Document:

<PAGE>

                                                                   EXHIBIT 10.14

STATE OF GEORGIA

GWINNETT COUNTY

      This Lease Agreement is made this 22nd day of Dec., 1999, by and between
DUKE-WEEKS REALTY LIMITED PARTNERSHIP, an Indiana limited partnership,
hereinafter referred to as "Landlord", and VISIBLE GENETICS CORP. hereinafter
referred to as "Tenant".

                                 LEASED PREMISES

      1.01 Landlord hereby leases to Tenant, and Tenant hereby leases from
Landlord, the property hereinafter referred to as the LEASED PREMISES, described
as approximately 99,822 rentable square feet of office/warehouse at 100
Crestridge Drive, Suwanee, Georgia, Gwinnett County, in Horizon Park, as shown
on the plan attached hereto as Exhibit "A" and by reference incorporated herein.
The building in which the Leased Premises are located is herein referred to as
the "Building"; and the real property on which the building is situated is
herein referred to as the "Land".

                                      TERM

      2.01 TO HAVE AND TO HOLD said Leased Premises for a term of ten (10) years
one (1) month, commencing on February 15, 2000 as this date may be adjusted as
set forth herein ("Commencement Date"), and continuing until March 15, 2010.

                                     RENTAL

      3.01 As rental for the Leased Premises, Tenant agrees to pay to Landlord,
without offset or abatement (except as otherwise provided herein), the base
rental as set forth below:

21,000 square feet ("Initial Space")

      February 15, 2000 -- March 14, 2000 $7,367.50/month

Entire Leased Premises:

March 15, 2000 -- March 14, 2001    $35,020.89/month    $420,250.68/year
March 15, 2001 -- March 14, 2002    $36,102.29/month    $433,227.48/year
March 15, 2002 -- March 14, 2003    $37,183.70/month    $446,204.40/year
March 15, 2003 -- March 14, 2004    $38,265.10/month    $459,181.20/year
March 15, 2004 -- March 14, 2005    $39,429.69/month    $473,156.28/year
March 15, 2005 -- March 14, 2006    $40,594.28/month    $487,131.36/year
March 15, 2006 -- March 14, 2007    $41,842.06/month    $502,104.72/year
March 15, 2007 -- March 14, 2008    $43,089.83/month    $517,077.96/year
March 15, 2008 -- March 14, 2009    $44,420.79/month    $533,049.48/year
March 15, 2009 -- March 14, 2010    $45,751.75/month    $549,021.00/year

on or before the first day of each calendar month beginning on February 15, 2000
and thereafter for the remainder of the term, together with any other additional
rental as hereinafter set forth. Tenant shall pay interest at a rate of twelve
percent (12%) per annum on all late payments of rent. If the Lease shall
commence on any date other than the first day of a calendar month, or end on any
date, other than the last day of a calendar month, rent for such month shall be
prorated. Tenant has deposited with Landlord, upon delivery of this Lease
Agreement, an amount equal to Two Hundred Forty Five Thousand One Hundred Forty
Six and 14/100 ($245,146.14) Dollars, a portion of which, or Thirty Five
Thousand Twenty and 80/100 ($35,020.80) Dollars, is to be applied as first
month's rental, the remaining portion, or Two Hundred Ten Thousand One

<PAGE>

Hundred Twenty Five and 34/100 ($210,125.34) Dollars, shall be held as a
refundable interest bearing security deposit. At Tenant's option, Landlord shall
obtain a Certificate of Deposit in a federally-insured bank ("CD") with the
Tenant's security deposit, in which event Tenant shall be entitled to receive
all interest as paid unless and until such CD is used to cure a default
hereunder, but with payment to Tenant of any unpaid, accrued or future interest
commencing thereafter again if the security deposit is fully restored by Tenant.
Landlord may apply all or any pan of the security deposit to cure any default by
Tenant hereunder and Tenant shall promptly restore to the security deposit all
amounts so applied upon invoice therefor. If Tenant shall fully perform each
provision of this Lease, any portion of the security deposit which has not been
appropriated by Landlord in accordance with the provisions hereof shall be
returned to Tenant, with interest, within thirty (30) days after the expiration
of the term of this Lease. If at the commencement of the fourth year of the
Lease term there has been no breach of any undertaking by Tenant under the Lease
beyond any applicable notice and grace period and Visible Genetics, Inc.,
("Guarantor") has achieved "tangible net worth" (as hereinafter defined) of
Thirty Million Dollars ($30,000,000.00), then the Landlord agrees to refund
fifty percent (50%) of the security deposit together with accrued interest to
Tenant. Tangible Net Worth for the purpose of this Lease shall mean Tangible Net
Worth as determined by generally accepted accounting principles ("GAAP") which
for purposes hereof shall include cash and account receivables, and as certified
by the Chief Financial Officer of the Tenant.

      In addition, within thirty days of Lease execution, Tenant shall cause
Visible Genetics, Inc., ("Guarantor") to issue to Landlord, or its affiliate, a
warrant to purchase 10,000 shares of common stock of the Guarantor at a strike
price equal to the closing price of the Guarantor's common stock on the date of
Lease execution, said warrant to be in the form attached hereto as Exhibit "H".
For the purposes of this section, the date of Lease execution shall be the day
on which Tenant has executed the Lease.

      3.02 As consideration for Tenant's performance of all obligations to be
performed by Tenant under this Lease, Landlord shall contribute $5.50 per
rentable square foot contained in the Leased Premises, which is the sum of Five
Hundred Forty Nine Thousand Twenty One and 00/100 ($549,021.00) (the
"Allowance") towards the cost of tenant improvements to the Leased Premises on
the basis set forth in the plans and specifications attached, or to be attached,
hereto in Exhibit "B" (`Tenant improvements"). A construction management fee
equal to a $.25 per square foot contained in the Leased Premises shall be
deducted from the Allowance and paid to Landlord. The Allowance shall be used
for the construction of the Tenant improvements, alterations, improvements,
fixtures and equipment which become part of or are attached or affixed to the
Leased Premises, including walls, wall coverings and floor coverings, but
excluding trade fixtures, furniture and furnishings or other personal property.
In the event the cost of the Tenant Improvements exceeds the Allowance, the
excess shall be paid by Tenant. The construction management fee shall not apply
to such excess paid by Tenant.

      Landlord will disburse the Allowance to Tenant (in two equal draws), upon
compliance by Tenant with the following conditions:

      (a) The first draw shall be made when Tenant has approval by Gwinnett
County of all rough in inspections (framing, electrical, plumbing and HVAC) and
all walls have been double-sided.

            (i) Tenant shall submit to Landlord an application and certificate
for payment, showing the amount of the improvements installed or constructed
through the date of the draw request. The form shall be signed by Tenant and its
contractor and shall be accompanied by such documentation as is reasonably
required by Landlord to verify and ensure that the work shown on the draw
request has been completed.

            (ii) Tenant shall submit to Landlord such lien waivers and
affidavits as are necessary, in Landlord's opinion, to ensure that the Leased
Premises, the Building and the Land remain free and clear of all liens and other
encumbrances arising as a result of the installation and construction of the
Improvements. All such lien waivers and affidavits shall be satisfactory in form
and substance to Landlord.

                                        2

<PAGE>

      (b) The final draw will be paid to Tenant upon satisfaction of the
following conditions:

            (i) Tenant shall provide to Landlord such documentation as is
reasonably required by Landlord to verify and ensure that the Tenant
Improvements have been substantially completed (so called punch list items
excepted);

            (ii) a certificate of occupancy or a temporary certificate of
occupancy for the Leased Premises has been issued by the Gwinnett County and
City of Suwanee, if applicable. (Tenant agrees it will not occupy the Leased
Premises until a certificate of occupancy or a temporary certificate of
occupancy for the Leased Premises has been issued by the appropriate
governmental authority(ies).)

            (iii) Tenant shall submit to Landlord such lien waivers and
affidavits as are necessary, in Landlord's opinion, to ensure that the Leased
Premises, the Building and the Land remain free and clear of all liens and other
encumbrances arising as a result of the installation and construction of the
Tenant Finish Improvements. All such lien waivers and affidavits shall be
satisfactory in form and substance to Landlord.

      3.03 In addition to the base rental, Tenant agrees to pay Landlord as
additional rental, its pro rata share of the amounts described in subparagraphs
(a) and (b) below. Each year during the term hereof, Landlord shall give Tenant
written notice of its estimate of the amount of common area maintenance charges
and common area utility charges (collectively "Charges") for the Leased Premises
for the calendar year. Tenant shall, thereafter, during that calendar year, pay
to Landlord one-twelfth (1/12) of the amount set forth in said statement at such
time as its monthly installments of base rental hereunder are due and payable.
At such time as Landlord is able to determine the actual Charges for such
calendar year, Landlord shall deliver to Tenant a statement thereof and in the
event the estimated Charges differ from the actual Charges, any adjustment
necessary shall be made to additional rental payments next coming due under this
paragraph.

      (a) Landlord agrees to maintain those areas around the Building and in the
Project, including parking areas, planted areas, signs and landscaped areas.
Tenant agrees to pay to Landlord as additional rental its pro rata share of all
ground maintenance charges and other common area charges and expenses for the
Building and the Land ("CAM Charges"), estimated to be $.25 per square foot per
year. The term "grounds maintenance" shall include, without limitation, all
landscaping, planting, lawn and grounds care, irrigation costs, all repairs and
maintenance to the grounds, signs and other common areas around the Building and
in the Project and to all sidewalks, driveways, loading areas and parking areas,
all of which Landlord agrees to perform. CAM Charges shall not include items of
a capital nature.

      (b) Tenant shall pay directly to the utility provider the charges for gas,
water, electricity, fuel, light and heat, garbage collection services and for
all other separately metered utilities and sanitary services rendered to the
Leased Premises and used by Tenant. In the event any utilities furnished to the
Building or the Leased Premises are not separately metered, Tenant shall pay to
Landlord, as additional rental, the charges for all such services rendered to
the Leased Premises used by Tenant, unless Landlord reasonably determines that
Tenant's use of the Leased Premises justifies a disproportionate allocation of
utility costs to Tenant.

      3.04 Tenant agrees to pay as additional rent to Landlord, upon demand, its
pro rata share of any utility surcharges, or any other costs levied, assessed or
imposed by, or at the direction of, or resulting from statutes or regulations,
or interpretations thereof, promulgated by any Federal, State, Municipal or
local governmental authorities in connection with the use or occupancy of the
Leased Premises.

                         DELAY TN DELIVERY OF POSSESSION

      4.01 If Landlord cannot deliver the Initial Space to Tenant in such a
condition that allows the Tenant's contractor to obtain an interior finish
building permit for construction of the Tenant Improvements on or before the day
that Tenant executes the Lease, and the delay is in no way attributable to
Tenant Delays or an event of Force Majeure (as hereinafter defined) this Lease
shall not be void or voidable, however Landlord shall pay Tenant on demand, as
agreed upon

                                       3

<PAGE>

liquidated damages, the sum of Three Thousand and 00/100 ($3,000.00) Dollars for
each business day thereafter until the Initial Space is delivered to Tenant.
Landlord and Tenant agree the above amount is a reasonable estimate of the
damages Tenant would sustain if the completion of the Initial Space is delayed,
and that it is not and shall not be construed as a penalty. Provided, however,
in the event the Commencement Date is delayed due to Tenant Delays (as
hereinafter defined), than Tenant shall commence payment of rent as set forth
herein on the date that the Commencement Date would have occurred but for the
Tenant Delays.

      4.02 If Landlord cannot deliver the remaining Leased Premises to Tenant in
such a condition that allows the Tenant's contractor to obtain an interior
finish building permit for construction of the Tenant Improvements on January
15, 2000, and the delay is in no way attributable to Tenant Delays or an event
of Force Majeure (as hereinafter defined) this Lease shall not be void or
voidable, however Landlord shall pay Tenant on demand, as agreed upon liquidated
damages, the sum of Three Thousand and 00/100 ($3,000.00) Dollars for each
business day thereafter until the Initial Space is delivered to Tenant. Landlord
and Tenant agree the above amount is a reasonable estimate of the damages Tenant
would sustain if the completion of the Initial Space is delayed, and that it is
not and shall not be construed as a penalty. Provided, however, in the event the
Commencement Date is delayed due to Tenant Delays (as hereinafter defined), than
Tenant shall commence payment of rent as set forth herein on the date that the
Commencement Date would have occurred but for the Tenant Delays.

      4.03 In the event the Initial Space cannot be delivered to Tenant by the
date set forth in Section 4.01 above because of a Force Majeure event, then
notwithstanding any other provision herein Tenant's obligation to pay rent for
the Initial Space shall be abated until sixty (60) days after the date the
Initial Space is delivered to Tenant. In the event the remaining Leased Premises
cannot be delivered to Tenant by the date set forth in Section 4.02 above
because of a Force Majeure event, then notwithstanding any other provision
herein Tenant's obligation to pay rent for the remaining Leased Premises shall
be abated until sixty (60) days after the date the remaining Leased Premises is
delivered to Tenant.

      4.04 "Tenant Delays", as used herein, shall mean and refer to delays
directly or substantially attributable to or caused by Tenant or Tenant's
employees or agents. "Force Majeure", as used herein, shall mean a delay, not
within Landlord's control, in a party s performance hereunder due to act of God,
adverse weather, fire, earthquake, flood, explosion, war, invasion,
insurrection, riot, mob violence, sabotage, vandalism, failure of
transportation, strikes, lockouts, litigation, condemnation, requisition,
governmental restrictions including inability or delay in obtaining governmental
consents or permits, laws or orders of governmental, civil, military or naval
authorities, or any other cause, whether similar or dissimilar to the foregoing,
not within Landlord's control.

                             USE OF LEASED PREMISES

      5.01 The Leased Premises may be used and occupied only for manufacturing,
assembly, testing, warehousing and distribution of medical test and diagnostic
kits, medical diagnostics and screening, molecular biology laboratory, training,
showroom and general office purposes, some of which purposes may involve the
use, handling and storage of Class One, Class Two and Class Three biohazard
materials ("Permitted Biohazards") and for no other purpose or purposes, without
Landlord's prior written consent. Tenant shall promptly comply at its sole
expense with all laws, ordinances, orders, and regulations affecting the Leased
Premises and their cleanliness, safety, occupation and use. Tenant shall not do
or permit anything to be done in or about the Leased Premises that will in any
way increase the fire insurance upon the building. Tenant will not perform any
act or carry on any practices that may injure the building or be a nuisance or
menace to tenants of adjoining premises. Tenant shall not cause, maintain or
permit any outside storage on or about the Leased Premises, including pallets or
other refuse. The rear loading areas of the Tenant's unit must be clean and
unobstructed. On or before the Commencement Date, Tenant shall take possession
of, and, thereafter, continuously occupy the Leased Premises (if delivered as
provided herein) during the term of this Lease, and operate thereon the normal
business operations of Tenant.

       5.02 Tenant shall, at Tenant's sole cost and expense, comply fully with
all environmental laws and regulations, and all other legal requirements,
applicable to Tenant's operations at, on or

                                        4
<PAGE>

within, or to Tenant's use and occupancy of, the Leased Premises. Tenant shall
not (either with or without negligence) cause or permit the escape, disposal or
release of any biologically or chemically active or other hazardous substances,
or materials. Tenant shall not allow the storage or use of such substances or
materials in any manner not sanctioned by law or by the typical standards
prevailing in the industry for the storage and use of such substances or
materials, nor allow to be brought into the Project any such materials or
substances except to use in the ordinary course of Tenant's business, and then
only after written notice is given to Landlord of the identity of such
substances or materials. Notwithstanding the above, Landlord understands and
agrees that Tenant's ordinary course of business may involve and require the use
of the Permitted Biohazards, and that Tenant may bring to, store on and use the
Leased Premises for its purposes such Permitted Biohazards without the further
consent of Landlord being required. Without limitation, hazardous substances and
materials shall include those described in the Comprehensive Environmental
Response, Compensation and Liability Act of 1980, as amended, 42 U.S.C. Section
9601 et seq., the Resource Conservation and Recovery Act, as amended, 42 U.S.C.
Section 6901 et seq., any applicable state or local laws and the regulations
adopted under these acts. If any lender or governmental agency shall ever
require testing to ascertain whether or not there has been any release of
hazardous materials, then the reasonable costs thereof shall be reimbursed by
Tenant to Landlord upon demand as additional charges if such requirement applies
to the Leased Premises. In addition, Tenant shall execute affidavits,
representations and the like from time to time at Landlord's request concerning
Tenant's best knowledge and belief regarding the presence of hazardous
substances or materials on the Leased Premises. In all events, Tenant shall
indemnify Landlord in the manner elsewhere provided in this lease from any
release of hazardous materials on the Leased Premises occurring while Tenant is
in possession, or elsewhere if caused by Tenant or persons acting under Tenant.
The within covenants shall survive the expiration or earlier termination of the
lease term.

      5.03 Landlord represents and warrants that on the Commencement Date, the
Leased Premises shall either be in compliance with all governmental codes,
ordinances, rules and regulations, including environmental laws, or if required
at such time, shall be brought into such compliance. Landlord hereby agrees to
indemnify, defend and hold Tenant harmless from and against any claim, action,
damage or liability incurred by, or filed or asserted against, Tenant, and
arising out of the presence of hazardous materials in, on, about or underneath
the Leased Premises and resulting from the actions or omissions of (i) any
parties in possession of the Leased Premises prior to Tenant's possession, or
(ii) Landlord or its servants, employees, agents, representatives, contractors
or invitees. Landlord shall hold harmless and indemnify Tenant for, from and
against any clean-up costs, remedial costs, preventative costs, and or
governmental fees, costs, expenses, charges or the like arising from any
presence or alleged presence of any hazardous or toxic substances (as those
terms are defined in any state or federal statute or regulation) on, in or under
the Leased Premises which were present on the Leased Premises prior to the
commencement of the term of the Lease or which were released by Landlord or any
third parties unrelated to Tenant at the property containing the Leased
Premises. Notwithstanding anything in the foregoing to the contrary, Tenant
shall have no liability to Landlord or to any other party with respect to the
presence of hazardous materials in, on, about or underneath the Leased Premises
unless directly caused by the acts or omissions of Tenant, its servants,
employees, agents, representatives, contractors, or invitees. Nothing in this
paragraph shall be interpreted as imposing any liability on Landlord for any
other costs or expenses incurred by Tenant including any consequential damages
or lost sales or profits of Tenant resulting from any such presence or alleged
presence.

                                    UTILITIES

      6.01 Landlord shall not be liable in the event of any interruption in the
supply of any utilities. Tenant agrees that it will not install any equipment
which will exceed or overload the capacity of any utility facilities and that if
any equipment installed by Tenant shall require additional utility facilities,
the same shall be installed by Tenant at Tenant's expense in accordance with
plans and specifications approved in writing by Landlord. Tenant shall be solely
responsible for and shall pay all charges for use or consumption of sanitary
sewer, water, gas, electricity and any other utility services. In the event
Landlord determines that it is advisable to separately meter any utility
services provided to the Leased Premises, Landlord shall have the right to
install a sub-meter and bill Tenant for the actual cost thereof, which shall be
paid to Landlord within fifteen days (15) following billing.

                                        5
<PAGE>

                          ACCEPTANCE OF LEASED PREMISES

      7.01 Upon delivery of possession of the Leased Premises to Tenant, Tenant
agrees to execute and deliver to Landlord a Tenant's Acceptance of Premises, in
the form attached hereto as Exhibit "C", acknowledging that it has examined the
Leased Premises and accepts the same as being in the condition called for by
this Lease, and as suited for the uses intended by Tenant.

      7.02 A. Once the base building structure of the Initial Space is completed
and thereafter once the base building structure is completed as to the remaining
portion of the Leased Premises, the base building requirements are described in
Exhibit "G" attached hereto Tenant may enter upon the Initial Space or the
remaining portion of the Leased Premises for purposes of completing the Tenant
Improvements and for installing trade fixtures and telephones, erecting
temporary or permanent signs and doing such other work as may be appropriate or
desirable without being deemed thereby to have taken possession or obligated
itself to pay rent but Tenant agrees that: (a) Landlord shall have no liability
to Tenant for injury to any person or damage to any property of Tenant stored on
the Leased Premises except for damages caused by or resulting from the willful
acts, omissions or negligence of Landlord or its employees or agents, (b) Tenant
shall not interfere with Landlord's construction work on the Leased Premises,
(c) Tenant shall indemnify, protect and hold harmless Landlord from and against
any and all claims, demands, damages, losses, costs, expenses, liabilities and
actions at law or in equity based upon any occurrence or condition arising out
of or attributable to Tenant's acts, omissions, or negligence of Tenant or its
employees, contractors, agents or invitees exercise of such right, and (d)
Tenant shall be solely responsible for the permitting of any such work it
performs.

      B. Tenant and it's contractor, or contractors, shall be responsible for
the design, installation and construction of the Tenant Improvements to the
Leased Premises as shown on the plans and specifications (herein referred to as
the "Plans") set forth on Exhibit "B" attached hereto or as subsequently
attached hereto. Prior to the Tenant's commencing construction of the Tenant
Improvements, the Tenant must obtain the Landlord's approval of the Plans.
Landlord shall have three (3) business days after Tenant has submitted the
Plans, to review and approve the same. Landlord will notify Tenant in writing at
the time it approves the Plans which specific improvement, alteration, addition
or installation must be removed at the expiration or termination of this Lease,
provided that Landlord agrees that the Tenant Improvements identified on Exhibit
"B", or as they may be changed or added to prior to occupancy of the Leased
Premises by Tenant, need not be removed at the end of the term or any renewal or
extension thereof. Tenant shall have the right to make changes to the Plans with
Landlord's approval; however, changes to the Plans which increase the time for
completion of the Tenant Improvements, shall not delay commencement of payment
of rent under this Lease.

      C. All construction work done ,by Tenant in the Leased Premises shall be:
(i) completed by contractors previously approved by Landlord, Landlord
acknowledges that it approves of S&E Contractors, (ii) pursued diligently to
completion, and (iii) performed in a good and workmanlike manner, and in
compliance with all governmental regulations including, but not limited to, all
OSHA requirements. Tenant covenants and agrees that all contractors,
subcontractors and other persons or entities performing work for Tenant at the
Leased Premises will carry (i) liability insurance in the amount of
$1,000,000.00, and (ii) worker's compensation insurance in the amounts required
by law. In addition, Tenant and Landlord each shall use reasonable measures to
ensure that their contractors abide by the terms and conditions contained within
the Exhibit F attached hereto.

      D. Tenant covenants and agrees that all contractors, subcontractors and
other persons or entities performing work for Tenant at the Leased Premises
shall:

            (i) acknowledge Landlord as the general contractor on the shell and,
as such, Landlord shall be entitled to the final decision in all aspects of
Tenant's work which might impact the structural aspects of the Building;

            (ii) cooperate with Landlord in coordinating all work which might
interfere with that of the other;

                                        6
<PAGE>

             (iii) take all precautions to protect the work of Landlord and its
subcontractors; and

            (iv) adhere to Landlord's safety requirements as detailed on the
attached Exhibit F.

      E. Tenant covenants and agrees that the contractor shall be required to
clean up and haul away all debris and trash generated in the construction of the
Tenant Improvements and to maintain a clean jobsite. Should Tenant's contractor
not remove trash and debris within three (3) days of written notice to comply,
Landlord shall have the right to perform this work and charge all costs to
Tenant.

      F. Landlord will cooperate with Tenant and its contractors in a timely
manner, including requesting that the architect and engineers be available as
reasonably needed to facilitate completion of the Tenant Improvements by Tenant
in a timely manner.

      G. Tenant hereby indemnifies Landlord against, and shall keep all portions
of the Leased Premises, the Building and the Land free from liens for any work
performed, material furnished or obligations incurred by Tenant. Should any
liens or claims be filed against all or any portion of the Leased Premises, the
Building or the Land by reason of Tenant's acts, omissions or work performed by
any person or entity, Tenant shall cause same to be discharged by bond or
otherwise within sixty (60) days following notice thereof. If Tenant fails to
cause any such lien or claim to be so discharged within the required time,
Landlord may cause same to be discharged and may make any payment that Landlord,
in its reasonable judgment, considers necessary, desirable or proper in order to
do so. All amounts paid by Landlord shall bear interest at the lower of (i)
twelve percent (12%) per annum, or (ii) the highest rate permitted under
applicable law, from the date of payment by Landlord and shall be payable by
Tenant to Landlord upon written demand.

                          ALTERATIONS, MECHANICS' LIENS

      8.01 Alterations may not be made to the Leased Premises without prior
written consent of Landlord, and any alterations of the Leased Premises
excepting movable furniture and trade fixtures, manufacturing, assembly, test,
laboratory and similar equipment shall at Landlord's option become part of the
realty and belong to Landlord.

      8.02 Should Tenant desire to alter the Leased Premises and Landlord gives
written consent to such alterations, at Landlord's option, Tenant shall contract
with a contractor approved by Landlord for the construction of such alterations.
Upon completion of the work, Tenant shall provide lien waivers from the
subcontractors or a final affidavit of lien waiver from the general contractor.
(Lien waivers and the Affidavit of Lien Waiver shall be in a form acceptable to
Landlord.)

      8.03 Notwithstanding anything in paragraph 8.02 above, Tenant may, upon
written consent of Landlord, install trade fixtures, machinery or other trade
equipment in conformance with all applicable laws, statutes, ordinances, rules,
regulations, and the same may be removed upon the termination of this Lease
provided Tenant shall not be in default under any of the terms and conditions of
this Lease, and the Leased Premises are not damaged by such removal. Tenant
shall return the Leased Premises on the termination of this Lease in the same
condition as when rented to Tenant, reasonable wear and tear and fire and
casualty only excepted. Tenant shall keep the Leased Premises, the building and
property in which the Leased Premises are situated free from any liens arising
out of any work performed for, materials furnished to, or obligations incurred
by Tenant. All such work provided for above, shall be done at such times and in
such manner as Landlord may from time to time designate. Tenant shall give
Landlord written notice five (5) days prior to employing any laborer or
contractor to perform work resulting in an alteration of the Leased Premises so
that Landlord may post a notice of non-responsibility. Tenant will pay or cause
to be paid all costs and charges for work done by Tenant or caused to be done by
Tenant in or to the Leased Premises or any property in which Landlord may hold
any interest, and for all materials furnished for or in connection with such
work. Tenant will indemnify Landlord against, and hold harmless Landlord against
the liens and claims of lien and all other liabilities, liens, claims and
demands on account of such work by or on behalf of Tenant. If any such lien at
any time is filed against the Leased Premises or any part of the Building,
Tenant shall immediately cause such lien to be discharged of record, or at its
discretion bond off the lien pursuant to O.C.G.A. Sec. 44-14-364. Nothing
herein will be deemed the consent or agreement of Landlord to subject Landlord's
interest in the Leased Premises or Building to liability under any mechanics or
other lien law. In the event that Tenant fails to cause a lien which has been
filed to be discharged, or shall fail to bond off said lien as herein provided,
within ten (10) days of notice of said lien, in addition to all other rights and
remedies it may have under the Lease or at law, Landlord may, at its option, pay
such charge and related costs and interests and said amount and expenses,
including reasonable attorneys' fees shall be immediately due from Tenant to
Landlord as additional rent.

                          QUIET CONDUCT/QUIET ENJOYMENT

      9.01 Tenant shall not commit, or suffer any waste upon the Leased
Premises, or any nuisance, or other act or thing which may disturb the quiet
enjoyment of any other tenant in the Building or any building in the project in
which the Leased Premises are located.

      9.02 So long as Tenant is not in default in the payment of rent, or other
charges or in the performance of any of the other terms, covenants, or
conditions of the Lease, Tenant shall not be disturbed by Landlord or anyone
claiming by, through or under Landlord in Tenant's possession, enjoyment, use
and occupancy of the Leased Premises during the original or any renewal term of
the Lease or any extension or modification thereof

                             FIRE INSURANCE, HAZARDS

      10.01 No use shall be made or permitted to be made of the Leased Premises,
nor acts done which might increase the existing rate of insurance upon the
building or cause the cancellation of any insurance policy covering the
building, or any part thereof, nor shall Tenant sell, or permit to be kept, used
or sold, in or about the Leased Premises, any article which may be prohibited by
the Standard form of fire insurance policies. Tenant shall, at its sole cost and
expense, comply with any and all requirements pertaining to the Leased Premises,
of any insurance organization or company, necessary for the maintenance of
reasonable fire and public liability insurance, covering the Leased Premises,
building and appurtenances. Tenant's permitted uses as described elsewhere
herein shall be deemed not to be in violation of this Section but if there are
increased insurance premium costs resulting therefrom Tenant shall be
responsible for paying such costs.

       10.O2 Tenant shall maintain in full force and effect on all of its Tenant
Improvements, inventory, fixtures and equipment in the Leased Premises a policy
or policies of fire and extended coverage insurance with standard coverage
endorsement to the extent of at least eighty percent (80%) of their insurable
value.. Landlord will not carry insurance on Tenant's possessions. Tenant shall
furnish Landlord with a certificate of such policy within thirty (30) days of
the commencement of this Lease, and whenever required, shall satisfy Landlord
that such policy is in full force and effect.

