Document:

Demand Loan Financing Agreement

EXHIBIT 10.5

Demand Loan Financing Agreement

To: ROYAL BANK OF CANADA We hereby apply for the following Loan(s):

Demand Operating Loan

Maximum Amount: *$150,000.00

Revolvement Account # ____________

Minimum Retained Balance $-0-

Interest Rate: Royal Bank Prime plus 2% per annum payable on the 26th
day of each month.

Minimum Revolvement Amount: $5,000

*subject to the margin requirement

Fees

$10 per transaction to Revolve Demand Operating Loan

Business Loan Insurance Plan

Application for Creditor Life completed

Date: _____________

x declined Autofun Canada Inc.

Legal Name of Borrower

By: Karim Suleman

Margin Requirement

N/A

Reports to be provided by Borrower

Accountant Review Year End Statements 90 days after fiscal year end.

Required frequency: Annually

Security (*security to be obtained and registered prior to first advance)

	
    Bank Form #
	Description
	 	 
	
    924
	General Security Agreement
	
    812
	Guaranteed Postponement of Claim from Karim
    Suleman
	
    3460
	Waiver - Royal Bank Business Loan Insurance
    Plan

This Demand Loan Financing Agreement cancels and supercedes any and all
previous Demand Loan Financing Agreements. We agree that the Loans will be
subject to the Terms and Conditions on the reverse, which are incorporated into
and form part of this Agreement. We expressly acknowledge that the Loans will be
and remain repayable upon your demand at any time and that you may cancel any
undrawn portion of the Loans at any time without prior notice.

	 	Dated the 3rd day of February, 2000
	 	AUTOFUN CANADA INC.
	 	 
	 	By: /s/ Karim Suleman
	 	Name and Title of Authorized Signatory
	Accepted and agreed	 
	ROYAL BANK OF CANADA	 
	By: 	 

 

Terms and Conditions

Interest and Fees

Interest. We will pay interest on each Loan at the fluctuating annual
    rate specified with respect to that Loan. Interest will accrue daily on the
    basis of a year of 365 days and will be calculated, payable and compounded
    monthly in arrears on the day of the mouth specified. "Royal Bank Prime"
    means the annual rate of interest announced from time to time by you as a
    reference rate then in effect for determining interest rates on Canadian
    dollar commercial loans made in Canada. Any change in "Royal Bank Prime"
    will be effective as of the opening of business on the day such change takes
    place. Interest and fees are payable both before and after any or all of
    default, demand and judgment. In no event will interest and fees exceed the
    rate permitted by law.

  

Fees. We will pay you fees in the amounts and at the times specified.

Interest Act Disclosure. The annual rates of interest to which the rates
    calculated in accordance with this Agreement are equivalent, are the rates
    so calculated multiplied by the actual number of days in the calendar year
    and divided by 365.

  

Demand Operating Loans and Temporary Demand Operating Loans

The outstanding amount of a Demand Operating Loan or a Temporary Demand
    Operating Loan may revolve up to an amount equal to the lesser of the
    Maximum Amount specified and the amount calculated by you in accordance with
    the Margin Requirement, until the earlier of your demand for repayment or
    any Final Repayment Date specified with respect to such Loan. With respect
    to each Loan you are authorized (but not obliged):

    	(a)	
            whenever there is a credit balance in the Revolvement Account
            that exceeds the sum of the Minimum Retained Balance plus the
            Minimum Revolvement Amount, to apply all or any part of such credit
            balance as a repayment on account of the Loan, and

              
	(b)	whenever the balance in the Revolvement Account is less than the
            Minimum Retained Balance, to make an advance on account of the Loan
            in an amount which is equal to the Minimum Revolvement Amount.

        
      
    
    Unless you otherwise agree in writing with us, no interest will be
    payable at any time upon a credit balance in the Revolvement Account.

  

Demand Installment Loan(s)

General. A Demand Installment Loan will not revolve. We will draw down
    the Original Amount specified with respect to a Demand Installment Loan, or
    such lesser amount as you may in your sole discretion determine, as soon as
    you confirm that such amount is available.

    Installment Payments. With respect to any Demand Installment Loan, we
    will (unless and until you make demand for repayment) make the specified
    Installment Payments. If the Installment Payments are blended payments of
    principal and interest ("Blended Payments"), they will first be applied to
    interest due and the balance, if any, will be applied to the outstanding
    principal. If the amount of any Blended Payment is insufficient to pay all
    interest then due on a Demand Installment Loan, together with all
    outstanding principal over the Amortization Period specified, then the
    allotment of the Blended Payments will be increased to an amount specified
    by you for such purposes.

  

Evidence of Indebtedness

You will maintain accounts and records showing all advances by you in
    respect of each Loan, together with all accrued interest, and all payments
    of principal, interest and fees made by us. Such accounts and records will
    constitute, in the absence of manifest error, constitute evidence of the
    amounts of all such advances, interest and payments and of the indebtedness
    owing by us from time to time in respect of each Loan.

  

Debiting of Accounts

You are authorized, but not obliged, to debit any of our accounts with
    any amounts due and payable by us under this Agreement.

  

Compliance with Law

We are in compliance and agree that in the future we will comply with all
    laws, regulations, official directives and authorizations applying to us or
    any of our property or business, including any relating to the environment
    or public health and safety ("Environmental Laws"). We will notify you
    immediately of any breach of Environmental Laws. We will also promptly
    advise you of all communications and reports in connection with any matters
    materially affecting us, our property or business and relating to
    Environmental Laws.

  

Expenses

We will pay all fees, expenses and legal costs, (on the basis of a
    solicitor and its own client, or where applicable including extra-judicial
    costs) incurred by you in connection with this Agreement and any security
    provided to you and the enforcement of your rights against us or under any
    security. These costs and expenses may include (but are not limited to)
    costs of amendments, appraisals, inspections, environmental reviews,
    registrations, searches, discharges and actions taken in connection with the
    preservation of your rights under this Agreement or under your security.

    
  

Whole Agreement

This Agreement and any documents or instruments referred to in, or
    delivered pursuant to, this Agreement constitute the whole and entire
    agreement between us with respect to the Loans.

    
  

Amendments and Waivers

No amendment or waiver of any provision of this Agreement will be
    effective unless it is in writing and signed by you.

  

Language

The parties acknowledge that they have required that this document and
    all related documentation be drawn up in the English language. Les
    parties reconnaissent avoir demande que la presente convention ainsi que
    tons les documents qui s'y rattachent soient rediges en langue anglaise.

     

  

GENERAL SECURITY AGREEMENT

    1.    SECURITY INTEREST

        (a)    For value received the undersigned ("Debtor") hereby grants to ROYAL
BANK OF CANADA ("RBC"), a security interest (the "Security Interest") in the
undertaking of Debtor and in all of Debtor's present and after acquired personal
property including, without limitation, in all Goods (including all parts,
accessories, attachments, special tools, additions and accessions thereto),
Chattel Paper, Documents of Title (whether negotiable or not), Instruments,
Intangibles, Money and Securities now owned or hereafter owned or acquired by or
on behalf of Debtor including such as may be returned to or repossessed by
Debtor) and in all proceeds and renewals thereof, accretions thereto and
substitutions therefore (hereinafter collectively called "Collateral"), and
including, without limitation, all of the following now owned or hereafter owned
or acquired by or on behalf of Debtor:

	(i)	
          all inventory of whatever kind and wherever situate:

            
	(ii)	
          all equipment (other than inventory) of whatever kind and whatever
          situate, including, without limitation, all machinery, tools,
          apparatus, plant, furniture, fixtures and vehicles of whatsoever
          nature or kind;

            
	(iii)	
          all Accounts and book debts and generally all debts, dues, claims, choses in action and demands of every nature and kind howsoever
          arising or secured including letters of credit and advices of credit,
          which are now due, owing or accruing or growing due to or owned by or
          which may hereafter become due, owing or accruing or growing due to or
          owned by Debtor ("Debts");

            
	(iv)	
          all deeds documents, writings, papers,
          books of account and other books relating to or being records of
          Debts, Chattel Paper or Documents of Title or by which such are or may
          hereafter be secured, evidenced, acknowledged or made payable;

            
	(v)	
          all contractual rights and insurance
          claims;

            
	(vi)	
          all patents, industrial designs, trade-marks, trade secrets and
          know-how including without limitation environmental technology and
          biotechnology, confidential information, trade-names, goodwill,
          copyrights, personality rights, plant breeders' rights, integrated
          circuit topographies software and all other forms of
          intellectual and industrial property, and any registrations and
          applications for registration of any of the foregoing (collectively
          "Intellectual Property"); an

            
	(vii)	
          all property described in Schedule "C" or any schedule now or
          hereafter annexed hereto.

            

      
    
  

        (b)    The Security Interest granted hereby shall not extend or apply to
and Collateral shall not include the last day of the term of any lease or
agreement therefor but upon the enforcement of the Security Interest, Debtor
shall stand possessed of such last day in trust to assign the same to any person
acquiring such term.

        (c)    The terms "Goods", "Chattel Paper", "Document of Title", "Instrument",
"Intangible", "Security", "proceed", "inventory", "accession", "Money",
"Account", "financing statement" and "financing change statement" whenever used
herein shall be interpreted pursuant to their respective meanings when used in
The Personal Property Security Act of the province referred to in Clause 14(r),
as amended from time to time, which Act, including amendments thereto and any Act
substituted therefor and amendments thereto is herein referred to as the "P.P.S.A.".
Provided always that the term "Goods" when used herein shall not include
"consumer goods" of Debtor as that term is defined in the P.P.S.A., and the term
"Inventory" when used herein shall include livestock and the young thereof after
conception and crops that become such within one year of execution of this
Security Agreement. Any reference herein to "Collateral" shall, unless the
context otherwise requires, be deemed a reference to "Collateral" or any part
thereof.

2.    INDEBTEDNESS SECURED

The Security Interest granted hereby secures payment and performance of any
and all obligations. indebtedness and liability of Debtor to RBC (including
interest thereon) present or future, direct or indirect, absolute or contingent,
matured or not, extended or renewed, wheresoever and howsoever incurred and any
ultimate unpaid balance thereof and whether the same is from time to time
reduced and thereafter increased or entirely extinguished and thereafter
incurred again and whether Debtor be bound alone or with another or others and
whether as principal or surety (hereinafter collectively called the
"Indebtedness"). If the Security Interest in the Collateral is not sufficient,
in the event of default, to satisfy all Indebtedness of the Debtor, the Debtor
acknowledges and agrees that Debtor shall continue to be liable for any
indebtedness remaining outstanding and RBC shall be entitled to pursue full
payment thereof.

