Document:

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                                                                    EXHIBIT 10.5

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                                 ACTIVCARD S.A.

                           1997 U.S. STOCK OPTION PLAN

      In accordance with articles 208-1 to 208-2 of the French Commercial Act of
July 24, 1966 (the "Commercial Companies Act"), the general meeting of the
shareholders of ACTIVCARD S.A. ("ACTIVCARD S.A.") held on May 31, 1996, and on
September 26, 1996, and June 17, 1997, approved the establishment of a stock
option plan (the "1997 Plan") for full-time employees of ACTIVCARD S.A. and of
its subsidiaries; in particular, the U.S. subsidiary ACTIVCARD, Inc. ("ActivCard
US"). The purpose of this document is to set forth the terms and conditions for
the grant of options to employees of ActivCard US under the 1997 Plan, as
determined by the Board of Directors of ACTIVCARD S.A. taking into account the
modifications resulting from the last resolution adopted by the General Meeting
of Shareholders on September 26, 1996:

1.    DEFINITIONS.  As used herein, the following definitions shall apply:

      (A)   "ADMINISTRATOR" means the Board or any Committee appointed to
administer the Plan.

      (B)   "APPLICABLE LAWS" means the legal requirement relating to the
administration of stock option plans, if any, under applicable provision of U.S.
federal securities laws, California corporate and securities laws, the Code, the
rules of any applicable stock exchange or national markets system, and
provisions of French Law applicable to Options granted by companies organized
under the laws of France.

      (C)   "BOARD" means the Board of Directors of the Company.

      (D)   "CODE" means the Internal Revenue Code of 1986, as amended.

      (E)   "COMMITTEE" means any committee appointed by the Board to administer
the Plan.

      (F)   "COMPANY" means ACTIVCARD S.A.

      (G)   "CONTINUOUS STATUS AN EMPLOYEE, CONSULTANT OR DIRECTOR" means that
the employment relationship, consulting relationship or directorship with the
Company, any Parent or Subsidiary, is not interrupted or terminated.

      (H)   "EMPLOYEE" means any person, including an officer or director, who
is a full-time employee of the Company or any Parent or Subsidiary.

      (I)   "EXCHANGE ACT" means the Securities Exchange Act of 1934, as
amended.

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      (J)   "FAIR MARKET VALUE" means as of any date, the French franc value of
the U.S. dollar value of a Share, calculated with reference to the NOON buying
rate reported by the Federal Reserve Bank of New York (expressed in francs per
$1.00) determined as follows:

            (I)   If the shares are listed on any established stock exchange
or a national market system, including without limitation the [EASDAQ] the
Nasdaq National Market or the Nasdaq Small Cap Market of the Nasdaq Stock
Market, the Fair Market Value of a Share shall be THE CLOSING SALES PRICE FOR
SUCH SHARE (or the closing bid, if no sales were reported) as quoted on such
system or exchange or the day of determination, as reported in THE WALL
STREET JOURNAL or such source as the Board deems reliable;

            (II)  If the Shares are regularly quoted by a recognized securities
dealer but selling prices are not reported, the Fair Market value of a Share
shall be the means between the high bid and low asked prices for the Shares on
the day of determination, as reported in THE WALL STREET JOURNAL or such other
source as the Board deems reliable;

            (III) In the absence of an established market for the Shares or the
Ordinary Shares, the Fair Market Value shall be determined in good faith by the
Board.

      (K)   "INCENTIVE STOCK OPTION" means an Option intended to qualify as an
incentive stock option within the meaning of Section 422 of the Code.

      (L)   "NON-QUALIFIED STOCK OPTION" means an Option not intended to qualify
as an Incentive Stock Option.

      (M)   "OPTION" means a stock option granted pursuant to the Plan.

      (N)   "OPTION AGREEMENT" means the written or electronic agreement
evidencing the grant of an Option executed by the Company and the Optionee,
including any amendments thereto.

      (O)   "OPTIONED STOCK" means the Shares subject to an Option.

      (P)   "OPTIONEE" means an Employee who receives an Option under the Plan.

      (Q)   "PARENT" means a "parent corporation," whether now or hereafter
existing, as defined in Section 424(e) of the Code.

      (R)   "PLAN" means this 1997 U.S. Stock Option Plan.

      (S)   "SHARE" means an Ordinary share of the Company.

      (T)   "SUBSIDIARY" means a "subsidiary corporation", whether now or
hereafter existing, as defined in Section 424(f) of the Code.

                                      -2-

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2.   STOCK SUBJECT TO THE PLAN.

     (A)   Subject to the provisions of Section 9, below, the maximum
aggregate number of Shares which may be optioned and sold under the Plan is
1,200,000 Shares.  The Shares may be authorized, but unissued, or reacquired
Shares.

     (B)   If any Option expires or becomes unexercisable without having been
exercised in full, or is surrendered pursuant to an Option exchange program,
such unissued Shares shall become available for future grant under the Plan.
Shares that actually have been issued under the Plan shall not be become
available for future distribution under the Plan.

3.   ADMINISTRATION OF THE PLAN.

     (A)   PLAN ADMINISTRATOR.  The Plan shall be administered by (A) the
Board or (B) a Committee (or a subcommittee of such Committee) designated by
the Board, which Committee shall be constituted in such a manner as to
satisfy Applicable Laws.  Once appointed, such Committee shall continue to
serve in its designated capacity until otherwise directed by the Board.

     (B)   POWERS OF THE ADMINISTRATOR.  Subject to Applicable Laws and the
provisions of the Plan (including any other powers given to the Administrator
hereunder), and except as otherwise provided by the Board, the Administrator
shall have the authority, in its discretion:

           (I)    to select the Employees to whom Options may be granted form
time to time hereunder;

           (II)   to determine whether and to what extent Options are granted
hereunder;

           (III)  to determine the number of Shares to be covered by each
Option granted hereunder;

           (IV)   to approve forms of Option Agreement for use under the Plan;

           (V)    to determine the terms and conditions of any Option granted
hereunder;

           (VI)   to establish additional terms, conditions, rules or
procedures to accommodate the rules or laws of France and to afford Optionees
favorable treatment under such laws; provided, however, that no Option shall
be granted under any such additional terms, conditions, rules or procedures
with terms or conditions which are inconsistent with the provisions of the
Plan;

           (VII)  to construe and interpret the terms of the Plan and Options
granted pursuant to the Plan; and

           (VIII) to take such other actions, not inconsistent with the terms
of the Plan, as the Administrator deems appropriate.

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     (C)   EFFECT OF ADMINISTRATOR'S DECISION.  All decisions,
determinations and interpretations of the Administrator shall be conclusive
and binding on all persons.

4.   ELIGIBILITY.  Options may be granted only to full-time Employees who are
not employees of the Company for French tax purposes.  An [EMPLOYEE] who has
been granted an Option may, if otherwise eligible, be granted additional
Options.

