Document:

Exhibit # 10.06a

                           Acquisition Agreement - GST

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                                                      ASSET PURCHASE AGREEMENT

              This Asset Purchase Agreement (the "Agreement"), dated April 28,
1999, is between GST UNIVERSAL Inc., a Delaware corporation ("Seller"), and
COMPETITIVE COMMUNICATIONS, INC., a California corporation ("Purchaser").

               On the terms and  subject to the  conditions  of this  Agreement,
Seller  intends  to sell and  Purchaser  intends to  purchase  all the assets of
Seller which are part of the private  telephone  systems  listed on Schedule 4.7
(individually a "System" and collectively the "Systems") that are subject to the
Lease and Access Agreements,  as defined below, and other assets as specified in
this Agreement.  The assets of each System include one or more  agreements,  and
any amendments and modifications thereto,  pursuant to which Seller has received
from the owner of the real  property  related  to the  System  the right to own,
install  and operate a private  telephone  system on the real  property  (each a
"Telephone Lease and Access Agreements").

     The parties agree as follows:

1.       TRANSFER OF ASSETS.

1.1             Sale of Assets.  On the terms and subject to the  conditions  of
                this  Agreement,  Seller  will sell  Seller's  right,  title and
                interest in and to the "Assets", as defined below, to Purchaser.
                All Assets sold under this  Agreement  will be free and clear of
                all liens,  claims and encumbrances except as otherwise provided
                in this Agreement.

           1.2  Description  of Assets.  The  "Assets"  are the assets of Seller
                which comprise the Systems, comprised of the Telephone Lease and
                Access  Agreements,  existing as of the date this  Agreement  or
                acquired by Seller  prior to Closing in the  ordinary  course of
                business.  Specifically, the Assets consist of (1) the assets of
                Seller  used to operate  the  Systems  including  its  telephone
                switching and voice mail equipment, all cable (including without
                limitation aerial cable and underground cable,  conduit, and all
                spare parts and other items used in the maintenance,  repair and
                testing of the Systems);  (2) Seller's right, title and interest
                in and to the Telephone  Lease and Access  Agreements  listed on
                Schedule 4.7; (3) business records pertaining to the subscribers
                of each Systems ("Customers"); and (4) all leases, easements and
                licenses to use real  property  and leases of personal  property
                disclosed on Schedule 1.2. The Assets  excludes all other items,
                including  without   limitation,   any  goodwill,   intellectual
                property or software.

1.3             Assignment and  Assumption.  Seller will assign to Purchaser and
                Purchaser will assume (1) each of the Telephone Lease and Access
                Agreements  listed  on  Schedule  4.7,  and  (2)  liability  for
                personal property taxes as apportioned  pursuant to Section 3.5.
                Purchaser's   assumption  of  all  obligations  and  liabilities
                described in this Section 1.3 will accrue following Closing (but
                not before).  Except as expressly  provided in this Section 1.3,
                Purchaser  assumes  no  liabilities  or debts of  Seller  of any
                nature whatsoever.

2.       PURCHASE PRICE.

           2.1  Purchase Price.  The purchase price  ("Purchase  Price") for the
                Assets is $450.00 per Active  Customer,  which is defined as any
                Customer  which  receives  a bill  from  GST as of the  date  of
                execution  of this  Agreement.  An  Active  Customer  shall  not
                include a Customer  billing at less than  $14.35 per month.  The
                current number of Active  Customers is 461. A Promissory Note in
                the amount of $207,450.00. Attached hereto as Exhibit 2.1. shall
                be delivered to GST upon execution of this Agreement,  and shall
                be in the name of Purchaser  and GST  Universal,  Inc. (or other
                GST subsidiary as specified by GST). The terms of the Promissory
                Note  shall  include:   (a)  10%  percent   interest  per  annum
                commencing at Closing,  (b) interest accrued and payable monthly
                over a period of sixty months,  (c) the first  interest  payment
                shall be payable in accordance  with the  Promissory  Note,  (d)
                principal shall be paid at the end of the sixty month period.

<PAGE>

3.       CLOSING.

         3.1  Closing.  The  closing  of  the  transactions  templated  by  this
         Agreement (the "Closing") will take place at 10:00 a.m.,  local time on
         (I) April 28, 1999,  or (ii) such earlier date as Seller and  Purchaser
         mutually agree in writing (the "Closing  Date").  The closing will take
         place at the  offices  of seller or at such  other  places as  mutually
         agreed by the parties of this Agreement.

         3.2   Deliveries  by  Seller.   At  Closing  Seller  will  execute  (if
         applicable)  and deliver (a) a Bill of Sale in the form attached hereto
         as  EXHIBIT  3.2 (a);  (b)  Telephone  Lease and Access  Agreements  as
         attached on EXHIBIT 3.2 (b); (c) releases of  financing  curements  and
         other  recorded  encumbrances  terminating  all liens and  encumbrances
         against, and security interest in, any of the Assets; (d) a certificate
         signed  by  Seller,  certifying  that  the  closing  conditions  to  be
         satisfied  by Seller  have been met as of  Closing;  and (e) such other
         documents  and  instruments  as  Purchaser  may  reasonably  require to
         effectuate or evidence the transfer of the Assets.

3.4      Possession.  Purchaser will take possession of the Assets as of the
         Closing Date.

3.5      Personal Property Taxes.  All personal property taxes attributable to
         any of the Assets will be apportioned as of Closing.

4.       REPRESENTATIONS AND WARRANTIES OF SELLER.  Seller, as of the date of
         this Agreement and as of the Closing Date, represents and warrants to
         Purchaser as follows.

         4.1      Organization.  Good Standing Power.  Etc.  Seller is a
         corporation duly organized, validly existing and in good standing under
         the laws of the state of Delaware.  Seller has all requisite corporate
         power and authority to execute, deliver and perform this Agreement.
         Seller has all requisite corporate power and authority to consummate
         the transactions contemplated by this agreement.

         4.2 Authorizations and Enforceability. This Agreement has been duly and
         validly  authorized,  executed and delivered by Seller and  constitutes
         the valid and  binding  obligation  of  Seller,  fully  enforceable  in
         accordance with its terms.

         4.3 Restrictions:  Burdensome Agreements.  Seller is not a party to any
         contract commitment or agreement, and neither Seller now the Assets are
         subject to or bound or  affected  by any  charter,  bylaw,  partnership
         agreement or other corporate or partnership  restriction,  or any other
         order, judgement,  decree, law, statute, ordinance, rule, regulation or
         other  restriction of any kind or character  which would prevent Seller
         from entering into this Agreement or from consummating the transactions
         contemplated by this Agreement.

         4.4 Contents and Approvals. As of Closing Seller will have obtained all
         consents  or  approvals  of and waivers or  revisions  by and will have
         delivered  all  notices  to any  third  party  that  are  necessary  in
         connection  with the execution and delivery by Seller of this Agreement
         and consummation of the transactions contemplated by this Agreement.

         4.5      Title to Property.

                  (a)      Tangible Personal Property.  Seller owns or has
                           licenses or other rights adequate to use all property
                           necessary for the operation of its business and the
                           Assets.

                  (b)      Title.  Seller has good and  marketable  title to the
                           Asset.  Any Asset  which  requires  the  consent of a
                           third party for  assignment to Purchaser is described
                           as such on SCHEDULE  4.5.  Every other Asset is fully
                           assignable  to  Purchaser  without the consent of any
                           other.

<PAGE>

         4.6      Condition of Assets.  The Assets were acquired and have been
         maintained in the ordinary course of its business: have been property
         maintained in accordance with industry standards  and are in good
         working condition.

         4.7 Telephone Lease and Access Agreements.  Stated on SCHEDULE 4.7 is a
         complete and  accurate  list of all of the  Telephone  Lease and Access
         Agreements  presently  owned by  Seller  which  constitute  part of the
         Assets.  A  complete  copy of each  such  Telephone  Lease  and  Access
         Agreement   (including   amendments   thereto)  has  been  provided  to
         Purchaser.  Each of the Telephone Lease and Access  Agreements is valid
         and binding is in full force and effect.  Neither  Seller nor any owner
         of a property  served by a  Telephone  Lease and Access  Agreement  ( a
         "Property  Owner")  is  in  default  under  any  Telephone  and  Access
         Agreement.

5.       REPRESENTATIONS AND WARRANTIES OF PURCHASER.  Purchaser as of the date
of this Agreement and as of the Closing Date, represents and warrants to Seller
as follows

         5.1      Organization.  Good Standing Power.  Etc.  Purchaser is a
         corporation duly organized, validly existing and in good standing under
         the laws of the state of California.  Purchaser  has all requisite
         corporate power and authority to execute, deliver and perform this
         Agreement.  Purchaser has all requisite corporate power and authority
         to consummate the transactions contemplated by this Agreement.

         5.2 Authorizations and Enforceability. This Agreement has been duly and
         validly authorized, executed and delivered by Purchaser and constitutes
         the valid and binding  obligation of Purchaser,  fully  enforceable  in
         accordance with its terms.

         5.3 Restrictions:  Burdensome  Agreements.  Purchaser is not a party to
         any contract  commitment or agreement,  and is not subject to our bound
         or affected by any charter,  bylaw,  or other  corporate,  or any other
         order, judgement,  decree, law, statute, ordinance, rule, regulation or
         other  restriction  of  any  kind  or  character  which  would  prevent
         Purchaser  from entering into this Agreement or from  consummating  the
         transactions contemplated by this Agreement.

         5.4 Effect of Agreement,  Consents, Etc. Purchaser has obtained any and
         all consents or approvals of filings or  registrations  with or notices
         to any third party or public body or authority that may be necessary in
         connection  with  the  execution  and  delivery  by  Purchaser  of this
         Agreement and the consummation of the transactions contemplated by this
         Agreement.

6.       COVENANTS OF THE PARTIES.

         6.1  Operation  of  Business.  During the period  from the date of this
         Agreement and the earlier of the  termination  of this Agreement or the
         Closing Date,  Seller  covenants to Purchaser  that it will operate its
         business with respect to the Assets in the usual,  regular and ordinary
         manner;  and,  to the extent  consistent  with such  operation  use its
         reasonable best efforts to preserve its present business  relationships
         including those with the Customers and the Property Owners. Seller will
         not enter into any transaction or take any action which would result in
         any of the  representations  and warranties of Seller contained in this
         Agreement  not  being  true  and  correct  at and as of  (I)  the  time
         immediately  after such action or transaction was undertaken or entered
         into with the same force and effects as though  made on such date,  and
         (ii) the Closing Date, with the same force and effect as though made on
         such a date.

         6.2 Consents.  Seller will give all notices,  and use its  commercially
         reasonable  best  efforts to obtain all  consents  necessary  under all
         Telephone Lease and Access Agreements and other material  contracts and
         leases to assign such telephone Lease and Access  Agreements,  material
         contracts and leases to Purchaser.

6.3      Access to Properties and Records; Confidentiality.

<PAGE>

         (a)      During the period from the date of this Agreement to the
                  earlier of the Closing Date or the termination Of this
                  Agreement, Seller will permit Purchaser reasonable access to
                  its Assets, and will disclose and make available to
                  Purchaser all books, papers and records relating to the
                  Assets.  Seller will not be required to provide access to
                  or disclose information where such access or disclosure would
                  jeopardize the attorney-client privilege of Seller or would
                  contravene any law, rule, regulation, order, judgment, decree
                  or binding agreement entered into prior to the date hereof.
                  The parties will make appropriate substitute disclosure
                  arrangements under circumstances in which the restrictions of
                  the preceding sentence apply.  Notwithstanding the foregoing.
                  Seller agrees to provide Purchaser with reasonable access to
                  reasonably requested information regarding the Assets in
                  Seller's files, for three months following the Closing Date,
                  to assist Purchaser in the transition of the Assets to
                  Purchaser.

(b)               All information  Furnished by Seller to Purchaser with respect
                  to any Asset pursuant to, or in the  negotiation in connection
                  with,  this  Agreement will be treated as the sole property of
                  Seller until Closing and, if Closing does not occur, Purchaser
                  and  its  agents  and  advisers  will  return  to  Seller  all
                  documents  or  other  materials  containing  ,  reflecting  or
                  referring to such information, will keep confidential all such
                  information  and  will not  directly  or  indirectly  use such
                  information for any competitive or other  commercial  purpose.
                  The  obligation  to keep such  information  confidential  will
                  continue indefinitely.

