Document:

<PAGE>

                                                                   EXHIBIT 10.57

                                           NOTICE: THIS IS A NONCANCELABLE,
                                           BINDING CONTRACT CONSISTING OF ALL
                                           TERMS ON BOTH SIDES. IT CONTAINS
                                           IMPORTANT TERMS AND CONDITIONS AND
                                           HAS LEGAL AND FINANCIAL CONSEQUENCES
                                           TO YOU. PLEASE READ IT CAREFULLY;
                                           FEEL FREE TO ASK QUESTIONS BEFORE
                                           SIGNING.

Lessor:
COMMERCIAL MONEY CENTER
221 W. Crest Street, Ste 200
Escondido, CA 92025
(760) 489-0383 Fax
(760) 489-6969 Phone

EQUIPMENT LEASE AGREEMENT 9906184
DESCRIPTION OF EQUIPMENT (Include all attachments)        SERIAL NUMBER

See Attached Exhibit "A" Hereto And Made A Part Hereof    See Attached Exhibit
"A" Hereto And Made A Part Hereof

VENDOR'S NAME:  Sale Lease Back
<TABLE>
<CAPTION>

SCHEDULE OF RENTAL PAYMENTS
TERM OF LEASE (IN MONTHS)      TOTAL # OF RENTAL PYMTS    AMOUNT OF EACH PYMT    ADVANCE RENTAL
<S>                            <C>                       <C>                     <C>
63                             63                         753.82                 1,507.64
PAYMENT FREQ. Monthly                                    (plus applicable tax)   (last payments)
</TABLE>

LEASING CUSTOMER (Lessee): (Complete Legal Name.  If a corporation, use EXACT
registered corporate name.)
Company Name     Applied Data Communications Inc. and Walter J. Kane as
                 Co-Lessees
Billing Address  3324 South Susan St.
                 Santa Ana, CA 92704-6841
County           Orange
Equip Location   Same

YOU (THE LEASING CUSTOMER) ARE REQUESTING THE LEASING COMPANY ("WE", "US" OR
"OUR") TO PURCHASE THE ABOVE EQUIPMENT FOR YOUR USE.  TO INDUCE US TO MAKE THIS
PURCHASE, YOU HAVE AGREED TO THE FOLLOWING IMPORTANT TERMS AND CONDITIONS.

1. LEASE.  You agree to lease from us and we agree to lease to you the equipment
identified above together with any replacement parts, additions or repairs (the
"Equipment") under the terms stated in this Equipment Lease Agreement (the
"Lease").  You authorize us to correct obvious errors in this Lease and to
insert the Lease number, the serial numbers and other data identifying the
Equipment and other missing terms above (if any) following your execution of
this Lease.    LEASE AGREEMENT CONTINUES ON REVERSE SIDE

By Signing this Lease, you acknowledge and agree that: (i) you have had an
opportunity to discuss the terms and conditions in this Lease with us before
signing this document; (ii) you have read and understand the terms and
conditions on the front and back of this Lease; (iii) this Lease is a Net Lease
that cannot be terminated or canceled; (iv) you have an unconditional obligation
to make all payments due under this lease and you cannot withhold, set-off or
reduce such payments for any reason; (v) the person signing below is a corporate
officer, partner, member or proprietor of yours and is authorized to sign this
lease and bind you; (vi) this Lease contains the entire agreement between the
parties and no other oral or written agreements are in effect; and (vii) this
lease may not be amended except by a written agreement signed by both parties,
their successors and assigns.

SIGNATURE                                              TELEPHONE NO. (AREA CODE)
X /s/ Walter J. Kane
Applied Data Communications Inc. and Walter J. Kane    714-668-5200
as Co-Lessees

PERSONAL GUARANTY
To induce the above leasing company ("Leasing Company") to make this Lease and
purchase the equipment for the above leasing customer ("Customer"), knowing that
the Leasing Company is relying on this guaranty as a precondition to making this
Lease, I (or if more than one, then all of us, jointly and severally)
INDIVIDUALLY, PERSONALLY, ABSOLUTELY AND UNCONDITIONALLY GUARANTY to the Leasing
Company (and any person or firm the Leasing Company may transfer its interest
to) all payments and other obligations owed by the Customer to the Leasing
Company under the Lease and any add-on leases and future leases between Leasing
Company and Customer, including but not limited to the Leasing Company's
attorney's fees and legal costs incurred in enforcing the Lease.  I will also
pay all reasonable costs and fees incurred by the Leasing Company in enforcing
this Guaranty.  Accounts settled between the Leasing Company and the Customer
will bind me.  I waive notice of acceptance hereof and all other notices or
demands of any kind to which I may be entitled and consent to the granting of
extensions of time of payments to Lessee and other obligors and guarantors and
to any other amendments or adjustments in the terms of the lease.  I waive
notice of demand and notice of default, and I agree that the Leasing Company may
proceed directly against me without first proceeding against the Customer or the
security (including the equipment).  This guaranty shall be governed by the
state where the Lessor is located..  I FREELY CONSENT TO PERSONAL JURISDICTION
OF THE APPLICABLE JURISDICTION AND I WAIVE TRIAL BY JURY.  This Guaranty will
bind my heirs, representatives and successors.

<TABLE>
<CAPTION>

SIGNATURE (INDIVIDUALLY, NO TITLES)  Date     SIGNATURE (INDIVIDUALLY, NO TITLES)  Date
<S>                                  <C>      <C>                                  <C>
X /s/ Walter J. Kane                 6/22/99  X
Walter Kane
</TABLE>

WITNESS SIGNATURE:  /s/ Michael W. Grace

DATE:
<PAGE>

Lease Agreement - continued
2. TERM.  You agree this lease will not start until we sign it.  Once it starts,
you agree it will continue for the full term shown on the reverse side and any
extension term ("Term").

3. RENT.  You agree to pay us monthly rent for the full Term in the amount shown
on the reverse side.  That amount is based on the estimated cost of all
Equipment and you agree it may be adjusted upward or downward if the actual cost
exceeds or is less than this estimate.  The monthly due date and the due date
for the first payment will be set by us but will not be more than 30 days from
the day you accept delivery of the Equipment.  We may charge you a partial
payment for the time between the delivery date and the date the first regular
payment is due.  If all or any part of a payment is late, we may charge you a
late fee of $10.00 or 12% of the amount that is late, whichever is more.  Time
is of the essence with respect to all payments due and all of your other
obligations under the Lease.  You have no right of prepayment.

4. ADVANCE RENT.  To secure your obligations to us, you will pay the advance
rent amount shown on the reverse side at the time you sign this Lease.  If the
Lease is never finalized for reasons that are not our fault, we may keep the
deposit to pay for our administrative costs.  If any part of the deposit is
remaining at the end of the Term and you have complied with all of your
obligations, we will return the remainder to you without interest.  These
payments represent the last payments due on the lease.

5. DELIVERY.  You agree that we are not responsible for delivery or installation
of the Equipment.  You will not have any claim against us if the manufacturer or
supplier (collectively called "Vendor" in this Lease) delays in delivery or
installation, or if the Equipment is unsatisfactory for any reason.

6. SELECTION AND PURCHASE OF EQUIPMENT.  You understand and agree that: (A) WE
DID NOT SELECT, MANUFACTURE, SUPPLY OR INSPECT THE EQUIPMENT AND HAVE NO
EXPERTISE REGARDING THE EQUIPMENT; (B) YOU SELECTED THE VENDOR AND THE EQUIPMENT
BASED ON YOUR OWN JUDGMENT; (C) WE ARE BUYING THE EQUIPMENT AT YOUR REQUEST ONLY
FOR THE PURPOSE OF LEASING IT TO YOU; (D) YOU AGREE THAT THIS LEASE QUALIFIES AS
A "FINANCE LEASE" AS THAT TERM IS DEFINED IN ARTICLE 2A-103 OF THE UNIFORM
COMMERCIAL CODE ("UCC"); (E) Before signing this Lease, you approved the supply
contract (if any) between us and the Vendor.; and (F) You have been advised in
writing (or are now advised in this Lease) that you may have rights against the
Vendor under the supply contract (if any) and that you may contact the Vendor to
find out what these rights against the Vendor are (if any).

