Document:

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                            MEGAMEDIA NETWORKS, INC.
                             2000 STOCK OPTION PLAN
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1.   Purpose.  The purpose of this Plan is to advance the interests of MEGAMEDIA
     NETWORKS,   INC.,  a  Delaware   corporation  (the   "Company"),   and  its
     Subsidiaries  by  providing an  additional  incentive to attract and retain
     qualified and competent persons who provide services to the Company and its
     Subsidiaries,  and upon  whose  efforts  and  judgment  the  success of the
     Company   and  its   Subsidiaries   is  largely   dependent,   through  the
     encouragement of stock ownership in the Company by such persons.

2.   Definitions.  As used herein,  the  following  terms shall have the meaning
     indicated:

     (a)  "Board" shall mean the Board of Directors of the Company.

     (b)  "Code"  shall mean the Internal  Revenue  Code of 1986,  as amended
          from time to time.

     (c)  "Committee"  shall  mean  the  committee  appointed  by the  Board
          pursuant  to  Section  13(a)  hereof,  or,  if such  committee  is not
          appointed, the Board.

     (d)  "Common  Stock" shall mean the Company's  Common  Stock,  par value
          $.01 per share.

     (e)  "Company"  shall  mean  MEGAMEDIA   NETWORKS,   INC.,  a  Delaware
          corporation.

     (f)  "Director" shall mean a member of the Board.

     (g)  "Effective Date" shall mean June 1, 2000.

     (h)  "Fair Market Value" of a Share on any date of reference shall mean the
          fair market  value of a Share of the  Company's  Common  Stock on that
          date,  as  determined  by the  Committee  or the  Board  in a fair and
          uniform  manner.  After the  Publicly-Traded  Date,  Fair Market Value
          shall mean the "Closing  Price" (as defined below) of the Common Stock
          on the  business  day  immediately  preceding  the date of  reference,
          unless  the  Committee  or the  Board  in its  sole  discretion  shall
          determine  otherwise in a fair and uniform manner.  For the purpose of
          determining Fair Market Value, the "Closing Price" of the Common Stock
          on any  business  day  shall be (i) if the  Common  Stock is listed or
          admitted  for  trading  on  any  United  States  national   securities
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          exchange,  or if  actual  transactions  are  otherwise  reported  on a
          consolidated  transaction  reporting  system,  the last  reported sale
          price of  Common  Stock  on such  exchange  or  reporting  system,  as
          reported in any newspaper of general  circulation,  (ii) if the Common
          Stock is quoted on the  National  Association  of  Securities  Dealers
          Automated  Quotations  System  ("NASDAQ"),  or any  similar  system of
          automated  dissemination of quotations of securities  prices in common
          use, the last  reported  sale price of Common Stock on such system or,
          if sales  prices are not  reported,  the mean between the closing high
          bid and low  asked  quotations  for such day of  Common  Stock on such
          system,  as reported in any newspaper of general  circulation or (iii)
          if neither clause (i) or (ii) is applicable, the mean between the high
          bid and low asked  quotations  for the Common Stock as reported by the
          National  Quotation  Bureau,  Incorporated  if at least two securities
          dealers have inserted both bid and asked  quotations  for Common Stock
          on at least five of the ten preceding days.

     (i)  "Incentive  Stock  Option"  shall mean an  incentive  stock  option as
          defined in Section 422 of the Internal Revenue Code.

     (j)  "Non-Qualified  Stock  Option"  shall  mean an  Option  that is not an
          Incentive Stock Option.

     (k)  "Officer" shall mean the Company's  Chairman of the Board,  President,
          Chief  Executive  Officer,   principal  financial  officer,  principal
          accounting  officer,  any vice-president of the Company in charge of a
          principal  business  unit,   division  or  function  (such  as  sales,
          administration   or  finance),   any  other  officer  who  performs  a
          policy-making  function,  or any other  person  who  performs  similar
          policy-making  functions  for the  Company.  Officers of  Subsidiaries
          shall  be  deemed  Officers  of  the  Company  if  they  perform  such
          policy-making  functions for the Company.  As used in this  paragraph,
          the phrase  "policy- making  function" does not include  policy-making
          functions  that are not  significant.  If  pursuant  to Item 401(b) of
          Regulation S-K (17 C.F.R.  229.401(b)) the Company identifies a person
          as an "executive officer," the person so identified shall be deemed an
          "Officer"  even though such person may not  otherwise  be an "Officer"
          pursuant to the foregoing provisions of this paragraph.

     (l)  "Option" (when  capitalized)  shall mean any option granted under this
          Plan.

     (m)  "Option  Agreement"  means the  agreement  between the Company and the
          Optionee for the grant of an option.

     (n)  "Optionee" shall mean a person to whom a stock option is granted under
          this Plan or any person  who  succeeds  to the  rights of such  person
          under this Plan by reason of the death of such person.

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     (o)  "Outside  Director"  shall mean a member of the Board who qualifies as
          an "outside  director"  under Section  162(m) of the Internal  Revenue
          Code and the regulations  thereunder and as a "Non-Employee  Director"
          under Rule 16b-3 promulgated under the Securities Exchange Act.

     (p)  "Plan" shall mean this 2000 Stock Option Plan for the Company.

     (q)  "Publicly-Traded  Date" shall mean the date on which the Common  Stock
          of the Company,  or the stock of any successor  company into which the
          Option or any substituted option or right becomes exercisable pursuant
          to Section 10(c) hereof,  are registered  pursuant to Section 12(b) or
          12(g) of the Securities Exchange Act.

     (r)  "Securities  Exchange Act" shall mean the  Securities  Exchange Act of
          1934, as amended from time to time.

     (s)  "Share" shall mean a share of Common Stock.

     (t)  "Subsidiary"  shall mean any  corporation  (other than the Company) in
          any unbroken chain of  corporations  beginning with the Company if, at
          the time of the granting of the Option, each of the corporations other
          than the last  corporation in the unbroken chain owns stock possessing
          50 percent or more of the total  combined  voting power of all classes
          of stock in one of the other corporations in such chain.

3.   Shares Available for Option Grants. The Committee or the Board may grant to
     Optionees  from time to time Options to purchase an aggregate of up to [One
     Million  Five Hundred  Thousand]  ([1,500,000])  Shares from the  Companys
     authorized and unissued Shares.  If any Option granted under the Plan shall
     terminate,  expire,  or be canceled or  surrendered  as to any Shares,  new
     Options may thereafter be granted covering such Shares.

4.   Incentive and Non-Qualified Options.

     (a)  An Option granted  hereunder shall be either an Incentive Stock Option
          or a Non- Qualified Stock Option as determined by the Committee or the
          Board at the  time of grant of the  Option  and  shall  clearly  state
          whether  it is an  Incentive  Stock  Option  or Non-  Qualified  Stock
          Option.  All Incentive  Stock Options shall be granted within 10 years
          from the effective date of this Plan.  Incentive Stock Options may not
          be granted to any person who is not an  employee of the Company or any
          Subsidiary.

     (b)  Options otherwise qualifying as Incentive Stock Options hereunder will
          not be  treated as  Incentive  Stock  Options  to the extent  that the
          aggregate  fair  market  value  (determined  at the time the Option is
          granted)  of the Shares,  with  respect to which  Options  meeting the
          requirements  of  Section422(b)  of the Code are  exercisable for the
          first time by any individual during any calendar year (under all plans
          of the Company and its parent and subsidiary  corporations  as defined
          in Section 424 of the Code), exceeds $100,000.

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5.   Conditions for Grant of Options.

     (a)  Each Option shall be evidenced by an Option Agreement that may contain
          any term deemed  necessary or desirable by the Committee or the Board,
          provided  such  terms  are  not  inconsistent  with  this  Plan or any
          applicable law.  Optionees shall be (i) those persons  selected by the
          Committee or the Board from the class of all regular  employees of, or
          persons  who  provide  consulting  or other  services  as  independent
          contractors to, the Company or its Subsidiaries,  including  Directors
          and Officers who are regular employees, and (ii) Directors who are not
          employees of the Company or of any Subsidiaries.

     (b)  In  granting  Options,  the  Committee  or the Board  shall  take into
          consideration  the  contribution the person has made to the success of
          the  Company  or  its  Subsidiaries  and  such  other  factors  as the
          Committee  or the Board shall  determine.  The  Committee or the Board
          shall  also  have  the   authority   to  consult   with  and   receive
          recommendations  from officers and other  personnel of the Company and
          its  Subsidiaries  with regard to these matters.  The Committee or the
          Board  may  from  time to time in  granting  Options  under  the  Plan
          prescribe such other terms and conditions  concerning  such Options as
          it deems appropriate,  including,  without limitation, (i) prescribing
          the date or  dates  on which  the  Option  becomes  exercisable,  (ii)
          providing  that the  Option  rights  accrue or become  exercisable  in
          installments  over a period of years, or upon the attainment of stated
          goals or both, or (iii) relating an Option to the continued employment
          of the Optionee  for a specified  period of time,  provided  that such
          terms and  conditions are not more favorable to an Optionee than those
          expressly permitted herein.

     (c)  The Options  granted to employees under this Plan shall be in addition
          to regular salaries, pension, life insurance or other benefits related
          to their employment with the Company or its Subsidiaries.  Neither the
          Plan nor any  Option  granted  under the Plan  shall  confer  upon any
          person any right to  employment  or  continuance  of employment by the
          Company or its Subsidiaries.

     (d)  The Committee or the Board shall have the  discretion to grant Options
          that are exercisable  for unvested shares of Common Stock.  Should the
          Optionee cease to be employed with or perform services for the Company
          (or a  Subsidiary)  while holding such  unvested  shares,  the Company
          shall have the right to  repurchase,  at the  exercise  price paid per
          share, any or all of those unvested shares.  The terms upon which such
          repurchase  right  shall be  exercisable  (including  the  period  and
          procedure for exercise and the  appropriate  vesting  schedule for the
          purchased  shares) shall be  established by the Committee or the Board
          and set forth in the document evidencing such repurchase right.

     (e)  Notwithstanding  any other  provision of this Plan, an Incentive Stock
          Option  shall  not  be  granted  to  any  person  owning  directly  or
          indirectly  (through  attribution under Section 424(d) of the Code) at
          the  date of  grant,  stock  possessing  more  than  10% of the  total
          combined  voting  power of all  classes of stock of the Company (or of
          its parent or subsidiary corporation [as defined in Section 424 of the
          Code] at the date of grant)  unless the option price of such Option is
          at least 110% of the Fair Market  Value of the Shares  subject to such
          Option on the date the Option is granted, and such Option by its terms
          is not  exercisable  after the  expiration of five years from the date
          such Option is granted.

<PAGE>

     (f)  Notwithstanding  any other  provision of this Plan, and in addition to
          any other  requirements of this Plan, the aggregate  number of Options
          granted  to any one  Optionee  may not  exceed  [750,000],  subject to
          adjustment as provided in Section 10 hereof.

6.   Option  Price.  The option price per Share of any Option shall be any price
     determined by the Committee or the Board but shall not be less than the par
     value per Share; provided, however, that in no event shall the option price
     per Share of any Incentive  Stock Option be less than the Fair Market Value
     of the Shares underlying such Option on the date such Option is granted.

7.   Exercise  of  Options.  An Option  shall be deemed  exercised  when (i) the
     Company has received written notice of such exercise in accordance with the
     terms of the Option, (ii) full payment of the aggregate option price of the
     Shares  as to which  the  Option  is  exercised  has been  made,  and (iii)
     arrangements  that are  satisfactory  to the  Committee or the Board in its
     sole discretion have been made for the Optionee's payment to the Company of
     the amount that is necessary  for the Company or  Subsidiary  employing the
     Optionee to withhold in  accordance  with  applicable  Federal or state tax
     withholding requirements. The consideration to be paid for the Shares to be
     issued upon exercise of an Option,  as well as the method of payment of the
     exercise  price and of any  withholding  and  employment  taxes  applicable
     thereto,  shall be determined by the Committee or the Board and may, in the
     discretion  of the  Committee  or the  Board,  consist  of:  (1) cash,  (2)
     certified or official  bank check,  (3) money  order,  (4) Shares that have
     been held by the Optionee for at least six (6) months (or such other Shares
     as the  Company  determines  will not cause the  Company to  recognize  for
     financial accounting purposes a charge for compensation  expense),  (5) the
     withholding of Shares issuable upon exercise of the Option, (6) pursuant to
     a  "cashless  exercise"  procedure,  by  delivery  of a  properly  executed
     exercise notice together with such other documentation, and subject to such
     guidelines,  as the  Board or the  Committee  shall  require  to  effect an
     exercise of the Option and  delivery  to the  Company by a licensed  broker
     acceptable  to the Company of proceeds  from the sale of Shares or a margin
     loan  sufficient  to pay the exercise  price and any  applicable  income or
     employment  taxes, or (7) in such other  consideration  as the Committee or
     the Board deems appropriate,  or by a combination of the above. In the case
     of an Incentive Stock Option,  the permissible  methods of payment shall be
     specified at the time the Option is granted.  The Committee or the Board in
     its sole  discretion may accept a personal check in full or partial payment
     of any Shares.  If the exercise  price is paid,  and/or the  Optionees tax
     withholding  obligation is satisfied,  in whole or in part with Shares,  or
     through the withholding of Shares issuable upon exercise of the Option, the
     value of the Shares  surrendered  or  withheld  shall be their Fair  Market
     Value on the date the Option is  exercised.  The  Committee or the Board in
     its sole  discretion  may, on an individual  basis or pursuant to a general
     program established in connection with this Plan, cause the Company to lend
     money to an Optionee,  guarantee a loan to an Optionee, or otherwise assist
     an Optionee to obtain the cash necessary to exercise all or a portion of an
     Option  granted  hereunder  or to pay any  tax  liability  of the  Optionee
     attributable  to such  exercise.  If the exercise price is paid in whole or
     part with Optionee's  promissory note, such note shall (i) provide for full
     recourse to the maker,  (ii) be  collateralized by the pledge of the Shares
     that the  Optionee  purchases  upon  exercise  of the  Option,  (iii)  bear
     interest  at the prime rate of the  Company's  principal  lender,  and (iv)
     contain  such  other  terms  as the  Committee  or the  Board  in its  sole
     discretion  shall reasonably  require.  No Optionee shall be deemed to be a
     holder  of any  Shares  subject  to an  Option  unless  and  until  a stock
     certificate or  certificates  for those Shares are issued to that person(s)
     under the terms of this Plan.  No  adjustment  shall be made for  dividends
     (ordinary or extraordinary,  whether in cash, securities or other property)
     or  distributions or other rights for which the record date is prior to the
     date the stock  certificate  is issued,  except as  expressly  provided  in
     Section 10 hereof.

