Document:

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                                                                  Exhibit 10.2

                               OFFICE SPACE LEASE

                              HASEKO CORPORATION,
                             a Japanese corporation

                                   (Landlord)

                        PARAGON MANAGEMENT SYSTEMS, INC.,
                            a California corporation

                                    (Tenant)

                          5933 West Century Boulevard
                            Los Angeles, California
                                   Suite 1220

                            (Building and Premises)

                                 June 20, 1996

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                               TABLE OF CONTENTS

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<S>                                                                              <C>
Basic Lease Information...........................................................1
 1. PREMISES......................................................................2
 2. TERM; COMPLETION OF IMPROVEMENTS..............................................2
 3. Intentionally omitted.........................................................3
 4. RENTAL PAYMENTS...............................................................3
 5. BASE MONTHLY RENT.............................................................4
 6. TENANT'S SHARE OF INCREASED COSTS.............................................4
 7. USE...........................................................................6
 8. SERVICES......................................................................6
 9. TAXES PAYABLE BY TENANT.......................................................7
10. IMPROVEMENTS, REPAIRS AND ALTERATIONS.........................................7
11. LIENS.........................................................................8
12. DAMAGE AND DESTRUCTION........................................................8
13. WAIVER OF SUBROGATION.........................................................8
14. INDEMNIFICATION...............................................................9
15. COMPLIANCE WITH LAW...........................................................9
16. INSURANCE.....................................................................9
17. ASSIGNMENT AND SUBLETTING....................................................10
18. RULES........................................................................11
19. ENTRY BY LANDLORD............................................................11
20. EVENTS OF DEFAULT............................................................11
21. TERMINATION UPON DEFAULT.....................................................12
22. CONTINUATION AFTER DEFAULT...................................................12
23. OTHER RELIEF.................................................................12
24. PARKING......................................................................12
25. RIGHT TO RELOCATE............................................................13
26. TRADE FIXTURES...............................................................14
27. SUCCESSORS AND ASSIGNS.......................................................14
28. TIME.........................................................................14
29. LANDLORD'S DEFAULT...........................................................14
30. TENANT'S LEASE OF OTHER SPACE IN BUILDING....................................14
31. LANDLORD'S RIGHT TO CURE DEFAULTS............................................14
32. ATTORNEYS' FEES..............................................................15
33. EMINENT DOMAIN...............................................................15
34. SUBORDINATION................................................................15
35. NO MERGER....................................................................16
36. CONVEYANCE BY LANDLORD.......................................................16
37. ESTOPPEL CERTIFICATE.........................................................16
38. NO LIGHT, AIR OR VIEW EASEMENT...............................................16
39. HOLDING OVER.................................................................16
40. ABANDONMENT..................................................................16
41. SECURITY DEPOSIT.............................................................17
42. WAIVER.......................................................................17
43. NOTICES......................................................................17
44. COMPLETE AGREEMENT...........................................................17
45. CORPORATE AUTHORITY..........................................................17
46. HAZARDOUS MATERIALS..........................................................18
47. ADDITIONAL PROVISIONS........................................................18
48. MISCELLANEOUS................................................................18
49. EXHIBITS AND RIDER...........................................................19
50. LEASE AS SUB-SUBLEASE........................................................20

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         EXHIBIT "A" SITE PLAN OF PREMISES
         EXHIBIT "B" INTENTIONALLY OMITTED
         EXHIBIT "C" TERM COMMENCEMENT LETTER
         EXHIBIT "D" RULES AND REGULATIONS

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                            BASIC LEASE INFORMATION

DATE:               June 20, 1996

BUILDING:           5933 West Century Boulevard
                    Los Angeles, California

LANDLORD:           HASEKO CORPORATION, a Japanese corporation

TENANT:             PARAGON MANAGEMENT SYSTEMS, INC., a California corporation

LEASE SECTION

Section 1           PREMISES: Suite 1220 on the 12th floor, as more
                    particularly described on EXHIBIT "A" attached hereto

Section 2           TARGET COMMENCEMENT DATE: July 1, 1996

Section 2           TERM EXPIRATION: 36 months after the actual Commencement
                    Date (defined in Section 2)

Section 4           BASE MONTHLY RENT: $3,115.35

Section 6           TENANT'S SHARE OF INCREASED COSTS:
Paragraphs          1.435% (based on 206,770 of rentable square feet
(a) and (b)         in the Building)

Section 41          SECURITY DEPOSIT: $3,115.35

Section 43          LANDLORD'S ADDRESS FOR NOTICES:

                    Haseko Corporation
                    c/o Argus Commercial
                    350 South Figueroa Street, Suite 141
                    Los Angeles, California 90071

                    TENANT'S ADDRESS FOR NOTICES:

                    Paragon Management Services
                    5933 West Century Boulevard, Suite 1220
                    Los Angeles, California 90045

Section 49          EXHIBITS AND RIDER: Exhibits A, C and D and a Rider are
attached hereto and are incorporated herein by reference

     The Sections of the Lease identified above are the Sections which refer
to the Basic Lease Information and each Section shall be deemed to
incorporate by reference the applicable Basic Lease Information. In the event
of any conflict between the foregoing Basic Lease Information and any of the
terms of the Lease, the terms of the Lease shall control.

                                       1

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                             OFFICE SPACE LEASE

      THIS OFFICE SPACE LEASE ("Lease"), dated June 20, 1996, is entered
into by and between HASEKO CORPORATION, a Japanese corporation, as Landlord,
and PARAGON MANAGEMENT SYSTEMS, INC., a California corporation, as Tenant,
with the consent of ROYAL INVESTMENT SYSTEM PARTNERSHIP (01), as Master
Landlord.

1.  PREMISES.

          Landlord hereby leases to Tenant, and Tenant hereby hires from
Landlord, upon the terms and conditions hereinafter set forth, those certain
premises ("Premises") outlined on EXHIBIT "A" attached hereto.  The Premises
are located on the 12th floor of the Building. As used in this Lease, the
term "Building" shall mean the building described in the Basic Lease
Information attached hereto and all common areas, parking areas and walkways
serving said building and all areas adjacent to said building which are owned
by Landlord. Landlord and Tenant hereby irrevocably stipulate and agree that
the rentable area of the Building is 206,770. Landlord and Tenant hereby
acknowledge that the rentable area of the Premises is 2,967; however, during
the first thirty (30) days after the Commencement Date, Tenant may cause
Tenant's space planner to re-measure the rentable area of the Premises and,
if Tenant's re-measurement, as verified by Landlord's space planner, shows
that the rentable area of the Premises is greater or less than 2,967 rentable
square feet then Landlord and Tenant shall execute an amendment to this Lease
adjusting the amount of Base Monthly Rent, the amount of the security
deposit, and Tenant's Share of Increased Costs based upon the re-measurement
of the rentable area of the Premises.  If Tenant does not submit a
re-measurement by Tenant's space planner to Landlord for verification prior to
the end of the thirty (30) day period after the Commencement Date, then
Tenant shall be deemed to have irrevocably stipulated and agreed that the
rentable area of the Premises is 2,967.

          The Premises shall include the right to use, in common with others,
walkways, lobbies, entrances, stairs, elevators and other public portions of
the Building (collectively referred to as the "Common Areas"). All of the
outside walls and windows of the Premises and any space in the Premises used
for shafts, stacks, pipes, conduits, ducts, and electric or other Building
facilities, and the use thereof and access thereto through the Premises for
the purposes of operation, maintenance and repairs are reserved to Landlord.

          For purposes of this Lease, the term "rentable area" shall mean
113% of the "usable area." The term "usable area" shall mean all floor area
in the Premises, measured to the inside glass surface of the outer building
walls, to the interior side of corridors and other permanent partitions, and
to the center of partitions that separate the Premises from adjoining tenant
spaces, without deduction for columns and projections necessary to the
Building.

2.    TERM; COMPLETION OF IMPROVEMENTS

          The term ("Term") of this Lease shall be for 36 months and is
tentatively scheduled to commence on July 1, 1996 ("Target Commencement
Date"). The Target Commencement Date is based upon the lease commencing five
(5) business days after lease execution. If Landlord, for any reason
whatsoever, cannot deliver possession of the Premises to Tenant on the
Target Commencement Date, this Lease shall not be voidable, nor shall
Landlord or its agents be liable to Tenant for any loss or damage resulting
therefrom; however, if Landlord is unable for any reason to deliver the
Premises to Tenant by the date which is five (5) business days after
execution of this Lease, then Tenant may terminate this Lease by written
notice to Landlord given within five (5) business days after the end of said
five (5) business day period and upon such termination, Landlord shall refund
to Tenant all funds paid to or deposited with Landlord by Tenant under this
Lease.

          Tenant is leasing the Premises in its current "as is" condition
except that Landlord shall provide building standard window coverings
(currently in the Premises) and Landlord shall steam clean the existing
carpet prior to Tenant's occupancy thereof and, within five (5) business days
after the Commencement Date, Tenant may deliver a written punch list to
Landlord listing

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defective light fixtures and electrical outlets, and provided such a
punch-list is timely provided to Landlord, then Landlord shall use
reasonable efforts to replace the defective fixtures or outlets with
Building standard fixtures and outlets as soon as reasonably possible.
Promptly after Landlord tenders possession of the Premises to Tenant, Tenant
shall promptly and diligently install its trade fixtures and equipment in the
Premises. The Term shall commence on the later of the date that is five (5)
business days after lease execution, or the date on which Landlord delivers
possession of the Premises to Tenant ("Commencement Date"). The Commencement
Date shall be confirmed in writing by the parties in the form set forth in
EXHIBIT "C" attached hereto promptly after the Commencement Date, and such
written confirmation shall be attached hereto. Landlord shall clean the
Premises, per Building standards, prior to and immediately after Tenant takes
occupancy.

          Tenant shall have one option to extend the term of the Lease for a
period of three (3) years (an "Extension Term"), provided that Tenant is not
then in default under any of the terms or provisions of the Lease and also
provided that Tenant has not been in default on three (3) or more separate
occasions during the term of this Lease. Tenant may exercise the extension
option by giving written notice of Tenant's intent to exercise the option to
Landlord at least one hundred eighty (180) days prior to the expiration of
the initial Term but no sooner than twelve (12) months prior to the
expiration of the initial Lease Term. At the commencement of the Extension
Term, the Base Rent shall be adjusted to be equal to ninety-five percent
(95%) of the then fair market rental value of the Premises, but no less than
the rate in effect immediately prior to the expiration of the Term and said
adjustment may include future adjustments to Base Rent if such future
adjustments are then being included in office lease transactions. If Landlord
and Tenant cannot agree upon the fair market rental value of the Premises
within sixty (60) days after Landlord's receipt of Tenant's notice exercising
the option contained herein, Landlord and Tenant shall each appoint a
"Qualified Arbitrator" (as defined below) within seven (7) days after the
expiration of the aforementioned sixty (60) day period. Such arbitrators
shall confer and select a third Qualified Arbitrator (the "Neutral
Arbitrator"), who alone shall determine the fair market rental value of the
Premises. Should the two (2) arbitrators fail to select a Third Qualified
Arbitrator to act as the Neutral Arbitrator within seven (7) days, the
Neutral Arbitrator shall be designated pursuant to California Code of Civil
Procedure Section 1281.6, as that Section may be amended or redesignated from
time to time provided, however, that the Neutral Arbitrator so appointed must
be a Qualified Arbitrator. The determination of the Neutral Arbitrator shall
be binding upon Landlord and Tenant. Landlord and Tenant shall bear the cost
of the arbitrator appointed by such party and shall equally bear the cost of
the Neutral Arbitrator. As used herein, the term "Qualified Arbitrator" shall
mean a person who is an appraiser or real estate broker licensed by the State
of California and who has not less than five (5) years' experience in
commercial leasing or commercial real estate appraising.

3.  FAILURE TO OCCUPY IMPROVED SPACE [INTENTIONALLY OMITTED]

4.  RENTAL PAYMENTS.

          Tenant shall pay base rent ("Base Rent") for the Premises to
Landlord throughout the Term on or before the first day of each calendar
month during the Term, without deduction or offset, in amount(s) set forth in
Section 5 hereof, as adjusted in accordance with Section 6, except that Tenant
shall pay the first monthly installment concurrently with Tenant's execution
hereof. If the Term commences on a day other than the first day of a calendar
month, then the Base Rent for the first partial month shall be equitably
prorated. All sums payable by Tenant to Landlord hereunder shall be paid to
Landlord, without deduction or offset, in lawful money of the United States
of America, addressed to Landlord c/o Argus Commercial, 350 S. Figueroa
Street, Suite 141, Los Angeles, California, 90071, or to such other person or
at such other place as Landlord may from time to time designate in writing.
If any installment of Base Rent is not received by Landlord within ten (10)
days after the date such installment is due, Tenant shall pay a late charge
equal to eight percent (8%) of such installment and the installment and late
charge shall bear interest at the highest rate permitted by law. Tenant
recognizes and agrees that the late charge is intended to compensate Landlord
for and is a reasonable estimate of the administrative, legal, bookkeeping and
other expenses which will result from such delinquent rent payment, which
costs and expenses would be extremely difficult and impractical to calculate.

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          Any payment by Tenant or receipt by Landlord of a lesser amount than
stipulated herein for Base Rent, additional rent or any other charge
hereunder shall be deemed payment of the earliest stipulated rent, additional
rent or other charge then due. No endorsement or statement on a check and no
letter accompanying any check or payment shall be deemed an accord and
satisfaction. Landlord may accept any check or payment without prejudice to
Landlord's rights to recover the balance of rent, additional rent or other
charges then due or to pursue any other remedy set forth in this Lease or
available at law or in equity.

5.  BASE MONTHLY RENT

                               Rent Per
                               Rentable
                 Month        Square Foot           Monthly Rent
                 -----        -----------           ------------
                 1-36            $1.05                $3,115.35

          Notwithstanding the foregoing, and except for periods during which
Tenant is in default, Base Rent shall be abated for the 2, 13, and 25 months
of the Term.

6.   TENANT'S SHARE OF INCREASED COSTS

          (a)  The Base Rent payable during each calendar year or part
thereof during the Term, after the calendar year 1996 (the calendar year 1996
being hereinafter referred to as the "Base Year") shall be increased by
Tenant's Share of Increased Costs, as specified in the Basic Lease
Information, of the total dollar increase, if any, in Operating Expenses paid
or incurred by Landlord in the Base Year. However, Tenant shall not be
obligated for Tenant's Share of Increased Costs for the first twelve (12)
months of the initial Lease Term. As used herein "Operating Expenses" means
all costs related to the administration, management, operation and
maintenance of the Building, including without limitation, wages, salaries
and other payroll costs and expenses, janitorial maintenance, guard and other
services, Building office rent or rental value, power, water, waste disposal
and other utilities, materials and supplies, maintenance and repairs,
insurance, and depreciation on personal property and costs of making
improvements to the Building or Common Areas that are required by laws (and
amendments to laws) enacted after the Commencement Date, including, without
limitation, improvements required by the amendments or modifications to
Americans With Disabilities Act (42 U.S.C. Section 12181 et SEQ.) enacted
after the Commencement Date; provided, however, that Operating Expenses
shall not include taxes covered under paragraph (b) below, depreciation costs
of tenants' improvements, real estate brokers' commissions, interest and,
except as set forth in Section 6(f) below, capital items. Additionally,
Operating Expenses shall shall not include Landlord's general corporate
overhead and general administrative expenses; advertising and promotional
expenses; fines, penalties or other impositions incurred as a result of
Landlord's failure to make tax payments when due or to comply with laws,
ordinances and regulations applicable to the Building; and any other expenses
which would not normally be treated as an operating expense under generally
accepted accounting principles, consistently applied, by landlords of
comparable buildings. Actual Operating Expenses for both the Base Year and
each subsequent calendar year shall be adjusted to equal Landlord's
reasonable estimate of Operating Expenses had ninety five percent (95%) of
the total rentable area of the Building been occupied.

          (b)  The Base Rent payable during each calendar year, or part
thereof during the Term, after the calendar year 1996 (the "Base Tax
Year"), shall also be increased by Tenant's Share of Increased Costs, as
specified in the Basic Lease Information, of the total dollar increase, if
any, in real and personal property taxes, rental tax, gross receipts tax and
any tax, tax assessment, special assessment, charges or other imposition of
any nature whatsoever levied wholly or partly in lieu thereof, whether or not
such tax, tax assessment, special assessment, charge or other imposition is
presently within the contemplation of the parties, levied against the
Building and fixtures and other property used in connection with the
operation or maintenance of the Building for such calendar year (excluding,
during the initial Term of this Lease only, increases in property taxes in
excess of two percent (2%) per annum caused by the sale of the Building
during the initial Term of this Lease) over such taxes for the Base Tax Year.
However,

                                       4

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Tenant shall not be obligated to pay any such taxes during the first twelve
(12) months of the initial Lease Term.

          (c)  Prior to the start of each calendar year or as soon thereafter
as practicable, Landlord shall give Tenant written notice of its estimate of
amounts payable under paragraphs (a) and (b) above for the ensuing calendar
year.  On or before the first day of each month during the ensuing calendar
year, Tenant shall pay to Landlord one-twelfth (1/12) of such estimated
amounts, provided that if such notice is not given in December.  Tenant shall
continue to pay on the basis of the prior year's estimate until the month
after such notice is given.  If at any time or times it appears to Landlord
that the amounts payable under either paragraph (a) and (b) above for the
current calendar year will vary from its estimate by more than five percent
(5%), Landlord shall, by written notice to Tenant, revise its estimate for
such year, and subsequent payments by Tenant for such year shall be based
upon such revised estimate.

          (d)  Within one hundred eighty (180) days after the close of each
calendar year or as soon after such one hundred eighty (180) day period as
practicable, Landlord shall deliver to Tenant a statement of amounts payable
under paragraphs (a) and (b) above for such calendar year.  If such statement
shows an amount owing by Tenant that is less than the estimated payments for
such calendar year previously made by Tenant, Tenant shall be given a credit
towards future rents owed in an amount equivalent to the overpayment (or, if
this Lease shall have expired or terminated, Landlord shall refund the
overpayment to Tenant).  If such statement shows an amount owing by Tenant
that is more than the estimated payment for such calendar year previously
made by Tenant, Tenant shall pay the deficiency to Landlord within thirty
(30) days after delivery of the statement.

          (e)  If, for any reason, this Lease shall terminate on a day
other than the last day of a calendar year, the amount of increase (if any)
in rent payable by Tenant applicable to the calendar year in which such
termination shall occur shall be equitably prorated on the basis which the
number of days from the commencement of such calendar year to and including
such termination date bears to three hundred sixty-five (365).

          (f)  Tenant shall be charged for the amortization, with a market
rate of interest, of the cost of installation of capital investment items
that are for the purpose of reducing operating costs or which result in
energy conservation or that may be required by applicable law or
governmental authority; however, in no event may the amount included in
Operating Expenses of capital investment items that are for the purpose of
reducing operating costs or which result in energy conservation exceed the
amount of the actual applicable reduction in Operating Expenses and
applicable reduction in energy costs (in each case, as reasonably determined
by Landlord).  All such costs shall be amortized over the reasonable life of
the capital investment items, with the reasonable life and amortization
schedule to be determined in accordance with sound management accounting
principles.

          (g)  All amounts payable under this Section 6 shall be considered
additional rent.

          (h)  Upon reasonable advance written notice by Tenant to Landlord,
given not more often than once per statement described in Subsection 6(d)
above and within one hundred and twenty (120) days after Tenant's receipt of
the statement described in Subsection 6(d) above, Tenant shall be permitted
to examine the books and records in Landlord's possession which are pertinent
to the Operating Expenses and Taxes described in such statement.  Such
examination shall be conducted at Tenant's sole expense and at Landlord's
office or at such other place where such books and records are commonly kept
by Landlord (in either Los Angeles County or Orange County), and shall be
conducted so as not to interfere with Landlord's normal business operations.
If Tenant fails to conduct such examination within one hundred and twenty
(120) days after its receipt of a statement as set forth above, then Tenant's
right to conduct such examination shall be deemed waived with respect to such
statement.  If such examination reveals an overpayment of Operating Expenses
or Taxes for the period covered by such statement, then, provided Landlord
does not reasonably dispute the results thereof, Landlord shall credit such
overpayment against the next monthly rent payment of Tenant, or if the Term
hereof has expired, Landlord shall promptly refund the overpayment to Tenant.
If such examination reveals an

                                       5
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underpayment of Operating Expenses or Taxes for the period covered by such
statement, then Tenant shall pay the same with its next monthly rent payment,
or if the term hereof has expired, Tenant shall pay the same within fifteen
(15) days after receipt of the examination results.  If Tenant's examination
reveals an overstatement of Operating Expenses of three percent (3%) or more,
then the reasonable costs and expenses of Tenant's examination shall be paid
by Landlord.

7.  USE

          (a)  The Premises shall be used for general office purposes and for
no other purpose without the written consent of Landlord.  Tenant shall not
do or permit to be done in or about the Premises, nor bring or keep or permit
to be brought or kept therein, anything which is prohibited by or will in any
way conflict with any law, statute, ordinance or governmental rule or
regulation now in force or which may hereafter be enacted or promulgated or
which is prohibited by the standard form of fire insurance policy, or will in
any way increase the existing rate of or affect any fire or other insurance
upon the Building or any of its contents, or cause a cancellation of any
insurance policy covering the Building or any part thereof or any of its
contents.  Tenant shall not do or permit anything to be done in or about the
Premises which will in any way obstruct or interfere with the rights of other
tenants of the Building, or injure or annoy them, or use or allow the
Premises to be used for any improper, immoral, unlawful or objectionable
purpose, nor shall Tenant cause, maintain or permit any nuisance in, on or
about the Premises or commit or suffer to be committed any waste in, on or
about the Premises.

          (b)  Tenant shall not use the name of the Building or any similar
name in connection with any business carried on by Tenant (except as Tenant's
address) without written consent of Landlord which Landlord may withhold in
its sole and absolute discretion.

          (c)  Tenant acknowledges that neither Landlord nor any agent of
Landlord has made any representation or warranty as to the suitability of the
Premises for the conduct of Tenant's business, nor whether said business is
permitted by law.

8.  SERVICES

          (a)  Landlord shall maintain the public and common areas of the
Building, such as lobbies, stairs, elevators, corridors and restrooms in
reasonably good order and condition except for damage occasioned by the act
of Tenant, which damage shall be repaired by Landlord at Tenant's expense.

          (b)  Subject to events beyond Landlord's control and subject to
Building security policies, Tenant will have access to the Premises
twenty-four (24) hours a day, seven (7) days a week.  Landlord shall furnish
the Premises with (i) 8 watts/sq. ft. of electricity for lighting and the
operation of office machines, (ii) heat and .8 CFM/sq. ft. of air
conditioning to the extent reasonably required for the comfortable occupation
of the Premises during the reasonable and usual business hours of 8:00 a.m.
to 6:00 p.m., Monday through Friday, and between the hours of 8:00 a.m. and
1:00 p.m. on Saturday (exclusive of Sundays and Holidays) or such shorter
period specified or prescribed by any applicable policies or regulations
adopted by any utility or government agency, (iii) elevator service, (iv)
lighting replacement (for building standard lights), (v) restroom supplies,
and (vi) daily janitor service five nights per week (exclusive of holidays)
furnished in the manner that such services are customarily furnished in
comparable office buildings in the Los Angeles area.  If Tenant requires any
utilities or services during times other than the business hours set forth in
item (ii) above, then Tenant shall promptly upon demand reimburse Landlord
for all costs of providing the same, as reasonably estimated by Landlord.
The initial charge for after-hours IIVAC shall be $50.00 per hour and such
charge may increase from time to time as determined by Landlord.  Landlord
shall not be in default hereunder or be liable for any damages directly or
indirectly resulting from, nor shall the rental herein reserved be abated by
reason of (1) the installation, use or interruption of use of any equipment
used for the furnishing of any of the foregoing services or of any phone
lines, (2) failure to furnish or delay in furnishing any such services when
such failure or delay is caused by repair, accident or any condition beyond
the reasonable control of Landlord or by the making of necessary repairs or
improvements to the Premises or to the Building, or (3) the limitation,
curtailment, rationing or restrictions on use of water, electricity, gas or
any other form of energy serving the Premises or

                                       6
<PAGE>

the Building.  Landlord shall use reasonable efforts to remedy the
interruption in the furnishing of such services.  Landlord shall be entitled
to cooperate voluntarily in a reasonable manner with the efforts of
national, state or local agencies or utilities suppliers in reducing energy
or other resource consumption.

          (c)  Whenever heat generating machines or equipment or lighting
other than Building standard lights are used in the Premises by Tenant which
affect the temperature otherwise maintained by the air conditioning system,
Landlord shall have the right to install supplementary air conditioning units
in the Premises, and the cost thereof, including the cost of installation and
the cost of operation and maintenance thereof, shall be paid by Tenant to
Landlord upon billing by Landlord.  If Tenant installs lighting or equipment
requiring power in excess of that required for normal lighting or desk-top
office equipment or normal copying equipment, Tenant shall pay for the costs
of such excess power as additional rent, together with the cost of installing
any additional risers or other facilities that may be necessary to furnish
such excess power to the Premises.

9.  TAXES PAYABLE BY TENANT

          In addition to the monthly rental and other changes to be paid by
Tenant hereunder, Tenant shall reimburse Landlord upon demand for any and all
taxes payable by Landlord (other than net income taxes) whether or not now
customary or within the contemplation of the parties hereto:  (a) upon,
measured by or reasonably attributable to the cost or value of Tenant's
equipment, furniture, fixtures and other personal property located in the
Premises or by the cost or value of any leasehold improvements made in or to
the Premises by or for Tenant, other than improvements existing in the
Premises as of the Commencement Date regardless of whether title to such
improvements shall be in Tenant or Landlord: (b) upon or measured by the
monthly rental payable hereunder, including, without limitation, any gross
income tax or excise tax levied by the City of Los Angeles, the State of
California, the Federal Government or any other governmental body with
respect to the receipt of such rental (but not including Landlord's personal
income, franchise, estate or inheritance tax); (c) upon or with respect to
the possession, leasing, operation, management, maintenance, alteration,
repair, use or occupancy by Tenant of the Premises or any portion thereof;
(d) upon the transaction or any document to which Tenant is a party creating
or transferring an interest or an estate in the Premises.  In the event that
it shall not be lawful for Tenant so to reimburse Landlord, the monthly
rental payable to Landlord under this Lease shall be revised to net Landlord
the same net rental after imposition of any such tax upon Landlord as would
have been payable to Landlord prior to the imposition of any such tax.

10.  IMPROVEMENTS, REPAIRS AND ALTERATIONS

          Upon taking possession of the Premises as set forth herein, Tenant
shall be deemed to have accepted the Premises as being in tenantable and good
condition.  Tenant shall, at Tenant's sole cost and expense, repair and
maintain the Premises and every part thereof in good order and condition and
in compliance with all applicable laws, ordinances and regulations.  Without
limiting the foregoing, Tenant shall, at its sole cost and expense, cause the
Premises to comply at all times with the requirements of amendments to Title
III of the Americans With Disabilities Act (42 U.S.C. Section 12181 ET. SEQ.)
enacted after the Commencement Date, any and all regulations adopted pursuant
thereto, and any and all applicable laws, statutes, ordinances, rules and
regulations concerning public accommodations for disabled persons ("Laws")
enacted after the Commencement Date and amendments to Laws enacted after the
Commencement Date.  Notwithstanding the foregoing, and except for the
construction of a conference room in the Premises (which shall be done by
Landlord's contractor, with whom Landlord shall contract at Tenant's sole
cost and expense, and shall be subject to Landlord's prior written approval
of the plans and specifications therefor), Tenant shall not alter or change
the Premises or any other portion of the Building without the prior written
consent of Landlord, which shall not be withheld for changes required by law,
except that such changes shall be subject to Landlord's reasonable approval
of plans therefor and Landlord may elect to have its own contractors

                                       7

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perform any such alterations that affect Building systems, utilities or
structural portions and Tenant shall reimburse Landlord for the reasonable
costs thereof within five (5) business days after written demand. Tenant may
deliver a punch list to Landlord with respect to the conference room work
within five (5) business days after Landlord completes the conference room,
and provided such punch-list is timely delivered, Landlord shall use
reasonable efforts to correct all reasonable punch-list items within thirty
(30) days after receipt of the punch list. Tenant hereby waives the
provisions of Subdivision (1) of Section 1932 of the Civil Code of
California, and any successor or similar statute or law. All improvements,
repairs and/or alterations that may be required of or desired by Tenant shall
be done by Landlord's contractor but at the cost of Tenant. All improvements,
repairs, and alterations shall become the property of Landlord and shall
remain upon and be surrendered with the Premises; provided, however, that at
Landlord's option, Tenant shall, at Tenant's expense, when surrendering the
Premises, restore the same to their original condition. All damage or injury
done to the Premises by Tenant, or by any persons who may be in or upon the
Premises with the consent of Tenant, shall be paid for by Tenant except to
the extent covered by insurance (and not by any deductible). Tenant shall, at
the termination of this Lease by the expiration of time or otherwise,
surrender and deliver up the Premises to Landlord in as good condition as
when received by Tenant from Landlord, reasonable wear, tear and casualty
excepted. Tenant shall pay for all damage to the Building, as well as all
damage to tenants or occupants thereof, caused by Tenant's misuse or neglect
of the Premises or the appurtenances thereto.

11.  LIENS

     Tenant shall keep the Premises and the Building free from any
mechanic's and/or materialmens liens or other liens arising out of any work
performed, materials furnished or obligations incurred by Tenant. Tenant
shall notify Landlord at least seventy-two (72) hours prior to the
commencement of any work or activity on the Premises which may give rise to
such liens and Landlord shall have the right to post and keep posted on the
Premises any notices that may be provided by law or which Landlord may deem
to be proper for the protection of Landlord, the Premises and the Building
from such liens.

12.  DAMAGE AND DESTRUCTION

     If the Premises or the Building are completely destroyed by any cause
insured against under a standard form fire and extended coverage policy of
insurance, or are so damaged thereby that they are untenantable within one
hundred eighty (180) days after the date of such destruction or damage,
Landlord or Tenant may terminate this Lease by written notice to the other
given within five (5) business days after the end of the one-hundred and
eighty (180) day period. Within forty-five (45) days after the date of such
destruction or damage, Landlord shall give written notice to Tenant as to
whether or not the Premises will be rendered tenantable within one hundred
eighty (180) days after the date of such destruction or damage. If this Lease
is not terminated by Landlord or Tenant as set forth above, Landlord shall
with due diligence render the Premises tenantable to the extent insurance
proceeds are available therefor, and rent allocable to the untenantable
portion of the Premises shall be abated while such portion remains
untenantable. If the Premises or the Building are damaged or destroyed by any
cause other than a cause insured against under a standard form fire and
extended coverage policy of insurance, then Landlord may terminate this Lease
by written notice to Tenant given within thirty (30) days after such damage
or destruction, which termination shall be effective as of the date of the
notice.  Notwithstanding anything to the contrary herein, if the Building or
the Premises are damaged or destroyed within the last twelve (12) months of
the term of this Lease, then Landlord may terminate this Lease upon written
notice to Tenant given within thirty (30) business days after the damage or
destruction occurs.  Tenant hereby waives the provisions of Subdivision 2 of
Section 1932 of the California Civil Code and the provisions of Subdivision 4
of Section 1933 of the California Civil Code, and all successor and similar
statutes and laws and agrees that this Section 12 is intended to govern
damage and destruction to the Premises and the Building.

13.  WAIVER OF SUBROGATION

     Each party shall procure from its insurers under all policies of fire,
theft, workmen's compensation and other insurance now or hereafter existing
during the Term, and

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<PAGE>

purchased by it insuring or covering the Premises or any portion thereof or
operations therein, a waiver of all rights of subrogation which the insurer
might otherwise have. Each party hereby waives any claims for property damage
it may have against the other to the extent such damage is covered by the
insurance required under this Lease.

14.  INDEMNIFICATION

     Tenant hereby waives all claims against Landlord, its agents, employees
and contractors for damage to Tenant's business or any of Tenant's or any
other person's or entity's property or injury to or death of any person in,
upon or about the Premises arising at any time and from any cause other than
by reason of the negligent or willful act of Landlord, its agents, employees
or contractors. Tenant shall defend (by counsel acceptable to Landlord),
indemnify and hold Landlord harmless from and against any and all losses,
claims, damages, liabilities and costs and expenses (including, without
limitation, reasonable attorneys' fees and expenses) arising directly or
indirectly from Tenant's (or any of Tenant's subtenants', assignees',
agents', contractors', employees', invitees', licensces' or guests')
violation of any of the terms, covenants or conditions of this Lease or from
the use or occupancy of the Premises and/or Building, except for those
losses, claims, damages, liabilities and costs and expenses caused by the
willful misconduct or negligence of Landlord, its agents, employees or
contractors. Tenant's obligations and Landlord's rights under this Section 14
shall survive the expiration or earlier termination of this Lease.

15.  COMPLIANCE WITH LAW

     Tenant shall, at its sole cost and expense, promptly comply with all
laws, statutes, ordinances and governmental rules, regulations or
requirements now in force or which may hereafter be in force, with the
requirements of any board of fire underwriters or other similar body now or
hereafter constituted, with any directions or occupancy certificates issued
pursuant to any law by any public officer or officers, as well as the
provisions of all recorded documents affecting the Premises, insofar as any
thereof relate to or affect the condition, use or occupancy of the Premises,
or Tenant's business conducted therein, excluding structural changes that are
not required due to improvements made by or for Tenant or due to Tenant's
acts, but including alterations to the Premises required by amendments or
modifications to the Americans With Disabilities Act enacted after the
Commencement Date.

16.  INSURANCE

     (a)  Tenant shall, at its sole cost and expense, during the term of this
Lease, cause all improvements at any time located in the Premises (other than
the Building standard tenant improvements) and all equipment and fixtures from
time to time used or intended to be used in connection with the operation and
maintenance of the Premises, to be insured for the mutual benefit of Landlord
and Tenant against loss or damage by fire and against loss or damage by other
risks now or hereafter included in the Special Form insurance policy, in an
amount equal to the full insurable value thereof. All proceeds from such
insurance shall be used for the repair or replacement of such improvements,
equipment and fixtures.

     (b)  Notwithstanding any other provisions of this Lease, Tenant, at its
own expense, shall also maintain the following insurance coverage. All
coverage shall be primary and non-contributory over any insurance the
Landlord may elect to provide on his behalf. Upon the commencement of the
Term, and upon renewal of such insurance coverage, Tenant shall deliver to
the Landlord an original certificate of such insurance from the insurer
providing a minimum of thirty (30) days' notice of cancellation. All policies
of insurance required to be carried by Tenant under this Section 16 shall be in
form satisfactory to Landlord, shall be issued by responsible insurance
companies which are licensed to do business in the State of California, have
a Best's rating of a least A+ and have been approved in writing by Landlord.

          (1)  Worker's Compensation and Employer's Liability.  Tenant shall
maintain Worker's Compensation insurance sufficient to comply with all
applicable State and/or Federal laws and an Employer's Liability policy with
a limit of not less than $1,000,000.

                                       9

<PAGE>

          (2)  Commercial General Liability.  Tenant shall maintain a
Commercial General Liability policy with limits of liability not less than
$1,000,000 per occurrence and $1,000,000 general aggregate for Bodily Injury
and Property Damage. Such policy shall specifically name the Landlord as
additional insured. Landlord may, at its discretion, request evidence of
products insurance.

          (3)  Business Interruption.  Tenant shall also maintain a policy of
(or obtain an endorsement providing) business interruption insurance insuring
Tenant against losses from interruption of its use of the Premises for any
reason with coverage for a period of not less than one (1) year.

          (4)  Property Insurance.  Tenant shall maintain a special form
property insurance policy on all personal property and tenant improvements and
betterments for not less than ninety percent (90%) of the replacement  cost
of the same. Tenant's property policy shall not provide for a deductible in
excess of $5,000 without prior written approval of Landlord.

     (c)  Landlord shall maintain property insurance equal to one hundred
percent (100%) of the replacement cost of the Building but in no event shall
Landlord be required to maintain earthquake or flood insurance.

17.  ASSIGNMENT AND SUBLETTING

     Tenant shall not assign, mortgage, pledge or otherwise transfer this
Lease, or any interest therein, either voluntarily, involuntarily, or by
operation of law, and shall not sublet the Premises or any part thereof, or
any right or privilege appurtenant thereto, or suffer any other person (the
agents and employees of Tenant excepted) to occupy or use the Premises, or
any portion thereof, without the written consent of Landlord, which consent
shall not be unreasonably withheld; however, provided Tenant gives Landlord
at least ten (10) days' prior written notice thereof, Tenant may sublet the
Premises or assign this Lease to any entity which owns fifty percent (50%) or
more of Tenant or to any entity fifty percent (50%) or more of which is owned
by an entity which also owns fifty percent (50%) or more of Tenant or to an
entity fifty percent (50%) or more of which is owned by Tenant (each such
entity is referred to herein as an "Affiliate") and provided Tenant gives
Landlord at least ten (10) days' prior written notice thereof, Tenant may
assign this Lease in connection with a merger or consolidation of Tenant. If
Tenant is a corporation, then a change or changes in the ownership of Tenant,
whether voluntarily, involuntarily, or by operation of law, which
aggregate(s) fifty percent (50%) or more of total capital stock of Tenant or
fifty percent (50%) or more of voting capital stock of Tenant shall be deemed
an assignment of this Lease. A consent to one assignment, mortgage, pledge,
subletting, occupation, or use by any other person shall not relieve Tenant
from any obligation under this Lease and shall not be deemed to be a consent
to any subsequent assignment, mortgage, pledge, subletting, occupation or use
by another person. Any assignment, mortgage, pledge, subletting, occupation
or use without such consent shall be void, and shall, at the option of
Landlord, terminate this Lease. Tenant's request for Landlord's consent
pursuant to this Section 17 shall be submitted in writing at least twenty
(20) days prior to the date Tenant desires to secure such consent. Such
request shall be accompanied by all relevant information reasonably necessary
for Landlord to consider such request. Any request for Landlord's consent
pursuant to this Section 17 shall also be accompanied by a payment to
Landlord of $500.00 for the review, evaluation, and/or preparation of any
materials or documents.

     Fifty percent (50%) of any sums or other economic consideration paid to,
or paid for the benefit of, Tenant in any calendar month as a result of such
subletting (other than a subletting to an Affiliate, and except for the
rental or other payments received which are attributable to the amortization
of the cost of nonbuilding standard leasehold improvements made to the sublet
portion of the Premises at the cost of Tenant) whether denominated rentals
under the sublease or otherwise, which exceed in the aggregate the total sums
which Tenant is obligated to pay Landlord under this Lease (prorated to
reflect obligations allocable to that portion of the Premises subject to such
sublease) shall be payable to Landlord on a monthly basis promptly after
receipt by Tenant as additional rental under this Lease without affecting or
reducing any other obligation of Tenant hereunder.

                                       10

<PAGE>

          Whether or not Landlord's consent is required or obtained, no
subletting or assignment shall release Tenant of Tenant's obligations
hereunder or otherwise alter the primary liability of Tenant hereunder. The
acceptance of rent or any other sum by Landlord from any person or entity
shall not be deemed to be a waiver by Landlord of any provision hereof. In
the event of default by any assignee of Tenant or any successor of Tenant in
the performance of any of the terms hereof, Landlord may proceed directly
against Tenant without the necessity of exhausting remedies against said
assignee or successor. Landlord may consent to subsequent subletting or
assignments of this Lease by assignees of Tenant without notifying Tenant or
any successor of Tenant, and without obtaining its or their consent thereto
and such action shall not relieve Tenant of any liability under this Lease.

18. RULES

          Tenant shall faithfully observe and comply with the rules and
regulations annexed to this Lease as EXHIBIT "D" and, after notice thereof,
all reasonable modifications thereof and additions thereto from time to time
promulgated in writing by Landlord. Landlord shall not be responsible to
Tenant for the nonperformance by any other tenant or occupant of the Building
of any of said rules and regulations.

19. ENTRY BY LANDLORD

          Landlord may enter the Premises at reasonable hours (and except in
the event of an emergency or an entry pursuant to Subsection (d) below, upon
at least twenty-four hours' notice) to: (a) inspect the same; (b) exhibit the
same to prospective purchasers, lenders or tenants; (c) determine whether
Tenant is complying with all of Tenant's obligations hereunder; (d) supply
janitor service and any other service to be provided by Landlord to Tenant
hereunder, (e) post notice of non-responsibility; and (f) make repairs
required of Landlord under the terms hereof or repairs to any adjoining space
or utility service or make repairs, alterations or improvements to any other
portion of the Building, provided, however, that all such work shall be done
as promptly as reasonably possible and so as to cause as little interference
to Tenant as reasonably possible. Tenant hereby waives any claim for damages
for any injury or inconvenience to or interference with Tenant's business,
any loss of occupancy or quiet enjoyment of the Premises or any other loss
occasioned by such entry. Landlord shall at all times have and retain a key
with which to unlock all of the doors in, on or about Premises (excluding
Tenant's vaults, safes and similar areas designated in writing by Tenant in
advance) and Landlord shall have the right to use any and all means which
Landlord may deem proper to open said doors in an emergency in order to
obtain entry to the Premises. Any entry to the Premises obtained by Landlord
by any of said means, or otherwise, shall not be construed or deemed to be a
forcible or unlawful entry into or a detainer of the Premises or an eviction,
actual or constructive, of Tenant from the Premises, or any portion thereof.