3.    REPRESENTATIONS AND WARRANTIES OF DEBTOR

Debtor represents and warrants and so long as this Security Agreement remains
in effect shall be deemed to continuously represent and warrant that:

        (a)    that the Collateral is genuine and owned by Debtor free of all security
interests, mortgages, liens, claims, charges, licenses, leases, infringements by
third parties, encumbrances or other adverse claims or interests (hereinafter
collectively called "Encumbrances"), save for the Security interest and those
Encumbrances shown on Schedule "A" or hereafter approved in writing by RBC,
prior to their creation or assumption;

        (b)    all Intellectual Property applications and registrations are valid and in
good standing and Debtor is the Owner of the applications and registrations;

        (c)    each Debt, Chattel Paper and Instrument constituting Collateral is
enforceable in accordance with its terms against the party obligated to pay the
same (the "Account Debtor"), and the amount represented by Debtor to RBC from
time to time as owing by each Account Debtor or by all Account Debtors will be
the correct amount actually and unconditionally owing by such Account Debtor or
Account Debtors, except for normal cash discounts where applicable, and no
Account Debtor will have any defense, set off, claim or counterclaim against
Debtor which can be asserted against RBC, whether in any proceeding to enforce
Collateral or otherwise;

        (d)    the locations specified in Schedule B as to business operations and
records are accurate and complete and with respect to Goods (including
Inventory) constituting Collateral, the locations specified in Schedule "B" are
accurate and complete save for Goods in transit to such locations and Inventory
on lease or consignment; and all fixtures or Goods about to become fixtures and
all crops and all oil gas or other minerals to be extracted and all timber to be
cut which forms part of the Collateral will be situate at one of such locations;
and

        (e)    the execution, delivery and performance of the obligations under this
Security Agreement and the creation of any security interest in or assignment
hereunder of Debtor's rights in the Collateral to RBC will not result in a
breach of any agreement to which Debtor is a party.

4.   

COVENANTS OF THE DEBTOR

So long as this Security Agreement remains in effect Debtor covenants
end agrees:

        (a)    to defend the Collateral against the claims and demands of all other
parties claiming the same or an interest therein; to diligently initiate and
prosecute legal action against all intruders of Debtor's rights in intellectual
Property; to take all reasonable action to keep the Collateral free from all
Encumbrances, except for the Security Interest, licenses which are compulsory
under federal or provincial legislation and those shown on Schedule "A" or
hereafter approved in writing by RBC, prior to their creation or assumption, and
not to sell, exchange, transfer, assign, lease, license or otherwise dispose of
Collateral or any interest therein without the prior written consent of RBC;
provided always that, until default, Debtor may in the ordinary course of
Debtor's business, sell or lease inventory and, subject to Clause 7 hereof, use
Money available to Debtor;

        (b)    to notify RBC promptly of:

	any change in the information contained herein or in the Schedules
          hereto relating to Debtor, Debtor's business or Collateral,
	the details of any significant acquisition of Collateral,
	the details of any claims or litigation affecting Debtor
          or Collateral,
	any loss or damage to Collateral,
	any default by any Account Debtor in payment or other performance
          of its obligations with respect to Collateral, and
	the return to or repossession by Debtor of Collateral;

        (c)    to keep Collateral in good order, condition and repair and not to use
Collateral in the provisions of this Security Agreement or any other agreement
relating to collateral or any policy insuring Collateral or any applicable
statute, law, by-law, rule, regulation or ordinance, to keep all agreements,
registrations and applications relating to Intellectual Property and
intellectual property used by Debtor in its business in good standing and to
renew all agreements and registrations as may be necessary or desirable to
protect Intellectual Property, unless otherwise agreed in writing by RBC, to
apply to register all existing and future copyrights, trade-marks, patents,
integrated circuit topographies and industrial designs whenever it is
commercially reasonable to do so;

        (d)    to do, execute, acknowledge and deliver such financing statements,
financing change statements and further assignments, transfers, documents, acts,
matters and things (including further schedules hereto) as may be reasonably
requested by RBC of or with respect to Collateral in order to give effect to
these presents and to pay all costs for searches and filings in connection
therewith;

        (e)    to pay all taxes, rates, levies, assessments and other charges of every
nature which may be lawfully levied, assessed or imposed against or in respect
of Debtor or Collateral as and when the same become due and payable;

        (f)    to insure Collateral for such periods, in such amounts, on such terms and
against loss or damage by fire and such other risks as RBC shall reasonably
direct with loss payable to RBC and Debtor, as insured, as their respective
interests may appear, and to pay all premiums therefor;

        (g)    to prevent Collateral, save inventory sold or leased as permitted hereby,
from being or becoming an accession to other property not covered by this
Security Agreement;

        (h)    to carry on and conduct the business of Debtor in a proper and efficient
manner and so as to protect and preserve Collateral and to keep, in accordance
with generally  accepted accounting principles,
consistently applied, proper books of account for Debtor's business as well as
accurate and complete records concerning Collateral, and mark any and all such
records and Collateral at RBC's request so as to indicate the Security Interest;

        (i)    to deliver to RBC from time to time promptly upon request:

	(i)	 	any Documents of Title, Instruments,
    Securities and Chattel Paper constituting, representing or relating to
    Collateral,
	(ii)	 	all books of account and all records, ledgers,
    reports, correspondence, schedules, documents, statements, lists and other
    writings relating to Collateral for the purpose of inspecting, auditing or
    copying the same,
	(iii)	 	all financial statements prepared by or for
    Debtor regarding Debtor's business,
	(iv)	 	all policies and certificates of insurance
    relating to Collateral, and
	(v)	 	such information concerning Collateral, the
    Debtor and Debtor's business and affairs as RBC may reasonably request.

5.   

USE AND VERIFICATION OF COLLATERAL

Subject to compliance with Debtor's covenants contained herein and Clause 7
hereof, Debtor may, until default, possess, operate, collect, use and enjoy and
deal with Collateral in the ordinary course of Debtor's business in any manner
not inconsistent with the provisions hereof provided always that RBC shall have
the right at any time and from time to time to verify the existence and state of
the Collateral in any manner RBC may consider appropriate and Debtor agrees to
furnish all assistance and information and to perform all such acts as RBC may
reasonably request in connection therewith and for such purpose to grant to PRO
or its agents access to all places where Collateral may be located and to
all premises occupied by Debtor.

6.   

SECURITIES

If Collateral at any time includes Securities, Debtor authorizes RBC to
transfer the same or any part thereof into its own name or that of its nominee(s)
so that RBC or its nominee(s) may appear of record as the sole owner thereof,
provided that, until default, RBC shall deliver promptly to Debtor all notices
or other communications received by it or its nominee(s) as such registered
owner and upon demand and receipt of payment of any necessary expenses thereof,
shall issue to Debtor or its order a proxy to vote and take action with respect
to such Securities. After default, Debtor waives all rights to receive any notices
or communications received by RBC or to nominee(s) as such registered Owner and
agrees that no proxy issued by RBC to Debtor or its order as aforesaid shall
thereafter be effective.

7.    COLLECTION OF DEBTS

Before or after default under this Security Agreement, RBC may notify all or
any Account Debtors of the Security Interest and may also direct such Account
Debtors to make all payments on Collateral to RBC. Debtor acknowledges that any
payments on or other proceeds of Collateral received by Debtor from Account
Debtors whether before or after notification of this Security Interest to
Account Debtors and whether before or after default under this Security
Agreement, shall be received and held by Debtor in trust for RBC and shall be
turned over to RBC upon request.

8.    INCOME FROM AND INTEREST ON COLLATERAL

        (a)    Until default, Debtor reserves the right to receive any Money
constituting income from or interest on Collateral and RBC receives any such
Money prior to default. RBC shall either credit the same against the
indebtedness or pay the same promptly to Debtor.

        (b)    After default, Debtor will not request or receive any Money constituting
income from or interest on Collateral and if Debtor receives any such Money
without any request by it, Debtor will pay the same promptly to RBC.

9.    INCREASES, PROFITS, PAYMENTS OR DISTRIBUTIONS

        (a)    Whether or
not default has occurred, Debtor authorizes RBC;

	(i)	 	
      to receive any Increase in or profits on
      Collateral (other than Money) and to hold the same as part of Collateral.
      Money so received shall be treated as income for the purposes of Clause 8
      hereof and dealt with accordingly;

	(ii)	 	to receive any payment or distribution upon
      redemption or retirement or upon dissolution and liquidation of the issuer
      of Collateral; to surrender such Collateral in exchange therefore and to
      hold any such payment or distribution as part of Collateral.

       
(b)    If Debtor
receives any such increase or profits (other than Money) or payments or
distributions, Debtor will deliver the same promptly to RBC to be held by RBC as
herein provided.

10.    DISPOSITION OF MONEY

Subject to any applicable requirements of the P.P.S.A., all Money collected
or received by RBC pursuant to or in exercise of any right it possesses with
respect to Collateral shall be applied on account of Indebtedness in such manner
as RBC deems best or, at the option of RBC, may be held unappropriated in a
collateral account or released to Debtor, all without prejudice to the liability
of Debtor or the rights of RBC hereunder, and any surplus shall be accounted for
as required by law.

11.    EVENTS OF DEFAULT

The happening of any of the following events or conditions shall constitute
default hereunder which is herein referred to as "default":

	
    (a)
	
     
	
the nonpayment when due, whether by acceleration or otherwise of any principal
or Interest forming part of Indebtedness or the failure of Debtor to observe or
perform any obligation, covenant, term, provision or condition contained in the
Security Agreement or any other agreement between Debtor and RBC;

    
	
    (b)
	
     
	
the death of or a declaration of Incompetency by a court of competent
jurisdiction with respect to Debtor, if an individual;

    
	
    (c)
	
     
	
    the bankruptcy or Insolvency of Debtor; the filing against Debtor of a petition
in bankruptcy; the making of an assignment for the benefit of creditors by
Debtor; the appointment of a receiver or trustee for Debtor or for any assets of
Debtor or the Institution by or against Debtor of any other type of insolvency
proceeding under the Bankruptcy Act or otherwise;

	
    (d)
	
     
	
    the institution by or against Debtor of any formal or informal proceeding for
the dissolution or liquidation of, settlement of claims against or winding up of
affairs of Debtor;

	
    (e)
	
     
	
if any Encumbrance affecting Collateral becomes enforceable against Collateral;

    
	
    (f)
	
     
	
it Debtor ceases or threatens to cease to carry on business or makes or agrees
to make a bulk sale of assets without complying with applicable law or commits
or threatens to commit an act of bankruptcy;

    
	
    (g)
	
     
	
if any execution, sequestration. extent or other process of any court becomes
enforceable against Debtor or if distress or analogous process is levied upon
the assets of Debtor or any part thereof;

    
	
    (h)
	
     
	
if any certificate, statement, representation, warranty or audit report
heretofore or hereafter furnished by or on behalf of Debtor pursuant to or in
connection with this Security Agreement, or otherwise (including, without
limitation, the representations and warranties contained herein) or as an
inducement to RBC to extend any credit to or to enter into this or any other
agreement with Debtor, proves to have been false in any material respect at the
time as of which the facts therein set forth were stated or certified, or proves
to have omitted any substantial contingent or unliquidated liability or claim
against Debtor, or if upon the date of execution of this Security Agreement,
there shall have been any material adverse change in any of the facts disclosed
by any such certificate, representation, statement, warranty or audit report,
which change shall not have been disclosed to RBC at or prior to the time of
such execution.