<PAGE>

8.   Exercisability  of Options.  Any Option  shall become  exercisable  in such
     amounts,  at such  intervals  and upon such terms as the  Committee  or the
     Board shall  provide in the Option  Agreement  for that  Option,  except as
     otherwise provided in this Section 8:

     (a)  The expiration  date of an Option shall be determined by the Committee
          or the Board at the time of grant,  but in no event shall an Option be
          exercisable after the expiration of 10 years from the date of grant of
          the Option.

     (b)  Unless otherwise provided in any Option, each outstanding Option shall
          become  immediately  fully  exercisable  in the event of a "Change  in
          Control" or in the event that the Committee or the Board exercises its
          discretion to provide a cancellation notice with respect to the Option
          pursuant to Section 9(b) hereof. For this purpose, the term "Change in
          Control" shall mean:

          (i)  Approval by the shareholders of the Company of a  reorganization,
               merger,  consolidation or other form of corporate  transaction or
               series of  transactions,  in each  case,  with  respect  to which
               persons  who were the  shareholders  of the  Company  immediately
               prior to such  reorganization,  merger or  consolidation or other
               transaction do not, immediately thereafter,  own more than 50% of
               the  combined  voting  power  entitled to vote  generally  in the
               election of directors of the reorganized,  merged or consolidated
               company's then outstanding  voting  securities,  in substantially
               the same proportions as their ownership immediately prior to such
               reorganization,  merger, consolidation or other transaction, or a
               liquidation  or  dissolution of the Company or the sale of all or
               substantially  all of the  assets  of the  Company  (unless  such
               reorganization,   merger,   consolidation   or  other   corporate
               transaction,  liquidation,  dissolution  or sale is  subsequently
               abandoned); or

          (ii) Individuals  who,  as of the date on which the  Option is granted
               hereof,  constitute the Board (the  "Incumbent  Board") cease for
               any  reason  to  constitute  at least a  majority  of the  Board,
               provided  that any person  becoming a director  subsequent to the
               date  on  which  the  Option  was  granted  whose  election,   or
               nomination  for  election  by  the  Company's  shareholders,  was
               approved by a vote of at least a majority of the  directors  then
               comprising  the  Incumbent  Board  (other  than  an  election  or
               nomination of an individual whose initial assumption of office is
               in  connection  with an actual  or  threatened  election  contest
               relating to the election of the Directors of the Company, as such
               terms are used in Rule 14a-11 of Regulation 14A of Regulation 14A
               promulgated  under the  Securities  Exchange  Act)  shall be, for
               purposes of this Agreement, considered as though such person were
               a member of the Incumbent Board.; or

          (iii)The  acquisition  (other  than from the  Company)  by any person,
               entity or "group",  within the  meaning of Section  13(d)(3)  or
               14(d)(2) of the Securities Exchange Act, of beneficial  ownership
               (within the meaning of Rule 13-d promulgated under the Securities
               Exchange  Act,  of more than 50% of either  the then  outstanding
               shares of the Company's Common Stock or the combined voting power
               of the Company's then outstanding  voting securities  entitled to
               vote generally in the election of directors (hereinafter referred
               to as the ownership of a "Controlling  Interest") excluding,  for
               this  purpose,  any  acquisitions  by  (1)  the  Company  or  its
               Subsidiaries,  (2) any person,  entity or "group"  that as of the
               date on which the Option is  granted  owns  beneficial  ownership
               (within  the  meaning  of  Rule  13d-3   promulgated   under  the
               Securities

<PAGE>

               Exchange  Act) of a  Controlling  Interest  or (3)  any  employee
               benefit plan of the Company or its Subsidiaries.

     (d)  The Committee or the Board may in its sole  discretion  accelerate the
          date on which any  Option  may be  exercised  and may  accelerate  the
          vesting of any Shares subject to any Option or previously  acquired by
          the exercise of any Option.

9.   Termination of Option Period.

     (a)  Unless  otherwise  provided in any Option  Agreement,  the unexercised
          portion of any Option shall automatically and without notice terminate
          and become  null and void at the time of the  earliest to occur of the
          following:

          (i)  three months after the date on which the Optionee's employment is
               terminated other than by reason of (A) Cause,  which,  solely for
               purposes  of  this  Plan,  shall  mean  the  termination  of  the
               Optionee's   employment  by  reason  of  the  Optionee's  willful
               misconduct  or  gross  negligence,   (B)  a  mental  or  physical
               disability  (within the meaning of Internal  Revenue Code Section
               22(e))  of  the  Optionee  as  determined  by  a  medical  doctor
               satisfactory to the Committee, or (C) death of the Optionee;

          (ii) immediately upon the termination of the Optionee's employment
               for Cause;

          (iii)twelve months after the date on which the  Optionee's  employment
               is  terminated  by  reason  of a mental  or  physical  disability
               (within the meaning of Section  22(e) of the Code) as  determined
               by a medical doctor satisfactory to the Committee or the Board;

          (iv) (A) twelve months after the date of termination of the Optionee's
               employment by reason of death of the Optionee, or , if later, (B)
               three months  after the date on which the  Optionee  shall die if
               such death shall occur  during the one year period  specified  in
               Subsection 9(a)(iii) hereof;

          (v)  the  tenth  anniversary  of the  date on  which  the  Option  was
               granted.

All references herein to the termination of the Optionee's  employment shall, in
the case of an Optionee  who is not an employee of the Company or a  Subsidiary,
refer to the termination of the Optionee's service with the Company.

     (b)  To  the  extent  not  previously  exercised,  (i)  each  Option  shall
          terminate   immediately  in  the  event  of  (1)  the  liquidation  or
          dissolution  of  the  Company,  or  (2)  any  reorganization,  merger,
          consolidation  or other  form of  corporate  transaction  in which the
          Company  does not  survive,  unless the  successor  corporation,  or a
          parent or subsidiary of such successor corporation, assumes the Option
          or substitutes an equivalent option or right pursuant to Section 10(c)
          hereof, and (ii) the Committee or the Board in its sole discretion may
          by written notice (cancellation  notice) cancel,  effective upon the
          consummation  of any  corporate  transaction  described in  Subsection
          8(b)(i)  hereof in which the  Company  does  survive,  any Option that
          remains  unexercised  on such date.  The  Committee or the Board shall
          give written  notice of any proposed  transaction  referred to in this
          Section 9(b) a reasonable period of time prior to the closing date for
          such transaction (which notice may

<PAGE>

          be given  either  before or after  approval of such  transaction),  in
          order that Optionees may have a reasonable period of time prior to the
          closing date of such transaction  within which to exercise any Options
          that then are  exercisable  (including  any  Options  that may  become
          exercisable  upon the closing date of such  transaction).  An Optionee
          may  condition his exercise of any Option upon the  consummation  of a
          transaction referred to in this Section 9(b).

10.  Adjustment of Shares.

     (a)  If at any time while the Plan is in effect or unexercised  Options are
          outstanding,  there shall be any increase or decrease in the number of
          issued and  outstanding  Shares  through  the  declaration  of a stock
          dividend  or  through  any  recapitalization   resulting  in  a  stock
          split-up, combination or exchange of Shares, then and in that event:

          (i)  appropriate  adjustment  shall be made in the  maximum  number of
               Shares available for grant under the Plan, or available for grant
               to any person under the Plan, so that the same  percentage of the
               Company's  issued and  outstanding  Shares  shall  continue to be
               subject to being so optioned; and

          (ii) the  Board or the  Committee  may,  in its  discretion,  make any
               adjustments it deems  appropriate in the number of Shares and the
               exercise price per Share thereof then subject to any  outstanding
               Option,  so that the same percentage of the Companys  issued and
               outstanding  Shares shall remain  subject to purchase at the same
               aggregate exercise price.

     (b)  Unless otherwise  provided in any Option Agreement,  the Committee may
          change the terms of Options  outstanding under this Plan, with respect
          to the option price or the number of Shares subject to the Options, or
          both,  when, in the  Committee's  sole  discretion,  such  adjustments
          become appropriate so as to preserve benefits under the Plan.

     (c)  In the event of a  proposed  sale of all or  substantially  all of the
          Companys assets or any reorganization, merger, consolidation or other
          form of corporate  transaction  in which the Company does not survive,
          where the  securities  of the  successor  corporation,  or its  parent
          company, are issued to the Company's shareholders,  then the successor
          corporation  or a parent of the  successor  corporation  may, with the
          consent of the Committee or the Board,  assume each outstanding Option
          or  substitute  an  equivalent  option  or  right.  If  the  successor
          corporation,  or its  parent,  does not cause  such an  assumption  or
          substitution  to occur, or the Committee or the Board does not consent
          to  such  an  assumption  or  substitution,  then  each  Option  shall
          terminate  pursuant to Section  9(b) hereof upon the  consummation  of
          sale, merger, consolidation or other corporate transaction.

     (d)  Except as otherwise  expressly  provided  herein,  the issuance by the
          Company of shares of its  capital  stock of any class,  or  securities
          convertible  into  shares of  capital  stock of any  class,  either in
          connection  with a  direct  sale or upon the  exercise  of  rights  or
          warrants  to  subscribe  therefore,  or upon  conversion  of shares or
          obligations  of the  Company  convertible  into  such  shares or other
          securities,  shall not affect,  and no  adjustment  by reason  thereof
          shall be made to, the  number of or  exercise  price for  Shares  then
          subject to outstanding Options granted under the Plan.

<PAGE>

     (e)  Without  limiting the  generality of the  foregoing,  the existence of
          outstanding  Options  granted  under the Plan  shall not affect in any
          manner  the  right or  power of the  Company  to  make,  authorize  or
          consummate   (i)   any   or   all   adjustments,    recapitalizations,
          reorganizations or other changes in the Company's capital structure or
          its business;  (ii) any merger or consolidation of the Company;  (iii)
          any  issue  by  the  Company  of  debt  securities,  or  preferred  or
          preference   stock  that  would  rank  above  the  Shares  subject  to
          outstanding  Options;  (iv)  the  dissolution  or  liquidation  of the
          Company;  (v) any sale,  transfer or  assignment of all or any part of
          the assets or business of the Company; or (vi) any other corporate act
          or proceeding, whether of a similar character or otherwise.

11.  Transferability  of Options and Share No Incentive Stock Option, and unless
     the prior written  consent of the Committee or the Board is obtained (which
     consent  may be  withheld  for any  reason)  and the  transaction  does not
     violate the  requirements  of Rule 16b-3  promulgated  under the Securities
     Exchange Act no Non-Qualified Stock Option, shall be subject to alienation,
     assignment,  pledge, charge or other transfer other than by the Optionee by
     will or the laws of descent and  distribution,  and any attempt to make any
     such  prohibited  transfer shall be void.  Each Option shall be exercisable
     during the  Optionees  lifetime only by the Optionee,  or in the case of a
     Non-Qualified  Stock Option that has been assigned or transferred  with the
     prior written consent of the Committee or the Board,  only by the permitted
     assignee.

12.  Issuance of Shares.

     (a)  Notwithstanding  any other  provision of this Plan,  the Company shall
          not be obligated  to issue any Shares  unless it is advised by counsel
          of its selection that it may do so without violation of the applicable
          Federal and State laws  pertaining to the issuance of securities,  and
          may  require  any  stock  so  issued  to bear a  legend,  may give its
          transfer agent instructions,  and may take such other steps, as in its
          judgment are reasonably required to prevent any such violation.

