Document:

<PAGE>

                                                                    Exhibit 10.7

                                                  Building M-11 - 50,400 s.f.
                                                  Term: 10/01/94 - 09/30/99
                                                  Option 10/01/99 - 09/30/04

PROFORM FITNESS PRODUCTS, INC.
1500 South 1000 West
Logan, Utah 84321

                                 LEASE AGREEMENT
                                 (Real Property)

     THIS LEASE AGREEMENT (hereinafter "Agreement") , is made and entered into
this 1st day of October, 1994 , by and between FREEPORT CENTER ASSOCIATES
(hereinafter referred to as "Landlord") and PROFORM FITNESS PRODUCTS, INC., a
Utah corporation, (hereinafter referred to as "Tenant").

                                    RECITALS:

     A. Landlord is the owner of the certain real property more fully described
on Exhibit "A", attached hereto and by this reference incorporated herewith.

     B. Tenant is a Utah corporation engaged in the manufacture and sale of
exercise equipment.

     C. Tenant is in need to suitable space within which he may conduct some
portion of its operations.

     D. Landlord and Tenant have communicated to one another the above-described
circumstances and their respective desires to lease the real property described
on Exhibit "A" hereto, and have heretofore negotiated the terms of this
Agreement and desire to memorialize the terms thereof by this instrument.

     NOW, THEREFORE, in consideration of the above premises, the covenants and
promises hereinafter set forth, and other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the Landlord and Tenant
hereby agree as follows:

                                ARTICLE I - LEASE

     1.01. Lease of Property. In consideration of the rents, covenants and
agreements hereinafter set forth, Landlord hereby leases to Tenant and Tenant
hereby hires from Landlord, the real property described on Exhibit "A" hereto,
located in Davis county, Utah, together with

                                      -1-

<PAGE>

all improvements and fixtures presently associated therewith, all of which is
referred to hereinafter as the "Subject Property".

     1.02. Term. The term of this Lease shall be for a total period of Five
Years ( 60 ) months, commencing on the date of this Agreement and ending Sept.
30, 1999, and on a month to month basis for up to eight additional months plus
any additional periods that the Tenant may so elect pursuant to Paragraph 1.03,
below.

     Should Tenant holdover the demised premises or any part thereof after the
expiration of the term of this Lease, unless otherwise agreed in writing, such
holding over shall constitute a tenancy from month-to-month only, and Tenant
shall pay a sun equal to one and one-half (1 1/2) times the monthly rental
provided herein, payable monthly in advance, but otherwise on the same terms and
conditions as herein provided, except as to any provisions hereof relating to
renewals of extensions.

     1.03 Additional Periods. Provided that Tenant is not in default of the
terms of this Lease at the time of notification or the effective date of the
extended term of this Agreement, Tenant shall have the option to renew and
extend this Agreement for one (1) additional five (51) year period, upon the
terms and conditions stated herein, upon giving Landlord written notice of such
intent to renew no later than sixty (60) days prior to the expiration of the
term of this Agreement. The monthly rent for the one five-year option period to
be:

     Oct. 1, 1999 - Sept. 30, 2004           $ 17,500 month

     1.04 Lease Payments. Tenant agrees to pay without offset or deduction, and
Landlord agrees to accept, the following amounts as the Lease payments for the
Subject Property:

     A.   Fixed Rents. As and for the monthly fixed rental for the Subject
Property, Tenant agrees to pay the following rate per square foot per month:

                        Rent Per Square     Aggregate      Total
                        ---------------     ---------      -----
Building - SQ.  Ft.      Foot Per Month    Monthly Rent     Rent
-------------------      --------------    ------------     ----

Bldg. M-11               .30               $15,120         $907,200
50,400 sq. ft.                                 375 (parking area paved)
                                           -------
                                           $15,495         $929,700

     B.   Time and Method. The lease payments for each month during the lease
period of this Agreement shall be payable in advance on the first day of each
month during the term of this Agreement and shall be made payable to the
Landlord at his below listed address, or such other address as may be later
designated in writing, by the Landlord.

     1.05 Security Deposit.

                                      -2-

<PAGE>

     A.    Amount. The Tenant will deposit with the Landlord a security deposit
of none for the Subject Property which will be held by Landlord according to
this Section 1.05.

     B.    Non-Payment. The above deposit shall be held by the Landlord (without
liability for interest) as security for the faithful performance by the Tenant,
of all of the terms, conditions and covenants of this Agreement, which are to be
kept and performed by the Tenant during the term hereof. If at any time during
the term of this Agreement, which are to be kept and performed by the Tenant
during the term hereof. If at any time during the term of this Agreement, any of
the lease payments herein reserved shall be overdue and unpaid, or any other sun
payable by Tenant to Landlord hereunder shall be overdue and unpaid, then
Landlord may, at its option (but Landlord shall not be required to) ,
appropriate and apply any portion of said deposit to the payment of any such
overdue lease payments or other sums.

                    ARTICLE II - RIGHTS AND DUTIES OF TENANT

     2.01. Use of Subject Property. Tenant shall use the Subject Property for
the purpose of conducting and carrying on the design, manufacture and sale of
exercise and fitness equipment, and engaging in activities allied or related
thereto and for no other purpose without the written consent of Landlord. Tenant
shall not utilize the Subject Property for any unlawful purpose or activity.
Tenant represents it will not produce, store or use any hazardous or toxic waste
or substance, PCB, dioxin or asbestos on the Subject Property.

     2.02. Improvements by Tenant. The Tenant shall not make any alterations or
improvements in or to the Subject property without the prior consent of the
Landlord. All alterations and improvements made shall be at the Tenant's
expense, and ail such alterations and improvements made or added to the Subject
Property, may be removed by Tenant so long as the Tenant repairs any damages to
the Subject Property occasioned by such removal or such removal does not result
in any damage to the Subject Property; provided, however, that at the time of
Landlord's consent, Landlord shall specify whether the alterations and/or
improvements must be or may be removed by Tenant at the end of the lease term.

     2.03. Miscellaneous Expenses. Tenant agrees, at its own expense, to pay all
cleaning and janitor costs relative to the Subject Property; to provide its own
insurance on improvements and personal property installed or placed by Tenant in
or on the Subject Property; to pay all costs and expenses of every nature in
connection with Tenant's business activities on the Subject Property, including
but not limited to all utility, garbage collection and other charges incurred by
Tenant. In addition, Tenant at its own expense, shall pay all property taxes,
and fire insurance related to Tenant's personal property and improvements and
fixtures installed by Tenant. See Rider 1, Rider 2, Rider 3.

     2.04. Insurance. Tenant shall, at all times during the term of this
Agreement, maintain in full force and effect, and pay all premiums for, public
liability and general hazard insurance with a reputable insurance company or
companies acceptable to Landlord covering Tenant's personal property, inventory,
improvements and fixtures (but not covering the Subject Property). The general
liability limits of said policy or policies shall not be less than $1,000,000.00
per

                                      -3-

<PAGE>

person and per occurrence. Tenant shall, upon request, furnish to Landlord a
copy of each policy, and each such policy shall provide that it may not be
canceled without prior written notice to Landlord. Landlord and Tenant waive and
relinquish any right or claim, including rights of subrogation, against one
another that may arise out of any fire or other hazard occurring upon or to the
Subject Property or any property (real or personal) of either party located in
or upon the Subject Property. See Rider 4.

     2.05. Repair and Maintenance. Tenant shall at all times during the term
hereof, and any extensions thereof, keep the Subject Property in sightly
condition, and in good repair, and shall not permit the accumulation of any
rubbish on the Subject Property. The word "repair" as used in this paragraph
shall include any repairs, replacements, changes and/or additions to the Subject
Property which may be required by Tenant's use and occupancy thereof, and shall
include scheduled servicing and maintenance of all heating and air conditioning
equipment and snow removal. In addition to maintaining the Subject Property the
Tenant shall keep it free from all liens, encumbrances and security interest,
not sell, misuse, conceal, or in any way dispose of it or permit it to be used
unlawfully or for hire or contrary to the provisions of any insurance coverage;
and not permit it to become a fixture or an accession to other goods. The
provisions of this paragraph shall not apply to repairs or reconstruction in the
event of damage by fire, casualty or other destruction, or in the event of
eminent domain, which shall be the responsibility of Landlord. See Rider 5.

     2.06. Liens and Encumbrances. Tenant agrees that it shall not take any
actions, nor make any representations in connection with the Subject Property,
nor Tenant's business activities on the Subject Property, which shall have the
affect of, or result in the attachment of any lien or other encumbrance to the
Subject Property or other-wise to interfere with Landlord's title to the
underlying real property. Tenant agrees to repay Landlord the cost to remove any
lien with 181 annual interest on any cost to Landlord.

                   ARTICLE III - RIGHT AND DUTIES OF LANDLORD

     3.01. Assignment and Subletting. Tenant will not assign this Agreement in
whole or in part, nor sublet all or any part of the Subject Property, without
the prior written consent of Landlord in each instance, which consent shall not
be unreasonably with-held. The consent by Landlord to any assignment or
subletting shall not constitute a waiver of the necessity for such consent to
a-ny subsequent assignment or subletting. If this Agreement be assigned, or if
the Subject Property, or any part thereof, be sublet or occupied by anybody
other than Tenant, Landlord may collect rent from the assignee, subtenant or
occupant, and apply the net amount collected to the rent herein reserved; but no
such assignment, subletting, occupancy or collection shall be deemed a waiver of
this covenant, or the -acceptance of the assignment, subtenant or occupant as
tenant or a release of Tenant from the further performance by Tenant of its
covenants and agreement specified herein. Notwithstanding any assignment or
sublease, Tenant shall remain fully liable on this Agreement and shall not be
released from performing any of the terms, conditions and covenants of this
Agreement without the express written consent of Landlord.

                                      -4-

<PAGE>

     3.02. Entry by Landlord. Landlord or its agents shall have the right to
enter and inspect the Subject Property upon notice to Tenant and at reasonable
times and in such manner so as not to interfere with Tenant's business, to
examine the Subject Property and to show the Subject Property to prospective
purchasers or lessees of the Subject Property and to make repairs, alterations,
improvements or additions as Landlord may deem necessary or desirable. in the
case of emergency, if Tenant or Tenant's agent shall not be personally present
to open and permit an entry into the Subject Property at any time when, Landlord
or Landlord's agent may enter the same by a master key or may forcibly enter the
same without in any manner affecting the obligations and covenants of this
Agreement, any damage caused to property by Landlord would be repaired by the
Landlord at its cost. Nothing herein contained, however, shall be deemed or
construed to impose upon Landlord any obligations, responsibility or liability
whatsoever for the care, maintenance or repair of the Subject Property, or any
part thereof, except as otherwise herein specifically provided.

     3.03. Quiet Enjoyment. Landlord warrants and represents that it shall place
and maintain Tenant in the peaceful and undisturbed possession of the Subject
Property throughout the entire term of this Agreement (including any extensions
thereof) so long as Tenant pays the lease payments and performs all of its
covenants as specified herein. This Agreement shall be subject and subordinate
to the lien of any mortgage or mortgages or trust deed or deeds which may be
placed upon the Subject Property or the underlying real property, by Landlord,
and Tenant covenants that it will execute and deliver to Landlord or to the
nominee of Landlord proper subordination agreements to this effect at a time
upon the request of Landlord and without payment being made therefore. Landlord
agrees not to create any lien or encumbrance on the Subject Property which shall
adversely affect Tenant's right or interest in this Agreement or in the Subject
Property, and to defend and indemnify Tenant against all damage or expense
suffered by Tenant as a result of the creation or enforcement of any such lien
or encumbrance. Any mortgage or deed of trust executed by Landlord upon the
Subject Property shall be upon the condition that the mortgages or Trust Deed
upon foreclosure or exercise of power of sale shall be subject to this Agreement
and Landlord's rights hereunder as provided by law. In the event of any failure
of Landlord to abide by the provisions hereof, or in the event of any default of
Landlord in performance of its obligations to the holder of an encumbrance on
the Subject Property, Tenant may at its election cure any default under any such
mortgage or deed of trust but shall not be obligated to do so, and Tenant may
deduct the cost of curing such default from the lease payments thereafter to be
paid pursuant to this Agreement, and Tenant shall thereupon be subrogated to the
rights of the holder of such mortgage or deed of trust against Landlord.

