Document:

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                                                                   EXHIBIT 10.24

                              EMPLOYMENT AGREEMENT

         This employment agreement (the "Agreement"), to be effective on July
19, 2004 (the "Effective Date"), by and between iLinc Communications, Inc., a
Delaware corporation (the "Company"), and John S. Hodgson ("Employee").

         WHEREAS, the Company wishes to offer employment to Employee on the
terms and conditions expressed herein; and,

         WHEREAS, the Employee wishes to accept employment with the Company on
the terms and conditions described herein;

         NOW THEREFORE, in consideration of the mutual premises and conditions
contained herein, including the recitals hereto, which, by this reference, are
incorporated herein and made a part hereof, the parties agree as follows:

1.  EMPLOYMENT. The Company hereby agrees to employ Employee, and Employee
    hereby accepts employment by the Company, upon the terms and subject to the
    conditions hereinafter set forth.

2.  DUTIES. Employee shall serve as a Senior Vice President and Chief Financial
    Officer of the Company (the "Position") reporting to the Company's
    President. Employee's duties and powers shall be those consistent with the
    Position, with such additional duties or titles as determined necessary and
    appropriate from time to time by the Company's President. Employee agrees to
    devote his full time, attention and best efforts to the Company in the
    performance of Employee's duties. All of the Employee's powers and
    authorities shall be subject to the reasonable direction and control of the
    Company's President. Employee acknowledges that the executive offices of the
    Company will be located in Phoenix, Arizona and that he shall be required to
    perform his duties under this Agreement from those offices.

3.  TERM. Unless earlier terminated in accordance with Section 6 hereof, the
    term of this Agreement shall be for twelve (12) months (the "Term"),
    beginning on the Effective Date. The Company shall have the option, but not
    the obligation, to renew this Agreement for one like period of time as the
    initial Term by providing no less than sixty (60) days prior written notice
    of its intent to renew this Agreement.

4.  COMPENSATION AND BENEFITS. In consideration for the services of the Employee
    hereunder, the Company will compensate Employee as follows:

         a.   BASE SALARY. Beginning with the Effective Date and continuing
              thereafter until this Agreement is terminated, Employee shall
              receive a monthly minimum base salary (the "Base Salary") equal to
              fourteen thousand five hundred eighty three and 34/100 dollars
              ($14,583.34) per month. Employee's Base Salary shall be paid in
              accordance with Company's standard policy regarding payment of
              compensation to employees but no less frequently than monthly.

         b.   BONUS. Commencing with the Effective Date and continuing
              thereafter until this Agreement is terminated, Employee will be
              eligible to receive an annual bonus of up to twenty five percent
              (25%) of the Employee's Base Salary that shall be based upon the
              Company achieving the revenue targets established by the
              President, as may be amended hereafter from time to time. Such
              bonus, if any, shall be payable by the Company to Employee

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              annually as approved by the Compensation Committee of the
              Company's Board of Directors. Notwithstanding anything to the
              contrary herein or contained in the writing related hereto, any
              bonus due to Employee shall be due up to and including the
              termination date of this Agreement, but no bonus shall accrue
              after the termination date of this Agreement.

         c.   BENEFITS. Employee shall be entitled to medical, dental and
              retirement benefits which are generally made available to
              employees of a like position, and specifically Company will pay
              the total premium costs associated with the medical and dental
              insurance, not including deductibles and/or co-payments, covering
              the health of Employee, Employee's spouse and Employee's
              dependants. During each year of his employment Employee shall be
              entitled to fifteen (15) days of paid vacation, and such other
              days of compensated absences, (i.e. sick leave or personal days)
              in accordance with the Company's policies and procedures as
              determined from time to time by the President.

5.  EXPENSES. It is acknowledged by the parties that Employee, in connection
    with the services to be performed by him pursuant to the terms of this
    Agreement, will be required to make payments for travel, meals, hotel,
    entertainment of business associates, mobile telephone and similar expenses
    (the "Out of Pocket Expenses"). The Company will reimburse Employee for all
    reasonable and necessary Out of Pocket Expenses incurred by Employee in the
    performance of his duties. Employee will comply with such budget
    limitations, approval and reporting requirements with respect to such Out of
    Pocket Expenses as the Company may establish from time to time.

6.  TERMINATION. Employee's employment will begin on the Effective Date and
    continue until the end of the Term, including any renewals thereof, except
    that the employment of Employee hereunder will terminate upon the occurrence
    of the following events:

         a.   BY EMPLOYEE. Employee's employment will terminate upon Employee's
              notice to Company, in writing at least thirty (30) days prior to
              Employee's last day of employment, of Employee's intent to
              terminate this Agreement. In the event of the termination of this
              Agreement pursuant to this sub-section 6(a), Employee will not be
              entitled to any Severance Amount (as hereinafter defined) or
              further consideration, except for any portion of the Base Salary
              accrued but unpaid from the last monthly payment date to the date
              of termination and expense reimbursements under Section 5 hereof
              for expenses incurred in the performance of his duties hereunder
              prior to termination.

         b.   DEATH OR DISABILITY. Employee's employment will terminate
              immediately upon the death of Employee during the term of his
              employment hereunder or, at the option of the Company, in the
              event of Employee's disability, upon 30 days notice to Employee.
              Employee will be deemed "disabled" if, as a result of Employee's
              incapacity due to physical or mental illness, Employee shall have
              been continuously absent from his duties with the company on a
              full-time basis for 120 consecutive business days, and Employee
              shall not reasonably be expected to be able to resume his duties
              within 60 days of the end of such 120 day period. In the event of
              the termination of this Agreement pursuant to this subsection
              6(b), Employee will not be entitled to any Severance Amount (as
              hereinafter defined) or other compensation except for any portion
              of his Base Salary accrued but unpaid from the last monthly
              payment date to the date of termination and expense reimbursements
              under Section 5 hereof or for expenses incurred in the performance
              of his duties hereunder prior to termination.

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         c.   FOR CAUSE. The Company may terminate the Employee's employment
              "for cause" immediately upon written notice by the Company to
              Employee. For purposes of this Agreement, a termination will be
              for Cause if: (i) Employee willfully and continuously fails to
              perform his duties with the Company (other than any such failure
              resulting from incapacity due to physical or mental illness); (ii)
              Employee willfully engages in gross misconduct materially and
              demonstrably injurious to the Company; (iii) Employee has been
              convicted of a felony which the President reasonably believes will
              result in injury to the Company or which would disqualify employee
              for coverage by the Company's surety bond; (iv) Employee
              materially breaches the representations contained in Section 9
              (Employee Representations) after written notice and failure to
              cure such breach. In the event of the termination of this
              Agreement pursuant to this sub-section 6(c), Employee will not be
              entitled to any Severance Amount (as hereinafter defined) or
              further consideration, except for any portion of the Base Salary
              accrued but unpaid from the last monthly payment date to the date
              of termination and expense reimbursements under Section 5 hereof
              for expenses incurred in the performance of his duties hereunder
              prior to termination.

         d.   BY COMPANY WITHOUT CAUSE. The Company may terminate this Agreement
              during the Term at any time for any reason "without cause." In the
              event of the termination of this Agreement pursuant to this
              subsection 6(d) and only in that event, then the Company will pay
              Employee, as Employee's sole remedy in connection with such
              termination, severance (the "Severance Amount") in an amount
              determined by multiplying Employee's monthly Base Salary by twelve
              (12) months. The Company will also pay Employee the portion of his
              Base Salary and bonus accrued but unpaid from the last monthly
              payment date to the date of termination and expense reimbursements
              under Section 5 hereof for expenses incurred in the performance of
              his duties hereunder prior to termination. The Company will pay
              the Severance Amount in a lump sum and within thirty (30) days of
              the Employee's last day of employment. The Company will be
              entitled to offset or mitigate the amount due under this
              subsection by any other amounts payable to Employee, including
              amounts payable or paid to Employee by third parties for
              Employee's services after the date of termination.