                                 INDEMNIFICATION

      11.01 Except to the extent of claims arising from the negligence,
omissions or willful misconduct of Landlord or its agents, contractors or
employees Tenant shall indemnify and hold harmless Landlord against and from any
and all claims arising from Tenant's use of the Leased Premises, or the conduct
of its business or from any activity, work, or thing done, permitted or suffered
by the Tenant in or about the Leased Premises, and shall further indemnify and
hold harmless Landlord against and from any and all claims arising from any
breach or default in the performance of any obligation on Tenant's part to be
performed under the terms of this Lease, or arising from any act, neglect, fault
or omission of the Tenant, or of its agents or employees, and from and against
all costs, attorney's fees, expenses and liabilities incurred in or about such
claim or any action or proceeding brought relative thereto and in case any
action or proceeding be brought against Landlord by reason of any such claim,
Tenant upon notice from Landlord shall defend the same at Tenant's expense by
counsel, chosen by Tenant and who is reasonably acceptable to Landlord. Tenant,
as a material part of the consideration to Landlord, hereby assumes all risk of
damage to property or injury to persons in or about the Leased Premises from any
cause whatsoever except that which is caused by the failure of Landlord to
observe any of the terms and conditions of this Lease where such failure has
persisted for an unreasonable period of time after written notice of such
failure, and Tenant hereby waives all claims in respect thereof against
Landlord. B

                                       8
<PAGE>

      11.02 Landlord shall indemnify Tenant and hold Tenant harmless against and
from all claims arising from the negligence, omissions or willful misconduct of
Landlord, its agents, employees or contractors, with respect to the Leased
Premises.

      11.03 The obligations of Landlord and Tenant under this paragraph arising
by reason of any occurrence taking place during the term of this Lease shall
survive the termination or expiration of this Lease.

                                 WAIVER OF CLAIMS

      12.01 Notwithstanding any indemnity granted herein, and notwithstanding
any other term or provision of the Lease to the contrary, Landlord and Tenant
hereby both release the other and their respective employees, agents and
invitees from and waive any claims either may have against the other and their
employees, agents, servants or invitees for any loss or damage to the Building,
Leased Premises, Land, Project, improvements on or to the Building, Leased
Premises, Land, Project, or the contents of the foregoing, and any personal
property stored or placed thereon by either of them caused by any of the perils
insurable against under fire and extended coverage insurance policies with "all
risks" endorsement, whether such damage or loss was caused by the negligence of
either of them or their respective employees, agents, servants or invitees. The
foregoing mutual release and waiver of subrogation shall apply whether or not
such insurance on the Building, Leased Premises, Land, Project improvements,
contents, and/or personal property was in force at the time of the loss of
damage. Moreover, each party agrees to take all actions necessary to make the
foregoing release effective and binding upon their respective insurance carriers
so that such carriers specifically waive any right of subrogation that such
carriers might otherwise have against the other party and/or their respective
employees, agents, servants or invitees.

                                     REPAIRS

      13.01 Tenant shall, at its sole cost, keep and maintain the Leased
Premises and appurtenances and every part thereof (excepting foundations,
exterior walls, exterior glass and frames (to extent installed by Landlord) and
structural elements including roofs which Landlord agrees to repair) including
by way of illustration and not by way of limitation all windows, doors, any
store front and the interior of the Leased Premises, including all plumbing,
heating, air conditioning, sewer, electrical systems and all fixtures and all
other similar equipment serving the Leased Premises in good and sanitary order,
condition, and repair, reasonable wear and tear and fire and casualty excepted.
Tenant shall be responsible for all pest control within the Leased Premises,
including, but not limited to the eradication of any ants or termites should
infestation be observed during the term of the Lease. Tenant shall, at its sole
cost, keep and maintain all utilities, fixtures and mechanical equipment used by
Tenant in good order, condition, and repair, reasonable wear and tear and fire
and casualty excepted. All windows shall be washed and cleaned as often as
necessary to keep them clean and free from smudges and stains. In the event
Tenant fails to maintain the Leased Premises as required herein or fails to
commence repairs (requested by Landlord in writing) within thirty (30) days
after such request, or fails diligently to proceed thereafter to complete such
repairs, Landlord shall have the right in order to preserve the Leased Premises
or portion thereof, and/or the appearance thereof, to make such repairs or have
a contractor make such repairs and charge Tenant for the cost thereof as
additional rent, together with interest at the rate of twelve percent (12%) per
annum from the date of making such payments.

      13.02 Landlord agrees to keep in good repair the foundations, exterior
walls, exterior glass and frames (to extent installed by Landlord) and
structural elements including roof of the Leased Premises except repairs
rendered necessary by the negligence of Tenant, its agents, employees or
invitees. Landlord gives to Tenant exclusive control of Leased Premises and
shall be under no obligations to inspect said Leased Premises. Tenant shall
promptly report in writing to Landlord any defective condition known to it which
Landlord is required to repair, and Landlord shall move with reasonable
diligence to repair such item. Failure to report such defects shall make Tenant
responsible to Landlord for any additional liability incurred by Landlord by
reason of Tenant's failure to report such defects.

                                        9
<PAGE>

      13.03 Tenant shall obtain upon occupancy and keep current during the lease
term a service maintenance contract on the heating, ventilation and air
conditioning (HVAC) equipment serving the Leased Premises. The contract shall
be between Tenant and a dealer-authorized company acceptable to Landlord, and
shall at a minimum provide for an equipment check and tune-up service each
spring and fall, and filter and lubrication service every three months. A copy
of said contract shall be provided to Landlord, as well as any modification,
extension, renewal or replacement thereof.

      13.04 Landlord shall assign to Tenant all warranties which are legally
assignable, and if not assignable, shall cooperate with Tenant to enforce such
warranties. Landlord agrees to assign any and all manufacturers' warranties
directly to the Tenant, which warranties shall include, but not be limited to,
warranties for heating, ventilating and air conditioning systems, which shall be
the standard warranties available from the manufacturers.

                               SIGNS, LANDSCAPING

      14.01 Landlord shall have the right to control landscaping and Tenant
shall make no alterations or additions to the landscaping. Tenant shall have the
right, at their sole cost and expense, to construct a monument sign for the
Building comparable to other monument signs in the Project provided, Landlord
shall have the right to approve the placing of such signs and the size and
quality of the same. So long as Tenant occupies at least sixty percent (60%) of
the Building, Tenant shall be able to have exclusive use of any monument size
installed by Tenant. Tenant shall place no exterior signs on the Leased Premises
without the prior written consent of Landlord. Any signs not in conformity with
the Lease may be immediately removed by Landlord. Tenant shall have the right to
install a fence around the perimeter of the Building, provided however, Landlord
shall have the right to approve the size, materials, installation and appearance
of said fence, which approval shall not be unreasonably withheld, conditioned or
delayed. The Landlord agrees to pay for fifty percent (50%) of the fence up to a
maximum amount of Two Thousand Five Hundred Dollars ($2,500.00). Upon the
expiration of this Lease, if Landlord requests, Tenant shall promptly remove
said fence and correct any damage to the Property in any manner whatsoever
caused by the same.

                                ENTRY BY LANDLORD

      15.01 Tenant shall permit Landlord and Landlord's agents to enter the
Leased Premises at all reasonable times for the purpose of inspecting the same
or for the purpose of maintaining the building, or for the purpose of making
repairs, alterations, or additions to any portion of the building, including the
erection and maintenance of such scaffolding, canopies, fences and props as may
be required, or for the purpose of posting notices of non-responsibility for
alterations, additions, or repairs, or for the purpose of showing the Leased
Premises to prospective tenants, or placing upon the building any usual or
ordinary "for sale" signs, without any rebate of rent and without any liability
to Tenant for any loss of Occupation or quiet enjoyment of the Leased Premises
thereby occasioned; and shall permit Landlord at any time within six (6) months
prior to the expiration of this Lease, to place upon the Leased Premises any
usual or ordinary "to let" or "to lease" signs. Any entry by Landlord shall be
made during regular business hours or as otherwise acceptable to Tenant and
shall be made with not less than 24 hours. Written notice to Tenant (other than
in an emergency). In an emergency, Landlord shall have the right to enter the
Leased Premises for any proper purpose. Tenant shall have the right to install
an electronic or other security system, provided however it is previously
approved by Landlord and, Landlord shall at all times have and retain a key or
mechanism for the security system for the ability to unlock all of the exterior
doors about the Leased Premises. Notwithstanding the foregoing, Landlord shall
only have access to areas of the Leased Premises that contain the Permitted
Biohazards when accompanied by an employee or an agent of the Tenant that is
trained in the proper handling of such materials. Tenant shall have quiet
enjoyment and possession of the Leased Premises throughout the term of this
Lease, subject, however, to the terms and conditions hereof.

                                      TAXES

      16.01(a) Tenant shall, without notice or demand, as additional rent, pay
and discharge, on or before the last day on which the same may be paid without
penalty, "all taxes", (as hereinafter defined) which shall or may during the
term be levied, assessed or imposed on or become a lien

                                       10
<PAGE>

upon or grow due or payable out of or for or by reason of the Leased Premises
or any part thereof, or the Landlord's interest in the real property described
on Exhibit "A" hereto. For the purposes hereof "taxes" means all taxes at any
time imposed by the United States of America or by any state, city, county or
other political or taxing subdivision thereof upon or against this Lease, the
Leased Premises, the use or occupancy thereof, the buildings, improvements or
personality thereon, and all assessments imposed subsequent to the execution and
delivery of this lease by both Landlord and Tenant (including assessments for
benefits from public works or improvements, whether commenced or completed prior
to the commencement of the term hereof and whether or not to be completed within
said term), levies, license fees, permit fees, water rents and charges, sewer
rents, excises, franchises, imposts, interest, costs, penalties and charges,
general and special, ordinary and extraordinary, of whatever name, nature and
kind, and whether or not within the contemplation of the parties hereto, which
are now or may hereafter be levied, assessed, charged or imposed upon or against
this Lease, the Leased Premises, the use or occupancy thereof, or the building,
improvements or personal property thereon or which are or may become a lien on
any thereof. Notwithstanding anything hereinabove to the contrary, "taxes" shall
not include any penalties or interest imposed or incurred because of Landlord's
dilatory payment, unless the delay in payment is due to Tenant's breach of its
obligations under this Section 16.

      (b) All assessments imposed upon the Leased Premises during the term of
this Lease for public improvements which shall benefit the Leased Premises after
the expiration of this Lease shall be equitably pro rated, so that only the
portion of such assessments properly allocable to the term of this Lease shall
be included in determining Tenant's share of "taxes" in accordance with Section
16.01 (a) above.

      16.02 Tenant shall pay as additional rent the amount of all taxes, other
than income taxes, upon or measured by the rent payable hereunder, whether as a
sales tax, transaction privilege tax, excise tax, or otherwise, which additional
rent shall be due and payable at the same time as each installment of basic
rent.

      16.03 Joint Assessment. If the Leased Premises are not separately
assessed, Tenant's liability shall be an equitable proportion of the real
property taxes for all of the land and improvements included with the tax parcel
assessed, such proportion to be determined by Landlord from the respective
valuations assigned in the assessor's work sheets or such other information as
may be reasonably available. Landlord's reasonable determination thereof, in
good faith, shall be conclusive.

      16.04 Personal Property Taxes. Tenant shall pay prior to delinquency all
taxes assessed against and levied upon trade fixtures, furnishings, equipment
and all other personal property of Tenant contained in the Leased Premises or
elsewhere.

                                    INSURANCE

      17.01 Liability Insurance. Tenant, at its own expense, shall provide and
keep in force with companies acceptable to Landlord public liability insurance
for the benefit of Tenant against liability for bodily injury and property
damage in the amount of not less than One Million Dollars ($1,000,000.00)
combined single limit in respect to injuries to or death of more than one person
in any one occurrence, and Two Million Dollars ($2,000,000.00 in the aggregate,
Tenant shall also maintain an umbrella policy in the amount of One Million
Dollars ($1,000,000.00), such limits to be for any greater amounts as may be
reasonably indicated by circumstances from time to time existing. Tenant shall
furnish Landlord with a certificate of such policy within thirty (30) days of
the commencement date of this Lease and whenever required shall satisfy Landlord
that such policy is in full force and effect. Such policy shall name Landlord as
an additional insured with respect to liabilities arising out of the use of the
Leased Premises by Tenant and shall be primary and noncontributing with any
insurance carried by Landlord. The policy shall further provide that it shall
not be cancelled or altered without twenty (20) days prior written notice to
Landlord. The limits of said insurance shall not, however, limit the liability
of Tenant hereunder. if Tenant shall fail to procure and maintain said insurance
Landlord may, but shall not be required to procure and maintain the same but at
the expense of Tenant.

                                       11
<PAGE>

      17.02 Property Insurance. (a) Tenant shall maintain in full force and
effect on all of its Tenant Improvements, fixtures and equipment in the Leased
Premises a policy or policies of fire and extended coverage insurance with
standard coverage endorsement to the extent of at least eighty percent (80%) of
their insurable value. Landlord will not carry insurance on Tenant's
possessions. Tenant shall furnish Landlord with a certificate of such policy
within thirty (30) days of the commencement of this Lease, and whenever
required, shall satisfy Landlord that such policy is in full force and effect.

      (b) At Tenant's cost, Landlord shall obtain and keep in force during the
term of this Lease a policy or policies of insurance covering loss or damage to
the Leased Premises and Building, in the amount of the full replacement value
thereof, as the same may exist from time to time, but in no event less than the
total amount of promissory notes secured by liens on the Leased Premises against
all perils included within the classification of fire, extended coverage,
vandalism, malicious mischief, special extended perils (all risk) and sprinkler
leakage. Said insurance shall provide for payment of loss thereunder to Landlord
or to the holders of mortgages or deeds of trust on the Leased Premises.
Landlord shall, in addition, obtain at Tenant's expense and keep in force during
the term of this Lease a policy of rental income insurance covering a period of
one (1) year, which insurance shall also cover all real estate taxes and
insurance costs for said period.

      (c) if the Leased Premises are part of a larger building, or if the Leased
Premises are part of a group of buildings owned by Landlord, which are adjacent
to the Leased Premises, then Tenant shall pay for any increase in the property
insurance of such other building or buildings if said increase is caused by
Tenant's acts, omissions, use or occupancy of the Leased Premises.

      (d) All policies of property insurance insuring Landlord or Tenant's
property shall provide that the insurers waive any right of subrogation against
Landlord or Tenant and that any such waiver shall not adversely affect said
policies or prejudice the rights of the insured to recovery thereunder.

                                   ABANDONMENT

      18.01 Tenant shall not vacate nor abandon the Leased Premises at any time
during the term of this Lease; and if Tenant shall abandon, vacate or surrender
the Leased Premises, or be dispossessed by process of law, or otherwise, any
personal property belonging to Tenant and left on the Leased Premises shall, at
the option of the Landlord, be deemed abandoned and be and become the property
of Landlord.

                                   DESTRUCTION

      19.01 If the Building or Leased Premises or any portion thereof are
destroyed by storm, fire, lightning, earthquake or other casualty, Tenant shall
immediately notify Landlord. In the event the Building or the Leased Premises
cannot, in Landlord's reasonable judgment, be restored within one hundred eighty
(180) days of the date of such damage or destruction, this Lease shall terminate
as of the date of such destruction, and all rent and other sums payable by
Tenant hereunder shall be accounted for as between Landlord and Tenant as of
that date. Landlord shall notify Tenant within thirty (30) days of the date of
the damage or destruction whether the Building and the Leased Premises can be
restored within one hundred eighty (180) days. If this Lease is not terminated
as provided in this Paragraph, Landlord shall, to the extent insurance proceeds
payable on account of such damage or destruction are available to Landlord (with
the excess proceeds belonging to Landlord), using reasonable diligence, repair,
restore, rebuild, reconstruct or replace the damaged or destroyed portion of the
Leased Premises to a condition substantially similar to the condition which
existed prior to the damage or destruction. Provided, however, Landlord shall
only be required to repair, restore, rebuild, reconstruct and replace the base
building as shown on Exhibit "B" and detailed in Exhibit "G" ("Landlord's
Work"). Tenant shall, at its sole cost and expense, upon completion of the
Landlord's Work, repair, restore, rebuild, reconstruct and replace, as required,
any and all Tenant Improvements installed in the Leased Premises by Tenant and
all trade fixtures, personal property, inventory, signs and other contents in
the Leased Premises, and all other repairs not specifically required of Landlord
hereunder, in a manner and to at least the condition substantially similar to
that existing prior to the damage, provided however, if the destruction has
occurred in the lab or the

12

<PAGE>

manufacturing area, the Tenant shall have the option to either restore such
areas to the condition that existed prior to the damage or restore the damaged
area to be standard office space similar to the existing office space within the
Leased Premises, the plans and specifications for such office space would
require Landlord's prior review and approval. Tenant's obligation to pay Base
Rent and additional rent shall abate until the earlier of Tenant's occupancy or
sixty (60) days after Landlord has repaired, restored, rebuilt, reconstructed or
replaced the Leased Premises, as required herein, in proportion to the part of
the Leased Premises which are unusable by Tenant. In the event of any dispute
between Landlord and Tenant relative to the provisions of this paragraph, they
may each select an arbitrator, the two arbitrators so selected shall select a
third arbitrator and the three arbitrators so selected shall hear and determine
the controversy and their decision thereon shall be final and binding on both
Landlord and Tenant who shall bear the cost of such arbitration equally between
them. Landlord shall not be required to repair any property installed in the
Leased Premises by Tenant. Tenant waives any right under applicable laws
inconsistent with the terms of this paragraph. Notwithstanding the provisions of
this paragraph, if any such damage or destruction occurs within the final two
(2) years of the term hereof, and such damage affects a material portion of the
Leased Premises or Tenant's use thereof then Landlord or Tenant may, without
regard to the aforesaid 180-day period, terminate this Lease by written notice
to the other party.

                            ASSIGNMENT AND SUBLETTING

      20.01 Landlord shall have the right to transfer and assign, in whole or in
part its rights and obligations in the building and property that are the
subject of this Lease. Tenant shall not assign this Lease or sublet all or any
part of the Leased Premises without the prior written consent of the Landlord,
which shall not be unreasonably withheld or delayed. In the event of any
assignment or subletting, Tenant shall nevertheless at all times, remain fully
responsible and liable for the payment of the rent and for compliance with all
of its other obligations under the terms, provisions and covenants of this
Lease. If all or any part of the Leased Premises are then assigned or sublet,
Landlord, in addition to any other remedies provided by this Lease or provided
by law, may at its option, collect directly from the assignee or subtenant all
rents becoming due to Tenant by reason of the assignment or sublease. Any
collection directly by Landlord from the assignee or subtenant shall not be
construed to constitute a novation or a release of Tenant from the further
performance of its obligations under this Lease. In the event that Tenant
sublets the Leased Premises or any part thereof, or assigns this Lease and at
any time receives rent and/or other consideration which exceeds that which
Tenant would at that time be obligated to pay to Landlord, Tenant shall pay to
Landlord 100% of the gross excess in such rent as such rent is received by
Tenant and 100% of any other consideration received by Tenant from such
subtenant in connection with such sublease or, in the case of any assignment of
this Lease by Tenant, Landlord shall receive 100% of any consideration paid to
Tenant by such assignee in connection with such assignment; notwithstanding the
foregoing, Tenant shall be entitled to the excess profit earned from a sublease
or an assignment above a rental rate of $6.00 per square foot for the space that
is the subject of any such sublease or assignment. In addition, should Landlord
agree to an assignment or sublease agreement, Tenant will pay to Landlord on
demand the sum of $500.00 to partially reimburse Landlord for its costs,
including reasonable attorneys' fees, incurred in connection with processing
such assignment or subletting request.

                              INSOLVENCY OF TENANT

      21.01 Either (a) the appointment of a trustee in a Chapter 7 bankruptcy
proceeding to take possession of all or substantially all of the assets of
Tenant, or (b) a general assignment by Tenant for the benefit of creditors, or
(c) any action taken or suffered by Tenant under Chapter 7 of the bankruptcy act
shall, if any such appointments, assignments or action continues for a period of
sixty (60) days, constitute a breach of this Lease by Tenant, and Landlord may
at its election upon fifteen (15) days notice, terminate this Lease and in that
event be entitled to immediate possession of the Leased Premises and damages as
provided below.

                                BREACH BY TENANT

      22.01 In the event that (i) Tenant shall not make payment of any
installment of rent or other sum herein specified and such failure shall
continue for five business days after written notice

                                       13
<PAGE>

thereof from Landlord, but if a failure to pay Base Rent shall occur more than
twice in any twelve month period then no notice shall be required for any
subsequent failure to pay Base Rent when due, or (ii) Tenant shall fail to
observe or perform any other of Tenant's obligations hereunder and such failure
shall not be corrected within thirty days after written notice thereof from
Landlord (or such longer period if reasonably required and Tenant is proceeding
diligently to correct such failure), then this shall be considered a default
hereunder. In the event of a default, Landlord in addition to any and all other
rights or remedies that it may have hereunder, at law or in equity shall have
the right to either terminate this Lease or from time to time, without
terminating this Lease relet the Leased Premises or any part thereof for the
account and in the name of Tenant or otherwise, for any such term or terms and
conditions as Landlord in its sole discretion may deem advisable with the right
to make reasonable alterations and repairs to the Leased Premises. Tenant shall
pay to Landlord, as soon as ascertained, the costs and expenses reasonably
incurred by Landlord in such reletting or in making such reasonable alterations
and repairs. Should such rentals received from time to time from such reletting
during any month be less than that agreed to be paid during that month by Tenant
hereunder, the Tenant shall pay such deficiency to Landlord. Such deficiency
shall be calculated and paid monthly.

      22.02 No such reletting of the Leased Premises by Landlord shall be
construed as an election on its part to terminate this Lease unless a notice of
such intention be given to Tenant or unless the termination thereof be decreed
by a court of competent jurisdiction. Notwithstanding any such reletting without
termination, Landlord may immediately or at any time thereafter terminate this
Lease, and this Lease shall be deemed to have been terminated upon receipt by
Tenant of notice of such termination; upon such termination Landlord shall
recover from Tenant all damages that Landlord may suffer by reason of such
termination including, without limitation, all arrearages in rentals, costs,
charges, additional rentals, and reimbursements, the cost (including court costs
and attorneys' fees actually incurred) of recovering possession of the Leased
Premises, the actual or estimated (as reasonably estimated by Landlord) cost of
any alteration of or repair to the Leased Premises which is necessary or proper
to prepare the same for reletting and, in addition thereto, Landlord shall have
and recover from Tenant the difference between the present value (discounted at
a rate per annum equal to the discount rate of the Federal Reserve Bank of
Atlanta at the time the Event of Default occurs) of the rental to be paid by
Tenant for the remainder of the lease term, and the present value (discounted at
the same rate) of the rental for the Leased Premises for the remainder of the
lease term, taking into account the cost, time and other factors necessary to
relet the Leased Premises; provided, however that such payment shall not
constitute a penalty or forfeiture, but shall constitute full liquidated damages
due to Landlord as a result of Tenant's default. Landlord and Tenant
acknowledge that Landlord's actual damages in the event of a default by Tenant
under this Lease will be difficult to ascertain, and that the liquidated damages
provided above represent the parties' best estimate of such damages. The parties
expressly acknowledge that the foregoing liquidated damages are intended not as
a penalty, but as full liquidated damages, as permitted by Section 13-6-7 of the
Official Code of Ga. Annotated.

      22.03 Landlord agrees that the payment by the Guarantor of any rent or
other amount due Landlord hereunder, or the performance by Guarantor of any
obligation of Tenant hereunder, shall be deemed to be the making of a payment by
Tenant or the performance of the obligation by the Tenant.

                                 ATTORNEY'S FEES

      23.01 If Landlord and Tenant litigate or arbitrate any provision of this
Lease or the subject matter of this Lease, each party will pay its own legal
costs and expenses. If, without fault, either Landlord or Tenant is made a party
to any litigation instituted by or against the other, the other will indemnify
the faultless one against all loss, liability, and expense, including reasonable
attorneys' fees and court costs, incurred by it in connection with such
litigation.

                                  CONDEMNATION

      24.01 If, at any time during the term of this Lease, title to the entire
Leased Premises should become vested in a public or quasi-public authority by
virtue of the exercise of expropriation, appropriation, condemnation or other
power in the nature of eminent domain, or by voluntary transfer from the owner
of the Leased Premises under threat of such a taking then this Lease shall

                                       14
<PAGE>

terminate as of the time of such vesting of title, after which neither party
shall be further obligated to the other except for occurrence antedating such
taking. The same results shall follow if less than the entire Leased Premises be
thus taken, or transferred in lieu of such a taking, but to such extent that it
would be legally and commercially impractical for Tenant to occupy the portion
of the Leased Premises remaining, and impractical for Tenant to reasonably
conduct his trade or business therein.

      24.02 Should there be such a partial taking or transfer in lieu thereof,
but not to such an extent as to make such continued occupancy and operation by
Tenant an impracticality, then this Lease shall continue on all of its same
terms and conditions subject only to an equitable reduction in rent and other
expenses proportionate to such taking.

      24.03 In the event of any such taking or transfer, whether of the entire
Leased Premises, or a portion thereof, it is expressly agreed and understood
that all sums awarded, allowed or received in connection therewith shall belong
to Landlord, and any rights otherwise vested in Tenant are hereby assigned to
Landlord, and Tenant shall have no interest in or claim to any such sums or any
portion thereof, whether the same be for the taking of the property or for
damages, or otherwise. Nothing herein shall be construed, however, to preclude
Tenant from prosecuting any claim directly against the condemning authority for
loss of business, moving expenses, damage to, and cost of, trade fixtures,
furniture and other personal property belonging to Tenant; provided, however,
that Tenant shall make no claim which shall diminish or adversely affect any
award claimed or received by Landlord.

                                     NOTICES

      25.01 All notices, statements, demands, requests, consents, approvals,
authorization, offers, agreements, appointments, or designations under this
Lease by either party to the other shall be in writing and shall be sufficiently
given and served upon the other party, (i) by depositing same in the United
States mail, addressed to the party to be notified, postage prepaid and
registered or certified with return receipt requested; (ii) by recognized
overnight, third party prepaid courier service (such as Federal Express),
requiring signed receipt; (iii) by delivering the same in person to such party;
or (iv) by telecopy with delivery of an original copy of any such notice
delivered pursuant to (ii) or (iii) above to be received no later than the next
business day. Notice personally delivered or sent by courier service, or
telecopy shall be effective upon receipt. Any notice mailed in the foregoing
manner shall be effective three (3) business days after its deposit in the
United States mail. Either party may change its address for notices by giving
notice to the other as provided above. For purposes of notice, the addresses of
the parties shall be as follows:

      (a)   To Tenant at the Leased Premises; addressed to the attention of the
            Chief Operating Officer; with a copy to Visible~Genetics, Inc., 700
            Bay Street, Suite 1000, Toronto, Ontario, Canada M5G1Z6, Attention
            Chief Executive

      (b)   To Landlord, addressed to Landlord at 4497 Park Drive, Norcross,
            Georgia 30093, with a copy to such other place as Landlord may from
            time to time designate by notice to Tenant.

                                     WAIVER

      26.01 The waiver by either party of any breach of any term, covenant, or
condition herein contained shall not be deemed to be a waiver of such term,
covenant, or condition or any subsequent breach of the same or any other term,
covenant, or condition herein contained. The subsequent acceptance of rent
hereunder by Landlord shall not be deemed to be a waiver of any preceding breach
by Tenant of any term, covenant, or condition of this Lease, other than the
failure of Tenant to pay the particular rental so accepted, regardless of
Landlord's knowledge of such preceding breach at the time of acceptance of such
rent.

                             EFFECT OF HOLDING OVER

      27.01 If Tenant should remain in possession of the Leased Premises after
the expiration of the lease term and without executing a new lease, then such
holding over shall be construed as a tenancy from month to month, subject to all
the conditions, provisions, and obligations of this

                                       15

<PAGE>

Lease insofar as the same are applicable to a month to month tenancy, except
that the rent payable pursuant to subparagraph 3.01 hereof shall be 150% of the
rent payable pursuant to subparagraph 3.01.

                                  SUBORDINATION

      28.01 This Lease, at Landlord's option, shall be subordinate to any ground
lease, first priority mortgage, first priority deed of trust, or first priority
security deed now or hereafter placed upon the real property of which the Leased
Premises are a part and to any and all advances made on the security thereof and
to all renewals, modifications, consolidations, replacements and extensions
thereof.

      28.02 Tenant agrees to execute any documents reasonably required to
effectuate such subordination or to make this Lease prior to the lien of any
such ground lease, mortgage, deed of trust, or security deed, as the case may
be, including specifically a subordination, non-disturbance and attornment
agreement in the form hereto attached as Exhibit "D", and failing to do so
within ten (10) days after written demand, does hereby make, constitute and
irrevocably appoint Landlord as Tenant's attorney in fact and in Tenant's name,
place and stead, to do so. if requested to do so, Tenant agrees to attorn to any
person or other entity that acquires title to the real property encompassing the
Leased Premises, whether through judicial foreclosure, sale under power, or
otherwise, and to any assignee of such person or other entity.