     (b)  As a condition to any sale or issuance of Shares upon  exercise of any
          Option,  the  Committee  or the Board may require such  agreements  or
          undertakings  as the  Committee  or the  Board may deem  necessary  or
          advisable  to  facilitate   compliance  with  any  applicable  law  or
          regulation including, but not limited to, the following:

          (i)  a representation and warranty by the Optionee to the Company,  at
               the time any Option is exercised, that he is acquiring the Shares
               to be issued to him for investment and not with a view to, or for
               sale in connection with, the distribution of any such Shares; and

          (ii) a  representation,  warranty and/or  agreement to be bound by any
               legends endorsed upon the certificate(s) for the Shares that are,
               in the  opinion  of the  Committee  or the  Board,  necessary  or
               appropriate to facilitate  compliance  with the provisions of any
               securities  laws  deemed  by the  Committee  or the  Board  to be
               applicable to the issuance and transfer of those Shares.

<PAGE>

13.  Administration of the Plan.

     (a)  The Plan shall be  administered  by the Board or, at the discretion of
          the Board,  by a committee  appointed  by the Board (the  Committee)
          which shall be composed  of two or more  Directors.  At any time after
          the Publicly  Traded Date,  the  membership of the Committee  shall be
          constituted  so as to  comply at all  times  with the then  applicable
          requirements for Outside Directors of Rule 16b-3 promulgated under the
          Securities  Exchange Act and Section  162(m) of the  Internal  Revenue
          Code. The Committee shall serve at the pleasure of the Board and shall
          have the powers  designated  herein and such other powers as the Board
          may from time to time confer upon it.

     (b)  The Committee or the Board may grant Options  pursuant to this Plan to
          any persons to whom Options may be granted under Section 5(a) hereof.

     (c)  The  Committee  or the Board,  from time to time,  may adopt rules and
          regulations   for  carrying   out  the  purposes  of  the  Plan.   The
          determinations  of the Committee or the Board, and its  interpretation
          and construction of any provision of the Plan or any Option Agreement,
          shall be final and conclusive.

     (d)  Any and all decisions or determinations of the Committee shall be made
          either (i) by a majority  vote of the  members of the  Committee  at a
          meeting or (ii) without a meeting by the unanimous written approval of
          the members of the Committee.

14.  Withholding or Deduction for Taxes. If at any time specified herein for the
     making of any  issuance or  delivery  of any Option or Common  Stock to any
     Optionee,  any  law or  regulation  of any  governmental  authority  having
     jurisdiction  in the premises shall require the Company to withhold,  or to
     make any deduction for, any taxes or to take any other action in connection
     with the  issuance or delivery  then to be made,  the  issuance or delivery
     shall be  deferred  until the  withholding  or  deduction  shall  have been
     provided for by the Optionee or beneficiary,  or other  appropriate  action
     shall have been taken.

15.  Interpretation.

     (a)  As it is the  intent of the  Company  that  after the  Publicly-Traded
          Date,   the  Plan  shall  comply  in  all  respects  with  Rule  16b-3
          promulgated  under the  Securities  Exchange Act  ("Rule-16b-3"),  any
          ambiguities or  inconsistencies  in  construction of the Plan shall be
          interpreted to give effect to such intention,  and if any provision of
          the  Plan is found  not to be in  compliance  with  Rule  16b-3,  such
          provision  shall be deemed  null and void to the  extent  required  to
          permit the Plan to comply with Rule 16b-3.  The Committee or the Board
          may from time to time adopt rules and  regulations  under,  and amend,
          the Plan in furtherance of the intent of the foregoing.

     (b)  The Plan and any Option  Agreements  entered into pursuant to the Plan
          shall be  administered  and  interpreted  so that all Incentive  Stock
          Options granted under the Plan will qualify as Incentive Stock Options
          under  Section-422  of the Code.  If any  provision of the Plan or any
          Option Agreement  relating to an Incentive Stock Option should be held
          invalid for the granting of Incentive Stock Options or illegal for any
          reason, that determination  shall not affect the remaining  provisions
          hereof,  but  instead  the  Plan  and the  Option  Agreement  shall be
          construed and enforced as if such provision had never been included in
          the Plan or the Option Agreement.

<PAGE>

     (c)  This Plan shall be governed by the laws of the State of [Delaware].

     (d)  Headings  contained in this Plan are for convenience only and shall in
          no manner be construed as part of this Plan.

     (e)  Any reference to the masculine,  feminine, or neuter gender shall be a
          reference to such other gender as is appropriate.

16.  Amendment and  Discontinuation  of the Plan. The Committee or the Board may
     from time to time  amend,  suspend  or  terminate  the Plan or any  Option;
     provided,  however, that, any amendment to the Plan shall be subject to the
     approval of the  Companys  shareholders  if such  shareholder  approval is
     required  by any  federal or state law or  regulation  (including,  without
     limitation,  Rule 16b-3 or to comply with  Section  162(m) of the  Internal
     Revenue  Code) or the rules of any Stock  exchange or  automated  quotation
     system on which the Common  Stock may then be listed or granted.  Except to
     the extent provided in Sections 9 and 10 hereof,  no amendment,  suspension
     or  termination  of  the  Plan  or  any  Option  issued   hereunder   shall
     substantially impair the rights or benefits of any Optionee pursuant to any
     Option previously granted without the consent of the Optionee.

17.  Effective Date and Termination Date. The effective date of the Plan is June
     1,  2000 and the  Plan  shall  terminate  on the  10th  anniversary  of the
     Effective  Date.  The Plan shall be  submitted to the  shareholders  of the
     Company  for their  approval  and  adoption  and Options  hereunder  may be
     granted  prior to such  approval  and  adoption  but  contingent  upon such
     approval and adoption.--------------------------

                                 LEASE AGREEMENT

                           --------------------------

                                    LANDLORD

                            KYUNG PARK AND BANG PARK

                                       AND

                                     TENANT

                            MEGAMEDIA NETWORKS, INC.

                                 - Third Floor -

                                 LEASE AGREEMENT

         THIS LEASE was entered into effective the ___ day of June, 1999, by and
between KYUNG PARK and BANG PARK, his wife ("Landlord") and MEGAMEDIA  NETWORKS,
INC., a Florida  Corporation  ("Tenant").  In consideration of the obligation of
Tenant  to pay  rent as  herein  provided  and in  consideration  of the  terms,
covenants,  and conditions of this  agreement,  Landlord  leases to Tenant,  and
Tenant takes from Landlord the Premises for the Term as provided below.

                                    ARTICLE I

                                    ---------

                     DEFINITIONS AND ENUMERATION OF EXHIBITS

         1.1  DEFINITIONS.  In addition to other terms which are defined in this
lease,  the  following  terms shall have the  meanings  and only such  meanings,
unless  such  meanings  are  expressly  limited or  expanded  elsewhere  in this
agreement:

         (a) BUILDING. (i) The real estate depicted or described on Exhibit "A",
(ii) such  contiguous real estate as Landlord may from time to time designate in
writing as being  included in Building,  (iii) the  buildings  and  improvements
constructed on such real estate together with all alterations and additions, and
(iv) such improvements as may be constructed on such real estate after the
Rental Commencement Date.
<PAGE>

         (b) THE  PREMISES.  That  portion of Building  which is outlined on the
floor plan or plans,  marked  Exhibit  "B".  The  Premises are deemed to contain
approximately  3663 square feet of Gross  Rentable Area being the Third floor of
the existing  building,  but  reserving and excepting to Landlord the use of the
roof and  exterior  walls and the right to install,  maintain,  use,  repair and
replace pipes, ducts, conduits, wires and appurtenant fixtures,  leading through
the Premises in locations which will not materially  interfere with Tenant's use
thereof.  The  parties  accept the above  computation  as the actual size of the
premises  and  waive  any  right  to  seek  adjustments  if it  is  subsequently
determined to be incorrect.

         Tenant has an option to add the  second  floor of the  building  to the
Premises.  This option shall expire on August 10, 1999.  Tenant may exercise the
option  by  notifying  Landlord  in  writing  prior to the  expiration  date and
tendering  therewith the security deposit of $3,000.00 and the first months rent
together with prorated rent for any partial month.

         (c) READY FOR OCCUPANCY. The Premises are accepted "as is" and are
therefore ready for occupancy by Tenant, subject to completion of any
improvements by Tenant for its benefit. Tenant may take occupancy upon execution
of this lease and payment of the required deposit.

         (d) RENTAL COMMENCEMENT DATE. The rental commencement date shall be
June 14, 1999.

         (e) LEASE TERM. June 4, 1999 until May 30, 2002, unless extended
pursuant to the option to extend for the term of two (2) years as provided
below.

         (f)      MINIMUM GUARANTEE RENTAL.  The Base Rent provided herein.

         (g) ADVANCED DEPOSIT. One month's rent of $4,273.50 plus $256.41 sales
tax paid with execution of the Lease (to be applied to the first obligations
that accrue hereunder).

         (h) SECURITY DEPOSIT. $5,000.00. Additional $3,000.00 if option to add
second floor is exercised.

         (i) TENANT'S WORK. Not Applicable.

         (j) LANDLORD'S WORK. None.

         (k) LANDLORD'S MAILING ADDRESS:

                  KYUNG and BANG PARK
                  21 South Orange Avenue
                  Orlando, Florida 32801

             Or such other address as Landlord designates to Tenant in writing.

         (l) TENANT'S MAILING ADDRESS:

                  MEGAMEDIA NETWORK, INC.
                  ATTN: WILLIAM MOBLEY
                  829 Hickory Hill Court
                  Orlando, Fl 32828

             Or such other address as Tenant designates in writing to Landlord.

         (m) USE OF PREMISES. The Premises may be used only for a business
office.

         (n) LANDLORD'S CONTRIBUTION TO TENANT'S WORK. None.

<PAGE>

         (o) COMMON  AREAS.  Those areas of the Building  which are from time to
time for  joint use by the  tenants  of  Building  or by the  public  including,
without  limiting  the  generality  of  the  elevator,  fire  escapes,  delivery
passages,  walkways,  backyard and  landscaped  areas which are not leased to or
reserved for individual tenants.

         (p) GROSS RENTABLE AREA.  Floor area designed for tenant  occupancy and
exclusive  use which is the third  floor of the  Building  and will  include the
second floor if the Tenant exercises the option to include it in the Premises.

         (q) ASSESSMENT PERCENTAGE. 36%. This percentage is intended to
represent Tenant's Premises proportionate size of the Gross Rental Area of the
Building. The parties agree to use

                                        2

this  percentage even if there are minor  variations from the actual number.  If
the Tenant  exercises the option to include the second floor in the Premises the
total Assessment Percentage shall increase by 28% and total 64%.

         (r) LEASE YEAR.  The Term "Lease  Year" shall mean,  in the case of the
first Lease Year,  that  period from the Rental  Commencement  Date to the first
succeeding  December 31;  thereafter,  "Lease  Year" shall mean each  successive
twelve (12) calendar  month period  following the  expiration of the first Lease
Year,  in each case  commencing  on  January 1 and  ending  the next  succeeding
December 31,  except that in the event of the  termination  of this lease on any
day other than  December  31,  then the last Lease Year shall be the period from
the end of the preceding Lease Year to such date of termination.

         (s) LIABILITY INSURANCE LIMITS. $1,000,000 with respect to injuries to
or death of any one person and $1,000,000.00 with respect to any one occurrence
and $500,000.00 with respect to property damage or a combined single limit of
$2,000,000.00. Limits are subject to adjustment as provided in this Lease.

         1.2  EXHIBITS.  The exhibits  enumerated  in this section (if used) and
attached to this lease are  incorporated in this lease by this reference and are
to be construed as a part of this lease.

         (a) EXHIBIT "A". Building.

         (b) EXHIBIT "B". General Floor area plan of Premises and building
containing Premises.

         (c) EXHIBIT "C". (DELETED)

         (d) EXHIBIT "D". Rules and Regulations. (None at this time).

         (e) EXHIBIT "E". Guarantee.

         (f) EXHIBIT "F". (NONE)

                                   ARTICLE II

                                   ----------

               CONSTRUCTION, ACCEPTANCE AND FINANCING OF PREMISES

         2.1 LANDLORD'S CONSTRUCTION. The Landlord's work has been completed and
the Premises are accepted by the Tenant "as is".

         2.2  TENANT'S  PLANS.  Tenant  agrees to submit to Landlord the date of
this Lease,  plans and  specifications in such detail as Landlord may reasonably
for  work  which  Tenant  proposes  to  do  on  the  Premises.  Such  plans  and
specifications  shall comply with all  requirements as set forth herein.  Tenant
shall not commence work on the Premises  until  Landlord has approved such plans
and specifications in writing, which approval shall not be unreasonably withheld
or delayed.