    

12.    ACCELERATION

RBC, in its sole discretion, may declare all or any part of Indebtedness
which is not by its terms payable on demand to be immediately due and payable,
without demand or notice of any kind, in the event of default, or if RBC
considers itself Insecure or that the Collateral is in jeopardy. The provisions
of this clause are not intended in any way to affect any rights of RBC with
respect to any Indebtedness which may now or hereafter be payable on demand.

13.   
REMEDIES

        (a)    Upon
default, RBC may appoint or reappoint by instrument in writing. any person or
persons, whether an officer or officers or an employee or employees of RBC or
not, to be a receiver or receivers (hereinafter called a "Receiver", which term
when used herein shall include a receiver and manager) of Collateral (including
any interest, income or profits therefrom) and may remove any Receiver so
appointed and appoint another in his/her stead. Any such Receiver shall, so far
as concerns responsibility for his/hear acts, be deemed the agent of Debtor and
not RBC, and RBC shall not be in any way responsible for any misconduct,
negligence or non-feasance on the part of any such Receiver, his/her servants,
agents or employees. Subject to the provisions of the instrument appointing
him/her, any such Receiver shall have power to take possession of Collateral, to
preserve Collateral or its value, to carry on or concur in carrying on all or any
part of the business of Debtor and to sell, lease, license or otherwise dispose
of or concur in selling, leasing, licensing or otherwise disposing of
Collateral. To facilitate the foregoing powers, any such Receiver may, to the
exclusion of all others, including Debtor, enter upon, use and occupy all
premises owned or occupied by Debtor wherein Collateral may be situate, maintain
Collateral upon such premises, borrow money on a secured or unsecured basis and
use Collateral directly in carrying on Debtor's business or as security for loans
or advances to enable the Receiver to carry on Debtor's business or otherwise, as
such Receiver shall, in its discretion, determine. Except as may be otherwise
directed by RBC, all Money received from time to time by such Receiver in
carrying out his/her appointment shall be received in trust for and paid over to
RBC. Every such Receiver may, in the discretion of RBC, be vested with all or
any of the rights and powers of RBC.

        (b)    Upon default,
RBC may, either directly or through its agents or nominees, exercise any or all
of the powers and rights given to a Receiver by virtue of the foregoing
sub-clause (a).

        (c)    RBC may take
possession of, collect, demand, sue on, enforce, recover and receive Collateral
and give valid and binding receipts and discharges therefor and in respect
thereof and, upon default, RBC may sell, license, lease or otherwise dispose of
Collateral in such manner, at such time or times and place or places, for such
consideration and upon such terms and conditions as to RBC may seem reasonable.

        (d)    In addition to
those rights granted herein and in any other agreement now or hereafter in
effect between Debtor and RBC and in addition to any other rights RBC may have
at law or in equity, RBC shall have, both before and after default, all rights
and remedies of a secured party under the P.P.S.A. Provided always, that RBC
shall not be liable or accountable for any failure to exercise its remedies,
take possession of, collect enforce, realize, sell, lease, license or otherwise
dispose of Collateral or to institute any proceedings for such purposes.
Furthermore, RBC shall have no obligation to take any steps to preserve rights
against prior parties to any Instrument or Chattel Paper whether Collateral or
proceeds and whether or not in RBC s possession and shall not be liable or
accountable for failure to do so.

        (e)    Debtor
acknowledges that RBC or any Receiver appointed by it may take possession of
Collateral wherever it may be located and by any method permitted by law and
Debtor agrees upon request from RBC or any such Receiver to assemble and deliver
possession of Collateral at such place or paces as directed.

        (f)    Debtor agrees
to be liable for an to pay all costs, charges and expenses reasonably incurred
by RBC or any Receiver appointed by it whether directly or for services
rendered (including reasonable solicitors and auditors costs and other legal
expenses and Receiver remuneration) in operating Debtor's accounts, in preparing
or enforcing this Security Agreement, taking and maintaining custody of,
preserving, repairing, processing, preparing for disposition and disposing of
Collateral and enforcing or collecting indebtedness and all such costs, charges
and expenses together with any amounts owing as a result of any borrowing by RBC
or any Receiver appointed by it, as permitted hereby shall be a first
charge on the proceeds of realization, collection or disposition of Collateral
and shall be secured hereby.

        (g)    RBC will give
Debtor such notice, if any, of the date, dime and place of any public sale or of
the date after which any private disposition of Collateral is to be made as may
be required by the P.P.S.A.

        (h)    Upon default an
receiving written demand from RBC, Debtor shall take such further action as may
be necessary to evidence and effect an assignment or licensing of Intellectual
Property to whomever RBC directs, including to RBC. Debtor appoints any officer
or director or branch manager of RBC upon default to be its attorney in
accordance with applicable legislation with full power of substitution and to do on Debtor's behalf anything that is required to assign, license or transfer,
and to record any assignment, license or transfer, and to record any assignment,
license or transfer of the Collateral. This power of attorney which is coupled
with an interest, is irrevocable until the release or discharge of the Security
Interest.

14.    MISCELLANEOUS

         (a)    Debtor
hereby authorizes RBC to file such financing statements, financing change
statements and other documents and do such acts. matters and things (including
completing and adding schedules hereto identifying Collateral or any permitted
Encumbrances affecting Collateral or identifying the locations at which Debtor's
business is carried on and Collateral and records relating thereto are situate)
as RBC may deem appropriate to perfect on an ongoing basis and continue the
Security Interest, to protect and preserve Collateral and to realize upon the
Security Interest and Debtor hereby irrevocably constitutes and appoints the
Manager or Acting Manager from time to time of the herein mentioned branch of
RBC the true and lawful attorney of Debtor, with full power of substitution, to
do any of the foregoing in the name of Debtor whenever and wherever it may be
deemed necessary or expedient.

        (b)    Without
limiting any other right of RBC, whenever indebtedness is immediately due and
payable or RBC has the right to declare indebtedness to be immediately due and
payable (whether or not it has so declared), RBC may, in its sole discretion,
set o ff against indebtedness any and all amounts then owed to Debtor by RBC in
any capacity, whether or not due, and RBC shall be deemed to have exercised such
right to set off immediately at the time of making its decision to do so even
though any charge therefore is made or entered on RBC's records subsequent
thereto.

        (c)    Upon Debtor's
failure to perform any of its duties hereunder, RBC may, but shall not be
obligated to, perform any or all of such duties, and Debtor shall pay to RBC,
forthwith upon written demand therefor, an amount equal to the expense incurred
by RBC in so doing plus interest thereon from the date such expense is incurred
until it is paid at the rate of 15% per annum.

        (d)    RBC may grant
extensions of time and other indulgences, take and give up security, accept
compositions, compound, compromise, settle, grant releases and discharges and
otherwise deal with Debtor, debtors of Debtor, sureties and others and with
Collateral and other security as RBC may see fit without prejudice to the
liability of Debtor or RBC's right to hold and realize the Security Interest.
Furthermore, RBC may demand, collect and sue on Collateral in either Debtor's or
RBC's name, at RBC's option, and may endorse Debtor's name on any and all
cheques, commercial paper, and any other instruments pertaining to or
constituting Collateral.

        (e)    No delay or
omission by RBC in exercising any right or remedy hereunder or with respect to
any indebtedness shall operate as a waiver thereof or of any other right or
remedy, and no single or partial exercise thereof shall preclude any other or
further exercise thereof or the exercise of any other right or remedy.
Furthermore, RBC may remedy any default by Debtor hereunder or with respect to
any indebtedness in any reasonable manner without waiving the default remedied
and without waiving any other prior or subsequent default by Debtor. All rights
and remedies of RBC granted or recognized herein are cumulative and may be
exercised at any time and from time to time independently or in remedies of RBC
granted or recognized herein are cumulative and may be exercised at any time and
from time to time independently or in combination.

        (f)    Debtor waives
protest of any instrument constituting Collateral at any time held by RBC on
which Debtor is in any way liable and subject to Clause 13(g) hereof, notice of
any other action taken by RBC

        (g)    This Security
Agreement shall enure to the benefit of and be binding upon the parties hereto
and their respective heirs, executors, administrators, successors, and assigns.
In any action brought by an assignee of this Security Agreement and the Security
Interest or any part thereof to enforce any rights hereunder.  Debtor shall not
assert against the assignee any claim or defense which Debtor now has or
hereafter may have against RBC. If more than one Debtor executes this
Security Agreement the obligations of such Debtors hereunder shall be joint and
several. 

        (h)    Save for any
schedules which may be added hereto pursuant to the provisions hereof, no
modification, variation or amendment of any provision of this Security Agreement
shall be made except by a written agreement, executed by the parties hereto and
no waiver of any provision hereof shall be effective unless in writing.

        (i)    Subject to the
requirements of Clauses 13(g) and 14(j) hereof, whenever either party hereto is
required or entitled to notify or direct the other such notice, direction,
demand or request shall be in writing and shall be sufficiently given, in the
case of RBC, if delivered to it or sent by prepaid registered mail addressed to
it at its address herein set forth or as changed pursuant hereto, and in the
case of Debtor, if delivered to it or if sent by prepaid registered mail
addressed to it at its last address known to RBC. Either party may notify the
other pursuant hereto of any change in such party's principal address to be used
for the purposes hereof.

        (j)    This Security
Agreement and the security afforded hereby is in addition to and not in
substitution for any other security now or hereafter held by RBC and is intended
to be a continuing Security Agreement and shall remain in full force and effect
until the Manager or Acting Manager from time to time of the herein mentioned
branch of RBC shall actually receive written notice of its discontinuance, and
notwithstanding such notice, shall remain in full force and effect thereafter
until all indebtedness contracted for or created before the receipt of such
notice by RBC, and any extensions or renewals thereof (whether made before or
after receipt of such notice) together with interest accruing thereon after such
notice, shall be paid in full.

        (k)    The headings
used in this Security Agreement are for convenience only and are not to be
considered a part of this Security Agreement and do not in any way limit or
amplify the terms and provisions of this Security Agreement.