                              ESTOPPEL CERTIFICATE

      29.01 Upon ten (10) days notice from Landlord to Tenant, Tenant shall
deliver a certificate dated as of the first day of the calendar month in which
such notice is received, executed by an appropriate officer, partner or
individual, in the form as Landlord may reasonably require and stating but not
limited to the following: (i) the commencement date of this Lease; (ii) the
space occupied by Tenant hereunder; (iii) the expiration date hereof; (iv) a
description of any renewal or expansion options; (v) the amount of rental
currently and actually paid by Tenant under this Lease; (vi) the nature of any
default or claimed default hereunder by Landlord and (vii) that Tenant is not in
default hereunder nor has any event occurred which with the passage of time or
the giving of notice would become a default by Tenant hereunder.

                                     PARKING

      30.01 Tenant shall have exclusive use of the parking areas designated as
parking areas on the site plan attached hereto as Exhibit "A". Tenant agrees to
park all Tenant's trucks in the parking spaces provided at the rear of the
building. "Parking" as used herein means the use by Tenant's employees, its
visitors, invitees, contractors and customers for the parking of motor vehicles
for such periods of time as are reasonably necessary in connection with use of
and/or visits to the Leased Premises. No vehicle may be repaired or serviced in
the parking area and any vehicle deemed abandoned by Landlord will be towed from
the project and all costs therein shall be borne by the Tenant. No area outside
of the Leased Premises shall be used by Tenant for storage without Landlord's
prior written permission. There shall be no parking permitted on any of the
streets or roadways located in Horizon.

                              MORTGAGEE PROTECTION

      31.01 In the event of any default on the part of Landlord, Tenant will
give notice by registered or certified mail to any beneficiary of a deed or
trust or holder of a security deed or mortgage covering the Leased Premises
whose name and address shall have been furnished to Tenant by Landlord in
writing prior to the default, and shall offer such beneficiary or holder a
reasonable opportunity to cure the default, including time to obtain possession
of the Leased Premises by power of sale or a judicial foreclosure, if such
should prove necessary to effect a cure.

                              PROTECTIVE COVENANTS

      32.01 This Lease is subject to the Protective Covenants of Horizon, and to
such rules and regulations as may hereafter be adopted and promulgated. In
addition, Tenant shall comply with all

16

<PAGE>

covenants, restrictions and other matters of record in the deed records of the
county in which the Leased Premises are located which affect or encumber the
Leased Premises, the Building or the Land.

                                   RELOCATION

      33.01 Intentionally deleted.

                              BROKERAGE COMMISSIONS

      34.01 Tenant's Agent and Landlord's Agent (collectively, "Agent") shall
each be entitled to receive a commission in the amounts, and upon the terms and
conditions, contained in a separate commission agreement between Landlord and
such parties.

      34.02 Tenant warrants and represents to Landlord that, other than Agent,
no other party is entitled, as a result of the actions of Tenant, to a
commission or other fee resulting from the execution of this Lease. Landlord
warrants and represents to Tenant that, except as set forth above, no other
party is entitled, as a result of the actions of Landlord, to a commission or
other fee resulting from the execution of this Lease. Landlord and Tenant agree
to indemnify and hold each other harmless from any loss, cost, damage or expense
(including reasonable attorneys' fees) incurred by the nonindemnifying party as
a result of the untruth or incorrectness of the foregoing warranty and
representation, or failure to comply with the provisions of this subparagraph.

      34.03 Tenant's Agent is representing Tenant in connection with this Lease,
and is not representing Landlord. Landlord's Agent, or employees of Landlord or
its affiliates, are representing Landlord and are not representing Tenant.

      34.04 The parties acknowledge that certain officers, directors,
shareholders, or partners of Landlord or its general partner(s), are licensed
real estate brokers and/or salesmen under the laws of the State of Georgia.
Tenant consents to such parties acting in such dual capacities.

                            MISCELLANEOUS PROVISIONS

      A. Whenever the singular number is used in this Lease and when required by
the context, the same shall include the plural, and the masculine gender shall
include the feminine and neuter genders, and the word "person" shall include
corporation, firm or association. If there be more than one tenant, the
obligations imposed upon Tenant under this Lease shall be joint and several.

      B. The headings or titles to paragraphs of this Lease are for convenience
only and shall have no effect upon the construction or interpretation of any
part of this Lease.

      C. This instrument contains all of the agreements and conditions made
between the parties to this Lease and may not be modified orally or in any other
manner than by agreement in writing signed by all parties to this Lease.

      D. Where the consent of a party is required, such consent will not be
unreasonably withheld or delayed.

      E. This Lease shall create the relationship of Landlord and Tenant between
Landlord and Tenant; no estate shall pass out of Landlord; Tenant has only a
usufruct, not subject to levy and/or sale and not assignable by Tenant except as
provided in paragraph 20.01 hereof.

      F. Except as otherwise expressly stated, each payment required to be made
by Tenant shall be in addition to and not in substitution for other payments to
be made by Tenant.

      G. All covenants and agreements to be performed by Tenant under any of the
terms of this Lease shall be performed by Tenant at Tenant's sole cost and
expense and without any abatement of rent.

17
<PAGE>

      H. No payment by Tenant or receipt by Landlord of a lesser amount than any
installment or payment of rent due shall be deemed to be other than on account
of the amount due, and no endorsement or statement on any check or payment of
rent shall be deemed an accord and satisfaction. Landlord may accept such check
or payment without prejudice to Landlord's right to recover the balance of such
installment or payment of rent, or pursue any other remedies available to
Landlord.

      I. Subject to paragraph 20, the terms and provisions of this Lease shall
be binding upon and inure to the benefit of the heirs, executors,
administrators, successors, and assigns of Landlord and Tenant. In the event of
any conveyance by Landlord of its interest in and to the Leased Premises, the
Building or the Land, all obligations under this Lease of the conveying party
shall cease and Tenant shall thereafter look solely to the party to whom the
Leased Premises were conveyed for performance of all of Landlord's duties and
obligations under this Lease.

      J. Tenant acknowledges and agrees that Landlord shall not provide guards
or other security protection for the Leased Premises and that any and all
security protection shall be the sole responsibility of Tenant.

      K. This Lease shall be governed by Georgia law.

      L. Time is of the essence of each term and provision of this Lease.

      M. Tenant shall not record this Lease or a memorandum thereof without the
written consent of Landlord. Upon the request of Landlord, Tenant shall join in
the execution of a memorandum or so-called "short form" of this Lease for the
purpose of recordation. Said memorandum or short form of this Lease shall
describe the parties, the Leased Premises and the lease term, and shall
incorporate this Lease by reference.

      N. Landlord's liability for performance of its obligations under the terms
of this Lease shall be limited to its interest in the Leased Premises.

      0. It is a condition to Landlord's obligations under this Lease that
Tenant, and Tenant agrees to, obtain and deliver to Landlord a fully executed
guaranty in the form attached to this Lease as Exhibit "I".

                    (SIGNATURES CONTAINED ON FOLLOWING PAGE)

                                       18

<PAGE>

      IN WITNESS WHEREOF, the parties hereto who are individuals have set their
hands and seals, and the parties who are corporations have caused this
instrument to be duly executed by its proper officers and its corporate seal to
be affixed, as of the day and year first above written.

Signed, sealed and delivered                LANDLORD:
as to Landlord, in the
presence of:                                DUKE-WEEKS REALTY LIMITED
                                            PARTNERSHIP,
                                            an Indiana limited partnership
----------------------------
Unofficial Witness                          By: Duke-Weeks Realty Corporation
                                                an Indiana corporation,
                                                its sole general partner
----------------------------
Notary Public                               By:
                                               -----------------------------
                                            Name:
                                                 ---------------------------
                                            Its:
                                                ----------------------------

Signed, sealed and delivered                TENANT:
as to Tenant, in the presence
of                                          VISIBLE GENETICS CORP.
         [ILLEGIBLE]
----------------------------                By:        [ILLEGIBLE]
Unofficial Witness                             -----------------------------
                                            Name:      [ILLEGIBLE]
         [ILLEGIBLE]                             ---------------------------
----------------------------                Its:       [ILLEGIBLE]
Notary Public                                   ----------------------------

                                            ATTEST:

                                             By:        [ILLEGIBLE]
                                                -----------------------------
                                             Name:      [ILLEGIBLE]
                                                  ---------------------------
                                             Its:       [ILLEGIBLE]
                                                 ----------------------------

                                                     (Corporate Seal)

                                       19
<PAGE>

                                  EXHIBIT "A"
                                    SITE PLAN

[GRAPHIC OMITTED]

                        Horizon Business Distribution III
                     100 Crestridge Drive, Lawrenceville, GA

Building Specifications

o 99,822 square feet on 9.66 acres

o 40' x 40' column spacing; 200' depth

o Brick and block construction

o 22 dock-high doors with 7 knock-outs

o 24' minimum clear height

o Ballasted EPDM roof

o 128 parking spaces

o Class IV sprinkler system

 For more information, please call Duke-Weeks Realty Corporation
                             Mal Hill 770-717-3215
                                                              www. dukerelt.com

<PAGE>
                                   EXHIBIT "B"

                                   FLOOR PLAN

As shown on plans and specifications dated 12/17/99 and prepared for Tenant by
KG Architects.

<PAGE>

                                   EXHIBIT "C"

                             ACCEPTANCE OF PREMISES

Lessee:_______________________________________

Lessor:_______________________________________

Date Lease Signed:____________________________

Term of Lease:________________________________

Address of Leased Premises: Suite ____ containing approximately ____ square
feet, located at

      ________________________________________

      ________________________________________

Commencement Date:____________________________

Expiration Date:______________________________

The above described premises are accepted by Lessee as suitable for the purpose
for which they were let. The above described lease term commences and expires on
the dates set forth above. Lessee acknowledges that it has been received from
Lessor _________ number of keys to the leased premises. It is understood that
there is a punch list which will be completed after move-in and will be an
exhibit to the Tenant Estoppel.

LESSEE

________________________
 (Type Name of Lessee)
                                       WITNESS

By:_____________________           ______________________
      (Signature)                       (Signature)

________________________           ______________________
 (Type Name and Title)                   (Company)

                                       2
<PAGE>
                                   EXHIBIT "D"

             SUBORDINATION, NON-DISTURBANCE AND ATTORNMENT AGREEMENT

      THIS AGREEMENT, made as of the _ day of____ , 1995, between _____________
with offices at _____________________________ ("Tenant") and
______________________ (herein, together with its successors, transferees and
assigns, the "Mortgagee");

                                   WITNESSETH:

      WHEREAS, Mortgagee is about to or has heretofore granted to
_____________,a Georgia limited partnership (the "owner") a first mortgage loan,
which loan is secured by a security deed (herein "Mortgage") dated as of
_______, 199_ and duly recorded on _______, 199_ in the land records of Gwinnett
County, Georgia; and

      WHEREAS, the Mortgage is to be a first and prior lien upon the Owner's fee
estate in the real property described in Exhibit "A" annexed hereto ("Mortgaged
Premises"); and

      WHEREAS, Tenant is occupying a portion of the Mortgaged Premises under a
lease dated as of ____________, 199_. in which Owner is Landlord (the "Lease")
covering that portion of the Mortgaged Premises therein more particularly
described (the "Leased Premises"); and

      WHEREAS, Tenant desires to be assured of its continued and undisturbed
occupancy of the Leased Premises should the Mortgage be foreclosed or the
Mortgaged Premises sold pursuant to any power of sale contained therein and
Mortgagee is agreeable thereto.

      NOW, THEREFORE, in consideration of the mutual covenants contained in this
Agreement and in further consideration of the sum of ONE DOLLAR ($1.00) each to
the other in hand paid, the receipt whereof is hereby acknowledged, Tenant and
Mortgagee mutually covenant and agree as follows:

      FIRST: The Lease and all of Tenant's rights, interest and estate therein
and thereunder are hereby made subject and subordinate to the lien of the
Mortgage and to any extensions, renewals, replacements, modifications, additions
or consolidations thereof and to all rights, title and interest of Mortgagee and
its successors and assigns therein and thereunder.

      SECOND: In the event, however, proceedings shall ever be instituted by
Mortgagee to foreclose or liquidate the Mortgage, the Tenant's possession of its
leased portion of the Mortgaged Premises shall not be disturbed by the
foreclosure proceedings and the Mortgaged Premises shall be sold at any
foreclosure sale subject to Tenant's possession on condition that:

      (a)   there shall be, at the time of commencement of foreclosure
            proceedings, as well as all subsequent times, no default by Tenant
            in the due and timely observance and performance of any covenant and
            agreement in the Lease to be observed and performed by Tenant; and

      (b)   the Tenant shall not have entered into any agreement modifying any
            term, condition or agreement of the Mortgagee-approved Lease without
            the prior written consent of Mortgagee.

       THIRD: Tenant shall attorn to Mortgagee while Mortgagee is in possession
of the Mortgaged Premises, or to a Receiver appointed in any action or
proceeding to foreclose the Mortgage. In the event of the completion of
foreclosure proceedings and sale of the Mortgaged Premises or in the event the
Mortgagee should otherwise acquire possession of the Mortgaged Premises, the
Tenant will promptly upon demand attorn to the purchaser at the foreclosure sale
or to the Mortgagee, as the case may be, and will recognize such purchaser or
the Mortgagee as the Tenant's landlord. The Tenant agrees to execute and
deliver, at any time and from time to time, upon the request of the Mortgagee or
the purchaser at the foreclosure sale, as the case may be, any

<PAGE>

instrument which may be necessary or appropriate to such successor landlord to
evidence such attornment. The Tenant shall, upon demand of the Mortgagee or any
Receiver or purchaser at the foreclosure sale, pay to the Mortgagee or to such
Receiver or purchaser, as the case may be, all rental monies then due or as they
thereafter become due.

       FOURTH: Upon the attornment provided for in preceding Paragraph THIRD the
Tenant's occupancy shall thereafter be in full force and effect as under a
direct Lease between Mortgagee, the Receiver or the purchaser at the foreclosure
sale, as the case may be, and Tenant. It is specifically understood and agreed
that Mortgagee or any such Receiver or purchaser shall not be:

      (a)   liable for any act, omission, negligence or default of any prior
            landlord, or

      (b)   subject to any offsets, claims or defenses which Tenant might have
            against any prior landlord; or

      (c)   bound by any rent or additional rent which Tenant might have paid
            for more than one month in advance to any prior landlord; or

      (d)   bound by any amendment or modification of the Lease made without
            the prior written consent of the Mortgagee.

      FIFTH: On and after the date Tenant in good standing attorns to Mortgagee
or any Receiver or subsequent owner in pursuance of its agreement herein set
forth, Mortgagee, the Receiver or such subsequent owner will undertake and
perform all subsequent obligations of the Landlord as set forth in the Lease for
the benefit of and undisturbed occupancy of Tenant under the Lease.

      SIXTH: Tenant agrees it will not amend, modify nor abridge the Lease in
any way, nor cancel or surrender the same without prior written approval of the
Mortgagee other than by reason of a continued uncured material default of the
landlord under the Lease, nor will the Lease ever merge into the fee in the
event that Mortgagee acquires fee title to the Mortgaged Premises.

      SEVENTH: Any notices or other communication to be given hereunder by
either party shall be in writing and shall be deemed to have been sufficiently
given or served for all purposes if sent by registered or certified mail with
return receipt requested to the other party hereto at its address above stated
or such other address of which written notification has been timely given to the
other party.

      EIGHTH: Mortgagee has and shall have the continuing right to execute and
record in the Land Records of Gwinnett County, Georgia at any time, in its
unilateral discretion, a Declaration of Subordination for the purpose of thereby
subordinating its rights, title and interest in and under the Mortgage to the
rights, title and interest of Tenant under the Lease. Such Declaration of
Subordination shall, at Mortgagee's election, operate, function and be in full
force and effect for whatever period of time Mortgagee declares therein that it
shall be in force not exceeding the term of the Lease and any extensions thereof
and the said Declaration may be voided unilaterally by Mortgagee when it so
elects.

      NINTH: Tenant waives any and all rights it may have to execute and record
after the date hereof any document purporting to again or further subordinate
its right, title or interest under the Lease to the lien of either the Mortgage
or any other mortgage or deed of trust or any ground lease or any agreement
modifying or amending the Mortgage except with the written consent of Mortgagee.

      TENTH: This Agreement cannot be changed orally but only in writing signed
by both parties hereto.

      ELEVENTH: This Agreement may be recorded by either party at its own
expense in the Land Records of Gwinnett County, Georgia whenever, in its sole
discretion, either party elects so to do.

                                       2
<PAGE>

      TWELFTH: All of the terms, covenants and conditions hereof shall run with
the Mortgaged Premises and shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and assigns.

      IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed, acknowledged and delivered the day and year first above written.

SIGNED, SEALED AND DELIVERED              TENANT:
in the presence of:

_____________________________

_____________________________              BY:_____________________________

                                           MORTGAGEE:

_____________________________              BY:_____________________________

_____________________________

       The undersigned Owner of the leased and mortgaged premises hereby
consents to the foregoing Agreement and agrees to be bound by and subject to the
terms thereof.

                                           BY:_____________________________

                                        3
<PAGE>

                                   EXHIBIT "E"

                              SPECIAL STIPULATIONS

                                      NONE

<PAGE>

                                   EXHIBIT "F"

                            CONSTRUCTION REQUIREMENTS

INSURANCE: Contractor/Subcontractor shall maintain at least the following
insurance coverages in addition to any other coverages or any greater limits
required by the Contract Documents. The policies shall also provide that it
shall not be canceled or altered without twenty (20) days prior written notice
to Tenant.

1.    Type of Insurance - Worker's Compensation and Employer's Liability.
      Minimum Limits of Liability - In accordance with the laws of the state or
      states in which the work is performed, but with employers' liability
      limits of at least $100,000.00 per occurrence.

2.    Type of Insurance - Comprehensive General Liability. Minimum Limits of
      Liability - Bodily Injury (and death): $1,000,000.00 each occurrence;
      $1,000.000.00 aggregate.* Property Damage; $1,000,000.00 each occurrence;
      $1,000,000.00 aggregate.* Or Bodily Injury and Property Damage combined:
      $1,000,000.0O.

3.    Type of Insurance - Comprehensive Automobile Liability. Minimum Limits of
      Liability-Bodily Injury (and Death): $500,000.00 each person; $500.000.00
      each occurrence. Property Damage: $100,000.00 each occurrence. Or, Bodily
      Injury and Property Damage combined: $500,000.00.

If checked, the above insurance policies shall provide coverage against the
following risks:

COMPREHENSIVE GENERAL LIABILITY:
-------------------------------
[X]    a.    Broad Form Property Damage.
[X]    b.    Independent Contractors
[X]    c.    XCU Hazards (explosions, collapse and underground damage)
[X]    d.    Contractual liability (arising from indemnity agreement in
             Subcontract).
[X]    e.    Completed Operations (for 24 months following completion of Work).

COMPREHENSIVE AUTOMOBILE LIABILITY:
----------------------------------
[X]    a.    All owned vehicles
[X]    b.    Non-ownership Liability
[X]    c.    Hired vehicles

Evidence of insurance coverages shall be furnished in duplicate on a Standard
ACORD Form, Certificate of Insurance, or on the attached Certificate of
Insurance form, naming Contractor as "Addressee", unless a different form is
required by Contract Documents.

<PAGE>

Contractor's/Subcontractor's Certificate of Insurance This certificate is
issued as a matter of information only and confers no rights upon the
certificate holder. This certificate does not amend, extend or alter the
coverage afforded by the policies listed below

--------------------------------------------------------------------------------
NAME & ADDRESS OF AGENCY         COMPANIES AFFORDING COVERAGE
--------------------------------------------------------------------------------
___________________________      COMPANY
___________________________      LETTER      A
PHONE NO, (_______)              COMPANY
                                 LETTER      B
--------------------------------------------------------------------------------
NAME & ADDRESS OF INSURED        COMPANY
                                 LETTER      C
--------------------------------------------------------------------------------
___________________________      COMPANY
                                 LETTER      D
___________________________      COMPANY
                                 COMPANY
                                 LETTER      E
PHONE NO. (______)
--------------------------------------------------------------------------------

       THIS IS TO CERTIFY THAT POLICIES OF INSURAJCE USTED BELOW HAVE BEEN
ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY period INDICATED, NOT
WITHSTANDING ALLY REQUIREMENT, TERMOR CONDITIONS OP ANY CONtRACT OR OTHER
DOCIMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OP MAY PERTAIN:
THE INSURanCE AFFORdED BY THE POLICES DESCRIBED HEREIN IS SUBJECT TO ALL TILE
TERMS,

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------
                                           POLICY          POLICY         LIMITS OF LIABILITY
CO.       TYPE OF INSURANCE    POLICY   EFFECTIVE DATE   EXPERATION          IN THOUSANDS
LTR.                           NUMBER                       DATE             (000 OMITTED)
---------------------------------------------------------------------------------------------------------------------------
      <S>                                                             <C>                                       <C>
      General Liability                                               General Aggregate-BVPD                    $1,000
      Commercial General Liability                                    Personal & Advertising Injury             $1,000
                                                                      Each Occurrence                           $1,000
      [_] Occurrence (required)                                       Fire Damage (My One Fire)                 $   50
        Any exclusion to the basic form to                            Medical Expense (My One Person)           $
        be noted below:
        _______________                                               The above are REOUIBED limits for
        _______________                                               each project.
        _______________
---------------------------------------------------------------------------------------------------------------------------
      Automobile Liability                                            Bodily Injury
      o Any Auto                                                      and Property
      0 All Owned Autos                                               Damage                 $ 500
      o Scheduled Autos                                               Combined              (REQUIRED)
      0 Hired Autos
      0 Non-Owned Autos                                               Bodily Injury
                                                                      Each Person)          $
                                                                      Bodily Injury
                                                                      (Each                 $
                                                                      Occurrence)
---------------------------------------------------------------------------------------------------------------------------
      Excess Liability                                                Property Damage       $
      [_] Umbrella Form
      [_] Other Than Umbrella
          Form
---------------------------------------------------------------------------------------------------------------------------
      Workers Compensation                                            Bodily Injury and     Ea. Occurrence      Aggregate
      AND                                                             Properly Damage
      Employers Liability                                             Combined              $                   $
---------------------------------------------------------------------------------------------------------------------------
      OTHER                                                                               STATUTORY
                                                                                 $100 (Required) Each Accident
                                                                                 $500 (Required) Disease/Polic Limit
                                                                                 $100 (Required) Disease/Each Employee
---------------------------------------------------------------------------------------------------------------------------
Description of operations, locations, vehicles, restrictions,         Amount sufficient to cover difference in limits when
special items to which this certiticate applies:                      compared to minimum coverage required.
Type of work to be performed by insured:                              Certificate Holder:  DUKE-WEEKS REALTY CORPORATION
                                                                      4497 Park Drive / Norcross GA 30093
---------------------------------------------------------------------------------------------------------------------------
CANCELLATION: The above poiloes have been endorsed to provide rwenty (20) days when notice of carcellation to the
certificate holder designated herein.
             [                                    ]
MAIL
TO  >        [                                    [       Date Issued:______________________________________

                                                          Authorized Representative:________________________
</TABLE>

<PAGE>
                                                              Project: "Project"

                  CONTRACTOR/SUBCONTRACTOR SAFETY REQUIREMENTS

CONTRACTOR/SUBCONTRACTOR:

All Contractors'/Subcontractors' personnel shall conform to the following safety
requirements while working on a Duke-Weeks Project. The following are not all
the rules required, but consists of those Duke-Weeks considers most important.
These requirements do not, in any way, relieve you of responsibility to carry
out Federal, State and Local safety rules and regulations which might be
required of you while performing your work on a Weeks construction project.

The Contractor/Subcontractor shall provide a written safety program to the
Duke-Weeks Project Manager prior to commencement of any work on the Subcontract.
This program shall address the safety orders applicable to the subcontracted
work.

The Duke-Weeks Project Managers and Superintendents may issue a "safety
violation notice for repeated or serious violations. The
Contractor/subcontractor shall correct the violation by the abatement date and
furnish Duke-Weeks, In writing, the results of his actions. If the
Contractor/Subcontractor has not corrected the violation by the abatement date,
Duke-Weeks may suspend that portion of work until such correction is made.

Any questions or comments you have regarding Duke-Week's policies and procedures
relative to safety should be directed to the Vice President, Philip W. Cobb.

The Contractor/Subcontractor shall be responsible for all citations issued by
Federal, State, and Local authorities or any outside inspection agencies.

1)    The Contractor/Subcontractor is responsible for requiring and providing
      the use of personal protective equipment for their employees.

2)    Approved hard hats shall be worn at all times while on the construction
      site. Hard hats shall be worn properly with the bill forward, unless the
      wearing of eye protection prevents this; as in the case of welders. The
      bill forward is designed for facial and eye protection from falling
      objects, dust, etc.

3)    Long hair shall be contained under hard hat or net if working where it may
      get tangled.

4)    Full length pants without excessive length or flare bottoms will be
      required. Shirts must cover the entire mid-section and the sleeves must
      cover the entire shoulder. Sleeveless shirts, tank-tops, net shirts,
      halter tops, etc. shall not be worn on the construction site.

5)    Serviceable pair of work shoes or boots, made of leather or similar
      material, shall be worn. Tennis shoes, sandals, and other similar shoes
      are not permitted.

6)    Gambling, fighting and/or horseplay shall not be tolerated.

7)    No employee shall possess, use, or be under the influence of drugs or
      alcohol while on the project.

8)    No firearms are to be brought on the construction site or Duke-Weeks
      property.

9)    Trash shall be disposed of properly in designated containers. Good
      housekeeping shall be maintained in all work areas.

10)   Glass containers (jars, soda bottles, etc.) shall not be brought on the
      site.

11)   The speed limit on the site is 10 mph. This speed limit shall not be
      exceeded. Drive slower on rough terrain and in congested areas,

12)   Safety meetings shall be held on a regular basis, Documentation of topic
      and atendees shall be maintained. Minutes of the meeting shall be
      forwarded to the job site office or project manager.

13)   Any employees exposed to hazardous conditions must be protected in
      accordance with OSHA regulations.

14)   No scaffold forms shall be erected, moved, dismantled, or altered except
      under the supervision of competent persons.

15)   All electrical tools, cords, appliances, etc., must comply with applicable
      OSHA and the National Electrical Code Standards.

16)   All equipment with an obstructed view to the rear must be equipped with an
      audible reverse signal alarm. Equipment must be maintained in safe
      operation condition.

17)   Fire prevention must Conform to OSHA and NFPA Standards. Approved safety
      cans shall be used for flammable and combustible liquids. "NO SMOKING NEAR
      OPEN FLAME" signs and fire extinguishers shall be provided where required.

18)   Hearing protection shall be worn where required.

<PAGE>

"Project"
CONTRACTOR/SUBCONTRACTOR SAFETY REQUIREMENTS
(continued)
Page 2

19)   Respiratory protection shall be established and implemented by
      Contractor/Subcontractors as required.

20)   All open holes, excavations, floor openings, etc., shall be properly
      covered or barricaded. It shall be the responsibility of the
      Contractor/Subcontractor to reinstall any barricade or open cover that
      must be removed to perform their work.

21)   Compressed gas cylinders shall be secured in an upright position at all
      times valve caps shall be in place when not in use, Cylinders shall be
      transported and stored in accordance with Federal and State Standards.

22)   Only vehicles approved by the Project Superintendent or Project Manager
      will be allowed on site.

23)   All ladders must be inspected prior to use. Defective ladders must be
      removed from service immediately. All ladders shall have firm footing, be
      made secure at the top and extend 36 inches above landing.

24)   No material shall be dropped outside the exterior wall of the building
      where the drop distance Is more that 20 feet high, unless contained in a
      chute enclosed on all sides. If the drop distance is more than 20 feet
      high, the landing area must be barricaded. Material may be dropped through
      openings in the building, but the opening must be protected with
      barricades at least 42 inches high and back 6 feet or more from the edge
      of each opening.

25)   All tools and equipment used by Contractor/Subcontractor shall comply with
      OSHA Standards while being used on Weeks sites.

26)   Any Contractor's/Subcontractors employees who are found to be in violation
      of these safety rules, or other company policies or procedures, are
      subject to being removed from the job site.

27)   The Contractor/Subcontractor is responsible for providing safe access to
      all of its work locations and maintaining a safe work area for its
      employees.

28)   It is the policy of Duke-Weeks to maintain a safe and secure place to work
      which requires the cooperation of all Contractors/Subcontractors'
      employees.

I acknowledge that I have read the above and agree to comply with the Duke-Weeks
Safety and Security policies and procedures.

