Document:

EMPLOYMENT AGREEMENT

         THIS EMPLOYMENT AGREEMENT (hereinafter "Agreement") is made and entered
into  effective as of the first day of December,  1999, by and between  DAEDALUS
BUILDING SYSTEMS, INC, a Delaware Corporation (hereinafter "Employer") and DAVID
LIGHTBODY (hereinafter "Employee").

         WHEREAS,  Employer  is engaged in the  business  of  manufacturing  and
selling building systems to build housing units worldwide, and desires to employ
Employee to act as Executive Vice President; and

         WHEREAS, Employee desires to accept employment to act as Executive Vice
President and as an employee of Employer; and

         WHEREAS,  Employer  has offered  Employee  reasonable  compensation  in
consideration  for such employment  pursuant to certain terms and conditions set
forth herein and Employee hereby accepts such offer.

         NOW,  THEREFORE,  for and in  consideration  of the mutual promises and
agreements  contained  herein and other  good and  valuable  consideration,  the
receipt and sufficiency of which are hereby acknowledged,  Employer and Employee
hereby agree as follows:

         1. Term. The term of Employee's  employment  under this Agreement shall
commence on December 1, 1999, and shall continue  thereafter  until November 30,
2002, except as otherwise provided herein (the "Term").

         2. Duties and Services.  Employee agrees to devote appropriate time and
attention  to the  business  of  Employer  for  the  benefit  of  Employer.  The
expenditure of reasonable  amounts of time for other business  activities  shall
not be  deemed a breach  of this  Agreement,  provided  such  activities  do not
materially  interfere  with the services to be rendered  hereunder.  Any outside
employment  must be  pre-approved  by the  Employer,  except for  employment  by
companies now known as Daedalus Products, Inc., Daedalus IT, Inc., or any of the
Chesapeake companies.

         3. Compensation.  As compensation for services provided by Employee and
as long as Employee is not in default hereunder, Employer shall pay Employee per
annum  as  follows:  Year  1 the  sum  of $  130,000.00;  Year  2 the  sum  of $
160,000.00;  Year 3 the sum of $  190,000.00.  The  compensation  shall  be paid
periodically in accordance with Employer's normal payroll procedures;  provided,
however,  that compensation  payable to Employee after the Term shall be payable
in accordance with Section 11 of this Agreement.  Further,  at the option of the
Employer, the Employee may be paid a bonus based upon the financial condition of
the company and upon consideration of Employee's contributions to the company.

         4. Disclosure and Ownership of Information.

                  a.  Employee  recognized  and  agrees  that  the  business  of
         Employer and its business interests require a confidential relationship
         between Employer and its employees and the fullest practical protection
         and  confidential  treatment  of its trade  secrets,  trade  practices,
         prospects, transactions, business lists, business information, business
         files  and  other  knowledge  of  business  which  will be or have been

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         conceived, developed or learned by Employee during Employee's course of
         employment  with  Employer.  Accordingly,  during  Employee's  term  of
         employment with Employer and thereafter, Employee will: (i) keep secret
         and confidential all such information,  trade secrets, trade practices,
         prospects, transactions, business lists, business information, business
         files and other  business  practices of  Employer;  (ii) not use or aid
         others in using,  directly or indirectly,  the same in competition with
         Employer;  and  (iii)  will  not  contact  or  solicit  the  customers,
         employees or  creditors of Employer in any manner which  relates to any
         business engaged in by Employer.

                  b. Notwithstanding  anything to the contrary in subsection (a)
         of this section,  Employer and Employee agree that all housing  related
         inventions,  housing  related ideas,  housing  related  plans,  housing
         related  reports,  or housing  related  processes  which are conceived,
         invented, prepared or developed primarily by Employee during Employee's
         employment  with the Employer shall be the sole and exclusive  property
         of Employer.

                  c.  Employer and Employee  agree that all  inventions,  ideas,
         plans, reports,  prospects or processes or other results of labor which
         are conceived,  invented,  prepared or developed,  in whole or in part,
         during  Employee's  employment  with  the  employer,  by  or  with  the
         assistance  of Employee and with or without the  assistance of Employer
         or other employees of Employer shall be the sole and exclusive property
         of Employer,  and Employee shall, upon request by Employer at any time,
         execute  assignments of the same or other similar documents in favor of
         Employer.

