Document:

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                                      LEASE

                          dated as of January 17, 2002

                                 by and between

                         LA JOLLA APARTMENT CENTER LLC,
                                   as Landlord

                                       and

                             NEW ENERGY CORPORATION,
                                    as Tenant

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                                        Address:
                                        5685 La Jolla Boulevard
                                        La Jolla, California 92037
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                                TABLE OF CONTENTS

SECTION                              HEADING                                PAGE

SECTION 1.    PARTIES..........................................................1

SECTION 2.    LEASE OF PREMISES................................................1

SECTION 3.    DEFINITIONS......................................................1

SECTION 4.    MINIMUM RENT AND ADJUSTMENTS TO MINIMUM RENT.....................2

SECTION 5.    SECURITY DEPOSIT.................................................3

SECTION 6.    ADDITIONAL CHARGES-ADJUSTMENTS...................................4

SECTION 7.    USES PROHIBITED..................................................5

SECTION 8.    COMPLIANCE WITH LAW..............................................5

SECTION 9.    ALTERATIONS AND ADDITIONS........................................6

SECTION 10.   REPAIRS..........................................................6

SECTION 11.   LIENS............................................................7

SECTION 12.   ASSIGNMENT AND SUBLETTING........................................7

SECTION 13.   HOLD HARMLESS....................................................7

SECTION 14.   SUBROGATION......................................................8

SECTION 15.   LIABILTY INSURANCE...............................................8

SECTION 16.   UTILITIES........................................................9

SECTION 17.   PERSONAL PROPERTY TAXES..........................................9

                                      -i-
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SECTION 18.   RULES AND REGULATIONS............................................9

SECTION 19.   HOLDING OVER.....................................................9

SECTION 20.   ENTRY BY LANDLORD................................................9

SECTION 21.   TENANT'S DEFAULT................................................10

SECTION 22.   REMEDIES UPON TENANT'S DEFAULT..................................10

SECTION 23.   DEFAULT BY LANDLORD.............................................11

SECTION 24.   RECONSTRUCTION..................................................11

SECTION 25.   EMINENT DOMAIN..................................................12

SECTION 26.   PARKING AND COMMON AREAS........................................12

SECTION 27.   SIGNS...........................................................13

SECTION 28.   DISPLAYS........................................................13

SECTION 29.   AUCTIONS........................................................14

SECTION 30.   GENERAL PROVISIONS..............................................14

SECTION 31.   BROKERS.........................................................16

SECTION 32.   COMPLIANCE......................................................17

Exhibit A - Floor Plan
Exhibit B - Rules and Regulations for Standard Lease
Exhibit C - Lease Addendum
Exhibit D - Hazardous Materials Indemnity

                                      -ii-
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                                      LEASE

SECTION 1. PARTIES.

     This  Lease,  dated as of this 17th day of  January,  2002,  is made by and
between La Jolla Apartment Center LLC  ("LANDLORD")  and New Energy  Corporation
("TENANT").

SECTION 2. LEASE OF PREMISES.

     (a) Landlord hereby Leases to Tenant and Tenant hereby leases from Landlord
the Premises shown on Exhibit "A" and further described in Section 3(k).

     (b) This Lease is subject to the terms, covenants and conditions herein set
forth and each party covenants as a material part of the  consideration for this
Lease to keep and perform each and all of its terms, covenants, and conditions.

SECTION 3. DEFINITIONS.

     As used in this Lease, the following terms have the following meanings:

     (a)  Common  Areas:  All areas,  non-structural  portions,  facilities  and
equipment of the Shopping  Center outside the Premises and the premises of other
Tenants,  but within the exterior  boundaries  of the  Shopping  Center that are
provided  and  designated  by Landlord  from time to time for the  general  use,
benefit and/or convenience of Tenant and/or other Tenants of the Shopping Center
and/or their respective  authorized  representatives and invitees.  Common Areas
include, without limitation,  pedestrian walkways and patios,  landscaped areas,
sidewalks,  service  corridors,  public  restrooms,   stairways,   nonstructural
portions of the roofs and the  exterior  walls,  plazas,  malls  (including  any
enclosed malls where climate control is provided),  throughways,  loading areas,
parking areas, and roads.  Landlord shall have the right to regulate or restrict
the use of the Common Areas.

     (b) Index (Section 4(d)): The United States Department of Labor,  Bureau of
Labor  Statistics  Consumer  Price  Index for all  Urban  Consumers,  U.S.  City
Average, Subgroup "All Items" (1982- 84 = 100).

     (c)  Landlord's  Mailing  Address:  c/o  Capital  Growth  Properties,  1120
Silverado St., La Jolla, CA. 92037.

     (d) Lease  tTerm:  The  Lease  term  shall  commence  as of the Lease  Term
Commencement Date and shall continue thereafter for a period of 5 years.

     (e) Lease Term Commencement Date: The earlier of the following dates:

          (i) February 1, 2002;
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          (ii) The date Tenant initially opens for business in the Premises.

     (f)  Minimum  Rent  (Section  4):  $1,577.80  per month,  to be adjusted as
hereinafter provided.

     (g) Premises: That portion of the Shopping Center containing  approximately
square feet of floor area, shown on Exhibit "A" and commonly  designated as 5685
La Jolla Blvd.

     (h)  Rental  Adjustment  Date  (Section  4(d)):  The  first day of the 13th
calendar  month  following  the Lease  Term  Commencement  Date  ("FIRST  RENTAL
ADJUSTMENT DATE") and every 12 months thereafter.

     (i) Security Deposit (Section 5): $1,577.80 has been received.

     (j) Shopping  Center:  The building of which the Premises is a part and any
other buildings and  improvements on the real property  ("PROPERTY")  located at
5685-99 La Jolla Blvd., La Jolla, CA. and further  described on Exhibit "A." The
Shopping Center is known as La Jolla Apartment Center.

     (k) Tenant's Mailing Address: 5687 La Jolla Blvd., La Jolla, CA. 92037.

     (1)  Tenant's  Proportionate  Share:  8.4%.  Such  share is the  percentage
equivalent  of a fraction,  the  numerator of which is the rentable  area of the
Premises, and the denominator of which is the total rental area of the buildings
in the  Shopping  Center  available  for the use and  occupancy  by Tenants,  as
determined by Landlord from time to time on a consistent basis.

     (m) Use:  Tenant  shall use the Premises for sale of medical web sites with
sufficient  retail  component to satisfy  zoning and shall not use or permit the
Premises to be used for any other purpose.

SECTION 4. MINIMUM RENT AND ADJUSTMENTS TO MINIMUM RENT.

     (a) Tenant  agrees to pay to Landlord the minimum rent,  without  notice or
demand,  in  advance,  on or before  the first day of each and every  successive
calendar month during the Lease Term,  commencing on the Lease Term Commencement
Date, except the first month's rent shall be paid upon the execution hereof.

     (b) Rent for any  period  which is for less than one (1)  month  shall be a
prorated portion of the monthly installment herein, based upon a thirty (30) day
month.  All rent shall be paid to  Landlord,  without  deduction  or offset,  in
lawful  money of the United  States of America and at such place as Landlord may
from time to time designate in writing.

     (c)  Tenant  shall  pay as  additional  rent all sums  required  to be paid
pursuant to the terms of this Lease.  All amounts  required to be paid by Tenant
hereunder are sometimes collectively referred to as "RENT" or "RENTAL."
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     (d) The Minimum Rent set forth at Section 3(f) shall be adjusted commencing
on the First Rental Adjustment Date and thereafter as set forth in Section 3(h).
Adjustments,  if any,  shall be based only upon increases (if any) in the Index,
not to exceed 8% per year. The index in publication  three (3) months before the
Lease Term Commencement Date shall be the "Base Index." The index in publication
three (3) month  before each  Rental  Adjustment  Date shall be the  "Comparison
Index." As of each Rental  Adjustment  Date,  the Minimum Rent  payable  monthly
shall be determined by increasing the initial Minimum Rent by a percentage equal
to the percentage increase,  if any, in the applicable Comparison Index over the
Base Index. If the Comparison  Index for any Rental  Adjustment Date is equal to
or less than the Comparison Index for any preceding  Rental  Adjustment Date (or
the Base Index in the case of the First  Rental  Adjustment  Date),  the Minimum
Rent for the ensuing  period  shall  remain the amount of Minimum  Rent  payable
monthly  during the preceding  period.  When the Minimum Rent payable as of each
Rental  Adjustment  Date is  determined,  Landlord  shall  promptly  give Tenant
written notice of such adjusted  Minimum Rent. The Minimum Rent so adjusted from
time to time shall be the "Minimum Rent" for all purposes  under this Lease.  If
at any Rental  Adjustment  Date the Index no longer exists in the form described
in this Lease,  Landlord may substitute any  substantially  equivalent  official
index  published by the Bureau of Labor  Statistics or its  successor.  Landlord
shall use any appropriate  conversion  factors to accomplish such  substitution.
The substitute index shall then become the "Index" hereunder.

SECTION 5. SECURITY DEPOSIT.

     Concurrently  with Tenant's  execution of this Lease,  Tenant has deposited
with  Landlord  the  Security  Deposit.  Said sum shall be held by  Landlord  as
security for the faithful performance by Tenant of all the terms, covenants, and
conditions  of this Lease to be kept and  performed  by Tenant  during the Lease
term. If Tenant defaults with respect to any provision of this Lease, including,
but not limited to, the provisions relating to the payment of rent, Landlord may
(but  shall not be  required  to) use,  apply or  retain  all or any part of the
Security Deposit for the payment of any rent or any other sum in default, or for
the payment of any amount which Landlord may spend or become  obligated to spend
by reason of Tenant's default,  or to compensate  Landlord for any other loss or
damage which Landlord may suffer by reason of Tenant's  default.  If any portion
of said deposit is so used or applied, within five (5) days after written demand
therefor,  Tenant shall  deposit cash with  Landlord in an amount  sufficient to
restore the Security  Deposit to its original amount and Tenant's  failure to do
so shall be a default under this Lease.  Landlord  shall not be required to keep
the Security  Deposit  separate from its general funds,  and Tenant shall not be
entitled to  interest  on such  deposit.  If Tenant  shall fully and  faithfully
perform  every  provision  of this Lease to be  performed  by it,  the  Security
Deposit or any balance  thereof  shall be returned to Tenant (or, at  Landlord's
option,  to the last  assignee of Tenant's  interest  hereunder)  within 21 days
following  expiration  of  the  Lease  term.  In the  event  of  termination  of
Landlord's  interest in this Lease,  Landlord  shall  transfer  said  deposit to
Landlord's  successor  in  interest  and  thereafter  shall be  relieved  of all
responsibility with respect to the Security Deposit.
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SECTION 6. ADDITIONAL CHARGES-ADJUSTMENTS.

