Document:

August 30, 2004

Phone 1, Inc.
100 North Biscayne Blvd, Suite 2500
Miami, Florida 33132

Attention: Mr. Syed Naqvi, CFO

Ladies and Gentleman:

      We are pleased to confirm that we are extending to you an Overdraft
Facility of up to an aggregate amount of $1,000,000 (the "Amount") outstanding
at any one time (the "Overdraft Facility"), which Overdraft Facility may be used
by your company for operating expenses. This Overdraft Facility shall be
available to you in the Account No. 1008100370 (the "Account") at our bank on
the date hereof. This Overdraft Facility is subject to the terms and provisions
set forth herein.

      The Amount shall be evidenced by a single promissory note of your company
in the form of Exhibit A hereto, dated as of the date hereof, payable to our
bank in a principal amount equal to $1,000,000, under which we, subject to the
terms and conditions of this Overdraft Facility, shall make available the
Overdraft Facility to your company.

      Borrowings (drowdowns) under this Overdraft Facility may be made from time
to time and shall be repayable, inclusive of interest and fees thereon, on
demand.

      Any amounts outstanding on the Overdraft Facility shall bear interest at a
rate per annum equal to 7% or the highest interest rate permitted by law,
whichever is the lowest (the "Interest Rate"). The interest shall be payable
monthly starting September 30, 2004. Notwithstanding anything contained herein
to the contrary, you shall maintain an amount equal to the interest due on the
outstanding balance of the borrowings (drowdowns) in the Account.

      All payments of principal, interest, and fees payable by you under this
Overdraft Facility shall be payable in lawful money of the United States of
America. You hereby, specifically grant to us the authority and right to take
amounts when due for any borrowings (drowndowns) under this Overdraft Facility,
interest or fees, from the Account and you agree you shall sign any
authorizations or other documentation, which we may require to take for such
actions.

      You shall have the right, at any time or from time to time, without
premium or penalty, to prepay all or part of the unpaid principal amount of the
outstanding borrowings (drowdowns) hereunder together with interest accrued on
the amount prepaid to the date of any such prepayment.

<PAGE>

      This Overdraft Facility may be utilized by the company for a period of one
year ending on August 29, 2005; provided however that, WE IN OUR SOLE DISCRETION
MAY DEMAND PAYMENT AND TERMINATE THIS OVERDRAFT FACILITY AT ANY TIME.

      All payments under this Overdraft Facility shall be made without deduction
or withholding for and free and clear of any taxes, levies, imposts or duties of
any nature, present or future, unless such deduction or withholding is required
by law, in which event the undersigned shall pay such additional amounts as
shall result in the recipients of such amounts as would have been received by it
hand no such deduction or withholding been required.

      You hereby agree to pay us on demand all fees, costs and expenses, if any
(including reasonable counsel fees and expenses), in connection with the
collection or enforcement (whether through negotiations, legal proceedings or
otherwise) of this Overdraft Facility.

      All notices, requests and other communications hereunder must be in
writing and delivered personally against written receipt, by facsimile
transmission with answer back confirmation or mailed by overnight (or in the
case of notices being sent or delivered outside the United States, second day)
courier prepaid, at the following addresses or facsimile numbers:

      If to Phone 1, Inc to:

      Phone 1, Inc.
      100 North Biscayne Blvd, Suite 2500
      Miami, Florida, 33132
      Attn: Mr. Syed Naqvi
      Fax: (305) 371-6540

      If to our bank, to:

      GNB Bank Panama S.A
      Calle Manuel Maria de Icaza 19
      Area Bancaria - Apartado 4213
      Ciudad de Panama, Panama.
      Attn: Magda Rodriguez
      Fax: (011-507) 215-7560

      All such notices, requests and other communications will (i) if delivered
personally to the address as above provided, be deemed given upon delivery, (ii)
if delivered by facsimile transmission to the applicable facsimile number as
above provided, be deemed given upon receipt, (iii) if delivered by courier to
the address provided, be deemed given on the earlier of the first business day
(second business day in the case of notices given or sent outside the United