                  d.  During  the term of this  Agreement,  Employee  shall have
         access to and become  acquainted  with  various  trade  secrets  and/or
         confidential or proprietary  information,  including but not limited to
         protocols,  procedures, policies, business or strategic plans, business
         accounts, financial information,  contracts, risk management or quality
         assurance information, and other records of Employer (some of which may
         be developed in part by Employee under this Agreement), which items are
         owned  exclusively  by Employer and, to the extent created by Employee,
         shall  be  deemed  work for  hire,  and  used in the  operation  of its
         business (the "Confidential  Information").  Employee acknowledges that
         the Confidential Information is secret, confidential and proprietary to
         Employer  and has been  disclosed  to and/or  obtained  by  Employee in
         confidence  and  trust for the sole  purpose  of using the same for the
         sole  benefit  of  Employer.   During  his  employment  and  after  the
         termination or expiration of his employment, Employee shall not divulge
         any of the  Confidential  Information  to any other person or entity or
         use the Confidential Information for his own benefit or for the benefit
         of any other  person or  entity,  without  the prior  written  consent,
         Employer, which consent may be withheld in its sole discretion.

                  e. The  parties  agree that the terms of this  Section 4 shall
         survive  termination or expiration of this Agreement.  The existence of
         any claim or cause of action  against  Employer  by  Employee,  whether
         predicated  on this  Agreement  or  otherwise,  shall not  constitute a
         defense to enforcement of this Section.

         5. Covenant Not to Compete.

                  a. Employee  agrees that while employed by Employer,  Employee
         will  not,  directly  or  indirectly,  own,  operate,  participate  in,
         undertake  any  employment  with or have any  interest in any  business
         enterprise  which  is  competitive  with  the  business  engaged  in by

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         Employer; provided, that this section shall not be interpreted to limit
         the  activities  of the  Employee  when such  Employee is acting as the
         agent of Employer.

                  b. For a period of sixty (60) months following the termination
         of employment  hereunder,  Employee shall not,  directly or indirectly,
         own, operate, participate in, undertake any employment with or have any
         interest in any  business  which is involved  in  providing  housing or
         dwelling units made of composites or other materials.

         6.  Damages  for  Breach of  Sections  6 and 7. In the  event  Employee
breaches or threatens to breach any of the covenants  contained in Sections 6 or
7 hereof,  Employer  shall  have any and all rights  and  remedies  at law or in
equity  against  Employee,  including,  but not  limited to, the right to obtain
compensatory damages from Employee. Employer may offset any amounts due Employee
from Employer  against amounts due Employer  hereunder.  The rights and remedies
provided in this  Section  are in  addition  to any and all rights and  remedies
Employer has, including the right of injunction,  pursuant to Section 16 hereof.
Upon request of Employer,  Employee  shall submit to  arbitration as provided in
Section 19 hereof.

         7. Reasonableness of Restrictions.

                  (a) Employee has carefully  read and considered the provisions
         of  Paragraph  6,  7 and  8  and,  having  done  so,  agrees  that  the
         restrictions set forth in these paragraphs,  including, but not limited
         to, the time  period of  restriction  are fair and  reasonable  and are
         reasonably required for the protection of the interests of employer and
         its officer, directors, shareholders and other employees.

                  (b) In the event that,  notwithstanding the foregoing,  any of
         the  provisions of Paragraphs 6, 7 and 8 shall be held to be invalid or
         unenforceable,  the remaining  provisions  thereof  shall  nevertheless
         continue  to  be  valid  and  enforceable  as  though  the  invalid  or
         unenforceable  parts had not been included  therein.  In the event that
         any provision of the said Paragraphs  relating to the time period shall
         be declared by a court of competent  jurisdiction to exceed the maximum
         time  period  or  areas or  amount  such  court  deems  reasonable  and
         enforceable,  the time period deemed  reasonable and enforceable by the
         court shall become and thereafter be the maximum time period.

         8.  Benefit  Plans.  Employee  shall be  provided  the  opportunity  to
participate in any group health and life insurance plans, medical  reimbursement
plans, pension plans, profit sharing plans, and any other employee benefit plans
or other fringe  benefits  available to other  physician  employees of Employer,
whether now existing or hereafter  created.  Additionally,  the employee will be
provided the opportunity to participate in any program of higher  education,  at
the expense of the  company,  so long as it relates  directly to the business of
the Employer and to the functions for which the Employee is employed.

