Document:

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                                                                           LDA-3

                                   SUB-LEASE

                     No. 3 LOCKHART ROAD, WANCHAI, HONG KONG

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CONTENTS

1.   Premises

2.   Tenant's obligations
     2.1    Stamp duty and registration fee
     2.2    Rent
     2.3    Deposit
     2.4    Management fee and air-conditioning fee
     2.5    To pay outgoings
     2.6    Electricity and other utilities
     2.7    Cleansing and clearing drains
     2.8    Plans and specifications
     2.9    Interior of the Premises
     2.10   Indemnification of Landlord
     2.11   Good repair of lavatories and water apparatus
     2.12   Directory boards
     2.13   Cleaning contractor
     2.14   Precautions against storm and typhoon
     2.15   Non-interruption of fire fighting system
     2.16   Inspection
     2.17   Entry for repairs etc.
     2.18   Give notice of damage
     2.19   Installation of telephone cables
     2.20   Entry for installation
     2.21   User
     2.22   Manufacture or storage of goods
     2.23   Preparation of food and prevention of odours
     2.24   Sound or noise
     2.25   Not to misuse lavatories
     2.26   Alterations or additions
     2.27   Entrance doors locks bolts
     2.28   Removal of refuse and garbage
     2.29   Use of lifts
     2.30   Use of common areas
     2.31   Breach of Crown Lease
     2.32   No illegal or immoral use
     2.33   No subletting and assigning
     2.34   Non-domestic use
     2.35   Animals and pets
     2.36   Touting and soliciting for business
     2.37   No obstructions in passage
     2.38   Sign
     2.39   Offensive trade
     2.40   Breach of insurance policy
     2.41   Floor loading
     2.42   Yielding up premises
     2.43   Liabilities for invitees
     2.44   Compliance with building regulations
     2.45   Compliance with Ordinance etc.

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     2.46   Reserved rights
     2.47   Redevelopment
     2.48   Additional air-conditioning machine
     2.49   Air-conditioning services
     2.50   Cost of repairing or replacing air-conditioning units

3.   Landlord's obligations

4.   Express agreement
     4.1    Breach of this Sub-Lease
     4.2    Additional air-conditioning service
     4.3    Keep windows shut
     4.4    Obstructions to outside windows
     4.5    Consent from Head Landlord
     4.6    Breakdown of the lifts or air-conditioning system
     4.7    Insurance of the Premises
     4.8    Landlord's right to repair etc.
     4.9    Introduction of regulations

5.   Interruption of services
6.   Waiver
7.   Acceptance of rent
8.   Notice
9.   On expiry
10.  Distress of rent
11.  Abatement of rent
12.  Exclusions
13.  Full agreement
14.  Exclusion of appurtenant rights
15.  Observance of Head Lease
16.  No Key Money
17.  Gender

     First Schedule
     Second Schedule
     Third Schedule
     Fourth Schedule

     Appendix I   - Market Rent
     Appendix II  - Management Fee
     Appendix III - Air-conditioning Fee

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THIS SUB-LEASE is made the 8  day of May Two Thousand

BETWEEN the parties hereinafter more particularly described and set out in the
First Schedule hereto.

WHEREAS:

1.   By a lease dated                   made between The Boys' and Girls' Clubs
     Association of Hong Kong (hereinafter referred to as "THE HEAD LANDLORD")
     as landlord on the one part and the Landlord as tenant on the other part
     registered in the Land Registry by Memorial No.                   ,
     all those portions of the Building (as hereinafter defined) more
     particularly described and set out in the Second Schedule hereto
     (hereinafter referred to as "THE LEASED PROPERTY") were demised by the
     Head Landlord to the Landlord for the term stated therein. Particulars of
     the said lease (hereinafter called "THE HEAD LEASE") are set forth in the
     Third Schedule hereto.

2.   Clause 3(A) of the Head Lease stipulates (inter alia) that if the Landlord
     sub-leases the Leased Property demised thereunder or part thereof, it shall
     only sub-lease to sub-tenants of good business repute for use as offices.

3.   The Landlord and the Tenant hereby agree to enter into this Sub-Lease in
     respect of the premises ("the Premises") more particularly described in
     Part I of the Fourth Schedule hereto.

4.   Headings in this Sub-Lease are for ease of reference only and do not form
     part of this Sub-Lease.

5.   In this Sub-Lease, if the context permits or requires, words importing the
     singular number shall include the plural number and vice versa and words
     importing the masculine feminine or neuter gender shall include the others
     of them.

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WITNESSETH as follows:-

1.   Premises      Subject Always to the terms and provisions of the Head Lease,
                   the Landlord shall let and the Tenant shall take the
                   Premises hereinafter more particularly described and set out
                   in Part I of the Fourth Schedule hereto forming part of the
                   building (hereinafter referred to as "THE BUILDING") erected
                   on ALL THAT piece or parcel of ground situate lying and being
                   at No.3 Lockhart Road, Wanchai, Hong Kong and registered in
                   the Land Registry as Inland Lot No.7418 TOGETHER WITH the use
                   in common with the Head Landlord/Landlord and all others
                   having the like right of the entrances staircases landings
                   passages and lavatories in the Building in so far as the same
                   are necessary for the proper use and enjoyment of the
                   Premises except in so far as the Head Landlord may from time
                   to time restrict such use and together with the use in common
                   as aforesaid of the lift service and air-conditioning and
                   heating services in the Building (if any and whenever the
                   same shall be operating) for the term described in Part II of
                   the Fourth Schedule hereto yielding and paying therefor
                   throughout the said term such rental and management fee and
                   air-conditioning fee specified in Part III, Part IV and Part
                   V of the Fourth Schedule hereto which sums shall be payable
                   exclusive of rates and in advance clear of all deductions on
                   the first day of each calendar month upon and subject to the
                   following terms and conditions :-

2. Tenant's        The Tenant agrees with the Landlord as follows :-
   obligations

   Stamp duty      2.1    To pay to the Landlord's agent, Hsin Chong Real Estate
   and                    Agency Limited upon the signing hereof the
   registration           registration fee (if any) and half share of the stamp
   fee                    duty payable on this Sub-Lease payable by the Tenant.

   Rent            2.2    To pay the rent on the days and in the manner herein
                          provided for payment therefor.

   Deposit         2.3    (a) The Tenant shall on the signing hereof deposit
                          with the Landlord the sum referred to as the Deposit
                          in Part VI of the Fourth Schedule hereto ("the
                          Deposit") to secure the due observance and performance
                          by the Tenant of the agreements, stipulations,
                          obligations and conditions contained in this Sub-Lease
                          and on the part of the Tenant to be observed and
                          performed. The Deposit shall be held by the Landlord
                          throughout the currency of this Sub-Lease free of any
                          interest with the right for the Landlord (without
                          prejudice to any right or remedy hereunder) to deduct
                          therefrom the amount of any loss or damage sustained
                          by the Landlord as the result of any non-observance or
                          non-

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                          performance by the Tenant of any of the said
                          agreements, stipulations, obligations and conditions
                          (including but not limited to legal costs on a
                          solicitors-clients basis incurred for institution of
                          proceedings in this connection). In the event of any
                          deduction being made by the Landlord from the Deposit
                          in accordance herewith during the currency of this
                          Sub-Lease, the Tenant shall forthwith on demand by the
                          Landlord make a further deposit equal to the amount so
                          deducted and failure by the Tenant so to do shall
                          entitle the Landlord forthwith to reenter upon the
                          Premises and to determine this Sub-Lease as
                          hereinbefore provided.

                          (b)  Where under this Sub-Lease, the aggregate of
                          rental and management fee and air-conditioning fee
                          payable shall at any time exceed the amounts so
                          payable on the commencement of this Sub-Lease, the
                          Tenant shall forthwith pay to the Landlord such
                          further sums as will be necessary to maintain the
                          Deposit at an amount equivalent to the number of
                          months' rental, management fee and air-conditioning
                          fee as set out in Part VI of the Fourth Schedule.

                          (c)  Subject as aforesaid, the Deposit shall be
                          refunded to the Tenant by the Landlord without
                          interest within thirty (30) days after the expiration
                          or sooner determination of this Sub-Lease and delivery
                          of vacant possession to the Landlord or after
                          settlement of the last outstanding claim by the
                          Landlord against the Tenant for any of the agreements,
                          stipulations, obligations or conditions herein
                          contained and on the part of the Tenant to be observed
                          or performed whichever shall be the later.

   Management      2.4    In addition to the rent, the Tenant shall pay to the
   fee and air-           Landlord the management fee at the monthly rate set
   conditioning           out in Part IV of the Fourth Schedule hereto and
   fee                    air-conditioning fee at the monthly rate set out in
                          Part V of the Fourth Schedule hereto subject to
                          revision as from time to time by the Landlord.

   To pay          2.5    To pay and discharge upon demand all rates, taxes,
   outgoings              duties, charges, impositions and outgoings
                          whatsoever now or hereafter to be imposed or charged
                          by the Government of Hong Kong or other lawful
                          authority (Crown Rent and Property Tax excepted).
                          Without prejudice to the generality of this Clause 2.5
                          the Tenant shall pay all rates imposed on the Premises
                          in the first place to the Landlord who shall settle
                          the same with the Hong Kong Government and in the
                          event of the Premises not yet having been assessed to
                          rates the Tenant shall until such time as the Premises
                          are assessed to rates pay to the Landlord quarterly in
                          advance a sum equal to the rates which would be
                          charged by the Hong Kong Government for each quarter
                          on the basis of a rateable value equal to twelve
                          months' rent payable by the Tenant, on account of

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                          the Tenant's liability under this sub-clause.

   Electricity     2.6    To pay and discharge upon demand all deposits and
   and other              charges in respect of electricity (including but not
   utilities              limited to electricity consumed through the operation
                          of air-conditioning installed by the Tenant within the
                          Premises), telephone rental and other outgoings as may
                          be shown by or operated from the Tenant's own metered
                          supplies or by accounts rendered to the Tenant by the
                          appropriate utility companies in respect of all such
                          utilities consumed on or in the Premises.

   Cleansing       2.7    To pay on demand to the Landlord the costs incurred by
   and clearing           the Landlord in cleansing and clearing any of the
   drains                 drains of the Premises choked or stopped up owing to
                          negligence of the Tenant or its employees, invitees or
                          licensees.

