Document:

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                              4.4 Lease Agreement

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                             CAPILANO BUSINESS PARK

                                    PHASE II

                                    L E A S E

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                                     - ii -

                                   I N D E X

ARTICLE 1
BASIC TERMS, SCHEDULES, DEFINITIONS .......................................    1
          1.01      Basic Terms ...........................................    1
          1.02      Schedules .............................................    2
          1.03      Definitions ...........................................    2
          1.04      Specific Provisions ...................................    2

STANDARD PROVISIONS
ARTICLE 2
GRANT OF LEASE ............................................................    4
          2.01      Demise ................................................    4
          2.02      Licence to Use Common Areas ...........................    4
          2.03      Parking ...............................................    4

ARTICLE 3
TERM, COMMENCEMENT ........................................................    4
          3.01      Term ..................................................    4
          3.02      Commencement Date .....................................    4
          3.03      Extension of Termination Date .........................    5

ARTICLE 4
RENT ......................................................................    5
          4.01      Minimum Rent ..........................................    5
          4.02      Adjustment of Minimum Rent ............................    5
          4.03      Payment of Minimum Rent ...............................    5
          4.04      Pro Rata Adjustment of Rent ...........................    6
          4.05      Payment of Rent Generally .............................    6
          4.06      Arbitration ...........................................    6

ARTICLE 5
ADDITIONAL RENT ...........................................................    7
          5.01      Intent of Lease .......................................    7
          5.02      Standard of Operation .................................    7
          5.03      Additional Rent .......................................    7
          5.04      Estimate of Additional Rent ...........................    7
          5.05      Payment of Additional Rent ............................    8
          5.06      Adjustment of Additional Rent .........................    8
          5.07      Pro Rata Adjustment of Additional Rent ................    8
          5.08      Review of Additional Rent .............................    8
          5.09      Apportionment of Additional Rent ......................    8
          5.10      Evidence of Payments ..................................    9

ARTICLE 6
TAXES .....................................................................    9
          6.01      Tenant's Taxes ........................................    9
          6.02      Increases in Taxes ....................................    9
          6.03      Development Taxes .....................................    9
          6.04      Failure to Pay Taxes ..................................    9
          6.05      Right to Contest ......................................    9
          6.06      Additional Taxes ......................................   10

ARTICLE 7
COMMON AREAS ..............................................................   10
          7.01      Landlord's Responsibility .............................   10
          7.02      Payment of Common Area Costs ..........................   10
          7.03      Increases in Costs ....................................   10
          7.04      Tenant's Use of Common Areas ..........................   10
          7.05      No Obstruction ........................................   10
          7.06      Temporary Allocation of Common Areas ..................   10

ARTICLE 8
UTILITIES, HVAC COSTS .....................................................   11
          8.01      Utilities .............................................   11
          8.02      HVAC ..................................................   11

ARTICLE 9
INSURANCE .................................................................   11
          9.01      Tenant's Insurance ....................................   11
          9.02      Landlord's Insurance ..................................   12

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                                     - iii -

          9.03      Lease Guarantee Insurance .............................   13
          9.04      Increases In Rates ....................................   13
          9.05      Recovery of Landlord's Premiums .......................   13

ARTICLE 10
USE AND OCCUPATION ........................................................   13
          10.01     Quiet Enjoyment .......................................   13
          10.02     Use ...................................................   13
          10.03     City Requirements .....................................   13
          10.04     Hours Of Business .....................................   13
          10.05     Rules And Regulations .................................   14
          10.06     Signs .................................................   14
          10.07     Compliance With Laws ..................................   14
          10.08     Nuisance ..............................................   14

ARTICLE 11
CLEANING, REPAIR ..........................................................   15
          11.01     Cleaning ..............................................   15
          11.02     Tenant's Repairs ......................................   15
          11.03     View Repairs ..........................................   16
          11.04     Landlord May Repair ...................................   16
          11.05     Landlord's Repairs ....................................   16

ARTICLE 12
ALTERATIONS, FIXTURES .....................................................   17
          12.01     Tenant's Alterations ..................................   17
          12.02     Removal of Fixtures ...................................   17
          12.03     Landlord's Alterations ................................   18
          12.04     Adjustment of Floor Area ..............................   19
          12.05     Relocation Of Premises ................................   19

ARTICLE 13
SUBSTANTIAL DAMAGE AND DESTRUCTION, EXPROPRIATION .........................   20
          13.01     No Abatement ..........................................   20
          13.02     Substantial Destruction ...............................   20
          13.03     Architect's Certificate ...............................   21
          13.04     Rebuilding ............................................   21
          13.05     Expropriation .........................................   21

ARTICLE 14
ASSIGNMENT, SUBLETTING, SALE OR MORTGAGE ..................................   21
          14.01     First Right Of Refusal ................................   21
          14.02     Assignment And Subletting .............................   23
          14.03     Control Of Corporation ................................   23
          14.04     Bulk Sale .............................................   23
          14.05     Advertising For Sublease ..............................   23
          14.06     Subordination And Attornment ..........................   24
          14.07     Estoppel Certificate, Acknowledgements ................   24
          14.08     Sale By The Landlord ..................................   24

ARTICLE 15
INDEMNITY, LIENS ..........................................................   25
          15.01     Tenant's Indemnity ....................................   25
          15.02     Personal Injury And Property Damage ...................   25
          15.03     Landlord's Indemnity ..................................   26
          15.04     Liens .................................................   26

ARTICLE 16
ENVIRONMENTAL MATTERS
          16.01     Definitions ...........................................   26
          16.02     Tenant's Covenants and Indemnity ......................   26
          16.03     Survival ..............................................   28

ARTICLE 17
DEFAULT, REMEDIES, TERMINATION ............................................   28
          17.01     Default ...............................................   29
          17.02     Accelerated Rent ......................................   29
          17.03     Landlord May Perform ..................................   29
          17.04     Distress ..............................................   29
          17.05     Costs And Interest ....................................   29
          17.06     Vacate Upon Termination ...............................   29

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                                     - iv -

          17.07     Additional Rights On Re-Entry .........................   30
          17.08     No Waiver .............................................   31
          17.09     Remedies Cumulative ...................................   31
          17.10     Landlord Not Liable ...................................   31
          17.11     Offer to Lease, Signs .................................   31
          17.12     Holding over ..........................................   31
          17.13     Waiver of Rights Of Redemption ........................   32

ARTICLE 18
GENERAL PROVISIONS ........................................................   32
          18.01     Co-Covenanter .........................................   32
          18.02     Approvals .............................................   32
          18.03     Landlord's Performance ................................   32
          18.04     Relationship Of Parties ...............................   32
          18.05     Sole Agreement ........................................   32
          18.06     Modification ..........................................   33
          18.07     Costs and Registration ................................   33
          18.08     No Brokerage Commission ...............................   33
          18.09     Applicable Law, Court, Language .......................   33
          18.10     Construed Covenants, Severability .....................   33
          16.11     Time ..................................................   34
          18.12     Notice ................................................   34
          18.13     Index, Headings .......................................   34
          18.14     Number And Gender .....................................   35
          18.15     No Transfer on Bankruptcy .............................   35
          18.16     Successors Bound ......................................   35
          18.17     Landlord's Work and Tenant's Work .....................   35
          18.18     Improvement Allowance .................................   35
          18.19     Tenant's Acceptance ...................................   36

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     THIS LEASE dated November 30, 1999, is made and entered into by the
Landlord, Tenant, and Co-Covenantor, if any, named herein who, in consideration
of the covenants herein contained, agree as follows:

                                    ARTICLE 1
                      BASIC TERMS, SCHEDULES, DEFINITIONS

1.01 Basic Terms

     (a)  (i)  Landlord: HOOPP REALTY INC.

          (ii) Address of Landlord: c/o Tonko-Novam Management Ltd. Suite 480,
               789 West Pender Street, Vancouver, B.C. V6C 1H2

     (b)  (i)  Tenant: OFFSHORE SYSTEMS LTD.

          (ii) Description of Tenant: Navigation Equipment

          (iii)Address of Tenant: 107 - 930 West 1st Street, North Vancouver,
               B.C. V7P 3N4

          (iv) Operating Name: Offshore Systems Ltd.

     (c)  (i)  Co-Covenantor: Not Applicable

          (ii) Description of Co-Covenantor:

          (iii)Address of Co-Covenantor:

     (d)  Address of Premises: Units 106A to 109A and 106B to 111B - 930 West
          1st Street, North Vancouver, B.C., V7P 3N4

     (e)  Floor Area: 18,206 square feet.

     (f)  (i)  Term: Eight (8) years.

          (ii) First Day of Term: August 1, 1999

          (iii)Termination Date: July 31, 2007

     (g)  Minimum Rent:

Lease    (i) Per Square Ft/
Year           Per Annum      (ii) $ Per Annum   (iii) $ Per Month
------      ---------------        -----------         -----------
1 to 7        $14.10               $256,704.60         $21,392.05

     (h)  Use of Premises: Designer and manufacturer of navigational equipment

     (i)  Fixturing Period: none

     (j)  Parking stalls:   Twenty-two (22)

     (k)  Improvement Allowance: None

     The foregoing Basic Terms are hereby approved by the parties and each
reference in this Lease to any of the Basic Terms shall be construed to include
the provisions set forth.

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1.02 Schedules

          All schedules to this Lease are hereby incorporated herein and made
part of this Lease.

1.03 Definitions

          Unless otherwise defined herein, the following words, phrases and
expressions shall have attributed to them the meanings set out in Schedule "B":

     (1)  Additional Rent
     (2)  Basic Terms
     (3)  Co-Covenantor
     (4)  Common Areas
     (5)  Common Area Costs
     (6)  Development
     (7)  Fixturing Period
     (8)  Floor Area
     (9)  Gross Leaseable Area
     (10) Landlord
     (11) Lease
     (12) Lease Year
     (13) Minimum Rent
     (14) Notice
     (15) Parking Areas
     (16) Premises
     (17) Property Taxes
     (18) Proportionate Share of Tenant, Tenant's Proportionate Share
     (19) Rules and Regulations
     (20) Tenant
     (21) Termination Date

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                               SPECIFIC PROVISIONS
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1.04 Specific Provisions

          The following provisions (the "Specific Provisions") have been agreed
upon by the Tenant and the Landlord to add to or modify the standard provisions
of the Lease which are those contained in ARTICLES 2 to 18 of this Lease (the
"Standard Provisions"). In case of discrepancy, the Specific Provisions will
prevail over the Standard Provisions.

1.04(a) Waiver of Minimum Rent

          Provided the Tenant is not in default under this Lease, the Tenant
shall not be required to pay Minimum Rent per the period August 1, 1999 - April
30, 2000 (the "Free Minimum Rent Period"). For clarification, during the Free
Minimum Rent Period the Tenant shall be required to pay Additional Rent and any
other amounts required to be paid by the Tenant under this Lease.

1.04(b) Percentage Rent

          During the duration of the Term and any renewal thereof the Tenant
shall pay to the Landlord, yearly, no later than the sixtieth (60th) day after
the Tenant's fiscal year end and in addition to all rents and other payments
required under this Lease, a percentage rent (the

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"Percentage Rent") equal to fifteen per cent (15%) of the net profit of the
Tenant for the fiscal year just ended (the "Net Profit") as follows.

(i)  The Net Profit shall be determined by the Tenant's auditors as the net
     profit of the fiscal year prior to taxes and minority interest.

(ii) The obligation of the Tenant to pay Percentage Rent shall terminate when
     the cumulative amounts paid for Percentage Rent total $192,528.45, or,
     failing which, at the end of the Tenant's fiscal year after the expiry of
     this Lease and any renewal thereof (excluding early termination, in which
     case the Term shall be deemed to expire at the date it would have expired
     if an early termination of the Lease had not occurred).

(iii) For such last fiscal year of the Tenant, the percentage rent required to
     be paid shall be that portion of the Percentage Rent which relates to that
     part of the Tenant's fiscal year that extends until the expiry of the Lease
     and any renewal thereof.

This Sub-section 1.04(b) shall survive the termination of the Lease until the
Tenant has fulfilled its obligations under this Sub-section 1.04(b)

1.04(c) Financial Information

          During the duration of the Term the Tenant shall supply to the
Landlord:

(i)  quarterly: unaudited financial statements, a quarterly report and a 12
     month cash flow projection with supporting documentation; and

(ii) yearly: audited financial statements and annual report.

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                               STANDARD PROVISIONS
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                                    ARTICLE 2
                                 GRANT OF LEASE

2.01 Demise

The Landlord hereby leases to the Tenant, for the Term and upon and subject to
the covenants and conditions hereinafter expressed, the Premises indicated
outlined in heavy black in Schedule "A" hereto and containing the number of
square feet of Floor Area set out in Section 1.01 (e), more or less, and which
are more particularly described in Schedule "A".

2.02 Licence to Use Common Areas

The Landlord grants to the Tenant for the Term as an appurtenant part of this
Lease, for use by the Tenant and its agents, invitees, servants, employees,
licensees and customers, in common with the Landlord and other tenants of the
Development and their respective agents, invitees, servants, employees,
licensees and customers, the non-exclusive right and licence to use the Common
Areas for the purposes as provided herein and in accordance with good business
park practice, upon and subject to the covenants and conditions hereinafter
expressed and in particular, without limiting the generality of the foregoing,
such right, servitude, right-of-way and licence of use hereby granted to the
Tenant shall include the right to use the Parking Areas (including the means of
pedestrian and vehicular access and the entrances and exits to and from the
Development included therein, but excluding those portions thereof which
constitute any areas allocated to a tenant or licensee on a seasonal or
temporary basis while used and occupied) for the purposes of pedestrian and
vehicular access to and from the Development and the parking of vehicles in
parking spaces provided therein.

2.03 Parking

During the Term of the Lease, the Tenant shall have the exclusive use of the
number of parking stalls set out in Section 1.01(j) in the Parking Areas as
designated by the Landlord.

                                    ARTICLE 3
                               TERM, COMMENCEMENT

3.01 Term

The Term of this Lease shall be for the period set out in Section 1.01 (f)(i),
beginning on the First Day of the Term set out in Section 1.01(f)(ii) and
terminating on the Termination Date set out in Section 1.01 (f) (iii), subject
to the extension provisions of Section 3.03.

3.02 Commencement Date

Notwithstanding the beginning of the Term pursuant to Section 3.01, the Tenant's
obligations to open for business and to pay rent shall commence on the earlier
of:

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     a)   the day next following the expiration of the Fixturing Period set out
          in Section 1.01(i); or

     (b)  the day the Tenant actually opens for business to the public.

3.03 Extension of Termination Date

In the event that the Tenant's obligations to open for business and to pay rent
commence pursuant to Section 3.02 on a day which is after the First Day of the
Term and either:

     (a)  the First Day of the Term falls on the first day of a month; or

     (b)  the First Day of the Term falls on a day other than the first day of a
          month and the day of commencement of such obligations occurs during a
          month other than the month during which the First Day of the Term
          occurs;

the Term shall automatically be extended by the number of days during the period
between the First Day of the Term and the first day of the month next following
the commencement of such obligations and the Termination Date shall be deemed to
have been amended accordingly.

                                    ARTICLE 4
                                      RENT

4.01 Minimum Rent

The Tenant shall pay to the Landlord in and for each Lease Year, Minimum Rent in
the amount per annum set out in Section 1.01(g) (ii) for the respective Lease
Year, by equal consecutive monthly instalments in the amount set out in Section
1.01 (g) (iii} for such Lease Year, subject to the adjustment provisions of
Section 4.02.

