business is
       at Leidsekade 98,1017 PP, Amsterdam, The Netherlands;

       INNOVA FILM GMBH, a corporation organised and existing under the laws of
       Germany, whose principal place of business is at Friedrich Strasse 31-33,
       40210, Dusseldorf, Germany;

       INTERNATIONAL MEDIA SERVICES LTD., a corporation organised and existing
       under the laws of Bermuda, whose principal place of business is at
       Clarendon House, 2 Church Street, PO Box HM 1022, Bermuda; and

       INTER-MEDIA , a corporation organised and existing under the laws of
       Ukraine, whose principal place of business is at 3 Dehtyarivska Street,
       Kyiv, Ukraine,

       (collectively "Studio 1+1 Group").

       AND

2      SERVLAND CONTINENTAL S.A., a corporation organised and existing under the
       laws of Belize, whose principal place of business is at 35A Regent
       Street, PO Box 1777, Belize City, Belize;

       TREND ADVERTISING AGENCY LIMITED a corporation organised and existing
       under the laws of Russia, whose principal place of business is at 25
       Akademika Pavlova Street, Moscow, 121359;

       VIDEO INTERNATIONAL - KIEV LIMITED, a corporation organised and existing
       under the laws of Ukraine, whose principal place of business is at, 10
       Andreya Ivanova Street, Kiev, 01010, Ukraine;

       PRIORITET LIMITED, a corporation organised and existing under the laws of
       Ukraine whose principal place of business is at 2 Mezhevaya Street, Kiev,
       Ukraine.

       (collectively the "Agent").

RECITALS:

(A)    Studio 1+1 Group holds a licence for television broadcasting in the
       Ukraine, which licence includes the right to sell advertising,
       sponsorship and other media related services inserted in the broadcast
       ("Advertising"). Studio 1+1 Group is willing to enter into an exclusive
       advertising sales agreement with the Agent for the Advertising.

(B)    The Agent has extensive marketing and sales experience and desires to act
       as the exclusive sales agent for Studio 1+1 Group in respect of the
       Advertising.

                                       -1-
<PAGE>

(C)    Studio 1+1 Group has agreed to sell and the Agent agreed to buy the 50%
       stake in Prioritet Limited ("Prioritet") held by Studio 1+1 Group.

(D)    The Agent has agreed to give Studio 1+1 Group the first option to
       purchase the Ukrainian broadcasting rights of any unencumbered production
       or co-production of the Agent or its Affiliates.

1.     INTERPRETATION

1.1. In this Agreement, unless the context otherwise requires:

       "ADVERTISING"        has the meaning given that term in Recital (A)
                            of this Agreement;

       "AFFILIATES"         means with respect to any person, any other person,
                            directly or indirectly controlling, or controlled
                            by, or under direct or indirect common control with,
                            such person (where "control" shall exist if a person
                            has direct or indirect ownership of 50% or more of
                            the voting securities or other ownership interest of
                            another entity);

       "AGENT"              has the meaning given in the first paragraph of this
                            Agreement;

       "CPP" OR "COST
         PER POINT"         means the average cost required to achieve one GRP
                            per 30 seconds;

       "FORCE MAJEURE"      means, in relation to either party, any of the
                            following: act of God, war, economic collapse,
                            nation-wide industrial action or material adverse
                            change to the regulatory environment in the Ukraine
                            directly affecting the performance of its
                            obligations by any party to this Agreement or any
                            other matter or thing outside the control of either
                            party;

       "GRP" OR "GROSS
         RATING POINT"      means the viewers of a broadcast totalling one
                            percent of adults, being of such age group as
                            defined by the official television audience research
                            undertaken in the Territory as amended from time to
                            time;

       "INTELLECTUAL
         PROPERTY"          means any patent, copyright, registered design,
                            trade mark or other industrial or intellectual
                            property right;

                                       -2-
<PAGE>

       "RATE CARD"          means the price list for Advertising slots agreed
                            between Studio 1+1 Group and the Agent;

       "RESTRICTED
         INFORMATION"       means any information which is disclosed to either
                            party (Receiving Party) by the other (Disclosing
                            Party) pursuant to or in connection with this
                            Agreement (whether orally or in writing, and whether
                            or not such information is expressly stated to be
                            confidential or marked as such);

       "SALES BUDGET"       means the forecast sales budget in US dollars for a
                            calendar year to be agreed between Studio 1+1 Group
                            and the Agent;

       "SERVICES"           has the meaning given that term in Clause 3.1 of
                            this Agreement;

       "STUDIO 1+1 GROUP"   has the meaning given in the first paragraph of this
                            Agreement;

       "TERRITORY"          means Ukraine.

1.2.   Any reference in this Agreement to `writing' or cognate expressions
       includes a reference to telex, cable, facsimile transmission or
       comparable means of communication.

1.3.   Any reference in this Agreement to any provision of a statute shall be
       construed as a reference to that provision as amended, re-enacted or
       extended at the relevant time.

1.4.   The headings in this Agreement are for convenience only and shall not
       affect its interpretation.

1.5.   All words importing the singular include the plural, all words importing
       any gender include every gender, all words importing persons include
       bodies corporate and unincorporated; and (in each case) vice versa.

2.     APPOINTMENT OF AGENT

2.1.   Subject to the terms and conditions of this Agreement, Studio 1+1 Group
       hereby appoints the Agent as its exclusive sales agent in the Territory
       for the promotion of, and solicitation of customers for the Advertising,
       and the Agent hereby agrees to act exclusively for Studio 1+1 Group in
       that capacity.