7.  STOCK OPTIONS. Employee shall be granted an option (the "Option") to
    purchase from the Company all or any part of a total of 225,000 shares of
    the Company's Common Stock, par value $.001 per share, at an exercise price
    equal to the closing price of the Company's Common stock on the date of
    grant (the "Date of Grant") of the Option. The Option will be an "incentive
    stock option" within the meaning of Section 422 of the Internal Revenue
    Code. The Option will expire on the day prior to the tenth (10th)
    anniversary of the Date of Grant, or such earlier date as may be provided in
    the 1997 Stock Compensation Plan (the "Plan"). Subject to the provisions of
    Plan, the Option may be exercised as follows; on the date that is six (6)
    months from the Date of Grant, twenty-five percent (25.000%) of the options
    granted shall be vested, and thereafter beginning on the first day of the
    seventh month after the Date of Grant, one thirty-sixth (1/36) of the
    remaining portion shall vest on the first day of each month, from month to
    month, until fully vested. In addition to the foregoing stock option grant,
    Employee will be eligible to participate in the Company's stock option plan
    and therefore eligible for an annual grant of additional stock options, if
    any, that are awarded to all of the Company's employees. If Employee is
    terminated "without cause" under Section 6(d) above, then the effect of the
    termination of the Employee's employment on such options shall be determined
    by the terms of the Plan and the option agreement related to such Options.
    If Employee is terminated "for cause" under Section 6(c) above, then the
    Options shall be terminated. In the event of a "Change of Control" as
    defined in the Plan while this Agreement remains in effect, then the Options

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    issued and outstanding to Employee shall immediately vest (100%), and the
    Employee may exercise his options at any time during the original term of
    the option agreement (as defined therein), and such termination of this
    Agreement shall not cause termination or expiration of the Option.

8.  CONFIDENTIAL INFORMATION. Employee recognizes and acknowledges that certain
    assets of the Company and its affiliates, including without limitation
    information regarding customers, pricing policies, methods of operation,
    proprietary computer programs, sales, products, profits, costs, markets, key
    personnel, formulae, product applications, technical processes, and trade
    secrets (herein called "Confidential Information") are valuable, special and
    unique assets of the Company and its affiliates. Employee will not, during
    or after the term of his employment, disclose any of the Confidential
    Information to any person, firm, corporation, association, or any other
    entity for any reason or purpose whatsoever, directly or indirectly, except
    as may be required pursuant to his employment hereunder, unless and until
    such Confidential Information becomes publicly available other than as a
    consequence of the breach by Employee of his confidentiality obligations
    hereunder. In the Event of the termination of his employment, whether
    voluntary or involuntary, and whether by the Company or Employee, Employee
    will deliver to the Company all documents and data pertaining to the
    Confidential Information and will not take with him any documents or data of
    any kind or any reproductions (in whole or in part) of any items relating to
    the Confidential Information.

9.  REPRESENTATIONS OF EMPLOYEE.

         a.   NON-COMPETITION AND NON-SOLICITATION. For the period beginning
              with the Effective Date and continuing thereafter until the
              expiration of twelve (12) months after termination of Employee's
              employment with the Company, then Employee covenants, warrants and
              represents that he will not: (i) engage directly or indirectly,
              alone or as a shareholder, partner, officer, director, employee or
              consultant of any other business organization, including as an
              agent or reseller of another company that engages in any business
              activities that are directly competitive with the Company,
              including but not limited to the web conferencing, eLearning or
              audio conferencing industries; (ii) divert to any competitor of
              the Company any customer of the Company or induce a customer to
              cease doing business with the Company or, (iii) solicit or
              encourage any employee of the Company to leave their employment
              with the Company or seek employment by or with any competitor of
              the Company or hire directly or indirectly any employee of the
              Company. The parties hereto acknowledge that Employee's
              non-competition obligations hereunder will not preclude Employee
              from owning less than 5% of the common stock of any publicly
              traded corporation conducting business activities that are
              competitive with the Company or serving as an officer, director,
              stockholder or employee of an entity whose business operations are
              not competitive with those of the Company. Employee will continue
              to be bound by the provisions of this Section 9 until their
              expiration and will not be entitled to any compensation from the
              Company with respect thereto. If at any time the provisions of
              this Section 9 are determined to be invalid or unenforceable, by
              reason of being vague or unreasonable as to area, duration or
              scope of activity, this Section 9 will be considered divisible and
              will become and be immediately amended to only such area,
              duration, scope of activity as will be determined to be reasonable
              and enforceable by the court or other body having jurisdiction
              over the matter; and Employee agrees that this Section 9 as so
              amended will be valid and binding as though any invalid or
              unenforceable provision had not been included herein.

         b.   GENERAL REPRESENTATIONS. As of the Effective Date, Employee
              expressly warrants and represents to the Company that: (i) All
              employment agreements, employment letters or employment
              relationships, whether as an employee or as an independent
              contractor, have been terminated (ii) The execution and delivery

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              of this Agreement does not violate any provision of any existing
              employment agreement to which Employee is a party and which on the
              Effective Date remain in effect; and (iii) Employee is not (by
              virtue of any act or omission) in violation of any non-competition
              or like covenant that would have the effect of prohibiting
              Employee from lawfully engaging in the activities contemplated by
              this Agreement.

10. GENERAL.

         a.   NOTICES. All notices and other communications hereunder will be in
              writing or by written telecommunication, and will be deemed to
              have been duly given if delivered personally or if mailed by
              certified mail, return receipt requested or by written
              telecommunication, to the relevant address set forth below, or to
              such other address as the recipient of such notice or
              communication will have specified to the other party hereto in
              accordance with this Section 10(a):

                 If to the Company, to:                  If to Employee:

                 iLinc Communications, Inc.              John S. Hodgson
                 2999 N. 44th Street, Suite 650          12850 South 71st Street
                 Phoenix, Arizona 85018                  Tempe, Arizona  85284
                 Attn: President                         480-730-6092 (Home)
                 Fax No.: (602) 952-0544                 jackhodgson@cox.net

         b.   WITHHOLDING AND OFFSET. All payments required to be made by the
              Company under this Agreement to Employee will be subject to the
              withholding of such amounts, if any, relating to federal, state
              and local taxes as may be required by law. All payments under this
              Agreement will be subject to offset or reduction attributable to
              any amount Employee may owe to the Company.

         c.   EQUITABLE REMEDIES. Each of the parties hereto acknowledges and
              agrees that upon any breach by Employee of his obligations under
              any of the Sections 8 and 9 hereof, the Company will have no
              adequate remedy at law, and accordingly will be entitled to
              specific performance and other appropriate injunctive and
              equitable relief.

         d.   SEVERABILITY. If any provision of this Agreement is held to be
              illegal, invalid or unenforceable, such provision will be fully
              severable and this Agreement will be construed and enforced as if
              such illegal, invalid or unenforceable provision never comprised a
              part hereof; and the remaining provisions hereof will remain in
              full force and effect and will not be affected by the illegal,
              invalid or unenforceable provision or by its severance herefrom.
              Furthermore, in lieu of such illegal, invalid or unenforceable
              provision, there will be added automatically as part of this
              Agreement a provision as similar in its terms to such illegal,
              invalid or unenforceable provision as may be possible and be
              legal, valid and enforceable. Any and all covenants and
              obligations of either party hereto which by their terms or by
              reasonable implication are to be performed, in whole or in part,
              after the termination of this Agreement, shall survive such
              termination, including specifically the obligations arising under
              Sections: 6, 7, 8 and 9.

