Document:

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                              EMPLOYMENT AGREEMENT

                  This Employment Agreement ("Agreement") is made effective as
of March 20, 2000 by and between SURGE COMPONENTS, INC. dba SUPERUS HOLDINGS, a
New York corporation (hereinafter, including its successors and/or parent,
"Company"), and CRAIG CARLSON (hereinafter "Employee").

                  WHEREAS, Company is engaged in the business of supplying
electronic components and, through certain of its subsidiaries, offers Internet
access and web integration services focused primarily on the Latin American
market; and

                  WHEREAS, Company desires to employ Employee, and Employee
desires to be employed by Company, as set forth herein.

                  NOW THEREFORE, in consideration of the foregoing recitals and
the respective covenants, terms and provisions contained herein, the parties
hereto agree as follows:

                  1.  EMPLOYMENT/SALARY.  Company hereby agrees to employ
Employee, and Employee hereby accepts such employment, on the terms and
conditions set forth herein, commencing on the first date set forth above (the
"Commencement Date") and continuing for a four (4) year period thereafter (the
"Term"), unless terminated earlier as provided in Section 2 below. Employee
shall report to the Company's Chief Executive Officer.

                  (a) Position; Duties. Employee shall be employed in the
position of Vice President, Corporate Development of the Company. Following
shareholder approval and effectiveness of the recapitalization and related
proposals (the "Recapitalization") described in the Company's preliminary proxy
and registration statement on Form S-4, filed on March 17, 2000, Employee shall
hold such position solely with Superus Holdings, Inc., the Company's successor
pursuant to the Recapitalization.

                  During the Term, Employee will devote his full time and best
efforts to Company and will not engage in any outside employment or business
(whether for compensation or otherwise) without the prior written consent of
Company's Board of Directors. Employee shall at all times faithfully,
industriously and to the best of Employee's ability, experience and talent
perform all of the duties that may be assigned to Employee hereunder. The
services to be rendered by Employee shall include, without limitation, all
services customarily rendered by persons engaged in the same capacity or in a
similar capacity in the Internet industry, and such other services as may be
reasonably requested by Company from time to time. Employee's responsibilities
shall specifically include, but not be limited to, assisting the Chief Executive
Officer and others with supervising, and where appropriate assisting with, the
operations of the Company's subsidiaries, if any, identifying business
opportunities which are consistent with the Company's evolving strategic goals,
and assisting with the evolution of the Company's strategic plan.

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                  Notwithstanding the foregoing, however, this Agreement shall
not be interpreted to prohibit Employee from making personal investments,
serving on other boards of directors and advisory boards, attending educational
classes, or conducting private business affairs if those activities do not
materially interfere with the services required under this Agreement, provided
that Employee shall not directly or indirectly acquire, hold or retain any
material interest in any business competing, directly or indirectly, with the
business of Company, except for investments in mutual and other similar funds.

                  (b) Base Salary. The Company shall pay Employee as
compensation for his services hereunder a base salary, starting as of the
Commencement Date, at the annualized rate of $150,000.00 (the "Base Salary"),
which amount shall be paid in accordance with the Company's payroll practices
and subject to the usual and applicable required withholding.

                  (c)      Bonus. Employee shall be entitled,  during the term
of this Agreement, to an annual bonus at the discretion of the compensation
committee of the Board of Directors of the Company.

                  (d) Reimbursement of Certain Amounts. Notwithstanding any
provision of this Agreement to the contrary, the parties acknowledge that any
amounts paid by the Company to Employee pursuant to this Agreement prior to the
date on which the Company's shareholders approve the Recapitalization shall be
reimbursed to the Company from the proceeds of the sale of certain 12%
convertible promissory notes due December 31, 2000, which the Company has
recently concluded offering to qualified investors.

                  2.  TERMINATION.

                  (a) Termination for Cause. The Company may terminate this
Agreement immediately for cause as defined herein. If Employee's employment is
terminated "for cause", Employee shall be entitled to exercise his stock options
(in accordance with the terms thereof) to the extent vested as of the date of
termination, and to receive his accrued but unpaid Base Salary and vacation
through the date of termination, and reimbursement for any expenses through the
date of termination, but shall not be entitled to receive any additional
compensation or accelerated vesting of his options. For purposes of this
Agreement, "Cause" is defined as: (i) any act of personal dishonesty taken by
the Employee in connection with his responsibilities to the Company which the
Board reasonably determines is injurious to the Company, (ii) Employee's
conviction of a felony or other crime involving moral turpitude which the Board
reasonably believes has had or will have a material detrimental effect on the
Company's reputation or business or which results in incarceration of Employee
for in excess of 15 days or (iii) the failure, refusal or neglect by Employee to
substantially perform all of his obligations to the Company after there has been
delivered to Employee a written demand for performance from the Company which
describes the basis for the Company's belief that Employee has not substantially
performed his duties and provides a 15 day cure period in connection therewith.

                  (b) Termination Without Cause. Employee and the Company
understand and acknowledge that Employee's employment with the Company
constitutes "at-will"

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employment. Therefore, Employee and the Company acknowledge that, subject to the
terms of this Agreement, either the Company or Employee may terminate the
employment relationship at any time with or without cause, by giving written
notice to the other party.

                  (c) Severance Payments and Other Benefits Upon Termination. If
the Company terminates Employee's employment without cause, or in the event of
an Involuntary Termination of the Employee, as hereinafter defined, the Company
(or its successor, as the case may be) shall pay Employee the following: (i) any
accrued but unpaid Base Salary and vacation through the date of termination;
(ii) a pro-ration with respect to any bonus to which he would otherwise be
entitled pursuant to any bonus or incentive compensation plan (or other
arrangement pursuant to which bonuses are awarded to employees on a formula
basis) adopted by the Board of Directors; (iii) reimbursement for any expenses
through the date of termination; (iv) the unvested portion, if any, of the stock
options granted by the Company to Employee shall be subject to the acceleration
provisions set forth in the stock option agreement applicable thereto; and (v) a
severance payment in an amount equal to three (3) month's salary, payable over a
period of three (3) months following the effective date of such Involuntary
Termination or termination without cause, subject to withholding as may be
required by law.

                  For purposes of this Agreement, "Involuntary Termination"
shall mean termination of Employee's employment with the Company immediately
following any of the following: (1) a reduction by the Company of Employee's
Base Salary as in effect immediately prior to such reduction; (2) a material
reduction by the Company in the kind or level of employee benefits to which
Employee is entitled immediately prior to such reduction that is not generally
applicable to all executive level employees of Company; (3) a material reduction
by the Company of Employee's duties and responsibilities; (4) Employee's
voluntary resignation following a Change of Control, as hereinafter defined, in
which Employee is not offered a position of comparable pay and responsibilities
in the same geographic area in which he worked immediately prior to the Change
of Control; (5) the continued breach by the Company of its material obligations
hereunder following 30 days' prior written notice thereof by the Employee.

                  For purposes of this Agreement, "Change of Control" means (i)
a merger or consolidation or other reorganization or transaction (but excluding
the recapitalization and reorganization of Company contemplated by the Merger
and/or the Merger Agreement) in which securities possessing more than 50% of the
total combined voting power of the Company's outstanding voting securities are
transferred or issued to a person or persons different from the persons holding
those securities immediately prior to such transaction, or (ii) the sale,
transfer or other disposition of all or substantially all of the Company's
assets.

                  (d) Termination of Recapitalization. If the Recapitalization
is terminated or abandoned after this Agreement has been executed, Employee or
the Company may immediately terminate this Agreement. If Employee's employment
is terminated hereunder, Employee shall be entitled to receive his accrued but
unpaid Base Salary and vacation through the date of termination and
reimbursement for any expenses through the date of termination. Employee shall
also be entitled to exercise any options that have vested as of the date of the
termination.

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                  3.  BENEFITS.

                  (a) Executive Benefits. Employee shall be eligible to
participate in the employee benefit plans currently and hereafter maintained by
the Company of general applicability to other senior executives of the Company.
Members of Employee's immediate family, including spouse and children, shall be
covered by all such benefits to the extent the terms of such benefit plans
permit such coverage.

                  (b) Stock Options. Effective as of the Commencement Date, the
Company shall grant Employee a stock option (the "Option") consisting of 200,000
shares of the Company's Class B Common Stock (or such other shares of common
stock as are exchangeable on a one-for-one basis into shares of Class B Common
Stock, the "Option Shares") at an exercise price equal to the fair market value
of the Company's outstanding Common Stock on the date of grant. The Option shall
begin vesting six (6) months after the Commencement Date, at which date 17.5% of
the Option Shares (or 35,000) shall vest and become exercisable, and the
remainder thereof (consisting of an option to purchase the remaining 82.5% -- or
165,000 -- of the Option Shares) shall vest and become exercisable ratably on a
monthly basis as of the last day of each of the next forty-two (42) months, such
that the Option shall be fully vested and exercisable in full on the fourth
(4th) anniversary of the Commencement Date, subject to Employee continuing to
render services to the Company. In addition, the Option shall be subject to
acceleration of vesting and exercisability upon the occurrence of certain
events, including if Employee is terminated by the Company without cause after
the expiration of six (6) months from the Commencement Date (which shall result
in acceleration of 25% of Employee's then unvested options), if Employee is
subject to an Involuntary Termination (which shall result in acceleration of 25%
of Employee's then unvested options), or due to a Change of Control, as defined
above (which shall result in acceleration of 75% of Employee's then unvested
options), all as set forth in greater detail in the stock option agreement by
and between Employee and the Company (the "Stock Option Agreement"), which
agreement shall be substantially in the form of Exhibit A hereto and is
incorporated by this reference as if fully set forth herein. In the event that
Employee elects to terminate his employment with Company without cause, or if
Company terminates Employee "for cause" pursuant to and as defined in Section
2(a) above, the Option shall immediately terminate, and Employee shall be
entitled to exercise the portion of the Option that was vested on the date of
termination only for such period of time as is provided in the Company's Stock
Option Plan and reflected in the Stock Option Agreement. In all other respects,
the Option shall be subject to the terms, definitions and provisions of the
Company's Stock Option Plan and the Stock Option Agreement.

                  (c) Vacation, Etc. Employee shall be entitled to three (3)
weeks of vacation time and sick leave during each calendar year during the term
of this Agreement, without loss of compensation, in addition to statutory
holidays normally observed by Company in accordance with Company's vacation and
holiday policy adopted from time to time by Company.

                  (d) Expenses. The Company will pay or reimburse Employee for
reasonable travel, entertainment or other expenses incurred by Employee in the
furtherance of or in connection with the performance of Employee's duties
hereunder in accordance with the

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Company's established policies, including reasonable relocation expenses from
Seal Beach, CA to San Francisco, CA (including the assistance of a relocation
specialist, and, if necessary, a maximum of two (2) month's short-term housing
in an amount to be approved by the Company in writing prior to undertaking).

                  All compensation payable to Employee hereunder shall be
subject to such deductions and withholdings as Company is from time to time
required to make pursuant to any federal, state or local law, governmental
regulation or order.

                  4.  REPRESENTATION AND WARRANTIES. Employee represents and
warrants to Company that: (i) Employee is under no contractual or other
restriction or obligation that is materially inconsistent with the execution of
this Agreement, the performance of his duties hereunder, or the rights of
Company hereunder, including, without limitation, any development agreement,
non-competition agreement or confidentiality agreement previously entered into
by Employee, and (ii) Employee is under no physical, mental or other disability
that would substantially hinder or prevent the performance of his duties under
this Agreement.

                  5.  CERTAIN COVENANTS.

                  (a)      Intellectual Property Rights.

                           (i) Employee agrees that the Company will be the sole
                  owner of any and all of Employee's "Discoveries" and "Work
                  Product," hereinafter defined, made during the term of his
                  employment with the Company, whether pursuant to this
                  Agreement or otherwise. For purposes of this Agreement,
                  "Discoveries" means all inventions, discoveries, improvements,
                  and copyrightable works (including, without limitation, any
                  information relating to the Company's software products,
                  source code, know-how, processes, designs, algorithms,
                  computer programs and routines, formulae, techniques,
                  developments or experimental work, work-in-progress, or
                  business trade secrets) made or conceived or reduced to
                  practice by Employee during the term of his employment by the
                  Company, whether or not potentially patentable or
                  copyrightable in the United States or elsewhere. For purposes
                  of this Agreement, "Work Product" means any and all work
                  product relating to Discoveries.

                           (ii) Employee shall promptly disclose to the Company
                  all Discoveries and Work Product. All such disclosures must
                  include complete and accurate copies of all source code,
                  object code or machine-readable copies, documentation, work
                  notes, flow-charts, diagrams, test data, reports, samples, and
                  other tangible evidence or results (collectively, "Tangible
                  Embodiments") of such Discoveries or Work Product. All
                  Tangible Embodiments of any Discoveries or Work Project will
                  be deemed to have been assigned to the Company as a result of
                  the act of expressing any Discovery or Work Product therein.

