Document:

Exhibit 10.5

LANDLORD:                            NEW WORLD PARTNERS JOINT VENTURE
                                     UMBER FOUR, a Florida general partnership
                                     c/o Codina Real Estate Management, Inc.
                                     8323 N.W. 12th Street, Suite 115
                                     Miami, Florida  33126

TENANT:                              99CENT STUFF-BEACON WAREHOUSE, LLC, a
                                     Florida limited liability company
                                     1801 Clint Moore Road, Suite 217
                                     Boca Raton, Florida  33487

DATE OF EXECUTION:                                        , 1999
                                     ---------------------------

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

                           LEASE-INDUSTRIAL COMMERCIAL

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

<PAGE>

                                  LEASE SUMMARY

         The following is a summary of basic lease provisions with respect to
the Lease. It is an integral part of the Lease, and terms defined or dollar
amounts specified in this Summary shall have the meanings or amounts as stated,
unless expanded upon in the text of the Lease and its Exhibits, which are
attached to and made a part of this Summary.
<TABLE>
     <S>                                       <C>
     1.    Date of Lease Execution:            ________________________, 1999
           -----------------------

     2.    "Landlord":                         New World Partners Joint Venture Number Four
           ----------

     3.    Landlord's Address:                 c/o Codina Real Estate Management, Inc.
           ------------------                  8323 N.W. 12th Street, Suite 115
                                               Miami, Florida 33126
                                               Attention:  Property Manager

     4.    "Tenant":                           99Cent Stuff-Beacon Warehouse, LLC
            ------

     5.    Tenant's Address:                   1801 Clint Moore Road, Suite 217
           ----------------                    Boca Raton, Florida  33487

                                               with a courtesy copy of default notices to:

                                               Ronald M. Gache, Esq.
                                               Broad and Cassel
                                               400 Australian Avenue South
                                               Suite 500
                                               West Palm Beach, Florida  33401

     6.    "Guarantor":                        Raymond Zimmerman
           -----------

     7.    Guarantor's Address:                1801 Clint Moore Road, Suite 217
           -------------------                 Boca Raton, Florida  33487

     8.    Premises (section 1.1):             8500 N.W. 17th Street, Miami, Florida  33126,
           ---------------------               as shown on Exhibit "A"

     9.    Building No.:                       21
           ------------

     10.   Gross Rentable Area of
           ----------------------
           Premises (section 1.1):             Approximately 28,573 rentable square feet
           ----------------------              which includes no office space as of the date
                                               hereof)
     11.   Gross Rentable Area of
           ----------------------
           Building (section 1.1):             Approximately 78,671 rentable square feet
           ----------------------

     12.   Tenant's Proportionate
           ----------------------
           Share (section 2.3):                36.32%
           -------------------

     13.   Permitted Use of
           ----------------
           Premises (section 3.1):             Commercial warehouse, with incidental general
           ----------------------              office use for discount retail company
</TABLE>

                                      -i-
<PAGE>
<TABLE>
     <S>                                       <C>
     14.   Term of Lease (section 1.1):        Approximately five (5) years
           ---------------------------         "Commencement Date": Fourteen
                                               (14) days after the date that
                                               Landlord delivers possession of
                                               the Premises to Tenant
                                               "Expiration Date": Five (5) years
                                               after the Commencement Date, plus
                                               (if the Commencement Date is not
                                               the first day of a calendar
                                               month), any partial calendar
                                               month in which the Commencement
                                               Date falls, so that the
                                               Expiration Date will be on the
                                               last day of a calendar month

     15.     Option to Renew (Rider 1):        One (1) term of sixty-four (64) months, at market rates
             -------------------------

     16.   "Minimum Rent" (section 2.2):
           ----------------------------
</TABLE>

<TABLE>
<CAPTION>
                                   ANNUAL MINIMUM RENT          MONTHLY PAYMENT
              LEASE YEAR           RATE PER SQUARE FOOT           (PLUS SALES TAX)
              ----------           --------------------         ------------------
              <S>                  <C>                          <C>
                   1                     $7.25                  $17,262.85
                   2                     $7.47                  $17,786.69
                   3                     $7.69                  $18,310.53
                   4                     $7.92                  $18,858.18
                   5                     $8.16                  $19,429.64
</TABLE>

<TABLE>
     <S>                                       <C>
     17.   "Rent":                             Rent shall mean the Minimum Rent
           ------                              and all other sums due and
                                               payable by Tenant under the
                                               Lease, including, but not limited
                                               to, Tenant's proportionate share
                                               of Increased Operating Costs and
                                               Increased Taxes. For purposes of
                                               the Lease, all sums due from
                                               Tenant shall be deemed to be
                                               "rent" whether or not
                                               specifically designated as such.

     18.   Prepaid Rent:                       $18,384.94 (includes sales tax)
           ------------                        (due upon execution of Lease; to
                                               be applied to first full month
                                               Minimum Rent is due)

     19.   Security Deposit (section 2.6):     $22,189.76 (excludes sales tax)
           ------------------------------      (paid in connection with the
                                               Retail Lease, as defined in the
                                               Addendum to Lease)

     20.   Cost Pass-Throughs (section 2.3):   Operating Costs, Taxes
           --------------------------------

     21.   Base Year (section 2.3):            1999
           -----------------------

     22.   Comprehensive General
           Liability Insurance (section 6.1):  $1,000,000.00
           ---------------------------------

     23.   No. of Parking Spaces               Thirty-seven (37) unassigned
           ---------------------
           (section 11.1):
           --------------

     24.   Broker(s) (section 13.12):          Codina Realty Services, Inc.oOncor
           -------------------------           International; Terranova Corporation
</TABLE>

                                      -ii-
<PAGE>
<TABLE>
     <S>                                       <C>
     25.   Tenant Improvements
           -------------------
           (Exhibit "D"):                      As-is, plus an allowance of $137,150.40  for
           ------------                        improvements to be made within one (1) year

     26.   Right of First Refusal (Addendum
           --------------------------------
           to Lease:                           Right of first refusal on contiguous space
           --------
</TABLE>

                                     -iii-

<PAGE>

                  THIS LEASE (the "Lease"), dated the _____ day of _____________
________________, 1999, is made between New World Partners Joint Venture NUMBER
FOUR, a Florida general partnership (the "Landlord"), and 99CENT STUFF-BEACON
WAREHOUSE, LLC, a Florida limited liability company (the "Tenant").

                                ARTICLE I. TERM.
                                ---------  ----

         1.1 Grant; Term. In consideration of the performance by the Tenant of
its obligations under this Lease, the Landlord leases to the Tenant, and the
Tenant leases from the Landlord, for the Term, the "Premises," which Premises
are shown outlined on the floor plan attached hereto and made a part hereof as
Exhibit "A." The Premises are located in that certain building in Beacon Centre
(the "Building"), located in Dade County, Florida, as more particularly
described in Exhibit "B," attached hereto and made a part hereof. The gross
rentable area of the Premises and Building are approximately as shown on the
Lease Summary. Upon completion of the Premises pursuant to Exhibit "D" to this
Lease, Landlord may, at its expense, direct its architect to determine the
square footage of the Premises as actually constructed and certify as to same to
both Landlord and Tenant. In the event that the rentable area of the Premises as
determined by Landlord's architect is greater or less than the amount specified
in the Lease Summary, the rentable area of the Premises shall be adjusted to
equal the amount as so determined, and the Minimum Rent and any other amounts
specified in this Lease as a function of the rentable area of the Premises shall
be adjusted proportionately.

                  The "Term" of the Lease is the period from the Commencement
Date as specified in the Lease Summary, through the Expiration Date, as
specified in the Lease Summary. If the Premises are ready for occupancy prior to
the Commencement Date, then Tenant shall take occupancy on such date and
Tenant's obligations to pay Minimum Rent and all other charges shall commence on
such date. If Landlord cannot deliver possession of the Premises to Tenant on
the Commencement Date, this Lease shall not be void or voidable, nor shall
Landlord be liable to Tenant for any loss or damage resulting therefrom, but in
that event, this Lease shall in all ways remain in full force and effect except
that Minimum Rent and other charges shall be waived for the period between the
Commencement Date and the time when Landlord can deliver possession; provided,
however, if delivery of possession is delayed more than ninety (90) days past
the scheduled Commencement Date, Tenant may terminate this Lease upon fifteen
(15) days' written notice to Landlord, whereupon both parties shall be relieved
of all further obligations hereunder. Notwithstanding the foregoing, if delivery
of possession is delayed due to any act or omission of Tenant, then the
Commencement Date shall be the date Landlord would have delivered possession,
but for Tenant's delay.

                  The Landlord shall have no construction or improvement
obligations with respect to the Premises unless expressly set forth in a work
letter agreement, which, if executed by Landlord and Tenant, shall be
incorporated as an exhibit to this Lease. Upon the expiration of five (5)
business days following the Commencement Date, the Premises shall be
conclusively deemed to be accepted by Tenant unless Tenant shall have given
Landlord written notice of any contended defects in the Premises.

                                ARTICLE II. RENT.
                                ----------  ----

         2.1 Covenant to Pay. The Tenant shall pay to Landlord all sums due
hereunder from time to time from the Commencement Date without prior demand,
together with all applicable Florida sales tax thereon; however, unless
otherwise provided in this Lease, payments other than Tenant's regular monthly
payments of Minimum Rent, Operating Costs, and Taxes shall be payable by Tenant
to Landlord within five (5) days following demand. All rent or other charges
that are required to be paid by Tenant to Landlord shall be payable at
Landlord's address indicated on the Lease Summary. Minimum Rent and Additional
Rent for any "Lease Year" consisting of less than twelve (12) months shall be
prorated on a per diem basis, based upon a period of 365 days. "Lease Year"
means the twelve (12) full calendar months commencing on the Commencement Date.
However, the final Lease Year may contain less than twelve (12) months due to
expiration or sooner termination of the Term. The Tenant agrees that its
covenant to pay rent and all other sums under this Lease is an independent
covenant and that all such amounts are payable without counterclaim, set-off,
deduction, abatement, or reduction whatsoever, except as expressly provided for
in this Lease.

<PAGE>
         2.2 Minimum Rent. Subject to any escalation which may be provided for
in this Lease, the Tenant shall pay Minimum Rent for the Term in the initial
amount specified in the Lease Summary, which, except for the first installment,
shall be payable throughout the Term in equal monthly installments in advance on
the first day of each calendar month of each year of the Term, such monthly
installments to be in the amounts (subject to escalation) specified in the Lease
Summary. The first monthly installment of Minimum Rent shall be due on the date
of this Lease. The Minimum Rent described above shall be adjusted at the
beginning of the second and each succeeding Lease Year during the Term of this
Lease as provided in the Lease Summary.

         2.3 Operating Costs; Taxes.

                  (a) The Tenant shall pay to the Landlord the Tenant's
proportionate share of the amount by which the annual Operating Costs, as
hereinafter defined, for each calendar year exceed the Operating Costs incurred
during the Base Year specified in the Lease Summary. Such excess is referred to
for purposes of this Lease as the "Increased Operating Costs." Tenant's
obligation to pay its proportionate share of Increased Operating Costs shall
commence as of the beginning of the first full calendar year following the Base
Year. The amount of Increased Operating Costs payable to the Landlord may be
estimated by the Landlord for such period as the Landlord determines from time
to time (not to exceed twelve (12) months), and the Tenant agrees to pay to the
Landlord the amounts so estimated in equal installments, in advance, on the
first day of each month during such period. Notwithstanding the foregoing, when
bills for all or any portion of Increased Operating Costs so estimated are
actually received by Landlord, the Landlord may bill the Tenant for the Tenant's
proportionate share thereof, less any amount previously paid by Tenant to
Landlord on account of such item(s) by way of estimated Increased Operating
Costs payments.

                  (b) Within a reasonable period of time after the end of the
period for which estimated payments have been made, the Landlord shall submit to
the Tenant a statement from the Landlord setting forth the actual amounts
payable by the Tenant based on actual costs. If the amount the Tenant has paid
based on estimates is less than the amount due based on actual costs, the Tenant
shall pay such deficiency within five (5) days after submission of such
statement. If the amount paid by the Tenant is greater than the amount actually
due, the excess may be retained by the Landlord to be credited and applied by
the Landlord to the next due installments of the Tenant's proportionate share of
Increased Operating Costs, or as to the final Lease Year, provided Tenant is not
in default, Landlord will refund such excess to Tenant.

                  (c) For purposes of this Lease, Tenant's proportionate share
shall be a fraction, the numerator of which is the gross rentable area of the
Premises, and the denominator of which is the gross rentable area of the
Building (which is as set forth in the Lease Summary). Tenant's proportionate
share is as set forth in the Lease Summary. The term "Operating Costs" shall
mean any amounts paid or payable whether by the Landlord or by others on behalf
of the Landlord, arising out of Landlord's maintenance, operation, repair,
replacement (if such replacement increases operating efficiency) and
administration of the Building and Common Areas, including, without limitation:
(i) the cost of insurance which the Landlord is obligated or permitted to obtain
under this Lease and any deductible amount applicable to any claim made by the
Landlord under such insurance; (ii) the cost of security, (iii) the cost of
landscaping, and (iv) a reasonable management fee.

                  (d) In addition to Tenant's proportionate share of Operating
Costs, the Tenant shall pay to the Landlord the Tenant's proportionate share of
the amount by which the annual Taxes, as hereinafter defined, for each calendar
year exceed the Taxes incurred during the Base Year specified in the Lease
Summary. Such excess is referred to for purposes of this Lease as the "Increased
Taxes." Tenant's obligation to pay its proportionate share of Increased Taxes
shall commence as of the beginning of the first full calendar year following the
Base Year. The amount of Increased Taxes payable to the Landlord may be
estimated by the Landlord for such period as the Landlord determines from time
to time (not to exceed twelve (12) months), and the Tenant agrees to pay to the
Landlord the amounts so estimated in equal installments, in advance, on the
first day of each month during such period. Notwithstanding the foregoing, when
bills for all or any portion of Increased Taxes so estimated are actually
received by Landlord, the Landlord may bill the Tenant for the Tenant's
proportionate share thereof, less any amount previously paid by Tenant to
Landlord on account of such item(s) by way of estimated Increased Taxes
payments.

                                      -2-
<PAGE>
                  (e) Within a reasonable period of time after the end of the
period for which estimated payments have been made, the Landlord shall submit to
the Tenant a statement from the Landlord setting forth the actual amounts
payable by the Tenant based on actual Taxes. If the amount the Tenant has paid
based on estimates is less than the amount due based on actual Taxes, the Tenant
shall pay such deficiency within five (5) days after submission of such
statement. If the amount paid by the Tenant is greater than the amount actually
due, the excess may be retained by the Landlord to be credited and applied by
the Landlord to the next due installments of the Tenant's proportionate share of
Increased Taxes, or as to the final Lease Year, provided Tenant is not in
default, Landlord will refund such excess to Tenant.

                  (f) Tenant's proportionate share shall be a fraction, the
numerator of which is the gross rentable area of the Premises, and the
denominator of which is the gross rentable area of the Building. The term
"Taxes" shall mean the cost of all real estate, personal property and other ad
valorem taxes, and any other levies, charges, local improvement rates, and
assessments whatsoever assessed or charged against the Building and Common
Areas, the equipment and improvements therein contained, and including any
amounts assessed or charged in substitution for or in lieu of any such taxes,
excluding only income or capital gains taxes imposed upon Landlord, and
including all costs associated with the appeal of any assessment on Taxes.

                  (g) The Tenant's proportionate share of actual Increased
Operating Costs and Increased Taxes for the final estimate period of the Term of
this Lease shall be due and payable even though it may not be finally calculated
until after the expiration of the Term. Accordingly, Landlord shall have the
right to continue to hold Tenant's security deposit following expiration of the
Term until Tenant's share of actual Increased Operating Costs and Increased
Taxes has been paid.

         2.4 Payment of Personal Property Taxes. Tenant shall pay, when due, all
taxes attributable to the personal property, trade fixtures, business,
occupancy, or sales of Tenant or any other occupant of the Premises and to the
use of the Building by Tenant or such other occupant.

         2.5 Rent Past Due. If any payment due from Tenant shall be overdue, a
late charge of five (5%) percent of the delinquent sum may be charged by
Landlord. If any payment due from Tenant shall remain overdue for more than
fifteen (15) days, an additional late charge in an amount equal to the lesser of
the highest rate permitted by law or one and one-half (1 1/2%) percent per month
(eighteen (18%) percent per annum) of the delinquent amount may be charged by
Landlord, such charge to be computed for the entire period for which the amount
is overdue and which shall be in addition to and not in lieu of the five (5%)
percent late charge or any other remedy available to Landlord.

         2.6 Security Deposit. The Landlord acknowledges receipt of a security
deposit in the amount specified on the Lease Summary to be held by the Landlord,
without any liability for interest thereon, as security for the performance by
the Tenant of all its obligations under this Lease. Landlord shall be entitled
to commingle the security deposit with Landlord's other funds. If Tenant
defaults in any of its obligations under this Lease, the Landlord may at its
option, but without prejudice to any other rights which the Landlord may have,
apply all or part of the security deposit to compensate the Landlord for any
loss, damage, or expense sustained by the Landlord as a result of such default.
If all or any part of the security deposit is so applied, the Tenant shall
restore the security deposit to its original amount on demand of the Landlord.
Subject to the provisions of section 2.3, within thirty (30) days following
termination of this Lease, if the Tenant is not then in default, the security
deposit will be returned by the Landlord to the Tenant.

                                      -3-
<PAGE>

         2.7 Landlord's Lien. To secure the payment of all rent and other sums
of money due and to become due hereunder and the faithful performance of this
Lease by Tenant, Tenant hereby gives to Landlord an express first and prior
contract lien and security interest on all property now or hereafter acquired
(including fixtures, equipment, chattels, and merchandise) which may be placed
in the Premises and also upon all proceeds of any insurance which may accrue to
Tenant by reason of destruction of or damage to any such property. Such property
shall not be removed therefrom without the written consent of Landlord until all
arrearages in rental and other sums of money then due to Landlord hereunder
shall first have been paid. All exemption laws are hereby waived in favor of
said lien and security interest. This lien and security interest is given in
addition to Landlord's statutory lien and shall be cumulative thereto. Landlord
shall, in addition to all of its rights hereunder, also have all of the rights
and remedies of a secured party under the Uniform Commercial Code as adopted in
the State in which the Premises is located. To the extent permitted by law, this
Lease shall constitute a security agreement under Article 9 of the Florida
Uniform Commercial Code. Notwithstanding the foregoing, Landlord agrees to
subordinate its lien to a bona fide institutional lender providing acquisition
financing or lease financing for Tenant's furniture, fixtures, and equipment, so
that Landlord will have a second lien on such furniture, fixtures, and
equipment.

                          ARTICLE III. USE OF PREMISES.
                          -----------  ---------------

         3.1 Permitted Use. The Premises shall be used and occupied only for the
use specified in the Lease Summary. Tenant shall carry on its business on the
Premises in a reputable manner and shall not do, omit, permit, or suffer to be
done or exist upon the Premises anything which shall result in a nuisance,
hazard, or bring about a breach of any provision of this Lease or any applicable
municipal or other governmental law or regulation. Tenant shall observe all
reasonable rules and regulations established by Landlord from time to time for
the Building. The rules and regulations in effect as of the date hereof are
attached to and made a part of this Lease as Exhibit "C." The names for the
Building and the business park of which the Building is a part, which the
Landlord may from time to time adopt, and every name or mark adopted by the
Landlord in connection with the Building shall be used by the Tenant only in
association with the business carried on in the Premises during the Term and the
Tenant's use thereof shall be subject to such regulation as the Landlord may
from time to time impose.

         3.2 Compliance with Laws. The Premises shall be used and occupied in a
safe, careful, and proper manner so as not to contravene any present or future
governmental or quasigovernmental laws, regulations, or orders, or the
requirements of the Landlord's or Tenant's insurers. If due to the Tenant's use
of the Premises, repairs, improvements, or alterations are necessary to comply
with any of the foregoing, the Tenant shall pay the entire cost thereof.

         3.3 Signs. Except with the prior written consent of the Landlord, the
Tenant shall not erect, install, display, inscribe, paint, or affix any signs,
lettering, or advertising medium upon or above any exterior portion of the
Premises. Any exterior signage shall be installed by Tenant at Tenant's expense,
and such signage shall comply with Landlord's sign criteria as adopted from time
to time. The design and specification of such signage (including camera-ready
artwork) shall be submitted for Landlord's prior written approval.

         3.4 Environmental Provisions. Tenant shall give written notice to
Landlord at least seven (7) days in advance of any production, generation,
handling, storage, treatment, transportation, disposal, release, or removal of
hazardous waste or hazardous substances from or on the Premises. Tenant warrants
and represents that it will not use or employ the Landlord's and/or the Building
property, facilities, equipment, or services to handle, transport, store, treat,
or dispose of any hazardous waste or hazardous substance, whether or not it was
generated or produced on the Premises; and, Tenant further warrants and
represents that any activity on or relating to the Premises shall be conducted
in full compliance with all applicable laws. Tenant agrees to defend, indemnify,
and hold harmless Landlord against any and all claims, costs, expenses, damages,
liability, and the like, which Landlord may hereafter be liable for, suffer,
incur, or pay arising under any applicable laws and resulting from or arising
out of any breach of the warranties and representations contained in this
section 3.4, or out of any act, activity, or violation of any applicable laws on
the part of Tenant, its agents, employees, or assigns. Tenant's liability under
this section 3.4 shall survive the expiration or any termination of this Lease.

                                      -4-
<PAGE>
                          ARTICLE IV. ACCESS AND ENTRY.
                          ----------  ----------------

         4.1 Right of Examination. The Landlord shall be entitled at all
reasonable times and upon reasonable notice (but no notice is required in
emergencies) to enter the Premises to examine them; to make such repairs,
alterations, or improvements thereto as the Landlord considers necessary or
reasonably desirable; to have access to underfloor facilities and access panels
to mechanical shafts and to check, calibrate, adjust, and balance controls and
other parts of the heating, air conditioning, ventilating, and climate control
systems. The Landlord reserves to itself the right to install, maintain, use,
and repair pipes, ducts, conduits, vents, wires, and other installations leading
in, through, over, or under the Premises and for this purpose, the Landlord may
take all material into and upon the Premises which is required therefor. The
Tenant shall not unduly obstruct any pipes, conduits, or mechanical or other
electrical equipment so as to prevent reasonable access thereto. The Landlord
reserves the right to use all exterior walls and roof area. The Landlord shall
exercise its rights under this section, to the extent possible in the
circumstances, in such manner so as to minimize interference with the Tenant's
use and enjoyment of the Premises.

         4.2 Right to Show Premises. The Landlord and its agents have the right
to enter the Premises at all reasonable times and upon reasonable notice to show
them to prospective purchasers, lenders, or anyone having a prospective interest
in the Building, and, during the last six months of the Term (or the last six
(6) months of any renewal term if this Lease is renewed), to show them to
prospective tenants.

                ARTICLE V. MAINTENANCE, REPAIRS, AND ALTERATIONS.
                ---------  -------------------------------------

         5.1 Maintenance and Repairs by Landlord. The Landlord covenants to keep
the following in good repair as a prudent owner: (i) the structure of the
Building including exterior walls and roofs; and (ii) the entrances, sidewalks,
corridors, parking areas and other facilities from time to time comprising the
Common Areas. The cost of such maintenance and repairs shall be included in
Operating Costs. So long as the Landlord is acting in good faith, the Landlord
shall not be responsible for any damages caused to the Tenant by reason of
failure of any equipment or facilities serving the Building or delays in the
performance of any work for which the Landlord is responsible pursuant to this
Lease. Notwithstanding any other provisions of this Lease, if any part of the
Building is damaged or destroyed or requires repair, replacement, or alteration
as a result of the act or omission of the Tenant, its employees, agents,
invitees, licensees, or contractors, Landlord shall have the right to perform
same and the cost of such repairs, replacement, or alterations shall be paid by
the Tenant to the Landlord upon demand. In addition, if, in an emergency, it
shall become necessary to make promptly any repairs or replacements required to
be made by Tenant, Landlord may re-enter the Premises and proceed forthwith to
have the repairs or replacements made and pay the costs thereof. Upon demand,
Tenant shall reimburse Landlord for the cost of making the repairs.

         5.2 Maintenance and Repairs by Tenant. The Tenant shall, at its sole
cost, repair and maintain the Premises including, but not limited to, base
building mechanical and electrical systems, all to a standard consistent with a
first class building, with the exception only of those repairs which are the
obligation of the Landlord pursuant to this Lease. Without limiting the
generality of the foregoing, Tenant is specifically required to maintain and
make repairs to (i) the portion of any pipes, lines, ducts, wires, or conduits
contained within the Premises; (ii) windows, plate glass, doors, and any
fixtures or appurtenances composed of glass; (iii) Tenant's sign; (iv) any
heating or air conditioning equipment serving the Premises ("HVAC") (which shall
include, without limitation, a preventive maintenance HVAC service contract,
which service contract shall be entered into between Tenant and one of
Landlord's approved HVAC contractors. Such service contract shall include,
without limitation, preventive HVAC maintenance no less than quarterly); (v) the
Premises or the Building when repairs to the same are necessitated by any act or
omission of Tenant, or the failure of Tenant to perform its obligations under
this Lease. All repair and maintenance performed by the Tenant in the Premises
shall be performed by contractors or workmen designated or approved by the
Landlord. At the expiration or earlier termination of the Term, the Tenant shall
surrender the Premises to the Landlord in as good condition and repair as the
Tenant is required to maintain the Premises throughout the Term. Tenant shall
also furnish, maintain, and replace all electric light bulbs, tubes, and tube
casings located within or serving the Premises and Tenant's signage, all at
Tenant's sole cost and expense. Landlord will assign to Tenant the benefit of
any manufacturer's warranties with respect to the mechanical, electrical, and
plumbing systems.

                                      -5-
<PAGE>
         5.3 Approval of Tenant's Alterations. No alterations (including,
without limitation, repairs, replacements, additions, or modifications to the
Premises by Tenant), other than minor or cosmetic alterations which are interior
and nonstructural, shall be made to the Premises without the Landlord's written
approval, which, as to exterior or structural alterations may be withheld in
Landlord's sole discretion. Any alterations by Tenant shall be performed at the
sole cost of the Tenant, by contractors and workmen approved by the Landlord, in
a good and workmanlike manner, and in accordance with all applicable laws and
regulations.

         5.4 Removal of Improvements and Fixtures. All leasehold improvements
(other than unattached, movable trade fixtures which can be removed without
damage to the Premises) shall at the expiration or earlier termination of this
Lease become the Landlord's property. The Tenant may, during the Term, in the
usual course of its business, remove its trade fixtures, provided that the
Tenant is not in default under this Lease; and the Tenant shall, at the
expiration or earlier termination of the Term, at its sole cost, remove such of
the leasehold improvements (except for improvements installed by Landlord prior
to the Commencement Date) and trade fixtures in the Premises as the Landlord
shall require to be removed and restore the Premises to the condition existing
prior to such removal. The Tenant shall at its own expense repair any damage
caused to the Building by such removal. If the Tenant does not remove its trade
fixtures at the expiration or earlier termination of the Term, the trade
fixtures shall, at the option of the Landlord, become the property of the
Landlord and may be removed from the Premises and sold or disposed of by the
Landlord in such manner as it deems advisable without any accounting to Tenant.

         5.5 Liens. The Tenant shall promptly pay for all materials supplied and
work done in respect of the Premises so as to ensure that no lien is recorded
against any portion of the Building or against the Landlord's or Tenant's
interest therein. If a lien is so recorded, the Tenant shall discharge it
promptly by payment or bonding. If any such lien against the Building or
Landlord's interest therein is recorded and not discharged by Tenant as above
required within fifteen (15) days following recording, the Landlord shall have
the right to remove such lien by bonding or payment and the cost thereof shall
be paid immediately from Tenant to Landlord. Landlord and Tenant expressly agree
and acknowledge that no interest of Landlord in the Premises or the Building
shall be subject to any lien for improvements made by Tenant in or for the
Premises, and the Landlord shall not be liable for any lien for any improvements
made by Tenant, such liability being expressly prohibited by the terms of this
Lease. In accordance with applicable laws of the State of Florida, Landlord has
filed in the public records of Dade County, Florida, a public notice containing
a true and correct copy of this paragraph, and Tenant hereby agrees to inform
all contractors and materialmen performing work in or for or supplying materials
to the Premises of the existence of said notice.

         5.6 Utilities. The Tenant shall pay to the Landlord, or as the Landlord
directs, all gas, electricity, water, and other utility charges applicable to
the Premises as separately metered or, if not so metered, as part of Tenant's
proportionate share of Increased Operating Costs. The Tenant shall pay the cost
of janitorial, garbage removal, and trash removal services for the Premises and
the cost of heating, ventilating, and air conditioning the Premises.

                                      -6-
<PAGE>
                      ARTICLE VI. INSURANCE AND INDEMNITY.
                      ----------  -----------------------

         6.1 Tenant's Insurance. The Tenant shall, throughout the Term (and any
other period when Tenant is in possession of the Premises), maintain at its sole
cost the following insurance:

                  (A) All risks property insurance, naming the Tenant and the
Landlord as insured parties, containing a waiver of subrogation rights which the
Tenant's insurers may have against the Landlord and against those for whom the
Landlord is in law responsible including, without limitation, its directors,
officers, agents, and employees, and (except with respect to the Tenant's
chattels) incorporating a standard New York mortgagee endorsement (without
contribution). Such insurance shall insure property of every kind owned by the
Tenant in an amount not less than the full replacement cost thereof (new), with
such cost to be adjusted no less than annually.

                  (B) Comprehensive general liability insurance. Such policy
shall contain inclusive limits per occurrence of not less than the amount
specified in the Lease Summary; provide for cross liability; and include the
Landlord and any mortgagee of Landlord as additional insureds.

                  (C) Worker's compensation and employer's liability insurance
in compliance with applicable legal requirements.

                  (D) Any other form of insurance which the Tenant or the
Landlord, acting reasonably, requires from time to time in form, in amounts, and
for risks against which a prudent tenant would insure.

