Document:

EXHIBIT 10.2

                               PROMISSORY NOTE

$150,000                                                    As of July 8, 2000
                                                               Marysvale, Utah

     FOR VALUE RECEIVED, the undersigned, UNICO, INCORPORATION, a corporation
whose address is P. 0. Box 777, Magalia, California 95954 (hereinafter
"Maker"), promises to pay to the order of TECH-SYM CORPORATION, a Nevada
corporation whose address is 10500 Westoffice Drive, Suite 200, Houston, Texas
77042-5391 (hereinafter "Lender," or, together with each successive owner and
holder of this Note, hereinafter referred to as "Holder"), the principal sum
of One Hundred Fifty Thousand and No/100 Dollars ($150,000.00) payable in full
on or before April 20, 2001.

     At the option of Holder, the unpaid balance of this Note and all other
obligations of Maker to Holder, direct or indirect, absolute or contingent,
now existing or hereafter arising, may become immediately due and payable upon
the occurrence of any of the following events of default: (a) Maker shall fail
to pay any installment of principal and/or interest of this Note within seven
days of such payment becoming due in accordance with the terms hereof, whether
through acceleration or otherwise, (b) Maker shall be in default under any
other terms of this Note; (c) if Maker shall become bankrupt, or shall file
for bankruptcy, or shall make an assignment for the benefit of or a
composition with creditors, or shall be unable, or shall admit in writing its
inability, to pay its debts as they mature; (d) if bankruptcy, reorganization,
arrangement, insolvency or similar proceeding for relief of financially
distressed debtors shall be instituted against Maker, and shall not be
dismissed on appeal, within thirty (30) days of such institution; or (e) if
Maker shall petition for, or there shall be appointed for a substantial part
of the assets or properties of Maker, a trustee, receiver or liquidator, or if
Maker shall take any action for the purposes of effecting any of the foregoing
(all of the foregoing provisions of this paragraph being referred to herein as
"Default").

     Upon the occurrence of any Default, the entire amount of unpaid principal
shall bear interest at the default rate equal to twelve percent (12%) per
annum until cured.

     In the event this Note is placed in the hands of an attorney at law for
collection after maturity or upon Default, or in the event that proceedings at
law, in equity or bankruptcy, receivership, or other legal proceedings, are
instituted in connection herewith, or in the event this Note is placed in the
hands of an attorney at law to protect, defend or enforce the rights of the
Holder hereof, or any of the rights or agreements contained in this Note,
Maker hereby agrees to pay for the defense or enforcing of such rights,
including, without limitation, court costs and reasonable attorneys' fees, in
addition to all principal, interest and other amounts payable hereunder.

     The Maker and sureties, guarantors and endorsers, if any, of this Note,
jointly and severally, do hereby waive demand, presentment for payment,
diligence in collection, notice of nonpayment, and protest, and do each hereby
waive notice of and consent to any and all extensions and renewals of this
Note or any part thereof, or the release of any party liable for payment of
this obligation, from time to time, without notice.

     Upon payment in full of all amounts owing hereunder, this Note will be
marked "canceled" and sent to the escrow agent with a copy to Maker. So long
as any amounts are owing under this Note, and Maker is not in default
hereunder, Holder will, within thirty (30) days after receipt of a written
request from Maker, provide Maker with a written statement as to the amount
outstanding hereunder, and the application of all moneys received subsequent
to the written statement most recently furnished to Maker containing such
information.

     This Note is executed and delivered in the State of Utah and is intended
to be governed by and construed in accordance with the laws of the State of
Utah. All dollar figures used herein are expressed in U.S. dollars.

     IN WITNESS WHEREOF, Maker has executed this Note on and as of the Note
Date.

                              UNICO, INCORPORATED

                              By /s/ Ray C. Brown
                                 ___________________________

                              Name: Ray C. Brown

                              Title: President<PAGE>

                                                                 Exhibit 10.32

                           (Translation from Hebrew)
                                 Lease Agreement

              Entered into and signed in Jerusalem on June 13, 2000

Between: Har Hotzvim Properties Ltd.  (51-168405-2) of 27, Hamered St., Tel Aviv
         (hereinafter: the "Lessor")

And:     VYYO Ltd.  (51-086689-0)  of Kiriat  Hamada St.,  Building # 6,
         Har Hotzvim P.O.B. 45017, Jerusalem (hereinafter: the "Lessee")

Whereas  the  Lessor  owns the  rights to the land  known as parcel 110 in block
         30241 on Kiriat Hamada St., Har Hotzvim, Jerusalem; and

Whereas  there is an existing building on the said land, and other buildings
         are in the stages of planning, construction and development; and

Whereas  the Lessee is  interested  in leasing  two units from the  Lessor,
         located in  Building B on the land, as set forth herein; and

Whereas  the Lessor agrees to lease two units in Building B on the land to the
         Lessee, as set forth herein; and

Whereas  the parties have agreed upon the principles for the adjustment
         of the leased premises to the Lessee's  requirements,  and all
         other terms and conditions of the transaction have been agreed
         upon,

Therefore, it has been agreed, stipulated and declared as follows:

1.       General
         -------

1.1      The preamble to this agreement constitutes an integral part hereof.

1.2      Definitions
         -----------

         In this agreement, the following terms shall have the meaning set forth
         beside them:

1.2.1    "Land" - parcel 110 in block 30241 on Kiriat  Hamada St.,  Har Hotzvim,
         Jerusalem,  including anything  constructed  thereon and anything to be
<PAGE>

         constructed  and  developed  thereon.  The  boundaries  of the Land are
         marked on the drawing  attached to this  agreement  as Appendix A-1 and
         constituting an integral part hereof.

1.2.2    "Project" - the Ramot Meir project  located on the Land,  that includes
         and will  include  multi-functional  buildings,  parking  lots and open
         spaces.

         The  Project is due to include  three main  buildings  in addition to a
         high-rise  building  (Buildings  A, B, C and  D).  The  term  "Project"
         imports each of these buildings,  and all other buildings,  facilities,
         areas, yards, roads and anything else located on the Land.

         The Lessor intends to include within the Project catering  services, a
         post office and a bank.

         The construction of the Project shall be carried out in stages, at the
         Lessor's discretion.

1.2.3    "Building A" - an existing,  multi-story  building in the Project,  the
         boundaries of which are marked on the drawing attached as Appendix A-1.

         "Building B" - a building in the stages of planning  and  construction,
         the boundaries of which are marked on the drawing  attached as Appendix
         A-1, which will contain parking lot levels and multi-functional levels.

         "Building C" - a planned  building,  the boundaries of which are marked
         on the drawing attached as Appendix A-1, which will contain parking lot
         levels and multi-functional levels.

         "Building D" - a planned building,  designed as a high-rise, which will
         be constructed  above part of Building C, if the  construction  thereof
         will be approved.

1.2.4    "Leased  Premises" - an area on the second  floor  (level  718) in
         Building B and an area on the third  floor  (level 722) in Building B.

         The boundaries of the part of the Leased Premises  located on level 718
         are marked in blue on the  drawing  attached  to this  agreement  as an
         integral part hereof and marked as "Appendix A-2-(1)" (this part of the
         Leased Premises is marked as unit B/2/102 of the Project).

         The boundaries of the part of the Leased Premises  located on level 722
         are marked in blue on the  drawing  attached  to this  agreement  as an
         integral part hereof and marked as "Appendix A-2-(2)" (this part of the
         Leased Premises is marked as unit B/3/102 of the Project).

         For the purposes of this agreement, it is agreed that the part of the
         Leased Premises located on level 718 shall be deemed to include 2,076
         m/2/ gross. It is
<PAGE>

         further agreed that for the purposes of this agreement, the part of the
         Leased Premises located on level 722 shall be deemed to include 1,930
         m2 gross. Therefore, it is further agreed that for the purposes of this
         agreement, the Leased Premises in their entirety shall be deemed to
         include 4,006 m2 gross, subject to measurement as set forth in the
         special appendix hereof.

         The Leased  Premises  shall also include any and all work,  systems and
         supplies pursuant to Appendix B hereof (technical specification).

1.2.5    "Dining  Room" - an  area of  approximately  150 m2 on the  ____  floor
         (level  ____) in  Building  B,  which  the  Lessor  undertakes  to make
         available to the Lessee and to other lessees in the  Building,  for use
         as a dining room, starting on the Date of Commencement of the Lease, as
         defined hereunder, until the dining room/restaurant planned in Building
         B or C, once built, shall be operated.

1.2.6    "Month" - a Gregorian month commencing on the first day of such month
         and ending on the last day of such month, according to the number of
         days in such month in such year, according to the Gregorian calendar.

1.2.7    "Management Company" - a company named by the Lessor to provide
         management and maintenance services for the Project, whether a company
         of the Lessor's or any other company to be chosen by the Lessor.

1.3      The Appendices attached to this agreement constitute an integral part
         hereof. Following are the appendices of the agreement:

         Appendix A-1: drawing of the Land.

         Appendix A-2-(1): drawing of the part of the Land located on level 718.

