Document:

<PAGE>

                                                                   EXHIBIT 10.11

                                LEASE AGREEMENT

                                    between

                             ALBANY VENTURES, INC.
                                      and

                              COMMUNITY NETWORKS

       ------------------------------------------------------------------------
       For 100 State Street, Albany New York 12207, Leased Premises: Suite 140
                                                                           ----
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                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
NO.  PARAGRAPH TITLE.................................................... PAGE
---  ---------------                                                     ----
<S>                                                                      <C>
1    TERM...............................................................    3
2    RENTAL SCHEDULE....................................................    3
3    USE OF PREMISES....................................................    4
4    UTILITY CHARGES AND OPERATING SERVICES.............................    4
5    ELECTRICAL SYSTEM AND SERVICE......................................    4
6    HEATING, VENTILATING & AIR CONDITIONING SYSTEM & SERVICE...........    5
7    INSURANCE; INDEMNITY...............................................    6
8    PREPARATION OF THE LEASED PREMISES.................................    7
9    OTHER LEASEHOLD IMPROVEMENTS BY LESSEE.............................    8
10   OCCUPANCY/COMMENCEMENT DATE........................................    9
11   MAINTENANCE AND REPAIRS............................................   10
12   CLEANING/JANITORIAL SERVICES.......................................   11
13   DAMAGE TO OR DESTRUCTION OF LEASED PREMISES........................   11
14   ACTION OF PUBLIC AUTHORITIES.......................................   11
15   DEFAULT............................................................   12
16   ACCELERATION OF RENT UPON DEFAULT..................................   12
17   SUBORDINATION......................................................   13
18   SUBLETTING AND ASSIGNMENT..........................................   13
19   RECORDATION........................................................   14
20   SURRENDER AND WAIVERS..............................................   14
21   NOTICE.............................................................   15
22   BROKERAGE..........................................................   15
23   ENTIRE AGREEMENT...................................................   15
24   CHANGES, MODIFICATIONS OR AMENDMENTS...............................   15
25   SEVERABILITY.......................................................   16
26   COVENANTS TO BIND RESPECTIVE PARTIES...............................   16
27   BUILDING NAME......................................................   16
28   CERTIFICATE........................................................   16
29   LESSEE'S REPRESENTATIONS...........................................   16
30   LESSEE'S REMEDIES..................................................   16
31   SECURITY...........................................................   16
32   GOVERNING LAW......................................................   17
33   RELOCATION CLAUSE..................................................   17
33A  EXPANSION OF LEASED PREMISES.......................................   17
34   SIGNATURE PAGE.....................................................   18
35   ACKNOWLEDGMENTS....................................................   19
     EXHIBIT A - RENTAL SCHEDULE........................................   20
     EXHIBIT C - WORK LETTER............................................   21
     EXHIBIT D - RULES AND REGULATIONS..................................   22
     EXHIBIT E - GUARANTY OF LEASE......................................   24
</TABLE>

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                                LEASE AGREEMENT
                                ---------------

     THIS LEASE AGREEMENT, (the "Lease") made as of the day of September, 1998,
between Albany Ventures, Inc., a New York corporation, having its principal
office at 100 State Street, Albany, New York 12207 (Lessor) and Community
                                                                ---------
Networks, a                   corporation [authorized to do business in New York
--------------------------------------------------------------------------------
State], having its principal office at 100 State Street, Suite ________________
------
Albany, New York (Lessee).

                                  WITNESSETH
                                  ----------

     WHEREAS, Lessor is the owner of that certain tract of land with building
and improvements thereon erected commonly known as 100 State Street Albany, New
York (hereinafter referred to as the "Building"); and

     WHEREAS, Lessee desires to rent a portion of the Building for the conduct
of its business;

     NOW THEREFORE, in consideration of the payment by Lessee of the Fixed Rent
and Additional Rent (as hereinafter defined) reserved and the mutual performance
of the covenants and conditions hereinafter set forth, Lessor does hereby let
and demise unto Lessee and Lessee does hereby take and hire from Lessor, a
certain portion of the Building (hereinafter referred to as the "Leased
Premises"), located on the 1ST floor of the Building, comprising approximately
                           ---
1,976 rentable square feet of space, as more particularly described on Exhibit A
annexed hereto and made a part hereof.

1.   TERM:  This Lease is for a term of twenty five months (25) commencing
     ----
October 1, 1998, assuming the Leased Premises are ready for occupancy (as
defined in paragraph 10 hereof) or the day Lessee or anyone claiming under or
through Lessee first occupies the Leased Premises or any part thereof for
business, whichever occurs earlier (the earlier of such date being hereinafter
referred to as the "Commencement Date"), and expiring on October 31, 2000, or
shall end on such earlier date upon which the term of this Lease shall expire or
be canceled or terminated pursuant to the provisions of this Lease or pursuant
to law.

2.   RENTAL SCHEDULE:
     ----------------

     (A) The fixed rental (the "Fixed Rent") for the Leased Premises is
$31,616.00 per annum, for the term of this Lease payable in monthly increments
----------
of $2,634.66; all based on there being 1976 rentable square feet in the Leased
   ---------                           ----
Premises and subject to correction if there are fewer or greater.  Lessee shall
be given one (1) month free rent.

     (B) The rentable area set forth above has been determined from the plans of
the Leased Premises. Should there be any variance between said plans and the
actual rentable area occupied by Lessee, then promptly upon notice by Lessor to
Lessee of such variance, the parties shall enter into a recordable agreement to
reflect such change and the Fixed Rent shall be adjusted in accordance
therewith.

     (C) The Fixed Rent payments shall be paid in advance, without notice, on or
before the first day of each calendar month following the Commencement Date and
each month thereafter during the term of this Lease or any renewal thereof,
except that Lessee shall pay, upon the execution and delivery of this

                                      -3-
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Lease by Lessee, the sum of $2,634.66 to be applied against the last installment
of Fixed Rent becoming due under this Lease. Lessee covenants that the Fixed
Rent shall be paid promptly to Lessor, at the offices of Galesi Management
Corporation, 100 State Street, Albany, NY 12207, or to such other person and/or
at such other place as Lessor may designate, in lawful money of the United
States, without notice, demand, or abatement (except an abatement expressly
provided for in this Lease) and without any setoff or deduction whatsoever.
Lessee further covenants that any Additional Rent (as hereinafter defined) shall
be paid to Lessor in the same manner and subject to the same conditions,
covenants and requirements as provided for the payment of the Fixed Rent, on or
before the first day of the first calendar month following demand therefor
(unless otherwise specifically provided in this Lease).

     (D) In addition to Fixed Rent, Lessee shall pay Additional Rent which shall
mean all sums of money payable by Lessee under this Lease other than Fixed Rent.

     (E) The Lessee shall pay a "Late Charge" of two (2%) per month from the due
date of any installment of rental (Fixed Rent or Additional Rent) if said rental
payment is made after the tenth of the month. Nothing herein contained shall be
deemed to limit any right or remedy which the Lessor may have under this Lease,
at law or in equity.

3.   USE OF PREMISES:  Lessee will use and occupy the Leased Premises as
     ---------------
executive and general office activities for its lawful business purposes. Lessee
will comply with any and all laws, ordinances, rules, orders and regulations of
any governmental authority which are applicable to the conduct of Lessee's
business on the Leased Premises. The parties agree not to hinder the operational
activities of either party within such common areas as the Building entrance and
lobby, elevators, fire access lanes, driveways, turn-around areas, parking,
loading, unloading and shall mutually observe the restricted areas of either
party or other tenants of the Building.

4.   UTILITY CHARGES AND OPERATING SERVICE:  (A)  Lessor shall cause hot and
     -------------------------------------
cold water for ordinary lavatory, cleaning, drinking and toilet facility
purposes to be furnished at no expense to Lessee. Such facilities are provided
for common sharing and not for individual offices. (B) During the term of this
Lease or any renewal or extension thereof, Lessee shall pay for the following
utilities required for its operations: All telephone equipment, installation and
usage which shall be billed directly to the account of the Lessee by the
utility.

5.   ELECTRICAL SYSTEM & SERVICE:
     ---------------------------

     (A) The Lessor shall provide to the Lessee the installed or connected
electrical system and related equipment for the Leased Premises.  Any
relocation, addition or alteration of the system beyond the building standard
shall be at the Lessee's expense.

     (B) The Lessee agrees that the Lessor may periodically survey the Leased
Premises to verify that electrical energy demand and consumption do not exceed
the building standard. Usage in excess of the standard will result in necessary
corrections or alterations. The Lessor and Lessee agree that such corrective
action shall be at the expense of the Lessee and shall be billed and payable to
the Lessor with the next month's rent.

     (C) Lessor shall not be liable to Lessee at any time for any loss, damage,
or expense resulting from any change in the quantity or character of the
electrical service furnished to the Building by the

                                      -4-
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electric utility; by the cessation or interruption of the supply of current; nor
shall any such loss, damage or expense, or non-suitability, non-availability,
cessation or interruption in the supply of electric service or current in any
way affect the tenancy or in any way relieve Lessee of any obligation arising
under the terms of this Lease.

     (D)  In order that the personal safety and property of the occupants and
owner of the Building may not be imperiled by the over-taxing of the capacity of
the existing electrical distribution system, Lessee agrees not to make any
alterations or additions to the electrical equipment, appliances, fixtures or
other machinery utilizing electric power (other than lamps, typewriters, and
other small office machines) without obtaining the prior written consent of
Lessor in each instance. Lessee covenants and agrees that at all times its use
of electric current shall never exceed the capacity of existing feeders or any
wiring installation in the Leased Premises.

     (E)  Replacement lamps/starters for all lighting fixtures shall be Lessor's
responsibility.

6.   HEATING, VENTILATING AND AIR CONDITIONING SYSTEM & SERVICE:
     -----------------------------------------------------------

     (A)  Lessor shall provide heating, air conditioning, and year round
ventilating system into the interior areas, capable of maintaining temperature
conditions of 68 degrees F. dry bulb when the outside temperature is 0 degrees
F., and 75 degrees F. dry bulb when the outside temperature is 95 degrees F.,
assuming a population of not more than ten (10) people, and no reconfiguration
of the existing office space. Any change in location of diffusers or peripheral
system units, control valves, thermostats shall be for the account of the
Lessee.

     (B)  Lessor shall provide the above levels of HVAC throughout the year, in
accordance with the regular business hours of the Building designated as 7:00
a.m. to 6:00 p.m. Monday - Friday, excluding holidays ("Building Hours").

     (C)  Lessee agrees to keep and cause to be kept closed all windows in the
Leased Premises and to close the drapes or blinds when necessary to help
maintain comfortable temperatures and to conserve energy, and Lessee agrees at
all times to cooperate fully with the Lessor's energy conservation measures and
to abide by all regulations and requirements which Lessor may prescribe for the
proper functioning and protection of the HVAC system.

     (D)  Lessee agrees that in the event its occupancy level or electrical load
or both shall exceed the design capacity, the cost to Lessor of providing the
necessary additional HVAC capacity, including but not limited to any necessary
equipment, duct work or the like together with the cost of operation thereof,
shall be for the account of Lessee and shall be payable by Lessee to Lessor,
based upon the capacity of such additional equipment or the cost of otherwise
providing such additional capacity as Additional Rent. Lessor shall finish
Lessee in writing with an estimate of the cost of any such additional HVAC
equipment together with the additional monthly amount for operating any
additional capacity, and shall receive Lessee's written approval thereof prior
to providing such additional HVAC capacity.

     (E)  Lessor, through the term of this Lease, shall have free and
unrestricted access to any and all HVAC equipment in the Leased Premises upon
reasonable notice. Lessor reserves the fight to interrupt, curtail, stop or
suspend such HVAC equipment when necessary by reason of accident, or

                                      -5-
<PAGE>

repairs, alteration or improvements that are in the judgment of Lessor to be
desirable or necessary to be made. No diminution or abatement of rent or other
compensation shall or will be claimed by Lessee, nor shall the Lease or any of
the obligations of Lessee be affected or reduced by reason of interruption or
curtailment of such HVAC, when such interruption or curtailment or stoppage or
suspension shall be due to failure of electric power or accident, or to repairs,
alterations or improvements that are in the reasonable judgment of Lessor
desirable or necessary to be made, or to difficulty or inability in securing
supplies or labor, or to strikes, or to any other cause beyond the reasonable
control of Lessor, whether such other cause be similar or dissimilar to those
hereinbefore specifically mentioned.

     Lessor shall not be required to furnish, and Lessee shall not be entitled
to receive, any HVAC service during any period wherein Lessee shall be in
default beyond the applicable notice period in the payment of Fixed Rent or
Additional Rent as specified in the Lease.

7.   INSURANCE; INDEMNITY:
     --------------------

     (A)  Lessor shall procure and maintain all insurance which it deems
necessary for its protection against loss or damage to the Leased Premises or
any other property of Lessor situated thereon.

     (B)  Nothing contained in this Lease shall be construed to require either
party to repair, replace, reconstruct, or pay for any property of the other
party which may be damaged or destroyed by fire, flood, windstorm, earthquake,
strikes, riots, civil commotions, acts of public enemy, act of God, or other
casualty, and each party hereby waives all claims against the other for all loss
or damage arising out of perils normally insured against by standard fire and
extended coverage insurance.

     (C)  (1)  Except as hereinafter provided, neither party nor any agent or
employee of either party shall be liable for:

               (a)  Loss of or damage to any property of the other party, or of
any entity within the other party's control, or injury to any entity (if a
person) within the other party's control, from any cause whatsoever, unless
caused by or due to such party's gross negligence;

               (b)  Any damage referred to in (a) above caused by other
occupants or persons in the Building or by construction of any private, public,
or quasi-public work;

               (c)  Any latent defect in the Leased Premises or the Building and
Lessee shall not be entitled to any compensation therefor or for abatement of
Fixed Rent or Additional Rent or to any release of any of Lessee's obligations
under this Lease so long as such defect remains latent; nor shall the same
constitute an eviction.

     Lessee shall indemnify, defend and hold the Lessor harmless against and
from all liability referred to in (a) above arising out of any action brought by
any entity within the Lessee's control, which, for purposes of this paragraph,
shall include the Lessee's agents, employees, contractors and invitees.

          (2)  Lessee shall reimburse and compensate Lessor as Additional Rent
within five (5) days after rendition of a statement for all expenditures
(including attorney's fees) made by, or damages or fines sustained or incurred
due to non-performance of or non-compliance with or breach by or failure to
observe any term, covenant or condition of this Lease on Lessee's part to be
kept, observed, performed

                                      -6-
<PAGE>

or complied with.

     (D)  Lessee shall save Lessor harmless and indemnify it from and against
all injury, loss, claims or damage (including attorney's fees) to any person or
property while at the Building arising out of use or occupancy of the Leased
Premises by the Lessee or its employees, suppliers, contractors or agents and
from and against all injury, loss, claim, or damage to any person or property
anywhere occasioned by any act, neglect or default of the Lessee or its
employees, suppliers, contractors or agents. Lessee covenants and agrees that
during the term of this Lease it will provide and keep in force general public
liability insurance protecting and indemnifying persons and property in or about
the Leased Premises and in the Building throughout and the connecting corridors
thereof to the limit of not less than one million ($1,000,000.00) dollars in
respect of any one occurrence and three million ($3,000,000.00) dollars for
bodily injury or death to any number of persons in any one occurrence and to the
limit of not less than one hundred thousand ($100,000.00) dollars for property
damage. Lessee shall provide, or cause to be provided, Worker's Compensation
Insurance covering all persons employed in connection with the performance of
work upon, in or about the Leased Premises and throughout the Building and the
connecting corridors thereof (exclusive of work, if any, being done by Lessor as
provided by this Lease). All such insurance shall be effected in standard form
under valid, enforceable policies issued by insurers of recognized
responsibility and licensed to do business in the State of New York and shall,
except in the case of Worker's Compensation Insurance, name Lessor and Lessee as
the insureds as their respective interest may appear. A Certificate of such
insurance shall be delivered to Lessor prior to the Commencement Date and
thereafter from time to time (but no less than annually) during the term of this
Lease and at least ten (10) days prior to the expiration date of the previous
policy together with certificates evidencing the renewal of such policy, with
satisfactory evidence of payment of the premium on such policy. To the extent
obtainable, all such policies shall contain agreements by the insurers that (i)
such policies shall not be canceled except upon ten (10) days prior written
notice to each named insured and (ii) the coverage afforded thereby shall not be
affected by the performance of any work upon, in or about the Leased Premises.

     (E)  If by reason of any improper act of Lessee there shall be an increase
in the insurance premiums applicable to the Building, or the Lessor shall incur
any other expense by reason thereof, Lessee shall pay such increase or expense
to Lessor on the first day of the month immediately following the submission of
a bill or statement by Lessor to the Lessee for the same.

8.   PREPARATION OF THE LEASED PREMISES:
     ----------------------------------

     (A)  The Lessor shall provide and install in the Leased Premises, those
items, if any, as shall be specified in Exhibit C ("Work Letter") attached
hereto and made a part hereof.