                  All policies referred to above shall: (i) be taken out with
insurers licensed to do business in Florida and reasonably acceptable to the
Landlord; (ii) be in a form reasonably satisfactory to the Landlord; (iii) be
non-contributing with, and shall apply only as primary and not as excess to any
other insurance available to the Landlord or any mortgagee of Landlord; (iv)
contain an undertaking by the insurers to notify the Landlord by certified mail
not less than thirty (30) days prior to any material change, cancellation, or
termination, and (v) with respect to subsection (A), contain replacement cost,
demolition cost, and increased cost of construction endorsements. Certificates
of insurance on the Landlord's standard form or, if required by a mortgagee,
copies of such insurance policies certified by an authorized officer of Tenant's
insurer as being complete and current, shall be delivered to the Landlord
promptly upon request. If a) the Tenant fails to take out or to keep in force
any insurance referred to in this section 6.1, or should any such insurance not
be approved by either the Landlord or any mortgagee, and b) the Tenant does not
commence and continue to diligently cure such default within forty-eight (48)
hours after written notice by the Landlord to the Tenant specifying the nature
of such default, then the Landlord has the right, without assuming any
obligation in connection therewith, to effect such insurance at the sole cost of
the Tenant and all outlays by the Landlord shall be paid by the Tenant to the
Landlord without prejudice to any other rights or remedies of the Landlord under
this Lease. The Tenant shall not keep or use in the Premises any article which
may be prohibited by any fire or casualty insurance policy in force from time to
time covering the Premises or the Building.

         6.2 Loss or Damage. The Landlord shall not be liable for any death or
injury arising from or out of any occurrence in, upon, at, or relating to the
Building or damage to property of the Tenant or of others located on the
Premises or elsewhere in the Building, nor shall it be responsible for any loss
of or damage to any property of the Tenant or others from any cause, UNLESS SUCH
DEATH, INJURY, LOSS, OR DAMAGE RESULTS FROM THE GROSS NEGLIGENCE OR WILLFUL
MISCONDUCT OF THE LANDLORD. Without limiting the generality of the foregoing,
the Landlord shall not be liable for any injury or damage to persons or property
resulting from fire, explosion, falling plaster, falling ceiling tile, falling
fixtures, steam, gas, electricity, water, rain, flood, or leaks from any part of
the Premises or from the pipes, sprinklers, appliances, plumbing works, roof,
windows, or subsurface of any floor or ceiling of the Building or from the
street or any other place or by dampness, or by any other cause whatsoever. The
Tenant agrees to indemnify the Landlord and hold it harmless from and against
any and all loss (including loss of Minimum Rent and additional rent payable in
respect to the Premises), claims, actions, damages, liability, and expense of
any kind whatsoever (including attorneys' fees and costs at all tribunal
levels), UNLESS CAUSED BY THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF LANDLORD
OR ITS AGENTS, arising from any occurrence in, upon, or at the Premises, or the
occupancy, use, or improvement by the Tenant or its agents or invitees of the
Premises or any part thereof, or occasioned wholly or in part by any act or
omission of the Tenant its agents, employees, and invitees or by anyone
permitted to be on the Premises by the Tenant.

                                      -7-
<PAGE>
         6.3 Landlord's Insurance. The Landlord shall throughout the Term carry:
(i) "all risks" insurance on the Building and the machinery and equipment
contained therein or servicing the Building and owned by the Landlord (excluding
any property with respect to which the Tenant and other tenants are obliged to
insure pursuant to section 6.1 or similar sections of their respective leases);
(ii) public liability and property damage insurance with respect to the
Landlord's operations in the Building; and (iii) such other forms of insurance
as the Landlord or its mortgagee reasonably considers advisable. Such insurance
shall be in such reasonable amounts and with such reasonable deductibles as
would be carried by a prudent owner of a similar building, having regard to
size, age, and location.

                      ARTICLE VII. DAMAGE AND DESTRUCTION.
                      -----------  ----------------------

         7.1 Damage to Premises. If the Premises are partially destroyed due to
fire or other casualty, the Landlord shall diligently repair the Premises, to
the extent of its obligations under section 5.1, and Minimum Rent shall abate
proportionately to the portion of the Premises, if any, rendered untenantable
from the date of destruction or damage until the Landlord's repairs have been
substantially completed. If the Premises are totally destroyed due to fire or
other casualty, the Landlord shall diligently repair the Premises to the extent
only of its obligations pursuant to section 5.1, and Minimum Rent shall abate
entirely from the date of destruction or damage to such date which is the
earlier of (i) the date tenantable, or (ii) thirty (30) days after Landlord's
repairs have been substantially completed. Upon being notified by the Landlord
that the Landlord's repairs have been substantially completed, the Tenant shall
diligently perform all other work required to fully restore the Premises for use
in the Tenant's business, in every case at the Tenant's cost and without any
contribution to such cost by the Landlord, whether or not the Landlord has at
any time made any contribution to the cost of supply, installation, or
construction of leasehold improvements in the Premises. Tenant agrees that
during any period of reconstruction or repair of the Premises, it will continue
the operation of its business within the Premises to the extent practicable. If
all or any part of the Premises shall be damaged by fire or other casualty and
the fire or other casualty is caused by the fault or neglect of Tenant or
Tenant's agents, guest, or invitees, rent and all other charges shall not abate.

         7.2 Termination for Damage. Notwithstanding section 7.1, if damage or
destruction which has occurred to the Premises or the Building is such that in
the reasonable opinion of the Landlord such reconstruction or repair cannot be
completed within one hundred twenty (120) days of the happening of the damage or
destruction, the Landlord may, at its option, terminate this Lease on notice to
the Tenant given within thirty (30) days after such damage or destruction and
the Tenant shall immediately deliver vacant possession of the Premises in
accordance with the terms of this Lease.

               ARTICLE VIII. ASSIGNMENT, SUBLEASES, AND TRANSFERS.
               ------------  ------------------------------------

         8.1 Transfer by Tenant. The Tenant shall not enter into, consent to, or
permit any Transfer, as hereinafter defined, without the prior written consent
of the Landlord in each instance, which consent shall not be unreasonably
withheld. For purposes of this Lease, "Transfer" means an assignment of this
Lease in whole or in part; a sublease of all or any part of the Premises; any
transaction whereby the rights of the Tenant under this Lease or to the Premises
are transferred to another; any mortgage or encumbrance of this Lease or the
Premises or any part thereof or other arrangement under which either this Lease
or the Premises become security for any indebtedness or other obligations; and
if Tenant is a corporation or a partnership, the transfer of a controlling
interest in the stock of the corporation or partnership interests, as
applicable. If there is a permitted Transfer, the Landlord may collect rent or
other payments from the transferee and apply the net amount collected to the
rent or other payments required to be paid pursuant to this Lease but no
acceptance by the Landlord of any payments by a transferee shall be deemed a
waiver of any provisions hereof regarding Tenant. Notwithstanding any Transfer,
the Tenant shall not be released from any of its obligations under this Lease.
The Landlord's consent to any Transfer shall be subject to the further condition
that if the Minimum Rent and additional rent pursuant to such Transfer exceeds
the Minimum Rent and additional rent payable under this Lease, the amount of
such excess shall be paid to the Landlord. If, pursuant to a permitted Transfer,
the Tenant receives from the transferee, either directly or indirectly, any
consideration other than Minimum Rent and additional rent for such Transfer,
either in the form of cash, goods, or services, the Tenant shall, upon receipt
thereof, pay to the Landlord an amount equivalent to such consideration.

                                      -8-
<PAGE>
         8.2 Assignment by Landlord. The Landlord shall have the unrestricted
right to sell, lease, convey, or otherwise dispose of the Building or any part
thereof and this Lease or any interest of the Landlord in this Lease. To the
extent that the purchaser or assignee from the Landlord assumes the obligations
of the Landlord under this Lease, the Landlord shall thereupon and without
further agreement be released of all further liability under this Lease. If the
Landlord sells its interest in the Premises, it shall deliver the security
deposit to the purchaser and the Landlord will thereupon be released from any
further liability with respect to the security deposit or its return to the
Tenant and the purchaser shall become directly responsible to Tenant.

                              ARTICLE IX. DEFAULT.
                              ----------  -------

         9.1 Defaults. A default by Tenant shall be deemed to have occurred
hereunder, if and whenever: (i) any Minimum Rent or Tenant's proportionate share
of Increased Operating Costs or Increased Taxes is not paid when due whether or
not any notice or demand for payment has been made by the Landlord; (ii) any
other additional rent is in arrears and is not paid within five (5) days after
written demand by the Landlord; (iii) the Tenant has breached any of its
obligations in this Lease (other than the payment of rent) and the Tenant fails
to remedy such breach within fifteen (15) days (or such shorter period as may be
provided in this Lease), or if such breach cannot reasonably be remedied within
fifteen (15) days (or such shorter period), then if the Tenant fails to
immediately commence to remedy and thereafter proceed diligently to remedy such
breach, in each case after notice in writing from the Landlord; (iv) the Tenant
becomes bankrupt or insolvent; (v) any of the Landlord's policies of insurance
with respect to the Building are cancelled or adversely changed as a result of
Tenant's use or occupancy of the Premises; or (vi) the business operated by
Tenant in the Premises shall be closed by governmental or court order for any
reason.

         9.2 Remedies. In the event of any default hereunder by Tenant, then
without prejudice to any other rights which it has pursuant to this Lease or at
law or in equity, the Landlord shall have the following rights and remedies,
which are cumulative and not alternative:

                  (A) Landlord may cancel this Lease by notice to the Tenant and
retake possession of the Premises for Landlord's account. Tenant shall then quit
and surrender the Premises to Landlord. Tenant's liability under all of the
provisions of this Lease shall continue notwithstanding any expiration and
surrender, or any re-entry, repossession, or disposition hereunder.

                  (B) Landlord may enter the Premises as agent of the Tenant to
take possession of any property of the Tenant on the Premises, to store such
property at the expense and risk of the Tenant or to sell or otherwise dispose
of such property in such manner as the Landlord may see fit without notice to
the Tenant. Re-entry and removal may be effectuated by summary dispossess
proceedings, by any suitable action or proceeding, or otherwise. Landlord shall
not be liable in any way in connection with its actions pursuant to this
section, to the extent that its actions are in accordance with law.

                  (C) If this Lease is cancelled under subsection (A) above,
Tenant shall remain liable (in addition to accrued liabilities) to the extent
legally permissible for all rent and all of the charges Tenant would have been
required to pay until the date this Lease would have expired had such
cancellation not occurred. Tenant's liability for rent shall continue
notwithstanding re-entry or repossession of the Premises by Landlord. In
addition to the foregoing, Tenant shall pay to Landlord such sums as the court
which has jurisdiction thereover may adjudge as reasonable attorneys' fees with
respect to any successful lawsuit or action instituted by Landlord to enforce
the provisions of this Lease.

                                      -9-
<PAGE>
                  (D) Landlord may relet all or any part of the Premises for all
or any part of the unexpired portion of the Term of this Lease or for any longer
period, and may accept any rent then attainable; grant any concessions of Rent,
and agree to paint or make any special repairs, alterations, and decorations for
any new Tenant as it may deem advisable in its sole and absolute discretion.
Landlord shall be under no obligation to relet or to attempt to relet the
Premises.

                  (E) If this Lease is cancelled in accordance with subsection
(A) above, and Landlord so elects, the rent hereunder shall be accelerated and
Tenant shall pay Landlord damages in the amount of any and all sums which would
have been due for the remainder of the Term.

                  (F) Landlord may remedy or attempt to remedy any default of
the Tenant under this Lease for the account of the Tenant and to enter upon the
Premises for such purposes. No notice of the Landlord's intention to perform
such covenants need be given the Tenant unless expressly required by this Lease.
The Landlord shall not be liable to the Tenant for any loss or damage caused by
acts of the Landlord in remedying or attempting to remedy such default and the
Tenant shall pay to the Landlord all expenses incurred by the Landlord in
connection with remedying or attempting to remedy such default. Any expenses
incurred by Landlord shall accrue interest from the date of payment by Landlord
until repaid by Tenant at the highest rate permitted by law.

         9.3 Costs. The Tenant shall pay to the Landlord on demand all costs
incurred by the Landlord, including attorneys' fees and costs at all tribunal
levels, incurred by the Landlord in enforcing any of the obligations of the
Tenant under this Lease. In addition, upon any default by Tenant, Tenant shall
be also liable to Landlord for the expenses to which Landlord may be put in
re-entering the Premises; repossessing the Premises; painting, altering, or
dividing the Premises; combining the Premises with an adjacent space for any new
tenant; putting the Premises in proper repair; protecting and preserving the
Premises by placing watchmen and caretakers therein; reletting the Premises
(including attorneys' fees and disbursements, marshall's fees, and brokerage
fees, in so doing); and any other expenses reasonably incurred by Landlord.

         9.4 Additional Remedies; Waiver. The rights and remedies of Landlord
set forth herein shall be in addition to any other right and remedy now and
hereinafter provided by law. All rights and remedies shall be cumulative and
non-exclusive of each other. No delay or omission by Landlord in exercising a
right or remedy shall exhaust or impair the same or constitute a waiver of, or
acquiescence to, a default.

         9.5 Default by Landlord. In the event of any default by Landlord,
Tenant's exclusive remedy shall be an action for damages, but prior to any such
action Tenant will give Landlord written notice specifying such default with
particularity, and Landlord shall have a period of thirty (30) days following
the date of such notice in which to commence the appropriate cure of such
default. Unless and until Landlord fails to commence and diligently pursue the
appropriate cure of such default after such notice or complete same within a
reasonable period of time, Tenant shall not have any remedy or cause of action
by reason thereof. Notwithstanding any provision of this Lease, Landlord shall
not at any time have any personal liability under this Lease. In the event of
any breach or default by Landlord of any term or provision of this Lease, Tenant
agrees to look solely to the equity or interest then-owned by Landlord in the
Building, and in no event shall any deficiency judgment be sought or obtained
against Landlord.

                 ARTICLE X. ESTOPPEL CERTIFICATE; SUBORDINATION.
                 ---------  -----------------------------------

         10.1 Estoppel Certificate. Within ten (10) days after written request
by the Landlord, the Tenant shall deliver in a form supplied by the Landlord, an
estoppel certificate to the Landlord as to the status of this Lease, including
whether this Lease is unmodified and in full force and effect (or, if there have
been modifications, that this Lease is in full force and effect as modified and
identifying the modification agreements); the amount of Minimum Rent and
additional rent then being paid and the dates to which same have been paid;
whether or not there is any existing or alleged default by either party with
respect to which a notice of default has been served, or any facts exist which,
with the passing of time or giving of notice, would constitute a default and, if
there is any such default or facts, specifying the nature and extent thereof;
and any other matters pertaining to this Lease as to which the Landlord shall
request such certificate. The Landlord, and any prospective purchaser, lender,
or ground lessor shall have the right to rely on such certificate.

                                      -10-
<PAGE>

         10.2 Subordination; Attornment. This Lease and all rights of the Tenant
shall be subject and subordinate to any and all mortgages, security agreements,
or like instruments resulting from any financing, refinancing, or collateral
financing (including renewals or extensions thereof), and to any and all ground
leases, made or arranged by Landlord of its interests in all or any part of the
Building), from time to time in existence against the Building, whether now
existing or hereafter created; provided, however, that, so long as no default or
event which, with the passing of time or giving of notice would constitute a
default, exists under this Lease, any such lender or ground lessor shall not
disturb Tenant's possession of the Premises by joining Tenant as a defendant in
a foreclosure or eviction proceeding. Such subordination shall not require any
further instrument to evidence such subordination. However, on request, the
Tenant shall further evidence its agreement to subordinate this Lease and its
rights under this Lease to any and all documents and to all advances made under
such documents. The form of such subordination shall be made as required by the
Landlord, its lender, or ground lessor. Tenant shall, if requested by such
mortgagee, owner, or purchaser, or by any person succeeding to the interest of
such mortgagee, owner, or purchaser, as the result of the enforcement of the
remedies provided by law or the applicable security instrument held by such
mortgagee, owner, or purchaser, automatically become the tenant of any such
mortgagee, owner, purchaser, or successor-in-interest, without any change in the
terms or other provisions of this Lease; provided, however, that said mortgagee,
owner, purchaser, or successor shall not be bound by (a) any payment of rent or
additional rent for more than one month in advance, or (b) any security deposit
or the like not actually received by such mortgagee, owner, or purchaser, or
successor, or (c) any amendment or modification in this Lease made without the
consent of such mortgagee, owner, purchaser, or successor, or (d) any
construction obligation, free rent, or other concession or monetary allowance,
or (e) any set-off, counterclaim, or the like otherwise available against
Landlord, or (f) any act or omission of any prior landlord (including Landlord).
Upon request by said mortgagee, owner, or purchaser, or successor, Tenant shall
execute and deliver an instrument or instruments confirming its attornment.

                  ARTICLE XI. CONTROL OF BUILDING BY LANDLORD.
                  ----------  -------------------------------

         11.1 Use and Maintenance of Common Areas. The Tenant and those doing
business with Tenant for purposes associated with the Tenant's business on the
Premises, shall have a non-exclusive license to use the Common Areas for their
intended purposes during normal business hours in common with others entitled
thereto and subject to any rules and regulations imposed by the Landlord. The
Landlord shall keep the Common Areas in good repair and condition and shall
clean the Common Areas when necessary. Subject to all of the terms, provisions,
covenants, and conditions contained herein, Tenant shall have the right to use
the number of parking spaces indicated in the Lease Summary in the parking lot
which Landlord shall provide for the use of tenants of the Building. Landlord
shall not be liable for any damage to automobiles of any nature whatsoever to,
or any theft of, automobiles or other vehicles or the contents thereof, while in
or about the parking lots. The Tenant acknowledges that its non-exclusive right
to use any parking facilities forming part of the Building may be subject to
such rules and regulations as reasonably imposed by the Landlord from time to
time. The Tenant acknowledges that all Common Areas shall at all times be under
the exclusive control and management of the Landlord. For purposes of this
Lease, "Common Areas" shall mean those areas, facilities, utilities,
improvements, equipment, and installations of the Building which serve or are
for the benefit of the tenants of more than one component of the Building and
which are not designated or intended by the Landlord to be leased, from time to
time, or which are provided or designated from time to time by the Landlord for
the benefit or use of all tenants in the Building, their employees, customers,
and invitees, in common with others entitled to the use or benefit of same.

                                      -11-
<PAGE>
         11.2 Alterations by Landlord. The Landlord may (i) alter, add to,
subtract from, construct improvements on, re-arrange, and construct additional
facilities in, adjoining, or proximate to the Building; (ii) relocate the
facilities and improvements in or comprising the Building or erected on the
land; (iii) do such things on or in the Building as required to comply with any
laws, by-laws, regulations, orders, or directives affecting the land or any part
of the Building; and (iv) do such other things on or in the Building as the
Landlord, in the use of good business judgment determines to be advisable,
provided that notwithstanding anything contained in this section 11.2, access to
the Premises shall be available at all times. The Landlord shall not be in
breach of its covenants for quiet enjoyment or liable for any loss, costs, or
damages, whether direct or indirect, incurred by the Tenant due to any of the
foregoing.

         11.3 Covenants, Conditions, and Restrictions. Tenant hereby
acknowledges and agrees that the Building of which the Premises is a part, and
Tenant's occupancy thereof, is subject to that certain Master Declaration of
Covenants, Conditions, and Restrictions for Beacon Centre (the "Declaration"),
which Declaration has been recorded among the Public Records of Dade County,
Florida. Copies of the Declaration are located at Landlord's management office
and may be reviewed by Tenant during Landlord's normal business hours. Tenant
hereby acknowledges the existence of such Declaration and agrees to be bound by
the terms thereof (and any amendments or modifications thereto). Tenant hereby
agrees to reimburse Landlord, within five (5) days after demand therefor, for
the proportionate share of Common Expenses attributable to the Premises, as
described in the Declaration.

         11.4 Tenant Relocation. Landlord shall have the right, at any time upon
sixty (60) days' written notice to Tenant, to relocate Tenant into other space
comparable to the Premises within the Building or within the business park of
which the Building is a part. Upon such relocation, such new space shall be
deemed the Premises and the prior space originally demised shall in all respects
be released from the effect of this Lease. If the Landlord elects to relocate
Tenant as above described, (i) the new space shall contain approximately the
same as, or greater usable area than the original space, (ii) the Landlord shall
improve the new space, at Landlord's sole cost, to at least the standards of the
original space, (iii) the Landlord shall pay the reasonable costs of moving
Tenant's trade fixtures and furnishings from the original space to the new
space, (iv) as total compensation for all other costs, expenses, and damages
which Tenant may suffer in connection with the relocation, including but not
limited to, lost profit or business interruption, no Minimum Rent, Operating
Costs, or Taxes shall be due or payable for the first full calendar month of
Tenant's occupancy of the new space, and Landlord shall not be liable for any
further indirect or special expenses of Tenant resulting from the relocation,
(v) Minimum Rent, Tenant's proportionate share of Operating Costs and Taxes, and
all other charges hereunder shall be the same for the new space as for the
original space, notwithstanding that the new space may be larger than the
original space, and (vi) all other terms of this Lease shall apply to the new
space as the Premises, except as otherwise provided in this paragraph.

                           ARTICLE XII. CONDEMNATION.
                           -----------  ------------

         12.1 Total or Partial Taking. If the whole of the Premises, or such
portion thereof as will make the Premises unusable for the purposes leased
hereunder, shall be taken by any public authority under the power of eminent
domain or sold to public authority under threat or in lieu of such taking, the
Term shall cease as of the day possession or title shall be taken by such public
authority, whichever is earlier ("Taking Date"), whereupon the rent and all
other charges shall be paid up to the Taking Date with a proportionate refund by
Landlord of any rent and all other charges paid for a period subsequent to the
Taking Date. If less than the whole of the Premises, or less than such portion
thereof as will make the Premises unusable for the purposes leased hereunder,
the Term shall cease only as to the part so taken as of the Taking Date, and
Tenant shall pay rent and other charges up to the Taking Date, with appropriate
credit by Landlord (toward the next installment of rent due from Tenant) of any
rent or charges paid for a period subsequent to the Taking Date. Minimum Rent
and other charges payable to Landlord shall be reduced in proportion to the
amount of the Premises taken.

         12.2 Taking For Temporary Use. If there is a taking of the Premises for
temporary use, this Lease shall continue in full force and effect, and Tenant
shall continue to comply with Tenant's obligations under this Lease, except to
the extent compliance shall be rendered impossible or impracticable by reason of
the taking. Minimum Rent and other charges payable to Landlord shall be reduced
in proportion to the amount of the Premises taken for the period of such
temporary use.

                                      -12-
<PAGE>
         12.3 Award. All compensation awarded or paid upon a total or partial
taking of the Premises or Building including the value of the leasehold estate
created hereby shall belong to and be the property of Landlord without any
participation by Tenant; Tenant shall have no claim to any such award based on
Tenant's leasehold interest. However, nothing contained herein shall be
construed to preclude Tenant, at its cost, from independently prosecuting any
claim directly against the condemning authority in such condemnation proceeding
for damage to, or cost of removal of, stock, trade fixtures, furniture, and
other personal property belonging to Tenant; provided, however, that no such
claim shall diminish or otherwise adversely affect Landlord's award or the award
of any mortgagee.

                        ARTICLE XIII. GENERAL PROVISIONS.
                        ------------  ------------------

         13.1 Delay. Except as expressly provided in this Lease, whenever the
Landlord or Tenant is delayed in the fulfillment of any obligation under this
Lease, other than the payment of rent or other charges, by an unavoidable
occurrence which is not the fault of the party delayed in performing such
obligation, then the time for fulfillment of such obligation shall be extended
during the period in which such circumstances operate to delay the fulfillment
of such obligation.

         13.2 Holding Over. If the Tenant remains in possession of the Premises
after the end of the Term without having executed and delivered a new lease or
an agreement extending the Term, there shall be no tacit renewal of this Lease
or the Term, and the Tenant shall be deemed to be occupying the Premises as a
Tenant from month to month at a monthly Minimum Rent payable in advance on the
first day of each month equal to twice the monthly amount of Minimum Rent
payable during the last month of the Term, and otherwise upon the same terms as
are set forth in this Lease, so far as they are applicable to a monthly tenancy.

         13.3 Waiver; Partial Invalidity. If either the Landlord or Tenant
excuses or condones any default by the other of any obligation under this Lease,
this shall not be a waiver of such obligation in respect of any continuing or
subsequent default and no such waiver shall be implied. All of the provisions of
this Lease are to be construed as covenants even though not expressed as such.
If any such provision is held or rendered illegal or unenforceable it shall be
considered separate and severable from this Lease and the remaining provisions
of this Lease shall remain in force and bind the parties as though the illegal
or unenforceable provision had never been included in this Lease.

         13.4 Recording. Neither the Tenant nor anyone claiming under the Tenant
shall record this Lease or any memorandum hereof in any public records without
the prior written consent of the Landlord.

         13.5 Notices. Any notice, consent, or other instrument required or
permitted to be given under this Lease shall be in writing and shall be
delivered in person, or sent by certified mail, return receipt requested, or
overnight express mail courier, postage prepaid, addressed (i) if to Landlord,
at the address set forth on the Lease Summary; and (ii) if to the Tenant, at the
Premises or, prior to Tenant's occupancy of the Premises, at the address set
forth on the Lease Summary. Any such notice or other instruments shall be deemed
to have been given and received on the day upon which personal delivery is made
or, if mailed, then forty-eight (48) hours following the date of mailing. Either
party may give notice to the other of any change of address and after the giving
of such notice, the address therein specified is deemed to be the address of
such party for the giving of notices. If postal service is interrupted or
substantially delayed, all notices or other instruments shall be delivered in
person or by overnight express mail courier.

         13.6 Successors; Joint and Several Liability. The rights and
liabilities created by this Lease extend to and bind the successors and assigns
of the Landlord and the heirs, executors, administrators, and permitted
successors and assigns of the Tenant. No rights, however, shall inure to the
benefit of any transferee unless such Transfer complies with the provisions of
Article VIII. If there is at any time more than one Tenant or more than one
person constituting the Tenant, their covenants shall be considered to be joint
and several and shall apply to each and every one of them.

                                      -13-
<PAGE>
         13.7 Captions and Section Numbers. The captions, section numbers,
article numbers, and table of contents appearing in this Lease are inserted only
as a matter of convenience and in no way affect the substance of this Lease.

         13.8 Extended Meanings. The words "hereof," "hereto," "hereunder," and
similar expressions used in this Lease relate to the whole of this Lease and not
only to the provisions in which such expressions appear. This Lease shall be
read with all changes in number and gender as may be appropriate or required by
the context. Any reference to the Tenant includes, when the context allows, the
employees, agents, invitees, and licensees of the Tenant and all others over
whom the Tenant might reasonably be expected to exercise control. This Lease has
been fully reviewed and negotiated by each party and their counsel and shall not
be more strictly construed against either party.

         13.9 Entire Agreement; Governing Law; Time. This Lease and the Exhibits
and Riders, if any, attached hereto are incorporated herein and set forth the
entire agreement between the Landlord and Tenant concerning the Premises and
there are no other agreements or understandings between them. This Lease and its
Exhibits and Riders may not be modified except by agreement in writing executed
by the Landlord and Tenant. This Lease shall be construed in accordance with and
governed by the laws of the State of Florida. Time is of the essence of this
Lease.

         13.10 No Partnership. Nothing in this Lease creates any relationship
between the parties other than that of lessor and lessee and nothing in this
Lease constitutes the Landlord a partner of the Tenant or a joint venturer or
member of a common enterprise with the Tenant.

         13.11 Quiet Enjoyment. If the Tenant pays rent and other charges and
fully observes and performs all of its obligations under this Lease, the Tenant
shall be entitled to peaceful and quiet enjoyment of the Premises for the Term
without interruption or interference by the Landlord or any person claiming
through the Landlord.

         13.12 Brokerage. Landlord and Tenant each represent and warrant one to
the other that except as set forth in the Lease Summary, neither of them has
employed any broker in connection with the negotiations of the terms of this
Lease or the execution thereof. Landlord and Tenant hereby agree to indemnify
and to hold each other harmless against any loss, expense, or liability with
respect to any claims for commissions or brokerage fees arising from or out of
any breach of the foregoing representation and warranty. Landlord recognizes the
broker(s) specified in the Lease Summary as the sole broker(s) with whom
Landlord has dealt in this transaction and agrees to pay any commissions
determined to be due said broker(s). Tenant acknowledges that Codina Realty
Services, Inc.oOncor International represents solely the Landlord with respect
to this Lease.

         13.13 TRIAL BY JURY. LANDLORD AND TENANT EACH HEREBY WAIVES ITS RIGHT
TO A JURY TRIAL OF ANY ISSUE OR CONTROVERSY ARISING UNDER THIS LEASE.

                                      -14-
<PAGE>

                  EXECUTED as of the day and year first above written.

WITNESSES:             LANDLORD:

                       NEW WORLD PARTNERS JOINT VENTURE
                       NUMBER FOUR, a Florida general partnership

                       By:      Codina/Tradewind, Ltd., a Florida
                                limited partnership, managing partner

                                By:     Weeks Beacon Centre,  LLC, a
                                        Georgia limited liability
                                        company, sole general partner

                                        By:   Duke-Weeks Realty Limited
                                              Partnership, an Indiana
                                              limited partnership, sole
                                              member

                                              By:    Duke-Weeks Realty
                                                     Corporation, an
                                                     Indiana corporation,
                                                     its sole general partner

                                                     By:
-----------------------                                 ------------------------
                                                     Name:
-----------------------                                   ----------------------
                                                     Title:
                                                           ---------------------

                       TENANT:

                       99CENT STUFF-BEACON WAREHOUSE, LLC, a
                       Florida limited liability company

                       By:      99Cent Stuff, LLC, a Delaware limited
                                liability company, Member

                                By:
-----------------------            ---------------------------------------------
                                Name:
-----------------------              -------------------------------------------
                                Title:
                                      ------------------------------------------

                                      -15-
<PAGE>
                                   EXHIBIT "A"

                             Floor Plan of Premises

<PAGE>
                                   EXHIBIT "B"

                     Legal Description of Building and Land

Building 21

<PAGE>
                                   EXHIBIT "C"

                              RULES AND REGULATIONS

         1. Security. The Landlord may from time to time adopt appropriate
systems and procedures for the security or safety of the Building, any persons
occupying, using, or entering the same, or any equipment, furnishings, or
contents thereof, and the Tenant shall comply with the Landlord's reasonable
requirements relative thereto.