5.   TERMS AND CONDITIONS OF OPTIONS.

     (A)   DESIGNATION OF OPTIONS.  Each Option shall be designated as either
an Incentive Stock Option or a Non-Qualified Stock Option.  However,
notwithstanding such designation, to the extent that the aggregate Fair
Market Value of Shares subject to Options designated as Incentive Stock
Options which become exercisable for the first time by any Optionee during
any calendar year (under all plans of the Company or any Parent or
Subsidiary) exceeds $100,000, such excess Options shall be treated as
Non-Qualified Stock Options. For this purpose, Incentive Stock Options shall
be taken into account in the order in which they were granted, and the Fair
Market Value of the Shares shall be determined as of the date the Option with
respect to such Shares is granted.

     (B)   CONDITIONS OF OPTION.  Subject to the terms of the Plan, the
Administrator shall determine the provisions, terms, and conditions of each
Option.

     (C)   TERM OF OPTION.  The term of each Option shall be the term stated
in the Option Agreement, provided, however, that the term shall be no more
than ten (10) years from the date of grant thereof. However, in the case of
an Incentive Stock Option granted to an Optionee who, at the time the Option
is granted, owns stock representing more than ten percent (10%) of the voting
power of all classes of stock of the Company or any Parent or Subsidiary, the
term of the Option shall be five (5) years form the date of grant thereof or
such shorter term as may be provided in the Option Agreement.

     (D)   NON-TRANSFERABILITY OF OPTIONS AND STOCK PURCHASE RIGHTS.  Unless
determined otherwise by the Administrator, an Option may not be sold,
pledged, assigned, hypothecated, transferred, or disposed of in any manner
other than by will or by the laws of descent or distribution and may be
exercised, during the lifetime of the Optionee, only by the Optionee. If the
Administrator makes an Option transferable, such Option shall contain such
additional terms and conditions as the Administrator deems appropriate.

     (E)   TIME OF GRANTING OPTIONS.  The date of grant of an Option shall
for all purposes, be the date on which the Administrator makes the
determination to grant such Option, or such other date as is determined by
the Administrator. Notice of the grant determination shall be given to each
Employee to whom an Option is so granted within a reasonable time after the
date of such grant.

6.   OPTION EXERCISE PRICE AND CONSIDERATION; TAXES

     (A)   INCENTIVE STOCK OPTIONS.  In the case of an Incentive Stock Option:

                                      -4-
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           (A)  granted to an Employee who, at the time the Incentive Stock
Option is granted, owns stock representing more than ten percent (10%) of the
voting power of all classes of stock of the Company or any Parent or
Subsidiary, the per Share exercise price shall be no less than 110% of the
Fair Market Value per Share on the date of grant.

           (B)  granted to any Employee other than an Employee described in
paragraph (A) immediately above, the per Share exercise price shall be no
less than 100% of the Fair Market Value per Share on the date of grant.

     (B)   NON-QUALIFIED STOCK OPTION.  In the case of a Non-Qualified Stock
Option:

           (A)  granted to a person who, at the time of the grant of such
Option, owns stock representing more than ten percent (10%) of the voting
power of all classes of stock of the Company or any Parent or Subsidiary, the
per Share exercise price shall be not less than one hundred ten percent
(110%) of the Fair Market Value per Share on the date of grant.

           (B)  granted to any person other than a person described in the
preceding paragraph, the per Share exercise price shall be not less than
eighty-five percent (85%) of the Fair Market Value per Share on the date of
grant.

     (C)   CONSIDERATION.  Subject to Applicable Laws, the method of payment
for Shares to be issued upon exercise of an Option shall be determined by the
Administrator (and, in the case of an Incentive Stock Option, shall be
determined at the time of grant).

     (D)   TAXES.  No Shares shall be delivered under the Plan to any
Optionee or other person until such Optionee or other person has made
arrangements acceptable to the Administrator for the satisfaction of any
foreign, federal, state, or local income and employment tax withholding
obligations, including, without limitation, obligations incident to the
receipt of Shares or the disqualifying disposition of Shares received on
exercise of an Incentive Stock Option. Upon exercise of an Option the Company
shall withhold or collect from Optionee an amount sufficient to satisfy such
tax obligations.

7.   EXERCISE OF OPTION.

     (A)   PROCEDURE FOR EXERCISE: RIGHTS AS A SHAREHOLDER.

           (I)  Any Option granted hereunder shall vest and become
exercisable as follows: twenty-five percent (25%) of the Shares subject to
the Option shall vest one year after the Option's vesting Commencement Date
(as set forth in the Optionee's Notice of Grant), and one forty-eighth (1/48)
of the Shares subject to the Option shall vest each month thereafter;
provided that the Optionee's Continuous Status as an Employee, Consultant or
Director has not terminated on such dates.

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           (II)    An Option shall be deemed to be exercised when written
notice of such exercise has been given to the Company in accordance with the
terms of the Option by the person entitled to exercise the Option and full
payment for the Shares with respect to which the Option is exercised has been
received by the Company.  Until the issuance (as evidenced by the appropriate
entry on the books of the Company or of a duly authorized transfer agent of
the Company) of the Shares, no right to vote or receive dividends or any
other rights as a shareholder shall exist with respect to Optioned Stock,
notwithstanding the exercise of an Option.  The Company shall issue (or cause
to be issued) such Shares promptly upon exercise of the Option.  No
adjustment will be made for a dividend or other right for which the record
date is prior to the date the Shares are issued, except as provided in the
Option Agreement or Section 9(a), below.

     (B)  EXERCISE OF OPTION FOLLOWING TERMINATION OF CONTINUOUS STATUS AS AN
EMPLOYEE, CONSULTANT OR DIRECTOR RELATIONSHIP.  In the event of termination
of an Optionee's Continuous Status as an Employee (other than by reason of
disability) such Optionee may, but only within three (3) months after the
date of such termination (but in no event later than the expiration date of
the term of such Option as set forth in the Option Agreement), exercise his
or her Option to the extent that the Optionee was entitled to exercise it at
the date of such termination or to such other extent as may be determined by
the Administrator.  If the Optionee should die within three (3) months after
the date of such termination, the Optionee's estate or the person who
acquired the right to exercise the Option by bequest or inheritance may
exercise the Option to the extent that the Optionee was entitled to exercise
it at the date of such termination within six (6) months of the Optionee's
date of death, but in no event later than the expiration date of the term of
such Option as set forth in the Option Agreement.

     (C)  DISABILITY OF OPTIONEE.  In the event of termination of an
Optionee's Continuous Status as an Employee as a result of his or her
disability, Optionee may, but only within twelve (12) months form the date of
such termination (an in no event later than the expiration date of the term
of such Option as set forth in the Option Agreement), exercise the Option to
the extent otherwise entitled to exercise it at the date of such termination;
provided, however, that if such disability is not a "disability" as such
term is defined in Section 22(c)(3) of the Code, in the case of an Incentive
Stock Option such Incentive Stock Option shall automatically convert to a
Non-Qualified Stock Option on the day three (3) months and one day following
such termination.  To the extent that Optionee is not entitled to exercise
the Option at the date of termination, or if Optionee does not exercise such
Option to the extent so entitled within the time specified herein, the Option
shall terminate.

