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Exhibit 10.14  

 
 

LEASE    
    

BETWEEN 

BADENHURST-AIRWAY CENTRE LTD.  

– and – 

HOSTOPIA.COM INC.  

Airway Centre, Building II

5915 Airport Road, Mississauga 

Barbara
Lanys

Bloom & Lanys

250 Roehampton Avenue

Suite 100

Toronto, Ontario

M4P 1R9 

 
AIRWAY CENTRE, PHASE II  

	 	THIS INDENTURE made (in quadruplicate) the 30th day

of September in the year 2002.
	
 	

In pursuance of the Short Form of Leases Act

	
B E T W E E N :	

 	

 
	
 	
BADENHURST-AIRWAY CENTRE LTD.	

 
	
 	

(herein called the "Landlord")	

 
	
 	

OF THE FIRST PART	

 
	
 	

– and –	

 
	
 	
HOSTOPIA.COM INC.	

 
	
 	

(herein called the "Tenant")	

 
	
 	

OF THE SECOND PART	

 

        WITNESSETH
that in consideratioin of the rents, covenants and agreements hereinafter reserved and contained, the Landlord and the Tenant covenant and agree as follows: 

	1.
	PREMISES  

        The Landlord hereby leases to the Tenant those certain premises known as Suite No. 1100 (the "Premises"), contained in the building known as
the "Airway Centre, Building II" (the "Building"), situated on the lands having a municipal address of 5915 Airport Road, Mississauga, Ontario, and which lands are more
particularly described in Schedule "A" hereto annexed. The premises comprise all of the 11th floor of the Building and contain a Rentable Area of fourteen thousand three hundred
ninety-seven (14,397) square feet, measured in accordance with current BOMA standards and subject to remeasurement by the Landlord's Architect and is more particularly shown, for
the purpose of identification only and not by limitation or enlargement, as being outlined in red on Schedule "B" hereto annexed. 

	2.
	TERM  

        TO HAVE AND TO HOLD the Premises for and during the term (hereinafter called "the Term") of seven (7) years to be computed from the 1st day
of November, 2002 (the "Commencement Date") and from thenceforth next ensuing and fully to be completed and ended on the 31st day of October, 2009
(the "Termination Date"). 

	3.
	RENTAL  

        YIELDING AND PAYING therefore yearly and every year during the Term unto the Landlord, its successors and assigns, (or at such place or places as the
Landlord shall designate from time to time in writing) for and during each and every year of the Term hereof, a fixed annual rent as follows: 

	(a)
	For
years one (1) to three (3) of the Term, the sum of Twelve Dollars Fifty Cents ($12.50) per square foot of gross Rentable Area of the Premises per annum;

	(b)
	For
years four (4) to five (5) of the Term, the sum of Twelve Dollars Seventy-Five Cents ($12.75) per square foot of gross Rentable Area of the Premises
per annum; and 

1

  

	(c)
	For
years Six (6) to Seven (7) of the Term, the sum of Thirteen dollars ($13.00) per square foot of gross Rentable Area of the Premises per annum. 

        Said
annual rent shall be payable in equal monthly instalments in advance, without deduction, set-off or abatement on the first day of each and every month of the Term along with the
Additional Rent, if any, set out in this Lease. If the Term commences on any day other than the first or ends on any other day than the last day of the month, rent for the fractions of a month at the
commencement and at the end of the Term shall be adjusted pro-rata. Upon the execution of this Lease, the Tenant shall deliver to the Landlord an authorization note addressed to the Tenant's Canadian
Chartered Bank authorizing such bank to accept for payment pre-authorized cheques drawn on the Tenant's account by the Landlord, or its designated manager or agents, at 5935 Airport Road,
Suite 600, Mississauga, Ontario, L4V 1W5 Attention: Daniel Drimmer with a copy to Bloom & Lanys, Barristers and Solicitors (416) 485-6054 or at such
other place as the Landlord shall hereafter designate, in the amount of the monthly rental payments due hereunder or as amended from time to time under the terms of this Lease for the term as
specified in paragraph number two. 

DEPOSIT 

        The
Landlord acknowledges receipt of the sum of Fifty-Nine Thousand Six Hundred and Ninety-Three Dollars and Fifty-Seven Cents ($59,693.57) including G.S.T. (the "Deposit") paid
to Royal LePage Commercial Inc. (the "Listing Broker") in Trust. The Listing Broker shall hold these funds in an interest bearing account provided sufficient investment funds and investment
period exist) with interest accruing to the Tenant's account, bearing interest at the then current rates offered by the Listing Broker's Canadian Chartered Bank. The full amount of the Deposit
together with all accrued interest shall be applied to the first and last month's basic rent and Additional Rent. 