   Plans and       2.8    (a)  To fit out the Premises at the Tenant's expense
   specifications              in accordance with such plans and specifications
                               as shall have been first submitted to and
                               approved in writing by the Landlord in a good and
                               proper workmanlike fashion and in all respects in
                               a style and manner appropriate to a first class
                               office building and so as to maintain the same
                               throughout the said term in good repair and
                               condition to the reasonable satisfaction of the
                               Landlord. Such fitting out shall include but
                               without limitation to the following :-

                               (i)   Connection and reticulation of all
                                     electrical wiring including wiring to light
                                     fittings together with control switching
                                     etc. within the Premises;

                               (ii)  All floor finishes and partitioning within
                                     the Premises provided that any partitioning
                                     installed by the Tenant within the Premises
                                     shall be dry partitioning only;

                               (iii) Any alteration to the sprinkler system
                                     necessitated by the Tenant's layout of the
                                     Premises the same to be in all respects in
                                     accordance with all permits and consents
                                     and in compliance with the requirements of
                                     the Fire Services Department;

                               (iv)  All installation of air-conditioning
                                     ducting within the Premises;

                               (v)   Internal decoration, furnishings and
                                     specialized Tenant's equipment;

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                           Provided :

                               (vi)  that the Tenant will use in connection with
                                     its fitting out and decoration and
                                     furnishing works only contractors or
                                     sub-contractors in respect of whom the
                                     prior approval in writing of the Landlord
                                     shall have been obtained or who shall be
                                     nominated by the Landlord IT BEING AGREED
                                     that in no circumstances shall any work be
                                     commenced or be permitted to be commenced
                                     by any contractor who shall not first have
                                     been approved in writing by the Landlord
                                     AND THAT in any event any and all work
                                     involving any alteration to or modification
                                     of or in any way associated with the
                                     sprinkler system, fire service installation
                                     system, mechanical and electrical system,
                                     the security system, the plumbing and
                                     drainage system and piping and the
                                     air-conditioning ducting, chilled water
                                     pipes and air conditioning controls shall
                                     be carried out only by contractors
                                     nominated by the Landlord and the Tenant
                                     shall indemnify the Landlord against all
                                     costs, losses, damages and claims which may
                                     arise in consequence of the approved works
                                     so carried out. All works have to be
                                     carried out in accordance with the FITOUT
                                     RULES to be issued by the Landlord from
                                     time to time and to be signed by the Tenant
                                     prior to commencement of Tenant's works and
                                     the Tenant will pay to the Landlord the
                                     sums set out in Clause 2.8 (e) hereof; and

                               (vii) that the Tenant will not cause or permit to
                                     be made any subsequent variation to the
                                     approved fitting out plans and
                                     specifications or to the approved interior
                                     design or layout of the Premises without
                                     the previous approval in writing of the
                                     Landlord and in the event of such approval
                                     being requested it shall be a condition
                                     precedent to the granting thereof that the
                                     Tenant shall pay to the Landlord any
                                     reasonable fees and/or costs properly
                                     incurred by the Landlord in consulting its
                                     architect and/or specialist consultants in
                                     respect of such variations.

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                          (b)  To install all wires pipes and cables and other
                               services serving the Premises in and through the
                               ducts trunkings and conduits in the Building
                               provided by the Landlord for such purposes and at
                               all times in accordance with the Landlord's
                               directions and not to install any such wires
                               pipes cables or other services without first
                               providing the Landord with full particulars and a
                               fully detailed plan and diagram of such intended
                               installation and obtaining the Landlord's written
                               consent in regard thereto.

                          (c)  To provide to the Landlord a full coloured
                               diagram of all electrical wiring to be installed
                               by the Tenant within or serving or connected to
                               the Premises and/or within the ducts, trunkings
                               or conduits provided by the Landlord within the
                               Building for the installation of electrical
                               and/or fibre-optical or other wires or cables or
                               means of passing receiving or transmitting
                               information and all telephone and other service
                               wires conduits and cables installed by or at the
                               order of the Tenant and to clearly label and in
                               accordance with any directions given by the
                               Landlord colourcode all such wires conduits and
                               cables to identify the same as being the Tenant's
                               and if required by the Landlord at the expiration
                               or sooner determination of this Sub-Lease at the
                               Tenant's expense to remove the same from all
                               ducts conduits or trunkings within the Building
                               taking care not to disturb damage or interfere
                               with any wires cables or other means of
                               communication belonging to the Head Landlord or
                               the Landlord or to other occupiers of any part or
                               parts of the Building that may have been
                               installed within any such ducts conduits or
                               trunkings and making good any damage caused by
                               the Tenant in so doing and the Tenant will
                               indemnify and hold the Landlord harmless against
                               any claim action or demand that may be brought by
                               any person suffering any loss or damage or
                               interference with business or inconvenience
                               caused by or arising from the Tenant's actions in
                               complying with its obligations hereunder.

                          (d)  In consideration of the Landlord approving the
                               fitting out requirements of the Premises, the
                               Tenant shall indemnify and keep indemnified the
                               Landlord against all actions, proceedings,
                               claims, costs and demands against or incurred by
                               the Landlord in respect of the fitting out or
                               reinstatement

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                               of the Premises to be let to the Tenant or in
                               respect of any breaches of the Landlord's fitting
                               out requirement by the Tenant.

                          (e)  To pay to the Landlord a plan approval fee set
                               out in Part VIII of the Fourth Schedule or of
                               such amount as the Landlord shall determine in
                               its absolute discretion from time to time during
                               the term hereby created for approving the
                               Tenant's fitting out plans and specifications and
                               inspecting the fitting out works carried or to
                               be carried out in the Premises.

                          (f)  No oral acknowledgement, representation or
                               warranty by the Landlord or its servants, workmen
                               or agents shall constitute the Landlord's consent
                               to the plans and specifications submitted by the
                               Tenant or the fitting out works carried or to be
                               carried out in the Premises by the Tenant unless
                               such consent shall be in writing.

   Interior of     2.9    To keep all the interior of the Premises including the
   the Premises           flooring and interior plaster or other finishing
                          material or rendering to walls, floors and ceilings
                          and the Landlord or the Head Landlord's fixtures and
                          fittings therein including (without limitation) all
                          doors, windows, electrical installations and wiring,
                          light fittings, suspended ceilings, fire fighting
                          apparatus, and all waste drain water and other pipes
                          and sanitary apparatus and fittings therein and all
                          painting papering and decoration thereof in good,
                          clean, tenantable, substantial and proper repair and
                          condition and as may be appropriate from time to time
                          painted and decorated to the satisfaction of the
                          Landlord and the Head Landlord and so to maintain the
                          same at the expense of the Tenant. In particular, but
                          without in any way limiting the foregoing :-

                          (a)  to pay or reimburse to the Landlord the cost of
                               replacing all broken and damaged windows glass
                               irrespective of the cause of such breakage or
                               damage;

                          (b)  to repair or replace, if so required by the
                               appropriate authority under the terms of
                               Electricity Supply Ordinance or any statutory
                               modification or re-enactment thereof or any
                               Orders or Regulations made thereunder, all the
                               electrical wiring installations and fittings
                               installed by the Tenant within the Premises;

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                          (c)  to reimburse to the Landlord the cost of
                               replacing any damaged, broken defective or burned
                               out electric light bulbs, tubes and globes in the
                               Premises which may be provided by the Landlord.

                          (d)  at the expense of the Tenant to replace from time
                               to time all Landlord's fixtures and fittings and
                               appurtenances in the Premises which may be or
                               become beyond repair at any time; and

                          (e)  at the expiration or sooner determination of this
                               Sub-Lease, to deliver up the Premises and all
                               fittings, fixtures and additions therein and
                               thereto other than tenant's fixtures and fittings
                               to the Landlord in good clean and tenantable
                               condition and repair in accordance with its
                               covenant to repair contained herein.

   Indemnification 2.10   To be wholly responsible for any loss damage or injury
   of Landlord            caused to any person whomsoever or to any property
                          whatsoever directly or indirectly through the
                          defective or damaged condition or operation of any
                          part of the interior of the Premises or any machinery
                          or plant or any fixtures or fittings or wiring or
                          piping therein for the repair of which the Tenant is
                          responsible hereunder or in any way caused by or owing
                          to the spread of fire smoke or fumes or the leakage or
                          overflow of water of whatsoever origin from the
                          Premises or any part thereof or through the act,
                          default or neglect of the Tenant, its servants,
                          agents, contractors, licensees, partners or customers
                          and to make good the same by payment or otherwise and
                          to indemnify the Landlord against all costs, claims,
                          demands, actions and legal proceedings whatsoever made
                          upon the Landlord by any person in respect of any
                          loss, damage or injury as aforesaid and all costs and
                          expenses incidental thereto.

   Good repair     2.11   To maintain all lavatories and sanitary and water
   of lavatories          apparatus located within the Premises (or elsewhere if
   and water              used exclusively by the Tenant, its employees,
   apparatus              invitees and licensees) in good clean and tenantable
                          state and in proper repair and condition at all times
                          during the said Term to the satisfaction of the
                          Landlord and in accordance with the Regulations of the
                          Public Health or other Government Authority concerned.

   Directory       2.12   To pay the Landlord or its agents immediately upon
   boards                 demand the cost of affixing, repairing, altering or
                          replacing as necessary the Tenant's name on the
                          directory boards (if any) provided by the

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                          Landlord. The Tenant's name to be appeared on the
                          directory boards shall strictly be in accordance with
                          that appearing in this Sub-Lease unless prior written
                          consent to name otherwise has first been obtained from
                          the Landlord.

   Cleaning        2.13   To keep the Premises at all times in clean state and
   contractor             condition and for the better observance hereof the
                          Tenant shall only employ as cleaners of the
                          Premises such cleaning contractor appointed or
                          nominated by the Landlord and such cleaning contractor
                          shall be employed at the expense of the Tenant
                          PROVIDED ALWAYS that the Landlord shall not be liable
                          for any misconduct or negligent acts or defaults of
                          the said cleaning contractor.

   Precautions     2.14   To take all reasonable precautions to protect the
   against storm          interior of the Premises from storm or typhoon damages
   and typhoon            and to replace all broken or damaged window glass in
                          the Premises.

   Non -           2.15   To ensure at all times that all fire alarms, fire
   interruption           fighting equipment, roller shutters and other
   of fire                equipment for security of fire purpose provided by the
   fighting system        Landlord shall not be disrupted, interrupted, damaged
                          or caused to be defective through the act,
                          default or neglect of the Tenant, his servants,
                          agents, licensees or customers.

   Inspection      2.16   To permit the Landlord, the Head Landlord or its
                          respective agents with or without workmen or others
                          and with or without appliances at all reasonable times
                          upon reasonable prior notice (expect in the case of an
                          emergency) to enter upon the Premises to view the
                          condition thereof and to take inventories of the
                          Landlord's fixtures and fittings therein and the
                          Tenant shall proceed diligently to make good all
                          defects and wants of repair there found for the repair
                          of which the Tenant may be liable under other
                          provisions of this Sub-Lease within one calendar month
                          from the receipt of written notice from the Landlord
                          to that effect.

   Entry for       2.17   If the Tenant shall at any time make default in the
   repairs etc.           performance of any of the agreement herein contained
                          for or relating to the repair, decoration,
                          preservation, protection or condition of the Premises,
                          the Tenant shall permit the Landlord and all persons
                          authorized by the Landlord to enter upon the Premises
                          and repair, decorate, preserve, protect and make good
                          the same at the expense of the Tenant (but no such
                          entry, repair, decoration, preservation, protection
                          and making good shall prejudice the right of re-entry
                          under the provisions hereinafter contained) and to the
                          Landlord

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                          on demand on a full indemnity basis the cost of such
                          repair, decoration, preservation, protection and
                          making good including surveyor's and solicitors' fees
                          and charges incurred by the Landlord in respect
                          thereto.

   Give notice     2.18   To give notice to the Landlord or its agents of any
   of damage              damage that may be suffered to the Premises and of any
                          accident to or defects in the water pipes,
                          electrical wiring or fixtures or other facilities
                          provided by the Landlord Provided Always that the
                          said facilities of and in the Premises shall be
                          maintained at the Tenant's cost.