         2. Return of Keys. At the end of the Term, the Tenant shall promptly
return to the Landlord all keys for the Building and Premises which are in the
possession of the Tenant. In the event any Tenant fails to return keys, Landlord
may retain $50.00 of Tenant's security deposit for locksmith work and
administration.

         3. Repair, Maintenance, Alterations, and Improvements. The Tenant shall
carry out Tenant's repair, maintenance, alterations, and improvements in the
Premises only during times agreed to in advance by the Landlord and in a manner
which will not interfere with the rights of other tenants in the Building.

         4. Water Fixtures. The Tenant shall not use water fixtures for any
purpose for which they are not intended, nor shall water be wasted by tampering
with such fixtures. Any cost or damage resulting from such misuse by the Tenant
shall be paid for by the Tenant.

         5. Personal Use of Premises. The Premises shall not be used or
permitted to be used for residential, lodging, or sleeping purposes or for the
storage of personal effects or property not required for business purposes.

         6. Heavy Articles. The Tenant shall not place in or move about the
Premises without the Landlord's prior written consent any safe or other heavy
article which in the Landlord's reasonable opinion may damage the Building, and
the Landlord may designate the location of any such heavy articles in the
Premises.

         7. Bicycles, Animals. The Tenant shall not bring any animals or birds
into the Building, and shall not permit bicycles or other vehicles inside or on
the sidewalks outside the Building except in areas designated from time to time
by the Landlord for such purposes.

         8. Deliveries. The Tenant shall ensure that deliveries of supplies,
fixtures, equipment, furnishings, wares, and merchandise to the Premises are
made through such entrances, elevators, and corridors and at such times as may
from time to time be designated by the Landlord, and shall promptly pay or cause
to be paid to the Landlord the cost of repairing any damage in the Building
caused by any person making improper deliveries.

         9. Solicitations. The Landlord reserves the right to restrict or
prohibit canvassing, soliciting, or peddling in the Building.

         10. Food and Beverages. Only persons approved from time to time by the
Landlord may prepare, solicit orders for, sell, serve, or distribute foods or
beverages in the Building, or use the Common Areas for any such purpose. Except
with the Landlord's prior written consent and in accordance with arrangements
approved by the Landlord, the Tenant shall not permit on the Premises the use of
equipment for dispensing food or beverages or for the preparation, solicitation
of orders for, sale, serving, or distribution of food or beverages.

         11. Refuse. The Tenant shall place all refuse in proper receptacles
provided by the Tenant at its expense in the Premises or in receptacles (if any)
provided by the Landlord for the Building, and shall keep sidewalks and
driveways outside the Building, and lobbies, corridors, stairwells, ducts, and
shafts of the Building, free of all refuse.

<PAGE>
         12. Obstructions. The Tenant shall not obstruct or place anything in or
on the sidewalks or driveways outside the Building or in the lobbies, corridors,
stairwells, or other Common Areas, or use such locations for any purpose except
access to and exit from the Premises without the Landlord's prior written
consent. The Landlord may remove at the Tenant's expense any such obstruction or
thing caused or placed by the Tenant (and unauthorized by the Landlord) without
notice or obligation to the Tenant.

         13. Proper Conduct. The Tenant shall not conduct itself in any manner
which is inconsistent with the character of the Building as a first quality
building or which will impair the comfort and convenience of other tenants in
the Building.

         14. Employees, Agents, and Invitees. In these Rules and Regulations,
"Tenant" includes the employees, agents, invitees, and licensees of the Tenant
and others permitted by the Tenant to use or occupy the Premises.

         15. Parking. If the Landlord designates tenant parking areas for the
Building, the Tenant shall park its vehicles and shall cause its employees and
agents to park their vehicles only in such designated parking areas. The Tenant
shall furnish the Landlord, upon request, with the current license numbers of
all vehicles owned or used by the Tenant or its employees or agents and the
Tenant thereafter shall notify the Landlord of any changes in such numbers
within five (5) days after the occurrence thereof. In the event of failure of
the Tenant or its employees or agents to park their vehicles in such designated
parking areas, the Tenant shall forthwith on demand pay to the Landlord the sum
of Twenty and No/100 ($20.00) Dollars per day per each car so parked. Landlord
may itself or through any agent designated for such purpose, make, administer,
and enforce additional rules and regulations regarding parking by tenants and by
their employees or agents, including, without limitation, rules and regulations
permitting the Landlord or such agent to move any vehicles improperly parked to
the designated tenant or employee parking areas. No disabled vehicle shall be
left in the parking areas of the Building for more than 24 hours.

                                      -2-
<PAGE>
                                   EXHIBIT "D"

         Tenant acknowledges and agrees that Landlord has afforded Tenant the
opportunity for full and complete examination and inspection of the Premises
prior to executing the Lease and that, except as expressly set forth below,
Tenant is accepting the Premises in "as-is" condition on the date of the Lease
and that Landlord shall have no obligation whatsoever to furnish, render, or
supply any money, work, labor, fixture, material, decoration, or equipment in
order to prepare the Premises for Tenant's occupancy. Any and all alterations
and improvements to the Premises shall be at Tenant's expense (including,
without limitation, any impact fees) and are subject to the provisions of the
Lease applicable to alterations, including, without limitation, that the plans
and specifications for any such alterations and improvements are subject to
Landlord's prior written approval.

         Without limiting the generality of the foregoing, it is specifically
acknowledged that Landlord is not required to construct a demising wall in order
to separate the Premises from the remaining space in the Building. Landlord may
(at its expense) elect to construct a demising wall if and when all or any
portion of the remaining space in the Building is leased to a third party.

         Notwithstanding the foregoing, Landlord shall be responsible to
contribute up to One Hundred Thirty-Seven Thousand One Hundred Fifty and 40/100
($137,150.40) Dollars for alterations and improvements to construct office space
within the Premises (including any necessary demolition and including any
architectural and engineering fees) to be made by Tenant within one (1) year
after the Commencement Date (the "Improvement Allowance"). The plans and
specifications for any such alterations and improvements, and the contractors
and subcontractors to be used by Tenant, are subject to Landlord's prior written
approval, which approval shall not be unreasonably withheld or delayed. The
Improvement Allowance shall be paid by Landlord to Tenant within thirty (30)
days after submission of an invoice to Landlord and receipt by Landlord of a
certificate of occupancy for such work, a contractor's affidavit from Tenant's
general contractor, releases of lien from the applicable subcontractors,
suppliers, and laborers, and as-built drawings of such work, with a list and
description of all work performed by the contractors, subcontractors, and
material suppliers. Tenant shall be solely responsible for any and all costs and
expenses with respect to any alterations and improvements to the Premises which
are above the Improvement Allowance. Tenant shall receive no credit or payment
for any unused portion of the Improvement Allowance.

         However, even if all requirements set forth above have been met for
payment of the Improvement Allowance, the Improvement Allowance shall not be
payable by Landlord if at such time there exists on the part of Tenant a
monetary default under the Lease beyond the expiration of applicable notice and
cure periods. If such a monetary default exists, then Landlord will not be
required to remit the Improvement Allowance to Tenant until such monetary
default has been cured.

<PAGE>
                             RIDER NUMBER 1 TO LEASE

                             dated ___________, 1999

                       99CENT STUFF-BEACON WAREHOUSE, LLC

                                 OPTION TO RENEW

         A. Landlord hereby grants Tenant the option to renew (the "Renewal
Option") the initial Term (not to include, for purposes of this Rider only, the
Renewal Term, as hereinafter defined) for one (1) additional term of sixty-four
(64) months (the "Renewal Term"), commencing as of the date immediately
following the expiration of the initial Term, such option to be subject to the
covenants and conditions hereinafter set forth in this Rider.

         B. Tenant shall give Landlord written notice (the "Renewal Notice") of
Tenant's election to exercise its Renewal Option not later than one hundred
eighty (180) days prior to the expiration of the then-current term of the Lease;
provided that Tenant's failure to give the Renewal Notice by said date, whether
due to Tenant's oversight or failure to cure any existing defaults or otherwise,
shall render the Renewal Option null and void.

         C. Tenant shall not be permitted to exercise the Renewal Option at any
time during which Tenant is in default under the Lease, subject to applicable
notice and grace periods (if any). If Tenant fails to cure any default under the
Lease prior to the commencement of the Renewal Term, subject to applicable
notice and grace periods, the Renewal Term shall be immediately cancelled,
unless Landlord elects to waive such default, and Tenant shall forthwith deliver
possession of the Premises to Landlord as of the expiration or earlier
termination of the then-current term of the Lease.

         D. Tenant shall be deemed to have accepted the Premises in "as-is"
condition as of the commencement of the Renewal Term, subject to any other
repair and maintenance obligations of Landlord under the Lease, it being
understood and agreed that Landlord shall have no additional obligation to
renovate or remodel the Premises or any portion of the Building as a result of
Tenant's renewal of the Lease.

         E. The covenants and conditions of the Lease in force during the
original Term, as the same may be modified from time to time, shall continue to
be in effect during the Renewal Term, except as follows:

                  (1) The "Commencement Date" for the purpose of the Lease shall
be the first day of the Renewal Term.

                  (2) The Minimum Rent for the Renewal Term shall be an amount
equal to the then Fair Market Rental Value of the Premises. "Fair Market Rental
Value" of the Premises shall be an amount determined by Landlord on the basis of
the then-prevailing market rental rate for industrial space comparable to the
Premises as reflected in one or more leases executed by Landlord with new
tenants of the Building within the twelve-month period immediately preceding
commencement of the Renewal Term. If Landlord has not executed any lease with
new tenants within said twelve-month period, the new prevailing market rental
rate determination shall be based on new leases for premises comparable to the
Premises herein, as executed within said twelve-month period by owners of other
comparable industrial properties located in west Miami-Dade County, Florida.
However, in no event shall Minimum Rent for any year of the Renewal Term be less
than the amount of Minimum Rent for the immediately prior year.

                  (3) Following expiration of the Renewal Term as provided
herein, Tenant shall have no further right to renew or extend the Lease.

         F. Tenant's option to renew the Lease shall not be transferable by
Tenant, except in conjunction with a permissible Transfer in accordance with the
applicable provisions of the Lease.

<PAGE>
                     NOTICE REQUIRED BY CHAPTER 88-285, LAWS
                                   OF FLORIDA

                  Chapter 88-285, Laws of Florida, requires the following notice
to be provided with respect to the contract for sale and purchase of any
building, or a rental agreement for any building:

                  "RADON GAS: Radon is a naturally occurring radioactive gas
that, when it has accumulated in a building in sufficient quantities, may
present health risks to persons who are exposed to it over time. Levels of radon
that exceed federal and state guidelines have been found in buildings in
Florida. Additional information regarding radon and radon testing may be
obtained from your county health department."

                                99CENT STUFF-BEACON WAREHOUSE, LLC

                                By:      99Cent Stuff, LLC, a Delaware limited
                                         liability company, Member

                                         By:
                                             -----------------------------------
                                         Name:
                                              ----------------------------------
                                         Title:
                                               ---------------------------------

                                         Date:
                                              ----------------------------------

<PAGE>

                           RECEIPT OF SIGNAGE CRITERIA

                  Pursuant to that certain Lease entered into between the
undersigned Tenant and New World Partners Joint Venture Number Four
("Landlord"), the undersigned, by its execution below, hereby acknowledges
receipt of Landlord's signage criteria as such criteria exists on the date
hereof.

                              99CENT STUFF-BEACON WAREHOUSE, LLC

                              By:      99Cent Stuff, LLC, a Delaware limited
                                       liability company, Member

                                       By:
                                           --------------------------
                                       Name:
                                            -------------------------
                                       Title:
                                             ------------------------
                                       Date:
                                            -------------------------

<PAGE>
                                ADDENDUM TO LEASE

         THIS ADDENDUM TO LEASE (the "Addendum") is made and entered into as of
__________, 1999, by and between NEW WORLD JOINT VENTURE NUMBER FOUR, a Florida
general partnership (the "Landlord"), and 99CENT STUFF-BEACON WAREHOUSE, LLC, a
Florida limited liability company (the "Tenant"), with respect to that certain
Lease of even date herewith (the "Lease"), whereby Landlord leased to Tenant,
and Tenant leased from Landlord, the Premises, as defined in the Lease, in
Beacon Centre, Miami, Florida. All defined terms in this Addendum shall have the
same meaning as in the Lease, except if otherwise noted. Except as amended and
modified by this Addendum, all of the terms, covenants, conditions, and
agreements of the Lease shall remain in full force and effect. In the event of
any conflict between the provisions of the Lease and the provisions of this
Addendum, this Addendum shall control.

         1. Grant; Term. In section 1.1 of the Lease, in the third paragraph, in
the fourth line, delete "five (5) business" and replace it with the following:
"fifteen (15)."

         2. Covenant to Pay. In section 2.1 of the Lease, in the fifth line,
delete "five (5)" and replace it with the following: "fifteen (15)."

         3. Operating Costs; Taxes. In section 2.3 of the Lease:

                  (a) in subsection (a), in the last line, insert the following
after "payments": "(as long as Landlord bills other Building tenants along with
the Tenant)."

                  (b) in subsection (b):

                      (i) in the second line, insert the following after "made":
"(but not to exceed one hundred eighty (180) days)."

                      (ii) in the fifth line, delete "five (5)" and replace it
with the following: "fifteen (15)."

                      (iii) in the eighth line, insert the following after
"installments of": "Minimum Rent and."

                  (c) in subsection (c):

                      (i) in the eighth line, insert the following after
"Areas": "determined in accordance with generally accepted accounting
principles."

                      (ii) in the last line, insert the following after "fee":
"(which management fee shall not exceed five (5%) percent of the gross revenues
of the Building per annum)."

                      (iii) insert the following at the end: "In addition, if
the Building is not fully occupied during any calendar year of the term of this
Lease, the occupancy-sensitive Operating Costs for purposes of this section 2.3
shall be determined as if the Building had been fully occupied during such
calendar year. For the purposes of this section 2.3, "fully occupied" shall mean
occupancy of ninety-five (95%) percent of the rentable area of the Building."

                  (d) in subsection (d), in the last line, insert the following
after "payments"": "(as long as Landlord bills other Building tenants along with
Tenant)."

                  (e) in subsection (e):

<PAGE>
                      (i) in the second line, insert the following after "made":
(but not to exceed one hundred eighty (180) days)."

                      (ii) in the fifth line, delete "five (5)" and replace it
with the following: "fifteen (15)."

                      (iii) in the eighth line, insert the following after
"installments of": "Minimum Rent and."

         4. Rent Past Due. In section 2.5 of the Lease, in the first line,
insert the following after "overdue": "by more than ten (10) days."

         5. Security Deposit. In section 2.6 of the Lease, in the sixth line,
insert the following after "option": "after prior written notice to Tenant."

         6. Landlord's Lien. Delete section 2.7 of the Lease in its entirety and
replace it with the following: "Landlord and Tenant acknowledge the existence of
a landlord's lien pursuant to Chapter 83, Laws of Florida. Notwithstanding the
foregoing, Landlord agrees to subordinate its lien to a bona fide institutional
lender providing acquisition financing or lease financing for Tenant's
furniture, fixtures, and equipment, so that Landlord will have a second lien on
such furniture, fixtures, and equipment.

         7. Signs. In section 3.3 of the Lease, insert the following at the end:
"Landlord's approval will not be unreasonably withheld if the proposed signage
is in compliance with Landlord's signage criteria in effect from time to time.

         8. Right of Examination. In section 4.1 of the Lease, in the second
line, insert the following after "upon": "prior."

         9. Maintenance and Repairs by Tenant. In section 5.2 of the Lease:

                  (a) in the third line, insert the following after "class":
"warehouse."

                  (b) in the sixteenth line, insert the following after
"Landlord": "(which approval will not be unreasonably withheld)."

                  (c) in the eighteenth line, insert the following after "Term":
"(reasonable wear and tear excepted)."

         10. Liens. In section 5.5 of the Lease, in the sixth line, delete
"recording" and replace it with the following: "notice to Tenant of any such
lien having been recorded."

         11. Utilities. In section 5.6 of the Lease, in the first line, delete
"Landlord, or as the Landlord directs" and replace it with the following: "the
applicable utility companies, or, if not separately metered, then to Landlord."

         12. Termination for Damage. In section 7.2 of the Lease, in the sixth
line, delete "immediately" and replace it with the following: ", within thirty
(30) days thereafter,."

         13. Transfer by Tenant. In section 8.1 of the Lease:

                  (a) in the fifteenth line, insert the following after "Lease":
"(unless Landlord expressly consents in writing to a release of Tenant at the
time of the Transfer in question)."

                                       3
<PAGE>
                  (b) insert the following at the end: "Notwithstanding anything
to the contrary contained in this section 8.1, Tenant may assign this Lease or
sublet all or any portion of the Premises, without Landlord's consent, to any
successor of Tenant resulting from a merger or consolidation of Tenant, or as a
result of a sale by Tenant of all or substantially all of its assets or stock,
provided that no such transfer shall relieve Tenant from any liability under
this Lease, whether accrued to the date of such transfer or thereafter accruing;
provided, however, that (i) no such assignment or sublease shall relieve Tenant
from any liability under this Lease, whether accrued to the date of such
assignment or sublease or thereafter accruing (unless Landlord expressly
consents in writing to a release of Tenant at the time of the assignment or
sublease in question), and (ii) such assignee or sublessee expressly assumes, in
writing. All of Tenant's obligations under this Lease, in form and content
reasonably acceptable to Landlord (except, as between a sublessee and Tenant,
for the specific business deal between Tenant and such sublessee), and (iii) no
series of one or more of such transfers shall be used by Tenant to "spin off"
this Lease to independent third parties, and (iv) Tenant shall give Landlord
fifteen (15) days' prior written notice of any such assignment or subletting not
requiring Landlord's consent. In addition, any change in the controlling
interest in the stock of Tenant as a result of an initial public offering of
Tenant's stock, and any transfer of the capital stock of Tenant by persons or
parties through the "over-the-counter market" or through any recognized stock
exchange, shall not be deemed to be a Transfer requiring Landlord's consent."

         14. Assignment by Landlord. In section 8.2 of the Lease:

                  (a) in the fifth line, insert the following after "Lease": "in
connection with any contractual or equitable actions and not in connection with
independent torts committed by Landlord."

                  (b) in the last line, insert the following after "Tenant": ",
so long as Tenant has been notified in writing of the name and address of any
such successor Landlord."

         15. Defaults. In section 9.1 of the Lease:

                  (a) in the third line, insert the following after "paid":
"within five (5) days after."

                  (b) in the fifth line, delete "five (5)" and replace it with
the following: "ten (10)."

         16. Remedies. In section 9.2 of the Lease:

                  (a) in subsection (A), in the second line:

                      (i) insert the following after "account": ", or Landlord
may terminate Tenant's right to possession (without terminating this Lease), for
the account of Tenant."

                      (ii) insert the following after "Tenant": "(in either
event)."

                  (b) in subsection (B), in the sixth line, insert the following
after "otherwise": "to the extent permitted by law."

                  (c) in subsection (C), in the first line, insert the following
after "above": "(such that Tenant's right to possession is terminated)."

                  (d) in subsection (D), in the last line, insert the following
after "Premises": "(except as set forth in subsection (E), below)."

                  (e) in subsection (E):

                                       4
<PAGE>

                      (i) in the first line, insert the following after "above":
"(such that Tenant's right to possession is terminated)."

                      (ii) in the last line, insert the following after "Term":
"(reduced to present value using a discount factor equal to the stated prime
lending rate on the date of Tenant's default by Landlord's then existing
mortgage or, if there is no mortgage, by Bank of America, Citibank, or First
Union, as chosen by Landlord). Prior to or following payment in full by Tenant
of such discounted sum promptly upon demand, Landlord shall use good faith
efforts to relet the Premises. If Landlord receives consideration as a result of
a reletting of the Premises relating to the same time period for which Tenant
has paid accelerated rent, such consideration actually received by Landlord,
less any and all of Landlord's cost of repairs, alterations, additions,
redecorating, and other expenses in connection with such reletting of the
Premises, shall be a credit against such discounted sum, and such discounted sum
shall be reduced if not yet paid by Tenant as called for herein, or if Tenant
has paid such discounted sum, such credited amount shall be repaid to Tenant by
Landlord (provided said credit shall not exceed the accelerated amount)."

                  (f) in subsection (F):

                      (i) in the first line, insert the following after
"Landlord": "(upon written notice to Tenant)."

                      (ii) delete the second sentence in its entirety.

         17. Costs. In section 9.3 of the Lease, insert the following at the
end: "Notwithstanding anything to the contrary contained in this Lease, in the
event of any litigation between Landlord and Tenant arising out of this Lease or
Tenant's use and occupancy of the Premises, the prevailing party shall be
entitled to recover its costs and expenses incurred in such litigation,
including attorney's fees, at all levels, including appeals."

         18. Default by Landlord. In section 9.5 of the Lease:

                  (a) in the fourth line, delete "thirty (30)" and replace it
with the following: "fifteen (15)."

                  (b) insert the following at the end: "If Tenant has received a
final, non-appealable judgment from a court of competent jurisdiction for
damages against Landlord as a result of an uncured default by Landlord under
this Lease after the expiration of Landlord's cure period, and such judgment has
nonetheless not been satisfied within sixty (60) days after the date that the
judgment became final and non-appealable, then Tenant will have the right to
deduct the unpaid amount of such judgment against the Minimum Rent to become due
under this Lease until fully credited."

         19. Subordination; Attornment. In section 10.2 of the Lease, insert the
following at the end: "Notwithstanding the foregoing, any such subordination and
attornment shall be conditioned on the Landlord obtaining a nondisturbance
agreement in favor of Tenant from all mortgages and ground lessors regarding any
financings or ground leases entered into by Landlord prior to or after the date
hereof with respect to the Building."

         20. Alterations by Landlord. In section 11.2 of the Lease, in the last
line, insert the following after "foregoing": "so long as Landlord's exercise of
its rights pursuant to this section 11.2 does not unreasonably interfere with
Tenant's use of the Premises."

         21. Covenants, Conditions and Restrictions. In section 11.3 of the
Lease:

                                       5
<PAGE>

                  (a) in the ninth line, delete "five (5)" and replace it with
the following: "fifteen (15)."

                  (b) insert the following at the end: "It is Landlord's
intention not to double charge Tenant for any expenses pursuant to section 2.3
of this Lease and the Declaration. The expenses solely relating to the Building
are intended to be charged pursuant to section 2.3 of this Lease. Those expenses
that are incurred by Landlord on a park-wide basis (such as, by way of example
only and not as a limitation, park-wide security and landscaping of the
perimeter berm) are passed-through pursuant to the Declaration, but are also
included within the expenses pursuant to section 2.3 of this Lease."

         22. Tenant Relocation. In section 11.4 of the Lease:

                  (a) in the first line, delete "sixty (60)" and replace it with
the following: "ninety (90)."

                  (b) in the second line, insert the following after
"comparable": "(including, without limitation, that in order for such new space
to be comparable, there must be sufficient vacant space contiguous to the new
space so that Tenant's right of first offer as described in section 13.16 of
this Lease remains available)."

                  (c) in the thirteenth line, delete "full calendar month" and
replace it with the following: "three (3) full calendar months."

                  (d) insert the following at the end: "Any such relocation of
Tenant shall take place between Friday at 5:00 p.m. and Monday at 9:00 a.m., so
that Tenant's regular weekday business hours are not interfered with."

         23. Award. In section 12.3 of the Lease, in the eighth line, insert the
following after "Tenant": "and for Tenant's business damages."

         24. Notices. In section 13.5 of the Lease, in the fifth line, delete
"the Premises or, prior to Tenant's occupancy of the Premises, at."

         25. Condition Precedent. Insert the following as section 13.14 of the
Lease: "Notwithstanding anything to the contrary contained herein, this Lease,
and the obligations of the parties hereunder, are expressly made subject to the
satisfaction by Landlord, in Landlord's sole discretion, within the time period
set forth below, of the following condition precedent:

         Within thirty (30) days after the date of this Lease, Techmedia
Computer Systems Corporation (the existing tenant of the Premises) shall have
vacated the Premises such that Landlord may deliver the Premises to Tenant.

         If the condition precedent set forth above has been duly and timely
satisfied as provided above, then Landlord shall notify Tenant in writing. If
such condition precedent has not been duly and timely satisfied, then either
party may terminate this Lease, whereupon Landlord shall return to Tenant the
prepaid rent, and the parties shall be relieved of all further obligations under
this Lease; provided, however, that if Landlord is able to deliver the Premises
to Tenant within fifteen (15) days after delivery of the terminating party's
termination notice, then the termination shall be void and of no further force
or effect, and this Lease shall continue in full force and effect."

         26. Cross-Default. Insert the following as section 13.15 of the Lease:
"The parties acknowledge that Tenant's affiliate has entered or will enter into
a Retail Lease with New World Partners Joint Venture ("NWPJV") (an affiliate of
Landlord) for space in The Plaza at Beacon Centre (the "Retail Lease"). Landlord
and Tenant acknowledge and agree that (a) any default by Tenant's affiliate
under the Retail Lease shall be a default under this Lease, entitling Landlord
to exercise its rights and remedies as provided in this Lease, and (b) any
default by Tenant under this Lease shall be deemed to be a default by Tenant's
affiliate under the Retail Lease, entitling NWPJV to exercise its rights and
remedies as provided in the Retail Lease. Notwithstanding the foregoing,
Landlord agrees that, so long as no uncured default exists on the part of Tenant
under this Lease (as opposed to the Retail Lease), then Landlord will not seek
to evict Tenant from the Premises under this Lease and/or terminate this Lease,
although Landlord reserves the right to seek any other available rights and
remedies as against Tenant hereunder arising out of a default under the Retail
Lease. The security deposit paid by Tenant's affiliate pursuant to the Retail
Lease shall also be the security deposit for this Lease.

                                       6
<PAGE>
         27. Right of First Refusal. Insert the following as section 13.16 of
the Lease: "Commencing on the Commencement Date and continuing through the Term
(and including the Renewal Term, if applicable), Landlord hereby grants to
Tenant a continuing right of first refusal with respect to the space in the
Building contiguous to the Premises (approximately 50,000 square feet) (the
"Right of First Refusal Space"), as and when such space becomes available for
lease from time to time. Such right of first refusal is exercisable by Tenant as
follows: Landlord shall notify Tenant of a bona fide offer received by Landlord
to lease all or any portion of the Right of First Refusal Space (which may be an
offer to lease more than the Right of First Refusal Space, so long as any
portion of the Right of First Refusal Space is included in such offer), which
offer is acceptable to Landlord. (Landlord shall not be required to obtain an
executed lease in order to activate this right of first refusal. Landlord need
only present the terms and conditions of such bona fide offer to Tenant as
reflected in an executed or unexecuted nonbonding letter of intent or similar
proposal.) Tenant shall then have five (5) business days within which to notify
Landlord in writing of Tenant's election to lease the space which is the subject
of such bona fide offer on the same terms and conditions as such bona fide
offer. If Tenant timely elects to lease such space, then, upon delivery of such
space to Tenant, Tenant shall accept possession thereof and such space shall
thereupon become part of the Premises and subject to all of the terms and
conditions of this Lease, as the same may be modified and amended, except where
the business terms and conditions of this Lease need be changed with respect to
such space in order to reflect the business terms and conditions of such bona
fide offer with respect to such space. If Tenant fails to so notify Landlord
within such five (5) business day period, then the right of first refusal with
respect to such bona fide offer shall be deemed to be waived by Tenant and of no
further force or effect until such time as the third party lease entered into by
Landlord for such space based on the terms and conditions of the bona fide offer
expires. However, Landlord shall have a period of ninety (90) days after the
date of Landlord's original written notice to Tenant to enter into a lease with
the third party that was the subject of such bona fide offer (or its affiliate)
on terms not materially more favorable to such third party than the terms set
forth in such bona fide offer. If Landlord does not enter into a lease with such
third party (or its affiliate) on terms not materially more favorable to such
third party than the terms set forth in such bona fide offer by the end of such
ninety (90) day period, or if any of the terms of the offer change in any
significant way, Landlord shall not enter into any lease with respect to the
Right of First Refusal Space without again complying with the provisions of this
section.

         Notwithstanding anything contained herein to the contrary, Tenant shall
not be permitted to exercise the right of first refusal while in default of the
Lease, subject to any applicable default notice and grace or cure periods."

         28. Remaining Space. Insert the following as section 13.17 of the
Lease: "As provided in Exhibit "D" to the Lease, Landlord is not required to
construct a demising wall in order to separate the Premises from the remaining
space in the Building. Landlord may inspect the Premises at any time(s) to
determine whether Tenant is utilizing any other space in the Building in
addition to the Premises. If Tenant is so using all or any portion of such other
space, then Tenant shall immediately vacate the space which is not entitled to
use, unless Landlord, in its sole discretion, allows Tenant to remain in such
space. In any case, for any amount of time that Tenant so utilizes such other
space, Tenant shall be responsible to pay to Landlord rent (plus sales tax) for
such space at the per-square-foot rate then being paid by Tenant as Minimum Rent
and Increased Operating Costs and Increased Taxes for the Premises, based on the
amount of square footage being utilized by Tenant in such other space (as
reasonably estimated by Landlord). The rent for such other space shall be
payable on a monthly basis in the same manner as rent is paid under the Lease,
and shall be prorated for any partial month of Tenant's use of such other space.
However, for the first time that Landlord notifies Tenant that Tenant is so
using any such other space, Landlord will not charge any rental for such other
space to Tenant unless Tenant fails to vacate such other space within three (3)
business days after written notice from Landlord."

                                       7
<PAGE>

         29. Heavy Articles. In section 6 of the Rules and Regulations attached
to the Lease as Exhibit "C" (the "Rules"), insert the following at the end:
"Tenant may keep a safe in the Premises, so long as Tenant does not exceed the
floor load of the portion o the Premises where such safe is kept. Tenant shall
consult with the Landlord as to the recommended location for Tenant's safe."

         30. Parking. In section 15 of the Rules:

                  (a) delete the second sentence in its entirety and replace it
with the following: "Upon Landlord's request (not more than one (1) time per
year), Tenant shall furnish Landlord with the current license numbers of all
vehicles owned or used by the Tenant or its employees or agents."

                  (b) In the ninth line, insert the following after "parked":
"if the offending vehicle has not been moved by Tenant within one (1) business
day after written notice from Landlord."

         31. Enforcement. Insert the following as section 16 of the Rules: "The
rules and regulations will be applied in a nondiscriminatory manner as to
Tenant."

