Document:

EXHIBIT 10.15

                                LICENCE TO OCCUPY

THIS SUBLEASE made the 1st day of November, 2004,

BETWEEN:
             RS Group of Companies, Inc.
            (the "Sublandlord")

AND
             Strategy Insurance (Canada) Limited
            (the "Subtenant")

WHEREAS:

      1.    RS Group of Companies, Inc. has leased a rentable area of
            approximately 5000 square feet located on the Seventh (7) floor at
            Suite 710 of the building at 200 Yorkland Boulevard (the "Premises")
            from Morguard Real Estate Investment Trust ("Morguard");

      2.    The Sublandlord has agreed to sublease to the Subtenant the Premises
            on the terms and conditions contained herein; and

      3.    The original lease is attached at Schedule "A"

NOW THEREFORE in consideration of the mutual covenants and agreements herein
contained, and of other good and valuable consideration (the receipt and
sufficiency of which are hereby acknowledged), the parties hereby agree and
covenant as follows:

1.    SUBLEASE

      The Sublandlord hereby demises and subleases the Premises to the
Subtenant, to have and to hold the Premises (unless sooner terminated pursuant
to other provisions hereof), for the period of 5 years and 0 months, less one
day (the "Term"), from and including November 1, 2004 to and including October
31, 2009.

2.    BASIC RENT

      (1) The Subtenant covenants and agrees to pay, during the Term, to the
Sublandlord, annual base license to occupy of Seventy Four Thousand Nine Hundred
Eighty Four dollars and Four cents ($75,984.04) in the first year, Eighty Four
Thousand Three Hundred Fifty Seven dollars ($84,357.00) in each of the second
and third years, Ninety Three Thousand Seven Hundred Twenty Nine dollars and
Ninety Six cents ($93,729.96) in each of the fourth and fifth years payable in
equal monthly installments for each year commencing on November 1, 2004, without
any prior demand therefor and without any abatement or set-off whatsoever
("Basic Rent").

      (2) If the Term commences on any day other than the first (1st) day of a
month or ends on any day other than the last day of a month, Basic Rent and
Additional Rent, if any, for such fraction of a month shall be adjusted on a per
diem basis, based upon a period of 365 days.

<PAGE>

      (3) Sublandlord indemnifies the Subtenant from any liability under its
lease agreement with Morguard.

4.    SUBTENANT'S GENERAL COVENANTS

      The Subtenant covenants with the Sublandlord:

      (a)   to pay Basic Rent and Additional Rent, as well as any taxes imposed
            thereon, as herein provided;

      (b)   to perform or cause to be performed all of the covenants of the
            Sublandlord as Tenant under the Head Lease, including, without
            limitation, the performance of the Tenant's repairs therein but
            excluding the obligations of the Sublandlord as to Rent payable as
            Tenant under the Head Lease (the obligations of the Subtenant in
            that respect being the payment of Basic Rent and Additional Rent for
            the Premises as provided herein);

      (c)   not to do or omit to be done any act or thing upon the Premises
            which would cause a breach of any of the Sublandlord's obligations
            as Tenant under the Head Lease;

      (d)   not to use the Premises for any purpose other than such uses as
            permitted in the Head Lease;

      (e)   at its own expense, to repair and maintain and keep the Premises and
            every part thereof and improvements placed therein in good order and
            condition, and promptly make all needed repairs and replacements in
            accordance with the terms of the Head Lease; and

      (f)   not to assign, sublet or part with or share possession of any part
            of the Premises or allow the same to be used or occupied by any
            persons other than the Subtenant without the prior consent in
            writing of the Sublandlord, which consent may not be unreasonably
            withheld, and of the Head Landlord in accordance with the provisions
            of the Head Lease.

5.    INSURANCE

      The Subtenant shall take out and keep in force during the Term such
insurance policies in respect of the Premises as shall comply with the
obligations of the Sublandlord as Tenant under the Head Lease, and shall be
subject to the same obligations and the same limitations of liability with
respect to damage, loss or injury as are set out in the Head Lease. The
Subtenant shall name the Sublandlord and the Head Landlord as additional named
insureds, as their interests may appear, in such insurance policies. The
Subtenant shall provide, upon the request of the Sublandlord, certificates of
its insurance policies and shall, throughout the Term, provide evidence of
renewal or replacement of same.

6.    COVENANTS OF THE SUBLANDLORD

      The Sublandlord covenants with the Subtenant:

      (a)   for quiet enjoyment;

                                       2
<PAGE>

      (b)   to pay the Rent reserved by the Head Lease; and

      (c)   to enforce, for the benefit of the Subtenant and other lawful
            occupants of the Premises, the obligations of the Head Landlord
            under the Head Lease with the intent that the benefits of such
            covenants shall be enjoyed by the Subtenant and its permitted
            subtenants and assigns; and, notwithstanding anything else herein
            contained, the obligations of the Sublandlord with respect to the
            covenants and obligations of the Head Landlord are limited to the
            foregoing.

7.    ABATEMENT AND TERMINATION

      In the event of damage or destruction to the Premises or the building of
which the Premises forms a part by any casualty or occurrence:

      (a)   Basic Rent and Additional Rent hereunder shall abate if and to the
            extent Rent under the Head Lease abates under the terms of the Head
            Lease;

      (b)   this Sublease shall terminate if the Head Landlord or the
            Sublandlord shall become entitled to terminate and shall terminate
            the Head Lease; and

      (c)   the Subtenant, if the Premises are restored by the Head Landlord in
            accordance with the provisions of the Head Lease, shall perform all
            of the obligations of the Sublandlord with respect to the repair and
            restoration of the Premises.

8.    FIXTURES AND IMPROVEMENTS, ETC.

      (1) The rights and obligations of the Subtenant with respect to the
installation, alteration or removal of fixtures and improvements shall be
governed by the applicable provisions of the Head Lease, it being agreed that
all fixtures and improvements shall be deemed to comply with the provisions of
this Sublease if they are made in compliance with the provisions of the Head
Lease, and the approval of the Head Landlord and the Sublandlord thereto (such
approval not to be unreasonably withheld) shall have been obtained. The
Subtenant shall pay all costs and fees chargeable by the Head Landlord under the
Head Lease with respect to alterations or changes to the Premises.

      (2) At the end of the Term the Subtenant shall surrender and yield up the
Premises in such state as the Sublandlord is required to surrender and yield up
the Premises at the end of the term of the Head Lease. Notwithstanding the
foregoing, the Subtenant shall not be required to restore the Premises to its
original condition as at the commencement of the term of the Head Lease nor to
remove any leasehold improvements that existed prior to the Term, but shall, at
the Sublandlord's option, at the expiration of the Term or earlier termination
of this Sublease, restore the Premises to its original condition as at the
commencement of the Term and/or remove any leasehold improvements installed by
or for the Subtenant, subject to the rights of the Head Landlord under the Head
Lease. The Subtenant's right to remove fixtures shall be limited to removal of
its fixtures and not those of the Sublandlord.

                                       3
<PAGE>

9.    CONDITION OF PREMISES

      It is understood and agreed that the Subtenant shall accept the Premises
in an "as is" condition, and the Subtenant acknowledges that the Sublandlord has
made no representations or warranties with respect to the condition thereof.

10.   NOTICE

      (1) Any notice required or contemplated by this Sublease shall be given in
writing and either delivered or mailed by prepaid registered mail to:

the Sublandlord at:  200 Yorkland Boulevard, Suite 200
                     Toronto, Ontario
                     M2J 5C1
                     Fax: (416) 391-1445

                     Attention: General Counsel

the Subtenant at:    200 Yorkland Boulevard, Suite 710
                     Toronto, Ontario
                     M2J 5C1
                     Fax: (416) 391-4985

                     Attention: General Counsel

      (2) Every such notice shall be deemed to have been given when delivered
or, if mailed as aforesaid, on the fourth business day next following the date
of mailing. The Sublandlord or Subtenant may from time to time, by notice in
writing to the other, designate another address in Canada as the address to
which notices are to be mailed to it.

11.   APPLICATION OF HEAD LEASE

      (1) The Subtenant acknowledges and agrees that this Sublease is subject to
and subordinate to the terms of the Head Lease and the Subtenant is subject to
all the rights and privileges of the Head Landlord under the Head Lease in the
same manner and to the same extent as the Sublandlord, except as provided
herein.

      (2) Except as herein expressly provided, or as modified by the provisions
of this Sublease, all terms, conditions, covenants and agreements contained in
the Head Lease shall apply to and be binding upon the parties hereto, and their
respective successors and permitted assigns, the appropriate changes of
reference being deemed to have been made (that is, every reference therein to
"Landlord" being changed on such incorporation to a reference to the Sublandlord
and every reference to the "Tenant" being changed on such incorporation to a
reference to the Subtenant, where the context requires), with the intent that
such provisions shall govern the relationship in respect of such matters as
between the Sublandlord and the Subtenant.

                                       4
<PAGE>

      (3) Capitalized words not otherwise defined herein shall have the meaning
ascribed to them in the Head Lease.

      (4) Whenever, under the terms of the Head Lease, the consent or approval
of the Head Landlord is required, the Subtenant shall be required to obtain both
the consent or the approval of the Head Landlord and the Sublandlord.

12.   MISCELLANEOUS

      (1) The Subtenant acknowledges and agrees that it has no rights or options
to renew the Term of the Sublease and that nothing in this Sublease shall
obligate the Sublandlord to exercise any option to renew, option to lease
additional space or other discretionary right under the Head Lease.

      (2) The Sublandlord and the Subtenant hereby agree, from time to time and
at any time hereafter, to execute such further assurances as may be necessary or
desirable to more effectively sublease the interests of the Sublandlord in the
Head Lease together with all benefits and advantages to be derived therefrom and
to carry out the true intention of this Sublease.

      (3) The submission of this Sublease for examination by the Subtenant,
whether or not executed by the Sublandlord, shall not constitute an offer or
agreement, and there shall be no obligation on the part of the Sublandlord to
the Subtenant hereunder until the Sublease has been fully executed and delivered
by both the Sublandlord and the Subtenant.

      (4) Unless the context otherwise requires, words importing the singular in
number only shall include the plural and vice versa, words importing the use of
gender shall include the masculine, feminine and neuter genders, and words
importing persons shall include individuals, corporations, partnerships,
associations, trusts, unincorporated organizations, governmental bodies and
other legal or business entities. If this Sublease has been executed by more
than one party as Subtenant, their obligations hereunder shall be joint and
several, and all references to the "Subtenant" herein shall refer to all such
parties, as the context requires.

      (5) This Sublease may be executed by the parties hereto in separate
counterparts, each of which so executed shall be deemed to be an original. Such
counterparts together shall constitute one and the same instrument and,
notwithstanding the date of execution, shall be deemed to bear the effective
date set forth above.

      (6) Delivery of an executed copy of a signature page to this Sublease by
facsimile transmission shall be effective as delivery of an original executed
copy of this Sublease, and each party hereto undertakes to provide each other
party with a copy of the Sublease bearing original signatures forthwith upon
demand.

      (7) The rights and liabilities of the parties shall enure to the benefit
of their respective legal representatives, heirs, executors, administrators,
successors and permitted assigns, as the case may be.

                                       5
<PAGE>

      IN WITNESS WHEREOF the parties hereto have executed this Sublease.

                                   RS GROUP OF COMPANIES, INC.

                                   Per: /s/ Kenneth Min
                                        ----------------------------------------
                                        Name:  Kenneth Min
                                        Title: President
                                        I have authority to bind the Corporation

                                   STRATEGY INSURANCE (CANADA) LIMITED

                                   Per: /s/ Edward Kruk
                                        ----------------------------------------
                                        Name:  Edward Kruk
                                        Title: CFO
                                        I have authority to bind the Corporation

                                       6

<PAGE>

                                  SCHEDULE "A"

                LEASE OF OFFICE SPACE MULTI-TENANT OFFICE PROJECT

<PAGE>

                LEASE OF OFFICE SPACE MULTI-TENANT OFFICE PROJECT

                      MORGUARD REAL ESTATE INVESTMENT TRUST

                                   (Landlord)

                                     - AND -

                           RENT SHIELD CANADA LIMITED

                                    (Tenant)

LEASE PREMISES:
200 YORKLAND BOULEVARD
SUITES 700 AND 710
TORONTO, ONTARIO
M2J 5C1

<PAGE>

                                TABLE OF CONTENTS

                                                                            Page

ARTICLE 1.00      DEFINITIONS..................................................4
    1.01     Definitions.......................................................4

ARTICLE 2.00      GRANT OF LEASE AND GENERAL COVENANTS.........................4

    2.01     Grant.............................................................4
    2.02     Landlord's General Covenants......................................4
    2.03     Tenant's General Covenants........................................4

ARTICLE 3.00      TERM AND POSSESSION..........................................5
    3.01     Term..............................................................5
    3.02     Early Occupancy...................................................5
    3.03     Delayed Possession................................................5
    3.04     Acceptance of Leased Premises.....................................5

ARTICLE 4.00      RENT.........................................................5
    4.01     Rent..............................................................5
    4.02     Security Deposit..................................................6
    4.03     Intent............................................................6
    4.04     Payment of Rent...................................................6
    4.05     Partial Month.....................................................7
    4.06     Payment of Tenant's Occupancy Costs...............................7
    4.07     Resolution of Disputes............................................9
    4.08     Area Determination................................................9
    4.09     Vacancy...........................................................9
    4.10     Method of Payment................................................10

ARTICLE 5.00      USE AND OCCUPATION..........................................10
    5.01     Use of Leased Premises...........................................10
    5.02     Compliance with Laws.............................................10
    5.03     Prohibited Uses..................................................11
    5.04     Common Elements..................................................12
    5.05     Hazardous Use....................................................12
    5.06     Tenant's Security Interest.......................................12
    5.07     Rules and Regulations............................................12

                                      -i-

<PAGE>

                                TABLE OF CONTENTS
                                  (continued)
                                                                            Page

    5.08     Permitted Signs..................................................12
    5.09     Prohibited Signs.................................................13
    5.10     Window Coverings.................................................13
    5.11     Parking..........................................................13
    5.12     Authorization of Enquiries.......................................14
    5.13     Records..........................................................14
    5.14     Overloading......................................................14
    5.15     Telecommunications...............................................14

ARTICLE 6.00      SERVICES, MAINTENANCE, REPAIR AND ALTERATIONS BY LANDLORD...15
    6.01     Operation of Project.............................................15
    6.02     Building Services and Facilities.................................15
    6.03     Maintenance, Repair and Replacement..............................16
    6.04     Alterations/Renovations by Landlord..............................17
    6.05     Access by Landlord...............................................18
    6.06     Energy Conservation..............................................18
    6.07     Supervision and Extended Services................................18
    6.08     Landlord's Work..................................................18
    6.09     Control by Landlord..............................................18

ARTICLE 7.00      PAYMENT FOR SERVICES AND MAINTENANCE, REPAIR AND ALTERATIONS
                  BY TENANT...................................................19
    7.01     Utilities........................................................19
    7.02     Lights...........................................................19
    7.03     Heating, Ventilation and Air Conditioning........................19
    7.04     Alterations by Tenant............................................20
    7.05     Tenant's Trade Fixtures and Personal Property....................21
    7.06     Maintenance and Repair...........................................21
    7.07     Inspection.......................................................21
    7.08     Failure to Maintain..............................................22
    7.09     Liens............................................................22
    7.10     Roof.............................................................22

                                      -ii-

<PAGE>

                                TABLE OF CONTENTS
                                  (continued)
                                                                            Page

ARTICLE 8.00      TAXES.......................................................22
    8.01     Taxes Payable by Landlord........................................22
    8.02     Taxes Payable by Tenant..........................................23
    8.03     Tax Increases Attributable to Tenant.............................23
    8.04     GST..............................................................23
    8.05     Landlord's Election..............................................23
    8.06     Right to Contest.................................................23

ARTICLE 9.00      INSURANCE, LIABILITY AND ENVIRONMENTAL......................24
    9.01     Landlord's Insurance.............................................24
    9.02     Tenant's Insurance...............................................25
    9.03     Placement of Tenant's Insurance by Landlord......................26
    9.04     Limitation of Landlord's Liability...............................27
    9.05     Environmental Issues.............................................27

ARTICLE 10.00     DAMAGE AND DESTRUCTION......................................28
    10.01    Limited Damage to Leased Premises, Access or Services............28
    10.02    Major Damage to Leased Premises..................................29
    10.03    Damage to Building...............................................29
    10.04    No Abatement.....................................................30
    10.05    Notify Landlord..................................................30
    10.06    Expropriation....................................................30

ARTICLE 11.00     DEFAULT.....................................................31
    11.01    Arrears..........................................................31
    11.02    Costs of Enforcement.............................................31
    11.03    Performance of Tenant's Obligations..............................31
    11.04    Events of Default................................................32
    11.05    Remedies on Default..............................................33
    11.06    Availability of Remedies.........................................34
    11.07    Waiver...........................................................34
    11.08    Waiver of Exemption and Redemption...............................35
    11.09    Companies' Creditors Arrangement Act.............................35

                                     -iii-

<PAGE>

                                TABLE OF CONTENTS
                                  (continued)
                                                                            Page

ARTICLE 12.00     ASSIGNMENT SUBLETTING AND OTHER TRANSFERS...................35
    12.01    Request for Consent..............................................35
    12.01(A) Permitted Tenants:...............................................36
    12.02    Basis for Consent................................................36
    12.03    Terms and Conditions Relating to Consents........................37
    12.04    Subsequent Transfers.............................................38
    12.05    Profit Rents upon Transfers......................................38
    12.06    Advertising......................................................38
    12.07    Grant of Security Interest by Transferee.........................38

ARTICLE 13.00     TRANSFERS BY LANDLORD.......................................39
    13.01    Sale, Conveyance and Assignment..................................39
    13.02    Effect of Transfer...............................................39
    13.03    Subordination....................................................39
    13.04    Attornment.......................................................39
    13.05    Effect of Attornment.............................................39
    13.06    Repurchase.......................................................39

ARTICLE 14.00     SURRENDER...................................................40
    14.01    Possession and Restoration.......................................40
    14.02    Tenant's Trade Fixtures and Personal Property....................41
    14.03    Overholding......................................................41

ARTICLE 15.00     GENERAL.....................................................41
    15.01    Estoppel Certificates............................................41
    15.02    Entire Agreement.................................................42
    15.03    No Registration of Lease or Notices..............................42
    15.04    Project Name and Trademarks......................................42
    15.05    Demolition / Substantial Renovation..............................42
    15.06    Relocation.......................................................42
    15.07    "For Lease" Signs................................................42
    15.08    Unavoidable Delays...............................................42
    15.09    Limitation of Recourse...........................................43

                                      -iv-

<PAGE>

                                TABLE OF CONTENTS
                                  (continued)
                                                                            Page

    15.10    Notice...........................................................43
    15.11    Delegation of Authority..........................................44
    15.12    Relationship of Parties..........................................44
    15.13    Governing Law....................................................44
    15.14    Amendment or Modification........................................44
    15.15    Legal and Administration Costs...................................44
    15.16    Construction.....................................................44
    15.17    Captions and Headings............................................44
    15.18    Interpretation...................................................44
    15.19    Time of the Essence..............................................45
    15.20    Successors and Assigns...........................................45
    15.21    Counterparts.....................................................45
    15.22    Further Schedules................................................45
    15.23    Independent Legal Advice.........................................45
    15.24    No Offer.........................................................45
    15.25    Landlord's Security Interest.....................................45
    15.26    Survival of Covenants and Indemnities............................46
    15.27    Exculpatory Provisions...........................................46
    15.28    Brokerage Commissions............................................47
    15.29    Covenants to be Performed at Landlord's Option...................47
    15.30    Radiation........................................................47

SCHEDULES

    Schedule "A"   - Plan Showing Leased Premises
    Schedule "A-1" - Legal Description of Land
    Schedule "B"   - Definitions
    Schedule "C"   - Rules and Regulations
    Schedule "D"   - Landlord's Work
    Schedule "E"   - Additional Covenants, Agreements and Conditions (if any)
    Schedule "G"   - Security Interest - Remedies on Default
    Schedule "H"   - Contents of Leased Premises

                                      -v-

<PAGE>

                                   TERM SHEET

<TABLE>
<CAPTION>
<S>                                     <C>
(a)   Address of Landlord's Manager:    c/o Morguard Investments  Limited
                                        800 - 55 City Centre Drive
                                        Mississauga, ON L5B 1M3

                                        Telephone:  905-281-3800

                                        Fax Number:  905-281-4826

                                        Attention:  Vice President, Property Management,
                                                    Office/Industrial, Eastern Canada

(b)   Landlord's "Environmental Contact": Toronto Commercial Operations Manager

(c)   Landlord's Head Office:           c/o Morguard Investments Limited
                                        800 - 55 City Centre Drive
                                        Mississauga, ON L5B 1M3

                                        Attention:  President

                                        Telephone:  905-281-3800

                                        Fax Number:  905-281-1800

(d)   Morguard Realty Holdings Inc. holds registered title to the Project as
      nominee of the Landlord

2.    TENANT (legal name):              RENT SHIELD CANADA LIMITED

(a)   Address of Leased Premises:       200 Yorkland Boulevard
                                        Suites 700 and 710 Toronto,
                                        Ontario M2J 5C1

                                        Attention:  Sandi Sordi

                                        Telephone:  (416)

                                        Fax Number:  (416)

(b)   Tenant's Head Office:             200 Yorkland Blvd,
                                        Suite 200
                                        Toronto, Ontario
                                        M5J 5C1

                                        Telephone:  (416) 391-4233

                                        Fax Number:  (416) 391-1445
</TABLE>

<PAGE>

3.    Project Name and Address:         200 Yorkland Boulevard

4.    Leased Premises:                  Attached as Schedule "A" to the Lease is
                                        a plan of the Project showing the Leased
                                        Premises   by   hatching.   The   Leased
                                        Premises are  designated as Suites 700 &
                                        710.

5.    Rentable Area of Leased Premises: Approximately 9,373 square feet, subject
                                        to  adjustment  in  accordance  with the
                                        definition  of Rentable Area and Section
                                        4.08.

6.    (a)   Security Deposit:           $0.00 (Section 4.02)

      (b)   Other Deposit:              $0.00

7.    Term:                             5 years, 0 months and 0 days.

      (a)   First Day of Term:          the 1st day of November, 2004

                                        (hereinafter    referred   to   as   the
                                        "Commencement Date")

      (b)   Last Day of Term: the 31st day of October, 2009.

8.    Basic   Rent:                     The Tenant  shall pay to the Landlord as
                                        annual  basic rent (the  "Basic  Rent"),
                                        without   any   deduction,   set-off  or
                                        abatement, as follows:

      (a)                               for  Lease  Year  November  1,  2004  to
                                        October   31,   2005,   the   amount  of
                                        $74,984.04  per annum  payable  in equal
                                        consecutive   monthly   installments  of
                                        $6,248.67  each in  advance on the first
                                        day of each  and  every  calendar  month
                                        from the  Commencement  Date, based upon
                                        an annual  rate of $8.00 per square foot
                                        per  annum of the  Rentable  Area of the
                                        Leased Premises;

      (b)                               for  Lease  Year  November  1,  2005  to
                                        October   31,   2006,   the   amount  of
                                        $84,357.00  per annum  payable  in equal
                                        consecutive   monthly   installments  of
                                        $7,029.75  each in  advance on the first
                                        day of each  and  every  calendar  month
                                        from the  Commencement  Date, based upon
                                        an annual  rate of $9.00 per square foot
                                        per  annum of the  Rentable  Area of the
                                        Leased Premises;

      (c)                               for  Lease  Year  November  1,  2006  to
                                        October   31,   2007,   the   amount  of
                                        $84,357.00  per annum  payable  in equal
                                        consecutive   monthly   installments  of
                                        $7,029.75  each in  advance on the first
                                        day of each  and  every  calendar  month
                                        from the  Commencement  Date, based upon
                                        an annual  rate of $9.00 per square foot
                                        per  annum of the  Rentable  Area of the
                                        Leased Premises;

                                       2
<PAGE>

      (d)                               for  Lease  Year  November  1,  2007  to
                                        October   31,   2008,   the   amount  of
                                        $93,729.96  per annum  payable  in equal
                                        consecutive   monthly   installments  of
                                        $7,810.83  each in  advance on the first
                                        day of each  and  every  calendar  month
                                        from the  Commencement  Date, based upon
                                        an annual rate of $10.00 per square foot
                                        per  annum of the  Rentable  Area of the
                                        Leased Premises; and

      (e)                               for  Lease  Year  November  1,  2008  to
                                        October   31,   2009,   the   amount  of
                                        $93,729.96  per annum  payable  in equal
                                        consecutive   monthly   installments  of
                                        $7,810.83  each in  advance on the first
                                        day of each  and  every  calendar  month
                                        from the  Commencement  Date, based upon
                                        an annual rate of $10.00 per square foot
                                        per  annum of the  Rentable  Area of the
                                        Leased Premises.

9.    Use of Leased Premises:           The Leased Premises shall be used solely
                                        for the  purpose of  general  office for
                                        the  business  of  insurance  and for no
                                        other purpose.

10.   Environmental Issues:             Lease Section 9.05:
                                        Applies X

12.   Additional  Covenants,  Agreements and Conditions (if any) listed here are
      more particularly set out in Schedule "E".

      1.    PARKING
      2.    OPTION
      3.    EARLY OCCUPANCY
      4.    LEASEHOLD IMPROVEMENTS
      5.    CROSS DEFAULT

                                       3
<PAGE>

                              LEASE OF OFFICE SPACE

                          MULTI-TENANT OFFICE BUILDING

THIS LEASE is made as of the 16th day of June, 2004.

BETWEEN:

                      MORGUARD REAL ESTATE INVESTMENT TRUST

                                (the "Landlord")

                                                               OF THE FIRST PART

                                     - and -

                           RENT SHIELD CANADA LIMITED
        a company incorporated under the laws of the Province of Ontario

                                 (the "Tenant")

                                                              OF THE SECOND PART

IN CONSIDERATION of the mutual covenants  contained  herein,  the parties hereby
agree as follows:

                            ARTICLE 1.00 DEFINITIONS

1.01 Definitions. In this Lease the terms defined in Schedule "B" shall have the
meanings designated therein respectively.

               ARTICLE 2.00 GRANT OF LEASE AND GENERAL COVENANTS

2.01  Grant.  The  Landlord  hereby  leases to the Tenant and the Tenant  hereby
leases from the  Landlord  the Leased  Premises,  to have and to hold during the
Term, subject to the terms and conditions of this Lease.

2.02 Landlord's General Covenants. The Landlord covenants with the Tenant:

      (a) subject to the  provisions of this Lease,  for quiet  enjoyment of the
Leased  Premises  so long as the Tenant  shall  observe  and  perform all of the
covenants and obligations of the Tenant herein; and

      (b) to observe  and  perform  all the  covenants  and  obligations  of the
Landlord herein.

2.03 Tenant's General Covenants. The Tenant covenants with the Landlord:

      (a) to pay Rent without any  deduction,  abatement or set-off  whatsoever;
and

      (b) to observe and perform all the covenants and obligations of the Tenant
herein.

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<PAGE>

                        ARTICLE 3.00 TERM AND POSSESSION

3.01 Term. The Term of this Lease shall begin on the  Commencement  Date and end
on the date set out in Item 7(b) of the Term Sheet unless terminated  earlier as
provided in this Lease.

3.02 Early Occupancy. The Tenant may, with the Landlord's prior written consent,
use and occupy the Leased Premises or portions  thereof before the  Commencement
Date. In the event of early  occupancy,  the Tenant shall pay to the Landlord on
the date of occupancy a rental for the period from the date the Tenant begins to
use or occupy the Leased Premises or portions thereof to the Commencement  Date,
which rental shall be that proportion of the Rent for the first calendar year of
the Term which the number of days in such period is of 365,  multiplied  by that
proportion  that the part of the Leased  Premises used and occupied from time to
time by the Tenant  prior to the  Commencement  Date is of the total area of the
Leased Premises. Except where clearly inapplicable, all provisions of this Lease
shall apply during such period.

