Document:

<PAGE>

                                                                    EXHIBIT 10.6

                                THIRD AMENDMENT
                                       TO

                                CREDIT AGREEMENT
                                ----------------

              THIS THIRD AMENDMENT, dated as of July 20, 2000 ("Third
Amendment"), is by and among CHANNELL COMMERCIAL CORPORATION ("Borrower"), a
Delaware corporation, the financial institutions signatory hereto (collectively,
the "Lenders") and FLEET NATIONAL BANK, as Administrative Agent for the Lenders
(in such capacity, together with its successors in such capacity, the "Agent").

                             PRELIMINARY STATEMENTS

              The Borrower requests that the Lenders (i) increase the amount of
the Facility under the Credit Agreement from $30,000,000 to $40,000,000, (ii)
allow for a $10,000,000 Term A Advance and (iii) make certain other changes to
the Credit Agreement and the Lenders are willing to do so, upon and subject to
the terms and conditions of this Third Amendment.

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

Article I.    Amendments to Credit Agreement.
              -------------------------------

              This Third Amendment shall be deemed to be an amendment to the
Credit Agreement, and shall not be construed in any way as a replacement
therefor. All of the terms and provisions of this Third Amendment, including,
without limitation, the representations and warranties set forth herein, are
hereby incorporated by reference into the Credit Agreement as if such terms and
provisions were set forth in full therein. Capitalized terms used herein and not
otherwise defined shall have the meaning ascribed to them in the Credit
Agreement. The Credit Agreement is hereby amended in the following respects:

              1.1  Preliminary Statement (2) to the Credit Agreement is hereby
amended by deleting the words "Thirty Million Dollars ($30,000,000)" and
replacing them with "Forty Million Dollars ($40,000,000)";

              1.2  Schedule I of the Credit Agreement is hereby amended so that
such Schedule shall be as set forth in Exhibit A to this Third Amendment;
                                       ---------

              1.3  Section 1.01, Certain Defined Terms, is amended as follows:
                                 ---------------------

                                       1
<PAGE>

              (a)  Each of the following definitions is amended and restated to
read in its entirety as follows:

              "Advance" means a Term A Advance, a Revolving Advance, an
               -------
Alternative Currency Revolving Advance, a Letter of Credit Advance or an
Alternative Currency Letter of Credit Advance.

              "Borrowing" means a Term A Borrowing, a Revolving Borrowing or an
               ---------
Alternative Currency Revolving Borrowing.

              "Commitment" means a Term A Commitment, a Revolving Commitment, an
               ----------
Alternative Currency Revolving Commitment, a Letter of Credit Commitment or an
Alternative Currency Letter of Credit Sub-Commitment.

              "Facility" means the Term A Facility, the Revolving Facility, the
               --------
Alternative Currency Revolving Facility, the Letter of Credit Facility or the
Alternative Currency Letter of Credit Facility.

              "Lenders" means the Initial Lenders, the Alternative Currency
               -------
Revolving Lenders, the Term A Lenders, the Issuing Banks and each Person that
shall become a Lender hereunder pursuant to Section 10.07.

              "Note" means a Term A Note, a Revolving Note, an Alternative
               ----
Currency Revolving Note and any promissory note issued by the Borrower in
replacement or substitution thereof.

              "Required Lenders" means at any time Lenders owed or holding
               ----------------
greater than sixty-six and 2/3 percent (66 2/3%) of the sum of (i) the aggregate
principal amount of the Advances outstanding at such time, and (ii) the
aggregate Available Amount of all Letters of Credit and Alternative Currency
Letters of Credit or, if no such principal amount is outstanding at such time,
Lenders holding greater than sixty-six and 2/3 percent (66 2/3%) of aggregate of
the Term A Commitments and the Revolving Commitments; provided, however, that if
                                                      --------  -------
any Lender shall be a Defaulting Lender at such time, there shall be excluded
from the determination of Required Lenders at such time (a) the aggregate
principal amount of the Advances owing to such Lender (in its capacity as a
Lender) and outstanding at such time, and (b) the Term A Commitment and
Revolving Commitment of such Lender at such time.  For purposes of this
definition, the aggregate principal amount of Letter of Credit Advances and
Alternative Currency Letter of Credit Advances owing to the Issuing Bank and the
Available Amount of each Letter of Credit and each Alternative Currency Letter
of Credit shall be considered to be owed to the Revolving Lenders ratably in
accordance with their respective Revolving Credit Commitments.

              (b)  The existing definition of "Alternative Currency Revolving
                                               ------------------------------
Sub-Limit" is amended to change the reference to "$8,000,000" to read
---------
"$18,000,000".

              (c)  The existing definition of "Applicable Margin" is amended by
                                               -----------------
inserting, after the initial ":" the following:

                                      -2-
<PAGE>

                   "Applicable Margin for Term A Advances
                    -------------------------------------

                    Applicable      Applicable
                    Margin for      Margin for
                    Base Rate       LIBOR Rate
                    Advances        Advances
                    ----------      --------

                        0%           1.125%"

and by adding the following as the final sentence in such definition:

              "Notwithstanding any provision or implication contained above or
              elsewhere in this Agreement to the contrary, the Applicable Margin
              for Term A Advances shall not be based on or in any way affected
              or changed by the ratio of Total Consolidated Debt to Consolidated
              EBITDA."

              (d)  Clause (a) of the existing definition of "Interest Period"
                                                             ---------------
is deleted in its entirety and replaced by the following:

              "(a) The Borrower may not select any Interest Period with respect
        to any LIBOR Rate Advance under a Facility that ends after any principal
        repayment installment date for such Facility unless, after giving effect
        to such selection, the aggregate principal amount of Base Rate Advances
        and of LIBOR Rate Advances having Interest Periods that end on or prior
        to such principal repayment installment date for such Facility shall be
        at least equal to the aggregate principal amount of Advances under such
        Facility due and payable on or prior to such date;"

              (e)  The following definitions are inserted in proper alphabetical
        order:

              "Egerton Intercompany Note" means the Intercompany Note dated as
               -------------------------
of the date of the Third Amendment evidencing the advances made by the Borrower
to A. C. Egerton (Holdings) Limited in the face principal amount of $18,000,000,
and issued in replacement and substitution for the Intercompany Note dated as of
February 1, 2000 issued in connection with the Second Amendment; as the same may
from time to time be amended, restated, modified, supplemented or replaced to
the extent permitted by this Agreement and the other Loan Documents.

              "Guaranty" shall mean, collectively, (a) the Guarantee dated
               --------
June 17, 1999 made by Egerton in favor of the Administrative Agent, as amended,
modified and supplemented from time to time, and (b) each other guaranty
executed and delivered by any Subsidiary or Loan Party in favor of the
Administrative Agent relating to the Obligations, as in effect from time to
time.

              "Term A Advance" has the meaning specified in Section 2.1(a).
               --------------

                                      -3-
<PAGE>

              "Term A Borrowing" means a borrowing consisting of simultaneous
               ----------------
Term A Advances of the same type made by the Term A Lenders.

              "Term A Commitment" means, with respect to any Term A Lender at
               -----------------
any time, the amount set forth opposite such Lender's name on Schedule I hereto
                                                              ----------
under the caption "Term A Commitment" or, if such Lender has entered into one or
more Assignments and Acceptances, set forth for such Lender in the Register
maintained by the Administrative Agent pursuant to Section 10.07(d) as such
Lender's "Term A Commitment," as such amount may be reduced at or prior to such
time pursuant to Section 2.5.

              "Term A Facility" means, at any time, the aggregate amount of the
               ---------------
Term A Lenders' Term A Commitments at such time.

              "Term A Lender" means any Lender that has a Term A Commitment.
               -------------

              "Term A Note" means a promissory note of the Borrower payable to
               -----------
the order of any Term A Lender, in substantially the form of Exhibit B to the
                                                             ---------
Third Amendment to Credit Agreement, evidencing the indebtedness of the Borrower
to such Lender resulting from the Term A Advance made by such Lender.

              "Third Amendment" means the Third Amendment to the Credit
               ---------------
Agreement dated as of July 20, 2000.

              "Third Amendment to Security Agreement" means the Third Amendment
               -------------------------------------
to Security Agreement dated as of July 20, 2000.

              1.4 Section 2.01, The Advances, is amended by inserting at the end
                                ------------
thereat a new clause (e) which shall read as follows:

              "(e) The Term A Advances. Each Term A Lender severally agrees, on
                   -------------------
the terms and conditions hereinafter set forth, to make a single advance (a
"Term A Advance") to the Borrower on the effective date of the Third Amendment
 --------------
to the Credit Agreement in an amount not to exceed such Lender's Term A
Commitment at such time. The Term A Borrowing shall consist of Term A Advances
made simultaneously by the Term A Lenders ratably according to their Term A
Commitments. Amounts borrowed under this Section 2.1(e) and repaid or prepaid
may not be reborrowed."

              1.5  Section 2.01(b), The Alternative Currency Revolving Advances,
                                    -------------------------------------------
is amended to change the reference therein to "$8,000,000" to read
"$18,000,000".

              1.6  Section 2.04, Repayment of Advances, is amended by inserting
                                 ---------------------
at the end thereof a new clause (d) which shall read as follows:

              "(d) Term A Advances.  The Borrower shall repay to the
                   ---------------
Administrative Agent for the ratable account of the Term A Lenders the aggregate
outstanding principal amount of the Term A Advances on the following dates in
the amounts indicated (which amounts shall be reduced as a result of the

                                      -4-
<PAGE>

application of prepayments in accordance with the order of priority set forth in
Section 2.06):

<TABLE>
<CAPTION>

                        "Date                    Amount
                         ----                    ------
                        <S>                   <C>

                         March 31, 2001        $  500,000
                         June 30, 2001         $  500,000
                         September 30, 2001    $  500,000
                         December 31, 2001     $  500,000
                         March 31, 2002        $  750,000
                         June 30, 2002         $  750,000
                         September 30, 2002    $  750,000
                         December 31, 2002     $  750,000
                         March 31, 2003        $1,250,000
                         June 30, 2003         $1,250,000
                         September 30,2003     $1,250,000
                         December 31, 2003     $1,250,000
</TABLE>

              provided, however, that the final principal installment shall be
              equal to the aggregate principal amount of the Term A Advances
              outstanding on such date."

              1.7  Subsection 2.05(b), Termination or Reduction of the
                                       -------------------------------
Commitments, is amended to renumber the existing clauses (i) and (ii) as (ii)
-----------
and (iii) respectively, and to insert a new clause (i) which shall read as
follows:

              "(i)  On the date of the Term A Borrowing, after giving effect to
         such Term A Borrowing, and from time to time thereafter upon each
         repayment or prepayment of the Term A Advances, the aggregate Term A
         Commitments of the Term A Lenders shall be automatically and
         permanently reduced, on a pro rata basis, by an amount equal to the
         amount by which the aggregate Term A Commitments immediately prior to
         such reduction exceed the aggregate unpaid principal amount of the Term
         A Advances then outstanding; provided, however, that the Term A
                                      --------  -------
         Commitments shall terminate, and all Advances made thereunder shall be
         repaid in full, no later than December 31, 2003."

              1.8  Section 2.06, Prepayments, is amended and restated in its
                                 -----------
entirety to read as follows:

              "SECTION 2.06  Prepayments.
                             -----------

              (a)  Optional.  The Borrower may, upon at least one (1) Business
                   --------
Day's notice in the case of Base Rate Advances and three (3) Business Days'
notice in the case of LIBOR Rate Advances, in each case to the Administrative
Agent stating the proposed date and aggregate principal amount of the
prepayment, and

                                      -5-
<PAGE>

if such notice is given the Borrower shall, prepay the outstanding aggregate
principal amount of the Advances, in whole or ratably in part, together with
accrued interest to the date of such prepayment on the aggregate principal
amount prepaid; provided, however, that (i) each partial prepayment shall be
                --------  -------
be in an aggregate principal amount of $500,000 or an integral multiple of
$100,000 in excess thereof and (ii) no such prepayment of a LIBOR Rate Advance
shall be made other than on the last day of an Interest Period therefor. Each
prepayment made pursuant to this subsection 2.06(a) shall be applied to repay
the Facilities in the following manner: first to prepay Revolving Advances then
                                        -----
outstanding until such Revolving Advances are paid in full; second to prepay
                                                            ------
Alternative Currency Revolving Advances then outstanding until such Alternative
Currency Revolving Advances are paid in full; third to prepay Letter of Credit
                                              -----
Advances then outstanding until such Advances are paid in full, fourth to prepay
                                                                ------
Alternative Currency Letter of Credit Advances then outstanding until such
Advances are paid in full and fifth to prepay Term A Advances then outstanding
                              ------
until the Term A Facility is repaid in full (such prepayments to be applied to
the installments of the Term A Advances in the inverse order of the maturity
thereof).

              (b) Mandatory.  (i)  Upon receipt by any Loan Party or any of its
                  ---------
     Subsidiaries of Net Cash Proceeds from any Asset Disposition, the Borrower
     shall prepay the then outstanding Advances in an amount equal to one-
     hundred percent (100%) of such Net Cash Proceeds payable concurrently with
     consummation of such Asset Disposition; provided that no such prepayment
                                             --------
     need be made (1) unless the Net Proceeds from any single Asset Disposition
     or series of related Asset Dispositions exceed $100,000 (in which case a
     prepayment shall be made in the amount of the entire Asset Disposition) or
     until the cumulative Net Proceeds from all Asset Dispositions by the
     Borrower in any particular fiscal year exceed $100,000 (in which case a
     prepayment shall be made in the amount of the Net Proceeds from the
     specific Asset Disposition (or portion thereof) causing the limit to be
     exceeded), except that the terms of this Section shall not be applicable
     with respect to Asset Dispositions by the Borrower or any Subsidiary if the
     Net Proceeds therefrom are reinvested in fixed assets (for use in its
     business or, with respect to the Borrower, the business of the
     Subsidiaries) within 180 days of such Asset Disposition, provided that any
                                                              --------
     such Net Proceeds not so reinvested shall be used to prepay the Advances on
     the 181st day; provided, however, that with respect to the Net Proceeds
                    --------  -------
     from the Orpington Sale/Leaseback, the Borrower shall have twenty-four (24)
     months from the closing of the Orpington Sale/Leaseback to reinvest such
     Net Proceeds in fixed assets (for use in its business), provided, that, if
                                                             --------
     such Net Proceeds from the Orpington Sale/Leaseback are not so reinvested
     within such twenty-four (24) month period, any such Net Proceeds not so
     reinvested shall be used to prepay the Advances on the Business Day
     immediately succeeding the second anniversary of the closing of the
     Orpington Sale/Leaseback.

              (ii)  Upon receipt by the Borrower or any of its Subsidiaries of
     Net Cash Proceeds from any Equity Issuance, the Borrower shall prepay the
     then

                                      -6-
<PAGE>

     outstanding Advances in an amount equal to one hundred percent (100%) of
     such Net Cash Proceeds payable concurrently with consummation of such
     issuance.

              (iii) Upon receipt by the Borrower or any of its Subsidiaries of
     Net Cash Proceeds from the sale or issuance by the Borrower or any of its
     Subsidiaries of any Debt (other than Debt permitted to be incurred under
     Section 7.02), the Borrower shall prepay the then outstanding Advances in
     an amount equal to one hundred percent (100%) of such Net Cash Proceeds
     payable concurrently with consummation of such sale or issuance.

              (iv)  Each prepayment made pursuant to clause (i), (ii), or (iii)
     shall be applied to prepay the Facilities in the following manner: first,
                                                                        -----
     to prepay Term A Advances then outstanding until the Term A Facility is
     repaid in full (such prepayments to be applied to the installments of the
     Term A Advances in the inverse order of the maturity thereof); second, to
                                                                    ------
     prepay Revolving Advances then outstanding until such Revolving Advances
     are paid in full; third to prepay Alternative Currency Revolving Advances
                       -----
     then outstanding until such Alternative Currency Revolving Advances are
     paid in full; fourth to prepay Letter of Credit Advances then outstanding
                   ------
     until such Advances are paid in full and fifth, to prepay Alternative
                                              -----
     Currency Letter of Credit Advances then outstanding until such Advances are
     paid in full.

              (v)   The Borrower shall, within fifteen (15) days following the
     end of each month in each Fiscal Year, pay to the Administrative Agent for
     deposit in the L/C Cash Collateral Account an amount sufficient to cause
     the aggregate amount on deposit in such Account to equal the (i) amount by
     which the aggregate Available Amount of all Letters of Credit then
     outstanding exceeds the Letter of Credit Facility on such Business Day plus
                                                                            ----
     (ii) the Dollar Equivalent amount by which the aggregate Available Amount
     of all Alternative Currency Letters of Credit then outstanding exceeds the
     Alternative Currency Letter of Credit Facility on such Business Day.

              (vi)  The foregoing notwithstanding, the provisions of this
     subsection 2.06(b) shall not be construed to permit any Equity Issuance,
     Debt issuance or Asset Disposition otherwise prohibited under the terms of
     this Agreement."

              1.9   Section 2.14, Use of Proceeds, is amended to delete the
                                  ---------------
period at the conclusion thereof and to insert in lieu thereof the following.

                    "provided that the full amount of the proceeds of the Term
                     -------- ----
A Advances shall be used to repay any Revolving Advances then outstanding."

              1.10  Section 6.18(b), Total Consolidated Debt to EBITDA, is
                                     ---------------------------------
amended and restated to read in its entirety as follows:

              "(b)  Total Consolidated Debt to EBITDA. Maintain as of the end of
                    ---------------------------------
         each fiscal quarter of the Borrower a ratio of (i) Total Consolidated
         Debt (other than trade credit, accrued expenses and income taxes
         payable) to (ii) EBITDA for

                                      -7-
<PAGE>

         the most recently completed four fiscal quarters of the Borrower of not
         more than the following: 2.00:1.00 during the period from the date of
         this Agreement to and including December 31, 1999; 1.50:1.00 during the
         period from January 1, 2000 to and including March 31, 2000; 1.75:1.00
         during the period from June 30, 2000 to and including December 31,
         2000; and 1.50:1.00 during the period from January 1, 2001 and at all
         times thereafter."

              1.11  Section 6.18(c), Fixed Charge Coverage Ratio, is amended by
                                     ---------------------------
deleting the grid therein and by replacing it with the following:

                    "Fiscal
                    Quarter Ending:      Not less than:

                    June 30, 2000          1.00:1.00
                    September 30, 2000     1.00:1.00
                    December 31, 2000      1.00:1.00
                    March 31, 2001         1.10:1.00
                    June 30, 2001          1.10:1.00
                    September 30, 2001     1.10:1.00
                    December 31, 2001      1.10:1.00
                    March 31, 2002         1.50:1.00
                    June 30, 2002          1.50:1.00
                    September 30, 2002     1.50:1.00
                    December 31, 2002      1.50:1.00
                    March 31, 2003         1.50:1.00
                    June 30, 2003          1.50:1.00
                    September 30, 2003     1.50:1.00
                    December 31, 2003      1.50:1.00"

              1.12 Section 7.01(d), Liens, Etc., is amended to insert
                                    -----------
immediately after the semicolon at the conclusion thereof the following:

              "and notwithstanding the terms of this Section 7.01(d) (if any) to
the contrary, no Liens (purchase money or otherwise) may exist on any real
property financed directly or indirectly with the proceeds of the indebtedness
evidenced by the Intercompany Note, except for Liens in favor of Channell (on
terms acceptable to the Agent) or the Agent;"

              1.13  Section 7.06(a), Investments in Other Persons, is amended
                                     ----------------------------
and restated in its entirety to read as follows:

                    "(a)  Investments by the Borrower and its Subsidiaries, if
any, in their Subsidiaries outstanding on the date hereof and described on
Schedule 7.06, and additional investments in Wholly-Owned Subsidiaries of the
-------------
Borrower in an aggregate amount invested from the date hereof not to exceed
$1,000,000; provided, however, that:
            --------  -------

                                      -8-
<PAGE>

              (i)   no more than an aggregate amount equal to $1,000,000 shall
be made in Investments from the date hereof in Foreign Subsidiaries, excluding
from such limitation any Investment in A.C. Egerton (Holdings)Limited set forth
in clause (ii) below;

              (ii)  any Investment in A.C. Egerton (Holdings) Limited,
individually and not on a consolidated basis with its subsidiaries (A) shall be
in the form of loans and shall be evidenced by an Intercompany Note in form and
substance satisfactory to the Administrative Agent, (B) shall be recorded by
Borrower on its books and records in a manner satisfactory to Agent, (C) shall
not exceed $18,000,000 at any time outstanding, (D) from and after the date of
the Third Amendment, at the time any such loan is made by Borrower and after
giving effect thereto, each of Borrower and A.C. Egerton (Holdings) Limited
shall be Solvent, and (E) no Default or Event of Default would occur and be
continuing after giving effect to any such proposed loan; and

              (iii) with respect to Investments in any newly acquired or created
Domestic Subsidiary, any such Subsidiary shall become a Guarantor pursuant to
the terms of the Guaranty and shall otherwise comply with the provisions of
Section 6.13 hereof;"

              1.14  Section 7.21, Capital Expenditures, is amended by deleting
                                  --------------------
the grid therein and by replacing it with the following:

          "Period                          Amount
           ------                          ------
January 1, 2000 through and
including December 31, 2000             $15,000,000

January 1, 2001 through and
including December 31, 2001             $15,000,000

January 1, 2002 through and
including December 31, 2002             $12,000,000

January 1, 2003 through and
including December 31, 2003             $12,000,000"

              1.15 Subsection 9.05 (c), Indemnification, is amended and
                                        ---------------
restated in its entirety to read as follows:

              "(c)  For purposes of Section 9.05(a), the Lenders' respective
         ratable shares of any amount shall be determined, at any time,
         according to the sum of (i) the aggregate principal amount of the
         Advances outstanding at such time and owing to the respective Lenders,
         (ii) their respective Pro Rata Shares of the aggregate Available Amount
         of all Letters of Credit and Alternative Letters of Credit outstanding
         at such time; (iii) their respective Term A Commitments at such time
         and (iv) their respective Unused Revolving Commitments at such time
         provided, that the Letter of Credit Advances and Alternative Letter
         --------
         of Credit

                                      -9-
<PAGE>

         Advances owing to the Issuing Bank shall be considered to be owed to
         the Issuing Bank ratably in accordance with their respective Advances.
         In the event that any Defaulted Advance shall be owing by any
         Defaulting Lender at any time, such Lender's Commitment with respect to
         the Facility under which such Defaulted Advance was required to have
         been made shall be considered to be unused for purposes of this Section
         9.05 to the extent of the amount of such Defaulted Advance. The failure
         of any Lender to reimburse the Administrative Agent or the Issuing Bank
         promptly upon demand for its ratable share of any amount required to be
         paid by the Lenders to the Administrative Agent or the Issuing Bank, as
         the case may be, as provided herein shall not relieve any other Lender
         of its obligation hereunder to reimburse the Administrative Agent or
         the Issuing Bank, as the case may be, for its ratable share of such
         amount, but no Lender shall be responsible for the failure of any other
         Lender to reimburse the Administrative Agent or the Issuing Bank, as
         the case may be, for such other Lender's ratable share of such amount
         but no Lender Party shall be responsible for the failure of any other
         Lender Party to reimburse the Administrative Agent or the Issuing Bank,
         as the case may be, for such other Lender Party's ratable share of such
         amount. Without prejudice to the survival of any other agreements of
         any Lender hereunder, the agreement and obligations of each Lender
         contained in this Section 9.05 shall survive the payment in full of
         principal, interest and all other amounts payable hereunder and under
         the other Loan Documents."