<PAGE>

                                        3

         2.3  TENANT'S  WORK.  Tenant  agrees to proceed  with due  diligence to
perform  the work  described  in such plans and  specifications  which have been
approved by Landlord,  and to install its  fixtures,  furniture and equipment on
the  Premises.  By  occupying  the  Premises,  Tenant  shall be  deemed  to have
acknowledged  that the  Landlord  has  complied  with all of its  covenants  and
obligations with respect to the construction of the Premises, except for defects
in Landlord's  work which are latent at the time the Premises are  occupied.  In
the event of any dispute  concerning  work performed or required to be performed
in the Premises by Landlord or Tenant,  the matter in dispute shall be submitted
to  Landlord's  architect for  determination  and his  certificate  with respect
thereto  shall be binding on  Landlord  and  Tenant.  Tenant will pay all impact
fees,  permitting  costs and other charges  associated with the construction and
opening of the Premises for business.

         2.4 OCCUPANCY. (Deleted)

         2.5 LEASE MODIFICATION. (Deleted)

         2.6 SITE MODIFICATIONS. Landlord may do any one or more of the
following with respect to the Building and the Common Areas provided that
reasonable access to the Premises shall not be materially impaired: (i)
construct alterations and signs; (ii) construct additions thereto; (iii) connect
to then-existing buildings.

                                   ARTICLE III

                                   -----------

                            TERM AND OPTION TO EXTEND

         3.1 INITIAL TERM. The Initial Term shall run from the Rental
Commencement Date until May 30, 2002.

         3.2 OPTION TO EXTEND.  Tenant  shall have the option to extend the Term
for two (2) years,  upon the same terms and conditions as in effect  immediately
prior to each  extension  except that the monthly  Base Rent shall be the amount
established  below.  The option to renew shall be deemed  waived  unless  Tenant
notifies  Landlord in writing at least one hundred and twenty  (120) days before
the expiration of the existing Term.

         Conditions to the valid exercise of the renewal term are:  Tenant shall
not be in default hereunder beyond any applicable period to cure (a) at the time
of exercise of the option through  commencement of the renewal term, or (b) more
than once during any twelve (12) month period prior to the exercise date.

         3.3 HOLDING  OVER.  If Tenant  continues in  possession of the Premises
after  expiration  of the Term without the written  consent of Landlord,  Tenant
shall be deemed a tenant at sufferance.  Landlord's  acceptance of payments from
Tenant during any such holdover shall not convert Tenant's occupancy to anything
other that a tenancy at sufferance,  nor shall it be deemed to renew the term of
this Lease. During any such tenancy at sufferance,  Tenant shall pay during each
month of the period of Tenant's  holdover double the Monthly Base Rental charged
Tenant during the month  immediately  preceding the expiration or termination of
this Lease.

                                        4

Alternatively,  at the  election  of  Landlord  expressed  in written  notice to
Tenant,   and  not  otherwise,   Tenant's  retention  of  possession  after  the
termination  hereof shall constitute a renewal of this Lease for one year at the
annual Base Rental that would have been in effect for and  additional  year; but
acceptance by Landlord of rent after  termination shall not of itself constitute
a  renewal.  If  Tenant  continues  in  possession  of the  Premises  after  the
expiration of the term of this Lease with the prior written  consent of Landlord
Tenant shall become a tenant at will of the Premises. In that event, either

<PAGE>

party may terminate such tenancy by giving thirty (30) days prior written notice
to the  other  party of such  termination.  All terms of this  Lease,  so far as
applicable shall govern Tenant's  occupancy as a Tenant at will, except that the
Base  Monthly  Rental for such  tenancy  shall be at a rate equal to 200% of the
Base Monthly  Rental paid by Tenant at the time of the expiration  hereof.  This
provision  shall not be construed to confer any rights  whatsoever  on Tenant to
hold over without written consent of Landlord.

                                   ARTICLE IV

                                   ----------

                                      RENT

         4.1 BASE RENT. Tenant shall pay to the Landlord the rent in equal
monthly installments in advance on the first day of each month. The Base Rent
for the Term is as follows:

         (a)      June 1, 1999 through and including May 30, 2000
  $4,273.50 per month

         (b)      June 1, 2000 through and including May 30, 2001
  $4,578.75 per month

         (c)      June 1, 2001 through and including May 30, 2002
  $4,884.00 per month

         If the Tenant exercises the option to acquire the second floor then the
following additional rent shall be due:

         (a)      Date option is exercised through and including May 30, 2000
$2,367.50 per month

         (b)      June 1, 2000 through and including May 30, 2001
    $2,604.25 per month

         (c)      June 1, 2001 through and including May 30, 2002
    $2,841 .00 per month

         If the Tenant  exercises the option to extend the Term, for Lease Years
commencing  with 2002,  the Base Rent shall be adjusted in, and  effective  for,
January of each Lease Year by increasing,  never decreasing,  the previous Lease
Year's monthly rent by the percentage  increase in the "Consumer Price Index" as
published by the Bureau of Labor  Statistics of the United States  Department of
Labor with adjustments being determined by using as a basis the index number for
the then  last  preceding  October,  compared  to the same  index  for the month
preceding the Rental Commencement Date of this Lease. For example, Base Rent for
2002 shall be computed by comparing the index for December,  2001 with the index
for December, 1999.

         NOTE: Notwithstanding the foregoing, this adjustment shall not affect
the rent for June 1, 2001 through May 30, 2002.

                                        5

         Should  such  index  number  become  unavailable,  or  if  there  is  a
substantial  change in the method of computing  the index,  the index to be used
will be the  "Index  Number  of  Wholesale  Prices of All  Commodities  Revised"
published by the United States Department of Labor; if the aforementioned  index
also become  unavailable or its method of computation is substantially  changed,
the index to be used is the "Index of the  General  Price  Level"  issued by the
Federal Reserve Bank of New York. In the event that the parties are unable to

<PAGE>

agree with regard to the amount of such  increase,  either party may at any time
submit the  controversy to arbitration in Orange County,  Florida,  according to
the rules of the American  Arbitration  Association.  The cost  incurred by such
determination shall be shared equally by the parties and the award therefrom may
be  enforced  in any  court of  competent  jurisdiction.  The  Tenant  shall not
withhold  rent  if  there  is a  misunderstanding  or  problem  determining  the
adjustment.

         RENTAL  ADJUSTMENT.  Notwithstanding  the  foregoing,  If the option to
extend  the Term is  exercised,  the Base  Rent for the  shall be  adjusted  and
changed by  increasing  the Base Rent by whichever of the  following  procedures
results in the largest Base Rent:

         (a) The first 12 months  Base Rent shall be 3% larger than the rate for
             the prior 12 months;  the second 12 month  period shall have a Base
             Rent 3% higher than the prior 12 months Base Rent.

         (b) The CPI adjustment provided for above.

         4.2 ADDITIONAL. (deleted)

         4.3 NO SETOFF.  It is the purpose  and intent of the  parties  that the
rent is absolutely net and shall be paid without offset, counterclaim, abatement
or defense, and this Lease shall not be subject to termination by Tenant for any
cause unless expressly provided herein.

         4.4 LATE FEE.  All rent and charges  hereunder  are to be  delivered or
mailed to Landlord  on or before the eighth  (8th)  business  day of each month.
Tenant shall pay a late fee of $200 for each  payment that is late,  the parties
agreeing that this represents an agreed estimation of the liquidated damages and
is not to be considered interest,  forfeiture or penalty.  Landlord shall notify
Tenant  of the late  receipt  and the late fee  shall be due with the next  rent
obligation.  This  provision is not intended to waive any other remedy  Landlord
may have.

         4.5 SALES TAX.  Tenant  shall also pay all sales and other taxes now or
hereafter  imposed on Tenant in connection  with this  agreement  which shall be
paid to Landlord when Landlord is required by law to collect the tax.

         4.6 RENT ABATEMENT AND RENT INSURANCE. (deleted)

         4.7 LIEN.  Landlord  shall have a lien on all property of the Tenant on
the Premises or in the  Shopping  Center as security for the payment of all sums
due under this lease and  Landlord  shall have,  in addition to any other rights
allowed  by  law,  all of the  rights  of a  secured  party  under  the  Uniform
Commercial Code as adopted by Florida, including a right to possession of

                                        6

the  property  upon a  default  by  Tenant.  The lien of the  Landlord  shall be
subordinate  to any prior  liens  encumbering  said  property  at the time it is
brought upon the Premises.

                                    ARTICLE V

                                    ---------

                                  COMMON AREAS

         5.1 USE OF COMMON AREAS. Tenant, and its licensees, invitees, employees
and clients shall have the non-exclusive right to use the Common Areas,  subject
to such  reasonable  rules and  regulations  as  Landlord  may from time to time
prescribe.  Tenant shall not solicit business,  distribute  handbills or display
merchandise or signs within the Common Area.

         The entryway  depicted on Exhibit "B" attached  hereto shall be for the
exclusive  use of the  Tenants of the third floor and second  floor.  Tenant may
install an access control device on the gate if the second floor is included in

<PAGE>

the Premises.  Tenant shall maintain the entryway at its expense,  including the
landscaping  within the  entryway,  however,  Tenant may,  by written  notice to
Landlord,  require  Landlord to assume  responsibility  for same as provided for
below.

         The  grounds at the rear of the  Building  and the  landscaping  in the
front  shall be for the  exclusive  use of the  tenant  of the  first  floor and
expenses of maintaining  same shall be paid solely by the Landlord or the tenant
of the first floor

         5.2 MAINTENANCE. Except as provided herein, Landlord shall maintain the
Common  Areas in good  order,  condition,  and repair.  Tenant  agrees to pay to
Landlord,  as  additional  rent,  its share of any and all expenses  incurred by
Landlord with respect to the operation,  maintenance  and repair,  of the Common
Areas,  including,  without  limiting  the  generality  of  the  foregoing,  the
following:  landscaping,  utilities,  fire protection,  security  services,  all
insurance  coverages  (including  rent  coverage)  carried by  Landlord  for the
Building,  and overhead costs equal to fifteen  percent (15%) of all such costs.
Notwithstanding  the  foregoing to the  contrary,  Landlord may cause all or any
portion of the  foregoing  services to be provided by  independent  contractors.
Common  area  maintenance  shall be deemed to  include  the  normal  maintenance
expenses  incurred  in the  maintenance  of the  exterior  walls and roof of the
building.

         Tenant shall be responsible  for the day to day  maintenance of the air
conditioning (including regular replacement of the filters) system servicing the
third floor (and the second floor if Tenant includes it in the Premises) and the
elevator which Landlord  represents are in good order and repair.  If the Tenant
does not include the elevator in the Premises  the  Landlord  shall  require any
Tenant  who  subsequently  leases  the  second  floor to  contribute  1/3 of the
maintenance  cost of the  elevator  which  Landlord  shall  be  responsible  for
collecting and timely remitting to Tenant. The Landlord shall be responsible for
any major repairs or  replacements  of the air  conditioning  or elevator system
reasonably deemed other than normal maintenance items.

         5.3  ASSESSMENTS.  The  share  to be  paid  by  Tenant  shall  be  that
percentage of such costs which the Gross  Rentable Area of the Premises bears to
the total Gross  Rentable  Area of the Building  which is set forth in Article I
subject to the  adjustments  in  Paragraph  5.2 above  regarding  the  elevator.
Landlord may, at its option, make monthly or other periodic charges

                                        7

based upon the estimated  annual cost of operation and maintenance of the Common
Areas,  payable  in advance  but  subject  to  adjustment  after the end of each
calendar year on the basis of the actual costs for such year. Within ninety (90)
days  after the close of  calendar  year,  upon  written  request  from  Tenant,
Landlord will furnish to Tenant a detailed statement of the expenses relating to
the Common Areas for such year, such statement to include Tenant's proportionate
share of the expenses relating to the Common Areas computed as herein provided.

                                   ARTICLE VI

                                   ----------

                            USE AND CARE OF PREMISES

         6.1 BUSINESS  OPERATION.  The Premises  shall not be used for any other
purpose  than that  provided  in Section  1.1.  Tenant  shall  occupy the Leased
Premises,  conduct its business and control its agents, employees,  invitees and
visitors in such a manner as is lawful, reputable and will not create a nuisance
to other tenants in the Property.  Tenants shall not permit any operation  which
emits any odor or matter which intrudes into other portions of the Property, use
any  apparatus  or machine  which makes undue noise or caused  vibration  in any
portion of the Property or otherwise  interfere with, annoy or disturb any other
tenant in its normal  business  operations or Landlord in its  management of the
Property. Tenant shall neither permit any waste on the Leased Premises nor allow
the Leased Premises to be used in any way which would, in the opinion of

<PAGE>

Landlord,  be extra  hazardous  on  account  of fire or  which  would in any way
increase or render void the fire insurance on the Property.

         6.2 LAWFUL  COMPLIANCE.  In the use and occupancy of the Premises,  the
Tenant  shall  comply  with all laws and  ordinances  and all  valid  rules  and
regulations of any governmental  authority having jurisdiction over the Premises
and all  requirements of any public or private agency having  authority over the
Premises.