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                           (iii) Employee hereby assigns and agrees to assign to
                  the Company all of his interest in any country in any and all
                  Discoveries and Work Product, whether such interest arises
                  under patent law, copyright law, trade-secret law,
                  semiconductor chip protection law, or otherwise. Without
                  limiting the generality of the preceding sentence, Employee
                  hereby authorizes the Company to make any desired changes to
                  any part of any Discovery or Work Product, to combine it with
                  other materials in any manner desired, and to withhold
                  Employee's identity in connection with any distribution or use
                  thereof alone or in combination with other materials. This
                  assignment and assignment obligation applies to all
                  Discoveries and Work Product arising during Employee's
                  employment with the Company (or its predecessors), whether
                  pursuant to this Agreement or otherwise. Employee's agreement
                  to assign to the Company any of his rights as set forth in
                  this Section 6(a)(iii) shall not apply to any invention that
                  qualifies fully under the provisions of California Labor Code
                  Section 2870, where no equipment, supplies, facility or trade
                  secret information of the Company was used and that was
                  developed entirely upon Employee's own time, and (i) that does
                  not relate to Company business or to the Company's actual or
                  anticipated research or development, or (ii) that does not
                  result from any work performed by Employee for the Company.

                           (iv) At the request of the Company, Employee shall
                  promptly and without additional compensation execute any and
                  all patent applications, copyright registration applications,
                  waivers of moral rights, assignments, or other instruments
                  that the Company deems necessary or appropriate to apply for
                  or obtain Letters Patent of the United States or any foreign
                  country, copyright registrations or otherwise to protect the
                  Company's interest in such Discovery and Work Product, the
                  expenses for which will be borne by the Company. Employee
                  hereby irrevocably designates and appoints the Company and its
                  duly authorized officers and agents as his agents and
                  attorneys-in-fact to, if the Company is unable for any reason
                  to secure Employee's signature to any lawful and necessary
                  document required or appropriate to apply for or execute any
                  patent application, copyright registration application, waiver
                  of moral rights, or other similar document with respect to any
                  Discovery and Work Product (including, without limitation,
                  renewals, extensions, continuations, divisions, or
                  continuations in part), (i) act for and in his behalf, (ii)
                  execute and file any such document, and (iii) do all other
                  lawfully permitted acts to further the prosecution of the same
                  legal force and effect as if executed by him; this designation
                  and appointment constitutes an irrevocable power of attorney
                  coupled with an interest.

                           (v) To the extent that any Discovery or Work Product
                  constitutes copyrightable or similar subject matter that is
                  eligible to be treated as a "work made for hire" or as having
                  similar status in the United States or elsewhere, it will be
                  so deemed. This provision does not alter or limit Employee's
                  other obligations to assign intellectual property rights under
                  this Agreement.

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                           (vi) The obligations of Employee set forth in this
                  Section 6 (including, without limitation, the assignment
                  obligations) will continue beyond the termination of
                  Employee's employment with respect to Discoveries and Work
                  Product conceived or made by Employee alone or in concert with
                  others during Employee's employment with the Company, whether
                  pursuant to this Agreement or otherwise. Those obligations
                  will be binding upon Employee, his assignees permitted under
                  this Agreement, executors, administrators, and other
                  representatives.

                  (b)      Exposure to Proprietary Information.

                           (i) As used in this Agreement, "Proprietary
                  Information" means all information of a business or technical
                  nature that relates to the Company including, without
                  limitation, all information about software products whether
                  currently released or in development, all inventions,
                  discoveries, improvements, copyrightable work, source code,
                  know-how, processes, designs, algorithms, computer programs
                  and routines, formulae and techniques, and any information
                  regarding the business of any customer or supplier of the
                  Company or any other information that the Company is required
                  to keep confidential. Notwithstanding the preceding sentence,
                  the term "Proprietary Information" does not include
                  information that is or becomes publicly available through no
                  fault of Employee, or information that Employee learned prior
                  to the Effective Date.

                           (ii) In recognition of the special nature of his
                  employment under this Agreement, including his special access
                  to the Proprietary Information, and in consideration of his
                  employment pursuant to this Agreement, Employee agrees to the
                  covenants and restrictions set forth in Section 6 of this
                  Agreement.

                  (c)     Use of Proprietary Information; Restrictive Covenants.

                           (i) Employee acknowledges that the Proprietary
                  Information constitutes a protectible business interest of the
                  Company, and covenants and agrees that during the term of his
                  employment, whether under this Agreement or otherwise, and
                  after the termination of such employment, he will not,
                  directly or indirectly, disclose, furnish, make available or
                  utilize any of the Proprietary Information, other than in the
                  proper performance of his duties for the Company.

                           (ii) Employee will not, during the term of this
                  Agreement or, solely with respect to clauses 2 and 3 of this
                  subparagraph (ii), for a period of one year thereafter (the
                  "Restricted Period"), anywhere within the United States (the
                  "Restricted Territory"), directly or indirectly (whether as an
                  owner, partner, shareholder, agent, officer, director,
                  employee, independent contractor, consultant, or otherwise):

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                                    1. perform services for, or engage in, any
                           business that develops or sells products or services
                           which are competitive with any products or services
                           sold or developed by the Company for which Employee
                           has provided any assistance in planning, development,
                           marketing, training, support, or maintenance during
                           the period of Employee's employment with the Company
                           (the "Products");

                                    2. except on behalf of the Company, solicit
                           any person or entity who is, or was at any time
                           during the twelve-month period immediately prior to
                           the termination of Employee's employment with the
                           Company, a customer of the Company for the sale of
                           the Products or any product or service of a type then
                           sold by the Company for which Employee provided any
                           direct, material assistance in planning, development,
                           marketing, training, support, or maintenance; or

                                    3. solicit  for  employment  any  person who
                           is, or was at any time  during  the  twelve-month
                           period  immediately prior to the termination of
                           Employee's employment with the Company, an employee
                           of the Company.

                  (d) Scope/Severability. The parties acknowledge that the
business of the Company is and will be national and international in scope and
thus the covenants in this Section 6 would be particularly ineffective if the
covenants were to be limited to a particular geographic area of the United
States. If any court of competent jurisdiction at any time deems the Restricted
Period unreasonably lengthy, or the Restricted Territory unreasonably extensive,
or any of the covenants set forth in this Section 6 not fully enforceable, the
other provisions of this Section 6, and this Agreement in general, will
nevertheless stand and to the full extent consistent with law continue in full
force and effect, and it is the intention and desire of the parties that the
court treat any provisions of this Agreement which are not fully enforceable as
having been modified to the extent deemed necessary by the court to render them
reasonable and enforceable and that the court enforce them to such extent (for
example, that the Restricted Period be deemed to be the longest period
permissible by law, but not in excess of the length provided for in Section
5(c), and the Restricted Territory be deemed to comprise the largest territory
permissible by law under the circumstances).

                  (e) Return of Company Materials upon Termination. Employee
acknowledges that all records, documents, and Tangible Embodiments containing or
of Proprietary Information prepared by Employee or coming into his possession by
virtue of his employment by the Company are and will remain the property of the
Company. Upon termination of his employment with the Company, Employee shall
immediately return to the Company all such items in his possession and all
copies of such items.

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                  6.  EQUITABLE REMEDIES.

                  (a) Employee acknowledges and agrees that the agreements and
covenants set forth in Sections 5(a), (b), (c), (d) and (e) above are reasonable
and necessary for the protection of the Company's business interests, that
irreparable injury will result to the Company if Employee breaches any of the
terms of said covenants, and that in the event of Employee's actual or
threatened breach of any such covenants, the Company will have no adequate
remedy at law. Employee accordingly agrees that, in the event of any actual or
threatened breach by him of any of said covenants, the Company will be entitled
to immediate injunctive and other equitable relief, without bond and without the
necessity of showing actual monetary damages. Nothing in this Section 6 will be
construed as prohibiting the Company from pursuing any other remedies available
to it for such breach or threatened breach, including the recovery of any
damages that it is able to prove.

                  (b) Each of the covenants in Sections 5(a), (b), (c), (d) and
(e) above will be construed as independent of any other covenants or other
provisions of this Agreement.

                  (c) In the event of any judicial determination that any of the
covenants in Sections 5(a), (b), (c), (d), and (e) above are not fully
enforceable, it is the intention and desire of the parties that the court treat
said covenants as having been modified to the extent deemed necessary by the
court to render them reasonable and enforceable, and that the court enforce them
to such extent.

                  7.  MISCELLANEOUS.

                  (a) Modification; Prior Claims. This Agreement and the Stock
Option Agreement set forth the entire understanding and agreement of the parties
with respect to the subject matter hereof, supersede all existing agreements,
arrangements or understandings, whether oral or written, between them concerning
such subject matter, and may be modified only by a written instrument duly
executed by each party. Except as otherwise specifically provided for in this
Agreement, Employee hereby agrees and acknowledges that any and all
compensation, reimbursement or other obligations or liabilities of Company due
to Employee prior to the effective date of this Agreement have been received and
satisfied in full by Company and Employee hereby waives and releases any claims
which he may have relating thereto or resulting therefrom.

                  (b) Assignment. This Agreement shall inure to the benefit of,
and be binding upon, the parties and their respective successors and assigns;
provided, however, that this Agreement may not be assigned by Employee, nor may
any of Employee's duties hereunder be delegated, without the prior written
consent of Company, which consent may be given or withheld by Company in its
sole discretion. The rights of Company under this Agreement may not be assigned
without the consent of Employee, which consent may be given or withheld by
Employee in his sole discretion.

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<PAGE>

                  (c) Excise Tax. If any payments or transfers of property to be
made to Employee hereunder are subject, in whole or in part, to the excise tax
imposed by Section 4999 of the Internal Revenue Code of 1986 (the "Excise Tax"),
and application of Section 280G of the Code can be avoided by an appropriate
shareholder vote pursuant to Section 280G(b)(5)(A) of the Code, the Company and
Employee agree that they will respectively take all reasonable steps necessary
or appropriate to obtain a favorable shareholder vote to ensure that the Excise
Tax and the provisions of Section 280G are not applicable with respect to such
compensation.

                  (d) Survival. The covenants, agreements, representations and
warranties contained in or made pursuant to (i) Sections 4 and 5 hereof by
Employee and (ii) Section 2(c) hereof by Company shall survive the termination
of this Agreement and Employee's employment with Company.

                  (e) Third Party Beneficiaries. Except as expressly provided
herein with respect to successors and assigns of the parties, this Agreement
does not create, and shall not be construed as creating, any rights enforceable
by any person or entity not a party to this Agreement.

                  (f) Waiver. The failure of either party hereto at any time to
enforce performance by the other party of any provision of this Agreement shall
in no way affect such party's rights thereafter to enforce the same, nor shall
the waiver by either party of any breach of any provision hereof be deemed to be
a waiver by such party of any other breach of the same or any other provision
hereof.

                  (g) Section Headings. The  headings of the several sections in
this Agreement are inserted solely for the convenience of the parties and are
not a part of and are not intended to govern, limit or aid in the construction
of any term or provision hereof.

                  (h) Notices. All notices and other communications required or
permitted under this Agreement shall be in writing, served personally on, or
mailed by certified or registered mail to, the party to be charged with receipt
thereof. Notices and other communications served by mail shall be deemed given
hereunder three (3) calendar days after deposit of such notice of communication
in the United States mail as certified or registered mail, with postage prepaid
and duly addressed to whom such notice or communications is to be given, in the
case of (i) Company: Surge Components, Inc., 1016 Grand Boulevard, Deer Park,
New York 11729, with a copy to Snow Becker Krauss P.C., 605 Third Avenue, 25th
Floor, New York, New York 10158, or (ii) Employee: Craig Carlson, 119 Seventh
Street, #6, Seal Beach, CA 90740 (or such future address as Mr. Carlson will
provide the Company). Any party may change said party's address for purposes of
giving notices under this Section by giving to the other party a written notice
of such change in the manner provided in this Section.

                  (i) Severability. All sections, clauses thereof and covenants
contained in this Agreement are severable, and in the event any of them shall be
held to be invalid by any court, this Agreement shall be interpreted as if such
invalid sections, clauses or covenants were not contained herein.

                                       10

<PAGE>

                  (j) Applicable Law. This Agreement is made with reference to
the laws of this State of California, and shall be governed by and construed in
accordance therewith. Any legal action, suit or proceeding brought by either
party to enforce or interpret any term or provision of this Agreement shall be
brought in the appropriate state or federal court located in San Francisco,
California. The prevailing party in any such legal action, suit or proceeding
shall be entitled to have and recover from the losing party such prevailing
party's attorneys' fees and costs incurred in connection therewith.

                  (k) Counterparts. This Agreement may be executed in one or
more counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same Agreement.

                  IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be duly executed and have made it effective as of the Effective
Date of this Agreement.