              1.16  The parties hereto confirm that all references in the Credit
Agreement to the "Egerton GRP Debt" and the "Egerton Intercompany Debt" shall
have no further force or effect due to the repayment in full of the Egerton GRP
Debt and the existence of the Egerton Intercompany Note, dated as of February 1,
2000, which was issued pursuant to the Second Amendment to Credit Agreement,
dated as of December 29, 1999, in order to reflect the advances made by the
Borrower to A.C. Egerton (Holdings) Limited to repay the Egerton GRP Debt and
for general working capital, which initial Egerton Intercompany Note is being
amended and restated and replaced as of the date hereof.

              1.17  The Borrower shall simultaneously with the execution and
delivery of this Third Amendment, execute and deliver in favor of each Lender a
Replacement Alternative Currency Revolving Note (each a "Replacement Alternative
                                                         -----------------------
Currency Note" and collectively the "Replacement Alternative Currency Notes")
-------------                        --------------------------------------
substantially in the form of Exhibit B to the Second Amendment, in principal
amount equal to the Alternative Currency Revolving Sub-Commitment of each Lender
as set forth on Exhibit A annexed hereto.

              1.18  Egerton shall, simultaneously with the execution and
delivery of this Third Amendment, execute and deliver in favor of the Borrower,
a replacement Egerton Intercompany Note, substantially in the form of Exhibit D
to the Second Amendment, in the principal amount of $18,000,000 and the Borrower
shall endorse such note over to the Administrative Agent.

                                      -10-
<PAGE>

              1.19  In order to effect the foregoing, the Lenders shall, on the
Effective Date, make appropriate adjustments among themselves in order that the
amount of Advances outstanding to the Borrower from any Lender under the Credit
Agreement is, in principal amount (as of the Effective Date), in the same
proportion to the outstanding aggregate principal amount of all Advances of the
respective type that such Lender's respective Commitment for such type of
Advances bears to the Aggregate Commitments for such Advances, after giving
effect to the amendments effected hereby. The Borrower agrees and consents to
the terms of this paragraph. Any and all costs associated with any Third
Amendment shall be borne by the Borrower.

Article II.   Representations and Warranties; Confirmations
              ---------------------------------------------

              In order to induce the Lenders and the Administrative Agent to
enter into this Third Amendment, the Borrower and each of the other Loan
Parties, jointly and severally, represent and warrant to the Lenders and the
Administrative Agent that:

              2.1  As of the date hereof, and after giving effect to this Third
Amendment, no Default or Event of Default shall have occurred or be continuing.

              2.2  As of the date hereof and after giving effect to this Third
Amendment, each and every one of the representations and warranties set forth in
the Loan Documents shall be true, accurate and complete in all respects and with
the same effect as though made on the date hereof, and each shall hereby be
incorporated herein in full by reference as if restated herein in its entirety,
except for any representation or warranty limited by its terms to a specific
date and except for changes in the ordinary course of business which are not
prohibited by the Credit Agreement (as amended hereby) and which shall not,
either singly or in the aggregate, have a Material Adverse Effect.

              2.3  The execution, delivery and performance by (i) the Borrower
of this Third Amendment, the Term A Notes, the Replacement Alternative Currency
Notes and any other Loan Document to which it is a party and (ii) each other
Loan Party of any Loan Document to which it is a party including, without
limitation, the Guaranty Confirmation and the Egerton Intercompany Note as
amended and restated as of the date hereof (the "Replacement Egerton
                                                 -------------------
Intercompany Note") and any and all security documents, charges, mortgages
-----------------
executed or to be executed by Egerton or any other Foreign Subsidiary
(collectively, the Third Amendment, the Term A Notes, the Replacement
Alternative Currency Notes, the Guaranty Confirmation, the Replacement Egerton
Intercompany Note and any other agreements, instruments and documents executed
or delivered by the Borrower or any other Loan Party in connection herewith are
hereinafter sometimes referred to as the "New Loan Documents"), are within each
                                          ------------------
such Loan Party's organizational powers and have been or will have been (prior
to execution and delivery) duly authorized by all necessary corporate action on
the part of each such Loan Party. This Third Amendment and each of the other New
Loan Documents are, or upon execution and delivery thereof shall thereupon be,
the legal, valid and binding obligations of the Borrower or other Loan Party, as
applicable, party

                                      -11-
<PAGE>

thereto enforceable against the Borrower or other Loan Party in accordance with
their terms.

              2.4  The execution, delivery and performance by the Borrower and
each other Loan Party of any New Loan Document and consummation by the Borrower
and each other Loan Party of the transactions contemplated hereby and thereby
does not and shall not (a) conflict with or result in any breach or violation of
any provision of the certificate of incorporation or by-laws of the Borrower or
any other Loan Party, (b) result in any breach or violation of, or constitute a
default (or an event which, with notice or lapse of time or both, would
constitute a default) under, or result in the termination of, or accelerate the
performance required by, or result in the creation of a Lien upon any of the
properties or assets of the Borrower or any other Loan Party under any of the
terms, conditions or provisions of any note, bond, mortgage, indenture, deed of
trust, license, lease agreement or other instrument or obligation to which the
Borrower or any other Loan Party is a party or to which any of its properties or
assets are subject, (c) require any consent, approval, authorization or permit
of, or filing with or notification to, any third party or any governmental,
judicial, administrative or regulatory authority of the United States or of any
state, local or foreign government or subdivision thereof (a "Governmental
                                                              ------------
Entity") or (d) violate any order, writ, injunction, decree, judgment, ruling,
------
law, statute, rule or regulation of any Governmental Entity.

              2.5  The Borrower hereby acknowledges, confirms, represents and
warrants that, and the Security Agreement and each other Loan Document to which
any Loan Party is a party is hereby amended to the extent necessary to provide
that:

              (a)  the term "Obligations" as used and defined in the Security
Agreement and each other Loan Document (or any other term used therein to
describe or refer to the Indebtedness, liabilities and obligations of the
Borrower to the Lenders and the Administrative Agent) includes, without
limitation, the Indebtedness, liabilities and obligations of the Borrower to the
Lenders and the Administrative Agent, whether now existing or hereafter arising,
and whether or not currently contemplated, under the Credit Agreement, as
amended by the Third Amendment to Credit Agreement and the Notes (as defined in
the Credit Agreement) including the Term A Notes, the Replacement Alternative
Currency Notes and all agreements, documents and instruments executed and
delivered pursuant thereto (collectively, the "New Obligations");

              (b)  the liens and security interests granted pursuant to the
Security Agreement and each other Loan Document, secure, without limitation, the
New Obligations;

              (c)  the terms "Obligations", "Guaranteed Obligations" and
"Guaranteed Liabilities" as used in the Guaranty (or any other term used therein
to describe or refer to the Indebtedness, liabilities and obligations of any
Guarantor to the Lenders and the Administrative Agent) include, without
limitation, the New Obligations, and the liens and security interests granted by
any Guarantor pursuant to any Collateral Document secure, without limitation,
the New Obligations;

                                      -12-
<PAGE>

              (d)  the terms "Alternative Currency Note(s)" and "Alternative
Currency Revolving Notes," as used in any Loan Document shall mean the
Replacement Alternative Currency Notes; and

              (e)  all of the representations and warranties set forth in the
Security Agreement and each other Collateral Document, as confirmed hereby, are
true and correct as of the date hereof.

Article III.  Conditions Precedent to the Effectiveness of this Third Amendment.
              ------------------------------------------------------------------

              The Amendments contemplated by Section 1 hereof are subject to the
                                             ---------
satisfaction of each of the following conditions precedent.  The date on which
all such conditions shall have been fulfilled to the satisfaction of the
Administrative Agent and the Required Lenders, and the date on which this Third
Amendment shall have become effective, shall be herein called the "Effective
Date".

              The Administrative Agent shall have received on or before the
Effective Date the following, each dated as of the Effective Date (unless
otherwise specified), in form and substance satisfactory to the Administrative
Agent and the Lenders, and in sufficient copies (except for the Notes), for each
Lender:

              3.1  Original, executed counterparts of this Third Amendment.

              3.2  The Term A Notes payable to the order of each Term A Lender.

              3.3  The Replacement Alternative Currency Notes payable to the
order of each of the Lenders, in the respective face principal amounts as set
forth on Schedule I hereto.

              3.4  The Replacement Egerton Intercompany Note in the face
principal amount of $18,000,000 and otherwise in form and substance satisfactory
to the Administrative Agent, endorsed over to the Agent, together with any
amendment to the Collateral Documents as the Administrative Agent may reasonably
request to evidence the pledge of such Note.

              3.5  A Letter of Confirmation from A.C. Egerton (Holdings) Limited
confirming that the Guarantee dated June 17, 1999 will remain in full force and
effect and will cover all monies extended to Channell Commercial Corporation
under the Credit Agreement dated as of May 1, 1998 as amended (the "Guaranty
                                                                    --------
Confirmation").
------------

              3.6  Certified copies of resolutions of the Board of Directors of
the Borrower, A.C. Egerton (Holdings) Limited and each other Loan Party
approving this Third Amendment, the Term A Notes, the Replacement Alternative
Currency Notes, the Guaranty Confirmation, the Replacement Egerton Intercompany
Note and each other Loan Document to which it is or is to be a party, and of all
documents evidencing other necessary corporate action and governmental and other
third party approvals and

                                      -13-
<PAGE>

consents, if any, with respect to this Third Amendment, the Term A Notes, the
Guaranty Confirmation and each other Loan Document.

              3.7  A copy of a certificate of the Secretary of State of the
jurisdiction of its incorporation, dated within thirty (30) Business Days prior
to the date hereof, listing the charter of the Borrower and each amendment
thereto on file in its office and certifying that (1) such amendments are the
only amendments to the Borrower's charter on file in its office, (2) the
Borrower has paid all franchise taxes to the date of such certificate and (3)
the Borrower is duly incorporated and in good standing under the laws of the
State of the jurisdiction of its incorporation.

              3.8  A copy of a certificate of the Secretary of State of each
State listed on Schedule 3.01(a)(x) to the Credit Agreement, dated reasonably
                -------------------
near the date hereof, stating that the Borrower is duly qualified and in good
standing as foreign corporations in such State and have filed all annual reports
required to be filed to the date of such certificate.

              3.9  A certificate of the Borrower and each other Loan Party
signed on behalf of the Borrower or such other Loan Party, as the case may be,
by a Responsible Officer and the Secretary or an Assistant Secretary of the
Borrower or such other Loan Party, as the case may be, dated the date hereof
(the statements made in such certificate shall be true on and as of the date
hereof), certifying as to (1) the absence of any amendments to the charter of
the Borrower or such other Loan Party since the date of the Secretary of State's
certificate referred to above, (except in the case of A.C. Egerton (Holdings)
Limited, which certificate shall attach a true and correct copy of its
Memorandum and Articles of Association as in effect on the date thereof) (2) the
absence of any amendments to the bylaws of the Borrower and each other Loan
Party since the last date of delivery thereof to the Administrative Agent, (3)
the due incorporation and good standing of the Borrower and each other Loan
Party as a corporation organized under the laws of the jurisdiction of its
incorporation, and the absence of any proceeding for the dissolution or
liquidation of the Borrower or any other Loan Party, (4) the truth of the
representations and warranties contained in the Loan Documents as though made on
and as of the date hereof, (5) the satisfaction of the conditions precedent
required of the Borrower and its Subsidiaries as set forth in this Article III,
and (6) the absence of any event occurring and continuing, or resulting from the
transactions contemplated by this Third Amendment, that constitutes a Default.

              3.10  A certificate of the Secretary or an Assistant Secretary of
the Borrower and each other Loan Party certifying the names and true signatures
of the officers of the Borrower and each other Loan Party authorized to sign
this Third Amendment, the Term A Notes, the Guaranty Confirmation and each other
Loan Document to which they are or are to be parties and the other documents to
be delivered hereunder and thereunder.

              3.11  Documents evidencing the satisfaction, termination and
release of any liens or charges over the assets of A.C. Egerton (Holdings)
Limited (f/k/a A.C. Egerton (Holdings) plc) in favor of Midland Bank plc.

                                      -14-
<PAGE>

              3.12  A satisfactory opinion of Irell & Manella, U.S. counsel to
the Borrower, to the extent requested by Administrative Agent, as to the
transactions contemplated hereby.

              3.13  A satisfactory opinion of Herbert Smith, U.S. counsel to the
Borrower, to the extent requested by Administrative Agent, as to the
transactions contemplated hereby.

              3.14  Original, executed counterparts of the Third Amendment to
Security Agreement, dated of even date herewith, in form and substance
satisfactory to Administrative Agent.

              3.15  There shall exist no Default or Event of Default under any
of the Loan Documents, and all legal matters incident to this Third Amendment
shall be satisfactory to counsel for the Administrative Agent.

              3.16  An amendment fee in an amount equal to .25% of the Term A
Commitment shall have been paid to the Administrative Agent, for the pro rata
account of each Lender that timely executes and delivers its signature page
evidencing its agreement to this Third Amendment.

              3.17  All accrued fees and expenses of the Administrative Agent
and the Lenders (including the reasonable fees and expenses of counsel for the
Administrative Agent) shall have been paid.

              3.18  The Administrative Agent shall have received, in form and
substance reasonably satisfactory to it, such other documents, agreements and
instruments as the Administrative Agent may reasonably request for a transaction
of the nature contemplated by this Third Amendment and all proceedings in
connection with the transactions contemplated by this Third Amendment, and all
documents incidental thereto shall be satisfactory to the Administrative Agent.

Article IV.   Conditions Subsequent.
              ----------------------

              4.1   A field examination, including, but not limited to the
Borrowers accounts receivable and inventory collateral, internal controls and
reporting systems shall be conducted within 60 days following the Effective
Date. Such field exam shall be performed by a firm of the Administrative Agent's
choice and all fees and expenses incurred in connection with the field exam
shall be paid by the Borrower. Any failure of such field exam to be permitted by
the Borrower to be performed in accordance with the terms hereof shall
constitute a Default under the Credit Agreement.

              4.2   Within 30 days following the Effective Date, a tax audit of
the Borrower and its Subsidiaries shall have been completed and the results
thereof shall have been delivered to the Administrative Agent. Such audit shall
be performed by a firm of the Borrower's choice and all fees and expenses
incurred in connection with the audit shall be paid by the Borrower.

                                      -15-
<PAGE>

              4.3   Within 60 days following the Effective Date, Egerton shall
have granted to the Administrative Agent, as collateral security for its
obligations under the Guarantee charges, liens and security interests on all of
its assets and properties, both personal and real property, all pursuant to
agreements, instruments and documents (including opinions of counsel) in form
and substance satisfactory to the Administrative Agent, with such exceptions as
the Lenders may (in their sole discretion) agree to, all subject to confirmation
of the absence of materially adverse tax consequences to the Borrower.

              4.4   Within 60 days following the Effective Date, the Borrower
shall have executed and delivered to the Administrative Agent such amendments to
the leasehold deeds of trust and the Security Agreement as the Administrative
Agent may require in order to reflect the terms of this Third Amendment.

              4.5   Not later than sixty (60) days after the Effective Date
unless otherwise agreed to by the Administrative Agent:

              (a)   the Borrower shall cause (i) each of its Subsidiaries to
deliver all documents referred to in Sections 3.01(a)(vii), (viii), (ix), (xi),
(xii) and 3.01(m) of the Credit Agreement in respect of all the Subsidiaries of
the Borrower (including the equivalent in respect of the Foreign Subsidiaries),
and (ii) each of its Domestic Subsidiaries to deliver all documents referred to
in Section 3.01(a)(vi) in respect of all the Domestic Subsidiaries of the
Borrower;

              (b)  each Domestic Subsidiary of the Borrower shall execute a
Security Agreement, substantially in the same form as the Security Agreement
heretofore executed by the Borrower, in which such Domestic Subsidiary will
grant to the Administrative Agent a lien on and security interest in
substantially all of its property and assets (excluding, however, if determined
by the Administrative Agent, real property owned or leased by such Domestic
Subsidiary and except to the extent expressly excluded in the Credit Agreement)
to the Administrative Agent, for the benefit of the Administrative Agent and the
ratable benefit of the Secured Parties, and shall otherwise comply with the
terms of Section 3.01(a)(iii), (iv), (v) and (vi) of the Credit Agreement not
complied with on the Effective Date in respect of the Domestic Subsidiaries;

              (c)  the Borrower shall provide, or cause each of its Subsidiaries
to provide, to Administrative Agent results of UCC, tax and judgment lien
searches, or the equivalent, for each of the Borrower's subsidiaries in each
jurisdiction in which such subsidiary is incorporated or qualified to do
business; and

              (d)  the Borrower shall execute, or cause its Subsidiaries to
execute, such pledge agreements or amendments to Security Agreements, as
applicable, in each case, in form and substance satisfactory to the
Administrative Agent, necessary to pledge to the Administrative Agent, for the
ratable benefit of the Lenders, 65% (or more if no material adverse tax
consequence to the Borrower would result from a greater percentage pledge) of
the Equity Interests of each direct and indirect Foreign Subsidiary of Borrower

                                      -16-
<PAGE>

and Egerton, and 100% of the Equity Interests of each direct and indirect
Domestic Subsidiary of Borrower not previously pledged.

Article V.    Waiver
              ------

              5.1  Waiver.  The Borrower was in violation of Section 6.18(b) of
                   ------
the Credit Agreement as of March 31, 2000 by virtue of the ratio of Total Debt
to EBITDA being 1.54:1.00 instead of 1.5:1.00. The Lenders and the
Administrative Agent hereby waive the Event of Default caused by such violation,
provided that such waiver shall be effective only with respect to the specific
default described in the preceding sentence and shall not be applicable to any
subsequent or other failure by the Borrower to comply with the terms of the
Credit Agreement.

Article VI.   Reference to and Effect Upon the Credit Agreement.
              --------------------------------------------------

              6.1  Effect.  The Credit Agreement, the Collateral Documents and
                   ------
all agreements, instruments and documents executed and delivered in connection
with any of the foregoing, shall each be deemed amended hereby to the extent
necessary, if any, to give effect to the provisions of this Third Amendment.

              6.2  No Waiver; References.  The execution, delivery and
                   ---------------------
effectiveness of this Third Amendment shall not operate as a waiver of any
right, power or remedy of the Administrative Agent or any Lender under the
Credit Agreement, nor constitute a waiver of any provision of the Credit
Agreement, except as specifically set forth herein. Upon the effectiveness of
this Third Amendment, each reference in:

                   (i)   the Credit Agreement to "this Agreement", "hereunder",
"hereof", "herein" or words of similar import shall mean and be a reference to
the Credit Agreement as amended hereby;

                   (ii)  the other Loan Documents to the "Credit Agreement"
shall mean and be a reference to the Credit Agreement as amended hereby;

                   (iii) the Loan Documents to the "Loan Documents" shall be
deemed to include this Third Amendment, the Term A Notes, the Guaranty
Confirmation and each of the other New Loan Documents;

                   (iv)  the Loan Documents to "Notes" shall be deemed to
include the Term A Notes and the Replacement Alternative Currency Notes; and

                   (v)   the Loan Documents or any other agreement, instrument
or document executed and delivered in connection therewith to the "Advances" (or
any other term or terms used in any of such documents to describe or refer to
Advances made by the Lenders to the Borrower under the Credit Agreement) shall
be deemed to additionally refer to Term A Advances made by the Lenders to the
Borrower pursuant to the Credit Agreement as amended hereby.

                                      -17-
<PAGE>

Article VII.  Miscellaneous.
              --------------

              7.1  Continuing Effectiveness of Credit Agreement.  Except as
                   --------------------------------------------
specifically amended hereby, the Credit Agreement and the other Loan Documents
shall remain in full force and effect in accordance with their terms and are
hereby ratified and confirmed.

              7.2  Headings.  Section headings in this Third Amendment are
                   --------
included herein for convenience of reference only and shall not constitute a
part of this Third Amendment for any other purposes.

              7.3  Law.  THIS THIRD AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE
                   ---
WITH AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK.

              7.4  Successors.  This Third Amendment shall be binding upon the
                   ----------
Borrower, the other Loan Parties, the Lenders and the Administrative Agent and
their respective successors and assigns, and shall inure to the benefit of the
Borrower, the other Loan Parties, the Lenders and the Administrative Agent and
the successors and assigns of the Lenders and the Administrative Agent.

              7.5  Modification.  No modification or waiver of or with respect
                   ------------
to any provisions of this Third Amendment and all other agreements, instruments
and documents delivered pursuant hereto or thereto, nor consent to any departure
by the Administrative Agent or the Lenders from any of the terms or conditions
thereof, shall in any event be effective unless it shall be in writing and
executed in accordance with the provisions of the Credit Agreement, and then
such waiver or consent shall be effective only in the specific instance and for
the specific purpose for which given. No consent to or demand on the Borrower in
any case shall, of itself, entitle it to any other or further notice or demand
in similar or other circumstances. This Third Amendment, together with the
Credit Agreement, as amended, embodies the entire agreement and understanding
among the Borrower, the Administrative Agent and the Lenders and supersedes all
prior agreements and understandings relating to the subject matter hereof.

              7.6  Severability.  The provisions of this Third Amendment are
                   ------------
severable, and if any clause or provision shall be held invalid or unenforceable
in whole or in part in any jurisdiction, then such invalidity or
unenforceability shall affect only such clause or provision, or part thereof, in
such jurisdiction and shall not in any manner affect such clause or provision in
any other jurisdiction, or any other clause or provision of this Third Amendment
in any jurisdiction.

              7.7  Execution in Counterparts.  This Third Amendment may be
                   -------------------------
executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed and delivered shall be
deemed to be an original and all of which taken together shall constitute one
and the same instrument.