2.2.   The  appointment  will  commence on 1 January 2001 for an initial term of
       six years until 31 December 2006. In the event that Studio 1+1 Group both
       obtains a renewal of the licence referred to in Recital (A) and if it
       decides that it wishes to continue to sell the Advertising through an
       agent which is not a member of the Studio 1+1 Group then the Agent shall
       be given the opportunity to match the terms put forward by any other
       parties who have been asked to tender for the right to sell the
       Advertising. If the Agent can match those terms then it shall be
       reappointed by Studio 1+1 Group as the exclusive

                                       -3-
<PAGE>

       sales agent for the Advertising in the Territory. The renewed term of
       appointment of the Agent will expire on expiry of the renewed licence to
       Studio 1+1 Group.

2.3.   Subject to the provisions of Clause 15 below if Studio 1+1 Group
       terminates this Agreement prior to the 31 December 2006 Studio 1+1 Group
       shall pay or allow to the Agent, to compensate the Agent for any loss or
       damage sustained by the Agent resulting from the termination, liquidated
       damages of an amount equal to the total commission paid to the Agent
       under this Agreement in respect of sales made in the 12 months preceding
       notification of termination.

2.4.   Subject to the provisions of Clause 15 below if the Agent terminates this
       Agreement prior to the 31 December 2006 the Agent shall pay or allow to
       Studio 1+1 Group, to compensate Studio 1+1 Group for any loss or damage
       sustained by Studio 1+1 Group resulting from the termination, liquidated
       damages of an amount equal to six weeks revenue from the Advertising
       calculated on the basis of the total amount of the revenue for the twelve
       months preceding the notification of termination divided by eight.

2.5.   The Agent and Studio 1+1 Group agree that all agreements between Studio
       1+1 Group and Prioritet and any obligations relating thereto expire on 31
       December, 2000 but Prioritet shall be entitled to sell and market the
       Advertising in accordance with the terms of this Agreement for the
       benefit of the Agent with effect from 1 January 2001.

2.6.   The Agent agrees to purchase all of Studio 1+1 Group's interest in
       Prioritet with effect from 1 January 2001 in consideration for the waiver
       and release by the Agent of all claims of the Agent or Prioritet against
       Studio 1+1 Group and all obligations, whether monetary or not, owing by
       Studio 1+1 Group to the Agent or Prioritet and the assumption by the
       Agent of all assets and liabilities of Prioritet, including without
       limitation, its employees. Both parties will use all reasonable
       endeavours to complete the formal transfer of Studio 1+1 Group's interest
       in Prioritet on or before 30 June 2001.

2.7.   Pending completion of formal transfers of Studio 1+1 Group's interest in
       Prioritet, Studio 1+1 Group hereby agrees that it holds such interest on
       trust for the Agent. Studio 1+1 Group further agrees to follow the
       instruction of the Agent in all matters relating to Prioritet and to
       cause Prioritet to carry on its business in the ordinary course and not
       to permit it to undertake any activities or incur any obligations outside
       the ordinary course of its business without the written consent of the
       Agent.

3.     THE AGENT'S DUTIES

3.1.   The Agent shall use all reasonable endeavours to promote and market the
       Advertising and to seek potential customers for the Advertising and to
       perform such other obligations as contemplated herein (collectively the
       "Services"), but the Agent shall not be entitled to conclude any
       contracts for the sale of the Advertising on behalf of or as agent of
       Studio 1+1 Group, or to bind and/or represent Studio 1+1 Group in any way
       which are not in accordance with:

                                       -4-
<PAGE>

       3.1.1.     the Studio 1+1 Group standard terms and conditions referred to
                  in Clause 5.4; and

       3.1.2.     the current Rate Card; and

       3.1.3.     the agreed trading parameters as set out in Clause 6.2.

3.2.   The Agent shall conduct sales of the Advertising with all due care and
       diligence and shall use all reasonable endeavours to cultivate and
       maintain good relations with customers and potential customers in
       accordance with sound commercial principles.

3.3.   Subject as provided in this Agreement and to any reasonable directions
       which Studio 1+1 Group may from time to time properly give, the Agent
       shall be entitled to perform the Services in such manner as it may think
       fit, provided that the Agent shall at all times act in order to maximise
       the sales revenue of Studio 1+1 Group over the whole calendar year, the
       rates obtained at peak times and the total share of the third party's
       advertising budget subject to and consistent with the terms of the Rate
       Card as amended from time to time and to the trading parameters set out
       in Clause 6.2.

3.4.   The Agent shall procure that its representatives:

       3.4.1.     make themselves available in the Territory, at all reasonable
                  times and upon reasonable notice, to Studio 1+1 Group for the
                  purposes of consultation and advice relating to this Agreement
                  and the Advertising;

       3.4.2.     at the expense of the Agent attend meetings in the Territory,
                  at all reasonable times and upon reasonable notice, with
                  representatives of Studio 1+1 Group and such customers or
                  prospective customers as may be necessary for the performance
                  of its duties under this Agreement;

       3.4.3.     make such calls upon customers or potential customers for the
                  purpose of promoting the Advertising as the Agent may think
                  fit; and

       3.4.4.     attend such trade exhibitions and other sales outlets, at all
                  reasonable times and upon reasonable notice from Studio 1+1
                  Group, or as the Agent may think commercially suitable or as
                  otherwise agreed with Studio 1+1 Group for the purpose of
                  promoting the Advertising.

3.5.   The Agent shall promptly notify Studio 1+1 Group of all orders for
       Advertising in the Territory which it receives from customers. The Agent
       shall notify Studio 1+1 Group of the proposed arrangements, including the
       proposed rates and terms.