   Installation    2.19   Subject to Clause 2.8 (a)(vi) hereof, the Tenant shall
   of telephone           make its own arrangements with regard to the
   cables                 installation of telephones or other communication
                          systems in the Premises, but the installation of
                          telephone and communication lines outside the Premises
                          must be in the common ducting provided in the Building
                          for that purpose and in all respects in accordance
                          with the Landlord's directions.

   Entry for       2.20   To permit the Landlord, or their respective agents and
   installation           workmen to enter into the Premises at all reasonable
                          times during the day upon prior reasonable
                          notice to the Tenant (except in the case of an
                          emergency) for the purpose of carrying out any
                          installation works or other works including the
                          installation of air-conditioning ducts, supply
                          grilles, return grilles or exhaust grilles and of any
                          dilapidation to carry out repairs or other works
                          where the Tenant shall have failed so to do to carry
                          out any works, provide any service or carry out the
                          Landlord's obligations under this Sub-Lease and for
                          the purpose of security and fire-fighting but causing
                          as little disturbance to the Tenant as possible and
                          making good at the Landlord's own costs any damage
                          caused thereby (except in emergency or where entry was
                          made because of the Tenant's refusal to allow the
                          Landlord access to the Premises).

   User            2.21   To use the Premises as office premises only for the
                          purpose of the business of the Tenant and for no other
                          purpose whatsoever without the express permission of
                          the Landlord and the Head Landlord in writing.

   Manufacture     2.22   Not to use or permit or suffer the Premises to be used
   or storage             for the purpose of the production or manufacture of
   of goods               goods and merchandise or for the storage of goods or
                          merchandise other than in small quantities consistent
                          with the nature of the Tenant's

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                          trade or business by way of samples and exhibits or to
                          keep or store any hazardous goods within the meaning
                          of the Dangerous Goods Ordinance and the Reglations
                          thereunder or any statutory modification or
                          re-enactment thereof.

   Preparation     2.23   Not to prepare or permit or suffer to be prepared any
   of food and            food in the Premises or cause or permit any offensive
   prevention             or unusual odours to be produced upon, permeated
   of odours              through or emanated from the Premises.

   Sound or        2.24   Not to cause or suffer or permit to be caused on or in
   noise                  the Premises any excessive or unreasonable sound or
                          noise (including sound produced by broadcasting from
                          television, radio and any apparatus or instrument
                          capable of producing or reproducing music and sound)
                          or other acts in or on the Premises which is or are or
                          may be a nuisance, annoyance or cause damage to the
                          Landlord, or to the tenants or occupiers of adjacent
                          or neighbouring premises.

   Not to misuse   2.25   Not to use or permit or suffer to be used any lavatory
   lavatories             facilities whether shared with other tenants or
                          occupiers of the Building or reserved exclusively for
                          the use of the Tenant for any purpose other than that
                          for which they are intended and not to throw or permit
                          or suffer to be thrown into any W.C. pan, urinal,
                          basin sink or other lavatory fitting any foreign or
                          deleterious substance of any kind and to pay to the
                          Landlord on demand the cost of any breakage, blockage
                          or damage resulting from a breach of this provision.

   Alterations     2.26   Not to make or permit or suffer to be made any
   or additions           alterations in or additions to the Premises or to the
                          electrical wiring installation or other Landlord's
                          fixtures or to install any plant, apparatus or
                          machinery therein without first having obtained the
                          written consent of the Landlord therefor or cut, maim
                          or injure or permit or suffer to be maimed or injured
                          any doors, windows, walls structural members or other
                          fabric thereof and the Tenant shall indemnify the
                          Landlord of any costs (if any) involved in obtaining
                          the consent of the Head Landlord.

   Entrance        2.27   Not to change or in any way vary the entrance doors
   doors locks            provided or approved by the Landlord for access to the
   bolts                  Premises (if any) and not to install locks bolts or
                          other fittings to the said entrance doors additional
                          to those supplied or approved by the Landlord or in
                          any

                                       13
<PAGE>

                          way cut or alter the existing locks, bolts, entrance
                          doors and fittings on the entrance doors without
                          having first obtained the written licence and consent
                          of the Landlord (such written licence shall not be
                          unreasonably withheld by the Landlord having regard to
                          the nature of the Tenant's business).

   Removal of      2.28   To be responsible for the removal of refuse and
   refuse and             garbage from the Premises to such location as shall be
   garbage                specified by the Landlord from time to time and to use
                          only that type of refuse container as is specified by
                          the Landlord from time to time and in the event of
                          the Landlord providing a collection service for refuse
                          and garbage the same shall be used by the Tenant to
                          the exclusion of any other similar service and the use
                          of such service provided by the Landlord shall be at
                          the sole costs of the Tenant.

    Use of         2.29   (a)  To take or allow delivery of furniture, fixtures
    lifts                      bulky items of goods in and out of the Building
                               and/or the Premises only at such times and
                               through such entrances and by such lifts as
                               shall be designated by the Landlord for this
                               purpose from time to time.

                          (b)  No bulky articles of any kind (including, but
                               without in any way limiting the generality of the
                               foregoing, food and drink trays and carriers)
                               shall be brought into any passenger lift.

                          (c)  Not without the prior written consent of the
                               Landlord to bring or permit or suffer to be
                               brought any equipment, apparatus, machinery or
                               goods to any lift(s) of the Building in excess of
                               the loading capacity of such lift(s). All
                               expenses incurred by the Landlord in the
                               adjustment of the lift(s) for delivery of heavy
                               or bulky equipment, apparatus, machinery, goods
                               or materials as may be requested by the Tenant
                               shall be wholly borne by the Tenant.

   Use of          2.30   (a)  Not to damage mark or deface or permit or suffer
   common                      to be damaged marked or defaced any structures,
   areas                       fixtures, decorations, installations, outside
                               and/or of the Premises including air-conditioning
                               units, cloakroom, service pantries, halls
                               passages, staircases, drainage wells, walls,
                               ceilings, passageways, public areas and to pay on
                               demand to the Landlord the cost and expenses
                               incurred by the Landlord in repairing making good
                               such damage or cleaning the same.

                          (b)  Not to lay install affix or attach any wiring,
                               cables or other article or thing in or upon any
                               of the entrances, staircases, landings,
                               passageways, lobbies or public areas.

                                       14
<PAGE>

   Breach of       2.31   To be liable for the consequences of any breach of
   Crown Lease            local Ordinances, Orders in Council, Regulations or
                          By-laws by any occupier of or visitor to the Premises
                          and not to cause suffer or permit any contravention of
                          the provisions of Crown Lease under which the Head
                          Landlord holds the Premises and to indemnify the
                          Landlord against any such breach.

   No illegal      2.32   The Tenant shall not cause, permit or suffer any part
   or immoral use         of the Premises to be used for gambling or for any
                          illegal, immoral or improper purposes or so as to
                          cause nuisance, annoyance inconvenience or damage to
                          the occupiers of adjacent or neighbouring premises.

   No subletting   2.33   (a)  Not to enter into any declaration of trust of the
   and assigning               Premises nor to assign, underlet or otherwise
                               part with the possession of the Premises or any
                               part thereof in any way whether by way of
                               sub-letting, lending, sharing or other means
                               whereby any person or persons not a party
                               to this Sub-Lease shall obtain the use or
                               possession of the Premises or any part thereof
                               irrespective of whether any rental or other
                               consideration is given for such use or possession
                               and in the event of any such transfer,
                               sub-letting, sharing, assignment or parting with
                               the possession of the Premises (whether for
                               monetary consideration or not), this Sub-Lease
                               shall absolutely determine and the Tenant shall
                               forthwith vacate the Premises on notice to that
                               effect from the Landlord.

                          (b)  This Sub-Lease shall be personal to the Tenant
                               named in the First Schedule hereto and without in
                               any way limiting the generality of the foregoing,
                               the following acts and events shall unless
                               approved in writing by the Landlord be deemed to
                               be breaches of this Clause :-

                               (i)   In the case of a tenant which is a
                                     partnership the taking in of one or more
                                     new partners whether on the death or
                                     retirement of an existing partner or
                                     otherwise;

                              (ii)   In the case of a tenant who is an
                                     individual (including a sole surviving
                                     partner of a partnership tenant) the death,
                                     insanity or disability of that individual
                                     to the intent that the right to use,
                                     possess, occupy or enjoy the Premises or
                                     any part thereof shall vest in the
                                     executors, administrators, personal
                                     representatives, next of kin, trustee or
                                     committee of any such individual;

                                       15
<PAGE>

                               (iii) In the case of a tenant which is a
                                     corporation any take-over, reconstruction,
                                     amalgamation, merger voluntary liquidation
                                     or change in the person or persons who owns
                                     or own a majority of its voting shares or
                                     who otherwise has or have effective control
                                     thereof;

                               (iv)  The giving by the Tenant of a power of
                                     attorney or similar authority whereby the
                                     donee of the power obtains the right to
                                     use, possess, occupy or enjoy the Premises
                                     or any part thereof or does in fact use,
                                     possess, occupy or enjoy the same;

                               (v)   The change of the Tenant's business name
                                     without the previous written approval of
                                     the Landlord which shall not be
                                     unreasonably withheld if the change of the
                                     Tenant's business name does not in the
                                     opinion of the Landlord conflict with or
                                     prejudice the business or reputation or
                                     other interests of the Landlord or of any
                                     associated company of the Landlord;

                               PROVIDED that the sharing of the Premises as
                               licensee(s) only with a company which is and
                               remains at all times a subsidiary of the Tenant
                               as defined in Section 2(4) of the Companies
                               Ordinance or is an associated company of the
                               Tenant which is for the purpose of this Agreement
                               shall mean a company in which the Tenant holds or
                               beneficially owns at least 20% of the issued
                               share capital shall not be a breach of this
                               Clause Provided That the Tenant provides full
                               particulars to the Landlord of such sharing and
                               of the subsidiary or associated company of the
                               Tenant concerned and Provided That such sharing
                               or occupation is terminated forthwith in the
                               event that such company ceases to be a subsidiary
                               or associated company of the Tenant as so
                               defined.

   Non-            2.34   Not to use or permit or suffer the Premises or any
   domestic               part thereof to be used as sleeping quarters or as
   use                    domestic premises within the meaning of the Landlord
                          and Tenant (Consolidation) Ordinance or similar
                          legislation for the time being in force nor to allow
                          any person to remain in the Premises overnight.

                                       16
<PAGE>

   Animals and     2.35   Not to keep or permit or suffer to be kept any animals
   pets                   or pets inside the Premises and to take all such step
                          and precautions to the satisfaction of the Landlord to
                          prevent the Premises or any part thereof from becoming
                          infested by termites, rats, mice, cockroaches or any
                          other pests or vermin.

   Touting and     2.36   Not to permit any touting or soliciting for business
   soliciting for         or distributing of any pamphlets, notices or
   business               advertising  matter to be conducted outside or near
                          the Premises or in any part of the Building by any of
                          the Tenant's servants, agents or licensees without the
                          prior written approval from the Landlord.

   No              2.37   Not to place or leave or (so far as may be in its
   obstructions           power) suffer or permit to be placed or left any boxes
   in passage             furniture articles or rubbish in the entrance or any
                          of the staircases passages or landings of the Building
                          used in common with the Landlord and/or other tenants
                          or the Head Landlord or otherwise encumber the same.