20. EVENTS OF DEFAULT

          The occurrence of any one or more of the following events ("Events
of Default") shall constitute a breach of this Lease by Tenant: (a) if Tenant
shall fail to pay any rent (including Base Rent and Tenant's Share of
Increased Costs) when and as the same become due and payable, or (b) if
Tenant shall fail to pay any other sum when and as the same becomes due and
payable and such failure shall continue for more than ten (10) days; or (c)
if Tenant shall fail to perform or observe any other term hereof or of the
rules and regulations described in Section 18 to be performed or observed by
Tenant, such failure shall continue for more than thirty (30) days after
notice thereof from Landlord and Tenant shall not within such period commence
with due diligence and dispatch the curing of such default, or, having so
commenced, shall thereafter fail or neglect to prosecute or complete with due
diligence and dispatch the curing of such default; or (d) if Tenant shall
make a general assignment for the benefit of creditors, or shall admit in
writing its inability to pay its debts as they become due or shall file a
petition in bankruptcy, or shall be adjudicated as bankrupt or insolvent, or
shall file a petition seeking any reorganization, arrangement, composition,
readjustment, liquidation, dissolution or similar relief under any present or
future statute, law or regulation, or shall fail any answer admitting or
shall fail timely to contest the material allegations of a petition filed
against it in any such proceeding, or shall seek or contest to or acquiesce
in the appointment of any trustee, receiver or liquidator

                                       11
<PAGE>

of Tenant or any material part of its properties; or (e) if within thirty
(30) days after the commencement of any proceeding against Tenant seeking any
reorganization, arrangement, composition, readjustment, liquidation,
dissolution or similar relief under any present or future statute, law or
regulation, such proceeding shall not have been dismissed, or if, within
thirty (30) days after the appointment without the consent or acquiescence of
Tenant or of any material part of its properties, such appointment shall not
have been vacated; or (f) if this Lease or any estate of Tenant hereunder
shall be levied upon under any attachment or execution and such attachment or
execution is not vacated within ten (10) days; or (g) if any other event
occurs which is described in this Lease as an Event of Default or a material
breach of, or material default under, this Lease.

21. TERMINATION UPON DEFAULT

          If an Event of Default shall occur, Landlord at any time thereafter
may give a written termination notice to Tenant, and on the date specified in
such notice (which shall be not less than three (3) days after the giving of
such notice) Tenant's right to possession and this Lease shall terminate,
unless on or before such date all rent and other sums payable by Tenant under
this Lease (together with interest thereon at the maximum rate allowable by
law) and all costs have been paid by Tenant and all other breaches of this
Lease by Tenant at the time existing shall have been fully remedied. Upon
such termination, Landlord may recover from Tenant: (a) the worth at the time
of award of the unpaid rent which had been earned at the time of termination;
(b) the worth at the time of award of the amount by which the unpaid rent
which would have been earned after termination until the time of award
exceeds the amount of such rental loss that Tenant proves could have been
reasonably avoided; (c) the worth at the time of award of the amount by which
the unpaid rent for the balance of the Term after the time of award exceeds
the amount of such rental loss that Tenant proves could be reasonably
avoided; and (d) any other amount necessary to compensate Landlord for all
the detriment proximately caused by Tenant's failure to perform its
obligations under this Lease or which results therefrom. The "worth at the
time of award" of the amounts referred to in clauses (a) and (b) above shall
be computed by allowing interest at the rate of ten percent (10%) per annum.
The worth at the time of award of the amount referred to in clause (c) above
shall be computed by discounting such amount at the discount rate of the
Federal Reserve Bank of San Francisco at the time of award plus one percent
(1%). For the purposes of determining unpaid rent under clauses (a), (b) and
(c) above, the monthly rent reserved in this Lease shall be deemed to be the
rent due under Sections 4 and 5 above, as adjusted by Section 6.

22. CONTINUATION AFTER DEFAULT

          Landlord also has the remedy described in California Civil Code
Section 1951.4 (Lessor may continue Lease in effect after Lessee's breach and
abandonment and recover rent as it becomes due, if Lessee has the right to
sublet or assign, subject only to reasonable limitations). Acts of
maintenance or preservation or efforts to relet the Premises or the
appointment of a receiver upon application of Landlord to protect Landlord's
interest under this Lease shall not constitute a termination of Tenant's
right to possession.

23. OTHER RELIEF

          The remedies provided for in this Lease are in addition to any
other remedies available to Landlord at law or in equity by statute or
otherwise.

24. PARKING

          Unless Tenant is in default hereunder, Tenant shall be entitled to
nine (9) unreserved vehicle parking spaces (based on 3 spaces per 1,000
rentable square feet in the Premises) in the building parking facility
subject to a monthly parking fee for such spaces designated by the parking
operator from time to time for parking; however, Tenant shall not be charged
a greater monthly parking fee rate than Landlord is charged. Landlord may
assign any unreserved and unassigned parking spaces and/or make all or a
portion of such spaces reserved, if it determines in its sole discretion that
it is necessary for orderly and efficient parking. Tenant shall not use more
parking than said number. If Landlord has not assigned specific spaces to

                                       12
<PAGE>

Tenant, Tenant shall not use any spaces which have been so specifically
assigned by Landlord to other tenants or for such other uses as visitor
parking or which have been designated by governmental entities with competent
jurisdiction as being restricted to certain uses. Tenant shall not permit or
allow any vehicles that belong to or are controlled by Tenant or Tenant's
employees, suppliers, shippers, customers, or invitees to be loaded,
unloaded, or parking in areas other than those designated by Landlord for
such activities. If Tenant permits or allows any of the prohibited activities
described in this Section 24, then Landlord shall have the right, without
notice, in addition to such other rights and remedies that it may have, to
remove or tow away the vehicle involved and charge the cost to Tenant, which
cost shall be immediately payable upon demand by Landlord. Landlord reserves
the right at any time to relocate such spaces and to substitute an equivalent
number of parking spaces in a parking structure or subterranean parking
facility or in a surface parking area within a reasonable distance of the
Premises.

          If requested by Landlord, Tenant shall submit a written notice in a
form reasonably specified by Landlord containing the names, home and office
addresses and telephone numbers of those persons who are authorized by Tenant
to use the parking spaces on a monthly basis (the "Authorized Users") and
shall use its best efforts to identify each automobile by make, model and
license number. Such notice, as amended from time to time, is hereafter
referred to as the "Parking Notice." No person whose name, address, and phone
numbers are not contained in the Parking Notice shall have any right to park
an automobile in the area of the parking facilities designated for monthly
parking and no person whether or not their name is included in the Parking
Notice shall have any right to park an automobile not identified in the
Parking Notice without (in either case) paying the parking charge then
applicable for daily parking in the parking facilities for the Building and
parking in the area designated for daily parking.

          Tenant and Authorized Users shall comply with all rules and
regulations as set forth in the Parking Rules and Regulations portion of the
rules and regulations adopted by Landlord from time to time. Landlord may
refuse to permit any person who violates the Parking Rules and Regulations to
park in the parking facility, and any violation of the rules shall subject
the car to removal. Tenant agrees to use its best efforts to acquaint all
Authorized Users and visitors with the Parking Rules and Regulations.

          All responsibility for damage to cars is assumed by Authorized
Users. Tenant shall repair or cause to be repaired at its sole cost and
expense any and all damage to the parking facility or any part thereof caused
by Tenant or its Authorized Users or resulting from vehicles of Authorized
Users.

25. RIGHT TO RELOCATE

          Landlord shall have the right, upon providing Tenant forty-five
(45) days' written notice describing the premises to which Tenant is to be
relocated, to move Tenant to other space in the Building (the "Relocation
Premises") if necessary to accommodate a tenant who requires at least 5,000
rentable square feet on the 12th floor of the Building. (Landlord shall also
provide Tenant with a preliminary notice of possible relocation promptly
after Landlord and the prospective tenant execute a letter of intent for the
applicable space.) Tenant shall have the right to cancel this Lease by giving
Landlord, within ten (10) days of Tenant's receipt of Landlord's 45 day
notice exercising such relocation right, written notice of Lease cancellation
with such cancellation to take effect thirty-five (35) days thereafter (the
"Cancellation Date"), and during such ten (10) day period, Landlord shall
give Tenant reasonable access to Relocation Premises to inspect the
Relocation Premises, subject to the occupancy and rights of tenants in
possession of the Relocation Premises, if any. In the event Tenant fails to
provide Landlord with written notice of Lease cancellation within the
aforesaid 10-day period, Tenant's right to cancel this Lease shall lapse. In
the event Tenant cancels this Lease pursuant to this paragraph, Tenant shall
vacate the Premises and the Building within thirty-five (35) days of Tenant's
delivery to Landlord of its notice of cancellation, and Tenant shall not be
liable for any further obligations of this Lease accruing after the
Cancellation Date; however, if Tenant requests temporary space in its
cancellation notice, Landlord shall use good faith efforts to provide Tenant
with temporary space in the Building for a term of 120 days from the
cancellation of this Lease, and any such temporary space shall be provided
upon the terms of this Lease (including, without limitation,

                                       13

<PAGE>

the same Base Rent rate then applicable to the Premises), except that in no
event shall Landlord be obligated to improve the temporary space or pay for
any of Tenant's moving costs. Tenant's new space shall be no smaller than the
Premises, and shall be provided with comparable improvements (upgrading only
to the level of Tenant's prior space). Landlord shall pay the expenses
reasonably incurred by Tenant in connection with such substitution of
Premises including but not limited to, costs of moving, door lettering,
telephone relocation and reasonable quantities of new stationery. In the event
of such relocation, this Lease shall remain in full force and effect and be
deemed applicable to the new space except that EXHIBIT "A" and Section 1 of
the Basic Lease Provisions shall be amended to include and state all correct
data as to the new space; however, the Base Rent and Tenant's Share of
Increased Costs payable under this Lease shall not be increased.

26.    TRADE FIXTURES

           Subject to the provisions of Sections 7 and 8 hereof, Tenant shall
install and maintain its trade fixtures on the Premises, provided that such
fixtures, by reason of the manner in which they are affixed, do not become an
integral part of the Building or Premises. Tenant, if not in default
hereunder, may at any time or from time to time during the Term, or upon the
expiration or earlier termination of this Lease, alter or remove any such
trade fixtures so installed by Tenant. If not so removed by Tenant on or
before the expiration or earlier termination of this Lease, Tenant, upon the
request of Landlord to do so, shall thereupon remove the same. Any damage
to the Premises caused by any installation, alteration or removal of such
trade fixtures shall be promptly repaired at the expense of Tenant.

27.    SUCCESSORS AND ASSIGNS

           Subject to the provisions hereof relating to assignment,
mortgaging, pledging and subletting, this Lease shall bind the heirs,
executors, administrators, successors and assigns of any and all the parties
hereto.

28.    TIME

           Time is of the essence of this Lease.

29.    LANDLORD'S DEFAULT

           If Landlord shall default in the performance of any of its
obligations under this Lease, Tenant shall have no right to pursue any
remedies against Landlord, including, without limitation, termination of this
Lease, unless and until Tenant shall have given Landlord written notice of
the default and Landlord shall not have commenced the cure of such default
within thirty (30) days after receipt of the notice, or thereafter shall not
diligently prosecute the cure to completion. Satisfaction of any money
judgment obtained against Landlord shall be satisfied only out of: (i)
proceeds of sale or disposition of Landlord's interest in the Building,
whether by Landlord or by execution of judgment; or (ii) rentals and other
payments from tenants in the Building.

30.    TENANT'S LEASE OF OTHER SPACE IN BUILDING

           If Tenant leases space in the Building under a lease other than
this Lease, then any default by Tenant under such other lease may be deemed by
Landlord to be a default by Tenant under this Lease.

31.    LANDLORD'S RIGHT TO CURE DEFAULTS

           All agreements and provisions to be performed by Tenant under any
of the terms of this Lease shall be performed at Tenant's sole cost and
expense and without any abatement of rent. If Tenant shall fail to pay any
sum of money, other than rent, required to be paid by it hereunder or shall
fail to perform any other act on its part to be performed hereunder and such
failure shall continue for thirty (30) days after notice thereof by Landlord,
Landlord may, but shall not be obligated to do so, and without waiving or
releasing Tenant from any obligations of Tenant, make any such payment or
perform any such other act on Tenant's part to be made or

                                      14
<PAGE>

performed as provided in this Lease. All sums so paid by Landlord and all
necessary incidental costs shall be deemed additional rent payable hereunder
and shall be payable to Landlord on demand, and Landlord shall have (in
addition to any other right or remedy of Landlord) the same rights and
remedies in the event of the nonpayment thereof by Tenant as in the case of
default by Tenant in the payment of rental.

32.    ATTORNEYS' FEES

           If as a result of any breach or default in the performance of any
of the provisions of this Lease, either party shall use the services of any
attorney in order to secure compliance with such provisions or recover
damages therefore, or to enforce any judgment or to terminate this Lease (or,
in the case of a default by Tenant, to evict Tenant), then the losing party
(as determined by the trier of fact) shall reimburse the prevailing party
upon demand for any and all attorneys' fees and expenses so incurred by the
prevailing party, including but not limited to, fees and expenses incurred in
connection with appellate proceedings, enforcement proceedings and bankruptcy
proceedings (and the obligation to pay such fees and expenses shall survive
and not be merged into any judgement).

33.    EMINENT DOMAIN

           Should the whole or any part of the Premises be condemned and
taken by any competent authority for any public or quasi-public use or
purpose, all awards payable on account of such condemnation and taking shall
be payable to Landlord, and Tenant hereby waives all interest in or claim to
said awards, or any part thereof, except that Tenant shall be entitled to any
award made to Tenant for Tenant's moving expenses and loss of trade fixtures
owned by Tenant. If the whole of the Premises shall be so condemned and
taken, then this Lease shall terminate. If a part only of the Premises is
condemned and taken and the remaining portion thereof is not suitable for the
purposes of which Tenant had leased said Premises, Tenant shall have the
right to terminate this lease. If by such condemnation and taking a part only
of the Premises is taken, and the remaining part thereof is suitable for the
purposes for which Tenant has leased said Premises, this lease shall
continue, but the rental shall be reduced in an amount proportionate to the
value of the portion taken as it related to the total value of the Premises.
A voluntary sale of the building by Landlord to any public or quasi-public
body, agency or person, corporate or otherwise, having the power of eminent
domain, either under threat of condemnation or while condemnation proceedings
are pending, shall be deemed to be taking under the power of eminent domain
for purposes of this Section 33.

34.    SUBORDINATION

           This Lease, at Landlord's option, shall be subordinate to any
ground lease, mortgage, deed of trust, or any other hypothecation for
security now or hereafter placed upon the Building and to any and all
advances made on the security thereof and to all renewals, modification,
consolidations, replacements and extensions thereof. Notwithstanding such
subordination, Tenant's right to quiet possession of the Premises shall not
be disturbed if Tenant is not in default and so long as Tenant shall pay the
rent and observe and perform all of the provisions of the Lease, unless this
Lease is otherwise terminated pursuant to its terms. If any mortgagee,
trustee or ground landlord shall elect to have this Lease prior to the lien
of its mortgage, deed of trust or ground lease, then this Lease shall be
deemed prior to such mortgage, deed of trust or ground lease, whether this
Lease is dated prior or subsequent to the date of said mortgage, deed of
trust or ground lease or the date of recording thereof.  Tenant agrees to
execute any documents required to effectuate such subordination or to make
this Lease prior to the lien of any mortgage, deed of trust or ground lease,
as the case may be, and failing to do so within ten (10) days after 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 Tenant
fails to execute any documents required to be executed by Tenant under this
Section within ten (10) days after written demand by Landlord, then such
failure shall constitute an Event of Default under this Lease.

                                      15
<PAGE>

35.    NO MERGER

           The voluntary or other surrender of this Lease by Tenant, or a
mutual cancellation thereof, shall not work at merger, and shall, at the option
of Landlord, terminate all or any existing subleases or subtenancies, or may,
at the option of Landlord, operate as an assignment to it of any or all such
subleases or subtenancies.

36.    CONVEYANCE BY LANDLORD

           In the event the original Landlord hereunder, or any successor
owner of the Building, shall sell, assign or transfer the Building, all
liabilities and obligations on the part of the original Landlord, or such
successor owner, under this Lease accruing thereafter shall terminate, and
thereupon all such liabilities and obligations shall be binding upon the new
owner. Tenant agrees to attorn to such new owner.

37.    ESTOPPEL CERTIFICATE

           Tenant shall execute and deliver within fifteen (15) days after
written request by Landlord, a certificate certifying (a) that this lease is
unmodified and in full force and effect (or, if there have been
modifications, that this Lease is in full force and effect, as modified, and
stating the date and nature of each modification), (b) the date, if any, to
which rental and other sums payable hereunder have been paid, (c) that no
notice has been received by Tenant of any default which has not been cured,
except as to defaults specified in said certificate and (d) such other
matters as may be reasonably requested by Landlord to do so within said
fifteen (15) day period. Tenant does hereby make, constitute and irrevocably
appoint Landlord as Tenant's attorney in fact and in Tenant's name, place and
stead, to execute and deliver such certificate on Tenant's behalf if Tenant
fails to timely do so. Any such certificate may be relied upon by any
prospective purchaser, mortgagee or beneficiary under any deed of trust of
the Building or any part thereof. The failure of Tenant to deliver such
certificate within the time specified above shall be deemed to be a material
breach of this Lease and shall entitle Landlord without notice to terminate
this Lease.

38.    NO LIGHT, AIR OR VIEW EASEMENT

           Any diminution or shutting off of light, air or view by any
structure which may be erected on lands adjacent to the Building shall in no
way affect this Lease or impose any liability on Landlord.

39.    HOLDING OVER

           If Tenant holds over after the Term (as extended if permitted in
this Lease) with or without the express or implied consent of Landlord,
Tenant shall be liable for all damages suffered by Landlord as a result of
such holding over including but not limited to, the loss of prospective
tenants and shall become a tenant from month to month upon the terms specified
herein but at a monthly rent equivalent to one hundred and fifty percent
(150%) of the then prevailing monthly rent paid by Tenant at the expiration of
the Term payable in advance on or before the first day of each month and
otherwise payable in accordance with the provisions of Sections 4, 5 and 6
hereof. Each party shall give the other notice at least one month prior to
the date of termination of such monthly tenancy of its intention to terminate
such tenancy.

40.    ABANDONMENT

           In the event of the termination of this Lease by Landlord pursuant
to Section 21 hereof, Landlord may remove any property of Tenant from the
Premises and store the same elsewhere for the account and at the expense and
risk of Tenant, and if Tenant shall fail to pay the cost of storing such
property after it has been stored for a period of ninety (90) days or more,
Landlord may sell any or all such property at public or private sale, in such
manner and at such times and places as Landlord in its sole discretion, may
deem proper, without notice to or demand upon Tenant, for the payment of any
part of such charges or the removal of any such property, and shall apply the
proceeds of such sale: first, to the cost and expenses of such,

                                      16

<PAGE>

including reasonable attorneys' fees actually incurred; second, to the payment
of the cost of or charges for storing any such property; third, to the payment
of any other sums of money which may then or thereafter be due to Landlord from
Tenant under any of the terms thereof; and fourth, the balance, if any, to
Tenant.

41.  SECURITY DEPOSIT

     Tenant has deposited with Landlord the sum of $3,115.35 specified in the
Basic Lease Information (the "Deposit").  The Deposit shall be held by
Landlord as security for the faithful performance by Tenant of all of the
provisions of this Lease to be performed or observed by Tenant.  Landlord may
commingle the Deposit with its general or other funds.  Landlord's
obligations with respect to the Deposit shall be limited to those stated
herein and Landlord shall not be deemed a trustee with respect to the
Deposit.  If Tenant fails to perform or observe any of the provision of this
Lease to be performed or observed by it, then, at the option of Landlord,
Landlord may (but shall not be obligated so to do) apply the Deposit, or so
much thereof as may be necessary to remedy such default or to repair damages
to the Premises caused by the Tenant. If Landlord applies any portion of the
Deposit to remedy any such default or to repair damages to the Premises
caused by Tenant, Tenant shall pay to Landlord, within thirty (30) days after
written demand for such payment by Landlord, all monies necessary to restore
the Deposit up to the original amount. Any portions of the Deposit remaining
upon termination of this Lease shall be returned to Tenant.  If the monthly
rental rate increases during the Term or any extensions thereof, Tenant shall
increase the Deposit to equal the increased monthly rental.

42.  WAIVER

     The waiver by Landlord of any agreement, condition or provision herein
contained shall not be deemed to be a waiver of any subsequent breach of the
same or any other agreement, condition or provision herein contained, nor
shall any custom or practice which may be observed by the parties in the
administration of the terms hereof be construed to waive or to lessen the
right of Landlord to insist upon the performance by Tenant in strict
accordance with said terms. The subsequent acceptance of rental hereunder by
Landlord shall not be deemed to be a waiver of any preceding breach by Tenant
of any agreement, condition or provision 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 rental.

43.  NOTICES

     All notices and demands which may or are required to be given by either
party to the other hereunder shall be in writing and shall be deemed to have
been fully given when deposited in the United States mail, certified or
registered, postage prepaid, and addressed as follows: to Tenant at the
address specified in the Basic Lease Information, or to such other place as
Tenant may from time to time designate in a notice to Landlord; to Landlord
c/o Argus Commercial, 350 S. Figueroa Street, Suite 141, Los Angeles, CA
90071 or to such other place as Landlord may from time to time designate in a
notice to Tenant, or, in the case of Tenant, delivered to Tenant at the
Premises.

44.  COMPLETE AGREEMENT

     There are no oral agreements between Landlord and Tenant affecting this
Lease and this Lease supersedes and cancels any and all previous
negotiations, arrangements, brochures, agreements and understandings, if any,
between Landlord and Tenant with respect to the subject matter of this Lease.
There are no representations between Landlord and Tenant other than those
contained in this Lease and all reliance with respect to any representations
is solely upon such representations as are contained herein.

45.  CORPORATE AUTHORITY

     Each of the persons executing this Lease hereby covenants and represents
and warrants that (a) the entity for which it is executing this Lease is a
duly authorized and validly existing corporation, (b) such entity has and is
qualified to do business in California, (c) such

                                       17
<PAGE>

entity has full right and authority to enter into this Lease, and (d) each
person executing this Lease was authorized to do so on behalf of the
applicable entity for which he is executing this Lease.

46.  HAZARDOUS MATERIALS

     Tenant shall not engage in any activity on or about the Premises or the
Building that violates any Environmental Law and shall not use any Hazardous
Materials in connection with its use or occupancy of the Premises, except in
such small amounts as is normal and customary in general office use and
occupancy, provided, however, that such use shall at all times comply with
all Environmental Laws. Tenant shall promptly, at Tenant's sole cost and
expense, take all investigatory and/or remedial action required or ordered by
any governmental agency or Environmental Law for clean-up and removal of any
contamination involving any Hazardous Material created or caused directly or
indirectly by Tenant. The term "Environmental Law" shall mean any federal,
state or local law, statute, ordinance or regulation pertaining to health,
industrial hygiene or the environmental conditions on, under or about the
Premises, including, without limitation, (i) the Comprehensive Environmental
Response, Compensation and Liability Act of 1980 ("CERCLA"), 42 U.S.C.
Sections 9601 ET SEQ.; (ii) the Resource Conservation and Recovery Act of
1976 ("RCPA"), 42 U.S.C. Sections 6901 ET SEQ.; ((iii) California Health and
Safety Code Sections 25100 ET SEQ.; (iv) the Safe Drinking Water and Toxic
Enforcement Act of 1986, California Health and Safety Code Section 25249.5 ET
SEQ.; (v) the Federal Water Pollution Control Act, 33 U.S.C. Sections 1317 ET
SEQ.; (vi) California Water Code Section 1300 ET SEQ.; and (vii) California
Civil Code Section 3479 ET SEQ., as such laws are amended and the regulations
and administrative codes applicable thereto. The term "Hazardous Material"
includes, without limitation, any material or substance which is (i) defined
or listed as a "hazardous waste", "extremely hazardous waste", "restrictive
hazardous waste" or "hazardous substance" or considered a waste, condition of
pollution or nuisance under the Environmental Laws; (ii) petroleum or a
petroleum product or fraction thereof; (iii) asbestos; and/or (iv) substances
known by the State of California to cause cancer and/or reproductive
toxicity. It is the intent of the parties hereto to construe the term
"Hazardous Materials" and "Environmental Laws" in its broadest sense. Tenant
shall provide all notices required pursuant to the Safe Drinking Water and
Toxic Enforcement Act of 1986, California Health and Safety Code Section
25249.5 ET SEQ. Tenant shall provide prompt written notice to Landlord of the
existence of Hazardous Materials on the Premises and all notices of violation
of the Environmental Laws received by Tenant. Tenant's obligations pursuant
to this Section 46 shall be referred to in this Lease as "Environmental
Compliance."

47.  ADDITIONAL PROVISIONS

     Tenant shall pay or cause to be paid before delinquency any and all
taxes levied or assessed, and which may become payable during the term upon
any of Tenant's leasehold property located in the Premises. If any or all of
Tenant's leasehold improvements, equipment, furniture, fixtures, and personal
property are assessed with the Building, and cause any increase in the
property taxes of the Building or any other tax levied on the Building,
Tenant shall pay to Landlord its share of such taxes within ten (10) days
after delivery to Tenant by Landlord of a statement in writing setting forth
the amount of such taxes applicable to Tenant's property.

48.  MISCELLANEOUS

     The words "Landlord" and "Tenant" as used herein shall include the
plural as well as the singular. If more than one person or entity constitutes
Tenant, the obligations hereunder imposed upon Tenant shall be joint and
several. Time is of the essence of this Lease and each and all of its
provisions. Submission of this instrument or examination or signature by
Tenant does not constitute a reservation of or option for lease, and it is
not effective as a lease or otherwise until execution and delivery by both
Landlord and Tenant. The agreements, conditions and provision herein
contained shall, subject to the provisions as to assignment, apply to and
bind the heirs, executors, administrators, successors and assignees of the
parties hereto. Tenant shall not, without the written consent of Landlord,
use the name of the Building for any purpose other than as the address of the
business to be conducted by Tenant in the Premises. All amounts of money
payable by Tenant to Landlord hereunder, if not paid when due, shall bear
interest

                                       18
<PAGE>

from the date due until the date paid at the highest interest rate permitted
by law. If any provision of this Lease or any portion thereof is determined
to be illegal or unenforceable, such determination shall not affect any other
provision or portion of this Lease and all such other provisions and portions
shall remain in full force and effect.

     This Lease shall be governed by and construed in accordance with the
laws of the State of California.

49.  EXHIBITS AND RIDER

     The exhibits and rider, if any, specified in the Basic Lease Information
are attached to this Lease and are incorporated herein by reference.

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

"TENANT":                                "LANDLORD":

PARAGON MANAGEMENT SYSTEMS,              HASEKO CORPORATION
INC., A CALIFORNIA CORPORATION           a Japanese corporation

By: /s/ K. Hadavi
   ------------------------              By: Haseko (California), Inc.
   Dr. K. Cyrus Hadavi                       a California corporation,
   President                                 its authorized agent

Date:  6/21, 1996
                                             By: /s/ Takeshi Higashio
                                                -----------------------
                                                Name: Takeshi Higashio
                                                Title:Senior Executive Vice
                                                       President

                                             Date:  6/27, 1996

                                             "MASTER LANDLORD":

                                             ROYAL INVESTMENT SYSTEM
                                             PARTNERSHIP (01)

                                             By: Haseko (California), Inc.
                                                 a California corporation,
                                                 its authorized agent

                                             By: /s/ Takeshi Higashio
                                                -----------------------
                                                Name: Takeshi Higashio
                                                Title: Senior Executive Vice
                                                         President

                                             Date:  6/27, 1996

                                       19

<PAGE>

           RIDER ATTACHED TO AND MADE A PART OF
           LEASE DATED JUNE 20, 1996 BY AND BETWEEN
           HASEKO CORPORATION, AS LANDLORD, AND
           PARAGON MANAGEMENT SERVICES, INC., AS
           TENANT

50.  LEASE AS SUB-SUBLEASE

     Supplementing Section 34, Tenant hereby acknowledges that Landlord has
leased the Building and the land underlying the Building from Royal Investment
System Partnership (01)"Master Lessor") pursuant to a master lease (the "Master
Lease") and that Master Lessor has leased the land under the Building from
Koar/Argosy Group, Inc. ("Ground Lessor") pursuant to a ground lease (the
"Ground Lease") and that this Lease is actually a sub-sublease and is subject
and subordinate to the Master Lease and the Ground Lease.

     If Landlord or Master Landlord gives written notice to Tenant at Tenant's
address for notices in Section 43 hereof that Landlord is in default under the
Master Lease or that the Master Lease has expired or has been terminated, then
provided that this Lease has not expired or terminated: (i) Tenant shall
thereafter deliver all sums payable by Tenant under this Lease to Master
Landlord at such address as Master Landlord may direct and otherwise in
accordance with this Lease, and Landlord hereby unconditionally directs Tenant
to so pay such sums upon such written notice to Tenant; and (ii) provided
Tenant is not in default under this Lease after the giving of any applicable
notice and the expiration of any applicable cure period and provided, further,
that Tenant pays all sums payable under this Lease to Master Landlord in
accordance with subsection (i) above and attorns to Master Landlord as the
landlord under this Lease, then Master Landlord shall observe and perform all of
the obligations of Landlord to be observed and performed under this Lease for
the remaining term of this Lease and shall not disturb or interfere with the
quiet use, enjoyment and possession of the Premises by Tenant.

     In the event that the Master Lease expires or is terminated, Master
Landlord hereby agrees not to disturb Tenant's possession of the Premises so
long as Tenant is not in default under the terms of the Lease after the giving
of any applicable notice and the notice and the expiration of any applicable
cure period, continues to perform the terms of the Lease, and attorns to the
Master Landlord as the landlord under the Lease, and upon the request of Master
Landlord or Tenant, Master Landlord and Tenant shall enter into a new lease in
substantially the form of the Lease covering the Term of the Lease that would
remain had the Lease not been terminated.

     Master Landlord's execution of this Lease shall constitute Master
Landlord's approval of: (a) this Rider; and (b) the sub-subleasing of the
Premises by Landlord to Tenant. Tenant hereby acknowledges and agrees that
Tenant is not a third party beneficiary or intended beneficiary of the Master
Lease on the Ground Lease.  In no event shall Master Landlord be responsible
for any acts or omissions of Landlord.

                                       20
<PAGE>

                                   EXHIBIT "A"

                              SITE PLAN OF PREMISES

                                  [SITE PLAN]

                                  12TH FLOOR

                                       21
<PAGE>

                                   EXHIBIT "C"

                            TERM COMMENCEMENT LETTER

Date:  _________________

To:        _______________________
           _______________________
           _______________________
           _______________________

Re:        TERM/ACCEPTANCE OF Premises

           In accordance with Paragraph 2 of your lease dated June 20, 1996,
please acknowledge your acceptance of possession of your Premises and your
agreement that the Commencement Date of the lease is ________________ and the
Termination Date of the lease is _______________.

           Tenant hereby agrees to forward all necessary and normal day-to-day
lease requirements, such as rent and other charges, Insurance Certificates,
property tax payments, etc., to the following, unless otherwise designated by
Landlord:

                 Argus Commercial
                 350 South Figueroa Street, Suite 141
                 Los Angeles, California 90071

           Tenant hereby agrees with the dates set forth above and further
acknowledges its acceptance of possession of the Premises.

TENANT:

PARAGON MANAGEMENT SYSTEMS, INC.
a California corporation By:_______________________
      Dr. K. Cyrus Hadavi,
      President

                                      22
<PAGE>

                                   EXHIBIT "D"

                             RULES AND REGULATIONS

         1.    The sidewalks, halls, passages, exits, entrances, elevators
and stairways of the Building shall not be obstructed by any of the tenants
or used by them for any purpose other than for ingress to and egress from
their respective Premises. The halls, passages, exits, entrances, elevators
and stairways are not for the general public, and the Landlord shall in all
cases retain the right to control and prevent access thereto of all persons
whose presence in the judgment of Landlord would be prejudicial to the
safety, character, reputation and interests of the Building and its tenants,
provided that nothing herein contained shall be construed to prevent such
access to persons with whom any tenant normally deals in the ordinary course
of its business, unless such persons are engaged in illegal activities. No
tenant and no employee or invitee of any tenant shall go upon the roof of the
Building without the prior written consent of Landlord.

         2.    Tenant shall be entitled to one line on the directory board of
the Building for each 1,000 rentable square feet leased by Tenant at
Landlord's expense. No signs, placard, picture, name, advertisement or
notice, visible from the exterior of any tenant's Premises shall be
inscribed, painted, affixed or otherwise displayed by any tenant on any part
of the Building without the prior written consent of Landlord. Landlord will
adopt and furnish to tenant general guidelines relating to signs inside the
Building on the office floors. Tenant agrees to conform to such guidelines,
but may request approval of Landlord for modifications, which approval will
not be unreasonably withheld. All approved signs or lettering on doors shall
be printed, painted, affixed or inscribed at the expense of the tenant by a
person approved by Landlord, which approval will not be unreasonably
withheld. Landlord will provide, at Landlord's expense, one Building standard
suite sign.

         3.    All cooking equipment must be U.L. tested and be in compliance
with all applicable federal, state and city laws, codes, ordinances, rules
and regulations.

         4.    No tenant shall employ any person or persons other than the
janitor of Landlord for the purpose of cleaning the Premises, unless
otherwise agreed to by Landlord in writing. Except with the written consent
of Landlord, no person or persons other than those approved by Landlord shall
be permitted to enter the Building for the purpose of cleaning the same. No
tenant shall cause any unnecessary labor by reason of such tenant's
carelessness or indifference in the preservation of good order and
cleanliness. Janitor services will not be furnished on nights when rooms are
occupied after 9:30 p.m. unless, by agreement in writing, service is extended
to a later hour for specifically designated rooms.

         5.    Landlord will furnish each tenant free of charge with two keys
to each door lock in the Premises. Landlord may make a reasonable charge for
any additional Keys. No tenant shall have any keys made. No tenant shall
alter any key or install a new or additional lock or any bolt on any door of
its Premises without the prior written consent of Landlord. Tenant shall in
each case furnish Landlord with a key for any such lock. Each tenant, upon
the termination of its tenancy, shall deliver to Landlord all keys to doors
in the Building which shall have been furnished to tenant.

         6.    Landlord shall designate how all office equipment, furniture,
appliances and other large object or property ("Equipment") shall be moved in
or out of the Building. The persons employed to move such Equipment in or out
of the Building must be acceptable to Landlord. Landlord shall have the right
to perscribe the weight, size and position of all Equipment brought into the
Building. Heavy objects shall, if considered necessary by Landlord, stand on
wood strips of such thickness as is necessary to properly distribute the
weight. Landlord will not be responsible for loss of or damage to any such
Equipment from any cause, and all damage done to the Building by moving or
maintaining such Equipment shall be repaired at the expense of Tenant.

                                       23
<PAGE>

         7.    No tenant shall use or keep in the Premises or the Building
any kerosene, gasoline or inflammable or combustible fluid or material other
than limited quantities thereof reasonably necessary for the operation or
maintenance of office equipment, or, without Landlord's prior written
approval, use any method of heating or air conditioning other than that
supplied by Landlord. No tenant shall use or keep or permit to be used or
kept any foul obnoxious gas or substance in the Premises, or permit or suffer
the Premises to be occupied or used in a manner offensive or objectionable to
Landlord or to other occupants of the Building by reason of noise, odors or
vibrations, or interfere in any way with other tenants or those having
business therein.

         8.    Landlord shall have the right, exercisable without notice and
without liability to any tenant, to change the name and street address of the
Building.

         9.    Landlord reserves the right to exclude from the Building
between the hours of 6 p.m. and 7 a.m. and at all hours on Sundays, legal
holidays and on Saturdays, any person who, in Landlord's sole opinion has no
legitimate business in the Building. Landlord shall in no case be liable for
damages for any error with regard to the admission to or exclusion from the
Building of any person. In the event of riot, invasion, public excitement or
other circumstances rendering such action advisable in Landlord's opinion,
Landlord reserves the right to prevent access to the Building during the
continuance of the same by such action as Landlord may deem appropriate,
including closing doors.

        10.    The directory of the Building will be provided for the
display of the name and location of tenants and a reasonable number of the
principal officers and employees of tenants, and Landlord reserves the right
to exclude any other names therefrom. Any additional name which tenant shall
desire to place upon said bulletin board must first be approved by Landlord,
and, if so approved, a charge will be made therefore.

        11.    No curtains, draperies, blinds, shutters, shades, screens or
other coverings, hangings or decorations shall be attached to, hung or placed
in, or used in connection with any window of the Building without prior
written consent of Landlord and such items shall be installed as instructed
by Landlord.

        12.    No tenant shall obtain for use in the Premises, ice, drinking
water, food beverage, towel or other similar services, except in accordance
with reasonable regulations as may be fixed by Landlord.

        13.    Each tenant shall see that the doors of its Premises are
closed and locked and that all water faucets, water apparatus and utilities
are shut off before tenant or tenant's employees leave the Premises, so as to
prevent waste or damage, and for any default or carelessness in this regard
tenant shall make good all injuries sustained by other tenants or occupants
of the Building or Landlord. All Tenants shall keep the doors to the Building
corridors closed at all times except for ingress and egress.

        14.    The toilet rooms, toilets, urinals, wash bowls, and other
apparatus shall not be used for any purpose other than that for which they
were constructed, no foreign substance of any kind whatsoever shall be thrown
therein and the expense of any breakage, stoppage or damage resulting from
the violation of this rule shall be borne by the tenant who, or whose
employees or invitees, shall have caused it.

        15.    Except with the prior written consent of Landlord, no tenant
shall sell, or permit the sale at retail, of newspapers, magazines,
periodicals, theater tickets or any other goods or merchandise to the general
public in or on the Premises, nor shall any tenant carry on, or permit or
allow any employee or other person to carry on, the business of stenography,
typewriting or any similar business in or from the Premises for the service
or accommodation of occupants of any other portion of the Building, nor shall
the Premises of any tenant be used for manufacturing of any kind, or any
business or activity other than that specifically provided for in such
tenant's lease.

                                       24
<PAGE>

        16.    No tenant shall install any radio or television antenna,
loudspeaker, or other device on the roof or exterior walls of the Building,
without Landlord's prior written consent.

        17.    There shall not be used any space, or in the public halls of
the Building, either by any tenant or other, any hand trucks except those
equipped with rubber tires and side guards or such other material-handling
equipment as Landlord may approve. No other vehicles of any kind shall be
brought by any tenant into the Building or kept in or about the Premises.

        18.    Each tenant shall store all its trash and garbage within its
Premises. No material shall be placed in the trash boxes or receptacles if
such material is of such nature that it may not be disposed of in the
ordinary and customary manner of removing and disposing of trash and garbage
in the Los Angeles area, without being in violation of any law or ordinance
governing such disposal. All garbage and refuse disposal shall be made only
through entry way and elevators provided for such purposes and at such times
as Landlord shall designate.

        19.    Canvassing, soliciting, distribution of handbills, or any
other written material peddling in the Building are prohibited, and each
tenant shall cooperate to prevent the same.

        20.    Tenant agrees to abide all governmental rules and regulations
pertaining to thermostatic control of the temperature on the Premises as
required by said governmental rules and regulations, and agrees to maintain
and keep the temperature for heat at or below the maximum temperature allowed
from time to time by said governmental rules and regulations. Tenant agrees
to indemnify and hold Landlord free and harmless from any liability incurred
by Landlord as a result of Tenant's failure to comply with said governmental
rules and regulations.

        21.    The requirements of the tenants will be attended to only upon
application by telephone or in person at the office of Landlord. Employees of
Landlord shall not perform any work or do anything outside of their regular
duties unless under special instructions from Landlord.

        22.    Landlord may waive any one or more of these Rules and
Regulations for the benefit of any particular tenant or tenants, but no such
waiver by Landlord shall be construed as a waiver of such Rules and
Regulations in favor of any other tenant or tenants, nor prevent Landlord
from thereafter enforcing any such Rules and Regulations against any or all
of the tenants of the Building.

        23.    These Rules and Regulations are in addition to, and shall not
be construed to in any way modify or amend, in whole or in part, the terms,
covenants, agreements and conditions of any lease of Premises in the Building.

        24.    Landlord reserves the right to make such other reasonable
Rules and Regulations as in its judgment may from time to time be needed for
the safety, care and cleanliness of the Building, and for the preservation of
good order therein.

                                       25

<PAGE>

                           FIRST AMENDMENT OF LEASE

     This FIRST AMENDMENT OF LEASE (the "First Amendment") is dated as of
July 1, 1996, and is entered into by and between HASEKO CORPORATION, a
Japanese corporation ("Landlord") and PARAGON MANAGEMENT SYSTEMS, INC., a
California corporation ("Tenant").

                               R E C I T A L S

     A.   Landlord and Tenant entered into that certain Office Space Lease
dated June 20, 1996 for Suite 1220 (the "Premises") in the building located
at 5933 West Century Boulevard in Los Angeles (the "Building"). The Premises
are more particularly described in the Lease.

     B.   Landlord and Tenant desire to amend the Lease as hereinafter set
forth.

          In consideration of the foregoing recitals, the mutual covenants
contained herein, and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, Landlord and Tenant hereby
agree as follows:

                              A G R E E M E N T

     1.   SERVICES.  Section 8(b) of the Lease is hereby amended by deleting
the words ".8 CFM/sq. ft. of" from the fourth line thereof.

     2.   RIGHT TO RELOCATE.  Section 25 of the Lease is hereby amended by
adding the following sentence to the end thereof:

               Provided Tenant is not in default and Landlord receives a bona
          fide third party offer (a "Bona Fide Offer") to lease space on the
          twelfth floor of the Building that would require a relocation of
          Tenant under this Section 25, and provided, further, that Tenant is
          then as creditworthy as the prospective tenant or is otherwise a
          creditworthy tenant for the space to be leased, as reasonably
          determined by Landlord, then Tenant shall have a one time right of
          first refusal to lease the space described in the notice from
          Landlord on the terms described in said notice, which shall be the
          same terms as those contained in the Bona Fide Offer, IF AND ONLY
          if Tenant notifies Landlord by telecopy that Tenant accepts such
          space and terms within three (3) business days after Landlord
          provides said notice to Tenant (and Tenant's failure to timely and
          unconditionally accept such space and terms shall be conclusively
          deemed to be a rejection by Tenant and a waiver of Tenant's right
          of first refusal, and Tenant's right of first refusal shall
          thereafter no longer apply to any space in the Building).

     3.   LEASE AND SUB-SUBLEASE.  Section 50 of the Lease (in the Rider) is
hereby amended by adding the following paragraph between the third and fourth
paragraphs thereof:

               If the Ground Lease is terminated as the result of a default
          by Landlord or Master Landlord thereunder, and Tenant is forced to
          vacate the Premises as a result of such termination, then Master
          Landlord or Landlord shall return any portion of Tenant's security
          deposit remaining after application of the security deposit as
          permitted by the Lease.

