Document:

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                                                                 EXHIBIT 10.63

              AGREEMENT OF LEASE made as of this 8th day of April, 1997
between GOLDEN UNION, LLC, having its principal office c/o ALMA REALTY CO.,
28-18 31st Street, Astoria, New York 1 1102

              (hereinafter referred to as "Landlord"), and

PHONETIME, INC, having its principal office at 30-60 Whitestone Expressway,
Flushing, New York 11354

              (hereinafter referred to as "Tenant").

              WITNESSETH Landlord and Tenant hereby covenant and agree as
follows

                                      SPACE

1.   Landlord is the fee owner of the Building and the parcel of real
property on which the Building is located (which includes the Building
Parking Area as defined below). Landlord hereby leases to Tenant and Tenant
hereby leases from Landlord approximately 2,700 square feet on the ground
floor, approximately 15,600 square feet, which is the entire second floor and
approximately 9,000 square feet on the third floor substantially as shown on
the Rental Plan initialed by the parties and made part hereof as Exhibit I
("Demised Premises") in the building known as the Whitestone Executive Plaza,
30-50 Whitestone Expressway, Flushing, New York 11354, (hereinafter referred
to as the 'Building"). The Demised Premises currently contains approximately
27,300 rentable square feet which currently constitutes 43.86 percent of the
rentable area of the Building. In addition to occupying the Demised Premises,
Tenant, during the entire term of this Lease shall have the right to use in
common with others, at no additional expense to Tenant a) all common areas
and public portions of the Building, b) all remaining available space on the
roof of the Building, whereby Tenant shall install telecommunications
equipment; and c) space located in the parking lot or adjoining the Building,
whereby Tenant shall install/house an electrical generator

                                      TERM

2.   The term of this lease shall commence April 1, 1997 hereinafter referred
to as the "Term Commencement Date", and shall terminate on March 31, 2002,
hereinafter referred to as the "Expiration Date". The term of this Lease is
subject to extensions as provided for below

     Should the Term Commencement Date be a date other than the first day of
the month, the Tenant shall pay a pro rata portion of the rent from such date
through and including the last day of such month. Should the Expiration Date
be a date other than the last day of the month, the Tenant shall pay a pro
rate portion of the base rent from the first day of such month through and
including such Expiration Date

     In consideration of Tenant entering this Lease, Landlord hereby waives
(i) the payment of

<PAGE>

all rent for the second and third floor for the months of
April 1, thru June 30, 1997 and (ii) all rent for the 2,700 square feet of
the first floor until the later to occur of (a) June 30,1997 or (b) the
completion of all construction work to be performed b) Landlord on such first
floor space to Tenant's reasonable satisfaction.

                                      RENT

3.   The basic annual rental rate is as follows:

<TABLE>
<CAPTION>

       LEASE YEAR                 ANNUAL RENT        MONTHLY RENT
       ----------                 -----------        ------------
       <S>                       <C>                 <C>
          1st                    $480,000.00         $40,000.00
          2nd                     499,200.00          41,600.00
          3rd                     519,168.00          43,264.00
          4th                     539,934.72          44,994,57
          5th                     561,532.11          46,794.34
</TABLE>

During the term of this Lease, the basic annual rental shall be as cited
above, payable in equal monthly installments as listed above, which Tenant
agrees to pay in lawful money of the U.S. which shall be legal tender in
payment of the debts and dues, public and private, at the time of payment, in
advance on the first day of each calendar month during the Demised Term at
the Office of the Landlord, except that Tenant shall pay the first monthly
installment on the signing of this Lease and, subject to the rent concessions
set forth in paragraph 2 above, each month thereafter from the "Term
Commencement Date". Tenant shall pay the rent as above and as hereinafter
provided, without any set off or deduction whatsoever, except as set forth
herein.

3.1                               RENEWAL OPTION

     Provided that Tenant is not then in default beyond any applicable cure
period of any of the covenants and conditions of this Lease, Landlord hereby
grants to Tenant an option to continue leasing the Leased Premises for One
(1) Five (5) Year Option Period commencing on the day following the last day
of the initial Lease Term. Tenant shall exercise this renewal option by
giving to Landlord, at least one hundred eighty (180) days prior to the
expiration of the respective preceding Lease Term, written notice from Tenant
stating that Tenant intends to exercise said renewal option. In the event
that Tenant fails to exercise its renewal option hereunder, or such renewal
notice from Tenant is not timely given, the renewal option provided for
herein shall immediately cease and be thereafter null and void.

     During the renewal Lease Term, the terms and provisions of this Lease,
including those terms relating to additional rent, shall remain unchanged,
except that tins Article 3.1 shall be deleted. The Base Rent for such renewal
term shall be as follows:

<TABLE>
<CAPTION>
                                 ANNUAL RENT                 MONTHLY RENT
                                 -----------                 ------------
          <S>                    <C>                         <C>
          1st                    $583,993.40                  $48,666.12
          2nd                     607,353.14                   50,612.76

<PAGE>

          3rd                     631,647.25                   52,637.27
          4th                     656,913.15                   54,742.76
          5th                     683,189.68                   56,932.47
</TABLE>

3.2                               TERMINATION OF LEASE

      Provided that Tenant is not in default beyond any applicable cure
period of any of the covenants and conditions of tins Lease, Landlord hereby
grants to Tenant the right to terminate this Lease at any time, but, only
during the Option Period of this Lease.

      In order to exercise the termination option, Tenant must first notify
Landlord in writing of its option to terminate and the effective date of
termination. This notice must be given to Landlord at least three (3) months
prior to the effective date of termination.

      An additional requirement in order for Tenant to exercise its
Termination Option shall be that Tenant must pay to Landlord an amount equal
to six (6) months base rent for the six (6) month period that follows the
effective date of Tenant's termination. (For example, if Tenant notifies
Landlord that July 1, 2004 shall be the effective date of termination, Tenant
must be current with its rent through June 30, 2004 and must pay to Landlord
the six (6) month Lease buy-out for months covering July 1, 2004 through
December 31, 2004 at $50,612.76/month * six (6) months = $303,676~56)

      Once Landlord receives the six (6) months of the Lease buy-out, payable
ONLY by certified funds, and Tenant vacates the Premises and leaves same in
broom clean condition, Landlord and Tenant shall execute a Surrender of Lease
Agreement and thereafter Tenant shall not be liable for any of the remaining
Lease term or any obligations of this Lease.

                                       USE

4.   The Tenant shall use and occupy the Demised Premises only for General
Office use and for the installation and maintenance of a telecommunication
switching facility and related equipment and for no other purpose. Tenant
shall also have the tight to install and maintain, at Tenant's expense,
conduits both inside the Building and from the generator into the Building in
connection with the use of its equipment.

                                    SERVICES

5.   Landlord will provide heat and air conditioning to the Demised Premises
(subject to the conditions set forth in "Schedule C" attached hereto and made
part hereof) during business hours of 8:00 a.m. to 6:00 p.m. on weekdays and
from 9:00 a.m. to 6:00 p.m. on Saturdays; excluding all legal holidays.
Tenant will pay proportionate share of utility charges as it relates to the
Demised Premises as billed by Landlord. Tenant's proportionate share will be
43.86% of the Building's bill for the aforementioned charges, which
proportionate share is subject to change based upon any change in the square
footage of the Building or the Demised Premises. Landlord

<PAGE>

will manage the Building in accordance with building standards for similarly
situated first class office buildings.

     Charges for heat, air conditioning and utilities for common areas shall
be prorated to the Tenant in accordance with the percentage of the building's
rentable space occupied by the Tenant. Landlord will furnish copies of all
such bills to Tenant promptly upon receipt thereof.

6.   Landlord will provide cleaning services which will be performed between
the hours 5:00 p.m. and 6:00 a.m. on Monday through Friday, legal holidays
excepted, as set forth in Schedule "D", attached hereto and made part hereof.

7.   Landlord will furnish elevator service to the Demised Premises during
business hours at no charge to Tenant.

8.   Landlord will furnish adequate hot and cold tempered water for lavatory,
drinking and cleaning services at no charge to Tenant.

9.   At any hours other than the aforementioned business hours at the Tenant'
s request and upon Landlord's agreement, not to be unreasonably withheld or
delayed, any services heretofore enumerated will be provided at the Tenant's
expense as overtime services, except that there will be no charge for
overtime service for moving in and out of the Demised Premises

     Heat and Air Conditioning overtime charge is $25.00 per hour or any part
thereof. This charge will escalate annually at the rate of five percent
(5%/year).

     Except for the months expressly payable by Tenant under this Article
entitled "Services" as well as amounts payable by Tenant under Article 17
below, Tenant shall not be responsible for the payment of any other operating
expenses incurred by the Landlord in connection with the Building or the
Property.

10.  Any diminution services required by Federal, State or Municipal Law or
by virtue of any code or regulation or directive of any Environmental Agency
or Conservation Program of the Federal State, City, County or local
government body of any nature whatsoever, shall not entitle the Tenant to any
diminution, abatement or refund of rent or other charges due under the
provisions of this Lease except if it renders the Demised Premises unusable.

                               LANDLORD'S REPAIRS

11.  (A) Landlord at its expense, will make all the repairs to and provide
the maintenance for the Demised Premises (excluding painting and decoration)
and for all public areas and facilities, and to the roof and structure to the
Building and to the building systems including but not limited to plumbing,
electrical, HVAC and mechanical servicing the Demised Premises and to the
windows of the building in a manner appropriate for a first class office
building in Flushing, New York, except such repairs and maintenance as may be
necessitated by the negligence, improper care or use of such premises and
facilities by Tenant, its agents, employees, licensees or invitees,

<PAGE>

which will be made by Landlord at Tenant's expense. Landlord represents that
all systems function, roof does not leak and there are no structural defects
in the building

     (B) Notwithstanding the aforementioned, Landlord shall provide the
following to Tenant at no cost to Tenant: a) paint and plaster the Demised
Premises prior to Tenant's occupancy of same; b) Landlord shall clean and
repair the carpet in the Demised Premises as needed; c) Landlord shall
install a swipe system that can print details of users access at the front
entrance and at the entrance of Tenant's space on each of the three floors;
d) Landlord shall install two sets of glass doors for the second floor rear
elevators with a card access swipe lock; e) Landlord shall install a security
system comprising of cameras, intercoms and buzzers for all three floors; f)
Landlord shall pave the driveway; g) construct a loading dock; h) Landlord
shall build-out Tenant's space located on the first floor in accordance with
reasonable plans and specifications to be submitted by Tenant to Landlord;
and (i) Landlord shall remove the two offices and closets located on the
third floor space and install a secure double door in accordance with
reasonable plans and specifications provided by Tenant to Landlord, all of
which work shall be completed by Landlord lien free arid in a good and
workmanlike manner in accordance with all applicable laws and regulations

     Landlord shall provide the following at Tenant's sole cost: a) security
bars/gates for the first (1") floor space; and b) Landlord to provide Tenant
with an adequate exterior location (mutually agreed upon by both parties)
whereby Tenant shall install/house a generator. No additional rent shall be
payable on account of such space

     Landlord represents that the Building of which the Demised Premises
forms a part of shall be cable ready by the time Tenant occupies same.

                                  PARKING FIELD

12.  Tenant shall have the right at no additional cost to Tenant or its
employees or invitees, to self-park in 125 reserved parking spaces for the
reserved parking of automobiles of the Tenant, its employees and invitees, in
the parking area reserved for tenants of the Building (hereinafter sometimes
referred to as "Building Parking Area") subject to the Rules and Regulations
now or hereafter reasonably adopted by Landlord. Said parking spaces shall be
marked as Reserved PT1. Landlord shall have no obligation to police said
parking spaces, but shall be obligated to maintain the Building Parking Area.

                                    DIRECTORY

13.  Landlord will furnish in the lobby of the Building a directory which
     will contain a Tenant List. Tenant shall have the right to install its
     own directory in the lobby of each floor of the Building in which Tenant
     occupies space but must first obtain Landlord's consent, which consent
     shall not be unreasonably withheld or delayed.

                                TENANT'S REPAIRS

<PAGE>

14.  Tenant shall take good care of the Demised Premises and, subject to the
provisions hereof, Landlord after fifteen (15) days notice to Tenant, except
in an emergency, at the expense of Tenant shall make as and when needed as a
result of misuse or neglect by Tenant or Tenant's servants, employees, agents
or licensees, all repairs in and about Demised Premises necessary to preserve
them in good order and condition. When caused by misuse or neglect by Tenant
or Tenant's servants, employees, agents, licensees or invitees, except as
provided in Article 36 hereof there shall be no allowance to Tenant for a
diminution of rental value and no liability on the part of Landlord by reason
of inconvenience, annoyance or injury to business arising from Landlord,
Tenant or others making any repairs, alterations, additions or improvements
in or to any portion of the Building or of Demised Premises, or in or to the
fixtures, appurtenances or equipment thereof, except for Landlord's own
negligence or that of its agents, contractors or employees. Landlord agrees
to use its best efforts to not interfere with Tenant's business. Landlord
shall not be obligated to do work at "premium hours."

                                  FLOOR LOADING

15.  The placement of any equipment which will impose an evenly distributed
floor load in excess of 50 pounds per square foot live load shall be done
only after written permission is received from the Landlord which shall not
be unreasonably withheld. Such permission will be granted only after adequate
proof is furnished by a professional engineer that such floor loading will
not endanger the structure

                                    INSURANCE

16.  Tenant, at its expense, shall maintain at all times during the term of
this Lease, public liability insurance in respect of the Demised Premises and
the conduct or operation of business therein, with Landlord as an additional
named insured, and with not less than $1,000,000 for property damage and not
less than $1,000,000 for bodily injury or death to any number of persons in
any one occurrence under a customary property insurance policy.

     Tenant shall promptly deliver to Landlord a Certificate of Insurance for
such fully paid for policies prior to occupancy, and Tenant shall deliver to
Landlord such Certificate of Insurance for renewal policy at least thirty
(30) days before the expiration of any existing policy. All such policies
shall be issued by companies licensed to do business in the State of New York
and all such policies shall contain a provision whereby the same cannot be
canceled or materially modified unless Landlord is given at least twenty (20)
days prior written notice of such cancellation or material modification,
including, without limitation, any cancellation resulting from the
non-payment of premiums.

     Landlord, at its expense, shall maintain at all tunes public liability
insurance coverage of $3,000,000.00 on the Building and also have the
Building insured for its full replacement value

                           REAL ESTATE TAX ESCALATION

17.  (A) For purposes of this Article 17, the following definitions shall
apply:

<PAGE>

     (a) The term "Tax Year" shall mean the City of New York fiscal year,
July 1 to June30 (or such other fiscal year as hereafter may be duly adopted
by the City of New York as the fiscal year for real estate tax purposes).

     (b) The term "Escalation Year" shall mean any Tax Year during the term
of this Lease commencing with Tax Year commencing July 1,1998.

     (c) The term "Base Tax Year' shall mean the July 1, 1997 to June30, 1998
Tax Year.

     (d) The term 'Base Taxes" shall mean the Taxes computed by the taxing
jurisdiction for the Base Tax Year

     (e) The term "Taxes" shall be deemed to include all real estate taxes
upon or with respect to the tax lot upon which the building is situated and
imposed by the City of New York, County of Queens, or any other taxing
authority, provided that the tax assessed by any other taxing authority is to
create a new or additional source of revenue through taxation of real estate
as such. If, due to any change in the method or taxation, or other tax shall
be substituted for, or levied against Landlord or any owner of the Budding or
the Real Property, in lieu of any real estate taxes or assessments upon or
with respect to the Real Property, such tax shall be included in the term
Taxes for the purposes of this Article, except taxes such as franchise,
income, or revenue tax on Landlord's rental income receipts.

     Landlord hereby represents that there are no other improvements on the
tax lot other than the Building and Building Parking Area.

(B)  If taxes payable in any Escalation Year shall be in such amount as shall
constitute an increase above or decrease below Base Taxes, Tenant shall pay
"Tenant's Proportionate Share", (i e currently 43 86%) of such increase or
Tenant shall receive its proportionate share of any decrease &Tenant's
Proportionate Share shall mean the fraction, the denominator of which is the
net rentable area of the Building (currently 62,260 square feet) and the
numerator of which is the Demised Premises area (currently 27,300 square
feet).

     Increases in taxes, payable by reason of reductions in Landlord's tax
abatement shall be deemed tax increases subject to provision of this
Escalation Clause.

     (1) INTENTIONALLY OMITTED.

     (2) If the sum of the installments of Taxes payable by Landlord in any
Escalation Year exceeds the Landlord's Base Taxes for the Base Tax Year, the
annual rental reserved hereunder for such Escalation Year shall be increased
by Tenant's Proportionate Share of the amount of such excess and shall be
payable during such Escalation Year in monthly amounts equal to 1/12th of tie
amount of such increase (as reasonably estimated by Landlord if not finally
determinable on the first day of such Tax Year, subject to later adjustment).

<PAGE>

     (3) If a final determination shall be rendered reducing the assessed
valuation of the land and/or Building for the Landlord's Base Tax Year, the
assessed valuation as so reduced shall, for all purposes be the assessed
valuation used in computing the Landlord's Base Taxes under section (d) of
subparagraph (A) above. If said determination is rendered subsequent to the
submission by Landlord to Tenant of any statements referred to in sub
paragraph (5) below, Landlord shall submit revised statements to Tenant based
upon the reduced assessed valuation and Tenant shall, within thirty (30) days
after submission of said revised statements, pay Landlord any additional rent
due by reason of such recomputations which computation shall be adequately
set forth in the said revised statements.

     (4) If Landlord shall receive a refund of Taxes for any Tax Year with
respect to which Tenant paid additional rent by reason of an increase in
Taxes, Landlord shall set forth in the first statement thereafter submitted
to Tenant pursuant to subparagraph (5) below the amount of such refund and
the amount of the legal fees and other expenses incurred in connection with
the collection of the refund; and, provided that Tenant is not in arrears,
credit for Tenant's Proportionate Share of the refund maybe taken against the
installment or installments of rent next falling due equal to Tenants
Proportionate Share of the amount by which the refund exceeds said fees and
expenses. In no event shall such fees and expenses exceed the refund.

     (5) Landlord shall from time to time during the term of this Lease,
after the respective amounts of taxes for the period in question become
ascertainable, submit to Tenant statements setting forth the computation of
any increase or decrease in rental. Landlord's failure to submit a statement
or statements pursuant to this sub-paragraph (5) or sub-paragraph (2) above
shall not constitute a waiver of any rent increases payable by Tenant under
this paragraph, provided however, that such additional rental shall only
become due and payable following Tenant's receipt of such statement from
Landlord. Landlord may submit its statements (or estimates thereof)
separately and at different times, but the payment of additional rent shall
nevertheless he made in the manner and within the time limits herein above
set forth with respect to each statement so submitted

     (6) If the term of this Lease expires on a day other than the last day
of the Tax Year, rental increases pursuant to subparagraph (2) above shall be
pro-rated as of said expiration date.

     (7) In the event of a taking, pursuant to the power of eminent domain,
of a portion of the Building under such circumstances as shall not result in
a termination of this Lease then from and after the date of such taking (i)
the Base Tax Amount shall be deemed reduced in proportion to the reduction in
the number of square feet of rentable space in the Building resulting from
such taking, and (ii) Tenant's Proportionate Share shall be adjusted so as to
be equal to a fraction of which the denominator is the reduced number of
square feet of rentable space in the building and the numerator is the number
of square feet of space leased to Tenant following such taking.

     (8) The provisions of this paragraph shall survive the expiration or
termination of this Lease until a final adjustment has been made for the Tax
Year in which the Expiration Date occurs.

     (9) The statements of the adjustment to be furnished by Landlord as
provided in

<PAGE>

subdivision (5) shall be based on data submitted by Landlord to a firm of
Certified Public Accountants (who may be the firm now or then currently
employed by Landlord for the audit of its accounts). In the accountant's
opinion based on the date submitted, such statements shall present fairly the
escalation adjustment for the periods represented thereby.

      (10) Any delay or failure of Landlord, beyond January of any year, in
computing the billing for the rent adjustments herein above provided, shall
not constitute a waiver of or in any way impair the continuing obligation of
Tenant to pay such rent adjustments hereunder upon Tenant's receipt of such
statements

     (11) Notwithstanding any expiration or termination of this Lease prior
to the Lease expiration dare (except in the case of a cancellation by mutual
agreement, termination upon casualty or condemnation or upon termination by
Tenant in accordance with Article 3.2) Tenant's obligation to pay rent as
adjusted under this Article shall continue and snail cover all periods up to
the Lease expiration date, and shall survive an expiration or termination of
this Lease until such amounts previously accruing have been paid.

18.  If the first or final lease year during which escalations may occur
shall contain less than twelve (12) months, the additional rental under this
Lease shall be prorated.

                                  MISCELLANEOUS

19.  Landlord shall upon Tenant's request execute a Memorandum of Lease in
recordable form.

20.  THIS SPACE IS INTENTIONALLY OMITTED.

21.  THIS SPACE IS INTENTIONALLY OMITTED.

22.  In the event the Tenant shall fail to pay Landlord the charges and
expenses as required by the terms of this Lease, the Landlord shall have the
same rights and remedies as those provided for in the Lease with regard to
the Tenant's failure to pay an installment of the annual base rent.

23.  The term "Lease Interest Rate" shall mean interest at the rate of ten
(10%) percent per annum provided such rate does not violate the usury laws of
New York State. If such rate violates such usury laws, then it shall be 1/2%
below the maximum permissible rate.

                            FIXTURES & INSTALLATIONS

24.  All appurtenances, fixtures, improvements, additions and other property
attached to or built into the Demised Premises, by Landlord at Landlord' s
expense, shall be and remain the property of Landlord, except that any such
fixtures, improvements, additions and other property installed at the expense
of Tenant may be removed by Tenant on the condition that Tenant shall repair
at its expense any damage to the Demised Premises or the Building resulting
from such

<PAGE>

removal. Notwithstanding anything herein to the contrary, all equipment
installed by Tenant shall remain the property of Tenant in all events. Except
as otherwise provided for herein, all the outside walls of the Demised
Premises including corridor walls and the outside entrance doors to the
Demised Premises, any balconies, terraces or roofs adjacent to the Demised
Premises and any space of the Demised Premises used for shafts, stacks,
pipes, conduit ducts or other building facilities, and the use thereof as
well as access thereto upon notice and accompanied by Tenant in and through
the Demised Premises for the purpose of operation, maintenance, decoration
and repair, are expressly reserved to Landlord, and Landlord does not convey
any rights to Tenant therein, provided the area demised to Tenant is not
reduced thereby or the use of the Demised Premises by Tenant is not
restricted or interfered with thereby. Notwithstanding the foregoing, Tenant
shall enjoy full right of access to the Demised Premises through the public
entrances, public corridors and public areas within the Building.

                                   ALTERATIONS

25.  (A) After completion of the Demised Premises, except items that can be
removed at the end of term the installation of winch do not require permits,
Tenant shall make no structural alterations, decorations, installations,
additions or improvements in or to the Demised Premises without Landlord's
prior written consent (which consent shall not be unreasonably withheld or
delayed) and then only by contractors or mechanics who do not interfere with
Landlord's work in the Building by labor disharmony

     (B) All installations or work done by Tenant shall at all times comply
with:

          (1) Laws rules, orders and regulations of governmental authorities
having jurisdiction thereof.

          (2) Reasonable rules and regulations of the Landlord.

          (3) Plans and specifications prepared by and at the expense of
Tenant shall he submitted to Landlord for its prior written approval which
approval will not be unreasonably withheld or delayed; no installations or
work shall be undertaken, started, or begun by Tenant, its agents, servants
or employees, until Landlord has approved such plans and specifications, and
no material amendments or additions to such plans and specifications shall be
made without prior written consent of Landlord, which will not be
unreasonably withheld or delayed. Tenant agrees That it will not either
directly or indirectly, use any contractors and/or labor and/or materials
that would or will create any labor disharmony with any contractors and/or
labor engaged by Landlord in the construction, maintenance and/or operation
of the Building or any part thereof.

