Document:

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                                                                 EXHIBIT 10.19

STATE OF TENNESSEE

                                            ASSIGNMENT OF LEASE AND
                                            CONSENT OF LANDLORD

COUNTY OF WILLIAMSON

                                            RE:   7029 Church Street East
                                                  Brentwood, TN

         THIS ASSIGNMENT OF LEASE AND CONSENT OF LANDLORD is made and entered
into effective as of August 1, 2000 by FRANKLIN NATIONAL BANK (hereinafter
called "Assignor"), PINNACLE FINANCIAL PARTNERS, INC., formerly TMP, INC., a
Tennessee Corporation (a registered bank holding company under the Federal Bank
Holding Company Act of 1956, as amended, and a 100% owner of Pinnacle National
Bank, N.A. in formation), (hereinafter called "Assignee"), and Stearns
Investments, a Delaware General Partnership, JACK J. STEARNS and wife, EDNA
STEARNS, General Partners, of San Pedro, California (hereinafter called
"Landlord").

                                   WITNESSETH:

         In consideration of the mutual covenants and agreements set forth
herein and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, Assignor, Assignee, and Landlord hereby agree as
follows:

         1. ASSIGNMENT BY ASSIGNOR. In accordance with the Agreement for
Assignment of Lease dated July 17, 2000, between Assignor and Assignee, and in
consideration of that payment due from Assignee to Assignor as provided therein,
Assignor hereby assigns, transfers and conveys unto Assignee all of Assignor's
right, title and interest as tenant (i) in, to and under that certain Lease
Agreement entered into originally by Nashville City Bank and Trust Company,
Inc., as tenant and Jack J. Stearns and wife, Edna Stearns, as Landlord, dated
April 1, 1985 (referred to as the "Lease") relating to leased premises and
improvements located at 7029 Church Street East, Brentwood, Williamson County,
Tennessee (referred to as the "Leased Premises"), (ii) in and to any buildings,
leasehold improvements, fixtures or equipment on said property, including the
items of personal property described on Exhibit B attached hereto, and (iii) in
and to any right to extend or renew the term of the Lease; subject, however, to
the following terms and conditions:

         (a)      The effective date of the assignment of the Lease (the
                  "Assignment Date") shall be August 1, 2000. Assignor agrees to
                  vacate the Leased Premises on July 31, 2000, the "Possession
                  Date", and possession of the Leased Premises shall be
                  delivered to Assignee as of said date. Until the Possession
                  Date, Assignor shall have the right to remain in possession of
                  the Leased Premises under the Lease;

         (b)      Through and including the Possession Date, Assignor shall be
                  liable for the payment of (i) the monthly rent due under the
                  Lease and (ii) any and all other costs and expenses due under
                  the Lease, including, without limitation, those relating to
                  taxes, insurance, repairs, maintenance, and utilities, that
                  may be payable under the Lease or that may be incurred with
                  respect to the Leased Premises, prorated as appropriate;

                                                                               1
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         (c)      As of the Assignment Date, Assignee shall deliver to Assignor
                  the payment due under the Agreement for Assignment of Lease
                  dated July 17, 2000, between Assignor and Assignee. Beginning
                  the day after the Possession Date, Assignee shall be liable
                  for the payment of (i) the monthly rent due under the Lease
                  and (ii) any and all other costs and expenses due under the
                  Lease, including, without limitation, those relating to taxes,
                  insurance, repairs, maintenance, and utilities, that may be
                  payable under the Lease or that may be incurred with respect
                  to the Leased Premises, prorated as appropriate;

         (d)      Assignor's interest in the Leased Premises and in the items
                  described on Exhibit B attached hereto, and in the leasehold
                  improvements, fixtures or equipment on said property are being
                  assigned to Assignee in their "AS IS/WHERE IS" condition,
                  without warranty, express or implied, as to the condition or
                  merchantability thereof or the fitness thereof for any
                  particular use or purpose, and Assignor's interest in the
                  Leased Premises is subject to any liens, easements,
                  rights-of-way, restrictions or other matters affecting title
                  to said property.

         2. ACCEPTANCE BY ASSIGNEE. Assignee hereby accepts the assignment of
the Lease upon the terms and conditions hereof, agrees to assume and perform
directly any and all of the duties and obligations of Assignor as tenant under
the Lease, agrees to abide by the terms and conditions of the Lease, and agrees
to indemnify and hold harmless Assignor from and against any and all claims,
damages and liabilities arising from or relating to the Lease as to matters
occurring on or after the Possession Date.

         3. ASSIGNOR'S REPRESENTATIONS. Assignor hereby confirms unto Assignee
as follows:

         (a)      Assignor is the sole tenant under the Lease and is the sole
                  owner of the tenant's interest thereunder; and Assignor holds
                  valid leasehold title to the Lease and the buildings,
                  leasehold improvements, fixtures and equipment assigned
                  hereby.

         (b)      Assignor has not previously assigned the Lease or any interest
                  therein, the security or otherwise, or sublet the property
                  subject to the Lease, in whole or in part.

         (c)      Subject to Landlord's consent, Assignor has the full right and
                  authority to assign the Lease and all of Assignor's rights
                  contained therein and Assignor knows of no circumstance which
                  would prevent this assignment of the Lease from being valid
                  and binding upon Assignor in all respects.

         (d)      The Lease has not been modified, or amended in any manner
                  except as shown on Exhibit A attached hereto, and the Lease is
                  in full force and effect as of the date hereof.

         (e)      Assignor is not in default under the Lease, and no
                  circumstances or conditions exist which, either now or by the
                  passage of time, would constitute a default under the Lease or
                  would entitle Landlord

                                                                               2
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                  to terminate the Lease or abridge Assignor's rights
                  thereunder.

         (f)      All rentals due and payable under the Lease as of the date
                  hereof have been paid and will have been paid by Assignor as
                  of the Date of Possession.

         (g)      Assignor agrees to indemnify and hold harmless Assignee from
                  and against any and all claims, damages and liabilities
                  arising from or relating to the Lease as to matters occurring
                  prior to the Possession Date.

         4. LANDLORD'S REPRESENTATIONS. Landlord hereby confirms unto Assignee
as follows:

         (a)      A true, correct, and complete copy of the Lease is attached
                  hereto as Exhibit A. Except as shown in Exhibit A, there are
                  no amendments, supplements, or waivers with respect to the
                  rights of either party under the Lease.

         (b)      The Lease is valid and in full force and effect in accordance
                  with the terms and conditions thereof and there are no uncured
                  defaults under the Lease.

         (c)      The commencement date of the term of the Lease was April 1,
                  1985, and the termination date of the initial term of the
                  Lease is March 31, 1995, subject to the right of the tenant
                  under the Lease to five (5) renewal terms of five (5) years
                  each; and two (2) of such renewal options have been exercised
                  by Assignor and one (1) of such renewal options has been
                  exercised by Assignee as provided below, thereby extending the
                  term of the Lease from April 1, 2005, through March 31, 2010.

         (d)      Monthly rent due under the Lease is currently in the amount of
                  $7,804.16 and is subject to increase as of April 1, 2003 as
                  provided under the Lease. The periodic rent adjustments shall
                  continue through the extended renewal option periods pursuant
                  to the provisions of Article 2. Rent under the Lease.

         (e)      The Lease is hereby amended as provided in paragraph 8 below,
                  to add two (2) additional five (5) renewal options for the
                  periods April 1, 2010 through March 31, 2015, and April 1,
                  2015 through March 31, 2020, respectively.

         5. CONSENT AND RELEASE BY LANDLORD. In consideration of the payment of
$10,000 by Assignor to Landlord due as of the Assignment Date, Landlord hereby
consents to the terms of this agreement and the assignment of the Lease by
Assignor to Assignee (but this consent by Landlord shall not constitute a waiver
of the necessity for such consent by Landlord to any subsequent assignment of
subletting if required under the Lease), and acknowledges and agrees that (i)
Assignor shall be and hereby is released from any and all future liability
whatsoever to Landlord under the Lease from and after March 31, 2005, and (ii)
Assignee shall have the right to exercise any right to renew and extend the term
of the Lease or any other right as provided therein without requiring Assignor
to join in the exercise of such right.

                                                                               3
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         6. EXTENSION OF TERM. Assignee and Landlord acknowledge and agree that
Assignee has hereby properly exercised the right to renew and extend the term of
the Lease as provided therein for one (1) renewal term of five (5) years,
thereby extending the term of the Lease from April 1, 2005 through March 31,
2010. As provided in paragraph 5 above, Assignor shall have no liability to
Landlord for any such extended term of the Lease after March 31, 2005.

         7. CONSENT BY LANDLORD TO IMPROVEMENTS. Landlord hereby consents to the
change in any exterior and interior signage at the Leased Premises to identify
Assignee as the tenant of the Leased Premises under the Lease and to any
improvements, additions and alterations to the interior and/or exterior of the
Leased Premises that may be desired by Assignee, at Assignee's own expense, to
accommodate Assignee's use and occupancy of the Leased Premises. Assignee shall
permit no non-code work to be done of the Leased Premises, shall permit no liens
to attach to the Leased Premises, shall obtain all necessary permits, and shall
comply with all local, state, and federal regulations which are applicable to
such proposed work.

         8. ARTICLE 1. PREMISES AND TERMS. Lease Agreement dated April 1, 1985,
is hereby amended to increase the number of renewal options from three (3)
renewal options of five (5) years each to five (5) renewal options of five (5)
years each, the two (2) additional renewal options permit the extention of the
renewal periods from April 1, 2010 through March 31, 2015, and April 1, 2015
through March 31, 2020, respectively, and the 60 day notice requirement shall be
amended to read Lessee shall give written notice of its election to Lessor not
less than six (6) months prior to the expiration of the term hereof, or the
current renewal term, as the case may be.

         9. DEFAULT. In the even of a default by Assignee in any of the terms or
conditions of the Lease on, or before, March 31, 2005, Landlord, at its option,
may proceed directly against Assignor in accordance with Article 14. Default,
under the Lease.

         10. NOTICES. Any notice required or permitted to be given under the
Lease or this agreement shall be given and received according to the terms of
the Lease, and the addresses of the parties for such notices are currently as
follows:

         If to Landlord:                Stearns Investments
                                        c/o Mr. & Mrs. Jack J. Stearns, Jr.
                                        1546 Averill Park Drive
                                        San Pedro, California  90732

         If to Assignee:                Pinnacle Financial Partners, Inc.,
                                        formerly, TMP, Inc.
                                        Attention:  Mr. John Eakin
                                        3401 West End Avenue, Suite 306
                                        Nashville, Tennessee  37203

         If to Assignor:                Franklin National Bank
         (but not required              Attention:  Mr. George J. Regg, Jr.
         after March 31, 2005)          230 Public Square
                                        Franklin, Tennessee,  37064

                                                                               4
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         11. AGREEMENT AS AMENDMENT TO LEASE. The provisions set forth in this
agreement shall be deemed to be an amendment to the terms of the Lease and shall
be binding upon and shall inure to the benefit of the parties hereto and their
respective heirs, successors and assigns. It is the intent of the parties that
this amendment not alter or affect the viability or construction of the Lease
currently in force, which is understood to continue to be valid and in full
force and effect as hereby amended.