                                                 Contractor/Subcontractor

                                               By:_____________________________

                                              Title____________________________

                                              Date:____________________________

<PAGE>

                                                              PROJECT:"Project"

                      Duke-Weeks Realty Limited Partnership

                           DISCIPLINARY ACTION PROGRAM

The purpose of this program is to establish a procedure for documented warnings
to persons employed on Duke-weeks Realty Limited Partnership projects.
Reprimands will be Issued to persons who are found to be in violation of
prescribed federal, state and Duke- Weeks Realty Limited Partnership safety
standards as well as any specific job site rules and regulations.

The limits of this procedure shall include any person who is employed by
Duke-weeks Realty Limited Partnership, Contractor/subcontractor personnel,
Manufacturers representatives, vendor representatives and visitors, if deemed
necessary by the Project Superintendent or Project Manager.

A reprimand may be issued to an individual when noncompliance with safety
standards and/or regulations is detected and is to be issued at the direction of
the Project Superintendent, Project Manager or other Management Personnel.

Safety violations are categorized into two classifications:

      1.    UNSAFE ACT. The act of performing in a manner that is in violation
            of the safety standards or regulations which could result in a
            serious injury or property damage.

      2.    UNSAFE CONDITIONS. The act of performing when subjected to a
            condition that is in violation of the safety standards or
            regulations which could result in a serious injury or property
            damage.

A reprimand may also be issued to an employee for failure to report an accident
or Injury in a timely manner.

If a reprimand Is issued to an employee or a Contractor/Subcontractor, a copy
shall be given to supervisory personnel within that company.

The following steps shall be taken when an individual is detected violating a
safety standard or regulation by Project Superintendent, Project Manager or
other Management Personnel.

      1.    Inform the individual at the time that a safety violation is evident
            the details of the violation and request immediate corrective action
            be taken to prevent recurrence.

      2.    Inform the individual that a safety reprimand may be issued.

      3.    If a reprimand is issued, inform the individual to come by the
            issuer's office and the issuer shall explain the reprimand in
            detail.

      4.    Request the violating individual to sign the reprimand and that they
            may write their comments on the reprimand if they so desire, If the
            person refuses to comment or sign the reprimand, the issuer shall
            note their refusal on the reprimand.

CONSTRUCTION DEPARTMENT

Vice President, Phil Cobb shall receive and maintain a log of all reprimands
related to safety.

JOB SITE

Shall maintain a copy of all reprimands in personnel or subcontract files.

                ACTION TAKEN AS RESULT OF REPRIMAND BEING ISSUED

1.    One (1) reprimand issued to an individual within a 12-month period will be
      considered a warning. However, one (1) may be sufficient for dismissal
      depending upon the seriousness of the violation and evaluation by the
      Project Superintendent, Project Manager and the vice President of
      Construction.

2.    Two (2) reprimands issued to an individual within a 12-month period will
      warrant a three (31 day lay off without pay. The second reprimand may also
      be sufficient for dismissal depending upon the seriousness of the
      violation and evaluation by the Project Superintendent, Project Manager
      and the vice President of Construction.

3.    Three (3) reprimands Issued to an individual within a 12-month period will
      result in termination for the violating individual. All safety related
      reprimands resulting in termination will be evaluated by the Project
      Superintendent, Project Manager and the Vice President of Construction.

This Disciplinary Action Program is very important to our Safety Program. All
employees must be made aware they are required to work in a safe manner at all
times while on a Duke-Weeks Realty Limited Partnership job site.

       CONTRACTOR/SUBCONTRACTOR

BY_________________________________________

TITLE______________________________________

Date:______________________________________

<PAGE>

                                   EXHIBIT "G"

                           Base Building Requirements

       As shown on the plans and specifications prepared by Randall Paulson
Architects, last revised August 6, 1999.

<PAGE>

                                   EXHIBIT "H"

                                  Warrant form

      Neither this Warrant nor the securities issuable upon exercise hereof have
been registered under the Securities Act of 1933, as amended (the "Securities
Act"), the securities laws of any state, or the securities laws of Canada or any
province thereof. Such securities may not be sold or otherwise disposed of
unless pursuant to a registered offering or by transfer exempt from registration
under the Securities Act and applicable state, Canadian and provincial
securities laws.

                              VISIBLE GENETICS INC.

                          Common Share Purchase Warrant

No. W-1

      This certifies that, for value received, _______________________ or its
registered assigns (the "holder"), upon due exercise of this Warrant, is
entitled to purchase from Visible Genetics Inc., a corporation organized under
the laws of the province of Ontario, Canada (the "Company"), at any time on or
after the third anniversary of the date hereof (the "Initial Exercise Date") and
before the close of business on the ninth anniversary of the date hereof (the
"Expiration Date"), all or any part of 10,000 fully paid and nonassessable
Common Shares, no par value, of the Company (the "Common Shares"), at a purchase
price of U.S. $___ per share (the "Initial Purchase Price"), the number of
Common Shares issuable upon exercise of this Warrant being subject to possible
adjustment as provided below.

      This Warrant is hereinafter called the "Warrant." The holder hereof and
all subsequent holders of this Warrant, shall be entitled to all rights and
benefits provided to the holder or holders hereof pursuant to the terms of this
Warrant.

      Section 1. Exercise of Warrant. The holder of this Warrant may, at any
time on or after the Initial Exercise Date and on or before the Expiration Date,
exercise this Warrant in whole at any time or in part from time to time for the
purchase of the Common Shares or other securities which such holder is then
entitled to purchase hereunder ("Warrant Securities") at the Purchase Price (as
hereinafter defined). In order to exercise this Warrant in whole or in part, the
holder hereof shall deliver to the Company (i) a written notice of such holder's
election to exercise this Warrant, which notice shall specify the number of
Common Shares to be purchased, (ii) payment of the aggregate purchase price of
the Common Shares being purchased by certified or bank cashier's check, and
(iii) this Warrant, provided that, if such Common Shares or other Warrant
Securities have not then been registered under the Securities Act of 1933, as
amended, or, if applicable, Canadian securities laws, the Company may require
that such holder furnish to the Company a written statement that such holder is
purchasing such Common Shares or other Warrant Securities for such holder's own
account for investment and not with a view to the distribution thereof, that
none of such shares will be offered or sold in violation of the provisions of
the Securities Act and applicable Canadian securities laws and as to such other
matters relating to the holder as the Company may reasonably request to permit
the issuance of such Common Shares or other Warrant Securities without
registration under the Securities Act and applicable Canadian securities laws.
Upon receipt thereof, the Company shall, as promptly as practicable, execute or
cause to be executed and deliver to such holder a certificate or certificates
representing the aggregate number of Common Shares (or if applicable, other
Warrant Securities) specified in said notice. The stock certificate or
certificates so delivered shall be registered in the name of such holder.

      No fractional Common Shares are to be issued upon the exercise of this
Warrant, but the Company shall pay a cash adjustment in respect of any fraction
of a share which would otherwise be issuable in an amount equal to the same
fraction of the market price per share of the Common Shares on the day of
exercise, as reasonably determined by the Company. If this Warrant shall

<PAGE>

have been exercised only in part, the Company shall, at the time of delivery of
said certificate or certificates, deliver to such holder a new Warrant
evidencing the rights of such holder to purchase the remaining Common Shares
called for by this Warrant, which new Warrant shall in all other respects be
identical with this Warrant, or, at the request of such holder, appropriate
notation may be made on this Warrant and same returned to such holder. The
Company shall pay all expenses, taxes and other charges payable in connection
with the preparation, execution and delivery of share certificates under this
Section, except that, if such share certificates are requested to be registered
in a name or names other than the name of the holder of this Warrant, funds
sufficient to pay all stock transfer taxes which shall be payable upon the
execution and delivery of such share certificates shall be paid by the holder
hereof at the time of delivering the notice of exercise mentioned above.

      The Company represents, warrants and agrees that all Common Shares
issuable upon any exercise of this Warrant in accordance with all of the terms
of this Warrant shall be validly authorized and issued, fully paid and
nonassessable.

      This Warrant shall not entitle the holder hereof to any of the rights of a
shareholder of the Company prior to exercise in the manner herein provided.

      Section 2. Transfer, Division and Combination. The Company shall keep at
its principal executive office a register for the registration and registration
of transfers of Warrants. The name and address of each holder of one or more
Warrants and each permitted transferee thereof shall be registered in such
register. Prior to due presentment for registration of transfer, the person in
whose name any Warrants shall be registered shall be deemed and treated as the
owner and holder thereof for all purposes hereof, and the Company shall not be
affected by any notice or knowledge to the contrary.

      Subject to the provisions of Section 3, upon surrender of any Warrant at
the principal executive office of the Company for registration of transfer or
exchange (and in the case of a surrender for registration of a permitted
transfer, duly endorsed or accompanied by a written instrument of transfer duly
executed by the registered holder of such Warrant or his attorney duly
authorized in writing and accompanied by the address for notices of each
transferee of such Warrant or part thereof), the Company shall execute and
deliver, at the Company's expense, one or more new Warrants (as requested by the
holder thereof) in exchange therefor, exercisable for an aggregate number of
Common Shares equal to the number of shares for which the surrendered Warrant is
exercisable and issued to such person or persons as such holder may request,
which Warrant or Warrants shall in all other respects be identical with this
Warrant.

      Upon receipt by the Company of evidence reasonably satisfactory to it of
the ownership of and the loss, theft, destruction or mutilation of any Warrant,
and (a) in the case of loss, theft or destruction, of indemnity reasonably
satisfactory to it, or (b) in the case of mutilation, upon surrender and
cancellation thereof, the Company shall execute and deliver, in lieu thereof, a
new Warrant identical in all respects to such lost, stolen, destroyed or
mutilated Warrant.

      Section 3. Compliance with Securities Act; Restrictions on Transfer. Each
Warrant issued in exchange for this Warrant and each certificate for Common
Shares (or other Warrant Securities) initially issued upon the exercise of this
Warrant and each certificate for Common Shares (or other Warrant Securities)
issued to subsequent transferees of any such certificate shall be stamped or
otherwise imprinted with legend in substantially the following form:

          THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT
          BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
          AMENDED (THE "SECURITIES ACT"), THE SECURITIES LAWS OF
          ANY STATE, OR THE SECURITIES LAWS OF CANADA OR ANY
          PROVINCE THEREOF. SUCH SECURITIES MAY NOT BE SOLD OR
          OTHERWISE DISPOSED OF UNLESS PURSUANT TO A REGISTERED
          OFFERING OR BY TRANSFER EXEMPT FROM REGISTRATION UNDER
          THE SECURITIES ACT AND APPLICABLE STATE, CANADIAN AND
          PROVINCIAL SECURITIES LAWS."

      Section 4. Anti-Dilution. As used herein:

<PAGE>

            (i)"Purchase Price" at any time shall mean the price per share of
      Common Shares of the Company at which this Warrant shall then be
      exercisable (including the Initial Purchase Price) in accordance with the
      provisions hereof.

            (ii) "Shares" means, collectively, Common Shares (A) issued or
      issuable upon exercise of the Warrants and (B) exchanged for, or
      distributed, issued or issuable with respect to, the shares included in
      clause (A) of this definition. In case by reason of the operation of this
      Section 4 this Warrant shall be exercisable for any other shares of stock
      or other securities or property of the Company or of any other
      corporation, any reference herein to the exercise of this Warrant shall be
      deemed to refer to and include the exercise of this Warrant for such other
      shares of stock or other securities or property.

      The Purchase Price and the number of Common Shares and the number or
amount of any other securities and property as hereinafter provided for which
this Warrant may be exercisable shall be subject to adjustment from time to time
effective upon each occurrence of any of the following events.

      (a) If the Company shall declare or pay any dividend with respect to its
Common Shares payable in Common Shares, subdivide the outstanding Common Shares
into a greater number of Common Shares, or reduce the number of Common Shares
outstanding (by stock split, reverse stock split, reclassification or otherwise
than by repurchase of its Common Shares) (any of such events being hereinafter
called a "Stock Split"), the Purchase Price and number of Common Shares issuable
upon exercise of this Warrant shall be appropriately adjusted so as to entitle
the holder hereof to receive upon exercise of this Warrant, for the same
aggregate consideration provided herein, the same number of Common Shares (plus
cash in lieu of fractional shares) as the holder would have received as a result
of such Stock Split had such holder exercised this Warrant in full immediately
prior to such Stock Split.

      (b) If the Company shall merge or consolidate with or into one or more
corporations partnerships and the Company is the sole surviving corporation, or
the Company shall adopt a plan of recapitalization or reorganization in which
Common Shares are exchanged for or changed into another class of stock or other
security or property of the Company, the holder of this Warrant shall, for the
same aggregate consideration provided herein, be entitled upon exercise of this
Warrant to receive in lieu of the number of Common Shares as to which this
Warrant would otherwise be exercisable, the number of Common Shares or other
securities (plus cash in lieu of fractional shares) or property to which such
holder would have been entitled pursuant to the terms of the agreement or plan
of merger, consolidation, recapitalization or reorganization had such holder
exercised this Warrant in full immediately prior to such merger, consolidation,
recapitalization or reorganization.

      (c) If the Company is merged or consolidated with or into one or more
corporations or other entities under circumstances in which the Company is not
the sole surviving corporation, or if the Company sells or otherwise disposes of
substantially all its assets, and in connection with any such merger,
consolidation or sale the holders of Common Shares receive stock or other
securities convertible into equity of the surviving or acquiring corporations or
entities, or other securities or property after the effective date of such
merger, consolidation or sale, as the case may be, the holder of this Warrant
shall, for the same aggregate consideration provided herein, be entitled upon
exercise of this Warrant to receive, in lieu of Common Shares as to which this
Warrant would otherwise be exercisable, shares of such stock or other securities
(plus cash in lieu of fractional shares) or property as the holder of this
Warrant would have received pursuant to the terms of the merger, consolidation
or sale had such holder exercised this Warrant in full immediately prior to such
merger, consolidation or sale. In the event of any consolidation, merger or sale
as described in this Section 4(d), provision shall be made in connection
therewith for the surviving or acquiring corporations or other entities to
assume all obligations and duties of the Company hereunder or to issue
substitute warrants in lieu of this Warrant with all such changes and
adjustments in the number or kind of shares of stock or securities or property
thereafter subject to this Warrant or in the Purchase Price as shall be required
in connection with this Section 4(c).

      (d) If the Company shall declare or pay any dividend, or make any
distribution, with respect to its Common Shares that is payable in preferred
stock or other securities, assets (other

<PAGE>

than cash) or rights to subscribe for or purchase any security of the Company
other than Common Shares, or that is payable in debt securities of the Company
convertible into Common Shares, preferred stock or other equity securities of
the Company, the holder hereof shall, for the same aggregate consideration
provided herein, be entitled to receive upon exercise of this Warrant in lieu of
the Common Shares as to which this Warrant would otherwise be exercisable, the
same amount of Common Shares, preferred stock and other securities, assets or
rights to subscribe for or purchase any security (plus cash in lieu of
fractional shares) as the holder would have received had the holder exercised
this Warrant in full immediately prior to any such dividend or distribution;
provided that no such adjustment shall be made pursuant to this Section 4(d) if
this Warrant is exercisable by the holder on or prior to the record date for
such dividend or distribution.

      (e) If the Company (other than in connection with a sale described in
Section 4(d)) proposes to liquidate and dissolve, the Company shall give notice
thereof as provided in Section 5(b) hereof and shall permit the holder of this
Warrant to exercise any unexercised portion hereof at any time within the 10 day
period following delivery of such notice, if such holder should elect to do so,
and participate as a stockholder of the Company in connection with such
dissolution.

      (f) Whenever any adjustment is made as provided in any provision of this
Section 4:

            (i) the Company shall compute the adjustments in accordance with
            this Section 4 and shall prepare a certificate signed by an officer
            of the Company setting forth the adjusted number of shares or other
            securities or property, as applicable, and showing in reasonable
            detail the facts upon which such adjustment is based, and such
            certificate shall forthwith be filed with the Company or its
            designee; and

            (ii) a notice setting forth the adjusted number of shares or other
            securities or property, as applicable, shall forthwith be required,
            and as soon as practicable after it is prepared, such notice shall
            be delivered by the Company to the holder of record of each Warrant.

      (g) If at any time, as a result of any adjustment made pursuant to this
Section 4, the holder of this Warrant shall become entitled, upon exercise
hereof, to receive any shares other than Common Shares or to receive any other
securities, the number of such other shares or securities so receivable upon
exercise of this Warrant shall be subject to adjustment from time to time in a
manner and on terms as nearly equivalent as practicable to the provisions
contained in this Section 4 with respect to the Common Shares.

      Section 5. Notices. Any notice or other document required or permitted to
be given or delivered to holders of Warrants and holders of Common Shares (or
other Warrant Securities) shall be in writing and sent (a) by telecopy if the
sender on the same day sends a confirming copy of such notice by a recognized
overnight delivery service (charges prepaid), or (b) by registered or certified
mail with return receipt requested (postage prepaid) or (c) by a recognized
overnight delivery service (with charges prepaid).

            (i) if to the Company, at 700 Bay Street, Toronto, Ontario MSG 1Z6,
      Attention: Chief Financial Officer, Telecopy No.: (416) 813-3250, or such
      other address as it shall have specified to the holders of Warrants in
      writing; or

            (ii) to a holder, at its address set forth below, or such other
      address as it shall have specified to the Company in writing.

Notices given under this Section 5 shall be deemed given only when actually
received.

      Section 6. Limitation of Liability. No provision hereof, in the absence of
affirmative action by the holder to purchase Common Shares, and no mere
enumeration herein of the rights or privileges of the holder hereof, shall give
rise to any liability of such holder for the Purchase Price or as a shareholder
of the Company, whether such liability is asserted by the Company or by
creditors of the Company.

<PAGE>

       Section 7. Amendment. This Warrant may not be amended, modified or
otherwise altered in any respect except by the written consent of the registered
holder of this Warrant and the Company.

       Section 8. Successors and Assigns. This Warrant shall be binding upon and
inure to the benefit of the Company and the holder of this Warrant and their
respective successors and permitted assigns.

       Section 9. Governing Law. This Warrant shall be governed by and construed
in accordance with the laws of the State of New York, without reference to the
conflicts of law principles thereof. The holder irrevocably submits to the
jurisdiction of any court of the State of New York or the United State District
Court for the Southern District of the State of New York for the purpose of any
suit, action, or other proceeding arising out of this Warrant. The holder
irrevocably and unconditionally waives and agrees not to plead, to the fullest
extent permitted by law, any objection that it may now or hereafter have to the
laying of venue or the convenience of the forum of any action or proceeding with
respect to this Warrant in any such courts.

       IN WITNESS WHEREOF, the Company has caused this Warrant to be signed in
its name by its duly authorized officers and accepted by the holder of this
Warrant this -- day of December, 1999.

Attest:                                  VISIBLE GENETICS INC.

By: ___________________________          By:_________________________________
Name:__________________________          Name:_______________________________
Title: Secretary                         Title: _____________________________

Holder:
Address for Notices:

_______________________________

_______________________________

_______________________________

<PAGE>

                                   ASSIGNMENT

                  TO BE EXECUTED BY THE REGISTERED HOLDER IF IT
                         DESIRES TO TRANSFER THE WARRANT

            FOR VALUE RECEIVED, _____________ hereby sells, assigns and
transfers unto __________________________________ the right to purchase
_________________ shares of stock ________ , evidenced by the within Warrant,
and does hereby irrevocably constitute and appoint _________ Attorney to
transfer the said Warrant on the books of the Company, with full power and
substitution.

                                    ____________________________________________
                                    Signature

                                    ____________________________________________

                                    ____________________________________________

                                     Address
Dated:_____________, 19___
In the presence of:

__________________________

                                     NOTICE

            The signature of the foregoing Assignment must correspond to the
name as written upon the face of the within Warrant in every particular, without
alteration or enlargement or any change whatsoever.

<PAGE>

                                SUBSCRIPTION FORM

                      TO BE EXECUTED BY THE REGISTERED HOLDER IF IT
                         DESIRES TO EXERCISE THE WARRANT

             The undersigned hereby exercises the right to purchase
_________shares of stock covered by this Warrant according to the conditions
thereof and herewith makes payment of the Purchase Price of such shares in full.

                                    ____________________________________________
                                    Signature

                                    ____________________________________________
                                    Name
                                    ____________________________________________

                                    ____________________________________________

Dated:____________, 19___.

<PAGE>

                                   EXHIBIT "I"

                         UNCONDITIONAL GUARANTY OF LEASE

      This Unconditional Guaranty of Lease is entered into as of the _____ day
of ,1999, by the undersigned, VISIBLE GENETICS, INC., ("Guarantor").

                                    RECITALS

      WHEREAS, VISIBLE GENETICS CORP., a(n) Pennsylvania corporation ("Tenant")
desires to enter into a certain Lease with DUKE-WEEKS REALTY LIMITED
PARTNERSHIP, a(n) Indiana limited partnership ("Landlord"), for certain space
described therein and more commonly known as 100 Crestridge Drive, Suwanee,
Georgia, (the "Lease"); and

      WHEREAS, Landlord is willing to enter into the Lease only if it receives a
guaranty of obligations thereunder from the undersigned upon the terms and
conditions set forth below; and

      WHEREAS, in order to induce Landlord to enter into the Lease, Guarantor is
willing and agrees to enter into this Unconditional Guaranty of Lease upon the
following terms and conditions; and

      WHEREAS, Guarantor is a shareholder of Tenant and will be benefited by the
Lease;

      NOW, THEREFORE, in consideration of the foregoing recitals and other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Guarantor agrees as follows:

      1. Within thirty days of Lease execution Guarantor agrees to issue to
Landlord, or its affiliate, a warrant to purchase 10,000 shares of common stock
of the Guarantor at a strike price equal to the closing price of the Guarantor's
common stock on the date of Lease execution, said warrant to be in the form
attached to the Lease as Exhibit "H". For the purposes of this section, the date
of Lease execution shall be the day on which Tenant has executed the Lease.

      2. Guarantor hereby becomes surety for and unconditionally guarantees (i)
the prompt payment of all rents, additional rents and other sums to be paid by
Tenant under the terms of the Lease; and (ii) the performance by Tenant of the
covenants, conditions and terms of the Lease (such payment and performance to be
referred to collectively as "Obligations"). In the event Tenant defaults in the
performance of the Obligations during the term of the Lease, Guarantor hereby
promises and agrees to pay to Landlord all rents and any arrearages thereof and
any other amounts that may be or become due and to fully satisfy all conditions
and covenants of the Lease to be kept and performed by Tenant.

      3. As conditions of liability pursuant to this Guaranty, Guarantor hereby
unconditionally waives (a) any notice of default by Tenant in the payment of
rent or any other amount or any other term, covenant or condition of the Lease;
(b) any requirement that Landlord exercise or exhaust its rights and remedies
against Tenant or against any person, firm or corporation prior to enforcing its
rights against Guarantor, and (c) any and all rights of reimbursement,
indemnity, subrogation or otherwise which, upon payment under this Guaranty,
Guarantor may have against Tenant.

      4. Landlord may, without notice to Guarantor, and Guarantor hereby
consents thereto, (a) modify or otherwise change or alter the terms and
conditions of the Lease; and (b) waive any of its rights under the Lease or
forbear to take steps to enforce the payment of rent or any other term or
condition of the Lease against Tenant.

<PAGE>

      5. Guarantor hereby agrees, upon the request of Landlord, to execute,
acknowledge and deliver to Landlord a statement in writing certifying, if this
be the fact, that this Guaranty of the referenced Lease is unmodified, in full
force and effect, and there are no defenses or offsets thereto; certifying that
the referenced Lease is unmodified, in full force and effect, and there are no
defenses or offsets to such Lease (or if modified, that the Lease is in full
force and effect as modified and that this Guaranty extends to and fully covers
such Lease, as modified); and certifying the dates to which Minimum Annual Rent,
Annual Rental Adjustment, if any, and any other additional rentals have been
paid.

      6. In the event Tenant fails during the term of this Lease to pay any
rent, additional rent or other payments when due or fails to comply with any
other term, covenant or condition of the Lease, Guarantor, upon demand of
Landlord, shall make such payments and perform such covenants as if they
constituted the direct and primary obligations of Guarantor; and such
obligations of Guarantor shall be due with attorneys' fees and all costs of
litigation and without relief from valuation or appraisement laws.

      7. The rights and obligations created by this Guaranty shall inure to the
benefit of and be binding upon the successors, assigns and legal representatives
of Guarantor and Landlord.

      8. Anything herein or in the Lease to the contrary notwithstanding,
Guarantor hereby acknowledges and agrees that any security deposit or other
credit in favor of the Tenant may be applied to cure any Tenant default or
offset any damages incurred by Landlord under the Lease, as Landlord determines
in its sole and absolute discretion, and Landlord shall not be obligated to
apply any such deposit or credit to any such default or damages before bringing
any action or pursuing any remedy available to Landlord against Guarantor.
Guarantor further acknowledges that its liability under this Guaranty shall not
be affected in any manner by such deposit or credit, or Landlord's application
thereof.

      IN WITNESS WHEREOF, Guarantor has executed this Unconditional Guaranty of
Lease as of the date set forth above.

                                      "GUARANTOR"

                                       VISIBLE GENETICS, INC.

                                       By:______________________________
                                       Name:____________________________
                                       Title:___________________________

                                                 (Corporate Seal)

                                       Address:_________________________
                                       _________________________________

                                       Tax Identification Number
                                       _____-_____-_____

<PAGE>

STATE OF_________ )
                  )SS:
COUNTY OF________ )

      Before me, a Notary Public in and for said County and State, personally
appeared _______ , by me known to be the ___________________ of Guarantor, a(n)
_________________________, who acknowledged the execution of the foregoing on
behalf of said ______________________

      WITNESS my hand and Notarial Seal this ______ day of _______________,
1999.

                                         __________________________________
                                         Notary Public

                                         __________________________________
                                         (Printed)

My County of Residence: _________________________

My Commission Expires: __________________________

<PAGE>

                                   COVER PAGE
       The capitalized terms in this Lease shall have the meanings ascribed to
them below, and each reference to such term in the Lease shall incorporate such
meaning therein as if fully set forth therein.

LANDLORD: DUKE-WEEKS REALTY LIMITED PARTNERSHIP, an Indiana limited partnership,
          with an office located at 4497 Park Drive, Norcross, Georgia 30093

TENANT: VISIBLE GENETICS CORP., a corporation duly organized and existing under
        the laws of the State of Pennsylvania.

LEASED
PREMISES    (a)   Address: 100 Crestridge Drive, Suwanee, Georgia

            (b)   Suite: N/A

            (c)   Rentable Area: 99,822 square feet

            (d)   Project: Horizon

TERM: Ten (10) years

COMMENCEMENT DATE:       February 15, 2000

TERMINATION DATE:        February 14, 2010

BASE RENT (FIRST YEAR):  $420,250.62

SECURITY DEPOSIT:        $210,125.34

GUARANTOR:               Visible Genetics, Inc.

TENANT'S AGENT:          Ben Bittan Realty

<PAGE>

                             VISIBLE GENETICS CORP.
                                 LEASE AGREEMENT
                                TABLE OF CONTENTS
SECTION                                                                     PAGE
-------                                                                     ----

 1 LEASED PREMISES ........................................................    1

 2 TERM ...................................................................    1

 3 RENTAL .................................................................    1

 4 DELAY IN DELIVERY ......................................................    2

 5 USE OF LEASED PREMISES .................................................    3

 6 UTILITIES ..............................................................    3

 7 ACCEPTANCE OF PREMISES .................................................    4

 8 ALTERATIONS, MECHANICS' LIENS ..........................................    4

 9 QUIET CONDUCT/QUIET ENJOYMENT ..........................................    4

10 FIRE INSURANCE, HAZARDS ................................................    4

11 INDEMNIFICATION

12 WAIVER OF CLAIMS .......................................................    5

13 REPAIRS ................................................................    6

14 SIGNS, LANDSCAPING .....................................................    6

15 ENTRY BY LANDLORD ......................................................    6

16 TAXES ..................................................................    7

17 INSURANCE ..............................................................    8

18 ABANDONMENT

19 DESTRUCTION ............................................................    9

20 ASSIGNMENT AND SUBLETTING ..............................................   10

21 INSOLVENCY OF TENANT ...................................................   10

22 BREACH BY TENANT .......................................................   10

23 ATTORNEYS' FEES/COLLECTION CHARGES .....................................   11

                                        3

<PAGE>

24 CONDEMNATION ...........................................................   11

25 NOTICES ................................................................   12

26 WAIVER .................................................................   12

27 EFFECT OF HOLDING OVER .................................................   12

28 SUBORDINATION ..........................................................   12

29 ESTOPPEL CERTIFICATE ...................................................   13

30 PARKING ................................................................   13

31 MORTGAGEE PROTECTION ...................................................   13

32 PROTECTIVE COVENANTS ...................................................   13

33 RELOCATION .............................................................   14

34 BROKERAGE COMMISSIONS ..................................................   14

MISCELLANEOUS PROVISIONS ..................................................   14

EXHIBITS:

EXHIBIT "A":       Site Plan
EXHIBIT "B":       Floor Plan of the Leased Premises
EXHIBIT "C":       Tenant's Acceptance of Premises
EXHIBIT "D":       Subordination, Non-disturbance and
                   Attoment Agreement
EXHIBIT "E":       Special Stipulations
EXHIBIT "F":       Construction Requirements
EXHIBIT "G":       Base Building Requirements
EXHIBIT "H":       Warrant form
EXHIBIT "I":       Guaranty

                                        4
<PAGE>

                         UNCONDITIONAL GUARANTY OF LEASE

      This Unconditional; Guaranty of Lease is entered into as of the 22nd day
of December, 1999, by the undersigned, VISIBLE GENETICS, INC., ("Guarantor").