         6.3 HAZARDOUS  SUBSTANCES.  Tenant  represents and warrants to Landlord
that the activities  Tenant will conduct on the Premises pose no hazard to human
health or the environment nor do they violate any applicable  federal,  state or
local laws,  ordinances,  rules or regulations pertaining to Hazardous Materials
(to be hereinafter  defined) or industrial  hygiene or environmental  conditions
("Environmental Laws"). Tenant shall not cause or permit the Premises to be used
for the generation handling,  storage,  transportation,  disposal, or release of
any  Hazardous  Materials  except as  exempted  or  permitted  under  applicable
Environmental  Laws and  Tenant  shall not cause or permit the  Premises  or any
activities  conducted thereunto be in violation of any applicable  Environmental
Laws. Tenant shall acquire and maintain all permits, approvals, licenses and the
like required by Environmental Laws for Tenant's  activities on the Premises and
Tenant shall keep those permits approvals,  licenses,  and the like current, and
shall comply with all regulations, rules and restrictions thereto. Tenant agrees
to  indemnify  Landlord  and hold  Landlord  harmless  from all claims,  losses,
damages  (including all foreseeable  and  unforeseeable  consequential  damages)
liabilities,  fines, penalties, and charges, and all costs and expenses incurred
in  connection  therewith  (including  without  limitation  attorney's  fees and
expenses)  directly or  indirectly  resulting in whole or in part from  Tenant's
violation  of  any  Environmental  Laws  applicable  to the  Premises  or to any
activity conducted thereon, or from any

                                        8

use,  generation,  handling,  storage,  transportation,  disposal  or release of
Hazardous  Materials at or in connection  with the  Premises,  or any cleanup or
other  remedial  measures  required  with  respect  to the  Premises  under  any
Environmental Laws. Tenant shall reimburse Landlord  immediately upon demand for
all sums paid and costs  incurred  by  Landlord  with  respect to the  foregoing
matters.  This indemnity  shall survive the full  performance  and expiration of
this  Lease and shall  inure to the  benefit of any  transferee  of title to the
Premises.  For  purposes of this Lease,  the term  "Hazardous  Materials"  shall
include any  substances  defined as or included in the  definition of "hazardous
substances",  "hazardous  wastes",  "hazardous  materials",  "toxic substances",
"contaminants",  "regulated substances", or other pollution under any applicable
federal, state or local law ordinances, rules or regulations now or hereafter in
effect.

                                   ARTICLE VII

                                   -----------

                               TENANT'S COVENANTS

         7.1 GENERAL.  Tenant shall not, nor shall Tenant at any time permit any
occupant  of the  Premises  to: (i) use or permit to be used any  portion of the
Premises for any unlawful purpose or use or permit the use of any portion of the
Premises as regular living quarters, sleeping apartments or lodging rooms or for
the conduct of any manufacturing  business, (ii) use the Premises for or conduct
therein activities,  the purpose for which is excluded from or inconsistent with
or not including within the purpose for which the Premises may be used according
to Section 1. I of this lease, or (iii) use, operate or maintain the Premises in
such manner that any of the rates for any insurance carried by Landlord,  or the
occupant of any premises within the Building, shall thereby be increased, unless
Tenant shall pay to Landlord or such occupant  within the Building,  as the case
may be, an amount equal to any such  increase in rates,  such payment to be made
promptly on demand as each  premium  which shall  include  such  increase  shall
become due and payable.

<PAGE>

         7.2 GLASS AND REFUSE. Tenant (i) will maintain the Premises in a clean,
orderly and sanitary condition and free of insects,  rodents,  vermin, and other
pests; and (ii) will not permit undue accumulation of garbage, trash, rubbish or
other refuse in the Premises and Landlord shall provide a suitable  location for
Tenant's outside trash receptacle which Tenant shall use and not allow refuse to
be left outside of the receptacle.

         7.3  RULES AND  REGULATIONS.  The  rules  and  regulations  as shown on
Exhibit  "D" are hereby  made a part of this  Lease and Tenant  agrees to comply
with  them.  Tenant's  failure  to  observe  the  rules  and  regulations  shall
constitute  a breach  of this  Lease.  Landlord  reserves  the right to amend or
supplement  the  rules and  regulations.  Notice  of such  additional  rules and
regulations,  if any,  shall be given to Tenant and Tenant agrees to comply with
the rules and regulations, and amendments thereto, provided the same shall apply
uniformly to all tenants of the Building.

                                        9

                                  ARTICLE VIII

                                  ------------

                       MAINTENANCE AND REPAIR OF PREMISES,
                   ALTERATIONS AND LANDLORD'S RIGHT OF ACCESS

         8.1  MAINTENANCE  FOR TENANT.  Landlord  shall keep, at the  Landlord's
expense,  the  foundation,  the roof and the exterior and interior  load bearing
walls and supports of the Premises  (except  plate glass doors,  door  closures,
door  frames,  store  fronts,  windows  and window  frames  located in  exterior
building walls) in good repair.  In the event that the Premises should become in
need of repairs  required to be made by Landlord  hereunder,  Tenant  shall give
immediate  written  notice  thereof  to  Landlord,  and  Landlord  shall  not be
responsible  in any way for failure to make any such repairs  until a reasonable
time shall have elapsed after the giving of such written notice.

         8.2 MAINTENANCE BY TENANT.  Tenant shall, at its sole expense, keep the
Premises  in a safe,  sightly,  and  serviceable  condition  and  free  from any
infestation  by insects,  rodents,  or other pests,  and except as  specifically
otherwise provided,  make all needed maintenance  including maintaining standard
service contracts for (i) the heating,  ventilating and air conditioning systems
serving the  Premises:  (ii) the  exterior  and  interior  portion of all doors,
windows,  window frames,  plate glass, door closures and door frames;  (iii) all
plumbing and sewage  facilities  within the Premises,  including free flow up to
the connection to the main sewer line;  (iv) all sprinkler  systems  serving the
Premises; (vii) all interior walls, floors, and ceilings; (viii) any of Tenant's
Work and repairs related to Tenants  alterations;  and (x) all necessary repairs
and replacements of Tenant's trade fixtures  required for the proper conduct and
operation of Tenant's business.  If at any time and from time to time during the
Term,  and any extensions  and renewals  thereof,  Tenant shall fail to make any
maintenance, repairs, or replacements in and to the Premises as required in this
lease,  Landlord  shall have the  right,  but not the  obligation,  to enter the
Premises  and to make such  maintenance,  repairs  and  replacements  for and on
behalf  of  Tenant  and all sums  expended  by  Landlord  for such  maintenance,
repairs,  and  replacements  shall be deemed to be additional rent hereunder and
shall be payable to Landlord  upon  demand.  At the  termination  of this lease,
Tenant shall surrender the Premises in good condition,  reasonable wear and tear
and loss by fire or other casualty alone excepted.

         8.3 NO ALTERATIONS.  Tenant shall not make any alterations,  additions,
or  replacements  to the Premises  without  prior  written  consent of Landlord,
except for Tenant's Work and the  installation of unattached  moveable  fixtures
which may be installed  without  drilling,  cutting,  or otherwise  defacing the
Premises.  All  alterations,  additions,  and  improvements  made  in and to the
Premises  and all floor  covering  that is cemented or  adhesively  fixed to the
floor and all fixtures  (other than trade  fixtures)  which are installed in the
Premises shall remain in and be  surrendered  with the Premises and shall become
the property of Landlord at the expiration of this lease. So long as Tenant is

<PAGE>

not in  default  hereunder,  Tenant  shall  have the right to  remove  its trade
fixtures  from the  Premises,  provided that Tenant shall repair and restore any
damage to the Premises, caused or occasioned by such removal.

                                       10

         8.4 WORKMANLIKE  WORK. All Tenant's Work and all repairs,  alterations,
additions and improvements done by Tenant within the Premises shall be performed
in  a  good  and  workmanlike   manner,  in  compliance  with  all  governmental
requirements,  and at such times and in the such  manner as will cause a minimum
of interference with other  construction in progress and with the transaction of
business in the Building.  Whenever Tenant proposes to do any construction  work
within  the  Premises,   Tenant  shall  first  furnish  to  Landlord  plans  and
specifications  covering  such work in such  detail as Landlord  may  reasonably
request.  Such plans and  specifications  shall comply with such requirements as
Landlord may from time to time prescribe for  construction  within the Building.
In no event shall any construction work be commenced within the Premises without
Landlord's written approval of such plans and specifications.

         8.5 RIGHT OF ENTRY. Landlord shall have the right, but not the duty, to
enter upon the Premises, at any time for emergencies and otherwise with at least
one business day advance  notice for the purpose of  inspecting  the same, or of
making repairs to the Premises, or of making repairs,  alterations, or additions
to adjacent  property,  or of showing the Premises to lenders or to  prospective
purchasers or tenants.

         8.6 NO LIENS.  Tenant  shall not  suffer or permit  any  materialmen's,
mechanics',  artisans' or other liens to be filed or placed or exist against the
land or  building of which the  Premises  are a part,  or  Tenant's  interest in
Premises by reason of work,  services,  or materials supplied or claimed to have
been  supplied  to Tenant or anyone  holding the  Premises  or any part  thereof
through or under the Tenant, and nothing contained in this lease shall be deemed
or  construed  in any way as  constituting  the consent or request of  Landlord,
expressed or implied, to any contractor,  subcontractor,  laborer or materialman
for the  performance  of any labor or the  furnishing  of any  materials for any
improvements,  alterations or repairs of or to the Premises or any part thereof,
nor as giving Tenant any right, power or authority to contract for or permit the
rendering of any services or the  furnishing  of any  materials  that would give
rise to the  filing of a  materialmen's  mechanics'  or other lien  against  the
Premises. If any such lien should, at any time, be filed, Tenant shall cause the
same to be  discharged  of record  within  fifteen  (15) days  after the date of
filing the same. If Tenant shall fall to discharge such lien within such period,
then,  in addition to any other right or remedy of Landlord,  Landlord  may, but
shall not be obligated to discharge the same either by paying the amount claimed
to be due or by procuring the discharge of such lien by a deposit in court or by
posting a bond. Any amount paid by Landlord for any of the aforesaid purposes or
for  the  satisfaction  of any  other  lien  not  caused  by  Landlord,  and all
reasonable expenses of Landlord in defending any such action or in procuring the
discharge of such lien,  shall be deemed  additional rent hereunder and shall be
repaid by Tenant to Landlord on demand.

         This Lease shall serve as notice to all potential  construction lienors
that neither  Landlord nor the Premises  shall be liable or subject to liens for
any work performed or materials  supplied at Tenant's  request or at the request
of anyone  claiming  interest  through  Tenant.  Landlord  reserves the right to
record a copy of this Lease or a memorandum  hereof in the public records of the
County  where the  Premises  are  located,  or to post a notice on the  Premises
containing this provision,  for the purpose of alerting  potential  claimants of
construction liens that neither

                                       11

Landlord nor the Premises are obligated for such liens, and Tenant shall execute
any document requested by Landlord in order to make record of such.

         8.7 INTERRUPTION OF BUSINESS. Landlord shall not be liable to Tenant
for any interruption of Tenant's business or inconvenience caused Tenant or

<PAGE>

Tenant's assigns,  sublessees,  clients, invitees, employees or licensees in the
Premises on account of  Landlord's  performance  of any repair,  maintenance  or
replacement  in the  Premises or any other work therein  pursuant to  Landlord's
rights or obligations  under this lease so long as such work is being  conducted
by  Landlord  in  accordance  with  the term of this  lease  and  without  gross
negligence or gross disregard for Tenant's business operations.

                                   ARTICLE IX

                                   ----------

                           SIGNS, DISPLAYS, DIRECTORY

         9.1 SIGNS/DISPLAYS. Tenant shall not, without the prior written consent
of  Landlord,  (i)  paint,  decorate  or make any  changes  to the  front of the
Premises;  (ii) install any exterior  lighting,  awning or  protrusions,  or any
exterior  signs,  advertising  matter,  decoration or painting;  (iii) affix any
window or door lettering, sign decoration or advertising matter to any window or
door  glass;  or (iv) erect or  install  any  signs,  window or door  lettering,
placards,  decorations or advertising media of any type which can be viewed from
the exterior of the Premises,  excepting  only  dignified  displays of customary
type in store windows.  Use of the roof of the Premises is reserved to Landlord,
and Landlord may install upon the roof equipment,  signs, antenna, displays, and
other objects and may construct additional stories above the Premises,  provided
any such use does not  unreasonably  interfere  with  Tenant's  occupancy of the
Premises.

         9.2 SIGN/DIRECTORY. Tenant shall have the use of 1/3 of any approved
signage. The Landlord may impose reasonable rules for the use of the signage.

                                    ARTICLE X

                                    ---------

                                    UTILITIES

         10.1  SUPPLY.  Landlord  agrees  to cause to be  provided  such  mains,
conduits and other facilities necessary to supply electricity,  water, sewer and
telephone  to the  Premises,  in  accordance  with and  subject  to any  special
provisions  contained  in Exhibit "C" and shall  provide  Tenant  with  separate
meters for utilities serving the Premises.