     (B)  The Lessee may require and specify additional leasehold improvements
for the Leased Premises in addition to or in excess of the "building standard."
Any such improvement so designated shall be done by and for the specific account
of the Lessee unless otherwise provided for in the "Work Letter." The
authorization by the Lessee to do the work shall be specified by the attached
"Work Letter" or by additional supplement to the Work Letter to describe the
complete scope of improvements.

     (C)  The Lessor's agreement to do the work in the Leased Premises as set
forth in the "Work Letter" shall not require it to incur overtime costs and
expenses and shall be subject to unavoidable delays due to acts of God,
governmental restrictions, strikes, labor disturbances, shortages of materials
and

                                      -7-
<PAGE>

supplies and for any other causes or events beyond Lessor's reasonable control.
Lessor has made, and makes, no representation as to the date when the Leased
Premises will be ready for Lessee's occupancy. In the event that Lessor is
unable to substantially complete the work specified in Exhibit C so as to allow
Lessee to have commercially reasonable use of the Leased Premises on or before
October 1, 1998, Lessor shall at no cost to Lessee, make available space in
Suite 130 in its "as is" condition until the Leased Premises are substantially
completed.

9.   OTHER LEASEHOLD IMPROVEMENTS BY LESSEE:
     ---------------------------------------

     (A)  Lessee shall have the right, with the prior written consent of Lessor
(except that decorative improvements including painting, wall coverings,
carpeting and non-structural work shall require only prior notice to Lessor),
and at Lessee's sole expense, to make alterations or improvements in or to the
Leased Premises as it shall consider necessary or desirable for the conduct of
its business, provided that all such work shall be done in good and workmanlike
manner, that the structural integrity of the Building shall not be impaired, and
no liens shall attach to the Leased Premises or Building by reason thereof, and
provided also that all requirements of governmental authorities shall be
complied with.

     (B)  With respect to other improvements by the Lessor's requiring Lessees
written consent, Lessee shall prepare at its expense the outline drawings and
specifications indicating the alterations, modifications or any other
improvements to be made to the Leased Premises by the Lessee. All such plans
shall conform to the conditions outlined herein and as may be reasonably
established by Lessor.

     (C)  The Lessee shall submit the plans and specifications to the Lessor for
review and approval prior to the start of any work. The Lessor shall make
commercially reasonable good faith efforts to provide Lessor's approval,
conditioned acceptance or denial of the improvements within ten (10) days after
receipt.

     (D)  With respect to improvements by the Lessee requiring Lessor's written
consent, the Lessee, at the expense of the Lessee, shall file the appropriate
plan with the appropriate municipal building department and obtain approval and
all requisite, building, occupancy or other permits. No work shall commence
until the above approvals have been received.

     (E)  With respect to improvements by the Lessee requiring Lessor's written
consent, Lessee shall furnish a copy to Lessor of any construction contracts
with contractors who will perform the Lessee's improvements to the Leased
Premises. The Lessor shall have the right to inspect the improvements during
the construction thereof to insure:

          (1)  That the work will be done in accordance with the approved plans
and specifications and the consents, authorizations and licenses obtained;

          (2)  That the contractor or other persons performing the work and
furnishing materials will look solely to Lessee for payment and will hold Lessor
and the Leased Premises and the Building containing free from all liens and
claims of all persons furnishing labor or materials therefor, or both;

          (3)  That qualified and skilled tradesmen only shall be used in the
performance of Lessee's improvements;

                                      -8-
<PAGE>

          (4)  Any mechanic's lien filed against the Leased Premises or the
Building for work claimed to have been done or materials finished to Lessee
shall be discharged by Lessee, at its expense, within fifteen (15) days after
notice from Lessor to such effect. For the purposes hereof, the bonding of such
lien by a reputable casualty or insurance company shall be deemed the equivalent
of a discharge of such mechanic's lien. In the event Lessee fails to so
discharge such mechanics lien, Lessor may cause same to be bonded or discharged
and charge the expense thereof (including attorney's fees) to Lessee as
Additional Rent.

          (5)  Contractors doing Lessee's work shall employ only such labor as
will not result in jurisdictional disputes or strikes or otherwise cause labor
discord with respect to the Building.

     (F)  Lessee or its employees, suppliers, contractors or agents agree to
indemnify and save Lessor harmless against any and all bills for labor performed
and equipment, fixtures and materials installed in the Building and from and
against all losses, damages, costs, expenses, suits and claims whatsoever in
connection with the access to the Building and to the Lessee's leasehold
improvements in the Leased Premises. The cost of Lessee's leasehold improvements
shall be paid for in cash or its equivalent, so that the Leased Premises and the
Building containing the same shall at all times be free of liens for labor and
materials supplied or claimed to have been supplied.

     (G)  Upon the termination of this Lease, the improvements and any other
alterations, additions or improvements (other than trade fixtures) shall, at the
option of the Lessor (1) become the property of Lessor, or (2) be removed by the
Lessee, provided that any part of the Leased Premises affected by such removal
shall be restored to its original condition, reasonable wear and tear excepted.

10.  OCCUPANCY/COMMENCEMENT DATE:
     ---------------------------

     (A)  In the event this Lease pertains to the initial occupancy by any
Lessee of the Leased Premises, the Leased Premises shall be deemed ready for
occupancy on the earliest date on which both of the following conditions have
been met.

          (1)  The improvements described herein to be performed by Lessor have
been substantially completed, including the erection and painting or covering
(as required) of the walls, the installation of the doors and hardware and locks
therefor, the installation of lighting, electric outlets and switches such that
they are operational, and the issuance of such governmental approvals as may be
required for occupancy.

          (2)  Adequate means of access have been provided, and the use without
material interference of the facilities necessary to Lessee's occupancy of the
Leased Premises, including corridors, elevators, stairways, heating,
ventilating, air conditioning, sanitary, water and electrical lighting and power
facilities, are available to Lessee in accordance with Lessor's obligations
under the Lease.

     (B)  Lessor shall give written notice to Lessee designating the
Commencement Date for the term of this Lease in respect to the Leased Premises,
which shall not be fewer than two (2) business days' notice.

                                      -9-
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11.  MAINTENANCE AND REPAIRS:
     -----------------------

     (A)  Lessee shall keep the Leased Premises in good condition, reasonable
wear and tear excepted, and shall, in the use and occupancy of the Leased
Premises, conform to all laws, orders and regulations of the Federal, State and
Municipal governments, or any of their departments, and regulations of the New
York Board of Fire Underwriters, applicable to the Premises. Lessee shall not be
required to perform any maintenance, repairs or replacements necessitated by the
negligence of Lessor, its servants, agents, or employees, or structural defects
or deficiencies in the Building, or by fire, or other casualty.

     (B)  Except for such maintenance, repairs, and replacements as are
required by (A) above to be made by Lessee, Lessor shall perform any and all
structural alterations, maintenance, repairs and equipment replacements which
may be necessary to maintain the Building in good, safe and tenantable
condition.

     (C)  Lessee shall permit the Lessor to erect, use and maintain pipes and
conduits in and through the Leased Premises, provided the same are installed and
concealed behind walls and ceilings of the Leased Premises and do not result in
any noticeable loss of Lessee's space. All work necessary in connection with the
foregoing shall to the extent possible, be done outside of Lessee's regular
business hours. The Lessor or its agents shall have the right to enter the
Leased Premises to make such repairs or alterations as the Lessor reasonably
deems desirable for the proper operation of the Building and shall have the
right to enter the Leased Premises at any time on reasonable advance notice to
Lessee to examine them or when necessary for the protection of the Leased
Premises or the Building. The Lessor, provided it proceeds with due diligence,
shall be allowed to take all material into and upon the Leased Premises that may
be required for such repairs or alterations without the same constituting an
eviction of Lessee in whole or in part and without any abatement or diminution
of Fixed Rent or Additional Rent. In the making of such repairs or alterations,
the Lessor, to the extent practicable and consistent with efficiency and
economy, shall exercise reasonable diligence so as to minimize the disturbance
of or interference with the business of Lessee. Nothing herein contained,
however, shall be deemed or construed to impose upon the Lessor any obligation,
responsibility or liability whatsoever for the care, supervision or repair of
the Premises or any part thereof, other than as herein provided. The Lessor
shall also have the right at any time, without the same constituting an actual
or constructive eviction and without incurring any liability to Lessee therefor,
to change the arrangement or location of entrances or passageways, doors and
doorways and corridors, stairs, toilets, or other public parts of the Building,
provided that no changes shall be made without Lessee's consent where such
changes would adversely affect Lessee's ingress and egress to and from the
Leased Premises from the street floor or from the lobby of the Building or from
the hallway or lobby of the Building.

          Lessee shall at all times during the term of this Lease, and any
          extension thereof, permit inspection of the Leased Premises during
          business hours, by the Lessor and its agents or representatives, or by
          or on behalf of prospective lessees. Except in the case of emergency,
          any such inspection will be on at least twenty-four (24) hours'
          notice. Such inspection will be done in a manner so as not to
          unreasonably interfere with Lessee in the conduct of its business.

     (D)  Damages resulting from any act of the Lessee or its employees,
contractors, agents, licensees or invitees shall be repaired by the Lessee, or,
if repaired by the Lessor, all costs shall be

                                     -10-
<PAGE>

charged to the account of the Lessee.

     (E)  All repairs or replacements by Lessee or Lessor shall be of first
quality and done in good and workmanlike manner. If Lessee is charged with
making such repairs, restorations and replacements, the contract or chosen by
Lessee to do such repairs, restorations or replacements shall be subject to
Lessee's approval and further, if Lessee shall fail within fifteen (15) days'
written request from Lessor to commence the making of such repairs, restorations
and replacements and complete the work with reasonable diligence, they may be
made and completed by Lessor but at the expense of Lessee.

12.  CLEANING/JANITORIAL SERVICES:  Lessor shall provide cleaning and janitorial
     ----------------------------
services. Any special Lessee requirements for cleaning shall be specified,
priced separately and billed as Additional Rent to the Lessee's account, or they
may be billed directly to the Lessee by the contractor performing the work, at
Lessor's discretion.

13.  DAMAGE TO OR DESTRUCTION OF LEASED PREMISES:  If during the term of the
     -------------------------------------------
Lease, the Leased Premises are damaged by fire, flood, windstorm, strikes,
riots, civil commotions, acts of God, or other casualty so that the same are
rendered wholly unfit for occupancy, and if said Leased Premises cannot be
repaired within one hundred eighty (180) days from the time of such damage, then
this Lease, at the option of the Lessor, may be terminated as of the date of
such damage. In the event that the Lessor elects to terminate this Lease, the
Lessee shall pay the Fixed Rent and any Additional Rent apportioned to the time
of damage and shall immediately as practicable surrender the Leased Premises to
the Lessor who may enter upon and repossess the same and from and after the date
of surrender, Lessee shall be relieved from any further liability hereunder. If
the Lessor elects not to terminate the Lease or if any damage by any of the
above casualties, rendering the Leased Premises wholly unfit, can be repaired
within one hundred eighty (180) days thereafter, Lessor agrees to repair such
damage promptly within such period and this Lease shall not be affected in any
manner except that the Fixed Rent and Additional Rent shall be suspended and
shall not accrue from the date of such damage until such repairs have been
completed. If said Leased Premises shall be so slightly damaged by any of the
above casualties as not to be rendered wholly unfit for occupancy, Lessor shall
repair the Leased Premises promptly to Lessee's reasonable satisfaction and
during the period from the date of such damage until the repairs are completed
the Fixed Rent shall be apportioned so that the Lessee shall pay as Fixed Rent
an amount which bears the same ratio to the entire monthly Fixed Rent as the
portion of the Leased Premises which Lessee is able to occupy without
disturbance during such period bears to the entire Leased Premises. If the
damage by any of the above casualties is so slight that Lessee is not disturbed
in its possession and enjoyment of the Leased Premises, then Lessor shall repair
the same promptly and in that case the Fixed Rent and Additional Rent accrued or
accruing shall not abate.

     Notwithstanding anything herein contained to the contrary, if the cost of
repair or restoration exceeds thirty (30%) percent of the replacement value,
less foundation, of the Building, then Lessor shall have the option, exercisable
on written notice to Lessee within sixty (60) days of such damage, not to repair
and restore the Building.

     Lessee hereby expressly waives the provisions of Section 227 of the Real
Property Law or any other law or statute hereafter enacted of similar import and
agrees that the foregoing provisions of this paragraph shall govern and control
in lieu thereof.

14.  ACTION OF PUBLIC AUTHORITIES:  In the event that any exercise of the power
     ----------------------------
of eminent

                                     -11-
<PAGE>

domain by any governmental authority, Federal, State, County, or Municipal, or
by any other party vested by law with such power shall at any time materially
affect Lessee's use and enjoyment of the Leased Premises for the purposes set
forth in paragraph 3, Lessor and Lessee shall each have the right thereupon to
terminate this Lease. In the event of the termination of this Lease in
accordance with the provisions of this paragraph 14, the Fixed Rent shall be
apportioned and prorated accordingly. Lessee shall not be entitled to claim or
receive any part of any award in any condemnation proceeding or as a result of
such condemnation or taking, or to any damages against Lessor whether the same
be for the value of the unexpired term of this Lease or otherwise. Nothing
herein contained, however, shall be deemed to preclude Lessee's fixtures or
improvements or for Lessee's moving expenses provided the award for such claim
or claims is not in diminution of the award made to the Lessor (who shall not
claim such items as its own).

15.  DEFAULT:  If Lessee shall fail to pay any Fixed Rent or Additional Rent to
     -------
Lessor when the same is due and payable under the terms of this Lease and such
default shall continue for a period of ten (10) days after written notice
thereof has been given to Lessee by Lessor, or if the Lessee shall materially
fail to perform any of the covenants or conditions hereof or any other duty or
obligation imposed upon it by this Lease and such default shall continue for a
period of thirty (30) days after written notice thereof has been given to Lessee
by Lessor, or if the Lessee shall be adjudged bankrupt, either voluntarily or
involuntarily, or shall make a general assignment for the benefit of its
creditors, or a receiver of any property of any property of Lessee in or upon
the Leased Premises be appointed in any action, suit, or proceeding by or
against Lessee and such appointment shall not be vacated or annulled within
sixty (60) days, or if Lessee enters into any type of reorganization under the
United States Bankruptcy Code, as the same may from time to time be amended, or
if the interest of Lessee in the Leased Premises shall be sold under execution
or other legal process, then and in any such events Lessor, in its sole
discretion, may at any time thereafter terminate this Lease and the term thereof
upon giving to the Lessee five (5) days notice in writing of its intention to do
so and upon the giving of such notice, this Lease and the term thereof shall
terminate, and Lessor shall again have, repossess and enjoy the same as if this
Lease had not been made, and thereupon this Lease shall terminate without
prejudice, however, to the right of Lessor to recover from Lessee all Fixed Rent
and Additional Rent due and unpaid up to the time of such re-entry together with
all damages and expenses, including attorney's fees, incurred by Lessor due to
Lessee's default. In the event of any such default and re-entry, Lessor shall
have the right, but not the obligation to relet the Leased Premises for the
remainder of the then existing term whether such term be the initial term of
this Lease or any renewed or extended term, for the highest rent then
obtainable, and to recover from Lessee, as damages, the difference between the
rent reserved by this Lease and the amount obtained through such reletting less
the costs and expenses reasonably incurred by Lessor in such reletting
(including attorney's fees). In the event that the amount obtained through such
reletting, less the reasonable costs and expenses thereof, including attorney's
fees, shall exceed the Fixed Rent and Additional Rent herein reserved, Lessee
shall have no right to such excess. Any such notice shall specifically refer to
this paragraph 15 and shall specify the default claimed.

     Lessor's remedies as specified in this Lease are cumulative and are not
intended to preclude any other remedies or means of redress to which Lessor may
lawfully be entitled at any time, and Lessor may invoke any remedy allowed at
law or in equity as if specified remedies were not provided for in this Lease.

16.  ACCELERATION OF RENT UPON DEFAULT:  It is hereby mutually agreed, that
     ---------------------------------
notwithstanding anything to the contrary herein contained, the Leased Premises
are demised for rental

                                     -12-
<PAGE>

of $63,232.00 for the entire term of twenty four (24) months, payable at the
time of the making of this Lease, and that the provisions herein contained for
the payment of said Fixed Rent in installments are for the convenience of Lessee
only, and that, upon default in payment of the rent in installments, as herein
allowed, then the whole of the Fixed Rent and Additional Rent hereby reserved
for the whole of the said term and then remaining unpaid shall at once become
due and payable, without notice or demand.

17.  SUBORDINATION:
     -------------

     (A)  This Lease is subject and subordinate to any mortgages now or
hereafter affecting or covering the Leased Premises and all or any part of the
Building, and to any and all renewals, modifications, consolidations,
replacements and extensions of such leases and mortgages. This clause shall be
self-operative and no further instrument of subordination shall be required. In
confirmation of such subordination, however, Lessee agrees to execute any
instrument which may be deemed necessary or desirable by Lessor to effectuate
the subordination of this Lease to any such mortgage.

     (B)  Lessee shall attorn to and recognize a successor lessor, whether
through possession or foreclosure action or sale, as Lessee's landlord under
this Lease and shall promptly execute and deliver any instrument that such
successor Lessor may reasonably request to evidence such recognition and
attornment.