                                      -18-
<PAGE>

              IN WITNESS WHEREOF, each of the parties hereto has caused this
Third Amendment to the Credit Agreement to be duly executed as of the date first
above written.

                         CHANNELL COMMERCIAL CORPORATION

                         By /s/ Tom Liguori
                            -------------------------------------
                         Name:  Tom Liguori
                         Title: Chief Financial Officer

                         FLEET NATIONAL BANK
                         as Administrative Agent, Issuing Bank and a Lender

                         By /s/ Pauline So
                            -------------------------------------
                         Name:  Pauline So
                         Title: Assistant Vice President

                         WELLS FARGO BANK, NATIONAL ASSOCIATION
                         as  a Lender

                         By /s/ Alva Diaz
                            -------------------------------------
                         Name:  Alva Diaz
                         Title: Vice President

                                      -19-
<PAGE>

                                                                   EXHIBIT A TO
                                                                   ------------
                                             THIRD AMENDMENT TO CREDIT AGREEMENT
                                             -----------------------------------

                                  SCHEDULE I

                  COMMITMENTS AND APPLICABLE LENDING OFFICES

<TABLE>
<CAPTION>
====================================================================================================================================
<S>                       <C>         <C>         <C>            <C>           <C>                <C>          <C>
                                                   Alternative                    Alternative
                                                    Currency       Letter of   Currency Letter     Domestic          Eurodollar
                           Term A     Revolving     Revolving       Credit        of Credit        Lending           Lending
Name of Initial Lender   Commitment   Commitment  Commitment/1/  Commitment/2/  Commitment*/3/     Office            Office
------------------------------------------------------------------------------------------------------------------------------------
Fleet National Bank      $5,000,000  $15,000,000   $9,000,000     $2,500,000     $1,000,000    One Federal Street One Federal Street
                                                                                               Boston, MA 02110   Boston, MA 02110
                                                                                               Fax: (617)434-6471 Fax: (617)434-6471
                                                                                               Ph: (617)434-3219  Ph: (617)434-3219
                                                                                               Attn: Pauline So   Attn: Pauline So
------------------------------------------------------------------------------------------------------------------------------------
Wells Fargo Bank,        $5,000,000  $15,000,000   $9,000,000     $2,500,000     $1,000,000    Wells Fargo Bank   Wells Fargo Bank
National Association                                                                           National Assoc.    National Assoc.
                                                                                               San Diego Regional San Diego Regional
                                                                                               Commercial         Commercial
                                                                                               Banking Office     Banking Office
                                                                                               410 B Street       401 B Street
                                                                                               Suite 2201         Suite 2201
                                                                                               San Diego, CA      San Diego, CA
                                                                                               92101              92101
                                                                                               Fax# (619)699-3020 Fax# (619)699-3020
                                                                                               Ph.# (619)699-3035 Ph.# (619)699-3035
                                                                                               Account Name:      Account Name:
                                                                                               Channel Commercial Channel Commercial
                                                                                               Corporation        Corporation
                                                                                               Attn: Alva Diaz    Attn: Alva Diaz
====================================================================================================================================
</TABLE>

     * Assigned Dollar Value
     ___________________________________

     /1/ Such Alternative Currency Revolving Commitment is a sublimit of the
         revolving Commitment

     /2/ Such Letter of Credit Commitment is a sublimit of the Revolving
         Commitment.

     /3/ Such Alternative Currency Letter of Credit Commitment is a sublimit of
         the Alternative Currency Revolving Commitment.

                                      -20-
<PAGE>

                            TERM A PROMISSORY NOTE

$5,000,000.00                                               Dated: July 20, 2000

          FOR VALUE RECEIVED, the undersigned, CHANNELL COMMERCIAL CORPORATION,
a Delaware corporation (the "Borrower"), HEREBY PROMISES TO PAY to the order of
                             --------
FLEET NATIONAL BANK (the "Lender") for the account of its Applicable Lending
                          ------
Office (as defined in the Credit Agreement referred to below) the principal
amount of the Term A Advances owing to the Lender by the Borrower pursuant to
the Credit Agreement, dated as of May 1, 1998 (as amended, supplemented,
restated or otherwise modified, the "Credit Agreement"; terms defined therein
                                     ----------------
being used herein as therein defined), among the Borrower, the Lender and
certain other Lender Parties party thereto and Fleet National Bank, as Initial
Issuing Bank and as Administrative Agent for the Lender and the other Lender
Parties, on the dates and in the amounts specified in the Credit Agreement.

          The Borrower promises to pay interest on the unpaid principal amount
of the Term A Advance from the date of such Term A Advance until such principal
amount is paid in full, at such interest rates, and payable at such times, as
are specified in the Credit Agreement.

          Both principal and interest are payable in lawful money of the United
States of America to Fleet National Bank, as Administrative Agent for the Lender
Parties, at One Federal Street, Boston, MA 02110, Account No. 151035203156,
Attention: Loan Administration, in same day funds.

          This Promissory Note is one of the Term A Notes referred to in, and is
entitled to the benefits of, the Credit Agreement.  The Credit Agreement, among
other things, (i) provides for the making of a Term A Advance by the Lender to
the Borrower in an amount not to exceed the U.S. dollar amount first above
mentioned, the indebtedness of the Borrower resulting from such Term A Advance
being evidenced by this Promissory Note, and (ii) contains provisions for
acceleration of the maturity hereof upon the happening of certain stated events
and also for prepayments on account of principal hereof prior to the maturity
hereof upon the terms and conditions therein specified.  The obligations of the
Borrower under this Promissory Note, and the obligations of the other Loan
Parties under the Loan Documents, are secured by the Collateral as provided in
the Loan Documents, that certain Leasehold Deed of Trust, Security Agreement,
Assignment of Leases and Rents and Fixture Filing pertaining to Parcel 6 and 11
of Parcel Map No. 21361, in the County of Riverside, State of California,
recorded on July 14, 1998 as document #289420 in the Office of the Recorder of
Riverside County, California and that certain Leasehold Deed of Trust, Security
Agreement, Assignment of Leases and Rents and Fixture Filing pertaining to
Parcel 7 of Parcel Map No. 21361, in the County of Riverside, State of
California, recorded on July 14, 1998 as document #289371 in the Office of the
Recorder of Riverside County, California.
<PAGE>

          This Promissory Note shall be governed by and construed in accordance
with the laws of the State of New York.

                              CHANNELL COMMERCIAL CORPORATION

                              By: /s/ Tom Liguori
                                  --------------------------------
                                  Name:  Tom Liguori
                                  Title: Chief Financial Officer

<PAGE>

                             TERM A PROMISSORY NOTE

$5,000,000.00                                               Dated: July 20, 2000

          FOR VALUE RECEIVED, the undersigned, CHANNELL COMMERCIAL CORPORATION,
a Delaware corporation (the "Borrower"), HEREBY PROMISES TO PAY to the order of
                             --------
WELLS FARGO BANK, NATIONAL ASSOCIATION (the "Lender") for the account of its
                                             ------
Applicable Lending Office (as defined in the Credit Agreement referred to below)
the principal amount of the Term A Advances owing to the Lender by the Borrower
pursuant to the Credit Agreement, dated as of May 1, 1998 (as amended,
supplemented, restated or otherwise modified, the "Credit Agreement"; terms
                                                   ----------------
defined therein being used herein as therein defined), among the Borrower, the
Lender and certain other Lender Parties party thereto and Fleet National Bank,
as Initial Issuing Bank and as Administrative Agent for the Lender and the other
Lender Parties, on the dates and in the amounts specified in the Credit
Agreement.

          The Borrower promises to pay interest on the unpaid principal amount
of the Term A Advance from the date of such Term A Advance until such principal
amount is paid in full, at such interest rates, and payable at such times, as
are specified in the Credit Agreement.

          Both principal and interest are payable in lawful money of the United
States of America to Fleet National Bank, as Administrative Agent for the Lender
Parties, at One Federal Street, Boston, MA 02110, Account No. 151035203156,
Attention: Loan Administration, in same day funds.

          This Promissory Note is one of the Term A Notes referred to in, and is
entitled to the benefits of, the Credit Agreement.  The Credit Agreement, among
other things, (i) provides for the making of a Term A Advance by the Lender to
the Borrower in an amount not to exceed the U.S. dollar amount first above
mentioned, the indebtedness of the Borrower resulting from such Term A Advance
being evidenced by this Promissory Note, and (ii) contains provisions for
acceleration of the maturity hereof upon the happening of certain stated events
and also for prepayments on account of principal hereof prior to the maturity
hereof upon the terms and conditions therein specified.  The obligations of the
Borrower under this Promissory Note, and the obligations of the other Loan
Parties under the Loan Documents, are secured by the Collateral as provided in
the Loan Documents, , that certain Leasehold Deed of Trust, Security Agreement,
Assignment of Leases and Rents and Fixture Filing pertaining to Parcel 6 and 11
of Parcel Map No. 21361, in the County of Riverside, State of California,
recorded on July 14, 1998 as document #289420 in the Office of the Recorder of
Riverside County, California and that certain Leasehold Deed of Trust, Security
Agreement, Assignment of Leases and Rents and Fixture Filing pertaining to
Parcel 7 of Parcel Map No. 21361, in the County of Riverside, State of
California, recorded on July 14, 1998 as document #289371 in the Office of the
Recorder of Riverside County, California.
<PAGE>

          This Promissory Note shall be governed by and construed in accordance
with the laws of the State of New York.

                              CHANNELL COMMERCIAL CORPORATION

                              By:  /s/ Tom Liguori
                                 ----------------------------------
                                 Name: Tom Liguori
                                      -----------------------------
                                 Title: Chief Financial Officer
                                       ----------------------------
<PAGE>

                REPLACEMENT ALTERNATIVE CURRENCY REVOLVING NOTE

$9,000,000.00                                               Dated: July 20, 2000
(Assigned Dollar Value)

          FOR VALUE RECEIVED, the undersigned, CHANNELL COMMERCIAL CORPORATION,
a Delaware corporation (the "Borrower"), HEREBY PROMISES TO PAY to the order of
                             --------
FLEET NATIONAL BANK (the "Lender") for the account of its Applicable Lending
                          ------
Office (as defined in the Credit Agreement referred to below) the lesser of Nine
Million Dollars ($9,000,000) or the aggregate principal amount of the
Alternative Currency Revolving Credit Advances (as defined below) owing to the
Lender by the Borrower pursuant to the Credit Agreement, dated as of May 1, 1998
(as amended, supplemented, restated or otherwise modified, the "Credit
                                                                ------
Agreement"; terms defined therein being used herein as therein defined), between
the Borrower, the banks, financial institutions and other institutional lenders
named therein as Lenders, Fleet National Bank as Issuing Bank and Fleet National
Bank, as Administrative Agent and Lender, on the Revolving Credit Termination
Date.

          The Borrower promises to pay interest on the unpaid principal amount
of each Alternative Currency Revolving Advance from the date of such Alternative
Currency Revolving Advance until such principal amount is paid in full, at such
interest rates, and payable at such times, as are specified in the Credit
Agreement.

          The Borrower acknowledges and agrees that each Alternative Currency
Revolving Advance shall be repaid or prepaid, as the case may be, by the
Borrower in the Alternative Currency in which such Alternative Currency
Revolving Advance was made, regardless of whether the Dollar Equivalent thereof
at the time of payment is less than, equal to or greater than the Alternative
Currency Revolving Sub-Commitment of the Lender.  Both principal and interest
are payable in the Alternative Currency in which each respective Alternative
Currency Revolving Advance evidenced hereby was made, to Fleet National Bank, as
Administrative Agent for the Lender Parties, at One Federal Street, Boston, MA
02110, Account No.151035103156, Attention: Loan Administration, in same day
funds customary for the settlement of international transactions in such
Alternative Currency.  Each Alternative Currency Revolving Credit Advance owing
to the Lender by the Borrower and the maturity thereof, and all payments made on
account of principal thereof, shall be recorded by the Lender and, prior to any
transfer hereof, endorsed on the grid attached hereto or any continuation
thereof, which is part of this Note; provided, however, that the failure of such
                                     --------
Lender to so record any such information or any error in so recording any such
information shall not limit or otherwise affect the obligations of the Borrower
hereunder and under the other Loan Documents.

----------------------
/1/ Such Alternative Currency Revolving Commitment is a sublimit of the Lender's
Revolving Commitment.
<PAGE>

          This promissory note is one of the Notes referred to in, and is
entitled to the benefits of, the Credit Agreement.  The Credit Agreement, among
other things, (i) provides for the making of revolving advances denominated in
an Alternative Currency (the "Alternative Currency Revolving Advances") by the
                              ---------------------------------------
Lender to the Borrower from time to time in an aggregate amount not to exceed at
any time outstanding the Assigned Dollar Value of the U.S. Dollar amount first
above mentioned, the indebtedness of the Borrower resulting from each such
Alternative Currency Revolving Advance being evidenced by this Note, and (ii)
contains provisions for acceleration of the maturity hereof upon the happening
of certain stated events and also for prepayments on account of principal hereof
prior to the maturity hereof upon the terms and conditions therein specified.
The obligations of the Borrower under this Note, and the obligations of the
other Loan Parties under the Loan Documents, are secured by the Collateral
referred to in the Collateral Documents, that certain Leasehold Deed of Trust,
Security Agreement, Assignment of Leases and Rents and Fixture Filing pertaining
to Parcel 6 and 11 of Parcel Map No. 21361, in the County of Riverside, State of
California, recorded on July 14, 1998 as document #289420 in the Office of the
Recorder of Riverside County, California and that certain Leasehold Deed of
Trust, Security Agreement, Assignment of Leases and Rents and Fixture Filing
pertaining to Parcel 7 of Parcel Map No. 21361, in the County of Riverside,
State of California, recorded on July 14, 1998 as document #289371 in the Office
of the Recorder of Riverside County, California.

          This Note shall be deemed to be in substitution for and replacement
of, and not a repayment of, the Alternative Currency Revolving Note dated
December 29, 1999 made by the Borrower to the Lender (the "Prior Note");
                                                           -----------
provided that all interest accrued and unpaid under the Prior Note shall be
--------
deemed evidenced by this Note and payable hereunder from and after the accrual
date thereof.  The execution and delivery of this Note shall not be construed
(i) to have constituted repayment of any amount of principal or interest on the
Prior Note, or (ii) to release, cancel, terminate or otherwise impair all or any
part of any lien or security interest granted to the Administrative Agent as
collateral security for the Prior Note.

          This Note shall be governed by and construed in accordance with the
laws of the State of New York.

                              CHANNELL COMMERCIAL CORPORATION

                              By: /s/ Tom Liguori
                                  ----------------------------------
                                  Name:  Tom Liguori
                                  Title: Chief Financial Officer

<PAGE>

                    ALTERNATIVE CURRENCY REVOLVING ADVANCES
                           AND PAYMENTS OF PRINCIPAL

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------
                          Amount of
                          Alternative            Amount of
                       Currency Revolving    Principal Paid or      Unpaid Principal      Notation Made
         Date               Advance*              Prepaid*              Balance*                by
--------------------------------------------------------------------------------------------------------------
<S>                   <C>                   <C>                   <C>                   <C>

--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
 ------------------------------------------------------------------------------------------------------------
</TABLE>

*Specify Alternative Currency.
<PAGE>

                REPLACEMENT ALTERNATIVE CURRENCY REVOLVING NOTE

$9,000,000.00/1/                                            Dated: July 20, 2000

(Assigned Dollar Value)

          FOR VALUE RECEIVED, the undersigned, CHANNELL COMMERCIAL CORPORATION,
a Delaware corporation (the "Borrower"), HEREBY PROMISES TO PAY to the order of
                             --------
WELLS FARGO BANK, NATIONAL ASSOCIATION (the "Lender") for the account of its
                                             ------
Applicable Lending Office (as defined in the Credit Agreement referred to below)
the lesser of Nine Million Dollars ($9,000,000) or the aggregate principal
amount of the Alternative Currency Revolving Credit Advances (as defined below)
owing to the Lender by the Borrower pursuant to the Credit Agreement, dated as
of May 1, 1998 (as amended, supplemented, restated or otherwise modified, the

"Credit Agreement"; terms defined therein being used herein as therein defined),
-----------------
between the Borrower, the banks, financial institutions and other institutional
lenders named therein as Lenders, Fleet National Bank as Issuing Bank and Fleet
National Bank, as Administrative Agent and Lender, on the Revolving Credit
Termination Date.

          The Borrower promises to pay interest on the unpaid principal amount
of each Alternative Currency Revolving Advance from the date of such Alternative
Currency Revolving Advance until such principal amount is paid in full, at such
interest rates, and payable at such times, as are specified in the Credit
Agreement.

          The Borrower acknowledges and agrees that each Alternative Currency
Revolving Advance shall be repaid or prepaid, as the case may be, by the
Borrower in the Alternative Currency in which such Alternative Currency
Revolving Advance was made, regardless of whether the Dollar Equivalent thereof
at the time of payment is less than, equal to or greater than the Alternative
Currency Revolving Sub-Commitment of the Lender.  Both principal and interest
are payable in the Alternative Currency in which each respective Alternative
Currency Revolving Advance evidenced hereby was made, to Fleet National Bank, as
Administrative Agent for the Lender Parties, at One Federal Street, Boston, MA
02110, Account No.151035103156, Attention: Loan Administration, in same day
funds customary for the settlement of international transactions in such
Alternative Currency.  Each Alternative Currency Revolving Credit Advance owing
to the Lender by the Borrower and the maturity thereof, and all payments made on
account of principal thereof, shall be recorded by the Lender and, prior to any
transfer hereof, endorsed on the grid attached hereto or any continuation
thereof, which is part of this Note; provided, however, that the failure of such
                                     --------
Lender to so record any such information or any error in so recording any such
information

------------------
/1/ Such Alternative Currency Revolving Commitment is a sublimit of the Lender's
Revolving Commitment.
<PAGE>

shall not limit or otherwise affect the obligations of the Borrower hereunder
and under the other Loan Documents.

          This promissory note is one of the Notes referred to in, and is
entitled to the benefits of, the Credit Agreement.  The Credit Agreement, among
other things, (i) provides for the making of revolving advances denominated in
an Alternative Currency (the "Alternative Currency Revolving Advances") by the
                              ---------------------------------------
Lender to the Borrower from time to time in an aggregate amount not to exceed at
any time outstanding the Assigned Dollar Value of the U.S. Dollar amount first
above mentioned, the indebtedness of the Borrower resulting from each such
Alternative Currency Revolving Advance being evidenced by this Note, and (ii)
contains provisions for acceleration of the maturity hereof upon the happening
of certain stated events and also for prepayments on account of principal hereof
prior to the maturity hereof upon the terms and conditions therein specified.
The obligations of the Borrower under this Note, and the obligations of the
other Loan Parties under the Loan Documents, are secured by the Collateral
referred to in the Collateral Documents, that certain Leasehold Deed of Trust,
Security Agreement, Assignment of Leases and Rents and Fixture Filing pertaining
to Parcel 6 and 11 of Parcel Map No. 21361, in the County of Riverside, State of
California, recorded on July 14, 1998 as document #289420 in the Office of the
Recorder of Riverside County, California and that certain Leasehold Deed of
Trust, Security Agreement, Assignment of Leases and Rents and Fixture Filing
pertaining to Parcel 7 of Parcel Map No. 21361, in the County of Riverside,
State of California, recorded on July 14, 1998 as document #289371 in the Office
of the Recorder of Riverside County, California.

          This Note shall be deemed to be in substitution for and replacement
of, and not a repayment of, the Alternative Currency Revolving Note dated
December 29, 1999 made by the Borrower to the Lender (the "Prior Note");
                                                           -----------
provided that all interest accrued and unpaid under the Prior Note shall be
--------
deemed evidenced by this Note and payable hereunder from and after the accrual
date thereof.  The execution and delivery of this Note shall not be construed
(i) to have constituted repayment of any amount of principal or interest on the
Prior Note, or (ii) to release, cancel, terminate or otherwise impair all or any
part of any lien or security interest granted to the Administrative Agent as
collateral security for the Prior Note.

          This Note shall be governed by and construed in accordance with the
laws of the State of New York.

                              CHANNELL COMMERCIAL CORPORATION

                                             /s/
                              By:__________________________________
                                 Name:  Tom Liguori
                                 Title: CFO
<PAGE>

                    ALTERNATIVE CURRENCY REVOLVING ADVANCES
                           AND PAYMENTS OF PRINCIPAL

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------
                           Amount of
                          Alternative              Amount of
                       Currency Revolving      Principal Paid or         Unpaid Principal      Notation Made
        Date                Advance*               Prepaid*                     Balance*             by
---------------------------------------------------------------------------------------------------------------
<S>                   <C>                   <C>                   <C>                   <C>
---------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------
</TABLE>

*Specify Alternative Currency.
<PAGE>

                               INTERCOMPANY NOTE
                               -----------------

$18,000,000                                            Dated as of July 20, 2000

     FOR VALUE RECEIVED, the undersigned, A.C. EGERTON (HOLDINGS) LIMITED, a
company incorporated under the laws of England and Wales (the "Sub Borrower"),
hereby promises to pay to the order of CHANNELL COMMERCIAL CORPORATION, a
Delaware corporation ("Channell") the principal sum of Eighteen Million
($18,000,000) U.S. Dollars or such lesser amount as shall equal the aggregate
unpaid principal amount of the loans made by Channell to Sub Borrower, on demand
when and as demanded by Channell (subject to the terms of the fifth paragraph of
this Intercompany Note); and if not sooner demanded, to pay interest on the
unpaid principal amount of such loans, in like money and funds from the date of
such loan until such principal amount is paid in full, at the applicable rate
per annum for Alternative Currency Borrowings as set forth in the Credit
Agreement referred to below and computed and otherwise on the same interest rate
terms as if Sub Borrower were the "Company" under the Credit Agreement dated as
of May 1, 1998 (as amended, modified, supplemented or restated from time to time
hereafter, the "Credit Agreement") among Channell, the bank, financial
institutions and other institutional lenders named therein as Lenders, Fleet
National Bank, as Issuing Bank, and Fleet National Bank, as Administrative Agent
(the "Agent") and Lender and as if Channell were a "Lender" thereunder.

     All indebtedness outstanding under this Intercompany Note shall bear
interest (computed in the same manner as interest on this Intercompany Note
prior to maturity) after demand for payment hereof, at the post-default rate as
set forth in the Credit Agreement, and all such interest shall be payable from
time to time on demand.

