Document:

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                                                                    EXHIBIT 10.1

                                 DEED OF LEASE

                                By and Between

                    W9/LWS REAL ESTATE LIMITED PARTNERSHIP
                                  ("Landlord")

                                      and

                             CERTICOM CORPORATION
                                  ("Tenant")

                                                         ,
                             *   *   *   *   *   *

                             1175 Herndon Parkway
                               Herndon, Virginia

                                        HOLLAND & KNIGHT LLP
                                        2100 Pennsylvania Avenue, N.W.
                                        Suite 400
                                        Washington, D.C. 20037
                                        (202) 955-3000
                                        (202) 955-5564 (Fax)
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                               TABLE OF CONTENTS
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1.   BASIC LEASE TERMS...........................................................      1

2.   PREMISES....................................................................      1

3.   TERM........................................................................      2

4.   RENT........................................................................      2

5.   SECURITY DEPOSIT............................................................      6

6.   USE.........................................................................      7

7.   ASSIGNMENT AND SUBLETTING...................................................      8

8.   ALTERATIONS AND FIXTURES....................................................     10

9.   UTILITIES AND SERVICES......................................................     11

10.  RIGHTS OF LANDLORD..........................................................     12

11.  LIABILITY...................................................................     13

12.  INSURANCE...................................................................     13

13.  FIRE OR CASUALTY............................................................     14

14.  EMINENT DOMAIN..............................................................     15

15.  SUBORDINATION AND ESTOPPEL CERTIFICATES.....................................     15

16.  DEFAULT AND REMEDIES........................................................     15

17.  PAYMENT OF TENANT'S OBLIGATIONS BY LANDLORD AND UNPAID RENT.................     17

18.  VOLUNTARY SURRENDER.........................................................     17

19.  ABANDONMENT OF PERSONAL PROPERTY............................................     17

20.  HOLD-OVER...................................................................     17

21.  PARKING.....................................................................     18

22.  NOTICES.....................................................................     18

23.  BROKERS.....................................................................     18

24.  LANDLORD'S LIEN.............................................................     18

25.  RULES AND REGULATIONS.......................................................     18

26.  QUIET ENJOYMENT.............................................................     18

27.  ENVIRONMENTAL CONCERNS......................................................     18

28.  OPTION TO EXTEND TERM.......................................................     19

29.  MISCELLANEOUS PROVISIONS....................................................     20
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                                 DEED OF LEASE

     THIS DEED OF LEASE (the "Lease") is made as of the 11/th/ day of October,
2000 (the "Effective Date"), by and between W9/LWS REAL ESTATE LIMITED
PARTNERSHIP, a Delaware limited partnership ("Landlord") and CERTICOM
CORPORATION, a Canadian corporation ("Tenant"), who agree as follows:

1.   BASIC LEASE TERMS. The following terms shall have the following meanings
in this Lease:

          a.   Premises               Approximately 5,982 rentable square feet
                                      of office space comprising a portion of
                                      the ground floor of the Building
                                      (described in Section 1.b, below), all as
                                      outlined on the floor plan attached
                                      hereto as Exhibit A.
                                                ---------

          b.   Building:              1175 Herndon Parkway Herndon, Virginia
                                      (the "Building"), containing
                                      approximately 33,653 rentable square
                                      feet of space.

          c.   Commencement Date:     October 6, 2000

               Term:                  Seven (7) years

          d.   Initial Annual Base    $29.00 per rentable square foot
               Rent*                  $173,478.00 per annum
                                      $14,456.50 per month

                  [*subject to escalation as provided for in this Lease]

          e.   Base Year              2001

          f.   Tenant's Pro Rata      4.71%*
               Share of Operating
               Expenses

               Tenant's Pro Rata      4.71%*
               Share of Real Estate
               Taxes:

                [*subject to adjustments as provided for in this Lease]

          g.   Address for Notices:

               To Landlord:           W9/LWS Real Estate Limited Partnership
                                      c/o Lincoln Property Company
                                      4602 N. Fairfax Drive, Suite 1115
                                      Arlington, Virginia 22203
                                      Attention: Property Manager

               With a copy to:        Holland & Knight LLP
                                      2100 Pennsylvania Avenue, N.W.
                                      Suite 400
                                      Washington, D.C. 20037
                                      Attention: David S. Kahn, Esquire

               To Tenant:             At the Premises

          h.   Security Deposit:      $128,000.00

2.   PREMISES.

     a.   Premises. In consideration of the Tenant's agreement to pay the
          --------
Annual Base Rent (hereinafter defined) and Additional Rent (hereinafter defined)
and subject to the covenants and conditions hereinafter set forth, Landlord
hereby) leases to Tenant and Tenant hereby hires and leases from Landlord, upon
the terms and conditions set forth herein, those certain premises described in
Section 1.a hereof (the "Premises"). The Premises are located in the Building
described in Section 1.b hereof. The lease of the Premises to Tenant includes
the right, together with other tenants of the Buildings (hereinafter defined)
and members of the public, to use the common public areas of the Project
(hereafter defined), but includes no other rights not specifically set forth
herein. The parties hereto acknowledge that the Building constitutes one of four
(4) office buildings owned by Landlord in the office project known as "Herndon
Corporate Center," the other three (3) buildings having street addresses of 1145
Herndon Parkway, Herndon, Virginia; 1155 Herndon Parkway, Herndon, Virginia;
and 1165 Herndon Parkway, Herndon, Virginia (collectively, along with the
Building, the "Buildings"). For all
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purposes hereunder, the Buildings, the land on which the Buildings are located
(the "Project Land") and all common areas, roadways and public areas therein or
thereon are collectively referred to herein as the "Project." As used herein,
the term "Land" shall mean the land on which the Building is located.

     b.   Leasehold Improvements. Landlord shall deliver the Premises to Tenant
          ----------------------
in its "as is" condition existing on the Commencement Date and Landlord shall
not be required to perform, or pay for, any alterations, decorations or
improvements in connection therewith.

     c.   Acceptance. The taking of possession of the Premises by Tenant shall
          ----------
constitute an acknowledgment by Tenant that the Premises are in good and
habitable condition or that Landlord has completed all of the improvements in
and to the Premises to be performed by Landlord.

3.   TERM.

     a.   Term. The term of this Lease (the "Term") shall commence on October 6,
          ----
2000 (the "Commencement Date") and shall expire on the last day of the seventh
(7th) Lease Year (as hereinafter defined) (the "Lease Expiration Date"), unless
such term is otherwise extended or terminated in accordance with the terms
hereof. As used herein, the term "Lease Year" means (a) each twelve (12)-month
period commencing on the Commencement Date, except that if the Commencement Date
does not occur on the first day of a calendar month, the first Lease Year shall
commence on the Commencement Date and terminate on the last day of the twelfth
(12th) full calendar month after the Commencement Date, and (b) each successive
period of twelve (12) calendar months thereafter during the Term. Reference is
made to the form of Declaration of Commencement Date (the "Declaration")
attached hereto as Exhibit C. After the Commencement Date Landlord shall
complete the Declaration and deliver the completed Declaration to Tenant. Within
five (5) days after Tenant receives the completed Declaration from Landlord,
Tenant shall execute and return the Declaration to Landlord to confirm the
Commencement Date, the Term and the actual number of rentable square feet in the
Premises. Failure to execute the Declaration shall not affect the commencement
or expiration of the Term.

     b.   Delay. In the event Landlord is delayed in delivering the Premises to
          -----
Tenant for any reason, Landlord shall not be liable to Tenant for any damages,
and Tenant shall not be released from its obligation to accept possession of the
Premises from Landlord. Tenant hereby acknowledges and agrees that Landlords
obligation to deliver the Premises to Tenant is contingent upon the execution
and delivery by SE Technologies (hereinafter defined) of that certain
Termination of Lease Agreement between Landlord and Current Tenant relating to
the Premises (the "Termination Agreement") and the surrender of the Premises by
Current Tenant to Landlord. As used herein the term "Current Tenant" shall mean
SE Technologies, Inc. ("SE Technologies"), and any tenant, subtenant, assignee
or other occupant claiming through or under SE Technologies. In the event that
SE Technologies fails to execute the Termination Agreement and/or the Current
Tenant fails to vacate the Premises (the "Lease Contingencies") by October 1,
2000, the Commencement Date shall be delayed until the date Landlord satisfies
the Lease Contingencies and delivers the Premises to Tenant. Landlord shall use
reasonable efforts to obtain possession of the Premises from the Current tenant
and deliver same to Tenant. Notwithstanding the foregoing, in the event that
Landlord fails to satisfy the Lease Contingencies and deliver possession of the
Premises to Tenant by December 31, 2000, Tenant shall have the right to
terminate this Lease upon thirty (30) days' written notice to Landlord;
provided, however, if Landlord delivers possession of the Premises to Tenant
within this thirty (30) day period, the Lease shall not terminate and shall
continue in full force and effect for the balance of the Term.

4. RENT. Beginning on the Commencement Date, Tenant covenants and agrees to pay
as Rent for the Premises the following amounts set forth in this Section 4 and
as otherwise provided in this Lease. "Additional Rent" shall mean such costs,
expenses, charges and other payments to be made by (or on behalf of) Tenant to
Landlord (or to a third party if required under this Lease), whether or not the
same be designated as such. "Rent" or "rent" shall mean all Annual Base Rent and
Additional Rent due hereunder.

     a.   Annual Base Rent.

          (i)   During each Lease Year, Tenant shall pay the annual base rent in
the amount set forth in Section 1.d hereof, subject, however, to annual
adjustments thereto as set forth in Section 4.a(ii), below (the "Annual Base
Rent"). Annual Base Rent shall be payable in equal monthly installments (the
"Monthly Base Rent") in advance.

          (ii)  Commencing on the first day of the second (2nd) Lease Year and
on the first day of each Lease Year thereafter during the Term, Annual Base Rent
shall be increased by an amount equal to three percent (3%) of the Annual Base
Rent in effect during the immediately-preceding Lease Year.

          (iii) In addition to the payment of Annual Base Rent, Tenant shall be
responsible for the payment of Tenant's Pro Rata Share (hereinafter defined) of
increases in Operating Expenses (hereinafter defined) and Tenant's Pro Rata
Share of increases in Real Estate Taxes (hereinafter defined) pursuant to
Section 4.b hereof.

          (iv)  All installments of Monthly Base Rent shall be payable in
advance, with the first installment thereof ("Monthly Base Rent") due and
payable upon execution of this Lease. If the Commencement Date shall be a day
other than the first day of a calendar month, (A) the Annual Base

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Rent for the first Lease Year shall be an amount equal to the sum of (x) the
amount of Monthly Base Rent for the partial month in which the Commencement Date
occurs, plus (y) the amount of the Annual Base Rent set forth in Section l.d,
above, and (B) Monthly Base Rent for such partial month shall be the prorated
amount of the Monthly Base Rent payable hereunder during the first Lease Year,
which proration shall be based upon the actual number of days of such partial
month. The prorated Monthly Base Rent for such partial month shall be payable on
the first day of the calendar month after the month in which the Commencement
Date occurs.

     b.   Additional Rent for Increases in Operating Expenses and Real Estate
          -------------------------------------------------------------------
Taxes.
-----

          (i)   If, in any calendar year during the Term, the amount of
Operating Expenses (hereinafter defined) exceeds the amount of Operating
Expenses in the Base Year (hereinafter defined), then Tenant shall pay to
Landlord, as Additional Rent, an amount which is the product of (A) the amount
of such increase in Operating Expenses, multiplied by (B) Tenant's Pro Rata
Share of Operating Expenses set forth in Section 1.f hereof. If, on any calendar
year during the Term, the amount of Real Estate Taxes (hereinafter defined)
exceeds the amount of Real Estate Taxes in the Base Year, then Tenant shall pay
to Landlord, as Additional Rent, an amount which is the product of (1) the
amount of such increase in Real Estate Taxes, multiplied by (2) Tenant's Pro
Rata Share of Real Estate Taxes set forth in Section 1.f hereof. As used herein,
"Tenant's Pro Rata Share" represents the ratio that the number of rentable
square feet in the Premises bears to the total number of rentable square feet of
office space in the Buildings. If the size of the Premises shall be increased or
decreased, or represents a greater or lesser pro rata share of the total number
of rentable square feet of the office space in the Buildings, Tenant's Pro Rata
Share of Operating Expenses and Tenant's Pro Rata Share of Real Estate Taxes
shall be adjusted accordingly. Tenant's Pro Rata Share of Operating Expenses and
Tenant's Pro Rata Share of Real Estate Taxes for any partial calendar year
during the Term shall be determined by multiplying the amount of Tenant's Pro
Rata Share of Operating Expenses and Tenant's Pro Rata Share of Real Estate
Taxes for the full calendar year by a fraction, the numerator of which is the
number of days during such calendar year falling within the Term and the
denominator of which is three hundred sixty (360). As used herein, the term
"Base Year" means calendar year 2001.

          (ii)  "Operating Expenses" shall mean any and all expenses, costs and
disbursements (but not specific costs billed to and paid by specific tenants) of
every kind and nature incurred by Landlord in connection with the onwership,
management, operation, maintenance, servicing and repair of the Buildings and
appurtenances thereto, including, without limitation, the garage and the common
areas thereof, and the Land, including, but not limited to, employees' wages,
salaries, welfare and pension benefits and other fringe benefits; payroll taxes;
the costs, including reasonable attorneys' fees, of appealing assessments of
Real Estates Taxes; telephone service; painting of common areas of the
Buildings; exterminating service; detection and security services; concierge
services; sewer rents and charges; premiums for fire and casualty, liability,
rent, workmen's compensation, sprinkler, water damage and other insurance;
repairs and maintenance; building supplies; uniforms and dry cleaning; snow
removal; the cost of obtaining and providing electricity, water and other public
utilities to all areas of the Buildings; trash removal; janitorial and cleaning
supplies; and janitorial and cleaning services; window cleaning; service
contracts for the maintenance of elevators, boilers, HVAC and other mechanical,
plumbing and electrical equipment; fees for all licenses and permits required
for the ownership and operation of the Project Land and the Buildings; business
license fees and taxes, including those based on Landlord's rental income from
the Buildings; sales and use taxes payable in connection with tangible personal
property and services purchased for the management, operation, maintenance,
repair, cleaning, safety and administration of the Project Land and the
Buildings; legal fees; accounting fees relating to the determination of
Operating Expenses and the tenants' share thereof and the preparation of
statements required by tenant's leases; management fees, whether or not paid to
any person having an interest in or under common ownership with Landlord;
purchase and installation of indoor plants in the Common Areas; and landscaping
maintenance and the purchase and replacement of landscaping services, plants and
shrubbery. If Landlord makes an expenditure for a capital improvement to the
Project Land (or any portion thereof) or the Buildings by installing energy
conservation or labor-saving devices to reduce Operating Expenses, or to comply
with any law, ordinance or regulation pertaining to the Land or the Buildings
(each, a "Permitted Capital Expenditure"), and if, under generally accepted
accounting principles, such expenditure is not a current expense, then the cost
thereof shall be amortized over a period equal to the useful life of such
improvement, determined in accordance with generally accepted accounting
principles, and the amortized costs allocated to each calendar year during the
Term, together with an imputed interest amount calculated on the unamortized
portion thereof using an interest rate of eight percent (8%) per annum, shall be
treated as an Operating Expense. Notwithstanding the foregoing, "Operating
Expenses" shall not include (i) payments of principal or interest made by
Landlord under any deed of trust or mortgage secured by any of the Buildings or
all or any portion of the Project Land; (ii) leasing commissions incurred in
connection with leases to other tenants of the Buildings; (iii) tenant
improvement costs associated with the build out of any space in the Buildings
for other tenants; (iv) expenses for capital improvements made to the Building,
except for Permitted Capital Expenditures; (v) costs of repairs, restoration,
replacements or other work occasioned by fire, windstorm or other casualty to
the extent Landlord receives insurance proceeds; (vi) costs of repairs,
restoration, replacements or other work occasioned by the exercise of
governmental authorities of the right of eminent domain, whether such taking be
total or partial; (vii) depreciation of the Building; (viii) costs, fines,
interest penalties, legal fees or costs of litigation incured due to the late
payment of taxes or utility bills by Landlord; (ix) income taxes, franchise
taxes or other similar taxes imposed on or measured by the net income of
Landlord from the operation of the Premises; (x) legal fees and other costs
(including

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prepayment of any indebtedness) incurred in connection with any
mortgaging, financing, refinancing, sale, change of ownership or entering into
or extending or modifying any financing, ground lease or any other lease or
sublease to, or assumed by, directly or indirectly, Landlord, Landlord's agents
or Landlord's affiliates; (xi) the costs of goods and services provided by
Landlord's affiliates to the Building to the extent that such costs exceed
reasonable and customary charges for such goods or services in the Washington,
D.C. metropolitan area; (xii) acquisition or leasing costs of sculpture,
paintings or other objects of art; (xiii) costs and expenses (including court
costs, attorneys' fees and disbursements) related to or in connection with
disputes with any holder of a mortgage or by or among any persons having an
interest in the Landlord or the Building; (xiv) any cost incurred in connection
with the investigation or remediation of any Hazardous Materials (hereinafter
defined) (A) located in, on, under or about the Building or the Land as of the
Commencement Date, or (B) stored, used or released by Landlord, its employees or
agents in the Building or the Land after the Commencement Date; (xv) all costs
and expenses (including services and utilities) paid directly by Tenant; (xvi)
Real Estate Taxes or any taxes expressly excluded from the definition of Real
Estate Taxes; (xvii) costs and expenses incurred by Landlord in connection with
the maintenance of the legal entity or entities which constitute Landlord (as
opposed to operation of the Building); (xviii) charitable or political
contributions; (xix) costs of compliance with any laws (including without
limitation laws governing fire, life safety and disabilities) applicable to the
Building (excluding the Premises and other tenant space therein) to the extent a
violation of such law existed on the Commencement Date; and (xx) costs of any
items for which Landlord is reimbursed.

          (iii) "Real Estate Taxes" shall mean all taxes, assessments and
governmental charges (including without limitation all real estate taxes, gross
revenue and receipts taxes' and any other licensing charges in the nature of a
tax on the operation of the Buildings, including without limitation the Fairfax
County Business License Tax), whether federal, state, county or municipal, and
whether they be by taxing districts or authorities presently taxing the
Buildings or by others, subsequently created or otherwise, and any other taxes
and assessments attributable to the Project Land (or any portion thereof) and
the Buildings or their operation whether or not directly paid by Landlord,
excluding, however, federal and state taxes on income from the Buildings. It is
agreed that Tenant will be responsible for all taxes on its personal property
and on the value of the Tenant Improvements. Landlord shall have the right to
pay any special assessment by installments, and in such event Real Estate Taxes
shall include such installments and interest paid on the unpaid balance of the
assessment.

          (iv)  If at any time during the Base Year, or during any subsequent
calendar year ("Subsequent Year"), less than ninety-five percent (95%) of the
total rentable square feet of office space in the Buildings is occupied by
tenants, the amount of Operating Expenses for the Base Year, or for any such
Subsequent Year, as the case may be, shall be deemed to be the amount of
Operating Expenses as reasonably estimated by Landlord's certified public
accountant that would have been incurred if the percentage of occupancy of the
Buildings during the Base Year or any such Subsequent Year was ninety-five
percent (95%). If at any time during any calendar year, any part of the
Buildings is leased to a tenant (hereinafter referred to as a "Special Tenant")
who, in accordance with the terms of its lease, provides its own cleaning and
janitorial services or other services or is not otherwise required to pay a
share of Operating Expenses in accordance with the methodology set forth in this
Section 4.b, Operating Expenses for such calendar year shall be increased by the
additional costs for cleaning and janitorial services and such other applicable
expenses as reasonably estimated by Landlord that would have been incurred by
Landlord if Landlord had furnished and paid for cleaning and janitorial services
and such other services for the space occupied by the Special Tenant, or if
Landlord had included such costs in "operating expenses" as defined in the
Special Tenant's lease.

          (v)   During the month of December, 2001 and thereafter during the
month of December of each Lease Year, Landlord shall use reasonable efforts to
furnish to Tenant a statement of Landlord's estimate of the Operating Cost Pass-
Throughs (hereinafter defined) and Real Estate Tax Pass-Throughs (hereinafter
defined) for the next calendar year. "Operating Cost Pass-Throughs" shall be an
amount equal to the difference between Operating Expenses incurred during any
Subsequent Year during the Term, and Operating Expenses incurred in the Base
Year. "Real Estate Tax Pass-Throughs" shall be an amount equal to the difference
between Real Estate Taxes incurred during any Subsequent Year during the Term,
and Real Estate Taxes incurred in the Base Year. Such statement shall show the
amount of Operating Cost Pass-Throughs, if any, and the amount of Real Estate
Tax Pass-Throughs, if any, payable by Tenant for such Subsequent Year pursuant
to this Section 4.b on the basis of Landlord's estimate. Commencing on January
1, 2002, and continuing on each monthly rent payment date thereafter until
further adjustment pursuant to this Section 4.b(v), Tenant shall pay to Landlord
one-twelfth (l/12) of the amount of said estimated Operating Cost Pass-Throughs
and estimated Real Estate Tax Pass-Throughs. Within one hundred twenty (120)
days after the expiration of each calendar year during the Term, Landlord shall
furnish to Tenant a statement (the "Expense Statement") showing the actual
Operating Expenses and Real Estate Taxes for such calendar year. The Expense
Statement shall be conclusive and binding on Tenant, unless objected to in
writing by Tenant within one hundred twenty (120) days following Tenant's
receipt thereof. In case of an underpayment, Tenant shall, within thirty (30)
days after the receipt of such statement, pay to Landlord an amount equal to
such underpayment. In case of an overpayment, Landlord shall credit the next
monthly rental payment by Tenant with an amount equal to such overpayment.
Additionally, if this Lease shall have expired, Landlord shall apply such excess
against any sums due from Tenant to Landlord and shall refund any remainder to
Tenant within one hundred and twenty (120) days after the expiration of the
Term, or as soon thereafter as possible.

          (vi)  If Tenant objects to any Expense Statement delivered by
Landlord, Tenant shall deliver to Landlord, within one hundred twenty (120) days
of Tenant's receipt of an Expense Statement, a

                                       4
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written notice contesting such Expense Statement. If, within ninety (90) days
after Landlord's receipt of Tenants written notice, Landlord and Tenant are
unable to resolve Tenant's objections to the Expense Statement set forth in
Tenant's notice, then not later than thirty (30) days after the expiration of
such ninety (90)-day period, Tenant shall deliver to Landlord a written notice
(the "Audit Notice") that Tenant wishes to employ (on an hourly rate, and not a
contingency fee, basis) an independent certified public accounting firm
reasonably acceptable to Landlord, to inspect and audit Landlord's books and
records in order to confirm the accuracy of the Expense Statement. In the event
that Tenant retains an accounting firm approved by Landlord to examine Landlords
books and records in order to confirm the accuracy of the Expense Statement. In
the event that Tenant retains an accounting firm approved by Landlord to examine
Landlord's books and records as set forth herein, Tenant shall deliver to
Landlord a confidentiality and nondisclosure agreement reasonably satisfactory
to Landlord executed by Tenant and such accounting firm and provide Landlord not
less than fifteen (15) days' notice of the date(s) on which the accounting firm
desires to examine Landlord's books and records at the Building during regular
business hours; provided, however, that such date shall be between thirty (30)
and one hundred twenty (120) days after Tenant delivers to Landlord the Audit
Notice. Landlord agrees to cooperate with Tenant in any such inspection. If the
results of such audit demonstrate that Landlord overcharged Tenant for Operating
Cost Pass-Throughs or Real Estate Tax Pass-Throughs, Landlord shall refund the
overpayment to Tenant within thirty (30) days after the results of such audit
are disclosed to Landlord and Tenant. If the results of the audit demonstrate
that Tenant underpaid Operating Cost Pass-Throughs or Real Estate Tax Pass-
Throughs, Tenant shall pay Landlord such underpayment within thirty (30) days
after demand. If, on account of any demonstrated errors in the Expense Statement
under audit, Tenant is entitled to a refund of Operating Expense Pass-Throughs
and Real Estate Tax Pass-Throughs for the calendar year under audit because such
Expense Statement overstated by more than five percent (5%) the aggregate amount
of Operating Expenses and Real Estate Taxes for the applicable calendar year,
then Landlord shall promptly reimburse Tenant its reasonable out-of-pocket costs
and expenses incurred in such audit, not to exceed $3,500.00, however. Tenant's
delivery of an Audit Notice to Landlord shall not entitle Tenant to pay to
Landlord less than the full amount of Operating Cost Pass-Throughs and Real
Estate Tax Pass-Throughs claimed by Landlord to be owing by Tenant. The audit
rights pursuant to this Section 4b(vii) shall (A) not transfer or apply to, or
be exercised by, any subtenant or any other person or entity other than the
then-current "Tenant" hereunder; and (B) be exercisable by Tenant only with
respect to the calendar year for which Landlord has delivered the Expense
Statement.

          (vii)  Tenant's obligation to pay Operating Cost Pass-Throughs and
Real Estate Tax Pass-Throughs pursuant to the provisions of this Section 4.b
shall survive the expiration or other termination of this Lease with respect to
any period during the Term hereof and with respect to any holdover period of
occupancy following the expiration of the Term.

          (viii) Notwithstanding anything contained in this Section 4.b to the
contrary, in the event that Landlord sells one or more of the Buildings at any
time in the future, Landlord reserves the right to calculate Operating Cost
Pass-Throughs and Real Estate Tax Pass-Throughs on the basis of the Operating
Expenses and Real Estate Taxes incurred in connection with the remaining
Buildings owned by Landlord, in which event (A) Tenant's Pro Rata Share of
Operating Expenses and Tenant's Pro Rata Share of Real Estate Taxes will be
increased accordingly; and (B) Operating Expenses and Real Estate Taxes for the
Base Year hereunder shall be decreased accordingly; provided, however that, if,
after any such sale, Landlord calculates Operating Cost Pass-Throughs and Real
Estate Tax Pass-Throughs on the basis of the remaining Buildings, Tenant's Pro
Rata Share of increases in Operating Costs and Real Estate Taxes for succeeding
calendar years shall not increase significantly solely because of the change
in methodology in calculating such costs.

     c.   Payment of Rent. All rent shall be paid in lawful money of the United
          ---------------
States of America without deduction, diminution, set-off, counterclaim or prior
notice or demand, at the office of Landlord as provided in Section 1.g hereof or
at such other place as Landlord may hereafter designate in writing, on the first
day of every calendar month during the Term. All such payments shall be made by
good checks payable to Landlord or such other person, firm or corporation as
Landlord may hereafter designate in writing. No payment by Tenant or receipt and
acceptance by Landlord of a lesser amount than the Monthly Base Rent or
Additional Rent shall be deemed to be other than part payment of the full amount
then due and payable; nor shall any endorsement or statement on any check or any
letter accompanying any check, payment of Rent or other payment, be deemed an
accord and satisfaction; and Landlord may accept, but is not obligated to
accept, such part payment without prejudice to Landlord's right to recover the
balance due and payable or to pursue any other remedy provided in this Lease or
by law. If Landlord shall at any time or times accept Rent after it becomes due
and payable, such acceptance shall not excuse a subsequent delay or constitute a
waiver of Landlord's rights hereunder. If any amount of Rent required to be paid
by Tenant to Landlord under the terms of this Lease is not paid within five (5)
business days after written notice of such payment, then in addition to paying
the amount of Rent then due, Tenant shall pay to Landlord a late charge (the
"Late Charge") equal to five percent (5%) of the amount of Rent then required to
be paid. Payment of such Late Charge will not excuse the untimely payment of
Rent. In the event Tenant makes any payment of Rent by check and said check is
returned by the bank unpaid, Tenant shall pay to Landlord the sum of One Hundred
Dollars ($100.00) to cover the costs and expenses of processing the returned
check, in addition to the Rent payment and any other charges provided for
herein. Any Late Charge and other amounts charged hereunder shall constitute
Additional Rent.

     d.   Separate Metering and Rent Reduction. Landlord may elect to
          ------------------------------------
discontinue the distribution or furnishing of electricity and/or water to the
Premises if such services may feasibly be furnished directly to Tenant by the
utility company supplying same. In the event of any such election by Landlord:
(i) Landlord agrees to give reasonable advance notice of such discontinuance to
Tenant; (ii)

                                       5
<PAGE>

Landlord agrees to permit Tenant to receive electricity and/or water directly
from the utilities supplying such service to the Building and to permit the
existing feeders, risers, wiring, pipes and other facilities serving the
Premises to be used by Tenant or such purpose to the extent they are suitable
and safely capable of carrying Tenant's requirements; (ii ) Landlord agrees to
pay such charges and costs, if any, as such public utility may impose in
connection with the installation of Tenant's meters; and (iv) the amount of
Additional Rent payable in respect to the Operating Expenses shall be decreased
appropriately to reflect such discontinuance. This Lease sha11 remain in full
force and effect and such discontinuance shall not constitute an actual or
constructive eviction, in whole or in part, or relieve Tenant from any of its
obligations under this Lease.

5.   SECURITY DEPOSIT.

     a.   Landlord acknowledges receipt from Tenant of a security deposit in
the amount set forth in Section 1.h hereof (the "Security Deposit") to be held
by Landlord during the Term as collateral security (and not prepaid rent), for
the payment of Monthly Base Rent and Additional Rent and for the faithful
performance by Tenant of all other covenants, conditions and agreements of
this Lease. Landlord shall not be obligated to hold the Security Deposit in a
separate account. The Security Deposit shall not earn interest. If any sum
payable by Tenant to Landlord shall be overdue and unpaid, or if Landlord makes
any payments on behalf of Tenant, or if Tenant fails to perform any of the
terms of this Lease, then Landlord, at its option and without prejudice to any
other remedy which Landlord may have, may apply all or part of the Security
Deposit to compensate Landlord for the payment of Monthly Base Rent or
Additional Rent, or any loss or damage sustained by Landlord. Tenant shall
restore the Security Deposit to the original sum deposited upon demand. Provided
that Tenant shall have made all payments and performed all covenants and
agreements of this Lease, the Security Deposit shall be repaid to Tenant within
sixty (60) days after the expiration of this Lease or the vacation of the
Premises by Tenant, whichever is later or as soon thereafter as possible.

     b.   In lieu of the cash Security Deposit under Section 5.a above, Tenant
may deliver to Landlord, on or before the Commencement Date, an unconditional
and irrevocable letter of credit reasonably acceptable to Landlord issued by the
Bank (hereinafter defined) in the face amount of One Hundred Twenty Eight
Thousand Dollars ($128,000.00) (the "Letter of Credit"), as a security deposit
to be held by Landlord until applied or disposed of in accordance with the
provisions of this Section 5. Tenant may replace a cash Security Deposit with a
Letter of Credit at any time during the Term upon prior written notice to
Landlord. In the event of such replacement, Landlord shall return the cash
Security Deposit promptly after the issuance of the Letter of Credit. As used
herein, the term "Security Deposit" shall mean, collectively, the cash Security
Deposit and the Letter of Credit. As used herein, the term "Bank" shall mean
either: (i) Wells Fargo Bank; or (ii) a federally-insured banking institution
reasonably acceptable to Landlord, having offices in the Washington, D.C.
metropolitan area, and having total assets of at least Three Billion Dollars
($3,000,000,000) and a Standard & Poor's commercial paper rating of at least A-
1. If the Letter of Credit (or any replacement thereof) is issued for an
effective period of time less than the remaining Term of this Lease (or any
renewal thereof), Tenant shall from time to time, and not later than thirty (30)
days prior to the expiration of the Letter of Credit, replace each such expiring
Letter of Credit with a new Letter of Credit in the same amount and upon the
same terms. The Letter of Credit (and any replacement thereof) may be drawn upon
by Landlord under the terms and conditions as provided in this Section 5.
Failure of Tenant to renew the Letter of Credit at least thirty (30) days prior
to its expiration shall constitute an Event of Default under this Lease and
shall entitle Landlord, in addition to the other remedies contained in this
Lease, to draw upon the Letter of Credit.

     c.   Landlord (or the beneficiary under the Letter of Credit, if such
beneficiary is not Landlord) shall have the right to draw upon the Letter of
Credit in any of the following circumstances (in addition to any other right to
draw on the Letter of Credit that is set forth in this Section 5): (i) if the
total assets of the Bank are at anytime less than Three Billion Dollars
($3,000,000,000), or the Bank has a Standard & Poor's commercial paper rating of
less than A. 1 (provided if at anytime the current Standard & Poor's commercial
paper rating system is no longer in existence, a comparable rating of a
comparable commercial paper rating system from a comparable company shall be
selected by Landlord, in its reasonable discretion, for purposes of this Section
5) and Tenant fails to deliver to Landlord a replacement Letter of Credit
complying with the terms of this Lease within thirty (30) days of request
therefor from Landlord, (ii) if the credit rating of the Bank is downgraded from
the credit rating of such issuer at the time of the issuance of the Letter of
Credit, the Bank shall enter into any supervisory agreement with any
governmental authority, or the Bank shall fail to meet any capital requirements
imposed by applicable law, and Tenant fails to deliver to Landlord (or the
beneficiary under the Letter of Credit, if such beneficiary is not Landlord) a
replacement Letter of Credit complying with the terms of this Lease within
thirty (30) days of request from Landlord, (iii) if Tenant fails to provide
Landlord with any renewal or replacement Letter of Credit complying with the
terms of this Lease at least sixty (60) days prior to expiration of the then-
current Letter of Credit where the Bank has advised Landlord of its intention
not to renew the Letter of Credit, (iv) if Tenant fails to provide Landlord with
any renewal or replacement Letter of Credit complying with the terms of this
Lease at least sixty (60) days prior to the final expiration date (i.e., the
date that, by the terms of the Letter of Credit, the Letter of Credit expires
and is either not subject to any automatic renewal or extension of the
conditions to such automatic renewal or extension have not then been satisfied)
of the then-current Letter of Credit if such Letter of Credit expires prior to
the date that is thirty (30) days after the end of the Term, or (v) any
voluntary in involuntary proceedings are filed by or against Tenant or any
Guarantor of this Lease under any bankruptcy, insolvency or similar laws. In the
event the Letter of Credit is drawn upon due solely to the circumstances
described in the foregoing clauses (i), (ii), (iii), (iv) or (v), the amount
drawn shall be held by Landlord as an additional

                                       6
<PAGE>

Cash Security Deposit in accordance with the terms of this Section 5, and shall
be otherwise retained, expended or disbursed by Landlord for any amounts or sums
due under this Lease to which the proceeds of the Letter of Credit could have
been applied pursuant to this Lease, and Tenant shall be liable to Landlord for
restoration, in cash or Letter of Credit complying with the terms of this Lease,
of any amount so expended to the same extent as set forth ii this Section 5.

     d.   In the event of the sale or transfer of Landlord's interest in the
Building, Landlord shall have the right to transfer the Security Deposit to the
purchaser or assignee, in which event Tenant shall look only to the new landlord
for the return of the Security Deposit, and Landlord shall thereupon be released
from all liability to Tenant for the return of the Security Deposit. Tenant
hereby agrees not to look to the mortgagee, as mortgagee, mortgagee in
possession, or successor in title to the property, for accountability for any
security deposit required by Landlord hereunder, unless said sums have actually
been received by said mortgagee as security for the Tenant's performance of this
Lease. In the event of any permitted assignment of Tenant's interest in this
Lease, the Security Deposit may, at Landlord's sole option, be held by Landlord
as a deposit made by the assignee, and Landlord shall have no further liability
to any prior Tenant with respect to the return of the Security Deposit.

     e.   Notwithstanding anything to the contrary set forth herein, in the
event that an Event of Default (hereinafter defined) is not then occurring, on
the first day of each of the third (3/rd/), fourth (4/th/), fifth (5/th/), and
sixth (6/th/) Lease Years during the Term, the Letter of Credit shall be reduced
by Twenty-Five Thousand Six Hundred Dollars ($25,600.00); provided, however, in
no event shall the Letter of Credit ever be reduced below Twenty-Five Thousand
Six Hundred Dollars ($25,600.00) at any time during the Term.