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         e.   WAIVERS. No delay or omission by either party hereto in exercising
              any right, power or privilege hereunder will impair such right,
              power or privilege, nor will any single or partial exercise of any
              such right, power or privilege preclude any further exercise
              thereof or the exercise of any other right, power or privilege.

         f.   COUNTERPARTS. This Agreement may be executed in multiple
              counterparts, each of which will be deemed an original, and all of
              which together will constitute one and the same instrument.

         g.   CAPTIONS. The captions in this Agreement are for convenience of
              reference only and will not limit or otherwise affect any of the
              terms or provisions hereof.

         h.   REFERENCE TO AGREEMENT. Use of the words "herein," "hereof,"
              "hereto " and the like in this Agreement refer to this Agreement
              only as a whole and not to any particular subsection or provision
              of this Agreement, unless otherwise noted.

         i.   BINDING AGREEMENT. This Agreement will be binding upon and inure
              to the benefit of the parties and will be enforceable by the
              personal representatives and heirs of Employee and the successors
              of the Company. If Employee dies while any amounts would still be
              payable to him hereunder, such amounts will be paid to Employee's
              estate. This Agreement is not otherwise assignable by Employee.

         j.   ENTIRE AGREEMENT. Except as provided in the benefit plans and
              programs referenced herein, this Agreement contains the entire
              understanding of the parties, supersedes all prior agreements and
              understandings relating to the subject matter hereof and may not
              be amended except by a written instrument hereafter signed by each
              of the parties hereto. Any modification of this Agreement shall be
              effective only if it is in writing and signed by the parties
              hereto.

         k.   GOVERNING LAW. This Agreement and the performance hereof will be
              construed and governed in accordance with the laws of the State of
              Arizona, without regard to its choice of law principles.

         l.   ATTORNEYS' FEES. If legal action is commenced by either party to
              enforce or defend its rights under this Agreement, the prevailing
              party in such action shall be entitled to recover its court costs
              and reasonable attorneys' fees, including expert witnesses fees
              actually incurred which shall be awarded to the that party, in
              addition to any other relief granted.

         m.   AUTHORITY. The signatories to this Agreement represent and warrant
              that such signatory has the authority to enter into this
              Agreement, and that neither that signatory nor the party on whose
              behalf this Agreement may be signed has assigned any claims
              related to the parties' relationship or this Agreement to any
              person or entity.

11. BINDING ARBITRATION. Any controversy or claim arising out of or relating to
    this Agreement, or breach thereof, shall be settled exclusively by
    arbitration in Phoenix, Arizona, in accordance with the Commercial
    Arbitration Rules of the American Arbitration Association then in effect. A
    sole arbitrator shall conduct Arbitration and he shall render his award, if
    any, within five (45) days of the arbitration hearing. Judgment upon the
    award rendered by the arbitrator may be entered in, and enforced by, any
    court having jurisdiction thereof. The award of the arbitrator may grant any
    relief consistent with the terms and provisions of this Agreement, in law or
    in equity; and the award may contain a provision for payment of costs and
    attorney's fees to the prevailing party.

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         EXECUTED to be effective as of the Effective Date first written above.

ILINC COMMUNICATIONS, INC.             EMPLOYEE:

By: ______________________________     By: ___________________________________
         James M. Powers, Jr.,                   John S. Hodgson,
         President                               Individually

Date: ___________________________      Date: _____________________________

                                  Page 7 of 7<PAGE>
EXHIBIT 10.1

[LOGO-CA Assoc. of Realtors] COMMERCIAL LEASE AGREEMENT
                          (C.A.R. Form CL, Revised 10/01)

Date (For reference only):_______________
Noel C. McDermott and Warren P. Yost ("Landlord") and Microtel International
Incorporated ("Tenant") agree as follows:
1.       PROPERTY: Landlord rents to Tenant and Tenant rents from Landlord, the
         real property and improvements described as: 894 Faulstich Court, San
         Jose, CA 925112-1361 ("Premises"), which compromise approximately 100%
         of the total square footage of rentable space in the entire property.
         See Exhibit A for a further description of the Premises.
2.       TERM: The term shall be for 7 years and 0 months, beginning on (date)
         July 1, 2004 ("Commence Date").
         (Check A or B):
     [X] A.       Lease: and shall terminate on (date) June 30, 2011 at Midnight
                  AM PM. Any holding over after the term of this agreement
                  expires, with Landlord's consent, shall create a
                  month-to-month tenancy that either party may terminate as
                  specified in paragraph 2B. Rent shall be at a rate equal to
                  the rent for the immediately preceding month, payable in
                  advance. All other terms and conditions of this agreement
                  shall remain in full force and effect.

     [ ]  B.       Month-to-month: and continues as a month-to-month tenancy.
                  Either party may terminate the tenancy by giving written
                  notice to the other at least 30 days prior to the intended
                  termination date, subject to any applicable local laws. Such
                  notice may be given on any date.

     [X] C.       RENEWAL OR EXTENSION TERMS: See attached addendum Exhibit B.
3:       BASE RENT:
         A.       Tenant agrees to pay Base Rent at the rate of (CHECK ONE
                  ONLY:)
          [ ] (1) $__________ per month, for the term of the agreement.
          [ ] (2) $__________ per month, for the first 12 months of the
                  agreement. Commencing with the 13th month, and upon expiration
                  of each 12 months thereafter, rent shall be adjusted according
                  to any increase in the U.S. Consumer Price Index of the Bureau
                  of Labor Statistics of the Department of Labor for All Urban
                  Consumers ("CPI") for ________________________ (the city
                  nearest the location of the Premises), based on the following
                  formula: Base Rent will be multiplied by the most current CPI
                  preceding the first calendar month during which the adjustment
                  is to take effect, and divided by the most recent CPI
                  preceding the Commencement Date. In no event shall any
                  adjusted Base Rent be less than the Base Rent for the month
                  immediately preceding the adjustment. If the CPI is no longer
                  published, then the adjustment to Base Rent shall be based on
                  an alternate index that most closely reflects the CPI.
          [ ] (3) $__________ per month for the period commencing __________ and
                  ending __________ and $__________ per month for the period
                  commencing __________ and ending __________ and $__________
                  per month for the period commencing __________ and ending
                  __________.
          [ ] (4) In accordance with the attached rent schedule.
         [X]  (5) Other: Specified in Exhibit C.
         B.       Base Rent is payable in advance on the 1st (or _____) day of
                  each calendar month, and is delinquent on the next day.
         C.       If Commencement Date falls on any day other than the first day
                  of the month, Base Rent for the first calendar month shall be
                  prorated based on a 30-day period. If Tenant has paid one full
                  month's Base Rent in advance of Commencement Date, Base Rent
                  for the second calendar month shall be prorated based on a
                  30-day period.
4.       RENT:
         A.       Definition: ("Rent") shall mean all monetary obligations of
                  Tenant to Landlord under the terms of this agreement, except
                  security deposit.
         B.       Payment: Rent shall be paid to (Name) Noel C. McDermott and
                  Warren P. Yost, at (address) 502 Village Circle, Santa Cruz,
                  CA 95060, or at any other location specified by Landlord in
                  writing to Tenant.
         C.       Timing: Base Rent shall be paid as specified in paragraph 3.
                  All other Rent shall be paid within 30 days after Tenant is
                  billed by Landlord.