                                    RECITALS

      WHEREAS, VISIBLE GENETICS CORP., a(n) Pennsylvania corporation ("Tenant")
desires to enter into a certain Lease with DUKE-WEEKS REALTY LIMITED
PARTNERSHIP, a(n) Indiana limited partnership ("Landlord"), for certain space
described therein and more commonly known as 100 Crestridge Drive, Suwanee,
Georgia, (the "Lease"); and

      WHEREAS, Landlord is willing to enter into the Lease only if it receives a
guaranty of obligations thereunder from the undersigned upon the terms and
conditions set forth below; and

      WHEREAS, in order to induce Landlord to enter into the Lease, Guarantor is
willing and agrees to enter into this Unconditional Guaranty of Lease upon the
following terms and conditions; and

      WHEREAS, Guarantor is a shareholder of Tenant and will be benefited by the
Lease;

      NOW, THEREFORE, in consideration of the foregoing recitals and other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Guarantor agrees as follows:

      1. Within thirty days of Lease execution Guarantor agrees to issue to
Landlord, or its affiliate, a warrant to purchase 10,000 shares of common stock
of the Guarantor at a strike price equal to the closing price of the Guarantor's
common stock on the date of Lease execution, said warrant to be in the form
attached to the Lease as Exhibit "H". For the purposes of this section, the date
of Lease execution shall be the day on which Tenant has executed the Lease.

      2. Guarantor hereby becomes surety for and unconditionally guarantees (i)
the prompt payment of all rents, additional rents and other sums to be paid by
Tenant under the terms of the Lease; and (ii) the performance by Tenant of the
covenants, conditions and terms of the Lease (such payment and performance to be
referred to collectively as "Obligations"). In the event Tenant defaults in the
performance of the Obligations during the term of the Lease, Guarantor hereby
promises and agrees to pay to Landlord all rents and any arrearages thereof and
any other amounts that may be or become due and to fully satisfy all conditions
and covenants of the Lease to be kept and performed by Tenant.

      3. As conditions of liability pursuant to this Guaranty, Guarantor hereby
unconditionally waives (a) any notice of default by Tenant in the payment of
rent or any other amount or any other term, covenant or condition of the Lease;
(b) any requirement that Landlord exercise or exhaust its rights and remedies
against Tenant or against any person, firm or corporation prior to enforcing its
rights against Guarantor, and (c) any and all rights of reimbursement,
indemnity, subrogation or otherwise which, upon payment under this Guaranty,
Guarantor may have against Tenant.

      4. Landlord may, without notice to Guarantor, and Guarantor hereby
consents thereto, (a) modify or otherwise change or alter the terms and
conditions of the Lease; and (b) waive any of its rights under the Lease or
forbear to take steps to enforce the payment of rent or any other term or
condition of the Lease against Tenant.

      5. Guarantor hereby agrees, upon the request of Landlord, to execute,
acknowledge and deliver to Landlord a statement in writing certifying, if this
be the fact, that this Guaranty of the referenced Lease is unmodified, in full
force and effect, and there are no defenses or offsets thereto; certifying that
the referenced Lease is unmodified, in full force and

<PAGE>

effect, and there are no defenses or offsets to such Lease (or if modified, that
the Lease is in full force and effect as modified and that this Guaranty extends
to and fully covers such Lease, as modified); and certifying the dates to which
Minimum Annual Rent, Annual Rental Adjustment, if any, and any other additional
rentals have been paid.

        6. In the event Tenant fails during the term of this Lease to pay any
rent, additional rent or other payments when due or fails to comply with any
other term, covenant or condition of the Lease, Guarantor, upon demand of
Landlord, shall make such payments and perform such covenants as if they
constituted the direct and primary obligations of Guarantor; and such
obligations of Guarantor shall be due with attorneys' fees and all costs of
litigation and without relief from valuation or appraisement laws.

        7. The rights and obligations created by this Guaranty shall inure to
the benefit of and be binding upon the successors, assigns and legal
representatives of Guarantor and Landlord.

        8. Anything herein or in the Lease to the contrary notwithstanding,
Guarantor hereby acknowledges and agrees that any security deposit or other
credit in favor of the Tenant may be applied to cure any Tenant default or
offset any damages incurred by Landlord under the Lease, as Landlord determines
in its sole and absolute discretion, and Landlord shall not be obligated to
apply any such deposit or credit to any such default or damages before bringing
any action or pursuing any remedy available to Landlord against Guarantor.
Guarantor further acknowledges that its liability under this Guaranty shall not
be affected in any manner by such deposit or credit, or Landlord's application
thereof.

       IN WITNESS WHEREOF, Guarantor has executed this Unconditional Guaranty of
Lease as of the date set forth above.

                                       "GUARANTOR"

                                       VISIBLE GENETICS, INC.

                                       By: /s/ Thomas J. Clarke
                                           -------------------------------------
                                       Name: Thomas J. Clarke
                                             -----------------------------------
                                       Title: Chief Financial Officer
                                              ----------------------------------
                                                 (Corporate Seal)

                                        Address:___700 Bay St._______________
                                                _Suite 1000, Toronto_________
                                                Ontario, Canada

                                       Tax Identification Number

                                       _____-_____-_____

<PAGE>

PROVINCE OF_ONTARIO____}
                       }SS.
COUNTY OF __YORK_______}

      Before me, a Notary Public in and for said County and Province of Ontario
personally appeared __Thomas J. Clark__, by me known to be the __C.F.O.__ of
Guarantor, a(n) __Company__, who acknowledged the execution of the foregoing on
 behalf of said __Company__.

WITNESS my hand and Notarial Seal this _22nd_ day of _December_, 1999.

                                                     /s/ M. Jason August
                                                     ---------------------------
                                                     Notary Public
                                                     M. Jason August
                                                     ---------------------------
                                                      (Printed)

My County of Residence:__York , Province of Ontario__

My Commission Expires:__no expiry__<PAGE>

                                                                   Exhibit 10.15

                                                                  100 Bay Street

                                  LuCLIFF PLACE

                                  OFFICE LEASE

                                      INDEX
ARTICLE   SECTION  ITEM                                                     PAGE
-------   -------  ----                                                     ----

1                  DEFINITIONS

          1.01     Additional Rent                                           1
          1.02     Basic Rent                                                1
          1.03     Building                                                  1
          1.04     Business Hours                                            1
          1.05     Common Areas                                              1
          1.06     Landlord's Taxes                                          2
          1.07     Leased Premises                                           2
          1.08     Office Section                                            2
          1.09     Operating Costs                                           2
          1.10     Proportionate Share                                       3
          1.11     Rent                                                      3
          1.12     Rentable Floor Area                                       3
          1.13     Service Areas                                             4
          1.14     Stipulated Rate of Interest                               4
          1.15     Taxes                                                     4
          1.16     Tenant's Taxes                                            4

2                  NET LEASE AND SECURITY DEPOSIT

          2.01     Net Lease                                                 5
          2.02     Security Deposit                                          5

3                  DEMISE AND TERM

          3.01     Demise and Term                                           5

4                  RENT

          4.01     Basic Rent                                                6
          4.02     Additional Rent                                           6
          4.03     Payment of Additional Rent                                6
          4.04     Accrual of Rent                                           7
          4.05     No Set-Off                                                7
          4.06     Additional Rent Treated as Rent                           7
          4.07     Rent Past Due                                             7

5                  OPERATING, CARETAKING,
                   AND ELECTRICITY COSTS

          5.01     Operating Costs                                           7
          5.02     Caretaking Costs                                          7
          5.03     Electricity Costs                                         8

6                  TAXES

          6.01     Payment of Tenant's Taxes                                 8
          6.02     Tenant's Proportionate Share
                   of Landlord's Taxes                                       8
          6.03     Payment of Landlord's Taxes -
                   Appeals                                                   8

                                     --------------
[INITIALS]  [INITIALS]  [INITIALS]   RUDERMAN, SHAW
                                     --------------
<PAGE>
                                     - 2 -

          6.04     Determination of Taxes                                    8
          6.05     Receipts                                                  8

7                  TENANT'S FURTHER COVENANTS

          7.01     Repair                                                    9
          7.02     State of Repair                                           9
          7.03     Notice of Accident, Defects, Etc.                         9
          7.04     Repair Where Tenant at Fault                              9
          7.05     Rules and Regulations                                     9
          7.06     Use of Premises                                          10
          7.07     Cancellation of Insurance                                10
          7.08     Observance of Law                                        10
          7.09     Waste and Nuisance                                       10
          7.10     Inflammable or Dangerous Substances                      10
          7.11     No Defacing                                              10
          7.12     Additional Services                                      11
          7.13     Entry By Landlord                                        11
          7.14     Indemnity                                                11
          7.15     Exhibiting Premises                                      11
          7.16     Alterations, Liens                                       11
          7.17     Supervision Cost                                         12
          7.18     Glass                                                    12
          7.19     Window Coverings                                         12
          7.20     Signs                                                    12
          7.21     Name of Building                                         12
          7.22     Keep Tidy                                                13

8                  LANDLORD COVENANT

          8.01     Quiet Enjoyment                                          13

9                  LANDLORD'S FURTHER COVENANTS

          9.01                                                              13
          9.02     Landlord's Repairs                                       13
          9.03     Heating                                                  14
          9.04     Air-Conditioning                                         14
          9.05     Elevator                                                 14
          9.06     Access                                                   14
          9.07     Washrooms                                                15
          9.08     Caretaking                                               15
          9.09     Maintenance of Common Areas                              15
          9.10     Lighting                                                 15
          9.11     Directory Board                                          15

10                 FIXTURES, INSURANCE

          10.01    Fixtures                                                 15
          10.02    Tenant's Insurance                                       16

11                 LICENSES, ASSIGNMENTS
                   AND SUBLETTINGS

          11.01    Licences, Etc.                                           16
          11.02    Assignments and Sublettings                              16
          11.03    Release of Tenant                                        18

                                     --------------
[INITIALS]  [INITIALS]  [INITIALS]   RUDERMAN, SHAW
                                     --------------
<PAGE>
                                     - 3 -

12                 DAMAGE AND DESTRUCTION

          12.01    Abatement and Termination                                18

13                 LOSS AND DAMAGE TO PROPERTY

          13.01                                                             19

14                 LIABILITIES

          14.01    Impossibility of Performance                             19
          14.02    Claims for Compensation                                  19

15                 TENANT'S DEFAULT

          15.01    Re-Entry                                                 20
          15.02    Landlord's Right to Perform                              20
          15.03    Bankruptcy, Etc.                                         20
          15.04    Vacated or Improperly Used                               21
          15.05    Distress                                                 21
          15.06    Right of Re-Entry to Relet                               21
          15.07    Remedies Cumulative                                      21
          15.08    Legal Expense                                            21

16                 NON-WAIVER, OVERHOLDING

          16.01    Non-Waiver                                               22
          16.02    Overholding                                              22

17                 SUBORDINATION, ACKNOWLEDGEMENT, ETC.

          17.01    Subordination                                            22
          17.02    Tenant's Acknowledgements                                22
          17.03    Registration                                             23

18                 MISCELLANEOUS

          18.01    Recovery of Adjustments                                  23
          18.02    Lease Entire Agreement                                   23
          18.03    Covenants, Severability                                  23
          18.04    Captions                                                 23
          18.05    Agency                                                   23
          18.06    Notice                                                   24
          18.07    Interpretation                                           24
          18.08    Binding, Enuring and Interpretation                      24

19                 ADDITIONAL
                   DEFINITIONS
                   AND AMENDMENTS TO STANDARD
                   LEASE FORM

20                 ADDITIONAL PROVISIONS

                                     --------------
[INITIALS]  [INITIALS]  [INITIALS]   RUDERMAN, SHAW
                                     --------------
<PAGE>

            THIS INDENTURE made the 31 day of March, 1992.

IN PURSUANCE OF THE SHORT FORMS OF LEASES ACT.

B E T W E E N:

                            LuCLIFF COMPANY LIMITED

                      (hereinafter called the "Landlord")

                                                    THE PARTY OF THE FIRST PART,

                                    - and -

                          VISIBLE GENETICS, INC.,
                          a corporation duly incorporated
                          under the laws of the
                          Province of Ontario

                          (hereinafter called the "Tenant")

                                                   THE PARTY OF THE SECOND PART.

            WHEREAS the Landlord has agreed to lease to the Tenant and the
Tenant has agreed to lease from the Landlord the hereinafter described premises
forming part of LuCliff Place, an integrated residential and commercial
development, located at the South West intersection of Bay and Gerrard Streets
in the City of Toronto, in the Municipality of Metropolitan Toronto;

                                    ARTICLE 1

                                  DEFINITIONS

            The parties hereto agree that when used in this Lease the following
words or expressions have the meaning hereinafter set forth:

Section 1.01 "Additional Rent" means any and all sums of money or charges
required to be paid by the Tenant under this Lease (except Basic Rent), whether
or not the same are designated "Additional Rent" or whether or not payable to
the Landlord or otherwise, and all such sums are payable in lawful money of
Canada without deduction, abatement, set-off or compensation whatsoever.
Additional Rent may be estimated by the Landlord from time to time and such
estimated amount is due and payable in equal monthly instalments in advance on
the same day as monthly instalments of Basic Rent.

Section 1.02 "Basic Rent" means the rent specified in Section 4.01 hereof.

Section 1.03 "Building" means the Office Section and the lobbies, corridors,
elevators and facilities serving same.

Section 1.04 "Business Hours" means the period from 8 a.m. to 6 p.m. on Monday
to Friday, inclusive, and 8 a.m. to 1 p.m. on Saturdays unless Saturday is a
holiday.

Section 1.05 "Common Areas" mean the common areas, facilities, utilities,
improvements, equipment and installations intended and designated from time to
time by the Landlord for the common use and enjoyment of all the tenants of the
Office Section of the Building, including their respective agents, invitees,
servants and employees in common with others entitled to the use or benefit
thereof in the manner and for the purposes permitted by this Lease, and includes
the pedestrian mall of the Building.

                                     --------------
[INITIALS]  [INITIALS]  [INITIALS]   RUDERMAN, SHAW
                                     --------------
<PAGE>
                                     - 2 -

Section 1.06 "Landlord's Taxes" shall mean the aggregate of all Taxes charged
against the Office Section or the Landlord in respect thereof including Common
Areas and parking facilities and the lands reasonably attributable to the Office
Section, plus all costs and expenses (including legal and other professional
fees and interest and penalties or deferred payments) incurred, in good faith,
by the Landlord, in contesting, resisting or appealing any of the foregoing, and
including any amounts imposed, assessed, levied or charged in substitution for
or in lieu of any such Taxes, but excluding such taxes as capital gains taxes,
corporate, income, profit or excess profit taxes to the extent such taxes are
not levied in lieu of any of the foregoing against the Office Section or the
Landlord in respect thereof and shall also include any and all taxes which may
in the future be levied in lieu of Taxes are herein defined. The Landlord shall
be entitled to adjust the Landlord's Taxes to an amount that would have been
paid had the Building been fully assessed in the year to which the taxes are
attributable as a fully occupied office building.

Section 1.07 "Leased Premises" means subject to the provisions of Section 3.01
below that portion of the Office Section of the Building as is outlined in
colour on the floor plan attached hereto as Schedule "A" forming a part hereof,
comprising the entire 10th and 11th floors, having a Rentable Floor Area of
approximately 13,752 square feet.

Section 1.08 "Office Section" means those portions of the Building comprising a
part of LuCliff Place intended by the Landlord to be leased for office purposes
and the Common Areas and facilities serving same.

Section 1.09 "Operating Costs" means the Landlord's cost of operating the
Building as a first-class office building which shall include all costs properly
attributable in accordance with generally accepted accounting practise
determined by the Landlord's auditors to the operation, maintenance and
management of the Building and the lands appurtenant thereto and shall, without
limiting the generality of the foregoing, include:

      (a)   all monies reasonably paid or incurred to persons, firms, companies
            or corporations employed in the maintenance, security and cleaning
            of the Building and the lands appurtenant thereto;

      (b)   all costs of repairs;

      (c)   the cost of running, maintaining and repairing the heating,
            ventilating and air-conditioning plants, distribution systems and
            associated equipment, including the cost of all fuel, gas and steam;

      (d)   elevator maintenance and operations costs;

      (e)   the cost of providing hot and cold water;

      (f)   the cost of providing electricity not otherwise payable by tenants
            which shall include without limitation the cost of electricity used
            in Common Areas and shall exclude the cost of electricity used in
            premises within the Building which are leased to other tenants.

      (g)   window cleaning costs;

      (h)   cost of all-risk, fire, extended perils, liability, boiler and
            rental insurance;

      (i)   telephone and other public utility costs;

      (j)   service contracts with independent contractors;

      (k)   cost of watchmen, reception staff and other on-site personnel,
            including salaries, wages and fringe benefits;

      (l)   remuneration paid at competitive rates to managing agents;

* See Section 5.03 regarding the Tenant's obligation to pay for electricity used
in the Leased Premises which is limited to the escalation of such cost over the
cost for the base year 1995 as described in said Section 5.03.

                                     --------------
[INITIALS]  [INITIALS]  [INITIALS]   RUDERMAN, SHAW
                                     --------------
<PAGE>
                                     - 3 -

      (m)   audit costs and accounting services including such costs incurred
            for the imposition and determination of charges in tenants;

      (n)   costs of legal fees on a solicitor and his own client basis;

      (o)   costs of capital improvements and other costs determined by the
            Landlord's auditor to be properly chargeable to the capital account
            to the extent that such capital improvements reduce or avoid
            Operating Costs;

      (p)   costs of capital improvements and other costs determined by the
            Landlord's auditor to be properly chargeable to replace or upgrade
            any fixtures, furnishing and equipment in the common areas,
            including the fixtures and equipment of and for the heating,
            ventilation and air conditioning system, such depreciation being
            calculated as may be designated by the Landlord's auditors and in
            accordance with generally accepted principles.

Operating Costs shall exclude debt service, depreciation except as mentioned
above and expenses properly chargeable to capital account except as mentioned
above. In the event any cost or expense is included as an integral part of an
expense applicable to a portion of LuCliff Place in addition to the Building or
is attributable to part of the Building used in common with tenants of the
retail or commercial portions, the Landlord acting reasonably shall make an
allocation of such cost or expense which is reasonably attributable to the
Building. In the event of any dispute by the Tenant as to the amount of such
costs and allocation, an opinion of the Landlord's auditors shall be final and
binding as to the amount and allocation for the period. The landlord and Tenant
acknowledge and agree that notwithstanding the foregoing definition of Operating
Costs the Tenant shall not be required to pay its Proportionate Share of
Operating Costs but only its Proportionate Share of Operating Costs Escalation
as that term is defined in paragraph 19.01 (a) in accordance with the provisions
of Article 4 and Section 5.01 of this Lease.

Section 1.10 "Proportionate Share" means the fraction which has as its numerator
the Rentable Floor Area of the Leased Premises and has as its denominator the
total Rentable Floor Area of the Building whether rented or not, subject only to
the adjustments which follow. The total Rentable Floor Area of the Building
shall be calculated as if the Building were entirely leased by tenants renting
whole floors. The Rentable Floor Area of the Leased Premises, if the Leased
Premises consists of or includes a part of a floor, shall be increased by the
fraction of the total area of the Service Areas (as hereinafter defined) if any,
on such floor, which has as it numerator the Rentable Floor Area contained in
the Leased Premises on such floor and has as its denominator the sum of the
Rentable Floor Areas of such floor. The lobby and entrances on the ground floor
and subsurface floors used in common by tenants and mechanical equipment areas
shall be excluded from the foregoing calculations. The calculation of the total
Rentable Floor Area of the Building whether rented or not shall be determined by
the Landlord's architect and shall be adjusted from time to time to give effect
to any structural or functional change affecting the same. The calculation of
the Rentable Floor Area of the Leased Premises shall be adjusted from time to
time to give effect to any change therein during the Term of the Lease.

Section 1.11 "Rent" means the Basic Rent and Additional Rent.

Section 1.12 "Rentable Floor Area"

      (i)         in the case of a whole floor of the Building shall include all
                  areas within the outside walls and shall be computed by
                  measuring to the insider surface of the glass outer building
                  walls without deduction for columns and projections necessary
                  to the Building and shall include Service Areas, but shall not
                  include stairs and elevator shafts supplied

                                     --------------
[INITIALS]  [INITIALS]  [INITIALS]   RUDERMAN, SHAW
                                     --------------
<PAGE>
                                     - 4 -

                  by the Landlord and flues, stacks, pipe shafts or vertical
                  ducts with their enclosing walls within the area occupied.

      (ii)        in the case of a part of a floor of the Building shall include
                  all areas occupied and shall be computed by measuring from the
                  inside surface of the glass outer building walls to the office
                  side of corridors or other permanent partitions and to the
                  centre of partitions which separate the area occupied from
                  adjoining rentable areas without deduction for columns and
                  projections necessary to the Building and shall include
                  Service Areas exclusively serving only the area occupied, plus
                  a proportionate share of the non-exclusive Service Areas
                  located on such floor, but shall not include stairs and
                  elevator shafts supplied by the Landlord and flues, stacks,
                  pipe shafts or verticle ducts with their enclosing walls
                  within the area occupied.

Section 1.13 "Service Areas" shall mean the area of corridors, elevator lobbies,
service elevator lobbies, toilets, air-conditioning rooms, fan rooms, janitor's
closets, telephone and electrical closets serving the Leased Premises in common
with other premises.

Section 1.14 "Stipulated Rate of Interest" means the prime rate of interest
charged from time to time by The Royal Bank of Canada at its head office in
Toronto to its most preferred borrowers, plus three percent (3%) per annum.

Section 1.15 "Taxes" shall mean all real property taxes, rates, duties, levies,
fees, charges, sewer levies, local improvement rates, and assessments whatsoever
imposed, assessed, levied or charged by any school, municipal, regional,
provincial, federal, parliamentary or other governmental body, corporation,
authority, agency or commission (including, without limitation, school boards
and utility commissions) and including all costs and expenses (including legal
and other professional fees and interest and penalties on deferred payments)
incurred by the Landlord in good faith in contesting, resisting or appealing any
of the foregoing, and including any amounts imposed, assessed, levied or charged
in substitution for or in lieu of any such taxes, rates, duties, levies, fees,
charges or assessments, but excluding such taxes as capital gains taxes,
corporate, income, profit or excess profit taxes to the extent such taxes are
not levied in lieu of any of the foregoing against the Building or the Landlord
in respect thereof and shall also include any and all taxes which may in the
future be levied in lieu of taxes as hereinbefore defined.

Section 1.16 "Tenant's Taxes" shall mean the aggregate of:

      (a)   all Taxes (whether imposed upon the Landlord or the Tenant)
            attributable to the personal property, trade fixtures, business,
            income, occupancy and/or turnover of the Tenant or any other
            occupant of the Leased Premises, and to any leasehold improvements
            or fixtures installed by or on behalf of the Tenant within the
            Leased Premises and to the use by the Tenant of any of the Common
            Areas; and,

      (b)   the amount by which Taxes (whether imposed upon the Landlord or the
            Tenant) are increased above the Taxes which would have otherwise
            been payable, which increase is as a result of the use of the Leased
            Premises or the Tenant or any other occupant of the Leased Premises
            being taxed or assessed in support of separate schools.

Please see Article 19 for further Definitions.

                                     --------------
[INITIALS]  [INITIALS]  [INITIALS]   RUDERMAN, SHAW
                                     --------------
<PAGE>
                                     - 5 -

                                   ARTICLE 2

                       NOT NET LEASE AND SECURITY DEPOSIT

Section 2.01 NOT NET LEASE

            The Landlord and Tenant acknowledge and agree that it is intended
that this Lease is not a net carefree lease to the Landlord, and the Tenant
shall not be required to contribute to the Landlord's cost of maintaining,
operating and managing the Building, including Taxes, utilities, caretaking,
insurance and maintenance, except as expressly provided for in this Lease.

Section 2.02 SECURITY DEPOSIT - DELETED

                                   ARTICLE 3

                                 DEMISE AND TERM

Section 3.01 DEMISE AND TERM - DELETED

Continued on 5A

                                     --------------
[INITIALS]  [INITIALS]  [INITIALS]   RUDERMAN, SHAW
                                     --------------
<PAGE>
                                     - 5A -

                                   ARTICLE 3

                                DEMISE AND TERM

Section 3.01 DEMISE AND TERM

            In consideration of the rents, covenants and agreements herein
contained on the part of the Tenant to be paid, observed and performed:

            (a)   the Landlord leases to the Tenant and the Tenant leases from
                  the Landlord that portion of the Leased Premises comprising
                  the entire 10th floor of the Building for and during the term
                  (hereinafter referred to as the "Term") of five (5) years
                  computed from the first day of June, 1995, and from
                  thenceforth next ensuing and fully to be completed and ended
                  on the 31st day of May, 2000, and

            (b)   the Landlord leases to the Tenant and the Tenant leases from
                  the Landlord that portion of the Leased Premises comprising
                  the entire 11th floor of the Building for and during the term
                  (hereinafter referred to as the "11th Floor Term") of four (4)
                  years and five (5) months computed from the first day of
                  January, 1996 and from thenceforth next ensuing and fully to
                  be completed and ended on the 31st day of May, 2000, subject
                  to the provisions for the advancement of the commencement date
                  of the 11th Floor Term set out in Section 3.02 below.

Until the commencement date of the 11th Floor Term the expression "Leased
Premises" shall mean and refer to the entire 10th floor of the Building, and
from and after the commencement date of the 11th Floor Term the expression
Leased Premises shall mean and refer to the entire 10th and 11th floors of the
Building. Notwithstanding that the 11th Floor Term shall commence later than the
Term the lease of the 10th floor of the Building and the lease of the 11th floor
of the Building shall for all purposes be considered a single lease, by the
Tenant, and in the event of any default by the Tenant whether before or after
the commencement date of the 11th Floor Term and whether in respect of the 10th
floor or the 11th floor of the Building, the Landlord shall be entitled to
exercise all of its rights and remedies hereunder or at law with respect to the
entire Leased Premises, being both the 10th floor and the 11th floor of the
Building.

Section 3.02 EARLY OCCUPANCY

      (a)   Following the execution of this Lease by both the Landlord and the
            Tenant the Tenant shall be entitled to occupy both the 10th floor of
            the Building and the 11th floor of the Building prior to the
            commencement date of the Term, but not less than one (1) business
            day's written notice to the Landlord, for the purposes of
            installation of its trade fixtures, furniture, equipment, and
            telephone and computer cabling. The Tenant shall be bound by all of
            the terms, conditions, covenants and provisos of this Lease during
            any such period of occupation prior to the commencement date of the
            Term, and with respect to the 11th Floor of the Building prior to
            the commencement date of the 11th Floor Term, save and except that
            during such period or periods the Tenant shall not be required to
            pay (subject to subparagraph (b) below) any Basic Rent or Additional
            Rent. The Tenant shall be required to pay Tenant's Taxes and to pay
            for any Additional Services during any such period of early
            occupancy;

                                     --------------
[INITIALS]  [INITIALS]  [INITIALS]   RUDERMAN, SHAW
                                     --------------
<PAGE>
                                     - 5B -

      (b)   If the Tenant occupies any portion of the 11th floor of the Building
            for the purposes of carrying on business prior to January 1st, 1996,
            the commencement date of the 11th Floor Term shall be advanced to
            the date that the Tenant first so occupies a portion of the 11th
            floor of the Building for the purposes of carrying on its business,
            and the twelve (12) month Basic Rent free period described in
            Section 4.01 hereof shall commence on the same date, but the
            expiration date of the 11th Floor Term shall remain May 31, 2000.

            The commencement date of the Term and the Basic Rent free period for
            the 10th floor shall not be advanced if the Tenant carries on
            business on the 10th Floor of the Building prior to the commencement
            date of the Term.

                                     --------------
[INITIALS]  [INITIALS]  [INITIALS]   RUDERMAN, SHAW
                                     --------------
<PAGE>
                                     - 6 -

                                   ARTICLE 4

                                      RENT

Section 4.01 BASIC RENT - Continued on 6A

            The Tenant shall pay yearly and every year during the Term to the
Landlord, without any deduction, abatement, set-off or diminution whatsoever, a
Basic Rent.