                                               COMPANY:

                                               SURGE COMPONENTS, INC.,
                                               a New York corporation

                                               By: /s/Adam Epstein
                                                 -------------------------------
                                                   Adam Epstein, Chairman

                                               EMPLOYEE:

                                                /s/Craig Carlson
                                               ---------------------------------
                                               Craig Carlson

                                       11<PAGE>

[BLUMBERG LAW PRODUCTS]

                                          Distributed by Blumberg Excelsior Inc.
                                                                       NYC 10013

A 35 -- Lease, Business Premises,
        Loft, Office or Store  11-98

This Lease made the 01st day of October 2000 between

                 Great American Realty of 95 Jefryn Blvd., LLC
                     2131 Newbridge Road Bellmore, NY 11710

hereinafter referred to as LANDLORD, and

                                SURGE COMPONENTS

hereinafter jointly, severally and collectively referred to as TENANT.

        Witnesseth, that the Landlord hereby leases to the Tenant, and the
Tenant hereby hires and takes from the Landlord

           11625 sq. ft., 2000 base year, taxes, C.A.M. and insurance

in the building known as

                    95 JEFRYN BOULEVARD, DEER PARK, NY 11729

to be used and occupied by the Tenant

                        OFFICE SPACE & WAREHOUSE STORAGE

and for no other purpose, for a term to commence on October 1, 2000 and to end
on September 31, 2010 unless sooner terminated as hereinafter provided, at the
ANNUAL RENT of

                               SEE ATTACHED RIDER

all payable in equal monthly instalments in advance on the first day of each and
every calendar month during said term, except the first instalment, which shall
be paid upon the execution hereof.

                           THE TENANT JOINTLY AND SEVERALLY COVENANTS:

                           FIRST.--That the Tenant will pay the rent as above
                  provided.

REPAIRS                    SECOND.--That, throughout said term the Tenant will
                  take good care of the demised premises, fixtures and
ORDINANCES        appurtenances, and all alterations, additions and improvements
AND               to either; make all repairs in and about the same necessary to
VIOLATIONS        preserve them in good order and condition, which repairs shall
                  be, in quality and class, equal to the original work; promptly
ENTRY             pay the expense of such repairs; suffer no waste or injury;
                  give prompt notice to the Landlord of any fire that may occur;
INDEMNIFY         execute and comply with all laws, rules, orders, ordinances
LANDLORD          and regulations at any time issued or in force (except those
                  requiring structural alterations), applicable to the demised
                  premises or to the Tenant's occupation thereof, of the
                  Federal, State and Local Governments, and of each and every
                  department, bureau and official thereof, and of the New York
                  Board of Fire Underwriters; permit at all times during usual
                  business hours, the Landlord and representatives of the
                  Landlord to enter the demised premises for the purpose of
                  inspection, and to exhibit them for purposes of sale or
                  rental; suffer the Landlord to make repairs and improvements
                  to all parts of the building, and to comply with all orders
                  and requirements of governmental authority applicable to said
                  building or to any occupation thereof; suffer the Landlord to
                  erect, use, maintain, repair and replace pipes and conduits in
                  the demised premises and to the floors above and below;
                  forever indemnify and save harmless the Landlord for and
                  against any and all liability, penalties, damages, expenses
                  and judgments arising from injury during said term to
                  person or property of any nature, occasioned wholly or in part
                  by any act or acts, omission or omissions of the Tenant, or
                  of the employees, guests, agents, assigns or undertenants of
                  the Tenant and also for any matter or thing growing out of the
                  occupation of the demised premises or of the streets,
                  sidewalks or vaults adjacent thereto; permit, during the six
                  months next prior to the expiration of the term the usual
                  notice "To Let" to be placed and to remain unmolested in a
                  conspicuous place upon the exterior of the demised premises;
<PAGE>

                  repair, at or before the end of the term, all injury done by
                  the installation or removal of furniture and property; and at
                  the end of the term, to quit and surrender the demised
                  premises with all alterations, additions and improvements in
                  good order and condition.

MOVING                     THIRD.--That the Tenant will not disfigure or deface
INJURY            any part of the building, or suffer the same to be done,
SURRENDER         except so far as may be necessary to affix such trade fixtures
                  as are herein consented to by the Landlord; the Tenant will
                  not obstruct, or permit the obstruction of tile street or the
                  sidewalk adjacent thereto; will not do anything, or suffer
NEGATIVE          anything to be done upon the demised premises which will
COVENANTS         increase the rate of fire insurance upon the building or any
                  of its contents, or be liable to cause structural injury to
                  said building; will not permit the accumulation of waste or
                  refuse matter, and will not, without the written consent of
                  the Landlord first obtained in each case, either sell, assign,
                  mortgage or transfer this lease, underlet the demised premises
OBSTRUCTION       or any part thereof, permit the same or any part thereof to be
SIGNS             occupied by anybody other than the Tenant and the Tenant's
                  employees, make any alterations in the demised premises, use
                  the demised premises or any part thereof for any purpose other
                  than the one first above stipulated, or for any purpose deemed
AIR               extra hazardous on account of tire risk, nor in violation of
CONDITIONING      any law or ordinance. That the Tenant will not obstruct or
                  permit the obstruction of the light, halls, stairway or
                  entrances to the building, and will not erect or inscribe any
                  sign, signals or advertisements unless and until the style and
                  location thereof have been approved by the Landlord; and if
                  any be erected or inscribed without such approval, the
                  Landlord may remove the same. No water cooler, air
                  conditioning unit or system or other apparatus shall be
                  installed or used without the prior written consent of
                  Landlord.

                           IT IS MUTUALLY COVENANTED AND AGREED, THAT

FIRE CLAUSE                FOURTH.--If the demised premises shall be partially
                  damaged by fire or other cause without the fault or neglect of
                  Tenant, Tenant's servants, employees, agents, visitors or
                  licensees, the damages shall be repaired by and at the expense
                  of Landlord and the rent until such repairs shall be made
                  shall be apportioned according to the part of the demised
                  premises which is usable by Tenant. But ff such partial damage
                  is due to the fault or neglect of Tenant, Tenant's servants,
                  employees, agents, visitors or licensees, without prejudice to
                  any other rights arid remedies of Landlord and without
                  prejudice to the rights of subrogation of Landlord's insurer,
                  the damages shall be repaired by Landlord but there shall be
                  no apportionment or abatement of rent. No penalty shall accrue
                  for reasonable delay which may arise by reason of adjustment
                  of insurance on the part of Landlord and/or Tenant, and for
                  reasonable delay on account of "labor troubles", or any other
                  cause beyond Landlord's control. If the demised premises are
                  totally damaged or are rendered wholly untenantable by fire or
                  other cause, and if Landlord shall decide not to restore or
                  not to rebuild the same, or if the building shall be so
                  damaged that Landlord shall decide to demolish it or to
                  rebuild it, then or in any of such events Landlord may, within
                  ninety (90) days after such fire or other cause, give Tenant a
                  notice in writing of such decision, which notice shall be
                  given as in Paragraph Twelve hereof provided, and thereupon
                  the term of this lease shall expire by lapse of time upon the
                  third day after such notice is given, arid Tenant shall vacate
                  the demised premises arid surrender the same to Landlord. If
                  Tenant shall not be in default under this lease then, upon the
                  termination of this lease under the conditions provided for in
                  the sentence immediately preceding, Tenant's liability for
                  rent shall cease as of the day following the casualty. Tenant
                  hereby expressly waives the provisions of Section 227 of the
                  Real Property Law and agrees that the foregoing provisions of
                  this Article shall govern and control in lieu thereof. If the
                  damage or destruction be due to the fault or neglect of Tenant
                  the debris shall be removed by, and at the expense of, Tenant.

EMINENT                    FIFTH.--If the whole or any part of the premises
DOMAIN            hereby demised shall be taken or condemned by any competent
                  authority for any public use or purpose then the term hereby
                  granted shall cease from the time when possession of the part
                  so taken shall be required for such public purpose and without
                  apportionment of award, the Tenant hereby assigning to the
                  Landlord all right and claim to any such award, the current
                  rent, however, in such case to be apportioned.

LEASE NOT                  SIXTH.--If, before the commencement of the term, the
IN EFFECT         Tenant be adjudicated a bankrupt, or make a "general
                  assignment," or take the benefit of any insolvent act, or if a
DEFAULTS          Receiver or Trustee be appointed for the Tenant's property, or
                  if this lease or the estate of the Tenant hereunder be
TEN DAY           transferred or pass to or devolve upon any other person or
NOTICE            corporation, or if the Tenant shall default in the performance
<PAGE>

                  of any agreement by the Tenant contained in any other lease to
                  the Tenant by the Landlord or by any corporation of which an
                  officer of the Landlord is a Director, this lease shall
                  thereby, at the option of the Landlord, be terminated and in
                  that case, neither the Tenant nor anybody claiming under the
                  Tenant shall be entitled to go into possession of the demised
                  premises. If after the commencement of the term, any of the
                  events mentioned above in this subdivision shall occur, or if
                  Tenant shall make default in fulfilling any of the covenants
                  of this lease, other than the covenants for the payment of
                  rent or "additional rent" or if the demised premises become
                  vacant or deserted, the Landlord may give to the Tenant ten
                  days' notice of intention to end the term of this lease, and
                  thereupon at the expiration of said ten days' (if said
                  condition which was the basis of said notice shall continue to
                  exist) the term under this lease shall expire as fully and
                  completely as if that day were the date herein definitely
                  dated for the expiration of the term and the Tenant will then
                  quit and surrender the demised premises to the Landlord, but
                  the Tenant shall remain liable as hereinafter provided.
<PAGE>

THE POSSESSION             If the Tenant shall make default in the payment of
BY LANDLORD       rent reserved hereunder, or any item of "additional rent"
                  herein mentioned, or any part of either or in making any other
RE-LETTING        payment herein provided for, or if the notice last above
                  provided for shall have been given and if the condition which
WAIVER            was the basis of said notice shall exist at the expiration of
BY TENANT         said ten days' period, the Landlord may immediately, or at any
                  time thereafter, re-enter the demised premises and remove all
                  persons and all or any property therefrom, either by summary
                  dispossess proceedings, or by any suitable action or
                  proceeding at law, or by force or otherwise without being
                  liable to indictment, prosecution or damages therefore, and
                  re-possess and enjoy said premises together with all
                  additions, alterations and improvements. In any such case or
                  in the event that this lease be "terminated" before the
                  commencement of the term, as above provided, the Landlord may
                  either re-let the demised premises or any part or parts
                  thereof for the Landlord's own account, or may, at the
                  Landlord's option, re-let the demised premises or any part or
                  parts thereof as the agent if the Tenant, and receive the
                  rents therefor, applying the same first to then payment of
                  such expenses as the Landlord may have incurred, and them to
                  the fulfillment of the covenants of the Tenant herein, and the
                  balance, if any, at the expiration of the term first above
                  provided for, shall be paid to the Tenant. Landlord may rent
                  the premises for a term extending beyond the term hereby
                  granted without releasing Tenant from any liability. In the
                  event that the term of this lease shall expire as above in
                  this subdivision "Sixth" provided, or terminate by summary
                  proceedings or otherwise, and if the Landlord shall not
                  re-let the demised premises for the Landlord's own account,
                  then, whether or not the premises be re-let, the Tenant shall
                  remain liable for, and the Tenant hereby agrees to pay to the
                  Landlord, until the time when this lease would have expired
                  but for such termination or expiration, the equivalent of the
                  amount of all of the rent and "additional rent" reserved
                  herein, less the avails of reletting, if any, and the same
                  shall be due and payable by the Tenant to the Landlord on the
                  several rent days above specified, that is, upon each of
                  such rent days the Tenant shall pay to the Landlord the amount
                  of deficiency then existing. The Tenant hereby expressly
                  waives any and all right of redemption in case the Tenant
                  shall be dispossessed by judgment or warrant of any court or
                  judge, and the Tenant waives and will waive all right to trial
                  by jury in any summary proceedings hereafter instituted by the
                  Landlord against the Tenant in respect to the demised
                  premises. The words "re-enter" and "re-entry" as used in this
                  lease are not restricted to their technical legal meaning.

REMEDIES ARE               In the event of a breach or threatened breach by the
CUMULATIVE        Tenant of any of the covenants or provisions hereof, the
                  Landlord shall have the right of injunction and the right to
                  invoke any remedy allowed at law or in equity, as if re-entry,
                  summary proceedings and other remedies were not herein
                  provided for.