     Anything herein to the contrary notwithstanding, the obligation of Sub
Borrower to make payments of interest shall be subject to the limitation that
payments of interest shall not be required to be made to Channell to the extent
that Channell's receipt thereof would not be permissible under the law or laws
applicable to Channell limiting rates of interest which may be charged or
collected by Channell.  Any such payments of interest which are not made as a
result of the limitation referred to in the preceding sentence shall be made by
Sub Borrower to Channell on the earliest interest payment date or dates on which
the receipt thereof would be permissible under the laws applicable to Channell
limiting rates of interest which may be charged or collected by Channell.  Any
payment actually received by Channell (and not returned to Sub Borrower) which,
if considered interest the receipt of which would not be permissible under the
law or laws applicable to Channell limiting rates of interest which may be
charged or collected by Channell, shall be treated as a principal payment
hereunder (provided, however, that such application shall not discharge Sub
Borrower's obligation set forth herein to make interest payments on the earliest
permissible interest payment date) and if all principal payments shall have been
made, refunded to Subsidiary.

     Unless and until Sub Borrower receives written notice to the contrary from
the Agent requiring payment to the Agent, payment of both principal and interest
on this Intercompany Note are to be made to Channell at the office of Channell
at its principal office at 26040 Ynez
<PAGE>

Road, Temecula, California 92589, or such other place as the holder hereof shall
designate to Sub Borrower in writing, in the applicable Alternative Currency in
immediately available funds.

     The proceeds of the loans evidenced hereby shall be used for working
capital and general corporate purposes.  Channell has granted to the Agent, for
the ratable benefit of the Lenders, a security interest in this Intercompany
Note pursuant to the Security Agreement dated as of May 1, 1998 by Channell in
favor of the Agent (as amended, modified, supplemented or restated from time to
time, the "Security Agreement") and Sub Borrower acknowledges the terms and
conditions of the Security Agreement and shall not agree to any amendment or
waiver of any of the terms hereof without the express written consent of the
Agent.  Payments received by the Agent as assignee of this Intercompany Note may
be applied to repayment of the Obligations (as defined in the Credit Agreement),
whether or not a Default or Event of Default (as defined in the Credit
Agreement) exists under the Credit Agreement.  Until the Obligations have been
paid in full, the Agent rather than Channell shall have the exclusive right to
exercise any and all rights and remedies and to make any and all demands
hereunder in respect hereof.  Without limiting the nature of this obligation as
a demand obligation, this Intercompany Note is subject to mandatory prepayment
upon the terms and conditions of the Credit Agreement as and when required in
order to enable Channell to satisfy its obligations under the Credit Agreement;
provided, that, except for demand made to satisfy any such mandatory prepayment
--------  ----
obligation (and notwithstanding anything contained herein to the contrary),
demand shall not be made hereunder prior to the date of occurrence and
continuance of an Event of Default under the Credit Agreement.

          This Note shall be deemed to be in substitution for and replacement
of, and not a repayment of, the Intercompany Note dated February 1, 2000 made by
the Borrower to the Lender (the "Prior Note"); provided that all interest
                                 -----------   --------
accrued and unpaid under the Prior Note shall be deemed evidenced by this
Intercompany Note and payable hereunder from and after the accrual date thereof.
The execution and delivery of this Intercompany Note shall not be construed (i)
to have constituted repayment of any amount of principal or interest on the
Prior Note, or (ii) to release, cancel, terminate or otherwise impair all or any
part of any lien or security interest granted to the Administrative Agent as
collateral security for the Prior Note.

     Prior to but excluding the Termination Date (as defined in the Credit
Agreement), subject to the terms and conditions of this Intercompany Note and
the Credit Agreement, Channell, in its sole discretion, may elect to make such
loans to Sub Borrower as Sub Borrower shall request from time to time up to an
aggregate principal amount not to exceed at any time outstanding the amount
permitted to be loaned by Channell to Sub Borrower in accordance with the terms
of the Credit Agreement.  The loans made by Channell to Sub Borrower hereunder
may be repaid and, subject to the terms hereof, reborrowed.

     So long as the Sub Borrower is indebted to Channell and until payment in
full of this Intercompany Note and full and complete performance of all of its
other obligations arising hereunder, the Sub Borrower will not, at any time,
without the prior consent of the Required Lenders:

     Use any proceeds of this Note to make an Investment in any Person or
Subsidiary;

                                      -2-
<PAGE>

     Create, incur, assume or suffer to exist, or permit any of its Subsidiaries
to create, incur, assume or suffer to exist, any Lien on or with respect to any
of its properties of any character, whether now owned or hereafter acquired, or
sign or file or suffer to exist, or permit any of its Subsidiaries to sign or
file or suffer to exist, under the Uniform Commercial Code or any other statute
of any domestic or foreign jurisdiction, a financing statement or comparable
instruments that names the Sub Borrower or any of its Subsidiaries as debtor, or
sign or suffer to exist, or permit any of its Subsidiaries to sign or suffer to
exist, any security agreement or comparable instruments authorizing any secured
party thereunder to file any such financing statement, or assign, or permit any
of its Subsidiaries to assign, any accounts or other right to receive income,
excluding, however, from the operation of the foregoing restrictions the
---------  -------
following:

          (a) Liens created under the Loan Documents;

          (b)  Permitted Liens;

          (c)  Purchase money Liens upon real property or equipment acquired or
held by the Sub Borrower or any of its Subsidiaries in the ordinary course of
business to secure the purchase price of such real property or equipment or to
secure Debt incurred solely for the purpose of financing the acquisition,
construction or improvement of any such real property or equipment to be subject
to such Liens, or Liens existing on any such real property or equipment at the
time of acquisition (other than any such Liens created in contemplation of such
acquisition that do not secure the purchase price), or extensions, renewals or
replacements of any of the foregoing for the same or a lesser amount; provided,
                                                                      --------
however, that no such Lien shall extend to or cover any property other than the
-------
real property or equipment being acquired, constructed or improved, and no such
extension, renewal or replacement shall extend to or cover any property not
theretofore subject to the Lien being extended, renewed or replaced; and,
provided, further, that the aggregate principal amount of the Debt secured by
--------  -------
Liens permitted by this clause (c) shall not exceed $50,000 in respect of all
other such Debt at any time outstanding; and, provided, further, that any such
                                              --------  -------
Debt shall not otherwise be prohibited by the terms of the Loan Documents
provided, however, that no Liens (purchase money or otherwise) may exist on any
real property financed directly or indirectly with the proceeds of the
indebtedness evidenced by this Intercompany Note, except for Liens in favor of
Channell (on terms acceptable to the Agent) or the Agent (and notwithstanding
the terms of Section 7.01(d) of the Credit Agreement (if any) to the contrary);

          (d) Liens arising in connection with Capitalized Leases permitted
under Section 7.02 of the Credit Agreement; provided, that no such Lien shall
                                            --------
extend to or cover any Collateral or any assets other than the assets subject to
such Capitalized Leases;

          (e) the replacement, extension or renewal of any Lien permitted by
clause (c) above upon or in the same property theretofore subject thereto in
connection with the replacement, extension or renewal (without increase in the
amount or any change in any direct or contingent obligor) of the Debt secured
thereby; or

     Create, incur, assume or suffer to exist, or permit any of its Subsidiaries
to create, incur, assume or suffer to exist, any Debt other than:

                                      -3-
<PAGE>

          (a) Debt incurred pursuant to an Intercompany Note payable to
Channell;

          (b) Debt secured by Liens permitted by Section 7.01(d) of the Credit
Agreement not to exceed in the aggregate $50,000 at any time outstanding in
respect of the Sub Borrower and all of its Subsidiaries;

          (c) Capitalized Leases not to exceed in the aggregate $1,000,000 at
any time outstanding in respect of the Sub Borrower and all of its Subsidiaries;

          (d) Unsecured Debt incurred in the ordinary course of business for the
deferred purchase price of property or services, maturing within one year from
the date created, and aggregating, on a Consolidated basis, not more than
$50,000 at any one time outstanding.

     At any time that the aggregate amount of the outstanding loans made
hereunder exceeds the amount permitted to be loaned by Channell to Sub Borrower
in accordance with the terms of the Credit Agreement, Sub Borrower shall
immediately prepay the loans made hereunder in the amount necessary to eliminate
such excess.

     The holder of this Intercompany Note is hereby authorized by Sub Borrower
to record on the schedule to this Intercompany Note (or on a supplemental
schedule thereto) the amount of each loan made by Channell hereunder and the
amount of each payment or prepayment of principal and interest, it being
understood, however, that failure to make any such notation shall not affect the
rights of Channell or the obligations of Sub Borrower hereunder or under,
arising out of or in connection with this Intercompany Note.  The Agent or
Channell may, at its option, record such matters in its internal records rather
than on such schedule.  This Intercompany Note shall be the sole instrument
evidencing any borrowings by Sub Borrower from Channell.

     Sub Borrower agrees to pay all costs of collection and reasonable
attorneys' fees in case default occurs in the payment of this Intercompany Note.

     Capitalized terms used herein and not otherwise defined shall have the
meanings ascribed to such terms in the Credit Agreement.

     The undersigned irrevocably consents that any legal action or proceeding
against it under, arising out of or in any manner relating to this Intercompany
Note or any related agreement or instrument may be brought in any court of the
State of New York or in the United States District Court for the Southern
District of New York, New York.  The undersigned expressly and irrevocably
assents and submits to the personal jurisdiction of any such courts in any such
action or proceeding. Any document or communication to be made under this
Intercompany Note shall be made in accordance with the Credit Agreement and if
the same is to be made to Channell or, as the case may be, the Agent, it shall
be made to the relevant address and/or fax number of Channell or, as the case
may be, the Agent as provided in the Credit Agreement;  if such document or
communication is to be made to Sub Borrower, it shall be made to the following
address and fax number Orpington, Kent, UK - 011-44-1689-833-428. The
undersigned hereby expressly and irrevocably waives any claim or defense in any
such action or proceeding based on any alleged lack of personal jurisdiction,
improper venue or forum non conveniens or any similar basis.  The undersigned
                  ----- --- ----------
hereby expressly and irrevocably waives any right in any such action or
proceeding to assert any defense given or allowed under the laws of any State
other than the

                                      -4-
<PAGE>

State of New York unless such defense is also given or allowed by the laws of
the State of New York.

     THIS INTERCOMPANY NOTE SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO ITS RULES
PERTAINING TO CONFLICTS OF LAWS.

     THE UNDERSIGNED WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR
PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS (I) UNDER THIS INTERCOMPANY NOTE OR
ANY OF THE OTHER CREDIT DOCUMENTS OR UNDER ANY AMENDMENT, INSTRUMENT, DOCUMENT
OR AGREEMENT DELIVERED IN CONNECTION HEREWITH OR THEREWITH OR (II) ARISING FROM
ANY BANKING RELATIONSHIP EXISTING IN CONNECTION WITH THIS INTERCOMPANY NOTE OR
ANY OF THE OTHER CREDIT DOCUMENTS OR UNDER ANY AMENDMENT, INSTRUMENT, DOCUMENT
OR AGREEMENT DELIVERED IN CONNECTION HEREWITH OR THEREWITH, AND AGREES THAT ANY
SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.

                                        A.C. EGERTON (HOLDINGS) LIMITED

                                        By /s/ Gary W. Baker
                                           --------------------------------
                                           Name:  Gary W. Baker
                                           Title: Director

ACKNOWLEDGED:

CHANNELL COMMERCIAL CORPORATION

By /s/ Tom Liguori
   ------------------------------
   Name:  Tom Liguori
   Title: Chief Financial Officer

                                      -5-
<PAGE>

                                  ENDORSEMENT
                                  -----------

PAY TO THE ORDER OF FLEET BANK, N.A., AS AGENT.

                                        CHANNELL COMMERCIAL CORPORATION

                                        By /s/ Gary W. Baker
                                           -------------------------------
                                           Name:  Gary W. Baker
                                           Title: Vice President, Finance

Dated:___________________

ACKNOWLEDGED.

                                        FLEET BANK, N.A.

                                        By /s/ Pauline So
                                           -------------------------------
                                           Name:  Pauline So
                                           Title: Assistant Vice President

Dated:___________________

<PAGE>

                                  SCHEDULE TO
                               INTERCOMPANY NOTE
                               -----------------

     This Schedule may be used to evidence loans and advances made pursuant to
the Intercompany Note to which this Schedule is attached subject to the payments
or prepayments of principal and interest and the outstanding balance, as set
forth below:

                   Principal    Principal
                   Amount of   Amount Paid    Date      Outstanding
Date Made           Advance    or Prepaid    Prepaid      Balance
---------          ---------   -----------   -------    -----------<PAGE>

                                                                   EXHIBIT 10.15

                            GEORGIAN GROUP MULTIPLE
                            INDUSTRIAL LEASE - NET

               THIS INDENTURE made the 26th day of October, 2000

               IN PURSUANCE OF THE SHORT FORMS OF LEASES ACT

BETWEEN:

                              BELSTON DEVELOPMENTS INC.
                                    (herein called the "Landlord")
                                                      OF THE FIRST PART;

                                    - and -

                              CHANNEL COMMERCIAL CANADA INC.
                                    (herein called the "Tenant")
                                                      OF THE SECOND PART;

1. DEMISE

1.01.1 In consideration of the rents, covenants and agreements hereinafter
reserved and contained on the part of the Tenant to be paid, observed and
performed, the Landlord hereby leases to the Tenant, and the Tenant hereby rents
from the Landlord, that designated portion, containing approximately 7,350
square feet ("Rentable Area of the Leased Premises") which, for the purposes of
calculating rent and other additional charges hereunder, includes the Tenant's
proportionate share of the Common Areas and Facilities attributable to the
premises, in a building ("Building") erected upon the lands, the "Lands"
situate, lying and being in the City of Mississauga, in the Province of
Ontario, municipally known as 6185 Tomken Road, as more particularly described
in Schedule "B" attached hereto, including in the demise of the premises
aforesaid the loading and unloading docks, windows and exterior walls and to the
centre of the interior walls thereof (the "Leased Premises"), the Rentable Area
of the Leased Premises being shown as outlined and identified as Units
[ILLEGIBLE] on the sketch attached hereto and marked as Schedule "A".

1.01.2 The Landlord shall deliver to the Tenant if requested by the Tenant, at
the Tenant's expense a certificate prepared by the Landlord's architect or
engineer, as the case may be, setting out the Rentable Area of the Leased
Premises as measured to the outside face of all exterior walls and to the centre
line of all dividing walls and adjusted to include the Tenant's proportionate
share of all mechanical, electrical, service rooms and other similar Common
Areas and Facilities. The decision of the Landlord's architect or surveyor, as
the case may be, shall be final and binding upon the parties hereto.

1.02 The Tenant shall have the non-exclusive rights, at all times, in common
with others entitled thereto (subject to Paragraph 31 hereof) to the use of the
common driveways, parking areas, entrances and exits, roadways, pedestrian
walkways, common loading and unloading docks, service areas and all other common
areas and facilities of the Building (the "common Areas and Facilities")
provided from time to time by the Landlord. It is understood and agreed that the
mechanical, electrical, service rooms and other facilities shall be deemed to
form part of the Common Areas and Facilities. However, the Tenant shall not have
access to such facilities without the Landlord's prior written consent, such
consent not to be unreasonably denied or delayed. The Landlord shall have the
right to make all such changes, improvements or alterations as Landlord may, in
its sole discretion, acting reasonably from time to time decide in respect of
the Building and the Common Areas and Facilities, including, without limitation,
the right to change the location and layout of the parking areas in accordance
with the provisions of Paragraph 31 hereof. The use of all Common Areas and
Facilities shall be subject to the provisions of this lease (the "Lease") and to
the rules and regulations made by Landlord with respect thereto from time to
time.

2. TERM

2.01 TO HAVE AND TO HOLD the Leased Premises, unless sooner terminated as
hereafter provided, for and during the term (the "Term") of Three (3) years and
Seventeen (17) days, to be computed from and inclusive of the 15th day of
December, 2000, (the "Commencement Date") and thenceforth next ensuing and to be
fully complete and ended on the 31st day of December, 2003.
<PAGE>

                                       2

2.02 Provided, and it is hereby agreed, that if due to the failure of the
Landlord for any reason to substantially complete the Landlord's work set out in
Schedule "C" attached or to make available the services which the Landlord is
hereby obligated to furnish (other then the delays directly attributed to the
Tenant), the Leased Premises or any part thereof are not ready for occupancy by
the Tenant on the Commencement Date as set out in Paragraph 2.01 hereof, no part
of the rent or only a proportionate part thereof in the event that the Tenant
shall occupy a portion of the Leased Premises, shall be payable for the period
prior to the date when the Leased Premises are ready for occupancy and the full
rent shall accrue only after such aforementioned date. The Tenant hereby agrees
to accept such abatement of rent in full settlement of any and all claims which
the Tenant may otherwise have by reason of the Leased Premises not being ready
for occupancy on the Commencement Date, and in such event, the commencement and
expiration dates of the Term as set out in Paragraph 2.01 hereof shall be
extended accordingly. Provided further, that when the Landlord has substantially
completed the Leased Premises in accordance with the provisions of this Lease
and the Construction Lien Act, R.S.O. 1980 and amendments thereto, delivered
possession of the Leased Premises to the Tenant and made available the required
services, the Tenant shall not be entitled to any abatement of rent for any
delay in occupancy due to the Tenant's failure to complete all installations or
other work required to be completed by the Tenant in accordance with the
provisions of this Lease or for the purpose of carrying on its business
operations in the Leased Premises. The decision of the Landlord's architect or
engineer shall be final and binding upon both parties hereto as to whether or
not the Leased Premises are ready for occupancy by the Tenant and, if necessary,
as to the portion of the Leased Premises that are available for occupancy.

2.03 The Tenant shall, upon request of the Landlord execute an acknowledgement
of the actual Commencement Date of the Term no later than the date on which the
Tenant commences business in or from the Leased Premises. The Tenant shall not
have any right to occupy any part of the Leased Premises prior to the
Commencement Date of the Term, as aforesaid, unless the Tenant first obtains the
prior consent of the Landlord. Notwithstanding anything hereinbefore contained,
if the Tenant shall occupy the Leased Premises or any part thereof prior to the
Commencement Date of the Term, the Tenant shall pay Minimum Rent and all
additional rent payable by the Tenant to the Landlord pursuant to this Lease
including, without limiting the generality of the foregoing, all taxes
applicable to the Leased Premises, all costs of insurance applicable to the
Leased Premises as required by this Lease and the costs of any hydro, gas and
water charges and also those costs as required pursuant to Paragraph 1.1 of this
Lease.

3. USE OF PREMISES

3.01 The Tenant shall continuously, actively and diligently use and occupy the
Leased Premises only for the purposes of general business offices associated
with TV Cable Housing, warehousing of related supplies and no other purpose
whatsoever. Provided the Tenant, in the use and occupation of the Leased
Premises and in the prosecution or conduct of the foregoing business therein,
shall comply with the requirements of all laws, ordinances, rules and
regulations of the federal, provincial and municipal authorities and with any
direction or certificate of occupancy issued pursuant to any laws by any public
offices or officers. The Tenant shall not use or permit to be used any part of
the Leased Premises for any dangerous, noxious, or offensive trade or business
and will not cause or maintain any nuisance in, at, or on the Leased Premises.
The costs of any changes or alterations to the Leased Premises which are
required by any public authority as a result of the use to which the Leased
Premises are used or are to be used, shall be paid for by the Tenant.

4. RENT

4.01 The Tenant shall pay from and after the Commencement Date and throughout
the Term, to the Landlord, in lawful money of Canada, without any prior demand
therefore, and without any deduction, abatement, set-off or compensation
whatsoever, an annual minimum rent (the "Minimum Rent") as follows:

4.01.1 For the period of the Term commencing from the 15th day of December, 2000
and terminating on 31st of December, 2001, the Tenant shall pay to the Landlord
as annual Minimum Rent the sum of Fifty One Thousand Four Hundred Fifty Dollars
and Zero Cents ($51,450.00) per annum payable monthly, an advance, in equal
consecutive monthly instalments of Four Thousand Two Hundred Eighty Seven
Dollars and Fifty Cents ($4,287.50) per month on the first day of each calendar
month. The annual Minimum Rent payable pursuant hereto is based on a rent factor
of Seven Dollars and Zero Cents ($7.00) per square foot per annum of Rentable
Area of the Leased Premises.

4.01.2 For the period of the Term commencing from the 1st day of January, 2002
and terminating on the 31st day of December, 2002 the Tenant shall pay to the
Landlord as annual
<PAGE>

                                       3

Minimum Rent the sum of Fifty Three Thousand Two Hundred Eighty Seven Dollars
and Fifty Cents ($53,287.50) per annum payable monthly, in advance, in equal
consecutive monthly instalments of Four Thousand Four Hundred and Forty Dollars
and Sixty-Three Cents ($4,440.63) per month on the first day of each calendar
month. The annual Minimum Rent payable pursuant hereto is based on a rent factor
of Seven Dollars and Twenty-Five Cents ($7.25) per square foot per annum of
Rentable Area of the Leased Premises.

4.01.3 For the period of the Term commencing from the 1st day of January, 2003
and terminating on the 31st day of December, 2003 the Tenant shall pay to the
Landlord as annual Minimum Rent the sum of Fifty Five Thousand One Hundred
Twenty Five Dollars and Zero Cents ($55,125.00) per annum payable monthly, in
advance, in equal consecutive monthly instalments of Four Thousand Five Hundred
Ninety Three Dollars and Seventy-Five Cents ($4,593.75) per month on the first
day of each calendar month. The annual Minimum Rent payable pursuant hereto is
based on a rent factor of Seven Dollars and Fifty Cents ($7.50) per square foot
per annum of Rentable Area of the Leased Premises.

4.01.6 The Landlord shall have the right to adjust the rental rate in accordance
with paragraph 1.01.2 to reflect any changes in the Gross Rentable Area of the
Lease Premises.

4.02 If the Term commences on any day other than the first or ends on any day
other than the last day of a calendar month, all rent for the fractions of a
month at the commencement or expiration of the Term shall be prorated on a per
diem basis based on a period of three hundred and sixty-five days (365) days.

4.03 At the request of the Landlord, the Tenant shall present to the Landlord
thirty (30) days prior to the commencement of each year throughout the Term, a
series of monthly postdated cheques for each such year of the Term in respect of
the aggregate of the monthly payments of annual Minimum Rent and any payments of
additional rent estimated by the Landlord in advance, and any other payments
required by this Lease to be paid by the Tenant monthly in advance. If the
Tenant shall fail to deliver the postdated cheques within the period of thirty
(30) days aforesaid, the Tenant shall pay to the Landlord, as additional rent,
Twenty-five Dollars ($25.00) per month for manual cheque processing until such
time as the postdated cheques have been delivered to the Landlord in accordance
with the provisions hereof.