3.6.   The Agent shall make all reasonable efforts to enhance communications and
       promote negotiations between Studio 1+1 Group and any third party in
       respect of the Advertising. Studio 1+1 Group shall have the right to
       participate in all negotiations and meetings with agencies and customers
       in respect of the Advertising.

3.7. The Agent shall in relation to the Advertising:

       3.7.1.     describe itself as `exclusive Sales Agent' for Studio 1+1
                  Group;

                                      -5-
<PAGE>

       3.7.2.     not hold itself out, or permit any person to hold it out, as
                  being authorised to bind Studio 1+1 Group other than as
                  permitted under this Agreement; and

       3.7.3.     not do any act which might reasonably create the impression
                  that it is so authorised.

3.8.   The Agent shall be responsible for obtaining all licences, permits and
       approvals which are necessary for the sale of the Advertising in the
       Territory and for the performance of its duties hereunder but Studio 1+1
       Group shall support and assist the Agent in this respect.

3.9.   Each party shall notify the other promptly on becoming aware of any
       changes in the laws and regulations in the Territory relating to the
       Advertising and shall forthwith notify the other party if it becomes
       aware that it or any of the Advertising are or may be in breach of any of
       those laws or regulations.

3.10. The Agent shall promptly inform Studio 1+1 Group of:

       3.10.1.    any complaint (other than in respect of de minimis matters) or
                  after-sales enquiry concerning the Advertising which is
                  received by the Agent;

       3.10.2.    any matters which, in the reasonable opinion of the Agent, is
                  likely to be relevant in relation to the sale, use or
                  development of the Advertising; and

       3.10.3.    any agreement relating in full or in part to the Territory
                  with respect to non-television advertising, public relations
                  or production which the Agent enters into with any customer
                  who, to the knowledge of the Agent, is an existing customer of
                  Studio 1+1 Group. Subject to the extent permitted by the
                  provisions of such an agreement the Agent shall give details
                  of the nature and value of the agreement and its relationship
                  to any existing agreement of Studio 1+1 Group. This Clause
                  3.10.3 may be waived by Studio 1+1 Group in writing in its
                  sole discretion with respect to any individual customer.

3.11.  The Agent shall not:

       3.11.1.    use any advertising,  promotional or selling  materials when
                  performing the Services except those supplied or approved by
                  Studio 1+1 Group;

       3.11.2.    engage in any conduct which in the reasonable opinion of
                  Studio 1+1 Group is prejudicial to Studio 1+1 Group's business
                  or the marketing of the Advertising generally; or

       3.11.3.    represent any other television stations or broadcasters in the
                  Territory either directly or indirectly in the sale, promotion
                  or marketing of any services which compete with the
                  Advertising without the prior written consent of Studio 1+1
                  Group such consent not to be unreasonably withheld. If such
                  consent is given, Studio 1+1 Group may withdraw such consent
                  on reasonable grounds and upon giving six months' prior notice
                  to the Agent (provided that such withdrawal shall not take
                  effect until the expiration of the calendar year following
                  such notice).

                                       -6-
<PAGE>

4.     TECHNICAL SUPPORT AND REPORTING

4.1.   The Agent shall provide data entries of sales of the Advertising and
       shall report such sales to Studio 1+1 Group. The Agent shall produce
       agreements for signature and invoices for authorisation by Studio 1+1
       Group in respect of sales of the Advertising.

4.2.   The Agent shall provide computer-based analysis software to enable daily
       tracking and data retrieval by Studio 1+1 Group of the Advertising sold
       and to whom it has been sold and the applicable rates and terms.

4.3.   The Agent shall provide technical support and assistance to Studio 1+1
       Group for the development of interfaces between the Agent's sales and
       administration system and Studio 1+1 Group's current and future traffic
       and MIS systems.

4.4.   The Agent shall maintain offsite daily back-ups of all data on its server
       and a reserve capability for data entries of sales of the Advertising and
       reporting of such sales to Studio 1+1 Group. The Agent shall procure that
       in the event of a technical failure or disaster (for example a fire at
       the Agent's office) the Agent is in a position to resume this part of its
       service within 24 hours or as soon as possible thereafter. Failure to
       provide this service for a period longer than one week will be treated as
       a breach of this Agreement and shall entitle Studio 1+1 Group to
       terminate with immediate effect this Agreement upon giving notice in
       writing to the Agent. The Agent undertakes to indemnify Studio 1+1 Group
       in respect of any loss of revenue suffered as a result of the Agent's
       failure to observe the terms of this Clause 4.4. The terms of this Clause
       4.4 shall be subject to the terms of Clause 14 (Force Majeure).

4.5.   Representatives of Studio 1+1 Group and the Agent shall meet at least
       once per month to determine the content and timing of regular reports
       which the Agent shall provide to Studio 1+1 Group under this Agreement.

4.6.   Studio 1+1 Group shall:

       4.6.1.     act at all times in its relations with the Agent dutifully and
                  in good faith;

       4.6.2.     supply the Agent with advertising, promotional and selling
                  materials at the expense of Studio 1+1 Group, and give the
                  Agent such technical, market and other support as the Agent
                  may reasonably require for the purpose of efficiently
                  discharging the Agent's duties under this Agreement.

4.7.     Studio 1+1 Group shall indemnify the Agent against all liabilities and
         costs which the Agent may suffer or incur as a result of any claims
         brought by third parties in connection with this Agreement, provided
         that this Indemnity shall not extend to any liabilities or costs
         suffered or incurred as a result of the negligence, default or fraud of
         the Agent or the breach by the Agent of any terms of this Agreement.

