Document:

LICENSE AND TECHNICAL ASSISTANCE AGREEMENT

         THIS LICENSE AND TECHNICAL ASSISTANCE  AGREEMENT  ("Agreement") is made
and entered into as of October 6, 2000 ("Effective Date"), by and between SITEK,
INC., a Delaware  corporation,  having  principal  offices at 214 East  Hacienda
Avenue,   Campbell,  CA  95008  ("SITEK"),   and  OPTICNET,   INC.,  a  Delaware
corporation,  having  principal  offices at One Post  Street,  Suite  2500,  San
Francisco, CA 94104 ("OpticNet").

         WHEREAS,   SiTek  has  developed  certain   proprietary  silicon  micro
electromechanical  systems  ("MEMs")  technology  and  operates an equipped  and
staffed MEMs fabrication facility;

         WHEREAS,  OpticNet has proprietary designs for optical components using
MEMs and intends to build and market systems based on said optical products;

         WHEREAS,  OpticNet desires to obtain certain MEMs technical  assistance
and support services from SiTek;

         WHEREAS,  SiTek desires to provide the MEMs  technical  assistance  and
support services requested by OpticNet on the terms set forth herein;

         NOW,  THEREFORE,  in consideration of the above premises and the mutual
covenants contained herein, the parties hereto agree as follows:

1.       DEFINITIONS.

         1.1  "Designs"  shall mean any of  OpticNet's  proprietary  designs for
optical  components  using  MEMs for use in the  OpticNet  Market  and any other
design created by OpticNet related to the OpticNet Market.

         1.2 "Fabricated  Designs" shall mean any Designs or elements of Designs
fabricated by Sitek or OpticNet with SiTek  technical  assistance and support or
using the SiTek Process pursuant to the terms of this Agreement.

         1.3  "Milestones"  means the target  specifications  of the  Fabricated
Design and any other deadlines or targets established by OpticNet.

         1.4   "OpticNet   Market"  shall  mean  the   telecommunications   data
transmission market.

         1.5  "OpticNet  Products"  shall mean products  manufactured  by or for
OpticNet  incorporating  the Fabricated  Designs  manufactured  pursuant to this
Agreement.

         1.6  "Project"  means  all  work and  effort  in the  performance  of a
Statement of Work in connection with this Agreement.

         1.7 "Project  Technology" shall mean any Technology or inventions,  and
improvements thereto,  conceived and reduced to practice or otherwise discovered
or developed by either or both of the parties in connection  with  producing the
Fabricated Designs.

                                       1.

<PAGE>

         1.8 "Proprietary  Rights" shall mean patent rights,  trademark  rights,
copyrights,  mask work  rights,  trade  secret  rights and similar  intellectual
property rights, and all applications and registrations therefor.

         1.9  "SiTek  Components"  shall  mean  MEMs  components  based on SiTek
Technology manufactured by or for SiTek.

         1.10 "SiTek Process" shall mean the proprietary silicon  micromachining
processes developed by SiTek, including but not limited to, silicon wafer fusion
bonding,  deep  reactive  ion  plasma  etching  of  silicon  wafers and deep via
lithography for electric interconnects.

         1.11 "SiTek Technical  Assistance and Support  Services" shall mean the
provision by SiTek to OpticNet of  assistance  and advice in  understanding  the
SiTek Technology and access to SiTek's MEMs production capabilities in producing
the Fabricated Designs.

         1.12 "SiTek  Technology"  shall mean all Technology,  including but not
limited to the SiTek Process and SiTek Components,  owned or developed by or for
SiTek prior to the Effective Date and all  Technology  developed by or for SiTek
independently of the development efforts undertaken pursuant to this Agreement.

         1.13  "Specifications"  shall  mean the  specifications  and  technical
descriptions of the Designs in any SOW.

         1.14  "Statement  of Work" or "SOW"  shall mean the  development  plan,
specifications,  Milestones and schedule for the Fabricated Designs as specified
by  OpticNet  and as  modified,  supplemented  or  subsequently  established  by
OpticNet.

         1.15  "Technology"  means all  foreign  and  domestic  patents,  patent
applications,  patent rights,  know-how,  trade secrets,  copyrights,  technical
data,   inventions   (whether   patentable   or  not),   discoveries,   designs,
specifications, plans, works of authorship, techniques, methods, processes, test
procedures and all other  scientific or technical  information or materials,  in
whatever form.

2.       PROJECT DEVELOPMENT.

         2.1 Manufacture of the Fabricated Designs. SiTek shall use commercially
reasonable  efforts to manufacture or support the manufacture by OpticNet of the
Fabricated Designs according to any SOW provided by OpticNet. SiTek and OpticNet
shall perform the manufacturing work at SiTek's  fabrication  facilities.  SiTek
shall provide sufficient resources (including access to personnel, equipment and
technical  information and expertise) to accomplish the Milestones in accordance
with any SOW.

         2.2 Technical Assistance and Support.

                  (a) SiTek  Technical  Assistance.  Following  any  transfer of
SiTek  Technology to OpticNet  pursuant to Section 2.3 hereto,  and from time to
time thereafter  until  termination of this Agreement  (other than under Section
10.2(a)),  SiTek shall provide SiTek Technical  Assistance and Support  Services
requested  by  OpticNet.  SiTek will  provide a  reasonable  level

                                       2.

<PAGE>

of  technical  support  to  OpticNet  to ensure  the  OpticNet  Products  can be
manufactured  effectively.  Any assistance  provided  after  termination of this
Agreement  shall be at OpticNet's  expense at SiTek's then  applicable  standard
rates.

                  (b)  OpticNet   Technical   Assistance.   OpticNet  shall  use
commercially  reasonable  efforts (i) to collaborate  with and assist SiTek with
the  development of the Products to accomplish the Milestones in accordance with
any SOW and (ii) to provide data and technical  support as reasonably  requested
by SiTek in connection with the Project.  OpticNet, at its own cost and expense,
will allocate sufficient resources to provide such assistance and support.

         2.3 Transfer of Technical Information and Materials.  The parties shall
freely share with each other all technical  information  in connection  with the
Project.  From time to time as each party may request (but, in any event, at any
termination  or expiration  of this  Agreement),  each party shall  disclose and
transfer  to the other  party as soon as  possible  (and in any event  delivery,
disclosure  and transfer  must be fully  completed  within two (2) weeks of such
request,  termination or  expiration)  all technical and other  information  and
materials  relating  to the  Project.  Upon  termination  of this  Agreement  by
OpticNet  pursuant  to Section  10.2 below,  or in the event SiTek  unilaterally
terminates this Agreement pursuant to Section 10 prior to  commercialization  by
OpticNet of an OpticNet Product  incorporating  the Fabricated  Designs or SiTek
Technology;  then, in such case,  SiTek,  promptly  after  written  request from
OpticNet,  shall license the SiTek Technology to OpticNet or its designee to the
extent necessary to allow OpticNet or its designee to manufacture the Fabricated
Designs and OpticNet Products  developed by OpticNet pursuant to this Agreement.
The parties agree to enter into good faith negotiations to adequately compensate
SiTek for such license of such SiTek Technology.

         2.4 Project Delays;  Project Failure.  If at any time during the course
of the Project, SiTek anticipates that it will not be able to timely provide the
SiTek Technical  Assistance and Support Services  contemplated by this Agreement
or any SOW despite SiTek's good faith commercially  reasonable efforts to do so,
SiTek shall  promptly so notify  OpticNet in writing  specifying the reasons for
delay. From and after such notice,  the parties shall cooperate and use diligent
efforts  to solve the  problems  identified,  and the  Milestone  dates or other
deadlines  may,  with  OpticNet's  written  approval,  be set back for as long a
period as is required to solve the problems so  identified;  provided,  however,
that if, for any reason other than due to the fault of OpticNet,  SiTek does not
use or ceases to use commercially  reasonable efforts to provide SiTek Technical
Assistance  and Support  Services,  then OpticNet may terminate  this  Agreement
immediately on written notice pursuant to Section 10.2(a) below.

         2.5 Production of OpticNet Products.  OpticNet shall have the right, in
its sole  discretion,  to engage  third  parties  to  manufacture  the  OpticNet
Products (a "Third Party Contract"). In the event OpticNet decides to enter into
a  Third  Party  Contract,  OpticNet  shall,  whenever  feasible,  applying  its
reasonable commercial judgment, consider utilizing SiTek for such work.

                                       3.

<PAGE>

3.       OWNERSHIP OF INTELLECTUAL PROPERTY

         3.1 Ownership of SiTek Technology.  As between the parties, SiTek shall
own all Proprietary  Rights in and to all SiTek Technology,  including,  without
limitation,  all Project  Technology  consisting of or  incorporating  any SiTek
Technology.

         3.2  Ownership of Technology  Benefiting  the OpticNet  Market.  In the
event that Project Technology that would otherwise be owned by SiTek pursuant to
the provisions of Section 3.1, has application primarily within OpticNet Market,
OpticNet shall own such Project Technology ("OpticNet Technology"). SiTek hereby
assigns any and all Proprietary  Rights to such OpticNet  Technology (except its
rights in any SiTek  Technology  incorporated  therein)  to  OpticNet  and shall
execute  any  instrument  reasonably  necessary  to  evidence  or  perfect  such
assignment.  Notwithstanding  the  foregoing,  nothing in this Section  shall be
construed  as  granting to  OpticNet  an  assignment  of any rights in any SiTek
Technology.

         3.3 Ownership of Project  Technology.  Subject to Sections 3.1 and 3.2,
the parties shall jointly own all Project  Technology;  provided  however,  that
OpticNet shall exploit its ownership  interest in such Project Technology solely
within the OpticNet  Market,  and SiTek shall exploit its ownership  interest in
such Project Technology solely outside the OpticNet Market.

         3.4 Ownership of the Designs.  As between the parties,  OpticNet  shall
own all  Proprietary  Rights in and to the  Designs.  Nothing in this  Agreement
shall be  construed  as  granting  to SiTek an  assignment  of any rights in any
Designs.