         9.  Notices.  Any notice  required or  permitted to be given under this
Agreement shall be sufficient if in writing and either  personally  delivered or
mailed by  registered  or certified  mail,  return  receipt  requested,  postage
prepaid,  to the employer at its principal place of business and to the Employee
at his or her last known residential address.

         10.  Arbitration;  Injunctive  Relief.  Except as otherwise provided in
Section 8 hereof,  any dispute or  controversy  arising under this Agreement and
relating to damages shall be settled by submitting the same to arbitration under
the commercial rules of the American Arbitration Association, as then in effect,

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in Alexandria,  Virginia. Any decision or determination from such an arbitration
proceeding  shall be final and  binding  and may be entered in any court  having
jurisdiction  thereof,  unless the  decision  or  determination  is in  manifest
disregard of the applicable  law.  Employee and Employer  acknowledge,  however,
that in many situations  damages are an inadequate  remedy at law for the breach
of many of the terms  hereof  (including,  but not limited to, the  covenants of
Employee  contained  in Sections 6 and 7 hereof) and,  accordingly,  Employer is
hereby  granted and shall have the right of  injunction  (any  requirements  for
posting of bonds for injunction are hereby expressly waived), and such other and
further  relief in equity as Employer may be entitled to receive  under the laws
of the Commonwealth of Virginia,  in the event Employee breaches or threatens to
breach any of the covenants or  agreements  contained  herein.  In the event any
provisions hereof shall be modified or held ineffective by any arbitrator or any
court in any respect, such determination or adjudication shall not invalidate or
render  ineffective  the balance of the  provisions  hereof,  and the provisions
hereof shall be enforced to the maximum extent allowed by law.

         11. Entire  Agreement.  The Agreement  represents  the entire and final
agreement  between  the  parties.  The  parties  hereto  have read the terms and
conditions of their Agreement  before signing the same, and hereby agree that no
statement,  agreement or understanding,  whether oral or written,  not contained
herein will be recognized or enforced.

         12. Miscellaneous.  This Agreement shall be governed by the laws of the
Commonwealth  of Virginia and shall be  enforceable  in  Alexandria  or Fairfax,
Virginia,  and shall be binding  upon and inure to the  benefit  of the  parties
hereto  and  their   respective   successors,   assigns,   heirs  and   personal
representatives.  This  Agreement  may be  amended  only in a writing  signed by
Employer  and  Employee.  Any  waiver  by any  party  hereto  of a breach of any
provision of this Agreement shall not operate or be construed as a waiver of any
subsequent  breach by any part or of any other provision hereof. A waiver of any
of the terms and conditions hereof shall not be construed as a general waiver by
Employer,  and employer  shall be free to reinstate  any such term or condition,
with or without notice to Employee.

         IN WITNESS  WHEREOF,  the parties  hereto have executed this  Agreement
effective as of the first date stated above.

                                                EMPLOYER:
                                                DAEDALUS BUILDING SYSTEMS, INC.

                                                /s/
                                                    --------------------------
                                                    EDWARD A. McCULLOCH
                                                    President

                                                EMPLOYEE:

                                                /s/
                                                    --------------------------
                                                     DAVID LIGHTBODY

                                       4L E A S E

         THIS LEASE, made in quadruplicate,  this 31st day of October,  1999, by
and between CHESAPEAKE SERVICES CORPORATION, a Virginia Corporation, hereinafter
referred  to as  "Lessor",  and  DAEDALUS  BUILDING  SYSTEMS,  INC.,  a Delaware
Corporation, hereinafter referred to as "Lessee."

                              W I T N E S S E T H:

         1. PREMISES. The Lessor does demise and let unto the Lessee, and Lessee
does lease and take from the Lessor,  for the term and upon the restrictions and
conditions  as set  forth  in this  Lease,  the  first  floor  of the  premises,
consisting  of 4,556 square feet,  inclusive of land,  building and  structures,
located at 8653 Richmond Highway, Alexandria,  Virginia 22309, together with all
alley  rights  and  parking  rights,  if any,  easements,  rights  of  way,  and
appurtenances in connection therewith or thereunto belonging.