         6.4 Confidentiality of Terms of Agreement.  After the execution of this
         Agreement,  Purchaser and Seller will maintain the  confidentiality  of
         the  terms  of  this  Agreement.  No  such  party  will,  except  on  a
         need-to-know basis, disclose the terms of the transactions contemplated
         by this  Agreement  to any person or  entity.  The  foregoing  does not
         preclude such parties from  informing any other person or entity of the
         fact that the Systems,  the Telephone  Lease and Access  Agreements and
         other Assets  relating to the Systems will be or have been  transferred
         to  Purchaser,  so long as such  communication  does not  disclose  any
         further  details  regarding  the  transaction.  Any press release to be
         disclosed to the public  regarding the terms of this Agreement or which
         otherwise  includes the other  party's  name,  shall be reviewed by and
         agreed upon by both parties in writing prior to release.

6.5      Accounts Receivable Matters. Seller will retain all accounts receivable
         for  services  provided by Seller  through the date of Closing.  Seller
         will render final customer bills, with charges for services provided by
         Seller  through  the date of  Closing,  no later than  thirty (30) days
         following  the date of Closing.  Purchaser  will  commence  billing for
         services to be  provided  by the  Purchaser  after  Closing.  Following
         Closing,  Purchaser agrees to return any marketing  materials to Seller
         which specify "GST" or any other service marks or trademarks of Seller.

7.       CLOSING CONDITIONS

7.1               Conditions  to  the   Obligations  of  Purchaser   Under  this
                  Agreement.  The  obligations of Purchaser under this Agreement
                  with  respect  to  the  Assets  are  further  subject  to  the
                  satisfaction,  at  or  prior  to  the  Closing  Date,  of  the
                  following  conditions,  any one or more of which may be waived
                  by Purchaser.

                  (a) Each of the  obligations  and covenants of Seller required
                  to be performed or complied under or prior to the Closing Date
                  pursuant to the terms of this Agreement are duly performed and
                  compiled with in all material respects.

                  (b) The  representations and warranties of Seller contained in
                  this  Agreement are true and correct in all material  respects
                  as of the date of this  Agreement and will be true and correct
                  in all material  respect as of the Closing Date as though made
                  at end as of the Closing Date, except as to any representation
                  or warranty that specifically relates to an earlier date.

                  (c) Seller will have given all notices  obtained  all consents
                  and taken all other action necessary under all Telephone Lease
                  and Access  Agreements and other material  contacts and leases
                  to assign such Telephone Lease and Access Agreements material,
                  material  contracts and lease to Purchaser.  Without  limiting
                  the foregoing,  Seller will have obtained an executed  consent
                  in

<PAGE>

                  The form of Exhibit 7.1(C) with respect to the Telephone Lease
                  and Access  agreements for the Promontory Point and Promontory
                  View apartment complexes.

7.1           Conditions to the Obligations of Seller Under This Agreement.  The
              obligations  of Seller  under this  Agreement  with respect to the
              Assets are further subject to the satisfaction, at or prior to the
              Closing  Date,  of the  following  conditions,  any one or more of
              which may be wavered by Seller:

              (a) Each of the obligations and covenants of Purchaser required to
                  be performed or complied  with at or prior to the Closing Date
                  pursuant  to the terms of this  Agreement  will have been duly
                  performed and complied with in all material respects.

              (b) The  representatives  and warranties of Purchaser contained in
                  this  Agreement are true and correct in all material  respects
                  as of the date of this Agreement, and will be true and correct
                  in all material  respects as if the Closing Date's though made
                  at and as of the Closing Date, except as to any representation
                  or warranty which specifically relates to an earlier date.

8.       INDEMNIFICATION.

              Each party  hereto will defend  indemnify  and hold  harmless  the
         other party and any person  claiming by or through them or any of their
         successors  and assigns  (each an  "Indemnitee")  from,  against and in
         respects  of any and all costs,  losses,  claims,  liabilities,  fines,
         penalties,  damages and expenses (including,  without limitation, court
         costs,  reasonable  fees and  disbursements  of counsel with or without
         suit and on appeal) incurred by the Indemnitee in connection with:

         (a)      any breach of  (1) any of the representations and warranties
                  of the indemnifying party or (2) any covenant or agreement
                  made by the indemnifying party in this Agreement;
         (b)      with respect to a Seller Indemnitee,  obligations specifically
                  incurred  by  Purchaser  with  respect  to any Asset and which
                  arise  after  the  Closing  Date,  and (2) with  respect  to a
                  Purchaser   Indemnitee,   any   alleged  or   asserted   debt,
                  obligation,  liability or  commitment  of Seller not expressly
                  assumed by Purchaser hereunder: and

         (c)      any  action  ,  suit,  proceeding,   compromise,   settlement,
                  assessment  or  judgment  arising out of or incident to any of
                  the matters indemnified against in this Section 8.

9.       GENERAL.

9.1             Survival of Representations and Warranties. The representations,
                warranties,   covenants  (as   specified  in  this   Agreement),
                indemnities  and  agreements  stated  in  this  Agreement,   the
                Disclosure  Schedules,  any other written  representation and in
                any  ancillary  document  with respect to any Asset will survive
                Closing for a period of one year following the Closing Date.

9.2             Severability. Any provisions of this Agreement which are invalid
                or  unenforceable  will be  ineffective  to the  extent  of such
                invalidity or unenforceability without invalidating or rendering
                unenforceable theremaining provision hereof.

9.3             Further  Assurances.  Each party to this Agreement will take all
                actions,  subject to the terms and conditions of this Agreement,
                that are  necessary  or  desirable  to carry out the purposes of
                this Agreement, including actions after Closing.

9.4             Notices.  All  notices,   requests,  claims,  demands  or  other
                communications hereunder must be in writing and must be given by
                delivery in person,  by  registered  or certified  mail (postage
                prepaid and return receipt  requested) to the respective parties
                as follows:

               (a)      If to Seller, to:

<PAGE>

                  GST Universal, Inc.
                  Attn: Contracts Manager
                  4001 Main Street
                  Vancouver, WA 98663
               (b)If to Purchaser, to:
                  Competitive Communications, Inc.
                  Attn: David Kline, CEO
                  11731 Sterling Avenue, Suite F
                  Riverside, California 92503

     Or such other  address as is furnished in writing by any party to the other
     party in accordance  herewith,  except that notices of change of address is
     only effective upon receipt.

9.5  Parties in Interest;  Assignment.  This  Agreement will be binding upon and
     will inure to the  benefit  of the  parities  hereto  and their  respective
     successors  and  assigns.  Neither  this  Agreement  nor any of the rights,
     interests or obligations  hereunder may be assigned by either party without
     the prior  written  consent of the other,  which shall not be  unreasonably
     withheld.  Nothing in this Agreement is intended to confer, expressly or by
     implication,  upon any other  person  any  rights or  remedies  under or by
     reason of this Agreement

9.6  Entire  Agreement;  Amendment.  This  Agreement  (including the Exhibit and
     Disclosure   Schedules   hereto)   constitutes  the  entire  agreement  and
     supersedes  all prior  agreements  and  understandings,  oral and  written,
     between the parties  hereto with respect to the subject  matter  hereof and
     may not be amended,  modified or terminated unless in a written  instrument
     executed by the party or parties sought to be bound.

9.7  Venue.  Any dispute  arising from this  Agreement  shall be brought  solely
     within the courts of Clark County, state of Washington,  unless the federal
     jurisdiction  applies,  in which such dispute  shall be brought  within the
     federal courts of Washington, Western District.

9.8  Attorney's  Fees.  If any legal  action or other  proceeding  is brought to
     enforce  the terms of this  Agreement  (whether  or not suit is brought and
     including any appeal) the  prevailing  party or parties will be entitled to
     reasonable  attorney's  fees and other costs and expenses  incurred in that
     action or proceeding.

9.9  Governing Law.  This Agreement, in all respects, including all matters of
     construction, validly and performance, is governed by the laws of the state
     of Washington.

<PAGE>

9.10     Counterparts.  This Agreement may be executed in one or more
counterparts, all of which will be considered one and the same agreement, and
each of which will be deemed an original

SELLER:                          GST UNIVERSAL, INC

                                 BY:________________________________________
                                     Joseph A. Basile, Jr., President and CEO

                                 BY:________________________________________
                                     Daniel Trampush, Chief Financial Officer

PURCHASER:                       COMPETITIVE COMMUNICATION, INC.

                                 BY:________________________________________
                                            David Kline, CEO
<TABLE>
<CAPTION>

<S>     <C>      <C>                                <C>       <C>      <C>

         EXHIBITS:                                             SCHEDULES:

Exhibit 2.1       Promissory Note                    Schedule 1.2      Lease, Easements and Licenses

                                                     Schedule 4.5      Third Party Consents

Exhibit 3.2(a)    Bill of Sale                       Schedule 4.7      Telephone Lease and Access Agreements
Exhibit 3.2(b)    Assignment and Assumption
                  Telephone Lease and Access Agreements
Exhibit 7.1(c)    FORM OF CONSENT

</TABLE>
<PAGE>

Exhibit 2.1
                                            PROMISSORY NOTE

$207,450.00

                                               Date: April 28, 1999

         For value received, the undersigned  COMPETITIVE  COMMUNICATIONS,  INC.
         ("the  Promisor")  promises to pay to the order of GST UNIVERSAL,  INC.
         (the  "Payee"),  at 4001 Main Street,  Vancouver,  WA 98663 (or at such
         other  place  as the  Payee  may  designate  in  writing),  the  sum of
         $207,450.00  together with interest thereon from April 28, 1999, on the
         unpaid principal at the rate of 10%.

         Unpaid  principal shall accrue interest at a rate of 10% annually until
         paid.

         Promisor  shall pay interest on the total  principal  amount in MONTHLY
         installments for SIXTY MONTHS beginning on May 15, 1999, payable by the
         fifteenth of each subsequent month thereafter.

         All  payments  shall be applied to  interest  until April 28, 2004 (the
         "Due  Date"),  when the  principal  shall be due and  payable  in full.
         Thereafter,  unless the  principal is paid in full,  Promisor  shall be
         deemed in default of this Note, and any unpaid  principal  shall accrue
         interest  at a rate of 15%  annually  until paid.  Notwithstanding  the
         Foregoing,  Promisor  may pay the  principal  in full  prior to the Due
         Date, with no further obligation to pay interest thereafter.

         In the event Promisor fails to make any payment when due, is subject to
         receivership, causes to be made a general assignment for the benefit of
         creditors,  or other wise  causes  Payee to become  insecure,  then the
         Payee shall be entitled to accelerate all sums due and owing under this
         Note, and require immediate payment if notification from Payee.

         In the event  Promisor  defaults  in any  obligation  under  this Note,
         Promisor  promises to pay, in addition to all other sums due,  costs of
         collection,  including reasonable attorneys' fees, whether or not legal
         action  is  commenced.   Legal  action  includes,  without  limitation,
         arbitration,  trial and appeal,  or any bankruptcy in which Promisor is
         involved.

         In  addition,  the  Promisor  shall be in  default  if there is a sale,
         transfer, assignment, or any other disposition of any assets pledged as
         payment of this Note.

         If any one or more of the  provisions of this Note are determined to be
         unenforceable,  in whole  or in part,  for any  reason,  the  remaining
         provisions shall remain fully operative.

<PAGE>

         All  payments of  principal  and interest on this Note shall be paid in
         the legal currency of the United States.  Promisor  waives  presentment
         for  payment,  protest,  and notice of protest and  nonpayment  of this
         Note.

         No renewal or extension of this Note,  delay in enforcing  any right of
         the Payee under this Note,  or  assignment  by Payee of this Note shall
         affect the  liability  of the  Promisor.  All rights of the Payee under
         this  Note  are  cumulative  and  may  be  exercised   concurrently  or
         consecutively at the Payee's option.

         This Note shall be construed in  accordance  with the laws of the State
         of  Washington.  Any  dispute  under this note shall be brought  solely
         within  the  courts  of the Clark  County,  Washington,  or if  federal
         jurisdiction applies the Western District of Washington.

         Signed this 28th day of April, 1999.

         Promisor

         COMPETITIVE COMMUNICATIONS, INC.

         By:_________________________________________________

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

<PAGE>

         Exhibit 3.2(a)

                                  BILL OF SALE

         ("Seller"),  for good and valuable  consideration  given pursuant to an
         Asset   Purchase   Agreement   dated  April  28,  1999  (the  "Purchase
         Agreement")    between   GST   Universal,    Inc.,   and    Competitive
         Communications,  Inc.  ("Purchaser"),  the receipt and  sufficiency  of
         which consideration is hereby  acknowledged,  does hereby sell, assign,
         transfer and set over to  Purchaser,  in  accordance  with the Purchase
         Agreement,  all of  Seller's  right,  title and  interest in and to the
         Systems (as defined in the Purchase  Agreement)  and related  equipment
         installed at the apartment complexes described on Schedule 4.7 attached
         hereto.