LANDLORD                   SEVENTH.-If the Tenant shall make default in the
MAY               performance of any covenant herein contained, the Landlord may
PERFORM           immediately, or at any time thereafter, without notice,
                  perform the same for the account of the Tenant. If a notice of
ADDITIONAL        mechanic's lien be filed against the demised premises or
RENT              against premises of which the demised premises are part, for,
                  or purporting to be for, labor or material alleged to have
                  been furnished, or to be furnished to or for the Tenant at the
                  demised premises, and if the Tenant shall fail to take such
                  action as shall cause such lien to be discharged within
                  fifteen days after the filing of such notice, the Landlord may
                  pay the amount of such lien or discharge the same by deposit
                  or by bonding proceedings, and in the event of such deposit or
                  bonding proceedings, the Landlord may require the lienor to
                  prosecute an appropriate action to enforce the lienor's claim.
                  In such case, the Landlord may pay any judgment recovered on
                  such claim. Any amount paid or expense incurred by the
                  Landlord as in this subdivision of this lease provided, and
                  any amount as to which the Tenant shall at any time be in
                  default for or in respect to the use of water, electric
                  current or sprinkler supervisory service, and any expense
                  incurred or sum of money paid by the Landlord by reason of the
                  failure of the Tenant to comply with any provision hereof, or
                  in defending any such action, shall be deemed to be
                  "additional rent" for the demised premises, and shall be due
                  and payable by the Tenant to the Landlord on the first day of
                  the next following month, or, at the option of the Landlord,
                  on the first day of any succeeding month. The receipt by the
                  Landlord of any instalment of the regular stipulated rent
                  hereunder or any of said "additional rent" shall not be a
                  waiver of any other "additional rent" then due.

AS TO                      EIGHTH.-The failure of the Landlord to insist, in any
WAIVERS           one or more instances upon a strict performance of any of the
                  covenants of this lease, or to exercise any option herein
                  contained, shall not be construed as a waiver or a
                  relinquishment for the future of such covenant or option, but
                  the same shall continue and remain in full force and effect.
                  The receipt by the Landlord of rent, with knowledge of the
                  breach of any covenant hereof, shall not be deemed a waiver of
                  such breach and no waiver by the Landlord of any provision
                  hereof shall be deemed to have been made unless expressed in
                  writing and signed by the Landlord. Even though the Landlord
                  shall consent to an assignment hereof no further assignment
                  shall be made without express consent in writing by the
                  Landlord.

COLLECTION                 NINTH.-If this lease be assigned, of if the demised
OF RENT           premises or any part thereof be underlet or occupied by
FROM OTHERS       anybody other than the Tenant the Landlord may collect rent
                  from the assignee, under-tenant or occupant, and apply the net
                  amount collected to the rent herein reserved, and no such
                  collection shall be deemed a waiver of the covenant herein
                  against assignment and underletting, or the acceptance of the
                  assignee, under-tenant or occupant as tenant, or a release of
                  the Tenant from the further performance by the Tenant of the
                  covenants herein contained on the part of the Tenant.

MORTGAGES                  TENTH.-This lease shall be subject and subordinate
                  at all times, to the lien of the mortgages now on the demised
                  premises, and to all advances made or hereafter to be made
                  upon the security thereof, and subject and subordinate to the
                  lien of any mortgage or mortgages which at any time may be
                  made a lien upon the premises. The Tenant will execute and
                  deliver such further instrument or instruments subordinating
                  this lease to the lien of any such mortgage or mortgages as
                  shall be desired by any mortgagee or proposed mortgagee. The
                  Tenant hereby appoints the Landlord the attorney-in-fact of
                  the Tenant, irrevocable, to execute and deliver any such
                  instrument or instruments for the Tenant.

IMPROVEMENTS               ELEVENTH.-All improvements made by the Tenant to or
                  upon the demised premises, except said trade fixtures, shall
                  when made, at once be deemed to be attached to the freehold,
                  and become the property of the Landlord, and at the end or
                  other expiration of the terms, shall be surrendered to the
                  Landlord in as good order and condition as they were when
                  installed, reasonable wear and damages by the elements
                  excepted.

NOTICES                    TWELFTH.-Any notice or demand which under the terms
                  of this lease or under any statute must or may be given or
                  made by the parties hereto shall be in writing and shall be
                  given or made by mailing the same by certified or registered
                  mail addressed to the respective parties at the addresses set
                  forth in this lease.

NO LIABILITY               THIRTEENTH.-The Landlord shall not be liable for any
                  failure of water supply or electrical current, sprinkler
                  damage, or failure of sprinkler service, nor for injury or
                  damage to person or property caused by the elements or by
                  other tenants or persons in said building, or resulting from
                  steam, gas, electricity, water, rain or snow, which may leak
                  or flow from any part of said buildings, or from the pipes,
                  appliances or plumbing works of the same, or from the street
                  or sub-surface, or from any other place, nor for interference
                  with light or other incorporeal hereditaments by anybody other
                  than the Landlord, or caused by operations by or for a
                  governmental authority in construction of any public or
                  quasi-public work, neither shall the Landlord be liable for
                  any latent defect in the building.

NO                         FOURTEENTH.-No diminution or abatement of rent, or
ABATEMENT         other compensation shall be claimed or allowed for
                  inconvenience or discomfort arising from the making of
                  repairs or improvements to the building or to its appliances,
                  nor for any space taken to comply with any law, ordinance or
                  order of a governmental authority. In respect to the various
                  "services," if any, herein expressly or impliedly agreed to be
                  furnished by the Landlord to the Tenant, it is agreed that
                  there shall be no diminution or abatement of the rent, or, any
                  other compensation, for interruption or curtailment of such
                  "service" when such interruption or curtailment shall be due
                  to accident, alterations or repairs desirable or necessary to
                  be made or to inability or difficulty in securing supplies or
                  labor for the maintenance of such "service" or to some other
                  cause, not gross negligence on the part of the Landlord. No
                  such interruption or curtailment of any such "service" shall
                  be deemed a constructive eviction. The Landlord shall not be
                  required to furnish, and the Tenant shall not be entitled to
                  receive, any of such "services" during any period wherein the
                  Tenant shall be in default in respect to the payment of rent.
                  Neither shall there be any abatement or diminution of rent
                  because of making of repairs, improvements or decorations to
                  the demised premises after the date above fixed for the
                  commencement of the term, it being understood that rent shall,
                  in any event, commence to run at such date so above fixed.

RULES, ETC.                FIFTEENTH.-The Landlord may prescribe and regulate
                  the placing of safes, machinery, quantities of merchandise and
                  other, things. The Landlord may also prescribe and regulate
                  which elevator and entrances shall be used by the Tenant's
                  employees, and for the Tenant's shipping. The Landlord may
                  make such other and further rules and regulations as, in the
                  Landlord's judgment, may from time to time be needful for
                  the safety, care or cleanliness of the building, and for the
                  preservation of good order therein. The Tenant and the
                  employees and agents of the Tenant will observe and conform to
                  all such rules and regulations.

SHORING OF                 SIXTEENTH.-In the event that air excavation shall be
WALLS             made for building or other purposes upon land adjacent to the
                  demised premises or shall be contemplated to be made, the
                  Tenant shall afford to the person or persons causing or to
                  cause such excavation, license to enter upon the demised
                  premises for the purpose of doing such work as said person or
                  persons shall deem to be necessary to preserve the wall or
                  walls, structure or structures upon the demised premises from
                  injury and to support the same by proper foundations.

VAULT SPACE                SEVENTEENTH.-No vaults or space not within the
                  property line of the building are leased hereunder. Landlord
                  makes no representation as to the location of the property
                  line of the building. Such vaults or space as Tenant may be
                  permitted to use or occupy are to be used or occupied under a
                  revocable license and if such license be revoked by the
                  Landlord as to the use of part or all of the vaults or space
                  Landlord shall not be subject to any liability. Tenant shall
                  not be entitled to any compensation or reduction in rent nor
                  shall this be deemed constructive or actual eviction. Any tax,
                  fee or charge of municipal or other authorities for such
                  vaults or space shall be paid by the Tenant for the period of
                  the Tenant's use or occupancy thereof.

ENTRY                      EIGHTEENTH.-That during seven months prior to the
                  expiration of the term hereby granted, applicants shall be
                  admitted at all reasonable hours of the day to view the
                  premises until rented; and the Landlord and the Landlord's
                  agents shall be permitted at any time during the terms to
                  visit and examine them at any reasonable hour of the day, and
                  workmen may enter at any time, when authorized by the Landlord
                  or the Landlord's agents, to make or facilitate repairs in any
                  part of the building; and if the said Tenant shall not be
                  personally present to open and permit an entry into said
                  premises at any time, when for any reason an entry therein
                  shall be necessary or permissible hereunder, the Landlord or
                  the Landlord's agents may forcibly enter the same without
                  rendering the Landlord or such agents liable to any claim or
                  cause of action for damages by reason thereof (if during such
                  entry the Landlord shall accord reasonable care to the
                  Tenant's property) and without in any manner affecting the
                  obligations and covenants of this lease; it is, however,
                  expressly understood that the right and authority hereby
                  reserved, does not impose, nor does the Landlord assume, by
                  reason thereof, any responsibility or liability whatsoever for
                  the care or supervision of said premises, or any of the pipes,
                  fixtures, appliances or appurtenances therein contained or
                  therewith in any manner connected.

NO REPRE-                  NINETEENTH.-The Landlord has made no representations
SENTATIONS        or promises in respect to said building or to the demised
                  premises except those contained herein, and those, if any,
                  contained in some written communication to the Tenant, signed
                  by the Landlord. This instrument may not be changed, modified,
                  discharged or terminated orally.

ATTORNEY'S                 TWENTIETH.-If the Tenant shall at any time be in
FEES              default hereunder, and if the Landlord shall institute an
                  action or summary proceeding against the Tenant based upon
                  such default, then the Tenant will reimburse the Landlord for
                  the expense of attorneys' fees and disbursements thereby
                  incurred by the Landlord, so far as the same are reasonable in
                  amount. Also so long as the Tenant shall be a tenant hereunder
                  the amount of such expenses shall be deemed to be "additional
                  rent" hereunder and shall be due from the Tenant to the
                  Landlord on the first day of the month following the incurring
                  of such respective expenses.

POSSESSION                 TWENTY-FIRST.-Landlord shall not be liable for
                  failure to give possession of the premises upon commencement
                  date by reason of the fact that premises are not ready for
                  occupancy, or due to a prior Tenant wrongfully holding over
                  for any other person wrongfully in possession or for any other
                  reason: in such event the term shall not commence until
                  possession is given or is available but the term herein shall
                  not be extended.
<PAGE>

                           THE TENANT FURTHER COVENANTS:

IF A FIRST                 TWENTY-SECOND.--If the demised premises or any part
FLOOR             thereof consist of a store or of a first floor, or of any
                  part thereof, the Tenant will keep the sidewalk and curb in
                  front thereof clean at all times and free from snow and ice,
                  and will keep insured in favor of the Landlord, all plate
                  glass therein and furnish the Landlord with policies of
                  insurance covering the same.

INCREASED                  TWENTY-THIRD.-If by reason of the conduct upon the
FIRE              demised premises of a business not herein permitted, or if by
INSURANCE         reason of the improper or careless conduct of any business
RATE              upon or use of the demised premises, the fire insurance rate
                  shall at any time be higher than it otherwise would be, then
                  the Tenant will reimburse the Landlord, as additional rent
                  hereunder, for that part of all fire insurance premiums
                  hereafter paid out by the Landlord which shall have been
                  charged because of the conduct of such business not so
                  permitted, or because of the improper or careless conduct of
                  any business upon or use of the demised premises, and will
                  make such reimbursement upon the first day of the month
                  following such outlay by the Landlord; but this covenant shall
                  not apply to a premium for any period beyond the expiration
                  date of this lease, first above specified. In any action or
                  proceeding wherein the Landlord and Tenant are parties, a
                  schedule or "make up" of rate for the building on the demised
                  premises, purporting to have been issued by New York Fire
                  Insurance Exchange, or other body making fire insurance rates
                  for the insured premises, shall be prima facie evidence of the
                  facts therein stated and of the several items and charges
                  included in the fire insurance rate then applicable to the
                  demised premises.

WATER RENT                 TWENTY-FOURTH.-If a separate water meter be installed
                  for the demised premises, or any part thereof, the Tenant will
SEWER             keep the same in repair and pay the charges made by the
                  municipality or water supply company for or in respect to the
                  consumption of water, as and when bills therefor are rendered.
                  If the demised premises, or any part thereof, be supplied with
                  water through a meter which supplies other premises, the
                  Tenant will pay to the Landlord, as and when bills are
                  rendered therefor, the Tenant's proportionate part of all
                  charges which the municipality or water supply company shall
                  make for all water consumed through said meter, as indicated
                  by said meter. Such proportionate part shall be fixed by
                  apportioning the respective charge according to floor area
                  against all of the rentable floor area in the building
                  (exclusive of the basement) which shall have been occupied
                  during the period of the respective charges, taking into
                  account the period that each part of such area was occupied.
                  Tenant agrees to pay as additional rent the Tenant's
                  proportionate part, determined as aforesaid, of the sewer rent
                  or charge imposed or assessed upon the building of which the
                  premises are a part.