4.8.   The Agent shall indemnify Studio 1+1 Group against all liabilities and
       costs which Studio 1+1 Group may suffer or incur as a result of any
       claims brought by third parties in connection with this Agreement,
       provided that this Indemnity shall not extend to any

                                       -7-
<PAGE>

       liabilities or costs suffered or incurred as a result of the negligence,
       default or fraud of Studio 1+1 Group or the breach by Studio 1+1 Group of
       any terms of this Agreement.

5.     SALE OF THE ADVERTISING

5.1.   Studio 1+1 Group may at its absolute discretion refuse to deal with any
       customer put forward by the Agent if that customer wants to purchase
       Advertising of a political or religious nature or having political or
       religious content.

5.2.   In the event that Studio 1+1 Group does not wish to sell Advertising to a
       particular customer or customers for any other reason it shall give
       notice in writing to the Agent to this effect together with substantial
       justification for such refusal. Following such notice, the Agent agrees
       not to negotiate with such named customer or customers for the sale of
       Advertising in the Territory without the prior written consent of Studio
       1+1 Group, such consent not to be unreasonable withheld.

5.3.   Subject to the terms of clauses 5.1 and 5.2 above Studio 1+1 Group will
       accept all other contracts for the sale of the Advertising provided they
       comply with:

       5.3.1.     the Studio 1+1 Group standard terms and conditions;

       5.3.2.     the existing Rate Card; and

       5.3.3.     the agreed trading parameters as set out in Clause 6.2.

5.4.   All agreements and contracts for the provision of Advertising to a third
       party will be made directly between Studio 1+1 Group and that third party
       and acknowledge the role of the Agent.

5.5.   All sales of the Advertising shall be made on the basis set out in Clause
       5.2 above, and:

       5.5.1.     Studio 1+1 Group shall provide to the Agent copies of its
                  terms and conditions as varied from time to time and give the
                  Agent at least one month's prior written notice of any changes
                  thereto;

       5.5.2.     the Agent shall bring to the notice of all customers and
                  prospective customers for the Advertising Studio 1+1 Group's
                  terms and conditions; and

       5.5.3.     the Agent shall not make or give any promises, warranties,
                  guarantees or representations concerning the Advertising other
                  than those contained in those terms and conditions except as
                  agreed between Studio 1+1 Group and the Agent.

5.6.   Any transaction or proposed transaction by either party with a third
       party in relation to the Advertising shall be for cash consideration
       only. Transactions for non-cash consideration (such as, for example,
       barter or a back-to-back cash offsetting) shall only be made with the
       prior written agreement of the other party, and such agreement shall
       provide how the consideration shall be dealt with in the calculation of
       any commission payable to the Agent.

                                       -8-
<PAGE>

5.7.   Unless otherwise agreed in writing, the Agent shall not be entitled to
       receive payments on Studio 1+1 Group's behalf in respect of sales of the
       Advertising.

5.8.   VAT and all other applicable taxes shall be applied in accordance with
       applicable legislation.

5.9.   All monies received from third parties in respect of the Advertising
       shall be paid directly into a specifically designated "Sales Receipts"
       account of Studio 1+1 Group. The Agent shall be entitled to receive
       copies of the monthly bank statements of such account within five working
       days after each month end.

5.10.  Studio 1+1 Group shall promptly notify the Agent of any payments received
       from third parties for the Advertising and enter such payments into any
       computer-based system used for this purpose.

6.     SALES BUDGET AND PRICING

6.1.   The parties shall agree the Sales Budget for a particular calendar year
       on or before 30 November of the preceding year. If such agreement is not
       reached, the Sales Budget shall be the actual level of sales in US
       Dollars in the previous year plus a [*] increase. The Sales Budget shall
       not include any amounts for political or religious Advertising revenues.

6.2.   The CPP and the Rate Card shall be agreed between the parties before
       reaching agreement on the Sales Budget. The Agent may not propose a
       discount greater than [*] from the Rate Card price without the prior
       written consent of Studio 1+1 Group.

6.3.   When agreeing the Sales Budget, Studio 1+1 Group and the Agent shall take
       account of:

         6.3.1.   all significant refusals during the preceding twelve months by
                  Studio 1+1 Group to enter into contracts for the Advertising
                  with any third parties in terms of Clause 5.3;

          6.3.2.  any significant  alterations  during the preceding twelve
                  months to the broadcasting  schedule or the advertising
                  schedule in terms of Clauses 7.3 and 7.4; and

           6.3.3. all significant Advertising during the preceding twelve months
                  provided at special rates or free of charge in terms of Clause
                  9.1.

6.4.   At the request of the Agent the parties shall review the then current
       Sales Budget taking into account all commercial variations including, but
       not limited to, the provisions of clause 6.3 above but references to
       "preceding twelve months" shall be construed as references to "preceding
       three months". The Agent shall be entitled to request such a review at
       the end of every quarter commencing on 31 March 2001. The consent of both
       the Agent and Studio 1+1 Group is required before any amendment can be
       made to the

[*] Confidential portions omitted where indicated and filed separately with the
    Commission.

                                       -9-
<PAGE>

       Sales Budget and both parties agreed that such consent will not be
       unreasonably withheld. The Sales Budget as consented to, reviewed, and
       amended shall then become the current Sales Budget for the purposes of
       this Agreement.

7.     BROADCASTING SCHEDULE AND ADVERTISING SCHEDULE

7.1.   Studio 1+1 Group shall provide the Agent at the end of each month with a
       broadcasting schedule for the following two months. Studio 1+1 Group
       shall have absolute discretion to amend the broadcasting schedule from
       time to time. Studio 1+1 Group shall use its reasonable endeavours not
       unreasonably to alter such broadcasting schedules for any calendar month
       after the 20th day of the preceding month, and shall notify the Agent
       promptly if any such alteration occurs.