         Appendix A-2-(2): drawing of the part of the Land located on level 722.

         Appendix B: technical specification.

         Appendix C: interior work by the Lessee in the Leased Premises.

         Appendix D: canceled.

         Appendix E: insurance appendix (to which two sub-appendices are
                     attached).

         Appendix F: bank guarantee sample.

1.4      The headings of the sections and provisions of this agreement are
         inserted in order to facilitate the reading of the agreement and the
         appendices hereof. They constitute no part of the agreement and the
         agreement shall not be construed in accordance therewith.
<PAGE>

2.       Undertaking to Lease
         --------------------

         The Lessee hereby undertakes to lease the Leased Premises from the
         Lessor, and the Lessor hereby undertakes to lease the Leased Premises
         to the Lessee, in accordance with all the terms and conditions of this
         agreement.

         The Lessee further undertakes hereby to enter into a management
         contract with the Management Company named in this agreement, and to
         fulfill all the terms and conditions of the management contract as part
         of the undertakings thereof to the Lessor pursuant to this agreement.

3.       Term of the Lease
         -----------------

         The duration of lease of the Leased Premises is hereby determined as
         four years, commencing on January 1, 2001 (hereinafter: the "Date of
         Commencement of the Lease") and ending on December 31, 2004 (this
         period shall be referred to herein as the "Term of the Lease").

         The Lessee shall be entitled to extend the Term of the Lease in
         accordance with the provisions of Section 23 hereunder.

4.       Surrender of possession of the Leased Premises
         ----------------------------------------------

4.1      The Lessee hereby undertakes to take possession of the Leased Premises
         at the time of signing of this agreement.

4.2      By the date of surrender of possession of the Leased Premises to the
         Lessee, the Lessor shall complete the work on the Leased Premises in
         accordance with the "technical specification" attached to this
         agreement as an integral part hereof and marked as "Appendix B".

         For the sake of good order, it is hereby clarified that both the Lessor
         and other lessees in the building and in the Project may continue
         performing construction and finish on the Project (and on any part
         thereof) in the building at which the Leased Premises are located, and
         on other leased premises in such building, also after possession of the
         Leased Premises is surrendered to the Lessee.

         The aforesaid notwithstanding, it is clarified that the construction
         work to be performed by the Lessor after surrender of possession of the
         Leased Premises to the Lessee, shall be limited to performance of
         adjustments in other units in the building, construction of the new
         buildings (C and D) and land development work.
<PAGE>

         The Lessor shall endeavor to ensure that the work mentioned in the two
         foregoing paragraphs shall be performed with the least disturbance to
         the Lessee; in any event, reasonable access to the Leased Premises will
         be assured.

4.3      The Lessee confirms that it has perused the plans for the Leased
         Premises and the technical specification and has closely examined the
         same, and that subject to the performance thereof, the Leased Premises
         are to its full satisfaction.

4.4      The  provisions  of  Section 14  hereunder  and the  provisions  of the
         document  entitled  "interior  work by the  Lessee",  attached  to this
         agreement  as an integral  part hereof and marked as "Appendix C" shall
         apply in all matters pertaining to interior work to be performed by the
         Lessee on the Leased Premises.

5.       Rent payments
         -------------

5.1      The monthly rent for each Month during the Term of the Lease between
         January 1, 2001 and December 31, 2004 is determined hereby in the
         amount of NIS 164,406 (one hundred sixty four thousand, four hundred
         and six New Israeli Shekels), in addition to indexation (hereinafter:
         "Monthly Rent").

5.2      In the event that the Lessee shall exercise the right thereof to extend
         the Term of the Lease, as set out in Section 23 hereunder, the rent to
         be paid by the Lessee to the Lessor for each of the following periods
         shall be as follows:

         The monthly  rent for each Month  during the Term of the Lease  between
         January  1,  2005 and  December  31,  2006 and in the Term of the Lease
         between January 1, 2007 and December 31, 2008 shall be NIS 172,626 (one
         hundred  seventy two  thousand,  six hundred and twenty six New Israeli
         Shekels) in addition to indexation (hereinafter:  "Monthly Rent"). This
         amount  reflects  a 5%  increase  from the Rent  fixed  for the  period
         between January 1, 2001 and December 31, 2004 as set out above.

         The monthly  rent for each Month  during the Term of the Lease  between
         January  1,  2009 and  December  31,  2010 and in the Term of the Lease
         between January 1, 2011 and December 31, 2012 shall be NIS 181,258 (one
         hundred  eighty one  thousand,  two hundred and fifty eight New Israeli
         Shekels) in addition to indexation (hereinafter:  "Monthly Rent"). This
         amount  reflects  a 5%  increase  from the Rent  fixed  for the  period
         between January 1, 2005 and December 31, 2008 as set out above.

         The monthly  rent for each Month  during the Term of the Lease  between
         January  1,  2013 and  December  31,  2014 and in the Term of the Lease
         between January 1, 2015 and December 31, 2016 shall be NIS 190,321 (one
         hundred  ninety  thousand,  three  hundred  and twenty one New  Israeli
         Shekels) in addition to indexation (hereinafter:  "Monthly Rent"). This
         amount  reflects  a 5%  increase  from the Rent  fixed  for the  period
         between January 1, 2009 and December 31, 2012 as set out above.
<PAGE>

5.3      In addition to the Monthly Rent, the Lessee shall pay the Lessor V.A.T.
         at the lawful rate thereof at the time of payment. Rent shall be no
         less than the amounts set out in Section 5.1 above.

5.4      The Monthly Rent, as set out above, shall be linked to the index and
         paid in addition to indexation differences, the bases for indexation
         being as follows:

5.4.1    It is agreed that the "Basic Index" according to which the Monthly Rent
         shall be calculated is the index for the month of April 2000, published
         on May 15, 2000 (105.8 points).

5.4.2    It is agreed that the "Effective Index" shall be the index to be known
         on the date of actual payment of the Monthly Rent.

5.4.3    The "Index" shall mean the index known as the "Consumer Price Index"
         (including fruit and vegetables) published by the Central Statistics
         and Economic Research Bureau; if publication of such index shall be
         ceased, it shall be replaced by the index to be determined by the
         Central Statistics Bureau as the index replacing it, and if none is
         determined, then it shall be replaced by the index which the Bank of
         Israel shall accept as the index replacing the same, regardless of
         whether or not they shall be based on the same data on which the said
         Index is based.

6.       Payment of Rent
         ---------------

6.1      The Lessee undertakes to pay the Monthly Rent to the Lessor as follows:

6.1.1    The Monthly Rent throughout the Term of the Lease, in addition to
         V.A.T., shall be paid by the Lessee to the Lessor in quarterly
         installments (each in the amount of Monthly Rent for three months in
         addition to indexation and V.A.T.), payable for each three months in
         advance, no later than the first day of the first Month of each three
         months.

         The payment of Rent pursuant to this  subsection  shall be made in each
         year in which the lease shall be valid, on the first day of each of the
         following months: January, April, July, October.

         V.A.T. shall be paid by the Lessee to the Lessor in postdated checks,
         dated one day prior to the date of  payment  of V.A.T.  by the Lessor
         to the V.A.T. authorities.

6.1.2    It is agreed that on the Date of Commencement of the Lease, the Lessee
         shall pay the Lessor NIS 490,263 (four hundred ninety thousand, two
         hundred and sixty three New Israeli Shekels), in addition to V.A.T., on
         account of Monthly Rent for the period between January 1, 2001 and
         March 31, 2001.
<PAGE>

         It is agreed that all the remaining payments of Monthly Rent, from
         April 1, 2001, shall be paid in the installments and on the dates set
         out in Section 6.1.1 above.

6.1.3    Payment of Monthly Rent shall be made in addition to indexation, to be
         calculated according to the ratio between the "Basic Index" and the
         "Effective Index".

6.1.4    The Lessee may not make early  payment of Monthly  Rent  without
         the Lessor's consent, given in advance and in writing, if given.

6.2      The Lessee shall pay the Monthly Rent, in addition to V.A.T. and
         indexation as set out in Section 5 above, to the Lessor in the form of
         a bank transfer, by a standing order to be given to the branch of the
         bank at which the Lessee maintains its account, to the Lessor's bank
         account mentioned in Section 24 hereunder.

6.3      Each of the sub-provisions of this Section 6 constitutes a fundamental
         term of this agreement, breach of which shall constitute a fundamental
         breach of the agreement, subject also to the provisions of Section 18
         hereunder.

7.       Purpose of the lease
         --------------------

7.1      The Lessee leases the Leased Premises and any part thereof for the
         purpose of research, development, manufacture and marketing of
         communications products only, and undertakes to make use of the Leased
         Premises for this purpose only throughout the entire Term of the Lease.

7.2      The Lessee alone, at its expense, shall be liable for obtaining
         business licenses for the use of the Leased Premises. At the Lessee's
         request, the Lessor shall sign any document for which the signature of
         the owner of the rights to the property shall be required, for receipt
         of licenses and/or permits and/or approvals for the purpose of managing
         the Lessee's business at the Leased Premises, provided that the
         signature thereof shall impose thereon no responsibility and/or
         liability and/or cost of any kind.