ELECTRIC                   TWENTY-FIFTH.-That the Tenant will purchase from the
CURRENT           Landlord, if the Landlord shall so desire, all electric
                  current that the Tenant requires at the demised premises, and
                  will pay the Landlord for the same, as the amount of
                  consumption shall be indicated by the meter furnished
                  therefor. The price for said current shall be the same as that
                  charged for consumption similar to that of the Tenant by the
                  company supplying electricity in the same community. Payments
                  shall be due as and when bills shall be rendered. The Tenant
                  shall comply with like rules, regulations and contract
                  provisions as those prescribed by said company for a
                  consumption similar to that of the Tenant.

SPRINKLER                  TWENTY-SIXTH.-If there now is or shall be installed
SYSTEM            in said building a "sprinkler system" the Tenant agrees to
                  keep the appliances thereto in the demised premises in repair
                  and good working condition, and if the New York Board of Fire
                  Underwriters or the New York Fire Insurance Exchange or any
                  bureau, department or official of the State or local
                  government requires or recommends that any changes,
                  modifications, alterations or additional sprinkler heads or
                  other equipment be made or supplied by reason of the Tenant's
                  business, or the location of partitions, trade fixtures, or
                  other contents of the demised premises, or if such changes,
                  modifications, alterations, additional sprinkler heads or
                  other equipment in the demised premises are necessary to
                  prevent the imposition of a penalty or charge against the full
                  allowance for a sprinkler system in the fire insurance rate as
                  fixed by said Exchange, or by any Fire Insurance Company the
                  Tenant will at the Tenant's own expense, promptly make and
                  supply such changes, modifications, alterations, additional
                  sprinkler heads or other equipment. As additional rent
                  hereunder the Tenant will pay to the Landlord annually in
                  advance throughout the term $__________, toward the contract
                  price for sprinkler supervisory service.

SECURITY                   TWENTY-SEVENTH.-The sum of $__________ Dollars is
                  deposited by the Tenant herein with the Landlord herein as
                  security for the faithful performance of all the covenants and
                  conditions of the lease by the said Tenant. If the Tenant
                  faithfully performs all the covenants and conditions on his
                  part to be performed, then the sum deposited shall be returned
                  to said Tenant.

NUISANCE                   TWENTY-EIGHTH.-This lease is granted and accepted on
                  the especially understood and agreed condition that the Tenant
                  will conduct its business in such a manner, both as regards
                  noise and kindred nuisances, as will in no wise interfere
                  with, annoy or disturb any other tenants in the conduct of
                  their several businesses, or the landlord in the management of
                  the building; under penalty of forfeiture of this lease and
                  consequential damages.

BROKERS                    TWENTY-NINTH.-The Landlord hereby recognizes
COMMISSIONS       ___________ as the broker who negotiated and consummated this
                  lease with the Tenant herein, and agrees that if, as, and when
                  the Tenant exercises the option, if any contained herein to
                  renew this lease, or fails to exercise the option, if any,
                  contained therein to cancel this lease, the Landlord will pay
                  to said broker a further commission in accordance with the
                  rules and commission rates of the Real Estate Board in the
                  community. A sale, transfer, or other disposition of the
                  Landlord's interest in said lease shall not operate to defeat
                  the Landlord's obligation to pay the said commission to the
                  said broker. The Tenant herein hereby represents to the
                  Landlord that the said broker is the sole and only broker who
                  negotiated and consummated this lease with the Tenant.

WINDOW                     THIRTIETH.-The Tenant agrees that it will not
CLEANING          require, permit, suffer, nor allow the cleaning of any window,
                  or windows, in the demised premises from the outside (within
                  the meaning of Section 202 of the Labor Law) unless the
                  equipment and safety devices required by law, ordinance,
                  regulation or rule, including, without limitation, Section 202
                  of the New York Labor Law, are provided and used, and unless
                  the rules, or any supplemental rules of the Industrial Board
                  of the State of New York are fully complied with; and the
                  Tenant hereby agrees to indemnify the Landlord, Owner, Agent,
                  Manager and/or Superintendent, as a result of the Tenant's
                  requiring, permitting, suffering or allowing any window, or
                  windows in the demised premises to be cleaned from the outside
                  in violation of the requirements of the aforesaid laws,
                  ordinances, regulations and/or rules.

VALIDITY                   THIRTY-FIRST.-The invalidity or unenforceability of
                  any provision of this lease shall in no way affect the
                  validity or enforceability of any other provision hereof.

EXECUTION                  THIRTY-SECOND.-In order to avoid delay, this lease
& DELIVERY        has been prepared and submitted to the Tenant for signature
OF LEASE          with the understanding that it shall not bind the Landlord
                  unless and until it is executed and delivered by the Landlord.

EXTERIOR OF                THIRTY-THIRD.-The Tenant will keep clean and polished
PREMISES          all metal, trim, marble and stonework which are a part of the
                  exterior of the premises, using such materials and methods as
                  the Landlord may direct, and if the Tenant shall fail to
                  comply with the provisions of this paragraph, the Landlord may
                  cause such work to be done at the expense of the Tenant.

PLATE GLASS                THIRTY-FOURTH.-The Landlord shall replace at the
                  expense of the Tenant any and all broken glass in the
                  skylights, doors and walls in and about the demised premises.
                  The Landlord may insure and keep insured all plate glass in
                  the skylights, doors and walls in the demised premises, for
                  and in the name of the Landlord and bills for the premiums
                  therefor shall be rendered by the Landlord to the Tenant at
                  such times as the Landlord may elect, and shall be due from
                  and payable by the Tenant when rendered, and the amount
                  thereof shall be deemed to be, and shall be paid as,
                  additional rent.

WAR                        THIRTY-FIFTH.-This lease and the obligation of Tenant
EMERGENCY         to pay rent hereunder and perform all of the other covenants
                  and agreements hereunder on part of Tenant to be performed
                  shall in nowise be affected, impaired or excused because
                  Landlord is unable to supply or is delayed in supplying any
                  service expressly or impliedly to be supplied or is unable to
                  make, or is delayed in making any repairs, additions,
                  alterations or decorations or is unable to supply or is
                  delayed in supplying any equipment or fixtures if Landlord is
                  prevented or delayed from so doing by reason of governmental
                  preemption in connection with a National Emergency declared by
                  the President of the United States or in connection with any
                  rule, order or regulation of any department or subdivision
                  thereof of any government agency or by reason of the
                  conditions of supply and demand which have been or are
                  affected by war or other emergency.
<PAGE>

                           THE LANDLORD COVENANTS

QUIET                      FIRST.-That if and so long as the Tenant pays the
POSSESSION        rent and "additional rent" reserved hereby, and performs and
                  observes the covenants and provisions hereof, the Tenant shall
                  quietly enjoy the demised premises, subject, however, to the
                  terms of this lease, and to the mortgages above mentioned,
                  provided however, that this covenant shall be conditioned upon
                  the retention of title to the premises by Landlord.

ELEVATOR                   SECOND.-Subject to the provisions of Paragraph
                  "Fourteenth" above the Landlord will furnish the following
HEAT              respective services: (a) Elevator service, if the building
                  shall contain an elevator or elevators, on all days except
                  Sundays and holidays, from __________ A.M. to __________ P.M.
                  and on Saturdays from __________ A.M. to __________ P.M.; (b)
                  Heat, during the same hours on the same days in the cold
                  season in each year.

                           And it is mutually understood and agreed that the
                  covenants and agreements contained in the within lease shall
                  be binding upon the parties hereto and upon their respective
                  successors, heirs, executors and administrators.

                           IN WITNESS WHEREOF, the Landlord and Tenant have
                  respectively signed and sealed these presents the day and year
                  first above written.

                                           /s/ Mark Siegel                [L.S.]
                                           -------------------------------
                                                                        Landlord

IN PRESENSE OF:

                                           /s/ Ira Levy                   [L.S.]
                                           -------------------------------
                                                                          Tenant

<PAGE>

                  ACKNOWLEDGMENT IN NEW YORK STATE (RPL 309-a)

State of New York, County of                              ss.:

On                                before me, the undersigned,
personally appeared

personally known to me or proved to me on the basis of satisfactory evidence to
be the individual(s) whose name(s) is (are) subscribed to the within instrument
and acknowledged to me that he/she/they executed the same in his/her/their
capacity(ies), and that by his/her/their signature(s) on the instrument, the
individual(s), or the person upon behalf of which the individual(s) acted,
executed the instrument.

                      ----------------------------------------------------------
                      (signature and office of individual taking acknowledgment)

                ACKNOWLEDGMENT OUTSIDE NEW YORK STATE (RPL 309-b)

State of                  County of                       ss.:

On                                before me, the undersigned,
personally appeared

personally known to me or proved to me on the basis of satisfactory evidence to
be the individual(s) whose name(s) is (are) subscribed to the within instrument
and acknowledged to me that he/she/they executed the same in his/her/their
capacity(ies), and that by his/her/their signature(s) on the instrument, the
individual(s), or the person upon behalf of which the individual(s) acted,
executed the instrument, and that such individual made such appearance before
the undersigned in

(insert city or political subdivision and state or county or other place
acknowledgment taken)

                      ----------------------------------------------------------
                      (signature and office of individual taking acknowledgment)
                        ACKNOWLEDGMENT BY SUBSCRIBING WITNESS(ES)

State of                        } ss:
County of                       }

On                                before me, the undersigned,
personally appeared

the subscribing witness(es) to the foregoing instrument, with whom I am
personally acquainted, who, being by me duly sworn, did depose and say that
he/she/they reside(s) in (if the place of residence is in a city include the
street and street number, if any, thereof);

that he/she/they know(s)

to be the individual(s) described in and who executed the foregoing instrument;
that said subscribing witness(es) was (were) present and saw said

execute the same; and that said witness(es) at the same time subscribed
his/her/their name(s) as a witness(es) thereto.
([ ] if taken outside New York State insert city or political subdivision and
state or country or other place acknowledgment taken And that said subscribing
witness(es) made such appearance before the undersigned in

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

                                                                               )
-----------------------------------   -----------------------------------------

                     -----------------------------------------------------------
                     (signature and office of individual taking acknowledgement)

================================================================================
<PAGE>

BUILDING:       Great American Realty of
                95 Jefryn Boulevard, LLC
                95 Jefryn Blvd., Deer Park, NY 11729

PREMISES:
                -------------------------------------

================================================================================

                            GREAT AMERICAN REALTY
                            OF 95 JEFRYN BLVD., LLC
                            2131 NEWBRIDGE ROAD
                            BELLMORE, NY 11710
                                                        Landlord

                                       to

                            SURGE COMPONENTS
                            95 JEFRYN BLVD.
                            DEER PARK, NY 11710
                                                        Tenant

================================================================================

                                     LEASE

================================================================================

================================================================================

                                    GUARANTY

         In consideration of the letting of the premises within mentioned to the
Tenant within named, and of the sum of One Dollar, to the undersigned in hand
paid by the Landlord within named, the undersigned hereby guarantees to the
Landlord and to the heirs, successors and/or assigns of the Landlord, the
payment by the Tenant of the rent, within provided for, and the performance by
the Tenant of all of the provisions of the within lease. Notice of all defaults
is waived, and consent is hereby given to all extensions of time that any
Landlord may grant.

Dated,

State of New York, County of           ss.: ACKNOWLEDGMENT RPL309-a (Do not use
outside New York State)

On                           before me, the undersigned, personally appeared

personally known to me or proved to me on the basis of satisfactory evidence to
be the individual(s) whose name(s) is (are) subscribed to the within instrument
and acknowledged to me that he/she/they executed the same in his/her/their
capacity(ies), and that by his/her/their signature(s) on the instrument, the
individual(s), or the person upon behalf of which the individual(s) acted,
executed the instrument.

                      ----------------------------------------------------------
                      (signature and office of individual taking acknowledgment)

RIDER TO LEASE DATED THE 1ST DAY OF OCTOBER, 2000, BETWEEN GREAT AMERICAN REALTY
OF 95 JEFRYN BLVD., LLC, LANDLORD AND SURGE COMPONENTS, AS TENANT.