         10.2 CHARGES.  Tenant shall  promptly pay all charges for  electricity,
water,  sewer and telephone (where  applicable)  furnished to the Premises,  and
Landlord  may, if it so elects,  furnish one or more of such services to Tenant,
and, in such event,  Tenant  shall  purchase  such  services as are  tendered by
Landlord and shall pay for such services at the rates  established  therefore by
Landlord,  provided  that such rates  shall not exceed the rates  which would be
charged for the same  service if  furnished  directly by the  applicable  public
utility then furnishing  such service.  In the event that at any time during the
Term, or any extensions and renewals thereof,  Tenant shall fail to promptly pay
any of the foregoing charges, Landlord shall have the right, but not the

                                       12

obligation,  to pay such  charge or charges for and on behalf of Tenant and such
amounts so paid shall be deemed to be  additional  rent  hereunder  and shall be
payable by Tenant to Landlord upon demand.

         10.3  INTERRUPTION.  Landlord  shall  not be liable in the event of any
interruption in the supply of any utilities including,  without limitation,  any
heating  and  air-conditioning  (if  provided).  Tenant  agrees that it will not
install any equipment  which will exceed or overload the capacity of any utility
facilities  serving the Premises and that if any  equipment  installed by Tenant
shall  require  additional  utility  facilities,  the same shall be installed at
Tenant's expense in accordance with plans and  specifications  to be approved in
writing by Landlord.

                                   ARTICLE XI

<PAGE>

                                   ----------

                           INDEMNITY AND NON-LIABILITY

         11.1  INDEMNIFICATION.  Tenant does hereby agree to indemnify  and save
Landlord  harmless  from and against any and all  liability for any injury to or
death of any person or persons or any damage to  property in any way arising out
of or connected with the condition other than latent  defects,  use or occupancy
of the  Premises,  or in any way arising out of the  activities in the Premises,
Common Areas or other  portions of the Building,  of the Tenant,  its assigns or
sublessees  or of the  respective  agents,  employees,  licensees or invitees of
Tenant, its assigns,  or sublessees and from all costs expenses and liabilities,
including,  but not limited  to,  court costs and  reasonable  attorneys'  fees,
incurred by Landlord  in  connection  therewith,  excepting  however,  liability
caused by Landlord's gross negligence.

         11.2 NON-LIABILITY. Tenant covenants and agrees that Landlord shall not
be liable to Tenant  for any  injury to or death of any person or persons or for
damage to any property of Tenant, or any person claiming through Tenant, arising
out of any accident or  occurrence  on the Premises or any other  portion of the
Building,  including,  without limiting the generality of the foregoing, injury,
death or  damage  caused  by the  Premises  or other  portions  of the  Building
becoming  out of  repair or caused by any  defect in or  failure  of  equipment,
pipes,  or wiring,  or caused by broken  glass,  or caused by the  backing up of
drains, or caused by gas, water, steam, electricity, or oil leaking, escaping or
flowing into the Premises,  or caused by fire or smoke, or caused by the acts or
omissions of other tenants of the Building.

         11.3  DISCLAIMER.  Except  for the gross  negligence  of the  Landlord,
Landlord  shall not be  responsible or liable at any time for any loss or damage
to Tenant's  merchandise,  equipment,  fixtures or other personal property or to
Tenant's  business;  and  Landlord  shall not be  responsible  or liable for any
defect, latent or otherwise, in the Building or any of the equipment, machinery,
utilities, appliances or apparatus therein.

                                       13

                                   ARTICLE XII

                                   -----------

                                    INSURANCE

         12.1 PUBLIC  LIABILITY  INSURANCE.  Tenant shall,  at its sole cost and
expense,  procure  and  maintain  throughout  The Term of this lease a policy or
policies  of  insurance,   insuring  Tenant,  Landlord  and  any  other  persons
designated by Landlord against any and all liability for injury to or death of a
person or persons and for damage to property occasioned by or arising out of the
condition  of  the  Premises,  the  use or  occupancy  of  the  Premises  or any
construction work being done on the Premises by Tenant, or if applicable, boiler
explosion.  The  limits of such  policy  shall be in an amount not less than the
Liability  Insurance  Limits  as  specified  in 1.1 and shall be  written  by an
insurance  company  or  companies  reasonably  satisfactory  to  Landlord.  Such
policies  shall be  non-cancelable  except after ten (10) days written notice to
Landlord and designees of Landlord.  Such policies or duly executed certificates
of insurance  with respect  thereto shall be delivered to Landlord  prior to the
Rental  Commencement Date and renewals thereof as required shall be delivered to
Landlord at least  thirty (30) days prior to the  expiration  of the  respective
policy terms. The policy limits may be adjusted from time to time by Landlord if
reasonable  men  would  agree  that the  limits  are too low for  good  business
judgment.

                                  ARTICLE XIII

                                  ------------

                               DAMAGE BY CASUALTY

<PAGE>

         13.1 DAMAGE.  Tenant shall give immediate written notice to Landlord of
any damage to the  Premises  caused by fire or other  casualty,  and if Landlord
does not elect to terminate this lease as hereinafter  provided,  Landlord shall
proceed with reasonable  diligence and at its sole expense to rebuild and repair
the Premises. Notwithstanding the foregoing, in the event that (i) the insurance
proceeds  payable  in  connection  with such  damage  and  destruction  shall be
insufficient to make such  restoration,  (ii) the Building in which the Premises
are located shall be destroyed or substantially  damaged by casualty not covered
by standard fire or extended  coverage  insurance,  (iii) said building shall be
destroyed or rendered unrentable by any casualty to the extent of at least fifty
percent (50%) of the Gross Rentable Area of said  building,  (iv) Landlord shall
not have actual and unconditional  receipt of the insurance  proceeds payable in
connection  with such damage and  destruction,  (v) the holder of any  mortgage,
which  encumbers   Landlord's  interest  hereunder  or  in  the  Premises  shall
unrentable  by any casualty to the extent of at least fifty percent (50%) of the
Gross  Rentable Area of said  building,  (iv) Landlord shall not have actual and
unconditional  receipt of the insurance proceeds payable in connection with such
damage  and  destruction,  (v)  the  holder  of any  mortgage,  which  encumbers
Landlord's  interest  hereunder  or in the  Premises  shall  require  that  such
proceeds shall be applied against any indebtedness  owed to such holder, or (vi)
there shall be less than two (2) years  remaining in the Term,  or any extension
or renewal  thereof,  then, in any of such events,  Landlord may elect either to
terminate this lease or to proceed to rebuild and repair the Premises.  Landlord
shall give written  notice to Tenant of such  election  within  ninety (90) days
after the occurrence of such casualty.

                                       14

         13.2  RESTORATION.  Landlord's  obligation  to  rebuild  and repair the
Premises  under this  Article  XIII  shall in any event be limited to  restoring
Landlord's Work to  substantially  the condition in which the same existed prior
to the casualty,  and Tenant agrees that promptly  after the  completion of such
work by Landlord,  Tenant will proceed with reasonable diligence and at its sole
cost and expense to restore  Tenant's  Work to  substantially  the  condition in
which the same existed prior to the casualty.

         13.3 RENT.  Tenant agrees that during any period of  reconstruction  or
repair of the Premises,  it will  continue the operation of its business  within
the  Premises  to the extent  practicable.  Tenant  shall  maintain a  "business
interruption"  insurance  policy,  naming  Landlord as an additional  insured to
assure  continuation of the payment of the Minimum  Guaranteed Rental. A copy of
the policy shall be provided to Landlord.

         13.4  POLICIES.  Tenant  agrees at all times at its expense to keep its
equipment,  fixtures, Tenant's Work (excluding any portion of said work deemed a
fixture  properly  covered by the building hazard policy) and its other property
situated within the Premises  insured against fire, with extended  coverage,  to
the extent of at least eighty (80%) percent of the full insurable  value thereof
Such  insurance  shall be carried  with  companies  reasonably  satisfactory  to
Landlord.  Such  insurance  shall be  non-cancelable  except  for ten (10)  days
written  notice to Landlord.  Such  policies or duly  executed  certificates  of
insurance  with respect  thereto  shall be  delivered  to Landlord  prior to the
Rental  Commencement Date and renewals thereof as required shall be delivered to
Landlord at least  thirty (30) days prior to the  expiration  of the  respective
policy terms. The proceeds of such insurance shall be for use by Tenant,  except
with the consent of  Landlord,  for the repair or  replacement  of  merchandise,
fixtures,  Tenant's  Work,  or other  property  which was  situated  within  the
Premises.

         13.5 WAIVER OF SUBROGATION.  All fire and extended  coverage  insurance
carried by Landlord or Tenant  covering  losses arising out of destruction of or
damage  to the  Premises  or  its  contents  shall,  to  the  extent  reasonably
obtainable, provide for waiver of subrogation against Landlord, Tenant and other
tenants in the Building, on the part of the insurance carrier. Evidence of the

<PAGE>

existence of such waiver will be furnished by either party to the other party on
request.

         13.6 RIGHT TO TERMINATE.  In the event that Fifty (50%) percent or more
of the Gross Rentable Area of the Building  shall be destroyed or  substantially
damaged by any casualty,  notwithstanding that the Premises may be unaffected by
such  casualty,  either  Landlord or Tenant may  terminate  this lease by giving
thirty (30) days prior  written  notice of election to do so, which notice shall
be  given,  if at all,  within  ninety  (90)  days  following  the  date of said
occurrence. Rent shall be adjusted as of the date of such termination.

                                       15

                                   ARTICLE XIV

                                   -----------

                                 EMINENT DOMAIN

         14.1  RIGHT TO  CANCEL.  If more  than ten (10%)  percent  of the Gross
Rentable Area of the Premises is taken for any public or quasi-public  use under
any governmental law, ordinance,  or regulation,  or by right of eminent domain,
or by private purchase under threat thereof, this lease shall terminate upon the
election of either party  effective on the date  possession  of a portion of the
Premises is taken by the condemning authority.

         14.2  RENT  ADJUSTMENT.  If less  than ten  percent  (10%) of the Gross
Rentable Area of the Premises is taken for any public or quasi-public  use under
any governmental law, ordinance or regulation, or by right of eminent domain, or
by private purchase under threat thereof, this lease shall not terminate,  or if
more than ten percent  (10%) of the Gross  Rentable  Area of the  Premises is so
taken and this lease is not terminated in accordance  with Section 14.1, then in
either of such events the Minimum  Guaranteed Rental (but not percentage rental)
payable  hereunder during the unexpired  portion of the Term shall be reduced by
the  percentage  which the area taken bears to the area of the Premises prior to
the date  possession of such portion of the Premises is taken by the  condemning
authority.

         14.3  NOTICE.   Any  election  to   terminate   this  lease   following
condemnation  shall be evidenced by written notice of  termination  delivered to
the other party  within  thirty (30) days after the date by which both  Landlord
and Tenant are  notified  of such  taking or such sale,  and,  in the event that
neither  Landlord nor Tenant shall so exercise such  election to terminate  this
lease, then this lease shall continue in full force and effect.

         14.4  RESTORATION.  If  this  lease  is not  terminated  following  any
condemnation,  Landlord shall make all necessary  repairs or alterations  within
the scope of  Landlord's  Work  necessary to make the Premises an  architectural
whole,  and  Tenant  agrees  that  promptly  after  completion  of such  work by
Landlord, Tenant will proceed with reasonable diligence and at its sole cost and
expense  to make all  necessary  repairs  or  alterations  within  the  scope of
Tenant's Work necessary to make the Premises an architectural whole.

         14.5  COMPENSATION.  All  compensation  awarded  for any taking (or the
proceeds of private sale under threat thereof),  whether for the whole or a part
of the  Premises,  shall be the  property  of  Landlord,  whether  such award is
compensation for damages to Landlord's or Tenant's interest in the Premises, and
Tenant  hereby  assigns  all of its  interest  in any such  award  to  Landlord;
provided,  however,  Landlord shall have no interest in any award made to Tenant
for loss of business or for the taking of Tenant's  fixtures  personal  property
within the Premises if a separate award for such items if made to Tenant.

                                       16

                                   ARTICLE XV

                                   ----------

<PAGE>

                            ASSIGNMENT AND SUBLETTING

         15.1 ASSIGNMENT.  This lease (and all options) may be assigned,  sublet
or  transferred  by  Tenant,  provided  (a)  Landlord  prior to any  assignments
consents thereto in writing which consent may not be unreasonably  withheld, (b)
Tenant is not in default of any term of this Lease (c) the sublessee or assignee
provides  Landlord  with  such  financial  information  as  Landlord  reasonably
requires  and agrees in writing to be bound by the terms of this Lease,  and (d)
the Base  Rent is  increased,  not  decreased,  to an  amount  equal to the then
current  market rental rate (as  determined by and MAI appraisal  prepared by an
appraiser selected by a mutually agreeable third party).

         15.2  LANDLORD'S  TRANSFER.  The term  "Landlord" as used in this lease
means only the owner or entity from time to time owning the building  containing
the Premises,  so that in the event of any sale or sales  thereof,  the Landlord
who is a grantor  in any such  sale  shall be and  hereby  is,  without  further
agreement,  entirely  freed and  relieved  of all the  obligations  of  Landlord
hereunder.  Any  such  sale or  sales  of the  Premises,  unless  pursuant  to a
foreclosure sale or deed in lieu of such  foreclosure,  shall be subject to this
lease and it shall be deemed and construed  without  further  agreement that the
purchaser  at any such  sale has  assumed  and  agreed  to carry out any and all
obligations of Landlord under this lease so long as such purchaser  shall be the
owner of the building containing the Premises.