         Date:  April 28, 1999.
         SELLER:                 GST UNIVERSAL, INC.

                                 By: _________________________________________
                                     Joseph A. Basile. Jr., President and COE

<PAGE>

         Exhibit 7.1(c)

                                            CONSENT

                  This Consent is executed by John  Sullivan  ("Owner"),  who is
         the  Owner  of the  multi-family  residential  complex  known  as  (the
         "Property"),  located at 3300 Promontory Way, San Ramon,  CA, the legal
         description of which is attached hereto as Exhibit A.

                  GST Telecom Inc., a Delaware corporation ("Operator"), is the
         provider of telephone service to the Property under a Telephone Lease
         and Access Agreement dated November 1, 1996.

                  Competitive  Communications,  Inc., a  California  corporation
         ("CCI") intends to acquire Operator's  interest in Agreement and all of
         the assets of  Operator  which are part of or related to the  telephone
         system on the Property,  including all  Operator's  wiring,  electronic
         devices, hardware and other equipment.

                  Owner  represents  and warrants that as of the date hereof (a)
         the Agreement is in full force and effect and there are no  amendments,
         modifications or supplements thereto, either oral or written; (b) Owner
         has not  assigned,  transferred  or  hypothecated  the Agreement or any
         interest  therein,  except as described  herein;  and (c) no default or
         event exists with  respect to the  Agreement  that,  with notice or the
         passage  of  time or  both,  would  result  in the  termination  of the
         Agreement.  Owner irrevocably consents to the assignment by Operator of
         its rights, title and interest in the Agreement to CCI.

                  DATED 4/13/1999.

                                           PROPERTY OWNER:

                                           By:_________________________________
                                                      Title
<PAGE>

         Exhibit 7.1 (c)

                                          CONSENT

                  This Consent is executed by BRE  PROPERTIES,  INC.  ("Owner"),
         who is the owner of the multi-family residential complex known as ("the
         Property"),  located as 1700 Promontory  Terrace,  San Ramon, CA 94583,
         the legal description of which is attached hereto as Exhibit A.

                  GST Telecom Inc., a Delaware corporation ("Operator"), is the
         provider of telephone service to the Property under
         a Telephone Lease and Access Agreement dated November 1, 1996.

                  Competitive  Communications,  Inc., a  California  corporation
         ("CCI") intend to acquire Operator's  interest in the Agreement and all
         of the  assets  of the  Operator  which are part of or  related  to the
         telephone  system on the  Property,  including all  Operator's  wiring,
         electronic devices, hardware and other equipment.

                  Owner  represents  and warrants that as of the date hereof (a)
         the Agreement is in full force and effect and there are no  amendments,
         modifications or supplements thereto, either oral or written; (b) Owner
         has not  assigned,  transferred  or  hypothecated  the Agreement or any
         interest  therein,  except as described  herein;  and (c) no default or
         event exists with  respect to the  Agreement  that,  with notice or the
         passage  of  time or  both,  would  result  in the  termination  of the
         Agreement.  Owner irrevocably consents to the assignment by Operator of
         its right, tittle and interest in the Agreement to CCI.

                  DATED 4/8/1999.

                                    PROPERTY OWNER:

                                    By:________________________________________

<PAGE>

ASSIGNMENT AGREEMENT

This Assignment Agreement (the "Agreement") is entered into and between GST
Universal, Inc., a Delaware corporation, and GST Telecom, Inc., a Delaware
corporation.

Whereas, the property owners of Promontory Way and Promontory Terrace have each
consented to the assignment of certain Telephone Lease and Access Agreements
(the "Consents") from GST Telecom Inc. to Competitive Communications, Inc.; and

Whereas, GST Telecom Inc. desires to assign said consents to GST Universal, Inc.
to complete a proposed transaction between GST Universal, Inc. and Competitive
Communications, Inc.

Therefore, the parties agree as follows:

1.       GST Telecom Inc., hereby assigns all right, title and interest to that
         certain Consent for Promontory Terrace dated April 8, 1999, to transfer
         the Telephone Lease and Access Agreement dated November 1, 1996, to
         Competitive Communications, Inc., a California corporation.

2.       GST Telecom Inc., hereby assigns all right, title and interest to that
         certain Consent for Promontory Way dated April 13, 1999, to transfer
         the Telephone Lease and Access Agreement dated November 1, 1996, to
         Competitive Communications, Inc., a California corporation.

         AGREED TO BY THE PARTIED THIS 28th DAY OF APRIL, 1999.

         GST TELECOM INC.

         --------------------------------------------------
         Joseph A. Basile, Jr., President and CEO

         GST UNIVERSAL, INC.

         ----------------------------------------------------
         Daniel Trampush,. Chief Financial Officer

<PAGE>

                                  SCHEDULE 1.2

                         Leases,  Easements and licenses to use real property an
lease or personal property.

                                      NONE

                                  SCHEDULE 4.5

                              Third Party Consents

1. The Telephone Right of Entry Agreements with respect to the Promontory Pointe
   Apartments and Promontory View  Apartments  require the consent of the owners
   for assignment.

                                  SCHEDULE 4.7

                      Telephone Lease and Access Agreements

                         Two   telephone   and   Television   Lease  and  Access

Agreements, dated November 1, 1996.

                                Promontory Pointe Apartments - 400 units

                                Promontory View Apartments - 306 units

<PAGE>Exhibit # 10.06b

                           Acquisition Agreement - GST

<PAGE>

                            TELEPHONE AND TELEVISION

LEASE AND ACCESS AGREEMENT

         Description of Property:  Promontory Point Apartments consisting of 400
         apartment  units,  at the corner of Deerwood Road and Deerwood Place in
         San Ramon, in the County of Contra Costa, State of California.

         This Telephone and Television Lease and Access Agreement ("Agreement"),
is entered into as of this 1st day of November 1996 ("Effective  Date"),  by and
between  Crow  Canyon  Developers,   Ltd.,  a  California  limited  partnership,
hereinafter  called  "Lessor,"  and GRI  Telecommunications,  Inc., a California
corporation, hereinafter called "Lessee."

                                                     RECITALS

This Agreement is made with respect to the following facts and circumstances:

         A.  Lessor  is  the  owner  and  developer  of a  certain  multi-family
residential apartment complex located in San Ramon, California commonly known as
Promontory  Point  Apartments   consisting  of  400  apartment  units  and  more
particularly  described on Exhibit "A" attached  hereto.  Such project is herein
sometimes referred to as the "Project."

         B. The Lessor has developed the Project in  conjunction  with a related
and  adjacent  project  consisting  of 306  apartment  units  commonly  known as
Promontory- View Apartments (the "Related Project").

         C. Lessee is engaged in the business of installing  and operating
private  telephone  systems and private television systems within apartment
complexes similar to the Project.

         D.  Lessor  and  Crow  Canyon  Communications,   a  California  general
partnership   ("Communications"),   entered  into  that  certain  Telephone  And
Television  Room  Lease And  Access  Agreement  dated  August  8,  1992  ("Prior
Agreement") pursuant to which Communications installed portions of the telephone
and television systems employed at the Project. Communications (or Lessee as its
successor-in-interest)  has operated the telephone and television systems at the
Project  pursuant to the provisions of the Prior  Agreement.  In connection with
the entry of Lessor and Lessee into this Agreement, the Prior Agreement is being
terminated.  The television system installed at the Project, including both that
portion  of the  system  installed  by Lessee  (or its  predecessor-in-interest)
hereunder and that portion of the system installed by Lessor is herein sometimes
referred to as the "Television  System".  The telephone  system installed at the
Project,  including  'a both that  portion  installed by Lessee and that portion
installed by Lessor is sometimes referred to as the "Telephone System".

         E. In  connection  with the  operation  of the  Television  System  and
Telephone  System at the Project,  Lessor desires to lease a certain  portion of
the Project to Lessee and to grant Lessee  certain  other rights as set forth in
this  Agreement  and  Lessee  desires  to lease the  identified  portion  of the
Project, accept the other rights with respect to the Project as described herein
and otherwise perform the obligations of Lessee as set forth in this Agreement.

         In consideration  of the mutual promises  contained below and for other
good and valuable consideration, it is hereby agreed as follows:

<PAGE>

                                                     Article I
                                              Premises; Utility Areas

1.1 Premise. Lessor hereby leases to Lessee and Lessee hereby leases from Lessor
the  portion  of the  Project  which is  commonly  known as the  "Telephone  and
Television Equipment Room" which is described on Exhibit "B" attached hereto and
incorporated herein by this reference. Such area is sometimes referred to herein
as the  "Premises."  The  Premises is to be used for the purpose of  installing,
operating,   servicing  and  repairing  the  private  telephone  and  television
utilities  and  equipment  described  on  Exhibits  "C" and "C-1"  (referred  to
collectively  as the  "Telephone and  Television  Equipment").  The equipment as
described on Exhibit "C" relating to the  Television  System shall  sometimes be
referred to as the "Television Equipment" and the equipment described on Exhibit
"C-1"  relating to the  Telephone  System shall  sometimes be referred to as the
"Telephone Equipment".

         In addition to the Telephone and Television  Equipment installed in the
Premises,  the Premises is to be used for the purpose of installing,  operating,
servicing  and  repairing the private  telephone  and  television  utilities and
equipment as described on Exhibit C-2 (referred to  collectively as the "Related
Project  Telephone and Television  Equipment") which equipment is being and will
be employed in connection with the Related Project.

1.2  Utility  Areas.  In addition to the lease of the  Premises,  Lessor  hereby
grants to Lessee  nonexclusive  access to the areas  marked on Exhibit  "D" (the
"Utility  Areas") for the placement and repair of wires,  cable and  accessories
necessary to provide the telephone and television  services as described in this
Agreement.  Lessee  shall have the right of free access to the Utility  Areas to
inspect,  maintain,  install,  replace  and  repair  the  wire,  cable and other
accessories  associated with the Telephone System and the Television  System and
to the remainder of the Project for the purpose of repair and maintenance of the
wiring,  cable  and  accessories  relating  to  the  Telephone  System  and  the
Television  System,  and for the  purpose  of  repairing  and  maintaining  such
systems,  and for the  purpose  of  collecting  receipts  for its  services  and
otherwise  dealing with tenants within the Project.  The access of Lessee to the
apartment  units in the Projects  hall be restricted  to normal  business  hours
after  reasonable  notice (except by appointment  for after business  hours) and
such  other  restrictions  as are from time to time  reasonably  imposed  by the
Lessor or its designated agents.

1.3 Related Project.  It is acknowledged that a portion of the equipment located
within the Premises relates to telephone services and television  services which
are being  provided or will be provided in connection  with the Related  Project
currently owned by Lessor  consisting of a 306 unit apartment  project ("Related
Project"). Lessee, and its successors-in-interest,  shall be entitled to install
and maintain  such  equipment  in the Premises and further  entitled to service,
repair and  otherwise  deal with such  equipment  within the Premises for and on
behalf of the systems maintained in connection with the Related Project.  Lessee
shall in addition  have free access to the Utility  Areas to inspect,  maintain,
install,  replace and repair the wire,  cable and other  accessories  associated
with the television  system and telephone  system  maintained in connection with
the  Related  Project and shall  further  have  access to the  remainder  of the
Project  for the  purpose of repair and  maintenance  of the  wiring,  cable and
accessories relating to such systems in connection with the Related Project.

                                                     Article 2
                                                       Term

2.1 Term. The term of this Agreement shall commence as of the Effective Date and
shall  expire  on  December  31,  2005 and shall not be  earlier  terminated  or
cancelled except as hereinafter provided.

<PAGE>

                                                     Article 3
                                                 Exclusive Control

3.1  Exclusive  Right.  Lessee  shall have the sole and  exclusive  control  and
possession  of the Premises and the  exclusive  right to provide  telephone  and
television service to all residents within the boundaries of the Project. Lessor
shall not  install  or use,  nor  permit  any  tenant or other  person,  firm or
corporation to install or use any equipment  similar to or intended for the same
use as the Telephone and Television  Equipment (whether coin operated or not) in
the  Premises or elsewhere  on the  Project.  During the term of the  Agreement,
Lessee shall have the  exclusive  right to install  equipment  for telephone and
television  purposes on or about the Project.  Notwithstanding any provisions to
the contrary  contained in this  Agreement,  including  without  limitation  the
provisions  set forth in this  paragraph  3.1,  Lessor shall be entitled to make
available to Tenants of the Project alternate  telephone and television services
to the extent required by applicable law. It is acknowledged that applicable law
currently  requires  that  alternate  telephone  services be made  available  to
tenants of the Project.