36TH. THAT THE TENANT SHALL PAY THE ANNUAL RENT OF:

         1) $87,187.56 FOR THE FIRST YEAR OF THIS LEASE COMMENCING OCTOBER 1,
2000 THROUGH SEPTEMBER 31, 2001 SAID RENT TO BE PAID IN EQUAL MONTHLY PAYMENTS
IN ADVANCE ON THE FIRST DAY OF EACH AND EVERY MONTH IN THE SUM OF $7,265.63

         2) $89,803.20 FOR THE SECOND YEAR OF THIS LEASE COMMENCING OCTOBER 1,
2001 THROUGH SEPTEMBER 31, 2002 SAID RENT TO BE PAID IN EQUAL MONTHLY PAYMENTS
IN ADVANCE ON THE FIRST DAY OF EACH AND EVERY MONTH IN THE SUM OF $7,483.60

         3) $92,497.32 FOR THE THIRD YEAR OF THIS LEASE COMMENCING OCTOBER 1,
2002 THROUGH SEPTEMBER 31, 2003 SAID RENT TO BE PAID IN EQUAL MONTHLY PAYMENTS
IN ADVANCE ON THE FIRST DAY OF EACH AND EVERY MONTH IN THE SUM OF $7,708.11

         4) $95,272.20 FOR THE FOURTH YEAR OF THIS LEASE COMMENCING OCTOBER 1,
2003 THROUGH SEPTEMBER 31, 2004 SAID RENT TO BE PAID IN EQUAL MONTHLY PAYMENTS
IN ADVANCE ON THE FIRST DAY OF EACH AND EVERY MONTH IN THE SUM OF $7,939.35

         5) $98,130.36 FOR THE FIFTH YEAR OF THIS LEASE COMMENCING OCTOBER 1,
2004 THROUGH SEPTEMBER 31, 2005 SAID RENT TO BE PAID IN EQUAL MONTHLY PAYMENTS
IN ADVANCE ON THE FIRST DAY OF EACH AND EVERY MONTH IN THE SUM OF $8,177.53

         6) $101,074.32 FOR THE SIXTH YEAR OF THIS LEASE COMMENCING OCTOBER 1,
2005 THROUGH SEPTEMBER 31, 2006 SAID RENT TO BE PAID IN EQUAL MONTHLY PAYMENTS
IN ADVANCE ON THE FIRST DAY OF EACH AND EVERY MONTH IN THE SUM OF $8,422.86

         7) $104,106.60 FOR THE SEVENTH YEAR OF THIS LEASE COMMENCING OCTOBER 1,
2006 THROUGH SEPTEMBER 31, 2007 SAID RENT TO BE PAID IN EQUAL MONTHLY PAYMENTS
IN ADVANCE ON THE FIRST DAY OF EACH AND EVERY MONTH IN THE SUM OF $8,675.55

         8) $107,229.84 FOR THE EIGHTH YEAR OF THIS LEASE COMMENCING OCTOBER 1,
2007 THROUGH SEPTEMBER 31, 2008 SAID RENT TO BE PAID IN EQUAL MONTHLY PAYMENTS
IN ADVANCE ON THE FIRST DAY OF EACH AND EVERY MONTH IN THE SUM OF $8,935.82

         9) $110,446.68 FOR THE NINTH YEAR OF THIS LEASE COMMENCING OCTOBER 1,
2008 THROUGH SEPTEMBER 31, 2009 SAID RENT TO BE PAID IN EQUAL MONTHLY PAYMENTS
IN ADVANCE ON THE FIRST DAY OF EACH AND EVERY MONTH IN THE SUM OF $9,203.89

         10) $113,760.12 FOR THE TENTH YEAR OF THIS LEASE COMMENCING OCTOBER 1,
2009 THROUGH SEPTEMBER 31, 2010 SAID RENT TO BE PAID IN EQUAL MONTHLY PAYMENTS
IN ADVANCE ON THE FIRST DAY OF EACH AND EVERY MONTH IN THE SUM OF $9,480.01

         10 YEAR LEASE, 3% INCREASES.

         37TH. THE TENANT AGREES AT ITS OWN COST AND EXPENSE TO PAY FOR AND
PROVIDE ALL HEAT, AIR CONDITIONING, ELECTRICITY, GAS WATER, FUEL, ALL UTILITIES,
TRASH REMOVAL AND SERVICES USED AND CONSUMED BY IT AND TO KEEP THE DEMISED
PREMISES IN A NEAT AND ORDERLY FASHION BEING THE UNDERSTANDING AND INTENTION OR
THE PARTIES HERETO THAT THE TENANT HIRES THE PREMISES AND THE LANDLORD RENTS THE
PREMISES TO THE TENANT WITHOUT ANY SERVICE OF ANY KIND WHATSOEVER. IN THE EVENT

<PAGE>
THAT THE PREMISES HAS A SEPARATE SEPTIC TANK OR CESSPOOL THE TENANT SHALL
MAINTAIN, REPAIR OF REPLACE THE SAME AT TENANT'S OWN COST AND EXPENSE.

         38TH. THE TENANT AT ITS OWN COST AND EXPENSE AGREES TO PROVIDE AND TO
KEEP IN FULL FORCE AND EFFECT DURING THE TERMS OF THIS LEASE FOR THE BENEFIT OF
THE LANDLORD, GENERAL LIABILITY INSURANCE IN STANDARD FROM PROTECTING THE
LANDLORD AGAINST AND LIABILITY WHATSOEVER OCCASIONED BY ACCIDENT IN OR ABOUT THE
DEMISED PREMISES. THE LANDLORD SHALL BE NAMED AS AN ADDITIONAL INSURED
THEREUNDER AND SHALL BE PROTECTED AGAINST ALL LIABILITY OCCASIONED BY ANY
OCCURRENCE INSURED AGAINST. SUCH POLICY OR POLICIES SHALL COVER THE LEASED
PREMISES AND SHALL PROVIDE FOR ALL LEASE THIRTY (30) DAY'S NOTICE TO THE
LANDLORD BEFORE CANCELLATION OR NON-RENEWAL. A CERTIFICATION THEREOF SHALL BE
DELIVERED TO THE LANDLORD. SAID INSURANCE POLICY(S) SHALL PROVIDE FOR THE
FOLLOWING MINIMUM COVERAGES: $1,000,000.00 COMBINED SINGLE LIMITS (CSL) COVERAGE
FOR ANY ONE OCCURRENCE. IN THE EVENT THE TENANT FAILS TO EFFECT SUCH INSURANCE,
OR FAILS TO MAINTAIN THE SAME, THE LANDLORD MAY ELECT TO OBTAIN THE SAME AND ADD
THE COST THEREOF TO THE INSTALLMENT OF RENT FOR THE MONTH NEXT ENSURING AND THE
AMOUNT THEREOF SHALL BE DEEMED ADDITIONAL RENT.

         39TH. THE TENANT SHALL MAINTAIN INSURANCE COVERING DAMAGE TO ITS OWN
PERSONAL PROPERTY SITUATED UPON THE PREMISES, AS WELL AS DAMAGE TO THE PERSONAL
PROPERTY UPON THE PREMISES BELONGING TO THIRD PERSONS, AND WILL UNDER ANY
CIRCUMSTANCES, HOLD THE LANDLORD HARMLESS AND FREE FROM ANY CLAIM FOR DAMAGE TO
SUPPLIES, EQUIPMENT, OR OTHER GOODS UPON THE PREMISES.

         40TH. TENANT SHALL, AT ITS OWN COST AND EXPENSE, PROMPTLY REPLACE ANY
BROKEN GLASS IN THE PREMISES.

         41ST. ALL OF THE INSURANCE POLICIES PROVIDED FOR IN THIS LEASE SHALL BE
DELIVERED TO THE LANDLORD WITHIN FIFTEEN (15) DAYS AFTER THE COMMENCEMENT OF THE
TERMS OF THIS AGREEMENT. UPON THE FAILURE OF THE TENANT TO DO SO DEPOSIT ANY OF
SAID POLICIES, THE LANDLORD SHALL HAVE THE PRIVILEGE TO PROCURE SAID INSURANCE
ON ITS OWN APPLICATION THEREFORE, AND THE AMOUNT OF THE PREMIUM, IF PAID BY THE
LANDLORD, SHALL BE DUE AND PAYABLE WITH THE RENT INSTALLMENT NEXT DUE AND SHALL
BE CONSIDERED AS ADDITIONAL RENT RESERVED HEREUNDER, COLLECTIBLE WITH THE SAME
REMEDIES AS IF ORIGINALLY RESERVED AS RENT HEREUNDER.

         42ND . THE TENANT SHALL TAKE GOOD CARE OF THE DEMISED PREMISES AND
SHALL AT TENANT'S OWN COST AND EXPENSE MAKE ALL REPAIRS AND BE SOLELY
RESPONSIBLE AT ITS OWN COST AND EXPENSE FOR THE PROPER MAINTENANCE, REPAIR AND
REPLACEMENT OF THE FIXTURES, APPLIANCES, SERVICES AND UTILITIES IN THE DEMISED
PREMISES INCLUDING BUT NOT LIMITED TO THE PLUMBING, HEATING, ELECTRICAL,
SPRINKLER, AIR CONDITIONING AND THE GAS, WATER AND ELECTRIC METERS AND
INSTALLATIONS PERTAINING THERETO, AND VENT AND CHIMNEY EQUIPMENT AND
INSTALLATIONS AND ALL STRUCTURAL PARTS OF THE DEMISED PREMISES TO WHICH SUCH
EQUIPMENT AND INSTALLATIONS ARE ATTACHED THROUGH, IT RESPONSIBLE FOR EXTERIOR
STRUCTURAL REPAIRS OF THE BUILDING AND ROOF ONLY.

         43RD. THE TENANT SHALL MAINTAIN THE DEMISED PREMISES IN A CLEAN AND
ORDERLY FASHION. IN THE EVENT OF THE TENANT'S FAILURE TO KEEP THE PREMISES IN A
CLEAN AND ORDERLY FASHION, BOTH INTERIOR AND EXTERIOR, THE LANDLORD SHALL HAVE
THE RIGHT, UPON TWENTY (20) DAYS WRITTEN NOTICE AND DEMAND TO THE TENANT, TO
MAKE ANY NECESSARY REPAIRS OR CAUSE THE PREMISES TO BE CLEANED AT THE EXPENSE OF
THE TENANT, AND THE AMOUNT SO EXPENDED BY THE LANDLORD SHALL CONSTITUTE
ADDITIONAL RENT TO BE PAID BY TENANT TO THE LANDLORD, TOGETHER WITH THE NEXT
ENSUING RENT PAYMENT.
<PAGE>

         44TH. THE TENANT SHALL HAVE THE RIGHT TO MAKE INTERIOR, NONSTRUCTURAL
CHANGES, BUT THE SAME SHALL BE MADE ONLY WITH THE CONSENT OF THE LANDLORD, WHICH
CONSENT SHALL NOT BE UNREASONABLY WITHHELD. ONLY FIXTURES, EQUIPMENT AND
APPLIANCES WHICH ARE SERVICEABLE AND IN GOOD CONDITION SHALL BE INSTALLED BY OR
ON BEHALF OF TENANT AND SAME SHALL BE INSTALLED IN A GOOD WORKMANLIKE MANNER.
ANY PAINTING OR DECORATING NECESSARY OR REQUIRED AT ANY TIME TO BE DONE IN THE
DEMISED PREMISES SHALL BE DONE BY THE TENANT AT ITS OWN COST AND EXPENSE.
WHENEVER REQUIRED TENANT SHALL PROVIDE LANDLORD WITH A CERTIFICATE OF ELECTRICAL
INSPECTION AND APPROVAL FROM THE NEW YORK BOARD OF FIRE UNDERWRITERS, OR SUCH
OTHER FIRE UNDERWRITERS AS MAY BE OPERATIVE IN THE COUNTY OF NASSAU. IF TENANT
MAKES ANY INTERIOR ALTERATIONS OR INSTALLATIONS, THE SAME SHALL BE DONE AT
TENANT'S SOLE COST AND EXPENSE IN ACCORDANCE WITH THE LAWS AND ORDINANCES
APPLYING TO THE SAME. ANY ALTERATIONS, INSTALLATIONS ADDITIONS AND IMPROVEMENTS
MADE AND INSTALLED BY TENANT IN THE DEMISED PREMISES, SHALL IMMEDIATELY BECOME
AND BE THE PROPERTY OF THE LANDLORD WITHOUT PAYMENT THEREFORE AND SHALL REMAIN
UPON AND BE SURRENDERED WITH THE DEMISED PREMISES IN GOOD WORKING ORDER
REASONABLE WEAR AND TEAR EXCEPTED. TENANT SHALL, AT ITS OWN COST AND EXPENSE,
OBTAIN THE NECESSARY PERMITS, CERTIFICATES OF OCCUPANCY AND/OR CERTIFICATES OF
COMPLETION FOR ANY AND ALL IMPROVEMENTS MADE TO THE SUBJECT PREMISES BY THE
TENANT, IN THE EVENT SUCH ARE REQUIRED BY THE APPROPRIATE MUNICIPAL AUTHORITIES.
THE LANDLORD SHALL NOT UNREASONABLY WITHHOLD CONSENT TO THE EXECUTION OF ANY
DOCUMENT NECESSARY THEREFORE. PRIOR TO THE COMMENCEMENT OF ANY SUCH IMPROVEMENT
THE TENANT SHALL FURNISH TO THE LANDLORD THE CONTRACTOR'S CERTIFICATES OF
WORKER'S COMPENSATION INSURANCE AND GENERAL LIABILITY INSURANCE IN AN AMOUNT OF
AT LEAST $1,000,000.00 NAMING THE LANDLORD AS AN ADDITIONAL INSURED. IN THE
EVENT THE TENANT FAILS TO COMPLY HEREWITH, THE LANDLORD SHALL DO SO AT THE
EXPENSE OF THE TENANT,. WHICH EXPENSE SHALL INCLUDE ANY AND ALL INSURANCE
PREMIUMS, COSTS TO LEGALIZE THE SAID ADDITIONAL(S) AND THE LANDLORD'S ATTORNEY'S
FEES, ALL OF THE FOREGOING BEING DEEMED AS ADDITIONAL RENT HEREUNDER. IF ANY
MECHANIC'S LIEN OR LIENS ARE FILED AGAINST THE SUBJECT PREMISES FOR WORK DONE BY
OR AT THE REQUEST OF THE TENANT OR FOR MATERIALS FURNISHED IN CONNECTION
THEREWITH, THE TENANT SHALL, WITHIN THIRTY (30) DAYS AFTER THE FILING OF THE
SAID LIEN, AND AT THE TENANT'S SOLE COST AND EXPENSE, CAUSE THE SAME TO BE
REMOVED AND DISCHARGED BY PAYMENT, COURT ORDER OR BOND AS IS PROVIDED FOR BY
LAW. IN THE EVENT THE TENANT FAILS TO SO CAUSE THE LIEN(S) TO BE DISCHARGED, THE
LANDLORD MAY ELECT TO CANCEL THIS LEASE AND/OR CAUSE THE SAID LIENS TO BE PAID
AND THE COSTS THEREOF, INCLUDING ALL REASONABLE ATTORNEYS FEES CONNECTED
THEREWITH, SHALL BE DEEMED AS ADDITIONAL RENT FOR WHICH THE TENANT SHALL
IMMEDIATELY BE RESPONSIBLE. TENANT WILL IN ALL RESPECTS INDEMNIFY AND HOLD THE
LANDLORD HARMLESS FROM ANY CLAIM BY ANY SUBCONTRACTOR, MATERIALMAN OR LABORERS
ENGAGED OR HIRED BY IT, AND FURTHER SPECIFICALLY AGREES THAT NO ALTERATIONS,
INTERIOR OR EXTERIOR SHALL BE UNDERTAKEN BY THE LANDLORD WHICH SHALL NOT BE
UNREASONABLY WITHHELD.
<PAGE>