     4.   GOVERNING LAW.  This First Amendment shall be construed in
accordance with and governed by the laws of the State of California.

     5.   ENTIRE AGREEMENT.  This First Amendment constitutes the entire
agreement of Landlord and Tenant with respect to the specific subject matter
hereof.

                                      -1-
<PAGE>
     6.   SUCCESSORS AND ASSIGNS.  Subject to Section 17 of the Lease, the
Lease shall be binding upon and shall inure to the benefit of successors and
assigns of any and all of the parties hereto.

     7.   ATTORNEYS' FEES.  If either party commences an action or proceeding in
connection with this First Amendment or to enforce or interpret this First
Amendment, the prevailing party (as determined by the trier of fact and
confirmed on appeal, if any) shall be entitled to collect its attorneys' fees
and costs incurred in connection with such action or proceeding (including
any appeals) from the other party, and the prevailing party's rights and the
other party's obligations hereunder shall be severable from, and shall
survive and not merge into, any judgment.

     IN WITNESS WHEREOF, Landlord and Tenant have executed this First
Amendment as of the day and year first written above.

"TENANT":                              "LANDLORD":

PARAGON MANAGEMENT SYSTEMS,            HASEKO CORPORATION,
INC., a California corporation         a Japanese corporation

By:  /s/ K. Cyrus Hadavi               By:  Haseko (California), Inc.,
     -------------------                    a California corporation,
     Dr. K. Cyrus Hadavi                    its authorized agent
     President

Date: July 8, 1996
                                            By: /s/ Takeshi Higashio
                                                ----------------------------
                                                Name:  Takeshi Higashio
                                                Title: Senior Executive Vice
                                                       President

                                       Date: July 10, 1996

                                       APPROVED BY "MASTER LANDLORD":

                                       ROYAL INVESTMENT SYSTEM
                                       PARTNERSHIP (01)

                                       By:  Haseko (California), Inc.,
                                            a California corporation,
                                            its authorized agent

                                            By: /s/ Takeshi Higashio
                                                ----------------------------
                                                Name:  Takeshi Higashio
                                                Title: Senior Executive Vice
                                                       President

                                       Date: July 10, 1996

                                      -2-
<PAGE>

                           SECOND AMENDMENT OF LEASE

       This SECOND AMENDMENT OF LEASE (the "Second Amendment
is dated as of December 13, 1996, and is entered into by and
between HASEKO CORPORATION, A Japanese corporation, as
Landlord, and PARAGON MANAGEMENT SYSTEMS, INC., a California
corporation, as Tenant, with the consent of ROYAL INVESTMENT
SYSTEM PARTNERSHIP (01), as Master Landlord.

                               R E C I T A L S

     A.  Landlord, and Tenant entered into that certain Office Space Lease
dated June 20, 1996, as amended by that certain First Amendment of Lease
dated July 1, 1996 (collectively, the "Existing Lease") for Suite 1220 (the
"Existing Premises") in the building located at 5933 West Century Boulevard,
Los Angeles, California (the "Building").

     B.  Landlord and Tenant desire to expand the size of the Premises,
extend the term of the Existing Lease and to further amend the Existing Lease
as provided herein.

     In consideration of the foregoing recitals, the mutual covenants
contained herein, and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, Landlord and Tenant hereby
agree as follows:

                             A G R E E M E N T

     1.   DEFINITIONS.

          All capitalized terms used in this Second Amendment which are not
defined herein shall have the same meanings as set forth in the Existing
Lease. Unless expressly stated otherwise herein, the term "Lease" shall mean
the Existing Lease as amended hereby.

     2.   EXPANSION PREMISES.

     (a)  Tenant acknowledges that it is currently in possession of the
Existing Premises. Beginning on the Expansion Space Commencement Date (as
defined below), the Existing Premises shall be expanded to include
approximately an additional three thousand eight hundred thirty-one (3,831)
rentable square feet (the "Expansion Space"). The Expansion Space is adjacent
to the Existing Premises and is commonly known as Suite 1210 located on the
twelfth (12th)

<PAGE>

floor of the Building, as indicated on the floor plan attached hereto as
EXHIBIT "A."  Accordingly, as of the Expansion Space Commencement Date, the
term "Premises" shall mean and include the Existing Premises as expanded by
the Expansion Space, unless specifically stated otherwise. The Premises, as
expanded, is more particularly described on the floor plan attached hereto as
EXHIBIT "B".

     (b)  Landlord and Tenant hereby acknowledge that the rentable area of
the Expansion Space is three thousand eight hundred thirty-one (3,831)
rentable square feet; however, during the first thirty (30) days after the
Expansion Space Commencement Date, Tenant may cause Tenant's space planner to
re-measure the rentable area of the Expansion Space and, if Tenant's
remeasurement, as verified by Landlord's space planner, shows that the
rentable area of the Expansion Space is greater or less than three thousand
eight hundred thirty-one (3,831) square feet, then Landlord and Tenant shall
execute an amendment to the Lease adjusting the amount of Base Rent, the
amount of the Deposit, Tenant's Share of Increased Costs, and the number of
parking spaces based upon the re-measurement of the rentable area of the
Expansion Space. If Tenant does not submit such re-measurement to Landlord
for verification prior to the end of said thirty (30) day period, then Tenant
shall be deemed to have irrevocably stipulated and agreed that the rentable
area of the Expansion Space is three thousand eight hundred thirty-one
(3,831) square feet.

     3.   TERM.

     (a)  The term for the Expansion Space shall be for thirty-six (36)
months and is tentatively scheduled to commence on January 6, 1997 (the
"Target Commencement Date"). Notwithstanding Section 2 of the Existing Lease,
as of the Expansion Space Commencement Date (as defined below), the Term of
the Existing Lease shall be amended so that it shall be coterminous with the
term for the Expansion Space and shall also expire on the date which is
thirty-six (36) months after the Expansion Space Commencement Date. The
Target Commencement Date is based upon an estimated three (3) week period to
complete the Tenant Improvements (as defined below) from the execution of
this Second Amendment. If Landlord, for any reason whatsoever, cannot deliver
possession of the Expansion Space to Tenant on the Target Commencement Date,
this Second Amendment shall not be voidable, nor shall Landlord or its agents
be liable to Tenant for any loss or damage resulting therefrom.

                                       -2-

<PAGE>

     (b)  The Expansion Space shall be deemed completed and possession
delivered when Landlord has substantially completed the Tenant Improvements,
exclusive of installation of all telephone and other communications
facilities, and other finish work or decorating work to be performed by
Tenant. Tenant shall accept the Expansion Space upon notice from Landlord
that the Tenant Improvements have been substantially completed. After
Landlord tenders possession of the Expansion Space to Tenant, Tenant shall
promptly and diligently install its trade fixtures and equipment in the
Expansion Space. The Term shall commence on the earlier to occur of: (i) the
date that is five (5) business days after the date on which Landlord has
notified Tenant that the Tenant Improvements have been substantially
completed; or (ii) the date on which Tenant commences the operation of its
business in the Expansion Space or any part thereof (the "Expansion Space
Commencement Date"). The Expansion Space Commencement Date shall be confirmed
in writing by the parties in the form set forth in EXHIBIT "C" attached
hereto promptly after the Expansion Space Commencement Date, and such written
confirmation shall be attached hereto.

     (c)  If Tenant causes any delay in the construction of the Tenant
Improvements, then notwithstanding the provisions of this Second Amendment
relating to the Term, the Expansion Space Commencement Date shall be the date
which Landlord in its sole discretion determines would have been the
Expansion Space Commencement Date without such Tenant caused delay.

     (d)  Tenant accepts the Expansion Space in its current "AS-IS"
condition. Tenant acknowledges and agrees that Landlord is not obligated to
make any other improvements to the Existing Premises or the Expansion Space,
nor to provide any allowance therefor, except as otherwise provided in
Paragraph 4 below. Within five (5) business days after the Expansion Space
Commencement Date, Tenant may deliver a written punch-list to Landlord
listing defective light fixtures and electrical outlets, and provided such a
punch-list is timely provided to Landlord, Landlord shall use reasonable
efforts to replace or repair the defective fixtures or outlets HUAC defusors
and thermostats and plumbing with Building standard fixtures and outlets HUAC
defusors and thermostats and plumbing as soon as reasonably possible.

     4.   TENANT IMPROVEMENTS.

          Upon execution hereof and prior to the Expansion Space Commencement
Date, Landlord shall, at Landlord's cost and expense, perform the following
work in the Expansion

                                       -3-
<PAGE>

Space, using Building standard materials unless otherwise indicated:

           (1)   Construct a ten foot (10') wide floor-to-ceiling opening in
                 the reception area of Suite 1220 along the demising wall
                 which separates Suite 1220 and Suite 1210;
           (2)   Install a four inch (4") wide oak threshold (in a mutually
                 acceptable color) along the floor in the space created by the
                 construction of the above-mentioned opening in the demising
                 wall;
           (3)   steam clean the existing carpeting;
           (4)   dry clean the existing curtains and replace any missing
                 curtains;
           (5)   replace any missing or stained ceiling tiles; and
           (6)   remove any remaining loose cables or wires.

The above items are collectively referred to herein as the "Tenant
Improvements." During Landlord's construction of the Tenant Improvements,
Landlord shall use commercially reasonable efforts to minimize interference
with Tenant's use and enjoyment of the Existing Premises, and Tenant shall
use commercially reasonable efforts to minimize interference with Landlord's
construction of the Tenant Improvements.

     5.    BASE RENT.

     Section 5 of the Existing Lease is hereby deleted and replaced with this
Paragraph 5.

     (a)   Beginning on the Expansion Space Commencement Date and continuing
throughout the Term, Tenant shall pay Base Rent for the Premises in
accordance with the provisions of Section 4 of the Existing Lease, at the
following rate:

<TABLE>
<CAPTION>

                                       Rate Per
                                       Rentable                 Monthly
                                       Square Foot              Rent
                                       -----------              -------
<S>                                     <C>                     <C>
Existing Premises                       $1.05                   $3,115.35

Expansion Space                         $1.05                   $4,022.55
                                                                ---------
     Total                                                      $7,137.90
</TABLE>

Notwithstanding the foregoing, concurrent with Tenant's execution and
delivery of this Second Amendment, Tenant

                                     -4-
<PAGE>

shall pre-pay to Landlord the first three (3) months of Base Rent owned for
the existing premises and Expansion Space in the amount of (21,413.70) (which
amount shall be applied to the Base Rent due on the existing premises and
Expansion Space for the first three calendar months following the Expansion
Space Commencement Date). Should the Expansion Space Commencement Date be any
day other than the first day of a calendar month, then the Base Rent for the
first partial month and the last partial month shall be equitably pro rated.

       (b)   Notwithstanding the foregoing, and provided that Tenant has not
been in material default under the terms of the Lease at any time prior to,
or during, any Abatement Periods (as defined below), Base Rent for the
Premises shall be abated during the 6th and 18th complete months of the Term
following the Expansion Space Commencement Date (collectively, "Abatement
Periods"). In the event that prior to, or during, any Abatement Periods Tenant
materially defaults in the performance of any of its obligations under the
Lease, and such material default is not cured within the applicable cure
period, then the Base Rent abatement granted Tenant herein shall be null and
void, and if such material default occurs during any of the Abatement
Periods, then Tenant shall be obligated to immediately pay Landlord, as rent,
any Base Rent so abated for that applicable Abatement Period. However,
Landlord shall not be entitled to recover any Base Rent which has been so
abated after the applicable Abatement Period has ended. The abatement granted
pursuant to this Paragraph 5 shall apply only to Base Rent and shall have no
effect on Tenant's obligations to pay Tenant's Share of Increased Costs and
Taxes, or any other sums owing by Tenant under the Lease.

     6.    TENANTS SHARE OF INCREASED COSTS.

           Tenant shall pay Tenant's Share of Increased Costs in accordance
with the terms of the Lease, except that the Base Year and Base Tax Year (as
such terms are defined in Sections 6(a) and (b) of the Existing Lease) shall
be the calendar year 1997. As of the Expansion Space Commencement Date,
Tenant's Share of Increased Costs attributable to the Premises shall be
increased to equal 3.288%.

                                     -5-
<PAGE>

     7.    PARKING.

           As of the Expansion Space Commencement Date, Tenant shall be
entitled to eleven (11) additional unreserved vehicle parking spaces (based
on 3 spaces per 1,000 rentable square feet in the Expansion Space) in the
Building parking facility, in accordance with the terms and provisions of
Section 24 of the Existing Lease.

     8.    SECURITY DEPOSIT.

           Upon the execution of this Second Amendment by Tenant, Tenant
shall deposit an amount equal to Four Thousand Twenty-two and 55/100 Dollars
($4,022.55) with Landlord, such that Landlord shall hold a Deposit in an
amount equal to one (1) month's Base Rent for the Premises as hereby
expanded.

     9.    RIGHT TO RELOCATE.

           Landlord hereby acknowledges and agrees that, during the initial
thirty-six (36) months of the Term, it shall not be entitled to exercise the
right to relocate Tenant to other space within the Building as provided in
Section 25 of the Existing Lease.

     10.   CONSTRUCTION; REAFFIRMATION.

           Except as expressly amended hereby, all of the terms and
conditions of the Existing Lease shall remain unmodified and in full force
and effect. In the event of a conflict between the terms of the Existing
Lease and the terms of this Second Amendment, the terms of this Second
Amendment shall govern and prevail. The Existing Lease, as amended by this
Second Amendment, is hereby reaffirmed.

     11.   GOVERNING LAW.

           This Second Amendment shall be construed in accordance with and
governed by the laws of the State of California.

     12.   ENTIRE AGREEMENT.

           This Second Amendment constitutes the entire agreement of Landlord
and Tenant with respect to the specific subject matter hereof.

                                     -6-

<PAGE>

     13.  CORPORATE AUTHORITY.

          If Tenant is a corporation, each of the persons executing this
Second Amendment on behalf of Tenant hereby covenants and represents and
warrants that (a) Tenant is a duly authorized and validly existing
corporation, (b) Tenant has and is qualified to do business in California,
(c) Tenant has full right and authority to enter into this Second Amendment,
and (d) each person executing this Second Amendment on behalf of Tenant was
authorized to do so.

     14.  SUCCESSORS AND ASSIGNS.

          Subject to the provisions of the Existing Lease relating to
assignment, mortgaging, pledging and subletting, the Existing Lease, as
amended by this Second Amendment, shall bind the heirs, executors,
administrators, successors and assigns of any and all of the parties hereto.

     15.  ATTORNEYS' FEES.

          If either party commences an action or proceeding to enforce or
interpret this Second Amendment, the prevailing party (as determined by the
trier of fact and confirmed on appeal, if any) shall be entitled to collect
its attorneys' fees and costs incurred in connection with such action or
proceeding (including any appeals) from the other party, and the prevailing
party's rights and the other party's obligations hereunder shall be severable
from, and shall survive and not merge into, any judgment.

     16.  BROKERS.

          Landlord shall be responsible for the payment of a brokerage fee in
connection with the negotiation of this Second Amendment for the Expansion
Space which may be due CB Commercial and Lee & Associates (collectively, the
"Broker") pursuant to a separate agreement. Landlord and Tenant hereby
represent and warrant to the other that no broker, salesperson or finder
other than the Broker may claim a commission or fee in connection with this
Second Amendment, and each party shall indemnify, defend and hold the other
harmless from and against any claims for commissions or fees based on its
communications or agreements with any such broker, salesperson or finder.

                                      -7-
<PAGE>

          IN WITNESS WHEREOF, Landlord and Tenant have executed this Second
Amendment as of the day and year first written above.

"TENANT":                        "LANDLORD":

PARAGON MANAGEMENT SYSTEMS,      HASEKO CORPORATION,
INC., a California               a Japanese corporation
corporation

By: /s/ K. Hadavi                By: Haseko (California), Inc.,
   ---------------------             a California corporation,
Name:  President                     its authorized agent
     -------------------
Title:
      ------------------

By:                                  By: /s/ [ILLEGIBLE]
   ---------------------                ---------------------
Name:                            For Name:  Takeshi Higashio
     -------------------             Title: Senior Executive
Title:                                      Vice President
      ------------------

Date: 12/14    , 1996
                                     Date:   12/19    , 1996

                                 "MASTER LANDLORD":

                                 ROYAL INVESTMENT SYSTEM
                                 PARTNERSHIP (01),
                                 a Japanese partnership

                                 By: Haseko (California), Inc.,
                                     a California corporation,
                                     its authorized agent

                                     By: /s/ [ILLEGIBLE]
                                        --------------------
                                 For Name: Takeshi Higashio
                                     Title: Senior Executive
                                            Vice President

                                     Date:   12/19       , 1996

                                      -8-
<PAGE>

                                   EXHIBIT "A"

                         Floor Plan of Expansion Space

                                   [Attached.]

<PAGE>

                                  EXHIBIT "A"

                                  [FLOOR PLAN]

                                   12TH FLOOR

<PAGE>

                                  EXHIBIT "B"

              Floor Plan of Existing Premises and Expansion Space

                                  [Attached.]

<PAGE>

                                  EXHIBIT "B"

                                 [FLOOR PLAN]

                                  12TH FLOOR

<PAGE>

                                  EXHIBIT "C"

                   Expansion Space Commencement Date Letter

Date:     _____________________, 1996

To:       Haseko Corporation
          c/o Argus Commercial
          350 South Figueroa Street, Suite 141
          Los Angeles, California  90071

Re:  Term/Acceptance of Expansion Space

     In accordance with Paragraph 3 of the Second Amendment dated December
13, 1996, please acknowledge your acceptance of the Expansion Space and your
agreement that the Expansion Space Commencement Date is __________, 1997, and
the expiration date for the Premises is __________, ____.

     Tenant hereby agrees with the dates set forth above and further
acknowledges its acceptance of possession of the Expansion Space.

TENANT:

PARAGON MANAGEMENT SYSTEMS, INC.,
a California corporation

By:
   ------------------------------
Name:
     ----------------------------
Title:
      ---------------------------
<PAGE>

                           THIRD AMENDMENT OF LEASE

     This THIRD AMENDMENT OF LEASE (this "Third Amendment") is dated as of
October 6, 1997, and is entered into by and between HASEKO CORPORATION, a
Japanese corporation, as Landlord, and PARAGON MANAGEMENT SYSTEMS, INC., a
California corporation, as Tenant, with the consent of ROYAL INVESTMENT
SYSTEM PARTNERSHIP (01), as Master Landlord.

                                  RECITALS

     A.    Landlord and Tenant entered into that certain Office Space Lease
dated June 20, 1996, as amended by that certain First Amendment of Lease
dated July 1, 1996, and that certain Second Amendment of Lease dated December
13, 1996 (collectively, the "Existing Lease"), for Suites 1210 and 1220 (the
"Existing Premises") in the building located at 5933 West Century Boulevard,
Los Angeles, California (the "Building").

     B.    Landlord and Tenant desire to expand the size of the Premises,
extend the term of the Existing Lease and to further amend the Existing Lease
as provided herein.

     In consideration of the foregoing recitals, the mutual covenants
contained herein, and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, Landlord and Tenant hereby
agree as follows:

                                 AGREEMENT

     1.    DEFINITIONS.

           All capitalized terms used in this Third Amendment which are not
defined herein shall have the same meanings as set forth in the Existing
Lease. Unless expressly stated otherwise herein, the term "Lease" shall mean
the Existing Lease as amended hereby.

     2.    EXPANSION SPACE.

     (a)   Tenant acknowledges that it is currently in possession of the
Existing Premises. Beginning on January 1, 1998, (the "Expansion Space
Commencement Date"), the Existing Premises shall be expanded to include
approximately three thousand nine hundred forty-five (3,945) additional
rentable square feet (the "Expansion Space"). The Expansion Space is adjacent
to the Existing Premises and is commonly known as Suite 1200B located on the
twelfth (12th) floor of the Building, as indicated on the floor plan attached
hereto as EXHIBIT "A." Accordingly, as of the Expansion Space Commencement
Date, the term "Premises" shall mean and include the Existing Premises as
expanded by the Expansion Space, unless specifically stated otherwise.

<PAGE>

     (b)   Landlord and Tenant hereby acknowledge that the rentable area of
the Expansion Space is three thousand nine hundred forty-five (3,945)
rentable square feet; however, during the first thirty (30) days after the
Expansion Space Commencement Date, Tenant may cause Tenant's space planner to
remeasure the rentable area of the Expansion Space and, if Tenant's
remeasurement, as verified by Landlord's space planner, shows that the
rentable area of the Expansion Space is greater or less than three thousand
nine hundred forty-five (3,945) square feet, then Landlord and Tenant shall
execute an amendment to the Lease adjusting the amount of Base Rent, the
amount of the Deposit. Tenant's Share of Increased Costs, and the number of
parking spaces based upon the remeasurement of the rentable area of the
Expansion Space. If Tenant does not submit such remeasurement to Landlord for
verification prior to the end of said thirty (30) day period, then Tenant
shall be deemed to have irrevocably stipulated and agreed that the rentable
area of the Expansion Space is three thousand nine hundred forty-five (3,945)
square feet.

     3.    TERM.

     (a)   The term for the Expansion Space shall be for thirty-six (36)
months, commencing on the Expansion Space Commencement Date and expiring on
December 31, 2000. Notwithstanding Section 2 of the Existing Lease, as of the
effective date hereof, the Term of the Existing Lease shall be amended so
that it shall be coterminous with the term for the Expansion Space and shall
also expire on December 31, 2000.

     (b)   The Expansion Space shall be deemed completed and possession
delivered when Landlord has substantially completed the Tenant Improvements
(as defined below), exclusive of installation of all telephone and other
communications facilities, and other finish work or decorating work to be
performed by Tenant. Tenant shall accept the Expansion Space upon notice from
Landlord that the Tenant Improvements have been substantially completed.
After Landlord tenders possession of the Expansion Space to Tenant, Tenant
shall promptly and diligently install its trade fixtures and equipment in the
Expansion Space.

     (c)   If Tenant causes any delay in the construction of the Tenant
Improvements, then notwithstanding the provisions of this Third Amendment
relating to the Term, the Expansion Space Commencement Date shall be the date
which Landlord in its sole discretion determines would have been the
Expansion Space Commencement Date without such Tenant caused delay.

     (d)   Tenant accepts the Expansion Space in its current "AS-IS"
condition. Tenant acknowledges and agrees that Landlord is not obligated to
make any other improvements to the Existing Premises or the Expansion Space,
nor to provide any allowance therefor, except as otherwise provided in
Paragraph 4 below. Landlord hereby represents that all existing lighting,
electrical and HVAC systems in the Expansion Space shall be in good working
order per Building standards as of the Expansion Space Commencement Date.
Landlord further agrees to provide Building standard janitorial service to
the Expansion Space once prior to and once immediately following Tenant's
occupation of the Expansion Space.

                                      -2-

<PAGE>

     4.    EARLY OCCUPANCY.

           Tenant shall have the right to enter onto the Expansion Space
following substantial completion of the Tenant Improvements and prior to the
Expansion Space Commencement Date for the purpose of installing, at Tenant's
sole cost and expense, Tenant's equipment and trade fixtures and for the
purpose of operating Tenant's business ("Early Occupancy"). Except as
otherwise provided in this paragraph, all of the terms of this Lease, except
for terms requiring the payment of rent, shall apply to Tenant's Early
Occupancy of the Expansion Space hereunder.

     5.    TENANT IMPROVEMENTS.

           Upon execution hereof and prior to the Expansion Space
Commencement Date, Landlord shall, at Landlord's cost and expense, perform
the following work in the Expansion Space, using Building standard materials:

           (1)   shampoo the existing carpet;

           (2)   remove a four (4) foot wide portion of the partition between
                 Suite 1200B and 1210, in a mutually acceptable location, such
                 that Suite 1200B and Suite 1210 shall be connected. The
                 opening shall be painted drywall partition;

           (3)   paint the walls as shown on EXHIBIT "B" attached hereto;

           (4)   provide and install vinyl composition tile in the kitchen area
                 as shown on EXHIBIT "B" attached hereto;

           (5)   install two (2) telephone conduit lines and two (2) electrical
                 outlets as shown on EXHIBIT "B" attached hereto;

           (6)   dry clean all existing drapery;

           (7)   provide and install horizontal mini-blinds as shown on
                 EXHIBIT "B" attached hereto;

           (8)   provide and install black-out lining (white material) on the
                 inside of the existing drapery as shown on EXHIBIT "B"
                 attached hereto;

           (9)   remove all existing chrome cover-plates and replace with
                 Building standard ivory cover-plates;

           (10)  patch the nail holes in the existing wallcovering with spackle
                 (provided that such patched areas shall not be required to
                 match the surrounding wallcovering);

           (11)  commercially clean all existing vinyl wallcovering; and

           (12)  patch the passageway between Suite 1200B and Suite 1210 with
                 the existing carpet removed from the kitchen area.

                                    - 3 -

<PAGE>

The above items are collectively referred to herein as the "Tenant
Improvements." Items (6), (7), and (8) above shall not be required to be
completed in order to constitute "substantial completion" of the Tenant
Improvements. As such, Landlord may complete such items during Tenant's Early
Occupancy of the Expansion Space, but prior to the Commencement Date. Tenant
hereby acknowledges Landlord's right to enter on to the Expansion Space during
Tenant's Early Occupancy for the purposes of completing the Tenant
Improvements and for such other purposes deemed necessary by Landlord. During
Landlord's completion of the Tenant Improvements, Landlord shall use
commercially reasonable efforts to minimize interference with Tenant's use
and enjoyment of the Expansion Space, and Tenant shall use commercially
reasonable efforts to minimize interference with Landlord's completion of the
Tenant Improvements. Tenant hereby expressly waives any and all claims it may
have against Landlord arising from future damage to Tenant's property by
Landlord or its contractors during the completion of the Tenant Improvements,
and Tenant hereby expressly agrees not to assert any such claims and to bear
the risk of any and all such damage and any and all related losses, unless
caused by the gross negligence of Landlord or Landlord's contractor(s).

     6.    BASE RENT.

     (a)   Tenant shall continue to pay Base Rent on the Existing Premises in
accordance with the Existing Lease. Beginning on the Expansion Space
Commencement Date and continuing throughout the Term, Tenant shall pay Base
Rent for the Expansion Space in accordance with the provisions of Section 4
of the Existing Lease, at the following rate:

                           Rate Per
                           Rentable             Monthly
                           Square Foot          Rent
                           -----------          -------

Expansion Space            $1.05                $4,142.25

Notwithstanding the foregoing, concurrent with Tenant's execution and
delivery of this Third Amendment, Tenant shall pre-pay to Landlord the first
month's Base Rent owned for the Expansion Space in the amount of Four
Thousand One Hundred Forty-Two and 25/100 Dollars ($4,142.25) (which amount
shall be applied to the Base Rent due on the Expansion Space for the first
calendar month following the Expansion Space Commencement Date). Should the
Expansion Space Commencement Date be any day other than the first day of a
calendar month, then the Base Rent for the first partial month and the last
partial month shall be equitably pro rated. Tenant shall pay to Landlord
within fifteen (15) business days of the Expansion Space Commencement Date
the Base Rent due on the Expansion Space for the first partial month of the
Term.

     7.    TENANTS SHARE OF INCREASED COSTS.

           Tenant shall pay Tenant's Share of Increased Costs for the
Premises (as expanded hereby) in accordance with the terms of the Lease,
except that as of the Expansion Space Commencement Date, the Base Year and
Base Tax Year (as such terms are defined in Sections 6(a) and (b) of the
Existing Lease) shall be the calendar

                                    - 4 -
<PAGE>

year 1998. As of the Expansion Space Commencement Date, Tenant's Share of
Increased Costs attributable to the Premises shall be increased to equal
5.196%.

     8.    PARKING.

           As of Tenant's Early Occupancy, Tenant shall be entitled to twelve
(12) additional unreserved vehicle parking spaces (based on 3 spaces per
1,000 rentable square feet in the Expansion Space) in the Building parking
facility, in accordance with the terms and provisions of Section 24 of the
Existing Lease.

     9.    SECURITY DEPOSIT.

           Upon the execution of this Third Amendment by Tenant, Tenant shall
deposit an amount equal to Four Thousand One Hundred Forty-Two and 25/100
Dollars ($4,142.25) with Landlord, such that Landlord shall hold a Deposit in
accordance with Section 41 of the Existing Lease in an amount equal to one
(1) month's Base Rent for the Premises as hereby expanded.

     10.   RIGHT OF SECOND NEGOTIATION.

           If any of the space on the twelfth (12th) floor of the Building
which is contiguous to the Premises becomes available for lease from Landlord
after Landlord shall have leased such space and the tenant occupying such
space shall have vacated the space, then provided Tenant is not then in
default under the Lease and would not be in default under the Lease after
notice or passage of time or both, and provided further that Tenant has not
assigned the Lease or sublet any portion of the Premises, Tenant shall have a
right of second negotiation (the "Right of Second Negotiation") to lease such
space (the "Negotiable Space") as it becomes available; however, Tenant's
rights under this Paragraph 10 shall be subject to and subordinate to the
right of first negotiation held Trident Data Systems, Inc. ("Trident").
Within fifteen (15) days after Landlord elects in its sole discretion to so
lease any Negotiable Space, Landlord shall so advise Trident by delivering to
Trident a notice thereof. Upon its receipt of such notice, Trident has five
(5) days to exercise its right of first negotiation as to the Negotiable
Space by delivering written notice of Trident's decision to Landlord. If
Trident timely exercises its right of first negotiation, Tenant shall have no
further rights as to the Negotiable Space. If Trident chooses not to exercise
its right of first negotiation as to the Negotiable Space, Trident shall be
deemed to have waived and released its right of first negotiation as to the
Negotiable Space and as to any additional Negotiable Space that may become
available during the term of the Lease. Landlord shall then advise Tenant by
delivering to Tenant a notice of the availability of the Negotiable Space.
Upon receipt of such notice, Tenant shall have five (5) days to exercise its
Right of Second Negotiation as to the Negotiable Space by delivering written
notice of Tenant's decision to Landlord. If Tenant timely exercises its Right
of Second Negotiation, then Landlord will negotiate with Tenant to lease the
applicable Negotiable Space to Tenant on terms and conditions acceptable to
Landlord, as determined by Landlord in good faith. If Tenant chooses not to
exercise its Right of Second Negotiation as to the Negotiable Space either by
written notice or failure to notify Landlord in writing within (5) days as
provided above, Tenant shall

                                    - 5 -
<PAGE>

be deemed to have waived and released its Right of Second Negotiation as to the
Negotiable Space and as to any additional Negotiable Space that may become
available during the term of the Lease. If Tenant chooses not to exercise its
Right of Second Negotiation as to the Negotiable Space described in Landlord's
notice, Landlord may lease the Negotiable Space to any other person or entity
upon any terms and conditions, whether more or less favorable than Landlord's
proposal as set forth in Landlord's notice to Tenant.

         11.      OPTION.

                  Tenant shall have one (1) option to extend the Term of the
Lease as set forth in Section 2 of the Existing Lease.

         12.      SIGNAGE.

                  At such time that Tenant has at least 17,500 rentable square
feet of space under lease in the Building, if applicable, and provided that
Tenant's lease term for such space has at least thirty (30) months remaining,
Tenant shall have the right, at Tenant's sole cost and expense, subject to
Landlord's approval as to size, design, color and method of mounting and subject
to the rights of prior tenants in the Building, to install Tenant's name on one
(1) line of the existing Building monument sign, provided that one (1) line is
available on such sign.

         13.      CONSTRUCTION: REAFFIRMATION.

                  Except as expressly amended hereby, all of the terms and
conditions of the Existing Lease shall remain unmodified and in full force and
effect. In the event of a conflict between the terms of the Existing Lease and
the terms of this Third Amendment, the terms of this Third Amendment shall
govern and prevail. The Existing Lease, as amended by this Third Amendment, is
hereby reaffirmed.

         14.      GOVERNING LAW.

                  This Third Amendment shall be construed in accordance with and
governed by the laws of the State of California.

         15.      ENTIRE AGREEMENT.

                  This Third Amendment constitutes the entire agreement of
Landlord and Tenant with respect to the specific subject matter hereof.

         16.      CORPORATE AUTHORITY.

                  If Tenant is a corporation, each of the persons executing this
Third Amendment on behalf of Tenant hereby covenants and represents and warrants
that (a) Tenant is a duly authorized and validly existing corporation, (b)
Tenant has and is qualified to do business in California, (c) Tenant has full
right and authority to enter into this Third Amendment, and (d) each person
executing this Third Amendment on behalf of Tenant was authorized to do so.

                                      -6-
<PAGE>

     17.  SUCCESSORS AND ASSIGNS.

          Subject to the provisions of the Existing Lease relating to
assignment, mortgaging, pledging and subletting, the Existing Lease, as
amended by this Third Amendment, shall bind the heirs, executors,
administrators, successors and assigns of any and all of the parties hereto.

     18.  ATTORNEYS' FEES.

          If either party commences an action or proceeding to enforce or
interpret this Third Amendment, the prevailing party (as determined by the
trier of fact and confirmed on appeal, if any) shall be entitled to collect
its attorneys' fees and costs incurred in connection with such action or
proceeding (including any appeals) from the other party, and the prevailing
party's rights and the other party's obligations hereunder shall be severable
from, and shall survive and not merge into, any judgment.

     19.  BROKERS.

          Landlord and Tenant hereby represent and warrant to the other that
no broker, salesperson or finder may claim a commission or fee in connection
with this Third Amendment, and each party shall indemnify, defend and hold
the other harmless from and against any claims for commissions or fees based
on its communications or agreements with any such broker, salesperson or
finder.

     IN WITNESS WHEREOF, Landlord and Tenant have executed this Third
Amendment as of the day and year first written above.

"TENANT":                           "LANDLORD":

PARAGON MANAGEMENT                  HASEKO CORPORATION,
SYSTEMS, INC.,                      a Japanese corporation
a California corporation

                                    By:  Haseko (California), Inc.,
                                         a California corporation,
                                         its authorized agent
By:   /s/ K. Hadavi
     ---------------------
Name:  K. Cyrus Hadavi
     ---------------------
Title:  CEO
     ---------------------

                                         By: /s/ Tom Sagawa
                                            --------------------------------
                                         Name:  Tom Sagawa
                                         Title:  Executive Vice President

By:
     ---------------------
Name:
     ---------------------
Title:
     ---------------------

[Signatures continued on next page.]

                                     -7-
<PAGE>

                                  EXHIBIT "A"

                        Floor Plan of Expansion Space

                                  [Attached.]

<PAGE>

                                   EXHIBIT A

                                  [FLOOR PLAN]

                              ROYAL AIRPORT CENTER

<PAGE>

                                  EXHIBIT "B"

                   Location of Certain Tenant Improvements

                                  [Attached.]
<PAGE>

                                  EXHIBIT "B"

                                     [MAP]

                             ROYAL AIRPORT CENTER

<PAGE>

                                  EXHIBIT "B"
                                  (continued)

                                     [MAP]

                             ROYAL AIRPORT CENTER

<PAGE>

                           FOURTH AMENDMENT OF LEASE

     This FOURTH AMENDMENT OF LEASE (this "Fourth Amendment") is dated as of
February 25, 2000, and is entered into by and between HASEKO CORPORATION, a
Japanese corporation, as landlord ("Landlord"), and ADEXA, Inc., a California
corporation, as tenant ("Tenant"), with the consent of ROYAL INVESTMENT
SYSTEM PARTNERSHIP (01), as master landlord ("Master Landlord").

                               R E C I T A L S

     A.  Landlord and Paragon Management Systems, Inc., a California
corporation, as predecessor-in-interest to Tenant, entered into that certain
Office Space Lease dated June 20, 1996, as amended by (i) that certain First
Amendment of Lease dated July 1, 1996, (ii) that certain Second Amendment of
Lease dated December 13, 1996, and (iii) that certain Third Amendment of
Lease dated October 6, 1997 (collectively, the "Existing Lease"), for Suites
1200B, 1210 and 1220 (the "Existing Premises") in the building located at
5933 West Century Boulevard, Los Angeles, California (the "Building").

     B.  Landlord and Tenant desire to expand the size of the Premises,
extend the term of the Existing Lease and to further amend the Existing Lease
as provided herein.

     In consideration of the foregoing recitals, the mutual covenants
contained herein, and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, Landlord and Tenant hereby
agree as follows:

                             A G R E E M E N T

     1.  DEFINITIONS.

         All capitalized terms used in this Fourth Amendment which are not
defined herein shall have the same meanings as set forth in the Existing
Lease.  Unless expressly stated otherwise herein, the term "Lease" shall mean
the Existing Lease as amended hereby.

     2.  EXPANSION SPACE.

         (a)  Tenant acknowledges that it is currently in possession of the
Existing Premises.  Beginning on the Expansion Space Commencement Date (as
defined below), the Existing Premises shall be expanded to include that
certain space on the eleventh (11th) floor of the Building containing
approximately seven thousand six hundred ninety-eight (7,698) additional
rentable square feet and commonly known as Suite 1100, as indicated on the
floor plan attached hereto as EXHIBIT "A" (the "Expansion Space").  As of the
Expansion Space Commencement Date, the term "Premises" shall mean and include
the Existing Premises as expanded by the Expansion Space, unless specifically
stated otherwise.  Accordingly, except as expressly stated

<PAGE>

otherwise herein, or where the context would indicate otherwise, all terms
and conditions applicable to the Existing Premises shall be equally
applicable to the Expansion Space.

          (b)  Landlord and Tenant hereby acknowledge that the rentable area
of the Expansion Space is seven thousand six hundred ninety-eight (7,698)
rentable square feet; however, prior to the Expansion Space Commencement
Date, Tenant may cause Tenant's space planner to remeasure the rentable area
of the Expansion Space and, if Tenant's remeasurement, as verified by
Landlord's space planner, shows that the rentable area of the Expansion Space
is greater or less than seven thousand six hundred ninety-eight (7,698)
square feet, then Landlord and Tenant shall execute an amendment to the Lease
adjusting the amount of Base Rent, the amount of the Deposit, Tenant's Share
of Increased Costs, and the number of parking spaces available to Tenant
based upon the remeasurement of the rentable area of the Expansion Space.  If
Tenant does not submit such remeasurement to Landlord for verification prior
to the Expansion Space Commencement Date, the Tenant shall be deemed to have
irrevocably stipulated and agreed that the rentable area of the Expansion
Space is seven thousand six hundred ninety-eight (7,698) square feet.

     3.  TERM.

         (a)  The term for the Expansion Space (the "Expansion Space Term")
shall be for sixty (60) months, commencing on the Expansion Space
Commencement Date, which is tentatively scheduled to occur on June 9, 2000
("Target Expansion Space Commencement Date").  The Target Expansion Space
Commencement Date is based upon an estimated ninety-eight (98) day period to
complete the tenant improvement process from execution of this Lease.  If
Landlord, for any reason whatsoever, cannot deliver possession of the
Expansion Space to Tenant on the Target Expansion Space Commencement Date,
this Lease shall not be voidable, nor shall Landlord or its agents be liable
to Tenant for any loss or damage resulting therefrom.  As of the execution of
this Fourth Amendment by both parties hereto (the "Effective Date"), the Term
of the Existing Lease shall be amended so that it shall be conterminous with
the term for the Expansion Space and shall also expire sixty (60) months
after the Expansion Space Commencement Date.

          (b)  The Expansion Space shall be deemed completed and possession
delivered when the improvements to the Expansion Space ("Expansion
Improvements") have been substantially completed as more particularly set
forth on Exhibit "B" attached hereto and made a part hereof (the "Expansion
Improvements"), exclusive of installation of all telephone and other
communications facilities, and other finish work or decorating work to be
performed by Tenant.  Tenant shall accept the Expansion Space when the
Expansion Improvements have been substantially completed.  The Expansion
Space Term shall commence on the earlier to occur of:  (i) the date on which
Tenant commences the operation of its business in the Expansion Space or any
part thereof; or (ii) the date which is five (5) business days after the date
on which Landlord has notified Tenant that the Expansion Improvements have
been substantially completed (the "Expansion Space Commencement Date").  The
Expansion Space Commencement Date shall be confirmed in writing by the
parties in the form set forth in Exhibit "C" attached hereto promptly after
the Expansion Space Commencement Date, and such written confirmation shall be
attached hereto.  As of the Expansion Space Commencement Date, "Term" shall
include the Expansion Space Term unless specifically stated otherwise.

                                     -2-
<PAGE>

          (c)  If Tenant causes any delay in the construction of the
Expansion Improvements, then notwithstanding the provisions of this Fourth
Amendment relating to the Term, the Expansion Space Commencement Date shall
be the date which Landlord in its sole discretion determines would have been
the Expansion Space Commencement Date without such Tenant caused delay.

          (d)  Tenant accepts the Expansion Space in its current "AS-IS"
condition.  Tenant acknowledges and agrees that Landlord is not obligated to
make any other improvements to the Existing Premises or the Expansion Space,
nor to provide any allowance therefor, except as otherwise expressly provided
in EXHIBIT "B" (Expansion Space) or EXHIBITS "D" and "D-1" (Existing
Premises) attached hereto.  As of the Effective Date, Section 4 of the Second
Amendment and Section 5 of the Third Amendment shall be deleted in their
entirety and of no further force or effect.

     4.  EARLY OCCUPANCY.

         Tenant shall have the right to enter onto the Expansion Space not
more than fourteen (14) days prior to the Expansion Space Commencement Date
for the purpose of installing, during normal business hours and at Tenant's
sole cost and expense, Tenant's equipment and trade fixtures.  Tenant's
installation of such equipment and trade fixtures shall be subject to the
following conditions: (i) that Landlord approve in writing the location and
the manner of installation of such equipment and trade fixtures (but Landlord
shall not be liable in any way as a result of, or in connection with, such
approval); (ii) that all governmental permits and approvals required for the
installation and use of such equipment and trade fixtures shall have been
obtained; (iii) that Tenant provide Landlord with reasonable evidence that
Tenant and its contractors involved in the installation of such equipment and
trade fixtures carry insurance satisfactory to Landlord for such activities;
(iv) that the installation and use of such equipment and trade fixtures
comply with all applicable laws and permits and do not interfere in any way
with obtaining governmental approvals, permits and inspections for, or with
Landlord's construction of, the Expansion Improvements described in EXHIBIT
"B".  Any such interference shall constitute delays caused by Tenant for
purposes of Paragraph 3(c).  Except as otherwise provided in this paragraph,
all of the terms of this Lease, except for terms requiring the payment of
rent, shall apply to Tenant's early entry onto the Expansion Space and the
installation of such equipment and trade fixtures.  Tenant hereby expressly
waives any and all claims it may have against Landlord arising from future
damage to such equipment and trade fixtures by Landlord or its contractors
during the construction of the Expansion Improvements described in EXHIBIT
"B", and Tenant hereby expressly agrees not to assert any such claims and to
bear the risk of any and all such damage and any and all related losses.