     3.04. Waiver of Landlord's Lien. Landlord hereby expressly waives and
relinquishes any and all rights it may have or may hereafter acquire in and to a
Landlord's or other lien upon any of the inventory, fixtures, furnishings,
equipment or improvements of the Tenant that may from time to time be located in
or upon the Subject Property, in this regard, Landlord acknowledges that Tenant
may from time to time grant various lenders a security interest in and to
Tenant's inventory, furnishings, fixtures, equipment and other improvements that
may be located upon the Subject Property for the purpose of securing certain
indebtedness essential in the operation of Tenant's business. Accordingly,
Landlord shall not now or hereafter claim any lien or other right in and to any
of Tenant's inventory, equipment, furnishings, fixtures or

                                      -5-

<PAGE>

improvements. Further, Landlord agrees to execute such landlord waivers as may
from time to time be required by Tenant's lenders, so long as such landlord
waivers are not inconsistent with the terms of this Agreement.

     3.05. Insurance. Landlord shall, at all times during the term of this
Agreement, maintain in full force and effect: and pay all premiums for public
liability and general hazard insurance with a reputable insurance company or
companies acceptable to Tenant covering the Subject Property and all of
Landlord's improvements thereon (but not covering Tenant's personal property,
inventory, improvements or fixtures). The general liability limits of said
policy or policies shall not be less than $1,000,000.00 per person and per
occurrence. Landlord and Tenant waive and relinquish any right or claim,
including rights of subrogation, against one another that may arise out of any
fire or other hazard occurring upon or to the Subject Property or any property
(real or personal) of either party located in or upon the Subject Property.

     3.06 Destruction of the Subject Property. In the event of a partial
destruction of the Subject Property during the term of this Agreement, or any
extension thereof, from any insured cause, Landlord shall forthwith repair the
same, provided such repairs can be made within ninety (90) days under the laws
and regulations of state, federal, county or municipal authorities; but such
partial destruction shall, in no way, annul or void this Agreement, except that
the lease payments reserved to be paid hereunder shall be equitably adjusted
according to the amount and value of the undamaged space. If such repairs cannot
be made within ninety (90) days, this Agreement may be terminated at the option
of either party.

                           ARTICLE IV - EMINENT DOMAIN

     4.01. Total Taking. If the whole of the Subject Property hereby demised
shall be taken or condemned by any competent authority for any public use or
purpose or if so much thereof shall be taken so that Tenant would be unable to
continue normal business operations, then the Lease term hereby granted shall
cease on the day prior to the vesting of title in such authority and lease
payments hereunder shall be paid and adjusted as of that date; any prepaid
rental shall be prorated as of the date of such termination.

     4.02. Partial Undertaking. if a portion of the Subject Property shall be
taken and, as a result thereof, there shall be such a major change in the
character of the Subject Property as to prevent Tenant from using the same in
substantially the same manner as theretofore used, then and in that event
Tenant, upon fifteen (15) days notice to Landlord, may either cancel and
terminate this Agreement as of the date when that part of the Subject Property
so taken shall be required for such public purpose, or said Tenant way continue
to occupy the remaining portion. In the event Tenant shall remain in possession
and occupancy of the remaining portion of the Subject Property, all the terms
and conditions of this Agreement shall remain in full force and effect with
respect to such remaining portion, except that the lease payments reserved to be
paid hereunder shall be equitably adjusted according to the a-mount and value of
such remaining space; and provided, further, that Landlord shall, at Landlord's
own expense, promptly and with all reasonable diligence, do such work as to make
a complete architectural unit of the remainder of the Subject Property and this
Agreement shall continue for the balance of its term, subject to

                                      -6-

<PAGE>

the terms and conditions herein stated. The portion, if any, of the award or
compensation paid on account of such taking to which Tenant is entitled pursuant
to the provisions of paragraph C hereof shall be made available to and used by
Tenant to pay for the cost or repairing, restoring or constructing said
buildings and improvements. If any part of Tenant's portion of the award of
compensation shall not be required to pay for the cost of such work, such
portion shall, except for the rights of any first mortgagee, be divided equally
between Tenant and Landlord.

                     ARTICLE V - EVENTS OF DEFAULT; REMEDIES

     5.01. Default by Tenant. Upon the occurrence of any of the following events
Landlord shall have the remedies set forth in Section 5.02.

     A.    Tenant fails to pay any rental or any other sum due hereunder within
ten (10) days after the same shall be due.

     B.    Tenant fails to perform any other term, condition, or covenant to be
performed by it pursuant to this Agreement within thirty (30) days after the
written notice of such default shall have been given to Tenant by Landlord.

     C.    Tenant or its agents shall falsify any report required to be
furnished to Landlord.

     D.    Tenant of this Agreement shall become bankrupt or insolvent or file
any debtor proceedings or have taken against such party in any court pursuant to
state or federal statute, a petition in bankruptcy or insolvency,
reorganization, or appointment of a receiver or trustee; and such proceeding
shall not be dismissed, discontinued or vacated within thirty (30) days from the
filing or appointment, or Tenant petitions for or enters into an arrangement; or
suffers this Lease to be taken under writ of restitution.

     E.    The doing, or permitting to be done, by Tenant of any act which
creates a mechanic's lien or claim against the land or building of which the
Subject Property are a part if not released or otherwise provided for by
indemnification satisfactory to Landlord within thirty (30) days thereafter; and

     5.02. Remedies. Upon the occurrence of the events set forth in Section
5.01, Landlord shall have the option to take any or all of the following
actions, without further notice Or demand of any kind to Tenant or any other
person:

     A.    Immediately re-enter and remove all persons and property from the
Subject Property, storing said property in a public place, warehouse, or
elsewhere at the cost of, and for the account of, Tenant, all without service of
notice or resort to legal process and without being deemed guilty of or liable
in trespass. No such re-entry or taking possession of the Subject Property by
Landlord shall be construed as an election on its part to terminate this
Agreement unless a written notice of such intention is given by Landlord to
Tenant. No such action by Landlord shall be considered or construed to be a
forcible entry.

                                      -7-

<PAGE>

     B.    Should Landlord re-enter, as provided above, or should it take
possession pursuant to legal proceedings or pursuant to any notice provided for
by law, and whether or not it terminates this Agreement, it may make such
alterations and repairs as may be necessary in order to relet the subject
Property, and relet the same or any part for such term or terms (which may be
for a term extending beyond the term of this Agreement) and at such rentals and
upon such other terms and conditions as 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 from Tenant to Landlord; second, to the payment of any
costs and expenses of such reletting, including brokerage fees and attorney's
fees and costs of any alterations and repairs; third, to the payment of rent due
and unpaid, and the residue, if any, shall be held by Landlord and applied in
payment of future rents as the same may become due and payable. If such rentals
received from such reletting during any month be less than that to be paid
during such month by Tenant, Tenant shall pay any such deficiency to Landlord.
Such deficiency shall be calculated and paid monthly. No such re-entry and
reletting of the Subject Property by Landlord shall be construed as an election
on its part to terminate this Lease unless a written notice of such intention be
given to Tenant pursuant to subsection c., above. Notwithstanding any such
reletting without termination, Landlord may at any time thereafter elect to
terminate this Agreement for such previous breach. The remedies given to
Landlord in this Section 5.02 shall be in addition and supplemental to all other
rights or remedies which Landlord may have under laws then in force.

     C.    Collect by suit or otherwise each installment or rent or other sum as
it becomes due hereunder, or enforce, by suit or otherwise, any other term or
provision on the part of Tenant required to be kept or performed.

     D.    Terminate this Agreement by ten (10) days written notice to Tenant.
In the event of such termination, Tenant agrees to immediately surrender
possession of the Subject Property. Should Landlord terminate this Lease, it way
recover from Tenant all damages it may incur by reason of Tenant's breach,
including the cost of recovering the Subject Property, reasonable attorney's
fees, and the worth at the time of such termination of the excess, if any, of
the amount of rent and charges equivalent to rent reserved in this Agreement for
the remainder of the stated term over the then-reasonable rental value of the
Subject Property for the remainder of the stated term, all of which amounts
shall be immediately due and payable from Tenant to Landlord.

                           ARTICLE VI - MISCELLANEOUS

     6.01. Waiver. The waiver by Landlord of any breach of any term, covenants
or condition herein contained shall not be deemed to be a waiver of such term,
condition or covenant, or any subsequent breach of the same, or any other term,
covenant or condition herein contained. The subsequent acceptance of lease
payments hereunder by Landlord shall not be deemed to be a waiver of any
preceding breach by Tenant of any term, covenant or condition of this Agreement,
other than the failure of Tenant to pay the particular lease payment so
accepted, regardless of Landlord's knowledge of such preceding breach at the
time of acceptance of such lease payment. No covenant, term or condition of this
Lease shall be deemed to have been waived by Landlord unless such waiver be in
writing by Landlord.

                                      -8-

<PAGE>

     6.02. Entire Agreement. This Agreement contains the entire Agreement
between the parties, and no representations, inducements, promises or
agreements, oral or otherwise, between the parties not embodied herein shall be
of any force and effect.

     6.03. Force Majeure. In the event that either party hereto shall be delayed
or hindered in, or prevented from, the performance of any act required
hereunder, by reason of strikes, lockouts, labor trouble, inability to procure
materials, failure of power, restrictive governmental laws or regulations,
riots, insurrections, war, natural disaster, or other reason of a like nature,
not the fault of the party delayed in performing work or doing acts required
under the term of this Agreement, then performance of such act shall be excused
for the period of the delay, and the period for the performance of any such act
shall be extended for a period equivalent to the period of such delay. The
provisions of this paragraph shall not operate to excuse Lessee from payment of
any lease payment, additional lease payment or other payments required by the
terms of this Agreement.

     6.04. Delivery of Subject Property. Tenant agrees to deliver LIP the
Subject Property to Landlord at the expiration of this Agreement in as good a
condition as when the same was entered into by Tenant, reasonable wear and tear
excepted.

     6.05. Default. If either party defaults in any of the Covenants or
agreements contained herein, the defaulting party shall pay all Costs and
expenses, including a reasonable attorney's fee, incurred by the other party in
enforcing its rights arising under this Agreement.

     6.06. Notices. Any notices sent to the parties may be sent to them at the
following addresses by certified or registered mail:

           Landlord,         Freeport Center Associates
                             P.O. Box 132S
                             Clearfield, Utah 84016

           Tenant:           ProForm Fitness Products, Inc.
                             Attn: Chief Financial Officer
                             1500 South 1000 West
                             Logan, Utah 84321

     6.07. Headings and Paragraph Numbers. Headings and paragraph numbers have
been inserted solely for convenience and reference and shall not be construed to
effect the meaning, construction of effect of this Agreement.

     6.08. Invalid Provision. If any provisions of this Agreement shall be
determined to be void or unenforceable, such determination `shall not effect the
validity of any remaining portion of this Agreement, and any remaining portion
shall remain in full force and effect as if this Agreement had been executed
with the invalid portion eliminated.

                                      -9-

<PAGE>

     6.09. Binding. This Agreement shall be binding upon and inure to the
benefit of the parties hereto, their heirs, agents, successors-in- interest,
assigns and transferees.

     6.10. Governing Law. The terms and conditions of this Agreement shall be
governed according to the laws of the State Of Utah.

     6.11. Authority of Signatories. Each person executing this Agreement
individually and personally represents and warrants that he is duly authorized
to execute and deliver the same on behalf 6f the entity for which he is signing
(whether it be a corporation, general or limited partnership, or otherwise), and
that this Agreement is binding upon said entity in accordance with its terms.
See Rider 7.

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the date first hereinabove written.