6.   USE.

     a.   Tenant shall use and occupy the Premises only for general office use,
and for no other purposes. Tenant shall not use the Premises or allow the
Premises to be used for any other purpose without the prior written consent of
Landlord. Tenant, at Tenant's expense, shall comply with all laws, rules,
orders, ordinances, directions, regulation, and requirements of federal, state,
county, and municipal authorities, now in force or which may hereafter be in
force, which shall impose any duty upon Landlord or Tenant with respect to the
use, occupation or alteration of the Premises, or the conduct of Tenant's
business therein, including, without limitation, the Americans with Disabilities
Act and all applicable zoning, recycling and Environmental Laws (hereinafter
defined). Tenant hereby agrees to indemnify and hold harmless Landlord and its
agents, officers, directors and employees from and against any cost, damage,
claim, liability and expense (including attorneys' fees) arising out of claims
or suits brought by third parties against Landlord, its agents, officers,
directors and employees alleging or relating to the failure of the Premises to
comply with the terms of the Americans with Disabilities Act or any other law
or regulation applicable to the Premises and/or its occupancy by Tenant. Tenant
shall not use or permit the Premises or any part thereof to be used in any
manner that constitutes waste, nuisance or unreasonable disturbances to other
tenants of the Building or for any disorderly, unlawful or hazardous purpose and
will not store or maintain therein any hazardous, toxic or highly combustible
items other than usual and customary office supplies intended for Tenant's use
and in such event, only in such amounts as permitted by applicable law. Tenant
covenants not to change Tenant's use of the Premises without the prior written
approval of Landlord.

     b.   Tenant shall not put the Premises to any use, the effect of which use
is reasonably likely to cause cancellation of any insurance covering the
Premises or the Building, or an increase in the premium rates for such
insurance. In the event that Tenant performs or commits any act, the effect of
which is to raise the premium rates for such insurance, Tenant shall pay
Landlord the amount of the additional premium, as Additional Rent payable by
Tenant upon demand therefor by Landlord. The Premises shall not be used for any
illegal purpose or in violation of any regulation of any governmental body or
the regulations or directives of Landlord's insurance carriers, or in any manner
to interfere with the quiet enjoyment of any other tenant of the Building.
Tenant will not install or operate in the Premises any electrical or other
equipment, other than such equipment as is commonly used in modern offices
(specifically excluding mainframe computers), without first obtaining the prior
written consent of Landlord, who may condition such consent upon the payment by
Tenant of Additional Rent in compensation for excess consumption of water and/or
electricity excess wiring and other similar requirements, and any changes,
replacements or additions to any base building system, as may be occasioned by
the operation of said equipment or machinery. In the event that Tenant wishes to
install a coffee maker or other similar device in the Premises which shall be
connected to the Building's main water line, then in such event Tenant shall
install copper (rather than plastic) lines between all such appliances and the
Building's main water line.

     c.   Subject to Landlords obligations under Section 9.e, below, Tenant
agrees to maintain the Premises, and the Tenant Improvements therein, in good
order, repair and condition during the Term at Tenant's sole cost and expense,
and it will, at the expiration or other termination of the Term, surrender and
deliver the same and all keys, locks and other fixtures connected therewith
(except only Tenant's personal property) in good order, repair and condition,
as the same shall be at the Commencement Date, except as repaired, rebuilt,
restored, altered or added to pursuant to this Lease, and except for ordinary
wear and tear. Landlord shall have no obligation to Tenant to make any repairs
in or to the Premises or the Tenant Improvements, except as expressly provided
in Section 11.a, below. Any and all damage or injury to the Premises
(including, but not limited to, the Tenant Improvements), the Building or the
Land caused by Tenant, or by any employee, agent, contractor, assignee,
subtenant, invitee or customer of

                                       7
<PAGE>

Tenant shall be promptly reported to Landlord and, subject to the provisions of
Section 12.d, below, repaired by Tenant at Tenant's sole cost; provided,
however, that Landlord shall have the option of repairing any such damage, in
which case Tenant shall reimburse Landlord for all costs incurred by Landlord in
respect thereof as Additional Rent within fifteen (15) days after Tenant
receives Landlords notice of such costs.

     d.   Tenant shall not place a load upon the floor of the Premises
exceeding the designated floor load capacity of the Building without Landlord's
prior written consent. Business machines, mechanical equipment and materials
belonging to Tenant which cause vibration, noise, cold, heat or fumes that may
be transmitted to the Building or to any other leased space therein to such a
degree as to be objectionable to Landlord or to any other Tenant in the Building
shall be placed, maintained, isolated, stored and/or vented by Tenant at its
sole expense so as to absorb and prevent such vibration, noise, cold, heat or
fumes.

7.   ASSIGNMENT AND SUBLETTING.

     a.   Tenant shall not, without the prior written consent of Landlord (which
consent may be withheld by Landlord in its sole discretion except as expressly
set forth below) in each instance: (i) assign or otherwise transfer this Lease
or any of its rights hereunder, (ii) sublet the Premises or any part thereof,
or permit the use of the Premises or any part thereof by any persons other than
Tenant or its employees, agent and invitees, or (iii) permit the assignment or
other transfer of this Lease or any of Tenant's rights hereunder by operation of
law. Landlord's consent to a proposed sublease shall not be unreasonably
withheld, conditioned or delayed, provided Landlord reasonably determines that
the proposed subtenant (A) is of a type and quality consistent with the first-
class nature of the Building, (B) has the financial capacity and credit
worthiness to undertake and perform the obligations of this Lease or the
sublease, (C) is not a party by whom any suit or action could be defended on the
ground of sovereign immunity and (D) will not impose any additional material
burden upon Landlord in the operation of the Building (to an extent greater than
the burden to which Landlord would have been had Tenant continued to use such
part of the Premises). In addition, the following conditions must be satisfied
at the time Tenant requests Landlord's consent to an assignment or sublease:

          (i)    No Event of Default exists and no event has occurred which,
with notice and/or the passage of time, would constitute an Event of Default if
not cured within the time, including any applicable grace period, specified
herein;

          (ii)   Landlord receives at least thirty (30) days' prior written
notice of Tenant's intention to assign this Lease or sublet any portion of the
Premises;

          (iii)  The proposed use of the Premises is identical to that permitted
under the terms of this Lease and will not violate any other agreement affecting
the Premises or the Building;

          (iv)   Tenant submits to Landlord whatever information Landlord
reasonably requests in order to permit Landlord to make a judgment on the
proposed subletting or assignment, including, without limitation, the name,
business experience, financial history, net worth and business references of the
proposed assignee or subtenant (and each of its principals), an in-depth
description of the transaction, and the consideration delivered to Tenant for
the assignment or sublease;

          (v)    The proposed assignee or subtenant is not a tenant of the
Building (unless Landlord does not then possess, or will not shortly thereafter
possess, for Lease to such prospective subtenant or assignee, comparably sized
space in the Building);

          (vi)   Tenant has not subleased any portion of the Premises within the
prior six (6) months; and

          (vii)  Tenant has not previously sublet more than thirty-five percent
(35%) of the rentable square feet of the Premises.

All proposed subleases and assignments shall be on Landlord's approved form of
sublease or assignment, whichever is applicable; or shall be in form and
substance satisfactory to Landlord in its sole discretion and shall contain,
inter alia, the following provisions: (x) any such assignment or sublease shall
include an assumption by the assignee or subtenant, from and after the effective
date of such assignment or sublease, of the performance and observance of the
covenants and conditions to be performed and observed on the part of Tenant as
contained in this Lease, and (y) any such sublease or assignment shall specify
that this Lease or sublease shall not be further assigned nor the Premises
further sublet and shall specify that the term of such sublease shall not extend
beyond one (1) day prior to the expiration of this Lease. The consent by
Landlord to any assignment, transfer or subletting to any person or entity shall
not be construed as a waiver or release of Tenant from any provision of this
Lease, unless expressly agreed to in writing by Landlord (it being understood
that Tenant shall remain primarily liable as a principal and not as a guarantor
or surety), nor shall the collection or acceptance of rent from any such
assignee, transferee, subtenant or occupant constitute a waiver or release of
Tenant from any such provision, No consent by Landlord to any such assignment,
transfer or subletting in any one instance shall constitute a waiver of the
necessity for such consent in a subsequent instance.

                                       8
<PAGE>

     b.   In the event that Tenant assigns or sublets all or any portion of the
Premises, Tenant shall pay to Landlord as Additional Rent fifty percent (50%) of
the difference between (i) all sums paid to Tenant or its agent by or on behalf
of such assignee or subtenant under the assignment or sublease, less the
reasonable costs incurred by Tenant (including brokerage costs, tenant
improvement costs and reasonable attorneys' fees) in effecting such sublease or
assignment (which costs, in the case of a sublease, shall be amortized on a
straightline basis over the term of such sublease), and (ii) the Annual Base
Rent and Additional Rent paid by Tenant under this Lease and attributable to
the portion of the Premises assigned or sublet.

     c.   For purposes of this Section 7, a transfer, conveyance, grant or
pledge, directly or indirectly, in one or more transactions, of an interest in
Tenant (whether stock, partnership interest or other form of ownership or
control, or the issuance of new interests) by which an aggregate of more than
forty-nine percent (49%) of the beneficial interest in Tenant shall be vested in
a party or parties who are not holders of such interest(s) as of the date
hereof) shall be deemed an assignment of this Lease; provided, however, that
this limitation shall not apply to any corporation, all of the outstanding
voting stock of which is listed on a national securities exchange as defined in
the Securities Exchange Act of 1934. The merger or consolidation of Tenant into
or with any other entity, the sale of all or substantially all of Tenant's
assets, or the dissolution of Tenant shall each be deemed to be an assignment
within the meaning of this Section 7.

     d.   Any assignment or subletting not in conformance with the terms of this
Lease shall be void ab initio and Landlord shall have the right to terminate
this Lease or to require that the Premises be surrendered to Landlord for the
balance of the Term (in the case of an assignment) or for the term of the
proposed sublease (in the case of a sublease)

     e.   Notwithstanding the foregoing, provided that no default is then
occurring hereunder, the assignment of the Lease to, or the subletting of the
Premises by, an Approved Tenant Affiliated (hereinafter defined) shall not
constitute an assignment or subletting requiring Landlord's prior approval;
provided however that Tenant shall give Landlord at least twenty (20) days'
prior written notice of such proposed assignment or subletting, along with
whatever information and/or documentation Landlord reasonably requests regarding
the Approved Tenant Affiliate, including without limitation proof that the
proposed Approved Tenant Affiliate is affiliated with, and controls, is
controlled by or is under common control with Tenant. As used herein, "Approved
Tenant Affiliate" means an entity related to or affiliated with Tenant that
controls (hereinafter defined), is controlled by or is under common control
with, Tenant. As used herein, the term "control" means ownership of more than
fifty percent (50%) of the voting stock, partnership interests or other
ownership interests in the entity in question, along with the right to make all
management decisions of the "controlled" entity).

     f.   Except for proposed assignments to, or subleases with, Approved
Tenant Affiliates, upon receipt of the notice referred to in Section 7.a(ii),
above, Landlord may, at its option, in lieu of approving or rejecting the
proposed assignment or subletting, exercise all or any of the following rights
by written notice to Tenant of its intent to do so within fifteen (15) business
days of receipt of Tenant's notice:

          (i)    with respect to a proposed assignment of this Lease, the right
to terminate this Lease on the effective date of proposed assignment as if it
were the Lease Expiration Date;

          (ii)   with respect to a proposed sublease of the entire Premises,
the right to terminate this Lease on the effective date of the sublease as if
it were the Lease Expiration Date;

          (iii)  with respect to a proposed sublease of less than the entire
Premises, the right to terminate this Lease as to the portion of the Premises
affected by such sublease on the effective date of the sublease, as if it were
the Lease Expiration Date, in which case Tenant shall execute and deliver to
Landlord an appropriate modification of this Lease, in form satisfactory to
Landlord in all respects within ten (10) days of Landlord's notice of partial
termination, which modification of this Lease shall provide that the number of
rentable square feet of the Premises shall be decreased by, and the Monthly Base
Rent and Additional Rent payable by Tenant hereunder shall be adjusted in
proportion to, the number of rentable square feet of the Premises affected by
such termination, as determined by Landlord; or

          (iv)   with respect to a proposed sublease for less than the balance
of the Term, the right to sublet the portion of the Premises from the Tenant
upon the same terms and conditions (including Annual Base Rent and Additional
Rent) set forth in this Lease for the term of the proposed sublease.

     g.   If Landlord exercises any of its options under Section 7.f, above,
Landlord may then lease (or sublease) the Premises or any portion thereof to
Tenant's proposed assignee or subtenant, as the case may be, without any
liability whatsoever to Tenant.

     h.   Upon any assignment of this Lease or sublease of all or a portion of
the Premises, any and all option rights, rights of first refusal, rights of
first negotiation, and expansion rights shall terminate, it being understood
that any and all such rights are personal to Tenant (and not to any assignee or
subtenant) and are not appurtenant to the Premises or this Lease. Further,
Tenant shall not have the right to exercise any such rights unless Tenant (and
not any assignee or subtenant of Tenant) shall be in occupancy of all of the
Premises at the time of the exercise of any such right. Tenant shall pay to
Landlord an administrative fee in the amount of Three Hundred Dollars ($300.00)
and shall reimburse Landlord for its reasonable attorneys' fees and other third
party expenses incurred in reviewing any

                                       9
<PAGE>

requested consent whether or not such consent is granted. Tenant shall not
collaterally assign, mortgage, pledge, hypothecate or otherwise encumber this
Lease or any of Tenant's rights hereunder without the prior written consent of
Landlord, which consent Landlord may withhold in its sole discretion.

     i.   Notwithstanding any such consent, the Tenant named herein will remain
jointly and severally liable for the performance of all covenants and
obligations contained in this Lease with each approved assignee or subtenant or
occupant, who shall automatically become liable for the obligations of Tenant
hereunder. Landlord shall be permitted to enforce the provisions of this Lease
directly against the Tenant named herein and/or against any assignee or
sublessee without proceeding in any way against any other person. Collection or
acceptance of Rent or Additional Rent from any such assignee, subtenant or
occupant shall not constitute a waiver or release of the Tenant named herein
from the terms of any covenant or obligation contained in this Lease, nor shall
such collection or acceptance in any way be construed to relieve the Tenant
named herein from obtaining the prior written consent of Landlord to such
assignment or subletting or any subsequent assignment or subletting.

8.   ALTERATIONS AND FIXTURES.

     a.   Tenant shall neither make nor allow any alterations, decorations,
replacements, changes additions or improvements (collectively referred to as
"Alterations") to the Premises or any part thereof that will or may affect the
structure of the Building, without the prior written consent of Landlord, which
may be withheld by Landlord in its sole discretion. Tenant shall not make or
allow any other kind of Alterations to the Premises or any part thereof without
the prior written consent of Landlord, which consent shall not be unreasonably
withheld, conditioned or delayed. All of such Alterations, structural or
otherwise, must conform to all rules and regulations established from time to
time by the Underwriters' Association of the jurisdiction in which the Building
is located, must be performed in a good and workmanlike manner, must comply
with all applicable building codes, laws and regulations (including, without
limitation, the Americans with Disabilities Act), shall not require any changes
to or modifications of any of the Building's mechanical, electrical, plumbing or
other systems and shall otherwise be constructed in strict accordance with the
terms and conditions of this Section 8. Notwithstanding the foregoing, Tenant
shall not have to obtain Landlord's prior approval of any Cosmetic Alterations
(hereinafter defined), provided, however, that Tenant shall provide Landlord
with at least fifteen (15) days prior notice of the undertaking of such Cosmetic
Alterations. As used herein, the term "Cosmetic Alterations" means painting,
wallpaper and other similar Cosmetic Alterations which do not require a building
permit to undertake and which cost in the aggregate less than Fifteen Thousand
Dollars ($15,000.00). Notwithstanding the foregoing, Landlord must approve in
its reasonable discretion all paint and carpet colors.

     b.   It is understood and agreed by Landlord and Tenant that any
Alterations undertaken in the Premises shall be constructed at Tenants sole
expense. The costs of Alterations shall include, without limitation, the cost of
engineering studies (if the Alterations will effect the base Building systems),
supplies, plans and permits. If requested by Landlord, Tenant shall provide to
Landlord satisfactory evidence of Tenant's ability to pay for such Alterations
(including, but not limited to, a payment or performance bond). No consent by
Landlord to any Alterations shall be deemed to be an agreement or consent by
Landlord to subject Landlord's interest in the Premises, the Building or the
Land to any mechanic's or materialman's liens which may bs filed in respect to
such Alterations made by or on behalf of Tenant. If Landlord gives its consent
as specified in Section 8.a, above, Landlord may impose as a condition to such
consent such requirements as Landlord may deem necessary or desirable
including, without limitation, the right to approve the plans and
specifications for any work, supervision of the work by Landlord or its agents
or by Landlords architect or contractor and the payment to Landlord or its
agents, architect or contractor of a construction supervision fee (equal to
three percent (3%) of the cost of the work) in connection therewith, the right
to require security for the full payment of any work and the right to impose
requirements as to the manner in which or the time or times at which work may
be performed. Landlord shall also have the right to approve in its reasonable
discretion the contractor or contractors who shall perform any Alterations,
repairs in, to or about the Premises and to post notices of non-responsibility
and similar notices, as appropriate.

     c.   Tenant shall keep the Premises free from any liens arising out of any
work performed on, or materials furnished to, the Premises, or arising from any
other obligation incurred by Tenant. If any mechanic's or materialmen's lien is
filed against the Premises, the Building and/or the Land for work claimed to
have been done for or materials claimed to have been furnished to Tenant, such
lien shall be discharged by Tenant within thirty (30) days thereafter, at
Tenant's sole cost and expense, by the payment thereof or by filing any bond
required by law. If Tenant shall fail to discharge any such mechanic's or
materialman's lien, Landlord may, at its option, discharge the same and treat
the cost thereof as Additional Rent payable with the installment of rent next
becoming due; it being expressly covenanted and agreed that such discharge by
Landlord shall not be deemed to waive or release the default of Tenant in not
discharging the same. Tenant shall indemnify and hold harmless Landlord, the
Premises and the Building from and against any and all expenses, liens, claims,
actions or damages to person or property in connection with any such lien or the
performance of such work or the furnishing of such materials. Tenant shall be
obligated to, and Landlord reserves the right to, post and maintain on the
Premises at any time such notices as shall in the reasonable judgment of
Landlord be necessary to protect Landlord against liability for all such liens
or actions.

     d.   Any Alterations of any kind to the Premises or any part thereof,
except Tenant's furniture and moveable trade fixtures, shall at once become part
of the realty and belong to Landlord and shall be

                                       10
<PAGE>

surrendered with the Premises, as a part thereof, at the end of the Term hereof;
provided, however, that Landlord may, by written notice to Tenant at least
thirty (30) days prior to the end of the Term, require Tenant to remove any
Removal Alterations (hereinafter defined) and to repair any damage to the
Premises caused by such removal, all at Tenant's sole expense. As used herein,
the term "Removal Alterations" shall mean any Alteration(s) (excluding Cosmetic
Alterations): (i) which Landlord, in a written notice delivered to Tenant
contemporaneously with Landlord's consideration of Tenant's request for
approval of such Alteration; indicates to Tenant must be removed by Tenant at
the end of the Term; or (ii) with respect to which Tenant did not inquire of
Landlord, contemporaneously with Tenant's request for approval of such
Alteration, whether or not such Alteration would have to be removed at the end
of the Term. Any article of personal property, including business and trade
fixtures, not attached to or built into the Premises, which were installed or
placed in the Premises by Tenant at its sole expense, shall be and remain the
property of the Tenant and may be removed by Tenant at any time during the Term
as long as Tenant is not in default hereunder and provided that Tenant repairs
any damage to the Premises or the Building caused by such removal.

9.   UTILITIES AND SERVICES.

     a.   Landlord shall furnish the following utilities and services to or for
the benefit of the Premises: electric current (for lighting and operation of
normal desk-type office machines); water; lavatory supplies; heat and air-
conditioning during the appropriate seasons of the year as reasonably required;
elevator service; and cleaning and char service (after 6:00 p.m. Monday through
Friday, excluding federal public holidays ("Holidays")). Central air
conditioning and heating shall be supplied to the Premises during Normal
Business Hours (hereinafter defined). At times other than the Normal Business
Hours, central air conditioning and heating shall be provided to Tenant upon at
least twenty-four (24) hours' prior notice from Tenant, and upon payment by
Tenant of the hourly charge established by Landlord for each hour (or a portion
thereof) of after-hours usage The current charge for such after-hours HVAC
service is $35.00 per hour. As used herein, the term "Normal Business Hours"
means Monday through Friday 8:00 a.m. to 6:00 p.m., Saturdays 8:00 a.m. to 1:30
p.m., excluding Holidays. In addition, Landlord may impose a reasonable
additional charge for any additional or unusual services required to be provided
by Landlord to Tenant because of the carelessness of Tenant, the nature of
Tenant's business or the removal of any refuse and rubbish from the Premises
except for discarded material placed in wastepaper baskets and left for emptying
as an incident to Tenant's normal cleaning of the Premises. In the event that
Landlord must temporarily suspend or curtail services because of accident and
repair, Landlord shall have no liability to Tenant for such suspension or
curtailment or due to any restrictions on use arising therefrom or relating
thereto, and Landlord shall proceed diligently to restore such service. No
interruption or malfunction of any such services shall constitute an actual or
constructive eviction or disturbance of Tenant's use and possession of the
Premises or of the Building or a breach by Landlord of any of its obligations
hereunder or render Landlord liable for damages or grant Tenant any right of
setoff or claim against Landlord or constitute a constructive or other eviction
of Tenant or, except as expressly set forth immediately below, entitle Tenant to
be relieved from any of Tenant's obligations hereunder (including the obligation
to pay rent). In the event of any such interruption, Landlord shall use
reasonable diligence to restore such services. Notwithstanding the foregoing, in
the event that (i) any utilities or essential services being provided to Tenant
hereunder are interrupted and such interruption renders the Premises
untenantable for use and occupancy by Tenant, or (ii) owing to fire or casualty
or other reasons not caused by, or within the control of, Tenant, Tenant is
denied total access to the Premises, and such interruption or denial of access
to the Premises continues for ten (10) consecutive business days, and Tenant in
fact ceases to use or occupy the Premises during the entirety of such period of
interruption or denial of access, then in such event Tenant shall be entitled to
an abatement of Annual Base Rent and Additional Rent beginning on the date on
which Tenant vacates the Premises and ending on the date on which such utility
or service or access to the Premises has been restored.

     b.   Tenant will not connect to electric current any apparatus or device
for the purpose of using electric current or water, except through existing
electrical outlets in the Premises or water pipes. If Tenant shall require water
or electricity materially in excess of that which would otherwise be furnished
or supplied for the intended use of the Premises, Tenant shall first secure the
written consent of Landlord for the use thereof, which consent Landlord may
refuse in its absolute discretion. Landlord may condition its consent upon the
requirement that a water meter or electric current meter be installed in the
Premises, so as to measure the amount of water and electric current consumed for
any such excess use. The cost of such meters and installation, maintenance and
repair thereof, the cost of any such excess utility use as shown by said meter,
the cost of any new or additional utility installations, including, without
limitation, wiring and plumbing, resulting from such excess utility use, and
the cost of any additional expenses incurred in keeping count of such excess
utility use shall be paid by Tenant promptly upon demand by Landlord or, if
Tenant is billed separately therefor, promptly upon receipt of a bill for same.
Whenever heat generating machines or equipment are used in the Premises which
affect the temperature otherwise maintained by the air conditioning system,
Landlord reserves the right to install supplementary air conditioning units in
the Premises and the cost thereof, including the cost of installation, operation
and maintenance thereof, shall be paid by Tenant to Landlord upon demand by
Landlord.

     c.   Tenant shall not install equipment of any kind or nature whatsoever
nor engage in any practice or use which will or may necessitate any changes,
replacements or additions to, or in the use of, the water system, heating
system, plumbing system, air conditioning system, electrical system, floor load
capacities, or other mechanical or structural system of the Premises or the
Building without first obtaining the prior written consent of Landlord, which
consent may be conditioned upon, but not limited to, Tenant first securing at
its expense additional Building capacity for said service. Tenant shall have the
right to

                                       11
<PAGE>

install and operate in the Premises personal computers and other electrically-
operated office equipment normally used in modern offices; provided, however,
Tenant shall be responsible for paying for any excess utility consumption
arising from any such change, replacement, use or addition, such payments to be
based on Landlord's reasonable estimate or, at Landlord's option, a submeter or
similar device to measure such usage (said device to be installed at Tenant's
expense). Additionally, in the event that Landlord reasonably determines that
Tenant's electrical consumption exceeds standard office use, Tenant shall pay
the amount of such excess electrical consumption, as reasonably determined by
Landlord, within thirty (30) days after demand therefor. Machines, equipment
and materials belonging to Tenant which cause vibration, noise, cold, heat,
fumes or odors that may be transmitted outside of the Premises to such a degree
as to be objectionable to Landlord in Landlord's sole opinion or to any other
tenant in the Building shall be treated by Tenant at its sole expense so as to
eliminate such objectionable condition, and shall not be allowed to operate
until such time as the objectionable condition is remedied to Landlord's
satisfaction.

     d.   Tenant shall comply, at its sole cost and expense, with all orders,
requirements and conditions now or hereafter imposed by any ordinances, laws,
orders and/or regulations (hereinafter collectively called "regulations") of any
governmental body having jurisdiction over the Premises or the Building, whether
required of Landlord or otherwise, regarding the collection, sorting, separation
and recycling of waste products, garbage, refuse and trash (hereinafter
collectively called "waste products") including, but not limited to, the
separation of such waste products into receptacles reasonably approved by
Landlord and the removal of such receptacles in accordance with any collection
schedules prescribed by such regulations. Landlord reserves the right (i) to
refuse to accept from Tenant any waste products that are not prepared for
collection in accordance with any such regulations, (ii) to require Tenant to
arrange for waste product collection at Tenant's sole cost and expense,
utilizing a contractor reasonably satisfactory to Landlord, and (iii) to require
Tenant to pay all costs, expenses, fines, penalties, or damages that may be
imposed on Landlord or Tenant by reason of Tenant's failure to comply with any
such regulations. Notwithstanding the foregoing, if Tenant is unable to comply
with Landlord's standard procedures regarding the internal collection, sorting,
separation and recycling of waste products, Landlord shall use reasonable
efforts to arrange for alternative procedures for Tenant, and Tenant shall pay
Landlord all additional costs incurred by Landlord with respect thereto.

     e.   Throughout the Term, Landlord shall be responsible for maintaining,
repairing and replacing, as necessary, and in a manner consistent with
comparable office buildings of similar age and location in the Herndon, Virginia
area: (i) the roof, exterior walls, floor slabs, foundations, exterior windows
and other structural elements of the Building; (ii) the HVAC, plumbing,
elevators, electrical, mechanical, fire and life safety and other base Building
systems serving the Premises; and (iii) the common areas of the Building and the
Land. Landlord shall also wash the exterior windows of the Building at least
twice during each full calendar year of the Term. All costs incurred by
Landlord in undertaking such work shall be included in Operating Expenses.

10.  RIGHTS OF LANDLORD.

     a.   Landlord reserves the right to: (i) change the name of the Buildings
without notice or liability to the Tenant; (ii) approve the design, location,
number, size and color of all signs or lettering on the Premises or visible from
the exterior of the Premises; (iii) have pass keys to the Premises; (iv) grant
to anyone the exclusive right to conduct any particular business or undertaking
in the Buildings; and (v) enter the Premises at any reasonable time upon
reasonable prior notice (or at any time without notice in the event of any
emergency) for inspections; to supply any service to be provided by Landlord
hereunder; to show the Premises to prospective purchasers or tenants; to post
notices of non-responsibility; to affix and display "For Rent" signs; and to
make repairs, alterations, additions or improvements to the Premises or the
Building.

     b.   Without limiting the generality of the provisions of Section lO.a,
above, Landlord shall have the right to remove, alter, improve, renovate or
rebuild the common areas of the Buildings (including, but not limited to, the
lobby, hallways and corridors thereof), and to install, repair, replace, alter,
improve or rebuild in the Premises, other tenants' premises and/or the common
areas of the Buildings (including the lobby, hallways and corridors thereof),
any mechanical, electrical, water, sprinkler, heating, air conditioning and
ventilating systems, at any time during the Term of this Lease. In connection
with making any such installations, repairs, replacements, alterations,
additions and improvements under the terms of this Section 10, Landlord shall
have the right to access through the Premises as well as the right to take into
and upon and through the Premises or any other part of the Building, all
materials that may be required to make any such repairs, replacements,
alterations, additions or improvements, as well as the right in the course of
such work to close entrances, doors, corridors, elevators or other Building
facilities or temporarily to cease the operations of any such facilities or to
take portions of the Premises reasonably necessary in connection with such work,
without being deemed or held guilty of an eviction of Tenant; provided however
that Landlord agrees to use all reasonable efforts not to interfere with or
interrupt Tenant's business operation in the Premises and all trade fixtures
and other equipment owned by Tenant and located in the Premises. Landlord shall
have the right to install, use and maintain pipes and conduits in and through
the Premises including, without limitation, telephone installations, provided
that they do not materially adversely affect Tenants access to or use of the
Premises.

     c.   INTENTIONALLY OMITTED.

                                       12
<PAGE>

     d.   Subject to the provisions of Section 12.d, below, except for injury,
loss or damage to Tenant resulting from Landlord's gross negligence or willful
misconduct, Landlord shall not be liable to Tenant for any expense, injury, loss
or damage resulting from its exercise of any rights under this Section 10, all
claims against Landlord for any and all such liability being hereby expressly
released by Tenant. Landlord shall not be liable for damages to Tenant's
property, business or person to Tenant by reason of interference with the
business of Tenant or inconvenience or annoyance to Tenant or the customers of
Tenant. The rent reserved herein shall not abate while Landlord's rights under
this Section 10 are exercised, and Tenant shall not be entitled to any set-off
or counterclaims for damages of any kind against Landlord by reason thereof, all
such claims being hereby expressly released by Tenant.

     e.   Landlord shall have the right to use any and all means which Landlord
may deem proper to open all of the doors in, upon and about the Premises,
excluding Tenant's vaults and safes, in any emergency in order to obtain entry
to the Premises. Any entry to the Premises obtained by Landlord by any of said
means shall not be construed or deemed to be a forcible or unlawful entry into,
or a detainer of, the Premises, or an eviction of Tenant from the Premises or
any portion thereof.

11.  LIABILITY.

     a.   Landlord and its agents, officers, directors and employees assume no
liability or responsibility whatsoever with respect to the conduct or operation
of the business to be conducted in the Premises and shall have no liability for
any claim of loss of business or interruption of operations (or any claim
related thereto). Landlord and its agents, officers, directors and employees
shall not be liable for any accident to or injury to any person or persons or
property in or about the Premises which are caused by the conduct and operation
of said business or by virtue of equipment or property of the Tenant in said
Premises. Tenant agrees to hold Landlord and its agents, officers, directors
and employees harmless against all such claims. Landlord and its agents,
officers, directors and employees shall not be liable to Tenant, its employees,
agents, business invitees, licensees, customers, clients, family members or
guests for any damage, compensation or claim arising from the necessity of
managing the Premises or the Building, repairing any portion of the Premises or
the Building, the interruption in the use of the Premises, accident or damage
resulting from the use of operation (by Landlord and its agents, officers,
directors and employees, Tenant, or any other person or persons whatsoever) or
failure of elevators, or heating, cooling, electrical or plumbing equipment or
apparatus, or the termination of this Lease by reason of the destruction of the
Premises, or from any fire, robbery, theft, mysterious disappearance and/or any
other casualty, or from any leakage in any part of portion of the Premises or
the Building, or from water, rain or snow that may leak into or flow from any
part of the Premises or the Building, or from any other cause whatsoever, unless
occasioned by the willful misconduct or acts of gross negligence of Landlord.
Any goods, property or personal effects, stored or placed by the Tenant in or
about the Premises or the Building, shall be at the risk of the Tenant, and
Landlord and its agents, officers, directors and employees shall not in any
manner be held responsible therefor. The agents and employees of Landlord are
prohibited from receiving any packages or other articles delivered to the
Building for Tenant, and if any such agent or employee receives any such package
or articles, such agent or employee shall be the agent of the Tenant for such
purposes and not of Landlord.

     b.   Subject to the provisions of Section 12.d, below, Tenant hereby agrees
to indemnify and hold Landlord and its agents, officers, directors and employees
harmless from and against any cost, damage, claim, liability or expense
(including attorneys' fees) incurred by or claimed against Landlord and its
agents, officers, directors and employees, directly or indirectly, as a result
of or in any way arising from (i) Tenant's use and occupancy of the Premises or
in any other manner which relates to the business of the Tenant, including, but
not limited to, any cost, damage, claim, liability or expense arising from any
violation of any zoning, health, Environmental Laws or other laws, ordinance,
order, rule or regulation of any governmental body or agency; (ii) the
negligence of Tenant, its officers, directors, employees and agents; (iii) any
default, breach or violation of this Lease by Tenant; or (iv) injury or death to
individuals or damage to property sustained in or about the Premises.

12.  INSURANCE.

     a.   Tenant shall maintain at all times during the Term hereof and at its
sole cost and expense, broad-form commercial general liability insurance for
bodily injury and property damage naming Landlord as an additional insured, in
such amounts as are adequate to protect Landlord and Landlord's managing agents
against liability for injury to or death of any person in connection with the
use, operation or condition of the Premises. Such insurance at all times shall
be in an amount of not less than Three Million Dollars ($3,000,000) combined
single limit aggregate for bodily injury or death or damage to property. If, in
the opinion of the insurance broker retained by Landlord, the amount of public
liability and property damage insurance coverage at any time during the Term is
not adequate, Tenant shall increase the insurance coverage as required by
Landlord's insurance broker. In no event shall the limits of such policy be
considered as limiting the liability of Tenant under this Lease.

     b.   Tenant shall at all times during the Term hereof maintain in effect
policies of insurance covering any Alterations, additions or improvements as may
be made by Tenant after the Commencement Date, interior plate glass, trade
fixtures, merchandise and all other personal property from time to time in or on
the Premises, in an amount not less than one hundred percent (100%) of their
actual replacement cost, providing protection against all risks covered by
standard form of "Fire and Extended Coverage Insurance," together with insurance
against vandalism and malicious mischief.

                                       13
<PAGE>

Tenant shall also maintain at its sole cost and expense workman's compensation
insurance in the maximum amount required by law.

     c.   All insurance required to be carried by Tenant shall be issued by
responsible insurance companies, qualified to do business in the Commonwealth of
Virginia and reasonably acceptable to Landlord. Each policy shall name Landlord
and the property management company retained by Landlord at the Building, as
additional insureds, and shall contain a provision that the same may not be
cancelled or reduced without providing Landlord not less than thirty (30) days'
prior written notice. Copies of all policies or, at Landlord's option,
certificates of insurance (ACORD 27 only) evidencing the existence and amounts
of said insurance shall be delivered to Landlord no later than five (5) days
prior to the Commencement Date, and renewals thereof shall be delivered to
Landlord at least ten (10) days prior to the expiration of any such policy. If
Tenant fails to adhere to the requirements of this Section 12, Landlord may
order such insurance and charge the cost thereof to Tenant, which amount shall
be deemed Additional Rent hereunder and shall be payable by Tenant upon demand.
Tenant's failure to provide and keep in force the aforementioned insurance shall
be regarded as a material default hereunder, entitling Landlord to exercise any
or all of the remedies provided in this Lease. Any policy may be carried under
so-called "blanket coverage" form of insurance policies. Tenant shall obtain and
furnish evidence to Landlord of the waiver by Tenant's insurance carriers of any
right of subrogation against Landlord.

     d.   Each party hereby waives any and every right or cause of action for
any and all loss of, or damage to, any of its property (whether or not such loss
or damage is caused by the fault or negligence of the other party or anyone for
whom said other party may be responsible), which loss or damage is covered by
valid and collectible fire, extended coverage, "All Risk" or similar policies,
maintained by such party or required to be maintained by such party under this
Lease, but only to the extent that such loss or damage is recovered under said
insurance policies (if such policy or policies have been obtained) or would have
been recovered if such party had obtained the required insurance coverage
hereunder. Written notice of the terms of said mutual waivers shall be given to
each insurance carrier and said insurance policies shall be properly endorsed,
if necessary, to prevent the invalidation of said insurance coverages by reason
of said waivers.

     e.   Throughout the Term, Landlord shall maintain fire and casualty
insurance covering the Building in a then-commercially reasonable amount
relative to comparable buildings in the Herndon, Virginia area.