         IN WITNESS WHEREOF, the parties hereto have set their hands and seals
effective as of the date first above written.

                      ASSIGNOR:       FRANKLIN NATIONAL BANK

                                      --------------------------------------
                                              President

                      ASSIGNEE:       PINNACLE FINANCIAL PARTNERS, INC.
                                      formerly TMP, INC., AND
                                      PINNACLE NATIONAL BANK (IN FORMATION)

                                      --------------------------------------
                                              President

                      LANDLORD:       STEARNS INVESTMENTS

                                      --------------------------------------
                                         Jack J. Stearns, General Partner

                                       -------------------------------------
                                         Edna Stearns, General Partner

                                                                               5
<PAGE>

STATE OF TENNESSEE

COUNTY OF WILLIAMSON

         Before me, the undersigned, a Notary Public in and for the County and
State aforesaid, personally appeared J. MYERS JONES, III, with whom I am
personally acquainted (or proved to me on the basis of satisfactory evidence),
and who upon oath acknowledged himself to be President of FRANKLIN NATIONAL
BANK, the within named bargainor, a national banking association, and that he as
such President being authorized so to do, executed the foregoing instrument for
the purposes therein contained, by signing the name of the corporation by
himself as President.

         Witness my hand and seal, at office in Franklin, Tennessee, this the
____ day of August, 2000.

                                   -----------------------------------------
                                   Notary Public

                                   My Commission Expires:
                                                         -------------------

STATE OF TENNESSEE

COUNTY OF DAVIDSON

         Before me, the undersigned, a Notary Public in and for the County and
State aforesaid, personally appeared ROB MCCADE with whom I am personally
acquainted (or proved to me on the basis of satisfactory evidence), and who upon
oath acknowledged himself to be Chairman of PINNACLE FINANCIAL PARTNERS, INC.,
the within named bargainor, a Tennessee Corporation, and that he as such
Chairman being authorized so to do, executed the foregoing instrument for the
purposes therein contained, by signing the name of the corporation by himself as
Chairman.

         Witness my hand and seal, at office in Nashville, Tennessee, this the
____ day of August, 2000.

                                   -----------------------------------------
                                   Notary Public

                                   My Commission Expires:
                                                         -------------------

                                                                               6
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STATE OF CALIFORNIA

COUNTY OF
         -------------------------

         Before me, the undersigned, a Notary Public in and for the County and
State aforesaid, personally appeared JACK J. STEARNS, General Parnter, STEARNS
INVESTMENTS, the within named bargainor, with whom I am personally acquainted
(or proved to me on the basis of satisfactory evidence), and who acknowledged
that he executed the within instrument for the purposes therein contained.

         Witness my hand and seal, at office in ______________, ________________
this the ____ day of August, 2000.

                                   -----------------------------------------
                                   Notary Public

                                   My Commission Expires:
                                                         -------------------

STATE OF CALIFORNIA

COUNTY OF
         ------------------------

         Before me, the undersigned, a Notary Public in and for the County and
State aforesaid, personally appeared EDNA STEARNS, General Partner, STEARNS
INVESTMENTS, the within named bargainor, with whom I am personally acquainted
(or proved to me on the basis of satisfactory evidence), and who acknowledged
that she executed the within instrument for the purposes therein contained.

         Witness my hand and seal, at office in______________, _________________
this the ____ day of August, 2000.

                                   -----------------------------------------
                                   Notary Public

                                   My Commission Expires:
                                                         -------------------

                                                                               7
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                                                                       EXHIBIT B

FURNITURE/EQUIPMENT LIST

Desks - 8
Credenzas - 7
Executive Chairs - 4
Secretarial Chairs - 3
Lamps - 4
Framed Prints - 13
Love Seat - 1
Arm Chairs - 2
Side Chairs - 16
Small Coffee Pot Table - 1
Custom Check/Counter Table - 1
Diebold vault door
Lock box viewing table with 1 side chair
3 window teller counters
Drive-thru teller counter
5 teller stools
Storage counter behind tellers - sliding doors & drawers
Diebold audio system microphone - 2 (drive-thru)
CCTV Camera - 2
4 lane drive-thru with closed circuit camera - 2
Panasonic cassette deck
Sony receiver
Sanyo microwave

                                                                               8

<PAGE>

                                                                       Exhibit A

STATE OF TENNESSEE

                                                 ASSIGNMENT OF LEASE AND
                                                 CONSENT OF LANDLORD

COUNTY OF WILLIAMSON

                                                 Re:   7029 Church Street East
                                                       Brentwood, TN

     THIS ASSIGNMENT OF LEASE AND CONSENT OF LANDLORD is made and entered into
effective as of ____________________, 1994 by FIRST UNION NATIONAL BANK OF
TENNESSEE, successor by merger to Nashville City Bank and Trust Co., Inc.
(hereinafter called "Assignor"), FRANKLIN NATIONAL BANK (hereinafter called
"Assignee"), and JACK J. STEARNS and wife, EDNA STEARNS, of San Pedro,
California (hereinafter called "Landlord").

                                   WITNESSETH:

     In consideration of the mutual covenants and agreements set forth herein
and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, Assignor, Assignee and Landlord hereby agree as
follows:

     1.   ASSIGNMENT BY ASSIGNOR. In accordance with the Agreement for
Assignment of Lease dated July 21, 1994, between Assignor and Assignee, and in
consideration of that payment due from Assignee to Assignor as provided therein,
Assignor hereby assigns, transfers and conveys unto Assignee all of Assignor's
right, title and interest as tenant (i) in, to and under that certain Lease
Agreement entered into originally by Nashville City Bank and Trust Co., Inc. as
tenant (now First Union National Bank of Tennessee) and Jack J. Stearns and
wife, Edna Stearns, as landlord, dated April 1, 1985 (referred to as the
"Lease") relating to leased premises and improvements located at 7029 Church
Street East, Brentwood, Williamson County, Tennessee (referred to as the "Leased
Premises'), (ii) in and to any buildings, leasehold improvements, fixtures or
equipment on said property, including the items of personal property described
on Exhibit B attached hereto, and (iii) in and to any right to extend or renew
the term of the Lease; subject, however, to the following terms and conditions:

     (a)  The effective date of the assignment of the Lease (the "Assignment
          Date") shall be the earlier of (i) March 31, 1995, or (ii) the
          "Possession Date" as hereinafter defined. The "Possession Date" is
          defined as the earlier of (i) May 31, 1995, or (ii) the date the
          Leased Premises is vacated by Assignor and possession thereof is
          delivered by Assignor to Assignee. Assignor agrees to vacate the
          Leased Premises within three (3) days after opening for business at
          its new location in Brentwood, Tennessee and possession of the Leased
          Premises shall be delivered to Assignee as of said date. Until the
          Possession Date, Assignor shall have the right to remain in possession
          of the Leased Premises under the Lease;

<PAGE>

     (b)  Through and including the Possession Date, Assignor shall be liable
          for the payment of (i) the monthly rent due under the Lease and (ii)
          any and all other costs and expenses due under the Lease, including,
          without limitation, those relating to taxes, insurance, repairs,
          maintenance, and utilities, that may be payable under the Lease or
          that may be incurred with respect to the Leased Premises, prorated as
          appropriate;

     (c)  As of the Assignment Date, Assignee shall deliver to Assignor the
          payment due under the Agreement for Assignment of Lease dated July 21,
          1994, between Assignor and Assignee. Beginning the day after the
          Possession Date, Assignee shall be liable for the payment of (i) the
          monthly rent due under the Lease and (ii) any and all other costs and
          expenses due under the Lease, including, without limitation, those
          relating to taxes, insurance, repairs, maintenance, and utilities,
          that may be payable under the Lease or that may be incurred with
          respect to the Leased Premises, prorated as appropriate;

     (d)  Assignee shall not open for the conduct of business at the Leased
          Premises nor shall Assignee install any exterior signage at the Leased
          Premises for a period of twenty-one (21) days after the Possession
          Date; provided, however, Assignee shall be allowed to renovate the
          Leased Premises and the improvements located thereon during such
          twenty-one (21) days; and

     (e)  Assignor' s interest in the Leased Premises and in the items described
          on Exhibit B attached hereto, and in the leasehold improvements,
          fixtures or equipment on said property are being assigned to Assignee
          in their "AS IS/WHERE IS" condition, without warranty, express or
          implied, as to the condition or merchantability thereof or the fitness
          thereof for any particular use or purpose, and Assignor's interest in
          the Leased Premises is subject to any liens, easements, rights-of-way,
          restrictions or other matters affecting title to said property.

     2.   ACCEPTANCE BY ASSIGNEE. Assignee hereby accepts the assignment of the
Lease upon the terms and conditions hereof, agrees to assume and perform
directly any and all of the duties and obligations of Assignor as tenant under
the Lease, agrees to abide by the terms and conditions of the Lease, and agrees
to indemnify and hold harmless Assignor from and against any and all claims,
damages and liabilities arising from or relating to the Lease as to matters
occurring on or after the Possession Date.

     3.   Assignor hereby confirms unto Assignee as follows:

          (a)  Assignor is the sole tenant under the Lease and is the sole owner
               of the tenant's interest thereunder; and Assignor holds valid
               leasehold title to the Lease and the buildings, leasehold
               improvements, fixtures and equipment assigned hereby.

                                       2
<PAGE>

          (b)  Assignor has not previously assigned the Lease or any interest
               therein, for security or otherwise, or sublet the property
               subject to the Lease, .in whole or in part.

          (c)  Subject to Landlord's consent, Assignor has the full right and
               authority to assign the Lease and all of Assignor's rights
               contained therein and Assignor knows of no circumstance which
               would prevent this assignment of the Lease from being valid and
               binding upon Assignor in all respects.

          (d)  The Lease has not been modified, or amended in any manner except
               as shown on Exhibit A attached hereto, and the Lease is in full
               force and effect as of the date hereof.

          (e)  Assignor is not in default under the Lease, and no circumstances
               or conditions exist which, either now or by the passage of time,
               would constitute a default under the Lease or would entitle
               Landlord to terminate the Lease or abridge Assignor's rights
               thereunder.

          (f)  All rentals due and payable under the Lease as of the date hereof
               have been paid and will have been paid by Assignor as of the Date
               of Possession.

          (g)  Assignor agrees to indemnify and hold harmless Assignee from and
               against any and all claims, damages and liabilities arising from
               or relating to the Lease as to matters occurring prior to the
               Possession Date.

     4.   LANDLORD'S REPRESENTATIONS. Landlord hereby confirms unto Assignee as
follows:

          (a)  A true, correct, and complete copy of the Lease is attached
               hereto as Exhibit A. Except as shown in Exhibit A, there are no
               amendments, supplements, or waivers with respect to the rights of
               either party under the Lease.

