Document:

Exhibit # 10.06c

                           Acquisition Agreement - GST

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                               TELEPHONE AND TELEVISION
                              LEASE AND ACCESS AGREEMENT

         Description of Project:  Promontory View  Apartments  consisting of 306
         apartment  units,  at the corner of Deerwood Road and Deerwood Place in
         San Ramon, in the County of Contra Costa, State of California.

         This Telephone and Television Lease and Access Agreement ("Agreement"),
is entered into as of this 1st day of November 1996 ("Effective  Date"),  by and
between  Crow  Canyon  Developers,   Ltd.,  a  California  limited  partnership,
hereinafter  called  "Lessor,"  and GRI  Telecommunications,  Inc., a California
corporation, hereinafter called "Lessee."

                                       RECITALS

This Agreement is made with respect to the following facts and circumstances:

         A.  Lessor  is  the  owner  and  developer  of a  certain  multi-family
residential apartment complex located in San Ramon, California commonly known as
Promontory  View   Apartments   consisting  of  306  apartment  units  and  more
particularly  described on Exhibit "A" attached  hereto.  Such project is herein
sometimes referred to as the "Project."

         B. The Lessor has developed the Project in  conjunction  with a related
and  adjacent  project  consisting  of 400  apartment  units  commonly  known as
Promontory Point Apartments (the "Related Project").

         C. Lessee is engaged in the business of installing and operating
private telephone systems and private  television  systems within apartment
complexes similar to the Project.

         D.  Lessor  and  Crow  Canyon  Communications,   a  California  general
partnership   ("Communications"),   entered  into  that  certain  Telephone  And
Television  Room  Lease And  Access  Agreement  dated  August  8,  1992  ("Prior
Agreement") pursuant to which Communications installed portions of the telephone
and television  systems employed at the Related Project.  Lessee is an affiliate
of  Communications.  In connection with the entry of Lessor and Lessee into this
Agreement, the Prior Agreement is being terminated.

         E.  Lessee has  participated  in the  installation  of  portions of the
telephone and television systems to the employed at the Project.  The television
system  installed  at  the  Project,  is  herein  sometimes  referred  to as the
"Television  System". The telephone system installed at the Project is sometimes
referred to as the "Telephone  System".  A portion of the equipment  employed in
connection  with both the  Television  System  and the  Telephone  System at the
Project is located in the Related  Project and in  particular is located in that
area of the Related  Project  commonly  known as the  "Telephone  and Television
Equipment  Room"  which  area is  leased  to  Lessee  pursuant  to that  certain
Telephone and  Television  Lease and Access  Agreement by and between Lessor and
Lessee in connection with the Related Project dated November 1, 1996.  ("Related
Project Agreement").

         F. In  connection  with the  operation  of the  Television  System  and
Telephone  System at the Project,  Lessor desires to lease a certain  portion of
the Project to Lessee and to grant Lessee  certain  other rights as set forth in
this  Agreement  and  Lessee  desires  to lease the  identified  portion  of the
Project, accept the

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other  rights with  respect to the  Project as  described  herein and  otherwise
perform the obligations of Lessee as set forth in this Agreement.

         In consideration  of the mutual promises  contained below and for other
good and valuable consideration, it is hereby agreed as follows:

                                                             Article 1
                                                      Premises; Utility Areas

1.1  Premises.  Lessor  hereby  leases to Lessee and Lessee  hereby  leases from
Lessor the portion of the Project  which is  described  on Exhibit "B"  attached
hereto  and  incorporated  he-rein  by this  reference.  Such area is  sometimes
referred to herein as the "Premises." The Premises is to be used for the purpose
of  installing,  operating,  servicing and  repairing the private  telephone and
television utilities and equipment described on Exhibits "C" and "C-1" (referred
to collectively as the "Telephone and Television  Equipment").  The equipment as
described on Exhibit "C" relating to the  Television  System shall  sometimes be
referred to as the "Television Equipment" and the equipment described on Exhibit
"C-1"  relating to the  Telephone  System shall  sometimes be referred to as the
"Telephone Equipment".

         In addition to the Telephone and Television  Equipment installed in the
Premises,  certain equipment relating to the Television System and the Telephone
System at the Project is  installed in an area of the Related  Project  commonly
known as the "Telephone and Television  Equipment Room" ("Equipment  Room"). The
equipment  installed in the  Equipment  Room in connection  with the  Television
System  servicing  the  Project  is  sometimes  referred  to  as  the  "Off-site
Television  Equipment".  The equipment installed in the Equipment Room servicing
the  Telephone  System at the Project is sometimes  referred to as the "Off-site
Telephone Equipment".  Certain other additional equipment employed in connection
with the Television  System and/or Telephone System at the Project is located on
the Related Project including without limitation  certain  television  satellite
dishes.

1.2  Utility  Areas.  In addition to the lease of the  Premises,  Lessor  hereby
grants to Lessee  nonexclusive  access to the areas  marked on Exhibit  "D" (the
"Utility  Areas") for the placement and repair of wires,  cable and  accessories
necessary to provide the telephone and television  services as described in this
Agreement.  Lessee  shall have the right of free access to the Utility  Areas to
inspect,  maintain,  install,  replace  and  repair  the  wire,  cable and other
accessories  associated with the Telephone System and the Television System, and
to the remainder of the Project for the purpose of repair and maintenance of the
wiring,  cable  and  accessories  relating  to  the  Telephone  System  and  the
Television System,  and for the purpose of collecting  receipts for its services
and otherwise  dealing with tenants within the Project.  The access of Lessee to
the apartment  units in the Project shall be restricted to normal business hours
after  reasonable  notice (except by appointment  for after business  hours) and
such  other  restrictions  as are from time to time  reasonably  imposed  by the
Lessor or its designated agents.

                                                                       Article 2
                                                                            Term

2.1 Term. The term of this Agreement shall commence as of the Effective Date and
shall  expire  on  December  31,  2005 and shall not be  earlier  terminated  or
cancelled except as hereinafter  provided.  It is acknowledged that although the
term of this  Agreement  commences  as of the  Effective  Date,  delivery of The
Premises  by Lessor to Lessee and the  commencement  of  telephone  service  and
television  service with respect to the Project as contemplated  pursuant to the
provisions of this Agreement will not occur until  completion of construction of
the Project. It is currently contemplated that completion of construction of

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the Project  will occur on or about  February  28,  1997.  Lessor  shall have no
responsibility   or  liability  to  Lessee  in  the  event  that  completion  of
construction of the Project is delayed for any reason whatsoever and the term of
this  Agreement  shall not be extended as a result of any delay in completion of
construction but in all events shall expire on December 31, 2005.

                                                             Article 3
                                                         Exclusive Control

3.1  Exclusive  Right . Lessee  shall have the sole and  exclusive  control  and
possession  of the Premises and the  exclusive  right to provide  telephone  and
television service to all residents within the boundaries of the Project. Lessor
shall not  install  or use,  nor  permit  any  tenant or other  person,  firm or
corporation to install or use any equipment  similar to or intended for the same
use as the Telephone and Television Equipment (whether coin. operated or not) in
the  Premises or elsewhere  on the  Project.  During the term of the  Agreement,
Lessee shall have the  exclusive  right to install  equipment  for telephone and
television  purposes on or about the Project.  Notwithstanding any provisions to
the contrary  contained in this  Agreement,  including  without  limitation  the
provisions  set forth in this  paragraph  3.1,  Lessor shall be entitled to make
available to tenants of the Project alternate  telephone and television services
to the extent required by applicable law. It is acknowledged that applicable law
currently  requires  that  alternate  telephone  services be made  available  to
tenants of the Project.

3.2  Condition  of Premises.  Lessee has reviewed the  condition of the Premises
existing  as of the  Effective  Date and has  further  reviewed  the plans  with
respect to completion of construction of the Premises. Lessee hereby accepts the
Premises  subject to  completion  in accordance  with the  applicable  plans and
further  subject to all  applicable  zoning,  municipal,  county and state laws,
ordinances or regulations governing the use of the Premises.

3.3 Access Fee. Upon execution of this Agreement and as a condition precedent to
the  effectiveness  of this  Agreement,  Lessee  shall pay to Lessor as a fee in
connection  with the access and other rights  provided in this Agreement for the
benefit of Lessee the sum of  $100,000.  This fee shall be  unconditionally  and
absolutely  earned upon  execution  of this  Agreement  by Lessor and Lessee and
shall  be  unconditionally  payable  to  Lessor  The  fee  shall  be paid in the
following installments: (i) $50,000 in immediately available funds to be paid on
January 15, 1997;  (ii) the balance of $50,000  shall be payable in  immediately
available  funds within  fourteen (14) days  following  written  notice given by
Lessor to Lessee  that the  occupancy  rate in  connection  with the Project has
achieved a minimum of 65%.

                                                                       Article 4
                                                                            Rent

4.1  Rent.  Lessee  shall  pay  to  Lessor  as  rent  for  the  Premises  and as
consideration  for the other  rights as  granted  to  Lessee  hereunder  monthly
payments as scheduled on Exhibit "E" of a  percentage  of the gross  receipts of
Lessee from time to time in connection  with both the Television  System and the
Telephone  System  which  percentages  vary in  accordance  with the  number  of
subscribers  within the Project using the  Television  System  and/or  Telephone
System.  Monthly  payments  shall be paid in  arrears  and are due ten (10) days
following the closing of each monthly  billing cycle which closing occurs at the
end of each calendar month.  Lessee shall pay to Lessor a late charge of one and
one-half  percent (1.5%) of the amount due for any monthly  payment not received
within five (5) business  days of the due date.  Lessee shall provide to Lessor,
along  with  the  monthly  rental  payment,  a  report  showing  the  number  of
subscribers  and  gross  monthly  receipts  for both the  Telephone  System  and
Television System.

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4.2 Audit.  Lessor shall have the right to audit Lessee's gross receipts no more
frequently  than  twice in any twelve  (12) month  period in order to verify the
amount of gross receipts.  Lessee shall cooperate with Lessor in connection with
any audit of its  receipts and shall make  available to Lessor such  information
and records as are reasonably requested by Lessor. If any audit shows that there
is a  deficiency  in the payment of rent,  the  deficiency  shall become due and
payable fifteen (15) days following written demand from Lessor, accompanied by a
statement showing the amount due. The costs of any audit shall be paid by Lessor
unless the audit discloses that Lessee shall have understated its gross receipts
by three percent (3%) or more, in which case Lessee shall pay all Lessor's costs
of the audit.  Further,  notwithstanding  the above provisions of this paragraph
4.2 to the  contrary,  in the event any audit  discloses  that Lessee shall have
understated  its gross receipts by three percent (3 %) or more,  Lessor shall be
entitled  to audit  Lessee's  gross  receipts  as often as four (4) times in the
ensuing  twelve (12) month period.  If any two (2) audits during any twelve (12)
month period  disclose that Lessee has understated its receipts by three percent
(3%) or more, Lessor may terminate this Agreement and Lessee shall remain liable
for the  deficiency  and cost of audit as herein  provided.  The  acceptance  by
Lessor of any monies paid to Lessor by Lessee as rent hereunder, as shown on any
statement furnished by Lessee, shall not be an admission of the accuracy of such
statement or the sufficiency of the amount paid by Lessee.