18.  SUBLETTING AND ASSIGNMENT:
     -------------------------

     (A)  Lessee shall not have the right to sublet or assign the Leased
Premises except on the following terms and conditions:

          (1)  Such subletting or assignment shall not relieve the Lessee from
its duty to perform fully all of the agreements, covenants and conditions set
forth in this Lease or any guarantor from the obligations of any guaranty
executed and delivered in connection with this Lease.

          (2)  The Lessee shall first obtain the Lessor's written consent to the
subletting or assignment in each instance.  Tenant, however, may assign interest
or sublet premises to any entity which controls, is controlled by, or is under
common control with tenant with notice to landlord, but without landlord's
consent.

          (3)  The Lessee shall provide the name of the proposed sublessee or
assignee, the term and conditions of the proposed subletting or assignment, the
nature and character of the business of the proposed sublessee or assignee, and
banking, financial and other credit information relating to the proposed
sublessee reasonably sufficient to enable Lessor to determine the financial
responsibility of said proposed sublessee or assignee.

          (4)  Upon the receipt of such request from Lessee, Lessor shall have
an option, to be exercised in writing within forty-five (45) days thereafter, to
terminate this Lease effective on a date (the "Termination Date") set forth in
Lessors notice of termination, which shall not be less than thirty (30) days nor
more than one hundred twenty (120) days following the service upon Lessee of
Lessor's notice of termination.

          (5)  In the event Lessor shall exercise such option to terminate this
Lease, this Lease shall

                                      -13-
<PAGE>

expire on the termination date as if that date has been originally fixed as the
expiration date of the term herein granted and Lessee shall surrender possession
of the entire Leased Premises on the termination date in accordance with the
provisions of this Lease.

     (B)  If Lessor shall not exercise its option within the period aforesaid,
then Lessor's consent to such request shall not be arbitrarily withheld but will
be given only on the following conditions, which conditions are hereby
acknowledged by Lessee to be reasonable and proper:

          (1)  That the subletting or assignment is for the entire Leased
Premises only;

          (2)  That the subletting or assignment shall be to a sublessee whose
occupancy will be in keeping with the dignity and character of the then use and
occupancy of the Building by other lessees and whose occupancy will not be more
objectionable or more hazardous than that of Lessee herein.  In no event shall
any subletting or assignment be permitted to a school of any kind or an
employment or placement agency; or governmental or quasi-governmental agency;

          (3)  That the subletting or assignment shall not be to any lessee,
sublessee or assignee of any leased space in the Building;

          (4)  That the subletting or assignment shall not be at a lower rental
rate than that being charged by Lessor at the time for similar space in the
Building;

          (5)  That the sublease or assignment will expressly prohibit
assignment of the Lease or further subletting by the sublessee without Lessor's
written consent.

          (6)  If this Lease shall be assigned, or if the Leased Premises or any
part thereof, be sublet or occupied by any person or persons other than Lessee,
Lessor may, after default by Lessee, collect Fixed Rent and/or Additional Rent
from the assignee, subtenant or occupant, and apply the net amount collected to
the Fixed Rent and/or Additional Rent herein reserved, but no such assignment,
subletting, occupancy or collection of Fixed Rent and Additional Rent shall be
deemed a waiver of the covenants contained in this Lease, nor shall it be deemed
acceptance of the assignee, subtenant or occupant as a tenant or a release of
Lessee from the full performance by Lessee of all of the terms, conditions and
covenants of this Lease.

19.  RECORDATION:  Lessee and Lessor agree that they will not record this Lease
     -----------
nor any memorandum thereof.

20.  SURRENDER AND WAIVERS:  When this Lease shall terminate in accordance with
     ---------------------
the terms hereof, Lessee shall quietly and peaceably deliver up possession to
Lessor without notice from Lessor other than as may be specifically required by
any provision of this Lease.  Lessee expressly waives the benefit of all laws
now or hereafter in force requiring notice from Lessor with respect to
termination. Lessee shall deliver up on of the Leased Premises in as good order,
repair, and condition as the same were in at the beginning of the term of this
Lease, except for reasonable wear and tear. The cost of repairing any damage to
the Leased Premises arising from the removal of Lessee's property, shall be paid
by Lessee. Lessee's obligation to observe or perform this provision shall
survive the expiration or other termination of the term of this Lease. All
personal property of Lessee not removed by it shall be deemed abandoned.

                                      -14-
<PAGE>

     The Lessee, for itself and on behalf of any person claiming through or
under it, including creditors of all kinds, does hereby waive and surrender all
rights and privileges which it might have under or by reason of any present or
future law to redeem the Leased Premises or to have a continuance of this Lease
for the term thereof after being dispossessed or ejected therefrom by process of
law or under the provisions of this Lease or after any termination of this Lease
as herein provided. Lessee also waives the provisions of any law relating to
notice or delay in levy of execution in case of an eviction or dispossession of
Lessee for non-payment of Fixed Rent and/or Additional Rent or of any other law
of like import now or hereafter in effect.

     Lessee shall not interpose any counterclaim or claim of set-off of any
nature or description whatsoever in any action or summary proceeding for the
non-payment of the Fixed Rent or Additional Rent.

     Except for an action, proceeding or counterclaim brought by either Lessor
or Lessee against the other for personal injury or property damage, Lessor and
Lessee hereby waive trial by jury in any action or proceeding or counterclaim
brought by either against the other on any matter whatsoever arising out of or
in any way connected with this Lease, the relationship of Lessor and Lessee, or
Lessee's use or occupancy of the Leased Premises, including any emergency or
other statutory remedy with respect thereto.

21.  NOTICE:  Any notice or demand required by the provisions of this Lease to
     ------
be given to Lessor shall be deemed to have been given adequately if sent by
Certified Mail, Return Receipt Requested, to Lessor at the following address:

               Albany Ventures, Inc.
               c/o Galesi Management Corporation
               100 State Street
               Albany, NY  12207

     Any notice or demand required by the provisions of this Lease to be given
to Lessee shall be deemed to have been given adequately if sent by Certified
Mail, Return Receipt Requested, to Lessee at the following address:

               Community Networks
               205 South Salina Street
               Syracuse, NY  13202

or to such other address as Lessee may hereafter designate by notice to Lessor.
Notice shall be deemed given when the same is received by the addressee.

22.  BROKERAGE:  Lessee hereby warrants and represents that Equis of New York
     ---------
has been used in connection with this Lease.  Lessor agrees that it will pay the
commission of said broker pursuant to a separate brokerage agreement.

23.  ENTIRE AGREEMENT:  The whole and entire agreement of the parties is set
     ----------------
forth in this Lease and the parties are not bound by any agreements,
understandings or conditions otherwise than as expressly

                                      -15-
<PAGE>

set forth and stipulated hereunder.

24.  CHANGES, MODIFICATIONS OR AMENDMENTS:  This Lease may not be changed,
     ------------------------------------
modified, discharged or terminated orally or in any other manner than by an
agreement signed by the parties hereto or their respective successors and
assigns.

25.  SEVERABILITY:  If any provision of this Lease or its application to any
     ------------
situation, shall be invalid or unenforceable to any extent, the remainder of
this Lease, or the application thereof to situations other than that as to which
it is invalid or unenforceable, shall not be affected thereby, and every
provision of this Lease shall be valid and enforceable to the fullest extent
permitted by law.

26.  COVENANTS TO BIND RESPECTIVE PARTIES:  The covenants, agreements,
     ------------------------------------
conditions and provisions of this Lease shall be binding upon and inure to the
benefit of Lessor and Lessee and their respective heirs, distributees,
executors, administrators, successors and permitted assigns, except that no
assignment or subletting in violation of the provisions of paragraph 18 shall
operate to vest any rights in any successor assignee or subtenant.

27.  BUILDING NAME:  The Lessor, for itself and its successors and assigns
     -------------
reserves the right to change the name of the Building, now generally known as
the 100 State Street Building, or the address of the Building or to designate
additional addresses therefor, on notice to Lessee.

28.  CERTIFICATE:  Lessee agreed, at any time and from time to time, upon not
     -----------
less than ten (10) days prior request by Lessor to execute, acknowledge and
deliver a statement in writing certifying that this Lease is unmodified and is
in full force and effect (or if there have been modifications, that the same is
in full force and effect as modified and stating the modifications), the
commencement date of this Lease, or any other existing status of the Lease, and
the dates to which the rent and other charges have been paid in advance, if any,
it being intended that any such statement delivered pursuant to this paragraph
may be relied upon by any prospective purchaser or mortgagee of the Building.

29.  LESSEE'S REPRESENTATIONS:  Lessee represents to Lessor that it has made a
     ------------------------
thorough examination and inspection of the Leased Premises and is familiar with
the condition of every part thereof. Lessee agrees that it enters into this
Lease without any representations or warranties by Lessor or any of its agents,
representatives, employees or servants or by any other person as to the
condition of the Leased Premises, and Lessee agrees to accept the Leased
Premises on the Commencement Date "as is" in its then condition, without any
alterations, improvements, repairs or decorations to be made by Lessor, except
as hereinabove otherwise provided.

30.  LESSEE'S REMEDIES:  Lessee shall look only to Lessor's estate and property
     -----------------
in the Building (or the proceeds thereof) for the satisfaction of Lessee's
remedies for the collection of a judgment (or other judicial process) requiring
the payment of money by Lessor in the event of any default by Lessor hereunder,
and no other property or assets of Lessor or its partners or principals,
disclosed or undisclosed, shall be subject to levy, execution, or other
enforcement procedure for the satisfaction of Lessee's remedies under or with
respect to this Lease, the relationship of Lessor and Lessee hereunder or
Lessee's use and occupancy of the Leased Premises.

31.  SECURITY:  Lessee has deposited with Lessor the sum of $______0______ as
     --------
security for the full and faithful performance and observance by Lessee of
Lessee's obligations under this Lease.  If

                                      -16-
<PAGE>

Lessee defaults in the full and prompt payment and performance of any of
Lessee's obligations under this Lease including, without limitation, the payment
of Fixed Rent and Additional Rent, Lessor may use, apply or retain the whole or
any part of the security so deposited to the extent required for the payment of
any Fixed Rent and Additional Rent or any other sum as to which Lessee is in
default or for any sum which Lessor, may expend or may be required to expend by
reason of Lessee's defaults. If Lessor shall so use, apply or retain the whole
or any part of the security, Lessee shall, upon demand, immediately deposit with
Lessor a sum equal to the amount so used, applied or retained, as security as
aforesaid. If Lessee shall fully and faithfully comply with all of Lessee's
obligations under this Lease, the security or any balance thereof shall be
returned to Lessee upon the termination of the Lease and after delivery to the
Lessor of entire possession of the Leased Premises. In the event of any sale of
Lessor's interest in the Building, Lessor shall have the fight to transfer the
security to the vendee and Lessor shall thereupon be released by Lessee from all
liability for the return of such security. The security deposit shall be
deposited by Lessor in an interest bearing account and interest earned by the
security is for the account of Lessee, unless Lessor retains the entire security
deposit.

32.   GOVERNING LAW:  The terms and conditions of this Lease shall be construed
      -------------
and interpreted under the laws of the State of New York.

33.   RELOCATION CLAUSE:  Lessor shall have the right upon forty-five (45) days
      -----------------
written notice to relocate Lessee to similar space, in size and type, with in
the Building. Notice to relocate shall be in writing and does not require
Lessee's written approval. Relocation costs shall be borne by the Lessor and all
terms and covenants of this Lease shall remain in full effect. In the event that
Lessor shall request that Lessee relocate during the last six (6) months of the
term of this Lease, then, provided Lessee is not then in default under this
Lease at the time that the relocation notice is given, Lessee shall have the
option, exercisable notice given within five (5) days of the date that Lessee
receives Lessor's relocation notice of terminating this Lease effective as of
the date specified in Lessor's notice of relocation the date that relocation is
to occur.

33.A. EXPANSION OF LEASED PREMISES.  If Lessor receives a bona fide inquiry to
      ----------------------------
show space at Suite 130 ("Expansion Premises"), it shall promptly notify Lessee
of such fact and Lessee shall have forty-eight (48) hours within which to inform
Lessor that Lessee desires to enter into negotiations to lease the Expansion
Premises. Lessor and Lessee agree to negotiate in good faith an acceptable
rental rate and other terms for the Expansion Space. If Lessee shall not inform
Lessor of its desire to negotiate within such forty-eight (48) hour period or if
Lessee cannot agree on terms within five (5) business days, Lessor may be free
to negotiate a lease with the bonafide third party.

                          - signature page to follow -

                                      -17-
<PAGE>

     IN WITNESS WHEREOF, Lessor and Lessee have caused these presents to be
executed by their duly authorized officers as of the day and year first above
written.

                                  ALBANY VENTURES, INC., LESSOR

                                  By:__________________________
                                  Name:

                                  Title:

                                  COMMUNITY NETWORKS, LESSEE

                                  By:__________________________
                                  Name:

                                  Title:

                                   PLEASE NOTARIZE ON PAGE 15.

                                      -18-
<PAGE>

NOTARY FOR LESSOR:
-----------------

STATE OF NEW YORK

COUNTY OF __________

          On the__________ day of _____________ in the year __________, before
me, the undersigned, a notary public in and for said state, personally appeared
___________________; the person known to me or proved to me on the basis of
satisfactory evidence to be the individual(s) whose name(s) is (are) subscribed
to the within instrument and acknowledged to me that he/she/they executed the
same in his/her/their capacities and that by his/her/their signature(s) on the
instrument, the individual(s) or the person upon behalf of which the
individual(s) acted, executed the instrument.

                             --------------------
                              Notary Public

NOTARY FOR LESSEE:
-----------------

STATE OF NEW YORK

COUNTY OF __________

          On the__________ day of ______________ in the year __________, before
me, the undersigned, a notary public in and for said state, personally appeared
___________________; the person known to me or proved to me on the basis of
satisfactory evidence to be the individual(s) whose name(s) is (are) subscribed
to the within instrument and acknowledged to me that he/she/they executed the
same in his/her/their capacities and that by his/her/their signature(s) on the
instrument, the individual(s) or the person upon behalf of which the
individual(s) acted, executed the instrument.

                             --------------------
                              Notary Public

                                      -19-
<PAGE>

                                   EXHIBIT A
                                   ---------

                                RENTAL SCHEDULE
                                ---------------

1976 rentable square feet-100 State Street, Suite 140
----                                              ---

Tenant:                                            Community Networks

Contact:                                           Scott Matukas

Lease Term:                                        Twenty four (24) months

Lease Commencement Date:                           October 1, 1998

Lease Rate: October 1, 1998 - October 31, 1998     Free Rent
            November 1, 1998 - October 31, 2000          $31,616.00/annum
$2,634.66/mo.

Special Provisions:

     After 18 months of paid rent, tenant can exercise the option to leave by
paying (1) one months rent penalty and the balance of the commission to broker.

                                      -20-
<PAGE>

                                   EXHIBIT C
                                   ---------

                                  WORK LETTER
                                  -----------

1.   Construct 20' 5" wall to make separate conference room.
2.   Resurface all existing walls and paint.
3.   Install 26 oz. carpet to the floor.  Landlord to select colors.
4.   Install electrical outlets.
5.   Install 6 panel painted masonite door.
6.   Remove dumb waiter and patch.

                                      -21-
<PAGE>

                                   EXHIBIT D
                                   ---------

                             RULES AND REGULATIONS
                             ---------------------

     1.   The sidewalks, entrances, passages, courts or halls shall not be
obstructed by Lessee or used for any purpose other than ingress and egress to
and from the demised premises. Nothing shall be thrown out of windows or doors
or down passages of building.

     2.   Movement of goods in or out of the premises and building shall only be
effected through the rear entrance.  No hand trucks, carts, etc., shall be used
in the building unless equipped with rubber tires and side guards.

     3.   The skylights, windows, and doors that reflect or admit light and air
into the halls, or other public places in the building shall not be covered or
obstructed by Lessee, nor shall anything be placed on the window sills.

     4.   The water and wash closets and other plumbing fixtures shall not be
used for any purposes other than those for which they were constructed, and no
rubbish, rags or other substances shall be thrown therein.  All damages
resulting from any misuse of the fixtures shall be borne by the Lessee who, or
whose employees, agents, visitors or licensees, shall have caused the same.

     5.   No Lessee shall make, paint, drill into, or in any way deface any part
of the demised premises or the building of which they form a part.  No boring,
cutting or stringing of wires shall be permitted, except with the prior written
consent of the Lessor, and as the Lessor may direct.

     6.   No Lessee shall make, or permit to be made, any unseemly or disturbing
noises or disturb or interfere with occupants of this or neighboring premises or
buildings.

     7.   No Lessee or any of Lessee's employees, agents or visitors or
licensees, shall bring or keep upon the demised premises any inflammable,
combustible or explosive fluid, chemical or substance, other than those used in
the normal course of business, or allow any unusual or objectionable odors to be
produced upon the demised premises, or permit animals or birds to be brought or
kept on the premises.

     8.   No machine may be operated on the premises without the written consent
of the Lessor, except for normal business machines.  Machinery shall be placed
in approved settings to absorb or prevent any noise or annoyance.