          (b)  The Lease is valid and in full force and effect in accordance
               with the terms and conditions thereof and there are no uncured
               defaults under the Lease.

          (c)  The commencement date of the term of the Lease was April 1, 1985,
               and the termination date of the initial term of the Lease is
               March 31, 1995, subject to the right of the tenant under the
               Lease to three (3) renewal terms of five (5) years each; and two
               (2) of such renewal options have been exercised by Assignee as
               provided below, thereby extending the term of the Lease from
               April 1, 1995 through March 31, 2005.

          (d)  Monthly rent due under the Lease is currently in the amount of
               $6,700.00 and is subject to increase as of April 1, 1997, as
               provided under the Lease.

                                       3
<PAGE>

     5.   CONSENT AND RELEASE BY LANDLORD. In consideration of the payment of
$10,000.00 by Assignor to Landlord due as of the Assignment Date, Landlord
hereby consents to the terms of this agreement and the assignment of the Lease
by Assignor to Assignee (but this consent by Landlord shall not constitute a
waiver of the necessity for such consent by Landlord to any subsequent
assignment or subletting if required under the Lease), and acknowledges and
agrees that (i) Assignor shall be and hereby is released from any and all future
liability whatsoever to Landlord under the Lease from and after March 31, 1995,
and (ii) Assignee shall have the right to exercise any right to renew and extend
the term of the Lease or any other right as provided therein without requiring
Assignor to join in the exercise of such right.

     6.   EXTENSION OF TERM. Assignee and Landlord acknowledge and agree that
Assignee has hereby properly exercised the right to renew and extend the term of
the Lease as provided therein for two (2) renewal terms of five (5) years each,
thereby extending the term of the Lease from April 1, 1995 through March 31,
2005. As provided in paragraph 5 above, Assignor shall have no liability to
Landlord for any such extended term of the Lease.

     7.   CONSENT BY LANDLORD TO IMPROVEMENTS. Landlord hereby consents to the
change in any exterior and interior signage at the Leased Premises to identify
Assignee as the tenant of the Leased Premises under the Lease and to any
improvements, additions and alterations to the interior and/or exterior of the
Leased Premises that may be desired by Assignee, at Assignee's own expense, to
accommodate Assignee's use and occupancy of the Leased Premises. Assignee shall
permit no non-code work to be done on the Leased Premises, shall permit no liens
to attach to the Leased Premises, shall obtain all necessary permits, and shall
comply with all local, state, and federal regulations which are applicable to
such proposed work.

     8.   NOTICES. Any notice required or permitted to be given under the Lease
or this agreement shall be given and received according to the terms of the
Lease, and the addresses of the parties for such notices are currently as
follows:

     If to Landlord:                    Mr. & Mrs. Jack J. Stearns, Jr.
                                        1546 Averill Park Drive
                                        San Pedro, California  90732

     If to Assignee:                    Franklin National Bank
                                        Attention:  Mr. Gordon E. Inman
                                        230 Public Square
                                        Franklin, Tennessee  37064

     If to Assignor:                    First Union National Bank of
     (but not required                     Tennessee
     after the Possession               Attention: Mr. Charles H. Davis
     Date)                              Corporate Real Estate
                                        1420 Two First Union Center
                                        Charlotte, North Carolina  28288-0340

                                       4
<PAGE>

     9.   AGREEMENT AS AMENDMENT TO LEASE. The provisions set forth in this
agreement shall be deemed to be an amendment to the terms of the Lease and shall
be binding upon and shall inure to the benefit of the parties hereto and their
respective heirs, successors and assigns. It is the intent of the parties that
this amendment not alter or affect the viability or construction of the Lease
currently in force, which is understood to continue to be valid and in full
force and effect as hereby amended.

     IN WITNESS WHEREOF, the parties hereto have set their hands and seals
effective as of the date first above written.

               ASSIGNEE:           FRANKLIN NATIONAL BANK

                                   By: _________________________ (BANK SEAL)
                                       ____________________ President

               ASSIGNOR:           FIRST UNION NATIONAL BANK
                                   OF TENNESSEE

                                   By: _________________________ (BANK SEAL)
                                         Vice President

               LANDLORD:               ____________________________ (SEAL)
                                         Jack J. Stearns

                                       ____________________________ (SEAL)
                                         Edna Stearns

                                       5
<PAGE>

     STATE OF ________________

     COUNTY OF ______________

          Before me, the undersigned, a Notary Public in and for the County and
     State aforesaid, personally appeared ________________, with whom I am
     personally acquainted (or proved to me on the basis of satisfactory
     evidence), and who upon oath acknowledged himself to be ______ President of
     FIRST UNION NATIONAL BANK OF TENNESSEE, the within named bargainor, a
     national banking association, and that he as such ______ President being
     authorized so to do, executed the foregoing instrument for the purposes
     therein contained, by signing the name of the corporation by himself as
     ______ President.

          Witness my hand and seal, at office in __________________,
     ______________, this the _____ day of _______________, 1994.

               (SEAL)                   _______________________________________
                                        Notary Public

                                        My Commission Expires:_________________

     STATE OF ________________

     COUNTY OF _______________

          Before me, the undersigned, a Notary Public in and for the County and
     State aforesaid, personally appeared ________________, with whom I am
     personally acquainted (or proved to me on the basis of satisfactory
     evidence), and who upon oath acknowledged himself to be ______ President of
     FRANKLIN NATIONAL BANK, the within named bargainor, a national banking
     association, and that he as such ______ President being authorized so to
     do, executed the foregoing instrument for the purposes therein contained,
     by signing the name of the corporation by himself as ______ President.

          Witness my hand and seal, at office in __________________,
     ______________, this the _____ day of _______________, 1994.

               (SEAL)                   _______________________________________
                                        Notary Public

                                        My Commission Expires:_________________

                                       6
<PAGE>

     STATE OF ________________

     COUNTY OF _______________

          Before me, the undersigned, a Notary Public in and for the County and
     State aforesaid, personally appeared JACK J. STEARNS, the within named
     bargainor, with whom I am personally acquainted (or proved to me on the
     basis of satisfactory evidence), and who acknowledged that he executed the
     within instrument for the purposes therein contained.

          Witness my hand and seal, at office in __________________,
     ______________, this the _____ day of _______________, 1994.

               (SEAL)                   _______________________________________
                                        Notary Public

                                        My Commission Expires:_________________

     STATE OF ________________

     COUNTY OF ______________

          Before me, the undersigned, a Notary Public in and for the County and
     State aforesaid, personally appeared EDNA STEARNS, the within named
     bargainor, with whom I am personally acquainted (or proved to me on the
     basis of satisfactory evidence), and who acknowledged that he executed the
     within instrument for the purposes therein contained.

          Witness my hand and seal, at office in __________________,
     ______________, this the _____ day of _______________, 1994.

               (SEAL)                        ___________________________________
                                             Notary Public

                                             My Commission Expires:_____________

                                       7
<PAGE>

                              ASSUMPTION AGREEMENT
                                       AND
                       FIRST AMENDMENT TO LEASE AGREEMENT

     THIS AGREEMENT ("Agreement") made and entered into effective as of this
____ day of _______, 1993, by and between JACK J. STEARNS and EDNA STEARNS, of
San Pedro, California ("Stearns"), and FIRST NION NATIONAL BANK, a national
banking association, as successor-in-interest to Dominion Bank of Middle
Tennessee and Nashville City Bank and Trust Co. ("Firs Union").

                                   WITNESSETH:

     WHEREAS, by Lease Agreement made as of the 1st day of April, 1985 (the
"Lease"), NASHVILLE CITY BANK AND TRUST CO., INC., a banking institution
organized under the laws of the State of Tennessee ("Nashville"), leased from
Stearns that certain tract of land, together with the improvements thereon,
located at 7029 Church Street, East, Brentwood, Williamson County, Tennessee
(the "Premises")' and

     WHEREAS, Nashville merged with and into DOMINION BANK OF MIDDLE TENNESSEE,
a banking institution organized under the Laws of the State of Tennessee
("Dominion"), whereby Dominion was the surviving corporation; and

     WHEREAS, Dominion as successor-in-interest to Nashville assumed all
obligations and rights under the Lease; and

     WHEREAS, Dominion has merged with and into First Union, whereby First Union
is the surviving corporation; and

     WHEREAS, First Union as successor-in-interest to Dominion has assumed all
obligations and rights under the Lease; and

     WHEREAS, Stearns has agreed to permit First Union to change the signage and
to install a satellite dish upon the Premises; and

     WHEREAS, the parties desire to confirm the current rental and other certain
provisions of the Lease; and

     WHEREAS, the parties desire to amend the Lease to provide for a notice
provision as to each party;

     NOW THEREFORE, in consideration of the Premises and the mutual covenants
contained herein, the parties do hereby agree as follows:

<PAGE>

     1.   First Union, as successor-in-interest to Dominion, hereby assumes the
Lease and further agrees to comply with all of the terms and conditions thereof
as "Lessee."

     2.   Stearns hereby acknowledges that First Union may replace the existing
signage at the Premises and consents to installation of signage to properly
identify the Premises as a First Union banking facility, subject to all terms of
the Lease.

     3.   Stearns consents to the installation of a satellite antenna on the
Premises by First Union, with such installation to be at the sole cost, expense
and risk of First Union, as provided in the Lease. First Union shall, subsequent
to installation of the satellite antenna, provide a copy of the plans for such
antenna to Stearns. Such satellite antenna shall remain the property of First
Union. First Union shall remove the satellite antenna at the end of the Lease
term, or any renewals thereof. Upon such removal, First Union shall restore the
area of the Premises where the satellite antenna is located to its original
condition and repair any damage to the Premises caused by removal of the
satellite antenna, as provided in the Lease.

     4.   The parties hereby confirm the following in regard to the Lease:

          (a)  The expiration date of the current Lease term is March 31, 1995;

          (b)  First Union has three (3) five-year renewal options; and

          (c)  The current monthly rental amount under the Lease is Six Thousand
     One Hundred Dollars and 00/100 ($6,100.00).

     5.   The parties hereby amend the Lease to provide for a notice provision
by adding a new Paragraph 20, as follows:

          "20. NOTICES. Any notice which Lessor may desire or be required to
     give to Lessee shall be deemed sufficiently given or rendered if in
     writing, delivered to Lessee by express delivery service with receipt or by
     certified or registered United States mail, return receipt requested,
     addressed to Lessee at:

          First Union National Bank of South Carolina
          Corporate Real Estate Division
          1420 Two First Union Center
          Charlotte, North Carolina  28288-0340
          ATTENTION:  Pat Bryant;

     and any notice which Lessee may desire or be required to give to Lessor
     shall be deemed sufficiently given or rendered if in writing, delivered to
     Lessor by certified or registered mail, return receipt requested, addressed
     to Lessor at:

                                       2
<PAGE>

          Jack J. and Edna Stearns
          1546 Averill Park Drive
          San Pedro, California  90732;

     or at such other places as Lessee or Lessor may from time to time designate
     in writing. any notice given hereunder via the United States postal system
     shall be deemed given the day after deposit in the mails as set forth
     above."