         15.3 NO ENCUMBRANCE.  Tenant shall not pledge or otherwise encumber its
interest under this lease. Tenant has only a usufruct, not subject to levy, sale
or  other  transfer,  whether  voluntary  or by  operation  of  law,  except  in
accordance with this Article XIV.

                                   ARTICLE XVI

                                   -----------

                                      TAXES

         16.1 GENERAL. Tenant shall be liable for and shall pay all taxes levied
against personal property,  fixtures, and Tenant's Work in the Premises; if such
taxes for which  Tenant is liable  are levied  against  Landlord  or  Landlord's
property  and if  Landlord  elects to pay the same or if the  assessed  value of
Landlord's  property is  increased  by  inclusion of any such items and Landlord
elects to pay the taxes  based on such  increase,  Tenant  shall pay to Landlord
upon demand that part of such taxes for which tenant is liable hereunder.

         16.2 REAL ESTATE TAXES.  Tenant agrees to pay as additional  rent,  its
share of the general real estate taxes,  assessments,  and governmental  charges
levied  against the Building for each  calendar year  beginning  with the Rental
Commencement  Date and  during  the Lease Term and any  renewals  or  extensions
thereof Said taxes, assessments, and governmental charges shall be appropriately
prorated  during  the first and last  years of the lease  term if such years are
less than full  calendar  years.  The  proportionate  share to be paid by Tenant
shall be the same percentage used to determine Tenant's share of the maintenance
expenses  provided  for in  paragraph  1.1(q).  Landlord  may at its option make
monthly or other periodic charges based upon

                                       17

the estimated  annual taxes,  payable in advance but subject to adjustment after
receipt of the tax statement Landlord;  adjustments shall be paid within fifteen
(15) days of presentation of the tax statement.

         16.3 RENT TAX.  Tenant agrees to pay as additional rent any rent or use
tax imposed on rent payments or imposed upon  Landlord  based upon rent payments
by  Tenant,  however,  Tenant  shall not be  required  to pay any  income tax of
Landlord.

                                  ARTICLE XVII

                                  ------------

<PAGE>

                              DEFAULTS AND REMEDIES

         17.1 DEFAULT BY LANDLORD.  If Landlord  defaults in the  performance of
any term,  covenant or condition required to be performed by Landlord under this
Lease,  Landlord  shall have  thirty (30) day  period,  Landlord  shall have all
reasonable and necessary time to complete such cure, as long as Landlord is upon
the occurrence of nay default set forth in this Lease and subsequent  failure by
Landlord to cure or commence actions to cure as provided above. Tenant shall, as
Tenant's sole remedy,  have the right to maintain an action against Landlord for
specific performance or injunctive relief.

         17.2  INJUNCTION.  If Tenant  fails to keep or perform or violates  any
covenant or provision of this lease (except  payment of any  installment of rent
or other  charge  or money  obligation  herein  required  to be paid by  Tenant)
Landlord may without  notice and in addition to any other remedy  enjoin  Tenant
from any such failure or violation hereunder.

         17.3 DEFAULT BY TENANT.  If,  except as otherwise  provided in Sections
9.2,  9.6 and 11.2  hereof,  Tenant fails to perform or violates any covenant or
provision of this Lease (except the payment of any  installment of rent or other
charge  or money  obligation  herein  required  to be paid by  Tenant)  and such
failure  or  violation  continues  for a period of ten (10) days  after  written
notice by Landlord,  or in case of a failure or violation  which cannot with due
diligence  be cured  within a period of ten (10) days,  if Tenant  fails to cure
such failure or violation promptly after the service of such notice and with all
due  diligence,  then  Landlord  may in addition to any other  remedies  cure or
prosecute the curing of such failure or violation at reasonable  expense,  which
expense shall be deemed to be additional rental and shall be paid to Landlord by
Tenant on demand.  Tenant agrees that neither  Landlord nor any person acting on
Landlord's  behalf  shall be liable  for any loss or damage  suffered  by Tenant
resulting from the exercise of the rights granted under this section.

         17.4  INTEREST.  Any  installment  of rent or any other charge or money
obligation  herein  required  to be paid by Tenant  which is not paid within ten
(10) days of when due shall bear  interest at the maximum  rate  allowed by law,
from the due date until paid and the Landlord may treat any such charge or money
obligation as additional rent hereunder.

         17.5 ACTS OF DEFAULT. The happening of any one or more of the following
shall be deemed to be events of default under this lease:

                                       18

                  (a)      The making by Tenant of an assignment for the benefit
                           of its creditors.

                  (b)      The levying of a writ of execution or  attachment  on
                           or against the property of Tenant within the Premises
                           or against Tenant's  leasehold  interest and the same
                           not being  released or discharged  within thirty (30)
                           days thereafter;

                  (c)      The institution of proceedings in a court of
                           competent jurisdiction for the reorganization,
                           liquidation, or voluntary or involuntary dissolution
                           of Tenant, or for its adjudication as a bankrupt or
                           insolvent, or for the appointment of a receiver of
                           the property of Tenant, and/or for the appointment of
                           a receiver of the property of Tenant, and said
                           proceedings not being dismissed, and any receiver,
                           trustee or liquidator appointed therein not being
                           discharged within thirty (30) days after the
                           institution of such proceedings.

                  (d)      The doing or permitting of any act by Tenant which
                           creates a lien or claim therefore against the land or

<PAGE>

                           building  of which  the  Premises  are a part and the
                           same not being released or otherwise  provided for by
                           indemnification   satisfactory   to  Landlord  within
                           thirty (30) days thereafter.

                  (e)      Failure of Tenant to pay any installment of rent or
                           other charge or money obligation herein required to
                           be paid by Tenant as and when such payment is due and
                           payable; notwithstanding the foregoing, Landlord
                           agrees to allow Tenant ten (10) days from the date of
                           receipt of written notice of any failure to pay
                           before the Landlord will assert a default to
                           accommodate justified oversights of the Tenant, but
                           the Landlord reserves the right, and shall be
                           entitled to find the Tenant in default if the Tenant
                           has unreasonably and habitually compels the Landlord
                           to enforce timely payment of the rent by giving a
                           written notice.

                  (f)      Failure of Tenant to comply with any covenant or
                           provision of this lease (except payment of any
                           installment of rent or other charge or money
                           obligation herein required to be paid by Tenant)
                           within fifteen (15) days after written notice of such
                           failure to comply is given by Landlord, or if it is
                           not feasible to cure such failure within such period,
                           to begin performance of such covenant within such
                           period and to diligently pursue performance to
                           completion in a reasonable time thereafter.

                                       19

         17.6 LANDLORD'S REMEDIES. Upon the occurrence of any of such events of
default, Landlord shall have the option to pursue any one or more of the
following remedies without any notice or demand whatsoever;

         (a)      Terminate this Lease, in which event Tenant shall  immediately
                  surrender  the Premises to  Landlord.  Landlord  may,  without
                  prejudice to any other  remedy  which it may have,  enter upon
                  and take possession of the Premises and expel or remove Tenant
                  and any other person who may be occupying  the Premises or any
                  part thereof, by force, if necessary, without being liable for
                  prosecution or any claim of damages therefore.

         (b)      Not terminate this lease but rather enter upon and take
                  possession of the Premises and, if Landlord so elects, make
                  such alterations and repairs as may be necessary to relet the
                  Premises, and relet the Premises or any part thereof, as the
                  agent of Tenant, at such rent and for such term and subject to
                  such terms and conditions as Landlord may deem advisable and
                  receive the rent therefore. Upon each such reletting all
                  rentals received by the Landlord from such relenting shall be
                  applied, first, to the payment of any indebtedness other than
                  rent due hereunder from Tenant to Landlord; second, to the
                  payment of any loss and expenses of such relenting, including
                  brokerage fees and attorneys' fees and costs of such
                  alterations and repairs; third, to the payment of rent due and
                  unpaid hereunder; and the residue, if any, shall be held by
                  Landlord and applied in payment of future rent as the same may
                  become due and payable hereunder, and Tenant agrees to pay to
                  Landlord on demand any deficiency that may arise by reason of
                  such relenting. Notwithstanding any such relenting without
                  termination, Landlord may at any time thereafter elect to
                  terminate this lease for such previous breach.

         (c)      Should Landlord at any time terminate this lease for any
                  breach, in addition to any other remedies it may have, it may

<PAGE>

                  recover from Tenant all damages it may incur by reason of such
                  breach,   including  the  cost  of  recovering   the  Premises
                  reasonable  attorneys' fees, and the worth at the time of such
                  termination  of the excess,  if any, of the amount of rent and
                  charges  equivalent  to rent,  reserved  in this lease for the
                  remainder of the Term over the then reasonable rental value of
                  the Premises  for the  remaining  portion of the Term,  all of
                  which amounts shall be immediately due and payable from Tenant
                  to Landlord. In determining the rent which would be payable by
                  Tenant hereunder,  subsequent to default,  the annual rent for
                  each year of the unexpired  term shall be equal to the average
                  Minimum  Guaranteed  Rental and percentage rent paid by Tenant
                  from the  Rental  Commencement  Date to the time of default or
                  during the preceding two (2) calendar years,  whichever period
                  is shorter.

         (d)      Pursuit of any of the  foregoing  remedies  shall not preclude
                  pursuit of any of the other  remedies  herein  provided or any
                  other  remedies  provided  by law,  nor shall  pursuit  of any
                  remedy  herein  provided  constitute a forfeiture or waiver of
                  any rent due to Landlord  hereunder or of any damages accruing
                  to Landlord by reason of

                                       20

                  the violation of any of the covenants  and  provisions  herein
                  contained.  Forbearance  by Landlord to enforce one or more of
                  the remedies  herein  provided  upon an event of default shall
                  not be  deemed  or  construe  to  constitute  a waiver of such
                  default.

         17.7 LEGAL FEES.  If,  because of any breach or default  hereunder,  it
shall  become  necessary  for the  Landlord  to employ an attorney to enforce or
defend any of the rights remedies  hereunder,  the Tenant agrees to pay any such
fees or costs incurred by the Landlord.

         17.8 DEPOSITS.  Landlord hereby acknowledges  receipt from tenant of an
Advance  Deposit,  which  shall be applied to rent due for April and May,  1997.
Landlord further acknowledges receipt from Tenant of the Security Deposit, which
shall be held by Landlord  without interest as security for this lease, it being
expressly  understood  that such deposit is not an advance  payment of rent or a
measure of Landlord's damages in case of default by Tenant.  Upon the occurrence
of any event of default  by Tenant,  Landlord  may,  from time to time,  without
prejudice  to any other  remedy  provided  herein,  or provided by law,  use the
Security  deposit to the extent  necessary  to make good any arrears of rent and
any other damage,  injury, expense or liability caused to Landlord by such event
of default. Following any such application of the Security Deposit, Tenant shall
pay to Landlord on demand the amount so applied in order to restore the Security
Deposit to its original amount. If Tenant is not then in default hereunder,  any
remaining  balance of the  Security  Deposit  shall be  returned  by Landlord to
Tenant upon termination of this lease.

                                  ARTICLE XVIII

                                  -------------

                                  SUBORDINATION

         18.1  SUBORDINATION.  This lease and all rights of Tenant hereunder are
and  shall  be  subject  and  subordinate  to the  lien of any  mortgage  now or
hereafter  encumbering the Premises or Landlord's  interest.  In confirmation of
such  subordination,  Tenant shall,  upon demand at any time or times,  execute,
seal and deliver to Landlord,  without  expense to Landlord,  all instruments in
recordable form that may be requested to evidence this subordination to the lien
of any such mortgage and each renewal, modification, consolidation, replacement,
and extension thereof. All said instruments shall be drafted and prepared by the
Landlord and delivered to the Tenant at Landlord's expense. If Tenant shall fail
to execute, seal and deliver any such instrument, Landlord in addition to any

<PAGE>

other  remedies  available to it in  consequence  thereof may execute,  seal and
deliver the same as the attorney in fact of Tenant and in Tenant's  name,  place
and stead,  and Tenant  hereby  irrevocably  makes,  constitutes,  and  appoints
Landlord, its successors and assigns, as such attorney in fact for that purpose.

         18.2 ATTORNMENT. If the holder of any mortgage, shall hereafter succeed
to the rights of  Landlord  under this  Lease,  whether  through  possession  or
foreclosure  action or  delivery  of a new  lease,  then,  at the option of such
holder, Tenant shall attorn to and recognize such successor as Tenant's landlord
under this lease and shah promptly  execute and deliver any instrument  that may
be necessary to evidence such attornment.

                                       21

         18.3 NONDISTURBANCE.  Upon attornment this lease shall continue in full
force and effect as a direct lease between such  successor  landlord and Tenant,
subject to all the terms, covenants, and conditions of this lease.

                                   ARTICLE XIX

                                   -----------

                                  MISCELLANEOUS

         19.1 NOTICES. Whenever any notice is required or permitted, such notice
shall be in writing,  deposited  in the United  States  Mail,  postage  prepaid,
certified mail, return receipt requested,  addressed to the address specified in
Section 1.1.