13.  FIRE OR CASUALTY.

     a.   If the Premises or any part thereof shall be damaged by fire or any
other cause, Tenant shall give prompt notice thereof to Landlord. If, in the
judgment of Landlord's architect, restoration of the Premises is possible within
a period of six (6) months from the date of the damage, Landlord shall restore
the Premises to the extent of the improvements therein on the Commencement Date,
provided adequate insurance proceeds are available and Tenant shall make all of
its insurance proceeds available to Landlord in accordance with Tenant's
insurance obligations set forth in Section 12, above (subject to any prior
rights of any mortgagee in and to such proceeds). In addition, Tenant shall
repair and restore, at Tenant's sole expense, all Alterations made by Tenant in
the Premises and all trade fixtures and other equipment and property owned by
Tenant and located in the Premises. If the Premises are unusable, in whole or in
part, during such restoration, the Monthly Base Rent and Additional Rent
hereunder shall be abated to the extent and for the period that the Premises are
unusable; provided, however, that if such damage or destruction shall result
from the fault of Tenant, its agents, servants or invitees, Tenant shall not be
entitled to any abatement of Monthly Base Rent or Additional Rent.

     b.   If restoration is not possible on the sole judgment of Landlord's
architect within the aforesaid six (6) month period, Landlord shall so notify
Tenant, and Landlord and Tenant shall each have the right to terminate this
Lease by giving written notice thereof to the other party within sixty (60) days
after the occurrence of such damage, in which event this Lease and the tenancy
hereunder shall terminate as of the date of such damage or destruction and the
Monthly Base Rent and Additional Rent will be apportioned as of the date of such
damage or destruction. If neither party exercises its right of termination, the
Premises shall be restored as provided above.

     c.   In case the Building generally is so severely damaged by fire or other
casualty (although the Premises may not be affected) that Landlord shall decide
in its sole discretion not to rebuild or reconstruct the Building, then this
Lease and the tenancy hereunder shall terminate on the date specified by
Landlord in a notice given no later than sixty (60) days after the date of such
casualty.

                                       14
<PAGE>

14.  EMINENT DOMAIN. If the Premises or any part thereof shall be taken by any
governmental or quasi-governmental authority pursuant to the power of eminent
domain, Tenant shall make no claim for compensation in such proceedings. All
sums awarded or agreed upon between Landlord and the condemning authority for
the taking of the interest of Landlord or Tenant, whether as damages or as
compensation, will be the property of Landlord. In the event of such taking rent
shall be paid to the date of vesting of title in the condemning authority
Notwithstanding the foregoing, Tenant shall have the right to make a separate
claim with the condemning authority for Tenant's expenses associated with moving
from the Premises; provided said claim in no way affects or reduces Landlord's
claims hereunder.

15.  SUBORDINATION AND ESTOPPEL CERTIFICATES.

     a.   This Lease shall be subject and subordinate at all times to all ground
or underlying leases which now exist or may hereafter be executed affecting the
Building or any part thereof or the Land, and to the lien of any mortgages or
deeds of trust in any amount or amounts whatsoever now or hereafter placed on or
against the Building or any part thereof or the Land, or on or against
Landlord's interest or estate therein or on or against any ground or underlying
lease without the necessity of having further instruments on the part of Tenant
to effectuate such subordination. Upon request of Landlord, Tenant will execute
any further written instrument necessary to subordinate its rights hereunder to
any such underlying leases or liens. If, at any time, or from time to time
during the Term, any mortgagee shall request that this Lease have priority over
the lien of such mortgage, and if Landlord consents thereto, this Lease shall
have priority over the lien of such mortgage and all renewals, modifications,
replacements, consolidations and extensions thereof and all advances made
thereunder and interest thereon, and Tenant shall, within ten (10) days after
receipt of a request therefor from Landlord, execute, acknowledge and deliver
any and all documents and instruments confirming the priority of this Lease. In
any event, however, if this Lease shall have priority over the lien of a first
mortgage, this Lease shall not become subject or subordinate to the lien of any
subordinate mortgage, and Tenant shall not execute any subordination documents
or instruments for any subordinate mortgagee, without the written consent of the
first mortgage.

     b.   In the event of (i) a transfer of Landlord's interest in the Building,
(ii) the termination of any ground or underlying lease of the Building or the
Land, or both, or (iii) the purchase or other acquisition of the Building or
Landlord's interest therein in a foreclosure sale or by deed in lieu of
foreclosure under any mortgage or deed of trust, or pursuant to a power of sale
contained in any mortgage or deed of trust, then in any of such events Tenant
shall, at the request of Landlord or Landlord's successor in interest, attorn to
and recognize the transferee or purchaser of Landlord's interest or the lessor
under the terminated ground or underlying lease, as the case may be, as Landlord
under this Lease for the balance then remaining of the Term, and thereafter this
Lease shall continue as a direct lease between such person or entity, as
"Landlord," and Tenant, as "Tenant," except that such lessor, transferee or
purchaser shall not be liable for any act or omission of Landlord before such
lease termination or before such person's succession to title, nor be subject to
any offset, defense or counterclaim accruing before such lease terminiation or
before such person's succession to title, nor be bound by any payment of Monthly
Base Rent or Additional Rent before such lease termination or before such
person's succession to title for more than one month in advance.

     c.   Tenant shall, at any time, and from time to time, upon ten (10) days'
prior written notice from Landlord, furnish Landlord an estoppel agreement
addressed to Landlord, Landlord's mortgagee and any prospective purchaser of the
Building and the Land, substantially in the form attached hereto as Exhibit D
and incorporated herein by this reference.

16.  DEFAULT AND REMEDIES.

     a.   If Tenant shall (i) fail to pay any installment of Monthly Base Rent,
although no legal or formal demand has been made therefor, within five (5)
calendar days after the due date therefor, or (ii) fail to make any payment of
Additional Rent or any other payment required by the terms and provisions
hereof, within five (5) days after notice or demand therefor; or (iii) convey,
assign, mortgage or sublet this Lease or the Premises or any part thereof, or
attempt any of the foregoing, without the prior written consent of Landlord; or
(iv) commit or suffer to exist an Event of Bankruptcy (as hereinafter defined),
or (v) violate or fail to perform any of the other terms, conditions, covenants,
or agreements herein made by Tenant and fails to cure such default within
fifteen (15) calendar days after written notice, provided, however, that if the
nature of Tenant's failure is such that more than fifteen (15) days are
reasonably required for its cure, then Tenant shall not be in default if it
begins such cure within the fifteen (15) day period described above and
thereafter diligently prosecutes such cure to completion within an additional
thirty (30) days; then there shall be deemed to have been committed an "Event of
Default."

     b.   In the event of any Event of Default, Landlord may at any time
thereafter, without notice and demand and without limiting Landlord in the
exercise of any other right or remedy which Landlord may have by reason of such
default or breach do any of the following:

          (i)  Landlord may terminate this Lease, by giving written notice of
such termination to Tenant, whereupon this Lease shall automatically cease and
terminate and Tenant shall be immediately obligated to quit the Premises. Any
other notice to quit or notice of Landlord's intention to re-enter the Premises
is hereby expressly waived. If Landlord elects to terminate this Lease,
everything contained in this Lease on the part of Landlord to be done and
performed shall cease without prejudice, subject,

                                       15
<PAGE>

however, to the right of Landlord to recover from Tenant all rent and any other
sums accrued up to the time of termination or recovery of possession by
Landlord, whichever is later.

          (ii)   With or without the termination of this Lease, Landlord may
proceed to recover possession of the Premises under and by virtue of the
provisions of the laws of the Commonwealth of Virginia, or by such other
proceedings, including re-entry and possession, as may be applicable. If this
Lease is terminated or Landlord recovers possession of the Premises before the
expiration of the Term by reason of Tenant's default as hereinabove provided, or
if Tenant shall abandon or vacate the Premises before the Lease Expiration Date
without having paid the full rental for the remainder of such Term, Landlord
shall have the option to take reasonable steps to relet the Premises for such
rent and upon such terms as are not unreasonable under the circumstances and, if
the full rental reserved under this Lease (and any of the costs, expenses or
damages indicated below) shall not be realized by Landlord, Tenant shall be
liable for all damages sustained by Landlord, including, without limitation,
deficiency in rent during any period of vacancy or otherwise; the costs of
removing and storing the property of Tenant or of any other occupant; all
reasonable expenses incurred by Landlord in enforcing Landlord's remedies,
including reasonable attorneys' fees and Late Charges as provided herein; and
reasonable attorneys' fees, advertising, brokerage fees and expenses of placing
the Premises in first class rentable condition. Landlord, in putting the
Premises in good order or preparing the same for rerental may, at Landlord's
option, make such alterations, repairs, or replacements in the Premises as
Landlord, in its sole judgment, considers advisable and necessary for the
purpose of reletting the Premises, and the making of such alterations, repairs,
or replacements shall not operate or be construed to release Tenant from
liability hereunder as aforesaid.

          (iii)  Any damage or loss of rent sustained by Landlord may be
recovered by Landlord, at Landlord's option, at the time of termination of this
Lease, the time of the reletting, or in separate actions, from time to time, as
said damage shall have been made more easily ascertainable by successive
relettings, or at Landlord's option in a single proceeding deferred until the
expiration of the Term (in which event Tenant hereby agrees that the cause of
action shall not be deemed to have accrued until the date of expiration of said
Term) or in a single proceeding prior to either the time of reletting or the
expiration of the Term. If Landlord elects to repossess the Premises without
terminating this Lease, then Tenant shall be liable for and shall pay to
Landlord all rent and other indebtedness accrued to the date of such
repossession, plus rent required to be paid by Tenant to Landlord during the
remainder of this Lease until the date of expiration of the Term, diminished by
any net sums thereafter received by Landlord through reletting the Premises
during such period (after deducting expenses incurred by Landlord as provided in
Section 16.b(ii), above). In no event shall Tenant be entitled to any excess of
any rent obtained by reletting over and above the rent herein reserved. Actions
to collect amounts due from Tenant as provided in this Section 16.b(iii) may be
brought from time to time, on one or more occasions, without the necessity of
Landlord's waiting until expiration of the Term. Upon termination of this Lease
or repossession of the Premises following a default hereunder, Landlord may
relet the whole or any portion of the Premises for any period, to any tenant,
and for any use and purpose on such terms and at such rentals as Landlord in its
exclusive judgment may determine.

     C.   Notwithstanding the foregoing, if Landlord terminates this Lease
pursuant to Section 16.b(i), above, Landlord shall be entitled to recover from
Tenant, and Tenant shall pay to Landlord on demand, as and for liquidated and
agreed final damages for Tenant's default, an amount equal to the difference
between (i) all Monthly Base Rent, Additional Rent and other sums which would be
payable under this Lease from the date of such demand (or, if it is earlier, the
date to which Tenant shall have satisfied in full its obligations under Section
16.b(ii), above) for what would be the then unexpired Term in the absence of
such termination, and (ii) the air market rental value of the Premises over the
same period (net of all expenses and all vacancy periods reasonably projected by
Landlord to be incurred in connection with the reletting of the Premises), with
such differential discounted at the rate of six percent (6%) per annum. Nothing
herein shall be construed to affect or prejudice Landlord's right to prove, and
claim in full, unpaid Rent or any other amounts accrued prior to termination of
this Lease.

     d.   Notwithstanding anything herein to the contrary, upon the occurrence
of an Event of Default hereunder, Landlord, with or without terminating the
Lease, may immediately reenter and take possession of the Premises and evict
Tenant therefrom, without legal process of any kind, using such force as may be
necessary, without being liable for or guilty of trespass, forcible entry or any
other tort. Landlord's right to exercise such "self-help" remedy shall be in
addition to, and not in limitation of, Landlords other rights and remedies
hereunder for a breach by Tenant of its obligations under the Lease.

     e.   Tenant hereby expressly waives any and all rights of redemption
granted by or under any present or future laws in the event Tenant is evicted or
dispossessed for any cause, or in the event Landlord obtains possession of the
Premises, by reason of the violation by Tenant of any of the covenants and
conditions of this Lease or otherwise. In addition, Tenant hereby expressly
waives any and all rights to bring any action whatsoever against any tenant
taking possession after Tenant has been dispossessed or evicted hereunder, or to
make any such tenant or party to any action brought by Tenant against Landlord.

     f.   Landlord and Tenant shall and each does hereby waive trial by jury in
any action, proceeding or counterclaim brought by either of the parties hereto
against the other on any matters whatsoever arising out of or in any way
connected with this Lease or its termination, the relationship of Landlord and
Tenant, Tenant's use or occupancy of the Premises or any claim of injury or
damage and any emergency statutory or any other statutory remedy. In the event
Landlord commences any summary

                                       16
<PAGE>

proceeding for nonpayment of Rent or Additional Rent, or commences any other
action or proceeding against Tenant in connection with this Lease, Tenant will
interpose no counterclaim of whatever nature or description in any such
proceeding.

     g.   Nothing contained herein shall prevent the enforcement of any claim
Landlord may have against Tenant for anticipatory breach of the unexpired Term.
In the event of a breach or anticipatory breach by Tenant of any of the
covenants or provisions hereof, Landlord shall have the right of injunction and
the right to invoke any remedy allowed at law or in equity as if reentry,
summary proceedings and other remedies were not provided for herein.

     h.   If Tenant is a sovereign nation or claims the protection of any
diplomatic or sovereign immunity then, for purposes of any action by Landlord
against Tenant to enforce the terms and conditions of this Lease, Tenant hereby
waives and relinquishes any and all rights to immunity under the Foreign
Sovereign Immunities Act of 1976, 28 U.S.C. (S)(S)1602-1611 or otherwise,
including, but not limited to, immunity from jurisdiction, from execution upon a
judgment entered by any Court of the United States or of the Commonwealth of
Virginia, and/or from attachment in aid of execution of any such judgment. In
addition, in the event Tenant shall fail to pay all rents due under the terms of
this Lease or shall be in substantial default of any other provision of this
Lease and Landlord seeks repossession of the Premises, Tenant hereby waives and
relinquishes all immunity under the Vienna Convention on Consular Relations,
21. U.S.T. 77, T.I.A.S. No. 6820, or otherwise, including, but not limited to,
immunity from execution of a writ of restitution.

     i.   In the event of any default by Landlord, Tenant's exclusive remedy
shall be an action for damages (Tenant hereby waiving the benefit of any laws
granting Tenant a lien upon the property of Landlord or upon rent due Landlord),
but prior to any such action Tenant will give Landlord notice specifying such
default with particularity, and Landlord shall have thirty (30) days after
receipt of such notice in which to cure any such default; provided, however,
that if such default cannot, by its nature, be cured within such period,
Landlord shall not be deemed in default if Landlord shall within such period
commence to cure such default and shall diligently prosecute the same to
completion. Unless and until Landlord fails so to cure any default after notice,
Tenant shall have no remedy or cause of action by reason thereof. All
obligations of Landlord hereunder will be construed as covenants, not
conditions; all such obligations will be binding upon Landlord only during the
period of its ownership of the Building and not thereafter; and no default or
alleged default by Landlord shall relieve or delay performance by Tenant of its
obligations to continue to pay Monthly Base Rent and Additional Rent hereunder
as and when the same shall be due.

17.  PAYMENT OF TENANT'S OBLIGATIONS BY LANDLORD AND UNPAID RENT. All covenants
and agreements to be performed by Tenant under any of the terms of this Lease
shall be performed by Tenant at Tenant's sole cost and expense. If Tenant shall
fail to pay any sum of money, other than rent, required to be paid by it
hereunder or shall fail to perform any other act on its part to be performed
hereunder, and such failure shall continue beyond any applicable grace period
set forth in this Lease, Landlord may, without waiving or releasing Tenant from
any obligations of Tenant, make any such payment or perform any such other act
on Tenant's part. All sums so paid by Landlord and all necessary incidental
costs, together with interest per annum thereon at two percentage points (2%)
over the prime interest rate ("Prime Rate") then in effect at The Riggs National
Bank of Washington, D.C. (or such other bank designated by Landlord), from the
date of such payment by Landlord shall be payable to Landlord as Additional Rent
hereunder, on demand, and Tenant covenants and agrees to pay any such sums.
Landlord shall have (in addition to any other right or remedy of Landlord) the
same rights and remedies in the event of the nonpayment thereof by Tenant as in
the case of default by Tenant in the payment of the rent. In addition, any rent,
including, without limitation, Annual Base Rent, Operating Cost Pass-Throughs,
Real Estate Tax Pass-Throughs and Late Charges, which are not paid timely will
accrue interest per annum at two percentage points (2%) over the Prime Rate
from the date such payments are due.

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

19.  ABANDONMENT OF PERSONAL PROPERTY. Upon the expiration of the Term or
earlier termination of this Lease Tenant shall forthwith remove Tenant's goods
and effects and those of any other persons claiming under Tenant, or
subtenancies assigned to it, and quit and deliver the Premises to Landlord
peaceably and quietly. Goods and effects not removed by Tenant after termination
of this Lease (or within forty-eight (48) hours after a termination by reason of
Tenant's default) shall be considered abandoned. Landlord shall give Tenant
notice of right to reclaim abandoned property pursuant to applicable local law
and may thereafter dispose of the same as it deems expedient, including storage
in a public warehouse or elsewhere at the cost and for the account of Tenant,
but Tenant shall promptly upon demand reimburse Landlord for any expenses
incurred by Landlord in connection therewith, including reasonable attorney's
fees.

20.  HOLD-OVER. If Tenant shall not immediately surrender the Premises at the
expiration of the Term then Tenant shall, by virtue of the provisions of this
Section 20, become a tenant by the month. In such event Tenant shall be required
to pay one hundred fifty percent (150%) of the amount of the Monthly Base Rent
then in effect and as subsequently escalated in accordance with the provisions
hereof,

                                       17
<PAGE>

together with all Additional Rent in effect during the last month of the Term
commencing said monthly tenancy with the first day next after the end of the
Term; and said Tenant, as a month-to-month tenant, shall be subject to all of
the conditions and covenants of this Lease as though the same had originally
been a monthly tenancy, except as otherwise provided above with respect to the
payment of Rent. Each party hereto shall give to the other at least thirty (30)
days' written notice to quit the Premises, except in the event of non-payment of
Rent provided for herein when due, or of the breach of any other covenant by the
said Tenant, in which event, Tenant shall not be entitled to any notice to quit,
the usual thirty (30) days' notice to quit being expressly waived; provided,
however, that in the event that Tenant shall hold over after expiration of the
Term, and if Landlord shall desire to regain possession of said Premises
promptly at the expiration of the Term, then at any time prior to the acceptance
of the Rent by Landlord from Tenant, as a monthly tenant hereunder, Landlord, at
its election or option, may reenter and take possession of the Premises
forthwith, without process, or by any legal action or process in the
Commonwealth of Virginia.

21.  PARKING.

     a.  Tenant may use up to twenty-two (22) unreserved parking spaces in the
surface lot located adjacent to the Building (the "Lot"), which parking spaces
shall be available on a first come, first served basis with all other tenants of
the Buildings and their respective employees, licensees and invitees.

     b.  Tenant agrees that it and its employees shall observe reasonable safety
precautions in the use of the Building's parking areas, and shall at all times
abide by all rules and regulations promulgated by Landlord governing the use of
the Building's parking areas. It is understood and agreed that Landlord does not
assume any responsibility for any damage or loss to any automobiles parked on
the Lot or to any personal property located therein, or for any injury
sustained by any person in or about the Building's parking areas.

22.  NOTICES.  Any and all notices or demands required or permitted herein
shall be in writing and served (i) personally, (ii) by certified mail, return
receipt requested, or (iii) by guaranteed overnight courier, at the addresses
provided in Section 1.g, above. If served personally, service shall be
conclusively deemed made at the time of such delivery. If served by certified
mail, service shall be conclusively deemed made forty-eight (48) hours after the
deposit thereof in the United States mail, postage prepaid, pursuant to this
Section 22. If served by overnight courier, service shall be conclusively
deemed made one (1) business day after deposit with such courier. Either party
may specify a different address according to the terms of this Section 22.

23.  BROKERS. Landlord and Tenant recognize LPC Commercial Services, Inc., as
Landlord's broker and CB Richard Ellis, as Tenant's broker, as the sole brokers
(the "Brokers") with respect to this Lease and Landlord agrees to be responsible
for the payment of any leasing commissions owed to the aforesaid Brokers in
accordance with the terms of separate commission agreements entered into between
Landlord and each of said Brokers. Landlord and Tenant each represents and
warrants to the other that no other broker has been employed in carrying on any
negotiations relating to this Lease and shall each indemnify and hold harmless
the ether from any claim for brokerage or other commission arising from or out
of any breach of the foregoing representation and warranty.

24.  LANDLORD'S LIEN. To secure the payment of all Annual Base Rent and
Additional Rent due and to become due hereunder and to assure the faithful
performance of all of the other covenants of this Lease required to be performed
by Tenant, Tenant hereby grants to Landlord an express contractual lien on and
security interest in all property, chattels or merchandise which may be placed
in the Premises and also upon all proceeds of any insurance which may accrue to
Tenant by reason of damage to or destruction of any such property, chattels or
merchandise. All exemption laws are hereby waived by Tenant. Such contractual
lien and security interest are: granted in addition to Landlord's statutory and
common law liens and shall be cumulative hereto; and may be foreclosed with or
without court proceedings, by public or private sale, upon not less than three
(3) days' prior notice. Landlord shall have the right to become purchaser upon
being the highest bidder at such sale. Upon request of Landlord, Tenant shall
execute Uniform Commercial Code financing statements relating to the aforesaid
security interest.

25.  RULES AND REGULATIONS. Tenant shall at all times comply with the rules and
regulations set forth in Exhibit E attached hereto and with any reasonable
additions thereto and modifications thereof adopted from time to time by
Landlord; Tenant shall be given five (5) business days' written notice of any
such additions and modifications. Each such rule or regulation shall be deemed
to be a covenant of this Lease to be performed and observed by Tenant.

26.  QUIET ENJOYMENT. Landlord covenants that, if Tenant is not in default
hereunder, Tenant shall at all times during the Term peaceably and quietly have,
hold and enjoy the Premises without disturbance from Landlord, subject to the
terms of this Lease and to the rights of the parties presently or hereinafter
secured by any deed of trust or mortgage against the Building.

27.  ENVIRONMENTAL CONCERNS.

     a.  Tenant, its agents, employees, contractors or invites shall not (i)
cause or permit any Hazardous Materials (hereinafter defined) to be brought
upon, stored, used or disposed on, in or about

                                       18
<PAGE>

the Premises and/or the Building, or (ii) knowingly permit the release,
discharge, spill or emission of any Hazardous Material in or from the Premises.

     b.  Tenant hereby agrees that it is and shall be fully responsible for all
costs, expenses, damages or liabilities (including, but not limited to those
incurred by Landlord and/or its mortgagee) which may occur from the use,
storage, disposal, release, spill, discharge or emissions of Hazardous Materials
by Tenant whether or not the same may be permitted by this Lease. Tenant shall
defend, indemnify and hold harmless Landlord, its mortgagee and its agents from
and against any claims, demands, administrative orders, judicial orders,
penalties, fines, liabilities, settlements, damages, costs or expenses
(including, without limitation, reasonable attorney and consultant fees, court
costs and litigation expenses) of whatever kind or nature, known or unknown,
contingent or otherwise, arising out of or in any way related to the use,
storage, disposal, release, discharge, spill or emission of any Hazardous
Material, or the violation of any Environmental Laws, by Tenant, its agents,
employees, contractors or invites. The provisions of this Section 27 shall be in
addition to any other obligations and liabilities Tenant may have to Landlord at
law or in equity and shall survive the transactions contemplated herein or any
termination of this Lease.

     c.  As used in this Lease, the term "Hazardous Materials" shall include,
without limitation:

         (i)    Those substances included within the definitions of "hazardous
substances", "hazardous materials," toxic substances," or "solid waste" in the
Comprehensive Environmental Response Compensation and Liability Act of 1980 (42
U.S.C.(S)9601 et seq.) ("CERCLA") as amended by Superfund Amendments and
Reauthorization Act of 1986 ("SARA"), the Resource Conservation and Recovery Act
of 1976 ("RCRA"), and the Hazardous Materials Transportation Act, and in the
regulations promulgated pursuant to said laws, all as amended;

         (ii)   Those substances listed in the United States Department
of Transportation Table (49 CFR 172.101 and amendments thereto) or by the
Environmental Protection Agency (of any successor agency) as hazardous
substances (40 CFR Part 302 and amendments thereto); and

         (iii)  Any material, waste or substance which is (A) petroleum, (B)
asbestos, (C) polychlorinated biphenyl, (D) designated as a "hazardous
substance" pursuant to Section 311 of the Clean Water Act, 33 U.S.C. (S)1251 et
seq. (33 U.S.C. (S)1321) or listed pursuant to Section 307 of the Clean Water
Act (33 U.S.C. (S)1317); (E) flammable explosives; or (F) radioactive materials.

     d.  All federal, state or local laws, statutes, regulations, rules,
ordinances, codes, standards, orders, licenses and permits of any governmental
authority identified in Section 27.c, above, or issued or promulgated thereunder
shall be referred to as the "Environmental Laws."

28.  OPTION TO EXTEND TERM.

     a.  Tenant shall have and is hereby granted the option to extend the Term
hereof for one (1) additional period of five (5) years (the "Extension Period"),
provided (i) Tenant gives written notice to Landlord of Tenant's election to
exercise such extension option no earlier than twelve (12), and no later than
nine (9) months prior to the expiration of the last Lease Year of the Term; (ii)
no Event of Default has occurred during the Term, and no event exists at the
time of the exercise of such option or arises subsequent thereto, which event by
notice and/or the passage of time would constitute an Event of Default if not
cured within the applicable cure period; and (iii) Tenant has not assigned its
interest in this Lease or sublet more than twenty-five percent (25%) of the
Premises.

     b.  All terms and conditions of this lease, including without limitation
all provisions governing the payment of Additional Rent and annual increases in
Annual Base Rent, shall remain in full force and effect during the Extension
Period, except that Annual Base Rent payable during the first Lease Year of the
Extension Period shall be the then-current Fair Market Rental Rate (hereinafter
defined) with respect to comparable office space at the time of the commencement
of the Extension Period (using as a Base Year the calendar year in which occurs
the first day of the Extension Term for purposes of determining Tenant's
obligation to pay Operating Cost Pass-Throughs and Real Estate Tax Pass-
Throughs). Landlord shall not be obligated to make any improvements or
alteration in or to the Premises. There shall be no rental abatement during the
Extension Period. As used in this Lease, the term "Fair Market Rental Rate"
shall mean the fair market rental rate per square foot of rentable area that
would be agreed upon between a landlord and a tenant entering into a new lease
for comparable space as to location, configuration, view and elevator exposure,
size and use, in a comparable building as to location, quality, reputation and
age, with a comparable build-out, a comparable term and a comparable base year
for operating expense and real estate tax pass-throughs assuming the following:
(1) the landlord and tenant are informed and well-advised and each is acting in
what it considers its own best interests; (2) a tenant improvement allowance,
free rent periods or any other special concessions (for example, design fees,
moving allowances, refurbishing allowances, etc.) will not be provided to Tenant
except to the extent that such allowances or concessions are reflected in the
fair market rental rates being obtained (in which event the Fair Market Rental
Rate shall be reduced by the economic equivalent of the allowances or
concessions not offered to Tenant); and (3) the tenant will continue to pay its
share of increases in Operating Expenses and Real Estate Taxes over a new base
year (which, for Tenant, is the calendar year in which occurs the first day of
the Extension Period).

                                       19
<PAGE>

     c.  Landlord and Tenant shall negotiate in good faith to determine the
Annual Base Rent for the first Lease Year of the Extension Period, for a period
of thirty (30) days after the date on which Landlord receives Tenant's written
notice of Tenant's election to exercise the extension option provided for under
this Section 28. In the event Landlord and Tenant are unable to agree upon the
Annual Base Rent for the first Lease Year of the Extension Period within said
thirty (30)-day period, the Fair Market Rental Rate, and current market annual
escalations, if any, for the Premises shall be determined by a board of three
(3) licensed real estate brokers, one of whom shall be named by the Landlord,
one of whom shall be named by Tenant, and the two so appointed shall select a
third. Each real estate broker so selected shall be licensed in the Commonwealth
of Virginia specializing in the field of commercial office leasing, having no
less than ten (10) years' experience in such field, and recognized as ethical
and reputable within the field. Landlord and Tenant agree to make their
appointments promptly within ten (10) days after the expiration of the thirty
(30)-day period, or sooner if mutually agreed upon. The two (2) brokers selected
by Landlord and Tenant shall promptly select a third broker within ten (10) days
after they both have been appointed, and each broker, within fifteen (15) days
after the third broker is selected, shall submit his or her determination of the
Fair Market Rental Rate. The Fair Market Rental Rate shall be the mean of the
two (2) closest rental rate determinations; provided, however, in no event shall
the Annual Base Rent for the first Lease Year of the Extension Period be less
(on a per square foot basis) than the fully-escalated Annual Base Rent in effect
for the last Lease Year of the initial Term. Landlord and Tenant shall each pay
the fee of the broker selected by it, and they shall equally share the payment
of the fee of the third broker.

     d.  Should the Term of the Lease be extended hereunder, Tenant shall
execute an amendment modifying this Lease within ten (10) business days after
Landlord presents same to Tenant, which agreement shall set forth, among other
things, the Annual Base Rent and the Monthly Base Rent for the Extension Period.
Should Tenant fail to execute the amendment (which accurately sets forth such
information and which contains no material provisions inconsistent with the
terms hereof) within ten (10) business days after presentation of same by
Landlord, time being of the essence, Tenant's right extend the Term of the Lease
shall, at Landlord's sole option, terminate, and Landlord shall be permitted to
lease such space to any other person or entity upon whatever terms and
conditions are acceptable to Landlord in its sole discretion.

29.  MISCELLANEOUS PROVISIONS.

     a.  Time is of the essence with respect to all of Tenant's obligations
under this Lease.

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

     c.  In the event of any action or proceeding brought by either party
against the other under this Lease, the prevailing party shall be entitled to
recover from the other party the fees of its attorneys in such action or
proceeding in such amount as the court may judge to be reasonable for such
attorney's fees.

     d.  Except as expressly otherwise provided in this Lease, all of the
provisions of this Lease shall bind and inure to the benefit of the parties
hereto and to their heirs, successors, representatives, executors,
administrators, transferees and assigns. The term "Landlord," as used herein,
shall mean only the owner of the Building and the Land or of a lease of the
Building and the Land, at the time in question, so that in the event of any
transfer or transfers of title to the Building and the Land, or of Landlord's
interest in a lease of the Building and the Land, the transferor shall be and
hereby is relieved and freed of all obligations of Landlord under this Lease
accruing before such transfer, and it shall be deemed, without further
agreement, that such transferee has assumed and agreed to perform and observe
all obligations of Landlord herein during the period it is the holder of
Landlord's interest under this Lease.

     e. At Landlord's request, Tenant will execute a memorandum of this Lease in
recordable form setting forth such provisions hereof as Landlord deems
desirable. Further, at Landlord's request, Tenant shall acknowledge before a
notary public its execution of this Lease, so that this Lease shall be in form
for recording.

     f.  Notwithstanding any provision to the contrary herein, Tenant shall
look solely to the estate and property of Landlord in and to the Building in
the event of any claim against Landlord arising out of or in connection with
this Lease, the relationship of Landlord and Tenant, or Tenant's use of the
Premises, and Tenant agrees that the liability of Landlord arising out of or in
connection with this Lease, the relationship of Landlord and Tenant, or Tenant's
use of the Premises, shall be limited to such estate and property of Landlord in
and to the Building. No properties or assets of Landlord other than the estate
and property of Landlord in and to the Building and no property owned by any
partner of Landlord shall be subject to levy, execution or other enforcement
procedures for the satisfaction of any judgment (or other judicial process) or
for the satisfaction of any other remedy of Tenant arising out of or in
connection with this Lease, the relationship of Landlord and Tenant or Tenant's
use of the Premises.

                                       20
<PAGE>

     g.   Landlord and Landlord's agents have made no representations or
promises with respect to the Building, the Land or the Premises except as herein
expressly set forth.

     h.   Landlord and Tenant shall be excused from performing an obligation or
undertaking provided for in this Lease so long as such performance is prevented
or delayed, retarded or hindered by Act of God, force majeure, fire, earthquake,
flood, explosion, action of the elements, war, invasion, insurrection, riot, mob
violence, sabotage, inability to procure or a general shortage of labor,
equipment, facilities, materials or supplies in the open market, failure of
transportation, strike, lockout, action of labor unions, a taking by eminent
domain, requisition, laws orders of government, or of civil, military or naval
authorities, or any other cause whether similar or dissimilar to the foregoing,
not within the reasonable control of Landlord, including reasonable delays for
adjustments of insurance; provided, however, that no such event or cause shall
relieve Tenant of its obligations hereunder to make full and timely payments of
Rent as provided herein.

     i.   Tenant hereby elects domicile at the Premises for the purpose of
service of all notices, writs of summons or other legal documents or process in
any suit, action or proceeding which Landlord or any mortgagee may undertake
under this Lease.

     j.   Landlord shall not be liable to Tenant for any damage caused by other
tenants or persons in the Building or caused by operations of others in the
construction of any private, public or quasi-public work.

     k.   If in this Lease it is provided that Landlord's consent or approval as
to any matter will not be unreasonably withheld, and it is established by a
court or body having final jurisdiction thereover that Landlord has been
unreasonable, the sole effect of such finding shall be that Landlord shall be
deemed to have given its consent or approval, but Landlord shall not be liable
to Tenant in any respect for money damages or expenses incurred by Tenant by
reason of Landlord having withheld its consent. Nothing contained in this
paragraph shall be deemed to limit Landlord's right to give or withhold consent
unless such limitation is expressly contained in the paragraph to which such
consent pertains.

     l.   If any governmental entity or authority hereafter imposes a tax or
assessment upon or against any of the rent or other charges payable by Tenant
to Landlord hereunder (whether such tax takes the form of a lease tax, sales tax
or other tax), Tenant shall be responsible for the timely payment thereof.
Unless Landlord and Tenant otherwise agree in writing with respect to the
payment thereof, Tenant shall pay the applicable tax to Landlord in monthly
installments on the date upon which Tenant pays to Landlord the installments of
Monthly Base Rent due under this Lease.

     m.   In the event that any bank, insurance company, university, pension or
welfare fund, savings and loan association, real estate investment trust,
business trust, financial institution or other entity providing the first
mortgage financing for the Land and the Building requires, as a condition of
such financing, that modifications to this Lease be obtained, and provided that
such modifications (i) are reasonable, (ii) do not adversely affect Tenant's use
of the Premises or legal rights hereunder, and (iii) do not increase the rentals
and other sums required to be paid by Tenant hereunder, Landlord shall submit
such required modifications to Tenant, and if Tenant does not enter into and
execute a written amendment hereto incorporating such required modifications
within thirty (30) days after the same have been submitted to Tenant by
Landlord, then Landlord shall thereafter have the right, at its sole option, to
cancel this Lease. Such option shall be exercisable by Landlord giving Tenant
written notice of such termination, whereupon this Lease shall be canceled and
terminated, and both Landlord and Tenant shall thereupon be relieved from any
and all further liability or obligation hereunder.

     n.   The submission of an unsigned copy of this Lease does not constitute a
reservation of or option for the Premises, and this Lease becomes effective
only upon execution and delivery thereof by Landlord and Tenant and approval
thereof by any current mortgagee of the Project Land and the Building and any
other party having the right to approve this Lease.

     o.   This Lease and the Exhibits hereto constitute the entire agreement
between the parties, and supersedes any prior agreements or understandings
between them. This Lease is not effective until executed and delivered by
Landlord and Tenant and approved by any current mortgagee of the Building and/or
the Land. The provisions of this Lease may not be modified in any way except by
written agreement signed by both parties.

     p.   This Lease shall be subject to and construed in accordance with the
laws of the Commonwealth of Virginia.

                           [Signatures on next page]

                                      21
<PAGE>

         IN WITNESS WHEREOF, duly authorized representatives of Landlord and
Tenant have executed this Deed of Lease under seal on the day and year first
above written.

                                     LANDLORD:

WITNESS:                             W9/LWS REAL ESTATE LIMITED PARTNERSHIP, a
                                     Delaware limited partnership

                                     By: W9/LWS GEN-PAR, INC., a Delaware
----------------------------             corporation, its General Partner

                                         By: /s/ Bari S. Nichols
                                             -------------------------------
                                             Name:  BARI S. NICHOLS
                                             Title: VICE PRESIDENT

                                     TENANT:

WITNESS:                             CERTICOM CORPORATION

                                     By: /s/ Richard Brounstein
----------------------------             ------------------------------------
                                         Name: Richard Brounstein
                                         Title: SVP + CFO

                               LIST OF EXHIBITS
                               ----------------

                  EXHIBIT A:   Floor Plan of Premises

                  EXHIBIT B:   Intentionally Omitted

                  EXHIBIT C:   Declaration of Commencement Date

                  EXHIBIT D:   Form of Estoppel Certificate

                  EXHIBIT E:   Rules and Regulations

                                      22
<PAGE>

                                   EXHIBIT A

                            FLOOR PLAN OF PREMISES
<PAGE>

                                   EXHIBIT B

                             INTENTIONALLY OMITTED
<PAGE>

                                   EXHIBIT C

                       DECLARATION OF COMMENCEMENT DATE

           This Declaration of Commencement Date is made as of October 11, 2000,
by W9/LWS REAL ESTATE LIMITED PARTNERSHIP ("Landlord"), and CERTICOM CORPORATION
("Tenant"), who agree as follows:

           1.  Landlord and Tenant entered into an Office Lease Agreement dated
October 11, 2000, in which Landlord leased to Tenant and Tenant leased from
Landlord certain premises described therein in the building, located at 1175
Herndon Parkway, Herndon, Virginia. All capitalized terms herein are as defined
in the Lease.