     6.   Except as herein modified and amended, all terms and conditions of the
Lease are hereby confirmed by the parties and shall remain in full force and
effect. The execution of this Agreement shall in no event be deemed to
constitute a waiver of any right or claim of either Lessee or Lessor under or by
virtue of the Lease.

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed effective as of the date first above written.

                                    "STEARNS"
                                    ____________________________________________
                                    Jack J. Stearns
                                    ____________________________________________
                                    Edna Stearns
                                    ____________________________________________
                                    "FIRST UNION"

ATTEST:  [SEAL]                     FIRST UNION NATIONAL BANK

_________________________________   By:_________________________________________

____________________ Secretary      Name:_______________________________________

                                    Title:_____________________________President

                                       3
<PAGE>

STATE OF CALIFORNIA                 )
                                    ):
COUNTY OF LOS ANGELES               )

     This instrument was acknowledged before me on this ____ day of
_____________, 1993, by Jack J. Stearns and Edna Stearns.

                                             ___________________________________
                                             Notary Public

My Commission Expires:

___________________________
         [SEAL]

STATE OF ___________________        )
                                    ):
COUNTY OF _________________         )

     This instrument was acknowledged before me on this ____ day of
_____________, 1993, by ____________________, as _____________ President of
First Union National Bank, a national banking association..

                                             ___________________________________
                                             Notary Public

My Commission Expires:

___________________________
         [SEAL]

                                       4
<PAGE>

                                 LEASE AGREEMENT

     This Lease Agreement made and entered into as of the 1st day of April,
1985, by and between Jack J. Stearns and wife, Edna Stearns, residents of San
Pedro, California (the "Lessor"), and Nashville City Bank and Trust Co., Inc., a
banking institution organized under the laws of the State of Tennessee and
having its principal place of business in Nashville, Tennessee (the "Lessee").

                              W I T N E S S E T H:

     1.   PREMISES AND TERMS. Lessor, in consideration of the rentals
hereinafter agreed to be paid and of the covenants, conditions and agreements to
be kept and performed by Lessee, hereby leases and demises to Lessee, and Lessee
hereby leases and hires from Lessor that certain tract of land, together with
the improvements thereon, located at 7029 Church Street, East, Brentwood,
Williamson County, Tennessee (the "Premises"). Said tract of land is more
particularly described in Exhibit A attached hereto and incorporated herein by
this reference.

     TO HAVE AND TO HOLD the Premises for a term of ten (10) years, beginning
April 1, 1985, and ending March 31, 1995, with three (3) renewal options of five
(5) years each, as hereinafter set forth. In the event Lessee desires to
exercise a renewal option, Lessee shall give written notice of its election to
Lessor not less than sixty (60) days prior to the expiration of the term hereof,
or of the then current renewal term, as the case may be.

     2.   RENT. Lessee covenants and agrees to pay to Lessor during the first
three (3) years of the term of this Lease rental at the rate of Sixty Thousand
Dollars ($60,000.00) per annum (the "Annual Rent") in equal monthly
installments, payable in advance, of Five Thousand Dollars ($5,000.00), the
first installment of which shall be due and payable upon execution of this
Agreement, subject to proration as hereinafter provided. Each installment
thereafter shall be due and payable on the first day of each and every month
during the term of this Lease, and any renewal term thereof, subject to the cost
of living adjustment hereinafter described. Each of said installments of rent
shall be paid to Lessor at 1546 Averill Park Drive, San Pedro, California

<PAGE>

90732, or at such other place as Lessor may hereafter specify in writing to
Lessee. Any payment of commissions owing by reason of this Lease Agreement shall
be the sole responsibility of Lessor.

     The Annual Rent shall be subject to adjustment at the commencement of the
fourth (4th) year of the term of this Lease, and at the commencement of every
fourth (4th) year thereafter during the term of this Lease and all renewal terms
thereof, to give effect to increases, if any, in the cost of living (the
"Adjusted Annual Rent"). For this purpose, the Adjusted Annual Rent for every
fourth (4th) year shall be computed by multiplying the Annual Rent provided for
above by a fraction, the numerator of which shall be the Consumer Price Index
for All Urban Consumers published by the United States Department of Labor
Bureau of Labor Statistics (the "CPI-U") averaged for the twelve (12) month
period immediately preceding the commencement of the fourth (4th) year in
question, and the denominator of which shall be the average CPI-U for the year
1985 in which the term of this Lease commences. The Adjusted Annual Rent, upon
being so determined, shall be applicable for a period of three (3) years,
beginning with the date on which an adjustment in the Annual Rent is made
pursuant to this paragraph. Under no circumstances, however, shall the Adjusted
Annual Rent be less than the Annual Rent set forth in this section.

     By way of illustration, if the average CPI-U for the year 1985 is 150, and
if the average CPI-U for the twelve (12) month period next preceding the
commencement of the fourth (4th) year of the term of this Lease is 175, then,
and in that event, the Adjusted Annual Rent for the fourth (4th) through the
sixth (6th) years of the term of this Lease shall be determined by multiplying
the Annual Rent provided for above by the fraction 175/150. If the average CPI-U
for the twelve (12) month period next preceding the commencement of the seventh
(7th) year of the term of this Lease has risen to 200, then the Adjusted Annual
Rent for the seventh (7th) through the ninth (9th) years of the term of this
Lease shall be determined by multiplying the Annual Rent provided for above by
the fraction 200/150.

                                       2
<PAGE>

     The CPI-U used to form such fractions shall in all cases be adjusted where
necessary to the base period 1967, which equals 100. In the event the CPI-U
shall no longer be published, or its contents changed so that it is no longer
recognized as an accurate measure of the cost of living, then Lessor shall
designate another index, generally recognized as being authoritative and subject
to the reasonable approval of Lessee, which index shall be substituted for
purposes of the foregoing calculation.

     Lessor shall give notice in writing to Lessee on or before the commencement
of each lease year of any adjustment in the Annual Rent to be made on account of
the provisions of this section. For purposes of this section, the term "lease
year" shall mean the twelve month period commencing on April 1, and on each
anniversary thereafter.

     3.   OCCUPANCY. Lessee may take possession of the Premises immediately upon
execution of this Lease and the payment of the first month's rent to Lessor,
which rent shall be prorated as of the date of execution of this Agreement.

     4.   USE OF PREMISES. The Premises shall be used by Lessee as a bank
operation facility and for all other purposes reasonably related thereto, and/or
for any other lawful purpose.

     5.   ALTERATIONS AND IMPROVEMENTS. Lessee, at its own expense, may make
such alterations and improvements to the Premises as needed for its use; but all
additions to the Premises, including but not limited to any new buildings
constructed thereon, except as provided below, shall remain the property of
Lessor at the end of the Lease term, or any renewals thereof. It is expressly
understood by the parties that Lessee shall have the right to demolish the
existing improvements on the Premises and construct a new building or buildings
thereon.

     Any equipment, including, but not limited to, equipment customarily
provided by Lessee and used in the operation of a bank facility, such as any
automatic teller machines, accounting and bookkeeping equipment; fixtures; and
furnishings, including movable office furniture, free standing bookshelves, and
modular vaults installed or placed on the Premises by Lessee, being personal
property, shall remain the property of Lessee and may be removed by

                                       3
<PAGE>

Lessee; provided, however, that any damage to the Premises due to such removal
shall be repaired by Lessee at its expense.

     6.   UTILITIES. All utility meters shall be registered in the name of
Lessee, and the cost of all utilities shall be the responsibility of Lessee.

     7.   TAXES. Lessee shall pay all real property taxes and special
assessments which may be levied against the Premises subsequent to April 1,
1985, including all licenses and permits required by Lessee to do business. All
taxes and assessments for years prior to 1985 shall be paid by Lessor, and
current taxes for the year 1985 shall be prorated between the parties as of
April 1, 1985.

     8.   INSURANCE. Lessee shall carry and maintain, at its expense, all fire
and extended insurance coverage in an amount equal to not less than one hundred
percent (100%) of the insurable value of the Premises, which insurance proceeds
shall be payable to Lessor and Lessee, as their respective interests may appear.
Lessee shall also carry public liability and property damage insurance coverage
to the limits of One Million Dollars ($1,000,000.00) per person and per
accident, which policy shall include a loss-payable clause to protect Lessor.

     9.   MAINTENANCE. Lessee shall be responsible for the costs of all
maintenance, repairs and upkeep, including expenses relating to plate glass
windows and doors, which may be incurred on the Premises. Lessee also agrees
that all improvements upon the Premises shall be kept in good order and repaired
by Lessee at its expense, subject only to ordinary wear and tear.

     10.  CONDEMNATION. The City of Brentwood plans to widen Church Street, East
in front of the Premises, and approximately ten (10) feet will be taken for that
purpose from the 120 foot frontage of the Premises. It is therefore agreed by
both Lessor and Lessee that each will accept an amendment or revision to the
legal description of the property (Exhibit A) in order to reflect such taking,
but that such taking shall not otherwise alter the terms of this Lease.

     In the event that any additional portion of the Premises is taken in the
future by reason of condemnation proceedings, or conveyed under threat of
condemnation, which taking or conveyance (including existing parking and
pedestrian areas) would substantially interfere

                                       4
<PAGE>

with Lessee's business, this Lease shall be subject to termination at the option
of either Lessor or Lessee.

     11.  OPTION TO BUY. If Lessor shall decide to sell the Premises at any time
during the term of this Lease or any renewal term thereof, or at any time within
six (6) months following the expiration of any such term, Lessee shall have an
option of first refusal to purchase the Premises from Lessor for the same price,
and upon the same terms and conditions, as those stated in any bonifide offer to
purchase received by Lessor. Lessor shall notify Lessee in writing of Lessor's
receipt of any offer to purchase, stating the price, terms and conditions of
such offer and, if the offer is in writing, a copy of such offer; and Lessee
shall have the aforesaid option of first refusal for a period of thirty (30)
days following Lessee's receipt of said written notice from Lessor. Such right
of first refusal shall be applicable to any and all offers received by Lessor,
notwithstanding an earlier election by Lessee not to purchase pursuant to any
such offer.

     12.  SUBLEASE AND ASSIGN. Lessee shall not sublease or assign the Premises
or any portion thereof without the prior approval of Lessor. In the event that
the rent paid to Lessee by any sublessee or assignee exceeds the then applicable
Annual Rent or Adjusted Annual Rent, as the case may be, the amount of such
excess shall be divided equally between Lessor and Lessee.