7. IMPORTANT CONDITIONS.  You understand and agree that:
(A) THE LEASE CANNOT BE CANCELED BY YOU AT ANY TIME FOR ANY REASON.;

B) YOUR DUTY TO MAKE THE PAYMENTS IS UNCONDITIONAL DESPITE EQUIPMENT FAILURE,
DAMAGE, LOSS OR ANY OTHER PROBLEM; (C) WE ARE LEASING THE EQUIPMENT TO YOU "AS
IS" AND WE HAVE MADE NO REPRESENTATION, GUARANTEE OR WARRANTY, EXPRESS OR
IMPLIED (INCLUDING ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE) REGARDING THE EQUIPMENT.  WE DISCLAIM ALL SUCH WARRANTIES OR
GUARANTEES OF ANY KIND.  We agree to transfer to you all warranties IF ANY made
by the Vendor to us;

(D) WE WILL NOT BE LIABLE FOR ANY LOSS OR INJURY TO YOU OR ANY OTHER PERSON OR
PROPERTY (including lost profits and consequential, incidental or special
damages) CAUSED BY THE EQUIPMENT OR ITS FAILURE TO OPERATE; (E) To the extent
permitted by applicable law, YOU WAIVE ANY RIGHTS WHICH WOULD ALLOW YOU TO: (1)
cancel or repudiate the Lease; (2) reject or revoke acceptance of the Equipment;
(3) grant a security interest in the Equipment; (4) accept partial delivery of
the Equipment; (5) "cover" by making any purchase or lease of substitute
equipment; and (6) seek specific performance against Leasing Company.

(F) YOU UNDERSTAND THAT WE AND THE VENDOR ARE TWO SEPARATE AND INDEPENDENT
COMPANIES AND THAT NEITHER THE VENDOR NOR ANY OTHER PERSON IS OUR AGENT.  YOU
AGREE THAT NO REPRESENTATION, GUARANTEE OR WARRANTY BY THE VENDOR OR OTHER
PERSON IS BINDING ON US, AND NO BREACH BY THE VENDOR OR OTHER PERSON WILL EXCUSE
YOUR OBLIGATIONS TO US.  YOU ALSO UNDERSTAND THAT ONLY AN OFFICER IS AUTHORIZED
TO WAIVE OR ALTER ANY OF THE TERMS OF THIS LEASE.

(G) IF THE EQUIPMENT DOES NOT WORK AS REPRESENTED BY THE VENDOR, OR IF THE
VENDOR OR ANY OTHER PERSON FAILS TO PROVIDE ANY SERVICE, OR IF THE EQUIPMENT IS
UNSATISFACTORY FOR ANY OTHER REASON, YOU WILL MAKE ANY SUCH CLAIM SOLELY AGAINST
THE VENDOR OR OTHER PERSON AND WILL MAKE NO CLAIM AGAINST US.

8. REPAIRS AND SERVICE.  You understand that we are not responsible for repairs
or service to the Equipment.  You will keep the Equipment in good condition and
will service the Equipment as and when needed.  All replacement parts and
additions will become our property.

9. USE.  YOU CERTIFY THAT THE EQUIPMENT WILL BE USED SOLELY FOR BUSINESS,
COMMERCIAL OR AGRICULTURAL PURPOSES AND NOT FOR PERSONAL, FAMILY OR HOUSEHOLD
PURPOSES.  You will not (a) make any alterations to the Equipment; (b) will not
allow it to be used by anyone but your employees; or (c) move it to any other
location without our written permission.  You will not attach the Equipment to
any real estate.

10. RISK OF LOSS; DAMAGE; INSURANCE.  You are responsible for any loss,
destruction or damage to the Equipment from any cause at all, whether or not
insured, from the time the Equipment is shipped to you until it is returned to
us.  NO SUCH LOSS OR DAMAGE SHALL IMPAIR YOUR OBLIGATIONS UNDER THIS LEASE,
WHICH SHALL CONTINUE IN FULL FORCE AND EFFECT.  You will keep the equipment
insured against all risks of loss in an amount not less than the replacement
cost, and will list us as the loss payee.  If required, you will also carry
public liability insurance listing us as additional insured in amounts
acceptable to us.  You agree to provide us with satisfactory written evidence of
all such insurance.  YOU AGREE THAT IF YOU FAIL TO OBTAIN SUCH INSURANCE, WE MAY
(BUT ARE NOT OBLIGATED TO) OBTAIN IT AND CHARGE YOU A FEE IN WHICH CASE, WE WILL
BE THE SOLE INSURED PARTY AND YOU WILL HAVE NO RIGHTS UNDER THE INSURANCE
POLICY.  In addition, because of the increased risk of loss to us when the
equipment is not insured, you agree to pay us each month a risk charge
stipulated at 0.25% of our original cost of the Equipment until you provide
adequate proof of insurance; however, you agree that while you have no right to
any insurance benefits from us, you are still liable for all losses, and such
risk charge is not a substitute for the insurance requirements under this Lease.

YOU HEREBY GIVE US POWER OF ATTORNEY TO APPLY FOR INSURANCE BENEFITS AND TO
ENDORSE CHECKS RECEIVED IN PAYMENT.

INITIALS /s/ WJK

11. TAXES AND OTHER FEES.  You agree that this is a "net" lease and agree to pay
us upon demand for all taxes (including sales, use, personal property and other
taxes) and other fees of any kind which may be charged regarding the leasing,
use or ownership of the Equipment.  With regard to yearly taxes and fees, such
as personal property tax. we may charge you once a year or estimate the amount
of the yearly charge and bill you monthly for a portion.

12. INDEMNITY.  You agree to defend us against and indemnify (reimburse) us for
all claims, liabilities, costs and legal fees arising out of the leasing, use or
possession of the Equipment, including claims for property damage or injury to
persons.  This promise will continue after the end of the Lease Term.

13. TITLE.  You understand that we retain sole ownership and title to the
Equipment.  You get use of the Equipment and we receive the tax benefits.  This
lease is a finance lease as defined under Article 2A, Section 2A-103 (1) (g) of
the Uniform Commercial Code.  The lease conforms with the Internal Revenue
Service requirements of a true lease: a) the lease has a residual use period for
the lessor, and b) the lease has the option to become the owner of the goods for
the "fair market value" of the asset.  YOU HEREBY GIVE US POWER OF ATTORNEY TO
SIGN AND FILE FINANCING STATEMENTS, AND YOU AGREE TO PAY OUR FILING FEES.  Etc.

14. DEFAULT.  You agree that we may declare you in default if you (a) fail to
make any payment for a period of 20 days after the due date; (b) do not comply
with any other term of this Lease or any other agreement you have with Leasing
Company; (c) any action is brought against you causing the Equipment to be taken
or encumbered; (d) you die, become insolvent, make or consent to an assignment
for the benefit of creditors, file or have filed against you a bankruptcy, sell
all or substantially all your assets, make or consent to the appointment of a
receiver or trustee, or go out of business.  Lessee agrees that in the event of
multiple leases that default by the lessee shall at the option of the lessor
constitutes a default of all other leases.  If any of these defaults occurs, you
agree that we make take one or both of the following actions, in addition to
other actions available under law.

(A) terminate the Lease and/or sue for: (1) past due rent and all future rent to
become during the unexpired Term; (2) the residual value placed on the Equipment
by us at the commencement of the Lease; (3) all late fees and any other charges
due and to become due; and (4) the costs listed in Section 15 below; AND

(B) enter the Equipment site and repossess the Equipment or sue for a
repossession court order.  Following repossession: (1) All of your rights to the
equipment will end; (2) we may remarket the Equipment without advance notice to
you; and (3) we may also sue for the amounts listed in Section 14(A) above
without first remarketing the Equipment.  You agree that we are not required to
repossess and remarket the equipment, and you waive any rights under any law
that provides otherwise.