         45TH. ALL ALTERATIONS TO THE PROPERTY MADE OR INSTALLED IN SUCH A
MANNER THAT THEIR REMOVAL WOULD CAUSE INJURY TO THE PROPERTY SHALL BE THE
PROPERTY OF THE LANDLORD, AT THE OPTION OF THE LANDLORD, AND MAY NOT BE REMOVED
WITHOUT THE CONSENT OF THE LANDLORD, TRADE FIXTURES EXCEPTED. TRADE FIXTURES
SHALL BE DEEMED THE PROPERTY OF THE TENANT AND MAY BE REMOVED BY THE TENANT
PROVIDED THAT ALL INJURY TO THE PROPERTY RESULTING THERE FROM SHALL BE REPAIRED
AT THE EXPENSE OF THE TENANT. SHOULD THE TENANT VACATE THE SUBJECT PREMISES FOR
ANY REASON WHATSOEVER, ALL PROPERTY LEFT IN THE SUBJECT PREMISES SHALL, AT THE
OPTION OF THE LANDLORD, BE DEEMED ABANDONED BY THE SAID TENANT AND SHALL BECOME
THE PROPERTY OF THE LANDLORD.

         46TH. IF THE TENANT SHALL AT ANY TIME BE IN DEFAULT HEREUNDER AND IF
THE LANDLORD SHALL INSTITUTE ANY ACTION OR SUMMARY PROCEEDING OR SHALL OTHERWISE
INCUR EXPENSE FOR LEGAL FEES AS A CONSEQUENCE OF TENANT'S DEFAULT OR DELAY IN
MAKING PAYMENT OR IN COMPLYING WITH ANY TERM OR CONDITION OF THIS LEASE, THEN
THE TENANT WILL BE LIABLE TO AND WILL REIMBURSE THE LANDLORD FOR SUCH REASONABLE
EXPENSE OF ATTORNEY'S FEES AND DISBURSEMENTS THUS INCURRED BY LANDLORD. THE
AMOUNT OF SUCH EXPENSES SHALL BE DEEMED TO BE "ADDITIONAL RENT" HEREUNDER AND
SHALL BE DUE FROM THE TENANT TO THE LANDLORD ON THE FIRST DAY OF THE MONTH
FOLLOWING THE INCURRING OF SUCH RESPECTIVE EXPENSES OR FOLLOWING DEMAND
THEREFORE BY THE LANDLORD. IF THE TENANT SHALL ALLEGE OR CLAIM ANY DAMAGES
RESULTING FROM ANY BREACH OR ALLEGED BREACH BY THE LANDLORD UNDER THE TERMS OF
THIS LEASE OR ANY CLAIM OR ANY KIND WHATSOEVER ARISING IN FAVOR IF THE TENANT
AGAINST THE LANDLORD, THE TENANT AGREES THAT SUCH CLAIM SHALL NOT BE ASSERTED
AND MAY NOT BE ASSERTED AGAINST THE LANDLORD EITHER AS A COUNTERCLAIM, SET OFF
OR DEFENSE IN ANY ACTION OR PROCEEDING BROUGHT BY THE LANDLORD AGAINST THE
TENANT FOR THE NON-PAYMENT OF RENT OR RECOVERY OF POSSESSION OF THE DEMISED
PREMISES. SUCH CLAIM BY THE TENANT AGAINST THE LANDLORD SHALL ONLY BE ENFORCED,
PROSECUTED OR MAINTAINED BY A SEPARATED ACTION OR PROCEEDING INSTITUTED BY THE
TENANT AGAINST THE LANDLORD, AND NOT TO BE CONSOLIDATED WITH ANY ACTION OR
PROCEEDING BROUGHT BY LANDLORD TO RECOVER RENT OR TO RECOVER POSSESSION OR THE
DEMISED PREMISES.

         47TH. ANY NOTICE BY EITHER PARTY TO THE OTHER SHALL BE DEEMED DULY
GIVEN ONLY IF IN WRITING AND IF DELIVERED EITHER PERSONALLY OR IF SUCH NOTICE BE
POSTED BY REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED, ADDRESSED (A)
IF TO THE TENANT AT THE DEMISED PREMISES, AND (B) IF TO THE LANDLORD AT ITS
ADDRESS HEREIN ABOVE STATED. IF EITHER PARTY ADMITS RECEIPT OF SUCH SHALL BE
PRIVILEGED TO DESIGNATE A SUBSTITUTE ADDRESS FOR THE GIVING OF NOTICE TO IT
HEREUNDER, BY GIVING NOTICE OF SUCH SUBSTITUTION IN ACCORDANCE WITH THE
PROVISIONS OF THIS PARAGRAPH.

         48TH. IT IS MUTUALLY COVENANTED THAT IF THE LANDLORD SHALL REASONABLY
PAY OR BE COMPELLED TO PAY ANY SUM OF MONEY OR SHALL REASONABLY PERFORM ANY ACT
OR BE COMPELLED TO PERFORM ANY ACT, WHICH ACT SHALL REQUIRE THE PAYMENT OF ANY
SUM OF MONEY, BY REASON OR THE FAILURE OF THE TENANT TO PERFORM ANY ONE OR MORE
OF THE COVENANTS HEREIN CONTAINED, THE SUM OF SUMS SO PAID BY THE LANDLORD
TOGETHER WITH ALL INTEREST, COSTS AND DAMAGES, SHALL BE ADDED TO RENT
INSTALLMENTS NEXT DUE AND/SHALL BE COLLECTIBLE IN THE SAME MANNER AND WITH THE
SAME REMEDIES AS IF ORIGINALLY RESERVED AS RENT HEREUNDER.
<PAGE>

         49TH. THE LANDLORD HAS MADE NO REPRESENTATIONS OR WARRANTIES ANY KIND
OR NATURE EXCEPT ARE SPECIFICALLY SET FORTH HEREIN AND THE PARTIES AGREE THAT
THIS LEASE CONSTITUTES THE FULL AGREEMENT BY AND BETWEEN THEM. ANY HOLING OVER
BY THE TENANT AFTER THE TERM OF THIS LEASE SHALL BE UNLAWFUL AND IN NO MANNER
CONSTITUTE A RENEWAL OR EXTENSION OF THIS LEASE AGREEMENT. TENANT HAS INSPECTED
THE SUBJECT PREMISES, KNOWS THE CONDITION THEREOF AND TAKES THE SAME "AS IS".

         50TH. THE SECURITY POSTED HEREUNDER (PARAGRAPH 27) SHALL BEAR NO
INTEREST AND SHALL CONSIST OF AND BE EQUIVALENT TO TWO (2) MONTHS RENT AT ALL
TIMES. NOT POSTED.

         51ST. IN THE EVENT THAT THE TENANT SHALL NOT HAVE PAID THE RENT ON OR
BEFORE THE 5TH DAY OF THE MONTH DURING WHICH SAME IS DUE, THERE SHALL BE ADDED
TO SUCH RENT, AS ADDITIONAL RENT, A LATE CHARGE OF FIVE PERCENT (5%) OF THE RENT
DUE AND UNPAID. THE LANDLORD SHALL HAVE ALL RIGHTS WITH RESPECT TO THIS
ADDITIONAL RENT AS FOR THE NON-PAYMENT OF ANY AND ALL OTHER RENTS DUE UNDER THE
TERMS OF THIS LEASE. THE DEMAND FOR AND COLLECTION OF THE AFORESAID LATE CHARGE
SHALL IN NO WAY BE DEEMED A WAIVER OF ANY REMEDIES THAT THE LANDLORD MAY HAVE
UNDER THE TERMS OF THIS LEASE BY SUMMARY PROCEEDINGS OR OTHERWISE.

         52ND. THE LANDLORD SHALL NOT BE LIABLE IN ANY WAY, OR TO ANY EXTENT, OR
AT ALL, FOR OR ON ACCOUNT OR ANY INJURY TO ANY PROPERTY AT ANY TIME IN SAID
BUILDINGS, OR FOR OR ON ACCOUNT OF THE DESTRUCTION OF ANY PROPERTY AT ANY TIME
IN SAID BUILDINGS. LANDLORD SHALL NOT BE LIABLE FOR ANY DAMAGE DONE OR
OCCASIONED BY OR FROM PLUMBING, GAS, WATER, SPRINKLER, STEAM OR OTHER PIPES, OR
SEWERAGE OR THE BURSTING, LEAKING OR RUNNING OR ANY PIPES, TANK OR PLUMBING
FIXTURES IN, ABOVE, UPON OR ABOUT SAID BUILDING OR PREMISES, NOR FOR ANY DAMAGE
OCCASIONED BY WATER, SNOW OR ICE BEING UPON OR COMING THROUGH THE ROOF,
SKYLIGHTS, TRAP DOOR OR OTHERWISE, NOR FOR ANY DAMAGES ARISING FROM ACTS, OR
NEGLECT OF CO-TENANTS, OR OTHER OCCUPANTS OF THE SAME BUILDING OR OF ANY OWNERS,
OR OCCUPANTS, OR ADJACENT OR CONTIGUOUS PROPERTY, EXCEPT IF SUCH DAMAGE OR
INJURY IS CAUSED BY LANDLORD'S NEGLIGENCE.

         53RD. TENANT AGREES TO INDEMNIFY AND SAVE HARMLESS THE LANDLORD FROM
ANY CLAIM OR LOSS BY REASON OF THE TENANT'S USE OR MISUSE OF THE DEMISED
PREMISES AND FROM ANY CLAIM OR LOSS BY REASON OF ANY ACCIDENT OR DAMAGE TO ANY
PERSONS HAPPENING ON SAID PREMISES.

         54TH. THE TENANT SHALL ON THE LAST DAY OF THE TERM, OR UPON THE SOONER
TERMINATION OR THE TERM, PEACEABLY AND QUIETLY SURRENDER THE LEASED PROPERTY TO
THE LANDLORD, BROOM CLEAN INCLUDING ALL BUILDING, ALTERATION, REBUILDING,
REPLACEMENTS, CHARGES OR ADDITIONS PLACED BY THE TENANT THEREON, IN AS GOOD
CONDITION AND REPAIRS AS AT THE COMMENCEMENT OF THE TERM, AND AS ANY BUILDINGS,
STRUCTURES, REPLACEMENTS, ADDITIONS OR IMPROVEMENTS CONSTRUCTED, ERECTED, ADDED,
OR PLACED THEREON BY THE TENANT ARE WHEN COMPLETED, WITH THE NATURAL WEAR AND
TEAR THEREOF EXCEPTED.

         55TH. IT IS UNDERSTOOD AND AGREED THAT THE TENANT OCCUPIES FIFTY
PERCENT (50.00 PERCENT)OF THE TOTAL PREMISES AND IN ADDITION TO THE RENT HEREIN
REQUIRED TO BE PAID BY THE TENANT, TENANT WILL PAY TO THE LANDLORD AS ADDITIONAL
RENT THE FOLLOWING:

BASE YEAR 2000

                  A) FIFTY PERCENT (50%) OF ALL REAL ESTATE TAXES AND
                  ASSESSMENTS CHARGED TO THE PROPERTY, OF WHICH THE DEMISED
                  PREMISES ARE A PART.