     9.   No Lessee shall place a load upon any floor of the building exceeding
the floor load per square foot area which such floor was designed to carry, and
all floor loads shall be evenly distributed. All removals or deliveries of any
safes, freight, furniture or bulky matter of any description must take place
during the hours which the Lessor or Lessor's agent may determine from time to
time. The Lessor reserves the right to prescribe the weight and position of all
safes, which must be placed so as to distribute the weight. The Lessor reserves
the fight to inspect all freight to be brought into the building and to exclude
from the building all freight which violates any of the Rules and Regulations.

     10.  Canvassing, soliciting and peddling in the building are prohibited and
each Lessee shall

                                      -22-
<PAGE>

cooperate to prevent the same.

     11.  No air conditioning unit or system, portable electric heater or
similar apparatus shall be installed or used by any Lessee without the written
consent of the Lessor.

     12.  Unless specifically designated within the building by the Lessor, the
building, Leased Premises and common areas have been designated by Lessor as
non-smoking areas.  No smoking will be permitted in the building, unless Lessor
has designated a specific smoking area.

     13.  Lessee shall not permit its employees, agents, visitors or licensees
to loiter within the building or on the adjoining sidewalks.

     14.  Lessor reserves the right to change, amend or otherwise revise the
Building Standard rules and regulations as Lessor deems reasonable and
necessary.

                                      -23-
<PAGE>

                                   EXHIBIT E
                                   ---------

                               GUARANTY OF LEASE
                               -----------------

     In order to induce ALBANY VENTURES, INC., a New York corporation, as
Lessor, to enter into the attached lease dated as of August __, 1998 (the
"Lease") _______________ as Lessee, the undersigned _____________________,
having an address of ____________________ ("Guarantor") hereby guarantees to
Lessor:

     (a) full payment when due of all sums payable by Lessee to Lessor under the
lease and

     (b) the full and prompt performance and observance of all of the terms,
covenants, conditions and agreements provided in the lease to be performed and
observed by Lessee, including the "Rules and Regulations" as therein provided,
without requiring any notice of nonpayment, nonperformance or nonobservance, or
notice or demand whereby to charge the Guarantor therefor, all of which the
Guarantor hereby expressly waives.

     This guaranty constitutes the unconditional, direct and primary obligation
of the Guarantor, and shall be enforceable regardless of whether any steps shall
have been taken to enforce any rights against Lessee and regardless of any other
condition or contingency. Guarantor consents that Lessor may do or omit from
doing any or all of the following and the obligations of the Guarantor hereunder
shall not be terminated or impaired by reason thereof:

     (i)    the assertion by Lessor against Lessee of any of the rights or
            remedies reserved by Lessor pursuant to the lease;

     (ii)   the extension of the time for payment or performance on the part of
            Lessee of any agreement or condition under the lease;

     (iii)  the supplementing, modification or amendment of the lease by the
            parties thereto;

     (iv)   any failure, omission or delay on the part of Lessor to enforce,
            assert or exercise any right or remedy conferred on Lessor under the
            lease; and

     (v)    the voluntary or involuntary liquidation, dissolution, marshaling of
            assets and liabilities, receivership, insolvency, bankruptcy,
            assignment for the benefit of creditors, or any similar proceeding
            affecting Guarantor or Lessee or any of their assets. Guarantor
            hereby waives notice of acceptance of this Guaranty and the right of
            trial by jury and the right to interpose a counterclaim in any
            litigation arising out of or in connection with this Guaranty.

    Guarantor represents and warrants that he/she is fully authorized to enter
into this Guaranty and that Guarantor has a financial interest in the Lessee.

    This Guaranty shall bind the legal representatives, successors and assigns
of the Guarantor and

                                      -24-
<PAGE>

shall inure to the benefit of the Lessor, its successors and assigns and shall
be construed for all purposes in accordance with the laws of the State of New
York.

Dated:  ____________________________
Year of ____________________________
_________________, _________________
City                    State

                                              By:    ________________________
                                              Name:  ________________________
                                              Title: ________________________

ATTEST:

_______________________

                                      -25-<PAGE>

                                                                   Exhibit 10.12

  Existing Lease Abstract

  Building:                        416-426 Main Street, Buffalo, NY

  Lease Date:                      October 22, 1998

  Landlord:                        Main Place Liberty Group

  Tenant:                          Coaxicom, Inc. (Community Networks)

  Premises:                        Part of 5th Floor, Suite 500

  Rentable Area:                   2,029 RSF

  Lease Term:                      1 year

  Lease Commencement:              October 1, 1998

  Lease Expiration:                September 30, 1999

  Rent Commencement:               October 1,1998

  Base Rent:                       Fixed Rental (Gross)-$26,884.25 per annum
                                   ($2,240.35 per month)

  Electricity:                     Included in Gross Rent

  Real Estate Taxes:               Included in Gross Rent

  Operating Expense:               Included in Gross Rent

  Security Deposit:                $2,240.35

  Use:                             General Office Use

  Sublet/Assignment:               Tenant must obtain prior written consent of
                                   the Landlord, which shall not be unreasonably
                                   withheld. However, Tenant may assign its
                                   interest or sublet the Premises to any entity
                                   which controls, is controlled by, or is under
                                   common control with Tenant with Notice to
                                   Landlord, but without Landlord's consent.

                                   In instances where Landlord's consent is
                                   needed, Landlord resewes the right to
                                   terminate this lease as an alternative to
                                   granting its consent to such assignment or
                                   subletting. In either case, Landlord will
                                   respond in writing within thirty (30) days of
                                   receipt of Tenant's said Notice. If Landlord
                                   elects to terminate this lease, such
                                   termination shall be thirty (30) days after
                                   Landlord gives Notice to Tenant thereof.
<PAGE>

Termination Option(s):             N/A

Expansion Option(s):               N/A

Right of First Refusal:            N/A

Renewal Option(s):                 N/A

Holdover:                          If Tenant shall remain in possession of the
                                   Premises after the Termination Date, tenancy
                                   shall be subject to all terms and conditions
                                   of this lease on a month to month basis. The
                                   monthly rental shall be double the amount of
                                   the monthly installments herein paid by
                                   Tenant to Landlord.
<PAGE>

[LOGO]                                                   2100 Liberty Building
                                                         Buffalo, New York 14202
                                                         (716) 855-1900
                                                         (716) 855-2487 Fax

                                        September 13, 1998

  Mr. Jeffrey R. Pacy
  Equis of New York, Inc.
  Park Avenue Tower
  8th Floor
  65 East 55th Street
  New York, NY 10022
  Re: Community Networks

Dear Jeff:

Enclosed is one (1) originally signed Commission Agreement and one (1) copy
of the executed Lease between Violet Realty, Inc. and Community Networks, for
your records.

If you have any questions, feel free to contact me at (716)855-1900.

Thank you.

                                         Very truly yours,
                                         MAIN PLACE LIBERTY GROUP

                                         /s/ MICHAEL McAVINN

                                         MICHAEL McAVINN, RPA, EDFP, AICP
                                         Director of Leasing

encl.
<PAGE>

                                LIBERTY BUIIDING
                               416-426 MAIN STREET
                                BUFFALO, NEW YORK

                           THIS LEASE, dated this 8th day of October, 1998,
             entered into by and between Violet Realty, Inc., hereinafter called
             "Landlord", and Community Networks, hereinafter called "Tenant",

                                  WITNESSETH:

                           Landlord does hereby lease to Tenant and Tenant
             leases and accepts the premises consisting of Room(s) Suite 500 on
             the 5th floor(s)and containing approximately 2,029 square feet of
             the Building located at 416-426 Main Street, Buffalo, New York,
             also known as the Liberty Building (herein called the "Building"),
             the premises covered by this Lease being herein called the "Leased
             Premises, as further defined crosshatched on attached Exhibit "A".

                           The terms of this Lease are as follows:

             Term              1. Subject to the terms and conditions set forth
                           herein, this Lease shall continue in force for a term
                           of one (1) year, beginning on the 1st day of October,
                           1998, or on such earlier date as Tenant shall occupy
                           the Leased Premises or any part thereof with the
                           consent of Landlord (such date for the commencement
                           of the term hereof being herein called the
                           "Commencement Date") and to end on the 30th day of
                           September, 1999, or on such earlier date upon which
                           said term may expire or be terminated pursuant to any
                           of the terms or conditions of this Lease.

             Rent             2. As rental for the Lease and use of the Leased
                           Premises, Tenant shall pay to the Landlord, at the
                           office of Landlord in Buffalo, New York, in lawful
                           money of the United States which shall be legal
                           tender in payment of all debts and dues, public and
                           private, at the time of such payment, an annual fixed
                           rental of Twenty-six Thousand, Eight Hundred Eighty-
                           four & 25/100 Dollars ($26,884.25), such sum (being
                           herein called "the annual base rent") is to be paid
                           in twelve equal monthly installments in the amount of
                           $2,240.35 each, such installments to be paid without
                           demand and without deduction, abatement or set-off
                           for any cause, the first of such monthly installments
                           to be due and payable on the 1st day of October,
                           1998, with a like installment to be due and payable
                           on the first day of each month thereafter during the
                           term of this Lease. In the event that the
                           Commencement Date shall be a date other than the
                           first day of a calendar month, then the Tenant shall
                           pay on the Commencement Date an amount equal to such
                           portion of an equal monthly installment as the number
                           of days from the Commencement Date bears to the total
                           number of days in said calendar month, and said
                           payment shall represent the pro-rata rent from the
                           Commencement Date to the end of such calendar month,
                           and a like adjustment shall be made at the end of the
                           term in this event as well. All other amounts
                           reguired to be paid by Tenant to Landlord under other
                           provisions of this Lease shall be deemed for all
                           purposes to be additional rent for this Lease and
                           upon Tenant's failure to timely pay same, Landlord
                           shall have the same rights and remedies as in the
                           event of failure to pay the annual base rent.

             Rentable         3. The total rentable area for the Building shall
             Area          be deemed to be 309,000 square feet for purpose of
                           this Lease. The rentable area for a full floor of the
                           Building shall be the area bounded by the four
                           exterior Building walls (measured to the interior

                                      -1-
<PAGE>

                           surface of the glass windows) excluding the area
                           used for Building stairs, vertical ducts, elevator
                           shafts, flues, stacks and pipe shafts and including
                           the area used for elevator lobbies, corridors,
                           special stairways, rest rooms, mechanical rooms,
                           telephone closets, and the structural columns of the
                           Building and all vertical penetrations for the
                           special use of Tenant. The rentable area for the
                           Leased Premises shall be the total rentable area
                           calculated for the floor or floors to be occupied by
                           Tenant or where only a portion of a floor is to be
                           occupied, the rentable area for the Leased Premises
                           shall be the area calculated within the boundaries
                           defined by any exterior Building walls bounding the
                           Leased Premises (measured to the interior surface of
                           the glass windows), the center line of any common
                           walls separating the Leased Premises from areas
                           leased or to be leased to other tenants and the
                           exterior of any walls separating the Leased Premises
                           from any public corridors or other public or common
                           areas on such floor plus a pro-rata portion of the
                           area on such floor used for elevator lobbies,
                           corridors, restrooms, mechanical rooms and telephone
                           closets. The rentable area for the Leased Premises
                           calculated pursuant to this provision shall be
                           deemed to be the square footage leased and accepted
                           as set forth above. Neither the rent payable
                           hereunder nor any other obligation of Tenant
                           hereunder shall be reduced, increased or otherwise
                           affected by a determination that the amount of the
                           rentable area for the Leased Premises as determined
                           by calculations made pursuant to the definitions set
                           forth above after construction of Tenant improvements
                           is more or 1ess than the amount set forth above.

             Uses of           4. Tenant shall use and occupy the Leased
             Premises      Premises for office purposes only and shall use such
             and           premises for no other purpose without the prior
             Compliance    written consent of Landlord. Tenant shall not use or
             with Law      permit the use of the Leased Premises or any part
             and           thereof in any way which violates any of the terms
             Insurance     and provisions of this Lease or any certificate of
             Coverage      occupancy issued with respect to the Leased Premises,
                           or which in the judgment of Landlord, would in any
                           way impair the character reputation or appearance of
                           the Building or cause discomfort, inconvenience or
                           annoyance to any of the other tenants or occupants of
                           the Building. Tenant shall at its expense comply
                           with all laws, ordinances, orders, rules and
                           regulations of Federal, State, County and Municipal
                           authorities and with any direction made pursuant to
                           law by any public officer or officers which shall
                           relate to the occupancy, use or manner of use of, or
                           any installation in, the Leased Premises or to any
                           abatement of nuisance, or which impose any order or
                           duty upon Landlord or Tenant, whether or not such
                           law, order, ordinance, regulation or direction shall
                           be presently in effect. Tenant shall not do or permit
                           to be done any act or thing in or upon the Leased
                           Premises which will invalidate, or be in conflict
                           with the certificate of occupancy for the Leased
                           Premises or the Building. Tenant will not occupy or
                           use, or permit any portion of the Leased Premises to
                           be occupied or used for any business or purpose
                           which is extra hazardous on account of fire, or
                           permit any thing to be done which will in any way
                           conflict with or increase the rate of fire insurance
                           on the Building and/or its contents. And in the event
                           that, by reason of Tenant's acts, there shall be any
                           increase in rate for the insurance on the Building or
                           its contents created by Tenant's acts or conduct of
                           business, then Tenant hereby agrees to pay such
                           increase.

                                                        -2-
<PAGE>

             Acceptance         5. Tenant is familiar with the Leased Premises,
             and           acknowledges that the same are received by Tenant in
             Indemnity     good state of repair, accepted by Tenant in the
                           condition in which they are now, and that Landlord
                           shall not be liable to Tenant or Tenant's agents,
                           employees, invitees or visitors for any damage to
                           persons or property due to condition, design or
                           defect in the Building or its mechanical systems or
                           elsewhere in the Leased Premises or the Building
                           which may now exist or hereafter occur, less due to
                           the diligence or willful or omissions of landlord,
                           its agents, contractors and employees. Tenant
                           accepts the Leased Premises as suitable for the
                           purposes for which the same are leased and assumes
                           all risks of damage to persons or property.

                               Landlord will not be responsible for any lost or
                           stolen personal property, equipment, money or jewelry
                           from Tenant's Leased Premises, area, or public rooms
                           regardleSs of whether such loss occurs when the area
                           is locked against entry or not.

                               Tenant agrees to indemnify and hold Landlord
                           harmless from all liability, claims, suits, demands,
                           damaqes, costs, fines, penalties and expenses
                           (including but not limited to, attorneys'fees and
                           other disbursements incurred in the defense of any
                           action or proceeding)to which Landlord may be subject
                           or suffer by reason by any injury to, or death of,
                           any person or persons or for damage to property
                           (including any loss of the use thereof), or
                           otherwise, arising or in any way related to Tenant's
                           use and occupancy of the Leased Premises during the
                           term of this Lease or during the period of time, if
                           any, prior to the Commencement Date in which Tenant
                           may have been given access to the Leased Premises for
                           the purpose of doing work or making installations
                           therein, or resulting from any condition of the
                           premises caused by any default by Tenant or resulting
                           from any act, omission or negligence of Tenant or any
                           of Tenant's agents, employees or invitees. Tenant
                           agrees to use and occupy the Leased Premises and all
                           other facilities of the Building at his own risk and
                           hereby releases Landlord, its agents and employees
                           from all claims for damage to property or injury to
                           persons from any cause to the full extent permitted
                           by law. Tenant further agrees that Landlord shall not
                           be responsible or liable to Tenant, his employees,
                           agents, or invitees for personal injuries or property
                           damage occasioned by the act or omission of any other
                           Tenant or such other Tenant's employees, agents or
                           invitees within the Building.

             Nuisance         6. Tenant will conduct his business, and control
                           his agents, employees, invitees and visitors in such
                           a menner as not to create nuisance or interfere with,
                           annoy, or disturb any %er Tenant &Landlord in its
                           management of the Building.

             Assignment       7. Tenant shall not assign this Lease, sublease,
             and           the Leased Premises or mortgage or pledge its
             Subletting    leasehold interest hereunder or grant any concession
                           or license within the Leased Premises without
                           obtaining the prior written consent of Landlord
                           thereto in each instance. See Page 3A. In the event
                           of any authorized assignment or sublease, Tenant
                           shall not thereby be released from any of its
                           obligations hereunder and Landlord shall be entitled
                           to enforce all of the terms of this Iaase directly
                           against either Tenant or his assignee or sublessee,
                           or both. Tenant shall continue to be bound by all of
                           the terms, covenants and conditions hereof
                           notwithstanding such assignment or sublease or the
                           acceptance of rent from any assignee or subtenant or
                           any other fact, unless Tenant is specifically
                           released from his obligations in writing by Landlord.
                           Any attempted assignment or subletting of this Lease
                           of the Premises without consent of Landlord shall be
                           void.