         2.  USE OF LEASED PREMISES.

         a. Use.  Lessee  shall  occupy  and use the  demised  premises  for the
         operation  of an office and  facilities  for Lessee.  Lessee  shall not
         permit any conduct, which, in the opinion of Lessor, is disreputable.

          b.  Compliance  with Laws.  The lessee  shall comply with all federal,
          state, or municipal laws,  ordinances and regulations dealing with the
          use of the demised  premises,  and will save the Lessor  harmless from
          any damage,  penalty,  or charge imposed or incurred for the violation
          of any such laws,  ordinances,  or regulations,  whether occasioned by
          the Lessee,  its agents, or any other person using or present upon the
          demised premises.

         c. Waste and Quiet Conduct. The Lessee shall not commit or suffer to be
         committed  any waste or any  nuisance  upon the demised  premises.  The
         Lessee  shall keep the demised  premises  reasonably  clean and free of
         trash, waste paper and other litter.

         d.  Utilities and Service.  Lessee shall,  throughout  the term of this
         Lease,  pay for all  electricity,  gas,  water and every other service,
         commodity,  or article  which may be furnished and supplied to it or to
         the demised premises.

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         e. Lessor's Right to Enter.  The Lessee shall permit the Lessor and its
         authorized  agents,  at all reasonable  times during the period of this
         Lease, to enter upon the demised premises for the purpose of inspecting
         them.

         3.  POSSESSION.  The  Lessor  agrees  to  deliver  to  Lessee  physical
possession  of the demised  premises upon the  commencement  of the term hereof,
free and clear of all tenants  and  occupants  and the rights of either.  Lessee
agrees to deliver to the Lessor physical possession of the demised premises upon
the termination of the term hereof or any extension thereof,  in good condition,
and repair,  reasonable wear, damage by fire, or damage from any other cause not
directly attributable to the negligence of Lessee excepted.

         4. TERM. The term of this Lease shall be for five (5) years  commencing
on the 1st day of  November  1999,  and ending on the 31st day of October  2004,
unless otherwise terminated or renewed.

         5. OPTIONS TO RENEW.  Lessee shall have the right to extend the term of
this lease for three optional  periods of five (5) years each, if, at the end of
the  initial  term  of  this  Lease,  Lessee  is  not in  default  in any of its
obligations  imposed in this Lease.  The optional term shall be at the rental to
be agreed upon at the time of the  exercise of said option and subject to all of
the remaining terms contained in this Lease.

         The Lessee  shall  exercise  the  option by giving  the Lessor  written
notice of its intention to do so at least one hundred eighty (180) days prior to
the expiration of the original term.

         6.  RENT.

         a. Minimum  Rent.  The Lessee shall pay to the Lessor a minimum rent of
         Eighty Two Thousand  Eight  Dollars  ($82,008.00)  yearly,  payable Six
         Thousand  Eight Hundred  Thirty Four Dollars  ($6,834.00)  monthly,  at
         which  time the  rent  will  increase  as  adjusted  by  Paragraph  (d)
         hereunder.

         b. Time of Payment.  The  minimum  rent shall be paid in advance to the
         Lessor in monthly installments on the first day of each and every month
         of the term without notice or demand and without  abatement,  deduction
         or set-off in the amount as agreed.

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         c.  Additional  Annual  Rent.  The  Lessee  shall  pay  to  the  Lessor
         additional rent which shall be the rent as hereinafter defined.

         d. Rent Adjustment. The monthly base rent shall be increased on the 1st
         of each year during the term hereof,  beginning in 2001,  in accordance
         with the Index now known as "United States Bureau of Labor  Statistics,
         Consumer Price Index, All Urban Consumers," 1967 = 100 Base, All Items,
         Washington,  DC, SMSA  (hereinafter  referred to as the "Index").  Such
         adjustment  shall be computed by multiplying  the Monthly Base Rent for
         the immediately  preceding month  (hereinafter  "Existing  Monthly Base
         Rent")  by one  hundred  percent  (100%)  of a  fraction,  having  as a
         numerator the Index published for the month prior to the month in which
         the adjustment becomes effective, and having as a denominator the Index
         most  recently  published  prior to the Lease  Commencement  Date,  and
         subtracting the integer 1. Any resulting  positive number shall then be
         added to the  Existing  Monthly  Base Rent to  determine  the  Adjusted
         Monthly Base Rent.

Formula for Rent Adjustment in 2001:

CPI Index for 01/2000
Existing Monthly Base Rent x 1.00    ------------------
CPI Index for 01/2001 + Existing Monthly Base Rent = Adjusted Monthly Base Rent.