         3.5 Ownership of the Fabricated Designs and OpticNet Products.  Subject
to Sections 3.1, 3.2 and 3.3, OpticNet shall have all right,  title and interest
in and to the Fabricated Designs and OpticNet Products.

         3.6 Patent Prosecution and Maintenance.

                  (a) Patent Rights in OpticNet or SiTek Technology.  Each party
shall be solely  responsible  for and shall  control  the  preparation,  filing,
prosecution,  grant and maintenance of all patent  applications  and rights with
respect to its respective Technology.

                  (b) Patent Rights in Project  Technology.  Subject to Sections
3.1 and 3.2, the parties shall share joint  responsibility  for the preparation,
filing, prosecution, grant and maintenance of all patent applications and rights
with respect to Project Technology.

                  (c)  Patent  Rights in the  Fabricated  Designs  and  OpticNet
Products.  OpticNet  shall be  solely  responsible  for and  shall  control  the
preparation,   filing,   prosecution,   grant  and  maintenance  of  all  patent
applications  and rights with  respect to the  Fabricated  Designs and  OpticNet
Products.

                  (d) Mutual Assistance.  Each party shall make available to the
other or the  other's  authorized  attorneys,  agents  or  representatives,  the
party's  employees,  agents or  consultants  and any necessary  and  appropriate
assistance  to  enable  the  other  to  file,   prosecute  and  maintain  patent
applications  and  resulting  patents  with  respect to any Project  Technology,
Fabricated Designs or OpticNet Products and the use of the OpticNet Products for
a period of time  sufficient  for a party to obtain the assistance it needs from
such  personnel.  Where

                                       4.

<PAGE>

appropriate,  the  parties  shall  sign or cause to have  signed  all  documents
relating to said patent applications or patents at no charge to the other party.

4.       LICENSE GRANTS

         4.1 License of SiTek Technology. Subject to the terms and conditions of
this Agreement, SiTek hereby grants to OpticNet an exclusive (even as to SiTek),
worldwide,  perpetual,  royalty-free license (except as set forth in Section 5.1
below) to use the SiTek Technology,  to make, have made, develop,  produce, use,
import, sell, offer for sale, market and distribute (through subdistributors and
other channels) the Fabricated Designs and OpticNet Products within the OpticNet
Market.  As  provided  in Section  2.5 above,  OpticNet  shall,  in good  faith,
consider  using  SiTek  as an  alternative  source  for  OpticNet  Products  not
manufactured  by  OpticNet.  OpticNet's  license to the SiTek  Technology  shall
extend solely to use in the OpticNet Market, and nothing in this Agreement shall
be construed as granting to OpticNet  the right to use the SiTek  Technology  in
any field other than the OpticNet Market.  SiTek may use the SiTek Technology in
the Optic Market  solely for the purpose of  fulfilling  a Third Party  Contract
awarded to SiTek by  OpticNet,  and may  sublicense  the SiTek  Technology  to a
subcontractor  of SiTek solely for the purpose of fulfilling  such a Third Party
Contract.

         4.2 License of OpticNet Technology. Subject to the terms and conditions
of this  Agreement,  OpticNet  hereby  grants to SiTek an exclusive  (even as to
OpticNet)  worldwide,  perpetual,  royalty-free  license  to  use  the  OpticNet
Technology and improvements thereto to make, have made, develop,  produce,  use,
import, sell, offer for sale, market and distribute (through subdistributors and
other channels)  products  outside the OpticNet  Market.  SiTek's license to the
OpticNet Technology and improvements  thereto shall extend solely to use outside
the  OpticNet  Market,  and  nothing in this  Agreement  shall be  construed  as
granting to SiTek the right to use the OpticNet  Technology in any manner within
OpticNet Market.

         4.3  Restrictions  on  Sublicenses.  OpticNet  shall  have no  right to
sublicense,  cross-license,  or otherwise transfer any Proprietary Rights in any
SiTek  Technology  to any third  party,  as a  standalone  product  or  process.
However,  OpticNet  shall have the full right to sublicense,  cross-license,  or
otherwise  transfer elements of the SiTek Technology to any third party for sale
or use in the OpticNet  Market without  obtaining a separate  license from SiTek
for such SiTek Technology;  provided,  however, that (i) the SiTek Technology is
an  embedded  element  of an  OpticNet  Product  and such third  party  shall be
restricted  from extracting or using the SiTek  Technology  separately from such
OpticNet  architecture;  (ii)  the  SiTek  Technology  is  used  solely  for the
manufacture,  use or sale of OpticNet Products alone or in connection with third
party products in the OpticNet Market; and (iii) OpticNet pays SiTek the royalty
set forth in Section 5.1 below (an "Authorized Sublicense").

         4.4 Updates and Improvements.  During the term of this Agreement,  each
party will provide the other party with all  improvements,  upgrades and updates
to SiTek Technology or Project Technology, as and when such upgrades and updates
are available.  Each party will reimburse the other for reasonable out-of-pocket
costs associated with transferring such upgrades and updates.

                                       5.

<PAGE>

5.       LICENSE FEES , PROJECT FEES, PAYMENTS AND AUDIT RIGHTS

         5.1 License Fee for SiTek  Technology.  In the event OpticNet  grants a
sublicense  of the SiTek  Technology  in  accordance  with  Section  4.3  above,
OpticNet shall pay SiTek a royalty equal to fifty (50) percent of the sublicense
fee collected by OpticNet.

         5.2  Royalty-Free  Licenses  for Third Party  Contracts.  To the extent
OpticNet  enters  into a Third Party  Contract  with a party other than SiTek to
manufacture  OpticNet  Products solely for OpticNet,  any limited license to the
SiTek Technology  granted in connection  therewith to perform such work shall be
royalty-free as between  OpticNet and SiTek. To the extent that SiTek grants any
limited  license in the SiTek  Technology to a  subcontractor  solely to perform
Third  Party  Contract  work  for  OpticNet,   such  limited  license  shall  be
royalty-free as between OpticNet and SiTek.

         5.3 License  Reports.  In  connection  with any  licenses or  contracts
subject to Sections  5.1 and 5.2 above,  OpticNet  shall  prepare  and  deliver,
within thirty (30) days of the last day of each calendar quarter during the term
of this Agreement, a written report ("License Report") which shall describe: (i)
all Authorized  Sublicenses granted by OpticNet during the immediately preceding
calendar quarter; (ii) all Third Party Contracts entered into by OpticNet during
the immediately preceding calendar quarter;  (iii) all revenue owed and received
in connection therewith; and (iv) such other information as SiTek may reasonably
request.

         5.4 License Payments.  OpticNet shall, at the time it submits a License
Report,  pay to SiTek through  electronic  transfer (as designated by SiTek) the
total royalty due to SiTek as set forth in such License Report.

         5.5 Project  Budget.  SiTek and OpticNet shall agree on  fully-burdened
hourly labor rates (including a reasonable fee) for each major category of labor
to be supplied by SiTek to  OpticNet in support of this  Agreement  as well as a
monthly usage fee for use of SiTek's facility and MEMs production  equipment for
the completion of the Project contemplated by this Agreement.

         5.6 Project  Billing  and  Payment.  SiTek  shall  submit to OpticNet a
written  invoice  on a  monthly  basis  for  its  actual  labor  hours  incurred
performing  any SOW at the agreed  upon labor  billing  rates and  facility  and
equipment usage fees.  OpticNet's  payment shall be due within 30 days after the
receipt of SiTek's invoice.

         5.7 Audit Rights.  OpticNet  shall keep  accurate  books of account and
records covering all transactions  relating to this Agreement,  and SiTek or its
designee  shall have the right at all  reasonable  business  hours upon 48 hours
advance  notice to OpticNet to make  complete  verifications,  examinations  and
audits of said books of account and records and all other documents and material
in the  possession  or under the  control of the other  party  relating  to this
Agreement,  and shall have reasonable access thereto on OpticNet's  premises for
said purposes and for the purpose of making extracts therefrom. OpticNet's books
of account and records shall be considered confidential, Proprietary Information
as defined in Section 7. If, as a result of any verification, examination and/or
audit, it is determined that there is a deficiency or discrepancy in the payment
of any amounts  under this  Agreement,  then the party  owing such amount  shall

                                       6.

<PAGE>

immediately pay such amount,  with interest,  to the other party.  SiTek's costs
and expenses arising out of such verifications, examinations and audits shall be
borne by SiTek;  provided,  however,  that in the event  that as a result of any
such  verification,  examination  and/or audit,  the amount due from OpticNet to
SiTek shall be increased by more than 5%, OpticNet shall reimburse SiTek for the
costs and  expenses  thereof  incurred by SiTek or its  designee.  All books and
records of OpticNet  covering  transactions  relating to this Agreement shall be
kept available until at least three (3) years after such transactions.

6.       REPRESENTATIONS AND WARRANTIES.

         6.1 By SiTek. SiTek represents and warrants to OpticNet as follows:

                  (a) This  Agreement  has been duly  authorized,  executed  and
delivered  by SiTek and  constitutes  a valid and binding  obligation  of SiTek,
enforceable in accordance with its terms.

                  (b) To the best  knowledge of SiTek,  the SiTek  Technology in
general,  and when used in  accordance  with the  licenses  granted  under  this
Agreement, does not and will not infringe any patent, copyright, trade secret or
other proprietary right of any third party.

                  (c) Any Fabricated  Designs and SiTek  Components  provided by
SiTek shall be substantially in compliance with the Specifications.

         6.2 By OpticNet. OpticNet represents and warrants to SiTek as follows:

                  (a)  OpticNet  represents  and  warrants  to SiTek  that  this
Agreement  has been duly  authorized,  executed  and  delivered  by OpticNet and
constitutes a valid and binding obligation of OpticNet enforceable in accordance
with its terms.