4.02 Adjustment of Minimum Rent

In the event that the Floor Area is revised in accordance with Section 12.04,
the Minimum Rent for each Lease Year shall be recalculated automatically by
multiplying the revised Floor Area by the amount per square foot set out in
Section 1.01(g) (i) for the respective Lease Year and the annual Minimum Rent
for each Lease Year and the amount of the equal monthly instalments for such
Lease Year shall be deemed to have been amended accordingly. Upon any such
revision of Floor Area, the Landlord shall calculate the amount of the
difference between the original Minimum Rent and the revised Minimum Rent for
the period prior to the date of such revision and, if such amount represents an
increase in Minimum Rent, the Tenant shall immediately pay the amount to the
Landlord, or, if such amount represents a decrease in Minimum Rent, the Landlord
shall immediately repay the amount to the Tenant. A comparable adjustment in
respect of any earlier payment of the Tenant's Proportionate Share of Additional
Rent shall also be made.

4.03 Payment of Minimum Rent

The first monthly instalment of Minimum Rent, or the appropriate portion thereof
calculated in accordance with Section 4.04, shall be paid on or before the First
Day of the Term and subsequent instalments of Minimum Rent shall be paid
strictly in advance on the first day of each and every succeeding month
throughout the Term.

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4.04 Pro Rata Adjustment of Rent

All rent shall be deemed to accrue from day to day, and if for any reason it
shall became necessary to calculate the rental for irregular periods of less
than one year or one month, as the case may be, an appropriate pro rata
adjustment shall be made on a daily basis in order to compute the rent for such
irregular period.

4.05 Payment of Rent Generally

All payments by the Tenant to the Landlord required or contemplated by this
Lease shall be:

     (a)  paid to the Landlord by the Tenant in lawful currency of Canada;

     (b)  made when due hereunder, without prior demand therefor and without any
          set-off, compensation or deduction whatsoever, at the address of the
          Landlord set out in Section 1.01(a) (ii) or such other place as the
          Landlord may designate from time to time to the Tenant;

     (c)  applied towards amounts then outstanding hereunder, in such manner as
          the Landlord may see fit;

     (d)  deemed to be rent, in partial consideration for which this Lease has
          been entered into, and shall he payable and recoverable as rent, such
          that the Landlord shall have all rights and remedies against the
          Tenant for default in any such payments as in the case of arrears in
          rent, all notwithstanding that any such payment may not be expressly
          said to be rent or Additional Rent;

     (e)  subject to an overdue charge if any such payment is not made when due,
          which charge shall be Additional Rent equal to Two per cent (2%) per
          month (twenty-four per cent (24%) per annum) of the overdue amount
          (but in any case such charge shall be not less than Fifty Dollars
          ($50.00) per month) payable with the next monthly instalment of
          Minimum Rent, all without prejudice to any other right or remedy of
          the Landlord;

     (f)  unless specifically provided otherwise herein, made by way of a series
          of cheques, post-dated to the respective due dates of such payments,
          which the Tenant shall supply to the Landlord at the commencement of
          each Lease Year or earlier should the Landlord so request, without
          prejudice to any other right or remedy of the Landlord.

4.06 Arbitration

In the event of any bona fide dispute arising between the Tenant and the
Landlord as to the amount of any rent payable under this Lease which requires
calculation, the Tenant shall nevertheless immediately make payment in
accordance with any notice from the Landlord but the dispute, at the option of
the Landlord or, so long as such payment has been made, the Tenant, shall
immediately be referred to an arbitrator agreed upon by the Tenant and the
Landlord or in the event that they cannot agree upon such arbitrator, then the
question shall be referred to the arbitration of one arbitrator under the
Commercial Arbitration Act, of British Columbia, and amendments thereto or such
other statute or statutes of like effect being in force in British Columbia, and
such arbitrator, whether agreed upon or appointed under the said Statute, shall
have access to such records of the

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parties as may be reasonably necessary and the decision of such arbitrator shall
be final and binding upon the parties. Costs of the arbitration shall follow the
award, unless otherwise determined by the arbitrator. Any adjustment in rent
required to be made by reason of any such decision of the arbitrator shall be
made within fifteen (15) days thereof.

                                    ARTICLE 5
                                 ADDITIONAL RENT

5.01 Intent of Lease

This Lease shall be absolutely net to the Landlord such that the Tenant shall
pay for its own account, and without any variation, set-off or deduction, all
costs, expenses, rates, taxes and charges in any way relating to the Premises
and the business of the tenant as well as the Tenant's Proportionate Share of
all taxes, insurance premiums and other rates, costs, expenses and charges
relating to the operation of the Development, other than the payment of any
interest or principal required to be paid by the Landlord under any mortgage
related to the Development, any income taxes payable by the Landlord, the cost
of structural repairs and expenses of a capital nature in accordance with normal
accounting practice.

5.02 Standard of Operation

The Landlord shall operate the Development in a reasonable and prudent manner in
accordance with recognized industry standards for similar developments.

5.03 Additional Rent

Without limiting the generality of Article 5.01, the Tenant shall pay to the
Landlord as Additional Rent:

     (a)  a Proportionate Share of Property Taxes attributable to the
          Development, in accordance with Article 6;

     (b)  a Proportionate Share of Common Area Costs, in accordance with Article
          7;

     (c)  a Proportionate Share of insurance premiums attributable to the
          Development, in accordance with Article 9;

     (d)  such other sums, amounts, costs, charges or increases therein as are
          required to be paid by the Tenant to the Landlord pursuant to this
          Lease in addition to Minimum Rent.

5.04 Estimate of Additional Rent

The Landlord may in respect of any or all of the Additional Rent contemplated by
Section 5.03 compute bona fide estimates of the amounts which are anticipated to
accrue in the next following Lease Year, calendar year or fiscal year, or
portion thereof, as the Landlord may determine is the most appropriate period
for each item or category of Additional Rent, and the Landlord shall provide the
Tenant with written notice of the amount of any such estimate, as well as of the
estimated aggregate Tenant's share thereof, not less than thirty (30) days
before the commencement of such Lease Year, calendar year or fiscal year, or
portion thereof, as the case may be, except that in respect of the first Lease
Year, the Landlord will provide such written notice on or before the day on
which the Tenant's obligations to open for business and pay rent commence
pursuant to Section 3.02.

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5.05 Payment of Additional Rent

With respect to any Additional Rent which the Landlord elects to estimate from
time to time pursuant to Section 5.04, following receipt of the written notice
of the estimated aggregate amount of the Tenant's share thereof, the Tenant
shall pay to the Landlord the amount of such estimated aggregate share, in equal
consecutive monthly instalments payable with monthly instalments of Minimum Rent
when due pursuant to Section 4.03. With respect to any Additional Rent which the
Landlord has not elected to estimate from time to time pursuant to Section 5.04,
the Tenant shall pay to the Landlord the amount of the Tenant's share of such
Additional Rent, determined pursuant to the applicable provisions of this Lease,
within fifteen (15) days of receipt of an invoice therefor.

5.06 Adjustment of Additional Rent

Within ninety (90) days of the conclusion of each Lease Year, calendar year or
fiscal year, or portion thereof, as the case may be, for which the Landlord has
estimated any Additional Rent pursuant to Section 5.04, the Landlord shall
compute the actual amount of such Additional Rent, as well as the Tenant's
actual aggregate share thereof pursuant to the applicable provisions of this
Lease, and make available to the Tenant for examination a statement in
reasonable detail of such actual Additional Rent and such actual aggregate share
for such year or portion thereof. If the Tenant's aggregate share of the actual
amount of such earlier estimated Additional Rent, as set out in any such
statement, exceeds the aggregate amount of the instalments paid pursuant to
Section 5.05 in respect of such earlier estimated Additional Rent, the Tenant
shall pay to the Landlord the amount of the excess within fifteen (15) days of
the receipt of any such statement. If the contrary is the case, any such
statement shall be accompanied by a refund to the Tenant of any such overpayment
without interest.

5.07 Pro Rata Adjustment of Additional Rent

In the event this Lease commences, expires or is determined before the end of
the period for which any item or category of Additional Rent would otherwise be
payable, the amount thereof payable by the Tenant shall be apportioned and
adjusted in accordance with Section 4.04.

5.08 Review of Additional Rent

No party hereto may claim a readjustment in respect of any Additional Rent
whether paid or payable in instalments or otherwise, if based on any error of
estimation, allocation, calculation or computation thereof, unless claimed in
writing prior to the expiration of one year from the conclusion of the twelve
(12) month period in respect of which such Additional Rent accrued.

5.09 Apportionment of Additional Rent

Whenever, in the Landlord's reasonable opinion, an item or category of
Additional Rent properly relates to:

     (a)  the Premises alone, the Tenant shall pay the whole amount thereof; and

     (b)  but a portion of the Development and the Premises are located within
          such portion, the Tenant's Proportionate Share of such item or
          category shall be calculated in relation to the Gross Leaseable Area
          of such portion.

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5.10 Evidence of Payments

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

                                    ARTICLE 6
                                      TAXES

6.01 Tenant's Taxes

The Tenant shall pay promptly when due all taxes, rates, duties and fees as may
be assessed or levied by any competent authority in respect to or as a result of
any business or other activity carried on within or in connection with the
Premises.

6.02 Increases in Taxes

The Tenant shall pay to the Landlord as Additional Rent immediately upon demand
an amount equal to any increase in Property Taxes by reason of any installation,
alteration or use made in or to the Premises by or for the benefit of the Tenant
or any subtenant, assignee, concessionaire or licensee of the Tenant.

6.03 Development Taxes

The Tenant shall pay to the Landlord as Additional Rent in accordance with
Section 5.04, 5.05 and 5.06 the Tenant's Proportionate Share of Property Taxes
levied in respect of the Development or fairly attributable thereto.

6.04 Failure to Pay Taxes

Should the Tenant fail to comply with any payment required by the Tenant
pursuant to Section 6.01, and subject to rectification of such default within
the period set out in Section 17.01(d), without limiting the generality of
Section 17.03, the Landlord may pay all or part of such required payments
pursuant to that Section 17.03.

6.05 Right to Contest

Notwithstanding any payment by the Landlord on behalf of the Tenant pursuant to
Section 6.04, the Tenant shall have the right to contest the validity or amount
of any taxes, rates, duties or fees contemplated by section 6.01 so long as the
Tenant first provides such security in lieu of payment as the Landlord may
require and the Landlord's interest in the Premises or the Development is not
rendered subject to forfeiture, sale or disturbance, in which case during the
bona fide period of such contest the Tenant shall not be deemed to be in default
hereunder, but upon the first determination of such contest, the Tenant shall
immediately pay and satisfy the amount found to be due thereby, if any, together
with all costs, penalties or interest, and shall then be entitled to the release
of any such security. Notwithstanding any payment to the Landlord pursuant to
Section 6.02 or any payment by the Landlord to the applicable authorities, the
Tenant shall have the right to contest the validity or amount of any increases
in Property Taxes contemplated by Section 6.02 so long as such payment to the
Landlord has in fact been made and the Landlord's interest in the Premises or
the Development is not rendered subject to forfeiture, sale or disturbance and
should such contest succeed such that a rebate is received by the Landlord from
the applicable authorities, the Landlord shall repay all or the appropriate
portion of such rebate to the Tenant.

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6.06 Additional Taxes

The Tenant shall pay to the Federal, Provincial or Municipal authority imposing
the same, all service, business transfer, transaction value, ad valorem sales or
other taxes by whatever name called, if any, assessed upon and as a direct
result of the payment of Minimum Rent and Additional Rent hereunder as often as
such taxes become due and whether or not such taxes are applicable on the date
of the execution of this Lease or become applicable thereafter. In the
event that such taxes are by statute, by-law or regulation imposed upon or
payable by the Landlord or recipient of Minimum Rent and Additional Rent, the
Tenant shall reimburse the Landlord for the full amount of such taxes within
fifteen (15) days of receipt of an invoice therefor.

                                    ARTICLE 7
                                  COMMON AREAS

7.01 Landlord's Responsibility

The control, general cleanliness, operation and maintenance of the Common Areas
shall be the exclusive domain of the Landlord such that, subject only to Section
5.02, the manner in which the Common Areas shall be operated and maintained and
the expenditures therefor shall be at the sole discretion of the Landlord,
acting reasonably.

7.02 Payment of Common Area Costs

The Tenant shall pay to the Landlord as Additional Rent the Tenant's
Proportionate Share of Common Area Costs in accordance with Sections 5.04, 5.05
and 5.06.

7.03 Increases in Costs

The Tenant shall not do or omit, or permit to be done or omitted, upon or about
the Premises anything which shall cause the Common Area Costs to be increased.
If the Common Area Costs shall be increased for any of the aforesaid reasons,
the Tenant shall pay to the Landlord as Additional Rent the amount of such
increase.

7.04 Tenant's Use of Common Areas

The non-exclusive right and licence granted to the Tenant, and its agents,
invitees, servants, employees, licensees and customers pursuant to Section 2.02
may be exercised only during the business hours which pertain under this Lease
and subject to the Rules and Regulations of the Development and to the other
provisions of this Lease.

7.05 No Obstruction

The Tenant shall not, save as may be specifically allowed by the Landlord in
writing, keep any equipment, materials or other thing on or about the Common
Areas or otherwise obstruct the Common Areas.

7.06 Temporary Allocation of Common Areas

From time to time, the Landlord may permit portions of the Common Areas to be
used exclusively by specified tenants or licensees on a seasonal or other basis.

                                                                              10

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                                    ARTICLE 8
                              UTILITIES, HVAC COSTS

8.01 Utilities

The Tenant shall pay promptly, when due, all rates, levies and charges
(including installation charges) for electricity, gas, water, telephone or other
utilities supplied to or used in the Premises as separately metered or
separately invoiced by the supplier and, if not so metered or invoiced, the
Tenant shall pay to the Landlord as Additional Rent, the Tenant's Proportionate
Share of such rates, levies and charges provided however if the Tenant is an
excessive user (in the Landlord's opinion acting reasonably) of any such
utilities the Tenant shall be charged accordingly as the Landlord shall
determine acting reasonably and the Tenant shall pay all costs of making such
determination including, without limitation, the cost of the purchase and
installation of a meter or other special equipment.

8.02 HVAC

The Tenant shall cause all heating, ventilating and air conditioning apparatus
serving the Premises, whether located in or on the roof above the Premises, to
be regularly repaired and replaced and, without limitation, the Tenant shall
subscribe to such mandatory regular maintenance program with such service
company as may be required by the Landlord by written notice for the maintenance
of:

     (a)  any gas-fired unit heaters for clear height (21 feet) industrial space
          within the Premises as originally supplied by the Landlord; or

     (b)  any other heating, ventilating and air conditioning apparatus serving
          the Premises;

and should the Tenant fail to do so, the Landlord may cause such repairs and
replacements and the Tenant shall forthwith pay to the Landlord the cost
thereof, plus an administrative fee of 15% of such costs.