         Provided,  however,  that the amount payable by Tenant under this Lease
as  Monthly  Base  Rent  shall not be less  than the  Monthly  Base Rent for the
immediately preceding month.

         e. If such Index shall be discontinued  with no successor or comparable
         successor  Index,  or if a  substantial  change  is made in the term or
         number of items  contained in this Index, or if the Index ceases to use
         1967 = 100 as the basis for  calculation,  the parties shall attempt to
         agree upon a substitute formula, but if the parties are unable to agree
         upon a  substitute  formula,  then the matter  shall be  determined  by
         arbitration  in accordance  with the rules of the American  Arbitration
         Association then prevailing.

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         NOTWITHSTANDING  THE ABOVE,  THE  INCREASE  IN ANY GIVEN YEAR SHALL NOT
EXCEED THREE (3%) PERCENT.

         f. Late Charge.  Lessee shall pay a late charge of five percent (5%) of
         any rental,  minimum or  additional,  received by Lessor later than ten
         (10) days after the due date.

         7. LIENS AND OTHER OBLIGATIONS.  Lessee will not create or permit to be
created  or  to  remain,  and  will  discharge,  any  lien,  security  interest,
encumbrance  or charge  upon the demised  premises  or any part  thereof or upon
Lessee's  leasehold  interest  therein;  provided  that  the  existence  of  any
mechanic's  lien or right in respect thereof shall not constitute a violation of
this section if it is bonded or insured.

         8.  REAL  ESTATE  TAXES.  Lessor  shall  be  obligated  to pay all real
property taxes (including extraordinary and/or special assessments) which may be
levied or assessed by any lawful authority against the land, buildings and other
improvements as additional rent.

         9.  FURNITURE,  FIXTURES AND  EQUIPMENT.  All  furniture,  fixtures and
equipment  furnished  to or  installed  in or on  the  demised  premises  at the
Lessee's  expense  shall  belong to and be the  property  of the  Lessee and the
Lessee shall have the right to remove said  furniture,  fixtures  and  equipment
from said leased  premises  at any time during the term of this Lease,  provided
said  Lessee is not then in default in the  payment or rent or other  charges as
provided in this Lease.

         Lessee  shall  have the  right,  prior to and  during  the term of this
Lease,  at any time and from time to time, to install such  equipment,  fixtures
and furnishings as Lessee may desire to place in the demised  premises,  without
liability by Lessee  therefor,  except for  negligence of Lessee,  its agents or
employees.  Lessor  shall  not be liable to  Lessee  for any  loss,  damage,  or
destruction  of any equipment,  fixtures or furnishings  placed upon the demised
premises by Lessee  except for any such loss,  damage or  destruction  caused by
negligence or willful misconduct on the part of Lessor, its agents,  contractors
or employees.

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         10. QUIET  POSSESSION.  The Lessor agrees that the Lessee,  upon paying
the rent and performing the covenants of this Lease,  may quietly have, hold and
enjoy the demised  premises and all rights  granted  Lessee in this Lease during
the term hereof or any extension thereof.

         11.  INDEMNIFICATION AND NON-LIABILITY OF LESSOR.  Lessee covenants and
agrees to indemnify and save Lessor  harmless  against any and all claims by any
person,  firm,   corporation  or  governmental   authority,   arising  from  the
occupation,  use, possession,  conduct or management of or from any work done in
or about the demised premises or from the subletting of any part thereof. Lessee
also covenants and agrees to indemnify and save Lessor harmless against and from
any and all claims  arising from (1) any breach or default on the part of Lessee
in the  performance  of any  covenant or  agreement  to be  performed  by Lessee
pursuant to this Lease;  and (2) any act of  negligence  by Lessee or any of its
agents, contractors, servants, employees or licensees.

         12. INSURANCE. Lessee will continuously maintain insurance against such
risks  as are  customarily  insured  against  by  businesses  of like  size  and
character,  paying as the same shall become due all premiums in respect thereto,
including but not limited to the following:

             a. General  public  liability  insurance  against  claims of bodily
             injury,  death or  property  damage  occurring  on, in or about the
             demised premises,  such insurance to afford protection to Lessor of
             not less than One Million Dollars  ($1,000,000.00)  with respect to
             bodily  injury  or death to any one  person,  and not less than One
             Million Dollars  ($1,000,000.00)  with respect to any one accident,
             and not less than Two Hundred Fifty Thousand Dollars  ($250,000.00)
             with respect to property damage.  Policies for such insurance shall
             name the Lessor,  Lessee and such lending  institutions that Lessor
             may name as  assureds  as their  respective  interests  may appear.
             Copies of all insurance policies shall be delivered to Lessor.