15. RECOVERY COSTS.  You agree to pay all of our recovery costs after a default,
including: (1) attorney's fees equal to 25% of the amount of our claim or $1500,
whichever is greater; (2) reasonable attorney's fees for getting a repossession
order; (3) costs of suit; (4) $250 to cover our internal collection overhead;
(5) $225 to cover our internal repossession and remarketing overhead if an
internal repossession is made or attempted; and (6) all other reasonable out-of-
pocket costs.  You agree now that the above amounts are good and reasonable
predictions of what our actual costs and overhead will be and are not penalties.

16. RETURN OF EQUIPMENT.  At the end of the Lease term, or if you are in default
and we make a written request, you will, at your expense, return the Equipment
to us at a reasonable place to be designated by us.  You agree to have the risk
of loss during transit.  If you fail to return the Equipment within 10 days
after the end of the Term, you agree that we will have the option of extending
the Lease on an additional month-to-month basis under the same terms stated in
this document.  You agree to pay us for any damage done to the Equipment during
the Term beyond "ordinary wear and tear".  You understand that any person who
refuses to return or prevents us from repossessing the Equipment may be
personally liable for conversion.

17. ASSIGNMENT; SUBLEASE.  BECAUSE THIS LEASE WAS GRANTED TO YOU ON THE STRENGTH
OF YOUR OWN CREDIT, YOU AGREE THAT YOU MAY NOT SELL OR ASSIGN (TRANSFER) ANY OF
YOUR INTEREST UNDER THE LEASE TO ANY OTHER PERSON OR SUB-LEASE ANY OF THE
EQUIPMENT.  You agree that we may assign (transfer) any or all of its interest
under this Lease and/or the Equipment to a new owner or a secured party at any
time without prior notice to you, and such new owner or secured party will have
the same rights we had under this Lease but will not have to perform any of our
obligations (in which case we will keep those obligations).  You also agree that
the rights of the new owner or secured party will not be subject to any claims,
defenses or set-offs that you may have against us or any other person.  You
agree that any transfer by us would not materially charge your obligations under
the lease or substantially increase your risks.

18. GOVERNING LAW.  As used in this paragraph 18, "Applicable Jurisdiction"
means the state, as the same may change from time to time, where the holder of
the Lessor's interest in this Lease maintains its principal office responsible
for administering this Lease.  This Lease and any guaranty hereof shall be
interpreted and construed in accordance with, and governed by, the laws of the
Applicable Jurisdiction applicable to lease and guaranty agreements
respectively, made and to be fully performed in the Applicable Jurisdiction.

19. LESSEE'S REPRESENTATIONS.  You represent to us that (1) you have complete
power and are properly authorized to enter into this Lease; (2) the Lease is
legal, valid, binding on you, and enforceable against you in accordance with its
terms; (3) all information supplied by you or your agents (for example, the
Vendor) to us, including all financial information, is true, correct and
complete.  YOU HEREBY AUTHORIZE LEASING COMPANY TO SHARE AND EXCHANGE WITH ANY
OF ITS AFFILIATES CREDIT AND OTHER INFORMATION IT HAS OBTAINED ON YOU AND YOUR
BUSINESS.

20. FAXED AND COPIED DOCUMENTS.  The parties intend and agree that a carbon
copy, photocopy or facsimile of this document with their signature thereon shall
be treated as an original and shall be deemed to be as binding, valid, genuine
and authentic as an original-signature document for all purposes, including all
matters of evidence and the "best evidence" rules.

21. Lessee understands and agrees that Lessor at their option may obtain a
surety bond from an insurance company that guarantees Lessees obligation in this
lease.  Al costs for the bond(s) shall be paid by the Lessor to execute such
instruments in the place and stand of Lessee as may be necessary to obtain such
surety bond.  Lessee hereby authorizes lessor to execute such instruments in the
place and stead of lessee as may be necessary to obtain such surety bond.
Lessee specifically authorizes lessor to execute and deliver a nonrevocable
indemnity agreement to the surety obligating the lessee to the surety for monies
due in this lease.

22. I HAVE READ AND UNDERSTAND THE ABOVE PARAGRAPH.

INITIAL /s/ WJK

ACCEPTED BY LESSOR:

By:                  Title:                   Date:                  9906184
<PAGE>

                                  SCHEDULE "A"

Quantity    Description                                Serial Number
       1    Air Compresson
            -Model #19999
       1    Best Pack Case Sealer
            -Model #299UCS01
       1    Conveyor 10"L X 12"W
            -Product #160UC1012
       1    Owners Manual ST 1608 Rod
            -Product #199MNL
       1    ST 1608 Rob Conveyor
            -Product #124F9
       1    Staging Conflex
            -Product #22590002S
       1    Print Raegistration Conflex
            -Product #225900010
       1    Rixed conveyor Speed Chang Conflex
            -Product #22590004
       1    Conflex E-250-A W/ Center Sealing             2563079
            -Height 8
            -Product #225E250A

This Exhibit "A" is attached to and a part of Commercial Money Center, Inc.,
lease number 9906184 and constitute a true accurate description of the
equipment.

     LESSEE:     Applied Data Communications and Walter J. Kane
     Signature:  /s/ Walter J. Kane
     Date:  6-11-99
<PAGE>

                                         ADDENDUM A                  Pg. 1 of 2

This Addendum is made part of that certain Lease Agreement No. 9906184 dated
_____________ between Applied Data Communications Inc. and Walter J. Kane as Co-
Lessee ("Lessee") and Commercial Money Center as Lessor (the "Lease Agreement").

     To secure the prompt payment, performance and observance in full of all of
Lessee's obligations under and pursuant to the Lease Agreement and the schedules
thereto.  Lessee hereby pledges, transfers, sets over and assigns to Lessor, its
successors and assigns, and grants to Lessor a first priority and continuing
general security interest in, and a lien upon and a right of setoff against (a)
all of Lessee's accounts, accounts receivables, contract rights, instruments,
documents, notes, chattel paper, other forms of obligations, and general
intangibles, arising from the use, from time to time, by Lessee or by third
parties under an employment or service contract with Lessee, of any item of
equipment which is the subject matter of the Lease Agreement or otherwise
arising in connection with any item of equipment, whether secured or unsecured,
whether now existing or hereafter created or arising, and whether or not
specifically assigned to Lessor or not (hereinafter the "Receivables"), (b) all
guaranties, mortgages on real or personal property, agreements or other property
relating to any of the Receivable or acquired for the purpose of securing and
enforcing any of such Receivables, (c) all books, records, ledger cards,
computer tapes, disks and software relating thereto, and other property and
general intangibles at any time evidencing or relating to Receivables
("Records") and (d) all proceeds of any of the foregoing in whatever form,
including, without limitation, any claims against third parties related to the
foregoing (hereafter all of the foregoing referred to collectively as
"Collateral").  Records reflecting the Receivables shall, until delivered to or
removed by Lessor, be kept by Lessee in trust for Lessor, and without cost to
Lessor, in appropriate containers in safe places.  Each confirmatory assignment,
schedule or other form of assignment at any time executed by Lessee shall be
deemed to include the foregoing whether or not the same appears therein.

     Lessee will, at such intervals as Lessor may from time to time require,
provide Lessor with confirmatory assignment schedules of outstanding
Receivables, copies of all document evidencing any Receivable, and such further
lists and/or information as Lessor may reasonably require including monthly
accounts receivable aging reports.  The items to be provided under this
paragraph are to be in form satisfactory to lessor and are executed and
delivered to Lessor for its convenience in maintaining records of the
Collateral.  Lessee's failure to give any such items to Lessor or otherwise
comply with the provisions hereof shall not affect, terminate, modify or
otherwise limit Lessor's lien or security interest in the Collateral.