3.2 Condition of Premises.  Lessee hereby  accepts the Premises in the condition
existing as of the Effective Date subject to all applicable  zoning,  municipal,
county  and state  laws,  ordinances  or  regulations  governing  the use of the
Premises.

                                                     Article 4
                                                       Rent

4.1  Rent.  Lessee  shall  pay  to  Lessor  as  tent  for  the  Premises  and as
consideration  for the other  rights as  granted  to  Lessee  hereunder  monthly
payments as scheduled on Exhibit "E" of a  percentage  of the gross  receipts of
Lessee from time to time in connection  with both the Television  System and the
Telephone  System  which  percentages  vary in  accordance  with the  number  of
apartment units within the Project using the Television  System and/or Telephone
System.  Monthly  payments  shall be paid in  arrears  and are due ten (10) days
following the closing of each monthly  billing cycle which closing occurs at the
end of each calendar month.  Lessee shall pay to Lessor a late charge of one and
one-half  percent (1.5%) of the amount due for any monthly  payment not received
within five (5) business  days of the due date.  Lessee shall provide to Lessor,
along  with  the  monthly  rental  payment,  a  report  showing  the  number  of
subscribers  and  gross  monthly  receipts  for both the  Telephone  System  and
Television System.

4.2 Audit.  Lessor shall have the right to audit Lessee's gross receipts no more
frequently  than  twice in any twelve  (12) month  period in order to verify the
amount of gross receipts.  Lessee shall cooperate with Lessor in connection with
any audit of its  receipts and shall make  available to Lessor such  information
and records as are reasonably requested by Lessor. If any audit shows that there
is a  deficiency  in the payment of rent,  the  deficiency  shall become due and
payable fifteen (15) days following written demand from Lessor, accompanied by a
statement showing the amount due. The costs of any audit shall be paid by Lessor
unless the audit discloses that Lessee shall have understated its gross receipts
by three percent (3%) or more, in which case Lessee shall pay all Lessor's costs
of the audit.  Further,  notwithstanding  the above provisions of this Paragraph
4.2 to the  contrary,  in the event any audit  discloses  that Lessee shall have
understated  its gross receipts by three percent (3 %) or more,  Lessor shall be
entitled  to audit  Lessee's  gross  receipts  as often as four (4) times in the
ensuing  twelve (12) month period.  If any two (2) audits during any twelve (12)
month period  disclose that Lessee has understated its receipts by three percent
(3 %) or more,  Lessor may  terminate  this  Agreement  and Lessee  shall remain
liable for the deficiency and cost of audit as herein  provided.  The acceptance
by Lessor of any monies paid to Lessor by Lessee as rent hereunder,  as shown on
any statement furnished by Lessee,  shall not be an admission of the accuracy of
such statement or the sufficiency of the amount paid by Lessee.

<PAGE>

4.3 Receipts.  The term "gross receipts" as used herein shall refer to the gross
amount as received from time to time by Lessee in connection with or relating in
any fashion to the operation of the Telephone  System and  Television  System at
the Project.  Such receipts shall include but not be limited to: (i) all monthly
fees as paid by tenants of the Project in connection  with the Telephone  System
and the Television System; (ii) all "hook-up" charges or other like charges paid
by the tenants of the  Project;  (iii) all late charges or penalties of any kind
as paid by the tenants of the  Project;  and (iv) any and all other  receipts or
charges of any kind whatsoever  received by Lessee relating to or arising out of
the Telephone System and/or Television System at the Property. In the event that
Lessee is no longer  providing  services in connection with either the Telephone
System or Television  System pursuant to this Agreement,  then "gross  receipts"
thereafter  shall refer only to the system for which Lessee continues to provide
services.

4.4 Taxes.  Lessee  shall have the right to deduct from the gross  receipts  all
taxes (except income or other like taxes upon Lessee's net income or profit) and
fees imposed on the  Telephone  System or  Television  System and on the revenue
generated by the Telephone System or Television System at the Project.

                                                     Article 5
                                                       Taxes

5.1 Real  Property  Taxes.  Lessor  shall  pay any and all real  property  taxes
associated with the Premises or otherwise  associated  with the Project.  Lessee
shall have no responsibility for any such taxes.

5.2  Personal   Property.   Lessee  shall  pay  before  delinquency  all  taxes,
assessments,  license fees and public charges levied, assessed or imposed on its
business  operation as well as upon all trade fixtures,  leasehold  improvements
and other  personal  property in or about the Premises  and the Project.  Lessee
shall  comply  with the  provisions  -of any law,  ordinance  or rule of  taxing
authorities  which requires Lessee to file a report of Lessee's property located
at the Project.

                                                     Article 6

                                                        Use

6.1  Purpose.  Lessee  shall use the Premises and shall employ its access to the
Project solely in connection  with the purposes  contemplated  by this Agreement
and for no other purpose. During the term hereof, Lessee shall keep the Premises
clean and free of any objectionable noises, odors or nuisances, and Lessee shall
at all times comply with any and all health and police regulations applicable to
the  Premises.  Lessee  shall not  install  any  exterior  lighting  or make any
exterior  painting  or  install  any  exterior  radio  or  television  antennae,
loudspeakers  or similar devices on the exterior of the Premises or elsewhere in
the  Project,  or make any  changes  on the  exterior  of the  Premises  without
Lessor's prior written consent. It is acknowledged that as of the Effective Date
Lessee maintains certain satellite dishes located at the Project and that Lessor
has consented to the location and maintenance of such dishes.

6.2 Restrictions.  Lessee shall not do or permit anything to be done in or about
the  Premises  which will in any way  obstruct or  interfere  with the rights of
other  tenants or occupants  of the  Project,  or injure or annoy them or use or
allow the Premises to be used for any  unlawful or  objectionable  purpose,  nor
shall Lessee cause, maintain or permit any nuisance in, on or about the Premises
or the Project.  Lessee shall not commit or suffer to be committed  any waste in
or upon the Premises or the Project. Lessee shall not use the Premises or permit
anything  to be done in or about the  Premises  or Project  that will in any way
violate any law,  statute,  ordinance  or  governmental  rule or  regulation  or
requirement of duly  constituted  public  authorities  now in force or which may
hereafter be enacted. Lessee agrees that it shall comply with

<PAGE>

all fire  and  security  regulations  that may be  issued  from  time to time by
governmental  authorities  and shall provide  Lessor with a name of a designated
responsible  employee to represent Lessee in all matters pertaining to such fire
or security  regulations.  Lessee  shall at its sole cost and expense  determine
from time to time, whether it is in compliance with the foregoing,  shall obtain
all necessary governmental approvals and permits, and shall promptly comply with
all  laws,  statutes,   ordinances  and  governmental  rules,   regulations  and
requirements  now in force or which  may  hereafter  be in  force,  and with the
requirements  of any board of fire  underwriters  or other  similar  body now or
hereafter  constituted relating to or affecting the condition,  use or occupancy
of the Premises,  excluding  structural changes not relating to or affecting the
condition, use or occupancy of the Premises.

6.3 Hazardous Material.  Lessee shall not cause or permit any hazardous material
to be brought upon, kept or used on or about the Premises or Project.  If Lessee
breaches its  obligations  as stated in the  preceding  sentence and such breach
results in  contamination  of the  Premises  or  Project  or any  portion of the
Project by  hazardous  material,  then Lessee shall  indemnify,  defend and hold
Lessor harmless from all claims, judgments,  damages, penalties,  liabilities or
losses of any kind whatsoever  (including  without  limitation  attorneys' fees)
which arise  during or after the term of this  Agreement  as the result of or in
connection with such  contamination.  The obligations of Lessee  hereunder shall
survive the termination of this Agreement.  As used herein,  the term "hazardous
material" means ally hazardous or toxic substance, material or waste which is or
becomes regulated or defined as "hazardous" or "toxic" by any local governmental
authority, the State of California or the United States Government.

                                                     Article 7

                                                     Utilities

7.1  Availability.  Lessor  agrees  that it will cause to be made  available  to
Lessee in connection with the Premises the  distribution of utilities  including
electricity,  air  conditioning,  venting and ventilation  substantially as such
utilities  exist with respect to the Premises as of the Effective Date. The cost
of any and all  utilities as provided to the Premises  shall be borne by Lessor,
provided  that to the  extent  that  electricity  provided  to the  Premises  is
separately metered; the cost of the electricity shall be borne by Lessee.

7.2  Trash.  Lessee  shall  store  all  trash and  garbage  within  the areas as
established  by Lessor for such  purposes  within the Project.  Lessee shall not
allow refuse, garbage or trash to accumulate outside the Premises.

7.3 Limited Liability.  Lessor shall not be liable to Lessee or any other person
for, and neither  shall Lessee nor any other person be entitled to any abatement
or reduction of rent or damages, direct or indirect, because of any reduction or
suspension in the utility services if required by any governmental authority, or
Lessor's  failure or inability  to furnish any service or  facility,  Lessor has
agreed to supply,  when such failure is caused by accident,  breakage,  repairs,
alterations or improvements,  strikes, acts of God,  governmental  preemption or
any other cause similar or dissimilar  beyond the reasonable  control of Lessor.
Lessor shall not be liable under any circumstances for any loss of or any injury
to person,  property or business,  however  occurring,  through or in connection
with or  incidental  to any  failure  described  above to furnish any service or
facility, nor shall any such failure be construed as eviction of Lessee in whole
or in part.

<PAGE>

                                                     Article 8
                                                      Repairs

8.1  Repair  by  Lessee.   Lessee  will  at  its  cost  provide  janitorial  and
housekeeping services, maintenance and repair for the Premises, and will perform
all  future  improvements  at  its  sole  cost.   Notwithstanding  the  sentence
immediately  above, the obligation of Lessee to repair and maintain the Premises
shall be limited to  maintenance  and repair of the interior of the Premises and
shall not include the roof, exterior walls or structural aspects of the Premises
except in the event  that any such  damage  is  caused  by or  results  from the
negligence of Lessee or its agents or employees,  in which event Lessee shall be
obligated to make such repairs. In addition,  Lessee shall have no obligation to
replace the Premises  (exclusive of the Telephone and  Television  Equipment) in
the event of partial or complete destruction of the Premises.

         In addition to the above,  Lessee shall at its cost maintain and repair
any and all HVAC equipment servicing the Premises,  provided that such equipment
serves only the Premises and not other portions of the Project. To the extent of
any warranty on HVAC equipment serving only the Premises, Lessor shall cooperate
with Lessee to enforce  the  warranty  obligations  of the  manufacturer  and/or
installer.

8.2 Repair by Lessor. Subject to reasonable wear and tear and Lessee's duties to
repair the  Premises as set forth in this  Article,  Lessor  shall  maintain and
repair the  exterior  walls,  roof and the  exterior  portions of the  Premises.
Lessor  shall in  addition  be  responsible  for the  repair of any and all HVAC
equipment relating to the Premises except as otherwise provided in Paragraph 8.1
and  except  in  connection  with  any  matters  caused  or  resulting  from the
negligence of Lessee or its employees or agents,  in which event Lessee shall be
obligated to make such repairs.

8.3 Removal Upon  Termination.  -Upon  expiration or early  termination  of this
Agreement, Lessee shall have the right to remove the Telephone and/or Television
Equipment and fixtures as shall have been  installed,  furnished and supplied by
Lessee in said leased  Premises  subject to the  provisions  of  Paragraph  13.4
below,  it being expressly  understood and  acknowledged by Lessor that title to
and the ownership of all such  equipment and fixtures  shall at all times be and
remain in and with Lessee,  whether the same or any parts  thereof be affixed to
the realty or otherwise. Lessee shall repair any damage caused by the removal of
its equipment -and  fixtures,  including  replacement of landscaping  removed or
damaged by Lessee. Under no circumstances shall Lessee remove wire in the walls,
jacks in  buildings or any  underground  wire or cable.  In  addition,  under no
circumstances  shall Lessee remove,  by reason of termination of this Agreement,
any of the Related  Project  Telephone  and  Television  Equipment or any of the
telephone  lines or cabling  employed in  connection  with the  Related  Project
Telephone  and  Television   Equipment   including,   without  limitation,   the
approximately  600 pairs of telephone  lines and one  television  cable  running
through the Premises for the benefit of the Related Project.