          (4) The indemnity contained in Article 34 (B) shall apply to any
claim arising out of the performance of said Tenant's work. Tenant shall
supply Landlord with workmen's compensation certificates for all persons
and/or contractors performing work for Tenant at the Demised Premises, a
public liability insurance policy in the sum of Two Million ($2,000,000 00)
Dollars for personal injuries and death claims and Five Hundred Thousand
($500,000.00) Dollars

<PAGE>

for property damage. In the event any mechanics lien shall be filed against
the Building by any of the Tenant's contractors, subcontractors or material
men, for work done on behalf of Tenant, Tenant shall discharge the lien by
bond, payment or otherwise, within thirty (30) days of filing thereof after
notice to Tenant and upon Tenant's failure to so discharge any lien, Landlord
may, at its option, remove the lien by bonding and charge the Tenant with the
cost thereof, together with reasonable attorneys' fees.

                               REQUIREMENTS OF LAW

26.  (A) Tenant, at Tenant's sole cost and expense shall comply with all
applicable laws, orders and regulations of Federal, State, County and
Municipal authorities, and with all directions, pursuant to law, of all
public officers, which shall impose any duty upon Tenant with respect to the
special use or occupation of the Demised Premises by Tenant, except that
Tenant shall not be required to make any structural alterations in order so
to comply unless such alterations shall be necessitated or occasioned, by the
improper acts, omissions, or negligence of Tenant or any person claiming
through or under Tenant or any of their employees, contractors, agents,
invitees or licensees.

     (B) Tenant shall not do anything, or permit anything to be done, in the
Demised Premises which shall (i) invalidate or be in conflict with the
provisions of any fire or other insurance policies covering the Building or
any property located therein, or (ii) result in a refusal by fire insurance
companies of good standing to insure the Building or any such property, or
(iii) cause any increase in the fire insurance rates applicable to the
Building or property located therein at the beginning of the Demised Term or
at any time thereafter Tenant at Tenant's expense, shall comply with all the
rules, orders, regulations or requirements of the New York Board of Fire
Underwriters and the New York Fire Insurance Rating organization or any
similar body. Landlord represents that the use of the Demised Premises as
general offices and the installation and maintenance of a telecommunication
switching facility and related equipment will not give rise to sub-paragraph
(i) through (iii) above being effective.

     (C) In any action or proceeding wherein Landlord and Tenant are parties,
a schedule or "make-up" of rates applicable to the Building or property
located therein issued by the New York Fire Insurance Rating Organization or
other similar body fixing such fire insurance rates, shall be conclusive
evidence of the facts therein stated and of the several items and charges in
the fire insurance rates then applicable to the Building or property located
therein.

     (D) Landlord shall be responsible for curing any notices of violation
not arising out of Tenant's acts issued by any governmental agency affecting
the Demised Premises and the Building and Property and otherwise complying
with all applicable laws and regulations affecting the Building and the
Property.

                                   END OF TERM

27.  Upon the expiration or other termination of the term of this Lease,
Tenant shall quit and

<PAGE>

surrender to Landlord the Demised Premises broom clean, in good order and
condition, ordinary wear and casualty excepted, and Tenant shall remove all
if its property and shall repair all damage to the Demised Premises or the
Building occasioned by such removal. Any property not removed from the
premises shall be deemed abandoned by Tenant and may be disposed of in any
manner deemed appropriate by the Landlord, unless otherwise agreed to in
writing (i.e extension of time to remove). Tenant expressly waives, for
itself and for any person claiming through or under Tenant, any rights which
Tenant or any such person may have under the provisions of Section 221 of the
Real Property Actions and Proceedings Law and of any successor law of like
import then in force in connection with any holdover or summary proceedings
which Landlord may institute to enforce the foregoing provisions of this
Article at the end of the term as expressed herein. Tenant's obligation to
observe or perform this covenant shall survive the expiration or other
termination of the term of this lease. If the last day of the term of this
lease or any renewal hereof falls on a Sunday or a legal holiday this lease
shall expire on the business day immediately preceding.

                                 QUIET ENJOYMENT

28.  Landlord covenants and agrees with Tenant that upon Tenant paying the
rent and additional rent and observing arid performing all the terms,
covenants and conditions on Tenant's part to be observed and performed,
Tenant may peaceably and quietly enjoy the Demised Premises during the term
of this lease without hindrance or molestation by anyone claiming by or
through Landlord subject, nevertheless, to the terms, covenants and
conditions of this Lease including, but not limited to Article 37.

                                      SIGNS

29.  a) No sign or lettering of any nature may be put on or in any window,
nor on the exterior of the Building or elsewhere within the Demised Premises
such as shall be visible from the sweet, except with the written approval of
the Landlord.

     b) Notwithstanding the aforementioned in paragraph 29 (a) above, upon
receiving Landlord's approval which approval shall not be unreasonably
withheld or delayed, Tenant shall have the exclusive right to erect/post one
(1) sign on each side of the Building, one (I) sign on the rear of the
Building. Tenant shall not erect/post any sign(s) on the front of the
Building. In addition hereto, Tenant shall have the exclusive right to
erect/post one (1) sign in the ground level of the Building. Tenant must
provide Landlord with a design/sketch of the sign(s) to be erected, which
said sign(s) Landlord shall permit Tenant to install upon Landlord's
approval, on the rear, and both sides of the exterior of the Building signs
identifying Tenant. Tenant will be solely responsible for the fees and costs
associated with erecting the sign on the exterior of the Building and for the
future removal of the sign, if any, if and when the Tenant ceases to occupy
the Demised Premises at the Building

     c) Tenant's sign(s) shall not exceed the dimensions of the existing
signs on the Building, i. e. that of the Long Island Savings Bank, Omnipoint
Communications and Enterprise Rent-A-Car.

<PAGE>

     d) Tenant, after complying with the provisions of 29 (a & b) above,
shall have the right to install an illuminated rotating sign on the roof of
the Building. The location of this rotating sign will be restricted to the
roof of the mechanical/elevator room located on the roof of the Building.

     e) Tenant shall have the right to maintain all of such signs in their
approved locations during the term of this Lease and Landlord shall not grant
any rights to any other tenant of the Building or any third party which would
interfere with the visibility of any such sign

                              RULES AND REGULATIONS

30.  Tenant and Tenant's agents, employees, invitees, and licensees shall
faithfully comply with the Rules and Regulations set forth on Schedule "E"
annexed hereto and made part hereof, and with such further reasonable Rules
and Regulations as Landlord at any time may make and communicate in writing
to Tenant which, in Landlord's reasonable judgement shall be necessary for
the reputation, safety, care or appearance of the Building and the land
allocated to it or the preservation of good order therein, or the operation
or maintenance of the Building, and such land, its equipment, or the more
useful occupancy or the comfort of the tenants or others in the Building.
Landlord shall not be liable to Tenant for the violation of any of said Rules
and Regulations, or the breach of any covenant or condition in any lease by
any other tenant in the Building, provided such are applied in an equal and
non-discriminatory manner. In the event of a conflict between this Lease and
the Rules and Regulations, terms of this Lease shall prevail. Landlord shall
not enforce any of the Rules and Regulations in a manner discriminatory to
Tenant.

                            ASSIGNMENT AND SUBLETTING

31.  (A) Tenant, for itself, its successors and assigns, expressly covenants
that it shall not assign, mortgage or encumber this Agreement nor under let
the Demised Premises or any part thereof or license or permit the Demised
Premises or any part thereof to be used by others, without the prior written
consent of the Landlord, such consent not to be unreasonably withheld or
delayed in each instance and upon due compliance with the provisions of this
Article 31.

     (B) The Tenant shall have no right to assign this Lease or sublet all or
any portion of the Demised Premises for a period of less than one (1) year,
unless assignment or subletting is to an affiliate entity.

     (C) Prior to requesting the approval of Landlord to an assignment or
subletting as herinafter provided, Tenant shall offer to terminate this lease
as of the last day of calendar month which is at least sixty (60) days from
the date of Tenant's notice, during the term hereof, which day shall be prior
to the effective date of such proposed assignment or subletting and to vacate
and surrender the Demised Premises to Landlord. Simultaneously with said
offer to terminate this lease, Tenant shall advise the Landlord of all the
terms, covenants and conditions of the Tenant's proposed sublease or
assignment. A sublease of less than 40% of the Demised Area shall not

<PAGE>

give rise to Landlord's recapture rights herein. The provisions of this
subsection 30 (c) shall not be applicable during the initial term of this
Lease, provided (i) in the case of a sublease(s) in excess of forty (40%)
percent of the demised Area, fifty (50%) percent of all rent and additional
rent received by Tenant for sublease(s) in excess of the rent and additional
rent received herein, shall be paid to Landlord within fifteen (15) days of
receipt, as additional rent, and (ii) in the case of an assignment, fifty
(50%) percent of any consideration paid to Tenant for said assignment, except
that which is paid for Tenant's furniture, fixtures, equipment leasehold
improvements and goodwill shall be paid to Landlord within fifteen (15) days
of receipt. In either of the foregoing cases, Tenant shall first deduct its
expenses, including brokerage fees, before submitting to Landlord

     (D) With respect to any proposed subtenant or assignee who is not an
"Affiliated Entity" (as defined below) Tenant shall submit to Landlord the
most recent fiscal year's financial statements of such entity as well as a
description of the business of the entity. Upon Tenant's due compliance with
the aforesaid provisions of this Article 31, Landlord agrees not to
unreasonably withhold its consent to an assignment or subletting) provided
that the Tenant is not then in default beyond any cure period under this
Lease and that the proposed assignee or undertenant is (a) financially
responsible (b) credit worthy and (c) of good reputation.

     (E) No such assignment shall be effective until duplicate originals of
such Assignment and Assumption Agreement wherein Assignee agrees to perform
all the obligations of the Tenant under this lease in form appropriate for
recording and delivered to Landlord.

     (F) No sub-letting of the Demised Premises shall release or discharge
the Tenant hereunder from any of its obligations to be performed under this
Lease, unless otherwise agreed upon by the parties herein. Any assignment of
the Lease approved by Landlord shall release Tenant from all obligations
arising from and after the effective date of such assignment.

     (G) Notwithstanding anything contained in this Lease to the contrary)
Landlord shall not be obligated to entertain or consider any request by
Tenant to consent to any proposed assignment of this Lease or sublease unless
each request by Tenant is accompanied by non-refundable fee by certified
check not to exceed $1,500.00 to cover Landlord's reasonable legal fees and
related costs to process the proposed assignment. Neither Tenant's payment
nor Landlord's acceptance of the foregoing fee shall be construed to impose
any obligation whatsoever upon Landlord to consent to Tenant's request.

     (H) Notwithstanding anything to the contrary herein, Tenant may (i)
assign this Lease to any successor by merger, purchase, reorganization,
acquisition or consolidation, subsidiary, parent or affiliate (hereinafter
called collectively "Affiliated Entity ) provided that a copy of said
assignment, in recordable form, is delivered to the Landlord containing full
assumption by the assignee of all the Tenant's obligations hereunder) or (ii)
sublease the Demised Premises or any portion thereof to an Affiliated Entity.

                          LANDLORD'S ACCESS TO PREMISES

<PAGE>

32.  (A) Landlord or Landlord's agents shall have the right to enter and/or
pass through the Demised Premises at all times after reasonable notice and
during normal business hours and accompanied by Tenant; except in an
emergency) to examine the same, and to show them to mortgagees, ground
lessors, prospective purchasers or lessees or mortgagees of the Building, and
to make such repairs, improvements or additions as Landlord may deem
necessary and Landlord shall be allowed to make all material into and upon
and/or through said Demised Premises that may be required therefore, provided
thc same does not interfere with Tenant's business operation. During the six
months prior to the expiration of the term of the this lease, or any renewal
term, Landlord may exhibit, upon notice, the Demised Premises to prospective
tenants or purchasers at all reasonable hours and without unreasonably
interfering with Tenant's business. If 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 in an emergency, Landlord or
Landlord's agents may enter the same by a master key without rendering
Landlord or such agent liable therefore (if during such entry Landlord or
Landlord's agents shall accord reasonable care to Tenant's property) Landlord
shall not have access to secure areas designated by Tenant, as such, except
in an emergency.

     (B) Landlord shall also have the right at any time, to change the
arrangement and/or location of entrances or passageways, doors and doorways,
and corridors, elevators, stairs, toilets and other public parts of the
Building, provided, however, the Landlord shall make no change in the
arrangement and/or location of entrances or passageways or other public parts
of the Building which will adversely affect in any manner Tenant's use and
enjoyment of the Demised Premises as set forth in Article 4 herein and
provided the same does not diminish Tenant's usable area or obstruct Tenants
access to the Demised Premises, or visibility of the Demised Premises

     (C) Provided the Landlord complies with the terms hereof, the exercise
by Landlord or its agents of any right reserved to Landlord in this Article
32 shall not constitute an actual or constructive eviction, in whole or in
part, or entitle Tenant to any abatement or diminution of rent, or relieve
Tenant from any of its obligations under this Lease, or impose any liability
upon Landlord, or its agents, or upon any lessor under any ground or
underlying lease, by reason of inconvenience or annoyance to Tenant, or
injury to or interruption of Tenant's business, or otherwise Landlord agrees
to use its best efforts to minimize interference with Tenant's business

SUBORDINATION

33.  (A) Subject to the delivery of the Subordination and Non-Disturbance
Agreement described below, this Lease is subject and subordinate in all
respects to all ground leases and/or underlying leases and to all first
mortgages which may now be placed on or affect such leases and/or the real
property of which the Demised Premise forms a part, or any part of parts of
such real property and/or Landlord's interest or estate therein, and to each
advance made and/or hereafter to be made under any such mortgages, and to all
renewals, modifications, consolidations, replacements and extensions thereof.
In confirmation of such subordination, Tenant shall execute and deliver
promptly any reasonable certificate that Landlord and or any mortgagee and/or
the lessor under any ground or underlying lease and/or their respective
successors in interest may reasonably request subject to the delivery of the
Subordination and Non-Disturbance Agreement referred to

<PAGE>

below. A Subordination Non-Disturbance Agreement in form and content
reasonably satisfactory to Tenant shall be delivered by all current and
future mortgagees and ground lessors, as a precondition to such subordination.

     (B) Without limitation of any of the provisions of this Lease, in the
event that any mortgagee or its assigns shall succeed to the interest of
Landlord or of any successor Landlord and/ shall have become lessee under a
new ground or underlying lease then, this Lease shall nevertheless continue
in full force and effect and Tenant shall and does hereby agree to attorn to
sorb mortgagee or its assigns and recognize such mortgagee or its respective
assigns as its Landlord provided A Subordination Non-Disturbance Agreement
was received.

     (C) Tenant shall, at any time and from time to time upon not less than
fifteen (15) days prior notice by Landlord, execute, acknowledge and deliver
to 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 is in full force and effect as modified and stating the modification and
the dates to which the rent, additional rent and other charges have been paid
in advance, if any, and stating whether or not to the best knowledge of the
signer of such certificate that Landlord is in default in performance of any
covenant; agreement, term, provision or condition contained in this lease,
and if so, specifying each such default of which the signer may have
knowledge, it being intended that any such statement delivered pursuant
hereto may be relied upon by any mortgagee, prospective purchaser or lessee
of said real property or any interest or estate therein, any prospective
mortgagee thereof or any prospective assignee of any mortgage thereof.

                       PROPERTY LOSS, DAMAGE REIMBURSEMENT

34.  (A) Landlord or its agents shall not be liable for any damage to
property of Tenant or of others entrusted to employees of the Building, nor
for the loss of or damage to, any property of Tenant by theft or otherwise,
unless caused by negligence or misconduct of Landlord, its agents,
contractors, servants and/or employees. Landlord or its agents shall not be
liable for any injury or damage to persons or property resulting from fire,
explosion, falling plaster, steam, gas, electrical, electrical disturbance,
water, rain or snow or leaks from any part of the Building or from the pipes,
appliances or plumbing works or from the roof, street or subsurface or from
any other place or by dampness or by any other cause whatsoever nature,
unless caused by or due to the negligence or willful misconduct of Landlord,
its agents, servants, contractors or employees; nor shall Landlord or its
agents be liable for any such damage caused by other tenants or persons in
the Building or caused by operations of construction or any private, public
or quasi-public work. If at any time any windows of the Demised Premises are
temporarily closed or darkened incident to or for the purpose of repair,
replacement, maintenance and/or cleaning in, on or about the Building or any
part or parts thereof Landlord shall not be liable for any damage Tenant may
sustain thereby and Tenant shall not be entitled to any compensation
therefore nor abatement of rent nor shall the same release Tenant from
obligations hereunder nor constitute an eviction, provided Landlord uses its
best efforts to restore the same, unless caused by Landlord, agent employee
or contractor negligence. Tenant shall reimburse and compensate Landlord as
additional rent for all expenditures made by, or damages or fines sustained
or incurred by

<PAGE>

Landlord due to Tenant's non-performance or non compliance with or breach or
failure to observe any term, covenants or conditions of this Lease, on
Tenant's part to be kept, observed, performed or complied with, after notice
to Tenant with an opportunity to cure. Landlord shall reimburse and
compensate Tenant for all expenditures made by, or damages or fines sustained
or incurred by Tenant due to nonperformance of or non-compliance with or
breach or failure to observe any terms, covenants or conditions of this tease
on Landlord's part to be kept, observed, performed or complied with, after
notice to Landlord, with an opportunity to cure. Tenant shall give prompt
notice to Landlord in case of fire or accidents in the Building or of defects
therein or in any fixtures or equipment of which Tenant has knowledge,
provided no liability or obligation shall be imposed upon Tenant for failure
to so notify Landlord with respect to the Building and not the Demised
Premises.

                               TENANT'S INDEMNITY

     (B) Except if caused by negligence or willful act of Landlord, its
agents, contractors or employees, Tenant shall indemnify and hold harmless
Landlord against and from any and all claims by or on behalf of any person or
persons, firm or firms, corporation or corporations arising from the omission
of any Tenant work or thing whatsoever done by Tenant (other than by Landlord
or its contractors or the agents or employees of either) in and on the
Demised Premise during the term of this Lease and during the period of time,
if any, prior to the specified commencement date that Tenant may have been
given access to the Demised Premises for the purpose of making installations,
and will further indemnify and save harmless Landlord against and from any
and all claims arising from any condition of the Demised Premises due to or
arising from any willful misconduct or breach of Lease or negligence of
Tenant or any of its agents, contractors servants, employees, licensees or
invitees and against and from all reasonable costs, expenses, and liabilities
incurred in connection with any such claim or claims or action or proceeding
brought thereon; and in case any action or proceeding be brought against
Landlord by reason of any such claim Tenant, upon notice from Landlord,
agrees that Tenant, at Tenant's expense will resist or defend such action or
proceeding and will employ counsel therefore

                              LANDLORD'S INDEMNITY

     (C) Except if caused by negligence or willful act of Tenant, its agents,
contractors, employees or invitees, Landlord shall indemnify and save
harmless Tenant against and from any and all claims by or on behalf of any
person or persons, firm or firms, corporation or corporations arising from
the omission of any Landlord work or thing whatsoever done by Landlord (other
than by Tenant or its agents, contractors or employees of either) in and on
the Demised Premises, the common areas and the Building during the term of
this Lease and during the period of time, if any, prior to the specified
commencement date that Landlord may have had access to the Demised Premises
for the purpose making installations, and will further indemnify and save
harmless Tenant against and from any and all claims arising from any
condition of the Demised Premises due to or arising from any willful
misconduct or breach of Lease or negligence of Landlord or any of its agents,
contractors or employees and against and from all reasonable costs, expenses,
and liabilities incurred in connection with any such claim or claims or
action or proceeding brought thereon, and in case any action or proceeding be
brought against

<PAGE>

Tenant by reason of such claim, Landlord, upon nonce from Tenant, agrees that
Landlord, at Landlord's expense will resist or defend such action or
proceeding and will employ counsel therefore

                      DESTRUCTION - FIRE OR OTHER CASUALTY

35.  If the Demised Premises shall be damaged by fire or other casualty
Landlord, at Landlords expense, shall promptly repair such damage but in all
events, within 120 days of fire or casualty to substantially the same
condition as existed prior to such casualty. However, Landlord shall have no
obligation to repair any damage to, or to replace, Tenant's personal property
or any other property or effect of Tenant except if such fire or casualty was
caused by the negligence or willful misconduct of Landlord or its agents,
contractors or employees. If the entire Demised Premises shall be rendered
untenantable by reason of any such damage, the rent and additional rent shall
abate for the period from the date of such damage to the date when such
damage shall have been repaired, and if only a part of the Demised Premises
shall be so rendered untenantable, the rent and additional rent shall abate
for such period in the proportion which the area of the part of the Demised
Premises so rendered untenantable bears to the total area of the Demised
Premises. However, if, prior to the date when all of such damage shall have
been repaired any part of the Demised Premises so damaged shall be rendered
tenantable and shall be used or occupied by Tenant or any person or persons
claiming through or under Tenant, the amount by which the rent and additional
rent shall abate shall be equitably apportioned for the period from the date
of any such use or occupancy to the date when all such damage shall have been
repaired. Tenant hereby expressly waives the provisions of Section 227 of the
New York Real Property Law and of any successor law of like import then in
force and Tenant agrees that the provision of this Article shall govern and
control in lieu thereof. Notwithstanding the foregoing provisions of this
Section, if, prior to or during the Demised Term (i) the Demised Premises
shall be totally damaged or rendered wholly untenantable by fire or other
casualty, and if Landlord shall decide not to restore the Demised Premises,
or (ii) the Building shall be so damaged by fire or other casualty that total
alteration, demolition or reconstruction of the Building shall be required,
such that restoration would take 120 days or more (whether or not the Demised
Premises shall be damaged or rendered untenantable), then, in any such
events, Landlord, at Landlord's option, may give to Tenant within forty-five
(45) days after such fire or other casualty, a thirty (30) days notice of
termination of this lease and, in the event such notice is given, this Lease
and the Demised Term shall come to an end and expire (whether or not said
term shall have commenced) upon the expiration of said thirty (30) days with
the same effect as if fire date of expiration of said thirty (30) days were
the Expiration Date, the rent and additional rent shall be apportioned and
any prepaid portion of rent and additional rent for any period after such
date shall be refunded by Landlord to Tenant

     In the event that the Demised Premises shall be damaged to such an
extent that (i) Tenant reasonably determines that they cannot be restored
within ninety (90) days of the occurrence of such damage, or ii) if Landlord
does not restore the Demised Premise within said ninety (90) days to
substantially the same condition as existed prior to the casualty, Tenant
shall have the option of canceling this Lease, on notice to landlord, at the
end of such ninety (90) day period, or immediately under (i).

<PAGE>

                                   SUBROGATION

36.  Each of the parties hereto and their successors or assigns hereby waives
any and all rights of action against the other party hereto which may
hereafter arise for damage to the premises or to property therein resulting
from any fire or other casualty of the kind covered by standard fire
insurance policies with extended coverage, carried by such respective
parties. Both parties agree to obtain and maintain a waiver of subrogation
from their respective carrier and to carry insurance covering their
respective interests in the Building and the Demised Premises.

                                 EMINENT DOMAIN

37.  (A) In the event that the whole of the Demised Premises or access
thereto or a material part of the parking area is taken without substitution
of comparable parking space located within a three (3) block radius of the
Building, shall be lawfully condemned or taken in any manner for any public
or quasi-public use, this Lease and the term and estate hereby granted shall
forthwith cease and terminate as of the date of vesting of title. In the
event that a material part of the Demised Premises shall be so condemned or
taken, then effective as of the date of vesting of title, rent and additional
rent hereunder shall be abated in an amount thereof apportioned according to
the area of the Demised Premises so condemned or taken. In the event that a
material part of the Building (in excess of 40%) shall be so condemned or
taken, then (a) Landlord (whether or not the Demised Premises be affected)
may, at its option terminate this Lease and the term and estate hereby
granted as of the date of such vesting of title by notifying Tenant in
writing of such termination within forty-five (45) days following date on
which Landlord shall have received notice of vesting of title, and (b) if
such condemnation or taking shall be of a substantial part of the Demised
Premises (in excess of 25% of the Demised Premises) or a substantial part
(25% or more) of the means of access thereto or of the parking, Tenant shall
have the right, by delivery of notice in writing to Landlord within sixty
(60) days following the date on which Tenant shall have received notice of
vesting of title, to terminate this Lease and the term and estate hereby
granted as of the date of vesting of title or, (c) if neither Landlord nor
Tenant elects to terminate this Lease, as aforesaid, this Lease shall be and
remain unaffected by such condemnation or taking, except that the rent and
additional rent shall be abated to the extent, if any, herein above provided
in this Article 36. In the event that only a part of the Demised Premises
shall be so condemned or taken and this Lease and the term and estate hereby
granted are not terminated as hereinbefore provided, Landlord will, at its
expense, promptly (but lii all events in less than 120 days) restore the
remaining portion of the Demised Premises as nearly as practicable to the
same condition as it was in prior to such condemnation or taking. In the
event Landlord fails to restore the Demised Premises, Tenant shall have the
right, upon ten (10) days' notice to Landlord, to terminate this Lease.