4.3 Receipts.  The term "gross receipts" as used herein shall refer to the gross
amount as received from time to time by Lessee in connection with or relating in
any fashion to the operation of the Telephone  System and  Television  System at
the Project.  Such receipts shall include but not be limited to: (i) all monthly
fees as paid by tenants of the Project in connection  with the Telephone  System
and the Television System; (ii) all "hook-up" charges or other like charges paid
by the tenants of the  Project;  (iii) all late charges or penalties of any kind
as paid by the tenants of the  Project;  and (iv) any and all other  receipts or
charges of any kind whatsoever  received by Lessee relating to or arising out of
the Telephone System and/or Television System at the Project.  In the event that
Lessee is no longer  providing  services in connection with either the Telephone
System or Television  System pursuant to this Agreement,  then "gross  receipts"
thereafter  shall refer only to the system for which Lessee continues to provide
services.

4.4 Taxes.  Lessee  shall have the right to deduct from the gross  receipts  all
taxes (except income or other like taxes upon Lessee's net income or profit) and
fees imposed on the  Telephone  System or  Television  System and on the revenue
generated by the Telephone System or Television System at the Project.

                                                                       Article 5
                                                                           Taxes

5.1 Real Property  Taxes.  Lessor shall pay any and all real property  taxes
associated  with the Premises or otherwise  associated with the Project. Lessee
shall have no responsibility for any such taxes.

5.2  Personal   Property.   Lessee  shall  pay  before  delinquency  all  taxes,
assessments,  license fees and public charges levied, assessed or imposed on its
business  operation as well as upon all trade fixtures,  leasehold  improvements
and other  personal  property in or about the Premises  and the Project.  Lessee
shall  comply  with the  provisions  of any  law,  ordinance  or rule of  taxing
authorities  which requires Lessee to file a report of Lessee's property located
at the Project.

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                                                                       Article 6
                                                                             Use

6.1  Purpose.  Lessee  shall use the Premises and shall employ its access to the
Project solely in connection  with the purposes  contemplated  by this Agreement
and for no other purpose. During the term hereof, Lessee shall keep the Premises
clean and free of any objectionable noises, odors or nuisances, and Lessee shall
at all times comply with any and all health and police regulations applicable to
the  Premises.  Lessee  shall not  install  any  exterior  lighting  or make any
exterior  painting  or  install  any  exterior  radio  or  television  antennae,
loudspeakers  or similar devices on the exterior of the Premises or elsewhere in
the  Project,  or make any  changes  on the  exterior  of the  Premises  without
Lessor's prior written consent.

6.2 Restrictions.  Lessee shall not do or permit anything to be done in or about
the  Premises  which will in any way  obstruct or  interfere  with the rights of
other  tenants or occupants  of the  Project,  or injure or annoy them or use or
allow the Premises to be used for any  unlawful or  objectionable  purpose,  nor
shall Lessee cause, maintain or permit any nuisance in, on or about the Premises
or the Project.  Lessee shall not commit or suffer to be committed  any waste in
or upon the Premises or the Project. Lessee shall not use the Premises or permit
anything  to be done in or about the  Premises  or Project  that will in any way
violate any law,  statute,  ordinance  or  governmental  rule or  regulation  or
requirement of duly  constituted  public  authorities  now in force or which may
hereafter  be  enacted.  Lessee  agrees  that it shall  comply with all fire and
security  regulations  that  may be  issued  from  time to time by  governmental
authorities  and shall  provide  Lessor with a name of a designated  responsible
employee to represent Lessee in all matters  pertaining to such fire or security
regulations.  Lessee shall at its sole cost and expense  determine  from time to
time, whether it is in compliance with the foregoing, shall obtain all necessary
governmental  approvals and permits,  and shall  promptly  comply with all laws,
statutes, ordinances and governmental rules, regulations and requirements now in
force or which may hereafter be in force, and with the requirements of any board
of fire underwriters or other similar body now or hereafter constituted relating
to or affecting  the  condition,  use or occupancy  of the  Premises,  excluding
structural changes not relating to or affecting the condition,  use or occupancy
of the Premises.

6.3 Hazardous Material.  Lessee shall not cause or permit any hazardous material
to be brought upon, kept or used on or about the Premises or Project.  If Lessee
breaches its  obligations  as stated in the  preceding  sentence and such breach
results in  contamination  of the  Premises  or  Project  or any  portion of the
Project by  hazardous  material,  then Lessee shall  indemnify,  defend and hold
Lessor harmless from all claims, judgments,  damages, penalties,  liabilities or
losses of any kind whatsoever  (including  without  limitation  attorneys' fees)
which arise  during or after the term of this  Agreement  as the result of or in
connection with such  contamination.  The obligations of Lessee  hereunder shall
survive the termination of this Agreement.  As used herein,  the term "hazardous
material" means any hazardous or toxic substance,  material or waste which is or
becomes regulated or defined as "hazardous" or "toxic" by any local governmental
authority, the State of California or the United States Government.

                                                             Article 7

                                                                       Utilities

7.1  Availability.  Lessor  agrees  that it will cause to be made  available  to
Lessee in connection with the Premises the  distribution of utilities  including
electricity,  air  conditioning,  venting and ventilation  substantially as such
utilities  exist with respect to the Premises as of the Effective Date. The cost
of any and all  utilities as provided to the Premises  shall be borne by Lessor,
provided  that to the  extent  that  electricity  provided  to the  Premises  is
separately metered; the cost of the electricity shall be borne by Lessee.

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7.2  Trash.  Lessee  shall  store  all  trash and  garbage  within  the areas as
established  by Lessor for such  purposes  within the Project.  Lessee shall not
allow refuse, garbage or trash to accumulate outside the Premises.

7.3 Limited Liability.  Lessor shall not be liable to Lessee or any other person
for, and neither  shall Lessee nor any other person be entitled to any abatement
or reduction of rent or damages, direct or indirect, because of any reduction or
suspension in the utility services if required by any  governmental,  authority,
or Lessor's failure or inability to furnish any service or facility,  Lessor has
agreed to supply,  when such failure is caused by accident,  breakage,  repairs,
alterations or improvements,  strikes, acts of God,  governmental  preemption or
any other cause similar or dissimilar  beyond the reasonable  control of Lessor.
Lessor shall not be liable under any circumstances for any loss of or any injury
to person,  property or business,  however  occurring,  through or in connection
with or  incidental  to any  failure  described  above to furnish any service or
facility, nor shall any such failure be construed as eviction of Lessee in whole
or in part.

                                                             Article 3

                                                                         Repairs

8.1  Repair  by  Lessee.   Lessee  will  at  its  cost  provide  janitorial  and
housekeeping services, maintenance and repair for the Premises, and will perform
all  future  improvements  at  its  sole  cost.   Notwithstanding  the  sentence
immediately  above, the obligation of Lessee to repair and maintain the Premises
shall be limited to  maintenance  and repair of the interior of the Premises and
shall not include the roof, exterior walls or structural aspects of the Premises
except in the event  that any such  damage  is  caused  by or  results  from the
negligence of Lessee or its agents or employees,  in which event Lessee shall be
obligated to make such repairs. In addition,  Lessee shall have no obligation to
replace the Premises  (exclusive of the Telephone and  Television  Equipment) in
the event of partial or complete destruction of the Premises.

         In addition to the above,  Lessee shall at its cost maintain and repair
any and all HVAC equipment servicing the Premises,  provided that such equipment
serves only the Premises and not other portions of the Project. To the extent of
any warranty on HVAC equipment serving only the Premises, Lessor shall cooperate
with Lessee to enforce  the  warranty  obligations  of the  manufacturer  and/or
installer.

8.2 Repair by Lessor. Subject to reasonable wear and tear and Lessee's duties to
repair the  Premises as set forth in this  Article,  Lessor  shall  maintain and
repair the  exterior  walls,  roof and the  exterior  portions of the  Premises.
Lessor  shall in  addition  be  responsible  for the  repair of any and all HVAC
equipment relating to the Premises except as otherwise provided in paragraph 8.1
and  except  in  connection  with  any  matters  caused  or  resulting  from the
negligence of Lessee or its employees or agents,  in which event Lessee shall be
obligated to make such repairs.

8.3 Removal upon  Termination.  Upon  expiration  or early  termination  of this
Agreement, Lessee shall have the right to remove the Telephone and/or Television
Equipment and fixtures as shall have been  installed,  furnished and supplied by
Lessee in said leased  Premises  subject to the  provisions  of  paragraph  12.4
below,  it being expressly  understood and  acknowledged by Lessor that title to
and the ownership of all such  equipment and fixtures  shall at all times be and
remain in and with Lessee,  whether the same or any parts  thereof be affixed to
the realty or otherwise. Lessee shall repair any damage caused by the removal of
its equipment and fixtures,  including  replacement  of  landscaping  removed or
damaged by Lessee. Under no circumstances shall Lessee remove wire in the walls,
jacks  in  buildings  or any  underground  wire or  cable.  In  addition,  in no
circumstances  shall  Lessee  remove  any  of  the  cabling,  including  without
limitation,  approximately  600 pairs of telephone  lines and one (1) television
cable

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running  between  the  Equipment  Room  located in the  Related  Project and the
Premises which cabling is owned by Lessor. Further, upon the expiration or early
termination of this  Agreement,  Lessee shall be entitled to remove the Off-site
Television  Equipment  and  the  Off-site  Telephone  Equipment  subject  to the
provisions of paragraph 12.4 below and further subject to the provisions of this
paragraph 8.3 otherwise  applicable  to removal of Telephone  and/or  Television
Equipment located in the Premises.

8.4 Liens.  Lessee shall keep the Project and Premises and building in which the
Premises is located free from any liens arising out of work performed, materials
furnished or obligations incurred by Lessee, and shall protect,  indemnify, hold
harmless  and defend  Lessor from any liens or  encumbrances  arising out of any
work performed by Lessee or at its direction.

                                                             Article 9
                                                          Duties of Lessee

9.1  Installation.  It is  acknowledged  that  Lessee  has  participated  in the
installation of the Television  Equipment and Telephone  Equipment  described on
Exhibits  "C"  and  "C-1 "  respectively  together  with  wire  and  accessories
necessary to provide  Telephone and Television  services for the Project.  It is
acknowledged  that Lessor has installed  certain wiring and cable at the Project
in connection with the Telephone System and the Television System.