                                    Landlord and Tenant acknowledge receipt of
                                    a copy of this page.
                                    Landlord's initials ( NCM by WPY ) ( WPY )
                                    Tenant's initials ( CTO ) (_____)
                                    --------------------------------------------
                                    Reviewed by
                                    Broker of Designee __________ Date__________
                                    --------------------------------------------
Commercial Lease Agreement (CL-11 Page 1 of 8)
<PAGE>

Premises 894 Faulstich Court, San Jose CA 95112-1361        Date________________

5.       EARLY POSSESSION: Tenant is entitled to possession of the Premises on
         N/A. If Tenant is in possession prior to the Commencement Date, during
         this time (i) Tenant is not obligated to pay Base Rent, and (ii) Tenant
         is is not obligated to pay Rent other than Base Rent. Whether or not
         Tenant is obligated to pay Rent prior to Commencement Date, Tenant is
         obligated to comply with all other terms of this agreement.
6.       SECURITY DEPOSIT:
         A.       Tenant agrees to pay Landlord $35,000.00 as a security
                  deposit. Tenant agrees not to hold Broker responsible for its
                  return.
                  (IF CHECKED:) [ ] If Base Rent increases during the term of
                  this agreement, Tenant agrees to increase security deposit by
                  the same portion as the increase in Base Rent.
         B.       All or any portion of the security deposit may be used, as
                  reasonably necessary, to: (i) cure Tenant's default in payment
                  of Rent, late charges, non-sufficient funds ("NSF") fees, or
                  other sums due; (ii) repair damage, excluding ordinary wear
                  and tear, caused by Tenant or by a guest or licensee of
                  Tenant; (iii) broom clean the Premises, if necessary, upon
                  termination of tenancy; and (iv) cover any other unfulfilled
                  obligation of Tenant. SECURITY DEPOSIT SHALL NOT BE USED BY
                  TENANT IN LIEU OF PAYMENT OF LAST MONTH'S RENT. If all or any
                  portion of the security deposit is used during the tenancy,
                  Tenant agrees to reinstate the total security deposit within 5
                  days after written notice is delivered to Tenant. Within 30
                  days after Landlord receives possession of the Premises,
                  Landlord shall: (i) furnish Tenant and itemized statement
                  indicating the amount of any security deposit received and the
                  basis for its disposition, and (ii) return any remain portion
                  of security deposit to Tenant. However, if the Landlord's only
                  claim upon the security deposit is for unpaid Rent, then the
                  remain portion of the security deposit, after deduction of
                  unpaid Rent, shall be returned within 14 days after the
                  Landlord receives possession.
         C.       No interest will be paid on security deposit, unless required
                  by local ordinance.
7.       PAYMENTS:                           PAYMENT      BALANCE
                               TOTAL DUE     RECEIVED      DUE       DUE DATE
                               ---------     --------      ---       --------
A. Rent From July 1         $27,000.00/    $__________  $__________  July 1
     To July 31              month
B. Security Deposit         $35,000.00     $__________  $__________  July 1
C. Other: Taxes, Insurance
     & Maintenance Category $____________  $__________  $__________  as incurred
D. Other: Late Payment
     of Security Deposit
     Category               $100.00/day    $__________ $__________   July 1
E. Total:                   $____________  $__________ $__________

8.       PARKING: Tenant is entitled to 45 unreserved and N/A reserved vehicle
         parking spaces. The right to parking |X| is [ ] is not included in the
         Base Rent charged pursuant to paragraph 3. If not included in the Base
         Rent, the parking rental fee shall be an additional $ N/A per month.
         Parking space(s) are to be used for parking operable motor vehicles,
         except for trailers, boats, campers, buses or trucks (other than
         pick-up trucks). Tenant shall park in assigned space(s) only. Parking
         space(s) are to be kept clean. Vehicles leaking oil, gas or other motor
         vehicle fluids shall not be parked in parking spaces or on the
         Premises. Mechanical work or storage of inoperable vehicles is not
         allowed in parking space(s) or elsewhere on the Premises. No overnight
         parking is permitted.
9.       ADDITIONAL STORAGE: Storage is permitted as follows: N/A.
         The right to additional storage space is is not included in the Base
         Rent charged pursuant to paragraph 3. If not included in Base rent,
         storage space shall be an additional $ N/A per month. Tenant shall
         store only personal property that Tenant owns, and shall not store
         property that is claimed by another, or in which another has any right,
         title, or interest. Tenant shall not store any improperly packaged food
         or perishable goods, flammable materials, explosives, or other
         dangerous or hazardous material. Tenant shall pay for, and be
         responsible for, the clean-up of any contamination caused by Tenant's
         use of the storage area.
10.      LATE CHARGE; INTEREST; NSF CHECKS: Tenant acknowledges that either late
         payment of Rent or issuance of a NSF check may cause Landlord to incur
         costs and expenses, the exact amount of which are extremely difficult
         and impractical to determine. These costs my include, but are not
         limited to, processing, enforcement and accounting expenses, and late
         charges imposed on Landlord. If any installment of Rent due from Tenant
         is not received by Landlord within 10 calendar days after date due, or
         if a check is returned NSF, Tenant shall pay to Landlord, respectively,
         $ 50 as late charge, plus 10%

                                    Landlord and Tenant acknowledge receipt of
                                    a copy of this page.
                                    Landlord's initials ( NCM by WPY ) ( WPY )
                                    Tenant's initials ( CTO ) (_____)
                                    --------------------------------------------
                                    Reviewed by
                                    Broker of Designee __________ Date__________
                                    --------------------------------------------
Commercial Lease Agreement (CL-11 Page 2 of 8)
<PAGE>

Premises 894 Faulstich Court, San Jose CA 95112-1361        Date________________

         interest per annum on the delinquent amount and $100.00 as a NSF fee,
         any of which shall be deemed additional Rent. Landlord and Tenant agree
         that these charges represent a fair and reasonable estimate of the
         costs Landlord may incur by reason of Tenant's late or NSF payment. Any
         late charge, delinquent interest, or NSF fee due shall be paid with the
         current installment of Rent. Landlord's acceptance of any late change
         or NSF fee shall not constitute a waiver as to any default of Tenant.
         Landlord's right to collect a Late Charge or NSF fee shall not be
         deemed an extension of the date Rent is due under paragraph 4, or
         prevent Landlord from exercising any other rights and remedies under
         this agreement, and as provided by law.
11.      CONDITION OF PREMISES: Tenant has examined the Premises and
         acknowledges that Premise is clean and in operative condition, with the
         following exceptions:_________________________________________________.
         Items listed as exceptions shall be dealt with in the following
         manner:_______________________________________________________________.