     (B) In the event of a termination in any of the cases herein above
provided, this lease and the term and estate granted shall expire as of the
date of such termination with the same effect as if that were the date
hereinbefore set forth for the expiration of the term of this Lease, and the
rent and additional rent hereunder shall be apportioned as of such date.

     (C) In the event of any condemnation or taking herein above mentioned of
all or a part of the Building, Landlord shall be entitled to receive the
entire award made for the value of the

<PAGE>

estate vested by this Lease in Tenant, except that the Tenant may file a
claim for any taking of removable fixtures owned by Tenant and for moving
expenses incurred by Tenant.

                                      WASTE

38.  Tenant will not do or suffer any waste or damage, disfigurement or
injury to the Building or any part thereof.

                            CERTIFICATE OF OCCUPANCY

39.  Tenant will not at any time use or occupy the Demised Premises in
violation of the Certificate of Occupancy (temporary or permanent) issued for
the Building or portion thereof of which the Demised Premises form a part. If
Tenant does not use the premises in accordance with the Certificate of
Occupancy, such shall constitute a default hereunder upon notice of default
and fifteen (15) days notice to cure. This Article is without prejudice to
Landlord's rights by reason of Tenant's default or as otherwise set forth
herein and without obligation on the part of the Landlord to recompense
Tenant. Nothing herein this Article 39 shall relieve Tenant of its obligation
to pay base rent and additional rent for the term hereof.

     Landlord represents that the permitted use described in paragraph four
(4) does not violate the Certificate of Occupancy and will furnish a copy of
same to Tenant.

                                     DEFAULT

40.  (A) Upon the occurrence, at any time prior to or during the Demised Term
of any one or more of the following events (referred to as "Events of
Default"):

     (i)   If Tenant shall default in the payment when due of any installment
of rent or in the payment when due of any additional rent, and such default
shall continue for a period of fifteen (15) days after notice by Landlord to
Tenant of such default; or

     (ii)  If Tenant shall default in the observance or performance of any
term, covenant or condition of this Lease on Tenant's part to be observed or
performed (other than the covenants for the payment of rent and additional
rent) and Tenant shall fail to remedy such default within thirty (30) days
after notice by Landlord to Tenant of such default, or if such default is of
such a nature that it cannot be completely remedied within said period of
thirty (30) days and Tenant shall not commence curing such default within
said period of thirty (30) days, or shall not thereafter diligently prosecute
to completion all steps necessary to remedy such default; or

     (iii) If Tenant shall file a voluntary petition in bankruptcy or
insolvency, or shall be adjudicated bankrupt or become insolvent or shall
file any petition seeking any reorganization, arrangement, composition,
readjustment, liquidation dissolution or similar relief under the present or
any future federal bankruptcy act or any other present or future applicable
federal, state or other statute of law, or shall make an assignment for the
benefit of creditors or shall seek or consent to, or acquiesce in the
appointment of any trustee, receiver or liquidator of Tenant or of all or any
part of Tenant's property; or

<PAGE>

     (iv)  If within seventy-five (75) days after the commencement of any
proceeding against Tenant, whether by the filing of a petition or otherwise
seeking any reorganization, arrangement composition, liquidation, dissolution
or further relief under the present or any future federal bankruptcy act or
any other present or future applicable federal, state or other statute or
law, such proceedings shall not have been dismissed, or if within
seventy-five (75) days after the appointment of any trustee, receiver or
liquidator of Tenant or of all or any part of Tenant's property, without the
consent or acquiescence of Tenant such appointment shall not have been
vacated or otherwise discharged, or if any execution or attachment shall be
issued against Tenant or any of Tenants property pursuant to which the
Demised Premises shall be taken or occupied or attempted to be taken or
occupied and not dismissed within seventy-five (75) days; or

     (v)   If the Demised Premises shall become vacant, deserted or abandoned
and Tenant ceases to pay rent; or

     (vi)  If Tenant's interest in this Lease shall devolve upon or pass to
any person, whether by operation of law or otherwise, except as expressly
permitted under Article 31; then upon the occurrence, at any time prior to or
during the Demised Term, of any one or more of such Events of Default,
Landlord, at any time thereafter, at Landlord's option, may give to Tenant a
five (5) days notice of termination of this Lease after fifteen (15) days
notice to cure said default during which period there was no cure and, in the
event such notice is given, this Lease and the Demised Term shall come to an
end and expire (whether or not said term shall have commenced) upon the
expiration of said five (5) days with the same effect as if the date of
expiration of said five (5) days were the Expiration Date but Tenant shall
remain liable for damages as provided in Article 43

     Any monies received by Landlord from or on behalf of Tenant during the
pendency of any proceeding of the types referred to in said subsections (iii)
and (iv) shall be deemed paid as compensation for the use and occupancy of
the Demised Premises and the acceptance of any such compensation by Landlord
shall not be deemed a waiver on the part of Landlord of any rights under this
Article 40

     (B) In the event Landlord shall default in the performance of or
observance of any material term, covenant or condition of this lease on
Landlord's part to be performed and Landlord shall fail to remedy such
default within thirty (30) days after notice by Tenant to Landlord of such
default, or if such default is of such a nature that it cannot be completely
remedied within said period of thirty (30) days and landlord shall not
commence curing such default within such thirty (30) days, or shall not
thereafter diligently prosecute to completion the cure of such default then,
in such event, Tenant shall have the right to pursue whatever remedies it may
have under this Lease or all rights and remedies at law or in equity to which
Tenant may be entitled

41.  (A) 1f Tenant shall default in the payment when due of any installment
of rent or in the payment when due for any additional rent and such default
shall continue for a period of fifteen (15) days after notice by Landlord to
Tenant of such default or if this Lease and the Demised Term shall expire and
come to an end as provided in this Article 41.

<PAGE>

      i. Landlord and its agents and servants may immediately or at any time
after such Event of Default or after the date upon which the Lease and the
Demised Term shall expire and come to an end, re-enter the Demised Premises
or any part thereof, with notice, only by summary proceedings or by any other
applicable action or proceeding and after obtaining an order of a court of
competent jurisdiction authorizing same, and may repossess the Demised
Premises and dispossess Tenant and any other persons from the Demised
Premises and remove any and all of their property and effects from the
Demised Premises; and

      ii. Landlord at Landlord's option, may relet the whole or any part or
parts of the Demised Premises from time to time either in the name of
Landlord or otherwise, to such tenant or tenants, for such term or terms
ending before, on or after the Expiration Date at such rental or rentals and
upon such other conditions, which may include concessions and free rent
periods, as Landlord, in its reasonable discretion, may determine. Landlord
shall have use commercially reasonable efforts to relet the Demised Premises
or any part thereof but shall in no event be liable for refusal or failure to
relet the Demised Premises or any part thereof, where such refusal was
commercially reasonable under the circumstances, or, in the event of any such
reletting, for refusal or failure to collect any rent due upon any such
reletting, and no such refusal or failure shall operate to relieve Tenant of
any liability under this Lease where such refusal was commercially reasonable
under the circumstances. Provided Landlord treats the Demised Premises, like
the balance of its available space inventory, Landlord at Landlord's option,
may make such repairs, replacements, alterations, additions, improvements,
decorations and other physical changes in and to the Demised Premises as
Landlord, in its reasonable discretion considers advisable or necessary in
connection with any such reletting without relieving Tenant of any liability
under this Lease or otherwise affecting any such liability. Landlord shall
use commercially reasonable efforts to relet the Demised Premises.

     (B) Tenant, on its own behalf and on behalf of all persons claiming
through or under Tenant, including all creditors, does hereby waive any and
all rights which Tenant and all such persons might otherwise have under any
present or future law to redeem the Demises Premises, or to reenter or
repossess the Demised Premises, or to restore the operation of this Lease,
after (i) Tenant shall have been dispossessed by a judgement or by warrant of
any court or judge or (ii) and re-entry by Landlord, or (iii) any expiration
or termination of this Lease and the Demised Term, whether such dispossess,
re-entry, expiration or termination shall be by operation of law or pursuant
to the provisions of this Lease.

                                   SPRINKLERS

42.  Anything elsewhere in this Lease to the contrary notwithstanding, if the
New York Board of Fire Underwriters or New York Fire Insururance Exchange or
any bureau, department, official of the federal, state or city government
require the installation of a sprinkler system or that any changes,
modifications, alterations, or additional sprinkler heads or other equipment
be made or supplied in an existing sprinkler system solely by reason of
Tenant's business, or if any such sprinkler system installations changes,
modifications, alterations, additional sprinkler heads or other such
equipment become necessary to prevent the imposition of a penalty or charge
against the full allowance for a sprinkler system in the fire insurance rate
set by any said Exchange or

<PAGE>

any fire insurance company, Tenant shall, at Tenant's expense, promptly make
such sprinkler system installations, change, modifications, alterations, and
supply additional sprinkler heads or other equipment as required.

                                     DAMAGES

43.  (A) If this Lease and the Demised Term shall expire and come to an end
as provided in Article 27 or by or under any summary proceeding, or any other
action or proceeding or if Landlord shall re-enter the Demised Premises as
provided in Article 40 by or under any summary proceedings or any other
action or proceeding then in any of said events:

      i. Tenant shall pay to Landlord all rent, additional rent and other
charges payable under this Lease by Tenant to Landlord to the date upon which
this Lease and the Demised Term shall have expired and come to an end or to
the date of re-entry upon the Demised Premises by Landlord, as the case
maybe; and

     ii. Tenant shall also be liable for, and shall pay to Landlord, as
liquidated and agreed final damages, any deficiency (referred to as
"Deficiency") which is the sum equal to the amount by which the rent and
additional rent reserved in the Lease for the period which otherwise would
have constituted the unexpired portion of the Demised Term (excluding any
unexercised extension option) exceeds the net amount, if any, of rents
collected under any re letting effected pursuant to the provision of Section
41(A) for any part of such period (first deducting from the rents collected
under any such re-letting all of Landlord's reasonable and actual expenses
regarding such re-letting including, but not limited to, all repossession
costs, brokerage commissions, reasonable legal expenses reasonable attorneys'
fees, alteration costs and other expenses of preparing the Demised Premises
for such re-letting). Any such Deficiency shall be paid in monthly
installments by Tenant on the days specified in this Lease for payment of
installments of rent. Landlord shall be entitled to recover from Tenant each
monthly Deficiency as the same shall arise, and no suit to collect the amount
of the Deficiency for any month shall prejudice Landlord's rights to collect
the Deficiency for any subsequent month by a similar proceeding.

     (B) If the Demised Premises, or any part thereof, shall be relet
together with other space in the Building, the rent collected or reserved
under any such re-letting and the expenses of any such re-letting shall be
equitably apportioned for the purpose of this Article 43. Tenant shall in no
event be entitled to any rents collected or payable under any re-letting,
whether or not such rents shall exceed the rent reserved in this Lease.
Solely for the purposes of this Article, the term "rent" as used in Section
43 A shall mean the rent in effect immediately prior to the date upon which
this Lease and the Demised Term shall have expired and come to an end, or the
date of re-entry upon the Demised Premises by Landlord, as the case may be,
plus any additional rent payable pursuant to the provisions of Article 17A
(i) immediately preceding such event.

                                SUMS DUE LANDLORD

44.  (A) If Tenant shall default after notice and the expiration of any
applicable cure period, in

<PAGE>

the performance of any covenants on Tenant's part to be performed in this
Lease contained, Landlord may immediately, or at any time thereafter, after
thirty (30) days notice, perform the same for the account of the Tenant,
except in an emergency. If Landlord at any time is compelled to pay or elects
to pay any sum of money, or do any act which will require the payment of any
sum of money, by reason of the failure of Tenant to comply with any provision
hereof, or, if Landlord is compelled to do or does incur any reasonable
expense including reasonable attorney's fees, instituting, prosecuting and/or
defending any action or proceeding instituted by reason of any default of
Tenant hereunder, the sum or sums so paid by Landlord with all interest and
reasonable costs, shall be deemed to be additional rent hereunder and shall
be due from Tenant to Landlord on the first day of the month following the
incurring of such respective expenses, or at Landlords option on the first
day of any subsequent month. Any sum of money (other than rent) accruing from
Tenant to Landlord pursuant to Schedule "C", whether prior to or after the
Term Commencement Date, may, at Landlord's option, be deemed additional rent,
and Landlord shall have the same remedies for Tenant's failure to pay any
item of additional rent when due as for Tenants failure to pay any
installment of rent when due. Tenant's obligations under this Article shall
survive the expiration or sooner termination of the Demised Term. In any case
in which the base rent or additional rent is not paid within fifteen (15)
days of notice that it was not paid upon the day when same is due, Tenant
shall pay a late charge equal to 5 cents for each dollar so due

     (B) If Landlord shall default, after notice from Tenant and the
expiration of thirty (30) days, except in the event of an emergency, in which
case Tenant shall only be obligated to provide such notice as is reasonable
under the circumstances, in any of its obligations or covenants on Landlord's
part to be performed in this Lease contained, Tenant may immediately (but
shall be under no obligation to) perform the same for the account of
Landlord. If Tenant at any time is compelled to pay or elects to pay any
reasonable sum of money by reason of failure of Landlord to comply with any
provision hereof, or if Tenant is compelled to do or does incur any
reasonable expense including reasonable attorneys fees instituting,
prosecuting and/or defending any action or proceeding instituted by reason of
a default by Landlord hereunder, the sum or sums shall be due from Landlord
to Tenant on the first day of the month following the incurring of such
expenses and Tenant shall have the right to offset such amounts against the
next installments of basic rent due and payable hereunder. Landlord's
obligations hereunder shall survive the expiration or termination of this
Lease. Amounts not paid to Tenant hereunder within fifteen (15) days of the
due date shall bear interest at Lease Interest Rate.

                                    NO WAIVER

45.  (A) No act or thing done by Landlord or Landlord's agents during the
term hereby demised shall be deemed an acceptance or surrender of said
Demised Premises and no agreement to accept such surrender of the Demised
Premises shall be valid unless in writing signed by Landlord. No employee of
Landlord or of Landlord's agents shall have any power to accept the keys of
said Demised Premises prior to the termination of this Lease. The delivery of
keys to any employee of Landlord or of Landlord's agents shall not operate as
a termination of this Lease or a surrender of the Demised Premises. In the
event of Tenant at any time desiring to have Landlord under let the Demised
Premises for Tenant's account, Landlord or Landlord's agents are authorized
to receive

<PAGE>

said keys for such purposes without releasing Tenant from any liability for
loss of or damage to any of Tenants effects in connection with such under
letting, except if due to Landlord negligence. The failure of either party to
seek redress for violation of, or to insist upon the strict performance of,
any covenants or conditions of this Lease, or any of the Rules and
Regulations annexed hereto and made part hereof or hereafter reasonably
adopted by Landlord, shall not prevent a subsequent act, which would have
originally constituted a violation, from having all the force and effect of
an original violation. The failure by Landlord to enforce any of the Rules
and Regulations annexed hereto and made part hereof, or hereafter reasonably
adopted, against Tenant and/or any other tenant in the Building shall not be
deemed a waiver of any such Rules and Regulations. No provision of this Lease
shall be deemed to have been waived by Landlord or Tenant, unless such waiver
be in writing signed by Landlord and Tenant. No payment by Tenant or receipt
by Landlord of a lesser amount than the monthly rent herein stipulated shall
be deemed to be other than on account of the earliest stipulated rent nor
shall any endorsement or statement on any check or any letter accompanying
any check or payment as rent be deemed an accord and satisfaction, and
Landlord may accept such 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.

     (B) Landlord's failure to timely render a Landlord's Statement with
respect to any Escalation Year Per Article 18 shall not prejudice Landlord's
right to render a Landlord's Statement with respect to any Escalation Year,
provided such statement is rendered within twenty-four (24) months of the end
of the Escalation Year. The obligation of Landlord and Tenant under the
provisions of Article 18 with respect to any additional rent payable by
Tenant thereunder for any Escalation Year shall survive thc expiration or any
sooner termination of the Demised Term, for two (2) years after the term of
this Lease.

                             WAIVER OF TRIAL BY JURY

46.  To the extent such waiver is permitted by law, Landlord and Tenant
hereby waive trial by jury in any action, proceeding or counterclaim brought
by Landlord or Tenant against the other on any matter whatsoever arising out
of or in any way connected with this Lease, the relationship of Landlord and
Tenant, the use or occupancy of the Demised Premises by Tenant or any person
claiming through or under Tenant, any claim of injury or damage, and any
emergency or other statutory remedy, except personal injury claim. The
provisions of the foregoing sentence shall survive the expiration or any
sooner termination of the Demised Term. If Landlord commences any summary
proceeding for nonpayment of rent, Tenant agrees not to interpose any
non-compulsory counterclaim of whatever nature or description in any such
proceeding. Nothing herein shall prohibit Tenant from bringing a separate
action against the Landlord.

                                BILLS AND NOTICES

47.  Except as otherwise expressly provided in this Lease, any bills,
statements, notices, demands, requests or other communications given or
required to be given under this Lease shall

<PAGE>

be effective only if rendered or given in writing, sent by Registered or
Certified Mail (return receipt requested), addressed (A) to Tenants at
Tenant's address set forth in this Lease if mailed prior to Tenant's taking
possession of the Demised Premises, and to (B) Landlord at Landlord's address
set forth in this Lease, with a copy to (C) Mihos & Karabelas, Esqs., 2818
31St Street, Suite 202, Astoria, New York 11102 or (D) addressed to such
other address as either Landlord or Tenant may designate as its new address
for such purpose by notice given to the other in accordance with the
provisions of this Article. Any such bills, statements, notices, demands,
requests or other communications shall be deemed to have been rendered or
given on the date when it shall have been mailed as provided in this Article.

                              INABILITY TO PERFORM

45.  (A) If by reason of strikes or other labor disputes, fire or other
casualty, accidents orders or regulations of any Federal, State, County or
municipal authority or any other cause beyond Landlord's reasonable control,
whether or not such other cause shall be similar in nature to those
hereinbefore enumerated, Landlord is unable to furnish or is delayed in
furnishing any utility or service required to be furnished by Landlord under
the provisions of this Lease or any collateral instrument, or is unable to
perform or make or is delayed in performing or making any installations,
decorations, repairs, alterations, additions or improvements, whether or not
required to be performed or made under this Lease or under any collateral
instrument, or is unable to fulfill or is delayed in fulfilling any of
Landlord's other obligations under this Lease, or any collateral instrument,
no such inability or delay shall constitute an actual or constructive
eviction, in whole or in part or entitle Tenant to any abatement or
diminution of rent, or relieve Tenant from any of its obligations under this
Lease, or impose any liability upon Landlord or its agents by reasons of the
inconvenience or annoyance to Tenant, or injury to, or interruption of
Tenant's business, or otherwise, but only for so long a. such force majeure
conditions exist provided, however that in the event such condition renders
the Demised Premises untenantable, Tenant shall be entitled to a rental
abatement for the period in which such condition exists. If Tenant is unable
to fulfill its obligations hereunder by reason of the conditions specified in
this Section 48A Tenant shall not be deemed to be in default hereunder by
reason thereof.

                             INTERRUPTION OF SERVICE

     (B) Landlord reserves the right to stop the services of the air
conditioning, elevator, escalator, plumbing, electrical or other mechanical
systems or facilities in the Building when necessary by reason of accident or
emergency, or for repairs, alterations, replacements or improvement, which,
in the reasonable judgement of Landlord are necessary, until said repairs,
alterations, replacements or improvements shall have been completed, provided
Landlord (i) uses its best efforts to restore such services as quickly as
possible and (ii) perform such work at times and in a reasonable manner so as
to minimize interference with Tenant's business. The exercise of such rights
by Landlord shall not constitute an actual or constructive eviction, in whole
or in part, or entitle Tenant to any abatement or diminution of rent, or
relieve Tenant from any of its obligations under this Lease, or impose any
liability upon Landlord or its agents by reason of inconvenience or annoyance
to Tenant or injury to or interruption of Tenant's business or otherwise
except if due to the negligence of Landlord, its agents, contractors or
employees.

<PAGE>

Notwithstanding the aforementioned, if the interruption of services continues
for more than five (5) days, Tenant will receive a rent abatement for each
day services are interrupted. If the interruption of services continues for
more than fifteen (15) days, Tenant may cancel this Lease

                       CONDITIONS OF LANDLORD'S LIABILITY

     (C)  i. Tenant shall not be entitled to claim a constructive eviction
from the Demised Premises unless Tenant shall have First notified Landlord of
the condition or conditions giving rise thereto, and unless Landlord shall
have failed to remedy such condition within a reasonable time after receipt
of such notice,

         ii. If Landlord shall be unable to give possession of the Demised
Premises on any date specified for the commencement of the term by reason of
the fact that the premises have not been sufficiently completed to make the
premises ready for occupancy, or for any other reason which is not the fault
of the Landlord, Landlord shall not be subject to any liability for the
failure to give possession on said date, nor shall such failure in any way
affect the validity of this Lease or the obligations of Tenant hereunder.

        iii. Notwithstanding the aforementioned, in the event Landlord shall
be unable to give possession to the Demised Premises within one hundred
twenty (120) days after execution of this Lease, Tenant at its sole option
may terminate this Lease which time period shall be extended to the extent
any such delays are directly attributable to the Tenant.

                           TENANT'S TAKING POSSESSION

     (D)  i. Tenant by entering into occupancy of the premises shall be
conclusively deemed to have agreed that Landlord up to the time of such
occupancy had performed all of its obligations hereunder and that the
premises were in satisfactory condition as of the date of such occupancy,
except for latent defects, and punch list items of which Tenant shall have
given written notice to Landlord within ninety (90) days of occupancy
specifying such punch list items, all of which shall be promptly repaired by
Landlord

         ii. If Tenant shall use or occupy all or any part of the Demised
Premises for the conduct of business prior to the Term Commencement Date,
such use or occupancy shall be deemed to be under all of the terms, covenants
and conditions of this Lease, excluding the covenant to pay rent and
additional rent except those charges payable pursuant to Schedule 'C' hereof,
for the period from the commencement of said use or occupancy to the Term
Commencement Date.

                                ENTIRE AGREEMENT

49.  This Lease contains the entire agreement between the parties and all
negotiations and agreements are merged herein, except as set forth herein.
Neither party has made any representations or statements, or promises, upon
which the other has relied regarding any matter or thing relating to the
Building, (including the parking area) or the Demised Premises, or any other
matter whatsoever, except as is expressly set forth in this Lease, including
but without limiting the

<PAGE>

generality of the foregoing, any statement, representation or promise as to
the fitness of the Demised Premises for any particular use, the services to
be rendered to the Demised Premises or the prospective amount of any item of
additional rent. No oral statement, representation or promise whatsoever with
respect to the foregoing or any other matter made by Landlord or Tenant,
their agents or any broker, whether contained in an affidavit, information
circular, or otherwise shall be binding upon the Landlord or Tenant unless
licenses are or shall be acquired by Tenant by implication or otherwise or
unless expressly set forth in this Lease. This Lease may not be changed,
modified or discharged, in whole or in part, orally and no agreement shall be
effective to change, modify or discharge, in whole or in part, this Lease or
any obligation under this Lease, unless such agreement is set forth in a
written instrument executed by the party against whom enforcement of the
change, modification or discharge is sought. All references in this Lease to
the consent or approval of Landlord shall be deemed to mean the written
consent of Landlord, or the written approval of Landlord, as the case may be,
and no consent or approval of Landlord shall be effective for any purpose
unless such consent or approval is set forth in a written instrument executed
by Landlord. Landlord's consent or approval shall in no events, under any of
the provisions of the Lease be unreasonably withheld or denied.