                                       8
<PAGE>

         IN WITNESS WHEREOF, Landlord and Tenant have executed this Addendum as
of the day and year first above written.

WITNESSES:                LANDLORD:

                          NEW WORLD PARTNERS JOINT
                          VENTURE NUMBER FOUR, a Florida
                          General partnership

                          By:      Codina/Tradewind, Ltd., a Florida
                                   Limited partnership, managing
                                   Partner

                                   By:      Weeks Beacon Centre, LLC,
                                            a Georgia limited liability
                                            company, sole general
                                            partner

                                            By:      Duke-Weeks Realty
                                                     Limited Partnership,
                                                     an Indiana limited
                                                     Partnership, sole
                                                     Member

                                                     By:      Duke-Weeks
                                                              Realty
                                                              Corporation,
                                                              an Indiana
                                                              corporation,
                                                              its sole
                                                              general
                                                              partner

__________________                                   By:________________________
                                                     Name:______________________
__________________                                   Title:_____________________

                          TENANT:

                          99CENT STUFF-BEACON WAREHOUSE, LLC,
                          a Florida limited liability company

                          By:      99CENT STUFF, LLC, a Delaware limited
                                   liability company, Member

__________________        By:____________________________
                          Name:__________________________
__________________        Title:_________________________

                                       9
<PAGE>
                            SECOND ADDENDUM TO LEASE

         THIS SECOND ADDENDUM TO LEASE (the "Second Addendum") is made and
entered into as of the 31st day of March, 2000, by and between NEW WORLD
PARTNERS JOINT VENTURE NUMBER FOUR, a Florida general partnership (the "Number
Four"), new world partners joint venture number two, a Florida general
partnership ("Number Two") (Number Four and Number Two are sometime collectively
referred to as the "Landlord"), and 99CENT STUFF-BEACON WAREHOUSE, LLC, a
Florida limited liability company (the "Tenant").

                              W I T N E S S E T H:

         WHEREAS, Number Four and Tenant entered into that certain
Lease-Industrial Commercial, dated August 28, 1999, as amended by that certain
Addendum to Lease, of even date therewith (collectively, the "Lease"), whereby
Number Four leased to Tenant, and Tenant leased from Number Four, the Premises,
as defined in the Lease, consisting of approximately twenty-eight thousand five
hundred seventy-three (28,573) rentable square feet in Building 21 of Beacon
Centre with an address of 8500 N.W. 17th Street, Miami, Florida 33126; and

         WHEREAS, Landlord and Tenant desire to amend and modify the Lease in
order for Tenant to lease from Number Four additional premises located in the
Building, consisting of approximately six thousand six hundred sixty-one (6,661)
rentable square feet of warehouse space (and which includes no office space)
(the "Building 21 Expansion Space"), which Building 21 Expansion Space is more
particularly described in Exhibit "A" attached hereto and made a part hereof, on
the terms and conditions hereinafter set forth; and

         WHEREAS, Landlord and Tenant desire to amend and modify the Lease in
order for Tenant to lease from Number Two additional premises located in
Building 9 of Beacon Centre, consisting of approximately seventeen thousand
eight hundred sixty-five (17,865) rentable square feet (which includes
approximately three thousand give hundred sixty-four (3,564) rentable square
feet of office space) located at 1600 N.W. 84th Avenue, Miami, Florida 33126
(the "Building 9 Expansion Space"), which Building 9 Expansion Space (along with
a legal description of Building 9) is more particularly described in Exhibit
"B," attached hereto and made a part hereof, on the terms and conditions
hereinafter set forth.

         NOW, THEREFORE, in consideration of the mutual covenants contained
herein and in consideration of Ten and No/100 ($10.00) Dollars and other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Landlord and Tenant hereby agree as follows:

1. Incorporation of Recitals. The above recitals are true and correct and are
incorporated herein as if set forth in full.

2. General Provisions. All defined terms in this Second Addendum shall have the
same meaning as the Lease, except as otherwise noted. Except as amended and
modified by this Second Addendum, all of the terms, covenants, conditions, and
agreements of the Lease shall remain in full force and effect. In the event of
any conflict between the provisions of the Lease and the provisions of this
Second Addendum, this Second Addendum shall control. For purposes of this Second
Addendum, (a) the twenty-eight though and five hundred seventy-three (28,573)
square feet leased by Tenant pursuant to the Lease is sometimes referred to the
"Original Premises, " and (b) the Building 21 Expansion Space and the Building 9
Expansion Space are sometimes collectively referred to as the "Expansion Space.:

3. Expiration Date. The parties acknowledge and agree that (unless earlier
terminated in accordance with the Lease) the Expiration Date of the Lease is
August 31, 2004.

4. Grant. Number Four hereby leases to Tenant, and Tenant hereby leases from
Number Four, the Building 32 Expansion Space. The owner of Building 9 is number
Two. Therefore, pursuant to all of the terms, covenants, conditions, and
agreements of the Lease (as modified hereby), Number Two hereby leases to
Tenant, and Tenant hereby leases from Number Two, the Building 9 Expansion
Space.

<PAGE>

5. Expansion Space Commencement Date. The Premises shall be deemed to include
the Expansion Space as of April 1, 2000 (the "Expansion space Commencement
Date"). Upon the Expansion Space Commencement Date, Tenant's obligations to pay
minimum Rent, Tenant's proportionate share of Increased Operating Costs and
Increased Taxes (except for the Building 9 Expansion Space), and any other
amounts with respect to the Expansion Space shall thereupon commence and the
Expansion Space shall thereupon become part of the Premises for all purposes of
the Lease, as modified by this Second Addendum.

         As of the Expansion space Commencement Date, the square footage of the
Premises shall be fifty-three thousand ninety-nine (53,099) rentable square
feet.

6. Term.

         (a) Building 21 Expansion Space. The Term of the Lease with respect to
the Building 21 Expansion Space shall commence on the Expansion Space
Commencement Date and, unless earlier terminated in accordance with the Lease,
shall expire on the Expiration Date of the Lease (i.e., August 31, 2004).

                  (b) Building 9 Expansion Space. The Term of the Lease with
respect to the Building 9 Expansion Space shall commence on the Expansion space
Commencement Date and, unless earlier terminated in accordance with the Lease,
shall expire on March 31, 2001.

7. As-Is. Tenant acknowledges and agrees that Landlord has afforded Tenant the
opportunity for full and complete examination and inspection of the Expansion
space prior to executing this Second Addendum and that Tenant is accepting the
Expansion Space in "as-is" condition on the date hereof and that Landlord shall
have no obligation whatsoever to furnish, render, or supply any money, work,
labor, fixture, material, decoration, or equipment in order to prepare the
Expansion Space for Tenant's occupancy. Any and all alteration and improvements
to the Expansion Space shall be contracted for by Tenant and shall be
constructed at Tenant's expense (including, without limitation, any impact fees)
and are subject to the provisions of the Lease applicable to alterations,
including, without limitation, that the plans and specifications for any such
alterations and improvements are subject to Landlord's prior written approval.

         Notwithstanding the foregoing, Landlord acknowledges that Tenant may
apply any remaining portion of the Improvement Allowance pursuant to Exhibit "D"
to the lease toward improvements to be made to the Building 21 Expansion Space,
subject to the terms and conditions set forth in Exhibit "D" to the Lease.

         In addition, Landlord shall be responsible to contribute up to Five
Thousand and no/100 ($5,000.00) Dollars for alterations and improvements to the
Building 9 Expansion Space (including any necessary demolition and including any
architectural and engineering fees) to be made by Tenant within one (1) year
after the Expansion Space Commencement Date (the "Building 9 Expansion Space
Improvement Allowance"). The plans and specifications for any such alterations
and improvements, and the contractors and subcontractors to be used by Tenant,
are subject to Landlord's prior written approval, which approval shall not be
unreasonably withheld or delayed. The Building 9 Expansion Space Improvement
allowance shall be paid by Landlord to Tenant within thirty (30) days after
submission of an invoice to Landlord and receipt by Landlord of a certificate of
occupancy for such work, a contractor's affidavit from Tenant's general
contractor, releases of lien from the applicable subcontractors, suppliers, and
laborers, and as-built drawings of such work, with a list and description of all
work performed by the contractors, subcontractors, and material suppliers.
Tenant shall be solely responsible for any and all costs and expenses with
respect to any alterations and improvements to the Building 9 Expansion Space,
which are above the Building 9 Expansion Space Improvement Allowance. Tenant
shall receive no credit or payment for any unused portion of the Building 9
Expansion Space Improvement Allowance.

                                       2
<PAGE>

         However, even if all requirements set forth above have been met for
payment of the Building 9 Expansion Space Improvement Allowance, the Building 9
Expansion Space Improvement Allowance shall not be payable by Landlord if at
such time there exists on the part of Tenant a monetary default under the Lease
(as modified hereby) beyond the expiration of applicable notice and cure
periods. If such a monetary default exists, then Landlord will not be required
to remit the Building 9 Expansion Space Improvement Allowance to Tenant until
such monetary default has been cured.

8. Minimum Rent.

         (a) Building 21 Expansion Space. Commencing on the Expansion Space
Commencement Date, the Minimum Rent for the Building 21 Expansion Space (payable
to Number Four in the same manner set forth in the Lease for payments of Minimum
Rent) shall be as follows:

                                    ANNUAL MINIMUM RENT        MONTHLY PAYMENT
            LEASE YEAR              RATE PER SQUARE FOOT      (PLUS SALES TAX)
            ----------              --------------------      ----------------

         04/01/00 - 08/31/00             $7.00                    $3,885.58
         09/01/00 - 08/31/01             $7.28                    $4,041.01
         09/01/01 - 08/31/02             $7.57                    $4,201.98
         09/01/02 - 08/31/03             $7.87                    $4,368.51
         09/01/03 - 08/31/04             $8.18                    $4,540.58

         (b) Building 9 Expansion Space. Commencing on the Expansion Space
Commencement Date, the Minimum Rent for the Building 9 Expansion Space (payable
to Number Two in the same manner set forth in the Lease for payments of Minimum
Rent) shall be equal to Seven and No/100 ($7.00) Dollars per rentable square
foot of the Building 9 Expansion Space per annum, plus tax, payable in advance
on the first day of each month in the amount of Ten Thousand Four Hundred
Twenty-One and 25/100 ($10,421.25) Dollars, plus tax.

9. Operating Costs; Taxes.

         (a) Building 21 Expansion Space. Commencing on the Expansion Space
Commencement Date, the payments with respect to Tenant's proportionate share of
Increased Operating Costs and Increased Taxes for the Building 21 Expansion
Space shall be determined as provided in the Lease, including, without
limitation, that the Base Year shall be the calendar year 1999. With the
addition of the square footage of the Building 21 Expansion Space to the square
footage of the Original Premises, Tenant's proportionate share of Building 21
shall be increased to 44.8%.

         (b) Building 9 Expansion Space. Because Tenant is leasing the Building
9 Expansion Space for twelve (12) months, there shall be no pass-through of
Increased Operating Costs and Increased Taxes for the Building 9 Expansion
Space.

  10. Rent for Original Premises. Nothing contained herein shall be construed to
alter Tenant's obligations to pay to Number Four the Minimum Rent. Tenant's
proportionate share of Increased Operating Costs and Increased Taxes, and any
and any other amounts with respect to the Original Premises in accordance with
the terms of the Lease.

                                       3
<PAGE>

11. Prepaid Rent. The Minimum Rent payable for the first (1st) month of the Term
with respect to the Expansion Space (which is in the amount of Fifteen Thousand
Two Hundred Thirty-Six and 77/100 ($15,236.77) Dollars (which includes sales
tax) (i.e., $4,138.14 for the Building 21 Expansion Space, plus $11,098.63 for
the Building 9 Expansion Space)), shall be paid by Tenant simultaneously with
its execution of this Second Addendum.

12. Security Deposit. Tenant's $22,189.76 security deposit shall continue to be
held by Landlord as security for Tenant's obligations under the Lease, as
modified by this Second Addendum, pursuant to the terms and conditions of the
Lease with respect thereto.

13. Parking.

         (a) Building 21 Expansion Space. In consideration of Tenant['s leasing
of the Building 21 Expansion Space, Tenant shall have the right to use eight (8)
additional unassigned parking spaces in the parking area for Building 21 (which
equals a total of forty-five (45) unassigned parking spaces in the parking area
for Building 21), on the terms and conditions set forth in the Lease, including,
without limitation, section 11.1.

         (b) Building 9 Expansion Space. In consideration of Tenant's leasing of
the Building 9 Expansion Space, Tenant shall have the right to use twenty-three
(23) unassigned parking spaces in the parking area for Building 9, on the terms
and conditions set forth in the Lease, including, without limitation, section
11.1.

14. Option to Renew.

         (a) Building 21 Expansion Space. Nothing contained in this Second
Addendum shall be deemed to modify Tenant's Renewal Option as set forth in Rider
Number 1 to the Lease; provided, however, that Tenant's exercise of its Renewal
Option must include both the Original Premises and the Building 21 Expansion
Space.

         (b) Building 9 Expansion Space. Tenant shall have no right or option
whatsoever to renew or extend the Term with respect to the Building 9 Expansion
Space.

15. Condition Precedent. The parties acknowledge and agree that section 13.14 of
the Lease is deleted in its entirety and is of no further force or effect.

16. Cross-Default. Tenant acknowledges that this Second Addendum does not amend
or modify the cross-default provisions set forth in section 13.15 of the Lease.
In addition, the parties acknowledge and agree that any default by Tenant with
respect to its obligations in connection with the Building 9 Expansion Space
shall entitle Number Four to exercise its rights and remedies as provided in the
Lease with respect to the Original Premises (and the Building 21 Expansion
Space), and any default by Tenant with respect to its obligations in connection
with the Original Premises and/or the Building 21 Expansion Space shall entitle
Number Two to exercise its rights and remedies as provided in the Lease with
respect to the Building 9 Expansion Space.

17. Remaining Space. The parties acknowledge and agree that section 13.17 of the
Lease is deleted in its entirety and is of no further force or effect.

18. Guaranty. By his execution below, Raymond Zimmerman acknowledges and agrees
that his Unconditional Guaranty of the Lease, executed in conjunction with the
Lease, remains unaffected by this Second Addendum.

                                       4
<PAGE>

19. Brokerage. Landlord and Tenant each represent and warrant one to the other
that except as may be hereinafter set forth, neither of them has employed any
broker in connection with the negotiations of the terms of this Second Addendum
or the execution hereof. Landlord and Tenant hereby agree to indemnify and to
hold each other harmless against any loss, expense, or liability with respect to
any claims for commissions or brokerage fees arising from or out of any breach
of the foregoing representation and warranty. Landlord recognizes Codina Realty
Services, Inc. Oncor International and Terranova Corporation as the sole brokers
with whom Landlord has dealt in this transaction and Landlord shall pay any
commissions payable to such brokers pursuant to separate agreements. Tenant
acknowledges that Codina Realty Services, Inc. Oncor International represents
solely the Landlord with respect to this transaction.

  20. Entire Agreement; No Set-Off. The Lease, as modified by this Second
Addendum, sets forth the entire agreement between the Landlord and Tenant
concerning the Premises and Tenant's use and occupancy thereof and there are no
other agreements or understandings between them. Tenant certifies and affirms
that, as of the date hereof, there are no claims, offsets, or breaches of the
Lease, or any action or causes of action against Landlord directly or indirectly
relating to the Lease.

                           [signatures on next page]

                                       5
<PAGE>

         IN WITNESS WHEREOF, Landlord and Tenant have executed this Second
Addendum as of the day and year first above written.

WITNESSES:               LANDLORD:

                         NEW WORLD PARTNERS JOINT  VENTURE
                         NUMBER FOUR, a Florida general partnership

                         NEW WORLD PARTNERS JOINT VENTURE
                         NUMBER TWO, a Florida general partnership

                         By:     Codina/Tradewind, Ltd., a Florida limited
                                 partnership, managing partner

                                 By::     Weeks Beacon Centre, LLC,
                                          a Georgia limited liability company,
                                          sole general partner

                                          By: Duke-Weeks Realty Limited
                                              Partnership, an Indiana limited
                                              partnership, sole member

                                              By:      Duke-Weeks Realty
                                                       Corporation,
                                                       an Indiana corporation,
                                                       its sole general partner

-----------------------                                By: /s/ Forrest Robinson
                                                       Name:  Forrest Robinson
-----------------------                                Title:  EVP

                         TENANT:

                         99CENT STUFF-BEACON WAREHOUSE, LLC, a
                         Florida limited liability company

-----------------------  By:      /s/ John R. Isaac, Jr.
                                 -----------------------
                         Name:   John R. Isaac, Jr.
-----------------------  Title:   CEO

                         GUARANTOR:

-----------------------  /s/  Raymond Zimmerman
                         ----------------------
                         RAYMOND ZIMMERMAN
-----------------------

                                       6
<PAGE>
                             THIRD ADDENDUM TO LEASE

         THIS THIRD ADDENDUM TO LEASE ("Addendum") is entered into as of July
26, 2001, by and between AMB-BEACON CENTRE ALLIANCE, LLC, a Florida limited
liability company ("AMB-Beacon"), AMB-HTD BEACON CENTRE, LLC, a Florida limited
liability company ("AMB-HTD"), and 99CENT STUFF-BEACON WAREHOUSE, LLC, a Florida
limited liability company ("Tenant"), with reference to the following Recitals.
All initial capitalized terms not otherwise defined herein shall have the
meanings set forth in the Lease.

                                    RECITALS
                                    --------

         A. New World Partners Joint Venture Number Four, a Florida general
partnership, and AMB-Beacon's predecessor in interest, and Tenant have
previously entered into that certain lease dated a of August 28, 1999 (the
"First Addendum"), and that certain Second Addendum to Lease dated as of March
31, 2000 (the "Second Addendum"), as set forth in Exhibit A attached hereto (as
amended, the "Original Lease"), pursuant to which Tenant leases from AMB-Beacon
certain premises commonly known as "Building 21", and more particularly
described in the Original Lease.

         B. New World Partners Joint Venture Number Two, a Florida general
partnership, and AMB-HTD's predecessor in interest ("Number Two"), and Tenant
have previously entered into the Original Lease, pursuant to which Tenant leases
from AMB-HTD certain premises commonly known as "Building 9", and more
particularly described in the Original Lease.

         C. The Term of the Original Lease with respect to Building 9 only
expired on March 31, 2001.

         D. The Original Lease is cross defaulted with that certain lease dated
as of August 28, 1999, as amended, by and between an affiliate of AMB-Beacon and
AMB-HTD known as Headlands Realty Corporation, a Maryland corporation, and an
affiliate of Tenant known as 99Cent Stuff-Beacon Centre, LLC, a Florida limited
liability company, d/b/a 99(cent) Stuff (the "Headlands Lease").

         E. The parties hereto desire to amend the Original Lease to provide (i)
that all references to Building 9 and Number Two are removed (as amended by this
Addendum, the "Lease"), and (ii) that the resulting Lease is no longer
cross-defaulted with the Headlands Lease, pursuant to the terms and conditions
set forth herein.

         NOW, THEREFORE, in consideration of the foregoing Recitals and the
mutual promises, covenants and conditions 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
<PAGE>

         1. Incorporation of Recitals. The above Recitals are true and correct
and are incorporated herein as if set forth in full.

         2. Removal of Building 9 Provisions. The parties agree that henceforth,
the Original Lease shall be amended such that (i) all reference to Building 9
shall be removed therefrom, and (ii) all reference to Number Two shall be
removed therefrom, such that henceforth the Lease shall apply only to that space
leased to Tenant by AMB-Beacon, which consists of that space in Building 21
(consisting of approximately 28,573 square feet) and the Building 21 Expansion
Space (consisting of approximately 6,661 square feet) (collectively, the
"Premises").

         3. Cross-Defaults of No Further Force or Effect. Paragraph 13.15 of the
Lease and Paragraph 16 of the Second Addendum are hereby deleted in their
entirety.

         4. Raymond Zimmerman's Guaranty. By his execution below, Raymond
Zimmerman acknowledges and agrees to this Addendum, and acknowledges and agrees
that his Unconditional Guaranty of the Lease, executed in conjunction with the
Lease, shall continue in full force and effect with respect to the Lease, as
amended hereby.

         5. Lease Ratification. Except as amended and/or modified by this
Addendum, the Lease is hereby ratified and confirmed and all other terms of the
Lease shall remain in full force and effect, unaltered and unchanged by this
Addendum and the provisions of the Lease, the provisions of this Addendum shall
prevail.

         6. Counterparts. This Addendum may be executed in any number of
counterparts, each of which shall be deemed an original, but all of which when
taken together shall constitute one and the same instrument. The signature page
of any counterpart may be detached therefrom without impairing the legal effect
of the signature(s) thereon provided such signature page is attached to any
other counterpart identical thereto except having additional signature pages
executed by other parties to this Addendum attached hereto.

                                       2
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused their duly
authorized representatives to execute this Addendum as of the date first above
written.

                  TENANT:           99CENT STUFF-BEACON WAREHOUSE,
                  ------            LLC, a Florida limited liability company

                                    By:   99Cent Stuff, LLC, a Delaware limited
                                          liability company, Member

_______________________                   By:________________________________
_______________________                   Its:_______________________________

                  AMB-BEACON:       AMB-BEACON CENTRE ALLIANCE, LLC, a
                  ----------        Florida limited liability company

                                    By:   AMB Institutional Alliance Fund I,
                                          L.P., its sole member

                                          By: AMB Property, L.P., a Delaware
                                              limited partnership, its general
                                              partner

                                              By: AMB Property Corporation,
                                                  a Maryland corporation, its
                                                  general partner

__________________________                        By:__________________________

__________________________                        Its:_________________________

                  AMB-HTD:          AMB-HTD BEACON CENTRE, LLC, a Florida
                  -------           limited liability company

                                    By:   AMB Property, L.P., a Delaware limited
                                          partnership, its general partner

                                          By: AMB Property Corporation, a
                                              Maryland corporation, its
                                              general partner

__________________________                    By:_______________________________

__________________________                    Its:______________________________

                  GUARANTOR:              ______________________________________
                  ---------               RAYMOND ZIMMERMAN

                                       3
<PAGE>

                           AMB-HTD Beacon Centre, LLC
                     c/o Codina Real Estate Management, Inc.
                              8323 N.W. 12th Street
                                    Suite 115
                              Miami, Florida 33126
                            305.477.8700 (Telephone)
                            305.477-8720 (Facsimile)

                                  July 31, 2001

VIA FEDEX

Mr. Peter Waldron
Aerotek Contract Engineering Services, Inc.
7301 Parkway Drive
Hanover, Maryland

         RE:      LEASE-OFFICE COMMERCIAL DATED JULY 28, 1998 BETWEEN
                  AMB-HTD- BEACON CENTRE, LLC (SUCCESSOR-IN-INTEREST TO NEW
                  WORLD PARTNERS JOINT VENTURE) (THE "LANDLORD") AND AEROTEK
                  CONTRACT ENGINEERING SERVICES, INC. (THE "TENANT"), AS AMENDED
                  BY ADDENDUM TO LEASE OF EVEN DATE HEREWITH (COLLECTIVELY, THE
                  "LEASE"), FOR APPROXIMATELY 6,093 SQUARE FEET IN THE OFFICE
                  BUILDING IN THE VILLAGE OF BEACON CENTRE, WITH AN ADDRESS OF
                  8223 N.W. 12TH STREET, SUITE 200, MIAMI BEACH, FLORIDA 33126

Gentlemen/Ladies:

         This letter will serve as notice that, pursuant to your right of first
offer set forth in section 13.15 of the Lease, Landlord intends to offer for
lease to a third party the "Right of First Offer Space" in Suite 202 of the
building, consisting of approximately 1,607 rentable square feet (in conjunction
with a negotiated termination of the existing tenant's lease for Suite 202).

         Pursuant to your right of first offer, Aerotek has five (5) business
days within which to notify the Landlord in writing of your election to pursue
negotiations for the Right of First Offer Space.

         Please notify me within five (5) business days if Aerotek elects to
pursue negotiations for this space. However, if you could let us know sooner, it
would be greatly appreciated. For your convenience, I have inserted a refusal
notice at the end of this letter which you can sign and send back to me via
facsimile.

                                       4
<PAGE>

         Thank you for your anticipated cooperation in this matter, and if you
have any questions or comments, please call me.

                                   Sincerely,

                                   AMB-HTD - Beacon Centre, LLC

                                   By: Codina Real Estate Management,
                                       Inc., as Agent

                                       By:    /s/ Marta Fernandez
                                              -------------------
                                       Name:  Marta Fernandez
                                       Title: Property Manager

Aerotek Contract Engineering Services, Inc.
does not desire to lease such space.

Aerotek Contract Engineering Services, Inc.

By:      /s/ Mark Korszaloowski
         -----------------------
Name:    Mark Korszaloowski
Title:   Director of Real Estate
Date:    8/1/01

cc:      Mr. David H. Buxbaum
         Aerotek (at the Premises)

                                       5
<PAGE>
                             UNCONDITIONAL GUARANTY
                             ----------------------

         THIS UNCONDITIONAL GUARANTY (the "Guaranty") is made as of this ____
day of August, 1999, by RAYMOND ZIMMERMAN, individually (the "Guarantor"), in
favor of NEW WORLD PARTNERS JOINT VENTURE ("NWPJV"), A Florida general
partnership, and NEW WORLD PARTNERS JOINT VENTURE NUMBER FOUR, a Florida general
partnership ("Number Four") (NWPJV and Number Four are sometimes collectively
referred to as the "Landlord"), and is executed pursuant to that certain (i)
Retail Lease, dated _______________, 1999 (the "Retail Lease"), between NWPJV
and 99CENT STUFF-BEACON CENTRE, LLC, a Florida limited liability company, d/b/a/
99(cent) Stuff (the "Retail Tenant") and (ii) Industrial Lease, dated
______________, 1999 (the "Industrial Lease"), between Number Four and 99CENT
STUFF-BEACON WAREHOUSE, LLC, a Florida limited liability company (the
"Industrial Tenant"). The Retail Lease is with respect to those certain
Premises, as defined in the Retail Lease, located in The Plaza at Beacon Centre,
Miami-Dade County, Florida (the "Warehouse Building"). The Retail Lease and the
Industrial Lease are sometimes collectively referred to as the "Leases." The
Retail Tenant and the Industrial Tenant are sometimes collectively referred to
as the "Tenants."

         In order to induce Landlord to execute the Leases, and for other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Guarantor has guaranteed and hereby does guaranty the payment and
performance of all liabilities, obligations, and duties (including, without
limitation, payment of rent) imposed upon Tenants under the terms of the Leases
(for so long as this Guaranty is in effect as described below), as if Guarantor
has executed the Leases as Tenant thereunder, irrespective of the expiration of
the Leases, the invalidity or unenforceability of the Leases or any provision
therein, or the insufficiency, invalidity, or unenforceability of any security
interest which might have been, or be hereafter, given to Landlord to secure
Tenant's obligations contained in the Leases.

         Guarantor hereby acknowledges, and waives notice of, acceptance of this
Guaranty and all other notices in connection herewith or in connection with the
liabilities, obligations, and duties guaranteed hereby, including, but not
limited to, notices of default by or to Tenants under the Leases, and waives
demand for payment, protest, diligence, presentment, notice of protest, and suit
on the part of Landlord in the enforcement of any liability, obligation, or duty
guaranteed hereby. Guarantor further waives, to the fullest extent permitted by
law, all defenses given to sureties and guarantors by statute, at law, or in
equity.

         Guarantor further agrees that Landlord shall not be first required to
enforce against Tenants or any other person any liability, obligation, or duty
guaranteed hereby before seeking enforcement thereto against Guarantor. Suit may
be brought and maintained against Guarantor by Landlord to enforce any
liability, obligation, or duty guaranteed hereby without joinder of Tenants or
any other person. The effectiveness of this Guaranty shall not be affected by
any indulgence, compromise, settlement, or variation of terms which may be
extended to Tenants by Landlord or agreed upon by landlord and Tenants, and
shall not be impaired, modified, changed, released, or limited in any manner
whatsoever by any impairment, modification, change, release, or limitation of
the liability of Tenants or their respective estates in bankruptcy, or of any
remedy for the enforcement thereof, resulting from the operation of any present
or future provision of the National Bankruptcy Code, or any similar law or
statute of the United States or any State thereof. Landlord and either or both
of the Tenants, without notice to, or consent by, Guarantor, may at any time or
times enter into such amendments, assignments, subleases, or other covenants
respecting either or both of the Leases as they may deem appropriate, including,
but not limited to, an increase in the rent due under either or both of the
Leases or any other obligation thereunder; and Guarantor shall not be released
thereby, but shall continue to be fully liable for the payment and performance
of all liabilities, obligations, and duties of Tenants under the Leases as so
amended, assigned, subleased, or otherwise modified.

                                       6
<PAGE>
         Subject to the exceptions expressly set forth below, this Guaranty is
absolute, unconditional, and continuing in any event, and shall not terminate
until the payment of all sums and the performance of all obligations evidenced
by the Leases.

         It is understood that other agreements similar to this Guaranty may, at
Landlord's sole opinion and discretion, be executed by other persons with
respect to the Leases. This Guaranty shall be joint and several and cumulative
of any such agreements and the liabilities and obligations of Guarantor
hereunder shall in no event be affected or diminished by reason of such other
agreements. Moreover, if Landlord obtains the signature of more than one
guarantor in this Guaranty, or obtains additional guaranty agreements, or both,
Guarantor agrees that Landlord, in Landlord's sole discretion, may (i) bring
suit against all guarantors of either or both of the Leases jointly and
severally or against any one or more of them, (ii) compound or settle with any
one or more of the guarantors for such considerations as Landlord may deem
proper, and (iii) release any one or more of the guarantors from liability.
Guarantor further agrees that no such action shall impair the rights of Landlord
to enforce the Leases against any remaining guarantor or guarantors, including
Guarantor.

         Guarantor agrees that if Landlord shall employ an attorney to present,
enforce, or defend any or all of Landlord's rights or remedies hereunder or
under the Leases, Guarantor shall pay any reasonable attorneys' fees incurred by
Landlord in such connection, whether such fees or incurred before or at trial or
on appeal. Notwithstanding the foregoing, in the event of any litigation between
Landlord and Guarantor arising out of this Guaranty, the prevailing party shall
be entitled to recover its costs and expenses incurred in such litigation,
including attorneys' fees, at all levels, including appeals.