<PAGE>

States) following the date sent by such courier or upon receipt (in each case
regardless of whether such notice, request or other communication is received by
any other person to whom a copy of such notice is to be delivered). You may from
time to time change your address, facsimile number or other information for the
purpose of notices to you by giving notice to us specifying such change at least
ten (10) business days prior to the effective date of such notice. Business Days
under this Overdraft Facility means any day other than Saturday, Sunday or any
day on which banking institutions in the Republic of Panama are authorized or
obligated by law or administrative orders to close.

      THIS OVERDRAFT FACILITY SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE DOMESTIC LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO ANY
CHOICE OF LAW OR CONFLICT OF LAW PROVISION OR RULE.

      IN ANY ACTION, SUIT, OR PROCEEDING, IN RESPECT OF OR ARISING OUT OF THIS
OVERDRAFT FACILITY, YOU AND OUR BANK MUTUALLY WAIVE, TO THE FULLEST EXTENT
PERMITTED BY LAW, TRIAL BY JURY AND ANY CLAIM FOR CONSEQUENTIAL, PUNITIVE OR
SPECIAL DAMAGES.

      All computations of interest hereunder shall be made on the basis of a
year of 360 days for the actual number of days (including the first day but
excluding the last day) occurring in the period for which such interests are
payable.

<PAGE>

      If this Overdraft Facility is acceptable to you, please sign below by an
authorized officer and return to us by facsimile signature and overnight
courier.

                                            Very truly yours.

                                            GNB BANK PANAMA S.A.

                                            By: __________________________
                                            Name: ________________________
                                            Title: _______________________

Agreed to and accepted:

PHONE 1, INC.

By: _________________________
Name: _______________________
Title: ______________________

<PAGE>

THIS NOTE MAY NOT BE TRANSFERRED, SOLD, PLEDGED OR OTHERWISE DISPOSED OF EXCEPT
IN ACCORDANCE WITH ALL APPLICABLE FEDERAL AND STATE SECURITIES LAWS.

                                      NOTE

$1,000,000                                                       New York, NY
                                                                 August 30, 2004

            FOR VALUE RECEIVED, Phone 1 Inc., a Florida corporation (the
"Borrower"), having a principal office at 100 North Biscayne Blvd, Suite 2500,
Miami, Florida 33132 hereby promises to pay to the order of GNB Bank Panama S.A.
("Lender") on demand, at Calle Manuel Maria de Icaza 19, Area Bancaria -
Apartado 4213, Panama City, Republic of Panama, or such other place (the
"Office"), as may be designated by the Lender in a written notice given to the
Borrower, in lawful money of the United Sates of America in New York Clearing
House funds, the principal sum of Third Million ($1,000,000.00) United States
Dollars (the "Principal Amount").

            Capitalized terms used herein but not defined shall have the
meanings ascribed to them in the Overdraft Facility, dated as of the date
hereof, between the Borrower and the Lender.

            The Borrower promises also to pay interest on the unpaid Principal
Amount in like money at said Office from the date hereof until paid or upon
demand at a rate per annum equal to 7% or the highest interest rate permitted by
law, whichever is the lowest. Interest on the Principal Amount shall be paid
quarterly by Borrower. Any interest due under this Note may be offset by the
Lender as against any funds of the Borrower on deposit at the Lender, if any.

            In the event that the Lender exercises its right to demand payment
to with respect to only a portion of the outstanding Principal Amount and/or
accrued interest under this Note, that portion of the Principal Amount not so
exercised shall continue to accrue interest and shall be repayable by the
Borrower in accordance with the terms hereof and the Borrower shall issue a new
promissory note to the Lender in substantially the form of the surrendered Note,
in an aggregate principal amount equal to the remaining unpaid principal balance
of the surrendered Note.