     (D)  DEATH OF OPTIONEE.  In the event of the death of an Optionee, the
Option may be exercised at any time within twelve (12) months following the
date of death (but in no event later than the expiration of the term of such
Option as set forth in the Option Agreement), by the Optionee's estate or by
a person who acquired the right to exercise the Option by bequest or
inheritance, but only to the extent that the Optionee was entitled to
exercise the Option at the date of death.  If, at the time of death, the
Optionee was not entitled to exercise his or her entire Option, the Shares
covered by the unexercisable portion of the Option shall immediately revert
the Plan.  If, after

                                       -6-

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death, the Optionee's estate or a person who acquired the right to exercise
the Option by bequest or inheritance does not exercise the Option within the
time specified herein, the Option shall terminate.

8.  CONDITIONS UPON ISSUANCE OF SHARES.

     (A)  Shares shall not be issued pursuant to the exercise of an Option
unless the exercise of such Option and the issuance and delivery of such
Shares pursuant thereto shall comply with all Applicable Laws, and, to the
extent deemed necessary, shall be further subject to the approval of counsel
for the Company with respect to such compliance.

     (B)  As a condition to the exercise of an Option, the Company may
require the person exercising such Option to represent and warrant at the
time of any such exercise that the Shares are being purchased only for
investment and without any present intention to sell or distribute such
Shares if, in the opinion of counsel for the Company, such a representation
is required by any Applicable Laws.

9.  ADJUSTMENTS UPON CHANGES IN CAPITALIZATION, MERGER OR SALE OF ASSETS.

     (A)  If the Company carries out any of the financial operations referred
to in article 195, paragraphs 5 and 6 of article 196, paragraphs 1 and 3, of
the French Companies Law, the Board shall, under the conditions prescribed by
law, adjust the number and price of Shares underlying outstanding Options, in
order to take account of the effects of the financial operation.  At the time
any such operation is carried out, the Board of Directors may temporarily
suspend option exercise rights for the period during which the registered
capital for the Company must remain unchanged.

     (B)  In the event of a merger of the Company with or into another
corporation, or the sale of substantially all of the assets of the Company,
each outstanding Option shall be assumed or an equivalent option or right
substituted by the successor corporation or a Parent or Subsidiary of the
successor corporation.  In the event that the successor corporation refuses
to assume or substitute for the Option, the Optionee shall fully vest in and
have the right to exercise the Option as to all of the Optioned Stock,
including Shares as to which it would not otherwise be vested or exercisable.
If an Option becomes fully vested and exercisable in lieu of assumption or
substitution in the event of a merger or sale of assets, the Administrator
shall notify the Optionee in writing or electronically that the Option shall
be fully exercisable for a period of fifteen (15) days from the date of such
notice, and the Option shall terminate upon the expiration of such period.
For the purposes of this paragraph, the Option shall be considered assumed
if, following the merger or sale of assets, the option or right confers to
purchase or receive, for each Share of Optioned Stock subject to the Option
immediately prior to the merger or sale of assets, the consideration (whether
stock, cash, or other securities or property) received in the merger or sale
of assets by holders of Shares for each Share held on the effective date of
the transaction (and if holders were offered a choice of consideration, the
type of consideration chosen by the holders of a majority of the outstanding
Shares);  provided, however, that if such consideration received in the
merger or sale of assets is not solely common stock of the successor
corporation or its Parent, the Administrator may, with the consent of the
successor corporation, provide for the consideration to be received upon the
exercise of the Option,

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for each Share of Optioned Stock subject to the Option, to be solely common
stock of the successor corporation or its Parent equal in fair market value
to the per share consideration received by holders of Shares in the merger or
sale of assets.

10.  TERMS OF PLAN. Options may be granted under these Plan for a period of
five (5) years form the date the Plan was first authorized by the
extraordinary general meeting of the Company's shareholders (May 31, 1996).

11.  AMENDMENT, SUSPENSION OR TERMINATION OF THE PLAN.

     (A)   The Board may at any time amend, suspend or terminate the Plan. To
the extent necessary to comply with Applicable Laws, the Company shall obtain
shareholder approval of any Plan amendment in such a manner and to such a
degree as required.

     (B)   No Option may be granted during any suspension of the Plan or
after termination for the Plan.

     (C)   Any amendment, suspension or termination of the Plan shall not
affect Options already granted, and such Options shall remain in full force
and effect as if the Plan had not been amended, suspended or terminated,
unless mutually agreed otherwise between the Optionee and the Administrator,
which agreement must be in writing and sighed by the Optionee and the Company.

12.  RESERVATION OF SHARES.

     (A)   The Company, during the term of the Plan, will at all times
reserve and keep available such number of Shares as shall be sufficient to
satisfy the requirements of the Plan.

     (B)   The inability of the Company to obtain authority from any
regulatory body having jurisdiction, which authority is deemed by the
Company's counsel to be necessary to the lawful issuance and sale of any
Shares hereunder, shall relieve the Company of any liability in respect of
the failure to issue or sell such Shares as to which such requisite authority
shall not have been obtained.

13.  NO EFFECT ON TERMS OF EMPLOYMENT. The Plan shall not confer upon any
Optionee any right with respect to continuation of employment or consulting
relationship with the Company, nor shall it interfere in any way with his or
her right or the Company's right to terminate his or her employment or
consulting relationship at any time, with or without cause.

14.  INFORMATION TO OPTIONEES. The Company shall provide to each Optionee,
during the period for which such Optionee has one or more Options
outstanding, copies for financial statements as is presented to the annual
ordinary general meeting of the shareholders called to approve the financial
statements of the Company.

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                     ACTIVCARD S.A. 1997 U.S. STOCK OPTION PLAN

                               STOCK OPTION AGREEMENT

I.   NOTICE OF STOCK OPTION GRANT

     Optionee's Name and Address:       Douglas Kernan
                                        17259 Deer Park Road
                                        Los Gatos, CA 95032

     You have been granted an option to purchase shares of Ordinary Shares of
the Company, subject to the terms and conditions of the 1997 Plan and this
Option Agreement, as follows:

<TABLE>

   <S>                                <C>
     Grant Number                       9721

     Date of Grant                      7/28/97

     Vesting Commencement Date          6/16/97

     Exercise Price per Share           $5.75

     Total Number of Shares Granted     70,000

     Total Exercise Price               $402,500.00

     Type of Option:                    $400,000.00   Incentive Stock Option
                                        -------------

                                        $2,500.00     Non-Qualified Stock Option
                                        -------------

     Term/Expiration Date:              6/15/04
</TABLE>

VESTING SCHEDULE:

     Subject to other limitations set forth in this Agreement, this Option
may be exercised, in whole or in part, in accordance with the following
schedule:

     Twenty-five percent (25%) of the Shares subject to the Option shall vest
twelve months after the Vesting Commencement Date, and 1/48th of the Shares
subject to the Option shall vest each month thereafter, so long as Optionee's
Continuous Status as an Employee, Consultant or Director has not terminated
on such dates.

TERMINATION PERIOD:

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     This Option may be exercised for three (3) months after termination of
the Optionee's Continuous Status as an Employee, Consultant or Director, or
such longer period as may be applicable upon death or disability of Optionee
as provided in the 1997 Plan. In no event shall this Option be exercised
later than the Term/Expiration Date as provided above.