SECURITY DEPOSIT 

        Intentionally
Deleted. 

	4.
	DEFINITIONS  

        In this Lease the following terms shall have the following meaning ascribed to them: 

        (a)   "Total
Maintenance Costs" means the total amount of all costs, expenses or amounts incurred, whether by the Landlord or others on behalf of the Landlord, in connection
with the complete maintenance, operation, management and repair of any part of: 

	i)
	the
Premises and the Building, including the underground parking garage, of which the Premises form a part;

	ii)
	the
Common Inside Areas and Common Outside Areas and Facilities (as hereinafter defined); and

	iii)
	other
items, components and improvements used or enjoyed by the Tenant in common with others including without limiting the generality of the foregoing all fixtures,
fittings, lights, boilers, pipes, plant machinery, elevators, elevator shafts, heating and air-conditioning equipment, lobbies, entrances, stairs, passages, washrooms, walls, fences, gutters, drains,
walkways, driveways, parking areas including underground parking garage, ramps, shipping and receiving areas, flower beds, lawns and other areas situated within the limits of the lands described in
Schedule "A" attached hereto; 

which
shall include, without limiting the generality of the foregoing and without limiting the generality of the interpretation of the foregoing and without duplication, the cost of all repairs and
replacements required for such operation and maintenance; all costs in 

2

 

respect
of any heating, ventilating and air-conditioning equipment, the costs of operating and maintaining elevators; the cost of providing hot and cold water; capital tax; depreciation (in accordance
with generally accepted accounting principles from time to time) of all capital and maintenance equipment which by its nature requires periodic replacement including all heating, ventilating and air
conditioning equipment; depreciation of all capital expenditures made by the Landlord in an effort to promote energy conservation as set out in section 5(v) of this Lease; the cost of
electricity and public utilities including lighting not otherwise charged to tenants; the cost of snow, ice and refuse clearance and removal; parking lot and underground garage maintenance, repairs
and striping, landscape maintenance and window cleaning; the cost of insuring the Building of which the Premises form a part for the full cost of reinstatement against loss or damage on an "all risks"
basis (including flood and earthquake for full replacement cost with no deduction for depreciation), boiler and machinery insurance, public liability insurance and loss of rental income insurance, and
such other risks usually insured against by prudent owners of similar buildings in similar areas having regard to the location, age, nature and character of the Building, in such amounts and with such
deductibles as are usually carried; accounting costs incurred in connection with the preparation of statements and opinions for the tenants and the reasonable cost of collecting payments of all
amounts payable by tenants; the cost of providing janitor and security service and security devices for the Premises and the Building such as are in keeping with maintaining the standard of a
first-class office building; the cost of all rental equipment and building supplies used by the Landlord for all such operation and maintenance or any other purpose; including, without limitation, all
leasing fees and expenses incurred for the energy management equipment and systems and for security equipment and systems; amounts paid on service contracts; the amount of all salaries, wages and
benefits paid to or on behalf of persons engaged in cleaning, supervision, maintenance, operating, management and repair; any business taxes which may be imposed on the Landlord by reason of its
operation of the Building or parts thereof; any management fees or charges of managing agents, or the Landlord's charges in lieu thereof if the Landlord undertakes management of the Building (which
charges shall be an amount per year equal to four percent (4%) of the gross income, including all rent, Additional Rent and parking and storage rent of the Building). 

        Notwithstanding
anything else contained herein the Tenant's proportionate share of Total Maintenance Costs shall not include: (a) the cost of all structural repairs and
replacements to footings, foundations, structural columns and beams, structural sub-floors, bearing walls of the Building; (b) all sums in excess of One Thousand Dollars
($1,000.00) per annum on account of capital tax and large corporations tax; (c) costs and expenses which are capital in nature according to generally accepted accounting principles;
(d) any ground rentals and any principal, interest or any other carrying charges or mortgage payments or other financing costs in respect of the Building or any expansions thereof;
(e) costs or expenses incurred with respect to the acquisition, development, expansion and/or construction of the Building or any expansion thereof; (f) depreciation, amortization or
similar costs of capitalized assets; (g) any reserves for future expenditures or liabilities which would be incurred subsequent to the then current accounting year; and (h) the
Landlord's Work. 