                            VAULT, VAULT SPACE, AREA

50.  No vaults, vault space or area, whether or not enclosed or covered, not
within the property line of the Building is leased hereunder, anything
contained in or indicated on any sketch, blueprint or plan, or anything
contained elsewhere in this Lease to the contrary notwithstanding. Landlord
makes no representation as to the location of the property line of the
Building. All vaults and vault space and all such areas not within the
property line of the Building, which Tenant may be permitted to use and/or
occupy, is to be used and/or occupied under a revocable license, and if any
such license be revoked, or if the amount of such space or area be diminished
or required by any federal, state or municipal authority or public utility
Landlord shall not be subject to any liability nor shall Tenant be entitled
to any compensation or diminution or abatement of rent, nor shall such
revocation, diminution or requisition be deemed constructive or actual
eviction. Any tax, fee or charge of municipal authorities for such vault or
area shall be paid by Tenant, provided Tenant continues to use or occupy same.

                                    SECURITY

51.  Tenant shall deposit with Landlord the sum of $80,000.00 as security for
the faithful performance and observance by Tenant of the terms, provisions
and conditions of this Lease; it is agreed that in the event Tenant defaults
in respect of any of the terms, provisions and conditions of this Lease,
including, but not limited to the payment of rent and additional rent,
Landlord may use, apply or retain the whole or any part of the security so
deposited to the extent required for the payment of any rent and additional
rent or any other sum as to which Tenant is in default or for any sum which
Landlord expended by reason of Tenant's default in respect of any of the
terms, covenants and conditions of this lease, including but not limited to,
any damages Or deficiency in the re-letting of the premises, whether such
damages or deficiency accrued before

<PAGE>

or after summary proceedings or other re-entry by Landlord. In the event that
Tenant shall fully and faithfully comply with all the terms, provisions,
covenants and conditions of this Lease, the security with the interest
thereon, if any, to which the Tenant is entitled shall be returned to Tenant
promptly after the date fixed as the end of the Lease and after delivery of
entire possession of the Demised Premises to Landlord. In the event of a sale
of the land and building or leasing of the building, of which the Demised
Premises form a part, Landlord shall have the right to transfer the security
to the vendee or lessee and Landlord shall thereupon be released by Tenant
from all liability for the return of such security; and Tenant agrees to look
solely to the new landlord for the return of said security; and it is agreed
that the provisions hereof shall apply to every transfer or assignment made
of the security to a new landlord. Tenant further covenants that it will not
assign or encumber or attempt to assign or encumber the monies deposited
herein as security and that neither Landlord nor its successors or assigns
shall be bound by any such assignment, encumbrance, attempted assignment or
attempted encumbrance. For purposes of recording security, Tenant's I.D.
number is:_______________________.

     In the event Tenant is not in default of this Lease beyond any
applicable cure period, Landlord shall apply $40,000.00 of the security
towards Tenant's rental payment due for the 13th month of this Lease.
Thereafter, if Tenant is not in default of this Lease beyond any applicable
cure period, Landlord shall apply the remaining $40,000.00 towards Tenant's
rental payment due for the 25th month of this Lease. Tenant shall pay
Landlord the difference in the rental payment due for the 13th and 25th
month(s) at the time such payments become due hereunder.

                                   DEFINITIONS

52.  The term "Landlord" as used in this Lease means only the owner, or the
mortgagee in possession, for the time being of the land and Building (or the
owner of a Lease of the Building or of the land and Building) of which the
Demised Premises form a part, so that in the event of any sale or sales of
said land and Building or of said Lease, or in the event of a lease of the
Building, or of the land and Building, the said Landlord shall be and hereby
is entirely freed and relieved of all covenants and obligations of Landlord
hereunder accruing after the date of such sale or lease, and it shall be
deemed and construed as a covenant running with the land without further
agreement between the parties or their successors in interest, or between the
parties and the purchaser, at any sale, or the lessee of the Building, or of
the land and Building, that the purchaser or the lessee of the Building
assumes and agrees to carry out any and all covenants and obligations of
Landlord hereunder. The words "re-enter" and "re-entry", and "re-entered" as
used in this Lease are not restricted to their technical legal meanings. The
term "business days" as used in this Lease shall exclude Saturdays (except
such portion thereof as is covered by specific hours in Article 5 hereof),
Sundays and all days observed by State or Federal Government as legal
holidays (which shall not include days when the New York Stock Exchange is
open for trading). The terms 'person" and "persons" as used in this Lease
shall be deemed to include natural persons, firms corporations, associations
and any other private or public entities, whether any of the foregoing are
acting on their behalf or in a representative capacity

                               PARTNERSHIP TENANT

53.  If Tenant is a partnership (or is comprised of two (2) or more persons,
individually and as

<PAGE>

co-partners of a partnership) or if Tenant's interest in this Lease shall be
assigned to a partnership (or to two (2) or more persons individually and as
co-partners of a partnership) pursuant to any provision herein, (any such
partnership and such persons are referred to in this section as "Partnership
Tenant"), the following provisions of this Section shall apply to such
Partnership Tenant; (a) the liability of each of the parties comprising
Partnership Tenant shall be joint and several and (b) each of the parties
comprising Partnership Tenant hereby consents in advance to, and agrees to be
bound by, any modifications of this Lease which may hereafter be made and by
any notices, demands requests or other communications which may hereafter be
given by Partnership Tenant or by any of the parties comprising Partnership
Tenant, and (c) any bills, statements, notices, demands, requests and other
communications given or rendered to Partnership Tenant or to any of the
parties comprising Partnership Tenant shall be deemed given or rendered to
Partnership Tenant and to all parties comprising partnership tenant and shall
be binding upon Partnership Tenant and all such parties, add (d) if
Partnership Tenant shall admit new general partners, all of such new partners
shall, by their admission to Partnership Tenant be deemed to have assumed
performance of all of the terms covenants and conditions of this Lease on
Tenant's part to be observed and performed, and (e) Partnership Tenant shall
give prompt notice to Landlord of the admission of any such new partners.

                            SUCCESSORS, ASSIGNS, ETC

54.  The covenants, conditions and agreements contained in this Lease shall
bind and inure to the benefit of Landlord and Tenant and their respective
heirs, distributees, executors, administrators, Successors, and except as
otherwise provided in this Lease their respective assigns

            APPLICATION OF INSURANCE PROCEEDS, WAIVER OF SUBROGATION

55.  In any case in which Tenant shall be obligated under any provisions of
this Lease to pay to Landlord any loss, cost, damage, liability or expense,
provided that the allowance of such offset does not invalidate or prejudice
the policy or policies, Landlord shall allow to Tenant as an offset against
the amount thereof the net proceeds of any insurance collected by Landlord
for or on account of such loss, cost, damage, liability or expense, provided
that the allowance of such offset does not invalidate or prejudice the policy
or policies under which such proceeds were payable.

                                     BROKER

56.  Both parties represent and warrant that Alma Realty Co was the sole
Broker brought about this transaction. Tenant agrees to indemnify and hold
Landlord harmless from any claims of any other Broker with respect to this
Lease. Landlord agrees to pay Broker pursuant to separate agreement and to
indemnify and hold Tenant harmless from any claims of any other broker with
respect to this Lease.

                                    CAPTIONS

57.  The captions are included only as a matter of convenience and for
reference, and in no

<PAGE>

way define, limit or describe the scope of this Lease nor the intent of any
provisions thereof.

                            NONLIABILITY OF LANDLORD

58.  If Landlord or a successor in interest is an individual (which term as
used herein includes aggregates of individuals, such as joint ventures,
general or limited partnerships or associations) such individual shall be
under no personal liability with respect to any of the provisions of this
Lease, and if such individual hereto is in breach or in default with respect
to its obligations under this Lease, Tenant shall look solely to the equity
of such individual in the land and Building of which the Demised Premises
form a part for the satisfaction of Tenant's remedies and in no event shall
Tenant attempt to secure any personal judgement against any partner, employee
or agent of Landlord by reason of such default by Landlord

                             RIGHT OF FIRST REFUSAL

59.  Provided that Tenant is not then in default of any of the covenants of
this Lease, Landlord hereby grants to Tenant during the term of this Lease,
the right of first refusal to lease from Landlord any space located in the
Building which becomes vacant and available. Tenant shall have fifteen (15)
days after notice from Landlord to accept the vacant space pursuant to
Landlord's terms and conditions which shall be no less favorable than the
terms being offered to a third party.

                                  GOVERNING LAW

60.  This Lease shall be governed by, and construed and interpreted in
accordance with, the laws of the State of New York.

                                  JURISDICTION

61.  For purposes of settling any and all disputes hereunder, each party
hereto submits itself to the personal jurisdiction of any court1 federal or
state, sitting in the State of New York, hereby waives all objections to the
venue of any such court and further hereby waives trial by jury.

     IN WITNESS WHEREOF, Landlord and Tenant have respectively signed this
Lease as of the day and year first written above

Witness for Landlord:                           Golden Union, LLC
                                                Landlord

<PAGE>

                                                by: /George Mitropoulos/
-------------------------                          ----------------------------
                                                Cooper Enterprises, Inc. Member
                                                George Mitropoulos, President

Witness for Tenant                              PHONETIME, INC.
                                                Tenant

                                                by: /Sam Tawfik/
-------------------------                          ----------------------------
                                                Sam Tawfik, CEO President<PAGE>

                                                          Exhibit 10.64

                                  OFFICE LEASE

AGREEMENT OF LEASE, MADE THE     DAY OF OCTOBER, 1997, BETWEEN EVERGREEN AMERICA
CORPORATION, a New Jersey Corporation, (hereinafter called the "Landlord") and
PT-1 COMMUNICATIONS, INC., "Tenant", as hereinafter defined.

                           ARTICLE I -- CERTAIN TERMS

         1.01 The following terms shall have the meanings set forth opposite
each of them, then provided that if "None" is set forth opposite any term, then
the provision of the Lease applicable to such term shall be considered deleted
and of no force and effect.

                "TENANT" -
                 a corporation organized under the laws of the State of New
                      York, and authorized to do business in the State of New
                      Jersey having its principal office at 30-50 Whitestone
                      Expressway, Whitestone, New York 11354

                 "TERM" --
                      The period beginning on the Commencement Date and ending
                      at noon on the Expiration Date.

                 "COMMENCEMENT DATE" --
                      January 1,  1998 or sixty (60) days from the signing of
                      this Lease, whichever is sooner.

                "EXPIRATION DATE" --
                      The last day of the calendar month in which occurs the end
                      of a ten (10) year period from the Commencement Date (if
                      the Commencement Date shall occur on a day other than the
                      first day of a calendar month such period shall run and be
                      measured from the first day of the calendar month
                      following the Commencement Date) or ending on an earlier
                      date on which this Lease may expire or be cancelled or
                      terminated pursuant to the terms of this Lease.

                 "FIXED RENT" --
                      Years One (1) through Five (5) One Hundred Forty Seven
                      Thousand Four Hundred Sixty Eight Dollars ($147,468.00)
                      per year, payable in monthly installments of $12,289.90,
                      (as adjusted in accordance with this Lease).

                      Years Six (6) through Ten (10) - One Hundred Sixty Four
                      Thousand One Hundred Sixty Dollars ($164,160.00) per year,
                      payable in monthly insta1lments of $l3,680.00, (as
                      adjusted in accordance with this Lease).

                 "BUILDING"
                      The Building located in the city of Jersey City, County of
                      Hudson and State of New Jersey and known as One Evertrust
                      Plaza, Jersey City, New Jersey.

"DEMISED PREMISES" -
                      That space on the twelfth (12th) floor of the Building
                      delineated on the floor plan attached hereto as Exhibit
                      A, the total area of which is the Tenant's Floor Space.

"TENANT'S FLOOR SPACE" --
                      The total number ot square feet of space in the Demised
                      Premises, which, for purposes of this Lease, the parties
                      agree and stipulate is 5,565 square feet.

"TOTAL BUILDING FLOOR SPACE" --
                      The total number of square feet of space in the
                      Building, which, for purposes of this Lease, the parties
                      agree and stipulate is 314,503 square feet.

"TENANT'S SHARE" --
                      1.77%; which is the percentage resulting from dividing
                      the Tenant's Floor Space by the Total Building Floor
                      Space.

"SECURITY DEPOSIT" --
                      $24,578.00 deposited pursuant to Article 15 hereof.

"PERMITTED USE" -
                      Telecommunication equipment site.

"A.C. CHARGE" --
                      $75.00 per hour for additional air conditioning pursuant
                      to Article 8.01 hereof.

<PAGE>

"H. CHARGE" --
                      $75.00 per hour additional heating pursuant to Article
                      8.01 hereof.

"BROKER" --
                      Dolan Realty, Inc. and Archie Schwartz company which
                      Tenant represents and warrants are the only Brokers with
                      whom it has dealt in this transaction, and based
                      thereupon Landlord agrees to pay a brokerage commission
                      in accordance with a separate agreement between Landlord
                      and Brokers.

"REGULAR BUSINESS HOURS" --
                      8:00 a.m. to 6:00 p.m. Monday through Friday; 8:30 a.m.
                      to l2:30 p.m. on Saturday, except where such days are
                      observed by the Federal or the New Jersey State
                      government as legal holidays, or as union holidays.

"NUMBER OF PARKING SPACES" -
                      Tenant shall have the right to lease three (3) exterior
                      parking spaces at additional rent of $125.00 for each
                      parking space, payable monthly. Notwithstanding the
                      foregoing, Landlord may increase the rent for exterior
                      parking spaces from time to time during the term of this
                      Lease after the first year of the Term of this Lease. In
                      the event Landlord builds a parking structure, Tenant's
                      parking shall be relocated to such parking structure and
                      Tenant shall have the right to lease up to the same
                      number of exterior parking spaces leased by Tenant prior
                      to the building of the parking structure at additional
                      rent as determined by Landlord for each parking space,
                      payable. monthly. Notwithstanding the foregoing,
                      Landlord may increase the rent for parking spaces in a
                      parking structure from time to time during the term of
                      this Lease after the first year of operation of the
                      parking structure.

                      1.02 Electrical energy consumed by Tenant in the Demised
                      Premises through wall and floor outlets, for lighting
                      and business equipment shall be purchased by Tenant as
                      provided in article 7.

                          ARTICLE 2 - DEMISED PREMISES

      2.01 Landlord hereby leases to Tenant, and Tenant hereby hires from
Landlord, the Demised Premises for the Term, for the rents hereinafter reserved
and upon and subject to the conditions (including limitations, restrictions and
reservations) and covenants hereinafter provided. Each party hereto agrees to
observe and perform a11 of the conditions and covenants herein contained on its
part to be observed and performed.

      2.02 The general location, substantially the size and layout of the
Demised Premises are outlined on Exhibit A, but Exhibit A shall not be deemed to
be a warranty, representation or agreement on the part of Landlord that the
Demised Premises and the Building will be exactly as indicated on exhibit A.

      2.03 Nothing herein contained shall be construed as a grant or demise by
Landlord to Tenant of the roof or exterior walls of the Building, of the space
above and below the Demised Premises, of the parcel of land on which the Demised
Premises are located, and/or of any parking or other areas adjacent to the
Building.

                ARTICLE 3 -- PREPARATION OF THE DEMISED PREMISES

      3.01 Tenant shall cause to be substantially performed all the work in the
Demised Premises as set forth in Exhibit C annexed hereto and hereby made a part
hereof (the "Work"), upon the terms and conditions specified therein, at
Tenant's sole cost and expense.

      All of Tenant's duties and obligations set forth in Article 12 (relating
to Tenant's duties and obligations in making Tenant's Changes) shall be
applicable to and binding upon Tenant with respect to any such work.

      3.02 Prior to the commencement of Tenant's work, Tenant shall furnish to
Landlord final plans, specifications and drawings for approval by Landlord,
which approval shall not be unreasonably withheld or delayed, and upon
Landlord's written approval shall be attached hereto as Exhibit C.

      3.03 Upon the signing of this Lease by all parties and the payment of the
Security Deposit, Tenant shall be allowed access to the Demised Premises to
perform Tenant's work to prepare the Demised Premises for Tenant's occupancy.

        ARTICLE 4-- WHEN DEMISED PREMISES ARE DEEMED READY FOR OCCUPANCY
                              AND COMMENCEMENT DATE

      4.01 On the Commencement Date or at such time as Tenant shall take actual
possession of the whole or part of the Demised Premises, whichever shall be
earlier, it shall be conclusively presumed that the same were as of the
Commencement Date or the date or dates of such taking of possession, in the

<PAGE>

condition in which Landlord was required to deliver the Demised Premises under
this Lease, unless within thirty (30) days after such date Tenant shall have
given Landlord notice specifying in which respects the Demised Premises were not
in satisfactory condition. However, nothing contained in this Section shall be
deemed to relieve Landlord from, and Landlord shall perform its obligation to
complete, with reasonable speed and diligence, such details of construction,
mechanical adjustment and decoration, if any, as Landlord shall be required to
perform under this Lease and as shall have been unperformed at the tine Tenant
took actual possession, but Tenant shall not be entitled to any rent abatement
on account of any such incomplete work.

     4.02 Unless the Commencement Date is a date certain specified in Article 1
hereof, on the Commencement Date Landlord and Tenant shall execute and deliver
to each other duplicate originals of a Commencement Date Statement, which shall
specify the Commencement and Expiration Dates of the Term. Upon execution and
delivery, the Commencement Date Statement shall be deemed a part of this Lease.

     4.03 If prior to the Commencement Date, Tenant shall enter the Demised
Premises to make any installations of its equipment, fixtures and furnishings,
Landlord shall have no liability or obligation for the care or preservation of
Tenant's property and Tenant shall not interfere with Landlord or Landlord's
contractors.

     4.04 Landlord agrees to provide access by the telephone company during the
course of construction to permit Tenant's installation of telephones.
Notwithstanding the foregoing, the parties agree that the failure by the
telephone company to complete the telephone installation and to provide service
on the date that the Demised Premises are otherwise substantially complete (as
hereinabove defined) or occupied by Tenant1 shall not delay or defer the
determination of the Commencement Date and the obligation to pay rent
thereafter.

                                ARTICLE 5 -- RENT

     5.01 Tenant shall pay to Landlord without notice or demand and without
abatement, deduction or set-off, in lawful money of the United States of
America, at the office of the Landlord as set forth in Article l hereof, or at
such other place as landlord may designate, the Fixed Rent reserved under this
Lease for each year of the Term, payable in equal monthly installments in
advance on the first day of each and every calendar month during the Term; and
additional rent consisting of all such other sums of money as shall become due
from and payable by Tenant to Landlord hereunder (for default in payment of
which Landlord shall have the same remedies as for a default in payment of Fixed
Rent).

     5.02 Tenant shall pay the Fixed Rent and additional rent herein reserved
promptly as and when the same shall become due and payable under this Lease and
shall be liable to the Landlord for an administrative charge of 4% for rent paid
five (5) days subsequent to the date set in Article 5.01. If the Commencement
Date shall occur on a day other than the first day of a calendar month the Fixed
Rent and additional rent shall be prorated for the period from the Commencement
Date to the last day of the said calendar month and shall be due and payable on
the Commencement Date. Notwithstanding the provisions of the next preceding
sentence, Tenant shall pay on account toward the first full calendar month
installment(s) of Fixed Rent, on the execution of this Lease, the Rent
Prepayment specified in Article 1 hereof.

     5.03 Whenever used in this Lease, the term (insofar as it pertains to this
Lease) "fixed rent", "minimum rent", "base rent", or "basic rent", or any such
term using the word "rental", "rents", or "rentals" in lieu of "rent", shall
mean Fixed Rent; and whenever used in this Lease, the term (insofar as it
pertains to this Lease) "rent", "rental", "Rent" or the plural of any of them,
shall mean Fixed Rent and additional rent.

                         ARTICLE 6 -- EXPENSE ESCALATION

     6.01 Tenant shall pay to Landlord, as additional rent, Expense Escalation
in accordance with this Article:

     A. Definitions: for the purpose of this Article, the following definitions
shall apply:

      (i) The term "Expense Base Factor" shall mean the Expenses as hereinafter
defined for the calendar year 1998.

      (ii) The term "comparative year" shall mean the full calendar year in
which the terra of this Lease commences, and each subsequent calendar year
during the Term of this Lease.

      (iii) The term "Expenses shall mean the total of all the costs and
expenses incurred or borne by Landlord with respect to the operation and
maintenance of the Building and the services provided tenants therein
including, but not limited to, the costs and expenses incurred for and with
respect to: water rates and sewer rents; air-conditioning, ventilation and
heating; any and all electricity costs for common areas, exclusive of meeting
rooms and the cafeteria; maintenance of the Building's exterior surfaces;
elevator cabs, lobby maintenance and cleaning; protection and security; lobby
decoration and interior and exterior landscape maintenance; repairs,
replacements and improvements which are appropriate for the continued
operation of the Building as a first-class office Building; maintenance;
painting of non-tenant areas; insurance; supplies; employee salaries and
benefits; administrative expenses; and the annual fee for management of the
Building.

     The term Expenses shall also include any increases in payments in lieu
of taxes or service charges that may be made by Landlord pursuant to the
Financial Agreement between Landlord and the city of Jersey City entered into
as part of the Fox Lance Tax Abatement granted to landlord for the Building
in

<PAGE>

excess of the payments made in lieu of taxes or service charges for the first
year of said tax abatement, provided that the said Fox Lance Act is amended
to allow the City of Jersey city to increase said payments in lieu of taxes
or service charges from time to time.

Provided, however, that the foregoing costs and expenses shall exclude or
have deducted from them, as the case may be and as shall be appropriate:

        (a)  leasing commissions and other leasing expenditures;

           (b) expenditures of capital improvements except those which under
generally accepted real estate practice are expensed or regarded as deferred
expenses and except for capital expenditures required by law, in either of
which case the cost thereof shall be included in Expenses for the comparative
year in which the costs are incurred and subsequent comparative years1 on a
straight line basis, to the extent that such items are amortized over an
appropriate period, but not more than five years, with an interest factor
equal to the prime rate of Citibank at the time of Landlord's having incurred
said expenditure.

            (c) amounts received by Landlord through proceeds of insurance to
the extent that the proceeds are compensation for expenses which would be or
were previously included in Expenses hereunder;

              (d) cost of repairs or replacements incurred by reason of fire
or other casualty or eminent domain;

            (e)      advertising and promotional expenditures;

              (f) legal fees for disputes with tenants and legal and auditing
fees, other than legal and auditing fees reasonably incurred in connection
with the maintenance and operation of the Building or in connection with the
preparation of statements required pursuant to additional rent or lease
escalation provisions; and

            (g) costs incurred in performing work or furnishing services for
individual tenants (including Tenant) at such tenant's expense to the extent
that such work or service is in excess of any work or service Landlord at its
expense is obligated to furnish to Tenant;

              If Landlord shall purchase any item of capital equipment or
make any capital expenditure designed to result in savings or reductions in
Expenses, then the costs for same shall be included in Expenses. The costs of
capital equipment or capital expenditures are so to be included in Expenses
for the comparative year in which the costs are incurred and subsequent
comparative years, on a straight line basis, to the extent that such items
are amortized over such period of time as reasonably can be estimated as the
time in which such savings or reductions in Expenses are expected to equal
Landlord's costs for such capital equipment or capital expenditure, with an
interest factor equal to the prime rate of Citibank at the time of Landlord's
having incurred said costs. If Landlord shall lease any such item of capital
equipment designed to result in savings or reductions in Expenses, then the
rentals and other costs paid pursuant to such leasing shall be included in
Expenses for the comparative year in which they were incurred.

         6.02 Commencing with the second comparative year, if the Expenses
estimated in the manner provided in Article 6.03 for a comparative year shall
be greater than Expense Base Factor, Tenant shall pay to Landlord, additional
rent for such comparative year, in the manner hereinafter provided, an amount
equal to The Tenant's Share of the excess of the Expenses for such
comparative year over the Expense Base Factor (such amount being hereafter
called the "Expense Payment").

         6.03 Commencing with the second comparative year, and each year
thereafter for the balance of the Lease term, thirty (30) days prior to the
commencement of each comparative year, Landlord will submit to Tenant
Landlord's Certified Public Accountant's estimate of projected expenses for
such year as provided in Article 6.04. The estimate shall also set forth the
total projected expenses, if any, due to Landlord from Tenant for such year
pursuant to Article 6.02. The rendition of such estimate shall constitute
prima facie proof of the accuracy thereof. If such statement shows an Expense
Payment due to Landlord with respect to the forthcoming comparative year,
one-twelfth of this amount shall be payable monthly as additional rent,
commencing with the first month of such comparative year.