         13. MAINTENANCE AND REPAIR. During the term of this Lease, Lessor will,
at  its  own  expense,  keep  the  demised  premises  and  all  equipment,   all
improvements,   interior  and  exterior,  including,  without  limitation,  roof

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parking, masonry, heating, air conditioning, electrical and plumbing systems, in
good repair and  operating  condition,  making from  time-to-time  all necessary
repairs and replacements thereof.

         The Lessor hereby  covenants  and agrees that it will  commence  repair
work  within  fifteen  (15)  days  from  receipt  of  written  notice  by Lessee
specifying the necessary repairs.  Failure of the Lessor to reasonably  commence
and complete  such  necessary  repairs  shall  constitute  a default  under this
agreement, and Lessee shall be entitled to all remedies upon default as provided
hereunder,  including  the right,  but not hereby the  obligation,  to make such
repairs  for the Lessor and the  expense  thereof  shall  constitute  and may be
deducted from the rent.

         Lessor shall be required to rebuild or make any repairs,  renewals,  or
replacements  of the  demised  premises  or other  improvements  on the  demised
premises  of any nature  whatever.  Lessee  may,  at its own  expense,  make any
additions,  modifications  or improvements  to the demised  premises that it may
deem desirable for its business  purposes that do not adversely affect the value
of the demised  premises or the  structural  integrity  of any building or other
structure forming a part thereof, provided that such additions, modifications or
improvements  are  located  wholly  within  the  boundary  lines of the  demised
premises.  All  such  renewals,  replacements,   additions,   modifications  and
improvements shall become a part of the demised premises.

         14. ENTRY AND INSPECTION. The Lessee shall permit Lessor and his agents
to enter the demised  premises at all reasonable  times for any of the following
purposes:  to inspect  the same;  to  maintain  the  building  in which the said
premises are located; to make such repairs to the demised premises as the Lessor
may elect to make; to post notices of  non-responsibility  for all  alterations,
additions or repairs. The Lessor shall have such right of entry and the right to
fulfill  the  purpose  thereof  without any rebate of rent to the Lessee for any
loss of occupancy or quiet enjoyment of the demised premises thereby occasioned.

         15. DAMAGE AND CONDEMNATION. If all or any part of the demised premises
is destroyed or damaged by fire or other  casualty  prior to the end of the term
of this  Lease,  the Lessor  will  promptly  repair and  rebuild or replace  the
property  damaged or destroyed to  substantially  the same condition as prior to
such  damage or  destruction.  The Lessor or Lessee,  as the case may be,  shall
apply so much of the net  proceeds  of  insurance  received  on  account of such
damage  or  destruction  as may be  necessary  to the  cost of such  repair  and

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rebuilding.  If such net proceeds  shall be  inadequate  to pay the full cost of
such repair and rebuilding, Lessor will pay the excess cost thereof. Any balance
of such net  proceeds  remaining  after  payment of the cost of such  repair and
rebuilding shall be the property of Lessor and shall be paid to the Lessor.  Any
disbursement  of  insurance  proceeds  by a holder  of a Deed of Trust  shall be
deemed to have been made by the Lessor.  If any holder of a Deed of Trust shall,
in lieu of disbursing  any portion of insurance  proceeds to which the Lessee is
entitled,  apply  them to the  indebtedness  secured  by the Deed of Trust,  the
Lessor shall provide an equivalent sum from other sources.

         16. CONDEMNATION.  If the demised premises or any part thereof shall be
taken by any governmental or quasi-governmental  authority pursuant to the power
of eminent  domain,  Lessee  agrees to make no claim for any rights which Lessee
may have to any  portion  of any  award  made as a result  of such  taking.  The
foregoing notwithstanding,  Lessee shall be entitled to claim, prove and receive
in the  condemnation  proceedings  such awards as may be allowed for  relocation
expenses and for fixtures and other  equipment  installed by it which shall not,
under the terms of this  Lease,  be or become the  property of the Lessor at the
termination  hereof,  but only if such awards shall be made by the  condemnation
court in  addition  to and stated  separately  from the award made by it for the
land and the building or part thereof so taken.