                  (b) To the best knowledge of OpticNet,  the Designs do not and
will not infringe any patent, copyright, trade secret or other proprietary right
of any third party.

         6.3 WARRANTY DISCLAIMER. EXCEPT FOR THE LIMITED WARRANTIES SET FORTH IN
SECTIONS 6.1 AND 6.2 ABOVE,  NEITHER PARTY MAKES ANY  REPRESENTATION OR WARRANTY
OF ANY KIND WHETHER EXPRESSED OR IMPLIED (EITHER IN FACT OR BY OPERATION OF LAW)
WITH  RESPECT  TO ITS  PRODUCTS  OR  SERVICES  OR THE  DELIVERABLES,  AND HEREBY
DISCLAIMS ALL SUCH OTHER WARRANTIES INCLUDING ALL WARRANTIES OF MERCHANTABILITY,
FITNESS FOR A PARTICULAR PURPOSE, ACCURACY, AND NON-INFRINGEMENT.

7.       CONFIDENTIALITY

         The parties  acknowledge that the Designs and Technology  identified in
this Agreement constitute  Proprietary  Information (defined below). In addition
each  party  agrees  that all  inventions  (whether  or not  patentable),  trade
secrets, ideas, processes, formulas, materials, chemicals,  technology, know-how
and all other business,  technical and financial information it obtains from the
other  are the  confidential  property  of the  disclosing  party  ("Proprietary

                                       7.

<PAGE>

Information"  of the  disclosing  party).  Except as  expressly  allowed in this
Agreement  the receiving  party will hold in confidence  and not use or disclose
any  Proprietary  Information  of the  disclosing  party during the term of this
Agreement  and  for a  period  of  five  (5)  years  after  termination  of this
Agreement, and its employees shall be similarly bound. The receiving party shall
not be  obligated  under  this  Section 7 with  respect to any  information  the
receiving party can document:

                  (a) is or has become  readily  publicly  available  through no
fault of the receiving party or its employees or agents; or

                  (b) is received  from a third party  lawfully in possession of
such  information  and  lawfully  empowered  to disclose  such  information  and
provided the receiving party abides by all restrictions, if any, imposed by such
third party; or

                  (c) was  rightfully in the  possession of the receiving  party
prior to its disclosure by the other party  provided the receiving  party abides
by all restrictions, if any, imposed on its possession of such information; or

                  (d) was independently developed by employees or consultants of
the receiving  party without use of or access to Proprietary  Information of the
disclosing party; or

                  (e) is necessary in the filing of any patent application.

Notwithstanding  the  foregoing,  the receiving  party may disclose  Proprietary
Information  to the extent it is  required  to be  disclosed  to a  governmental
entity or agency in  connection  with  seeking any  governmental  or  regulatory
registration,  approval or license,  or  pursuant to the lawful  requirement  or
request of a governmental  entity or agency,  provided that reasonable  measures
are taken to obtain confidential  treatment thereof and to guard against further
disclosure.

8.       LIMITATION OF LIABILITY.

         EXCEPT FOR EACH PARTY'S  OBLIGATIONS  WITH RESPECT TO  CONFIDENTIALITY,
INDEMNIFICATION AND ANY INTELLECTUAL  PROPERTY,  NEITHER PARTY WILL BE LIABLE TO
THE  OTHER  WITH  RESPECT  TO ANY  SUBJECT  MATTER OF THIS  AGREEMENT  UNDER ANY
CONTRACT,  NEGLIGENCE,  STRICT  LIABILITY OR OTHER LEGAL OR EQUITABLE THEORY FOR
ANY INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES.

9.       INDEMNIFICATION.

         9.1 By SiTek.  Subject to Section  9.3 below,  SiTek  shall  indemnify,
defend and hold  OpticNet  and its  officers,  directors,  agents and  employees
harmless from liability  resulting from  infringement by the SiTek Technology of
any patent,  copyright,  or misappropriation of any trade secret or violation of
any third party proprietary  rights,  provided SiTek is promptly notified of any
and all threats,  claims and proceedings  related  thereto and given  reasonable
assistance at SiTek's cost and the  opportunity  to assume sole control over the
defense and all negotiations for a settlement or compromise.

                                       8.

<PAGE>

         9.2  By  OpticNet.   Subject  to  Section  9.3  below,  OpticNet  shall
indemnify,  defend  and hold  SiTek  and its  officers,  directors,  agents  and
employees harmless from liability  resulting from infringement by the Designs of
any patent,  copyright,  or misappropriation of any trade secret or violation of
any third party  proprietary  rights,  provided OpticNet is promptly notified of
any and all threats, claims and proceedings related thereto and given reasonable
assistance at OpticNet's  cost and the  opportunity  to assume sole control over
the defense and all negotiations for a settlement or compromise.

         9.3 Limitations. The rights granted to the parties under this Section 9
shall be the sole and exclusive remedy for any alleged  infringement by material
or services provided by the parties of any patent, copyright, trademark or other
proprietary  right. SiTek will have no liability or obligation to OpticNet under
this Section 9 if any alleged patent or copyright  infringement or claim thereof
is based upon the modifications  made by OpticNet to SiTek's software,  hardware
or other  Technology,  use of such Technology in connection with the combination
of equipment,  devices, or software not delivered by SiTek or other combinations
for which it was designed (if such infringement or claim could have been avoided
by the use of such technology with other equipment,  devices or software) or use
of any of SiTek's  software,  hardware,  products or  Technology in a manner for
which it was not intended or use of other than the most  current  release of any
software or hardware  product if such claim could have been  prevented by proper
use of the most current version.

10.      Term and Termination.

         10.1 Term.  This  Agreement will commence as of the Effective Date and,
unless terminated as provided below, shall continue in effect for five (5) years
("Initial  Term").   Thereafter  the  Agreement  will  automatically  renew  for
consecutive one (1) year terms ("Renewal  Terms")  beginning on each anniversary
of  the  Effective  Date,  unless  either  party  shall  have  given  notice  of
termination  upon  sixty  (60)  days'  written  notice  prior  to the end of the
then-current Initial or Renewal Term.

         10.2  Termination  for Cause.  This  Agreement may be terminated in its
entirety by a party upon the occurrence of any of the following events:

                  (a)  Immediately  by OpticNet upon written  notice to SiTek if
SiTek does not use or ceases to use commercially  reasonable  efforts to provide
SiTek Technical Assistance and Support Services or support any SOW;

                  (b) By a party upon sixty (60) days'  written  notice if there
has  been  a  material  breach  of any  representation,  warranty,  covenant  or
obligation contained in this Agreement on the part of the other party; provided,
however, that,  notwithstanding anything else to the contrary, in the event of a
termination  by  SiTek  pursuant  to this  Section  10.2(b),  SiTek  will not be
obligated  to continue  development  work after it gives  notice of  termination
unless the breach is timely cured during such period;

                  (c) If the other party  ceases to do  business,  or  otherwise
terminates its business operations;

                                       9.

<PAGE>

                  (d) If the other party shall fail to promptly  secure or renew
any license,  registration,  permit, authorization or approval necessary for the
conduct of its business in the manner contemplated by this Agreement,  or if any
such  license,  registration,  permit,  authorization  or approval is revoked or
suspended and not reinstated  within sixty (60) days or if  reinstatement is not
possible within sixty (60) days,  diligent  efforts are not being made to effect
such reinstatement; or

                  (e) If  the  other  party  shall  seek  protection  under  any
bankruptcy,  receivership,  trust deed,  creditors  arrangement,  composition or
comparable proceeding, or if any such proceeding is instituted against the other
(and not dismissed within one hundred and twenty (120) days).

         10.3 No  Liability  for  Termination.  Neither  party  shall  incur any
liability  whatsoever  for any damage,  loss or expenses of any kind suffered or
incurred by the other (or for any  compensation  to the other)  arising  from or
incident to any  termination of this Agreement by such party which complies with
the  terms of this  Agreement,  whether  or not such  party is aware of any such
damage, loss or expenses.

         10.4 Effect of  Termination.  In addition to  provisions  that by their
terms survive termination, the following provisions shall survive the expiration
or termination of this Agreement: Sections 2.3, 3, 5, 6, 7, 8, 9, 10, and 11. In
addition,  all remedies for any breaches hereunder will also survive. Each party
will promptly  return all  Proprietary  Information of the other (and all copies
and abstracts  thereof,  except to the extent  necessary to continue to exercise
the licenses hereunder and except that one (1) copy may be retained and shall be
kept in its legal  archives for legal record  keeping  purposes only) that it is
not entitled to under the surviving terms of this Agreement.

         10.5 Licenses Upon Termination.

                  (a) Upon termination of this Agreement by OpticNet pursuant to
Section 10.2(a) above:  (i) OpticNet shall have,  under all of SiTek's rights in
the SiTek Technology an exclusive,  worldwide,  perpetual, license to use, make,
have made, develop,  produce,  import, sell, offer for sale, market,  distribute
and use  SiTek  Technology  for use  with the  Fabricated  Designs  or  OpticNet
Products  in the  OpticNet  Market;  and (ii)  OpticNet  shall have the right to
sublicense  the  SiTek  Technology,  including  the SiTek  Technology,  to third
parties to continue the Project and the  development of the  Fabricated  Designs
and OpticNet  Products on behalf of OpticNet  (provided that such third party is
bound to Section 7).

                  (b) Upon termination of this Agreement by OpticNet pursuant to
Section 10.2(a) above,  (i) SiTek agrees that OpticNet,  its affiliates,  agents
and  customers  will be  immune  from suit by SiTek  under the SiTek  Technology
(including  without  limitation all related  technical  information and know-how
shared or supplied by SiTek under this  Agreement  through the effective date of
such termination and (ii) SiTek further agrees and covenants not to sue OpticNet
or its affiliates,  agents or customers for  infringement  related to any use of
the SiTek Technology.

                                       10.