           2.  Pursuant to the Lease, Landlord and Tenant agreed to and do
hereby confirm the following matters as of the Commencement of the Term:

               a.   the Commencement Date of the Lease is October 6, 2OOO;

               b.   the Expiration Date of the Lease is October 31, 2007;

               c.   the number of rentable square feet of the Premises is 5,982;

               d.   the number of rentable square feet of the Buildings is
                    127,120;

               e.   Tenant's Pro Rata Share of Operating Expenses is 4.71%; and

               f.   Tenant's Pro Rata Share of Real Estate Taxes is 4.71%.

           3.  Tenant confirms that:

               a.   it has accepted possession of the Premises as provided in
the Lease and is in actual occupancy of the Premises;

               b.   Landlord has fulfilled al its obligations to be provided to
Tenant as of the date hereof and all work in and to the Premises to be performed
or paid for by Landlord has been completed;

               c.   the Lease is in full force and effect and has not been
modified, altered, or amended, except as follows: ________________________; and

               d.   the obligation of Tenant to pay Rent under the Lease has
commenced and there are no set-offs or credits against Rent, and no Security
Deposit or prepaid rent has been paid except as provided by the Lease.

                                       LANDLORD:

WITNESS:                               W9/LWS REAL ESTATE LIMITED PARTNERSHIP, a
                                       Delaware limited partnership

                                       By:  W9/LWS GEN-PAR, INC., a Delaware
                                            corporation, its General Partner

                                            By: /s/ Bari S. Nichols
______________________________                  -------------------------------
                                                Name:  BARI S. NICHOLS
                                                Title: VICE PRESIDENT

                                            TENANT:

ATTEST:                                     CERTICOM CORPORATION

                                            By: /s/ Richard D Brownstein
______________________________                  -----------------------------
                                                Name:  RICHARD BROWNSTEIN
                                                Title: SYP-CFO
<PAGE>

                                   EXHIBIT D

                         FORM OF ESTOPPEL CERTIFICATE

                          TENANT ESTOPPEL CERTIFICATE
                          ---------------------------

To:               (a) ____________________________________, its successors and
                  assigns, and (b) W9/LWS Real Estate Limited Partnership, its
                  successors and assigns

Re:               Property Name: Herndon Corporate Center

                  Property Address: 1175 Herndon Parkway, Herndon, Virginia

                  Lease Date: October _________, 2000

                  Between: W9/LWS Real Estate Limited Partnership, as
                  Landlord, and Certicom Corporation, as Tenant

                  Square Footage Leased: 5,982 rentable square feet

                  Suite Number: 750

Ladies/Gentlemen:

        The undersigned ("Tenant") understands that: (a) W9/LWS Real Estate
Limited Partnership, a Delaware limited partnership ("Landlord") has contracted
with __________________, a _______________ ("Purchaser") to sell the above-
referenced property (the "Property") to Purchaser; (b) ____________, a
_________________ ("Lender") is about to make a loan (the "Loan") to Purchaser
in connection with Purchaser's acquisition of the Property, which Loan is to be
secured by a mortgage encumbering the Property and an assignment to Lender of
the leases, rents and profits from the Property; and (c) Purchaser will be
relying upon the contents of this Tenant Estoppel Certificate in connection with
the purchase of the Property; and (d) Lender will be relying upon the contents
of this Tenant Estoppel Certificate in connection with the making of the Loan.
Landlord has requested the undersigned to deliver this Tenant Estoppel
Certificate to Purchaser and Lender. The undersigned, as tenant under the above-
referenced lease (such lease, together with all amendments, supplements and
modifications being referred to collectively as the "Lease"), hereby certifies
to Purchaser, Lender and their respective successors and assigns, as of the date
hereof, as follows:

        1.   The Lease is in full force and effect. The Lease has not been
amended, modified or supplemented, except as follows (if none, state none):
______________________. The Lease, as amended (if amended), represents the
entire agreement between Landlord and Tenant as to the above-referenced demised
premises (the "Premises"). A true, correct and complete copy of the Lease is
attached hereto as Exhibit A.

        2.   The Premises consist of 5,982 square feet of rentable area and the
present use of the Leased Premises as a general office use does not violate any
clause in the Lease which specifies the purposes for which the Premises will be
used or operated.

        3.   The monthly rentals currently being paid for the Premises are as
follows:

             fixed or base rent         $______________________

             common area charges        $______________________

             percentage rent            $______________________
             (if applicable)

             merchant's association     $______________________
             (if applicable)

             real estate taxes          $______________________

             insurance                  $______________________

             utilities                  $______________________

             other [_______]            $______________________

Tenant has paid all rent and other amounts required under the Lease up to and
including ____________, 200_.

        4.   The annual base rent due under the Lease escalates upon the
commencement of each new lease year in an amount equal to __________
_________________.

        5.   Tenant pays a full pro rata share of operating charges and real
estate taxes in excess of a fixed expense base as described in the Lease.
Tenant's pro rata share of operating charges is 47%.
<PAGE>

 Tenant's pro rata share of real estate taxes is 4.71%. Tenant has paid its
 share of all such operating charges and real estate taxes in full for the
 period ending

           6.  Tenant's security deposit under the Lease, currently on deposit
 with Landlord, is $___________ (the "Security Deposit"). Tenant has paid no
 utility,maintenance or other deposit or amount to Landlord which are required
 to be returned to Tenant, and Tenant has no claim against Landlord for any such
 deposits or security. The Security Deposit has not been drawn against for rent
 due or for any other purpose by Landlord. Landlord is not liable for, or
 required to provide to Tenant, any interest on the principal amount of the
 Security Deposit.

            7.  Tenant has paid as advance rent under the Lease the amount of
 (if none, state none) $______________ (the "Advance Rent"). Except for the
 Advance Rent, Tenant has not paid to Landlord any other advances of any rent
 due under the Lease.

           8.  The commencement date of the Lease was October 6, 2000. The Lease
 terminates on October 31, 2007, subject to the following renewal or extension
 options (the "Extension Options") (if none, state none): One (1) five (5)-year
 renewal option (Fair Market Rental Rate).

 Tenant has no right or option to terminate the Lease prior to the expiration
 of its stated term.

          9.   All work and improvements required to be completed by Landlord
 at the Property have been satisfactorily completed, approved and accepted by
 Tenant, and there are no sums due to Tenant. Landlord has not agreed to grant
 Tenant any free rent or rent rebate or to make any contribution to tenant
 improvements, which agreement has not heretofore been satisfied by Landlord in
 full. Landlord has not agreed to reimburse Tenant for or to pay Tenant's rent
 obligation under any other lease. Upon the exercise of any of the Extension
 Options (as applicable) Landlord as the following obligations under the Lease
 to provide the following tenant improvements, free rent, rent rebates or make
 contributions towards tenant improvements or other refurbishments to the
 Premises or other tenant concessions, if any (if none, state none):
 ____________________________.

          10.  No default on the part of Landlord or Tenant exists under the
 Lease, except as follows: No event that with the giving of notice or the
 passage of time, or both, would constitute a default by Landlord or Tenant
 under the Lease has occurred Tenant has no offset, defense, deduction or claim
 against Landlord.

          11.  Tenant has not assigned, sublet or transferred its interest in
 the Lease and/or the Premises, or any part thereof.

          12.  Tenant has accepted possession of the Premises and occupies the
 entire Premises under the Lease.

          13.  Tenant has no right or option to expand the Premises, to lease
 additional space at the Property or to relocate to different space, except
 that Tenant has a right of first refusal or other right(s) to lease the
 following space at the Property (if none, state none): NONE.

          14.  Tenant has no option or right pursuant to the Lease or otherwise
 to purchase the Property, or any part thereof.

          15.  Tenant has the non-exclusive tight to use or occupy a total of 22
 parking spaces at no additional cost to Tenant.

          16.  Neither the Lease nor any obligations of Tenant thereunder have
 been guaranteed by any person or entity, except as follows (if none, state
 none): NONE (the "Guarantor(s)").

          17.  No bankruptcy or insolvency proceedings are pending by or against
 Tenant or any Guarantor and no bankruptcy or insolvency proceedings are
 contemplated by Tenant or, to the best of Tenant's knowledge, any Guarantors.

          18.  There is no outstanding material: I dispute of any nature between
 Tenant and Landlord in respect of the Lease.

          19.  Landlord has completed all maintenance items which are the
 responsibility of Landlord pursuant to the terms of the Lease.

          20.  Tenant has not stored, generated, used or otherwise dealt with,
 and will not store, generate, use or otherwise deal with, in the Premises or on
 the Property, any "hazardous or toxic substances," or contaminants, oil,
 pesticides, radioactive or other materials the removal or maintenance of which
 is prohibited, regulated or penalized by any local, state or federal agency,
 authority or governmental unit, except those clearing supplies and other
 similar products which are otherwise used in the normal course of Tenant's
 current permitted use of the Premises, all of which are used and stored by
 Tenant in accordance with applicable law.

          21.  No commission or other payment is due to any real estate broker,
 consultant or agent by Tenant in connection with the leasing of the Premises to
 Tenant. There are no agreements, oral or
<PAGE>

 written, under which any real estate broker, consultant or agent is entitled to
 any future payment or commission by Tenant in connection with the leasing of
 the Premises to Tenant, including, without limitation, any current or future
 renewal or expansion of the Lease, or expansion of the Premises.

          22.  Tenant has not caused any new construction or major repair work
 to be performed in the Premises or on the Property for at least one hundred
 twenty (120) days, or, if performed, the costs of such work have been paid in
 full. Tenant has not contracted for any labor to be supplied to the Property,
 or for any materials to be delivered thereto, that might become the subject
 of a lien upon the Property and that have not been paid for in full.

          23.  Tenant is in full compliance with its obligations under the
 Lease to maintain the insurance policies and coverage required therein. Tenant
 agrees to amend said insurance coverage to name Purchaser thereunder as
 ________________ __ (additional insured/payee).

          24.  In the event that Lender succeeds to the interest of Landlord or
 any successor to Landlord, then Tenant hereby agrees to attorn to and accept
 Lender and to recognize Lender as its landlord under the Lease for the then
 remaining balance of the term thereof, and upon request of Lender, Tenant
 shall execute and deliver to Lender an agreement of attornment reasonably
 satisfactory to Lender.

          25.  The address for all notices required to be delivered to Tenant
 (and any other party required to receive copies of any notices) under the Lease
 is as follows:

                           _____ ______________
                           _____ ______________
                           _____ ______________
                           _____ ______________

          The statements contained herein may be relied upon by Purchaser,
 Lender and their respective successors and assigns. The undersigned person
 hereby certifies that he or she is duly authorized to execute and deliver this
 Tenant Estoppel Certificate on behalf of Tenant.

                                     TENANT:

                                     CERTICOM CORPORATION

Date:______________,200_             By /s/ Richard Brownstein
                                        -------------------------
                                        Name:  RICHARD BROWNSTEIN
                                        Title: SVP + CFO
<PAGE>

                                 EXHIBIT E

                            RULES & REGULATIONS

           1.  The water and wash closets and other plumbing fixtures shall not
 be used for any purposes other than those for which they were constructed, and
 no sweepings, rubbish, rags or other substances (including, without limitation,
 coffee grounds) shall be thrown therein. All damages resulting from misuse of
 the fixtures shall be borne by Tenant if Tenant or its servants, employees,
 agents, visitors or licensees shall have caused the same.

           2.  No cooking (except for hot-plate and microwave cooking by
 Tenants' employees for their own consumption, the location and equipment of
 which is first approved by Landlord), sleeping or lodging shall be permitted by
 any tenant on the Premises. No tenant shall cause or permit any unusual or
 objectionable odors to be produced upon or permeate from the Premises.

           3.  No inflammable, combustible, or explosive fluid, material,
 chemical or substance shall be brought or kept upon, in or about the Premises.
 Fire protection devices, in and about the Building, shall not be obstructed or
 encumbered in any way.

           4.  Canvassing, soliciting and peddling in the Building is prohibited
 and each tenant shall cooperate to prevent the same.

           5.  There shall not be used in any space, or in the public halls of
 the Building, either by any tenant or by its agents, contractors, jobbers or
 others, in the delivery or receipt of merchandise, freight, or other matters,
 any hand trucks or other means of conveyance except those equipped with
 rubber tires, rubber side guards, and such other safeguards as Landlord may
 require, and Tenant shall be responsible to Landlord for any loss or damage
 resulting from any deliveries to Tenant in the Building. Deliveries of mail,
 freight or bulky packages shall be made through the freight entrance or through
 doors specified by Landlord for such purpose.

           6.  Mats, trash or other objects shall not be placed in the public
 corridors. The sidewalks, entries, passages, elevators, public corridors and
 staircases and other parts of the Building which are not occupied by Tenant
 shall not be obstructed or used for any other purpose than ingress or egress.

           7.  Tenant shall not install or permit the installation of any
 awnings, shades, draperies and/or other similar window coverings, treatments or
 like items visible from the exterior of the Premises other than those approved
 by Landlord in writing.

          8.   Tenant shall not construct, maintain, use or operate within said
 Premises or elsewhere in the Building or on the outside of the Building, any
 equipment or machinery which produces music, sound or noise which is audible
 beyond the Premises.

          9.   Bicycles, motor scooters or any other type of vehicle shall not
 be brought into the lobby or elevators of the Building or into the Premises
 except for those vehicles which are used by a physically disabled person in the
 Premises.

          10.  All blinds for exterior windows shall be building standard and
shall be maintained by Tenant.

          11.  No additional locks shall be placed upon doors to or within the
 Premises except as shall be necessary adequately to safeguard confidential
 documents stored within the Premises. Landlord shall be given keys to any
 internal door on which an additional lock is placed by Tenant. The doors
 leading to the corridors or main hall shall be kept closed during business
 hours, except as the same may be used for ingress or egress.

          12.  Tenant shall maintain and clean all areas or rooms within the
Premises in which security classified work is being conducted or in which such
work is stored; Landlord shall not provide standard janitorial service to such
areas, the provisions of Section 9 of the Lease notwithstanding.

          13.  Landlord reserves the right to shut down the air conditioning,
 electrical systems, heating, plumbing and/or elevators when necessary by
 reason of accident or emergency, or for repair, alterations, replacements or
 improvement.

          14.  No carpet, rug or other article shall be hung or shaken out of
 any window of the Building; and Tenant shall not sweep or throw or permit to be
 swept or thrown from the Premises any dirt or other substances into any of the
 corridors or halls, elevator, or out of the doors or windows or stairways of
 the Building. Tenant shall not use, keep or permit to be used or kept any foul
 or noxious gas or substance in the Premises, or permit or suffer the Premises
 to be occupied or used in a manner offensive or objectionable to Landlord or
 other occupants of the Building by reason of noise, odors and/or vibrations, or
 interfere in any way with other Tenants or those having business therein, nor
 shall any animals or birds be kept in or about the Building. Smoking or
 carrying lighted cigars or cigarettes in the elevators of the Building is
 prohibited.
<PAGE>

          15.  Landlord reserves the right to exclude from the Building on
 weekdays between the hours of 6:00 p.m. and 8:00 a.m. and at all hours on
 weekends and legal holidays, all persons who do not present a pass to the
 Building signed by Landlord; provided, however, that reasonable access for
 Tenant's employees and customers shall be accorded. Landlord will furnish
 passes to persons for whom Tenant requires same in writing. Tenant shall be
 responsible for all persons for whom it requests such passes and shall be
 liable to Landlord for all acts of such persons.

          16.  Tenant agrees to keep all windows closed at all times and to
 abide by all rules and regulations issued by Landlord with respect to the
 Building's air conditioning and ventilation systems.

          17.  Tenant will replace all broken or cracked interior plate glass
 windows and doors at its own expense, with glass of like kind and quality,
 provided that such windows and doors are not broken or cracked by Landlord, its
 employees, agents or contractors.

          18.  In the event it becomes necessary for Landlord to gain access to
the underfloor electric and telephone distribution system for purposes of adding
or removing wiring, then upon request by Landlord, Tenant agrees to temporarily
remove the carpet over the access covers to the underfloor ducts for such period
of time until work to be performed has been completed. The cost of such work
shall be borne by Landlord except to the extent such work was requested by or is
intended to benefit Tenant or the Premises, in which case the cost shall be
borne by Tenant.

          19.  Violation of these rules, or any amendments thereof or additions
thereto, may be considered a default of Tenant's lease and shall be sufficient
cause for termination of the Lease at the option of Landlord.<PAGE>

                                                                    EXHIBIT 10.2

                          INDUSTRIAL/COMMERCIAL LEASE

                         PAULS PROPERTIES CORPORATION
                                  (Landlord)

                                      AND

                                CERTICOM CORP.
                                   (Tenant)

Building:                1980 Matheson Blvd. East, Mississauga
Rentable Area:           126,962 Square Feet
Term:                    Ten (10) years

                              MILLER THOMSON LLP
                           Barristers and Solicitors
                       Suite 2500, 20 Queen Street West
                               Toronto, Ontario
                                    M5H 3S1
<PAGE>

                                                                               i

TABLE OF CONTENTS
-----------------

<TABLE>
<S>                                                            <C>
ARTICLE I - BASIC LEASE TERMS

   Section 1.01          Variable Defined Terms
   Section 1.02          Standard Definitions

ARTICLE II - LEASED PREMISES - TERM - RENT

   Section 2.01          Leased Premises and Term
   Section 2.02          Use of Additional Areas - Intentionally Deleted
   Section 2.03          Construction of the Leased Premises
   Section 2.04          Adjustment of Areas
   Section 2.05          Agreement to Pay
   Section 2.06          Basic Rent
   Section 2.07          Late Payment Charge
   Section 2.08          Net Lease
   Section 2.09          Acknowledgement of Commencement Date

ARTICLE III - TAXES AND OPERATING COSTS

   Section 3.01          Taxes Payable by Landlord
   Section 3.02          Tenant's Share of Taxes
   Section 3.03          Tenant's Share of Operating Cost
   Section 3.04          Management Fee
   Section 3.05          Tenant's Taxes
   Section 3.06          Tenant's Responsibility
   Section 3.07          Payment of Estimated Taxes, Operating Costs and
                         Management Fee

ARTICLE IV - LEASED PREMISES - CONTROL AND SERVICES

   Section 4.01          Control of the Leased Premises by the Landlord
   Section 4.02          Substitution of Management by Tenant
   Section 4.03          Tenant's Unrestricted Access

ARTICLE V - UTILITIES AND ADDITIONAL SERVICES

   Section 5.01          Charges for Utilities
   Section 5.02          Additional Services of the Landlord
   Section 5.03          Third Party Services

ARTICLE VI - USE OF LEASED PREMISES

   Section 6.01          Use of the Leased Premises
   Section 6.02          Observance of Law
   Section 6.03          Energy Conservation
   Section 6.04          Odours, Dust or Noise
   Section 6.05          Obstructions
   Section 6.06          Outside Areas
   Section 6.07          Environmental Law

ARTICLE VII - INSURANCE AND INDEMNITY

   Section 7.01          Tenant's Insurance
   Section 7.02          Increase in Insurance Premiums
   Section 7.03          Cancellation of Insurance
   Section 7.04          Loss or Damage
   Section 7.05          Landlord's Insurance
</TABLE>
<PAGE>

                                                                              ii
<TABLE>
<S>                                                                   <C>
   Section 7.06          Indemnification of the Landlord
   Section 7.07          Limitations of Liability

ARTICLE VIII - MAINTENANCE, REPAIRS AND ALTERATIONS

   Section 8.01          Maintenance and Repairs by the Tenant
   Section 8.02          Landlord's Approval of the Tenant's Repairs and
                         Alterations
   Section 8.03          Maintenance and Repairs by the Landlord
   Section 8.04          Surrender of the Leased Premises
   Section 8.05          Repair Where the Tenant is at Fault
   Section 8.06          Tenant No to Overload Facilities
   Section 8.07          Tenant No to Overload Floors
   Section 8.08          Removal and Restoration by Tenant
   Section 8.09          Notice by the Tenant
   Section 8.10          Tenant to Discharge All Liens
   Section 8.11          Signs and Advertising

ARTICLE IX - DAMAGE AND DESTRUCTION

   Section 9.01          Destruction of the Leased Premises
   Section 9.02          Abrogation - Intentionally Deleted

ARTICLE X - TRANSFER AND SALE

   Section 10.01         Assigning and Subletting
   Section 10.02         Landlord's Right to Terminate
   Section 10.03         Conditions of Transfer
   Section 10.04         No Advertising of the Leased Premises
   Section 10.05         Assignment by the Landlord

ARTICLE XI - ACCESS AND ALTERATIONS

   Section 11.01         Right of Entry
   Section 11.02         Right to Show Leased Premises
   Section 11.03         Entry Not Forfeiture
   Section 11.04         Landlord's Covenant For Quiet Enjoyment
   Section 11.05         Inspection

ARTICLE XII - STATUS STATEMENT, ATTORNMENT AND SUBORDINATION

   Section 12.01         Status Statement
   Section 12.02         Subordination and Attornment
   Section 12.03         Attorney
   Section 12.04         Financial information
   Section 12.05         Acknowledgment of Title

ARTICLE XIII - DEFAULT

   Section 13.01         Right to Re-Enter
   Section 13.02         Right to Re-Let
   Section 13.03         Termination
   Section 13.04         Accelerated Rent
   Section 13.05         Expenses
   Section 13.06         Waiver of Exemption from Distress
   Section 13.07         Landlord May Cure Tenant's Default or Perform Tenant's
                         Covenants
   Section 13.08         Additional Rent
   Section 13.09         Remedies Generally
   Section 13.10         Holding Over
   Section 13.11         No Waiver

ARTICLE XIV - MISCELLANEOUS
</TABLE>
<PAGE>

                                                                             iii

<TABLE>
<S>                                                                                  <C>
   Section 14.01         Rules and Regulations
   Section 14.02         Security Deposit
   Section 14.03         Pest Control
   Section 14.04         Obligations as Covenants
   Section 14.05         Amendments and Supplementary Lease Provisions (if any)
   Section 14.06         Certificates
   Section 14.07         Time
   Section 14.08         Successors and Assigns
   Section 14.09         Governing Law
   Section 14.10         Headings
   Section 14.11         Entire Agreement
   Section 14.12         Severability
   Section 14.13         No Option
   Section 14.14         Occupancy Permit
   Section 14.15         Place for Payments
   Section 14.16         Extended Meanings
   Section 14.17         No Partnership or Agency
   Section 14.18         Unavoidable Delay
   Section 14.19         Consent and Approvals
   Section 14.20         Registration
   Section 14.21         Joint and Several Liability
   Section 14.22         Name of Building
   Section 14.23         Changes in the Leased Premises
   Section 14.24         Compliance with the Planning Act

ARTICLE XV - INDEMNITY AGREEMENT

   Section 15.01         Indemnity - Intentionally Deleted
   Section 15.02         Further Assurances

SCHEDULES

           Schedule "A"  - Draft Site Plan of Building and Lands
           Schedule "Al" - Building Elevation
           Schedule "B1" - Legal Description of Lands
           Schedule "B2" - Lega1 Description of Expansion Lands
           Schedule "B3" - Plan Showing the Lands and the Expansion Land
           Schedule "C"  - Plan/Sketch of Expansion Land
           Schedule "D"  - Acknowledgment of Commencement Date
           Schedule "E"  - Rules and Regulations
           Schedule "F"  - Supplementary or Additional Lease Terms
           Schedule "G"  - Incorporated Excerpts from Agreement to Lease
</TABLE>
<PAGE>

                                                                              iv

ARTICLE 1
---------

BASIC LEASE TERMS
-----------------

SECTION 1.01 - VARIABLE DEFINED TERMS

          In this Lease the following terms will have the following meanings:

          (1) "Agreement to Lease" means the written agreement to lease between
               ------------------
          the Landlord and the Tenant with respect to the Leased Premises dated
          the 6/th/ day of October, 2000.

          (2) "Basic Rent" - means:
               ----------

                    (i)  In years 1 and 2 of the Term $10.85
              (ii)  In years 3-5 of the Term $11.75
              (iii) In years 6-10 of the Term $13.05

          in each case per square foot of the Rentable Area of the Building,
per annum, payable pursuant to Section 2.06 hereof.

(3)  "Building" means the entire one story building and all other improvements
      --------
located on the Lands, and known municipally as 1980 Matheson Boulevard East,
Mississauga, and includes all additions, modifications and alterations thereto
and replacements thereof, as may be from time to time constructed in
accordance with the provisions of the Lease.

(4)  "Commencement Date" means that day which is one hundred and twenty (120)
      -----------------
days next following the date of completion of the Landlord's Work, as defined
in Section 8.1 of the Agreement to Lease, as such date made be adjusted in
accordance with the provisions of Section 2.03 of this Lease and confirmed or
acknowledged by the Landlord and the Tenant in accordance with the provisions
of Section 2.09 hereof.

(5)  "Expansion Lands" means those adjacent, vacant lands located to the south
      ---------------
of the Lands and comprising approximately 6.3 acres, all as described in
Schedule "B2" attached hereto and shown outlined on Schedule "C" attached
hereto.

(6)  "Fiscal Period" means a calendar year or any other twelve (12) month period
      -------------
designated by the Landlord from time to time as the Landlord's fiscal period
for accounting purposes and as the period in respect of which Operating Costs
for the Leased Premises are to be estimated, allocated and adjusted in
accordance with Section 3.07 hereof.

(7)  "Indemnifier" - Intentionally Deleted.
      -----------

(8)  "Indemnifier's Address" - Intentionally Deleted.
      ---------------------

(9)  "Landlord" PAULS PROPERTIES CORPORATION. and its successors and assigns.
      --------

(10) "Landlord's Address" - 2355 Skymark Avenue, Suite 300, Mississauga,
      ------------------
Ontario L4W 4Y6 or such other address as is designated by the Landlord.

(11) "Lease" means this lease dated the 12th day of October, 2000, and includes
      -----
the Schedules, as from time to time amended in writing.

(12) "Leased Premises"- means those premises leased to the Tenant pursuant to
      ---------------
Section 2.01 hereof, comprising the Lands and the Building.

(13) "Rentable Area of the Building" - means the Rentable Area of the Building,
      -----------------------------
being approximately 126,962 square feet of area determined in accordance with
Section 1.02(18) hereof, and subject to adjustment in accordance with Section
2.04 hereof.

(14) "Schedules" means the Schedules attached to and forming part of this Lease,
      ---------
being the following:

     Schedule "A" -  Draft Site Plan of Building and Lands
     Schedule "A1" - Building Elevation
     Schedule "B1" - Legal Description of Lands
     Schedule "B2" - Legal Description of Expansion Lands
     Schedule "B3" - Plan Showing the Lands and the Expansion Land
<PAGE>

                                                                               2

         Schedule "C" -  Plan/Sketch of Expansion Land
         Schedule "D" -  Acknowledgment of Commencement Date
         Schedule "E" -  Rules and Regulations
         Schedule "F" -  Supplementary or Additional Lease Terms
         Schedule "G" -  Incorporated Excerpts from Agreement to Lease

               (15)   "Security Deposit" means the sum of THREE HUNDRED THOUSAND
                       ----------------
               CANADIAN DOLLARS (CDN$300,000.00) or such portion or balance
               thereof as may from time to time remain in the Landlord's hands
               applied in accordance with Section 14.02.

               (16)   "Tenant" - Certicom Corp. and its successors and permitted
                       ------
               assigns.

         (17)  "Tenant's Address" - Prior to the Commencement Date, Certicom
                ----------------
               Corp., 5520 Explorer Drive, 4/th/ Floor, Mississauga, Ontario,
               L4W 5L1, Attention: Robert L. Williams, Senior Vice-President
               (with a copy to: Certicom Corp., 25801 Industrial Blvd., Hayward
               CA 94545, USA, Attention: Richard Brounstein, Senior-Vice
               President, Finance) or such other address as is designated by the
               Tenant and from and after the Commencement Date, the Leased
               Premises.

         (18)  "Term" - means the term of ten (10) years, commencing on the
                ----
               Commencement Date, together with any renewal or extension thereof
               permitted hereunder.

               (19)   "Type of Business of the Tenant" means that the Leased
                       ------------------------------
               Premises shall only be used for any use which complies with all
               applicable laws, by-laws, regulations or other governmental
               ordinances from time to time in existence, including, without
               limitation, warehouse, ancillary storage, light assembly and
               office uses.

SECTION 1.02 - STANDARD DEFINITIONS

         (1)   "Additional Rent" means all sums of money, other than Basic Rent,
                ---------------
               which are required to be paid by the Tenant pursuant to any
               provision of this Lease.

         (2)   "Additional Service" means any service which is requested or
                ------------------
               required by or for the Tenant in addition to those supplied by
               the Landlord as part of the normal services provided to or in the
               Leased Premises, and which the Landlord is prepared or elects to
               supply at an additional cost to the Tenant and includes, without
               limitation, janitor and cleaning services, the provision of
               labour and supervision in connection with deliveries, supervision
               in connection with the moving of any furniture or equipment of
               the Tenant, the making of any repairs or alterations by the
               Tenant and the cost of replacing building standard electric light
               fixtures, ballasts, tubes, starters, lamps and light bulbs.

         (3)   "Additional Service Cost" means the additional cost payable by
                -----------------------
               the Tenant to the Landlord for any Additional Service in
               accordance with Section 5.02 hereof.

         (4)   "Architect" means the architect, professional engineer or
                ---------
               surveyor named by the Landlord from time to time.

         (5)   "Bank Rate" means the interest rate per annum as announced by the
                ---------
               chartered bank of the Landlord at the principal office of such
               bank in Toronto and reported by it to the Bank of Canada as its
               prime rate.

               (6)    "Capital Tax" means the aggregate of:
                       -----------

         (a)   an amount of the tax or excise imposed by the Province of Ontario
                              upon the Landlord or the owners of the Leased
                              Premises which is measured by or based in whole or
                              in part upon the capital, surplus, reserves or
                              indebtedness of such Landlord or owners, and which
                              is at present based upon the application of the
                              prescribed rate of 0.3% to the amount of such
                              Landlord's or owner's "taxable paid-up capital" as
                              defined in the Corporations Tax Act (Ontario); the
                              amount of the tax or excise for the purposes
                              hereof shall be calculated in any year as if the
                              Building was the only establishment in the
                              Province of Ontario owned by such Landlord or
                              owners in the year and such Landlord or owners had
                              no establishment other than in the Province of
                              Ontario; and

         (b)   an amount of the tax or excise imposed by the Government of
                              Canada upon the Landlord or the owners of the
                              Leased Premises which is measured by or based in
                              whole or in part upon the capital, surplus,
                              reserves or indebtedness of the Landlord or the
                              owners, and which tax is at present based upon the
<PAGE>

                                                                               3

                              application of the prescribed rate of 0.2% to the
                              amount by which the "taxable capital employed in
                              Canada" by such Landlord or owners as defined in
                              the Income Tax Act (Canada) exceeds its capital
                              deduction for the year; the amount of the tax or
                              excise for the purposes hereof shall be calculated
                              in any year as if the Leased Premises was the only
                              asset owned by such Landlord or owners in the year
                              and the capital deduction of such Landlord or
                              owners for the year was nil;

Provided that for the purpose of computing Capital Tax as otherwise defined in
this Subsection 1.02(6), the Landlord agrees to allocate such Capital Tax
equitably among any corporations within Canada which are related to or
affiliated with the Landlord, if any (and for the propose of this Subsection
"affiliate" shall have the meaning set out in the Ontario Business Corporations
Act) and provided that if the Landlord owns other permanent establishments in
Canada, the Landlord agrees that Capital Taxes shall be calculated without
duplication and shall be reduced by an amount equal to the taxable paid up
capital employed by the Landlord in such other permanent establishments that are
located in Canada but outside of the Province of Ontario.

         (7)   "Insurance Cost" means, for any fiscal period, the total cost to
                --------------
               the Landlord calculated in accordance with generally, accepted
               accounting principles, for insuring the Leased Premises.

         (8)   "Insured Damage" means that part of any damage occurring to the
                --------------
               Leased Premises, of which the entire cost of repair (except as to
               any deductible amount provided for in the applicable policy or
               policies of insurance) is actually recovered by the Landlord
               under a policy or policies of insurance from time to time
               effected by the Landlord or which ought to have been effected by
               the: Landlord pursuant hereto.

         (9)   "Lands" means the lands described in Schedule "B1" attached
                -----
               hereto comprising approximately 7.3 acres in area.

         (10)  "Law" means:
                ---

               (i)   all federal, provincial, regional, municipal or local laws,
                                   statutes regulations, orders or ordinances;
                                   and

               (ii)  all policies, guidelines, decisions, notices or directives
                                   issued by any federal, provincial, regional,
                                   municipal or local government or authority or
                                   other political subdivision thereof and any
                                   entity or person exercising executive,
                                   legislative, judicial, regulatory or
                                   administrative functions of, or pertaining
                                   to, government which may be relevant to this
                                   Lease and in particular to the construction,
                                   operation, maintenance and replacement of the
                                   Building and/or to the conduct by the Tenant
                                   of its business therefrom.

         (11)  "Leasehold Improvements" means all items generally considered as
                ----------------------
               leasehold improvements, including, without limitation, all
               fixtures, equipment, improvements, installations, alterations and
               additions from time to time made, erected or installed by or on
               behalf of the Tenant, or any previous occupant of the Leased
               Premises in the Leased Premises, including all partitions,
               however affixed and whether or not movable, and all wall-to-wall
               carpeting other than carpeting laid over finished floors and
               affixed so as to be readily removable without damage; but
               excluding trade fixtures, unattached furniture or free-standing
               partitions and equipment not of the nature of fixtures.

         (12)  "Management Fee" means a reasonable fee for the administration
                --------------
               and management of the Leased Premises which fee shall be
               comparable to fees charged by management companies for managing
               and administering developments similar to the Leased Premises,
               which fees shall in no event exceed the amount of sixty cents (60
               cents) per square foot of Rentable Area of the Building per
               annum, in respect of the first five (5) years of the Term
               commencing on the Commencement Date, and seventy-five cents (75
               cents) per square foot of Rentable Area of the Building per annum
               in respect of the next five (5) years of the Term, commencing on
               the fifth anniversary of the Commencement Date.

         (13)  "Mortgage" means any mortgage, instrument of hypothec, deed of
                --------
               trust, document or security interest (resulting from any method
               of financing or refinancing) or blanket
<PAGE>

                                                                               4

           mortgage, pledge or charge (affecting the Lands as well as other
           property) now or hereafter secured upon the Lands or any part
           thereof, and includes all renewals, modifications, consolidations,
           replacements and extensions thereof.

     (14)  "Mortgagee" means the mortgagee, hypothecary or other creditor or
            ---------
           trustee for bondholders or others named in any Mortgage.

     (15)  "Notice" means any notice, statement, consent, approval, demand or
            ------
           request herein required or permitted to be given by any party to
           another pursuant to this Lease and shall be in writing and, if to the
           Landlord, addressed to the Landlord at the Landlord's Address, if to
           the Tenant, addressed to the Tenant at the Tenant's Address, and if
           to any Indemnifier, addressed to the Indemnifier at the Indemnifier's
           Address. All Notices shall be hand-delivered and the effective date
           of such Notices shall be the date of delivery.