     5.  BASE RENT.

         (a) Tenant's Base Rent for the Expansion Space shall be at the
following rate (and otherwise payable in accordance with the provisions of
Section 4 of the Existing Lease) commencing on the Expansion Space
Commencement Date:

                                     -3-
<PAGE>

<TABLE>
<CAPTION>
Months After              Rate Per
Expansion Space           Rentable            Monthly
Commencement Date         Square Foot         Rent
-----------------         -----------         -------
<S>                       <C>                 <C>
1-36                      $1.30               $10,007.40
37-48                     $1.34               $10,315.32
49-60                     $1.38               $10,623.24
</TABLE>

         (b)  Tenant shall continue to pay Base Rent for the Existing
Premises in accordance with the Existing Lease through December 31, 2000.
Thereafter, for the remainder of the Term, Tenant shall pay Base Rent for the
Existing Premises at the same rate per rentable square foot as Tenant is then
paying for the Expansion Space (including increases at the same times as the
Base Rent for the Expansion Space increases) as set forth in the chart in
Section 5(a) above. By way of example only, during the forty-sixth (46th)
month following the Expansion Space Commencement Date, Tenant shall pay Base
Rent for the Existing Premises in the amount of $14,395.62 per month (based
on $1.34 times 10,743 rentable square feet). Section 5 of the Second
Amendment and Section 6 of the Third Amendment shall be deleted in their
entirety as of January 1, 2001.

         (c)  Notwithstanding the foregoing, concurrent with Tenant's
execution and delivery of this Fourth Amendment, Tenant shall pre-pay to
Landlord the first month's Base Rent owned for the Expansion Space in the
amount of Ten Thousand Seven and 40/100 Dollars ($10,007.40)(which amount
shall be applied to the Base Rent due on the Expansion Space for the first
calendar month following the Expansion Space Commencement Date). Should the
Expansion Space Commencement Date be any day other than the first day of a
calendar month, then the Base Rent for the first partial month and the last
partial month shall be equitably pro rated. Tenant shall pay to Landlord
within fifteen (15) business days of the Expansion Space Commencement Date
the Base Rent due on the Expansion Space for the first partial month of the
Term.

    6.   TENANTS SHARE OF INCREASED COSTS.

         (a)  As of the Expansion Space Commencement Date, Tenant shall pay
the additional Tenant's Share of Increased Costs applicable to the Expansion
Space in accordance with the provisions of the Existing Lease, except that
with respect to the Expansion Space only, the Base Year and Base Tax Year (as
such terms are defined in Sections 6(a) and (b) of the Existing Lease) shall
be the calendar year 2000. Tenant's Share of Increased Costs applicable to
the Expansion Space shall be 3.723%.

         (b)  Tenant shall continue to pay Tenant's Share of Increased Costs
applicable to the Existing Premises (i.e., 5.196%) in accordance with the
provisions of the of the Existing Lease, except that as of January 1, 2001,
the Base Year and Base Tax Year (as such terms are defined in Sections
6(a) and (b) of the Existing Lease) for the Existing Premises only shall be
changed to the calendar year 2001.

         (c)  Tenant's Share of Increased Costs during the first thirty (30)
months following the Expansion Space Commencement Date shall not include any
increases in real property taxes due to a reassessment of the real property
upon which the

                                    -4-
<PAGE>

Building is located as a result of the sale of the Building during the first
thirty (30) months following the Expansion Space Commencement Date.

         (d)  Except as expressly amended hereby, Tenant's obligation to pay
Tenant's Share of Increased Costs applicable to the Premises, including the
Expansion Space, shall be subject to the terms and conditions of Section 6 of
the Existing Lease.

    7.   PARKING.

         As of the Expansion Space Commencement Date, Tenant shall be
entitled to twenty-three (23) additional unreserved vehicle parking spaces
(based on 3 spaces per 1,000 rentable square feet in the Expansion Space) in
the Building parking facility, in accordance with the terms and provisions of
Section 24 of the Existing Lease.

    8.   SECURITY DEPOSIT.

         Upon the execution of this Fourth Amendment by Tenant, Tenant shall
deposit with Landlord an amount equal to Twelve Thousand Six Hundred
Ninety-Three and 15/100 Dollars ($12,693.15), such that Landlord shall hold a
total Deposit in accordance with Section 41 of the Existing Lease in an
amount equal to one (1) month's Base Rent for the Premises as hereby expanded,
based on $1.30 per rentable square foot.

    9.   RIGHT OF SECOND NEGOTIATION.

         If any of the space on the eleventh (11th) or twelfth (12th) floors
of the Building becomes available for lease from Landlord after Landlord
shall have leased such space and the tenant occupying such space shall have
vacated the space, then provided Tenant is not then in default under the
Lease and would not be in default under the Lease after notice or passage of
time or both, and provided further that Tenant has not been in default under
the Lease on three (3) or more separate occasions during the Term, and
provided further that Tenant has not assigned the Lease or sublet any portion
of the Premises, Tenant shall have a right of second negotiation (the "Right
of Second Negotiation") to lease such space (the "Negotiable Space") as it
becomes available; provided, however, that Tenant's rights under this Section
9 shall be subject to and subordinate to any and all rights of first
negotiation held by Trident Data Systems, Inc. ("Trident"). Within fifteen
(15) days after Landlord elects in its sole discretion to so lease any
Negotiable Space, Landlord shall so advise Trident by delivering to Trident a
notice thereof. If Trident timely exercises its right of first negotiation,
Tenant shall have no further rights as to the Negotiable Space. If Trident
chooses not to exercise its right of first negotiation as to the Negotiable
Space, Trident shall be deemed to have waived and released its right of first
negotiation as to the Negotiable Space. Landlord shall then advise Tenant by
delivering to Tenant a notice of the availability of the Negotiable Space.
Upon receipt of such notice, Tenant shall have five (5) days to exercise its
Right of Second Negotiation as to the Negotiable Space by delivering written
notice of Tenant's decision to Landlord. If Tenant timely exercises its Right
of Second Negotiation, then Landlord will negotiate with Tenant to lease the
applicable Negotiable Space to Tenant on terms and conditions acceptable to
Landlord, as determined by Landlord in good faith. If Tenant chooses not to
exercise its Right of Second Negotiation as to the Negotiable Space either by
written notice or failure to notify Landlord in writing within (5) days as
provided above, Tenant shall be deemed to have waived and released its Right
of Second

                                     -5-
<PAGE>

Negotiation as to the Negotiable Space and as to any additional Negotiable
Space that may become available during the term of the Lease. If Tenant
chooses not to exercise its Right of Second Negotiation as to the Negotiable
Space described in Landlord's notice, Landlord may lease the Negotiable Space
to any other person or entity upon any terms and conditions, whether more or
less favorable than Landlord's proposal as set forth in Landlord's notice to
Tenant. As of the Effective Date, Section 10 of the Third Amendment shall be
deleted in its entirety and of no further force or effect.

   10.   OPTION.

         (a)  The third (3rd) paragraph of the Existing Lease and Section 11
of the Third Amendment are hereby deleted in their entirety and are of no
further force or effect.

         (b)  Tenant shall have the option to extend the Term of the Lease, as
amended hereby, for one (1) period of five (5) years of the ("Extension
Term"), provided that Tenant is not then in default under any of the terms or
provisions of the Lease beyond any applicable cure periods, and also provided
that Tenant has not been in default on three (3) or more separate occasions
during the Term of this Lease.

         (c)  Tenant may exercise the extension option by giving written
notice of Tenant's intent to exercise said option to Landlord at least two
hundred ten (210) days prior to the expiration of the Term, but no earlier
than three hundred (300) days prior to the expiration of the Term.

         (d)  At the commencement of the Extension Term, the Base Rent shall
be adjusted to be equal to ninety-five percent (95%) of the then fair market
rental value of the Premises, but no less than the rate in effect immediately
prior to the expiration of the Term, and said adjustment may include future
adjustments to Base Rent if such future adjustments are then being included
in office lease transactions.

         (e)  If Landlord and Tenant cannot agree upon the fair market rental
value of the Premises within sixty (60) days after Landlord's receipt of
Tenant's notice exercising the option contained herein, Landlord and
Tenant shall each appoint a "Qualified Arbitrator" (as defined below) within
seven (7) days after the expiration of the aforementioned sixty (60) day
period. Such arbitrators shall confer and select a third Qualified Arbitrator
(the "Neutral Arbitrator"), who alone shall determine the fair market rental
value of the Premises. Should the two (2) arbitrators fail to select a Third
Qualified Arbitrator to act as the Neutral Arbitrator within seven (7) days,
the Neutral Arbitrator shall be designated pursuant to California Code of
Civil Procedure Section 1281.6, as that Section may be amended or
redesignated from time to time; provided, however, that the Neutral
Arbitrator so appointed must be a Qualified Arbitrator. The determination of
the Neutral Arbitrator shall be binding upon Landlord and Tenant. Landlord
and Tenant shall bear the cost of the arbitrator appointed by such party and
shall equally bear the cost of the Neutral Arbitrator. As used herein, the
term "Qualified Arbitrator" shall mean a person who is an appraiser or real
estate broker licensed by the State of California and who has not less than
five (5) years' experience in commercial leasing or commercial real estate
appraising.

                                     -6-
<PAGE>

     11.  SIGNAGE.

          Tenant shall have the right, subject to Landlord's approval as to
size, design, color and method of mounting and subject to compliance with all
governmental laws and regulations, to have Tenant's name installed on one (1)
line of the existing Building monument sign using Building standard signage
installed at Landlord's cost, Section 12 of the Third Amendment is hereby
deleted in its entirety and of no further force or effect.

     12.  COMMON AREA IMPROVEMENTS.

          (a)  Landlord shall, within twelve (12) months after the Effective
Date, (i) replace the existing common area carpeting and (ii) replace the
existing light fixtures and/or add new fixtures, in the elevator lobby area on
the eleventh (11th) and twelfth (12th) floors of the Building using Building
standard materials and procedures, Landlord shall, prior to selecting the
color and style of such carpeting, notify Tenant of the applicable options
and request Tenant's opinion thereof; provided, however, that Landlord's
selection of the color and style of such carpet shall be made in Landlord's
sole and absolute discretion.

          (b)  Landlord is also planning to perform certain Improvements in
the lobby area of the first (1st) floor of the Building, which may include
chemically cleaning the travertine walls, painting the ceiling, replacing the
existing carpeting or reducing the size of the carpeted areas in the lobby,
all using Building standard materials and procedures (collectively, those
items selected by Landlord, the "First Floor Work"). Subject to force majeure
delays, the First Floor Work is anticipated to be completed within sixty (60)
days following the Effective Date. Additionally, within twelve (12) months
after the Effective Date, Landlord shall replace the existing light fixtures
and/or add new fixtures in the first (1st) floor lobby as determined by
Landlord in its sole and absolute discretion.

          (c) Landlord makes no representation or warranty as to the Common
Area work set forth in this Section 13 and shall not be liable to Tenant for
the results or appearance of the same. All Common Area work (including,
without limitation, which portions of the First Floor Work Landlord elects to
complete) shall be in Landlord's sole and absolute discretion.

     13.  EXISTING PREMISES IMPROVEMENTS.

          Following the Expansion Space Commencement Date, certain
improvements shall be made to the Existing Premises, including without
limitation repainting and recarpeting of the Existing Premises, remodeling
the existing lobby, conference room, reception area and training room in the
Existing Premises, and installing additional electric and phone outlets and
wall covering in the president's office in the Existing Premises
(collectively, the "Existing Premises Improvements"). Prior to the
commencement of the Existing Premises Improvements, Tenant shall have the
right to determine, by notifying Landlord in writing, whether (i) Landlord
shall be required to complete the Existing Premises Improvements using
Landlord's contractor, in which case the Existing Premises Improvements shall
be performed in accordance with the terms and conditions of Exhibit "D-1", or
(ii) Tenant shall complete the Existing Premises

                                       -7-

<PAGE>

Improvements using Tenant's Contractor, in which case the Existing Premises
Improvements shall be performed in accordance with the terms and conditions
of Exhibit "D-2".

     14.  RIGHT TO RELOCATE.

          Notwithstanding any provision of the Lease to the contrary, at any
time after the Expansion Space Term, Landlord shall have the right, upon
providing Tenant thirty (30) days' written notice, to move Tenant from any or
all of the Suites comprising the Premises to other space in the Building.
Such new space shall be approximately the same size as the Premises or the
applicable portion thereof, and be provided with comparable improvements
(upgrading only to the level of Tenant's prior space). In connection with
such substitution of Premises, Landlord shall pay the costs of moving
Tenant's equipment, furniture and furnishings, door lettering, telephone
relocation and reasonable quantities of new stationery. In the event of such
relocation, this Lease shall remain in full force and effect and be deemed
applicable to the new space except that Exhibit "A" and Section 1 of the
Basic Lease Information shall be amended to include and state all correct
data as to the new space.

     15.  CONSTRUCTION; REAFFIRMATION.

          Except as expressly amended hereby, all of the terms and conditions
of the Existing Lease shall remain unmodified and in full force and effect.
In the event of a conflict between the terms of the Existing Lease and the
terms of this Fourth Amendment, the terms of this Fourth Amendment shall
govern and prevail. The Existing Lease, as amended by this Fourth Amendment,
is hereby reaffirmed.

     16.  GOVERNING LAW.

          This Fourth Amendment shall be construed in accordance with and
governed by the laws of the State of California.

     17.  ENTIRE AGREEMENT.

          This Fourth Amendment constitutes the entire agreement of Landlord
and Tenant with respect to the specific subject matter hereof.

     18.  CORPORATE AUTHORITY.

          If Tenant is a corporation, each of the persons executing this
Fourth Amendment on behalf of Tenant hereby covenants and represents and
warrants that (a) Tenant is a duly authorized and validly existing
corporation, (b) Tenant has and is qualified to do business in California,
(c) Tenant has full right and authority to enter into this Fourth Amendment,
and (d) each person executing this Fourth Amendment on behalf of Tenant was
authorized to do so.

                                       -8-

<PAGE>

     19.  SUCCESSORS AND ASSIGNS.

          Subject to the provisions of the Existing Lease relating to
assignment, mortgaging, pledging and subletting, the Existing Lease, as
amended by this Fourth Amendment, shall bind the heirs, executors,
administrators, successors and assigns of any and all of the parties hereto.

     20.  ATTORNEYS' FEES.

          If either party commences an action or proceeding to enforce or
interpret this Fourth Amendment, the prevailing party (as determined by the
trier of fact and confirmed on appeal, if any) shall be entitled to collect
its attorneys' fees and costs incurred in connection with such action or
proceeding (including any appeals) from the other party, and the prevailing
party's rights and the other party's obligations hereunder shall be severable
from, and shall survive and not merge into, any judgment.

     21.  BROKERS.

          Landlord and Tenant hereby represent and warrant to the other that
no broker, salesperson or finder other than Tom Torabi of Lee & Associates
("Broker") may claim a commission or fee in connection with this Fourth
Amendment, and each party shall indemnify, defend and hold the other harmless
from and against any claims for commissions or fees based on its
communications or agreements with any such broker, salesperson or finder. All
commissions or fees shall be payable to Broker pursuant to a separate written
agreement.

     22.  CONFIDENTIALITY.

          The terms of the Lease shall be kept confidential by Tenant and
shall not be disclosed in whole or in part to any third party unless so
required by a court or governmental agency of competent jurisdiction.

     23.  NOTICES.

          Landlord's address for purposes of delivering rental payments in
accordance with the provisions of Section 4 of the Lease shall be c/o Charles
Dunn Real Estate Services, Inc., 800 West 6th Street, 6th Floor, Los Angeles,
California 90017. Landlord's address for purposes of delivering notices
pursuant to Section 43 of the Lease shall be c/o Haseko (California), Inc.,
Attn: John Troll, 350 S. Figueroa Street, Suite 255, Los Angeles, California
90071.

[Signatures on next page.]

                                       -9-

<PAGE>

     IN WITNESS WHEREOF, Landlord and Tenant have executed this Fourth
Amendment as of the day and year first written above.

"TENANT":                              "LANDLORD":

ADEXA, INC.,                           HASEKO CORPORATION,
a California corporation,              a Japanese corporation

                                       By:   Haseko (California), Inc.,
                                             a California corporation,
                                             its authorized agent
By:
   -----------------------------
Name:
     ---------------------------
Title:
      ---------------------------            By:
                                                 --------------------------
                                             Name:  Tom Sagawa
                                             Title: Executive Vice President

By:
   -----------------------------
Name:
     ---------------------------
Title:
      ---------------------------

                                        "MASTER LANDLORD":

                                        ROYAL INVESTMENT SYSTEM
                                        PARTNERSHIP (01),
                                        A Japanese Partnership

                                        By:  Haseko (California), Inc.,
                                             a California corporation,
                                             its authorized agent

                                             By:
                                                 --------------------------
                                             Name:  Tom Sagawa
                                             Title: Executive Vice President

                                      -10-
<PAGE>

                                 EXHIBIT "A"

                        FLOOR PLAN OF EXPANSION SPACE

                                 [ATTACHED.]

<PAGE>

                                  EXHIBIT A

           [GRAPHIC OF FLOOR PLAN ROYAL AIRPORT CENTER 11TH FLOOR]

<PAGE>

                                EXHIBIT "B"

                     IMPROVEMENTS TO EXPANSION SPACE

1.     GENERAL PROVISIONS RELATING TO PREPARATION OF SPACE STUDY, PRICING
PLAN AND CONSTRUCTION DOCUMENTS.

       1.1     Tenant and Landlord shall each cooperate with the other and
with their representatives in the preparation of the space ("Space Study"),
Pricing Plan (as defined below) and plans and specifications ("Construction
Documents") for the construction of the Expansion Space for Tenant ("Tenant
Improvements"), and construction of the Tenant Improvements.

       1.2     [INTENTIONALLY OMITTED]

       1.3     Within fifteen (15) business days after execution of the
Fourth Amendment, City Spaces, Inc. (the "Space Planner") shall prepare and
submit to Landlord for approval a complete set of Construction Documents,
which shall (i) be based upon the Pricing Plan approved by Landlord and
Tenant, (ii) include Tenant's written approval thereof in a form satisfactory
to Landlord, (iii) meet all items and contain all information necessary to
obtain all building and other permits and governmental licenses required for
the proper execution and completion of the Tenant improvements, and (iv)
include, without limitation, the location of doors, partitions, ceilings,
lighting, heating, ventilation and air conditioning, electrical and
telephone outlets, plumbing fixtures, heavy floor loads and any other special
requirements, the "Finish Schedule" (as that term is hereinafter defined) and
other construction detail. Tenant shall be required to utilize building
standard window coverings, doors to exterior hallways and suite entrance
detail, and no materials used in the Tenant Improvements shall deviate from
building standard quality, without first obtaining Landlord's written consent.
In connection with the preparation of the Construction Documents, Space
Planner shall meet with the building engineers designated by Landlord from
time to time, who shall include, but not be limited to plumbing, electrical
and mechanical engineers, in order that the engineering plans and/or
specifications may be prepared for the Expansion Space, which plans and/or
specifications shall be part of the Construction Documents. For the purposes
of this EXHIBIT "B", the term "Finish Schedule" shall mean the schedule
prepared by Space Planner which locates and specifies the colors, materials
and special finishes, if any, for all wall and floor coverings. Failure of
Landlord to approve or disapprove the Construction Documents in writing
(specifying the reasons for any disapproval, which may include the estimated
cost of the Tenant Improvements) within five (5) business days after receipt
of the Construction Documents shall be conclusively deemed a disapproval
thereof by Landlord. If Landlord disapproves the Construction Documents,
Space Planner shall revise and resubmit the same ("First Revised Construction
Documents") to Landlord for approval on or before five (5) business days
after the receipt of Landlord's disapproval. Failure of Landlord to approve
or disapprove in writing the First Revised Construction Documents (specifying
the reasons for any disapproval, which may include the estimated cost of the
Tenant Improvements) and the delivery of such approval or disapproval to
Tenant within five (5) business days shall be conclusively deemed disapproval
thereof. If Landlord disapproves the First Revised Construction Documents,
Space Planner shall again revise and resubmit the same

<PAGE>

("Second Revised Construction Documents") to Landlord for approval. The
procedure and timing for obtaining Landlord's approval of the Second Revised
Construction Documents and any subsequent revised Construction Documents
shall be the same as hereinabove provided for the First Revised Construction
Documents.  Revision and resubmission of the Construction Documents shall
continue as set forth above until the Construction Documents are approved by
Landlord. Each set of revised Construction Documents submitted to Landlord
for approval shall include Tenant's written approval thereof in a form
satisfactory to Landlord.

     1.4    Landlord's approval of matters relating to Tenant Improvements
shall not release or relieve Tenant from its obligations pursuant to Section
2 of this EXHIBIT B.

2.   GENERAL PROVISIONS RELATING TO CONSTRUCTION

     2.1    Landlord shall cause the Tenant Improvements to be installed by a
licensed general contractor chosen by Landlord in its sole and absolute
discretion ("Landlord's Contractor") pursuant to the Construction Documents
approved by Landlord.

     2.2    No change in the Construction Documents shall be made ("Change
Order") without the prior written consent of Landlord. Concurrent with any
request for approval of a Change Order of $1,000.00 or more and any request
for approval of Change Orders aggregating $1,000.00 or more, Tenant shall pay
to Landlord an amount equal to the cost of such Change Order, plus a
Supervision Fee equal to five percent (5%) of the cost of such Change Order.

     2.3    Landlord shall cause Landlord's Contractor to perform its work
diligently and in a first-class workmanlike manner in compliance with
applicable laws and codes. Neither Landlord nor Landlord's Contractor shall
be liable for any direct or consequential damages resulting from delays in
construction beyond the reasonable control of Landlord's Contractor,
including, but not limited to, strikes, availability of labor or materials,
or delays by Tenant or anyone performing services on behalf of Tenant.

     2.4    All work shall be completed at the earliest possible date,
subject to delays beyond the control of Landlord and/or Landlord's Contractor.

     2.5    Tenant agrees at Tenant's expense to obtain and maintain public
liability and workers' compensation insurance adequate to fully protect
Tenant, Landlord and Landlord's Contractors (by naming Landlord, Master
Landlord and Landlord's Contractors as additional insureds), from and against
any and all liability for death or injury to persons or damage to property
caused in or about the Expansion Space from Tenant performing its obligations
under the Lease, including installation by Tenant of its fixtures and
equipment. Tenant shall deliver to Landlord prior to the commencement of any
work on the Tenant Improvements a certificate of insurance.

     2.6    In the event of any delay caused by Tenant in providing
information for preparation or approval of the Construction Documents in
excess of the time periods provided, or in the event of any delay caused by
making revisions to the Construction Documents after the First Revised
Construction Documents, or in the event of any delay caused by revisions or
changes to approved Construction Documents requested by

                                    -2-
<PAGE>

Tenant, or in the event of any delay in construction of the Tenant
Improvements caused by Tenant, or in the event of any delay in performance or
completion by any person employed or engaged by Tenant or by reason of
building code problems arising from Tenant's design or requirements, Tenant
at the time it accepts possession of the Expansion Space shall pay to
Landlord an amount equal to the rent payable under this Lease for the period
of time equal to the period of delay.  The provisions of this Paragraph 2.6
shall be applicable whether or not Landlord makes the election provided for
in Section 3(c) of the Fourth Amendment to establish the Expansion Space
Commencement Date as the date Landlord could have expected but for such
Tenant-caused delay.

     2.7  Tenant agrees that upon substantial completion of the Tenant
Improvements in accordance with the Construction Documents and upon delivery
of possession to Tenant, Tenant will accept the Expansion Space in the
condition in which it may then be.  Upon acceptance of the Expansion Space,
Tenant shall immediately specify to Landlord's Contractors those items, if
any, with which Tenant is not satisfied.  The fact that Tenant may enter into
possession prior to substantial completion for the purpose of installing
equipment or fixtures shall not be deemed an acceptance by Tenant of
completion by Landlord, but in such event Tenant shall hold Landlord and/or
Landlord's Contractor harmless and indemnify Landlord and/or Landlord's
Contractor for any lesser damage to Tenant's equipment, fixtures or goods and
for injury to any persons unless caused by the active negligence of Landlord
and/or Landlord's Contractor or its agents; provided, however, no such entry
by Tenant shall occur without the prior written consent of Landlord.

     2.8  Tenant recognizes that Landlord may deliver the Expansion Space to
Tenant ahead of schedule so that the Expansion Space Commencement Date may occur
prior to the Target Expansion Space Commencement Date.

     2.9  Upon substantial completion of the Tenant Improvements, Tenant
shall commence and diligently complete the installation of its furniture,
furnishings and equipment.

     2.10  The Tenant Improvements, including, but not limited to, the
preparation of the Space Study, Pricing Plan and the Construction Documents,
and all costs and expenses related thereto shall be at Tenant's sole cost and
expense, except as otherwise provided in this Paragraph 2.10 and in Paragraph
2.11 below.  Without cost or expense to Tenant, Landlord shall (i) bring
electricity to the distribution point on the floor, (ii) bring a main
air-conditioning duct to the perimeter of the Expansion Space, and (iii)
furnish construction sprinklers only.

     2.11  Landlord agrees to build out the Expansion Space in accordance
with (i) the Pricing Plan dated January 27, 2000 attached hereto as SCHEDULE
1 (the "Pricing Plan"), (ii) the Royal Airport Center Building Building
Standard Work Construction Specifications attached hereto as SCHEDULE 2, and
(iii) the Preliminary Tenant Improvement Construction Budget dated February
10, 2000 attached hereto as Schedule 3 (the "Preliminary Budget"), all of
which have been approved by Landlord and Tenant.  Landlord shall administer
all payments due to Landlord's Contractor.  Tenant shall be responsible for
any and all costs which are the result of any change initiated by Tenant to
the approved Pricing Plan.  The Landlord shall be responsible for all other
costs incurred

                                     -3-
<PAGE>

in connection with building out the Expansion Space.  The Tenant Improvements
shall include, using Building standard materials and procedures:  (i)
installation of mini-blinds on the exterior windows of the Expansion Space,
(ii) installation of additional electrical outlets and conduit for Tenant's
computers and telephone lines in the Expansion Space, (iii) up to $3,360 for
the installation of bookshelves and/or cabinets in the Expansion Space, (iv)
up to $2,480 for the installation of a projection screen in the training room
in the Expansion Space, and (v) up to $2,780 for performance of millwork in
the Expansion Space, all as referenced in the Preliminary Budget.

     2.12  In no event shall Tenant be entitled to any payment, credit,
refund or other sum by or from Landlord on account of any cost savings realized
by Landlord in connection with the construction of the Tenant Improvements.

                                     -4-
<PAGE>

                                  SCHEDULE 1

                                 [FLOOR PLAN]
<PAGE>

                                   SCHEDULE 2

                                   EXHIBIT B

                         ROYAL AIRPORT CENTER BUILDING

                             BUILDING STANDARD WORK
                          CONSTRUCTION SPECIFICATIONS

Contractor agrees to furnish and install the following materials as the Building
Standard Work, in the quantities specified by the Agent, as indicated on
Tenant's approved plans and specifications. The Work shall comply with all
National, State and Local Municipal Building Code Requirements.

1.   SUBSTITUTION AND SUBMITTALS
     A.   No substitutions allowed without written permission of the owner, or
          owner's Agent.
     B.   Requests for substitutions must be made in writing 10 days prior to
          bid date, and must include the complete specification of the proposed
          substitution and the reason for the request.
     C.   All materials must have current I.C.B.O. certification on file with
          the City of Los Angeles Building Department.

2.   DEMISING PARTITIONS
     A.   2 1/2", 25 gauge steel studs, 24" on center.
     B.   Full height from floor slab to ceiling slab.
     C.   5/8" type "x" drywall, one layer each side of studs.
     D.   Drywall partition taped smooth, and sanded to receive paint or
          wallcovering from floorline to top of drywall board.
     E.   Column furr-out to be constructed as demising and costed separately.
     F.   All inside and outside corners to have corner "L" metal.

3.   ONE HOUR RATED DEMISING PARTITIONS
     A.   2 1/2", 25 gauge steel studs, 24" on center.
     B.   Full height from floor slab to ceiling slab.
     C.   5/8" type "x" drywall, one layer each side of studs.
     D.   Drywall partition fire taped smooth, and sanded to receive paint or
          wallcovering from floorline to top of drywall board.
     E.   All penetrations through wall have to be fire-stopped according
          to building codes.
     F.   Column furr-out to be constructed as demising and costed separately.
     G.   All inside and outside corners to have corner "L" metal.

4.   SOUND RATED DEMISING PARTITIONS
     A.   2 1/2", 25 gauge steel studs, 24" on center.
     B.   Full height from floor slab to ceiling slab.
     C.   5/8" type "x" drywall, one layer each side of studs.
     D.   Drywall partition taped smooth, and sanded to receive paint or
          wallcovering from floorline to top of drywall board.
     E.   R-11 Batt type fiberglass insulation in cavity.
     F.   Column furr-out to be constructed as demising and costed separately.
     G.   All inside and outside corners to have corner "L" metal.

5.   INTERIOR PARTITIONS
     A.   Floor slab to ceiling grid.
     B.   5/8" type "x" drywall, one layer each side of studs.
     C.   2 1/2", 25 gauge steel studs, 24" on center.
     D.   Drywall partition taped smooth, and sanded to receive paint or
          wallcovering from floorline to top of drywall board.
     E.   "Jamb-X" metal at termination of partition at ceiling grid.
     F.   All inside and outside corners to have corner "L" metal.

6.   PERIMETER DRYWALL ABOVE AND BELOW WINDOW WALL
     A.   Drywall below exterior window wall to floor slab and above window
          wall, to 6" above suspended ceiling with 5/8" type "x" drywall.
     B.   Perimeter drywall taped smooth and sanded to receive paint or
          wallcovering to floor.
     C.   "L" metal at grid line on window wall to terminate drywall.

<PAGE>

EXHIBIT B (CONT'D)

7.   TENANT ENTRY DOOR ASSEMBLY
     A.   Doors: 3'0" x 8'7" x 1 3/4" solid core, walnut veneer, 20-minute
          fire-rated.
     B.   Door Frames: With snap trim, 3'0" x 8'7", Western Integrated,
          three-piece dark bronze anodized aluminum, 29-minute fire-rated.
     C.   Finish Hardware: See hardware specs, attached.

8.   INTERIOR DOOR ASSEMBLY
     A.   Doors: 3'0" x 8'7" x 1 3/4" solid core, walnut veneer.
     B.   Door Frames: With snap trim, 3'0" x 8'7", Western Integrated,
          three-piece dark bronze anodized aluminum.
     C.   Finish Hardware: See hardware specs, attached.

9.   ACOUSTICAL CEILING
     A.   Ceiling height on 2nd to 12th floor to be 9'0" above slab floor.
     B.   Ground floor ceiling height to be 11' above slab floor.
     C.   2' x 2' Armstrong Cortega drop-in tile throughout demised area.
     D.   Edge: Square edge, regular.
     E.   Finish: Factory white.
     F.   Reveal: White.
     G.   Grid: Fine Line by Bonn.
     H.   All ceilings to be finished with new "L" metal at Perimeter walls.
     I.   All T-bars to be earthquake wired with compression struts per code
          requirements.

10.  PAINTING
     A.   One coat Frazee 065 Acry-Prime and one finish coat of Frazee Eggshell
          022 Lo-Glo Acrylic as necessary to cover all partitioning.
     B.   Two coats of Watco oil finish Natural Walnut.
     C.   One coat Frazee 065 Acry-Prime and one finish coat of Frazee 328
          Velglo Semi-gloss as necessary in kitchen and bathroom areas.

11.  FLOOR COVERINGS
     A.   Lotus, Diplomat 30, 30 oz. cut pile carpet or Substantial 24 loop
          pile.
     B.   Installation over prepared floor and Princeton 40 oz. pad, or
     C.   Installation over prepared floor direct glue-down.
     D.   Armstrong Imperial Excelon VCT 12" x 12" squares.
     E.   Colors: as selected by Tenant from Landlord's standard samples.

12.  RUBBER BASE
     A.   4" rubber carpet and/or rubber topset base on all wall surfaces.
     B.   Burke or Roppe.
     C.   Color to be selected by Tenant from Landlord's standard samples.

13.  FLUORESCENT LIGHT FIXTURES
     A.   2' x 4' T-bar lay-in type, Lithonia, one each, 3 tube #PN338-082
          with electronic energy saving ballasts.
     B.   Cool white fluorescent tubes, 35W each.
     C.   Acrylic prismatic lens.
     D.   277v on all floors.
     E.   2' x 2' U-tube fixtures in corridors #2SP Air 2U40 with electronic
          energy saving ballasts.

14.  LIGHT SWITCH ASSEMBLY
     A.   Leviton #5600 series switch - two each.
     B.   Switch paired in double gang box to meet Title 24 requirements.
     C.   Switch height @ 48" AFF to center line of switch, and
     D.   Color: white with white switch plate cover.

15.  ELECTRICAL DUPLEX WALL OUTLET
     A.   Leviton to match #5600 series, duplex receptacle - one each.
     B.   Color: white with white switch plate cover.
     C.   Six outlets per circuit, 120v, mounted vertically @ 12" AFF to center
          line of outlet.

16.  TELEPHONE/COMPUTER WALL OUTLET
     A.   Single gang outlet box in wall, mounted vertically @ 12" AFF to
          center.

<PAGE>

EXHIBIT B (CONT'D)

     B.  3/4" metal conduit from outlet box to just above ceiling grid with
         pull string, and
     C.  Cover plate by contractor to match #5600 series, electrical white.

17.  EXIT SIGNS
     A.  Illuminated Lithonia FTE-SW2G277.
     B.  Color: white.
     C.  Green lens.

18.  LIFE SAFETY
     Any tenant security requirement for other than standard speaker
     installation, e.g. D.O.D. contract, one-way horns, or end-line resistors,
     shall be installed, tested and approved at the sole expense of the
     tenant. The above will include dedicated connection to the Building Life
     Safety Control panel and all devices and material required for such
     connection.
     A.  Speaker: Atlas/Soundolier Model, UH170C-US1-8 with U95-8 Backbox.
     B.  Smoker Detector: Honeywell Model TC-100, or Pyrotector Model
         700924AB&C
     C.  Manual Fire Alarm Stations: Honeywell Model S464B

19.  SPRINKLERS
     A. Semi-recessed chrome sprinkler.

20.  PLUMBING
     A.  Water Heater: I.S.B. Model #W-152, 2.5 Gals with brass unions for
         every disconnect.
     B.  Garbage Disposal: I.S.E. Model #333
     C.  Sink: Just Single Compartment Model #S1.2019 B-GR
     D.  Faucet: Delta Model #100
     E.  Water shut-off valves in ceiling for each fixture installed (Ball
         type).

21.  MECHANICAL
     A.  Air Conditioning Duct Specifications:

               i.  All duct tape to be removed from joints and connections.
              ii.  All joints are to be inspected and sealed if there is any
                   indication of a leak.
             iii.  All hanger straps shot to the slab above are to be
                   one-piece construction forming a trapeze to support the
                   duct, and must be sealed.
              iv.  Where ducts are touching, insulation shall be placed
                   between the ducts to insure against vibration and noise.
               v.  Where flex duct joins the hard duct, spin ins, or other
                   metal fittings, these ducts shall be screwed and banded,
                   and sealed with Air-Bol, Teledyne-105.
              vi.  Where flex duct is hung with a thin strap, a larger piece
                   of metal shall be used as a sleeve between the duct and
                   the strap to insure against collapsing of the flex duct.
             vii.  No run of flex duct is to be over 10' in length, and two
                   pieces of flex duct joined together will not be accepted.
            viii.  Discretion shall be used in making bends in flex duct over
                   a 90-degree radius.
              ix.  All duct work is to be supported independently with
                   hangers shot to the slab above, or as per mechanical code.
               x.  Any leaks found in existing duct work must be sealed with
                   Teledyne-105.
              xi.  Room thermostats to be Johnson 14002 fully proportional
                   and equipped with set point.
             xii.  No air conditioning zone is to overlap into an adjacent
                   suite.
            xiii.  Air balance reports are to be turned in to the Project
                   Manager's office within 10 days after job completion.
             xiv.  All chilled water air handling units are to be provided
                   with separate condensate pans, larger than the air handler
                   itself, suspended independently of the air handler. Air
                   handler drain to drain into the lower pan which will be
                   provided with an insulated, dedicated, copper drain
                   accessible for cleanout from inside pan.
              xv.  All tenant air handling units are to be installed with
                   controls to secure chill water flow through unit when fan
                   unit is off.
             xvi.  All tenant A/C units are to be monitored by the G.E.
                   energy management controller.
            xvii.  Any variance from the plans are to be clearly and accurately
                   noted on a plan to be given to the Chief Engineer or
                   Assistant Chief Engineer upon job completion.
           xviii.  Unless absolutely necessary, no water cooled towers will
                   be allowed for tenant auxiliary air conditioning.

                                   Page 3

<PAGE>

EXHIBIT B (CONT'D)

     B.  Thermostats

               i.  Johnson Controls: Model #T4002 - 201 (DA) Cover #T4002 -
                   2139 (Horiz) Backplate - #T4002 - 124
              ii.  Conference Rooms - Johnson Controls:
                     Model - #T4002 - 201 (DA)
                     Cover - #T4502 - 1737
                     (Horiz/Ext./Adj)
                     Backplate - #T4002-124

     C.  HVAC Diffusers
               i.  Supply air: Anemustat PI.D
              ii.  Return Air: Perforated lay-in type, 24"x24", Tru-Aire
                   #900DBR, with sound insulating fiberglass boots.

     D.  Return Air Exhaust Fan
               i.  Pace model #DD450T with speed control, sound trap and egg
                   crate grills.
              ii.  An exhaust fan is installed in each conference room (one
                   per 650 sq ft) as building standard.

     E.  Variable Air Volume Boxes
               i.  Permeter Boxes by Metalaire, Model #200 DD, direct acting
                   with strip heaters.
              ii.  Interior Permeter Boxes by Metalaire, Model #200 TH,
                   direct acting.

22.  DRAPERIES
     A.  Fabric: Maharem.
     B.  Style: "Crete".
     C.  Specifications: Full height fabric material (68% verel modacryllic,
         28% rayon, 4% nylon) with track attached to ceiling at all exterior
         windows.
     D.  Color: 01-white.
     E.  Mini-blinds - 1" horizontal Ball blinds with tilt control and
         drawstring.

23.  TENANT DOOR SIGNAGE & DIRECTORY SIGNAGE
     A.  Per building landlord.

24.  SPACE PLANNING AND CONSTRUCTION DOCUMENTATION TO BE PROVIDED TO CONTRACTOR
     A.  One space plan designed to incorporate building standard materials
         and initial tenant functional and aesthetic requirements as
         presented by the tenant at the space planning meeting, and
     B.  Two sets of construction documents needed for building permitting
         using building standard materials and the tenant approved space plan
         as the basis for the design.
     C.  Permit application with Plan Check sets.

25.  STANDARDS
     Landlord shall have the right to substitute any of the above standard
     improvements in an equal and/or like manner.

26.  PERMITS
     Contractor of record is responsible for the following permits:
     A.  Building Permit
     B.  Electrical Permit
     C.  Telephone Cable Permit
     D.  Data Cable Permit
     E.  Life and Safety Permit
     F.  Others as may be required in the performance of the Work.