Section 4.02 ADDITIONAL RENT

            The Tenant shall pay to the Landlord, yearly and every year during
the Term, as additional rent ("Additional Rent"):

      (a)   the amount of any Taxes payable by the Tenant to the Landlord
            pursuant to Article 6 hereof; plus

      (b)   the amount of any payments required to be made by the Landlord on
            account of the cost of utilities supplied to the Leased Premises,
            together with the cost of lamp and bulb replacements, in accordance
            with the provisions of Section 5.03 hereof; plus

      (c)   The tenant's Proportionate Share of the Operating Costs Escalation
            in accordance with Section 5.01, including, without limitation, the
            cost of providing caretaking and cleaning services to the Leased
            Premises in accordance with the provisions of Section 5.02 hereof;
            plus

      (d)   the cost of Additional Services in accordance with the provisions of
            Section 7.12 hereof.

Section 4.03 PAYMENT OF ADDITIONAL RENT

            The Additional Rent specified in Section 4.02 hereof, shall be paid
and adjusted with reference to a period of twelve (12) calendar months. The
Landlord shall have the options from time to time to select a different fiscal
period of twelve months or broken portion thereof by notice to the Tenant. After
the commencement of the Term, the Landlord shall advise the Tenant, in writing,
of its estimate of the Additional Rent to be payable by the Tenant for the
period which commenced upon the commencement date of the Term until the end of
the respective calendar year, and the 90 days after the commencement of each
succeeding calendar period (which commences during the Term) the landlord shall
advise the Tenant in writing of its estimate for the Additional Rent to be
incurred in such period or broken portion thereof. Such estimate shall in every
case by a reasonable estimate and based wherever possible upon previous
operating expenses and, if required by the Tenant, shall be accompanied by
reasonable particulars of the manner on which it was arrived at. The Additional
Rent payable by the Tenant shall be paid in equal monthly instalments in advance
of the first day of each and every month during the Term based on the Landlord's
estimate as aforesaid. From time to time the Landlord may re-estimate on a
reasonable basis, the amount of Additional Rent for any calendar year or broken
portion thereof, in which case the Landlord shall advise the Tenant in writing
of such re-estimate and fix new equal monthly instalments for the remaining
balance of such calendar year or broken portion thereof such that, after giving
credit for the instalment paid by the Tenant on the basis on the previous
estimate or estimates, all the Additional Rent will have been paid during such
calendar year or broken portion thereof. Within ninety (90) days after the end
of each of the Landlord's fiscal period or broken period thereof (or with
respect to any component of Additional Rent which cannot be computed within such
ninety (90) day period, within thirty (30) days after the Landlord shall have
received the information necessary to compute such component of Additional
Rent), the Landlord shall submit to the Tenant a detailed statement of actual
additional rent payable and a calculation of the amounts by which the Additional
Rent

                                     --------------
[INITIALS]  [INITIALS]  [INITIALS]   RUDERMAN, SHAW
                                     --------------
<PAGE>
                                     - 6A -

Section 4.01 BASIC RENT, BASIC RENT FREE PERIOD continued

      .......subject to the Basic Rent free period described in subparagraph (b)
below Basic Rent of:

      (i)   from the commencement date of the Term until the commencement date
            of the 11th Floor Term the annual sum of ONE HUNDRED AND SIXTEEN
            THOUSAND EIGHT HUNDRED NINETY-TWO DOLLARS ($116,892.00) of lawful
            money of Canada payable in equal monthly instalments of NINE
            THOUSAND SEVEN HUNDRED FORTY-ONE DOLLARS ($9,741.00) each in advance
            on the first day of each and every month during the said period; and

      (ii)  from and after the commencement date of the 11th Floor Term until
            the expiration of the Term the annual sum of TWO HUNDRED AND
            THIRTY-TREE THOUSAND SEVEN HUNDRED EIGHTY-FOUR DOLLARS ($233,784.00)
            of lawful money of Canada payable in equal monthly instalments of
            NINETEEN THOUSAND FOUR HUNDRED AND EIGHTY-TWO DOLLARS ($19,482.00)
            each in advance on the first day of each and every month during the
            said period.

Such payments of Basic Rent to be made by the cheque or money order payable to
the Landlord at 700 Bay Street, Toronto, Ontario or as the Landlord may direct
from time to time.

            It is acknowledged and agreed that the Basic Rent is based on an
annual rental of SEVENTEEN DOLLARS ($17.00) per square foot of Rentable Floor
Area of the Leased Premises. The Landlord shall provide the Tenant with an
architect's certificate of measurement setting out the Rentable Floor Area of
the Leased Premises which shall be determined by the Landlord's Architect acting
reasonably, in accordance with the Building Owners and Managers Association
definition of rentable area of office premises. The Landlord's Architect's
Certificate as to the Rentable Floor Area of the Leased Premises shall be
conclusive and binding upon the parties hereto. If the certificate of
measurement prepared by the architect reveals that the number of square feet of
Rentable Floor Area of the Leased Premises is greater or less than Six Thousand
Eight Hundred Seventy-Six (6,876) square feet with respect to the 10th floor of
the Building and Six Thousand Eight Hundred Seventy-Six (6,876) square feet with
respect to the 11th floor of the Building and Thirteen Thousand Seven Hundred
and Fifty-Two (13,752) square feet in the aggregate the Basic Rent payable
pursuant to this section shall not be the amount set out above, but shall be an
amount equal to SEVENTEEN DOLLARS ($17.00) times the number of square feet of
Rentable Floor Area of the 10th floor of the Building as set out in the said
architect's certificate for the period from and after the commencement date of
the Term until the commencement date of the 11th Floor Term, and shall be an
amount equal to SEVENTEEN DOLLARS ($17.00) times the number of square feet of
Rentable Floor Area of the 10th floor and the 11th floor of the Building as set
out in the said architect's certificate for the period from and after the
commencement date of the 11th Floor Term.

      (b) Notwithstanding the provisions of subparagraph 4.01(a) above the
Tenant shall not be required to pay any Basic Rent with respect to the 10th
floor of the Building for the first twelve (12) months of the Term, being the
period from and including June 1st, 1995 to May 31st, 1996, and the Tenant shall
not be required to pay any Basic Rent with respect to the 11th floor of the
Building during the first twelve (12) months following the commencement date of
the 11th Floor Term. The parties acknowledge and agree that the said Basic Rent
free period with respect to the 10th floor of the Building will probably expire
prior to the expiration of the said Basic Rent free period with respect to the
11th floor of the Building. In such case from June 1st, 1996 until the
expiration of the said Basic Rent free period with respect to the 11th floor of
the

                                     --------------
[INITIALS]  [INITIALS]  [INITIALS]   RUDERMAN, SHAW
                                     --------------
<PAGE>
                                     - 6B -

Building the Tenant will pay Basic Rent at the rental rate per square foot of
Rentable Floor Area described above with respect to the 10th floor of the
Building and upon the expiration of the said Basic Rent free period with respect
to the 11th floor of Building the Tenant shall pay the full Basic Rent based on
the Rentable Floor Area of the 10th floor and 11th floor of the Building as
described above. If the commencement date of the 11th Floor Term is not the
first day of a calendar month Basic Rent of the 11th floor of the Building at
the rate per square foot of Rentable Floor Area described above will be
pro-rated on a daily basis and Basic Rent for the broken part of the month in
which such Basic Rent free period expires will be paid on the day that is one
year after the commencement date of the 11th Floor Term.

                                     --------------
[INITIALS]  [INITIALS]  [INITIALS]   RUDERMAN, SHAW
                                     --------------
<PAGE>
                                     - 7 -

payable by the Tenant exceeds or falls short, as the case may be, of the
aggregate instalments paid by the Tenant on account of Additional Rent for the
calendar year.

            Within thirty (30) days after the receipt of such statement either
the Tenant shall pay to the Landlord any amount by which the amount found
payable by the Tenant with respect to such calendar year or broken portion
thereof, exceeds the aggregate of the monthly payments made by it on account
thereof during such calendar year or broken portion thereof or the Landlord
shall pay to the Tenant any amount by which the amount found payable as
aforesaid is less than the aggregate of such monthly payments. In the event of
any dispute by the Tenant of the amount of Additional Rent payable, an opinion
of the Landlord's auditors shall be conclusive as to the amount thereof for any
period to which such opinion relates.

Section 4.04 ACCRUAL OF RENT

            Rent shall be considered as accruing from day to day hereunder, and
where it becomes necessary to calculate such Rent for an irregular period of
less than one year or less than one calendar month, an appropriate apportionment
and adjustment shall be made, including an apportionment and adjustment of
Additional Rent. Where the calculation of Additional Rent cannot be made until
after the termination of this Lease, the obligation of the Tenant to pay such
Additional Rent shall survive the termination hereof, and such amount shall be
payable by the Tenant upon demand by the Landlord.

Section 4.05 NO SET-OFF

            The Tenant hereby expressly waives the benefits of Section 35 of the
Landlord and Tenant Act and any amendments thereto and any present of future Act
of the Province of Ontario permitting the Tenant to claim a set-off against Rent
for any case whatsoever.

Section 4.06 ADDITIONAL RENT TREATED AS RENT

            All Additional Rent shall be payable and recoverable as Rent, but in
the manner as herein provided, and the Landlord shall have all rights against
the Tenant for default in any such payment as in the case of arrears in Rent.

Section 4.07 RENT PAST DUE

            If the Tenant fails to pay, when the same is due and payable, any
Basic Rent, Additional Rent or other amounts payable by the Tenant under this
Lease, such unpaid amounts bear interest at an annual rate equal to the
Stipulated Rate of Interest.

                                   ARTICLE 5

                  OPERATING, CARETAKING, AND ELECTRICITY COSTS

Section 5.01 OPERATING COSTS

            The Tenant covenants to pay to the Landlord, as Additional Rent, its
Proportionate Share of Operating Costs. Escalation Payments shall be made in
accordance with the provisions of Section 4.02 and 4.03 hereof and Section 19.

Section 5.02 CARETAKING COSTS

            The Tenant acknowledges that the Landlord is permitted to include
the cost of providing caretaking and cleaning services mentioned in Section 9.08
and 9.09 of the Lease within the definition of "Operating Costs" contained in
Section 1.09 hereof. Provided, however, that if the Landlord is not providing
such caretaking and cleaning services for all premises leased to tenants of the
Building then the Landlord, acting reasonably, shall make an allocation of that
portion of such costs which is reasonably attributable to the Leased Premises
and, to the extent that the same are not including in Operating Costs, the
Tenant covenants to pay to the Landlord as additional rent the amount by which
the cost of providing caretaking and cleaning services to the Leased Premise
mentioned in Section 9.08 and 9.09 hereof exceeds the amount of such costs for
the calendar year 1995 reasonably attributable to the Leased Premises as
estimated by the Landlord acting reasonably. In the event of any dispute by the
Tenant of the amount

                                     --------------
[INITIALS]  [INITIALS]  [INITIALS]   RUDERMAN, SHAW
                                     --------------
<PAGE>

exceeds the amount that such costs would have been for the calendar year 1995 if
the 10th floor and 11th floor of the Building had been occupied by the Tenant
for the purposes of carrying on business for the entire calendar year 1995, as
reasonably estimated by the Landlord.

                                     - 8 -

of such costs, an opinion of the Landlord's auditors shall be conclusive as to
the amount thereof for any period to which such opinion relates. Payments shall
be made in accordance with the provisions of Section 4.02 and 4.03 hereof.
Payment shall be made in accordance with the provisions of Section 4.02 and 4.03
hereof.

Section 5.03 ELECTRICITY COSTS

            The Tenant covenants to pay to the Landlord as Additional Rent the
amount by which, the cost of electric current supplied to the Leased Premises,
but not including the cost of electric current included in Operating Costs, as
defined.* The Tenant further covenants to pay to the Landlord the total cost of
any replacement of electric light bulbs, tubes and ballasts in the Leased
Premises to replace those installed at the commencement of the Term. The
Landlord may adopt a system of re-lamping and re-ballasting periodically on a
group basis in accordance with good practise in this regard and the Tenant shall
pay the actual cost, including parts and labour. "For greater clarity the
Tenant's obligation to pay the escalation of the cost of supplying electric
current as set out in this Section 5.03 is limited to increases in the cost of
electric current supplied to the Leased Premises. The cost of electric current
supplied to Common Areas is included in the calculation of Operating Costs
pursuant to Section 1.09 (f) of this Lease, and pursuant to Section 5.01 above
the Tenant's obligation with respect to such Operating Costs is limited to
payment of its Proportionate Share of the Operating Costs Escalation."

                                   ARTICLE 6

                                     TAXES

Section 6.01 PAYMENT OF TENANT'S TAXES

            The Tenant covenants to pay all Tenant's Taxes, as and when the same
become due and payable. Where any Tenant's Taxes are payable by the Landlord to
the relevant taxing authorities, the Tenant covenants to pay the amount thereof
to the Landlord, as Additional Rent, within ten (10) day after written demand.

Section 6.02 TENANT'S PROPORTIONATE SHARE OF LANDLORD'S TAXES

            The Tenant covenants to pay to the Landlord, as Additional Rent the
Landlord's Taxes Escalation in each calendar year. Payments shall be made in
accordance with the provisions of Section 4.02 and 4.03 hereof.

Section 6.03 PAYMENT OF LANDLORD'S TAXES - APPEALS

            The Landlord covenants to pay all Landlord's Taxes, subject,
nevertheless, to the payments on account of Landlord's Taxes required to be made
by the Tenant elsewhere in this Lease. The Landlord may appeal any official
assessment or the amount of any Taxes or other taxes based on such assessment
and relating to the Building. In connection with any such appeal, the Landlord
may defer payment of any Taxes or other taxes, as the case may be, payable by it
under the provisions of this Section 6.03 to the extent permitted by law, and
the Tenant shall co-operate with the Landlord and provide the Landlord with all
relevant information reasonably required by the Landlord in connection with any
such appeal.

Section 6.04 DETERMINATION OF TAXES

            In the event that the Landlord is unable to obtain from the taxing
authorities any separate allocation of Landlord's Taxes, Tenant's Taxes,
assessment or Landlord's Taxes attributable to the Office Section and the land
attributable thereto, such allocation shall be made by the Landlord, acting
reasonably. In the event of any dispute as to the amount of such allocation, an
allocation made by a professional tax consultant appointed by the Landlord shall
be conclusive.

Section 6.05 RECEIPTS

            Whenever requested by the Landlord, the Tenant will deliver to it
receipts for payment of all the Tenant's Taxes and furnish such other
information in connection therewith as the Landlord may reasonably require.

                                     --------------
[INITIALS]  [INITIALS]  [INITIALS]   RUDERMAN, SHAW
                                     --------------
<PAGE>
                                     - 9 -

                                   ARTICLE 7

                           TENANT'S FURTHER COVENANTS

            THE TENANT FURTHER COVENANTS WITH THE LANDLORD as follows:

Section 7.01 REPAIR

            To keep in a good and reasonable state of repair, and consistent
with the general standards of first-class office buildings in Metropolitan
Toronto, but subject to Section 10.01 and with the exception of reasonable wear
and tear, the Leased Premises including all leasehold improvements and all trade
fixtures therein and all glass therein (excluding the glass portions of exterior
walls thereof) but with the exception of structural members or elements of the
Leased Premises and defects in construction performed or installations made by
the Landlord and insured damage therein.

Section 7.02 STATE OF REPAIR

            That the Landlord may enter and view the state of repair, and that
the tenant will repair according to notice in writing, and that the Tenant will
leave the Leased premises in a good and reasonable state of repair, subject
always to the exceptions referred to in Section 7.01.

Section 7.03 NOTICE OF ACCIDENT, DEFECTS, ETC.

            To give to the Landlord prompt written notice of any accident to or
defect in the plumbing, water pipes, heating and/or any air-conditioning
apparatus, electrical equipment, conduits or wires or other wires or of any
damage or injury to the Leased Premises or any part thereof howsoever caused;
provided that nothing herein shall be construed so as to require repairs to be
made by the Landlord except as expressly provided in this Lease.

Section 7.04 REPAIR WHERE TENANT AT FAULT

            If the Building including the Leased Premises, the glass portions of
exterior walls elevators, boilers, engines, pipes and other apparatus (or any of
them) used for the purpose of heating or air-conditioning the Building or
operating the elevators, or if the water pipes, drainage pipes, electric
lighting or other equipment is destroyed through negligence, carelessness or
misuse of the Tenant, his servants, agents, employees or anyone permitted by him
to be in the Building, or through him or them in any way stopping up or injuring
the heating apparatus, elevators, water pipes, drainage pipes or other equipment
or part of the Building, the expense of the necessary repairs, replacements or
alterations plus a 15% surcharge for administration costs shall be borne by the
Tenant who shall pay the same to the Landlord forthwith on demand.

Section 7.05 RULES AND REGULATIONS

            The Tenant and his employees and all persons visiting or doing
business with him on the Leased Premises shall be bound by and shall observe the
Rules and Regulations attached to this Lease. The Landlord shall have the right
at any time and from time to time to make or vary such reasonable Rules and
Regulations on Schedule "B" as may be desirable in the sole judgement of the
Landlord (but not inconsistent with the provisions of this Lease) for the
safety, care, cleanliness, operation and maintenance of the Building and
premises and accessories, and for the preservation of good order therein. The
Landlord may waive or vary such Rules and Regulations for any one or more
tenants without waiving or varying them for all. The Landlord shall not be
responsible to the Tenant for the non-observance of any such Rules and
Regulations by any other tenant. The Landlord agrees to notify the Tenant in
writing of any changes in Rules and Regulations.

                                     --------------
[INITIALS]  [INITIALS]  [INITIALS]   RUDERMAN, SHAW
                                     --------------
<PAGE>
                                     - 10 -

Section 7.06 USE OF PREMISES

            The Leased Premises shall be used only for business offices, a small
scale custom workshop, and research laboratory or for any other use permitted by
the applicable zoning by-laws and other legislation and which has the prior
written approval of the Landlord and the Tenant shall not carry on or permit to
be carried on therein any other trade or business, and the Tenant shall not do
or permit to be done or omitted upon the Leased Premises anything which shall
cause the rate of insurance upon the Building to be increased and if the rate of
insurance on the Building shall be increased by reason of the use made of the
Leased Premises or by reason of anything done or omitted or permitted to be done
or omitted by the Tenant or by anyone permitted by the Tenant to be upon the
Leased Premises, the Tenant shall on demand pay to the Landlord the amount of
such increase.

See Section 19.02(b) for further provisions regarding Use of Premises.

Section 7.07 CANCELLATION OF INSURANCE

            If any insurance policy upon the Building shall be about to be
cancelled by the insurer by reason of the use of the Leased Premises, the
Landlord shall give written notice of such proposed cancellation to the Tenant,
and the Tenant shall not later than five (5) days prior to the cancellation date
set forth in such notice, stop such use or otherwise arrange for reinstatement
of such policy, otherwise the Landlord may, in addition to all other rights it
may have, at its option terminate this Lease and upon such termination Rent
shall be apportioned and paid in full to the date of such termination, and the
Tenant shall deliver possession of the Leased Premises forthwith in a neat and
tidy condition to the Landlord, and the Landlord may re-enter and take
possession of same.

Section 7.08 OBSERVANCE OF LAW

            To comply with all provisions of law including without limitation,
federal and provincial legislative enactments, building by-laws, and any other
governmental or municipal regulations which relate to the partitioning,
equipment, operation and use of the Leased Premises, and to the making of any
repairs, replacements, alterations, additions, changes, substitutions or
improvements of or to the Leased Premises. And to comply with all police, fire
and sanitary regulations imposed by any federal, provincial or municipal
authorities or made by fire insurance underwriters, and to observe and obey all
governmental and municipal regulations and other requirements governing the
conduct of any business conducted in the Leased Premises.

Section 7.09 WASTE AND NUISANCE

            No to do or suffer any waste or damage, disfiguration or injury to
the Leased Premises or the fixtures and equipment thereof or permit or suffer
any overloading of the floors thereof; and not to place therein any safe, heavy
business machine or other heavy object without first obtaining the consent in
writing of the Landlord (not to be unreasonably withheld); and not to use or
permit to be used any part of the Leased Premises for any dangerous, noxious or
offensive trade or business and not to cause or permit any nuisance in, at or on
the Leased Premises.

Section 7.10 INFLAMMABLE OR DANGEROUS SUBSTANCES

            The Tenant covenants not to bring into or store in the Leased
Premises any inflammable liquid or dangerous or explosive materials.

Section 7.11 NO DEFACING

            The Tenant shall not drill, drill into, or in any way deface the
walls, ceilings, partitions, floors, wood, stone or ironwork within the Leased
Premises without the prior written consent of the Landlord, such consent not to
be unreasonably withheld. Boring, cutting or stringing of wires or pipes shall
not be done except with the prior written consent of the Landlord, and as it may
direct. In the event of any violation of the provisions hereof, the Landlord
may, in addition to any other remedies it may have hereunder, repair any

                                     --------------
[INITIALS]  [INITIALS]  [INITIALS]   RUDERMAN, SHAW
                                     --------------
<PAGE>
                                     - 11 -

damage and the Tenant shall pay the cost thereof plus an administrative charge
of fifteen percent (15%) of such cost, to the Landlord, forthwith upon demand,
as Additional Rent.

Section 7.12 ADDITIONAL SERVICES

            The cost of additional services provided to the Tenant shall be paid
to the Landlord upon the Tenant receiving invoices for such additional services.
Additional services means any service and/or supervision requested by the tenant
and supplied by the Landlord and not otherwise provided for as a service to
tenants generally the costs of which are included in Operating Costs under this
Lease. By way of example, additional services may include steam cleaning or
carpets, moving furniture and making repairs or alterations to the Tenant's
leasehold improvements. The amount charged to the Tenant for an additional
services shall include all direct costs incurred by or on behalf of the Landlord
in rendering the additional service plus fifteen (15%) of the aforementioned
costs to cover the Landlord's overhead.

Section 7.13 ENTRY BY LANDLORD

            To permit the Landlord, its servants or agents or contractors, to
enter upon the Leased Premises at any time and from time to time for the purpose
of inspecting and making repairs, alterations or improvements to the Leased
Premises or to the Building, or for the purpose of having access to the
utilities and services (which the Tenant agrees not to obstruct), and the Tenant
shall not be entitled to compensation for any inconvenience, nuisance or
discomfort occasioned thereby. The Landlord, its servants or agents may at any
time from time to time enter upon the Leased Premises to remove any article or
remedy any condition which in the opinion of the Landlord, reasonably arrived
at, would be likely to lead to cancellation of any policy of insurance as
referred to in Section 7.07 and such entry by the Landlord shall not be deemed
to be a re-entry. Provided that the Landlord shall proceed hereunder in such
manner as to minimize interference with the Tenant's use and enjoyment of the
Leased Premises.

Section 7.14 INDEMNITY

            To indemnify and save harmless the Landlord against and from any and
all claims, including without limiting the generality of the foregoing, all
claims for personal injury and property damage, arising from the conduct of any
work or by or through any act or omission of the Tenant or any assignee,
subtenant, agent, contractor, servant , employee, invitee or licensee of the
Tenant, and against and from all costs, counsel fees, expenses and liabilities
incurred in or about any such claim or any action or proceeding brought thereon.
This indemnity shall survive the expiry or sooner determination of this Lease.

Section 7.15 EXHIBITING PREMISES

            To permit the Landlord or its agents to exhibit the Leased Premises
to prospective tenants or other persons having written authority from the
Landlord or the agents of the Landlord to view the premises during normal
business hours of the last ten (10) months of the Terms. The Landlord shall have
the further right to enter upon the Leased Premises during the Term to exhibit
the Building to any prospective purchaser or mortgagee thereof.

Section 7.16 ALTERATIONS, LIENS

            Not to make or erect in or to the Leased Premises any installations,
alterations, additions or partitions without submitting drawings and
specifications to the Landlord and obtaining the Landlord's prior written
consent in each instance, which the Landlord shall not unreasonably withhold,
(and the Tenant must further obtain the Landlord's prior written consent to any
change or changes in such drawings and specifications submitted as aforesaid,
subject to payment of the cost to the Landlord of having its architects approve
of such changes, prior to proceeding with any work based on such drawings or
specifications); such work may be performed by contractors engaged by the Tenant
but in each case only under written contract approved in writing by the Landlord
and subject to all reasonable conditions

                                     --------------
[INITIALS]  [INITIALS]  [INITIALS]   RUDERMAN, SHAW
                                     --------------
<PAGE>
                                     - 12 -

which the Landlord may impose, provided nevertheless that the Landlord may at
its option require that the Landlord's contractors be engaged for any mechanical
or electrical work; without limiting the generality of the foregoing, any work
performed by or for the Tenant shall be performed by competent workmen whose
labour union affiliations are not incompatible with those of any workmen who may
be employed in the Building by the Landlord, its contractors or subcontractors;
the Tenant shall submit to the Landlord's reasonable supervision over
construction and promptly pay to the Landlord's or the Tenant's contractors, as
the case may be, when due, the cost of all such work and of all materials,
labour and services involved therein and of all decoration and all changes in
the Building, its equipment or services, necessitated thereby. The Tenant
covenants that he will not suffer or permit during the Term hereof any
Construction Lien for work, labour, services or materials, ordered by him or for
the cost of which he may be in any way obligated to attach to the Leased
Premises or to the Building and that whenever and so often as any such liens
shall attach or claims therefor shall be filed the Tenant shall within seven (7)
days after the Tenant has notice of the claim for lien procure the discharge
thereof by payment or by giving security or in such other manner as is or may be
required or permitted by law. And the Tenant further covenants that whenever and
so often as a certificate of action or Construction Lien is registered relating
to any of the liens referred to in the next preceding sentence, the Tenant shall
within seven (7) days after the Tenant has notice of the registration of such
certificate of action have the same vacated.

If the Tenant fails to discharge or vacate as aforesaid the Landlord may vacate
or discharge same, and any amounts paid by the Landlord in vacating or
discharging as aforesaid shall immediately become payable by the Tenant as Rent.

Section 7.17 SUPERVISION COST

            To pay the Landlord its actual costs paid to third parties for plan
and drawing review, granting of approvals, and supervision in connection with
any leasehold improvements or alterations carried out by or on behalf of the
Tenant including engineering and legal costs if any; Provided that no such costs
shall be payable by the Tenant in connection with its initial installation of
its leasehold improvements.

Section 7.18 GLASS

            To pay the cost of replacement of glass with as good quality and
size of any glass broken on the Leased Premises during the continuance of this
Lease, unless the Tenant can prove that such breakage is the result of an act of
the Landlord, its employees, servants, agents, contractors, licensees or
invitees.

Section 7.19 WINDOW COVERINGS

            To comply with the Landlord's scheme of uniform window covers for
the windows of the Building and not use any drapes or curtains except such as
have lining on the side thereof facing the interior surface of exterior windows
of a colour, shade and material approved by the Landlord.

Section 7.20 SIGNS

            Not to erect or maintain any sign, picture, advertisement, notice,
lettering, flag, decoration or direction upon any part of the outside walls of
the Building or in any common area of the Building or upon either the outside or
inside of the windows or doors of the Leased Premises except such as are
provided by the Landlord under the provisions of Section 9.12.

Section 7.21 NAME OF BUILDING

            Not to refer to the Building by any name other than that designated
from time to time by the Landlord nor to use such name for any purpose other
than the business address of the Tenant, and the Tenant may use the name of the
Building for the business address of the Tenant for no other purpose, provided
the Tenant may use the municipal number instead of the name of the Building.

                                     --------------
[INITIALS]  [INITIALS]  [INITIALS]   RUDERMAN, SHAW
                                     --------------
<PAGE>
                                     - 13 -

Section 7.22 KEEP TIDY

            At the end of each business day to leave the Leased Premises in a
reasonably tidy condition for the purpose of the performance of the Landlord's
cleaning services.

                                   ARTICLE 8

                               LANDLORD COVENANT

Section 8.01 Quiet Enjoyment

            THE LANDLORD COVENANTS WITH THE TENANT for quiet enjoyment.

                                   ARTICLE 9

                          LANDLORD'S FURTHER COVENANTS

Section 9.01

            THE LANDLORD FURTHER COVENANTS WITH THE TENANT AS FOLLOWS:

Section 9.02 LANDLORD'S REPAIRS

      (a)   To keep in a good and reasonable state of repair, and consistent
            with the general standards of first-class office buildings in
            Metropolitan Toronto, but subject to Section 12.01 and with the
            exception of reasonable wear and tear:

            (i)   Those portions of LuCliff Place consisting of lobbies,
                  landscaped areas, entrances and other facilities from time to
                  time provided for common use and enjoyment, and the exterior
                  portions of all buildings and structures from time to time
                  forming part of LuCliff Place and affecting its general
                  appearance.

            (ii)  The buildings and structures comprising LuCliff Place (other
                  than the Leased Premises) and premises of other tenants,
                  including the residential and retail portions of LuCliff
                  Place) including the foundation, roof, exterior walls
                  including glass portions thereof, the systems for interior
                  climate control, the elevators, entrances, stairways,
                  corridors and lobbies and washrooms from time to time provided
                  for use in common by the Tenant and other tenants of the
                  Building and LuCliff Place and the systems provided for
                  bringing utilities to the Leased Premises;

            (iii) The structural members or elements of the Leased Premises; and

      (b)   To repair defects in construction performed or installations made by
            the Landlord in the Leased Premises and insured damage therein;

      (c)   The Landlord shall not be liable for any damages, direct, indirect
            or consequential, or for damages for personal discomfort, illness or
            inconvenience of the Tenant, or the Tenant's servants, clerks,
            employees, invitees or other persons or by reason of failures of
            equipment, facilities or systems or reasonable delays in the
            performance of repairs, replacements and maintenance, unless caused
            by the deliberate act or omission, or the negligence of the
            Landlord, its servants, agents or employees.