   Sign            2.38   Not to affix or put up or display any signboard, sign,
                          decoration, or other thing whatsoever outside the
                          Premises or on any door, wall or window except with
                          the written approval of the Landlord. The Landlord
                          shall have absolute discretion in granting or refusing
                          such approval and any approval to be granted shall be
                          subject to such conditions as the Landlord may think
                          fit. The Landlord shall have the right to remove at
                          the cost and expense of the Tenant any signboard,
                          sign, decoration or thing which shall be affixed, put
                          up or displayed without the prior approval of the
                          Landlord.

   Offensive       2.39   Not to use the Premises as a laboratory or workshop
   trade                  nor for any noisy noxious or offensive trade business
                          or occupation nor for the carrying on of any vocation
                          which may be calculated to attract to the Building or
                          any part thereof persons of any undesirable character.

   Breach of       2.40   Not to cause or suffer or permit to be done any act or
   insurance              thing whereby the policy or policies of insurance on
   policy                 the Premises or the whole or any part of the Building
                          against damage by fire or liability to third parties
                          for the time being subsisting may become void or
                          voidable or whereby the rate of premium or premiums
                          thereon may be increased, and to repay to the Landlord
                          on demand all sums paid by the Landlord by way of
                          increased premium or premiums thereon and all expenses
                          incurred by the Landlord in and about any renewal of
                          such policy or policies rendered necessary by a breach
                          of this Clause 2.40.

                                       17
<PAGE>

   Floor           2.41   Not without the previous written consent of the
   loading                Landlord to install or permit or suffer to be
                          installed any equipment apparatus or machinery which
                          imposes a weight on any part of the flooring of the
                          Premises in excess of the loading for which the floor
                          is designed. The Landlord shall be entitled to
                          prescribe the maximum weight and permitted locations
                          of safes and other heavy equipment which must be
                          placed so as to distribute their weight. Business
                          machines and mechanical equipment approved by the
                          Landlord shall be located and maintained by the Tenant
                          at the Tenant's expense in settings sufficient in the
                          Landlord's judgment to absorb and prevent vibration
                          noise and annoyance to occupiers of other portions of
                          the Building.

   Yielding up     2.42   To yield up the Premises quietly at the expiration or
   premises               sooner determination of the term in good clean
                          substantial and tenantable repair and condition AND
                          thereupon to surrender to the Landlord all keys
                          leading to all parts of the Premises and to remove at
                          the Tenant's own expense all lettering characters from
                          all the doors, walls, or windows of the Premises,
                          fixtures, fittings, additions, partitions, floor
                          coverings, erections, and alterations made or
                          installed by the Tenant whether during the term hereof
                          or at any time prior thereto upon or in the Premises
                          and to reinstate restore and make good any damage
                          caused by such removal or reinstatement PROVIDED that
                          the Tenant's obligations relating to removal or
                          reinstatement under this Clause 2.42 may be modified
                          or varied by the Landlord notifying the Tenant in
                          writing that the Landlord proposes without payment of
                          any compensation to retain all or any of the said
                          fixtures, fittings, additions, partitions, floor
                          coverings, erections and alterations which the Tenant
                          is otherwise liable hereunder to remove, but subject
                          to this proviso, the Tenant shall reinstate, restore
                          or make good the Premises or any part thereof
                          requiring to be reinstated, restored or made good and
                          in the event of the Tenant failing so to do the Tenant
                          shall on demand pay to the Landlord the cost of such
                          removal, reinstatement, restoration or making good.

   Liabilities     2.43   To be liable for any act default or negligence of the
   for invitees           Tenant its agents, servants, workmen, employees,
                          customers, visitors, invitees or licensees in respect
                          of the use of the Premises and to indemnify the
                          Landlord against all actions, proceedings, costs,
                          claims, demands, expenses or liability to any third
                          party in connection therewith.

   Compliance      2.44   To observe obey and comply with all rules and
   with building          regulations relating to the Building from time to time
   regulations            adopted by the Head Landlord and/or the Landlord and/
                          or their respective agents. The said rules and
                          regulations may be altered or added to by the Landlord
                          and/or the Head Landlord at any time from time to time
                          on giving written notice to the Tenant at the
                          Premises.

                                       18
<PAGE>

   Compliance      2.45   To obey and comply with and to indemnify the Landlord
   with                   against the breach of any Ordinances, Orders in
   Ordinance              Council, regulations or by-laws, rules and requirement
   etc.                   of any Governmental or other competent authority
                          (including but not limited to the Fire Services
                          Department and Buildings Ordinance Office) relating to
                          any fitting out work approved to be carried out
                          pursuant to the terms of this Sub-Lease and/or the use
                          and occupation of the Premises or any part thereof.

Reserved           2.46   (a)  The Head Landlord and the Landlord may from time
Rights                         to time improve, extend, add to or reduce the
                               Building or in any manner whatsoever and to alter
                               or deal with the Building (other than the
                               Premises) Provided always that in exercising such
                               right, the Landlord will endeavour to cause as
                               little inconvenience to the Tenant as is
                               practicable in the circumstances and make good
                               any damage caused to the Premises within a
                               reasonable period of time.

                          (b)  The Landlord reserves the right to name the
                               Building with any such name or style as it is its
                               sole discretion may determine without prior
                               notice to the Tenant and at any time and from
                               time to time to change, alter, substitute or
                               abandon any such name without thereby becoming
                               liable to compensate the Tenant for any loss
                               expense or inconvenience caused to the Tenant as
                               a consequence thereof Provided That the Landlord
                               shall give the Tenant and the postal and other
                               relevant government authorities not less than one
                               month's notice of its intention to change the
                               name of the building.

   Redevelop-      2.47   If the Landlord shall be informed by the Head Landlord
   ment                   that the that the Head Landlord wishes to
                          demolish, redevelop or refurbish the Building or any
                          part affecting the Premises, the Landlord may give at
                          least 6 months' written notice to the Tenant to
                          terminate this Sub-Lease without prejudice to the
                          accrued liabilities of either party.

   Additional      2.48   Not to install any air-conditioning machinery without
   air-                   the prior consent in writing of the Landlord and the
   conditioning           Landlord shall have absolute discretion in giving such
   machine                consent.

   Air-            2.49   The Landlord reserves the right to change the
   conditioning           operating hours of the central air-conditioning system
   services               as set out in Part VII of the Fourth Schedule hereto.

                                       19
<PAGE>

   Cost of         2.50   To reimburse to the Landlord the cost of repairing or
   repairing or           replacing any air-conditioning units or other part of
   replacing air-         the air-conditioning apparatus or installation within
   conditioning           the Premises which is damaged or rendered defective
   units                  unless the Tenant can prove the defect or damaged
                          condition hereinbefore referred to was due to the
                          negligence of the Landlord, its contractors servants
                          or agents or to normal fair wear and tear.

3. Landlord's      The Landlord agrees with the Tenant as follows :-
   obligations

                   3.1    To permit the Tenant (duly paying the rent, rates and
                          management fee and air-conditioning fee and observing
                          and performing the agreements and obligations herein
                          contained) to have quiet possession and enjoyment of
                          the Premises during the term hereby created without
                          any lawful interruption by the Landlord or any person
                          lawfully claiming under or through or in trust for the
                          Landlord.

                   3.2    To pay the rent reserved by the Head Lease and to
                          observe and perform the terms and agreements of Head
                          Lease on the part of the Landlord except in so far as
                          the same are within the responsibility of the Tenant
                          hereunder.

4. Express         It is hereby expressly agreed and declared as follows :-
   agreement

   Breach of       4.1    If the rent, rates, management fee and air-
   this Sub-              conditioning fee or the sums payable hereunder or any
   Lease                  part thereof be unpaid (whether formally demanded or
                          not) for a period of fifteen (15) days next after any
                          of the days on which the same ought to have been paid
                          or if there shall be any breach or non-performance of
                          any of the stipulations, conditions and agreements
                          herein contained and on the part of the Tenant to be
                          observed or performed or if the Tenant shall become
                          bankrupt or being a corporation go into liquidation
                          (save for the purposes of amalgamation, merger or
                          reconstruction) or if any petition shall be presented
                          for the winding up of the Tenant or if a receiver
                          and/or manager shall be appointed over the whole or
                          any part of the property, assets or undertaking of the
                          Tenant or if the Tenant shall otherwise become
                          insolvent or make any composition or arrangement with
                          creditors or shall any execution be levied upon the
                          Premises or otherwise on the Tenant's goods or if the
                          Tenant shall be struck off from the Register of
                          Companies or shall be dissolved or otherwise cease to
                          exist under the laws of the country or state of its
                          incorporation then and in any such case the Landlord
                          may re-enter on the Premises or any part thereof in
                          the name of the whole whereupon this Sub-Lease shall
                          absolutely cease and determine but without prejudice
                          to any other remedy of the Landlord in respect of any
                          antecedent breach of any of the covenants or
                          conditions contained in this Sub-Lease and

                                       20
<PAGE>

                          notwithstanding that it shall have accepted rent or
                          done or omitted any other act while knowing of the
                          event giving rise to the right of forfeiture. All
                          costs and expenses incurred by the Landlord in
                          demanding payment of the rent and other charges
                          arising out of this Clause 4.1 shall be paid by the
                          Tenant and shall be recoverable from it as a debt or
                          be deductible by the Landlord from any deposit held by
                          the Landlord hereunder.

   Additional      4.2    If the Tenant shall require air-conditioning services
   air-                   to be supplied to the Premises outside the service
   conditioning           hours set forth in the Fourth Schedule hereto, the
   service                Tenant shall give reasonable advance notice to the
                          Landlord of the Tenant's requirement and the Tenant
                          shall pay to the Landlord on demand such amount as
                          shall be sufficient to cover the operation and
                          electricity consumption costs involved in running the
                          main air-conditioning plant during such extended hours
                          such costs to be computed by the Landlord whose
                          computation of such costs (save for manifest error)
                          shall be conclusive and binding on the Tenant.

   Keep            4.3    Upon air-conditioning being supplied to the Premises
   windows                by the Landlord, the Tenant agrees to keep all the
   shut                   windows and doors closed while the air-conditioning
                          ventilation is in operation and the Landlord shall
                          have the right to send a representative to close the
                          same for the Tenant should it be found that the Tenant
                          does not comply with the notice to that effect of the
                          Landlord and the persistent breach by the Tenant of
                          this Clause 4.3 is a breach of the terms of this
                          Sub-Lease justifying the Landlord to exercise the
                          rights of re-entry or other remedies hereunder.

   Obstructions    4.4    Not to block up, darken or obstruct or obscure any of
   to outside             the windows or lights belonging to the Premises.
   windows

   Consent from    4.5    If the Tenant requests the consent of the Landlord in
   Head                   connection with anything contained in this Sub-Lease
   Landlord               which also requires consent under the Head Lease and
                          where the Landlord shall apply for the like consent
                          from the Head Landlord under the terms of the Head
                          Lease, the Tenant shall reimburse to the Landlord any
                          sums incurred by the Landlord in obtaining or
                          requesting the Head Landlord's consent, if any.