                                   Page 4

<PAGE>

<TABLE>
<S><C>
------------------------------------------------------------------------------------------------------------------------------------
                                       PRELIMINARY TENANT IMPROVEMENT CONSTRUCTION BUDGET
------------------------------------------------------------------------------------------------------------------------------------

PROPERTY: ROYAL AIRPORT BUILDING   TENANT: PARAGON MANAGEMENT SYSTEMS                                QUALIFICATIONS

OWNER: RIS                         SUITE: 1100                                       -----------------------------------------------
MANAGING AGENT: CHARLES DUNN       SQUARE FEET (Usable):   8,812                     THE CONSTRUCTION BUDGET DOES NOT INCLUDE THE
PROPERTY MANAGER: STEVE KARAS      SQUARE FEET (Rentable): 7,598                     FOLLOWING:
                                   T1 ALLOWANCE:      $165,646.00                    1) OVERTIME WORK.
ESTIMATED                          T1 ALLOWANCE/R&F:      $24.32                     2) TELEPHONES, COMPUTERS, NOR THEIR RESPECTIVE
                                                                                        CABLE INSTALLATION.
SUBMISSION DATE: JANUARY 28, 1999                                                    3) 24 HOUR A.C. UNITS, NEW CEILING GRID & TILE,
                                                                                        NOR NEW LIGHT FIXTURES THROUGHO
------------------------------------------------------------------------------------ 4) TRADE FIXTURES, ALARM SYSTEM, FURNITURE NOR
                            PROJECT COST SUMMARY                                        MOVING EXPENSES.
------------------------------------------------------------------------------------ 5) WALL COVERING, NOR ELECTRICAL FLOOR
                                BLD     ABOVE             TOTAL   PRIME                 MONUMENTS.
                                STD      STD     TOTAL     COST  CONTRACT    OTHER   6) ELECTRICAL SUBPANELS.
--------------------- ----- ----------- ----- ----------- ------ --------- --------- 7) FURNITURE PARTITIONS.
  LINE ITEM                     COST    COST     COST      USF.   AMOUNT   CONTRACTS 8) PROVIDING ELECTRICITY THROUGH THE FLOOR TO
--------------------- ----- ----------- ----- ----------- ------ --------- ---------    POWER THE PARTITIONS.
ENGINEERING FEES:             $3,406.00         $3,406.00   0.50                     10)WORK STATIONS, NOR DESKS.
ARCHITECTURALS:               $8,515.00         $8,515.00   1.25                     11)ELECTRICAL RACEWAYS FOR THE TRAINING ROOM
DEMOLITION:                     $930.00           $500.00   0.14                        DESKS.
DRYWALL:                     $16,280.00        $16,280.00   2.38                     12)PARABOLIC LIGHT FIXTURES.
CEILING PAINTING:             $3,747.00
CEILING:                      $4,180.00         $4,180.00   0.81                     -----------------------------------------------
DOORS ASSEMBLIES:            $17,650.00        $17,650.00   2.59                                      ITEMS TO NOTE
GLAZING:                      $1,000.00                                              -----------------------------------------------
CORRIDOR FINISHES:            $1,660.00         $1,660.00   0.24                     1) This a preliminary budget base upon City
WINDOW COVERING:                $410.00           $410.00   0.06                        Spaces' pricing plan dated 1/27/00. Once
PLUMBING:                     $1,391.00         $1,391.00   0.20                        construction drawings have secured a more
ELECTRICAL:                  $24,750.00        $24,750.00   3.63                        precise estimate will be submitted.
LIFE SAFETY SYSTEMS:          $5,900.00         $5,900.00   0.87                     2) The existing light fixtures, ceiling grid &
FIRE SUPPRESSION                                                                        tile, HVAC system, and sprinkler system will
  SYSTEMS:                    $3,570.00         $3,570.00   0.52                        be reused.
HVAC ALLOWANCE:               $9,475.00         $9,475.00   1.39                     3) The projection screen allowance includes the
PAINTING:                     $3,810.00         $3,810.00   0.56                        following electrical connection, structural
PROJECTION SCREEN                                                                       support, material cost of the screen and the
  ALLOWANCE:                  $2,480.00         $2,480.00   0.36                        labor to install it.
FLOOR COVERINGS:             $15,458.00        $15,458.00   2.27                     4) Pursuant to Tom Torabits request, this
BOOKSHELVES                                                                             preliminary budget includes the cost to
  ALLOWANCE:                  $3,360.00         $3,360.00   0.49                        paint the existing ceiling tile and grid.
MILLWORK ALLOWANCE:           $2,780.00         $2,780.00   0.41                     5) This preliminary budget includes allowances
SECURITY:                     $1,100.00         $1,100.00   0.16                        for the bookshelves outside the training
MISCELLANEOUS:                  $890.00           $890.00   0.13                        room and for the kitchen cabinets.
PERMIT FEES:                  $2,900.00         $2,900.00   0.43                     -----------------------------------------------
GENERAL CONDITIONS:           $8,717.00         $8,717.00   1.28
CONTRACTOR'S FEE:             $7,995.00         $7,995.00   1.17                            ESTIMATED CONSTRUCTION SCHEDULE
--------------------- ----- ----------- ----- ----------- ------ --------- --------- -----------------------------------------------
       SUBTOTAL:      $0.00 $153,163.00 $0.00 $153,163.00 $22.48                             CONSTRUCTION DRAWINGS:  3 WEEKS
--------------------- ----- ----------- ----- ----------- ------ --------- ---------         BIDDING/PLAN CHECK:     3 WEEKS
CONTINGENCY:                  $4,585.00         $4,585.00  $0.67                             CONSTRUCTION:           8 WEEKS
MANAGEMENT FEE:               $7,888.00         $7,888.00  $1.16                                                   ----------
===================== ===== =========== ===== =========== ====== ========= =========             TOTAL:             14 WEEKS
TOTAL:                $0.00 $165,646.00 $0.00 $165,646.00 $24.32                     -----------------------------------------------
--------------------- ----- ----------- ----- ----------- ------ --------- ---------
                            $24.32U.S.F            $24.32
                            -----------       -----------        --------- ---------

___________________________     _______________   ______________________
CHARLES DUNN (CONSTRUCTION)                       HASEKO (ASSET MANAGER)

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</TABLE>

CHARLES DUNN CONSTRUCTION MANAGEMENT DIVISION                    PAGE 1
<PAGE>

                            EXHIBIT "C"

                     TERM COMMENCEMENT LETTER

Date:        July 11, 2000

To:          Mr. Tom Tornbi
             Senior Vice President/Principal
             1411 West 190th Street, Suite 450
             Gardena, CA 90248

Re:          TERM/ACCEPTANCE OF PREMISES

             In accordance with Paragraph 2 of your lease dated March 10,
2000, please acknowledge your acceptance of possession of your Premises and
agreement that the Commencement Date of the lease is July 10, 2000, your
Termination Date of the lease is July 9, 2005.

             Tenant hereby agrees to forward all necessary and normal
day-to-day lease requirements, such as rent and other charges, Insurance
Certificates, property tax payments, etc., to the following, unless otherwise
designated by Landlord:

                    Charles Dunn Company
                    350 South Figueroa Street, Suite 233
                    Los Angeles, California  90071

             Tenant hereby agrees with the dates set forth above and further
acknowledges its acceptance of possession of the Premises.

TENANT:                                 LANDLORD:

-------------------------               Royal Investment Systems
-------------------------               Partnership (01)

By: /s/ J. Timothy Romer                By: /s/ Stephen M. Karas
   ---------------------------              ------------------------
Name: J. Timothy Romer                  Name: Stephen M. Karas
Title: CFO                              Title: Senior Portfolio manager
Date:  July 20, 2000                    Date:  8/1/00

<PAGE>

                               EXHIBIT "D-1"

            IMPROVEMENTS TO EXISTING PREMISES - LANDLORD BUILD

1.     GENERAL PROVISIONS RELATING TO PREPARATION OF SPACE STUDY AND

CONSTRUCTION DOCUMENTS.

       1.1   Tenant and Landlord shall each cooperate with the other and with
their representatives in the preparation of the Space study ("Space Study"),
the preparation of the plans and specifications ("Construction Documents")
for the construction of the Existing Premises for Tenant ("Tenant
Improvements"), and construction of the Tenant Improvements.

       1.2   Tenant shall meet with City Spaces, Inc. (the "Space Planner")
in order that a Space Study showing the location of all partitions and doors
may be prepared by the Space Planner, such space study to be approved by
Tenant (which approval shall appear in writing on the Space Study in a form
satisfactory to Landlord) and submitted to Landlord on or before ten (10)
business days after the execution of this Fourth Amendment. Failure of
Landlord to approve or disapprove in writing such Space Study (specifying the
reasons for any disapproval, which may include the estimated costs of the
Tenant Improvements) and the delivery of such approval or disapproval to
Tenant within five (5) business days after receipt of the same shall be
conclusively deemed a disapproval thereof. If Landlord disapproves such Space
Study, Space Planner shall revise and resubmit the same ("First Revised Space
Study") to Landlord for approval on or before seven (7) business days after
receipt of Landlord's disapproval. Failure of Landlord to approve or
disapprove in writing the First Revised Space Study (specifying the reasons
for any disapproval, which may include the estimated cost of the Tenant
Improvements) and the delivery of such approval or disapproval to Tenant
within five (5) business days after receipt of the same shall be conclusively
deemed disapproval thereof. If Landlord disapproves the First Revised Space
Study, Space Planners shall again revise and resubmit the same ("Second
Revised Space Study") to Landlord for approval. The procedure and timing for
obtaining Landlord's approval of the Second Revised Space Study and any
subsequent revised Space Study shall be the same as hereinabove provided for
in the First Revised Space Study. Revision and resubmission of the Space
Study shall continue as set forth above until the Space Study is approved by
Landlord. Each revised Space Study submitted to Landlord for approval shall
include thereon Tenant's written approval thereof in a form satisfactory to
Landlord.

       1.3   Within fifteen (15) business days after approval of the Space
Study by Landlord, Space Planner shall prepare and submit to Landlord for
approval a complete set of Construction Documents, which shall (i) be based
upon the Space Study approved by Landlord, (ii) include Tenant's written
approval thereof in a form satisfactory to Landlord, (iii) meet all items and
contain all information necessary to obtain all building and other permits
and governmental license required for the proper execution and completion of
the Tenant Improvements, and (iv) include, without limitation, the location
of doors, partitions, ceilings, lighting, heating, ventilation and air
conditioning, electrical and telephone outlets, plumbing fixtures, heavy
floor loads and any other special requirements, the "Finish Schedule" (as
that term is hereinafter defined) and other construction detail. Tenant shall
be required to utilize building standard window coverings, doors to exterior
hallways and suite entrance detail, and no materials used in the Tenant
Improvements shall deviate from building standard quality, without first
obtaining Landlord's written consent. In connection with the preparation of
the

<PAGE>

Construction Documents, Space Planner shall meet with the building engineers
designated by Landlord from time to time, who shall include, but not be
limited to plumbing, electrical and mechanical engineers, in order that the
engineering plans and/or specifications may be prepared for the Existing
Premises, which plans and/or specifications shall be part of the Construction
Documents. For the purposes of this EXHIBIT "D-1", the term "Finish Schedule"
shall mean the schedule prepared by Space Planner which locates and specifies
the colors, materials and special finishes, if any, for all wall and floor
coverings. Failure of Landlord to approve or disapprove the Construction
Documents in writing (specifying the reasons for any disapproval, which may
include the estimated cost of the Tenant Improvements) within five (5)
business days after receipt of the Construction Documents shall be
conclusively deemed a disapproval thereof by Landlord. If Landlord
disapproves the Construction Documents, Space Planner shall revise and
resubmit the same ("First Revised Construction Documents") to Landlord for
approval on or before five (5) business days after receipt of Landlord's
disapproval. Failure of Landlord to approve or disapprove in writing the
First Revised Construction Documents (specifying the reasons for any
disapproval, which may include the estimated cost of the Tenant Improvements)
and the delivery of such approval or disapproval to Tenant within five (5)
business days shall be conclusively deemed disapproval thereof. If Landlord
disapproves the First Revised Construction Documents, Space Planner shall
again revise and resubmit the same ("Second Revised Construction Documents")
to Landlord for approval. The procedure and timing for obtaining Landlord's
approval of the Second Revised Construction Documents and any subsequent
revised Construction Documents shall be the same as hereinabove provided for
the First Revised Construction Documents. Revision and resubmission of the
Construction Documents shall continue as set forth above until the
Construction Documents are approved by Landlord. Each set of revised
Construction Documents submitted to Landlord for approval shall include
Tenant's written approval thereof in a form satisfactory to Landlord.

       1.4   Landlord's approval of matters relating to Tenant Improvements
shall not release or relieve Tenant from its obligations pursuant to Section
2 of this EXHIBIT D-1.

2.     GENERAL PROVISIONS RELATING TO CONSTRUCTION

       2.1   Landlord shall cause the Tenant Improvements to be installed by
Landlord's Contractor (as hereinafter defined) pursuant to the Construction
Documents approved by Landlord. Landlord shall obtain a bid for the
construction of the Tenant Improvements in accordance with the Construction
Documents from three (3) licensed general contractors two (2) of which shall
be chosen by Landlord in its sole and absolute discretion and one (1) of
which may be selected by Tenant with Landlord's prior written approval of
said contractor, and shall deliver to Tenant a copy of the bids so obtained.
The general contractor shall be selected by Landlord in Landlord's sole and
absolute discretion ("Landlord's Contractor"). Tenant shall pay Landlord a
fee ("Supervision Fee") on account of the supervision of Landlord's
Contractor and Space Planner, equal to five percent (5t%) of the amount of
the bid from Landlord's Contractor and Space Planner, which amount shall be
added to and included in the bid delivered to Tenant for approval. Tenant
shall within five (5) business days of receipt of said bid either (i) approve
said bid in a writing delivered to Landlord, or (ii) provide Space Planner
with a detailed list of revisions to the approved Construction Documents so
as to reduce the cost of construction of the Tenant Improvements and if
Tenant provides the Space

                                   -2-

<PAGE>

Planner with a detailed list of revisions, then the Space Planner shall
revise the Construction Documents within five (5) business days thereafter.
Failure of Tenant to do either of the foregoing shall be conclusively deemed
an approval of the bid delivered to Tenant by Landlord. If Tenant disapproves
said bid and submits to Landlord the revisions described in (ii) above,
Landlord shall obtain from Landlord's Contractor a revised bid for the
construction of the Tenant Improvements in accordance with the revised
Construction Documents and deliver to Tenant a copy of the revised bid which
shall have added to and included with it a revised Supervision Fee ("First
Revised Bid"). Tenant shall within three (3) business days of receipt of the
First Revised Bid either (x) approve the First Revised Bid in a writing
delivered to Landlord, or (y) again provide Space Planner with a detailed
list of revisions to the approved Construction Documents so as to further
reduce the cost of construction of the Tenant Improvements and if Tenant
provides the Space Planner with a detailed list of revisions, then the Space
Planner shall revise the Construction Documents within five (5) business days
thereafter. Failure of Tenant to do either of the foregoing shall be
conclusively deemed an approval of the First Revised bid. If Tenant
disapproves the First Revised Bid and submits the revisions described in (y)
above, Landlord shall again obtain from Landlord's Contractor a revised bid
for the construction of the Tenant Improvements in accordance with the
revised Construction Documents and deliver to Tenant a copy of the revised
bid which shall have added to and included with it a revised Supervision Fee
("Second Revised Bid"). The procedure and timing for obtaining Tenant's
approval of the Second Revised Bid and any subsequent revised bid shall be
the same as for the First Revised Bid. Revision and bidding of the Tenant
Improvements shall continue as set forth above until a revised bid is
approved by Tenant.

    2.2  Tenant shall pay to Landlord prior to the commencement of any work
on the Tenant Improvements an amount equal to the amount, if any, by which
the bid (including the Supervision Fee) approved by Tenant exceeds the
allowance referred to in Paragraph 2.11 below. No change in the Construction
Documents shall be made ("Change Order") without the prior written consent of
Landlord. Concurrent with any request for approval of a Change Order of
$1,000.00 or more, and any request for approval of Change Orders aggregating
$1,000.00 or more, Tenant shall pay to Landlord an amount equal to the cost
of such Change Order, plus a Supervision Fee equal to five percent (5%) of the
cost of such Change Order. In addition, if at any time during the work
Landlord reasonably believes the allowance referred to in Paragraph 2.11
below, plus any payments by Tenant to Landlord on account of the Tenant
Improvements, are not sufficient to fully pay for the cost thereof, plus the
Supervision Fee, Landlord shall notify Tenant thereof and Tenant shall,
within five (5) days after the date of any such notice, pay to Landlord the
amount of any such deficiency.

    2.3  Landlord shall cause Landlord's Contractor to perform its work
diligently and in a first-class workmanlike manner in compliance with
applicable laws and codes. Neither Landlord nor Landlord's Contractor shall
be liable for any direct or consequential damages resulting from delays in
construction beyond the reasonable control of Landlord's Contractor,
including, but not limited to, strikes, availability of labor or materials,
or delays by Tenant or anyone performing services on behalf of Tenant.

    2.4  All work shall be completed at the earliest possible date, subject
to delays beyond the control of Landlord and/or Landlord's Contractor.

                                      -3-

<PAGE>

    2.5  Tenant agrees at Tenant's expense to obtain and maintain public
liability and workers' compensation insurance adequate to fully protect
Tenant, Landlord and Landlord's Contractors (by naming Landlord, Master
Landlord and Landlord's Contractors as additional insureds), from and against
any and all liability for death or injury to persons or damage to property
caused in or about the Existing Premises from Tenant performing its
obligations under the Lease, including installation by Tenant of its fixtures
and equipment. Tenant shall deliver to Landlord prior to the commencement of
any work on the Tenant Improvements a certificate of insurance.

    2.6  Tenant hereby acknowledges Landlord's right to enter on to the
Existing Premises for the purposes of completing the Tenant Improvements.
During Landlord's construction of the Tenant Improvements, Landlord shall use
commercially reasonable efforts to minimize interference with Tenant's use
and enjoyment of the Existing Premises, and Tenant shall use commercially
reasonable efforts to minimize interference with Landlord's construction of
the Tenant Improvements. Tenant shall hold Landlord and/or Landlord's
Contractor harmless and indemnify Landlord and/or Landlord's Contractor for
any lesser damage to Tenant's equipment, fixtures or goods and for injury to
any persons unless caused by the active negligence of Landlord and/or
Landlord's Contractor or its agents.

    2.7  Intentionally Omitted.

    2.8  Intentionally Omitted.

    2.9  Intentionally Omitted.

    2.10 The Tenant Improvements, including, but not limited to, the
preparation of the Space Study and the Construction Documents, and all costs
and expenses related thereto shall be at Tenant's sole cost and expense,
except as otherwise provided in this Paragraph 2.10 and in Paragraph 2.11
below. Tenant shall pay one-half the cost of installing any new interior
demising walls. Without cost or expense to Tenant, Landlord shall (i) bring
electricity to the distribution point on the floor, (ii) bring a main
air-conditioning duct to the perimeter of the Premises, (iii) furnish
construction sprinklers only, and (iv) install Building standard mini-blinds
on all exterior windows.

    2.11 Landlord agrees to provide Tenant with an allowance of up to (Eighty
Thousand Eight Hundred Nine and 50/100 Dollars ($80,809.50) (based on Eight
and 50/100 Dollars [$8.50] per usable square foot of space in the Premises)
for the Tenant Improvements pursuant to this Exhibit "D-1"; provided,
however, in no event shall more than an aggregate of $7,500 from such allowance
be expended in connection with the preparation and revision of the Space
Study and/or Construction Documents. Landlord shall administer all payments
due to Landlord's Contractor. Tenant shall be responsible for all other costs
incurred in connection with building out the Premises.

    2.12 In no event shall Tenant be entitled to any payment, credit, refund
or other sum by or from Landlord on account of any cost savings realized by
Landlord in connection with the construction of the Tenant Improvements.

                                      -4-

<PAGE>

                                 EXHIBIT "D-2"

                IMPROVEMENTS TO EXISTING PREMISES - TENANT BUILD

1.  GENERAL PROVISIONS RELATING TO PREPARATION OF SPACE STUDY AND
CONSTRUCTION DOCUMENTS.

    1.1  Tenant and Landlord shall each cooperate with the other and with
their representatives in the preparation of the space study ("Space Study"),
the preparation of the plans and specifications ("Construction Documents")
for the construction of the Existing Premises for Tenant ("Tenant
Improvements"), and construction of the Tenant Improvements.

    1.2  Tenant shall meet with City Spaces, Inc. (the "Space Planner") in
order that a Space Study showing the location of all partitions and doors may
be prepared by the Space Planner, such space study to be approved by Tenant
(which approval shall appear in writing on the Space Study in a form
satisfactory to Landlord) and submitted to Landlord on or before ten (10)
business days after the execution of this Fourth Amendment. Failure of
Landlord to approve or disapprove in writing such Space Study (specifying the
reasons for any disapproval, which may include the estimated cost of the
Tenant Improvements) and the delivery of such approval or disapproval to
Tenant within five (5) business days after receipt of the same shall be
conclusively deemed a disapproval thereof. If Landlord disapproves such Space
Study, Space Planner shall revise and resubmit the same ("First Revised Space
Study") to Landlord for approval on or before seven (7) business days after
receipt of Landlord's disapproval. Failure of Landlord to approve or
disapprove in writing the First Revised Space Study (specifying the reasons
for any disapproval, which may include the estimated cost of the Tenant
Improvements) and the delivery of such approval or disapproval to Tenant
within five (5) business days after receipt of the same shall be conclusively
deemed disapproval thereof. If Landlord disapproves the First Revised Space
Study, Space Planner shall again revise and resubmit the same ("Second
Revised Space Study") to Landlord for approval. The procedure and timing for
obtaining Landlord's approval of the Second Revised Space Study and any
subsequent revised Space Study shall be the same as hereinabove provided for
in the First Revised Space Study. Revision and resubmission of the Space
Study shall continue as set forth above until the Space Study is approved by
Landlord. Each revised Space Study submitted to Landlord for approval shall
include thereon Tenant's written approval thereof in form satisfactory to
Landlord.

    1.3  Within fifteen (15) business days after approval of the Space Study
by Landlord, Space Planner shall prepare and submit to Landlord for approval
a complete set of Construction Documents, which shall (i) be based upon the
Space Study approved by Landlord, (ii) include Tenant's written approval
thereof in a form satisfactory to Landlord, (iii) meet all items and contain
all information necessary to obtain all building and other permits and
governmental licenses required for the proper execution and completion of the
Tenant Improvements, and (iv) include, without limitation, the location of
doors, partitions, ceilings, lighting, heating, ventilation and air
conditioning, electrical and telephone outlets, plumbing fixtures, heavy
floor loads and any other special requirements, the "Finish Schedule" (as
that term is hereinafter defined) and other construction detail. Tenant
shall be required to utilize building standard window

                                      -1-

<PAGE>

coverings, doors to exterior hallways and suite entrance detail, and no
materials used in the Tenant Improvements shall deviate from building
standard quality, without first obtaining Landlord's written consent. In
connection with the preparation of the Construction Documents, Space Planner
shall meet with the building engineers designated by Landlord from time to
time, who shall include, but not be limited to plumbing, electrical and
mechanical engineers, in order that the engineering plans and/or
specifications may be prepared for the Existing Premises, which plans and/or
specifications shall be part of the Construction Documents. For the purposes
of this EXHIBIT "D-2", the term "Finish Schedule" shall mean the schedule
prepared by Space Planner which locates and specifies the colors, materials
and special finishes, if any, for all wall and floor coverings. Failure of
Landlord to approve or disapprove the Construction Documents in writing
(specifying the reasons for any disapproval, which may include the estimated
cost of the Tenant Improvements) within five (5) business days after receipt
of the Construction Documents shall be conclusively deemed a disapproval
thereof by Landlord. If Landlord disapproves the Construction Documents,
Space Planner shall revise and resubmit the same ("First Revised Construction
Documents") to Landlord for approval on or before five (5) business days
after the receipt of Landlord's disapproval. Failure of Landlord to approve
or disapprove in writing the First Revised Construction Documents (specifying
the reasons for any disapproval, which may include the estimated cost of the
Tenant Improvements) and the delivery of such approval or disapproval to
Tenant within five (5) business days shall be conclusively deemed disapproval
thereof. If Landlord disapproves the First Revised Construction Documents,
Space Planner shall again revise and resubmit the same ("Second Revised
Construction Documents") to Landlord for approval. The procedure and timing
for obtaining Landlord's approval of the Second Revised Construction
Documents any any subsequent revised Construction Documents shall be the same
as hereinabove provided for the First Revised Construction Documents.
Revision and resubmission of the Construction Documents shall continue as set
forth above until the Construction Documents are approved by Landlord. Each
set of revised Construction Documents submitted to Landlord for approval
shall include Tenant's written approval thereof in a form satisfactory to
Landlord.

     1.4  Landlord's approval of matters relating to Tenant Improvements
shall not release or relieve Tenant from its obligations pursuant to Section
2 of this EXHIBIT D-2.

2.   GENERAL PROVISIONS RELATING TO CONSTRUCTION.

     2.1  Tenant shall cause the Tenant Improvements to be installed by a
licensed general contractor selected by Tenant and approved in writing by
Landlord ("Tenant's Contractor") pursuant to the Construction Documents
approved by Landlord. The construction and installation of the Tenant
Improvements shall be in strict compliance with the provisions of Exhibit
"D-2A" attached hereto and made a part hereof. Tenant shall obtain a bid for
the construction of the Tenant Improvements in accordance with the
Construction Documents and shall deliver to Landlord a copy of the bid so
obtained for Landlord's approval. Tenant shall pay Landlord a fee
("Supervision Fee") on account of the supervision of the Tenant Improvements
and Space Planner, equal to five percent (5%) of the aggregate Tenant
Improvement costs and space planning costs (preparation of the Space Study and
Construction Documents), which amounts shall be added to and included in the
bid delivered to Tenant and Landlord for approval. Tenant shall within five
(5) business days of receipt of said bid either (i) approve of said bid in a
writing

                                       -2-

<PAGE>

delivered to Landlord, or (ii) provide Space Planner with a detailed list of
revisions to the approved Construction Documents so as to reduce the cost of
construction of the Tenant Improvements and if Tenant provides the Space
Planner with a detailed list of revisions, then the Space Planner shall
revise the Construction Documents within five (5) business days thereafter.
Failure of Tenant to do either of the foregoing shall be conclusively deemed
an approval of the bid. If Tenant disapproves said bid and submits to
Landlord the revisions described in (ii) above, Tenant shall obtain from
Tenant's Contractor a revised bid for the construction of the Tenant
Improvements in accordance with the revised Construction Documents which
shall have added to and included with it a revised Supervision Fee ("First
Revised Bid"). Tenant shall within three (3) business days of receipt of the
First Revised Bid either (x) approve the First Revised Bid in a writing
delivered to Landlord for Landlord's approval, or (y) again provide Space
Planner with a detailed list of revisions to the approved Construction
Documents so as to further reduce the cost of construction of the Tenant
Improvements and if Tenant provides the Space Planner with a detailed list of
revisions, then the Space Planner shall revise the Construction Documents
within five (5) business days thereafter. Failure of Tenant to do either of
the foregoing shall be conclusively deemed an approval of the First Revised
Bid. If Tenant disapproves the First Revised Bid and submits the revisions
described in (y) above, Tenant shall again obtain from Tenant's Contractor a
revised bid for the construction of the Tenant Improvements in accordance
with the revised Construction Documents and deliver to Landlord a copy of the
revised bid for Landlord's approval which shall have added to and included
with it a revised Supervision Fee ("Second Revised Bid"). The procedure and
timing for obtaining Tenant's approval of the Second Revised Bid and any
subsequent revised bid shall be the same as for the First Revised Bid.
Revision and bidding of the Tenant Improvements shall continue as set forth
above until a revised bid is approved by Tenant and Landlord. Landlord shall
not be liable for any defect or failure resulting from Tenant's Contractor's
negligence or willful misconduct, or otherwise be liable for any direct or
consequential damages suffered by Tenant, or any party claiming through
Tenant, due to the action or inaction of Tenant's Contractor.

     2.2  Tenant shall pay to Landlord prior to the commencement of any work
on the Tenant Improvements an amount equal to the amount, if any, by which
the bid (including the Supervision Fee) approved by Tenant and Landlord
exceeds the allowance referred to in Paragraph 2.11 below. No change in the
Construction Documents shall be made ("Change Order") without the prior
written consent of Landlord. Concurrent with any request for approval of a
Change Order of $1,000.00 or more, and any request for approval of Change
Orders aggregating $1,000.00 or more, Tenant shall pay to Landlord an amount
equal to the cost of such Change Order, plus a Supervision Fee equal to five
percent (5%) of the cost of such Change Order. In addition, if at any time
during the work, Landlord reasonably believes the allowance referred to in
Paragraph 2.11 below, plus any payments by Tenant to Landlord on account of
the Tenant Improvements, are not sufficient to fully pay for the cost
thereof, plus the Supervision Fee, Landlord shall notify Tenant thereof and
Tenant shall, within five (5) days after the date of any such notice, pay to
Landlord the amount of any such deficiency.

     2.3  Tenant shall cause Tenant's Contractor to perform its work
diligently and in a first-class workmanlike manner in compliance with
applicable laws and codes. Landlord shall not be liable for any direct or
consequential damages resulting from delays in construction beyond its
reasonable control, including, but not limited to, strikes,

                                       -3-
<PAGE>

availability of labor or materials, or delays by Tenant or anyone performing
services on behalf of Tenant.

     2.4   All work shall be completed at the earliest possible date.

     2.5   Tenant shall cause Tenant's Contractor and any other contractor
performing work at the request of Tenant to obtain and maintain public
liability and workers' compensation insurance adequate to fully protect
Tenant, Landlord and Master Landlord (by naming Landlord and Master Landlord
as additional insureds), from and against any and all liability for death or
injury to persons or damage to property caused in or about the Existing
Premises from their construction of the Tenant Improvements (including
installation by Tenant of its fixtures and equipment). Tenant shall deliver
to Landlord prior to the commencement of any work on the Tenant Improvements
a certificate of insurance.

     2.6  Tenant hereby acknowledges that it is currently in possession of
the Existing Premises and that Landlord has no obligation to perform any
improvement work therein.

     2.7   Intentionally Omitted.

     2.8   Intentionally Omitted.

     2.9   Intentionally Omitted.

     2.10  The Tenant Improvements, including, but not limited to, the
preparation of the Space Study and the Construction Documents, and all costs
and expenses related thereto shall be at Tenant's sole cost and expense,
except as otherwise provided in this Paragraph 2.10 and in Paragraph 2.11
below. Tenant shall pay one-half the cost of installing any new interior
demising walls. Without cost or expense to Tenant, Landlord shall (i) bring
electricity to the distribution point on the floor, (ii) bring a main
air-conditioning duct to the perimeter of the Premises, (iii) furnish
construction sprinklers only and (iv) install Building standard mini-blinds
on all exterior windows.

     2.11  Landlords agrees to provide Tenant with an allowance of up to
(Eighty Thousand Eight Hundred Nine and 50/100 Dollars ($80,809.50) (based on
Eight and 50/100 Dollars [$8.50] per usable square foot of space in the
Premises) (the "Allowance") for the Tenant Improvements pursuant to this
Exhibit "D-2"; provided, however, in no event shall more than an aggregate of
$7,500 from such Allowance be expended in connection with the preparation and
revision of the Space Study and/or Construction Documents. Landlord shall
administer all payments due to Tenant's Contractor. Tenant shall be
responsible for all other costs incurred in connection with building out the
Premises. Payments to Tenant's Contractor shall be made by means of joint
checks issued by Landlord up to an amount equal to the Allowance. Landlord
shall make such payments not more often than once per calendar month, and
provided that appropriate invoices as described in subsection (i) below are
submitted to Landlord by the 25th of each month, such payments shall be
disbursed to Tenant's Contractor within fifteen (15) days after receipt by
Landlord of (i) copies of all invoices from Tenant's Contractor and all
subcontractors and material suppliers, (ii) conditional lien releases from
each of the parties specified in (i) above, and (iii) unconditional lien
releases for any previous

                                      -4-

<PAGE>

Payments made by Landlord to any of the parties specified in (i) above.
Landlord shall have the right to retain ten percent (10%) of each payment
otherwise due to Tenant's Contractor, which retainage shall be disbursed to
Tenant's Contractor only after the Tenant Improvements have been fully
completed and reasonably approved by Landlord, and Landord has received all
final lien releases from the parties specified in subsection (i) above.
Notwithstanding anything to the contrary herein, Landlord shall not be
required to pay the Allowance, or any portion or installment thereof, at any
time when Tenant is in material default under the terms of the Lease. In the
event of any material default under the Lease, any sums previously paid by
Landlord as part of the Allowance shall become immediately due and payable to
Landlord by Tenant.

     2.12  In no event shall Tenant be entitled to any payment, credit,
refund or other sum by or from Landlord on account of any costs savings
realized by Landlord in connection with the construction of the Tenant
Improvements.

                                      -5-
<PAGE>

                                     EXHIBIT "D-2A"

                     SECTION I: CONTRACTOR RULES AND REGULATIONS

1.    Contractor, subcontractors, and materialsmen will check in and out with
      Building Security.

2.    Contractor, subcontractors, and materialsmen will be appropriately
      dressed to work in an office environment: shirts with sleeves (T-shirts
      with company name are acceptable), pants (no shorts), work shoes with
      socks, and whatever other clothing as may be appropriate. No torn or
      worn-out clothing is permitted. Contractor personnel will display a
      courteous demeanor towards tenants, customers, visitors and general
      public. There is no smoking permitted in occupied offices. In addition,
      construction personnel are not to remain in the building after work
      hours.

3.    Contractor, subcontractors, and materialsmen are responsible for
      cleaning the Job Site after meals are eaten. Alcoholic beverages and
      drugs are not to be brought into, or consumed in the building.
      Personnel appearing to be under the influence of either alcoholic
      beverages or drugs will not be allowed into the building. TENANT SHALL
      INCLUDE THE FOREGOING THREE SENTENCES IN ITS CONTRACT WITH TENANT'S
      CONTRACTOR AND SAID CONTRACT SHALL PROVIDE THAT THE CONTRACT MAY BE
      TERMINATED BY TENANT IF TENANT'S CONTRACTOR DOES NOT COMPLY WITH ANY OF
      THE THREE SENTENCES.

4.    Parking for all personnel must be arranged prior to commencement of
      work, and will be provided in designated areas only. Vehicles in
      unapproved areas will be subject to citation and towing without notice.
      Any costs assessed by the parking operator of the garage are the sole
      responsibility of the Contractor.

5.    Contractor, subcontractors, and materialsmen personnel are to access
      the building by freight elevator only.

6.    Contractor, subcontractors and materialsmen personnel are to use the
      restroom on the first (1st) floor only. The key may be checked out at
      the security desk.

7.    Delivery of materials and use of loading dock, freight and passenger
      elevators must be scheduled with the Landlord's Agent prior to receipt
      of materials.

<PAGE>

      Delivery Dock Hours:      Monday-Friday  7:00 A.M. to 5:00 P.M.
      Freight Elevator Hours:   Monday-Friday  6:00 A.M. to 6:00 P.M.

      Note:  Other hours of access are available with prior arrangement.

8.    Building access hours:

             Monday-Friday:             6:00 AM to 10:00 PM
             Saturday:                  8:00 AM to 6:00 PM
             Sunday:                    10:00 AM to 6:00 PM

             Note:  Other hours of access are available with prior arrangement.

9.    Contractor, subcontractors and materialsmen are responsible for
      maintaining the condition of docks, elevators and corridors used.
      Contractor is responsible to protect floor and walls in corridors
      leading from the freight elevator to the entrance of the construction
      sight, as well as freight door jams.

10.   All materials are to be stored at the Job Site or in designated storage
      areas. No materials are to be stored in corridors or in public areas.
      The Landlord's Agent may provide minimum secured storage for materials
      with prior arrangement.

11.   Contractor, subcontractors and materialsmen must arrange access to
      areas other than Job Site at a minimum of 48 hours in advance.

12.   All work areas are to be visually and materially protected from the
      tenants and general public. Radios or other excessive noise are not
      permitted. All Contractors will be held responsible for compliance with
      O.S.H.A. Rules and Regulations.

13.   Toxic materials or odor-causing liquids are not to be used without
      prior scheduling with the Landlord's Agent, and prior notice to the
      tenants in suites adjacent to the Job Site.

14.   All non-Job Site areas of the building are to be kept clean; dust,
      debris and materials are to be cleaned immediately. There is to be no
      tracking of material residue through corridors or public areas.

15.   The Contractor and subcontractors are to ensure the Job Site is left
      broom clean at the completion of each scheduled work day. No trash or
      excess materials are

<PAGE>

      permitted to remain on, in, or at the Job Site. Materials are to be
      disposed of in bins or by truck promptly, not staged or stored at the
      Job Site in any public or adjacent areas, NOR DISPOSED OF IN THE
      BUILDING'S TRASH RECEPTACLES.

16.   Tool clean-up is permitted in janitorial/utility closets only; no
      clean-up is permitted in rest rooms.

17.   Contractor is to furnish adequate protection against personal injury to
      employees and public while work is in progress. In addition, all
      equipment, furniture and supplies shall be protected from damage.

18.   The work area may be occupied during construction, which may require
      the Contractor to move and relocate furniture, files, machinery and
      equipment during construction. Upon the completion of the work, the
      contractor is to return all items relocated during the work to their
      original location.

19.   All salvageable items removed during the course of the work that are to
      be reused in the job, whenever possible, are to be stored and maintained
      by the Contractor. All salvageable materials and items of value, as
      determined by Landlord's Agent, that are removed from the site, that are
      not to be reused in the work, shall remain the property of the Landlord's
      Agent, and shall be stored or disposed of as directed by the Landlord's
      Agent.

20.   All work includes replacing, patching and finishing all adjacent
      surfaces or features displaced or disturbed in the performance of the
      work such as, but not limited to: acoustical tile, topset base, cove
      base, floor coverings, paint, etc. Upon completion of the work, there
      shall be no discrepancy between the new work and the existing work.

21.   The Contractor shall not disable, interrupt or test any building
      utilities or systems without prior arrangement with the Agent, nor
      without the presence of Building Engineering personnel.

22.   The Contractor shall be responsible for any stoppage, interruptions or
      failures to building services, utilities or incidental damages to the
      building during the course of the work being performed as a result of
      his performance of the work.

<PAGE>

23.   All Contractors are responsible for supplying the following tools or
      materials to the Job Site:

                  a.   Ladders
                  b.   Industrial vacuum cleaner
                  c.   Protection for corridor floor coverings, walls and
                       ceilings from the Job Site to the elevators
                  d.   Protection for the elevators and the Job Site

24.   All anchoring of studs, drilling or coring of holes in concrete,
      applying carpet tack, and applying noxious materials (stains,
      fire-sealers, etc.) should be done after hours.

25.   The Landlord's Agent is not responsible for providing any tools,
      equipment, materials or labor for the work.

26.   The Contractor is responsible for the compliance to these rules and
      regulations by all his own personnel and those of his subcontractors,
      materialsmen and any other parties who may be employed for the
      performance and completion of the work.

<PAGE>

                                  EXHIBIT "D-2A"

         SECTION II:  LANDLORD'S REQUIREMENTS FOR TENANT IMPROVEMENTS OR
                      ALTERATIONS TO LEASED SPACE BY TENANT OR CONTRACTOR(S)
                      HIRED BY TENANT

The Tenant has certain requirements to provide information to the Landlord's
Agent regarding any alteration to be performed in the leased premises by
Tenant. Said information is to be submitted for approval by Landlord's Agent,
which approval shall not be unreasonably withheld. Below is a listing of
those requirements:

         1.   Two sets of plans (a.k.a. working drawings) of the work to be
              performed, including details of connections to any building
              system (i.e., electrical, life-safety, plumbing, HVAC, etc.).
              One set will be retained by Landlord's Agent. One set will be
              returned to Tenant, signed by Landlord's Agent, as the approval
              set of record.

         2.   List of all Contractors, sub-contractors and material suppliers.

         3.   A copy of the Contractor's and sub-contractors' current
              construction licenses including expiration date and type.

         4.   Certificates of Insurance from the Contractor, naming Master
              Landlord, Landlord, Landlord's Agent and Tenant as Additional
              Insureds, and an adequate amount of liability coverage,
              specifically:

              a.   General & Public Liability, no less than $1,000,000.

              b.   Workers' Compensation not less than statutory requirements.

              c.   Contractor's Business Liability (Umbrella) coverage of no
                   less than $1,000,000.

Upon submittal to Landlord's Agent of the above items, Landlord's Agent shall
review the plans, list of project participants and other documentation, and
make recommendations, if any, for modifications and compliance with building
standards, including materials, as well as proper connections to the building
systems.

<PAGE>

After obtaining approval from the Landlord's Agent, and prior to the
commencement of work, the Tenant shall provide:

         1.   Hold Harmless Agreements signed by the Tenant and the Tenant's
              Contractor for the purpose of indemnifying the Master Landlord,
              Landlord, and Landlord's Agent from any liabilities, including
              but not limited to, liens filed against the property by any and
              all General Contractors, sub-contractors and sub-sub-Contractors,
              material suppliers and laborers.

         2.   A copy of the fully executed Contract for Work between Tenant
              and Contractor.

         3.   A copy of all required Municipal Building Permits.

The Tenant shall be responsible for instructing the Contractor and
sub-contractors to follow the building's Rules and Regulations provided
herewith. The Tenant will then advise the Landlord's Agent of the
commencement date of work, upon which notification the Landlord's Agent shall
complete a Notice of Non-Responsibility for filing with the County Recorder's
Office and posting on the job site. The Tenant shall provide Landlord with
an anticipated payment schedule prior to the commencement of work.

During the performance of the work, if there is a change or addition of
contractors, sub-contractors or material suppliers, the Tenant shall
immediately notify the Landlord's Agent, in writing, of the change or
addition. All the same qualifications shall apply to the changed or added
parties.

In the event a Preliminary Lien Notice or Lien Notice is received by the
Tenant, Tenant shall immediately provide a copy of same to Landlord's Agent.

Landlord's Agent may, at its option, inspect the work in progress to insure
that the building's minimum standards of quality of craftsmanship are
maintained.

The Tenant is responsible for coordinating with the office of the building,
any access requirements for the contractor for the purpose of stocking the
job, work to be performed in adjacent space, or connecting to or testing of
base building systems which may disturb the normal operation of the building.

After completion of the alteration, Tenant shall obtain the completed Permit
Job Card and a Temporary Certificate of

<PAGE>

Occupancy clearly indicating the City's final Inspection by signature and
date. Tenant shall submit a copy of same to Landlord' Agent as evidence of
the completed alteration.

Tenant shall, at the conclusion of all work, provide original Unconditional
Lien Release documents to the Landlord's Agent demonstrating the payment of
all outstanding invoices for the work.

Upon completion of the work, Contractor is to provide Landlord's Agent with a
set of "as-built" plans, cut sheets and specifications on all installed
equipment, all warranties, and the stamped plancheck approved drawings with
the permit signature card. These plans would include, but not be limited to:
architectural, structural, electrical, plumbing and mechanical drawings as
applicable.

If any reimbursement from Landlord's Agent is due Tenant, copies of all paid
invoices to all Contractors, sub-contractors and material suppliers must
accompany above said original Unconditional Lien Releases from each.
Landlord's Agent shall then reimburse Tenant's costs up to the agreed upon
Tenant Improvement Allowance, less any costs Landlord or Landlord's Agent may
have incurred in association with the performance of the work.

These requirements neither supersede or subjugate any of the terms and
conditions of the Lease for the leased space.<PAGE>

                                                                    EXHIBIT 10.3

                                  OFFICE LEASE

                                     BETWEEN

                      20 ADELAIDE ST. EAST, A CO-OWNERSHIP

                                     - AND -

                    PARAGON MANAGEMENT SYSTEMS (CANADA) INC.