         No later than sixty (60) days after the conclusion of each
comparative year Landlord shall deliver to Tenant a final statement from its
Certified Public Accountant as provided in Article 6.04 setting forth the
actual Expenses for the preceding year. Within thirty (30) days of Tenant's
receipt of such statement Landlord and Tenant will make an appropriate cash
adjustment for any underestimate or overestimate of Landlord's Expenses for
the preceding comparative year (which underestimate shall result in
additional rent payable as herein provided).

         6.04 The estimated and final statements of Expenses to be furnished
by Landlord as provided above shall be certified by Landlord, and shall be
prepared in reasonable detail for the Landlord by a Certified Public
Accountant (who may be the Certified Public Accountant now or then employed
by Landlord for the audit of its accounts); said Certified Public Accountant
may rely on Landlord's allocations and estimates wherever operating cost
allocations or estimates are needed for this Article. The statements thus
furnished to Tenant shall constitute a final determination as between
Landlord and Tenant of the Expenses for the period represented thereby,
unless Tenant within sixty (60) days after they are furnished shall give a
notice to Landlord that it disputes their accuracy or their appropriateness,
which notice shall specify the particular respects in which the statement is
accurate. Pending the resolution of such dispute, Tenant as herein provided
shall pay the additional rent to Landlord in accordance with the statements
furnished by Landlord After payment of said additional rent, Tenant

<PAGE>

shall have the right, during reasonable business hours and upon not less than
five (5) business days' prior written notice to Landlord, to have Tenant's
Certified Public Accountant examine Landlord's books and records with respect
to the foregoing, provided such examination is commenced within thirty (30)
days and concluded within sixty (60) days following the rendition of the
statement in question.

         6.05 In any such dispute as to said statement Landlord and Tenant or
their respective Certified Public Accountants shall select a national "Big six"
accounting firm whose determination shall be conclusive in the resolution of the
dispute. If the dispute shall be determined in Tenant's favor, Landlord shall
forthwith pay to Tenant the amount of Tenant's overpayment resulting from
compliance with Landlord's statement and shall pay for tbe cost of the
accounting firm. In the event overpayment is greater than five (5%) percent,
Landlord shall pay interest to Tenant on such overpayment at the rate of 2% in
excess of the prime interest rate as set forth from time to time by Citibank,
N.A. from the date of payment of such amounts by Tenant until repayment of such
overpayment by Landlord. If the dispute shall be determined in Landlord's favor,
Tenant shall pay for the costs of the accounting firm.

         6.06 Real Estate Tax Increase Payment.

         (1) For each Tax Year (hereinafter defined) during the Term after the
ending December 31, 2001 Term, Tenant shall pay, as additional rent, the Tax
Payment (hereinafter defined) for such Tax Year.

         (2) Tax Definitions:

         (a) The term "Real Estate Taxes" shall mean the sum of the real estate
taxes and assessments and special assessments imposed upon the Building and the
plot of land on which the Building stands (the "Land") and any rights or
interests appurtenant thereto payable by Landlord during any Tax Year or any
service charges or other payments in lieu of taxes imposed by any tax abatement
granted the Landlord and payable by the Landlord. If at any time during the Term
the methods of taxation prevailing at the time of the commencement thereof shall
be altered so that in lieu of or as an addition to or as a substitute for the
whole or any part of the taxes, assessments, levies, impositions or charges now
levied, assessed or imposed, there shall be levied, assessed or imposed a tax,
assessment, levy, imposition or charge wholly or partially as a capital levy or
on the rents, licenses or other charges received with respect to the Term, the
Land or the Building, then all such taxes, assessments, levies, imposition or
charges payable shall be deemed to be included within the term "Real Estate
Taxes" for the purposes hereof. A copy of the tax bill of The City of Jersey
City or other taxing authority imposing Real Estate Taxes on the Land or the
Building shall be sufficient evidence of the amount of Real Estate Taxes.
Notwithstanding the fact that the aforesaid additional rent is measured by Real
Estate Taxes, such amount is additional rent and shall be paid by Tenant as
provided herein regardless of the fact that Tenant may be exempt, in whole or in
part, from the payment of any Real Estate Taxes by reason of Tenant's diplomatic
status or for any other reason whatsoever.

         (b) The term "Base Tax Year" shall mean the tax year ending December
31, 2001.

           (c) The term "Tax Year" shall mean each real estate fiscal tax
year of the City of Jersey City, New Jersey, following the Base Tax Year, any
portion of which occurs during the Term.

         (d) The term "Tax Payment" shall mean Tenant's Share for the Demised
Premises of the amount by which the Real Estate Taxes payable for a Tax Year
exceed the Real Estate Taxes payable for the Base Tax Year, whether such
increase results from a higher tax rate or an increase in the assessed
valuation of the Land or the Building, or both or from any other cause or
reason whatsoever. Notwithstanding the foregoing, if there is an increase in
assessed valuation of the Building resulting from an addition or improvement
to the Building by another tenant, then any increase in Real Estate Taxes
attributable to such increase shall not be included in the computation of Tax
Payment hereunder.

         (3) With respect to each Tax Year occurring in whole or in part
during the term of the Term, Tenant shall pay to Landlord the Tax Payment, in
equal monthly installments during the calendar year in which such Tax Year
commences in the manner hereinafter described. At any time during the
calendar year in which a Tax Year commences, Landlord may furnish to Tenant a
written estimate (a "Tax Estimate") of the Tax Payment for such Tax Year
("Estimated Tax Payment") Such estimate shall be determined by Landlord by
applying to the most recently announced assessed value of the Land and
Building (whether final or otherwise) such tax rate as Landlord shall
anticipate is the tax rate to be finally determined for such Tax Year, but
such rate shall in no event exceed by more than ten (10%) percent the then
current tax rate. Subject to adjustment as hereinafter provided, Tenant shall
pay to Landlord on the first day of each calendar month during such calendar
year, an amount equal to one-twelfth (1/12) of the Estimated Tax Payment for
the Tax Year commencing during such calendar year. If Landlord furnishes a
Tax Estimate for a Tax Year subsequent to the commencement of the calendar
year in which such Tax Year begins, then

     (a) until the first day of the month following the month in which the
Tax Estimate is furnished to Tenant, Tenant shall continue to pay to Landlord
on the first day of each month an amount equal to the monthly sum payable by
Tenant to Landlord with respect to the next previous Tax Year.

     (b) promptly after the Tax Estimate is furnished to Tenant, Landlord
shall give notice to Tenant stating whether the amount previously paid by
Tenant to Landlord during such calendar year was greater or less than the
installments of the Estimated Tax Payment to be paid during such calendar
year in accordance with the Tax Estimate, and

     (i) if there, shall be a deficiency, Tenant shall pay the amount thereof
within ten (10) days after demand therefor, or

<PAGE>

                  (ii) if there shall have been an overpayment, Landlord
shall credit the amount thereof against the next monthly installments of the
Fixed Annual Rent payable under this lease, and

        (c) on the first day of the month following the furnishing of Tenant
of the Tax Estimate, and monthly thereafter until the rendering to Tenant of
a Tax Statement (hereinafter defined) for such Tax Year, Tenant shall pay to
Landlord an amount equal to one twelfth (1/12) of the amount shown on such
Tax Estimate. Promptly after the amount of Real Estate Taxes is established
for a Tax Year,

        (i) Landlord shall furnish to Tenant a written statement (a "Tax
Statement") setting forth the Tax Payment for such Tax Year, and stating
whether the sum of the installments previously paid by Tenant to Landlord
pursuant to the Tax Estimate or otherwise for such Tax Year was greater or
less than the sum of the installments of the Tax Payment to be paid for such
Tax Year in accordance with the Tax statement,

        (ii) any deficiency or overpayment shall be disposed of in the manner
of a deficiency or overpayment in Estimated Tax Payment, and

                  (iii) on the first day of the month following the month in
which the Tax Statement is furnished to the Tenant, and monthly thereafter
until a new Tax Estimate or Tax Statement is furnished to Tenant, Tenant
shall pay to Landlord an amount equal to one-twelfth (1/12) of the Tax
Payment shown on the Tax Statement.

     (4) The Tax Estimates and Tax Statements to be furnished by Landlord as
provided above shall be certified by Landlord and a statement thus furnished
to Tenant shall constitute a final determination aS between Landlord and
Tenant of the Estimated Tax Payment or Tax Payment, as the case may be, for
the period represented thereby, unless Tenant within sixty (60) days after
the statement is furnished shall qive a notice to Landlord that Tenant
disputes the reasonableness, accuracy or appropriateness of such statement,
which notice shall specify the particular respects in which the statement is
unreasonable, inaccurate or inappropriate. Pending the resolution of such
dispute, Tenant as herein provided shall make the Estimated Tax Payment or
Tax Payment, as the case may be, to landlord without prejudice to Tenant's
position. In any such dispute as to a Tax Estimate or Tax Statement, Landlord
and Tenant shall, within ten (10) days after the giving of Tenant's notice
disputing the reasonableness, accuracy or appropriateness of such statement,
select a national "Big Six" accounting firm whose determination shall he
conclusive in the resolution of the dispute. If the dispute shall be
determined in Tenant's favor, Landlord shall forthwith pay to Tenant the
amount of Tenant's overpayment resulting from compliance with Landlord's
statement and shall pay for the cost of the accounting firm. In the event
overpayment is greater than five (5%) percent, Landlord shall pay interest to
Tenant on such overpayment at the rate of 2% in excess of the prime interest
rate as set forth from time to time by Citibank, N.A from the date of payment
of such amounts by Tenant until repayment of such overpayment by Landlord. If
the dispute shall be determined in Landlord's favor, Tenant shall pay for the
costs of the accounting firm.

     (5) Only Landlord shall be eligible to institute tax reduction or other
proceedings to reduce the assessed valuation of the Land or the Building.
Should Landlord be successful in any such reduction proceedings and obtain a
rebate for any Tax Year for which Tenant has paid installments of the Tax
Payment, Landlord, after deducting the expenses incurred in obtaining such
rebate including, without limitation, attorneys' fees1 court, or other
administrative costs and disbursements, shall credit Tenant's Share of such
rebate against the next monthly installment of the Fixed Annual Rent payable
under this Lease or in the case of the last month of the Term, pay such
amount to Tenant. In the event that the assessed valuation which had been
utilized in computing the Real Estate Taxes payable for the Base Tax Year is
reduced (as a result of settlement, final determination of legal proceedings
or otherwise) then

     (i) the Real Estate Taxes for the Base Tax Year shall be retroactively
adjusted to reflect such reduction;

     (ii) the monthly installments of Additional Rent shall be adjusted
accordingly; and

                  (iii) all retroactive Additional Rent resulting from such
adjustment shall be payable by Tenant within twenty (20) days after the
rendition of a bill therefor.

     6.07 In no event shall the Fixed Rent due under this Lease be reduced by
virtue of this Article.

                  6.08 If the Commencement Date of tbe term of this Lease is
not the first day of the first comparative year, then the additional rent due
hereunder for such first comparative year shall be a proportionate share of
said additional rent for the entire comparative year, said proportionate
share to be based upon the length of time that the Lease term shall have been
in existence during such first comparative year. Upon the date of any
expiration or termination of this Lease (except termination because of
Tenant's default) whether the same be the date hereinabove set forth for the
expiration of the Term or any prior or subsequent date, a proportionate share
of said additional rent for the comparative year during which such expiration
or termination occurs shall immediately become due and payable by Tenant to
Landlord, if it was not theretofore already billed and paid. The said
proportionate share shall be based upon the length of time that this lease
shall have been in existence during such comparative year.

                  6.09 Landlord's and Tenant's obligation to make the
adjustments referred to in this Article shall survive any expiration or
termination of this Lease.

     6.10 Any delay or failure of Landlord in billing any expense escalation
hereinabove provided shall not constitute a waiver of or in any way impair
the continuing obligation or Tenant to pay such expense escalation hereunder.

<PAGE>

                         ARTICLE 7 -- ELECTRICAL ENERGY

         7.01 Electrical energy consumed by Tenant in the Demised Premises
through wall and floor outlets, for lighting and business equipment shall be
separately metered and purchased by Tenant from the utility supplying
electricity to the Building. Tenant shall install as part of Tenant's Work on
the electrical meter for the Demised Premises. Landlord shall install at its own
cost the risers, to the Demised Premises sufficient to provide the Demised
Premises with electrical energy, in a safe and suitable manner, equal to 1000
amps. Electricity for heating, ventilating and air conditioning including for
any fan used in connection therewith during Regular Business Hours shall not be
included on such meter and shall be paid for by the Landlord. Tenant shall pay
to Landlord, as additional rent, the cost of electricity for heating,
ventilating and air conditioning including for any fan used in connection
therewith, in the Demised Premises during other than Regular Business Hours
pursuant to Article 8.01.

         7.02 Landlord's and Tenant's obligations to make the adjustments and
payments referred to in this Article shall survive any expiration or termination
of this Lease.

         7.03 Tenant covenants and agrees that at all times its use of
electrical current shall not exceed the capacity of existing feeders to the
Building or the risers, conduits, or wiring installation in the Building, and
Tenant shall not use any electrical equipment which, in Landlord's opinion
reasonably exercised, will overload such installations or interfere with the use
thereof by other tenants of the Building. In this connection, Landlord agrees,
at Tenant's cost and expense, as an item of extra material and work, to supply
and jnstall an electric meter or meters to measure Tenant's consumption of
electrical energy throughout the Demised Premises.

         7.04 Tenant may purchase from Landlord, at Landlord's option, all
replacements of electric fluorescent tubing and shall pay Landlord for
installing same.

         7.05 Tenant shall be provided access to Landlord's Emergency Stand-by
Electric Generator ("ESEG") sufficient to furnish 200 KW of electric energy from
the Building's ESEG. Tenant acknowledges that the Building's ESEG is intended to
supply electric energy to the Demised Premises only in the event of a temporary
failure of the supply of electric energy to the Building provided by the public
electric utility supplier. Tenant further acknowledges that Landlord does not
warranty, guarantee or has ever represented that the Building's ESEG will in
fact operate to supply the Demised Premises with temporary electric energy in
the event of temporary failure of the supply of electric energy to the Building
by the public electric utility supplier. Neither Landlord nor any agent or
employee of Landlord shall be liable to Tenant, its employees, agents,
contractors and licensees, and Tenant shall hold Landlord harmless from any
injury or damage to Tenant, including by way of example and not limitation,
damage, loss or injury to Tenant's computer hardware, software or computer
stored data or interruption of Tenant's business, in the event that the
Building's ESEG fails to provide temporary electric energy in the event of a
temporary emergency failure of the electric power supply to the Building and the
Demised Premises by the public electric utility supplier.

         7.06 Landlord, at Tenant's cost and expense, shall cause the Demised
Premises to be connected with the Building's ESEG for use in the event of a
temporary emergency failure to the electric power supply to the Building and the
Demised Premises provided by the public utility supplier. In addition to the
connection charge, Tenant stall pay directly to the Landlord, as and for
Additional Rent under the Lease, $40,000.00 for access to the Building's ESEG,
payable $3,333.33 per month commencing on the Commencement Date and ending on
the Lease Expiration Date (the "ESEG Charge"). The ESEG Charge shall be subject
to adjustment upward from time to time if the cost of providing same is
increased to the Landlord with an appropriate adjustment to the monthly payment
of the ESEG Charge.

                  ARTICLE 8 -- VENTILATION AND AIR CONDITIONING

         8.01 There shall be installed in the Demised Premises, as part of the
work provided for in Section 3.01, the Building heating, ventilating and
air-conditioning systems described and designed to substantially meet the
following performance specifications:

                                INSIDE CONDITION
                        Cooling Season 75 degrees F.D.B.
                           Heating Season 68 degrees F

                                OUTSIDE CONDITION
                 Cooling season 91 degrees F.D.B./76 degrees FWB
                          Heating Season 10 degrees F.

Landlord shall be under no liability to Tenant if such performance
specifications should not be able to be met prior to the said systems being
balanced. Landlord, at its expense, shall maintain and operate such systems and
shall furnish heat, ventilation and air-conditioning in the Demised Premises
through such systems, subject to Article 9.07, in compliance with such
performance specifications, during Regular Business Hours. If Tenant shall
require ventilating and air-conditioning service or heating service at any other
time other than Regular Business Hours (hereinafter called "after hours"),
Landlord shall furnish after hours ventilating and air-conditioning service or
heating service upon reasonable advance notice from Tenant, and Tenant shall pay
Landlord therefore, as additional rent upon rendition of a bill, the

<PAGE>

A.C. charge and the H. charge. The A.C. charge and the H. charge shall be
subject to adjustment upward from time to time.

         8.02 Landlord will not be responsible for the failure of the
air-conditioning system to meet the performance specifications set forth above
if such failure results from the occupancy of the Demised Premises with more
than an average of one person for each 150 square feet of Tenant's Floor Space
or if Tenant installs and operates machines and appliances, the installed
electrical load of which when combined with the load of all lighting fixtures
exceeds 3.5 watts per square foot of Tenant's Floor Space in any one room or
other area. If due to use of the Demised Premises in a manner exceeding the
aforementioned occupancy and electrical load criteria, or due to rearrangement
of partitioning after the initial preparation of the Demised Premises,
interference with normal operation of the air-conditioning in the Demised
Premises results, necessitating changes in the air-conditioning system servicing
the Demised Premises, such changes shall be made by Landlord upon written notice
to Tenant at Tenant's sole cost and expense. Tenant agrees to lower and close
window coverings when necessary because of the sun's position whenever the said
air conditioning system is in operation, and Tenant agrees at all times to
cooperate fully with Landlord and to abide by all the regulations and
requirements which Landlord may prescribe for the proper functioning and
protection of the said air-conditioning system. Landlord throughout the Term,
shall have free and unrestricted access to any and all air-conditioning
facilities in the Demised Premises.

         8.03 Any damage caused to heating, air-conditioning, and ventilating
equipment, appliances or appurtenances thereto as a result of the negligence of,
or careless operation of, the same by Tenant or its agents, servants, employees,
licensees, invitees, or visitors, shall be repaired by Landlord, and the cost
and expenses thereof shall be paid by Tenant as additional rent, within ten (10)
days after being billed therefor.

                     ARTICLE 9 -- LANDLORD'S OTHER SERVICES

         9.01 Landlord shall provide public elevator service to the floor(s) on
which the Demised Premises are situated during Regular Business Hours, and shall
have at least one elevator subject to call at all other times. The elevator(s),
or any or all of them, if more than one, may be operated by automatic control
and/or by manual control, as Landlord shall determine at any time or from time
to time. Landlord shall not be obligated to furnish an operator for any
automatic elevator and shall have no liability to Tenant for discontinuing the
service of any operator theretofore furnished. If Tenant shall require after
hours service of elevator(s) or of the loading area in the Building under such
circumstances as, in Landlord's reasonable judgment will require service or
attention by Landlord's personnel, Tenant shall pay Landlord, or demand, a
reasonable charge attributable to such service or attention.

         9.02 Landlord shall not be required to clean the Demised Premises
provided that Tenant shall keep the Demised Premises in good order.

         9.03 Landlord, at its expense, shall furnish adequate hot and cold
water at ordinary lavatory temperature to each floor of the Building for
drinking, lavatory, and cleaning purposes, together with soap, towels and toilet
tissue for each lavatory. If Tenant uses water for any other purpose Landlord,
at Tenant's expense, may install meters to measure Tenant's consumption of cold
water and/or hot water for such other purposes and/or steam, as the case may be.
Tenant shall pay for the quantities of cold water and hot water shown on such
bills therefor. In connection with permitted kitchen use, the amount of hot
water demand shall not exceed the excess Building design capacity.

         9.04 Landlord, at its own expense, and at Tenant's request, shall
insert initial listings on the Building Directory of the names of Tenant, and
any affiliate, and the names of any of their officers and employees, provided
that the names so listed shall not take up more than Tenant's proportionate
share of the space on the Building Directory. All Building Directory changes
made at Tenant's request after the Tenant's initial listings have been placed on
the Building Directory shall be made by Landlord at the expense of Tenant, and
Tenant agrees to promptly pay to Landlord as additional rent the cost of such
changes within ten (10) days after Landlord has submitted an invoice therefor.

         9.05 With respect to parking of vehicles (if parking is provided under
Article 1 hereof):

         A. Landlord represents that throughout the Term there will be a paved,
illuminated parking area for the Building with the number of Parking Spaces
specified in Article 1. If Landlord so elects, Tenant shall require its
personnel and visitors to park their vehicles only in Parking spaces designated
by Landlord for Tenant's use for its personnel and visitors on a "first come,
first served" basis. Landlord reserves the right at all times to redesignate
such Parking spaces. Tenant, its personnel and visitors shall not at any time
park any trucks or delivery vehicles in any of the parking areas.

         B. All Parking Spaces and any other parking areas used by Tenant, its
personnel and visitors will be at their own risk, and Landlord shall not be
liable for any injury to person or property, or for loss or damage to any
automobile or its contents, resulting from theft, collision, vandalism or any
other cause whatsoever.

         C. Tenant shall agree to all requests by Landlord that Tenant and its
employees and visitors remove their vehicles from the Parking Spaces to another
parking area provided by Landlord at reasonable periods for purposes of cleaning
and maintenance of such spaces or as required for purposes of snow removal,
provided that Landlord will perform such cleaning, maintenance and snow removal
and make such Parking Spaces available to Tenant and its employees and visitors
as promptly as possible.

         9.06 Landlord shall keep and maintain the public areas and the public
facilities of the Building and the grounds clean and in good order, and the
sidewalks and parking areas adjoining the Building shall be kept free of
accumulation of snow and ice (except any overnight parking area) or unlawful
obstruction.

<PAGE>

         9.07 Landlord reserves the right, without any liability to Tenant;
except as otherwise expressly provided in this Lease, and without being in
breach of any covenant of this Lease, to stop, interrupt or suspend service of
any of the heating, ventilating, air conditioning, electric, sanitary, elevator
or other Building systems serving the Demised Premises, or the rendition of any
other services required of Landlord under this Lease, whenever and for so long
as may be necessary, by reason of accidents, emergencies, the making of repairs
or changes which Landlord is required by this Lease or by law to make or in good
faith deems advisable, or by reason of unavoidable delays. In each instance
Landlord shall exercise reasonable diligence to eliminate the cause of stoppage
and to effect restoration of service and shall give Tenant reasonable notice,
when practicable, of the commencement and anticipated duration of such stoppage,
and if any work is required to be performed in or about the Demised Premises for
such purpose, the provision of Section 14.03 shall apply. Tenant shall not be
entitled to any diminution or abatement of rent or other compensation nor shall
this Lease or any of the obligations of Tenant be affected or reduced by reason
of the interruption, stoppage or suspension of any of the Building systems or
services arising out of the causes set forth in this Section.

                                ARTICLE 10 -- USE

        10.01     The "Permitted Use" of the Demised Premises for the purposes
                  specified in Article 1 hereof shall not in any event be deemed
                  to include, and Tenant shall not use, or permit the use of,
                  the Demised Premises or any part thereof for:

(a) sale of, or traffic in, any spirituous liquors, wines, ale or beer kept in
the Demised Premises;

(b) sale at retail of any other products or materials kept in Demised Premises,
by vending machines or otherwise, demonstrations to the public, except as may be
specifically agreed to by Landlord in writing;

(c) manufacturing, printing or electronic data processing, except for the
operation of normal business office reproducing and printing equipment, business
machines and electronic data processing equipment incidental to the conduct of
Tenant's business and for tenant's own requirements at the Demised Premises,
provided that such use shall not exceed that portion of the mechanical or
electrical capabilities of the building equipment allocable to the Demised
Premises;

(d) the rendition of medical, dental or other diagnostic or therapeutic services

(e) the conduct of a public auction of any kind;

(f) the conduct of a banking, trust company, savings bank, safe deposit, savings
and loan association or loan company business;

(g) the issuance and sale of traveler's checks, foreign drafts, letters of
credit, foreign exchange or domestic money orders (except as incidentally
required in conduct of Tenant's normal business activity);

(h) the receipt of money for transmission (except as is incidentally required in
conduct of Tenant's normal business activity); or

(i) a restaurant, bar, or the sale of confectionery, tobacco, newspapers,
magazines, soda, beverages, sandwiches, ice cream, baked goods or similar items,
or the preparation, dispensing or consumption of food and beverages in any
manner whatsoever.