9.2  Maintenance.  Lessee shall  service and maintain in good working  order all
Telephone and Television  Equipment (as well as the Off-site Telephone Equipment
and  Off-site  Television  Equipment)  and all  wiring,  cable and  accessories,
whether  installed by Lessor or Lessee,  constituting a portion of the Telephone
System and/or Television System at its sole cost and expense.  Lessor shall have
no  obligation of any-kind  whatsoever  for  maintenance  and-repair of any such
equipment  or any  portions  of either the  Telephone  System or the  Television
System. In no event shall Lessor have any responsibility for any of the costs of
such repair and maintenance.  In the event of damage to any of the Telephone and
Television Equipment (or the Off-site Telephone Equipment or Off-site Television
Equipment)  or any of the wiring,  cable or  accessories  employed in connection
with the Telephone  System or Television  System arising by reason of a casualty
or damage or destruction,  Lessee shall be obligated at its sole cost to replace
and/or repair such damaged equipment,  wiring,  cable or accessories;  provided,
only  that any such  damage  resulting  from the  negligence  of  Lessor  or its
employees  or agents  shall be the  responsibility  of Lessor.  Lessee  shall be
entitled to employ and shall employ any and all proceeds  payable in  connection
with insurance  maintained  pursuant to this  Agreement  available in connection
with the damage or destruction of any of the Telephone and Television  Equipment
or any of the wiring,  cabling or accessories  as described  above to offset the
cost of repair and/or replacement of such equipment and/or accessories.

9.3 Tenant  Installation.  Lessee  shall  service and  actively  market both the
Television  System and the Telephone  System to all tenants  within the Project.
Lessee shall provide at its sole cost, all installation  services required as to
each tenant  within the Project and all  accessories  as required in  connection
with the "hook-up" of each of the tenants within the Project. Lessee at its sole
cost shall respond to any and all reasonable  inquiries or  requirements  of the
tenants within the Project relating to the Telephone System or Television System
and shall respond within  twenty-four  (24) hours of notification to all service
calls,  excluding Sundays and national holidays, in which case response shall be
made on the immediately succeeding business day.

9.4 Charges:  Lessee at its sole cost shall be  responsible  for billing all
tenants within the Project for Telephone and Television services provided and
for collecting all monies due in connection with such

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services.  Lessor shall have no  responsibility  of any kind  whatsoever for the
obligations of any tenant in connection with either the Telephone  System or the
Television System.

9.5 Insurance.  Lessee shall maintain at its cost liability  insurance  covering
injury to persons and damage to property (including without limitation damage to
the Telephone and Television  Equipment and to the Off-site Telephone  Equipment
and Off-site Television  Equipment) arising out of its operation on the
Project.
Lessor  shall be named as an  additional  insured  in  connection  with all such
insurance.  A listing of minimum insurance  requirements is contained in Exhibit
"F" and incorporated herein by this reference.

9.6 House Phones. At no cost to Lessor, Lessee shall install and "hook-up" as An
accommodation to Lessor service for seven (7) "house" telephones and for two (2)
common area  television  outlets in locations  within the Project as selected by
Lessor.  In connection with any such services,  Lessor shall not be obligated to
pay the basic monthly fees in connection with either the telephone or television
service so  installed.  Lessor shall be  obligated to pay for any  extraordinary
television  service as used by Lessor and shall  further be obligated to pay the
standard usage cost for the telephone services employed by Lessor.

9.7  Best  Efforts.  Lessee  shall  use  its  best  efforts  in  performing  the
obligations of Lessee under this Agreement,  as modified or amended from time to
time.  Without  limiting the generality of the  foregoing,  Lessee shall use its
best  efforts  to  promptly  discharge  the  service  obligations  specified  in
paragraph 9.3 above of this Agreement.

9.8 Monthly Report.  On or before the tenth day of each calendar  month,  Lessee
shall submit a written report to Lessor  summarizing  such information as may be
reasonably  requested  by Lessor for the prior month.  The monthly  report to be
submitted by Lessee shall include,  but not by way of  limitation,  a summary of
any   problem   areas  then   existing   in   connection   with  the   Telephone
System/Television  System as well as a summary of the solutions achieved for the
problem areas  summarized in connection with the previous  months.  In the event
that Lessor requires  information  other than that then customarily  provided in
connection with such monthly report by Lessee,  Lessor shall give written notice
of a request for  additional  information to Lessee on or before the last day of
the calendar month for which the information is being requested by Lessor.

9.9  BI-Annual  Reports.  In  February  of each  year,  Lessee  shall  deliver a
questionnaire  to fifty  percent  (50%) of the  residents  of the Project and in
August of each year, Lessee shall deliver a questionnaire to the remaining fifty
percent  (50%) of the  residents  of the Project.  Lessee shall obtain  Lessor's
approval  regarding the form of the  questionnaire  prior to distribution of the
questionnaire to the residents.  Based upon the responses to such questionnaires
received  by Lessee,  on or before the tenth day of April and of October of each
year,  Lessee shall submit a report to Lessor in connection with the Project for
the six (6) month  period  prior to the date of such report  setting  forth such
information as may be reasonably requested by Lessor from time to time including
without limitation the results of the questionnaires returned by residents and a
rate  comparison  between  Lessee's  rates and the rates of AT&T and PacBell (or
their  respective  successors)  for  two  local  locations,  two  long  distance
locations and two  international  locations  chosen at random by Lessor.  Lessor
shall give written notice to Lessee of any  information  reasonably  required by
Lessor in connection  with the  above-described  BI-annual  reports which notice
shall be  given  by  Lessor  to  Lessee,  if at all,  on or  before  March 15 or
September 15 of each year.

[GRAPHIC OMITTED][GRAPHIC OMITTED]

<PAGE>

                                                             Article 10
                                                          Entry by Lessor

10.1 Access.  Lessee  hereby  grants Lessor such licenses and access in and over
the Premises or any portion  thereof or the Utility Areas as shall be reasonably
required for the installation or maintenance of mains, conduits,  pipes or other
facilities to serve the Project or any part thereof,  provided that Lessor shall
pay for any alteration required of the Premises as the result of any such use of
the Premises.  Lessee  further  covenants and agrees that Lessor may go upon the
Premises to make any necessary  repairs to the Premises or perform any work upon
the  Premises  which  may be  necessary  to  comply  with  any  laws,  rules  or
regulations  of any public  authority,  or which  Lessor may deem  necessary  to
prevent waste or  deterioration  in connection with the Premises.  Except in the
case of emergency repairs, Lessor shall give Lessee twenty-four (24) hours prior
written notice of any intended entry by Lessor into the Premises for purposes of
repairs or performance of any work.

                                                             Article 11
                                                       Voluntary Termination

11.1 Notice of Termination. Within sixty (60) days following the commencement of
each six (6) month period during the term of this Agreement commencing as to the
Telephone  System with the six month .period  commencing with the calendar month
immediately  following  the  first  calendar  month in which at least an  eighty
percent  (80%)  penetration  of the  apartment  units  in the  Project  is first
achieved  and with  respect to the  Television  System with the six month period
commencing with the calendar month  immediately  following the calendar month in
which at least a sixty percent (60%)  penetration of the apartment  units in the
Project is first achieved,  Lessee shall have the options to terminate by giving
written  notice,  within  such  sixty  (60) days to Lessor as more  particularly
provided  below in this  paragraph  11.1.  Notice to terminate  must be given by
Lessee, if at all, within the applicable sixty (60) day period.  The computation
of the above  described  time period shall be made  separately for the Telephone
System and separately for the Television System.

         (a) Subject to the  sixty-day  time  periods as  described  immediately
above in this  paragraph,  in the event that Lessee fails to maintain an average
telephone  subscription level during the two (2) immediately  preceding calendar
months of an at least eighty percent (80%) penetration of the apartment units in
the Project,  then Lessee shall be entitled to give Lessor written notice of its
intent to terminate its  obligations  pursuant to this  Agreement to provide the
Telephone System for the Project. The effective date of the termination shall be
as provided  in the notice but no earlier  than one  hundred  eighty  (180) days
after the date of receipt by Lessor of such written notice.

         (b) Subject to the time periods as described  immediately above in this
paragraph,  in the event that Lessee  fails to  maintain  an average  television
subscription  level during the two (2) immediately  preceding calendar months of
an at least  sixty  percent  (60%)  penetration  of the  apartment  units in the
Project,  then Lessee  shall be entitled  to give Lessor  written  notice of its
intent to terminate its  obligations  pursuant to this  Agreement to provide the
Television  System for the Project.  The effective date of the termination shall
be as provided in the notice but no earlier  than one hundred  eighty (180) days
after the date of receipt by Lessor of such written notice.

11.2 Removal of  Equipment.  In the event that Lessee  terminates  either of its
services  with respect to 'he  Telephone  System or its services with respect to
the  Television  System in accordance  with  paragraph 11. 1 immediately  above,
Lessee shall have thirty (30) days to remove its equipment  associated  with the
terminated  service,  beginning  with  the  effective  date of the  termination;
provided, however, that any

<PAGE>

equipment not so removed thirty (30) days after the date of termination  for the
terminated  service  shall be deemed to be  abandoned.  Lessee  will  repair any
damages to the Premises caused by removal of its equipment.  The equipment to be
removed in connection with the termination of the Telephone System or Television
System shall  include the Off-site  Telephone  Equipment or Off-site  Television
Equipment as the case may be.

11.3 Lessee  Cooperation.  In the event that Lessee  terminates its  obligations
with respect to either the Television  System or Telephone  System in accordance
with paragraph 11. 1 immediately above, Lessee shall upon the request of Lessor,
during  the  ninety  (90)  days  prior  to the  effective  date of  termination,
negotiate  in good faith with Lessor for the sale to Lessor or its  designees of
the Telephone  Equipment  and/or  Television  Equipment (as well as the Off-site
Telephone  Equipment and/or the Off-site  Television  Equipment) as the case may
be, relating to the terminated service, which sale shall be made on a cash basis
for a price equal to the fair market value of the equipment  being sold.  Should
Lessor and Lessee be unable to agree upon a fair market value for the equipment,
then Lessee shall be entitled to remove such  equipment in  accordance  with the
provisions of paragraph 11.2 immediately above. In the event of any such removal
of equipment,  Lessee shall  cooperate  with Lessor in connection  with Lessor's
efforts  to  obtain  a  third-party  provider  to  furnish  the  services  being
terminated  by Lessee.  Such  cooperation  shall  include  but not be limited to
making space  available  prior to the effective date of termination to the third
party provider within the Premises so that the third-party  provider can install
equipment  as  required  to provide  the  services  effective  as of the date of
termination.

11.4  Non-Terminated  Service.  Pursuant to  paragraph  11.1  above,  Lessee may
terminate one without the other of the services  provided under this  Agreement.
For example, if Lessee notifies Lessor of its intent to terminate the Television
System but not the Telephone System,  then this Agreement shall remain in effect
only with respect to the  Telephone  System  being,  provided by Lessee.  To the
extent  required in  connection  with the removal of  equipment by reason of the
termination  of the  Television  System or the  Telephone  a System,  Lessor and
Lessee agree to execute an amendment to this  Agreement  that will provide a new
description of the Premises as shown on Exhibit "B."