                                     --------------
[INITIALS]  [INITIALS]  [INITIALS]   RUDERMAN, SHAW
                                     --------------
<PAGE>
                                     - 14 -

Section 9.03 HEATING

            To provide heating of the Leased Premises to an extent sufficient to
maintain therein at all time during normal business hours, except during the
making of repairs, a reasonable temperature; but should the Landlord make
default in so doing, it shall not be liable for indirect or consequential
damages or damages for personal discomfort or illness.

Section 9.04 AIR-CONDITIONING

            To operate, as reasonably necessary during business hours the
air-conditioning equipment and systems serving the Leased Premises; in case such
equipment or systems be damaged or destroyed, or, in the opinion of the
Landlord, require repairs, inspections, overhauling or replacement, the Landlord
shall carry out such work with all reasonable speed, but shall not be liable for
any damages, direct, indirect or consequential, or for personal discomfort or
illness of the Tenant or his, its or their servants, clerks, employees,
invitees, or other persons by reason of the resulting interruption in
air-conditioning nor shall Rent abate during any such interruptions. The
Tenant's interior office layout, submitted to the Landlord for approval pursuant
to Section 7.16 hereof, shall be modified by the Tenant, if necessary, in
accordance with the reasonable requirements of the heating and air-conditioning
engineers of the Landlord, in order to secure maximum efficiency of the heating
and air-conditioning systems serving the Leased Premises. The Tenant covenants
to keep all air-conditioning vents within the Leased Premises free and clear of
all obstructions and objects. The Tenant acknowledges that 6 months may be
required after the Tenant has fully occupied the Leased Premises in order to
adjust and balance the heating and air-conditioning systems.

Section 9.05 ELEVATOR

            To furnish, except when repairs are being made, passenger elevator
service during normal business hours; operatorless automatic elevator service,
if used, shall be deemed "elevator service" within the meaning of this
paragraph; and to permit the Tenant and the employees of the Tenant to have the
free use of such elevator service in common with others, but the Tenant and such
employees and all other persons using the same shall do so at their sole risk
and under no circumstances shall the Landlord be held responsible for any damage
or injury happening to any person while using the same or occasioned to any
person by any elevator or any of its appurtenances except for such damage or
injury resulting from the negligence of the Landlord, its servants or employees.
In case the elevators of the Building shall be injured or destroyed or be in the
course of replacement or rebuilding, the Landlord shall commence the repair
thereof as soon as may be conveniently done and shall repair or replace the same
and put the same in working order. There shall be no liability on the Landlord
for any claim in respect of any failure by the Landlord to provide elevator
service during any power failure or other cause beyond the control of the
Landlord or by reason of the carrying out of any repairs, maintenance or
replacement of elevators, nor shall there be, consequent upon the foregoing, any
repayment or reduction in the Rent reserved hereby.

Section 9.06 ACCESS

            To permit the Tenant and the employees of the Tenant and all persons
lawfully requiring communication with them to have the use during normal
business hours in common with others of the common areas of the Building,
including the main lobby of LuCliff Place, stairways, corridors on the floor or
floors on which the Leased Premises are situate, elevators and washrooms
therein. It is agreed that the Tenant and all other persons permitted to use
such common areas shall do so at his, her or their sole risk with no liability
attributable to the Landlord in any circumstances. At times other than during
normal business hours the Tenant and the employees of the Tenant and persons
lawfully requiring communications with the Tenant shall have access to the
Building and to the Leased Premises and use of the elevators only in accordance
with the Rules and Regulations.

                                     --------------
[INITIALS]  [INITIALS]  [INITIALS]   RUDERMAN, SHAW
                                     --------------
<PAGE>
                                     - 15 -

Section 9.07 WASHROOMS

            To permit the Tenant and the employees of the Tenant in common with
others entitled thereto to use those washrooms in the Building on the floor or
floors on which the Leased Premises are situated, and which are not entirely
within the premises of another Tenant.

Section 9.08 CARETAKING

            To provide janitor and cleaning services, including outside window
washing, to the Building including the Leased Premises and common areas of the
Building, such services to be rendered substantially in accordance with the
standards of office buildings of a similar type in Toronto as of the date of
this Lease. The Tenant acknowledges and agrees that it shall be solely
responsible for the cleaning and maintenance of all carpets, broadloom or drapes
in the Leased Premises. It is further agreed that the Landlord shall not be
responsible for any act or omission on the part of any person or persons
employed to perform such work, and shall not be responsible for any loss or
damages occasioned by any such persons.

Section 9.09 MAINTENANCE OF COMMON AREAS - Deleted

Section 9.10 LIGHTING

            To light adequately, when reasonably required, the common areas of
the Building except at such times as electric current may not be supplied to the
Landlord and except during breakdowns in equipment, and during the making of
repairs.

Section 9.11 DIRECTORY BOARD

            The Landlord shall install a directory board in the main lobby of
the Building containing the names of tenants of space in the Building. The
Tenant shall be entitled to have his name shown upon the directory board, but
the Landlord shall, in its sole discretion, design the style of such
identification and allocate the space of the directory board for each Tenant.
The Landlord shall, at the request and cost of the Tenant, cause to be painted
on or affixed to the entrance door of the Leased Premises the name of the Tenant
in accordance with the Landlord's uniform scheme of lettering for such doors.

                                   ARTICLE 10

                              FIXTURES, INSURANCE

Section 10.01 FIXTURES

            All installations, alterations, additions, partitions and fixtures
in or upon the Leased Premises, whether placed there by the Tenant or Landlord,
shall, immediately upon such placement, be the Landlord's property without
compensation therefor to the Tenant and, except as hereinafter mentioned in this
Section 10.01, shall not be removed from the Leased Premises by the Tenant at
any time either during or after the Term. Notwithstanding anything herein
contained, the Landlord shall be under no obligation to repair or maintain the
Tenant's installations, alterations, additions, partitions and fixtures or
anything in the nature of a leasehold improvement made or installed by the
Tenant; and further notwithstanding anything herein contained, the Landlord
shall have the right upon the termination of the Lease by effluxion of time or
otherwise to require the Tenant to remove his

                                     --------------
[INITIALS]  [INITIALS]  [INITIALS]   RUDERMAN, SHAW
                                     --------------
<PAGE>
                                     - 16 -

installations, alterations, additions, partitions and fixtures or anything in
the nature of a leasehold improvement made or installed by the Tenant and to
make good any damage caused to the Leased Premises by such installation or
removal. Provided that the Tenant may, if it is not in default, remove its trade
fixtures at the expiration or sooner termination of this Lease, making good any
damage caused to the Leased Premises by such installation or removal. The
Landlord agrees that the Tenant's fumehoods shall be deemed to be Tenant's trade
fixtures.

Section 10.02 TENANT'S INSURANCE

            The Tenant shall take out and keep in force during the Term:

      (a)   Comprehensive general public liability (including bodily injury,
            death and property damage) insurance on an occurrence basis with
            respect to the business carried on, in or from the Leased Premises
            and the Tenant's use and occupancy thereof not less than ONE MILLION
            DOLLARS ($1,000,000.00) which insurance shall include the Landlord
            as a named insured and shall protect the Landlord in respect of
            claims by the Tenant as if the Landlord were separately insured; and

      (b)   Insurance in respect of fire and other such perils as are from time
            to time defined in the usual extended coverage endorsement covering
            the Tenant's trade fixtures and the furniture and equipment of the
            Tenant and all leasehold improvements of the Tenant, and which
            insurance shall include the Landlord as a named insured as the
            Landlord's interest may appear with respect to insured leasehold
            improvements and provide that any proceeds recoverable in the event
            of loss to leasehold improvements shall be payable to the Landlord
            (but the Landlord agrees to make available such proceeds towards the
            repair or replacement of the insured property if this Lease is not
            terminated pursuant to any other provision hereof).

            All insurance required to be maintained by the Tenant hereunder,
shall contain full replacement cost coverage and shall be on terms and with
insurers to which the Landlord has no reasonable objection. The Tenant shall
furnish to the Landlord if and whenever requested by it, certificates or other
evidence acceptable to the Landlord as to the insurance from time to time
required to be effected by the Tenant and its renewal or continuation in force.
If the Tenant shall fail to take out, renew and keep in force such insurance the
Landlord may do so as the agent of the Tenant and the Tenant shall repay to the
Landlord any amounts paid by the Landlord as premiums forthwith upon demand.

                                   ARTICLE 11

                     LICENCES, ASSIGNMENTS AND SUBLETTINGS

Section 11.01 LICENCES, ETC.

            The Tenant shall not permit any part of the Leased Premises to be
used or occupied by any person other than the Tenant, and the employees of the
Tenant, or permit any part of the Leased Premises to be used or occupied by a
licensee or concessionaire, or permit any persons to be upon the Leased Premises
other than the Tenant, and its employees, customers and others having lawful
business with them.

Section 11.02 ASSIGNMENTS AND SUBLETTINGS

            The Tenant shall not assign this Lease or sublet the whole or any
part of the Leased Premises unless:

      (1)   it shall have received or procured a bona fide written offer
            therefor to take an assignment or sublease which is not inconsistent
            with, and the acceptance of which would not breach any provisions of
            this Lease if this Section 11.02 is complied with and which the
            Tenant has determined to accept subject to this Section 11.02 being
            complied with, and

                                     --------------
[INITIALS]  [INITIALS]  [INITIALS]   RUDERMAN, SHAW
                                     --------------
<PAGE>
                                     - 17 -

      (2)   it shall have first requested and obtained the consent in writing of
            the Landlord thereto;

      (3)   total rent to be paid by the assignee or subtenant which exceeds the
            Basic Rent and Additional Rent, on a proportionate basis relative to
            the space occupied, to be paid by the present Tenant to the Landlord
            under the terms of the Lease, shall be paid to the Landlord;

      (4)   any fee, payment, charge or other consideration payable by the
            subtenant or assignee in respect of the Tenant's assignment of this
            Lease or subletting of the Leased Premises shall accrue to the
            benefit of and shall be paid to the Landlord.

            Any request for such consent shall be in writing and accompanied by
a true copy of such offer, and the Tenant shall furnish to the Landlord all
information available to the Tenant or any additional information requested by
the Landlord, as to the responsibility, reputation, financial standing and
business of the proposed assignee or subtenant. Within fifteen (15) days after
the receipt by the Landlord of such request for consent and of all information
which the Landlord shall have requested hereunder (and if no such information
has been requested, within fifteen (15) days after receipt of such request for
consent) the Landlord shall have the right upon notice in writing to the Tenant,
if the request is to assign this Lease or sublet the whole of the Leased
Premises, to cancel and terminate this Lease, or if the request is to sublet a
part of the Leased Premises only, to cancel and terminate this Lease with
respect to such part, in each case as of a termination date sixty (60) days
following the giving of such notice, and in such event the Tenant shall
surrender the whole or part, as the case may be, of the Leased Premises in
accordance with such notice and Rent shall be apportioned and paid on the date
of surrender and, if a part only of the Leased Premises is surrendered, Rent
shall thereafter abate proportionately. If the Landlord shall not exercise the
foregoing right of cancellation then the Landlord's consent to the Tenant's
request for consent to assign or sublet shall not be unreasonably withheld and
if such consent shall be given, the Tenant shall assign or sublet, as the case
may be, only upon the terms set out in the offer submitted to the Landlord as
aforesaid and not otherwise, and within six (6) months after the Tenant's
request for consent and only upon the assignee or sub-tenant entering into an
agreement with the Landlord in form satisfactory to the Landlord's solicitors to
perform, observe and keep each and every covenant, proviso, condition and
agreement in this Lease on the part of the Tenant to be performed, observed and
kept including payment of Rent and all other sums and payments agreed to be paid
or payable under this Lease on the days and at the times and in the manner
herein specified.

            Whether or not the Landlord consents to any request as aforesaid,
the Tenant shall pay to the Landlord all reasonable costs incurred by the
Landlord in considering any request for consent and in completing any of the
documentation involved in implementing any such assignment or sublet including
the agreements between the Landlord and each of the Tenants and any assignee or
subtenant.

            Without limitation, the Tenant shall for purposes of this paragraph
11 be considered to assign or sublet in any case where it permits the Leased
Premises or any portion thereof to be occupied by persons other than the Tenant,
its employees and others engaged in carrying on the business of the Tenant,
whether pursuant to the assignment, subletting, license or other right, and
shall also include any case where any of the aforegoing occurs by operation of
law. The Tenant shall also be considered to assign or sublet if the Tenant is a
corporation of which this Lease is, in the reasonable opinion of the Landlord, a
material asset or a material liability and control of such corporation changes,
and to permit the application of this provision the Tenant (if a corporation)
covenants to notify the Landlord of any proposed change of control.

                                     --------------
[INITIALS]  [INITIALS]  [INITIALS]   RUDERMAN, SHAW
                                     --------------
<PAGE>
                                     - 18 -

Section 11.03 RELEASE OF TENANT

            In no event shall any assignment or subletting to which the Landlord
may have consented, release or relieve the Tenant from its obligations to fully
perform all the terms, covenants and conditions of this Lease on its part to be
performed. No consent by the Landlord to any assignment or subletting shall be
construed to mean that the Landlord has consented or will consent to any further
assignment or subletting. The tenant agrees that it will sign the agreement
which is to be signed by any assignee or sub-tenant as described in Section
11.02 above, and will agree to be jointly and severally liable with such
assignee or subtenant.

                                   ARTICLE 12

                             DAMAGE AND DESTRUCTION

Section 12.01 ABATEMENT AND TERMINATION

            It is agreed between the Landlord and the Tenant that:

      (a)   In the event of damage to the Leased Premises or to the Building or
            other portions of LuCliff Place affecting access or services
            essential to the Leased Premises, and if the damage is such that the
            Leased Premises or any substantial part thereof is rendered not
            reasonably capable of use and occupancy by the Tenant for the
            purposes of its business for any period of time in excess of ten
            (10) days, then

            (i)   Unless the damage was caused by the fault or negligence of the
                  Tenant or its employees, invitees or others under its control,
                  from and after the expiration of ten (10) days after the
                  occurrence of the damage and until the Leased premises are
                  again reasonably capable of use and occupancy as aforesaid,
                  Basic Rent (but not any other payments required to be made by
                  the Tenant hereunder) shall abate from time to time in
                  proportion to the part or parts of the Leased Premises not
                  reasonably capable of such use and occupancy, and

            (ii)  Unless this Lease is terminated as hereinafter provided, the
                  Landlord or the Tenant, as the case may be (according to the
                  nature of the damage and their respective obligations to
                  repair as provided in Sections 9.03 and 7.01, shall repair
                  such damage with all reasonable diligence, but to the extent
                  that any part of the Leased Premises is not reasonably capable
                  of such use and occupancy by reason of damage which the Tenant
                  is obligated to repair hereunder, any abatement of rent to
                  which the Tenant is otherwise entitled hereunder shall not
                  extend later than the time by which, in the reasonable opinion
                  of the Landlord, repairs by the Tenant ought to have been
                  completed with reasonable diligence, and

      (b)   If either:

            (i)   the Leases Premises, or

            (ii)  premises whether of the Tenant or other tenants of LuCliff
                  Place comprising in the aggregate half on more of the Rentable
                  Area of the Building or of LuCliff Place,

            are substantially damaged or destroyed by any cause to the extent
            such that in the reasonable opinion of the Landlord they cannot be
            repaired or rebuilt within one hundred and eighty (180) days after
            the occurrence of the damage or destruction, the Landlord or Tenant
            may at its option, exercisable by written notice to the other given
            within thirty (30) days of the occurrence of such damage or
            destruction, terminate this lease, in which event neither the
            Landlord nor the Tenant shall be bound to repair as provided in
            clauses 9.03 and 7.01 and the

                                     --------------
[INITIALS]  [INITIALS]  [INITIALS]   RUDERMAN, SHAW
                                     --------------
<PAGE>
                                     - 19 -

            Tenant shall instead deliver up possession of the Leased Premises to
            the Landlord forthwith but in any event within sixty (60) days after
            delivery of such notice of termination, and rent shall be
            apportioned and paid to the date upon which possession is so
            delivered up (but subject to any abatement to which the Tenant may
            be entitled under Subsection 12.01 (a) of this Section by reason of
            the Leased Premises having been rendered in whole or in part not
            reasonably capable of use and occupancy), but otherwise the Landlord
            or the Tenant as the case may be (according to the nature of the
            damage and their respective obligations to repair) shall repair such
            damage with all reasonable diligence.

                                   ARTICLE 13

                          LOSS AND DAMAGE TO PROPERTY

Section 13.01

            Saving and excepting any loss, damage or injury arising out of the
negligence of the Landlord, its servants or employees and against which the
Tenant is not insured and is not required to be insured under this Lease, the
Landlord shall not be liable or responsible in any way for any loss of or damage
or injury to any property belonging to the Tenant or to employees of the Tenant
or to any other person while such property is on the Leased Premises or in the
Building or in or on the surrounding area owned by the Landlord comprising
LuCliff Place, whether or not such property has been entrusted to employees of
the Landlord and without limiting the generality of the foregoing, the Landlord
shall not be liable for any damage to any such property caused by steam, water,
rain or snow which may leak into, issue or flow from any part of the Building or
from the water, steam or drainage pipes or plumbing works of the Building, or
from any other place or quarter or for any damage caused by or attributable to
the condition or arrangement of any electric or other wiring or for any damage
caused by anything done or omitted by any other tenant.

                                   ARTICLE 14

                                  LIABILITIES

Section 14.01 IMPOSSIBILITY OF PERFORMANCE

            It is understood and agreed that whenever and to the extent that the
Landlord shall be unable to fulfil, or shall be delayed or restricted in the
fulfilment of any obligation hereunder in respect of the supply or provision of
any service or utility or the doing of any work or the making of any repairs by
reason of being unable to obtain the material, goods, equipment, service,
utility or labour required to enable it to fulfil such obligations or by reason
of any statute, law or order-in-council or any regulation or order passed or
made pursuant thereto or by reason of the order or direction of any
administration, controller or board, or any governmental department or officer
or other authority or by reason of not being able to obtain any permission or
authority required thereby, or by reason of any other cause beyond its control
whether of the foregoing character or not, the Landlord shall be entitled to
extend the time for fulfilment of such obligation by a time equal to the
duration of such delay or restriction and the Tenant shall not be entitled to
compensation for any inconvenience, nuisance or discomfort thereby occasioned.

Section 14.02 CLAIMS FOR COMPENSATION

            No claim for compensation shall be made by the tenant by reason of
inconvenience, damage or annoyance arising from the necessity of repairing any
portion of LuCliff Place of which the Leased Premises form a part, howsoever the
necessity may arise.

                                     --------------
[INITIALS]  [INITIALS]  [INITIALS]   RUDERMAN, SHAW
                                     --------------
<PAGE>
                                     - 20 -

                                   ARTICLE 15

                                TENANT'S DEFAULT

Section 15.01 RE-ENTRY

            Provided and it is hereby expressly agreed that if and whenever the
Rent hereby reserved or any part thereof shall not be paid on the days appointed
for payment thereof, whether lawfully demanded or not, or in the case of breach
or non-observance or non-performance of any of the covenants, agreements,
provisos, conditions or Rules and Regulations on the part of the Tenant to be
kept, observed or performed, for a period of ten (10) days following receipt of
written notice of such breach or non-observance or non-performance, or in the
case the Leased Premises shall be vacated or remain unoccupied for fifteen (15)
consecutive days or in case the term shall be taken in execution or attachment
for any cause whatever, then and in every such case, it shall be lawful for the
Landlord thereafter to enter into and upon the Leased Premises or any part
thereof in the name of the whole and the same to have again, repossess and enjoy
as of its former estate, anything in this Lease contained to the contrary
notwithstanding other than proviso to this Section 15: Provided that
notwithstanding anything to the contrary hereinbefore in this Section 15
contained, the Landlord shall not at any time have the right to re-enter and
forfeit this Lease by reason of the Tenant's default in the payment of Basic
Rent and Additional Rent, hereby reserved by this Lease, unless and until the
Landlord shall have given to the Tenant at least five (5) business days' written
notice of its intention so to do and setting forth the default complained of and
the Tenant shall have the right during such five (5) business days to cure any
such default in payment of Rent, provided that in the event of a breach,
non-observance or non-performance by the Tenant which is capable of being cured,
but is not reasonable capable of being cured within the ten (10) day notice
period described above the Tenant shall not be deemed to be in default if it
has commenced to remedy such breach or non-observance or non-performance and has
diligently thereafter proceeded to complete the remedying thereof.

Section 15.02 LANDLORD'S RIGHT TO PERFORM

            In addition to all other remedies the Landlord may have by this
Lease, at law or in equity, if the Tenant shall make default in any of its
obligations hereunder, the Landlord may as its option perform any such
obligations after fifteen (15) days' written notice to the Tenant and in such
event the cost of performing such obligations plus an administrative charge of
fifteen percent (15%) of such cost, shall be payable by the Tenant to the
Landlord on the next ensuing Rent payment date as Additional Rent, together with
interest at the Stipulated Rate of Interest from the date of the performance of
such obligations by the Landlord. On default of such payment, the Landlord shall
have the same remedies as on default of payment of Rent. In addition, the
Landlord shall be entitled to collect to pro-rated amount of interest computed
at the Stipulated Rate of Interest upon all arrears of Rent with a minimum of
one (1) month's interest as aforesaid, if the Rent is in arrears for more than
five (5) working days. Such interest shall be computed from the day following
the due date(s) of such Rent to the date of payment thereof.

Section 15.03 BANKRUPTCY, ETC.

            Provided further that in case without the written consent of the
Landlord the Leased Premises shall be used by any other person than the Tenant,
the Tenant's permitted assigns or permitted subtenant, or shall be used for any
other purpose than that for which the same were let or in case the Term or any
of the goods and chattels of the Tenant shall be at any time seized in execution
or attachment by any creditor of the Tenant or the Tenant shall make any
assignment for the benefit of creditors or any bulk sale or become bankrupt or
insolvent or take the benefit of any Act now or hereafter in force for bankrupt
or insolvent debtors, or, if the Tenant is a corporation and any order shall be
made for the winding-up of the Tenant, or other termination of the corporate
existence of the Tenant, then in any such case this Lease shall at the option of
the Landlord cease and determine and the Term shall immediately become forfeited
and void and the then current month's rent and the next ensuing three (3)
months' shall immediately become due and be paid and the Landlord may re-enter
and take possession of the Leased Premises as though the Tenant or other
occupant or occupants of the Leased Premises was or were holding over after the
expiration of the Term without any right whatever.

                                     --------------
[INITIALS]  [INITIALS]  [INITIALS]   RUDERMAN, SHAW
                                     --------------
<PAGE>
                                     - 21 -

Section 15.04 VACATED OR IMPROPERLY USED

            It is hereby declared and agreed by and between the Landlord and
tenant that in case the said Leased Premises shall be come abandoned or if the
Leased Premises shall become vacant or not used for the purpose aforesaid and
remain so for a period of fifteen (15) consecutive days or if the Leased
Premises shall be used by any other person or persons than the Tenant or for any
other purpose than that for which the same were let without the written consent
of the Landlord this Lease shall at the option of the Landlord forthwith cease
and determine and thereupon the instalments of Basic Rent and Additional Rent
accruing due during the next ensuing three (3) months shall immediately become
due and payable to the Landlord and the Landlord may re-enter and take
possession of the demised premises.

Section 15.05 DISTRESS

            The Tenant waives and renounces the benefit of any present or future
statute taking away or limiting the Landlord's right of distress and covenants
and agrees that notwithstanding any such statute none of the goods and chattels
of the Tenant on the Leased Premises at any time during the Term shall be exempt
from levy by distress for Rent in arrears. The Tenant will not sell, dispose of
or remove any of the fixtures, goods or chattels of the Tenant from or out of
the Leased Premises during the Term without the consent of the Landlord, unless
the Tenant is substituting new fixtures, goods and chattels of equal value or is
bona fide disposing of individual items which have become extras for the
Tenant's purposes; and the Tenant will be the owner of its fixtures, goods and
chattels and will not permit them to become subject to any lien, mortgage,
charge or encumbrance.

Section 15.06 RIGHT OF RE-ENTRY TO RELET

            The Tenant further covenants and agrees that on the Landlord's
becoming entitled to re-enter upon the Leased Premises under any of the
provisions of this Lease, the Landlord in addition to all other rights shall
have the right to enter the Leased Premises as the agent of the tenant either by
force or otherwise, without being liable for any prosecution therefor and to
relet the Leased Premises as the agent of the Tenant, and to receive the Rent
therefor and as the agent of the Tenant, to take possession of any furniture or
other property on the Leased Premises and to sell the same at public or private
sale without notice and to apply the proceeds of such sale and any Rent derived
from reletting the Leased Premises upon account of the Rent under this Lease,
and the Tenant shall be liable to the Landlord for the deficiency, if any.

Section 15.07 REMEDIES CUMULATIVE

            The Landlord may from time to time resort to any or all of the
rights and remedies available to it in the event of any default hereunder by the
Tenant, either by any provision of this Lease or by statute or the general law,
all of which rights and remedies are intended to be cumulative and not
alternative, and the express provisions hereunder as to certain rights and
remedies are not to be interpreted as excluding any other of additional rights
and remedies available to the Landlord by statute or the general law.

Section 15.08 LEGAL EXPENSES

            In the event that is shall be necessary for the Landlord to commence
an action for the collection of Rent herein reserved or any portion thereof, or
any other sum hereunder or if the same must be collected upon the demand of a
solicitor, or in the event that it becomes necessary for the Landlord to
commence an action to compel performance of any of the terms, conditions,
covenants or provisos contained herein, then unless the Landlord shall lose such
action it shall be entitled to collect from the Tenant all reasonable expenses
incurred therefor, including reasonable legal fees.

                                     --------------
[INITIALS]  [INITIALS]  [INITIALS]   RUDERMAN, SHAW
                                     --------------
<PAGE>
                                     - 22 -

                                   ARTICLE 16

                            NON-WAIVER, OVERHOLDING

Section 16.01 NON-WAIVER

            No condoning, excusing or overlooking by the Landlord or Tenant of
any default, breach or non-observance by the Tenant of the Landlord at any time
or times in respect of any covenant, proviso or condition herein contained shall
operate as a waiver of the Landlord's or the Tenant's rights hereunder in
respect of any continuing or subsequent default, breach or non-observance, or so
as to defeat or affect in any way the rights of the Landlord or the Tenant
herein in respect of any such continuing or subsequent default or breach, and no
waiver shall be inferred from or implied by anything done or omitted by the
Landlord or the Tenant save only express waiver in writing.

Section 16.02 OVERHOLDING

            If the Tenant remains in possession of the Leased Premises after the
expiration or sooner termination of the Term without any further written
agreement but with the express or implied consent of the Landlord, and in
circumstances in which a tenancy other than a weekly tenancy would thereby be
implied by implication of law, the Tenant shall be deemed to be a weekly tenant
only upon and subject to the same terms and conditions as herein contained,
except that the weekly Basic Rent shall be 150% of a prorated portion of Basic
Rent payable during the last month of the Term, and nothing, including the
acceptance of any Rent by the Landlord, shall extend to the contrary except a
specific agreement in writing between the Landlord and the Tenant, and the
Tenant hereby authorizes the Landlord to apply any monies received from the
Tenant in payment of such weekly Basic Rent.

                                   ARTICLE 17

                      SUBORDINATION, ACKNOWLEDGEMENT, ETC.

Section 17.01 SUBORDINATION

      (a)   This Lease is subject and subordinate to all mortgages (including
            any deed of trust and mortgage securing bonds and all indentures
            supplemental thereto) which may now or hereafter affect LuCliff
            Place, and to all renewals, modifications, consolidations,
            replacements and extensions throughout. The Tenant agrees to execute
            promptly any certificate in confirmation of such subordination as
            the Landlord may request and hereby constitutes the Landlord the
            agent and attorney of the Tenant for the purpose of executing any
            such certificate and of making application at any time and from time
            to time register postponements in favour of any such mortgage in
            order to give effect to the provisions of this Section. Each and
            every time that the Landlord requests that the Tenant execute a
            subordination certificate as aforesaid, the Landlord agrees to
            request and to use reasonable efforts to obtain from any such
            mortgagee a written non-disturbance agreement wherein the mortgagee
            agrees that the possession by the Tenant of the Leased Premises
            shall not be disturbed, affected, or impaired by the mortgagee
            provided that the Tenant is not in default under this Lease.

      (b)   Without limiting the general rights of the Landlord to assign this
            Lease, the Landlord shall be entitled to assign this Lease as
            collateral security for any mortgage or mortgages upon LuCliff Place
            or any part thereof, and the Tenant covenants, if requested to do,
            to acknowledge in writing any notice of assignment of this Lease by
            the Landlord.