10.02 Tenant shall not suffer or permit the Demised Premises or any part thereof
to be used in any manner, or anything to be done therein, or suffer or permit
anything to be brought into or kept therein, which would in any way (i) violate
any of the provisions of any grant, least or mortgage to which this lease is
subordinate, (ii) violate any laws or requirements of public authorities, (iii)
make void or voidable any fire or liability insurance policy then in force with
respect to the Building (iv) make unobtainable from reputable insurance
companies authorized to do business in New Jersey at standard rates any fire
insurance with extended coverage, or liability, elevator or boiler or other
insurance required to be furnished by Landlord under the terms of any tease or
mortgage to which this lease is subordinate, (v) cause or in Landlord's opinion
be likely to cause physical damage to the building or any part thereof, (vi)
constitute a public or private nuisance, (vii) impair, in the reasonable opinion
of the Landlord, the appearance, character or reputation of the Building, (viii)
discharge objectionable fumes, vapors or odors into the Building air
conditioning system or into Building flues or vents not designed to receive them
or otherwise in such a manner as say unreasonably offend other occupants (ix)
impair or interfere with any of the Building services or tie proper and economic
heating, cleaning, air conditioning or other servicing of the Building or the
Demised Premises or impair or interfere with or tend to impair or interfere with
the use of any of the other areas of the Building by, or occasion annoyance or
inconvenience to, Landlord or any of the other tenants or occupants of the
Building, or (x) cause Tenant to default in any of its other obligations under
this Lease. The provisions of this section, and the application thereof, shall
not be deemed to be limited in any way to or by the provisions or any of the
following sections of this Article or any of the Rules and Regulations referred
to in Article 20 or exhibit attached hereto, except as may therein be expressly
otherwise provided

10.03 If any governmental license or permit, other than a certificate of
Occupancy for the Building, shall be required for the proper and lawful conduct
of Tenant's business in the Demised Premises, or any part thereof, and it
failure to secure such license or permit would in any way affect Landlord, then
Tenant, at its expense, shall duly procure and thereafter maintain such license
or permit, but in no event shall failure to procure and maintain same by Tenant
affect Tenant's obligations hereunder. Tenant shall not at my time use or
occupy, or suffer or permit anyone to use or occupy the Demised Premises, or do
or permit anything to be done in the Demised Premises, in violation of the
certificate of Occupancy for the Demised Premises or for the Building.

<PAGE>

10.04 Tenant shall not place a load upon any floor of the Demised Premises
exceeding the floor load per square foot which such floor was designed to carry
and which is allowed by certificate, rule, regulation, permit or law. Landlord
reserves the right to prescribe the weight and position of all safes and vault;
which must be placed by Tenant, at Tenant's expense. Business machines and
mechanical equipment shall be positioned and maintained by Tenant, at Tenant's
expense, in such manner as shall be sufficient in Landlord's judgment to absorb
and prevent vibration, noise and annoyance.

                         ARTICLE 11 - ACCESS CHANGES IN
                            BUILDING FACILITIES, NAME

11.01 All walls, windows and doors bounding the Demised Premises (including
exterior Building walls, core corridor walls and doors and any core corridor
entrance, except the inside surfaces thereof, any terraces or roofs adjacent to
the Demised Premises, and space in or adjacent to the Demised Premises used for
shafts, stacks, pipes, conduits, fan rooms, ducts, electric or other utilities,
sinks or other Building facilities, and the use thereof, as well as access
thereto through the Demised premises for the purposes of operating, maintenance,
decoration and repair, are reserved to Landlord.

11.02 Tenant shall permit Landlord to install, use and maintain pipes, ducts and
conduits with in or through the Demised Premises, or through the walls, columns
and ceiling therein, provided that the installation work is performed at such
times and by such methods as will not unreasonably interfere with Tenant's use
and occupancy of the Demised Premises, or damage the appearance thereof, reduce
the Tenant's Floor space by more than two (2%) percent (without an appropriate
adjustment in rent) or materially affect Tenant's layout. Where access doors are
required for mechanical trades in or adjacent to the Demised Premises, Landlord
shall furnish and install such access doors at its expense, and confine their
location wherever practical to closets, coat rooms, toilet rooms, corridors, and
kitchen or pantry rooms. Landlord and Tenant shall cooperate with each other in
the location of Landlord's and Tenant's facilities requiring such access doors.

11.03 Landlord or Landlord's agents or employees shall have the right upon
request made on reasonable advance notice to Tenant, or to an authorized
employee of Tenant at the Demised Premise, to enter and/or pass through the
Demised Premises or any part thereof, at reasonable times during reasonable
hours, (i) to examine the Demised Premises, or to show them to lessors of
superior leases, holders of mortgages, insurance carriers, or prospective
purchasers, mortgagees or lessees of the land or the Building, or prospective
tenants, and (ii) for the purpose of making such repairs or changes in or to the
Demised Premises or in or to the Building or its facilities as may be provided
for by this Lease or as Landlord may deem necessary or as Landlord may be
required to make by law or in order to repair and maintain the Building or its
fixtures or facilities. Landlord shall be allowed to take into and store upon
the Demised Premises all materials which nay be required for such repairs,
changes or maintenance. However, Landlord's rights under this Section shall be
exercised in such manner as will not unreasonably interfere with Tenant's use
and occupancy of the Demised Premises. Landlord, its agents or employees, shall
also have the right to enter on and/or pass through the Demised Premises, or any
part thereof without notice at such tines as such entry shall be required by
circumstances of emergency affecting the Demised Premises or the Building

11.04 Landlord reserves the right, at any time after completion of the Building,
without incurring any liability to Tenant therefor to make such changes in or to
the Building and the fixtures and equipment thereof, as well as in order to the
street entrances, halls passages, elevators and stairways thereof, as it may
deem necessary or desirable; provided that there be no unreasonably lengthy
interference with the use of the Demised Premises or in the services furnished
to the Demised Premises, and no reduction in the Tenant's Floor Space in excess
of two (2%) percent without an appropriate adjustment in rent.

11.05 Landlord may limit and restrict, as provided in the Rules and Regulations
attached hereto as Exhibit B, the means of access to the Demised Premises
outside of Regular Business Hours, so long as Tenant's employees and authorized
agents have reasonable access to all parts of the Demised Premises. Tenant, and
its agents, employees and visitors shall be entitled to access from the Demised
Premises to, and the right to use, the toilets, lavatories and powder rooms only
on the floor (or floors) on which the Demised Premises are located.

11.06 Landlord reserves the right to select a name for the Building and to make
such change or changes of name as it may deem appropriate during Tenant's
occupancy, and Tenant agrees not to refer to the Building by any other name than
(i) the name as selected by Landlord, or (ii) the postal address approved by the
U.S. Post Office.

                          ARTICLE 12-- TENANT'S CHANGES

12.01 Tenant may, at any time and from time to time during the Term, at its sole
expense, make such other alterations, additions, installations, substitutions,
improvements and decorations (hereinafter collectively called "Changes" and as
applied to changes provided for in this Article, "Tenant's Changes") to the
Demised Premises, excluding structural changes and changes affecting the
mechanical systems, on the following conditions, and providing such changes will
not result in a violation of or require a change in the certificate of occupancy
applicable to the Demised Premises: (a) The outside appearance, character or use
of the Building shall not be affected, and no Tenant's Changes shall weaken or
impair the structural strength or, in the opinion of Landlord, lessen the value
of the Building; (b) No part of the Building outside of the Demised Premises
shall be physically affected; (c) The proper functioning or any of the
mechanical, electrical, sanitary and other service systems of the Building shall
not be adversely affected; (d) In performing the work involved in making such
changes Tenant shall be bound by and observe all of the conditions and covenants
contained in this Article; (e) At the Expiration Date, Tenant shall on
Landlord's written request restore the Demised Premises to their condition prior
to the making of any of the changes permitted by this Article, reasonable wear
and tear excepted, and Landlord shall be entitled to additional security
pursuant to Article 15 for the performance of Tenant's obligation; (f) At

<PAGE>

least thirty (30) days prior to proceeding with any change (exclusive of
changes in items constituting "Tenant's Property" as defined in Article 13).

12.02 All Tenant's changes shall at all times comply with laws, orders and
regulations of governmental authority having jurisdiction thereof, and all rules
and regulations of Landlord and Tenant, at its expense, shall obtain all
necessary governmental permits and certificates for the commencement and
prosecution of Tenant's Changes and for final approval thereof upon completion,
and shall cause Tenant's changes to be performed in compliance therewith and
with all applicable requirements of insurance belies, and in good and first
class workmanlike manner, using materials and equipment at least equal in
quality and class to the original installations of the Building. Tenant's
Changes shall be performed in such manner as not to interfere with the occupancy
of any other tenant in the Building nor delay, or impose any additional expense
upon Landlord in the construction, maintenance or operation of the Building, and
shall be performed by contractors or mechanics approved by Landlord and in
accordance with the Building Rules and Regulations for Trades Conducting
Operations, attached hereto as Exhibit C-1 and Insurance Requirements for Trades
Conducting Operations in the Building, attached hereto as Exhibit C-2.
Throughout the performance of Tenant's Changes, Tenant, at its expense, shall
carry, or cause to be carried, workmen's compensation insurance in statutory
limits, and general liability insurance for any occurrence on, in or about the
Building, in which Landlord and its managing agent shall be named as parties
insured, in such limits as Landlord may reasonably prescribe (but not less than
those specified in Section l6~02), with insurers reasonably satisfactory to
Landlord. Tenant shall furnish Landlord with reasonably satisfactory evidence
that such insurance is in effect at or before the commencement of Tenant's
Changes and, on request, at reasonable intervals thereafter during the
continuance of Tenant's Changes. No Tenant's Changes shall involve the removal
of any fixtures, equipment or other property in the Demised Premises which are
not "Tenant's Property" (as defined in Article 13), unless Landlord's prior
written consent is first obtained and unless such fixtures, equipment or other
property shall be promptly replaced, at Tenant's expense and free of superior
title, liens and claims, with fixtures, equipment or other property (as the case
may be) of like utility and at least equal value (which replaced fixtures,
equipment or other property shall thereupon become the property of Landlord,
unless Landlord shall otherwise consent in writing.

12.03 Tenant, at its expense, and with diligence and dispatch, shall procure the
cancellation or discharge of all notices of violation arising from or otherwise
connected with Tenant's Changes which shall be issued by the appropriate
department of the municipality in which the Building is located or any other
public authority having jurisdiction. Tenant shall defend, indemnify and save
harmless Landlord against any and all mechanics and other liens in connection
with Tenant's Changes, repairs or installations, including but not limited to
the liens of any conditional sales of, or chattel mortgages upon, any materials,
fixtures, or articles so installed in and constituting part of the Demised
Premises and against all costs, attorney's fees, fines, expenses and liabilities
reasonably incurred in connection with any such lien, conditional sale or
chattel mortgage or any action or proceeding brought thereon. Tenant, at its
expense, shall procure the satisfaction or discharge of all such liens within
thirty (30) days of the filing of such liens against the Demised Premises or the
Building. If Tenant shall fail to cause such lien to be discharged within the
period aforesaid, then, in addition to any other right or remedy, Landlord may,
but shall not be obligated to, discharge the same either by paying the amount
claimed to be due or by procuring the discharge of such lien by deposit or by
bonding proceedings, and in any such event Landlord shall be entitled, if
Landlord so elects to compel the prosecution of any action for the foreclosure
of such lien by the lienor and to pay the amount of the judgment in favor of the
lienor with interest, costs and allowances. Any amount so paid by Landlord and
all costs and expenses incurred by Landlord in connection therewith, together
with interest thereon at the lesser of the maximum permitted by law or 1 1/2%
per month or portion thereof from the respective dates of Landlord's making of
the payment or incurring of the cost and expense shall constitute additional
rent payable by Tenant under this Lease and shall be paid by Tenant on demand.
If Tenant makes any such payment it shall not be entitled to any set-off against
rent due hereunder. Tenant agrees that it will not at any time prior to or
during the Term, either directly or indirectly, use any contractors, labor or
materials in the Demised Premises, if the use of such contractors, labor or
materials would, in the Landlord's reasonable opinion, create any difficulty
with other contractors or labor engaged by Tenant or Landlord or would in any
way disturb harmonious labor relations in the construction, maintenance or
operation of the Building or any part thereof or any other building owned or
operated by Landlord or any affiliate of Landlord.

12.04 If Tenant requires Landlord to perform work during other than Regular
working Hours, or if Tenant desires to perform work through its contractors,
agents or employees during other than Regular Working hours, Tenant shall pay as
additional rent, the cost of employing such additional help as shall be required
under the rules and regulations of unions employed in connection with the
Building. Payment shall be made by Tenant to Landlord within ten (10) days after
being billed therefor.

12.05 In the event Landlord does not perform the work for Tenant, Tenant shall
pay to Landlord a supervisory fee (which shall include the cost of review of the
proposed Tenant's Changes) equal to Landlord's actual out-of-pocket expenses for
such supervision.

                         ARTICLE 13 - TENANT'S PROPERTY

13.01 All fixtures, equipment, improvements and appurtenances attached to or
built into the Demised Premises, shall be deemed the property of Landlord and
shall not be removed by Tenant except as hereinafter in this Article expressly
provided.

13.02 All fixtures, furnishings and equipment, exclusive of work performed by
Landlord at Landlord's cost and expense pursuant to the provisions of Article 3
hereof, whether or not attached to or built into the Demised Premises which are
installed in the Demised Premises by or for the account of Tenant, may be
removed by it at any time during the Term; provided that if any of Tenant's
Property is removed, Tenant shall repair or pay the cost of repairing any damage
to the Demised Premises or to the

<PAGE>

Building resulting from such removal. Any fixture, equipment or other
property for which Landlord shall have granted any allowance to the Tenant as
a credit or substitution in kind shall not be deemed to have been installed
by or for the account of the Tenant without expense to Landlord, and shall
not be considered Tenant's Property. Landlord shall not be obligated to
return and/or reinstall any partitions supplied to tenant which are returned
by Tenant to Landlord due to enlargement, reduction or change in the Demised
Premises.

                13.03 At or before the expiration of this Lease, Tenant shall
remove, at its expense, from the Demised Premises, all of Tenant's property and
shall repair any damage and make any replacements to the Demised Premises or the
Building resulting from or necessitated by such removal, and shall pay all other
costs of such removal.

l3.04 Any items of Tenant's Property which shall remain in the Demised
Premises after the expiration of this Lease, may, at the option of
the Landlord, be deemed to have been abandoned, and in such case either may
be retained by Landlord as its property or may be disposed of, without
accountability to Tenant in such manner as Landlord may see fit. Tenant
agrees to reimburse landlord for the costs of removal and for the cost of
repairing any damage to the Demised Premises or the Building arising out of
Tenant's failure to remove Tenant's Property pursuant to the terms of this
Lease.

                      ARTICLE 14 -- REPAIRS AND MAINTENANCE

14.01 Tenant shall take good care of the Demised Premises and the fixtures and
appurtenances therein, and at its sole cost and expense shall make all repairs
thereto, as and when needed to preserve them in good working order and condition
except as otherwise provided in Section 14.02 hereof. In addition, Tenant, at
its expense, shall promptly make all repairs, ordinary or extraordinary,
interior or exterior, structural or otherwise, in and about the Demised Premises
and the Building as shall be required by reason or (i) the performance or
existence of work by Tenant necessary to suit the Demised Premises to Tenant's
initial occupancy or in connection with Tenant's changes, (ii) the installation,
use or operation of Tenant's Property in the Demised Premises, (iii) the moving
of Tenant's Property in or out of the Building, or (iv) the misuse or neglect of
Tenant or any of its employees, agents or contractors. Tenant shall not be
responsible, and Landlord shall be responsible, for any repairs to the Demised
Premises as are required by reason of Landlord's neglect or other fault in the
manner of performing any work provided for in Article 2 which Landlord is to
perform in Tenant's changes which may be undertaken by Landlord for Tenant's
account or are otherwise required by reason of neglect or other fault of
Landlord or its employees, agents or contractors.

14.02 Landlord shall keep and maintain the Building and its fixtures,
appurtenances, systems and facilities (including the heating, ventilating and
air-conditioning systems and the central or core elevator and plumbing systems),
serving the Demised Premises, in good working order, condition and repair and
shall make all structural repairs, interior and exterior, except as indicated in
the second sentence of Section 14.01, as and when needed in the Building, except
for those repairs for which Tenant is responsible pursuant to any other
provisions of this Lease, and subject to all other provisions of this Lease,
including but not limited to the provisions of Article 22.

l4.03 Except as expressly otherwise provided in this Lease, Landlord shall have
no liability to Tenant by reason of any inconvenience, annoyance, interruption
or injury to business arising from Landlord or any tenant making any repairs or
changes or performing maintenance services, whether or not Landlord is required
or permitted by this Lease or by law to make such repairs or changes or to
perform such services in or to any portion of the Building or Demised Premises
or in to the fixtures, equipment or appurtenances of the Building or the Demised
Premises provided that Landlord shall be reasonably diligent with respect
thereto and shall perform such work, except in case of emergency, at times
reasonably convenient to Tenant and otherwise in such manner and to the extent
practical as will not unreasonably interfere with Tenant's use and occupancy or
the Demised Premises.

14.04 When used in this Lease the term "repair" shall be deemed to include
restoration and replacements as may be necessary to achieve and/or maintain good
working order and condition.

                         ARTICLE 15 -- SECURITY DEPOSIT

Tenant has deposited with Landlord $24,578.00 as security for the punctual
performance by Tenant of each and every obligation of it under this Lease,
including the restoration of the Premises pursuant to Article 12.01. In the
event of any default by Tenant, Landlord may apply or retain all or any part of
the security to cure the default or to reimburse Landlord for any sum which
Landlord may spend by reason of the default. In the case of every such
application or retention Tenant shall, on demand, pay to Landlord the sum so
applied or retained which shall be added to the Security Deposit so that the
same shall be restored to its original amount. If at the end of the Term Tenant
shall not be in default under this Lease, the Security Deposit, or any balance
thereof, shall be returned to Tenant, within thirty (30) days after the
Expiration Date. In the event of a sale of the land and Building or leasing of
the Building, of which the Demised Premises form a part, Landlord shall have the
right to transfer the security to the vendor or lessee and Landlord shall
thereupon be released by Tenant from all liability for the return of such
security; and Tenant agrees to look to the new Landlord solely for the return of
said security; and it is agreed that the provision hereof shall apply to every
transfer or assignment of the security to a new Landlord. Tenant further
covenants that it will not assign or encumber or attempt to assign or encumber
the monies deposited herein as security and neither the Landlord nor its
successors or assign shall be bound by any such assignment, encumbrance,
attempted assignment or attempted encumbrance.

                             ARTICLE 16-- INSURANCE

<PAGE>

16.01    Tenant shall not violate, or permit the violation of, any condition
         imposed by the standard fire insurance policy then issued for office
         Buildings in the area in which the Building is located and shall not
         do, or permit anything to be done, or keep or permit anything to be
         kept in the Demised Premises which would increase the fire or other
         casualty insurance rate on the Building or the property therein over
         the rate which would otherwise than be in effect (unless Tenant pays
         the resulting increased amount of premium) or which would result in
         insurance companies of good standing refusing to insure the Building or
         any of such property in amounts and at normal rates reasonably
         satisfactory to Landlord. However, Tenant shall not be subject to
         liability or obligation under this Section by reason of the proper use
         of the Demised Premises for executive and administrative offices.

16.02 Tenant shall obtain and keep in full force and effect during the Term at
its own cost and expense, Public Liability insurance, such insurance to afford
protection in an amount of not less than $1,000,000.00 for injury or death to
any one person, $3,000,000.00 for injury or death arising out of any one
occurrence, and $500,000.000 for damage to property, protecting the Landlord and
the Tenant as insureds against any and all claims for personal injury, death or
property damage occurring in, upon, adjacent or connected with the Demised
Premises and ANY part thereof. Said insurance is to be written by insurance
companies admitted to do business in the state of New Jersey which shall he
reasonably satisfactory to the Landlord. The original insurance policies or
appropriate certificates shall be deposited with Landlord together with any
renewals, replacements or endorsements to the end that said insurance shall be
in full force and effect for the benefit of the Landlord during the Term. In the
event Tenant shall fail to procure and place such insurance, the Landlord may,
but shall not be obligated to, procure and place same, in which event the amount
of the premium paid shall be paid by Tenant to Landlord upon demand and shall in
each instance be collectible on the first day of the month or any subsequent
month following the date of payment by Landlord, in the same manner as though,
and same shall be considered to be additional rent reserved hereunder.

16.03 In the event that any dispute should arise between Landlord and Tenant
concerning insurance rates, a schedule or "makeup" of rates for the Building or
the Demised Premises, as the case may be, issued by the Fire insurance Rating
Organization of New Jersey or other similar body making rates for fire insurance
and extended coverage for the premises concerned, shall he presumptive evidence
of the facts therein stated and of the several items and charges in the fire
insurance rates with extended coverage then applicable to such premises.

16.04 Each party agrees to use its best efforts to include in each of its
insurance policies insuring the Building and Landlord's property therein and
rental value thereof, in the case of Landlord and insuring Tenant's Property and
business interest in the Demised Premises (business interruption insurance) in
the case of Tenant, against loss, damage or destruction by fire or other
casualty, a waiver of the insurer's right of subrogation against the other
party, or if such waiver should be unobtainable or unenforceable (a) an express
agreement that such policy shall not be invalidated it the insured waives the
right of recovery against any party responsible for a casualty covered by the
policy before the casualty or (b) any other form of permission for the release
of the other party. If such waiver, agreement or permission shall not be, or
shall cease to be, obtainable without additional charge or at all, the insured
party shall so notify the other party promptly after learning thereof. In such
case, if the other party shall so elect shall pay the insurer's additional
charge therefore, such waiver, agreement or Permission shall be included in the
policy, or the other party shall be named as an additional insured in the
policy, but not the loss payee. Each such policy which shall so name a party
hereto as an additional insured shall contain agreements by the insurer that the
policy will not be cancelled without at least twenty (20) days prior notice to
both insureds and that the act or omission of one insured will not invalidate
the policy as to the other insured. Any failure by Tenant, if named as an
additional insured promptly to endorse to the order of Landlord, without
recourse, any instrument for the payment of money under or with respect to the
policy of which Landlord is the owner or original or primary insured, shall be
deemed a default under this Lease.

l6.05 Each party hereby releases the other party with respect to any claim
(including a claim for negligence) which it might otherwise have against the
other party for loss, damage or destruction with respect to its property
(including rental value or business interruption) occurring during the Term and
with respect and to the extent to which it is insured under a policy or policies
containing a waiver of subrogation or permission to release liability or naming
the other party as an additional insured as provided in Sections 16.04. If
notwithstanding the recovery of insurance proceeds by either party for loss,
damage or destruction of its property (or rental value or business interruption)
the other party is liable to the first party with respect thereto or is
obligated under this Lease to make replacement, repair or restoration or
payment, then provided the first party's right of full recovery under its
insurance policies is not thereby prejudiced or otherwise adversely affected,
the amount of the net proceeds of the first party's insurance against such loss,
damage or destruction shall be offset against the second party's liability to
the first party therefor, or shall be made available to the second party to pay
for replacement, repair or restoration, as the case may be.

16.06 The waiver of subrogation or permission for release referred to in Section
16.04 shall extend to the agents of each party and its and their employees and,
in the case of Tenant, shall also extend to all persons and entities occupying,
using or visiting the Demised Premises in accordance with the terms of this
Lease, but only if and to the extent that such waiver or permission can be
obtained without additional charge (unless such party shall pay much charge).
The releases provided for in section 16.05 shall likewise extend to such agents,
employees and other persons and entities, if and to the extent that such waiver
or permission is effective as to them. Nothing contained in section 16.05 shall
be deemed to relieve either party of any duty imposed elsewhere in this Lease to
repair, restore or rebuild or to nullify any abatement of rents provided for
elsewhere in this Lease. Except as otherwise provided in section 16.02, nothing
contained in section 16.04 and 16.05 shall be deemed to impose upon either party
any duty to procure or maintain any of the kinds of insurance referred to
therein or any particular amounts or limits of any such kinds of insurance.