<PAGE>

         10.6  Termination  Not Sole Remedy.  Termination is not the sole remedy
under this Agreement  and,  whether or not  termination  is effected,  all other
remedies will remain available.

11.      GENERAL.

         11.1  Amendment  and Waiver.  Except as  otherwise  expressly  provided
herein, any provision of this Agreement may be amended and the observance of any
provision of this Agreement may be waived (either generally or in any particular
instance  and  either  retroactively  or  prospectively)  only with the  written
consent of both parties.  However,  it is the intention of the parties that this
Agreement be  controlling  over  additional  or different  terms of any purchase
order, confirmation, invoice or similar document, even if accepted in writing by
both parties, and that waivers and amendments of any provision of this Agreement
shall be effective  only if made by  non-pre-printed  agreements  signed by both
parties and clearly understood by both parties to be an amendment or waiver. The
failure of either party to enforce its rights  under this  Agreement at any time
for any period shall not be construed as a waiver of such rights.

         11.2 Governing Law and Legal Actions.  This Agreement shall be governed
by and construed under the laws of the State of California and the United States
without regard to conflicts of laws provisions thereof. Unless otherwise elected
by OpticNet in writing for a particular  instance  (which OpticNet may do at its
option),  the sole  jurisdiction  and venue for  actions  related to the subject
matter  hereof shall be the  California  state and U.S.  federal  courts  having
within  their  jurisdiction  the  location  of  OpticNet's  principal  place  of
business. Both parties consent to the jurisdiction of such courts and agree that
process  may be served in the  manner  provided  herein for giving of notices or
otherwise as allowed by California  state or U.S.  federal law. In any action or
proceeding to enforce rights under this Agreement, the prevailing party shall be
entitled to recover costs and attorneys' fees.

         11.3 Headings.  Headings and captions are for convenience  only and are
not to be used in the interpretation of this Agreement.

         11.4 Notices.  Any notice or other communication  required or permitted
to be made or given  to  either  party  under  this  Agreement  shall be  deemed
sufficiently  made or given on the date of delivery if delivered in person or by
overnight  commercial  courier  service with  tracking  capabilities  with costs
prepaid,  or three (3) days after the date of mailing if sent by certified first
class U.S. mail, return receipt requested and postage prepaid, at the address of
the parties  set forth below or such other  address as may be given from time to
time under the terms of this notice provision:

                  If to SiTek:                       SiTek, Inc.
                                                     214 East Hacienda Avenue
                                                     Campbell, CA 95008
                                                     Attention:  President

                  If to OpticNet:                    OpticNet, Inc.
                                                     One Post Street, Suite 2500
                                                     San Francisco, CA 94104
                                                     Attention:  President

                                      11.

<PAGE>

         11.5  Entire   Agreement.   This  Agreement   constitutes   the  entire
understanding  and  agreement  with  respect to the  subject  matter  hereof and
supersedes all proposals, oral or written, all negotiations,  conversations,  or
discussions  between or among the parties relating to the subject matter of this
Agreement and all past dealing or industry custom.

         11.6  Severability.  If any  provision of this  Agreement is held to be
illegal or  unenforceable,  that provision shall be limited or eliminated to the
minimum extent  necessary so that this Agreement shall otherwise  remain in full
force and effect and enforceable.

         11.7  Relationship  of  parties.  Nothing  contained  herein  shall  be
construed as creating any agency, partnership, or other form of joint enterprise
between the  parties.  The  parties'  relationship  will be that of  independent
contractors.  The parties  hereto  expressly  understand  and agree that each is
solely  responsible  for all of its employees and agents and its labor costs and
expenses arising in connection therewith.

         11.8  Assignment.  This  Agreement  and the  rights  hereunder  are not
transferable  or  assignable  without the prior  written  consent of the parties
hereto,  except  for  rights to  payment  and  except to a person or entity  who
acquires  all or  substantially  all of a party's  stock,  assets or business to
which  this  Agreement  pertains,   whether  by  sale,  merger,  acquisition  or
otherwise.

         11.9 Publicity and Press Releases. Except to the extent necessary under
applicable laws or for ordinary  marketing  purposes,  the parties agree that no
press  releases  or other  publicity  relating to the  substance  of the matters
contained herein will be made without approval by both parties.  A press release
announcing this Agreement will be jointly developed and released by the parties.

         11.10 Force  Majeure.  No liability or loss of rights  hereunder  shall
result to either party from delay or failure in  performance  caused by an event
of force majeure (that is,  circumstances  beyond the reasonable  control of the
party affected thereby, including, without limitation, acts of God, fire, flood,
war, government action, compliance with laws or regulations (including,  without
limitation,  those related to infringement),  strikes, lockouts or other serious
labor disputes, or shortage of or inability to obtain material or equipment) for
so long as such event of force majeure continues in effect.

         11.11 Remedies. Except as otherwise expressly stated in this Agreement,
the rights and  remedies of a party set forth  herein with respect to failure of
the  other to  comply  with  the  terms of this  Agreement  (including,  without
limitation, rights of full termination of this Agreement) are not exclusive, the
exercise  thereof shall not constitute an election of remedies and the aggrieved
party shall in all events be entitled to seek whatever  additional  remedies may
be available in law or in equity.

         11.12 Compliance with Law; Export Control.  Each party agrees to comply
with the U.S.  Foreign  Corrupt  Practices  Act  (regarding  among other things,
payments to government  officials) and all export laws,  restrictions,  national
security  controls  and  regulations  of the United  States or other  applicable
foreign agency or authority, and not to export or re-export, or allow the export
or  re-export  of any  Proprietary  Information  or any copy or  direct  product
thereof in violation of any such  restrictions,  laws or regulations,  or to any
Group D:1 or E:2 country (or any

                                      12.

<PAGE>

national of such country) specified in the then current Supplement No. 1 to Part
740, or, in violation of the embargo  provisions in Part 746, of the U.S. Export
Administration Regulations (or any successor regulations or supplement),  except
in compliance with and with all licenses and approvals required under applicable
export laws and regulations,  including  without  limitation,  those of the U.S.
Department of Commerce.

         IN WITNESS WHEREOF,  the parties hereto have executed this Agreement as
of the Effective Date.

SITEK, INC.                                OPTICNET, INC.

By:                                        By:
   ----------------------------------         ----------------------------------

Name:                                      Name:
     --------------------------------           --------------------------------

Title:                                     Title:
      -------------------------------            -------------------------------

                                      13.EQUIPMENT SUBLEASE AGREEMENT

              Dated as of September 28th, 2001

              LESSOR: BEI TECHNOLOGIES, INC.   (herein called "LESSOR")
                      ----------------------
              ADDRESS: ONE POST STREET, STE. 2500, SAN FRANCISCO, CA 94104
                       ---------------------------------------------------

              LESSEE: OPTICNET, INC. (herein called "LESSEE")
                      --------------

              ADDRESS: 3167 Corporate Place, Hayward, CA 94545

1. LEASE.  LESSOR  hereby  leases  and/or grants to LESSEE the right to use, and
LESSEE hereby  leases from and/or agrees to accept the right to use,  subject to
the terms and  conditions  herein set forth,  the item(s) of  personal  property
including but not limited to hardware  and/or software and herein referred to as
"Equipment'  described in each Equipment Schedule entered into from time to time
pursuant  to  this  Equipment  Sublease  Agreement  ("Lease  Agreement").   Each
Equipment  Schedule  entered  into by the parties  shall  constitute  a separate
non-cancellable  lease agreement and shall incorporate  therein all of the terms
and  conditions of this Lease  Agreement and contain such  additional  terms and
conditions as agreed upon. The term "LEASE" as used  hereinafter  shall refer to
an individual Equipment Schedule which incorporates this Lease Agreement.  Until
an  Equipment  Schedule is signed by LESSOR,  an  Equipment  Schedule  signed by
LESSEE constitutes an irrevocable offer by LESSEE to lease from LESSOR.

2. TERM. This Lease Agreement shall be effective when signed by both parties and
shall  continue in effect until all  obligations  of LESSEE under each Equipment
Schedule are fully satisfied.

    The Lease Term for each  Equipment  Schedule  shall become  effective on the
Installation Date  ("Commencement  Date").  The Installation Date is the date on
which the  Equipment is  installed  at the  location set forth in the  Equipment
Schedule  ("Equipment  Location") and is accepted by LESSEE as fully operational
and in use by the LESSEE or if LESSEE has fully paid for the  Equipment  and the
Equipment  is already  installed  at the  Equipment  Location  and being used by
LESSEE and LESSOR is purchasing the Equipment  from LESSEE for lease  hereunder,
the  Installation  Date  shall be deemed  to be the date  LESSOR  purchases  the
Equipment  from LESSEE,  said date being defined herein as the date of the check
or wire  transfer to LESSEE  representing  LESSOR'S  payment of the  Equipment's
Purchase  Price.  LESSEE shall promptly sign and deliver to LESSOR a Certificate
of Acceptance  confirming the applicable  Installation  Date. UNLESS LESSEE, NOT
MORE THAN ONE HUNDRED FIFTY (150) DAYS OR LESS THAN SIXTY (60) DAYS PRIOR TO THE
INITIAL  OR  EXTENDED  EXPIRATION  OF THE LEASE,  NOTIFIES  LESSOR IN WRITING BY
CERTIFIED MAIL OF ITS INTENTION NOT TO EXTEND THE LEASE AND EXERCISE  OPTION (A)
OR (B) BELOW, THE LEASE SHALL  AUTOMATICALLY AND CONTINUOUSLY BE EXTENDED ON THE
SAME TERMS AND CONDITIONS FOR SUCCESSIVE  THIRTY (30) DAY PERIODS.  In the event
LESSEE  notifies  LESSOR of its intention  not to extend the LEASE,  then LESSEE
must do one of the  following:  ("(A) Purchase all the Equipment for fair market
value or twenty  percent (20%) of the  Equipment's  original  acquisition  cost,
whichever  is  greater;  or (B)  Extend  the LEASE  for a period of twelve  (12)
additional  months at a fair market  value  monthly  rent equal to 1.734% of the
Equipment's  original  acquisition  cost per month. At the end of said extension
period provided by option (B) LESSEE may (i) return all but not less than all of
the  Equipment  to  LESSOR  in  accordance  with the  terms of the LEASE or (ii)
Purchase all the Equipment for a fair market value to be determined by LESSOR at
its sole and  absolute  discretion.  In the event  LESSEE  elects  option (B) in
accordance  with the terms  hereof,  said option  shall be subject to an updated
credit review and approval of LESSOR in its reasonable discretion.  In the event
LESSOR does not approve option (B), then option (A) shall prevail.