                  B) ANY AND ALL INCREASE IN INSURANCE PREMIUMS CHARGED THE
                  LANDLORD BECAUSE OF THE OCCUPANCY OF THE TENANT OF THE DEMISED
                  PREMISES.
<PAGE>

                  C) FIFTY PERCENT (50%) OF ANY GENERAL RATE INCREASE IN
                  INSURANCE PREMIUMS NOW OR HEREAFTER CARRIED BY THE LANDLORD
                  COVERING THE AFORESAID PROPERTY OVER THAT IN EFFORT ON.

                  D) FIFTY PERCENT (50%) OF THE COST OF MAINTAINING AND CLEANING
                  OF THE DRIVEWAYS, SIDEWALKS AND PARKING LOT GARDENING, LINE
                  PAINTING, RESURFACING, REMOVAL OF SNOW, ICE, TRASH AND DEBRIS
                  AND GARBAGE REMOVAL.

         56th. The Tenant shall permit the Landlord, its agents, at all
reasonable times and after reasonable notice to erect, use, repair and maintain
any pipes and conduits in and through the demised premises, and the Landlord
shall have the right to enter the demised premised at all times to examine the
same and to show them to prospective purchasers or lessees of the building and
to make any improvements, additions or alterations as the Landlord may deem
necessary or desirable. All of the aforesaid may be done without constituting
and eviction of the Tenant and the rent reserved shall in no way abate during
the performance thereof. Nothing herein contained shall be deemed or construed
to impose upon the Landlord any obligation, responsibility or liability
whatsoever for repairs, care or supervision of the building on any part thereof
other than as herein otherwise provided in this lease. Any such entry onto the
demised premises shall be during normal business hours and shall not interfere
with Tenant's business nor impair Tenant's use of the demised premises.

         57th. If the demised premises be or become infested with vermin, the
Tenant shall at the Tenant's expense, cause the same to be exterminated for time
to time to the reasonable satisfactions of the Landlord.

         58th. Anything herein to the contrary notwithstanding, the premises
herein mentioned are demised for the whole term with the whole amount of rent
reserved due and payable at the time of the making of this lease, and the
payment of rent in installments as above provided is for the convenience of
Tenant only and upon default in the making of any installment payment of rent,
or upon breach of any of the terms, covenants of conditions of this agreement;
then the whole of the rent reserved for the whole of the period then remaining
unpaid shall, at Landlord's options, at once become due and payable without any
notice or demand.

         59TH. IN THE EVENT THAT THIS LEASE IS CANCELED BY THE LANDLORD FOR
DEFAULT BY THE TENANT IN THE PERFORMANCE OF ANY OF THE TERMS HEREOF, THE
LANDLORD SHALL APPLY AND RETAIN THE ENTIRE SECURITY THEN ON DEPOSIT TO AND IN
REDUCTION OF THE TOTAL DAMAGES WHICH LANDLORD MAY SUSTAIN OR INCUR AS A RESULT
OF THE TENANT'S DEFAULTS.

         60TH. IN THE EVENT OF ANY CLAIM BY THE TENANT TO THE EFFECT THAT
ANOTHER TENANT IN ANY WAY ENCROACHES UPON OR VIOLATES ANY OF ITS RIGHTS UNDER
THIS LEASE, THE TENANT'S SOLE RECOURSE SHALL BE AGAINST SUCH OTHER TENANT AND IN
NO EVENT WILL THE LANDLORD BE REQUIRED TO INSTITUTE ANY LEGAL PROCEEDING OR TO
TAKE OTHER STEPS AGAINST THE TENANT ALLEGED TO BE IN VIOLATION. THIS SHALL IN NO
WAY, HOWEVER, LIMIT THE RIGHTS OF THE TENANT AS AGAINST SUCH OTHER TENANT OR
VIOLATING PARTY, NOR SHALL SUCH ENCROACHMENT CONSTITUTE A DEFAULT UNDER OR
BREACH OF THIS LEASE BY THE LANDLORD.

         61ST. THE TENANT AGREES THAT THE RENT PROVIDED FOR HEREIN SHALL BE PAID
TO THE LANDLORD WITHOUT DEMAND AND WITHOUT OFFSET OR DEFENSE AT THE ADDRESS SET
FORTH HEREIN, OR AT SUCH OTHER ADDRESS AS THE LANDLORD MAY AT ANY TIME DESIGNATE
IN WRITING.

         62ND. THE SIDEWALK, DRIVEWAY, PARKING LOT AREAS AND ENTRANCES OF THE
DEMISED PREMISES SHALL NOT BE OBSTRUCTED BY THE TENANT AND THE TENANT SHALL
MAINTAIN AND CLEAN SAME AND SHALL KEEP SAME FREE OF ICE, SNOW, DEBRIS AND REFUGE
AND IN ADDITION, MAKE ALL REPAIRMAN REPLACEMENTS THERETO WHICH MAY BECOME
NECESSARY AS A CONSEQUENCE OF THE FAULT OR NEGLIGENCE ON THE PART OF THE TENANT.

         63RD. IF THERE SHALL BE FILED BY OR AGAINST THE TENANT A PETITION IN
BANKRUPTCY OR INSOLVENCY OR FOR REORGANIZATION OR FOR THE APPOINTMENT OF A
RECEIVER OR TRUSTEE OF ALL OR A PORTION OF THE TENANT PROPERTY, OR IF THE TENANT
MAKES AN ASSIGNMENT FOR THE BENEFIT OF CREDITORS, THIS LEASE SHALL IPSO FACTO BE
CANCELED AND TERMINATED. IN SUCH EVENT NEITHER TENANT NOR ANY PERSON CLAIMING
THROUGH OR UNDER TENANT OR BY VIRTUE OF ANY STATUTE OR AN ORDER OF ANY COURT
SHALL BE ENTITLED TO POSSESSION OF THE DEMISED PREMISES. THE LANDLORD, IN
ADDITION TO OTHER RIGHTS AND REMEDIES CONTAINED IN THIS LEASE OR BY VIRTUE OF
ANY STATUTE OR RULE OF LAW MAY RETAIN AS LIQUIDATED DAMAGES ANY AND ALL RENTS,
SECURITY, DEPOSIT OR MONEYS RECEIVED BY LANDLORD FROM TENANT.
<PAGE>

         64TH. LANDLORD MAKES NO REPRESENTATION AS TO THE PERMITTED USE OF THE
SUBJECT PREMISES AND THIS LEASE IS EXPRESSLY MADE SUBJECT TO THE ZONING
ORDINANCES OF THE APPROPRIATE MUNICIPAL AUTHORITY HAVING JURISDICTION OVER THE
PREMISES AND ANY AGENCY OR SUBDIVISION THEREOF. ALL PERMITS WHICH MAY BE
NECESSARY FOR THE MAINTENANCE AND OPERATION OF THE TENANT'S BUSINESS SHALL BE
OBTAINED AND MAINTAINED BY THE TENANT AT THE TENANT OWN COST EXPENSE.

         65TH.THE TENANT AGREES AT ANYTIME AND FROM TIME TO TIME, UPON NOT LESS
THAT FIVE (5) DAYS PRIOR WRITTEN REQUEST BY THE LANDLORD, TO EXECUTE,
ACKNOWLEDGE AND DELIVER TO THE LANDLORD A STATEMENT IN WRITING CERTIFYING THAT
THIS LEASE IS UNMODIFIED AND IN FULL FORCE AND EFFECT, OR IF THERE HAVE BEEN
MODIFICATIONS THAT THE SAME ARE IN FULL FORCE AND EFFECT AS MODIFIED, AND
STATING THE MODIFICATION AND DATES TO WHICH RENT AND OTHER CHARGES HAVE BEEN
PAID IN ADVANCE, IF ANY. IT IS INTENDED THAT ANY SUCH STATEMENT DELIVERED
PURSUANT TO THIS PARAGRAPH MAY BE RELIED UPON BY ANY PROSPECTIVE PURCHASER OF
THE FEE OR ANY MORTGAGEE OR ASSIGNED OF ANY MORTGAGE UPON THE FEE OF THE DEMISED
PREMISES.

         66TH. THE RECEIPT BY LANDLORD FOR RENT WITH KNOWLEDGE OF A BREACH OF
ANY COVENANT OF THIS LEASE SHALL NOT BE DEEMED A WAIVER OF SUCH BREACH. NO
PAYMENT BY TENANT OR RECEIPT BY LANDLORD OF A LESSER AMOUNT THAT THE MONTHLY
RENT HEREIN STIPULATED SHALL BE DEEMED TO BE OTHER THAN ON ACCOUNT OF THE
EARLIEST STIPULATED RENT. NO ENDORSEMENT OR STATEMENT ON ANY CHECK OR ANY LETTER
ACCOMPANYING ANY CHECK OR PAYMENT WITHOUT PREJUDICE TO LANDLORD'S ACCOMPANYING
ANY CHECK OR PAYMENT WITHOUT PREJUDICE TO LANDLORD'S RIGHT TO RECOVER THE
BALANCE OF SUCH RENT OR PURSUE ANY OTHER REMEDY IN THIS LEASE PROVIDED.

         67TH. NOTWITHSTANDING ANYTHING HEREIN CONTAINED TO THE CONTRARY THE
LANDLORD'S CONSENT TO THE TENANT EITHER ASSIGNING OR SUBLETTING THE DEMISED
PREMISES SHALL NOT BE UNREASONABLE WITHHELD; HOWEVER, THE FOLLOWING CONDITIONS
FOR ANY REQUESTED CONSENT SHALL APPLY IN ADDITION TO WHATEVER OTHER REASONABLE
REQUESTS MAY BE MADE BY THE LANDLORD:

         1)       Each assignment or sub-lease shall be in writing and shall
                  contain an agreement whereby the assignee or sub-tenant shall
                  assume all or the obligations of the Tenant to the Landlord;

                  b) No assignment or sub-lease shall be valid unless at the
                  time of the making thereof all of the Tenant's obligations to
                  the Landlord are current;

         1)       Said agreement, executed by the assignor or tenant-lessee,
                  with the assumption of the assignee or under-tenant shall be
                  deposited with the Landlord within five (5) days of the making
                  of such assignment or sub-lease;

                  d) Any such assignment or sub-lease shall specifically set
                  forth what portion, if any, of the security deposit made by
                  the Tenant is assigned to the credit of the assignee or
                  sub-tenant;

         1)       Any assignment of sublease shall in no part release the
                  original Tenant or any subsequent assignee or under-tenant
                  from any obligation to the Landlord;

                  f) Two months additional security shall be deposited with the
                  Landlord upon the making of each assignment or sub-lease
                  hereunder and such security shall be held by the Landlord
                  pursuant to the terms of paragraph 27th. Hereof;

         1)       All assignments or sub-lease agreements shall be made in
                  accordance with the terms of paragraph 27th. hereof;
<PAGE>

         68th. Any transfer of a majority of the issued and outstanding capital
stock of any corporate Tenant, however accomplished, and whether in a single
transaction or in a series of related or unrelated transactions, shall be deemed
to be an assignment of this lease. Likewise, an increase in the number of issued
and/or outstanding shares of capital stock of any corporate Tenant and/or the
creation of one or more additional classes of capital stock of any corporate
Tenant, however accomplished and whether in a single transaction or a series of
related or unrelated transaction, with the result that at least fifty-one (51%)
percent of the beneficial interest and record ownership's in and to such Tenant
shall no longer be held by the beneficial and record owners of the capital stock
of such corporate Tenant as of the date of the execution of this lease, or the
date such corporation shall become the Tenant hereunder (whichever is later,
shall be deemed to be an assignment of this lease. Such assignment of lease
hereunder shall be governed by the other provisions of this lease.

         69th. Not withstanding anything contained herein, it is agreed that the
Tenant shall not be required to pay any additional rent for the items set forth
in paragraph 55th. for its occupancy of the subject premises for the period July
1, 2000 to Jun 30, 2001 it being the intention of the parties that the Tenant
shall pay the set amount set forth in paragraph 55th. of this lease to the
annual rent.

         70th. If the Tenant defaults in the payment of rent or any other
charges that the Landlord becomes responsible to pay for, including but not
limited to garbage removal, utilities, tenant repairs and municipal fees, the
individual principals and/or members of Tenant will be personally and
individually responsible for the payment of such rent and other charges up to
the date premises are vacated and broom clean possession returned to the
Landlord.

         d)       There shall be no further option to renew this lease.

                                  Great American Realty of 14 Burt Drive, LLC

                                  By: /s/ Mark Siegel
                                      ------------------------------------------
                                              Mark Siegel, Landlord

                                  By: /s/ Ira Levy
                                      ------------------------------------------
                                          Ira Levy, President, Tenant

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