     In connection with the foregoing, Lessee hereby irrevocably constitutes and
appoints Lessor and any agent and designee (collectively and individually
"Agent") as its true and lawful agent and attorney in fact, coupled with an
interest with the power to do any or all of the following: 1. At Agent's sole
discretion, Agent may require Lessee to direct all accounts receivable,
including all of Lessee's accounts, contract rights, instruments, documents,
notes chattel paper, other forms of obligations and general intangibles of
Lessee to a Lock Box Account to be established at Lessee's primary bank.  Such
account will inure to the benefit of Lessor and Lessee.  Any proceeds of this
Lock Box Account, of which Lessor is not then entitled to, under the terms of
the Lease Agreement, shall then be available to Lessee; 2. To endorse any and
all checks, drafts or items payable to bearer or to the order of Lessee, and to
receive, retain and use the proceeds thereof;
<PAGE>

                                                  ADDENDUM A         Pg. 2 of 2

3. To enter into, execute, or deliver all instructions, agreements, contracts,
documents, receipts and other instruments necessary or convenient in the
exercise of the foregoing power; 4. To delegate any or all of the powers
contained herein to one or more sub-attorneys and to revoke all or part of this
delegation while as Lessee could have taken but for this Agreement.  All acts of
Agent are hereby ratified and approved and Agent shall not be liable for any
acts of omission or commission, nor for any error of judgement or mistake of law
or fact.  The powers of Agent granted herein shall commence in full as of the
date of hereof and shall remain in effect until all obligations of Lessee to
Agent, under the Contract or under any other agreement, now existing or executed
hereafter, between Agent and Lessee have been discharged by performance.

     Lessee agrees that any and all payments due by Lessee to Lessor will be
made and all other monthly obligations under the Lease Agreement met before any
cash distribution, compensation including salaries, commissions, bonus, fees,
dividends and earnings and income generated or other payments are made to the
investors and or principals of Lessee.  To the extent such payments are not made
in accordance with the foregoing and to the extent that insufficient funds are
available to pay amounts owed to Lessor for any schedule under the Lease
Agreement, the entire Lease Agreement and all schedules thereunder will be
deemed in default pursuant to Section 11 of the Lease Agreement and such
delinquent payments will be subject to a late charge of 5% of the amount of such
payment, or such other lesser sum as permitted by applicable law, for each month
or part thereof for which said payments will be delinquent."

     The powers and authorities granted herein shall not be affected, impaired
or exhausted by any non-exercise thereof or by any one or more exercises
thereof.

     No person relying upon this Power of Attorney shall be required to see to
the application and disposition of any moneys, or other property paid to or
delivered to the Agent pursuant to the provisions hereof.

     Reproductions of this executed original (with reproduced signatures and a
certificate of acknowledgement signed by Agent) shall be deemed to be original
counterparts of this Power of Attorney.

     Agent agrees that it will not exercise its powers as agent unless Lessee is
in default of the Contract, this agreement or any other agreement, between
Lessee and Lessor, whether now existing or entered into hereafter.

     Lessee agrees it is liable for all costs and expenses, including without
limitation attorney's fees and court costs, incurred by Lessor, either as
assignee or as Agent, in enforcing its rights under this agreement.

     IN WITNESS WHEREOF, the parties have hereunto placed their hand and seal
the day written above.

                                           Accepted and Agreed to:
    Accepted and Agreed to:                Applied Data Communications, Inc. and
    Commercial Money Center, Inc.          Walter J. Kane
    (Lessor)                               (Co-Lessees)
By:                                 By:    /s/ Walter J. Kane
                                           Walter J. Jane
    (Please Print Name)                    (Please Print Name)

Title:                              Title: President

Date:                               Date:  6-22-99
<PAGE>

                            CERTIFICATE OF SECRETARY
                         AS TO ADOPTION OF RESOLUTIONS
                              (Corporate Customer)

     The undersigned, ____________________________________ (Corporate
Secretary), hereby certifies that he/she is now, and at all times herein
mentioned has been, the duly elected, qualified and acting Secretary of Applied
Data Communications, Inc. and Walter J. Kane as Co-Lessees. a duly organized and
existing corporation, and in charge of the minute book and corporate records of
said corporation; that the following is a full, true and correct copy of certain
resolutions adopted by the Board of Directors of said corporation at a meeting
thereof duly held on   _________________ (Date), at which meeting a quorum of
said Board was at all times present and acting; and that said resolutions have
not been modified nor rescinded and are at the date of this certificate in full
force and effect:

     WHEREAS it is in the best interest of this corporation to enter into a
     certain Equipment Lease Agreement, Equipment Financing Agreement or other
     agreement with Commercial Money Center, Inc. ("Lessor/Secured Party") and,
     where appropriate, commitments now or hereafter contemplating the receipt
     by this corporation of financial accommodation from Lessor/Secured Party
     under the terms and conditions of said Equipment Lease Agreement, Equipment
     Financing Agreement or other agreement and may in the future be in this
     corporation's best interests to enter into further such agreements or other
     agreements with Lessor/Secured Party.

     NOW THEREFORE BE IT RESOLVED:  That the officers of this corporation listed
     below, and each of them, are hereby authorized and directed to execute,
     acknowledge and deliver in the name of and on behalf of this corporation
     said Equipment Lease Agreement, Equipment Financing Agreement or other
     agreement, said commitments and any such further agreement.

     RESOLVED FURTHER:  That the officers, agents and employees of this
     corporation be and each of them is hereby authorized and empowered to do
     and perform such other acts and things, and to make, execute, acknowledge,
     procure and deliver all such other instruments and documents, on behalf of
     this corporation as may be necessary or be by such officer, agent or
     employee deemed appropriate to comply with, or to evidence compliance with,
     the terms, conditions or provisions of said Equipment Lease Agreement,
     Equipment Financing Agreement or other agreement, any such commitment or
     any said further agreement and to consummate the transactions from time to
     time contemplated thereby.

     RESOLVED FURTHER:  That this corporation hereby ratifies and confirms the
     acts of the officer, agents or employees of this corporation in heretofore
     entering into any Equipment Lease Agreement, Equipment Financing Agreement,
     commitment or other agreement with Lessor/Secured Party together with any
     other acts performed in relation thereto.

     RESOLVED FURTHER:  That the Secretary of this corporation be and he/she is
     hereby authorized and directed to execute, acknowledge and deliver a
     certified copy of these resolutions to Lessor/Secured Party and any other
     person or agency which may require a copy of these resolutions.

     RESOLVED FURTHER:  That the following are the true names and specimen
     signatures of the incumbent officers of this corporation authorized by
     these resolutions to so execute, acknowledge and deliver said Equipment
     Lease Agreement, Equipment Financing Agreement or other agreement, said
     commitments and said further agreements.

     (Type names below)          (Title)           (For Signature)
     WALTER KANE                 President         /s/ Walter J. Kane
     BARRY SUGDEN                Secretary         /s/ Barry K. Sugden Jr.

     RESOLVED FURTHER:  That Lessor/Secured Party is authorized to act upon
     these resolutions until written notice of the revocation thereof is
     delivered to Lessor/Secured Party, any such revocation in no way to affect
     the obligations of this corporation to Lessor/Secured Party under any
     agreements entered into by this corporation pursuant to the terms of these
     resolutions prior to receipt by Lessor/Secured Party of such notice of
     revocation.

IN WITNESS WHEREOF, the undersigned has executed this Certificate as of
__________________________ (Date).

  /s/ Barry K. Sugden Jr.
  (Secretary)

                            Single Officer Addendum

I further certify that I am the duly elected President and Secretary of said
corporation and that I am the only officer of said corporation and therefore the
only person authorized to execute documents and incur liabilities on the behalf
of said corporation as of the date of this Certificate

                                       (Secretary)

(Corporate Seal Must Be Affixed        Commercial Money Center, Inc.
But Failure Not To Affect              221 W. Crest, Suite 200
Validity Or Reliance)                  Escondido, CA 92025
<PAGE>

                              INDEMNITY AGREEMENT
                                 READ CAREFULLY

Each of the undersigned hereby affirms that the foregoing statements made and
answers given are the truth and are made to induce
______________________________________________________ (hereinafter called
Surety) to execute or procure the execution of any and all of the bonds
described therein, and any extension, modification, or renewal thereof, or
substitution therefore.  Each of the undersigned further affirms that he
understands the bond applied for is credit relationship, and hereby authorizes
Surety or its authorized agent, to gather such credit information considers
necessary and appropriate for purposes of evaluating whether such credit should
be granted.