        (l)    When the
context so requires, the singular number shall be read as if the plural were
expressed and the provisions hereof shall be read with and grammatical changes
necessary dependent upon the person referred to being a male, female, firm or
corporation.

        (m)    In the event
any provisions of this Security Agreement, as amended from time to time, shall
be deemed invalid or void, in whole or in part, by any Court of competent
jurisdiction, the remaining terms and provisions of this Security Agreement
shall remain in full force and effect.

        (n)    Nothing herein
contained shall in any way obligate RBC to grant, continue, renew, extend time
for payment of or accept anything which constitutes or would constitute
indebtedness.

        (o)    The Security
Interest created hereby is intended to attach when this Security Agreement is

signed by Debtor and delivered to RBC.

        (p)    Debtor
acknowledges and agrees that in the event it amalgamates with any other company
or companies it is the intention of the parties hereto that the term "Debtor"
when used herein shall apply to each of the amalgamating companies and to the
amalgamated company, such that the Security Interest granted hereby

               
(i)    shall extend to "Collateral" (as that term is herein
defined) owned by each of the amalgamating companies and the amalgamated company
at the time of amalgamation and to any "Collateral" thereafter owned or acquired
by the amalgamated company, and

               
(ii)    shall secure the "indebtedness" (as that term is herein
defined) of each of the amalgamating companies and the amalgamated company to
RBC at the time of amalgamation and any "indebtedness" of the amalgamated
company to RBC thereafter arising. The Security Interest shall attach to
"Collateral" owned by each company amalgamating with Debtor, and by the
amalgamated company, at the time of the amalgamation, and shall attach to any
"Collateral" thereafter owned or acquired by the amalgamated company when such
becomes owned or is acquired.

        (q)    In the event
that Debtor is a body corporate, it is hereby agreed that The Limitation of
Civil Rights Act of the Province of Saskatchewan, or any provision thereof,
shall have no application to this Security Agreement or any agreement or
instrument renewing or extending or collateral to this Security Agreement. In
the event that Debtor is an agricultural corporation within the meaning of The
Saskatchewan Farm Security Act, Debtor agrees with RBC that all of Part IV
(other than Section 46) of that Act shall not apply to Debtor.

        (r)    This Security
Agreement and the transactions evidenced hereby shall be governed by and
construed in accordance with the laws of the province in which the herein
mentioned branch of RBC is located, as those laws may from time to time be in
effect, including, where applicable, the P.P.S.A.

15.    COPY OF AGREEMENT

        (a)    Debtor
hereby acknowledges receipt of a copy of this Security Agreement.

        (b)    Debtor waives
Debtor's right to receive a copy of any financing statement or financing change
statement registered by RBC, or of any verification statement with respect to
any financing statement or financing change statement registered by RBC.
(Applies in all PPSA provinces except Ontario.)

16.    Debtor represents and warrants that the following
information is accurate:

INDIVIDUAL DEBTOR

	SURNAME (LAST NAME)	FIRST NAME	SECOND
    NAME	BIRTH DATE
	ADDRESS OF
    INDIVIDUAL DEBTOR	CITY	PROVINCE	POSTAL CODE
	SURNAME (LAST NAME)	FIRST NAME	SECOND
    NAME	BIRTH DATE
	ADDRESS OF
    INDIVIDUAL DEBTOR	CITY	PROVINCE	POSTAL CODE

BUSINESS DEBTOR

	NAME OF BUSINESS
    DEBTORAUTOFUN CANADA INC.

	ADDRESS OF BUSINESS
    DEBTOR55 Town Centre Court
	CITY
    Scarborough
	PROVINCE
    Ontario
	POSTAL CODE
    M1P 4X4

TRADE NAME (IF APPLICABLE)

	trade name of debtor
	principal address
    (if different from above)	city	province	postal code

IN WITNESS WHEREOF Debtor has executed this Security Agreement this 3rd day
of February, 2000.

_____________________________________ ____________________________________

WITNESS

_____________________________________ ____________________________________

WITNESS

BRANCH ADDRESSLease

EXHIBIT 10.8

 

THIS INDENTURE made in duplicate the 11th day of April 1995.

IN THE YEAR ONE THOUSAND HUNDRED AND NINETY-FIVE

IN PURSUANCE OF THE SHORT FORM OF LEASES ACT.

BETWEEN:

	
       
	
    SCARBOROUGH FINANCIAL SERVICES LIMITED

	
       
	
    Hereinafter referred to as the "LESSOR"

	
       
	
    OF THE FIRST PART

	
    -and-   

	
       
	
    AUTOMOTIVE SUNROOF COMPANY

	
       
	
    Hereinafter referred to as the "LESSEE"

	
       
	
    OF THE SECOND PART

	
    -and-   

	
       
	
    AYAZ SOMANI

	
       
	
    Hereinafter referred to as the "GUARANTOR"

	
       
	
    OF THE SECOND PART

                              
                            
                          
                        
                      
                    
                  
                
              
            
          
        
      
    
  

        WITNESSETH that in
consideration of the rents, covenants and agreements hereinafter reserved and
contained on the part of the Lessee to be paid, observed and performed, the
Lessor has demised and leased and by these presents doth demise and lease unto
the Lessee ALL THAT CERTAIN MESSUAGE OR TENEMENT situate, lying and being in the
City of Scarborough, in the municipality of Metropolitan Toronto, and being that
part of an industrial building known as 595 Middlefield Road (the "building")
Unit #11 which contains 6255 square feet more or less subject to measurements by
the Lessor's Architect or contractor, (herein referred to as the "DEMISED
PREMISES"). Premised to be used for offices, storage, distribution and
installation for automotive trim shop, together with parking at large on the
parking area for patrons and vehicles to and from the demised premises and the
parking area.

2.    TO HAVE AND TO HOLD the said demised premises unless
such term shall be sooner terminated as hereinafter provided for an during the
term to be computed from and inclusive of the 15th day of April,
1995, and from thenceforth next ensuing and fully to be completed and ended on
the 14th day of June, 2000.

3.    YIELDING AND PAYING and commencing on
the 15th day of April, 1995, to and including the 14th day of June,
1996, therefore during the said term unto the said Lessor at the rate of
SEVENTEEN THOUSAND, FIVE HUNDRED AND FOURTEEN DOLLARS ($17,514.00) annually in
lawful money of Canada to be paid in advance without deduction ONE THOUSAND,
FOUR HUNDRED AND FIFTY-NINE DOLLARS AND FIFTY CENTS ($1,459.50) each on the 1st
day of each and every month during the said term.

        YIELDING AND
PAYING and commencing on the 15th day of June, 1996, to and including the
14th day of June, 1997, therefore during the said term unto the said
Lessor at the rate of NINETEEN THOUSAND, SEVENTY-SEVEN DOLLARS AND SEVENTY-FIVE
CENTS ($19,077.75) annually in lawful money of Canada to be paid in advance
without deduction ONE THOUSAND, FIVE HUNDRED AND EIGHTY-NINE DOLLARS AND
EIGHTY-ONE CENTS ($1,589,81) each on the 1st day of each and every
month during the said term.

        YIELDING AND
PAYING and commencing on the 15th day of June, 1997, to and including the 14th
day of June, 1998, therefore during the said term unto the said Lessor at the
rate of TWENTY-TWO THOUSAND, TWO HUNDRED AND FIVE DOLLARS AND TWENTY-FIVE CENTS
($22,205.25) annually in lawful money of Canada to be paid in advance without
deduction ONE THOUSAND, EIGHT HUNDRED AND FIFTY DOLLARS AND FORTY-FOUR CENTS
($1,850.44) each on the 1st day of each and every month during the
said term.

        YIELDING AND
PAYING and commencing on the 15th day of June, 1998, to and including the 14th
day of June 2000, therefore during the said term unto the said Lessor at the
rate of TWENTY-THREE THOUSAND, SEVEN HUNDRED AND SIXTY-NINE DOLLARS ($23,769.00)
annually in lawful money of Canada to be paid in advance without deduction ONE
THOUSAND, NINE HUNDRED AND EIGHTY DOLLARS AND SEVENTY-FIVE CENTS ($1,980.75)
each on the 1st day of each and every month during the said term.

        NOTWITHSTANDING
the above, it is hereby understood and agreed that the Lessee shall have vacant
possession of the said premises, net rent free, from April 15, 1995, to June 14,
1995, for the purpose of setting up business provided all Lease documents have
been fully executed and returned to the Lessor. And further provided that the
Lessee shall be responsible for all payments with regard to Realty Taxes,
Outside Maintenance, Building Insurance, Management Fees and Utilities with
their applicable Goods and Services taxes for the demised premises from the date
of possession. All terms and conditions, save and except payment of net rental,
of the Lease shall be in fill force and effect throughout the net rent free
period.

TOGETHER WITH the additional rent hereinafter reserved, such
payments to be made payable to the Lessor at the office of the Lessor at P.O.
BOX #1240, STOUFFVILLE, ONTARIO, L4A 8A2 or such other place as the Lessor may
hereafter from time to time direct in writing. The Lessee has already
paid to the Lessor the sum of SIX THOUSAND, FIVE HUNDRED AND TWENTY-FIVE DOLLARS
AND FIFTY-THREE CENTS ($6,525,53) which represents the first and last month's
rental due under this Indenture.

3a.    PROVIDED the Lessee is not then in default hereunder,
the Lessor shall at the expiration of the initial five (5) year term herein, if
written request has been given to the Lessor by the Lessee at least 6 months
prior to such expiration, grant to the Lessee a renewal and an extension of the
Lease for a further five (5) years upon the same terms and conditions as
contained herein and save and except as the amount of rent to be charged.

3b.    The annual rental payable during the
renewal term will be such rental which is agreed upon between the parties herein
at least prior to the expiration of the immediately preceding term.

3c.    In the event that the Lessor and the
Lessee cannot agree as to the amount of rental to be charged for renewal,
determination of the amount of rental to be charged shall be submitted to
arbitration whereby either the Lessor or the Lessee notifies the other of its
intention to resort to arbitration at least Thirty Days before the expiration of
the term, or renewal term, as the case may be. Each party shall appoint one
arbitrator within seven (7) days notice by either party to the other requesting
such appointment. The two arbitrators so appointed shall, within (7) days of the
appointment of the last arbitrator so appointed, choose a third arbitrator who
shall be the chairman and the award in writing as to the amount of rent to be
charged shall be made by all three of them or a majority of them within thirty
(30) days after the third arbitrator has been chosen, or as soon thereafter as
may be practicable. The arbitration shall be conducted pursuant to the
provisions of The Arbitrations Act, R.S.O., and shall be final.

3d.    The Lessor and the Lessee hereby
covenant and agree to abide by the decision rendered by the arbitrators or by
the majority of them.