     (a) In addition to the Minimum Rent  provided in Section 3(f)  hereinabove,
and commencing at the same time as any rental commences under this Lease, Tenant
shall pay to Landlord the following items, herein called Adjustments:

          (1) All real  estate  taxes and  insurance  premiums  relating  to the
     Premises,  including land, building,  and improvements  thereon.  Said real
     estate taxes shall include all real estate taxes and  assessments  that are
     levied upon and/or assessed against the Premises, including any taxes which
     may be levied on rents. Said insurance shall include all insurance premiums
     for  fire,  extended  coverage,  liability,  and any other  insurance  that
     Landlord deems necessary on the Premises. Such taxes and insurance premiums
     for purposes of this Section  6(a)(1)  shall be reasonably  apportioned  in
     accordance  with the total  rentable  area of the Premises as it relates to
     the total rentable area of the Shopping Center.

          (2) Tenant's Proportionate Share of:

               (i) All real estate taxes, including  assessments,  all insurance
          costs,  and all costs to  maintain,  repair,  service  and replace the
          Common Areas;

               (ii) Reasonable reserves for the costs of repairing,  re-roofing,
          painting and resurfacing the Common Areas;

               (iii) All costs to supervise  and  administer  the Common  Areas.
          Said costs may include a property  management  fee in connection  with
          same and shall in any event include a fee to Landlord to supervise and
          administer  same in an amount equal to ten percent  (10%) of the total
          costs of Section 6(a)(2)(i) above;

               (iv) Any  parking  charges,  utilities  surcharges,  or any other
          costs  levied,  assessed  or imposed  by, or at the  direction  of, or
          resulting from statutes or regulations,  or  interpretations  thereof,
          promulgated by any  governmental  authority in connection with the use
          or  occupancy of the  Premises or the parking  facilities  serving the
          Premises; and

               (v) Any  costs  to  inspect,  repair,  maintain  or  replace  the
          heating,  air conditioning  and fire protection  systems and equipment
          (including fire sprinklers)  serving the Premises,  including the cost
          of  a  preventive  maintenance  contract  providing  for  the  regular
          inspection and maintenance of same.  Landlord shall be responsible for
          obtaining  a service  contract  for  repairs  and  maintenance  of the
          heating and air conditioning system serving the Premises.

     (b) Tenant shall pay these adjustments on a monthly basis concurrently with
the payment of Minimum Rent. Tenant shall continue to make said monthly payments
until notified by Landlord of a change thereof. By March 1 of each year Landlord
shall endeavor to give Tenant a statement  showing the total Adjustments for the
Shopping  Center  for the  prior  calendar  year and  Tenant's  allocable  share
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thereof,  prorated from the Lease Term Commencement Date. In the event the total
of the monthly  payments  which Tenant has made for the prior  calendar  year is
less than Tenant's  actual share of such  Adjustments  then Tenant shall pay the
difference  in a lump sum within ten days after receipt of such  statement  from
Landlord.  Tenant shall concurrently pay the difference in monthly payments made
in the then  calendar  year and the  amount of monthly  payments  which are then
calculated  as monthly  Adjustments  based on the prior year's  experience.  Any
overpayment  by Tenant shall be credited  towards the monthly  Adjustments  next
coming due.

     (c) The actual Adjustments for the prior year shall be used for purposes of
calculating the anticipated  monthly  Adjustments for the then current year with
actual  determination  of such  Adjustments  after each  calendar  year as above
provided;  excepting  that in any year in which  re-roofing  or  resurfacing  is
contemplated,  Landlord  shall be permitted to include the  anticipated  cost of
same as part of the estimated  monthly  Adjustments.  Even though the Lease term
has expired and Tenant has vacated the Premises, when the final determination is
made of  Tenant's  share of said  Adjustments  for the year in which  this Lease
terminates,  Tenant shall  immediately  pay any increase due over the  estimated
Adjustments  previously  paid and,  conversely,  any  overpayment  made shall be
immediately rebated by Landlord to Tenant, PROVIDED,  HOWEVER, in no event shall
payments representing reserves be required to be rebated. Failure of Landlord to
submit  statements  as called for  herein  shall not be deemed to be a waiver of
Tenant's requirement to pay sums as herein provided.

SECTION 7. USES PROHIBITED.

     Tenant shall not do or permit  anything to be done in or about the Premises
nor bring or keep anything  therein which is not within the permitted use of the
Premises,  which will in any way increase  the  existing  rates of or affect any
fire or other  insurance  upon the Shopping  Center or any of its  contents,  or
cause a cancellation of any insurance policy covering the Shopping Center or any
part thereof or any of its contents.  Tenant shall not do or permit  anything to
be done in or about the  Premises  which will in any way  obstruct or  interfere
with the rights of other  Tenants or occupants of the Shopping  Center or injure
or annoy them or use or allow the Premises to be used for any improper, immoral,
unlawful or objectionable  purpose; nor shall Tenant cause,  maintain, or permit
any nuisance in, on or about the  Premises.  Tenant shall not commit or allow to
be committed any waste in or upon the Premises.

SECTION 8. COMPLIANCE WITH LAW.

     Tenant  shall not use the  Premises,  or permit  anything  to be done in or
about  the  Premises,  which  will in any way  conflict  with any law,  statute,
ordinance or governmental rule or regulation now in force or which may hereafter
be enacted or promulgated.  Tenant shall, at its sole cost and expense, promptly
comply with all laws, statutes,  ordinances and governmental rules,  regulations
or  requirements  now in force or which may  hereafter  be in force and with the
requirements  of any board of fire  underwriters  or other similar bodies now or
hereafter  constituted relating to or affecting the condition,  use or occupancy
of Premises, excluding structural changes not related to or affected by Tenant's
improvements or acts. The judgment of any court of competent jurisdiction or the
<PAGE>
admission of Tenant in any action against  Tenant,  whether  Landlord be a party
thereto  or not,  that  Tenant  has  violated  any law,  statute,  ordinance  or
governmental rule, regulation or requirement, shall be conclusive of that act as
between Landlord and Tenant.

SECTION 9. ALTERATIONS AND ADDITIONS.

     Tenant shall not make or allowed to be made any  alterations,  additions or
improvements  to or of the Premises or any part thereof  without first obtaining
the written consent of Landlord.  Any alterations,  additions or improvements to
or of said Premises,  including, but not limited to wall covering,  paneling and
built-in cabinet work, but excepting movable furniture and trade fixtures, shall
at once  become  a part of the  realty  and  belong  to  Landlord  and  shall be
surrendered with the Premises.  In the event Landlord  consents to the making of
any alterations,  additions or improvements to the Premises by Tenant,  the same
shall  be made by  Tenant  at  Tenant's  sole  cost and  expense,  in a good and
workmanlike  manner in  accordance  with all  applicable  laws  (including  laws
relating  to  the  use  of  hazardous  materials  such  as   asbestos-containing
materials) and diligently  completed.  Upon the expiration or sooner termination
of the Lease term, Tenant shall, upon written demand by Landlord, given at least
thirty (30) days prior to the end of the Lease Term,  at Tenant's  sole cost and
expense,  forthwith  and  with  all  due  diligence,   remove  any  alterations,
additions, or improvements made by Tenant, designated by Landlord to be removed,
and Tenant  shall,  forthwith and with all due  diligence,  at its sole cost and
expense, repair any damage to the Premises caused by such removal.

SECTION 10. REPAIRS.

     (a) By  entry  hereunder,  Tenant  shall be  deemed  to have  accepted  the
Premises as being in good, sanitary order,  condition and repair.  Tenant shall,
at Tenant's  sole cost and  expense,  keep the Premise and every part thereof in
good  condition  and repair  (except as  hereinafter  provided  with  respect to
Landlord's   obligations)   including  without   limitation,   the  maintenance,
replacement  and repair of any storefront,  doors,  window  casements,  glazing,
plumbing,  pipes, electrical wiring and lighting fixtures and conduits,  heating
and air conditioning system (when there is an air conditioning  system).  Tenant
shall,  upon the expiration or sooner  termination of this Lease,  surrender the
Premises to Landlord in good condition,  broom clean, ordinary wear and tear and
damage from causes beyond the reasonable control of Tenant excepted.  Any damage
to adjacent Premises caused by Tenant's use of the Premises shall be repaired at
the sole cost and expense of Tenant.

     (b)  Notwithstanding  any other provision  hereof,  Landlord at its expense
shall  maintain  and repair the  structural  portions  of the  Shopping  Center,
including the exterior  walls and the  structural  portions of the roof,  unless
such maintenance and repair are caused in part or in whole by the act,  neglect,
fault or omission of any duty by the Tenant,  its agents,  servants,  employees,
invites,  or any damage  caused by breaking and  entering,  in which case Tenant
shall pay to Landlord the actual cost of such maintenance and repairs.  Landlord
shall not be liable  for any  failure to make such  repairs  or to  perform  any
maintenance  unless such failure  shall persist for an  unreasonable  time after
written  notice of the need of such repairs or  maintenance is given to Landlord
<PAGE>
by Tenant.  Except as provided in section 24 hereof, there shall be no abatement
of rent and no liability  of Landlord by reason of an injury to or  interference
with Tenant's  business  arising from the making of any repairs,  alterations or
improvements  in or to any portion of the Shopping  Center or the Premises or in
or to fixtures,  appurtenances and equipment therein. Tenant waives the right to
make repairs at  Landlord's  expense  under any law statute or ordinance  now or
hereafter in effect.