II.  AGREEMENT

     1.  GRANT OF OPTION.  ACTIVCARD S.A., a corporation organized under the
laws of France, (the "Company"), hereby grants to the Optionee named in the
Notice of Stock Option Grant (the "Optionee"), an option (the "Option") to
purchase the total number of shares of Ordinary Shares (the "Shares") set
forth in the Notice of Stock Option Grant, at the exercise price per share
set forth in the Notice of Stock Option Grant (the "Exercise Price") subject
to the terms, definitions and provisions of the Company's 1997 Stock Option
Plan (the "1997 Plan"), and the 1997 U.S. Stock Option Plan (the "Plan")
which are incorporated herein by reference. Unless otherwise defined herein,
the terms defined in the Plan shall have the same defined meanings in this
Option Agreement.

         If designated in the Notice of Stock Option Grant as an Incentive
Stock Option, this Option is intended to qualify as an Incentive Stock Option
as defined in Section 422 of the Code. Nevertheless, to the extent that it
exceeds the $100,000 rule of Section 422(d) of the Code, this Option shall be
treated as a Non-Qualified Stock Option.

     2.  EXERCISE OF OPTION.

         (a)  RIGHT TO EXERCISE.  This Option shall be exercisable during its
term in accordance with the Vesting Schedule set out in the Notice of Stock
Option Grant and with the applicable provisions of the Plan and this Option
Agreement. In the event of termination of Optionee's Continuous Status as an
Employee, Director or Consultant, this Option shall be exercisable in
accordance with the applicable provisions of the Plan and this Option
Agreement.

         (b)  METHOD OF EXERCISE.  This Option shall be exercisable only by
delivery of an Exercise Notice (attached as Exhibit A) which shall state the
election to exercise the Option, the whole number of Shares in respect of
which the Option is being exercised, and such other provisions as may be
required by the Administrator. Such Exercise Notice shall be signed by the
Optionee and shall be delivered in person or by certified mail to the
Secretary of the Company accompanied by payment of the Exercise Price. The
Option shall be deemed to be exercised upon receipt by the Company of such
written notice accompanied by the Exercise Price.

              No Shares will be issued pursuant to the exercise of the Option
unless such issuance and such exercise shall comply with all Applicable Laws.
Assuming such compliance, for income tax purposes, the Shares shall be
considered transferred to the Optionee on the date on which the Option is
exercised with respect to such Shares.

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         (c)  TAXES.  No Shares will be issued to the Optionee or any other
person pursuant to the exercise of the Option until the Optionee or such
other person has made arrangements acceptable to the Administrator for the
satisfaction of foreign, federal, state and local income and employment tax
withholding obligations.

     3.  OPTIONEE'S REPRESENTATIONS.  In the event the Shares purchasable
pursuant to the exercise of the Option have not been registered under the
Securities Act of 1933, as amended, at the time the Option is exercised, the
Optionee shall, if required by the Company, concurrently with the exercise of
all or any portion the Option, deliver to the Company his or her Investment
Representation Statement in the form attached hereto as Exhibit B.

     4.  METHOD OF PAYMENT.  Payment of the Exercise Price shall be by any of
the following, or a combination thereof, at the election of the Optionee;
provided, however, that such exercise method does not then violate Applicable
Laws:

         (a)  cash;

         (b)  check;

         (c)  consideration received by the Company under a formal cashless
exercise program adopted by the Company in connection with the Plan; or

         (d)  surrender of other Shares which, (i) in the case of Shares
acquired upon exercise of an option, have been owned by the Optionee for more
than six (6) months on the date of surrender, and (ii) have a Fair Market
Value on the date of surrender equal to the aggregate Exercise Price of the
Exercised Shares.

     5.  RESTRICTIONS ON EXERCISE.  This Option may not be exercised if the
issuance of the Shares subject to the Option upon such exercise would
constitute a violation of Applicable Laws.

     6.  NON-TRANSFERABILITY OF OPTION.  This Option may not be transferred
in any manner otherwise than by will or by the laws of descent or
distribution and may be exercised during the lifetime of the Optionee only by
the Optionee. The terms of this Option shall be binding upon the executors,
administrators, heirs and successors of the Optionee.

     7.  TERM OF OPTION.  This Option may be exercised only within the term
set out in the Notice of Stock Option Grant, and may be exercised during such
term only in accordance with the Plan and the terms of this Option Agreement.

     8.  TAX CONSEQUENCES.  Set forth below is a brief summary as of the date
of this Option Agreement of some of the federal tax consequences of exercise
of this Option and disposition of the Shares. THIS SUMMARY IS NECESSARILY
INCOMPLETE, AND THE TAX LAWS AND

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REGULATIONS ARE SUBJECT TO CHANGE.  OPTIONEE SHOULD CONSULT A TAX ADVISER
BEFORE EXERCISING THIS OPTION OR DISPOSING OF THE SHARES.
           (a)   EXERCISE OF INCENTIVE STOCK OPTION.  If this Option
qualifies as an Incentive Stock Option, there will be no regular federal
income tax liability upon the exercise of the Option, although the excess, if
any, of the Fair Market Value of the Shares on the date of exercise over the
Exercise Price will be treated as an adjustment to the alternative minimum
tax for federal tax purposes and may subject the Optionee to the alternative
minimum tax in the year of exercise.

           (b)   EXERCISE OF NON-QUALIFIED STOCK OPTION.  There may be a
regular federal income tax liability upon the exercise of a Non-Qualified
Stock Option.  The Optionee wil be treated as having received compensation
income (taxable at ordinary income tax rates) equal to the excess, if any, of
the Fair Market Value of the Shares on the date of exercise over the Exercise
Price.  If Optionee is an Employee or a former Employee, the Company will be
required to withhold from Optionee's compensation or collect from Optionee
and pay to the applicable taxing authorities an amount in cash equal to a
percentage of this compensation income at the time of exercise, and may
refuse to honor the exercise and refuse to deliver Shares if such withholding
amounts are not delivered at the time of exercise.

           (c)  DISPOSITION OF SHARES.  In the case of a Non-Qualified Stock
Option, if Shares are held for at least one year, any gain realized on
disposition of the Shares will be treated as long-term capital gain for
federal income tax purposes.  In the case of an Incentive Stock Option, if
Shares transferred pursuant to the Option are held for at least one year
after receipt of the Shares and two years after the Date of Grant, any gain
realized on disposition of the Shares will also be treated as long-term
capital gain for federal income tax purposes.  If Shares purchased under an
Incentive Stock Option are disposed of within such periods, any gain realized
on such disposition wil be treated as compensation income (taxable at
ordinary income rates) to the extent of the difference between the Exercise
Price and the lesser of (i) the Fair Market Value of the Shares on the date
of exercise, or (ii) the sale price of the Shares.

      9.  LOCK-UP AGREEMENT.

           (a)   AGREEMENT.  Optionee, if requested by the Company and the
lead underwriter of any public offering of the Ordinary Shares or other
securities of the Company (the "Lead Underwriter"), hereby irrevocably agrees
not to sell, contract to sell, grant any option to purchase, transfer the
economic risk of ownership in, make any short sale for, pledge or otherwise
transfer or dispose of any interest in any Ordinary Shares or any securities
convertible into or exchangeable or exercisable for or any other rights to
purchase or acquire Ordinary Shares (except Ordinary Shares included in such
public offering or acquired on the public market after such offering) during
the 180-day period following the effective date of a registration statement
of the Company filed under the Securities Act of 1933, as amended, or such
shorter period of time as the Lead Underwriter shall specify.  Optionee
further agrees to sign such documents as may be requested by the Lead
Underwriter to effect the foregoing and agrees that the Company may impose
stop-transfer instructions with respect to such Ordinary Shares until the end
of such period. The Company and

                                       12
<PAGE>

Optionee acknowledge that each Lead Underwriter of a public offering of the
Company's stock, during the period of such offering and for the 180-day
period thereafter, is an intended beneficiary of this Section 9.