3. RENT.  LESSEE shall pay to LESSOR at its address set forth above,  or at such
other address LESSOR may  hereinafter  designate in writing,  the rent specified
for the  Equipment,  payable in advance,  effective  on the  Commencement  Date.
Subsequent  monthly or other calendar period rental payments shall be due on the
same day of subsequent months or other calendar periods as the Commencement Date
of the LEASE.

4. DISCLAIMER OF WARRANTIES.

         (a) LESSEE ACKNOWLEDGES THAT LESSEE IS NOT RELYING ON LESSOR'S SKILL OR
JUDGMENT TO SELECT OR FURNISH GOODS SUITABLE FOR ANY PARTICULAR PURPOSE.  LESSEE
ACKNOWLEDGES THAT LESSOR HAS NOT MADE AND DOES NOT MAKE ANY WARRANTIES,  EXPRESS
OR IMPLIED, DIRECTLY OR INDIRECTLY,  INCLUDING, WITHOUT LIMITATION, THE WARRANTY
OF  MERCHANTABILITY  AND OF FITNESS,  CAPACITY OR DURABILITY  FOR ANY PARTICULAR
PURPOSE,  AND  WARRANTIES AS TO THE DESIGN OR CONDITION OF THE EQUIPMENT AND THE
QUALITY OF THE MATERIAL OR WORKMANSHIP  OF THE  EQUIPMENT.  LESSOR SHALL HAVE NO
LIABILITY  TO  LESSEE  FOR ANY  CLAIM,  LOSS OR  DAMAGE  OF ANY  KIND OR  NATURE
WHATSOEVER,  INCLUDING ANY SPECIAL,  INCIDENTAL OR CONSEQUENTIAL DAMAGES, TO ANY
EXTENT  WHATSOEVER,  RELATING  TO OR  ARISING  OUT  OF THE  SELECTION,  QUALITY,
CONDITION,  MERCHANTABILITY,  SUITABILITY,  FITNESS, OPERATION OR PERFORMANCE OF
THE EQUIPMENT.  NO DEFECT IN OR UNFITNESS OF THE EQUIPMENT  SHALL RELIEVE LESSEE
OF ITS  OBLIGATIONS  UNDER THE  LEASE.  LESSEE  agrees  that  LESSOR  assumes no
liability for and makes no  representation  as to the treatment by LESSEE of the
LEASE,  the  Equipment  or the rent  payments or other sums due  thereunder  for
financial statement or tax purposes.

         (b) For the term of the LEASE, or any extension thereof,  LESSOR hereby
assigns  to LESSEE  and  LESSEE  may have the  benefit  of any and all  Vendor's
warranties,  service agreements and patent indemnities,  if any, with respect to
the  Equipment  to the extent  assignable  by LESSOR,  provided,  however,  that
LESSEE'S  sole  remedy for the breach of any such  warranty  or  indemnification
shall be against  the Vendor and not against  LESSOR,  nor shall any such breach
have any effect  whatsoever on the rights and  obligations  of either party with
respect to the LEASE.

5. STATUTORY  RIGHTS AGAINST  VENDOR.  LESSEE IS ADVISED THAT IT MAY HAVE RIGHTS
UNDER THE CONTRACT  EVIDENCING THE  ACQUISITION OF THE EQUIPMENT FROM THE VENDOR
AND THAT LESSEE SHOULD  CONTACT THE VENDOR OF THE EQUIPMENT FOR A DESCRIPTION OF
ANY SUCH RIGHTS.

6. EQUIPMENT AND LIABILITY.  LESSOR shall not be liable for specific performance
of the LEASE or for damages if, for any reason, any Vendor fails to accept order
or delays or fails to fill the  order.  LESSEE  agrees to accept  the  Equipment
notwithstanding  any such failure of any Vendor and authorizes LESSOR to add the
serial number of the Equipment to the LEASE.

7. VENDOR NOT AN AGENT.  LESSEE  understands and agrees that neither the Vendor,
nor any  salesman  or other  agent of the  Vendor,  is an  agent of  LESSOR,  no
salesman  or agent of the  Vendor  is  authorized  to waive or alter any term or
condition  of the LEASE,  and no  representation  as to  Equipment  or any other
matter by the Vendor shall in any way affect  LESSEE'S  duty to pay the rent and
perform its other obligations as set forth in the LEASE.

8. PLACE OF USE.  LESSEE  shall keep the  Equipment  at its place of business as
specified  in the  LEASE,  or at such other  place as LESSOR  may  consent to in
writing.  LESSEE  covenants and agrees not to (a) allow the use of the Equipment
by any one other than the  employees  of the LESSEE or  authorized  personnel or
representatives  of LESSOR  pursuant to the terms of that  certain  InterCompany
Agreement  between  LESSEE and LESSOR or (b) rent or sublet the Equipment or any
part thereof.  LESSEE WILL NOT WITHOUT LESSOR'S PRIOR WRITTEN CONSENT, WHICH MAY
BE WITHHELD BY LESSOR AT LESSOR'S SOLE AND ABSOLUTE DISCRETION, ASSIGN THE LEASE
OR ITS INTEREST THEREUNDER.

9. USE AND RETURN OF  EQUIPMENT.  The LESSEE  leases and shall use the Equipment
only for its  intended  purposes  and shall  exercise due and proper care in the
use,  repair and  servicing of the Equipment and at all times and at its expense
shall keep and maintain the  Equipment in good  working  condition,  order,  and
repair.  The LESSEE shall make no alteration to the Equipment  without the prior
written  consent of the LESSOR such consent  being hereby  granted to LESSEE for
those  alterations  specifically  designed  to enhance or repair the  Equipment.
LESSEE represents and warrants that the Equipment will be covered and maintained
under the best  standard  full  service  maintenance  agreement  offered  by the
Vendor,    provided    the   Vendor   is   either   the    original    equipment
manufacturer/licensor or an authorized original equipment  manufacturer/Licensor
maintenance  organization,  or such other maintenance organization authorized by
the original equipment  manufacturer/licensor  (hereinafter  called "Maintenance
Provider"), during the full term of the LEASE or any extension thereof. Upon the
expiration  or  termination  of the  LEASE,  LESSEE  at its sole  expense  shall
forthwith have the Equipment  de-installed and properly prepared for shipment by
the Maintenance Provider,  insure, warrant eligibility for continued maintenance
provider's  best standard and most current  version full service and maintenance
agreement (or, with LESSOR'S  written  consent,  in lieu of such warranty pay to
LESSOR an  inspection  and  refurbishment  fee equal to ten percent (10%) of the
original Equipment cost) and return the Equipment unencumbered to LESSOR, except
for the liens  created by or through  LESSOR or BANKERS (as defined  below),  at
such place  designated  by LESSOR,  in the same  condition  as when  received by
LESSEE , ordinary wear and tear excepted.  LESSOR  reserves the right to approve
or  designate  the carrier and the means of shipment.  However,  if requested by
LESSOR, LESSEE will, prior to shipment, at

                                       1.

<PAGE>

its sole expense,  store the Equipment after  de-installation and packing on its
premises for ninety (90) days. All replacement parts,  additions and accessories
incorporated  in or  affixed  to the  Equipment,  including  but not  limited to
wiring,  software and operating  systems,  at or after the  commencement  of the
LEASE shall become the property of LESSOR.  All related  documentation,  manuals
and service  logs are the  property  of LESSOR and are to be  returned  with the
Equipment.

10. INTENTIONALLY OMITTED.

11. INTENTIONALLY OMITTED.

12. TAXES.  (a) General.  LESSEE assumes  liability for and shall  indemnify and
defend LESSOR against all fees,  taxes, and charges of any nature imposed by any
governmental  authorities upon or relating to the Equipment.  (b) Filing.  If at
any time such taxes, fees, or charges are imposed,  LESSOR (or its agents) shall
make and file any or all  declarations and returns in connection with such taxes
in order to pay the same (unless LESSOR otherwise directs that LESSEE shall make
and file all  declarations  and returns in  connection  with such taxes and send
LESSOR evidence of timely payment).  (c) Rental, Sales, and/or Use Taxes. LESSOR
shall  directly  remit all  rental,  sales  and/or use taxes to the  appropriate
taxing unit and LESSEE  shall  remit to LESSOR,  upon  demand,  any and all such
taxes as LESSOR  shall  require.  (d) Personal  Property  Taxes.  For  Equipment
subject to personal property taxes, to liquidate such taxes LESSEE agrees to pay
LESSOR an annual liquidated amount ("Assessed Amount") which shall be based upon
the Equipment  price (as set forth in the original Vendor  Invoice),  reduced by
depreciation  calculated in accordance  with applicable  depreciation  schedules
used by the  applicable  taxing  jurisdiction  at the  applicable  tax rate. The
Assessed  Amount shall be payable by LESSEE  without  regard to any discounts or
reduction  LESSOR  may  obtain by  reason  of early  payment  or  otherwise.  In
addition,  LESSEE shall pay LESSOR an annual Tax Administration fee equal to ten
percent (10%) of the Assessed Amount charged for each Equipment Schedule, if any
personal  property  taxes are imposed upon  Equipment  subject of that Equipment
Schedule. (e) Audits and Exemption Certificates.  LESSEE will be responsible for
any audit adjustment if a tax exemption  certificate  furnished by LESSEE is not
accepted by the applicable  taxing  authority.  LESSEE will otherwise  indemnify
LESSOR  for taxes,  interest,  penalties  and other sums  charged as a result of
audit  adjustments  occurring  for any  reason  with  respect  to the  LEASE  or
Equipment (including if a certificate is denied).