                                        LANDLORD:

                                        FREEPORT CENTER ASSOCIATES

                                        By        /s/ ILLEGIBLE
                                           -------------------------------------
                                           Its       [ILLEGIBLE]
                                              ----------------------------------

                                        TENANT:

                                        PROFORM FITNESS PRODUCTS, INC.

                                        By         /s/ S. Fred Beck
                                           -------------------------------------
                                           Its _________________________________

                                      -10-

<PAGE>

                             EXHIBIT "A" - PREMISES

     50,400 square feet of floor space, more or less, in Building Number M-11
together with the underlying and immediately adjacent land and such use of the
surrounding walls and roof as may be necessary for use of the space for the
purposes herein set out, such land and building being more completely delineated
on a map entitled "General Plan, Conditions as of June 1988" attached hereto as
Exhibit "B", and made a part hereof, and the location of such floor space within
such building being more completely delineated on a drawing entitled Building
M-11, attached hereto as Exhibit "C" and made a part hereof.

     Together with the necessary rights of ingress and egress and the right to
use in common with other, all of the roadways serving the above described
buildings to the extent necessary to enable the Tenant to utilize the property
for the purposes herein set forth.

                                      -11-

<PAGE>

                                   EXHIBIT "B"

                                [GRAPHIC OMITTED]

                                      -12-

<PAGE>

                                   EXHIBIT "C"

                                [GRAPHIC OMITTED]

                                      -13-

<PAGE>

                                     Rider 1

     PAYMENT OF CERTAIN INCREASES IN PROPERTY TAXES, UTILITIES AND INSURANCE:

     PAYMENT OF TAXES AND UTILITIES: Tenant shall pay its pro rata share of all
property increases tax (on land and improvements) over and above the 1994 base
year taxes, and all charges for public utilities including water and sewer used
on the leased premises. Landlord shall pay the 1994 taxes (1994 Base Year Tax)
for the term of this lease or extensions. Tenant shall be required to pay the
increase, if any, over the 1994 Tax Base amount. Landlord will provide Tenant
with a complete computation of property taxes including a pro ration by the
Davis County Assessor and assessments on the premises and within thirty (30)
days thereafter Tenant will pay to Landlord such amount as is due! to the taxing
authorities for the premises. Provided, however, that Tenant shall not be
required to pay Landlord until fifteen (15) days from the date which taxes are
due, that date being November 30, of each year.

     Real property taxes include all assessments and other governmental levies,
ordinary and extraordinary, foreseen and unforeseen, which are assessed or
imposed upon the premises or become payable during the term of this Lease.
Landlord warrants that as of the date this Lease is executed there are no
special assessments taxed or imposed against the premises.

     All amounts payable by Tenant under the provisions of this Paragraph shall
be prorated during the first and last years of this Lease on the basis of a
360-day year, 30 days allocated to each month.

     The Tenant shall also have the right at its own cost and expense, and for
its sole benefit, to initiate and prosecute any proceedings permitted by law for
the purpose of obtaining an abatement of or otherwise contesting the validity or
amount of taxes assessed to or levied upon the demised premises and required to
be paid by the Tenant and to defend any claims for lien that may be asserted
against Landlord's estate, and, if required by law, the Tenant may take such
action in the name of the Landlord who shall cooperate with the Tenant to such
extent as the Tenant may reasonably require, to the end that such proceedings
may be brought to a successful conclusion; provided, however, that the Tenant
shall fully indemnify and save the landlord harmless for all loss, cost, damage
and expense incurred by or to incurred or suffered by the Landlord in the
premised arising out of such tax protest.

     PAYMENT OF INSURANCE Tenant shall also pay to Landlord any amount by which
the property insurance premiums allocable to the demised premises for any year
during the term of this Lease exceed the annual premium of $270.56 presently
paid by Landlord for the demised premises prior to Tenant's occupancy. In
determining whether increased premiums are allocable to the demised premises,
any schedules `or rating procedures, as well as general rate increases, as
determined by the Organization issuing the insurance shall be conclusive
evidence of the several items and charges which make up the insurance rates and
premiums on the demised premises. Landlord will provid6 Tenant with a complete
computation of the premium increase on the demised premises and within thirty
(30) days thereafter Tenant will pay Landlord the insurance premium increase as
set forth in the computation.

                                      -14-

<PAGE>

     C.  If this Lease is terminated at other than the end of a calendar year,
all amounts payable by Tenant to Landlord under the provisions of this paragraph
shall be prorated an the basis of a 360-day year, 30 days allocated to each
month.

                                     Rider 2

     CONDITION OF THE PREMISES: Tenant has inspected the demised premises
including all equipment which is a part thereof and accepts the premises in the
condition they are in at the time of the commencement of the term of this Lease
without any representation express or implied on the part of Landlord or its
agents as to the condition of the premises, or suitability of the premises for
Tenant's use.

                                     Rider 3

     COMPLIANCE WITH GOVERNMENTAL REQUIREMENTS: Tenant shall, at Tenant's own
expense, comply with all laws, ordinances, regulations or orders of any federal,
state, country, municipal or other public authority affecting the Tenant's use
of the premises promptly correcting any non-compliance upon discovery thereof
and Landlord hereby consents to any action reasonably taken by Tenant to correct
such non-compliance. Tenant will not commit any waste on the premises nor permit
any obnoxious odors or noise to emanate from the premises, nor shall it
knowingly use or permit the use of the premises in violation of any present or
future law, rule or regulation of the United States or of the State of Utah, or
in violation of any country or municipal ordinance or regulation applicable
thereto.

                                     Rider 4

     INDEMNIFICATION: Tenant shall pay and shall indemnify and hold harmless
from and against any and all liabilities, fines, losses, damages, costs
(including attorney's fees and expenses) causes of action, claims or judgments
of any nature whatsoever, unless due to the negligence or willful misconduct of
Landlord or its principals, employees or agents, in connections with any and all
of the following:

     (a) any injury to, or the death of, any person on the premises or upon
adjoining streets or walks, or in any way related to Tenant's use or occupancy
of the premises:

     (b) any theft of or damage to or destruction of goods, wares, merchandise
and all other property of Tenant or others located on the premises or arising
from Tenant's use of the premises;

     (c) any negligent, careless or willful act of Tenant or any of its agents,
Contractors, servants, employees, assigns or subtenants, licensees or invitees,
if any;

     (d) any violation by Tenant of any covenant, restriction, agreement or
condition of this Lease; violation by Tenant of any contract or agreement to
which Tenant is a party relating to Tenant's

                                      -15-

<PAGE>

use of the premises, or violation by Tenant of any restriction, law, ordinance
or regulation affecting the premises of any part thereof including the occupancy
of use thereof.

Each of these indemnifications shall survive the expiration of termination of
this Lease.

                                     Rider 5

     AUTOMATIC SPRINKLER SYSTEM: Landlord agrees to maintain the Automatic
Sprinkler System to conform with the requirements of the Utah Fire Rating Bureau
for grading the building as any Automatic Sprinklered Building. Tenant agrees to
repair any damage to this system arising out of its occupancy, and to hold
Landlord free and harmless from damage to or destruction of any and all property
resulting from leakage of said Automatic Sprinkler System, during the term of
this Lease or any extension thereof, or any holdover occupancy.

     GLASS: Tenant agrees to immediately replace all glass broken or damaged
during the term of this Lease with glass of the same quality as that broken or
damaged.

     LIGHTS ON EXTERIOR OR BUILDING: Tenant shall burn the lights affixed to the
exterior of any building it occupies from one (1) hour after sunset to one (1)
hour before sunrise nightly.

                                     Rider 6

     Tenant and Landlord hereby mutually release and waive their entire right of
recovery against the other party for any and all loss or damage to the
improvements, all personal property of Tenant, and any installation, betterments
or improvements added to the building by Tenant, where such loss is occasioned,
caused or incurred by, or results from fire, windstorm, hail, explosion, riot
attending strike, civil commotion, aircraft, vehicles, smoke and vandalism and
all other perils which are insurable against, whether said loss occurred or was
caused by the negligence of the Tenant or Landlord, their agents, servants,
employees, sublessees or concessionaires, or otherwise. Landlord and Tenant each
further warrant that insurance companies insuring Landlord or Tenant shall have
no rights against the other, whether by assignments, subrogation or otherwise.
Willful misconduct of a criminal nature lawfully attributable to either party
shall to the extent that said conduct contributes to loss or damage not be
excused under this Paragraph.

                                     Rider 7

     LIMITATION OF LANDLORD'S LIABILITY: The obligations of Landlord under this
Lease do not constitute personal obligations of the individual partners of
Landlord and Tenant shall look solely to the real estate that is the subject of
this Lease and to no other assets of the Landlord for satisfaction of any
liability in respect of this Lease and will not seek recourse against the
individual partners of Landlord or any of their personal assets for such
satisfaction.

     SUBORDINATION OF LEASE TO MORTGAGES ON THE DEMISED PREMISES: This Lease
shall be subject and subordinate to any mortgage (or trust deed) now existing or
hereafter placed on the demised premises given to secure a loan made by a lender
to Landlord, and to any renewals, replacements, extensions or consolidations
thereof, which shall contain a provision that, so long as

                                      -16-

<PAGE>

Tenant shall not be in default in the performance of its obligations under this
Lease in such manner and after such notice as would entitle Landlord to
terminate this lease, the holder of such mortgage shall not disturb the
possession of Tenant or terminate this Lease.

                                      -17-

<PAGE>

                                                     Building M-11
                                                     Amendment
                                                     Term: 11/01/95 - 9/30/99
                                                     Month to Month Thereafter

                               AMENDMENT TO LEASE

     This Amendment to lease is made and entered into this 12th day of October,
1995 by and between FREEPORT CENTER ASSOCIATES, hereinafter called "Landlord"
and ICON HEALTH & FITNESS, hereinafter called "Tenant."

                               W I T N E S S E T H

     In consideration of the covenants and agreements of the respective parties
herein contained, the parties hereto do hereby agree as follows:

                             BACKGROUND INFORMATION

     WHEREAS, Landlord and Tenant have executed a Lease dated Oct. 1, 1994
affecting certain real property in the City of Clearfield, County of Davis,
State of Utah, known as Building M-11 and

     WHEREAS, Tenant desires to have certain improvements and modifications made
to the demised premises by Landlord, and Landlord is willing to contact for
construction of certain improvements and modifications. Tenant agrees to repay
Landlord for the contracted improvements in the form of higher rental payments
over a 47 month term commencing November 1, 1995 and ending September 30, 1999.

     THEREFORE, for valuable consideration, the receipt of which is acknowledged
by both parties, the parties hereto agree that the above described lease is
amended as follows:

     A. A new Paragraph 1.04 B entitled ADDITIONAL RENT FOR 1995 IMPROVEMENTS is
added to the existing Paragraph 1.04 of the Lease to read in its entirety as
follows:

                                      -18-

<PAGE>

     1.04.B. ADDITIONAL RENT FOR 1995 IMPROVEMENTS: Tenant also agrees to pay as
ADDITIONAL RENT to Landlord at the office of Landlord, Clearfield, Utah, or at
such other place as Landlord may from time to time designate over the term of
the Lease as ADDITIONAL RENT of $505 per month calculated as follows:

                        Paving North End of Building M-11

     Cost:                                                      $24,734
     Less: Landlord's Participation                               6,956
                                                                -------
     Cost to be Amortized                                       $17,778

     AMORTIZATION:
           Principle Amount                                     $17,778
           Term:                                              47 months
                                                    (11/01/95 - 9/30/99)
           Interest Rate                                            9.5%
           Monthly Payment                                      $   455

           B.  A new Exhibit "E" shall be added to the Lease. Said Exhibit "E"
consists of a proposal from Jack B. Parson Companies and is a proposal/contract
and description of the work to be performed.

     Except for the foregoing, all the terms and conditions of the existing
lease shall remain in full force and effect.

     IN WITNESS WHEREOF, the parties have caused this instrument to be executed
the day and year first above written.