5. PAYMENT

5.01 All payments required to be made by the Tenant under or in respect of this
Lease shall be made to the Landlord at the Landlord's office at 160 Traders
Blvd. E., Suite 200, Mississauga, Ontario, L4Z 3K7, c/o The Georgian Development
Corporation, or to such agent or agents of the Landlord or at such other place
or address as the Landlord shall hereafter from time to time direct in writing
to the Tenant.

6. ADVANCE RENT AND SECURITY DEPOSIT

6.01 The Landlord acknowledges receipt from the Tenant of a cheque in the amount
of Nine Thousand Five Hundred and Two Dollars and Ninety-Four Cents ($9,502.94)
to be held by the Landlord without interest and to be applied against the
Minimum Rent payable for the first and last months of the Term of the Lease.

6.02 The Landlord acknowledges receipt from the Tenant of a cheque in the amount
of Four Thousand Five Hundred Dollars Ninety-Three and Seventy-Five Cents
($4,593.73) to be held by the Landlord without interest as security for the
faithful performance by the Tenant of all the terms, covenants and conditions of
this Lease.

6.03 The Landlord hereby reserving unto itself at its sole discretion, the right
to apply the amounts set out in Paragraph 6.01 and 6.02 hereof to any damages
resulting from default by the Tenant of any of its covenants and obligations
hereunder or towards the payment or reduction of any claim of the Landlord
against the Tenant including Minimum Rent. In the event the deposit hereunder
shall be applied in accordance with the provisions hereof, the Tenant covenants
to provide sufficient funds to ensure that the deposit remains at the level
hereinbefore indicated within ten (10) days of receipt of the Landlord's notice
therefore. If the Tenant shall fail to pay rent or additional rent on the date
such payment is due, the Tenant shall, within ten (10) days of the Landlord's
notice therefore, increase the deposit hereunder in an amount equal to the rent,
including all additional rent, for the last month of the Term.
<PAGE>

                                       4

7. ADDITIONAL RENT

7.01 Any and all sums of money or charges required to be paid by the Tenant
under this Lease (except Minimum Rent), shall be deemed and paid as additional
rent, whether or not the sums are designated as "additional rent" hereunder, or
whether or not the same are paid to the Landlord or otherwise, and all such sums
are to be payable in lawful money of Canada without the next monthly instalment
of Minimum Rent, unless otherwise provided herein, but in any event, such
additional rent is not payable as part of Minimum Rent. Additional rent may be
estimated by the Landlord from time to time and such estimated amount is payable
in monthly instalments in advance with annual adjustments, if necessary, and all
additional rent is deemed to be accruing on a day to day basis.

8. RENT AND ADDITIONAL RENT PAST DUE

8.01 If the Tenant fails to pay, when the same is due and payable, any rent or
additional rent payable by the Tenant under this Lease, such unpaid amount shall
bear interest from the due date thereof to the date of payment at a rate of
interest equal to four percent (4%) per annum above the prime rate of interest
charged to preferred clients by the Landlord's bankers in Toronto from time to
time.

9. TENANT'S COVENANTS

            The Tenant covenants with the Landlord:

9.01 Payment of Rent

            To pay Minimum Rent and additional rent in the manner and at the
times herein reserved.

9.02 Fair Assessment Tax

            That in each and every year during the Term, the Tenant shall pay as
additional rent and discharge within ten (10) days after the same becomes due
and payable, all taxes, rates, duties, assessments and other charges that may be
levied, rated, charged or assessed against or in respect of all improvements,
equipment and facilities on or in the Leased Premises and every tax and license
fee in respect of any and every business carried on thereon or therein or in
respect of the use or occupancy thereof by the Tenant and any and every
permitted occupant of the Leased Premises (other than corporate income, profits
or excess profits taxes assessed upon the income of the Landlord), whether any
such assessment tax, rate duty or license fee is charged by any federal,
municipal, provincial, school or other bodies during the Term.

The Tenant will indemnify and keep indemnified the Landlord from and against
payment for all loss, costs, charges and expenses, occasioned by or arising from
any and all such taxes, levies, rates, duties, assessments, license fees
(including all real property taxes pursuant to Paragraph 9.03 hereof), and any
and all taxes which may in the future be levied in lieu thereof. Any such loss,
costs, charges and expenses suffered by the Landlord pursuant to this Paragraph
9.02 may be collected by the Landlord as rent with all rights of distress and
otherwise as reserved to the Landlord in respect of rent in arrears. The Tenant
further covenants and agrees that upon the request of the Landlord, the Tenant
will promptly deliver to the Landlord, for inspection, receipts for payment of
all taxes, rates, duties, assessments and other charges payable by the Tenant
pursuant to this Paragraph 9.02 which were due and payable up to one month prior
to such request and will furnish such other information in connection therewith
as the Landlord may reasonably require. Provided further, if the Tenant or any
permitted occupant of the Leased Premises shall elect to have the Leased
Premises or any part thereof assessed for separate school taxes, the Tenant
shall pay to the Landlord as additional rent, as soon as the amount of such
separate school taxes is ascertained, any amount by which the amount of separate
school taxes exceeds the amount which would otherwise have been payable for
school taxes had such election not been made by the Tenant or the permitted
occupant of the Leased Premises.

9.03 Realty Taxes

            That the Tenant will, as additional rent, in each and every year
during the Term and within the time or times hereinafter provided, pay directly
to the Landlord or to the taxing authority as the Landlord may direct from time
to time, and discharge all real property taxes (including local improvement
rates, impost charges or levies), rates, duties and assessments of any nature or
kind that may be levied, rated, charged or assessed on the basis of a separate
real property tax bill and separate real property assessment notice against the
Leased Premises or any part thereof, from time to time by any taxing authority,
whether federal, provincial, municipal, school or otherwise, and
<PAGE>

                                      5

including, but without limitation, any such taxes payable by the Landlord which
are imposed in lieu of or as a substitute for such real property taxes or on
account of the Landlord's ownership of the Building, whether of the foregoing
character or whetheCustomer ServiceFinancial Printing Groupincluding, but
without limitation, any such taxes payable by the Landlord which are imposed in
lieu of or as a substitute for such real property taxes or on account of the
Landlord's ownership of the Building, whether of the foregoing character or
whether same existed at the commencement of the Term. The Tenant agrees to
provide the Landlord within ten (10) days after demand therefore by the Landlord
with a copy of any separate real property tax bills and separate real property
assessment notices for the Leased Premises.  The Tenant will, upon request,
promptly deliver to the Landlord receipts for payment of all such real property
taxes paid to any such taxing authorities, as aforesaid, and will furnish and
deliver all such other information in connection therewith as the Landlord may
reasonably require.  The Tenant shall pay to the Landlord its assessed amount in
respect of the Common Areas and Facilities.

9.03.2    In the event that there shall not be a separate real property tax bill
and separate real property assessment notice for the Leased Premises and the
Common Areas and Facilities, the Tenant shall pay a share of such real property
taxes (including local improvement rates) which may be levied, rated, charged or
assessed by any lawful taxing authority against the lands, buildings and
improvements comprising the Building (including the Common Areas and Facilities)
within ten (10) days after demand thereof by the Landlord as allocated to the
Leased Premises by the Landlord.  The Landlord shall allocate all such real
property taxes levied, rated, charged or assessed against the lands, buildings
and improvements comprising the Building, firstly as between all premises
intended for leasing and the Common Areas and Facilities, and secondly with
respect to the real property taxes so allocated to the premises intended for
leasing, the Landlord shall make a further allocation of all such real property
taxes as between each of the individual premises intended for leasing on such
basis as the Landlord acting reasonably shall in its sole opinion deem equitable
having regard among  other things, without limitation, to the various uses of
the premises intended for leasing comprising the Building, the cost of
construction of same, the relationship of the location and area of each of the
individual premises of the Building and the relative values and assessment
principals most recently used by the relevant taxing authorities with respect to
the calculation of real property taxes, including without limitation, the
assessed value upon which the business assessments in respect of all premises in
the Building are computed.  The Tenant shall pay its Proportionate Share (as
hereinafter defined) of all real property taxes so allocated to the Common Areas
and Facilities pursuant to this Paragraph 9.03.2 in accordance with the
provisions of Paragraph 11 hereof.

9.03.3    Payment of Tenant's Realty Taxes
          --------------------------------

          The amount payable by the Tenant pursuant to Paragraph  9.03.2 may be
estimated by the Landlord for such period or periods as the Landlord may
determine from time to time, and the Tenant shall pay to the Landlord such
estimated amount in monthly instalments in advance during such period, together
with all other rental payments provided for in this Lease.  Notwithstanding
anything hereinbefore contained, if at the time when payment by the Landlord of
the real property taxes (including local improvement rates), whether interim,
instalment or final is due, the Landlord shall not have on deposit a sufficient
sum to pay the full amount of such real property taxes, the Tenant shall
forthwith, upon demand, pay, as additional rent, the amount of any such
deficiency to the Landlord.  When the final real property tax bill in any year
is received, which relates to the period for which such estimated payments have
been made by the Tenant, as aforesaid, the parties hereto agree to adjust all
payments made by the Tenant on account of real property taxes in accordance with
such final real property tax bill which such tax bill shall be available for the
Tenant's inspection at the office of the Landlord.  The Tenant shall pay any and
all reasonable costs and expenses incurred by the Landlord in respect of any
appeal or contestation conducted by the Landlord of the real property taxes
levied or assessed against the Building.

9.03.4    "Sales Taxes" means any and all goods and services, taxes, sales
taxes, value added taxes, business transfer taxes, capital taxes, or any other
taxes imposed on the Landlord with respect to rent payable by the Tenant to the
Landlord under this Lease, or in respect of the rental of space under this
Lease, whether characterized as a goods and services taxes, sales tax, value
added tax, business transfer tax, or otherwise.

          Despite any other Article, Section, Paragraph, or Clause to this
Lease, the Tenant shall pay to the Landlord an amount equal to any and all Sales
Taxes, it being the intention of the parties that the Landlord shall be fully
reimbursed by the Tenant with respect to any and all Sales Taxes. The Sales
Taxes so payable by the Tenant shall be calculated by the Landlord in accordance
with the applicable legislation and shall be paid to the Landlord at the same
time as the amounts to which Sales Taxes apply are payable to the Landlord under
the terms of this Lease or upon demand at such other time, or times as the
Landlord from time to time determines, acting reasonably. Despite any other
Article, Section, Clause or Paragraph in this Lease, the amount payable by the
Tenant under this paragraph shall be deemed not to be rent but the Landlord
shall have all of the same remedies for and rights of recovery of such amount as
it has for recovery of rent under this Lease.

<PAGE>

                                       6

9.04 Utilities

9.04.01 That the Tenant shall be solely responsible for and shall promptly pay
charges for water, gas, electricity, telephone and any and all other utilities
used or consumed in, or any other charges for utilities levied or assessed on or
in respect to, the Lease Premises, and for all fittings, machines, apparatus or
other things leased in respect thereof, and for all work or services performed
by any corporation or commission in connection with such public or private
utilities. Should the Landlord elect to supply water, gas, electricity, and/or
sewer services for the Building, or any other utility used or consumed, or to be
used or consumed, in the Leased Premises, the Tenant shall purchase and pay for
the same as additional rent payable on demand to the Landlord, at rates not in
excess of public utility rates for the same service, if applicable. In no event
shall the Landlord be liable for, nor have any obligation with respect to, any
interruption or cessation of, or any failure in the supply of any such
utilities, services or systems, including, without limitation, the water and
sewage systems, to the Building or to the Leased Premises, whether or not
supplied by the Landlord or others.

9.04.2 If requested by the Landlord, or if included as part of the Tenant's work
in respect of the Leased Premises, the Tenant, prior to the commencement of the
Term, shall install, at its sole cost and expense, any and all separate meters
which are necessary in order to measure the consumption of utilities or services
used or consumed on the Leased Premises. In the event that separate meters are
not available or cannot be installed in the Leased Premises, the Tenant shall
pay the Tenant's share, as allocated to the Leased Premises, of the total cost
incurred by the Landlord in the supply of all utilities and services to the
Building, as reasonably and equitably determined by the Landlord, having regard,
among other things, without limitation, to the Tenant's connected load and the
then current applicable commercial rates for the municipality in which the Lease
Premises is located. Provided, without in any way limiting the provisions of
this Paragraph 9.04.2, if at any time during the Term, the Landlord shall
determine, in its sole discretion, that the Tenant's use of any utility or
service, including, without limitation, water, used or consumed on the Leased
Premises is in any way unusual or of any excessive nature, the Landlord may, at
its option and at the sole cost and expense of the Tenant, install in the Leased
Premises a separate meter or sub meter with respect to any such utility or
service, including, without limitation, a separate meter for the measurement of
hot and cold water, whereupon the Tenant's cost in connection with any such
utility or service shall be determined in accordance with such separate meter or
sub meter.

9.05 Repairs

9.05.1 That the Tenant shall, at its sole cost and expense and at all times,
keep and maintain the whole of the Leased Premises and every part thereof
(including, without limitation, all entrances, glass, doors, fixtures, equipment
and appurtenances thereof and improvements thereto) in good order and first
class condition, and shall promptly make all needed repairs and replacements for
damages caused by the Tenant or by those for whom the Tenant is in law
responsible and, without limiting the generality of the foregoing, the Tenant
shall keep the Leased Premises well painted, clean and in a tidy condition, all
as a careful owner would do, reasonable wear and tear accepted, as determined by
the Landlord. The Tenant shall maintain carpet, replace burnt out bulbs, repair
overhead doors, hot water tanks, front door closure and washrooms.

9.05.2 Notwithstanding the contents of Paragraph 9.05.1 hereof, the Landlord
shall maintain the sprinkler systems, heating systems, water systems, air
conditioning systems, ventilating systems, and all hot water tanks contained in
or forming part of the Leased Premises, the costs of which shall be recovered as
part of the Operating Costs pursuant to Paragraph 11.01. The Landlord shall
repair and/or replace the sprinkler systems, heating systems, water systems, air
conditioning systems, ventilating systems and all hot water tanks contained in
or forming part of the Leased Premises as required, the costs of all such
repairs and/or replacements shall be at the Tenant's sole cost and expense at
the time of such repair and/or replacement. Costs as a result of the Landlord's
default negligence or resulting from a structural fault, are the sole
responsibility of the Landlord.

9.06 Entry by Landlord

That it shall be lawful for the Landlord and its agent(s) at all reasonable
times during the Term to enter the Leased Premises to inspect the condition
thereof. Where an inspection reveals that repairs or replacements are necessary
pursuant to the requirements of Paragraph 9.05.1, the Landlord shall give to the
Tenant notice in writing, and immediately thereafter the Tenant will forthwith
proceed to make all necessary repairs or replacements in a good and workmanlike
manner and to the satisfaction of the Landlord, acting reasonably so as to
complete same within the time or times provided for in the notice delivered by
the Landlord as aforesaid. The failure by the Landlord to give notice shall not
relieve the Tenant from any of its obligations to repair or replace in
accordance with the provisions hereof. Provided further, that if the Tenant
refuses or neglects to repair promptly and to the reasonably satisfaction of the
Landlord as required pursuant to the provisions of Paragraph 9.05 hereof or in
accordance with any notice received from the Landlord pursuant to the
<PAGE>

                                       7

provisions of this paragraph 9.06 the Landlord may, but shall not be obligated
to, make such repairs or replacements without liability to the Tenant for any
loss or damage which may occur to the Tenant's property or to the Tenant's
business by reason thereof and upon completion, the Tenant shall forthwith pay
upon demand the Landlord's cost for making any such repairs or replacements plus
a sum equal to fifteen (15%) percent thereof for overhead, as additional rent.
The Tenant agrees that the making of any repairs or replacements by the Landlord
pursuant to this Paragraph 9.06 is not a re-entry or a breach of any covenant
for quiet enjoyment contained in this Lease.

9.07 Surrender of Leased Premises

9.07.1 Thirty (30) days prior to the surrender of the Leased Premises, the
Tenant shall submit to the Landlord a certificate from a qualified Heating and
Ventilating Contractor stating that the H.V.A.C. systems for the premises has
been inspected and in good repair and working order. If the Tenant fails to
submit such certificate to the Landlord within the time period specified herein
the Landlord shall perform said inspection, including any required repairs
and/or replacements, and the Tenant shall pay to the Landlord immediately upon
demand for all costs related to such work.

9.07.2 That at the expiration or sooner termination of the Term, the Tenant
shall peaceably surrender and yield up vacant possession of the Leased Premises
to the Landlord in the state of condition in which the Leased Premises were
provided to the Tenant at or prior to the commencement of the Term, to include
but not limited to floor coverings, wall finishes, electrical, mechanical and
plumbing systems, ceiling, doors and window coverings, failings, which the
Landlord shall restore the premises to such condition and that the Tenant shall
be liable and solely responsible for all charges and costs related to such work.
The Tenant shall surrender all keys for the Leased Premises to the Landlord at
the place then fixed for the payment of Minimum Rent and shall inform the
Landlord of all combination of all locks, safes and vaults of any kind in the
Leased Premises. The Tenant shall, however, if requested by the Landlord,
remove, at its sole cost and expenses, all improvements, erections, alterations,
fixtures or other appurtenance made, placed or erected at any time or times
prior to or during the Term in or on the Leased Premises and shall repair at its
sole cost and expense all damage to the Leased Premises caused by their
installation and/or removal. The Tenant's obligation to observe and perform the
covenant contained in this Paragraph 9.07 shall survive the expiration or sooner
termination of the Term. The Tenant's restoration work must be completed sixty
(60) days prior to the expiry of the Lease. The Landlord shall inspect the
premises immediately following this sixty (60) day period, and, should the
Tenant have failed to restore the premises to the condition in which they were
provided to the Tenant at or prior to the commencement of the Term, the Landlord
reserves the right to estimate the cost of the restoration work and the Tenant
shall pay to the Landlord, as additional rent, immediately upon demand the full
invoice amount. The restoration work shall be to a state which is marketable, at
the Landlord's discretion. If the restoration work, by the Landlord, is
performed after the Tenant vacates the unit at the expiration of the Term, the
Tenant shall pay occupation rent for the restoration period in which the
Landlord is restoring the unit. Occupation rent will be the equivalent to the
minimum plus additional rent on a per diem basis until the restoration work is
completed by the Landlord, not to exceed sixty (60) days.

9.08 Heat

9.08.1 The Tenant covenants to heat, at its own expense, from heating equipment
supplied by the Landlord, the Leased Premises to a degree sufficient to protect
the Leased Premises and their contents from damage by cold or frost, and to
operate, at its own expense, such heating and other mechanical equipment
supplied by the Landlord. Further, the Tenant will, at the expiration or sooner
termination of the Term, peacefully yield up unto the Landlord such heating
equipment and all other equipment and appurtenances thereto in good and
substantial repair and condition.

9.08.2 Notwithstanding the covenants of Paragraph 9.08.1 hereof, the Landlord
shall maintain and, if necessary, replace the heating system and provide regular
on-going maintenance to the heating system and the costs with respect to this
on-going maintenance and replacement shall be for the cost of the Tenant and
shall be recoverable pursuant to Paragraph 11.01. The Tenant shall, however, be
responsible and shall be liable for any cost of repairs, replacement and service
calls required in addition to the regular maintenance campaign undertaken by the
Landlord pursuant to this Paragraph 9.08.2 and such costs shall be payable to
the Landlord on demand.

9.09 Public Orders

That the Tenant shall, at its sole cost and expense, comply with all provisions
of law, including without limiting the generality of the foregoing, the
requirements of all federal, provincial and municipal legislative enactments,
bylaws or regulations now or hereafter in force which relate to the Leased
Premises and the conduct of business therein, or to the making of any repairs,
replacements, alterations, additions, changes, substitutions or improvements of
or to the Leased Premises. The Tenant will further comply with all police, fire,
health, safety and sanitary regulations imposed by
<PAGE>

                                       8

any governmental authorities or made by fire insurance underwriters.

9.10 Assignment and Subletting

9.10.1 That the Tenant will not assign this Lease in whole or in part, nor
sublet all or any part of the Leased Premises, nor mortgage or encumber this
Lease or the Leased Premises or any part thereof, nor suffer or permit the
occupation, or part with or share possession of, all or any part of the Leased
Premises by any other person, firm or corporation (all of the foregoing being
hereinafter referred to as a "transfer") without the prior written consent of
the Landlord in each instance, which consent shall not be unreasonably withheld,
subject to the provisions of Paragraph 9.10.2. 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. The Landlord shall use all reasonable
efforts to reply to the Tenant's request made pursuant to this Paragraph 9.10.1
within fifteen (15) days of receipt by it of the Tenant's request as aforesaid.
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 by
reason of a failure by the Landlord to reply to a request by the Tenant for
consent to a transfer. If there is a permitted transfer of this Lease, the
Landlord may collect rent from the assignee, sub-tenant or occupant (all of the
foregoing being hereinafter collectively referred to as the "transferee"), and
apply the net amount collected to the Minimum Rent required to be paid pursuant
to this Lease, but no acceptance by the Landlord or any payments by a transferee
shall be deemed a waiver of this covenant or the acceptance of the transferee as
Tenant or a release of the Tenant for the further covenant or the acceptance of
the transferee as Tenant or a release of the Tenant for the further performance
by the Tenant of the covenants or obligations on the part of the Tenant herein
contained. Any document evidencing the Landlord's consent to a transfer of this
Lease, if permitted or consented to by the Landlord shall be prepared by the
Landlord's solicitors, and all reasonable legal fees with respect thereto shall
be paid by the Tenant to the Landlord forthwith upon demand. Any consent by the
Landlord shall be subject to the Tenant causing any such transferee to promptly
execute an agreement directly with the Landlord agreed to be bound by all of the
terms, covenants and conditions contained in this Lease as if such transferee
and originally executed this Lease as Tenant. Notwithstanding that any such
transfer is permitted or consented to by the Landlord, the Tenant shall be
jointly and severally liable with the transferee upon this Lease and shall not
be released from performing any of the terms, covenants and conditions contained
in this Lease.