--------------------------------------------------------------------------------
                                      LEASE

                ADELAIDE STREET EAST, SUITE 800, TORONTO, ONTARIO

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

<PAGE>

                                  OFFICE LEASE

                                TABLE OF CONTENTS

                                                                            PAGE
                                                                            ----

SPECIAL PROVISIONS.............................................................1

ARTICLE 1    Leased Premises, Term and Acceptance of Leased Premises...........5
Section 1.1       Leased Premises..............................................5
Section 1.2       Use of Additional Areas......................................5
Section 1.3       Storage Area - INTENTIONALLY DELETED.........................6
Section 1.4       Grant and Term...............................................6
Section 1.5       Construction of the Leased Premises - INTENTIONALLY DELETED..6
ARTICLE 2    Rent..............................................................6
Section 2.1       Covenant to Pay..............................................6
Section 2.2       Basic Rent...................................................6
Section 2.3       Advance Rent.................................................7
Section 2.4       Security Deposit - INTENTIONALLY DELETED.....................7
Section 2.5       Rent Past Due................................................7
ARTICLE 3    Taxes and Operating Costs.........................................7
Section 3.1       Taxes Payable by the Landlord................................7
Section 3.2       Taxes Payable by the Tenant..................................7
Section 3.3       Business Taxes and Other Taxes of the Tenant.................8
Section 3.4       Tenant's Responsibility......................................8
Section 3.5       Tenant's Proportionate Share of Operating Costs..............9
Section 3.6       Payment of Taxes and Operating Costs.........................9
ARTICLE 4    Building - Control and Services..................................10
Section 4.1       Control of the Building by the Landlord.....................10
Section 4.2       Landlord's Services.........................................11
ARTICLE 5    Utilities........................................................13
Section 5.1       Charges for Utilities.......................................13

                                       i

<PAGE>

ARTICLE 6    Use of the Leased Premises.......................................14
Section 6.1       Use of the Leased Premises..................................14
Section 6.2       Conduct of Business.........................................14
Section 6.3       Observance of Law...........................................15
ARTICLE 7    Insurance and Indemnity..........................................16
Section 7.1       Tenant's Insurance..........................................16
Section 7.2       Increase in Insurance Premiums..............................18
Section 7.3       Cancellation of Insurance...................................18
Section 7.4       Loss or Damage..............................................19
Section 7.5       Landlord's Insurance........................................19
Section 7.6       Indemnification of the Landlord.............................19
ARTICLE 8    Maintenance, Repairs and Alterations.............................20
Section 8.1       Maintenance and Repairs by the Tenant.......................20
Section 8.2       Landlord's Approval of the Tenant's Repairs.................20
Section 8.3       Maintenance by the Landlord.................................21
Section 8.4       Repair on Notice............................................22
Section 8.5       Surrender of the Leased Premises............................22
Section 8.6       Repair Where the Tenant is at Fault.........................22
Section 8.7       Tenant Not To Overload Facilities...........................23
Section 8.8       Tenant Not To Overload Floors...............................23
Section 8.9       Removal and Restoration by the Tenant.......................23
Section 8.10      Notice by the Tenant........................................24
Section 8.11      Tenant to Discharge all Liens...............................24
Section 8.12      Signs and Advertising.......................................25
ARTICLE 9    Damage and Destruction...........................................25
Section 9.1       Destruction of the Leased Premises..........................25
Section 9.2       Destruction of the Building.................................26
Section 9.3       Expropriation...............................................26
Section 9.4       Architect's Certificate.....................................27
ARTICLE 10   Transfer and Sale................................................27
Section 10.1      Assignment and Subletting...................................27
Section 10.2      No Advertising of the Leased Premises.......................28
Section 10.3      Corporate Ownership.........................................28
Section 10.4      Assignment by the Landlord..................................29

                                       ii

<PAGE>

ARTICLE 11   Access and Alterations...........................................29
Section 11.1      Right of Entry..............................................29
ARTICLE 12   Status Statement, Attornment and Subordination...................30
Section 12.1      Status Statement............................................30
Section 12.2      Subordination and Attornment................................30
Section 12.3      Attorney....................................................31
Section 12.4      Financial Information.......................................31
ARTICLE 13   Default..........................................................31
Section 13.1      Right to Re-enter...........................................31
Section 13.2      Right to Relet..............................................32
Section 13.3      Expenses....................................................33
Section 13.4      Waiver of Exemption from Distress...........................33
Section 13.5      Landlord May Cure the Tenant's Default or Perform the
                    Tenant's Covenants........................................33
Section 13.6      Additional Rent.............................................34
ARTICLE 14   Miscellaneous....................................................34
Section 14.1      Rules and Regulations.......................................34
Section 14.2      Intent and Interpretation...................................35
Section 14.3      Overholding - No Tacit Renewal..............................36
Section 14.4      Successors..................................................36
Section 14.5      Tenant Partnership..........................................37
Section 14.6      Waiver......................................................37
Section 14.7      Accord and Satisfaction.....................................37
Section 14.8      No Partnership or Agency....................................37
Section 14.9      Force Majeure...............................................37
Section 14.10     Notices.....................................................38
Section 14.11     No Option...................................................38
Section 14.12     Registration................................................38
Section 14.13     Directory Board.............................................39
Section 14.14     Accrual of Basic Rent and Additional Rent...................39
Section 14.15     Compliance with the Planning Act............................39
Section 14.16     Survival of Covenants.......................................39
Section 14.17     Quiet Enjoyment.............................................39

SCHEDULES

SCHEDULE "A"      LEGAL DESCRIPTION OF THE LANDS
SCHEDULE "B"      FLOOR PLAN

                                      iii

<PAGE>

SCHEDULE "C"      CONSTRUCTION OF THE BUILDING AND THE LEASED
                    PREMISES
SCHEDULE "D"      INTENTIONALLY DELETED
SCHEDULE "E"      RULES AND REGULATIONS
SCHEDULE "F"      DEFINITIONS
SCHEDULE "G"      INTENTIONALLY DELETED
SCHEDULE "H"      INTENTIONALY DELETED

                                       iv

<PAGE>

     THIS LEASE is dated the 30th day of August, 1999.

B E T W E E N:

                      20 ADELAIDE ST. EAST, A CO-OWNERSHIP
                                (the "Landlord")

                                                              OF THE FIRST PART;

                                     - AND -

                    PARAGON MANAGEMENT SYSTEMS (CANADA) INC.
                                 (THE "TENANT")

                                                             OF THE SECOND PART.

                               SPECIAL PROVISIONS

     The following are certain special provisions, which are part of, and are
referred to in subsequent provisions of this Lease. Any conflict or
inconsistency between these special provisions and the provisions contained
elsewhere in this Lease will be resolved in favour of such other provisions:

(a)        Leased                    Containing a Rentable Area of approximately
           Premises:                 11,700 square feet located on the 8th floor
                                     of the Building as shown outlined in yellow
                                     on the plan(s) attached as Schedule "B" and
                                     designated as Suite No. 800 (Section 1.1).

(b)        Commencement              The period of Three (3) years commencing on
           of Date and Term:         the 1st day November, 1999 (the
                                     "Commencement Date") and expiring on the
                                     31st day of October, 2002;

(c)        Net Rent:                 It is understood and agreed by both the
                                     Landlord and the Tenant that the Net
                                     Rental Rate shall be charged per
                                     Rentable Square Foot of the Premises,
                                     per annum (the "Net Rent") plus GST for
                                     the Term of the Lease, payable to the
                                     Landlord in advance on the first day of
                                     each month in twelve (12) equal
                                     consecutive monthly installments. The
                                     Net Rent shall be Twelve Dollars
                                     ($12.00) per square foot per year.
                                     (Section 2.2).

(d)        Additional Rent:          The Tenant and the Landlord agree that rent
                                     payable herein shall be net in all
                                     respects and carefree to the Landlord
                                     and that the Tenant shall pay its
                                     proportionate

                                        1

<PAGE>

                                     share of Additional Rent as outlined
                                     below. The Additional Rent shall be paid
                                     to the Landlord in advance on the first
                                     day of each month in Twelve (12)
                                     consecutive monthly installments.  The
                                     Tenant shall be responsible for its
                                     proportionate share of realty taxes,
                                     utilities and operating costs, which
                                     together are estimated to be Seventeen
                                     Dollars and Thirty-Nine Cents ($17.39)
                                     per square foot of rentable area.
                                     Additional rent shall be payable in
                                     advance in monthly installments on the
                                     first day of each month based on the
                                     Landlord's estimate from time to time.
                                     The Landlord will provide to the Tenant
                                     on an annual basis a detailed breakdown
                                     of the Additional Rent costs.

(e)        Advance Rent:             The Tenant acknowledges that it will
                                     provide the Landlord with a deposit
                                     equal to four (4) months Basic Rent,
                                     Additional Rent in the amount of One
                                     Hundred and Fourteen Thousand Six
                                     Hundred and Twenty-One dollars
                                     ($114,621.00), said deposit to be
                                     payable in two (2) installments, the
                                     first ($57,310.50) being due upon
                                     unconditional acceptance of the Offer to
                                     Lease and the second (57,310.50) due on
                                     the 15th day of September, 1999, to be
                                     applied to the first renewal payments
                                     due hereunder.

(f)        Removal of Leaseholds:    At the end of the Term, the Tenant shall
                                     not be required to remove leasehold
                                     improvements which have been approved by
                                     the Landlord; however, it may remove its
                                     equipment and trade fixtures, provided
                                     it shall repair any damage caused by
                                     said removal.

(g)        Signs:                    The Tenant, at the Landlord's cost, shall
                                     have the right to erect building
                                     standard signage on the outside of the
                                     Premises and on the Building Directory
                                     in the main lobby and in the elevator
                                     lobby located on the 8th Floor. All
                                     signage must be in a building standard
                                     design, size, location, and in all other
                                     respects satisfactory to the Landlord
                                     and all municipal and governmental
                                     authorities.

(h)        Access:                   Apart from "Normal Building Business
                                     Hours", the Tenant shall have access to
                                     the Premises twenty-four (24) hours a
                                     day each and every day of the year
                                     throughout the Term, except for
                                     unforeseen Building emergencies. The
                                     Tenant shall have the right to have

                                       2

<PAGE>

                                     heating, ventilation, air conditioning,
                                     hydro and elevatoring as it may require
                                     upon reasonable request.

(i)        Address of                20 Adelaide Street East
           Landlord:                 Suite 1103
                                     Toronto, Ontario
                                     M5C 2T6
                                     (Section 14.10);

(j)        Address of                20 Adelaide Street East
           Tenant:                   Suite 800
                                     Toronto, Ontario
                                     M5C 2T6
                                     (Section 14.10);

(k)        Leasehold Improvement     The Landlord will pay to the Tenant, as a
           Allowance:                contribution towards the cost of the
                                     Tenant's Work and the disposition of the
                                     Tenant's existing Lease, the sum of
                                     $5.00 per square foot of Rentable Area
                                     plus applicable Goods and Services Tax.
                                     Such contribution shall be payable to
                                     the Tenant on the Commencement Date.
                                     Tenant's Work is defined strictly as
                                     leasehold improvements to the Leased
                                     Premises. All Tenant's Work and all
                                     related plans and specifications, as
                                     well as all trades to be approved by the
                                     Landlord in advance, such approval not
                                     to be unreasonably withheld.

(1)        As Is:                    The Tenant agrees to accept the Premises
                                     on an "as is" basis and in its present
                                     condition. Any and all costs of any
                                     other alteration and construction which
                                     may be required to make the Premises
                                     suitable for the Tenant's occupation and
                                     use shall be paid for entirely by the
                                     Tenant but shall, however, be subject to
                                     the Landlord's prior written approval of
                                     the work and supervision of same at
                                     Tenant's cost as required by the Lease.

(m)        Option to Renew:          Provided the Tenant is not in breach of
                                     the Lease, the Tenant shall have one (1)
                                     option to renew the Lease with respect
                                     to the Leased Premises and any
                                     additional space leased for additional
                                     terms of three (3) years on the same
                                     terms and conditions, save only for the
                                     Basic Rent and Additional Rent, Tenant
                                     Allowances, any other allowances of any
                                     nature, Rent-Free Period, and any
                                     further option(s) to renew. The Basic
                                     Rent during the renew period will be the
                                     fair market rent, all economic

                                       3

<PAGE>

                                     factors considered for comparable
                                     premises in comparable buildings agreed
                                     between the parties, and failing such
                                     agreement, as determined by arbitration
                                     pursuant to the Arbitrations Act,
                                     Ontario. To exercise an Option to Renew,
                                     the Tenant shall give written notice to
                                     the Landlord no later than six (6)
                                     months prior to the date of expiry of
                                     the current Term, failing which this
                                     option is null and void and of no
                                     further effect.  This Option to Renew is
                                     personal to the Tenant, and cannot be
                                     exercised by any assignee or sub-tenant
                                     of the Tenant.

(n)        Assignment/Sublet:        The Tenant shall not assign this Lease or
                                     sublet or part with possession of all or
                                     part of the Leased Premises or mortgage
                                     or encumber the Lease without the prior
                                     written consent of the Landlord, which
                                     consent shall not be unreasonably
                                     withheld or delayed.

(o)        H.V.A.C. System:          The Landlord warrants that the H.V.A.C.
                                     system in the Building and the Leased
                                     Premises is in good working order and
                                     not in need imminent rep or upgrade.

(o)(i)                               The Landlord represents to the Tenant that
                                     it has formally investigated the
                                     Building systems and to the best of its
                                     knowledge based upon representations by
                                     Building service providers, that all the
                                     Building systems (including, but not
                                     limited to, elevators, power,
                                     communication, telephone) have been
                                     investigated and are Y2K compatible and
                                     that third party service providers to
                                     the Building have indicated that they
                                     are Y2K compatible.

(p)        Additional H.V.A.C.
            Costs:                   The Tenant shall not be responsible for
                                     any additional H.V.A.C. costs from 6:30
                                     p.m. until 8:30 p.m. from Monday to
                                     Friday. An after hour charge for
                                     H.V.A.C. of $15.00 per hour of use will
                                     apply to those hours outside of 4:30
                                     a.m. and 8:30 p.m.

(q)        Early Access:             The Tenant shall have access to the
                                     Leased Premises provided the Lease is
                                     executed by all parties for the purpose
                                     of the installation of telephone and
                                     communication systems, computer
                                     equipment, leasehold improvements,
                                     furniture and commencement of business
                                     as of September 1, 1999. All terms and
                                     conditions of the Lease will apply to
                                     the term of occupation prior to the

                                       4

<PAGE>

                                     Commencement Date of the Lease except that
                                     no basic rent, additional rent or
                                     utilities will be payable.

(r)        Basic Rent and            The Tenant shall have a Basic Rent and
           Additional Rent Free      Additional Rent Free Period for One (1)
           Period:                   month from the commencement Date. During
                                     this period, the Tenant shall not be
                                     responsible to pay the Landlord its
                                     proportionate share of realty taxes,
                                     operating expenses, utilities and Basic
                                     Rent.

(s)        Parking:                  The Landlord shall provide to the Tenant
                                     four (4) reserved parking stalls in the
                                     Building. Rental for such stalls shall
                                     be $220.00 per stall per month payable
                                     in advance on the first day of each and
                                     every month during the term of the Lease
                                     and any renewal thereof and shall be
                                     subject to change from time to time.

(t)        Right of Fast Offer to    Provided the Tenant has not been in breach
           Lease Adjoining Space:    of its covenants and obligations under the
                                     Lease, the Landlord hereby grants to the
                                     Tenant the right of first offer to
                                     lease, during the Term or any renewal
                                     thereof, any adjoining space that may
                                     become available to be leased on the
                                     terms and conditions of fair market
                                     rent, both parties acting reasonably.
                                     The Landlord agrees to notify the Tenant
                                     of any available space as it becomes
                                     available. If the Tenant does not
                                     exercise this right of first offer to
                                     lease the said premises, the said
                                     premises may thereafter be freely leased
                                     by the Landlord.

                                    ARTICLE 1

     Leased Premises, Term and Acceptance of Leased Premises

Section 1.1 Leased Premises

     In consideration of the rents, covenants and agreements herein contained on
the part of the Tenant to be paid, observed and performed, the Landlord leases
to the Tenant, and the Tenant leases from the Landlord, the Leased Premises. The
Leased Premises shall be measured and calculated by the Landlord in accordance
with Schedule "D".

Section 1.2 Use of Additional Areas

     The use and occupation by the Tenant of the Leased Premises includes the
non-exclusive right of the Tenant, the Tenant's employees, agents, invitees,
suppliers (subject to

                                       5

<PAGE>

Section 14.1 hereof), and Persons having business with the Tenant, in common
with the Landlord, its other tenants, subtenants and all others entitled or
permitted to the use of the following:

     (a) the entrance, foyer, lobby elevators and escalators of the Building;

     (b) the corridors on the floor of the Building on which the Leased Premises
are situate, together with the public entrance doors, halls, stairways,
passages, elevators, escalators and lavatories on the floor of the Building on
which the Leased Premises are situate; and

     (c) the Common Areas and Facilities.

Section 1.3  Storage Area - INTENTIONALLY DELETED.

Section 1.4  Grant and Term

     The Tenant will have and hold the Leased Premises for and during the Term
(being the period of time referred to in Paragraph (c) of the Special
Provisions) subject to the payment of Basic Rent and Additional Rent and the
observance and performance of the terms, covenants and conditions contained in
this Lease.

Section 1.5 Construction of the Leased Premises - INTENTIONALLY DELETED

                                    ARTICLE 2

                                      Rent

Section 2.1 Covenant to Pay

     The Tenant shall pay Basic Rent and Additional Rent.

Section 2.2 Basic Rent

     The Tenant will pay from and after the Commencement Date to the Landlord at
the office of the Landlord, or at such other place designated by the Landlord or
to such other Person as the Landlord designates from time to time, in lawful
money of Canada, without any prior demand therefor as Basic Rent, the annual sum
specified in Paragraph (d) of the Special Provisions, payable in equal
consecutive monthly installments each in advance on the first day of each
calendar month of each Rental Year. When the Full Floor Rentable Area of the
Leased Premises is calculated, by the Landlord, the Basic Rent will, if
necessary, be adjusted accordingly.

                                       6

<PAGE>

Section 2.3 Advance Rent

     The Landlord acknowledges receipt of the sum specified in Paragraph (e) of
the Special Provisions as Advance Rent, to be held without interest by the
Landlord and to be applied on account of the Basic Rent in accordance with
Paragraph (e) of the Special Provisions.

Section 2.4 Security Deposit - INTENTIONALLY DELETED

Section 2.5 Rent Past Due

     If the Tenant fails to pay, when the same is due and payable, any Basic
Rent, Additional Rent or other amount payable by the Tenant under this Lease,
such unpaid amounts bear interest from the due date thereof to the date of
payment at a rate per annum which is five (5) percentage points in excess of the
minimum lending rate to prime commercial borrowers current at such time charged
by any Canadian chartered bank designated by the Landlord from time to time.

                                    ARTICLE 3

                            Taxes and Operating Costs

Section 3.1 Taxes Payable by the Landlord

     The Landlord will, subject to Sections 3.2 and 3.3, pay directly to the
appropriate taxing authority all Taxes in respect of the Building and the Lands,
or any part thereof. However, the Landlord may defer payment of any such Taxes,
to the fullest extent permitted by law, so long as it diligently prosecutes any
contest or appeal of any such Taxes.

Section 3.2 Taxes Payable by the Tenant

     (a) If there are separate tax bills and separate assessment notices in
respect of Taxes for the Leased Premises and the non-leasable areas of the
Building and the Lands, subject to subparagraph (b) below, the Tenant will (i)
pay as Additional Rent to the Landlord or to the taxing authorities if the
Landlord so directs, and discharge during the Term within the times provided for
by the taxing authorities, all Taxes that are levied, rated, charged or assessed
from time to time, respectively, against the Leased Premises or any part
thereof, on the basis of such separate tax bill and separate assessment notice
rendered by any lawful taxing authority; and (ii) pay as Additional Rent in
accordance with Section 3.6, its Proportionate Share of all Taxes in respect of
the Building and the Lands, excluding all portions thereof designated or
intended by the Landlord to be leased to tenants.

     (b) If there are not separate tax bills and separate assessment notices for
the Leased Premises and the non-leasable areas of the Building and the Lands or,
in any event, if the Landlord so elects, the Tenant will pay monthly in advance
or otherwise as the Landlord directs, in accordance with Section 3.6, its
Proportionate Share of all Taxes levied, rated, charged or

                                       7

<PAGE>

assessed by any lawful authority against, or in relation to, the Building and
the Lands, including the Common Areas and Facilities.

     (c) If the Landlord, acting equitably, determines that as a result of the
construction or installation of any improvements in the Leased Premises, the use
of the Leased Premises or the particular location of the Leased Premises within
the Building, the Tenant's Proportionate Share of Taxes payable in accordance
with subparagraph (b) above does not accurately reflect the proper share of the
Taxes which should in the Landlord's opinion be payable by the Tenant, the
Landlord may increase or decrease the Tenant's Proportionate Share of Taxes and
the Tenant will pay such adjusted amount rather than the Tenant's Proportionate
Share as set out in subparagraph (b) above.

     (d) In addition to the foregoing, but without duplication, the Tenant will
reimburse the Landlord for each Rental Year and at the times and in the manner
specified by the Landlord, the full amount of any Taxes in the nature of a
business transfer tax, value-added tax, sales tax or any other taxes levied,
rated, charged or assessed in respect of the Rent payable by the Tenant under
this Lease or in respect of the rental of space by the Tenant under this Lease.
It is agreed and understood that the Tenant shall reimburse the Landlord for
such Taxes at the full tax rate applicable from time to time in respect of the
Rent or the rental of space, without reference to any tax credits or exemptions
available to the Landlord.

Section 3.3 Business Taxes and Other Taxes of the Tenant

     The Tenant will pay as Additional Rent to the lawful taxing authorities, or
to the Landlord, as the Landlord directs, and shall discharge when the same
become due and payable (i) all taxes, rates, duties, assessments and other
charges that are levied, rated, charged or assessed against or in respect of all
improvements, equipment and facilities of the Tenant in the Leased Premises or
the Building or the Lands or any part thereof, or the Landlord on account of its
interest in the Building; and (ii) every tax and license fee which is levied,
rated, charged or assessed against or in respect of any and every business
carried on in the Leased Premises or in respect of the use or occupancy thereof
or any other part of the Building and the Lands by the Tenant and every
subtenant or licensee of the Tenant, or against the Landlord on account of its
interest in the Building; all of the foregoing being collectively referred to as
"Business Taxes" and whether in any case, any such taxes, rates, duties,
assessments or license fees are rated, charged or assessed by any federal,
provincial, municipal, school or other body during the Term. If there are not
separate tax bills provided for Business Taxes, the Tenant will pay in
accordance with Section 3.6 the Tenant's Proportionate Share of the total
Business Taxes for the Building.

Section 3.4 Tenant's Responsibility

     The Tenant will (a) upon request of the Landlord: (i) promptly deliver to
the Landlord for inspection, receipts evidencing the payment of all Taxes and
Business Taxes payable by the Tenant pursuant to Sections 3.2 and 3.3,
respectively; (ii) promptly deliver to the Landlord copies of all bills and any
notices of assessment in respect of any Taxes or Business Taxes received by the
Tenant which relate to the Leased Premises; and (iii) furnish such other
information in connection with any such Taxes or Business Taxes or other
assessments payable

                                       8

<PAGE>

by the Tenant in respect of the Leased Premises as the Landlord reasonably
determines from time to time; and (b) deliver to the Landlord at least ten (10)
days prior to the last day permitted for filing an appeal, a notice of any
appeal or contestation which the Tenant intends to institute with respect to
Taxes or Business Taxes and consult with the Landlord in advance and obtain the
prior written approval of the Landlord to any such appeal or contestation. If
the Tenant obtains such approval, the Tenant will deliver to the Landlord such
security for the payment of Taxes and Business Taxes as the Landlord deems
advisable and the Tenant will diligently prosecute any such appeal or
contestation to a speedy resolution and will keep the Landlord informed of its
progress in that regard, from time to time.

     The Tenant will indemnify and hold harmless the Landlord from and against
payment for all loss, costs, charges and expenses occasioned by or arising from
all Taxes and Business Taxes and any taxes which may in future be levied in lieu
of such Taxes or Business Taxes or which may be assessed against any rentals
payable pursuant to this Lease in lieu of such Taxes or Business Taxes, whether
against tile Landlord or the Tenant, including, without limitation, any increase
whensoever occurring in Taxes or Business Taxes arising directly or indirectly
out of any appeal or contestation by the Tenant of the Taxes or Business Taxes.
The Tenant will deliver to the Landlord such security for any increase in Taxes
and Business Taxes as the Landlord deems advisable.

Section 3.5 Tenant's Proportionate Share of Operating Costs

     The Tenant will pay, in accordance with Section 3.6, the Tenant's
Proportionate Share of Operating Costs.

Section 3.6 Payment of Taxes and Operating Costs

     (a) The amounts payable by the Tenant pursuant to Sections 3.2 and 3.5 (and
Section 3.3. if applicable) may be estimated by the Landlord for such period as
the Landlord determines from time to time, and the Tenant agrees to pay to the
Landlord the Tenant's Proportionate Share as so estimated, of such amounts in
monthly installments in advance during such period as Additional Rent.
Notwithstanding the foregoing, the Landlord's estimates may be revised from time
to time and as soon as bills for all or any portion of the amounts so estimated
are received, the Landlord may bill tile Tenant for the Tenant's Proportionate
Share thereof and the Tenant will pay the Landlord the amounts billed (less all
amounts previously paid by the Tenant on the basis of the Landlord's estimate)
as Additional Rent within five (5) days after demand.

     (b) Within a reasonable period of time after the end of the period for
which the estimated payments have been made, the Landlord will determine and
advise the Tenant of (i) the amounts and costs referred to in Section 3.2 and
Section 3.3 (if applicable) for such period, together with the calculation the
Tenant's Proportionate Share of such amounts and costs pursuant to Section 3.2
and Section 3.3 (if applicable); and (ii) the Operating Costs referred to in
Section 3.5 for such period, together with a calculation of the Tenant's
Proportionate Share of such Operating Costs payable pursuant to Section 3.5; and
if necessary, an adjustment shall be made between the parties in the following
manner. If the Tenant has paid in excess of the

                                       9

<PAGE>

amounts due, the excess will be refunded by the Landlord within a reasonable
period of time after the Landlord's determination, or, at the option of the
Landlord, the excess will be credited to amounts payable pursuant to Sections
3.2, 3.5 (and 3.3. if applicable) in the immediately following Rental Year. If
the amount the Tenant has paid is less than the amounts due, the Tenant will pay
such additional amounts due within five (5) days after demand. If any Rental
Year during the Term is greater or less than any such period determined by the
Landlord, the Tenant's Proportionate Share pursuant to Sections 3.2 and 3.5 (and
Section 3.3, if applicable) will be subject to a per diem, pro rata adjustment
based upon a period of three hundred and sixty-five (365) days and will be made
on or before the last day of the Term. If the Term expires or this Lease is
terminated prior to a final determination of the Tenant's Proportionate Share of
the costs and expenses set out in Sections 3.2 and 3.5 (and Section 3.3, if
applicable), an amount payable for the last Rental Year of the Term will be
estimated by the Landlord, acting reasonably. As soon as the amount payable by
the Tenant for the last Rental Year of the Term has been determined, the amount
will be adjusted between the Landlord and the Tenant.

Section 3.7 The Tenant's proportionate share of all taxes, operating expenses
     and hydro are estimated at $17.39 per sq. ft. for the calendar year 1999.

                                    ARTICLE 4

                         Building - Control and Services

Section 4.1 Control of the Building by the Landlord

     (a) The Landlord will operate and maintain the Building in such manner as
the Landlord determines from time to time, and in a first-class and reputable
manner as would a prudent landlord of a similar office building having regard to
size, age and location.

     (b) The Building and the Lands are at all times subject to the exclusive
control, management and operation of the Landlord. The Landlord has the right,
in its control, management and operation of the Building and by the
establishment of Rules and Regulations and general policies with respect to the
operation of the Building or any part thereof, at all times throughout the Term,
to:

               (i)  obstruct or close off all or any part of the Building for
the purpose of maintenance, repair or construction;

               (ii) employ all personnel necessary for the operation and
management of the Building. The Tenant acknowledges that the Building may be
managed by any Person designated by the Landlord;

               (iii) construct improvements in or to the Building and make
alterations thereof, additions thereto, subtractions therefrom, rearrangements
thereof (including all entrances and exits thereto), build additional stories on
the Building and construct additional facilities adjoining or proximate to the
Building;

                                       10

<PAGE>

               (iv) relocate or rearrange the various facilities and
improvements comprising the Building or erected on the Lands from those existing
at the Commencement Date excluding the Leased Premises;

               (v)  do and perform such other acts in and to the Building as, in
the use of good business judgment, the Landlord determines to be advisable for
the more efficient and proper operation of the Building;

               (vi) control, supervise and regulate any parking facilities which
may be used in conjunction with the Building in such manner as the Landlord
determines from time to time, including, without limitation, imposing charges or
rates as may from time to time be determined by the Landlord for the use of any
such parking facilities.

     (c) Notwithstanding anything contained in this Lease, it is understood and
agreed that if as a result of the exercise by the Landlord of its rights set out
in tins Section 4.1, the facilities in or improvements to the Building are
diminished or altered in any manner whatsoever, the Landlord is not subject to
any liability; nor is the Tenant entitled to any compensation, diminution or
abatement of Basic Rent or Additional Rent; nor is any alteration or diminution
of the facilities or improvements in or to the Building (including, the Leased
Premises) deemed a breach of any covenant for quiet enjoyment contained in this
Lease, or implied by law.

Section 4.2 Landlord's Services

     (a) The Landlord will provide climate control to the Leased Premises during
Normal Business Hours to maintain a temperature adequate for occupancy, except
during the making of repairs, alterations or improvements to the climate control
apparatus and provided that the Landlord shall have no responsibility or
liability for failure to supply climate control service when stopped as
aforesaid or when prevented from so doing by strikes or causes beyond the
Landlord's reasonable control. The Tenant acknowledges that the Landlord has
installed a system for the purpose of climate control, which system is designed
to heat and cool during normal occupancy of the Leased Premises as general
offices on the basis of one (1) person to every one hundred (100) square feet of
space on an open floor basis and based on the window shading being fully closed
in those offices having exterior windows exposed to the sun, without having
regard to the Tenant's specific use thereof or the installation in the Leased
Premises by the Tenant or by anyone on behalf of the Tenant of any excessive
heat generating equipment. Any use of the Leased Premises not in accordance with
the design standards or any arrangement of partitions which interferes with the
normal operation of such system may require changes or alterations in the system
or the ducts. Any changes or alterations so occasioned, if such changes can be
accommodated by the Landlord's equipment, shall be made (i) by the Tenant (or,
at the Landlord's option, by the Landlord), (ii) in either case, at the Tenant's
expense and only with the Landlord's prior written consent, and (iii) in
accordance with drawings and specifications and by a contractor first approved
in writing by the Landlord. If installation of partitions, equipment or fixtures
by or on behalf of the Tenant (other than the partitions installed pursuant to
the Landlord's Work as set out in Schedule "C") necessitates the rebalancing of
the portion of the

                                       11

<PAGE>

climate control equipment installed in the Leased Premises, such work will be
performed by the Landlord at the Tenant's expense, together with an amount equal
to fifteen percent (15%) of the total expense thereof representing the
Landlord's overhead, payable by the Tenant within five (5) days after written
demand as Additional Rent. The Tenant acknowledges that one (1) year may be
required after the Tenant has fully occupied the Leased Premises in order to
adjust and balance the climate control systems.

     (b) Subject to the Rules and Regulations, the Landlord will furnish, except
when repairs to the elevator(s) are being made, elevator service during Normal
Business Hours, in common with others, provided that the Tenant and its
employees and all other Persons using the elevator service will do so at their
own risk. At least one (1) elevator will be operated at all times after Normal
Business Hours.

     There will 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 the elevators, nor shall there be,
consequent upon the foregoing, any abatement or reduction in the Rent.

     If the Tenant requests the provision of climate control services to the
Leased Premises after Normal Business Hours, the Landlord will provide such
services to the Tenant at the Tenant's expense at the rate of $15.00 per hour,
payable by the Tenant within five (5) days after written demand, i.e. those
hours outside of 4:30 a.m. to 8:30 p.m.

     (c) The Landlord will provide a card-coded security system to control
access to the Building after Normal Business Hours and on weekends and all
employees of the Tenant shall comply with all regulations and rules promulgated
by the Landlord for such system. Employees of the Tenant holding a security pass
issued by the Landlord will be provided access to the Building for the whole
year.

     (d) The Landlord will when reasonably necessary from time to time cause the
floors to be swept, the windows to be cleaned and the desks, tables and other
furniture of the Tenant to be dusted, all in keeping with a first-class office
building and in accordance with the Landlord's cleaning schedule attached as
Schedule "H". However, with the exception of the obligation to cause such work
to be done, the Landlord will not be responsible for any act or omission or
commission on the part of the Persons employed to perform such work and such
work shall be done at the Landlord's direction without interference by the
Tenant and its servants or employees.

     (e) The Landlord will make available water and electricity in adequate
quantities, provided that if the Tenant's equipment requires utilities in excess
of adequate quantities facilities to supply such excess quantities may be
provided by the Landlord at the sole expense of the Tenant, subject to the
following conditions and provided that:

               (i)  the Landlord's electrical engineer or other consultants
determines that such excess facilities are so required by the Tenant's
equipment;

                                       12

<PAGE>

               (ii) it is within the capabilities of the Landlord and the
existing structure of the Building to provide such excess utilities;

               (iii) the Landlord will have the right of refusal to supply such
excess utilities if the supplying of additional facilities or utilities shall in
any way affect the operation, the aesthetics or the structure of the Building,
or in any way reduce the efficiency of existing electricity, water or other
utilities supplied to the Building; and

               (iv) the supplying of such additional facilities will be subject
to compliance with all provisions of law including, without limitation, federal
and provincial legislative enactments, building by-laws and other governmental
or municipal regulations.

                                    ARTICLE 5

                                    Utilities

Section 5.1 Charges for Utilities

     (a) The Tenant will promptly pay to the Landlord, or as the Landlord
otherwise directs, in the manner hereinafter provided, as Additional Rent, the
aggregate, without duplication, of (i) all electricity, water, steam charges and
other utility charges applicable to the Leased Premises (the "Utilities") on the
basis of the Full Floor Rentable Area of the Leased Premises; (ii) the costs of
any other charges levied or assessed in lieu of, or in addition to, such
Utilities as determined by the Landlord; and (iii) all costs incurred by the
Landlord in determining or allocating the charge for Utilities, including
without limitation, professional engineering and consulting fees and an
administration fee of five percent (5%) of the total cost of such Utilities. The
Landlord will be entitled, acting equitably, to allocate to the Leased Premises
an additional charge, as determined by the Landlord's engineer, for the excess
supply to, and usage of, water, electricity, steam and other Utilities in the
Leased Premises in excess of the standard usage of general office premises in
the Building. Charges for Utilities will be payable in equal monthly
installments in advance on the basis of an initial rate determined by the
Landlord's engineers. If the public utility rate and other taxes or charges in
connection therewith for the supply of any Utility is increased or decreased
during the Term, the charges in respect thereof will be equitably adjusted and
the decision of the Landlord, acting reasonably, will be final, and the Tenant
agrees to pay such increased charges on demand as Additional Rent. The Tenant
will in addition, pay for all costs of supplying Utilities to the Leased
Premises after Normal Business Hours as determined by the Landlord's engineers.

     (b) The Landlord will have the exclusive right to attend to any replacement
of electric light bulbs, tubes and ballasts in the Leased Premises. The Landlord
may adopt a system of relamping and reballasting periodically on a group basis
in accordance with good commercial practice. The Tenant will pay to the Landlord
as Additional Rent, on the first day of each month during the Term, a
competitive monthly charge per bulb, tube and ballast on account of the cost of
replacement. If the cost of such replacement increases or decreases during the
Term, the Landlord will adjust the Additional Rent payable for such replacement
on an equitable basis and the Tenant will pay such Additional Rent, as adjusted
on demand. The decision of the Landlord,

                                       13

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acting reasonably, with respect to any such adjustment, and the Additional Rent
based thereon, will be final and binding on the parties hereto. If the Landlord
does not adopt the system of relamping and reballasting, as aforesaid, then the
replacement of electric light bulbs, tubes and ballasts in the Leased Premises
will be undertaken by the Landlord at such time as they actually burn out and
after notice from the Tenant that replacement is required. In such event, the
cost of replacement and installation will be paid by the Tenant to the Landlord
within five (5) days after demand as Additional Rent.

     (c) The Tenant will pay as Additional Rent any charges resulting from the
use of equipment necessitating a dedicated circuitry or specialized power
equipment. At the Landlord's reasonable discretion, such charges may be metered
separately from general power consumption.

     (d) The Tenant will pay for the cost of any metering which the Tenant
requests the Landlord to install in the Leased Premises or the Building, or
which the Landlord wishes to install in the Building for the purpose of
assisting in determining the consumption of any Utility (including electricity
and water) in the Leased Premises or which may be required by the Landlord to
measure or estimate any excess usage of electricity, water or other Utility.

                                    ARTICLE 6

                           Use of the Leased Premises

Section 6.1 Use of the Leased Premises

     The Leased Premises will be used solely for general office purposes,
provided such purposes comply with the terms, covenants and conditions of this
Lease and with all applicable laws, bylaws, regulations or other governmental
ordinances from time to time in existence. The Tenant shall have the right to
use the Premises for any use permitted by the applicable zoning by-laws and
other legislation, and approved by the Landlord. The Landlord represents and
warrants that the Tenant's proposed use, namely as business offices, is
permitted by the applicable zoning by-laws and other legislation for the
Premises.

Section 6.2 Conduct of Business

     The Tenant acknowledges and agrees that it is only one of many tenants in
the Building and accordingly, the Tenant will conduct its business in the Leased
Premises in a reputable manner. The Tenant will occupy the Leased Premises and
commence its business operations in the Leased Premises from and after the
Commencement Date and will thereafter throughout the Term conduct the business
set out in Section 6.1 in the whole of the Leased Premises in a reputable and
first-class manner.

     Any business, conduct or practice promulgated, carried on or maintained by
the Tenant, whether through advertising or selling procedures or otherwise,
which in the opinion of the Landlord, acting reasonably, may harm or tend to
harm the business or reputation of the Landlord or reflect unfavorably on the
whole or any part of the Building, the Landlord or other

                                       14

<PAGE>

tenants in the Building, will be immediately discontinued by the Tenant at the
request of the Landlord and the Landlord shall use reasonable efforts to enforce
compliance with this Section by all Tenants in the Building.

     The Tenant agrees not to refer to the Building by any name other than that
designated from time to time by the Landlord and the Tenant will use the name of
the Building for the business address of the Tenant but for no other purpose.

Section 6.3 Observance of Law

     The Tenant will, at its expense and subject to Section 8.2, promptly:

     (a) comply with all provisions of law including, without limitation, all
requirements of all governmental authorities, including federal, provincial and
municipal legislative enactments, by-laws, police, fire and sanitary regulations
(whether imposed by governmental authorities or fire insurance underwriters),
and other regulations now or hereafter in force which pertain to or affect the
Leased Premises, the Tenant's use of the Leased Premises or the conduct of any
business in the Leased Premises, or the making of any repairs, replacements,
alterations, or other changes to the Leased Premises;

     (b) obtain all necessary permits, licenses and approvals relating to the
use and occupancy of the Leased Premises and the conduct of business therein,
including without limitation, those required under the Business Corporations Act
(Ontario) and the Investment Canada Act (Canada);

     (c) carry out all modifications, alterations or changes of or to the Leased
Premises and the Tenant's conduct of business in or use of the Leased Premises
which are required by any such authorities, as set out herein.

     Without limiting the generality of the foregoing, the Tenant will:

               (i)  co-operate with the Landlord in, and comply with all laws,
by-laws, regulations and orders relating to, the conservation of all forms of
energy in and serving the Building and the Leased Premises; and

               (ii) at its own cost and expense comply with all reasonable
requests and demands of the Landlord made with a view to such energy
conservation.

     It is understood and agreed that:

                    (1)  any and all costs and expenses paid or incurred by the
Landlord in installing energy conservation equipment and physical safety systems
will be included in Operating Costs for the purposes of Section 3.5; and

                    (2)  the Landlord will not be liable to the Tenant in any
way for any loss, costs, damages or expenses whether direct or consequential,
paid, suffered or incurred by the Tenant due to any reduction in the services
provided by the Landlord to the Tenant or to

                                       15

<PAGE>

the Building, or any part thereof, as a result of the Landlord's compliance with
such laws, by-laws, regulations or orders.

                                    ARTICLE 7

                             Insurance and Indemnity

Section 7.1 Tenant's Insurance

     (a) The Tenant will, throughout the Term (and at any other time during
which the Tenant is in possession of the Leased Premises), at its expense, take
out and keep in full force and effect and in the names of the Tenant, the
Landlord and the Mortgagee, as their respective interests may appear, the
following insurance:

               (i)  fire and standard extended coverage insurance including
sprinkler leakages (where applicable), earthquake, flood and collapse, in an
amount equal to the full replacement cost (new) thereof upon all property of
every description and kind owned by the Tenant, or for which the Tenant is
legally liable, or installed by or on behalf of the Tenant, and which is located
within or on the Building, including, without limitation, fittings,
installations, alterations, additions, partitions, signs (interior and exterior)
fixtures, leasehold improvements, stock-in-trade, furniture and moveable
equipment. If there is a dispute as to the amount which comprises full
replacement cost (new), the decision of the Landlord or the Mortgagee shall be
conclusive;

               (ii) if applicable, broad form boiler and machinery insurance on
a blanket repair and replacement basis with limits for each accident in an
amount of not less than the replacement cost (new) of all leasehold improvements
and of all boilers, pressure vessels, air-conditioning equipment and
miscellaneous electrical apparatus owned or operated by the Tenant or by others
(other than the Landlord) on behalf of the Tenant in the Leased Premises, or
relating to or serving the Leased Premises;

               (iii) business interruption insurance in such amount as will
reimburse the Tenant for direct or indirect loss of earnings attributable to all
perils insured against in Sections 7.1(a)(i) and 7.1(a)(ii) and other perils
commonly insured against by prudent tenants or attributable to prevention of
access to the Leased Premises or the Building as a result of such perils;

               (iv) public liability and property damage insurance, including
personal injury liability, contractual liability, employers' liability,
non-owned automobile liability and owners' and contractors' protective insurance
coverage with respect to the Leased Premises and the Tenant's use of the
Building, coverage to include the activities and operations of the Tenant and
any other Person on the Leased Premises or performing work on behalf of the
Tenant and those for whom the Tenant is in law responsible in any other part of
the Building and the Lands. Such policies will (1) be written on a comprehensive
basis with inclusive limits of not less than $5,000,000 for bodily injury to any
one or more Persons, or property damage, and such higher

                                       16

<PAGE>

limits as the Landlord, acting reasonably, or the Mortgagee requires from time
to time; and (2) contain a severability of interests clause and a
cross-liability clause;

               (v)  tenants' legal liability insurance for the actual cash value
of the Leased Premises, including loss of use thereof. Any and all claims in
respect of such insurance shall be adjusted by the Landlord; and

               (vi) any other form of insurance as the Tenant or the Landlord,
acting reasonably, or the Mortgagee requires from time to time in form, in
amounts and for insurance risks against which a prudent tenant would insure.