SECTION 11. LIENS.

     Tenant  shall keep the  Premises and the property in which the Premises are
situated  free  from any  liens  arising  out of any work  performed,  materials
furnished  or  obligations  incurred  by or on behalf of  Tenant.  Landlord  may
require,  at Landlord's sole option,  that Tenant shall provide to Landlord,  at
Tenant's sole cost and expense, a lien and completion bond in an amount equal to
one  and  one-half  (1-1/2)  times  the  estimated  cost  of  any  improvements,
additions,  repairs or alterations in the Premises which Tenant desires to make,
to insure Landlord against any liability for mechanics' and materialmen's  liens
and to insure completion of the work.

SECTION 12. ASSIGNMENT AND SUBLETTING.

     Tenant  shall not  either  voluntarily,  or by  operation  of law,  assign,
transfer,  mortgage,  pledge, hypothecate or encumber this Lease or any interest
therein,  and shall not sublet the Premises or any part thereof, or any right or
privilege appurtenant thereto, or allow any other person (the employees, agents,
servants and invitees of Tenant excepted) to occupy or use the Premises,  or any
portion thereof,  without first obtaining the written consent of Landlord, which
consent  shall  not be  unreasonably  withheld.  A  consent  to one  assignment,
subletting,  occupation  or use by any other  person shall not be deemed to be a
consent  to any  other  assignment,  subletting,  occupation  or use by  another
person.  Consent to any such  assignment or  subletting  shall in no way relieve
Tenant of any  liability  under this Lease.  Any such  assignment  or subletting
without  such  consent  shall be void,  and shall,  at the  option of  Landlord,
constitute  default  under the terms of this Lease.  In the event that  Landlord
shall consent to a sublease or assignment  hereunder,  Tenant shall pay Landlord
reasonable  fees,  not to exceed  Five  Hundred  and no/100  Dollars  ($500.00),
incurred in connection  with the processing of documents  necessary to giving of
such consent.

SECTION 13. HOLD HARMLESS.

     (a) Tenant shall indemnify and hold harmless  Landlord against and from any
and all claims  arising from Tenant`s use of the Premises or from the conduct of
its business or from any  activity,  work,  or other  things done,  permitted or
suffered by Tenant in or about the  Premises,  and shall  further  indemnify and
hold  harmless  Landlord  against and from any and all claims  arising  from any
breach or default in the  performance  of any  obligation on Tenant's part to be
performed  under the terms of this Lease,  or arising from any act or negligence
of Tenant, or any officer,  agent,  employee,  guest, or invitees of Tenant, and
from all  costs,  attorneys'  fees,  and  liabilities  incurred  in or about the
defense of any such claim or any action or proceeding  brought  thereon.  If any
action or proceeding be brought against Landlord by reason of such claim, Tenant
upon notice from Landlord  shall defend the same at Tenant's  expense by counsel
reasonably  satisfactory  to  Landlord.  Tenant,  as  a  material  part  of  the
<PAGE>
consideration  to  Landlord,  hereby  assumes  all risk of damage to property or
injury to persons  in,  upon or about the  Premises,  from any cause  other than
Landlord's  negligence;  and Tenant hereby waives all claims in respect  thereof
against  Landlord.  Tenant  shall  give  prompt  notice to  Landlord  in case of
casualty or accidents in the Premises.

     (b)  Landlord  or its agents  shall not be liable for any loss or damage to
persons or property resulting from fire, explosion, falling plaster, steam, gas,
electricity,  water or rain which may leak from any part of the Shopping  Center
or from the pipes, appliances, plumbing, sparks therein or from the roof, street
or from any other place  resulting from dampness or any other cause  whatsoever,
unless caused by or due to the negligence of Landlord,  its agents,  servants or
employees.  Landlord or its agents shall not be liable for interference with the
light, air, or for any latent defect in the Premises.

SECTION 14. SUBROGATION.

     As long as their respective insurers so permit,  Landlord and Tenant hereby
mutually waive their  respective  rights of recovery  against each other for any
loss insured by fire,  extended coverage and other property  insurance  policies
existing for the benefit of the  respective  parties.  Each party shall apply to
their  insurers to obtain  said  waivers.  Each party  shall  obtain any special
endorsements,  if required  by their  insurer to  evidence  compliance  with the
aforementioned waiver.

SECTION 15. LIABILITY INSURANCE.

     Tenant  shall,  at Tenant's  expense,  obtain and keep in force  during the
Lease term a policy of commercial general liability  insurance  (sometimes known
as comprehensive  public liability insurance) insuring Landlord and Tenant (and,
if requested by Landlord,  Landlord's  lender and property  manager) against any
liability for bodily injury, property damage (including loss of use of property)
and personal injury arising out of the ownership,  use, occupancy or maintenance
of the Premises and all areas  appurtenant  thereto.  Such insurance shall be in
the amount of not less than  $1,000,000  per  occurrence.  The limit of any such
insurance shall not, however,  limit the liability of Tenant  hereunder.  Tenant
may provide this insurance under a blanket policy,  PROVIDED that said insurance
shall have a Landlord's  protective  liability  endorsement attached thereto. If
Tenant  shall fail to procure and maintain  said  insurance,  Landlord  may, but
shall not be required  to,  procure  and  maintain  same,  but at the expense of
Tenant. Insurance required hereunder shall be in companies rated A:XII or better
as set forth in the most current "Best's Key Rating Guide." Tenant shall deliver
to Landlord,  prior to right of entry, copies of policies of liability insurance
required  herein or  certificates  evidencing  the existence and amounts of such
insurance with loss payable clauses satisfactory to Landlord. No policy shall be
cancelable  or subject to  reduction  of coverage.  All such  policies  shall be
written as primary policies not contributing  with and not in excess of coverage
which Landlord may carry.
<PAGE>
SECTION 16. UTILITIES.

     Tenant shall pay for all water,  gas, heat,  light,  power,  sewer charges,
telephone service and all other services and utilities supplied to the Premises,
together with any taxes thereon. If any such services are not separately metered
to Tenant, Tenant shall pay a reasonable proportion to be determined by Landlord
of all charges jointly metered with other Premises.

SECTION 17. PERSONAL PROPERTY TAXES.

     Tenant shall pay, or cause to be paid, before delinquency any and all taxes
levied or assessed  and which become  payable  during the Lease term upon all of
Tenant's Leasehold improvements,  equipment,  furniture,  fixtures and any other
personal  property located in the Premises.  In the event any or all of Tenant's
Leasehold  improvements,  equipment,  furniture,  fixtures  and  other  personal
property shall be assessed and taxed with the real property, Tenant shall pay to
Landlord its share of such taxes  within ten (10) days after  delivery to Tenant
by  Landlord of a statement  in writing  setting  forth the amount of such taxes
applicable to Tenant's property.

SECTION 18. RULES AND REGULATIONS.

     Tenant shall  faithfully  observe and comply with the rules and regulations
that Landlord shall from time to time  promulgate  and/or modify.  The rules and
regulations  shall be binding  upon  Tenant  upon  delivery of a copy of them to
Tenant.  Landlord shall not be responsible to Tenant for the  nonperformance  of
any said rules and regulations by any other Tenants or occupants.

SECTION 19. HOLDING OVER.

     It Tenant  remains in  possession of the Premises or any part thereof after
the expiration of the Lease term with the express  written  consent of Landlord,
such occupancy  shall be a tenancy from month to month at a rental in the amount
of 125% of the last  monthly  Minimum  Rent,  plus  all  other  charges  payable
hereunder, and upon all the terms hereof applicable to a month to month tenancy.

SECTION 20. ENTRY BY LANDLORD.

     Landlord  reserves,  and shall at any and all times during  business  hours
have,  the right to enter the  Premises  to  inspect  the same,  to submit  said
Premises   to   prospective   purchasers   or  Tenants,   to  post   notices  of
non-responsibility,  to repair the  Premises  and any  portion  of the  Shopping
Center of which the  Premises  are a part that  Landlord  may deem  necessary or
desirable, without abatement of rent, and may for that purpose erect scaffolding
and other necessary structures where reasonably required by the character of the
work to be performed,  always  providing that the entrance to the Premises shall
not be unreasonably  blocked thereby, and further providing that the business of
Tenant shall not be interfered with unreasonably. Tenant hereby waives any claim
for damages or for any injury or inconvenience to or interference  with Tenant's
business,  any loss of occupancy or quiet  enjoyment  of the  Premises,  and any
<PAGE>
other loss  occasioned  thereby.  Landlord  at any and all times  shall have the
right to use any and all means which Landlord may deem proper to open said doors
in an emergency,  in order to obtain entry to the Premises without  liability to
Tenant except for any failure to exercise due care for Tenant's property and any
entry to the Premises  obtained by Landlord by any of said means,  or otherwise,
shall not under any  circumstances  be  construed  or deemed to be a forcible or
unlawful  entry into, or a detainer of, the  Premises,  or an eviction of Tenant
from the Premises or any portion thereof.

SECTION 21. TENANT'S DEFAULT.

     The occurrence of any one or more of the following  events shall constitute
a default and breach of this Lease by Tenant.

          (a) The vacating or abandonment of the Premises by Tenant.

          (b) The  failure  by Tenant to make any  payment  of rent or any other
     payment  required to be made by Tenant  hereunder,  as and when due,  where
     such failure  shall  continue for a period of three (3) days after  written
     notice thereof by Landlord to Tenant.