9.10.2 If the Tenant intends to effect a transfer of all or any part of the
Leased Premises or this Lease, in whole or in part, or of any [illegible] or
interest hereunder, then and so often as such event shall occur, the Tenant
shall give prior written notice to the Landlord of such Interest, specifying
therein the name of the proposed transferee and shall provide such information
with respect thereto, including without limitation, information concerning the
principals thereof and as to any credit, financial or business information
relating to the proposed transferee as the Landlord requires, and the Landlord
shall, within fifteen (15) days thereafter, notify the Tenant in written either,
that (a) it consents or does not consent to the transfer, or (b) it elects to
cancel this Lease in preference to the giving of such consent. If the Landlord
elects to cancel this Lease, as aforesaid the Tenant shall notify the Landlord
in writing within fifteen (15) days thereafter of the Tenant's intention either
to refrain from such transfer or to accept the cancellation of this Lease. If
the Tenant fails to deliver such notice within such period of fifteen (15) days,
this Lease will thereby be terminated upon expiration of the said fifteen (15)
day period. If the Tenant advises the Landlord that it intends to refrain from
such transfer, then, the Landlord's right to cancel this Lease as aforesaid
shall become null and void in such instance.

9.10.3 The Tenant shall not print, publish or display any notice or
advertisement advertising the whole or any part of the Leased Premises for the
purposes of assignment or subletting without the prior approval by the Landlord
of the complete text or format of any such notices of advertisement.

9.11 Corporate Ownership

That if the Tenant is a corporation or if the Landlord has consented to a
transfer of this Lease to a corporation, any transfer or issue by sale,
assignment, bequest, inheritance, operation of law or other disposition or by
subscription from time to time of all or any part of the corporate shares of the
Tenant or of any parent or subsidiary corporation of the Tenant or any
corporation which is an associate or an affiliate of the Tenant (as those terms
are defined pursuant to the Business Corporations Act S.O. 1982, and amendments
thereto) which result in any changes in the present effective voting control of
the Tenant by the parties holding such voting control at the date of execution
of this Lease (or at the date a transfer of the Lease to a corporation is
permitted) and which does not receive the prior written consent of the Landlord
in each instance, which consent may not be unreasonably withheld, shall entitle
the Landlord to terminate this Lease upon five (5) days' written notice to the
Tenant. If the Landlord elects to cancel this Lease as aforesaid, the Tenant
shall have the right to advise the Landlord within fifteen (15) days after
written notice of the Landlord's election to terminate this Lease that the
Tenant elects to have this Lease reinstated by the
<PAGE>

                                       9

transfer, sale, assignment or other disposition (the "re-transfer") from the
shareholders of the Tenant after such change in control to the shareholders of
the Tenant existing as of the date of the execution of this Lease (or at the
date that a transfer Customer ServiceFinancial Printing Grouptransfer, sale,
assignment or other disposition (the "re-transfer") from the shareholders of the
Tenant after such change in control to the shareholders of the Tenant existing
as of the date of the execution of this Lease (or at the date that a transfer of
this Lease to a corporation is permitted).  If the Tenant effects such re-
transfer within thirty (30) days following receipt of notice of the Landlord's
election, and forthwith thereafter provides the Landlord with evidence
satisfactory to the Landlord or such re-transfer, this Lease will be reinstated
as of the date of the termination by the Landlord as aforesaid.  If this Lease
is terminated, the Landlord may re-enter and take possession of the Leased
Premises whereupon the Landlord's rights and remedies contained in Paragraph 14
hereof shall apply.  The Tenant shall make available to the Landlord all
corporate books and records of the Tenant for inspection at all reasonable times
in order to ascertain whether there has been any change in control.  Provided,
notwithstanding anything contained in this Paragraph 9.11 to the contrary, the
provisions of this paragraph shall not apply to the Tenant if at such time (a)
the Tenant is a public corporation whose shares are traded and listed on any
recognized stock exchange in Canada or the United States, or (b) the Tenant is a
private corporation but is controlled by a public corporation defined as
aforesaid.

9.12      Nuisance
          --------

That the Tenant will not do or omit to do or permit to be done or omitted
anything upon or in respect of the Leased Premises, the doing or omission of
which, as the case may be, shall be or result in any nuisance or menace to the
Landlord or to the other Tenants of the Building, and including, without
limitation, the Tenant shall not keep in, on or around the Leased Premises any
animals, birds or other pets; and that no machinery shall be used on the Leased
Premises which shall cause any undue vibration in or to the Leased Premises, and
if the Landlord or any other occupants of the building shall complain that any
machinery or operation thereof in or on the Leased Premises is a nuisance to it
or them, as the case may be, upon receiving notice thereof, the Tenant will
immediately cease such nuisance.

10.       INSURANCE
          ---------

10.01     Landlord's Insurance
          --------------------

10.01.1   Subject to the provisions of Paragraph 11 hereof, the Landlord shall,
at all times throughout the Term of this Lease, take out and maintain insurance
covering:

10.01.1.1 The Building (excluding the foundations and excavations) and the
machinery, boilers and equipment contained therein and owned by the Landlord
(specifically excluding any property with respect to which the Tenant and other
Tenants of the Building are obligated to insure pursuant to Paragraph 10.02
hereof or similar sections in their respective leases) against damage by fire
and extended perils coverage including (where applicable) sprinkler leakage,
earthquake, flood and collapse in an amount of not less than the full
replacement cost thereof, and with such reasonable deductions as would be
carried by a prudent owner of a similar building, having regard to the size, age
and location of the Building;

10.01.1.2 The repair and replacement of boilers, pressure vessels, air-
conditioning equipment and miscellaneous electrical apparatus on a broad form
blanket coverage basis;

10.01.1.3 Loss of insurable gross profits attributable to all perils insured
against by the Landlord or commonly insured against by prudent landlords,
including loss of all rentals receivable from the Tenants in the Building in
accordance with the provisions of their respective leases, including Minimum
Rent and additional rent in such amount as the Landlord or the Landlord's
mortgagee from time to time requires;

10.01.1.4 Public liability and property damage including the exposure of
personal injury, bodily injury, property damage occurrence, owner's protective
coverage and contractual obligations coverage, in such reasonable amounts and
with such reasonable deductions as would be carried by a prudent owner of a
similar building, having regard to the size, age and location of the Building;
and;

10.01.1.5 Any other form of such reasonable insurance which the Landlord or the
Landlord's mortgagee reasonably requires from time to time for insurable risk
and in amounts against which a prudent landlord would insure.

10.01.2   Notwithstanding any contribution by the Tenant to the cost of
insurance premiums in respect of the insurance maintained by the Landlord for
the Building as herein provided, the Tenant acknowledges and agrees that no
insurable interest is conferred upon the Tenant under any policies of insurance
carried by the Landlord and the Tenant has no right to receive any proceeds of
any insurance policies carried by the Landlord.

<PAGE>

                                       10

10.01.3 The Landlord agrees to use all reasonable endeavours to obtain from its
insurers a waiver of the insurer's rights of subrogation to proceed against the
Tenant and against those for whom the Tenant is in law responsible. If as a
result of the obtaining of such waiver of subrogation, the costs of the
Landlord's insurance premiums are increase, the Tenant covenants to pay such
increase to the Landlord on demand.

10.02 Tenant's Insurance

10.02.1 The Tenant shall, throughout the Term of the Lease, at its sole cost
and expense, take out and keep in full force and effect in the names of the
Tenant, the Landlord and the Landlord's mortgagee, as their respective interests
may appear, the following insurance:

10.02.1.1 Insurance upon property of every description and kind owned by the
Tenant or for which the Tenant is legally liable or installed by or on behalf of
the Tenant and which is located within the Building, including, without
limitation, stock in trade, furniture, fittings, installations, alterations,
additions, partitions, fixtures and anything in the nature of a leasehold
improvement in an amount of not less than one hundred (100%) percent of the full
replacement cost thereof, with coverage against at least the perils of fire and
standard extended coverage, including sprinkler leakages (where applicable),
earthquake, flood and collapse. If there is a dispute as to the amount which
comprises the full replacement cost, the decision of the Landlord or the
Landlord's mortgagee shall be conclusive;

10.02.1.2 Broad form boiler and machinery insurance on a blanket repair and
replacement basis with limits for each accident in an amount not less than the
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 the Leased Premises or relating to or serving the Leased
Premises;

10.02.1.3 Business interruption insurance in such amounts as will reimburse the
Tenant for direct or indirect loss of earnings attributable to all perils
insured against in Paragraphs 10.02.1.1 and 10.02.1.2 and any other perils
commonly insured against by a prudent tenant or attributable to prevention of
access to the Leased Premises or the Building as a result of such peril;

10.02.1.4 Public Liability and property damage insurance including personal
injury liability, contractual liability, non-owned automobile liability and
owners' and contractors' protective insurance coverage with respect to the
Leased Premises and the Tenant's use of the Common Areas and Facilities,
coverage to include the activities and operations conducted by the Tenant and
any other parties on the Leased Premises and by the Tenant and any other parties
performing work on behalf of the Tenant and those for whom the Tenant is in law
responsible in any other part of the Building. Such policies shall be written on
a comprehensive basis with inclusive limits of not less than Five Million
Dollars ($5,000,000.00) for bodily injury to any one or more persons or property
damage, and such higher limits as the Landlord or the Landlord's mortgagee
reasonably requires from time to time, and shall not be invalidated as respects
the interests of the Landlord and the Landlord's mortgagee by reason of any
breach or violation of any warranties, representations, declarations or
conditions contained in the policies. All such policies must contain a
severability of interests clause, a cross liability clause and shall be primary
and shall not call into contribution any other insurance available to the
Landlord or to the Landlord's mortgagee, except where the Landlord or its agent
are directly at fault;

10.02.1.5 Tenant's legal liability insurance for the full replacement cost of
the Leased Premises; and

10.02.1.6 Any other form of insurance as the Tenant or the Landlord or the
Landlord's mortgagee reasonably requires from time to time, in form, in amounts
and for insurance risks against which a prudent tenant would insure.

10.02.1.7 Standard owner's form automobile insurance policy with One Million
Dollars ($1,000,000.00) inclusive limits.

10.02.2 All policies required to be written on behalf of the Tenant pursuant to
Paragraphs 10.02.1.1, 10.02.1.2, 10.02.1.3 shall contain the standard mortgage
clause of the Landlord's mortgagee and shall contain a waiver of any subrogation
rights which the Tenant's insurers may have against the Landlord and against
those for whom the Landlord is in law responsible.

10.02.3 All insurance policies of the Tenant shall be taken out with insurers
acceptable to the Landlord and shall be in a form satisfactory from time to time
to the Landlord. The Tenant agrees that certificates of insurance or, if
required by the Landlord or the Landlord's mortgagees, certified copies of each
such insurance policy, will be delivered to the Landlord as soon as practicable
after the placing of the required insurance. All such policies shall contain an
undertaking by the insurers
<PAGE>

                                      11

to notify the Landlord and the Landlord's mortgagee in writing not less than
thirty (30) days prior to any material change, cancellation, failure to renew,
or termination thereof.

10.02.4   The Tenant agrees that if the Tenant fails to take out or to keep in
force any such insurance referred to in Paragraph 10.02.1, or should any such
insurance not be approved by either the Landlord or the Landlord's mortgagee,
and should the Tenant not rectify the situation within forty-eight (48) hours
after written notice by the Landlord to the Tenant (stating if the Landlord or
the Landlord's mortgagee does not approve of such insurance, the reasons
therefore), the Landlord has the right without assuming any obligation in
connection therewith, to effect such insurance at the sole cost and expense of
the Tenant and all outlays by the Landlord shall be immediately paid by the
Tenant to the Landlord as additional rent on the first day of the next month
following such payment by the Landlord, without prejudice to any other rights
and remedies of the Landlord under this Lease.

10.02.5   If the occupancy of the Leased Premises, the conduct of business in
the Leased Premises, or any acts or omissions of the Tenant in the Building or
any part thereof, causes or results in any increase in premiums for the
insurance carried from time to time by the Landlord with respect to the
Building, the Tenant shall pay any such increase in premiums, as additional
rent, forthwith after invoices for such additional premiums are rendered by the
Landlord. In determining whether increased premiums are caused by or result from
the use and occupancy of the Leased Premises, a schedule issued by the
organization computing the insurance rate on the Building showing the various
components of such rate shall be conclusive evidence of the several items and
charges which make up such rate. The Tenant shall comply promptly with all
requirements and recommendations of the Insurer's Advisory Organization of
Canada (or any successor thereof) or of any insurer now or hereafter in effect,
pertaining to or affecting the Leased Premises.

10.02.6   If any insurance policy upon the Building 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 and occupation
of the Leased Premises or any part thereof by the Tenant or by any assignee or
sub-tenant of the Tenant, or by anyone permitted by the Tenant  to be upon the
Leased Premises, and if the Tenant fails to remedy the conditions giving rise to
the cancellation, threatened cancellation or reduction of coverage within forty-
eight (48) hours after notice thereof by the Landlord, the Landlord may, at its
option, either (a) reenter and take possession of the Leased Premises forthwith
by leaving upon the Leased Premises a notice in writing of its intention so to
do and thereupon the Landlord shall have the same rights and remedies as
contained in Paragraph 14 hereof, or, (b) enter upon the Leased Premises and
remedy the conditions giving rise to such cancellation, threatened cancellation
or reduction, and the Tenant shall forthwith pay the cost thereof to the
Landlord, which cost may be collected by the Landlord as additional rent and the
Landlord shall not be liable for any damage or injury caused to any property of
the Tenant or of others located on the Leased Premises as a result of such
entry.  The Tenant agrees that any such entry by the Landlord is not a re-entry
or a breach of any covenant for quiet enjoyment contained in this Lease.

11.       OPERATING COSTS
          ---------------

11.01     In each year of the Term, the Tenant will pay to the Landlord in
addition to the Minimum Rent specified in Paragraph 4.01 hereof, as further
additional rent, the Tenant's proportionate share (as hereinafter defined) of
the Landlord's costs and expenses of maintaining, operating, insuring,
repairing, supervising and administering the Building and the Common Areas and
Facilities ("Operating Costs"), as a first-class industrial mall-type building
so as to maintain its high character and distinction, such costs and expenses to
include (without duplication), without limitation:

11.01.1   The total costs and expenses incurred by the Landlord in insuring the
Building pursuant to Paragraph 10.01.1 hereof;

11.01.2   Real property taxes (including school taxes and local improvement
rates) and all business and other taxes, if any, from time to time payable by
the Landlord which are levied or assessed or allocated by the Landlord pursuant
to Paragraph 9.03.2 hereof, against or in respect of the Common Areas and
Facilities, or against the Landlord on account of its ownership thereof;

11.01.3   The total cost of operating, maintaining, lighting, cleaning
(including snow), heating equipment and air-conditioning equipment, supervising,
policing, landscaping, repairing (including any and all repairs to structural
portions) all Common Areas and Facilities, including, without limitation, all
monies paid or incurred to persons, firms or corporations employed by the
Landlord to perform same;

11.01.4   Depreciation (i) on all maintenance and cleaning equipment from the
commencement of the Term, and (ii) of the reasonable costs incurred and to
incurred after the date determined by the

<PAGE>

                                       12

Landlord for repairing or replacing all fixtures, equipment and facilities
serving or comprising the Building and the Common Areas and Facilities which, by
their nature, require periodic or substantial repair or replacement in either
case, at rates on the various items determined from time to time by the Landlord
acting reasonably and in accordance with sound accounting principles;

11.01.5 Interest calculated at two percentage points above the rates charged at
the end of the Landlord's fiscal year by the Canadian chartered bank designated
from time to time by the Landlord upon the unamortized portion of the original
cost of all maintenance and cleaning equipment and of the cost of such repairs
and replacement to the extent set out in Paragraph 11.01.4 above;

11.01.6 All expenses incurred or paid by the Landlord in connection with the
maintenance, repair (including any and all repairs to structural portions),
restoration, operation, supervision and administration of the Building and all
services connected therewith, including, without limitation, the cost of
providing hot and cold water, electricity, gas, sprinklers, sprinkler monitors,
lighting, steam or other public or private utilities not otherwise payable by
the Tenant, cost of window cleaning, painting, garbage removal, telephone and
other public utility costs, cost of service contracts with independent
contractors, mechanical service contracts on heating and air condition
equipment, remuneration to managing agents, costs of audit and accounting fees
together with an administrative fee of ten percent (10%) of such total annual
costs and expense payable pursuant to Paragraph 11.01 but specifically excluding
the costs under Paragraphs 11.01.1 and 11.01.2;

11.01.7 There shall however be excluded from Operating Costs the amounts or
proceeds actually recovered by the Landlord from insurance for repairs to damage
or from other tenants or parties relating to damage, the cost or repair of which
was included in Operating Costs.

11.02 The term "Proportionate Share" as used in Paragraph 11.01 and elsewhere in
the Lease, shall mean a fraction, the numerator of which is the Rented Area of
the Leased Premises and the denominator of which is the total rentable area of
the Building (excluding the Common Areas and Facilities and, for greater
certainty, excluding the area of any power and boiler room).

11.03 The amounts payable by the Tenant pursuant to Paragraph 11.01 may be
estimated by the Landlord for such period or periods as the Landlord may
determine from time to time, and the Tenant shall pay to the Landlord the
Tenant's Proportionate Share as so estimated of such amounts in monthly
installments, in advance, during such periods together with all other rental
payments provided for in this Lease. Notwithstanding anything contained in this
Paragraph 11.03 to the contrary, as such time as the Landlord expends any money
or incurs any charges or expenses in respect of the cost of maintaining,
operating, repairing, replacing or administering the Building and the Common
Areas and Facilities thereof, pursuant to Paragraph 11.01 hereof, or, as soon as
bills for all or any portion of the amounts so estimated by the Landlord, as
aforesaid, are received, the Landlord may thereafter bill the Tenant for the
Tenant's Proportionate Share thereof (less all amounts previously paid by the
Tenant on the basis of the Landlord's estimate aforesaid, which have not already
been so applied) and the Tenant shall forthwith pay to the Landlord upon demand
such amounts so expended or billed, as additional rent. At the end of the period
for which such estimated amounts have been made, the Landlord shall deliver to
the Tenant a statement of the actual amounts and costs referred to in Paragraph
11.01 and the determination of the Tenant's Proportionate Share thereof, and if
necessary, an adjustment shall be made between the parties hereto. If the Tenant
shall have paid in excess of such annual amounts, the excess shall be refunded
by the Landlord within a reasonable period of time after delivery of the said
statement. If the amount the Tenant has paid is less than such actual amounts
the Tenant agrees to pay the Landlord any such extra amount or amounts with the
next monthly payment of Minimum Rent.

11.04 Despite any other section or clause of this Lease, the Tenant shall pay to
the Landlord an amount equal to any and all goods and services taxes, taxes,
sales taxes, value added taxes, business transfer taxes, or any other imposed on
the Landlord with respect to Rent payable by the Tenant to the Landlord under
this Lease, or in respect of the rental of space under the Lease, whether to the
Landlord under this lease, or in respect of the rental of space under this
Lease, whether characterized as a goods and services tax, sales tax, value added
tax, business transfer tax or otherwise (herein called "Sales Taxes"), it being
the intention of the parties that the Landlord shall be fully reimbursed by the
Tenant with respect to any and all Sales Taxes payable by the Landlord.

12. MUTUAL COVENANTS

Provided, and it is expressly agreed:

12.01 Seizure and Bankruptcy

That, in case, without the written consent of the Landlord, the Leased Premises
shall
<PAGE>

                                       13

become and remain vacant or not used for a period of four business (4) days
while the same is suitable for use by the Tenant, or shall be used by any person
other than the Tenant, or in case the Term or any of the goods and chattels of
the Tenant shall be at any time seized or taken in execution or in attachment by
any creditor of the Tenant, or if the Tenant shall make any assignment for the
benefit of creditors or give any bill of sale without complying with The Bulk
Sales Act (Ontario) or become bankrupt or insolvent, or take the benefit of any
Act now or hereafter in force for bankrupt or insolvent debtors or file any
proposal or make an assignment for the benefit of creditors or if a receiver is
appointed for all or a portion of the Tenant's property or if any order is made
for the winding up of the Tenant, or if the Tenant shall make a sale in bulk,
or, if the Tenant abandons or attempts to abandon the Leased Premises or to sell
or dispose of any of the goods and chattels of the Tenant or to remove them from
the leased Premises so that there would not in the event of such sale or
disposal be sufficient goods on the leased Premises subject to distress to
satisfy all rentals due or accruing hereunder, or if the Tenant shall fail to
pay any rent or other sums due hereunder on the day or dates appointed for
payment thereof, or, if the Tenant shall fail to perform any other of the terms,
conditions, or covenants of this Lease to be observed or performed by the
Tenant, or if re-entry is permitted under any other terms of the Lease then, and
in every such case, the then current month's rent and the next ensuing three
month's rent and additional rent shall immediately become due and payable as
accelerated rent, and, at the option of the Landlord this Lease shall cease and
determine and the Term hereby demised shall immediately become forfeited and
void, in which event, the Landlord may re-enter and take possession of the
Leased Premises as though the Tenant or any occupant or occupants of the Leased
Premises was or were holding over after the expiration of the Term without any
rights whatsoever.

12.02 No Exceptions for Distress

That, in consideration of the leasing and letting by the Landlord to the Tenant
of the Leased Premises for the Term hereby created (and it is upon that express
understanding that these presents are entered into), and notwithstanding
anything contained in Section 30 of Chapter 232 of The Revised Statues of
Ontario, 1980, or any other Statutes subsequently passed to take the place of
the said Act or to amend the same, 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 rent in arrears by the Tenant or on distress
being made by the Landlord, this covenant and agreement may be pleaded as an
estoppel against the Tenant in any action brought to test the right to the
levying upon any such goods as are named as exempted in said Section or Sections
of the said Act or any amendments or amendments thereto; the Tenant waiving as
it hereby does all and every benefit that could or might have accrued to the
Tenant under and by virtue of the said Section or Sections of the said Act, or
any amendment or amendments thereto but for this covenant.

12.03 Public Liability

That 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 Building, or damage to
property of the Tenant or of others located on the Leased Premises, nor shall
the Landlord be responsible for any loss of or damage to any property of the
Tenant or others from any cause whatsoever, whether or not any such death,
injury, loss or damage results from the negligence of the Landlord, its agents,
servants, employees or any other parties for whom it may be in law responsible.
Without limiting the generality of the foregoing, the Landlord shall not be
liable for any injury or damage to persons or property resulting from fire,
explosion, falling plaster, steam, gas, electricity, water, rain, snow or leaks
from any part of the Leased Premises or from the pipes, appliances, plumbing
works, roof, or subsurface of any floor or ceiling or from the street or any
other place or by dampness or by any cause of whatsoever nature. The Landlord
shall not be liable for any such damage caused by other Tenants or persons in
the Building or by occupants of adjacent property or the public or caused by
construction or by any private, public or quasi-public work. 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 hold the Landlord harmless from and
against any claims arising out of damages to the same, including subrogation
claims by the Tenant's insurers.