                                    ARTICLE 9
                                    INSURANCE

9.01 Tenant's Insurance

     (a)  The Tenant shall take out and keep in full force and effect throughout
          the Term and during such other time as the Tenant occupies the
          Premises or any part thereof:

          (i)  "all-risk" insurance upon its equipment, furniture, fixtures and
               improvements and upon all other property in the Premises owned by
               the Tenant or for which the Tenant is legally liable, in an
               amount equal to the full replacement value thereof, which amount
               shall be determined by the decision of the Landlord, acting
               reasonably, in the event of a dispute;

          (ii) broad boiler and machinery insurance on any such equipment in the
               Premises;

          (iii)Comprehensive general liability insurance, including without
               limitation non-owned automobile insurance, against claims for
               personal injury, death or property damage or loss upon, in or
               about the Premises or

                                                                              11

<PAGE>

               otherwise howsoever arising out of the Operations of the Tenant
               or any person conducting business from the Premises, to the
               combined limit as may be reasonably required by the Landlord from
               time to time but in any case of not less than Two Million Dollars
               ($2,000,000.00) in respect to injury or death to a single person
               and in respect of any one accident concerning property damage, as
               well as "all risks" tenant's legal liability insurance as an
               extension to such comprehensive general liability insurance;

          (iv) owned automobile insurance with respect to all motor vehicles
               owned by the Tenant and operated in its business;

          (v)  "All Risks" tenant's legal liability insurance as an extension of
               the Tenant's comprehensive general liability insurance;

          (vi) such other insurance in such amounts and upon such terms as the
               Landlord may determine from time to time on consultation with its
               insurance advisors.

     (b)  Each policy of insurance required of the Tenant as aforesaid shall
          name the Landlord and any persons or corporations designated by the
          Landlord as additional named insureds as their interests may appear
          and shall include a waiver of rights of subrogation against the
          Landlord and the Tenant and, as appropriate, a cross-liability and/or
          severability of interest clause protecting the Landlord against claims
          by the Tenant as if the Landlord were separately insured and
          protecting the Tenant against claims by the Landlord as if the Tenant
          were separately insured as well as a clause that the insurer will not
          cancel or change or refuse to renew the insurance without first giving
          the Landlord thirty (30) days' prior written notice. All such policies
          will be with insurers acceptable to the Landlord and in form
          satisfactory to the Landlord and the Tenant will deliver to the
          Landlord a copy of all such policies or certificates of such
          insurance.

9.02 Landlord's Insurance

The Landlord shall take out or cause to be taken out and keep or cause to be
kept in full force and effect:

     (a)  standard fire insurance and extended coverage or additional perils
          supplemental contracts on the building and improvements comprising the
          Development in an amount such as would be carried by a prudent owner,
          subject to such deductions and exceptions as the Landlord may
          determine, against fire and such other hazards covered by policies
          normally in use from time to time for buildings and improvements of a
          similar nature similarly situated; and

     (b)  comprehensive public liability insurance in respect of the Development
          of a kind and in an amount such as would be carried by a prudent
          owner, subject to such deductions and exceptions as the Landlord may
          determine;

provided that nothing herein shall prevent the Landlord insuring with broader
coverage.

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9.03 Lease Guarantee Insurance

The Tenant shall furnish to the Landlord or the Landlord's insurer, on a
confidential basis, such financial statements, references, sales projections and
executed application forms as may be required by the Landlord in order to obtain
and maintain lease guarantee insurance or such other insurance as will ensure
that the Landlord is paid the rent due hereunder, if the same is required by the
Landlord's lender. The costs of such insurance shall be borne by the Tenant,
either by paying the premium directly to the insurer or to the Landlord as
Additional Rent, whichever the Landlord may require.

9.04 Increases In Rates

The Tenant shall not do or omit or permit to be done or omitted upon the
Premises anything which shall cause the rate of insurance upon the Development
or any part thereof to be increased or cause such insurance to be cancelled. If
the said insurance rate shall he increased as aforesaid, the Tenant shall pay to
the Landlord the amount of the increase as Additional Rent. If any insurance
policy upon the Development or any part thereof is cancelled or threatened to be
cancelled by reason of the use or occupancy by the Tenant or any act or omission
as aforesaid, the Tenant shall forthwith remedy or rectify such use, occupation,
act or omission upon being requested to do so in writing by the Landlord, and if
the Tenant shall fail to so remedy or rectify, the Landlord may at its option
terminate this Lease forthwith.

9.05 Recovery of Landlord's Premiums

For purposes of the recovery of the cost of insurance premiums paid by the
Landlord, such premiums shall be deemed to be included in Common Area Costs and
recovered in accordance with Article 7.

                                   ARTICLE 10
                               USE AND OCCUPATION

10.01 Quiet Enjoyment

The Landlord covenants with the Tenant for quiet enjoyment, for so long as the
Tenant is not in default hereunder, and except as provided herein.

10.02 Use

The Premises shall not be used for any purpose other than as set forth in
Section 1.01(h).

10.03 City Requirements

Notwithstanding the use set forth in section 1.01 (h), the Premises shall only
be used in accordance with the requirements of the City of North Vancouver,
which requirements the Tenant acknowledges having investigated to determine that
the Tenant's proposed use will be lawful. The portion of the Premises occupied
by any non-industrial uses accessory to any principal industrial uses shall not
exceed 40% of the Floor Area, unless the Landlord otherwise agrees in writing.

10.04 Hours of Business

     (a)  The Tenant shall operate and conduct its business only during such
          hours as permitted under any proper law or by-law regulating or
          limiting the hours when such business may be carried on;

                                                                              13

<PAGE>

     (b)  The Landlord reserves the right to close or otherwise restrict the use
          of Parking Areas after the general business hours of the Development.

10.05 Rules And Regulations

     (a)  The Rules and Regulations attached hereto as Schedule "C", as the same
          may be amended from time to time and being of general application to
          the tenants in the Development, are part hereof and shall be read as
          forming part of the terms and conditions of this Lease as if the same
          were embodied herein.

     (b)  All Rules and Regulations now or hereafter in force shall in all
          respects be observed and performed by the Tenant and its employees,
          agents, customers, licensees and invitees and the Tenant shall cause
          such observance and performance.

     (c)  For the enforcement of all Rules and Regulations, the Landlord shall
          have available to it all remedies in this Lease provided for a breach
          of any provision thereof and all legal rights and remedies including
          injunction, whether or not provided for in this Lease, both at law and
          in equity.

     (d)  The Landlord shall not be responsible to the Tenant for the
          non-observance or violation by any other Tenant or person of the Rules
          and Regulations.

10.06 Signs

The Tenant shall erect, install and maintain a suitable sign of a kind and size
and in a location, all as first approved in writing by the Landlord, publicizing
the Tenant's operating name, as set forth in Section 1.01(b) (iv), and type of
business and any other signs, as well as the advertising practices of the Tenant
and any display windows, shall comply with the applicable Rules and Regulations.

10.07 Compliance With Laws

The Tenant shall carry on and conduct its business from the Premises in such
manner as to comply with any and all statutes, by-laws, rules and regulations of
any Federal, Provincial, Municipal or other competent authority for the time
being in force, and shall not do anything upon the Premises in contravention
thereof.

10.08 Nuisance

The Tenant shall not do or permit to be done or omitted anything which could
damage the Development or injure or impede the business of the Tenant or of
other tenants in the Development or which shall or might result in any nuisance
in or about the Premises, whether to the Landlord, any tenant of the Development
or any other party, the whole as determined by the Landlord, acting reasonably.
in any of the foregoing events, the Tenant shall forthwith remedy the same and
if such thing or condition shall not be so remedied, the Landlord may, after
such notice, if any, as the Landlord may deem appropriate in the circumstances,
correct such situation at the expense of the Tenant and the Tenant shall pay
such expense to the Landlord as Additional Rent. Without limiting the generality
of the foregoing, the Tenant shall not use the Premises for the preparation,
manufacture or mixing of anything that might emit any objectionable odour,
noises, vibrations or lights and if

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<PAGE>

sound insulation is required to muffle noise produced by the Tenant, the Tenant
shall provide all necessary insulation at its own cost.

                                   ARTICLE 11
                                CLEANING, REPAIR

11.01 Cleaning

     (a)  The Tenant shall keep the Premises and, without limitation, the inside
          of all glass, windows and doors of the Premises and all exterior
          surfaces of the Premises, in a neat, clean and sanitary condition and
          shall not allow any refuse, garbage or other loose or objectionable or
          waste material to accumulate in or about the Premises but rather shall
          dispose of the same in accordance with the Rules and Regulations.

     (b)  The Tenant shall, immediately before the termination of the Term, wash
          the floors, windows, doors, walls and woodwork of the Premises and
          shall not, upon such termination, leave upon the Premises any refuse,
          garbage or waste material.

     (c)  The Tenant shall pay for its own janitor service, cleaning of debris,
          removal of garbage and such other costs as may be incurred in cleaning
          in accordance with this Section 11.01; provided that the Tenant shall
          use the common garbage facilities of the Development unless the
          Landlord requires otherwise.

     (d)  In the event the Tenant fails to clean in accordance with this Section
          11.01 upon notice so to do from the Landlord, the Landlord may clean
          the same and the Tenant shall pay to the Landlord as Additional Rent
          the cost thereof forthwith upon demand.

11.02 Tenant's Repairs

     (a)  The Tenant shall repair the Premises, always excepting reasonable wear
          and tear and repairs which are the responsibility of the Landlord
          pursuant to this Article 11, and shall redecorate as required and
          maintain in good condition the interior of the Premises, any
          appurtenances thereto, any improvements now or hereafter erected or
          installed therein and any apparatus or equipment of the Tenant therein
          or therefor.

     (b)  Without restricting the generality of Section 11.02(a), the Tenant's
          obligation to repair shall include any damage to or breakage of glass,
          plate glass, shop windows, moulding, entrance, signs, doors, hardware,
          lighting, wiring, plumbing, heating and ventilating and other
          equipment, improvements, partitions, walls, fixtures, thresholds and
          all trade fixtures and furnishings of the Tenant or otherwise in or
          for the Premises; provided, however, that the Tenant's obligation to
          repair shall not include repairs to the roof or to structural or other
          outside walls (except plate glass and all doors, grills and/or sliding
          panels leading from the Premises) of the Premises unless the need to
          repair is caused by the default or negligence of the Tenant, its
          agents, employees, invitees or licensees, in which case the Landlord
          shall repair and the Tenant shall pay to the Landlord as Additional
          Rent the cast thereof forthwith upon demand.

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<PAGE>

     (c)  The Tenant shall keep well-painted at all times the interior of the
          Premises in accordance with the reasonable requests of the Landlord,
          using colours which shall first be approved in writing by the
          Landlord.

     (d)  The Tenant shall keep all plumbing facilities within the Premises and
          all drains therefrom in good repair and working order.

     (e)  The Tenant, its employees or agents shall not mark, paint, drill or in
          any way deface any walls, ceiling, partitions, floors, wood, stone or
          ironwork without the written approval of the Landlord.

     (f)  The Tenant will not enter, nor will it cause, suffer or permit entry,
          onto any roof in the Development, without being accompanied by an
          authorized representative of the Landlord, and the Tenant will not
          make any opening in the roof without the prior written consent of the
          Landlord.

11.03 View Repairs

The Landlord may enter the Premises at any reasonable time during business hours
and at any time during any emergency to view the state of repair and the Tenant
shall repair according to notice in writing from the Landlord so to do, subject
to the exceptions contained in this Article 11.

11.04 Landlord May Repair

If the Tenant fails to repair according to notice from the Landlord within
fourteen (14) days of receipt thereof, the Landlord may make such repairs
without liability to the Tenant for any loss or damage that may occur to the
Tenant's fixtures or other property or to the Tenant's business by reason
thereof, and upon completion thereof, the Tenant shall pay as Additional Rent
the Landlord's costs for making such repairs plus ten per cent (10%) thereof for
overhead and supervision, such payment to be made on presentation of an invoice
therefor.

11.05 Landlord's Repairs

     (a)  The Landlord shall be responsible for all structural repairs to the
          Premises, repairs to the roof, foundations and bearing structure of
          the Development and repairs of damage to the Development caused by
          perils against which the Landlord is obligated to insure hereunder.

     (b)  Notwithstanding the other provisions of this Section 11.05, the
          Landlord shall not be obliged to make repairs or replacements caused
          by any default or negligence of the Tenant, its agents, employees,
          invitees or licensees, which repairs and replacements may be made by
          the Landlord at the Tenant's cost in like manner to the provisions of
          Section 11.02(b).

     (c)  The Landlord shall not be liable for any loss or damage to any person
          or property for its failure to repair in accordance with this Section
          11.05 unless such loss or damage is caused by the default or
          negligence of the Landlord, its agents, employees or contractors, and
          is not specifically excepted pursuant to Section 15.02.

                                                                              16

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     (e)  The Landlord shall keep painted those parts of the exterior of the
          Premises requiring painting other than any parts of the exterior as
          may have been installed by or at the request of the Tenant.

     (f)  In fulfilling its obligations pursuant to this Section 11.05, the
          Landlord shall be entitled to enter the Premises and shall act as
          expeditiously as is reasonably possible in the circumstances.

     (g)  Nothing contained in this Section 11.05 shall derogate from the
          provisions of Article 13.

                                   ARTICLE 12
                              ALTERATIONS, FIXTURES

12.01 Tenant's Alterations

     (a)  The Tenant shall not make or cause to be made any alterations,
          additions or improvements or erect or cause to be erected any
          partitions or install or cause to be installed any trade fixtures,
          exterior signs, floor covering, interior or exterior lighting,
          plumbing fixtures, shades, awnings, exterior decorations or make any
          changes to the entrance or otherwise in respect of the Premises
          without first obtaining the Landlord's written approval thereto.

     (b)  All fixtures installed by the Tenant shall be new, provided that the
          Tenant may install its usual trade fixtures in its usual manner so
          long as such installation has first been approved by the Landlord and
          does not damage the structure of the Development.

     (c)  The Tenant shall not install in or for the Premises any special locks,
          safes, apparatus for illumination, air conditioning, cooling, heating,
          refrigerating, or ventilating the Premises without first obtaining the
          Landlord's written approval thereto.

     (d)  When seeking the approval of the Landlord as required by this Section
          12.01, the Tenant shall present to the Landlord plans and
          specifications of the proposed work.

     (e)  The Tenant shall promptly pay all contractors, material suppliers and
          workmen so as to minimize the possibility of a lien attaching to the
          Premises and/or the Development and should any claim of lien be made
          or filed the Tenant shall discharge the same in accordance with
          Section 15.04.

12.02 Removal of Fixtures

     (a)  So long as the Tenant is not in default hereunder at the expiration of
          the Term, the Tenant shall then have the right to remove its trade
          fixtures but shall make good any damage caused to the Premises
          resulting from the installation or removal thereof; provided that on
          such expiration of the Term all alterations, additions, improvements
          and fixtures constructed and installed in the Premises and attached in
          any manner to the floors, walls or ceiling including any floor
          covering, light fixtures and heating, ventilating and air conditioning
          apparatus, are

                                                                              17

<PAGE>

          hereby deemed not to be trade fixtures and shall remain upon and be
          surrendered with the Premises and become the property of the Landlord
          absolutely, except to the extent the Landlord requires removal thereof
          pursuant to Section 12.02(d).

     (b)  If the Tenant fails to remove its trade fixtures and restore the
          Premises as aforesaid, all such trade fixtures shall become the
          property of the Landlord except to the extent that the Landlord
          continues to require removal thereof pursuant to Section 12.02 (d).