          (c) The failure by Tenant to observe or perform any of the  covenants,
     conditions  or  provisions  of this Lease to be  observed or  performed  by
     Tenant,  other than  described  in (b),  above,  where such  failure  shall
     continue for a period of thirty (30) days after written  notice  thereof by
     Landlord  to Tenant;  PROVIDED,  HOWEVER,  that if the  nature of  Tenant's
     default is such that more than thirty (30) days are reasonably required for
     its cure,  Tenant shall not be deemed to be in default if Tenant  commences
     such cure  within said  thirty  (30) day period and  thereafter  diligently
     prosecutes such cure to completion.

          (d)  The  making  by  Tenant  of any  general  assignment  or  general
     arrangement  for the  benefit  of  creditors;  or the  filing by or against
     Tenant of a petition to have Tenant  adjudged a bankrupt,  or a petition or
     reorganization or arrangement under any law relating to bankruptcy (unless,
     in the case of a  petition  filed  against  Tenant,  the same is  dismissed
     within sixty (60) days);  or the  appointment of a trustee or a receiver to
     take  possession of  substantially  all of Tenant's  assets  located at the
     Premises or of Tenant's  interest in this Lease,  where  possession  is not
     restored to Tenant within thirty (30) days; or the attachment, execution or
     other judicial seizure of  substantially  all of Tenant's assets located at
     the Premises or of Tenant's  interest in this Lease,  where such seizure is
     not discharged within thirty (30) days.

SECTION 22. REMEDIES UPON TENANT'S DEFAULT.

     In the event of any such  default or breach by Tenant,  Landlord may at any
time thereafter,  in its sole  discretion,  with or without notice or demand and
without  limiting  Landlord in the exercise of a right or remedy which  Landlord
may have by reason of such default or breach:
<PAGE>
          (a)  Terminate  Tenant's  right to  possession  of the Premises by any
     lawful  means,  in which case this Lease shall  terminate  and Tenant shall
     immediately surrender possession of the Premises to Landlord. In such event
     Landlord  shall be entitled to recover from Tenant all damages  incurred by
     Landlord by reason of Tenant's default  including,  but not limited to, the
     cost of  recovering  possession of the  Premises;  expenses of  re-letting,
     including necessary  renovation and alteration of the premises;  reasonable
     attorneys'  fees;  the  worth  at the time of  award  by the  court  having
     jurisdiction  thereof  of the  amount  by which the  unpaid  rent and other
     charges and adjustments called for herein for the balance of the Lease term
     after the time of such award  exceeds  the amount of such loss for the same
     period that Tenant proves could be reasonably avoided;  and that portion of
     any leasing  commission  paid by Landlord and  applicable  to the unexpired
     term of this Lease.  Unpaid  installments  of rent or other sums shall bear
     interest from the date due at the maximum legal rate; or

          (b) Maintain  Tenant's right to  possession,  in which case this Lease
     shall  continue in effect  whether or not Tenant shall have  abandoned  the
     premises.  In such event  Landlord  shall be  entitled  to  enforce  all of
     Landlord's  rights and remedies  under this Lease,  including  the right to
     recover the rent and any other  charges and  adjustments  as may become due
     hereunder; or

          (c)  Pursue  any  other  remedy  or  combination  of  remedies  now or
     hereafter available to Landlord under the laws or judicial decisions of the
     state in which the Premises are located.

SECTION 23. DEFAULT BY LANDLORD.

     Landlord  shall  not  be  in  default  unless  Landlord  fails  to  perform
obligations required of Landlord within a reasonable time, but in no event later
than thirty  (30) days after  written  notice by Tenant to  Landlord  and to the
holder of any first  mortgage or deed of trust  covering the premises whose name
and  address  shall  have  theretofore  been  furnished  to Tenant  in  writing,
specifying wherein Landlord has failed to perform such obligation. If the nature
of  Landlord's  obligation  is such that more than thirty (30) days are required
for  performance  then  Landlord  shall not be in default if Landlord  commences
performance  within  such  thirty  (30) day  period  and  thereafter  diligently
prosecutes  the same to  completion.  In no event shall Tenant have the right to
terminate  this Lease as a result of  Landlord's  default and Tenant's  remedies
shall be limited to damages and/or an injunction.

SECTION 24. RECONSTRUCTION.

     (a) In the event the premises  are damaged by fire or other perils  covered
by extended  coverage  insurance,  Landlord agrees to forthwith repair same, and
this Lease shall  remain in full force and effect,  except that Tenant  shall be
entitled  to a  proportionate  reduction  of the  minimum  rent from the date of
damage and while such repairs are being made, such proportionate reduction to be
based  upon the extent to which the  damage  and  making of such  repairs  shall
<PAGE>
reasonably interfere with the business carried on by Tenant in the Premises.  If
the  damage is due to the fault or  neglect  of Tenant or its  employees,  there
shall be no abatement of rent.

     (b) In the event the  premises are damaged to any extent as a result of any
cause other than the perils  covered by fire and  extended  coverage  insurance,
Landlord  shall have the  option:  (1) to  repair,  reconstruct  or restore  the
premises,  in which event this Lease shall continue in full force and effect but
the minimum rent shall be  proportionately  reduced as  hereinabove  provided in
this section during the period of such repair, reconstruction or restoration; or
(2) to give  notice to Tenant at any time  within  sixty  (60) days  after  such
damage,  terminating  this Lease as of the date specified in such notice,  which
date shall be no more than thirty (30) days after the giving of such notice.  In
the event of giving such  notice,  this Lease shall  expire and all  interest of
Tenant in the Premises  shall  terminate on the date so specified in such notice
and the  Minimum  Rent,  reduced by a  proportionate  reduction,  based upon the
extent,  if any, to which such damage interfered with the business carried on by
Tenant in the premises, shall be paid up to date of said such termination.

     (c) Anything to the contrary contained in this section 24  notwithstanding,
Landlord  shall not have any  obligation  whatsoever to repair,  reconstruct  or
restore the Premises when the damage  resulting from any casualty  covered under
this section occurs during the last twenty-four  months of the Lease term or any
extension thereof.

     (d)  Landlord  shall not be required to repair any injury or damage by fire
or  other  cause,  or to make  any  repairs  or  replacements  of any  Leasehold
improvements, fixtures, or other personal property of Tenant.

SECTION 25. EMINENT DOMAIN.

     If more than  twenty-five  percent (25%) of the Premises  shall be taken or
appropriated by any public or quasi-public  authority under the power of eminent
domain,  either party hereto shall have the right,  at its option,  within sixty
(60) days after said  taking,  to  terminate  this Lease upon  thirty (30) days'
written  notice.  If either less than or more than 25% of the premises are taken
(and neither  party elects to  terminate as herein  provided),  the minimum rent
thereafter  to be paid shall be equitably  reduced.  If any part of the Shopping
Center other than the Premises may be so taken or  appropriated,  Landlord shall
within  sixty (60) days of said taking have the right at its option to terminate
this  Lease  upon  written  notice  to  Tenant.  In the  event of any  taking or
appropriation  whatsoever,  Landlord  shall be  entitled  to any and all  awards
and/or  settlements  which may be given on account of the reduction in the value
of the  leasehold,  the taking of the fee or otherwise  and Tenant shall have no
claim against Landlord for the value of any unexpired portion of the Lease term.

SECTION 26. PARKING AND COMMON AREAS.

     (a) Landlord  covenants that upon completion of the Shopping Center an area
approximately  equal to the common areas shall be at all times available for the
nonexclusive use of Tenant during the full Lease Term or any extension  thereof,
PROVIDED that the condemnation or other taking by any public authority,  or sale
in lieu of condemnation, of any or all of such common areas shall not constitute
<PAGE>
a  violation  of this  covenant.  Landlord  reserves  the  right to  change  the
entrances,  exits, traffic lanes and the boundaries and locations of such common
areas.

     (b) Landlord shall keep said automobile parking and Common Areas in a neat,
clean and  orderly  condition  and shall  repair  any  damage to the  facilities
thereof,  but all expenses in connection with said Common Areas shall be charged
and prorated in the manner as set forth in section 6 hereof.

     (c)  Tenant,  for the use and  benefit of Tenant,  its  agents,  employees,
customers,  licensees and  sub-tenants,  shall have the  non-exclusive  right in
common with  Landlord,  and other present and future  owners,  Tenants and their
agents, employees, customers licensees and Sub-Tenants, to use said common areas
during the entire Lease Term, or any extension thereof, for ingress and egress.

     (d)  Tenant,  in the use of said Common  Areas,  agrees to comply with such
reasonable rules, regulations and charges for parking as Landlord may adopt from
time to time for the orderly and proper  operation  of said Common  Areas.  Such
rules may include but shall not be limited to the following: (1) the restricting
of  employee  parking  to a  limited,  designated  area  or  areas;  and (2) the
regulation  of the removal,  storage and  disposal of Tenant's  refuse and other
rubbish at the sole cost and expense of Tenant.

     (e) Tenant shall be granted 2 assigned and reserved parking space(s) in the
underground garage. The surface parking lot is for customer use only and not for
tenant employee use.

SECTION 27. SIGNS.

     Tenant may affix and maintain upon the glass panes and supports of the show
windows and within twelve (12) inches of any window and upon the exterior  walls
of  the  Premises  only  such  signs,  advertising  placards,  names,  insignia,
trademarks  and  descriptive  material as shall have first  received the written
approval of Landlord as to type, size, color, location,  copy nature and display
qualities. Anything to the contrary in this Lease notwithstanding,  Tenant shall
not affix any sign to the roof.  Tenant  shall,  however,  erect one sign on the
front of the  Premises not later than the date Tenant  opens for  business.  The
design of such sign shall be prepared by Tenant in  accordance  with  Landlord's
sign  criteria and shall be subject to the approval of Landlord.  Beginning  six
months prior to the end of this Lease,  Tenant will  cooperate with placement of
"For Lease" signs in the windows of the Premises by Landlord representatives.

SECTION 28. DISPLAYS.