3.03 Delayed Possession.  If the Landlord is unable to deliver possession of all
or any portion of the Leased Premises by the Commencement Date, this Lease shall
remain in full  force and effect and the  Tenant  shall take  possession  of the
Leased Premises on the date when the Landlord delivers  possession of all of the
Leased  Premises,  which date  shall be  conclusively  established  by notice in
writing from the Landlord to the Tenant at least ten (10) days before such date.
The  Landlord  shall not be  liable  to the  Tenant  for any  loss,  damage,  or
inconvenience  resulting  from any delay in delivering  possession of the Leased
Premises but, unless the delay is caused by or  attributable to the Tenant,  its
servants,  agents or  independent  contractors,  no Rent shall be payable by the
Tenant  for the  period  prior to the date on which  the  Landlord  can  deliver
possession  of all of the Leased  Premises,  unless  the  Tenant  elects to take
possession  of a portion  of the  Leased  Premises,  in which case Rent shall be
payable in respect  thereof from the date such  possession is so taken.  Despite
anything  contained to the contrary in this Section  3.03, if the Landlord is of
the opinion  that it is unable to deliver  possession  of all or any part of the
Leased Premises by the expiration of six (6) months from the Commencement  Date,
the Landlord shall have the right to terminate this Lease upon written notice to
the Tenant, whereupon neither party shall have any liability to the other.

3.04 Acceptance of Leased Premises.  Taking  possession of all or any portion of
the Leased  Premises by the Tenant shall be  conclusive  evidence as against the
Tenant that the Leased  Premises or such portion thereof and the Common Elements
are in satisfactory condition on the date of taking possession,  subject only to
latent  defects  and to  deficiencies  (if any)  listed in  writing  in a notice
delivered  by the Tenant to the  Landlord  not more than ten (10) days after the
date of taking possession.

                               ARTICLE 4.00 RENT

4.01 Rent. The Tenant shall pay to the Landlord as Rent for the Leased  Premises
the aggregate of:

      (a) Basic Rent in respect of each year of the Term, payable in advance and
without  notice or demand in  monthly  installments  as set out in Item 8 of the
Term  Sheet  commencing  on the  Commencement  Date and on the first day of each
calendar month thereafter during the Term;

                                       5
<PAGE>

      (b) the Tenant's  Proportionate  Share of Operating Costs and the Tenant's
Proportionate  Share of Taxes  during the Term,  in each case payable in monthly
installments at the times and in the manner provided in Section 4.06; and

      (c) all amounts (other than payments under  Subsections  4.01 (a) and (b))
payable by the Tenant to the Landlord under this Lease,  at the times and in the
manner provided in this Lease or, if not so provided,  as reasonably required by
the Landlord.

4.02  Security  Deposit.  The  Landlord  acknowledges  receipt  on or before the
Commencement  Date of the  amount  set out in Item 6(a) of the Term  Sheet  (the
"Security Deposit") to be held by the Landlord, without any liability whatsoever
on the part of the Landlord for the payment of interest  thereon,  as a security
deposit for the faithful  performance by the Tenant of the terms,  covenants and
conditions of this Lease during the Term hereof and not to be applied on account
of Rent except as otherwise  provided in this Section 4.02. The Security Deposit
will not be a limitation on the Landlord's  damages or other rights and remedies
available under this Lease or at law or equity,  nor shall the Security  Deposit
be either a payment of  liquidated  damages or an advance  payment of Rent.  The
Landlord  shall  have  no  fiduciary   responsibilities   or  trust  obligations
whatsoever  with regard to the Security  Deposit and shall not assume the duties
of a  trustee  for the  Security  Deposit.  The  Security  Deposit  shall not be
mortgaged,  assigned or encumbered  by the Tenant and the Landlord  shall not be
bound by any such  mortgage,  assignment or  encumbrance.  It is understood  and
agreed between the parties that any portion of the Security  Deposit may, at the
Landlord's  option,  be applied toward the payment of overdue or unpaid Rent and
may also be  applied  as  compensation  to the  Landlord  for any loss or damage
sustained  with  respect  to the  breach on the part of the Tenant of any terms,
covenants and conditions of this Lease, provided in all cases, however, that the
Tenant's  liability  hereunder  is not  limited  to the  amount of the  Security
Deposit.  If during the Term any portion of the Security  Deposit is so applied,
then the Tenant  shall on written  demand  deliver to the  Landlord a sufficient
amount by certified  cheque to restore the Security  Deposit to the original sum
deposited. The Landlord shall refund to the Tenant after the expiry date of this
Lease  any  portion  of the  Security  Deposit  not used by the  Landlord  after
application by the Landlord to any damage  incurred by the Landlord by reason of
the default of the Tenant under the terms of this Lease. It is Further  provided
that the  Landlord  will be  discharged  from all  liability  to the Tenant with
respect to the  Security  Deposit to the extent  that it is  transferred  to any
purchaser of the Landlord's interest in the Leased Premises.

4.03 Intent.  It is the stated purpose and intent of the Landlord and the Tenant
that this Lease and the Rent shall be fully net to the Landlord.

4.04  Payment  of Rent.  General  - All  amounts  payable  by the  Tenant to the
Landlord  pursuant to this Lease shall be deemed to be Rent and shall be payable
and  recoverable  as Rent in the manner herein  provided and the Landlord  shall
have all rights  against  the Tenant for  default in any such  payment as in the
case of arrears of Rent.  Rent shall be paid to the  Landlord in lawful money of
Canada,  without  deduction,  abatement or set-off,  at the local address of the

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<PAGE>

Landlord  set out in Item 1 of the Term  Street or to such other  Person or such
other  address as the Landlord may from time to time  designate in writing.  The
Tenant's  obligation  to pay  Rent  shall  survive  the  expiration  or  earlier
termination  of this  Lease.  Any Rent or other sum  received or accepted by the
Landlord  and paid by anyone  other than the  Tenant,  on behalf of the  Tenant,
shall not  release or in any way affect the  covenants  of the Tenant set out in
this Lease and shall not be deemed to  constitute  or  evidence  the  Landlord's
consent to a Transfer under Article 12.00. Any Rent or other sum received by the
Landlord  from or for the  account of the Tenant  while the Tenant is in default
under this Lease may be applied at the Landlord's  option to the satisfaction in
whole or in part of any of the  obligations  of the  Tenant  then due under this
Lease in such manner as the Landlord sees fit  regardless of any  designation or
instruction of the Tenant to the contrary.

4.05 Partial Month. If the  Commencement  Date is a day other than the first day
of a calendar month, or if the Term ends on any day other than the last day of a
calendar  month,  Rent for the  fractions of a month at the beginning and at the
end of the Term shall be adjusted pro rata on a per diem basis.

4.06     Payment of Tenant's Occupancy Costs.

(1)   Estimate and Payment

      (a) The  Landlord  shall  deliver  to the Tenant a written  estimate  or a
written revised estimate of: (i) the Tenant's  Proportionate  Share of Operating
Costs for each Fiscal Year; and (ii) the Tenant's  Proportionate  Share of Taxes
for each  Fiscal  Year.  The  Tenant  shall pay to the  Landlord  the  amount so
estimated in equal monthly  installments  (except as otherwise  required in this
Section  4.06 with  respect to Property  Taxes) in advance over that Fiscal Year
simultaneously  with the  Tenant's  payments  on account of Basic  Rent.  If the
Landlord  does not  deliver to the Tenant  such an  estimate,  the Tenant  shall
continue to pay the  Tenant's  Proportionate  Share of  Operating  Costs and the
Tenant's  Proportionate Share of Taxes based on the last such estimate delivered
by the  Landlord  until a further  estimate is delivered by the Landlord and the
next  payment on  account  of the  Tenant's  Operating  Costs or Taxes  shall be
adjusted  to take  into  account  any over or  under  payment  in the  preceding
installments  paid in the Fiscal Year to which the estimate or revised  estimate
relates.  Notwithstanding the foregoing, as soon as bills for all or any portion
of amounts  included in Operating  Costs and Taxes as so estimated are received,
the Landlord may bill the Tenant for the Tenant's  Proportionate  Share  thereof
and the Tenant shall pay the  Landlord  such amounts so billed (less all amounts
previously paid on account by the Tenant on the basis of the Landlord's estimate
as aforesaid) as Rent within five (5) days following demand therefor.

      (b) Within a reasonable time after the date in each calendar year when the
final  installment of Property Taxes is due in respect of commercial  properties
generally  in the  municipality  in which the  Project  is located  (the  "Final
Payment Date"),  the Landlord shall deliver a statement (the "Tax Statement") to
the Tenant that (i) specifies the Tenant's  Proportionate Share of Taxes for the
Property  Tax Year and (ii)  sets out the  total  (the  "Prepayment  Total")  of
amounts  payable  under this  Subsection  4.06(1)(b)  that have been paid by the
Tenant between the Final Payment Date in the previous  Property Tax Year and the
Final Payment Date of the current  Property Tax Year. If the  Prepayment  Total,
less any amounts that were  previously  credited to the Tenant,  and any amounts

                                       7
<PAGE>

paid for arrears in respect of previous Property Tax Years, (the "Net Prepayment
Total") is less than the Tenant's  Proportionate Share of Taxes specified in the
Tax Statement, the Tenant shall pay the deficiency with the next monthly payment
of Basic Rent. If the Net  Prepayment  Total exceeds the Tenant's  Proportionate
Share of Taxes specified in the Tax Statement,  the Landlord  shall,  unless the
Tenant is then in default  under this Lease,  credit the excess to the Tenant on
account of the next succeeding  payments of the Tenant's  Occupancy  Costs.  The
Landlord may estimate  Property  Taxes for the Property Tax Year  following  the
then current  Property Tax Year,  and the Tenant shall  continue after the Final
Payment Date, to make monthly payments in advance,  in amounts determined by the
Landlord,  for periods determined by the Landlord.  The monthly payments paid by
the Tenant after the Final  Payment Date shall be credited  against the Tenant's
Proportionate Share of Taxes for the subsequent Property Tax Year.

      (c) Any portion of the Tenant's  Proportionate Share of Taxes accrued with
respect  to the  Term or any  part  thereof  paid by the  Landlord  prior to the
Commencement  Date  shall be  reimbursed  by the Tenant to the  Landlord  on the
Commencement  Date or on demand  thereafter.  Subject to Sections 8.03 and 8.05,
the Tenant shall pay the Tenant's  Proportionate  Share of any Property Taxes or
the Landlord's reasonable estimate thereof monthly in advance in the same manner
as for payment of the Tenant's Proportionate Share of Operating Costs.

Notwithstanding the foregoing, the Landlord shall always have the right:

            (i) to revise the  amount of  installments  on  account of  Property
            Taxes payable by the Tenant to an amount that allows the Landlord to
            collect all  Property  Taxes  payable by the Tenant by the final due
            date of Property Taxes for the calendar year; and/or

            (ii) to schedule and require  payment by the Tenant of  installments
            on account of Property  Taxes payable by the Tenant such that by the
            final due date of Property  Taxes for any calendar  year, the Tenant
            shall have paid to the  Landlord  the full amount of Property  Taxes
            payable by the Tenant for such calendar year, which  arrangement may
            include  payment of installments by the Tenant in a calendar year on
            account  of  Property  Taxes  payable  by the  Tenant  for the  next
            calendar year.

(2) Annual  Statement and  Adjustment - The Landlord shall deliver to the Tenant
within one hundred and twenty (120) days after the end of each Fiscal Year or as
soon after that date as the same shall be  prepared  by or for the  Landlord,  a
written  statement  setting out in reasonable  detail the amount of the Tenant's
Proportionate  Share of Operating  Costs for such Fiscal  Year.  If the total of
monthly installments of the Tenant's Occupancy Costs actually paid by the Tenant
to the Landlord  during that Fiscal Year differs from the amount of the Tenant's
Operating  Costs  payable  for that Fiscal Year under  Subsection  4.01(b),  the
Tenant  shall pay to the  Landlord  or, if the  Tenant  is not in  default,  the
Landlord shall credit to the Tenant on account of the next  succeeding  payments
of the Tenant's  Operating  Costs, as the case may be, the  difference,  without
interest, within thirty (30) days after the date of delivery of the statement.

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<PAGE>

(3)  Disputes - If the Tenant  disputes  the  Landlord's  statement  setting out
Operating  Costs or the Tax  Statement  for any Fiscal  Year,  the Tenant  shall
provide  notice  thereof in writing to the  Landlord  within  sixty (60) days of
delivery  of  the   applicable   statement  in  respect  of  that  Fiscal  Year.
Notwithstanding  delivery of such notice,  the Tenant shall continue to pay Rent
in  accordance  with the terms of this  Lease.  In the event of a  dispute,  the
determination  of the Tenant's  Proportionate  Share of  Operating  Costs or the
Tenant's  Proportionate  Share of Taxes as made by the Landlord's auditors shall
be  conclusive  and binding upon both the Landlord and the Tenant.  All costs of
obtaining such determination shall be included in Operating Costs; provided that
if the Landlord's auditors confirm the Landlord's calculations within a variance
of five percent (5%), the Tenant shall be solely responsible for the entire cost
of such  determination  and shall pay such costs to the Landlord  forthwith upon
demand.  If the Tenant and any one or more of the other  tenants in the  Project
are  responsible  to pay such costs,  the Tenant shall be jointly and  severally
liable with such other tenant or tenants.

4.07 Resolution of Disputes.  In the event of any  disagreement as to the amount
or propriety of any amount  included in Operating  Costs,  a certificate  of the
auditor of the Landlord, acting reasonably, shall be conclusive as to the amount
of Operating Costs for any period to which such certificate relates.

4.08  Area  Determination.  The  Landlord  may from  time to  time,  as it deems
necessary, cause the Rentable Area of the Leased Premises and the Total Rentable
Area of the Building or any part thereof to be  recalculated  or remeasured  and
the cost  thereof  shall be included in  Operating  Costs  (except as  otherwise
provided in this Section 4.08).  Upon any such  recalculation or  remeasurement,
Rent (including without limitation Basic Rent) shall be adjusted accordingly. If
any  calculation  or  determination  by the Landlord of the Rentable Area of any
premises (including the Leased Premises) is disputed or called into question, it
shall be calculated or determined by the  Landlord's  architect or surveyor from
time to time appointed for that purpose,  whose  certificate shall be conclusive
and  binding  upon  the  parties  hereto.   The  cost  of  such  calculation  or
determination shall be included in Operating Costs;  provided that if the Tenant
disputes the Landlord's  calculation  or  determination  and the  calculation or
determination by the Landlord's architect or surveyor agrees with the Landlord's
calculation  or  determination  within a two percent (2%)  variance,  the Tenant
shall pay the full cost of such  calculation  or  determination  forthwith  upon
demand.  If the Tenant and any one or more of the other  tenants in the  Project
are  responsible  to pay such costs,  the Tenant shall be jointly and  severally
liable with such other tenant or tenants.

If any  error  shall be found in the  calculation  of the  Rentable  Area of the
Leased Premises or in the calculation of the Tenant's  Proportionate Share, Rent
(including  without limitation Basic Rent) shall be adjusted for the Fiscal Year
in which the error is  discovered  and for the Fiscal Year  preceding the Fiscal
Year in which the error was  discovered,  if any, and thereafter but not for any
prior period.

4.09 Vacancy. If any part of the Building available for leasing is not occupied,
the  Landlord  shall have the right,  in  respect  of  amounts  forming  part of
Operating  Costs  which  vary  proportionately  with  occupancy,  to  include in
Operating Costs a larger amount of costs,  which larger amount shall be based on
a reasonable  estimate of the actual cost which would have been  incurred if the
unoccupied parts of the Building  available for leasing were occupied,  it being

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<PAGE>

intended  hereby  that the  Landlord  shall  obtain,  to the  extent  reasonably
possible, full reimbursement of Operating Costs attributable to or in respect of
occupied premises,  and not that: (a) the Tenant shall subsidize Operating Costs
incurred by the Landlord  attributable to or in respect of vacant  premises;  or
(b) the Landlord shall recover more than actual Operating Costs.

4.10     Method of Payment.

(1) Unless the Landlord advises  otherwise in writing,  the Tenant shall provide
to the Landlord on or before the  Commencement  Date and thereafter on or before
the beginning of each Fiscal Year during the Term and within ten (10) days after
delivery of the Landlord's estimate of any payment  constituting Rent, postdated
cheques in the amount of Rent for each month during that Fiscal Year.

(2) At the Landlord's request,  the Tenant shall participate in a pre-authorized
payment plan whereby the Landlord  will be authorized to debit the Tenant's bank
account each month or from time to time for Rent payable on a monthly basis, and
any amount  payable  provisionally  on an  estimated  basis.  The Tenant  hereby
undertakes to execute and deliver such  documents as may  reasonably be required
to give full force and effect to this Subsection 4.10(2) within five (5) days of
such request.

                        ARTICLE 5.00 USE AND OCCUPATION

5.01 Use of Leased  Premises.  The Tenant  shall use and occupy  only the usable
part of the  Leased  Premises  and  only  for  office  purposes  to carry on the
business  set out in Item 9 of the Term  Sheet and  shall not use or permit  the
Leased Premises or any part thereof to be used or occupied for any other purpose
or business,  except as otherwise expressly permitted under this Lease or by any
Person other than the Tenant,  The Tenant shall be responsible  for obtaining at
its expense all  necessary  approvals,  licences and permits,  including but not
limited to zoning,  development,  building,  occupancy  and business  approvals,
licences  and permits,  for its  intended  use of the Leased  Premises and shall
submit all applications for such approvals, licences and permits to the Landlord
for its  consent  (which  consent,  if the  application  pertains  to the zoning
applicable  to the  Project  or may  adversely  affect  the  value or use of the
Project or any part thereof,  may be arbitrarily withheld by the Landlord) prior
to making application. Notwithstanding the Landlord's consent to an application,
the Tenant shall indemnify and defend the Landlord and save it harmless from and
against any and all Claims  incurred or  suffered  by the  Landlord  directly or
indirectly arising out of the Tenant's application for such approvals,  licences
or permits or the resulting approvals,  licences and permits with respect to the
use,  intended or otherwise,  of the Leased Premises  whether such Claims are in
respect of the Leased Premises or in respect of the Building or the Project. The
Landlord  makes no  representation  whether or not  necessary  approvals  can be
obtained  for  the  Tenant's  use  or  intended  use.  The  Landlord   makes  no
representation or warranty,  express or implied,  that the present or future use
of the Leased  Premises,  if such use is  anything  other than  office  use,  is
legally fit for the intended use, or complies with any law, by-law or regulation
governing the use of the Leased Premises.

5.02  Compliance with Laws. The Tenant shall promptly and at its own cost comply
with all present and future laws, regulations and orders relating to, and obtain
and  maintain  in force  all  approvals,  permits,  licences  and  registrations
required for, any of the following:

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<PAGE>

      (a) the  occupation  or use of and the conduct of any  business in or from
the Leased Premises;

      (b) the condition of the Leasehold Improvements,  fixtures,  furniture and
equipment installed therein;

      (c) Pollutants and the protection of the environment so far as those laws,
regulations and orders or any of them relate to the Project; and

      (d) the making by the Tenant of any repairs, changes or improvements in or
to the Project;  and the Tenant  shall  immediately  give written  notice to the
Landlord of the occurrence of any event in the Leased  Premises  constituting an
offence  thereunder or being in breach  thereof and if the Tenant shall,  either
alone or with others,  cause the  happening of any such event,  the Tenant shall
immediately  give the  Landlord  notice to that effect and  thereafter  give the
Landlord  from time to time  written  notice  of the  extent  and  nature of the
Tenant's compliance with the foregoing provisions of this Section.

The Tenant agrees that if the Landlord  determines in its sole  discretion  that
the Landlord,  its property, its reputation or the Leased Premises or any one or
more of the foregoing is placed in any jeopardy,  as determined by the Landlord,
by the  requirements  for any  work  required  to  ensure  compliance  with  the
foregoing provisions of this Section 5.02, or the Tenant is unable to fulfil its
obligations  under this Section,  the Landlord may itself undertake such work or
any part thereof at the cost and expense of the Tenant.

The Tenant shall,  at its own expense,  remedy any damage to the Leased Premises
caused by such event or work or by the  performance of the Tenant's  obligations
under this Section.

If alterations or  improvements  to the Leasehold  Improvements or to the Leased
Premises are  necessary to comply with any of the  foregoing  provisions of this
Section  or with the  requirements  of  insurance  carriers,  the  Tenant  shall
forthwith complete such work, complying always with the applicable provisions of
this Lease,  to the extent that it can be done within the Leased Premises and in
any event shall pay the entire cost of alterations and improvements so required.

In the event that structural repairs or upgrading of the Building, including but
not limited to seismic  upgrading,  is required to permit the Tenant's  use, the
Landlord may, at its sole discretion, terminate the Lease.

5.03 Prohibited Uses. The Tenant shall not commit,  cause or permit any nuisance
in or about or any  damage  to the  Leased  Premises  or any part  thereof,  the
Building,  the Project or any of the Leasehold Improvements or goods or fixtures
therein,  any  overloading  of the floors of the Leased  Premises  or any use or
manner of use causing  annoyance  to other  tenants or occupants of the Project.
Without  limiting the generality of the  foregoing,  the Tenant shall not use or
permit the use of any portion of the Leased Premises for any dangerous, illegal,
noxious,  odorous or offensive trade,  business or occurrence.  The Tenant shall
keep the Leased Premises free of debris, Pollutants and anything of a dangerous,
noxious,  odorous  or  offensive  nature  or which  could  create a fire  hazard
(through  undue load on electrical  circuits or  otherwise) or vibration,  heat,
odour or noise detectable  outside the Leased Premises in the sole discretion of
the  Landlord.  The Tenant shall not use  equipment in the Leased  Premises in a
manner that results in its being seen or heard outside the Leased Premises.

                                       11
<PAGE>

5.04  Common  Elements.  The  Tenant and its  employees  and  invitees  shall be
entitled to use, in common with others entitled thereto,  for purposes for which
they are intended and only during such hours as the Landlord may designate  from
time to time,  the Common  Elements.  The Tenant and its  employees and invitees
shall not obstruct the Common Elements or use the Common Elements other than for
their  intended  purposes  and  then  only in  accordance  with  the  rules  and
regulations set by the Landlord from time to time.

5.05  Hazardous  Use.  The Tenant  shall not do, omit to do or permit to be done
anything  which will  cause or may have the  effect of  causing  the cost of the
Landlord's  insurance  in  respect  of the  Project  or any part  thereof  to be
increased  at any time during the Term or any policy of insurance on or relating
to the Project to be subject to  cancellation.  Without  waiving or limiting the
foregoing  prohibition,  the Landlord may demand and the Tenant shall pay to the
Landlord upon demand, the amount of any increase in the cost of insurance caused
by  anything  so done or  omitted or  permitted  to be done.  The  Tenant  shall
forthwith  upon the  Landlord's  request  comply  with the  requirements  of the
Landlord's  insurers,  cease  any  activity  complained  of and  make  good  any
circumstance  which  has  caused  any  increase  in  insurance  premiums  or the
cancellation or threatened  cancellation of any insurance policy. In determining
the amount of increased premiums for which the Tenant is responsible, a schedule
or  statement  issued by the Person who  computes  the  insurance  rates for the
Landlord showing the components of the rate shall be conclusive  evidence of the
items  that make up the rate.  If any  policy of  insurance  in  respect  of the
Project or any part thereof is cancelled or becomes  subject to  cancellation by
reason of anything so done or omitted or permitted to be done,  the Landlord may
without prior notice terminate this Lease and re-enter the Leased Premises.

5.06 Tenant's  Security  Interest.  The Tenant shall not, without the Landlord's
prior  written  consent,  create a security  interest in Leasehold  Improvements
installed by the Tenant or the Landlord in the Leased Premises.

5.07 Rules and  Regulations.  The Tenant shall observe and cause its  employees,
servants,  agents, invitees,  customers,  subtenants,  licensees and others over
whom the Tenant can  reasonably  be expected to exercise  control to observe the
rules and regulations attached as Schedule "C" hereto and such further and other
reasonable rules and regulations and amendments and additions  thereto as may be
made by the Landlord and notified to the Tenant by mailing a copy thereof to the
Tenant or by posting same in a conspicuous place in the Building. All such rules
and  regulations now or hereafter in force shall be read as forming part of this
Lease;  provided that if there is a conflict  between the rules and  regulations
and this Lease, the terms of this Lease shall prevail. The Landlord shall not be
responsible  to the Tenant for the  non-observance  of any rule or regulation or
the terms of any lease or agreement to lease by any other tenant of the Project.

5.08 Permitted Signs. The Tenant shall use only such identification signs as are
prescribed by the Landlord  from time to time and as comply with all  applicable
by-laws,  regulations  and  codes as to  size,  location,  arrangement,  type of
lettering,  colour,  appearance  and design for uniform use by office tenants in
the  Building.  Such signs  shall  contain  only the name under which the Tenant
carries on business.

                                       12
<PAGE>

5.09  Prohibited  Signs.  Except with the prior written consent of the Landlord,
which consent may be arbitrarily  withheld or rescinded in the  Landlord's  sole
discretion, or as provided in Section 5.08, the Tenant shall not paint, display,
inscribe,  place or affix any sign, symbol,  notice,  advertisement,  display or
direction of any kind anywhere outside the Leased Premises or on the interior of
any glass,  windows or doors or elsewhere within the Leased Premises so as to be
visible from the outside of the Leased Premises.

5.10 Window  Coverings.  Without the prior written consent of the Landlord,  the
Tenant  shall not  install  any blinds,  drapes,  curtains  or any other  window
coverings  in the Leased  Premises  and shall not  remove,  add to or change the
blinds,  drapes,  curtains or other window  coverings  installed by the Landlord
from time to time. The Tenant shall keep all window  coverings open or closed at
various  times as the  Landlord  may from  time to time  direct by the rules and
regulations or otherwise.

5.11 Parking. Any Parking Facilities provided by the Landlord shall at all times
be subject to the exclusive control and management of the Landlord or those whom
the Landlord may designate  from time to time. The Landlord shall have the right
from  time to  time to  establish,  modify  and  enforce  reasonable  rules  and
regulations with respect to any Parking Facilities and shall have the right from
time to time:

      (a) to expand, reduce, or change the area, level, location and arrangement
of the Parking Facilities and to construct any Parking Facilities;

      (b) to  enforce  parking  charges  with  appropriate  provisions  for free
parking ticket validating by tenants of the Building;

      (c) to temporarily  close all or any portion of the Parking  Facilities to
such extent as may, in the Landlord's  opinion, be legally sufficient to prevent
a dedication thereof or the accrual of rights to any Person or the public;

      (d) to  temporarily  obstruct  or close off all or any part of the Parking
Facilities for the purpose of maintenance or repair; and

      (e) to do and perform such other acts in and to the Parking Facilities as,
in  the  judgment  of the  Landlord,  shall  be  advisable  with  a view  to the
improvement  of the  convenience  of and use of the  Building by tenants,  their
employees and invitees.

The Landlord will operate and maintain the Parking  Facilities in such manner as
the Landlord in its sole discretion  shall determine from time to time.  Without
limiting the scope of such discretion, the Landlord shall have the sole right to
employ  all  personnel  and make all rules  and  regulations  pertaining  to and
necessary for the proper  operation and  maintenance of the Parking  Facilities.
The Tenant shall  participate  in any free  parking or other  ticket  validation
system  established  by the  Landlord  and abide by all  rules  and  regulations
pertaining  thereto and the Tenant shall pay to the Landlord  monthly,  together
with payments on account of Basic Rent, all parking charges  attributable to the
Tenant as evidenced  by parking  tickets  validated by the Tenant in  accordance
with any system established by the Landlord.