            All payments under this Note shall be made without deduction or
withholding for and free and clear of any taxes, levies, imposts or duties of
any nature, present or future, unless such deduction or withholding is required
by law, in which event the undersigned shall pay such additional amounts as
shall result in the recipients of such amounts as would have been received by it
hand no such deduction or withholding been required.

            The Borrower shall pay on demand all losses, costs and expenses, if
any (including reasonable counsel fees and expenses), in connection with the
collection or enforcement (whether through negotiations, legal proceedings or
otherwise) of this Note.

            The Borrower hereby waives presentment, demand, protest or notice of
any kind in connection with this Note.

            No failure on the part of Lender to exercise, and no delay in
exercising, any right hereunder shall operate as a waiver thereof; nor shall any
single or partial exercise of any right hereunder preclude any other or further

<PAGE>

exercise thereof or the exercise of any other right. The remedies herein
provided are cumulative and not exclusive of any remedies provided by law.

            This Note, having been signed in the State of New York, shall be
governed by and construed in accordance with the laws of the State of New York,
United States of America, without regard to conflict of law principles.

            Any proceedings with respect to the interpretation of this Note or
the rights of the Lender and obligations of the undersigned shall be exclusively
brought in the United States District Court for the Southern District of New
York or, if such court lacks subject matter jurisdiction, in the Supreme Court
of the State of New York, County of New York and the undersigned waives the
right to object to the jurisdiction or venue of either such Court or to claim it
is inconvenient forum.

                                       PHONE 1 INC.

                                       By:____________________________
                                       Name:
                                       Title:EXHIBIT 10.1

                                                    (Agreement Number: 00460403)

                 JINSA WEIKOOKIN TOOJA GIUP JUNYONG SANUP DANJI

                           RESIDENT AGREEMENT (LEASE)

                      KOREA INDUSTRIAL COMPLEX CORPORATION

<PAGE>

Agreement Number: 00460403

JINSA FOREIGN INVESTMENT COMPANY EXCLUSIVE INDUSTRIAL DISTRICT RESIDENT (LEASE)
AGREEMENT

Description of the Real Estate

Location: Wei 1 Pil-ji, 601 Bunji, Bangji-ri, Sanam-myun, Sacheon City, Kyung
Nam
Size of Land: 27,270.9 m2
Use Purpose Zoning: Industrial Use District

In regards to the real estate described above, the Chairman of Korea Industrial
Complex Corporation (hereinafter, referred to as "Party A") and SpatiaLight
Korea, Incorporated (as further described below) (hereinafter, referred to as
"Party B"), which is to lease as a lessee the aforementioned real estate
mutually set forth in this lease agreement as follows:

Further description of Party B:

<TABLE>
<CAPTION>
    ------------------------ ----------------------- --------------------------- ---------------------------
    Trade Name (Name of      SpatiaLight Korea,      Company Representative      Robert A. Olins
    the Corporation)         Inc.
    ------------------------ ----------------------- --------------------------- ---------------------------
<S>                          <C>                                                  <C>                <C>
    Address                  161-6 Jungui-ri, Sacheon-up, Sacheon City, Kyung Nam
    ------------------------ -------------------------------------------------------------------------------
    Class of Business        Manufacturing of air    Classification    32300     Manufactured       LCos
                             transmitting            number                      product            chip
                             reception products,
                             other multimedia
                             products, and sound
                             and related machines
                             and products
    ------------------------ ----------------------- ----------------- --------- ------------------ --------
    Size of Construction     Manufacturing Plants and Facilities: 5.544.58 m2   Auxiliary Facilities:
                             2,123.32m2  Total: 7,667.9 m2
    ------------------------ -------------------------------------------------------------------------------
    Estimated start of       September 2004          Estimated date of           April 2005
    construction                                     completion
    ------------------------ ----------------------- --------------------------- ---------------------------
    Amount of foreign        10,560 million won (equivalent to USD 9.6 million dollars)
    investment
    ------------------------ -------------------------------------------------------------------------------
</TABLE>

Article 1.   Term of Lease

The term of the lease is the fifty years from September 9, 2004 to September 8,
2054 (with re-leases in 10-year units).