           (b)   PERMITTED TRANSFERS.  Notwithstanding the foregoing, Section
9(a) shall not prohibit Optionee from transferring any shares of Ordinary
Shares or securities convertible into or exchangeable or exercisable for the
Company's Ordinary Shares, to the extent such transfer is not otherwise
prohibited by this Agreement, either during Optionee's lifetime or on death
by will or intestacy to Optionee's immediate family or to a trust the
beneficiaries of which are exclusively the Optionee and/or a member or
members of Optionee's immediate family; provided, however, that prior to any
such transfer, each transferee shall execute an agreement pursuant to which
each transferee shall agree to receive and hold such securities subject to
the provisions hereof.  For the purposes of this subsection, the term
"immediate family" shall mean spouse, lineal descendant, father, mother,
brother or sister of the tranferor.

           (c)   NO AMENDMENT WITHOUT CONSENT OF UNDERWRITER.  During the
period from identification as a Lead Underwriter in connection with any
public offering of the Company's Ordinary Shares until the earlier of (i) the
expiration of the lock-up period specified in Section 9(a) in connection with
such offering or (ii) the abandonment of such offering by the Company and the
Lead Underwriter, the provisions of the Section 9 may not be amended or
waived except with the consent of the Lead Underwriter.

      10.  ENTIRE AGREEMENT; GOVERNING LAW.  This 1997 Plan and the Plan are
incorporated herein by reference.  The 1997 Plan, the Plan and this Option
Agreement constitute the entire agreement of the parties with respect to the
subject matter hereof and supersede in their entirety all prior undertaking
and agreements of the Company and the Optionee with respect to the subject
matter hereof, and may not be modified adversely to the Optionee's interest
except by means of a writing signed by the Company and Optionee.  This
agreement is governed by California law, except for that body of law
pertaining to conflicts of laws.

      11.  HEADINGS.  The captions used in this Agreement are inserted for
convenience and shall not be deemed a part of this Agreement for construction
or interpretation.

      12.  INTERPRETATION.  Any dispute regarding the interpretation of this
Option Agreement shall be submitted by the Optionee or by the Company
forthwith to the Board or the Administrator that administers the Plan, which
shall review such dispute at its next regular meeting.  The resolution of
such dispute by the Board or the Administrator shall be final and binding on
all persons.

                                             ACTIVCARD S.A., a corporation
                                             organized under the laws of France.

                                             By: /s/ [ILLEGIBLE]
                                                ------------------------------

                                       13

<PAGE>

                                                           Its:
                                                               -------------

OPTIONEE ACKNOWLEDGES AND AGREES THAT THE VESTING OF SHARES PURSUANT TO THE
OPTION HEREOF IS EARNED ONLY OPTIONEE'S CONTINUED EMPLOYMENT, CONSULTANCY OR
DIRECTORSHIP AT THE WILL OF THE COMPANY OR ACTIVCARD, INC. (NOT THROUGH THE
ACT OF BEING HIRED, BEING GRANTED THIS OPTION OR ACQUIRING SHARES HEREUNDER).
OPTIONEE FURTHER ACKNOWLEDGES AND AGREES THAT NOTHING IN THIS AGREEMENT, NOR
IN THE 1996 PLAN OR THE PLAN WHICH ARE INCORPORATED HEREIN BY REFERENCE,
SHALL CONFER UPON OPTIONEE ANY RIGHT WITH RESPECT TO CONTINUING AS AN
EMPLOYEE, CONSULTANT OR DIRECTOR OF THE COMPANY OR ACTIVCARD, INC., NOR SHALL
IT INTERFERE IN ANY WAY WITH THE COMPANY'S RIGHT OR ACTIVCARD, INC.'S RIGHT
TO TERMINATE OPTIONEE'S EMPLOYMENT AT ANY TIME, WITH OR WITHOUT CAUSE.

Optionee acknowledges receipt of a copy of the 1997 Plan and the Plan and
represents that he or she is familiar with the terms and provisions thereof,
and hereby accepts this Option Agreement subject to all of the terms and
provisions thereof. Optionee has reviewed the 1997 Plan, the Plan and this
Option Agreement in their entirety, has had an opportunity to obtain the
advise of counsel prior to executing this Option Agreement and fully
understands all provisions of the Option Agreement. Optionee hereby agrees
to accept as binding, conclusive and final all decisions or interpretations
of the Administrator upon any questions arising under the 1997 Plan, the
Plan or this Option Agreement. Optionee further agrees to notify the Company
upon any change in the residence address indicated below.

Dated:  August 15, 1997
      ----------------------
       Signed: /s/  Douglas Kernan
              -------------------------
                               Optionee

                              Residence Address:
                                   17259 DEER PARK RD
                              -------------------------------------------------
                                   Los Gatos, CA
                              -------------------------------------------------
                                              95032
                              -------------------------------------------------

                                       14<PAGE>

                                      SUBLEASE

     1.   PARTIES.  This Sublease, dated, for reference purposes only, February
 21, 2000, is made by and between HOMESPACE SERVICES, INC., a Florida
corporation formerly known as Amerinet Financial Systems, Inc. ("SUBLANDLORD")
and JATO COMMUNICATIONS, INC., a   Delaware corporation ("SUBTENANT").

     2.   PREMISES.  Sublandlord hereby subleases to Subtenant and Subtenant
hereby subleases from Sublandlord for the term, at the rental, and upon all of
the conditions set forth herein, that certain real property, including all
improvements therein, commonly known by the street address of 6200 South
Syracuse Way, Suite 400, Englewood, Colorado 80111, and generally described as
approximately 21,376 square feet located on the fourth floor of the building
located at 6200 South Syracuse Way, Englewood, Colorado, commonly referred to as
Carrara Place ("PREMISES"), as shown on the plans attached as Exhibit A to the
Master Lease (as defined in Section 3.1) and incorporated by this reference
herein.

     3.   MASTER LEASE.

          3.1  DESCRIPTION OF MASTER LEASE.  Sublandlord is the lessee of the
Premises by virtue of a lease, a copy of which and all amendments thereto is
attached hereto as Exhibit A and incorporated by this reference herein (the
"MASTER LEASE"), wherein PRENTISS PROPERTIES ACQUISITION PARTNERS, L.P., a
Delaware corporation, the successor in interest to Gateway Colorado Properties,
Inc., a California corporation, is the Landlord ("MASTER LANDLORD").