                                       21
<PAGE>

   Breakdown       4.6    The Landlord shall not in any circumstances be liable
   of the lifts           to the Tenant for any defect in or breakdown of the
   or air-                lifts or air conditioning system nor shall the rent or
   conditioning           the management fee or air-conditioning fee or any
   system                 other sums of money agreed to be paid hereunder abate
                          or cease to be payable on account thereof Provided
                          that if the air-conditioning system shall wholly
                          breakdown or cease to operate for any period of
                          twenty-one or more consecutive days, the
                          air-conditioning fee, but not the rent or the
                          management fee or any other sums of money agreed to be
                          paid hereunder, shall cease to be payable from the
                          first day of the subsequent calendar month after the
                          end of such period of twenty-one consecutive days
                          until the air-conditioning system again commences
                          operating.

   Insurance of    4.7    The Tenant shall insure and keep insured the Premises
   the Premises           to the full value thereof against loss and damage by
                          fire caused by the Tenant's negligence and upon the
                          request of the Landlord or his agent to produce the
                          policy of such insurance and the receipt for the last
                          premium and to cause all sums received in respect of
                          such insurance to be forthwith laid out and expended
                          in rebuilding or repairing or otherwise reinstating
                          the Premises in accordance with the Landlord's
                          instructions and to make up any deficiency in such
                          sums out of his own moneys.

   Landlord's      4.8    The Landlord shall have the right at any time and from
   right to repair        time to time during the term hereof carry out or cause
   etc.                   to be carried out (in manner as the Landlord may in
                          its absolute discretion deem fit) any repair,
                          maintenance, building, decoration, refurbishing or
                          renovation work to the Building or any part thereof
                          including but not limited to the Building's external
                          appearances and has the right to erect scaffolding for
                          any purpose in connection therewith notwithstanding
                          that such scaffolding may temporarily restrict the
                          access to or use and enjoyment of the Premises. The
                          Tenant hereby expressly agrees that Provided that such
                          repair, maintenance, building, decoration,
                          refurbishing or renovation work shall not wholly
                          deprive the Tenant of the use of the Premises, the
                          Landlord shall not be liable to the Tenant in any
                          respect for any loss or damages whatsoever caused by
                          such work and/or in consequence of such work and the
                          rent hereby agreed to be paid, the management fee and
                          the air-conditioning fee and/or any other sums of
                          money agreed to be paid hereunder or any part thereof
                          shall

                                       22
<PAGE>

                          continue to be payable by the Tenant to the Landlord
                          without any deduction whatsoever. In the event of any
                          safety measures or works required to be carried out or
                          installed in or at the Premises or any part or parts
                          thereof as a result of such work aforesaid, the Tenant
                          shall not object to such safety measures or works and
                          shall allow the Landlord or its agents or
                          representatives or workmen to have access to the
                          Premises for the purposes of carrying out or
                          installing the same at or in the Premises or any part
                          or parts thereof without any claim for loss or damages
                          whatsoever against the Landlord.

   Introduction    4.9    The Landlord shall be entitled from time to time and
   of regulations         by notice in writing to the Tenant to make, introduce
                          and subsequently amend, adopt or abolish if necessary
                          such regulations as it may, reasonably consider
                          necessary for the proper operation and maintenance of
                          the Building.

5. Interruption    The Landlord shall not be responsible for any loss, accident
   of service      or damage sustained at or originating from the Building nor
                   shall the Tenant have any claim against the Landlord for any
                   stoppage of or interruption or fluctuation in the provision
                   of any service or for obstruction interruption or fluctuation
                   of any easement or rights granted by this Sub-Lease nor shall
                   the rent, management fee, air-conditioning fee and other
                   charges herein mentioned abate or cease to be payable on
                   account thereof, in either case caused by any reason outside
                   the reasonable control of the Landlord. The Landlord shall
                   not be liable for any failure by it to observe or perform any
                   obligation it may have to repair the Building. Nothing in
                   this Clause 5 shall exclude or restrict any liability of the
                   Landlord for death or personal injury resulting from the
                   negligence of the Landlord or its agents and employees.

6. Waiver          No condoning, excusing or overlooking by the Landlord of any
                   default, breach or non-observance, or non-performance by the
                   Tenant at any time or times of any of the Tenant's
                   obligations herein contained, shall operate as a waiver of
                   the Landlord's rights hereunder in respect of any continuing,
                   or subsequent, default, breach or non-observance or
                   non-performance, or so as to defeat or affect in any way the
                   rights and remedies of the Landlord hereunder in respect of
                   any such continuing, or subsequent default or breach, and no
                   waiver by the Landlord shall be inferred from, or implied by,
                   anything done or omitted by the Landlord unless expressed in
                   writing and signed by the Landlord. Any consent given by the
                   Landlord shall operate as a consent only for the particular
                   matter to which it relates

                                       23
<PAGE>

                   and shall in no way be considered as a waiver or release of
                   any of the provisions hereof and it shall not be construed as
                   dispensing with the necessity of obtaining the specific
                   written consent of the Landlord in the future, unless
                   expressly so provide.

7. Acceptance      The acceptance of any rent by the Landlord hereunder shall
   of rent         not be deemed to operate as a waiver by the Landlord of any
                   right to proceed against the Tenant in respect of a breach by
                   the Tenant of any of the Tenant's agreements or obligations
                   herein contained.

8. Notice          Any notice required to be served on the Tenant shall be
                   sufficiently served if delivered to or despatched by pre-paid
                   post or left at the Premises or at the last known address of
                   the Tenant. Such notice shall be deemed to be given at the
                   time when in due course of post it would be delivered at the
                   address to which it is sent.

9. On expiry       9.1    During the three (3) months immediately preceding the
                          expiration of this Sub-Lease, the Landlord shall be at
                          liberty to affix and maintain without interference
                          upon any external part of the Premises a notice
                          stating that the Premises are to be let and such other
                          information in connection therewith as the Landlord
                          shall reasonably require.

                   9.2    During the three (3) months immediately preceding the
                          expiration of this Sub-Lease, the tenant shall permit
                          prospective tenant or persons with written authority
                          from the Landlord or the Head Landlord or its agents
                          at reasonable times of the day to enter into the
                          Premises or any part thereof on prior notice being
                          given and not so as to interfere with the efficient
                          management of the tenant.

10. Distress for   For the purpose of distress for rent in terms of Part III of
    rent           the Landlord and Tenant (Consolidation) Ordinance, Cap.7, an
                   for the purpose of this Sub-Lease, the rent in respect of the
                   Premises shall be deemed to be in arrear if not paid in
                   advance as hereinbefore provided all management fee, air
                   conditioning fee and other outgoings payable under this
                   Sub-Lease shall be treated as rent reserved to the intent
                   that the same may also be recoverable as part of the rent
                   payable herein by way of distraint proceedings.

11. Abatement      If the Premises or any part thereof are rendered
    of rent        uninhabitable, and/or substantially unfit for use and/or
                   inaccessible by fire, water, storm, typhoon, Act of God,
                   white ants, earthquake, subsidence of the ground, order of
                   government authority beyond the control of the Landlord and
                   not attributable to any failure of the Tenant to secure and
                   carry out the terms of this Sub-Lease, the rent and the
                   management fee and the air-conditioning fee and other
                   outgoings or a fair proportion thereof (as determined by the
                   Landlord) shall abate according to the nature and extent of
                   the damage or inaccessibility and shall be suspended until
                   the Premises

                                       24
<PAGE>

                   shall have been rendered accessible and fit for occupation;
                   PROVIDED always that the Landlord shall not be required to
                   reinstate the Premises if by reason of the condition of the
                   same or any local regulations or other circumstances beyond
                   the control of the Landlord it is not in the Landlord's
                   opinion practicable or reasonable to do so; Provided further
                   that should the Premises or the Building not have been
                   reinstated in the meantime either the Landlord or the Tenant
                   may at any time after six (6) months from the occurrence of
                   such damage or destruction give to the other of them notice
                   in writing to determine this Sub-Lease and thereupon the same
                   shall determine as from the date of the occurrence of such
                   destruction or damage or of the Premises becoming
                   uninhabitable, unfit for use or inaccessible and the Landlord
                   shall return the Deposit to the Tenant, but without prejudice
                   to the rights and remedies of either party against the other
                   in respect of any antecedent claim or breach of the
                   agreements, stipulations, terms and conditions herein
                   contained, or of the Landlord in respect of the rent payable
                   hereunder prior to the coming into effect of the suspension
                   and/or (if applicable) up to the expiry of such six months'
                   period of Tenant's notice.

12. Exclusions     To the extent that the Tenant can lawfully so do the Tenant
                   hereby expressly agrees to deprive itself of all rights (if
                   any) to protection against eviction or ejectment afforded by
                   any existing or future legislation from time to time in force
                   and applicable to the Premises or to this Sub-Lease and the
                   Tenant agrees to deliver up vacant possession of the Premises
                   to the Landlord on the expiration or sooner termination of
                   this Sub-Lease notwithstanding any rule of law or equity to
                   the contrary.

13. Full           This Sub-Lease sets out the full agreement between the
    agreement      parties hereto. No other warranties or representations have
                   been made or given relating to the Landlord, the Tenant, the
                   Building, or the Premises or if any warranty or
                   representation has been made, the same is hereby waived.

14. Exclusion of   Nothing herein contained shall confer on the Tenant any
    appurtenant    rights, interest, privilege, easement or appurtenance
    rights         whatsoever mentioned or referred to in Section 16 (1) of the
                   Conveyancing and Property Ordinance (Cap. 219) save those
                   expressly set out herein.

15. Observance     The Tenant shall also perform and observe the covenants on
    of Head        the lessee's part (i.e. on the part of the Landlord as the
    Lease          tenant under the Head Lease) and the conditions contained in
                   the Head Lease in so far as they relate to the Premises
                   except the covenant for payment of the rent reserved thereby
                   and shall keep the Landlord indemnified against all claims,
                   damages, costs and expenses in any way arising from the
                   breach of this Clause 15.

                                       25
<PAGE>

16. No Key         The Tenant hereby expressly declares that for the grant of
    Money          the Term no key money or premium or construction money or
                   other consideration otherwise than the rent and other
                   payments hereby expressly reserved and expressed to be
                   payable to the Landlord or to any person whomsoever.

17. Gender         Unless the context otherwise requires, words herein importing
                   the masculine gender shall include the feminine and neuter
                   and words herein in the singular shall include plural and
                   vice versa.

                                       26
<PAGE>

                                 FIRST SCHEDULE

THE LANDLORD  :   Cogent Spring Limited whose registered office is situate at
                  Hsin Chong Center, 107-109 Wai Yip Street, Kwun Tong, Kowloon.

THE TENANT    :   Pacificnet.com Properties Limited whose registered office is
                  situate at 29/F, Aon Insurance Tower, 3 Lockhart Road, Wanchai
                  Hong Kong.

                                 SECOND SCHEDULE
                  THE LEASED PROPERTY AND THE APPURTENANT RIGHTS

ALL THOSE office premises comprising the upper portion of the building and the
office lobby at the ground floor level [excluding the Shared Facilities (as
defined in the Head Lease)] having a gross floor area of approximately 7,014
sq.m. together with the main roof of the Building and the loading and unloading
bay No."CP2" on the ground floor which premises are coloured pink on the plans
annexed to the Head Lease together with the right of free passage of water, gas,
electricity and other services, drains, conduits, channels, cables or flues in
through or under the remaining parts of the Building Together with the right
subject to the Landlord obtaining the approval of the Head Landlord (which
approval shall not be unreasonably withheld or delayed) at the Landlord's own
expense to lay, construct repair and maintain in or under the remaining parts of
the Building such further mains, pipes, cables or similar apparatus as may in
the Landlord's opinion be necessary and together also with the right for
Landlord, its agents, and/or workmen upon reasonable prior notice to the Head
Landlord to enter upon the remaining parts of the Building for the purposes of
laying, constructing, inspecting, maintaining and repairing any of the aforesaid
apparatus, carrying out such work expeditiously and causing as little damage as
possible and subject to the Landlord making good all physical damage caused
thereby to the reasonable satisfaction of the Head Landlord.