3e.    If either party neglects or refuses to
name its arbitrator within seven (7) days of being requested to do so by the
other party, or to proceed with the arbitration, the arbitrator named by the
other party shall proceed and settle the dispute and its decision shall be
final.

3f.    If an arbitrator appointed as aforesaid dies or resigns
or fails to act and such failure continues for a period of seven (7) days after
notice thereof has been given to either party by the other or by another
arbitrator, a new arbitrator shall be appointed within nine (9) days after the
expiration of the above-mentioned delay by the party whom said arbitrator so
represented or by the two arbitrators if such arbitrator was represented or by
the two arbitrators if such arbitrator was appointed as a third arbitrator,
failing which the appointment shall be made by a Judge of the County Court of
the Judicial District of York upon application by either party.

3g.    The cost of any arbitration shall be
born equally by the Lessor and the Lessee except as the arbitrators may
otherwise determine.

4.    THE LESSEE COVENANTS AND AGREES WITH THE
LESSOR as follows:

(a)    To pay rent.

(b)    In each and every year during the term
hereof, to pay each installment of all G.S.T., municipal taxes, property taxes,
rates, including local improvement rates, duties and assessments (hereinafter
referred to as "THE PROPERTY TAXES") now or at any time during the term hereof
rated, charged, levied or assessed against the demised premises, or any part
thereof; or against the demised portion of the building and other improvements
at time during the term hereof standing thereon or against any machinery,
equipment or other facilities now or at any time during the term hereof brought
in or onto the demised premises and/or the said demised portion of the building
and improvements by the Lessee, and to pay any similar tax not now contemplated
by levied at any time during the term hereof by any competent governmental or
municipal body in lieu of, or partially in lieu of, or in addition to such
property taxes. It is understood and agreed that the Lessee will pay to the
Lessor as additional rent one-twelfth (1/12) of the annual taxes aforesaid as
reasonably estimated by the Lessor during each month of the term and the Lessor
during each month of the term and the Lessor shall apply such to the current tax
bill when the same is rendered and an accounting given and any excess held by
the Lessor shall be applied to the ensuing year's taxes, and any deficiency
shall be forthwith paid by the Lessee to the Lessor.

(c)    To pay to the Lessor as additional rent its
proportionate share of all G.S.T., municipal taxes, property taxes, rates,
including local improvement rates, duties and assessments, now or any time
during the term hereof rate, charged, levied or assessed upon, or in respect of
the common outside areas (as herein in this sub-paragraph defined) and including
but without limiting the generality of the foregoing a proportionate share of
all business taxes, if any, from time to time payable by the Lessor in respect
of the said common outside areas and facilities, or any part thereof. Such
proportionate share of the aforesaid taxes and/or rates, or any of them,
respecting the said common outside areas and facilities shall be that portion
thereof as the total floor area of the demised premises shall bear to the floor
area of all of the industrial building in which the herein demised premises form
a part. The said common outside areas and facilities shall for the purposes of
this paragraph mean all of the lands and shall pay to the Lessor as additional
rent one-twelfth (1/12) of all the annual taxes aforesaid as reasonably
estimated by the Lessor during each month of the term and the Lessor shall apply
such to the current tax bill when the same is rendered and an accounting given
and any excess held by the Lessor shall be applied to the taxes for the ensuing
year, and any deficiency shall be forthwith paid by the Lessee to the Lessor.

(d)    In each and every year during the term hereof; to pay,
satisfy and discharge directly all charges in connection with water, electric
current, gas rental charges for the gas or electrically operated hot water
heater and other public or private utilities and services extraordinarily as
well as ordinary supplied at any time to the demised premises.

(e)    To indemnify and keep indemnified the Lessor in respect
of all losses, costs, charges, penalties and expenses occasioned by or arising
from non-payment of any and every tax, rate, assessment, charge, expense or fee,
including any business or similar tax assessed against the Lessee or any
sub-tenant or licensee or other persons occupying or using the demised premises,
or any part thereof, and provided that the same shall not be a charge on the
demised premises or upon the said common ways and facilities, or in any way the
ultimate responsibility of the Lessor, and provided that the same shall not be
of a kind personal to the Lessor, such as taxes on the income of the Lessor
corporation tax of the Lessor, etc., and provided, and it is hereby agreed, that
when and so often as the Lessee neglects or omits to pay any of the charges
contemplated by this clause, then the Lessor may pay them and may thereupon
charge them to the Lessee as additional rent, and thereafter the Lessor shall
have the same remedies and may take the same steps for the recovery thereof as
the Lessor might take for the recovery of rent in arrears under the terms of the
Lease.

(f)    At its own expense, to promptly carry out all
maintenance and painting for the demised premises and of all machinery and
equipment situate therein and thereof (both inside and outside), and whether
with or without written notice from the Lessor and to repair the demised
premises and/or any part thereof, reasonable wear and tear, damage by fire,
lightning, tempest, flood, explosion, acts of God or the Queen's enemies, riot,
only excepted; and that in the event of the default of the Lessee under the
provisions of this sub-paragraph, the Lessor may itself comply with any such
requirements as aforesaid and the Lessee shall forthwith upon demand pay all
costs and expenses incurred by the Lessor in this regard and the Lessee hereby
agrees that all of such costs and expenses shall be recoverable by the Lessor as
if the same were rent in arrears under this Lease. PROVIDED that the Lessee
shall forthwith notify the Lessor of any structural defects or weaknesses in or
about the demised premises of which it has or receives notice. PROVIDED FURTHER
that it shall be lawful for the Lessor and its agents at all reasonable times
during the said term, to enter the demised premises to inspect the condition
thereof.

(g)    Provided that the demised premises so comply and
confirm at the commencement of the term hereof, and save for structural repairs,
to promptly comply with and conform to the requirements of all applicable
statutes, laws, by-laws, regulations ordinances and orders from time to time or
at any time in force during the term hereof and affecting the condition,
equipment maintenance, use or occupation of the demised premises and with every
applicable regulation, order and requirements of the Canadian Fire Underwriters
or fire insurance company by which the Lessor and Lessee or either of them may
be insured at any time during the term hereof, and that, in the event of the
default of the Lessee under the provisions of the sub-paragraph, the Lessor may
itself comply with any such requirements as aforesaid and the Lessee will
forthwith apply all costs and expenses shall be recoverable by the Lessor as if
the same were rent reserved and in arrears under this Lease.

(h)    In the event of any substantial damage to the demised
premises by any cause, to give notice in writing to the Lessor of such damage
forthwith upon the same becoming known to the Lessee.

(i)    To permit the Lessor at all reasonable times to enter
upon and view the state of repair of the demised premises and to comply with all
reasonable requirements of the Lessor herein in writing with regard to the care,
maintenance and repair thereof; reasonable wear and tear, damage by fire,
lightning, tempest, flood, explosion, acts of God or the Queen's enemies, riot,
civil commotion, insurrection, structural defects only excepted.

(j)    That upon the expiration of the term hereby granted the
Lessee will quit and deliver up the demised premises to the Lessor and that it
will leave the demised premises in good repair, reasonable wear and tear, damage
by fire, lightning, flood, explosion, acts of God and the Queen's enemies, riot,
civil commotion, insurrection, structural defects only excepted.

(k)    That it will not carry on or permit to be carried on in
the demised premises or thereon any business or activity which shall be deemed
upon reasonable grounds to be a nuisance and the demised premises shall be used
only for offices, storage, distribution and installation for automotive trim
shop.

(l)    During the term hereby created any stranger or
strangers, who are prospective purchasers or Lessees may inspect the demised
premises or any part thereof at a reasonable time, upon reasonable notice to the
tenant, on producing an order to that effect signed by the Lessor, provided that
such inspection shall not impinge on the classified nature of the business of
the Lessee, if any, and provided that the Lessee may elect to cause its
employees or agents to be present at the time of such inspections.

(m)    To assume the sole responsibility for the condition.
operation, maintenance and management of the demised premises, save with respect
to the obligations of the Lessor hereunder, or its employees, servants, agents,
contractors or subcontractors, and to heat the same with the heating equipment
supplied by the Lessor, and the Lessor warrants that the heating equipment
supplied by the Lessor will be in first class working order at the commencement
of the term hereof and will be adequate to reasonably heat the premises, and the
Lessor shall be under no liability for damage to the property of the Lessee or
of any sub-lessee or any person on the demised premises, which is or may at any
time be on the demised premises on any account or for any reason whatsoever.

(n)    ASSIGNMENT BY TENANT

Notwithstanding the provisions of Section 23 of the Landlord and Tenant Act,
R.C. 1980, Chapter 232 or any amendments thereto, or similar enactments in force
now or in the future, the Lessee shall not assign this lease or sub-let or part
with possession of all or any part of the herein demised premises or permit any
licensee or concessionaire to conduct business on the herein demised premises or
a portion thereof without the prior written consent of the Lessor, which consent
may not be unreasonably withheld; provided that if the Tenant is a corporation,
the transfer of the majority of the stock of the corporation or the transfer or
issuance of any of the stock of the corporation sufficient to transfer control
of the corporation to others than the immediate families of the then present
shareholders shall be deemed substantial violation of the foregoing clause
respecting assignment or sublease unless the prior written consent of the
Landlord is first obtained.

If the tenant shall assign this Lease, the Landlord may collect rent and any
other sums from the assignee, and apply the net amount collected to the rent and
other amounts payable hereunder but no such assignment shall be deemed a waiver
of this covenant or the acceptance of the assignee. All requests to the landlord
for consent to assigning this Lease or subletting or parting with the possession
of all or part of the herein demised premises shall be made to the Landlord in
writing together with such information in writing as a Landlord might reasonably
require respecting a proposed assignee, including without limitation, the name
address, nature of business experience and responsibility and financial
responsibility, standing and background of such proposed assignee and, in the
event that such proposed assignee is a corporation, similar information
respecting the principal shareholders of such corporation.

Any assignee, sub-tenant, licensee or concessionaire approved by the Landlord
shall be bound by all the terms, conditions, covenants, provisos, and agreements
of this Lease and shall, at the request of the Landlord, execute a covenant to
such effect.

The Landlord shall have the right to require the execution of such covenant
as a prior condition before the granting of consent to assignment or parting
with possession of all or part of the herein demised premises.

In the event of an assignment consented to by the Landlord, the Tenant shall
nonetheless remain responsible to the Landlord for the fulfillment of all
obligations created by this Lease.

(o)    That it will not place anything on the roof; whether
signs or otherwise or in any openings in the roof for stacks or other purposes
whatsoever without the written consent of the Lessor.