11.5  Lease  Termination.  In the event  that  Lessee  elects to  terminate  its
obligations with respect to either the Telephone System or the Television System
as provided in subparagraph 11.1(a) and subparagraph 11.1(b), respectively, then
in such event,  Lessor  shall be entitled to  terminate  this  Agreement  in its
entirety by giving  written  notice of such  termination to Lessee within ninety
(90) days  following  receipt by Lessor of written  notice of  termination  from
Lessee.  Any such termination shall be effective thirty (30) days after the date
of receipt by Lessee of such written notice.

11.6 Additional Termination Right. Notwithstanding any provision to the contrary
contained in this  Agreement,  upon the sale or exchange of the Project,  Lessor
(or its  successor in interest as more  particularly  described  below) shall be
entitled to terminate  this  Agreement by giving  written  notice  ("Termination
Notice") to Lessee. The effective date of any such termination shall be the date
set forth in the Termination  Notice provided,  however,  that in no event shall
such  date be less  than  sixty  (60)  days  following  the  date on  which  the
Termination Notice is given. In the event of any such termination, provided that
Lessee  is not  otherwise  in  default  pursuant  to this  Agreement,  upon  the
effective  date  of  such  termination  Lessor  shall  pay to  Lessee  in cash a
termination fee in the amount set forth on Exhibit "G" attached hereto. Pursuant
to provisions of this paragraph 11.6, Lessor shall be entitled to terminate this
Agreement with respect to either the Telephone  System or the Television  System
or both. In the event of the  termination of this Agreement only with respect to
one (but not both) of the Telephone  System or the  Television  System then this
Agreement  shall  continue  with  respect  to that  system  not  terminated  and
following the effective  date of the  termination  the rent payable by Lessee as
provided in paragraph 4.1

<PAGE>

shall be based upon the percentage of gross receipts as set forth on Exhibit "E"
in  connection  with  the  system  not  then  terminated.  In the  event  of the
termination of either the Telephone System or the Television System as described
in this paragraph  11.6,  but not both, the above  described fee as set forth on
Exhibit  "G"  shall be  reduced  as  applicable  such  that the fee  payable  in
connection  with the  termination of the Telephone  System shall be seventy-five
percent  (75%) of the  total  fee and the fee  payable  in  connection  with the
Television  System shall be  twenty-five  percent (25%) of the total  applicable
fee. In the event of any termination by Lessor of the,  Telephone  System or the
Television  System or both as provided in this paragraph 11.6, the provisions of
paragraphs  11.2 and 11.3 shall be  applicable  with respect to the equipment of
the  terminated  system and Lessee  shall have  thirty (30) days  following  the
effective date of termination to remove the applicable  equipment as provided in
paragraph  11.2 subject  however to the provisions of paragraph 11.3 pursuant to
which  provisions  Lessor and Lessee,  during the sixty (60) day period prior to
the effective date of termination, shall negotiate in good faith with respect to
the purchase and sale of the Telephone  Equipment  and/or  Television  Equipment
relating to the  terminated  service(s).  The right to terminate as set forth in
this  paragraph  11.6,  shall  inure to the  benefit  of Lessor  and  shall,  in
addition, inure to the benefit of  successors-in-interest  to Lessor pursuant to
this   Agreement  who   hereafter   purchase  the  Project  from  Lessor  (or  a
successor-in-interest  to Lessor)  provided  that  following  such purchase this
Agreement remains in force and effect (and is therefore not terminated  pursuant
to the provisions of the paragraph 11.6).

                                                                      Article 12
                                                                         Default

12.1  Defaults by Lessee.  The  occurrence  of any one or more of the  following
events  shall  constitute  a material  default and breach of this  Agreement  by
Lessee:

         (a) The vacating or abandonment of the Premises by Lessee; or

         (b) The  failure  by  Lessee to make any  payment  of rent or any other
payment  required to be made by Lessee  hereunder,  as and when due,  where such
failure  shall  continue  for a period of three (3) days  after  written  notice
thereof  from Lessor to Lessee.  In the event that Lessor  serves  Lessee with a
Notice to Pay Rent or Quit pursuant to applicable  unlawful  Detainer  statutes,
such Notice to Pay Rent or Quit shall not constitute the notice required by this
subparagraph; or

         (c) The failure by Lessee to observe or perform  any of the  covenants,
conditions  or  provisions  of this  Agreement  to be observed or  performed  by
Lessee,  other than as  described  in  paragraph  (b) above,  where such failure
continues  for a period of thirty (30) days after  written  notice  thereof from
Lessor to Lessee;  provided,  however, that if the nature of Lessee's default is
such that more than thirty (30) days are reasonably  required for its cure, then
Lessee shall not be deemed to be in default if Lessee commences such cure within
said thirty (30) day period and thereafter  diligently  prosecutes  such cure to
completion; or

         (d) The  occurrence  of any two (2) audits during any twelve (12) month
period disclosing that Lessee has understated its receipts by three percent (3%)
or more as described in paragraph 4.2 above; or

         (e) Failure of Lessee to maintain  the  Television  System or Telephone
System in good condition and repair comparable with similar services, where such
failure continues for a period of fifteen (15) days after written notice thereof
from Lessor to Lessee; or

<PAGE>

         (f)  Failure  of Lessee to  provide  telephone  service  or  television
service to residents of the Project comparable with similar services, or to make
service calls upon request in a prompt  fashion as provided  herein,  where such
failure  continues  for a period of five (5) days after written  notice  thereof
from Lessor to Lessee  (provided  that Lessee shall not be entitled to such five
(5) day "cure" period upon the second (2nd) to occur of any such failure  within
any thirty (30) day  period),  except for any  failure  which  results  from the
failure of a tenant to timely pay its bills for telephone or television services
rendered,  destruction of equipment without fault of Lessee (provided,  however,
that such destroyed  equipment is to be promptly replaced and repaired by Lessee
at its cost),  or other  commercially  acceptable  cause  reasonably  beyond the
control of Lessee; or

         (g) Failure of Lessee to provide  telephone or  television  services at
rates equal to or less than those charged by the  applicable  public  utility or
local cable  franchise,  as the case may be, where such failure  continues for a
period of thirty (30) days after written  notice  thereof from Lessor to Lessee;
or

         (h) The filing of a voluntary  petition of  bankruptcy by Lessee or the
filing of an  involuntary  petition by Lessee's  creditors,  with such  petition
remaining undischarged for a period of sixty (60) days; or

         (i) A general assignment by Lessee for the benefit of creditors; or

         (j) An  appointment of a receiver to take  possession of  substantially
all of Lessee's  assets or of the  Premises,  with such  receivership  remaining
undissolved for a period of sixty (60) days; or

         (k)  The   attachment,   execution   or  other   judicial   seizure  of
substantially  all of Lessee's  assets or the  Premises,  with such  attachment,
execution or seizure remaining undismissed for period of sixty (60) days.

12.2  Defaults by Lessor.  The  occurrence  of any one or more of the  following
events  shall  constitute  a material  default and breach of this  Agreement  by
Lessor:

         Failure to perform any of the material  obligations  required of Lessor
to be  performed,  provided  that such failure  continues for a period of thirty
(30) days after written notice thereof from Lessee to Lessor, which notice shall
specify the specific nature of the failure, and further provided,  however, that
if the nature of  Lessor's  default is such that more than  thirty  (30) days is
required to cure such  default,  then  Lessor  shall not be in default if Lessor
commences to cure such default within such thirty (30) day period and thereafter
diligently prosecutes the same to completion.

12.3 Remedies upon Default by Lessee. In the event of default by Lessee, the
following shall be applicable:

         (a) In addition to any and all other rights and  remedies  available to
Lessor at law or in equity, Lessor shall have the right to immediately terminate
this Agreement and all access rights and other rights of the Lessee hereunder by
giving  written  notice to Lessee of such  election by Lessor.  If Lessor  shall
elect to terminate this  Agreement,  then it may recover the amounts from Lessee
as are provided by applicable California law.

         (b) In the event of  default  by  Lessee,  Lessor  shall  also have the
right, with or without Terminating this Agreement,  to re-enter the Premises. If
Lessor does not elect to terminate this Agreement, Lessor may either recover all
rent as it becomes due or re-let the Premises,  together with all access rights,
upon such  provisions  as Lessor in its sole  judgment may deem  advisable,  and
Lessor shall have the right

<PAGE>

to make repairs to and  alterations to the Premises.  If Lessor elects to re-let
the Premises,  then all rentals  received by Lessor from such a re-letting shall
be  applied  to the  payment  of all costs and  expenses  incurred  by Lessor in
connection  with  such  re-letting  and to the  payment  of rent  due  and  paid
hereunder.

         (c) Nothing  contained in this paragraph 12.3 shall constitute a waiver
of Lessor's rights to recover damages by reason of Lessor's  efforts to mitigate
damages caused by Lessee's default.

12.4 Removal of Equipment.  In the event of a termination  of this  Agreement by
Lessor  resulting from the default of Lessee,  Lessee,  at its cost,  shall have
thirty (30) days from the date of  termination  in which to remove the Telephone
Equipment  and the  Television  Equipment  (as  well as the  Off-site  Telephone
Equipment and Off-site  Television  Equipment);  provided,  however,  that in no
event shall Lessee remove any wiring,  cabling or  accessories  installed in the
Project.  Notwithstanding  the above,  at the  election  of Lessor  and  without
waiving Lessor's election to terminate this Agreement,  Lessor shall be entitled
to require  Lessee to give Lessor  fifteen (15) days prior written notice of its
intent to remove the Television Equipment and/or the Telephone Equipment. During
such  fifteen  (15) day term,  Lessee  shall  cooperate  with  such  third-party
providers as may be selected by Lessor so as to allow such third-party providers
to  provide  to the  Project  substitute  telephone  service  and/or  substitute
television  service.  Such  cooperation  shall  include  but not be  limited  to
cooperation  in connection  with the placement by  third-party  providers of new
equipment within the Premises and the Equipment Room. In addition, to the extent
that Lessor elects to do so, Lessee shall  negotiate in good faith following any
notice of termination  given by Lessor, in order to arrive at an a agreement for
purchase  at fair  market  value on a cash  basis  by  Lessor  of the  Telephone
Equipment  and/or the  Television  Equipment as well as the  Off-site  Telephone
Equipment and the Off-site Television Equipment.  Failing any such agreement for
purchase of the  equipment,  Lessee shall continue to be entitled to remove such
equipment in accordance with the provisions hereof from the Premises.