                                                        -3-
<PAGE>

             The following is added to Paragraph 7, Assignment and Subletting,
             Page 3:

                           which shall not be unreasonably withheld; and
                           Landlord and Tenant specifically agree that it
                           shall not be unreasonable for Landlord to withhold
                           its consent to an assignment or sublease to an
                           individual or entity with less net worth or less
                           operating experience than Tenant. Tenant, however,
                           may assign its interest or sublet the Premises to any
                           entity which controls, is controlled by, or is under
                           common control with Tenant with notice to Landlord,
                           but without Landlord consent.

                                     -3A-
<PAGE>

                           Landlord's consent to any such assignment or sublease
                           shall not be deemed a waiver of the requirement for
                           consent to any subsequent assignment or sublease.
                           Tenant acknowledges and agrees that a sublease of a
                           part of the Leased Premises is strictly prohibited
                           and Landlord under no circumstances will permit such
                           an assignment or sublease.

                               In the event of any proposed assignment of this
                           Lease or subletting of the Leased Premises, Landlord
                           reserves the right, in its discretion and at its sole
                           option to terminate this Lease as an alternative to
                           granting its consent to such assignment or
                           subletting. Prior to the proposed assignment or
                           subletting, Tenant shall forward to Landlord in
                           writing the instrument proposing to effect such
                           assignment or subletting indicating the proposed
                           sub-tenant and the terms of the assignment or
                           subletting. Within thirty (30)days after receipt of
                           the notice of the proposed assignment or subletting,
                           Landlord shall notify Tenant in writing whether it
                           consents, withholds its consent, or elects to
                           terminate this Lease. If Landlord elects to terminate
                           this Lease, such termination shall be effective
                           thirty (30)days after Landlord gives notice to Tenant
                           thereof.

             Alterations      8. Tenant shall not make any decorations,
             or Improve-   installations, additions or improvements in or to the
             ments, Liens  Leased premises without obtaining Landlord's prior
                           written consent thereto in each instance. All such
                           installations, additions or improvements shall be
                           done at Tenant's sole expense, by contractors or
                           mechanics approved in writing by Landlord under
                           contracts approved in writing by Landlord, and at
                           such time and in such manner as Landlord may from
                           time to time designate. The work to be performed
                           shall in all instances comply with laws, rules,
                           orders and regulations of governmental authorities
                           having jurisdiction thereof, shall comply in all
                           respects with plans and specifications approved by
                           Landlord and such work shall be of first quality.
                           Tenant shall never suffer or permit any bill for
                           labor or materials furnished for or used in the
                           repair, alteration, installation, restoration,
                           rebuilding or construction of any improvements upon
                           the Leased Premises under any provision of this Lease
                           or otherwise by Tenant ever to attach to said Leased
                           Premises as a lien or be secured by a lien upon said
                           premises; nor shall Tenant ever suffer to permit any
                           lien ever to attach to the rights or titles of the
                           Landlord to the fee title to said premises or the
                           right of Landlord to collect and receive the rentals
                           provided for herein or, in default of receiving such
                           rentals, to the right to Pursue and enforce the
                           remedies and options available to Landlord under such
                           circumstances, and in the event of the termination of
                           Tenant's rights hereunder, to receive back and be
                           entitled to have the full use, enjoyment and
                           occupancy of all of said Leased Premises free of
                           liens or encumbrances arising by virtue of any
                           contract or agreement made and entered into by Tenant
                           or any act or thing done or omitted to be done by
                           Tenant. All fixtures, equipment, improvements,
                           installations, alterations, additions attached to or
                           built into the Leased premises at the commencement of
                           or during the term of this Lease, whether or not
                           furnished or installed at the expense of Tenant,
                           shall be and remain part of the Leased Premises and
                           be deemed the property of Landlord and shall not be
                           removed by Tenant except as otherwise expressly
                           provided in this Lease. In the event Landlord, upon
                           at least thirty (30)days'notice to Tenant prior to
                           the expiration or termination of this Lease, shall
                           require Tenant to remove any of the aforesaid
                           fixtures, equipment, improvements, installations,
                           alterations, decorations, or additions

                                      -4-
<PAGE>

                           which are designated by Landlord, Tenant shall
                           remove same from the Leased Premises and restore
                           Leased Premises to their original condition, all at
                           Tenant's cost and expense and prior to the expiration
                           or termination of this Lease. All movable
                           property, furniture, furnishings and trade fixtures
                           installed or placed in the Leased Premises by Tenant,
                           other than those so affixed that they cannot be
                           removed without material damage thereto, shall remain
                           the property of Tenant and shall be removed by Tenant
                           prior to the expiration or termination of this Lease,
                           and the premises left in a neat and clean condition.
                           In the case of any damage to the Leased Premises by
                           reason of such removal, Tenant shall restore the
                           Leased Premises to good order and condition. If any
                           property of any kind which may be or is required to
                           be removed from the Building by Tenant, is not
                           removed by Tenant within the time specified above,
                           then Landlord (in addition to any other rights and
                           remedies which Landlord may have) may, at its
                           election, store or warehouse Tenant's property, at
                           Tenant's expense, or deem that the same has been
                           abandoned by Tenant, in which event Landlord may
                           thereafter deal with such abandoned property in such
                           manner as it deems best and without any further right
                           or claim thereto on the part of Tenant, and in either
                           event, upon removal of Tenant's property, Landlord
                           may restore such premises to their original
                           condition, and Tenant shall reimburse Landlord for
                           all costs and expenses incurred by Landlord in
                           removing such property and restoring the Leased
                           Premises.

             Fire or          9. If the Leased Premises or any part thereof
             Damage        shall be damaged by fire or other casualty, Tenant
             Clause,       shall give prompt notice thereof to Landlord and
             Release,      Landlord shall proceed with reasonable diligence to
             Subrogation   repair or cause such damage to be repaired. If the
                           Leased Premises or any part thereof shall be rendered
                           untenable by reason of such damage and such damage
                           shall not be caused by the negligence or other
                           wrongful conduct of Tenant, his agents, employees or
                           invitees, the annual base rent or a proportionate
                           part thereof hased on the area of the Leased Premises
                           so rendered untenable, shall be abated for the period
                           from the occurrence of such damage to the date when
                           the damage shall have been repaired, as aforesaid.
                           Otherwise Tenant's obligation to pay rent shall not
                           be affected by such fire or casualty. Landlord shall
                           not be liable for and Tenant expressly releases
                           Landlord from liability for inconvenience or
                           annoyance to Tenant or for injury to property or the
                           business of Tenant resulting in any way from such
                           damage or any action taken in connection with the
                           repair thereof. In case the Leased Premises or the
                           Building (whether or not the Leased Premises shall
                           have been damaged) shall be so damaged by such fire
                           or other casualty that substantial alterations or
                           reconstruction of the Building shall, in Landlord's
                           sole judgment, be required, then Landlord may, at its
                           option, terminate this Lease by so notifying Tenant
                           of such termination in writing within 90 days after
                           the date of such damage. In the event Landlord elects
                           to terminate this Lease, any prepaid and unearned
                           rent shall be refunded to Tenant. It is expressly
                           agreed that neither Landlord nor Tenant shall be
                           liable to the other, and each party hereto hereby
                           releases and waives all claims, rights of recovery,
                           and causes of action that either such party or any
                           party claiming by, through, or under such party or
                           subrogation or otherwise may now or hereafter have
                           against the other party or any of the other party's
                           directors, officers, employees, or agents for any
                           loss or damage that may occur to the Building, Leased
                           Premises Tenant's improvements, or any of the
                           contents of any of the foregoing by reason of fire,
                           Act of God, the elements, or any other cause,
                           including negligence

                                                              -5-
<PAGE>

                           of the parties hereto or their directors, officers,
                           employees, or agents, to the extent any loss or
                           damage incurred by the other shall be covered by
                           insurance; and both Landlord and Tenant shall cause
                           the carriers of any insurance covering or affecting
                           the Leased Premises or the Building to include
                           provisions in all such policies waiving any rights by
                           way of subrogation against either. However, if as a
                           result of any act or omission by Tenant, his agents,
                           employees or invitees, Landlord is unable to recover
                           the proceeds of any insurance policy maintained in
                           force by Landlord covering damage to the Building or
                           any part thereof, Tenant shall be liable to Landlord
                           for the cost of repair or restoration of the Building
                           to the condition in which it was immediately prior to
                           the occurrence of such damage thereto.

             Landlord's       10. To secure the payment of all rent payable
             Lien          hereunder and the performance of all of the other
                           obligations of Tenant hereunder, Tenant grants to
                           Landlord an express contract lien on and security
                           interest in all property and chattels now or
                           hereafter placed in the Leased premises. All
                           exemption laws are hereby waived by Tenant, the lien
                           and security interest hereby granted being in
                           addition to and cumulative of Landlord's statutory
                           lien. It is expressly agreed that the lien and
                           security interest herein granted may be foreclosed
                           with or without judicial proceedings, by public or
                           private sale, with or without notice and with or
                           without the property being present, to the highest
                           bidder for cash, and that Landlord shall have the
                           right to become purchaser thereof upon its being the
                           highest bidder at any such sale. The proceeds of any
                           such sale shall be applied first to the costs
                           incurred in holding such sale, next to the payment of
                           any rent or other amounts then owing by Tenant to
                           Landlord, and the balance, if any, to Tenant. Tenant
                           agrees to deliver possession of any property so
                           foreclosed upon to the purchaser thereof, and to pay
                           Landlord any deficiency remaining after such
                           foreclosure sale. The Tenant agrees to execute any
                           Uniform Commercial Code financing statements required
                           by Landlord to evidence the security interest hereby
                           granted.

             Default,         11. In the event Tenant shall fail to timely pay
             Abandonment   rent or any other amount required to be paid by the
             Attorney's    terms hereof, shall be in default of or fail to
             Fees          perform any other obligation or duty provided for
                           herein within five (5) days after receipt of written
                           demand from Landlord to do so, shall abandon or
                           vacate the Leased Premises or in the event of the
                           filing of a petition in bankruptcy or other
                           insolvency proceeding by or against Tenant, or the
                           filing of a petition or answer seeking relief under
                           any provision of the Bankruptcy Laws, or in the event
                           of assignment by Tenant for the benefit of creditors
                           or the filing of a petition or other proceeding for
                           the appointment of a trustee, receiver or liquidator
                           of Tenant, or any of Tenant's property, or the filing
                           of a proceeding by any governmental authority for
                           the dissolution or liquidation of Tenant, then in any
                           such event (it being expressly agreed that each of
                           the foregoing circumstances or events shall
                           constitute a default by Tenant) Landlord shall have
                           the right, at its option, in addition to any other
                           right or remedy which it may have at law or in
                           equity, to enter upon or take possession of the
                           Leased Premises and remove all persons and property
                           therefrom, with or without legal process, to chance
                           all locks to the Leased Premises and to take such
                           other action as may be necessary to dispossess Tenant
                           therefrom. Tenant agrees that such act or actions by
                           Landlord shall in no event be deemed unauthorized
                           entry or constitute a conversion of Tenant's
                           property, and all claims for damages by reason of any
                           such re-entry, repossession or

                                      -6-
<PAGE>

                           changing of any locks are hereby expressly waived
                           by Tenant as are any and all claims for damages by
                           reason of any legal proceedings instituted by
                           Landlord to recover possession of Leased Premises. It
                           is hereby agreed that in the event of default, as
                           hereinabove specified, Landlord shall be entitled to
                           terminate this Lease and all of Tenant's rights
                           hereunder. It is further agreed that all of the
                           foregoing rights and remedies granted to Landlord in
                           the event of Tenant's default may be exercised by
                           Landlord with or without terminating this Lease and
                           that the exercise of any one or more of the rights
                           hereinabove provided for shall in no event be deemed
                           to be an acceptance or surrender of the Leased
                           Premises by operation of law or otherwise, and shall
                           in no event effect a waiver or other release of any
                           other rights which Landlord shall have under this
                           Lease or otherwise. If Landlord elects to terminate
                           this Lease, Tenant shall nevertheless be liable to
                           Landlord for the full amount of all accrued and
                           unpaid rent as well as any and all other amounts then
                           owing to Landlord at the time of such termination
                           plus, as damages for Tenant's default hereunder, an
                           amount equal to the then present value of the amount
                           of rent which would have otherwise been payable by
                           Tenant to Landlord under the terms hereof for the
                           balance of the term of this Lease less the then
                           present value of the then fair rental value of the
                           Leased Premises for the residue of said term. In the
                           event Landlord elects to take possession of the
                           Leased Premises, as aforesaid, without terminating
                           this Lease, then Landlord may, at its option and
                           without any obligation or duty to do so, re-let the
                           whole or any portion of the Leased Premises for any
                           period to any Tenant and for any use and purpose
                           whatsoever. If Landlord does re-let all or part of
                           the Leased Premises Tenant shall be entitled to a
                           credit against its rental obligations hereunder in
                           the amount of all rents received by Landlord as a
                           result of such re-letting less the total of all costs
                           and expenses incurred, by Landlord in connection with
                           such re-letting, including brokerage commission, all
                           costs incurred in resuming possession of the Leased
                           Premises and moving and storing Tenant's property,
                           and the cost of repairing, altering, remodeling or
                           otherwise rendering the Leased Premises in condition
                           for re-letting to one or more new tenants; and Tenant
                           shall pay and satisfy any deficiencies. Nothing
                           herein shall be construed as in any way denying
                           Landlord the right, in case of abandonment, vacation
                           of premises, or other default by Tenant, to treat the
                           same as an entire breach and at Landlord's option
                           immediately sue for the entire breach of this Lease
                           and any and all damages occasioned Landlord thereby.

                               In case Tenant defaults in the performance of any
                           of the terms, covenants, agreements or conditions
                           contained in this Lease and Landlord places the
                           enforcement of this Lease or any part thereof, or the
                           collection of any rent due, or to become due
                           hereunder, or recovery of the possession of the
                           Leased Premises in the hands of an attorney or
                           attorneys or files suit upon the same, Tenant agrees
                           to pay and shall be liable for Landlord's reasonable
                           attorneys' fees and payment of the same shall be
                           secured in like manner as is herein provided as to
                           security for rent.

                              lla Chronic Defaults
                                  ----------------
                                  Tenant will be in "Chronic Default" under this
                           Lease if Tenant commits a default (either a Monetary
                           or Non-Monetary Default) during any 365-day period in
                           which any of the following combinations of default
                           has already occurred (even though said defaults may
                           have been timely cured):

                                                              -7-
<PAGE>

                              (1) Two Monetary Defaults: or

                              (2) Three Non-Monetary Defaults: or

                              (3) One Monetary Default and two Non-Monetary
                                  Defaults: or

                              llb Remedies
                                  --------

                                  If Tenant is in Chronic Default, Landlord may
                           immediately exercise any or all remedies available
                           under this Lease or at law or in eguity, all without
                           giving Tenant any notice or an opportunity to cure
                           the last default causing Tenant's Chronic Default
                           (notwithstanding any notice and cure provision or
                           other lease provision to the contrary).

                              1lc Definitions
                                  -----------

                                  For the purposes of this section,

                              (1) a Monetary Default occurs if Tenant fails to
                                  pay any sum of money when due (including, but
                                  not limited to, Base Rent and Additional
                                  Rent).

                              (2) a Non-Monetary Default occurs if Tenant fails
                                  to perform any of ifs obligations under this
                                  Lease other than the timely payment of money.

             Notice to        12. Tenant shall not take any action to enforce
             Landlord      Lease without giving Landlord at least thirty (30)
                           days' notice in writing of any alleged default by
                           Landlord in the performance of any of its obligations
                           hereunder and the opportunity to commence to cure
                           such alleged default within thirty (30)days following
                           the minimum thirty (30) days' notice provided for
                           herein.

             Sale, Lease      13. Landlord shall have the right to convey,
             or Mortgage   transfer, assign, mortgage or otherwise encumber, in
             by Landlord   whole or in part, its rights, titles and interests in
                           and to this Lease, the Building, the land upon which
                           it is situated or any ground or underlying lease
                           covering such Building and land, and Tenant shall, in
                           any such event, recognize and respect any such
                           conveyance, transfer and assignment and attorn to any
                           person or entity who shall acquire any such rights,
                           titles and interests, whether by voluntary transfer,
                           assignment or conveyance or through foreclosure of
                           any mortgage, lien or other security interest granted
                           by Landlord. In the event of the transfer by Landlord
                           of all its interests in the Building, following such
                           transfer, Landlord shall be released from all further
                           obligations or duties thereafter accruing hereunder.
                           In like manner each subsequent owner of Landlord's
                           interests in the Building shall be released from
                           liability hereunder upon the transfer of all of its
                           interests in the Building. Tenant agrees that this
                           Lease and all rights of Tenant hereunder are and
                           shall at all times here after be subject and
                           subordinate to any and all ground or underlying
                           leases, affecting the Building and the land upon
                           which it is situated and to any and all mortgages and
                           for any and all deeds of trust, now or hereafter
                           placed against or affecting the Building, the land
                           upon which it is situated, or any ground or
                           underlying lease covering such Building or land or
                           any part thereof, and any amendments, modifications,
                           consolidations, replacements, renewals or extensions
                           thereof. This clause shall be self-operative and no
                           further instrument of subordination shall be
                           required, but Tenant, from time to time, on request
                           of Landlord, shall execute an instrument in
                           recordable form confirming such subordination. Tenant
                           hereby appoints Landlord its Attorney in Fact to
                           execute any such

                                                       -8-
<PAGE>

                           instrument for, or on behalf of, Tenant. However,
                           Tenant agrees that the holder of any mortgage or lien
                           against either the Building, the land upon which it
                           is situated, or any ground or underlying lease shall
                           have the right at any time during the term of this
                           Lease to elect, by giving written notice to Tenant,
                           to make this Lease superior to such mortgage or
                           lien so that, upon the giving of such notice, this
                           Lease shall in all respects be prior and superior to
                           the mortgage or lien of the party giving such notice.