         ______________________________________________________________________.
12.      ZONING AND LAND USE: Tenant accepts the Premises subject to all local,
         state and federal laws, regulations and ordinances ("Laws"). Landlord
         makes no representations or warranty that Premises are now or in the
         future will be suitable for Tenant's use. Tenant has made it own
         investigation regarding all applicable Laws.
13.      TENANT OPERATING EXPENSES: Tenant agrees to pay for all utilities and
         services directly billed to Tenant____________________________________.
14.      PROPERTY OPERATING EXPENSES:
         A.       Tenant agrees to pay its proportionate share of Landlord's
                  estimated monthly property operating expenses, including but
                  not limited to, common area maintenance, consolidated utility
                  and service bills, insurance, and real estate taxes, based on
                  the ratio of the square footage of the Premises to the total
                  square footage of the rentable space in the entire property.
                  100% of space .
OR       B.       [ ] (If checked) Paragraph 14 does not apply.
15.      USE: The Premises are for the sole use as LIGHT MANUFACTURING/
         TELECOMMUNICATIONS EQUIPMENT . No other use is permitted without
         Landlord's prior written consent. If any use by tenant causes an
         increase in the premium on Landlord's existing property insurance,
         Tenant shall pay for the increased cost. Tenant will comply with all
         Laws affecting its use of the Premises.
16.      RULES/REGULATIONS: Tenant agrees to comply with all rules and
         regulations of Landlord (and, if applicable, Owner's Association) that
         are at any time posted on the Premises or delivered to Tenant. Tenant
         shall not, and shall ensure that guests and licenses of Tenant do not,
         disturb, annoy, endanger, or interfere with other tenants of the
         building or neighbors, or use the Premises for any unlawful purposes,
         including, but not limited to, using, manufacturing, selling, storing,
         or transporting illicit drugs or other contraband, or violate any law
         or ordinance, or committing a waste or nuisance on or about the
         Premises.
17.      MAINTENANCE:
         A.       Tenant OR [ ] (if checked, Landlord) shall professionally
                  maintain the Premises including heating, air conditioning,
                  electrical, plumbing and water systems, if any, and keep
                  glass, windows and doors in operable and safe condition.
                  Unless Landlord is checked, if Tenant fails to maintain the
                  Premises, Landlord may contract for or perform such
                  maintenance, and charge Tenant for Landlord's cost.
         B.       Landlord OR [ ] (if checked, Tenant) shall maintain the roof,
                  foundation, exterior walls, common areas and PARKING LOT .
18.      ALTERATIONS: Tenant shall not make any alterations in or about the
         Premises, including installation of trade fixtures and signs, without
         Landlord's prior written consent, which shall not be unreasonably
         withheld. Any alterations to the Premises shall be done according to
         Law and with required permits. Tenant shall give Landlord advance
         notice of the commencement date of any planned alteration, so that
         Landlord, at its option, may post a Notice of Non-Responsibility to
         prevent potential liens against Landlord's interest in the Premises.
         Landlord may also require Tenant to provide Landlord with lien releases
         from any contractor performing work on the Premises.
19.      GOVERNMENT IMPOSED ALTERATIONS. Any alterations required by Law as a
         result of Tenant's use shall be Tenant's responsibility. Landlord shall
         be responsible for any other alterations required by Law.
20.      ENTRY: Tenant shall make Premises available to Landlord or Landlord's
         agent for the purpose of entering to make inspections, necessary or
         agreed repairs, alterations, or improvements, or to supply necessary or
         agreed services, or to show Premises to prospective or actual
         purchasers, tenants, mortgagees, lenders, appraisers, or contractors.
         Landlord and Tenant agree that 24 hours notice (oral or written) shall

                                    Landlord and Tenant acknowledge receipt of
                                    a copy of this page.
                                    Landlord's initials ( NCM by WPY ) ( WPY )
                                    Tenant's initials ( CTO ) (_____)
                                    --------------------------------------------
                                    Reviewed by
                                    Broker of Designee __________ Date__________
                                    --------------------------------------------
Commercial Lease Agreement (CL-11 Page 3 of 8)
<PAGE>

Premises 894 Faulstich Court, San Jose CA 95112-1361        Date________________

         be reasonable and sufficient notice. In an emergency, Landlord or
         Landlord's representative may enter Premises at any time without prior
         notice.
21.      SIGNS: Tenant authorizes Landlord to place a FOR SALE sign o the
         Premises at any time, and a FOR LEASE sign on the Premises within the
         90 (or [ ] _________________) day period preceding the termination of
         the agreement.
22.      SUBLETTING/ASSIGNMENT: Tenant shall not sublet or encumber all or any
         part of Premises, or assign or transfer this agreement or any interest
         in it, without the prior written consent of Landlord, which shall not
         be unreasonably withheld. Unless such consent is obtained, any
         subletting, assignment, transfer, or encumbrance of the Premises,
         agreement, or tenancy, by voluntary act of Tenant, operation of law, or
         otherwise, shall be null and void, and at the option of Landlord,
         terminate this agreement. Any proposed sublessee, assignee, or
         transferee shall submit to Landlord an application and credit
         information for Landlord's approval, and, if approved, sign a separate
         written agreement with Landlord and Tenant. Landlord's consent to any
         one sublease, assignment, or transfer, shall not be construed as
         consent to any subsequent sublease, assignment or transfer, and does
         not release Tenant of Tenant's obligation under this agreement.
23.      POSSESSION: If Landlord is unable to deliver possession of Premises on
         Commencement date, such date shall be extended to the date on which
         possession is made available to Tenant. However, the expiration date
         shall remain the same as specified in paragraph 2. If Landlord is
         unable to deliver possession within 60 (or [ ] ____________) calendar
         days after agreed Commencement Date, Tenant may terminate this
         agreement by giving written notice to Landlord, and shall be refunded
         all Rent and security deposit paid.
24.      TENANT'S OBLIGATIONS UPON VACATING PREMISES: Upon termination of
         agreement, Tenant shall: (i) give Landlord all copies of all keys or
         opening devices to Premises, including any common areas; (ii) vacate
         Premises and surrender it to Landlord empty of all persons and personal
         property; (iii) vacate all parking and storage spaces; (iv) deliver
         Premises to Landlord in the same condition as referenced in paragraph
         11; (v) clean Premises; (vi) give written notice to Landlord of
         Tenant's forwarding address; and, (vii)
         ______________________________________________________________________.
         All improvements installed by Tenant, with or without Landlord's
         consent, become the property of Landlord upon termination. Landlord may
         nevertheless require Tenant to remove any such improvement that did not
         exist at the time possession was made available to Tenant.
25.      BREACH OF CONTRACT/EARLY TERMINATION: In event Tenant, prior to
         expiration of this agreement, breaches any obligation in this
         agreement, abandons the premises, or gives notice of tenant's intent to
         terminate this tenancy prior to its expiration, in addition to any
         obligations established by paragraph 24, Tenant shall also be
         responsible for lost rent, rental commissions, advertising expenses,
         and painting costs necessary to ready Premises for re-rental. Landlord
         may also recover from Tenant: (i) the worth, at the time of award, of
         the unpaid Rent that had been earned at the time of termination; (ii)
         the worth, at the time of award, of the amount by which the unpaid Rent
         that would have bee earned after expiration until the time of award
         exceeds the amount of such rental loss the Tenant proves could have
         been reasonably avoided; and (iii) the worth, at the time of award, of
         the amount by which the unpaid Rent for the balance of the term after
         the time of the award exceeds the amount of such rental loss that
         Tenant proves could be reasonably avoided. Landlord may elect to
         continue the tenancy in effect for so long as Landlord does not
         terminate Tenant's right to possession, by either written notice of
         termination of possession or by reletting the Premises to another who
         takes possession, and Landlord may enforce all Landlord's rights and
         remedies under this agreement, including the right to recover the Rent
         as it becomes due.
26.      DAMAGE TO PREMISES: If, by no fault of Tenant, Premises are totally or
         partially damaged or destroyed by fire, earthquake, accident or other
         casualty, Landlord shall have the right to restore the Premises by
         repair or rebuilding. If Landlord elects to repair or rebuild, and is
         able to complete such restoration within 90 days from the date of
         damage, subject to terms of this paragraph, this agreement shall remain
         in full force and effect. If Landlord is unable to restore the Premises
         within this time, or if Landlord elects not to restore, then either
         Landlord or Tenant may terminate this agreement by giving the other
         written notice. Rent shall be abated as of the date of damage. The
         abated amount shall be the current monthly Base Rent prorated on a
         30-day basis. If this agreement is not terminated, and the damage is
         not repaired, then Rent shall be reduced based on the extent to which
         the damage interferes with Tenant's reasonable use of Premises.