         If the nature,  location or extent of any proposed condemnation is such
that the  demised  building  will be  substantially  taken,  then the Lessor may
terminate  this  Lease by giving at least  sixty (60)  days'  written  notice of
termination  to the Lessee at any time after  such  condemnation  and this Lease
shall terminate on the date specified in such notice.

         17. SUBORDINATION. This Lease is subject and subordinate to any and all
mortgages or Deeds of Trust now or hereafter placed on the property of which the
demised premises are a part.

         18.  CUSTOM  AND  USAGE.  Any law,  usage,  or custom  to the  contrary
notwithstanding  the Lessor  shall  have the right at all times to  enforce  the
covenants  and  conditions  of this  Lease in strict  accordance  with the terms

                                       7

<PAGE>

hereof,  notwithstanding  any  conduct  or custom  on the part of the  Lessor in
refraining from so doing at any time or times.  The failure of the Lessor at any
time to enforce  its rights  under such  covenants  and  conditions  strictly in
accordance  with the same shall not be construed  as having  created a custom in
any way or manner  contrary to the specific  covenants  and  conditions  of this
Lease or as having in any way or manner modified or waived same.

         19. CONTROL OF LESSEE.  Lessee may transfer all or part of its interest
to a Partnership or  Corporation  controlled by Lessee so long as Lessee remains
in the actual  conduct of the business and both the new entity as well as Lessee
are primarily liable.

         20.  EVENTS OF DEFAULT.  Each of the  following  shall be deemed both a
default by the Lessee and a breach of this Lease:

         a. A default in the  payment of the rent herein  reserved,  or any part
         thereof,  for a period of ten (10) days  after it shall  become due and
         payable  (it being  specifically  understood  and agreed  that the term
         "Rent" includes  minimum annual rent, CPI adjustment,  and any payments
         due for any other  consideration  under the lease that is identified as
         rent in this Lease);

         b. A default in the  payment of any other  money  payment due under the
         terms of this Lease.

         c.  The  appointment  of a  receiver  to  take  possession  of  all  or
         substantially all of the assets of the Lessee;

         d.  A general assignment by the Lessee for the benefit of creditors;

         e. The  acquiescence  by the Lessee to the  appointment of a creditor's
         committee;

         f.  The  dissolution  or  the   commencement  of  any  action  for  the
         dissolution or liquidation of the Lessee;

         g. Any action taken or suffered by the Lessee under any  insolvency  or
         bankruptcy act;

                                       8

<PAGE>

         h. The rendering of a final  judgment or decree  against Lessee for the
         payment of money and execution and levy thereupon,  which execution and
         levy be not dismissed within ten (10) days after such date of execution
         and levy.

         21. LESSOR'S RIGHT TO CURE. In the event of any breach hereunder by the
Lessee,  the Lessor may immediately or at any time  thereafter,  without notice,
breach for the account  and at the  expense of the Lessee.  If the Lessor at any
time by reason of such breach, is compelled or elects to pay any sum of money or
incurs any expenses,  including  reasonable  attorney's  fees,  in  instituting,
prosecuting  or defending  any action to enforce or protect the Lessor's  rights
hereunder,  such sum and  expenses,  together with  interest,  costs and damages
shall be deemed to be additional rent hereunder and shall be due from the Lessor
to the Lessor on the first day of the month  following  the Lessor's  payment of
such sums or expenses.

         22. LESSOR'S REMEDIES.  Upon the happening of any of the aforementioned
defaults,  this Lease shall, at Lessor's  option,  cease and determine and shall
operate as a Notice to Quit, any written  Notice to Quit being hereby  expressly
waived.  Lessor may proceed to recover  possession of said premises by virtue of
any legal  process  as may at the time be in  operation  and force in like cases
relative to proceedings  between Lessor and Lessee, and Lessee shall pay for any
Court costs  relative to such  proceedings  and a reasonable  attorney's fee and
Lessor may, at its option,  re-enter  and re-rent the demised  premises  for the
account of the Lessee,  and in such event,  Lessee shall remain liable to Lessor
for any and all deficiencies in the rent under this Lease.