     (c)  Should the Tenant abandon the Premises or should this Lease be
          terminated before the proper expiration of the Term due to a default
          on the part of the Tenant then, in such event, as of the moment of
          default by the Tenant, all trade fixtures and furnishings of the
          Tenant (whether or not attached in any manner to the Premises) shall,
          except to the extent the Landlord requires the removal thereof
          pursuant to Section 12.02(d), become and be deemed to be the property
          of the Landlord, without indemnity to the Tenant and as additional
          liquidated damages in respect of such default but without prejudice to
          any other right or remedy of the Landlord.

     (d)  Notwithstanding that any trade fixtures, furnishings, alterations,
          additions, improvements, fixtures are or may become the property of
          the Landlord pursuant to the other provisions of this Section 12.02,
          the Tenant shall forthwith remove the same and shall make good any
          damage caused to the Premises resulting from the installation or
          removal thereof, all at the Tenant's expense, should the Landlord so
          require by notice to the Tenant and whether or not the Term has
          expired or otherwise been terminated.

     (e)  If the Tenant, after receipt of a notice from the Landlord pursuant to
          Section 12.02(d), fails to promptly remove any trade fixtures,
          furnishings, alterations, additions, improvements, fixtures and
          apparatus in accordance with such notice, the Landlord may enter into
          the Premises and remove therefrom all or part of such trade fixtures,
          furnishings, alterations, additions, improvements, fixtures and
          apparatus without any liability to and at the expense of the Tenant,
          which expense shall forthwith be paid by the Tenant to the Landlord.

12.03 Landlord's Alterations

The Landlord reserves the rights to:

     (a)  make changes or additions to the equipment, appliances, pipes,
          conduits, ducts or structures of any kind in the Premises where
          necessary to serve adjoining premises or other parts of the
          Development;

     (b)  alter the location and nature of the Common Areas and erect additions
          thereto or extend any part thereof;

                                                                              18

<PAGE>

     (c)  make alterations or additions to the buildings and facilities of the
          Development;

     (d)  construct other buildings or improvements in the Development from time
          to time and make alterations thereof or additions thereto;

     (e)  build additional stories on any buildings in the Development and to
          build adjoining the same;

     (f)  build adjoining the Premises, in which case if an excavation shall be
          made upon lands or premises adjacent to the Premises, or shall be
          authorized to be made, the Tenant shall afford to the person causing
          or authorized to cause such excavation, licence to enter upon the
          Premises for the purpose of doing such work as the Landlord may deem
          necessary to preserve the building of which the Premises form a part
          from injury or damage and to support same by proper foundations;

     (g)  include in the Development any second phase on adjacent property once
          such second phase is capable of being occupied;

which rights may be exercised by the Landlord in its unfettered discretion
(provided that the ingress and egress to the Premises shall not be substantially
altered or, in the event of such substantial alteration, that the Landlord has
first obtained the Tenant's written consent, not to be unreasonably withheld)
and without any claim for damages or indemnification against the Landlord, its
employees or agents and without diminution or abatement of rent except during
any period of time during which the Tenant is unable to carry on business with
the public because of the exercise of such rights by the Landlord. In the event
that such exercise results in a change in the Floor Area, the Minimum Rent
payable thereafter shall be recalculated in the manner set forth in Section 4.02
but without any adjustment with respect to any earlier payment of either Minimum
Rent or the Tenant's Proportionate Share of Additional Rent.

12.04 Adjustment of Floor Area

In the event that the Floor Area set out in Section 1.01(e) is thought by a
party to this Lease to be incorrect, such party may cause the Premises to be
measured at its expense and if a discrepancy is determined and confirmed by the
Landlord's architect, the Floor Area shall be revised accordingly with a
corresponding adjustment in Minimum Rent and the Tenant's Proportionate Share of
Additional Rent pursuant to Section 4.02.

12.05 Relocation of Premises

The Landlord reserves the right to change the location of the Premises within
the Development to new premises, the floor area of which shall not be more than
ten per cent (10%) larger than the Floor Area of the Premises unless consented
to by the Tenant. In the event of the exercise of such right by the Landlord:

     (a)  the Landlord shall endeavour to relocate the Tenant in premises of
          comparable size and quality;

     (b)  during the period of such relocation, all rent and other charges
          provided for hereunder shall abate for that period of time during
          which the Tenant is unable to carry on business with the public in the
          Development;

     (c)  the Landlord will provide, at the Landlord's

                                                                              19

<PAGE>

          expense, leasehold improvements in the new premises which are
          comparable to those in the Premises and will pay the moving costs of
          the Tenant, if any;

     (d)  should the floor area of the premises to which the Tenant is relocated
          be larger or smaller than the Floor Area of the Premises, then the
          Minimum Rent and the Tenant's Proportionate Share of Additional Rent
          shall be proportionately adjusted to reflect such greater or lesser
          area by the ratio which such increase or decrease in area bears to the
          original Floor Area of the Premises;

     (e)  the exercise of such rights shall be without recourse by the Tenant;

     (f)  at the request of the Landlord, the Tenant shall execute and deliver a
          lease of the premises to which the Tenant is relocated for the
          remainder of the Term, which lease shall contain the same terms and
          conditions as this Lease subject only to charges necessitated by
          Section 12.05(d) and an appropriate description of such premises,
          after which the parties shall release one another from any further
          obligation under this Lease.

                                   ARTICLE 13
                SUBSTANTIAL DAMAGE AND DESTRUCTION, EXPROPRIATION

13.01 No Abatement

If during the Term the building in which the Premises or any part thereof is
situate shall be destroyed or damaged by any cause whatsoever such that the
Premises are rendered unfit for occupancy by the Tenant, the rent hereby
reserved shall not abate in whole or in part.

13.02 Substantial Destruction

In the event of damage or destruction of the Premises, or of any other portion
of the Development, whether or not the Premises be affected thereby, to the
extent that, in the reasonable opinion of the Landlord's architect:

     (a)  the cost of repair, restoration or reconstruction exceeds fifty per
          cent (50%) of the replacement cost (excluding foundation and
          excavation costs) of such damaged or destroyed portions of the
          Development; and

     (b)  the repair, restoration or reconstruction cannot, with the exercise of
          reasonable diligence, be accomplished to enable such portions of the
          Development to reopen for business within six (6) months of the date
          of such damage or destruction;

the Landlord may within sixty (60) days after such damage or destruction and on
giving thirty (30) days' written notice to the Tenant declare this Lease
terminated forthwith and in such event, the Term shall be deemed to have expired
and the Tenant shall deliver up possession of the Premises accordingly, rent
shall be apportioned and shall be payable up to the date of termination stated
in such notice, and the Tenant shall be entitled to be repaid by the Landlord
any rent paid in advance and unearned or an appropriate portion thereof.

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<PAGE>

13.03 Architect's Certificate

The certificate of the Landlord's architect certifying that damage or
destruction has occurred to the extent set forth in Section 13.02 shall be
binding and conclusive upon the Tenant for the purposes hereof.

13.04 Rebuilding

If this Lease is not terminated pursuant to Section 13.02, and such damage or
destruction is insured against by the Landlord pursuant to Section 9.02, the
Landlord shall cause such damage or destruction to be repaired, restored or
reconstructed, save as to items which are the responsibility of the Tenant
pursuant to Section 11.02.

13.05 Expropriation

     (a)  If during the Term, title is taken to the whole or any part of the
          Development (whether or not such part includes the Premises) by any
          competent authority under the power of eminent domain or by
          expropriation, which taking, in the reasonable opinion of the
          Landlord, does not leave a sufficient remainder to constitute an
          economically viable business park development, the Landlord may at its
          option terminate this Lease on the date possession is taken by or on
          behalf of such authority. Upon such termination, the Tenant shall
          immediately deliver up possession of the Premises, rent shall be
          payable up to the date of such termination and the Tenant shall be
          entitled to be repaid by the Landlord any rent paid in advance and
          unearned or an appropriate portion thereof.

     (b)  In the event of any such taking, the Tenant shall have no claim upon
          the Landlord for the value of its property or the unexpired portion of
          the Term, but the parties shall each be entitled to separately advance
          their claims for compensation for the loss of their respective
          interests and to receive and retain such compensation as may be
          awarded to each respectively. If an award of compensation made to the
          Landlord specifically includes an award for the Tenant, the Landlord
          will account therefor to the Tenant.

                                   ARTICLE 14
                    ASSIGNMENT, SUBLETTING, SALE OR MORTGAGE

14.01 First Right of Refusal

In the event that the Tenant is desirous of assigning this Lease or subletting
the whole or any part of the Premises, other than to a party described in
Section 14.02(h), the Tenant shall provide the Landlord with a notice setting
forth at least the following:

     (a)  the specific terms and conditions of such proposed assignment or
          sublease;

     (b)  the identity of the proposed assignee or subtenant;

     (c)  the names and addresses of the beneficial owners of the shares of any
          proposed corporate assignee or subtenant;

     (d)  current information on the financial affairs and business experience
          of the proposed assignee or subtenant, including references;

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whereupon the Tenant shall first offer to assign or sublease, as the case may
be, to the Landlord (or to such party as the Landlord may direct), on the same
terms and conditions and for the same rental as provided for in this Lease and
subject to the express condition that the leasehold interest hereunder shall not
merge or be deemed to merge. The Landlord shall have a period of sixty (60) days
in which to accept or reject such offer and if the Landlord does not so accept,
the Tenant shall have a period of sixty (60) days thereafter in which to assign
or sublet, on obtaining the prior written consent of the Landlord as provided in
Section 14.02(a), to the said proposed assignee or subtenant and in accordance
with the terms and conditions so indicated to the Landlord. In the event that
the Tenant does not so assign or sublet within such sixty (60) day period, the
Landlord's consent to such assignment or sublease shall be deemed null and void
and the Tenant shall not be permitted to assign or sublet without again first
offering the Landlord the right of assignment or sublease pursuant to this
Section 14.01.

14.02 Assignment And Subletting

In the event that the Landlord does not accept the Tenant's offer of an
assignment or sublease pursuant to Section 14.01, the following provisions shall
apply:

     (a)  the Tenant shall not assign this Lease in whole or in part, nor sublet
          all or any part of the Premises, without the prior written consent of
          the Landlord in each instance, which consent shall not be unreasonably
          withheld so long as the proposed assignment or sublease complies with
          the provisions of this Section 14.02;

     (b)  notwithstanding any assignment or sublease, the Tenant shall remain
          fully liable on this Lease and shall not be released from performing
          any of the terms, covenants and conditions of this Lease;

     (c)  if this Lease is assigned or if the Premises or any part thereof are
          sublet or occupied by anybody other than the Tenant, the Landlord may
          collect rent directly from the assignee, subtenant or occupant, and
          apply the net amount collected, or the necessary portion thereof, to
          the rent herein reserved;

     (d)  no assignment or sublease shall be made or proposed other than to
          responsible persons, firms, partnerships or bodies corporate who are
          experienced in and agree to carry on the type of business conducted in
          the Premises by the Tenant, as set forth in Section 1.01(h), or such
          other or extended use as the Landlord may specifically permit, and who
          undertake to perform and observe the obligations of the Tenant
          hereunder by entering into an assumption agreement directly with the
          Landlord;

     (e)  no assignment or sublease shall be made or proposed if the rental or
          other consideration to be received by the Tenant from the assignee or
          subtenant exceeds the greater of that stipulated in this Lease as
          being payable by the Tenant to the Landlord or that paid previously by
          the Tenant to the Landlord hereunder, save in the event that the
          Tenant undertakes to pay such excess to the Landlord;

     (f)  the prohibition against assigning or subletting,

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<PAGE>

          without the consent required by this Section 14.02, shall be construed
          to include a prohibition against any assignment or sublease by
          operation of law;

     (g)  the consent by the Landlord to any assignment or sublease shall not
          constitute a waiver of the necessity for such consent to any
          subsequent assignment or sublease;

     (h)  the Tenant may assign this Lease or sublet the whole or any part of
          the Premises to any corporation which is a subsidiary or the parent of
          the Tenant or a subsidiary of the parent of the Tenant for such
          portion of the remainder of the Term as such corporation remains so
          related to the Tenant, without the necessity of obtaining the
          Landlord's consent, so long as the Landlord is advised in writing of
          the particulars of any such assignment or sublease and provided that
          all of the other provisions of this Section 14.02 shall remain in
          effect.

14.03 Control of Corporation

If the Tenant is a corporation, other than a corporation the shares of which are
listed on any recognized stock exchange, any change in effective control of the
corporation, directly or indirectly by a sale, encumbrance or other disposition
of shares or otherwise howsoever, shall be deemed to be an assignment of this
Lease and, accordingly, the provisions of Section 14.02 shall apply including in
particular the requirement of the Landlord's consent, which shall not be
unreasonably withheld; provided that the Landlord's consent shall not be
required for any sale or other disposition of shares by the present shareholders
to and between themselves or in the event of any transmission of shares on death
or by operation of law. If such control changes without the Landlord's written
consent being obtained, save as herein provided, then, at the option of the
Landlord, this Lease may be terminated by the Landlord by notice of termination
to the Tenant given at any time up to but not later than sixty (60) days after
the Landlord ascertains or is advised that such change has occurred. Such notice
of termination shall state the date on which the Lease shall terminate, which
shall not be less than thirty (30) days nor more than ninety (90) days following
delivery of the said notice.

14.04 Bulk Sale

No bulk sale of the goods and assets of the Tenant may take place without first
obtaining the written consent of the Landlord, which consent shall not be
unreasonably withheld so long as the Tenant and the purchaser are able to
provide the Landlord with assurances, in a form satisfactory to the Landlord,
that the Tenant's obligations hereunder will continue to be performed and
respected, in the manner satisfactory to the Landlord, after completion of the
said bulk sale.

14.05 Advertising For Sublease

For purposes of ensuring confidentiality of this Lease, the Tenant shall not
print, publish, post, mail, display broadcast or otherwise advertise or offer
the whole or any part of the Premises for the purposes of assignment, sublease,
transfer or encumbrance, and shall not permit any broker or other party to do
any of the foregoing, unless the complete text and format of any such notice,
advertisement or offer shall first have received the Landlord's written consent,
which consent shall not be unreasonably withheld. In no event shall any such
text or format contain any

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reference to the rent payable in respect of the Premises.

14.06 Subordination And Attornment

     (a)  Upon the request of the Landlord and by way of such document as may be
          required by the Landlord, the Tenant shall subordinate its rights
          hereunder to any mortgage or mortgages, or the lien resulting from any
          other method of financing or refinancing, now or hereafter in force
          against the Development or any part thereof, as now or hereafter
          constituted, and to all advances made or hereafter to be made upon the
          security thereof.

     (b)  The Tenant shall, in the event any proceedings are brought, whether in
          foreclosure or by way of the exercise of the power of sale or
          otherwise, under any mortgage or other method of financing or
          refinancing made by the Landlord in respect of the Development, attorn
          to the encumbrancer upon any such foreclosure or sale and recognize
          such encumbrancer as the Landlord under this Lease, should such
          encumbrancer so elect and require.

     (c)  No subordination or attornment as required by this Section 14.06 shall
          have the effect of disturbing the Tenant's occupation and possession
          of the Premises, provided that the Tenant is not in default hereunder
          and complies with all of the covenants, terms and conditions hereof.