                                                             Article 13
                                                       Damage or Destruction

13.1  Destruction  of Premises Due to Risk Covered by  Insurance.  If during the
term of this  Agreement the Premises are totally or partially  destroyed  from a
risk  covered  by  insurance  in effect at the  time,  and there are  sufficient
insurance  proceeds  to pay in full for the cost of  restoration,  Lessor  shall
restore the Premises to  substantially  the same condition as that which existed
immediately  prior to destruction,  provided that Lessor's  obligation  shall be
limited to the Premises and shall not include either the  Television  Equipment,
or the Telephone  Equipment (or the Off-site Telephone Equipment or the Off-site
Television  Equipment).  Lessee,  at its cost,  shall be required to restore the
Telephone  Equipment and the Television  Equipment  (and the Off-site  Telephone
Equipment and the Off-site  Television  Equipment).  Any such destruction of the
Premises shall not terminate this Agreement.  If the existing laws do not permit
the Premises to be restored to  substantially  the same  condition as that which
existed  immediately  before the  destruction,  or if in the opinion of Lessor's
architect the  restoration  cannot be completed  within one hundred eighty (180)
days from the date of damage or destruction, Lessor may terminate this Agreement
by giving written notice thereof to Lessee.

13.2 Destruction of Premises Due to Risk Not Covered by Insurance. If during the
term of this  Agreement the Premises are totally or partially  destroyed  from a
risk where the cost of  reconstruction  is not fully covered by insurance,  then
Lessor  shall have the  election  to  terminate  this  Agreement  or restore the
Premise's in accordance with the provisions of paragraph 13. 1. If Lessor elects
to restore the  Premises,  .his  Agreement  shall  continue in effect and Lessee
shall have the obligation,  at its cost, to restore the Television Equipment and
the Telephone Equipment.

<PAGE>

13.3 Rent. In the event of any partial destruction of the Premises,  the rent as
provided herein shall continue with no abatement, it being acknowledged that the
rent is based upon a percentage of Lessee's gross receipts only.

13.4 Restoration of Service.  Provided only that the Project in its entirety has
not been substantially destroyed,  Lessee at its cost shall quickly restore both
telephone and television  services to the Project.  Such restoration of services
shall include a temporary restoration of services during the period in which any
destruction of the Premises is being restored by Lessor.

                                                             Article 14
                                                           Miscellaneous

14.1 Indemnity. Lessee shall indemnify and hold Lessor harmless from and against
any loss,  claim,  damage or expense  (including  attorney's fees) in connection
with Lessee's operations at the Project;  provided,  however,  that Lessee shall
have no obligation to indemnify Lessor with respect to any loss,  claim,  damage
or expense  arising in whole or in part by reason of the  negligence  of Lessor,
its employees, agents or representatives.

14.2 Lessor Warranties. Except as specifically set forth herein, Lessor makes no
representations  or warranties of any kind  whatsoever to Lessee in  connection,
with the subject matters as described in this Agreement.  Specifically,  but not
by way of limitation,  Lessor makes no  representations  or warranties as to the
suitability  of the Project for the  purposes as intended by Lessee  pursuant to
the provisions of this Agreement and makes no  representations  or warranties as
to the  profitability  or other success of the services to be provided by Lessee
hereunder.

14.3 Memorandum of Agreement.  Upon the request of either Lessee or Lessor,  the
parties agree to execute 1 memorandum of this  Agreement in recordable  form and
recorded in the Official Records of Contra Costa County, California.  Subject to
the  provisions  of  paragraph  11.6,  this  Agreement  shall  survive any sale,
assignment  or other  transfer  of the  Project  and shall be  construed  in all
respects as a lease and not a license.  In the event of a sale of the Project by
Lessor, Lessor's obligations and liabilities pursuant to this Agreement shall be
limited to those obligations and all liabilities accrued as of the completion of
the sale and' following completion of the sale the purchasing party shall become
the successor  Lessor  pursuant to this  Agreement and the current  Lessor shall
have no further  obligations  or  liabilities  with  respect to this  Agreement.
Lessor  shall use its best  efforts  to obtain  from any  third  party  lender a
nondisturbance  agreement  with respect to this  Agreement in a form  reasonably
satisfactory to both Lessor and Lessee.

14.4 Authority.  The person(s) executing this Agreement  expressly  represent(s)
and warrant(s) that he (they) has (have) full power and authority to do so.

14.5  Assignment.  Lessee may not assign this  Agreement  without the consent of
Lessor,  which shall not be  unreasonably  withheld.  Subject to this provision,
this  Agreement  shall be binding upon the parties  hereto and their  respective
heirs,  successors and assigns,  as the case may be.  Notwithstanding  the above
provisions, Lessee may assign this Agreement to an affiliated entity without the
consent of Lessor.  For purposes  hereof,  an  "affiliated  entity"  shall be an
entity in which Lessee  holds a majority in interest of the equity  ownership as
well as management control.

         Provided  that Lessor has given its consent  which consent shall not be
unreasonably withheld,  Lessee shall be entitled to separately assign its rights
with respect to this Agreement relating to the Television

<PAGE>

System and those rights  relating to the  Telephone  System.  By way of example,
Lessee shall be entitled to assign the rights to the Telephone System to a third
party and retain the rights to the Television  System.  In the event of any such
assignment by Lessee, in connection with the consent to such assignment required
of Lessor,  Lessee  shall  cause to be  prepared  appropriate  documentation  to
reflect the separate assignment of the Telephone System and/or Television System
which documentation shall be in a form reasonably acceptable to Lessor and shall
reflect  the  separate  rights  and  obligations  of the  respective  parties in
connection  with the separate  operation of the Telephone  System and Television
System.

         The  consent of Lessee  shall not be required  in  connection  with any
assignment  by Lessor of this  Agreement  or any one or more of the  rights  and
duties of Lessor  pursuant to this  Agreement.  For  example,  but not by way of
limitation,  Lessor may assign all of its rights and duties under this Agreement
with respect to a portion of the Project,  while retaining all of its rights and
duties under this Agreement with respect to the balance of the Project.

14.6 Other  Agreement.  The  parties  hereby  covenant  and  guarantee  that the
entering  into and  performance  of this  Agreement  will not create a breach or
default in any agreement to which they are a party.

14.7 Attorney's Fees. In the event it becomes  necessary for Lessee or Lessor to
enforce the terms of this Agreement,  the prevailing  party shall be entitled to
reasonable attorney's fees, costs and expenses.

14.8  Condemnation.  In the event of condemnation of the Project or a portion of
the  Project,  or a sale or a transfer  of the Project  under  threat of eminent
domain,  Lessee  shall be entitled to recovery  from any  proceeds  available by
reason of such  eminent  domain  or  condemnation  action  an amount  reasonably
calculated  to reimburse  Lessee for the loss of benefits of this  Agreement (or
portion of this  Agreement)  and for the loss of the investment in the Telephone
Equipment or Television Equipment resulting from such condemnation,  taking into
account the depreciated value of such equipment.

14.9 Severabilitv.  The provisions of this Agreement shall be severable, and the
invalidity or  unenforceability  of any provision shall not affect the remaining
provisions.

14.10 Exhibits.  The provisions of the Exhibits attached hereto and the attached
Addendum are hereby incorporated in this Agreement by this reference.

14.11 Notice. All notices,  requests or demands to a party hereunder shall be in
writing and shall be given or served  upon the other party by personal  service,
by certified return receipt requested or registered mail, postage prepaid, or by
Federal  Express or other  nationally  recognized  commercial  courier,  charges
prepaid, addressed as set forth below. Any such notice, demand, request or other
communication  shall be deemed to have been given upon the  earlier of  personal
delivery  thereof,  three (3) business days after having been mailed as provided
above, or one (1) business day after delivery through a commercial  courier,  is
the case may be.  Notices may be given by facsimile and shall be effective  upon
the  transmission of such facsimile notice provided that the facsimile notice is
transmitted on a business day and a copy of the facsimile  notice  together with
evidence  of its  successful  transmission  indicating  the  date  and  time  of
transmission is sent on the day of transmission by recognized  overnight carrier
for delivery on the  immediately  succeeding  business  day. Each party shall be
entitled to modify its address by notice given in accordance with this Section.

<PAGE>

If to Lessor:                             Crow Canyon Developers, Ltd.
                                          c/o Kajima Development Corporation
                                          901 Corporate Center Drive, Suite 201
                                          Monterey Park, California 91754
                                          Attn: Osamu Ibinuma
                                          Fax No.: 213-262-9104

If to Lessee:                             GRI Telecommunications, Inc.
                                          c/o Gentiurn Realty Investments, Inc.
                                          One Daniel Burnham Court, Suite 205
                                          San Francisco, California 94109
                                          Attn: Bonnie Okamoto
                                          Fax No.: 415.776.4084

14.12 Descriptive  Heading:  The descriptive  headings used and inserted in this
Agreement are for convenience only and shall not be deemed to affect the meaning
or construction of any provision of this Agreement.

14.13 Time. Time is of the essence of this Agreement and each and every
provision hereof.

14.14 California Law. This Agreement shall be governed by and be construed
according to the laws of the State of California.

14.15  Waiver.  No covenant,  term or condition or breach  thereof  shall deemed
waived  except by  written  consent  of the  party  against  whom the  waiver is
claimed,  and any waiver of the breach of any covenant,  term or condition shall
not be  deemed  to be a  waiver  of  any  other  covenant,  term  or  condition.
Acceptance by Lessor of any  performance by Lessee after the time the same shall
have become due shall not constitute a waiver by Lessor of the breach or default
of any  covenant,  term or condition  unless  otherwise  expressly  agreed to by
Lessor in writing.

14.16  Holding Over Period.  If Lessee or anyone  claiming  under Lessee  shall,
without the written consent of Lessor, hold over after the expiration or earlier
termination  of  the  term  of  this   Agreement,   such  tenancy  shall  be  on
month-to-month  tenancy,  which  tenancy may be  terminated  as provided by law.
During such tenancy, tenant agrees to pay to Lessor the rent otherwise agreed to
be paid hereunder plus an additional  amount equal to one hundred percent (100%)
thereof.

14.17 Force Majeure. Any prevention, delay or stoppage due to strikes, lockouts,
labor  disputes,  acts of  God,  inability  to  obtain  labor  or  materials  or
reasonable  substitutes  therefor,   governmental   restrictions,   governmental
regulations,  governmental controls, enemy or hostile governmental action, civil
commotion,  fire or other  casualty,  and other  causes  beyond  the  reasonable
control of the party obligated to perform,  shall excuse the performance by such
party for a period equal to any such prevention,  delay or stoppage,  except the
obligations  imposed  with regard to rent to be paid by Lessee  pursuant to this
Agreement.

14.18 No Partnership.  It is agreed nothing contained in this Agreement shall be
deemed or construed as creating a partnership  or joint venture  between  Lessor
and  Lessee,  or  between  Lessor  and any other  party,  or cause  Lessor to be
responsible  in any way for the debt or  obligations  for  Lessee  or any  other
party.

<PAGE>

14.19 Financing.  Lessor may, from time to time,  obtain financing in connection
with the  Project or  refinance  the  Project by means of a mortgage  or loan or
loans from one or several mortgage companies; before said loans are approved and
closed,  such mortgage company or companies must approve this Agreement,  and in
order to  receive  such  approval,  this  Agreement  may have to be  amended  or
modified.  Provided that the term hereof is not altered and Lessee's obligations
to pay rent are not increased  thereby,  Lessee agrees that it shall consent and
immediately  execute any such amendment or  modification  of this Agreement that
may be requested by Lessor and said mortgage company or companies!  In the event
Lessee so fails to consent to or execute  any such  amendment  or  modification,
Lessor,  at its option,  may cancel and terminate  this Agreement on thirty (30)
days written notice to Lessee without further liability to Lessee hereunder.