8.4 Liens.  Lessee shall keep the Project and Premises and building in which the
Premises is located free from any liens arising out of work performed, materials
furnished or obligations incurred by Lessee, and shall protect,  indemnify, hold
harmless  and defend  Lessor from any liens or  encumbrances  arising out of any
work performed by Lessee or at its direction.

                                                     Article 9
                                                 Duties of Lessee

9.1    Installation.    It   is    acknowledged-    that    Lessee    (or    its
predecessor-in-interest),  pursuant to the Prior  Agreement,  has  installed the
Television  Equipment  and Telephone  Equipment  described on Exhibits C and C-1
respectively  together with wire and accessories  necessary to provide Telephone
and Television services

<PAGE>

for the Project. It is acknowledged that Lessor has installed certain wiring and
cable at the Project in connection with the Telephone  System and the Television
System.

9.2  Maintenance.  Lessee shall  service and maintain in good working  order all
Telephone  and  Television  Equipment  and all  wiring,  cable and  accessories,
whether  installed by Lessor or Lessee,  constituting a portion of the Telephone
System and/or Television System at its sole cost and expense.  Lessor shall have
no  obligation of any kind  whatsoever  for  maintenance  and repair of any such
equipment  or any  portions  of either the  Telephone  System or the  Television
System.  III no event shall Lessor have any  responsibility for any of the costs
of such repair and  maintenance.  In the event of damage to any of the Telephone
and Television  Equipment or any of the wiring, cable or accessories employed in
connection with the Telephone System or Television System arising by reason of a
casualty or damage or destruction, Lessee shall be obligated at its sole cost to
replace  and/or repair such damaged  equipment,  wiring,  cable or  accessories;
provided,  'only that any such damage resulting from the negligence of Lessor or
its employees or agents shall be the  responsibility of Lessor.  Lessee shall be
entitled to employ and shall employ any and all proceeds  payable in  connection
with insurance  maintained  pursuant to this  Agreement  available in connection
with the damage or destruction of any of the Telephone and Television  Equipment
or any of the wiring,  cabling of accessories  as described  above to offset the
cost of repair and/or replacement of such equipment and/or accessories.

9.3 Tenant  Installation.  Lessee  shall  service and  actively  market both the
Television  System and the Telephone  System to all tenants  within the Project.
Lessee shall provide at its sole cost, all installation  services required as to
each tenant  within the Project and all  accessories  as required in  connection
with the "hook-up" of each of the tenants within the Project. Lessee at its sole
cost shall respond to any and all reasonable  inquiries or  requirements  of the
tenants within the Project relating to the Telephone System or Television System
and shall respond within  twenty-four  (24) hours of notification to all service
calls,  excluding Sundays and national holidays, in which case response shall be
made on the immediately succeeding business day.

9.4  Charges.  Lessee at its sole cost  shall be  responsible  for  billing  all
tenants  within the Project for Telephone and Television  services  provided and
for  collecting all monies due in connection  with such  services.  Lessor shall
have no  responsibility of any kind whatsoever for the obligations of any tenant
in connection with either the Telephone System or the Television System.

9.5 Insurance.  Lessee shall maintain at its cost liability  insurance  covering
injury to persons and damage to property (including without limitation damage to
the  Telephone  and  Television  Equipment)  arising out of its operation on the
Project.  Lessor shall be named as an additional  insured in connection with all
such  insurance.  A listing of minimum  insurance  requirements  is contained in
Exhibit "F" and incorporated herein by this reference.

9.6 House Phones. At no cost to Lessor, Lessee shall install and "hook-up" as an
accommodation  to Lessor  service for a maximum of eight (8) "house"  telephones
and for a maximum of two (2) common area television outlets.  Such telephone and
television  services  shall be located in common are - as within the Project and
in areas  employed by Lessor  and/or its  property  manager in  connection  with
management of the Project.  The specific locations in which such services are to
be installed  shall be as  designated  by Lessor.  In  connection  with any such
services,  Lessor  shall  not be  obligated  to pay the  basic  monthly  fees in
connection with either the telephone or television service so installed.  Lessor
shall be obligated to pay for any  extraordinary  television  service as used by
Lessor and shall  further be obligated  to pay the  standard  usage cost for the
telephone services employed by Lessor.

<PAGE>

9.7  Best  Efforts.  Lessee  shall  use  its  best  efforts  in  performing  the
obligations of Lessee under this Agreement,  as modified or amended from time to
time.  Without  limiting the generality of the  foregoing,  Lessee shall use its
best  efforts  to  promptly  discharge  the  service  obligations  specified  in
Paragraph 9.3 above of this Agreement.

9.8 Monthly Report.  On or before the tenth day of each calendar  month,  Lessee
shall submit a written report to Lessor  summarizing  such information as may be
reasonably  requested  by Lessor for the prior month.  The monthly  report to be
submitted by Lessee shall include,  but not by way of  limitation,  a summary of
any   problem   areas  then   existing   in   connection   with  the   Telephone
System/Television  System as well as a summary of the solutions achieved for the
problem areas  summarized in connection with the previous  months.  In the event
that Lessor requires  information  other than that then customarily  provided in
connection with such monthly report by Lessee,  Lessor shall give written notice
of a request for  additional  information to Lessee on or before the last day of
the calendar month for which the information is being requested by Lessor.

9.9  Bi-Annual  Reports.  In  February  of each  year,  Lessee  shall  deliver a
questionnaire  to fifty  percent  (50%) of the  residents  of the Project and in
August of each year,  Lessee  shall  deliver a  questionnaire  to the  remaining
fifty-  percent  (50%) of the  residents  of the  Project.  Lessee  shall obtain
Lessor's approval regarding the form of the questionnaire  prior to distribution
of the  questionnaire  to the  residents.  Based  upon  the  responses  to  such
questionnaires  received  by Lessee,  on or before the tenth day of April and of
October of each year,  Lessee shall submit a report to Lessor in connection with
the  Project  for the six (6)  month  period  prior to the  date of such  report
setting forth such  information  as may be  reasonably  requested by Lessor from
time to time  including  without  limitation  the results of the  questionnaires
returned by residents and a rate comparison between Lessee's rates and the rates
of AT&T and PacBell (or their  respective  successors) for two local  locations,
two long distance locations and two international  locations chosen at random by
Lessor. Lessor shall give written notice to Lessee of any information reasonably
required by Lessor in  connection  with the  above-described  BI-annual  reports
which notice  shall be given by Lessor to Lessee,  if at all, on or before March
15 or September 15 of each year.

                                                    Article 10
                                                  Entry by Lessor

10.1 Access.  Lessee  hereby  grants Lessor such licenses and access in and over
the Premises or any portion  thereof or the Utility Areas as shall be reasonably
required for the installation or maintenance of mains, conduits,  pipes or other
facilities to serve the Project or any part thereof,  provided that Lessor shall
pay for any alteration required of the Premises as the result of any such use of
the Premises.  Lessee  further  covenants and agrees that Lessor may go upon the
Premises to make any necessary  repairs to the Premises or perform any work upon
the  Premises  which  may be  necessary  to  comply  with  any  laws,  rules  or
regulations  of any public  authority,  or which  Lessor may deem  necessary  to
prevent waste or  deterioration  in connection with the Premises.  Except in the
case of emergency repairs, Lessor shall give Lessee twenty-four (24) hours prior
written notice of any intended entry by Lessor into the Premises for purposes of
repairs or performance of any work.

                                                    Article 11
                                               Voluntary Termination

11.1 Notice of Termination. Within sixty (60) days following the commencement of
each six (6) month period  during the term of this  Agreement  commencing  as to
both the Telephone  System and the  Television  System with the six month period
commencing as of the Effective Date, Lessee shall have the options to

<PAGE>

terminate  by giving  written  notice  within  such sixty (60) days to Lessor as
more'  particularly  provided below in this Paragraph 11.1.  Notice to terminate
must be given by Lessee, if at all, within the applicable sixty (60) day period.
The  computation of the above described time period shall be made separately for
the Telephone System and separately for the Television System.

         (a)  Subject  to the sixty day time  periods as  described  immediately
above in this  Paragraph,  in the event that Lessee fails to maintain an average
telephone  subscription level during the two (2) immediately  preceding calendar
months of an at least eighty percent (80%) penetration of the apartment units in
the Project,  then Lessee shall be entitled to give Lessor written notice of its
intent to terminate its  obligations  pursuant to this  Agreement to provide the
Telephone System for the Project. The effective date of the termination shall be
as provided  in the notice but no earlier  than one  hundred  eighty  (180) days
after the date of receipt by Lessor of such written notice.

         (b) Subject to the time periods as described  immediately above in this
Paragraph,  in the event that Lessee  fails to  maintain  an average  television
subscription  level during the two (2) immediately  preceding calendar months of
an at least  sixty  percent  (60%)  penetration  of the  apartment  units in the
Project,  then Lessee  shall be entitled  to give Lessor  written  notice of its
intent to terminate its  obligations  pursuant to this  Agreement to provide the
Television  System for the Project.  The effective date of the termination shall
be as provided in the notice but no earlier  than one hundred  eighty (180) days
after the date of receipt by Lessor of such written notice.

11.2 Removal of  Equipment.  In the event that Lessee  terminates  either of its
services  with respect to the  Telephone  System or its services with respect to
the  Television  System in accordance  with Paragraph  11.1  immediately  above,
Lessee shall have thirty (30) -days to remove its equipment  associated with the
terminated  service,  beginning  with  the  effective  date of the  termination;
provided,  however, that any equipment not so removed thirty (30) days after the
date of termination for the terminated  service shall be deemed to be abandoned.
Lessee  will  repair  any  damages  to the  Premises  caused by  removal  of its
equipment.

11.3 Lessee  Cooperation.  In the event that Lessee  terminates its  obligations
with respect to either the Television  System or Telephone  System in accordance
with Paragraph 11.1 immediately above,  Lessee shall upon the request of Lessor,
during  the  ninety  (90)  days  prior  to the  effective  date of  termination,
negotiate  in good faith with Lessor for the sale to Lessor or its  designees of
the Telephone Equipment and/or Television Equipment as the case may be, relating
to the terminated service,  which sale shall be made on a cash basis for a price
equal to the fair market value of the  equipment  being sold.  Should Lessor and
Lessee be unable  to agree  upon a fair  market  value for the  equipment,  then
Lessee  shall be  entitled  to remove  such  equipment  in  accordance  with the
provisions of Paragraph 11.2 immediately above. In the event of any such removal
of equipment,  Lessee shall  cooperate  with Lessor in connection  with Lessor's
efforts  to  obtain  a  third-party  provider  to  furnish  the  services  being
terminated  by Lessee.  Such  cooperation  shall  include  but not be limited to
making  space  available  prior  to the  effective  date of  termination  to the
third-party  provider within the Premises so that the  third-party  provider can
install  equipment as required to provide the services  effective as of the date
of termination.

11.4  Non-Terminated  Service.  Pursuant to  Paragraph  11.1  above,  Lessee may
terminate one without the other of the services  provided under this  Agreement.
For example, if Lessee notifies Lessor of its intent to terminate the Television
System but not the Telephone System,  then this Agreement shall remain in effect
only with respect to the Telephone  System being provided by Lessee.  Lessor and
Lessee also agree to execute an amendment to this  Agreement that will provide a
new  description  of the  Premises  as shown on  Exhibit  "B" and the  equipment
provided on Exhibits "C" and "C-1.

<PAGE>

11.5  Lease  Termination.  In the event  that  Lessee  elects to  terminate  its
obligations with respect to either the Telephone System or the Television System
as provided in subparagraph  11.1(a) and  subparagraph  11. 1(b),  respectively,
then in such event,  Lessor shall be entitled to terminate this Agreement in its
entirety by giving  written  notice of such  termination to Lessee within ninety
(90) days  following  receipt by Lessor of written  notice of  termination  from
Lessee.  Any such termination shall be effective thirty (30) days after the date
of receipt by Lessee of such written notice.