     13.  CANCELLATION. In the event the Premises are damaged or destroyed by
fire, storm or other casualty beyond the control of the parties, so that the
Premises are not tenantable in whole or in part, and are not restored to their
condition prior to such casualty by Lessor within ninety (90) days after such
damage, or Lessor has not begun diligently to restore the Premises within said
ninety (90) day period, with Lessee to offer its share of any insurance proceeds
to Lessor to be applied toward the cost of such restoration, then, in any such
event, the rental payments shall be prorated as to the portion of the Premises
which is tenantable; otherwise, this Lease may be terminated by Lessee upon
sixty (60) days written notice to Lessor.

     14.  DEFAULT. In the event of a default of Lessee in any of the terms or
conditions of this Agreement, which default continues for a period of thirty
(30) days after written notice by Lessor to Lessee, and in the event Lessee has
not diligently commenced to cure any such default

                                       5
<PAGE>

(excepting a default in the nature of a monetary payment) within said thirty
(30) day period, then Lessor may re-enter the Premises and undertake on behalf
of Lessee to re-rent the Premises, but Lessee shall remain liable for any
deficiency under this Agreement.

     For purposes of this section, a "default" shall include the bankruptcy of
Lessee, a receivership proceeding filed against Lessee, or an assignment made by
Lessee for the benefit of its creditors.

     In the event of a default by either Lessor or Lessee in any of the terms
and conditions of this Agreement, the defaulting party shall reimburse the
non-defaulting party for any expenses and costs incurred by it, including
reasonable attorneys' fees, in enforcing its rights and privileges as set out
herein.

     Notwithstanding any other provision contained in this Lease, in the event
Lessee is closed or taken over by the banking authority of the State of
Tennessee, or any other banking supervisory authority, Lessor may terminate the
Lease only with the concurrence of such banking authority or other banking
supervisory authority, and any such authority shall in any event have the
election either to continue or to terminate the Lease. However, in the event
this Lease is terminated, the maximum claim of Lessor for damages or indemnity
for injury resulting from the rejection or abandonment of the unexpired term of
the Lease, or any renewals thereof, shall in no event be in an amount exceeding
the rent reserved by the Lease, without acceleration,. for the year next
succeeding the date of the surrender of the Premises to Lessor, or the date of
re-entry of Lessor or Agent, whichever first occurs, whether before or after the
closing of Lessee, plus an amount equal to the unpaid rent accrued, without
acceleration, up to such date.

     15.  GOOD TITLE AND QUIET ENJOYMENT. Lessor covenants with Lessee that
Lessor has good title to the Premises, and has the right and power to enter into
this Lease and to keep and perform the covenants contained herein. Lessor
warrants peaceable and quiet possession to Lessee during the term of this Lease.

                                       6
<PAGE>

     16.  CONTINGENCIES. This Agreement, and the obligations of the parties
hereunder, are expressly contingent upon:

          (a)  Lessee's receipt of written approval to operate a branch bank on
     the Premises from both the Federal Deposit Insurance Corporation (the
     "FDIC") and the Commissioner of the Department of Financial Institutions of
     the State of Tennessee (the "Commissioner"), and

          (b)  Lessee's obtaining a leasehold title insurance policy on the
     Premises subject only to real property taxes for the current year and such
     other exceptions as may be acceptable to Lessee, which acceptance shall be
     based on reasonable standards, and which policy shall be ordered by Lessee,
     at its expense, upon the execution of this Agreement by both parties.

     In the event Lessee fails to obtain the written approval of either the FDIC
or the Commissioner within sixty (60) days of the date of this Agreement, or in
the event there are exceptions to the title insurance policy unacceptable to
Lessee, and such exceptions cannot be removed by Lessor within thirty (30) days
of the date of this Agreement, then, in either such event, either party shall
have the right to cancel this Lease, the first month's rent paid to Lessor shall
be refunded to Lessee, and neither party shall have any further rights or
obligations under this Agreement.

     17.  RECORDATION. This Agreement shall be recorded in the Register's Office
for Williamson County, Tennessee.

     18.  BINDING ON SUCCESSORS. The terms, covenants, and conditions of this
Lease shall be binding upon the parties hereto, and their respective heirs,
successors and assigns.

     19.  CONTROLLING LAW. This Agreement shall be controlled by and interpreted
according to the laws of the state of Tennessee.

                                       7
<PAGE>

     IN WITNESS WHEREOF, the parties have caused this instrument to be executed
on the ______ day of _________, 1985.

                                        LESSOR:

                                        ________________________________________
                                        JACK J. STEARNS

                                        ________________________________________
                                        EDNA STEARNS

                                        LESSEE:

                                        NASHVILLE CITYBANK

                                        BY:_____________________________________
                                        TITLE:__________________________________

STATE OF ___________________

COUNTY OF _________________

          Personally appeared before me, ______________________ a Notary Public
in and for said County and State, the within named Jack J. Stearns, the
bargainor, with whom I am personally acquainted (or proved to me on the basis of
satisfactory evidence) and who acknowledged that he executed this within
instrument for the purposes therein contained.

          WITNESS may hand and official seal at ________________, ___________,
this _____ day of ________, 1985.

                                        ________________________________________
                                        Notary Public

                                        My Commission Expires:__________________

                                       8
<PAGE>

STATE OF ___________________

COUNTY OF _________________

          Personally appeared before me, ______________________ a Notary Public
in and for said County and State, the within named Jack J. Stearns, the
bargainor, with whom I am personally acquainted (or proved to me on the basis of
satisfactory evidence) and who acknowledged that he executed this within
instrument for the purposes therein contained.

          WITNESS may hand and official seal at ________________, ___________,
this _____ day of ________, 1985.

                                        ________________________________________
                                        Notary Public

                                        My Commission Expires:__________________

                                       9
<PAGE>

STATE OF Tennessee

COUNTY OF DAVIDSON

     Before me, MARTHA MORRIS a Notary Public of the State and County aforesaid,
personally appeared BRUCE E. HAMMOND, with whom I am personally acquainted (or
proved to me on the basis of satisfactory evidence), and who, upon oath,
acknowledged HIMSELF to be First V.P. of Nashville City Bank and Trust Co., the
within named bargainer, a Tennessee banking corporation, and that HE as such
FIRST V.P., executed the foregoing instrument for the purposes therein
contained, by signing the name of the banking corporation by himself as FIRST
V.P.

     WITNESS my hand and seal, at office in NASHVILLE, TENNESSEE, this 4TH day
of APRIL, 1985.

                                        ________________________________________
                                        Notary Public

                                        My Commission Expires:__________________

                                       10
<PAGE>

                                    EXHIBIT A

     Land in Williamson County, Tennessee, being tract "B" on the plan of
Brentwood Mall Shopping Center, Section One, Revised as of record in Book 4,
page 34, Register's Office, Williamson County, Tennessee.

     Beginning at the Intersection of the southernly margin of Church Street and
the westernly margin of the L & N Railroad: Thence south .-5DEG. and 27'-20"
east, a distance of 311.58' +/-; thence north 89DEG. -53' west, a distance of
120.52' +/-; thence north 5DEG. -27' -20" west, a distance of 293.78', to the
southernly margin of Church Street; thence with the southernly margin of Church
Street, north 81DEG. -38' east, a distance of 120.00' to the point of beginning;
and containing 0.83 of an acre.

                                       11<PAGE>
                                                                  EXHIBIT 10.6a

                           SANMINA CORPORATION
                              AGREEMENT FOR
                     ELECTRONIC MANUFACTURING SERVICES

     This Agreement between ELASTIC NETWORKS, INC., a Delaware corporation,
(hereinafter referred to as "CUSTOMER"), and SANMINA CORPORATION, a corporation
(hereinafter referred to as "SANMINA") is entered into on February 19, 1999.
Sanmina shall perform manufacturing services for Customer under the terms and
conditions set forth herein.

I.   TERM

     Unless earlier terminated pursuant to Section XX hereof, this Agreement
shall be in effect for twelve (12) months from the date of this Agreement
(the "INITIAL TERM"). The parties may agree to extend the Initial Term of the
Agreement, for one (1) additional year, at any time prior to the termination
of such Initial Term. The Initial Term and any extension thereof are
collectively hereinafter referred to as the "TERM."

II.  SCOPE OF WORK PERFORMED

     Sanmina shall manufacture and Test (as defined below) the products
identified in EXHIBIT A under the caption "Products to be Manufactured and
Cost to Customer" (the "PRODUCTS") according to the specifications delivered
to Sanmina and amended from time to time by Customer (the "SPECIFICATIONS").
The documents which comprise the Specifications are listed on EXHIBIT A under
the caption "Description of Specifications." As used herein, "TEST" shall mean
the manufacturing test process that Sanmina shall design and perform on the
Products to ensure the Products conform to Customer's test specifications, as
referred to and listed on EXHIBIT A. Sanmina shall work together with
Customer to design the Test, and Customer shall have the right to approve the
Test prior to first use. In addition, Sanmina shall provide, without charge,
manufacturing engineering services, component engineering services, and an
engineering resource, at mutually agreeable times, at Customer's business
premises. Sanmina shall have the right to limit Customer's use of these
services to a level which is commensurate with the manufacturing activity
levels generated by Customer.

     As more fully described in Section III, below, Customer shall be
responsible, under certain circumstances, for the cost of materials,
components, and parts that Sanmina procures or otherwise contracts for (such
items are hereinafter collectively referred to as "PARTS") In order to
manufacture the Products.

     Sanmina shall purchase Parts for the Products in accordance with a
vendor list approved by Sanmina and Customer ("AVL"). In the event Sanmina
cannot purchase a Part from a vendor on the AVL for any reason, including
unavailability or commercial unfeasibility of the purchase of such Parts,
Sanmina may purchase such Parts from an alternate vendor with the prior
written consent of Customer.

III. GENERAL PLANNING AND PROCUREMENT PROCESS--CUSTOMER RESPONSIBILITIES

     A.     On the second business day of every calendar week during the Term
     or at other intervals as may be mutually agreed to, Customer shall
     provide Sanmina with a rolling forecast of Product requirements for a
     period of 52 weeks ("FORECAST"). The Forecast will show requirements on a
     weekly basis for the first 16 weeks of the forecast period. The
     following months will show requirements on a monthly basis and the last
     2 quarters will show requirements on a quarterly basis. The Forecast
     shall be used to generate Sanmina MPS based on the planning horizon
     outlined in Exhibit "D." Unless otherwise agreed to by Sanmina and
     Customer, requirements for

                                     -1-

<PAGE>

     the initial four-week period will be kept "as is" from the prior Forecast
     as "frozen weeks" not subject to change. Customer may unilaterally revise
     previously forecast product requirements by 25% for the second four-week
     period, 50% for the third four-week period and by any amount for the
     remainder of the forecast period in a subsequent Forecast. Customer
     requests for changes beyond those allowed for the second and third
     four-week periods are subject to Sanimina approval, which shall not be
     unreasonable withheld.