     Tenant may not display or sell  merchandise or allow grocery carts or other
similar  devices  within the control of Tenant to be stored or to remain outside
the  defined  exterior  walls and  permanent  doorways of the  Premises.  Tenant
further  agrees not to install  any  exterior  lighting,  amplifiers  or similar
<PAGE>
devices or use in or about the  Premises  any  advertising  medium  which may be
heard or seen  outside  the  Premises,  such as flashing  lights,  searchlights,
loudspeakers, phonographs or radio broadcasts.

SECTION 29. AUCTIONS.

     Tenant shall not conduct or permit to be conducted  any sale by auction in,
upon or from the  Premises  whether  said  auction  be  voluntary,  involuntary,
pursuant  to any  assignment  for the  payment of  creditors  or pursuant to any
bankruptcy or others insolvency proceeding.

SECTION 30. GENERAL PROVISIONS.

     (a) PLATS AND  RIDERS.  Clauses,  exhibits,  schedules,  plats,  riders and
addenda, if any, affixed to this Lease are a part hereof.

     (b)  WAIVER.  The waiver by Landlord  of any term,  covenant  or  condition
herein  contained  shall not be deemed to be a waiver of such term,  covenant or
condition or any  subsequent  breach of the same or any other term,  covenant or
condition  herein  contained.  The  subsequent  acceptance of rent  hereunder by
Landlord  shall not be deemed to be a waiver of any preceding  default by Tenant
of term, covenant or condition of that Lease other than the failure of Tenant to
pay the  particular  rental so accepted,  regardless of Landlord's  knowledge of
such preceding default at the time of the acceptance of such rent.

     (c) JOINT  OBLIGATION.  If there be more than one  Tenant  the  obligations
hereunder imposed shall be joint and several.

     (d)  MARGINAL  HEADINGS.  The marginal  headings and section  titles to the
sections  of this  Lease are not a part of this  Lease and shall  have no effect
upon the construction or interpretation of any part hereof.

     (e)  TIME.  Time is of the  essence  of this  Lease and each and all of its
provisions in which performance is a factor.

     (f) SUCCESSORS AND ASSIGNS.  The covenants and conditions herein contained,
subject  to the  provisions  as to  assignment,  apply to and  bind  the  heirs,
successors, executors, administrators and assigns of the parties hereof.

     (g) RECORDATION. Neither Landlord nor Tenant shall record this Lease, but a
short form  memorandum  hereof may be  recorded  at the  request of, or with the
permission of, Landlord.

     (h) QUIET POSSESSION.  Upon Tenant's paying the rent reserved hereunder and
observing and  performing  all of the  covenants,  conditions  and provisions on
Tenant's  part to be observed and performed  hereunder,  Tenant shall have quiet
possession  of the  Premises  for the  entire  Lease  Term,  subject  to all the
provisions of this Lease.
<PAGE>
     (i) LATE CHARGES. Tenant hereby acknowledges that late payment by Tenant to
Landlord of rent or other sums due hereunder  will cause Landlord to incur costs
not  contemplated  by this Lease,  the exact  amount of which will be  extremely
difficult to ascertain.  Such costs include,  but are not limited to, processing
and accounting  charges,  and late charges which may be imposed upon Landlord by
terms of any mortgage or trust deed covering the Premises.  Accordingly,  if any
installment  of rent or any  sum  due  from  Tenant  shall  not be  received  by
Landlord's designee when said amount is due, then Tenant shall pay to Landlord a
late charge equal to the maximum amount  permitted by law (and in the absence of
any  governing  law,  ten  percent  (10%)  of such  overdue  amount),  plus  any
attorneys'  fees incurred by Landlord by reason of Tenant's  failure to pay rent
and/or other charges when due hereunder. The parties hereby agree that such late
charges represent a fair and reasonable  estimate of the cost that Landlord will
incur by reason of the late payment by Tenant.  Acceptance  of such late charges
by  Landlord  shall in no event  constitute  a waiver of Tenant's  default  with
respect to such overdue amount,  nor prevent Landlord from exercising any of the
other rights and remedies granted hereunder.

     (j) PRIOR  AGREEMENTS.  This Lease  contains all of the  agreements  of the
parties  hereto with  respect to any matter  covered or mentioned in this Lease,
and no prior agreements or understanding pertaining to any such matters shall be
effective for any purpose. No provision of this Lease may be amended or added to
except  by an  agreement  in  writing  signed  by the  parties  hereto  or their
respective successors in interest.  This Lease shall not be effective or binding
on any party until fully executed by both parties hereto.

     (k)  INABILITY  TO  PERFORM.  This  Lease  and the  obligations  of  Tenant
hereunder  shall not be  affected  or  impaired  because  Landlord  is unable to
fulfill  any of its  obligations  hereunder  or is  delayed in doing so, if such
inability or delay is caused by reason of strike,  labor troubles,  acts of god,
previous tenant  holdover,  or any other cause beyond the reasonable  control of
Landlord.

     (1) PARTIAL INVALIDITY. Any provision of this Lease which shall prove to be
invalid, void, or illegal shall in no way affect, impair or invalidate any other
provision hereof and such other provision shall remain in full force and effect.

     (m) CUMULATIVE  REMEDIES.  No remedy or election  hereunder shall be deemed
exclusive but shall, whenever possible, be cumulative with all other remedies at
law or in equity.

     (n) CHOICE OF LAW. This Lease shall be governed by the laws of the state in
which the Premises are located.

     (o)  ATTORNEYS'  FEES. In the event of any action or proceeding  brought by
either party  against the other under this Lease the  prevailing  party shall be
entitled to recover its expenses and costs,  including its  attorneys'  fees and
expert witness fees in such action or proceeding,  including costs of appeal, if
any, in such amount as the court may adjudge reasonable.

     (p) SALE OF PREMISES BY LANDLORD.  In the event of any sale of the Premises
by Landlord,  Landlord shall be and is hereby entirely freed and relieved of all
liability  under any and all of its  covenants and  obligations  contained in or
derived from this Lease arising out of any act, occurrence or omission occurring
<PAGE>
after the  consummation  of such sale;  and the  purchaser,  at such sale or any
subsequent sale of the Premises shall be deemed,  without any further  agreement
between the parties or their  successors  in interest or between the parties and
any such  purchaser,  to have assumed and agreed to carry out any and all of the
covenants and obligations of Landlord under this Lease.

     (q)  SUBORDINATION;  ATTORNMENT.  Upon request of Landlord,  Tenant will in
writing  subordinate its rights hereunder to the lien of any mortgage or deed of
trust,  to any bank,  insurance  company or other  lending  institution,  now or
hereafter in force against the  Premises,  and to all advances made or hereafter
to be made upon the security  thereof.  In the event any proceedings are brought
for foreclosure,  or in the event of the exercise of the power of sale under any
mortgage or deed of trust made by Landlord  covering the Premises,  Tenant shall
attorn to the purchaser  upon any such  foreclosure  or sale and recognize  such
purchaser as Landlord  under this Lease.  The  provisions of this section to the
contrary  notwithstanding,  and so long as Tenant is not in  default  hereunder,
this Lease shall remain in full force and effect for the full term hereof.

     (r) NOTICES. Wherever this Lease requires or permits notice or demand to be
given by either  party to the other,  such notice or demand  shall be in writing
and given or served either personally or in writing forwarded by certified mail,
return receipt requested, addressed to the parties at the addresses specified in
sections  3(c) and (k) hereof.  Either  party may change such address by written
notice to the other as herein provided.

     (s) TENANT'S STATEMENT (ESTOPPEL CERTIFICATE). Tenant shall at any time and
from time to time,  upon not less than three  days'  prior  written  notice from
Landlord,  execute,  acknowledge  and deliver to Landlord a statement in writing
(a)  certifying  that this Lease is unmodified and in full force and effect (or,
if modified,  stating the nature of such  modification  and certifying that this
Lease as so  modified  is in full force and  effect),  and the date to which the
rental and other charges are paid in advance, if any, and (b) acknowledging that
there are not,  to  Tenant's  knowledge,  any  uncured  defaults  on the part of
Landlord  hereunder,  or specifying  such  defaults if any are claimed,  and (c)
setting  forth the date of  commencement  of rents and  expiration  of the Lease
term.  Any such  statement  may be relied upon by the  prospective  purchaser or
encumbrancer  of all or any portion of the real  property of which the  Premises
are a part.

     (t)  AUTHORITY  OF  TENANT.  If Tenant is a  corporation,  each  individual
executing this Lease on behalf of Tenant  represents and warrants that he or she
has full authority to do so and that this Lease binds the corporation. If Tenant
is a partnership,  each individual executing the Lease for Tenant represents and
warrants that he, she or it is a general  partner of the  partnership,  that he,
she or it has full  authority  to sign for the  partnership  and that this Lease
binds the partnership and all general partners of the partnership.

SECTION 31. BROKERS.

     Tenant warrants that it has had no dealings with any real estate brokers or
agents in connection with the negotiations of this Lease and it knows of no real
estate broker or agent who is entitled to a commission  in connection  with this
Lease.
<PAGE>
SECTION 32. COMPLIANCE.

     The parties hereto agree to comply with all applicable  federal,  state and
local laws,  regulations,  codes,  ordinances and  administrative  orders having
jurisdiction over the parties, property or the subject matter of this agreement,
including,  but not  limited  to, the 1964 Civil  Rights Act and all  amendments
thereto,  the Foreign  Investment  in Real  Property Tax Act, the  Comprehensive
Environmental  Response  Compensation  and Liability Act, and The Americans with
Disabilities Act.

Exhibits B and D are included.