     (b) The Tenant's insurance policies will:

               (i)  where applicable, contain the Mortgagee's standard mortgage
clause and a waiver of any subrogation rights which the Tenant's insurers may
have against the Landlord and against those for whom the Landlord is in law
responsible, whether any such damage is caused by the act, omission or
negligence of the Landlord or those for whom the Landlord is in law responsible;

               (ii) be taken out with insurers acceptable to the Landlord and be
in a form satisfactory from time to time to the Landlord;

               (iii) be non-contributing and apply only as primary and not as
excess to, any other insurance available to the Landlord or the Mortgagee;

               (iv) not be invalidated with respect to the interests of the
Landlord and the Mortgagee by reason of any breach or violation of any
warranties, representations, declarations or conditions contained in the
policies; and

               (v)  contain an undertaking by the insurers to notify the
Landlord and the Mortgagee in writing not less than thirty (30) days prior to
any material change, cancellation or termination.

     (c) The Tenant agrees that certificates of insurance on the Landlord's
standard form or, if required by the Landlord or the Mortgagee, certified copies
of each such insurance policy, will be delivered to the Landlord as soon as
practicable after the placing of the required insurance. No review or approval
of any such insurance certificate by the Landlord shall derogate from or
diminish the Landlord's rights or the Tenant's obligations contained in this
Lease including, without limitation, those contained in this Article VII.

     (d) If the Tenant fails to take out or to keep in force any insurance
referred to in this Section 7.1, or should any insurance not be approved by
either the Landlord or the Mortgagee and should the Tenant not commence to
diligently rectify (and thereafter proceed to diligently rectify) the situation
within forty-eight (48) hours after written notice by the Landlord to the Tenant
(stating, if the Landlord or the Mortgagee does not approve of such insurance,
the reasons therefor) the Landlord has the right, without assuming any
obligation in connection

                                       17

<PAGE>

therewith, to effect such insurance at the sole cost of the Tenant and all
outlays by the Landlord, together with a sum equal to fifteen percent (15%)
thereof representing the Landlord's overhead, will be paid by the Tenant to the
Landlord as Additional Rent on the first day of the next month following said
payment by the Landlord without prejudice to any other rights and remedies of
the Landlord under this Lease.

     (e) If there is damage or destruction to the leasehold improvements in the
Leased Premises, the Tenant will use the proceeds of its insurance for the
purpose of repairing or restoring such leasehold improvements. In the event of
damage to or destruction of the Building entitling the Landlord to terminate the
Lease pursuant to Section 9.2, then, if the Leased Premises have also been
damaged or destroyed, the Tenant will forthwith pay to the Landlord all of its
insurance proceeds relating to the leasehold improvements in the Leased Premises
and if the Leased Premises have not been damaged or destroyed, the Tenant will
upon demand deliver to the Landlord, in accordance with the provisions of this
Lease, the leasehold improvements and the Leased Premises.

Section 7.2 Increase in Insurance Premiums

     If (a) the occupancy of the Leased Premises; (b) the conduct of business in
the Leased Premises; or (c) any acts or omissions of the Tenant in the Building
or any part thereof causes or results in any increase in premiums for the
insurance carried from time to time by the Landlord with respect to the
Building, the Tenant will pay any such increase in premiums as Additional Rent
within five (5) days after invoices for such additional premiums are rendered by
the Landlord. In determining whether increased premiums are caused by or result
from the use or occupancy of the Leased Premises, a schedule issued by the
organization computing the insurance rate on the Building showing the various
components of such rate, will be conclusive evidence of the several items and
charges which make up such rate.

Section 7.3 Cancellation of Insurance

     If any insurance policy upon the Building or any part thereof is cancelled
or threatened by the insurer to be cancelled, or the coverage thereunder reduced
in any way by the insurer by reason of the use and occupation of the Leased
Premises by the Tenant or by any Person permitted by the Tenant to be upon the
Leased Premises, and if the Tenant fails to remedy the condition giving rise to
cancellation, threatened cancellation or reduction of coverage within
forty-eight (48) hours after notice by the Landlord, the Landlord may, at its
option, either (a) re-enter and take possession of the Leased Premises pursuant
to Article XIII, or (b) at the Tenant's expense, enter upon the Leased Premises
and remedy the condition giving rise to such cancellation, threatened
cancellation or reduction, including the removal of any offending article. The
Landlord shall not be liable for any damage or injury caused to any property of
the Tenant or of others located on the Leased Premises as a result of the
exercise of any of its rights pursuant to this Section 7.3.

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<PAGE>

Section 7.4 Loss or Damage

     The Landlord is not liable for any death or injury arising from or out of
any occurrence in, upon, at, or relating to the Building or the Lands, or damage
to any of the property of the Tenant or of others wherever located, including
without limitation, the Building, the Leased Premises or the Lands, whether or
not resulting from (a) the negligence of the Landlord or those for whom it may
in law be responsible; (b) the exercise by the Landlord of any of its rights
under this Lease; or (c) the Landlord's failure to supply any services,
facilities or utilities required by this Lease. Without limiting the generality
of the foregoing, the Landlord shall not be liable for any injury or damage to
Persons or property resulting from fire, explosion, falling plaster, falling
ceiling tile, falling ceiling fixtures (including part or all of the ceiling T
grid system) and diffuser coverings, steam, gas, electricity, water, rain,
flood, snow or leaks from any part of the Building, including pipes, sprinklers,
appliances, plumbing works, roof, windows or the surface of any floor or ceiling
of the Building or from any lands adjoining the Building. All property of the
Tenant kept or stored on the Leased Premises will be so kept or stored at the
risk of the Tenant only and the Tenant shall indemnify the Landlord and save it
harmless from any claims arising out of any damages to the same including,
without limitation, any subrogation claims by the Tenant's insurers.

Section 7.5 Landlord's Insurance

     The Landlord will at all times throughout the Term carry (a) insurance on
the Building (excluding the foundations and excavations) and the machinery,
boilers end equipment contained therein or servicing the Building and owned by
the Landlord (specifically excluding any property with respect to which the
Tenant and other tenants are obliged to insure pursuant to Section 7.1 or
similar sections of their respective leases) against damage by fire and extended
perils coverage in such reasonable amounts and with such reasonable deductions
as would be carried by a prudent owner of a reasonably similar office building,
having regard to size, age and location; (b) public liability and property
damage insurance with respect to the Landlord's operations in the Building in
such reasonable amounts and with such reasonable deductions as would be carried
by a prudent owner of a reasonably similar office building, having regard to
size, age and location; and (c) such other form or forms of insurance as the
Landlord or the Mortgagee reasonably considers advisable. Notwithstanding the
Landlord's covenant contained in this Section 7.5 and notwithstanding any
contribution by the Tenant to the cost of the Landlord's insurance premiums, the
Tenant acknowledges and agrees that (i) the Tenant is not relieved of any
liability arising from or contributed to by its negligence or its willful acts
or omissions, and (ii) no insurable interest is conferred upon the Tenant under
any policies of insurance carried by the Landlord and the Tenant has no right to
receive any proceeds of any such insurance policies carried by the Landlord.

Section 7.6 Indemnification of the Landlord

     Notwithstanding any other terms, covenants and conditions contained in this
Lease, the Tenant will indemnify the Landlord and save it harmless from and
against any and all loss (including loss of all Basic Rent and Additional Rent
payable by the Tenant pursuant to this

                                       19

<PAGE>

Lease), claims, actions, damages, liability and expense in connection with loss
of life, personal injury, damage to property (including any part of tge
Building) or any other loss or injury whatsoever arising from or out of this
Lease, or any occurrence in, upon or at the Leased Premises, or the occupancy or
use by the Tenant of the Leased Premises, or occasioned wholly or in part by any
act or omission of the Tenant or by any Person permitted to be on the Leased
Premises by the Tenant. If the Landlord will, without fault on its part, be made
a party to any litigation commenced by or against the Tenant, then the Tenant
will protect, indemnify and hold the Landlord harmless and will pay all costs,
expenses and reasonable legal fees incurred or paid by the Landlord in
connection with such litigation. The Tenant will also pay all costs, expenses
and legal fees (on a solicitor and his client basis) that may be incurred or
paid by the Landlord in enforcing the terms, covenants and conditions in this
Lease.

                                    ARTICLE 8

                      Maintenance, Repairs and Alterations

Section 8.1 Maintenance and Repairs by the Tenant

     (a) The Tenant will at all times at its expense maintain the whole of the
Leased Premises, including without limitation, all interior partitions, signs,
doors, fixtures, shelves, equipment and appurtenances thereof and improvements
thereto (including without limitation, all electrical, lighting, wiring,
plumbing fixtures and equipment and the heating, ventilating and
air-conditioning systems and equipment within or installed by or on behalf of
the Tenant for the Leased Premises), in good order, first-class condition and
repair (which shall include, without limitation, periodic painting and
decoration), as determined by the Landlord, acting reasonably, and the Tenant
shall make all needed repairs and replacements with due diligence and dispatch.

     (b) The Tenant will leave the Leased Premises in a reasonably tidy
condition at the end of each Business Day in order that the Landlord's cleaning
services can be performed.

     (c) The Tenant will pay within five (5) days after demand, as Additional
Rent, the cost of replacement of any glass broken on the Leased Premises
including outside windows and doors of the perimeter of the Leased Premises
(including perimeter windows in the exterior walls).

Section 8.2 Landlord's Approval of the Tenant's Repairs

     The Tenant will not make any substantial repairs, alterations,
replacements, decorations or improvements (the "Alterations") to any part of the
Leased Premises without first obtaining the Landlord's written approval. The
Tenant will submit to the Landlord: (a) details of the proposed work including
professionally prepared drawings and specifications; (b) any indemnification
against liens, costs, damages and expenses as the Landlord requires; and (c)
evidence satisfactory to the Landlord that the Tenant has obtained, at its
expense, all necessary consents, permits, licenses and inspections from all
governmental and regulatory authorities having jurisdiction. All Alterations
will be performed: (i) at the Tenant's expense;

                                       20

<PAGE>

(ii) by competent workmen; (iii) in a good and workmanlike manner; (iv) in
accordance with the drawings and specifications approved by the Landlord; and
(v) subject to the reasonable regulations, controls and inspection of the
Landlord.

     Any Alterations made by the Tenant without the prior written consent of the
Landlord or which are not made in accordance with the drawings and
specifications approved by the Landlord will, if requested by the Landlord, be
promptly removed by the Tenant at the Tenant's expense and the Leased Premises
restored to their previous condition. Failing such removal, the Landlord will be
entitled to remove any Alterations forthwith without notice and at the Tenant's
expense. In any event, no Alterations will be permitted if the Landlord
determines that such Alterations may weaken or endanger the structure of the
Building, adversely affect the condition or operation of the Leased Premises or
the Building or diminish the value thereof, exceed, restrict or reduce the
Landlord's coverage for zoning purposes, or cause the Landlord to buy out or
provide additional parking spaces.

     If, however, any Alterations approved by the Landlord affect the structure
of the Leased Premises or any other part of the Building, or any of the
electrical, mechanical or other base building systems, the Alterations (or the
appropriate part thereof) will be performed only by the Landlord, at the
Tenant's expense. Upon completion thereof, the Tenant will pay to the Landlord,
as Additional Rent within five (5) days after demand, both the landlord's costs
relating to any such Alterations, including the fees of any architectural and
engineering consultants, and a sum equal to fifteen percent (15%) of the total
cost thereof representing the Landlord's overhead.

Section 8.3 Maintenance by the Landlord

     (a) The Landlord will, subject to Section 8.1 and Article IX, maintain and
repair, or cause to be maintained and repaired, as would a prudent owner of a
reasonably similar office building, the structure of the Building, including,
without limitation, the foundations, exterior wall assemblies including weather
walls, sub-floor, roof, bearing walls, and structural columns and beams of the
Building and the mechanical, electrical and other base building systems of the
Building. The cost of such maintenance and repairs will be included in Operating
Costs in accordance with Paragraph 18 of Schedule "F". Notwithstanding the
foregoing, if the Landlord is required, due to the business carried on by the
Tenant, to make such repairs or replacements by reason of the application of
laws, ordinances or other regulations of any governmental body, or by reason of
any act, omission to act, neglect or default of the Tenant or those from whom
the Tenant is in law responsible, then, in any such event, the Tenant will be
liable for the total cost of any such repairs or replacements plus a sum equal
to fifteen percent (15%) of the total cost of such repairs or replacements
representing the Landlord's overhead, which shall immediately become due and
payable to the Landlord as Additional Rent within five (5) days after demand.

     (b) The Tenant acknowledges and agrees that the Landlord is not 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 by reason of (i) the failure,
cessation or interruption of any Utilities, equipment, facilities

                                       21

<PAGE>

or systems servicing the Building or the Leased Premises provided that these are
not caused by Landlord's negligence, (whether or not supplied by the Landlord or
others), or (ii) reasonable delays in the performance of any repairs,
replacements and maintenance for which the Landlord is responsible pursuant to
this Lease.

     (c) If the Tenant refuses or neglects to carry out any repairs as required
pursuant to Section 8.1, and to the reasonable satisfaction of the Landlord, the
Landlord may, but will not be obliged to, make such repairs without being liable
for any loss or damage that may result to the Tenant's equipment, fixtures or
other property or to the Tenant's business by reason thereof, and upon
completion, the Tenant will pay to the Landlord as Additional Rent within five
(5) days after demand, both the Landlord's costs relating to any such repairs
and a sum equal to fifteen percent (15%) thereof representing the Landlord's
overhead.

     (d) If any elevator servicing the Building or any of the mechanical or base
building equipment, facilities or systems in respect of the Building are damaged
or destroyed or are in need of repair, the Landlord will have a reasonable time
in which to make the required repairs or replacements necessary for the
resumption of such services to the Leased Premises (to the extent of the
Landlord's obligations under this Lease) and the Tenant is not entitled to any
compensation or damages therefor; but if any of the foregoing items become
impaired, damaged or destroyed as a result of any of the circumstances referred
to in Section 8.6, the Tenant will be responsible for the cost of repairing,
restoring or making good such damage in accordance with the provisions of
Section 8.6.

Section 8.4 Repair on Notice

     In addition to the obligations of the Tenant contained in Section 8.1, the
Tenant will effect all repairs or replacements referred to therein according to
notice from the Landlord, but the failure to give notice will not relieve the
Tenant from its obligation to repair.

Section 8.5 Surrender of the Leased Premises

     At the expiration or earlier termination of the Term, the Tenant will
peaceably surrender the Leased Premises to the Landlord in good condition,
reasonable wear and tear excepted. The Tenant will surrender all keys for the
Leased Premises to the Landlord at the place then fixed for the payment of Rent
and will inform the Landlord of all combinations of locks, safes and vaults, if
any, in the Leased Premises.

Section 8.6 Repair Where the Tenant is at Fault

     Notwithstanding any other provisions of this Lease including, without
limitation, the Landlord's obligations to repair set out in Section 8.3, the
Landlord's obligations to take out insurance set out in Section 7.5, and the
Tenant's obligation to pay its Proportionate Share of the cost of insurance set
out in Paragraph 18(b)(i) of Schedule "F", if the Building or any part thereof,
or any equipment, machinery, facilities or improvements contained therein or
made thereto, or the roof or outside walls of the Building or any other
structural portions thereof require repair or replacement or become damaged or
destroyed through the negligence,

                                       22

<PAGE>

carelessness or misuse of the Tenant or those for whom it is in law responsible
or by any Person having business with the Tenant or by the Tenant or those for
whom it is in law responsible in any way stopping up or damaging the climate
control, heating and air-conditioning apparatus, water pipes, drainage pipes or
other equipment or facilities or parts of the Building, the cost of the
resulting repairs, replacements or alterations plus a sum equal to fifteen
percent (15%) of the cost thereof representing the Landlord's overhead will be
paid by the Tenant to the Landlord as Additional Rent within five (5) days after
presentation of an account of such expenses incurred by the Landlord.

Section 8.7 Tenant Not To Overload Facilities

     The Tenant will not install any equipment which will exceed or overload the
capacity of any utility, electrical or mechanical facilities in the Leased
Premises and the Tenant will not bring into the Leased Premises or install any
utility, electrical or mechanical facility or service which the Landlord does
not approve. The Tenant agrees that if any equipment installed by the Tenant
requires additional utility, electrical or mechanical facilities, the Landlord
may, in its sole discretion, if they are available, elect to install them at the
Tenant's expense and in accordance with plans and specifications to be approved
in advance in writing by the Landlord.

Section 8.8 Tenant Not To Overload Floors

     The Tenant will not bring upon the Building or the Leased Premises any
machinery, equipment, article or thing that by reason of its weight, size or
use, might in the opinion of the Landlord damage the Building or the Leased
Premises and will not at any time overload the floors of the Leased Premises. If
any damage is caused to the Building or the Leased Premises by any machinery,
equipment, object or thing or by overloading, the Tenant will forthwith repair
such damage, or at the option of the Landlord, pay the Landlord within five (5)
days after demand as Additional Rent, the cost of repairing such damage plus a
sum equal to fifteen percent (15%) of such cost representing the Landlord's
overhead.

Section 8.9 Removal and Restoration by the Tenant

     (a) All alterations, fixed decorations, additions and improvements (the
"Improvements") made by the Tenant, or made by the Landlord on the Tenant's
behalf (other than the Tenant's trade fixtures) will immediately become the
property of the Landlord upon affixation or installation, without compensation
therefor to the Tenant, but the Landlord is under no obligation to repair,
maintain or insure the Improvements. Such Improvements will not be removed from
the Leased Premises either during or at the expiration or earlier termination of
the Term, except that:

               (i)  the Tenant may during the Term in the usual or normal course
of its business and with the prior written consent of the Landlord remove its
trade futures, provided such trade fixtures have become excess for the Tenant's
purposes or the Tenant is substituting new and similar trade fixtures therefor,
and provided that in each case, (1) the Tenant is not in default under this
Lease and (2) such removal is done at the Tenant's expense; and

                                       23

<PAGE>

               (ii) the Tenant will, at the expiration of the Term, at its own
cost, remove all of its trade fixtures installed in the Leased Premises.

     (b) If the Tenant does not remove its trade futures at the expiration or
earlier termination of the Term, the trade fixtures will, at the option of the
Landlord, become the property of the Landlord and may be removed from the Leased
Premises and sold or disposed of by the Landlord in such manner as it deems
advisable.

     (c) The Tenant will effect the installation or removal of any such trade
futures or Improvements only at the times designated by the Landlord and will
promptly make good any damage caused to the Leased Premises or the Building by
the installation or removal of any such Improvements.

     (d) For greater certainty, the Tenant's trade fixtures exclude: (i)
heating, ventilating or air conditioning systems, facilities and equipment; (ii)
floor covering affixed to the floor of the Leased Premises; (iii) light
fixtures; (iv) internal stairways and doors, if any; and (v) all futures,
improvements, installations, alterations or additions which are installed by or
at the expense of the Landlord pursuant to Schedule "C"; all of which are deemed
to be leasehold improvements.

Section 8.10 Notice by the Tenant

     The Tenant, as soon as it becomes aware, will notify the Landlord of any
damage to, or deficiency or defect in any part of, the Building, including the
Leased Premises, any equipment or utility systems, or any installations located
therein, notwithstanding that the Landlord may have no obligation in connection
therewith.

Section 8.11 Tenant to Discharge all Liens

     The Tenant will promptly pay all of its contractors and other Persons
supplying materials or performing work on its behalf in respect of the Leased
Premises and will do all things necessary so as to ensure that no lien is
registered against the Lands, the Building or the Tenant's leasehold interest
therein. If any such lien is made, filed or registered, the Tenant will
discharge it, or cause it to be discharged, forthwith at the Tenant's expense.

     If the Tenant fails to discharge, or cause any such lien to be discharged,
then, in addition to any other right or remedy of the Landlord, the Landlord
may, but it will not be obligated to, discharge the lien by paying the amount
claimed to be due, and any additional amounts as may be required at law or
otherwise, into Court and the amount so paid by the Landlord plus the sum of
$750.00 representing the Landlord's overhead plus all costs and expenses
including solicitor's fees (on a solicitor and his client basis) incurred as a
result of the registration or discharge of any such lien, will be immediately
due and payable by the Tenant to the Landlord as Additional Rent within five (5)
days after demand.

                                       24

<PAGE>

Section 8.12 Signs and Advertising

     The Tenant will not place or permit to be placed any sign, picture,
advertisement, notice, lettering or decoration on any part of the outside of the
Building or the leased Premises or anywhere in the interior of the Leased
Premises which is visible from the outside of the Building or the Leased
Premises. The Landlord shall, at the Tenant's expense, provide signage
indicating the Suite number and Tenant identification at the main entrance to
the Leased Premises. This signage shall be in accordance with the Landlord's
Building standards and shall be installed at the Tenant's expense. At the
expiration of the Term or earlier termination of this Lease, the Tenant will
remove all signs, pictures, advertisements, notices, letterings or decorations
from the Leased Premises at the Tenant's expense and will promptly repair all
damage cause by its installation and removal.

                                    ARTICLE 9

                             Damage and Destruction

Section 9.1 Destruction of the Leased Premises

     (a) If the Leased Premises are destroyed or damaged (including, without
limitation, smoke and water damage) as a result of fire, the elements, accident
or other casualty required to be insured against by the Landlord pursuant to
Section 7.5 or otherwise insured against by the Landlord and not caused by the
Tenant, and if as a result of such occurrence:

               (i)  the Leased Premises are rendered wholly or partially
untenantable, this Lease will continue in full force and effect and the Landlord
will, subject to Sections 9.1(b) and 9.2(a), commence diligently to restore the
Leased Premises to the extent only of the Landlord's Work as set out in Schedule
"C" and then only to the extent of the insurance proceeds actually received by
the Landlord, and only Basic Rent (but not Additional Rent) will abate entirely
or proportionately, as the case may be, to the portion of the Leased Premises
rendered untenantable from the date of the destruction or damage until the
Leased Premises have been restored and rendered tenantable by the Landlord to
the extent of its obligations hereunder; or

               (ii) the Leased Premises are not rendered untenantable in whole
or in part, the Lease will continue in full force and effect, the Rent and other
amounts payable by the Tenant will not abate and the Landlord shall, subject to
Sections 9.1(b) and 9.2(a), commence diligently to restore the Leased Premises
to the extent set forth in this Section 9.1.

     (b) Notwithstanding Section 9.1(a), if the Leased Premises are damaged or
destroyed by any cause whatsoever, and if, in the opinion of the Landlord,
acting reasonably, the Leased Premises cannot be rebuilt or made fit for the
purposes of the Tenant within sixty (60) days of the damage or destruction, the
Landlord, instead of rebuilding or making the Leased Premises fit for the Tenant
in accordance with Section 9.1(a) may, at its option, elect to terminate this
Lease by giving to the Tenant, within thirty (30) days after such damage or
destruction, notice of termination, and thereupon Rent and any other payments
for which the Tenant is liable under this Lease will be apportioned and paid to
the date of such damage or destruction.

                                       25

<PAGE>

     (c) Upon the Tenant being notified in writing by the Landlord that the
Landlord's Work as set out in Schedule "C" has been substantially completed, the
Tenant will forthwith complete all Tenant's Work including, without limitation,
such work as is set out in Schedule "C" and all work required to fully restore
the Leased Premises for business. The Tenant will diligently complete the
Tenant's Work and, if the Leased Premises have been closed for business, reopen
for business within thirty (30) days after notice that the Landlord's Work is
substantially completed.

     (d) Nothing in this Section 9.1 requires the Landlord to rebuild the Leased
Premises in the condition and state that existed before any such damage or
destruction, provided that the Leased Premises, as re-built, will have
reasonably similar facilities and services to those in the Leased Premises prior
to the damage or destruction having regard, however, to the age of the Building
at such time.

Section 9.2 Destruction of the Building

     (a) Notwithstanding the provisions of Section 9.1, if twenty-five percent
(25%) or more of the Total Rentable Area of the Building is damaged or destroyed
by any cause whatsoever (irrespective of whether the Leased Premises are damaged
or destroyed) and if, in the opinion of the Landlord, acting reasonably, the
Total Rentable Area of the Building so damaged or destroyed cannot be rebuilt or
made fit for the purposes of the respective tenants of such space within one
hundred and twenty (120) days of the damage or destruction, then, the Landlord
may, at its option (to be exercised by written notice to the Tenant within sixty
(60) days following such damage or destruction), elect to terminate this Lease.
In the case of such election, the Term and the tenancy hereby created will
expire upon the thirtieth day after such notice is given, without indemnity or
penalty payable by, or any other recourse against, the Landlord, and the Tenant
shall, within such thirty (30) day period, vacate and surrender the Leased
Premises to the Landlord. Rent will be due and payable without reduction or
abatement subsequent to the destruction or damage and until the date of
termination, unless the Leased Premises will have been destroyed or damaged as
well, in which event Section 9.1 will apply.

     (b) If any part of the Building is destroyed or damaged and the Landlord
does not elect to terminate this Lease in accordance with Section 9.2(a), the
Landlord will commence diligently to restore that part of the Building damaged
or destroyed, but only to the extent of the Landlord's responsibilities pursuant
to the terms of the various leases for the premises in the Building, and
exclusive of any tenant's responsibilities set out therein. If the Landlord
elects to restore the Building, or any part thereof, the Landlord may restore
according to plans, specifications and working drawings other than those used in
the original construction of the Building.

Section 9.3 Expropriation

     Both the Landlord and the Tenant agree to co-operate with the other in
respect of any expropriation of all or any part of the Leased Premises or the
Building, so that each may receive the maximum award in the case of any
expropriation to which they are respectively entitled at law. To the extent that
any portion of the Building, other than the Leased Premises, is

                                       26

<PAGE>

expropriated, then, the full proceeds accruing or awarded as a result thereof
will belong solely to the Landlord and the Tenant will abandon or assign to the
Landlord any rights which the Tenant may have or acquire by operation of law to
such proceeds or award and will execute all such documents as in the opinion of
the Landlord are necessary to give effect to this intention.

Section 9.4 Architect's Certificate

     The certificate of the Architect will bind the parties as to (a) the
percentage of the Total Rentable Area of the Building damaged or destroyed; (b)
the period of time required to restore the Leased Premises or the Building; (c)
whether or not the Leased Premises are rendered untenantable and the extent of
such untenantability; (d) the date upon which the Landlord's Work or Tenant's
Work of restoration is completed or substantially completed and the date when
the Leased Premises are rendered tenantable; and (e) the state of completion of
any work of either the Landlord or the Tenant under this Lease.

                                   ARTICLE 10

                                Transfer and Sale

Section 10.1 Assignment and Subletting

     (a) The Tenant will not: (i) assign this Lease in whole or in part; (ii)
sublet, license, share or part with possession of all or any part of the Leased
Premises; nor (iii) mortgage or encumber this Lease or the Leased Premises, to
or in favour of any Person (collectively, a "Transfer") without the prior
written consent of the Landlord in each instance which consent will not be
unreasonably withheld or delayed. Provided however, notwithstanding any
statutory provision to the contrary, it will not be considered unreasonable for
the Landlord to take into account the following factors in deciding whether to
grant or withhold its consent: (i) whether any such Transfer violates or
breaches any covenants or restrictions granted by the Landlord to other existing
or prospective tenants or occupants of the Building; (ii) whether in the
Landlord's opinion the financial background, business history and capability of
the proposed Transferee is satisfactory; and (iii) whether any such Transferee
intends to actually use and occupy the Leased Premises in accordance with the
terms of this Lease. The consent by the Landlord to any Transfer will not
constitute a waiver of the necessity for consent to any subsequent Transfer.
This restriction against a Transfer includes a prohibition against a Transfer by
operation of law, including without limitation, an amalgamation. No Transfer
will take place by reason of a failure by the Landlord to give notice to the
Tenant within thirty (30) days as required by Section 10.1(b).

     (b) If the Tenant intends to effect a Transfer, in whole or in part, the
Tenant will give prior written notice to the Landlord of such intent, specifying
the proposed assignee, subtenant, occupant or other Person taking the Transfer
(collectively, the "Transferee") and providing such information with respect
thereto including, without limitation, information concerning the principals
thereof and as to any credit, financial or business information relating to the
proposed Transferee, as the Landlord or the Mortgagee requires. The Landlord
will, within thirty (30) days after having received such notice and all such
necessary information, notify the

                                       27

<PAGE>

Tenant in writing either that (i) it consents or does not consent to the
Transfer in accordance with the provisions and qualifications of Section
10.1(a),

     (c) If there is a permitted Transfer, the Landlord may collect Rent from
the Transferee and apply the net amount collected to the Rent required to be
paid pursuant to this Lease, but no acceptance by the Landlord of any payments
by a Transferee will be deemed a waiver of this covenant, or the acceptance of
the Transferee as Tenant, or a release of the Tenant from the further
performance by the Tenant of its covenants or obligations contained in this
Lease. Any document evidencing the Transfer will be prepared by the Landlord or
its solicitors, and all reasonable legal costs with respect thereto will be paid
by the Tenant to the Landlord or its solicitors within five (5) days after
demand as Additional Rent. Any consent by the Landlord will be subject to the
Tenant executing and causing the Transferee to promptly execute an agreement
directly with the Landlord agreeing (i) to be bound by all of the terms,
covenants and conditions contained in this Lease as if the Transferee had
originally executed this Lease as Tenant. Notwithstanding any Transfer, the
Tenant will be jointly and severally liable with the Transferee on this Lease
and will not be released from performing any of the terms, covenants and
conditions of this Lease.

Section 10.2 No Advertising of the Leased Premises

     The Tenant will not print, post, display or broadcast any notice or
advertisement, for the purpose of a Transfer, and it will not permit any broker
or other Person to do any of the foregoing, unless the complete text and format
of any such notice or advertisement is first approved in writing by the
Landlord, acting reasonably. In no event, will any text or format proposed by
the Tenant contain any reference to the rental rate of the Leased Premises.

Section 10.3 Corporate Ownership

     (a) If the Tenant is a corporation or if the Landlord has consented to a
Transfer of this Lease to a corporation, any transfer or issue by sale,
assignment, bequest, inheritance, operation of law or other disposition, or by
subscription from time to time of all or any part of the corporate shares of the
Tenant or of any holding body corporate or subsidiary body corporate of the
Tenant or any corporation which is affiliated with the Tenant (as those terms
are defined pursuant to the Canada Business Corporations Act and amendments
thereto), which results in any change in the present effective voting control of
the Tenant by the Person holding such voting control at the date of execution of
this Lease (or at the date a Transfer of this Lease to a corporation is
permitted) will for the purposes of this Section 10.3 be deemed to be a Transfer
and the provisions of Sections 10.1(a) to 10.1(d), inclusive, will apply to a
Transfer under this Section 10.3.

     (b) The Tenant will (i) when requesting consent to a Transfer pursuant to
Section 10.3(a), provide the Landlord with such information as to the proposed
purchaser as the Landlord requires including, without limitation, information
concerning creditworthiness, financial standing and business history; and (ii)
make available to the Landlord, or its lawful representatives, such corporate
books and records of the Tenant for inspection at all reasonable times
necessary, to ascertain whether there has been any change in control of the
Tenant.

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<PAGE>

     (c) However, this Section 10.3 shall not apply to the Tenant if the Tenant
is a public corporation whose shares are traded and listed on any recognized
stock exchange in Canada or the United States, and so long as the Landlord
receives assurances satisfactory to the Landlord that there will be a continuity
of management, of the Tenant, and of its business practices and policies,
notwithstanding any such Transfer pursuant to Section 10.3(a).

Section 10.4 Assignment by the Landlord

     If there is a sale, lease or other disposition by the Landlord of the
Building and the Lands, or any part thereof, or the assignment by the Landlord
of this Lease or any interest of the Landlord hereunder, and to the extent that
the purchaser or assignee thereof assumes the covenants and obligations of the
Landlord hereunder, the Landlord will, thereupon and without further agreement,
be relieved of all liability with respect to its covenants and obligations.

                                   ARTICLE 11

                             Access and Alterations

Section 11.1      Right of Entry

     (a) The Landlord and its agents have the right to enter the Leased Premises
at all reasonable times (except in the event of an emergency, when the Landlord
can enter at any time) to show them to prospective purchasers, lessees (during
the last six (6) months of the Term or any renewal) or mortgagees, and to
examine the Leased Premises and to make repairs, alterations or changes to the
Leased Premises or the Building, or any part thereof, as the Landlord considers
necessary including, without limitation, the pipes, conduits, wiring, ducts and
other installations of any kind in the Leased Premises where necessary to serve
another part of the Building. ALTERATIONS AND CHANGES TO BE MADE AT THE
LANDLORD'S SOLE EXPENSE. For this purpose, the Landlord may take all required
material into and upon the Leased Premises and may have access to the underfloor
ducts and access panels to mechanical shafts and the Landlord has the right to
check, calibrate, adjust and balance controls and other parts of the heating,
ventilating, air-conditioning and climate control systems. The Rent will not
abate or be reduced while any such repairs, alterations or changes are being
made due to loss or interruption of business of the Tenant or otherwise, and the
Landlord will not be liable for any damage, injury or death caused to any
Person, or to the property of the Tenant or of others located on the Leased
Premises as a result of such entry. The Tenant shall not unduly obstruct any
such pipes, conduits, ducts or mechanical shafts so as to prevent reasonable
access thereto.

     (b) If the Tenant is not present to open and permit an entry into the
Leased Premises, at the time that an entry is necessary or permissible, the
Landlord or its agents may, in the case of an emergency, real or reasonably
apprehended, forcibly enter the Leased Premises, without rendering the Landlord
or such agents liable therefor, and without in any manner affecting the
obligations and covenants of this Lease. Nothing herein contained, however, is
deemed or construed to impose upon the Landlord any obligation, responsibility
or liability whatsoever for the care, maintenance or repair of the Leased
Premises, or any part thereof, except as otherwise herein specifically provided.

                                       29
<PAGE>

                                   ARTICLE 12

                 Status Statement, Attornment and Subordination

Section 12.1 Status Statement

     Within ten (10) days after written request by the Landlord, the Tenant will
deliver in a form supplied by the Landlord, a status statement or a certificate
(which will be certified by the Tenant to be accurate) to any proposed
purchaser, assignee, lessor or mortgagee, or to the Landlord, stating (if such
is the case),

     (a)  that this Lease is unmodified and in full force and effect (or if
there have been modifications, that this Lease is in full force and effect as
modified and identifying the modification agreements) or if this Lease is not in
full force and effect, the certificate shall so state;

     (b)  the Commencement Date;

     (c)  the date to which Basic Rent and Additional Rent have been paid under
this Lease;

     (d)  whether or not there is any existing default by the Tenant in the
payment of any Rent under this Lease, and whether or not there is any other
existing or alleged default by either party under this Lease with respect to
which a notice of default has been served and if there is any such default,
specifying the nature and "extent thereof.

     (e)  where there are any defences or counter-claims against enforcement of
the obligations to be performed by the Tenant under this Lease; and,

     (f)  with reasonable particularity, details respecting the Tenant's and any
Indemnifier's financial standing and corporate organization.

Section 12.2 Subordination and Attornment

     (a)  This Lease and the rights of the Tenant hereunder are, and will at all
times be, subject and subordinate to any and all ground or underlying leases,
mortgages, trust deeds, financing, refinancing or collateral financing and the
instruments, as well as the charge or lien resulting from, all or any of the
foregoing, and any renewals or extensions from time to time (collectively, the
"Encumbrances"). Upon request, the Tenant will subordinate this Lease and all of
its rights hereunder in such form as the Landlord requires to any Encumbrance
and, if requested, the Tenant will attorn to the holder of any such Encumbrance
(the "Encumbrancer"). THE LANDLORD AGREES TO USE REASONABLE EFFORTS TO OBTAIN
NONDISTURBANCE AGREEMENTS FROM ALL MORTGAGEES.

     (b)  The Tenant will, if possession is taken under, or any proceedings are
brought for possession under or the foreclosure of, or in the event of the
exercise of the power of

                                       30
<PAGE>

sale under, any Encumbrance, attorn to the Encumbrancer or the purchaser upon
any such foreclosure, sale or other proceeding and recognize the Encumbrancer or
purchaser as the Landlord under this Lease.

Section 12.3 Attorney

     The Tenant will, upon request of the Landlord or any Encumbrancer, execute
and deliver promptly all statements, instruments and certificates to carry out
the intent of Sections 12.1 and 12.2. If ten (10) days after the date of the
request by the Landlord, the Tenant has not executed the same, the Tenant
irrevocably appoints the Landlord as the Tenant's attorney with full power and
authority to execute and deliver in the name of the Tenant any such statements,
instruments or certificates.

Section 12.4 Financial Information

     The Tenant will, upon request, provide the Landlord with such information
as to the Tenant's or any Indemnifier's financial standing and corporate
organization as the Landlord or the Mortgagee reasonably requires.

                                   ARTICLE 13

                                     Default

Section 13.1 Right to Re-enter

     If and whenever:

     (a)  the Tenant fails to pay any Rent or other sum due hereunder on the day
or dates appointed for the payment (provided the Landlord first gives five (5)
days' written notice to the Tenant of any such failure); or

     (b)  the Tenant fails to observe or perform any other of the terms,
covenants or conditions of this Lease to be observed or performed by the Tenant
(other than the terms, covenants or conditions set out below in subparagraphs
(c) to (k), inclusive, for which no notice shall be required) provided the
Landlord first gives the Tenant ten (10) days', or such shorter period of time
as is otherwise provided in this Lease, written notice of any such failure to
perform and the Tenant within such period of ten (10) days fails to commence
diligently and thereafter to proceed diligently to cure any such failure to
perform; or

     (c)  the Tenant or any Indemnifier becomes bankrupt or insolvent or takes
the benefit of any act now or hereafter in force for bankrupt or insolvent
debtors or files any proposal or makes any assignment for the benefit of
creditors or any arrangement or compromise; or

     (d)  a receiver or a receiver-manager is appointed for all or a portion of
the Tenant's or Indemnifier's property; or

                                       31
<PAGE>

     (e)  any steps are taken or any action or proceedings are instituted by the
Tenant or by any other Person for the dissolution, winding-up or liquidation of
the Tenant or its assets; or

     (f)  the Tenant makes a sale in bulk of any of its assets, wherever
situated, (other than a bulk sale to a permitted Transferee in compliance with
the Bulk Sales Act (Ontario));

     (g)  the Tenant abandons or attempts to abandon the Leased Premises, or
sells or disposes of the trade fixtures, goods or chattels of the Tenant or
removes them from the Leased Premises so that there would not in the event of
such sale or disposal be sufficient trade fixtures, goods or chattels of the
Tenant on the Leased Premises subject to distress to satisfy all Rent due or
accruing hereunder for a period of at least six (6) months; or

     (h)  the Leased Premises become and remain vacant for a period of five
(5) consecutive days or are used by any Persons other than such as are entitled
to use them; or

     (i)  the Tenant effects or permits a Transfer without the Landlord's
consent; or

     (j)  this Lease or any of the Tenant's assets are taken under any writ of
execution; or

     (k)  re-entry is permitted under any other terms of this Lease,

then the Landlord, in addition to any other rights or remedies it has pursuant
to this Lease or by law, has the immediate right of re-entry upon the Leased
Premises and it may repossess the Leased Premises and enjoy them as of its
former estate and may expel all Persons and remove all property from the Leased
Premises and such property may be removed and sold or disposed of by the
Landlord as it deems advisable or may be stored in a public warehouse or
elsewhere at the cost and for the account of the Tenant, all without service of
notice or resort to legal process and without the Landlord being considered
guilty of trespass or becoming liable for any loss or damage which may be
occasioned thereby.

Section 13.2 Right to Relet

     (a)  If the Landlord elects to re-enter the Leased Premises or if it takes
possession pursuant to legal proceedings or pursuant to any notice provided for
by law, it may either terminate this Lease or it may from time to time without
terminating this Lease, make any alterations and repairs as are necessary in
order to relet the Leased Premises, or any part thereof, for such term or terms
(which may be for a term extending beyond the Term) and at such rent and upon
such other terms, covenants and conditions as the Landlord in its sole
discretion considers advisable. Upon each reletting all Rent received by the
Landlord will be applied, first to the payment of any indebtedness other than
Rent due hereunder from the Tenant to the Landlord; second, to the payment of
any costs and expenses of reletting, including brokerage fees and solicitor's
fees and the costs of alterations and repairs; third, to the payment of Rent due
and unpaid hereunder; and the residue, if any, will be held by the Landlord and
applied in payment of

                                       32
<PAGE>

future Rent as the same becomes due and payable hereunder. If the rent received
from such reletting during any month is less than that payable by the Tenant
under the terms of this Lease, the Tenant will pay any such deficiency in
advance on the first day of each month. No re-entry or taking possession of the
Leased Premises by the Landlord will be construed as an election on its part to
terminate this Lease unless a written notice of such intention is given to the
Tenant. Notwithstanding any reletting without termination the Landlord may at
any time thereafter elect to terminate this Lease for the previous breach.

     (b)  If the Landlord terminates this Lease, in addition to any other
remedies it may have, the Landlord may recover from the Tenant all damages it
incurs by reason of the Tenant's breach, including the cost of recovering the
Leased Premises, solicitor's fees (on a solicitor and his client basis) and
including the worth at the time of such termination of the excess, if any, of
the amount of Basic Rent, Additional Rent and other charges required to be paid
pursuant to this Lease for the remainder of the stated Term over the then
reasonable rental value of the Leased Premises for the remainder of the stated
Term, all of which amounts shall be immediately due and payable by the Tenant to
the Landlord. In any of the events referred to in Section 13.1, in addition to
all other rights, including the rights referred to in this Section and in
Section 13.1, the full amount of the current month's installment of Basic Rent
and all Additional Rent payments for the current month and any other payments
required to be made monthly hereunder, together with the next three (3) months'
installments of Basic Rent and all Additional Rent and such other payments for
the next three (3) months, all of which will be deemed to be accruing due on a
day-to-day basis, will immediately become due and payable as accelerated rent,
and the Landlord may immediately distrain for the same, together with any
arrears then unpaid.