Article 2.   Size of Leased Land and Lease Fee

(1)   The size of the land being leased is 27,270.9 m2.

(2)   The fee of the lease shall be 86 won per month until November 2004, and
      the fee thereafter shall be the amount set by the Minister of Commerce,
      Industry and Energy.

(3)   If it is applicable for a lease abatement according to Section 13 of the
      Laws and Regulations for Foreign Investment Incentive or "Basic Plans for
      Exclusively Foreign Company Industry District Management", the lease price
      may be abated by Party B's request to Party A. After the decision for
      lease abatement is made according to Paragraph 3 above, Party A may cancel
      the abatement and retroactively assess and collect the abated amount in
      the event that Party B loses the status for such abatement or does not
      perform the conditions for such abatement.
<PAGE>

Article 3.   Payment of Lease Certification and Lease Fee

(1)   At the time this agreement is mutually agreed upon, Party B shall pay a
      lease certification in the amount equivalent to one (1) year of lease
      payments based upon the monthly lease payments and pay the lease payment
      for that year. In determining the number of months for such computation,
      any fraction less than one month shall be considered one month.
(2)   The lease payment shall be prepaid for one year, the deadline for such
      payment shall be the last day of the previous year, and the payment shall
      be paid and deposited into the financial institution designated by Party
      A. In the event that the lease payment needs to be paid in installments
      due to uncontrollable circumstances, it may be paid in four (4) or fewer
      installments. In such case, there shall be an additional payment as
      interest at the annual rate of eight (8) percent on the unpaid balance.
(3)   For any late lease payment as allowed according to the provision of
      Paragraph 2 above, there shall be additional late fees at the rate
      equivalent to that set in the Rules and Regulations in "Additional Taxes
      and Other Taxes According to National Tax Levi and Collection".
(4)   If Party B should be repeatedly late in lease payment resulting in
      additional late fees, the rules and regulations of "Provisions for Late
      Fees" from "Laws for National Tax Levi and Collection" may be applied for
      such collection.

Article 4.   Ascertainment of the Size of Leased Land and Settlement of Lease
             Price

(1)   If as a result of a land survey there is an increase or decrease in the
      size of the land leased to Party B, that shall be effected and the
      adjusted size for the land shall be called the ascertained size of the
      land.
(2)   Based upon the ascertained size of the land, the lease fee and lease
      certification shall be revised retroactively effective as of the date of
      this agreement without any imposition of interest to either parties.

Article 5.   Lessee's Obligations and Limitations in Claims

      Party B shall perform the prudent administration of the property in good
      faith, fulfill all obligations, bear its share of all necessary
      obligations for preservation of the leased land and for the purposes of
      usage and its enduring economic gains, and shall not claim any expense
      reimbursement claims or other claims that might be discussed in the laws
      and regulations of Civil Law Section 203 and/or 626.

Article 6.   Limitations in the Usage of the Leased Land

Party B shall not undertake without prior acceptance by Party A if any of the
following items should apply:

1.    Changes in purpose of usage and/or purpose of economic gain.
2.    Transfer or sublease of the leased land or disposition of any right or
      privilege.
3.    Change or alteration of the original state of the leased land
4.    Conveyance to third party in any form of the facilities built upon the
      leased land.

Article 7.   Cancellation of Lease

(1) Party A is entitled to cancel the lease agreement if Party B is in involved
in any of the following items:

1.    If Party B is involved in any of the acts stated in Article 6 without
      prior written acceptance from Party A.

2.    According to the provisions from Article 42 of Laws Pertaining to Industry
      Self Revitalization and Incorporation of Such Industrial Company, there
      arises a reason to cancel the lease agreement.