                                       13
<PAGE>

5.12  Authorization of Enquiries.  The Tenant hereby  authorizes the Landlord to
make  enquiries  from  time  to  time  of  any  government  or  municipality  or
governmental  or municipal  agency with respect to the Tenant's  compliance with
any and all  laws and  regulations  pertaining  to the  Tenant  or the  business
conducted  in the  Leased  Premises  including,  without  limitation,  laws  and
regulations pertaining to Pollutants and the protection of the environment;  and
the Tenant  covenants and agrees that the Tenant shall from time to time provide
to the Landlord  such  written  authorization  as the  Landlord  may  reasonably
require in order to facilitate the obtaining of such information.

5.13  Records.  The Tenant shall keep on the Leased  Premises or at the Tenant's
head office complete records of all goods stored on, or processed, manufactured,
packaged or used in any process in the Leased  Premises by the Tenant and by any
other  occupant of the Leased  Premises or any part  thereof.  The  Landlord may
examine  such  records  and the Tenant  shall  provide  extracts  from or copies
thereof all as required by the Landlord from time to time.  This  requirement to
maintain  such records shall  survive the expiry or earlier  termination  of the
Term.

5.14  Overloading.  The Tenant shall not install or permit the  installation  of
equipment or storage of items that, in the opinion of the  Landlord's  engineer,
overloads  the  capacity  of any  utility  or of any  electrical  or  mechanical
facility  in the  Project or which may exceed the  load-bearing  capacity of the
floors of the  Project.  If damage is caused to the  Leased  Premises  or to the
Project as a result of any installation in  contravention  of this Section,  the
Tenant shall repair the damage or, at the Landlord's option, pay to the Landlord
on demand the cost of repairing the damage incurred by the Landlord.

5.15     Telecommunications.

(1) The Tenant may utilize a  telecommunication  service  provider of its choice
with  the  Landlord's  prior  written  consent,   which  consent  shall  not  be
unreasonably  withheld,  subject to the provisions of this Lease,  including but
not limited to the following:

      (a) prior to  commencing  any work in the  Project,  the service  provider
shall execute and deliver the  Landlord's  standard  form of licence  agreement,
which shall include a provision for the Landlord to receive compensation for the
use of the space for the service provider's equipment and materials;

      (b) the  Landlord  shall  incur no expense or  liability  whatsoever  with
respect to any aspect of the provision of telecommunication services,  including
without  limitation,  the cost of  installation,  service,  materials,  repairs,
maintenance, removal, interruption or loss of telecommunication service;

      (c) the Landlord must first reasonably  determine that there is sufficient
space  in the  risers  of the  Building  for  the  installation  of the  service
provider's wiring and cross connect;

      (d) the Tenant  shall  indemnify  and hold  harmless  the Landlord for all
losses, claims,  demands,  expenses and judgments against the Landlord caused by
or arising out of, either  directly or indirectly,  any acts or omissions by the
service  provider or the Tenant or those for whom either of them is  responsible
at law; and

                                       14
<PAGE>

      (e) the  Tenant  shall  incorporate  in its  agreement  with  its  service
provider a  provision  granting  the Tenant the right to  terminate  the service
provider  agreement if required to do so by the Landlord and the Landlord  shall
have the right at any time and from time to time  during the Term to require the
Tenant,  at its expense,  to exercise the termination  right and to contract for
telecommunication service with a different service provider.

(2) The Tenant shall be responsible for the costs associated with the supply and
installation  of  telephone,  computer  and other  communication  equipment  and
systems and related  wiring  within the Leased  Premises to the  boundary of the
Leased  Premises  for hook up or other  integration  with  telephone  and  other
communication  equipment  and  systems  of a  telephone  or other  communication
service  provider,  which  equipment  and  systems of the service  provider  are
located or are to be located in the Building pursuant to the Landlord's standard
form of licence  agreement and,  subject to the provisions of Section 14.01, for
the removal of same.

(3) The  Landlord  shall  supply  space in risers in the  Building  and space on
floor(s) of the Building in which the Leased Premises are located,  the location
of  which  shall  be   designated  by  the  Landlord  in  its   discretion,   to
telecommunication  service  providers  who  have  entered  into  the  Landlord's
standard form of licence agreement for the purpose,  without any cost or expense
to the Landlord therefor, of permitting  installation in such risers and on such
floor(s) of telephone and other  communication  services and systems  (including
data cable patch  panels) to the Leased  Premises at a point  designated  by the
Landlord.

(4) The Landlord  shall have the right to assume  control of wiring,  cables and
other telecommunication equipment in the Building and may designate them as part
of the Common Elements.

     ARTICLE 6.00 SERVICES, MAINTENANCE, REPAIR AND ALTERATIONS BY LANDLORD

6.01  Operation of Project.  During the Term, and so long as no Event of Default
shall exist, and so long as no event shall occur which, with the passage of time
or the  giving of notice or both,  would  constitute  an Event of  Default,  the
Landlord  shall operate and maintain the Project in accordance  with  applicable
laws and regulations and with standards from time to time prevailing for similar
projects in the area in which the Project is located and,  subject to payment by
the Tenant of Rent,  shall  provide the Services  set out in this Article  6.00;
provided that the Landlord shall not be responsible for operating,  maintaining,
repairing or replacing  any systems,  facilities or equipment to the extent that
the  operation,  maintenance,  repair or  replacement  thereof are  specifically
stated in this Lease to be the responsibility of the Tenant.

6.02     Building Services and Facilities.  The Landlord shall provide:

      (a) washrooms accessible to the Leased Premises for the use of the Tenant,
its employees and invitees in common with other persons entitled thereto;

                                       15
<PAGE>

      (b)  domestic  running  water to the  building  standard  washrooms in the
Leased  Premises,  if any,  and to washrooms  available  for the Tenant's use in
common with others entitled thereto;

      (c) access to and egress from the Leased  Premises  for use by the Tenant,
its  employees  and  invitees in common  with other  persons  entitled  thereto,
provided that the Landlord may restrict access for security  purposes or require
that all persons seeking access produce identification;

      (d) heating,  ventilation and air conditioning to the Building,  including
the Leased Premises,  to a level  sufficient to maintain  therein  conditions of
reasonable temperature and comfort provided that, unless otherwise agreed by the
parties,  a full standard of interior  climate  control shall only be maintained
during  those  hours  and on those  days  established  from  time to time by the
Landlord as being operating  periods for the Building,  having reasonable regard
to energy conservation;

      (e) lighting and  electrical  power to the Common  Elements as  reasonably
required;

      (f) electrical  power to the Leased Premises for lighting and for standard
office equipment  capable of operating from the voltage  circuits  available and
then standard for the Building;

      (g) janitorial  services to the Leased  Premises and Common  Elements to a
standard  consistent  from time to time with  similar  buildings  in the area in
which the Building is located;

      (h)  a  directory   board  located  in  the  Common   Elements   providing
identification of the tenants in the Building in such manner and containing such
information as the Landlord may determine; and

      (i) subject to Section  5.15,  appropriate  ducts for  bringing  telephone
services to the Leased Premises.

6.03 Maintenance,  Repair and Replacement.  Subject to the provisions of Article
10.00 and payment by the Tenant of Rent, the Landlord  shall operate,  maintain,
repair and replace the  systems,  facilities  and  equipment  necessary  for the
proper operation of the Project and for provision of the Landlord's Services set
out in Section  6.02  (except as may be  installed  by or be the property of the
Tenant) and shall maintain and repair the foundations, structure and roof of the
Building and repair  damage to the  Building  which the Landlord is obligated to
insure against under Article 9.00, provided that:

      (a) if and so long as all or part of the systems, facilities and equipment
in the Project or the supply of utilities to the Project are destroyed,  damaged
or  interrupted,  the  Landlord  shall have a  reasonable  time within  which to
complete any necessary  repair or replacement  and, during that time, shall only
be  required  to  maintain  such  Services  as are  reasonably  possible  in the
circumstances;

      (b) the Landlord may temporarily  discontinue such Services or any of them
at such times as may reasonably be necessary;

                                       16
<PAGE>

      (c) the  Landlord  shall use  reasonable  diligence  in  carrying  out its
obligations  under  this  Section  6.03,  but  shall  not be  liable  under  any
circumstances for any consequential damages,  whether direct or indirect, to any
Person or property resulting from any failure to do so;

      (d) no reduction  or  discontinuance  of Services  under this Section 6.03
shall be construed as a breach of the Landlord's covenant for quiet enjoyment or
as an eviction of the Tenant or, except as  specifically  provided  otherwise in
this Lease, release the Tenant from any obligation under this Lease;

      (e) the  Landlord  shall not be liable  under  any  circumstances  for any
damage caused by  interruption  or failure of any satellite,  telecommunications
system, utility, wiring, elevator or escalator;

      (f) the  Landlord  shall  have no  responsibility  for any  inadequacy  of
performance of any systems within the Leased  Premises if the Leased Premises or
the use thereof depart from the design  criteria for such systems as established
by the Landlord for the Building; and

      (g) nothing contained herein shall derogate from the provisions of Article
10.00.

6.04  Alterations/Renovations  by  Landlord.  During the Term or any  renewal or
extension  thereof,  it is understood and agreed that if the Landlord intends to
make changes,  additions or  improvements to or renovate the Project or any part
thereof,  of which the  Leased  Premises  form a part (the  "Renovation  Work"),
notwithstanding  anything contained in this Lease to the contrary, the Landlord,
its  servants,  agents,  contractors  and  representatives  may proceed with the
Renovation Work without further consent or approval of the Tenant and the Tenant
hereby irrevocably grants to the Landlord its consent to the carrying out of the
Renovation Work. It is specifically understood and agreed that there shall be no
compensation  paid to the Tenant  nor shall  there be any  abatement  of Rent in
connection  with the Renovation  Work. In exercising its rights pursuant to this
Section 6.04, the Landlord shall be entitled to:

      (a)  enter  the  Leased  Premises  from  time to time to make  changes  or
additions to the  structure,  systems,  facilities  and  equipment in the Leased
Premises where  necessary to serve the Leased  Premises or other or parts of the
Building;

      (b)  limit  from  time  to  time  as may be  necessary  by  reason  of the
Renovation  Work,  ingress to and egress  from the  Leased  Premises  and/or the
Project;

      (c) change, add to, diminish,  demolish, dedicate for public purposes part
or parts of, improve or alter any part of the Project; and

      (d) change, add to, diminish,  improve or alter the location and extent of
the Common Elements.

The Landlord agrees to use commercially reasonable efforts to give to the Tenant
notice of its intention to proceed with the Renovation Work and the Tenant shall
cooperate  with  the  landlord  in  order to  allow  the  Renovation  Work to be
completed  as  expeditiously  as  possible.  It is  specifically  agreed  by the
Landlord and the Tenant that the Landlord shall not, by reason of exercising its
rights  pursuant  to this  Section  6.04,  be in  default  or be deemed to be in
default of any covenant or proviso contained in this Lease or at law.

                                       17
<PAGE>

6.05  Access by  Landlord.  The Tenant  shall  permit the  Landlord to enter the
Leased  Premises at any time in case of an emergency,  either real or perceived,
and otherwise  during normal  business hours upon  twenty-four  (24) hours prior
notice (except in the event of an emergency where no notice is required) to: (a)
examine,  inspect and show the Leased Premises for purposes of leasing,  sale or
financing;  (b)  provide  Services  or make  repairs,  replacements,  changes or
alterations  as  provided  for in this  Lease;  and (c) take  such  steps as the
Landlord may deem necessary for the safety,  improvement or  preservation of the
Leased Premises or the Project.  The Tenant shall cooperate with the Landlord in
any such showing of the Leased Premises.  The Landlord shall, whenever possible,
consult with or give reasonable  notice to the Tenant prior to entry but no such
entry shall  constitute an eviction or a breach of the  Landlord's  covenant for
quiet enjoyment or entitle the Tenant to any abatement of Rent.

6.06 Energy  Conservation.  The  Landlord  shall be deemed to have  observed and
performed its  obligations  under this Lease,  including  those  relating to the
provision of utilities and Services, if in so doing it acts in accordance with a
directive, policy or request of an authority having jurisdiction in the field of
energy conservation, security or environmental matters.

6.07 Supervision and Extended Services.  The Landlord,  if it shall from time to
time so elect,  shall have the right to  supervise  the moving of  furniture  or
equipment of the Tenant and (in  addition to  supervising  the Tenant's  work as
provided for in this Lease) to supervise the making of repairs  conducted within
the Leased  Premises and the exclusive  right to supervise or make deliveries to
the Leased  Premises.  In  addition,  and by  arrangement  with the Tenant,  the
Landlord  may  provide  extended  cleaning  or other  services  to the Tenant in
addition to those normally supplied and referred to in this Lease. In each case,
the Landlord's costs and expenses  incurred with respect thereto together with a
reasonable  administration  fee shall be paid to the Landlord by the Tenant from
time to time promptly upon receipt of invoices from the Landlord.

6.08  Landlord's  Work. The Tenant agrees that it has entered into this Lease on
the  express  understanding  that,  unless  otherwise  specifically  provided in
Schedule "D" or Schedule  "E", the Leased  Premises are being leased "as is" and
that the  Landlord's  work in respect of the Leased  Premises  is limited to the
scope  delineated as Landlord's work in Schedule "D". All other  improvements to
the Leased  Premises  shall be  performed  at the sole  expense of the Tenant in
accordance  with the terms of this Lease,  including  but not limited to Section
7.04.

6.09 Control by Landlord. The Tenant agrees that the Landlord shall have control
of the Project  and,  without  limiting  the  generality  of anything  contained
elsewhere in this Lease,  the Landlord may make such use of the Common  Elements
and permit  others to make such use of the Common  Elements as the  Landlord may
from time to time determine subject, in the case of use by others, to such terms
and conditions and for such  consideration as the Landlord may in its discretion
determine,  and the Landlord may  temporarily  close all or any part or parts of
the  Project  to such  extent as may,  in the  opinion  of the  Landlord  or any
Consultants  engaged by the Landlord in that regard,  be legally  sufficient  to
prevent a dedication  thereof or the accrual of rights  therein to any Person or
the public.

                                       18
<PAGE>

ARTICLE 7.00 PAYMENT FOR SERVICES AND  MAINTENANCE,  REPAIR AND  ALTERATIONS  BY
                                     TENANT

7.01 Utilities.  In addition to the payment of the Tenant's  Occupancy Costs and
notwithstanding  Sections 6.01 and 6.02, the Tenant shall be responsible for the
cost of all utilities including electricity supplied to the Leased Premises. The
Tenant shall not, without the prior written approval of the Landlord,  which may
be arbitrarily withheld, install or cause to be installed in the Leased Premises
any   equipment   that   will   require   additional   utility   usage   or  any
telecommunications lines and/or conduits in excess of that normally required for
office premises. If, with the Landlord's approval,  such additional equipment is
installed, the Tenant shall be solely responsible for such excess utility usage.
If utilities are supplied to the Tenant  through a meter common to other tenants
in the Project  (there being no obligation  on the Landlord to install  separate
meters), the Landlord shall pay the cost of the utilities and apportion the cost
pro rata among the  tenants  supplied  through  the common  meter,  based on all
relevant  factors  including,  but not limited to, the hours of use,  number and
types of lights and  electrical  equipment  and the  proportion of each tenant's
Rentable  Area to the  Rentable  Area of all  tenants to which the common  meter
relates.  Upon receipt of the Landlord's statement of apportionment,  the Tenant
shall promptly reimburse the Landlord for all amounts  apportioned to the Tenant
by the Landlord  provided that the Landlord may elect by notice to the Tenant to
estimate  the amount  which will be  apportioned  to the Tenant and  require the
Tenant to pay that amount in monthly installments in advance simultaneously with
the Tenant's payments of Basic Rent.  Notwithstanding the foregoing, and whether
the Leased Premises are separately  metered or not, the Landlord may purchase in
bulk from the utility supplier the aggregate utility requirements of the Project
at the applicable  rates determined by a single meter on the Project and may, in
billing  the  Tenant for its share of such  utility,  apply a scale of rates not
greater  than the current  scale of rates at which the Tenant would from time to
time be purchasing  the whole of its utilities  required and consumed in respect
of the Leased Premises if the Tenant were  purchasing  directly from the utility
supplier.  The  Tenant  shall  upon the  Landlord's  request  install a separate
utility meter or meters in the Leased Premises at the Tenant's expense.

In addition to the payments to the Landlord  required by this Article 7.00,  the
Tenant  shall pay all rates,  charges,  costs and expenses as may be assessed or
levied by any supplier of  utilities to the Tenant other than those  supplied by
the Landlord.

7.02  Lights.  In addition to the payment of the  Tenant's  Occupancy  Costs and
notwithstanding  Sections  6.01  and  6.02,  except  to the  extent  the same is
included in Operating  Costs,  the Tenant  shall pay to the Landlord  monthly in
advance,  with its payments of Basic Rent, a reasonable  amount as determined by
the Landlord in respect of replacement of building standard  fluorescent  tubes,
light  bulbs and  ballasts  in the Leased  Premises  on a  periodic  basis or as
required from time to time and the costs of cleaning,  maintaining and servicing
of the electrical light fixtures in the Leased Premises.

7.03 Heating,  Ventilation and Air  Conditioning.  In addition to the payment of
the Tenant's  Occupancy  Costs and  notwithstanding  Sections 6.01 and 6.02, the
Tenant shall he  responsible  for the cost of all heating,  ventilation  and air
conditioning  required in the Leased  Premises or any part  thereof in excess of
that required to be provided by the Landlord  under Section  6.02(d).  If at any
time during the Term the Landlord shall  determine that the cost of the heating,
ventilation  and air  conditioning  required in the Leased  Premises or any part

                                       19
<PAGE>

thereof is in excess of that  normally  required in other parts of the  Building
which are used for normal  office  purposes,  the  Landlord  may  deliver to the
Tenant a  statement  in  writing  setting  out the cost of the  excess  and upon
receipt of the statement from time to time the Tenant shall  promptly  reimburse
the Landlord for the amount shown in the statement as attributable to the Leased
Premises.

7.04 Alterations by Tenant.  The Tenant may from time to time at its own expense
make changes,  additions and improvements to the Leased Premises to better adapt
the same to its  business,  provided  that any change,  addition or  improvement
shall:

      (a)  comply  with the  requirements  of the  Landlord's  insurers  and any
governmental or municipal authority having jurisdiction;

      (b) be made only if, prior to preparation of any plans and  specifications
and prior to commencement of any work in the Leased Premises, including, without
limiting the  generality  of the  foregoing,  any  demolition,  construction  or
alterations,  the  Tenant  has  determined  through  testing at its own cost and
expense what Pollutants,  if any, are present in the Leased Premises and, if the
Tenant  fails  to do so,  the  Tenant  acknowledges  and  agrees  that it  shall
indemnify  and save  harmless the  Landlord  from and against any and all Claims
growing or arising out of the Tenant's failure to do so;

      (c) be made only after  detailed  plans and  specifications  therefor have
been  submitted to the Landlord and received the prior  written  approval of the
Landlord,  all at the expense of the Tenant, and should the Landlord provide its
written  approval,  such approval  shall not be deemed to mean that the proposed
changes,  additions or improvements comply with any existing or future municipal
by-laws or any other applicable laws, by-laws, codes or requirements.  All costs
incurred  with respect to such  approval  shall be at the expense of the Tenant.
Any changes,  additions and/or improvements affecting the Building's electrical,
mechanical and/or  structural  components shall only be performed by contractors
selected  by  the  Landlord  (the  "Landlord's  Contractors").  A  list  of  the
Landlord's Contractors is available upon request;

      (d) equal or exceed the then current standard for the Building;

      (e) be  carried  out in a good and  workmanlike  manner  and,  subject  to
Subsection  7.04(c),  only by Persons  selected  by the Tenant and  approved  in
writing by the Landlord who shall,  if required by the Landlord,  deliver to the
Landlord before commencement of the work,  performance and payment bonds as well
as proof of workers'  compensation  and public  liability  and  property  damage
insurance  coverage,  with the Landlord and the Landlord's agent and nominee (if
any) named as  additional  insureds,  in amounts,  with  companies and in a form
reasonably satisfactory to the Landlord, which shall remain in effect during the
entire period in which the work will be carried out; and

      (f) be made only after the Tenant has provided to the Landlord evidence of
all requisite permits and licences and any other information reasonably required
by the Landlord,

Upon  completion  of such  change,  addition or  improvement,  the Tenant  shall
provide to the Landlord  as-built drawings and/or a CAD disk of same in a format
useable by the Landlord,  together with evidence satisfactory to the Landlord of
a final inspection of such change, addition or improvement (including inspection
of mechanical and electrical  systems where  applicable) by the authority  which
issued the permit or licence for same.

                                       20
<PAGE>

7.05 Tenant's  Trade Fixtures and Personal  Property.  The Tenant may install in
the Leased  Premises its usual trade fixtures and personal  property in a proper
manner;  provided that no  installation or repair shall interfere with or damage
the  mechanical or electrical  systems or the structure of the Building.  If the
Tenant  is not then in  default  hereunder,  the  trade  fixtures  and  personal
property  installed  in the Leased  Premises by the Tenant may be removed by the
Tenant from time to time in the ordinary  course of the Tenant's  business or in
the course of reconstruction, renovation or alteration of the Leased Premises by
the Tenant,  subject to the provisions of Article  14.00,  and provided that the
Tenant promptly repairs at its own expense any damage to the Leased Premises and
the Building  resulting from the  installation  and removal and provided further
that in the event of removal of trade fixtures,  except at the expiration of the
Term, the Tenant shall promptly  replace such trade fixtures with trade fixtures
of equal or greater  quality  and value,  subject to the  provisions  of Section
14.01.

7.06  Maintenance  and  Repair.  Except  to the  extent  that  the  Landlord  is
specifically  responsible  therefor under this Lease,  the Tenant,  at its cost,
shall  maintain,   repair  and  replace  the  Leased  Premises,   all  Leasehold
Improvements  and all  apparatus  therein  in good order and  condition,  and in
compliance  with  the  requirements  of  all  authorities  having   jurisdiction
including without limitation:

      (a) keeping the Leased  Premises and the immediate  surrounding  area in a
clean and tidy condition and free of debris and garbage;

      (b)  repainting  and  redecorating  the Leased  Premises  and cleaning and
maintaining  window coverings and carpets at reasonable  intervals as reasonably
required by the Landlord;

      (c) making  repairs  and  replacements  as needed to the  Leased  Premises
including,  without limitation,  to internal and external glass within or on the
exterior of the leased  Premises  (with the  exception of glass  comprising  the
curtain  wall),  doors,  hardware,  partitions,  walls,  fixtures,  lighting and
plumbing fixtures, wiring, piping, ceilings, floors and thresholds in the Leased
Premises; and

      (d) keeping the Leased  Premises in such  condition  as to comply with the
requirements of any authority having jurisdiction.

7.07  Inspection.  The Landlord and its  Consultants may from time to time enter
upon the Leased Premises:

      (a) to inspect the Leased Premises and its condition; and

      (b) to inspect any work being done by the Tenant both during the course of
such work and following completion thereof.

If the  Landlord or its agents shall  determine  that the work being done by the
Tenant is in breach of this Lease or fails to comply  with the  requirements  of
this Lease in any  respect,  the Tenant  shall  forthwith  remedy such breach or
failure to comply and shall desist from  continuing  the same. The Tenant shall,
at its own cost, make good any deficiency in such work and remedy any failure to
comply with the requirements of this Lease.

                                       21
<PAGE>

7.08 Failure to Maintain.  If the Tenant fails to perform any  obligation  under
this Article 7.00, then on not less than five (5) days notice to the Tenant, the
Landlord  may enter the Leased  Premises  and  perform  the  obligation  without
liability  to the Tenant  for any loss or damage  thereby  incurred.  The Tenant
shall promptly after  receiving the Landlord's  invoice  therefor  reimburse the
Landlord for all costs  incurred by the Landlord in  performing  the  obligation
plus twenty percent (20%) of the costs for overhead and supervision.

7.09     Liens.  The Tenant shall:

      (a) pay promptly  when due all costs for work done or caused to be done or
goods  affixed by the Tenant in the Leased  Premises  which could  result in any
lien or  encumbrance  on the  Landlord's  interest  in the  Project  or any part
thereof,  or the  filing or  registration  of any  security  interest  or notice
thereof;

      (b) keep the title to the  Project,  including  every part thereof and the
Leasehold  Improvements,  free and clear of any lien,  encumbrance  or  security
interest or notice thereof; and

      (c) indemnify and hold  harmless the Landlord  against any Claims  arising
out of the supply of goods, materials, services or labour for the work.

The Tenant shall immediately notify the Landlord of any lien, encumbrance, claim
of lien,  security interest,  or notice thereof or other action of which it has,
or reasonably should have,  knowledge and which affects the title to the Project
or any part thereof and, except for those  contemplated by Section 15.25,  shall
cause the same to be removed  within five (5) business days (or such  additional
time as the Landlord may consent to in writing),  failing which the Landlord may
take such action as the Landlord  deems  necessary to remove same and the entire
cost  thereof  shall  immediately  become  due and  payable by the Tenant to the
Landlord.  The Tenant  shall not affix or cause to be affixed to the Project any
goods  acquired  under  conditional  sale or with  respect  to which  any  lien,
encumbrance or security interest exists. The Landlord may from time to time post
such  notices in such places on the Leased  Premises as the  Landlord  considers
advisable  to prevent or limit the creation of any liens upon the Project or any
part thereof.

7.10 Roof.  The Tenant  shall not be  entitled  to install  upon the roof of the
Building any equipment except as consented to in writing by the Landlord,  which
consent may be arbitrarily  withheld,  but if given shall be subject to whatever
conditions  the  Landlord,  in  its  sole  discretion,  deems  necessary  in the
circumstances.

                               ARTICLE 8.00 TAXES

8.01 Taxes  Payable by Landlord.  The Landlord  covenants  and agrees to pay all
Taxes  assessed  against the Landlord or the Project on account of its ownership
when due (except for Business Taxes payable  directly to the taxing authority by
the Tenant  under  Subsection  8.02(b)  and  similar  taxes  levied or  assessed
separately  from Taxes and  payable  directly to the taxing  authority  by other
tenants or occupants of the Project) and subject to the  provisions  hereinafter
contained in this Article 8.00.  Provided  however,  that the Landlord may defer
payment of any such Taxes or defer  compliance  with any statute,  law,  by-law,
regulation or ordinance in  connection  with the levy of such Taxes in each case
to the fullest extent permitted by law as long as it shall diligently  prosecute
any contest or appeal of such Taxes.

                                       22
<PAGE>

8.02 Taxes  Payable by Tenant.  The Tenant shall pay promptly when due all Taxes
upon or on account of the following:

      (a) to the Landlord, the Tenant's Proportionate Share of Taxes; and

      (b)  to  the  taxing  authority  or to  the  Landlord  at  the  Landlord's
direction,  any Taxes imposed or assessed  against or in respect of the personal
property and Leasehold  Improvements  of the Tenant in the Leased Premises or in
respect  of any  business  operations  carried  on or in  respect  of the use or
occupancy  thereof by the Tenant or by any  subtenant or licensee,  if levied or
assessed  separately  from Taxes upon the remainder of the Land and Building and
referred to herein as "Business Taxes".

The Tenant  agrees to provide to the  Landlord  within three (3) days of receipt
thereof,  an original or  duplicate  copy of any  separate  bill for Taxes.  The
Tenant shall deliver  promptly,  upon request of the Landlord,  receipts for all
such  payments  and will  furnish  such other  information  as the  Landlord may
require.

8.03 Tax Increases Attributable to Tenant. If any Taxes in respect of the Leased
Premises or Project are greater than they otherwise would have been by reason of
the  constitution or ownership of the Tenant,  the use of the Leased Premises by
the Tenant,  the school support of the Tenant,  or any other reason  peculiar to
the Tenant,  the portion of such Taxes in each year attributable to such reason,
as determined  by the  Landlord,  shall be paid by the Tenant to the Landlord at
least  fifteen  (15)  days  prior  to the due date for  payment  thereof  by the
Landlord, and in addition to Property Taxes and other Taxes otherwise payable by
the Tenant under this Lease.