14.07 Estoppel Certificate, Acknowledgements

     (a)  Whenever requested by the Landlord or an encumbrance holder or other
          third party having an interest in the Development, the Tenant shall
          promptly execute and deliver an estoppel certificate or other form of
          certified acknowledgement as to the status and validity or otherwise
          of this Lease, and the state of the rental account hereunder, and such
          other information as may reasonably be required, including a copy of
          the Tenant's most recent audited financial statements.

     (b)  The Tenant shall execute an acknowledgement of the commencement date
          determined in accordance with Section 3.02, which acknowledgement
          shall be in such form as may be reasonably required by the Landlord,
          and the Tenant shall transmit such acknowledgement to the Landlord
          forthwith.

14.08 Sale By The Landlord

The Landlord shall not sell or otherwise transfer its interest in the
Development (other than by mortgages or other encumbrances by way of security or
by way of leases of the various portions of the Development) unless the proposed
purchaser or transferee of such interest shall assume the Landlord's obligation
under this Lease and agrees that so long as it retains any interest in the
Development it will be bound by the provisions of this Lease, in which event the
Landlord shall be relieved of any obligations hereunder other than any then
current default by the Landlord; provided always that the foregoing requirements
of the Landlord shall not apply to any transfer of part only of the Development
to any municipality or other governmental or similar authority including,
without limitation, for road widenings, utility easements, easements for grades
and wires, pipes, poles, slopes or transformers and like purposes.

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                                   ARTICLE 15
                                INDEMNITY, LIENS

15.01 Tenant's Indemnity

The Tenant shall indemnify and save harmless the Landlord of and from all loss
and damage and all fines, expenses, costs, suits, claims, demands, actions and
liabilities of any kind or nature for which the Landlord shall or may become
liable, incur or suffer by reason of a breach, violation or non-performance by
the Tenant of any covenant, term or provision hereof or by reason of any
builders' or other liens for any work done or materials provided or services
rendered for improvement, alterations, or repairs made by or on behalf of the
Tenant to the Premises, or by reason of any injury occasioned to or suffered by
any person or damage to any property, by reason of any wrongful act, neglect or
default on the part of the Tenant or any of its employees, agents, contractors,
customers, licensees or invitees, save as may be caused by the default or
negligence of the Landlord or any of its employees, agents or contractors.

15.02 Personal Injury And Property Damage

     (a)  The Landlord shall not be liable or responsible in any way for any
          personal or consequential injury of any nature whatsoever that may be
          suffered or sustained by the Tenant or by any employee, agent,
          customer, licensee or invitee of the Tenant or any other person who
          may be upon the Premises, or for any loss or damage howsoever caused
          to any property belonging to the Tenant or to its employees, agents,
          customers, licensees, invitees or any other person while such property
          is in or about the Premises, save such as is caused by the default or
          negligence of the Landlord or any of its employees, agents or
          contractors not specifically excepted pursuant to this Section 15.02.

     (b)  Without limiting the generality of the foregoing, the Landlord shall
          not be liable for:

          (i)  any injury or damage of any nature whatsoever to any person or
               property caused by failure, by reason of breakdown or other
               cause, to supply adequate drainage, snow or ice removal, or by
               interruptions of any utility or other services, or by steam,
               water, rain, snow, or other substances leaking into, issuing or
               flowing into any part of the Premises or from the water, steam,
               sprinkler or drainage pipes or plumbing of the Development or
               from any other place or quarter, or for any damage caused by
               anything done or omitted to be done by any other tenant;

          (ii) any act, omission, theft, malfeasance or negligence on the part
               of any agent, contractor or person from time to time employed by
               the Landlord to perform janitor services, security services,
               supervision or any other work in or about the Premises or the
               Development;

          (iii)loss or damage, however caused, to books, records, files, money,
               securities, negotiable instruments, papers or other valuables of
               the Tenant; or

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<PAGE>

          (iv) under any circumstances, any indirect, consequential or business
               losses of the Tenant.

15.03 Landlord's Indemnity

The Landlord shall indemnify and save harmless the Tenant of and from all loss
and damage and all fines, costs, suits, claims, demands and actions of any kind
or nature for which the Tenant shall or may become liable, incur or suffer by
reason of the default or negligence of the Landlord or any of its employees,
agents or contractors not specifically excepted pursuant to Section 15.02.

15.04 Liens

The Tenant will immediately upon demand by the Landlord, remove or cause to be
removed, and thereafter institute and diligently prosecute any action pertinent
thereto, any builders' or other lien or claim of lien noted or filed against or
otherwise constituting an encumbrance on any title of the Landlord. Without
limiting the foregoing obligations of the Tenant, the Landlord may cause the
same to be removed, in which case the Tenant shall pay to the Landlord as
Additional Rent the cost thereof forthwith upon demand.

                                   ARTICLE 16
                              ENVIRONMENTAL MATTERS

16.01 Definitions

          For the purposes of this Lease:

     (a)  "Contaminants" means any pollutants, contaminants, deleterious
          substances, underground or above ground tanks, asbestos, hazardous,
          corrosive, or toxic substances or materials, special waste or waste of
          any kind or any other substance which is now or hereafter prohibited,
          controlled or regulated under Environmental laws; and

     (b)  "Environmental Laws" means any statutes, laws, regulations, orders,
          bylaws, standards, guidelines, permits and other lawful requirements
          of any governmental authority having jurisdiction over the Premises
          now or hereafter in force relating in any way to the environment,
          environmental assessment, health, occupational health, safety or
          transportation of dangerous goods and includes the principles of
          common law and equity.

16.02 Tenant's Covenants and Indemnity

          The Tenant covenants and agrees as follows:

     (a)  not to use or permit to be used all or any part of the Premises or the
          Development for the sale, storage, manufacture, handling, disposal,
          use or any other dealing with any Contaminants without the prior
          written consent of the Landlord which consent may be unreasonably
          withheld;

     (b)  to strictly comply and cause any person for whom it is in law
          responsible to strictly comply with all Environmental Laws regarding
          the use and occupancy of the Premises and the Development;

     (c)  to promptly provide to the Landlord a copy of any environmental site
          assessment, audit, report or

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<PAGE>

          test results relating to the Premises or the Development, conducted by
          or for the Tenant at any time whether on its own incentive or at the
          Landlord's request;

     (d)  at the Landlord's request, from time to time, to obtain from an
          independent environmental consultant approved by the Landlord, an
          environmental site assessment of the Premises or an environmental
          audit of the operations at the Premises, including any additional
          investigations as the environmental consultant may recommend and to
          promptly provide such written authorizations as the Landlord may
          require, from time to time, to make inquiries of any governmental
          authority regarding the Tenant and its operations at the Premises;

     (e)  to waive the requirement, if any, for the Landlord to provide a site
          profile for the Premises or the Development under the Waste Management
          Act or any regulations pursuant thereto;

     (f)  to maintain all environmental site assessments, audits, reports and
          test results relating to the Premises or the Development in strict
          confidence except as required by law or except that limited disclosure
          to the Tenant's professional advisers and lenders on a need-to-know
          basis or with the prior written consent of the Landlord which consent
          may be unreasonably withheld;

     (g)  to promptly notify the Landlord in writing of any release of a
          Contaminant or any other occurrence or condition at the Premises or
          any adjacent property which could contaminate the Premises or
          Development or subject the Landlord or the Tenant to any fines,
          penalties, orders, investigations or proceedings under Environmental
          Laws;

     (h)  on the expiry or earlier termination of this Lease, or at any time if
          requested by the Landlord, or if required by any governmental
          authority under Environmental Laws, to remove from the Premises and
          Development all Contaminants and to remediate by removal any
          contamination of the Premises, Development or any adjacent property
          resulting from Contaminants, in either case brought onto, used at or
          released from the Premises by the Tenant or any person for whom it is
          in law responsible. The Tenant shall perform these obligations
          promptly, at its own cost and in accordance with Environmental Laws.
          All such Contaminants shall remain the property of the Tenant
          notwithstanding any rule of law or other provision of this Lease to
          the contrary and notwithstanding the degree of their affixation to the
          Premises or the Development; and

     (i)  to indemnify the Landlord and its shareholders, directors, officers,
          employees, agents, successors and assigns from any and all
          liabilities, actions, damages, claims, remediation costs, recovery
          claims, losses, costs, orders, fines, penalties and expenses
          whatsoever (including without limitation, all legal and consultants'
          fees and expenses) and the costs of remediation of the Premises or the
          Development and any adjacent property arising from or in connection
          with:

          (i)  any breach of or non compliance with, the provisions of this
               Article by the Tenant; or

                                                                              27

<PAGE>

     (ii) any release or alleged release of any Contaminants onto, at, or from
          the Premises or Development related to or as a result of the use and
          occupation of the Premises, or any act or omission of, the Tenant, or
          any person for whom it is in law responsible.

16.03 Survival

     The obligations of the Tenant under this Article shall survive the expiry
     or earlier termination of this Lease.

                                   ARTICLE 17
                         DEFAULT, REMEDIES, TERMINATION

17.01 Default

If and whenever:

     (a)  the Tenant shall be in default in the payment of any rent, whether
          hereby expressly reserved or deemed as such, or any part thereof, and
          such default shall continue for ten (10) days following any specific
          due date on which the Tenant is to make such payment or, in the
          absence of such specific due date, for ten (10) days following written
          notice by the Landlord requiring the Tenant to rectify the same; or

     (b)  the Tenant's leasehold interest hereunder, or any goods, chattels or
          equipment of the Tenant located in the Premises, shall be taken or
          seized in execution or attachment, or if any writ of execution shall
          be issued against the Tenant, or the Tenant shall become insolvent or
          commit an act of bankruptcy or become bankrupt or take the benefit of
          any Act that may be in force for bankrupt or insolvent debtors or
          become involved in voluntary or involuntary winding up, dissolution or
          liquidation proceedings, or if a receiver shall he appointed for the
          business, property, affairs or revenues of the Tenant; or

     (c)  the Tenant shall vacate or abandon the Premises, or otherwise cease to
          conduct business from the Premises, or use or permit or suffer the use
          of the Premises for any purpose other than as permitted under this
          Lease, make a bulk sale of its goods and assets which has not been
          consented to by the Landlord in accordance with Section 14.04, or
          move, commence, attempt or threaten to move its goods, chattels and
          equipment out of the Premises other than in its routine course of its
          business; or

     (d)  the Tenant shall not observe, perform and keep each and every of the
          covenants, agreements, stipulations, obligations, conditions and other
          provisions of this Lease to be observed, performed and kept by the
          Tenant and shall persist in such default, in the case of monetary
          payments, beyond the ten (10) day period stipulated in paragraph
          17.01(a) aforesaid or, in the case of any other default, after
          fourteen (14) days following written notice from the Landlord
          requiring that the Tenant remedy, correct or comply or, in the case of
          any such default which would reasonably require more than fourteen
          (14) days to rectify, unless the Tenant shall commence rectification
          within the said fourteen (14) days notice period

                                                                              28

<PAGE>

          and thereafter promptly and diligently and continuously proceed with
          the rectification of any such default;

then, and in each of such cases, and at the option of the Landlord this Lease
may be terminated and the Term shall then immediately become forfeited and void,
and the Landlord may without notice or any form of legal process whatever
forthwith re-enter the Premises or any part thereof in the name of the whole and
repossess and enjoy the same as of its former estate, anything contained herein
or in any statute or law to the contrary notwithstanding.

17.02 Accelerated Rent

Should any event described in Section 17.01(b) occur, the then current month's
rent together with the rent for the three (3) months next ensuing shall
immediately become due and payable.

17.03 Landlord May Perform

If the Tenant shall fail to observe, perform or keep any of the provisions of
this Lease to be observed, performed and kept by the Tenant, and subject to
rectification within the period set out in Section 17.01(d) the Landlord may,
but shall not be obliged to, at its discretion and without prejudice, rectify
the default of the Tenant, whether or not performance by the Landlord on behalf
of the Tenant is otherwise expressly referred to in the applicable Section of
this Lease. For such purpose the Landlord may make any payment and/or do or
cause to be done such things as may be requisite including, without limiting the
generality of the foregoing, entry upon the Premises. Any such performance by or
at the behest of the Landlord shall be at the expense of the Tenant and
recoverable as Additional Rent, payment of which is to be made by the Tenant on
presentation of an invoice therefor.

17.04 Distress

If and whenever the Tenant shall be in default in the payment of any rent,
whether hereby expressly reserved or deemed as such, or any part thereof, the
Landlord may, without notice, or any form of legal process whatsoever, enter
upon the Premises and seize, remove and sell the Tenant's goods, chattels and
equipment therefrom and/or seize, remove and sell any goods, chattels and
equipment at any place to which the Tenant or any other person may have removed
them, in the same manner as if they had remained and been distrained upon the
Premises, all notwithstanding any rule of law or equity to the contrary, and the
Tenant hereby waives and renounces the benefit of any present or future Act
limiting or eliminating the Landlord's right of distress.

17.05 Costs And Interest

All expenses, costs and expenditures including, without limitation,
solicitor-client costs and accounts, incurred by the Landlord as a result of any
default by the Tenant shall forthwith on demand be paid by the Tenant as
Additional Rent together with interest, at the rate specified in Section
4.05(e), from the date any such expenses, costs and expenditures are incurred by
the Landlord until the same are fully paid and satisfied.

17.06 Vacate Upon Termination

At the termination of this Lease, whether by affluxion of

                                                                              29

<PAGE>

time or otherwise, the Tenant shall vacate and deliver up possession of the
Premises in the same condition as the Premises were in upon delivery of
possession to the Tenant, subject to the exceptions from the Tenant's obligation
to repair in accordance with Section 11.02, and subject to the Tenant's rights
and obligations in respect of removal in accordance with Section 12.02, and
shall surrender all keys to the Premises to the Landlord at the place then fixed
for payment of rent and shall inform the Landlord of all combinations on locks,
safes and vaults, if any, in the Premises.

17.07 Additional Rights On Re-Entry

If the Landlord shall re-enter or if this Lease shall be terminated, other than
by affluxion of time:

     (a)  notwithstanding any such termination or the Term thereby becoming
          forfeited and void, the provisions of this Lease relating to the
          consequences of termination shall survive;

     (b)  the Landlord may use such force as it may deem necessary for the
          purpose of gaining admittance to and retaking possession of the
          Premises and the Tenant hereby releases the Landlord from all actions,
          proceedings, claims and demands whatsoever for or in respect of any
          such forcible entry or any loss or damage in connection therewith;

     (c)  the Landlord may re-let the Premises or any part thereof for a term or
          terms which may be less or greater than the balance of the Term and
          may grant reasonable concessions in connection therewith;

     (d)  the Tenant shall pay to the Landlord upon demand:

          (i)  rent and all other amounts payable hereunder up to the time of
               re-entry or to termination, whichever shall be the latter,
               including without limitation accelerated rent as provided in
               17.02;

          (ii) such reasonable expenses as the Landlord may incur or has
               incurred in connection with the re-entering, terminating,
               re-letting, collecting sums due or payable by the Tenant,
               realizing upon assets seized, including without limitation
               brokerage, legal fees and disbursements, and the expenses of
               keeping the Premises in good order, repairing the same and
               preparing them for re-letting; and

          (iii) as liquidated damages for the loss of rental and other income of
               the Landlord expected to be derived from the Lease during the
               period which would have constituted the unexpired portion of the
               Term had it not been terminated, either:

               (A)  an amount determined by reducing to present worth at an
                    assumed interest rate of ten per cent (10%) per annum all
                    Minimum Rent and estimated Additional Rent to become payable
                    during the period which would have constituted the unexpired
                    portion of the Term, such determination to be made by the
                    Landlord, who may make reasonable estimates of when any such
                    other amounts would have become payable and may make

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<PAGE>

                    such other assumptions of fact as may be reasonable in the
                    circumstances; or

               (B)  an amount equal to Minimum Rent and estimated Additional
                    Rent for a period of six (6) months;

               whichever is the greater.

