Document:

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                                  EXHIBIT 10.2

                       AMENDMENT TO 1998 STOCK OPTION PLAN

Resolved, that the following text of the Creative Master International, Inc.
1998 Stock Option Plan is hereby restated to read in its entirety as follows:

Section 2 - Definitions (g) is hereby restated to read in its entirety as
follows:
(g)  "Company" means PacificNet.com, Inc. a Delaware corporation

Section 2 - Definitions (w) is hereby restated to read in its entirety as
follows:
(w)  "Plan" means this PacificNet.com, Inc. Stock Option Plan

Section 3 -Stock Subject to the Plan is hereby restated to read in its entirety
as follows:

Subject to the provisions of Section 11 of the Plan, the maximum aggregate
number of Shares which may be subject to option and sold under the Plan is
1,666,667 (after giving effect to the 1-for-3 reverse stock split approved in
July 2000). The Shares may be authorized but unissued, or reacquired Common
Stock, If an Option expires or becomes unexercisable without having been
exercised in full, or is surrendered pursuant to an Option Exchange Program, the
unpurchased Shares which were subject thereto shall become available for future
grant or sale under the Plan (unless the Plan has terminated). However, Shares
that have actually been issued under the Plan, upon exercise of an Option, shall
not be returned to the Plan and shall not become available for future
distribution under the Plan.<PAGE>

                                                                           LDA-2

                                    SUB-LEASE

                     NO. 3 LOCKHART ROAD, WANCHAI, HONG KONG

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CONTENTS

1.          Premises

2.          Tenant's obligations

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

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

3.          Landlord's obligations

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

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

            First Schedule
            Second Schedule
            Third Schedule
            Fourth Schedule

            Appendix I - Market Rent
            Appendix 11 - Management Fee
            Appendix III - Air-conditioning Fee

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THIS SUB-LEASE is made the 22nd day of September Two Thousand

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

WHEREAS :-

1.   By a lease dated 18th May, 1994 made between The Boys' and Girls' Clubs
     Association of Hong Kong (hereinafter referred to as "THE HEAD LANDLORD")
     as landlord on the one part and the Landlord as tenant on the other part
     registered in the Land Registry by Memorial No. 6016935 , all those
     portions of the Building (as hereinafter defined) more particularly
     described and set out in the Second Schedule hereto (hereinafter referred
     to as "THE LEASED PROPERTY") were demised by the Head Landlord to the
     Landlord for the term stated therein. Particulars of the said lease
     (hereinafter called "THE HEAD LEASE") are set forth in the Third Schedule
     hereto.

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

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

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

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

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WITNESSETH as follows :-

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

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

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

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

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

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

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

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

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

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

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                       the Tenant's liability under this sub-clause.

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

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

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

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

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

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

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

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

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                           Provided :

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                                       13
<PAGE>

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

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

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

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

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

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

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

                                       14
<PAGE>

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

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

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

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

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

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

                                       15
<PAGE>

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

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

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

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

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

                                       16
<PAGE>

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

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

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

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

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

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

                                       17
<PAGE>

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

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

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

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

                                       18
<PAGE>

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

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

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

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

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

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

                                       19
<PAGE>

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

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

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

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

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

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

                                       20
<PAGE>

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

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

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

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

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

                                       21
<PAGE>

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

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

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

                                       22
<PAGE>

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

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

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

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

                                       23
<PAGE>

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

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

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

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

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

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

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

                                       24
<PAGE>

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

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

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

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

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

                                       25
<PAGE>

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

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

                                       26
<PAGE>

                                 FIRST SCHEDULE

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

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

                                 SECOND SCHEDULE
                 THE LEASEED PROPERTY AND THE APPURTENANT RIGHTS

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

                                       27
<PAGE>

                                 THIRD SCHEDULE

THE HEAD LEASE

Date     :  18 May 1994.

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

            (6) COGENT SPRING LIMITED whose registered office is situate at
                Hsin Chong Center, 107-109 Wai Yip Street, Kwun Tong, Kowloon.
Demised
Property :  The Leased Property as referred to in the SECOND SCHEDULE hereto.

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

                                       28
<PAGE>

                                FOURTH SCHEDULE

PART I    -  The Premises

             ALL THAT 19/F of No.3 Lockhart Road ("the Building") as shown on
             the plan annexed hereto and thereon coloured pink (for
             identification purpose only).

Part II   -  Term

             2 years from 25 August 2000 to 24 August 2002 (both days
             inclusive). The Tenant shall have the right to terminate this
             Sub-Lease by giving three (3) months' prior written notice to the
             Landlord provided that such notice of termination shall not be
             served before 25 August 2001. Upon the expiration of such notice,
             this Sub-Lease and everything herein contained shall cease and be
             void but without prejudice to the rights and remedies of either
             party against the other in respect of any antecedent claim or
             breach of any of the agreements or stipulations herein contained.

Part III  -  Rent

             HK$82,872.00 per calendar month (exclusive of rates and management
             fee and air-conditioning fee and other outgoings).

Part IV   -  Management Fee

             The management fee that will be payable with effect from the
             commencement of the Term as a due proportion of the cost to the
             Landlord of providing the management services to the common areas
             and services of the Building will be HK$15,055.08 per calendar
             month. The management services comprise the items set out in the
             Appendix II.

Part V    -  Air-Conditioning Fee

             The air-conditioning fee that will be payable with effect from the
             commencement of the Term for air-conditioning supplied to the
             Premises during the operating hours as stipulated in Part VII of
             this Fourth Schedule will be HK$6,215.40 per calendar month. The
             air-conditioning fee is calculated in accordance with the
             provisions set out in Appendix III.

                                       29
<PAGE>

PART VI   -  DEPOSIT

Deposit      :HK$312,427.44
             (equivalent to three months' rental, management fee and air-
             conditioning fee)

PART V11  -  OPERATION HOURS OF AIR-CONDITIONING

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

PART VIII -  PLAN APPROVAL FEE

Plan Approval Fee    :NIL

PART IX   -  TEMPORARY SERVICE FEE

Temporary Service
Fee                  :NIL

PART X    -  INTEREST AND ADMINISTRATION COST

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

                                       30
<PAGE>

APPENDIX I - MARKET RENT

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

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

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

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

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

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

                                       31
<PAGE>

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

          but disregarding :-

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

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

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

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

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

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

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

                                       32
<PAGE>

APPENDIX II - MANAGEMENT SERVICES

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

    (a)   cleaning of the common areas;

    (b)   lighting of the common areas;

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

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

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

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

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

    (h)   garbage and waste disposal;

    (i)   rates relative to the common areas;

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

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

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

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

                                       33
<PAGE>

APPENDIX III - AIR-CONDITIONING SERVICES

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

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

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

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

    (c)   the remuneration to the manager;

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

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

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

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

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

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

                                       34
<PAGE>

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

                                       35
<PAGE>

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

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

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

RECEIVED on the day and year first       )

above written the sum of HONG KONG       )

DOLLARS Three Hundered Twelve Thousand   )
Four Hundred Twenty Seven and            ) HK$ 312,427.44
Cents Forty Four ONLY being the          )
                                         )
Deposit hereinbefore expressed to        )
                                         )
be payable by the Tenant to the Landlord )
(Hsin Chong Real Esate Agency            )
Limited's Receipt No.                    )
issued on
                                  refers )

                                       36
<PAGE>

19th Floor

Office
Plan

[GRAPHIC]

                                       37

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