     (16)  "Operating Costs" means the total of all expenses, costs, fees,
            ---------------
           rentals, disbursements and outlays of every kind paid, payable or
           incurred by or on behalf of the Landlord in the complete maintenance,
           repair, operation, supervision, replacement and administration of the
           Leased Premises. Without limiting the generality of the foregoing,
           Operating Costs shall include, without duplication the following
           costs in respect of the Leased Premises:

     (A)   (i)    the Insurance Cost;

           (ii)   the cost of providing security, supervision, life safety
                              systems, traffic control, landscaping, exterior
                              cleaning and snow removal services;

           (iii)  the cost of water, electric light and power, telephone, steam,
                              gas, sewage disposal and other utilities and
                              services;

                       (iv)   the cost of maintaining and replacing any general
                              sign or directory board;

           (v)    accounting costs incurred in connection with the maintenance,
                              repair, replacement, operation, administration or
                              management of the Leased Premises, including
                              computations required for the imposition of
                              charges to Tenant, the cost of preparing
                              statements and opinions for tenants and banking
                              fees and expenses and audit fees;

     (vi)  subject to Subsection 1.02(16)A(xii) hereof, the cost of performing
                              the Landlord's repair obligations under Section
                              8.03;

           (vii)  all other indirect expenses to the extent reasonably
                              allocable to the maintenance, repair,
                              replacement, operation, administration or
                              management of the Leased Premises;

           (viii) all costs and expenses (including legal and other
                              professional fees and interest and penalties on
                              deferred payments) incurred by the Landlord in
                              contesting, resisting or appealing any Taxes in
                              good faith;

           (ix)   subject to the provisions of Subsection 1.01(16)A(xii)
                              hereof, amounts paid to independent contractors
                              for any services in connection with the
                              maintenance, repair, replacement, operation,
                              administration or management of the Leased
                              Premises or any part of it;

           (x)    fees and expenses of architects, engineers, quantity surveyors
                              and other consultants retained by the Landlord;

     (xi)  subject to the provisions of Subsection 1.02(16)A(xii) hereof, the
                              costs of supplies, tools, equipment and materials
                              used in connection with the maintenance, repair,
                              replacement, operation, administration, management
                              or caretaking of the Leased Premises;

     (xii) amortization (over the useful life of any item in accordance with
                              generally accepted accounting principles) of costs
                              properly regarded as capital in nature, including,
                              without limitation, the costs incurred to make
                              alterations, replacements or additions to the
                              Leased Premises intended to reduce the cost of
                              other items included in Operating Costs, improve
                              the operation of the Leased Premises or maintain
                              its operation as a quality industrial complex,
                              costs being amortized will include, without
                              limitation, costs incurred in respect of
                              alterations, replacements or additions to the roof
                              and
<PAGE>

                                                                               5

                              other structural elements of the Building or
                              Building systems, and property installed in or
                              used in connection with the Leased Premises
                              (except to the extent that the costs are charged
                              fully to income account in the accounting period
                              in which they are incurred) and interest on the
                              unamortized portion of the original cost of such
                              items being amortized, payable monthly, from or
                              after the date on which the relevant cost was
                              incurred at an annual rate of interest that is one
                              percentage (1%) point above the Bank Rate in
                              effect from time to time; the amortization costs
                              and interest charged under this clause shall be
                              calculated by the Landlord, acting reasonably, in
                              accordance with sound and generally accepted
                              accounting principles, but no amortization or
                              interest will be charged in respect of any such
                              items installed in conjunction with the original
                              construction of the Leased Premises;

     (xiii)  goods and services taxes, business transfer taxes, value-added
                              taxes, multi-stage sales taxes, sales, use or
                              consumption taxes and any like taxes on property
                              and services provided by or on behalf of the
                              Landlord except to the extent recoverable by the
                              Landlord;

             (xiv) Capital Tax in respect of the Leased Premises, any Ontario
                              commercial concentration tax and any business or
                              similar taxes or licence fees in respect of the
                              business of the Landlord which pertains to the
                              management, operation and maintenance of the
                              Complex;

     (xv)    subject to the provisions of Subsection 1.02(16)A(xii) hereof,
                              all other direct and indirect costs and expenses
                              of every kind, to the extent incurred in or
                              allocable to the maintenance, repair, replacement,
                              operation, supervision or administration of all or
                              any part of the Leased Premises, or any of its
                              appurtenances including expenses incurred or
                              contributions made by the Landlord in respect of
                              off-site facilities which are utilized by or
                              benefit the Leased Premises;

     (B)     notwithstanding the provisions of Part (A) of this definition,
             Operating Costs shall exclude or shall have deducted therefrom:

             (i)    Taxes and Management Fee;

             (ii)   debt service in respect of financing secured by or related
                              to the Leased Premises and interest on debt save
                              for interest payable if and when costs and
                              expenses in respect of Operating Costs and Taxes
                              and goods and services taxes temporarily exceed
                              recoveries from time to time in respect thereof;

                    (iii) depreciation of the initial cost of the Leased
                              Premises;

             (iv)   an amount equal to the net proceeds of insurance actually
                              recovered by the Landlord for damage to the
                              Building to the extent that the cost to repair
                              such damage is included in Operating Costs;

             (v)    an amount equal to recoveries by the Landlord in respect of
                              warranties or guarantees relating to repairs or
                              alterations to the Leased Premises or any part of
                              it, including, without limitation, construction
                              warranties to the extent that the repair or
                              alteration costs in respect of the work covered by
                              warranty or guarantee is included in Operating
                              Costs;

     (vi)    an amount equal to the contribution made by any owners or occupants
                              of adjacent buildings who are, by agreement,
                              entitled to use any facilities of and for the
                              Leased Premises;

     (vii)   all income tax or similar taxes, corporation taxes, profits taxes,
                              excess profits taxes, place of business taxes,
                              gift taxes, estate taxes, succession taxes,
                              inheritance taxes, franchise taxes, land transfer
                              taxes and non-
<PAGE>

                                                                               6

               resident sales taxes, business taxes (other than those business
               taxes specifically payable by the Tenant pursuant to the lease)
               and other taxes personal to the Landlord;

(viii)    ground rent (if any), amortization and interest on and capita1
               retirement of debt, affecting all or any of the Lands and
               Building;

(ix)      any loss or damage to all or any part of the Building or any persona1
               injury for which the Landlord is insured under the terms of the
               Lease including any deductible, but only to the extent of
               recoveries under such insurance;

(x)      any cost or expense which is normally treated in accordance with
               generally accepted accounting principles as being of a capita1
               nature, which cost or expense will instead be amortized over
               useful life of the item and charged to the Tenant in accordance
               with generally accepted accounting principles, all in accordance
               with Subsection 1.02(16)A(xii) hereof;

(xi)     commissions, advertising costs, the costs of any market research,
               traffic consumer attitude study or legal expenses in connection
               with leasing the Building or legal remedies against tenants
               (other than the Tenant) or any part thereof;

(xii)    all penalties or carrying charges relating to late payment of taxes
               or other expenses and any capital, interest or other carrying
               charges on any mortgages or equipment head or land lease or
               equipment lease payments or other financing with respect to the
               Lands and/or Building or any part thereof;

(xiii)   all fines, suits, claims, demands, actions, costs, charges and
               expenses of any kind or nature for which the Landlord is or may
               become liable by reason of any negligent or willful acts or
               omissions to act on the part of the Landlord or those for whom it
               is in law responsible or by reason of any breach or violation or
               non-performance by the Landlord of any covenant, term or
               provision contained in the leases and other agreements entered
               into by the Landlord in respect of the Building or the Lands;

(xiv)    except as expressly provided herein to the contrary, the expenses
               incurred by the Landlord in respect of installation or removal of
               any of the Tenant's improvements or the Allowance (as defined in
               Section 84 of the Agreement to Lease);

(xv)     all work to the Leased Premises or the Building or any part thereof
               made necessary by the Landlord's non-compliance with Laws;

(xvi)    the cost of initial construction of the Building and construction
               resulting from insured perils;

(xvii)   all salaries, whether direct or indirect, relating to the
               administration and management of the Building;

(xviii)  subject to the provisions of Section 6.07 hereof, remedial
               environmental costs for existing conditions in the soil, ground
               water or buildings; and

(xix)    fines and penalties assessed by a court or governmental agencies not
               caused by actions or omissions of the Tenant.

(C)      any costs that are not directly incurred by the Landlord but are
         chargeable as Operating Costs may be estimated by the Landlord on a
         reasonable basis to the extent that the Landlord cannot ascertain the
         exact amount; and

(D)      the taxes enumerated in Section 1.02(16)(A)(xiii) above are included
         amongst Operating Costs upon the understanding that the Landlord will
         look first for reimbursement of such taxes to its input tax credits in
         the case of the goods and services tax in force at the date hereof, and
         to corresponding credits, if any, in the case of subsequent taxes from
         time to time in force, the intent being that so long as such credits
         are available to the Landlord the taxes referred to in Section
         1.02(16)(A)(xiii) will not be included in Operating Costs.

(17)     "Rent" means Basic Rent and Additional Rent.
          ----
<PAGE>

                                                                               7

(18)     "Rentable Area" means the floor area expressed in square feet of all
          -------------
         floor space (including the floor space of mezzanines, if any) measured
         from the exterior face of all exterior walls (and across the extension
         of the planes thereof over the openings for doors and windows)
         comprising the boundaries of such premises and, in the case of walls
         separating any rentable premises from adjoining rentable premises,
         measured from the centre line of such walls but ignoring the finished
         treatment thereof; any such area shall be adjusted from time to time to
         reflect any addition, reduction, rearrangement or relocation of space.

(19)     "Taxes" means all taxes, rates, duties, levies, fees, charges, sewer
          -----
         levies, local improvement rates, and assessments whatsoever imposed,
         assessed, levied or charged, now or in the future, by any school,
         municipal, regional, provincial, federal, parliamentary or other
         governmental body, corporate authority, agency or commission
         (including, without limitation, school boards and utility commissions),
         against the Leased Premises or any part thereof, and/or the Landlord
         and/or the owners of the Leased Premises in connection therewith,
         calculated on the basis of the Leased Premises being assessed as a
         fully leased and operational building, but excluding (unless
         specifically referred to above):

(a)      income or profit taxes upon the income of the Landlord to the extent
                   such taxes are not levied in substitution or in lieu of any
                   of the foregoing;

(b)      business or similar taxes or licence fees in respect of the business
                   of the Landlord which pertains to the management, operation
                   and maintenance of the Leased Premises (and which are
                   included in Operating Costs);

(c)      goods and services taxes or similar taxes (and which are payable
                   pursuant to other provisions of this Lease);

(d)      business or similar taxes or licence fees in respect of any business
                   carried on by, and imposed upon, tenants and occupants
                   (including the Tenant) of the Leased Premises; and

(e)      Capital Tax in respect of the Leased Premises and any Ontario
                   commercial concentration tax (and which are included in
                   Operating Costs).

Provided that in the event that the Leased Premises is not the subject of a
         separate assessment, but is assessed together with other Lands owned by
         the Landlord, including, without limitation, the Expansion Lands,
         Taxes, otherwise defined above, shall mean that portion of all such
         taxes, rates, duties, levies, fees, charges, sewer levies, local
         improvement rates and assessments imposed, assessed, levied or charged
         against or in respect of such larger parcel of lands as are allocated
         to the Leased Premises from time to time by the Landlord acting
         reasonably and on an equitable basis having regard, amongst other
         things, to general principles of assessment and the value of the Leased
         Premises relative to all other lands and buildings, if any, comprising
         the larger parcel of lands to which the assessment relates.

(20)     "Tenant's Taxes" means al1 taxes, rates, duties, levies or license
          --------------
         fees imposed upon the Tenant which are attributable to the business,
         income or occupancy of the Tenant or any other occupant of the Leased
         Premises, including any taxes, rates, duties, levies or license fees
         which are imposed in lieu of or in addition to any such Tenant's Taxes;
         and if any such Tenant's Taxes are levied against the Landlord or any
         owner on account of its ownership in the Leased Premises or its
         interest therein, they shall be included in Taxes.

(21)     "Transfer" means an assignment of this Lease, a sublease of all or
          --------
         any part of the Leased Premises, any transaction whereby the rights of
         the Tenant under this Lease to the Leased Premises are transferred to
         another, any transaction by which any right of use or occupancy of all
         or any part of the Leased Premises is conferred upon anyone, any
         mortgage, charge or encumbrance of this Lease or the Leased Premises or
         any part thereof, or other arrangement under which either this Lease or
         the Leased Premises becomes security for any indebtedness or other
         obligations, and includes any transaction or occurrence whatsoever
         which has changed or might change the identity of the person or persons
         having lawful use or occupancy of any part of the Leased Premises but,
         for greater certainty, where the Tenant is a corporation, does not
         include any amalgamation,
<PAGE>

                                                                               8

               reorganization, or change in the effective voting control of the
               shares of the Tenant.

     (22)      "Unavoidable Delay" means any delay by a party in the performance
                -----------------
               of its obligation under this Lease caused in whole or in part by
               any acts of God, strikes, lockouts or other industrial
               disturbances, acts of public enemies, sabotage, war, blockades,
               insurrections, riots, epidemics, washouts, nuclear and radiation
               activity or fallout, arrests, civil disturbances, explosions,
               breakage of or accident to machinery, any legislative,
               administrative or judicial action which has been resisted in good
               faith by all reasonable legal means, any act, omission or event,
               whether of the kind herein enumerated or otherwise, not within
               the control of such party, and which, by the exercise of control
               of such party, could not have been prevented, but lack of funds
               on the part of such party shall not constitute an Unavoidable
               Delay.

ARTICLE II
----------

LEASED PREMISES - TERM - RENT
-----------------------------

SECTION 2.01- LEASED PREMISES AND TERM

     In consideration of the rents, covenants and agreements herein contained on
 the part of the Tenant to be paid, observed and performed, the Landlord leases
 to the Tenant, and the Tenant leases from the Landlord, the Leased Premises for
 the Term.

SECTION 2.02 - USE OF ADDITIONAL AREAS

     [Intentionally Deleted]

SECTION 2.03 - CONSTRUCTION OF THE LEASED PREMISES

     The provisions of Sections 8 (Landlord's and Tenant's Work), 16 (Landlord's
Covenants, Representations and Warranties), 21 (Expansion Land) and of Schedule
"F" (Tenant's Work) of the Agreement to Lease relating to the initial
construction of the Leased Premises and delay in availability of the Leased
Premises for occupancy by the Tenant (all of which are hereby incorporated
herein and with the exception of Section 21 are set out in Schedule "G" hereto)
shall remain in effect and shall not merge upon the execution of this Lease.
Subject to the above-noted provisions of the Agreement to Lease, the Landlord
shall deliver vacant and exclusive possession of the Leased Premises to the
Tenant on or before January 15, 2001, (the "Possession Date"). The Tenant
acknowledges and agrees, however, that certain work external to the Building,
including, without limitation, the landscaping and asphalting (as well as any
skylights in the Building in the event the Tenant has failed to provide drawings
in that regard to the Landlord on or before November 15, 2000) may not be
completed by the Possession Date. If the Landlord has not delivered vacant and
exclusive possession of the Leased Premises to the Tenant with Landlord's Work
complete on or before the Possession Date as a result of force majeure, then the
Possession Date, the Commencement Date and all other applicable dates will be
extended on the basis of one day for each day of delay. The Commencement Date
will not, however, be extended as a result of any delays caused by the Tenant
in selecting materials or requesting changes to the base building beyond the
dates set out herein (it being acknowledged that any material changes to
Landlord's Work must be both requested in writing by the Tenant and approved by
the Landlord). If the Possession Date is delayed beyond January 15, 2001, due to
circumstances within the Landlord's control, the Possession Date, the
Commencement Date, and all other applicable dates will be extended on the basis
of two days for each day of delay. Notwithstanding the foregoing or any other
provision of the Agreement to Lease or this Lease, if the Landlord has not
delivered vacant and exclusive possession of the Leased Premises, with the
Landlord's Work complete, to the Tenant by April 15 2001, for any reason
whatsoever, including force majeure, but excluding delays caused by the Tenant
in selecting materials or requesting changes to the base building beyond the
dates set forth herein, then upon ten (10) days' written notice, the Tenant
shall have the option to terminate this Lease and the Security Deposit shall be
returned to the Tenant, with interest as provided for herein and without
deduction. The Landlord shall permit the Tenant to occupy and possess the
Leased Premises from and after the Possession Date to the Commencement Date
completely free of all Basic Rent and Additional Rent obligations and the
Tenant shall be permitted to construct its Leasehold Improvements in the Leased
Premises during such period and to conduct its business thereafter. During any
such period of occupancy or possession prior to the Commencement Date, the
Tenant shall be nevertheless responsible to pay for all utilities supplied to
the Leased Premises and for snow plowing those parking areas selected by the
Tenant in its discretion for use by its contractors, suppliers, employees and
invitees. The Tenant shall abide by the provisions of Section 8.02 in respect
of the construction of Leasehold Improvements and fixtures in the Leased
Premises following the commencement of the Term.

SECTION 2.04 - ADJUSTMENT OF AREAS
<PAGE>

                                                                               9

          The Landlord shall, upon completion of the Landlord's Work as defined
in Section 8.1 of the Agreement to Lease and prior to the Commencement Date, re-
measure or re-calculate the Rentable Area of the Building in accordance with
current B.O.M.A. standards and shall deliver to the Tenant a certificate of the
Architect confirming such area and the Basic Rent and the amount of Additional
Rent shall be adjusted accordingly.

SECTION 2.05 - AGREEMENT TO PAY

          (a)  The Tenant shall pay Basic Rent and Additional Rent as herein
               provided in lawful money of Canada, without any prior demand
               therefor and without any deduction, abatement, set-off or
               compensation whatsoever save as provided in Section 9.01. The
               Tenant agrees to pay to the Landlord in addition to Basic Rent
               and Additional Rent, any goods and services tax, business
               transfer tax, value-added tax, multi-stage sales tax, sales, use
               or consumption tax, or any like tax imposed by any governmental
               authority in respect of this Lease, or in respect of any property
               or services provided hereunder, including, without limitation,
               such taxes calculated on or in respect of any Rent (whether
               Basic Rent or Additional Rent) payable under this Lease; any such
               tax shall be deemed not to be Rent, but the Landlord shall have
               the same remedies for and rights of recovery of such amount as it
               has for recovery of Rent under this Lease. The obligation to pay
               Additional Rent (and adjustments thereto) shall survive the
               expiration or sooner termination of this Lease. All amounts
               payable under this Lease, unless otherwise provided, become due
               with the next installment of Basic Rent. The Landlord may, at its
               option, upon Notice to the Tenant direct that the Tenant pay any
               or all Rent by way of pre-authorized bank debit and/or to any
               other party specified by the Landlord.

          (b)  Notwithstanding the provisions of Subsection 2.05(a) above, and
               notwithstanding that the Tenant may have been granted occupancy
               and possession of the entire Leased Premises from and after the
               Possession Date, as defined in Section 2.03 hereof, or the
               Commencement Date, the Tenant shall be required to pay Basic Rent
               and Additional Rent as and from the Commencement Date in respect
               only of the northern portion of the Building, containing not less
               than eighty thousand (80,000) square feet, (Phase 1). The
               Tenant's obligation to pay Basic Rent and Additional Rent in
               respect of the balance of the Leased Premises, containing
               approximately forty-six thousand nine hundred and sixty-two
               (46,962) square feet (Phase 2) shall commence on the earlier of
               December 1/st/, 2001, and the date on which the Tenant commences
               business operations within a substantial portion of Phase 2
               (which "business operations" shall, for greater certainty,
               exclude the construction by or on behalf of the Tenant of
               Leasehold Improvements therein) provided that in respect of each
               Phase, the Tenant shall nevertheless, as and from the Possession
               Date pay, as Additional Rent, the cost of all utilities supplied
               to the Leased Premises and for snow plowing, as provided for in
               Section 2.03 hereof.

SECTION 2.06 - BASIC RENT

     Subject to the provisions of Subsection 2.05(b) hereof, the Tenant shall
pay from and after the Commencement Date to the Landlord the Basic Rent, such
Basic Rent to be computed in accordance with Section 1.01(2) hereof and payable
in equal monthly installments in advance on the first day of each and every
month. As soon as reasonably possible after completion of construction of the
Leased Premises, as provided for in Section 2.04 hereof, the Landlord shall
measure the Rentable Area of the Leased Premises and only at such time shall any
necessary adjustments in the Basic Rent and Additional Rent be made.

     If the Commencement Date is not the first day of a calendar month, then the
Basic Rent for the first and last months of the Term shall be appropriately
adjusted, on a per diem basis, based upon a period of three hundred and sixty-
five (365) days and the Tenant shall pay upon the Commencement Date, the portion
of the Basic Rent so adjusted from the Commencement Date to the end of the month
in which the Commencement Date occurs.

SECTION 2.07 - LATE PAYMENT CHARGE
<PAGE>

                                                                              10

     The Tenant hereby acknowledges that late payment by the Tenant to the
Landlord of Basic Rent or Additional Rent due hereunder will cause the Landlord
to incur costs not contemplated by this Lease, the exact amount of which will be
difficult or impracticable to ascertain. Such costs include, but are not
limited to, processing and accounting charges and late charges which may be
imposed on the Landlord by the terms of any Mortgage. Accordingly, if any Basic
Rent or Additional Rent shall not be received by the Landlord or the Landlord's
designee within five (5) days after such amount shall be due, the Tenant shall
pay to the Landlord interest on such overdue amounts, calculated from the due
date to the date of payment at the rate of one percent (1%) per annum in excess
of the Bank Rate. The parties hereby agree that such late charge represents a
fair and reasonable estimate of the costs the Landlord will incur by reason of
late payment by the Tenant. Acceptance of such late charge by the Landlord shall
in no event constitute a waiver of the Tenant's default with respect to such
overdue amount, nor prevent the Landlord from exercising any of the other rights
and remedies granted hereunder. The foregoing shall be without prejudice to any
other right or remedy available to the Landlord under or pursuant to this Lease
by reason of a monetary default by the Tenant. The Tenant agrees that if any of
the Tenant's cheques are returned for lack of sufficient funds the Tenant shall
pay to the Landlord upon demand a minimum administrative fee of not less than
twenty-five dollars ($25.00).

SECTION 2.08 - NET LEASE

     The Basic Rent payable under this Lease is intended to be an absolutely net
return to the Landlord, except as expressly herein set out to the contrary. The
Landlord is not responsible for any expenses or outlays of any nature arising
from or relating to the Leased Premises, or the use or occupancy thereof, or the
contents thereof or the business carried on therein, except as expressly herein
set out to the contrary. The Tenant shall pay all charges, impositions and
outlays of every nature and kind relating to the Leased Premises except as
expressly herein set out to the contrary.

SECTION 2.09 - ACKNOWLEDGMENT OF COMMENCEMENT DATE

     The Tenant agrees to execute and return to the Landlord, within fifteen
(15) days of written demand from the Landlord, an acknowledgment of the
Commencement Date in the form set forth in Schedule "D" annexed hereto, subject
to such variations as the facts require.

ARTICLE III
-----------

TAXES, OPERATING COSTS AND MANAGEMENT FEE
-----------------------------------------

SECTION 3.01 - TAXES PAYABLE BY LANDLORD

     The Landlord shall pay directly to the appropriate and lawful taxing
authorities all Taxes subject to Sections 3.02 and 3.05 hereof. The Landlord
may, in good faith, contest any Taxes and appeal any assessments with respect
thereto; withdraw any such contest or appeal; and agree with the taxing
authorities on any settlement or compromise with respect to Taxes.

SECTION 3.02 - TENANT'S SHARE OF TAXES

     The Tenant shall pay to the Landlord as Additional Rent all Taxes assessed
against the Leased Premises.

     If the Tenant elects to be assessed as a separate school supporter, the
Tenant will pay to the Landlord, in addition to any other amounts owing pursuant
to this Section 3.02, the excess, if any, of the separate school taxes over
public school taxes resulting from such election.

SECTION 3.03 - TENANT'S SHARE OF OPERATING COSTS

     The Tenant shall pay to the Landlord as Additional Rent in accordance with
Section 3.07 all Operating Costs.

SECTION 3.04 - MANAGEMENT FEE

     The Tenant shall pay to the Landlord as Additional Rent in accordance with
Section 3.07 the Management Fee.

SECTION 3.05 - TENANT'S TAXES
<PAGE>

                                                                              11

         The Tenant shall pay to the appropriate and lawful taxing authorities,
or to the Landlord, as appropriate, and shall discharge when the same become due
and payable, all Tenant's Taxes.

SECTION 3.06 - TENANT'S RESPONSIBILITY

         The Tenant shall promptly deliver to the Landlord copies of assessment
notices, tax bills and other documents received by the Tenant relating to Taxes
and Tenant's Taxes and receipts for payment of Taxes and Tenant's Taxes. The
Tenant shall not contest any Taxes or Tenant's Taxes or appeal any assessments
relating thereto without the Landlord's prior written approval. If the Tenant
obtains such approval, the Tenant shall deliver to the Landlord such security
for the payment of such Taxes or Tenant's Taxes as the Landlord deems advisable
and the Tenant shall diligently prosecute any such appeal or contestation to a
speedy resolution and shall keep the Landlord informed of its progress in that
regard from time to time.

SECTION 3.07 - PAYMENT OF ESTIMATED TAXES, OPERATING COSTS AND MANAGEMENT FEE

         (a)  The amounts payable by the Tenant pursuant to Sections 3.02,
                    3.03, 3.04 and 3.05 hereof may be estimated by the Landlord
                    for each Fiscal Period and the Tenant agrees to pay to the
                    Landlord the amounts so estimated in monthly installments in
                    advance during such period as Additional Rent.
                    Notwithstanding the foregoing, as soon as bills for all or
                    any portion of the said amounts so estimated are received,
                    the Landlord may bill the Tenant therefore 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 Additional
                    Rent within thirty (30) days of demand therefore or, at the
                    Landlord's option, such amounts shall be paid in regular
                    monthly instalments as an adjustment to Additional Rent,
                    amortized or pro rated over the balance of the current
                    Fiscal Period.

         (b)  Within a reasonable period of time after the end of the period
                    for which such estimated payments have been made (and in any
                    event within one hundred and twenty (120) days after the end
                    of each Fiscal Period), the Landlord shall deliver to the
                    Tenant a statement from the Landlord of the Operating Costs,
                    Taxes and Management Fee together with a calculation of the
                    Tenant's share of the costs and expenses payable to the
                    Landlord pursuant to Sections 3.02, 3.03, 3.04 and 3.05 and,
                    if necessary, an adjustment shall be made between the
                    parties in the following manner. If the Tenant has paid in
                    excess of the amounts due, the excess shall be refunded by
                    the Landlord within a reasonable period of time after the
                    delivery of the said statement, or, at the option of the
                    Landlord, the excess shall be credited to amounts payable to
                    the Landlord pursuant to Sections 3.02, 3.03, 3.04 and 3.05.
                    If the amount the Tenant has paid is less than the amounts
                    due, the Tenant agrees to pay such additional amounts due
                    forthwith upon demand. If the Term commences or ends on a
                    date which does not coincide with the beginning or end of a
                    Fiscal Period, the Tenant's share of the Additional Rent
                    payable to the Landlord in respect of such Fiscal Period
                    pursuant to Sections 3.02, 3.03, 3.04 and 3.05 hereof, shall
                    be subject to a per diem, pro rata adjustment based on a
                    period of three hundred and sixty-five (365) days. The
                    obligations set out herein shall survive the expiration of
                    the Term or earlier termination of this Lease. Failure of
                    the Landlord to render any statement of Taxes, Operating
                    Costs and Management Fee shall not prejudice the Landlord's
                    right to render such statement thereafter or with respect to
                    any other period. The rendering of any such statement shall
                    also not affect the Landlord's right to subsequently render
                    an amended or corrected statement. The Landlord shall
                    maintain at the Landlord's Address, available for inspection
                    by the Tenant on no less than five (5) days' Notice to the
                    Landlord, such of the Landlord's expense and other records
                    relating to each Fiscal Period as are relevant to, or relied
                    upon by the Landlord in preparing any Landlord's statement
                    delivered to the Tenant pursuant to this subsection in
                    respect of that Fiscal Period.

         (c)  The Landlord warrants and represents that Operating Costs for
                    the Fiscal Period commencing January 1, 2001, shall not
                    exceed ninety cents (90 cents) per square foot of Rentable
<PAGE>

                                                                              12

                         Area of the Building, excluding Taxes and the
                         Management Fee.

ARTICLE IV
----------

LEASED PREMISES - CONTROL AND SERVICES
--------------------------------------

SECTION 4.01 - CONTROL OF THE LEASED PREMISES BY THE LANDLORD

          The Landlord shall operate and maintain the Leased Premises in a first
class condition as would a careful and prudent owner of a similar commercial
building. To the extent that the Landlord retains independent contractors for
any services in connection with the maintenance, repair, replacement, operation,
administration or management of the Leased Premises, it shall do so at prices
or rates reasonably competitive in the industry, provided that the Tenant shall
have the right from time to time, in its sole discretion and on reasonable prior
Notice to the Landlord to specify a contractor or contractors of the Tenant's
choice.

          The Leased Premises is at all times subject to the exclusive control,
management and operation of the Landlord. Without limiting the generality of the
preceding sentence, the Landlord has the right, in its control, management and
operation of the Leased Premises and by the establishment of Rules and
Regulations and general policies with respect to the operation of the Leased
Premises or any part thereof at all times during the period when the Tenant is
given possession of the Leased Premises and throughout the Term, and with the
Tenant's prior written consent, which consent shall not be unreasonably
withheld or delayed, to:

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

          (b)  relocate or re-arrange the various facilities and improvements
                         comprising the Building or erected on the Lands from
                         those existing at the Commencement Date;

          (c)  do and perform such other acts in and to the Leased Premises as
                         in the use of good business judgment the Landlord
                         determines to be advisable for the more efficient and
                         proper operations of the Leased Premises.

          Notwithstanding anything contained in this Lease, it is understood and
agreed that if as a result of the exercise by the Landlord of its rights set out
in this Section 4.01, the facilities in or improvements to the Leased Premises
are diminished or altered in any manner whatsoever, the Landlord is not subject
to any liability, nor is the Tenant entitled to any compensation, nor shall any
such diminution or alteration of the facilities or improvements in or to the
Leased Premises be deemed constructive or actual eviction, or a breach of any
covenant for quiet enjoyment contained in this Lease or implied by law provided
that the Landlord shall not reduce the Rentable Area of the Building or
materially impede access to the Leased Premises except when necessary during
the completion of any such work and provided further that the Landlord shall
complete all such work diligently and with due speed. Notwithstanding the
foregoing, if as a result of the exercise by the Landlord of its rights set out
in this Section 4.01, the Tenant is restricted from using, or is unable to use,
all or any portion of the Building for any period, Rent shall abate in the same
proportion as the unuscable portion of the Building bears to the Rentable Area
of the Building, for the duration of such period.

SECTION 4.02 - SUBSTITUTION OF MANAGEMENT BY TENANT

          Notwithstanding the other provisions of this Lease, and in particular
the provisions of Section 4.01 hereof, the Landlord and Tenant agree that in
the event that the Landlord has, on at least two (2) or more occasions in any
twenty-four (24) month period of the Term, been in default of any of its
material obligations under this Lease, in each case beyond such period as is
reasonably required in the circumstances for the remedy or curing of such
default (such period in no event to be less than thirty (30) days following
delivery by the Tenant to the Landlord of Notice of such default), then in such
circumstances, the Tenant, at its option exercisable on no less than ten (10)
days' Notice to the Landlord may assume responsibility for management, operation
and maintenance of the entire Leased Premises in the same manner and to the same
standards as are otherwise imposed upon the Landlord pursuant to the provisions
of this Lease. In such event, in respect of the period following the effective
date set out in such second Notice, the Tenant shall be responsible to operate
and maintain the Leased Premises at its cost and the Landlord shall, as and from
such date, no longer operate and maintain the Leased Premises or be entitled to
payment of any Management Fee and the Tenant shall be responsible for payment
to the Landlord only of those items otherwise included in Operating Costs as are
actually incurred by the Landlord from time to time thereafter in accordance
with the provisions of this Lease; provided that
<PAGE>

                                                                              13

nothing contained in this Section shall otherwise affect the rights and
obligations of the Landlord and Tenant under this Lease, and in particular,
without limitation, under Articles VII, VIII and XIII hereof.

SECTION 4.03 - TENANT'S UNRESTRICTED ACCESS

          The Landlord covenants and agrees that provided the Tenant is not in
material default beyond any period permitted under Article XIII hereof for the
remedying or curing of such default and subject to any period during which
access to the Leased Premises may be unavailable owing to the occurrence of
damage or destruction as contemplated in Article IX hereof, the Tenant shall
have unrestricted access to the Leased Premises, twenty-four (24) hours per
day, seven (7) days per week, throughout the Term at no additional charge to the
Tenant.

ARTICLE V

UTILITIES AND ADDITIONAL SERVICES

SECTION 5.01 - CHARGES FOR UTILITIES

          The Tenant shall be solely responsible for and shall promptly pay for
the cost of electricity, water, steam, fuel, power, telephone, sewer and other
utilities supplied applicable to the Leased Premises on the basis of separate
meters installed by the Landlord at its cost. The Tenant further covenants to
heat the Leased Premises to a sufficient temperature to prevent at all times,
any damage to the Leased Premises and/or building containing the Leased Premises
and without limiting the generality of the foregoing, to heat the Leased
Premises so as to comply with any law, order, requirement and/or regulations
which from time to time govern the heating thereof.

SECTION 5.02 - ADDITIONAL SERVICES OF THE LANDLORD

          Subject to Article 4 hereof, and excluding services supplied by the
Landlord and charged to the Tenant as Operating Costs, one hundred and ten per
cent (110%) of the actual cost to the Landlord of all Additional Services
provided by the Landlord or its agent to the Tenant shall be payable forthwith
by the Tenant, upon demand by the Landlord, as an Additional Service Cost. Such
services shall include any services performed at the Tenant's request including,
without limitation, maintenance, repair, janitorial or cleaning services,
construction of additional Leasehold Improvements and replacement of bulbs
(including non-standard bulbs), tubes and ballasts. Additional Services
provided by the Landlord or its agent on behalf of the Tenant in respect of any
of the Tenant's obligations set out in the Lease which the Tenant fails to
perform shall be paid by the Tenant to the Landlord as Additional Rent
forthwith following written demand therefor at the rate of one hundred and
fifteen per cent (115%) of the cost to the Landlord.

SECTION 5.03 - THIRD PARTY SERVICES

          Excluding services supplied by the Landlord and charged to the Tenant
as Operating Costs or as an Additional Service Cost, the Tenant shall be solely
responsible for, and promptly pay to the appropriate third party, all charges
for services used or consumed in or provided to the Leased Premises, including,
without limitation, rug shampooing, telecommunications services, janitorial
services, pest control and other services not available through the Landlord. In
no event will the Landlord be liable to the Tenant in damages or otherwise for
any failure to supply any third-party services to the Leased Premises.

ARTICLE VI
----------

USE OF LEASED PREMISES
----------------------

SECTION 6.01 - USE OF THE LEASED PREMISES

          The Leased Premises shall be used for general purposes for the Type
of Business of the Tenant specified in Section 1.01(19), provided such purposes
comply with the terms, covenants and conditions of
<PAGE>

                                                                              14

this Lease and all applicable Laws from time to time in existence. The Leased
Premises may not be used for any other purposes.

SECTION 6.02 - OBSERVANCE OF LAW

          The Tenant shall at its sole cost and expense, and in particular, and
without limitation, where applicable in compliance with Sections 8.01 and 8.02
hereof, promptly observe and comply with all Laws or requirements of all
governmental authorities, including fire insurance underwriters, now or
hereafter in force which pertain to or affect the Leased Premises, the Tenant's
use of the Leased Premises or the conduct of any business in the Leased
Premises, or the making by the Tenant of any repairs, replacements, alterations,
additions, changes, substitutions or improvements of or to the Leased Premises.
The Tenant shall carry out all modifications, alterations or changes of or to
the Leased Premises and the Tenant's conduct of business in or use of the Leased
Premises which are required by any such authorities, provided that the Tenant
shall not be responsible for the making of any repairs or alterations to the
Leased Premises made necessary by the failure of the Landlord to comply with any
Laws.

SECTION 6.03 - ENERGY CONSERVATION

          Consistent with its obligations to keep the Leased Premises in good
repair, order and condition hereunder, the Tenant will at its cost comply with
all Laws relating to the conservation of energy affecting the Leased Premises
and the conduct of business therein, including compliance with all reasonable
requests and demands of the Landlord intended to achieve the conservation of
energy.

SECTION 6.04 - ODOURS, DUST OR NOISE

          The Tenant warrants that no noxious odours, dust or unreasonable noise
will emanate from the Leased Premises as a result of the operations conducted by
the Tenant therein and the Tenant further covenants that it will not cause or
maintain any nuisance in, at or on the Leased Premises and/or the Lands.
Accordingly, the Tenant agrees that should such noxious odour, dust or noise
conditions exist, the Tenant will, at its own expense, take such steps as may be
necessary to rectify the same, provided further that if the Tenant shall fail to
commence to do so within forty-eight (48) hours and complete the same within a
reasonable time after Notice is received by the Tenant from the Landlord, then
the Landlord may, at its option and without prejudice to its other rights or
recourses:

          (a)  notify Tenant by Notice that it must shut down all its operations
                    in the Leased Premises; and

          (b)  the Landlord may proceed forthwith to take reasonable measures to
                    correct the situation and the Landlord shall be entitled to
                    cover the cost thereof from the Tenant forthwith upon demand
                    as an Additional Service Cost.