8.04 GST.  The Tenant  shall pay to the  Landlord the amount of all GST accruing
due with respect to Rent at the time the Rent is due and payable to the Landlord
under this Lease.  The Tenant's  obligation  to pay GST under this Section shall
not be limited or precluded by any  limitation  contained in this Lease upon the
Landlord's right to recover or receive payment from the Tenant of taxes upon the
Landlord's income or profits or otherwise.

8.05 Landlord's  Election.  Notwithstanding  that any Taxes  (including  without
limitation, any of the foregoing payable by the Tenant under Subsection 8.02(a))
may be  separately  imposed,  levied,  assessed  or charged  by the  appropriate
authority  for or in respect of the Leased  Premises  and other  portions of the
Project,  the  Tenant  shall  nevertheless  be  obligated  to pay  the  Tenant's
Proportionate   Share  of  Taxes  as  part  of  the  Tenant's  Occupancy  Costs.
Notwithstanding  the  foregoing,  the Tenant's  Proportionate  Share of Taxes so
determined may be adjusted by the Landlord,  acting  reasonably and equitably to
the extent necessary,  to ensure that the Tenant's  Proportionate Share of Taxes
is the same as it would have been following application of any special provision
of real property tax related legislation applicable to this Lease.

8.06 Right to Contest.  Each of the Landlord and the Tenant (provided the Tenant
is legally  entitled to do so) shall have the right to contest in good faith the
validity or amount of any Taxes which, in the case of the Landlord, the Landlord
is  responsible  to pad under this Article 8.00,  and which,  in the case of the

                                       23
<PAGE>

Tenant,  the Tenant is responsible to pay under Subsection 8.02(b) and for which
it is separately assessed.  Notwithstanding anything to the contrary herein, the
Tenant may,  upon prior  written  notice to the  Landlord,  defer payment of any
amount  payable by it pursuant to Subsection  8.02(b) for which it is separately
assessed, to the extent permitted by law; provided that no contest by the Tenant
shall  involve  the  possibility  of  forfeiture,  sale  or  disturbance  of the
Landlord's  interest in the Leased  Premises or the imposition of any penalty or
interest,  charge or lien and that, upon the final  determination of any contest
by the Tenant,  the Tenant shall immediately pay and satisfy the amount found to
be due, together with any costs,  penalties and interest. If, as a result of any
contest by the Tenant, any tax, rate, levy,  assessment,  fee or other charge is
increased,  the Tenant shall be responsible for the full amount of such increase
in respect of the period to which the contest  relates and to any subsequent tax
periods which commence during the Term.

The Tenant shall not contest any amount payable by it under  Subsection  8.02(a)
but may contest any amount payable by it under Subsection  8.02(b) or appeal any
assessment therefor subject to complying with the following:

      (a) the Tenant  shall  deliver to the  Landlord  any  notices of appeal or
other like instrument and obtain the Landlord's  consent thereto,  which consent
shall not be unreasonably withheld, before filing the same;

      (b) the Tenant shall  deliver  whatever  security the Landlord  reasonably
requires;

      (c) the Tenant shall  promptly  and  diligently  prosecute  the contest or
appeal at its sole expense; and

      (d) the Tenant shall keep the Landlord fully informed thereof.

              ARTICLE 9.00 INSURANCE, LIABILITY AND ENVIRONMENTAL

9.01 Landlord's  Insurance.  During the Term, the Landlord shall place insurance
coverage on and with respect to the Project  excluding the area(s) to be insured
by the Tenant as set out in Section  9.02,  which  coverage  shall  include  the
following, if available at reasonable cost in the opinion of the Landlord:

      (a) all risks insurance for the full reconstruction  value of the Project,
excluding Leasehold Improvements, as determined by the Landlord;

      (b) as an extension to the  insurance  maintained  pursuant to  Subsection
9.01(a), insurance on the rental income derived by the Landlord from the Project
on a gross  rental  income form with a period of  indemnity of not less than the
period as estimated by the Landlord from time to time which would be required to
rebuild and, if necessary, to re-tenant the Project in the event of the complete
destruction thereof;

      (c) boiler and machinery  insurance,  including  repair or replacement and
rental income coverage, if applicable;

                                       24
<PAGE>

      (d) plate glass  insurance (not  including  plate glass fronting or within
the Leased Premises) if deemed appropriate by the Landlord;

      (e) commercial general liability insurance; and

      (f) such other  insurance  which is or may become  customary or reasonable
for owners of projects similar to the Project to carry in respect of loss of, or
damage to, the Project or liability arising therefrom.

The insurance referred to in this Section shall be carried in amounts determined
reasonably  by the Landlord.  The insurance  shall be written in the name of the
Landlord with loss payable to the Landlord and to any mortgagee  (including  any
trustee  under a deed of trust and  mortgage)  of the Project from time to time.
The policies of insurance referred to in Subsections 9.01(a),  (b), (c), (d) and
(e) shall contain a waiver of the insurer's  right of subrogation as against the
Tenant if available to the Landlord at no additional cost.

Notwithstanding any contribution by the Tenant to insurance premiums as provided
for in this Lease,  no  insurable  interest is  conferred  upon the Tenant under
policies carried by the Landlord. Except as specifically provided in this Lease,
the Landlord shall in no way be  accountable to the Tenant  regarding the use of
the insurance proceeds arising from any Claims.

9.02  Tenant's  Insurance.  At its own  expense  the  Tenant  shall take out and
thereafter  maintain in force at all times during the Term and at all times when
the  Tenant is in  possession  of the  Leased  Premises  insurance  policies  as
follows:

      (a)  all  risks  insurance  on  Leasehold  Improvements  and on all  other
property of every description,  nature and kind owned by the Tenant or for which
the Tenant is legally liable, which is installed,  located or situate within the
Leased Premises or elsewhere in the Project,  including without limitation,  all
inventory or stock-in-trade in an amount not less than the full replacement cost
thereof without deduction for depreciation; such insurance shall be subject to a
replacement  cost  endorsement  and shall include a stated  amount  co-insurance
clause and a breach of conditions clause;

      (b)  commercial  general  liability  insurance  to  respond to any and all
incidents  occurring in the Leased  Premises in the minimum amount of $3,000,000
per  occurrence  including  the  following  extensions:  owners and  contractors
protective;  limited  pollution  coverage  endorsement;  products and  completed
operations;   personal  injury;   occurrence  basis  property  damage;   blanket
contractual and non-owned automobile liability; such insurance shall include the
Landlord  and the  Landlord's  agent and  nominee  (if any) as named  additional
insureds,  and shall protect and indemnify the Landlord and the Landlord's agent
and nominee (if any) in respect of all Claims,  including  Claims by the Tenant,
as if the Landlord and the Landlord's agent and nominee (if any) were separately
insured;  such  insurance  shall include cross  liability  and  severability  of
interest clauses;

      (c) boiler and machinery  insurance,  if applicable,  including  repair or
replacement  endorsement in an amount satisfactory to the Landlord and providing
coverage with respect to all objects  introduced  into the Leased Premises by or
on behalf of the Tenant or otherwise constituting Leasehold Improvements;

                                       25
<PAGE>

      (d) plate glass  insurance on all  internal  and external  glass within or
fronting the Leased Premises;

      (e) business interruption insurance on the profit form providing all risks
coverage  with a period of  indemnity  of not less than  twelve  (l2) months and
subject to a stated amount co-insurance clause; and

      (f) any other form of  insurance in such amounts and against such risks as
the Landlord may from time to time reasonably require.

The Tenant  acknowledges  and  agrees  that it shall be solely  responsible  for
insuring  the  Leasehold  Improvements,  its  equipment  and stock and any other
property owned or brought into the Leased Premises by the Tenant whether affixed
to the Building or not.

The  insurance  policies  referred to in this  Section  shall be subject to such
higher limits as the Tenant, or the Landlord acting reasonably, or any mortgagee
of the  Landlord's  interest in the Project may require  from time to time.  The
policies of insurance  referred to in Subsections  9.02(a),  (b), (c), (d), (e),
and (f) shall contain a waiver of the insurer's  right of subrogation as against
the  Landlord.  The Tenant  hereby  waives  its right of  recovery  against  the
Landlord,  its employees  and those for whom the Landlord is in law  responsible
with  respect  to  occurrences  required  to be  insured  against  by the Tenant
hereunder.  Any and all deductibles in the Tenant's  insurance policies shall be
borne  solely by the  Tenant  and  shall not be  recovered  or  attempted  to be
recovered  from  the  Landlord.   In  addition,   all  such  policies  shall  be
non-contributing  with,  and will apply  only as primary  and not excess to, any
insurance proceeds available to the Landlord.

The Tenant shall provide to the Landlord at the  commencement of the Term and at
least thirty (30) days prior to the renewal of all insurance referred to in this
Section 9.02, and promptly at any time upon request,  a certificate of insurance
evidencing the insurance  coverage  maintained by the Tenant in accordance  with
this Section 9.02. The delivery to the Landlord of a certificate of insurance or
any  review  thereof  by or on  behalf  of the  Landlord  shall  not  limit  the
obligation  of the Tenant to provide  and  maintain  insurance  pursuant to this
Section 9.02 or derogate from the Landlord's  rights if the Tenant shall fail to
fully insure.

All policies shall provide that the insurance  shall not be cancelled or changed
to the prejudice of the Landlord without at least thirty (30) days prior written
notice given by the insurer to the Landlord.  All policies of insurance shall be
placed with a company licensed to sell commercial insurance in Canada.

The Tenant  acknowledges  and agrees that, if it fails to obtain and maintain in
force any of the  insurance  policies  set out in this  Section  9.02,  then the
Tenant shall indemnify the Landlord in respect of any losses arising therefrom.

9.03 Placement of Tenant's  Insurance by Landlord.  If the Tenant fails to place
or maintain all or any of the  insurance  coverage  referred to in Section 9.02,
the Landlord may, at its option,  place all or any part of such insurance in the
name of or on behalf of the Tenant and the Tenant shall pay to the Landlord upon
demand  all  costs  incurred  by the  Landlord  in so doing  including,  without
limitation,  the  premium  or  premiums  for such  insurance  together  with the
Landlord's administrative fee of fifteen percent (15%) of such premium.

                                       26
<PAGE>

9.04 Limitation of Landlord's Liability.  The Landlord, its agents and employees
and any Person for whom it is in law  responsible  shall not be liable under any
circumstances  for any damage  caused by anything  done or omitted to be done by
any other  tenant of the  Project or any  Person for whom such  tenant is in law
responsible or any damage resulting from the exercise of the Landlord's  control
over the Project or any part thereof.

9.05     Environmental Issues.

(1)  Landlord's  Requirements  - The Tenant  shall not bring into or allow to be
present in the Leased Premises or the Project any Pollutants  except such as are
disclosed in Schedule "H" hereto. If the Tenant shall bring,  create,  discharge
or release upon,  in or from the Project,  including  the Leased  Premises,  any
Pollutants, whether or not disclosed in Schedule "H" and whether during the Term
of this Lease or any prior lease by the Tenant,  then such  Pollutants  shall be
and remain the sole property of the Tenant and the Tenant shall promptly  remove
same at its sole cost at the  expiration  or sooner  termination  of the Term or
sooner if required by the Landlord.

(2) Governmental  Requirements - If, during the Term or any renewal or extension
of this  Lease or at any  time  thereafter,  any  governmental  authority  shall
require the clean-up of any Pollutants:

      (a) held in, discharged in or from, released from, abandoned in, or placed
upon the Leased  Premises or the Project by the Tenant or its employees or those
for whom it is in law responsible; or

      (b)  released or disposed of by the Tenant or its  employees  or those for
whom it is in law responsible;

whether  during  the  Tenant's  occupancy  of the Leased  Premises  or any other
premises in the Project  pursuant to this Lease or any prior lease by the Tenant
of the Leased  Premises or any other  premises in the  Project,  then the Tenant
shall, at its own expense,  carry out all required work, including preparing all
necessary  studies,  plans  and  approvals  and  providing  all  bonds and other
security required by any governmental  authority or required by the Landlord and
shall  provide  full  information  with respect to all such work to the Landlord
provided  that the  Landlord  may, at its  option,  perform any such work at the
Tenant's sole cost and expense, payable on demand as additional Rent.

(3) Environmental  Covenants - In addition to and without  restricting any other
obligations or covenants herein, the Tenant covenants that it will:

      (a) comply in all respects  with all  Environmental  Laws  relating to the
Leased Premises or the use of the Leased Premises;

      (b)  promptly  notify  the  Landlord  in  writing  of  any  notice  by any
governmental  authority  alleging a possible violation of or with respect to any
other matter  involving  any  Environmental  Laws  relating to operations in the
Leased  Premises or relating to any Person for whom it is in law  responsible or
any notice from any other party concerning any release or alleged release of any
Pollutants; and

                                       27
<PAGE>

      (c) permit the Landlord to:

            (i)  enter  and  inspect  the  Leased  Premises  and the  operations
            conducted therein; and

            (ii) conduct tests and environmental assessments or appraisals; and

            (iii) remove samples from the Leased Premises; and

            (iv) examine and make copies of any documents or records relating to
            the  Leased  Premises  and  interview  the  Tenant's   employees  as
            necessary; and

      (d) promptly notify the Landlord of the existence of any Pollutants in the
Project,

(4) Environmental Indemnification - The Tenant shall, during the Term and at all
times thereafter, indemnify and hold the Landlord harmless at all times from and
against any and all losses, damages,  penalties, fines, costs, fees and expenses
(including  legal fees on a solicitor and client or substantial  indemnity basis
and Consultants' fees and expenses) resulting from:

      (a) any breach of or non-compliance with the environmental obligations and
covenants of the Tenant as set out in this Lease; and

      (b) any legal or  administrative  action  commenced  by, or claim  made or
notice from, any third party,  including,  without limitation,  any governmental
authority, to or against the Landlord and pursuant to or under any Environmental
Laws or  concerning  a release or alleged  release of  Pollutants  at the Leased
Premises into the environment and related to or as a result of the operations of
the Tenant or those acting under its authority or control at the Leased Premises
or any other premises in the Project,  and any and all costs associated with air
quality  issues,  if any, and whether during the Term of this Lease or any prior
lease by the Tenant of the Leased Premises or any other premises in the Project.

                      ARTICLE 10.00 DAMAGE AND DESTRUCTION

10.01 Limited Damage to Leased Premises, Access or Services. If during the Term,
the Leased  Premises or any part  thereof,  or other  portions  of the  Building
providing  access  or  Services  essential  to the  Leased  Premises,  shall  be
destroyed  or damaged by any hazard  against  which the Landlord is obligated to
insure  pursuant to Section 9.01,  the  Landlord,  if permitted by law to do so,
shall  proceed  with  reasonable  diligence to rebuild and restore or repair the
Leased Premises or comparable premises or such access routes or Service systems,
as the case may be, in conformance  with current laws to the extent of insurance
proceeds  received.  The covenants of the Tenant to repair shall not include any
repairs of damage  required to be made by the Landlord under this Section 10.01.
For greater  certainty,  it is  understood  and agreed  that,  upon  substantial
completion of the Landlord's work, the Tenant shall repair or restore the Leased
Premises as required by Section  7.06,  Rent  payable by the Tenant  shall abate
from  the  date  of such  damage  or  destruction  to the  date  of  substantial

                                       28
<PAGE>

completion of the Landlord's  work as determined by the Landlord's  architect or
engineer or restoration of access or Services,  as the case may be. If less than
all of the Leased  Premises  is  destroyed  or damaged as  contemplated  in this
Section  10.01,  Rent  payable by the Tenant  shall  abate from the date of such
damage or destruction  to the date of  substantial  completion of the Landlord's
work in the same  proportion  as the  Rentable  Area of the Leased  Premises  so
damaged or destroyed is of the total Rentable Area of the Leased Premises.

10.02  Major  Damage  to Leased  Premises.  Notwithstanding  any other  right of
termination  contained  herein,  if the  Leased  Premises  shall be  damaged  or
destroyed by any hazard  against which the Landlord is obligated to insure under
this Lease, and if in the opinion of the Landlord's architect or engineer, given
within 30 business  days of the  happening of said damage or  destruction,  said
damage  or  destruction  is to the  extent  that the  Leased  Premises  shall be
incapable of being  rebuilt or repaired or restored  with  reasonable  diligence
within 6 months after the  occurrence  of such damage or  destruction,  then the
Landlord  may, at its option,  terminate  this Lease by notice in writing to the
Tenant  given  within 15 days after the giving of the opinion by the  Landlord's
architect  or  engineer.  If such  notice is given by the  Landlord  under  this
Section  10.02,  then this Lease shall  terminate on the date of such notice and
the Tenant  shall  immediately  surrender  the Leased  Premises and all interest
therein to the  Landlord and Rent shall be  apportioned  and shall be payable by
the Tenant only to the date of such damage or  destruction  and the Landlord may
thereafter re-enter and repossess the Leased Premises. For greater certainty, it
is understood  and agreed that:  (a) if the Landlord does not elect to terminate
this Lease as aforesaid, upon substantial completion of the Landlord's work, the
Tenant shall repair or restore the Leased  Premises as required by Section 7.06;
and (b) if the Landlord elects to terminate this Lease as aforesaid,  the Tenant
shall  pay to the  Landlord  forthwith  upon  demand  the cost of  repairing  or
restoring the Leased  Premises,  as determined  by the  Landlord's  architect or
engineer, acting reasonably (but not in any event to exceed the replacement cost
of the then  existing  Leasehold  Improvements),  by way of  insurance  proceeds
available to the Tenant or otherwise.

10.03 Damage to Building.  Notwithstanding anything to the contrary contained in
this Lease or that the Leased Premises may not be affected, if in the reasonable
opinion  or  determination  of the  Landlord  or  the  Landlord's  architect  or
engineer,  rendered  within thirty (30) business days of the happening of damage
or  destruction,  the Building  shall be damaged or destroyed to the extent that
any one or more of the following conditions exist:

      (a) in the reasonable opinion of the Landlord the Building must be totally
or partially demolished, whether or not to be reconstructed in whole or in part;
or

      (b) in the reasonable opinion of the Landlord's  architect or engineer the
Building  shall be  incapable  of being  rebuilt or repaired  or  restored  with
reasonable  diligence  within six (6) months after the occurrence of such damage
or destruction; or

      (c)  any  tenant  of  the  Building  which,  in  the  Landlord's  absolute
discretion,  is a major tenant of the Building becomes entitled to terminate its
lease as a result of such damage or destruction; or

                                       29
<PAGE>

      (d) more than thirty-five  percent (35%) of the Total Rentable Area of the
Building is damaged or  destroyed as  reasonably  determined  by the  Landlord's
architect or engineer; or

      (e) any or all of the heating, ventilating, air conditioning,  electrical,
mechanical  or elevator  systems in the  Building  are damaged or  destroyed  as
reasonably determined by the Landlord's architect or engineer;

then the  Landlord  may at its sole  option  terminate  this  Lease by notice in
writing to the Tenant effective thirty (30) days after the notice.  If notice is
given by the Landlord under this Section 10.03,  then this Lease shall terminate
from the date of such  notice and the Tenant  shall  immediately  surrender  the
Leased  Premises  and all  interest  therein to the  Landlord  and Rent shall be
apportioned  and shall be payable by the Tenant  only to the data of such notice
and the Landlord may thereafter  re-enter and repossess the Leased Premises.  If
the Building is damaged to the extent  described  in this Section  10.03 and the
Landlord  does not  terminate  this Lease,  the Landlord  will, to the extent of
insurance  proceeds  received,  rebuild or repair the Building to base  building
standards,   but  the  rebuilt  or  repaired   Building   may  be  different  in
configuration and design from that comprising the Project prior to the damage or
destruction.

10.04 No Abatement. Except as specifically provided in this Article 10.00, there
shall be no abatement  of Rent and the  Landlord  shall have no liability to the
Tenant by reason of any injury to,  loss of or  interference  with the  Tenant's
business or property arising directly or indirectly from fire or other casualty,
howsoever caused,  or from the making of any repairs  resulting  therefrom or to
any portion of the Building or the Leased Premises.

10.05 Notify Landlord.  The Tenant shall immediately  notify the Landlord or its
representative  in the  Project of any  accident or defect in the  Project,  the
Leased  Premises or any systems thereof and, as well, of any matter or condition
which may  cause  injury or damage  to the  Project  or any  person or  property
located therein.

10.06 Expropriation.  In the event of Expropriation of all or part of the Leased
Premises  and/or the Building,  neither the Landlord nor the Tenant shall have a
claim  against the other for the  shortening  of the Term,  nor the reduction or
alteration of the Leased  Premises or the Building.  The Landlord and the Tenant
shall  each look  only to the  Expropriating  authority  for  compensation.  The
Landlord and the Tenant agree to cooperate with one another so that each is able
to obtain the maximum  compensation from the  Expropriating  authority as may be
permitted  in law in  relating  to  their  respective  interests  in the  Leased
Premises and the Building. Nothing herein contained shall be deemed or construed
to prevent the Landlord or the Tenant from enforcing and prosecuting a claim for
the  value of  their  respective  interests  in any  Expropriation  proceedings.
However, to the extent that a part of the Project other than the Leased Premises
is  Expropriated,  the full proceeds paid or awarded therefor will belong solely
to the  Landlord  and the Tenant will assign to the Landlord any rights it might
have or acquire in respect of such  proceeds  or awards and will  execute  those
documents that the Landlord  reasonably requires in order to give effect to this
intention.

Where  used  in this  Section  10.06  "Expropriation"  means  expropriated  by a
governmental or municipal  authority,  or transferred,  conveyed or dedicated in
contemplation   of   a   threatened   expropriation   and   "Expropriated"   and
"Expropriating" have corresponding meanings.

                                       30
<PAGE>

                             ARTICLE 11.00 DEFAULT

11.01 Arrears.  The Tenant shall pay monthly to the Landlord  interest at a rate
per annum equal to the lesser of the Prime Rate plus five  percent  (5%) and the
maximum  rate  permitted  by  applicable  law upon all Rent  required to be paid
hereunder from the due date for payment thereof until the same is fully paid and
satisfied.

In  addition  to the  interest  charges,  in order to cover  the  extra  expense
involved in handling  delinquent  payments,  the Tenant,  at the Landlord's sole
option,  shall pay a "Late  Charge" of One Hundred  Dollars  ($100.00)  when any
installment  of Rent is received by the  Landlord  after the  relevant  due date
thereof.

In addition,  if any cheque presented to the Landlord by the Tenant representing
payment of Rent is not honoured by the Tenant's  bank or such cheque is returned
to the Landlord  indicating that there are not sufficient  funds in the Tenant's
account to honour such  cheque,  the Tenant  shall pay to the Landlord a "N.S.F.
Charge" of Fifty Dollars ($50.00) for the first such occurrence; One Hundred and
Fifty  Dollars  ($150.00)  for the second such  occurrence;  and Two Hundred and
Fifty Dollars ($250.00) for each such successive  occurrence  thereafter.  It is
hereby  understood  and agreed  that the Late  Charge  and the N.S.F.  Charge is
charged as Additional Rent, and not as a penalty or interest, for the purpose of
defraying the  Landlord's  expenses  incident to the  processing of such overdue
payments  and that such  Additional  Rent is due and payable on and from the day
immediately  following the due date of such overdue  payments or, if no due date
is specified in this Lease,  then on the tenth (10th) day  following  demand for
same by the Landlord.

At the sole option of the Landlord and upon notice to the Tenant,  the amount of
the Late  Charge and the N.S.F.  Charge  shall be subject to  increase  for each
succeeding Lease Year on the basis of the increase in C.P.I. for such Lease Year
over the said index for the previous Lease Year.

11.02 Costs of Enforcement.  The Tenant shall indemnify the Landlord against all
costs and charges (including legal fees on a solicitor and client or substantial
indemnity basis and the Landlord's reasonable administration charges) reasonably
incurred either during or after the Term in enforcing  payment of Rent hereunder
and in obtaining  possession of the Leased  Premises after default of the Tenant
or upon  expiration  or earlier  termination  of this Lease or in enforcing  any
covenant,  proviso or agreement of the Tenant herein contained or in determining
the Landlord's rights or the Tenant's  obligations under this Lease or both. All
such costs and  charges  shall be paid by the Tenant to the  Landlord  forthwith
upon demand.

11.03  Performance of Tenant's  Obligations.  All covenants and agreements to be
performed  by the Tenant under any of the terms of this Lease shall be performed
by the Tenant, at the Tenant's sole cost and expense,  and without any abatement
of Rent. If the Tenant fails to perform any act to be performed by it hereunder,
then, in the event of an emergency,  either real or perceived, or if the failure
continues  for ten (10) days  following  notice  thereof,  the Landlord may (but
shall not be  obligated  to) perform the act without  waiving or  releasing  the
Tenant from any of its obligations  relative thereto, but having commenced to do
so may cease to do so without completing  performance thereof. All sums paid and
costs  incurred by the Landlord in so performing  the act,  plus twenty  percent
(20%) of the cost for overhead and supervision together with interest thereon at
the rate set out in Section  11.01 from the date  payment  was made or such cost
was incurred by the Landlord,  shall be payable by the Tenant to the Landlord on
demand.

                                       31
<PAGE>

11.04 Events of Default. If and whenever:

      (a) all or any part of the Rent hereby reserved is not paid when due; or

      (b) the Term or any  goods,  merchandise,  stock  in  trade,  chattels  or
equipment of the Tenant or any Indemnifier is or are seized or taken or exigible
in execution or in attachment or if a creditor takes possession  thereof or if a
writ of execution is issued against the Tenant or any Indemnifier; or

      (c) the  Tenant or any  Indemnifier  or any Person  bound to  perform  the
obligations of the Tenant in this Lease either as guarantor or indemnifier or as
one of the parties  constituting the Tenant takes any steps in furtherance of or
suffers  any order to be made for its  winding-up  or other  termination  of its
corporate  existence  or becomes  insolvent or commits an act of  bankruptcy  or
becomes  bankrupt or takes the  benefit of any statute  that may be in force for
bankrupt or insolvent  debtors or becomes  involved in voluntary or  involuntary
winding-up  proceedings or if a receiver or receiver/manager  shall be appointed
for all or any part of the business, property, affairs or revenues of the Tenant
or such Indemnifier or Person; or

      (d) the  Tenant  makes a bulk  sale of its  goods or  moves or  commences,
attempts or threatens to move its goods, chattels and equipment, or any of them,
out of the Leased  Premises (other than in the normal course of its business) or
ceases to conduct business in the Leased Premises; or

      (e) the  Tenant  fails  to move  into or  take  possession  of the  Leased
Premises or vacates or abandons the Leased Premises in whole or in part or fails
to actively carry on business therein; or

      (f) the  Tenant or any  Indemnifier  or any Person  bound to  perform  the
obligations  of the  Tenant  pursuant  to this  Lease  either  as  guarantor  or
indemnifier or as one of the parties  constituting  the Tenant fails to observe,
perform and keep each and every covenant, agreement, provision,  stipulation and
condition herein  contained to be observed,  performed and kept by the Tenant or
the  Indemnifier  (other than payment of Rent) and persists in the failure after
ten (10) days' notice by the Landlord  requiring the Tenant to remedy,  correct,
desist or comply (or if any breach would  reasonably  require more than ten (10)
days to rectify,  unless the Tenant commences  rectification within the ten (10)
day notice period and thereafter promptly, effectively and continuously proceeds
with the rectification of the breach); or

      (g) any Transfer  occurs  except as permitted  by and in  accordance  with
Article 12.00; or

      (h) any  Pollutant  is present in the Leased  Premises  without  the prior
written  consent of the Landlord or otherwise than in compliance  with all terms
and conditions imposed by the Landlord in giving its consent thereto; or

                                       32
<PAGE>

      (i) a report or  statement  required  from the Tenant  under this Lease is
materially  false or misleading  except if it results from an innocent  clerical
error as determined by the Landlord; or

      (j) any policy of insurance taken out by either the Landlord or the Tenant
with respect to the Project  shall be cancelled by reason of any act or omission
of the Tenant; or

      (k) the Tenant fails to observe and perform the rules and regulations; or

      (l) the use of the Leased  Premises is not in accordance with that set out
in Item 9 of the Term Sheet;

then the Landlord  shall be entitled to any or all of those  remedies set out in
Section  11.05.  Each of the foregoing  circumstances  constitutes  an "Event of
Default" for the purposes of this Lease.