17.08 No Waiver

No provision of this Lease shall be deemed to have been waived by the Landlord
unless a written waiver from the Landlord has first been obtained and, without
limiting the generality of the foregoing, no acceptance of rent subsequent to
any default and no condoning, excusing or overlooking by the Landlord on
previous occasions of any default nor any earlier written waiver, shall be taken
to operate as a waiver by the Landlord or in any way to defeat or affect the
rights and remedies of the Landlord.

17.09 Remedies Cumulative

No reference to or exercise of any specific right or remedy by the Landlord
shall prejudice or preclude the Landlord from any other remedy, whether allowed
at law or in equity or expressly provided for herein. No such remedy shall be
exclusive or dependent upon any other such remedy, but the Landlord may from
time to time exercise any one or more of such remedies independently or in
combination. Without limiting the generality of the foregoing, the Landlord
shall be entitled to commence and maintain an action against the Tenant to
collect any rent not paid when due, without exercising the option to terminate
this Lease pursuant to Section 17.01.

17.10 Landlord Not Liable

The Landlord shall not be liable for any loss or damage to the Tenant's property
or business caused by any reasonable acts of the Landlord in exercise of its
rights and remedies hereunder.

17.11 Offer to Lease, Signs

The Landlord shall give reasonable consideration to any offer to lease the
Premises after termination of the Term, provided such offer is received from the
Tenant not later than six (6) months prior to the Termination Date set out in
Section 1.01 (f) (iii). Unless such offer is accepted by the Landlord, the
Landlord shall have the right within three (3) months prior to the termination
of the Term to place upon the Premises a notice, of reasonable dimensions and
reasonably placed so as not to interfere with the business of the Tenant,
stating that the Premises are for sale or to let and the Tenant shall not remove
or obscure such notice or permit the same to be removed or obscured.

17.12 Holding over

If the Tenant continues to occupy the Premises with the consent of the Landlord
after the expiration or other termination of the Term without any further
written agreement, the Tenant shall be a monthly lessee at a minimum monthly
rent equal to twice the minimum Rent, plus Additional Rent as herein provided
and subject always to all of the other provisions in this Lease insofar as the
same are applicable to a month to month tenancy and a tenancy from year to year
shall not be created by implication of law; provided that nothing herein
contained shall preclude the Landlord from taking action for recovery of
possession of the Premises.

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<PAGE>

17.13 Waiver of Rights Of Redemption

The Tenant hereby expressly waives any and all rights of redemption granted by
or under any present or future laws in the event of the Tenant being evicted or
dispossessed from the Premises for any cause, or in the event of the Landlord
obtaining possession of the Premises or of the Tenant's goods and chattels on
the Premises, by reason of the default of the Tenant or otherwise.

                                   ARTICLE 18
                               GENERAL PROVISIONS

18.01 Co-Covenantor

The obligations of the Co-Covenantor, if any, shall be as set out in Schedule
"D".

18.02 Approvals

No provision in this Lease requiring the Landlord's consent or approval shall be
deemed to have been fulfilled or waived unless the written consent or approval
of the Landlord relating to the particular matter or instance has first been
obtained and, without limiting the generality of the foregoing, no prior consent
or approval and no condoning, excusing or overlooking by the Landlord on
previous occasions when such a consent or approval was required shall be taken
to operate as a waiver of the necessity of such consent or approval whenever
required under this Lease.

18.03 Landlord's Performance

Notwithstanding anything in this Lease to the contrary, the Landlord shall be
deemed not to be in default in respect of the performance of any of the terms,
covenants and conditions of this Lease if any failure or delay in such
performance is due to any strike, lockout, civil commotion, war-like operation,
invasion, rebellion, hostilities, military or usurped power, sabotage,
governmental regulations or controls, inability to obtain any materials,
services or financing, Act of God, or other cause beyond the control of the
Landlord.

18.04 Relationship Of Parties

Nothing contained herein shall be deemed or construed by the parties hereto, nor
by any third party, as creating the relationship of principal and agent or of
partnership or of joint venture between the parties hereto, it being understood
and agreed that neither the provisions contained herein nor any acts of the
parties herein shall be deemed to create any relationship between the parties
other than the relationship of landlord and tenant.

18.05 Sole Agreement

This Lease and any Agreement to Lease pertaining to the Premises and executed
and delivered by or on behalf of the Tenant and the Landlord set forth all of
the warranties, representations, covenants, promises, agreements, conditions and
understandings between the parties concerning the Premises and the Development
and there are no warranties, representations, covenants, promises, agreements,
conditions or understandings, either oral or written, express or implied,
between them other than as set forth in this Lease, as modified pursuant to
Section 18.06, or the said Agreement to Lease. The provisions of the said
Agreement to Lease shall survive the execution and delivery of this Lease,

                                                                              32

<PAGE>

provided that such provisions shall be deemed to be, and survive only as,
covenants and not conditions and provided further that in the event of any
conflict or contradiction between this Lease and the said Agreement to Lease,
the provisions of this Lease shall prevail.

18.06 Modification

Except as herein otherwise provided, no subsequent alteration, amendment, change
or addition to this Lease shall be binding upon the parties unless reduced to
writing and signed by the parties. At the request of the Landlord, the Tenant
and the Co-Covenantor shall execute and deliver a modification agreement
reflecting the changes in this Lease resulting from an adjustment in Floor Area
or an extension of the Termination Date or reflecting any other alteration,
amendment, change or addition agreed to between the parties, provided that the
failure of the Tenant or the Co-Covenantor to do so shall not mean that the
Tenant or the Co-Covenantor are not bound by the provisions of this Lease with
respect to the effect of any such adjustment in Floor Area or an extension of
the Termination Date.

18.07 Costs and Registration

The Tenant shall pay to the Landlord as Additional Rent on demand, any legal
fees and disbursements incurred by the Landlord in respect of the negotiation or
preparation of this Lease. The Tenant shall not register this Lease or any
interest arising hereunder, and the Tenant agrees that the Landlord shall not be
under any obligation to deliver this Lease in registrable form.

18.08 No Brokerage Commission

As part of the consideration for the granting of this Lease, the Tenant
represents and warrants to the Landlord that no broker or agent (other than any
broker or agent authorized in writing by the Landlord) negotiated or was
instrumental in negotiating or consummating this Lease. Notwithstanding the
foregoing, any broker or agent of the Tenant shall be paid by the Tenant to the
exoneration of the Landlord.

18.09 Applicable Law, Court, Language

     (a)  This Lease shall be governed and construed by the laws of the
          Province of British Columbia.

     (b)  The venue of any proceedings taken in respect of this Lease shall be
          at Vancouver, British Columbia, so long as such venue is permitted by
          law, and the Tenant shall consent to any application by the Landlord
          to change the venue of any proceedings taken elsewhere to Vancouver,
          British Columbia.

     (c)  The parties hereto have required that the present agreement and all
          deeds, documents or notices relating thereto be drafted in the English
          language.

          Les parties aux presentes ont exige que le present contract et tout
          autre contract, document on avis afferant ou ancillaire aux presentes
          soient rediges en langue anglaise.

18.10 Construed Covenants, Severability

All of the provisions of this Lease are to be construed as covenants and
agreements. Should any provision of this Lease be or become illegal, invalid or
not enforceable, it shall be considered separate and severable from this Lease
and the

                                                                              33

<PAGE>

remaining provisions shall remain in force and be binding upon the parties
hereto and be enforceable to the fullest extent of the law.

18.11 Time

Time shall be of the essence hereof.

18.12 Notice

     (a)  Any notice to be given hereunder shall be in writing and may be either
          delivered personally or sent by prepaid, registered or certified mail
          and, if so mailed, shall be deemed to have been given three days
          following the date upon which it was mailed. The addresses of the
          parties for the purpose hereof shall be, in the case of the Landlord,
          the address of the Landlord set forth in Section 1.01 (a)(ii), with a
          copy sent to Messrs. Blake, Cassels & Graydon, Barristers &
          Solicitors, 3 Bentall Centre, Suite 2600, 595 Burrard Street,
          Vancouver, British Columbia, V7X 1L3, Attention: Mr. Jeffrey Merrick,
          and to such other party as the Landlord may require, and in the case
          of the Tenant, the address set forth in Section 1.01(b) (iii) or, in
          the event that the latter address is not so set forth, at the address
          of the Premises, with a copy sent to the Co-Covenantor, if any, and in
          the case of the Co-Covenantor, if any, at the address set forth in
          Section 1.01(c)(iii), or at such other respective address as may be
          established pursuant to Section 18.12(c). Notwithstanding the
          foregoing, during the currency of any interruption in the regular
          postal service, any notice to the Tenant may be left at the Premises
          and shall be effective upon being so left.

     (b)  Any notice or service required to be given or effected under any
          statutory provision or rules of court from time to time in effect in
          the Province of British Columbia shall be sufficiently given or served
          if mailed or delivered at the address as aforesaid or, in the case of
          a party which is a corporation, if mailed to the registered office or
          registered head office within British Columbia of that corporation.

     (c)  Any party hereto may at any time give notice in writing to another of
          any change of address of the party giving such notice and from and
          after the second day after the giving of such notice, the address
          therein specified shall be deemed to be the address of such party for
          the giving of notices hereunder.

     (d)  Notwithstanding that the copy of any notice to the Tenant is not given
          to or received by the Co-Covenantor in accordance with Section
          18.12(a), such notice to the Tenant shall be effective and valid and
          the Landlord shall have all the rights and remedies contained in this
          Lease.

18.13 Index, Headings

The index, headings and any marginal notes in this Lease are inserted for
convenience or reference only and shall not affect the construction of this
Lease or any provision hereof.

                                                                              34

<PAGE>

18.14 Number And Gender

Whenever the singular or masculine or neuter is used in this Lease, the same
shall be construed to mean the plural or feminine or body corporate where the
context of this Lease or the parties hereto may so require.

18.15 No Transfer on Bankruptcy

Neither this Lease nor any estate hereby created will pass or enure to the
benefit of any Trustee in bankruptcy or any receiver or any assignee for the
benefit of creditors of the Tenant or otherwise by operation of law.

18.16 Successors Bound

All rights and liabilities herein given to, or imposed upon the respective
parties hereto, shall extend to and bind the several respective heirs,
executors, administrators, successors and assigns of the said parties and if
there shall be more than one party described in Section 1.01(b), they shall all
be bound jointly and severally by the terms, covenants and agreements herein on
the part of the Tenant. No rights, however, shall enure to the benefit of any
assignee of the Tenant unless the assignment to such assignee has been first
approved by the Landlord in accordance with Section 14.02.

18.17 Landlord's Work and Tenant's Work

The Landlord shall complete, at its own cost and expense, the Landlord's Work
described in Schedule "E". The Tenant shall complete, at its own cost and
expense, the Tenant's Work described in Schedule "E".

18.18 Improvement Allowance

Provided the Tenant is not then in default of any of the terms, covenants or
conditions in this Lease or in the Agreement to Lease and subject to the
following provisions of this Section 18.18, the Landlord shall pay to the Tenant
an allowance (the "Allowance") in the maximum amount set out in Section 1.01(k).
It is expressly understood and agreed that the Allowance is to be paid for the
purpose of reimbursing the Tenant for its out of pocket costs in completing the
Tenant's Work during the Fixturing Period, and to the extent that such costs are
less than the Allowance, the remaining portion of the Allowance shall be forfeit
and the Tenant shall have no claim whatsoever thereto. The Allowance shall be
paid to the Tenant by the Landlord after the last to occur of all of the
following:

     (a)  the opening of the Premises for the conduct of business by the Tenant;

     (b)  the receipt by the Landlord from the Tenant of a statutory
          declaration, executed no less than 55 days after the completion of the
          Tenant's Work, stating that there are no claims of builders' lien or
          other liens or encumbrances affecting the Premises with respect to
          work, services, materials and equipment relating to the Premises, and
          that the Tenant's designers, contractors, subcontractors, workers and
          suppliers of materials and equipment have been paid in full for all
          work and services performed and materials and equipment supplied by
          them on or to the Premises (together with copies of all invoices
          confirming payment to such persons);

     (c)  receipt by the Landlord of a copy of this Lease

                                                                              35

<PAGE>

          duly executed by the Tenant and the Co-Covenantor (if any);

     (d)  receipt by the Landlord of a written notice requesting payment of the
          Allowance;

     (e)  the passage of forty-five (55) days following the completion of the
          Tenant's Work; and

     (f)  receipt by the Landlord of evidence satisfactory to the Landlord of
          the actual out of pocket costs incurred and paid by the Tenant for the
          Tenant's Work.

18.19 Tenant's Acceptance

The Tenant does hereby accept this Lease of the Premises, to be held by the
Tenant, and subject to the conditions, restrictions and covenants set forth
herein.

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

LANDLORD:

HOOP REALTY INC., by its duly
appointed agent TONKO-NOVAM MANAGEMENT LTD.

By: /s/ Paolo Pela
    ---------------------------
       Paolo Pela, President

TENANT:

OFFSHORE SYSTEMS LTD.