                                    Landlord and Tenant acknowledge receipt of
                                    a copy of this page.
                                    Landlord's initials ( NCM by WPY ) ( WPY )
                                    Tenant's initials ( CTO ) (_____)
                                    --------------------------------------------
                                    Reviewed by
                                    Broker of Designee __________ Date__________
                                    --------------------------------------------
Commercial Lease Agreement (CL-11 Page 4 of 8)
<PAGE>

Premises 894 Faulstich Court, San Jose CA 95112-1361        Date________________

         If damage occurs as a result of an act of Tenant or Tenant's guest,
         only Landlord shall have the right of termination, and no reduction in
         Rent shall be made.
27.      HAZARDOUS MATERIALS: Tenant shall not use, store, generate, release or
         dispose of any hazardous material on the Premises or the property of
         which the Premises are part. However, Tenant is permitted to make use
         of such materials that are required to be used in the normal course of
         Tenant's business provided that Tenant complies with all applicable
         Laws related to the hazardous materials. Tenant is responsible for the
         cost of removal and remediation, or any clean-up of any contamination
         caused by Tenant.
28.      CONDEMNATION: If all or part of the Premises is condemned for public
         use, either party may terminate this agreement as of the date
         possession is given to the condemner. All condemnation proceeds,
         exclusive of those allocated by the condemner to Tenant's relocation
         costs and trade fixture, belong to Landlord.
29.      INSURANCE: Tenant's personal property, fixtures, equipment, inventory
         and vehicles are not insured by Landlord against loss or damage due to
         fire, theft, vandalism, rain, water, criminal or negligent acts of
         others, or any other cause. Tenant is to carry Tenant's own property
         insurance to protect Tenant from any such loss. In addition, Tenant
         shall carry liability insurance in an amount of not less than $ 3M .
         Tenant's liability insurance shall name Landlord and Landlord's agent
         as additional insured. Tenant, upon Landlord's request, shall provide
         Landlord with a certificate of insurance establishing Tenant's
         compliance. Landlord shall maintain liability insurance insuring
         Landlord, but not Tenant, in an amount of at least $1M, plus property
         insurance in an amount sufficient to cover the replacement cost of
         the property. Tenant is advised to carry business interruption
         insurance in an amount at least sufficient to cover Tenant's complete
         rental obligation to Landlord. Landlord is advised to obtain a policy
         of rental loss insurance. Both Landlord and Tenant release each other,
         and waive their respective rights to subrogation against each other,
         for loss or damage covered by insurance.
30.      TENANCY STATEMENT (ESTOPPEL CERTIFICATE): Tenant shall execute and
         return a tenancy statement (estoppel certificate), delivered to Tenant
         by Landlord or Landlord's agent, within 3 days after its receipt. The
         tenancy statement shall acknowledge that this agreement is unmodified
         and in full force, or in full force as modified, and state the
         modifications. Failure to comply with this requirement: (i) shall be
         deemed Tenant's acknowledgment that the tenancy statement is true and
         correct, and may be relied upon by a prospective lender or purchaser;
         and (ii) may be treated by Landlord as a material breach of this
         agreement. Tenant shall also prepare, execute, and deliver to Landlord
         any financial statement (which will be held in confidence) reasonably
         requested by a prospective lender or buyer.
31.      LANDLORD'S TRANSFER: Tenant agrees that the transferee of Landlord's
         interest shall be substituted as Landlord under this agreement.
         Landlord will be released of any further obligation to Tenant regarding
         the security deposit, only if the security deposit is returned to
         Tenant upon such transfer, or if the security deposit is actually
         transferred to the transferee. For all other obligations under this
         agreement, Landlord is released of any further liability to Tenant,
         upon Landlord's transfer.
32.      SUBORDINATION: This agreement shall be subordinate to all existing
         liens and, at Landlord's option, the lien of any first deed of trust or
         first mortgage subsequently placed upon the real property of which the
         Premises are a part, and to any advances made on the security of the
         Premises, and to all renewals, modifications, consolidations,
         replacements, and extensions. However, as to the lien of any deed of
         trust or mortgage entered into after execution of this agreement,
         Tenant's right to quiet possession of the Premises shall not be
         disturbed if Tenant is not in default and so long as Tenant pays the
         Rent and observes and performs all of the provisions of this agreement,
         unless this agreement is otherwise terminated pursuant to its terms. If
         any mortgagee, trustee, or ground lessor elects to have this agreement
         placed in a security position prior to the lien of a mortgage, deed of
         trust, or ground lease, and gives written notice to Tenant, this
         agreement shall be deemed prior to that mortgage, deed of trust, or
         ground lease, of the date of recording.
33.      TENANT REPRESENTATIONS; CREDIT: Tenant warrants that all statements in
         Tenant's financial documents and rental application are accurate.
         Tenant authorizes Landlord and Broker(s) to obtain Tenant's credit
         report at time of application and periodically during tenancy in
         connection with approval, modification, or enforcement of this
         agreement. Landlord may cancel this agreement: (i) before occupancy
         begins, upon disapproval of the credit report(s); or (ii) at any time,
         upon discovering that information in Tenant's application is false. A
         negative credit report reflecting on Tenant's record may be submitted
         to a credit reporting agency, if Tenant fails to pay Rent or comply
         with any other obligation under this agreement.