TENANT:                                     LANDLORD:

ICON HEALTH & FITNESS                       FREEPORT CENTER ASSOCIATES

By         /s/ ILLEGIBLE                    By       /s/ ILLEGIBLE
   ----------------------------------           --------------------------------
Its        Sr. V.P. of Mfg.                 Its         [ILLEGIBLE]
    ---------------------------------           --------------------------------

                                      -19-

<PAGE>

                                                                     EXHIBIT "E"

July 15, 1994

Freeport Center
Attn: Steve Barrett
P.O. Box 1325
Clearfield, UT 84016

RE:   Building M-11 East/Parking Area

Dear Steve:

Big-D Construction proposes to furnish all material, labor, equipment, and
supervision necessary to complete the following:

     .    Finish grade area east of Building M-11 (Approximately 380' x 150')
     .    Curb wall around landscape area
     .    Install 6" engineered fill and compact
     .    Install 3" asphalt
     .    Stripe lot with 154 stalls

          TOTAL BID AMOUNT:               $60, 500.00
                                          -----------

Alternate #1      Provide Items 1, 2, and 3 only from above scope of work

                  TOTAL    $24,225.00

I appreciate the opportunity to work with you. Please feel free to give me a
call if I can be of any further assistance.

if you agree with the above scope of work, please sign and return for
contractor's signature. The original copy will then be sent back to you.

FREEPORT CENTER                          BIG-D CONSTRUCTION
Owner                                    Contractor

By:  __________________________          By:  __________________________
       Signature                                Signature

                                          Mark Wayment, Project Manager
_______________________________          -------------------------------
Printed Name & Title                     Printed Name & Title

                                      -20-

<PAGE>

July 15, 1994

Freeport Center
Attn: Steve Barrett
P.O. Box 1325
Clearfield, UT 84016

RE:  Building M-11 East

Dear Steve:

Big-D Construction proposes to furnish all material, labor, equipment, and
supervision necessary to complete the following:

     .    Provide civil, architectural, and structural drawings for project
     .    Site demolition includes all sawcutting of concrete, asphalt and curb
          and gutter
     .    Install storm drain system as per civil drawings
     .    Relocate fire hydrant to accommodate new truck ramp
     .    Pour foundation around existing tank pad to new size of 25' x 65' and
          new dock floor to foundation where needed
     .    Pour retaining walls on each side of new truck ramp
     .    Install slot drain at bottom of truck ramp
     .    Pour 6" reinforced concrete ramp
     .    Repair curb & gutter to accommodate new layout
     .    Repair landscaping
     .    Install steel canopy 25' x 65' x 16' high with lighting
     .    Demo door openings and structurally support to accommodate new 12' x
          11' rollup doors (two each)
     .    Provide and install four each dock levelors
     .    Site safety and cleanup

                          TOTAL BID AMOUNT: $167,312.00
                                            -----------

I appreciate the opportunity to work with you. Please feel free to give me a
call if I can be of any further assistance.

                                      -21-

<PAGE>

if you agree with the above scope of work, please sign and return for
contractor's signature. The original copy will then be sent back to you.

FREEPORT CENTER                            BIG-D CONSTRUCTION
Owner                                      Contractor

By:  __________________________            By:  ____________________________
       Signature                                  Signature

                                             Mark Wayment, Project Manager
_______________________________            ---------------------------------
Printed Name & Title                       Printed Name & Title

                                      -22-

<PAGE>

                                ESTIMATE SUMMARY

<TABLE>
<CAPTION>
Bid Sheet
M-11 Freeport Ctr.                       0 Sq. Ft.                Big-D Const.
Dock Mod.                                                         Prepared Mark Wayment

--------------------------------------------------------------------------------------------------
TRADE                              QUANTITY      MAT.      LABOR     EQUIP.      SUB      TOTAL

==================================================================================================
<S>                                <C>          <C>        <C>       <C>       <C>       <C>
General Conditions                                 321       3720      3440       160    $  7,641
Permits & Fees                                       0        186         0      2480    $  2,666
Arch. Fees                                           0          0         0      2240    $  2,240
Civil Eng. & Layout                                  0        273         0      2682    $  2,955
Site Demo                                           85        628       703      3255    $  4,671
Storm Drain                                          0          0         0      7210    $  7,210
Fire Hydrant                                         0          0         0      4488    $  4,488
Sawcut & Demo @ Dock                                85       1342      1160      6480    $  9,067
Excavation                          426 Yds.       115       1013       322         0    $  1,450
Foundation                          130'           399        891       162         0    $  1,452
Backfill                            91 Yds.         35        263       114         0    $    412
Dock Floor Patches                                 382        406       851         0    $  1,639
Retaining Wall                      184'           572        974       864         0    $  2,410
Slot Drain                          65'           2044       1135       322         0    $  3,501
Concrete Ramp                       6000'        11333       3792      1080         0    $ 16,205
Waterway R/R                        175'           312       1146       680       255    $  2,393
Curb & Gutter                                        0          0         0      1860    $  1,860
Landscaping                                          0          0         0      3740    $  3,740
Steel Canopy                        2080'        12748       5291      3417         0    $ 21,456
Struct. Steel Jamb                  4 Ea.         3520       1940       380         0    $  5,840
Sawcut Door Op.                     4 Ea.            0        382       185      2880    $  3,447
Sawcut Levelor P                    4 Ea.            0        486       316       912    $  1,714
Bollards                            8 Ea.          480        402       144         0    $  1,026
Asphalt Patch                                        0          0         0      1735    $  1,735
Painting                                             0          0         0      1936    $  1,936
O.H. Doors                          2 Ea.            0          0         0      5432    $  5,432
Dock Levelors                       4 Ea.            0        526       112      9264    $  9,902
Canopy Elect.                                        0          0         0      3360    $  3,360
Cleanup                                            160        418       224       240    $  1,042
--------------------------------------------------------------------------------------------------

Subtotal                                        32,591     25,214    14,476    60,609    $132,890
Bond (From Table)                                            0.00%                       $      0
Sales Tax                                         6.25%                                  $  2,037
Labor Burden                                                38.00%                       $  9,581
                                                                                         --------

Total Direct Costs                                                                       $144,508
Overhead & Profit                                           15.78%                       $ 22,803
              0                                              0.00%                       $      0
                                                                                         --------
TOTAL                                                                                    $167,312
</TABLE>

                                      -23-

<PAGE>

July 15, 1994

Freeport Center
Attn: Steve Barrett
P.O. Box 1325
Clearfield, UT 84016

RE:  Building M-11 East/Interior Work

Dear Steve:

Big-D Construction proposes to furnish all material, labor, equipment, and
supervision necessary to complete the following:

     .    Demo Mezzanine pit and red iron
     .    Infill Mezzanine floor flush with existing
     .    6" stud framing wall on west side of Mezzanine and drywall to finish
     .    Remove brick pavers and trough drains and pour concrete flush with
          existing
     .    Demo H.V.A.C. ducting in cooler room to ceiling height or
          approximately 10' and cap as needed
     .    Move and modify steel stairs as needed to install on east side of
          Mezzanine
     .    Site Safety and cleanup

          TOTAL BID AMOUNT:       $18,741.00
                                  ----------

I appreciate the opportunity to work with you. Please feel free to give me a
call if I can be of any further assistance.

if you agree with the above scope of work, please sign and return for
contractor's signature. The original copy will then be sent back to you.

FREEPORT CENTER                               BIG-D CONSTRUCTION
Owner                                         Contractor

By:  __________________________               By:  ___________________________
       Signature                                     Signature

_______________________________                 Mark Wayment, Project Manager
                                              --------------------------------
Printed Name & Title                          Printed Name & Title

                                      -24-

<PAGE>

                                ESTIMATE SUMMARY

<TABLE>
<CAPTION>
Bid Sheet
M-11 Freeport Ctr.                      0 Sq. Ft.
Interior Work                                                Prepared By:  Big-D Const.

----------------------------------------------------------------------------------------------
TRADE                             QUANTITY     MAT.     LABOR     EQUIP.     SUB      TOTAL

==============================================================================================
<S>                               <C>         <C>       <C>       <C>        <C>      <C>
General Conditions                               45        826       362        0     $ 1,233
Demo Mezz. Pit                                    0        601       318        0     $   919
Infill Mezz. Pit                                300        813       524        0     $ 1,637
Mezz. Flooring                                  425        744       315        0     $ 1,484
Mezz. Wall                                      210        341       105        0     $   656
Demo Elev Shaft                                  15        593       162        0     $   770
Railings                                       1154        605       213        0     $ 1,972
Demo & Concrete Paver Area                     1536       1131      1372        0     $ 4,039
Demo H.V.A.C. Duct                                0        506       123        0     $   629
Move & Modif. Stairs                            113        428        72        0     $   613
Misc. Patch/Repairs                              85        243        60        0     $   388
Site Cleanup & Safety                            30        206       110      132     $   478
----------------------------------------------------------------------------------------------

Subtotal                                      3,868      6,211     3,374      132     $13,585
Bond (From Table)                                         0.00%                       $     0
Sales Tax                                      6.25%                                  $   242
Labor Burden                                             38.00%                       $ 2,360
                                                                                      -------
Total Direct Costs                                                                    $16,187
Overhead & Profit                                        15.78%                       $ 2,554
            0                                             0.00%                       $     0
                                                                                      -------
TOTAL                                                                                 $18,741
</TABLE>

                                      -25-

<PAGE>

                       [Freeport Center Associates Header]

                                                           August 8, 1994

VIA FAX - (801) 753-0209

John White
Pro-Form

     Re: Incremental Increase for Paved Parking Lot

Dear Jon:

I think it would be prudent to pave the new parking lot, install curb and gutter
and do some modest landscaping along the west edge of the lot. The incremental
cost to do this is $36,275. I propose to split the cost equally with Pro-Form
for this increased expense.

Pro-Form's share, amortized over the 60 month lease term is $375 per month. If
you are in agreement, I would amend the lease to indicate this change.

Sincerely,

FREEPORT CENTER ASSOCIATES

  /s/ Stephen L. Barrett
---------------------------
Stephen L. Barrett
Director
Economic Development

                                      -26-

<PAGE>

                             [Jack B. Parson Header]

PROPOSAL            FREEPORT CENTER ASSOCIATES
SUBMITTED TO:       FREEPORT CENTER
                    CLEARFIELD, UTAH  84015

PROJECT:            ATTN: NORM

LOCATION

DESCRIPTION

JOB SPECIFICATION AND PRICE (If unit prices are quoted, units will be measured
on completion and ________ at these rates)

NORTH END BUILDING M-11

1.   Excavate as required to subgrade elevation
2.   Furnish, place and compact an eight inch crushed gravel base
3.   Furnish, place and compact a three inch asphalt mat

                                           Area Approx:        21,322 SF
                                           Unit Price of:      $1.16 per SF
                                           Approx. Total:      $24,734.00

                                   EXHIBIT "E"

We hereby propose to furnish labor and materials - complete in accordance with
the above specifications, for the sum of SAME AS ABOVE dollars
($______________), payment to be made as follows: Net due in 30 days following
date of Invoice. Including monthly payments equal to the evaluation of work
performed in any preceding month. INTEREST at the rate of _______% per month
will be charged on all past due accounts. This is an ANNUAL PERCENTAGE RATE OF

                                      -27-

<PAGE>

18%. Purchaser ______________________________________ becomes necessary to place
account for collection. All work to be completed in a workmanlike manner
according to standard practices. Any ___________ or deviation from above
specifies _____ invoke in extra cost, will be executed on ________ written
orders and will become an extra charge over and above the estimated.

THIS QUOTATION IS SUBJECT TO ALL THE TERMS AND CONDITIONS LISTED ON THE REVERSE
SIDE HEREOF, WHICH TERMS AND CONDITIONS ARE INCORPORATED HEREIN BY REFERENCE.

JACK B. PARSON COMPANIES                THE UNDERSIGNED HEREBY ACCEPTS THIS
                                        PROPOSAL INCLUDING ALL TERMS AND
                                        CONDITIONS THEREOF
By:      /s/ ILLEGIBLE
     ----------------------------
                                        ACCEPTED BY: __________________________
Dated:  OCT. 11, 1995
       --------------------------
                                        TITLE: ________________________________

                                        FOR: __________________________________

                                        DATE: _________________________________

                                      -28-<PAGE>

                                                                    Exhibit 10.8

                                  DEED OF LEASE

                                     BETWEEN
                                 INDOME 43 INC.