By: /s/ John Jacobson
    ---------------------------
     John Jacobson, Pres., CEO

                                                                              36

<PAGE>

                                    SCHEDULES

Schedule  "A"  -   Description of Premises (Site Plan with location of Premises
                   outlined in heavy black and legal description)

Schedule  "B"  -   Definitions

Schedule  "C"  -   Rules and Regulations

Schedule  "D"  -   Co-Covenantor's Obligations DELETED

Schedule  "E"  -   Landlord's Work and Tenant's Work

                                                                              37

<PAGE>

                                  SCHEDULE "A"

                             DESCRIPTION OF PREMISES

LEGAL DESCRIPTION:

Lot 16, Black X, District Lot 265, Plan 21614
City of North Vancouver, British Columbia

LOCATION OF PREMISES:

                                   BUILDING B
                                 1ST FLOOR PLAN

                                    [GRAPHIC]

                                   BUILDING B
                                 2ND FLOOR PLAN

                                    [GRAPHIC]

<PAGE>

                                  SCHEDULE "B"

                                   DEFINITIONS

In this Lease the terms defined in this Schedule "B" are used with the meanings
defined as follows:

     1.   "Additional Rent" means any and all rates, Property Taxes, other
          taxes, Common Area Costs, utility charges and other sums, amounts,
          costs, expenses and charges or increases therein relating to the
          Premises, the business of the Tenant or the Development, for which the
          Tenant is responsible, in whole or in part, in accordance with this
          Lease;

     2.   "Basic Terms" means those terms set out in Section 1.01, some of
          which are more particularly defined in this Schedule "B";

     3.   "Co-Covenantor" means the party or parties described in section
          1.01(c) and the heirs, executors, administrators and successors
          thereof;

     4.   "Common Areas" means all lands, improvements, facilities, utilities,
          installations and equipment which are provided or designated (and
          which may be altered, reconstructed, expanded or withdrawn from and
          added to such designation, all subject to the provisions of this
          Lease) from time to time by the Landlord for the use by the Tenant and
          its agents, invitees, servants, employees, licensees and customers in
          common with others and includes, without limitation, the Parking
          Areas, as defined in Section (15) of this Schedule "B"; sidewalks and
          landscaped areas; loading areas; electrical systems and equipment;
          general signs; administrative offices for the Development; mechanical
          and electrical rooms; and trash disposal facilities; except for areas
          allocated to a tenant or licensee on a reasonable or otherwise
          temporary basis while used and occupied;

     5.   "Common Area Costs" means all costs, charges and expenses of operating
          and maintaining the Development from time to time including, without
          limitation, in respect of lighting and other utilities; cleaning,
          janitorial services, snow and garbage removal; supervising, policing
          and security; operating and maintaining fixtures, machinery, equipment
          and building services; striping parking spaces and aisleways;
          landscaping maintenance; repairs and replacements, other than those
          which constitute an expense of a capital nature in accordance with
          normal accounting practice or which are necessary to remedy structural
          defects or faulty workmanship in construction or errors in design and
          engineering; periodic depreciation calculated in accordance with
          generally accepted accounting practice, upon the initial capital cost
          of and replacements to the equipment used for cleaning and maintenance
          and periodic depreciation, calculated as aforesaid, on all other
          capital costs (but not the capital costs of the original construction
          at the time when the Development was first constructed, except as
          expressly set out above); Property Taxes, if not already included in
          Additional Rent pursuant to Article 6,

                                                                               1

<PAGE>

          business taxes, place of business taxes, provincial capital taxes
          allocated by the Landlord to the Development and calculated as if the
          Development was the only asset of the Landlord, and any other taxes
          levied in respect of or fairly attributable to the Common Areas,
          together with the costs of contesting or negotiating the same;
          insurance premiums, as deemed included pursuant to Section 9.05;
          supplies and Development personnel wages and payroll expenses; plus
          management fees not to exceed standard industry management fees; but
          there shall be excluded therefrom payments of principal and interest
          under any mortgages on the Development;

     6.   "Development", means the lands described in and outlined in green on
          Schedule "A" and all buildings and improvements from time to time
          erected thereon and their appurtenances, all as the same may be
          expanded or altered in accordance with this Lease from time to time
          (including any adjacent lands and the improvements thereon which the
          Landlord elects to include, by written notice to the Tenant),
          constituting the Capilano Business Park;

     7.   "Fixturing Period" means the period set out in Section 1.01(i), during
          which the Tenant shall be entitled to access to and possession of the
          Premises for the purpose of fixturing and stocking the Premises;

     8.   "Floor Area" or floor area means the area, expressed in square feet or
          such other unit as the Landlord may determine, of each floor in each
          interior rentable premises in the Development, calculated by measuring
          from the exterior surfaces of the exterior walls and of all walls
          adjoining Common Areas, from the centre line of party or demising
          walls separating two or more rentable areas and from the lease line
          separating areas where no wall exists, all without deduction or
          exclusion for any space occupied by or used for columns, stairs,
          elevators, or other interior construction or equipment or for any
          storefront or doorway areas recessed from the lease line, the
          confirmation of which by the Landlord's architect is to be conclusive,
          and when used in respect of the Premises means the area of each floor
          in the Premises, calculated as aforesaid, as set out in Section
          1.01(e) or as the same may have been revised pursuant to Section 12.04
          or Section 12.05;

     9.   "Gross Leaseable Area" of the Development or any specified portion
          thereof means the aggregate, from time to time, of the floor areas of
          all floors and mezzanines (unless such mezzanine has been constructed
          by a tenant and is used exclusively for storage) in all interior
          rentable premises in the Development or in such specified portion, as
          the case may be;

     10.  "Landlord" means HOOPP REALTY INC., by its duly appointed agent
          TONKO-NOVAM MANAGEMENT LTD. and its successors and assigns;

     11.  "Lease" means this lease as from time to time amended in writing by
          the parties hereto;

                                                                               2

<PAGE>

     12.  "Lease Year" means, in the case of the first Lease year, the period
          beginning on the earlier of the First Day of the Term set out in
          Section 1.01(f)(ii) or the day that the Tenant's obligations to open
          for business and to pay rent commence pursuant to Section 3.02 and
          terminating twelve (12) months from the last day of the month in which
          the later of the First Day of the Term or the day of commencement of
          such obligations occurs (except that if the First Day of the Term
          occurs on the first day of a month and the day of commencement of such
          obligations falls on either the same or any prior day, the first Lease
          Year shall terminate on the day prior to the first anniversary of the
          First Day of the Term) and, in the case of each subsequent Lease Year,
          means each twelve (12) month period after the first Lease Year, the
          last of which shall terminate on the Termination Date set out in
          Section 1.01(f)(iii), as extended pursuant to Section 3,03;

     13.  "Minimum Rent" means the rent set out in Sections 1.01(g) and payable
          in accordance with Article 4;

     14.  "Notice" includes without limitation, requests, demands, designations,
          statements or other writings in this Lease required or permitted to be
          given by the Landlord to the Tenant or to the Landlord and all
          originating notices of motion, affidavits and any other ancillary
          documents in support of all legal proceedings;

     15.  "Parking Areas" means the paved portions of the Development lands
          which have been and are to be allocated for the parking of motor
          vehicles, as from time to time altered, reconstructed or expanded, and
          includes entrances, roads and other means of access thereto and any
          other parking facilities from time to time constructed in the
          Development;

     16.  "Premises" means that portion of the Development referred to in
          Schedule "A" and outlined in red thereon;

     17.  "Property Taxes" means all general, special local improvement and
          school and water taxes, levies, rates and charges from time to time
          imposed against immovable property by municipal or other governmental
          authorities having jurisdiction, exclusive of income taxes, business
          taxes, place of business taxes, estate, inheritance, succession,
          capital levy or property transfer tax, together with the costs of
          contacting or negotiating the same. (Should it be found that due to
          changes in the method of levying or collection of any tax, levy, rate
          or charge to be imposed upon immovable property or should any new tax,
          levy, rate or charge be levied or imposed in lieu of or in addition to
          those contemplated by the above definition, the Landlord and the
          Tenant hereby agree to negotiate an amendment or new provision to this
          Lease as is necessary to deal with such tax, levy rate or charge, in
          an equitable manner so as to obviate any injustice or inequity which
          shall have arisen and should the Landlord and the Tenant fail to agree
          on such amendment or new provision the same shall he settled by
          arbitration in accordance with the Commercial Arbitration Act of
          British Columbia or

                                                                               3

<PAGE>

          any like statute in effect from time to time);

     18.  "Proportionate Share of the Tenant" or the "Tenant's Proportionate
          Share" means, in respect of each item or category of Additional Rent
          relating to the Premises and any or all other rental premises in the
          Development, that proportion of the amount of such item or category of
          Additional Rent which the Floor Area of the Premises bears to Gross
          Leaseable Area of either the Development or of the portion of the
          Development, including the Premises, to which such item or category of
          Additional Rent relates, as the case may be;

     19.  "Rules and Regulations" means those rules and regulations attached to
          this Lease as Schedule "C" and all amendments and additions thereto
          made by the Landlord in accordance with this Lease;

     20.  "Tenant" means the party or parties described in Section 1.01(b) and
          the heirs, executors, administrators, successors and permitted
          assignees thereof; and

     21.  "Termination Date" means the date set out in Section 1.01(f) (iii), as
          the same may be amended pursuant to Section 3.03.

                                                                               4

<PAGE>

                                  SCHEDULE "C"

                              RULES AND REGULATIONS

1.   REFUSE

     (a)  All trash, rubbish, waste material and other garbage shall be kept
          within the Premises until the day of removal, such removal to be at
          the expense of the Tenant on a regular basis as determined by the
          Landlord.

     (b)  The Tenant shall not burn any garbage in or about the Premises or
          anywhere within the Development.

     (c)  If the Tenant's garbage is of a deteriorating nature, creating
          offensive odours, the Tenant shall utilize and maintain at its cost
          and expense, refrigerated facilities as required by the Landlord.

     (d)  The Tenant's garbage shall he placed by the Tenant in common
          containers provided by the Landlord at a location designed by the
          Landlord unless, because of the volume or nature of the Tenant's
          garbage, the Landlord requires that the Tenant provide its own
          containers at the Tenant's cost, in which case such containers shall
          be subject to approval by the Landlord and shall only be kept at a
          location designated by the Landlord.

2.   OVERLOADING, SUSPENSION

     (a)  The Tenant shall not overload any floor of the Premises in excess of
          the following:

          Ground Floor - 250 lbs. average load

                       - 500 lbs. point load

          Second Floor - 100 lbs. average load.

     (b)  The Tenant shall not hang or suspend from any wall or ceiling or roof,
          or any other part of the Development, any equipment, fixtures, signs
          or displays which are not first authorized by the Landlord.

3.   ELECTRICAL EQUIPMENT

     (a)  The Tenant shall at its sole cost and expense, install and maintain
          all necessary lighting fixtures, electrical equipment and wiring
          therefor.

     (b)  If the Tenant requires any electrical equipment which might overload
          the electrical facilities in the Premises, the Tenant shall submit to
          the Landlord plans and specifications for works required to install
          and supply additional electrical facilities or equipment to prevent
          such overloading, and shall obtain the Landlord's written approval to
          perform such works, which shall meet all the applicable regulations or
          requirements of any government or other competent authority, the
          Association of Insurance Underwriters and the Landlord's insurers, all
          at the sole cost and expense of the Tenant.

4.   PLUMBING

No plumbing facilities shall be used for any purpose other

                                                                               1

<PAGE>

than that for which they were designed, and no foreign substance of any kind
shall be thrown therein, and the expense of any breakage, stoppage or damage
resulting from a violation of this provision by the Tenant or by person for whom
the Tenant is responsible shall be borne by the Tenant.

5.   HVAC OPERATION

The Tenant shall keep the Premises at a temperature sufficiently high to prevent
freezing of water in pipes or fixtures.

6.   SIGNS, ADVERTISING, DISPLAY WINDOWS

     (a)  The Tenant shall not erect or install any  exterior signs or interior
          window or door signs or advertising media or window or door lettering
          or placards without the prior written consent of the Landlord.

     (b)  The Tenant shall not install any exterior lighting, exterior
          decorations or build any aerial or mast, or make any change to the
          exterior of the Premises, without the prior written consent of the
          Landlord.

     (c)  The Tenant shall indemnify and save harmless the Landlord from all
          claims, demands, loss or damage to any person or property arising out
          of any sign, mast aerial or other installation, notwithstanding any
          consent by the Landlord thereto.

     (d)  The Tenant shall keep all lighted signs in, upon or affixed to the
          Premises illuminated until 10:00 o'clock in the evening each day
          except Sunday, or to such other times as required by the Landlord.

     (e)  Any installation requiring the Landlord's consent which has not
          received such consent shall be subject to immediate removal without
          notice at the Tenant's cost.

7.   PARKING

     (a)  The Tenant shall cause its employees, customers and suppliers to
          comply with any parking area designations and directions by the
          Landlord as well as any time limits on parking established by the
          Landlord.

     (b)  Overnight parking is prohibited.

     (c)  The Tenant shall furnish the Landlord with Provincial automobile
          licence numbers of all motor vehicles of the Tenant and its employees
          within five (5) days after taking possession of the Premises and shall
          thereafter notify the Landlord of any changes or additions to such
          numbers within five (5) days after occurrence.

8.   DELIVERY

     (a)  The Tenant shall receive, ship, take delivery of, and allow and
          require suppliers and others to deliver or take delivery of,
          merchandise, supplies, fixtures, equipment, furnishings and materials
          only through the service and delivery facilities of the Premises in
          accordance with the reasonable directives and further rules and
          regulations of the Landlord.

                                                                               2

<PAGE>

     (b)  The Tenant shall inform suppliers of such rules and regulations
          respecting delivery so as to accommodate the ease of delivery to and
          from the Development.

     (c)  The Tenant shall remove all such merchandise and other delivered items
          from the loading area or other Common Areas immediately upon such
          delivery or shall pay such costs as may be determined by the Landlord
          for any hourly, daily or weekly temporary storage permitted by the
          Landlord.

     (d)  The Tenant shall not permit any vehicles belonging to the Tenant or
          its employees, contractors or agents to cause obstruction on the
          Parking Area or the portions of the Common Areas constituting a common
          loading area and will use its best endeavours to ensure that person
          doing business with the Tenant shall not permit any vehicles to cause
          any such obstructions.

9.   PESTS

Should the Premises become infested with rodents, vermin or the like, the Tenant
shall forthwith remedy the same and shall use, at the Tenant's cost, such pest
extermination contractor as the Landlord may direct and at such intervals as the
Landlord may require as being necessary by reason of the conditions in the
Premises.

10.  NOTICE OF ACCIDENT, DEFECTS

The Tenant shall give immediate notice to the Landlord in case of fire or
accident in the Premises or of defects therein or in any fixtures or equipment
thereon.

11.  EMERGENCY CONTACTS

The Tenant shall provide the Landlord with the names, addresses and telephone
numbers of two (2) authorized employees of the Tenant who may be contacted by
the Landlord in the event of an emergency relative to the Premises.

12.  PERMITS, LICENCES

The Tenant alone shall be responsible for obtaining, from the appropriate
governmental authority or other regulatory body having jurisdiction, whatever
permits, licences or approvals as may be necessary for the operation of its
business, the whole to the entire exoneration of the Landlord.

13.  TENANT'S WORK

Any work to be performed in the Premises by the Tenant or its contractors shall
be first approved and then made strictly in accordance with the rules and
regulations of the Landlord from time to time in respect of work by tenants
within the Development.

14.  FURTHER RULES AND REGULATIONS

For the general benefit and welfare of the Development and the tenants therein,
the Landlord may amend rules and regulations, by alteration or addition, and
such amended rules and regulations shall be binding on the Tenant.

                                                                               3

<PAGE>

                                  SCHEDULE "D"

                        OBLIGATIONS OF THE CO-COVENANTOR

                                  D E L E T E D

                                                                               1

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                                  SCHEDULE "E"

                                 DESCRIPTION OF

                        LANDLORD'S WORK AND TENANT'S WORK

Only those items designated below as Landlord's Work will be provided and
installed by the Landlord in the Premises at his expense. All other work
required in the Premises, including those items designated below as Tenant's
Work, will be provided and installed by the Tenant at his expense. In the event
that the Landlord should undertake work required by the Tenant, which is in
addition to the Landlord's Work, payment for this work shall be made by the
Tenant as outlined in Item No. 6 of this Schedule "E", the Payment Schedule. It
is understood that some of the Landlord's Work can only be undertaken
contemporaneously with or subsequent to work done by the Tenant and that certain
Landlord's Work, including correction of deficiencies, may be undertaken or
completed subsequent to the Commencement Date of the Term of the Lease executed
between the parties.

1.   BASIC BUILDING

     The Landlord will construct at his expense a basic Building, other than
     improvements to the tenant's premises, containing the leasable premises.
     The Building will conform to Group F, Division II, of the National Building
     Code and will be of concrete tilt up construction with structural steel
     framing, supporting a concrete and metal deck second floor and a metal roof
     deck with built-up roofing. Stair(s) as required by code in each tenancy
     will be supplied by the Landlord.