        Costs
incurred as a result of the Tenant's use of HVAC beyond Normal Business Hours shall be billed to the Tenant at the pro-rated rate of $2.25 per annum per square
foot of that portion of the Rentable Area of the Premisess requiring the extra service. For the purposes hereof, the Tenant's use of HVAC beyond Normal Business Hours shall be a fraction, the
numerator which shall be the number of hours of the Tenant's use of HVAC beyond Normal Business Hours divided by the denominator which shall be 5988 hours, multiplied by the portion in square
feet of the Rentable Area of the Premises that is used for HVAC Normal Business Hours (as determined by the Landlord's Architect), all multiplied by $2.25. For greater clarity, if the Tenant
uses 1,000 hours of HVAC Normal Business Hours in a 10,000 square foot portion of the Premises it would have to pay the Landlord
(1000/5988) × (10,000) × $2.25 = $3,757.51 as determined under this lease. 

        The
Landlord covenants and agrees that: (a) all Additional Rent costs and expenses must be competitive and the work performed must be of a degree of competency to that found in
any similar class building having consideration to the size and age of the Building; (b) the Landlord will use its best efforts to maintain the Additional Rent at a minimum; and
(c) Additional Rent will be calculated, applied and 

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collected in an equitable manner from all tenants and occupants of the Building from time to time. 

        Total
Maintenance Costs shall not include interest on the Landlord's debt or Capital retirement of debt or amounts directly chargeable to capital account, except as otherwise expressly
provided herein. 

        In
calculating Total Maintenance Costs, if less than ninety-seven (97%) percent of the Building is occupied by tenants (including the Tenant), then the amount of such Total Maintenance
Costs shall be deemed to be increased to an amount equal to the amount of Total Maintenance Costs which would have been incurred had ninety-seven (97%) percent of the building been occupied by tenants
throughout the entire period from which Total Maintenance costs is being calculated. 

        With
respect to any such costs, expenses or amounts incurred on other parts of the complex containing the Building, the Landlord shall have the right from time to time to reasonably
allocate and reallocate such costs, expenses and amounts among the Building and any other buildings from time to time erected on other parts of the complex containing the Building, and the amount so
allocated to the Building shall constitute part of the Total Maintenance Costs. 

        (b)   "Proportionate
Share" means the fraction which has as its numerator the Rentable Area (which includes, in the case of premises forming part only of a floor of the
Building, the "Additional Area") of the Premises and has as its denominator the Total Rentable Area of the Building whether rented or not, subject only to the adjustments which follow. The Total
Rentable Area of the Building shall be calculated as if the Building were entirely occupied by tenants renting whole floors, and shall be the total of the Rentable Area of all premises leased or set
aside from time to time by the Landlord for leasing in the Building, and shall include the areas of all corridors, lobbies and other areas from time to time set aside by the Landlord for common use on
all floors of the Building (excluding those common areas at the ground level of the Building, such as entrance lobbies and other areas from time to time designated by the Landlord). The calculation of
the Total Rentable area of the Building whether rented or not shall be determined upon completion of the Building and shall be adjusted from time to time to give effect to any structural or functional
change affecting same. The calculation of the Rentable Area of the Premises shall be adjusted from time to time to give effect to any change therein during the Term. Provided that if any tenant,
pursuant to its lease or otherwise with the Landlord's consent performs at its own cost any service or aspect of these items, the cost of which would normally constitute a part of Total Maintenance
Costs, then the Landlord shall alter the above fraction for such services or aspects as may be necessary to provide equitable distribution of Total Maintenance Costs among the tenants provided with
the said services. 

        (c)   "Rentable
Area" means: 

	(i)
	for
Premises which comprise the whole of a floor of the Building, all areas within the inside surface of the outside walls on such floor. The Rentable Area for whole
floor Premises shall be computed by measuring to the inside surfaces of the glass our building walls, without deduction for columns and projects necessary to the Building, but shall not include
stairs, elevator shafts, or mechanical ducts supplied by the Landlord for use in common with other tenants in the Building;

	(ii)
	for
Premises which comprise part of a floor of the Building, all areas occupied by the Tenant on such floor. The Rentable Area for part floor Premises shall be computed
by measuring from and to whichever of the following form the boundaries of the Premises: the inside surface of the glass outer building walls, the centre of partitions which separate the Premises from
adjoining rentable or service areas; and the office side of corridors or other permanent partitions; all without deduction for columns and projections necessary to the Building, but shall not include
stairs, elevator shafts, or mechanical ducts supplied by the Landlord for use in common with other tenants in the Building. 