7.2.   Studio 1+1 Group shall provide to the Agent by 1 January of any year an
       annual schedule of available advertising time in accordance with the
       maximum allowable under Ukrainian law. Any reduction to the scheduled
       advertising time shall be agreed between the parties, acting in
       accordance with normal commercial practice.

7.3.   Studio 1+1 Group shall have absolute discretion to alter the advertising
       schedule from time to time, provided that it shall use all reasonable
       endeavours to broadcast advertising in accordance with the advertising
       schedule and any agreements made with third parties relating to the
       scheduling of specific advertising.

7.4.   The Agent acknowledges and agrees that it may be necessary to alter the
       broadcasting schedule or the advertising schedule as a consequence of
       programming constraints such as live broadcasts, special news bulletins
       or special events or other special circumstances. Any alteration of the
       advertising schedule shall not make either party liable to the other for
       losses of any kind.

7.5.   The Agent shall be responsible for, and Studio 1+1 Group agrees to assist
       the Agent in, agreeing any compensation for advertising schedule
       alterations with the relevant third parties subject to ultimate approval
       by Studio 1+1 Group, such approval not to be unreasonably withheld.

7.6.   Studio 1+1 Group shall have absolute discretion over the scheduling and
       placement of all advertising spots and may refuse to broadcast any
       advertising material which may contravene applicable laws, regulations or
       advertising standards. Studio 1+1 Group shall provide to the Agent
       written confirmation and reasons for declining or cancelling any
       advertising.

7.7.   Studio 1+1 Group shall provide on a daily basis the Agent with airtime
       logs (in software format if required) showing the actual programs and
       advertising broadcast with the time broadcast.

                                      -10-
<PAGE>

8.     INTELLECTUAL PROPERTY

8.1.   Nothing in this Agreement shall give either party any rights in respect
       of any trade names or trade marks owned or licensed by the other in
       relation to the Advertising or of the goodwill associated therewith, and
       the parties hereby acknowledge that, except as expressly provided in this
       Agreement, they shall not acquire any rights in respect thereof and that
       all such rights and goodwill are, and shall remain, vested in that other
       party.

8.2.   Neither party shall use any trade marks or trade names so resembling the
       trade marks or trade names of the other as to be likely to cause
       confusion or deception except that the Agent may use the trade marks and
       trade names of Studio 1+1 Group when performing the Services under this
       Agreement.

8.3.   Without prejudice to the right of either party or any third party to
       challenge the validity of any Intellectual Property, neither party shall
       (i) do or authorise any third party to do any act which would or might
       invalidate or be inconsistent with the Intellectual Property of either
       party or (ii) omit or authorise any third party to omit to do any act
       which, by its omission, would have that effect or character.

8.4.   Studio 1+1 Group acknowledges that the Agent retains all licences and
       Intellectual Property rights in respect of all software provided or used
       by the Agent in performing the Services under this Agreement. Studio 1+1
       Group acknowledges and agrees that it shall not acquire by implication or
       otherwise any right or licence in or title to any software used or
       provided by the Agent unless agreed in writing between the parties.

9.     RIGHTS AND DUTIES OF STUDIO 1+1 GROUP

9.1.   In respect of any Advertising time which has not been sold for cash,
       Studio 1+1 Group shall be entitled:

       9.1.1.     to provide the Advertising at special rates to the promoters
                  of certain sporting, entertainment and public relations events
                  associated with Studio 1+1 Group without becoming liable to
                  the Agent in any way for commission or otherwise, provided
                  however, that Studio 1+1 Group shall not provide such
                  Advertising to third parties who are customers of Studio 1+1
                  Group at such time without the consent of the Agent; and

       9.1.2.     to provide Advertising free of charge, and without liability
                  for the payment of any commission to the Agent, relating to
                  the promotion of Studio 1+1 Group or its Affiliates.

9.2.   Studio 1+1 Group shall at its own expense promptly supply the Agent with
       such advertising, promotional and selling materials (including airtime)
       as the Agent may from time to time reasonably require for the purpose of
       complying with its obligations under this Agreement.

                                      -11-
<PAGE>

10.    OPTION OVER THE AGENT'S PRODUCTIONS

10.1.  The Agent shall give notice to Studio 1+1 Group of any Ukrainian
       broadcasting rights the Agent or any of its Affiliates intends to grant
       in any of its unencumbered productions or co-productions and the terms
       and price payable for such broadcasting rights.

10.2.  Studio 1+1 Group shall have the first right to purchase the rights to any
       such production or co-production at the same terms and price as the Agent
       would otherwise offer such rights to third parties.

10.3.  If, within 30 days from the receipt by Studio 1+1 Group of any notice in
       accordance with Clause 10.1, Studio 1+1 Group does not purchase the
       relevant broadcasting rights, the Agent may offer those rights to a third
       party on terms no more favourable than those offered to Studio 1+1 Group.
       In the event that the Agent is unable to sell the rights at the price
       offered to Studio 1+1 Group it shall re-offer the rights at a reduced
       price to Studio 1+1 Group which must indicate within 2 business days
       whether it wishes to buy the rights at that reduced price. If Studio 1+1
       Group refuses to buy the rights on the second occasion the Agent shall be
       free to dispose of the rights on whatever terms it deems fit. In the
       event that the Agent sells the rights to a third party, subject to any
       obligations of confidentiality relating to such sale the Agent shall if
       requested disclose those terms to Studio 1+1 Group.