          3.2  SUBORDINATION OF SUBLEASE.  This Sublease is and shall be at all
times subject and subordinate to the Master Lease.

          3.3  INCORPORATION OF MASTER LEASE.  The terms, conditions and
respective obligations of Sublandlord and Subtenant to each other under this
Sublease shall be the terms and conditions of the Master Lease except for those
provisions of the

                                  Page 1 of 12
<PAGE>

Master Lease which are directly contradicted by this Sublease in which event the
terms of this Sublease document shall control over the Master Lease. Therefore,
for the purposes of this Sublease, wherever in the Master Lease the word
"LANDLORD" is used it shall be deemed to mean the Sublandlord herein and
wherever in the Master Lease the word "TENANT" is used it shall be deemed to
mean the Subtenant herein. Subtenant expressly acknowledges and agrees that,
notwithstanding anything to the contrary contained herein, Subtenant shall have
no rights under and the following provisions of the Master Lease shall not apply
to this Sublease: Section 30. OPTION TO RENEW and Section 31. RIGHT TO OFFER.
Further, Subtenant shall have no rights or obligations under Section 8.b.(2) of
the Master Lease to remove alterations or additions to the Premises made by
Sublandlord at the end of the term if such removal is requested by Master
Landlord; provided, however, that Subtenant shall have the obligation in
accordance with the provisions of Section 8.b.(2) to remove at the end of the
term any alterations or additions made to the Premises by Subtenant if requested
by Master Landlord. Sublandlord shall provide a copy of any such request by
Master Landlord to Subtenant to remove alterations or additions to the Premises
within five (5) days of receipt of such request. Subtenant shall cooperate with
Sublandlord with respect to any removal for which Sublandlord is responsible,
including, if necessary, vacating the Premises prior to the end of the term so
that Sublandlord can timely complete its removal obligation by the end of the
term. Further, if Subtenant must vacate the Premises in order to comply with
Master Landlord's request, Sublandlord shall provide at least thirty (30) days
prior written notice to Subtenant of the need for Subtenant to vacate the
Premises. If Subtenant vacates the Premises prior to the end of the term at the
request of Sublandlord, the Base Rent, the Parking Cost and the Excess Operating
Expenses (all as defined in Article 5 below) for the final month shall be
prorated based on the number of days of actual occupancy. Subtenant shall
indemnify Sublandlord against any loss or liability resulting from any delay by
Subtenant in surrendering the Premises, including, without limitation, any
claims made by any succeeding tenant founded on such delay.

                                  Page 2 of 12
<PAGE>

          3.4  SUBTENANT'S ASSUMED OBLIGATIONS.  During the term of this
Sublease and for all periods subsequent for obligations which have arisen prior
to the termination of this Sublease, Subtenant does hereby expressly assume and
agree to perform and comply with, for the benefit of Sublandlord and Master
Landlord, each and every obligation of Sublandlord under the Master Lease;
provided, however, that Subtenant's obligations with respect to payment of Base
Rent and Excess Operating Expenses (as defined in Section 5.3 and 5.4 below,
respectively) shall be as described herein and not as described in the Master
Lease except to the extent specifically referenced herein.  The obligations that
Subtenant has assumed hereunder are hereinafter referred to as the "SUBTENANT'S
ASSUMED OBLIGATIONS".  The obligations that Subtenant has not assumed hereunder
are hereinafter referred to as the "SUBLANDLORD'S REMAINING OBLIGATIONS".
Subtenant shall hold Sublandlord free and harmless from all liability,
judgments, costs, damages, claims or demands, including reasonable attorneys'
fees, arising out of Subtenant's failure to comply with or perform Subtenant's
Assumed Obligations.

          3.5  SUBLANDLORD'S PERFORMANCE CONDITIONED ON MASTER LANDLORD'S
PERFORMANCE.  Subtenant recognizes that Sublandlord is not in a position to
render any of the services or to perform any of the obligations required of
Master Landlord by the terms of the Master Lease.  Therefore, despite anything
to the contrary in this Sublease, Subtenant agrees that performance by
Sublandlord of its obligations under this Sublease is conditioned on performance
by the Master Landlord of its corresponding obligations under the Master Lease,
and Sublandlord will not be liable to Subtenant for any default of the Master
Landlord under the Master Lease.  Sublandlord shall use its best efforts to
obtain performance by Master Landlord and will pursue any remedies available in
the Master Lease in the event of a default by Master Landlord.

          3.6  LIMITATIONS ON SUBLANDLORD'S LIABILITY.  Subtenant will not have
any claim against Sublandlord based on the Master Landlord's failure or refusal
to comply with any of the provisions of the Master Lease unless that failure or
refusal is a result of Sublandlord's act or failure to act.  Sublandlord shall
promptly pursue any

                                  Page 3 of 12
<PAGE>

remedies available under the Master Lease to ensure Subtenant's quiet enjoyment.
Despite the Master Landlord's failure or refusal to comply with any of those
provisions of the Master Lease, this Sublease will remain in full force and
effect and Subtenant will pay the base rent and additional rent and all other
charges provided for in this Sublease without any abatement, deduction or
setoff. Except as expressly provided in this Sublease, Subtenant agrees to be
subject to, and bound by, all of the covenants, agreements, terms, provisions,
and conditions of the Master Lease, as though Subtenant was the Tenant under the
Master Lease.

     4.   TERM.  The term of this Sublease shall commence at 12:01 a.m. on
February 28, 2000 and end at 12:00 midnight on May 11, 2002 unless sooner
terminated pursuant to any provision hereof.

     5.   RENT.

          5.1  BASE RENT.  Subtenant shall pay to Sublandlord as Base Rent equal
monthly payments of $35,181.33 in advance, on the first day of each month of be
term hereof.  Subtenant shall pay Sublandlord upon the execution hereof
$35,181.33 as Base Rent for March 2000.  Base Rent for any period during the
term hereof which is for less than one month shall be a pro rata portion of the
monthly installment.  Also due on execution of the Sublease will be Base Rent
and Parking Costs for February 28 and 29 for a total of $2,440.52.  Sublandlord
shall continue to pay rent to Master Landlord in accordance with the terms of
the Master Lease.

          5.2  PARKING COST.  In addition to the Base Rent described in Section
4.1, Subtenant acknowledges and agrees that Subtenant shall pay to Sublandlord
the amounts required for the parking spaces as described in Section 22 of the
Master Lease (the "PARKING COST").