11.05  Remedies  on  Default.  Upon the  happening  of an Event of  Default  the
Landlord  may, at its option,  and in addition to and without  prejudice  to all
rights  and  remedies  of the  Landlord  available  to it  either  by any  other
provision  of this Lease or by statute or the general  law,  exercise any one or
more of the following remedies:

      (a) be entitled  to the full  amount of the  current  month's and the next
ensuing three (3) months'  installments of Rent which shall  immediately  become
due and payable and the Landlord may immediately distrain for the same, together
with any arrears then unpaid; or

      (b)  without  notice  or any form of legal  process,  forthwith  re-let or
sublet the Leased  Premises or any part or parts  thereof for  whatever  term or
terms  and at  whatever  rent and  upon  whatever  other  terms,  covenants  and
conditions the Landlord considers advisable including,  without limitation,  the
payment or granting of inducements all on behalf of the Tenant; and on each such
re-letting or subletting  the rent  received by the Landlord  therefrom  will be
applied  first to reimburse  the Landlord for any such  inducements  and for any
expenses,  capital or  otherwise,  incurred by the Landlord in making the Leased
Premises ready for re-letting or subletting;  and secondly to the payment of any
costs and expenses of  re-letting  or subletting  including  brokerage  fees and
legal fees on a solicitor and client or substantial  indemnity  basis; and third
to the payment of Rent;  and the residue,  if any,  will be held by the Landlord
and applied to payment of Rent as it becomes due and payable.  If rent  received
from  re-letting  or  subletting  during  any month is less than Rent to be paid
during that month  hereunder,  the Tenant will pay the deficiency  which will be
calculated  and paid monthly on or before the first day of every  month;  and no
re-letting or subletting of the Leased  Premises by the Landlord or entry by the
Landlord or its agents upon the Leased Premises for the purpose of re-letting or
subletting  or other act of the Landlord  relating  thereto  including,  without
limitation,  changing  or  permitting  a  subtenant  to  change  locks,  will be
construed  as an election on its part to  terminate  this Lease unless a written
notice of  termination  is given to the Tenant;  and if the  Landlord  elects to
re-let or sublet the Leased  Premises  without  terminating,  it may  afterwards
elect to terminate this Lease at any time by reason of any Event of Default then
existing; or

      (c) seize and sell such goods, chattels and equipment of the Tenant as are
in the Leased  Premises  and the Landlord  may,  but shall not be obligated  to,
apply the proceeds  thereof to all Rent to which the  Landlord is then  entitled
under this Lease. Any such sale may be effected by public auction,  private sale
or otherwise,  and either in bulk or by individual  item, or partly by one means
and partly by another, all as the Landlord in its sole discretion may decide; or

                                       33
<PAGE>

      (d)  terminate  this Lease by leaving upon the Leased  Premises  notice in
writing of the termination,  and such termination  shall be without prejudice to
the  Landlord's  right to damages,  it being agreed that the Tenant shall pay to
the  Landlord  on demand as  damages  the loss of income of the  Landlord  to be
derived from this Lease and the Leased Premises for the unexpired portion of the
Term had it not been terminated; or

      (e) re-enter into and upon the Leased  Premises or any part thereof in the
name of the whole and repossess and enjoy the same as of the  Landlord's  former
estate, anything herein contained to the contrary notwithstanding;

and the Tenant shall pay to the Landlord  forthwith  upon demand all expenses of
the Landlord in  re-entering,  terminating,  re-letting,  collecting sums due or
payable by the Tenant or realizing  upon assets  seized or otherwise  exercising
its rights and remedies under this Section 11.05 including  tenant  inducements,
leasing  commissions,  legal  fees on a  solicitor  and  client  or  substantial
indemnity  basis and all  disbursements  and the  expense of keeping  the Leased
Premises  in  good  order,  repairing  the  same  and  preparing  the  same  for
re-letting.

In addition,  and without limiting the generality of the foregoing provisions of
this Section  11.05,  upon the happening of an Event of Default,  and whether or
not this  Lease is  terminated  in  accordance  with  such  provisions:  (i) the
Landlord shall have no further liability to pay to the Tenant or any third party
any amount on account or in respect of a refund of any Security Deposit, prepaid
Rent or prepaid Taxes or any tenant inducement, leasehold improvement allowance,
lease takeover or lease subsidy or any other concession or inducement  otherwise
provided to the Tenant  under or with  respect to this Lease,  and any Rent free
period otherwise  provided to the Tenant hereunder shall be null and void and of
no further force or effect and Rent shall be payable in full  hereunder  without
regard to any such Rent free  period;  and (ii) any cash  allowance,  inducement
payment,  and the value of any other  benefit paid to or conferred on the Tenant
by or on behalf of the Landlord in connection  with the Leased  Premises or this
Lease shall be  recoverable  in full as additional  Rent and shall be payable to
the Landlord on demand.

11.06 Availability of Remedies. The Landlord may from time to time resort to any
or all of the rights and  remedies  available  to it upon the  occurrence  of an
Event of  Default  either by any  provision  of this  Lease or by statute or the
general law, all of which rights and remedies are intended to be cumulative  and
not  alternative,  and the express  provisions  herein as to certain  rights and
remedies are not to be interpreted  as excluding any other or additional  rights
or remedies available to the Landlord by statute or the general law.

11.07 Waiver.  If the Landlord  shall  overlook,  excuse,  condone or suffer any
default,  breach or  non-observance  by the Tenant of any obligation  hereunder,
this  shall  not  operate  as a  waiver  of the  obligation  in  respect  of any
continuing or subsequent  default,  breach or non-observance  and no such waiver
shall be implied but shall only be effective if expressed in writing.

                                       34
<PAGE>

The  Landlord's  acceptance  of Rent  after a  default  is not a  waiver  of any
preceding  default under this Lease even if the Landlord  knows of the preceding
default at the time of acceptance of the Rent. No term, covenant or condition of
this Lease shall be considered to have been waived by the Landlord or the Tenant
unless the waiver is in writing. The Tenant waives any statutory or other rights
in respect of abatement, set-off or compensation in its favour that may exist or
come into existence hereafter with respect to Rent.

11.08 Waiver of Exemption and Redemption.  Notwithstanding anything contained in
any statute now or  hereafter in force  limiting the right of distress,  none of
the  Tenant's  goods or chattels  in the Leased  Premises at any time during the
Term  shall be  exempt  from  levy by  distress  for Rent in  arrears,  and this
agreement  of the Tenant in this  Section may be pleaded as an estoppel  against
the Tenant.

11.09  Companies'  Creditors  Arrangement Act. By virtue of its interest in this
Lease,  the  importance  of the Tenant  continuing  to carry on  business in the
Leased Premises in accordance with this Lease, and the Landlord's entitlement to
damages  where this Lease is  terminated  by reason of an Event of Default,  the
Landlord  does and will (despite any changes in  circumstances  of the Tenant or
its business) constitute a separate class or category of creditor in any plan of
arrangement or other proposal  submitted by or on behalf of the Tenant under the
Companies'  Creditors  Arrangement  Act (Canada) or any similar  legislation for
bankrupt or insolvent debtors.

            ARTICLE 12.00 ASSIGNMENT SUBLETTING AND OTHER TRANSFERS

12.01 Request for Consent.  The Tenant shall not effect a Transfer of this Lease
or of all or part of the Leased Premises without the prior consent in writing of
the  Landlord,  which  consent  shall  not,  provided  no Event of  Default  has
occurred, be unreasonably withheld.  Provided that the Tenant shall, at the time
the Tenant shall  request the consent of the  Landlord,  deliver to the Landlord
such  information in writing (herein called the "required  information")  as the
Landlord may reasonably  require respecting the proposed  Transferee  including,
without   limitation,   the  name,  address,   nature  of  business,   financial
responsibility and standing of such proposed  Transferee.  Provided further that
after receiving such request,  the Landlord shall have the right, at its option,
to terminate this Lease if the request relates to all of the Leased Premises or,
if the request  relates to a portion of the Leased  Premises  only, to terminate
this Lease with respect to such portion,  by giving,  within ten (10) days after
receiving the required information, not less than thirty (30) days nor more than
sixty (60) days written  notice of  termination  to the Tenant.  In the event of
such  termination the Rent and other payments  required to be made by the Tenant
hereunder  shall be  adjusted  to the date of  termination  and in the case of a
partial  termination,  Rent shall abate in the  proportion  that the area of the
portion of the Leased  Premises for which this Lease is terminated  bears to the
area of the  Leased  Premises  and this  Lease  shall be  deemed  to be  amended
accordingly.

If the Landlord  elects to terminate  this Lease as to all or part of the leased
Premises,  the Tenant may by written  notice (given within ten (10) days or such
longer  time as the  Landlord  may  consent to in writing  after  receipt of the
Landlord's notice of termination)  notify the Landlord of the Tenant's intention
to  refrain  from the  Transfer  which  gave  rise to the  Landlord's  notice of
termination or of the Tenant's  intention to accept such notice of  termination.
If the Tenant gives written notice to the Landlord  within such time period that
it  intends to refrain  from such  Transfer,  then the  Landlord's  election  to
terninate this Lease in whole or in part shall become null and void,  Otherwise,
the  Landlord's  termination  shall take  effect on the date  stipulated  by the
Landlord in its notice of termination.

                                       35
<PAGE>

12.01(A)   Permitted Tenants:

The landlord  consents that Strategy  Insurance and Lux Group to be occupiers of
the premises.

12.02 Basis for  Consent.  Notwithstanding  anything in the  Landlord and Tenant
Act,  the  commercial  Tenancies  Act or any other  statute  or law and  without
limiting the grounds upon which a consent may be refused,  the Landlord will not
be deemed to be unreasonable in refusing consent when:

      (a) the giving of such  consent  would place the Landlord in breach of any
other tenant's lease in the Project or the proposed use by the Transferee is not
substantially the same as that of the Tenant;

      (b) such consent is requested for a mortgage,  charge,  debenture (secured
by floating charge or otherwise) or other encumbrance of, or in respect of, this
Lease or the Leased Premises or any part of them;

      (c) the  Transferee,  in the opinion of the Landlord,  (i) does not have a
history of successful  business operation in the business to be conducted in the
Leased  Premises,  (ii) does not have a good credit rating or a substantial  net
worth,  or (iii)  there is a  history  of  default  under  other  leases  by the
Transferee or by companies or  partnerships  that the Transferee was a principal
shareholder of or a partner in at the time of the default;

      (d) the  Transferee  is an existing  tenant in the Project or in any other
project  of the  Landlord;  or has been  within  three (3)  months  prior to the
proposed assignment or sublease taking effect;

      (e) the Landlord has other  premises in the Project  available for leasing
to the Transferee;

      (f) in the case of a  Transfer  to a  subtenant  of less  than the  entire
Leased Premises, if such would result in a configuration which:

            (i) would require access to be provided through space leased or held
            for lease to another  tenant or  improvements  to be made outside of
            the Leased Premises; or

            (ii) would, in the sole opinion of the Landlord,  be unreasonable to
            attempt to re-lease to a third party;

      (g) the  required  information  received  from the Tenant or the  proposed
Transferee is not sufficient in the Landlord's opinion to enable the Landlord to
make a determination concerning the matters set out above;

                                       36
<PAGE>

      (h) the use of the Leased  Premises  by the  proposed  Transferee,  in the
Landlord's  opinion  arrived at in good faith,  could result in excessive use of
the systems or  Services  in the  Project,  be  inconsistent  with the image and
standards of the Project or expose the occupants of the Project to risk of harm,
damage or interference with their use and enjoyment thereof, or reduce the value
of the Project;

      (i) the  proposed  Transferee  pays or gives or proposes to pay or give to
the Tenant money or other  consideration that is reasonably  attributable to the
desirability of the location of the Leased  Premises or to improvements  thereto
which are owned by the  Landlord or which the  Landlord has paid for in whole or
in part; or

      (j) the  proposed  Transferee  pays or  proposes  to pay to the  Tenant an
increase in rent over that payable by the Tenant under this Lease.

The Landlord shall not be liable for any claims, actions, damages,  liabilities,
losses or expenses of the Tenant or any proposed  Transferee  arising out of the
Landlord's unreasonably withholding its consent to any Transfer and the Tenant's
only  recourse  will be to  bring  an  application  for a  declaration  that the
Landlord must grant its consent to the Transfer.

In no event shall any Transfer to which the Landlord may have consented  release
or relieve the Tenant or any Indemnifier  from its obligations  fully to perform
all the terms,  covenants and conditions of this Lease, the Indemnity  Agreement
or any  renewals  or  extensions  of this  Lease or the Term,  on its part to be
performed and, in any event, the Tenant shall be liable for the Landlord's costs
incurred  in  connection  with the  Tenant's  request  for consent as set out in
Subsection 12.03(g).

12.03  Terms and  Conditions  Relating  to  Consents.  The  following  terms and
conditions apply in respect of a consent given by the Landlord to a Transfer;

      (a) the  consent by the  Landlord is not a waiver of the  requirement  for
consent to subsequent Transfers, and no Transfer shall relieve the Tenant of its
obligations under this Lease, unless specifically so provided in writing;

      (b) no  acceptance  by  the  Landlord  of  Rent  or  other  payments  by a
Transferee  is: (i) a waiver of the  requirement  for the Landlord to consent in
writing to the  Transfer;  (ii) the  acceptance  of the  Transferee as tenant or
subtenant,  or (iii) a release of the Tenant or Indemnifier from its obligations
under this Lease or any Indemnity Agreement;

      (c) the Landlord may apply amounts  collected  from the  Transferee to any
unpaid Rent;

      (d) the  Transferor,  unless the  Transferee is a subtenant of the Tenant,
will retain no rights under this Lease in respect of obligations to be performed
by the Landlord or in respect of the use or  occupation  of the Leased  Premises
after the Transfer and will  execute an  Indemnity  Agreement on the  Landlord's
standard form in respect of  obligations  to be performed  after the Transfer by
the Transferee;

                                       37
<PAGE>

      (e) the  Transferee  shall,  when  required by the  Landlord,  jointly and
severally  with the Tenant,  enter into an agreement  directly with the Landlord
agreeing to be bound by this Lease as if the Transferee had originally  executed
this Lease as the Tenant,  and the Tenant will not be released nor relieved from
its obligations under this Lease including,  without limitation,  the obligation
to pay Rent;

      (f) in the event that this Lease is disaffirmed,  disclaimed or terminated
by any trustee in bankruptcy of a Transferee,  the original Tenant named in this
Lease shall be deemed, upon notice by the Landlord given within thirty (30) days
of such disaffirmation,  disclaimer, or termination to have entered into a lease
with the Landlord,  containing  the same terms and  conditions as in this Lease,
with the  exception  of the Term of such Lease which shall expire on the date on
which this Lease would have ended save for such  disaffirmation,  disclaimer  or
termination; and

      (g) any documents relating to a Transfer or the Landlord's consent will be
prepared  by the  Landlord or its  solicitors  and a  reasonable  administration
charge of at least Two Hundred and Fifty  Dollars  ($250.00) and the greater of:
(i) a  reasonable  document  preparation  fee of at least Four Hundred and Fifty
Dollars  ($450.00);  or (ii)  those  legal  fees on a  solicitor  and  client or
substantial  indemnity  basis  incurred  by the  Landlord  will  be  paid to the
Landlord by the Tenant on demand.

12.04 Subsequent  Transfers.  The Landlord's  consent to a Transfer shall not be
deemed to be consent to any Subsequent Transfer, whether or not so stated.

12.05 Profit Rents upon Transfers. In the event of any Transfer by the Tenant by
virtue  of which  the  Tenant  receives  a rent in the  form of  cash,  goods or
services from the Transferee which is greater than the Rent payable hereunder to
the  Landlord,  the Tenant shall pay any such excess to the Landlord in addition
to all Rent payable under this Lease, and such excess rent shall be deemed to be
further Rent payable hereunder.

12.06  Advertising.  The Tenant shall not advertise  the Leased  Premises or any
part thereof as being available for leasing or this Lease as being available for
transfer  in any  medium  and will not cause or permit  any such  advertisement,
unless the Landlord has  permitted  the Tenant to do so in writing and has given
written  approval of the wording of such  advertisement,  which  permission  and
approval may be arbitrarily withheld.

12.07  Grant of  Security  Interest  by  Transferee.  The Tenant  will cause any
Transferee and any new Indemnifier of this Lease to grant a mortgage, charge and
security interest to the Landlord in form corresponding to the Security Interest
granted in Section 15.25 by delivery of a written security agreement in form and
substance  satisfactory  to the  Landlord  prior  to the  effective  date of the
Transfer.

The Tenant shall pay all costs  associated  with the granting and  perfection of
mortgages,  charges and security  interests  granted pursuant to this Lease upon
any Transfer.

                                       38
<PAGE>

                      ARTICLE 13.00 TRANSFERS BY LANDLORD

13.01 Sale, Conveyance and Assignment.  Nothing in this Lease shall restrict the
right of the Landlord to sell, convey, assign, pledge or otherwise deal with the
Project, subject (except as provided in Section 13.03) only to the rights of the
Tenant under this Lease.

13.02 Effect of Transfer. A sale, conveyance or assignment of the Project by the
Landlord shall operate to release the Landlord from liability from and after the
effective date thereof in respect of all of the covenants,  terms and conditions
of this Lease, express or implied, except as they may relate to the period prior
to the  effective  date,  and the Tenant  shall  thereafter  look  solely to the
Landlord's successor in interest.

13.03 Subordination.  Subject to Section 13.04, this Lease, at the option of any
mortgagee,  trustee or chargee,  is and shall be subject and  subordinate in all
respects to any and all mortgages (including deeds of trust and mortgage) now or
hereafter  registered  against  title to the  Building or Land and all  advances
thereunder,  past,  present  and  future  and  to all  renewals,  modifications,
consolidations,  replacements  and  extensions  thereof.  The  Tenant  agrees to
execute promptly and in any event within ten (10) days after request therefor by
the  Landlord or the  mortgagee  or trustee  under any such  mortgage or deed of
trust and mortgage an instrument of subordination as may be requested.

13.04  Attornment.  The Tenant  agrees,  whenever  requested  by any  mortgagee,
trustee or  chargee  (in this  Section  13.04 and in  Section  13.05  called the
"Mortgagee")  taking  title to the  Project  by reason of  foreclosure  or other
proceedings  for enforcement of any mortgage or deed of trust, or by delivery of
a deed in lieu of such  foreclosure  or  other  proceeding,  to  attorn  to such
Mortgagee as a tenant under all of the terms of this Lease. The Tenant agrees to
execute  promptly  and in any event  within ten (10) days after a request by any
Mortgagee an instrument of attornment as may be required by it.

13.05 Effect of Attornment.  Upon  attornment  pursuant to Section  13.04,  this
Lease  shall  continue  in full force and effect as a direct  lease  between the
Mortgagee and the Tenant,  upon all of the same terms,  conditions and covenants
as are set forth in this Lease except that, after attornment,  the Mortgagee and
its successors in title shall not be:

      (a) liable for any act or omission of the Landlord; or

      (b) subject to any offset or defence  which the Tenant  might have against
the Landlord; or

      (c) bound by any  prepayment  by the  Tenant of more than one (1)  month's
installment of Rent unless the prepayment shall have been approved in writing by
the  Mortgagee  or by any  predecessor  of the  Mortgagee's  former  interest as
mortgagee of the Project.

13.06  Repurchase.  The Tenant  acknowledges and agrees that should the Landlord
sell, convey, assign, pledge or otherwise deal with the Project, or any interest
therein,  or intend to deal with the Project,  or any interest  therein,  in any
manner  described  herein then the Landlord may, at its option,  if the Landlord
has provided the Tenant with Basic Rent free periods,  Rent free periods  and/or
other inducements during the Term and/or any renewal or extension of the Term of

                                       39
<PAGE>

this  Lease,  reimburse  the  Tenant  for the  then  present  value  of any then
unexpired Basic Rent free periods or Rent free periods and/or other  inducements
provided to the Tenant under this Lease,  in an amount  equal to the  discounted
cash value  thereof  determined  by applying the then  current  yield of 10 year
Canadian  Government  Bonds plus four percent (4%)  (hereinafter  referred to in
this Section 13.06 as the "Discounted  Cash Value") to the dollar amount of such
outstanding Basic Rent free periods,  Rent free periods and/or other inducements
and the Tenant  agrees  that any such  periods or  inducements  for which it has
received such Discounted Cash Value from the Landlord will no longer exist or be
payable  or be of any  force or effect  from and  after  the date on which  such
Discounted  Cash Value is received by the Tenant from the  Landlord.  The Tenant
agrees to forthwith execute any agreement prepared by the Landlord,  the purpose
of which  agreement  is to amend  this  Lease by  deleting  such Basic Rent free
periods, Rent free periods and/or other inducements from the Lease for which the
Tenant has received the Discounted Cash Value from the Landlord.

                            ARTICLE 14.00 SURRENDER

14.01    Possession and Restoration.

(1) Upon the  expiration  or other  termination  of the Term,  the Tenant  shall
immediately  quit  and  surrender  possession  of the  Leased  Premises  and all
Leasehold  Improvements,  in substantially  the condition in which the Tenant is
required to maintain the Leased  Premises,  excepting only  reasonable  wear and
tear and damage covered by the Landlord's  insurance under Section 9.01, and the
Tenant shall  deliver to the Landlord the keys,  mechanical  or  otherwise,  and
combinations,  if any, to the locks in the Leased Premises and entries  thereto.
Notwithstanding  the foregoing,  the Landlord shall have the right,  at its sole
option upon  expiration  or other  termination  of the Term, to require that the
Tenant  remove or cause to be  removed at the  Tenant's  cost all or any part of
Leasehold  Improvements in the Leased Premises whether or not installed by or on
behalf of the Tenant or installed by or on behalf of a previous tenant or during
a  previous  term and to  restore  the Leased  Premises  and other  parts of the
Project  affected  by the  installation  or  removal  thereof  to base  building
standards.  In addition,  the Landlord shall have the right,  at its sole option
upon  expiration  or other  termination  of the Term, to require that the Tenant
remove  or  cause  to be  removed  at the  Tenant's  cost all or any part of any
wiring, cables, risers or similar installations appurtenant thereto installed by
the  Tenant  or on the  Tenant's  behalf  in the  risers  of the  Building  (the
"Wiring")  and to restore the risers and other parts of the Project  affected by
the  installation or removal of the Wiring to their condition  existing prior to
the installation of the Wiring (the "Wire  Restoration  Work").  Notwithstanding
the  foregoing,  the  Landlord  may,  at  its  sole  option,  perform  the  Wire
Restoration  Work at the Tenant's  sole cost and expense.  Upon  surrender,  all
right,  title,  and  interest  of the  Tenant  in the  Leased  Premises  and all
Leasehold Improvements located therein and in all Wiring shall cease.

(2)  Ninety  (90) days (or as soon after  such date as is  reasonably  possible)
prior to the expiration of the Term the Landlord may inspect the Leased Premises
to determine  the extent of the Wire  Restoration  Work and the work required to
restore  the Leased  Premises  and other  parts of the  Project  affected by any
installation or removal of Leasehold Improvements to base building standards and
upon receipt of the Landlord's  estimate of the costs thereof (the  "restoration
cost")  the  Tenant  shall  provide  to the  Landlord  by  certified  cheque the
restoration cost.

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<PAGE>

14.02  Tenant's Trade  Fixtures and Personal  Property.  After the expiration or
other  termination of the Term or in the event of the  abandonment of the Leased
Premises by the Tenant, all of the Leasehold Improvements and the Tenant's trade
fixtures, and personal property remaining in the Leased Premises shall be deemed
conclusively to have been abandoned by the Tenant and may be appropriated, sold,
destroyed or otherwise  disposed of by the Landlord without notice or obligation
to compensate the Tenant or to account therefor, and the Tenant shall pay to the
Landlord  upon  written  demand all of the costs  incurred  by the  Landlord  in
connection therewith.

14.03  Overholding.  If the Tenant  remains in the Leased  Premises  or any part
thereof after the expiration or other termination of the Term:

      (a)  without  the  consent of the  Landlord,  no yearly or other  periodic
tenancy  shall be  created  but the  Tenant  shall be  bound  by the  terms  and
provisions  of this Lease except any options  thereby  granted to the Tenant and
except the Basic Rent which shall be twice the greater of: (i) the rate provided
for herein for the final year of the Term;  and (ii) the market rate for similar
premises as determined by the Landlord at the time of such overholding, plus, in
either case,  the sum of $200 daily and subject to such  additional  obligations
and conditions as the Landlord may impose by notice to the Tenant; or

      (b) with the consent of the Landlord and agreement as to the Rent payable,
the tenancy  shall be  month-to-month  at the Rent agreed and  otherwise  on the
terms and  conditions of this Lease but without any option to renew or for a new
lease.

The Landlord may recover  possession  of the Leased  Premises  during any period
with respect to which the Tenant has prepaid the amount payable under Subsection
14.03(a).

The Tenant shall  promptly  indemnify  and hold  harmless the Landlord  from and
against all Claims  against the Landlord as a result of the Tenant  remaining in
possession  of all or any part of the  Leased  Premises  after the expiry of the
Term without the consent of the Landlord  (including,  without  limitation,  any
compensation  to any new tenant or tenants  which the  Landlord may elect to pay
whether to offset the cost of overtime work or otherwise).

                             ARTICLE 15.00 GENERAL

15.01  Estoppel  Certificates.  The  Tenant  shall  whenever  requested  by  the
Landlord, a prospective  purchaser or any mortgagee (including any trustee under
a deed of trust and  mortgage)  promptly,  and in any event within ten (10) days
after  request,  execute and deliver to the  Landlord or to any party or parties
designated  by the  Landlord a  certificate  in writing as to the then status of
this Lease,  including as to whether it is in full force and effect, is modified
or unmodified, confirming the Rent payable hereunder and each element hereof and
the then  state  of the  accounts  between  the  Landlord  and the  Tenant,  the
existence or non-existence of defaults, and any other matters pertaining to this
Lease in respect of which the Landlord shall request a certificate,  and provide
such other  information as may  reasonably be required,  including a copy of the
Tenant's most recent audited financial statements.  The party or parties to whom
such certificates are addressed may rely upon them.

                                       41
<PAGE>

15.02  Entire  Agreement.  There  is  no  promise,   warranty,   representation,
undertaking,  covenant or  understanding  by or binding upon the Landlord except
such as are expressly set forth in this Lease, and this Lease including the Term
Sheet and schedules  hereto  contains the entire  agreement  between the parties
hereto.

15.03 No  Registration  of Lease or Notices.  The Tenant  shall not  register or
apply to register  this Lease or any notice of this Lease or any interest  under
this Lease and waives any statutory  obligation upon the Landlord to execute and
deliver  this Lease in  registrable  form,  The Tenant  shall,  at its own cost,
promptly  on  request  discharge  any  registration  or filing  or  notice  that
contravenes this Section.  Notwithstanding the foregoing, the Landlord may elect
to require that this Lease or notice of this Lease be registered.

15.04 Project Name and Trademarks.  The Tenant shall not refer to the Project or
Building  by any  name  other  than  that  designated  from  time to time by the
Landlord  and the Tenant  shall use the name of the  Building  for the  business
address of the Tenant but for no other  purpose.  Compliance  with this  Section
shall be at the sole cost and expense of the Tenant and the Tenant shall have no
claim  against the  Landlord  for any costs or expenses  incurred by the Tenant,
whether direct or indirect, in complying with this Section.