11.6 Additional Termination Right. Notwithstanding any provision to the contrary
contained in this  Agreement,  upon the sale or exchange of the Project,  Lessor
(or its  successor in interest as more  particularly  described  below) shall be
entitled to terminate this Agreement provided that the close of any such sale or
exchange   occurs  on  or  after  January  1,  2003  by  giving  written  notice
("Termination  Notice") to Lessee.  The effective  date of any such  termination
shall be the date set forth in the Termination Notice provided, however, that in
no event  shall  such date be less than sixty  (60) days  following  the date on
which the  Termination  Notice is given.  In the event of any such  termination,
provided  that Lessee is not  otherwise in default  pursuant to this  Agreement,
prior to the effective  date of such  termination  Lessor shall pay to Lessee in
cash a termination  fee in the amount of  $10,000.00.  Pursuant to provisions of
this Paragraph  11.6,  Lessor shall be entitled to terminate this Agreement with
respect to either the Telephone System or the Television  System or both. In the
event of the  termination  of this  Agreement  only with respect to one (but not
both) of the Telephone System or the Television System then this Agreement shall
continue with respect to that system not  terminated and following the effective
date of the  termination the rent payable by Lessee as provided in Paragraph 4.1
shall be based upon the  percentage of gross  receipts as set forth on Exhibit E
in  connection  with  the  system  not  then  terminated.  In the  event  of the
termination of either the Telephone System or the Television System as described
in this Paragraph  11.6, but not both, the above  described fee in the amount of
Ten Thousand Dollars  ($10,000) shall be reduced as applicable such that the fee
payable in connection  with the  termination  of the  Telephone  System shall be
Seven Thousand Five Hundred  Dollars  ($7,500) and the fee payable in connection
with the Television  System shall be Two Thousand Five Hundred Dollars ($2,500).
In the  event of any  termination  by  Lessor  of the  Telephone  System  or the
Television  System or both as provided in this Paragraph 11.6, the provisions of
Paragraphs  11.2 and 11.3 shall be  applicable  with respect to the equipment of
the  terminated  system and Lessee  shall have  thirty (30) days  following  the
effective date of termination to remove the applicable  equipment as provided in
Paragraph  11.2 subject  however to the provisions of Paragraph 11.3 pursuant to
which  provisions  Lessor and Lessee,  during the sixty (60) day period prior to
the effective date of termination, shall negotiate in good faith with respect to
the purchase and sale of the Telephone  Equipment  and/or  Television  Equipment
relating to the terminated service(s).  - The right to terminate as set forth in
this  Paragraph  11.6,  shall  inure to the  benefit  of Lessor  and  shall,  in
addition,  inure to the benefit of successors in interest to Lessor  pursuant to
this Agreement who hereafter purchase the Project from Lessor (or a successor in
interest to Lessor) provided that following such purchase this Agreement remains
in force and effect (and is therefore not terminated  pursuant to the provisions
of the Paragraph 11.6).

                                                    Article 12
                                                      Default

12.1  Defaults by Lessee.  The  occurrence  of any one or more of the  following
events  shall  constitute  a material  default and breach of this  Agreement  by
Lessee:

         (a) The vacating or abandonment of the Premises by Lessee; or

<PAGE>

         (b) The  failure  by  Lessee to make any  payment  of rent or any other
payment  required to be made by Lessee  hereunder,  as and when due,  where such
failure  shall  continue  for a period of three (3) days  after  written  notice
thereof  from Lessor to Lessee.  In the event that Lessor  serves  Lessee with a
Notice to Pay Rent or Quit pursuant to applicable  Unlawful  Detainer  statutes,
such Notice to Pay Rent or Quit shall not constitute the notice required by this
subparagraph; or

         (c) The failure by Lessee to observe or perform  any of the  covenants,
conditions  or  provisions  of this  Agreement  to be observed or  performed  by
Lessee,  other than as  described  in  paragraph  (b) above,  where such failure
continues  for a period of thirty (30) days after  written  notice  thereof from
Lessor to Lessee;  provided,  however, that if the nature of Lessee's default is
such that more than thirty (30) days are reasonably  required for its cure, then
Lessee shall not be deemed to be in default if Lessee commences such cure within
said thirty (30) day period and thereafter  diligently  prosecutes  such cure to
completion; or

         (d) The  occurrence  of any two (2) audits during any twelve (12) month
period  disclosing  that Lessee has understated its receipts by three percent (3
%) or more as described in Paragraph 4.2 above; or

         (e) Failure of Lessee to maintain  the  Television  System or Telephone
System in good condition and repair comparable with similar services, where such
failure continues for a period of fifteen (15) days after written notice thereof
from Lessor to Lessee; or

(f)  Failure of Lessee to provide  telephone  service or  television  service to
residents of the Project  comparable with similar  services,  or to make service
calls upon request in a prompt  fashion as provided  herein,  where Such failure
continues for a period of five (5) days after written notice thereof from Lessor
to Lessee  (provided  that  Lessee  shall not be  entitled  to such five (5) day
"cure"  period  upon the second  (2nd) to occur of any such  failure  within any
thirty (30) day period),  except for any failure  which results from the failure
of a tenant  to  timely  pay its  bills for  telephone  or  television  services
rendered,  destruction of equipment without fault of Lessee (provided,  however,
that such destroyed  equipment is to be promptly replaced and repaired by Lessee
at its cost),  or other  commercially  acceptable  cause  reasonably  beyond the
control of Lessee; or

         (g) Failure of Lessee to provide  telephone or  television  services at
rates equal to or less than those charged by the  applicable  public  utility or
local cable  franchise,  as the case may be, where such failure  continues for a
period of thirty (30) days after written  notice  thereof from Lessor to Lessee;
or

         (h) The filing, of a voluntary  petition of bankruptcy by Lessee or the
filing of an  involuntary  petition by Lessee's  creditors,  with such  petition
remaining undischarged for a period of sixty (60) days; or

         (i) A general assignment by Lessee for the benefit of creditors; or

         (j) An  appointment of a receiver to take  possession of  substantially
all of Lessee's  assets or of the  Premises,  with such  receivership  remaining
undissolved for a period of sixty (60) days; or

         (k)  The   attachment,   execution   or  other   judicial   seizure  of
substantially  all of Lessee's  assets or the  Premises,  with such  attachment,
execution or seizure remaining undismissed for period of sixty (60) days.

<PAGE>

12.2  Defaults by Lessor.  The  occurrence  of any one or more of the  following
events  shall  constitute  a material  default and breach of this  Agreement  by
Lessor:

         Failure to perform any of the material  obligations  required of Lessor
to be  performed,  provided  that such failure  continues for a period of thirty
(30) days after written notice thereof from Lessee to Lessor, which notice shall
specify the specific nature of the failure, and further provided,  however, that
if the nature of  Lessor's  default is such that more than  thirty  (30) days is
required to cure such  default,  then  Lessor  shall not be in default if Lessor
commences to cure such default within such thirty (30) day period and thereafter
diligently prosecutes the same to completion.

12.3 Remedies upon Default by Lessee. In the event of default by Lessee, the
following shall be applicable:

         (a) In addition to any and all other rights and  remedies  available to
Lessor at law or in equity, Lessor shall have the right to immediately terminate
this Agreement and all access rights and other rights of the Lessee hereunder by
giving  written  notice to Lessee of such  election by Lessor.  If Lessor  shall
elect to terminate this  Agreement,  then it may recover the amounts from Lessee
as are provided by applicable California law.

         (b) In the event of a default  by  Lessee,  Lessor  shall also have the
right, with or without terminating this Agreement,  to re-enter the Premises. If
Lessor does not elect to terminate this Agreement, Lessor may either recover all
rent as it becomes due or re-let the Premises,  together with all access rights,
upon such  provisions  as Lessor in its sole  judgment may deem  advisable,  and
Lessor shall have the right to make repairs to and  alterations to the Premises.
If Lessor  elects to re-let the  Premises,  then all rentals  received by Lessor
from such a re-letting shall be applied to the payment of all costs and expenses
incurred by Lessor in connection with such re-letting and to the payment of rent
due and paid hereunder.

         (c) Nothing  contained in this Paragraph 13.3 shall constitute a waiver
of Lessor's rights to recover damages by reason of Lessor's  efforts to mitigate
damages caused by Lessee's default.

12.4 Removal of Equipment.  In the event of a termination  of this  Agreement by
Lessor  resulting from the default of Lessee,  Lessee,  at its cost,  shall have
thirty (30) days from the date of  termination  in which to remove the Telephone
Equipment and the  Television  Equipment;  provided,  however,  that in no event
shall Lessee remove any wiring, cabling or accessories installed in the Project.
Notwithstanding  the  above,  at the  election  of Lessor  and  without  waiving
Lessor's  election to  terminate  this  Agreement,  Lessor  shall be entitled to
require  Lessee to give Lessor  fifteen  (15) days prior  written  notice of its
intent to remove the Television Equipment and/or the Telephone Equipment. During
such  fifteen  (15) day term,  Lessee  shall  cooperate  with  such  third-party
providers as may be selected by Lessor so as to allow such third-party providers
to  provide  to the  Project  substitute  telephone  service  and/or  substitute
television  service.  Such  cooperation  shall  include  but not be  limited  to
cooperation  in connection  with the placement by  third-party  providers of new
equipment within the Premises.  In addition, to the extent that Lessor elects to
do so, Lessee shall  negotiate in good faith following any notice of termination
given by Lessor,  in order to arrive at an agreement for purchase at fair market
value on a cash basis by Lessor of the Telephone Equipment and/or the Television
Equipment.  Failing any such  agreement  for purchase of the  Equipment,  Lessee
shall  continue to be entitled to remove such  equipment in accordance  with the
provisions hereof from the Premises.

<PAGE>

                                                    Article 13
                                               Damage or Destruction

13.1  Destruction  of Premises Due to Risk Covered by  Insurance.  If during the
term of this  Agreement the Premises are totally or partially  destroyed  from a
risk  covered  by  insurance  in effect at the  time,  and there are  sufficient
insurance  proceeds  to pay in full for the cost of  restoration,  Lessor  shall
restore the Premises to  substantially  the same condition as that which existed
immediately  prior to destruction,  provided that Lessor's  obligation  shall be
limited to the Premises and shall not include either the Television Equipment or
the Telephone  Equipment.  Lessee, at its cost, shall be required to restore the
Telephone  Equipment and the Television  Equipment.  Any such destruction of the
Premises shall not terminate this Agreement.  If the existing laws do not permit
the Premises to be restored to  substantially  the same  condition as that which
existed  immediately  before the  destruction,  or if in the opinion of Lessor's
architect the  restoration  cannot be completed  within one hundred eighty (180)
days from the date of damage or destruction, Lessor may terminate this Agreement
by giving written notice thereof to Lessee.

13.2 Destruction of Premises Due to Risk Not Covered by Insurance. If during the
term of this  Agreement the Premises are totally or partially  destroyed  from a
risk where the cost of  reconstruction  is not fully covered by insurance,  then
Lessor  shall have the  election  to  terminate  this  Agreement  or restore the
Premises in accordance  with the provisions of Paragraph  13.1. If Lessor elects
to restore the  Premises,  this  Agreement  shall  continue in effect and Lessee
shall have the obligation,  at its cost, to restore the Television Equipment and
the Telephone Equipment.

13.3 Rent. In the event of any partial destruction of the Premises,  the rent as
provided herein shall continue with no abatement, it being acknowledged that the
rent is based upon a percentage of Lessee's gross receipts only.

13.4 Restoration of Service.  Provided only that the Project in its entirety has
not been substantially destroyed,  Lessee at its cost shall quickly restore both
telephone and television  services to the Project.  Such restoration of services
shall include a temporary restoration of services during the period in which any
destruction of the Premises is being restored by Lessor.

                                                    Article 14
                                                   Miscellaneous

14.1 Indemnity. Lessee shall indemnify and hold Lessor harmless from and against
any loss,  claim,  damage or expense  (including  attorney's fees) in connection
with Lessee's operations at the Project;  provided,  however,  that Lessee shall
have no obligation to indemnify Lessor with respect to any loss,  claim,  damage
or expense  arising in whole or in part by reason of the  negligence  of Lessor,
its employees, agents or representatives.

14.2 Lessor Warranties. Except as specifically set forth herein, Lessor makes no
representations  or  warranties  of any kind  whatsoever to Lessee in connection
with the subject matter as described in this Agreement. Specifically, but not by
way of  limitation,  Lessor makes no  representations  or  warranties  as to the
suitability  of the Project for the  purposes as intended by Lessee  pursuant to
the provisions of this Agreement and makes no  representations  or warranties as
to the  profitability  or other success of the services to be provided by Lessee
hereunder.