                                       27
<PAGE>

                                 THIRD SCHEDULE

THE HEAD LEASE

Date          :   18 May 1994.

Parties       :   (1) THE BOYS' AND GIRLS' CLUBS ASSOCIATION OF HONG
                      KONG whose registered office is situate at No.3 Lockhart
                      Road, Wanchai, Hong Kong.

                  (6) COGENT SPRING LIMITED whose registered
                      office is situate at Hsin Chong Center,
                      107-109 Wai Yip Street, Kwun Tong, Kowloon.

Demised
Property      :   The Leased Property as referred to in the SECOND SCHEDULE
                  hereto.

Term          :   20 years commencing from 16 August 1994 and
                  expiring on 15 August 2014.

                                       28
<PAGE>

                                FOURTH SCHEDULE

Part I   -   The Premises

             ALL THAT 15/F of Aon Insurance Tower ("the Building") as shown on
             the plan annexed hereto and thereon coloured pink (for
             identification purpose only).

Part II  -   Term

             2 years from 8 May 2000 to 7 May 2002 (both days inclusive). The
             Tenant shall have the right to terminate this Sub-Lease by giving
             three (3) months' prior written notice to the Landlord provided
             that such notice of termination shall not be served before 7 May
             2001. Upon the expiration of such notice, this Sub-Lease and
             everything herein contained shall cease and be void but without
             prejudice to the rights and remedies of either party against the
             other in respect of any antecedent claim or breach of any of the
             agreements or stipulations herein contained.

Part III -   Rent

             HK$73,664.00 per calendar month (exclusive of rates and management
             fee and air-conditioning fee and other outgoings).

Part IV  -   Management Fee

             The management fee that will be payable with effect from the
             commencement of the Term as a due proportion of the cost to the
             Landlord of providing the management services to the common areas
             and services of the Building will be HK$15,193.20 per calendar
             month. The management services comprise the items set out in the
             Appendix II.

Part V   -   Air-Conditioning Fee

             The air-conditioning fee that will be payable with effect from the
             commencement of the Term for air-conditioning supplied to the
             Premises during the operating hours as stipulated in Part VII of
             this Fourth Schedule will be HK$7,596.60 per calendar month. The
             air-conditioning fee is calculated in accordance with the
             provisions set out in Appendix III.

                                       29
<PAGE>

PART VI      -            DEPOSIT

Deposit                   :HK$289,361.40
                          (equivalent to three months' rental, management fee
                          and air-conditioning fee)

PART VII     -            OPERATION HOURS OF AIR-CONDITIONING

                          (a)  Monday to Friday 8:30a.m. - 6:30p.m.
                          (b)  Saturday 8:30a.m. - 2:00p.m.
                          (c)  Sunday and public holidays excluded

PART VIII    -            PLAN APPROVAL FEE

Plan Approval Fee         : NIL

PART IX      -            TEMPORARY SERVICE FEE

Temporary Service
Fee                       :NIL

PART X       -            INTEREST AND ADMINISTRATION COST

The Tenant hereby undertakes and agrees that if the Tenant shall have failed to
pay the rent on the date specified in Clause 1 of this Sub-Lease or failed to
pay rates, management fee, air-conditioning fee or any of the said outgoings of
an annual or recurring nature in respect of the Premises on the date on which
the same falls due for payment the Landlord shall without prejudice to its other
rights be entitled under this Sub-Lease to charge and the Tenant shall pay (i)
interest on the said arrears of rent or outstanding amount of rates, management
fee, air-conditioning fee or outgoings at the rate of 3% above the prime lending
rate per annum for Hong Kong dollars as may be quoted from time to time by The
Hongkong And Shanghai Banking Corporation Limited calculated from the date the
same is due until payment and (ii) an administration cost of HK$2,000.00 as the
Landlord's administration cost provided that the demand and/or receipt by the
Landlord of interest and administration cost pursuant to this Part shall be
without prejudice to and shall not affect the right of the Landlord to exercise
any other right or remedy under this Sub-Lease (including the right of re-entry)
exercisable under the terms of this Sub-Lease. All solicitors' costs and
disbursements on enforcing payment of the said arrears or outstanding sums
including the cost of any legal proceedings which may have been taken shall on
demand be paid by the Tenant to the Landlord and until payment shall be a debt
due by the Tenant to the Landlord.

                                       30
<PAGE>

APPENDIX I - MARKET RENT

1.  The Prevailing Market Rent for the Premises shall mean the rental for the
    Premises without making any allowance to reflect or compensate the tenant
    for the absence of any rent free period or contribution to fitting out works
    or other allowance which might then be the practice in open market lettings
    for a landlord to make. The Prevailing Market Rent shall be that which would
    be payable after the expiry of any such rent free or concessionary rent
    period and of the receipt of any such contribution or other allowances, all
    of which shall be entirely disregarded in any calculation of the Prevailing
    Market Rent.

2.  If agreement is reached between the Landlord and the Tenant as to the new
    rent to be payable throughout the rental review period (if any) , such
    agreement shall be in writing signed by both parties and in each such case
    the rent payable during such rental review period shall be the new rent as
    so agreed.

3.  If such an agreement has not been made before the commencement of any rental
    review period, either the Landlord or the Tenant may serve a notice upon the
    other calling for an independent surveyor and valuer (hereinafter called
    "the Surveyor") to be appointed to determine the new rent. The Surveyor may
    be appointed by agreement between the Landlord and the Tenant or in default
    of such agreement the Surveyor may be appointed at the request of either of
    the parties hereto in the first instance by the Chairman for the time being
    of The Royal Institution of Chartered Surveyors (Hong Kong Branch) or in
    default of such appointment the Surveyors may be appointed at the request of
    either of the parties hereto by the President for the time being of the Hong
    Kong Institute of Surveyors or equivalent professional body. The Surveyor's
    decision as to what shall be the new rent shall be conclusive and binding on
    the parties hereto.

4.  In determining the new rent the Surveyor shall act as an expert and not as
    an arbitrator and shall take into account the open market rent (including
    for this purpose any management fee and air-conditioning fee payable) for
    other premises in the Building and/or in similar office buildings in Hong
    Kong having attributes comparable to those of the Building obtainable at
    the time of commencement of the rental review period on the assumptions
    that at the date :-

    (a) the Premises are fitted out and equipped and fit for immediate
        occupation and use complete with floor and wall coverings, false
        ceilings, air-conditioning throughout, electrical reticulation and
        other landlord's finishes fittings and equipment all of a standard
        commensurate with a high class modern office building in Hong Kong and
        that no work which has been carried out thereon by the Tenant or its
        permitted sub-tenants (if any) or predecessors in title has diminished
        the rental value of the Premises;

    (b) the Premises are available for letting by a willing landlord to a
        willing tenant without a premium but with vacant possession and subject
        to the provisions of this Sub-Lease (other than the amount of the rent
        and any rent free period and any restrictions on use provided for
        herein) for the rental review period.

                                       31

<PAGE>

    (c) that the covenants herein contained on the part of the Tenant have been
        fully performed and observed,

        but disregarding :-

    (d) any effect on rent of the fact that the Tenant has been in occupation of
        the Premises;

    (e) any goodwill attached to the Premises by reason of the carrying on
        thereat of the business of the Tenant;

    (f) any effect on rental value of the Premises attributable to any special
        improvement to the Premises or any part thereof carried out by the
        Tenant with the Landlord's consent where required (otherwise than in
        pursuance of an obligation of the Tenant) including any special
        improvements made by the Landlord at the expense of the Tenant prior to
        the commencement or during the continuance of the Term.

5.  The Surveyor shall afford to each of the parties hereto an opportunity to
    make representations to him.

6.  If the Surveyor shall die delay or become unwilling or incapable of acting
    or if for any other reason the Chairman for the time being of the Royal
    Institution of Chartered Surveyors (Hong Kong Branch) or the President for
    the time being of the Hong Kong Institute of Surveyors as the case may be
    or the person acting on his behalf shall in his absolute discretion think
    fit he may by writing discharge the Surveyor and appoint another in his
    place.

7.  If the new rent shall not have been determined before the commencement of
    the rental review period pending determination of the new rent that shall be
    payable in respect of any rental review period, the Tenant shall continue to
    pay on account of the new rent the rent that was payable immediately before
    the beginning of the rental review period and within fourteen (14) days of
    the determination of the new rent, the Tenant shall pay to the Landlord, or
    the Landlord shall refund to the Tenant the difference between the rent
    actually paid by the Tenant during the period pending determination as
    aforesaid and the new rent payable for the period pending determination plus
    such amount of interest as may be directed by the Surveyor.

8.  The costs and expenses of the Surveyor including the cost of his appointment
    shall be borne by the Landlord and the Tenant in equal shares. All other
    costs and expenses incurred by the Landlord or the Tenant in respect of or
    in connection with any determination of new rental shall be borne by
    themselves separately.

                                       32

<PAGE>

APPENDIX II - MANAGEMENT SERVICES

1.  The management services to be provided by the Landlord (whether directly or
    through an agent or sub-contractor) will comprise, including but not limited
    to the following items :-

    (a) cleaning of the common areas;

    (b) lighting of the common areas;

    (c) maintenance, decoration and repair of the common areas;

    (d) maintenance and repair of passenger lifts and lifts machinery, water
        pumps and tanks and electrical and other service connections;

    (e) maintenance and repair of the Building's security system;

    (f) provision and remuneration of caretaking, maintenance, security staff
        and manager

    (g) cost of electricity, water and other services employed in the common
        areas;

    (h) garbage and waste disposal;

    (i) rates relative to the common areas;

    (j) insurance premia relative to the insurance of the Building and equipment
        therein and the Landlord's or its agent or sub-contractor's staff
        employed in relation thereto;

    (k) any other expense properly incurred by the Landlord (other than in
        relation to the structural integrity of the Building) in relation to the
        management and maintenance of the Building as a first class office
        building including any fee that may be paid to any specialist
        sub-contractor or agent that may be appointed by the Landlord to carry
        out all or any of the duties associated with the maintenance and
        management services herein described;

    (l) the remuneration to the Landlord for its administration and supervision
        to be calculated at 10% of the total of items (a) to (k) above.

2.  If at any time or time during the Term the cost to Landlord of providing the
    management services, including (without limitation) the cost of maintenance
    of plant and machinery, staff, replacement of parts, depreciation, cost of
    electricity or other services and all other costs related to such services
    shall have increased, the Landlord shall have the right to increase the
    amount of the management fee payable hereunder by the Tenant by an amount
    which shall represent the actual increase in the cost to the Landlord of
    providing the management services since in the first instance the date of
    commencement of the Term and thereafter since the date of the last increase,
    based on the cost of the above items plus 10% of the amount of each such
    increase it being agreed that a notice in writing served by the Landlord on
    the Tenant notifying the Tenant of an increase in the management fee shall
    be conclusive and binding upon the Tenant Provided however that the Landlord
    shall not increase the management fee more than once in any period of six
    consecutive calendar months.