Section 13.3 Expenses

     If legal action is brought for recovery of possession of the Leased
Premises, for the recovery of Basic Rent and Additional Rent or any other amount
due under this Lease, or because of the breach of any other of the Tenant's
obligations, the Tenant will pay to the Landlord all expenses incurred therefor,
including a solicitor's fee (on a solicitor and his client basis), unless a
court otherwise awards.

Section 13.4 Waiver of Exemption from Distress

     The Tenant agrees that notwithstanding anything contained in Section 30 of
the Landlord and Tenant Act (Ontario) or any statute or provision subsequently
passed to take the place of or amend the Act, none of the goods and chattels of
the Tenant which are on, or have at any time been on, the Leased Premises will
be exempt from levy by distress for Rent in arrears by the Tenant.

Section 13.5 Landlord May Cure the Tenant's Default or Perform the Tenant's
             Covenants

     If the Tenant fails to pay when due any Rent which is payable to third
parties, the Landlord, after giving five (5) days' notice in writing to the
Tenant, may, but shall not be obligated to, pay all or any part of the Rent. If
the Tenant is in default in the performance of any

                                       33
<PAGE>

of its other covenants or obligations under this Lease (other than the payment
of Rent) the Landlord may, but shall not be obligated to, after giving such
notice as it considers sufficient (or without notice in the case of an
emergency) perform or cause to be performed any of such covenants or
obligations, and for such purpose may do such things as may be required
including, without limitation, entering upon the Leased Premises and doing all
things upon or in respect of the Leased Premises as the Landlord reasonably
considers necessary. All expenses incurred and expenditures made by the Landlord
plus a sum equal to fifteen percent (15%) thereof representing the Landlord's
overhead shall be paid by the Tenant as Additional Rent within five (5) days
after demand. The Landlord will have no liability to the Tenant for any loss or
damages resulting from any such entry by the Landlord upon the Leased Premises
pursuant to this Section 13.5.

Section 13.6 Additional Rent

     If the Tenant is in default in the payment of any amounts or charges
required to be paid pursuant to this Lease, they shall, if not paid when due, be
collectible as Additional Rent within five (5) days after demand, but nothing
herein contained is deemed to suspend or delay the payment of any amount of
money at the time it becomes due and payable hereunder, or limit any other
remedy of the Landlord. The Landlord may, at its option, apply or allocate any
sums received from or due to the Tenant against any amounts due and payable
under this Lease in any manner as the Landlord deems advisable.

                                   ARTICLE 14

                                  Miscellaneous

Section 14.1 Rules and Regulations

     The Rules and Regulations adopted and promulgated by the Landlord from time
to time including, without limitation, those set out in Schedule "E" attached,
are made a part of this Lease as if they were embodied herein, and the Tenant
will comply with and observe all Rules and Regulations as though they were
covenants. The Rules and Regulations may differentiate between different types
of businesses in the Building, but the Rules and Regulations will be adopted and
promulgated by the Landlord acting reasonably and in such manner as would a
prudent landlord of a reasonably similar office building. The Tenant's failure
to keep and observe the Rules and Regulations constitutes a default under this
Lease. The Landlord reserves the right from time to time to amend or supplement
the Rules and Regulations applicable to the Leased Premises or the Building as
in the Landlord's judgment are from time to time needed for the safety, care,
cleanliness and more efficient operation of the Building. Notice of the Rules
and Regulations and amendments and supplements, if any, will be given to the
Tenant and the Tenant will thereupon comply with and observe all such Rules and
Regulations, provided that no Rules and Regulations will contradict any
provisions of this Lease. The Landlord agrees to make reasonable efforts but is
not under any obligation to enforce the Rules and Regulations against other
tenants in the Building and is not responsible to the Tenant for the
non-observance of any Rules or Regulations by any of the other tenants in the
Building.

                                       34
<PAGE>

Section 14.2 Intent and Interpretation

     (a)  Net Lease

     The Tenant acknowledges that it is intended that this Lease is a completely
carefree net lease to the Landlord, except as expressly herein set out, that the
Landlord is not responsible during the Term for any costs, charges, expenses and
outlays of any nature whatsoever arising from or relating to the Leased
Premises, or the use and occupancy thereof, and the Tenant will pay all charges,
impositions, costs and expenses of every nature and kind relating to the Leased
Premises, except as expressly herein set out.

     (b)  Obligations as Covenants

     Each obligation or agreement of the Landlord or the Tenant expressed in
this Lease, even though not expressed as a covenant, is considered to be a
covenant for all purposes.

     (c)  Captions and Section Numbers

     The captions, section numbers, article numbers, and Table of Contents
appearing in this Lease are inserted only as a matter of convenience and in no
way define, limit, construe or describe the scope or intent of such sections or
articles of this Lease nor in any way affect this Lease.

     (d)  Extended Meanings

     The words "hereof", "herein", "hereunder" and similar expressions used in
any Section or subsection of this lease relate to the whole of this Lease and
not to that Section or subsection only, unless otherwise expressly provided. The
use of the neuter singular pronoun to refer to the Landlord or the Tenant is
deemed a proper reference even though the Landlord or the Tenant is an
individual, a partnership, a corporation or a group of two or more individuals,
partnerships or corporations. The necessary grammatical changes required to make
the provisions of this Lease apply in the plural sense where there is more than
one Landlord or Tenant and to either corporations, associations, partnerships,
or individuals, males or females, shall in all instances be assumed as though in
each case fully expressed.

     (e)  Partial Invalidity

     If any term, covenant or condition of this Lease, or the application
thereof to any Person or circumstance, is to any extent held or rendered
invalid, unenforceable or illegal, then such term, covenant or condition:

          (i)  is deemed to be independent of the remainder of the Lease and to
be severable and divisible therefrom, and its invalidity, unenforceability or
illegality does not affect, impair or invalidate the remainder of the Lease or
any part thereof; and

                                       35
<PAGE>

          (ii) continues to be applicable to and enforceable to the fullest
extent permitted by law against any Person and circumstances other than those as
to which it has been held or rendered invalid, unenforceable or illegal.

     Neither party is obliged to enforce any term, covenant or condition of this
Lease against any Person, if, or to the extent by so doing, such party is caused
to be in breach of any laws, rules, regulations or enactments from time to time
in force.

     (f)  Entire Agreement

     This Lease and the Schedules and Riders, if any, attached, together with
the Rules and Regulations, set forth all the covenants, promises, agreements,
conditions and understandings between the Landlord and the Tenant concerning the
Leased Premises and there are no other covenants, promises, agreements,
conditions or understandings, either oral or written, between them. No
alteration, amendment or addition to this Lease will be binding upon the
Landlord or the Tenant unless in writing and signed by the Tenant and the
Landlord.

     (g)  Governing Law

     This Lease will be construed in accordance with and governed by the laws of
the Province of Ontario.

     (h)  Time of the Essence

     Time is of the essence of this Lease and of every part hereof.

Section 14.3 Overholding - No Tacit Renewal

     If the Tenant remains in possession of the Leased Premises after the end of
the Term without having executed and delivered a new lease or an extension
agreement, there is no tacit renewal of this Lease, notwithstanding any
statutory provisions or legal presumption to the contrary, and the Tenant will
be deemed to be occupying the Leased Premises as a tenant from month to month at
a monthly Basic Rent equal to twice the monthly amount of Basic Rent for the
last month of the Term calculated in accordance with Section 1.1(d) and
otherwise, upon the same terms, covenants and conditions as are set forth in
this Lease (including the payment of all Additional Rent), so far as these are
applicable to a monthly tenancy.

Section 14.4 Successors

     All rights and liabilities under this Lease extend to and bind the
successors and assigns of the Landlord and the heirs, executors, administrators
and permitted successors and assigns of the Tenant. as the case may be. No
rights, however, will enure to the benefit of any Transferee of the Tenant
unless the Transfer has been consented to by the Landlord in writing as provided
in Section 10.1. If there is more than one Tenant, they are all bound jointly
and severally by the terms, covenants and conditions of this Lease.

                                       36
<PAGE>

Section 14.5 Tenant Partnership

     If the Tenant is a partnership (the "Tenant Partnership") each Person who
is presently a member of the Tenant Partnership, and each Person who becomes a
member of any successor Tenant Partnership will be and continue to be liable
jointly and severally for the full and complete performance of, and will be and
continue to be subject to, the terms, covenants and conditions of this Lease,
whether or not such Person ceases to be a member of such Tenant Partnership or
successor Tenant Partnership.

Section 14.6 Waiver

     The waiver by the Landlord of any breach of any term, covenant or condition
contained in this Lease is not deemed to be a waiver of such term, covenant or
condition or of any subsequent breach of the same or of any other term, covenant
or condition contained in this Lease. The subsequent acceptance of Rent by the
Landlord is not deemed to be a waiver of any preceding breach by the Tenant of
any term, covenant or condition of this Lease. regardless of the Landlord's
knowledge of such preceding breach at the time of acceptance of Rent. No term,
covenant or condition of this Lease is deemed to have been waived by the
Landlord unless such waiver is in writing by the Landlord.

     All Basic Rent and Additional Rent to be paid by the Tenant to the Landlord
will be paid without any deduction, abatement, set-off or compensation
whatsoever (except for the Basic Rent to the extent it may be abated pursuant to
Section 9.1), and the Tenant hereby waives the benefit of any statutory or other
rights in respect of abatement, set-off or compensation in its favour at the
time hereof or at any future time.

Section 14.7 Accord and Satisfaction

     No payment by the Tenant or receipt by the Landlord of a lesser amount than
the monthly payment of Basic Rent or Additional Rent herein stipulated is deemed
to be other than on account of the earliest stipulated Basic Rent or Additional
Rent, nor is any endorsement or statement on any cheque or any letter
accompanying any cheque or payment of Rent deemed an acknowledgment of full
payment or accord and satisfaction, and the Landlord may accept and cash any
cheque or payment without prejudice to the Landlord's right to recover the
balance of the Rent due or pursue any other remedy provided in this Lease.

Section 14.8 No Partnership or Agency

     The Landlord does not in any way or for any purpose become a partner of the
Tenant in the conduct of its business, or otherwise, or a joint venturer or a
member of a joint enterprise with the Tenant, nor is the relationship of
principal and agent created.

Section 14.9 Force Majeure

     Notwithstanding anything in this Lease, if either party is bona fide
delayed or hindered in or prevented from the performance of any term, covenant
or act required hereunder

                                       37
<PAGE>

by reason of strikes, labour troubles; inability to procure materials or
services; power failure; restrictive governmental laws or regulations; riots;
insurrection; sabotage; rebellion; war; act of God; or other reason whether of a
like nature or not which is not the fault of the party delayed in performing
work or doing acts required under the terms of this Lease, then the performance
of that term, covenant or act is excused for the period of the delay and the
party delayed will be entitled to perform such term, covenant or act within the
appropriate time period after the expiration of the period of such delay.
However, the provisions of this Section do not operate to excuse the Tenant from
the prompt payment of Rent.

Section 14.10 Notices

     Any notice, demand, request or other instrument which may be or is required
to be given under this Lease will be delivered in person or sent by registered
mail postage prepaid and will be addressed (a) if to the Landlord, to c/o the
address specified in Paragraph (h) of the Special Provisions, or to such other
Person or at such other address as the Landlord designates by written notice,
and (b) if to the Tenant, at the Leased Premises or, at the Landlord's option,
to the Tenant's office at the address specified in Paragraph (i) of the Special
Provisions. Any notice, demand, request or consent is conclusively deemed to
have been given or made on the day upon which it is delivered, or, if mailed,
then seventy-two (72) hours following the date of mailing, as the case may be.
Either party may at any time give written notice to the other of any change of
its address and thereafter the new address is deemed to be the address of that
party for the giving of notices hereunder. If the postal service is interrupted
or is substantially delayed, any notice, demand, request or other instrument
will be delivered in person.

Section 14.11 No Option

     The submission of this Lease for examination does not constitute a
reservation of or option to lease, for the Leased Premises and this Lease
becomes effective as a lease only upon its execution and delivery by the
Landlord and the Tenant.

Section 14.12 Registration

     Neither the Tenant, nor any one on the Tenant's behalf or claiming under
the Tenant, will register this Lease or any assignment or sublease of this Lease
or any document evidencing any interest of the Tenant in the Lease or the Leased
Premises, against the Lands (or any part thereof) comprising the Building or the
Leased Premises. If either party intends to register a document for the purpose
only of giving notice of this Lease or of any assignment or sublease of this
Lease, then, upon the request of either party, the other will join in the
execution of a short form or notice of this Lease (the "Short Form") which will
(i) be prepared by the Landlord or its solicitors at the Tenant's expense; (ii)
only describe the parties, the Leased Premises and the Commencement Date and the
expiration date of the Term; and (iii) at the Landlord's option, be accompanied
by a registrable power of attorney whereby the Tenant appoints the Landlord as
its attorney to execute any instruments required under Article XII. All costs,
expenses and taxes necessary to register or file the Short Form will be the sole
responsibility of the Tenant.

                                       38
<PAGE>

Section 14.13 Directory Board

     The Tenant will be entitled at Landlord's expense to have its name shown
upon the directory board of the Building. The Landlord will design the style of
such identification and the directory board will be located in an area
designated by the Landlord in the main lobby of the Building.

Section 14.14 Accrual of Basic Rent and Additional Rent

     Basic Rent and Additional Rent will be considered as annual and accruing
from day to day and where it becomes necessary for any reason to calculate Rent
for an irregular period of less than one (1) year, an appropriate apportionment
and adjustment shall be made.

Section 14.15 Compliance with the Planning Act

     It is a condition of this Lease that the subdivision control provisions of
the Planning Act (Ontario), and amendments thereto, be complied with if they
apply. If the provisions of the Planning Act do apply, then until any necessary
consent to the Lease is obtained, the Term (including any extensions thereof)
and the Tenant's rights and entitlement granted by this Lease are deemed to
extend for a period not exceeding twenty-one (21) years less one (l) day from
the Commencement Date.

Section 14.16 Survival of Covenants

     The Tenant's obligation to observe and perform its covenants and agreements
under this Lease, including without limitation, any obligations on its behalf
(i) to make any necessary re-adjustments on account of Rent, or (ii) to repair
the Leased Premises or remove its trade fixtures and leasehold improvements as
required by the Landlord, will survive the expiration of the Term or earlier
termination of this Lease.

Section 14.17 Quiet Enjoyment

     If the Tenant pays the Rent and observes and performs its terms, covenants
and conditions contained in this Lease, the Tenant will peaceably and quietly
hold and enjoy the Leased Premises for the Term without hindrance or
interruption by the Landlord, or any other Person lawfully claiming by, through
or under the Landlord unless otherwise permitted by the terms of this Lease. The
Tenant acknowledges that the exercise by the Landlord of any of the rights
conferred on the Landlord under this Lease and the entry upon the Leased
Premises for or in connection with such purposes will not be deemed to be a
constructive or actual eviction of the Tenant and will not be considered to be a
breach of the Landlord's covenant for quiet enjoyment.

                                       39
<PAGE>

     IN WITNESS WHEREOF, the Landlord and the Tenant have signed and sealed this
Lease.

SIGNED, SEALED AND DELIVERED        )        20 ADELAIDE ST. EAST,
         in the presence of:        )        A CO-OWNERSHIP
                                    )                              (Landlord)
                                    )
                                    )
                                    )        Per:
                                    )           -----------------------------
                                    )        Per:
                                    )           -----------------------------
                                    )
                                    )        PARAGON MANAGEMENT SYSTEMS
                                    )        (CANADA) INC.
                                    )
                                    )                              (Tenant)
                                    )
                                    )
                                    )        Per:
                                    )           -----------------------------
                                    )        Per:
                                    )           -----------------------------
                                    )
                                    )        I/We have the authority to bind the
                                    )        Corporation.

                                       40

<PAGE>

                                  SCHEDULE "A"

                           TENANT:     PARAGON MANAGEMENT SYSTEMS (CANADA) INC.
                           FLOOR NO.:  8TH FLOOR
                           DATE:       AUGUST 30, 1999

                         LEGAL DESCRIPTION OF THE LANDS

     In the City of Toronto, in the Municipality of Metropolitan Toronto and
Province of Ontario, being composed of Part of Town Lot 1 on the north side of
Newgate Street, now Adelaide Street East and part of Old Toronto Street, closed
by Act of Parliament in 1810, according to the Town of York Plan registered in
the Land Registry Office for the Registry Division of Toronto (No. 63), the said
parcel of land being designated as Part 1 on a Plan of Survey deposited in the
said Land Registry Office as 63R-3209.

     The northerly limit of Adelaide Street East as confirmed under the
Boundaries Act by Plan BA-789 registered on December 30, 1975 as Instrument No.
CT 157878.

     The westerly limit of Victoria Street as confirmed under the Boundaries Act
by Plan BA-2189 registered on April 26, 1985.

     Together with the easement over Part 2 on the said Reference Plan 63R-3209
as set out in Instrument No. CT 736794.

                                       41
<PAGE>

                                  SCHEDULE "B"

                           TENANT:      PARAGON MANAGEMENT SYSTEMS (CANADA) INC.
                           FLOOR NO.:   8TH FLOOR
                           DATE:        AUGUST 30, 1999

                      PLAN OF THE 8TH FLOOR OF THE BUILDING

                                 [MAP GOES HERE]

                                       42
<PAGE>

                                  SCHEDULE "C"

                           TENANT:      PARAGON MANAGEMENT SYSTEMS (CANADA) INC.
                           FLOOR NO.:   8TH FLOOR
                           DATE:        AUGUST 30, 1999

               CONSTUCTION OF THE BUILDING AND THE LEASED PREMISES

                              INTENTIONALLY DELETED

                                       43

<PAGE>

                                  SCHEDULE "D"

                           TENANT:      PARAGON MANAGEMENT SYSTEMS (CANADA) INC.
                           FLOOR NO.:   8TH FLOOR
                           DATE:        AUGUST 30, 1999

                              INTENTIONALLY DELETED

                                       44

<PAGE>

                                  SCHEDULE "E"

                           TENANT:     PARAGON MANAGEMENT SYSTEMS (CANADA) INC.
                           FLOOR NO.:  8TH FLOOR
                           DATE:       AUGUST 30, 1999

                              RULES AND REGULATIONS

     1.   The Tenant will not place or permit any debris, garbage, trash or
refuse to be placed or left in or upon any part of the Building outside of the
Leased Premises.

     2.   The Landlord will permit the Tenant and the Tenant's employees and all
Persons lawfully requiring communication with them to have the use during Normal
Business Hours in common with others entitled thereto of the main entrance and
the stairways, corridors, elevators or other mechanical means of access leading
to the Leased Premises, together with the Common Areas and Facilities located on
the Tenant's floor of the Building. At times other than during Normal Business
Hours the Tenant and its employees will have access to the Building and to the
Leased Premises only in accordance with the Rules and Regulations and will be
required to satisfactorily identify themselves and to register in any book which
may at the Landlord's option be kept by the Landlord for such purpose. If
identification is not satisfactory, the Landlord is entitled to prevent the
Tenant or the Tenant's employees or other Persons lawfully requiring
communication with the Tenant from having access to the Building. In addition,
the Landlord is not required to open the door to the Leased Premises for the
purpose of permitting entry therein to any Person not having a key to the Leased
Premises.

     3.   The Landlord will permit the Tenant and its employees in common with
others entitled thereto, to use the washrooms on the Tenant's floor of the
Building or, in lieu thereof, those washrooms designated by the Landlord.

     4.   The Tenant will permit window cleaners to clean the windows of the
Leased Premises during Normal Business Hours.

     5.   The sidewalks, entrances, passages, escalators, elevators and
staircases will not be obstructed or used by the Tenant, its agents, servants,
contractors, invitees or employees for any purpose other than ingress to and
egress from the Leased Premises and the Building. The Landlord reserves the
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, entrances, corridors and passages not within the Leased Premises,
washrooms, lavatories, air-conditioning closets, fan rooms, janitor's closets,
electrical closets and other closets, stairs, escalators, elevator shafts,
flues, stacks, pipe shafts and ducts and will have the right to place such signs
and appliances therein, as it deems advisable, provided that ingress to and
egress from the Leased Premises is not unduly impaired thereby.

                                       45
<PAGE>

     6.   The Tenant, its agents, servants, contractors, invitees or employees,
will not bring in or take out, position, construct, install or move any safe or
other heavy machinery or equipment or anything liable to injure or destroy any
part of the Building, including the Leased Premises, without first obtaining the
written consent of the Landlord. The Landlord will have the right to prescribe
the weight permitted and the position thereof, and the use and design of planks,
skids or platforms, to distribute the weight. All damage done to any part of the
Building by moving or using any such heavy equipment or other office equipment
or furniture will be repaired at the expense of the Tenant. The moving of all
heavy equipment or other office equipment or furniture will occur only by prior
arrangement with the Landlord. The Tenant will not employ anyone to do its
moving in the Building, including the Leased Premises, other than the staff of
the Building, unless permission to employ anyone else is given by the Landlord
and the reasonable cost of such moving will be paid by the Tenant. Safes and
other heavy office equipment and machinery will be moved through the halls and
corridors only upon steel bearing plates. No freight or bulky matter of any
description will be received into the Building or carried in the elevators
except during hours approved by the Landlord acting reasonably.

     7.   The Tenant will 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 will be supplied to
the Landlord for each entrance door to the Leased Premises and all locks will be
standard to permit access by the Landlord's master key.

     8.   The water closets and other water apparatus will not be used for any
purpose other than those for which they were constructed. The Tenant will not
(1) let the water run unless it is in actual use, (2) deface or mark any part of
the Building, including the Leased Premises, (3) drive nails, spikes, hooks or
screws into the walls or woodwork of the Building, including the Leased
Premises, or (4) bore, drill or cut into the walls or woodwork of the Building
including the Leased Premises, in any manner or for any reason without Landlord
consent.

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

     10.  The Tenant will not permit any cooking or any heating of any foods or
liquid in the Leased Premises without the written consent of the Landlord.

     11.  Canvassing, soliciting and peddling in or about the Building are
prohibited.

     12.  No inflammable oils or other inflammable, dangerous or explosive
materials except those approved in writing by the Landlord's or its insurers
will be kept or permitted to be kept in the Leased Premises.

     13.  No bicycles or other vehicles will be brought within the Building
without the consent of the Landlord.

     14.  No animals or birds will be brought into the Building without the
consent of the Landlord.

                                       46
<PAGE>

     15.  The Tenant will not install or permit the installation or use of any
machine dispensing goods for sale in the Leased Premises or the Building or
permit the delivery of any food or beverage to the Leased Premises without the
approval of the Landlord.

     16.  No gas pipe or electric wire will be permitted which has not been
ordered or authorized by the Landlord. No outside radio or television aerials
shall be allowed on the Leased Premises without authorization in writing by the
Landlord.

     17.  The Tenant will not cover or obstruct any of the skylights and windows
that reflect or admit light into any part of the Building, except for the proper
use of approved blinds and drapes.

     18.  Any hand trucks, carryalls, or similar appliances used in the Building
with the consent of the Landlord, will be equipped with rubber tires, slide
guards and such other safeguards as the Landlord requires.

     19.  The Tenant will not permit or allow any odours, vapours, steam, water,
vibrations, noises or other undesirable effects to emanate from the Leased
Premises or any equipment or installation therein which in the Landlord's
opinion, are objectionable or cause any interference with the safety, comfort or
convenience of the Building by the Landlord or the occupants and tenants thereof
or their agents, servants, invitees or employees.

     20.  The Tenant will not receive or ship articles of any kind except
through facilities and designated doors and at hours designated by the Landlord
acting reasonably and under the supervision of the Landlord acting reasonably.

                                       47
<PAGE>

                                  SCHEDULE "F"

                           TENANT:     PARAGON MANAGEMENT SYSTEMS (CANADA) INC.
                           FLOOR NO.:  8TH FLOOR
                           DATE:       AUGUST 30, 1999

                                   DEFINITIONS

          In this Lease and in the Schedules;

     1.   "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 are 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.

     2.   "Advance Rent" means the amount payable by the Tenant pursuant to and
in the manner set out in Paragraph (e) of the Special Provisions.

     3.   "Architect" means the architect from time to time named by the
Landlord. The decision of the Architect whenever required by this Lease (or
requested by the Landlord) and any related certificate will be final and binding
on the parties.

     4.   "Basic Rent" means the annual rent payable by the Tenant pursuant to
and in the manner set out in Section 2.2 of this Lease.

     5.   "Building" means the multi-storey office building known municipally as
20 Adelaide Street East, Toronto, Ontario, including the Common Areas and
Facilities, and the areas and facilities serving the Building or having utility
in connection therewith as determined by the Landlord, whether or not located
directly under the Building.

     6.   "Business Day" means any of the days from Monday to Friday of each
week, and Saturday from 7:00 a.m. to 1:00 p.m. of each week, unless any of such
days is a statutory holiday.

     7.   "Commencement Date" means the date specified in Paragraph (c) of the
Special Provisions. If the Commencement Date is determined in accordance with
Paragraph (c)B(ii) of the Special Provisions, the Landlord shall determine the
actual Commencement Date and shall send a notice to the Tenant advising the
Tenant of the actual Commencement Date and such notice shall form a part of this
Lease.

     8.   "Common Areas and Facilities" means (a) those areas, facilities,
utilities, improvements, equipment and installations (collectively, the
"facilities") in the Building which, from time to time, are not designated or
intended by the Landlord to be leased to tenants of the Building and (b) those
facilities which serve or are for the benefit of the Building, whether or not
located within, adjacent to, or near the Building and which are designated from
time to time by

                                       48
<PAGE>

the Landlord as part of the Common Areas and Facilities. Common Areas and
Facilities includes, without limitation, the facilities which are provided or
designated (and which may be changed from time to time) by the Landlord for the
use or benefit of the tenants, their employees, customers and other invitees in
common with others entitled to the use or benefit thereof in the manner and for
the purposes permitted by the Lease.

          Without limiting the generality of the foregoing, Common Areas and
Facilities includes the roof, exterior wall assemblies (including weather
walls), exterior and interior structural elements and bearing walls; parking
areas (if any), all vestibules for and entrances and exits thereto and all
structural elements thereof; driveways, truckways and related areas; pedestrian
sidewalks; landscaped and planted areas; public seating and service areas;
corridors and underground or above ground tunnels or passageways; equipment,
furniture, furnishings and fixtures; stairways, escalators, ramps and elevators
and other transportation equipment and systems; tenant common and public
washrooms; telephone, meter, valve, mechanical, mail, storage, service and
janitor rooms and galleries; music, fire prevention, security and communication
systems; general signs; columns, pipes; electrical, plumbing, drainage,
mechanical, and all other installations, equipment or services located therein
or related thereto as well as the structures housing the same (including,
without limitation, the heating, ventilating and air-conditioning system of the
Building).

     9.   "C.P.I." means the Consumer Price Index (All Items for Regional
Cities) for the Municipality of Metropolitan Toronto (or any index published in
substitution for the Consumer Price Index or any other replacement index
reasonably designated by the Landlord if it is no longer published) published by
Statistics Canada (or by any successor thereof or any other governmental agency
including a provincial agency). In the case of any required substitution, the
Landlord shall be entitled to make all necessary conversions for comparison
purposes.

     10.  "Full Floor Rentable Area of the Leased Premises" means the area
expressed in square feet and in square metres set out in Paragraph (a) of the
Special Provisions and determined in accordance with the method of floor
measurement as set forth in Schedule "D" attached.

     11.  "Indemnifier' means the Person described in Paragraph (j) of the
Special Provisions who has executed or agreed to execute the Indemnity Agreement
which is attached to this Lease as Appendix "A", if applicable.

     12.  "Landlord" means the party of the First Part. Wherever the word
"Landlord" is used in this Lease, it is deemed to have the same meaning as
"lessor", and includes the Landlord and its duly authorized representatives.

     13.  "Lands" means the lands underneath, adjacent and appurtenant to the
Building, as more particularly described in Schedule "A" attached or as such
Lands may be altered, expanded or reduced from time to time.

     14.  "Leased Premises" means the premises leased to the Tenant as referred
to and described in Section 1.1 hereof.

                                       49
<PAGE>

     15.  "Mortgagee" means any mortgagee or chargee (including any trustee for
bondholders), from time to time, of the Building and the Lands, or any part
thereof, or the Landlord's or the owners of the Building's or the Land's
interest in them. The security documents held by the Mortgagee and any ground or
underlying leases affecting the Lands or the Building are referred to as
"Encumbrances", as more particularly defined in Section 12.2.

     16.  "Net Rentable Area of the Leased Premises" means the area expressed in
square feet and in square metres set out in Paragraph (a) of the Special
Provisions and determined in accordance with the method of floor measurements
set forth in Schedule "D" attached.

     17.  "Normal Business Hours" means the hours from 7:00 a.m. to 6:00 p.m. on
Mondays to Fridays and the hours from 7:00 a.m. to 1:00 p.m. on Saturdays,
unless any of such days is a statutory holiday.

     18.  (a) "Operating Costs" means the total amounts incurred, paid or
payable whether by the Landlord or by others on behalf of the Landlord for the
maintenance, insurance, operation, repair, replacement and administration of the
Building and the Lands, calculated as if the Building were fully leased,
occupied and operational during each Rental Year of the Term.

          (b)  Operating Costs include, without limitation and without
duplication, the aggregate of:

               (i)  the total annual costs and expenses (after deducting
recoveries from tenants, pursuant to clauses similar to Section 7.2 of the Lease
under leases for premises in the Building) of insuring the Lands, the Building
and the improvements and equipment and other property servicing the Building
from time to time, owned or operated by the Landlord or for which the Landlord
is legally liable, in accordance with Section 7.5;

               (ii) cleaning (including window cleaning), snow removal, garbage
and waste collection and disposal, including, without limitation, those costs
referred to in Section 4.2(c);

               (iii) the aggregate of the costs and amounts paid for (1) all
fuel used in heating, including the purchase of steam; (2) all electricity
furnished by the Landlord to the Building other than electricity exclusively
furnished to and paid for by tenants; (3) all hot and cold water other than that
chargeable to tenants by reason of their extraordinary consumption of water; (4)
climate control; (5) telephone and other utility costs, used in the maintenance
and operation of the Building; and (6) installing and maintaining energy
conservation equipment and safety or life support systems in any portion of the
Building;

               (iv) the costs of policing, security and supervision, including
all rental and other costs incurred in respect of the management office for the
Building;

               (v)  salaries, wages and other amounts paid or payable for all
personnel including the Building manager, superintendent, operating and
maintenance staff, end other employees of the Landlord involved in the
maintenance and operation of the Building and the

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<PAGE>

Lands, including contributions and premiums towards reasonable fringe benefits,
unemployment and Workmen's Compensation insurance, pension plan contributions
and similar premiums and contributions and the total charges of any independent
contractors or managers engaged in the repair, care, maintenance and cleaning of
the Building and any portion of the Lands;

               (vi) the cost of the rental of any equipment and signs, and the
cost of supplies, used by the Landlord in the maintenance and operation of the
Building and the Lands;

               (vii) heating, ventilating and air-conditioning of the Building,
including the individual premises;

               (viii) audit fees and the cost of accounting services incurred in
the preparation of the certificates referred to in this Lease and related
financial statements, and in the computation of the rents and charges payable by
tenants of the Building;

               (ix) all repairs (including major repairs) and replacements to
and maintenance (including, without limitation, gardening and landscaping
maintenance, repair and replacement) and operation of the Building, and the
systems, facilities and equipment serving the Building (including, without
limitation, all escalators, elevators, and other transportation equipment and
systems and the heating, ventilating, air-conditioning and climate control
systems serving the Building);

               (x)  depreciation or amortization of (1) the costs and expenses
including, without limitation, repair and replacement, of all maintenance and
cleaning equipment and master utility meters and all other fixtures, equipment
and facilities serving or comprising the Building (including, without
limitation, all supplies and inventory required for the maintenance, operation
and repair of the Building and the heating, ventilating, air conditioning and
climate control systems serving the Building) which by their nature, require
periodic or substantial repair or replacement, unless, pursuant to Paragraph
18(b)(ix), they are charged fully in the Rental Year in which they are incurred,
in accordance with sound accounting principles, and (2) the costs of
improvements properly charged to capital account which substantially reduce
Operating Costs, amortized over their useful life, as determined by the Landlord
in accordance with sound accounting principles;

               (xi) all Capital Taxes as defined in Paragraph 18(c) hereof as
they relate to or are attributed by the Landlord to the Building and the Lands;

               (xii) interest calculated at two (2) percentage points above the
average daily prime bank commercial lending rate charged during such Rental Year
by any Canadian chartered bank designated from time to time by the Landlord upon
the undepreciated portion of the original cost of all fixtures, equipment and
facilities referred to in Paragraph 18(b)(x);

               (xiii) a fee of five percent (5%) for the administration and
management of the Building and the Lands applied against the Rent payable to the
Landlord by tenants of the Building.

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<PAGE>

          From the total of the above costs, there is deducted:

          (aa) all net recoveries which reduce the Operating Costs received by
the Landlord from tenants as a result of any act, omission, default or
negligence of such tenants or by reason of a breach by such tenants of
provisions in their respective leases (other than recoveries from such tenants
under clauses in their respective leases requiring their contribution to
Operating Costs); and

          (bb) net proceeds received by the Landlord from insurance policies
taken out by the Landlord to the extent that such proceeds relate to the
Operating Costs.

          (c)  Capital Tax is an imputed amount presently or hereafter imposed
from time to time upon the Landlord or the owners of the Building and Lands and
payable by the Landlord or the owners of the Building and Lands (or by any
corporation acting on behalf of the Landlord or the owners) and which is levied
or assessed against the Landlord or the owners on account of its ownership of or
capital employed in the Building and the Lands. Capital Tax shall be imputed as
if the amount of such tax were that amount due if the Building and the Lands
were the only real property of the Landlord and Capital Tax includes the amount
of any capital or place of business tax levied by the provincial government or
other applicable taxing authority against the Landlord with respect to the
Building and the Lands whether or not known as Capital Tax or by any other name.

          (d)  The Tenant acknowledges that the Total Rentable Area of the
Building contains a retail commercial area on the ground floor of the Building
in addition to the office area of the Building. The Landlord, acting equitably,
may adjust the Operating Costs pursuant to this Paragraph in accordance with
reasonable and current practices relevant to a multi-use commercial building to
include a reasonable proportion of the expenses incurred by or on behalf of
retail and other tenants in the Building who, by agreement with the Landlord, or
otherwise, have undertaken cleaning, maintenance work or other outlays usually
performed by the Landlord to the extent that those expenses if directly carried
out by the Landlord would have been included in Operating Costs.

                                       52
<PAGE>

                                  SCHEDULE "G"

                           TENANT:     PARAGON MANAGEMENT SYSTEMS (CANADA) INC.
                           FLOOR NO.:  8TH FLOOR
                           DATE:       AUGUST 30, 1999

                              INTENTIONALLY DELETED

                                       53

<PAGE>

                                  SCHEDULE "H"

                           TENANT:      PARAGON MANAGEMENT SYSTEMS (CANADA) INC.
                           FLOOR NO.:   8TH FLOOR
                           DATE:        AUGUST 30, 1999

                          LANDLORD'S CLEANING SCHEDULE

ENTRANCE AND MAIN LOBBY

A.   NIGHTLY SERVICES

1.   Floors will be swept, washed and rinsed using a neutral detergent.

2.   Rubber matting and door rats will be thoroughly cleaned.

3.   Finger marks and smudges will be removed from walls where wall finishes
permit.

4.   Door glass will be cleaned on both sides and metal wiped clean.

5.   Directory Board will be cleaned.

6.   All horizontal surfaces within normal arm's reach will be dusted using a
traced cloth.

7.   Ashtrays and stands will be emptied and wiped clean.

B.   PERIODIC SERVICES

1.   Floors will be machine scrubbed weekly with a protective non-slip floor
finish applied for surface protection.

2.   All horizontal surfaces within normal arm's reach will be dusted monthly.

3.   Walls to be kept free of dust.

ELEVATORS

A.   NIGHTLY SERVICES

1.   Carpets in elevator cabs to be vacuumed and spot cleaned as required.

2.   Walls and metal work to be cleaned and polished.

                                       54
<PAGE>

3.   Elevator doors and frames on all floors to be kept clean and free of finger
marks and smudges.

4.   Two (2) sets of elevator carpets will be supplied for periodic changing.
The Landlord shall arrange for such changing and the cleaning of each set not
less than twice annually.

5.   Threshold plates on elevator cabs and elevator lobby floors to be cleaned
or vacuumed.

B.   PERIODIC SERVICES

1.   Floors under elevator carpets to be maintained in a clean condition and
detergent washed not less than twice annually.

ELEVATOR LOBBIES AND CORRIDORS

A.   NIGHTLY SERVICES

1.   Tile floors will be swept with a treated dust mop four (4) nights per week
and on the fifth night will be spray buffed on a rotational basis.

2.   All cigarette urns will be emptied and cleaned

3.   All horizontal ledges within normal arm's reach will be dusted using a
treated cloth.

4.   Drinking fountains will be cleaned and disinfected.

5.   All carpeted floors will be vacuumed.

B.   PERIODIC SERVICES

1.   Tile floors will be stripped and refinished as necessary to maintain a
clean condition and to protect the floor covering. Frequency of stripping will
vary according to traffic and soil conditions throughout the Building and shall
be not less than twice yearly.

2.   All baseboards, ledges or other surfaces not reached in nightly dusting
will be dusted not less than once per month using a treated cloth or other
suitable means.

COMMON STAIRS AND LANDINGS

A.   NIGHTLY SERVICES

1.   Landings will be swept.

2.   All doors to be kept free of finger marks and smudges and washed not less
than once per month or as necessary.

                                       55
<PAGE>

B.   PERIODIC SERVICES

1.   Handrails, stringers and riser under-sides and ledges where existing will
be dusted or vacuumed weekly.

2.   All baseboards, ledges or other surfaces will be dusted with a treated
cloth as necessary but not less than once per month.

3.   Stairs will be swept weekly for a three (3) week period. On the fourth
week, stairs and landings will be washed and rinsed.

JANITOR SERVICES ROOMS

1.   These rooms will be maintained in a clean and orderly manner at all times.

LEASED PREMISES

A.   NIGHTLY SERVICES (Monday to Friday, inclusive, unless any such day is a
holiday)

1.   All waste receptacles will be emptied and refuse removed in plastic garbage
bags or other suitable containers to a designated area in the Building for
disposal by others.

2.   Waste receptacles will be damp wiped and washed on a rotating basis but not
less than once every two (2) months.

3.   All ashtrays will be emptied and cleaned The contents of ashtrays will be
emptied into metal containers and left over night to ensure that any live
cigarettes are extinguished.

4.   The horizontal surfaces of fixture, fixtures, desk tops, table tops,
business equipment and other working surfaces will be dusted by means of a
treated feather type or similar hand duster four (4) nights per week and hand
dusted with a treated cloth duster on the fifth night.

5.   All other horizontal surfaces within normal arm's reach will be treated as
(4) on the previous page.

Floor Finishes

(a)  Tile Floors

     1.   All floors will be dusted with a treated dust mop.

                                       56
<PAGE>

(b)  Carpeted Floors

     1.   All carpeted or rug areas to have traffic isles vacuumed. The balance
of the area to receive a litter pick-up by vacuum or carpet sweeper four (4)
nights per week and on the fifth night all carpeted and/or rugged areas to be
thoroughly vacuumed.

     2.   All carpeted or rug areas to be spot cleaned provided such function
can be carried out by the use of damp sponge. Where special solutions or other
treatments are required, special spot cleaning will be for the Tenant's account.

B.   PERIODIC SERVICES

1.   Dusting of wall hangings such as pictures, graphs, etc., tops of doors,
high ledges above normal arm's reach to be dusted on a rotational basis, but not
less than once per month.

2.   Vertical surfaces, i.e. sides of desks, chairs, tables, filing cabinets and
business equipment to be dusted with a treated dust cloth on a rotational basis
but not less than once per month.

3.   All bright work including push plates, kick plates, and the like will be
cleaned as necessary, but no less than once per month.

4.   Finger marks will be removed from glass desk or table tops, door glass and
partition glass once per week.

5.   Finger marks or smudges will be removed from walls or other painted
surfaces once per week provided such surfaces lend themselves to this type of
cleaning.

6.   Venetian blinds will be dusted not less than once every three (3) months
using a feather type hand duster or other suitable means.

Floor Finishes

(a)  Tile Floors

     1.   Tile floors will be spray waxed and buffed every two (2) weeks.

     2.   Tile floors will be stripped and refinished as required to maintain a
clean condition and protect the tile finish. Frequency of stripping will vary
according to traffic and soil conditions in different tenant areas but shall be
done not less than twice per year.

(b)  Carpeted Floors

     1.   Shampooing and spot cleaning of carpeted and rug areas, other than as
specified under "Nightly Services", Carpeted Floors, item (2) will be as
requested by the Tenant for the Tenant's account and shall not form part of the
Landlord's obligations under this Schedule "H".

                                       57
<PAGE>

WASHROOMS STANDARD TO THE BUILDING

A.   NIGHTLY SERVICES

1.   Sweep and wash all floors using a disinfectant.

2.   Wash and polish all mirrors, powder shelves, bright work, i.e., faucets,
flushometers, toilet seat hinges.

3.   Wash and sanitize all basins, toilet bowls and urinals.

4.   Wash and disinfect both sides of all toilet seats.

5.   Dust tops of partitions and all other ledges within normal arm's reach.

6.   Empty and clean paper towel and sanitary disposal receptacles.

7.   Remove waste paper and refuse in plastic garbage bags or other suitable
containers to a designated area in the Building for disposal by others.

8.   Replenish all washroom supplies with materials supplied by the Landlord.

B.   PERIODIC SERVICES

1.   Partitions and tile walls to be cleaned and disinfected as required but not
less than once per month.

2.   Floors shall be machine scrubbed as required but not less than once every
three (3) months.

3.   Urinals shall be decalcified as required but not less than once per week.

                                       58

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