         23. RE-LETTING. Should Lessor elect to re-enter, as herein provided, or
should it take  possession  pursuant  to legal  proceedings  or  pursuant to any
notice provided by law, it may either terminate this Lease, or it may, from time
to time,  without  terminating this Lease, make such reasonable  alterations and
reasonable  repairs as may be  necessary  in order to re-let the  premises,  and
re-let said  premises or any part  thereof for such term or terms  (which may be
for a term  extending  beyond  the term of this  Lease)  and at such  rental  or
rentals and upon other terms and conditions as Lessor in its discretion may deem
advisable;  upon each such  re-letting,  all rentals received by the Lessor from
such re-letting shall be applied first to the payment of any indebtedness, other
than rent due  hereunder  from Lessee to Lessor;  second,  to the payment of any
costs and expenses of such re-letting,  including  brokerage fees and attorney's
fees and of costs of such reasonable alterations and reasonable repairs;  third,

                                       9

<PAGE>

to the payment of rent due and unpaid hereunder;  and the residue, if any, shall
be held by Lessor and  applied in payment of future  rent as the same may become
due and payable hereunder.  If such rentals received from such re-letting during
any month be less than that to be paid  during  that month by Lessee  hereunder,
Lessee  shall  pay any such  deficiency  to  Lessor.  Such  deficiency  shall be
calculated  and paid  monthly.  No such  re-entry or taking  possession  of said
premises by Lessor  shall be  construed  as an election on its part to terminate
this  Lease  unless a  written  notice of such  intention  be given to Lessee or
unless the termination thereof be decreed by a Court of competent  jurisdiction.
Notwithstanding any such re-letting without termination, Lessor may, at any time
thereafter,  elect to terminate this Lease for nay-such previous breach.  Should
Lessor at any time terminate this Lease for any breach, in addition to any other
remedies it may have, it may recover from Tenant  damages it may incur by reason
of  such  breach  including  reasonable  attorney's  fees  and  other  costs  of
recovering the demised premises.

         24. ASSIGNMENT.  The Lessee shall not assign this Lease or any interest
therein,  and shall not sublet the  demised  premises  or any part  thereof,  or
permit  another person or entity to occupy or use the demised  premises  without
consent of said Lessor, which shall not be unreasonably withheld.

          In the event Lessee  assigns,  sublets or allows the occupation or use
of the demised premises by another person or entity, Lessor shall be entitled to
fifty  percent  (50%)  of any  and  all  rental  payments  made or due by such a
sublessee  in excess of the payments  required  hereunder  from the Lessee,  and
Lessee  covenants and agrees to remain primarily liable for all payment required
under this Lease.

         25.  CAPTIONS AND HEADINGS.  Captions and headings are for  convenience
and reference only.

         NOTICES.  All  notices,   approvals,   consents,   requests  and  other
communications  hereunder  shall be in writing  and shall be deemed to have been
given when  delivered or mailed by first class,  registered  or certified  mail,
postage  prepaid,  addressed  to Lessee at 8653  Richmond  Highway,  Alexandria,
Virginia 22309, or if to Lessor, at 8653 Richmond Highway, Alexandria,  Virginia
22309.  The Lessor and Lessee  may, by notice  given  hereunder,  designate  any
further or different addresses to which subsequent notices, approvals, consents,
requests or other communications shall be sent or persons to whose attention the
same shall be directed.

         26. SEVERABILITY.  If any provision of this Lease shall be held invalid
by any Court of competent  jurisdiction,  such holding shall not  invalidate any
other provision hereof.

         27.  VIRGINIA  LAW TO  GOVERN.  This  Lease  shall be  governed  by the
applicable laws of the Commonwealth of Virginia.

         28. ENTIRE UNDERSTANDING.  This Lease embodies the entire understanding
and all agreements  between the parties.  No party has made or shall be bound by
any  agreement or  representation  to the other party which is not expressly set
forth herein.

         29.  BINDING ON  SUCCESSORS.  The  covenants and  conditions  contained
herein shall, subject to the provisions as to assignment,  apply to and bind the
heirs,  successors  and  assigns of all the parties  hereto.  All of the parties
hereto shall be jointly and severally liable hereunder.

         IN WITNESS  WHEREOF,  Lessor and Lessee  have  caused  this Lease to be
executed in their  respective name all as of the day and year first  hereinabove
written.
                  LESSOR:

                  CHESAPEAKE SERVICES CORPORATION,

                  a Virginia Corporation

                  By:  /s/
                           -------------------------
                       EDWARD A. McCULLOCH
                       President

                  LESSEE:

                  DAEDALUS BUILDING SYSTEMS, INC.

                  a Delaware Corporation

                  By:  /s/
                           -------------------------
                       Patricia L. Espino-NAYAR
                       Vice President

                                       12

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