12.04 Holding Over

That if the Tenant shall continue to occupy the Leased Premises at the
expiration of this Lease with the consent of the Landlord and without any
further written agreement, the Tenant shall be a monthly tenant and the monthly
Minimum Rent payable by the Tenant for a month or part thereof shall be equal to
200% of the monthly Minimum Rent paid or payable by the Tenant for the last
month of the Term pursuant to Paragraph 4 hereof and otherwise on the same terms
and condition herein set forth, except as to renewal of tenancy.

12.05 Over-Loading
<PAGE>

                                       14

            That the Tenant will not bring upon the Leased Premises 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 Leased
Premises and will not at any time overload the floors of the Leased Premises,
the roof deck, the perimeter walls, office ceilings, structural steel elements,
overhead doors or the parking lots, and that if any damage is caused to the
Leased Premises or Common Areas and Facilities by any machinery, equipment,
article or thing or by overloading, or by any act, neglect or misuse on the part
of the Tenant, or any of its servants, agents or employees, or by any person
having business with the Tenant on demand, the Tenant shall forthwith repair the
same or pay to the Landlord the cost of making good the same.

12.06 Tenant not to Overload Facilities

            That the Tenant will not install any equipment which would exceed or
overload the capacity of the utility facilities in the Leased Premises or the
electrical wiring and service in the Building or in the Leased Premises and
agrees that if any equipment installed by the Tenant shall require additional
utility facilities, same shall be installed, if available, and subject to the
Landlord's prior written approval thereto (which approval may not be
unreasonably withheld), at the Tenant's sole cost and expense in accordance with
plans and specifications to be approved in advance by the Landlord, in writing.

12.07 Plumbing Facilities

            That the plumbing facilities (if any) in the Leased Premises shall
not be used for any other purpose than that for which they are constructed, and
no foreign substance of any kind shall be thrown therein and the expense of any
breakage, stoppage or damage resulting from a violation of this provision shall
be borne by the Tenant, as additional rent, payable forthwith on demand.

12.08 Indemnification

            That, notwithstanding any other terms, covenants and conditions
contained in this Lease, including, without limitation, the Landlord's
obligation to take out insurance as set out in Paragraph 10.01.1 hereof, and the
Tenant's obligation to pay its Proportionate Share of the cost of insurance in
accordance with the provisions of Paragraph 11 hereof, the Tenant shall
indemnify the Landlord and save it harmless from and against any and all loss
(including loss of all rentals payable by the Tenant pursuant to this Lease)
claims, actions, damage, liability and expense in connection with loss of life,
personal injury, damage to property or any other loss or injury whatsoever
arising from or out of this Lease or any occurrence in, upon or at the Leased
Premises, or the occupancy or use by the Tenant of the Leased Premises or any
part thereof, or occasioned wholly or in part by any act or omission of the
Tenant, or by anyone permitted to be on the Leased Premises, by the Tenant. If
the Landlord shall, without fault on its part, be made a party to 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 any such
litigation. The Tenant shall pay all costs, expenses and legal fees (on a
solicitor and his client bases) that may be incurred or paid by the Landlord in
enforcing the terms, covenants and conditions in this Lease, unless a Court
shall decide otherwise.

12.09 Repair Where Tenant at Fault

            That, notwithstanding any other terms, covenants and conditions
contained in this Lease, including, without limitation, the Tenant's obligation
to pay its Proportionate Share of the costs of insurance in accordance with
Paragraph 11 hereof, in the event the Building, the Common Areas and Facilities
thereof, the Leased Premises, or any equipment, machinery facilities or
improvements contained therein or made thereto or the roof or the outside walls
of the Building, or any other structural portions thereof require repair or
become damaged or destroyed through the negligence, carelessness or misuse of
the Tenant, its servants, agents, employees, contractors, or through it or them
in any way, stopping up or injuring the heating apparatus, water pipes, drainage
pipes or other equipment or facilities or parts of the Building, the expense of
all such necessary repairs, replacements or alterations, plus a further fifteen
percent (15%) of the costs thereof, shall be borne by the Tenant who will pay
the same to the Landlord forthwith upon presentation of an account of such
expenses incurred by the Landlord as aforesaid.

12.10 Refuse

            That the Tenant will not use any outside garbage or other containers
or allow any ashes, refuse, garbage or other loose or objectionable material to
accumulate in or about the Leased Premises, and will at all times keep the
Leased Premises in a clean tidy and broom swept condition. The Tenant will not
store or cause to be stored outside of the Leased Premises, any of its
inventory, stock-in-trade, or raw materials.
<PAGE>

                                       15

12.11 Loading and Unloading

            That all loading and unloading of merchandise, supplies, materials,
garbage and all other chattels shall be effected only through or by means of
such doorways, corridors or loading docks as the Landlord shall designate from
time to time and shall be subject to all such rules and regulations as the
Landlord shall promulgate in connection therewith from time to time.

12.12 Leased Premises

            That, whenever in this Lease reference is made to the Leased
Premises, it shall include, without limitation, all structural portions,
improvements, equipment, systems and erections, in or upon the Leased Premises
or any part thereof from time to time.

12.13 Evidence of Payment by the Tenant

            That the Tenant shall from time to time at the request of the
Landlord, produce to the Landlord satisfactory evidence of the due payment by
the Tenant of all amounts required to be made by the Tenant under this Lease.

12.14 Adjustment of Taxes

            That the taxes and local improvement rates and, where necessary, all
other charges payable by the Tenant hereunder in respect of the first and least
years of the Term shall be adjusted between the Landlord and the Tenant
accordingly.

12.15 Tenant Shall Discharge All Liens

            That the Tenant shall promptly pay all its contractors, suppliers
and materialmen and shall do any and all things necessary to minimize the
possibility of a lien attaching to the Leased Premises or to any part of the
Building and should any lien be made or filed, the Tenant shall discharge the
same forthwith (after notice thereof is given to the Tenant) as the Tenant's
expense. In the event the Tenant shall fail to cause any such lien to be
discharged, as aforesaid, then, in addition to any other right or remedy of the
Landlord, the Landlord may, but it shall not be obligated, discharge 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 solicitors' fees (on a solicitor and his client basis) incurred herein
for the discharge of such lien shall be due and payable by the Tenant to the
Landlord as additional rent on demand.

12.16 Changing of Locks

            The Tenant covenants that it will not, without the Landlord's prior
written consent which shall not be unreasonably withheld, change or replace any
of the locks, cylinders or keys in the Leased Premises.

12.17 Window Coverings

            Should the Landlord have provided upon the interior of the windows
of the Leased Premises all such window coverings necessary to cover the windows
of the Leased Premises, of uniform material and style as adopted by the Landlord
for the entire Building. The window coverings installed pursuant to this
Paragraph 12.17 shall remain the exclusive property of the Landlord.

13. FIXTURES AND REMOVAL AND RESTORATION BY TENANT

13.01 All alterations, decorations, additions and improvements (sometimes
hereinafter collectively called "alterations") made by the Tenant, or made by
the Landlord on the Tenant's behalf (other than the Tenant's trade fixtures)
shall immediately become the property of the Landlord without compensation
therefore to the Tenant. Such alterations shall not be removed from the Leased
Premises either during or at the expiration of the Term or sooner determination
of this Lease except that:

13.01.1 The Tenant may at the end of the Term, if not in default, remove its
trade fixtures at its own cost;

13.01.2 The Tenant may remove its trade fixtures at the end of the Term, and
also during the Term, in the usual and normal course of its business or if such
trade fixtures have become excess for the Tenant's purpose or if the Tenant is
substituting therefore new and similar trade fixtures, provided the Tenant is
not in default and provided the Tenant first notifies the Landlord thereof.
<PAGE>

                                       16

13.02 The Tenant shall, in the case of every such installation or removal,
either during or at the end of the Term, make good any damage caused to the
Leased Premises or to the Building by the installation or removal of any such
alterations.

13.03 It is understood and agreed that the Tenant will not remove or carry away
from the Leased Premises any plumbing, heating, floor coverings affixed to the
floor of the Leased Premises, light fixtures, drapes or curtains, ventilating
and air-conditioning plant or equipment or other building service or services;
and the Tenant shall leave the plumbing, heating, ventilating and
air-conditioning equipment and systems in good operating condition, subject to
the Tenant's repair obligations hereunder, at the expiry of the Term.

13.04 If the Tenant dues not remove its trade fixtures at the expiration or
earlier termination of the Term, such trade fixtures, at the option of the
Landlord, shall become the Landlord's property and may be removed from the
Leased Premises and sold or otherwise disposed of by the Landlord.

14. RE-ENTRY

14.01 Proviso for re-entry by the Landlord on non-payment of rent or
non-performance of covenants.

14.02 Notwithstanding any statutory provision to the contrary, if the Tenant
shall fail to comply with any of its covenants herein contained including the
covenant to pay Minimum Rent and any additional rent due pursuant to this Lease,
the Landlord may give to the Tenant not less than five (5) days written notice
requiring such default to be remedied and if such default is not remedied by the
Tenant within the aforesaid five (5) day period, then and in any such case, the
Landlord shall be entitled to proceed against the Tenant pursuant to Paragraph
14.03 herein.

14.03 If the Landlord elects to re-enter, as herein provided, or if it takes
possession pursuant to legal proceedings or pursuant to any notice provided 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 may be necessary in
order to relet the Leased Premises, or any part thereof for such term or terms
(which may be for a term or terms extending beyond the Term of this Lease) and
at such rental or rentals and upon such other terms and conditions as the
Landlord, in its sole discretion, may deem advisable. Upon each such reletting
all rentals received by the Landlord from such reletting shall be applied,
first, to the payment of any indebtedness, other than rent due hereunder, owing
by the Tenant to the Landlord; second, to the payment of any costs and expenses
of such reletting, including brokerage fees, solicitor's fees and the costs of
such alterations and repairs, third, to the payment of all rentals due and
unpaid hereunder, and the residue, if any, shall be held by the Landlord and
applied in payment of future rent as the same may become due and payable
hereunder. If the rentals received from such reletting during any month shall be
less than that to be paid during the month by the Tenant hereunder, the Tenant
shall pay any such deficiency to the Landlord. Such deficiency shall be
calculated and paid monthly. 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 written notice of such intention is given to the
Tenant. Notwithstanding any such reletting without termination, the Landlord may
at any time thereafter elect to terminate this Lease for such previous breach.
Should the Landlord at any time terminate this Lease for any breach, in addition
to any remedies it may have, it may recover from the Tenant all damages it has
incurred or may incur by reason of such breach, including the cost of recovering
the Leased Premises, reasonable solicitor's fees, and including the worth at the
time of such termination of the excess, if any, of the amount of rent and
charges equivalent to the rent reserved in this Lease for the remainder of the
stated Term over the then reasonable rental value as determined by the Landlord
for the remainder of the stated Term, all of which amounts shall be immediately
due and payable from the Tenant to the Landlord.

15. EXPENSES AND REMOVAL OF CHATTELS

15.01 In case suit shall be brought for recovery of possession of the Leased
Premises, or, for the recovery of rent or any other amounts due under the
provisions of this Lease, or because of the breach of any other covenants herein
contained on the part of the Tenant to be kept or performed, and a breach shall
be established, the Tenant shall pay to the Landlord all expenses incurred
therefore, including reasonable solicitor's fees.

15.02 In case of removal by the Tenant of the goods and chattels of the Tenant
from the Leased Premises, the Landlord may follow same for thirty (30) days in
the same manner as is provided for in The Landlord and Tenant Act (Ontario).
<PAGE>

                                      17

16. LANDLORD MAY CURE TENANT'S DEFAULT

16.01 If the Tenant shall fail to pay, when due, any amounts or charges required
to be paid pursuant to this Lease, the Landlord, after giving five (5) days'
notice in writing to the Tenant, may, but shall not be obligated to, pay all or
any part of the same. If the Tenant is in default in the performance of any of
its covenants or obligations hereunder, (other than payment of Minimum Rent or
other sums required to be paid pursuant to the terms of this Lease), the
Landlord may from time to time after the giving of such notice as it shall deem
sufficient, having regard to the circumstances applicable (or no notice in the
case of an emergency or apprehended 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 requisite, 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 may reasonably consider requisite
or necessary. All expenses incurred and expenditures made by or on behalf of the
Landlord under this Paragraph 16, plus a sum equal to fifteen percent (15%)
thereof shall be additional rent hereunder and shall be paid by the Tenant upon
demand. The Landlord shall have no liability to the Tenant for any loss or
damage resulting from any such action by the Landlord, and any entry by the
Landlord under the provisions of this Paragraph 16 shall not constitute a breach
of the covenant for quiet enjoyment or an eviction.

17. LIEN ON TRADE FIXTURES AND SECURITY OVER TENANT'S CHATTELS

17.01 If the Tenant at the expiration or earlier termination of this Lease shall
be in default under any covenant or agreement contained herein, the Landlord
shall have a lien on all stock-in-trade, inventory, fixtures, equipment and
facilities of the Tenant as security against loss or damage resulting from any
such default by the Tenant, and the stock-in-trade, inventory, fixtures,
equipment or facilities shall not be removed by the Tenant until such default is
cured, or as otherwise directed by the Landlord.

17.02.1 The Tenant hereby grants to the Landlord a security interest ("Security
Interest") in all personal property of any kind including, without limiting the
generality of the aforegoing, all goods, chattels, trade fixtures, furniture,
equipment, inventory, stock-in-trade, chattel paper, instruments, documents of
title, supplies, securities and intangibles (hereinafter collectively called the
"Collateral") which are or may, at any time hereafter, be in or on the Leased
Premises, to secure the payment of all Minimum Rent and additional rent and the
fulfilment of the other obligations of the Tenant under this Lease. Except for
the Security Interest, the Tenant agrees that all Collateral shall be the
unencumbered property of the Tenant. The Tenant agrees that it shall, at the
request of the Landlord, enter into a separate security agreement, mortgage or
other similar charge or security instrument, in addition to this security
agreement hereby granted, or agrees to document separately the Security Interest
hereby granted on such terms as the Landlord shall reasonably require on all of
the Collateral in the Leased Premises at any time during the Term including all
after-acquired items forming part of the Collateral, as security for the payment
of Minimum Rent, additional rent and the performance by the Tenant of all of its
other obligations pursuant to this Lease. Notwithstanding any additional or
separate security agreement, mortgage, charge or other security instrument given
by the Tenant to the Landlord, the Tenant confirms and agrees that the Security
Interest given pursuant to this Paragraph 17.02.1 is complete and intended to be
valid without the necessity of the Tenant's giving or having to give any other
or further documentation. The Tenant agrees that the Security Interest shall
attach to the Collateral forthwith upon the execution hereof and that, to the
extent necessary to give full effect to this Paragraph 17.02.1, this Lease is
entitled to be considered a Security Agreement as defined in the Personal
Property Security Act of Ontario;

17.02.2 The Landlord may, on any default by the Tenant under this Lease, realize
upon the Collateral and enforce its rights under the Security Interest by any
remedy or proceeding permitted at law or by this Agreement, including, without
limitation, all or any rights and remedies available to a secured party under
the Personal Property Security Act of Ontario and any other similar statute,
including the right to recover the reasonable expenses of retaking, holding,
repairing, processing, preparing for disposition and disposing of the Collateral
and other reasonable expenses including reasonable legal costs incurred by the
Landlord;

17.02.3 This Security Interest shall not be deemed to have been satisfied,
discharged or redeemed by reason of the Tenant's not being indebted to the
Landlord at any time or from time to time and no payment shall reduce the amount
secured by this Security Interest except to the extent expressly approved by the
Landlord in writing;

17.02.4 This Security Interest is given in addition to and not as an alternative
to any other rights of the Landlord under this Lease or at law including,
without limitation, the Landlord's rights of distress.
<PAGE>

                                      18

18. ADDITIONAL RENT

18.01 If the Tenant shall be in default in the payment of any amounts or charges
required to be paid pursuant to the terms of this Lease, they shall, if not paid
when due, be collectible as rent with the next monthly instalment of Minimum
Rent thereafter falling due hereunder, but nothing herein contained shall be
deemed to suspend or delay the payment of any amount, money or charge at the
time same becomes due and payable hereunder, or limit any other remedy of the
Landlord. The Tenant covenants and 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, in its sole
discretion, sees fit.

19. NET LEASE

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

20. QUIET ENJOYMENT

20.01 Upon the payment by the Tenant of the rents herein provided and upon the
observance and performance of all covenants, terms and conditions of the
Tenant's part to be observed and performed, the Tenant shall peaceably and
quietly hold and enjoy the Leased Premises for the Term hereby demised without
hindrance or interruption by the Landlord, or any other person or persons
lawfully claiming by, through or under the Landlord, subject, nevertheless, to
the terms and conditions of this Lease.

21. RIGHT OF ENTRY

21.01 The Landlord or its agents shall have the right to enter the Leased
Premises at all times, (i) to examine the same, (ii) to show them to prospective
purchasers, lessees, or mortgagees, and, (iii) without any obligation upon the
Landlord to do so, to make such repairs, alterations, improvements or additions
to the Leased Premises or the Building as the Landlord may deem necessary or
desirable. The Landlord shall be allowed to take all materials into and upon the
Leased Premises which may be required therefore without the same constituting an
eviction of the Tenant in whole or in part, and the rent reserved hereunder
shall not abate while such repairs, alterations, improvements or additions are
being made due to any loss or interruption of the business of the tenant or
otherwise. The Landlord shall not be liable for any damage, injury or death
caused to any person or property of the Tenant or of others located on the
Leased Premises as a result of such entry. During the six (6) months prior to
the expiration of the Term the Landlord may exhibit the Leased Premises to
prospective tenants and place upon the Leased Premises its usual notice "To Let"
which notice the Tenant shall permit to remain thereon without molestation. If
the Tenant shall not be personally present to open and permit an entry into the
Leased Premises at any time when for any reason entry therein shall be necessary
or permissible, the Landlord or its agents may enter the same by a master key or
may forcibly enter the same, and without rendering the Landlord or such agents
liable therefore, and without in any manner affecting the obligations and
covenants of the Lease. Nothing herein contained, however, shall be deemed or
construed to impose upon the Landlord any obligation, responsibility or
liability whatsoever for the care, maintenance or repair of the Premises or any
part thereof except as otherwise herein specifically provided.

22. IMPROVEMENTS

22.01 If the Tenant shall during the Term desire to make alterations,
decorations, additions or improvements (sometimes hereinafter collectively
called "alterations") to any part of the Leased Premises, it may do so at its
own expenses at any time and from time to time, provided that such alterations
shall be made by contractors approved by the Landlord (such approval not to be
unreasonably denied or delayed), and provided further, that the Tenant's rights
to make such alterations to the Leased Premises shall be subject to the
following conditions:

22.01.1 Before undertaking any such alterations, the Tenant shall submit to the
Landlord a plan showing the proposed alterations and shall obtain the written
approval and consent of the Landlord to the same and such approval and consent
shall not be unreasonably withheld or delayed, provided such alterations are of
a non-structural nature, and further provided, no such alterations by the Tenant
shall commence until the Tenant has delivered to the Landlord a copy of all
requisite permits with respect hereto.
<PAGE>

                                      19

22.01.2 All such alterations shall conform to all building bylaws, if any, then
in force affecting the Leased Premises, the Building and the Lands and such
alterations or improvements shall be completed in a good and workmanlike manner.

22.01.3 Such alterations will not be, in the sole opinion of the Landlord acting
reasonably, of such kind or extent as to in any manner weaken the structure of
the Building after the alterations are completed or reduce the value of the
Building, and the Lands, in which case the Landlord may arbitrarily withhold its
consent to same.

23. FIRE.

23.01 Provided, and it is hereby expressly agreed, that if and whenever during
the Term, the Building shall be destroyed or damaged by fire, lightning or
other perils as are insured against by the Landlord from time to time, then and
in every such event:

23.01.1 If the damage or destruction to the Building renders twenty-five percent
(25%) or more of the Building wholly unfit for occupancy or if it is impossible
or unsafe to use and occupy the Building, or if in the reasonable opinion of the
Landlord the Building is damaged or destroyed to such a material extent or the
damage or destruction is of such a nature that the Building must be or should be
totally or partially demolished, whether to be reconstructed in whole or in part
or not, or if the cost of repairing or rebuilding the Building as a result of
such damage or destruction exceeds twenty-five percent (25%) of the replacement
cost thereof, the Landlord may at its option, terminate this lease by giving to
the Tenant notice in writing of such termination, in which event this Lease and
the Term hereby denied shall cease and be at an end as of the date of such
destruction or damage, and the Minimum Rent and all other payments for which the
Tenant is liable under the terms of this Lease shall be apportioned and paid in
full to the date of such destruction or damage.

23.01.2 If the damage or destruction is such that the Leased Premises are
rendered unfit for occupancy or if it is impossible or unsafe to use and occupy
the Leased Premises, and if in other event, the damage, in the reasonable
opinion of the Landlord, to be given to the Tenant within thirty (30) days of
the happening of such damage or destruction cannot be repaired with reasonable
diligence within one hundred and twenty (120) days from the happening of such
damage or destruction, then either the Landlord or the Tenant may within five
(5) days next succeeding the giving of the Landlord's opinion, as aforesaid,
terminate this Lease by giving to the other notice in writing of such
termination, in which event this Lease and the Term hereby devised shall cease
and be at an end as of the date of such damage or destruction, and the Minimum
Rent and all other payments for which the Tenant is liable under the terms of
this Lease shall be apportioned and paid in full to the date of such destruction
and damage. In the event that neither the Landlord nor the Tenant so terminate
this Lease, then, the Landlord shall repair the Leased Premised (to the extent
only of the Landlord's work in connection with the original construction of the
Leased Premises and for greater certainty shall in no event include any
leasehold improvement or fixtures unless originally installed by the Landlord)
with all reasonable speed and the Minimum Rent and additional rent hereby
reserved shall state.

23.01.3 If the damage is such that the Leased Premises are wholly unfit for
occupancy or if it is impossible and unsafe to use and occupy the Leased
Premises, but, if in either event, the damage, in the reasonable opinion of the
Landlord to be given to the Tenant within thirty (30) days from the happening of
such damage, can be repaired (to the extent hereinbefore set out in Paragraph
23.01.2) with reasonable diligence within one hundred and twenty (120) days from
the happening of such damage, then, the Minimum Rent and additional rent hereby
reserved shall not abate. Subject to the provisions relating to Unavoidable
Delay as set out in Paragraph 32.01 hereof, if the Landlord shall fail to repair
the damage within the aforesaid period of one hundred and twenty (120) days then
Minimum Rent shall abate from the one hundred and twenty first (121st) day until
the damage shall be repaired to the extend hereinbefore set out in Paragraph
23.01.2.