LANDLORD:                                  TENANT:

LA JOLLA APARTMENT CENTER LLC              NEW ENERGY CORPORATION

By Martin H McGee                          By Tor Ewald
   --------------------------------           ----------------------------------
   Title: Manager                             Title: Secretary/Treasurer

--------------------------------------------------------------------------------
CONSULT YOUR  ATTORNEY -- This Lease has been  prepared for  submission  to your
attorney for his or her approval.
--------------------------------------------------------------------------------
<PAGE>
                                    Exhibit A

            5685-5697 La Jolla Boulevard, La Jolla, California 92037

                                      (Map)

<PAGE>
                                    Exhibit A
                    RULES AND REGUALTIONS FOR STANDARD LEASE

Dated: February 17, 2002

By and  Between  La Jolla  Apartment  Center,  LLC  ("Landlord")  and New Energy
Corporation ("Tenant").

                                  GENERAL RULES

     1. Lessee shall not suffer or permit the  obstruction  of any Common Areas,
including driveways, walkways and stairways.

     2. Lessor reserves the right to refuse access to any persons Lessor in good
faith  judges to be a threat  to the  safety,  reputation,  or  property  of the
Retail/Office Building Project and its occupants.

     3.  Lessee  shall  not make or  permit  any  noise or odors  that  annoy or
interfere with other lessees or persons having business within the Retail/Office
Building Project.

     4. Lessee shall not keep animals or birds within the Retail/Office Building
Project, and shall not bring bicycles,  motorcycles or other vehicles into areas
not designated as authorized for same.

     5. Lessee shall not make,  suffer or permit  litter  except in  appropriate
receptacles for that purpose.

     6. Lessee  shall not alter any lock or install new or  additional  locks or
bolts without Landlord's prior written consent.

     7. Lessee  shall be  responsible  for the  inappropriate  use of any toilet
rooms, plumbing or other utilities.  No foreign substances of any kind are to be
inserted therein.

     8. Lessee shall not deface the walls,  partitions or other  surfaces of the
premises or Retail/Office Building Project.

     9. Lessee shall not suffer or permit any thing in or around the Premises or
Building  that causes  excessive  vibration  or floor  loading in any part o the
Retail/Office Building Project.

     10. Furniture, significant freight and equipment shall be moved into or out
of the building  only with the Lessor's  knowledge  and consent,  and subject to
such  reasonable  limitations,  techniques  and timing,  as may be designated by
Lessor. Lessee shall be responsible for any damage to the Retail/Office Building
Project arising from any such activity.
<PAGE>
                                    Exhibit B

     11. Lessee shall not employ any service or contractor  for services or work
to be performed in the Building, except as approved by Lessor.

     12. Lessor  reserves the right to close and lock the Building on Saturdays,
Sundays and legal  holidays,  and on other days  between the hours of _____ P.M.
and _____ A.M. of the  following  day. If Lessee uses the  Premises  during such
periods,  Lessee shall be responsible for securely locking any doors it may have
opened for entry.

     13.  Lessee  shall  return all keys at the  termination  of its tenancy and
shall be responsible for the cost of replacing any keys that are lost.

     14. No window  coverings,  shades or awnings  shall be installed or used by
Lessee without Landlord's prior written consent.

     15. No Lessee, employee or invitee shall go upon the roof of the Building.

     16. Lessee shall not suffer or permit smoking or carrying of lighted cigars
or  cigarettes  in  areas  reasonably  designated  by  Lessor  or by  applicable
governmental agencies as non-smoking areas.

     17.  Lessee shall not use any method of heating or air  conditioning  other
than as provided by Lessor.

     18. Lessee shall not install, maintain or operate any vending machines upon
the Premises without Lessor's written consent.

     19. The Premises shall not be used for lodging or manufacturing, cooking or
food preparation.

     20. Lessee shall comply with all safety,  fire  protection  and  evacuation
regulations established by Lessor or any applicable governmental agency.

     21.  Lessor  reserves  the  right  to  waive  any  one of  these  rules  or
regulations,  and/or as to any particular  Lessee, and any such waiver shall not
constitute  a  waiver  of  any  other  rule  or  regulation  or  any  subsequent
application thereof to such Lessee.

     22. Lessee assumes all risks from theft or vandalism and agrees to keep its
Premises locked as may be required.

     23.  Lessor  reserves  the right to make such  other  reasonable  rules and
regulations  as it may from  time to time  deem  necessary  for the  appropriate
operation and safety of the  Retail/Office  Building  Project and its occupants.
Lessee agrees to abide by these and such rules and regulations.

                                       B-2
<PAGE>
                                  PARKING RULES

     1. Parking  areas shall be used only for parking by vehicles no longer than
full size,  passenger  automobiles  herein  called  "PERMITTED  SIZE  VEHICLES."
Vehicles other than Permitted Size Vehicles are herein referred to as "OVERSIZED
VEHICLES."

     2.  Lessee  shall not permit or allow any  vehicles  that  belong to or are
controlled by Lessee or Lessee's employees,  suppliers,  shippers, customers, or
invitees to be loaded,  unloaded, or parked in areas other than those designated
by Lessor for such activities.

     3. Unless  otherwise  instructed,  every  person  using the parking area is
required to park and lock his own vehicle.  Lessor will not be  responsible  for
any damage to  vehicles,  injury to persons  or loss of  property,  all of which
risks are assumed by the party using the parking area.

     4. The maintenance,  washing, waxing or cleaning of vehicles in the parking
structure or Common Areas is prohibited.

     5. Lessee shall be responsible for seeing that all of its employees, agents
and invitees  comply with the  applicable  parking rules,  regulation,  laws and
agreements.

     6. Such parking use as is herein  provided is intended  merely as a license
only and no bailment is intended or shall be created hereby.

                                           Initials: ___________________________

                                                     ___________________________

                                       B-3
<PAGE>
                                 LEASE ADDENDUM

     The following terms are further  clarification  and agreement to that Lease
Agreement  dated  January  17,  2002  between  La Jolla  Apartment  Center,  LLC
("Landlord") and New Energy Corporation ("Tenant"):

     LANDLORD  IMPROVEMENTS:  Landlord  shall, at Landlord's  expense,  prior to
delivery  of  possession  of the  Premises,  anticipated  to be on,  or  before,
February 15, 2002. New building standard carpet,  replace damaged ceiling tiles.
All existing improvements to remain and to be in normal working condition at the
time of delivery of possession.

     TENANT IMPROVEMENTS:  Tenant accepts the Premises in its "as is" condition.
All  further  improvements,  if any shall be made at Tenant's  expense  with the
prior written approval of the Landlord.

     POSSESSION:  Tenant will be provided  with  possession of the Premises upon
mutual execution and delivery of the Lease and completion of Landlord's work.

     LEASE AND RENT COMMENCEMENT: February 1, 2002

     PARKING:  Tenant shall be granted 2 assigned and reserved  parking space in
the underground  parking garage.  Tenant will not be charged for the use of this
space throughout the initial term of the Lease. The surface alley parking spaces
are for customer parking, only: no Tenant parking is allowed in these spaces.

     OPTION:  Tenant  shall have the option to renew for 2  additional  one-year
term  under  the same  terms  and  conditions;  lease  rate in month one of each
option, if exercised will be subject to a cost of living increase,  with a three
(3%) percent minimum.  Options must be exercised in writing to Landlord at least
60 days prior to lease expiration.

     SECURITY DEPOSIT AND PREPAID RENT: $3,155.60 is hereby tendered as security
deposit and the first months' rent.

LANDLORD:                                   TENANT:

LA JOLLA APARTMENT CENTER, LLC              NEW ENERGY CORPORATION

By: ________________________________        By: ________________________________
<PAGE>
                                    Exhibit C

                          HAZARDOUS MATERIALS INDEMNITY

     TENANT  shall not store,  use,  manufacture,  process,  distribute,  treat,
transport,  handle,  emit,  discharge,  release  or  threaten  release  into the
environment,  or dispose of any Hazardous  materials (as such term is defined in
subparagraph  (I)  below)  on or  around  the  Premises  (or  allow  any  of the
foregoing)  without OWNER'S prior written consent.  If, after obtaining  OWNER'S
written  consent,  TENANT does store,  use,  manufacture,  process,  distribute,
treat, transport,  handle, emit, discharge, release or threaten release into the
environment or dispose of any Hazardous  Materials on or around the Premises (or
allow any of the  foregoing),  TENANT  shall do so  solely  and  exclusively  in
compliance  with all applicable  Environmental  Laws (as such term is defined in
subparagraph  (2) below) and TENANT  shall  notify OWNER in writing at least ten
(10) Jays  prior to the first  appearance  of such  materials  on or around  the
Premises and  TENANT'S  failure to do so shall  constitute  a default  under the
Lease.

     (1) The term "Hazardous Materials" as used in this Lease shall mean any and
all  hazardous,   explosive,   flammable,   radioactive,   or  toxic  materials,
pollutants,   discharges,  emissions,  contaminants  or  wastes  and  any  other
chemical,  material or substance,  whether injurious by itself or in combination
with other chemicals,  materials or substances, the handling,  storage, release,
transportation,  or disposal of which is prohibited, limited or regulated by any
federal,  state,  county,   regional  or  local  authority  including,   without
limitation,  (i) asbestos, (ii) petroleum and petroleum by-products,  (iii) urea
formaldehyde form insulation,  (iv) polychlorinated biphenyl, (v) all substances
designated as "hazardous wastes." "hazardous wastes," "hazardous  materials" or"
toxic substances"  pursuant to any Environmental Law (as such term is defined in
subparagraph  (2)  below),  including,  without  limitation,  the  Comprehensive
Environmental  Response,  Compensation and Liability Act of 1980, as amended, 42
U.S.C.  Section 9601. ET SEQ., the Hazardous  Materials  Transportation  Act, 49
U.S.C. Section 1801 ET SEQ., or the Resource,  Conservation and Recovery Act. 42
U.S.C.  Section 690 I c." "1.'".; (vi) .111 substances  designated as "hazardous
wastes" in Section 25117 of the California Health & Safety Code or as" hazardous
substances" in Section 25316 of the  California  Health & Safety Code; and (vii)
all substances designated by the Governor of the State of California to the Safe
Drinking Water and Toxic  Enforcement Act of 1986 as being known to cause cancer
or reproductive toxicity.