    LESSOR  reserves  the right to invoice and collect an  estimated  amount for
personal  property taxes each year, such estimate to be based on the most recent
ascertainable assessment.  Upon receipt of an invoice for the actual amount due,
LESSOR will  invoice  LESSEE and LESSEE will pay to LESSOR or LESSOR will rebate
to LESSEE any difference between the actual invoice and the estimated amount.

13. INTENTIONALLY OMMITTED.

14. TITLE. LESSEE agrees and acknowledges that this LEASE is a sublease and that
the Equipment has been originally  leased by LESSOR from Bankers Direct Leasing,
a division of EAB Leasing  Corp.  ("BANKERS")  pursuant to that certain  BANKERS
Master Lease  Agreement  dated as of September  26th,  2001,  between LESSOR and
BANKERS  ("Master  Lease").  LESSEE'S  rights under the LEASE are subject to the
terms and conditions of the Master Lease and expressly  subordinated to BANKERS'
rights under the Master Lease. All Equipment shall remain personal  property and
the title  thereto  shall remain in the name of Bankers  exclusively  unless the
Equipment  is, or  includes,  software  in which  event  and only to the  extent
required by the applicable  license,  title to said software shall remain in the
Licensor. To the extent that the License allows title to software to pass to the
Licensee,  such title shall vest and remain in BANKERS.  To the extent that such
vesting requires a specific written conveyance, LESSEE hereby conveys to BANKERS
any title it has or may hereafter  acquire in the software and  relinquishes any
subsequent claim or title in the software,  including any rights to purchase the
software  and/or retain rights to use the same beyond the Lease Term,  except to
the extent LESSEE may purchase the same or renew the LEASE as provided for under
the LEASE.  If any provision of this  paragraph  requires for its  effectiveness
Licensor's   prior  written  consent  because  the  License  limits   transfers,
encumbrance,  or assignment of the software, then LESSEE shall assist LESSOR, if
so requested, in obtaining such consent. LESSEE shall keep BANKERS' title rights
in the  Equipment  free from any and all  liens,  claims,  and legal  processes,
except for liens  created by or through  LESSOR OR  BANKERS.  LESSEE  shall give
LESSOR immediate notice of any attachment or other judicial  process,  liens, or
claims affecting the Equipment and shall indemnify and save LESSOR harmless from
any loss or damage caused thereby.  To further secure payment to LESSOR,  LESSEE
agrees that each LEASE is cross-collateralized  with all others and in the event
of default by LESSEE of any LEASE,  LESSOR may  exercise its rights and remedies
as if LESSEE defaulted on all LEASES.

    In the event the  Maintenance  Provider  deems it  necessary  to replace any
Equipment with like  equipment,  LESSEE shall  immediately  notify LESSOR of the
same.  However,  no exchange or replacement  shall occur without  LESSOR'S prior
written  approval and consent.  LESSEE  further agrees (a) to take all necessary
and reasonable steps to insure title to the replacement Equipment is, subject to
LESSOR'S  satisfaction,  transferred to BANKERS,  (b) to insure the  replacement
Equipment  as  provided  in  Paragraph  11,  and (c) to pay any and all costs in
connection with or related to such Equipment exchange.

15. FILING. LESSEE, on behalf of LESSEE and LESSOR, hereby authorizes LESSOR and
appoints  LESSOR  its  attorney-in-fact  to  execute  and  file the  LEASE,  any
financing statements or security agreements with respect to the Equipment or any
collateral  provided  by  LESSEE  to  LESSOR  prior  to  or  following  LESSOR'S
acceptance of the LEASE, in any state of the United States. LESSEE shall execute
such supplemental  instruments and financing  statements if LESSOR deems such to
be necessary or advisable and shall  otherwise  cooperate to defend the title of
BANKERS by filing or otherwise.

16. RIGHT OF  INSPECTION.  The LESSOR or BANKERS,  or their  respective  agents,
dealers,  and  representatives  shall  have the right at any time  during  usual
business  hours to inspect the  Equipment  and to have access to the location of
the Equipment.

17.  NON-WAIVER.  LESSOR'S failure at any time to require strict  performance by
LESSEE  of any of the  provisions  of the  LEASE  shall  not  waive or  diminish
LESSOR'S  right  thereafter  to demand strict  compliance  therewith or with any
other  provision.  Waiver of any  default  shall  not  waive any other  default.
LESSOR'S rights under the LEASE are cumulative and not alternative.

18. DEFAULT. Time is of the essence of the LEASE, and no waiver by LESSOR of any
breach or default  shall  constitute  a waiver of any other breach or default by
LESSEE or waiver of any of LESSOR'S  rights.  If LESSEE fails to pay any rent or
other amounts  required  within five (5) days after the same is due and payable,
or if LESSEE fails to observe,  keep or perform any other provision of the LEASE
required to be observed,  kept or performed by LESSEE, or if LESSEE ceases doing
business  as a going  concern,  or if a petition  is filed by or against  LESSEE
under the  Bankruptcy  Act or any  amendment  thereto  (including a petition for
re-organization or an arrangement),  or if a receiver is appointed for LESSEE or
its property,  or if LESSEE  commits an act of  bankruptcy,  becomes  insolvent,
makes an  assignment  for the  benefit of  creditors,  offers a  composition  or
extension  of any of its  indebtedness,  or if  LESSEE  without  LESSOR'S  prior
written consent, attempts to remove or sell or transfer or encumber or sublet or
part with the possession of the Equipment,  or if LESSOR deems itself  insecure,
LESSOR or its  agents  shall have the right to  exercise  any one or more of the
following  remedies:  (a)  to  declare  the  entire  amount  of  rent  hereunder
immediately due and payable  without notice or demand to LESSEE,  (b) to sue for
and recover from the LESSEE the amount  equal to the unpaid  balance of the rent
due and to become due  during the term of the LEASE plus an amount  equal to the
greater  of (i) the fair  market  value of the  Equipment  prior to the event of
default,  or (ii) twenty percent (20%) of the Equipment  Cost, all discounted to
present  value at an annual rate of 6%, (c) to take  possession of any Equipment
without demand or notice wherever same may be located without any court order or
other process of law. Upon retaking  possession of any Equipment,  the LESSOR at
its option may (i) lease repossessed  Equipment or any part thereof to any third
party on such terms and  conditions as the LESSOR may determine or (ii) sell the
Equipment  or any part  thereof to the  highest  bidder at public  auction or at
private sale, and will credit the net amount so realized less expenses  incurred
in  connection  with such  disposition  to the amount due pursuant to (b) above.
LESSEE  hereby  waives  any  and  all  damages  occasioned  by  such  taking  of
possession.  Any said taking of possession  shall not constitute  termination of
the LEASE and shall not relieve LESSEE of its original obligations unless LESSOR
expressly so notifies LESSEE in writing.

    To the extent  permitted by applicable law, LESSEE waives any and all rights
and remedies  conferred  upon a LESSEE by UCC Sections  2A-508  through  2A-522,
including  (without  limitation)  LESSEE'S rights to (a) cancel or repudiate the
LEASE,  (b) reject or revoke  acceptance  of the leased  Equipment,  (c) recover
damages from LESSOR for breach of warranty or for any other reason,  (d) claim a
security interest in any rejected  Equipment in LESSEE'S  possession or control,
(e) deduct from rental payments all or any part of any claimed damages resulting
from LESSOR'S default under the LEASE, (f) accept partial delivery of the leased
Equipment,  (g) "cover" by making any  purchase or lease of other  equipment  in
substitution for Equipment due from LESSOR, (h) recover from LESSOR any general,
special, incidental or consequential damages, for any reason whatsoever, and (i)
specific performance, replevin or the like for any of the leased Equipment.

    To the extent  permitted by applicable  law, LESSEE waives any rights now or
hereafter  conferred  by statute or otherwise  that may require  LESSOR to sell,
re-lease  or  otherwise  use  or  dispose  of any of  the  leased  Equipment  in
mitigation  of LESSOR'S  damages as set forth in the LEASE or that may otherwise
limit or modify any of LESSOR'S rights or remedies under the LEASE. The remedies
provided for in the LEASE shall not be deemed exclusive but shall be cumulative,
and shall be in addition to all other remedies existing at law or in equity.

    Should any legal  proceedings  be instituted by LESSOR to recover any monies
due or to become due under the LEASE and/or for the possession of the Equipment,
LESSEE shall pay LESSOR'S  reasonable  attorney's  fees,  court costs, and other
related  expenses  as well as fees  and  costs  incurred  In  connection  with a
bankruptcy proceeding including, but not limited to, any objections or disputes.
LESSEE and all endorsers and guarantors  hereby consent to LESSOR  granting,  at
its own option,  one or

                                       2.

<PAGE>

more  extensions of the time of payment or performance of any of the obligations
of LESSEE or of any security  agreement  securing the LEASE,  hereby waiving all
notice thereof.