     B.     Sanmina will have discretion to manage manufacturing,
     procurement, and inventory levels of Products, Parts, and
     work-in-progress, subject to the Inventory Commitment and the approval
     of Customer, which approval shall not be unreasonably withheld. As used
     herein, "INVENTORY COMMITMENT" means that, in accordance with the
     Forecast, Sanmina will maintain inventory levels of two (2) weeks of
     finished product, two (2) weeks of work-in-progress (WIP) and four (4)
     weeks of raw material; provided that Procurement of Raw Material, units
     in WIP and provisioning of Finished Products are to be processed by
     Sanmina on a weekly basis in accordance with quantities specified in the
     Forecast unless otherwise agreed to by Customer. Any Parts having a
     lead-time in excess of eight (8) weeks will be identified to Customer
     and purchased separately by Sanmina only with the written approval of
     Customer.

     C.     From time to time Customer may provide to Sanmina a bill of
     material with the information necessary to allow Sanmina to provide
     Customer with a quotation for prototypes, to include the number of units
     needed as a prototype, test procedures, engineering change orders,
     estimated production quantities, and an estimated production forecast,
     if applicable. Upon receipt of such a bill of material for prototypes,
     Sanmina shall provide a quotation to Customer within five (5) business
     days, and Customer shall have five (5) business days thereafter to
     respond to such quotation.

     D.     From time to time Customer may provide to Sanmina a bill of
     material with the information necessary to allow Sanmina to provide
     Customer with a quotation for volume manufacturing, to include the
     number of units needed as a prototype, test procedures, engineering
     change orders, estimated production quantities, and an estimated
     production forecast, if applicable. Upon receipt of such a bill of
     material for prototypes, Sanmina shall provide a quotation to Customer
     within five (5) business days, and Customer shall have five (5) business
     days thereafter to respond to such quotation.

IV.  GENERAL PLANNING AND PROCUREMENT PROCESS--SANMINA RESPONSIBILITIES

     A.     Sanmina will utilize the Forecast to generate a Master Production
     Schedule ("MPS") covering a 52 week period. Sanmina will base its
     procurement, internal capacity projections and commitments based upon
     the MPS.

     B.     Sanmina will process the MPS through industry-standard MRP
     software that will convert the MPS reflecting Customer's Forecasts into
     requirements for Parts that are required to make the Products. Sanmina
     will off-set the requirements for receipt of Parts by allowing for the
     time required to build the Products per the following times:

          1.     In-Circuit Test/Functional Test--5 Working Days
          2.     Assembly--7 Working Days
          3.     Kitting--2 Working Days
          4.     Material Handling--2 Working Days

                                     -2-

<PAGE>

     Sanmina will plan and schedule Parts to be at Sanmina's plant (a) eleven
     (11) Working Days before the Products are due to ship to Customer where
     no Test is required, and (b) sixteen (16) Working Days before the
     Products are due to ship to Customer where Test is required. Sanmina
     agrees to comply with the manufacturing process outlined by Customer as
     the same is described in the Specifications, as it may be amended from
     time to time. Sanmina will work with Customer to improve the
     manufacturing process to achieve greater quality and cost savings.

     C.     Sanmina will release (launch) orders to suppliers of Parts based
     on the MPS using the eleven (11) and sixteen (16) Working Day periods
     described above and appropriate vendor lead time as determined by
     Sanmina from time to time.

     D.     Sanmina, through its MRP System will also issue an instruction
     ("MRP SIGNAL") to its procurement group to buy a part approximately
     seven (7) days before a Product is due to be assembled.

V.   COST REDUCTION

     A.     PARTS COST REDUCTIONS. Reductions in the procurement price of
     Parts initiated by Elastic shall be reflected in a lower Product price
     using the following process: Elastic will calculate new Product price(s)
     based upon the lower Parts price and present the revised Product prices
     to Sanmina for approval and acceptance, which shall not be unreasonably
     withheld. Elastic shall then generate a Cost Change Order (CCO) which
     identifies the changes in cost and the effective date of the change.
     Elastic shall further issue Purchase Orders and/or Purchase Order
     Revisions as necessary to account for Products to be manufactured using
     the inventory of Parts purchased before the effective date of the CCO
     and Products to be manufactured using Parts and pricing established in
     the CCO.

     B.     MANUFACTURING COST REDUCTIONS (MCR). MCR initiated by Sanmina
     shall be retained by Sanmina. MCR initiated by Elastic shall be
     reflected in a lower Product price using the CCO process established
     above for processing Parts Cost Reductions.

     C.     Sanmina shall submit to Customer a monthly non-recurring
     engineering report (an "NRE REPORT"), which may contain among other
     things various proposed overtime charges, equipment rental or purchases,
     additional tools or machine tooling to be used in the manufacturing
     process, or cancellation, modification, or other fees proposed to be
     incurred by Sanmina. Upon Customer's receipt of an NRE Report, Customer
     may (i) send to Sanmina a purchase order authorizing some or all of the
     charges outlined therein or (ii) or may approve some or all of such
     proposed additional charges by electronic mail or other acceptable
     written communication, PROVIDED HOWEVER, that for all NRE Reports
     submitted to Customer Sanmina must receive written approval by an
     authorized representative of Customer before it may actually incur
     charges for the approved NRE Report items listed in such NRE Report.

     D.     With respect to any tools or tooling authorized in any NRE
     Report, the actual cost of such tools shall be deemed a part of
     Customer's Total Liability (as defined in Section XX hereof). All such
     tools and tooling purchased by Sanmina pursuant to this Agreement shall
     remain Customer's property, and Sanmina shall return such tools and
     tooling (normal wear and tear expected) to Customer upon request.
     Sanmina shall identify all such tooling with conspicuous labels or tags
     which identify such tools and tooling as the property of Customer, and
     shall keep all such tools and tooling free and clear of any and all
     liens and encumbrances created by Sanmina or the creditors of Sanmina.
     Sanmina shall use the same care with the storage and use of such tools
     and tooling as it uses for comparable property owned by Sanmina.

                                     -3-

<PAGE>

VI.  LIABILITIES FOR PARTS

     A.     The Parts Sanmina purchases or orders to fulfill its MPS on
     behalf of Customer to manufacture the Products shall constitute a
     portion of Customer's Total Liability (as defined in Section XX, below)
     to Sanmina, PROVIDED that, Customer shall have no liability for Parts in
     excess of the Inventory Commitment limit on Parts provided for in
     Section IX (B), below, unless Customer had agreed to Sanmina's acquiring
     Parts in excess of that permitted in Inventory Commitment. Customer
     shall not incur any obligations to pay any amounts constituting
     Customer's Total Liability unless and until this Agreement is terminated
     for any reason under Section XX, below.

     B.     Customer's liability for Parts that Sanmina has procured is
     further limited to any Parts that:

          1.     (i) have been ordered per the guidelines above that cannot be
                 cancelled; or

                 (ii) ordered per the guidelines above which cannot be
                 returned, but only to the extent that (a) the cost of such
                 Parts exceeds $1,000, and (b) Sanmina has made commercially
                 reasonable and sustained efforts to return the Parts (for at
                 least four (4) weeks); and

          2.     (i) cannot be used by Sanmina for any other purpose other
                 than the manufacture of Products for Customer under this
                 Agreement.

     C.     If Sanmina is able to return Parts, subject to a re-stocking or
     other fee, such fees shall become part of Customer's Total Liability,
     PROVIDED HOWEVER, that Customer's Total Liability attributable to any
     such re-stocking and other fees shall not exceed ten percent (10%) of
     the actual cost of such returned Parts.

     D.     The portion of Customer's Total Liability attributable to Parts
     will be at the quoted cost agreed between Sanmina and Customer. Any
     requirement for Parts having a lead-time in excess of eight (8) weeks
     will be identified to Customer in advance and purchased separately by
     Sanmina only with the written approval of Customer.

VII. ENGINEERING CHANGES

     In the event Customer submits a 'proposed engineering change order'
("PECO") with respect to any Product, Sanmina shall notify Customer of any
impact on the cost and/or scheduled delivery of such Products within three
(3) Working Days of the receipt of Customer's request. Customer may after
sometime submit to Sanmina a formal 'engineering change order' ("ECO") with
respect to the PECO that may or may not contain the exact same information as
the original PECO. Sanmina shall notify Customer again of any impact on the
cost and/or schedule delivery of such Products and any affected Products and
Parts that would be rendered obsolete as a result of the ECO within ten (10)
working days of receipt of the ECO. This ECO will act as the official
document for the change to be effective as of the date written or otherwise
specified in the ECO and may only be cancelled by another ECO. If any payment
is required to execute any ECO, Customer will provide Sanmina with a Purchase
Order. If issuance of an ECO results in a change in Product price, Customer
shall issue CCOs and revised Purchase Orders as required. Any changes in the
cost of the Products resulting from such ECO shall be deemed a part of
Customer's Total Liability as defined in Section XX. Similarly, if Sanmina
has exhausted its obligations under Section VI above to cancel the order for
or return any Parts rendered

                                     -4-

<PAGE>

obsolete or excess as a result of such an ECO. Such Parts shall become a part
of Customer's Total Liability but only to the extent specified in Section VI
above.

VIII.PRICING

     A.     The prices for the Products in effect at the signing of this
     Agreement are shown in EXHIBIT A under the caption "Products to be
     Manufactured and Cost to Customer". All prices are:

               1.     in U.S. Dollars;

               2.     exclusive of any applicable excise an sales taxes now
     existing or hereinafter imposed by any applicable taxing authority;

               3.     exclusive of transportation charges and duty applicable
     between the Delivery Point (as defined below) and the ultimate
     destination of the products; and

               4.     inclusive of packaging materials.

     B.     The prices shall be revised from time to time through issuance of
     Cost Change Orders generated by Elastic which may incorporate Parts Cost
     Reductions and/or Manufacturing Cost Reductions in accordance with
     Section V, the effect of ECOs, and other changes in Parts and
     manufacturing costs as may be agreed to by Elastic and Sanmina.

IX.  SHIPPING NOTIFICATIONS AND INVENTORY

     A.     From time to time, Customer may deliver a document that specifies
     a quantity of Products to be shipped, delivery information, including
     the particular shipper and account number for each end-user identified
     therein, and the target delivery date for each quantity of Products and
     each such end-user (a "SHIPPING NOTIFICATION"). Sanmina shall
     acknowledge in writing its receipt of all Shipping Notifications within
     1 day thereof, and indicate therein its acceptance or rejection of each
     such Shipping Notification, including without limitation the respective
     Product order and shipping information given for each end-user
     identified therein and whether Sanmina can meet the specified delivery
     requirements of each such end-user.

     B.     Sanmina agrees to carry a supply of Products in inventory
     sufficient to satisfy orders for Products represented by Shipping
     Notifications for a rolling two-week period, at Sanmina's expense (the
     "CONTRACTED SUPPLY"). For any Products carried as inventory in excess of
     the Contracted Supply at the request of Customer and beyond inventory
     required by the Forecast, Customer agrees to pay one percent (1%) of the
     cost of the Products per month, upon Customer's receipt of written
     request therefor. Sanmina further agrees to provide Customer with
     on-line, real-time access to its inventory management information that
     is acceptable to Customer, including without limitation access to serial
     numbers and MAC addresses for all Products in inventory using an
     inventory management format approved by Customer. Should such inventory
     monitoring not be available to Customer at any time and for any reason
     during the term of this Agreement Sanmina shall provide Customer with
     detailed written reports of Contracted Supply, including Products used
     for Advanced Replacement (as defined below) and B Stock (as defined
     below).