(p)    That it will during the whole of the term hereby
granted on demand pay, as and when the same become due and payable, its
proportionate share of all premiums accruing due with respect to fire insurance
policies, boiler insurance policies, if any, and liability insurance policies
effected by the Lessor on the building or buildings on the demised premises, and
the demised premises shall be insured and kept insured with a member of the
Canadian Underwriters Association against all loss by fire or other hazards
covered by the normal supplemental insurance contract from time to time in use
during the term hereof, including but without limiting the generality of the
foregoing, the hazards of lightning, explosions, windstorm, cyclone, tornado,
hail, riot, strikes, lockouts, workmen or persons taking part in labour
disputes, civil commotions, malicious damage, aircraft, smoke and vehicle to the
extent that the insurance against such risks and perils may be obtained in an
amount equal to NINETY PER CENTUM (90%) of the full replacement value thereof;
save for the value of the foundations and excavations, and provided that the
amount of such insurance shall not under any circumstances be less than the
amount required by any institution then holding a mortgage on the real property
subject to this lease, and in addition the demised premises shall be insured and
be kept insured at the expense of the Lessee during the term under the
provisions of any mortgages or charges of the demised premises held by any
mortgages thereof to the extent that the insurance against such risks or perils
of any of them may be obtained. PROVIDED FURTHER that loss, if any, under such
contracts of insurance shall be payable to the Lessor subject, if applicable, to
the interest of the holder or holders of any mortgage that may appear. AND
FURTHER PROVIDED that should the Lessee default in the payment of any such
premiums as herein provided, then the Lessor may pay the same forthwith and
thereafter shall take the same steps for the recovery thereof as it might take
for recovery of rent in arrears under the terms of this Lease. The Lessee's
liability is specifically limited to its proportionate share of the insurance
premiums on the Lessor's premises.

(q)(i)    To pay to the Lessor, by monthly installments to be
fixed from time to time by the Lessor, as additional rent, a proportionate share
of the cost of cleaning, snow removing, supervising, policing, insurance and the
cost of maintenance, including such repairs and replacements of paving, curbs,
walkways, landscaping and drainage as may from time to time be necessary, and
other which may reasonably be incurred with respect to the common areas and
facilities.

(ii)    The manner in which the said common outside areas and
facilities shall be maintained and the expenditures therefor shall be at the
sole discretion of the Lessor. Each twelve-month period ending December 31st
shall be deemed to be an accounting year for adjusting the said costs respecting
the said common outside areas and facilities and within thirty (30) days after
the end of each such accounting year the Lessor shall compute the said costs for
such proportionate share in reasonable detail indicate the basis for determining
the costs and the said proportionate share thereof to be borne by the Lessee. To
the extent that the Lessee's proportionate share of such costs for such
accounting year shall be greater or less than the total amount actually paid by
the Lessee by said monthly payments in respect of such year the difference shall
be paid by the Lessee to the Lessor or by the Lessor to the Lessee, as the case
may be, within ten (10) days after the receipt of such statement by the Lessee.
The said accounting period may be modified at the commencement or termination of
this Lease, or by agreement

(iii)    The said proportionate share of the said costs in
respect of such common outside areas and facilities shall be that portion
thereof as the total floor area of the demised premises shall bear to the floor
area of all demisable premises (including the premises hereby demised) in the
building as shown on the plan more particularly referred to in Schedule "A"
hereto.

(r)    Not to use any outside garbage or other containers or
allow any ashes, refuse, garbage, or other loose or objectionable material to
accumulate in or about the said demised premises and will at all times keep the
said premises in a clean and wholesome condition and shall immediately before
the termination of the term hereby granted, or the renewal period, if any, as
the case may be, wash the floors, windows, doors and woodwork of the premises
hereby demised, and further that it will not store or cause to be stored outside
of the demised premises any of its inventory of stock-in-trade or raw materials.

(s)    That all loading and unloading of merchandise,
supplies, materials, garbage, refuse and other chattels shall be made only
through or by means of such doorways or corridors as the Lessor shall designate
in writing inside the premises and shall be removed only at such time or
times as the Lessor shall from time to time advise the Lessee.

(t)    To keep well painted at all times the interior and
exterior of the demised premises in accordance with the reasonable requests of
the Lessor, PROVIDED that except as it otherwise herein provided for making of
repairs and general maintenance of the premises, the Lessor shall not require
the Lessee to repaint the outside of the premises more often than once every
five years of the term of this Lease, or any renewal thereof, and with respect
to the inside of the premises more often than once every ten (10) years of the
term of this Lease, or any renewal thereof.

(u)(i)    The rent herein shall be a net rental or carefree to
the Lessor, and in addition to the rent, the Lessee shall pay: real estate
taxes, G.S.T. and local improvement charges, and if any, utility charges, water
and telephone charges, also its proportionate share of: outside maintenance of
the common areas including driveways, trucking and parking areas, lawn and
shrubbery maintenance, snow removal and management, fire insurance premiums for
the building.

(ii)    Neither the Tenant nor its officers, directors,
agents, servants, licensees, concessionaires, assignees or subtenants shall
bring on to the herein demised premises, nor do, nor omit, nor permit to be
omitted upon or about the herein demised premises anything which shall cause the
rate of insurance upon or related to the herein demised premises or the
industrial building or any part thereof or its contents to be increased and if
the said rate of insurance shall be increased by reason of the use made of the
herein demised premises or by reason of any thing done or omitted or permitted
to be done or omitted by the Tenant or its officers, directors, agents,
servants, licensees, concessionaires, assignees, or sub-tenants or by any one or
anything suffered or permitted by the Tenant to be upon the herein demised
premises, the Tenant shall pay to the Landlord forthwith upon demand the amount
of such increase whether it is an increase in insurance rates payable by the
Landlord or by any other tenant or occupant of the industrial building or any
part thereof.

(iii)    If any policy of insurance upon the industrial
building or any part thereof or the contents shall be cancelled or refused to be
renewed or granted by an insurer by reason of the use or occupation of the
herein demised premises or any part thereof by the Tenant, or by any of its
officers, directors, agents, servants, licensees, concessionaires, assignees,
sub-tenants or by anyone permitted by the Tenant to be upon the herein demised
premises, the Tenant shall forthwith upon demand remedy or rectify such use or
occupation and if the Tenant shall fail to do so forthwith the Landlord may at
its option terminate this Lease by leaving upon the herein demised premises
notice in writing of such termination and the Tenant shall immediately deliver
upon possession of the herein demised premises to the Landlord. The Landlord may
re-enter and take possession of the herein demised premises and the Tenant shall
thereupon pay all rent and any other payment for which the Tenant is liable
under this lease, apportioned to the date of such termination, together with all
losses, damages, costs of any kind arising out of the Tenant's breach of this
provision and/or the termination of the Lease under this sub-clause (u)(iii).

(iv)    The Tenant shall not do or suffer any waste or damage,
disfiguration or injury to the herein demised premises or the fixtures and
equipment thereof; not permit or suffer any overloading of the floors thereof
and shall not use or permit to be used any part of the herein demised premises
for any dangerous, noxious or offensive smells or odours and shall not do
anything or permit anything to be done upon or about the herein demised premises
nor anything to be brought thereon which the Landlord may reasonably deem to be
a nuisance or which shall conflict with the requirements or regulations of the
Fire Department or the Landlord's insurers, or conflict with any of the rules
and ordinances or any statutes, orders-in-council, regulations, by-laws or
orders of any municipal, provincial, dominion or other governmental authority;
and the Tenant shall take every reasonable precaution to protect the demised
premises and the industrial building from danger of fire, water damage or the
elements, and the Tenant shall not allow any ashes, refuse, garbage or loose,
objectionable material to accumulate in, on or about the herein demised premises
of the industrial building and will at all times keep them in a clean and
wholesome condition; the Tenant shall keep perishable refuse in a properly
refrigerated area provided by the Tenant until such refuse is removed from the
industrial building; all refuse shall be removed by contractors approved by the
Landlord, such approval not to be unreasonably withheld.

(v)    The Tenant shall not install or use any electrical or
other equipment or electrical arrangement which may overload the electrical or
other service facilities unless he does so with the express written consent of
the Landlord and at his own expense makes whatever changes are necessary to
comply with the reasonable and lawful requirements of the Landlord's insurance
underwriters and governmental authorities having jurisdiction and in any event
the Tenant shall make no changes until he first submits plans and specifications
for the same to the Landlord and obtains the Landlord's written approval for
such plans and specifications which will not be unreasonably withheld.

(w)    To pay management fees, salaries and other remuneration
including contributions to the usual fringe benefits, unemployment insurance and
pension plans for the benefit of management and other persons employed to
provide maintenance and operating services provided that no more than once in
each lease year, the Tenant upon reasonable notice to the Landlord shall have
the privilege of auditing the charges levied by the Landlord pursuant to this
paragraph. Provided further that such audit will be done during normal business
hours and at the expense of the Tenants. The fees chargeable pursuant to this
sub-paragraph shall becalculated at three and one-half (3 1/2%) per cent of the
net annual rental.

(x)    All sums, for rent or otherwise, payable to the Lessor
shall bear interest at the rate of 24% per annum from their respective due dates
until the actual dates of payment.

(y)    The Lessee covenants and agrees that the Lessor may, at
its option, apply all sums received from the Lessee to any rent or other amounts
payable hereunder in such order as the Lessor sees fit.

5.    PROVIDED THAT this Lease and every thing herein
contained shall be deemed to be subordinate to any mortgage or charge from time
to time created by the Lessor with respect to the demised premises by way of
first mortgage and the Lessee HEREBY COVENANTS AND AGREES that will promptly at
any time and from time to time, as required by the Lessor during the term
hereof, execute all documents and give all further assurances to this proviso as
may reasonably required to effectuate the postponement of its rights and
privileges hereunder to the holder or holders of any such mortgage or charge,
PROVIDED that such mortgage shall permit the Lessee to continue in quiet
possession of the demised premises in accordance with the terms and conditions
hereof as if such mortgagee from time to time were the Lessor herein, and
PROVIDED FURTHER that if the Lessor shall default in making any payment due
under any such first mortgage, the Lessee may, at its option, make any such
payment directly to the mortgagee, and any such payment shall be deemed to have
been received by the Lessor as rental hereunder.