14.3  Memorandum  of  Agreement.  Upon the  request of either  Lessee or
Lessor,  the  parties  agree to execute a memorandum of this Agreement in
recordable form and recorded in the Official Records of

                                                      - 13 -

<PAGE>

Contra Costa County,  California.  Subject to the provisions of paragraph  11.6,
this  Agreement  shall  survive any sale,  assignment  or other  transfer of the
Project and shall be construed in all respects as a lease and not a license. "In
the  event  of a  sale  of the  Project  by  Lessor,  Lessor's  obligations  and
liabilities pursuant to this Agreement shall be limited to those obligations and
all  liabilities  accrued  as of  the  completion  of  the  sale  and  following
completion of the sale the  purchasing  party shall become the successor  Lessor
pursuant  to this  Agreement  and  the  current  Lessor  shall  have no  further
obligations or liabilities with respect to this Agreement.  Lessor shall use its
best  efforts to obtain from any third party lender a  nondisturbance  agreement
with respect to this Agreement in a form reasonably  satisfactory to both Lessor
and Lessee.

14.4 Authority.  The person(s) executing this Agreement  expressly  represent(s)
and warrant(s) that he (they) has (have) full power and authority to do so.

14.5  Assignment.  Lessee may not assign this  Agreement  without the consent of
Lessor,  which shall not be  unreasonably  withheld.  Subject to this provision,
this  Agreement  shall be binding upon the parties  hereto and their  respective
heirs,  successors and assigns,  as the case may be.  Notwithstanding  the above
provisions, Lessee may assign this Agreement to an affiliated entity without the
consent of Lessor. For purposes hereof an "affiliated entity" shall be an entity
in which Lessee holds a majority in interest of the equity  ownership as well as
management control.

         Provided that Lessor has given its consent,  which consent shall not be
unreasonably withheld,  Lessee shall be entitled to separately assign its rights
with  respect to this  Agreement  relating  to the  Television  System and those
rights  relating to the  Telephone  System.  By way of example,  Lessee shall be
entitled  to assign  the  rights to the  Telephone  System to a third  party and

retain the rights to the Television  System. In the event of any such assignment
by Lessee, in connection with the consent to such assignment required of Lessor,
Lessee  shall  cause to be  prepared  appropriate  documentation  to reflect the
separate  assignment of the  Telephone  System  and/or  Television  System which
documentation  shall be in a form  reasonably  acceptable  to  Lessor  and shall
reflect  the  separate  rights  and  obligations  of the  respective  parties in
connection  with the separate  operation of the Telephone  System and Television
System.

         The  consent of Lessee  shall not be required  in  connection  with any
assignment  by Lessor of this  Agreement  or any one or more of the  rights  and
duties of Lessor  pursuant to this  Agreement.  For  example,  but not by way of
limitation,  Lessor may assign all of its rights and duties under this Agreement
with respect to a portion of the Project,  while retaining all of its rights and
duties under this Agreement with respect to the balance of the Project.

14.6 Other  Agreement.  The  parties  hereby  covenant  and  guarantee  that the
entering  into and  performance  of this  Agreement  will not create a breach or
default in any agreement to which they are a party. 14.7 Attorney's Fees. In the
event it becomes  necessary  for  Lessee or Lessor to enforce  the terms of this
Agreement, the prevailing party shall be entitled to reasonable attorney's fees,
costs and expenses.

14.8  Condemnation.  In the event of condemnation of the Project or a portion of
the  Project,  or a sale or a transfer  of the Project  under  threat of eminent
domain,  Lessee  shall be entitled to recovery  from any  proceeds  available by
reason of such  eminent  domain  or  condemnation  action  an amount  reasonably
calculated  to reimburse  Lessee for the loss of benefits of this  Agreement (or
portion of this  Agreement)  and for the loss of the investment in the Telephone
Equipment or Television Equipment resulting from such condemnation,  taking into
account the depreciated value of such equipment.

<PAGE>

14.9 Severability.  The provisions of this Agreement shall be severable, and the
invalidity or  unenforceability  of any provision shall not affect the remaining
provisions.

14.10 Exhibits.  The provisions of the Exhibits attached hereto and the attached
Addendum are hereby incorporated in this Agreement by this reference.

14.11 Notice. All notices,  requests or demands to a party hereunder shall be in
writing and shall be given or served  upon the other party by personal  service,
by certified return receipt requested or registered mail, postage prepaid, or by
Federal  Express or other  nationally  recognized  commercial  courier,  charges
prepaid, addressed as set forth below. Any such notice, demand, request or other
communication  shall be deemed to have been given upon the  earlier of  personal
delivery  thereof,  three (3) business days after having been mailed as provided
above, or one (1) business day after delivery through a commercial  courier,  as
the case may be.  Notices may be given by facsimile and shall be effective  upon
the  transmission of such facsimile notice provided that the facsimile notice is
transmitted on a business day and a copy of the facsimile  notice  together with
evidence  of its  successful  transmission  indicating  the  date  and  time  of
transmission is sent on the day of transmission by recognized  overnight carrier
for delivery on the  immediately  succeeding  business  day. Each party shall be
entitled to modify its address by notice given in accordance with this Section.

If to Lessor:                             Crow Canyon Developers, Ltd.
                                          c/o Kajima Development Corporation
                                          901 Corporate Center Drive, Suite 201
                                          Monterey Park, California 91754
                                          Attn: Osamu Ebinuma
                                          Fax No.: 213-262-9104

If to Lessee:                             GRI Telecommunications, Inc.
                                          C/o Gentium Realty Investments, Inc.
                                          One Daniel Burnham Court, Suite 205
                                          San Francisco, California 94109
                                          Attn: Bonnie Okamoto
                                          Fax No.: 415-776-4084

14.12 Descriptive  Headings.  The descriptive headings used and inserted in this
Agreement are for convenience only and shall not be deemed to affect the meaning
or construction of any provision of this Agreement.

14.13 Time. Time is of the essence of this Agreement and each and every
provision hereof.

14.14  California Law. This Agreement  shall be governed by and be construed
according to the laws of the State of California.

14.15  Waiver.  No covenant,  term or condition or breach  thereof  shall deemed
waived  except by  written  consent  of the  party  against  whom the  waiver is
claimed,  and any waiver of the breach of any covenant,  term or condition shall
not be  deemed  to be a  waiver  of  any  other  covenant,  term  or  condition.
Acceptance by Lessor of any  performance by Lessee after the time the same shall
have become due shall not constitute a waiver by Lessor of the breach or default
of any  covenant,  term or condition  unless  otherwise  expressly  agreed to by
Lessor in writing.

<PAGE>

14.16  Holding Over Period.  If Lessee or anyone  claiming  under Lessee  shall,
without the written consent of Lessor, hold over after the expiration or earlier
termination  of  the  term  of  this   Agreement,   such  tenancy  shall  be  on
month-to-month  tenancy,  which  tenancy may be  terminated  as provided by law.
During such tenancy, tenant agrees to pay to Lessor the rent otherwise agreed to
be paid hereunder plus an additional  amount equal to one hundred percent (100%)
thereof.

14.17 Force Majeure. Any prevention, delay or stoppage due to strikes, lockouts,
labor  disputes,  acts of  God,  inability  to  obtain  labor  or  materials  or
reasonable  substitutes  therefor,   governmental   restrictions,   governmental
regulations,  governmental controls, enemy or hostile governmental action, civil
commotion,  fire or other  casualty,  and other  causes  beyond  the  reasonable
control of the party obligated to perform,  shall excuse the performance by such
party for a period equal to any such prevention,  delay or stoppage,  except the
obligations  imposed  with regard to rent to be paid by Lessee  pursuant to this
Agreement.

14.18 No Partnership.  It is agreed nothing contained in this Agreement shall be
deemed or construed as creating a partnership  or joint venture  between  Lessor
and  Lessee,  or  between  Lessor  and any other  party,  or cause  Lessor to be
responsible  in any way for the debt or  obligations  for  Lessee  or any  other
party.

14.19 Financing.  Lessor may, from time to time,  obtain financing in connection
with the  Project or  refinance  the  Project by means of a mortgage  or loan or
loans from one or several mortgage companies; before said loans are approved and
closed,  such mortgage company or companies must approve this Agreement,  and in
order to  receive  such  approval,  this  Agreement  may have to be  amended  or
modified.  Provided that the term hereof is not altered and Lessee's obligations
to pay rent are not increased  thereby,  Lessee agrees that it shall consent and
immediately  execute any such amendment or  modification of this Agreement- that
may be requested by Lessor and said mortgage company or companies.  In the event
Lessee so fails to consent to or execute  any such  amendment  or  modification,
Lessor,  at its option,  may cancel and terminate  this Agreement on thirty (30)
days written notice to Lessee without further liability to Lessee hereunder.

14.20 Profit Sharing. Given the very substantial investment being made by Lessor
byway of wiring and cable costs and other costs in connection with the operation
of both the Telephone System and the Television System, which investment in part
allows Lessee  pursuant to provisions of this  Agreement to  participate  in the
operation and benefits of both such Systems, should Lessee employ in any fashion
whatsoever any of the facilities,  wiring, equipment or other items installed in
or employed in  connection  with either the Telephone  System or the  Television
System at the Project in connection with an apartment complex, office complex or
other project other than the Project (or the Related Project), then Lessor shall
be entitled to fifty  percent  (50%) of the profits  derived by Lessee from ally
such use.  Lessee  shall be  entitled  to employ a portion  of the  Premises  in
connection with the Related Project and in connection with such use Lessee shall
have no obligation to Lessor to share any profits derived in connection with the
Related  Project.  For purposes  hereof,  the term  "profits"  shall refer to as
provided  in this  Paragraph  14.20 the gross  receipts as received by Lessee in
connection  with any such use less the actual  out-of-pocket  costs  incurred by
Lessee in connection  with such use. In any event,  Lessee shall not be entitled
to employ any portion of the Telephone  System or the  Television  System in any
fashion  whatsoever  other than in  connection  with the Project and the Related
Project, except upon the prior written authorization of Lessor.

14.21 Termination of Prior Agreement.  As a condition of and simultaneously with
execution of this Agreement by Lessor and Lessee,  Lessor and Lessee have agreed
to terminate the Prior Agreement.

<PAGE>

14.22 Related Project Telephone and Television Equipment. In connection with any
termination of this Agreement or termination of any portion of this Agreement by
reason of the default of Lessee or  otherwise,  Lessee may -continue to operate,
service,  repair,  and maintain the Related  Project  Telephone  and  Television
Equipment within the Premises  pursuant to a separate and independent  agreement
with the owner of the Related Project.  It is acknowledged that the owner of the
Related  Project holds certain rights in connection with the use of the Premises
and  related  facilities  at the Project so as to allow for the  operation  of a
private telephone system and a private  television system in the connection with
the  Related  Project  regardless  of whether or not this  Agreement  remains in
effect with respect to the Project.

14.23 Entire  Agreement.  This Agreement along with any Exhibits and attachments
hereto  constitutes the entire  agreement  between Lessor and Lessee relative to
the Premises and the matters set forth herein,  and this  Agreement and Exhibits
and attachments hereto may be altered,  amended or revoked only by an instrument
in writing signed by both Lessor and Lessee.  It is understood that there are no
oral  agreements or  representations  between the parties hereto  affecting this
Agreement,  and this  Agreement  supersedes  and  cancels  any and all  previous
negotiations,   arrangements,   brochures,  agreements  or  representations  and
understandings,  if any,  between the parties hereto with respect to the subject
matter as set forth herein.

14.24   Counterparts.   This   Agreement  may  be  executed  in  any  number  of
counter-parts,  each of  which  shall  be  deemed  an  original,  but  all  such
counterparts  together shall  constitute but one and the same  instrument.  This
Agreement shall become  effective upon the execution of a counterpart  hereof by
each of the parties hereto.

Lessor:                                      Lessee:

CROW CANYON DEVELOPERS, LTD.,                GRI TELECOMMUNICATIONS, INC.,
a California limited partnership             a California corporation

By: Kajima Development Corp.,
    a Delaware corporation
                                             By:_______________________________

                                             Its:______________________________
    By:_______________________________

    Its:_______________________________

<PAGE>

                                   List of Exhibits

Exhibit A              Project Description
Exhibit B              Description of Equipment Room
Exhibit C              Television Equipment
Exhibit C-1            Telephone Equipment

Exhibit C-2            Related Project Telephone and Television Equipment
Exhibit D              Description of Utility Areas
Exhibit E              Rent Schedule
Exhibit F              Insurance Requirements

<PAGE>

                               Exhibit A

                 Project Description Promontory Point Apartments

                                LEGAL DESCRIPTION

REAL  PROPERTY  in the City of San  Ramon,  County  of  Contra  Costa,  State of
California, described as follows:

PARCEL ONE:

Parcel 2 as shown on Map MS 901-89, filed March 2, 1992, Book 158 of Parcel
Maps. Page 3. Contra Costa County Records.