SECTION 6.05 - OBSTRUCTIONS

          The sidewalks, driveways and entries shall not be obstructed by the
Tenant, its officers, agents, servants, employees or customers or used for any
other purposes than for ingress and egress to or from the Leased Premises, and
the Tenant shall save the Landlord harmless from damages to persons or property
because of any nuisance or other act of the Tenant which shall obstruct the free
movements of persons to, in and from the Building and Lands.

SECTION 6.06 - OUTSIDE AREAS

          The Tenant shall not use any part of the exterior parking and loading
areas or any other areas outside the Building for any purpose other than
parking, shipping or receiving in the areas designated by the Landlord from time
to time for same. The Tenant shall not allow any type of storage and/or
transportation trailer belonging to or being used by or on behalf of the Tenant
to remain in such parking, shipping or receiving areas for any period of time
longer than shall be necessary for the Tenant's purposes and if any such vehicle
has remained in any parking, shipping or receiving areas for a period in excess
of that required for the Tenant's purposes, as determined by the Landlord acting
reasonably, the Landlord shall be entitled to have such trailer removed at the
Tenant's sole cost as an Additional Service. In addition, any damage caused to
such parking, shipping or receiving areas as a result of the presence of such
trailer shall be forthwith repaired by the Tenant, at the Tenant's sole cost
or, at the Landlord's option, shall be repaired by the Landlord and the costs
thereof shall be payable forthwith by the Tenant, upon demand by the Landlord,
as an Additional Service Cost.
<PAGE>

                                                                              15

     For the purposes of this Lease:

     (a)  "Environmental Law" means any law, by-law, order, ordinance, ruling,
                    regulation, certificate, approval, consent or directive of
                    any applicable federal, provincial or municipal government,
                    governmental department, agency or regulatory authority or
                    any court of competent jurisdiction, relating to
                    environmental matters and/or regulating the import, storage,
                    distribution, labeling, sale, use, handling, transport or
                    disposal of Hazardous Substances, including but not limited
                    to, the Environmental Protection Act (Ontario), as amended
                    from time to time;

     (b)  "Hazardous Substance" means any contaminant, pollutant, dangerous
                    substance, noxious substance, toxic substance, hazardous
                    waste, flammable or explosive material, radioactive
                    material, urea formaldehyde foam insulation, asbestos,
                    polychlorinated biphenyl's, polychlorinated biphenyl waste,
                    polychlorinated biphenyl related waste, and any other
                    substance or material now or hereafter declared, defined or
                    deemed to be regulated or controlled in or pursuant to the
                    Environmental Law; and

     (c)  "Release" means any release, spill, emission, leakage, pumping,
                    injection, deposit, disposal, discharge, dispersal, leaching
                    or migration.

     During the Term of this Lease, the Tenant shall:

          (i)    comply with all requirements of the Environmental Law (provided
                           that the Tenant shall have no responsibility to
                           remedy any breach of Environmental Law which existed
                           as at the Commencement Date and which did not arise
                           from any act or omission of the Tenant prior to such
                           date, whether in the construction of its Leasehold
                           Improvements or otherwise);

          (ii)   conduct its business operation in the Leased Premises in such a
                           manner as to prevent the Release of any Hazardous
                           Substance in, on, under, over or at the Leased
                           Premises.

     If the Tenant creates or brings to the Leased Premises any Hazardous
Substances or if the conduct of the Tenant's business shall cause there to be
any Hazardous Substance at the Leased Premises then, notwithstanding any rule of
law to the contrary, such Hazardous Substance shall be and remain the sole and
exclusive property of the Tenant and shall not become the property of the
Landlord notwithstanding the degree of affixation to the Leased Premises of the
Hazardous Substance, and notwithstanding the expiry or earlier termination of
this Lease.

     During the Term, and at the expiration of the Term of this Lease, the
Tenant shall, at the Tenant's sole cost and expense in accordance with all
requirements of Environmental Law, remove any Hazardous Substance brought or
permitted to be brought onto the Leased Premises by the Tenant or those for
whom the Tenant is at law responsible.

ARTICLE VII
-----------
INSURANCE AND INDEMNITY
-----------------------

SECTION 7.01 - TENANT'S INSURANCE

     (a)  The Tenant shall throughout the period that the Tenant is given
                    possession of the Leased Premises and during the entire
                    Term, at its sole cost and expense, take out and keep in
                    full force and effect, the following insurance:

     (i)  all-risk property insurance (including but not limited to sprinkler
                        leakage, flood, earthquake and collapse coverage) in an
                        amount equal to the full replacement cost thereof upon
                        property of every description and kind owned by the
                        Tenant or for which the Tenant is liable, or installed
                        by or on behalf of the Tenant and which is located
                        within the Leased Premises including, without
                        limitation, Leasehold Improvements, tenant's fixtures,
<PAGE>

                    the Tenant's stock-in-trade, furniture and personal property
                    provided that if there is a dispute as to the amount which
                    comprises full replacement cost, the decision of the
                    Landlord shall be conclusive;

      (ii)  business interruption insurance in such amount as will reimburse the
                    Tenant for direct or indirect loss of earnings attributable
                    to all perils insured against in Section 7.01(a)(i) and
                    other perils commonly insured against by prudent tenants or
                    attributable to prevention of access to the Leased Premises
                    as a result of such perils;

      (iii) comprehensive general and legal liability insurance, including
                    bodily injury, property damage and personal injury
                    liability, tenant's legal liability, contractual liability
                    and owners' and contractors' protective insurance coverage
                    with respect to the Leased Premises and the Tenant's use of
                    the Leased Premises, coverage to include the activities and
                    operations conducted by the Tenant and any other person for
                    whom the Tenant is in law responsible. Such policies shall
                    be written on a comprehensive basis with inclusive limits
                    of not less than five million dollars ($5,000,000) for
                    bodily injury to any one or more persons or property damage,
                    and such higher limits as the Landlord, acting reasonably,
                    or the Mortgagee requires from time to time, and shall
                    contain a severability of interests clause and a cross-
                    liability clause;

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

      (v)   insurance required by reason of the introduction by or on behalf of
                    the Tenant or any occupant of the Leased Premises, or any
                    part thereof, of any radioactive material or substance, into
                    or on or about the Leased Premises or on the Lands, or for
                    any other reason requiring special coverage; and

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

      (b)   All policies shall:

      (i)   be taken out with insurers acceptable to the Landlord;

      (ii)  be in a form satisfactory from time to time to the Landlord which
                    form may include a reasonable deductible, the amount of
                    which will be subject to the Landlord's approval, which
                    approval may not be unreasonably withheld;

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

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

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

      (vi)  name the Landlord and the Mortgagee as insured parties and, in
                    respect of property damage insurance, incorporate the
                    Mortgagee's standard mortgage clause; and

(vii) contain a waiver of subrogation by the insurer in respect of any claims to
                    which it might otherwise be entitled against the Landlord or
                    those for whom it is at law responsible.

      (c)   Certificates of insurance or, if required by the Landlord or the
                    Mortgagee, certified copies of each such insurance policy
                    will be delivered to the Landlord as soon as practicable
                    after the placing of the required insurance and in any event
                    such certificates of insurance shall be delivered at least
                    ten (10) days-prior to the effective date of coverage.
                    Provided that no review or approval of any such
<PAGE>

                                                                              17

                    insurance certificate by the Landlord shall derogate from or
                    diminish the Landlord's rights or the Tenant's obligations
                    contained in this Article.

      (d)   If the Tenant fails to take out or keep in force any insurance
                    referred to in this Section 7.01, or should any such
                    insurance not be approved by either the Landlord or the
                    Mortgagee and should the Tenant not commence to diligently
                    rectify (and thereafter proceed to diligently rectify) the
                    situation within twenty-four (24) hours after written notice
                    by the Landlord to the Tenant (stating, if the Landlord or
                    the Mortgage does not approve of such insurance, the
                    reasons therefor), the Landlord has the right without
                    assuming any obligation in connection therewith to effect
                    such insurance at the sole cost of the Tenant and all
                    outlays by the Landlord shall be paid by the Tenant to the
                    Landlord on demand as Additional Rent without prejudice to
                    any other rights and remedies of the Landlord under this
                    Lease.

      (e)   The Tenant agrees that in the event of damage or destruction to the
                    Leasehold Improvements in the Leased Premises covered by
                    insurance pursuant to Section 7.0l(a)(i), the Tenant shall
                    use the proceeds of such insurance for the purpose of
                    repairing or restoring such Leasehold Improvements, it being
                    acknowledged and agreed that the Tenant shall endeavour, in
                    good faith, to replicate the Leasehold Improvements as at
                    the Commencement Date but shall not be obligated in such
                    repairing or restoring to adhere strictly to the same plans
                    and specifications which were employed in the original
                    construction of such Leasehold Improvements. If the event of
                    damage to or destruction of the Building entitling the
                    Landlord or the Tenant to terminate the Lease pursuant to
                    Section 9.01(b) and the Lease is terminated, the Tenant
                    shall forthwith pay to the Landlord all of its insurance
                    proceeds relating to the Leasehold Improvements in or on
                    the Leased Premises and the Tenant shall upon demand deliver
                    to the Landlord in accordance with the provisions of this
                    Lease the Leasehold Improvements and the Leased Premises.

SECTION 7.02 - INCREASE IN INSURANCE PREMIUMS

         The Tenant shall not keep, use, sell or offer to sell in or upon the
Leased Premises any article which may be prohibited by any fire insurance policy
in force from time to time covering the Leased Premises. In addition, if:

         (a)   the occupation of the Leased Premises by the Tenant;

         (b)   the conduct of business in the Leased Premises by the Tenant;
               or

         (c)   any act or omission of the Tenant in the Leased Premises or any
               part thereof;

causes or results in any increase in premiums for the insurance carried from
time to time by the Landlord with respect to the Leased Premises, the Tenant
shall pay any such increase in premiums as Additional Rent forthwith upon demand
by the Landlord. In determining whether increased premiums are caused by or
result from the use or occupancy of the Leased Premises by the Tenant or those
for whom the Tenant is at law responsible, a schedule issued by the organization
computing the insurance rate on the Leased Premises showing the various
components of such rate shall be conclusive evidence of the several items and
charges which make up such rate. The Tenant shall comply promptly with all
requirements of any insurer now or hereafter in effect pertaining to or
affecting the Leased Premises.

SECTION 7.03 - CANCELLATION OF INSURANCE

         If any insurance policy upon the Leased Premises or any part thereof
shall be cancelled or shall be threatened by the insurer to be cancelled or the
coverage thereunder reduced in any way by the insurer by reason of the use or
occupation of the Leased Premises or any part thereof by the Tenant or by any
assigns or sub-tenant of the Tenant, or by anyone permitted by the Tenant to be
upon the Leased Premises, the Tenant shall remedy the condition giving rise to
cancellation, threatened cancellation or reduction of coverage within twenty-
four (24) hours after Notice thereof by the Landlord.

SECTION 7.04 - LOSS OR DAMAGE
<PAGE>

                                                                              18

     The Landlord shall not be liable for any death or injury arising from or
out of any occurrence in, upon, at or relating to the Leased Premises, or damage
to property of the Tenant or of others located on or in the Leased Premises, nor
shall it be responsible for any loss of or damage to any property of the Tenant
or others from any cause whatsoever, except for any such death, injury, loss or
damage which results from the negligence of the Landlord, its agents, servants
or employees or other persons for whom it may in law be responsible and provided
that in no event shall the Landlord be responsible for any loss, injury or
damage contemplated by Section 7.07(b), or for any indirect or consequential
damages sustained by the Tenant or others. Without limiting the generality of
the foregoing but subject to the exceptions to the limitation of the liability
of the Landlord set out herein, the Landlord shall not be liable for any injury
or damage to persons or property resulting from fire, explosion, dampness,
falling plaster, falling ceiling tile, falling ceiling fixtures (including part
or all of the ceiling T grid system) and diffuser coverings, or from steam, gas,
electricity, water, rain, flood, snow or leaks from any rentable premises or
from the pipes, sprinklers, appliances, plumbing works, roof, windows or
subsurface of any floor or ceiling of the Leased Premises or from the street or
any other place or by any other cause whatsoever. The Landlord shall not be
liable for any such damage caused by other persons on the Leased Premises or by
occupants of adjacent property thereto (save to the extent such other persons or
occupants are persons for whom the Landlord is otherwise at law responsible) or
the public, or caused by construction by persons other than the Landlord or
those for whom it is at law responsible or by any public or quasi-public work.
Subject to the foregoing, all property of the Tenant kept or stored on the
Leased Premises shall be so kept or stored at the risk of the Tenant only and
the Tenant shall indemnify the Landlord and save it harmless from any claims
arising out of any damage to the same including, without limitation, any
subrogation claims by the Tenant's insurers.

SECTION 7.05 - LANDLORD'S INSURANCE

     The Landlord shall at all times throughout the Term carry:

     (a)   insurance on the Building (excluding the foundations and
                   excavations) and the machinery, boilers and equipment
                   contained therein or servicing the Building and owned by the
                   Landlord (specifically excluding any property with respect to
                   which the Tenant is obliged to insure pursuant to Section
                   7.01) against damage by fire and extended perils or all-
                   risks coverage;

     (b)   public liability and property damage insurance with respect to the
                   Landlord's operations, if any, on the Leased Premises;

     (c)   loss of rental income insurance, or loss of insurable gross profits
                   commonly insured against by prudent landlords, including loss
                   of all rentals receivable from the Tenant in accordance with
                   the provisions of this Lease, including Basic Rent and
                   Additional Rent; and

     (d)   such other form or forms of insurance as the Landlord or the
                   Mortgagee reasonably considers advisable and which a prudent
                   owner of a similar building would maintain.

     Such insurance shall be in such reasonable amounts and with such reasonable
deductibles as would be carried by a prudent owner of reasonably similar
industrial building, having regard to size, age and location. Notwithstanding
the Landlord's covenant contained in this Section 7.05, and notwithstanding any
contribution by the Tenant to the cost of insurance premiums provided herein,
the Tenant acknowledges and agrees that no insurable interest is conferred upon
the Tenant under any policies of insurance carried by the Land1ord, and the
Tenant has no right to receive any proceeds of any such insurance policies
carried by the Landlord. The Landlord shall obtain in each of its policies of
insurance a waiver of any rights of subrogation to which the Landlord's insurer
might otherwise be entitled against the Tenant or those for whom the Tenant is
at law responsible.

SECTION 7.06 - INDEMNIFICATION OF THE LANDLORD

     Except as provided in Section 7.07(a) but notwithstanding any other
provision of this Lease, the Tenant agrees to protect, indemnify and save each
of the Landlord and its officers, employees and agents completely harmless from
and against:

     (i)  any loss (including loss of Basic Rent and Additional Rent),
                   claims, actions, damages, liability and expenses in
                   connection with loss of life, personal injury, damage to
                   property or any other loss or injury whatsoever arising out
                   of any occurrence in, upon or at the Leased Premises, and
                   related to the occupancy or use thereof by the Tenant of the
                   Leased Premises or any part thereof, or occasioned wholly or
                   in part by any act or omission of the Tenant and/or any other
                   person for whom the Tenant is at law responsible; and
<PAGE>

          (ii) any Environmental Claim as hereinafter defined, directly or
                       indirectly incurred, sustained or suffered by or asserted
                       against the Landlord and/or its officers, employees and
                       agents caused by or attributable to, either directly or
                       indirectly, any act or omission of the Tenant and/or any
                       other person for which the Tenant is in law responsible
                       prior to or during the Term of this Lease.

          For the purposes of this Lease, "Environmental Claim" means any
claims, losses, costs, expenses, fines, penalties, payments and/or damages
(including without limitation, all reasonable solicitors' fees on a solicitor
and his own client basis) relating to, arising out of, resulting from or in any
way connected with the Release (as such term is defined in Section 6.07 of this
Lease) in, on, over, upon or from the Leased Premises of any Hazardous Substance
(as such term is defined in Section 6.07 of this Lease) including, without
limitation, all costs and expenses of any remediation or restoration of the
Leased Premises and/or the Lands required or mandated by the Environmental Law
(as such term is defined in Section 6.07 of this Lease).

          If the Landlord shall, without fault on its part, be made a party of
any litigation commenced by or against the Tenant, then the Tenant shall
protect, indemnify and hold the Landlord harmless and shall pay all costs,
expenses and reasonable legal fees incurred or paid by the Landlord in
connection with such litigation. The Tenant shall also pay all reasonable costs,
expenses and legal fees that may be incurred or paid by the Landlord in
reasonably enforcing the terms, covenants and conditions in this Lease unless a
court of law having jurisdiction shall decide otherwise.

SECTION 7.07 - LIMITATIONS OF LIABILITY

          (a) The Tenant shall not be liable to the Landlord in respect of
                       any loss, injury or damage insured or required to be
                       insured by the Landlord under Sections 7.05(a) and (c) to
                       the extent of any recovery by the Landlord under such
                       insurance or to the extent the Landlord would have
                       recovered had it placed such coverage as is required of
                       it pursuant to Section 7.05 hereof and diligently
                       pursued any available claim thereunder; and

          (b) The Landlord shall not be liable to the Tenant in respect of any
                       loss, injury or damage to property insured or required to
                       be insured by the Tenant under Sections 7.01(a)(i), (ii)
                       and (iv) to the extent of any recovery by the Tenant
                       under such insurance or to the extent the Tenant would
                       have recovered had it placed such coverage as is
                       required of it pursuant to Subsection 7.01(a) hereof and
                       diligently pursued any available claim thereunder.

ARTICLE VIII
------------
MAINTENANCE, REPAIRS AND ALTERATIONS
------------------------------------

SECTION 8.01 - MAINTENANCE AND REPAIRS BY THE TENANT

         (a)  Subject to Sections 8.03 and 9.01 hereof, the Tenant shall
                       at all times at its sole cost, keep and maintain the
                       Leased Premises and every part thereof, including all
                       facilities, equipment and services, both inside and
                       outside, in a clean and tidy condition and will not
                       permit waste paper, garbage, ashes, waste, debris or
                       other objectionable material to accumulate thereon or
                       therein and the Tenant will not use any outside garbage
                       or other containers (other than those approved or
                       designated by the Landlord) and the Tenant shall arrange
                       for removal and disposal of waste and garbage at its sole
                       expense. Subject to sections 8.03 and 9.01 hereof, the
                       Tenant, at its sole cost and expense, shall renew,
                       rebuild, replace, operate, maintain, paint and keep the
                       Leased Premises and every part thereof, both exterior
                       and interior, all equipment, fixtures, appurtenances used
                       in or about the Leased Premises,
<PAGE>

                                                                              20

                       including plumbing, electrical, heating, cooling, and
                       other facilities and systems during the Term of this
                       Lease, in good repair and condition, as a careful and
                       prudent tenant would do (such reasonable wear and tear as
                       would not be repaired by a careful and prudent tenant,
                       damage by insured perils, and repairs to the structural
                       elements of the Building and base building, mechanical,
                       electrical and plumbing systems only excepted, unless and
                       to the extent caused by the negligent act or omission of
                       the Tenant or those for whom the Tenant is in law
                       responsible).

         (b)  The Tenant shall examine the Leased Premises before taking
                       possession thereof and unless the Tenant furnishes the
                       Landlord with a notice in writing specifying any defect
                       in the construction of the Leased Premises within
                       fifteen (15) days after such taking of possession, the
                       Tenant shall conclusively be deemed to have examined the
                       Leased Premises, to have agreed that they are in order,
                       and such taking of possession without the giving of such
                       notice as aforesaid within such fifteen (15) day period
                       is conclusive evidence against the Tenant that at the
                       time thereof the Leased Premises were in good order and
                       satisfactory condition, subject to latent defects, if
                       any. The Tenant agrees that there is no promise,
                       representation or undertaking by or binding upon the
                       Landlord with respect to the use of the Leased Premises
                       or any alteration, remodeling or redecorating of or
                       installation of equipment or fixtures in the Leased
                       Premises, except such, if any, as are expressly set forth
                       in this Lease or the Agreement to Lease.

         (c)  The Tenant acknowledges that it will not enter, nor permit or
                       suffer any person to enter upon the roof of the building
                       containing the Leased Premises or make any opening in the
                       roof or roof membrane without the prior written consent
                       of the Landlord.

         (d)  In addition to the specific obligations elsewhere in this Lease
                       reserved and contained on the part of the Tenant to be
                       observed and performed and without in any way limiting
                       the generality thereof (but subject always to the
                       Landlord's obligations in this Lease contained), the
                       condition, maintenance, operation and management of the
                       Leased Premises, and other improvements thereon or
                       therein from time to time, including without limitation
                       all machinery, equipment and other facilities therein or
                       thereon, shall be the sole responsibility of the Tenant,
                       throughout the Term hereof and the Tenant shall make all
                       payments, foreseen, unforeseen, ordinary and/or
                       extraordinary, required to be made not only with respect
                       to the observance and performance of such specific
                       obligations but also with respect to the general
                       obligation in this clause contained.

SECTION 8.02 - LANDLORD'S  APPROVAL OF THE TENANT'S REPAIRS OR ALTERATIONS

         (a)      During the Term of this Lease or any renewal or extension
                       hereof, the Tenant shall not make any repairs,
                       replacements or, Leasehold Improvements in any part of
                       the Leased Premises without first obtaining the
                       Landlord's written approval, such approval not to be
                       unreasonably withheld, and in connection therewith the
                       Tenant shall, prior to commencing any such work, submit
                       to the Landlord:

         (i)      for its prior approval details of the proposed work, including
                       drawings and specifications prepared by qualified
                       architects or engineers and conforming to good
                       engineering practice;

         (ii)     such reasonable indemnification against liens, costs, damages
                       and expenses (including its costs and expenses incurred,
                       or which may be incurred, in reviewing the proposed work
                       and supervising its completion) and such insurance
                       coverage as the Landlord reasonably requires; and

         (iii)    evidence satisfactory to the Landlord that the Tenant has
                       obtained at its expense all necessary consents, permits,
                       licences and inspections from all governmental and
                       regulatory authorities having jurisdiction.

         (b)      All such repairs, replacements or, Leasehold Improvements made
                       or installed by the Tenant in the Leased Premises and
                       approved by the Landlord shall be performed:

         (i)      with quality materials owned by the Tenant at the sole cost of
                       the Tenant;

         (ii)     by competent workmen whose labour union affiliations are
                       compatible with others employed by the Landlord and its
                       contractors;

         (iii)    in a good and workmanlike manner;
<PAGE>

                                                                              21

(iv)  in accordance with the drawings and specifications approved by the
Landlord; and

(v)   subject to the reasonable regulations, supervision, controls and
inspection of the Landlord.

(c)   If any such repairs, replacements, Leasehold Improvements would affect the
structure of the Building, or any of the electrical, mechanical or other base
building systems or their warranties, such work shall, at the option of the
Landlord, be performed by the Landlord as an Additional Service at competitive
prices. If such work would affect such warranties, the Landlord may reasonably
refuse to allow such work to be done. Upon completion thereof, and thereafter,
to the extent requiring ongoing maintenance, repair or replacement, the Tenant
shall pay to the Landlord the Additional Service Cost in respect thereof.

(d)   In respect of repairs, alterations or replacements of or to the Leased
Premises during the Term, the Tenant shall pay to the Landlord, as Additional
Rent, the Landlord's reasonable costs and fees incurred in respect of the
supervising, coordinating, monitoring, reviewing, inspecting and approving of
the construction of the Leasehold Improvements, including professional fees
incurred by the Landlord, such costs not to exceed in the aggregate for
construction of the Tenant's initial Leasehold Improvements twenty-five cents
($0.25) per square foot and not to exceed, in the aggregate, for other
construction of Leasehold Improvements during the Term, ten cents ($0.10) per
square foot and, if the Landlord's architects and engineers responsible for the
Leased Premises are not retained by the Tenant to complete any improvements in
the Leased Premises affecting the structure thereof or any of the electrical,
mechanical or other base building systems or their warranties, any cost or
expense of the Landlord's architects and engineers in respect of approval of
plans, and supervision and/or inspection of such work, will each be payable by
the Tenant as Additional Rent upon being invoiced by the Landlord.

(e)   The Landlord and Tenant acknowledge that the provisions of this Section
8.02 are intended to apply during the Term, that is as and from the Commencement
Date only, and are not intended to apply to the initial construction of the
Leasehold Improvements, which shall be governed by Section 2.03 hereof.

SECTION 8.03 - MAINTENANCE AND REPAIRS BY THE LANDLORD

(a)   The Landlord agrees with the Tenant to keep in good and first class
condition and repair as a careful and prudent owner would do:

(i)   the exterior portions of the Building and other structures from time to
time forming part of the Leased Premises and affecting its general appearance
including, without limitation, the exterior weather walls and the asphalt
parking lot and lighting and landscaped areas of the Leased Premises, including
all landscaping, snow plowing, trash removal and general building and grounds
maintenance functions; and

(iii) the structural members or elements of the Leased Premises, including its
foundations, floor structures, roof and water proof membrane and structural
portions of exterior walls, bearing walls, structural columns and beams and base
building mechanical, electrical and HVAC components and plumbing systems and
drains, gas, electrical and other utility services to the Building located in,
on or under the Lands, except for repairs caused by the negligent act or
omission of the Tenant or those for whom the Tenant is in law responsible.

(b)   Subject to Section 9.01 the Landlord agrees with the Tenant to repair
Insured Damage.

(c)   The Tenant acknowledges and agrees that the Landlord is not liable for any
damages, direct, indirect or consequential, or for damages for personal
discomfort, illness

<PAGE>

                                                                              22

                         or inconvenience of the Tenant or the Tenant's
                         servants, clerks, employees, invitees or other persons
                         by reason of failure of any equipment, facilities or
                         systems servicing the Leased Premises or of reasonable
                         delays in the performance of any repairs, replacements
                         and maintenance for which the Landlord is responsible
                         pursuant to this Lease and no such delay shall entitle
                         the Tenant to any compensation or abatement whatsoever.

           (d)   If the Tenant refuses or neglects to carry out any repairs
                         properly required to be carried out by it under this
                         Lease and to the reasonable satisfaction of the
                         Landlord, the Landlord may, but shall not be obliged
                         to, make such repairs without being liable for any loss
                         or damage that may result to the Tenant's merchandise,
                         fixtures or other property or to the Tenant's business
                         by reason thereof and upon completion thereof, the
                         Tenant shall pay to the Landlord the Additional
                         Service Cost in respect thereof.

SECTION 8.04 - SURRENDER OF THE LEASED PREMISES

           At the expiration of the Term or earlier termination of this Lease,
the Tenant shall peaceably surrender and yield up the Leased Premises to the
Landlord in as good condition and repair as the Tenant is required to maintain
the Leased Premises throughout the Term and the Tenant shall surrender all keys
for the Leased Premises to the Landlord at the place then fixed for the payment
of Rent and shall inform the Landlord of all combinations of locks, safes and
vaults, if any, in the Leased Premises. Notwithstanding any other provision of
this Lease to the contrary, the Tenant shall not be required to remove its
Leasehold Improvements at the expiration or earlier termination of the Term. The
Tenant may, however, and shall, if requested by the Landlord as provided in
Section 8.08 hereof, remove all of its trade fixtures before surrendering the
Leased Premises as aforesaid. The Tenant's obligation under this covenant shall
survive the expiration of the Term or earlier termination of this Lease.

SECTION 8.05 - REPAIR WHERE THE TENANT IS AT FAULT

           Save for the limitation of liability contained in Section 7.07(a) but
notwithstanding any other provision of this Lease, if the Leased Premises or
any part thereof, or any equipment, machinery, facilities or improvements
contained therein or made thereto, or the roof or outside walls of the
Building or any other structural portions thereof require repair or replacement
or become damaged or destroyed by reason of any act, omission to act, neglect or
default of the Tenant or those for whom the Tenant is in law responsible or
through any of them in any way stopping up or damaging the climate control,
heating apparatus, water pipes, drainage pipes or other equipment or facilities
or parts of the Leased Premises, the cost of the resulting repairs, replacements
or alterations shall be an Additional Service Cost to the Tenant.

SECTION 8.06 - TENANT NOT TO OVERLOAD FACILITIES

           The Tenant shall not install any equipment which will alter, exceed
or overload the capacity of any utility, electrical or mechanical facilities in
the Leased Premises, and the Tenant will not bring into the Leased Premises or
install any utility, electrical or mechanical facility or service which the
Landlord does not approve, such approval not to be unreasonably withheld. The
Tenant agrees that if any changes proposed or used by the Tenant requires
additional utility, electrical or mechanical facilities, the Landlord may, in
its sole discretion, if they are available, elect to install them in accordance
with plans and specifications to be approved in advance in writing by the
Landlord and the reasonable and competitive cost thereof shall be an Additional
Service Cost to the Tenant.

SECTION 8.07 - TENANT NOT TO OVERLOAD FLOORS

           The Tenant shall not bring into the Building or any part thereof any
machinery, equipment, article or thing that by reason of its weight, size or
use might in the opinion of the Landlord damage the Building or the Leased
Premises and shall not at any time overload the floors of the Building.

SECTION 8.08 - REMOVAL AND RESTORATION BY TENANT

           (a)   All Leasehold Improvements shall immediately become the
                         property of the Landlord upon affixation or
                         installation without compensation therefor to the
                         Tenant, but the Landlord is under no obligation to
                         repair, maintain or insure any Leasehold Improvements.
                         Leasehold Improvements and trade fixtures shall not be
                         removed from the Leased Premises either during or at
                         the expiration or earlier termination of the Term
                         except that:

           (i)   the Tenant may during the Term in the usual or normal course of
                              its business and without the prior written consent
                              of the Landlord remove its trade fixtures,
<PAGE>

                                                                              23

                         provided that such trade fixtures have become excess
                         for the Tenant's purposes or the Tenant is substituting
                         new and similar trade fixtures therefor, and provided
                         that the Tenant is not in default under this Lease;

         (ii)  the Tenant shall, immediately prior to the expiration of the Term
                         and at its own cost, remove all trade fixtures
                         requested by the Landlord to be removed and repair any
                         damage to the Leased Premises caused by their
                         installation and removal, failing which such may be
                         completed by the Landlord as an Additional Service to
                         the Tenant; and

(iii)    the Tenant may, with the prior written consent of the Landlord, but
                         shall not be obligated, to remove at its own cost from
                         the Leased Premises immediately prior to the expiration
                         of the Term, any of the Tenant's Leasehold Improvements
                         and shall repair any damage to the Leased Premises
                         caused by their installation and removal, failing which
                         such repair may be completed by the Landlord as an
                         Additional Service to the Tenant.

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

         All property of the Tenant remaining on the Leased Premises after the
termination of the tenancy shall be deemed to have been abandoned by the Tenant
in favour of the Landlord and may be disposed of by the Landlord at its
discretion without prejudice to the rights of the Landlord to claim damages
from the Tenant for failure to remove the same.

SECTION 8.09 - NOTICE BY THE TENANT

         The Tenant shall when it becomes aware of same notify the Landlord by
Notice of any damage to or deficiency or defect in any part of the Leased
Premises, any equipment or utility systems or any installations located therein
notwithstanding the fact that the Landlord may have no obligations with
respect to same.

SECTION 8.10 - TENANT TO DISCHARGE ALL LIENS

         The Tenant shall at all times during the period that the Tenant is
engaged in the construction or installation of its improvements or has been
given possession of the Leased Premises and throughout the Term promptly pay all
its architects, engineers, contractors, materialmen, suppliers and workmen and
all charges incurred by or on behalf of the Tenant for any work, materials or
services which may be done, supplied or performed at any time in respect of the
Leased Premises and the Tenant shall do any and all things necessary so as to
ensure that no lien is registered against the Leased Premises or any part
thereof or against the Landlord's interest in the Leased Premises in connection
with work performed in respect of, or materials supplied to, the Leased Premises
at the request of the Tenant (including, without limitation, obtaining a
waiver of lien from its contractors and subcontractors) and if any lien is made,
filed or registered as a result thereof, the Tenant shall discharge it or cause
it to be discharged forthwith at the Tenant's expense.

          If the Tenant fails to discharge or cause any such lien to be
discharged as aforesaid within seven (7) days of receipt of notice of same, then
in addition to any other right or remedy of the Landlord, the Landlord may but
it shall not be obligated to discharge the same by paying the amount claimed to
be due into Court or directly to any such lien claimant and the amount so paid
by the Landlord and all costs and expenses, including reasonable legal fees (on
a solicitor and his client basis) incurred as a result of the registration of
any such lien shall be immediately due and payable by the Tenant to the
Landlord as Additional Rent on demand.

SECTION 8.11 - SIGNS AND ADVERTISING

         The Tenant shall be permitted, at its sole cost, to install signage on
the Building fascia overlooking Matheson Boulevard, and on the Building standard
podium sign (which podium sign will be provided by the Landlord at its cost) to
be located at the driveway entrance to the Leased Premises. In
<PAGE>

                                                                              24

addition, the Tenant shall be permitted to install signage on the north side of
the lands facing Highway 401, provided that such sign exceeds the height of the
Building. The Tenant shall throughout the Term be responsible for the cost of
repair and replacement of all such signs. The installation, repair and removal
of any signs permitted under this Section 8.11 shall be subject to compliance by
the Tenant with all Laws and to the Tenant obtaining the approval of the
Landlord, acting reasonably, with respect to size, location, design and method
of affixation of any such signs. The Tenant acknowledges that any sign affixed
to the Building may require structural re-enforcement, and that the costs
associated with such re-enforcement shall be paid by the Tenant to the Landlord
on demand as Additional Rent. At the expiration of the Term or earlier
termination of this Lease, the Tenant shall remove any such sign, picture,
advertisement, notice, lettering or decoration from the Leased Premises at the
Tenant's expense and shall promptly repair all damage caused by any such
installation and removal failing which such may be performed by the Landlord as
an Additional Service to the Tenant. The Tenant's obligation to observe and
perform this covenant shall survive the expiration of the Term or earlier
termination of this Lease.

ARTICLE IX
----------

DAMAGE AND DESTRUCTION
----------------------

SECTION 9.01 - DESTRUCTION OF THE LEASED PREMISES

     (a)  If the Leased Premises are at any time destroyed or damaged
                 (including, without limitation, smoke and water damage) as a
                 result of fire, the elements, accident or other casualty
                 required to be insured against by the Landlord pursuant to
                 Section 7.05 hereof or otherwise insured against by the
                 Landlord, and if as a result of such occurrence:

     (i)  the Leased Premises are rendered untenantable in whole or in part,
                       this Lease shall continue in full force and effect and
                       the Landlord shall, subject to Section 9.01(b) hereof,
                       commence diligently to reconstruct, rebuild or repair the
                       Leased Premises to the extent only of its obligations in
                       respect of the Landlord's Work, as defined in Section 8
                       of the Agreement to Lease, and if the damage is such
                       that the portion of the Leased Premises rendered
                       untenantable is not reasonably capable of use and
                       occupancy by the Tenant for the purposes of its business
                       for any period of time in excess of three (3) days, Rent
                       shall abate proportionately to the portion of the Leased
                       Premises rendered untenantable from and after the date of
                       such damage or destruction until that date which is one
                       hundred and twenty (120) days after the Landlord's
                       repairs have been completed and the Architect has
                       certified the Building, or the damaged portion thereof,
                       to be reasonably capable of use and occupancy by the
                       Tenant for the purposes of its business. The Landlord
                       shall in any event endeavour to replicate the Landlord's
                       Work as at the Commencement Date, but shall not be
                       obligated in the course of such reconstruction,
                       rebuilding or repairs to adhere strictly to the original
                       plans and specifications for the Landlord's Work, and
                       provided that in no event shall the Rentable Area of the
                       Building be less than that existing as at the
                       Commencement Date;

     (ii) the Leased Premises are not rendered untenantable in whole or in part,
                       this Lease shall continue in full force and effect, the
                       Rent and other amounts payable by the Tenant shall not
                       terminate, be reduced or abate and the Landlord shall,
                       subject to Section 9.01(b) hereof, commence diligently
                       to reconstruct, rebuild or repair the Leased Premises to
                       the extent only of its obligations in respect of the
                       Landlord's Work as defined in Section 8 of the Agreement
                       to Lease. The Landlord shall in any event endeavour to
                       replicate the Landlord's Work as at the Commencement
                       Date, but shall not be obligated in the course of such
                       reconstruction, rebuilding or repairs to adhere strictly
                       to the original plans and specifications for the
                       Landlord's Work, and provided that in no event shall the
                       Rentable Area of the Building be less than that existing
                       as at the Commencement Date;

     (b)  Notwithstanding anything contained in Section 9.01(a), if more
                 than fifty percent (50%) of the Rentable Area of the Building
                 is damaged or destroyed by any cause whatsoever and such damage
                 or destruction occurs in the last two (2) years of the Term or
                 any renewal term, then the Tenant, instead of reconstructing,
                 rebuilding or repairing the Leasehold Improvements in
                 accordance with Sections 7.01(e) and 9.01(c), may at its option
                 elect to terminate this Lease by giving to the Landlord Notice
                 of termination within forty-five (45) days after such damage or
                 destruction, and thereupon Rent and other payments for which
                 the Tenant is liable under this Lease shall be apportioned and
                 paid to the date of such damage
<PAGE>

                                                                              25

                   or destruction, and the Tenant shall immediately deliver up
                   vacant possession of the Leased Premises to the Landlord in
                   accordance with the terms of this Lease and in such event all
                   proceeds of insurance receivable by the Tenant in respect of
                   Leasehold Improvements shall be directed or as signed to the
                   Landlord.