IN CONSIDERATION of the execution of such bond, and in compliance with a promise
of the undersigned made prior thereto, the undersigned hereby agree, for
themselves, their personal representatives, successors and assigns, jointly and
severally, as follows:

1.  To reimburse Surety, upon demand made for; and to indemnify and keep
    indemnified Surety from:

    (a)  all loss, contingent loss, liability and contingent liability claim,
         expense, including attorney's fees, for which Surety shall become
         contingently liable by reason of such suretyship, whether or not Surety
         shall have paid same at the time of demand; and

2.  Surety shall have the exclusive right to determine whether any claims of
    suit shall, on the basis of liability, expediency or otherwise, be denied,
    paid, compromised, defended or appealed. An itemized statement of payments
    made by Surety for loss, contingent loss, liability or contingent liability,
    and/or expense, sworn to by an officer of Surety, or the voucher or vouchers
    for such payments, shall be prima facie evidence of the obligation of the
    undersigned to reimburse Surety.

3.  The parties agree that at all times the place and formation of the
    suretyship herein applied for and the place of performance of any and all
    obligations that might arise under it shall be ____________________________

4.  Each of the undersigned agrees to pay in full amount of the foregoing
    regardless of (a) the failure of the principle to sign any such bond or (b)
    any claim that other indemnities, securities, or collateral was to have been
    obtained or (c) the release, return or exchange by Surety with or without
    the consent of the undersigned, of any indemnity, security, or collateral
    that may have been obtained or (d) the fact that any party signed this
    instrument not bound for any reason.

5.  The undersigned hereby expressly waive notice from Surety of any claim or
    demand made against Surety or the principal is under the bond or of any
    information Surety may receive concerning the principal, or bond. Surety
    shall have the right to decline any or all bonds herein applied for.

6.  Whenever used in this instrument the plural term shall include the singular
    and the singular shall include the plural, as the circumstances require. If
    any portion of this agreement be in conflict with any law controlling the
    construction hereof, such portion of this instrument shall be considered
    deleted and the remainder shall continue in full force and effect.

7.  It is understood and agreed that it is the responsibility of each and every
    indemnitor to notify the surety in writing when there is a change of address
    and/or change of names.

8.  "All parties agree that any microfilmed, scanned or electrically digitized
    copy of this document made by Surety as a part of its record storage and
    retention program shall be effective as the original for all purposes."
<TABLE>
<CAPTION>
<S>                                                          <C>
          IMPORTANT                                          Signed this  22nd day of June, 1999
If sole owner, applicant must sign on behalf of firm.
Owner and spouse must sign personal indemnity below.         Applied Data Communications, Inc
                                                             FIRM NAME
If a partnership, two authorized partners must sign on
behalf of firm.  The two authorized partners and their       Walter Kane, President
spouses must sign personal indemnity below.                  PRINT NAME & TITLE

If a corporation, two corporate officers must sign on
behalf of firm.  Owners of the corporation and their         /s/ Walter J. Kane, President
spouses must sign personal indemnity below.                  SIGNATURE

                                                             Barry K. Sugden, CFO
                                                             PRINT NAME & TITLE

                                                             /s/ Barry K. Sugden, CFO
                                                             SIGNATURE
</TABLE>

                       STATEMENT OF PERSONAL INDEMNITORS

In consideration of the execution by _______________________________________ of
the suretyship applied for, each of the undersigned, jointly and severally,
agrees to be bound by all of the terms of the foregoing indemnity agreement,
executed by the applicant, as fully as though each of the undersigned were sole
applicant named herein, and admit to being financially interested in the
performance of the obligation which the surety applied for is given secure.

  Walter Kane
  Print Name or Names

  /s/ Walter J. Kane
  Indemnitor's Signature

  /s/ Karen L. Kane
  Spouse's Signature (If Single, So Indicate)
<PAGE>

                        DELIVERY AND ACCEPTANCE RECEIPT

LESSEE:  Applied Data Communications, Inc. and Walter J. Kane as Co-Lessees

VENDOR:
Lessee hereby represents, warrants and certifies:

1. All the equipment described on the Lease Agreement or on any attached
schedule has been delivered to the Lessee and properly installed; the Equipment
has been inspected and tested by Lessee and is in good and satisfactory
operating order; and the Equipment is therefore irrevocably accepted by Lessee
for all purposes under the Equipment Lease Agreement.

2. Lessee unconditionally accepts the Equipment and acknowledges that it has not
been accepted on a "trial" basis.

3. Lessee has read and agrees to all terms and conditions of the Lease,
including all attachments and addendums thereto, if any.  As more particularly
stated in the Lease, Lessee understands that the Equipment is leased to Lessee
"as is"; that Lessor disclaims all warranties, express and implied; that Lessor
is not responsible for installation, service, training or repairs; that the
Lease cannot be cancelled for any reason and that Lessee's obligation to make
the lease payments and perform its other obligations under the Lease are
absolute, unconditional, independent and not subject to any counterclaim, setoff
or defense.  This paragraph shall not be construed to alter or limit the terms
and conditions of the Lease.

We now request that you sign the lease and pay the equipment vendor.  We
understand the importance of this certification to you prior to paying the
vendor, and we understand we will be precluded from denying the truth of this
certification in the future.

X /s/ Walter J. Kane
Lessee Authorized Signature
Applied Data Communications, Inc. and Walter J. Kane as Co-Lessees

Walter J. Kane, President
Print Name and Title

6-22-99
Date

Prior to actual starting of your Lease, we will contact you to verify that your
equipment is in acceptable working order.

Should you wish to authorize someone else in your office to do this, please
complete and sign the section below.

Otherwise, we will assume that we must speak directly to you for this purpose.

I, Walter J. Kane, authorize ________________________ who holds the position of
_____________________, to conduct a telephone audit in my absence with the
Leasing Company.  I authorize him/her to accept equipment with regards to Lease
#9906184 and to agree to release funds to the vendor.

X /s/ Walter J. Kane
Co-Lessee Authorized Signature
Applied Data Communications, Inc. and Walter J. Kane

Walter J. Kane
Print Name and Title

6-22-99
Date
<PAGE>

                                  BILL OF SALE

PURCHASER: COMMERCIAL MONEY CENTER, INC.
SELLER:  Applied Data Communications, Inc. and Walter J. Kane as Co-Lessees
Amount: 20,000.00

                            AGREEMENT NUMBER 9906184

Seller, in consideration for sums paid to Seller by Purchaser, hereby sells,
transfers, and assigns to the Purchaser all of its right, title, and interest
(legal or equitable) in and to all the property ("Property") described in the
Agreement between Seller and Purchaser identified by the Agreement Number
specified above.

The Property is sold with the absence of liens, claims, or other encumbrances
by, through, or under Seller.

IN WITNESS WHEREOF, Seller has executed this Bill of Sale as of the date
specified below:

LESSEE: Applied Data Communications, Inc. and Walter J. Kane as Co-Lessees

/s/ Walter J. Kane
BY: SELLER AUTHORIZED SIGNATURE

TITLE:  President

DATE EXECUTED:  6-22-99
<PAGE>

                        AUTHORIZATION TO CHARGE ACCOUNT

  This Authorization to Charge Account ("Authorization") is part of the
consideration given to Commercial Money Center, Inc. or its assigns ("CMC") to
induce CMC to enter into Lease Agreement No. 9906184 ("the lease") with us.  We
understand that THIS IS A NONCANCELABLE AUTHORIZATION DURING THE TERM OF THE
LEASE.