<PAGE>

                    ARTICLE 17 -- SUDORDINATI0N, ATTORNMENT,
                         NOTICE TO LESSOR ANO MORTGAGEES

17.01 Landlord shall cause the mortgagees under all existing and future superior
mortgages (as hereinafter defined) and the lessors under all existing and future
superior leases (as hereinafter defined) to enter into subordination,
non-disturbance and Attornment agreements with Tenant in the form of Exhibit D
annexed hereto (the "Subordination, Non-Disturbance and Attornment Agreement").
The Subordination Non-Disturbance and Attornment Agreement with respect to the
mortgage encumbering the Building on the date hereof shall be delivered to
Tenant no later than sixty (60) days after the execution and delivery of this
Lease. Provided the provisions of the foregoing sentence are complied with, this
Lease and all rights of Tenant hereunder, are and shall be subject and
subordinate in all respects to all present and future ground leases, over-riding
leases and underlying leases and/or grants of terms of the land and/or the
Building or the portion thereof in which the Demised Premises are located in
whole or in part now or hereafter existing ("superior leases") and to all
mortgages and Building loan agreements, which may now or hereafter affect the
land and/or the Building and/or any of such leases ("superior mortgages")
whether or not the superior leases or superior mortgages shall also cover other
lands and/or Buildings, to each and every advance made or hereafter to be made
under the superior mortgages, and to all renewals, modifications, replacements
and extensions of the superior leases and superior mortgages and spreaders,
consolidations and correlations of the superior mortgages. This Section shall be
self-operative and no further instrument of subordination shall be required. In
confirmation of such subordination, Tenant shall promptly execute and deliver at
its own cost and expense any instrument, in recordable form if required, that
Landlord, the lessor of any superior lease or the holder of any superior
mortgage or any of their respective successors in interest may request to
evidence such subordination, and Tenant hereby constitutes and appoints Landlord
attorney-in-fact for Tenant to execute any such instrument for and on behalf of
Tenant.

17.02 In the event that the lessor of a superior lease or the holder of a
superior mortgage shall succeed to the rights of the Landlord under this Lease
whether through possessory or foreclosure action or proceeding or through
delivery of a new lease, then at the request of any such party, the Tenant shall
attorn to and recognize such party as its Landlord under this Lease. In an such
event, this Lease shall continue in full force and effect as if it were a direct
lease between such party and the Tenant upon all of the terms covenants and
conditions set forth in this Lease and shall be applicable after such
attornment, except that such party shall not (a) be obligated to perform any
work in the Building, including the Demised Premises or prepare them for
occupancy; (b) be obligated to repair replace, rebuild or restore the Building,
or the Demised Premises in the event of damage or destruction, beyond such
repair, replacement, rebuilding or restoration as CAN reasonably be accomplished
from the net proceeds of insurance actually received by, or made available to,
such party; (c) be liable for any previous act or omission by Landlord; (d) be
subject to any liability or offset which shall theretofore accrue to the Tenant
against Landlord; (e) be bound by any previous modification or extension of this
Lease unless filed with such party and made at arms length, in good faith and in
the honest exercise of reasonable business judgment; (f) be bound by any
previous pre-payment of more than one month's fixed rent or other charge, or (g)
be bound by any cancellation or surrender of this Lease or any eviction of the
Tenant by Landlord unless made at arms length, in good faith and in the honest
exercise of reasonable business judqnent.

        17.03 Provided Tenant has received the subordination Non- Disturbance
and Attornment Agreement as required under 17.01 thereof, Tenant agrees to waive
the provisions of any statute or rule or law now or hereafter in effect which
may give or purport to give Tenant any right of election to terminate this Lease
or to surrender possession of the Demised Premises in the event a superior lease
is terminated or a superior mortgage is foreclosed, and that unless and until
said lessor, or holder, as the case may be, shall elect to terminate this Lease,
this Lease shall not be affected in any way whatsoever by any such proceeding or
termination, and Tenant shall take no steps to terminate this Lease without
giving written notice to said lessor under the superior lease, or holder of a
superior mortgage and a reasonable opportunity to cure (without such lessor or
holder being obligated to cure), any default on the part of the Landlord under
this Lease,

                 ARTICLE 18 - ASSIGNMENT, MORTGAGING, SUBLETTING

18.01 Neither this Lease nor the Term and estate hereby granted, nor any part
hereof or thereof, nor the interest of Tenant in any sublease or the rentals
thereunder, shall be assigned, mortgaged, pledged, encumbered or otherwise
transferred by Tenant by operation of law or otherwise, and neither the Demised
Premises nor any part thereof, shall be encumbered in any manner by reason of
any act or omission on the part of the Tenant; or anyone claiming under or
through Tenant, or shall be sublet or be used or occupied or permitted to be
used or occupied, or utilized for desk space or for mailing privileges, by
anyone other than Tenant or for any purpose other than as permitted by this
Lease, without the prior written consent of Landlord in every case, except as
expressly otherwise provided in this Article which consent shall not be
unreasonably withheld.

18.02 If this Lease be assigned, whether or not in violation of the provisions
of this lease, Landlord may collect rent from the assignee. If the Demised
Premises or any part thereof be sublet or be used or occupied by anybody other
than Tenant, whether or not in violation of this Lease, Landlord may, after
default try

<PAGE>

          Tenant, and expiration of Tenant's time to cure such default,
          collect rent from the subtenant or occupant. In either event,
          Landlord may apply the net amount collected to the rents herein
          reserved, but no such assignment, subletting, occupancy or
          collection shall be declared a waiver of any of the provisions of
          section 18.01, or the acceptance of the assignee, subtenant or
          occupant as tenant, or a release of tenant from the further
          performance by tenant if Tenant's obligations under this Lease. The
          consent by Landlord to assignment, mortgaging or subletting, or use
          of occupancy by others shall in no wise by considered to relieve
          Tenant from obtaining the express written consent of Landlord to
          any other or further assignment, mortgaging, or subletting or use
          of occupancy by others not expressly permitted by this Article.
1.2  Tenant agrees to pay to Landlord reasonable counsel fees incurred by
Landlord in connection with any proposed assignment of Tenant's interest in this
Lease or any proposed subletting of the Demised Premises or any part thereof,
References in this Lease to use or occupancy by others, that is anyone other
than Tenant, shall not be construed as limited to subtenants and those claiming
under or through Tenant, immediately or remotely.

18.03 Tenant may, upon written notice to Landlord, but without Landlord's
written consent, permit any corporations or other business entities which
control, are controlled by, or are under common control with Tenant (herein
called "related corporations") to use the whole or part of Demised Premises for
any purposes permitted to Tenant, subject however to compliance with Tenant's
obligations under the Lease. Such use shall not be deemed to vest in any such
related corporation any right or interest in this Lease or in the Demised
Premises, nor shall such use release, relieve, discharge or modify any of
Tenant's obligations hereunder.

18.04 With respect to any proposed assignment of this Lease or proposed
subletting at all or a portion of the Demised Premises:

(A) Tenant shall submit to the Landlord a request for consent to such assignment
or sublease together with the name and address of the proposed assignee or
sublessee and such information as to its financial responsibility and standing
as Landlord may require upon receipt or such request and upon the furnishing of
such information by the Tenant, Landlord shall have the option to cancel and
terminate this Lease (i) completely, if the request was for an assignment of
this Lease or subletting of all of the Demised Premises, or (ii) if such request
was for a subletting of a portion of the Demised Premises, then with respect to
such portion.

(B) Landlord shall exercise such option to cancel and terminate by notice in
writing to that effect to Tenant within ten (10) days from receipt of Tenant's
request and the information set forth above, and Landlord's notice shall set
forth the date of cancellation, which date shall be no less then sixty (60) nor
more than ninety (90) days from the date of the service of Landlord's notice. If
such option is so exercised, then upon such date of cancellation the lease for
the entire Demised Premises or specified portion thereof, as the case may be,
shall cease and terminate with the same force and effect as though the date set
forth in the notice were the date set forth in this Lease at the expiration of
the Term, and the Tenant shall surrender possession of the entire Demised
Premises, or portion thereof, as the case may be, in accordance with the
provisions of the Lease relating to surrender of the Demised Premises at the
expiration of the Term. If Landlord exercises the option to cancel the Lease, as
to a portion of the Demised Premises only, the terms of this Lease shall remain
in full force as to the remainder of the Demised Premises, for the balance of
the Term, except to the extent that the area of the Demised Premises is reduced
with a proportionate reduction in rent.

(C) If Landlord does not exercise its option to cancel as aforementioned than
Tenant may assign or sublet all or a portion of the Demised Premises, provided
that Landlord has given its prior written consent and provided further that: (i)
the Tenant is not then in default hereunder; (ii) the rental provided for in
such assignment or sublease is not less than the rental provided for herein;
(iii) the Demised Premises are to be used for executive offices only by a
person, firm or corporation engaged in a lawful commercial business (other than
a business operating data processing machinery in the Demised Premises larger
than desk top size), or for a similar use as Tenant's, but not for the practice
of medicine, (iv) such assignee or sublessee shall be financially responsible
and of good reputation; (v) the business of such assignee or sublessees or the
use to which such Demised Premises shall be put shall not be violation of any
restriction against competition contained in any other lease to which Landlord
is a party; (vi) the assignee or sublessee is not engaged in the containerized
shipping business or as a governmental agency of a communist agency and (vii) a
duplicate original of an instrument in writing assigning this Lease or
subletting the Demised Premises, duly executed by the assignor or sublessor and
assignee or sublessee, as the case may be, in recordable form, containing
therein an assumption by said assignee or an agreement by said sublessee to take
subject to (and an agreement by Tenant to remain liable to Landlord for) all the
terms and conditions of this Lease on the part of the Tenant to be performed

(D) The provisions of this Article 18 shall apply to each such proposed
subletting, none of which shall be effective until all of the foregoing shall
have been complied with. Notwithstanding any subletting, Tenant and any future
sublessor shall remain liable for the full performance of all the terms and
conditions of this lease on the part of the Tenant to be performed.

18.05 Tenant shall not offer to assign or sublet either the entire Demised
Premises or a specified portion thereof to any other Tenant in the Building or
to any party in negotiations with Landlord to lease a portion of the Building.

<PAGE>

               ARTICLE 19 -- COMPLIANCE WITH LAWS AND REQUIREMENTS
                   OF PUBLIC AUTHORITIES: RULES & REGULATIONS

     19.01 Tenant shall promptly notify Landlord of any written notice it
receives of the violation of any law or requirements which shall, with respect
to the Building or the Demised Premises or the use and occupation thereof or the
abatement of any nuisance, impose any violation, order or duty on Landlord or
Tenant, arising from (i) Tenant's use of the Demised Premises, (ii) the manner
of conduct of Tenant's business or operation of its installations, equipment or
other property therein, (iii) any cause or condition created by or at the
instance of Tenant, or (iv) breach of any of Tenant's obligations hereunder

     19.02 Tenant shall promptly furnish to Landlord all information
requested by Landlord which may be required for all reports to be filed by
Landlord in accordance with any directives of the Secretary of the United States
Department of Housing and Urban Development or any statute, rule or regulation
of the United States Department of Housing and Urban Development in connection
with the Urban Development Action Grant used to finance part of the construction
of the Building.

     19.03 Tenant and its employees and agents shall faithfully observe and
comply with the Rules and Regulations annexed hereto as Exhibit "B" and such
reasonable changes therein (whether by modification, elimination or addition) as
Landlord at any time or times hereafter may make and communicate in writing to
Tenant, which do not unreasonably affect the conduct of Tenant's business in the
Demised Premises; provided, however, that in case of any conflict or
inconsistency between the provisions of this Lease and any Rules and Regulations
changed subsequent to the date of this Lease the provisions of this Lease shall
control.

     19.04 Nothing in this Lease contained shall be construed to impose upon
Landlord any duty or obligation to Tenant to enforce the Rules and Regulations
or the terms, covenants or conditions in any other lease, as against any other
tenant unless requested to do so by Tenant, but Landlord shall not be liable to
Tenant for violation of the same by any other tenant or its employees, agents or
visitors.

                          ARTICLE 20 -- QUIET ENJOYMENT

20.01 Landlord covenants that if, and so long as, Tenant pays all of the Fixed
Rent and additional rent due hereunder, and keeps and performs each and every
covenant, agreement, term, provision and condition herein contained on the part
and on behalf of Tenant to be kept and performed, Tenant shall quietly enjoy the
Demised Premises without hinderance or molestation by Landlord or any other
person lawfully claiming the same, subject to the covenants, agreements, terms,
provisions and conditions of this Lease and to any superior leases and/or
superior mortgages.

                  ARTICLE 21-- NON-LIABILITY & INDEMNIFICATION

     21.01 Neither Landlord nor any agent or employee of Landlord shall be
liable to Tenant, its employees, agents, contractors and licensees, and Tenant
shall hold Landlord harmless from any injury or damage to Tenant or to any other
persons for any damage to, or loss (by theft or otherwise) of, any property of
Tenant and/or of any other person, irrespective of the cause of such injury,
damage or loss, unless caused by or due to the gross negligence of Landlord, its
agents or employees without contributory negligence on the part of Tenant.
Landlord shall not be liable in any event for loss of, damage to, any property
entrusted to any of Landlord's employees or agents by Tenant without Landlord's
specific written consent.

     21.02 Tenant shall defend, indemnify and save harmless Landlord and
its agent and employees against and from all liabilities, obligations, damages,
penalties, claims, costs, charges and expenses, including reasonable experts'
and attorneys' fees, which may be imposed upon or incurred by or asserted
against Landlord and/or its agents by reason of any of the following occurring
during the Term, or during any period of time prior to the Commencement Date
that Tenant may have been given access to or possession of all or any part of
the Demised Premises: (a) any work or thing done in on or about the Demised
Premises or any part thereof by or at the instance of Tenant, its agents,
contractors, subcontractors, servants, employees, licensees or invitees; (b) any
negligence or otherwise wrongful act or omission on the part of Tenant or any of
its agents, contractors, subcontractors, servants, employees, subtenants,
licensees, or invitees; (c) any accident, injury or damage to any person or
property occurring in on or about the Demised Premises or any part thereof, or
vault, passageway or space adjacent thereto; (d) any failure on the part of
Tenant to perform or comply with any of the covenants, agreements, terms,
provisions, conditions or limitations contained in this Lease on its part to be
performed or complied with. In case any action or proceeding is brought against
Landlord by reason of any such claim, Tenant upon written notice from Landlord
shall at Tenant's expense resist or defend such action or proceeding by counsel
approved by Landlord in writing, which approval Landlord shall not unreasonab]y
withhold.

21.03 Whenever either party shall be obligated under the terms of this Lease to
indemnify the other party, the indemnifying party may select legal counsel
(subject to the consent of the indemnified party, which consent shall not be
unreasonably withheld) and shall keep the indemnified party fully appraised at
all times of the status of such defense. Legal counsel of the insurer for either
party is hereby deemed

<PAGE>

satisfactory to both parties.

21.04 Except as otherwise expressly provided herein, this Lease and the
obligations of Tenant to pay rent hereunder and perform all of the other
covenants, agreements, terms, provisions and conditions hereunder on the part of
Tenant to be performed shall in no wise be affected, impaired or excused because
Landlord is unable to fulfill any of its obligations under this Lease or is
unable to supply or is delayed in supplying any service, express or implied, to
be supplied or is unable to make or is delayed in supplying any equipment or
fixtures if Landlord is prevented or delayed from so doing by reason of any
Unavoidable Delays, as defined in Section 3.02 hereof; provided that Landlord
shall in each instance exercise reasonable diligence to effect performance when
and as soon as possible. However, nothing contained in this Section shall be
deemed to extend or otherwise modify or affect any of the time limits and
conditions set forth in Section 22.03.

                      ARTICLE 22 -- DESTRUCTION AND DAMAGE

22.01 If the Demised Premises and/or access thereto shall be partially or
totally damaged or destroyed by fire or other casualty, then, Landlord shall,
subject to its rights under Section 22.03 hereof, repair the damage and restore
and rebuild the Demised Premises and/or access thereto as nearly as may be
reasonably practical to its condition and character immediately prior to such
damage or destruction, with reasonable diligence after notice to it of the
damage or destruction.

22.02 If the Demised Premises and/or access thereto shall be partially or
totally damaged or destroyed by fire or other casualty not attributable to the
fault, negligence or misuse of the Demised Premises by the Tenant, its agent or
employees under the provisions of this Lease, the rents payable hereunder shall
be abated to the extent that the Demised Premises shall have been rendered
untenantable from the date of such damage or destruction to the date the damage
shall be substantially repaired or restored or rebuilt. Should Tenant reoccupy a
portion of the Demised Premises during the period that the repair, restoration,
or rebuilding is in progress and prior to the date that the same are made
completely tenantable, rents allocable to such portion shall be payable by
Tenant from the date of such occupancy to the date the Demised Premises are made
tenantable.

22.03 In case of substantial damage or destruction of the Demised Premises,
Tenant may terminate this Lease by notice to Landlord, if Landlord has not
completed the making of required repairs and restored and rebuilt the Demised
Premises and/or access thereto within 12 months from the date of such damage or
destruction, and such additional time after such date (but in no event exceed 9
months) as shall equal the aggregate period Landlord may have been delayed in
doing so by adjustment of insurance or Unavoidable Delays.

In case the Building shall be so damaged by such fire or other casualty that
substantial renovation, reconstruction or demolition of the Building shall, in
Landlord's opinion, be required (whether or not the Demised Premises shall have
been damaged by such fire or other casualty), then Landlord may, at its option,
terminate this Lease and the Term and estate hereby granted, by notifying Tenant
of such termination, within sixty (60) days after the date of such damage. If at
any time prior to Landlord giving tenant the aforesaid notice of termination or
commencing the repair and restoration pursuant to Section 22.01, the holder of a
superior mortgage or the lessor of a superior lease or any person claiming under
or through the holder of such superior mortgage or the lessor of such superior
lease takes possession of the Building through foreclosure or otherwise, such
holder, lessor, or person shall have a further period of sixty (60) days from
the date of so taking possession to terminate this Lease by appropriate written
notice to Tenant. In the event that such a notice of termination shall be given
pursuant to either of the next two preceding sentences, this Lease and the Term
and estate hereby granted shall expire as of the date of such termination with
the same effect as if that were the date hereinabove set for the expiration of
the Term, and the Fixed Rent and additional rent due and to become due hereunder
shall be apportioned as of such date if not earlier abated pursuant to Section
22.02. Nothing contained in this Section 22.03 shall relieve Tenant from any
liability to Landlord or to its insurers in connection with any damage to the
Demised Premises or the Building by fire or other casualty if Tenant shall be
legally liable in such respect.

22.04 No damages, compensation or claim shall be payable by Landlord for
inconvenience, loss of business or annoyance arising from any repair or
restoration of any portion of the Demised Premises or of the Building pursuant
to this Article. Landlord shall use its best efforts to effect such repair or
restoration promptly and in such manner as not unreasonably to interfere with
Tenant's use and occupancy.

22.05 Landlord will not carry insurance of any kind on Tenant's Property, and,
except as provided by law or its breach of any of its obligations hereunder,
shall not be obligated to repair any damage thereto or replace the same.

22.06 The provisions of this Article shall be considered an express agreement
governing any case of damage or destruction of the Demised Premises by fire or
other casualty, and any statute or regulation providing for such a contingency
in the absence of, an express agreement, now or hereafter in force, shall have
no application in such case.

<PAGE>

22.07 Landlord shall maintain appropriate insurance for the Building.
Notwithstanding any of the foregoing provisions of this Lease if Landlord or the
lessor of any superior lease or the holder of any superior mortgage shall be
unable to collect all of the insurance proceeds (including rent insurance
proceeds) applicable to damage or destruction of the Demised Premises or the
Building by fire or other cause, by reason of some action or inaction on the
part of Tenant or any of its employees, agents or contractors, then, without
prejudice to any other remedies which may be available against Tenant, the
abatement of Tenant's rents provided for in this Article shall not be effective
to the extent of the uncollected insurance proceeds.

                          ARTICLE 23 -- EMINENT DOMAIN

23.01 In the event that the land, Building or any part thereof, or the Demised
Premises or any part thereof, shall be taken in condemnation proceedings or by
the exercise of any right of eminent domain or by agreement between any superior
lessors and lessees and/or Landlord on the one hand and any governmental
authority authorized to exercise such right on the other hand, Landlord shall be
entitled to collect from any condemnor the entire award or awards that may be
made in any such proceeding without deduction therefrom for any estate hereby
vested in or owned by Tenant, to be paid out as in this Article provided. Tenant
hereby expressly assigns to Landlord all of its right, title and interest in or
to every such award (with the exception of that portion of the award
specifically allocated as Tenant's moving expenses, to the extent that the same
does not decrease Landlord's award) and also agrees to execute any and all
further documents that may be required in order to facilitate the collection
thereof by Landlord,

23.02 At any time during the Term if title to the whole or substantially all of
the land, Building and/or Demised Premises shall be taken in by condemnation
proceedings or by the exercise of any right of eminent domain or by agreement
between any superior lessors and lessees and/or Landlord on the one hand and any
governmental authority authorized to exercise such right on the other hand, this
Lease shall terminate and expire on the date of such taking and the Fixed Rent
and additional rent provided to be paid by Tenant shall be apportioned and paid
to the date of such taking.

23.03 However, if substantially all of the land or Building is not so taken and
if only a part of the entire Demised Premises shall be so taken, this Lease
nevertheless shall continue in full force and effect, except that either party
may elect to terminate this Lease if that portion of the Demised Premises then
occupied by Tenant shall be reduced by more than 25%, by notice of such election
to the other party given not later than thirty (30) days after (i) notice of
such taking is given by the condemning authority, or (ii) the date of such
taking, whichever occurs later. Upon the giving of such notice this Lease shall
terminate on the date of service of such notice and the Fixed Rent and
additional rent due and to become due, shall be prorated and adjusted as of the
date of the taking. If both parties fail to give such notice upon such partial
taking, and this Lease continues in force as to any part of the Demised Premises
not taken, the rents apportioned to thc part taken shall be prorated and
adjusted as of the date of taking and from such date the Fixed Rent and
additional rent shall be reduced to the amount apportioned to the remainder of
the Demised Premises, and the Tenant's Share shall be recomputed to reflect the
number of square feet of Tenant's Floor Space remaining in the Demised Premises
in relation to the number of square feet of Total Building Floor Space remaining
in the Building.

23.04 Notwithstanding the foregoing provisions of this Article and subject to
the interest of any mortgagees or lessor or grantor under any superior mortgage
or superior lease, Tenant shall be entitled to appear, claim, prove and receive
in the proceedings relating to any taking mentioned in the preceding Sections of
this Article, such portion of each award made therein as represents the then
value of Tenant's Property.

23.05 In the event of any such taking of less than the whole of the Building
which does not result in a termination of this Lease, Landlord, at its expense,
shall proceed with reasonable diligence to repair, alter and restore the
remaining part of the Building and the Demised Premises to substantially the
same condition as it was in immediately prior to such taking to the extent that
the same may be feasible, so as to constitute a tenantable Building and Demised
Premises, providing that Landlord's liability under this Section shall be
limited to the amount received by Landlord as an award arising out of such
taking.

                             ARTICLE 24 -- SURRENDER

24.01 On the last day of the Term, or upon any earlier termination of this
Lease, or upon any re-entry by Landlord upon the Demised Premises, Tenant shall
quit and surrender the Demised Premises to the Landlord broom clean, in good
order, condition and repair except for ordinary wear and tear and damage by fire
or other insured casualty, restored as provided in Section 12.01.

<PAGE>

         24.02 Prior to such surrender, Tenant shall (a) remove Tenant's
Property subject to the provisions of Article 13 hereof, (b) at Landlord's
request remove from the Demised Premises all improvements, alterations,
additions, fixtures and equipment (sometimes herein called "additional work")
other than Tenant's work attached hereto as Exhibit C, whether such additional
work was performed by Tenant or by Landlord on Tenant's behalf, and whether such
additional work consisted of extra or special work or additional items or
quantities of Building standard work, and (c) at Landlord's request, repair any
damage and make any replacements to the Building or the Demised Premises
resulting from or necessitated by such removal, and restore those parts of the
Demised Premises from which the removal referred to in subparagraphs (a) and (b)
above occurred, to a condition which will blend with and be comparable to
adjacent areas. Tenant's removal and repair obligations hereunder with respect
to the Demised Premises shall extend to the core area or any other part of the
Building where any additional work was performed by or on behalf of Tenant. If
Tenant shall fail to perform as provided in this Section 24.02, Landlord shall
have the right to do so at Tenant's cost and expense, without further notice or
demand upon Tenant, and Tenant shall indemnify Landlord against all loss or
liability resulting therefrom, including, without limitation, any delay in
granting occupancy of the Demised Premises to a future occupant.