3.    Party B does not pay the lease fee for three months or longer.

4.    Party B does not perform its proposed foreign investment (within three
      years) according to the proposed business plan for company building and
      establishment as submitted in the lease agreement application.

5.    There is an ownership change in the portion of foreign investment to less
      than 30 percent (30%) after the lease agreement that is legally binding.

6.    There is a breach of any condition of the lease agreement or of any clause
      of the lease agreement.

(2)   In the event that Party A terminates the lease for provisions discussed in
      Paragraph 1 above, Party B shall not be entitled to any claims whatsoever
      for loss due to the cancellation of lease regardless of any loss sustained
      by Party B.
<PAGE>

(3)   In the event that Party B cancels the lease according to the provisions
      discussed in Paragraph 1 above, a refund shall be made for the lease
      certification and the prepaid lease fee after a reduction is made for
      unpaid lease payments, late fees and expenses for reverting the property
      to the original state. In the event that there are excess expenses,
      actions against Party B's assets may be taken such as lien or other venue.

Article 8.   Request for Termination of Agreement

      If Party B desires to terminate this agreement during the term of this
      agreement for reasons beyond Party B's control, an application for
      termination shall be submitted, and Party A shall terminate the lease
      agreement within one month.

Article 9.   Start of Construction of Plants, etc.

(1)   In building plants and other facilities for production and manufacturing,
      Party B shall meet the requirements in Section 8 of the "Laws Pertaining
      to Industry Self Revitalization and Establishment of Such Industrial
      Company" regarding the standards of building plants as well as Section 33
      regarding meeting the requirements for buildings within structural and
      zoning restrictions.
(2)   In constructing buildings according to the provisions discussed in
      Paragraph 1 above, Party B shall make a request for approval to Party A
      and Party A shall make approval after taking the necessary procedures for
      restoration to the original state, and issuing a letter of approval.

Article 10.  Restoration to Original State

      When the term of lease expires, is cancelled or terminated, Party B shall
      donate the building and plant(s) and other facilities constructed upon the
      land to the national government or a self-governing local government or
      district within the time frame that Party A designates, and shall restore
      the property to its original state as well as bear all the expenses for
      restoration and return it to Party A at Party A's presence.

Article 11.  Extension of Term of Lease

      In the event Party B desires to extend the term of lease as discussed in
      Article 1, such extension shall be requested three months before the term
      expires. Party A shall examine Party B for the performance according to
      Party B's Proposed Business Plan and shall give extension unless there is
      a special reason not to.

Article 12.  Responsibility for Compensation

     In the event that Party B causes any loss due to omission or violation of
     stated obligations so that Party A incurs expenses or losses, Party B shall
     take the responsibility therefor and reimburse or restore to Party A such
     expenses and losses.

Article 13.  Modifications to Matters in Residential Agreement

(1)   When Party B wants to change any part of the lease agreement, it shall be
      made in compliance with Section 35 of Laws Pertaining to Industry Self
      Revitalization and Establishment of Such Industrial Company. Proof of such
      compliance shall be attached to an Application for Change in Lease
      Agreement in order to make such changes with Party A.
(2)   Party B shall bear any and all expenses and losses associated with Party
      B's non-compliance for items discussed in Paragraph 1 above.
<PAGE>

Article 14.  Fees and Expenses for Common Areas

(1)   Party B shall share Party B's portion of the burden that is determined
      exclusively by Party A for the use of common facilities for its fees and
      expenses for the preservation, repair and maintenance.
(2)   In the event that Party B does not pay the fees and expenses as discussed
      in Paragraph 1 above within the time determined by Party A, there shall be
      charged an additional late charge on the amount equal to the late fee rate
      Housing & Commercial Bank charges for regular loans.

Article 15.  Restrictions on Common Area Usage

(1)   In the event Party B does not pay the fees and expenses for common area
      for three months, Party A has the right to exercise restrictions for Party
      B not to use the common area. Moreover, Party A may execute procedures for
      a lien on Party B's assets to secure and correct such condition.
(2)   Party B shall not make any adverse reaction to Party A's actions taken as
      discussed in Paragraph 1 above.