         In the event the Landlord, or any successor owner of the Shopping
Center and/or the Warehouse Building, sells, conveys, or otherwise transfers the
Shopping Center and/or the Warehouse Building and/or either or both of the
Leases, this Guaranty shall not be abrogated thereby, and shall continue in full
force and effect.

         This Guaranty shall be governed by, and construed in accordance with,
the laws of the State of Florida. If any provision of this Guaranty should be
held to be invalid or unenforceable, the validity and enforceability of the
remaining provisions of this Guaranty shall not be affected thereby.

         This Guaranty shall be binding upon Guarantor and Guarantor's
successors, heirs, executors, administrators, and assigns, and shall inure to
the benefit of Landlord and Landlord's successors, heirs, executors,
administrators, and assigns.

                                       7
<PAGE>
         Notwithstanding anything to the contrary contained in this Guaranty,
(a) Guarantor's total liability under this Guaranty shall not exceed an amount
equal to the rent (as defined in the Retail Lease) payable by Tenant under the
Retail Lease for the first two (2) years and four (4) months of the Term (as
defined in the Retail Lease), commencing on the Commencement Date (subject to
decline as described below) (the "Guaranteed Amount"), plus attorneys' fees and
costs incurred by Landlord in enforcing this Guaranty, and (b) this Guaranty
shall be applicable only with respect to the obligations of Tenants accruing
under the Leases for the first sixty-four (64) months of the Term of the Retail
Lease, commencing on the Commencement Date of the Retail Lease, no uncured event
of default, or event which, with the passing of time or giving of notice would
constitute a default, exists under the Leases on the part of Tenants, then this
Guaranty shall be deemed to be terminated and of no further force or effect
without the necessity of any further documentation evidencing such termination.
Nevertheless, upon such termination and after Guarantor's written request,
Landlord shall confirm the termination of this Guaranty in writing. With respect
to the Guaranteed Amount, commencing on the first (1st) day of the fortieth
(40th) month of the Term of the Retail Lease and continuing for each month until
the expiration of this Guaranty, the Guaranteed Amount shall continually decline
so as to be equal to the then-remaining rent payable by the Retail Tenant under
the Retail Lease for the remainder of the Term of the Retail Lease. For example
purposes only (and not as a means of limitation), if there is a default under
either of the Leases in the fiftieth (50th) month of the Term of the Retail
Lease, then the Guaranteed Amount shall only be equal to the rent payable under
the Retail Lease for the fiftieth (50th) month through the sixty-fourth (64th
month) of the Term of the Retail Lease.

         In addition, for so long as either Tenant's net worth (as determined by
generally accepted accounting principles, consistently applied) is equal to or
greater than Three Million and No/100 ($3,000,000.00) Dollars (the "Minimum Net
Worth Requirement"), then Landlord shall not seek to enforce this Guaranty
against Guarantor, notwithstanding a default by either Tenant that would give
Landlord the right to so seek enforcement against Guarantor. At such time(s) as
Landlord seeks to enforce this Guaranty, and at any other times requested by
Landlord (whether or not a default under the Leases has occurred), Guarantor
shall be required to deliver to Landlord such evidence of the Minimum Net Worth
Requirement from time to time, certified to be true and correct by an
independent certified public accountant or Tenant's Chief Financial Officer
(only if other than Guarantor). If at any time the Minimum Net Worth Requirement
is not met, then Landlord may seek to enforce this Guaranty, notwithstanding the
fact that the Minimum Net Worth Requirement may have been met at the time of the
default in question.

                                       8
<PAGE>

         In addition to the foregoing and notwithstanding anything herein to the
contrary, the Guarantor shall have the ability at any time during the Term of
the Leases, in its sole and absolute discretion, to substitute himself with a
corporate entity (subject to the requirements set out below) as Guarantor
hereunder (the new guaranty to be executed by the substituted party to be
hereinafter referred to as the "Substitute Guaranty") and Landlord, at that
time, shall not have any right to reject said substitution. If Guarantor elects
to substitute himself with a corporate entity as described herein, whether said
corporate entity is affiliated with the Tenants or not (the "Corporate
Guarantor") as Guarantor hereunder, and so long as on the day of said
substitution the Corporate Guarantor meets the Minimum Net Worth Requirement (as
certified true and correct by an independent certified public accountant or the
Corporate Guarantor's Chief Financial Officer only if other than Guarantor),
then, from and after Landlord's receipt of the Substitute Guaranty, this
Guaranty shall be deemed to be terminated and of no further force or effect.
Upon such termination and after Guarantor's written request, Landlord shall
confirm the termination of this Guaranty in writing. Although there is no
requirement for the Corporate Guarantor to maintain the Minimum Net Worth
Requirement after its agreement to substitute itself in place of Guarantor, the
Corporate Guarantor shall attempt to maintain the Minimum Net worth Requirement
on a bona fide basis, it being the intent of the parties that the Corporate
Guarantor will not be formed for the sole purpose of providing the Substitute
Guaranty and will then transfer out its assets promptly after this Guaranty has
been terminated. The form of the Substitute Guaranty shall be reasonably
acceptable to Landlord, and the Corporate Guarantor shall provide a corporate
resolution authorizing the Corporate Guarantor to provide such Substitute
Guaranty.

         GUARANTOR HEREBY WAIVES TRAIL BY JURY IN ANY ACTION, PROCEEDING, OR
COUNTERCLAIM BROUGHT BY LANDLORD AGAINST GUARANTOR ON ANY MATTERS ARISING OUT OF
OR IN ANY WAY CONNECTED WITH THE LEASE OF THIS GUARANTY.

                            [signature on next page]

                                       9
<PAGE>

         EXECUTED as of the day and year first above written, to be effective as
of the date of the Lease.

WITNESSES:                  GUARANTOR:

_______________________     /s/  Raymond Zimmerman
                            ---------------------------------------
                            RAYMOND ZIMMERMAN, individually
_______________________
                            Address:  1801 Clint Moore Road, Suite 217
                            Boca Raton, Florida 33487

STATE OF FLORIDA      )
                      )  ss:
COUNTY OF PALM BEACH  )

         The foregoing instrument was acknowledged before me this 19th day of
August, 1999, by RAYMOND ZIMMERMAN, individually, who is personally known to me
or has produced a valid Florida driver's license as identification.

                            /s/  Julie A. Weber
                            ---------------------------
                            Print Name:  Julie A. Weber
                                         Notary Public

My commission expires:
March 8, 2002

                                       10EXHIBIT 10.3
                              INVESTMENT AGREEMENT

     INVESTMENT AGREEMENT (this "AGREEMENT"), dated as of August 23, 2002 by and
between  FTS Apparel, Inc., a Colorado corporation (the "COMPANY"), and Dutchess
Private  Equities  Fund, L.P., a Delaware limited partnership  (the "INVESTOR").

     WHEREAS,  the  parties  desire  that,  upon  the  terms  and subject to the
conditions  contained  herein,  the  Investor  shall  invest up to $6,000,000 to
purchase  the  Company's  common  stock,  $.001 par value per share (the "COMMON
STOCK");

     WHEREAS,  such  investments will be made in reliance upon the provisions of
Section 4(2) under the Securities Act of 1933, as amended (the "1933 ACT"), Rule
506  of  Regulation  D,  and  the  rules and regulations promulgated thereunder,
and/or  upon such other exemption from the registration requirements of the 1933
Act  as may be available with respect to any or all of the investments in Common
Stock  to  be  made  hereunder;  and

     WHEREAS,  contemporaneously  with  the  execution  and  delivery  of  this
Agreement, the parties hereto are executing and delivering a Registration Rights
Agreement  substantially  in  the  form  attached  hereto  as  Exhibit  A  (the
"REGISTRATION  RIGHTS  AGREEMENT")  pursuant  to which the Company has agreed to
provide  certain  registration  rights  under  the  1933  Act, and the rules and
regulations  promulgated  thereunder,  and  applicable  state  securities  laws.

     NOW  THEREFORE,  in consideration of the foregoing recitals, which shall be
considered  an integral part of this Agreement, the covenants and agreements set
forth  hereafter,  and  other  good  and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the Company and the Investor hereby
agree  as  follows:

     1.     DEFINITIONS.  As  used  in this Agreement, the following terms shall
have  the  following meanings specified or indicated, and such meanings shall be
equally  applicable  to  the  singular  and  plural  forms of the defined terms.

"1933  ACT"  shall  mean  the  Securities  Act  of  1933,  as it may be amended.

"1934 ACT" shall mean the Securities Exchange Act of 1934, as it may be amended.

"AFFILIATE"  shall  have  the  meaning  specified  in  Section  5(h).

"AGREED  UPON  PROCEDURES  REPORT"  shall  have the meaning specified in Section
2(o).

"AGREEMENT"  shall  mean  this  Investment  Agreement.

<PAGE>

"BRING  DOWN  COLD  COMFORT  LETTER" shall have the meaning specified in Section
2(n).

"BUY-IN"  shall  have  the  meaning  specified  in  Section  6.

"BUY-IN  ADJUSTMENT  AMOUNT"  shall  have  the  meaning  specified in Section 6.

"CLOSING"  shall  have  the  meaning  specified  in  Section  2(h).

"CLOSING  DATE"  shall  mean,  as  defined  in  Section  2(h), the date which is
thirteen  (13)  Trading  Days  following  the  Put  Notice  Date.

"COMMON  STOCK"  shall  mean  the  Common  Stock  of  the  Company.

"CONTROL"  or  "CONTROLS"  shall  have  the  meaning  specified in Section 5(h).

"COVERING  SHARES"  shall  have  the  meaning  specified  in  Section  6.

"EFFECTIVE  DATE"  shall  mean  the  date  the  SEC  declares  effective  the
Registration  Statement  covering  the  transactions described in the Agreement.

"ENVIRONMENTAL  LAWS"  shall  have  the  meaning  specified  in  Section  4(m).

"ESCROW  AGENT"  shall  mean  Joseph  B.  LaRocco.

"ESCROW  AGREEMENT"  shall  mean  the  Escrow Agreement entered into between the
Company,  Investor  and  Escrow  Agent  and  attached  as  Exhibit  C.

"EXECUTION  DATE"  shall mean the date all Transaction Documents are executed by
the  Company  and  Investor.

"INDEMNITEES"  shall  have  the  meaning  specified  in  Section  10.

"INDEMNIFIED  LIABILITIES"  shall  have  the  meaning  specified  in Section 10.

"INEFFECTIVE  PERIOD"  shall  mean  any  period  of  time  that the Registration
Statement  or  any  Supplemental  Registration  Statement  (as  defined  in  the
Registration  Rights  Agreement)  becomes ineffective or unavailable for use for
the  sale  or resale, as applicable, of any or all of the Registrable Securities
(as  defined  in  the  Registration  Rights Agreement) for any reason (or in the
event  the  prospectus under either of the above is not current and deliverable)
during  any  time  period  required  under  the  Registration  Rights Agreement.

"INVESTOR"  shall  mean Dutchess Private Equities Fund, L.P., a Delaware limited
partnership.

<PAGE>

"MAJOR  TRANSACTION"  shall  have  the  meaning  specified  in  Section  2(g).

"MATERIAL  ADVERSE  EFFECT"  shall  have  the meaning specified in Section 4(a).

"MATERIAL  FACTS"  shall  have  the  meaning  specified  in  Section  2(m).

"MAXIMUM  COMMON  STOCK  ISSUANCE"  shall  have the meaning specified in Section
2(j).

"MINIMUM ACCEPTABLE PRICE" with respect to any Put Notice Date shall mean 75% of
the  Volume  Weighted  Average  Price  for  the  fifteen (15) Trading Day period
immediately  preceding  such  Put  Notice  Date.

"OPEN  PERIOD" shall mean the period beginning on and including the Trading Day
immediately  following  the Effective Date and ending on the earlier to occur of
(i)  the  date  which is thirty-six (36) months from the Effective Date and (ii)
termination  of  the  Agreement  in  accordance  with  Section  9.

"PAYMENT  AMOUNT"  shall  have  the  meaning  specified  in  Section  2(p).

"PARTIAL  RELEASE  FORM"  shall  have  the  meaning  specified  in Section 2(i).

"PRICING  PERIOD"  shall  mean  the  period beginning on the Put Notice Date and
ending  on  and including the date which is ten (10) Trading Days after such Put
Notice  Date.

"PRINCIPAL  MARKET"  shall mean the National Association of Securities Dealer's,
Inc.  OTC  electronic bulletin board or, if the Common Stock ceases to be traded
on  the electronic bulletin board, the American Stock Exchange, Inc., the Nasdaq
National Market System or the Nasdaq SmallCap Market, whichever is the principal
market  on  which  the  Common  Stock  is  listed.

"PROSPECTUS"  shall mean the prospectus, preliminary prospectus and supplemental
prospectus  used  in  connection  with  the  Registration  Statement.

"PURCHASE  AMOUNT"  shall  mean the total amount being paid by the Investor on a
particular  Closing  Date  to  purchase  the  Shares.

"PURCHASE  PRICE"  shall mean 92% of the average of the three (3) lowest closing
bid  prices  of  the  Company's Common Stock during ten (10) Trading Day Pricing
Period.

"PUT  AMOUNT"  shall  have  the  meaning  set  forth  in  Section  2(b)  hereof.

"PUT  NOTICE"  shall  mean  a written notice sent to the Investor by the Company
stating  the  Put  Amount  of Shares the Company intends to sell to the Investor
pursuant  to the terms of the Agreement and stating the current number of Shares
issued  and  outstanding  on  such  date.

<PAGE>

"PUT  NOTICE  DATE"  shall mean the Trading Day immediately following the day on
which  the  Investor receives a Put Notice, however a Put Notice shall be deemed
delivered on (x) the Trading Day it is received by facsimile or otherwise by the
Investor  if  such  notice is received prior to 12:00 noon Eastern Time (receipt
being  deemed to occur if the Company possesses a facsimile confirmation showing
completed  transmission by such time), or (y) the immediately succeeding Trading
Day if it is received by facsimile or otherwise after 12:00 noon Eastern Time on
a  Trading  Day  (receipt  being  documented as described in (x) above).  No Put
Notice  may  be  deemed  delivered  on  a  day  that  is  not  a  Trading  Day.

"REGISTRATION  OPINION"  shall  have  the  meaning  specified  in  Section 2(m).

"REGISTRATION  OPINION  DEADLINE"  shall mean the date that is three (3) Trading
Days  prior  to  each  Put  Notice  Date.

"REGISTRATION  PERIOD"  shall  have  the  meaning  specified  in  Section  5(c).

"REGISTRATION  RIGHTS  AGREEMENT"  shall  mean the Agreement entered into by the
Company  with  Investor  for  the  registration  of  this  transaction.

"REGISTRATION  STATEMENT"  means the registration statement of the Company filed
under  the  1933  Act  covering  this  transaction.

"RELATED  PARTY"  shall  have  the  meaning  specified  in  Section  5(h).

"REPURCHASE  EVENT"  shall  have  the  meaning  specified  in  Section  2(p).

"RESOLUTION"  shall  have  the  meaning  specified  in  Section  8(f).

"SEC"  shall  mean  the  Securities  &  Exchange  Commission.

"SEC  DOCUMENTS"  shall  have  the  meaning  specified  in  Section  4(f).

"SECURITIES"  shall mean the shares of Common Stock issued pursuant to the terms
of  the  Agreement.

"SHARES" shall mean the shares of common stock of the Company having a par value
of $.001  per  share.

"SOLD  SHARES"  shall  have  the  meaning  specified  in  Section  6.

"SUBSIDIARIES"  shall  have  the  meaning  specified  in  Section  4(a).

"TRADING DAY" shall mean any day on which the Principal Market for the Company's
common  stock  is  open  for  trading.

<PAGE>

"TRANSACTION DOCUMENTS" shall mean the Agreement, Registration Rights Agreement,
Escrow  Agreement  and  each of the other agreements entered into by the parties
hereto  in  connection  with  the  Agreement.

"VALUATION  EVENT"  shall  have  the  meaning  specified  in  Section  2(k).

"VOLUME WEIGHTED AVERAGE PRICE" shall be the daily volume average weighted price
of  the  Common Stock on the Principal Market between the hours of 9:00 a.m. and
4:00  p.m.  on  a  Trading  Day  as  reported  by  Bloomberg  Financial  Markets
("BLOOMBERG"),  or if not available through Bloomberg because of delisting, then
the  average of the bid prices for the Common Stock of any market makers for the
Common  Stock as reported in the "pink sheets" by the National Quotation Bureau,
Inc.

     2.     PURCHASE  AND  SALE  OF  COMMON  STOCK

     a.  Purchase  and  Sale  of Common Stock. Upon the terms and conditions set
forth herein, the Company shall issue and sell to the Investor, and the Investor
shall purchase from the Company, up to that number of Shares having an aggregate
Purchase  Price  of  $6,000,000.

     b.     Delivery of Put Notices.     (i) Subject to the terms and conditions
of  the Transaction Documents, and from time to time during the Open Period, the
Company  may, in its sole discretion, deliver a Put Notice to the Investor which
states  the  Put  Amount(designated in shares of Common Stock) which the Company
intends to sell to the Investor during the Pricing Period.  The Put Notice shall
be  in  the  form  attached  hereto  as  Exhibit  "F" and incorporated herein by
reference.  The  Company  shall  deliver  a copy of the Put Notice to the Escrow
Agent.  The  Put Amount designated by the Company in a Put Notice shall be equal
to  two  hundred  fifty  percent (250%) of the average daily volume (U.S. market
only)  of  the  Common  Stock  for  the  twenty  (20)  Trading Days prior to the
applicable  Put  Notice  Date  multiplied  by the average of the three (3) daily
closing bid prices immediately preceding the Put Date, but in no event more than
$1,000,000.  Once  the  Put  Notice  is received by the Investor, the Put Notice
shall not be terminated, withdrawn or otherwise revoked by the Company except as
set  forth  in  Section  (b)(ii) of this Agreement.  During the Open Period, the
Company  shall  not  be entitled to submit a Put Notice until after the previous
Closing  has  been completed. The Purchase Price for the Common Stock identified
in  the  Put Notice shall be equal to 92% of the average of the three (3) lowest
closing bid prices of the Company's Common Stock during the ten (10) Trading Day
Pricing  Period.

     (ii)  The  Company  shall, in its sole discretion, be entitled to terminate
the  balance  of  the  current  Put  Notice, if the closing bid price during the
applicable  Pricing  Period  with  respect  to  that  Put  Notice  is  less than
seventy-five  percent  (75%)  of the Volume Weighted Average Price of the Common
Stock  for  the fifteen (15) Trading Days prior to the Put Notice Date ("MINIMUM
ACCEPTABLE  PRICE").  In the event that the closing bid price for the applicable
Pricing  Period  is  less  than  the  Minimum

<PAGE>

Acceptable  Price,  the  Company  may  elect,  by  sending written notice to the
Investor  via  facsimile with a copy to the Escrow Agent, to cancel that portion
of  the Put Notice remaining for that number of Trading Days remaining after the
written  cancellation notice remaining for that number of Trading Days remaining
after  the written cancellation notice is deemed received by the Investors.  The
written  notice shall be deemed received by the Investors on (i) the Trading Day
it  is  received  by  facsimile  or otherwise by the Investors if such notice is
received  on  or  prior  to  12:00  noon  New York time, or (ii) the immediately
succeeding  Trading Day if it is received by facsimile after 12:00 noon New York
time  on  a  Trading Day or at anytime on a day which is not a Trading Day.  The
Company shall still be responsible however, for delivering that number of shares
of  Common Stock to the Escrow Agent that were sold by the Investors through and
including  the  end of the Trading Day the written cancellation notice is deemed
received  by  the  Investors.

     (iii) Within ten (10) calendar days after the commencement of each calendar
quarter occurring subsequent to the commencement of the Open Period, the Company
undertakes  to  notify  Investor as to its reasonable expectations as to the Put
Amount  it  intends  to  raise during such calendar quarter, if any, through the
issuance  of  Put Notices. Such notification shall constitute only the Company's
good  faith  estimate  with respect to such calendar quarter and shall in no way
obligate  the  Company  to  raise  such  amount  during such calendar quarter or
otherwise limit its ability to deliver Put Notices during such calendar quarter.
The  failure  by  the  Company to comply with this provision can be cured by the
Company's  notifying Investor at any time as to its reasonable expectations with
respect  to  the  current  calendar  quarter.

     c.  Interest. It is the intention of the parties that any interest that may
be  payable  under  this Agreement shall not exceed the maximum amount permitted
under  any  applicable law. If a law, which applies to this Agreement which sets
the  maximum  interest  amount,  is  finally interpreted so that the interest in
connection  with this Agreement exceeds the permitted limits, then: (1) any such
interest  shall be reduced by the amount necessary to reduce the interest to the
legally  permitted  limit;  and (2) any sums already collected (if any) from the
Company  which  exceed  the  legally  permitted  limits  will be refunded to the
Company. The Investor may choose to make this refund by reducing the amount that
the  Company  owes  under  this  Agreement  or by making a direct payment to the
Company.  If a refund reduces the amount that the Company owes the Investor, the
reduction  will  be  treated as a partial payment. In case any provision of this
Agreement  is held by a court of competent jurisdiction to be excessive in scope
or  otherwise  invalid or unenforceable, such provision shall be adjusted rather
than  voided,  if  possible,  so  that  it  is enforceable to the maximum extent
possible,  and  the  validity  and enforceability of the remaining provisions of
this  Agreement  will  not  in  any  way  be  affected  or  impaired  thereby.

     d.  Investor's Obligation to Purchase Shares. Subject to the conditions set
forth  in this Agreement, including the Company's right to cancel any Put Notice
in  accordance  with  the  provisions  of  Section 2(b)(ii), on the Closing Date
related  to  that  particular  Put Notice, following the Investor's receipt of a
validly  delivered  Put  Notice, the Investor shall be required to purchase from
the  Company  during  the  related  Pricing  Period  that

<PAGE>

number  of  Shares having an aggregate Purchase Price equal to the lesser of (i)
the  Put  Amount  set  forth  in  the  Put Notice, and (ii) 25% of the aggregate
trading  volume  of  the Common Stock during the applicable Pricing Period times
(x)  92%  of  the  average  of  the  three  (3) lowest closing bid prices of the
Company's  Common  Stock  during  the specified Pricing Period, but only if said
Shares bear no restrictive legend, are not subject to stop transfer instructions
and  are being held in escrow, pursuant to Section 2(h), prior to the applicable
Closing  Date.

     e.  Limitation on Investor's Obligation to Purchase Shares. Notwithstanding
anything  to  the  contrary in this Agreement, in no event shall the Investor be
required  to  purchase,  and the Company shall in no event sell to the Investor,
that  number  of  Shares,  which  when  added to the sum of the number of Shares
beneficially  owned, (as such term is defined under Section 13(d) and Rule 13d-3
of the Securities Exchange Act of 1934, as may be amended, (the "1934 ACT")), by
the  Investor, would exceed 4.99% of the number of Shares outstanding on the Put
Notice  Date  for  such  Pricing  Period,  as determined in accordance with Rule
13d-1(j) promulgated under the 1934 Act. In no event shall the Investor purchase
Shares of the Common Stock other than pursuant to this Agreement until such date
as  this Agreement is terminated. Each Put Notice shall include a representation
of  the  Company  as  to the number of Shares of Common Stock outstanding on the
related  Put Notice Date. In the event that the number of Shares of Common Stock
outstanding  is different on any date during a Pricing Period than the number of
shares  of  Common Stock outstanding on the Put Notice Date associated with such
Pricing  Period,  then  the number of Shares of Common Stock outstanding on such
date during such Pricing Period shall govern for purposes of determining whether
the  Investor  would be acquiring beneficial ownership of more than 4.99% of the
number  of  Shares  of  Common  Stock  outstanding  during  such  period.

     f.  Conditions to Investor's Obligation to Purchase Shares. Notwithstanding
anything to the contrary in this Agreement, the Company shall not be entitled to
deliver  a  Put  Notice  and  require  the  Investor to purchase any Shares at a
Closing (as defined in Section 2(h)) unless each of the following conditions are
satisfied:

          (i)  a  Registration  Statement shall have been declared effective and
          shall  remain  effective  and  available  for  the  resale  of all the
          Registrable  Securities  (as  defined  in  the  Registration  Rights
          Agreement)  at  all  times  during  the  Pricing  Period;

<PAGE>

          (ii)  at  all  times  during  the  period beginning on the related Put
          Notice  Date and ending on and including the related Closing Date, the
          Common  Stock shall have been listed on the Principal Market and shall
          not  have been suspended from trading thereon for a period of five (5)
          consecutive  Trading Days during the Open Period and the Company shall
          not  have  been  notified  of  any pending or threatened proceeding or
          other  action  to  delist  or  suspend  the  Common  Stock;

          (iii)  the  Company has complied with its obligations and is otherwise
          not  in  breach  of  a  material  provision, or in default under, this
          Agreement,  the  Registration  Rights Agreement or any other agreement
          executed  in connection herewith which has not been corrected prior to
          delivery  of  the  Put  Notice  Date;

          (iv)  no  injunction  shall  have  been issued and remain in force, or
          action commenced by a governmental authority which has not been stayed
          or  abandoned,  prohibiting the purchase or the issuance of the Common
          Stock  pursuant  to  this  Agreement;  and

          (v)  the issuance of the Common Stock will not violate the shareholder
          approval  requirements  of  the  Principal  Market.

          If any of the events described in clauses (i) through (v) above occurs
          during a Pricing Period, then the Investor shall have no obligation to
          purchase  the  Put  Amount of Common Stock set forth in the applicable
          Put  Notice.

     g. For purposes of this Agreement, a "MAJOR TRANSACTION" shall be deemed to
have  occurred  upon  the  closing  of  any  of  the  following  events: (i) the
consolidation,  merger or other business combination of the Company with or into
another  person  (other  than pursuant to a migratory merger effected solely for
the  purposes  of  changing  the jurisdiction of incorporation of the Company or
other than a transaction in which the Company is the surviving corporation) (ii)
the  sale  or  transfer  of all or substantially all of the Company's assets; or
(iii)  the  consummation  of  a  purchase, tender or exchange offer made to, and
accepted  by,  the  holders of more than 30% of the economic interest in, or the
combined  voting  power  of  all  classes  of  voting  stock  of,  the  Company.

     h. Mechanics of Purchase of Shares by Investor. Subject to the satisfaction
of  the  conditions  set  forth  in  Sections  2(f), 7 and 8, the closing of the
purchase  by  the Investor of Shares (a "CLOSING") shall occur on the date which
is  thirteen  (13)  Trading  Days following the applicable Put Notice Date (each
"CLOSING  DATE").  Prior  to each Closing Date, (i) the Company shall deliver to
the  Escrow Agent pursuant to the Escrow Agreement, annexed hereto as Exhibit C,
certificates  representing  the Shares to be issued to the Investor on such date
and  registered  in the name of the Investor and (ii) the Investor shall deliver
to  the  Escrow  Agent  the  Purchase  Price  to  be  paid  for  such  Shares

<PAGE>

(after  receipt  of  confirmation of delivery of such Shares), determined as set
forth  in Section 2(b) and (d), by wire transfer. In lieu of delivering physical
certificates  representing  the  Common  Stock  and  provided that the Company's
transfer  agent  then  is  participating in The Depository Trust Company ("DTC")
Fast  Automated  Securities  Transfer  ("FAST")  program,  upon  request  of the
Investor, the Company shall use its commercially reasonable efforts to cause its
transfer agent to electronically transmit the Shares by crediting the account of
the  Escrow Agent's prime broker (which shall be specified by the Escrow Agent a
reasonably  sufficient  time in advance) with DTC through its Deposit Withdrawal
Agent  Commission  ("DWAC")  system.

     The  Company  understands that a delay in the issuance of Shares beyond the
Closing  Date could result in economic loss to the Investor. After the Effective
Date,  as  compensation to the Investor for such loss, the Company agrees to pay
late  payments  to  the Investor for late issuance of Shares (delivery of Shares
after  the  applicable  Closing  Date) in accordance with the following schedule
(where  "No.  of  Days Late" is defined as the number of days beyond the Closing
Date):

                                             Late  Payment  For  Each
          No.  of  Days  Late               $10,000  of  Common  Stock
          -------------------               --------------------------

$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
Over 10                            $1,000 + $200 for each
                                  Business Day late beyond 100

     The  Company  shall  pay  any  payments  incurred  under  this  Section  in
immediately  available  funds  upon  demand.  Nothing  herein  shall  limit  the
Investor's right to pursue actual damages for the Company's failure to issue and
deliver the Shares to the Investor, except to the extent that such late payments
shall  constitute  payment for and offset any such actual damages alleged by the
Investor,  and  any  Buy  In  Adjustment  Amount.

     i.     Partial  Release  of Shares.       After Investor has received a Put
Notice,  but  prior  to the related Closing Date, the Investor may authorize the
Escrow  Agent to release, every five (5) Trading Days, a portion of the Purchase
Amount  from  escrow  to  the  Company in exchange for a fixed number of Shares,
subject  to  the  following  conditions:

          (i)  The  Investor  shall  fill  out  and  sign  a  Partial Release of
               Purchase  Amount  and  Shares  (the  "Partial Release Form"). The
               Partial  Release  Form shall set forth the number of Shares to be
               released  to

<PAGE>

               Investor and the dollar amount the Escrow Agent shall wire to the
               Company.

          (ii) The  Partial  Release  Form shall be filled out and signed by the
               Investor  and  faxed  to the Company prior to 12:00 p.m. New York
               City  time.

     The  number  of Shares stated in the Partial Release Form shall be equal to
the  dollar amount to be released divided by 92% of the lowest closing bid price
during  that  number  of  Trading  Days of the Pricing Period that have expired.