11.    FINANCIAL PROVISIONS

11.1.  Studio 1+1 Group shall pay to the Agent or as it may direct [*] by 30
       June, 2001 as an introductory bonus.

11.2.  In consideration of the obligations undertaken by the Agent hereunder,
       Studio 1+1 Group shall pay the Agent commission equal to [*] of the
       revenue received which shall be payable to the Agent within five (5)
       business days of receipt of any payment into the specified "Sales
       Receipts" account. Where VAT is applicable to the revenue received by
       Studio 1+1 Group, the Agent shall provide Studio 1+1 Group with invoice
       documentation showing the corresponding VAT included in its commission,
       suitable

       for offset accounting in the books of Studio 1+1 Group. Commission shall
       be paid in the same currency as the revenue received by Studio 1+1 Group
       unless otherwise requested by the Agent.

11.3.  In the event that the Agent requests that commission is paid to it
       outside the Territory then commission of [*] shall be calculated on the
       net amount of the revenue - ie after deduction of VAT or other sales tax.
       If payment of commission is made in the Territory then commission shall
       be calculated on the gross amount of the revenue - ie including VAT or
       other sales tax.

11.4.  In the event that Studio 1+1 Group fails to pay any amount due in US
       Dollars, under this Clause 11 within 10 working days of the amount
       becoming due to the Agent, Studio 1+1 Group shall pay the Agent interest
       (payable in the currency of the amount due) at the rate of [*] above the
       overnight US-Dollar LIBOR rate in effect as of the date such

[*] Confidential portions omitted where indicated and filed separately with the
    Commission.

                                      -12-
<PAGE>

       payment became overdue on the total outstanding sum. If the overdue
       amount is payable in any other currency including, but not limited to,
       Ukrainian Hryvnia, interest shall be payable at the rate of [*] per annum
       or, in the event of a financial crisis in the country to which that
       currency is the legal tender such crisis causing a dramatic increase in
       the commercial rate of interest applicable to borrowings in that country,
       a percentage interest rate in line with the then commercial rate of
       interest applicable to such borrowing.

11.5.  The provisions of this Clause 11 shall survive termination of this
       Agreement.

12.    INFORMATION RIGHTS

12.1.  The Agent shall procure that complete records are maintained in relation
       to monies and charges made by the Agent.

12.2.  Studio 1+1 Group shall retain complete records of all information
       relevant to this Agreement, including copies of signed contracts
       concerning the Advertising.

12.3.  Either party may request an audit, at its own cost, of the accounting
       records, systems and documentation of the other party relevant to this
       Agreement to ensure that the terms of this Agreement are complied with.

12.4.  The provisions of this clause 12 shall survive termination of this
       Agreement until all payments of commission have been made to the Agent.

13.    CONFIDENTIALITY

13.1.  Except as provided by Clauses 13.2 and 13.3, both parties shall at all
       times during the continuance of this Agreement and after its termination:

       13.1.1.    use their best  endeavours to keep all Restricted  Information
                  confidential  and accordingly not to disclose any Restricted
                  Information to any other person; and

       13.1.2.    not use any Restricted Information for any purpose other than
                  the performance of their obligations under this Agreement.

13.2. Any Restricted Information may be disclosed by the Receiving Party to:

       13.2.1.    any customers or prospective customers;

       13.2.2.    any governmental or other authority or regulatory body; or

       13.2.3.    any employees of the Agent or of any of the aforementioned
                  persons,

[*] Confidential portions omitted where indicated and filed separately with the
Commission.

                                      -13-
<PAGE>

       to such extent only as is necessary for the purposes contemplated by this
       Agreement, or as is required by law and subject in each case to the
       Receiving Party using its best endeavours to ensure that the person in
       question keeps the same confidential and does not use the same except for
       the purposes for which the disclosure is made.

13.3.  Any Restricted Information may be used by the Receiving Party for any
       purpose, or disclosed by the Receiving Party to any other person, to the
       extent only that:

       13.3.1.    it is at the date hereof, or hereafter becomes, public
                  knowledge through no fault of the Receiving Party (provided
                  that in doing so the Receiving Party shall not disclose any
                  Restricted Information which is not public knowledge); or

       13.3.2.    it can be shown by the Receiving Party, to the reasonable
                  satisfaction of the Disclosing Party, to have been known to
                  the Receiving Party prior to its being disclosed by the
                  Disclosing Party; or

       13.3.3.    it is required by any provision of law.

14.    FORCE MAJEURE

14.1.  If either party is affected by Force Majeure it shall forthwith notify
       the other party of the nature and extent thereof.

14.2.  Neither party shall be deemed to be in breach of this Agreement, or
       otherwise be liable to the other, by reason of any delay in performance,
       or non-performance, of any of its obligations hereunder to the extent
       that such delay or non-performance is due to any Force Majeure of which
       it has notified the other party; and the time for performance of that
       obligation shall be extended accordingly.

14.3.  If the Force Majeure in question prevails for a continuous period in
       excess of six months, the parties shall enter into bona fide discussions
       with a view to alleviating its effects, or to agreeing upon such
       alternative arrangements as may be fair and reasonable.

15.    DURATION AND TERMINATION

15.1.  Subject as provided in this Clause 15.1 and Clauses 15.2 and 15.3, this
       Agreement  shall  continue as set out in Clause 2.2.

15.2.  Studio 1+1 Group shall be entitled to terminate this Agreement on giving
       not less than six months notice if:

       15.2.1.    Studio 1+1 Group's advertising revenue falls more than [*]
                  below the Sales Budget in any calendar year provided that:

[*] Confidential portions omitted where indicated and filed separately with the
Commission.