19.  ASSIGNMENT.  NEITHER THE LEASE NOR THE RIGHTS THEREUNDER SHALL BE ASSIGNED,
NOR SHALL ANY OF THE  EQUIPMENT  BE SUBLEASED BY LESSEE  WITHOUT  PRIOR  WRITTEN
CONSENT OF LESSOR. LESSOR OR BANKERS,  WITHOUT NOTICE TO LESSEE, MAY AT ANY TIME
ASSIGN ALL OR PART OF ITS  RESPECTIVE  RIGHT,  TITLE AND  INTEREST IN AND TO THE
LEASE IN AND TO EACH ITEM OF  EQUIPMENT  AND  MONIES TO BECOME  DUE TO LESSOR OR
BANKERS THEREUNDER; and, each of LESSOR or BANKERS may grant a security interest
in the Equipment,  subject to LESSEE'S rights therein as set forth in the LEASE.
Any assignee of LESSOR or BANKERS shall have all of the rights,  but none of the
respective  obligations,  of LESSOR or BANKERS under the LEASE and LESSEE agrees
that it will not assert against any assignee of LESSOR or BANKERS,  any defense,
counterclaim  or offset  that  LESSEE may have  against  LESSOR or  BANKERS,  as
applicable.  LESSEE  acknowledges  that any  assignment or transfer by LESSOR or
BANKERS would neither materially change LESSEE'S duties or obligations under the
LEASE nor materially increase the burdens or risks imposed on LESSEE.

20.  POSSESSION AND QUIET ENJOYMENT.  Subject to BANKERS rights under the Master
Lease,  LESSOR  covenants to and with LESSEE that,  provided LESSEE performs the
conditions  of  the  LEASE  and so  long  as  LESSEE  shall  not  be in  default
thereunder, LESSEE shall peaceably and quietly hold and use the Equipment during
the LEASE term without hindrance or interruption by LESSOR.

21.  LIABILITY  AND  INDEMNITY.  Except  for the  gross  negligence  or  willful
misconduct of LESSOR,  LESSEE agrees to indemnify LESSOR against and hold LESSOR
harmless  from  any  and  all  claims,  (INCLUDING  WITHOUT  LIMITATION,  CLAIMS
INVOLVING STRICT OR ABSOLUTE LIABILITY),  actions,  suits,  proceedings,  costs,
expenses,  damages  and  liabilities  at law or in equity,  including  costs and
reasonable attorney's fees, arising out of, connected with or resulting from the
LEASE  or  the  Equipment,   including,   without  limitation  the  manufacture,
selection, purchase, ownership, delivery; possession, use, operation, condition,
sales,  return,  storage or  disposition  thereof,  any latent or other defects,
whether or not discoverable,  and any claim for patent,  trademark or trade name
infringement.

    LESSOR  shall  not be liable to LESSEE  for any  loss,  damage,  injury,  or
expense of any kind or nature, caused directly or indirectly by any Equipment or
the use or maintenance thereof; the repair,  servicing or adjustment thereto, or
for any delay or failure to provide any thereof,  any interruption of service or
loss of use of the Equipment,  or for any loss of business or damage  whatsoever
and howsoever caused.

    For purposes of this Paragraph,  the term "LESSOR" shall include LESSOR, its
successors  and assigns,  shareholders,  directors,  officers,  representatives,
employees,  and agents,  and the  provisions  of this  Paragraph  shall  survive
expiration of the LEASE with respect to events occurring prior thereto.

22. INTENTIONALLY OMMITTED.

23. REPRESENTATIONS AND WARRANTIES OF LESSEE. LESSEE hereby represents, warrants
and covenants that, with respect to the LEASE, any amendment,  addendum,  rider,
or other attachment executed thereunder:

         (a) The execution, delivery and performance thereof by LESSEE have been
duly authorized by all necessary corporate or business action.

         (b) The individual executing such is duly authorized to do so.

         (c) They  constitute  legal,  valid and  binding  agreements  of LESSEE
enforceable in accordance with their respective terms, subject to any bankruptcy
laws, laws affecting the rights of creditors generally and general principles of
equity.

         (d) Any and all financial  statements or other information with respect
to LESSEE supplied to LESSOR at the time of execution hereof and any amendments,
addendums, or riders hereto are true and complete.

    The foregoing  representations  and warranties shall survive the signing and
delivery of the LEASE and any amendments, addendums, riders or other attachments
thereto.

24.  MISCELLANEOUS.  (a) All  notices  relating  hereto  shall be in writing and
mailed to LESSOR or LESSEE by certified  mail,  return receipt  requested at its
respective address above shown or at any later address last known to the sender.
The LEASE is irrevocable for the full term thereof and for the aggregate  rental
therein  reserved,  and the rent  shall not abate by  reason of  termination  of
LESSEE's  right of  possession  and/or the taking of possession by LESSOR or for
any other reason.  If more than one LESSEE is named in the LEASE,  the liability
of each shall be joint and several.

         (b)  Delinquent  installments  of rent,  or other amounts due under the
LEASE,  of more than five (5) days shall be  subject  to a penalty  equal to ten
(10) percent of such  payment,  plus interest at the rate of one and one-half (1
1/2) percent per month, but in no event greater than the highest lawful rate. If
LESSOR  supplies  LESSEE with labels  stating that Equipment is owned by LESSOR,
LESSEE shall label the  Equipment and shall keep the same affixed in a prominent
place.

         (c) LESSEE agrees to furnish to LESSOR upon request:

                  (1) Such  additional  information  as  LESSOR  may  reasonably
request  concerning  LESSEE and LESSEE's use of the Equipment in order to enable
LESSOR to determine  whether the covenants,  terms,  and provisions of the LEASE
have been complied with by LESSEE.

                  (2)  Copies  of  annual  or  quarterly  financial  statements,
including a copy of the balance sheet and profit and loss statement of LESSEE.

                  (3)  Financial  statements  of  any  corporation  that  owns a
controlling interest in LESSEE.

                  (4) Copies of all Maintenance  Provider's reports covering the
Equipment.

                  (5) A  duly  executed  written  warranty  or  certificate,  as
applicable,  verifying the serial number(s) of the Equipment and any attachments
or  appurtenances  thereto,  specifying  the shipment date for the return of the
Equipment (if the Equipment is being returned to LESSOR), its general condition,
that the Equipment has been and continues to be in use for its intended  purpose
and within the limitations set forth and at the location specified in the LEASE.

         (d) LESSEE shall furnish to LESSOR such  information and data as LESSOR
may from time to time  reasonably  request as to  existence of and status of any
claims for damages  (whether  against the Equipment or against LESSOR or LESSEE)
arising out of the use, operation,  or condition of the Equipment;  the taxes of
the nature  provided to be paid by LESSEE under the  provisions  of Paragraph 12
which have been assessed and the amount of such taxes paid,  and such other data
pertinent to the Equipment  and the  condition,  use, and  operation  thereof as
LESSOR may from time to time reasonably request.

         (e) If LESSEE shall fail to comply with its covenants  and  obligations
under the LEASE, the payment of taxes, assessments, and other charges of keeping
the Equipment in repair and free of liens,  charges,  and  encumbrances,  LESSOR
may,  after  notice to LESSEE  of  LESSOR's  intent,  pay such  charges,  taxes,
assessments or cause compliance with such covenants,  however,  LESSOR shall not
be  obligated  to make  advances to perform  the same,  and all sums so advanced
shall be payable by LESSEE to LESSOR upon  demand as  additional  rent.  No such
advance shall be deemed to relieve LESSEE from any default under the LEASE or be
considered a waiver by LESSOR of any of its rights or remedies.

         (f) In the event a major change in the ownership or financial condition
of LESSEE occurs prior to delivery and acceptance of any Equipment,  and LESSOR,
in its sole discretion deems itself insecure as a result of such change,  LESSOR
reserves the right to cancel the LEASE and LESSEE  hereby  agrees to hold LESSOR
harmless  and to  indemnify  LESSOR from any and all  obligations,  liabilities,
costs and expenses incurred as a result of such cancellation,  including but not
limited to LESSOR's issuance of its purchase order to the Equipment Vendor.

         (g) The LEASE, any amendments,  addendums, riders, or other attachments
made thereto  shall be deemed to have been made and  executed in San  Francisco,
California, regardless of the order in which the signatures of the parties shall
be affixed  thereto,  and shall be interpreted and the rights and liabilities of
the  parties  thereto  determined  in  accordance  with the laws of the State of
California.  LESSEE  AND  LESSOR  HEREBY  WAIVE  THE RIGHT TO TRIAL BY JURY WITH
RESPECT TO ANY CLAIMS OR ANY OTHER MATTERS ARISING OUT OF THE LEASE OR ANY OTHER
AGREEMENT EXECUTED IN CONNECTION THEREWITH.

         (h) LESSEE agrees to pay LESSOR on demand  LESSOR's cost of processing,
documentation,  filing  and  search  fees,  credit  reports  and  other  related
administrative and processing expenses for each LEASE.

         (i)  Notwithstanding  anything to the contrary  contained in the LEASE,
including  but not limited to  Paragraph  18, in addition to all other  remedies
provided  therein,  in the  event  LESSEE  fails  to ship the  Equipment  to the
destination designated by LESSOR on or before the warranted date as specified In
Paragraph 24 (c) (5), LESSEE agrees to

                                       3.

<PAGE>

pay to LESSOR upon demand an amount  equal to the daily rate,  based on a 30 day
month,  of the monthly or other  calendar  period rental for each day after such
date  until such time as the  Equipment  leaves the  LESSEE's  location  for the
destination designated by LESSOR.

         (j) LESSEE and any  guarantor  agree  that any  process  served for any
action or proceeding shall be valid if mailed by certified mail,  return receipt
requested,  with delivery  directed to the LESSEE,  its registered agent, or any
agent  appointed  in writing to accept such  process.  LESSEE and any  guarantor
accordingly hereby expressly appoint CT Corporation  Systems," or its successor,
in  California  as THEIR AGENT TO ACCEPT  SERVICE of such process in  connection
with the LEASE.

25.  SEVERABILITY.  If any  provisions  of the  LEASE or any  remedy  thereunder
provided for is deemed invalid under any applicable law, such provision shall be
inapplicable and deemed omitted,  but the remaining provisions thereof including
remaining  default  remedies,  shall  be given  effect  in  accordance  with the
manifest intent thereof.

26.  CONFLICTS.  If  any of  the  provisions  of the  LEASE  conflict  with  any
provisions of any other documentation relating to the transaction,  the terms of
the LEASE shall prevail and control,  unless  otherwise  agreed to in writing by
LESSOR.