                                    Landlord and Tenant acknowledge receipt of
                                    a copy of this page.
                                    Landlord's initials ( NCM by WPY ) ( WPY )
                                    Tenant's initials ( CTO ) (_____)
                                    --------------------------------------------
                                    Reviewed by
                                    Broker of Designee __________ Date__________
                                    --------------------------------------------
Commercial Lease Agreement (CL-11 Page 5 of 8)
<PAGE>

Premises 894 Faulstich Court, San Jose CA 95112-1361        Date________________

34.      DISPUTE RESOLUTION:
         A.       MEDIATION: Tenant and Landlord agree to mediate any dispute or
                  claim arising between them out of this agreement, or any
                  resulting transaction, before resorting to arbitration or
                  court action, subject to paragraph 34B(2) below. Paragraphs
                  34B(2) and (3) apply whether or not the arbitration provision
                  is initialed. Mediation fees, if any, shall be divided equally
                  among the parties involved. If for any dispute or claim to
                  which this paragraph applies, any party commences an action
                  without first attempting to resolve the matter through
                  mediation, or refuses to mediate after a request has been
                  made, then that party shall not be entitled to recover
                  attorney fees, even if they would otherwise be available to
                  that party in any such action. THIS MEDIATION PROVISION
                  APPLIES WHETHER OR NOT THE ARBITRATION PROVISION IS INITIALED.
         B.       ARBITRATION OF DISPUTES: (1) Tenant and Landlord agree that
                  any dispute or claim in Law or equity arising between them out
                  of this agreement or any resulting transaction, which is not
                  settled through mediation, shall be decided by neutral,
                  binding arbitration, including and subject to paragraphs
                  34B(2) and (3) below. The arbitrator shall be a retired judge
                  or justice, or an attorney with a least 5 years of real estate
                  transactional law experience, unless the parties mutually
                  agree to a different arbitrator, who shall render an award in
                  accordance with substantive California Law. In all other
                  respects, the arbitration shall be conducted in accordance
                  with Part III, Title 9 of the California Code of Civil
                  Procedure. Judgment upon the award of the arbitrator(s) may be
                  entered in any court having jurisdiction. The parties shall
                  have the right to discovery in accordance to the Code of Civil
                  Procedure ss.1283.05.
                  (2) EXCLUSIONS FROM MEDIATION AND ARBITRATION: The following
                  matters are excluded from Mediation and Arbitration hereunder:
                  (i) a judicial or non-judicial foreclosure or other action or
                  proceeding to enforce a deed of trust, mortgage, or
                  installment land sale contract as defined in Civil Code
                  ss.2985; (ii) an unlawful detainer action; (iii) the filing or
                  enforcement of a mechanic's lien; (iv) any matter that is
                  within the jurisdiction of a probate, small claims or
                  bankruptcy court; and (v) an action for bodily injury or
                  wrongful death, or for latent or patent defects to which Code
                  of Civil Procedure ss.337.1 or ss.337.15 applies. The filing
                  of a court action to enable the recording of a notice of
                  pending action, for order of attachment, receivership,
                  injunction, or other provisional remedies, shall not
                  constitute a violation of the mediation and arbitration
                  provision.
                  (3) BROKER: Tenant and Landlord agree to mediate and arbitrate
                  disputes or claims involving either or both Brokers, provided
                  either or both Brokers shall have agreed to such mediation or
                  arbitration, prior to, or within a reasonable time after the
                  dispute or claim is presented to Brokers. Any election by
                  either or both Brokers to participate in mediation or
                  arbitration shall not result in Brokers being deemed parties
                  to the agreement.
                           "NOTICE: BY INITIALING IN THE SPACE BELOW YOU ARE
                  AGREEING TO HAVE ANY DISPUTE ARISING OUT OF THE MATERS
                  INCLUDED IN THE `ARBITRATION OF DISPUTES' PROVISION DECIDED BY
                  NEUTRAL ARBITRATION AS PROVIDED BY CALIFORNIA LAW AND YOU ARE
                  GIVING UP ANY RIGHTS YOU MIGHT POSSESS TO HAVE THE DISPUTE
                  LITIGATED IN A COURT OR JURY TRIAL. BY INITIALING IN THE SPACE
                  BELOW YOU ARE GIVING UP YOUR JUDICIAL RIGHTS TO DISCOVERY AND
                  APPEAL, UNLESS THOSE RIGHTS ARE SPECIFICALLY INCLUDED IN THE
                  `ARBITRATION OF DISPUTES' PROVISION. IF YOU REFUSE TO SUBMIT
                  TO ARBITRATION AFTER AGREEING TO THIS PROVISION, YOU MAY BE
                  COMPELLED TO ARBITRATE UNDER THE AUTHORITY OF THE CALIFORNIA
                  CODE OF CIVIL PROCEDURE. YOUR AGREEMENT TO THIS ARBITRATION
                  PROVISION IS VOLUNTARY."
                           "WE HAVE READ AND UNDERSTAND THE FOREGOING AND AGREE
                  TO SUBMIT DISPUTES ARISING OUT OF THE MATTERS INCLUDED IN THE
                  `ARBITRATION OF DISPUTES' PROVISION TO NEUTRAL ARBITRATION."
                  Landlord's Initials _______, _______
                  Tenant's Initials _______, _______
35.      JOINT AND INDIVIDUAL OBLIGATIONS: If there is more than one Tenant,
         each one shall be individually and completely responsible for the
         performance of all obligations of Tenant under this agreement, jointly
         with every other Tenant, and individually, whether or not in
         possession.

                                    Landlord and Tenant acknowledge receipt of
                                    a copy of this page.
                                    Landlord's initials ( NCM by WPY ) ( WPY )
                                    Tenant's initials ( CTO ) (_____)
                                    --------------------------------------------
                                    Reviewed by
                                    Broker of Designee __________ Date__________
                                    --------------------------------------------
Commercial Lease Agreement (CL-11 Page 6 of 8)
<PAGE>

Premises 894 Faulstich Court, San Jose CA 95112-1361        Date________________

36.      NOTICE: Notices may be served by mail, facsimile, or courier at the
         following address or location, or at any other location subsequently
         designated:
<TABLE>
<CAPTION>
<S>     <C>
         Landlord: Noel C. McDermott and William P. Yost       Tenant: MicroTel International, Inc.
                   502 Village Circle                                  9485 Haven Avenue, Suite 100
                   Santa Cruz, CA 95060                                Rancho Cucamonga, CA 91730
         _______________________________________________       _____________________________________

         _______________________________________________       _____________________________________
</TABLE>

         Notice is deemed effective upon the earliest of the following: (i)
         personal receipt by either party or their agent; (ii) written
         acknowledgment of notice; or (iii) 5 days after mailing notice to such
         location by first class mail, postage pre-paid.
37.      WAIVER: The waiver of any breach shall not be construed as a continuing
         waiver of the same breach or a waiver of any subsequent breach.
38.      INDEMNIFICATION: Tenant shall indemnify, defend and hold Landlord
         harmless from all claims, disputes, litigation judgments and attorney
         fees arising out of Tenant's use of the Premises.
39.      OTHER TERMS AND CONDITIONS/SUPPLEMENTS: None
                                                -------------------------------
         ----------------------------------------------------------------------
         ----------------------------------------------------------------------
         ----------------------------------------------------------------------
         ----------------------------------------------------------------------
         The following ATTACHED supplements/exhibits are incorporated in this
         agreement: Exhibit A, B, C & D
         -----------------------------------------------------------------------
40.      ATTORNEY FEES: In any action or proceeding arising out of this
         agreement the prevailing party between Landlord and Tenant shall be
         entitled to reasonable attorney fees and costs for the non-prevailing
         Landlord or Tenant except as provided in paragraph 34A.
41.      ENTIRE CONTRACT: Time is of the essence. All prior agreements between
         Landlord and Tenant are incorporated in this agreement which
         constitutes the entire contract. It is intended as a final expression
         of the parties' agreement, and may not be contradicted by evidence of
         any prior agreement or contemporaneous oral agreement. The parties
         further intend that this agreement constitutes the complete and
         exclusive statement of its terms, and that no extrinsic evidence
         whatsoever may be introduced in any judicial or other proceeding, if
         any, involving this agreement. Any provision of this agreement that is
         held to be invalid shall not affect the validity or enforceability of
         any other provision in this agreement. This agreement shall be binding
         upon, and inure to the benefit of, the heirs, assignees and successors
         to the parties.
42.      BROKERAGE: Landlord and Tenant shall each pay to Broker(s) the fee
         agreed to, if any, in a separate written agreement. Neither Tenant nor
         Landlord has utilized the services of, or for any other reason owes
         compensation to, a licensed real estate broker (individual or
         corporate), agent, finder, or other entity, other than as named in this
         agreement, in connection with any act relating to the Premises,
         including, but not limited to, inquires, introductions, consultations,
         and negotiations leading to this agreement. Tenant and Landlord each
         agree to indemnify, defend and hold harmless the other, and the Brokers
         specified herein, and their agents, from and against any costs,
         expenses, or liability for compensation claimed inconsistent with the
         warranty and representation in this paragraph 42.
43.      AGENCY CONFIRMATION: The following agency relationships are hereby
         confirmed for this transactions:
         Listing Agent:______________________________ (Print Firm Name) is the
         agent of (check one):
         the Landlord exclusively; or both the Tenant and Landlord. Selling
         Agent:______________________________ (Print Firm Name)(if not same as
         Listing Agent) is the agent of (check one):
         the Tenant exclusively; or the Landlord exclusively; or both the Tenant
         and Landlord. Real Estate Brokers are not parties to the agreement
         between Tenant and Landlord.