             Landlord's       14. Landlord will furnish such heat, water,
             Services      air conditioning, elevator service and cleaning
                           service as, in its judgment, is necessary for the
                           comfortable use and occupancy of the Leased Premises;
                           however, Landlord shall be obligated to furnish heat
                           or air conditioning to the Leased Premises only at
                           such times and on such days as are necessary, in
                           Landlord's judgment, to meet the needs of the tenants
                           of the Building; and Landlord shall not be required
                           to furnish heat and air conditioning after 6.00 P.M.
                           on week days, or on weekends or holidays observed by
                           Landlord. It is agreed that the interruption or
                           failure of any such services shall not constitute an
                           eviction or disturbance of Tenant's use and
                           possession of the Leased Premises or a breach by
                           Landlord of any of its obligations hereunder, that
                           Landlord shall not by reason thereof be liable for
                           damages, and Tenant shall not thereby be relieved of
                           any of its obligations hereunder. Landlord agrees
                           that it shall in all instances exercise reasonable
                           diligence to restore any service which shall be
                           interrupted. If any payment of rent due hereunder
                           shall remain unpaid for more than ten (10) days after
                           it shall become due, Landlord may without notice to
                           Tenant discontinue furnishing heat, air conditioning,
                           cleaning, elevator service and lighting services or
                           any of them, until all arrears of rent have been paid
                           in full, and Landlord shall not be liable for damages
                           to person or property or the business of Tenant for
                           any such discontinuance, nor shall such
                           discontinuance in any way be construed as eviction of
                           Tenant or cause an abatement of rent, or operate to
                           release Tenant from any of Tenant's obligations
                           hereunder.

             Condemnation     15. In the event that the whole of the Leased
                           Premises shall be condemned or taken in any manner
                           for any public or quasi-public use, this Lease shall
                           cease and terminate as of the date of vesting of
                           title thereto in the condemning authority. If a part
                           of the Building of which the Leased Premises form a
                           part is so taken or condemned and, if, in Landlord's
                           sole judgment, the continued operation of the
                           remaining part of the Building is not economical or
                           practicable, then Landlord, by written notice given
                           to Tenant within one hundred twenty (120) days of the
                           vesting of title in the taking or condemning
                           authority, may elect to terminate this Lease. In the
                           event that only a part of the Leased Premises shall
                           be so condemned or taken then, at the option of
                           Landlord, such option to be exercised within one
                           hundred twenty (120) days after such taking, this
                           Lease may be either terminated or continued in force
                           and effect. In the event of the termination of this
                           Lease pursuant to the foregoing provisions hereof,
                           rent shall be payable only up to the date of such
                           termination and Landlord will refund to Tenant any
                           prepaid unearned rent. However, in the event of a
                           partial taking of the Leased Premises and the
                           Landlord's election to continue this Lease, the
                           annual base rent hereunder shall be abated by an
                           amount in proportion to the area of the Leased
                           Premises so condemned or taken. In the event that
                           only a part of the Leased Premises shall be so
                           condemned or taken and is not terminated, Landlord
                           shall, with reasonable diligence and at its expense,
                           restore
                                                        -9-
<PAGE>

                           the remaining portion of the Leased Premises as
                           nearly as practicable to the same condition as it was
                           in prior to such condemnation or taking. Landlord
                           shall not be liable or responsible for any loss or
                           damage to any property or person, or inconvenience
                           which may arise through such repair or alteration of
                           any part of the Building, or failure to make any such
                           repairs, or from any cause whatever, unless caused
                           solely by Landlord's gross negligence. In the event
                           of condemnation or taking of all or any part of the
                           Leased Premises or the

                          [ILLEGIBLE]

             Care of the      16. Except as otherwise expressly provided herein,
             Leased        Landlord shall not be required to make any
             Premises,     improvements or repairs to the Leased Premises during
             Landlord's    the term of this Lease. Tenant shall take good care
             Access,       of the Leased Premises and all fixtures and
             Surrender     appurtenances therein and, at his cost and expense,
             of Leased     make all repairs thereto as are needed to preserve
             Premises      such Leased Premises in good order and condition. In
                           the event Tenant fails to make any repairs required
                           to be made by him under the terms hereof, Landlord
                           shall have the right, without obligation to do so, to
                           enter upon the Leased Premises to carry out any
                           repairs or other work required to be performed by
                           Tenant hereunder. If Landlord does undertake to carry
                           out any repairs or other work required to be
                           performed by Tenant, Landlord shall not be deemed to
                           have waived Tenant's default, and Tenant shall be
                           obligated to reimburse Landlord, upon demand, for all
                           costs and expenses incurred by Landlord in performing
                           such repairs and other work. During the progress of
                           any repairs or work by Landlord, Landlord may store
                           and keep on the Leased Premises all necessary
                           materials, tools, supplies and equipment therefore
                           and Landlord shall not be liable to Tenant for any
                           inconvenience, disturbance, or other loss or damage
                           to Tenant by reason of or on account of such actions
                           by Landlord. No entry by Landlord or its authorized
                           representatives upon the Leased Premises for the
                           purpose of making such repairs or performing such
                           other work shall constitute or be deemed a trespass
                           or eviction of Tenant, nor a termination of this
                           Lease. Landlord and its duly authorized agents and
                           employees shall have access to and the right to enter
                           upon the Leased Premises at any reasonable time to
                           examine the condition thereof, to make any repairs
                           required to be made by Landlord here hereunder, to
                           show the Leased Premises to prospective purchasers or
                           Tenants of the Building or for any other legitimate
                           purpose, including, without limitation, to perform
                           the services or to make the repairs and restoration
                           the Landlord elects to perform or furnish under this
                           Lease, to make repairs to adjoining space, to cure
                           any defaults of Tenant hereunder that Landlord elects
                           to cure, and to remove from the Leased Premises any
                           improvements thereto or property placed therein in
                           violation of this Lease, and Tenant shall not be
                           entitled to any abatement or reduction of rent by
                           reason thereof. Upon expiration or other termination
                           of this Lease, Tenant shall surrender possession of
                           the Leased Premises to Landlord in good order and
                           broom clean condition, ordinary wear and tear
                           excepted and such other damage

                                                        -lO-
<PAGE>

                           thereto as Tenant shall not be obligated to repair.
                           Prior to the surrender of the Leased Premises to
                           Landlord, Tenant at his sole cost and expense shall
                           remove all liens and other encumbrances which may
                           have resulted from the acts or omissions of Tenant.
                           If Tenant fails to do any of the foregoing, Landlord,
                           in addition to other remedies available to it at law
                           or in equity, may, without notice, enter upon,
                           reenter, possess and repossess itself thereof, by
                           force, summary proceedings, ejectment, or otherwise,
                           and may dispossess and remove Tenant and all persons
                           and property from the Leased Premises: and Tenant
                           waives any and all damages or claims for damages as a
                           result thereof. Such dispossession and removal of
                           Tenant shall not constitute a waiver by Landlord of
                           any claims by Landlord against Tenant.

             Non-Waive        17. Neither the acceptance of rent or other
             Holding       payment by Landlord with knowledge of any default by
             Over,         Tenant or the failure of Landlord to complain with
             Quiet         respect to any default by Tenant hereunder, shall
             Enjoyment     constitute a waiver of Landlord's rights hereunder.
                           Nor shall waiver by Landlord of any right resulting
                           from any default by Tenant waive any of Landlord's
                           rights with respect to a subsequent default by Tenant
                           with respect to the same obligation or any other
                           obligation here under. Tenant, upon payment of the
                           rental herein provided for and the performance of the
                           covenants and agreements set forth herein to be by
                           him performed, shall and may peacefully and quietly
                           have, hold and enjoy the Leased Premises for the term
                           of this Lease, subject to the terms and provisions
                           of this Lease. If the Tenant shall remain in
                           possession of the Leased Premises after the date of
                           termination of this Lease, Tenant shall be deemed to
                           be occupying the Leased Premises as a Tenant from
                           month to month, subject to all of the terms and
                           provisions of this Lease and at a monthly rental of
                           the amount of the installments herein provided
                           to be paid by Tenant to Landlord each month during
                           the term of this Lease, and, in addition, Tenant
                           shall be liable to Landlord for such other damages as
                           Landlord shall incur by reason of Tenant's holding
                           over.

             Rules and        18. The "Rules and Regulations" hereinafter set
             Regulations   forth form a part of this Lease with the same force
                           and effect as though written herein and each and
                           every provision thereof shall be observed and
                           performed by Tenant. In like manner, Tenant will
                           comply with such additional rules and regulations
                           which may from time to time be promulgated by
                           Landlord relating to the use and occupancy of the
                           Building, provided that such additional rules and
                           regulations may not infringe upon or deny Tenant's
                           rights under this Lease Agreement.

             Tax Insur-
             ance and
             Building
             Operating     [Intentionally Omitted]
             Expenses,
             Escalation

                                                        -ll-
<PAGE>

                                                        -12-
<PAGE>

             Electric         20. Landlord will furnish electricity to Tenant
             Service       through the presently installed electrical facilities
                           for Tenant's reasonable use of such lighting,
                           electrical appliances and equipment as are either now
                           or to be installed in the Leased Premises by the
                           Commencement Date. In order to prevent Tenant from
                           possibly overloading the electrical distribution
                           facilities of the Building, Tenant shall make no
                           alterations or additions to the electrical equipment
                           and/or appliances used in the Leased Premises without
                           obtaining the prior written consent of Landlord in
                           each such instance. Landlord shall not in anywise be
                           liable or responsible to Tenant for any loss, damage
                           or expense which Tenant may sustain or incur if
                           either the quantity or character of the electrical
                           service is changed or is no longer available or
                           suitable for Tenant's requirements. If Tenant deems
                           it necessary to install any riser or associated
                           equipment to Supply Tenant's electrical requirements,

                                                 -13-
<PAGE>

                           Landlord shall, upon written request of Tenant,
                           install such equipment, provided however, the cost
                           and expense of such equipment and installation
                           thereof shall be borne by Tenant, and provided
                           further that the installation of such additional
                           equipment, in Landlord's sole judgment, is necessary
                           and will not cause or create a dangerous or hazardous
                           condition, entail excessive or unreasonable
                           alterations, repairs or expenses or interfere with or
                           disturb other tenants or occupants of the Building.
                           Tenant shall furnish and install all lighting tubes,
                           lamps, bulbs and ballasts required in the Leased
                           Premises at Tenant's expense or shall pay Landlord's
                           reasonable charges therefore on demand.

                              Notwithstanding any other term or provision
                           hereof, Tenant shall pay to Landlord, monthly, as
                           billed, such charges as may be separately metered or
                           as Landlord's engineer may compute for any electric
                           service utilized by Tenant for computers, data
                           processing equipment or other electrical equipment
                           (except typewriters, dictating equipment, adding
                           machines and desk-top calculators) or extra lighting
                           or other electrical service not standard for the
                           Building.

                              In the event that Tenant desires air conditioning
                           or heating at any time or times other than normal
                           times, and Landlord consents to the furnishing of
                           such services at the time or times requested by
                           Tenant, Tenant shall be charged for such air
                           conditioning or heating furnished by Landlord during
                           such periods at Landlord's then standard hourly rate
                           applicable during the periods when such services are
                           furnished. Such rate may be changed by Landlord at
                           any time and from time to time during the Lease term.

             No Modifica-     21. Tenant agrees, at any time and from time to
             tion, No      time, upon not less than ten (10) days' prior notice
             Default       to notice to Landlord, to execute, acknowledge and
             Notice        deliver to Landlord a statement in writing addressed
                           to Landlord certifying that this Lease is unmodified
                           and in full force and effect (or, if there have been
                           modifications, that the Lease is in full force and
                           effect, as so modified), stating the date to which
                           the annual base rent and any additional rental have
                           been paid and stating whether or not there exists any
                           default by either party in the performance or
                           observance of any of the terms and provisions hereof
                           and, if so, specifying any such default. Tenant
                           acknowledges that any such statement delivered
                           pursuant hereto may be relied upon by Landlord and by
                           anY mortgagee or prospective mortgagee of any
                           mortgage affecting the Building, the land upon which
                           the Building is situated or Landlord's interest in
                           any ground or underlying lease or leases, and by any
                           lessor under any ground or underlying lease affecting
                           the Building or land, or both, and by any purchaser
                           or prospective purchaser of Landlord's interest in
                           the Building, the lands or any ground or underlying
                           lease or leases.

             Broker           22. Tenant warrants and represents he has not had
                           any dealings with any realtor, broker, or agent, in
                           connection with the negotiation of this Lease except
                           Eguis of New York, Inc., and Tenant agrees to pay and
                           to hold harmless from any cost, expense (including
                           reasonable cost of suit and attorneys' fees) or
                           liability for any compensation, commission or charges
                           claimed by any realtor, broker or agent other than
                           those named above with respect to this Lease and the
                           negotiations thereof. In the event

                                                      -14-
<PAGE>

                           of default or early Lease Termination it is expressly
                           agreed that any leasing commission monies actually
                           paid by Landlord to a broker or agent pursuant to
                           entering into this Lease shall be included when
                           determining the extent of wages incurred by Landlord
                           by reason of Tenant's default.

             Reservation      23. landlord reserves the right to change the name
             of Rights     or street address of the Building, to install and
             and Modifi-   maintain a sign or signs on the exterior of the
             cations       Building, to change or modify any of the public areas
                           of the Building, and to take any and all other
                           measures, including inspections, repairs,
                           alterations, additions and improvements to the Leased
                           Premises or to the Building as may be necessary or
                           desirable for the Safety, protection or preservation
                           of the leased or other premises or the Building or as
                           may otherwise be necessary or desirable, in
                           Landlord's judgment, for the proper operation of the
                           Building. Landlord also reserves the right of access
                           to and through the Leased Premises for any or all of
                           the above described purposes.

             Notices          24. Any notice required or permitted to be given
                           under the terms of this Lease shall be in writing and
                           shall be either delivered by hand or sent by United
                           States Registered or Certified Mail, postage prepaid,
                           if for Landlord, to the Building or if for Tenant, to
                           the Leased Premises. Such adresses may be changed
                           from time to time by either party by giving notice as
                           provided above. Notice shall be deemed given when
                           delivered (if delivered by Hand)or when postmarked
                           (if sent by mail).

             Taxes on         25. Tenant shall pay all ad valorem and similar
             Personalty    taxes or assessments levied upon or applicable to all
             and Tenant    equipments, fixtures, furnitures, and other property
             Improvements  placed by Tenant in the Leased Premises and all
                           license and other fees or charges imposed on the
                           business conducted by Tenant in the Leased Premises.
                           If the Tenant's improvements do not consist entirely
                           of Building Standard Improvements and Landlord shall
                           be required to pay higher ad valorem or other taxes
                           with respect to the Building that would have been
                           payable had the Tenant's improvements consisted
                           entirely of Building Standard Improvements, Tenant
                           shall pay to Landlord within ten days after demand,
                           the amount by which such taxes payable by Landlord
                           with respect to the Building for the tax period
                           exceed the amount of such taxes that otherwise would
                           have been payable by Landlord.

             Interest         26. All amounts of money payable by Tenant to
                           Landlord under this Lease, if not paid when due,
                           shall bear interest from the date due until paid at
                           the rate of 12% per annum.

             Heavy            27. Tenant shall not move any safe, heavy
             Equipment     machinery, heavy equipment, bulky freight, bulky
                           furniture, bulky matter, or fixtures into, or out of,
                           the Building except at such times and under such
                           reasonable conditions as Landlord shall determine or
                           provide from time to time in Rules and Regulations.
                           Landlord has the right to prescribe the weight, size,
                           and position of all safes and other heavy equipment
                           brought into the Building. Tenant shall indemnify
                           Landlord for, and hold Landlord harmless and free
                           from, damages sustained by person or property as well
                           as for all expenses and attorneys' fees, incurred in
                           connection with such moving and from all costs
                           incurred in repairing any to the Building or
                           appurtenances arising therefrom.

                                     -15-
<PAGE>

                              Tenant shall not place a load upon any floor of
                           the Leased Premises exceeding the floor load per
                           square foot area which such floor was designed to
                           carry and which is allowed by law, and, if considered
                           necessary by Landlord, safes or other heavy objects
                           shall stand on sufficiently thick wood strips so as
                           to evenly distribute the weight.

                              Business machines and mechanical equipment
                           belonging to Tenant, which cause vibration or noise
                           that may be transmitted to the Building structure or
                           to any leased space to such a degree as to be
                           objectionable to Landlord or to any tenants in the
                           Building, shall be placed and maintained by Tenant,
                           at his expense, in settings of cork, rubber or
                           spring type vibration eliminators sufficient to
                           eliminate such vibration or noise.