                                       AND

                               ICON OF CANADA INC.

<PAGE>

                                       2

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
Description                                                         Page Number
-----------                                                         -----------
<S>                                                                 <C>
1.    Description and Lease of Premise...........................          1
2.    Term of Lease..............................................          1
3.    Use of Premises............................................          2
4.    Net Rent...................................................          2
5.    Rent on Net Return Basis...................................          2
6.    Proportionate Expense Rental...............................          2
      a)   Taxes.................................................          2
      b)   Insurance.............................................          3
      c)   Other Expenses........................................          3
7     Lessee's Contribution......................................          4
8.    Taxes, Assessments, Etc....................................          4
9.    Lessee's Insurance.........................................          5
10.   Utilities and Heating......................................          5
11.   Maintenance and Repairs....................................          5
12.   Improvements and Alterations...............................          5
13.   Inspection and Repair......................................          6
14.   Furnish Statement..........................................          7
15.   Failure of Lessee to Perform...............................          7
16.   Default....................................................          7
17.   Liquidation Sales, Etc.....................................          8
18.   Expiration of Lease........................................          8
19.   Signs......................................................          9
20.   Subletting By Lessee.......................................          9
21.   Destruction of Premises....................................          9
22.   Compliance with Laws and Regulations.......................         10
23.   Indemnifications...........................................         11
24.   Assignment By Lessor.......................................         11
25.   Floor Loading..............................................         12
26.   Condition of Leased Premises...............................         12
27.   Occupancy..................................................         12
28.   Permits, Etc...............................................         12
29.   Rules and Regulations......................................         12
30.   Access.....................................................         12
31.   Access to Leased Premises..................................         12
32.   Inconvenience..............................................         13
33.   Expropriation..............................................         13
34.   Extensions and Location....................................         13
35.   Costs and Registration.....................................         14
36.   Collection.................................................         14
37.   Waiver.....................................................         14
38.   Notices....................................................         14
39.   Descriptive Headings.......................................         15
40.   Interpretation.............................................         15
41.   Option to Cancel...........................................         15
42.   Broker.....................................................         16
43.   Intervention...............................................         16
44.   Language...................................................         16
</TABLE>

<PAGE>

                                       1

                                  DEED OF LEASE

BETWEEN:       INDOME 43 INC., a body politic and corporate duly incorporated

               having it head office and principal place of business at 5165
               Sherbrooke St. West, Montreal, Province of Quebec hereinacting
               through and represented by James Lyng, its Secretary, pursuant to
               a resolution of the Board of Directors dated November 1st, 2000,
               a certified copy of which remains annexed hereto.

               (hereinafter called the "LESSOR")

AND:           ICON OF CANADA INC. a body politic and corporate duly
               incorporated having its head office and principal place at 900
               Boulevard de I'Industrie, St. Jerome, Quebec hereinacting through
               and represented by Mr. Richard Hebert, its president, pursuant to
               a resolution of the Board of Directors dated November 1st, 2000 a
               certified copy of which remains annexed hereto.

               hereinafter called the "LESSEE")

1.   DESCRIPTION AND LEASE OF PREMISES.

     Lessor, in consideration of the rent, covenants and agreements hereinafter
     contained on the part of Lessee to be paid, kept and performed, hereby
     leases to Lessee and Lessee does hereby accept form Lessor those certain
     premises being the entire Building situated at 500 Lajeunesse West, St.
     Jerome, Quebec (the "Building) consisting of approximately 105,984 square
     feet and the land both of which are outlined in red on a plan annexed
     hereto as Schedule 1 hereof to form part hereof (hereinafter referred to as
     the "Leased Premises") erected upon those certain parcels of land (the
     "Land") known as parts of lots 488, 489, of the Cadastre of the Village of
     St. Jerome and of the cadastre of the Parish of St. Jerome, more
     specifically described in Schedule 2 attached hereto.

2.   TERM OF LEASE

     The term of this Lease shall be for a period of five (5) years and shall
     commence on the 1st day of June, 2001 and terminate on the 31st day of May,
     2006 unless sooner terminated under the provisions hereof.

     Should the Lessee continue to occupy the Leased Premises after the expiry
     of the Term without either a written agreement, or a validly exercised
     option r written extension, there shall be no tacit renewal and the Lessee
     shall pay the Lessor rent and other charges for the period of occupancy as
     set out in the Lease or renewal thereof, plus fifty percent (50%) thereof,
     without prejudice to such further damage claims as may be available to the
     Lessor against the Lessee. However, the Lessee is not to have the right to
     such occupancy beyond the expiry of the term.

3.   USE OF PREMISES

<PAGE>

                                       2

     Lessee covenants that the Leased Premises shall be used solely for the
     purpose of light manufacturing and warehousing of products manufactured by
     Lessee and offices related thereto.

4.   NET RENT

     Lessee covenants and agrees to pay the Lessor in lawful money of Canada
     without deduction, abatement or set off, the sum of One Million Eight
     Hundred Fifty Four Thousand Seven Hundred and Twenty Dollars ($1,854,720)
     for the period June 1, 2001 to May 31, 2006, on a net, net basis payable in
     equal, consecutive, monthly installments each in advance on the first day
     of each month during the term hereof ($30,912.00 per month) (the "Base
     Rental").

     The rent as herein provided shall be paid to Lessor and/or its nominee at
     the head office of the Lessor, situated at the address in the heading
     hereof or at such other place in Canada as shall be designated by Lessor in
     writing to Lessee. The Leased Premises shall be deemed to be composed of
     the square footage herein stipulated notwithstanding any possible
     calculation to the contrary.

5.   RENT ON NET RETURN BASIS

     It is intended that the rent provided for in this Lease shall be an
     absolute net return to Lessor for the term of this Lease, regardless of the
     condition of the Leased Premises, free of any and all costs, expenses of
     any nature whatsoever save as herein provided, taxes and charges with
     respect to the Leased Premises, other than any income or profit taxes which
     may be levied against Lessor and any interest or amortization charges of
     Lessor in respect of mortgages or hypothecs.

6.   PROPORTIONATE EXPENSE RENTAL

     Without limiting the obligations of the Lessee, the Lessee shall pay during
     the Term of this Lease, as additional rental to the Lessor, One Hundred
     Percent (100%) of the aggregate of the following (adjusted in the first and
     last year of the term) hereinafter referred to as the Lessee's
     ("Proportionate Share").

     a)   TAXES

     The Lessee shall pay, whether they be special or general, its Proportionate
     Share of all taxes, surtaxes, taxes on non-residential immoveables,
     property taxes, municipal taxes, school taxes, water and business taxes,
     rates including local improvement rates, charges, duties and assessments,
     which are now or which may ever be levied against the Building and Land or
     the revenues therefrom, against the Lessor for the Leased Premises and all
     equipment and facilities thereon or therein, and/or any property on or in
     the Building owned or brought thereon or therein by Lessor or Lessee, and
     any and every of its assignees or sublessees and its and their respective
     officers, agents, employees, servants, visitors or licensees and/or against
     Lessor or Lessee in respect thereof, whether such taxes, rates, duties or
     assessments are charged by a municipal, parliamentary, school, or any other
     body of competent jurisdiction as well as all reasonable expenses related
     to the contestation of any part of said charges and all other taxes no
     matter how issued in replacement of same.

     b)   INSURANCE

<PAGE>

                                       3

          The Lessee shall pay its Proportionate Share of all premiums with
          respect to insurance to be placed by Lessor and described as follows:

          i)        Fire extended Coverage and Malicious Damage insurance for
                    the full insurable value procurable at the time, of the
                    Building, its improvements and equipment and in addition
                    upon the full annual rental income thereof;

          ii)       Broad Boiler and Unfired Pressure Vessels insurance,
                    including Repair or Replacement and rental income coverages
                    in an amount reasonably satisfactory to the Lessor.

          iii)      Such other insurance as institutional lenders may require or
                    as it may be or may become customary for owners of property
                    to carry as respects loss of or damage to the Building
                    and/or Leased Premises or liability arising therefrom. The
                    aforesaid insurance premiums shall include an amount
                    reasonably determined as being equivalent to a fair premium
                    for the deductible portion of insurance policy in question,
                    provided that the total sum payable by the Lessee shall not
                    exceed the amount that would be payable by the Lessee shall
                    not exceed the amount that would be payable by the Lessee if
                    the insurance policy would not have any deductible portion.

                    Lessee will pay the amount of any increase in insurance
                    premiums on the whole of the building of which the Leased
                    Premises form part if such increase is caused by lessee's
                    operations in the Leased Premises. Lessee shall have the
                    right should it so desire to insure the Leased Premises with
                    respect to all of the aforegoing, naming the Lessor as the
                    beneficiary pursuant to said insurance in force and content
                    and amount with insurers acceptable to Lessor.

              c)   OTHER EXPENSES

              The Lessee shall pay al costs related to the maintenance and
              repair and reasonable replacement of the Building, structural
              repairs and/or replacements to the Building excluded, same to be
              the Lessor's responsibility, total replacement of the roof of the
              Building shall be considered a structural repair and Lessee shall
              without limitation be responsible for repairs and maintenance to
              the washrooms, corridors, parking, driveways, heating and
              air-conditioning equipment and services and all other equipment,
              and all facilities and services available at the commencement of
              the term or added or provided at any time thereafter, (should such
              services, etc. be and to the extent that they are available).
              Lessee shall not be responsible for the repairing of the exterior
              of the Building (windows and doors excluded), the roof, concrete
              repair work with respect to the existing cracks in the concrete
              slabs. Lessee accepts the Building in said state with no
              obligations of Lessor to repair same. Lessor shall not be
              obligated to maintain, repair or replace the asphalt; however
              Lessor shall, within a delay of thirty (30) days of signature of
              this Lease, weather permitting, make repairs of a minor nature to
              the asphalt, which repairs will be limited to patching, as
              required.

              The Lessee shall not be responsible for repairs to the roof. The
              Lessee shall not be responsible for the repairs to the electrical
              transformer at the exterior of the Building. The Lessee shall not
              be responsible for the maintenance of the water pipes leading

<PAGE>

                                       4

     up to the plant. Lessee shall be responsible for all repairs due to damages
     caused to the Building and property by the Lessee, or by anyone acting on
     behalf of the Lessee. This would include vandalism of any nature.

     The Lessee shall provide winter and summer exterior ground maintenance.

7.   LESSEE'S CONTRIBUTION

     Notwithstanding anything to the contrary hereinabove contained, the Lessor
     may, instead of billing individually for taxes and other items to be paid
     by the Lessee, as hereinabove stipulated, estimate the amounts payable by
     the Lessee under the provisions of this Lease for such periods as the
     Lessor may determine (but not exceeding twelve months) the Lessee hereby
     agreeing to pay to the Lessor such amounts in monthly installments in
     advance during the said period together with the rental payments as
     hereinabove provided. Following the expiration of the period for which such
     estimated payments have been made, the Lessor shall deliver to the Lessee a
     statement of the actual costs payable pursuant to clause 6. If the amounts
     actually due by the Lessee for such period exceed the amount so collected
     by the Lessor, the Lessee shall pay same forthwith upon receipt of such
     statements, and if the amounts due by the Lessee for the said period are
     less than the amount actually collected by the Lessor, then the Lessor may
     remit same forthwith or credit same to the next ensuing payments becoming
     due by the Lessee to the Lessor.

     All sums due by the Lessee to the Lessor in virtue of this Lease, whether
     under this clause or otherwise, will be considered as rent for all legal
     purposes.