7.3      The Lessee confirms that the Leased Premises are due to be used thereby
         for the performance of an "Approved Enterprise" and/or for the
         execution of an "Approved Plan" (as these terms are defined in the
         encouragement of capital investments laws), subject to the timetable of
         the Lessee's Approved Plan.

7.4      The provisions of Section 7.1 constitute a fundamental term of the
         agreement, breach of which shall constitute a fundamental breach of the
         agreement, subject also to the provisions of Section 18 hereunder.

8.       Identity of the users of the Leased Premises
         --------------------------------------------
<PAGE>

8.1      The Leased Premises are leased to the Lessee alone; the Lessee may not
         transfer the Leased Premises or any part thereof to another, nor may
         the Lessee award any right to the Leased Premises or any part thereof
         to others, without the Lessor's prior written consent, with the
         alternate lessee or the sub-lessee being to the Lessor's full
         satisfaction.

8.2      The aforesaid notwithstanding, the Lessor may reject a sub-lessee or
         an alternate lessee on reasonable grounds only.

8.3      The Lessee being a limited company, it is agreed that the Lessee shall
         notify the Lessor of any change in control of the company shortly after
         occurrence thereof.

         The Lessee's subsidiaries, sister companies, affiliated companies and
         parent company shall be entitled to make use of the Leased Premises,
         provided that the Lessee shall remain liable for all the undertakings
         thereof under this agreement. The Lessor's approval for use by such
         companies shall not be required.

8.4      Each of the provisions of this Section 8 constitutes a fundamental term
         of this agreement, breach of which shall constitute a fundamental
         breach of the agreement, subject also to the provisions of Section 18
         hereunder.

9.       Taxes and other mandatory payments on the Leased Premises
         ---------------------------------------------------------

         It is agreed by the parties that all taxes, levies, fees and other
         mandatory payments imposed with respect to the Leased Premises and any
         part thereof, without exception, shall be borne by the Lessee. Without
         derogating from the generality of the aforesaid and from other sections
         of this agreement, it is hereby clarified that the Lessee shall pay the
         municipal taxes for the Leased Premises.

         Property tax and other taxes imposed only on owners of property, and on
         owners alone, shall be paid by the Lessor.

10.      Costs of use and maintenance of the Leased Premises and liability
         -----------------------------------------------------------------
         for damages
         -----------

10.1     Expenses and payments of any kind required for the use of the Leased
         Premises and as a result of the use of the Leased Premises, including
         electricity, water, telephone, communications, heating, air-
         conditioning, gas - pursuant to the provisions of the management
         agreement - shall be borne by the Lessee alone.

10.2     If no water meter shall be installed at the Leased Premises, pursuant
         to the Lessor's decision, then payment for use of water shall be made
         by the Lessee to the Lessor (in addition to V.A.T.) directly or through
         the Management Company. The calculation of the Lessee's share in the
         costs of water usage
<PAGE>

         shall be made by the Lessor according to the proportionate share of the
         Leased Premises in the building at which the Leased Premises are
         located. Payment for water shall be made within two weeks from the date
         of delivery of an account by the Lessor to the Lessee on this matter.

         If water usage in the building at which the Leased Premises are located
         shall be marginal or negligible, then the Lessor may determine that the
         overall  use of water in the  building  shall be  included  within  the
         "actual expenses" of the Management Company, for which the Lessee shall
         pay a  "co-payment  towards the  company's  expenses" as set out in the
         management agreement.

         The Lessor undertakes to install separate water meters for occupants of
         the building consuming an extraordinary amount of water.

10.3     The Lessee alone shall be responsible for maintaining the Leased
         Premises and the systems thereof in proper working order, and to repair
         any damage or malfunction to be caused or to occur in the Leased
         Premises throughout the Term of the Lease, due to a negligent and/or
         malicious act and/or omission by the Lessee. The Lessee shall not be
         responsible for repairing any damage or malfunction occurring outside
         the external walls of the Leased Premises or in the structure of the
         concrete ceiling of the Leased Premises or in the systems of the
         building outside the Leased Premises which are not systems of the
         Leased Premises, except for damages or malfunctions resulting from a
         negligent and/or malicious act or omission by the Lessee. The Lessee
         shall be responsible for any damage caused to the windowpanes of the
         Leased Premises, provided that damage to the windowpanes of the Leased
         Premises as aforesaid shall have been caused by a negligent and/or
         malicious act or omission by the Lessee and/or by another acting on its
         behalf.

         The Lessor shall be responsible for repairing any damage or malfunction
         resulting from construction defects and/or use of defective
         construction materials and/or reasonable wear and tear, with respect to
         the systems of the building or the building itself, unless such damages
         shall result from a negligent and/or malicious act or omission by the
         Lessee, in which case the Lessee shall be responsible for such damage.

         It is agreed that the Lessor and/or others on its behalf shall be
         entitled, upon prior coordination with the Lessee, to pass through the
         Leased Premises for the purpose of servicing, repair and maintenance of
         the pipes passing through the shaft located in the Leased Premises,
         including the air-conditioning systems therein.

         The Lessor undertakes to perform urgent repairs, to the extent that the
         responsibility for performance of which is imposed thereon in this
         agreement, within 48 hours from the time of notification thereof by the
         Lessee. In the event that the Lessor shall have failed to repair the
         same within 48 hours as aforesaid, the Lessee shall be entitled to
         repair the same.
<PAGE>

10.4     The Lessee alone, at its expense, shall be liable for any damage caused
         to the Leased Premises, to property and to any person therein caused
         and/or to be caused due to a negligent and/or malicious act or omission
         by the Lessee and/or by another on its behalf.

         In addition to the aforesaid, it is agreed that the Lessee shall be
         liable for damages of any kind to be caused due to a negligent and
         malicious (sic) act or omission by the Lessee, to the Lessor and/or to
         the Management Company and/or to any third party including, and without
         derogating from the generality of the aforesaid, any bodily injury or
         damage to property belonging to any person found at any time in the
         area of the Project, and the Lessee hereby releases the Lessor and/or
         the Management Company from any lawful obligation in connection with
         any such damage, and it undertakes to indemnify and/or compensate them
         for any amount of damages to be suffered by the Lessor and/or the
         Management Company and for any amount charged to the Lessor and/or the
         Management Company in connection with any damage and expense and/or
         loss and/or fine to be incurred as aforesaid. The indemnification and
         compensation shall also include legal fees which the Lessor and/or the
         Management Company shall incur in connection with the aforesaid and
         shall be paid to the Lessor and/or to the Management Company
         immediately upon first demand.

         It is hereby declared and agreed that the Lessee and anyone acting on
         its behalf expressly waive any cause of action against the Lessor
         and/or the Management Company and others acting on their behalf and
         against other occupants of the Project, in whose lease and/or
         management agreements a parallel provision has been included with
         respect to the waiver of cause of action against the Lessee, for any
         damage for which it is entitled to indemnification under the insurance
         policies it shall have undertaken to take out in the management
         contract, the lease agreement or any other appendix constituting part
         thereof. The waiver of the right to claim shall extend also to damage
         for which the occupant is entitled to no indemnification due to the co-
         payment stated in the policy. The waiver of the right of
         indemnification shall not apply to anyone having caused damage
         maliciously.

11.      Insurance policies
         ------------------

         The Lessee undertakes to take out the insurance policies specified in
         Appendix E of the agreement, and undertakes to fulfill each of the
         undertakings imposed on the Lessee in Appendix E of the agreement.

         Each of the Lessee's undertakings in this Section 11 and in Appendix E
         of the agreement (and in the sub-appendices thereof) is a fundamental
         term of the agreement, breach of which constitutes a fundamental breach
         of the agreement, subject to the provisions of Section 18 hereunder.

12.      Inapplicability of tenants' protection
         --------------------------------------
<PAGE>

         The Lessee declares that it is aware of the following, and agrees
         thereto:

12.1     The Lessee neither is nor will be a protected tenant pursuant to the
         Tenants Protection Law (Consolidated Version), 5732-1972.

12.2     The lease is unprotected; neither the lease nor the parties to the
         agreement shall be subject to the said tenants protection law, nor to
         any other statute or law concerning the protection of tenants or the
         limitation of rent payment, which shall replace or supplement the said
         law.

12.3     The Lessee has not paid, and it is agreed that it shall not pay any
         payment, nor award the Lessor any right constituting key money. It is
         agreed that any payment, consideration, right or benefit which the
         Lessor shall extract from the lease, the Leased Premises and the Lessee
         shall too be deemed as part of the Rent for all intents and purposes,
         in addition to the Rent set out in this agreement.

12.4     The Lessee declares that it is aware that the Leased Premises
         constitute part of a building built after April 1, 1954 (in fact, after
         August 20, 1968), and was first leased after March 31, 1955 (in fact,
         after August 20, 1968), and that the Leased Premises are vacant of any
         lessee on the date of signing of this agreement.