             Security         28. Tenant has deposited with Landlord the sum of
             Deposit       Two Thousand, Two Hundred Forty & 35/100 Dollars
                           ($2,240.35) as Security for the faithful performance
                           and observance by Tenants of the terms, provisions,
                           and conditions, of this Lease; it is agreed that in
                           the event Tenant defaults in respect of any of the
                           terms, provisions and conditions of this Lease,
                           including, but not limited to, the payment of rent
                           and additional rent, Landlord may use, apply or
                           retain the whole or any part of the security so
                           deposited to the extent required for the payment of
                           any rent and additional rent or any other sum as to
                           which Tenant is in default or for any sum which
                           Landlord may expend or may be required to expend by
                           reason of Tenant's default in respect of any of the
                           terms, covenants and conditions of this Lease,
                           including but not limited to, any damages or
                           deficiency in the re-letting of the Leased Premises,
                           whether such damages or deficiency accrued before of
                           after summary proceedings or other re-entry by
                           Landlord. In the event that Tenant shall fully and
                           faithfully comply with all of the terms, provisions,
                           covenants and conditions of this Lease, the security
                           shall be returned to Tenant after the date, fixed as
                           the end of the Lease and after delivery of entire
                           possession of the Leased Premises to Landlord. In the
                           event of a sale of land and the Building or the
                           leasing hereof, of which the Leased Premises form a
                           part, Landlord shall have the right to transfer the
                           security to the vendee of Landlord and Landlord shall
                           thereupon be released by Tenant from all liability
                           for the return of such security: and Tenant agrees to
                           look to the new Landlord solely for the return of
                           said security: and it is agreed that the provisions
                           hereof shall apply to every transfer or assignment
                           made of the the security to a new Landlord. Tenant
                           further covenants that he will not assign or encumber
                           or attempt to assign or encumber the moneys,
                           deposited herein as security and that neither
                           Landlord nor its successors or assigns shall be
                           bound by any such assignment, encumbrance, attempted
                           assignment or attempted encumbrance. Landlord shall
                           not be obligated to pay any interest to Tenant on the
                           amount so deposited.

             Landlord's       29. Any provisions of this Lease to the contrary
             Liability     notwithstanding Tenant hereby agrees that no personal
                           or corporate liability of any kind or character
                           whatsoever now attaches or at any time hereafter
                           under any condition shall attach to Landlord for
                           payment of amounts payable under this Lease or for
                           the performance of any obligation under this Lease.
                           The exclusive remedies of Tenant for the failure of
                           Landlord to perform any of its obligations under this
                           Lease shall be to proceed

                                     -16-
<PAGE>

                           against the interest of Landlord in and to the
                           Building.

             Light and        30. Neither diminution nor shutting off of light
             Air           or air or both nor any other effect on the Leased
                           Premises by any structure erected or condition now or
                           hereafter existing on lands adjacent to the Building
                           shall affect this Lease, abate rent, or otherwise
                           impose any liability on Landlord.

             Insurance        31. Landlord shall maintain during the term of
                           this Lease fire and extended coverage insurance
                           insuring the Building and Leased Premises excluding
                           Tenant's goods, furniture or property placed in the
                           Leased Premises, against damage or loss from fire or
                           other casualty normally insured against under the
                           terms of standard policies of fire and extended
                           coverage insurance. Tenant shall be responsible for
                           providing, at Tenant's own expense, all insurance
                           coverage necessary for the protection against loss or
                           damage from fire or other casualty for Tenant's
                           goods, furniture or other property placed in the
                           Leased Premises.

             Force            32. Landlord shall not be in default hereunder if
             Majeure       Landlord is unable to fulfill or is delayed in
                           fulfilling any of its obligations hereunder,
                           including, without limitation, any obligations to
                           supply any service hereunder, or any obligations to
                           make repairs or replacements hereunder, if Landlord
                           is prevented from fulfilling or is delayed in
                           fulfilling such obligations by reason of fire or
                           other casualty, strikes, or labor troubles,
                           governmental preemption in connection with a national
                           emergency, shortage of supplies or materials, or by
                           reason of any rule, order or regulation of any
                           governmental authority, or by reason of the condition
                           of supply and demand affected by war or other
                           emergency, or any other cause beyond its control.
                           Such inability or delay by Landlord in fulfilling any
                           of Landlord's obligations hereunder shall not affect,
                           impair or excuse the Tenant from the performance of
                           any of the terms, covenants, conditions, limitations,
                           provisions or agreements hereunder on his part to be
                           performed, nor result in any abatement of rents or
                           additional rents payable hereunder.

             No Waiver        33. No act or thing done by Landlord or Landlord's
                           agents, servants, employees, invitees, guests or
                           licensees, during the term hereof, shall be deemed an
                           acceptance of a surrender of the Leased Premises,
                           other than a written agreement signed by Landlord
                           accepting such surrender. The failure of Tenant or
                           Landlord to seek redress for violation of, or to
                           insist upon the strict performance of, any term,
                           covenant, condition, limitation, provision or
                           agreement of this Lease, or any of the Rules end
                           Regulations set forth or hereafter adopted by
                           Landlord, shall not prevent a subsequent act, which
                           would have originally constituted a violation, from
                           having all the force and effect of an original
                           violation. The receipt by Landlord or the payment by
                           Tenant of rent with knowledge of the breach of any
                           term, covenant, condition, limitation, provision, or
                           agreement of this Lease shall not be deemed a waiver
                           of such breach. The failure of Landlord to enforce
                           any of the Rules and Regulations set forth, or
                           hereafter adopted, against Tenant and/or against any
                           other Tenant in the Building of which the Leased
                           Premises form a part, shall not be deemed a waiver of
                           such Rules and Regulations. No provision of this
                           Lease shall be deemed to have been waived by Landlord
                           or Tenant, unless such waiver be in writing signed by

                                     -17-
<PAGE>

                           Landlord or Tenant, as the case may be. No payment
                           by Tenant or receipt by Landlord of a lesser amount
                           than the monthly rent herein stipulated shall be
                           deemed to be other than on account of the earliest
                           stipulated rent, nor shall any endorsement or
                           statement on any check or any letter accompanying any
                           check or payment of rent be deemed an accord and
                           satisfaction, and Landlord may accept such check or
                           payment without prejudice to Landlord's right to
                           recover the balance of such rental or pursue any
                           other remedy. No agreement hereafter made shall be
                           effective to change, modify, discharge, terminate or
                           effect an abandonment of this Lease in whole or in
                           part unless such agreement is in writing and signed
                           by the party against whom enforcement of the change,
                           modification, discharge, termination or abandonment
                           is sought.

             Legal Inter-     34. This Lease and the rights and obligations of
             pretation     the parties hereto shall be interpreted, construed
                           and enforced in accordance with the laws of the State
                           of New York. All obligations, if any, of either party
                           requiring any performance after the expiration of the
                           term shall survive the expiration of the term and
                           shall be fully enforceable in accordance with those
                           provisions pertaining thereto. If the rights of the
                           Tenant hereunder are owned by two or more parties or
                           two or more parties are designated herein as Tenant,
                           then all such parties shall be jointly and severally
                           liable for the obligations of Tenant hereunder.
                           Section titles appearing in the margins are for
                           convenient reference only and shall not be used to
                           interpret or limit the meaning of any provision of
                           this Lease.

                              Tenant hereby waives all rights under Section 227
                           of the Real Property law of the State of New York and
                           agrees that the provisions of this Article shall
                           govern with regard to the subject matter dealt with
                           in said Section 227.

             Captions         35. The captions set forth in this Lease are
                           inserted only as a matter of convenience and for
                           reference and in no way define, limit or describe the
                           scope of this Lease nor the intent of any provisions
                           thereof.

             Taxes            36. Where used in this Lease, the term "taxes"
                           means all ad valorem taxes, personal property taxes,
                           and all other taxes, assessments, use and occupancy
                           taxes, transit taxes, water and sewer charge,
                           excises, levies, license and permit fees and all
                           other similar charges, if any, which are levied,
                           assessed, or imposed upon or become due and payable
                           in connection with, or a lien upon, the land, the
                           Building, or facilities used in connection therewith,
                           and rentals or receipts therefrom, and all taxes of
                           whatsoever nature that are imposed in substitution
                           for or in lieu of any of the taxes, assessments, or
                           other charges included in this definition of taxes;
                           provided, however, taxes shall not include the
                           portion, if any of ad valorem taxes against the
                           Leased Premises that is paid by Tenant as a separate
                           charge.

             Possession       37. If, for any reason, the Leased Premises shall
                           not be ready for occupancy by Tenant at the time of
                           commencement of this Lease, this Lease shall not be
                           affected thereby, nor shall Tenant have any claim
                           against Landlord by reason there of, but no rent
                           shall be payable for the period during which the
                           Leased Premises shall not be ready for occupancy; and
                           all claims for damages arising out of such delay are
                           waived and released by Tenant.

                                                        -18-
<PAGE>

           Right to           38. Notwithstanding anything herein to the
           Relocate        contrary, Landlord shall in all cases retain the
                           right and power to relocate Tenant within the
                           Building, in space which is comparable in size and
                           location and suited to the Tenant's use, such right
                           and power to be exercised reasonably and such
                           relocation to be made at Landlord's sole cost and
                           expense. Landlord shall not be liable or responsible
                           for any claims, damages or liabilities in connection
                           with or occasioned by such relocation. Landlord's
                           reasonable exercise of such right and power shall
                           include, but shall in no way be limited to, a
                           relocation to consolidate the Rentable Square Feet
                           occupied in order to provide Landlord's services more
                           efficiently or a relocation to provide contiguous
                           vacant space for a prospective Tenant.

           Pronouns           39. When this Lease agreement is executed by more
           and Gender      than one person, it shall be construed as though
                           Tenant were written "Tenants" and the words in their
                           number were changed to correspond; and pronouns of
                           the masculine gender, whenever used herein shall
                           include persons of the female sex, and corporations
                           and associations of every kind and character.

           Severability       40. If any term, covenant, condition or provision
                           of this Lease or the application thereof to any
                           person or circumstance shall, to any extent, be
                           invalid or unenforceable, the remainder of this
                           Lease, or the application of such term, covenant,
                           condition or provision to persons or circumstances
                           other than those as to which it is held invalid or
                           unenforceable, shall not be affected thereby, and
                           each term, covenant, condition or provision of this
                           Lease shall be valid and be enforced to the fullest
                           extent permitted by law.

           Entire             41. This Lease, together with the Rules and
           Agreement       Regulations and any addendum attached hereto and
                           initialed for identification on behalf of both
                           parties hereto, contains all of the agreements,
                           representations and arrangements between the parties
                           hereto as to the Leased Premises and any and all
                           rights which either party may have had under any
                           prior or contemporaneous written or oral agreement or
                           representation are hereby cancelled and terminated in
                           all respects. This Lease cannot be changed, amended
                           or extended except by written instrument signed by
                           both parties hereto. The paragraphs captioned set
                           forth above are for convenience only and do not limit
                           or modify the terms and provisions hereof.

           Not Binding        42. The submission or delivery of this document
           until Execution for examination and review does not constitute an
                           option, an offer to lease space in the Building or an
                           agreement to lease. This document shall no binding
                           affect on the parties unless and until executed by
                           both landlord and Tenant. Once executed by both
                           Landlord and Tenant, all the terms, covenants and
                           conditions shall be effective unless otherwise
                           expressly specified that they shall be effective or
                           commence at some future time.

                           The terms of this Lease shall be binding upon and
                           benefit of the parties hereto and their respective
                           representatives, successors and assigns.

                                EXECUTED on this the     day of , 1998

                                                        -19-
<PAGE>

                ATTEST:                  LOEB PARTNERS REALTY & DEVELOPMENT
                                         CORP. AS AGENT FOR VIOLET REALTY, INC.
                By[ILLEGIBLE]            By: /s/ Alan L. Gordon
                  --------------------
                                         Name: Alan L. Gordon
                                              --------------------------------

                                         Title:  VP
                                               -------------------------------
                                         Date:   10/8/98
                                               -------------------------------

                ATTEST:                  COMMUNITY NETWORKS

                By:[ILLEGIBLE]           By: /s/ Scott M. Matukas
                  --------------------      ----------------------------------
                                         Name: Scott M. Matukas
                                              --------------------------------
                                         Title:  VP-Finance
                                               -------------------------------
                                         Date:   9/22/98
                                               -------------------------------

                OF LANDLORD:

                STATE OF           )         Date: 9/22/98
                                   )ss:
                COUNTY OF          )

                              Personally Appeared
                of Loeb Partners Realty & Development Corp. as agent for Violet
                Realty, Inc., signer and sealer of the foregoing instrument and
                acknowledged the same to be his free act and the free act and
                deed of said corporation before me.

                                          __________________________________
                                          Notary Public

                OF TENANT (IF INDIVIDUAL OR PARTNERSHIP):

                STATE OF           )      Date:
                                   )ss:
                COUNTY OF          )
                              Personally Appeared

                signer(s)and sealer(s)of the foregoing instrument and
                acknowledged the same to be his (their)free act and deed before
                me.

                                          __________________________________
                                          Notary Public

                OF TENANT (IF CORPORATION):

                STATE OF New York  )      Date: 9/22/98
                                   )ss:
                COUNTY OF Onondaga )

                Scott Matukas Personally appeared of Scott Matukas
                signer and sealer of the foregoing instrument and acknowledged
                the same to be his free act and the free act and deed of said
                corporation before me.

                                          /s/ Tracy E. Blair
                                          -------------------------------
                                          Notary Public

                                   [SEAL] Tracy E. Blair
                                          Notary Public State of New York
                                          Qualified in Onondaga County
                                          Reg. 01BL5017617
                                          My Comm. Expires 9-7-97
                                                           ------

                                                        -20-
<PAGE>

                                LIBERTY BUILDING
                             "RULES AND REGULATIONS"

                          1. The sidewalks, halls, passages, exits, entrances,
                elevators, shopping malls, escalators and stairways of the
                Building shall not be obstructed by any of the Tenants or used
                by them for any purpose other than for ingress to and egress
                from the their respective premises. The halls, passages, exits,
                entrances, elevators, escalators and stairways are not for the
                use of the general public, and Landlord shall in all cases
                retain the right to control and prevent access thereto of all
                persons whose presence in the judgment of Landlord shall be
                prejudicial to the safety, character, reputation and interests
                of the Building and its Tenants, provided that nothing herein
                contained shall be construed to prevent such access to persons
                with whom any Tenant normally deals with in the ordinary course
                of his business, unless such persons are engaged in illegal
                activities. No Tenant and no employee, agent or invitee of any
                Tenant shall go upon the roof of the Building.

                          2. No sign, placard, picture, name, advertisement or
                notice, visible from the exterior of any Tenant's premises shall
                be inscribed, painted, affixed or otherwise displayed by any
                Tenant on any part of the Building without the prior written
                consent of Landlord, and Landlord shall have the right to remove
                any such sign, placard, picture, name, advertisement or notice
                at Tenant's expense and without notice to Tenant. If Landlord
                shall have given such consent at any tima, such consent shall be
                deemed to relate only to the particular sign, placard, picture,
                name, advertisement or notice so consented to by Landlord and
                shall not be construed as dispensing with the necessity of
                obtaining the specific written ten consent of Landlord with
                respect to each and every other sign, placard, picture, name,
                advertisement or notice. Landlord wi11 adopt and furnish to
                Tenant, uniform rules and regulations relating to signs on the
                office floors which shall be applicable to all Tenants occupying
                space on the office floors of the Building, and Tenant agrees to
                conform to such rules and regulations. All approved signs or
                lettering on doors shall be printed, painted, affixed or
                inscribed at the expense of Tenant by a person approved by
                Landlord.

                          3. Landlord will furnish each Tenant with two keys
                free of charge. Landlord may make a reasonable charge for any
                additional keys. No Tenant shall have any keys made. No Tenant
                shall alter any lock or install a new or additional lock or any
                bolt on any door of his premises without prior written consent
                of Landlord. If Landlord shall give its consent, the Tenant
                shall in each case furnish Landlord with a key for any such
                lock. Each Tenant upon termination of his tenancy, shall deliver
                to Landlord all keys to doors in the Building which shall have
                been furnished to Tenant.

                          4. No Tenant shall use or keep in, on, or about the
                premises of the Building any kerosene, gasoline or inflammable
                or combustible fluid or material, or use any method of heating
                or air conditioning other than that supplied by Landlord. No
                Tenant shall use, keep or permit to be used or kept any foul or
                noxious gas or substance in, or about the premises, or permit or
                suffer the premises to be occupied or used in a manner offensive
                or objectionable to Landlord or other occupants of the Building
                by reason of noise, odors and/or vibrations, or interfere in any
                way with other Tenants or those having business therein.

                          5. The premises shall not be used for the storage of
                merchandise or for lodging, and no cooking shall be done or
                permitted by any Tenant on the premises,except that the
                preparation of coffee, tea, hot chocolate and similar items for
                Tenant and his employees shall be permitted.