6.    PROVIDED THAT the Lessee may remove its fixtures.

7.    PROVIDED THAT if during the term hereby created any of
the goods and chattels of the Lessee shall be at any time seized or taken in
execution or in attachment by an creditor of the Lessee, or if a writ of
execution shall be issued against the goods or chattels of the Lessee, or if the
Lessee shall execute any chattel mortgage or bill of sale of any of its goods or
chattels other than in the ordinary course of its business, or other than
in conjunction with an assignment of this Lease, or a subletting of the demised
premises consented to pursuant to the provisions of sub-paragraph (n) of
paragraph 4 hereof, or if the Lessee shall make any assignment for the benefit
of creditors or commit any other act of bankruptcy as defined in The Bankruptcy
Act of Canada or any amendment thereto, or becoming bankrupt or insolvent shall
take the benefit of any Act that may be in force for bankrupt or insolvent
debtors, or shall attempt to abandon the demised premises or to sell or dispose
of its goods or chattels so that there would not in the event of such sale of
disposal be in the opinion of the Lessor a sufficient distress on the premises
for the then accruing rent and monies accrued hereunder as rent, then the
current month's rent together with the rent for the three months next ensuing
and taxes for the then current year, including the local improvement rates and
the Lessee's proportionate share of costs for maintaining the common areas and
facilities (such as taxes, rates and costs, if any, to be reckoned on the rate
for the next preceding year in case the taxes, rates or costs, if any shall not
have been fixed for the then current year), shall immediately become due and
payable and the said term shall at the option of the Lessor forthwith become
forfeited and determined, in which event the Lessor may reenter and take
possession of the demised premises as though the Lessee or any occupant or
occupants of the demised premises was or were holding over after the expiration
of the term without any right whatsoever, PROVIDED and it is hereby agreed that
any obligation for payment to which the Lessee is liable under the terms of this
Lease and including, but without limiting the generality of the foregoing, a
proportionate share of the cost of maintaining the common areas and facilities,
insurance premiums, property taxes, business taxes, rates and other charges as
herein provided shall be treated as rent payable by the Lessee to the Lessor,
and for all purposes of this paragraph if such charges shall then be in arrears,
the same shall be deemed to be rent under the terms of this lease and the same
may be recovered by the Lessor in the same manner as rent as is in this
paragraph.

8.    PROVIDED THAT in case of removal by the Lessee of its
goods and chattels from the premises, the Lessor may follow the same for thirty
(30) days, in the same manner as is provided for in the Landlord and Tenant Act.
Notwithstanding anything contained in the Landlord and Tenant Act, or any other
statute or any other subsequent legislation, none of the goods or chattels of
the Lessee at any time during the continuance of the term hereby granted on the
demised premises shall be exempt from levy by distress for rent in arrears. Upon
any claim being made for any exemption by the Lessee on a distress made by the
Lessor this covenant may be pleased as an estoppel against the Lessee in any
action brought to test the right to the levying upon any such goods. The Lessee
waives any exemption from distress which might have accrued to the Lessee under
the provisions of the Landlord and Tenant Act.

9.    PROVISO for re-entry by the Lessor on non-payment of
rent or non-performance of covenants. In the event that the Lessee shall be in
default of any of his covenants hereunder, excluding the covenant of the Lessee
to pay rent or additional rent, the Lessor shall give to the Lessee notice in
writing stating the said default with reasonably sufficient particulars, and
requiring that the said default be remedied and that if such default is not
remedied by the Lessee within thirty (30) days after the receipt of such notice,
or such longer period as may be reasonably necessary in view of the nature of
the default, the Lessor may at its option either enter into and upon the demised
premises or any part thereof in the name of the whole and have again, repossess,
and enjoy the same as of its former estate and the said Lease shall thereupon
terminate, or itself take steps and to do or cause to be done such things as may
be necessary to remedy and correct such defaults.

10.    PROVIDED THAT should the Lessee remain in possession of
the demised premises after the termination of the original term hereby created,
or any renewal thereof, without other special agreement, it shall be as a
monthly tenant at rental of ONE THOUSAND, NINE HUNDRED AND EIGHTY DOLLARS AND
SEVENTY-FIVE CENTS ($1,980.75) per month, payable on the 1st day of
each and every month, and subject in all respects to the terms of this Lease.

11.    THE LESSOR COVENANTS WITH THE LESSEE:

(a)    For Quiet Enjoyment

(b)    The Lessee shall have the right from time to time to
make alterations and changes in the interior of the demised premises as it may
find necessary for its purposes and at its own expense, including, but without
limiting the generality of the foregoing, the erection of partitions and
installation of lighting fixtures, and provided that such alterations do not
cause irreparable damage to the demised premises, and provided that the same
shall be done and made in a good and workmanlike manner. The plans for such
alterations or changes shall be delivered to the Lessor and the consent of the
Lessor, in writing, shall be obtained, such consent not to be unreasonably or
arbitrarily withheld.

(c)    The Lessee shall have the right at its own expense to
attach, paint or display such signs, signboards, posters, flags, or other
advertisements or decorations in or about the demised premises, PROVIDED that
first it shall have obtained the consent, in writing, of the Lessor thereto,
such consent not to be unreasonably or arbitrarily withheld, AND PROVIDED that
the same shall be removed by the Lessee at the expiration of the term hereof and
it shall thereupon restore the demised premises to their former condition. The
Lessor reserves the right to regulate all signs, signboards, posters, flags,
advertisements or other decorations in its sole and entire discretion in order
to maintain a uniformity in the area and to protect the aesthetics thereof for
the benefit of its own interest and those of the Lessee and other interested
persons, and that the aforesaid covenant by the Lessor, not to unreasonably or
arbitrarily withhold its consent shall be construed accordingly.

(d)    That the demised premises shall be built and
constructed in compliance with all municipal requirements as to zoning and
building restrictions, and in a good and workmanlike manner.

(e)    That upon receipt of notice from the Lessee it will
promptly make such structural repairs to the demised premises as may reasonably
be necessary from time to time.

(f)    That it will repair and maintain the common outside
areas as hereinbefore described.

12.    PROVIDED that if during the term of this Lease:

(a)    The demised premises are totally destroyed or partially
destroyed so as to render the demised premises wholly unfit for occupancy or if
they shall be so badly injured that they cannot be repaired with reasonable
diligence within sixty (60) days of the happening of such injury the Lessor or
Lessee at its option may terminate this Lease as and from the date of such
damage or destruction, in which event the Lessee shall immediately surrender the
premises and all interest therein to the Lessor and the Lessee shall pay rent
only to the time of such surrender, and in the event of termination as aforesaid
the Lessor may re-enter or re-possess the demised premises discharged of this
Lease and may remove all parties therefrom;

(b)    The demised premises are partially or totally destroyed
and can be repaired or replaced with reasonable diligence within sixty (60) days
of the happening of such injury, and if the damage is such as to render the
demised premises wholly unfit for occupancy, the rent shall not run or accrue
after the said injury or while the process of repair is going on, and the Lessor
shall repair the same with all reasonable speed and the rent shall recommence
immediately after such repair shall be completed.

(c)    The demised premises are partially destroyed and can be
repaired with reasonable diligence within sixty (60) days from the happening of
such injury, and if the damage is such that the demised premises can be
partially used until such damage shall have been repaired, the Lessor shall
repair the same with all reasonable speed and the rent shall abate in the
proportion that the part of the demised premises rendered unfit for occupancy
bears to the whole of the demised premises until such repairs shall be
substantially completed.

13.    PROVIDED that any condoning excusing or overlooking by
the Lessor or the Lessee of any default, breach or nonperformance by the Lessee
or the Lessor, respectively, as the case may be, at any time with respect to any
covenants provisos or conditions herein contained shall not operate as a waiver
of the Lessor's or the Lessee's rights respectively hereunder, in respect of any
subsequent default, breach or non-observance so as to defeat or in any way
affect the rights of the Lessor, or subsequent default, breach or
non-observance, and all rights and remedies herein contained of the Lessor or
Lessee, as the case may be, or any rights or remedies available to the Lessor,
or the Lessee, as the case may be, by law, shall be deemed to be cumulative and
not alternative.

14.    THE LESSEE COVENANTS AND AGREES WITH THE LESSOR that
subject as hereinbefore provided, in the event of the Lessee making default in
payment of any sum required to be paid by it under the provisions of this Lease,
the Lessor shall have the right to pay any sums so in default and such sums
shall be recoverable by the Lessor in the same manner as if such sums were rent
in arrears under this Lease and the Lessor shall be entitled to take any action
for the recovery thereof which it may be entitled to take with respect to rent
in arrears under this Lease.

15.    THE LESSEE ACKNOWLEDGES AND AGREES that the Lessor
shall have a right to promulgate rules and regulations which shall apply equally
to all tenants to regulate the use of the common areas and facilities about the
demised premises and to regulate parking thereon and the Lessee shall upon
written notice from the Lessor within five (5) days furnish the Lessor with the
current provincial license number of any vehicles owned or used by employees or
persons connected with the Lessee. The Lessee agrees that for its benefit and
welfare and for the benefit and welfare of other lessees occupying other
premises and using the aforesaid common areas and facilities, such rules and
regulations shall form part of this Lease and shall be binding upon the Lessee.

16.    THE LESSEE COVENANTS AND AGREES WITH THE LESSOR to
indemnify and save harmless the Lessor from any and all liability, costs,
claims, demands, or actions for damages, injury or loss suffered or sustained by
any person or persons in or about the demised premises or any part thereof,
unless caused by the Lessor's negligence or breach of covenant, and for damage
or injury to the property of any person or persons occasioned by the Lessee, its
customers, employees, servants or agents, or by their neglect, default, or
misconduct or as occasioned by reason of any cause or matter whatsoever unless
caused by the Lessor's negligence or breach of contract, and during the whole of
the term hereby demised to insure and keep insured the parties hereto with
respect thereto by maintaining proper policies of public liability and property
damage insurance with a member of the Canadian Underwriters Association in such
amounts as the Lessor may by notice in writing reasonably required, but not
exceeding in the amount of ONE MILLION DOLLARS ($1,000,000.00) for public
liability, and by maintaining proper insurance with a member of the Canadian
Underwriters Association with respect to damage or loss occasioned by the
maintenance or operation of any steam or hot water boiler, or high compression
equipment, in the demised premises, in an amount reasonable and satisfactory to
the Lessor.

18.    The Leasehold improvements installed by the Lessee
shall become the property of the Lessor at the time of termination of this
lease.

19.    The herein demised premises shall be described as Unit
#11.

20.    In order to induce the Landlord to enter into the Lease
dated the 11th day of April, 1995, and made between Landlord and
Automotive Sunroof Company as Tenant, and Ayaz Somani as Guarantor, and for
other good and valuable consideration, the receipt and sufficiency whereof is
hereby acknowledged, the Guarantor hereby covenants with and in favour of the
Landlord that:

(i)    The Guarantor hereby agrees with the landlord that up
until May 30, 1997, during the term of the Lease shall duly perform and observe
each and every covenant, obligation and agreement in the Lease on the part of
the Tenant to be performed and observed, including the payment of rent and all
other payments agreed to be paid or payable under the Lease on the days and at
the times and in the manner therein specified, and that if for any reason
including the insolvency or bankruptcy of the Tenant, the Tenant shall fail to
pay the rent or other sums provided to be paid by the Tenant under the Lease as
and when they are provided to be due and payable or makes default in the
performance or observance of any of the covenants, obligations or agreements
which under the terms of the Lease are to be performed or observed by the
Tenant, the Guarantor shall forthwith pay to the Landlord on demand such rent
and other sums in respect of which arise in consequence of the non-observance or
non-performance of any of the said covenants, obligations or agreements.