                                       33

<PAGE>

APPENDIX III - AIR-CONDITIONING SERVICES

1.  The charges for the provision of air-conditioning services shall be based on
    a proportion of the total costs as contained in Clause (2) of this Appendix,
    such proporation to be calculated where the denominator is the aggregate
    gross area of all premises which are being provided with the said
    air-conditioning services and the numerator is the gross area let to the
    Tenant PROVIDED ALWAYS THAT the Landlord's calculation of the gross areas
    shall in the absence of manifest error be final and binding.

2.  The total costs for the provision of air-conditioning services, including
    but not limited to as aforesaid shall be the aggregate of:

    (a) the costs of electricity, water and other consumables consumed in
        providing the air-conditioning services;

    (b) wages and other benefits payable to and uniforms provided for the
        employees of the Landlord engaged in providing the air-conditioning
        services;

    (c) any payments due under any contract and/or any other payments in respect
        of the renewal, replacement, repair, maintenance, upkeeping, inspection
        and running costs of the plant, machinery, apparatus, equipment,
        ductwork, pump house, seawater supply pipe, piping accommodation and any
        other structure connected with the provision of the air-conditioning
        services;

    (d) the preparation of accounts and certificates relating to the costs of
        providing the air-conditioning services;

    (e) a due proportion of fees, rates and other payments due to the Government
        in respect of the seawater supply pipe and pump house (if any);

    (f) any other reasonable costs incurred by the Landlord in providing and
        maintaining the air-conditioning services;

    (g) the cost to the Landlord by way of interest, commission, banking
        charges, return on investment or otherwise of the capital outlay for the
        initial installation and subsequent replacement or renewal of a capital
        nature of the plant, machinery, apparatus, equipment, ductwork, pump
        house, seawater supply pipe, piping and any other structure connected
        with the provision of the air-conditioning services to be calculated at
        the rate of 10% per annum on the total of the said capital outlay;

    (h) the remuneration to the Landlord for its administration and supervision
        to be calculated at 10% of the total of items (a) to (f) above.

                                       34

<PAGE>

3.  If during the Term, any or all of the costs for the supply of
    air-conditioning mentioned under Clause (2) above shall have increased, the
    Landlord shall be entitled to serve a notice in writing upon the Tenant
    increasing the amount of air-conditioning fee payable hereunder by the
    Tenant by an amount which shall represent the actual increase in the cost to
    the Landlord of providing the air-conditioning service since in the first
    instance the date of commencement of the Term and thereafter since the date
    of the last increase, based on the cost of the items in Clause (2) above
    plus 10% of the amount of each such increase it being agreed that a notice
    in writing served by the Landlord on the Tenant notifying the Tenant of an
    increase in the air-conditioning fee shall be conclusive and binding upon
    the Tenant Provided however that the Landlord shall not increase the
    air-conditioning fee more than once in any period of six consecutive
    calendar months.

                                       35

<PAGE>

IN WITNESS whereof this Sub-Lease has been executed by the parties hereto the
day and year first above written.

SIGNED by the Landlord                   )
                                         )     For and on behalf of
                                         )     COGENT SPRING LIMITED
in the presence of :-                    )     /s/ [ILLEGIBLE]
                                         )     --------------------------------
                                         )                         DIRECTOR(S)
                                         )
                                         )
                                         )
                                         )
                                         )

SIGNED by the Tenant                     )
                                         )
                                         )     For and on behalf of
                                         )     PACIFICNET.COM LIMITED
in the presence of :-                    )     /s/ [ILLEGIBLE]
                                         )     --------------------------------
                                         )             AUTHORIZED SIGNATURE(S)
                                         )

RECEIVED on the day and year first       )
                                         )
above written the sum of HONG KONG       )
                                         )
DOLLARS Two Hundred Eighty Nine          )HK$289,361.40
Thousand Three Hundred Sixty One         )
and Cents Forty ONLY being the           )     For and on behalf of
                                         )     COGENT SPRING LIMITED
Deposit hereinbefore expressed to        )     /s/ [ILLEGIBLE]
                                         )     ------------------------------
be payable by the Tenant to the Landlord )                      DIRECTOR(S)

                                      36

<PAGE>

[Map of
15th Floor
Office Plan]

                                      37<PAGE>

                                  EXHIBIT 10.28

                              EMPLOYMENT AGREEMENT

THIS AGREEMENT, made and entered into this 27th day of December 1999, by and
between Vital Images, Inc. ("Company") and Albert Emola ("Executive").

                              W I T N E S S E T H :

WHEREAS, Company desires to retain the services of Executive for and on behalf
of Company on the terms and subject to the conditions set forth herein.

WHEREAS, each of the parties acknowledge that they are receiving good and
valuable consideration for entering into this Employment Agreement and Executive
acknowledges that this Employment Agreement, including the non-disclosure
agreement set forth hereinbelow, was negotiated between the parties hereto and
that Executive received bargained for consideration in the form of benefits
resulting to Executive from the terms and conditions of such employment, in
exchange for entering into this Employment Agreement.

NOW, THEREFORE, in consideration of the mutual covenants contained herein, the
sufficiency of which is hereby acknowledged, the parties hereto agree as
follows:

                                   ARTICLE I.

                               EMPLOYMENT AND TERM

1.1 EMPLOYMENT. Upon the terms and subject to the conditions herein contained,
Company hereby employs Executive as President and Chief Executive Officer, and
Executive hereby accepts such employment, subject to the supervision of the
Board of Directors of Company.

1.2. TERM. This Agreement shall take effect upon the date first above written,
and shall remain in effect until terminated in accordance with Article IV. Upon
termination of this Agreement, except as otherwise provided herein, neither
Company nor Executive shall have any further rights, duties, privileges or
obligations hereunder.

                                   ARTICLE II.

                                  COMPENSATION

2.1 BASE SALARY. In exchange for the provision of services, Company agrees that
it will pay Executive effective January 1, 2000 at the rate of $180,000 per
year, payable in accordance with standard pay practices of Company, less any
applicable withholdings or deductions.
<PAGE>

2.2 BENEFITS. In addition to the compensation set forth under Section 2.1,
Executive shall be entitled to participate in any of Company's standard benefit
policies or plans, including its Employee Stock Purchase Plan, according to
their terms. Subject to the provisions of Section 4.1(d) of this Agreement,
these policies may be modified or terminated from time to time by Company, but
not retroactively. The written terms of the policies shall govern any questions
of eligibility, coverage, or duration of coverage.

2.3 INCENTIVE COMPENSATION. As an incentive to performance, Executive shall be
eligible to receive incentive compensation and/or benefits as follows:

         a.       Executive shall be eligible to participate in Company's
                  Management Incentive Plan (the "Plan") as it is established
                  annually by the Board of Directors. Pursuant to the Plan,
                  Executive's incentive target for calendar year 2000 shall be
                  fifty percent (50%) of Executive's base salary for calendar
                  year 2000. Executive's incentive compensation for calendar
                  year 2000 under the Plan, if any, will be determined as soon
                  as practical after December 31, 2000, and will be paid to
                  Executive in a lump sum, less any withholdings or deductions,
                  on or before March 15, 2001.

         b.       Upon approval by Company's Board of Directors, Executive shall
                  be entitled to enter into Stock Option Agreements, attached
                  hereto as EXHIBIT A AND EXHIBIT B, with Company.

2.4 VACATION. Executive shall initially receive twenty (20) days of vacation per
year.

2.5. BOARD OF DIRECTORS. Upon Executive's employment by Company, he shall be
elected to Company's Board of Directors.

2.6. BUSINESS EXPENSES. The Company will reimburse Executive for all reasonable,
ordinary and necessary expenses incurred by him in the performance of his duties
hereunder, provided that Executive accounts to Company for such expenses in a
manner normally prescribed by Company for reimbursement of expenses. Such
reimbursement requests must be accompanied by the appropriate documentation and
shall be subject to review by Company's Chief Financial Officer.

                                  ARTICLE III.

                               DUTIES OF EXECUTIVE

3.1 SERVICES. Executive shall perform all duties and obligations charged to
Executive by the Board of Directors of Company, as the same may be determined
from time to time. The Board shall assure adequate time, resources and authority
for Executive to achieve goals mutually agreed upon by Company and Executive.

                                      -2-
<PAGE>

3.2 TIME AND EFFORT. Executive shall devote his full time and effort to the
business of Company. Executive shall perform the duties and obligations required
of Executive hereunder in a competent, efficient and satisfactory manner at such
hours and under such conditions as the performance of such duties and
obligations may require.

3.3 ARTICLES AND BY-LAWS. Executive shall act in accordance with so as to abide
by the Articles of Incorporation of Company, the Bylaws of Company and all
decisions of the Board of Directors of Company.

3.4 CONFIDENTIALITY AND LOYALTY. Executive acknowledges that during the course
of his employment he has produced and may produce and have access to material,
records, data and information not generally available to the public
("Confidential Information") regarding Company, its customers and affiliates.
Accordingly, during and subsequent to the termination of this Agreement,
Executive shall hold in confidence and not directly or indirectly disclose, use,
copy or make lists of any such confidential information, except to the extent
authorized in writing by Company, or as required by law or any competent
administrative agency or as otherwise is reasonably necessary or appropriate in
connection with the performance by Executive of his duties pursuant to this
Agreement. Upon termination of his employment under this Agreement, Executive
shall promptly deliver to Company (i) all records, manuals, books, documents,
letters, reports, data, tables, calculations and all copies of any of the
foregoing which are the property of Company or which relate in any way to the
customers, business, practices or techniques of Company and (ii) all other
property of Company and Confidential Information which in any of these cases are
in his possession or under his control. Executive agrees to abide by Company's
reasonable policies as in effect from time to time, respecting avoidance of
interests conflicting with those of Company.

3.5 WORKS MADE FOR HIRE. Executive acknowledges and agrees that any and all
works of authorship by Executive made pursuant to this Agreement or any prior
agreements are within the scope of services to be provided to Company and shall
constitute "works made for hire" as defined by the Copyright Act of 1976, Title
17 of the United States Code, as now enacted or hereinafter amended.
Accordingly, Executive acknowledges and agrees that Company shall be the sole
and exclusive owner of any and all copyright(s) with respect to such works of
authorship and that Executive shall not be entitled to any additional
compensation over and above the compensation set forth herein or otherwise
already received by Executive unless otherwise agreed in writing by Company. If
any work of authorship created hereunder or prior hereto is not deemed to be a
"work made for hire," Executive hereby assigns all right, title and interest
therein to Company.

3.6 COMPANY TO HOLD PROPRIETARY RIGHTS. Furthermore, and without limiting the
foregoing, Executive acknowledges and agrees that all proprietary rights
including, without limitation, all patent, trademark, trade secret, copyright
and other rights, which may exist in connection with any and all inventions,
ideas, and works created or conceived by Executive for Company, either before or
after the date hereof, shall be the sole and exclusive property of Company and
Executive shall have no further rights therein and, to the extent necessary,
assigns all such rights to Company. All patent, copyright and other rights in
such inventions, ideas and works shall be the property of Company, who shall
have the sole right to seek patent, copyright, registered design or other
protection in connection therewith. Executive shall at Company's

                                      -3-
<PAGE>

reasonable expense do all things and execute all such documents as Company may
reasonably require to vest in Company the rights and protection herein
described.