Article 16.  Environment Preservation and Security Management

(1)   According to the Laws pertaining to Environment Protection and Related
      Laws, Party B shall construct systems for discharge, permit or license for
      such discharge system construction shall be obtained. After such
      installation and final approval, a copy of such approval shall be
      submitted to Party A. The same procedures shall be applied to any changes
      thereto.
(2)   Any discharge to be made, whether general or specified, during Party B's
      construction of plants and facilities and during their operation after
      completion shall be treated and handled by an independent discharge
      specialist in compliance with the rules and procedures therefor.
(3)   In order to help promote environmental protection, Party B shall help
      participate in projects that Party A endeavors for the
      Common-Pollution-Protection of the Industrial District. (4) Party B shall
      comply with Party A's direction and guidance for the protection and
      security of the Industrial District according to the Laws for Establishing
      and Keeping a Reserve Army, the Basic Laws for Civil Defense Army, and
      laws and related regulations for protection of important national building
      and resources from the Ministry of Commerce, Industry and Energy.

Article 17.  Taxes and Other Public Charges

      After the lease agreement, all taxes and public levies assessed on the
      leased property shall be borne by Party B even if the assessment is not
      made to Party B.

Article 18.  Relation to Other Regulations

      For items that are not stated in this agreement, the rules and regulations
      set forth in the Laws Pertaining to Industry Self Revitalization and
      Establishment of such Industry Company, the Guidelines for Exclusively
      Foreign Entity Use District, and the Basic Plan for Industrial District
      Management as well as the rules and regulations Party A establishes for
      lease agreements shall be applied.

Article 19.  Reports

Party B shall report to Party A as designated by Party A when any of the
following is applicable:

1.    Concerning registration (and any subsequent changes) as a foreign
      investment company according to the Laws for Promotion of Foreign
      Investment,
2.    Concerning the start of construction of plant buildings, additions,
      completion of construction and start of plant operations,
3.    Concerning production and manufacturing, export, employment and plant
      operations, 4. Concerning temporary shutdown and closing of business
      operations, and/or 5. Concerning anything that Party A decides to be
      deemed necessary.
<PAGE>

Article 20.  Other Matters

(1)   Party B shall perform geological and related inspection and testing, etc.,
      that are deemed necessary for this leased land and its construction at its
      own schedule and expenses.
(2)   Party B shall build a system for pollution protection to protect and
      preserve the surrounding environment and to protect against water
      contamination. Therefore, a self-purifying system shall be installed if
      plant operation begins before a main facility for sewer control is
      completed and operational.
(3)   During construction of building and plants, Party B shall protect against
      damage to roads, parks, water lines and sewer systems and other public
      facilities. In the event that Party B causes any damages, it shall restore
      same to its original state at Party B's own responsibility.
(4)   Party B shall not take away employees from companies and their supporting
      entities within this Industrial District in the same or similar line of
      business who are considered technical employees or highly skilled
      employees.

Article 21.  Matters of Special Agreements and Additional Agreements

        In the case that Party A determines that an additional agreement is
        needed for Party B's performance and compliance of this agreement beyond
        and above this agreement, a separate agreement shall be made to Party B
        as addition to this agreement.

To certify that this agreement is mutually agreed upon, two sets of this
agreement shall be made and sealed and signed and Party A and Party B, each of
which shall receive and keep one copy thereof.

September 9, 2004

Party A
         Address: 188 Guro-dong, Guro-gu, Seoul, Republic of Korea
         Name: Korea Industrial Complex Corporation
         C.E.O.: Dong Kun Kim

Party B
         Address: 161-6 Jungui-ri, Sacheon-up, Sacheon City, Kyung Nam
         Business Name (Corporate Name): SpatiaLight Korea, Inc.
         C.E.O.: Robert A. Olins

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