27. ENTIRE AGREEMENT,  WAIVER. This instrument  constitutes the entire agreement
between  the  parties.  No  waiver  by  LESSOR  of any  provision  hereof  shall
constitute a waiver of any other  matter.  This Lease  Agreement may be executed
simultaneously  in any number of counterparts,  each of which shall be deemed an
original but all of which together shall constitute one and the same instrument.
This  Lease  Agreement  including  any  amendments,  additions,  riders or other
attachments  is not valid and binding until  execution  thereof by an authorized
officer of LESSOR in San Francisco, California.

                                              LESSEE's INITIALS [              ]

IN WITNESS WHEREOF, LESSOR and LESSEE have signed this Lease Agreement as of the
date set forth above.

LESSOR:  BEI TECHNOLOGIES, INC.            LESSEE:  OPTICNET, INC.

By:                                        By:
   -------------------------------------      ----------------------------------

ROBERT R. CORR                             (Print or Type Name)

Title: VICE PRESIDENT                      Title:
                                                 -------------------------------

<PAGE>

                            EQUIPMENT SCHEDULE NO. 1
                                       TO
          EQUIPMENT SUBLEASE AGREEMENT DATED AS OF SEPTEMBER 28th, 2001
                                     BETWEEN
                        BEI TECHNOLOGIES, INC., AS LESSOR
                                       AND
                            OPTICNET, INC., AS LESSEE

This  Equipment  Schedule  is  entered  into in  accordance  with the  Equipment
Sublease  Agreement  ("Lease  Agreement")  identified  above.  All the terms and
conditions of the Lease Agreement are hereby incorporated herein and made a part
hereof  as if such  terms  and  conditions  were  set  forth  in this  Equipment
Schedule.  In the event of a conflict  between the terms of the Lease  Agreement
and this Equipment Schedule, the terms of this Equipment Schedule shall prevail.

VENDOR(S):        TO BE IDENTIFIED AND DOCUMENTED AT A LATER DATE

EQUIPMENT DESCRIPTION:

This  Equipment  Schedule shall cover various new  manufacturing  and production
equipment and related soft costs to be more fully described at a later date (the
"Equipment"),  with soft  costs  not to exceed  10% of total  final  cost.  Said
Equipment has a total approximate cost of $708,000 (the "Approximate  Cost") and
is delivered and installed at the Equipment  Location  provided below. The final
monthly equivalent rent and advance rental amounts hereunder shall be determined
by multiplying the monthly rental payment factor  identified below (which may be
adjusted as provided for herein) by the total final cost of the  Equipment to be
covered hereunder.  In connection herewith,  LESSEE hereby agrees to execute and
return to LESSOR any and all documents  that LESSOR shall request within two (2)
days of LESSEE'S receipt thereof.

The Equipment shall also include any periodic updates,  revisions,  upgrades and
enhancements thereto.

EQUIPMENT LOCATION(S): LESSEE agrees that the Equipment will only be located and
used at the following  address(es):  3167 Corporate Place, Hayward, CA 94545 and
at no other location(s) unless authorized in writing by LESSOR for the full term
hereof and any extensions thereof.

INITIAL LEASE TERM:                 Thirty-six (36) months

MONTHLY EQUIVALENT

RENTAL PAYMENT FACTOR:              2.606%

RENTAL PAYMENT:                     Billed  quarterly,  plus  applicable  taxes,
                                    payable in advance

ADVANCE RENTALS:                    LESSEE agrees to an initial payment equal to
                                    a monthly  equivalent  rental  payment which
                                    shall be  applied to the final  amounts  due
                                    under the LEASE.

ADDITIONAL PROVISIONS:              1.  Upon an  event  of  default  by  LESSEE,
                                    LESSOR or BANKERS has the right to cause the
                                    Licensor of any software  under the LEASE to
                                    both  terminate  its License  with LESSEE or
                                    LESSOR  and to cease  providing  maintenance
                                    and  support  services  to LESSEE or LESSOR.
                                    LESSEE  agrees to hold LESSOR  harmless from
                                    any  claims  LESSEE  may have as a result of
                                    said License  termination and termination of
                                    maintenance and support services.

                                    2. In the event a  maintenance  agreement is
                                    covered under the LEASE, LESSEE acknowledges
                                    that LESSOR shall have no obligation for the
                                    performance of such  maintenance  and LESSEE
                                    furthermore  shall hold LESSOR harmless from
                                    any  claims  relating  to  such  maintenance
                                    agreement.

                                    3. All Equipment  description items shall be
                                    deemed  to  be  personal  property  for  all
                                    purposes under the LEASE.

                                    4.   LESSEE   hereby   further   represents,
                                    confirms,  and  warrants  that in the  event
                                    Licensor/Vendor  fails to  provide  support,
                                    service   or   maintenance   or   LESSEE  is
                                    dissatisfied  with the  support,  service or
                                    maintenance  performed  by  Licensor/Vendor,
                                    LESSEE recognizes that such events shall not
                                    affect    LESSEE'S    payment    and   other
                                    obligations  under the LEASE.  LESSEE agrees
                                    that it will not seek any relief from LESSOR
                                    as   a   result    of   the    failure    of
                                    Licensor/Vendor  to  perform  such  support,
                                    service or maintenance.

                                    5.  LESSEE  warrants  that  LESSOR will have
                                    full,   unrestricted   right   to  sell  all
                                    Equipment returned under the LEASE.

                                    6.   INCOME  TAX   INDEMNIFICATION.   LESSEE
                                    acknowledges  that BANKERS shall be entitled
                                    to  all  tax  benefits  of  ownership   with
                                    respect   to   the   Equipment   (the   "Tax
                                    Benefits"), including but not limited to (i)
                                    the  accelerated  cost  recovery  deductions
                                    determined   in   accordance   with  Section
                                    168(b)(1)  of the  Internal  Revenue Code of
                                    1986  for the  Equipment  based  on the cost
                                    thereof, (ii) deductions for interest on any
                                    indebtedness  incurred by BANKERS to finance
                                    the Equipment  and (iii)  sourcing of income
                                    and losses attributable to the LEASE. LESSEE
                                    agrees to take no action  inconsistent  with
                                    the  foregoing  or which would result in the
                                    loss,   disallowance,    unavailability   to
                                    BANKERS  of  all  or any  part  of  the  Tax
                                    Benefits.   LESSEE  hereby  indemnifies  and
                                    holds  harmless  LESSOR and its assigns from
                                    and  against  (i)  any  loss,  disallowance,
                                    unavailability  or  recapture  of all or any
                                    part of the Tax Benefits  resulting directly
                                    or  indirectly  from any action,  failure to
                                    act, statements, misrepresentation or breach
                                    of any  warranty  or covenant  contained  in
                                    this Lease Agreement, amendments, addendums,
                                    riders,  Equipment  Schedules,  or any other
                                    attachments  made  hereto  by  LESSEE of any
                                    nature whatsoever including, but not limited
                                    to,  the   breach  of  any   representation,
                                    warranties  or  covenants  contained in this
                                    section plus (ii) all  interest,  penalties,
                                    fines or  additions  to tax  resulting  from
                                    such loss,  disallowance,  unavailability or
                                    recapture  plus (iii) all taxes  required to
                                    be  paid  by  LESSOR  upon  receipt  of  the
                                    indemnity  set forth  herein.  Any  payments
                                    made by LESSEE to reimburse BANKERS for lost
                                    Tax  Benefits  shall  be  calculated  on the
                                    assumption  that  BANKERS  is subject to the
                                    maximum  Federal  Corporate  Income Tax with
                                    respect  to each  year and all Tax  Benefits
                                    are currently  utilized,  and without regard
                                    to  whether  BANKERS,  or any  members  of a
                                    consolidated  group of which  BANKERS or its
                                    assigns is also a member, is then subject to
                                    any  increase in tax as a result of the loss
                                    of the  Tax  Benefits.  The  term  "BANKERS"
                                    includes  for  all  tax  purposes  BANKERS'S
                                    assigns, heirs,  executors,  administrators,
                                    or other legal representation.

COMMENCEMENT DATE:
The Commencement  Date shall be the first day of the calendar quarter  following
the Installation  Date. A calendar quarter means a three-month period commencing
on January 1, April 1, July 1, and October I of any calendar year.  Charges from
the Installation  Date to the Commencement  Date shall be computed by converting
the monthly or other  calendar  period  rental to a daily rate based on a 30-day
month.  LESSOR assumes no  responsibility  for costs  associated  with returning
non-acceptable  Equipment, and LESSEE agrees to pay, on demand, any and all such
costs.

If on the  Installation  Date there is a difference  between the yield of United
States  Treasury  Obligations for a comparable term of the Lease as published in
The Wall Street Journal and this Equipment Schedule's assigned base rate, LESSOR
may, at its sole discretion,  adjust the monthly  equivalent rent by applying an
adjusted  monthly lease rate factor to the  Equipment  cost.  Therefore,  in the
event of such an adjustment,  the Equipment  Schedule's  base monthly lease rate
factor of .02606 may be  increased  by .011  percent for each  twenty-five  (25)
basis point difference between the aforementioned  Treasury  Obligation rate and
the Equipment  Schedule's assigned base rate. Pro-rata  adjustments will be made
for fractional changes thereof.  This Equipment Schedule's assigned base rate is
4.28 percent.

                                       1.

<PAGE>

IN WITNESS  WHEREOF,  the authorized  representatives  of LESSOR and LESSEE have
hereunto signed as of the date set forth below:

BEI TECHNOLOGIES, INC., as LESSOR        OPTICNET, INC., as LESSEE

By:                                      By:
   -----------------------------------      ------------------------------------

Name: Robert R. Corr                     Name:
                                              ----------------------------------

Title: Vice President                    Title:
                                               ---------------------------------

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

                                       2.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00033-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00033-of-00352.parquet"}]]