  The Authorization to charge our account at our bank shall be the same as if we
had personally signed a check to CMC.  This Authorization shall remain in effect
until CMC notifies our bank in writing that wish to end this Authorization.  CMC
will so notify our bank when all sums due and owing to it pursuant to the Lease
have been received by CMC.

  This Authorization is entered into concurrently with the Lease and is hereby
incorporated therein.  If this Authorization, with or without our knowledge or
consent or, by the act of any third party, is in anyway terminated, stayed,
modified, or suspended without the written consent of CMC, such act or omission
shall be deemed a default under terms and provisions of the Lease and CMC may
thereupon exercise any and all rights and remedies as stated in the Lease.

  A record of your payment shall be included in our bank statement and will
serve as our receipt.  In the event of an error and with the written consent of
CMC, we have the right to reverse any transfer.  However, we must notify our
bank within fifteen days of the date of our bank statement or within forty-five
days after transfer was made.

  We understand and agree that our bank is not responsible for an error in the
amount of any transferred payment.  In the event of such an error, we will
reconcile directly with CMC.

                         IMPORTANT INFORMATION ON YOUR
                          PRE-AUTHORIZED LEASE PAYMENT
                                -A MUST READ!!-

  IN THE EVENT A PAYMENT DEBIT IS NOT HONORED BY YOUR BANK FOR INSUFFICIENT
FUNDS, ACCOUNT CLOSED, PAYMENT STOPPED OR ANY OTHER REASON, AN AUTOMATIC SERVICE
CHARGE OF $10.00 WILL BE ASSESSED AND BILLED TO YOU.

  I (We) hereby authorize our bank to charge our account each month and to pay
CMC the amount shown below.  I (We) have read, understand and agree with the
terms of this Authorization.

  Monthly payments:  $753.82 + 0.00 = 753.82 due on the 1st of each month.

LESSEE:            Applied Data Communications, Inc. and Walter J. Kane as Co-
                   Lessees

Signature:         /s/ Walter J. Kane

Title:             President

Date:              6-22-99

Bank Name:         City National Bank

Address:           4685 MacArthur Court

City, State, Zip:  Newport Beach, CA 92660

Account No.        023-720205

ABA Routing No.    122016066
<PAGE>

                           CERTIFICATE OF INCUMBENCY
                                (If Corporation)

I, _______________________________ (Name) as Secretary (Title) of Applied Data
Communications, Inc. and Walter J. Kane (Co-Lessee), hereby certify that the
following Officer(s) of this Corporation on the date hereof and at all times
since  , 19__  is (are) authorized and directed to negotiate, execute and
deliver on behalf of the Corporation all Lease Agreements and related documents
with Commercial Money Center, Inc. ("Lessor") whereby this Corporation will
lease from time to time various items of property to be used in the operation in
the business of the Corporation on terms and conditions which shall be
determined by said Officer(s) to be advisable and in the best interests of this
Corporation, and that the execution of such Lease Agreements by said Officer(s)
shall be conclusive evidence of their approval(s) thereof and that the
signature(s) set forth opposite the name(s) of the Officer(s) below is (are) the
genuine signature(s) of said person(s).

Section 1

Walter J. Kane         President                 /s/ Walter J. Kane
(Type Name)            (Title)                   (Specimen Authorized Signature)

Barry K. Sugden, Jr.   Chief Financial Officer   /s/ Barry K. Sugden, Jr.
(Type Name)            (Title)                   (Specimen Authorized Signature)

Section 2 (specimen signatures of Secretary of Corporation and the person
authorized to sign these documents)

IN WITNESS WHEREOF, I have affixed my name as SECRETARY (Title) of said
Corporation and have caused the Corporate Seal of said Corporation to be
hereunder affixed.

                                    Applied Data Communications, Inc. and
                                    Walter J. Kane as Co-Lessees
                                    (Lessee)

(SEAL)

                                           Signature:  /s/ Barry K. Sugden, Jr.

                                           Title:  SECRETARY

                                           Date:  June 11, 1999

This document must be signed by the Secretary of the Corporation.  If authorized
signer is also the Secretary, please include Articles of Incorporation.

Section 3<PAGE>

                                                                   EXHIBIT 10.58

                    SETTLEMENT AND MUTUAL RELEASE AGREEMENT

This Settlement and Mutual Release Agreement ("Agreement") is made and entered
into as of this 6th day of December, 1999, by, among and between MULTIMEDIA DISK
DUPLICATORS, a California Limited Partnership ("Multimedia"), STAR MEDIA
PARTNERS, L. P., a California Limited Partnership ("Star Media"), THOMAS GARLOCK
("Garlock"), WALTER J. KANE ("Kane") and APPLIED DATA COMMUNICATIONS, INC., a
Delaware corporation ("ADC"), with reference to the following facts and
circumstances:

RECITALS

A. On August 20, 1995 Multimedia and Star Media each filed actions against ADC
and Kane in the Orange County Superior Court.

B. On November 13, 1995, ADC and Kane executed Stipulations to Judgment in the
Multimedia and Star Media cases which required, among other things, certain
timely payments to avoid entry of the judgments.

C. ADC and Kane failed to comply with the terms of the Stipulations to Judgment
and on December 13, 1995, Multimedia and Star Media each obtained judgments,
against Kane and ADC.  The Multimedia judgment was in the sure of $733,325.03
and the Star Media judgment was in the sum of $655,122.46.

D. On December 16, 1995, Multimedia, Star Media, Kane and ADC each entered into
a settlement agreement wherein, among other things, the following occurred: 1)
Multimedia and Star Media collectively received 1,388,447 shares of ADC stock;
and 2) a proxy was delivered to Multimedia and Star Media for voting control of
all of the ADC stock Kane owned or controlled.

E. A dispute arose regarding the enforcement of the December 16, 1995 agreement.
In or about July 1999, Multimedia and Star Media began executing upon the
judgments they previously obtained in their litigation against Kane and ADC.  A
court hearing has been set to determine the rights of the parties concerning
enforcement of the December 16, 1995 agreement.

F. The parties to this Agreement have decided to resolve their disputes
concerning the above described litigation and the issues surrounding the
December 16, 1995 agreement.

                                       1
<PAGE>

TERMS OF AGREEMENT

In consideration of the mutual covenants, the promises herein contained, and the
foregoing recitals, Multimedia, Star Media, Garlock, Kane and ADC agree as
follows:

1. Board of Directors.  Star Media and Multimedia shall each be entitled to
appoint one person for election to a seat on ADC's Board of Directors.  The
fifth board seat, which is currently vacant, shall be filled by a majority vote
of the four other board members.  Star Media and Multimedia shall not nominate
or attempt to elect Michael Hawkins to ADC's Board of Directors, Star Media's
and Multimedia's designated appointees to the Board of Directors shall resign
their seats upon either: 1) public trading of ADC's stock at $1.00, or more, per
share for a period of 30 days; or 2) the sale of Star Media's and Multimedia's
shares of ADC's stock as outlined in paragraphs 5 and 7 below.

2. Blue Sky.  For all ADC stock sold under the private placement memorandum
beginning in September 1996, ADC will comply with applicable Blue Sky laws as
soon as is reasonably practical after execution of this Agreement.  Confirmation
of the status of ADC's compliance with applicable Blue Sky laws and a timetable
for compliance with applicable Blue Sky laws shall be provided in writing by
Stradling Yocca Carlson & Rauth, or other corporate counsel, within thirty days
from the date of execution of this Agreement. ADC shall indemnify and hold
harmless Garlock, Star Media and Multimedia if it is determined that ADC has
violated any Blue Sky laws.  Corporate counsel shall provide a current status
report on Blue Sky laws.

3. Board Meeting Minutes.  Within ten days from the date of execution of this
Agreement, ADC shall provide to Multimedia and Star Media true and correct
copies of the Minutes of the Board of Directors meetings from January 1997 to
the present.