     The  Company  and  Investor  agree  that  on  the  related Closing Date, an
adjustment  shall be made so that the terms set forth in this Agreement shall be
honored  with  the  balance of the Purchase Amount being released to the Company
and  the  balance of the Shares owed to the Investor being released to Investor.

     j.     Overall  Limit  on  Common  Stock Issuable. Notwithstanding anything
contained  herein to the contrary, if during the Open Period the Company becomes
listed  on an exchange that limits the number of shares of Common Stock that may
be  issued  without  shareholder approval, then the number of Shares issuable by
the  Company  and  purchasable  by  the Investor, including the shares of Common
Stock issuable to the Investors pursuant to Section 11(b), shall not exceed that
number  of  the  shares of Common Stock that may be issuable without shareholder
approval,  subject  to appropriate adjustment for stock splits, stock dividends,
combinations  or  other similar recapitalization affecting the Common Stock (the
"MAXIMUM  COMMON  STOCK ISSUANCE"), unless the issuance of Shares, including any
Common  Stock to be issued to the Investors pursuant to Section 11(b), in excess
of  the  Maximum  Common Stock Issuance shall first be approved by the Company's
shareholders  in  accordance with applicable law and the By-laws and Articles of
Incorporation  of  the Company, if such issuance of shares of Common Stock could
cause a delisting on the Principal Market. The parties understand and agree that
the  Company's  failure  to seek or obtain such shareholder approval shall in no
way adversely affect the validity and due authorization of the issuance and sale
of  Shares  hereunder  or the Investor's obligation in accordance with the terms
and  conditions hereof to purchase a number of Shares in the aggregate up to the
Maximum  Common  Stock Issuance limitation, and that such approval pertains only
to the applicability of the Maximum Common Stock Issuance limitation provided in
this  Section  2(j).

     k.  "VALUATION  EVENT" shall mean an event in which the Company at any time
during  a  "Pricing  Period"  takes  any  of  the  following  actions:

          (i)  subdivides  or  combines  its  Common  Stock;
          (ii) pays  a  dividend in Common Stock or makes any other distribution
               of  its  Common  Stock, except for dividends paid with respect to
               the  Preferred  Stock;
          (iii)issues any options or other rights to subscribe for or purchase
               Common  Stock  ("Options")  and  the  price  per  share for which

<PAGE>

               Common  Stock  may at any time thereafter be issuable pursuant to
               such  Options  shall  be  less  than  the  Bid  Price  in  effect
               immediately  prior  to  such  issuance  of  such  Options;
          (iv) issues any securities convertible into or exchangeable for Common
               Stock  ("Convertible Securities") and the consideration per share
               for  which  shares  of Common Stock may at any time thereafter be
               issuable  pursuant  to  the  terms of such Convertible Securities
               shall  be  less than the Bid Price in effect immediately prior to
               such  issuance  of  the  Convertible  Securities;
          (v)  issues  shares  of Common Stock otherwise than as provided in the
               foregoing  subsections  (i)  through  (iv),  at a price per share
               less,  or  for  other  consideration lower, than the Bid Price in
               effect  immediately  prior  to  such  issuance,  or  without
               consideration;
          (vi) makes  a  distribution of its assets or evidences of indebtedness
               to the holders of Common Stock as a dividend in liquidation or by
               way  of return of capital or other than as a dividend payable out
               of  earnings  or  surplus  legally  available for dividends under
               applicable  law  or  any  distribution  to  such  holders made in
               respect  of the sale of all or substantially all of the Company's
               assets  (other  than  under the circumstances provided for in the
               foregoing  subsections  (i)  through  (v);  or
          (vii)takes any action affecting the number of shares of Common Stock
               outstanding,  other  than  an  action  described  in  any  of the
               foregoing  subsections  (i) through (vi) hereof, inclusive, which
               in the opinion of the Company's Board of Directors, determined in
               good  faith,  would  have  a  materially  adverse effect upon the
               rights  of  Investor  at the time of a Put Notice is delivered to
               Investor.

     l.  The  Company agrees that it shall not take any action that would result
in  a  Valuation  Event  occurring  during  a  Pricing  Period.

     m.  Accountant's  Letter  and  Registration  Opinion.  Whenever  reasonably
requested  by Investor, the Company shall cause to be delivered to the Investor,
on  or  prior to each Registration Opinion Deadline, an opinion of the Company's
independent  counsel,  (the  "REGISTRATION  OPINION"), addressed to the Investor
stating, inter alia, that no material facts ("MATERIAL FACTS") have come to such
counsel's  attention  that  have  caused  it  to  believe  that the Registration
Statement  is  subject  to  an  Ineffective  Period  or  to  believe  that  the
Registration  Statement, any supplemental Registration Statement (as each may be
amended,  if  applicable),  and  any  related  prospectuses,  contain  an untrue
statement  of  material  fact  or  omits  a  material  fact required to make the
statements  contained  therein,  in  light of the circumstances under which they
were  made, not misleading. If a Registration Opinion cannot be delivered by the
Company's  independent  counsel  to  the  Investor  on  the Registration Opinion
Deadline  due  to  the existence of Material Facts or an Ineffective Period, the
Company  shall  promptly  notify

<PAGE>

the  Investor  and  as  promptly  as  possible  amend  each  of the Registration
Statement  and  any supplemental Registration Statements, as applicable, and any
related  prospectus  or  cause such Ineffective Period to terminate, as the case
may  be, and deliver such Registration Opinion and updated prospectus as soon as
possible thereafter. If at any time after a Put Notice shall have been delivered
to  Investor but before the related Closing Date, the Company acquires knowledge
of  such  Material  Facts  or  any  Ineffective Period occurs, the Company shall
promptly  notify  the  Investor.

     n.  (i) Whenever reasonably requested by Investor, the Company shall engage
its  independent  auditors  to  perform  the  procedures  in accordance with the
provisions  of  Statement on Auditing Standards No. 71, as amended, as agreed to
by  the  parties  hereto,  and  reports  thereon  (the  "BRING DOWN COLD COMFORT
LETTERS")  as  shall have been reasonably requested by the Investor with respect
to  certain  financial  information  contained in the Registration Statement and
shall have delivered to the Investor such a report addressed to the Investor, on
or  prior  to  each  Registration  Opinion  Deadline;

     (ii)  in  the  event  that the Investor shall have requested delivery of an
Agreed Upon Procedures Report pursuant to Section 2(o), the Company shall engage
its  independent  auditors  to perform certain agreed upon procedures and report
thereon  as shall have been reasonably requested by the Investor with respect to
certain  financial  information of the Compa(ny and the Company shall deliver to
the  Investor a copy of such report addressed to the Investor. In the event that
the  report  required  by this Section 2(n) cannot be delivered by the Company's
independent  auditors,  the  Company  shall,  if  necessary, promptly revise the
Registration  Statement  and  the  Company  shall  not  deliver  a Put Notice to
Investor  until  such  report  is  delivered.

     o.  Procedure if Material Facts are Reasonably believed to be untrue or are
omitted.  In  the  event  after such consultation the Investor or the Investor's
counsel  reasonably  believes that the Registration Statement contains an untrue
statement  or  a material fact or omits a material fact required to be stated in
the  Registration  Statement  or  necessary  to  make  the  statements contained
therein,  in light of the circumstances in which they were made, not misleading,
(i)  the  Company  shall  file  with  the  SEC  an amendment to the Registration
Statement  responsive  to  such alleged untrue statement or omission and provide
the  Investor,  as  promptly  as  practicable,  with  copies of the Registration
Statement and related Prospectus, as so amended, or (ii) if the Company disputes
the  existence  of any such material misstatement or omission, (x) the Company's
independent  counsel  shall  provide  the Investor's counsel with a Registration
Opinion  and  (y)  in the event the dispute relates to the adequacy of financial
disclosure  and the Investor shall reasonably request, the Company's independent
auditors shall provide to the Company a letter ("AGREED UPON PROCEDURES REPORT")
outlining  the  performance  of  such  "agreed upon procedures," which shall not
require  any  more than the SAS 71 review described above as shall be reasonably
requested by the Investor and the Company shall provide the Investor with a copy
of  such  letter.

     p.  Delisting; Suspension.  If at any time during the Open Period or within
thirty (30) calendar days after the end of the Open Period, (i) the Registration
Statement,

<PAGE>

after  it  has been declared effective, shall not remain effective and available
for  sale  of  all the Registrable Securities for a period exceeding 10 calendar
days, (ii) the Common Stock shall not be listed on the Principal Market or shall
have been suspended from trading thereon (excluding suspensions of not more than
one  trading  day  resulting  from business announcements by the Company) or the
Company  shall  have  been  notified  of any pending or threatened proceeding or
other  action  to  delist  or  suspend  the Common Stock, (iii) there shall have
occurred  a  Major  Transaction  (as  defined  in  Section  2(g))  or the public
announcement  of  a  pending  Major  Transaction which has not been abandoned or
terminated,  or  (iv) the Registration Statement is no longer effective or stale
for  a  period  of  more than five (5) Trading Days as a result of the Company"s
failure  to  timely  file its financial statements, the Company shall repurchase
within  thirty  (30) calendar days of the occurrence of one of the events listed
in clauses (i), (ii), (iii) or (iv)above (each a "REPURCHASE EVENT") and subject
to  the limitations imposed by applicable federal and state law, all or any part
of  the  Shares  issued  to  the  Investor  within  the  sixty (60) Trading Days
preceding  the  occurrence of the Repurchase Event and then held by the Investor
at  a  price per Share equal to the highest Volume Weighted Average Price during
the  period  beginning  on  the  date  of the Repurchase Event and ending on and
including  the  date  on  which  the  Investor  is  paid  by the Company for the
repurchase  of the Shares (the "PAYMENT AMOUNT"). If the Company fails to pay to
the  Investor the full aggregate Payment Amount within ten (10) calendar days of
the  occurrence of a Repurchase Event, the Company shall pay to the Investor, on
the  first  Trading Day following such tenth (10th) calendar day, in addition to
and  not in lieu of the Payment Amount payable by the Company to the Investor an
amount  equal  to 2% of the aggregate Payment Amount then due and payable to the
Investor,  in  cash  by wire transfer, plus compounded annual interest of 18% on
such Payment Amount during the period, beginning on the day following such tenth
calendar  day,  during  which  such  Payment  Amount, or any portion thereof, is
outstanding.

     3.  INVESTOR'S  REPRESENTATIONS,  WARRANTIES  AND  COVENANTS.

     The  Investor  represents and warrants to the Company, and covenants, that:

     a.  Sophisticated Investor. The Investor has, by reason of its business and
financial experience, such knowledge, sophistication and experience in financial
and  business matters and in making investment decisions of this type that it is
capable  of  (A)  evaluating the merits and risks of an investment in the Shares
and  making an informed investment decision, (B) protecting its own interest and
(C)  bearing  the  economic  risk of such investment for an indefinite period of
time
     b.  Authorization;  Enforcement.  This  Agreement has been duly and validly
authorized,  executed and delivered on behalf of the Investor and is a valid and
binding agreement of the Investor enforceable against the Investor in accordance
with its terms, subject as to enforceability to general principles of equity and
to  applicable  bankruptcy,  insolvency, reorganization, moratorium, liquidation
and  other  similar laws relating to, or affecting generally, the enforcement of
applicable  creditors'  rights  and  remedies

<PAGE>

     c.  Section  9  of  the 1934 Act. During the Open Period, the Investor will
comply  with  the  provisions  of  Section  9  of  the  1934  Act, and the rules
promulgated thereunder, with respect to transactions involving the Common Stock.
The  Investor  also agrees that so long as this Agreement is in effect, it shall
not  sell  any  Shares  of  Common Stock "short," either directly or indirectly,
through  any  affiliate,  subsidiary,  or  other  third party; provided that the
foregoing  prohibition  shall  not apply to any Shares that are the subject of a
Put  Notice  following  receipt  by  the  Investor  of  that Put Notice from the
Company.

     d.  Accredited  Investor.  Investor  is  an  "Accredited Investor" as that
term  is  defined  in  Rule  501(a)(3)  of  Regulation  D  of  the  1933  Act.

     e. No Conflicts. The execution, delivery and performance of the Transaction
Documents  by  the  Investor  and  the  consummation  by  the  Investor  of  the
transactions  contemplated hereby and thereby will not (i) result in a violation
of  the Articles of Incorporation, the By-laws or other organizational documents
of  the  Investor;  (ii)  conflict with, or constitute a material default (or an
event  which  with  notice  or  lapse  of  time  or both would become a material
default)  under,  or  give  to  others  any  rights  of  termination, amendment,
acceleration  or  cancellation  of, any material agreement, contract, indenture,
mortgage,  indebtedness  or  instrument  to  which  the  Investor  or any of its
Subsidiaries  is a party, or result in a violation of any law, rule, regulation,
order,  judgment or decree applicable to the Investor or any of its Subsidiaries
or  by which any property or asset of the Investor or any of its Subsidiaries is
bound  or  affected.  The  business  of the Investor and its Subsidiaries is not
being  conducted,  and shall not be conducted, in violation of any law, statute,
ordinance,  rule,  order  or regulation of any governmental authority or agency,
regulatory  or  self-regulatory agency, or court, except for possible violations
the sanctions for which either individually or in the aggregate would not have a
Material  Adverse  Effect.

     f.  The  Investor  further  understands  that,  except  as  provided in the
Registration  Rights  Agreement, the Company will have no obligation to register
the Shares under the 1933 Act or any state securities laws or to take any action
that  would  make  available any exemption from the registration requirements of
such laws. The Investor hereby acknowledges that, because of the restrictions on
transfer  and  assignment  of  the  Shares,  the  Investor  may have to bear the
economic  risk of the investment in the Shares for an indefinite period of time.
The  Investor  further

<PAGE>

understands  that  the  certificates  representing  the  Shares  will  bear  the
following  legend  and  agrees  to  hold  such  Shares  subject  to such legend:

                        "THE  SECURITIES  EVIDENCED  BY  THIS
                        CERTIFICATE  HAVE  NOT  BEEN  REGISTERED
                        UNDER  THE  SECURITIES  ACT  OF 1933, AS
                        AMENDED  (THE  "SECURITIES  ACT"),  NOR
                        REGISTERED  UNDER THE SECURITIES LAWS OF
                        ANY STATE OR JURISDICTION, AND HAVE BEEN
                        TAKEN  FOR  INVESTMENT PURPOSES ONLY AND
                        NOT  WITH  A  VIEW  TO  THE DISTRIBUTION
                        THEREOF,  AND,  EXCEPT  AS  STATED IN AN
                        AGREEMENT  BETWEEN  THE  HOLDER  OF THIS
                        CERTIFICATE,  OR  ITS  PREDECESSOR  IN
                        INTEREST,  AND  THE  ISSUER CORPORATION,
                        SUCH  SECURITIES  MAY  NOT  BE  SOLD  OR
                        TRANSFERRED UNLESS THERE IS AN EFFECTIVE
                        REGISTRATION  STATEMENT  UNDER  SUCH ACT
                        COVERING  SUCH  SECURITIES OR THE ISSUER
                        CORPORATION  RECEIVES  AN  OPINION  OF
                        COUNSEL  (WHICH  MAY  BE COUNSEL FOR THE
                        ISSUER  CORPORATION),  WHICH OPINION AND
                        COUNSEL  ARE  REASONABLY SATISFACTORY TO
                        THE  ISSUER  CORPORATION,  STATING  THAT
                        SUCH SALE OR TRANSFER IS EXEMPT FROM THE
                        REGISTRATION  AND  PROSPECTUS  DELIVERY
                        REQUIREMENTS  OF  SUCH  ACT."

The  requirement  that  the  above securities legend be placed upon certificates
evidencing  the  Shares  shall  cease  and  terminate  upon  the earliest of the
following events: (i) when such Shares are transferred in an underwritten public
offering  pursuant  to  Section  5  of  the  1933 Act; (ii) when such Shares are
transferred  pursuant  to  Rule  144  under  the Securities Act; (iii) when such
Shares  are  transferred  in any other transaction if the seller delivers to the
Company  an  opinion  of  seller's  counsel to the effect that such legend is no
longer  necessary  in  order to protect the Company against a violation by it of
the  1933  Act  upon  any  sale  or  other  disposition  of  such Shares without
registration thereunder or (iv) the date the Shares are registered.

     The Investor has had an opportunity to discuss the business, management and
financial  affairs of the Company with the Company's management; The Investor is
purchasing the Shares for its own account for investment purposes and not with a
view  towards  distribution

<PAGE>

and  has  no  present  arrangement  or  intention  to sell the Shares; provided,
however,  that by making the representations herein, the Investor does not agree
to  hold  any  of the Shares for any minimum or other specific term and reserves
the right to dispose of the Shares at any time in accordance with or pursuant to
a  registration  statement or an exemption under applicable state and/or federal
securities  law;

     The  Investor  understands  that,  except  for  transfers  to affiliates or
in-kind  distributions  to  the  respective  legal  or  beneficial owners of the
Investor,  if  any,  the  Shares  must  be held indefinitely unless a subsequent
disposition  thereof  is  registered  under the Securities Act or is exempt from
such  registration;

     The  Shareholder  does  not have a present need for liquidity in connection
with  its  purchase  of  the  Shares;  and

The  purchase of the Shares is consistent with the general investment objectives
of  the  Investor,  whcih understands that the purchase of the Shares involves a
high degree of risk in view of the fact that, among other things, the Company is
an  early  stage  enterprise, and there is a very limited trading market for the
Shares.

     4.     REPRESENTATIONS  AND  WARRANTIES  OF  THE  COMPANY.

     Except  as  set  forth  in  the  Schedules  attached  hereto,  the  Company
represents  and  warrants  to  the  Investor  that:

     a.     Organization  and  Qualification.  The Company is a corporation duly
organized  and  validly  existing  in  good  standing  under  the  laws  of  its
jurisdiction, and has the requisite corporate power and authorization to own its
properties  and  to  carry  on  its business as now being conducted. Each of the
Company  and  its  Subsidiaries is duly qualified as a foreign corporation to do
business and is in good standing in every jurisdiction in which its ownership of
property  or the nature of the business conducted by it makes such qualification
necessary,  except  to  the  extent that the failure to be so qualified or be in
good  standing  would  not  have  a  Material  Adverse  Effect.  As used in this
Agreement,  "MATERIAL  ADVERSE  EFFECT" means any material adverse effect on the
business,  properties,  assets,  operations,  results  of  operations, financial
condition  or  prospects of the Company and its Subsidiaries, if any, taken as a
whole,  or  on  the  transactions  contemplated  hereby or by the agreements and
instruments  to  be  entered into in connection herewith, or on the authority or
ability  of  the  Company  to  perform  its  obligations  under  the Transaction
Documents  (as  defined  in  Section  1  and  4(b)below).  The  Company  has  no
subsidiaries.

     b.     Authorization;  Enforcement; Compliance with Other Instruments.  (i)
The  Company  has  the requisite corporate power and authority to enter into and
perform  this Agreement, the Registration Rights Agreement, the Escrow Agreement
and  each  of  the  other  agreements  entered  into  by  the  parties hereto in
connection  with  the transactions contemplated by this Agreement (collectively,
the  "TRANSACTION  DOCUMENTS"),  and  to issue the Shares in accordance with the
terms  hereof  and  thereof,  (ii) the execution and delivery of the Transaction
Documents  by  the  Company  and  the  consummation  by  it

<PAGE>

of  the  transactions  contemplated  hereby  and  thereby,  including  without
limitation  the reservation for issuance and the issuance of the Shares pursuant
to  this Agreement, have been duly and validly authorized by the Company's Board
of Directors and no further consent or authorization is required by the Company,
its  Board  of  Directors,  or its shareholders, (iii) the Transaction Documents
have  been  duly and validly executed and delivered by the Company, and (iv) the
Transaction  Documents  constitute  the  valid  and  binding  obligations of the
Company  enforceable  against the Company in accordance with their terms, except
as  such  enforceability  may  be  limited  by  general  principles of equity or
applicable  bankruptcy,  insolvency,  reorganization, moratorium, liquidation or
similar  laws relating to, or affecting generally, the enforcement of creditors'
rights  and  remedies.

     c.     Capitalization.  As of the date hereof, the authorized capital stock
of the Company consists of (i) 25,000,000 shares of Common Stock, of which as of
the date hereof, 11,149,284 shares are issued and outstanding, 150,000 shares of
Preferred  Stock,  of  which  50,000  shares  are  issued  and  outstanding  and
approximately  [598,000]  (as  of  June  24,  2002)  shares  of Common Stock are
issuable  upon  the exercise of options, warrants and conversion rights.  All of
such  outstanding shares have been, or upon issuance will be, validly issued and
are fully paid and nonassessable.  Except as disclosed in Schedule 4(c) which is
attached  hereto  and made a part hereof, (i) no shares of the Company's capital
stock  are subject to preemptive rights or any other similar rights or any liens
or  encumbrances  suffered  or  permitted  by  the  Company,  (ii)  there are no
outstanding  debt  securities,  (iii) there are no outstanding shares of capital
stock, options, warrants, scrip, rights to subscribe to, calls or commitments of
any  character whatsoever relating to, or securities or rights convertible into,
any  shares  of  capital  stock  of  the  Company or any of its Subsidiaries, or
contracts,  commitments,  understandings or arrangements by which the Company or
any  of  its  Subsidiaries  is or may become bound to issue additional shares of
capital  stock  of  the Company or any of its Subsidiaries or options, warrants,
scrip,  rights to subscribe to, calls or commitments of any character whatsoever
relating  to,  or  securities  or rights convertible into, any shares of capital
stock of the Company or any of its Subsidiaries, (iv) there are no agreements or
arrangements  under which the Company or any of its Subsidiaries is obligated to
register  the  sale  of  any  of their securities under the 1933 Act (except the
Registration  Rights  Agreement), (v) there are no outstanding securities of the
Company  or  any  of  its  Subsidiaries  which contain any redemption or similar
provisions,  and  there  are  no  contracts,  commitments,  understandings  or
arrangements  by  which  the Company or any of its Subsidiaries is or may become
bound to redeem a security of the Company or any of its Subsidiaries, (vi) there
are  no securities or instruments containing anti-dilution or similar provisions
that  will  be  triggered by the issuance of the Securities as described in this
Agreement,  (vii)  the  Company  does  not have any stock appreciation rights or
"phantom  stock" plans or agreements or any similar plan or agreement and (viii)
there  is  no  dispute  as  to  the class of any shares of the Company's capital
stock. The Company has furnished to the Investor, or the Investor has had access
through  EDGAR  to,  true  and  correct  copies  of  the  Company's  Articles of
Incorporation,  as  in  effect  on  the  date  hereof  (the  "ARTICLES  OF
INCORPORATION"), and the Company's By-laws, as in effect on the date hereof (the
"BY-LAWS '), and the terms of all securities convertible into or exercisable for
Common  Stock and the material rights of the holders thereof in respect thereto.

<PAGE>

     d.     Issuance  of  Shares.     A  sufficient  number  of  Shares issuable
pursuant  to  this  Agreement has been duly authorized and reserved for issuance
(subject  to  adjustment pursuant to the Company's covenant set forth in Section
5(f)  below)  pursuant to this Agreement.  Upon issuance in accordance with this
Agreement,  the  Securities will be validly issued, fully paid and nonassessable
and free from all taxes, liens and charges with respect to the issue thereof. In
the  event the Company cannot register a sufficient number of Shares, due to the
remaining  number  of  authorized shares of Common Stock being insufficient, the
Company  will  use  its best efforts to register the maximum number of shares it
can  based  on  the remaining balance of authorized shares and will use its best
efforts  to  increase  the number of its authorized shares as soon as reasonably
practicable.

     e.     No  Conflicts.  The  execution,  delivery  and  performance  of  the
Transaction  Documents by the Company and the consummation by the Company of the
transactions  contemplated hereby and thereby will not (i) result in a violation
of  the  Articles of Incorporation, any Certificate of Designations, Preferences
and  Rights  of  any outstanding series of preferred stock of the Company or the
By-laws  or  (ii)  conflict  with, or constitute a material default (or an event
which  with  notice  or  lapse  of time or both would become a material default)
under,  or  give to others any rights of termination, amendment, acceleration or
cancellation  of,  any  material  agreement,  contract,  indenture  mortgage,
indebtedness  or instrument to which the Company or any of its Subsidiaries is a
party, or result in a violation of any law, rule, regulation, order, judgment or
decree  (including  United  States  federal  and  state  securities  laws  and
regulations  and  the rules and regulations of the Principal Market or principal
securities  exchange  or  trading  market on which the Common Stock is traded or
listed)  applicable  to  the  Company or any of its Subsidiaries or by which any
property  or  asset  of  the  Company  or  any  of  its Subsidiaries is bound or
affected.  Except  as  disclosed  in  Schedule 4(e), neither the Company nor its
Subsidiaries  is  in violation of any term of, or in default under, the Articles
of Incorporation, any Certificate of Designations, Preferences and Rights of any
outstanding  series  of  preferred  stock of the Company or the By-laws or their
organizational  charter  or  by-laws,  respectively, or any contract, agreement,
mortgage,  indebtedness, indenture, instrument, judgment, decree or order or any
statute,  rule  or  regulation  applicable  to  the Company or its Subsidiaries,
except  for  possible  conflicts,  defaults,  terminations,  amendments,
accelerations,  cancellations  and  violations that would not individually or in
the  aggregate  have  a Material Adverse Effect. The business of the Company and
its  Subsidiaries  is  not  being  conducted,  and  shall  not  be conducted, in
violation  of  any  law,  statute,  ordinance,  rule, order or regulation of any
governmental  authority  or  agency,  regulatory  or  self-regulatory agency, or
court,  except  for  possible  violations  the  sanctions  for  which  either
individually  or  in  the  aggregate  would  not have a Material Adverse Effect.
Except  as specifically contemplated by this Agreement and as required under the
1933  Act,  the  Company  is  not required to obtain any consent, authorization,
permit  or  order of, or make any filing or registration (except the filing of a
registration  statement)  with,  any  court,  governmental  authority or agency,
regulatory  or  self-regulatory  agency  or other third party in order for it to
execute,  deliver  or  perform any of its obligations under, or contemplated by,
the  Transaction  Documents  in accordance with the terms hereof or thereof. All
consents,  authorizations,  permits,  orders,  filings  and  registrations

<PAGE>

which  the Company is required to obtain pursuant to the preceding sentence have
been  obtained  or effected on or prior to the date hereof and are in full force
and  effect  as  of  the  date hereof. Except as disclosed in Schedule 4(e), the
Company  and  its  Subsidiaries  are unaware of any facts or circumstances which
might give rise to any of the foregoing. The Company is not, and will not be, in
violation  of  the  listing requirements of the Principal Market as in effect on
the  date  hereof and on each of the Closing Dates and is not aware of any facts
which  would  reasonably  lead to delisting of the Common Stock by the Principal
Market  in  the  foreseeable  future.

     f.     SEC  Documents;  Financial  Statements.  Since  January  2001,  the
Company  has filed all reports, schedules, forms, statements and other documents
required  to  be filed by it with the SEC pursuant to the reporting requirements
of  the  1934  Act  (all of the foregoing filed prior to the date hereof and all
exhibits  included  therein  and  financial statements and schedules thereto and
documents incorporated by reference therein being hereinafter referred to as the
"SEC  DOCUMENTS").  The  Company  has  delivered  to  the  Investor  or  its
representatives, or they have had access through EDGAR, true and complete copies
of  the  SEC Documents. As of their respective dates, the SEC Documents complied
in all material respects with the requirements of the 1934 Act and the rules and
regulations  of  the SEC promulgated thereunder applicable to the SEC Documents,
and  none  of  the  SEC  Documents,  at  the  time they were filed with the SEC,
contained any untrue statement of a material fact or omitted to state a material
fact  required to be stated therein or necessary to make the statements therein,
in  light of the circumstances under which they were made, not misleading. As of
their  respective dates, the financial statements of the Company included in the
SEC  Documents  complied  as  to  form  in all material respects with applicable
accounting  requirements and the published rules and regulations of the SEC with
respect thereto. Such financial statements have been prepared in accordance with
generally  accepted  accounting  principles,  consistently  applied,  during the
periods  involved  (except  (i)  as may be otherwise indicated in such financial
statements  or  the  notes  thereto,  or  (ii)  in the case of unaudited interim
statements,  to  the  extent  they  may exclude footnotes or may be condensed or
summary  statements)  and  fairly present in all material respects the financial
position  of  the  Company  as  of  the  dates  thereof  and  the results of its
operations  and  cash  flows for the periods then ended (subject, in the case of
unaudited  statements,  to  normal year-end audit adjustments). No other written
information provided by or on behalf of the Company to the Investor which is not
included  in  the  SEC  Documents,  including,  without  limitation, information
referred  to in Section 4(d) of this Agreement, contains any untrue statement of
a  material  fact  or  omits  to  state  any material fact necessary to make the
statements  therein,  in  the  light of the circumstance under which they are or
were  made,  not  misleading. Neither the Company nor any of its Subsidiaries or
any of their officers, directors, employees or agents have provided the Investor
with  any material, nonpublic information which was not publicly disclosed prior
to  the  date  hereof  and  any  material, nonpublic information provided to the
Investor by the Company or its Subsidiaries or any of their officers, directors,
employees or agents prior to any Closing Date shall be publicly disclosed by the
Company  prior  to  such  Closing  Date.

<PAGE>

     g.     Absence  of  Certain  Changes.  As  disclosed  in  Schedule 4(g) the
Company  intends  to change the business operations of the Company.  The Company
has  not  taken  any  steps, and does not currently expect to take any steps, to
seek  protection  pursuant  to  any  bankruptcy  law nor does the Company or its
Subsidiaries  have  any knowledge or reason to believe that its creditors intend
to  initiate  involuntary  bankruptcy  proceedings.

     h.     Absence  of Litigation.  Except as set forth in Schedule 4(h), there
is no action, suit, proceeding, inquiry or investigation before or by any court,
public  board,  government  agency, self-regulatory organization or body pending
or,  to  the  knowledge  of  the  executive  officers  of  Company or any of its
Subsidiaries,  threatened  against or affecting the Company, the Common Stock or
any  of  the  Company's  Subsidiaries  or  any of the Company's or the Company's
Subsidiaries'  officers  or  directors  in their capacities as such, in which an
adverse  decision  could  have  a  Material  Adverse  Effect.

     i.     Acknowledgment Regarding Investor's Purchase of Shares.  The Company
acknowledges  and  agrees  that the Investor is acting solely in the capacity of
arm's  length  purchaser  with  respect  to  the  Transaction  Documents and the
transactions  contemplated  hereby and thereby. The Company further acknowledges
that  the  Investor  is  not  acting as a financial advisor or fiduciary  of the
Company  (or  in any similar capacity) with respect to the Transaction Documents
and the transactions contemplated hereby and thereby and any advice given by the
Investor  or  any of its respective representatives or agents in connection with
the  Transaction  Documents and the transactions contemplated hereby and thereby
is  merely  incidental to the Investor's purchase of the Securities. The Company
further represents to the Investor that the Company's decision to enter into the
Transaction Documents has been based solely on the independent evaluation by the
Company  and  its  representatives.

     j.     No  Undisclosed  Events, Liabilities, Developments or Circumstances.
Since  July  20,  2002,  no  event,  liability,  development or circumstance has
occurred  or  exists, or to its knowledge is contemplated to occur, with respect
to  the  Company  or  its Subsidiaries or their respective business, properties,
assets,  prospects, operations or financial condition, that would be required to
be  disclosed  by the Company under applicable securities laws on a registration
statement  filed with the SEC relating to an issuance and sale by the Company of
its  Common  Stock  and  which  has  not  been  publicly  announced.

     k.     Employee Relations.  Neither the Company nor any of its Subsidiaries
is  involved  in any union labor dispute nor, to the knowledge of the Company or
any of its Subsidiaries, is any such dispute threatened. Neither the Company nor
any of its Subsidiaries is a party to a collective bargaining agreement, and the
Company  and  its  Subsidiaries  believe that relations with their employees are
good.  No  executive  officer  (as  defined  in Rule 501(f) of the 1933 Act) has
notified  the Company that such officer intends to leave the Company's employ or
otherwise  terminate  such  officer's  employment  with  the  Company.