         (c)  Subject to the provisions of Subsection 9.01(b), upon the Tenant
                   being given Notice by the Landlord that the Landlord's
                   reconstruction, rebuilding or repairs have been substantially
                   completed, the Tenant shall forthwith complete all repairs to
                   the Leased Premises which are the Tenant's responsibility
                   under Section 7.01(e) and all other work required to fully
                   restore the Leased Premises for business in every case at the
                   Tenant's cost and without any contribution to such cost by
                   the Landlord, whether or not the Landlord has at any time
                   made any contribution to the cost of supply, installation or
                   construction of Leasehold Improvements in the Leased
                   Premises. The Tenant shall diligently complete the Tenant's
                   repairs and if the Leased Premises have been closed for
                   business, commence carrying on business within one hundred
                   and twenty (120) days after notice that the Landlord's
                   reconstructing, rebuilding or repairs have been substantially
                   completed.

         (d)  The written opinion or certificate of the Architect as to the
                   date of completion of any Landlord's repairs required to be
                   undertaken under the provisions of this Section 9.01, or as
                   to the portion of the Leased Premises which are untenable, or
                   as to when the Leased Premises or any portion thereof are
                   reasonably capable of use and occupancy by the Tenant
                   following any damage or destruction and repairs, or as to
                   whether fifty percent (50%) or more of the Rentable Area of
                   the Building has been damaged or destroyed, shall be
                   determinative of the issue.

SECTION 9.03 - ABROGATION

         (Intentionally Deleted]
<PAGE>

                                                                              26

ARTICLE X
---------

TRANSFER AND SALE
-----------------

SECTION 10.01 - ASSIGNING AND SUBLETTING

     The Tenant will not enter into, consent to or permit a Transfer without the
prior written consent of the Landlord in each instance, which consent shall not
be unreasonably withheld, but shall be subject to the Landlord's rights under
Section 10.02. Notwithstanding any statutory provision to the contrary, it shall
not be considered unreasonable for the Landlord to take into account the
following factors in deciding whether to grant or withhold its consent:

     (a)  whether any such Transfer is in violation or breach of any covenants
               or restrictions granted by the Landlord to its Mortgagee;

     (b)  whether in the Landlord's opinion the financial background, business
               history and capability of the proposed transferee is
               satisfactory; or

     (c)  whether the proposed person or entity to whom the Transfer is being
               made is an existing tenant of the Landlord.

     The consent by the Landlord to any Transfer, if granted, shall not
constitute a waiver of the necessity for such consent to any subsequent
Transfer, whether by the Tenant or any sublessee of the Tenant. This prohibition
against a Transfer is construed so as to include a prohibition against any
Transfer by operation of law and no Transfer shall take place or be deemed to
have been consented to or approved by reason of a failure by the Landlord to
give notice to the Tenant within thirty (30) days as required by Section 10.02.

     Notwithstanding the foregoing, the Landlord hereby acknowledges that the
Tenant shall be entitled from time to time throughout the Term, and any
renewals thereof without the Landlord's consent, but upon not less than ten (10)
days' written Notice to the Landlord, to assign this Lease or to sublease a
portion of the Leased Premises to:

               (i)   any of the Tenant's parent, subsidiary or affiliated
                     corporations (within the meaning of the Ontario Business
                     Corporations Act as amended or replaced from time to
                     time);

               (ii)  an affiliate or subsidiary of the Tenant's parent; or

               (iii) any corporation in respect of which the Tenant, or a parent
                     of the Tenant holds no less than five percent (5%) of the
                     issued common shares, provided that the aggregate area
                     sublet to all such corporations does not exceed in the
                     aggregate ten thousand (10,000) square feet of Rentable
                     Area and that no such sublease shall be for a term,
                     inclusive of renewals, exceeding three (3) years, and
                     further provided that any disposition by the Tenant or its
                     parent of any of the common shares of any such corporation,
                     or the issuance of any additional shares of such
                     corporation, which would result in the holding of the
                     Tenant or the Tenant's parent being reduced or diluted to
                     less than five percent (5%) of the total issued common
                     shares at any time during which such corporation continues
                     to occupy a portion of the Leased Premises, shall
                     constitute a Transfer to which the provisions of this
                     Article X shall apply.

     In addition to, and notwithstanding the foregoing, the Tenant shall be
entitled from time to time throughout the Term, without the Landlord's consent
but upon not less than ten (10) days' written Notice to the Landlord, to
sublease any portion of the Leased Premises from time to time so long as the
aggregate Rentable Area which is the subject to all such subleases (excluding
subleases permitted under the preceding paragraph) does not exceed fifteen
percent (15%) of the Rentable Area of the Building and provided that the term of
any such sublease inclusive of all renewals, shall not exceed four (4) years.

SECTION 10.02 - LANDLORD'S RIGHT TO GIVE OR WITHHOLD CONSENT

     Save as provided for in Section 10.01, above, the Tenant shall not effect a
Transfer unless:

     (a) it shall have received or procured a bona fide written offer to effect
               a Transfer which is not inconsistent with, and the acceptance of
               which would not breach any provision of this Lease if this
               Section 10.02 is complied with and which the Tenant has accepted
               subject only to compliance with this Section 10.02, and

     (b) it shall have first requested and obtained the consent in writing of
               the Landlord thereto.
<PAGE>

                                                                              27

     Any request for such consent shall be in writing and accompanied by a true
copy of such offer, and the Tenant shall furnish to the Landlord all information
available to the Tenant and requested by the Landlord as to the responsibility,
reputation, financial standing and business of the proposed person or entity to
whom the Transfer is being made. The Landlord shall within thirty (30) days
after having received such notice and all such necessary information, notify
the Tenant in writing either that it consents or does not consent to the
Transfer in accordance with the provisions and qualifications in this Article X.

SECTION 10.03 - CONDITIONS OF TRANSFER

     (a) If there is a permitted Transfer, the Landlord may collect rent from
               the transferee and apply the amount collected to the Rent
               required to be paid pursuant to this Lease, but no acceptance by
               the Landlord of any payments by the transferee shall be deemed a
               waiver of the provisions of Article X hereof or the acceptance of
               the transferee as tenant or a release of the Tenant from the
               further performance by the Tenant of the covenants or obligations
               on the part of the Tenant herein contained. Where the Landlord's
               consent to a Transfer is required under Section 10.01, any such
               consent by the Landlord shall be subject to the Tenant executing
               and causing any such transferee to promptly execute an agreement
               directly with the Landlord agreeing to be bound by all of the
               terms, covenants and conditions contained in this Lease (in
               respect of the Leased Premises, or such portion thereof as was
               the subject of the Transfer) as if such transferee had originally
               executed this Lease as tenant.

     (b) Notwithstanding any such Transfer permitted or consented to by the
               Landlord, the Tenant and transferee shall be jointly and
               severally liable for the performance of all of the Tenant's
               obligations under this Lease in respect of the Leased Premises,
               or such portion thereof as was the subject of such Transfer, and
               the Tenant shall not be released from performing any of the
               terms, covenants and conditions of this Lease.

     (c) The Tenant agrees that if this Lease is ever disclaimed or terminated
               in a bankruptcy proceeding relating to a transferee, or if the
               Landlord terminates this Lease as a result of any act or default
               of any transferee, the Tenant shall, at the Landlord's option
               exercised by Notice to the Tenant, enter into a new lease of the
               Leased Premises on terms identical to this Lease for a term
               commencing on the date which the Landlord exercises its right to
               require the Tenant to enter into such new lease and expiring upon
               the date of expiry of this Lease; in such event, the Tenant
               will accept the Leased Premises in an "as is" condition.

     (d) There shall be no prohibition on the rent that may be charged by the
               Tenant to any transferee, but the Tenant agrees that in respect
               of any Transfer permitted hereunder, any rent or other
               consideration received by the Tenant which is in excess of the
               Rent payable by the Tenant hereunder (after deduction of the
               Tenant's reasonable costs of the Transfer, including, without
               limitation, direct leasing costs, tenant allowances or free rent,
               real estate commissions, legal fees and undepreciated capital
               costs, based upon a ten (10) year amortization period, for
               original construction costs incurred by the Tenant) shall be
               shared equally between the Tenant and the Landlord and the
               Landlord's equal share of such excess shall be payable to the
               Landlord as Additional Rent on demand.

     (e) Any document or consent evidencing any Transfer permitted by the
               Landlord or setting out any terms applicable to such Transfer or
               the rights and obligations of the Tenant or the transferee
               thereunder, shall be prepared by the Landlord or its solicitors,
               and all reasonable legal and other costs with respect thereto
               shall be paid by the Tenant to the Landlord or its solicitors
               forthwith upon demand as Additional Rent, together with an
               administrative fee payable to the Landlord in the amount of three
               hundred dollars ($300).

SECTION 10.04 - NO ADVERTISING OF THE LEASED PREMISES

<PAGE>

                                                                              28

     The Tenant shall not print, publish, post, display or broadcast any notice
or advertisement or otherwise advertise the whole or any part of the Leased
Premises for the purpose of any Transfer and it shall not permit any broker or
other person to do any of the foregoing, unless the complete text and format of
any such notice or advertisement is first approved in writing by the Landlord,
which approval shall not be unreasonably withheld. Without in any way
restricting or limiting the Landlord's right to refuse any text or format on
other grounds, any text or format proposed by the Tenant shall not contain any
reference to the Rent of and for the Leased Premises

SECTION 10.05 - ASSIGNMENT BY THE LANDLORD

     The Landlord, at any time and from time to time, may sell, transfer, lease
assign or otherwise dispose of the whole or any part of its interest in the
Leased Premises, and at any time and from time to time may enter into any
Mortgage of the whole or any part of its interest in the Leased Premises. If the
party acquiring such interest shall have agreed, so long as it holds such
interest, to assume and to perform each of the covenants, obligations and
agreements of the Landlord under this Lease in the same manner and to the same
extent as if originally named as the Landlord in this Lease, the Landlord shall
thereupon be released from all of its covenants and obligations under this
Lease.

ARTICLE XI
----------

ACCESS AND ALTERATIONS
----------------------

SECTION 11.01 - RIGHT OF ENTRY

     The Landlord and its agents have the right on prior reasonable Notice to
enter the Leased Premises at all times to examine the same and to make such
repairs, alterations, changes, checks, adjustments, calibrations, improvements
or additions to the Leased Premises or the Building or any part thereof or
systems therein. The Tenant shall not obstruct any pipes, conduits, ducts,
mechanical shafts or electrical equipment so as to prevent reasonable access
thereto.

SECTION 11.02 - RIGHT TO SHOW LEASED PREMISES

     The Landlord and its agents have the right to enter the Leased Premises at
all times during business hours and on prior reasonable Notice to show them to
prospective purchasers, lessees or Mortgagees and during the nine (9) months
prior to the expiration of the Term, or any renewal term, the Landlord may place
upon the Leased Premises the usual "For Rent" notices which the Tenant shall
permit to remain thereon without molestation or complaint.

SECTION 11.03 - ENTRY NOT FORFEITURE

     No entry into the Leased Premises or anything done therein by the Landlord
pursuant to a right granted by this Lease shall constitute a breach of any
covenant for quiet enjoyment, or (except where expressed by the Landlord in
writing) shall constitute a re-entry or forfeiture, or any actual or
constructive eviction. The Tenant shall have no claim for injury, damages or
loss suffered as a result of any such entry or thing done by the Landlord. The
Rent required to be paid pursuant to this Lease shall not abate or be reduced
due to loss or interruption of business of the Tenant or otherwise while any
repairs, alterations, changes, adjustments, improvements or additions permitted
by this Lease are being made by the Landlord.

SECTION 11.04 - LANDLORD'S COVENANT FOR QUIET ENJOYMENT

     The Landlord hereby agrees to perform or cause to be performed all of the
obligations of the Landlord under this Lease, and further agrees that if the
Tenant pays the Basic Rent and Additional Rent and continuously performs all its
obligations under this Lease, the Tenant shall, subject to the terms and
conditions of this Lease, peaceably possess and enjoy the Leased Premises
throughout the Term and any renewal thereof without any interruption or
disturbance from the Landlord or any other person or persons lawfully claiming
by, through or under the Landlord.

SECTION 11.05 - INSPECTION

     The Landlord and its agents have the right on prior reasonable Notice to
the Tenant to enter the Leased Premises at all times to inspect the condition
thereof and where an inspection reveals repairs are necessary that are the
obligation of the Tenant under this Lease, the Landlord may give the Tenant
Notice
<PAGE>

                                                                              29

and thereupon the Tenant will, at the Tenant's sole expense and within twenty
(20) days of the giving of such Notice, complete the necessary repairs and
replacements, in a good and workmanlike manner to the satisfaction of the
Landlord, acting reasonably. Provided always that if the Tenant shall not within
the five (5) days after the giving of such Notice, be proceeding diligently with
the execution of the repairs and replacements mentioned in such Notice, it shall
be lawful for the Landlord to enter upon the Leased Premises and execute such
repairs and replacements and the cost thereof shall immediately be due and be
paid by the Tenant to the Landlord as an Additional Service Cost.
Notwithstanding what is hereinbefore set out, should such inspection reveal
repairs which are the obligation of the Tenant and which in the reasonable
exercise of the Landlord's judgment result in an emergency then the Landlord, at
its option, shall immediately and without Notice have the right to enter on and
into the Leased Premises and the Tenant shall pay the reasonable costs involved
immediately upon demand as an Additional Service Cost.

ARTICLE XII
-----------

STATUS STATEMENT, ATTORNMENT AND SUBORDINATION
----------------------------------------------

SECTION 12.01 - STATUS STATEMENT

     Within ten (10) days after request by Notice therefor by the Landlord, the
Tenant shall deliver, in a form supplied by the Landlord, a status statement or
a certificate to the Landlord, or to the Mortgagee, or to any proposed Mortgagee
or purchaser, or as the Landlord may otherwise direct stating (if such is the
case):

     (a) that this Lease is unmodified and in full force and effect (or if there
               have been modifications, that this Lease is in full force and
               effect as modified and identifying the modification agreements);

     (b) the Commencement Date;

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

     (d) whether there is any other existing or alleged default by either party
               under this Lease with respect to which a notice of default has
               been served and if there is any such default, specifying the
               nature and extent thereof; and

     (e) whether there are any defences or counterclaims against enforcement of
               the obligations to be performed by the Tenant under this Lease.

SECTION 12.02 - SUBORDINATION AND ATTORNMENT

     It is a condition of this Lease and the Tenant's rights granted hereunder
that this Lease and all of the rights hereunder are and shall at all times be
subject and subordinate to any and all Mortgages from time to time in existence
against the Lands. Upon request, the Tenant shall subordinate the Lease and all
of its rights hereunder in such form as the Landlord reasonably requires to any
and all Mortgages, and to all advances made or hereafter to be made upon the
security thereof and, if requested, the Tenant shall attorn to the holder
thereof. Any subordination will provide that the rights of the Tenant under this
Lease shall not be interfered with so long as the Tenant is not in default
hereunder and shall be conditional upon the delivery to the Tenant of the non-
disturbance covenant. The form of such subordination shall be as required by the
Landlord or any Mortgagee. Notwithstanding the foregoing, the Landlord shall
obtain, at no cost to the Tenant, from each Mortgagee affecting the Lands
and/or the Expansion Lands from time to time, a covenant of non-disturbance in
which the Mortgagee agrees not to disturb the Tenant's possession of the Leased
Premises and to be bound by the terms of this Lease, as landlord, in the event
that such Mortgagee becomes a mortgagee in possession, exercises its power of
sale remedies or forecloses, provided that the Tenant maintains this Lease in
good standing.

SECTION 12.03 - ATTORNEY

<PAGE>

                                                                              30

     The Tenant irrevocably constitutes the Landlord, its agent and attorney for
the purpose of executing any agreement, certificate, attornment or subordination
required by this Lease if the Tenant fails to execute and deliver such documents
within ten (10) days after request by the Landlord.

SECTION 12.04 - FINANCIAL INFORMATION

     The Tenant shall, upon request, provide the Landlord with such information
as to the Tenant's or any Indemnifier's financial standing and corporate
organization as the Landlord or the Mortgagee requires. Failure by the Tenant to
comply with the Landlord's request herein shall constitute a default under the
terms of this Lease and the Landlord shall be entitled to exercise all of its
rights and remedies provided for in this Lease.

SECTION 12.05 - ACKNOWLEDGMENT OF TITLE

     The Tenant acknowledges that its interest under this Lease is subject to:

     (a) such covenants, restrictions, easements, agreements and reservations
               of record, and any easements, licences, rights-of-way and cost
               sharing arrangements and agreements respecting the same which are
               disclosed on the Parcel Register for the Lands or which are
               hereafter made in connection with the provision of access or
               services to the Leased Premises and which may affect the
               Landlord's title;

     (b) all Laws of the City of Mississauga, Province of Ontario and
               Government of Canada, and of all statutory commissions, boards
               and bodies having jurisdiction over the Leased Premises;

     (c) the condition of the Landlord's title existing at the date hereof; and

     (d) municipal realty taxes, local improvement rates, duties, assessments,
               water and sewer rates and other impositions accrued but not yet
               due.

ARTICLE XIII
------------

DEFAULT
-------

SECTION 13.01- RIGHT TO RE-ENTER

     If and whenever:

     (a) the Tenant fails to pay any Basic Rent or Additional Rent or other sums
               due hereunder on the day or dates appointed for the payment
               thereof (providing the Landlord first gives five (5) days' Notice
               to the Tenant of any such failure); or

     (b) the Tenant fails to observe or perform any other of the terms,
               covenants or conditions of this Lease to be observed or performed
               by the Tenant (other than the terms, covenants or conditions
               set out below in subparagraphs (c) to (h), (k) and (1) inclusive,
               for which no Notice shall be required), provided the Landlord
               first gives the Tenant ten (10) days' (or such longer period of
               time as is reasonably required in the circumstances) Notice of
               any such failure to perform and the Tenant within such period of
               ten (10) days (or such longer period) fails to cure any such
               failure to perform, or (where such failure to perform is not
               curable within such period) fails to commence diligently within
               such period and to thereafter proceed diligently to cure any such
               failure; or

     (c) the Tenant or any agent of the Tenant falsifies any report or statement
               required to be furnished to the Landlord pursuant to this Lease;
               or

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

     (e) a receiver or a receiver and manager is appointed for all or a
               portion of the property of the Tenant; or

     (f) any steps are taken or any action or proceedings are instituted by the
               Tenant or by any other party including, without limitation, any
               court or governmental body of competent jurisdiction for the
               dissolution, winding-up or liquidation of the Tenant or its
               assets; or

<PAGE>

                                                                              31

         (g)   the Tenant makes a sale in bulk of any of its assets wherever
                    situate (other than a bulk sale made pursuant to a permitted
                    Transfer hereunder and pursuant to the Bulk Sales Act of
                    Ontario); or

         (h)   the Tenant abandons or attempts to abandon the Leased Premises or
                    sells or disposes of a substantial part of the trade
                    fixtures, or goods and chattels of the Tenant or removes
                    them from the Leased Premises except in accordance with this
                    Lease; or

         (i)   the Leased Premises, without prior Notice from the Tenant to the
                    Landlord, become and remain vacant for a period of fifteen
                    (15) consecutive days or are used by any persons other than
                    such as are entitled to use them hereunder; or

         (j)   the Tenant purports to make a Transfer, except in a manner
                    permitted by this Lease; or

         (k)   this Lease or any of the Tenant's assets located at the Leased
                    Premises are taken under any writ of execution; or

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

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

SECTION 13.02 - RIGHT TO RE-LET

         If the Landlord elects to re-enter the Leased Premises as herein
provided or it takes possession pursuant to legal proceedings or pursuant to any
notice provided for by law, it may either terminate this Lease or it may from
time to time without terminating this Lease, make such alterations and repairs
as are necessary to re-let the Leased Premises or any part thereof for such term
or terms (which may be for a term extending beyond the Term) and at such rent
and upon such other terms, covenants and conditions as the Landlord in its sole
discretion, acting reasonably, considers advisable. Upon each such reletting,
all rent received by the Landlord from such re-letting shall be applied, first,
to the payment of any indebtedness other than Basic Rent or Additional Rent due
hereunder from the Tenant to the Landlord; second, to the payment of any
brokerage fees and legal fees and of costs of such alterations, repairs and re-
letting (including tenant inducements); third, to the payment of Basic Rent and
Additional Rent due and unpaid hereunder; and the residue, if any, to the extent
applicable to any period of time within the Term, shall be held by the Landlord
and applied in payment of future rent as the same becomes due and payable
hereunder. If such rent to be received from such re-letting during any month is
less than that to be paid during that month by the Tenant hereunder, the Tenant
shall pay any such deficiency which shall be calculated and paid monthly in
advance on or before the first day of each and every month. No such re-entry or
taking possession of the Leased Premises by the Landlord shall be construed as
an election on its part to terminate this Lease unless a Notice of such
intention is given to the Tenant. Notwithstanding any such re-letting without
termination, the Landlord may at any time thereafter elect to terminate this
Lease for such previous breach.

SECTION 13.03 - TERMINATION

         If the Landlord at any time terminates this Lease for any breach, in
addition to any other remedies it may have, it may recover from the Tenant all
damages it incurs by reason of such breach, including the cost of recovering the
Leased Premises, legal fees (on a solicitor and his client basis) and including
the worth at the time of such termination of the excess, if any, of the amount
of Basic Rent, Additional Rent and charges equivalent to the Basic Rent,
Additional Rent and other charges required to be paid pursuant to this Lease for
the remainder of the stated Term over the then reasonable rental value of the
Leased Premises for the remainder of the stated Term, all of which amounts shall
be immediately due and payable by the Tenant to the Landlord.

31
<PAGE>

                                                                              32

SECTION 13.04 - ACCELERATED RENT

          In any of the events referred to in Section 13.01, in addition to any
and all other rights available to the Landlord, the full amount of the current
month's installment of Basic Rent and of all Additional Rent for the current
month, together with the next three (3) months' installments of Basic Rent and
of all Additional Rent for the next three (3) months, all of which shall be
deemed to be accruing due on a day-to-day basis, shall immediately become due
and payable as accelerated rent, and the Landlord may immediately distrain for
the same, together with any arrears then unpaid.

SECTION 13.05 - EXPENSES

          If legal action is brought for recovery of possession of the Leased
Premises, for the recovery of Basic Rent or Additional Rent or any other amount
due under this Lease, or because of the breach of any other terms, covenants or
conditions herein contained on the part of the Tenant to be kept or performed,
and such breach is established, the Tenant shall pay to the Landlord all
expenses incurred therefor, including legal fees (on a solicitor and client
basis).

SECTION 13.06 - WAIVER OF EXEMPTION FROM DISTRESS

          The Tenant hereby agrees with the Landlord that notwithstanding
anything contained in Section 30 of R.S.O. 1990, c.L.7 or any Statute
subsequently passed to take the place of or amend the said Act, none of the
goods and chattels of the Tenant at any time during the continuance of the Term
on the Leased Premises shall be exempt from levy by distress for Basic Rent or
Additional Rent in arrears and the Tenant waives any such exemption. If any
claim is made for such exemption by the Tenant or if a distress is made by the
Landlord, this provision may be pleaded as an estoppel against the Tenant in any
action brought to test the right of the Landlord to levy such distress.

SECTION 13.07 - LANDLORD MAY CURE TENANT'S DEFAULT OR
                PERFORM TENANTS COVENANTS

          If the Tenant fails to pay when due any amounts or charges required to
be paid pursuant to this Lease (other than the late payment of Basic Rent which
shall be governed by Section 2.07 hereof), the Landlord after giving five (5)
days' Notice to the Tenant may, but shall not be obligated to, pay all or any
part of the same. If the Tenant is in default in the performance of any of its
covenants or obligations hereunder (other than the payment of Basic Rent,
Additional Rent or other sums required to be paid pursuant to this Lease), the
Landlord may, after giving ten (10) days' Notice to the Tenant, but shall not be
obligated to, from time to time (or without notice in the case of an emergency),
perform or cause to be performed any of such covenants or obligations, or any
part thereof, and for such purpose may do such things as may be required,
including, without limitation, entering upon the Leased Premises and doing such
things upon or in respect of the Leased Premises or any part thereof as the
Landlord reasonably considers requisite or necessary. All expenses incurred and
expenditures made pursuant to this Section 13.07 including the Landlord's
overhead in connection therewith plus a sum equal to twenty-five per cent (25%)
thereof shall be paid by the Tenant as Additional Rent forthwith upon demand.

SECTION 13.08 - ADDITIONAL RENT

          If the Tenant is in default in the payment of any amounts or charges
required to be paid pursuant to this Lease, they shall, if not paid when due, be
collectible as Additional Rent forthwith on demand, but nothing herein contained
is deemed to suspend or delay the payment of any amount of money at the time it
becomes due and payable hereunder, or limit any other remedy of the Landlord.
The Tenant agrees that the Landlord may, at its option, apply or allocate any
sums received from or due to the Tenant against any amounts due and payable
hereunder in such manner as the Landlord sees fit. All such monies payable to
the Landlord hereunder shall bear interest at a rate per annum which is five (5)
percentage points in excess of the Bank Rate calculated on a daily basis from
the time such sums become due until paid by the Tenant.

SECTION 13.09 - REMEDIES GENERALLY

          Mention in this Lease of any particular remedy of the Landlord in
respect of the default by the Tenant does not preclude the Landlord from any
other remedy in respect thereof, whether available at law or in equity or by
statute or expressly provided in this Lease. No remedy shall be exclusive or
dependant upon any other remedy, but the Landlord may from time to time exercise
any one or more of such remedies generally or in combination, such remedies
being cumulative and not alternative. In the event of a breach or threatened
breach by the Tenant of any of the covenants, provisions or terms hereof, the
Landlord shall have the right to invoke any remedy allowed at law or in equity
(including injunction) as if
<PAGE>

                                                                              33

re-entry and other remedies were not provided for herein.

SECTION 13.10 - HOLDING OVER

         If the Tenant shall hold over after the original Term or any extended
term hereof with the consent of the Landlord, such holding over shall be
construed to be a tenancy from month to month only and shall have no greater
effect, any custom, statute, law or ordinance to the contrary notwithstanding.
Such month-to-month tenancy shall be governed by the terms and conditions
hereof, notwithstanding any statutory provision or rule of law to the contrary.
During any such period of holding over, whether with the consent of the Landlord
or not, the Tenant shall be required to pay the monthly Basic Rent payable
during the month immediately preceding the expiration or termination of this
Lease times two (2), plus all Additional Rent payable hereunder. The rights of
the Landlord under this section shall be in addition to all other remedies
available to the Landlord under this Lease or otherwise at law or in equity
arising as a result of such holding over.

SECTION 13.11- NO WAIVER

         The failure of the Landlord or the Tenant to insist upon a strict
performance of any of the covenants and provisions herein contained on the part
of the other party shall not be deemed a waiver of any rights or remedies that
the Landlord (or the Tenant, as the case may be) may have and shall not be
deemed a waiver of any subsequent breach or default in the covenants and
provisos herein contained.

ARTICLE XIV
-----------

MISCELLANEOUS
-------------

SECTION 14.01- RULES AND REGULATIONS

         The Landlord shall have the right at its discretion to make reasonable
rules and regulations (the "Rules and Regulations"), including without
limitation, those set out in Schedule "F" attached not contrary to the spirit
and intent of this Least which may from time to time be needful for the safety,
care, cleanliness and proper administration of the Leased Premises, and for the
preservation of good order therein. The Rules and Regulations are hereby made a
part of this Lease as if they were embodied herein, and the Tenant, its agents,
invitees, servant, employees and licensees shall comply with and observe the
same. Failure by the Tenant to keep and observe any of the Rules and Regulations
now or from time to time in force constitutes a default under this Lease in such
manner as if the same were contained herein as covenants. The Landlord reserves
the right, from time to time to amend or supplement the Rules and Regulations
and Notice of the Rules and Regulations and amendments and supplements, if any,
shall he given to the Tenant and the Tenant shall thereupon comply with and
observe all such Rules and Regulations, provided that no Rule or Regulation
shall contradict any terms, covenants and conditions of this Lease.

SECTION 14.02 - SECURITY DEPOSIT

         The Landlord acknowledges receipt from the Tenant of the Security
Deposit which shall be applied by the Landlord, in part, to the first month's
Basic Rent due hereunder in respect of Phase 1 of the Building, as defined in
Section 2.05 hereof, and the balance of which shall be held by the Landlord for
the performance of the Tenant's obligations under this Lease. If at any time
during the Term, the Basic Rent or Additional Rent or any other sums payable by
the Tenant to the Landlord under this Lease are overdue and unpaid beyond any
notice period provided for herein, or if the Tenant fails to keep and perform
any of the terms, covenants and conditions of this Lease to be kept, observed
and performed by the Tenant and does not remedy such failure within any notice
period as is provided for herein, then the Landlord at its option may, in
addition to any and all other rights and remedies provided for in this Lease or
by law, appropriate and apply the Security Deposit, or so much thereof as is
necessary to reimburse and make good the actual damage of the Landlord. If the
Security Deposit, or any portion thereof is appropriated and applied by the
Landlord for the payment of overdue Basic Rent, Additional Rent or other sums
due and payable to the Landlord by the Tenant hereunder, then the Tenant shall
upon Notice from the Landlord, forthwith remit to the Landlord a sufficient
amount in cash to restore the Security Deposit to the amount held by the
Landlord immediately prior to such appropriation and the Tenant's

33
<PAGE>

                                                                              34

failure to do so within ten (10) business days after receipt of such demand
constitutes a breach of this Lease. If the Tenant complies with all of the
terms, covenants and conditions and promptly pays all the Basic Rent, Additional
Rent and other sums herein provided and payable by the Tenant to the Landlord,
the Security Deposit shall be returned in full (and with interest as provided
for herein) to the Tenant following a favourable move-out inspection by the
Landlord and the Tenant (less any costs for repair of damage) and within ninety
(90) days after the end of the Term. Without limiting the generality of the
foregoing, the Landlord and Tenant agree that the Security Deposit shall earn
interest from and after the Commencement Date at the rate established by the
Royal Bank of Canada for thirty day certificates of deposit (or such other rate
for longer term deposits as is requested by the Tenant, so long as the funds can
be obtained by the Landlord on demand) from time to time, which interest shall
be paid to the Tenant annually upon delivery by the Landlord of the annual
statement reconciling Additional Rent as provided for in Subsection 3.07(b)
hereof. At any time throughout the Term or any renewal, the Tenant shall be
permitted to replace the Security Deposit with an irrevocable, stand-by letter
of credit from a chartered Canadian bank and in a form acceptable to the
Landlord, acting reasonably.

SECTION 14.03 - PEST CONTROL

          In accordance with Section 5.03, the Tenant shall enter into a service
contract for the control and extermination of pests and vermin providing for
regular inspections and spraying of the Leased Premises in order to control
pests and vermin in accordance with all applicable laws, by-laws, ordinances and
regulations of any governmental or other authority having jurisdiction. All
amounts incurred under such service contract shall be for the Tenant's some
cost.

SECTION 14.04 - OBLIGATIONS AS COVENANTS

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

SECTION 14.05 - AMENDMENTS AND SUPPLEMENTARY LEASE PROVISIONS

          This Lease shall not be modified or amended except by an instrument in
writing of equal formality herewith and signed by the parties hereto or by their
permitted successors or assigns. Each of the Landlord and Tenant agrees that, if
a Schedule "F" and/or a Schedule "G" is annexed to this Lease, the terms and
provisions thereof shall be binding upon the parties hereto as part of the
Lease.

SECTION 14.06 - CERTIFICATES

          The following certificates shall be conclusive and binding upon the
parties to this Lease in respect of any question of fact or opinion in dispute
with respect to the matters stipulated:

          (a)  a certificate procured by the Landlord from an architect,
                    professional engineer, quantity surveyor or other qualified
                    individual but who may not be an employee of the Landlord as
                    to the Rentable Area of the Building, any question of fact
                    concerning the completion of any construction or other work
                    either by the Landlord or the Tenant, the extent to which
                    the completion of any such work has been delayed by
                    Unavoidable Delay, the time necessary to complete repairs,
                    the allocation of insurance proceeds, the allocation of
                    Taxes to the Leased Premises, the aggregate of the cost of
                    the Building and the costs of additional improvements of a
                    capital nature, the cause of any destruction or damage, the
                    extent to which the Building is incapable of being used for
                    its intended purposes by reason of any destruction or
                    damage; and

          (b)  a certificate procured by the Landlord from a licensed public
                    accountant, who may be the Landlord's auditor but who may
                    not be an employee of the Landlord as to any question of
                    fact or opinion concerning the computation of Taxes and
                    Operating Costs and the proper amount of any payment to the
                    Landlord or the Tenant under this Lease, provided that
                    certificate shall not be deemed to restrict the Tenant or
                    the Tenant's auditor from challenging any error or
                    miscalculation in any statement delivered by the Landlord
                    pursuant to Section 3.07 hereof or in any related expense or
                    other records reviewed by the Tenant.

          Any certificate procured by the Landlord shall be prepared using
generally accepted practices and procedures appropriate to such certificate.

SECTION 14.07 - TIME
<PAGE>

                                                                              35

         Time shall in all respects be of the essence of this Lease.

SECTION 14.08 - SUCCESSORS AND ASSIGNS

         This Lease and everything contained shall extend to and bind and enure
to the benefit of the Landlord and its successors and assigns and the Tenant and
the Indemnifier, if any, and their respective heirs, executors, administrators
and permitted successors and assigns. No rights shall enure to the benefit of
any transferee unless the provisions of Article X hereof are complied with.

SECTION 14.09 - GOVERNING LAW

         This Lease shall be construed and governed by the laws of the
Province of Ontario.

SECTION 14.10 - HEADINGS

         The Section numbers, article numbers, headings and table of contents
appearing in this Lease are inserted only as a matter of convenience and in no
way define, limit, construe or describe the scope or intent of such paragraphs
or articles of this Lease nor in any way affect this Lease.

SECTION 14.11- ENTIRE AGREEMENT

         This Lease and the schedules attached hereto and forming a part hereof,
the Agreement to Lease together with a letter dated October 13, 2000, from Mr.
J. Marotta of the Landlord to the Tenant confirming certain construction details
(the "Confirmation Letter") set forth all the covenants, promises, agreements,
conditions and understandings between the Landlord and the Tenant concerning the
Leased Premises and there are no covenants, promises, agreements, conditions or
understandings, either oral or written, between them, other than as are herein
and therein set forth; for greater certainty, the Tenant acknowledges that it
has not entered into the Agreement to Lease or this Lease on the basis of any
information contained in the promotional material published by the Landlord. In
the event of a conflict between the provisions of this Lease and the provisions
of the Agreement to Lease, the provisions of this Lease shall prevail (save in
respect of any matters touched upon by those provisions of the Agreement to
Lease expressly incorporated into this Lease by reference in Section 2.03
hereof, and as set out in Schedule "G" hereto, in which case the provisions of
the Agreement to Lease shall prevail to the extent of such conflict, and save in
respect of any matters touched upon in the Confirmation Letter in which case the
provisions of the Construction Letter shall prevail over those of both the Lease
and the Agreement to Lease to the extent of any conflict).