4. Additional Shares.  ADC has issued and delivered 1,388,447 shares of its
stock to Multimedia and Star Media. ADC shall issue an additional 800,000 shares
of stock (in the form of 8,000 shares of ADC's Series B preferred stock which is
convertible to 800,000 shares of ADC's common stock) to be divided between
Multimedia and Star Media as follows: 422,400 shares to Star Media (issued as
4,224 shares of ADC's Series B preferred stock); 377,600 shares to Multimedia
(issued as 3,776 shares ADC's Series B preferred stock).  The certificates for
these additional shares of stock shall be delivered to Star Media and Multimedia
within thirty days of execution of this Agreement. Multimedia, Star Media and
Garlock agree to cooperate with ADC's investment bankers and underwriters by
entering into a "lock-out," or any other reasonable restrictions applicable to
ADC's insiders, for these 800,000 shares.  These shares are in consideration for
Multimedia, Star Media and Garlock waiving their right to past and future
interest on

                                       2
<PAGE>

the judgments, cancellation of the December 16, 1995 settlement agreement and
for the other terms of this Agreement.

5. Option to Buy Shares.  ADC shall have both the right of first refusal and the
option to buy any and all shares of stock issued to Multimedia and Star Media
for the purchase price of one dollar ($1.00) per share.  This right of first
refusal and option to buy shall expire two years from the date of the execution
of this Agreement.  Each of the 1,388,447 shares purchased for one dollar per
share (or if by a third party after ADC has declined its right of first refusal,
by the actual purchase price per share) shall set off and reduce the
$1,388,447.00 amount owed under Multimedia's and Star Media's judgments
against ADC and Kane.  ADC may purchase the additional 800,000 shares of stock
(issued as 8,000 shares of ADC's Series B preferred convertible stock) to be
issued in accordance with the terms of this Agreement at the same price of one
dollar per share (after adjusting for the conversion from preferred to common
stock), however, satisfaction of the judgments and the other obligations of
paragraph 7 are not conditioned upon the purchase of the additional 800,000
shares (issued as 8,000 shares of ADC's Series B preferred convertible stock).

6. Attorneys' Fees.  ADC shall pay to Multimedia, Star Media and/or Garlock up
to $70,000.00 in attorneys' fees and costs, subject to verification with true
and correct copies of invoices and/or canceled checks, upon execution of this
Agreement and within two days of ADC's receipt of funds already executed upon by
Multimedia.  Upon execution of this Agreement, Multimedia shall instruct the
Orange County Marshal, or other appropriate authorities, to return to ADC any
and all money executed upon in its litigation against ADC and Kane.

7. Satisfaction of Judgment.  Multimedia and Star Media shall immediately
prepare and file with the court complete satisfactions of judgment and releases
of all liens in their litigation against ADC and Pat Kane in accordance with the
following schedule for the purchase of the 1,388,447 shares of stock to satisfy
these judgments:

a. 25% payoff of $1,388,447.00 judgments - remove lien on Kane's house.

b. 50% payoff of S 1,388,447.00 judgments - file full satisfaction of judgment
in Star Media litigation and release all liens related thereto, resign one seat
on board of directors and amend Kane's proxy so that its only effect is to
provide Multimedia with sufficient votes to elect one member to the board of
directors.

c. 75% payoff of $1,388,447.00 judgments - file full satisfaction of judgment in
Multimedia litigation and release all liens related thereto.

                                       3
<PAGE>

d. 100% payoff of $1,388,447.00 judgments - resign remaining board of directors
seat and revoke Kane's proxy completely.

Provided that ADC and Kane are in compliance with the terms of the new
settlement agreement, Multimedia, Star Media and Garlock agree to refrain from
and forebear any and all of their rights to execute or levy upon the judgments
they have obtained against ADC and Kane until after the end of the two year
first right of refusal and stock purchase option period described in paragraph
5.

8. Default.  In the event of a default by any party or parties to this
Agreement, the non-defaulting party or parties shall give written notice of the
default to the defaulting party or parties.  The defaulting party or parties
shall have seven days from the date of mailing of said written notice to cure
the default.  A copy of the written notice of default shall be faxed on the date
of mailing to the defaulting party's or parties' counsel of record.  Should the
defaulting party or parties fail to cure the default within seven days of the
date of mailing of the written notice of default, the parties hereto agree that
the non defaulting party or parties may seek enforcement of the terms of this
Agreement through the provisions of Code of Civil Procedure section 664.6.

9. Return of Proxy.  As part of the December 16, 1995 settlement agreement, Kane
delivered to Multimedia and Star Media a proxy for voting control of the shares
of ADC stock he owned or controlled.  This proxy shall remain in effect unless
it is modified in accordance with paragraph 7b upon the 50% payoff of the
judgments and/or revoked in its entirety in accordance with paragraph 7d above
upon the 100% payoff of the judgments.

10. Cooperation During Refinance.  Kane is attempting to refinance the loan on
his personal residence.  In obtaining this refinance loan, Multimedia and Star
Media agree to temporarily remove their liens on his residence to accommodate
this refinance.  Kane will not obtain money from this refinance loan which
reduces the equity in the property, other than $10,000.00 to pay off credit card
debt and to pay for loan costs, points and fees related to the refinance loan,
nor will Kane sell, transfer, lease, assign, or otherwise encumber his personal
residence beyond the terms of the refinance loan.  Kane will notify Star Media's
and Multimedia's counsel of record within five days of completion of the
refinancing of his personal residence at which time the subject liens shall be
reinstated.

11. Releases.  Excepting only their respective rights to enforce the terms of
this Agreement, Multimedia, Star Media, Garlock, on the one hand, and ADC and
Kane, on the other hand, fully and forever release and discharge each other, and
their respective assignees, subsidiaries, transferees, predecessors and
successors in interest, employees, servants, agents, representatives, officers,
directors, and Parent corporations, from and

                                       4
<PAGE>

against all actions, proceedings, causes of action, claims for relief, demands,
rights, titles, interests, damages, losses, costs, expenses, disbursements
attorneys' fees), obligations, liabilities and other claims of every nature
whatsoever (collectively "Claims") arising from or otherwise relating in any way
to (a) the Multimedia litigation against Kane and ADC, which is Orange County
Superior Court case number 752044; (b) the Star Media litigation against Kane
and ADC, which is Orange County Superior Court case number 752046.

12. Binding Effect  The releases in this Agreement shall be binding upon, extend
to and inure to the benefit of the undersigned parties, and any and all of their
respective past, present, and future agents, employees, relatives, officers,
directors, shareholders, servants, heirs, beneficiaries, devisees, independent
contractors, partners, successors, predecessors, assignors, assignees,
transferors, transferees, guarantors, sureties, insurers, attorneys',
investigators, accountants, joint venturers and other representatives, and any
and all other persons and entities acting or purporting to act on their
respective behalf, and any and all firms, corporations, associations,
partnerships and other entities affiliated with, controlled by or otherwise
related to any of the undersigned parties.

13. Parties in Interest.  Except as expressly stated in this Agreement, nothing
in this Agreement, whether express or implied, is intended to confer third-party
beneficiary status or to confer otherwise any rights or remedies on any person
or entity (hereinafter collectively "third party"), other than the undersigned
parties and their predecessors, successors, assigns, affiliates and
representatives as described in 12 hereof.  Nor is anything in this Agreement
intended to relieve or discharge the obligation or liability of any third party
to any undersigned party to this Agreement.  Nor shall any provision hereof
afford any third party any right of subrogation, indemnity, contribution, set-
off or action over or against any party to this Agreement.

14. No Other Proceedings.  The undersigned parties hereby represent and warrant
to each other that none of the undersigned parties will or has initiated, or
will be or has been a party to or has any knowledge of any actions,
investigations or proceedings, whether judicial, governmental or administrative,
involving the subject matter of this Agreement.