23.01.4 If, in the reasonable opinion of the Landlord, the damage to the Leased
Premises can be made good, as aforesaid, within one hundred and twenty (120)
days of the happening of such destruction or damage, and the damage is such that
the Leased Premises are capable of being partially used for the purpose for
which the Leased Premises are hereby leased, then, until such damage has been
repaired (to the extent set out in Paragraph 23.01.2), the Minimum Rent shall
abate to the proportion that the part of the Leased Premises rendered unfit for
occupancy bears to the whole the Leased Premises, and the Landlord shall repair
the damage (to the extent set out in Paragraph 23.01.2) with all reasonable
speed.

23.01.5 In the event the Landlord shall elect to repair, reconstruct or rebuild
the Building or the Leased Premises, as the case may be, in accordance with the
provisions of this Paragraph 23, it is acknowledged and agreed by the Tenant
that the Landlord shall be entitled to use plans and specifications and working
drawings in connection therewith other than those used in the original
<PAGE>

                                      20

construction of the Building or the Leased Premises; and

23.01.6 The decision of the Landlord's architect or engineer as to the time
within which the Building and/or the Leased Premises can or cannot be repaired,
the state of tenantability or fitness of the Leased Premises and/or the
Building, and as to the date on which the Landlord's work of repair is
completed, shall be final and binding upon the parties hereto.

24. ASSIGNMENT BY LANDLORD

24.01 The Landlord declares that it may assign its rights under this Lease to a
lending institution as collateral security for a loan to the Landlord and in the
event that such as assignment is given and executed by the Landlord, and
notification thereof is given to the Tenant by or on behalf of the Landlord, it
is expressly agreed between the Landlord and the Tenant that this lease shall
not be cancelled or modified for any reason whatsoever except as provided for,
anticipated or permitted by the terms of this Lease or by law, without the
consent in writing of such lending institution.

24.02 The Tenant covenants and agrees with the Landlord that it will, if and
whenever reasonably required by the Landlord, consent to and become a party to
any instrument relating to this Lease which may be required by or on behalf of
any purchaser, lender or mortgagee from time to time of the Leased Premises.

25. LIMITATION OF LANDLORD'S LIABILITY

25.01 The term "Landlord" as used in this Lease shall, so far as the covenants
and obligations on the part of the Landlord are concerned, be limited to mean
and include only the owner or owners at the time in question of the Building and
in the event of any conveyance or transfer of ownership by the Landlord herein
named, and in the case of any subsequent transfer or conveyances, the then
vendor or transferor shall be automatically freed and relieved from and after
the date of such transfer or conveyance of all personal liability in respect of
the performance of any covenants or obligations on the part of the Landlord
contained in this Lease thereafter to be performed, provided that:

25.01.1 Any funds in the hands of the Landlord or the then vendor or transferor
at the time of such transfer, in which the Tenant has an interest, shall be
turned over to the purchaser or transferee and any amount then due and payable
to the Tenant by the Landlord or the then vendor or transferor under any
provision of this Lease shall be paid to the Tenant and have assumed, subject to
the limitations of this Paragraph, all of the terms, covenants and conditions
consigned in this Lease to be performed on the part of the Landlord.

25.02 It is the intention of the parties pursuant to this Paragraph 25 that the
covenants and obligations contained in this Lease on the part of the Landlord
shall, subject as aforesaid, be binding upon the Landlord, in successors and
assigns, only during and in respect of their respective periods of ownership.

26. SIGNS

26.01 The Tenant will not paint, fix, display, or cause to be painted, fixed or
displayed, any sign, picture, advertisement notice, lettering or decoration on
any part of the exterior or the interior of the Leased Premises without, in each
instance, the prior written approval of the Landlord, not to be unreasonably
denied or delayed. All signs erected by the Tenant with the Landlord's approval,
as aforesaid, shall nevertheless be of uniform size, lettering and location as
the signs of all other tenants in the Building. Any such signs or other
advertising material, as aforesaid, shall be removed by the Tenant at the
expiration or earlier termination of this Lease and the Tenant shall promptly
repair any and all damage caused by the installation or removal. Provided, if
the Landlord shall, in its sole discretion, desire to establish a uniform sign
policy for all tenants of the Building, then, the Tenant acknowledges and agrees
that the Landlord, at its option, shall be entitled to erect all signs or other
advertising material in or on the Building, advertising the respective tenants
business operations therein (including the Tenant named herein). The cost of
such sign and installation and erection thereof in respect of the Leased
Premises shall be borne entirely by the Tenant and shall be payable forthwith on
demand, as additional rent.

26.02 The parties agree that the Landlord shall be entitled, at its own option,
to design and install a tenant directory board indicating the location of the
Tenant and any other tenants of the Building and the Tenant shall pay its
Proportionate Share of the cost of the designing, building and installation of
the tenant directory board which shall be payable forthwith on demand as
additional rent.
<PAGE>

                                       21

27.         WAIVER OF BREACH

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

28. NOTICES

28.01 Any notice, demand request or other instrument which may be or is required
to be given under this Lease shall be delivered in person or sent by registered
mail, postage prepaid, and shall be addressed (a) if to the Landlord at 160
Traders Blvd. E., Suite 200, Mississauga, Ontario L4Z 3K7 or at such other
address as the Landlord designates by written notice, and (b) if to the Tenant,
at the Leased Premises, (c) if to the Indemnifier, at the Leased Premises. Any
such notice, demand, request or consent is conclusively deemed to be given or
made on the date upon which such notice, demand, request or consent is
delivered, or if mailed, then four (4) days following the date of mailing, as
the case may be, and the time period referred to therein commences to run from
the time of delivery or four (4) days following the date of mailing, as the case
may be. Either party may at any time give notice in writing to the other of any
change of address of the party giving such notice and from or after the giving
of much notice, the address therein specified is deemed to be the address of
such party for the giving of notices hereunder. Provided, however, if the postal
service is interrupted or substantially delayed for any reason whatsoever, then,
any notice, demand, request or other instrument shall be delivered in person
only.

29. STATUS STATEMENT

29.01 Within ten (10) days after written request therefore by the Landlord, or
in the event that upon any sale, assignment, lease or mortgage of the Leased
Premises or the lands thereunder by the Landlord, a status statement shall be
required from the Tenant, the Tenant hereby agrees to deliver in the form
supplied by the Landlord a certificate to any proposed mortgages or purchaser or
to the Landlord, stating (if such be the case) that:

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

29.01.2 The date of the commencement of the Term;

29.01.3 The date to which the Minimum Rent has been paid under this Lease; and

29.01.4 Whether or not there is any existing default by the Tenant in the
payment of Minimum Rent or other sum of money under this Lease, and whether or
not there is any other existing 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.

30. SUBORDINATION

30.1 This Lease and all of the rights of the Tenant hereunder are, and shall at
all times, be subject and subordinate to any and all mortgages, trust deeds or
the charge or lien resulting from any other method of financing or refinancing
or any renewals, or extensions thereof, now or hereafter in force against the
Lands, Buildings and improvements comprising the Building. Without limiting the
foregoing, upon the request of the Landlord, the Tenant will subordinate this
Lease and all of its rights hereunder in such form or forms as the Landlord may
require to any such mortgage, trust deeds or the charge or lien resulting from
any other method of financing or refinancing and to all advances made or
hereafter to be made upon the security thereof, and will if requested,
[ILLEGIBLE] to the holder thereof. No subordination by the Tenant shall have the
effect of permitting the holder of any mortgage or charge or other security to
disturb the occupation and possession by the Tenant of the Leased Properties, so
long as the Tenant shall perform all of the terms, covenants, conditions,
agreements and provisos contained in this Lease and so long as the Tenant
executes contemporaneously, a document of [ILLEGIBLE] required by any such
mortgage or other encumbrancer. If within ten (10) days after the date of any
request in respect thereof, the Tenant has not executed and delivered to the
Landlord any instruments or certificates required pursuant to the provisions of
this Paragraph 30 or Paragraph 29 hereof, then, it shall be deemed that the
Tenant has provided a status statement in the form provided by the Landlord.
<PAGE>

                                     22

31. PARKING

31.01 As hereinbefore provided in paragraph 1.02 of this Lease, the Tenant shall
have the non-exclusive right, at all times, in common with others entitled
thereto, so the use of the common driveway and parking areas appurtenant to the
Building, provided that the Landlord shall have the right at all times:

31.01.1 To make all changes, improvements or alterations as the Landlord may, in
its sole discretion, from time to time, decide in respect of the common
driveways and common parking areas, including, without limitation, the right to
change the location and the layout of any such common driveways and common
parking areas; and

31.02 Notwithstanding anything herein contained to the contrary, the Landlord
shall be entitled to do and perform all such acts, changes, improvements and
alterations in and to the Building and the Common Areas and facilities thereof,
including, without limitation, the parking areas, as in the use of good business
judgement, the Landlord shall from time to time determine to be advisable with a
view to improve the use thereof by the Tenant and the other tenants of the
Building and their respective agents, employees and customers.

31.03 The Tenant acknowledges that the Landlord shall not have any
responsibility for policing the parking facilities so as to ensure that each
tenant of the Building shall park in its allocated space, if any. The Building
and the Common Areas and Facilities are at all times subject to the exclusive
control and management of the Landlord, who shall have the right to establish
from time to time all rules and regulations for the general management and
operation thereof.

31.04 The Tenant shall furnish the Landlord, upon request, with the current
licenses plate numbers of all vehicles used by the Tenant and its employees, and
the Tenant shall thereafter notify the Landlord of any changes within five (5)
days after such change occurs. Without in any way limiting the generality of the
foregoing, the Landlord shall have the right, at the cost and expense of the
Tenant, and without liability on the part of the Landlord, to remove any and all
abandoned vehicles in, on or around the lands and parking areas forming part of
the Building, upon first giving to the owner of any such abandoned car
twenty-four (24) hours notice (provided, however, if the Landlord after the
exercise of reasonable diligence is unable to locate the owner of such abandoned
vehicle, then, the Landlord shall not be required to first give notice to such
owner prior to the removal of the abandoned vehicle).

32. IMPOSSIBILITY OF PERFORMANCE AND UNAVOIDABLE DELAY

32.01 Notwithstanding anything to the contrary contained in this Lease, 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
strikes, labour troubles, inability to procure materials or services, power
failure, restrictive governmental laws or regulations, riots, insurrection,
sabotage, rebellion, war, acts of god, or other reasons whether of a like nature
or not which is not the fault of the party delayed in performing work or doing
acts required under the terms of this Lease ("Unavoidable Delay"), then, the
performance of such term, covenant or act is excused for the period of the delay
and the party so delayed 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 paragraph 32 shall not in any way operate
to excuse the Tenant from the prompt payment of Minimum Rent and additional rent
or any of the payments required by the terms of this Lease.

33. MISCELLANEOUS

            The Landlord and Tenant agree that:

33.01 Successors and Assigns

            All rights and liabilities herein given to, or imposed upon, the
respective parties hereto shall extend to and bind the several respective
permitted heirs, executors, administrators, successors and assigns of the said
parties, and if there shall be more then one (1) Tenant, they shall be bound
jointly and severally by the terms, covenants and agreements contained herein.
No rights, however, shall enure to the benefit of any assignee of the Tenant
unless the assignment to such assignee has been approved by the Landlord in
writing as provided in Paragraph 9.10 hereof.

33.02 Accord and Satisfaction

            No payment by the Tenant or receipt by the Landlord of a lesser
amount than the monthly Minimum Rent herein stipulated shall be deemed to be
other than on account of the earliest stipulated rent, nor shall any endorsement
or statement or any cheque or any letter accompanying any cheque or payment as
rent be deemed an accord and satisfaction, and the
<PAGE>

                                       23

Landlord may accept such cheque or payment without prejudice to the Landlord's
right to recover the balance of such rent or pursue any other remedy in this
Lease provided.

33.03 Entire Agreement

This Lease and the Schedules and Riders, if any, attached hereto and forming
part hereof, together with the rules and regulations promulgated by the Landlord
from time to time 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 the parties hereto other than
are herein set forth. Except as herein otherwise provided, no subsequent
alteration, amendment, change or addition to this lease shall be binding upon
the Landlord or the Tenant unless in writing and signed by each of them.

33.04 Captions and Section Numbers

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

33.05 Extended Meanings

33.05.1 The word "Tenant" shall be deemed to include the word "lessee" and shall
mean each and every person or party mentioned as a tenant herein, be the same
one or more, and if there shall be more than one Tenant, any notice required or
permitted by the terms of this Lease may be given by or to any one thereof, and
shall have the same force and effect as if given by or to all thereof. Any
reference to "Tenant" shall include, where the context allows, the servants,
employees, agents, and invitees of the Tenant and all others over whom the
Tenant exercises control. Wherever the word "Landlord" is used in this Lease, it
shall be deemed to include the word "lessor" and to include the Landlord and its
duly unauthorized representatives. The words "hereof", "herein", "hereunder" and
similar expressions used in any section or subsection relate to the whole of
this Lease, and not to that section or that subsection only, unless otherwise
expressly provided.

33.05.02 The use of the neuter singular pronoun to refer to the Landlord or the
Tenant shall be deemed a proper reference even though the Landlord or the Tenant
may be an individual, a partnership, a corporation, or a group of two or more
individuals or corporations. The necessary grammatical changes required to make
the provisions of this Lease apply in the plural sense wherever there is more
than one Landlord or Tenant and to other corporations, associations,
partnerships, or individuals, (males or females), shall in all instances be
assumed as though in each case fully expressed.

33.06 Partial Invalidity

            If any term, covenant or condition of the Lease or the application
thereof to any portion or circumstance 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.

33.07 Registration

            The Tenant shall not register this lease without the written consent
of the Landlord. However, upon the request of either party hereto, the other
party shall join in the execution of a memorandum or so-called "short form" of
lease for the purposes of registration. Said memorandum or short form of lease
shall only describe the parties, the Leased Premises and the Term of this Lease,
and shall be (1) prepared by the Tenant's solicitors, (2) subject to the
approval of the Landlord and its solicitors and (3) registered at the Tenant's
expense.

33.08 Governing Law

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

33.09 Time of the Essence

            Time shall be of the essence of this Lease and of every part hereof.

33.10 Notice By Tenant
<PAGE>

                                      24

      The Tenant shall, when it becomes aware of same, or when the Tenant,
acting reasonably, should have become aware of same, notify the Landlord of any
damage to, or deficiency or defect, in any part of the Building, including the
Leased Premises and any equipment or utility systems, or any installation
located therein, notwithstanding the fact that the Landlord may have no
obligation with respect to same.

33.11 Rules and Regulations

      The Tenant and its employees and all persons visiting or doing business
with the Tenant shall be bound by the rules and regulations attached to this
Lease as Schedule "D" and all such rules and regulations shall be deemed to be
Incorporated in and form part of this Lease.

33.12 Schedules

      The following schedules attached to this Lease shall form a part thereof:

            Schedule "A"   - Site Plan
            Schedule "B"   - Legal Description
            Schedule "C"   - Landlord's Work/Additional Clauses
            Schedule "C-1" - Existing Layout
            Schedule "D"   - Rules and Regulations
            Schedule "E"   - Option to Renew

DATED at Mississauga, on the 27th day of October, 2000.

SIGNED, SEALED AND DELIVERED) CHANNELL COMMERCIAL CANADA INC.
in the Presence of:         )
                            )
/s/ [ILLEGIBLE]             )
                            )
                            )
                            ) For: /s/ [ILLEGIBLE]
                            )     ----------------------------------------- c/s
                                  Ms. Jayne Walker, Director-Finance (TENANT)
                                  I/We have the authority the bind the company

DATED at Mississauga on the 27th day of October, 2000.

SIGNED, SEALED AND DELIVERED) BELSTON DEVELOPMENTS INC.
in the Presence of:         )
                            )
/s/ [ILLEGIBLE]             )
                            )
                            )
                            ) For: /s/ [ILLEGIBLE]
                            )     ----------------------------------------- c/s
                                  Gene [ILLEGIBLE], Vice President (LANDLORD)
<PAGE>

                                      25

                                  SCHEDULE "A"

                                   SITE PLAN

Westfield III Business Park
Beleton Developments Inc.

                               [GRAPHIC OMITTED]
<PAGE>

                                      26

                                  WESTFIELD III

                                  SCHEDULE "B"

                               LEGAL DESCRIPTION

ALL AND SINGULAR that certain parcel or tract of land and premises being Lot
Number 4 and Part of Lot Number 3, Registered Plan M-240, designated as Parts 1
to 9, on Plan 43R12723, City of Mississauga, Registered in the Land Registry
Office for the Land Titles Division of Peel at Brampton.
<PAGE>

                                      27

                                  SCHEDULE "C"

                       LANDLORD'S WORK/ADDITIONAL CLAUSES

1. LANDLORD'S WORK

1.01 The Tenant agrees that there is no promise, representation or undertaking
by or binding upon the Landlord with respect to any alteration, remodelling of
or decoration of equipment or fixtures in the Leased Premises and that the
Tenant is taking the Premises "as is", save and except for painting of the
office portion of the Leased Premises which the Landlord shall complete prior to
occupancy, once the Lease is signed by both parties. The Tenant shall choose
such paint colour from the Landlord's standard samples.

2. WARRANTIES

2.01 Landlord warrants that at the date set for occupancy, any pre-existing
heating and/or air conditioning equipment in the unit(s), will be in good
working order. Landlord further warrants that all electrical and plumbing
fixtures will be in good working order as of the date set for occupency by the
Tenant.

3. RE-ZONING OR ALTERING PREMISES

3.01 Should the Tenant require any additional rezoning, additions and/or
alterations to the demised premises and/or the building in order to meet
environmental standards, fire code standards, or other regulations municipally
or provincially imposed, the Landlord shall provide such for the Tenant, at the
Tenant's sole expense.
<PAGE>

                                       28

                                 SCHEDULE "C-1"

                                EXISTING LAYOUT

                                [GRAPHIC OMITTED]
<PAGE>

                                       29

                                  SCHEDULE "D"

                              RULES & REGULATIONS

1.    The Tenant shall not prepare any food or permit any cooking or install any
      vending machines in the Leased Premises without the written consent of
      Landlord.

2.    The sidewalks, entrances, driveways and roadways shall not be obstructed
      or used by the Tenant, its agents, services, contractors, invitees or
      employees for any purpose other that ingress to and egress from the Leased
      Premises. The Landlord reserves the entire control of all parts of the
      Building employed for the common benefit of the Tenants thereof.

3.    No common area shall be blocked by the Tenant and shall be used only for
      ingress and egress to and from the demised premises or the building.

4.    The Tenants, its agents, servants, contractors, invitees or employees,
      shall not bring in or take out, position, construct, or equipment or
      anything liable to injure or destroy any part of the Building without
      first obtaining the consent in writing of the Landlord. In giving such
      consent, Landlord shall have the right, in its sole discretion, to
      prescribe the weight permitted and the position thereof and use and design
      of planks, skids or platforms, to distribute the weight thereof. All
      damage done to the Building by moving or using any such heavy equipment or
      machinery shall be repaired at the expense of the Tenant. The moving of
      all heavy equipment or machinery shall be repaired at the expense of the
      Tenant. The moving of all heavy equipment or other machinery shall occur
      only by prior arrangement with the Landlord.

5.    The Landlord will furnish the Tenant, free of charge, two (2) keys to the
      Tenant's entry door. The Landlord shall make a reasonable charge for any
      additional keys. The Tenant shall not have any such keys copied. The
      Tenant, upon the termination of the Lease, shall deliver to the Landlord,
      all keys to the demised premises, and the access cards to the Building.

6.    The Tenant shall not place or cause to be placed any additional locks,
      bolts or mail slots upon any doors of the Leased Premises without the
      approval of Landlord and subject to any conditions imposed by Landlord.

7.    The Tenant will not use the Leased Premises for sleeping apartments or
      residential purposes, or for the storage of personal effects or articles
      other than those required for business purposes.

8.    No signs, advertising or notice shall be attached to or placed on the
      exterior or interior of the Building or the parking areas or sidewalks.

9.    No animals or birds of any kind shall be brought into or kept in or about
      the Building or the demised premises.

10.   The water closets and other water apparatus shall not be used for any
      purpose other than those for which they were constructed, and no
      sweepings, rubbish, rags, ashes or other substances shall be thrown
      therein. Any damage resulting by misuse shall be borne by the Tenant.

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

12.   The Tenant shall not deface or mark any part of the Leased Premises or
      drive nails, spikes, hooks or screws into the walls or woodwork of the
      Leased Premises.

13.   The Tenant shall not receive or ship articles of any kind except through
      facilities, and designated doors.

14.   No inflammable oils or other inflammable, dangerous or explosive
      materials, except those approved in writing by Landlord's insurers, shall
      be kept or permitted to be kept in the Leased Premises.
<PAGE>

                                       30

                                                  Rules and Regulations - Page 2

15.   The Tenant shall not permit undue accumulations of garbage, trash, rubbish
      or other refuse within or without the Leased Premises or cause or permit
      objectionable odours to emanate or be dispelled from the Leased Premises.

16.   If the demised premises or any part of the Building becomes infested with
      vermin, as a result of the use or neglect on the part of the Tenant, the
      Tenant shall reimburse the Landlord for the extermination expenses.

17.   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 needed for the safety, care and cleanliness of the Building, and for
      the preservation of good order therein.
<PAGE>

                                       31

                                  SCHEDULE "E"

                                OPTION TO RENEW

If: (a) the Tenant and the Occupant of the whole of the Leased Premises is the
Tenant which executed this Agreement, (b) the Tenant has throughout the Initial
Term duly, regularly and punctually paid all of the Rent and observed all of the
other terms and conditions contained in this Agreement and the Lease, (c) the
Tenant has given written notice of its intention to exercise this Option to
Renew and received by the Landlord no later than six (6) months prior to the
expiration of the Initial Term, then the Tenant shall have the right to extend
the Term for a further period of Three (3) years on the same terms and
conditions as are contained in this Agreement and the Lease, except (i) for the
further right of renewal, (ii) that the Tenant shall accept the Leased Premises
in an "as is" condition at the commencement of the Renewal Term, (iii) should
the Tenant not obtain a renewal, or Lease renegotiation directly through the
Landlord, the Tenant shall pay an administration fee to the Landlord upon
signing the Lease, and (iv) for the Minimum Rent payable during the Renewal
Term. The Minimum Rent to be paid during the Renewal Term shall be the then
current market rate mutually agreed upon by the parties by no later than ninety
(90) days prior to the expiry of the Initial Term. Notwithstanding the
foregoing, in no event shall the Minimum Rent payable during the Renewal Term be
less than the Minimum Rent payable during the last twelve (12) calendar month
period of the Initial Term.

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