          5.3  EXCESS OPERATING EXPENSE.  Subtenant shall also pay to
Sublandlord, in addition to the Base Rent and the Parking Cost, the amount by
which the "OPERATING EXPENSES" as defined and calculated according to Section 4
of the Master Lease for each year, or portion thereof, during the term of this
Sublease

                                  Page 4 of 12
<PAGE>

exceeds the actual Operating Expenses for the Premises for calendar year 2000
(the "2000 OPERATING EXPENSES"). For calendar years 2001 and 2002, Sublandlord
shall notify Subtenant of the Master Landlord's estimate of the Sublandlord's
pro rata share of the Operating Expenses for such calendar years, and to the
extent that the estimated Operating Expenses allocable to Sublandlord for the
Premises is greater than the 2000 Operating Expenses for the Premises (the
"EXCESS OPERATING EXPENSES"), Subtenant shall pay to Sublandlord monthly in
advance at the rate of 1/12 of the Excess Operating Expenses on the same date
and at the same place as the Base Rent is payable, with an adjustment to be made
between the parties at a later date to the extent that actual Excess Operating
Expenses are greater or less than the Excess Operating Expenses calculated with
Landlord's estimate of the Operating Expenses. If, at the beginning of calendar
year 2001, 2000 Operating Expenses have not been finally determined, Subtenant
shall initially pay to Sublandlord in advance at the rate of 1/12 per month the
amount by which the estimated Operating Expenses for calendar year 2001 exceed
the estimated operating expenses for calendar year 2000 (the "Estimated 2000
Operating Expenses"). After Sublandlord has received the notice from Master
Landlord setting forth the actual 2000 Operating Expenses, Sublandlord shall
send a notice to Subtenant setting forth the determination of the actual amount
of the 2000 Operating Expenses and a calculation of any overpayment or
underpayment by Tenant of Excess Operating Expenses. If the 2000 Operating
Expenses are greater than the Estimated 2000 Operating Expenses so that
Subtenant has overpaid Excess Operating Expenses, Sublandlord shall credit any
excess amounts paid by Subtenant against the monthly Base Rent next payable by
Subtenant to Sublandlord hereunder. If the 2000 Operating Expenses are less than
the Estimated 2000 Operating Expenses so that Subtenant has underpaid the Excess
Operating Expenses, Subtenant shall pay the amount of the underpayment to
Sublandlord within ten (10) days of Subtenant's receipt of the notice from
Sublandlord setting forth the determination of the actual amount of 2000
Operating Expenses and the calculation of the amount of the underpayment. After
determination of the 2000 Operating Expenses, and the adjustment described
hereinafter, for the balance of the calendar year 2001, Subtenant shall pay to
Landlord in advance at the

                                  Page 5 of 12
<PAGE>

rate of 1/12 per month the amount by which the estimated Operating Expenses for
2001 exceed the 2000 Operating Expenses. Thereafter, if Sublandlord receives a
notice of adjustment from Master Landlord that indicates that the actual
Operating Expenses for a calendar year during the term are greater or less than
the estimated Operating Expenses so that Subtenant has underpaid or overpaid
Excess Operating Expenses, Sublandlord shall notify Subtenant of the amount of
the actual Operating Expenses, including a copy of Master Landlord's notice and
a calculation of any underpayment or overpayment by Subtenant of the Excess
Operating Expenses. If the actual Excess Operating Expenses are greater than
previously paid by Subtenant, Subtenant shall pay such amount to Sublandlord
within ten (10) days of Subtenant's receipt of the notice from Sublandlord. If
the actual Excess Operating Expenses are less than previously paid by Subtenant,
Sublandlord shall credit any excess amounts paid by Subtenant against the
monthly Base Rent next payable by Subtenant to Sublandlord hereunder or, if the
adjustment occurs after the last payment by Subtenant to Sublandlord of Base
Rent, Sublandlord shall pay to Subtenant the excess amounts paid by Subtenant
subject to offset for any amounts that may be owed by Subtenant to Sublandlord.

          5.4  RENT DEFINED.  All monetary obligations of Subtenant to
Sublandlord under the terms of this Sublease (except for the Security Deposit)
including, without limitation, the Parking Costs and the Excess Operating
Expenses, are deemed to be rent ("RENT").  Rent shall be payable in lawful money
of the United States to Sublandlord at the address stated herein or to such
other persons or at such other places as Sublandlord may designate in writing.

          5.5  INDEMNIFICATION BY SUBLANDLORD.  In the event of a default by
Sublandlord as tenant under the Master Lease which results in Subtenant being
required to pay rent directly to Master Landlord in order to be able to continue
to occupy the Premises, Sublandlord shall indemnify and hold harmless Subtenant
from the difference between the amount of the Base Rent payable by Sublandlord
to Master Lessor under the Master Lease and the Base Rent payable by Subtenant
to

                                  Page 6 of 12
<PAGE>

Sublandlord.  Sublandlord shall further indemnify Subtenant in such event
with respect to Operating Expenses up to the amount of the 2000 Operating
Expenses.

     6.   SECURITY DEPOSIT.  Subtenant shall deposit with Sublandlord upon
execution hereof $35,000.00 as security for Subtenant's obligations hereunder.
If Subtenant fails to pay Rent or other charges due hereunder, or otherwise
defaults with respect to any provision of this Sublease or the Master Lease,
Sublandlord may use, apply or retain all or any portion of said deposit for the
payment of any Rent or other charge in default or for the payment of any other
sum to which Sublandlord may become obligated by reason of Subtenant's default,
or to compensate Sublandlord for any loss or damage which Sublandlord may suffer
thereby.  If Sublandlord so uses or applies all or any portion of said deposit,
Subtenant shall within ten (10) days after written demand therefor forward to
Sublandlord an amount sufficient to restore said Deposit to the full amount
provided for herein and Subtenant's failure to do so shall be a material breach
of this Sublease.  Sublandlord shall not be required to keep said Deposit
separate from its general accounts.  If Subtenant performs all of Subtenant's
obligations hereunder, said Deposit, or so much thereof as has not therefor been
applied by Sublandlord, shall be returned, without payment of interest, to
Subtenant at the expiration of the term hereof after Subtenant has vacated the
Premises.  No trust relationship is created herein between Sublandlord and
Subtenant with respect to said Security Deposit.

     7.   USE.

          7.1  AGREED USE.  The Premises shall be used and occupied only for
general or executive offices, or both and for no other purpose.

          7.2  ACCEPTANCE OF PREMISES AND TENANT.  Subtenant acknowledges that:

               (a)  It has been advised to satisfy itself with respect to the
condition of the Premises (including but not limited to the electrical, HVAC and
fire

                                  Page 7 of 12
<PAGE>

sprinkler systems, security, environmental aspects, and compliance with
applicable laws), and their suitability for Subtenant's intended use.

               (b)  Subtenant has made such investigation as it deems necessary
with reference to such matters and assumes all responsibility therefor as the
same relate to its occupancy of the Premises.

               (c)  Neither Sublandlord, Sublandlord's agents, nor any broker
has made any oral or written representations or warranties with respect to said
matters other than as set forth in this Sublease.

               (d)  Subtenant accepts the Premises "AS IS" with all faults.

     8.   CONSENT OF MASTER LANDLORD REQUIRED UNDER MASTER LEASE.  Section 14 of
the Master Lease requires that Sublandlord obtain the consent of Master Landlord
to any subletting by Sublandlord.  Therefore, this Sublease shall not be
effective unless Master Landlord consents to this Subletting.  Further, this
Sublease shall only be effective if Master Landlord does not terminate the
Master Lease with respect to the Subleased Premises and recapture the Subleased
Premises within fourteen (14) days after Sublandlord provides Master Landlord
with a written notice of Sublandlord's intent to sublease the Subleased Premises
containing the information required by Section 4.a(2) and (3) of the Master
Lease.