12.5     The Lessee declares that the Leased Premises are vacant of any lessee
         and any person entitled to occupy the same (save the Lessor).

12.6     At the time of vacation of the Leased Premises by the Lessee, the
         Lessee shall be entitled to no payment or right of any kind from the
         Lessor and/or from any alternate lessee or from anyone else, including
         due to improvements or installations performed in the Leased Premises.

13.      Planning of and construction work on the Project
         ------------------------------------------------

13.1     The Lessee confirms that it is aware that the program, planning,
         development, building and construction work of the Project (each,
         "Project Construction Work") have not yet been completed, except for
         the existing building (Building A), in which too modifications and
         additions will be performed. The Project Construction Work (and any
         part thereof) includes, inter alia, the construction of buildings,
         development and finish, and interior work in finished parts of
         buildings. The work will be carried out in stages and pursuant to time
         tables, without limitation in time, according to existing plans or
         plans to be prepared or modified in the future, and all according to
         the Lessor's discretion.

         The aforesaid notwithstanding, it is clarified that after surrender of
         possession of the Leased Premises to the Lessee, the Lessor's work
         shall be limited to performance of adjustments in other units in the
         building, construction of the new buildings (C and D) and land
         development work. The Lessor shall
<PAGE>

         endeavor to ensure that the work, as set out above, shall be performed
         with the least disturbance to the Lessee, and in any event, reasonable
         access to the Leased Premises will be assured.

13.2     It is agreed that the Lessee shall entertain no claims and demands
         against the Lessor and any third party due to any disturbance or damage
         to be caused thereto, if any, due to the Project Construction Work (and
         any part thereof) or due to incompletion thereof, subject to that the
         Lessee's rights to reasonable use of the Leased Premises, including
         reasonable access to the Leased Premises, shall not be prejudiced. It
         is further agreed that the Lessee shall perform no act nor institute
         any proceeding which would prejudice the Lessor's liberty to plan the
         Project or the performance of Project Construction Work by the Lessor
         or by another on its behalf, and any part thereof.

14.      Interior work at the Leased Premises by the Lessee
         --------------------------------------------------

14.1     It is agreed that the Lessee shall receive possession of the Leased
         Premises in its technical condition as is, with respect to which or
         wherein all the installations and components specified in Appendix B
         hereof (technical specification) shall have been installed.

14.2     It is agreed that the Lessee alone, at its expense, shall be liable and
         responsible for any work for the adjustment of the Leased Premises for
         the purpose of the lease and the Lessee's use, including any
         construction, installation and assembly at the Leased Premises, and
         various systems and supplies (each, "Interior Work").

         No work in or supply to the Leased Premises, except as set forth in
         Appendix B hereof (technical specification) is or will be imposed on
         the Lessor.

14.3     It is hereby agreed that the Lessee may perform no Interior Work on the
         Leased Premises, other than subject to and in accordance with the
         provisions of Appendix C of the agreement, constituting an integral
         part hereof. The Lessee shall be responsible for obtaining any permit
         or license lawfully required in order to perform the Interior Work.

         The Lessee shall commence the Interior Work on the Leased Premises no
         later than September 15, 2000; provided, however, that the Lessee's
         plans (including the plans for the systems) shall have been approved by
         the Lessor in advance and in writing. The Lessee undertakes to complete
         the Interior Work on the Leased Premises by June 1, 2001, and
         undertakes to perform the same with the least disturbance to the other
         occupants in the building.

14.4     Upon completion of the Interior Work performed on the Leased Premises
         by the Lessee, the Lessee shall be prohibited from making any change to
         the Leased Premises and the systems thereof, or any addition to the
         Leased Premises (including any fixture or system) without the Lessor's
         advance and
<PAGE>

         written consent, to be examined by the Lessor in accordance with the
         exclusive considerations thereof.

         The aforesaid notwithstanding, the Lessee may erect interior partitions
         and perform interior modifications at the Leased Premises which have no
         bearing on the framework of the Leased Premises and/or of the building,
         provided that it shall have notified the Lessor of its intention of so
         doing at least seven days in advance and in writing, and the Lessor
         shall have had no objection thereto. The Lessor may object to the
         performance of interior changes by the Lessee as aforesaid on
         reasonable grounds only.

14.5     For the removal of doubt, it is hereby clarified that if the method of
         supply of water to the Leased Premises shall be directly from the local
         authority, then the Lessee shall be required to enter into a water
         supply contract for the Leased Premises with the Jerusalem municipality
         by the Date of Commencement of the Lease and to arrange for a water
         meter to be installed with respect to the Leased Premises at its
         expense by such date. It is further agreed that the Lessee shall enter
         into an electricity supply contract with the electricity company by the
         Date of Commencement of the Lease and shall arrange for an electricity
         meter to be installed at its expense with respect to the Leased
         Premises by such date.

14.6     In no event will the Lessee be allowed to perform any work or
         installation or use or modification requiring electricity or air-
         conditioning in excess of the amounts and volumes set forth in Appendix
         B (technical specification).

         It is hereby clarified and agreed that the Lessee may perform
         electrical, sanitary plumbing and air-conditioning work at the Leased
         Premises through contractors to be chosen thereby, provided that it
         shall have given the contractors performing work on the Project (for
         the Lessor) the right of first refusal to perform such work, if their
         prices shall be identical to the prices contained in proposals to be
         received by the Lessee from contractors chosen thereby. The Lessee's
         carrying out such work through contractors performing work on the
         Project for the Lessor - Sharon Ltd. and Calorit Ltd. - shall impose no
         liability on the Lessor.

14.7     It is hereby expressly stipulated that any covering, coating or
         concealment of the "piping of the building", and any construction in
         the vicinity of the "piping of the building", whether inside or outside
         the Leased Premises, must be made in such a manner so as to allow the
         Lessor (and others acting on its behalf) easy access to the pipes, in
         order to perform repairs or additions to or replacements of pipes, and
         so that any covering, coating, concealment or construction in the
         vicinity of "piping of the building" must be made so as to be easily
         removable without any difficulty for the performance of the aforesaid
         throughout the Term of the Lease.
<PAGE>

         The provisions of this Section 14.7 apply both with respect to Interior
         Work performed by the Lessee and with respect to work on the Leased
         Premises due to be performed, under this agreement, by the Lessor (if
         any).

         The provisions of this section with respect to facility of access to
         the "piping of the building" and the servicing thereof apply also with
         respect to the Lessee's interior design and to the placing of furniture
         and cupboards, all in order to allow the Lessor (and others acting on
         its behalf) easy access to the "piping of the building" for the
         servicing thereof, or for the performance of additions thereto.

         The term "piping of the building" shall mean any pipe (including
         drainage, water, sewage and sanitary pipes, insertion pipes of other
         systems such as electricity, communications etc.) serving the building
         at which the Leased Premises or another unit in the building of the
         Leased Premises are located.

         The performance of servicing or additions at the locations of the
         "piping of the building" as set out above shall be made by the Lessor
         after prior coordination by the Lessor with the Lessee, if possible
         (except for particularly urgent emergencies); if the Lessor shall cause
         damage to the covering near the "piping of the building" serviced or
         added to, then the Lessor shall be responsible for reinstating the
         former condition thereof.

14.8     Each of the provisions of this Section 14 is a fundamental term of the
         agreement, breach of which constitutes a fundamental breach of the
         agreement, subject also to the provisions of Section 18 hereunder.

15.      Return of the Leased Premises to the Lessor
         -------------------------------------------

15.1     Upon expiration of the Term of the Lease and at any time prior thereto,
         if the lease shall  terminate or expire prior to the full term thereof,
         the Lessee  shall return the Leased  Premises to the Lessor,  vacant of
         any person and object,  the Leased  Premises being in the condition set
         forth in Section 15.2 hereunder.

15.2     The Lessee undertakes to return the Leased Premises to the Lessor in a
         good and proper condition as received, except for fair wear and tear,
         in addition to all Interior Work, including all improvements,
         renovations, work, additions, modifications and systems to be performed
         or erected at the Leased Premises, whether by the Lessor or by the
         Lessee. The Lessor reserves the right to require the Lessee to remove
         any addition or work or facility performed or erected by the Lessee,
         provided that it shall notify the Lessee of its said demand at the time
         of approval of the Lessee's plans, submitted to the Lessor for approval
         pursuant to this agreement. In such a case, the Lessee shall be obliged
         to remove the same as required by the Lessor and to reinstate the
         former condition of the Leased Premises as surrendered to the Lessee,
         by the date of return of the Leased Premises to the Lessor.
<PAGE>

         If the Lessor shall not have required the Lessee to remove any work,
         addition, facility or system (including according to Appendix C of the
         agreement), then they shall all belong to the Lessor, and the Lessee
         shall be entitled to no right for payment, indemnification or
         consideration therefor from the Lessor.