15.05 Demolition / Substantial  Renovation.  Notwithstanding any other provision
of this Lease,  the Landlord may terminate this Lease at any time upon giving to
the Tenant not less than twelve (12) months notice of such  termination if it is
the Landlord's intention to demolish, redevelop or substantially renovate all or
part of the Building.

15.06  Relocation.  The Landlord shall have the right, at any time and from time
to time before and during the Term and any renewal or  extension  of the Term of
this Lease,  to change the  location of the Leased  Premises  from the  location
described  in this  Lease to  another  location  of  similar  size and  finishes
anywhere else in the Project.  Provided that the Landlord  shall give the Tenant
reasonable notice of such relocation and the Landlord shall reimburse the Tenant
for all reasonable costs directly related to such relocation,  but not including
any indirect costs such as lost profits during the relocation  period or damages
for inconvenience.

15.07 "For  Lease"  Signs.  The  Landlord  shall have the right  during the last
twelve  (12)  months of the Term to place upon the  Leased  Premises a notice of
reasonable  dimensions  stating that the Leased Premises are "for lease" and the
Tenant shall not obscure or remove such notice or permit the same to be obscured
or removed.

15.08  Unavoidable  Delays.  If the Landlord or the Tenant (the "delayed party")
shall be delayed  hindered or prevented in or from the performance of any of its
covenants  under this Lease by any cause not within the  control of the  delayed
party  as  determined  by the  Landlord  acting  reasonably  (excluding  lack of
finances of the delayed party), the performance of the covenant shall be excused
for the period during which performance is rendered  impossible and the time for
performance thereof shall be extended accordingly, but this shall not excuse the
Tenant  from the prompt  payment of Rent or from the  performance  of any of its
other obligations under this Lease not related to such cause.

                                       42
<PAGE>

15.09 Limitation of Recourse. The Tenant acknowledges that,  notwithstanding any
other provision  contained in this Lease,  the obligations of and rights against
the Landlord under this Lease shall be performed, satisfied and paid only out of
and enforced  against,  and recourse  hereunder shall be had only after judgment
and only  against,  the right,  title and interest of the Landlord  from time to
time in, and the Landlord's revenue derived from, the Project.  No obligation of
the Landlord  hereunder or in respect  hereof is personally  binding  upon,  nor
shall any resort or  recourse  be had,  judgment  issued or  execution  or other
process  levied  against,  the  Landlord  (except  to the extent  necessary  for
enforcement  under the first  sentence of this  Section  15.09 and only for that
purpose),  or against any other  assets or revenues  of the  Landlord.  The only
remedy against the Landlord  shall be an action for damages,  except that if the
Tenant is of the opinion that any consent  requested  pursuant to Article  12.00
hereof has been  wrongfully  withheld,  its  remedies  are as set out in Section
12.02.

The parties  acknowledge  and agree that the obligations of Morguard Real Estate
Investment  Trust  hereunder and under all documents  delivered  pursuant hereto
(and all  documents to which this document may be pursuant) or which give effect
to, or amend or supplement,  the terms of this Lease are not personally  binding
upon any  trustee  hereof,  any  registered  or  beneficial  holder  of units (a
"Unitholder")  or any  annuitant  under a plan of which a  Unitholder  acts as a
trustee or carrier, or any officers, employees or agents of Morguard Real Estate
Investment  Trust  and  resort  shall  not be had  to,  nor  shall  recourse  or
satisfaction be sought from, any of the foregoing or the private property of any
of the foregoing,  but the Project only shall be bound by such  obligations  and
recourse or satisfaction may only be sought from the revenue of the Project.

15.10  Notice.  Notice,  demands,  requests  or other  instruments  required  or
contemplated  by any provision of this Lease shall be given in writing and shall
be: (i)  delivered in person;  or (ii) sent by facsimile  with  confirmation  of
transmission;  or (iii) sent by registered mail, postage prepaid, and addressed:
(a) if to the Landlord at the  Landlord's  head office as specified in Item 1(c)
of the Term  Sheet,  with a copy to the  Landlord's  manager  c/o the address as
specified  in Item  1(a) of the Term  Sheet;  and (b) if to the  Tenant,  at the
Leased  Premises,  or, at the  Landlord's  option,  to the Tenant's  head office
address as specified in Item 2 of the Term Sheet  (whether or not the Tenant has
departed from, vacated or abandoned the same).

Any notice, demand, request or consent shall be considered to have been given or
made on the day that it is delivered by hand, or, if sent by facsimile, it shall
be  considered  to have been given if received on or before 4:30 p.m. on the day
of transmission (if after 4:30 p.m. it shall be deemed to have been given on the
next business day following),  or, if mailed, shall be deemed to have been given
three (3) days  following  the date upon which it was mailed.  Either  party may
from time to time by notice in writing to the other designate another address or
addresses  in Canada as the  address  to which  notices  are to be sent.  If the
postal service is interrupted or substantially  delayed, any notice,  demand, or
request or other  instrument  shall only be  delivered  by one of the  alternate
methods  stated above.  A notice given by or to one Tenant is a notice by all or
to all of the Persons who are the Tenant  under this Lease.  Any notice given to
the Indemnifier or the Tenant shall be deemed to have been given  simultaneously
to the other of them and to all Persons bound by their obligations hereunder.

                                       43
<PAGE>

Notwithstanding the provision of any statute or law relating thereto, service by
means of  electronic  mail of any  notice(s)  required to be given in writing by
either  party  hereto  pursuant  to the  Lease  shall  not  constitute  good and
effective service.

Any notice which the Landlord intends to give to the Tenant and to other tenants
may be addressed by the Landlord to the group of tenants to which that notice is
intended  to be  given  described  either  by  reference  to  location  or other
identifying aspects of the group of tenants to which the Tenant belongs.

15.11  Delegation  of Authority.  The managing  agent of the Landlord may act on
behalf of the Landlord in any manner provided for herein.

15.12 Relationship of Parties.  Nothing contained in this Lease shall create any
relationship  between the parties  hereto other than that of landlord and tenant
and, if applicable, indemnifier.

15.13  Governing  Law.  This Lease shall be construed and enforced in accordance
with,  and the  rights of the  parties  shall be  governed  by,  the laws of the
province  in which the  Project  is  situate  and the laws of Canada  applicable
therein.

15.14  Amendment or  Modification.  No amendment,  modification or supplement to
this Lease shall be valid or binding  unless set out in writing and  executed by
the Landlord  and the Tenant with the same degree of formality as the  execution
of this Lease.

15.15 Legal and  Administration  Costs.  The Tenant shall indemnify the Landlord
against all legal fees on a solicitor and client or substantial  indemnity basis
and  disbursements  incurred  by the  Landlord  or by its  manager  or agents in
connection  with the  negotiation,  preparation  and  execution  of any renewal,
amendment, assignment, cancellation, approval or consent in connection with this
Lease,  including the Landlord's  reasonable  administration  charges.  All such
costs and charges  shall be paid by the Tenant to the  Landlord  forthwith  upon
demand.

15.16  Construction.  All of the provisions of this Lease are to be construed as
covenants  and  agreements.  If any  provision  of  this  Lease  is  illegal  or
unenforceable,  it shall be considered separate and severable from the remaining
provisions  of this Lease,  which shall remain in force and be binding as though
the  provision  had never been  included.  Any provision in this Lease which has
been struck out shall be deemed not to have ever been included  herein and shall
not be  considered in construing  or  interpreting  any other  provision of this
Lease.

15.17 Captions and Headings.  The captions and headings  contained in this Lease
are for convenience of reference only and are not intended to limit,  enlarge or
otherwise affect the interpretation of the Articles, Sections or parts hereof to
which they apply.

15.18  Interpretation.   In  this  Lease,   "herein",   "hereof",   "hereunder",
"hereafter"  and  similar  expressions  refer  to  this  Lease  and  not  to any
particular  Article,  Section or other portion thereof unless there is something
in the subject matter or context inconsistent  therewith.  Wherever necessary or
appropriate  in this Lease,  the plural shall be  interpreted  as singular,  the
masculine gender as feminine or neuter and vice versa; and when there are two or
more parties bound by the Tenant's covenants herein contained, their obligations
shall be joint and several.  If the Tenant is a partnership,  each Person who is
presently a member of such  partnership  and each Person who becomes a member of
any  successor  partnership  shall be and  continue  to be  liable  jointly  and
severally for the performance of the  obligations of this Lease,  whether or not
such Person ceases to be a member of such  partnership or successor  partnership
and after the partnership ceases to exist.

                                       44
<PAGE>

15.19 Time of the Essence.  Time shall be of the essence hereof and no extension
or variation of this Lease shall operate as a waiver of this provision.

15.20 Successors and Assigns.  Subject to specific provisions  contained in this
Lease to the  contrary,  this Lease shall enure to the benefit of and be binding
upon the  successors  and assigns of the Landlord and the heirs,  executors  and
administrators and the permitted successors and assigns of the Tenant.

15.21  Counterparts.  This  Lease  may  be  executed  in  counterparts  and  the
counterparts together shall constitute an original.

15.22 Further  Schedules.  Any  additional  covenants  agreements and conditions
forming  part of this  Lease will be  attached  as  Schedule  "E" and the Tenant
agrees with the Landlord to comply with the  provisions  of Schedule  "E". If an
Indemnifier is a party hereto the form of Indemnity  Agreement to be executed by
the  Indemnifier  and the Landlord as a separate  agreement  will be attached as
Schedule "F".

15.23 Independent Legal Advice.  The Tenant and the Indemnifier each acknowledge
that the  Landlord  hereby  advises  each of the Tenant and the  Indemnifier  to
obtain advice from independent  legal counsel prior to signing this Lease and/or
the Indemnity Agreement. The Tenant and the Indemnifier further acknowledge that
any information provided by the Landlord is not to be construed as legal, tax or
any other expert advice and the Tenant and the  Indemnifier are cautioned not to
rely on any such information without seeking legal, tax or other expert advice.

The Landlord and the Tenant  understand,  acknowledge  and agree that this Lease
has been freely  negotiated  by both parties and that, in any dispute or contest
over the meaning,  interpretation,  validity or  enforceability of this Lease or
any of its terms or  conditions,  there shall be no  inference,  presumption  or
conclusion drawn whatsoever  against either party by virtue of that party having
drafted this Lease or any portion thereof.

15.24 No  Offer.  The  Landlord  will not be deemed to have made an offer to the
Tenant by furnishing an unexecuted copy of this Lease with particulars inserted.
Notwithstanding  that a Security  Deposit or payment of advance Rent is received
by the Landlord  when this Lease is received by the Landlord for  execution,  no
contractual  or other right will exist  between the Landlord and the Tenant with
respect  to  the  Leased  Premises  until  the  Landlord,  the  Tenant  and  the
Indemnifier,  if any, have  executed and  delivered  this Lease and any required
Indemnity Agreement.

15.25    Landlord's Security Interest.

(1) As security  for the  Tenant's  performance  of its  obligations  under this
Lease,  including  but not  limited to the  payment of Rent and GST,  the Tenant
grants to the Landlord by way of security interest,  mortgage,  pledge,  charge,

                                       45
<PAGE>

assignment and hypothec a continuing security interest (the "Security Interest")
in the Tenant's present and future  undertaking and all of its present and after
acquired personal  property and assets including  without  limitation the assets
described in Schedule "G" attached  hereto and forming part hereof and all goods
(including inventory),  trade fixtures and other personal property of the Tenant
located from time to time on the Leased Premises and any Leasehold  Improvements
which the Tenant effects on or in respect of the Leased  Premises  (collectively
the "Collateral").  The Tenant may however,  prior to the occurrence of an Event
of Default,  sell or dispose of its inventory to its customers,  in the ordinary
course of business,  in accordance  with the terms and conditions of this Lease,
without the consent of the Landlord. The Tenant will promptly execute additional
documents and will provide additional  information required by the Landlord from
time to time in connection with the Security Interest. The Tenant authorizes the
Landlord to file a financing  statement and any other form of document  required
in  connection  with the Security  Interest to perfect,  protect or preserve its
Security Interest. The Landlord's Security Interest is in addition to and not in
lieu of its right of distress.

(2) The Landlord may enforce its Security  Interest  upon the  occurrence  of an
Event of Default in the manner  outlined in  Schedule  "G"  attached  hereto and
forming part hereof or in any other manner available at law or in equity.

(3) The grant of the Security Interest shall not effect or result in a merger of
any rights or interests of any party hereto.

(4) To the  extent  permitted  by law,  the  Tenant  hereby  waives its right to
receive  a copy  of any  financing  statement,  financing  change  statement  or
verification statement relating to the Security Interest.

(5) The  Landlord  and the  Tenant  acknowledge  that  they  have not  agreed to
postpone  the time for  attachment  of the  Security  Interest  with  respect to
existing  Collateral,  and that the  Security  Interest  shall  attach  to after
acquired Collateral as soon as the debtor has rights in such Collateral.

15.26 Survival of Covenants and Indemnities. All obligations of the Tenant which
arise during the Term  pursuant to this Lease and which have not been  satisfied
at the end of the Term and all indemnities of the Tenant contained in this Lease
shall survive the expiration or other termination of this Lease.

15.27  Exculpatory  Provisions.  In all  provisions  of this Lease  containing a
release,  indemnity  or other  exculpatory  language in favour of the  Landlord,
reference to the Landlord  includes  reference also to the Landlord's agents and
nominee  (if  any) and any  Person  for  whom it is in law  responsible  and the
directors,  officers and employees of the  Landlord,  its agents and nominee (if
any) and any  Person  for whom it is in law  responsible  and its  agents  while
acting in the ordinary course of their  employment  (collectively  the "Released
Persons"), it being understood and agreed that, for the purposes of this Section
15.27,  the Landlord is deemed to be acting as the agent or trustee on behalf of
and for the benefit of the Released  Persons solely to the extent  necessary for
the Released Persons to take the benefit of this Section 15.27.

                                       46
<PAGE>

15.28 Brokerage Commissions.  The Tenant covenants that no act of the Tenant has
given  rise nor shall  give rise to any  Claims  against  the  Landlord  for any
brokerage commission,  finder's fee or similar fee in respect of this Lease. The
Tenant  hereby  indemnifies  and agrees to hold the Landlord  harmless  from any
Claims for such  commission  or fees with respect to this Lease except any which
were directly contracted for by the Landlord.

15.29  Covenants to be Performed at  Landlord's  Option.  Where any provision in
this Lease gives the  Landlord  the option of having the  Landlord or the Tenant
perform the covenants set out in such  provision,  the Tenant shall perform such
covenants unless the Tenant is otherwise  directed by way of written notice from
the Landlord.

15.30  Radiation.  Only if the  Landlord  believes on  reasonable  grounds  that
radiation  is or has been used or created by the Tenant or any Person  permitted
by the Tenant to be in the Leased Premises shall this Section 15.30 apply to the
Tenant.

The  Tenant  agrees,  if so  requested  by the  Landlord,  to conduct at its own
expense a survey by an accredited firm of consultants acceptable to the Landlord
to determine the level of radiation in the Leased  Premises,  and if such levels
are in  excess  of  those  allowable  under  Environmental  Laws  and set by the
applicable regulatory authorities governing radiation, the Tenant agrees, at its
own cost and expense and on terms and  conditions  approved by the Landlord,  to
reduce the level of radiation to a level allowable under  Environmental Laws and
set by such applicable regulatory authorities.

                                       47
<PAGE>

IN WITNESS WHEREOF,  the parties have executed this  ____________ as of the date
first above written.

                                        LANDLORD:

                                        MORGUARD REAL ESTATE INVESTMENTS TRUST
                                        by its agent
                                        MORGUARD INVESTMENTS LIMITED

                                        By:_____________________________________
                                           Name:    John Borrelli
                                           Title:   Authorized Signatory

                                        By:_____________________________________
                                           Name:    Tullio Capulli
                                           Title:   Authorized Signatory

                                        I/We   have   authority   to  bind   the
                                        Corporation  which has authority to bind
                                        the Trust

WITNESS TO SIGNATURE OF TENANT:         TENANT:

signature:  /s/ Roy Solomon             RENT SHIELD CANADA LIMITED,
            --------------------------

print name: Roy Solomon                 By:  /s/ Sandro Sordi
            --------------------------    --------------------------------------
                                          Name:  Sandro Sordi
                                          Title: Authorized Signatory
address: 1881 Steeles Ave. W.
         -----------------------------  By:_____________________________________
                                           Name:
         Toronto, M3H 544                  Title:
         -----------------------------
                                        I/We   have   authority   to  bind   the
                                        Corporation
occupation: Associate Broker
            --------------------------

                                       48
<PAGE>

                                  SCHEDULE "A"

                          PLAN SHOWING LEASED PREMISES

                       [GRAPHIC OMITTED][GRAPHIC OMITTED]

                                       1

<PAGE>

                                 SCHEDULE "A-1"

                            LEGAL DESCRIPTION OF LAND

ALL AND  SINGULAR  that certain  parcel or tract of land and  premises  situate,
lying and being in the City of North York, in the  Municipality  of Metropolitan
Toronto and being composed of part of Blocks G, H, and K,  Registered  Plan 7612
York,  in the  said  City of  Toronto  designated  as Part 1 on  Reference  Plan
66R-16126.

The  boundary of the east and south side of  Yorkland  Boulevard  was  confirmed
under the  Boundaries  Act by Plan BA-1802,  registered as Instrument No. 788457
North York.

The said land is  registered  in the Land  Registry  Office for the Land  Titles
Division of Metropolitan Toronto as P.I.N. 10085-0112.

Municipally known as 200 Yorkland Boulevard, North York, Ontario.

                                       1

<PAGE>

                                  SCHEDULE "B"

                                   DEFINITIONS

"Article",  "Item",  "Section",  "Schedule" and "Subsection"  mean the specified
article,  item,  section,  schedule or  subsection,  as the case may be, of this
Lease.

"Basic Rent" means the amount set out in item 8 of the Term Sheet payable by the
Tenant to the Landlord in respect of each year of the Term.

"Bio-Medical Waste" shall mean and include the following:

         (a)      (i) surgical  waste  including  all materials  discarded  from
                  surgical procedures,  including but not limited to, disposable
                  gowns,  soiled  dressings,   sponges,   casts,  lavage  tubes,
                  drainage sets, underpads and surgical gloves; and

                  (ii)  pathological  waste  including  all  human  tissues  and
                  anatomical  parts  which  emanate  from  surgery,  obstetrical
                  procedures, autopsy and laboratory, and

                  (iii)  biological  waste  including  blood and blood products,
                  excretions,  exudates, secretions,  suctionings and other body
                  fluids including solid/liquid waste from renal dialysis; and

                  (iv) isolation  waste  including all waste  emanating from the
                  care or  treatment  of a patient on any type of  isolation  or
                  precaution except reverse (protective) isolation; and

                  (v)  cultures and stocks of  etiologic  agents and  associated
                  biologicals including, without limitation,  specimen cultures,
                  cultures   and  stocks  of  etiologic   agents,   wastes  from
                  production of biologicals  and serums,  and discarded live and
                  attenuated vaccines; and

                  (vi)   laboratory   waste  which  has  come  in  contact  with
                  pathogenic  organisms,  including but not limited to,  culture
                  dishes, devices used to transfer,  inoculate and mix cultures,
                  paper and cloth which has come in contact  with  specimens  or
                  cultures; and

                  (vii) animal carcasses exposed to pathogens in research, their
                  bedding and other waste from such animals; and

                  (viii) sharps,  including any discarded article that may cause
                  punctures or cuts,  including but not limited to, needles,  IV
                  tubing with needles attached,  scalpel blades,  glassware, and
                  syringes  that have been removed from their  original  sterile
                  containers; and

                  (ix) any other  wastes  identified  as  infectious  or similar
                  wastes  in  any  other  applicable   federal,   provincial  or
                  municipal laws, regulations and guidelines; and

                                       1
<PAGE>

         (b)  "Chemotherapy  Waste" (also known as  antineoplastic  or cytotoxic
waste) means and includes discarded items,  including but not limited to, masks,
gloves,  gowns,  empty IV tubing bags,  vials,  syringes and other  contaminated
materials   which  have  been   contaminated   by   chemotherapeutic   drugs  or
antineoplastic agents; and

         (c) any waste defined as bio-medical  waste under any applicable law or
regulation.

"Building" means the buildings,  structures and  improvements  from time to time
during the Term  erected in, upon or under the Land  municipally  identified  in
Item 3 of  the  Term  Sheet  and  all  alterations  and  additions  thereto  and
replacements thereof.

"Capital Tax" means the applicable  amount of any tax or taxes including but not
limited to Large Corporations Tax payable based upon or computed by reference to
the paid-up  capital or place of business of the Landlord as determined  for the
purposes  of such tax or  taxes;  provided  that for the  purposes  hereof,  the
"applicable  amount" of such tax or taxes  shall mean the  amount  thereof  that
would be payable if the Project were the only  establishment  of the Landlord in
the  jurisdiction of the taxing  authority or if any other  establishment of the
Landlord therein were located outside that jurisdiction.

"Claims" means claims, losses,  actions, suits,  proceedings,  causes of action,
demands,  damages (direct,  indirect,  consequential  or otherwise),  judgments,
executions, liabilities, responsibilities, costs, charges, payments and expenses
including, without limitation, any professional,  consultant and legal fees on a
solicitor  and  client  or  substantial   indemnity  basis  and  any  associated
disbursements.

"Collateral" has the meaning ascribed in Section 15.25.

"Commencement Date" means the first day of the Term as specified in Item 7(a) of
the Term Sheet.

"Common  Elements"  means  the  areas,  facilities,   utilities,   improvements,
equipment and installations (collectively, "elements") in the Project that, from
time  to  time,  are  not  intended  to be  leased  to  tenants  of the  Project
(including,  without  limitation,  elements  within  rentable  premises that are
intended  for the  benefit of  tenants of the  Project  and their  invitees  and
employees)  or are  designated  from  time  to time as  Common  Elements  by the
Landlord and includes access roads, driveways and parking areas and facilities.

"Consultants"  means any reference in this Lease to the  Landlord's  accountant,
auditor, architect, surveyor or other consultant shall be deemed to be such duly
qualified  consultant  appointed by the Landlord in its absolute  discretion for
the  purposes  of this Lease or of any  provision  hereof;  and they will act in
accordance   with  this  Lease  and  the   principles  and  standards  of  their
professions.  In determining  any cost  allocation the Landlord may rely on, and
the parties shall be bound by, the decision or  determination  of the Landlord's
Consultants.

"CPI" means the Consumer Price Index (All Items for Regional  Cities,  base year
1992  =  100)  published  by  Statistics  Canada  (or by a  successor  or  other
governmental  agency,  including a  provincial  agency),  for the city in Canada
nearest the Project for which such a Consumer  Price Index is  published,  or if
the  Consumer  Price  Index  is no  longer  published,  an  index  published  in

                                       2
<PAGE>

substitution for the Consumer Price Index or any replacement index designated by
the  Landlord.  If a  substitution  is  required,  the  Landlord  shall make the
necessary  conversions.  If the base year for the  Consumer  Price Index (or the
substituted  or  replacement  index) is changed by Statistics  Canada (or by its
successors or other  governmental  agency) the Landlord shall make the necessary
conversion.

"Environmental Laws" shall include any domestic and foreign federal, provincial,
municipal,  or  local  laws,  statutes,  regulations,   ordinances,  guidelines,
policies,  judge  made  laws or  common  laws  and  any  orders  of a  court  or
governmental authority,  relating in any way to the natural or human environment
(including and, surface water,  groundwater,  and real,  personal,  moveable and
immoveable  property),  public  or  occupational  health  and  safety,  and  the
manufacture,  importation,  handling,  use,  reuse,  recycling,  transportation,
storage,  disposal,  elimination  and  treatment  of a  substance,  hazardous or
otherwise.

"Event of Default" has the meaning ascribed in Section 11.04.

"Expropriated",  "Expropriating" and "Expropriation"  have the meanings ascribed
in Section 10.06.

"Fiscal Year" means a period,  from time to time  determined by the Landlord all
or part of which  falls  within  the Term,  at the end of which  the  Landlord's
accounts in respect of the  Project are  balanced  for  auditing or  bookkeeping
purposes.  Such  period  shall be twelve (12)  months  except when the  Landlord
designates a new date upon which the fiscal year shall end.

"GST" means goods and services tax being that tax payable pursuant to Parts VIII
and IX of the Excise Tax Act,  as amended and  re-enacted  from time to time and
other like taxes  levied from time to time and  includes  any blended  sales tax
which combines GST and provincial sales tax.

"Indemnifier"  means the  Person(s)  who has  executed  or agreed to execute the
agreement (the "Indemnity  Agreement") in form and content  attached as Schedule
"F" hereto, or any other agreement in favour of the Landlord.

"Indemnity Agreement" means the agreement attached as Schedule "F".

"Land"  means those lands  legally  described  in Schedule  "A-1" as same may be
expanded or contracted from time to time.

"Lease"  means this lease,  the Term Sheet,  and all Schedules  attached  hereto
which are referred to in this lease and every properly executed instrument which
by its terms amends, modifies or supplements this lease.

"Lease Year" means a period of twelve (12) consecutive full calendar months; the
first Lease Year shall commence on the Commencement  Date if that date occurs on
the first day of a calendar month;  but if it does not so occur, the first Lease
Year shall  commence on the first day of the calendar  month next  following the
Commencement  Date  and  each  succeeding  Lease  Year  shall  commence  on  the
anniversary date of the first day of the first Lease Year.

                                       3
<PAGE>

"Leased  Premises"  means those premises in the Building which are described and
identified in Item 4 of the Term Sheet and which are marked in a  distinguishing
manner on the plan attached as Schedule "A".

"Leasehold Improvements" means:

(a) all  improvements  fixtures,  installations,  alterations and additions from
time to time  made,  erected  or  installed  to or in the  Leased  Premises,  in
addition to,  beyond or replacing  the base  building  standards,  including all
partitions  however affixed  (including  moveable and  demountable  partitions),
millwork and affixed wall units,  internal  stairways,  doors,  hardware,  light
fixtures,  carpeting and other applied floor finishes, and heating,  ventilating
and air conditioning  equipment and other building  services not forming part of
the Landlord's base building equipment and services; and

(b) alterations,  improvements and equipment made or installed for the exclusive
benefit of the Tenant elsewhere in the Project;

in either  case  whether  or not  installed  by or on behalf of the  Tenant  and
whether or not installed  during the Term  including,  without  limitation,  all
fixtures (except trade fixtures) in the Leased Premises.

"Mortgagee" has the meaning ascribed in Section 13.04.