     (2) The term  "Environmental  Laws" as used in this  Lease  shall  mean any
federal, state, county, regional or local statutes,  codes, plans,  regulations,
or  common  laws  relating  to  pollution  or  protection  of  the  environment,
including,   without  limitation,  the  Comprehensive   Environmental  Response,
Compensation and Liability Act of 1980, as amended, 42 U.S.C.  Section 9601, ET.
SEQ.,  the Hazardous  Materials  Transportation  Act. 49 U.S.C.  Section 1801 ET
SEQ., the Resource,  Conservation  and Recovery Act, 42 U.S.C.  Section 6901 ET.
SEQ., the California Health & Safety Code and the California Safe Drinking Water
and Toxic Enforcement Act of 1986, any common laws of nuisance or trespass,  and
any  laws  or  regulations  relating  to  emissions,  discharges,  releases,  or
threatened  releases of  Hazardous  Materials  into the  environment  (including
without  limitation  ambient air, surface water,  ground water,  land surface or
substance  strata)  or  otherwise  relating  to  the  manufacture,   processing,
distribution,  use,  treatment,  storage,  disposal,  transport  or  handling of
Hazardous Materials. Environmental Laws" shall also include all orders, decrees,
judgments,  injunctions,  notices or demand letters issued, entered, or approved
under those Environmental Laws,

     (3) In the event TENANT causes or permits Hazardous Materials to be brought
onto the  I)remises  during  the term of the Lease,  TENANT  shall be solely and
exclusively responsible for promptly taking all actions and paying all costs and
expenses  necessary  for removal,  cleanup and  restoration  work and  materials
required  TO  return  the  Premises  TO their  condition  existing  prior to the
appearance  or  presence,  use or  release  of the  Hazardous  Materials  on the
Premises.  In addition,  TENANT agrees to pay all costs and expenses incurred by
OWNER in the inspection and audit of the Premises for Hazardous Materials and to
assure TENANT's performance hereunder,
<PAGE>
                                    EXHIBIT D

     (4) TENANT  hereby  agrees,  at its sole cost and  expense,  TO  indemnify,
protect,  hold harmless and defend (with counsel of OWNER's  choice),  OWNER and
its respective affiliates, shareholders, members, trustees, directors, officers,
partners,  principals,  agents,  property managers,  contractors,  attorneys and
employees (collectively. the "INDEMNITIES") from and against any and all claims,
demands,  assessments,  damages, losses,  liabilities,  obligations,  penalties,
fines,  actions,  causes  of  action,  judgments,  suits,  proceedings,   costs,
disbursements and expenses (including, without limitation, actual attorneys' and
experts' fees,  disbursements and costs) of any kind or of any nature whatsoever
(collectively,  "CLAIMS")  which may at any time be  asserted  against,  imposed
upon,  incurred or suffered by, or asserted or awarded  against,  any Indemnitee
directly or indirectly  relating to, arising from, pursuant to, or in connection
with any of the  following  which were caused or permitted by TENANT  during the
term of this Lease due to its acts or  omissions  (collectively  "ENVIROM11ENLAL
MATTERS"):

          (a) Any presence or any Hazardous Materials on, in, under or affecting
     all or any portion of the Premises or on, in under or affecting  all or any
     portion of any  property  adjacent or  proximate  to the Premises or 011 if
     such Hazardous Materials originated on or from the Premises;

          (b) Any on-site and/or off-site storage,  holding, use, manufacturing,
     processing,   sale,  handling,   release,  threatened  release,  discharge,
     generation,  leak,  abatement,  removal or  transportation of any Hazardous
     Materials on, in, under or from the Premises or any portion thereof;

          (c) The  failure  or TENANT to  comply  with any and all laws,  rules,
     regulations,  judgments, orders, permits, licenses, agreements,  covenants,
     restrictions,  requirements or the like now relating to or governing in any
     way  the  environmental  condition  of  the  Premises  or the  presence  of
     Hazardous  Materials  on, in, under or affecting  all or any portion of the
     Premises including, without limitation, the Environmental Laws;

          (d) The failure of TENANT properly to complete,  obtain, submit and/or
     file any and all notices, permits, licenses, authorizations, covenants, and
     the like relative to any of the  Environmental  Matters in connection  with
     the Premises or the  ownership,  use,  operation  or  enjoyment  thereof if
     completion,  obtainment,  submittal or filing is required by  Environmental
     Laws:

          (e) The extraction,  removal, containment,  transportation or disposal
     of any and all Hazardous  Materials from any portion of the Premises or any
     other  property  adjacent or proximate  to the  Premises if such  Hazardous
     Materials originated on or from tile Premises;

          (f) Any presence, permitting,  operation, use, closure, abandonment or
     removal from the Premises of any storage tank which at any time contains or
     contained an) Hazardous  Materials  located on, in or under the Premises or
     any portion thereof:

                                       D-2
<PAGE>
          (g) The implementation and enforcement of any monitoring, notification
     or other  precautionary  measures  which prior to the  termination  of this
     Lease became  required,  under  Environmental  Laws to protect  against the
     release or discharge or Hazardous  Materials on, in, under or affecting the
     Premises or into the air, any body of water, any other public domain or any
     property adjacent or proximate to the Premises; or

          (h) Any failure of any Hazardous Materials generated or moved from the
     Premises prior to the  termination of this Lease to be removed,  contained,
     transported and disposed of in compliance with all applicable Environmental
     Laws.

     (5) The term  "Owner"  and  "OWNER" as used in the Lease shall each mean La
Jolla Apartment Center, LLC.

TENANT's  obligations  to indemnify,  defend and hold harmless shall survive the
termination of this Lease with respect to all  Environmental  Matters that arose
during the term of this Lease.

                                       D-3Exhibit 10.2

                                      NECO

                            ENERGY PURCHASE AGREEMENT

This  ENERGY  PURCHASE  AGREEMENT  ("AGREEMENT")  is  entered  into on the  date
executed  herein below by and between NECO ENERGY  CORPORATION  (previously  New
Energy Corporation, ("NECO") and Andrew M. Martin Co., Inc. ("PURCHASER").

1.  Purchaser  wishes to avoid high energy  costs and agrees to purchase  energy
produced by the NECO solar electro-thermal  generating  equipment,  sub-systems,
recording  meters and  interconnect  facilities  (the "Solar  Generator") at 20%
below prevailing retail energy rates charged by the local public utility company
for a term of sixty (60) months (the "First Term").

2. NECO agrees that at the end of the first Term,  to extend this  Agreement for
an  additional  sixty  (60)  month  Term  (the  "Second  Term") at 30% below the
prevailing  retail energy rates charged by the local public utility  company and
which shall include the Option to Purchase  ("Option")  for Purchaser to acquire
the Solar Generator. See Exhibit A attached to this Agreement by reference which
is part hereof.

3. In the event Purchaser  elects not to purchase the Solar Generator at the end
of the Second Term, NECO shall provide  Purchaser an additional sixty (60) month
Term (the "Third Term") at 35% below the  prevailing  retail energy rate charged
by the public utility at that time.

4.  Purchaser  agrees it shall at all times  during  the First and  Second  Term
(and/or additional Terms if applicable) of this Agreement provide adequate space
at  Purchasers  Site for the Solar  Generator at no cost to NECO along with full
access by NECO to its Solar  Generator.  Purchaser  must  maintain  site control
during the term of this Agreement.  If Purchaser does not own the site where the
Solar  Generator  is to be  installed,  Purchaser  must provide NECO an executed
Landlord Waiver Agreement  between  Purchaser and Landlord (see Exhibit C) which
shall thereafter become a part of this Agreement.

5. NECO agrees to install the Solar Generator at its sole expense and obtain all
government  permits and  interconnect  agreements  with the local public utility
company

6. Purchaser agrees that all rights,  title and ownership of the Solar Generator
is the personal and identifiable property of NECO and Purchaser shall not create
any claims, liens, damages or encumbrances against the Solar Generator. NECO and
Purchaser agree to hold each other,  separately and  individually  harmless from
any and all loss,  claims,  damages and/or actions caused by either party.  NECO
shall provide liability insurance for the Solar Generator.

7. Purchaser  agrees to promptly pay all invoices  received from NECO calculated
from meter readings at Purchasers property. Payments are due NECO from Purchaser
no later than fifteen (15) days of NECO energy billing Due Date (the "Payment").
Billing statement text is outlined in Definitions.

8. In the event of Payment  Default,  Purchaser agrees NECO has the right to (a)
enter  Purchasers  Site during  normal  business  hours and (b) remove the Solar
Generator and subsystems  listed, but not limited to those outlined in Exhibit B
and (c) institute collection proceedings.  Solar Generator and sub-systems shall
be subject to paragraphs within Exhibit C, Landlord Waiver.

9. Any dispute,  controversy or claim arising under,  out of or relating to this
Agreement and subsequent  amendments thereof and hereinafter referred to as "the
Dispute"  shall be  submitted  to  Mediation  in  accordance  with the  Rules of
Mediation of the American Arbitration Association. See Definitions.

10. Purchaser and NECO agree that this Agreement may be assigned by either party
and that this Agreement shall have binding effect.

11. Rates paid by Purchaser to NECO for delivered electricity are based upon the
number of  kilowatts  used by  Purchaser  at rates  charged by the local  public
utility company,  including demand charges,  time of day use (where  applicable)
and other  factors,  less 20% during the First Term,  30% during the Second Term
and 35% (if applicable) during the Third Term.

12. Rates paid by Purchaser to NECO for delivered  thermal energy are based upon
the number of therms or BTU's used by  Purchaser  at rates  charged by the local
public  utility  company,  including  surcharges  if any, and  including  boiler
inefficiency  (where  applicable)  and other factors,  less 20% during the First
Term, 30% during the Second Term and 35% (if applicable)  during the Third Term.
See Definitions.