15.3     Shortly prior to the expiration of the lease, the Lessor shall draw a
         list of work, defects and repairs (each, the "Repairs"), which the
         Lessee shall be required to perform by the date of return of the Leased
         Premises to the Lessor. It is clarified that the said list of work,
         defects and repairs shall not refer to any addition or work or facility
         performed or erected by the Lessee at the Leased Premises, but the
         Lessor shall be entitled to require the Lessee to remove the same, as
         set out in subsection 15.2 above.

15.4     The list referred to in Section 15.3 shall also include prices for the
         cost of the Repairs; in the event that the Lessee shall have failed to
         perform the Repairs by the end of the lease, then the Lessor shall be
         entitled to perform the same in lieu thereof, and the Lessee shall have
         to pay the Lessor, by the end of the lease, the value of the cost of
         the Repairs, also if the Lessor shall not have performed the same at
         such time or will not perform the same. The provisions hereof shall not
         derogate from any right of the Lessor's against the Lessee to receive
         any compensation or remedy due to the Lessee's failure to timely
         perform the Repairs, pursuant to the provisions of this agreement
         (including compensation due to any delay in a lease to others).

         Should the Lessee dispute the prices stated with respect to the cost of
         the Repairs, an Engineer agreed upon by both parties shall resolve the
         dispute no later than two weeks prior to the end of the lease. In the
         event that the parties shall fail to agree on the identity of the
         engineer, then such engineer shall be named by the secretary (or
         chairman) of the A.A.A.I. Association in the District of Jerusalem
         (pursuant to the request of either party), provided that the
         appointment and decision thereof shall be made within two weeks from
         the date of the Lessee's notice disputing the prices.

15.5     No later than two weeks prior to the end of the lease, the Lessee shall
         deliver to the Lessor approvals from the municipality, the electricity
         company and Bezeq whereby the Lessee shall have paid all payments
         imposed thereon with respect to the period up to the end of the lease,
         including water, electricity, municipal taxes and communication.

15.6     Each of the provisions of this Section 15 is a fundamental term of the
         agreement, breach of which shall constitute a fundamental breach of the
         agreement, subject also to the provisions of Section 18 hereunder.

16.      Maintenance of the building and services and facilities in the building
         -----------------------------------------------------------------------
         serving the Leased Premises and the Lessee's guests
         ---------------------------------------------------

16.1     The Lessor undertakes to provide a Management Company, the duties of
         which shall be to manage and operate the Project and to maintain the
         Project,
<PAGE>

         the entrances thereof (including paved areas, open areas and
         squares on the Land of the Project) and the passages and stairs
         therein, the systems of the Project and the external parts of each
         building in the Project.

16.2     The Lessor undertakes to provide a Management Company, the duties of
         which shall be to operate systems and facilities serving the Project,
         and to maintain the cleanliness of the Project.

16.3     The services of the Management Company shall apply only to such parts
         of the Project, surfacing of which has been completed.

16.4     The Lessor hereby notifies that it has named Park Meir Management
         Company Ltd. as the Management Company, which shall serve as the
         Management Company so long as the Lessor shall not determine otherwise.

16.5     The Lessee undertakes to enter into a contract with the Management
         Company at the time of signing of this agreement. Any breach of the
         contract with the Management Company shall be deemed as a breach of
         this agreement. In addition, the Lessee's failure to enter into such
         contract with the Management Company shall be deemed as a breach of a
         fundamental term of this agreement.

16.6     The Management Company shall arrange to maintain various insurance
         policies as set forth in the management contract, and it shall further
         be entitled to add or remove various insurance policies. However, the
         maintenance of insurance policies by the Management Company shall not
         derogate from the Lessee's liability or derogate from the Lessee's
         obligation to take out insurance.

16.7     The Lessee  undertakes  to pay the  Management  Company from the period
         commencing  on January 1, 2001 and ending upon  expiration of the lease
         and return of possession of the Leased  Premises to the Lessor pursuant
         to the provisions of this agreement.

16.8     The following modifications shall be made in the following provisions
         of the management contract:

         16.8.1  In Section 3.1, the word "undertakes" shall replace the word
                 "assumes".

         16.8.2  Section  3.1.7 - cleaning of  exterior  windows of
                 units in the Project - shall be added. Section 3.2.5 shall be
                 removed.

         16.8.3  Section 3.1.8 - guarding and supervision services for the
                 public areas, the Management Company's areas and the systems of
                 the Project - shall be added. Section 3.2.1 shall be removed.
<PAGE>

         16.8.4  Section 3.1.9 - posting of signs, direction and central signs
                 directing to buildings and to the various parts of the Project,
                 and direction and identification signs in buildings of the
                 Project, posting of other signs, including determination of the
                 design, size and location of signs belonging to various tenants
                 of the Project, and maintenance and renewal of signs in the
                 Project - shall be added. Section 3.2.4 shall be removed.

         16.8.5  The following words shall be added at the end of Section 3.2.6:
                 "in the event that the Lessee is included in such units".

         16.8.6  Section 3.2.7 shall be removed.

         16.8.7  The word "reasonable" shall replace the word "only" in
                 Section 3.2.9.

         16.8.8  The following words shall be added at the beginning of Section
                 3.4: "Subject to fulfillment of the company's undertakings
                 pursuant to this contract,".

         16.8.9  The following words shall be added at the end of Section 3.5:
                 "The aforesaid notwithstanding, the Management Company shall
                 not be responsible for the construction of the Project and/or
                 marketing of the same and/or any other issue not related to the
                 performance of mandatory or permitted services".

         16.8.10 The following words shall be added at the end of Section 4.9:
                 "The air-conditioning shall be operable at the Leased Premises
                 at least on Sundays through Thursdays between 07:30 and 20:00.
                 It is clarified that the Management Company shall be entitled
                 to extend the hours of operation of the air-conditioning at the
                 discretion thereof, including on Fridays".

         16.8.11 The following words shall be added at the end of Section 4.15:
                 "Elevators and central lighting shall be operable 24 hours a
                 day, 7 days a week. At the Lessee's request and subject to the
                 conditions stipulated in this management contract, the air-
                 conditioning shall be operated at the Leased Premises also
                 beyond the days and times set out in Section 4.9 above".

         16.8.12 The following words: "unless caused due to an act and/or
                 omission of the company or on its behalf", shall be added after
                 the words "all of the aforesaid" on the fifth line in Section
                 4.16.

         16.8.13 The following words shall be added at the end of Section 4.7:
                 "The foregoing bylaws shall not derogate from the rights of the
                 tenant pursuant to this agreement".
<PAGE>

         16.8.14 The following words shall be added at the end of Section 4.15:
                 "In the event that the tenant shall have disputed the company's
                 charges for the operation of the air-conditioning systems
                 outside the ordinary hours of operation, such dispute shall be
                 resolved by an air-conditioning consultant of the company's
                 and/or of the owner's, and his decision shall be final".

         16.8.15 The following words shall be added at the beginning of Section
                 5.1: "Subject to that the company shall fulfill the
                 undertakings thereof pursuant to this contract". The following
                 words shall be added at the end of the section: "It is
                 clarified that the aforesaid shall impose no obligation on the
                 Lessee to receive services from the company in the Leased
                 Premises which are not part of the mandatory services, as
                 defined in this contract".

         16.8.16 The following words shall be added after the parentheses in
                 Section 5.2: "It is agreed that the provisions of the "Project
                 bylaws" shall not derogate from the Lessee's rights pursuant to
                 this contract".

         16.8.17 The following words shall be added at the end of Section 5.3:
                 "Any entry to the Leased Premises (whether by virtue of this
                 contract or by virtue of the lease agreement) shall be made
                 only after prior coordination with the Lessee, except for
                 emergencies".

         16.8.18 The following words shall be added after the word "utter" in
                 the second line of Section 5.4: "during the term of the lease,
                 unless use of the Leased Premises shall have been prevented due
                 to an act and/or omission of the company and/or of the Lessor
                 and/or due to force majeure".

         16.8.19 Section 5.5 shall be removed.

         16.8.20 A comma shall be added at the end of the first sentence in
                 Section 5.6, followed by the words "if the tenant shall request
                 such service from the company".

         16.8.21 The following words shall be added after the definition of
                 "existing units" in Section 6.1: "It is hereby clarified that
                 municipal taxes for unleased units in the building shall be
                 paid by the owners".

         16.8.22 The following words shall be added after the definition of
                 "actual expenses" in Section 6.1: "It is hereby clarified that
                 the actual expenses shall not include the cost of supply and
                 consumption of electricity, air-conditioning etc., with respect
                 to unoccupied units in the building during the period of
                 performance of adjustments and interior work by the tenants of
                 such units, and such period only".
<PAGE>

         16.8.23 The following words shall be added at the end of Section 6.1:
                 "It is hereby clarified that the actual expenses shall not
                 include expenses unrelated to the management and maintenance of
                 the Project. Expenses involved in parking lot areas, with
                 respect to non-subscribers, will not be included in the
                 expenses of the company and shall be borne by the operator of
                 the parking lot alone".