PARCEL TWO:

A right of way (not to be  exclusive) as an  appurtenance  to Parcel One and any
subdivision or subdivisions  thereof for  Encroachment  purposes over, under and
upon the land described as follows:

Beginning  at the most  northeasterly  corner  of  Parcel 2 as shown  upon  that
certain Parcel Map 901-89 recorded in Book 158 of Parcel Maps, Page 3 Records of
said Contra Costa County;

Thence South 47 0 24' 17" West along the easterly line of said Parcel 1 a
distance of 10.00 feet: thence South 420 35' 43" East a distance of 5.00 feet;
thence North 470 24' 17" East a distance of 10.00 feet: thence North 420 35' 43"
West a distance of 5.00 feet to the point of beginning.

PARCEL THREE:

A right of-way (not to be  exclusive) as an  appurtenance  to Parcel One and any
subdivision or subdivisions  thereof, for Encroachment purposes over, under, and
upon the land described as follows:

Beginning  at the most  northeasterly  corner  of  Parcel 2 as shown  upon  that
certain Parcel Map 901-89  recorded in Book 158 of Parcel Maps Page 3 Records of
said Contra Costa County;

Thence  South  470 24' 17"  West  along  the  easterly  line of said  Parcel 2 a
distance of 270.00 feet to the true point of beginning;  thence continuing South
470 24' 17" West along said easterly line a distance of 90.00 feet; thence South
420 35* 43" East a distance of 5.00',  thence  North 470 24' 17" East a distance
of 90.00  feet:  thence  North 42* 35' 43" West a  distance  of 5.00 feet to the
point of true beginning.

A.P.Nos.:       208-280-023, 028. 029 and 030
<PAGE>

image

<PAGE>

                                    Exhibit C

             Television Equipment - Promontory Point Apartments

                                December 10, 1996

                              Inside Equipment Room

                             3 Custom Headend Racks

                                  10 Processors

                             25 Modulators
                 20 Integrated Satellite Receiver/Descramblers

                              2 Satellite Receivers

                               3 Channel Combiners

                                 2 Demodulators

                         Outside Equipment Room

                          1 12' Satellite Dish Antennas

                       1 10' Satellite Dish Antenna
                            4 Off Air Antennas

<PAGE>

                                   Exhibit C-1

                 Telephone Equipment 7 Promontory Point Apartments

                                December 10, 1996

                                  None on Site

The following are in side Equipment Room:

2 Cortelco SR1000 Cabinets

6 Universal Carriers

3 Power Supplies

59 Station Cards

2 T-1 Cards

2 CSU/DSU

1 Battery Back-up

1 WYSE 350 Monitor

1 Polling Unit (for billing)

1 Voice Mail System

1 Music-On-Hold System

                                                                               I

<PAGE>

              Related Project Telephone and Television Equpiment

                           Promotary Point Apartments

                              Television Equipment:

                           Outside Equipment Room but in the P. Point Premises

                                    1 Microwave Dish Transmitter

                           Located in the Promotary View Premises

                                    1 Microwave Dish Reciever

                           Telephone Equipment:

                   All inside Equipment Room located in promotory point

                           1  Cotelco  SR1000  3  Universal   Carriers  2  Power
                           Supplies  42  Station  Cards 1 T-1  Cards 1 CSU/DSU 1
                           Battery Backup

<PAGE>

image

<PAGE>

                                    Exhibit E

                 Rent Schedule Promontory Point Apartments

         The  rent  to be  paid  by  Lessee  pursuant  to  Paragraph  4.1 of the
Agreement shall be paid in accordance with the percentages set forth below based
on the level of service as set forth below.  If the level of service falls below
the minimum of sixty percent (60%),  rent shall  thereupon cease with respect to
the Telephone System and/or  Television System with respect to which the service
has fallen below the mininm until the month in which the minimum  service  level
is again  satisfied.  The  service  level is to be  determined  separately  with
respect to the Telephone  System and the  Television  System so that the minimum
level may not be met with respect to the  Telephone  System within a given month
and  still be met  with  respect  to the  Television  System.  For  purposes  of
determining when "service" is being provided to a given apartment,  "hook-up" of
the System to such apartment shall be considered as proof of the commencement of
service.  The rent as described  herein is based upon a percentage  of the gross
receipts with respect to the Telephone System and the Television System.  During
any months in which rent is not being paid with respect to the Telephone  System
and/or the  Television  System  because the minimum  service  level has not been
achieved,  Lessee shall continue to be obligated to provide the monthly  reports
to Lessor as described in Paragraph 4.1 of the Agreement.  The percentage of the
gross  receipts  paid in rent  shall  vary in  accordance  with  the  number  of
apartment  units being serviced as described  below. In determining the level of
service with respect to either the Telephone  Service or the Television  Service
in any given month, the highest level of service in such calendar month shall be
determinative.

         The percentage of monthly receipts to be paid by Lessee is described as
follows:

[From 11/1/96 through and including 12/31/2002:

<TABLE>
<CAPTION>

                 No. of apartment units     Percentage of Gross Monthly Receipts
                     being serviced
                                                           Telephone System                    Television System
<S>             <C>                                        <C>                                 <C>
                            0-239                                 0%                                  0%
                          240-279                                 5%                                  7%
                          280-319                                 6%                                  8%
                          320-359                                 7%                                  9%
                          360-400                                 8%                                  10%
</TABLE>

(From 1/1/2003 through and including 12/31/2005:

<TABLE>
<CAPTION>

               No. of apartment units      Percentage of Gross Monthly Receipts
                    being serviced
                                                           Telephone System                   Television System
<S>            <C>                                         <C>                                <C>

                           0-239                                  0%                                 0%
                         240-279                                  6%                                 8%
                         280-319                                  7%                                 9%
                         320-359                                  8%                                 10%
                         360-400                                  9%                                 11%
</TABLE>

<PAGE>

                                    Exhibit F

                    Insurance Requirements - Promontory Point Apartments

                    Lessee is required to comply at its cost with the  following
minimum insurance requirements:

         1. Lessee at its  expense  shall  maintain  the  hereinafter  described
insurance  coverage with insurance carriers licensed and approved to do business
in the State of California  (unless Lessor otherwise approves in writing) with a
general  policyholder's  rating of not less than A, and financial  rating of not
less than X, in the most current Best's Insurance  Report.  In no event will the
insurance be terminated or otherwise allow ed. to lapse prior to the termination
or expiration of the  Agreement.  Lessee may provide the insurance  described in
this Exhibit through a policy or policies  covering other liabilities of Lessee,
provided,.  however, that any such policy or policies shall: (i) allocate to the
Project the full  amount of  insurance  required  hereunder,  and (ii)  contain,
permit or  otherwise  unconditionally  authorize  the waiver of  subrogation  as
described in Paragraph 8 below.

         2. As evidence of specified insurance  coverage,  Lessor shall, in lieu
of actual  policies,  accept  certificates  issued by the  applicable  insurance
carrier  acceptable  to Lessor  showing such policies in force for the specified
period.  Such evidence shall be delivered to Lessor  promptly upon the execution
of the  Agreement  and prior to the  commencement  of any  activity of Lessee in
connection  with the Project.  Each policy and  certificate  shall be subject to
approval of Lessor and shall provide that such policies  shall not be subject to
material  alteration  or  cancellation  without  thirty (30) days prior  written
notice to Lessor,  which notice shall be  delivered  by certified  mail,  return
receipt requested. Should any policy expire or be cancelled prior to termination
or expiration of the Agreement,  and should Lessee fail *10 immediately  procure
other  insurance  as  specified,  Lessor  shall  have  the  right,  but  not the
obligation,  to procure such other  insurance  and charge Lessee  therefor,  in'
which event Lessee shall  immediately  upon written  demand from Lessor,  pay to
Lessor as  additional  rent  pursuant  to the  Agreement  the sum as advanced by
Lessor with respect to the insurance coverage.

         3. Nothing  contained in this  Amendment or in the  Agreement  shall be
construed to limit the extent of Lessee's  responsibility for payment of damages
resulting  from Us  operations  pursuant to the  Agreement,  nor shall  anything
contained  herein be deemed to place any  responsibility  on Lessor for insuring
that the insurance  required hereunder be sufficient for the operation of Lessee
pursuant to the Agreement.

         4.  Lessee  shall  maintain  full  workman's   compensation   insurance
including  employer's  liability  at a minimum  limit of Five  Hundred  Thousand
Dollars  ($500,000),  or current limit  carried,  whichever is greater,  for all
persons  whom it employs in carrying  out the work  pursuant  to the  Agreement,
including waiver of subrogation by the insurance  carrier with respect to Lessor
as specified in Paragraph 8 of this Exhibit.  Such insurance  shall be in strict
accordance  with the  requirements  of the most  current  and  applicable  state
worker's compensation insurance laws in effect from time to time.

         5. Lessee  shall  maintain  during the term of this  Agreement  general
public  liability  insurance,  with  coverage,  limits not less than One Million
Dollars ($1,000,000) for bodily injury or death to any one person, injury and/or
death to any number of persons in any one incident,  and for property  damage in
any 6ne, occurrence,  in the aggregate insuring against any and all liability of
the insured with respect to the  Premises or arising out of the  Agreement.  All
such insurance shall name Lessor and its designees as additional  insureds.  All
such insurance shall specifically insure for performance by Lessee of the

<PAGE>

indemnity provision set forth in Paragraph 9 below as to liability for injury to
or death of persons and damage to property Such inursance  shall have a lender's
protective liability endorsement attached thereto.

         6. Lessee  shall  maintain  insurance  covering  all of the items to be
installed  by Lessee in the  Premises or the  Project  (or the Related  Project)
pursuant  to the  Agreement  and  any  alterations,  additions  or  improvements
including  but not limited to any and all  equipment  to be  installed by Lessee
pursuant to the  Agreement  in amount not less than any full  replacement  value
thereof from time to time during the term of this Agreement providing protection
against any peril included with the classification of fire and extended coverage
together  with  insurance  against  sprinkler  damage,  vandalism  and malicious
mischief and water damage (from roof leakage, ground water or otherwise). Lessee
agrees to carry such insurance,  it being  expressly  understood and agreed that
none of the items to be insured by Lessee  hereunder shall be insured by Lessor.
Nor shall  Lessor be required to  reinstall,  reconstruct  or repair any of such
items.  Any policy  proceeds  shall be used for the repair or replacement of the
property  damaged or  destroyed.  All such  insurance  shall name Lessor and its
designees as additional insureds.

         7.  Lessee  shall  maintain  owned,  hired  and  non-owned   automobile
liability insurance covering all use of all automobiles,  trucks and other motor
vehicles  utilized  by Lessee in  connection  with the  Premises or Project of a
'Combined  single  limit for bodily  injury and  property  damage of $500,000 or
current  limit  carried  which ever is greater.  All such  insurance  shall name
Lessor and its designees as additional insured

         8.  Lessee  hereby  waives  any  rights it may have  against  Lessor in
connection with any of the damage or injury  occasioned to Lessee,  the Premises
or the Project arising from any risks actually covered by insurance in effect at
the time to the  extent  of the  available  proceeds.  Lessee  on  behalf of its
insurance  companies  providing   insurance   hereunder,   waive  any  right  of
subrogation  that it may  have  against  Lessor  .to  the  extent  of  available
proceeds.  Lessor as specified herein shall be included as an additional insured
under the coverage as required  pursuant to this Exhibit.  It is agreed that the
insurance to be provided by Lessee  hereunder is primary and any other insurance
maintained by Lessor is non-contributing  with the insurance to be maintained by
Lessee hereunder with respect to claims or liability arising out of or resulting
from the acts or omissions of a named  insured or others  performed on behalf of
the named insured.

         9. Lessee hereby agrees to indemnify and hold Lessor harmless,  against
any and all damage,  loss,  liability and expense including  without  limitation
actual  attorney's  fees and legal costs incurred  directly by reason of loss or
damage to the Premises,  Project, Property or any portion thereof or 'any claim,
suit or  judgment  brought  by or on behalf of any person  for  damage,  loss or
expenses due to, but not limited to, bodily injury or property damage  sustained
by person or persons which arise out of, or are  occasioned by or are in any way
attributable to the negligence or willful  misconduct of Lessee or its employees
or otherwise attributable to Lessee's negligence in selecting or supervising any
of its agents involved in performance  pursuant to the Agreement,  except to the
extent  that any such damage or loss,  costs or expenses  are caused by the sole
gross negligence or willful misconduct of Lessor.

<PAGE>

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