                                      -14-
<PAGE>

                  (i)    Studio 1+1 Group's average national prime time ratings
                         (as measured by AGB or any other equivalent officially
                         recognised research company) are not more than [*]
                         below the agreed targets for that year;

                  (ii)   the increase in the Consumer Price Index, as officially
                         published by the Government of Ukraine, is below [*] in
                         the Ukraine for that year;

                  (iii)  Ukraine has a positive real gross domestic product
                         growth in that year;

                  (iv)   the Government of Ukraine has not, during such calendar
                         year, made a significant default under its non-Hryvnia
                         denominated public external indebtedness represented by
                         bonds or other similar securities for a period of more
                         than three months; or

                  (v)    the fall in advertising revenue is not attributable to
                         any of the matters referred to in sub-clauses 6.3.1 to
                         6.3.3 during the calendar year in question.

                  (vi)   the total amount of television advertising expenditure
                         on all channels in the Territory in the calendar year
                         is not less than that of the previous calendar year.

       15.2.2.    in the reasonable opinion of Studio 1+1 Group, there has been
                  a material change in the laws and regulations relating to the
                  Advertising which prevents the Agent from performing the
                  Services substantially in accordance with the terms of this
                  Agreement; or

       15.2.3.    the Agent fails to comply with the terms of Clause 4.4.

15.3.  If notice  under  clause  15.2 is given by Studio 1+1 Group in the period
       from 1 January to 30 June in any year termination will be deemed to take
       effect on 31 December of that year.

15.4.  If notice under clause 15.2 is given by Studio 1+1 Group in the period
       from 1 July to 31 December in any year termination will been deemed to
       take effect after six months following the date of such notice.

15.5.  The Agent shall be entitled to terminate this Agreement on giving not
       less than 6months' notice to expire on 31 December in any year if Studio
       1+1 Group's share of audience is [*] or less for three consecutive
       months.

15.6.  Either party shall be entitled to terminate this Agreement without prior
       notice if:

       15.6.1.    there is a change in control of the other party (where control
                  means the power to direct the management and/or policy of a
                  party whether through the exercise of voting rights, by
                  contract, board control or otherwise) where the new controller
                  is in competition or conflict with either party in the
                  Territory;

[*] Confidential portions omitted where indicated and filed separately with the
Commission.

                                      -15-
<PAGE>

       15.6.2.    that other party commits a material breach of any of the
                  provisions of this Agreement, which breach, if remediable, is
                  not remedied within thirty (30) days of the earlier of (i)
                  notice of such breach being given to the party in breach, and
                  (ii) knowledge by the party in breach of the occurrence of
                  such breach;

       15.6.3.    an  encumbrancer  takes  possession or a receiver is appointed
                  over any of the property or assets of that other party;

       15.6.4.    that other party makes any voluntary arrangement with its
                  creditors or becomes subject to an administration order;

       15.6.5.    that other party goes into liquidation (except for the
                  purposes of amalgamation or reconstruction and in such manner
                  that the company resulting therefrom effectively agrees to be
                  bound by or assume the obligations imposed on that other party
                  under this Agreement);

       15.6.6.    anything analogous to any of the foregoing under the law of
                  any jurisdiction occurs in relation to either the Agent or
                  Studio 1+1 Group in the Territory; or

       15.6.7.    that other party ceases, or threatens to cease, to carry on
                  business.

15.7.  Any waiver by either party of a breach of any provision of this Agreement
       shall not be considered as a waiver of any subsequent breach of the same
       or any other provision thereof.

15.8.  The rights to terminate this Agreement given by this Clause shall be
       without prejudice to any other right or remedy of either party in respect
       of the breach concerned (if any) or any other breach.

16.    CONSEQUENCES OF TERMINATION

16.1. Upon the termination of this Agreement for any reason:

       16.1.1.    the Agent shall dispose of all advertising, promotional or
                  sales material relating to the Advertising in the possession
                  of the Agent, as directed by Studio 1+1 Group;

       16.1.2.    the Agent shall have no claim against Studio 1+1 Group for
                  compensation for loss of agency rights, loss of goodwill or
                  any similar loss (except unpaid commission);

       16.1.3.    the Agent shall cease to promote, market, advertise or solicit
                  customers for the Advertising;

       16.1.4.    the provisions of Clause 11 shall continue in force in
                  accordance with its terms and for the avoidance of doubt the
                  Agent shall be entitled to receive all commission due on sales
                  of the Advertising made before the termination of this

                                      -16-
<PAGE>

                  Agreement such payments to continue to be made in accordance
                  with Clause 11.2 (ie within 5 business days of receipt of
                  payment by Studio 1+1 Group);

       16.1.5.    Clause 13 shall continue in force in accordance with its
                  terms; and

       16.1.6.    subject as otherwise provided herein and to any rights or
                  obligations which have accrued prior to termination, neither
                  party shall have any further obligation to the other under
                  this Agreement.

17.    NATURE OF AGREEMENT

17.1.  Neither party may assign this Agreement or the rights and obligations
       hereunder without the prior written consent of the other party, such
       consent not to be unreasonably withheld or delayed; provided, however,
       that no such assignment shall relieve the assigning party of any
       liability hereunder.

17.2.  The Agent shall not without the prior written consent of Studio 1+1 Group
       employ sub-agents; if with such consent it does so, every act or omission
       of the sub-agent shall for the purposes of this Agreement be deemed to be
       the act or omission of the Agent.

17.3.  Nothing in this Agreement shall create, or be deemed to create, a
       partnership or the relationship of employer and employee between the
       parties.

17.4.  Nothing in this Agreement shall be construed as representing a sub-lease
       to the Agent by Studio 1+1 Group of any of Studio 1+1 Group's
       broadcasting rights in the Territory.

17.5.  This Agreement contains the entire agreement between the parties with
       respect to the subject matter hereof, supersedes all previous agreements
       and understandings between the parties with respect thereto, and may not
       be modified except by an instrument in writing signed by the duly
       authorised representatives of the parties.