         16.8.24 The following paragraph shall be added at the end of Section
                 6.2: "The aforesaid notwithstanding, co-payment towards the
                 company's expenses, payable by the tenant shall not exceed,
                 during the first period of the lease and this period only, an
                 amount in NIS equal to NIS 14.4 per one m2 gross, linked to the
                 consumer price index and in addition to V.A.T. as set out in
                 the law. In the event that co-payment towards the company's
                 expenses shall exceed the said amount, the tenant shall be
                 exempt from paying any sum above the said amount, during the
                 first period of the lease and this period only".

         16.8.25 Section 6.6 shall be removed.

         16.8.26 The following words shall be added at the end of Section 6.7:
                 "It is clarified that the aforesaid shall apply only to the
                 extent that the expenses incurred for the purpose of gaining
                 such income, directly or indirectly, shall not be included as
                 part of the actual expenses (including expenses for materials,
                 work, administration, general etc.)".

         16.8.27 A comma shall be added at the end of Section 6.8, followed by
                 the words "and all subject to the provisions of the second
                 paragraph of Section 6.2 above".

         16.8.28 The following words shall be added to Section 7.2: "The Lessee
                 shall be entitled to peruse the company's books of account with
                 respect to the actual expenses, the services and actions
                 thereof in the Project, twice a year, after coordination with
                 the company".

         16.8.29 The words "double the rate" shall be removed from the fifth
                 line of Section 8.1.

         16.8.30 Section 8.4 shall be removed.

         16.8.31 Section 9.3 shall be removed.

         16.8.32 The following words shall be added at the end of Section 9.4:
                 "and without derogating from the owners' undertakings pursuant
                 to this agreement and/or the lease agreement; furthermore, the
                 performance of the Management Company's undertakings through
                 subcontractors shall not derogate from the undertakings thereof
                 pursuant to this
<PAGE>

                 agreement. It is hereby clarified that in the event that the
                 Company shall transfer the obligations and rights thereof under
                 this management contract to another, such transfer shall be
                 made on the condition that the transferee shall assume all the
                 undertakings of the Management Company under this management
                 contract towards the tenant".

         16.8.33 The following words shall be added after the words "the
                 tenant's unit" in the second line of Section 9.6: "Provided,
                 however, that the tenant shall be responsible for such repairs
                 pursuant to the lease agreement".

         16.8.34 Section 9.7 shall be removed.

         16.8.35 The last sentence in Section 12 shall be removed. A comma shall
                 be added at the end of the first sentence, followed by the
                 following words: "provided that it shall have given the tenant
                 a warning of its intention of so doing at least 7 days prior to
                 the termination of services as aforesaid".

         16.8.36 The second paragraph in Section 13 shall be removed.

17.      Payments in arrears
         -------------------

         Without derogating from any right available to the Lessor pursuant to
         the agreement and any law due to the breach of the agreement, it is
         agreed that in any event in which the Lessee shall be late in paying
         any amount owed thereby to the Lessor pursuant to this agreement, the
         Lessee shall pay such amount to the Lessor with indexation, as set out
         in this agreement (and in the lack of a Basic Index with respect to the
         amount, then the "Basic Index" with respect to such amount shall be the
         index known on the date on which the Lessee shall have had to pay such
         amount), in addition to arrears interest double the interest rate
         (including commissions and costs) charged by Bank Hapoalim Ltd. (Tel
         Aviv main branch) in debit accounts of non-preferred clients; the
         calculation of such arrears interest shall be made in the manner and
         method as calculated by Bank Hapoalim Ltd. during the period of arrears
         (including compound interest).

         In the event that payment of Rent by the Lessee shall be no more than
         seven days in arrears, the Lessee shall pay the Lessor arrears interest
         at the rate of interest charged in debit accounts of Bank Hapoalim for
         the amount in arrears.

18.      Damages, restitution and remedies
         ---------------------------------

18.1     It is agreed that the payments and amounts owed by the Lessee, the
         dates of payment thereof and the rendering of the guarantees in full
         are fundamental terms of the agreement. This provision shall supplement
         any other provision in
<PAGE>

         this agreement and in the appendices thereof, in which various
         provisions have been determined to be fundamental terms of the
         agreement.

         The aforesaid notwithstanding, a delay of no more than seven days in
         the payment of Rent shall not be deemed as a breach of this agreement
         by the Lessee, provided that the Lessee shall pay the Lessor arrears
         interest at the rate of interest charged in debit accounts of Bank
         Hapoalim for the amount in arrears (up to seven days as aforesaid).

18.2     In the event that the Lessee shall have breached a fundamental term of
         the agreement, and in the event that the Lessee shall have breached any
         other term and shall have failed to rectify such breach within 30 days
         from the date of receipt of warning thereof, such failure shall be
         deemed as a fundamental breach of the agreement and the Lessor shall be
         entitled to terminate the agreement. Termination shall be made by
         written notice to be delivered to the Lessee or sent thereto by
         registered post.

18.3     In the event that the agreement shall have been lawfully terminated by
         the Lessor, as aforesaid, the Lessee shall be obliged to vacate the
         Leased Premises within two weeks from the date of termination, and the
         vacation shall be subject to the provisions of Section 15 above.

18.4     In addition to any remedy to which the Lessor is entitled, pursuant to
         the agreement or any law, due to the breach of the agreement by the
         Lessee, the Lessor shall be entitled to compensation from the Lessee
         for all damages, losses and diminution of revenue caused thereto as a
         result of the breach by the Lessee or due to the exercise of any remedy
         available to the Lessor.

         Without derogating from any right, compensation and other remedy to
         which the Lessor is entitled, it is agreed that the Lessee shall be
         obliged to pay the Lessor a daily fee for each day of delay in
         returning the Leased Premises to the Lessor pursuant to the provisions
         of Section 15 above, the amount of which shall be equal to 1/15th of
         the Monthly Rent. The Lessor's right to the fee and the Lessee's
         obligation to pay the same shall confer no right on the Lessee.

         It is agreed that the Lessor shall be entitled to liquidated damages in
         the event of the breach of any fundamental term by the Lessee, in an
         amount equal to the Rent due to the Lessor for 6 months of lease. The
         scope of such compensation is determined by the parties, after having
         been properly estimated by them while taking into consideration the
         length of the lease period and the special terms of the Rent determined
         by the Lessor in this agreement, and while taking into consideration
         other special terms agreed upon by the Lessor. The Lessor shall be
         entitled to the liquidated damages in addition to any damages, fees,
         rights or remedies available to the Lessor pursuant to this agreement
         and any law.

18.5     Any amount of any kind which a party to the agreement shall have paid
         in lieu of the other party, shall be repaid by the other party to the
         first party within
<PAGE>

         one week from the date of the first party's demand, in addition to
         indexation to be calculated from the date of payment until the end of
         such week; however, it is hereby expressly agreed that the Lessee shall
         not be entitled to offset any debt owed thereto by the Lessor pursuant
         to this section, or at all, against any payment owned by the Lessee to
         the Lessor.

18.6     The Lessor shall be entitled to foreclose guarantees and securities
         provided by the Lessee pursuant to Section 19 hereunder, in addition to
         any remedy and compensation to which the Lessor is entitled pursuant to
         the agreement and any law.

19.      Guarantees
         ----------

19.1     Revoked.

19.2     As security for the fulfillment of the undertakings thereof, the Lessee
         hereby delivers to the Lessor an autonomous financial bank guarantee in
         the amount of NIS 1,154,130 (one million, one hundred fifty four
         thousand, one hundred and thirty New Israeli Shekels) (linked to the
         index), in the form of the document attached to this agreement as an
         integral part hereof and marked "Appendix F". The sum of the bank
         guarantee as of the date of signing of the agreement is equal to
         $240,360 in addition to V.A.T. (which are, at present, equal to six
         months' Monthly Rent).

         The Basic Index for the bank guarantee shall be 105.8 points (April
         2000 index).

         The bank guarantee shall be in favor of the Lessor, and shall be valid
         for one year and three months from the date of signing of this
         agreement; the Lessee undertakes to extend the validity thereof so long
         as the Term of the Lease shall be in effect, for another year, in such
         a manner that there will always be such bank guarantee in favor of the
         Lessor, and that such bank guarantee shall be in effect for three
         months after expiration of the Term of the Lease.

         Extension of the bank guarantee must be carried out no later than two
         weeks prior to the expiration thereof. In the event that the Lessee
         shall fail to extend the validity thereof, the Lessor shall be entitled
         to exercise the same.

19.3     It is agreed that the Lessor shall be entitled to exercise the bank
         guarantee in the event that the Lessee shall fail to take possession of
         the Leased Premises on the date fixed herein, or in the event that the
         Lessee shall not have fulfilled any pecuniary obligation by such time,
         and in order to cover any undertaking and debt owed by the Lessee (to
         both the Lessor and the Management Company), and to cover any damage
         caused thereto by the Lessee, and in any event of breach of a
         fundamental term of the agreement by the Lessee (in addition to any
         remedy to which the Lessor shall be entitled under any law and the
         agreement); Provided, however, that it shall have given the Lessee - as
         a courtesy only, and without derogating from the autonomy of the bank
<PAGE>

         guarantee - notice of its intention of exercising the same at least
         seven days in advance.