14.20 Profit Sharing. Given the very substantial investment being made by Lessor
byway*  of wiring  and  cable  costs  and  other  costs in  connection  with the
operation  of both  the  Telephone  System  and  the  Television  System,  which
investment  in part allows Lessee  pursuant to  provisions of this  Agreement to
participate  in the operation  and benefits of both such systems,  should Lessee
employ in any fashion  whatsoever any of the  facilities,  wiring,  equipment or
other items  installed in or employed in  connection  with either the  Telephone
System or the Television  System at the Project in connection  with an apartment
complex,  office complex or other project other than the Project (or the Related
Project),  then Lessor shall be entitled to fifty  percent  (50%) of the profits
derived by Lessee from any such use. For  purposes  hereof,  the term  "profits"
shall  refer to as  provided  in this  paragraph  14.20  the gross  receipts  as
received by Lessee in connection with any such use less the actual out-of-pocket
costs incurred by Lessee in connection with such use. In any event, Lessee shall
not be entitled to employ any* portion of the Telephone System or the Television
System in any fashion  whatsoever  other than in  connection  with the  Project,
except upon the prior written authorization of Lessor.

14.21 Termination of Prior Agreement.  As a condition of and simultaneously with
execution of this Agreement by Lessor and Lessee,  Lessor and Lessee have agreed
to terminate the Prior Agreement.

14.22  Related  Project  Agreement.  In  accordance  with  the  Related  Project
Agreement,  Lessee will have access to the Equipment Room in connection with the
Off-site Television Equipment and the Offsite Telephone Equipment.  In the event
that  Lessee's  access to the  Equipment  Room by reason of the Related  Project
Agreement is- terminated or partially terminated, then the Lessee shall continue
to have access to the portion of the  Equipment  Room  relating to the Telephone
System  and/or  Television  System  maintained  in  connection  with the Project
pursuant  to certain  rights  retained  by Lessor as the owner of the Project in
connection with the Related Project.  In such event, the "Premises" for purposes
of this  Agreement  shall be  interpreted  to include the Equipment Room or that
portion of the Equipment Room located on the Related Project to which Lessee has
rights to maintain the Off-site Television Equipment and/or Telephone Equipment.
The  obligations  of Lessee with respect to all or such portion of the Equipment
Room shall be the same as the obligations of Lessee with respect to the Premises
pursuant to this Agreement.  By way of example,  but without limitation,  Lessee
shall be required to repair all or the applicable  portion of the Equipment Room
in the same  fashion as Lessee is required to repair the premises as provided in
Article 8 of this Agreement.

14.23 Entire  Agreement This Agreement  along with any Exhibits and  attachments
hereto  constitutes the entire  agreement  between Lessor and Lessee relative to
the Premises and the matters set forth herein,  and this  Agreement and Exhibits
and attachments hereto may be altered,  amended or revoked only by an instrument
in writing signed by both Lessor and Lessee.  It is understood that there are no
oral  agreements or  representations  between the parties hereto  affecting this
Agreement,  and this  Agreement  supersedes  and  cancels  any and all  previous
negotiations, arrangements, brochures, agreements or

<PAGE>

representations  and  understandings,  if any,  between the parties  hereto with
respect to the subject matter as set forth herein.

14.24   Counterparts.   This   Agreement  may  be  executed  in  any  number  of
counter-parts,  each of  which  shall  be  deemed  an  original,  but  all  such
counterparts  together shall  constitute but one and the same  instrument.  This
Agreement shall become  effective upon the execution of a counterpart  hereof by
each of the parties hereto.

Lessor:                                              Lessee:

CROW CANYON DEVELOPERS, LTD.,
a California limited partnership            GRI TELECOMMUNICATIONS, INC.,
                                            a California corporation

By:      Kajima Development Corp.,
         a Delaware corporation
<PAGE>

                              Exhibit A

                   Project Description - Promontory View Apartments

                                Legal Description

         Real Property in the City of San Ramon,  County of Contra Costa,  State
of California, described as follows:

         Parcel 1 as shown on Parcel Map MS 901-89,  filed  March 2, 1992,  Book
158 of Parcel Maps, Page 3,

         Contra Costa County Records.

A.P.-No.: 208-240-050
<PAGE>

image

<PAGE>

                                    Exhibit C

                    Television Equipment - Promontory View Apartments

                                   December 10, 1996

                    One (1) Microwave Dish (Receiver) On Site

                    One (1) Microwave Dish (Receiver) Off Site

<PAGE>

                                      Exhibit C-I

                       Telephone Equipment - Promontory View Apartments

                                    December 10, 1996

                                        None on Site

                       The following are "Off Site" Equipment:
                                  1 Cortelco Cabinet
                                  3 Universal Carriers
                                  2 Power Supplies
                                  42 Station Cards
                                  1 T-I Card
                                    1 CSU/DSU

                                1 Battery Back-up

<PAGE>

                                   Exhibit C-2

                  Related Project Television and Telephone Equipment

Television Equipment:

(Inside Equipment Room)

13 Custom Headend Racks
10 Processors
25 Modulators

20 Integrated Satellite Receiver/Descramblers
2 Satellite Receivers
3 Channel Combiners
2 Demodulators

(Outside Equipment Room)

2 121 Satellite Dish Antennas
1 101 Satellite Dish Antennas
4 Off Air Antennas

Telephone Equipment:

(All inside Equipment Room)

2 Cortelco  SR1000  cabinets 6  universal  carriers 3 Power  Supplies 59 Station
Cards 2 T-1 Cards 1  Battery  Back-up  I WYSE 350  Monitor  I Falling  Unit (for
billing) I Voice Mail System 1 Music-On-Hold System

<PAGE>

                                    Exhibit D

                Description of Utility Areas - Promontory View Apartments

<PAGE>

image

<PAGE>

image

<PAGE>

image

<PAGE>

                                    Exhibit E

                   Rent Schedule Promontory View Apartments

         The  rent  to be  paid  by  Lessee  pursuant  to  Paragraph  4.1 of the
Agreement  shall commence as to each of the Telephone  System and the Television
System at such time as services are being provided with respect to the Telephone
System  or  Television  System,  as the  case may be,  to a  minimum  number  of
subscribers  within the Project as more particularly  described below. Such test
is to apply  separately to the Telephone System and Television  System,  so that
rent with respect to the Telephone System may commence one month , and rent with
respect to the Television System may commence in a different month. If after the
commencement  of rent with  respect to one or both of the  Systems,  the service
level falls below the minimum level,  rent shall thereupon cease with respect to
such  System  until  the  month  in which  the  minimum  service  level is again
satisfied.  For purposes of  determining  when  "service" is being provided to a
given  apartment,  "hook-up" of the System to such apartment shall be considered
as proof of the  commencement of service.  The rent as described herein is based
upon a percentage of the gross receipts with respect to the Telephone System and
the  Television  System.  During any months in which rent is not being paid with
respect to the Telephone System and/or the Television System because the minimum
service level has not been  achieved,  Lessee shall  continue to be obligated to
provide the monthly  reports to Lessor as  described  in  Paragraph  14.1 of the
Agreement.  The  percentage  of the gross  receipts  paid in rent  shall vary in
accordance with the number of subscribers  being serviced as described below. In
determining the level of service with respect to either the Telephone Service or
the Television  Service in any given month, the highest level of service in such
calendar month shall be determinative.

         The percentage of monthly receipts to be paid by Lessee is described as
follows:

[From 11/1/96 through and including 12/31/2002:

                                     Percentage of Gross Monthly Receipts

No. of subscribers

being serviced          Telephone System                  Television System

0-183                        0%                                0%
184-213                      5%                                7%
214-243                      6%                                8%
244-2744,                    7%                                9%
275-306                      8%                                10%
307-                         9%                                11%

[From 1/1/2003 through and including 12/31/2005:

No. of subscribers                 Percentage of Gross Monthly Receipts
being serviced
                         Telephone System                   Television System

0-183                        0%                                 0%
184-213                      6%                                 8%
214-243                      7%                                 9%
244-274                      8%                                 10%
275-306                      9%                                 11%
307-                         10%                                12%

<PAGE>

                            Exhibit F

              Insurance Requirements - Promontory View Apartments

Lessee is required to comply at its cost with the  following  minimum  insurance
requirements:

1. Lessee at its expense  shall  maintain the  hereinafter  described  insurance
cover-age  with insurance  carriers  licensed and approved to do business in the
State of  California  (unless  Lessor  otherwise  approves in  -writing)  with a
general  policyholder's  rating of not less than A, and financial  rating of not
less than X, in the most current Best's Insurance  Report.  In no event will the
insurance be terminated or otherwise  allowed- to lapse prior to the termination
or expiration of the  Agreement.  Lessee may provide the insurance  described in
this Exhibit through a policy or policies  covering other  liabilities of Lessee
provided,  however,  that any such policy or policies shall: (i) allocate to the
Project the full  amount of  insurance  required  hereunder,  and (ii)  contain,
permit or  otherwise  unconditionally  authorize  the waiver of  subrogation  as
described in paragraph 8 below.

2. As evidence of specified insurance coverage,  Lessor shall, in lieu of actual
policies,  accept  certificates  issued  by  the  applicable  insurance  carrier
acceptable to Lessor  showing such  policies in force for the specified  period-
Such  evidence  shall be delivered to Lessor  promptly upon the execution of the
Agreement and prior to the  commencement of any activity of Lessee in connection
with the Project.  Each policy and  certificate  shall be subject to approval of
Lessor and shall  provide that such  Policies  shall not .PC subject to material
alteration or  cancellation  without  thirty (30) days prior  written  notice to
Lessor,  which  notice shall be delivered  by  certified  mail,  return  receipt
requested.  Should any policy  expire or be cancelled  prior to  termination  or
expiration of the Agreement and should Lessee fail to immediately  procure other
insurance as specified,  Lessor shall have the right, but not the obligation, to
procure such her  insurance and charge  Lessee  therefor,  in which event Lessee
shall,  immediately upon written demand from Lessor, pay to Lessor as additional
rent pursuant to the Agreement the sum as advanced by Lessor with respect to the
insurance coverage.

3. Nothing contained in this Amendment or in the Agreement shall be construed to
limit the extent of Lessee's  responsibility  for  payment of damages  resulting
from its  operations  pursuant to the  Agreement  nor shall  anything  contained
herein be deemed to place any  responsibility  an Lessor for  ensuring  that the
insurance  required hereunder be sufficient for the operation of Lessee pursuant
to the Agreement.