(ii)    The Guarantor is jointly and severally bound with the
Tenant for the Fulfillment of all covenants, obligations and agreements of the
Tenant under the Lease up to and including May 31, 1997, at which time the
guaranty shall terminate and be of no force or effect. In the enforcement of its
rights hereunder, the Landlord may proceed against the Guarantor as if the
Guarantor were named as a Tenant under the Lease.

(iii)    No neglect or forbearance of the Landlord
endeavouring to obtain payment of the rent reserved in the Lease or other
payments required to be made under the provisions of the Lease as and when they
become due, no delay of the Landlord in taking any steps to enforce performance
or observance of the several covenants, obligations or agreements contained in
the Lease to be performed, or observance by the Tenant, no extension or
extensions of time which may be given by the Landlord from time to time to the
Tenant and no other act or failure to act of or by the Landlord shall release,
discharge or in any way reduce the obligations of the Guarantor under its
covenants herein contained, provided that the Landlord shall advise the
Guarantor in writing as soon as possible of any non-observance or
non-performance by the Tenant of any of the covenants, obligations or agreements
in the Lease in order to provide the Guarantor with an opportunity to limit her
liability and otherwise protect her interests.

21.    The Lessor shall at its own expense, complete prior to
May 15, 1995, the following:

(a)    warehouse in vacant broomswept condition;

(b)    ensure shipping and man doors are in good working order
and weather stripped;

(c)    ensure warehouse lights in good working order with one
complete band of double lights adding four additional fixtures per bay (a total
of eight);

(d)    to ensure warehouse is adequately heated; re-install
second warehouse heater;

(e)    washrooms to be painted, cleaned and in good working
order - two 2-piece washrooms; complete with mirrors, working fans, cap existing
drain above floor;

(f)    install new carpet, colour to be chosen by the Lessee
from the Lessor's standard samples;

(g)    paint office area, colour to be chosen by the Lessee
from the Lessor's standard samples;

(h)    100 ampere - 3 phase - 3 wire complete with set down
transformer and panenl, ensure electrical in good working order;

(i)    alter office area as per diagram, see Schedule "C";

(j)    install sound-proof insulation within demising wall
between office and warehouse and sound-proof insulation above T-bar ceiling;

(k)    supply floor drain in Unit 11, rear warehouse, location
as mutually agreed upon.

22.    It is agreed to by both parties that the Lessee shall,
at its own expense, construct a storage area in the warehouse as per Schedule
"D". If required, the Lessee shall remove said structure at the end of its lease
term. Said structure shall be the Lessee's sole responsibility and shall conform
with all current codes and by-laws as required by the City of Scarborough or the
Fire Department. The Lessee shall remove this structure immediately upon notice.

        IN WITNESS WHEREOF the parties
hereto have hereunto affixed their respective corporate seals under the hands of
their duty attended respective signing offices duly authorized in that behalf.

	SIGNED, SEALED AND DELIVERED   	)   	AUTOMOTIVE SUNROOF COMPANY
	in the presence of   	)
	   	)   
	   	)   	Per: _____________________________
	   	)   	TENANT
	   	)   
	   	)   	_________________________________
	   	)   	AYAZ SOMANI, GUARANTOR
	   	)   
	   	)   	SCARBOROUGH FINANCIAL SERVICES LIMITED
	   	)   
	   	)   
	   	)   	Per: ______________________________
	   	   	LANDLORD

SCHEDULE "C"

RULES AND REGULATIONS

1.    The sidewalks, entrances, elevators, stairways,
corridors and fire escapes of the building shall not be obstructed by the Lessee
or used by him for any purpose other than for ingress and egress to and from the
demised premises. The Lessee shall not place or allow to be placed in the
hallways, corridors any waste paper, dust, garbage, refuse or anything else
whatsoever that would obstruct them or tend to make them appear unclean or
untidy. Nothing shall be thrown by the Lessee or his employees out of the
windows or doors or down the passages or sky lights of the building.

2.    The Lessee shall not erect or affix any counter or other
fixture in or upon the demised premises without the written consent of the
Lessor, provided, however, that any new counter or other fixture and any change
in location or style or any existing counter or other fixture shall be in
keeping with the general appearance of the building and of the demised premises.

3.    Business machines, filing cabinets, heavy merchandise or
other articles liable to overload, injure or destroy any part of the building
shall not be taken into it without the written consent of the Lessor, and the
Lessor shall in any case retain the right to prescribe the weight and proper
position of all such articles and the times and routes for moving them into or
out of the building; the cost of repairing any damage done to the building by
the moving or keeping of any such articles on the demised premises shall be paid
by the Lessee.

4.    The Lessee shall not nail, paint, drill into or in any
way deface the walls, ceilings, partitions, floors or other parts of the demised
premises and the building except with the prior written consent of the
Lessor and as it may direct.

5.    All work in connection with additions or changes
requested by the Lessee to the lighting fixtures, air conditioning apparatus or
other- mechanical electrical apparatus of the building shall, if the Lessor so
elects, be performed for the Lessee by the Lessor and, if the Lessor does not so
elect, shall not be performed except with the prior written consent of the
Lessor and in any event the cost of such work shall be paid by the Lessee.

6.    All connections to the underfloor duct electrical system
required by the Lessee will be applied and installed by the Lessor at the
Lessee's expense.

7.    The Lessee and his employees shall not in any way
interfere or annoy other occupants of the building or those having business with
them.

8.    The Lessee shall not place any additional lock upon any
door of the building without the written consent of the Lessor.

9.    The Lessee shall give the Lessor prompt written notice
of any accident or any defect in the plumbing, heating air conditioning,
mechanical or electrical apparatus or any other part of the building.

10.    No bicycles or other vehicles and no dog or other
animal or bird shall be brought into or kept in the building.

11.    The Lessee shall not install or permit the installation
of any machine dispensing or permit the sale of any food or beverage from the
demised premises without the approval of the Lessor or in contravention of any
regulations fixed or to be fixed by the Lessor.

12.    The Lessee will not make or permit any improper noise
in the building and will not place any radio or television antenna. on the roof
or on any part of the inside or outside of the building other than the inside of
the demised premises; and will not operate or permit to be operated any musical
or sound producing instrument or device inside or outside the demised premises
which may be heard outside the demised premises; and will not operate any
electrical device from which electrical waves may interfere or impair radio or
television broadcasting or reception from or in the building or elsewhere.

13.    No one shall use the demised premises for sleeping
quarters.

14.    The Lessee shall not permit any cooking in the demised
premises without the written consent of the Lessor.

15.    Any hand trucks or similar equipment used in the
building shall be equipped with rubber tires, side guards and such other
safeguards as the Lessor shall reasonably require.

RENEWAL

THIS LEASE made the 12th day of January, 2000. 

BETWEEN 

	 	SCARBOROUGH FINANCIAL SERVICES LIMITED 
	 	Hereinafter called the "Landlord" 
	- and - 	 
	 	AUTOMOTIVE SUNROOF COMPANY
	 	Hereinafter called the "Tenant" 

        WHEREAS by a Lease dated the 11th
day of April, 1995, (hereinafter called the "Original Lease"), a copy of which
is attached hereto as Schedule" A ", made between the Landlord and the Tenant,
The Landlord leased to the Tenant the premises known as Unit #11,595 Middlefield
Road, Scarborough, containing a total of 6255 square feet, and more particularly
described in the Schedule(s) to the Original Lease for a term of five (5) years
at the rental provided for therein and subject to the terms and conditions set
forth therein; 

        AND WHEREAS the Tenant has
requested that the Landlord grant to him a Renewal Lease for the premises being
Unit #11,595 Middlefield Road for a term of three (3) years from June 15,2000,
until June 14,2003, on the terms hereinafter set forth and the Landlord has
agreed to do so: 

1.    WITNESSETH that in consideration of the rents, covenants
and agreements hereinafter reserved on the part of the Tenant, the Landlord
hereby demises and leases to the Tenant the premises leased pursuant to the
Original Lease subject to and with the benefit of the Tenant's and the
Landlord's covenants and the provisos and conditions contained in the Original
Lease; except as otherwise provided herein. 

        YIELDING AND PAYING June 15,2000
to the 14th day of June, 2003 unto the Landlord, without any deduction, set-off
or abatement whatsoever, in lawful money of Canada, the sum of THlRTY- TWO
THOUSAND, EIGHT HUNDRED AND THIRTY -EIGHT DOLLARS AND SEVENTY -FIVE CENTS
($32,83S.75) per annum, payable at par at Stouffville in equal monthly
installments of TWO THOUSAND, SEVEN HUNDRED AND THIRTY -SIX DOLLARS AND FIFTY
-SIX CENTS ($2,736.56) net, the first payment to made on the 15th day of June,
2000. 

        The LANDLORD and TENANT hereby
mutually covenant that they will perform and observe the several covenants,
provisos and stipulations in the Original Lease as fully as if such covenants,
provisos and stipulations had been repeated herein in full with such
modifications only as are provided to make them applicable to this Renewal
Lease, provided that if the term of years created by the Original Lease shall be
determined by the Landlord pursuant to any right vested in the landlord by
reason of the Original Lease, this Renewal Lease shall not commence and the
right of the Tenant hereunder shall become void. 

[GRAPHIC OMITTED] 

LESSOR'S WORK: 

The Lessor, at its expense shall do the following: 

1. Place the carpet in the Office area, colour to be chosen by the Lessee
from the Lessor's standard samples;

2. Replace damaged/missing ceiling tiles and damaged plastic fluorescent
light lens covers; 

3. Remove office wall and doorway as per attached diagram, patch and repair
wall as required at tenant's expense; 

4. Paint all office walls and washroom walls, colour to be chosen by Lessee
from the Lessor's standard samples; 

5. Repair office incremental heating/air-conditioning units as required. 

 

IN WITNESS WHEREOF the parties hereto have hereunto set their hands and
seals. 

SIGNED, SEALED AND DELIVERED 

in the presence of: 

	 	)	AUTOMOTIVE SUNROOF COMPANY
	 	)	 
	 	)	 
	 	)	Per: 
	 	)	TENANT
	 	)	 
	 	)	 
	 	)	 
	 	)	SCARBOROUGH FINANCIAL SERVICES LIMITED 
	 	)	 
	 	)	) Per: 
	 	)	LANDLORD

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00042-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00042-of-00352.parquet"}]]