         Exercise of the bank guarantee will not constitute, per se, revocation
         of the agreement, and the Lessee shall be obliged, immediately after
         exercise of the guarantee, to deliver a new bank guarantee to the
         Lessor in the form of Appendix F hereof, in such amount and of such
         effect as set out in Section 19.2 above.

19.4     The Lessor shall return the bank guarantee (or any amount remaining
         therefrom after exercise thereof) to the Lessee no later than three
         months after expiration of the lease, provided that the Lessee shall
         owe the Lessor no debt or amount at such time.

19.5     For the purpose of collecting and repaying any debt of the Lessee's and
         in order to ensure fulfillment of any obligation imposed on the Lessee
         (including any debt or obligation of the Lessee to the Management
         Company), the Lessor may exercise any security and any guarantee
         individually, or all of them, or any part of them together, and neither
         the Lessee nor any guarantor shall be entitled to prevent the Lessor
         from so doing. Bank guarantees in this agreement are autonomous and are
         not contingent on this agreement or otherwise, and neither the Lessee
         nor anyone who shall have caused the issuance of the bank guarantee
         shall be entitled to delay the exercise of the bank guarantee for any
         reason.

19.6     Any delay in the delivery of the guarantees pursuant to Section 19
         shall entitle the Lessor to postpone surrender of possession of the
         Leased Premises to the Lessee, but the Term of the Lease shall be
         calculated from the Date of Commencement of the Lease as determined by
         the Lessor, and the Lessee shall be liable for payment of Rent (and
         payment to the Management Company) and for any obligation imposed
         thereon pursuant to this agreement as of the "Date of Commencement of
         the Lease" or from the date set out herein, also if it shall have
         failed to take possession of the Leased Premises as aforesaid.

19.7     Each of the provisions of this Section 19 constitutes a fundamental
         term of this agreement, breach of which shall constitute a fundamental
         breach of the agreement, subject also to the provisions of Section 18
         hereunder.

20.      Miscellaneous
         -------------

20.1     The Lessee shall pay the Lessor, in connection and together with any
         payment made to the Lessor, value added tax at the lawful rate thereof
         at the time of payment. The Lessor shall deliver a tax invoice to the
         Lessee after the payment, within the period of time fixed in the law.

20.2     The parties shall bear the costs of stamping this agreement in equal
         shares.
<PAGE>

20.3     The Lessee shall be entitled to post an identifying signpost in the
         building of the Leased Premises. The size, design outline and location
         thereof must be approved in advance and in writing by the Lessor, in
         addition to any permit required by law, all under the Lessee's
         responsibility and at its expense.

20.4     The Lessee undertakes to properly comply with the provisions of any law
         in effect during the lease with respect to the Leased Premises, the use
         thereof, the business conducted therein and any act performed therein,
         throughout the duration of the lease.

         The Lessee shall be liable for any damage or cost incurred by the
         Lessor due to the Lessee's failure to fulfill such undertakings, and
         the Lessee shall be obliged to indemnify the Lessor, immediately upon
         demand, for any damage, fine, loss or expense incurred by the Lessor.

20.5     It is agreed that only actual payment of any amount owed by the Lessee
         to the Lessor, or the actual clearance of a promissory note, including
         payment of Rent, shall be deemed as proper payment. The mere delivery
         of promissory notes to the Lessor, pursuant to the provisions of this
         agreement, or the endorsement thereof, shall not constitute payment.

20.6     The Lessee confirms that it has examined the plans applicable to the
         Project and the Leased Premises at the planning and building
         authorities, and its ability to operate the Leased Premises in
         accordance with the purpose of the lease, and that it neither has nor
         shall entertain claims of any kind in connection with its ability or
         inability to lawfully obtain a business license.

         The failure to lawfully obtain a license, or any revocation of such
         license, shall not entitle the Lessee to terminate the lease. It is
         hereby expressly agreed that the Lessor neither undertakes, nor is
         liable to the Lessee or at all for any matter relating to the license
         required by the Lessee and in connection with the Lessee's ability to
         use the Leased Premises.

         All expenses, taxes and mandatory payments required in order to receive
         and maintain the license shall be borne by the Lessee alone. If the
         Lessor shall incur any cost due to the need for a license, or due to
         receipt or maintenance thereof, the Lessee shall repay the Lessor
         therefor within one week from being required to do so by the Lessor.

         The Lessee shall use the Leased Premises only in accordance with the
         purpose of the lease and with the provisions of any law.

         The provisions of this subsection notwithstanding, the Lessor
         undertakes to employ its best efforts in order to obtain a Form 4 for
         the Leased Premises by October 1, 2000. This date shall be postponed
         for no more than three months if the Form 4 shall not have been
         obtained by such time for reasons outside the Lessor's control. If the
         Lessor shall not be in possession of the Form 4 by the date of
         surrender of possession, the Lessor undertakes to provide the Lessee
<PAGE>

         with written confirmation from the safety engineer that there is no
         safety-related problem in taking possession of and occupying the Leased
         Premises. The Lessor undertakes that in any case it shall have the Form
         4 no later than three months from the said date. The Lessor undertakes
         to indemnify the Lessee for any damage and/or expense incurred or
         suffered thereby due to the fact that the Form 4 shall not have been
         obtained with respect to the Leased Premises, including for damage
         caused due to the non-receipt of insurance payments because of the
         absence of the Form 4.

20.7     The parties agree that this agreement alone reflects all that is
         stipulated, binding and agreed by and between the parties. No
         information, document, consent or notice given to the Lessee by the
         Lessor or on its behalf, if given, prior to the signing of this
         agreement, is or shall be of any effect.

         No obligation, stipulation, waiver or modification of the agreement
         shall be of any effect unless made in advance and in writing. The
         failure to exercise any remedy or guarantee shall not be deemed as a
         waiver.

20.8     The Lessor shall be entitled to transfer or pledge the rights thereof
         under this agreement to another or to others. The Lessor shall notify
         the Lessee thereof.

20.9     It is agreed that the Lessee shall be entitled to operate the Leased
         Premises also during the evening and night hours and on Saturday
         nights, after the Sabbath is out, and the Lessor confirms that it has
         no objection thereto; provided that the hours of operation shall comply
         with the provisions of any law. With respect to the operation of the
         systems of the Project during such hours or on Saturday nights, the
         Lessee shall coordinate such matters with the Management Company, and
         the operation of the systems and services of the Management Company
         (including air-conditioning) shall be made against such payment and
         under such terms and conditions as the Management Company shall
         determine. The Lessee has noted that it shall be required to pay
         special payments to the Management Company for the operation of the
         Leased Premises and the operation of the systems and the rendering of
         the services of the Management Company outside normal hours of
         operation and on Saturday nights, according to terms to be determined
         by the Management Company.

20.10    For the sake of good order, it is hereby emphasized that the Project
         shall not be operated on Saturdays, holidays and days of rest under any
         law. The Lessee has noted that the Project shall be closed at such
         times, and that emergency entry thereto shall only be possible through
         an entrance to be determined by the Management Company.

20.11    Since the Lessee is a limited company, it is agreed that the Lessor
         shall be entitled to terminate this agreement if a receivership order
         (including a temporary order) or a winding-up order (including a
         temporary order) shall be issued against the Lessee, in the event that
         such orders are not revoked within 30 days from the date of issuance
         thereof.
<PAGE>

20.12    It is agreed that the only venue for any legal proceeding between the
         parties shall be a court in Jerusalem.

21.      Special provisions
         ------------------

21.1     The Lessee undertakes that the appearance of the Leased Premises shall
         be kept clean and tidy at all times, both in the interior parts of the
         Leased Premises and in the exterior parts. The Lessee undertakes to
         continuously maintain the cleanliness of the Leased Premises.

21.2     The Lessee shall leave no furniture, fittings, packages, boxes,
         material, equipment, garbage or objects outside the Leased Premises.
         The Lessee shall make no use of any part of the building and the
         Project other than for passage to and from the Leased Premises.

21.3     The Lessee undertakes to receive no supplies at the Leased Premises at
         times and routes other than those determined by the Management Company,
         as set out in the contract with the Management Company.

21.4     The Lessee undertakes not to dispose of garbage, waste or packages from
         the Leased Premises, other than at times and through routes to be
         determined by the Management Company.

         The Lessee undertakes to store all waste, garbage and packages at a
         concealed place in the Leased Premises until it shall be entitled to
         dispose of the same as aforesaid.

21.5     The Lessee undertakes to perform no act and to make no use of the
         Leased Premises causing noise, odors, shock, smoke, dirt or a nuisance.

22.      Notices
         -------

         Any notice from either party to the other, delivered at the following
         address or sent thereto by registered post shall be deemed to have been
         received within 72 hours from the time of dispatch thereof by
         registered post (and in the event of delivery by hand - within 12 hours
         from the time of delivery thereof).