3.7 REMEDIES. Executive agrees and understands that any breach of any of the
covenants or agreements set forth in this ARTICLE III of this Agreement will
cause Company irreparable harm for which there is no adequate remedy at law,
and, without limiting whatever other rights and remedies Company may have under
this paragraph, Executive consents to the issuance of an injunction in favor of
Company enjoining the breach of any of the aforesaid covenants or agreements by
any court of competent jurisdiction. If any or all of the aforesaid covenants or
agreements are held to be unenforceable because of the scope or duration of such
covenant or agreement or the area covered thereby, the parties agree that the
court making such determination shall have the power to reduce or modify the
scope, duration and/or area of such covenant to the extent that allows the
maximum scope, duration and/or area permitted by applicable law.

                                   ARTICLE IV.

                                   TERMINATION

4.1 RESIGNATION OF EXECUTIVE. Executive may resign his employment at any time
for any reason upon fifteen (15) days advance written notice to the Board of
Directors. If Executive resigns his employment without Good Reason (as that term
is defined below), he shall not be entitled to severance pay. If Executive
resigns his employment for Good Reason, the Company shall pay Executive the
severance pay set forth in Section 4.2 below provided Executive agrees to
release any claims he may have against the Company in exchange for the receipt
of severance pay. For purposes of this Agreement, Good Reason shall mean the
occurrence of any of the following events, which the Company has not cured
within thirty (30) days of notice thereof:

                  a.       A material breach of this Agreement by the Company;

                  b.       A material adverse change in Executive's status or
                           position as an executive officer of the Company as a
                           result of a material diminution in Executive's
                           duties, responsibilities or authority as of the date
                           of this Agreement (except in connection with the
                           termination of Executive's employment in accordance
                           with Section 4.3 hereof);

                  c.       A reduction by the Company of Executive's Base Salary
                           as the same may be increased from time to time;

                  d.       Without replacement by a plan providing benefits to
                           Executive equal to or greater than those discontinued
                           or by payment of cash in lieu of such benefits, the
                           failure by the Company to continue in effect, within
                           its maximum stated term, any employee benefit plan in
                           which Executive is participating immediately prior to
                           the date of this Agreement or the taking of any
                           action by the Company that would adversely affect
                           Executive's participation or materially reduce
                           Executive's benefits under all such plans; provided,
                           however, that Good Reason shall not include changes,

                                      -4-
<PAGE>

                           modifications and terminations of the Company's
                           standard benefit policies and plans which are
                           generally applicable to the Company's officers and
                           employees; or

                  e.       The Company's requiring Executive to be based
                           anywhere other than the Minneapolis/St. Paul,
                           Minnesota metropolitan statistical area, except for
                           required travel on the Company's business.

4.2 TERMINATION BY COMPANY. Company shall have the right to terminate
Executive's employment without notice and with or without Cause, as that term is
defined below. If Company terminates Executive's employment without Cause,
Company shall pay Executive twelve (12) months of severance pay based on
Executive's base salary at the time of termination provided Executive agrees to
release any claims he may have against the Company in exchange for the receipt
of severance pay. Executive's severance pay, if any, shall be payable in one
lump sum, less any applicable withholdings or deductions, within ten (10) days
after the expiration of any applicable rescission periods. If Company terminates
Executive's employment with Cause, Executive shall not receive severance pay.

4.3 TERMINATION FOR CAUSE. Notwithstanding anything contained in this Agreement
to the contrary, Company shall have the right to terminate the employment of
Executive for Cause. Cause means:

         a.       Executive's gross misconduct;

         b.       Executive shall inexcusably violate or willfully refuse to
                  obey the lawful and reasonable instructions of the Board of
                  Directors of Company; or

         c.       Executive's conviction (including a plea of nolo contendere)
                  of willfully engaging in illegal conduct constituting a felony
                  or gross misdemeanor under federal or state law which is
                  materially and demonstrably injurious to the Company or which
                  impairs Executive's ability to perform substantially his
                  duties for the Company.

         An act or failure to act will be considered "gross" or "willful" for
         this purpose only if done, or omitted to be done, by Executive in bad
         faith and without reasonable belief that it was in, or not opposed to,
         the best interests of the Company. Any act, or failure to act, based
         upon authority given pursuant to a resolution duly adopted by the
         Company's board of directors (or a committee thereof) or based upon the
         advice of counsel for the Company will be conclusively presumed to be
         done, or omitted to be done, by Executive in good faith and in the best
         interests of the Company. It is also expressly understood that
         Executive's attention to matters not directly related to the business
         of the Company will not provide a basis for termination for Cause so
         long as the Board did not expressly disapprove in writing of
         Executive's engagement in such activities either before or within a
         reasonable period of time after the Board knew or could reasonably have
         known that Executive engaged in those activities. Notwithstanding the
         foregoing, Executive may not be terminated for Cause unless and until
         there has been delivered to him a copy of a resolution duly adopted by
         the affirmative vote of not less than a majority of the entire

                                      -5-
<PAGE>

         membership of the Board at a meeting of the Board called and held for
         the purpose (after reasonable notice to Executive and an opportunity
         for him, together with his counsel, to be heard before the Board),
         finding that in the good faith opinion of the Board Executive was
         guilty of the conduct set forth above in clauses a., b. or c. of this
         definition and specifying the particulars thereof in detail.

Where the employment of Executive is terminated pursuant to this Article IV,
Section 4.3 of this Agreement, such termination shall be effective upon the
delivery of notice thereof to Executive.

4.4 SURVIVING RIGHTS. Notwithstanding the termination of Executive's employment,
the parties shall be required to carry out any provisions hereof which
contemplate performance subsequent to such termination; and such termination
shall not affect any liability or other obligation which shall have accrued
prior to such termination, including, but not limited to, any liability for loss
or damage on account of a prior default.

4.5 CHANGE IN CONTROL BENEFITS.

         a.       The Company and Executive shall enter into a Change in Control
                  Agreement which shall provide that if Executive's employment
                  with the Company is terminated for any reason other than
                  death, cause, disability, or retirement, or if executive
                  terminates his employment with the Company for good reason,
                  and such termination occurs within 12 months following a
                  "change in control", executive shall be entitled to receive a
                  lump sum cash payment equal to his average monthly salary
                  multiplied by 24, as well as employee welfare benefits then in
                  effect for a period of 24 months following such termination.

         b.       If any of the payments or benefits to be made or provided to
                  Executive in connection with the Change in Control Agreement,
                  together with any other payments, benefits or awards which
                  Executive would have the right to receive from the Company
                  constitute an "excess parachute payment" (as defined in
                  Section 280G(b) of the Internal Revenue Code (the "Code")),
                  two calculations shall be performed. In the first calculation,
                  the payments, benefits or awards will be reduced by the amount
                  the Company deems necessary so that none of the payments or
                  benefits are excess parachute payments ("Calculation I"). In
                  the second calculation, the payments will not be reduced so as
                  to eliminate the excess parachute payment, but will be reduced
                  by an amount of the applicable excise tax payable by Executive
                  as imposed by Section 4999 of the Code ("Calculation II"). The
                  two calculations will be compared and the calculation
                  providing the largest net payment to Executive will be
                  utilized.

         c.       In the event that (i) payments and benefits made to Executive
                  are limited to the amount provided by Calculation I and the
                  Internal Revenue Service (the "IRS") imposes an excise tax on
                  such amount due to an error in making Calculation I or (ii)
                  payments and benefits are made to Executive in accordance with
                  the Calculation II and the Internal Revenue Service imposes an
                  excise tax on such payments (due to an error in making
                  Calculation II) in addition to the amount of any excise tax
                  used by

                                      -6-
<PAGE>

                  the Company for the purposes of making Calculation II such
                  that the net payment to Executive after applicable excise tax
                  is less than the amount Executive would have receive pursuant
                  to Calculation I, the Company shall make an additional payment
                  to Executive so that the total amount of all such payments and
                  benefits, net of applicable excise tax, is equal to the amount
                  determined pursuant to Calculation I. In addition, the Company
                  shall reimburse Executive for the full amount of any
                  penalties, interest, and legal and accounting fees reasonably
                  incurred by Executive in connection with the IRS action and
                  shall pay Executive an amount necessary to pay any additional
                  income tax and excise tax on the additional payments provided
                  by this subparagraph on a fully grossed up basis. Nothing in
                  this subparagraph shall require the Company to pay or
                  reimburse Executive for any additional excise tax imposed on
                  payments made pursuant to Calculation II which does not reduce
                  the total amount of such payments (net of excise tax) below
                  the amount determined pursuant to Calculation I.

                                   ARTICLE V.

                               GENERAL PROVISIONS

5.1 NOTICES. All notices, requests, and other communications shall be in writing
and except as otherwise provided herein, shall be considered to have been
delivered if personally delivered or when deposited in the United States Mail,
first class, certified or registered, postage prepaid, return receipt requested,
addressed to the proper party at its address as set forth below, or to such
other address as such party may hereafter designate by written notice to the
other party:

         a.       If to Company, to:            Vital Images, Inc.
                                                3300 Fernbrook Lane N.
                                                Suite 200
                                                Plymouth, MN  55447

                                                Attn. Chief Financial Officer

         b.       If to Executive, to:          Albert Emola
                                                50 Peninsula Road
                                                Dellwood, MN 55110

5.2 WAIVER, MODIFICATION OR AMENDMENT. No waiver, modification or amendment of
any term, condition or provision of this Agreement shall be valid or of any
effect unless made in writing, signed by the party to be bound or its duly
authorized representative and specifying with particularity the nature and
extent of such waiver, modification or amendment. Any waiver by any party of any
default of the other shall not effect, or impair any right arising from, any
subsequent default. Nothing herein shall limit the rights and remedies of the
parties hereto under and pursuant to this Agreement, except as hereinbefore set
forth.

                                      -7-
<PAGE>

5.3 ENTIRE AGREEMENT. This Agreement contains the entire understanding of the
parties hereto in respect of transactions contemplated hereby and supersedes all
prior agreements and understandings between the parties with respect to such
subject matter.

5.4 INTERPRETATION AND SEVERANCE. The provisions of this Agreement shall be
applied and interpreted in a manner consistent with each other so as to carry
out the purposes and intent of the parties hereto, but if for any reason any
provision hereof is determined to be unenforceable or invalid, such provision or
such part thereof as may be unenforceable or invalid shall be deemed severed
from this Agreement and the remaining provisions shall be carried out with the
same force and effect as if the severed provision or part thereof had not been a
part of this Agreement.

5.5 GOVERNING LAW. This Agreement shall be construed and enforced in accordance
with the laws of the State of Minnesota.

5.6 ASSIGNMENT. Executive acknowledges that Executive's services are unique and
personal. Accordingly, Executive may not assign Executive's rights or delegate
Executive's duties or obligations under this Agreement. Company's rights and
obligations under this Agreement shall inure to the benefit of and shall be
binding on Company's successors and assigns.

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

                                    VITAL IMAGES, INC.

                                    By    /s/ James B. Hickey, Jr.
                                       --------------------------------
                                          James B. Hickey, Jr.
                                          Director

                                    EXECUTIVE:

                                    /s/ Albert Emola
                                    -----------------------------------
                                    Albert Emola

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