                                    Landlord and Tenant acknowledge receipt of
                                    a copy of this page.
                                    Landlord's initials ( NCM by WPY ) ( WPY )
                                    Tenant's initials ( CTO ) (_____)
                                    --------------------------------------------
                                    Reviewed by
                                    Broker of Designee __________ Date__________
                                    --------------------------------------------
Commercial Lease Agreement (CL-11 Page 7 of 8)
<PAGE>

Premises 894 Faulstich Court, San Jose CA 95112-1361        Date________________

--------------------------------------------------------------------------------
Landlord and Tenant acknowledge and agree that Brokers: (i) do not guarantee the
condition of the Premises; (ii) cannot verify representations made by others;
(iii) will not verify zoning and land use restrictions; (iv) cannot provide
legal or tax advice; (v) will not provide other advice or information that
exceeds the knowledge, education or experience required to obtain a real estate
license. Furthermore, if Brokers are not also acting as Landlord in this
agreement, Brokers: (vi) do not decide what rental rate a Tenant should pay or
Landlord should accept; and (vii) do not decide upon the length or other terms
of tenancy. Landlord and Tenant agree that they will seek legal, tax, insurance,
and other desired assistance from appropriate professionals.
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
<S>     <C>

Tenant By: MicroTel International Inc. /s/ Carmine T. Oliva, CEO, Chairman & Pres.       Date   7/12/04
      --------------------------------------------------------------------------------         ---------
        MicroTel International Inc.
--------------------------------------------------------------------------------------------------------
(Print Name)
Address                                               City                 State          Zip
       ----------------------------------------------    ------------------     ----------   -----------

Tenant                                                                     Date
      ---------------------------------------------------------------------    -------------------------

(Print Name)
Address                                               City                 State          Zip
       ----------------------------------------------    ------------------     ----------   -----------

Landlord    Noel C. McDermott, By Warren P. Yost, Attorney-in-Fact   Date       7/12/04
         -----------------------------------------------------------     -------------------------------
                 (Owner or agent with authority to enter into this agreement)
Address  502 Village Circle                     City  Santa Clara       State    CA         Zip   95060
       -----------------------------------------    ----------------------------------------------------

Landlord    Warren P. Yost                                                     Date   7/12/04
         ----------------------------------------------------------------------    -----------
                 (Owner or agent with authority to enter into this agreement)
Address      10324 Miner Place                      City   Cupertino           State   CA     Zip  95014
       ---------------------------------------------    -----------------------     ----------   -------

Agency relationships are confirmed as above. Real estate brokers who are not
also Landlord in this agreement are not a party to the agreement between
Landlord and Tenant.

Real Estate Broker (Leasing Firm)
                                 ------------------------------------------------------------------------
By (Agent)                                                                        Date
          -----------------------------------------------------------------------       -----------------

Address                                                City                State        Zip
       ------------------------------------------------    ----------------     --------   -------------
Telephone                                             Fax
         --------------------------------------------    ---------------------------------------
E-mail
       --------------------------------------------------------------------------

Real Estate Broker (Leasing Firm)
                                 ------------------------------------------------------------------------
By (Agent)                                                                        Date
          -----------------------------------------------------------------------       -----------------

Address                                                City                State        Zip
       ------------------------------------------------    ----------------     --------   -------------
Telephone                                             Fax
         --------------------------------------------    ---------------------------------------
E-mail
       --------------------------------------------------------------------------
</TABLE>

                                    Landlord and Tenant acknowledge receipt of
                                    a copy of this page.
                                    Landlord's initials ( NCM by WPY ) ( WPY )
                                    Tenant's initials ( CTO ) (_____)
                                    --------------------------------------------
                                    Reviewed by
                                    Broker of Designee __________ Date__________
                                    --------------------------------------------
Commercial Lease Agreement (CL-11 Page 8 of 8)
<PAGE>

Premises 894 Faulstich Court, San Jose CA 95112-1361        Date________________

EXHIBIT A:  PROPERTY DESCRIPTION

Property:                  894 Faulstich Court
                           San Jose, CA 95112-1361

Description:               Manufacturing building
                           Building area: thirty thousand (30,000) square feet
                           Steel building construction Over fifteen (15) percent
                           build out Approximately forty-five (45) parking
                           spaces Situated on fee simple land

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Premises 894 Faulstich Court, San Jose CA 95112-1361        Date________________

EXHIBIT B:  RENEWAL OR EXTENSION TERMS

The lessee will have the right for three 5-year renewal options adjusted to
market rate at the time of each renewal with an identical rate adjuster each
month, as specified tin Exhibit C.

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Premises 894 Faulstich Court, San Jose CA 95112-1361        Date________________

EXHIBIT C:  BASE RENT

Seven (7) year, noncancelable lease, at a beginning rate of $0.90 per square
foot, plus any upward adjustment in the Federal Funds Discount Rate in effect at
the time of closing referenced to the Federal Reserve Discount Rate of one
percent (1%) in effect on the signing date of April 22, 2004 stated in the
Binding Agreement in Principle Regarding the Purchase of Outstanding Capital
Stock of Larus Corporation and Vista Corporation.

The lease is triple net and is adjusted as described following:

The portion of the monthly lease payment that is allocated by the lessor to
cover interest payments on the mortgage covering the facility (the "Interest
Component") will be subject to adjustment, upwards and/or downwards, at the
beginning of each month to reflect any changes in the financial index used by
the lessor's lender relating to the lessor's mortgage on the facility (the
"Index Rate") from the beginning of the prior monthly period. The maximum
adjustment in any given year shall be 1-1/2% with a maximum cumulative
adjustment over the term of the lease of 8%. No adjustment shall be made if such
adjustment would reduce the monthly square foot rental amount to an amount below
$0.90.

By way of example, if at the beginning of the second month, after the effective
date of the lease, the Index Rate has increased by 0.25% since the effective
date of the lease, the Interest Component portion of the lease rate would be
increased by 0.25% until the next adjustment, if any.

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Premises 894 Faulstich Court, San Jose CA 95112-1361        Date________________

EXHIBIT D:  TENANT IMPROVEMENTS

A Lessor leasehold improvement allowance of $11.00 per square foot.

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