Section 17.02 TENANT'S ACKNOWLEDGEMENTS

            The Tenant agrees that it will at any time and from time to time
upon not less than ten (10) days' prior notice execute and deliver to the
Landlord a statement in writing certifying that this Lease is unmodified and in
full force and effect (or, if modified, stating the modifications and that the
same is in full force and effect as modified), the amount of the annual rental
then being paid hereunder, the dates to which the same, by instalments or

                                     --------------
[INITIALS]  [INITIALS]  [INITIALS]   RUDERMAN, SHAW
                                     --------------

<PAGE>

                                      -23-

otherwise, and other charges hereunder have been paid, and whether or not there
is any existing default on the part of the Landlord of which the Tenant has
notice and any other matter pertaining to this Lease as to which the Landlord
shall request a statement.

Section 17.03 REGISTRATION

            The Tenant covenants and agrees with the Landlord that the Tenant
will not register this Lease in this form in the Registry Office or the Land
Titles Office.

The Tenant shall not register or cause to be registered any notice of this Lease
except in a form which shall have been approved prior to registration by the
solicitors for the Landlord acting reasonably. It is the intent of the parties
that such Notice of Lease shall disclose the minimum amount of information
regarding the terms and conditions of this Lease that is necessary to protect
the Tenant's interest in the lands, and shall not disclose the amount of Rent
being paid.

                                   ARTICLE 18

                                  MISCELLANEOUS

Section 18.01 RECOVERY OF ADJUSTMENTS

            The Landlord shall have (in addition to any other right or remedy of
the Landlord) the same rights and remedies in the event of default by the Tenant
in payment of any amount payable by the Tenant hereunder, as the Landlord would
have in the case of default in payment of Rent.

Section 18.02 LEASE ENTIRE AGREEMENT

            The Tenant acknowledges that there are no covenants,
representations, warranties, agreements or conditions expressed or implied,
collateral or otherwise forming part of or in any way affecting or relating to
this Lease save as expressly set out in this Lease and that this Lease
constitute the entire agreement between the Landlord and the tenant and may not
be modified except as herein explicitly provided or except by subsequent
agreement in writing of equal formality hereto executed by the Landlord and the
Tenant. Notwithstanding the foregoing, the Tenant shall remain liable to pay for
those improvements in the Leased Premises which have been made by the Landlord
for or on behalf of the Tenant and which are in excess of the work otherwise
required to be done by the Landlord.

Section 18.03 COVENANTS, SEVERABILITY

            The Landlord and the Tenant agree that all of the provisions of this
Lease are to be construed as covenants and agreements as though the words
importing such covenants and agreements were used in each separate paragraph
hereof. Should any provision or provisions of this Lease be illegal or not
enforceable it or they shall be considered separate and severable from the Lease
and its remaining provisions shall remain in force and be binding upon the
parties hereto as though the said provision or provisions had never been
included.

Section 18.04 CAPTIONS

            The captions appearing in this Lease have been inserted as a matter
of convenience and for reference only and in no way define, limit or enlarge the
scope or meaning of this Lease or of any provisions hereof.

Section 18.05 AGENCY

            The Landlord may perform all or any of its obligations hereunder by
or through such managing or other agency or agencies as it may from time to time
determine and the Tenant shall, as from time to time determine and the Tenant
shall, as from time to time directed by the Landlord, pay to any such agent any
moneys payable hereunder to the Landlord.

                                     --------------
[INITIALS]  [INITIALS]  [INITIALS]   RUDERMAN, SHAW
                                     --------------
<PAGE>

                                      -24-

Section 18.06 NOTICE

      Any notice required or contemplated by any provision of this Lease shall
be given in writing enclosed in a sealed envelope addressed, in the case of
notice to the Landlord to it at 700 Bay Street, Toronto, Ontario, and in the
case of notice to the Tenant to it at the Leased Premises, and mailed in
Metropolitan Toronto registered and postage prepaid. The time of giving of such
notice shall be conclusively deemed to be the second business day after the day
of such mailing. Such notice shall also be sufficiently given if and when the
same shall be delivered, in the case of notice to the Landlord, to an executive
officer of the Landlord, and in the case of notice to the Tenant, to him
personally or to an executive officer of the Tenant if the Tenant is a
corporation. Such notice, if delivered, shall be conclusively deemed to have
been given and received at the time of such delivery. If in this Lease two or
more persons are named as Tenant, such notice shall also be sufficiently given
if and when the same shall be delivered personally to any one of such persons.
Provided that either party may, by notice to the other, from time to time
designate another address in Canada to which notices mailed more than ten (10)
days thereafter shall be addressed.

Section 18.07 INTERPRETATION

      In this Indenture "herein", "hereof", "hereby", "hereunder", "hereto",
"hereinafter", and similar expressions refer to this Indenture and not to any
particular paragraph, section or other portion thereof, unless there is
something in the subject matter or context inconsistent therewith.

Section 18.08 BINDING, ENURING AND INTERPRETATION

      This Indenture and everything contained hereinafter shall enure to the
benefit of and be binding upon the respective heirs, executors, administrators,
successors, assigns and other legal representatives as the case may be, of each
and every of the parties hereto, subject to the granting of consent by the
Landlord as provided in Article 11 to any assignment or sublease, and every
reference to any party hereto shall include the heirs, executors,
administrators, successors, assigns and other legal representatives of such
party, and where there is not more than one Tenant or there if a female party or
a corporation, the provisions hereof shall be read with all grammatical changes
thereby rendered necessary and all covenants shall be deemed joint and several.

                                     --------------
[INITIALS]  [INITIALS]  [INITIALS]   RUDERMAN, SHAW
                                     --------------
<PAGE>

                                      -25-

                                   ARTICLE 19

          ADDITIONAL DEFINITIONS AND AMENDMENTS TO STANDARD LEASE FORM

Section 19.01 Additional Definitions

            The parties agree that when used in this Lease the following words
or expressions have the meaning hereinafter set forth:

(a)   "Operating Costs Escalation" means the amount by which Operating Costs for
      any fiscal year of the Landlord (as described in Section 4.03 of this
      Lease) exceed Operating Costs for the calendar year 1995.

(b)   "Landlord's Taxes Escalation" means:

      (i)   If the Leased Premises are separately assessed, the amount by which
            Landlord's Taxes levied or charged against the Leased Premises in
            any calendar year during the Term exceeds the amount of Landlord's
            Taxes levied or charged against the Leased Premises for the calendar
            year 1995, together with Tenant" Proportionate Share of Landlord"'s
            Taxes levied or charged against areas of the Building which are not
            leased or set aside by the Landlord for leasing including the
            parking facilities and Common Areas; or

      (ii)  If the Leased Premises are not separately assessed the Tenant's
            Proportionate Share of the amount by which Landlord's Taxes in any
            calendar year during the Term exceed the amount of Landlord's Taxes
            for the calendar year 1995.

(c)   "Additional Services" shall have the meaning ascribed thereto in Section
      7.12.

Section 19.02 Further Use of Premises Provisions

(a)   The Landlord warrants and represents that the Tenant's proposed use of the
      Leased Premises describe in Section 7.06 herein, including the required
      plumbing, electrical, fume hoods, mechanical and auto clave rooms is
      permitted, as of the date hereof, by the applicable zoning by-laws and any
      legislation regulating the use of the Leased Premises.

(b)   Exclusive Use.

      The Tenant acknowledges that the Landlord has granted certain exclusive
use privileges to some tenants of the Building, including to Toronto Vascular
Associates Limited relating to ultrasound, x-ray and angiography services
(hereinafter collectively called "TVAL's Exclusive Uses") within the Building
and to RDS Diagnostics Ltd. and to Dr. Roger Stronell relating to ultrasound
(including the use of mobile ultrasound units) and mammography (hereinafter
collectively called "RDS's Exclusive Uses"). The Tenant covenants that it will
not at any time during the Term or any renewal thereof perform or allow to be
performed from, in or upon the Leased Premises, or any portion thereof, any
ultrasound, x-ray, angiography, mammography or catscan services or procedures.
The Tenant covenants that it will not at any time during the Term or any renewal
thereof, occupy or use or permit the Leased Premises or any portion thereof to
be used or occupied for the purpose of TVAL's Exclusive Uses or RDS's Exclusive
Uses.

                                     --------------
[INITIALS]  [INITIALS]  [INITIALS]   RUDERMAN, SHAW
                                     --------------
<PAGE>

                                      -26-

                                   ARTICLE 20

                              ADDITIONAL PROVISIONS

Section 20.01 OPTION TO RENEW

      Provided that the Tenant is not then, and has not been, in breach of any
of the terms, conditions, covenants, provisos and agreements of this Lease,
including the covenant to pay Rent, and has not become insolvent or bankrupt or
had a receiver appointed in respect of its assets or business, the Tenant shall
have the option to renew this Lease for one further term of five (5) years;
Provided that in order to exercise its option to renew the Tenant shall be
required to give the Landlord notice thereof in writing not later than November
30, 1999 and not earlier than May 31, 1999. If the Tenant does not deliver the
notice as aforesaid this Lease shall terminate upon the expiration of the Term.
Any renewal pursuant to this proviso shall be upon the same terms, conditions,
covenants, provisos and agreements as contained in this Lease except that:

      (a)   there shall be no further right to renew this Lease;

      (b)   the Basic Rent payable shall not be as set out in this Lease, but
            shall be the market gross rental (including all net rents and
            additional rents) per square foot for similar premises in or in the
            vicinity of the Building at the commencement of the renewal term
            multiplied by the number of square feet of Rentable Floor Area of
            the Leased Premises. If any dispute arises between the Landlord and
            the Tenant as to the said current market gross rental the issue
            shall be refereed to arbitration pursuant to the Arbitrations Act,
            R.S.O. 1990;

      (c)   for the purposes of calculating Operating Costs Escalation,
            Landlord's Taxes Escalation, caretaking costs, and electricity
            charges, the base year shall be the year 2000, so that the Tenant
            shall be responsible for all escalations of such expenses from and
            after the commencement of the renewal term;

      (d)   the Leased Premises shall be leased on an "as is" basis and the
            Landlord shall not be required to do any work in connection
            therewith, and there shall be no leasehold improvement allowance or
            inducement payment, nor any rent free period nor fixturing period.

SECTION 20.02 RIGHT OF FIRST REFUSAL TO LEASE TWELFTH FLOOR PREMISES

(a)   Provided that the Tenant is not then and has not been n breach of any of
      its covenants and obligations under this Lease, the Landlord grants to the
      Tenant a right of first refusal to lease any space which becomes available
      to lease on the Twelfth Floor of the Building during the Term on the terms
      and conditions hereinafter set out.

(b)   If the Landlord receives a bona fide offer to lease any premises on the
      12th Floor of the Building which the Landlord is willing to accept or has
      accepted conditional upon the Tenant not exercising its right of first
      refusal herein, (such bona fide written offer to lease being hereinafter
      referred to as a "12th Floor Offer") the Landlord shall forward to the
      Tenant a true copy of the 12th Floor Offer.

                                     --------------
[INITIALS]  [INITIALS]  [INITIALS]   RUDERMAN, SHAW
                                     --------------
<PAGE>

                                      -27-

(c)   The delivery of such copy of a 12th Floor Offer shall be deemed to be an
      offer by the Landlord to the Tenant to lease the premises described in
      such 12th Floor Offer upon and subject to the terms and conditions therein
      set out.

      The Tenant shall have a period of five (5) business days after receipt of
      any such 12th Floor Offer to accept the same by delivery of notice in
      writing to the Landlord. If the Tenant delivers written notice of
      acceptance to the Landlord within the said five (5) business day period,
      the Tenant shall lease from the Landlord and the Landlord shall lease to
      the Tenant the premises described in the 12th Floor Offer on the terms and
      conditions therein set out.

(d)   If the Tenant fails to deliver a notice of acceptance within the said time
      period, the Landlord shall be free to accept the 12th Floor Offer (or to
      waive the condition, as the case may be) and to lease the premises
      described therein to the third party described in such 12th Floor Offer on
      the terms and conditions therein set out.

(e)   Provided, however, this right of first refusal shall be exercisable only
      during the Term or any renewal thereof, from time to time as space on the
      12th floor of the Building becomes available to lease. This right of first
      refusal shall terminate on the expiration or sooner termination of this
      Lease or any renewal thereof.

SECTION 20.03 PARKING

(a)   The Landlord shall allocate to the Tenant and the Tenant shall have the
      right to rent during the Term and any renewal thereof any number of
      unreserved parking spaces up to a maximum of ten (10) in the underground
      parking garage located at LuCliff Place. Such right may be exercised at
      any time throughout the Term of this Lease. If the Tenant is not renting
      the maximum number of parking spaces at the end of the first year of the
      Term of this Lease its right to rent spaces shall be limited to the number
      then rented, and if the tenancy of any space or spaces is terminated
      thereafter, the Tenant's right to rent spaces shall be further reduced by
      the number of tenancies so terminated. The Tenant may terminate the rental
      of any parking space or spaces at any time upon delivery to the Landlord
      of one (1) month's prior written notice.

(b)   The rental for such unreserved underground parking spaces shall be the
      parking space rental charged from time to time by the Landlord to third
      parties for unreserved monthly parking in the said underground parking
      garage. The rent for the unreserved underground parking spaces shall be
      payable monthly in advance on the first day of each and every month as
      Additional Rent and initially shall be ONE HUNDRED DOLLARS ($100.00) per
      parking space per month plus applicable taxes (including, without
      limitation GST) for daily use for an eleven (11) hour time period (7:00
      a.m. to 6:00 p.m.) and ONE HUNDRED AND FIFTY DOLLARS ($150.00) per parking
      space per month plus applicable taxes for daily use for a twenty-four (24)
      hour time period.

(c)   The Landlord shall not be responsible for any loss or damage to property
      or any personal injury which shall be sustained by the Tenant or any
      employee, customer, or other persons who may be in the said underground
      parking garage or the entrances and driveways appurtenant thereto, or
      occasioned in connection with the use of the said underground parking
      garage. All risks of any such injury or loss are assumed by the Tenant who
      shall hold the Landlord harmless and indemnified therefrom. The Tenant
      acknowledges and agrees that not security services shall be provided and
      that the use of the parking spaces shall be at the risk of the Tenant, its
      employees and its customers.

                                     --------------
[INITIALS]  [INITIALS]  [INITIALS]   RUDERMAN, SHAW
                                     --------------
<PAGE>
                                     - 28 -

(d)   Notwithstanding any other provision of this Lease the Tenant shall not
      have the right to assign or sublet the right to use the said unreserved
      parking spaces or any individual parking space without the written consent
      of the Landlord which may be arbitrarily and unreasonably withheld. Any
      purported subletting or assigning of, or permission to occupy, any parking
      space rented by the tenant hereunder without the Landlord's permission to
      occupy, any parking space rented by the Tenant hereunder without the
      Landlord's written consent shall be null and void. If the Tenant purports
      to so assign, sublet, or permit occupancy without the Tenant's written
      consent the Landlord shall have the right to rent all parking spaces
      hereunder forthwith by delivery of written notice to the Tenant.

(e)   The Tenant shall comply with all rules and regulations with respect to the
      use of the parking facility provided for the Building made by the Landlord
      from time to time.

SECTION 20.04 RECREATIONAL FACILITIES

      The Tenant's employees shall be permitted to use the exercise room and
      swimming pool located in LuCliff Place (hereinafter called "Recreational
      Facilities") only during the term and any renewal thereof upon the terms
      set out in this Lease. The tenant shall pay a charge for the use of the
      Recreational Facilities calculated at the rate of Fifteen Dollars ($15.00)
      per person per month payable monthly in advance on the first day of each
      and every month of the term and any renewal thereof as Additional Rent.
      Use of the Recreational Facilities by the Tenant shall be limited to use
      by existing employees of the Tenant only and shall be restricted to a
      three (3) hour time period commencing at 11:00 a.m. and ending at 2:00
      p.m., Mondays to Fridays (business days only) inclusive, and excluding
      Saturdays, Sundays and statutory holidays.

      All employees shall abide by the Landlord's rules and regulations relating
      to the use of the Recreational Facilities. The Landlord shall have the
      right in its discretion to refuse any of the Tenant's employees use of the
      Recreational Facilities based on a prior breach of the rules and
      regulations or other inappropriate conduct of such individual within the
      Recreational Facilities.

SECTION 20.05 DEPOSIT

      The Tenant shall pay to the Landlord the sum of FIFTY EIGHT THOUSAND, FOUR
      HUNDRED AND FORTY SIX DOLLARS ($58,446.00) to be held by the Landlord and
      applied to the last payments of Basic Rent payable hereunder. The Landlord
      acknowledges receipt of the Tenant's cheque post-dated to May 1, 1995 in
      the amount of FIFTY EIGHT THOUSAND, FOUR HUNDRED AND FORTY SIX DOLLARS
      ($58,446.00). Interest accrued on the deposit at the rate of six per cent
      (6%) per annum from the commencement date of the Term will be credited to
      the Tenant at the end of the Term or, if all Basic Rent and Additional
      Rent have been paid to the end of the Term, the Landlord shall pay the
      said accrued interest to the Tenant.

SECTION 20.06 SECURITY

      The Tenant may install at its own expense new locks on the exterior doors
      and stair well doors which provide access to Leased Premises, together
      with other security devices acceptable to the Landlord acting reasonably,
      including access cards and access codes, provided that immediately
      following the installation of such locks and other security devices the
      Tenant will provide the Landlord with such keys, information relating to
      codes and access cards as are necessary to permit the Landlord to enter
      upon the Leased Premises promptly and without any inconvenience in the
      absence of the Tenant from the Leased Premises.

                                     --------------
[INITIALS]  [INITIALS]  [INITIALS]   RUDERMAN, SHAW
                                     --------------

<PAGE>

                                     - 29 -

SECTION 20.07 QUALITY OF AIR

      The Landlord and Tenant acknowledge that the Landlord has provided to the
      Tenant a letter from the Landlord's Consulting Professional Engineers,
      M.V. Shore Associates (1993) Limited, dated May 30, 1995 regarding the
      ability of the heating ventilating and air-conditioning system (the "HVAC
      System") to satisfy the Tenant's proposed requirements, and confirming the
      upgrading work being carried out to the HVAC System. The Landlord and
      Tenant further acknowledge that the said letter was prepared by the said
      engineers after a review of the Tenant's design proposals for the space
      including details of the Tenant's space plan, the laboratory equipment,
      instruments, and fumehoods intended to be installed by the Tenant in the
      Leased Premises and the type of research chemicals and materials to be
      handled by the Tenant. A copy of said letter is attached as Schedule "C"
      to this Lease.

      The Landlord covenants and agrees that it shall at its own expense
      forthwith commence and diligently proceed with the completion of the
      upgrading of HVAC System as described in the said letter attached as
      Schedule "C". Subject to the provisions of paragraph 9.02(c) hereof,
      Landlord covenants that throughout the term and any renewal thereof it
      will operate and maintain the existing HVAC System serving the Leased
      Premises, as upgraded in accordance with the said letter attached as
      Schedule "C", in reasonable condition and repair. The Landlord further
      covenants that provided that the Tenant's leasehold improvements, space
      plan, and equipment are not altered from those described to M.V. Shore
      Associates (1993) Limited so as to place a greater load on the HVAC System
      and provided that the occupany of the Leased Premises does not exceed the
      maximum number of persons per square foot permitted by the Building Code
      as of the date of this lease, then the Landlord shall cause the HVAC
      System to maintain within the Leased Premises the level of air quality
      temperature and relative humidity described in the said letter attached as
      Schedule "C".

      The Tenant acknowledges that the air quality standards referred to in the
      letter attached as Schedule "C" relate to quantities of fresh air and not
      to odour containment, which is the responsibility of the Tenant. The
      Tenant covenants and agrees that without limiting its other obligations
      under the lease all odour or fume generating activity on the Leased
      Premises will be performed under fumehoods with sufficient capacity to
      contain the escape or migration of contaminants and odours form the Leased
      Premises, that it will at all times maintain its fumehoods and chemical
      neutralizing system in good working order, and that all of its activities
      in or about the Leased Premises, including the handling, transportation
      and storage of chemicals and other materials used in its business, shall
      be carried out in accordance with all laws and regulations and in such a
      manner as to prevent the escape or migration (whether airborne, personel
      borne, or otherwise) of odours and contaminents from the Leased Premises.

SECTION 20.08 LANDLORD'S WORK, MERGER

      The Landlord and Tenant acknowledge that this Lease has been entered into
      pursuant to an Offer to Lease dated the 20th day of February, 1995 between
      the Landlord and Tenant relating to the Leased Premises (hereinafter
      referred to as the "Offer"). The Landlord and Tenant covenant and agree
      that upon execution of this Lease by the Landlord and Tenant all
      covenants, agreements and provisions contained in the Offer shall be
      extinguished and shall merge with and be superseded by this Lease, save
      and except for the covenants, agreements and provisions of paragraph 9 of
      the Offer which relate to the Landlord's Work to the Leased Premises,
      which shall survive the execution of this Lease. The said Landlord's Work
      will be constructed to a building standard turnkey finish level. All
      upgrades above the said building standard will be completed by the Tenant
      at its sole expense.

                                     --------------
[INITIALS]  [INITIALS]  [INITIALS]   RUDERMAN, SHAW
                                     --------------

<PAGE>
                                     - 30 -

SECTION 20.09 CHANGES TO STANDARD FORM LEASE

      The Landlord and Tenant acknowledge that certain changes have been made to
the Landlord's Standard Form of Lease by deleting certain covenants, agreements
and provisions contained in the Landlord's Standard Form of Lease, and by typing
in changes to the Standard Form, by inserting pages 5A, 5B, 6A and 6B, and by
adding Articles 19 and 20 (hereinafter collectively referred to as "Lease
Changes"). The Landlord and Tenant agree that in the event of any inconsistency
between the provisions of the Landlord's Standard Form of Lease and the Lease
Changes, the Lease Changes shall prevail.

            IN WITNESS WHEREOF the parties hereto have executed this Indenture.

SIGNED, SEALED AND DELIVERED

in the presence of:

                                          LuCLIFF COMPANY LIMITED

                                          By: /s/ [ILLEGIBLE]
                                              ----------------------------

                                          VISIBLE GENETICS INC.

                                          By: /s/ John Stevens
                                              ----------------------------
                                              President

                                          By: /s/ [ILLEGIBLE]
                                              ----------------------------
                                              Chief Financial Officer

                                     --------------
[INITIALS]  [INITIALS]  [INITIALS]   RUDERMAN, SHAW
                                     --------------

<PAGE>

                                  SCHEDULE "A"

                                   FLOOR PLAN

                                [GRAPHIC OMITTED]

                                     --------------
[INITIALS]  [INITIALS]  [INITIALS]   RUDERMAN, SHAW
                                     --------------

<PAGE>

                                  SCHEDULE "B"

                             RULES AND REGULATIONS

1.    The Tenant shall not permit any cooking in the Leased Premises without the
      written consent of the Landlord, provided that the Tenant shall be
      entitled to boil water in the Leased Premises.

2.    All persons entering and leaving the Building at any time other than
      during the normal business hours shall register in the books kept by the
      Landlord at or near the night entrance and the Landlord will have the
      right to prevent any person from entering or leaving the Building unless
      provided with a key to the premises to which such person seeks entrance or
      a pass in a form to be approved by the Landlord. Any person found in the
      building at such time without keys or passes will be subject to the
      surveillance of the employees and agents of the Landlord. The Landlord
      shall be under no responsibility for failure to enforce this rule.

3.    The sidewalks, entries, passages, elevators and staircases shall not be
      obstructed or used by the Tenant, its agents, servants, contractors,
      invitees or employees for any purpose other than ingress to the egress
      from the offices. The Landlord reserves entire control of all parts of the
      Building employed for the common benefit of the tenants and without
      restricting the generality of the foregoing, the sidewalks, entries,
      corridors and passages not within the Leased Premise, washrooms,
      lavatories, air-conditioning closets, fan rooms, janitor's closets,
      electrical closets and other closets, stairs, escalators, elevators,
      elevator shafts, flues, stacks, pipe shafts and ducts and shall have the
      right to place such signs and appliances therein, as it may deem advisable
      provided that the ingress to and egress from the Leased Premises is not
      unduly impaired thereby.

4.    The Tenant, its agents, servants, contractors, invitees or employees,
      shall not bring in or take out, position, construct, install or move any
      safe, business machine or other heavy office equipment without first
      obtaining the consent in writing of the Landlord. In giving such consent,
      the Landlord shall have the right in its sole discretion, to prescribe the
      weight permitted and the position thereof, and the use and design of
      planks, skids, or platforms to distribute the weight thereof. All damage
      done to the Building by moving or using any such heavy equipment or
      furniture shall be repaired at the expense of the Tenant. The moving of
      all heavy equipment or other office equipment or furniture shall occur
      only between 6:00 p.m. and 8:00 a.m. or any other time consented to by the
      Landlord and the persons employed to move the same in and out of the
      Building must be acceptable to the Landlord and the Landlord shall
      prescribe the means of access. Safes and other heavy office equipment will
      be moved through the halls and corridors only upon steel bearing plates.
      No freight of bulky matter of any description will be received into the
      Building or carried in the elevators except during hours approved by the
      Landlord.

5.    The Tenant shall not place or cause to be placed any additional locks upon
      any doors of the Leased Premises without the approval of the Landlord and
      subject to any conditions imposed by the Landlord. Two keys shall be
      supplied to the Landlord for each entrance door to the Leased Premises. If
      additional keys are requested, they must be paid for by the Tenant.

6.    The water closets and other water apparatus shall not be used for any
      purpose other than those for which they were constructed, and no
      sweepings, rubbish, rags, ashes or other substances shall be thrown
      therein. Any damage resulting by misuse shall be borne by the Tenant by
      whom or by whose agents, servants, or employees the same is caused. Tenant
      shall not let the water run unless it is in actual use, and shall not
      deface or mark any part of the Building, or drive nails, spikes, hooks, or
      screws into the walls or woodwork of the Building.

                                     --------------
[INITIALS]  [INITIALS]  [INITIALS]   RUDERMAN, SHAW
                                     --------------

<PAGE>
                                      - 2 -

7.    No Tenant shall do or permit anything to be done in the Leased Premises,
      or bring to keep anything therein which will in any way increase the risk
      of fire or the rate of fire insurance on the said Building or on property
      kept therein, or obstruct or interfere with the rights of other tenants or
      in any way injure or annoy them or the Landlord, or violate or act at
      variance with the laws relating to fires or with the regulations of the
      Fire Department, or with any insurance upon said Building or any part
      thereof, or violate or act in conflict with any of the rules and
      ordinances of the Board of Health or with any statute or municipal by-law.

8.    No one shall use the Leased Premises for sleeping apartments or
      residential purposes, of for the storage of personal effects or articles
      other than those required for business purposes.

9.    The Tenant shall permit window cleaners to clean the windows of the Leased
      Premises during normal business hours.

10.   Canvassing, soliciting and peddling in or about the Building and in the
      parking area are prohibited.

11.   In order that the Leased Premises may be kept in good state of
      preservation and cleanliness, each Tenant shall, during the continuance of
      this Lease, permit the janitor or caretaker to take charge of and clean
      the Leased Premises, but the Landlord shall not be responsible for any act
      of omission or commission on the part of the person or persons employed to
      perform such work. The Tenant shall not employ any person other than the
      janitor or caretaker of the Landlord for the purpose of cleaning or taking
      charge of the Leased Premises.

12.   The Tenant shall not receive or ship articles of any kind except through
      service access facilities and at hours designated by the Landlord and
      under the supervision of the Landlord.

13.   It shall be the duty of the respective tenants to assist and co-operate
      with the Landlord in preventing injury to the premises demised to them
      respectively.

14.   Any alterations, additions or changes made in the permanent partitions or
      divisions of the rooms furnished or supplied by the Landlord during the
      currency of the same shall, if made at the request of the Tenant, be at
      the expense of the Tenant but the same shall be subject to the approval
      and direction of the Landlord.

15.   No inflammable oils or other inflammable, dangerous, or explosive
      materials save those approved in writing by the Landlord's insurers shall
      be kept or permitted to be kept in the Leased Premises.

16.   No bicycles or other vehicles shall be brought within the Building.

17.   No animals or birds shall be brought into the Building.

18.   The Tenant shall not install or permit the installation or use of any
      machine dispensing goods for sale in the Leased Premises or the Building
      without the approval of the Landlord or in contravention of any
      regulations fixed or to be fixed by the Landlord. Only persons authorized
      by the Landlord shall be permitted to deliver or to use the elevators in
      the Building for the purpose of delivering food or beverages to the Leased
      Premises.

19.   If the Tenant desires telegraphic or telephonic connections, the Landlord
      will direct the electricians as to where and how the wires are to be
      introduced and without such directions no boring or cutting for wires will
      be permitted. No gas pipe or electric wire will permitted which has not
      been ordered or authorized in writing by the

                                     --------------
[INITIALS]  [INITIALS]  [INITIALS]   RUDERMAN, SHAW
                                     --------------

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00003-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00003-of-00352.parquet"}]]