13.  NECO  reserves  the right to sell any  available  energy  not  consumed  by
Purchaser to Third Parties. See Definitions.

14.  Termination:  This Agreement and commencement of the first sixty (60) month
First  Term  shall  become  effective  as of the date set forth  above and shall
continue in full force and effect until the final day sixty (60) months into the
Second  Term,  March 6,  2012 or  until  the  final  day of the  Third  Term (if
applicable), at which time this Agreement shall terminate.

Energy Purchase Agreement - Andrew Martin                            Page 1 of 4
<PAGE>
                                   DEFINITIONS

BOILER  INEFFICIENCY:  Boiler inefficiency loss equals  approximately 25% due to
the heat loss going up the exhaust stack.

DISPUTES: Any Dispute, controversy or claim arising under, out of or relating to
this Agreement (and subsequent amendments thereof) its valid conclusion, binding
effect,  interpretation,  performance,  breach or  termination,  including  tort
claims  (hereinafter  referred  to as  "the  Dispute")  shall  be  submitted  to
Mediation in accordance with the Rules of the American  Arbitration  Association
in force at the time of initiating the mediation  procedure.  If the Dispute has
not been  settled  pursuant  to the  Mediation  procedure  within 60 days of the
initiation  of the  Mediation,  or if either party will not  participate  in the
Mediation,   the  Dispute  shall  be  referred  to  and  finally  determined  by
arbitration in accordance  with the Rules of  Arbitration  of the  International
Chamber of  Commerce  in force  when  initiating  the  arbitral  procedure.  The
arbitral  tribunal shall consist of a sole arbitrator.  The place of arbitration
shall be San Diego,  USA. The  language to be used in the  arbitral  proceedings
shall be English. All disputes,  controversies or claims referred to arbitration
including those on any statute of limitations,  set-off claims,  tort claims and
interest claims shall be governed by the substantive law of California, U.S.A.

INVOICES:  Invoices  are  billing  statements  provided  Purchaser  by NECO on a
regular  basis  commencing  the first day of each  month and shall  contain  (1)
amount of kiloWatt hours  delivered,  (2) amount of delivered  B.T.U.'s / therms
(where applicable), (3) price per kWh and therm and (4) total amount due).

NECO ENERGY  CORPORATION:  A public company,  trading on NASDAQ Over The Counter
Bulletin  Board  ("OTCBB").  NECO  has  a  Technology  and  Strategic  Marketing
Agreement  with  MegaWatt  Energy  Corporation  ("MEC").  MEC is a  manufacturer
patented solar electro-thermal generators for NECO.

PAYMENT DEFAULT: Purchase shall be in default if payment is not received by NECO
fifteen (15) days after the Billing Date.  Billing shall be sent to Purchaser in
advance of the billing date.

PURCHASERS SITE: The site or location where the Solar Generator is installed.

RECORDING METERS:  Are placed at a convenient  location.  There are two types of
recording  meters:  (1) a  kilowatt  hour  meter(s)  and  (2) a  thermal  B.T.U.
recording meter(s).

SOLAR  GENERATOR:   The  identified  components  of  the  solar  electro-thermal
generator,  sub-systems,  recording meters and interconnect facilities installed
at and upon  Purchasers  Site are the subject of this Agreement and Exhibits and
are listed in Exhibit B attached to this Agreement  hereto by reference and is a
part hereof.

THIRD  PARTIES:  In the event the purchaser does not require energy at a certain
time of day or does not require thermal energy,  NECO reserves the right to sell
any excess energy to the local utility or other parties.

UNITS OF MEASUREMENT: 1 Kilowatt: 1000 watts; 1 Therm: 100,000 B.T.U.

EXHIBITS A, B AND C ATTACHED HERETO AND ARE PART OF THIS AGREEMENT.

IN WITNESS  WHEREOF,  PURCHASER and NECO have executed this Agreement as of this
5th day of March, 2002 in the City of Gardena,  County of Los Angeles,  State of
California.

PURCHASER                                     NECO:

By: ______________________________            By: ______________________________
    Cliff Miller, President                       John McDonald
    16539 South Main St.                          5580 La Jolla Blvd., Suite 506
    Gardena, CA 90248                             La Jolla, CA 92037-7651
    (310) 323-2000                                (619) 615-8647
                                                  Office: 5685 La Jolla Blvd

Energy Purchase Agreement - Andrew Martin                            Page 2 of 4
<PAGE>
                                      NECO
                       OPTION TO PURCHASE SOLAR GENERATOR
                                    EXHIBIT A

This  Exhibit  A is  attached  hereto  by  reference  and is part of the  Energy
Purchase Agreement ("Agreement") entered into by and between NECO and Purchaser.

1. NECO agrees to transfer  all  rights,  title and  interest of and in the NECO
Solar Generator and its sub-systems to Purchaser free and clear of all liens and
encumbrances subject to the terms of the Agreement and Exhibit.

2. Purchaser has the right to purchase the Solar  Generator after the end of the
Second  Term:  March 6,  2012 or  Third  Term:  March 6,  2017 or at any time as
requested  by Purchaser  as defined in the  Agreement.  Purchaser is required to
inform NECO of its  election to exercise  this Option to Purchase  provision  no
less than sixty (60) days prior to the end of the Second  Term or Third Term (if
applicable).

3. NECO hereby offers this Option to Purchase the Solar  Generator  installed at
Purchasers  Site.  The  purchase  price  shall be equal to the amount of (a) the
value of  electricity  and thermal  energy (if applicable and used by Purchaser)
produced by the Solar  Generator and paid by Purchaser to NECO over the previous
Second Term, and (b) (where applicable) the value of electric and thermal energy
produced and delivered by the Solar  Generator and paid for by Purchaser to NECO
over the previous Third Term. Purchaser shall retain this Option to Purchase for
the period of fifteen  (15)  years  from the date of this  Agreement  as long as
Purchaser conforms to the terms of this Agreement and Exhibits.

4. In the event  Purchaser  elects to extend  the number of Terms four (4) times
ending  at twenty  (20)  years  from the date of this  Agreement  and  Exhibits,
thereafter this Option and Agreement shall automatically  become void and may be
renegotiated by NECO and purchaser.

5. Purchaser  hereby  authorizes  NECO to install a Rankine Cycle  Turbine,  its
sub-systems and associated thermal storage to produce  electricity on demand for
subsequent use by Purchaser or sale to Third Parties by NECO.  The  installation
shall be at the sole cost of NECO and be subject to this  Agreement and Exhibits
A, B and C.

AGREED BY:

PURCHASER                               NECO

By: _____________(initials)             By:____________(initials)
    Cliff Miller, President                John McDonald

Energy Purchase Agreement - Andrew Martin                            Page 3 of 4
<PAGE>
                                      NECO
                         SOLAR GENERATOR EQUIPMENT LIST
                                    EXHIBIT B

Rated Output:                 The NECO Solar  Generator  installed  by NECO upon
                              Purchasers  Site shall have a total  rated  energy
                              output  capacity after the  inverter(s) of no less
                              than 300 kiloWatts  per hour,  and able to produce
                              and deliver 30 therms per hour over a daily annual
                              average  of  six  and  one  half  (6.5)  hours  of
                              sunlight.

Number of Generators:         One (1) rated at 300 kW output or more.

Size:                         235 feet in diameter

Location:                     Above  Purchasers  buildings  and open areas where
                              permitted by law.

Model Number:                 300 kW NECO

Warrantee:                    Unconditional  100%  parts  and labor  during  the
                              initial  two 5 year Terms after  installation  and
                              grid connection.  In essence, NECO delivers hassle
                              free energy to Purchaser

Extended Warrantee:           Unconditional   100%   parts   and   labor,   over
                              additional 20 years subject to Extended  Warrantee
                              Contract   which  may  be  executed  by  NECO  and
                              Purchaser  at any  time  prior  to the  end of the
                              initial  5 year  unconditional  warrantee  period.

NOTES:

1. Purchaser agrees to allow NECO, at its own discretion,  to install additional
Solar  Generator(s)  and  sub-systems to fulfill  Purchasers  additional  energy
requirements, if any.

2. The NECO Solar  Generator shall be  manufactured,  installed and connected to
the grid as swiftly as possible.

SUB-SYSTEMS TO INCLUDE:

3. One or more electric and one or more thermal meters for each Solar Generator.

4. Each Rankine Cycle Turbine to convert  unused and stored  thermal energy into
electricity  includes one (1) heat exchanger,  one (1) condenser and one or more
Rankine  Cycle  Turbine  generators.  The Rankine and related  equipment  may be
installed  at a  later  date  at the  sole  discretion  and  cost of NECO or its
assigns.

5. Each Solar  Generator  requires  one or more  inverters  installed to convert
direct  current (DC) into  alternating  current (AC) for use by end user and the
local utility grid system.

6. Grid connecting  equipment shall be installed as required by the local public
utility and construction permitting agencies.

7.  Telemetry:  NECO and MEC may install certain  telemetry  equipment to gather
real time information which may include  delivered  electric and thermal output,
operating  conditions  including wind speed, rain or faulty equipment operation,
etc.  Purchaser  shall  supply at no cost to  Purchaser  access to  electric  or
communication connection(s) if required by NECO or MEC.

8.  Purchaser  understands  and NECO agrees to increase Solar  Generator  output
capacity if Purchasers  energy  requirements  exceed the Solar Generator output.
NECO shall at its sole option  elect to expand the Solar  Generator  output when
and if applicable at no cost to Purchaser. If such output increase should occur,
Purchaser  agrees  to (1)  amend  Purchasers  Option to  Purchase  Agreement  as
presented by NECO, (2) provide additional space for Solar Generator Installation
as and where  applicable  and (3) to execute forms  required by NECO,  the local
utility and permitting agencies.

AGREED BY:

PURCHASER                               NECO

By: ________________                    By: ________________
    Initials                                Initials

Energy Purchase Agreement - Andrew Martin                            Page 4 of 4

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