8.   TAXES, ASSESSMENTS, ETC.

     Lessee will in each and every year during the Term of this Lease pay and
     discharge or cause to be paid and discharged, all license fees, public
     utility charges, water rates, sewer rates and other like fees, charges,
     rates and assessments that may be levied, charged, rated or assessed
     against the Leased Premises and/or all equipment and facilities thereon or
     therein, and/or any property on the Leased Premises owned or brought
     thereon by Lessor or Lessee, and any and every of its assignees or
     sublessees and its and their respective officers, agents, employees,
     servants, visitors or licensees and/or against Lessor or Lessee in respect
     thereof, and every tax and license fee in respect of any and every business
     carried on therein, or in respect of the occupancy of the Leased Premises
     by Lessee (and any and every of its assignees or sublessees) whether such
     license fee, charges, rates, assessments and taxes are charged by a
     municipal, parliamentary, school or any other body of competent
     jurisdiction, and all charges for public utilities including electric
     current, gas, water, steam or hot water used upon or in respect of the
     Leased Premises and for fitting, machines, apparatus, meters or other
     things leased in respect thereof, and for all work or services performed by
     any corporation or commission in connection with such utilities; and will
     indemnify, and keep indemnified Lessor from and against payment of all
     losses, costs, charges and expenses occasioned by or arising from any and
     every such license fee, charge, rate, assessment and tax. Lessee will
     furnish to Lessor within ten (10) days after the day on which the same
     become due and payable, receipts or other appropriate evidence as to the
     payment of each such tax, rate, charge, assessment, duty and license fee.

9.   LESSEE'S INSURANCE

<PAGE>

                                       5

     Lessee covenants that nothing will be done or omitted to be done whereby
     any policy shall be cancelled or the Leased Premises rendered uninsurable
     during the Term or any renewal thereof.

     The Lessee shall, at its expense, procure and maintain at all times during
     the continuance of this Lease such insurance as will protect the Lessee and
     the Lessor from any claim for personal injury including death, and for
     property damage in any way arising out of or attributable to the exercise
     by the Lessee, or others, of any of the privileges or rights herein
     granted. This insurance shall provided a combined minimum limit of
     $1,000,000 or such higher amount as Lessor may reasonably require for
     personal injury and property damage and shall extend to cover any liability
     assumed by the Lessee under this Lease. The Lessee shall forward to the
     Lessor the original of the insurance policy and evidence of renewal thereof
     during the continuance of this Lease. The Lessee hereby agrees and
     understands that the placing of such insurance shall in no way relieve the
     Lessee from any obligation assumed under this Lease, and that failure by
     the Lessee to remit to Lessor, within ten (10) days of demand proof of the
     above-mentioned coverage will entitle the Lessor to obtain said insurance
     and to charge Lessee for same.

10.  UTILITIES AND HEATING

     The lessee shall pay for all electricity, water, heat, gas telephone, pest
     control, garbage removal and all public utilities with respect to the
     Leased Premises, and shall keep the Leased Premises suitable heated.

11.  MAINTENANCE AND REPAIRS

     Subject to section 6.c) hereof and notwithstanding any provisions of
     articles 1854 and 1864 of the Civil Code of Quebec, the Lessee, at its own
     expense, shall operate maintain and keep the Leased Premises including all
     facilities, equipment and services, both inside and outside, as they would
     be kept by a careful owner and shall promptly make all needed repairs and
     replacements to the Leased Premises, which a careful owner would make,
     including, without limitations, the water, gas, drain and sewer
     connections, pipes and mains, electrical wiring, water closets, sinks and
     accessories thereof, and all equipment belonging to or connected with the
     Leased Premises or used in its operation.

     The Lessor may obtain of have the Lessee obtain and in either event the
     Lessee shall pay for such maintenance, repair and replacement services
     and/or insurance contracts as may be available from firms approved by the
     Lessor (such approval not to be unreasonably withheld), with respect to the
     maintenance, repair and replacement of the heating equipment,
     air-conditioning and sprinkler and alarm equipment, in the Leased Premises;
     the whole without prejudice to the other obligations of the Lessee with
     respect to such equipment. The Lessee shall forward to the Lessor copies of
     such contracts and evidence of renewals thereof during the continuance of
     this Lease. In the event any of said contracts apply to the entire
     Building, Lessee shall pay the Proportionate Share of the Lessee with
     respect to same.

12.  IMPROVEMENTS AND ALTERATIONS

     Lessee shall have the right to make at its own expense, with the prior
     written consent of the Lessor, whose consent may not be unreasonably
     withheld, additions,

<PAGE>

                                       6

     alterations and changes in and to the Leased Premises provided, however,
     that no such work shall be commenced except with the prior written consent
     of Lessor and except on compliance with the following conditions:

     a)   Lessee shall furnish to Lessor plans and specifications showing in
          reasonably complete detail the work proposed to be carried out and the
          estimated cost thereof and Lessor shall approve or reject such plans
          and specifications within thirty (30) days after receipt of same. If
          such plans and specifications are approved, all work shall be carried
          out in compliance with the same.

     b)   The value of the Leased Premises shall not, as a result of any work
          proposed to be carried out by Lessee, be less than the value of the
          Leased Premises before the commencement of such work and Lessor shall
          be the sole judge of such value.

     c)   All work shall be carried out with reasonable dispatch and in good
          workmanlike manner and in compliance with all applicable permits,
          authorization and building and zoning by-laws and with all regulations
          and requirements of all competent authorities having jurisdiction over
          the Leased Premises.

     d)   The Leased Premises shall at all times be free of all hypothecs or
          other encumbrances for work done, labor performed or materials
          furnish. Lessor may require Lessee to furnish security satisfactory to
          Lessor guaranteeing the completion of the work and the payment of the
          cost thereof free and clear of all hypothecs or other encumbrances, as
          well as for the replacement of the Leased Premises to their former
          state, as specified in Clause 21 below.

     e)   Lessee shall maintain such general liability insurance for the
          protection of Lessor and Lessee as Lessor may require and shall
          produce evidence of such insurance to Lessor.

     f)   All work, which is of permanent nature, when completed, shall be
          comprised in, and form part of the Leased Premises and shall be
          subject to all the provisions of this Lease and Lessee shall not have
          any right to claim compensation therefor and the same shall not be
          removed by Lessee on termination of this Lease, unless the parties
          have agreed otherwise in writing at the time of request for consent
          referred to in the first paragraph of the present section, in which
          case the Lessee shall comply and shall repair any damage related
          thereto or caused thereby.

     g)   Should the Lessee, after having obtained written consent from the
          Lessor, effect changes in the partitions or otherwise modify the
          Leased Premises and accordingly had to relocate or modify the heating
          and, if applicable, the air-conditioning equipment, such changes
          and/or modifications would have to be effected at the sole cost and
          risk of the Lessee.

13.  INSPECTION AND REPAIR

     Lessor and its agents shall have the right, at all reasonable times during
     the Term or any renewal thereof to enter the Leased Premises to examine the
     condition thereof and to ascertain whether Lessee is performing its
     obligations hereunder, and Lessee covenants to make any repair which Lessor
     deems necessary as a result of such

<PAGE>

                                       7

     examination. If Lessee fails to make any such repairs within thirty (30)
     days after notice from Lessor requesting Lessee so to do, provided that
     such repairs may reasonably be made within the said period, Lessor may,
     without prejudice to any other rights or remedies it may have, make such
     repairs and charge the Lessee for same but Lessor shall have the right at
     any time to make any emergency repairs without notice to Lessee and charge
     the cost thereof to Lessee. Any cost chargeable to Lessee hereunder shall
     be payable forthwith on demand as additional rent. Lessor will be entitled
     to request from Lessee a deposit or acceptable bank guarantee equivalent to
     the value of said needed repairs until Lessee completes them.

14.  FURNISH STATEMENT

     Lessee shall from time to time at the request of Lessor produce to Lessor
     satisfactory evidence of the due payment by Lessee of all payments required
     to be made by Lessee under this Lease.

15.  FAILURE OF LESSEE TO PERFORM

     If Lessee fails to pay any taxes, rates, insurance premiums, charges or
     debts which it owes or has herein covenanted to pay or has undertaken to
     contract, Lessor may pay or contract the same and shall be entitled to
     charge the sums so paid or contracted to Lessee who shall pay them
     forthwith on demand, as additional rent and Lessor, in addition to any
     other rights, shall have the same remedies and may take the same steps for
     the recovery of rent in arrears under the terms of this Lease; all arrears
     of rent and any monies paid by Lessor or due by Lessee to Lessor under this
     Lease, shall bear interest at the rate of 24% per annum or two percent (2%)
     per month from the time such arrears become due until paid to Lessor.
     Lessor may demand such sums from Lessee even before payment.

16.  DEFAULT

     Without prejudice to all of the rights and resources available to the
     Lessor, the following shall be considered special defaults under the terms
     of this Lease;

     a)   in the event that the Lessee shall be in default under any provision
          of this Lease providing for the payment of rent or additional rent and
          such default shall continue after the due date;

     b)   in the event that Lessee shall be adjudicated a bankrupt of make any
          general assignment for the benefit of creditors, or take, or attempt
          to take, the benefit of any insolvency or bankruptcy act, or if a
          petition in bankruptcy shall be granted against Lessee, or if a
          receiver or trustee be appointed for the property of Lessee, or any
          part thereof, or if any execution be issued pursuant to a judgement,
          rendered against Lessee or pursuant to this Lease, or if the estate of
          lessee hereunder be transferred or pass to or devolve upon any other
          person or corporation by operation of law; or if the Lessee abandons
          the Leased Premises of if they are vacant or unattended for more than
          ten (10) days, or occupied by persons other than the Lessee without
          Lessor's written consent; or

     c)   in the event that Lessee shall be in default in observing any covenant
          herein contained and/or performing any of its obligations contained in
          this Lease (other than a default in the payment of rent or additional
          rent) and such

<PAGE>

                                       8

          default shall continue for thirty (30) days after written notice
          specifying such default shall have been given to Lessee by Lessor.

     In the event of any special default under the terms of this Lease, the
     Lessor without prejudice to any other rights or remedies it may have
     hereunder or by law, shall have the right to resiliate this Lease forthwith
     upon written notice given to Lessee by Lessor and this notwithstanding any
     legislation to the contrary including without limitation Article 1863 of
     the Civil Code of Quebec. Lessee upon such a termination of this Lease
     shall thereupon quit and surrender the Leased Premises to Lessor and
     Lessor, its agents and servants, may immediately or at any time thereafter,
     re-enter the Leased Premises and dispossess Lessee, and remove any and all
     persons and any and all property therefrom and re-let the Lease Premises to
     whomsoever it may choose without further notice or demand being necessary.

     In case of any termination, or in case Lessee, in the absence of such
     termination shall be dispossessed by or at the instance of Lessor, in any
     lawful manner, whether by force or otherwise, rent for the then current
     month and for the three months next succeeding the date to such termination
     or dispossession shall immediately become due and payable (as accelerated
     rent) and this Lease shall immediately, at the option of the Lessor, become
     forfeited and terminated, and the Lessor may, without notice or any form of
     legal process, forthwith re-enter upon and take possession of the leased
     Premises and remove the Lessee's effects therefrom, the whole without
     prejudice to and under reserve of all of the rights and recourses of the
     Lessor to claim any and all losses and damages sustained by the Lessor by
     reason of and arising from any default of the Lessee.

17.  LIQUIDATION SALES, ETC.

     The Lessee undertakes not to carry out a permit a bankruptcy or liquidation
     sale or sale of second hand goods, war surplus goods, insurance salvage
     stock or auction in or from the Leased Premises. The Lessee acknowledges
     that a violation of the present clause will cause irreparable injury to the
     Lessor and consents to the Lessor enforcing the present clause by way of
     provisional and interlocutory injunction, without prejudice to such other
     rights as the Lessor may have under the circumstances.