<PAGE>

     l.     Intellectual  Property Rights.  The Company and its Subsidiaries own
or  possess  adequate  rights  or  licenses  to use all trademarks, trade names,
service  marks,  service  mark  registrations,  service  names,  patents, patent
rights,  copyrights,  inventions,  licenses,  approvals,  governmental
authorizations,  trade  secrets and rights necessary to conduct their respective
businesses  as  now conducted. Except as set forth on Schedule 4(l), none of the
Company's  trademarks,  trade  names, service marks, service mark registrations,
service  names,  patents,  patent  rights,  copyrights,  inventions,  licenses,
approvals,  government  authorizations,  trade  secrets  or  other  intellectual
property  rights  necessary  to conduct its business as now or as proposed to be
conducted  have  expired  or  terminated, or are expected to expire or terminate
within  two  years  from  the  date  of  this  Agreement.  The  Company  and its
Subsidiaries do not have any knowledge of any infringement by the Company or its
Subsidiaries  of  trademark,  trade  name  rights,  patents,  patent  rights,
copyrights,  inventions,  licenses,  service  names, service marks, service mark
registrations,  trade  secret  or other similar rights of others, or of any such
development  of  similar  or identical trade secrets or technical information by
others  and,  except as set forth on Schedule 4(l), there is no claim, action or
proceeding  being  made or brought against, or to the Company's knowledge, being
threatened  against,  the Company or its Subsidiaries regarding trademark, trade
name,  patents,  patent  rights,  invention,  copyright, license, service names,
service  marks,  service mark registrations, trade secret or other infringement;
and  the  Company and its Subsidiaries are unaware of any facts or circumstances
which  might give rise to any of the foregoing. The Company and its Subsidiaries
have  taken reasonable security measures to protect the secrecy, confidentiality
and  value  of  all  of  their  intellectual  properties.

     m.     Environmental  Laws.  The  Company  and  its Subsidiaries (i) are in
compliance  with  any  and all applicable foreign, federal, state and local laws
and  regulations  relating  to  the  protection  of human health and safety, the
environment  or  hazardous  or  toxic  substances  or  wastes,  pollutants  or
contaminants ("ENVIRONMENTAL LAWS"), (ii) have received all permits, licenses or
other  approvals required of them under applicable Environmental Laws to conduct
their  respective  businesses  and  (iii)  are  in compliance with all terms and
conditions  of  any such permit, license or approval where, in each of the three
foregoing  cases,  the  failure  to so comply would have, individually or in the
aggregate,  a  Material  Adverse  Effect.

     n.     Title.  The  Company  and  its Subsidiaries have good and marketable
title  in  fee  simple to all real property and good and marketable title to all
personal property owned by them which is material to the business of the Company
and its Subsidiaries, in each case free and clear of all liens, encumbrances and
defects  except  such  as  are  described  in  Schedule  4(n)  or such as do not
materially  affect  the value of such property and do not interfere with the use
made  and  proposed  to  be  made  of such property by the Company or any of its
Subsidiaries.  Any  real property and facilities held under lease by the Company
or  any  of  its  Subsidiaries  are  held  by  them  under valid, subsisting and
enforceable leases with such exceptions as are not material and do not interfere
with  the use made and proposed to be made of such property and buildings by the
Company  and  its  Subsidiaries.

<PAGE>

     o.     Insurance.  The  Company and each of its Subsidiaries are insured by
insurers  of  recognized  financial responsibility against such losses and risks
and  in  such  amounts  as  management of the Company believes to be prudent and
customary  in  the  businesses  in  which  the  Company and its Subsidiaries are
engaged.  Neither  the  Company  nor  any  such  Subsidiary has been refused any
insurance  coverage  sought  or applied for and neither the Company nor any such
Subsidiary  has  any  reason  to  believe  that it will not be able to renew its
existing  insurance  coverage  as  and  when  such coverage expires or to obtain
similar  coverage  from  similar  insurers  as  may be necessary to continue its
business  at  a  cost  that  would  not  have  a  Material  Adverse  Effect.

     p.     Regulatory  Permits.  The  Company and its Subsidiaries have in full
force  and  effect  all certificates, approvals, authorizations and permits from
the  appropriate  federal,  state,  local  or foreign regulatory authorities and
comparable foreign regulatory agencies, necessary to own, lease or operate their
respective  properties  and  assets and conduct their respective businesses, and
neither  the  Company  nor  any  such  Subsidiary  has  received  any  notice of
proceedings  relating to the revocation or modification of any such certificate,
approval,  authorization  or  permit,  except  for such certificates, approvals,
authorizations  or  permits  which  if  not  obtained,  or  such  revocations or
modifications  which,  would  not  have  a  Material  Adverse  Effect.

     q.     Internal  Accounting  Controls.  The  Company  and  each  of  its
Subsidiaries  maintain  a  system  of internal accounting controls sufficient to
provide  reasonable  assurance  that (i) transactions are executed in accordance
with  management's  general  or  specific  authorizations, (ii) transactions are
recorded  as  necessary  to  permit  preparation  of  financial  statements  in
conformity  with  generally accepted accounting principles and to maintain asset
accountability,  (iii)  access  to  assets  is permitted only in accordance with
management's  general  or  specific  authorization  and  (iv)  the  recorded
accountability  for  assets  is  compared with the existing assets at reasonable
intervals  and  appropriate  action  is  taken  with respect to any differences.

     r.     No  Materially  Adverse Contracts, Etc.  Neither the Company nor any
of  its  Subsidiaries  is  subject  to  any  charter,  corporate  or other legal
restriction,  or  any  judgment,  decree, order, rule or regulation which in the
judgment  of  the  Company's officers has or is expected in the future to have a
Material  Adverse  Effect.  Neither the Company nor any of its Subsidiaries is a
party  to  any  contract  or  agreement  which  in the judgment of the Company's
officers  has  or  is  expected  to  have  a  Material  Adverse  Effect.

     s.     Tax  Status.  The  Company  and each of its Subsidiaries has made or
filed  all  United  States  federal  and state income and all other tax returns,
reports  and  declarations  required  by any jurisdiction to which it is subject
(unless and only to the extent that the Company and each of its Subsidiaries has
set  aside  on  its  books provisions reasonably adequate for the payment of all
unpaid  and  unreported  taxes)  and  has  paid all taxes and other governmental
assessments  and  charges that are material in amount, shown or determined to be
due  on  such returns, reports and declarations, except those being contested in
good  faith and has set aside on its books provision reasonably adequate for the
payment  of  all  taxes  for  periods  subsequent  to  the periods to which such

<PAGE>

returns,  reports  or  declarations  apply.  There  are  no  unpaid taxes in any
material  amount  claimed to be due by the taxing authority of any jurisdiction,
and  the  officers  of  the  Company  know  of  no  basis  for  any  such claim.

     t.     Certain  Transactions.  Except  as set forth on Schedule 4(t) and in
the  SEC  Documents  filed at least ten days prior to the date hereof and except
for  arm's  length  transactions pursuant to which the Company makes payments in
the  ordinary  course  of business upon terms no less favorable than the Company
could  obtain  from  third  parties  and  other  than the grant of stock options
disclosed on Schedule 4(c), none of the officers, directors, or employees of the
Company  is  presently a party to any transaction with the Company or any of its
Subsidiaries  (other  than  for  services as employees, officers and directors),
including  any  contract,  agreement  or  other  arrangement  providing  for the
furnishing  of  services  to  or  by,  providing  for rental of real or personal
property  to  or  from,  or otherwise requiring payments to or from any officer,
director  or such employee or, to the knowledge of the Company, any corporation,
partnership,  trust  or other entity in which any officer, director, or any such
employee  has  a  substantial  interest  or  is an officer, director, trustee or
partner.

     u.     Dilutive  Effect.  The Company understands and acknowledges that the
number  of  shares  of  Common  Stock  issuable  upon purchases pursuant to this
Agreement  will increase in certain circumstances including, but not necessarily
limited  to,  the  circumstance  wherein  the  trading price of the Common Stock
declines  during  the  period between the Effective Date and the end of the Open
Period.  The  Company's  executive officers and directors have studied and fully
understand  the  nature  of  the transactions contemplated by this Agreement and
recognize that they have a potential dilutive effect.  The board of directors of
the  Company  has  concluded,  in  its  good  faith business judgment, that such
issuance  is  in  the  best  interests of the Company.  The Company specifically
acknowledges that, subject to such limitations as are expressly set forth in the
Transaction  Documents,  its  obligation  to  issue  shares of Common Stock upon
purchases pursuant to this Agreement is absolute and unconditional regardless of
the  dilutive  effect  that such issuance may have on the ownership interests of
other  shareholders  of  the  Company.

     v.  Right  of First Refusal. The Company shall not, directly or indirectly,
without  the  prior written consent of Investor offer, sell, grant any option to
purchase,  or  otherwise  dispose  of (or announce any offer, sale, grant or any
option  to  purchase or other disposition) any of its Common Stock or securities
convertible  into  Common Stock at a price that is less than the market price of
the  Common  Stock  at  the  time  of issuance of such security or investment (a
"SUBSEQUENT  FINANCING")  for  a  period  of  one year after the Effective Date,
except (i) the granting of options or warrants to employees, officers, directors
and  consultants,  and  the issuance of shares upon exercise of options granted,
under  any  stock  option  plan  heretofore  or  hereinafter duly adopted by the
Company,  (ii) shares issued upon exercise of any currently outstanding warrants
or  options  and  upon  conversion  of  any  currently  outstanding  convertible
debenture  or  convertible  preferred  stock, in each case disclosed pursuant to
Section  4(c),  (iii) securities issued in connection with the capitalization or
creation  of  a  joint  venture  with  a  strategic

<PAGE>

partner,  (iv)  shares  issued  to pay part or all of the purchase price for the
acquisition by the Company of another entity (which, for purposes of this clause
(iv),  shall  not include an individual or group of individuals), and (v) shares
issued  in  a bona fide public offering by the Company of its securities, unless
(A) the Company delivers to Investor a written notice (the "SUBSEQUENT FINANCING
NOTICE")  of its intention to effect such Subsequent Financing, which Subsequent
Financing  Notice shall describe in reasonable detail the proposed terms of such
Subsequent  Financing,  the amount of proceeds intended to be raised thereunder,
the  person  with whom such Subsequent Financing shall be effected, and attached
to  which  shall  be  a  term sheet or similar document relating thereto and (B)
Investor shall not have notified the Company by 5:00 p.m. (New York time) on the
fifth  (5th) Trading Day after its receipt of the Subsequent Financing Notice of
its  willingness  to  provide,  subject  to  completion  of  mutually acceptable
documentation,  financing to the Company on substantially the terms set forth in
the Subsequent Financing Notice. If Investor shall fail to notify the Company of
its  intention to enter into such negotiations within such time period, then the
Company  may  effect  the  Subsequent Financing substantially upon the terms set
forth  in  the  Subsequent  Financing  Notice;  PROVIDED  THAT the Company shall
provide  Investor  with a second Subsequent Financing Notice, and Investor shall
again  have  the  right of first refusal set forth above in this Section, if the
Subsequent  Financing  subject  to the initial Subsequent Financing Notice shall
not  have  been  consummated  for  any  reason  on  the  terms set forth in such
Subsequent  Financing  Notice  within thirty (30) Trading Days after the date of
the  initial Subsequent Financing Notice. The rights granted to Investor in this
Section  are  not subject to any prior right of first refusal given to any other
person  except  as  disclosed  on  Schedule  4(c).

     w.  Lock-up.  The  Company  agrees  to  use  its  best  efforts to have its
officers,  insiders, directors, affiliates or other related parties refrain from
selling  Common  Stock  during  each  Pricing  Period.

     x.  No  General  Solicitation.  Neither  the Company, nor any of its
affiliates,  nor  any  person  acting  on its behalf, has engaged in any form of
general solicitation or general advertising (within the meaning of Regulation D)
in  connection  with  the  offer  or  sale  of  the Common Stock offered hereby.

     5.     COVENANTS  OF  THE  COMPANY

     a.     Best  Efforts.  The  Company  shall  use  its best efforts timely to
satisfy each of the conditions to be satisfied by it as provided in Section 7 of
this  Agreement.

     b.     Blue  Sky.  The  Company  shall, at its sole cost and expense, on or
before  each  of  the  Closing  Dates,  take  such  action  as the Company shall
reasonably  determine  is  necessary  to  qualify  the Securities for, or obtain
exemption  for  the Securities for, sale to the Investor at each of the Closings
pursuant  to  this  Agreement  under applicable securities or "Blue Sky" laws of
such states of the United States, as reasonably specified by Investor, and shall
provide  evidence of any such action so taken to the Investor on or prior to the
Closing  Date.  The  Company  shall,  at  its  sole  cost  and expense, make all

<PAGE>

filings  and  reports  relating to the offer and sale of the Securities required
under  the applicable securities or "Blue Sky" laws of such states of the United
States  following  each  of  the  Closing  Dates.

     c.     Reporting  Status.  Until the earlier to occur of (i) the first date
which  is  after the date this Agreement is terminated pursuant to Section 9 and
on  which  the  Holders  (as  that  term  is  defined in the Registration Rights
Agreement)  may  sell  all of the Securities acquired pursuant to this Agreement
without  restriction  pursuant to Rule 144(k) promulgated under the 1933 Act (or
successor  thereto),  and (ii) the date on which (A) the Holders shall have sold
all the Securities issuable hereunder and (B) this Agreement has been terminated
pursuant  to  Section  9 (the "REGISTRATION PERIOD"), the Company shall file all
reports  required  to  be  filed  with the SEC pursuant to the 1934 Act, and the
Company  shall  not  terminate  its status as a reporting company under the 1934
Act.

     d.     Use of Proceeds.  The Company will use the proceeds from the sale of
the  Shares  (excluding amounts paid by the Company for fees as set forth in the
Transaction  Documents)  for general corporate and working capital purposes, but
not  to  pay  down  debt.

     e.     Financial  Information.  The Company agrees to make available to the
Investor  via  EDGAR  or  other  electronic  means the following to the Investor
during  the  Registration  Period:  (i)  within  five (5) Trading Days after the
filing  thereof  with  the  SEC,  a copy of its Annual Reports on Form 10-K, its
Quarterly  Reports  on  Form  10-Q,  any  Current  Reports  on  Form 8-K and any
Registration  Statements  or  amendments filed pursuant to the 1933 Act; (ii) on
the  same  day  as  the  release thereof, facsimile copies of all press releases
issued  by  the  Company or any of its Subsidiaries, (iii) copies of any notices
and other information made available or given to the shareholders of the Company
generally,  contemporaneously with the making available or giving thereof to the
shareholders  and  (iv)  within  two  (2)  calendar  days  of filing or delivery
thereof, copies of all documents filed with, and all correspondence sent to, the
Principal Market, any securities exchange or market, or the National Association
of  Securities  Dealers,  Inc.,  unless  such  information is material nonpublic
information.

     f.     Reservation  of  Shares.  Subject  to  the  following  sentence, the
Company  shall  take  all  action necessary to at all times have authorized, and
reserved  for  the  purpose of issuance, a sufficient number of shares of Common
Stock to provide for the issuance of the Securities hereunder. In the event that
the  Company  determines that it does not have a sufficient number of authorized
shares  of  Common Stock to reserve and keep available for issuance as described
in  this  Section  5(f),  the Company shall use its best efforts to increase the
number  of authorized shares of Common Stock by seeking shareholder approval for
the  authorization  of  such  additional  shares.

     g.     Listing.  The  Company  shall  promptly secure the listing of all of
the  Registrable  Securities  (as  defined in the Registration Rights Agreement)
upon  the  Principal  Market  and  each  other  national securities exchange and
automated  quotation

<PAGE>

system,  if  any,  upon which shares of Common Stock are then listed (subject to
official  notice of issuance) and shall maintain, so long as any other shares of
Common Stock shall be so listed, such listing of all Registrable Securities from
time  to time issuable under the terms of the Transaction Documents. The Company
shall  maintain  the Common Stock's authorization for quotation on the Principal
Market.  Neither  the  Company nor any of its Subsidiaries shall take any action
which  would  be reasonably expected to result in the delisting or suspension of
the Common Stock on the Principal Market (excluding suspensions of not more than
one  trading  day  resulting  from  business  announcements by the Company). The
Company shall promptly provide to the Investor copies of any notices it receives
from  the  Principal  Market  regarding  the continued eligibility of the Common
Stock for listing on such automated quotation system or securities exchange. The
Company  shall  pay  all  fees  and  expenses  in connection with satisfying its
obligations  under  this  Section  5(g).

     h.     Transactions  With  Affiliates.  The  Company  shall  not, and shall
cause  each of its Subsidiaries not to, enter into, amend, modify or supplement,
or  permit  any  Subsidiary  to  enter  into,  amend,  modify or supplement, any
agreement,  transaction,  commitment  or  arrangement  with  any  of  its or any
Subsidiary's  officers, directors, persons who were officers or directors at any
time during the previous two years, shareholders who beneficially own 5% or more
of  the  Common  Stock,  or  affiliates or with any individual related by blood,
marriage or adoption to any such individual or with any entity in which any such
entity  or  individual  owns  a  5% or more beneficial interest (each a "RELATED
PARTY"),  except  for (i) customary employment arrangements and benefit programs
on  reasonable terms, (ii) any agreement, transaction, commitment or arrangement
on  an  arms-length basis on terms no less favorable than terms which would have
been  obtainable  from  a  person  other  than  such Related Party, or (iii) any
agreement,  transaction,  commitment  or  arrangement  which  is  approved  by a
majority of the disinterested directors of the Company. For purposes hereof, any
director  who is also an officer of the Company or any Subsidiary of the Company
shall  not  be  a  disinterested  director  with  respect to any such agreement,
transaction,  commitment  or arrangement. "AFFILIATE" for purposes hereof means,
with respect to any person or entity, another person or entity that, directly or
indirectly,  (i) has a 5% or more equity interest in that person or entity, (ii)
has  5% or more common ownership with that person or entity, (iii) controls that
person  or  entity,  or  (iv)  shares common control with that person or entity.
"CONTROL"  or  "CONTROLS"  for purposes hereof means that a person or entity has
the  power,  direct  or  indirect,  to conduct or govern the policies of another
person  or  entity.

     i.     Filing  of  Form  8-K.  On  or  before  the  date which is three (3)
Trading  Days  after the Execution Date, the Company shall file a Current Report
on Form 8-K with the SEC describing the terms of the transaction contemplated by
the  Transaction  Documents in the form required by the 1934 Act, if such filing
is  required.

     j.     Corporate  Existence.  The  Company  shall  use  its best efforts to
preserve  and  continue  the  corporate  existence  of  the  Company.

<PAGE>

     k.  Notice of Certain Events Affecting Registration; Suspension of Right to
Make  a  Put.  The Company shall promptly notify Investor upon the occurrence of
any  of  the  following events in respect of a Registration Statement or related
prospectus  in  respect of an offering of the Shares: (i) receipt of any request
for additional information by the SEC or any other federal or state governmental
authority  during  the period of effectiveness of the Registration Statement for
amendments  or  supplements to the Registration Statement or related prospectus;
(ii)  the  issuance  by  the  SEC  or  any  other  federal or state governmental
authority  of  any  stop  order suspending the effectiveness of any Registration
Statement  or  the initiation of any proceedings for that purpose; (iii) receipt
of  any  notification  with  respect  to  the suspension of the qualification or
exemption  from  qualification of any of the Shares for sale in any jurisdiction
or  the  initiation  or threatening of any proceeding for such purpose; (iv) the
happening  of  any  event  that  makes  any  statement made in such Registration
Statement  or  related  prospectus  or any document incorporated or deemed to be
incorporated  therein  by  reference  untrue  in  any  material  respect or that
requires  the  making  of  any  changes  in  the Registration Statement, related
prospectus  or  documents  so  that, in the case of a Registration Statement, it
will  not  contain  any untrue statement of a material fact or omit to state any
material  fact required to be stated therein or necessary to make the statements
therein  not misleading, and that in the case of the related prospectus, it will
not  contain  any  untrue  statement  of  a  material  fact or omit to state any
material  fact required to be stated therein or necessary to make the statements
therein,  in  the  light  of  the  circumstances under which they were made, not
misleading; and (v) the Company's reasonable determination that a post-effective
amendment  to  the  Registration Statement would be appropriate, and the Company
shall  promptly  make  available to Investor any such supplement or amendment to
the related prospectus. The Company shall not deliver to Investor any Put Notice
during  the  continuation  of  any  of  the  foregoing  events.

     l.  Reimbursement.  If  (i)  Investor,  other  than  by reason of its gross
negligence,  willful  misconduct  or  any  untrue  statement of material fact or
failure  to  state  a  material fact in any registration statement or prospectus
relating  to  the  Investor or the proposed resale of any of the Shares, becomes
involved  in  any capacity in any action, proceeding or investigation brought by
any  shareholder  of  the  Company,  in  connection  with  or as a result of the
consummation  of  the transactions contemplated by the Transaction Documents, or
if  Investor is impleaded in any such action, proceeding or investigation by any
person, or (ii) Investor, other than by reason of its gross negligence,  willful
misconduct, any untrue statement of material fact or failure to state a material
fact in any registration statement or prospectus relating to the Investor or the
proposed sale of the Shares or by reason of its trading of the Common Stock in a
manner  that  is  illegal under the federal securities laws, becomes involved in
any  capacity  in  any  action,  proceeding  or investigation brought by the SEC
against  or  involving  the  Company or in connection with or as a result of the
consummation  of  the transactions contemplated by the Transaction Documents, or
if  Investor is impleaded in any such action, proceeding or investigation by any
person,  then  in  any  such  case,  the Company will reimburse Investor for its
reasonable legal and other expenses (including the cost of any investigation and
preparation) incurred in connection therewith, as such expenses are incurred. In
addition,  other  than  with  respect to any matter in which Investor is a named
party,  the  Company  will  pay  to

<PAGE>

Investor  the charges, as reasonably determined by Investor, for the time of any
officers  or  employees of Investor devoted to appearing and preparing to appear
as witnesses, assisting in preparation for hearings, trials or pretrial matters,
or  otherwise  with respect to inquiries, hearing, trials, and other proceedings
relating  to the subject matter of this Agreement. The reimbursement obligations
of  the  Company  under this section shall be in addition to any liability which
the  Company may otherwise have, shall extend upon the same terms and conditions
to any affiliates of Investor that are actually named in such action, proceeding
or  investigation,  and  partners,  directors,  agents,  employees,  attorneys,
accountants,  auditors  and controlling persons (if any), as the case may be, of
Investor  and  any  such  affiliate,  and shall be binding upon and inure to the
benefit  of  any  successors of the Company, Investor and any such affiliate and
any  such  person.

     6.  COVER.  If,  the number of Shares represented by any Put Notices become
restricted  or  are  no  longer  freely  trading  for  any reason, and after the
applicable  Closing  Date, the Investor purchases, in an open market transaction
or  otherwise,  the  Company's  Common Stock (the "Covering Shares") in order to
make  delivery  in  satisfaction  of a sale of Common Stock by the Investor (the
"Sold  Shares"),  which  delivery  such  Investor  anticipated to make using the
Shares represented by the Put Notice  (a "Buy-In"), the Company shall pay to the
Investor  the  Buy-In  Adjustment  Amount  (as  defined  below).  The  "Buy-In
Adjustment  Amount"  is  the  amount  equal  to  the  excess, if any, of (a) the
Investor's  total  purchase  price (including brokerage commissions, if any) for
the  Covering  Shares over (b) the net proceeds (after brokerage commissions, if
any)  received  by  the Investor from the sale of the  Sold Shares.  The Company
shall  pay the Buy-In Adjustment Amount to the Investor in immediately available
funds  immediately  upon demand by the Investor.  By way of illustration and not
in  limitation of the foregoing, if the Investor purchases Common Stock having a
total  purchase  price  (including  brokerage commissions) of $11,000 to cover a
Buy-In with respect to the Common Stock it sold for net proceeds of $10,000, the
Buy-In  Adjustment  Amount  which  the  Company  will  be required to pay to the
Investor  will  be  $1,000.

     7.     CONDITIONS  OF  THE  COMPANY'S  OBLIGATION  TO  SELL.

     The obligation hereunder of the Company to issue and sell the Shares to the
Investor is further subject to the satisfaction, at or before each Closing Date,
of  each  of  the following conditions set forth below. These conditions are for
the  Company's  sole benefit and may be waived by the Company at any time in its
sole  discretion.

     a.     The  Investor  shall  have  executed  each of this Agreement and the
Registration  Rights  Agreement  and  delivered  the  same  to  the  Company.

     b.     The  Investor shall have delivered to the Escrow Agent  the Purchase
Price  for  the  Shares  being  purchased  by the Investor at the Closing (after
receipt  of  confirmation  of  delivery  of  such  Shares)  by  wire transfer of
immediately  available  funds  pursuant to the wire instructions provided by the
Escrow  Agent.

<PAGE>

     c.     The representations and warranties of the Investor shall be true and
correct as of the date when made and as of the applicable Closing Date as though
made  at that time (except for representations and warranties that speak as of a
specific  date),  and  the Investor shall have performed, satisfied and complied
with  the  covenants,  agreements  and  conditions  required  by the Transaction
Documents  to  be  performed,  satisfied  or complied with by the Investor at or
prior  to  such  Closing  Date.

     d.     No  statute,  rule,  regulation,  executive order, decree, ruling or
injunction  shall  have  been  enacted,  entered, promulgated or endorsed by any
court  or  governmental  authority of competent jurisdiction which prohibits the
consummation  of  any  of  the  transactions  contemplated  by  this  Agreement.

No  Valuation  Event  shall  have  occurred since the applicable Put
Notice Date.

     8.     FURTHER  CONDITIONS  OF  THE  INVESTOR'S  OBLIGATION  TO  PURCHASE.

     The  obligation  of the Investor hereunder to purchase Shares is subject to
the  satisfaction,  on  or  before  each  Closing Date, of each of the following
conditions  set  forth  below.

     a.     The  Company  shall  have executed each of the Transaction Documents
and  delivered  the  same  to  the  Investor.

     b.     The  Common Stock shall be authorized for quotation on the Principal
Market  and  trading  in  the  Common Stock shall not have been suspended by the
Principal  Market  or  the  SEC,  at  any  time beginning on the date hereof and
through  and including the respective Closing Date (excluding suspensions of not
more  than one Trading Day resulting from business announcements by the Company,
provided  that such suspensions occur prior to the Company's delivery of the Put
Notice  related  to  such  Closing).

     c.     The  representations and warranties of the Company shall be true and
correct as of the date when made and as of the applicable Closing Date as though
made  at  that time (except for (i) representations and warranties that speak as
of a specific date and (ii) with respect to the representations made in Sections
4(g),  (h)  and  (j) and the third sentence of Section 4(k) hereof, events which
occur  on  or  after the date of this Agreement and are disclosed in SEC filings
made  by  the Company at least ten (10) Trading Days prior to the applicable Put
Notice  Date)  and the Company shall have performed, satisfied and complied with
the  covenants,  agreements and conditions required by the Transaction Documents
to  be  performed,  satisfied  or complied with by the Company on or before such
Closing  Date.  The  Investor  may  request  an  update  as of such Closing Date
regarding  the  representation  contained  in  Section  4(c)  above.

     d.     Investor  shall  have  received  an  opinion letter of the Company's
counsel  on  or  before  the  Execution  Date.

<PAGE>

     e.     The Company shall have executed and delivered to the Escrow Agent or
Investor  the  certificates representing, or have executed electronic book-entry
transfer  of, the Shares, (in such denominations as such Investor shall request)
being  purchased  by  the  Investor  at  such  Closing.

     f.     The Board of Directors of the Company shall have adopted resolutions
consistent  with Section 4(b)(ii) above (the "RESOLUTIONS") and such Resolutions
shall  not  have  been  amended  or  rescinded  prior  to  such  Closing  Date.

     g.     If requested by the Investor, the Investor shall receive a letter of
the  type, in the form and with the substance of the letter described in Section
3(s)  of  the  Registration  Rights  Agreement  from  the  Company's  auditors.

     h.     No  statute,  rule,  regulation,  executive order, decree, ruling or
injunction  shall  have  been  enacted,  entered, promulgated or endorsed by any
court  or  governmental  authority of competent jurisdiction which prohibits the
consummation  of  any  of  the  transactions  contemplated  by  this  Agreement.

     i.     The  Registration  Statement shall be effective on each Closing Date
and  no  stop  order  suspending the effectiveness of the Registration statement
shall  be  in  effect  or  shall  be pending or threatened. Furthermore, on each
Closing  Date  (i)  neither  the Company nor Investor shall have received notice
that  the  SEC  has issued or intends to issue a stop order with respect to such
Registration  Statement or that the SEC otherwise has suspended or withdrawn the
effectiveness of such Registration Statement, either temporarily or permanently,
or  intends  or  has  threatened  to  do so (unless the SEC's concerns have been
addressed  and  Investor  is  reasonably  satisfied  that  the  SEC no longer is
considering  or intends to take such action),and (ii) no other suspension of the
use or withdrawal of the effectiveness of such Registration Statement or related
prospectus  shall  exist.

     j.     At  the  time of each Closing, the Registration Statement (including
information  or  documents incorporated by reference therein) and any amendments
or supplements thereto shall not contain any untrue statement of a material fact
or omit to state any material fact required to be stated therein or necessary to
make  the  statements  therein  not  misleading  or  which  would require public
disclosure  or  an  update  supplement  to  the  prospectus.

     k.     There  shall have been no filing of a petition in bankruptcy, either
voluntarily  or  involuntarily,  with respect to the Company and there shall not
have  been commenced any proceedings under any bankruptcy or insolvency laws, or
any  laws  relating  to  the  relief of debtors, readjustment of indebtedness or
reorganization  of debtors, and there shall have been no calling of a meeting of
creditors  of  the  Company  or  appointment  of  a  committee  of  creditors or
liquidating  agents  or  offering of a composition or extension to creditors by,
for,  with  or  without  the  consent  or  acquiescence  of  the  Company.