17.6.  To the extent there is any inconsistency between this Agreement and
       agreements relating to advertising sales between any member of the Studio
       1+1 Group and/or its Affiliates, this Agreement shall take precedence.

17.7.  Each party acknowledges that, in entering into this Agreement, it does
       not do so on the basis of, and does not rely on, any representation,
       warranty or other provision except as expressly provided herein, and all
       conditions, warranties or other terms implied by statute or common law
       are hereby excluded to the fullest extent permitted by law.

17.8.  If any provision of this Agreement is held by any court or other
       competent authority to be void or unenforceable in whole or part, this
       Agreement shall continue to be valid as to the other provisions thereof
       and the remainder of the affected provision.

17.9.    In case of any conflict between the English language version of this
         Agreement and a version in another language, the English language
         version shall prevail.

17.10.   In respect of any consents to be given by either party pursuant to the
         terms of this Agreement, if the party whose consent is required does
         not expressly approve or

                                      -17-
<PAGE>

       withhold its consent within 3 working days following such a request by
       the other party, consent shall automatically be deemed to have been
       given. Consent given by Studio 1+1 shall bind Studio 1+1 Group and
       consent given by Prioritet shall bind the Agent. Studio 1+1 or Prioritet
       may give notice in writing to the other to nominate another party who is
       already a party to this Agreement to give any consents required by this
       Agreement in place of Studio 1+1 or Prioritet.

17.11. In the event that any of the rights or obligations of Studio 1+1 Group or
       the Agent and which relate to the subject matter of this Agreement are
       transferred or assigned to a third party during the term of this
       Agreement, then either Studio 1+1 Group or the Agent (as the case may be)
       shall procure that the third party shall enter into a deed of adherence
       agreeing to be bound by the terms of this Agreement as if it had been an
       original signing party to this Agreement.

18.    ARBITRATION AND PROPER LAW

18.1.  Any dispute arising out of or in connection with this Agreement shall be
       referred to arbitration in London, England in accordance with rules of
       the International Chamber of Commerce.

18.2.  This Agreement shall be governed by and construed in all respects in
       accordance with the laws of England.

19.    CONTRACT (RIGHTS OF THIRD PARTIES) ACT 1999

       The parties to the Agreement expressly agreed that a person who is not a
       party to this Agreement shall not have the right to enforce any term or
       terms of this Agreement pursuant to the Contract (Rights of Third
       Parties) Act 1999.

20.    NOTICES AND SERVICE

20.1.  Any notice or other information required or authorised by this Agreement
       to be given by either party to the other may be given by hand or sent (by
       first class pre-paid post, facsimile transmission, electronic mail or
       comparable means of communication) to the other party at the address
       referred to in Clause 20.4. Notice given to Studio 1+1 Group shall be
       deemed notice to Studio 1+1 Group and notice given to Prioritet shall be
       deemed notice to the Agent provided that copies of such notices are at
       the same time given or sent to the parties referred to in Clause 20.4.

20.2.  Any notice or other information given by post pursuant to Clause 20.1
       which is not returned to the sender as undelivered shall be deemed to
       have been given on the fifth (5th) day after the envelope containing the
       same was so posted; and proof that the envelope containing any such
       notice or information was properly addressed, pre-paid, registered and
       posted, and that it has not been so returned to the sender, shall be
       sufficient evidence that such notice or information has been duly given.

                                      -18-
<PAGE>

20.3.  Any notice or other information sent by facsimile transmission or
       comparable means of communication shall be deemed to have been duly sent
       on the date of transmission, provided that a confirming copy thereof is
       sent by pre-paid airmail post to the other party at the address referred
       to in Clause 20.4 within 24 hours after transmission.

20.4.  The Agent hereby designates, appoints and empowers Speechly Bircham of 6
       St. Andrew Street, London EC4A 3LX, England as its authorised agent to
       receive service of process. Studio 1+1 Group hereby designates, appoints
       and empowers Central European Media Enterprises Ltd., 8th Floor, Aldwych
       House, 71-91 Aldwych, London WC2B 4HN, England as its authorised agent to
       receive service of process. Service of any legal proceedings concerning
       or arising out of this Agreement shall be effected by causing the same to
       be delivered to that party's agent for service of process, to its
       principal place of business, to its registered office, or to such other
       address as may from time to time be notified in writing by the party
       concerned.

IN WITNESS WHEREOF, the parties hereto have caused their duly authorised
officers or signatories to execute and deliver this Agreement on the date first
above written.

BROADCASTING COMPANY "STUDIO 1+1"

By :     Name : /s/ Alexander Rodnyansky

         Title : General Director

UKRAINE ADVERTISING HOLDINGS BV

By :   Name : /s/ Fred T. Klinkhammer

       Title : Managing Director

INNOVA FILM GMBH

By :   Name : /s/ Boris Fuchsmann

       Title : General Director

INTERNATIONAL MEDIA SERVICES

By :   Name : /s/ Boris Fuchsmann

       Title : General Director

                                      -19-
<PAGE>

INTER MEDIA

By :   Name : /s/ Laurence Fry

       Title : Finance Director

SERVLAND CONTINENTAL S.A.

By:    Name: /s/ Dr. Christian Lamprecht
       Title: Sole Director

TREND ADVERTISING AGENCY LIMITED

By:    Name: /s/ Igor Matyushenko
       Title: General Manager

VIDEO INTERNATIONAL - KIEV LIMITED

By:    Name: /s/ Yuri Kogutyak
       Title: General Manager

PRIORITET LIMITED

By:    Name: /s/ Igor Purishev
       Title: General Manager

                                      -20-

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