                          6. No animals, or birds, or bicycles shall be allowed
                in the offices halls, corridors, elevators or elsewhere in the
                Building.

                          7. No Tenant shall employ any person or persons other
                than the janitor of Landlord for the purpose of cleaning the
                premises, unless otherwise agreed to by Landlord in writing.
                Except with the

                                                       -21-
<PAGE>

                written consent of Landlord, no person or persons other than
                those approved by Landlord shall be permitted to enter the
                Building for the purpose of cleaning the same. No Tenant shall
                cause any unnecessary labor by reason of such Tenant's
                carelessness or indifference in the preservation of good order
                and cleanliness. Landlord shall in no way be responsible to any
                Tenant for any loss of property on the premises, however
                occurring, of for any damage done to the furniture or other
                effects of any Tenant by the janitor or any other employee or
                any other person. Janitor service shall include ordinary dusting
                and cleaning by the janitor assigned to such work and shall not
                include shampooing of carpets or rugs or moving of furniture or
                other special services. Janitor services will not be furnished
                on nights when rooms are occupied after 6:30 P.M.

                          8. Landlord reserves the right to exclude from the
                Building between the hours of 6:00 P.M. and 7:00 A.M. and at all
                hours on Sunday, legal holidays and after 1:00 P.M. on Saturdays
                all persons who do not present a pass to the Building signed by
                Landlord. Landlord will furnish passes to persons for whom any
                Tenant requests the same in writing. Each Tenant shall be
                responsible for all persons for whom he requests passes and
                shall be liable to Landlord for all acts of such persons.
                Landlord shall in no case be liable for damages for any error
                with regard to the admission to or exclusion from the Building
                of any person. In the case of invasion, mob, riot, public
                excitement, or other circumstances rendering such action
                advisable in Landlord's opinion, Landlord reserves the right to
                prevent access to the Building during the continuance of the
                same by such actions as Landlord may deem appropriate, including
                closing and locking doors.

                          9. No Tenant shall obtain for use in the premises ice,
                drinking water, food, beverage, towel or other similar services,
                or accepting barbering or bootblacking services in the premises,
                except from persons authorized by Landlord, and at hours and
                under regulations fixed by Landlord.

                          10. Each Tenant shall see that doors of his premises
                are closed and securely locked and must observe strict care and
                caution that all water faucets, water apparatus and utilities
                are shut off before Tenant or Tenant's employees leave the
                premises, so as to prevent waste or damage, and for any default
                or carelessness Tenant shall make good all injuries sustained by
                other Tenants or occupants of the Building or Landlord. On
                multiple-tenancy floors, all Tenants shall keep the door or
                doors to the Building corridors closed at all times except for
                ingress and egress.

                          11. No curtains, draperies, blinds, shutters, shades,
                screens or other coverings, hanging or decorations shall
                attached to, hung or placed in, or used in connection with any
                window of the Building without the prior written consent of
                Landlord. In any event, with the prior written consent of
                Landlord, said above items shall be installed inboard of
                Landlord's standard window covering and shall in no way be
                visible from the exterior of the Building.

                          12. The toilet rooms, toilets, urinals, wash bowls and
                other apparatus shall not be used for any purpose other than
                that for which they were constructed, no foreign substance of
                any kind whatsoever shall be thrown therein, and the expense of
                any breakage, stoppage or damage resulting from the violation of
                this rule shall be borne by the Tenant who, or whose employees,
                agents or invitees, shall have caused it.

                          13. Except with the prior written consent of Landlord,
                no Tenant shall sell, or permit the sale of newspapers,
                magazines, periodicals, theatre tickets or any other goods or
                merchandise in or on the premises, nor shall any Tenant carry
                on, or permit or allow any employee or other person to carry on,
                the business of stenography, typewriting or any similar business
                in or from the premises for the services or accommodation of
                occupants of any other portion of the Building.

                          14. No Tenant shall install any radio or television
                antenna, loudspeaker or other device on the roof or exterior
                walls of the Building.

                                                        -22-
<PAGE>

                          15. There shall not be used in any space, or in the
                public halls of the Building, either by any Tenant or others,
                any hand trucks except those equipped with rubber tires and side
                guards. No other vehicles of any kind shall be brought by any
                Tenant, his employees, agents or invitees into the Building or
                kept in or about his premises.

                          16. Each Tenant shall store all his trash and garbage
                within his premises. No material shall be placed in the trash
                boxes or receptacles if such material is of such nature that it
                may be disposed of in the ordinary and customary manner of
                removing and disposing of trash and garbage in the City of
                Buffalo, without being in violation of any law or ordinance
                governing such disposal. All garbage and refuse disposal shall
                be made only through entryways and elevators provided for such
                purposes and at such times as Landlord shall designate.

                          17. Canvassing, soliciting, and peddling in the
                Building are prohibited, and each Tenant shall cooperate to
                prevent the same.

                          18. The requirements of Tenant vi11 be attended to
                only upon application at the office of the Building. Employees
                of Landlord shall not perform any work or do anything outside of
                their regular duties unless under special instructions from
                Landlord.

                          19. A Building bulletin board wi11 be provided for the
                display of the name and location of Tenant only, and Landlord
                reserves the right to exclude any other names therefrom. Any
                additional name which Tenant shall desire to place upon said
                bulletin board must first be approved by Landlord, and, if so
                approved, a charge will be made therefor.

                          20. Landlord may waive any one or more of these Rules
                and Regulations for the benefit of any particular Tenant or
                Tenants, but no such waiver by Landlord shall be construed as a
                waiver of such Rules and Regulations in favor of any other
                Tenant or Tenants, nor prevent Landlord from hereafter enforcing
                any such Rules and Regulations against any or all of the Tenants
                of the Building.

                          21. These Rules and Regulations are in addition to and
                shall not be construed to in any way modify, alter or amend, in
                whole or in part, the terms, covenants, agreements and
                conditions of any lease of premises in the Building.

                          22. Landlord reserves the right to make such other and
                reasonable rules and regulations and to modify these Rules and
                Regulations as in its judgment may from time to time be needed
                for the safety, care and cleanliness of the Building, and
                for the preservation of good order therein.

                                     -23-
<PAGE>

                    [MAP OF LIBERTY BUILDING APPEARS HERE]

THE LIBERTY BUILDING
5TH FLOOR
NOT TO SCALE
DWN BY: RYAN R. O'BRIEN
DATE: 9/10/98

                                  EXHIBIT "A"
<PAGE>

                                        RIDER

                          RIDER attached to and made part of the Lease dated
                       day of September, 1998 between violet Realty, Inc.,
                as Landlord, and Community Networks, as Tenant, as follows:

                Premises Condition: Tenant agrees to take the space in "as is"
                                    condition.

                Building Conference Landlord grants Tenant permission to use
                Room(s):            the Building Conference Room in the Main
                                    Place Tower, located at 350 Main Street,
                                    commencing October 1, 1998 to December 31,
                                    1998 for a period of one (1)hour per day
                                    between 8:00 a.m. and 5:00 p.m., based upon
                                    first come, first serve. After December 31,
                                    1998, Tenant shall be permitted use of the
                                    Main Place Tower Conference Room and/or the
                                    Liberty Building conference Room for a
                                    combined total of three (3)days a month,
                                    based upon first come, first serve, at no
                                    charge. Tenant shall be charge $100.00 for
                                    each day of use of the Main Place Tower
                                    Conference Room and/or the Liberty Building
                                    Conference Room through the end of the
                                    month, for the duration of the Lease.
<PAGE>

                              FIRST LEASE AMENDMENT
                              ---------------------

     AGREEMENT made this 29th day of July, 1999, between Violet Realty, Inc.
(hereinafter called "Landlord")and Community Networks (hereinafter called
"Tenant").

                                   WITNESSETH

     WHEREAS, Landlord and Tenant entered into that certain Lease dated
October 8, 1998 (the "Lease"), demising space in the Liberty Building located at
416-426 Main Street, Buffalo, New York (the "Building"); and

     WHEREAS, Landlord and Tenant desire to modify, amend and extend the terms
of said Lease.

     NOW, THEREFORE, in consideration of the mutual promises contained herein
and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto agree as follows:

            1. This Lease shall be extended for a term of one (1) year beginning
               on the 1st day of October, 1999 (hereinafter referred to as
               "Commencement Date") and to end on the 30th day of September,
               2000 ("Extended Term"). Leased Premises for the Extended Term
               shall consist of 2,029 rentable square feet as shown crosshatched
               on attached Exhibit "A".

            2. In addition to all other rents and charges due, commencing on
               October 1, 1999, Tenant shall pay Landlord an annual base rent of
               Twenty-six Thousand, Eight-Hundred Eighty-four and 25/l00
               Dollars ($26,884.25). Such sum is to be paid in twelve (12) equal
               monthly installments without demand and without deduction,
               abatement or set-off for any cause, the first of such monthly
               installments to be due and payable on the first day of October,
               1999, with a like installment to be due and payable each month
               during the term of the Lease.

            3. Tenant agrees to take the Leased Premises in an "as is"
               condition.

            4. Tenant warrants and represents that he has not had any dealing
               with any Realtor, broker or agent, except Equis of New York,
               Inc., in connection with the negotiation of this Amendment and
               Tenant agrees to pay and to hold harmless from any cost, expense
               (including
<PAGE>

               reasonable cost of suit and attorney's fees) or liability for any
               compensation, commission or charges claimed by any Realtor,
               broker or agent with respect to this Amendment and the
               negotiations thereof.

            5. Except as hereby specifically modified, all of the terms,
               covenants and conditions of the Lease shall remain in full force
               and effect and are hereby ratified and affirmed by the parties
               hereto.

            6. Should there be any conflicts between this Amendment and the
               Lease, then the terms and conditions this Amendment shall govern
               and control.

            7. Not Binding Until Execution. The submission or delivery of
               this document for examination and review does not constitute an
               option, an offer to lease space in the Building or an agreement
               to lease. This document shall have no binding affect on the
               parties unless and until executed by both Tenant and Landlord.
               Once executed by both Tenant and Landlord, all the terms,
               covenants and conditions shall be effective or commence at some
               future time.

            IN WITNESS WHEREOF, the parties hereto have executed this Lease

        Amendment as of the day and year first above written.

        WITNESS:                           LOEB PARTNERS REALTY & DEVELOPMENT
                                           CORP., AS AGENT FOR VIOLET REALTY,
                                           INC.

        _______________________            By: /s/ Alan L. Gordon
                                              ----------------------------
                                           Name:  Alan L. Gordon
                                           Title: Vice President

                                           Date:  9/2/99
                                                --------------------------

        WITNESS:                           COMMUNITY NETWORKS

        Diane Kahn
        _______________________            By: /s/ Scott M. Matuks
                                              ----------------------------
                                           Name:  Scott M. Matuks
                                           Title: Vice President

                                           Date:  7/29/99
                                                --------------------------

                                           2
<PAGE>

                    [MAP OF LIBERTY BUILDING APPEARS HERE]

THE LIBERTY BUILDING
5TH FLOOR
NOT TO SCALE
DWN BY: RYAN R. O'BRIEN
DATE: 9/10/98

                                  EXHIBIT "A"
<PAGE>

                             SECOND LEASE AMENDMENT

     THIS SECOND LEASE AMENDMENT ("Amendment") is entered into this 26th day of
January, 2000, by and between VIOLET REALTY, INC., having an address at 2100
Liberty Building, Buffalo, New York ("Landlord") and BROADVIEW NETWORKS, f/k/a
Community Networks, having an address at 500 Liberty Building, Buffalo, New York
("Tenant").

                                   WITNESSETH

     WHEREAS, Landlord and Tenant previously entered into that certain Lease
dated October 8, 1998, as amended by First Lease Amendment dated July 29, 1999
(executed by Landlord on September 2, 1999)(the "Lease"), pursuant to which
Tenant agreed to lease from Landlord 2,029 rentable square feet of office space
designated as Room Suite 500 on the 5th floor in that certain office building
known as the Liberty Building, located at 416-426 Main Street, Buffalo, New York
(the "Building"); and

     WHEREAS, Landlord and Tenant desire to modify, extend and amend the terms
of the Lease.

     NOW, THEREFORE, in consideration of mutual promises contained herein and
for other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, and intending to be bound hereby, the parties hereto
agree as follows:

               1. The Lease is hereby amended as follows:

                      a. The Leased Premises are hereby modified to contain
                         2,303 rentable square feet of office space which is an
                         expansion of 274 rentable square feet ("Expansion
                         Area") from the original 2,029 rentable square feet
                         ("Original Leased Premises"). The Original Leased
                         Premises together with the Expansion Area (as further
                         defined on attached Exhibit "A")are hereafter referred
                         to as the "Modified Leased Premises".

                      b. As the term of the Lease currently expires on September
                         30, 2000, the parties wish to extend the existing term
                         for four (4) months to January 31, 2001 ("Extended
                         Term"). All terms, covenants and conditions of the
                         Lease, including, but not limited to, the terms of this
                         Amendment, shall commence relative to the Expansion
                         Area on February 1, 2000 ("Commencement Date").

                      c. In addition to all other rents and charges due under
                         the Lease, Tenant shall pay Landlord an annual base
                         rent of Three Thousand Six Hundred Thirty and 50/100
                         Dollars ($3,630.50)for the Expansion Area to be paid in
                         twelve (12) equal monthly installments of $302.54
                         payable without demand and without deduction, abatement
                         or set-off for any cause, the first of such monthly
                         installments to be due and payable on the Commencement
                         Date, with a like installment to be due and payable on
                         the first day of each month thereafter through and
                         including the final month of the Extended Term of the
                         Lease.

                      d. In addition to all other rents and charges due under
                         the Lease, the annual base rent of Twenty-Six Thousand
                         Eight Hundred Eighty-Four and 25/100 Dollars
                         ($26,884.25) payable by Tenant under the Lease for the
                         Original Leased Premises shall remain unchanged as to
                         the amount and shall continue to be paid in twelve
                         (12) equal monthly installments of $2,240.35 due and
                         payable on the first day of each month hereafter
                         through and including the final month of the Extended
                         Term of the Lease.

                      e. Tenant agrees to take the Expansion Area in an "as is"
                         condition.

                      f. Pursuant to Section 28 of the Lease, Tenant shall
                         deposit an additional $302.54 as security for Tenant's
                         performance and observance of all terms, covenants and
                         conditions of the Lease. Such sum shall be governed by
                         the terms of the Lease.

                                      1
<PAGE>

                2. Tenant warrants and represents that Tenant has not had any
                   dealinga with any realtor, broker, or agent in connection
                   with the negotiation of this Amendment, except Equis of New
                   York, Inc., and Tenant agrees to pay and to hold Landlord
                   harmless from any cost, expense (including reasonable cost of
                   suit and attorneys' fees) or liabiity for any compensation,
                   commission or charges claimed by any realtor, broker, or
                   agent other than those named above with respect to this
                   Amendment and the negotiations thereof In the event of
                   default or early Lease termination, it is expressly agreed
                   that any leasing commission monies actually paid by Landlord
                   to a broker or agent pursuant to entering into this Amendment
                   shall be included when determining the extent of damages
                   incurred by Landlord by reason of Tenant's default.

                3. Every reference in the Lease to the Leased Premises (which in
                   this Amendment is referred to as the Original Leased
                   Premises) shall now mean the Modified Leased Premises as
                   defined herein.

                4. Except as speci&ally modified by this Amendment, all of the
                   terms, covenants and conditions of the Lease shall remain in
                   full force and effect and are hereby ratified and affirmed
                   by the parties hereto. All defined terms contained in this
                   Agreement shall have the meanings given to them in the Lease
                   unless otherwise defined herein.

                5. In the event of a conflict between any provision of this
                   Amendment and the Lease, the terms and conditions of this
                   Amendment shall govern and control.

                6. The submission or delivery of this document for examination
                   and review does not constitute an option, an offer to lease
                   space in the Building or an agreement to lease. This
                   Amendment shall have no binding effect on the parties unless
                   and until executed by both Landlord and Tenant. Once executed
                   by both Landlord and Tenant, all the terms, covenants and
                   conditions of this Amendment shall be effective unless
                   otherwise expressly specified that they shall be effective or
                   commence at some future time.

                   IN WITNESS WHEREOF, the parties hereto have duly executed
        this Amendment as of the day and year first above written.

        WITNESS:                            LANDLORD:

                                            LOEB PARTNERS REALTY & DEVELOPMENT
                                            CORP., AS AGENT FOR VIOLET REALTY,
                                            INC.

        ___________________________         By:_____________________________
                                            Name: Alan L. Gordon
                                            Title: Vice President

                                            Date:

        WITNESS:                            TENANT:

                                            BROADVIEW NETWORKS

        ___________________________         By: /s/ Scott M. Matukas
                                                ----------------------------
                                            Name:  Scott M. Matukas
                                            Title: VP-Admin

                                            Date:  1/26/00
                                                 ---------------------------

                                                                    2
<PAGE>

                    [MAP OF LIBERTY BUILDING APPEARS HERE]

THE LIBERTY BUILDING
5TH FLOOR
NOT TO SCALE
DWN BY TIM BURKE
DATE 1/14/00

                                  EXHIBIT "A"

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00001-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00001-of-00352.parquet"}]]