                                     -5-

<PAGE>

X.   SHIPPING, DELIVERY, AND ACCEPTANCE

     A.     Products shall be delivered based upon information contained in a
     Shipping Notification. Products will be shipped to the respective
     delivery address for each end-user of Customer specified in each
     Shipping Notification (i) F.O.B. Sanmina's plant located at the address
     specified in EXHIBIT A under the caption "Manufacturing Location"
     ("DELIVERY POINT"), or (ii) prepaid by Sanmina and charged to Customer
     by invoice, or (iii) via a shipper mandated by Customer and charged to a
     Customer-provided account with such shipper. Sanmina shall provide
     written confirmation of all shipments, including serial numbers, MAC
     addresses, waybill numbers, and carrier name, for each shipment. Risk of
     loss and title shall pass to Customer when such Products are delivered
     to the carrier (whether such carrier is a common carrier, a specified
     overnight courier service, or any other delivery service). Products held
     or stored by Sanmina at the Delivery Point or any other location shall
     be held or stored at the risk and expense of Sanmina, subject to
     Sanmina's right to the payment specified in Section IX(B) if Sanmina
     holds more than the Contracted Supply of Products. Sanmina shall use
     commercially reasonable efforts to deliver the Products according to the
     specified shipping instructions and on the agreed upon delivery dates,
     all as set forth in the Shipping Notification. In the event Sanmina
     becomes aware that it will not meet the delivery schedule. Sanmina shall
     immediately notify Customer of anticipated delays, and keep Customer
     apprised on a daily basis of the status of the Products. In the absence
     of any other specific instructions, Sanmina agrees to comply with the
     general delivery schedule set forth on EXHIBIT C for Shipping
     Notifications received under this Agreement.

     B.     The acceptance of a Product is subject to inspection by Customer
     and an end user of the Product. Acceptance shall be deemed not to have
     occurred until at least forty-five (45) days after delivery to the
     carrier. If a Product does not conform to the requirements of a Shipping
     Notification or part thereof or to the warranties set forth below, the
     entire quantity of Product delivered to such end-user may be returned to
     Sanmina at Sanmina's expense. Payment shall not constitute acceptance or
     be considered or be deemed a waiver of Customer's right to cancel or
     revoke any Shipping Notification or part thereof.

     C.     Unless otherwise specified by Customer, Sanmina shall ship the
     products to the delivery locations specified in the Shipping
     Notifications by the method Sanmina deems most advantageous.

     D.     Sanmina shall perform all administrative actions required to
     qualify Products for preferential treatment under the rules of any
     applicable trade treaty between Canada and the U.S.A., including,
     without limitation, the North America Free Trade Agreement ("NAFTA"). If
     a Product qualifies under NAFTA, Sanmina shall prepare and distribute a
     NAFTA Exporter's Certificate of Origin according to paragraph A or B
     below, whichever applies, and any other documents required. Sanmina
     shall respond to NAFTA Exporter's Certificate of Origin questionnaires
     and assist Customer in resolving any Product eligibility issues. Sanmina
     alone shall bear responsibility for all penalties and costs resulting
     from a NAFTA Exporter's Certificate of Origin subsequently being
     determined to be invalid.

                    1.     If an Exporter's Certificate of Origin is prepared
               for each shipment, Sanmina shall: (i) retain the original
               Exporter's Certificate of Origin in Sanmina's files with
               appropriate backup documentation, (ii) attach a copy of the
               Exporter's Certificate of Origin to the customs/shipping
               documents for the qualifying Product, and (iii) mark these
               customs/shipping documents with the legend: "Copy of North
               America Free Trade Certificate of Origin attached".

                                     -6-
<PAGE>

                    2.     If a blanket Exporter's Certificate of Origin is
               prepared, Sanmina shall: (i) retain the original Exporter's
               Certificate of Origin in Sanmina's files with appropriate
               backup documentation, (ii) mark the customs/shipping documents
               for the qualifying Product with the legend: "Copy of blanket
               Exporter's Certificate of Origin on file at Customer's customs
               offices in Alpharetta, GA (U.S.A.)", and (iii) mail copies of
               the Exporter's Certificate of Origin to the following office:

                               Elastic Networks, Inc.
                               6120 Windward Parkway
                               Suite 100
                               Alpharetta, GA 30005-4185

XI.  PAYMENT AND INVOICING

     Payment for Products shipped pursuant to and in accordance with Section
X hereof shall be due net forty-five (45) days from invoice date.
Products shall be invoiced when shipped by Sanmina. Sanmina will provide
Customer with a credit limit set at an amount to be determined by
Sanmina, PROVIDED that, at a minimum, such credit limit shall be set at
a level which corresponds to anticipated sales of Products at the level
projected by the Forecast throughout the 45-day permitted payment
period. In the event that Customer exceeds this credit limit or has
outstanding invoices for more than sixty (60) days which are not in
dispute or offset by the amounts due Customers by Sanmina pursuant to
this Agreement, Sanmina will give Customer written notice of its intent
to stop shipments of Products to Customer. Customer shall have ten (10)
days from receipt of such notice to make sufficient payment to bring its
account consistent with terms outlined above. If Customer fails within
the ten (10) day period to make sufficient payment, Sanmina may stop
shipments of Products to Customer until such payment is made.

XII. WARRANTIES

     Sanmina warrants to Customer that the Products will at the time of
delivery (a) be new and free and clear of all liens and encumbrances,
(b) conform to the Specifications, and (c) be free from defects in
material and workmanship for a period of twelve (12) months from the
date the Product is first placed into service by an end user (such twelve
(12) month period is hereinafter referred to as the "WARRANTY PERIOD").
This warranty shall survive inspection, acceptance and payment. Sanmina
acknowledges that modification, if any, of the Specifications by it or
its employees or any person other than Customer will constitute a
violation of this warranty.

          EXCEPT FOR THE ABOVE EXPRESS WARRANTIES. SANMINA MAKES AND CUSTOMER
          RECEIVES NO WARRANTIES OR CONDITIONS ON THE PRODUCTS, EXPRESS,
          IMPLIED, STATUTORY, OR OTHERWISE, AND SANMINA SPECIFICALLY
          DISCLAIMS ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A
          PARTICULAR PURPOSE.

XIII.EXCLUSIONS FROM WARRANTY

     A.     The foregoing Section XII notwithstanding, no warranty is given
     by Sanmina for Parts purchased from third-party vendors ("VENDOR
     PARTS"). If Vendor Parts are defective, Sanmina will use best efforts to
     resolve the warranty issue on behalf of Customer with the applicable
     third-party vendors. The foregoing notwithstanding, in the event Sanmina
     is unable to resolve a warranty dispute with a third-party vendor to the
     satisfaction of Customer, Customer shall look to the manufacturers of
     Vendor Parts for any remedy in respect of defective Vendor Parts. Sanmina

                                     -7-
<PAGE>

     shall pass the unexpired warranty for such Vendor Parts provided by
     third-party vendors or passed on by such third-party vendors from the
     original manufacturers through to Customer.

     B.     The warranty set forth in Section XII shall not apply to any
     defect which has been caused by Customer or an end user which arises
     from mishandling, misuse, or improper repair.

XIV. REMEDIES UNDER WARRANTY

     Any Product that does not conform to the warranty described in Section
XII may be returned to Sanmina. Sanmina shall promptly repair or replace such
defective Products without charge to Customer or any end user of a Product
and, subject to the other terms of this Agreement, shall return such repaired
or replaced Product not later than ten (10) days of its receipt of such
non-conforming Product. Without altering or diminishing Sanmina's obligations
under such warranty for all Products manufactured under this Agreement,
Sanmina shall facilitate and implement Customer's "ADVANCE REPLACEMENT"
program the conditions of which are described in EXHIBIT B hereto. Sanmina
shall designate a specific contact person and telephone number which shall be
exclusively used for Customer's warranty and Advance Replacement, purchases
of Products, calls for Product support, RMA's, and other Product issues.
Sanmina shall maintain the RMA system database for Customer.  Sanmina shall
issue monthly reports to Customer that detail the number of calls received,
the number of Advance Replacement Products shipped, the number of Products
returned to Sanmina, and a summary of Test results on returned Products.
Sanmina shall make use of the test results on returned Products to evaluate
the reliability of Parts and possible improvements in the manufacturing
process. Sanmina shall provide Customer a monthly report showing the root
cause analysis for each RMA.

XV.  OUT OF WARRANTY REPAIRS

     Sanmina shall provide Advance Replacement services to purchasers
of Products, who participate in Customer's annual support program
("Elastic Extended Warranty and Support Program" or other such program).
Customer will pay Sanmina for all out of warranty repairs and out of
warranty Advance Replacement in accordance with Exhibit A hereto under
the caption "Spares and Replacement Pricing." Sanmina shall maintain
levels of spare and replacement Parts and Products inventory sufficient
to provide either next day shipment or same day premium service if
requested by Customer, and shall maintain levels of repaired Products as
agreed upon by both parties ("B STOCK"). Customer may monitor the levels
of B Stock in the same manner as that provided in Section IX(B) for
maintenance and reporting of inventory, and Sanmina agrees to limit or cease
adding to B Stock inventory levels upon receipt of written instructions from
Customer.

XVI. CONFIDENTIALITY; INTELLECTUAL PROPERTY

     For purposes of this Section XIV, "OWNER" means the party disclosing
Proprietary Information, whether such party is Customer or Sanmina,
"RECIPIENT" is the party receiving Proprietary Information, whether such party
is Customer or Sanmina, "PROPRIETARY INFORMATION" means, collectively,
Confidential Information and Trade Secrets, "CONFIDENTIAL INFORMATION" means
any data or information obtained from one party hereunder and provided to the
other party, that is valuable to its owner and not generally known by the
public, including without limitation, any data or information defined herein
as a Trade Secret, but which is determined by a court of competent
jurisdiction not to rise to the level of a trade secret under applicable law,
and "TRADE SECRETS" means information without regard to form which: (a)
derives economic value, actual or potential, from not being generally known
to, and not being readily ascertainable by proper means by other persons who
can obtain economic value from its disclosure or use, and (b) is the subject
of efforts that are reasonable under the circumstances to maintain its
secrecy.