18.  EXPIRATION OF LEASE
     -------------------

     The Lessee shall at the expiration or sooner termination of the Term of
     this Lease peaceably surrender and yield up unto Lessor the Leased Premises
     unless agreed otherwise to the contrary in writing by the parties, together
     with all buildings, alterations, replacements, additions, erections, and
     improvements (leasehold or otherwise) including, but not limited to main
     electrical installations, offices, partitions, divisions, showrooms, air
     conditioning and heating equipment, paneling, built-in furniture,
     wall-to-wall carpets, attached carpets or other floor coverings, wiring,
     switches, meters, meter boxes and transformers, which at any time during
     the Term hereof shall be placed, made, installed, fixed or attached therein
     or thereon for permanence by the Lessee, in good repair and condition,
     subject to reasonable wear and tear only, and without any compensation
     whatsoever being allowed to the Lessee for same. Lessee shall not remove or
     alter any of the foregoing during the Term of the Lease or renewal or
     extension thereof, without the written consent of the Lessor. However, the
     Lessor shall have the right to require the Lessee, prior to or after the
     termination of the Lease or any renewal or extension thereof, to remove any
     or all of

<PAGE>

                                       9

     the foregoing items, in which case the Lessee shall remove the items
     requested to be removed, repairing any damage related thereto or caused
     thereby, and to the extent required by the Lessor, the Lessee shall leave
     the Leased Premises in their original good and clean state and condition,
     subject to reasonable wear and tear. Notwithstanding anything herein,
     Lessee shall be entitled to remove all electrical installations which are
     auxiliary to its manufacturing equipment. Lessee shall in such case make
     the necessary repairs to the walls etc. to bring it back to its original
     state less normal wear and tear.

19.  SIGNS

     Lessor shall have the right at all times during the Term of this Lease to
     place upon the Leased Premises a notice of reasonable dimensions and
     reasonably placed, so as not to interfere with the business of Lessee,
     stating that the Leased Premises are for sale and for twelve (12) months
     prior to the termination of this Lease, Lessor shall have the right to
     place upon the Leased Premises a similar notice that the Leased Premises
     are for rent and Lessee shall not remove such notice or knowingly permit
     same to be removed.

     Lessor shall have the right to exhibit the Leased Premises from time to
     time to any insurer, prospective Mortgagee, purchaser or lessee at all
     reasonable hours.

     Any exterior signs or any signs visible from the exterior will be subject
     to the Lessor's reasonable approval in writing and installation if approved
     will be at the sole expense of the Lessee. All such signs shall comply with
     the lawful requirements of municipal and government authorities.

20.  SUBLETTING BY LESSEE

     Subject to the provisions hereinafter detailed, the Lessee shall have the
     right to sublet the whole or any part of the Leased Premises or assign its
     rights in the present Lease with consent of the Lessor which consent shall
     not be unreasonably withheld providing that the Leased Premises are
     utilized only for the purposes stipulated in Clause 3 hereof.
     Notwithstanding such subletting and assignment, the Lessee shall remain
     jointly and severally liable with such sublessee or assignee for the
     performance of all of the terms and conditions of the Lease.

     If the Lessee wishes to so sublet or assign, it must submit to the Lessor a
     copy of the offer to sublet or assign, together with a request for consent
     of the Lessor, and the Lessor shall have thirty (30) days form receipt
     thereof to advice the Lessee in writing that it consents to the sublease or
     assignment in question as sublessee at the same rental rate and other terms
     and conditions of this Lease or, at the Lessor's option, that it is
     canceling the Lease as of the effective commencement date of such offer to
     sublet or assign, or consent to the Sublease in question.

     However, should the Lessor not exercise its right to cancel this Lease, the
     Lessor shall not thereby be precluded from withholding its consent to the
     said sublet or assignment, provided said consent shall not be unreasonably
     withheld.

21.  DESTRUCTION OF PREMISES

     Provided, and it is hereby expressly agreed that if and whenever during the
     Term or any renewal thereof, the Building or the Leased Premises shall be
     destroyed or

<PAGE>

                                       10

     damaged by fire, lightening or tempest, or any of the other perils insured
     against under the provisions of Clause 6 paragraph b, then and in every
     such event:

     a)   If the damage or destruction is such that the Leased Premises, or the
          Building, is rendered wholly or partially unfit for occupancy or it is
          impossible or unsafe to use and occupy them or it, as the case may be,
          and if in either event the damage, in the opinion of Lessor, notice to
          be given to Lessee within thirty (30) days of the happening of such
          damage or destruction, the Leased Premises or Building cannot be
          repaired with reasonable diligence within one hundred and eighty (180)
          days from the happening of such damage or destruction, then either
          Lessor or Lessee may within five (5) days next succeeding the giving
          of the Lessor'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 shall cease and be at an end as of the date of
          such destruction or damage and the rent and all other payments for
          which Lessee is liable under the terms of this Lease shall be
          apportioned and paid in full to the date of such destruction or
          damage; in the event that neither Lessor or Lessee so terminate this
          Lease, the Lessor shall repair the Leased Premises or Building with
          all reasonable speed and the rent hereby reserved shall abate from the
          date of the happening of the damage until the damage shall be made
          good to the extent of enabling Lessee to use and occupy the Leased
          Premises.

     b)   If the damage be such that the Leased Premises or the Building are
          wholly unfit for occupancy, or if it is impossible or unsafe to use or
          occupy the Leased Premises but if in either event the damage, in the
          opinion of Lessor, notice to be given to Lessee within thirty (30)
          days from the happening of such damage, the Leased Premises or
          Building can be repaired with reasonable diligence within one hundred
          and eighty (180) days of the happening of such damage, then the rent
          reserved shall abate from the date of the happening of such damage
          until the damage shall be made good to the extent of enabling Lessee
          to sue and occupy the Leased Premises and Lessor shall repair the
          damage with all reasonable speed.

     c)   If, in the opinion of the Lessor, the damage can be made good, as
          aforesaid, within one hundred and eighty (180) 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 purposes for
          which they are hereby leased, then until such damage has been repaired
          the rent shall abate in the proportion that the part of the Leased
          Premises which is rendered unfit for occupancy bears to the whole of
          the leased Premises and Lessor shall repair the damage with all
          reasonable speed.

          Should any mortgage creditor who may have an interest in any insurance
          proceeds refuse to permit the use of such proceeds for the repair,
          replacement, rebuilding and/or restoration as hereinabove provided and
          for the payment of amounts expended for such purposes, then the
          Lessor's obligation to repair or rebuild as provided for hereinabove
          shall cease and shall be null and void and the Lease shall be
          cancelled effective as of the date of the damage, unless, the Lessor,
          at the Lessor's sole option, chooses to repair or rebuild.

22.  COMPLIANCE WITH LAWS AND REGULATIONS

<PAGE>

                                       11

     The Lessee shall, at its own expense, promptly comply with the requirements
     of every applicable statute, law and ordonnance and with every applicable
     regulation or order with respect to the removal of any encroachment placed
     by the Lessee, or to the condition, equipment, maintenance, or use or
     occupation of the leased Premises, including the making of any alteration,
     addition in or to any structure upon connected with or appurtenant to the
     Leased Premises, whether or not such alterations be structural or be
     required on account of any particular use to which the Lease Premises or
     part thereof may be put and whether or not such requirement, regulation or
     order be of a kind now existing or within the contemplation of the parties
     hereto; and shall comply with any applicable regulation, recommendation or
     order of the Canadian Fire Underwriters' Association, or any body having
     similar functions or of any liability or fire insurance company by which
     the Lessor and/or the Lessee may be insured.

23.  INDEMNIFICATIONS

     Except if caused directly by the gross negligence of the Lessor, the Lessor
     shall not be liable nor responsible in any way for any injury of any nature
     whatsoever that may be suffered or sustained by the Lessee or any employee,
     agent or customer of the Lessee or any other person who may be upon the
     Leased Premises or for any loss of or damages to any property belonging to
     the Lessee or to its employees or to any other person while such property
     is on the Leased Premises and in particular (but without limiting the
     generality of the foregoing) the Lessor shall not be liable for any damage
     or damages of any nature whatsoever to any such property caused by the
     failure by reason of a breakdown or other cause, to supply adequate
     drainage, snow or ice removal, or by reason of the interruption of any
     public utility or service or in the event of steam, water, rain or snow
     which may leak into, issue, or flow from any part of the Building or from
     the water, steam, sprinkler, or drainage pipes or plumbing works of the
     same, or from any other place or quarter or for any damage caused by
     anything done or omitted by any lessee, but the Lessor shall use all
     reasonable diligence to remedy such condition, failure or interruption of
     service when not directly or indirectly attributable to the Lessee, after
     notice of same, when it is within its power and obligation so to do. Nor
     shall the Lessee be entitled to any abatement of rental in respect of any
     such condition, failure or interruption of service.

     The Lessee will indemnify and save harmless the Lessor from and against all
     fines, liability, damages, suits, claims, demands and actions of any kind
     or nature which the Lessor shall or may become liable for or suffer by
     reason of any breach, violation or non-performance by the Lessee of any
     covenant, term or provision hereof or by reason of any injury (including
     death resulting at any time therefrom) or damage to property occasioned to
     or suffered by any person or persons including the Lessor by reason of any
     such breach, violation or non-performance or of any wrongful act, neglect
     or default on the part of the Lessee or any of its employees, officers,
     agents, suppliers, or invitees.

24.  ASSIGNMENT BY LESSOR

     Lessee hereby covenants and agrees to execute and deliver, at any time and
     from time to time upon the request of the Lessor at Lessor's expense,
     consent to and become a party to any instrument or instruments permitting a
     mortgage or hypothec to be placed on the Building or any part thereof of
     which the Leased Premises are a

<PAGE>

                                       12

     part as security for any indebtedness covered by the said mortgage or
     hypothec and subordinating this Lease to the said mortgage or hypothec.

25.  FLOOR LOADING

     Lessee shall not bring upon the Leased Premises or any part thereof any
     machinery, equipment, article or thing that by reason of its weight or size
     might damage the Leased Premises and will not at any time overload the
     floors of the Leased Premises and if any damage is caused to the Leased
     Premises by any machinery, equipment, article or thing or by overloading or
     by any act, neglect or misuse on the part of Lessee or any of its invitees,
     agents or employees or any person having business with Lessee, Lessee will
     forthwith pay to Lessor the cost of making good the same.

26.  CONDITION OF LEASED PREMISES

     The Lessee represents that it has examined and viewed the Leased Premises
     and accepts same in their present condition.

27.  OCCUPANCY

     If the Lessor is unable to give possession of the Leased Premises to the
     Lessee on the date of commencement of the Term by reason of the
     non-completion of construction, repairs, improvements, additions, or
     alterations to the Leased Premises, or the Building containing same, the
     Lease shall not be void or voidable nor shall the Lessor be liable for any
     loss or damage resulting therefrom. However, the rent payable hereunder
     shall abate until the Leased Premises are substantially completed.

28.  PERMITS, ETC.

     The Lessee shall obtain all necessary permits and licences required for the
     occupancy any carrying on of its business, the Lessor making no warranties
     whatsoever regarding zoning, permits and licences which may be required by
     the Lessee. Should the Lessee fail to obtain any required permit and/or
     licence, it shall remain bound to perform its obligations under the present
     Lease.

29.  RULES AND REGULATIONS

     The Lessor shall have the right to make reasonable rules and regulations as
     in its discretion may from time to time be needful for the safety, care,
     cleanliness and proper administration of the Building including the Leased
     Premises, and for the preservation of good order therein, and the same
     shall be observed and performed by the Lessee and by the clerks, servants,
     employees, agents, invitees and customers, of the Lessee, and all such
     rules and regulations now or hereafter to be established by the Lessor as
     herein provided shall form part of this Lease as though same had been set
     forth at length herein.

30.  ACCESS

     The Lessor shall have the right of access to the Leased Premises to perform
     such work as it chooses to do upon the Leased Premises, the Lessee
     renouncing any claim to any indemnity or diminution of rent provided the
     same be carried out with reasonable diligence.