15. Compromise.  This Agreement is a compromise of disputed claims and shall not
be construed or deemed to be an admission of liability or wrongdoing by any
party to any other party.  The undersigned parties further expressly agree that
nothing in this Agreement shall be construed as an admission or acceptance of
the validity of any claims, causes of action or contentions which may be made by
any party to this Agreement.  Neither this settlement nor any documents or
agreements made pursuant thereto shall be

                                       5
<PAGE>

admissible as evidence in any subsequent proceeding for any purpose whatsoever,
except in accordance with Evidence Code section 1123 and any proceedings for
enforcement of this Agreement pursuant to Code of Civil Procedure section 664.6.
This settlement has been made to avoid the expense, inconvenience and burden of
trial and of possible litigation proceedings, and so that the parties can
resolve their disputes and business relations in a mutually agreeable manner
rather than through court adjudication.

16. Full Authority.  Each of the parties to this Agreement hereby represents,
covenants and warrants that said party, and the signatory of said party, has the
full right, power and authority to execute this Agreement on behalf of said
party, and to execute any and all documents as may be necessary to effectuate
the terms of this Agreement, and that neither party, nor any signatory for said
party has sold, assigned, transferred, conveyed, hypothecated, encumbered or
otherwise disposed of any rights, titles, interests, causes of action or other
claims which said party may have or have had in relation to the transactions or
other matters described in this Agreement or which are related in any way to the
matter.

17. Informed Consent.  Each undersigned party hereby declares that said party
has received sufficient information, either through said party's own legal
counsel or other sources of said party's own selection, so as to be able to make
an intelligent and informed judgment whether to enter into this Agreement.  Each
undersigned party further states that each has read this Agreement in its
entirety prior to executing this document, and that each has executed this
Agreement voluntarily, with competence and capacity to contract and with
knowledge of the terms, significance and legal effect of this Agreement.  By
executing this Agreement, it is understood by each party that substantial rights
may be compromised and/or waived in their entirety.

18. Attorneys' Fees, if any action, motion or proceeding at law or in equity is
instituted to enforce or interpret the terms of this Agreement, the undersigned
parties agree that the prevailing party or parties therein shall be entitled to
an award of reasonable attorneys' fees, costs, and necessary disbursements, as
determined by a court of competent jurisdiction, in addition to any other relief
to which said party or parties may be entitled.

19. Further Assurances. The undersigned parties each agree to execute all
documents and perform all acts necessary or appropriate to effectuate the
performance of this Agreement.

20. Severability and Gender. It is intended that each paragraph of this
Agreement shall be treated as separate and divisible, and in the event that any
paragraphs are deemed unenforceable the remainder shall continue to be in full
force and effect so long as the

                                       6
<PAGE>

primary purpose of this Agreement is unaffected. The masculine, as used herein,
includes the neuter and feminine. The plural includes the singular, including
the references to "parties." The term "parties" used herein encompasses each and
all persons and entities described herein.

21. Complete Instrument.  This Agreement contains the complete understanding
made between or among the parties with respect to the Action and any other
claims being settled and released by this Agreement.  This Agreement cannot be
amended or modified in any manner except by a writing executed by each of the
undersigned parties or by their valid successor(s).  All undersigned parties
agree and acknowledge that no representations, warranties, covenants, assurances
or other promises not specifically set forth in this Agreement have been made by
any party in connection with the subject matter of this Agreement.  Nor is any
party relying on any such conduct in entering into this Agreement.  Any
negotiations or other communications between the parties relating to the subject
matter of this Agreement are superseded by this document and of no force or
effect.  By entering into this Agreement, the parties hereby cancel the terms of
the December 16, 1995 agreement.  This Agreement has been negotiated and
prepared by and for all undersigned parties equally and shall not be construed
as having been drafted by any particular party or parties.

22. Counterparts. This Agreement may be signed in counterparts, and each
counterpart shall have the same force and effect as though the signatures were
contained in a single document.

23. Applicable Law.  This Agreement is made under and shall be interpreted and
enforced by the laws of the State of California.

24. Facsimile and Photocopy Signatures.  So as to expedite the resolution of
this dispute, the parties hereto agree that a facsimile or photocopy of a
signature on this Agreement shall have the same binding effect as an original
signature.

IN WITNESS WHEREOF, the undersigned parties have executed this Agreement
effective as of the date and year first above written.

Applied Data Communications, Inc.,
a Delaware corporation

By:  /s/ Walter J. Kane  12/6/99

                                       7
<PAGE>

/s/ Walter J. Kane 12/6/99
Walter J. Kane

MultiMedia Disk Duplicators,
a California Limited Partnership

By: /s/ Thomas Garlock
    Thomas Garlock, President
    MultiMedia Finance Corporation
    General Partner

Star Media Partners, L.P.,
a California Limited Partnership

By: /s/ Thomas Garlock
    Thomas Garlock, President
    Media Capital Associates, Inc.
    General Partner

/s/ Thomas Garlock
Thomas Garlock

                                       8
<PAGE>

Approved as to form and Content.

Gorry & Meyer, L.L.P.

By: /s/ Timothy J. Gorry, Esq.
Timothy J. Gorry, Esq.
Attorneys for Multimedia Disk
Duplicators, Star Media Partners,
L.P. and Thomas Garlock

Gelber, Darling & Robertson
By: /s/ Jon R. Robertson
Jon R. Robertson, Esq.
Attorneys for Walter J. Kane
and Applied Data Communications,
Inc.

                                       9
<PAGE>

                                 LAW OFFICES OF
                          GELBER, DARLING & ROBERTSON
             A PARTNERSHIP INCLUDING A PROFESSIONAL LAW CORPORATION
                                    PLAZA TOWER             LAGUNA BEACH OFFICE
TELEPHONE               600 ANTON BOULEVARD, SUITE 1600        (949) 497-5415
(714) 979-5769           COSTA MESA. CALIFORNIA 92626
FACSIMILE
(714) 979-8134

                                                        FILE NO.

                                                            REPLY TO
                                                            COSTA MESA OFFICE
December 15, 1999

VIA TELECOPIER & U.S. MAIL
(714) 668-5229

Mr. Walter J. Kane
APPLIED DATA COMMUNICATIONS, INC.
3324 South Susan Street
Santa Ana, California 92704

Re: Multimedia Disk Duplicators v. Applied Data Communications, Inc.

Dear Pat:

With the signing of the December 6, 1999 Settlement Agreement entered into,
between and among Multimedia Disk Duplicators, Star Media Partners, Thomas
Garlock, Applied Data Communications, Inc. and you individually, the above-
captioned litigation and the Star Media Partners litigation are each settled.

Provided that Applied Data Communications, Inc. complies with the terms of the
settlement agreement, it has two years within which to purchase Multimedia Disk
Duplicators' and Star Media Partner's 2,188,447 shares of Applied Data
Communications, Inc. stock at one dollar per share of common stock. During this
two year period, Multimedia, Star Media and Garlock agree to cooperate with
ADC's investment bankers and underwriters by entering into a "lock-out," or any
other reasonable restrictions applicable to ADC's insiders, for 800,000 of these
shares.

Applied Data Communications, Inc.'s cumulative purchase of 694,223.5 shares of
Multimedia Disk Duplicators' and Star Media Partner's stock shall result in the
complete satisfaction of Star Media Partners' judgment and requires those two
entities to resign one of their seats on the Board of Directors. The cumulative
purchase of 1,041,335.5 shares of common stock from Multimedia Disk Duplicators
and Star Media Partners shall result in the complete satisfaction of Multimedia
Disk Duplicators' judgment. The cumulative

                                       10
<PAGE>

Mr. Kane
December 15, 1999
Page Two

purchase of 1,388,447 shares of common stock from Multimedia Disk Duplicators
and Star Media Partners shall require those two entities to relinquish their
proxy over your individual stock and they must resign their remaining seat on
the Board of Directors.

Congratulations on the resolution of these matters!

Very truly yours,
/s/ Jon R. Robertson
JON R. ROBERTSON

JRR: vs
1110/kane01

                                       11

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