                                      -8-

<PAGE>

       Customer and Sanmina acknowledge and agree that during the term of this
Agreement each party will have access to and disclose to the other
Proprietary Information. Sanmina acknowledges that the Products contain
Proprietary Information of Customer. Each party acknowledges that the loss of
competitive advantage due to unauthorized disclosure or unauthorized use of
Owner's Proprietary Information will cause great injury and harm to the
Owner. Recipient covenants and agrees that it shall not, without the prior
written, consent of Owner, or as set forth herein, directly or indirectly,
(i) disclose, divulge, distribute, publish, reproduce, decompile, reverse
engineer, transmit or transfer to others Owner's Proprietary Information, or
any portions thereof, by any means or in any form, (ii) make use of the
Proprietary Information other than as expressly permitted under this
Agreement, or (iii) disclose, in whole or part, any of Owner's Proprietary
Information to any individual, entity or other person, except to those of
Recipient's employees or representatives who (a) require access for
Recipient's authorized use of Owner's Proprietary Information, and (b) are
bound to comply with use and non-disclosure restrictions substantially the
same as those stated in this Agreement. Recipient shall cause its employees
and representatives to execute appropriate confidentiality agreements.  If an
unauthorized use or disclosure occurs, Recipient will immediately notify
Owner and assist Owner in recovering Owner's Proprietary Information and
prevent its subsequent unauthorized use or dissemination. The restrictions
set forth herein shall continue (i) with respect to the Trade Secrets for as
long as such information continues to be a Trade Secret under applicable law,
and (ii) with respect to Confidential Information, for a period of five (5)
years from the date of expiration or termination of this Agreement.

       At all times during the Term hereof Customer shall own all
intellectual property constituting Proprietary Information relating to the
manufacturing and related services contemplated by this Agreement, including
without limitation all intellectual property conceived, created, developed,
or reduced to practice by or on behalf of Customer in the course of its
performance under this Agreement. For purposes of this Agreement,
"intellectual property" includes without limitation any invention, discovery,
patent, utility model, service, copyright, industrial design or integrated
circuit topography right, or any rights whatsoever in processes, techniques,
improvements, modifications, computer software and related data, or any other
tangible or intangible right or privilege of any nature relating to any of
the above, in all cases applicable all over the world whether registered or
not.

XVII.  INDEMNIFICATION BY CUSTOMER

       Customer agrees to defend, indemnify, and hold harmless Sanmina from
and against any and all third party claims, demands, liabilities, damages,
losses, awards, suits, proceedings, causes of action, and costs (including
reasonable legal fees and expenses) in respect of any claim that the Products
infringe any existing United States copyright or patent of any third party
issued no later than the date of this Agreement, PROVIDED that: (i) Sanmina
provides Customer with prompt written notice of the initial claim and filing
of the lawsuit relating thereto; (ii) Sanmina permits Customer to assume the
entire claim to select legal counsel and to defend, compromise, or settle the
lawsuit in Customer's sole discretion; and (iii) Sanmina provides Customer
with all available information, assistance, authority, and cooperation to
enable Customer to defend, compromise, or settle the claim or lawsuit. This
Section sets forth the sole and exclusive remedy of Sanmina against Customer
and the complete liability of Customer with respect to any claim against
Sanmina for infringement of the Products on the intellectual property rights
of any person. The maximum liability of Customer under this Section XVII
shall not exceed the amounts paid to Sanmina in respect of Shipping
Notifications over the six (6) months immediately preceding the date of the
claim of infringement.

XVIII. INDEMNIFICATION BY SANMINA

       Sanmina shall indemnify and save Customer and, if applicable, each of
Customer's respective customers harmless from any liability or claim
(including, without limitation, the costs and reasonable

                                      -9-

<PAGE>

attorney's fees in connection therewith) (a) that may be made by Customer or
any third party for injury, including death, to persons or damage to property
which is caused by Sanmina's acts or omissions or defects in the manufacture of
the Products, OR (b) that may be made by Customer or third party (such as an
owner or director of Customer) arising out of a breach by Sanmina of this
Agreement, including without limitation the Confidentiality provisions of
this Agreement.

     Sanmina shall maintain during its performance under this Agreement
General Liability Insurance, including contractual, products liability and
broad form vendors' endorsement with the limits adequate in the judgment of
Customer to protect Customer's interest. Upon the written request of Customer
from time to time, Sanmina shall deliver evidence of such insurance and in
the event the amount of such insurance is not reasonably satisfactory to
Customer, Sanmina shall procure additional coverage as reasonably requested
by Customer. Such insurance shall be primary and non-contributory with
respect to any insurance which Customer may have.

XIX. QUALITY, INSPECTION, AND REPORTING

     Customer will have the right at all reasonable times, upon reasonable
advance notice, to visit Sanmina's plant to inspect the work performed on the
Products. Inspection of the work shall not relieve Sanmina of any of its
obligations under the Agreement or accepted Shipping Notifications. Sanmina
shall provide Customer with all mutually agreed upon quality reports at
agreed upon intervals. Sanmina reserves the right to restrict Customer's
access to the plant or any area within it as reasonably necessary to protect
confidential information of Sanmina or its other customers. Customer and
Sanmina will implement a joint quality improvement program that will develop
and implement a continuous quality improvement.

XX.  TERMINATION

     Either party may, without penalty, terminate this Agreement upon
ninety-(90) days written notice to the other party in either one of the
following events:

     A.     The other party materially breaches this Agreement and such
     breach remains uncured for sixty (60) days following written notice of
     breach given by the non-breaching party;

     B.     The other party becomes involved in any voluntary or involuntary
     bankruptcy or other insolvency petition or proceeding for the benefit of
     its creditors, and such petition, assignment or proceeding is not
     dismissed with sixty (60) days after it was filed.

     Additionally, Customer may terminate this Agreement for any reason
without penalty upon ninety (90) day's written notice to Sanmina. Upon any
termination hereunder, Sanmina shall provide Customer within five (5) Working
days of termination with a complete accounting of Customer's Total
Liabilities at the date of termination, supported by detailed reports of all
inventories of Products, Parts, work-in-progress, and raw materials ordered
and received and ordered but not received. Within five (5) Working days of
its receipt of Sanmina's accounting report of Customer's Total Liabilities,
Customer shall notify Sanmina of any disputed costs or charges listed as
Customer's Total Liabilities by Sanmina. Customer agrees to be liable only
upon termination for a maximum of two (2) weeks of finished product, two (2)
weeks of work-in-progress, and four (4) weeks of raw materials, plus any
Customer authorized procurement of long lead time raw materials ("Total
Liability"). Customer shall pay all undisputed charges in net forty-five (45)
days. Customer shall have the right to offset the amount Sanmina owes to
Customer against Customer's Total Liability otherwise due to Sanmina under
this Agreement.

                                     -10-
<PAGE>

      Certain obligations, terms, and provisions of this Agreement, including
without limitation sections XVI, XVII, and XVIII and the respective
obligations therein, shall survive termination of this Agreement.

XXI.  LIMITATION OF LIABILITY

      IN NO EVENT WILL EITHER PARTY BE LIABLE FOR ANY SPECIAL, INDIRECT,
      CONSEQUENTIAL, OR INCIDENTAL DAMAGES, HOWEVER CAUSED AND ON ANY THEORY
      OF LIABILITY, ARISING IN ANY WAY OUT OF THIS AGREEMENT. THIS LIMITATION
      WILL APPLY EVEN IF THE OTHER PARTY HAS BEEN ADVISED OF THE POSSIBILITY
      OF SUCH DAMAGES, AND NOTWITHSTANDING ANY FAILURE OF ESSENTIAL PURPOSE
      OF ANY LIMITED REMEDY PROVIDED HEREIN.

XXII. MISCELLANEOUS

      A.     TRADEMARKS AND TRADE NAMES. Neither this Agreement not the sale
      of Products hereunder to Customer shall be deemed to give either party
      any right to use any of the other party's trademarks or trade names
      without such other party's specific, written consent.

      B.     COMPLIANCE WITH GOVERNMENTAL LEGAL REQUIREMENTS. Sanmina shall
      comply with the provisions of all applicable federal, state, and local
      laws, regulations, rules, and ordinances applicable to transactions
      governed by this Agreement, including without limitation those applying
      to FCC certification and UL clearance, and other similar governmental
      and safety certifications or approvals. Should the Products fail to
      meet such applicable approvals, standards, or regulations, other than
      as a result of pending applications or actions with respect to the
      issuance thereof, Sanmina [may/must] cease production until such
      applicable qualifications are met without causing breach of this
      Agreement.

      C.     GOVERNING LAW. This Agreement will be governed by and
      interpreted under the laws of the State of Georgia, without reference
      to conflict of laws principles.

      D.     JURISDICTION. For any dispute arising out this Agreement, the
      parties consent to personal and exclusive jurisdiction of and venue in
      the state and federal courts within Fulton County, Georgia and the
      Northern District of Georgia, respectively.

      E.     CURRENCY. All references to dollar amounts are to U.S. Dollars.

      F.     ENTIRE AGREEMENT; ENFORCEMENT OF RIGHTS. This Agreement sets
      forth the entire agreement and understanding of the parties relating to
      the subject matter herein and therein and merges all prior discussions
      between them. No modification of or amendment to this Agreement, nor
      any waiver of any rights under this Agreement, will be effective unless
      in writing signed by the party to be charged. The failure by either
      party to enforce any rights thereunder will not be construed as a
      waiver of any rights of such party.

      G.     ASSIGNMENT.  The rights and liabilities of the parties hereto
      will bind and incur to the benefit of their successors, executors or
      administrators. Sanmina may not assign or delegate its rights and
      duties under this Agreement without prior written the consent of
      Customer.

      H.     NOTICES. Any required notices thereunder will be given in
      writing at the address of each party set forth above, or to such other
      address as either party may substitute by written notice to

                                     -11-

<PAGE>

     the other in  the manner contemplated herein and will be deemed served
     when delivered by facsimile or mail or when tendered in person.

     I.     FORCE MAJEURE. Neither party will be liable to the other for any
     default thereunder if such default is caused by an event beyond such
     party's control, including without limitation acts or failures to act of
     the other party, strikes or labor disputes, component shortages,
     unavailability of transportation, floods, fires, governmental
     requirements and acts of God (a "FORCE MAJEURE EVENT"). In the event of
     threatened or actual non-performance as a result of any of the above
     causes, the non-performing party will exercise commercially reasonable
     efforts to avoid and cure such non-performance. Should a Force Majeure
     Event prevent a party's performance thereunder for a period in excess of
     thirty (30) days, then the other  may elect to terminate this Agreement
     by written notice thereof.

     J.     COUNTERPARTS. This Agreement may be executed in two or more
     counterparts, each of which will be deemed an original and all of which
     together will constitute one instrument.

IN WITNESS WHEREOF, this Agreement has been executed as of the date and year
first above written.

SANMINA CORPORATION                     ELASTIC NETWORKS, INC.

Signed: /s/                             Signed: /s/ Larry R. Hurtado
      --------------------------               ------------------------------

Name:                                   Name:   Larry R. Hurtado
      --------------------------               ------------------------------

Title:                                  Title:  VP, Development/Operations
      --------------------------               ------------------------------

Date:                                   Date:   10/04/99
      --------------------------               ------------------------------

                                    -12-

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