     9.   MISCELLANEOUS

          9.1  CERTIFICATES.  Each party to this Sublease will, from time to
time as requested by the other party, on not less than ten (10) days prior
written notice, execute, acknowledge, and deliver to the other party a statement
in writing certifying that this Sublease is unmodified and in full force and
effect (or if there have been modifications that this Sublease is in full force
and effect as modified and stating the modifications).  That statement will
certify the dates to which base rent, additional rent, and any other charges
have been paid.  That statement will also state whether, to the knowledge of the
person signing the certificate, the other party is in default beyond any
applicable grace period provided in this Sublease in the performance of any of
its obligations under this Sublease.  If the other party is in default beyond
any

                                  Page 8 of 12
<PAGE>

applicable grace period, the statement will specify each default of which
the signer then has knowledge.  It is intended that this statement may be relied
on by others with whom the party requesting that certificate may be dealing.

          9.2  ASSIGNMENT OR SUBLEASING.  Subject to the rights of the Master
Landlord and the restrictions contained in the Master Lease in connection with a
transfer, Subtenant is not entitled to assign this Sublease or to sublet all or
any portion of the Subleased Premises without the prior written consent of
Sublandlord which consent may not be unreasonably withheld by Sublandlord.

          9.3  SEVERABILITY.  If any provision of this Sublease or the
application of any provision of this Sublease to any person or circumstance is,
to any extent, held to be invalid or unenforceable, the remainder of this
Sublease or the application of that provision to persons or circumstances other
than those as to which it is held invalid or unenforceable, will not be
affected, and each provision of this Sublease will be valid and be enforced to
the fullest extent permitted by law.

          9.4  ENTIRE AGREEMENT.  This Sublease constitutes the final, complete
and exclusive statement between the parties to this Sublease pertaining to the
Subleased Premises, supersedes all prior and contemporaneous understandings or
agreements of the parties, and is binding on and inures to the benefit of their
respective heirs, representatives, successors, and assigns.  No party has been
induced to enter into this Sublease by, nor is any party relying on, any
representation or warranty outside those expressly set forth in this Sublease.
Any agreement made after the date of this Sublease is ineffective to modify,
waive, release, terminate, or effect an abandonment of this Sublease, in whole
or in part, unless that agreement is in writing, is signed by the parties to
this Sublease, and specifically states that the agreement modifies this
Sublease.

                                  Page 9 of 12
<PAGE>

          9.5  CAPTIONS.  Captions to the sections in this Sublease are included
for convenience only and do not modify any of the terms of this Sublease.

          9.6  FURTHER ASSURANCES.  Each party to this Sublease will at its own
cost and expense execute and deliver such further documents and instruments and
will take such other actions as may be reasonably required or appropriate to
evidence or carry out the intent and purposes of this Sublease.

          9.7  GOVERNING LAW.  This Sublease will be governed by and in all
respects construed in accordance with the laws of the State of Colorado.

          9.8  CAPITALIZED TERMS.  All terms spelled with initial capital
letters in this Sublease that are not expressly defined in this Sublease will
have the respective meanings given such terms in the Master Lease.

          9.9  ATTORNEYS' FEES AND COSTS.  Subtenant shall reimburse
Sublandlord, within ten (10) days of demand therefor, for all of Sublandlord's
costs, including attorneys' fees, expended in connection with collecting any
monies due hereunder and not paid when due, and in connection with any other
default of Subtenant hereunder.  In the event of litigation hereunder, the
substantially prevailing party shall recover from the other party the
substantially prevailing party's costs and reasonable attorneys' fees, and such
costs and attorneys' fees shall be made a part of the judgment in such action.

          9.10 NOTICES.  No notice, request, demand, instruction, or other
document to be given hereunder to any Party shall be effective for any purpose
unless personally delivered, delivered by commercial overnight delivery service,
or sent by certified or registered mail, return receipt requested, to the
appropriate address set forth below, or transmitted by telecopier to the number
set forth below. For all purposes herein, notices shall be provided as follows:

                                  Page 10 of 12
<PAGE>

          If to the Sublandlord:   Homespace Services, Inc.
                                   Attn:  John Wright
                                   251 South Lake Avenue, Suite 1000
                                   Pasadena, CA 91101
                                   Telecopier: (626) 229-2859

          With copy to:            Henry P. Pramov, Jr., Esq.
                                   Rodi, Pollock, Pettker, Galbraith & Cahill
                                   A Law Corporation
                                   444 South Flower Street, Suite 1700
                                   Los Angeles, CA 90071-2901
                                   Telecopier. (213) 895-4921

          If to the Subtenant:     Jato Communications, Inc.
                                   Attn:  Dan Alonzi
                                   1099 18th Street, Suite 2200
                                   Denver, CO 80202
                                   Telecopier: ___________________________

          With copy to:            _______________________________________
                                   _______________________________________
                                   _______________________________________
                                   Telecopier: ___________________________

Notices that are mailed shall be deemed to have been given on the second day
following deposit of same in any United States Post Office mailbox in the state
to which the notice is addressed or on the third day following deposit in any
such post office box other than in the state to which the notice is addressed,
postage prepaid, addressed as set forth above.  Notices sent via commercial
overnight delivery service shall be deemed to have been given the next business
day after deposit with the commercial delivery service.  Notices that are
transmitted via telecopier shall be deemed to have been given the business day
transmitted, if transmitted before 3:00 p.m. recipient's time, and on the next
business day, if transmitted after 3:00 p.m. recipient's time, as evidenced by a
telecopier confirmation.  The addresses and telecopier numbers for the purposes
of this paragraph may be changed by giving written notice of such change in the
manner herein provided for giving notice.

          9.11 COPY OF NOTICES FROM MASTER LANDLORD.  Sublandlord shall provide
to Subtenant a copy of any written notice provided by Master Landlord to

                                  Page 11 of 12
<PAGE>

Sublandlord with respect to the Master Lease.  Except as otherwise may be
provided herein, Sublandlord shall provide such copy of any such notice to
Subtenant within ten (10) days of receipt thereof by Sublandlord.

          9.12 SUCCESSORS AND ASSIGNS.  Subject to the restrictions on transfer
contained in this Sublease, the covenants and agreements contained in this
Sublease shall bind and inure to the benefit of Sublandlord and Subtenant, their
respective successors and assigns, and all persons claiming by, through or under
them.

          9.13 REAL ESTATE COMMISSIONS.  Sublandlord and Subtenant represent
and warrant to each other that neither party has used the services of any
real estate broker, salesperson or finder in connection with subleasing of
the Subleased Premises, other than the services of The Staubach Company
("BROKERS"). Sublandlord shall pay all costs, fees and commissions owing to
Brokers in accordance with Sublandlord's written agreement with Brokers.

     "SUBLANDLORD"                           "SUBTENANT"

     HOMESPACE SERVICES, INC., a             JATO COMMUNICATIONS, INC.,
     Florida corporation formerly known      a ______________ corporation
     as Amerinet Financial Systems, Inc.

     By:  /s/ John R. Wright, Jr.            By:  /s/ William D. Myers
        --------------------------------        --------------------------------
     Name:  John R. Wright, Jr.              Name:  William D. Myers
          ------------------------------          ------------------------------
     Its:  S.V.P. Finance                    Its:  C.F.O.
         -------------------------------         -------------------------------

     By:                                     By:
        --------------------------------        --------------------------------
     Name:                                   Name:
          ------------------------------          ------------------------------
     Its:                                    Its:
         -------------------------------         -------------------------------

                                  Page 12 of 12

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