4.  Lessee  shall  maintain  full  workman's  compensation  insurance  including
employer's  liability  at a  minimum  limit  of Five  Hundred  Thousand  Dollars
($500,000), or current limit carried, whichever greater, for all persons whom it
employs in carrying out the work pursuant to the Agreement,  including waiver of
subrogation  by the  insurance  carrier  with  respect to Lessor as specified in
paragraph 8 of this Exhibit.  Such insurance shall be in strict  accordance with
the requirements of the most current and applicable state worker's  compensation
insurance laws in effect from time to time.

5.  Lessee  shall  maintain  during the term of this  Agreement  general  public
liability  insurance,  with  coverage  limits not less than One Million  Dollars
($1,000,000) for bodily injury or death to any one person, injury - and/or death
to any number of persons in any one incident, and for property damage in any one
occurrence  in the  aggregate  insuring  against  any and all  liability  of the
insured with respect to the Premises  or-arising out of the Agreement.  All such
insurance  shall name Lessor and its designees as  additional  insureds All such
insurance shall specifically insure for performance by Lessee of the

<PAGE>

                                    Exhibit G

                   Termination Fee* - Promontory View Apartments

The termination  fee payable  pursuant to Section 11.6 shall be determined as of
the effective date of termination in accordance with the following schedule:

        From:

        1/1997-12/1997                                    $200,000
        1/1998-12/1998                                    $200,000
        1/1999-12/1999                                    $160,000
        1/2000-12/2000                                    $120,000
        1/2001-12/2001                                    $80,000
        1/2002-12/2002                                    $40,000
        1/2003-12/2003                                    $10,000
        1/2004-12/2004                                    $10,000
        1/2005-12/2005                                    $10,000

<PAGE>Exhibit # 10.07

                       Employment Agreement - L. Halstead

<PAGE>

                         COMPETITIVE COMMUNICATIONS INC.

                              EMPLOYMENT AGREEMENT

         This  Employment  Agreement (the  "Agreement") is made and entered into
effective the 31st day of August 1997 between COMPETITIVE COMMUNICATIONS INC., a
California corporation, having its principal place of business at 11713 Sterling
Avenue,  Suite F,  Riverside,  California  (hereinafter  "Employer"),  and Larry
Halstead  whose  address is 9859 IH 10 West,  #325,  San  Antonio,  Texas 78230,
(hereinafter "Employee").

1. Term.

         The Term of  Employee's  employment  hereunder  shall be for a five (5)
year  period,  unless  terminated  prior  thereto in  accordance  with section 4
hereof, commencing on the date hereof (the "Initial Term"). This Agreement shall
automatically extend for an additional two (2) year term (the "Extension Term"),
provided  that neither the  Employer nor Employee has elected to terminate  this
Agreement  effective  the end of the  Initial  Term by giving  three (3) months'
prior  written  notice  one to the  other.  The entire  duration  of  Employee's
employment by Employer is herein called the "Employment Period".

2. Position and Duties.

         2.1 Position and Duties.  Employee  agrees to serve as Chief  Financial
Officer and to perform  the duties set forth in  Appendix A attached  hereto and
such other duties as the Chief  Executive  Officer/Chairman  of the Board of the
Board of Directors of Employer shall from time to time direct.

         2.2 Faithful Performance.  Employee agrees to serve Employer faithfully
and to the best of his ability,  and to devote his  attention and efforts to the
business  and  affairs  of  Employer.  Employee  confirms  that he is  under  no
contractual  commitments  inconsistent  with the  obligations  set forth in this
Agreement,  and that  while  employed  hereunder  he will not  render or perform
services for any other  corporation,  firm,  entity or person  inconsistent with
this Agreement without the prior written consent of Employer.

         2.3 Rules and Regulations.  Employee shall at all times strictly adhere
to and  obey  all of the  reasonable  rules,  regulations,  corporate  policies,
directions, and restrictions now in effect or as may be subsequently modified or
adopted by Employer governing the conduct of executive employees.

3. Compensation.

         3.1 Base Salary. For all services to be rendered by Employee under this
Agreement, Employer agrees to pay or cause to be paid to Employee:

     (a) $68,000 per year ("Base Salary") prorated  commencing on the receipt of
at least $250,000 in funding investment by Employer, and

     (b) $115,000 per year ("Base Salary") prorated commencing on the receipt of
at least $1,000,000 in funding investment by Employer.

         Base Salary shall be payable at the  discretion of the Employer  either
weekly at 1/52nd of Base or  bi-monthly  at 1/26th of Base in two equal  monthly
payments  due on the first and  fifteenth  day of each  month.  Nothing  in this
provision shall operate to prevent increases in Employee's Base Salary from time
to time as determined by Employer's Board of Directors.

         3.2 Bonus.  In addition to the Base Salary,  Employee shall be entitled
to a bonus in any fiscal year in which the pre-tax and pre-contribution ("PTPC")
operating  profit of Employer is $1,000,000 or more.  The bonus shall be 1 equal
share of the Executive Bonus Pool ("ExBP"). The ExBP shall be equal to 6% of the
PTPC profit in any given fiscal year. The ExBP shall be paid at the same time as
the 6% PTPC Non-executive Employee Bonus Pool and within ten (10) days after the
Employer's  accountants  have  completed  the net  pre-tax  audit  and has  been
accepted by the Board of Directors.

         3.3 Additional Benefits. In addition to the Base Salary, Employee shall
be entitled during the Employment Period to receive such Additional  Benefits as
may be provided for him or to which he may become entitled because his position,
tenure,  salary,  age,  health  or other  qualifications  make him  eligible  to
participate.  For purposes hereof, "Additional Benefits" means (a) participation
in bonus and incentive  compensation plans or pools, stock option,  bonus, award
or  purchase  plans,  retirement  plans,  and other  employee  benefit  plans of
Employer,  if any;  (b)  life,  health,  medical,  dental,  accident,  and other
personal  insurance  coverage  provided  by  Employer  for  employees  or  their
dependents;  (c) directors' and officers'  liability insurance coverage provided
by  Employer  and  charter  or  bylaw  provisions  or  contracts  providing  for
indemnification  of corporate  personnel or  elimination  or limitation of their
liabilities as such; (d) an Employer provided automobile per guidelines approved
by the Board of Directors,  (e) use of Employer's  property and  facilities  and
other  perquisites  of employment  with Employer;  (f) paid  vacation,  leave or
holidays;  and (f) any and all other  compensation,  benefits and perquisites of
employment with Employer, if any, other than Base Salary.

         3.4  Expenses.   Employer  will  pay  or  reimburse  Employee  for  all
reasonable  and  necessary   out-of-pocket  expenses  incurred  by  him  in  his
performance  under this  Agreement,  subject to the  presentation of appropriate
vouchers in accordance with applicable laws and Employer's expense reimbursement
policies and procedures in effect and applicable to management employees.

         3.5 Location and  Relocation  Expenses.  Employer  shall pay for all of
Employee's moving and personal expenses in connection with any Employer required
relocations which occurs after Employee is hired.

4. Termination.

         4.1  Termination.  The  employment  of  Employee  with  Employer  shall
terminate on the date of the occurrence of any of the following events:

         (a) Expiration of the Employment Period hereof;

         (b) The death of Employee;

         (c) Fifteen (15) days after the date on which Employer shall have given
         Employee written notice of the termination of Employee's  employment by
         reason  of  permanent  physical  or  mental  incapacity  that
prevents
         Employee from performing the essential elements of Employee's  position
         for a period  of six  consecutive  months  or more as  determined  by a
         medical professional selected by Employer, in its sole discretion,  and
         by Employer acting in good faith;

         (d) Upon five (5) days' written  notice to Employee for "cause",  which
         shall  include  only the  following:  intentional  misconduct  or gross
         negligence by Employee in the course of  employment;  the commission or
         perpetration  by  Employee of any fraud  against  Employer or any other
         party in connection  with his employment  hereunder;  the commission by
         Employee  of such acts or  dishonesty,  fraud or  misrepresentation  or
         other  acts  of  moral   turpitude  as  would   prevent  the  effective
         performance of his duties;  knowingly causing or permitting Employer to
         violate  any law,  which  violation  shall  have a  material  effect on
         Employer;  or the failure to perform,  breach, or violation by Employee
         of any of Employee's  material  obligations  under this Agreement which
         continues  after  fifteen (15) days'  written  notice has been given to
         Employee by Employer  specifying  the  failure to perform,  breach,  or
         violation;

         (e) Upon at least sixty (60) days' advance  written notice by Employee;
or

     (f) Upon at least sixty (60) days' advance written notice by Employer based
solely on concurrence of a minimum of 4/5th of the Board of Directors.

         4.2  Payments of Base Salary, Incentive Bonus, and Additional Benefits.

         (a) Upon any  termination,  (1) Employee (or  Employee's  estate in the
         case of death) shall  immediately be paid all accrued Base Salary which
         would otherwise be due and payable and accrued vacation pay, all to the
         date of termination,  (2) benefits  accrued under  Employer's  Employee
         benefit plans, if any, will be paid in accordance with such plans,  and
         (3)  bonuses  shall be paid at the end of the  fiscal  year if earned ,
         with the amount  prorated  by the number of days during the fiscal year
         Employee was employed. Upon termination, Employee shall not be entitled
         to any other payments or benefits except upon the conditions and as set
         forth in Section 4.2 (b) of this Agreement.

         (b)  In  the  event  Employee's  employment  under  this  Agreement  is
         terminated  pursuant to Section  4.1(c) or 4.1(f):  Employer  shall pay
         Employee an amount equal the Employee's then Base Salary  multiplied by
         twenty-four (24) months.

         (c) In the event of  termination of Employee's  employment  pursuant to
         Section  4.1(c) or  4.1(f),  Employer  agrees to  continue  to  provide
         Employee's  medical  insurance  for a period of twenty four (24) months
         following such termination.

         4.3 Effect of  Termination.  Notwithstanding  any  termination  in this
Agreement,  the covenants and Agreements contained in Sections 4.4, 5, 6, 7, and
8 shall be construed as independent of any other agreements  between the parties
and shall  survive  the  termination  of the  employment  of the  Employee.  The
existence of any claim or cause of action of Employee against Employer,  whether
predicated on this Agreement or otherwise, shall not constitute a defense to the
enforcement by Employer of such covenants.

         4.4 Return of Employer's Property.  If Employee is terminated either by
expiration of this  Agreement,  pursuant to Section 4.1, or otherwise,  Employee
shall  immediately  deliver  to  Employer  all  originals  and  copies of notes,
memoranda, writings, lists, files, reports, customer lists, personnel files, and
information,  correspondence,  tapes,  discs, cards, logs,  machines,  technical
data,  credit cards,  keys to the  premises,  or any other  tangible  product or
documents  (individually and collectively known as "Company  Proprietary Items")
which Employee produced, received or otherwise had access to while employed.