"Operating  Costs"  means in respect of any Fiscal  Year the total of all costs,
expenses  and  amounts,  incurred  or  accrued in that  Fiscal  Year for or with
respect  to  ownership,  management,  operation,  maintenance,  repair,  upkeep,
insurance,  supervision,  decoration,  cleaning and upgrading of the Project and
the  determination and allocation of such costs,  expenses and amounts,  whether
incurred  or accrued by or on behalf of the  Landlord  or by or on behalf of any
manager or agent of the  Landlord  including,  without  limitation  and  without
duplication:

A. Inclusions - if provided by the Landlord  (subject to certain  exclusions and
deductions as hereinafter set out):

         (a) the  cost  of  providing  and  maintaining  security,  landscaping,
gardening and snow and refuse removal;

         (b) the cost of heating,  air conditioning and ventilating the Building
and  investigating  and  remedying  air quality and  moisture  issues and issues
related thereto, if any;

         (c) the cost of providing hot and cold or tempered  water,  electricity
(including  lighting)  and all other  utilities  to all parts of the Project not
otherwise paid by tenants;

         (d)  tile  cost of  providing  janitor,  window  cleaning  and  general
cleaning services  including  supplies to all parts of the Project including all
premises leased to tenants of the Project;

         (e) the cost of replacement  of building  standard  fluorescent  tubes,
light  bulbs and  ballasts  in the Leased  Premises  and the costs of  cleaning,
maintaining  and  servicing  of the  electrical  light  fixtures  in tile Leased
Premises if not separately invoiced pursuant to Section 7.02;

                                       4
<PAGE>

         (f) the cost of all insurance  taken out and maintained by the Landlord
under Article 9.00 and the cost of any deductible amount paid by the Landlord in
connection with a claim under its insurance;

         (g) the rental or lease cost of all rented or leased equipment acquired
for the operation or maintenance of the Project;

         (h) accounting costs incurred in connection with the Project  including
computations  required for the  imposition  of charges to tenants and audit fees
incurred for the  determination  of any costs hereunder and the reasonable costs
of collecting and enforcing payment of such charges;

         (i) the cost of all equipment  acquired for operation or maintenance of
the Project if  expensed  fully in the Fiscal  Year in which such  equipment  is
acquired;

         (j) if  expensed  fully in the  Fiscal  Year in which  the  expense  is
incurred, the cost of any improvement, replacement, repair or alteration whether
with respect to buildings,  improvements,  equipment,  fixtures or otherwise and
whether  on-site  or  off-site  which,  in tile  opinion  of tile  Landlord,  is
necessary to reduce or limit increases in Operating Costs or is required by tile
Landlord's insurance carriers or by any changes in the laves, rules, regulations
or orders of any  governmental  authority having  jurisdiction,  including those
necessary  to comply  with  energy  conservation,  pollution  and  environmental
control standards and the costs of any procedures required with respect thereto;

         (k)  the  cost  of  investigating,   testing,   monitoring,   removing,
enclosing,  encapsulating  or abating any  Pollutants  which are in or about the
Project or any part  thereof  or which have  entered  the  environment  from the
Project, if the Landlord is required to do so or if, in tile Landlord's opinion,
it is harmful or  hazardous  to any Person or to the Project or any part thereof
or to the environment;

         (1) the  cost of  repairs  and  replacements  to or in  respect  of the
Project  including  those  resulting from normal wear and tear and otherwise and
including  those  necessary with respect to the window  coverings,  decorations,
elevators and escalators (if any), roof or any parking area or facility;

         (m) the cost of repairs,  replacements  and  improvements to systems in
the  Project  including,  without  limitation,  the  heating,  ventilating,  air
conditioning and energy-saving and security systems and devices;

         (n) at the  Landlord's  election  (such election to be evidenced by the
method  of   calculating   Operating   Costs  for  each  Fiscal  Year),   either
amortization,  in an amount determined by the Landlord's accountant, of the cost
(whether  incurred  before or during the Term and whether or not incurred by the
party  constituting  the  Landlord  at any time or its  predecessor  in title or
interest) of any repair,  replacement,  decoration or improvement of the Project
not expensed  within tile Fiscal Year in which the  expenditure was incurred and
of all equipment  required for the operation and  maintenance of the Project not

                                       5
<PAGE>

included  within  Operating  Costs for the Fiscal Year in which the  expenditure
occurred in accordance with Subsections (i) and (j) above, or depreciation in an
amount  determined  by the  Landlord's  accountant  based on the  cost  (whether
incurred  before or during  the Term and  whether or not  incurred  by the party
constituting  tile Landlord at any time or its predecessor in title or interest)
of any of those items which the Landlord in its absolute  discretion has elected
to treat as capital in nature  together  with,  in each case, an amount equal to
interest at the Prime Rate plus one and one-half percent (1.5%) per annum on the
undepreciated or unamortized amount thereof;

         (o) the amount of all  salaries,  wages and fringe  benefits paid to or
for the benefit of employees and others engaged either full-time or part-time in
the operation or maintenance of the Project;

         (p) amounts paid for service contracts with independent contractors;

         (q) tile cost of energy audits, conservation studies and other measures
taken to conserve energy or reduce costs or liability;

         (r) the cost of renting,  operating and  maintaining  Project signs and
providing directional signage;

         (s) all other expenses of every nature  incurred in connection with the
maintenance and operation of the Project;

         (t) the cost of direct supervision attributable to any of the above;

         (u) the fair  rental  value of space in the  Building  occupied  by the
Landlord, its manager or personnel in connection with the Services; and

         (v) any Capital  Tax imposed  upon the  Landlord  provided  that if the
Capital  Tax  payable by the  Landlord  in this  connection  is for a period not
coinciding  with the Fiscal  Year,  the amount of the  Capital  Tax  included in
Operating Costs in each Fiscal Year shall be that amount payable by the Landlord
accruing during the Fiscal Year;

plus a management fee equal to that amount paid to any managing agent engaged by
the Landlord in respect of  management of the Project or any part thereof or the
Landlord's  reasonable  charges in lieu thereof if the  Landlord  elects to self
manage the Project or any part  thereof,  which fee shall be in keeping with the
industry standard.

B. Exclusions - Operating Costs shall exclude,  without  duplication and without
limiting the  generality of the  foregoing,  and except to the extent  expressly
included above:

         (a) debt service;

         (b) costs  determined  by the  Landlord  from time to time to be fairly
allocable  to  the  correction  of  initial   construction   faults  or  initial
maladjustments in operating equipment but only to the extent that such costs are
recovered from the contractor or others responsible;

                                       6
<PAGE>

         (c) any ground  rent  payable by the  Landlord in respect of a lease of
the Land or part thereof; and

         (d) tenant  improvement  allowances,  leasing  commissions  and leasing
costs.

C. Deductions - There shall be deducted from Operating Costs:

(a) the proceeds of insurance  recovered by the Landlord  applicable  to damage,
the cost of repair of which was included in the  calculation of Operating  Costs
paid by the Tenant; and

(b)  amounts  recovered  as a result of direct  charges  to the Tenant and other
tenants to the extent that the cost thereof was included in the  calculation  of
Operating Costs.

"Parking   Facilities"  means  that  part  of  the  Project  containing  parking
facilities with vehicular access thereto including, without limitation,  parking
spaces, ramps,  circulation space, vehicular entrances and exits, the structural
elements thereof and services,  facilities and systems contained in or servicing
such parking facilities.

"Person"  means an  individual,  partnership,  firm,  corporate  entity,  trust,
government or any department or agency thereof or any combination of them.

"Pollutants"  means  any  substance  which is  regulated  by or  which  would be
considered a contaminant, pollutant, waste or deleterious or hazardous substance
under Environmental Laws, or which is or may be hazardous to persons or property
or detrimentally affect property value and includes, without limiting in any way
the generality of the foregoing:

         (a) radioactive materials;

         (b) explosives;

         (c) any substance  that, if added to any air, land and/or water,  would
degrade or alter or form part of a process of  degradation  or alteration of the
quality of that air, land and/or water,  to the extent that it is detrimental to
its use by human beings or by any animal or plant;

         (d) any solid,  liquid, gas,  microorganism,  mould, sound,  vibration,
ray, heat,  radiation,  odour or  combinations  of any of them that is likely to
alter the quality of the environment  (including air, land and water) in any way
or the presence of which in the  environment  is  prohibited by regulation or is
likely to affect the life, health, safety, welfare or comfort of human beings or
animals  or to  cause  damage  to or  otherwise  impair  the  quality  of  soil,
vegetation, wildlife or property;

         (e) toxic substances;

         (f)  substances  declared  to be  hazardous  or toxic  under any law or
regulation  now or  hereafter  enacted or  promulgated  by any  governmental  or
municipal  authority  having  jurisdiction  over the Landlord,  the Tenant,  the
Leased Premises or the Project of which the Leased Premises form a part;

                                       7
<PAGE>

         (g) any substance the use or  transportation of which or the release of
which into the  environment  is  prohibited,  regulated,  controlled or licensed
under Environmental Laws;

         (h) anything contaminated by any Pollutants; and

         (i) Bio-Medical Waste.

"Prime Rate" means the rate of interest per annum  established from time to time
by The Bank of Nova Scotia (or such other bank being one of the five (5) largest
Canadian  chartered  banks measured by assets as the Landlord may designate from
time to time) at its head office in Toronto,  Ontario as the  reference  rate of
interest to determine  interest rates it will charge on Canadian dollar loans to
its Canadian customers and which it refers to as its "prime rate".

"Protect"  means the Land and Building and  includes,  without  limitation,  all
Common Elements.

"Property  Tax Year"  means the twelve  (l2) month  period set by the  municipal
taxing  authorities  as the period for and over which  Property Taxes and, where
applicable,  business  taxes are  assessed,  charged and payable by the owner or
occupant of the Project or Leased Premises  respectively,  whether on a calendar
or fiscal year or any other basis.

"Property  Taxes"  means  all  taxes,  rates,  levies,  duties  and  assessments
whatsoever whether  municipal,  school,  provincial,  parliamentary or otherwise
levied, charged, imposed or assessed against the Project or upon the Landlord in
respect thereof or from time to time levied, charged, imposed or assessed in the
future in lieu thereof or in addition thereto,  including,  without  limitation,
those  levied,  charged,  imposed or assessed  for  education,  school and local
improvements  and all business  taxes,  if any, from time to time payable by the
Landlord or levied  against  the  Landlord  on account of its  ownership  of, or
interest  in, or the  operation  of the  Project;  and all  costs  and  expenses
incurred by the Landlord in good faith in contesting, resisting or appealing any
such taxes, rates, duties, levies or assessments including,  without limitation,
legal fees on a solicitor and client or  substantial  indemnity  basis and other
professional fees and interest and penalties on deferred payments, but excluding
income or profits taxes upon the income of the  Landlord.  If any portion of the
Project is assessed or taxed other than at the prevailing  commercial assessment
rates and mill rates due to the  occupancy  of any  tenants or the nature of any
tenant's  operation,  then the amount of such taxes,  rates,  levies,  duties or
assessments  shall be adjusted to be an amount  equal to the amount  which would
have been  incurred had such  portion of the Project been  assessed and taxed at
the prevailing  commercial assessment rates and mill rates throughout the entire
period for which the  calculation  is being made.  Any tax levied on  commercial
property or other like tax based on the area or use of the Project or the Leased
Premises or any tax on rent imposed in lieu of the foregoing  taxes are included
herein.  Property  Taxes  shall not include any  Business  Taxes  payable by the
Tenant  pursuant  to  Section  8.02 and any  similar  Taxes  levied or  assessed
separately against other rentable premises in the Project.

"Rent" means the aggregate of all amounts  payable by the Tenant to the Landlord
under  this  Lease.  Provided  that any and all  amounts  so  payable  which are
collectible  by the Landlord as agent of a taxing  authority and which are Taxes
imposed by that  authority on the Tenant are included in Rent so as to determine
the  Landlord's  rights and  remedies in the case of delay or failure to pay the
same  notwithstanding  that  the  same do not  accrue  to the  Landlord  as rent
hereunder.

                                       8
<PAGE>

"Rentable Area" means the area of the Leased Premises,  the Building or any part
thereof as determined  by the Landlord,  which may be adjusted from time to time
to give  effect to any  structural  or  functional  change and any change in the
leasing pattern in the Building and which shall be calculated in accordance with
the BOMA ANSI  standards  ANSI  Z65.1-1980  (Reaffirmed  in 1989) (except to the
extent altered by this definition) as follows:

(a) in the case of  premises  occupying  the  whole of one or more  floors,  the
Rentable Area of such premises  shall be determined by measuring to and from the
inside  finish  of  permanent  outer  Building  walls  or from the  glass  line,
whichever  extends  further,  but shall not include  stairs and elevator  shafts
(except  stairs and  elevators  exclusively  serving the Tenant where the Leased
Premises  consist  of more than one  floor),  flues,  stacks,  pipe  shafts  and
vertical ducts with their enclosing walls. Washrooms, air conditioning equipment
rooms,  fanrooms,  janitors'  closets,  electrical  closets,  and other  closets
serving  that floor or floors  shall be  included in the  Rentable  Area of such
premises.  No deductions shall be made for columns and projections  necessary to
the Building;

(b) in the case of premises occupying part of a floor, the Rentable Area of such
premises shall be determined by measuring form and to whichever of the following
form the  boundaries  of such  premises:  the inside  finish of permanent  outer
Building walls or from the glass line,  whichever extends further; the centre of
partitions which separate such premises from adjoining premises or public and/or
service  areas;  and the office side of the  corridor  walls or other  permanent
partitions, without in any case, deduction for columns and projections necessary
to the Building,  and includes washrooms,  air conditioning equipment rooms, fan
rooms,  janitors'  closets,  electrical  closets  and other  closets  within and
serving  the  Leased  Premises  exclusively,  but does not  include  stairs  and
elevator  shafts  supplied by the Landlord for use in common with other tenants,
and flues,  stacks,  pipe , shafts or vertical ducts with their  enclosing walls
within the Leased Premises;  the Rentable Area as so determined shall have added
thereto a portion of the area of the public  and/or  service areas on such floor
which, without limitation, shall include corridors, elevator lobbies, washrooms,
air  conditioning  equipment  rooms, fan rooms,  janitors'  closets,  electrical
closets and other  closets  serving that floor.  The portion of such area of the
public  and/or  service  areas so added shall be that  portion from time to time
which the  Rentable  Area of such  premises  bears to the  Rentable  Area of all
premises  leased or set aside from time to time for  leasing by the  Landlord on
that floor (including such premises).

"Security Deposit" has the meaning ascribed in Section 4.02.

"Security Interest" has the meaning ascribed in Section 15.25.

"Services" means those activities,  personnel,  facilities, systems and supplies
required  for the  complete  decoration,  repair,  administration,  replacement,
maintenance, improvement and operation of the Project.

                                       9
<PAGE>

"Taxes" means  comprehensively  all various  classes and types of taxes,  rates,
levies,  fees, duties,  charges and assessments from whatever source arising and
levied, rated, imposed,  assessed,  conferred or chargeable against the Project,
the Leased  Premises  or in respect of the  occupancy  and  activity  carried on
therein or on account of the Landlord's  ownership of or interest in the Project
or on account of rents  payable  with respect  therefor  and  includes  Property
Taxes, business taxes or any like tax or other amount levied or assessed in lieu
of, in addition to, or in substitution  therefor,  whether or not, similar to or
of the  foregoing  character  and whether or not in existence on the date hereof
together with an administrative charge for allocation of Taxes and all costs and
expenses  incurred by the  Landlord in good faith in  contesting,  resisting  or
appealing  any such  taxes,  rates,  duties,  levies or  assessments  including,
without  limitation,  legal  fees  on a  solicitor  and  client  or  substantial
indemnity  basis and other  professional  fees and  interest  and  penalties  on
deferred payments;  but excluding income or profits taxes upon the income of the
Landlord.

"Tenant's Occupancy Costs" means for each Fiscal Year the Tenant's Proportionate
Share of the Operating Costs and the Tenant's  Proportionate  Share of Taxes, in
each case for that Fiscal Year.

"Tenant's  Proportionate  Share" means that proportion that the Rentable Area of
the Leased Premises bears to the Total Rentable Area of the Building.

"Term"  means  the  period  of time set out in Item 7 of the Term  Sheet  unless
sooner terminated.

"Term Sheet" means the pages  identified  as Term Sheet  attached to this Lease;
and all information and  particulars  contained  therein shall form part of this
Lease.

"Total  Rentable  Area of the  Building"  means the total  Rentable  Area of the
Building located at or above grade level.

"Transfer" means:

         (a) an  assignment,  sublease,  licensing or other  disposition  by the
Tenant of this  Lease or any  interest  therein  or any  interest  in the Leased
Premises  (whether or not by operation of law) or in a  partnership  that is the
Tenant  under this Lease,  or a mortgage or charge  (floating or  otherwise)  or
other  encumbrance  of or upon this Lease by the Tenant  except a Transfer  that
occurs on the death of the Transferor;

         (b) a  parting  with or  sharing  of  possession  of all or part of the
Leased Premises; and

         (c) a  transfer  or issue by sale,  assignment,  bequest,  inheritance,
operation of law or other disposition, or by subscription, of all or part of the
corporate shares of the Tenant which results in a change in the effective voting
control  of the Tenant  (unless  the Tenant is a  corporation  whose  shares are
traded or a stock  exchange in Canada or the United States or is a subsidiary of
such a corporation).

"Transferor" and "Transferee"  have meanings  corresponding to the definition of
"Transfer". In the case of a Transfer described in item (c) of the definition of
Transfer,  the Transferor is the Person that has or would have effective  voting
control  before the Transfer and the  Transferee is the Person that has or would
have effective voting control after the Transfer.  The singular and plural forms
of defined words and phrases shall have corresponding meanings.

                                       10
<PAGE>

                                  SCHEDULE "C"

                              RULES AND REGULATIONS

1. Definition - In these rules and regulations, "Tenant" includes the employees,
servants,  agents,  invitees,  subtenants and licensees of the Tenant and others
over whom the Tenant can reasonably be expected to exercise its control.

2. Common Elements - The Landlord reserves entire control of the Common Elements
and will  maintain  them in such  manner as it deems best for the benefit of the
tenants generally.  The Landlord reserves the right to restrict and regulate the
use of the Common Elements by the Tenant and by persons making deliveries to the
Tenant.

3. Smoking - Smoking is not permitted in the Common  Elements,  except as may be
otherwise designated. The Landlord shall have the right, in its sole discretion,
to determine whether any designated  smoking area shall be established,  and the
size and location of any such area.

4. Obstructions - The sidewalks,  driveways,  entrances,  vestibules,  passages,
corridors,  halls, elevators and stairways shall not be encumbered or obstructed
by the Tenant or be used by it for any  purpose  other than for  entrance to and
exit from the Leased Premises.

5. Deliveries - The Tenant shall not permit the parking of delivery  vehicles so
as to interfere  with the use of any driveway,  walkway,  parking area, or other
Common  Elements.  The Tenant shall  ensure that  deliveries  of  materials  and
supplies to the Leased Premises are made through such  entrances,  elevators and
corridors  and at such  times  as may  from  time to time be  designated  by the
Landlord and shall  promptly pay or cause to be paid to the Landlord the cost of
repairing  any damage in or to the  Building  caused by any person  making  such
deliveries. The Landlord reserves the right to remove at the expense and risk of
the owner any vehicle not using designated "vehicle standing" areas.

6. Security - Tile Landlord may from time to time adopt appropriate  systems and
procedures  for the security and safety of the  Building  including  restricting
access during non-business hours and the Tenant shall comply with the Landlord's
reasonable requirements relating thereto.

7.  Locks - No  additional  locks or bolts of any kind  shall be  placed  by the
Tenant  upon any of the doors or windows of the Leased  Premises,  nor shall any
changes  whatsoever be made to existing locks or the mechanics thereof except by
the Landlord at its option. The Tenant shall not permit any duplicate keys to be
made,  but  additional  keys as  reasonably  required  shall be  supplied by the
Landlord  when  requested by the Tenant in writing and at the Tenant's  expense.
Upon  termination of the Lease,  the Tenant shall  surrender to the Landlord all
keys to the Leased  Premises and any other parts of the Building  together  with
any parking passes or other devices permitting entry.

8.  Antennae - The  Tenant  shall not mount or place an antenna or aerial of any
nature on the exterior of the Leased Premises or Building.

                                       1
<PAGE>

9. Garbage - The handling and disposal of garbage shall comply with arrangements
prescribed by the Landlord from time to time.  No  disproportionate  or abnormal
quantity of waste material shall be allowed to accumulate in the Leased Premises
and the cost of removal or clearing  of  quantities  in excess of such  normally
provided service may be charged to the Tenant.

10. Repairs,  Alterations and Improvements - The Tenant shall carry out repairs,
maintenance,  alterations  and  improvements  in the Leased Premises only during
times  agreed to in  advance  by the  Landlord  and in a manner  which  will not
interfere with the rights of other tenants in the Building.

11.  Maintenance - The Tenant shall  provide  adequate  facilities  and means to
prevent the  soiling of walls,  floors and  carpets in and  abutting  the Leased
Premises  whether by shoes,  overshoes,  any acts or  omissions of the Tenant or
otherwise.

12.  Installations and Wiring - The Tenant shall not mark, paint,  drill into or
in any way deface the walls, ceilings,  partitions, floors or other parts of the
Leased  Premises and the Building  except with the prior written  consent of the
Landlord  and  as  it  may  direct.   If  the  Tenant   desires   electrical  or
communications connections,  the Landlord reserves the right to direct qualified
persons as to where and how the wires  should be  introduced,  and without  such
directions,  no boring or cutting  for wires will be  permitted.  No gas pipe or
electric  wire will be  permitted  which has not been ordered or  authorized  in
writing by the Landlord.

13.  Heating,  Air  Conditioning  and  Plumbing  Systems - The Tenant  shall not
attempt  any  repairs,   alterations  or  modifications  to  the  heating,   air
conditioning or plumbing systems.

14. Water  Fixtures - The Tenant shall not use the plumbing  facilities  for any
other purpose than that for which they are constructed, and no foreign substance
of any kind shall be thrown  therein,  and the Tenant  shall pay the cost of any
breakage, stoppage or damage resulting from a violation of this provision.

15.  Personal Use of Leased Premises - The Leased Premises shall not be used for
residential, lodging or sleeping purposes or for the storage of personal effects
or property not required for business purposes as permitted under the Lease.

16.  Solicitations  - The  Landlord  reserves  the right to restrict or prohibit
canvassing, soliciting or peddling in the Building.

17.  Heavy  Articles - The  Tenant  shall not,  in the  Leased  Premises  or the
Building,  bring in, take out,  position,  construct,  install or move  anything
liable to injure or destroy any part of the Building including, without limiting
the generality of the  foregoing,  any safe,  business  machinery or other heavy
machinery or equipment  without the prior written  consent of the  Landlord.  In
giving such consent,  the Landlord shall have the right, in its sole discretion,
to prescribe  the  permitted  weight and the position  thereof,  and the use and
design of planks,  skids or platforms required to distribute the weight thereof.
All damage done to the  Building by moving or using any such heavy  equipment or
machinery  shall be repaired  at the  expense of the  Tenant.  The moving of all
heavy equipment or other machinery  shall occur only by prior  arrangement  with
the Landlord.

                                       2
<PAGE>

18. Bicycles, Animals - The Tenant shall not bring any animals, except for guide
dogs, into the Building,  and shall not permit bicycles or other vehicles inside
or on the sidewalks outside the Building except in areas designated from time to
time by the Landlord for such purposes.

19. Furniture and Equipment - The Tenant shall ensure that furniture,  equipment
and fixtures  being moved into or out of the Leased  Premises are moved  through
such  entrances,  elevators and corridor,  and at such times as may from time to
time be designated by the Landlord and shall promptly pay or cause to be paid to
the Landlord the cost of repairing any damage in the Building caused thereby.

20.  Heating/Cooling  - The Tenant shall not use any means of heating or cooling
the  Leased  Premises  other than that  provided  by or  specifically  otherwise
permitted in writing by the Landlord.

21. Undue Electrical Loads Heat Vibration - No material or equipment which could
cause undue loads on  electrical  circuits,  or undue  vibration,  heat or noise
shall be  brought  into the  Building  or used  therein  by or on  behalf of the
Tenant, and no machinery or tools of any kind shall be affixed to or used in the
Leased Premises without the prior written consent of the Landlord.

22. Fire  Regulations - No Tenant shall do or permit  anything to be done in the
Leased Premises or bring or keep anything therein which will in any way increase
the risk of fire, or obstruct or interfere with the rights of other tenants,  or
violate  or act at  variance  with  the  laws  relating  to  fires  or with  the
regulations  of the fire  department  or the board of health.  The Tenant  shall
cooperate in any fire drills and shall  participate  in all fire  prevention  or
safety programs designated by the Landlord.

23.  Flammable  Materials - No flammable oils or other  flammable,  dangerous or
explosive  materials  shall  be kept  or  permitted  to be  kept  in the  Leased
Premises.

24. Food and Beverages - Only persons approved from time to time by the Landlord
may prepare, solicit orders for, sell, serve or distribute foods or beverages in
the Building,  or use the elevators,  corridors or other Common Elements for any
such  purpose.  The Tenant  shall not permit in the Leased  Premises  the use of
equipment for the preparation,  serving,  sale,  distribution,  or dispensing of
food and beverages  except with the prior written consent of the Landlord and in
accordance with arrangements approved by the Landlord.

25. Notice of Accidents - The Tenant shall give immediate notice to the Landlord
in case of fire or accident in the Leased  Premises  or in the  Building,  or in
case of defects therein or in any fixtures or equipment thereof, notwithstanding
the Landlord may have no obligations with respect thereto.

26.  Janitorial  Services  - The  Tenant  shall not use or engage  any person or
persons other than the janitor or janitorial  contractor of the Landlord for the
purpose of any cleaning of the Leased  Premises,  except with the prior  written
consent of the Landlord.

                                       3
<PAGE>

27.  Dangerous or Immoral  Activities - The Tenant shall not make any use of the
Leased  Premises  which could result in risk or injury to any person,  nor shall
the Leased Premises be used for any immoral or criminal purpose.

28.  Proper  Conduct - The  Tenant  shall not  perform  any acts or carry on any
practice  which may  damage the Common  Elements  or be a nuisance  to any other
tenant in the Project.

29. Additional Rules and Regulations - The Landlord shall have the right to make
such other and further  reasonable rules and regulations as in its sole judgment
may  from  time  to time be  necessary  or of  benefit  for  the  safety,  care,
cleanliness  and  appearance of the Project,  and for the  preservation  of good
order therein.

                                       4
<PAGE>

                                  SCHEDULE "D"

                                 LANDLORD'S WORK

                              INTENTIONALLY DELETED

                                       1
<PAGE>

                                  SCHEDULE "E"

            ADDITIONAL COVENANTS, AGREEMENTS AND CONDITIONS (IF ANY)

1.       PARKING

         During  the  Term,   the  Landlord   shall   provide  the  Tenant  with
         twenty-seven (27) unreserved  surface parking stalls at the Building on
         a first come,  first served  basis at a monthly  charge of $35.00 + GST
         per  unreserved  surface  stall,  subject to change  from time to time.
         Notwithstanding  the  foregoing  there  shall be no charge for  parking
         during the first year of the Term.

2.       OPTION

         Provided that, and for so long only as:

         (a)      the Tenant pays the rents and  performs  each and every of the
                  covenants, conditions and agreements in the Lease reserved and
                  contained  and on  the  part  of the  Tenant  to be  paid  and
                  performed and is not and has not been in default in respect of
                  any of the same and  there has been no  adverse  change of any
                  sort in the Tenant's financial condition or capacity; and

         (b)      the  Tenant is RENT  SHIELD  CANADA  LIMITED  and is itself in
                  possession of and occupying and conducting its business in the
                  whole  of the  Leased  Premises  and the  Lease  has not  been
                  assigned and no part of the Leased Premises has been subleased
                  by the Tenant,

         the Landlord  will,  upon the request in writing by the Tenant given at
         least 9 months and not more than 12 months prior to the  expiration  of
         the Term (the "Notice Period"),  grant to the Tenant a new lease of the
         Leased  Premises  for 1 further term of 5 years upon and subject to the
         covenants, conditions and agreements as are set forth in the Landlord's
         standard  form of lease for the Building then in use, and the new lease
         shall not contain any  provision  for further new leases or for renewal
         and the annual Basic Rent shall be the market rate for similar premises
         of similar size,  use and location 120 days prior to the expiry date of
         this Lease,  without deduction or allowance for or consideration of any
         tenant  inducements,   leasehold  improvement   allowances,   rent-free
         periods,  lease takeovers,  turnkey or "build-to-suit"  arrangements or
         other  concessions  or  inducements  offered or given by  landlords  to
         achieve such rental (the "New Annual Basic Rent").  If requested by the
         Tenant during the Notice  Period,  the Landlord will provide the Tenant
         with a copy of its standard form of lease for the Building then in use.
         The New Annual  Basic Rent shall be mutually  agreed to by the Landlord
         and the Tenant at least 90 days prior to the expiration of the Term.