         The Lessee shall neither deliver nor send any notice, the day on which
         such notice shall be deemed to have arrived or been delivered shall be
         a Friday or the eve of a holiday or a Saturday or a holiday or the
         intermediate days of Passover and Succoth.

         The addresses of the parties for the purposes of this  agreement  shall
         be:

         The Lessor - 27, Hamered St., Tel Aviv (c/o "Isras") or any other
                      address in Tel Aviv of which the Lessor shall notify the
                      Lessee in writing.
<PAGE>

         The Lessee - at the Leased Premises or at Building 6, Kiriat Hamada
                      St., Har Hotzvim, P.O.B. 45017, Jerusalem (each and either
                      one of these two addresses). The Lessee's address at the
                      Leased Premises shall not change.

23.      Extension of the Term of the Lease
         ----------------------------------

23.1     It is agreed that the Lessee shall be entitled to extend the Term of
         the Lease for six additional periods of two years each, from January 1,
         2005 until December 31, 2016, provided that the conditions set forth in
         this section below shall have been met.

23.2     In the event that the Lessee shall wish to extend the Term of the Lease
         for an additional period of two years as aforesaid, the Lessee shall
         notify the Lessor thereof by written notice to be delivered to the
         Lessor no later than March 31 of each of the years 2004, 2006, 2008,
         2010, 2012 and 2014.

23.3     In the event that the Lessee shall have notified the Lessor of the
         extension of the Term of the Lease as aforesaid, the Term of the Lease
         shall be extended for another two years, and all the provisions of this
         agreement with the appendices thereof, the provisions of the management
         contract and the provisions of the parking agreement shall apply
         thereto, mutatis mutandis, and subject to the provisions of subsections
         23.4 and 23.5 hereunder.

23.4     In the event that the Lessee shall have notified the Lessor of its
         intention of extending the Term of the Lease as aforesaid, the Term of
         the Lease shall be extended as aforesaid, provided that the Lessee's
         notice of the extension of the Term of the Lease shall have been given
         on one of the dates set out in subsection 23.2 above, and subject to
         that the Lessee shall have fulfilled all the undertakings thereof in
         this agreement.

23.5     In the event that the Term of the Lease shall have been extended as
         aforesaid, the Rent to be paid by the Lessee to the Lessor in each of
         the extended lease periods shall be as set out in Section 5.2 above.

24.      Right of first refusal
         ----------------------

24.1     The parties agree that the Lessee shall have a right of first refusal
         with respect to the lease of additional areas of approximately 1,000 m2
         adjacent to the Leased Premises (level 718), demarcated in yellow on
         the drawing of the Leased Premises (hereinafter: the "Additional
         Areas"), pursuant to the terms and conditions set forth in this section
         hereunder.

         This right shall be available to the Lessee until December 31, 2001, at
         which time it shall expire ipso facto.

24.2     In the event that the Lessor shall have received an offer to lease any
         of the Additional Areas, the Lessor shall notify the Lessee thereof in
         writing, stating
<PAGE>

         the size of the area proposed to be leased, the location thereof, the
         proposed duration of the lease and the rent proposed by the potential
         lessee.

24.3     The Lessee shall be entitled to notify the Lessor in writing, within 15
         business days, of its wish to exercise its right with respect to the
         Additional Areas and to lease the same in lieu of the potential lessee.

24.4     In the event that the Lessee shall have notified the Lessor as
         aforesaid, the Additional Areas shall, starting three months after
         delivery of such notice by the Lessee, become part of the Leased
         Premises, as defined in this agreement, and shall be subject to all the
         provisions of the lease agreement, the appendices thereof, the
         management contract and the parking agreement signed at the time of
         signing of this lease agreement, mutatis mutandis and subject to the
         provisions of Section 24.5 hereunder.

         Without derogating from the aforesaid, the Lessor shall be entitled to
         require the Lessee to sign an additional lease agreement - identical to
         this lease agreement, mutatis mutandis - with respect to the Additional
         Areas, and the Lessee shall do so within 15 days from the date of
         receipt of the Lessor's demand as aforesaid; failure to do so shall
         release the Lessor from any obligation to the Lessee with respect to
         this right of first refusal.

24.5     If the Lessee shall exercise its said right, the Lessee shall pay the
         Lessor, starting three months after the date of delivery of the
         Lessee's notice as aforesaid, rent for the Additional Areas at the rate
         set out in Section 5 hereof, as being on the date of commencement of
         the lease of the Additional Areas.

24.6     In the event that the Lessee shall have given no notice of its wish to
         exercise its right with respect to the Additional Areas within the time
         frame set out in Section 24.3 above as aforesaid, the Lessor shall be
         entitled to lease the same to the potential lessee.

24.7     It is agreed and clarified that the Lessee's right of first refusal as
         set out in this section refers to the lease of all the Additional
         Areas, i.e., approximately 1,000 m2. In the event that the Lessor shall
         have notified the Lessee of an offer to lease an area contained in the
         Additional Areas but not all of the Additional Areas, the Lessee shall
         be entitled to exercise its right as aforesaid and to lease all of the
         Additional Areas from the Lessor. In the event that the Lessee shall
         refuse to lease all of the Additional Areas and shall wish to lease
         only the area contained therein, to which the proposal of the potential
         lessee shall refer, the Lessor shall not be obliged to lease the same
         to the Lessee and shall be entitled to lease the same to the potential
         lessee.

24.8     The provisions of Section 24.7 above notwithstanding, it is agreed that
         in the event that the Lessee shall not have exercised the right of
         first refusal conferred thereon pursuant to this section and the Lessor
         shall have leased an area contained in the Additional Areas to the
         potential lessee, the Lessee shall be entitled to lease the remaining
         areas contained in the Additional Areas, after
<PAGE>

         deduction of the area leased to the potential lessee from the Lessor,
         provided that it shall have notified the Lessor of its wish to do so
         within fifteen business days from the date of the Lessor's
         communication thereto concerning the potential lessee's proposal, and
         shall have fulfilled the Lessor's requirement to sign an additional
         lease agreement as set out in Section 24.4 above.

25.      Since the Lessor has pledged the rights thereof in the Project and the
         Leased Premises for the construction of the Project and as part of the
         financial support provided by Bank Hapoalim, it is therefore agreed
         that the Lessor pledges and assigns by way of a pledge all of the
         rights thereof against the Lessee to Bank Hapoalim, and hereby
         irrevocably instructs the Lessee to pay the Rent and all other
         payments, due and to be due thereto from the Lessee pursuant to this
         lease agreement, to the Lessor's account #696653 at the Rabin Square
         branch in Tel Aviv (#609) of Bank Hapoalim. The Lessee's signing of
         this lease agreement constitutes an undertaking on its part to the bank
         to act as aforesaid.

26.      Permission to park at the parking lots of the Project
         -----------------------------------------------------

         The Lessor confirms that 20 parking spaces (numbers ___ to ___,
         inclusive, in the parking lot of Building B) and 80 parking spaces
         (numbers ___ to ___, inclusive, in the parking lot in Building C) - 100
         parking spaces in total, shall be allotted to the Lessee in the parking
         lots of the Project, for the duration of the Term of the Lease,
         provided that the Lessee shall enter into a separate "parking
         agreement" with the parking lot operator, shall pay the parking fee in
         accordance with the "parking agreement" and shall fulfill all the other
         terms and conditions of the "parking agreement".

         It is agreed that the monthly parking fee for each parking space shall
         be NIS 287 (two hundred eighty seven New Israeli Shekels) (in addition
         to V.A.T.), linked to the index (Basic Index: 105.8 points).

         At the time of signing of this agreement, the Lessee and the Lessor are
         signing also a "parking agreement", but the Lessee confirms that the
         "parking lot operator" pursuant to the "parking agreement" shall be
         determined by the Lessor after the signing of the "parking agreement",
         and that any right and obligation of the "parking lot operator" shall
         belong to the said "parking lot operator" in lieu of the Lessor.

         Once the "parking lot operator" shall replace the Lessor, the Lessor
         shall have no obligation with respect to parking and to the parking
         lot, except for the confirmation thereof that the Lessee is entitled
         (under the foregoing conditions) to the said parking spaces, in
         consideration for the said fee.

         In all matters pertaining to parking, only the provisions of the
         "parking agreement" shall apply.

In witness whereof, the parties have hereto set their hands,
<PAGE>

This day, _____________, in Jerusalem

 /s/ Eli Kamar and Yair Verman                        /s/ Tal Mundlak-Avnon
-------------------------------                      -----------------------
Har Hotzvim Properties Ltd.                                  Vyyo Ltd.
The Lessor                                                  The Lessee

I, the undersigned, Meir Tzeiger, Adv., do hereby confirm that the said Lessee
(VYYO Ltd., P.C. 51-086689-0), the details of which are as aforesaid, has signed
the said agreement and the appendices thereof before me, and I confirm that its
signature as aforesaid is binding upon it.

This day, ________________, in _______________.

  /s/ Meir Tzeiger
----------------------
  Meir Tzeiger, Adv.

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