2.   PARKING LOT & LOADING AREA

     The Landlord will construct at his expense a parking lot, and will pave,
     stripe, landscape and suitably light same and will provide suitable access
     to and egress therefrom.

3.   LANDLORD'S WORK

     In addition to the basic building and the parking lot, the Landlord will
     provide, furnish and install the following improvements at his expense to
     the Premises:

A)   INTERIOR WALLS:

     i)   Around Windows and Storefronts:

          The Landlord will face the area around windows and storefronts on
          exterior walls with "R" 6 insulation with metal stud and gypsum board
          prepared for painting, to a height of 9ft.

     ii)  All Other Exterior Walls:

          Any walls of concrete or concrete block construction will be left fair
          faced in the Premises. Slight projections of these exterior walls may
          occur.

     iii) Interior Demising Partitions:

          Demising partitions between tenancies will be constructed by the
          Landlord, at the Tenant's expense, as Tenant premises are identified.

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The Landlord may delay applying the gypsum board to other materials selected by
the Landlord until such time as the Tenant has obtained approval of any services
located in the steel stud wall.

B)   FLOORS:

     Concrete floors with smooth trowel finish in one plane as determined by the
     Landlord.

     All floor loading shall meet the Landlord's requirements and, without
     limiting the generality of the foregoing, shall not exceed the following:

          Ground Floor:   -   250 lbs. average load
                          -   500 lbs. point load

          Second Floor:   -   100 lbs. average load

     Any openings through floors necessitated as a result of Tenant requirements
     shall be designed or located by the Landlord's Consultant and such work
     will be carried out by the Landlord at the Tenant's expense.

C)   PLUMBING:

     A cold water line and a sanitary sewer line located in the floor of each
     tenancy. When the Tenant's plumbing requirements are known, the Landlord
     will supply and install plumbing vents and a washroom exhaust system at the
     Tenant's expense.

D)   SPRINKLER:

     A sprinkler main will be roughed into each tenancy with capped tee.
     Sprinkler distribution system, as may be required by the Tenant, to be
     supplied and installed by the Landlord at the Tenant's expense.

E)   HEATING, VENTILATING & AIR-CONDITIONING:

     Gas rough-in and gas-fired unit heaters for clear height (21 feet)
     industrial space will be supplied and installed by the Landlord. Gas fire
     unit heaters to be sized at 5 BTU's/sq. ft. in 21' clear height
     industrial/warehouse space.

     Other heating, ventilating and air-conditioning as may be required by a
     Tenant beyond this basic standard is to be supplied and installed by the
     Landlord at the Tenant's expense.

F)   ELECTRICAL:

     The following electrical service will be supplied for each tenancy:

     A 600 volt - 3 phase, 4 wire service {600/347 volt) sized to provide a
     total connected load (including H.V.A.C. equipment) of 6 watts per sq. ft.
     of leasable area. This service complete with a disconnect and splitter will
     be installed on the rear wall of each tenancy. A main switch and meter base
     for each tenancy will be provided at a central electrical room.

     Where loads are in excess of this limit, the availability of additional
     electrical power shall be determined by the Landlord's Consultant. The cost
     of the installation of an increased electrical service shall be borne by
     the Tenant.

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G)   TELEPHONE:

     An empty conduit for a single telephone service will be brought to a point
     within each tenancy, the location of which shall be determined by the
     Landlord.

H)   METERS:

     Electrical meters and gas meters are to be supplied and installed by the
     utility supplying the service. Water meters may be installed by the
     Landlord at the Tenant's expense in tenancies whose consumption exceeds
     normal domestic requirements.

I)   REAR SERVICE DOOR:

     A 10' x 12' overhead door and a 3' x 6' 8" main door will be provided at
     the rear of each tenancy.

4.   TENANT'S WORK

A)   INSTALLATION:

     i)   Signs:

          A sign or signs in compliance with the provisions of the Landlord's
          standard Sign Criteria (Item 5 of this Schedule "E"), to be installed
          prior to opening for business.

     ii)  Finishes:

          Tenant's decoration, partitions, suspended ceiling, window coverings,
          floor coverings, painting, trade fixtures and furnishings shall all be
          of a standard consistent with the base Building and shall be subject
          to the Landlord's written approval, such approval not to be
          unreasonably withheld.

     iii) Floor Attachments or Modifications:

          All attachments to the floor or modifications to the floor are subject
          to the Landlord's written approval. Approved modifications shall be
          carried out by the Landlord at the Tenant's expense.

     iv)  Electrical:

          Supply and installation of all electrical wiring, fixtures and
          equipment within the Premises, including but not limited to wiring,
          lighting fixtures, circuit breakers, electrical outlets, emergency
          lighting and exit signs as required. All fluorescent light fixtures in
          finished area must be recessed and no exposed tubes will be permitted.

          Where the service capacity of 6 watts per sq. ft. is not adequate, the
          Tenant shall inform the Landlord of the service capacity required. Any
          increased service shall be installed by the Landlord at the Tenant's
          expense. The additional pro rata cost of the Landlord's electrical
          equipment shall be borne by the Tenant.

          The Tenant shall be responsible for connection and commencement of
          electrical service. Power for the operation of the Tenant's
          ventilating and air-conditioning system shall be from the Tenant's
          service.

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          The Tenant shall ensure that work conforms to the requirements of all
          regulatory electrical bodies, and the requirements of the Landlord's
          Insurance Underwriters. All Tenant electrical designs must be approved
          in writing by the Landlord's Consultant, such approval not to be
          unreasonably withheld.

     v)   Heating, ventilating, and Air-Conditioning:

          Completion of the heating, ventilating and air-conditioning system,
          consisting of, but not limited to, the necessary plumbing, H.V.A.C.
          unit(s), ducts, duct insulation, electrical wiring and controls to
          maintain temperature in sales areas, show windows, work and storage
          areas and as required for the removal of any air not suitable for
          recirculation, such as fumes and vapours.

          All heating, ventilating or cooling to suit the Tenant's requirements
          or layouts will be designed and installed by the Landlord at the
          Tenant's expense.

          The Tenant will adhere to the following minimum heating, ventilating
          and air-condition requirements:

          a)   make deducting provision to return all acceptable air directly to
               the H.V.A.C. unit for recirculation;

          b)   all contaminated air must be discharged from the building by a
               system to be designed by the Landlord's Consultant, the cost of
               such design, materials, equipment and labour to be borne by the
               Tenant;

          c)   kitchen exhaust systems shall be installed to the approval of
               I.A.O., local fire authorities and the Landlord's Insurance
               Underwriters;

          d)   in the event that the Tenant's equipment requires combustion air
               or make-up air from outside the building, the Landlord shall
               supply and install all roof or wall-mounted appurtenances. The
               Tenant shall heat or cool all make-up air in order to maintain
               design standard temperatures. The design of this system shall be
               subject to the approval of the Landlord's Consultant. The costs
               of such approval, materials, equipment and labour shall be borne
               by the Tenant.

     vi)  Sprinklers:

          Any additions or modifications to the regular grid of sprinklers
          provided by the Landlord, or to an installed modified grid approved by
          the Landlord, which are necessitated by the Tenant, shall be carried
          out by the Landlord's Contractor at the expense of the Tenant.

     vii) Suspended Improvements:

          The Tenant shall not suspend any tenant improvements from the roof
          structure, other than the ceiling, ceiling light fixtures and
          mechanical systems, without the prior written consent of the Landlord.

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     viii)Telephone:

          The cables and all work required to provide telephone service from the
          Landlord's telephone room to the Premises will be provided by the B.C.
          Telephone Company upon the Tenant's request only.

B)   OBLIGATIONS AND PROCEDURES:

     i)   Permits:

          The Tenant shall apply for, pay, procure and post all permits as
          required, including Certificate of Occupancy permit and those for
          construction work for which the Tenant is responsible. All work must
          conform to the Municipal, Provincial and federal codes latest
          editions, inspection bureaux and Insurance Underwriters' requirements.

     ii)  Tenant's Drawings and Specifications:

          Unless otherwise agreed upon by the Landlord in writing, the Tenant
          shall prepare at its sole expense design drawings by a competent
          interior designer. The Tenant shall provide within thirty (30) days
          after written notice by the Landlord, to the Landlord, seven prints
          and one sepia to 1/4 = 1'0" scale. These drawings must include but are
          not limited to the following:

          a)   Sign(s) according to the Landlord's sign Criteria.

          b)   Floor plan showing all Tenant under-floor mechanical and
               electrical installation and locations of all trade fixtures and
               furnishings.

          c)   Reflected ceiling plan showing location of light fixtures,
               heating, ventilating and airconditioning duct work, diffusers,
               and other fixtures and equipment which are located in the ceiling
               or ceiling space.

          d)   Finishing schedule describing all materials and finishes to be
               used. Sample board if requested by Landlord.

          e)   Complete specifications for electrical or mechanical equipment
               which exceeds the standard design factors previously described.

          f)   Complete electrical drawing incorporating a tabulation for total
               connected loan and loan per square foot.

          g)   Complete mechanical drawing indicating duct, diffuser and grille
               sizes and thermostat location.

     iii) Drawing Approval:

          All Tenant's Work must be in conformance with all criteria set out by
          the Landlord. Drawings must bear the stamp and signature of the
          Landlord prior to commencement of work. Tenant drawings must also be
          approved by the Landlord's Architect, Mechanical Consultant, and
          Electrical Consultant prior to commencement of work. All costs for
          such approvals shall be borne by the Tenant.

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          If the Landlord requires revisions to the Tenant's drawing and
          specification prior to giving approval, such revisions are to be made
          expeditiously by the Tenant.

     iv)  Completion of Tenant Work:

          A complete set of approved tenant drawings shall be available in the
          premises throughout the duration of Tenant's Work. All Tenant's Work
          shall be performed by competent designers and tradesmen whose labour
          union affiliations are compatible with those of others employed by the
          Landlord and his Contractors and is subject to the reasonable
          supervision of the Landlord.

     v)   Electrical Service & Garbage Removal:

          Electricity shall be available for the period of construction of the
          Premises or until the Tenant's electrical service is operational.

          Throughout the construction period garbage and packaging shall be
          collected from a single location outside the Premises, designated by
          the Landlord and disposed of.

          The Tenant shall pay the Landlord $.25/sq. ft. of floor area for the
          provision of temporary electricity and removal of waste.

     vi)  No Entry Onto Roof:

          The Tenant will not enter, nor will he permit entry onto any roof on
          the building nor make any openings in the roof or attachments thereto
          without the prior written consent of the Landlord.

     vii) Damage During Tenant's Work:

          Any damage to the Premises or the Building caused during the
          completion of the Tenant's Work by the Tenant or those for whom it is
          in law responsible (including the Tenant's contractors and
          contractors' agents) shall be repaired forthwith by or at the expense
          of the Tenant.

     viii)Declaration:

          On completion of the Tenant's Work, the Tenant shall forthwith furnish
          to the Landlord a Statutory Declaration stating that there are no
          Builder's Liens outstanding against the Premises or the Building on
          account of the Tenant's Work and that all accounts for work, service
          and materials have been paid in full with respect to all of the
          Tenant's Work, together with evidence in writing satisfactory to the
          Landlord that all assessments under the Workers' Compensation Act have
          been paid. The Landlord shall reserve the right to request
          satisfactory proof of payment of Tenant's contractors and suppliers.

     ix)  Opinion of Architect:

          The opinion in writing of the Landlord's Architect shall be binding on
          both the Landlord and the Tenant respecting all matters of dispute
          regarding the Landlord's Work and the Tenant's Work, including the
          state of completion and whether or not work is completed in a good and
          workmanlike manner.

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5.   SIGN CRITERIA

All Tenants' signage visible from the exterior is subject to the Landlord's
approval and shall comply with the following regulations:

A)   All Tenant signs are to be installed on the signband provided above the
     first floor windows at the front of each premises.

B)   A diversity of graphic and logos are encouraged. Signs are to be made up of
     individual raised channel letters; sign boxes will not be permitted. Letter
     types, logos, materials, and layout of the Tenant's sign on the signband
     are all subject to the Landlord's approval.

C)   The Landlord will provide external illumination of the signband, so
     internally illuminated Tenant signs will not be required. Should a Tenant
     require internally illuminated signs, they are to be limited to the
     following types of channel letters:

     i)   Internally illuminated plastic face with metal return.

     ii)  Internally illuminated plastic face with plastic return.

     iii) Back lit, metal face with metal return.

     The electrical supply to, and connection of, the Tenant's sign is the
     responsibility of the Tenant.

D)   The text of Tenant identification signs is to be limited to store name,
     trade name, logo, or crest. No advertising is permitted. Lettering,
     symbols, or graphics on doors or building front will be considered on the
     basis of individual merit by the Landlord.

E)   No flashing, blinking, animated, or audible signs will be permitted, nor
     any exposed light sources (with the exception of properly designed neon
     signage).

F)   All conduits, transformers, brackets, and fastenings must be completely
     concealed and sign manufacturers labels must not be visible.

G)   Rear service doors will be provided with standard identification, designed,
     supplied, and installed by the Landlord, at the Tenant's expense.

H)   Any sign erected without the approval of the Landlord may be removed by the
     Landlord at the Tenant's expense.

I)   The Tenant shall submit two copies of the shop drawings of the proposed
     sign, also two elevational drawings of the Tenant's building front (at 1/4"
     scale), showing the sign, for the Landlord's approval.

J)   The Tenant shall place no window, covering (e.g. shades, blinds, curtains,
     drapes, screens, or tinting material), stickers, signs, lettering, banners,
     or advertising or display material on or near exterior windows or doors if
     such materials are visible from the exterior of the premises, without the
     Landlord's prior written consent. Similarly, the Tenant may not install any
     alarm boxes, foil protection tape, or other security equipment on the
     premises without the Landlord's prior written consent. Any material
     violating this provision may be destroyed by the Landlord without
     compensation to the Tenant.

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6.   PAYMENT SCHEDULE

     Any equipment or work provided by the Landlord at the request and expense
     of the Tenant shall be paid by the Tenant as follows:

     i)   thirty-five percent (35%) of the amount payable shall be paid at the
          time the Tenant requests the equipment to be supplied or the work to
          be done; and

     ii)  upon substantial completion of the work, the balance of the amount
          payable shall be paid by the Tenant within fifteen (15) days after the
          receipt of a statement therefor.

     The cost of such equipment or work shall include (in addition to labour,
     material and applicable taxes) Architectural, Engineering, Landlord's and
     Contractor's fees.

     Added to the cost of such equipment or work as determined in the preceding
     paragraph shall be any costs incurred by the Landlord through changes that
     the Tenant may make or request after the Architect has incorporated the
     Tenant's approved design into the overall plans of Capilano Business Park.

     The Tenant agrees that failure to pay for any amounts payable by the Tenant
     to the Landlord under the provisions of this Payment Schedule in the manner
     provided herein shall constitute a default and shall be collectable as
     Rent.

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10.1    Consent of PricewaterhouseCoopers LLP

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                       CONSENT OF INDEPENDENT ACCOUNTANTS

We hereby consent to the use in this Registration Statement on Form 20-F of our
report dated May 10, 2002, except for notes 14 and 20, which are dated July 19,
2002, relating to the financial statements and financial statements schedules of
Offshore Systems International Ltd., which appear in such Registration
Statement.

/s/ PricewaterhouseCoopers LLP

    Chartered Accountants

    Vancouver, Canada
    July 19, 2002

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