<PAGE>

     l.     If  applicable,  the shareholders of the Company shall have approved
the  issuance  of  any  Shares in excess of the Maximum Common Stock Issuance in
accordance  with  Section  2(j).

     m.     The  conditions to such Closing set forth in Section 2(f) shall have
been  satisfied  on  or  before  such  Closing  Date.

     n.     The  Company  shall  have  certified  to  the Investor the number of
shares  of  Common  Stock  outstanding as of a date within five (5) Trading Days
prior  to  such  Closing  Date.

     o.     The  Company  shall  have  delivered  to  such  Investor  such other
documents  relating  to  the transactions contemplated by this Agreement as such
Investor  or  its counsel may reasonably request upon reasonable advance notice.

     9.     TERMINATION.  This  Agreement  shall  terminate  upon  any  of  the
following  events:

          (i)  when the Investor has purchased an aggregate of $6,000,000 in the
          Common  Stock of the Company pursuant to this Agreement; provided that
          the  Company's  representations, warranties and covenants contained in
          this  Agreement  insofar as applicable to the transactions consummated
          hereunder  prior to such termination, shall survive the termination of
          this  Agreement  for  the  period  of  any  applicable  statute  of
          limitations,

          (ii)  on  the date which is thirty-six (36) months after the Effective
          Date;

          (iii)  if  the Company shall file or consent by answer or otherwise to
          the  entry  of an order for relief or approving a petition for relief,
          reorganization  or arrangement or any other petition in bankruptcy for
          liquidation  or  to take advantage of any bankruptcy or insolvency law
          of  any  jurisdiction,  or shall make an assignment for the benefit of
          its  creditors,  or  shall  consent to the appointment of a custodian,
          receiver, trustee or other officer with similar powers of itself or of
          any  substantial  part  of  its  property,  or  shall be adjudicated a
          bankrupt  or insolvent, or shall take corporate action for the purpose
          of  any  of  the foregoing, or if a court or governmental authority of
          competent  jurisdiction  shall  enter an order appointing a custodian,
          receiver, trustee or other officer with similar powers with respect to
          the  Company  or  any substantial part of its property or an order for
          relief  or  approving  a  petition for relief or reorganization or any
          other  petition  in bankruptcy or for liquidation or to take advantage
          of  any bankruptcy or insolvency law, or an order for the dissolution,
          winding  up  or  liquidation  of  the Company, or if any such petition
          shall  be  filed  against  the  Company;

<PAGE>

          (iv)  if  the  Company  shall  issue  or sell any equity securities or
          securities convertible into, or exchangeable for, equity securities or
          enter into any other equity financing facility during the Open Period,
          other  than  in  compliance  with  Section  4(v);

          (v)  the  trading  of  the  Common  Stock is suspended by the SEC, the
          Principal  Market  or  the  NASD  for a period of five (5) consecutive
          Trading  Days  during  the  Open  Period;

          (vi)  the  Company  shall  not  have  filed  with  the SEC the initial
          Registration  Statement  with respect to the resale of the Registrable
          Securities  in  accordance  with the terms of the initial Registration
          Rights Agreement within sixty (60) calendar days of the date hereof or
          the  Registration Statement has not been declared effective within one
          hundred  eighty  (180)  calendar  days  of  the  date  hereof;  or

          (vii)  The  Common Stock ceases to be registered under the 1934 Act or
          listed  or  traded  on  the  Principal  Market;  or

          (viii) The Company requires shareholder approval under Nasdaq rules to
          issue  additional  shares  and such approval is not obtained within 60
          days  from  the  date  when  the  Company has issued its 19.9% maximum
          allowable  shares.

Upon the occurrence of one of the above-described events, the Company shall send
written  notice  of  such  event  to  the  Investor.

     10.  INDEMNIFICATION.  In  consideration  of  the  Investor's execution and
delivery  of  the  this  Agreement  and  the  Registration  Rights Agreement and
acquiring  the  Shares  hereunder  and in addition to all of the Company's other
obligations  under the Transaction Documents, the Company shall defend, protect,
indemnify  and  hold  harmless  the  Investor  and  all  of  their shareholders,
officers,  directors,  employees and direct or indirect investors and any of the
foregoing  person's  agents  or  other  representatives  (including,  without
limitation,  those  retained in connection with the transactions contemplated by
this  Agreement)  (collectively, the "INDEMNITEES") from and against any and all
actions,  causes  of  action,  suits,  claims,  losses,  costs, penalties, fees,
liabilities  and  damages, and expenses in connection therewith (irrespective of
whether  any  such Indemnitee is a party to the action for which indemnification
hereunder is sought), and including reasonable attorneys' fees and disbursements
(the  "INDEMNIFIED  LIABILITIES'), incurred by any Indemnitee as a result of, or
arising  out  of,  or  relating  to  (i)  any misrepresentation or breach of any
representation  or  warranty made by the Company in the Transaction Documents or
any  other  certificate,  instrument  or document contemplated hereby or thereby
(ii)  any  breach  of  any  covenant,  agreement  or  obligation  of the Company
contained  in  the Transaction Documents or any other certificate, instrument or
document  contemplated  hereby  or  thereby,  (iii) any cause of action, suit or

<PAGE>

claim  brought  or made against such Indemnitee by a third party and arising out
of  or resulting from the execution, delivery, performance or enforcement of the
Transaction  Documents  or  any  other  certificate,  instrument  or  document
contemplated  hereby or thereby, (iv) any transaction financed or to be financed
in  whole  or in part, directly or indirectly, with the proceeds of the issuance
of  the  Shares  or (v) the status of the Investor or holder of the Shares as an
investor in the Company, except insofar as any such misrepresentation, breach or
any  untrue statement, alleged untrue statement, omission or alleged omission is
made  in  reliance  upon and in conformity with written information furnished to
the  Company  by the Investor which is specifically intended by the Investor for
use  in  the  preparation  of  any  such  Registration  Statement,  preliminary
prospectus  or  prospectus or based on illegal or alleged illegal trading of the
Shares  by  the  Investor.  To  the extent that the foregoing undertaking by the
Company  may be unenforceable for any reason, the Company shall make the maximum
contribution  to  the  payment  and  satisfaction  of  each  of  the Indemnified
Liabilities  which is permissible under applicable law. The indemnity provisions
contained  herein  shall be in addition to any cause of action or similar rights
the  Investor  may  have,  and  any  liabilities the Investor may be subject to.

     11.    GOVERNING  LAW;  MISCELLANEOUS.

     a.     Governing  Law.  This Agreement shall be governed by and interpreted
in  accordance  with  the  laws  of  the State of Colorado without regard to the
principles  of  conflict  of  laws. Each party hereby irrevocably submits to the
non-exclusive  jurisdiction  of the state and federal courts sitting in the City
of New York, borough of Manhattan, for the adjudication of any dispute hereunder
or  in  connection  herewith  or  with  any  transaction  contemplated hereby or
discussed herein, and hereby irrevocably waives, and agrees not to assert in any
suit,  action  or proceeding, any claim that it is not personally subject to the
jurisdiction  of any such court, that such suit, action or proceeding is brought
in an inconvenient forum or that the venue of such suit, action or proceeding is
improper.  Each  party hereby irrevocably waives personal service of process and
consents  to  process  being  served  in  any such suit, action or proceeding by
mailing a copy thereof to such party at the address for such notices to it under
this Agreement and agrees that such service shall constitute good and sufficient
service  of process and notice thereof. Nothing contained herein shall be deemed
to  limit  in any way any right to serve process in any manner permitted by law.
If  any  provision  of  this  Agreement shall be invalid or unenforceable in any
jurisdiction,  such invalidity or unenforceability shall not affect the validity
or enforceability of the remainder of this Agreement in that jurisdiction or the
validity  or  enforceability  of  any  provision  of this Agreement in any other
jurisdiction.

Investor  Fees;  Legal  Fees;  and  Escrow  Fees.

          (i)  As an inducement to Dutchess Private Equities Fund, L.P. to enter
     into  this  Agreement,  the Company has agreed to issue to Dutchess Private
     Equities,  L.P.  as  a  commitment  fee 600,000 shares of its Common Stock.
     These shares will be registered in the current offering and shall be issued
     to  Dutchess  Private  Equities  Fund,  L.P.  in  certificate  form  on the
     Execution  Date.

<PAGE>

          (ii)  On  each  Closing Date the Company shall pay to Dutchess Private
     Equities  Fund,  L.P., an amount equal to 8.0% of the Purchase Amount being
     paid  by  the  Investor  which  amount  shall be deducted from the Purchase
     Amount  by  the Escrow Agent and paid directly to Dutchess Private Equities
     Fund,  L.P.

          (iii)  The  Company  shall  pay Investor's counsel, Joseph B. LaRocco,
     Esq.,  for document preparation and review of the registration statement to
     be  prepared  by the Company's counsel. Joseph B. LaRocco, Esq. has already
     received  $2,500 and shall receive __________ shares, which shares shall be
     registered  in  the next registration statement to be filed by the Company.

          (iv)  The  Company shall also pay the Escrow Agent for escrow services
     pursuant  to  a  separate  escrow  agreement.

          (v)  Except  as  otherwise  set forth herein, each party shall pay the
     fees  and expenses of its advisers, counsel, accountants and other experts,
     if  any,  and  all  other  expenses  incurred by such party incident to the
     negotiation,  preparation,  execution,  delivery  and  performance  of this
     Agreement.  Any attorneys' fees and expenses incurred by either the Company
     or  by  the  Investor  in  connection  with  the  preparation, negotiation,
     execution  and  delivery of any amendments to this Agreement or relating to
     the  enforcement  of  the  rights of any party, after the occurrence of any
     breach  of  the  terms of this Agreement by another party or any default by
     another  party in respect of the transactions contemplated hereunder, shall
     be  paid  on  demand  by  the  party  which  breached  the Agreement and/or
     defaulted,  as  the  case may be. The Company shall pay all stamp and other
     taxes  and  duties levied in connection with the issuance of any Securities
     issued  pursuant  hereto.

     c.     Counterparts.  This  Agreement  may  be  executed  in  two  or  more
identical  counterparts,  all  of  which  shall  be  considered one and the same
agreement  and shall become effective when counterparts have been signed by each
party  and  delivered  to  the  other party; provided that a facsimile signature
shall  be  considered  due  execution  and  shall  be binding upon the signatory
thereto with the same force and effect as if the signature were an original, not
a  facsimile  signature.

     d.     Headings;  Singular/Plural.  The  headings of this Agreement are for
convenience  of  reference  and  shall  not  form  part  of,  or  affect  the
interpretation  of,  this  Agreement.  Whenever  required by the context of this
Agreement, the singular shall include the plural and masculine shall include the
feminine.

     e.     Severability. If any provision of this Agreement shall be invalid or
unenforceable in any jurisdiction, such invalidity or unenforceability shall not
affect the validity or enforceability of the remainder of this Agreement in that
jurisdiction  or  the  validity  or  enforceability  of  any  provision  of this
Agreement  in  any  other  jurisdiction.

<PAGE>

     f. Entire Agreement; Amendments. This Agreement supersedes all other prior
oral  or  written agreements between the Investor, the Company, their affiliates
and persons acting on their behalf with respect to the matters discussed herein,
and  this  Agreement  and the instruments referenced herein (including the other
Transaction  Documents)  contain  the  entire  understanding of the parties with
respect  to  the  matters covered herein and therein and, except as specifically
set  forth  herein  or  therein,  neither the Company nor the Investor makes any
representation,  warranty, covenant or undertaking with respect to such matters.
No  provision  of  this  Agreement may be amended other than by an instrument in
writing  signed  by the Company and the Investor, and no provision hereof may be
waived  other  than by an instrument in writing signed by the party against whom
enforcement  is  sought.

     g. Notices. Any notices or other communications required or permitted to be
given under the terms of this Agreement must be in writing and will be deemed to
have  been  delivered  (i)  upon  receipt,  when delivered personally; (ii) upon
receipt,  when  sent  by  facsimile  (provided  confirmation  of transmission is
mechanically or electronically generated and kept on file by the sending party);
or  (iii)  one  (1)  day  after  deposit  with a nationally recognized overnight
delivery  service,  in  each case properly addressed to the party to receive the
same.  The  addresses  and  facsimile  numbers for such communications shall be:

     If  to  the  Company:

     FTS  Apparel,  Inc.
     1379  River  Road
     Yardley,  Pennsylvania  19067
     Attention:  Scott  Galagher,  CEO
     Telephone:     (215)  369-9820
     Facsimile:     (215)  369-9821

     With  a  copy  to
     David  Babiarz,  Esq.
     7720  E.  Belleview,  Suite  200
     Greenwood  Village,  CO  80111
     Telephone:  303-779-5900
     Facsimile:    303-779-6006

     If  to  the  Investor:

     At  the  address  listed  in  the  Questionnaire

     With  a  copy  to:
<PAGE>

     Joseph  B.  LaRocco,  Esq.
     49  Locust  Avenue,  Suite  107
     New  Canaan,  CT  06840
     Telephone  No.:  203-966-0566
       Telecopier  No.:  203-966-0363

     Each  party  shall provide five (5) days' prior written notice to the other
party  of  any  change  in  address  or  facsimile  number.

     h.  No  Assignment.  This  Agreement  may  not  be  assigned.

     i.  No Third Party Beneficiaries. This Agreement is intended for the
benefit  of  the  parties  hereto  and  is  not  for the benefit of, nor may any
provision  hereof  be  enforced  by,  any  other  person.

     j.  Survival.  The  representations  and  warranties of the Company and the
Investor  contained  in Sections 2 and 3, the agreements and covenants set forth
in Sections 4 and 5, and the indemnification provisions set forth in Section 10,
shall  survive  each  of  the  Closings.

     k.  Publicity.  The  Company  and Investor shall consult with each other in
issuing any press releases or otherwise making public statements with respect to
the  transactions  contemplated  hereby  and no party shall issue any such press
release  or  otherwise  make any such public statement without the prior written
consent  of  the other parties, which consent shall not be unreasonably withheld
or delayed, except that no prior consent shall be required if such disclosure is
required by law, in which such case the disclosing party shall provide the other
parties  with  prior  notice  of  such  public  statement.  Notwithstanding  the
foregoing,  the Company shall not publicly disclose the name of Investor without
the  prior  written  consent  of such Investor, except to the extent required by
law.  Investor  acknowledges  that  this  Agreement  and  all  or  part  of  the
Transaction  Documents  may be deemed to be "material contracts" as that term is
defined by Item 601(b)(10) of Regulation S-K, and that the Company may therefore
be  required  to  file  such  documents  as  exhibits to reports or registration
statements filed under the Securities 1933 Act or the 1934 Act. Investor further
agrees  that  the  status  of such documents and materials as material contracts
shall  be  determined  solely  by the Company, in consultation with its counsel.

     l. Further Assurances. Each party shall do and perform, or cause to be done
and  performed,  all such further acts and things, and shall execute and deliver
all such other agreements, certificates, instruments and documents, as the other
party may reasonably request in order to carry out the intent and accomplish the
purposes of this Agreement and the consummation of the transactions contemplated
hereby.

     m.  Placement  Agent.  Unless  set  forth  in  this  Agreement,  no fees or
commissions  will  be payable by the Company to any broker, financial advisor or
consultant,  finder, placement agent, investment banker, bank or other person or
<PAGE>
entity,  with  respect  to  the  transactions  contemplated  by  the Transaction
Documents.  The  Investor  shall  have no obligation with respect to any fees or
with respect to any claims made by or on behalf of other persons or entities for
fees  of  a type contemplated in this Section that may be due in connection with
the  transactions  contemplated  by the Transaction Documents. The Company shall
indemnify  and hold harmless the Investor, their employees, officers, directors,
agents,  and  partners,  and  their  respective affiliates, from and against all
claims,  losses,  damages,  costs  (including  the  costs  of  preparation  and
attorney's  fees)  and  expenses  incurred  in  respect  of  any such claimed or
existing  fees,  as  such  fees  and  expenses  are  incurred.

     n.  No  Strict  Construction.  The  language used in this Agreement will be
deemed  to be the language chosen by the parties to express their mutual intent,
and  no  rules  of  strict  construction  will  be  applied  against  any party.

     o.  Remedies.  The  Investor  and  each holder of the Shares shall have all
rights  and  remedies  set  forth  in this Agreement and the Registration Rights
Agreement  and  all  rights and remedies which such holders have been granted at
any  time under any other agreement or contract and all of the rights which such
holders  have under any law. Any person having any rights under any provision of
this  Agreement  shall  be entitled to enforce such rights specifically (without
posting  a  bond or other security), to recover damages by reason of any default
or  breach  of  any  provision  of  this  Agreement,  including  the recovery of
reasonable attorneys fees and costs, and to exercise all other rights granted by
law.

     p.  Payment  Set  Aside.  To the extent that the Company makes a payment or
payments  to  the Investor hereunder or the Registration Rights Agreement or the
Investor  enforces  or  exercises  its  rights hereunder or thereunder, and such
payment  or payments or the proceeds of such enforcement or exercise or any part
thereof are subsequently invalidated, declared to be fraudulent or preferential,
set  aside,  recovered from, disgorged by or are required to be refunded, repaid
or  otherwise  restored  to the Company, a trustee, receiver or any other person
under  any  law  (including,  without  limitation,  any bankruptcy law, state or
federal law, common law or equitable cause of action), then to the extent of any
such  restoration  the  obligation  or  part  thereof  originally intended to be
satisfied  shall  be  revived  and continued in full force and effect as if such
payment  had  not  been  made  or  such  enforcement or setoff had not occurred.

                [Balance of this page intentionally left blank.]

<PAGE>

                                FTS APPAREL, INC.
                                  QUESTIONNAIRE

     The information contained in this Questionnaire is being furnished in order
to  determine  whether  the  undersigned's  subscription  to purchase the Shares
described  in  this  Agreement  may  be  accepted.

     ALL  INFORMATION  CONTAINED  IN  THIS  QUESTIONNAIRE  WILL  BE  TREATED
CONFIDENTIALLY.  The  undersigned  understands,  however,  that  the Company may
present  this  Questionnaire  to  such parties as it deems appropriate if called
upon  to  establish that the proposed offer and sale of the Securities is exempt
from  registration  under  the  1933  Act, as amended.  Further, the undersigned
understands  that  the offering may be required to be reported to the Securities
and  Exchange  Commission, NASDAQ and to various state securities and "blue sky"
regulators.

     IN ADDITION TO SIGNING THE SIGNATURE PAGE, IF REQUESTED BY THE COMPANY, THE
UNDERSIGNED  MUST  COMPLETE  FORM  W-9.

I.     PLEASE  CHECK  EACH  OF  THE  STATEMENTS  BELOW  THAT  APPLIES.

               1. The undersigned: (a) has total assets in excess of $5,000,000;
          (b)  was  not  formed  for  the  specific  purpose  of  acquiring  the
          securities and (c) has its principal place of business in ___________.

               2.  The  undersigned  is  a  natural  person whose individual net
          worth*  or  joint net worth with his or her spouse exceeds $1,000,000.

               3.  The  undersigned  is  a  natural person who had an individual
          income* in excess of $200,000 in each of the two most recent years and
          who  reasonably  expects an individual income in excess of $200,000 in
          the  current  year.  Such income is solely that of the undersigned and
          excludes  the  income  of  the  undersigned's  spouse.

               4.  The undersigned is a natural person who, together with his or
          her  spouse,  has had a joint income* in excess of $300,000 in each of
          the two most recent years and who reasonably expects a joint income in
          excess  of  $300,000  in  the  current  year.

*     For  purposes of this Questionnaire, the term "net worth" means the excess
of  total  assets  over total liabilities.  In determining "income", an investor
should  add  to  his  or  her  adjusted gross income any amounts attributable to
tax-exempt  income  received, losses claimed as a limited partner in any limited
partnership,  deductions  claimed  for  depletion, contributions to IRA or Keogh
retirement  plan, alimony payments and any amount by which income from long-term
capital  gains  has  been  reduced  in  arriving  at  adjusted  gross  income.

<PAGE>

          5.     The  undersigned  is:

               (a)  a  bank  as  defined  in Section 3(a)(2) of the 1933 Act; or

               (b)  a  savings  and  loan  association  or  other institution as
               defined  in  Section 3(a)(5)(A) of the 1933 Act whether acting in
               its  individual  or  fiduciary  capacity;  or

               (c)  a  broker or dealer registered pursuant to Section 15 of the
               1934  Act;  or

               (d)  an insurance company as defined in Section 2(13) of the 1933
               Act;  or

               (e) An investment company registered under the Investment Company
               Act  of  1940  or  a  business  development company as defined in
               Section  2(a)(48)  of  the  Investment  Company  Act  of 1940; or

               (f)  a  small  business  investment  company licensed by the U.S.
               Small Business Administration under Section 301 (c) or (d) of the
               Small  Business  Investment  Act  of  1958;  or

               6. The undersigned is an entity in which all of the equity owners
               are  "accredited  investors",  as  that  term  is defined in Rule
               501(a)(3)  of  Regulation  D  of  the  1933  Act.
<PAGE>

II.       INVESTOR  INFORMATION.

          (a)  IF  THE  UNDERSIGNED  IS  AN  INDIVIDUAL:

          Name  _________________________________________________

          Street  Address  ______________________________________

          City,  State,  Zip  Code  _____________________________

          Phone  ____________________  Fax  _____________________

          Social  Security  Number  _____________________________

          Send  Correspondence  to:
          _______________________________________________________

          _______________________________________________________

          _______________________________________________________

(b)       IF  THE  UNDERSIGNED  IS  NOT  AN  INDIVIDUAL:

          Name  of  Entity  _____________________________________

          Person's  Name  ___________________  Title_____________

          State  of  Organization  ______________________________

          Principal  Business  Address  _________________________

          City,  State,  Zip  Code  _____________________________

          Taxpayer  Identification  Number  _____________________

          Phone  ____________________  Fax  _____________________

          Send  Correspondence  to:
          _______________________________________________________

          _______________________________________________________

          _______________________________________________________

<PAGE>

                                FTS APPAREL, INC.
                                 SIGNATURE PAGE

     Your  signature on this Signature Page evidences your agreement to be bound
by  the  terms  and  conditions of the Investment Agreement, Registration Rights
Agreement  and  the  Questionaire.

     1.     The undersigned hereby represents that (a) the information contained
in  the  Questionnaire  is  complete  and  accurate and (b) the undersigned will
notify  FTS  Apparel,  Inc.  immediately  if  any  material change in any of the
information occurs prior to the acceptance of the undersigned's subscription and
will  promptly  send  FTS  Apparel,  Inc.  written  confirmation of such change.

     2.     The  undersigned signatory hereby certifies that he/she has read and
understands  the Investment Agreement and Questionnaire, and the representations
made  by the undersigned in this Investment Agreement and Questionnaire are true
and  accurate.

     3.     The  undersigned  agrees to indemnify and defend the Company for any
breach  of  any  representation  or  covenant  contained  in  this Questionaire.

                                   DUTCHESS  PRIVATE  EQUITIES  FUND,  L.P.
                                   BY  ITS  GENERAL  PARTNER  DUTCHESS
                                   CAPITAL  MANAGEMENT,  LLC

August 23, 2002                          /s/   Douglas H. Leighton
____________________________       By: __________________________________
            Date                        Name:  Douglas  H.  Leighton
                                        Title:   A  Managing  Member
<PAGE>

                            COMPANY ACCEPTANCE PAGE

This  Investment  Agreement  accepted  and  agreed
to  this 23  day  of  August,  2002.

FTS  APPAREL,  INC.

    /s/ Scott Gallagher
By__________________________________
   Scott  Gallagher,  its  CEO

<PAGE>

                                LIST OF EXHIBITS
                                -----------------

EXHIBIT  A               Registration  Rights  Agreement
EXHIBIT  B               Opinion  of  Company's  Counsel
EXHIBIT  C               Escrow  Agreement
EXHIBIT  D               Broker  Representation  Letter
EXHIBIT  E               Board  Resolution
EXHIBIT  F               Put  Notice
EXHIBITG                 Partial  Release  of  Put  Amount  and  Shares

                                LIST OF SCHEDULES
                                -----------------

Schedule  4(a)      Subsidiaries
Schedule  4(c)      Capitalization
Schedule  4(e)      Conflicts
Schedule  4(g)      Material  Changes
Schedule  4(h)      Litigation
Schedule  4(l)      Intellectual  Property
Schedule  4(n)      Liens
Schedule  4(t)      Certain  Transactions

<PAGE>

                                    EXHIBIT D

                              [BROKER'S LETTERHEAD]

Date
Via  Facsimile

Attention:
_____________________

_____________________

_____________________

Re:  FTS  APPAREL,  INC.

Dear  __________________:

It  is  our understanding that the Form______ Registration Statement bearing SEC
File  Number  (  ___-______)  filed  by  FTS  APPAREL,  INC.  on  Form  _____ on
__________,  2001  was  declared  effective  on  _________,  200_.

This  letter shall confirm that ______________ shares of the common stock of FTS
APPAREL,  INC.  are being sold on behalf of __________________ and that we shall
comply  with the prospectus delivery requirements set forth in that Registration
Statement  by  filing  the  same  with  the  purchaser.

If  you  have  any  questions  please  do  not  hesitate  to  call.

Sincerely,

______________________

cc:  Joseph  B.  LaRocco,  Esq.

<PAGE>

                                    EXHIBIT F

PUT  NOTICE  NO.   ______

     FTS APPAREL, INC., a Colorado corporation (the "Company"), hereby elects to
exercise  its  right pursuant to the Investment Agreement to require Investor to
purchase  shares  of  its  common  stock.   The  Company  hereby certifies that:

     1.  The  Put  Amount  is:  $_______________.

     2.  The  Pricing  Period  runs  from  ________________ to ______________.

     3.  The  current  number  of shares of common stock issued and outstanding
         as of _____________  are  __________________________.

     4.  The  Minimum  Acceptable  Bid  Price  is  $____________.

     5.  92%  of  the  average of the three (3) lowest closing bid prices of the
Company's  Common  Stock during the ten (10) Trading Day Pricing Period ("3 Ave.
Lowest")  is  as  follows:

3 Ave. Lowest   x  92%  =  Purchase Price  x  (25% of Volume)  =  Total

_____________   x  92%  =  ______________  x  ______________   = $ ___________

_____________   x  92%  =  ______________  x  ______________   = $ ___________

_____________   x  92%  =  ______________  x  ______________   = $ ___________

_____________   x  92%  =  ______________  x  ______________   = $ ___________

_____________   x  92%  =  ______________  x  ______________   = $ ___________

_____________   x  92%  =  ______________  x  ______________   = $ ___________

_____________   x  92%  =  ______________  x  ______________   = $ ___________

_____________   x  92%  =  ______________  x  ______________   = $ ___________

_____________   x  92%  =  ______________  x  ______________   = $ ___________

                   GRAND TOTALS               ______________   = $ ___________**

Number  of  Shares  being  Purchased (total of 25% volume column) _____________*

Aggregate  Purchase  Price  of  Shares  $__________________**

               Less  Escrow  Fee  -  ___________________

           Less  Investor's  Fee  -  ___________________
<PAGE>

      Amount  to  be  wired  to  Company
                                         =============================

The  undersigned  has  executed this Put Notice as of this ___ day of ____,
200__.

FTS  APPAREL,  INC.

By:_______________________________________
      Name  and  title:

<PAGE>
                                    EXHIBIT G

                  PARTIAL RELEASE OF PURCHASE AMOUNT AND SHARES

     To:

     FTS  Apparel,  Inc.
     1379  River  Road
     Yardley,  Pennsylvania  19067
     Attention:  Scott  Galagher,  CEO
     Telephone:     (215)  369-9820
     Facsimile:     (215)  369-9821

     With  a  copy  to
     David  Babiarz,  Esq.
     7720  E.  Belleview,  Suite  200
     Greenwood  Village,  CO  80111
     Telephone:  303-779-5900
     Facsimile:    303-779-6006

     Joseph  B.  LaRocco,  Esq.
     49  Locust  Avenue,  Suite  107
     New  Canaan,  CT  06840
     Telephone  No.:  203-966-0566
     Telecopier  No.:  203-966-0363

Pursuant  to  the  terms  of  the Investment Agreement the Investor requests the
release  from  the Company of __________ shares of the Company's Common Stock by
overnight delivery or DWAC, if available, and the Investor, upon confirmation of
receipt  of  the  Shares  by  the  Escrow  Agent shall wire $____________ to the
Company  within  two  (2) Trading Days of said confirmation at which time Escrow
Agent shall wire the funds to the Company and deliver the shares to the Investor
pursuant  to  the  instructions  given  to  the  Escrow  Agent  by  the Investor

                            INVESTOR

                            By:_______________________________

Note:  The  number  of  Shares  stated in this PARTIAL RELEASE OF PUT AMOUNT AND
SHARES Form shall be equal to the dollar amount to be released divided by 92% of
the  lowest  closing  bid  price  during  that  number of Trading Days that have
elapsed  in  the  specified  Pricing  Period.

<PAGE>
SCHEDULE 4(a) SUBSIDIARIES
<PAGE>
SCHEDULE 4(c) CAPITALIZATION
<PAGE>
SCHEDULE 4(e) CONFLICTS
<PAGE>
SCHEDULE 4(g) MATERIAL CHANGES
<PAGE>
SCHEDULE 4(h) LITIGATION
<PAGE>
SCHEDULE 4(l) INTELLECTUAL PROPERTY
<PAGE>
SCHEDULE 4(n) LIENS
<PAGE>
SCHEDULE 4(t) CERTAIN TRANSACTIONS

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00043-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00043-of-00352.parquet"}]]