          SECTION 14.12 - SEVERABILITY

                   If any term, covenant or condition of this Lease or the
application thereof to any person or circumstances shall to any extent be
invalid or unenforceable, the remainder of this Lease or the application of such
term, covenant or condition to persons or circumstances other than those as to
which it is held invalid or unenforceable shall not be affected thereby and each
term, covenant or condition of this Lease shall be valid and enforced to the
fullest extent permitted by law.

          SECTION 14.13 - NO OPTION

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

          SECTION 14.14 - OCCUPANCY PERMIT

                   Provided further that notwithstanding the Possession Date
or the Commencement Date of the Lease as hereinbefore set out, the Tenant shall
not be permitted to enter into possession of the Leased Premises until the
Tenant has obtained, at its sole expense, any required occupancy permit from the
proper governmental authority. The Landlord in its sole discretion may waive
this provision, provided further the Tenant agrees to use its best efforts to
obtain same prior to occupancy.

35

<PAGE>

                                                                              36

          SECTION 14.15 - PLACE FOR PAYMENTS

                  All payments required to be made by the Tenant herein shall be
made to the Landlord at the Landlord's Address or to such agent or agents of the
Landlord or at such other place as the Landlord shall hereafter from time to
time direct by Notice.

          SECTION 14.16 - EXTENDED MEANINGS

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

          SECTION 14.17 - NO PARTNERSHIP OR AGENCY

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

          SECTION 14.18 - UNAVOIDABLE DELAY

                  Notwithstanding anything to the contrary contained in this
Lease, but subject to the provisions of Section 2.03 hereof, if either party
hereto is bona fide delayed, or hindered in or prevented from the performance
of, any term, covenant or act required hereunder by reason of Unavoidable Delay,
then performance of such term, covenant or act is excused for the period of the
delay and the party so delayed, hindered or prevented shall be entitled to
perform such term, covenant or act within the appropriate time period after the
expiration of the period of such delay. However, the provisions of this Section
do not operate to excuse the Tenant from the prompt payment of Basic Rent,
Additional Rent or any other payments required by this Lease.

          SECTION 14.19 - CONSENTS AND APPROVALS

                  Except as may be expressly set out to the contrary in this
Lease, wherever any provision of this Lease provides for any consent, approval,
permission or other decision of the Landlord or of the Tenant, or their
respective architects, engineers, auditors or similar agents, such provision
shall be deemed to provide that such consent, approval, permission or other
decision shall not be unreasonably withheld or unduly delayed.

          SECTION 14.20 - REGISTRATION

          (a)   The Tenant hereby covenants and agrees that neither the
                     Tenant nor anyone on the Tenant's behalf or claiming under
                     the Tenant shall register this Lease or any assignment or
                     sublease of this Lease or any document evidencing any
                     interest of the Tenant in the Lease or the Leased Premises.
                     If the covenant contained in this Section 14.19(a) is
                     breached, this Lease and the Term shall, at the option of
                     the Landlord upon ten (10) days' Notice to the Tenant,
                     forthwith become forfeited and terminated and the Landlord
                     may thereupon re-enter and repossess the Leased Premises if
                     the Tenant fails to remove or release any such prohibited
                     registration. The Tenant acknowledges that any breach of
                     such covenant may occasion substantial costs to the
                     Landlord. The Tenant shall indemnify the Landlord and save
                     it harmless from and against any loss, claim, action,
                     damages, liability and expenses arising in connection with
                     any breach by the Tenant of such covenant.

          (b)   Notwithstanding Section 14.19(a), if either party intends to
                     register a document for the purpose only of giving notice
                     of this Lease or of any permitted Transfer, then upon
                     request of such party the Landlord shall cause to be
                     executed a short form
<PAGE>

                                                                              37

                     of this Lease ("Short Form"), and the Tenant shall join
                     therein, solely for the purpose of supporting an
                     application for registration of notice of this Lease or of
                     any permitted Transfers. The form of the Short Form and of
                     the application to register notice of this Lease or of any
                     permitted Transfer shall:

          (i)   be prepared by the Landlord or its solicitors at the Tenant's
                              expense; and

          (ii)  only describe the registered owner of the Lands, the Tenant, the
                              Leased Premises, the Commencement Date and the
                              expiration of the Term.

          (c)   The Short Form shall contain a provision whereby the Tenant
                     constitutes and appoints the Landlord or its nominee as
                     the agent and attorney of the Tenant for the purpose of
                     executing any documents in writing required from the
                     Tenant to give effect to the provisions of Section 12.01 of
                     the Lease, including the right to make application at any
                     time and from time to time to register postponements of
                     this Lease or the Short Form in favour of any Mortgage
                     pursuant to Section 12.02. All costs, expenses and taxes
                     necessary to register or file the application to register
                     notice of this Lease or of any permitted Transfer shall be
                     the sole responsibility of the Tenant, and the Tenant will
                     complete any necessary affidavits required for registration
                     purposes, including affidavits necessary to register the
                     power of attorney from time to time as may be required to
                     give effect to this Section

          (d)   Notwithstanding that the Short Form may be executed and
                     delivered after the execution and delivery of this Lease,
                     none of the terms of this Lease shall be considered to have
                     been superseded thereby or no longer in effect, but rather
                     this Lease shall continue in full force and effect and
                     continue to enure to the benefit of and be binding upon the
                     parties to this Lease. To the extent that the terms of the
                     Short Form are inconsistent with the terms of this Lease,
                     the terms of this Lease shall govern

SECTION 14.21 - JOINT AND SEVERAL LIABILITY

          The liability to pay Rent and perform all other obligations under this
Lease of each individual, corporation, group, partnership or business
association signing this Lease or otherwise agreeing to be bound by the terms
hereof and of each partner or member of any such group, partnership or business
association, the partners or members of which are by law subject to personal
liability, shall be deemed to be joint and several (including, in any event, any
person who ceases to be a partner or member or any person who becomes a partner
or member, in each case following the execution of this Lease).

SECTION 14.22 - NAME OF BUILDING

          The Landlord may designate, change, alter or remove the name of the
Building or of any development of which the Leased Premises from a part at any
time without requiring the Tenant's consent thereto or incurring any liability
to the Tenant thereby.

          Any trade name or mark adopted by the Landlord for the Building or any
such development shall be used by the Tenant only in association with its
business conducted in or from the Leased Premises and subject to such
limitations, regulations and restrictions as the Landlord may from time to time
impose on its use. The Tenant will not acquire any rights to or interest in any
such trade name or mark and shall cease all use thereof upon ceasing to be a
permitted occupant of the Leased Premises.

SECTION 14.23 - CHANGES IN THE LEASED PREMISES

          [Intentionally Deleted]

SECTION 14.24 - COMPLIANCE WITH THE PLANNING ACT
<PAGE>

                                                                              38

          It is an expressed condition of this Lease and the Landlord and the
Tenant so agree and declare that the provisions of Section 50(3), R.S.O. 1990,
c.P.13 and amendments thereto, be complied with if applicable in law. Until any
necessary consent to the Lease is obtained, the term of this Lease and the
Tenant's rights and entitlement granted by this Lease are deemed to extend for a
period not exceeding twenty-one (21) years less one (1) day. The Tenant shall
apply diligently to prosecute such application for such consent forthwith upon
the execution of the Lease by both the Landlord and the Tenant and the Tenant
shall be responsible for all costs, expenses, taxes and levies imposed, charged
or levied as a result of such application and in order to obtain such consent.
The Tenant shall keep the Landlord informed, from time to time, of its progress
in obtaining such consent and the Landlord shall co-operate with the Tenant in
regard to such application. Notwithstanding the foregoing provisions of this
Section 14.23, the Landlord reserves the right at any time, to apply for such
consent in lieu of the Tenant (on behalf and at the expense of the Tenant) and
the Tenant's application is hereby expressly made subject to any application
which the Landlord intends to make.

ARTICLE XV
----------

INDEMNITY AGREEMENT
-------------------

SECTION 15.01 - INDEMNITY

          [Intentionally Deleted]

SECTION 15.02 - FURTHER ASSURANCES

          [Intentionally Deleted]

         IN WITNESS WHEREOF the Landlord and the Tenant have executed this
Lease as of the day of October, 2000.

 LANDLORD:                           PAULS PROPERTIES CORPORATION

                                     _________________________c/s
                                     Name:
                                     Authorized signatory

                                     ____________________________
                                     Name:
                                     Authorized signatory
                                     I/We have authority to bind the corporation

TENANT:                              CERTICOM CORP.

                                     /s/ Robert Williams
                                     -------------------------c/s
                                     Name: ROBERT WILLIAMS
                                     Authorized signatory

                                     ____________________________
                                     Name:
                                     Authorized signatory
                                     I/We have authority to bind the corporation
<PAGE>

                                                                              39

                                 SCHEDULE "A"

                       PROPOSED NEW MULTITENANT FACILITY
                                      FOR
                             THE PAULS CORPORATION
                             MISSISSAUGA, ONTARIO

                                  [AREA PLAN]

<PAGE>

                                                                              40

                [BUILDING ELEVATION WITH SECOND STOREY GLAZING]
<PAGE>

                                                                              41

                                SCHEDULE "B 1"

                         (Legal description of Lands)

That portion of Parts 3,4,7,15,16 and 17 of Registered Plan 43R-23593 as
outlined approximately in red on Schedule "B3". Part of Lot 2 concession 4 east
of Hurontario Street, City of Mississauga.

(Explanation: Being approximately 7.3 acres comprising 1980 Matheson Blvd. East,
Mississauga and approximately 5.3 acres comprised of approximately 2-3 acres of
woodlot and a land parcel of approximately 2-3 acres which is zoned M2 on the
northeast corner of Matheson Blvd. East and Creekbank Road. The entire parcel
being 1980 Matheson, the woodlot and the corner lot are all registered as one
site at this time.)
<PAGE>

                                                                              42

                                 SCHEDULE "B 2"

                     (Legal description of Expansion Land)

That portion of Parts 3,4,7,15,16 and 17 of Registered Plan 43R-23593 as
outlined approximately in yellow on Schedule "B3" . Part of Lot 2 concession 4
east of Hurontario Street, City of Mississauga.

(Explanation: Being approximately 7.3 acres comprising 1980 Matheson Blvd. East,
Mississauga and approximately 5.3 acres comprised of approximately 2-3 acres of
woodlot and a land parcel of approximately 2-3 acres which is zoned M2 on the
northeast corner of Matheson Blvd. East and Creekbank Road. The entire parcel
being 1980 Matheson, the woodlot and the corner lot are all registered as one
site at this time.)
<PAGE>

                                                                              43

                                 SCHEDULE "B3"

                            [GRAPHIC APPEARS HERE]
<PAGE>

                                                                              44

                                 SCHEDULE "C"

                            [GRAPHIC APPEARS HERE]
<PAGE>

                                                                              45

                                 SCHEDULE "D"

                     ACKNOWLEDGEMENT OF COMMENCEMENT DATE
                     ------------------------------------

TO:               PAULS PROPERTIES CORPORATION
                          (the "Landlord")

                  The undersigned Tenant under a certain lease between the
 undersigned and the Landlord dated XX, 2000 (the "Lease"), hereby acknowledges
 and certifies to you that:

 1.      The Commencement Date of the Lease was the XX day of XX, 2000.

 2.      We have accepted possession of the Leased Premises pursuant to the
         terms of the Lease and are now in possession thereof.

 3.      The Leased Premises have been erected and delivered in accordance with
         the terms of the Lease.

 4.      The Leased Premises have been fixtured and our normal business
         operations are being conducted therein.

 5.      There has been no violation of any of the terms of the Lease, there
         is no set-off of Rent or any other payment under the Lease, and none
         of the Rent reserved under the Lease has been prepaid.

 6.      There is no violation of any of the terms of the Lease either on the
         part of the Landlord or the Tenant.

 7.      The Lease is now in full force and effect in accordance with the terms,
         and there are no oral or written modifications, violations or
         alterations thereof.

 8.      We have no knowledge of any assignment of the Lease.

         DATED at XXXX this XX day of XX, 2000.

                                                     TENANT

 ____________________________________
 Authorized signatory
 c/s

 ____________________________________
 Authorized signatory
<PAGE>

                                                                              46

                                 SCHEDULE "E"

RULES AND REGULATIONS
---------------------

1.  The sidewalks, driveways, parking areas, entry passages, fire escapes and
    stairways, if any, shall not be obstructed by any of the tenants, or used by
    them for any purpose other than ingress and egress to and from their
    respective premises. The Tenant shall not place or allow to be placed in the
    Leased Premises any waste paper, dust, garbage, refuse or anything whatever
    that would tend to make them unclean or untidy.

2.  The water closets or other water apparatus shall not be used for any purpose
    other than those for which they were constructed, and no sweepings, rubbish,
    rags, ashes or other substances shall be thrown therein. Any damage
    resulting from misuse shall be borne by the Tenant by whom or by whose
    agents, servants or employees the same is caused. The Tenant shall not let
    the water run unless it is in actual use, nor shall they deface any part of
    the Leased Premises.

3.  The Tenant shall do or permit anything to be done in their respective
    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 any fire department or any board of health.

4.  The Tenant, its clerks or servants shall not interfere with other tenants or
    those having business with them.

5.  Nothing shall be thrown by the Tenant, its clerks or servants out of the
    windows or doors.

6.  No birds or animals shall be kept in or about the Leased Premises nor shall
    the Tenant operate or permit to be operated any musical or sound producing
    instrument or device inside or outside their respective premises which may
    be heard outside their premises, or which may be deemed to be a nuisance to
    other tenants of the Leased Premises.

7.  No one shall use the Building or any part thereof for sleeping apartments or
    residential purposes or for the storage of personal effects or articles
    other than those required for business purposes,

8.  The Tenant must observe strict care not to allow its windows or doors to
    remain open so as to admit rain or snow or so as to interfere with the
    heating of the Building. Any injury or damage caused to the Building or its
    appointments, furnishings, heating and other appliances or to any other
    tenant by reason of windows or doors being left open so as to admit rain or
    snow or by interference with or neglect of the heating appliances or by
    reason of the Tenant or other person or servant subject to it shall be made
    good by the Tenant.

9.  It shall be the duty of the Tenant to assist and co-operate with the
    Landlord in preventing injury to the Leased Premises.

10. No inflammable oils or other inflammable, dangerous or explosive materials
    shall be kept or permitted to be kept in the Leased Premises. Nothing shall
    be placed on the outside of window sills or projections.

11. No bicycles or other vehicles shall be brought within the Building except in
    the parking garage, if any.

12. The parking of cars, shall be subject to the reasonable regulations of the
    Landlord, but no fee may be charged therefor.

13. The Tenant shall not mark, paint, drill into or in any way deface the walls,
    ceilings, partitions, floors or other parts of the Building except with the
    prior written consent of the Landlord as it may direct.

14. The Tenant agrees to surrender to the Landlord on the termination of the
    Lease all keys to the said Building.

15. If the Tenant desires telegraph or telephone, it shall be the Tenant's
    responsibility to call Bell or other private signal connectors and the
    Landlord reserves the right to direct the electricians or other workmen as
    to where and how the wires are to be introduced, and without such
    directions no boring or cutting for wires shall take place. No other wires
    of any kind shall be introduced without the written consent of the Landlord.

16. Nothing shall be placed on the outside of windows or projections of the
    Leased Premises. No air-conditioning equipment shall be placed at the
    windows of the Leased Premises without the prior written consent of the
    Landlord.

17. All glass, locks and trimmings in or upon the doors or windows of the Leased
    Premises shall be
<PAGE>

                                                                              47

    kept whole and whenever any part thereof shall become broken, the same shall
    be immediately replaced or repaired under the direction and to the
    satisfaction of the Landlord, and such replacements and repairs shall be
    paid for by the Tenant.

18. No heavy equipment of any kind shall be moved within the Building without
    skids being placed under the same, and without the consent of the Landlord
    in writing.

19. Any person entering upon the roof of the Building does so at his own risk.

20. The Tenant shall not be permitted to do cooking or to operate cooking
    apparatus except in a portion of the Building leased or designed for that
    purpose.

21. The Tenant shall leave the Leased Premises in a condition suitable for the
    performance by the Landlord or its janitorial services, if any.

22. The Landlord shall have the right to make such other and further reasonable
    rules and regulations as in its judgement may from time to time be needful
    for the safety, care, cleanliness and appearance of the Leased Premises, and
    for the preservation of good order therein and the same shall be kept and
    observed by the Tenant, its clerks and servants.
<PAGE>

                                                                              48

                                 SCHEDULE "F"

SUPPLEMENTARY LEASE PROVISIONS
------------------------------

         With reference to the Lease dated October 12th, 2000, made between
PAULS PROPERTIES CORPORATION, as Landlord, and CERTICOM CORP., as Tenant, in
respect of the Leased Premises known municipally as 1980 Matheson Boulevard
East, Mississauga, the following supplementary provisions shall, for all intents
and purposes, form part of the Lease.

         1.      PARKING

         The Landlord agrees that the Tenant will have exclusive access to and
use of all available parking on the Lands. The Landlord covenants and agrees
that based upon the configuration for the parking lot component of the Leased
Premises as shown on Schedule "A" to the Lease, the Tenant shall have the use of
approximately four hundred and thirteen (413) unreserved parking spaces.

         In addition, the Tenant shall be entitled, strictly subject to the
provisions of Section 8.02 of this Lease, and to the provisions of Schedule "F"
of the Agreement to Lease, to construct upon the Lands and thereafter maintain,
repair and replace at its sole expense, a parking garage.

         2.       OPTION TO RENEW

         Provided that the Tenant is Certicom Corp. or a permitted assignee
hereunder and is not in material default under the Lease, the Tenant shall be
entitled to two (2) options to extend the Term of this Lease in respect of the
whole of the Leased Premises, on an "as is" basis, each such option being for an
additional or extended term of five (5) years commencing on the first day
following the expiration of the Term, or the expiration of the first renewal
term, as the case may be. The Tenant's option in each case shall be deemed to
have been exercised automatically unless the Tenant has provided the Landlord
with Notice no later than nine (9) months prior to the expiry of the Term or the
first renewal term, as the case may be, to the effect that the Tenant elects not
to extend the Term hereof. Each extension of the Term shall be on the same terms
and conditions as herein contained, including any personal rights, save that:

          (a)      there shall be no further options to extend the Term beyond
                   the second renewal term;

          (b)      there shall be no Landlord's Work and no Tenant's Work, as
                   defined in Section 8.1 of the Agreement to Lease;

          (c)      there shall be no "phases" for purposes of Rent commencement;

          (d)      there shall be no Allowance as provided for in Section 8.4 of
                   the Agreement to Lease;

          (e)      there shall be no Tenant's conditions;

          (f)      there shall be no purchase option in respect of the Expansion
                   Lands as contemplated in Section 21 of the Agreement to
                   Lease;

          (g)      the Basic Rent for each of the first renewal term and the
                   second renewal term, shall be agreed upon by the Landlord and
                   the Tenant prior to the expiration of the Term, or the first
                   renewal term, as the case may be, and it shall be equal to
                   the then current Fair Market Minimum Rent as at the
                   commencement of such renewal term. For the purposes of this
                   paragraph the phrase "Fair Market Minium Rent" means the net
                   rental rate payable for comparable space, for a comparable
                   term, in comparable office buildings in the Airport Corporate
                   Centre area, without allowance for any value of Leasehold
                   Improvements or leasehold allowances. The "Airport Corporate
                   Centre" shall be defined as the area bounded on the north by
                   Highway 401, on the south by Eglinton Avenue, on the east by
                   Renforth Avenue and on the west by Creekbank Road. Failing
                   agreement on the Fair Market Minium Rent in respect of the
                   first renewal term or the second renewal term, prior to the
                   expiration of the prior term, the Fair Market Minimum Rent
                   shall be determined by arbitration pursuant to the provisions
                   of the Arbitration Act, 1991 (Ontario). Without limiting the
                   foregoing the annual Fair Market Minimum Rent payable in
                   respect of the first year of any renewal term shall in no
                   event be less than the Basic Rent payable under the Lease in
                   respect of the immediately preceding year of the Term or of
                   the first renewal term, as the case may be.

          3.       RIGHT OF FIRST OFFER TO LEASE EXPANSION SPACE

          Provided that the Tenant is Certicom Corp. or a permitted assignee
hereunder and is not in material default under the Lease, then if the Landlord
intends to offer for lease space in a building which the Landlord has
constructed, is constructing or plans to construct on the Expansion Land (the
"Expansion Space"), the Tenant shall have a one-time right of first offer (the
"Right of First Offer") to lease all or a

<PAGE>

                                                                              49

portion of the Expansion Space for a term of ten (10) years or such shorter term
as agreed by the Landlord and Tenant. The Landlord shall notify the Tenant in
writing of the Expansion Space and the terms and conditions upon which the
Landlord is prepared to lease such Expansion Space to the Tenant (the
"Expansion Notice"). The Tenant shall have fifteen (15) business days from
receipt of the Expansion Notice to provide an offer to the Landlord for all or a
portion of the Expansion Space and the Tenant and the Landlord shall negotiate
in good faith the terms and conditions of the Tenant's offer for a period of ten
(10) business days. It is agreed and understood that if the Tenant chooses to
lease a portion of the Expansion Space, the unleased portion must be of a size
and in a location that is leaseable to a third party, in the Landlord's
reasonable opinion. In the event the Tenant and Landlord agree on the terms and
conditions for the leasing of the Expansion Space, such terms and conditions
shall be incorporated into a separate lease on the Landlord's standard form
incorporating such revisions as may be reasonably requested by the Tenant or its
solicitors and such lease, shall be executed by the Tenant and the Landlord.

          In the event that the Tenant and the Landlord fail to agree on the
terms and conditions for the leasing of the Expansion Space or the Tenant fails
to or chooses not to exercise its Right of First Offer, the Tenant's Right of
First Offer shall be null and void and the Landlord shall be free to lease the
Expansion Space to other tenants with no further obligation to the Tenant.

          It is agreed and understood that the lease for the Expansion Space
shall be on the same terms and conditions as the Lease for the Leased Premises
save and except the Basic Rent for the Expansion Space shall be Fair Market
Minimum Rent, as defined in paragraph 2 above; the scope of the Landlord's Work
will be redefined for a typical base building package offer to any third party;
there shall be no further rights of first refusal, no phasing of occupancy, no
allowance, no right of first offer to purchase, no Tenant's conditions and no
concept of Expansion Land; parking provided will be redefined in accordance with
the City of Mississauga by-laws and regulations in effect at that time; and
Landlord's covenants, representations and warranties will be redefined to be
typical for any third party tenant.

          4.      FIRST RIGHT OF OFFER TO LEASED PREMISES

          Provided that the Tenant is Certicom Corp. or a permitted assignee
hereunder and is not in material default under the Lease, the Tenant shall have
a one time right of first offer to purchase the Leased Premises on the following
terms and conditions. Within fifteen (15) business days of the Landlord
determining to sell the Leased Premises, the Landlord shall by Notice to the
Tenant (the "Landlord Notice") indicate such intention and set out the proposed
business terms upon which the Landlord is prepared to sell the Leased Premises.
The Tenant shall have fifteen (15) business days to submit to the Landlord an
offer to purchase the Leased Premises upon such proposed business terms, or upon
such other terms as the Tenant deems advisable and the Tenant and the Landlord
shall negotiate in good faith the terms and conditions for the purchase of the
Leased Premises. If the Landlord and Tenant fail to agree on the terms and
conditions for such purchase within ten (10) business days of delivery of the
Tenant's offer to the Landlord, then the Tenant's first right to purchase the
Leased Premises shall be deemed to have been waived and the Landlord shall be
free to sell the Lease Premises to a third party on such terms and conditions as
may be acceptable to the Landlord. Without limiting the generality of the
foregoing, the Tenant acknowledges that the provisions of this paragraph shall
not apply to the sale by the Landlord of less than an undivided fifty percent
(50%) interest in the Leased Premises. For the purposes of this paragraph 4, the
term "business day", shall mean Monday to Friday, excluding statutory
holidays.
<PAGE>

                                                                              50

                                 SCHEDULE "G"

INCORPORATED EXCERPTS FROM AGREEMENT TO LEASE
---------------------------------------------

With reference to the Lease dated October 12, 2000, made between PAULS
PROPERTIES CORPORATION, as Landlord, and CERT COM CORP., as Tenant, in respect
of the Leased Premises known municipally as 1980 Matheson Boulevard East,
Mississauga, and with respect to the AGREEMENT TO LEASE between the same
parties dated the 6/th/ day of October, 2000, and referred to in the Lease or
such Lease, the following provisions of the Agreement to Lease shall be and are
hereby deemed incorporated into the Lease, as contemplated in Section 2.03
thereof:

 8.       LANDLORD'S AND TENANT'S WORK

 8.1      The Landlord shall, at its own expense, perform and complete the work
          and improvements to the Leased Premises shown on the plans and
          specifications prepared by Giffels dated January 18, 2000, revised
          March 22, 2000, on or before the Possession Date, save and except the
          landscaping and top coat of asphalt which will be complete by June 1,
          2001 (collectively, the "Landlord's Work"). The Landlord's Work will
          be modified as requested by the Tenant at its expense and approved by
          the Landlord to accommodate a single user, both parties to act
          reasonably. The Tenant intends to perform its own leasehold
          improvements to the Leased Premises at the Tenant's sole expense (the
          "Tenant's Work") following approval by the Landlord of the Tenant's
          plans and specifications, such approval not to be unreasonably
          withheld or unduly delayed. Any and all Tenant's Work done prior to
          the Commencement Date or during the Term or any renewals shall be done
          in accordance with Schedule "F" attached. All work and improvements
          by Landlord and Tenant shall be performed in a good and workmanlike
          manner in accordance with all applicable building codes and laws using
          quality materials which are proper for the purpose. The actual space
          plan conforming to the dimensions of the Leased Premises shall be
          prepared by the Tenant, however, the Landlord agrees to contribute
          Seven Cents ($0.07) per square foot of the Leased Premises for the
          preparation of such preliminary plan, such sum payable upon execution
          of this Offer by the Landlord and the Tenant and waiver of all
          conditions. The Landlord hereby consents to and agrees to co-operate
          with the Tenant's contractor with respect to the construction of the
          Tenant's Work.

8.2       Without limiting the extent of the Landlord's Work identified by
          Giffels, such work will include the following items to be completed by
          the Landlord at its sole expense. In the event of a conflict between
          the Landlord's Work identified by Giffels and this provision, this
          provision shall govern:
          (i)      24 foot clear glass and precast single story structure with
                   bay sizes of approximately 36 ft.X40 ft.. Roof is built-up 4-
                   ply on metal deck with insulation factor of R20;
          (ii)     Concrete floors of approximately 4" inches thick (20 MPa at
                   28 days);
          (iii)    Ordinary hazard sprinkler system distributed on an open plan
                   basis;
          (iv)     Sufficient power including without limitation, 1170 KW
                   capacity, 1200 amp/600 volt service to a panel, not
                   distributed;
          (v)      Domestic water and sanitary line to two (2) locations as
                   shown on the Tenant's plans;
          (vi)     Exterior parking and landscaping as per base building
                   design;
          (vii)    Intentionally deleted;
          (viii)   Supply and install base building standard glass along the
                   second-storey face of the Building fronting on the adjacent
                   creek, all as shown on Schedule "A1" attached;
          (ix)     Install at the Tenant's cost additional skylights not part
                   of the base building, supplied by the Tenant at its cost,
                   according to the Tenant's plan in compliance with Schedule
                   "F"; provided that the Tenant delivers plans to the Landlord
                   showing the exact size, location and design of the skylights
                   no later than November 15, 2000 and failing this delivery,
                   the Landlord shall be permitted a delay on completion of
                   this portion of the Landlord's Work only on the basis of one
                   day after the Possession Date for each day of delay by the
                   Tenant, it being understood that if the Tenant does not
                   provide drawings as required herein, this item will not be
                   considered to be a delay to the Possession Date;
          (x)      Reduce the number of truck level doors specified in the
                   Landlord's Work to the requirement of the Tenant, such
                   requirement to be defined by the Tenant and approved by the
                   Landlord no later than November 15, 2000. Space left open by
                   removal of truck doors to be replaced with building standard
                   glass and redundant ramps to be levelled and paved for car
                   parking;
          (xi)     Relocate (and possibly reduce) the parking lot according to
                   the Tenant's plan to allow for more "green space" between the
                   Building and the adjacent creek, all as more particularly
                   shown on Schedule "A" attached;
          (xii)    Supply and install a one (1) meter high berm on the norm-
                   west corner of the property to obscure passing traffic;
          (xiii)   Supply and install a privacy fence on the south side of
                   Matheson Boulevard adjacent from the Building, subject to the
                   prior approval of the City of Mississauga.

8.3       The Landlord warrants the Landlord's Work for a period of one (1) year
          from the Commencement Date or such longer period as set forth in the
          Summary of Warranties attached
<PAGE>

                                                                              51

     hereto as Schedule "E". The Landlord shall promptly repair and correct all
     defects upon written notice from the Tenant.

8.4  (a)  The Landlord agrees to provide the Tenant with a leasehold allowance
          (the "Allowance") equal to One Million Dollars ($l,000,000), to assist
          the Tenant with expenses related to completion of the Tenant's Work.

     (b)  If:

          i)   all or any part of the Allowance is not paid by the Landlord
               within twenty (20) business days of request from the Tenant; and
          ii)  the Tenant delivers written notice of default to the Landlord and
               such default is not cured by the Landlord within fifteen (15)
               ordinary days of such notice of default; and
          iii) a further notice is sent by the Tenant to the Landlord providing
               notice of its intention to set-off the unpaid amount against
               Minimum Rent and Additional Rent,

          interest shall accrue on such unpaid amounts at the rate of 2% per
          month (24% per annum) calculated and payable monthly from the date of
          default in subparagraph (b)(i) hereof until such unpaid amounts are
          paid in full. Upon issuance of the notice of set-off described in iii)
          above, the Tenant shall have the right to set off any and all of the
          amounts owing by the Landlord on account of the Allowance, including
          interest as set out in this provision, against the Minimum Rent and
          Additional Rent owing by the Tenant to the Landlord.

     (c)  The amount of the Allowance shall be paid in increments of no less
          than two hundred fifty thousand dollars ($250,000) to the Tenant by
          the Landlord as Tenant's Work progresses as certified by Tenant's
          architect and the value of such work is verified by the Landlord,
          provided that the final ten percent (10%) of the Allowance shall not
          be paid until satisfaction of the following conditions: 1) forty-five
          (45) days after substantial completion of the Tenant's Work and
          receipt by the Landlord of: (a) an architect's certificate confirming
          substantial completion and (b) a statutory declaration from the
          Tenant's general contractor confirming that all work is substantially
          complete and that no liens have been registered against the Leased
          Premises following publication as required by law, 2) the Tenant is in
          occupancy of at least Phase 1 of the Leased Premises and 3) the Tenant
          is not in material default under the Lease.

8.5  As part of the Tenant's Work and in accordance with Schedule "F" herein,
     the Tenant, is permitted to install a mezzanine in the Building, at the
     Tenant's expense, subject to the Landlord's reasonable approval of design,
     location, configuration and interior fit-up and subject to compliance with
     all governmental requirements in respect thereof including, but not
     limited to, access and parking requirements. There is no additional
     Minimum Rent payable for the mezzanine, however, the Tenant will pay for
     applicable development charges (if any) and any increase in operating costs
     or realty taxes charged by the municipality as a result of the
     construction of the mezzanine. Notwithstanding the provisions of section
     14.1 of this Offer, if the Landlord bona fide requires that the mezzanine
     be removed at the expiry of the Term or any renewal thereof for purposes
     of leasing all or a part of the Building to a new tenant, then the Tenant
     and Landlord agree to share equally the actual cost of removal of the
     mezzanine, based on the lowest cost estimate obtained by each party. If not
     removed, the Tenant agrees to pay the actual cost of work necessary to
     upgrade the mezzanine to comply with all applicable governmental
     requirements in effect as at the relevant expiry date of the Lease but in
     any event, the Tenant's cost of such compliance cannot exceed the amount
     that the Tenant would have paid as its fifty percent (50%) share of the
     cost of removal of the mezzanine.

16.  LANDLORD COVENANTS, REPRESENTATIONS AND WARRANTIES

     (a)  The Landlord covenants, represents and warrants to the Tenant that
          the Building and the Lands (including the Expansion Land (as
          hereinafter defined)) are entirely free of any contaminants which are
          or may be deemed to be dangerous to the environment or to the health
          of persons at levels exceeding those permitted by applicable
          legislation. The Tenant warrants that it shall not contaminate the
          Building or the Lands in violation of environmental law at any time
          throughout the Term and any renewal thereof;

     (b)  The Landlord is the registered and beneficial owner of the Lands and
          the Building;

     (c)  The Landlord will not proceed with any energy conservation
          modifications to the
<PAGE>

                                                                              52

             Building which will increase operating costs without first
             obtaining the approval of the Tenant, which approval may be
             unreasonably or arbitrarily withheld.

     Further, the Landlord covenants as at the Commencement Date the following
statements are true:

     (I)     the Leased Premises are zoned Ml and permit the use of the Leased
             Premises as a warehouse, ancillary storage, light assembly and
             office;
     (II)    the Building allows the Tenant to have access and control of
             HVAC and lighting seven days per week, 24 hours per day;
     (III)   the Tenant receives 24 hour access to the electrical panels for the
             Leased Premises by means of a key;
     (IV)    Telephone lines are available within the Leased Premises;
     (V)     the Building complies with the requirements of all governmental
             laws and regulations for the uses stated in (I) above;
     (VI)    the Leased Premises permit handicapped access;
     (VII)   the Tenant shall be permitted to install at its expense, at any
             time during the Term and any renewal thereof, an emergency
             generator so as to permit the computers located in the Leased
             Premises to operate indefinitely throughout any power interruption;
             and
     (VIII)  the Landlord will provide lighting in the parking lot to provide
             adequate security on the Lands, all in accordance with the
             Landlord's Work (as defined in section 8.1 herein).

     SCHEDULE "F"

TENANT'S WORK
-------------

Following the Landlord's completion of its work as outlined herein, the Landlord
     shall not be obliged to complete any further work in or for the Leased
     Premises except as set out in the Offer to Lease and the Lease. The Tenant
     may construct and complete leasehold improvements and fixtures (the
     "Improvements") in the Leased Premises prior to the Commencement Date
     and/or during the Term provided that:

          (a)  the Tenant shall furnish the Landlord with professionally
          prepared plans and specifications therefore for its approval;
          whenever any change in or addition to base building work is required
          to accord with the Improvements, or is agreed to be made by the
          Landlord at the request of the Tenant, the cost or expense of such
          change shall be for the account of the Tenant and shall include all
          reasonable cost and expense incurred by the Landlord in connection
          with the change or addition including labour, materials, fees of
          architects, engineers or designers in connection with the change or
          addition, direct costs of supervision and inspection and all other
          direct costs of the Landlord, subject to the Cap described in
          paragraph (h) below;

          (b)  if any proposed Improvements affect the structure, the
          structural walls, the base building systems or the exterior appearance
          of the Building, such plans and specifications shall also require
          approval, at the election of the Landlord, by its architect and
          engineers;

          (c)  the Tenant shall advise the Landlord of the identity of its
          contractors and tradesmen and their respective labour affiliation; in
          no event may the Tenant proceed with construction of any Improvements
          until it has obtained all necessary governmental permits and other
          approvals and has produced evidence of insurance coverage satisfactory
          to the Landlord;

          (d)  the Landlord shall either approve any contractors proposed by the
          Tenant to perform any work which may affect the structure, the
          structural walls or the base building systems of the Building or
          require that any such work be performed by either the Landlord or its
          contractors at competitive prices in which case the Tenant shall pay
          the Landlord's reasonable costs on account thereof; the Landlord may
          refuse to allow the contractors and tradesmen of the Tenant access to
          the Building if their labour affiliations may conflict with those of
          the Landlord or those employed by it or if they are not competent;

          (e)  construction of the Improvements shall be performed in accordance
          with the plans and specifications submitted .o and approved by the
          Landlord and in a good and workmanlike and expeditious manner using
          good quality materials;

          (f)  the Landlord may inspect construction as it proceeds at its
          expense;

          (g)  if the Tenant fails to observe any of the material requirements
          of this section the Landlord may require that construction stop until
          Tenant complies with such requirements; and
<PAGE>

                                                                              53

          (h)  the Tenant shall pay the Landlord's reasonable costs and fees
          incurred in respect of the supervising, coordinating monitoring,
          reviewing and approving of the construction of the Improvements
          including all professional fees incurred by the Landlord, such costs
          not to exceed in aggregate for initial construction twenty-five cents
          ($0.25) per square foot and during the Term, ten cents ($0.10) per
          square foot (the "Cap").

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