5. Confidentiality.

         Employee during employment may have access to or become acquainted with
various confidential  information and trade secrets,  including, but not limited
to, formulas,  technical data, patents,  devices,  secret inventions,  personnel
information,   customer  lists,  processes,  and  compilations  of  information,
records,   reports,   correspondence,   tapes,  discs,   tangible  property  and
specifications (collectively and inclusively, "Confidential Information"), which
are owned by or licensed to  Employer.  Employee  shall not  disclose any of the
aforesaid Confidential Information, directly or indirectly, or use it in any way
either  during  the  Employment  Period  or at any time  thereafter,  except  as
required  in  the  course  of  his  Employment  by  Employer.  All  Confidential
Information of Employer,  whether  prepared by Employee or otherwise coming into
his possession, shall remain the exclusive property of Employer and shall not be
removed from the premises of Employer in any  circumstances  whatsoever  without
the prior written consent of Employer.

6. Restrictive Covenant.

         Non-Competition.  Employee  hereby  agrees  that  during  the  term  of
Employee's  employment  with Employer,  Employee  shall not engage,  directly or
indirectly,   or  be  interested  (as  director,   officer  employee,   partner,
consultant,  principal,  shareholder, or otherwise) in any firm, corporation, or
other entity in the business of developing, producing,  distributing, or selling
any product  competitive with the products of Employer in any geographic area in
which Employer  engages in such business  without the express written consent of
Employer. Ownership by Employee of less than one percent (1%) of the outstanding
voting stock of any competing  publicly held corporation  shall not constitute a
violation of this Section 6.

7. Injunctive Relief.

         Employee agrees that it would be difficult to compensate Employer fully
for damages suffered by Employer through any violation of the provisions of this
Agreement  by the  Employee  including  without  limitation  the  provisions  of
Sections 5 and 6 above, and Employee agrees that there is not adequate remedy at
law for such violation.  Accordingly, Employee specifically agrees that Employer
shall be entitled to temporary  and permanent  injunctive  relief to enforce the
provisions  of this  Agreement  and that such relief may be granted  without the
necessity  of  proving  actual  damages.  This  provision  shall  not in any way
whatsoever  diminish  the right of  Employer  to claim and  recover  damages  in
addition to injunctive relief.

8. Inventions.

         8.1  Inventions.  Employee  agrees to promptly  disclose  and assign to
Employer,  exclusively,  all of  his  rights  and  interest  in any  inventions,
discoveries,  improvements, designs, practices, processes, formulae, techniques,
know-how and methods  (hereinafter  collectively  referred to as " Inventions"),
that are in any way related to the services provided by Employee during the term
of  his  employment  with  Employer  or to  the  services  provided  under  this
Agreement,  or to any other work or project of Employer that Employee may either
become aware of or be assigned to work on by Employer, which he, individually or
jointly,  shall make,  originate,  conceive of or reduce to practice  during the
term of his  employment  with  Employer  or the  term of his  relationship  with
Employer  under  this  Agreement  whether  made  on or off of  the  premises  of
Employer; and he shall, during and after the term of his employment and the term
of this Agreement,  assist Employer to obtain,  for its own benefit,  patents on
such Inventions to remain the property of Employer whether or not patented.

         8.2 Trailer Period. Employee expressly agrees that any Inventions which
are disclosed or offered to third parties,  published or implemented by Employee
or  declared  in a  patent  application  filed  by  Employee  or by  any  entity
associated with Employee within one (1) year following termination of Employee's
employment shall be deemed to be originated or made during Employee's employment
with Employer and subject to Section 8.1 hereof,  unless Employee can prove by a
preponderance of the evidence to the contrary.

9. Miscellaneous.

         9.1  Choice  of Laws,  Jurisdiction,  Venue.  This  Agreement  is being
delivered in the State of California  and shall be construed in accordance  with
and  governed  by the  laws of such  state,  without  regard  to  principles  of
conflicts  of  laws.  Venue  for all  proceedings  in any way  relating  to this
Agreement, including without limitation, proceedings conducted under Section 9.5
hereof, shall lie in Riverside County, California.

         9.2 Other Agreements.  This Agreement  contains the entire agreement of
the parties  relating  to the subject  matter  hereof and  supersedes  all prior
agreements  and  understandings  with  respect to such subject  matter,  and the
parties hereto have not made agreements,  representations or warranties relating
to the  subject  matter of this  Agreement  which are not set forth  herein.  No
amendment or  modification of this Agreement  shall be deemed  effective  unless
made in writing signed by the parties hereto.

         9.3  Successors.  This  Agreement  shall  extend to and be binding upon
Employee, his legal representatives,  heirs and distributees, and upon Employer,
its successors and assigns;  provided,  however,  that Employee may not delegate
any of  Employee's  duties  under  this  Agreement.  For  the  purposes  of this
Agreement,  unless the context otherwise requires,  references to Employer shall
include Employer's subsidiaries and affiliated persons.

         9.4 No Waiver.  Forbearance  or  failure to pursue any legal  remedy or
right upon default or breach hereof shall not  constitute  waiver of such right,
nor shall any such  forbearance,  failure or actual  waiver imply or  constitute
waiver  of any  subsequent  default  or  breach.  No term or  condition  of this
Agreement  shall be deemed to have been waived,  nor shall there be any estoppel
to enforce any  provision  of this  Agreement,  except by a statement in writing
signed by the party  against  whom  enforcement  of the  waiver or  estoppel  is
sought.

         9.5  Arbitration.  All  disputes  arising  under  or  relating  to this
Agreement  or its breach  other than  actions  for  injunctive  relief  shall be
submitted to binding  arbitration under the Commercial  Arbitration Rules of the
American Arbitration Association.  Any award of the arbitrator(s) shall be final
and binding on the parties  hereto and  judgment on such award may be entered in
any court of competent jurisdiction.

         9.6 Attorneys' Fees. In the event of any litigation arising out of this
Agreement, the prevailing party shall be entitled to reimbursement of reasonable
attorneys' fees and costs.

         9.7 Notices.  Any notice with respect to this Agreement shall be deemed
to have been duly served on the party entitled to notice if that notice has been
served at the address provided in this Agreement or such other address as may be
provided  from time to time and shall be deemed duly given or made if  delivered
or deposited in the United States mail as first class mail, postage prepaid.

         9.8 Headings.  Headings used in this Agreement are used for convenience
only and do not constitute  substantive matters to be considered in constructing
the terms of this Agreement.

         9.9  Severability.  In case any one or more of the  provisions  of this
Agreement shall, for any reason, be held invalid,  illegal,  or unenforceable in
any respect,  any other  provisions in this  Agreement  shall be construed as if
such invalid,  illegal,  or  unenforceable  provisions  had never been contained
herein. Such provisions shall be given effect to the maximum extent permitted by
law.

         9.10 Counterparts. This Agreement may be executed simultaneously in one
or more counterparts, each of which shall be deemed an original and all of which
together shall constitute one and the same instrument.

         9.11 Amendments. This Agreement may not be altered, modified or amended
except pursuant to a written instrument executed by all parties hereto.

         9.12  Construction  of Agreement.  The parties hereto  acknowledge  and
agree that neither this  Agreement  nor any of the other  documents  executed in
connection  herewith  shall be construed more favorably in favor of one than the
other based upon which party  drafted the same, it being  acknowledged  that all
parties hereto  contributed  substantially to the negotiation and preparation of
this Agreement and the documents executed in connection herewith.

         9.13 No Third Party  Beneficiaries.  Except as otherwise  expressly set
forth in this Agreement, no person or entity not a party to this Agreement shall
have rights under this Agreement as a third party beneficiary or otherwise.

IN WITNESS  WHEREOF,  the  parties  hereby  have duly  executed  this  Agreement
effective as of the day and year above first written.

"EMPLOYEE"                                 COMPETITIVE COMMUNICATIONS INC.

By:_______________________          By:_________________________
                  Larry Halstead                      David Kline
                                               Chief Executive Officer

<PAGE>

                                   APPENDIX A

                        DUTIES OF CHIEF FINANCIAL OFFICER

         Reporting  to  the  Chairman  and  Chief  Executive  Officer,  directs,
administers  and  coordinates  the  activities  of personnel  assigned to him in
accordance with policies,  goals and objectives  established by the Chairman and
Chief  Executive  Officer and the Board of Directors.  Keeps and  maintains,  or
causes  to  be  kept  and  maintained  in  accordance  with  generally  accepted
accounting  principles,  adequate  and correct  accounts of the  properties  and
business  transactions  of the  corporation,  including  accounts of its assets,
liabilities,  receipts,  disbursements,  gains,  losses,  capital,  earnings (or
surplus) and shares.  Deposits all moneys and other valuables in the name and to
the credit of the corporation with such depositories as may be designated by the
Board of Directors.  Disburses the funds of the corporation as may be ordered by
the Board of Directors.  Renders to the President and  Directors,  whenever they
request it, an account of all of the transactions  and the financial  conditions
of the corporation.

         Assists the Chairman and Chief  Executive  Officer and President in the
development  of  corporate  policies  and goals that cover  company  operations,
personnel, financial performance and growth. May perform duties of the President
on his absence and of Chairman  and Chief  Executive  Officer in his absence and
the absence of the President.

     Directs the activities of personnel  assigned to him to include:  the Chief
Administrative  Officer  and Chief  Marketing  Officer.  Guides and  directs the
members of management in the promotion,  and sale of the corporation's  products
and services throughout the world.

         Directs his portion of corporate  operations to achieve budgeted profit
results and other financial  criteria and preserve the capital funds invested in
the enterprise.

         Serves as an equal voting  member of the Board of  Directors.  Executes
bonds,  mortgages and other  contracts  requiring a seal,  under the seal of the
corporation except where required or permitted by law to be otherwise signed and
executed and except where the signing and  execution  thereof shall be expressly
delegated  by the  Board of  Directors  to some  other  officer  or agent of the
corporation.  He shall have such other  powers and perform  such other duties as
may be prescribed by the Board of Directors or the By-Laws.

         At the  discretion  of the  Board  of  Directors,  may also  serves  as
corporate Secretary.  As Secretary he shall keep, or cause to be kept, a book of
minutes at the  principal  office or such other place as the Board of  Directors
may order, of all meetings of Directors and Shareholders,  at the time and place
of holding,  whether regular or special,  and if special,  how  authorized,  the
notice thereof given, the names of those present at  Shareholders'  meetings and
the proceedings thereof.

         The Secretary shall keep, or cause to be kept, at the principal  office
or at the office of the  corporation's  transfer  agent,  a share  register,  or
duplicate  share  register,  showing  the  names of the  Shareholders  and their
addresses; the number and classes of shares held by each; the number and date of
certificates  issued for the same;  and the number and date of  cancellation  of
every certificate surrendered for cancellation.

         The  Secretary  shall  give,  or cause to be  given,  notice of all the
meetings  of the  Shareholders  and of the Board of  Directors  required  by the
By-Laws or by law to be given,  and he shall keep the seal of the corporation in
safe custody,  and shall have such other powers and perform such other duties as
may be prescribed by the Board of Directors or by the By-Laws.

<PAGE>

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