         19.2 NOTICES TO LENDER.  Tenant  agrees that upon the request of either
Landlord  or  the  holder  of  any  mortgage,  encumbering  Landlord's  interest
hereunder or in the  Premises,  Tenant  shall send to such holder  copies of all
notices  sent to  Landlord;  Tenant  agrees that it may not  exercise any of its
remedies on account of a default by Landlord  under this lease until such holder
shall have received  written notice from Tenant and a period of thirty (30) days
after  receipt of such  notice for curing such  default  shall  thereafter  have
elapsed.

         19.3 CAPTIONS. The captions and the contents used in this lease are for
convenience only and do not in any way limit or amplify the terms and provisions
hereof  Whenever the singular  number is used the same shall include the plural,
and words of any gender shall include each other gender.

         19.4  WAIVER.  Failure  of  Landlord  to  declare  an event of  default
immediately  upon its  occurrence,  or delay in taking any action in  connection
with an event of default,  shall not  constitute  a waiver of the  default,  but
Landlord  shall have the right to declare  the default at any time and take such
action as is lawful or authorized under this Lease.  Pursuit of any on e or more
of the remedies set forth in Article II above shall not preclude  pursuit of any
one or more of the any  remedy  hereunder  or at law  constitute  forfeiture  or
waiver of any rent or damages accruing to Landlord by reason of the violation of
any of the terms,  provisions or covenants of this Lease. Failure by Landlord to
enforce one or more of the remedies provided  hereunder or at law upon any event
of  default  shall not be  deemed or  construed  to  constitute  a waiver of the
default or of any other violation or breach or any of the terms,  provisions and
covenants  contained  in this Lease.  Landlord  may collect and receive rent due
from tenant  without  waiving or affecting  any rights or remedies that Landlord
may have at law or in  equity  or by  virtue  of this  Lease at the time of such
payment.  Institution of nay action to reenter the Leased  Premises shall not be
construed to be an election by Landlord to terminate this Lease.

         19.5 ACT OF GOD OR FORCE MAJEURE. An "Act of God" or "Force Majeure" is
defined for purposes of this Lease as strikes, lockouts,  sitdowns,  material or
labor restrictions by any governmental authority, unusual transportation delays,
riots,  floods,  washouts,   explosions,   earthquakes,   fire  storms,  weather
(including wet grounds or inclement weather which prevents constructions),  acts
of the public enemy, wars, insurrections, and/or any other cause not reasonable

<PAGE>

within the control of Landlord or which by the exercise of due diligence
Landlord is unable wholly or in part, to prevent or overcome. Landlord shall not
be required to perform any

                                       22

covenant or obligation in this Lease, or be liable in damages to Tenant, so long
as the performance or nonperformance of the covenant or obligation is delayed or
prevented by an "Act of God", "Force Majeure" or by Tenant.

         19.6 ENTIRE AGREEMENT. This lease contains the entire agreement between
the parties and no agreement, representation or inducement shall be effective to
change, modify or terminate this lease in whole or in part unless in writing and
signed by the parties.

         19.7 JURY TRIAL. The parties waive the right to a trial by jury in any
legal proceeding.

         19.8 ESTOPPEL INFORMATION. Tenant, after reasonable notice, shall
execute, acknowledge and deliver to Landlord a certificate evidencing whether or
not:

         (a) This lease is in full force and effect;

         (b) This lease has been amended in any way;

         (c) There are any existing defaults hereunder to the knowledge of
             Tenant and specifying the nature of such default, if any; and

         (d) The date to which rent,  including  percentage  rental, if any, has
             been paid. Each certificate  delivered pursuant to this Section may
             be relied  on by an  prospective  purchaser  or  transferee  of the
             Building or of Landlord's interest hereunder or by any mortgagee of
             the Building or of Landlord's interest hereunder or by any assignee
             of any such mortgagee.

         19.9 SUCCESSORS BOUND. The terms, provisions and covenants contained in
this lease  shall apply to,  inure to the  benefit  of, and be binding  upon the
parties hereto and their respective heirs,  assigns,  successors in interest and
legal  representatives  except  as  otherwise  provided;  however,  all  claims,
demands,  or causes of action which Tenant may have  against  Landlord  shall be
enforceable  solely against Landlord's right, title and interest in Building and
no other  property  of Landlord  shall be subject to any such  claim,  demand or
cause of action.

         19.10 TIME OF ESSENCE. Time is of the essence in this agreement.

         19.11  LAW.  The  laws  of  the  State  of  Florida  shall  govern  the
interpretation,  of this lease.  If any provision of this lease shall be held to
be invalid or unenforceable,  the validity and  enforce-ability of the remaining
provisions of this lease shall not be affected.

         19.12  SURRENDER  PREMISES.  Tenant shall, on or before the last day of
the Term hereof, or when sooner terminated,  peaceably and quietly surrender the
Premises to Landlord with all alterations, additions, improvements, fixtures and
equipment,  including air conditioning  equipment  (excluding trade fixtures and
other personal property of Tenant),  be in good order and repair,  ordinary wear
and tear  excepted.  All such property not removed shall be deemed  abandoned by
Tenant and conveyed to Landlord unless Landlord shall give notice to Tenant to

                                       23

remove all or any part  hereof,  in which  event  Tenant  shall  promptly at its
expense remove same, or Landlord may do so at Tenant's expense.

         19.13 VENUE. Venue for any litigation regarding this agreement shall

<PAGE>

lie in Orange County, Florida.

         19.14 NO PARTNERSHIP. Deleted.

         19.15 LANDLORD'S LIABILITY. (Deleted)

         19.16  MULTIPLE  TENANTS.  If this Lease is  executed  by more than one
person or entity as  "Tenant",  each such person or entity  shall be jointly and
severally liable hereunder. It is expressly understood that any one of the named
Tenants  shall be empowered  to execute any  modification,  amendment,  exhibit,
floor  plan,  or other  documents  herein  referred to and bind all of the named
Tenants thereto; and Landlord shall be entitled to rely on same to the extent as
if all of the named Tenants had executed same.

         19.17  LIMITATION OF WARRANTIES.  Landlord and Tenant  expressly  agree
that  there  are  and  shall  be  no  implied  Warranties  of   merchantability,
habitability,  suitability,  fitness for a particular purpose of or of any other
kind arising out of this Lease,  and there are no warranties which extend beyond
those expressly set forth in this Lease.  Without limiting the generality of the
foregoing, Tenant expressly acknowledges that Landlord has made no warranties or
representations  concerning  any  hazardous  substances  or other  environmental
matters  affecting  any part of the  Property,  and  Landlord  hereby  expressly
disclaims  and Tenant waives any express or implied  warranties  with respect to
any such matters.

         19.18  SPECIAL  STIPULATIONS  CONTROL.  To the extent  that the Special
Stipulations  set  forth  in  Exhibit  "F"  conflict  with  any of  the  printed
provisions of this lease, such Special Stipulations shall control.

         19.19 RADON GAS.  Notice to  Prospective  Purchaser/Tenant:  Radon is a
naturally  occurring  gas  that,  when  it  has  accumulated  in a  building  in
sufficient quantities, may present health risks to persons who are exposed to it
over time.  Levels of radon that exceed Federal and State  guidelines  have been
found in buildings in Florida.  Additional information regarding radon and radon
testing may be obtained  from your  county  public  health  unit.  (pursuant  to
Section 404.056(8), Florida Statutes.)

         19.20  SHORT  FORM OF  LEASE.  Simultaneously  with the  execution  and
delivery  hereof the parties have executed a Memorandum  if Lease  Agreement and
the LESSOR or the LESSEE may record such  Memorandum of Lease  Agreement in lieu
of recording this lease.

         19.21 BROKER. The parties represent to each other that no brokers are
affiliated with this transaction.

         19.22 CONDITION PRECEDENT. This lease shall not be binding unless it is
executed and delivered by and to both parties on or before

                                       24

         19.23  ACCEPTANCE  BY  FACSIMILE.  Either  party  may  demonstrate  its
acceptance  or  execution of this Lease by  facsimile  transmitted  by facsimile
showing the transmitting  parties'  signature  thereon.  Such a facsimile,  once
received  by the other  party,  shall  bind the  transmitting  party to the same
extent as would delivery of this Lease (or a counterpart) containing the parties
actual signature.

         IN WITNESS  WHEREOF,  the parties have caused this Lease to be executed
by their duly authorized officers the day and year first above written.

AS TO LANDLORD:

/s/ A. J. Stanton, Jr.                         /s/ Kyung Park
Print Name:  A. J. Stanton, Jr.                KYUNG PARK

/s/ Amanda R. Moody
Print Name:  Amanda  R. Moody

<PAGE>

                                               /s/ Bank Park

/s/ A. J. Stanton, Jr.                         BANG PARK
Print Name:  A. J. Stanton, Jr.

/s/ Amanda R. Moody
Print Name:  Amanda R. Moody

AS TO TENANT:
                                               MEGAMEDIA NETWORKS, INC.
/s/ A. J. Stanton, Jr.
Print Name:  A. J. Stanton, Jr.                By: /s/ William Mobley, President

/a/ Amanda R. Moody
Print Name:  Amanda R. Moody

                                       25

                                    EXHIBIT A

                                    ---------

                                  [Space Plan]

                                  ------------

                                       A-1

                                    EXHIBIT B

                                    ---------

                                  [FLOOR PLAN]

                                       B-1

                                    EXHIBIT E

                               GUARANTEE AGREEMENT

         THIS  AGREEMENT  was entered  into on 14th day of June,  1999,  between
Kyung Park and Bang Park,  individually  and as  Landlord  ("Landlord")  and the
individuals  signing hereto  ("Guarantors")  and secure performance of the lease
between Landlord and MEGAMEDIA NETWORKS, INC.("Lease").

                                    RECITALS

         a.       Guarantors desire to induce the Landlord to enter into the
                  Lease between the Landlord and the Tenant.

         b.       The Landlord is unwilling to enter into the Lease without the

<PAGE>

                  assurances afforded by the Guarantors set forth below.

         NOW,  THEREFORE,  in  consideration  of the Lease  being  entered  into
between the Landlord and Tenant,  which benefits the Guarantors  herein,  and in
further  consideration  of the sum of One  Dollar  ($1.00),  receipt of which is
acknowledged by the Guarantors, the Guarantors covenant and agree as follows:

         1. The Guarantors  hereby absolutely and  unconditionally  guarantee to
the Landlord the prompt,  punctual payment and performance,  when due, of all of
the Tenant's  obligations  to the Landlord under the terms and conditions of the
Lease between the Landlord and Tenant.  The  Guarantors  agree that all payments
and other obligations under this Guarantee will be made promptly on demand.

         2. The obligations  hereunder are joint and several, and independent of
the  obligations of the Tenant,  and a separate action or actions may be brought
or prosecuted  against one or more of the  Guarantors  whether action is brought
against  the  Tenant or  whether  the  Tenant  be  joined in any such  action or
actions-  and  Guarantors  waive  the  benefit  of any  statute  of  limitations
affecting their liability hereunder or the enforcement thereof.

         3. The Guarantors  authorize the Landlord  without  notice,  consent or
demand,  at any time, and from time to time, either before or after the maturity
thereof,  to extend the time for payment of any  obligation  of the  Tenant;  to
amend in any respect  whatsoever,  any provision of the Lease without  notice or
assent from the Guarantors.

         4. No delay on the part of the Landlord in exercising any right shall
operate as a waiver.

         5. In the event that the Tenant is now or is hereafter  indebted to any
of the Guarantors,  the Guarantors agree that said  indebtedness held by them is
hereby subordinated to the indebtedness of the Tenant to the landlord as long as
this Guarantee is in full force and effect.

                                       E-1

         6.  Guarantors  waive  any right to  require  Landlord  to (a)  proceed
against the Tenant, (b) proceed against or exhaust any security held or to which
Landlord  is  entitled,  or (c)  pursue  any other  remedy in  Landlord's  power
whatsoever.  Guarantors  waive any defense  arising by reason of any disability,
lack of  corporate  authority  or power,  or other  defense of the Tenant or any
other  Guarantor,  and shall remain liable  regardless of whether  Tenant or any
other  Guarantor is found not liable for any reason.  Until all the  obligations
have been  paid or  complied  with in U],  Guarantors  shall  not have  right of
subordination,  and each waives any right to enforce any remedy  which  Landlord
now has or may hereafter hold or to which the Landlord is entitled.

         7. This  Guarantee  Agreement she remain in full force and effect until
all of the terms and  conditions  of the Lease have been complied with and shall
be binding upon Guarantors,  and the respective  heirs,  legal  representatives,
successors and assigns of Guarantors and, along with all rights, title, benefits
and securities  existing and to exist  hereunder,  shall inure to the benefit of
and be available to Landlord, his successors and assigns.

         IN WITNESS WHEREOF, the undersigned Guarantors have set their hands and
seals.

                                                      /s/ William A. Mobley
                                                      WILLIAM A. MOBLEY

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00014-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00014-of-00352.parquet"}]]