                      ARTICLE 25-- CONDITIONS OF LIMITATION

25.01 This Lease and the estate hereby granted are subject inter alia to the
limitation that whenever Tenant shall make an assignment for the benefit of
creditors, or shall file a voluntary petition under any bankruptcy or insolvency
law, or an involuntary petition alleging an act of bankruptcy or insolvency is
filed against Tenant, or whenever a petition shall be filed by or against Tenant
seeking any reorganization, arrangement, composition, readjustment, liquidation,
dissolution or similar relief under any present or any future federal bankruptcy
act or any other present or future applicable federal, state or other statute or
law, or shall seek or consent to or acquiesce in the appointment of any trustee,
receiver or liquidator of Tenant or of all or any substantial part of its
properties, or whenever a permanent or temporary receiver of Tenant or of, or
for, the property of Tenant shall be appointed, or if Tenant shall plead
bankruptcy or insolvency as a defense in any action or proceeding, then,
Landlord, (a) at any time after receipt of notice of the occurrence of any such
event, or (b) if such event occurs without the acquiescence of Tenant, at any
time after the event continues for sixty (60) days, may give Tenant a notice of
intention to end the Term at the expiration of five (5) days from the service of
such notice of intention, and upon the expiration of said five (5) day period
Lease and the Term and estate hereby granted, whether or not the Term shall
theretofore have commenced, shall terminate with the same effect as if that day
were the Expiration Date, but Tenant shall remain liable for damages as provided
as in Article 27.

      25.02 This Lease and the Term and estate hereby granted and subject to
the further limitation that, (a) whenever Tenant shall default in the payment
of any installment of Fixed Rent, or in the payment of any additional rent,
on any day upon which the same shall be due and payable and such default
shall continue for five (5) days after the giving of notice thereof by
Landlord, or (b) whenever Tenant shall do or permit anything to be done,
whether by action or inaction, contrary to any of Tenant's obligations
hereunder, and if such situation shall continue and shall not be remedied by
Tenant within fifteen (15) days after Landlord shall have given to Tenant a
notice specifying the same, or, in the case of a happening or default which
cannot with due diligence be cured within a period of fifteen (15) days and
the continuance of which for the period required for cure will not subject
Landlord to the risk of criminal liability or termination of any superior
lease or foreclosure of any superior mortgage, if Tenant shall not duly
institute within such fifteen (15) day period and promptly and diligently
prosecute to completion all steps necessary to remedy the same, or (c)
whenever any event shall occur or any contingency shall arise whereby this
Lease or any interest therein or the estate hereby granted or any portion
thereof or the unexpired balance of the Term hereof would, by operation of
law or otherwise, devolve upon or pass to any person, firm or corporation
other than Tenant, except as expressly permitted by Article 18 or (d)
whenever Tenant shall abandon the Demised Premises, or a substantial portion
of the Demised Premises shall remain vacant for a period of ten (10)
consecutive days, unless such vacancy arises as a result of a casualty; then
in any such event covered by subsections a, b, c or d of this Section 25.2 at
any time thereafter, Landlord may give to Tenant a notice of intention to end
the Term of this Lease at the expiration of three (3) days from the date of
the service of such notice of intention, and upon the expiration of said
three (3) days this Lease and the Term and the estate hereby granted, whether
or not the Term shall theretofore have commenced, shall terminate with the
same effect as if that day were the Expiration Date, but Tenant shall remain
liable for damages as provided in Article 27.

                   ARTICLE 26-- RE-ENTRY BY LANDLORD --DEFAULT
                                   PROVISIONS

26.01 If this Lease shall terminate for any reason whatsoever, Landlord or
Landlord's agents and employees may, without further notice, immediately or at
any time thereafter, enter upon and re-enter the Demised Premises, or any part
thereof, and possess or repossess itself thereof either by summary dispossess
proceedings, ejectment or by any suitable action or proceeding at law, or by
agreement, or by force or otherwise, and may dispossess and remove Tenant and
all other persons and property from the Demised Premises without being liable to
indictment, prosecution or damages therefor, and may repossess the same, and may
remove any persons therefrom, to the end that Landlord may have, hold and

<PAGE>

enjoy the Demised Premises and the right to receive all rental income again
as and of its first estate and interest therein. The words "enter" or
"re-enter", "possess" or "repossess" as herein used, are not restricted to
their technical legal meaning. In the event of the termination of this Lease,
or of re-entry by summary dispossess proceedings, ejectment or by any
suitable action or proceeding at law, or by agreement, or by force or
otherwise by reason of default hereunder on the part of Tenant, Tenant shall
thereupon pay to Landlord the Fixed Rent and additional rent due up to the
time of such termination of this Lease or of such recovery of possession of
the Demised Premises by Landlord, as the case may be, and shall also pay to
Landlord damages as provided in Article 27.

         26.02 In the event of any breach or threatened breach by Tenant of any
of the agreements, terms, covenants or conditions contained in this Lease,
Landlord shall be entitled to enjoin such breach or threatened breach and shall
have the right to invoke any right and remedy allowed at law or in equity or by
statute or otherwise as though re-entry, summary proceedings, and other remedies
were not provided for in this Lease.

         26.03 Each right and remedy of Landlord provided for in this Lease
shall be cumulative and shall be in addition to every other right or remedy
provided for in this Lease or now or hereafter existing at law or in equity or
by statute or otherwise, and the exercise or beginning of the exercise by
Landlord of any one or more of the right or remedies provided for in this lease
or now or hereafter existing at law or in equity or by statute or otherwise
shall not preclude the simultaneous or later exercise by Landlord of any or all
other rights or remedies provided for in this Lease or now or hereafter existing
at law or in equity or by statue or otherwise,

         26.04 If this Lease shall terminate under the provisions of Article 25,
or if Landlord shall re-enter the Demised Premises under the provisions of this
Article 26, or in the event of the termination of this Lease, or of re-entry, by
or under any summary dispossess or other proceeding or action or any provision
of law by reason of default hereunder on the part of Tenant, Landlord shall be
entitled to retain all monies, if any, paid by Tenant to Landlord, whether as
advance rent, security or otherwise, but such monies shall be credited by
Landlord against any Fixed Rent or additional rent due from Tenant under Article
27 or pursuant to law.

                              ARTICLE 27 -- DAMAGES

27.01 If this Lease is terminated under the provisions of Article 25, or if
Landlord shall re-enter the Demised Premises under the provisions of Article 26
or in the event of the termination of this Lease, or of re-entry by summary
dispossess proceedings, ejectment or by any suitable action or proceeding at
law, or by agreement, or by force or otherwise, by reason of default hereunder
on the part of Tenant, Tenant shall pay to landlord as damages, at the election
of Landlord, on demand either,

(a) a sum which at the time of such termination of this Lease or at the time of
any such re-entry by Landlord, as the case may be, represents the excess of (1)
the aggregate of the Fixed Rent and the additional rent payable hereunder which
would have been payable by Tenant (conclusively presuming the additional rent to
be the same as was payable for the year immediately preceding such termination)
for the period commencing with such earlier termination of this Lease or the
date of any such re-entry, as the case may be, and ending with the expiration of
the Term, had this Lease not so terminated or had Landlord not so re-entered the
Demised Premises over (2) the aggregate rental value (calculated as of the date
of such termination or re-entry) of the Demised Premises for the same period,
or,

(b) a sum equal to the Fixed Rent and the additional rent (as above presumed)
payable hereunder which would have been payable by Tenant had this Lease not so
terminated, or had Landlord not so re-entered the Demised Premises, payable
quarterly or otherwise upon the terms therefor specified herein following such
termination or such re-entry and until the expiration of the Term, provided,
however, that if Landlord shall relet the Demised Premises or any portion or
portions thereof during said period, Landlord shall credit Tenant with the net
rents such net rents to be determined by first deducting from the gross rents as
and when received by Landlord from such reletting the expenses incurred or paid
by Landlord in terminating this Lease or in re-entering the Demised Premises and
in securing possession thereof, as well as the expenses of reletting, including
altering and preparing the Demised Premises or any portion or portions thereof
for new tenants, brokers' commissions, advertising expenses, attorneys' fees,
and all other expenses properly chargeable against the Demised Premises and the
rental therefrom; it being understood that any such reletting may be for a
period shorter or longer than the remaining Term of this Lease, but in no event
shall Tenant be entitled to receive any excess of such net rents over the sums
payable by Tenant to Landlord hereunder, nor shall Tenant be entitled in any
suit for the collection of damages pursuant to this Subsection to a credit in
respect of any net rents from a reletting, except to the extent that such net
rents are actually received by Landlord, If the Demised Premises or any part
thereof should be relet in combination with other space, then proper
apportionment shall be made of the rent received from such reletting and of the
expenses of reletting.

If the Demised Premises or any part thereof be relet by Landlord for the
unexpired portion of the Term, or any part thereof, before presentation of proof
of such damages to any court, commission, or tribunal, the amount of rent
payable upon such reletting shall, prima facie, be the fair and reasonable
rental value for the Demised Premises or any part thereof or evidence of damage
for failure to collect any rent due upon any such reletting.

<PAGE>

         27.02 Suit or suits for the recovery of such damages, or any
installments thereof, may be brought by Landlord from time to time at its
election, and nothing contained herein shall be deemed to require Landlord to
postpone suit until the date when the Term would have expired if it had not been
so terminated under the provision of Article 26, or under any provision of law,
or had landlord not re-entered the Demised Premises. Nothing herein contained
shall be construed to limit or preclude recovery by Landlord against Tenant of
any sums or damages to which, in addition to the damages particularly provided
above, Landlord may lawfully be entitled by reason of any default hereunder or
otherwise on the part of Tenant. Nothing herein contained shall be construed to
limit or prejudice the right of the Landlord to prove and obtain as damages by
reason of the termination of this Lease or re-entry on the Demised Premises for
the default of Tenant under this Lease, an amount equal to the maximum allowed
by any statute or rule of law in effect at the time when, and governing the
proceedings in which, such damages are to be proved whether or not such amount
be greater, equal to, or less than any of the sums referred to Section 27.01.

         27.03 Anything in this Lease to the contrary notwithstanding, if Tenant
shall at any time be in default hereunder, and if Landlord shall institute an
action or summary proceeding against Tenant based upon such default, or if such
default results from non-payment of Fixed Rent or additional rent whether or not
such an action or proceeding is instituted, then Tenant shall reimburse
Landlord, as additional rent, for the expense of attorneys' fees and
disbursements thereby incurred by Landlord, so far as the same are reasonable.

                              ARTICLE 28 -- WAIVERS

         28.01 Tenant, for itself, and on behalf of any and all persons claiming
through or under Tenant, including creditors of all kinds, does hereby waive and
surrender all right and privilege so far as is permitted by law, which they or
any of them might have under or by reason of any present or future law, of the
service of any notice of intention to re-enter and also waives any and all right
of redemption or re-entry or repossession in case Tenant shall be dispossessed
or ejected by process of law, or in case of re-entry or repossession by
Landlord, or in case of any expiration or termination of this Lease as herein
provided.

         28.02 Tenant waives Tenant's rights, if any, to designate the items
against which any payments made by Tenant are to be credited, and Tenant agrees
that Landlord may apply any payments made by Tenant to any items against which
any such payments shall be credited.

         28.03 Tenant waives Tenant's rights, if any, to assert a counterclaim
in any summary proceeding brought by Landlord against Tenant, and Tenant agrees
to assert any such claim against Landlord only by way of a separate action or
proceeding.

         28.04 To the extent permitted by applicable law, Landlord and Tenant
hereby waive trial by jury in any action, proceeding or counterclaim brought by
either against the other on any matter whatsoever arising out of or in any way
connected with this Lease, the relationship of Landlord and Tenant, or Tenant's
use of occupancy of the Demised Premises, or any emergency or other statutory
remedy with respect thereto.

         28.05 The provisions of Article 8 and 9 shall be considered express
agreements governing the services to be furnished by Landlord, and Tenant agrees
that any laws and/or requirements of public authorities, now or hereafter in
force, shall have no application in connection with any enlargement of
Landlord's obligations with respect to such services.

                 ARTICLE 29 -- NO OTHER WAIVERS OR MODIFICATIONS

         29.01 The failure of Landlord to insist on any one or more instances
upon the strict performance of any one or more of the agreements, terms,
covenants, conditions or obligations of this Lease, Exhibits and Riders thereto,
or to exercise any right, remedy or election herein contained, shall not be
construed as a waiver or relinquishment for the future of the performance of
such one or more obligations of this Lease or of the right to exercise such
election, but the same shall continue and remain in full force and effect with
respect to any subsequent breach, act or omission. The manner of enforcement or
the failure of Landlord to enforce any of the Rules and Regulations set forth
herein, or hereafter adopted against the Tenant and/or any other tenant in the
Building shall not be deemed a waiver of any such Rules and Regulations. No
executory agreement hereafter made between Landlord and Tenant shall be
effective to change, modify, waive, release, discharge, terminate or affect an
abandonment of this Lease, in whole or in part, unless such executory agreement
is in writing, refers expressly to this Lease and is signed by the party against
whom enforcement of the change, modification, waiver, release, discharge or
termination or effectuation of the abandonment is sought.

         29.02 The following specific provisions of this Section shall not be
deemed to limit the generality of the foregoing provision of this Article:

(a) no agreement to accept a surrender of all or any part of the Demised
Premises shall be valid unless in writing and signed by Landlord. The delivery
of keys to an employee of Landlord or of its agent shall

<PAGE>

not operate as a termination of this Lease or a surrender of the Demised
Premises. If Tenant shall at any time request Landlord to sublet the Demised
Premises for Tenant's account, Landlord or its agent is authorized to receive
said keys for such purposes without releasing Tenant from any of its
obligations under this Lease, and Tenant hereby releases Landlord from any
liability for loss or damage to any of Tenant's Property in connection with
such subletting.

(b) the receipt or acceptance by Landlord of rents with knowledge of breach by
Tenant of any term, agreement, covenant, condition or obligation of this Lease
shall not be deemed a waiver of such breach.

(c) no payment by Tenant or receipt by Landlord of a lesser amount than the
correct Fixed Rent or additional rent due hereunder shall be deemed to be other
than a payment on account, nor shall any endorsement or statement on any check
or any letter accompanying any check or payment be deemed to affect or evidence
an accord and satisfaction, and Landlord may accept such check or payment
without prejudice to Landlord's right to recover the balance or pursue any other
remedy in this Lease or provided at law.

(d) if, in connection with obtaining, continuing or renewing financing for which
the Building, land or a leasehold or any interest therein represents collateral
in whole or in part, a bank, insurance company or other lender shall request
reasonable

<PAGE>

modifications of this Lease as a condition of such financing, Tenant will not
unreasonably withhold, delay or defer its consent thereto, provided that such
modifications do not increase the obligations of Tenant hereunder or adversely
affect to a material degree the Tenant's leasehold interest hereby created.

             ARTICLE 30-- CURING TENANT'S DEFAULTS, ADDITIONAL RENT

         30.01 If Tenant shall default in the performance of any of its
obligations under this Lease, Landlord, without thereby waiving such default,
may (but shall not be obligated to) perform the same for the account and at the
expense of Tenant, without notice, in a case of emergency, and in any other
case, only if such default continues after the expiration of ten (10) days from
the date Landlord gives Tenant notice of intention so to do.

         30.02 Bills for any expenses incurred by Landlord in connection with
any such performance by it for the account of Tenant, and bills for all costs,
expenses and disbursements of every kind and nature whatsoever, including
reasonable counsel fees, involved in collecting or endeavoring to collect the
fixed rent or additional rent or any part thereof or enforcing or endeavoring to
enforce any rights against Tenant, under or in connection with this Lease, or
pursuant to law, including any such cost, expense and disbursement involved in
instituting and prosecuting summary proceedings, as well as bills for any
property, material, labor or services provided, furnished, or rendered, by
Landlord may be sent by Landlord to Tenant monthly, or presented immediately, at
Landlord's option, and, shall be due and payable in accordance with the terms of
such bills.

                   ARTICLE 31-- NOTICES -- SERVICE OF PROCESS

         31.01 Any notice, statement, demand, request or other communication
required or permitted pursuant to this Lease or otherwise shall be in writing
and shall be deemed to have been properly given if sent by registered or
certified mail, return receipt requested, postage prepaid, addressed to the
other party at the address hereinabove set forth (except that after the
Commencement Date, Tenant's address, unless Tenant shall give notice to the
contrary, shall be the Building), and shall be deemed to have been given on the
expiration of five (5) business days after mailing. Either party may, by notice
as aforesaid, designate a different address or addresses for notices,
statements, demands or other communications intended for it. However, notices
requesting after hours service pursuant to Sections 8.01 and 9.01 may be given,
provided they are in writing, by delivery to the Building Superintendent or any
other person in the Building designated by Landlord to receive such notices, and
notice of fire, accident or other emergency shall be given by telegram or by
personal delivery of written notice to that address designated for this purpose
from time to time by the respective parties hereto,

         31.02 Whenever either party shall consist of more than one person or
entity, any notice, statement, demand, or other communication required or
permitted, or any payment to be made shall be deemed duly given or paid if
addressed to or by (or in the case of payment by check, to the order of) any
such persons or entities who shall be designated from time to time as the
authorized representative of such party. Such party shall promptly notify the
other of the identity of such person or entity who is so to act on behalf of all
persons and entities then comprising such party and of all changes in such
identity.

         31.03 Tenant agrees to give any Mortgagee, by Certified Mail, a copy of
any Notice of Default served upon the Landlord by Tenant provided that prior to
such notice Tenant has been notified, in writing, (by way of Notice of
Assignment of Rents and Leases, or otherwise) of the address of such Mortgagee.
Tenant further agrees that if Landlord shall have failed to cure such default
within the time provided for in this Lease, then the Mortgagee shall have an
additional thirty (30) days within which to cure such default or if such default
cannot be cured within that time, then such additional time as may be necessary
if within such thirty (30) days, any Mortgagee has commenced and is diligently
pursuing the remedies necessary to cure such default, (including but not limited
to commencement of foreclosure proceedings, if necessary to effect such cure) in
which event this lease shall not be terminated while such remedies are being so
diligently pursued.

                 ARTICLE 32 -- ESTOPPEL CERTIFICATE, MEMORANDUM

         32.01 Tenant agrees, at any time and from time to time, as requested by
Landlord, upon not less than ten (10) days' prior notice, to execute and deliver
without cost or expense to the Landlord a statement certifying that this Lease
is unmodified and in full force and effect (or if there have been modifications,
that the same is in full force and effect except as modified and stating the
modifications), certifying the dates to which the Fixed Rent and additional rent
have been paid, and stating whether or not, to the best knowledge of the Tenant,
the Landlord is in default in performance of any of its obligations under this
Lease, and, if so, specifying each such default of which the Tenant may have
knowledge, it being intended that any such statement delivered pursuant thereto
may be relied upon by any other person with whom the Landlord may be dealing.
The foregoing obligation shall be deemed a substantial obligation of the
tenancy, the breach of which shall give Landlord those remedies herein provided
for an event of default.

<PAGE>

         32.02 Tenant agrees not to record this Lease. At the request of either
party, Landlord and Tenant shall promptly execute, acknowledge and deliver a
memorandum with respect to this Lease sufficient for recording which Tenant may
record. Such memorandum shall not in any circumstances be deemed to change or
otherwise affect any of the obligations or provision of this Lease.

                     ARTICLE 33 -- NO OTHER REPRESENTATIONS,
                           CONSTRUCTION, GOVERNING LAW

         33.01 Tenant expressly acknowledges and agrees that Landlord has not
made and is not making, and Tenant, in executing and delivering this Lease, is
not relying upon any warranties, representations, promises or statements, except
to the extent that the same are expressly set forth in this Lease or in any
other written agreement which may be made and executed between the parties
concurrently with the execution and delivery of this Lease and shall expressly
refer to this Lease. This Lease and said other written agreement(s) made
concurrently herewith are hereinafter referred to as the "lease documents". It
is understood and agreed that all understandings and agreements heretofore had
between the parties are merged in the Lease documents, which alone fully and
completely express their agreements and that the same are entered into after
full investigation, neither party relying upon any statement or representation
not embodied in the Lease documents, made by the other.

         33.02 If any of the provisions of this Lease, or the application
thereof to any person or circumstances shall, to any extent, be invalid or
unenforceable, the remainder of this Lease, or the application of such provision
or provisions to persons or circumstances other than those as to whom or which
it is held invalid or unenforceable, shall not be affected thereby, and every
vault space and all such areas not within the property line of the Building,
which Tenant may be permitted to use and/or occupy, is to be used and/or
occupied under a revocable license, and if any such license be revoked, or if
the amount of such space or area be diminished or required by any federal, state
or municipal authority or public utility, Landlord shall not be subject to any
liability nor shall Tenant be entitled to any compensation or diminution or
abatement of rent nor shall such revocation diminution or requisition be deemed
constructive or actual eviction. Any tax fee or charge of municipal authorities
for such vault or area shall be paid by Tenant.

                       ARTICLE 37 -- INABILITY TO PERFORM

This Lease and the obligation of Tenant to pay rent hereunder and perform all of
the other covenants and agreements hereunder on part of Tenant to be performed
shall in no wise be affected, impaired or excused because Landlord is unable to
fulfill any of its obligations under this lease or 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 repair, 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 strike or labor
troubles or any cause whatsoever including but not limited to, government
preemption in connection with a National Emergency or by reason of 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.

                       ARTICLE 38 -- LIABILITY OF LANDLORD

Tenant shall look solely to the estate and interest of landlord, its successors
and assigns, in the land and Building for the collection of a judgment (or other
judicial process) requiring the payment of money by Landlord in the event of any
default by Landlord hereunder, and no other property or assets of Landlord shall
be subject to levy, execution or other enforcement procedure for the
satisfaction of Tenant's remedies under or with respect to either' this Lease,
the relationship of Landlord and Tenant hereunder or Tenant's use and occupancy
of the Demised Premises. Neither the partners comprising Landlord (the
"Partners"), nor the partners, shareholders, directors and officers of Landlord
or the Partners shall be liable for the performance of Landlord's obligations
under this Lease,

                              ARTICLE 39--BROKERAGE

Tenant represents and warrant that it has dealt only with Dolan Realty, Inc, and
Archie Schwartz Company in connection with this Lease and Tenant does hereby
agree to indemnify and hold harmless the Landlord of and from any and all loss,
costs, damage or expense (including, without limitation, attorneys' fees and
disbursements) incurred by the Landlord by reason of any claim of or liability
to any other broker who shall claim to have dealt with Tenant in connection with
this Lease.

                      ARTICLE 40--EARLY TERMINATION OPTION

40.01 At any time subsequent to the end of the sixtieth (60) month of the Term
of the Lease, Tenant, at Tenant's option may terminate this Lease upon (i) at
least three (3) months prior written notice by Tenant

<PAGE>

of Tenant's intent to terminate the Lease at specified date (hereinafter the
"Early Termination Date") and (ii) payment by Tenant to Landlord of an Early
Lease Termination Fee equal to all unamortized costs of Landlord, for
brokerage commissions and attorneys fees and costs associated with the Lease
plus a sum equal to twenty-five (25%) percent of the Fixed Rent for the
remaining term of the Lease,

      40.02 All of Tenant's duties and responsibilities set forth in Article 24
shall be binding upon Tenant in the event of an early termination of this Lease
pursuant to this Article 40.

                      ARTICLE 41--MISCELLANEOUS PROVISIONS

41.01 All work, including but not limited to, waxing or additional cleaning that
Tenant does or shall do in the Demised Premises, shall be done by contractors
employing union labor, approved in writing by Landlord and shall at all times
conform to the standards of the Building and shall comply with all laws and/or
requirements of public authorities. Tenant, as additional rent, shall indemnify
and hold harmless Landlord against any loss or damage Landlord may sustain by
reason of, and against, any order, decrees, judgments, attorney's fees and
expenses resulting from, failure of Tenant to comply with the provisions hereof.

41.02 The Article headings in this Lease and the Table of Contents prefixed to
this Lease are inserted only as a matter of convenience or reference, and are
not to be given any effect whatsoever in construing this Lease.

IN WITNESS WHEREOF, the parties hereto have executed this instrument the day and
year first above written.

                                    LANDLORD:

                                        EVERGREEN AMERICA CORPORATION

                                        By: __________________________

Witness for Landlord

                                     TENANT:

                                        PT-1 COMMUNICATIONS, INC.

                                        By: __________________________

                                        Its: __________________________
                                                 (Title)

Witness for Tenant

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