         In no event  shall the New  Annual  Basic  Rent be less than the annual
         Basic Rent payable during the last 12 months of the Term.

                                       1
<PAGE>

3.       EARLY OCCUPANCY

         The Tenant  shall have early  occupancy  of the Leased  Premises on the
         date which is the later of the date all  documentation  required by the
         Landlord has been fully executed by all parties in accordance  with the
         provisions of Paragraph 3.02 of the Lease, or June 15, 2004, save as to
         payment of Rent.

4.       LEASEHOLD IMPROVEMENTS

         In the event  that the  Tenant  wishes to  install  or make  additional
         Leasehold  Improvements to the Leased Premises, the Landlord shall make
         said  improvements  in accordance with plans and  specifications  to be
         mutually  agreed upon to a maximum cost of $10.00 per square foot. Said
         cost shall be  amortized  over the Term of the Lease  using an interest
         rate  factor of 10% and the Basic Rent shall be  adjusted  accordingly,
         Should the Tenant exercise such Leasehold Improvements priviledge, then
         it shall  supply a Security  Deposit  equal to two (2) mouths Basic and
         additional Rent forthwith upon request by the Landlord.

5.       CROSS DEFAULT

         The Tenant has also  leased  premises  located at 200  Yorkland  Blvd.,
         Suite 200,  Toronto,  Ontario,  from the  Landlord  pursuant to a lease
         dated  the  21st day of  November,  2003  (the  "First  Lease").  It is
         understood  and  agreed  that  any  default  in  respect  of any of the
         covenants,   conditions   and  agreements  in  the  First  Lease  shall
         constitute  an Event of Default  under  this  Lease and any  default in
         respect of any of the  covenants,  conditions  and  agreements  in this
         Lease shall  constitute  an Event of Default as defined under the First
         Lease.

                                       2
<PAGE>

                                  SCHEDULE "F"

                               INDEMNITY AGREEMENT

                              INTENTIONALLY DELETED

                                       1

<PAGE>

                                  SCHEDULE "G"

                     SECURITY INTEREST - REMEDIES ON DEFAULT

TENANT:                               RENT SHIELD CANADA LIMITED

ADDRESS OF LEASED PREMISES:           200 YORKLAND BLVD.
                                      SUITES 700 and 710
                                      TORONTO, ONTARIO

DATE:                                 June 16, 2004

1        If the Security  Interest  becomes  enforceable,  the Landlord may,  at
         its option:

         (a)  appoint  any  Person  as  receiver  of  all  or  any  part  of the
Collateral.  The word  "receiver"  as used in this  section  1  includes  both a
receiver and a receiver and manager. The Landlord may, from time to time, remove
or replace any appointed receiver,  or may institute proceedings in any court of
competent  jurisdiction for the appointment of a receiver or for the sale of all
or any part of the  Collateral.  Any  receiver  will have and may  exercise  all
rights and powers  conferred  upon the Landlord  under this Lease  together with
such other rights and powers  which such  receiver may have at law or in equity,
Any  receiver  will be  considered  to be the agent of the  Tenant so far as the
responsibility for the receiver's acts is concerned and the Landlord will not be
responsible for any act or omission on the part of the receiver, whether wilful,
negligent, imprudent or otherwise;

         (b) take such steps as it  considers  necessary  or desirable to obtain
possession of all or any part of the  Collateral  and the Tenant agrees that the
Landlord may, by its servants, agents or receiver, at any time during the day or
night and without prior notice,  enter the Leased  Premises where the Collateral
may be found for the purpose of taking possession of or removing or immobilizing
the Collateral or any part of it;

         (c) in connection with the realization of the Collateral,  carry on all
or any part of the  business and  undertaking  of the Tenant and may enter upon,
occupy  and use all or any  part of the  property  owned  or used by the  Tenant
(including  the  Collateral)  for such time as the  Landlord  sees fit,  free of
charge,  and neither the  Landlord  nor any agent or receiver  appointed  by the
Landlord  will be liable to the Tenant for any  negligent  or  imprudent  act or
omission in so doing or in respect of any rent, charges, depreciation or damages
in connection with such actions;

         (d) seize,  collect,  realize,  borrow  money on the security of, sell,
obtain  payment for, give valid receipts and  discharges  for,  release to third
parties or otherwise deal with or dispose of the Collateral or any part of it in
the manner,  upon the terms and  conditions and at the time or times as may seem
to it advisable, without notice to the Tenant. The mode, terms and conditions of
disposition of the  Collateral or any part of it will be in the sole  discretion
of the  Landlord  and it will be deemed to be  commercially  reasonable  for the
Landlord to dispose of the  Collateral or any part of it in the ordinary  course
of its business.  Without  limiting any other rights the Landlord may have,  the
Landlord  may  purchase  all or any part of the  Collateral  at a private  sale,
auction, tender, public sale or any other mode of disposition;

                                       1
<PAGE>

         (e)  charge on its own  behalf  and pay to others  reasonable  sums for
expenses incurred and for services rendered (including legal fees on a solicitor
and client or  substantial  indemnity  basis and fees for  receivers,  managers,
accountants and other professionals) in connection with the Landlord's realizing
or  preparing  to  realize  on  the  Collateral  (including  without  limitation
obtaining   advice  in  preparation  for  or  otherwise,   in  respect  of  such
realization)  or otherwise  dealing with the  Collateral in accordance  with the
provisions  of the Lease and all such sums will be  payable by the Tenant to the
Landlord on the  earlier of demand and payment of any such sum by the  Landlord,
and will be secured by the Security Interest; or

         (f) if it deems it necessary for the proper  realization  of all or any
part  of the  Collateral,  pay any  claim,  lien,  security  interest  or  other
encumbrance  that may exist or be  threatened  against the  Collateral,  and the
amount paid,  together  with all costs and expenses of the Landlord  incurred in
that connection, will be payable by the Tenant to the Landlord on the earlier of
demand and payment thereof by the Landlord,  and will be secured by the Security
Interest.

None of the foregoing  remedies  shall be exclusive of or dependent on any other
remedy,  but any one or more of such remedies may be exercised from time to time
independently or in combination.

2 The  Landlord  will have the right to  postpone  indefinitely  the sale of the
Collateral  or any part of it and shall  further  have the right,  pending  that
sale, to lease the  Collateral or any part of it to any person for any period as
the Landlord in its absolute  discretion  deems necessary in order to recover or
to attempt to recover any indebtedness secured by the Security Interest.

3. The Landlord will not be liable or accountable  for any failure to realize or
othewise  deal  with the  Collateral  or any part of it and will not be bound to
institute  proceedings  for the purpose of effecting any of the foregoing or for
the purpose of preserving  any rights of the  Landlord,  the Tenant or any other
person in respect of the Collateral.

4. All monies received or collected by the Landlord in respect of the Collateral
may be reapplied and reapplied as the Landlord deems fit.

                                       2
<PAGE>

                                  SCHEDULE "H"

                           CONTENTS OF LEASED PREMISES

The following Schedule "H" is referred to in Section 9.05, Environmental Issues,
in the Lease.

All contents and materials, other than standard office furnishings and supplies,
stored in the Leased Premises are as follows:

(please include, in detail, all materials, Pollutants, including but not limited
to,  chemicals  and  related  items  that are used  and/or  stored in the Leased
Premises):

1.       ______________________________________________________________________;

2.       ______________________________________________________________________;

3.       ______________________________________________________________________;

4.       ______________________________________________________________________;

5.       ______________________________________________________________________;

6.       ______________________________________________________________________;

7.       ______________________________________________________________________;

8.       ______________________________________________________________________;

9.       ______________________________________________________________________;

10.      ______________________________________________________________________;

11.      ______________________________________________________________________;

12.      ______________________________________________________________________.

                                       1EXHIBIT 10.1

     EMPLOYMENT AGREEMENT made as of the 12th day of September 2005 by and
between ARROW ELECTRONICS, INC., a New York corporation with its principal
office at 50 Marcus Drive, Melville, New York 11747 (the "Company"), and J.
EDWARD COLEMAN, residing at 1829 Hidden Point Road, Annapolis, MD 21409 (the
"Executive").

     WHEREAS, the Company wishes to employ the Executive as Senior Vice
President and President of North American Computer Products, with the
responsibilities and duties of an officer of the Company; and

     WHEREAS, the Executive wishes to accept such employment and to render
services to the Company on the terms set forth in, and in accordance with the
provisions of, this Employment Agreement (the "Agreement");

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

     1.   Employment and Duties.
          ----------------------

          a)   Employment. The Company hereby employs the Executive for the
Employment Period defined in Paragraph 3, to perform such duties for the
Company, its subsidiaries and affiliates and to hold such offices as may be
specified from time to time by the Company's Board of Directors, subject to the
following provisions of this Agreement. The Executive hereby accepts such
employment.

          b)   Duties and Responsibilities. It is contemplated that the
Executive will be Senior Vice President of the Company and President of
North American Computer Products, but the Board of Directors shall have the
right to adjust the duties, responsibilities, and title of the Executive as the
Board of Directors may from time to time deem to be in the interests of the
Company (provided, however, that during the Employment Period, without the
consent of the Executive, he shall not be assigned any titles, duties or
responsibilities which, in the aggregate, represent a material diminution in, or
are materially inconsistent with, his prior title, duties, and responsibilities
as Senior Vice President and President of North American Computer Products).

          If the Board of Directors does not either continue the Executive in
the office of Senior Vice President and President of North American Computer
Products or elect him to some other executive office satisfactory to the
Executive, the Executive shall have the right to decline to give further
service to the Company and shall have the rights and obligations which would
accrue to him under Paragraph 6 if he were discharged without cause. If the
Executive decides to exercise such right to decline to give further service, he
shall within forty-five days after such action or omission by the Board of
Directors give written notice to the Company stating his objection and the
action he thinks necessary to correct it, and he shall permit the Company to
have a forty-five day period in which to correct its action or omission. If the
Company makes a correction satisfactory to the Executive, the Executive shall be
obligated to continue to serve the Company. If the Company does not make such a
correction, the Executive's rights and obligations under Paragraph 6 shall
accrue at the expiration of such forty-five day period.

                                     - 1 -

<PAGE>

          c)   Time Devoted to Duties. The Executive shall devote all of his
normal business time and efforts to the business of the Company, its
subsidiaries and its affiliates, the amount of such time to be sufficient, in
the reasonable judgment of the Board of Directors, to permit him diligently and
faithfully to serve and endeavor to further their interests to the best of his
ability.

     2.   Compensation.
          ------------

          a)   Monetary Remuneration and Benefits. During the Employment Period,
the Company shall pay to the Executive for all services rendered by him in
any capacity:

          i. a minimum base salary of $400,000 per year (payable in accordance
     with the Company's then prevailing practices, but in no event less
     frequently than in equal monthly installments), subject to increase if the
     Board of Directors of the Company in its sole discretion so determines;
     provided that, should the company institute a company-wide pay cut/furlough
     program, such salary may be decreased by up to 15%, but only for as long as
     said company-wide program is in effect;

          ii. such additional compensation by way of salary or bonus or fringe
     benefits as the Board of Directors of the Company in its sole discretion
     shall authorize or agree to pay, payable on such terms and conditions as it
     shall determine; and

          iii. such employee benefits that are made available by the Company to
     its other executives generally.

          b) Annual Incentive Payment. The Executive shall participate in the
Company's Management Incentive Plan (or such alternative, successor, or
replacement plan or program in which the Company's principal operating
executives, other than the Chief Executive Officer, generally participate) and
shall have a targeted incentive thereunder of not less than $240,000 per annum;
provided, however, that the Executive's actual incentive payment in any year
shall be measured by the Company's performance against goals established for
that year and that such performance may produce an incentive payment ranging
from none to twice the targeted amount. The Executive's incentive payment for
any year will be appropriately pro-rated to reflect a partial year of
employment.

                                     - 2 -

<PAGE>

          c) Supplemental Executive Retirement Plan. The Executive shall
participate in the Company's Unfunded Pension Plan for Selected Executives
(the "SERP").

          d) Automobile. During the Employment Period, the Company will pay the
Executive a monthly automobile allowance of $850.

          e) Expenses. During the Employment Period, the Company agrees to
reimburse the Executive, upon the submission of appropriate vouchers, for
out-of-pocket expenses (including, without limitation, expenses for travel,
lodging and entertainment) incurred by the Executive in the course of his duties
hereunder.

          f) Office and Staff. The Company will provide the Executive with an
office, secretary and such other facilities as may be reasonably required
for the proper discharge of his duties hereunder.

          g) Indemnification. The Company agrees to indemnify the Executive for
any and all liabilities to which he may be subject as a result of his
employment hereunder (and as a result of his service as an officer or director
of the Company, or as an officer or director of any of its subsidiaries or
affiliates), as well as the costs of any legal action brought or threatened
against him as a result of such employment, to the fullest extent permitted by
law.

          h) Participation in Plans. Notwithstanding any other provision of this
Agreement, the Executive shall have the right to participate in any and all
of the plans or programs made available by the Company (or it subsidiaries,
divisions or affiliates) to, or for the benefit of, executives (including the
annual stock option and performance share programs) or employees in general, on
a basis consistent with other senior executives.

     3.   The Employment Period.
          ---------------------

          The "Employment Period," as used in the Agreement, shall mean the
period beginning as of the date hereof and terminating on the last day of the
calendar month in which the first of the following occurs:

          a) the death of the Executive;

          b) the disability of the Executive as determined in accordance with
Paragraph 4 hereof and subject to the provisions thereof;

          c) the termination of the Executive's employment by the Company for
cause in accordance with Paragraph 5 hereof; or

          d) September 11, 2007; provided, however, that, unless sooner
terminated as otherwise provided herein, the Employment Period shall
automatically be extended for one or more twelve (12) month periods beyond the
then scheduled expiration date thereof unless between the 18th and 12th month
preceding such scheduled expiration date either the Company or the Executive
gives the other written notice of its or his election not to have the Employment
Period so extended.

                                     - 3 -

<PAGE>

     4.   Disability.
          ----------

          For purposes of this Agreement, the Executive will be deemed
"disabled" upon the earlier to occur of (i) his becoming disabled as defined
under the terms of the disability benefit program applicable to the Executive,
if any, and (ii) his absence from his duties hereunder on a full-time basis for
one hundred eighty (180) consecutive days as a result of his incapacity due to
accident or physical or mental illness. If the Executive becomes disabled (as
defined in the preceding sentence), the Employment Period shall terminate on the
last day of the month in which such disability is determined. Until such
termination of the Employment Period, the Company shall continue to pay to the
Executive his base salary, any additional compensation authorized by the
Company's Board of Directors, and other remuneration and benefits provided in
accordance with Paragraph 2 hereof, all without delay, diminution or proration
of any kind whatsoever (except that his remuneration hereunder shall be reduced
by the amount of any payments he may otherwise receive as a result of his
disability pursuant to a disability program provided by or through the Company),
and his medical benefits and life insurance shall remain in full force. After
termination of the Employment Period as a result of the disability of the
Executive, the medical benefits covering the Executive and his family shall
remain in place (subject to the eligibility requirements and other conditions
continued in the underlying plan, as described in the Company's employee
benefits manual, and subject to the requirement that the Executive continue to
pay the "employee portion" of the cost thereof), and the Executive's life
insurance policy under the Management Insurance Program shall be transferred to
him, as provided in the related agreement, subject to the obligation of the
Executive to pay the premiums therefor.

          In the event that, notwithstanding such a determination of disability,
the Executive is determined not to be totally and permanently disabled prior to
the then scheduled expiration of the Employment Period, the Executive shall be
entitled to resume employment with the Company under the terms of this Agreement
for the then remaining balance of the Employment Period.

     5.   Termination for Cause.
          ---------------------

          In the event of any malfeasance, willful misconduct, active fraud or
gross negligence by the Executive in connection with his employment hereunder,
the Company shall have the right to terminate the Employment Period by giving
the Executive notice in writing of the reason for such proposed termination. If
the Executive shall not have corrected such conduct to the satisfaction of
the Company within thirty days after such notice, the Employment Period shall
terminate and the Company shall have no further obligation to the Executive
hereunder but the restriction on the Executive's activities contained in
Paragraph 7 and the obligations of the Executive contained in Paragraphs 8(b)
and 8(c) shall continue in effect as provided therein.

                                     - 4 -

<PAGE>

     6.   Termination Without Cause.
          -------------------------

          In the event that the Company discharges the Executive without cause,
the Executive shall be entitled to the salary provided in Paragraph 2(a),
two-thirds of the targeted incentive provided in Paragraph 2(b), the vesting of
any restricted stock awards, performance shares and the immediate exercisability
of any stock options, as well as his rights under Paragraph 4, which would have
vested, been earned or become exercisable during the full Employment Period
(which, in that event, shall continue until the then scheduled expiration of the
Employment Period unless sooner terminated by the Executive's disability or
death). Any Amounts payable to the Executive under this Paragraph 6 shall be
reduced by the amount of the Executive's earnings from other employment (which
the Executive shall have an affirmative duty to seek; provided, however, that
the Executive shall not be obligated to accept a new position which is not
reasonably comparable to his employment with the Company).

     7.   Non-Competition; Trade Secrets.
          ------------------------------

          During the Employment Period and for a period of one year after the
termination of the Employment Period, the Executive will not, directly or
indirectly:

          a) Disclosure of Information. Use, attempt to use, disclose or
otherwise make known to any person or entity (other than to the Board of
Directors of the Company or otherwise in the course of the business of the
Company, its subsidiaries or affiliates and except as may be required by
applicable law):

          i. any knowledge or information, including, without limitation, lists
     of customers or suppliers, trade secrets, know-how, inventions,
     discoveries, processes and formulae, as well as all data and records
     pertaining thereto, which he may acquire in the course of his employment,
     in any manner which may be detrimental to or cause injury or loss to the
     Company, its subsidiaries or affiliates; or

          ii. any knowledge or information of a confidential nature (including
     all unpublished matters) relating to, without limitation, the business,
     properties, accounting, books and records, trade secrets or memoranda of
     the Company, its subsidiaries or affiliates, which he now knows or may come
     to know in any manner which may be detrimental to or cause injury or loss
     to the Company, its subsidiaries or affiliates.

          b) Non-Competition. Engage or become interested in the United States,
Canada or Mexico (whether as an owner, shareholder, partner, lender or other
investor, director, officer, employee, consultant or otherwise) in the
business of distributing electronic parts, components, supplies or systems, or
any other business that is competitive with the principal business or businesses
then conducted by the Company, its subsidiaries or affiliates (provided,
however, that nothing contained herein shall prevent the Executive from
acquiring or owning less than 1% of the issued and outstanding capital stock or
debentures of a corporation whose securities are listed on the New York Stock
Exchange, American Stock Exchange, or the National Association of Securities
Dealers Automated Quotation System, if such investment is otherwise permitted by
the Company's Human Resource and Conflict of Interest policies);

                                     - 5 -

<PAGE>

          c) Solicitation. Solicit or participate in the solicitation of any
business of any type conducted by the Company, its subsidiaries or affiliates,
during said term or thereafter, from any person, firm or other entity which was
or at the time is a supplier or customer, or prospective supplier or customer,
of the Company, its subsidiaries or affiliates; or

          d) Employment. Employ or retain, or arrange to have any other person,
firm or other entity employ or retain, or otherwise participate in the
employment or retention of, any person who was an employee or consultant of the
Company, its subsidiaries or affiliates, at any time during the period of twelve
consecutive months immediately preceding such employment or retention.

          The Executive will promptly furnish in writing to the Company, its
subsidiaries or affiliates, any information reasonably requested by the
Company (including any third party confirmations) with respect to any activity
or interest the Executive may have in any business.

          Except as expressly herein provided, nothing contained herein is
intended to prevent the Executive, at any time after the termination of the
Employment Period, from either (i) being gainfully employed or (ii) exercising
his skills and abilities outside of such geographic areas, provided in either
case the provisions of this Agreement are complied with.

     8.   Preservation of Business.
          ------------------------

          a) General. During the Employment Period, the Executive will use his
best efforts to advance the business and organization of the Company, its
subsidiaries and affiliates, to keep available to the Company, its subsidiaries
and affiliates, the services of present and future employees and to advance the
business relations with its suppliers, distributors, customers and others.

          b) Patents and Copyrights, etc. The Executive agrees, without
additional compensation, to make available to the Company all knowledge
possessed by him relating to any methods, developments, inventions, processes,
discoveries and/or improvements (whether patented, patentable or unpatentable)
which concern in any way the business of the Company, its subsidiaries or
affiliates, whether acquired by the Executive before or during his employment
hereunder.

                                     - 6 -

<PAGE>

          Any methods, developments, inventions, processes, discoveries and/or
improvements (whether patented, patentable or unpatentable) which the Executive
may conceive of or make, related directly or indirectly to the business or
affairs of the Company, its subsidiaries or affiliates, or any part thereof,
during the Employment Period, shall be and remain the property of the Company.
The Executive agrees promptly to communicate and disclose all such methods,
developments, inventions, processes, discoveries and/or improvements to the
Company and to execute and deliver to it any instruments deemed necessary by the
Company to effect the disclosure and assignment thereof to it. The Executive
also agrees, on request and at the expense of the Company, to execute patent
applications and any other instruments deemed necessary by the Company for the
prosecution of such patent applications or the acquisition of Letters Patent in
the United States or any other country and for the assignment to the Company of
any patents which may be issued. The Company shall indemnify and hold the
Executive harmless from any and all costs, expenses, liabilities or damages
sustained by the Executive by reason of having made such patent applications or
being granted such patents.

          Any writings or other materials written or produced by the Executive
or under his supervision (whether alone or with others and whether or not
during regular business hours), during the Employment Period which are related,
directly or indirectly, to the business or affairs of the Company, its
subsidiaries or affiliates, or are capable of being used therein, and the
copyright thereof, common law or statutory, including all renewals and
extensions, shall be and remain the property of the Company. The Executive
agrees promptly to communicate and disclose all such writings or materials to
the Company and to execute and deliver to it any instruments deemed necessary by
the Company to effect the disclosure and assignment thereof to it. The Executive
further agrees, on request and at the expense of the Company, to take any and
all action deemed necessary by the Company to obtain copyrights or other
protections for such writings or other materials or to protect the Company's
right, title and interest therein. The Company shall indemnify and hold the
Executive harmless from any and all costs, expenses, liabilities or damages
sustained by the Executive by reason of the Executive's compliance with the
Company's request.

          c) Return of Documents. Upon the termination of the Employment Period,
including any termination of employment described in Paragraph 6, the
Executive will promptly return to the Company all copies of information
protected by Paragraph 7(a) hereof or pertaining to matters covered by
subparagraph (b) of this Paragraph 8 which are in his possession, custody or
control, whether prepared by him or others.

                                     - 7 -

<PAGE>

     9.   Separability.
          ------------

          The Executive agrees that the provisions of Paragraphs 7 and 8 hereof
constitute independent and separable covenants which shall survive the
termination of the Employment Period and which shall be enforceable by the
Company notwithstanding any rights or remedies the Executive may have under any
other provisions hereof. The Company agrees that the provisions of Paragraph 6
hereof constitute independent and separable covenants which shall survive the
termination of the Employment Period and which shall be enforceable by the
Executive notwithstanding any rights or remedies the Company may have under any
other provisions hereof.

     10.  Specific Performance.
          --------------------

          The Executive acknowledges that (i) the services to be rendered under
the provisions of this Agreement and the obligations of the Executive
assumed herein are of a special, unique and extraordinary character; (ii) it
would be difficult or impossible to replace such services and obligations; (iii)
the Company, its subsidiaries and affiliates will be irreparably damaged if the
provisions hereof are not specifically enforced; and (iv) the award of monetary
damages will not adequately protect the Company, its subsidiaries and affiliates
in the event of a breach hereof by the Executive. The Company acknowledges that
(i) the Executive will be irreparably damaged if the provisions of Paragraphs 6
hereof are not specifically enforced and (ii) the award of monetary damages will
not adequately protect the Executive in the event of a breach thereof by the
Company. By virtue thereof, the Executive agrees and consents that if he
violates any of the provisions of this Agreement, and the Company agrees and
consents that if it violates any of the provisions of Paragraphs 6 hereof, the
other party, in addition to any other rights and remedies available under this
Agreement or otherwise, shall (without any bond or other security being required
and without the necessity of proving monetary damages) be entitled to a
temporary and/or permanent injunction to be issued by a court of competent
jurisdiction restraining the breaching party from committing or continuing any
violation of this Agreement, or any other appropriate decree of specific
performance. Such remedies shall not be exclusive and shall be in addition to
any other remedy which any of them may have.

     11.  Miscellaneous.
          -------------

          a) Entire Agreement; Amendment. This Agreement constitutes the whole
employment agreement between the parties and may not be modified, amended or
terminated except by a written instrument executed by the parties hereto. It is
specifically agreed and understood, however, that the provisions of that certain
letter agreement dated as of September 12, 2005 granting to the Executive
extended separation benefits in the event of a change in control of the Company
shall survive and shall not be affected hereby. All other agreements between the
parties pertaining to the employment or remuneration of the Executive not
specifically contemplated hereby or incorporated or merged herein are terminated
and shall be of no further force or effect.

                                     - 8 -

<PAGE>

          b) Assignment. Except as stated below, this Agreement is not
assignable by the Company without the written consent of the Executive, or
by the Executive without the written consent of the Company, and any purported
assignment by either party of such party's rights and/or obligations under this
Agreement shall be null and void; provided, however, that, notwithstanding the
foregoing, the Company may merge or consolidate with or into another
corporation, or sell all or substantially all of its assets to another
corporation or business entity or otherwise reorganize itself, provided the
surviving corporation or entity, if not the Company, shall assume this Agreement
and become obligated to perform all of the terms and conditions hereof, in which
event the Executive's obligations shall continue in favor of such other
corporation or entity.

          c) Waivers, etc. No waiver of any breach or default hereunder shall be
considered valid unless in writing, and no such waiver shall be deemed a waiver
of any subsequent breach or default of the same or similar nature. The failure
of any party to insist upon strict adherence to any term of this Agreement on
any occasion shall not operate or be construed as a waiver of the right to
insist upon strict adherence to that term or any other term of this Agreement
on that or any other occasion.

          d) Provisions Overly Broad. In the event that any term or provision of
this Agreement shall be deemed by a court of competent jurisdiction to be
overly broad in scope, duration or area of applicability, the court considering
the same shall have the power and hereby is authorized and directed to modify
such term or provision to limit such scope, duration or area, or all of them, so
that such term or provision is no longer overly broad and to enforce the same as
so limited. Subject to the foregoing sentence, in the event any provision of
this Agreement shall be held to be invalid or unenforceable for any reason, such
invalidity or unenforceability shall attach only to such provision and shall not
affect or render invalid or unenforceable any other provision of this Agreement.

          e) Notices. Any notice permitted or required hereunder shall be in
writing and shall be deemed to have been given on the date of delivery or, if
mailed by registered or certified mail, postage prepaid, on the date of mailing:

             i.                 if to the Executive to:

                                J. Edward Coleman
                                1829 Hidden Point Road
                                Annapolis, MD 21409

                                     - 9 -

<PAGE>

             ii.                if to the Company to:

                                Arrow Electronics, Inc.
                                50 Marcus Drive
                                Melville, New York 11747
                                Attention:    Peter S. Brown
                                              Senior Vice President and
                                              General Counsel

Either party may, by notice to the other, change his or its address for notice
hereunder.

          f) New York Law. This Agreement shall be construed and governed in all
respects by the internal laws of the State of New York, without giving effect to
principles of conflicts of law.

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the day
and year first above written.

Attest:                             ARROW ELECTRONICS, INC.

------------------------            By: --------------------------
Assistant Secretary                     Peter S. Brown
                                        Senior Vice President &
                                        General Counsel

                                        THE EXECUTIVE

                                        --------------------------
                                        J. Edward Coleman

                                     - 10 -

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