31.  ACCESS TO LEASED PREMISES

<PAGE>

                                       13

     a)   The Lessee,  it employees,  agents,  customers will have access to the
          Leased Premises at all times.

     b)   Should the Lessee, its employees, agents and customers wish to use any
          land of the Lessor  adjacent to the Leased  Premises to enter or leave
          the  Leased  Premises,  they  undertake  to use at their  risk the way
          specifically  designated for such purpose by the Lessor,  and they may
          also use at their risk and in common  with  others,  the  parking  and
          shipping areas designated by the Lessor, if provided.

     c)   The Lessor reserves the right to change or relocate the said roadways,
          parking or shipping areas, at its convenience and in its sole
          discretion.

     d)   The Lessee will not use the said roadways, parking or shipping areas
          for any other purpose except for parking in the spaces designated or
          as access to the Leased Premises or shipping areas as designated by
          Lessor.

     e)   The Lessee, its employees, agents and customers may at their risk use,
          in common with others who will have obtained the permission of the
          Lessor all common corridors, stairways or vestibules of the Building
          providing access to the Leased Premises, if available, as well as all
          common parking and access roads to the Building.

     f)   The Lessor will with reasonable diligence maintain all such common
          access roads, parking areas, shipping areas, corridors, stairways,
          vestibules, or other common areas giving access to the Leased Premises
          and the Lessee will pay to the Lessor all such maintenance costs as
          provided for in Section 6, paragraph c) hereof.

32.  INCONVENIENCE

     The Lessee shall not hold the Lessor in any way responsible for any damages
     or annoyance which the Lessee may sustain through the fault of any lessee
     or lessees who occupy any leased premises adjacent to, near or above the
     Leased Premises, and not use the Leased Premises for any purpose,
     notwithstanding anything stated herein, which may cause noise, disturbance
     or noxious odour, to the discomfort of the other lessees and neighbours,
     and renounces to any claims it may have or acquire against the Lessor under
     Articles 1859 and 1861 of the Civil Code of Quebec.

33.  EXPROPRIATION
     -------------

     In the event that all or part of the Leased Premises are expropriated,
     which would prevent the use or occupation of the inside floor space of the
     Building (which forms the major part of the Leased Premises) in whole or in
     part, then he Lessee shall be entitled to a diminution of the rent payable
     hereunder during the period and for the area of eviction only. Such
     diminution of rent shall be reckoned from the date the Lessee is forced to
     vacate the said inside floor space and shall be calculated on a pro-rata
     basis, the whole without any other claims by the Lessee against the Lessor
     for any loss or damages occasioned by said eviction and/or loss of use.

34.  EXTENSIONS AND LOCATION
     -----------------------

     The Lessor shall have the right at its option and from time to time during
     the Term to make extensions and/or additions and/or to add one or more
     additional floors or storeys onto all or part of the Building comprising
     the Leased Premises.

<PAGE>

                                       14

                           [NO INFORMATION FOR PAGE]

<PAGE>

                                       15

     the Leased Premises, or, provided that there are no strikes or
     interruptions in the postal service, when mailed by prepaid registered mail
     to Lessee at the address of the Leased Premises.

     Lessee elects domicile at the Leased Premises for the purpose of service of
     all notices, writs of summons or other legal documents in any suit of law,
     action or proceeding which Lessor may take under the Lease.

     Any notice or demand given by Lessee to Lessor shall be deemed to be duly
     given when served upon Lessor personally or, provided that there are no
     strikes or interruptions in the postal service, when mailed by prepaid
     registered mail to Lessor at the address designated by Lessor for purposes
     of payment of the rent hereunder.

39.  DESCRIPTIVE HEADINGS.

     The descriptive headings of this Lease are inserted for convenience of
     reference only and in no way define, limit or enlarge the scope or meaning
     of this Lease or any provision thereof.

40   INTERPRETATION

     This Lease shall be construed and interpreted in accordance with the laws
     of the Province of Quebec. If for any reason whatsoever, any term,
     obligation or condition of this Lease or the application thereof to any
     person, firm or corporation or to any circumstances is to any extent held
     to be or is rendered invalid, unenforceable or illegal, then such term,
     obligation or condition shall be deemed to be independent of the remainder
     of this Lease and to be severable and divisible therefrom, and its
     invalidity, unenforceability or illegality shall not affect, impair or
     invalidate the remainder of this Lease or any part thereof and the
     remainder of this lease not affected, impaired or invalidated will continue
     to be applicable and enforceable to the fullest extent permitted by law
     against any person, firm or corporation and to any circumstances other than
     those as to which it has been held or rendered invalid, unenforceable or
     illegal;

     Words importing the singular number only shall include the plural and
     vice-versa and words importing the masculine gender shall include the
     feminine gender and words importing persons shall include firms and unless
     the contrary intention appears the words "Lessor" and "Lessee" whenever
     they appear in this Lease shall mean respectively "Lessor, its executors,
     administrators, successors and/or assigns" and "Lessee, its executors,
     administrators, successors and/or assigns" and if there is more than one
     Lessee or Lessor or the Lessee or Lessor is a female person or a
     corporation this Lease shall be read with all grammatical changes
     appropriate by reason thereof; and all covenants, liabilities and
     obligations shall be joint and several.

41.  OPTION TO CANCEL

     The Lessee shall have a one-time option to cancel the Lease at the end of
     the third year of the Term, namely, May 31, 2004, provided written notice
     of its intention to cancel is given to Lessor twelve (12) months prior to
     the applicable cancellation date. Should the Lessee not exercise its right
     to cancel the Lease without the stipulated

<PAGE>

                                       16

     delay (May 31, 2003) the Lease will automatically  continue for the balance
     of the Lease term.

42.  BROKER

     Lessee  warrants  that the  present  Lease was not  negotiated  through any
     broker or agent and  undertakes  to hold Lessor free and harmless  from any
     commission claimed.

43.  INTERVENTION

     And Hereto Intervened,

     Icon Health & Fitness  Inc.  (the  "Surety")  being  Shareholder  of and/or
     having business  relations with the Lessee,  having  acquainted itself with
     the  provisions of this Lease and being  satisfied  therewith,  does hereby
     intervene  and bind itself  jointly  and  severally  (solidarily)  with the
     Lessee  for the  performance  of all of the  obligations  of the  Lessee in
     virtue of the present Lease, waving the benefit of division and discussion,
     and  making  the  entire   matter  its   personal   affair.   The  Surety's
     responsibility hereunder shall remain in full force and effect in favour of
     the  Lessor,  its  successors,  purchasers  or  assigns in the event of the
     transfer,  assignment  or  sale  of the  foregoing  Lease  or the  property
     comprising  the Leased  Premises by agreement,  by Court  Judgement,  or by
     operation  of law,  or in the  event of the  amaigamation  or merger of the
     Lessor or the Lessee.  Furthermore,  such a  suretyship  shall in no way be
     terminated in the event of the insolvency or bankruptcy of the Lessee,  the
     taking of possession of the Leased Premises by a Trustee or Receiver of the
     Lessee or of its assets or by the Lessor or any third  party,  the Surety's
     obligations  applying with respect to the damages suffered by the Lessor or
     its successors,  purchasers or assigns and any measures taken by the Lessor
     or its successors,  purchasers or assigns to mitigate  damages in the event
     of a default by the Lessee,  shall in no way terminate  this  suretyship or
     prejudice any claim by the Lessor,  its successors,,  purchasers or assigns
     against  the  Surety  under the  present  suretyship.  Notwithstanding  the
     provisions of article 1881 of the Civil Code of Quebec,  the obligations of
     the Surety towards the Lessor,  its successors,  purchasers or assigns will
     extend to any renewal of the Lease.

44.  LANGUAGE

     The parties and the Surety hereby confirm that they have requested that the
     present document be drafted in the English language.

     Les parties  confirment par les presentes qu'ils ont demande que le present
     document soit redige dans la langue anglaise.

IN WITNESS WHEREOF THE PARTIES HERETO AND THE SURETY HAVE SIGNED THE FOREGOING
DEED OF LEASE AS FOLLOWS:

<PAGE>

                                       17

IN MONTREAL, PROVICE OF QUEBEC, THIS 26th DAY OF JANUARY 2001

                                                INDOME 43 INC.

                                                Per:   /s/ James Lyng
                                                    ----------------------------
  /s/ Andree Nelson                                    LESSOR
---------------------------                            President
WITNESS

<PAGE>

                                       18

IN MONTREAL, PROVICE OF QUEBEC, THIS 26TH DAY OF JANUARY 2001

                                                  ICON OF CANADA INC.

                                                  Per:  /s/ M. Joseph Brough
                                                      --------------------------
  /s/ ILLEGIBLE                                   LESSEE
--------------------------------
WITNESS

IN __________________, ____________________ THIS _____ DAY OF ___________ 200_

                                                  ICON HEALTH & FITNESS INC.

                                                  Per:  /s/ M. Joseph Brough
                                                      --------------------------
  /s/ ILLEGIBLE                                         Duly Authorized
--------------------------------
WITNESS

<PAGE>

                                       19

               EXTRACT OF A MEETING OF THE BOARD OF DIRECTORS OF:

                                 INDOME 43 INC.

                       EFFECTIVE DATE: NOVEMBER 1st, 2000

ON MOTION DULY MADE, SECONDED AND UNANIMOUSLY CARRIED, IT WAS RESOLVED:

1.   THAT this Company enter into an Agreement of Lease with Icon of Canada Inc.
     concerning the premises situated at 500 Lajeunesse Blvd. West, St. Jerome,
     Quebec in accordance with the draft Agreement of Lease as submitted to the
     Meeting;

2.   THAT Mr. James Lyng be authorized to sign the said Deed of Lease for and on
     behalf of the Company together with any and all other documents necessary
     to complete same as well as to make any and all changes, adjustments and
     additions that are in the interest of the Company.

                                           CERTIFIED A TRUE EXTRACT OF A MEETING
                                           OF THE BOARD OF DIRECTORS OF THE
                                           COMPANY HELD ON THE 1st DAY OF
                                           NOVEMBER, 2000

                                             /s/ James Lyng
                                           -------------------------------------
                                           SECRETARY - JAMES LYNG

<PAGE>

                                       20

               EXTRACT OF A MEETING OF THE BOARD OF DIRECTORS OF:

                               ICON OF CANADA INC.

                        EFFECTIVE DATE: NOVEMBER __, 2000

ON MOTION DULY MADE, SECONDED AND UNANIMOUSLY CARRIED, IT WAS RESOLVED:

3.   THAT this Company enter into an Agreement of Lease with Indome 43 Inc.
     concerning the premises situated at 500 Lajeunesse Blvd. West, St. Jerome,
     Quebec in accordance with the draft Agreement of Lease as submitted to the
     Meeting;

4.   THAT Mr. Richard Hebert be authorized to sign the said Deed of Lease for
     and on behalf of the Company together with any and all other documents
     necessary to complete same as well as to make any and all changes,
     adjustments and additions that are in the interest of the Company.

                                           CERTIFIED A TRUE EXTRACT OF A MEETING
                                           OF THE BOARD OF DIRECTORS OF THE
                                           COMPANY HELD ON THE 1ST DAY OF
                                           NOVEMBER, 2000

                                             /s/ ILLEGIBLE
                                           -------------------------------------
                                           SECRETARY

<PAGE>

                                       21

               EXTRACT OF A MEETING OF THE BOARD OF DIRECTORS OF:

                          ICON HEALTH AND FITNESS INC.

                        EFFECTIVE DATE: NOVEMBER __, 2000

ON MOTION DULY MADE, SECONDED AND UNANIMOUSLY CARRIED, IT WAS RESOLVED:

5.   THAT this Company enter into an Agreement of Lease with INDOME 43 Inc. and
     Icon of Canada Inc. concerning the premises situated at 500 Lajeunesse
     Blvd. West, St Jerome, Quebec in accordance with the draft Agreement of
     Lease as submitted to the Meeting;

6.   THAT ________________________________ be authorized to sign as Intervenant
     in the said Deed of lease for and on behalf of the Company together with
     any and all other documents necessary to complete same as well

                                           CERTIFIED A TRUE EXTRACT OF A MEETING
                                           OF THE BOARD OF DIRECTORS OF THE
                                           COMPANY HELD ON THE ___ DAY OF
                                           NOVEMBER, 2000

                                           _____________________________________
                                           SECRETARY

<PAGE>

                                       22

                                [GRAPHIC OMITTED]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00043-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00043-of-00352.parquet"}]]