4

 

        In
calculating the Rentable Area for part floor Premises, the area of the Premises, as calculated in accordance with the foregoing formula, shall be increased by an area (the "Additional
Area") equal to the fraction of the total area of the corridors (measured to the corridor side of the corridors), elevator lobbies, service elevator lobbies, washrooms, air-conditioning rooms, fan
rooms, janitor's closets, telephone and electrical closets and other closets serving the Premises in common with other premises on such floor, which fraction has as its numerator the Rentable Area of
the Premises (calculated in accordance with the foregoing formula but without the addition of the Additional Area), and has as its denominator the sum of all Rentable Areas of all premises (calculated
in accordance with the foregoing formula but without the addition of the Additional Area), including the Premises on such floor. The common areas at the ground level of the Building, such as entrance
lobbies and other areas from time to time designated by the Landlord, shall be excluded from the foregoing calculations. 

        The
Landlord shall cause the Landlord's Architect to measure and certify the Total Rentable Area of the Building and the Rentable Area of the Premises, prior to, or as soon as reasonably
possible after, the commencement of the Term, and thereafter from time to time, as may be appropriate, throughout the Term. Such certificates issued by the Landlord's Architect shall be provided to
and be conclusive and binding upon the Tenant. Any necessary adjustments to the rent, as a result of such certificates, shall be confirmed in writing by the parties. 

        (d)   "Landlord's
Architect" means a qualified architect, engineer or Ontario Land Surveyor from time to time retained, chosen or employed by the Landlord. 

        (e)   "Common
Outside Areas and Facilities" means the walls, fences, gutters, drains, parking areas (excluding the underground parking garage), shipping and receiving areas,
driveways, walkways, flower beds, lawns and other areas situated within the limits of the lands described in Schedule "A" attached hereto, ramps and other common outside areas in or about the said
Building as may from time to time be designated by the Landlord for the use of or benefit of customers while visiting said Building or for the purpose of ingress to or egress from the demised
Premises, including without limiting the generality of the foregoing, driveways, walkways, parking facilities and landscaping outside the limits of the lands described in Schedule "A" attached hereto,
but which are facilities servicing the Building and shared with owners and occupants of the lands and premises adjoining or contiguous to the Building. With respect to parking areas (excluding the
underground parking garage), the Tenant, its employees, invitees and licensees shall not be entitled to the exclusive use of any parking space or spaces, but shall share and use the same reasonably in
common with other tenants of the Building, their employees, invitees and licensees. 

        Notwithstanding
the foregoing, the Landlord shall have the right (but shall not be obligated) during the Term of the Lease, to designate parts of the parking areas and underground
parking garage for the exclusive use of the Tenant, its employees, invitees or licensees or for the exclusive use of any other tenant or tenants of the Building, their employees, invitees or
licensees. 

        (f)    "Common
Insides Areas" means the elevators, elevator shafts, stairs, passages and washrooms, lobbies, corridors and entrances used in common by the tenants at ground
level and all other levels of the Building from time to time. 

5.     TENANT'S COVENANTS  

        The
TENANT COVENANTS with the Landlord: 

        (a)   To
pay rent. 

        (b)   And
to pay: 

	(i)
	for
all costs, including engineering services, incurred or paid by the Landlord for the alterations or modifications to either the Premises or the Building necessitated
by either the installation of Tenant's Improvements or the erection of any installations, modifications, alterations, additions or partitions made or caused to be made by the Tenant pursuant to the
provisions of sub-paragraph(s) of this paragraph five (5) including without limitations, the removal, modification, and re-installation and redesign of 

5

  

the
mechanical and electrical systems of the building, together with any affected ceiling, wall or floor areas of the Premises or the Building; 

	ii)
	all
charges for telephone, electrical current and all other utilities supplied to or used in connection with the Premises, and the total cost of any replacement of
electric bulbs, tubes, starters and ballasts in the Premises. If there are no separate meters for measuring the consumption of such utilities, the Tenant shall pay to the Landlord, in advance by
monthly instalments as Additional Rent, such amount as may be reasonably estimated by the Landlord from time to time as the cost of such utilities for the Premises. The Tenant shall advise the
Landlord forthwith of any installations, appliances or business machines used by the Tenant and consuming or likely to consume large amounts of electricity or other utilities and further on request
shall promptly provide the Landlord with a list of all installations, appliances or business machines used in the Premises, and the Landlord shall have the right to require the Tenant to install a
separate meter at the Tenant's expense;

	iii)
	costs
incurred as a result of the Tenant using the premises during periods other than 7:00 a.m. to 6:00 p.m. Monday to Friday, excluding public or
statutory holidays, which at the discretion of the Landlord may be charged to the Tenant in addition to all other charges payable under this Lease, and which when received from the Tenant will be
credited to Total Maintenance Costs. 

        (c)    And
to pay to the Landlord as Additional Rent the Tenant's Proportionate Share of Total Maintenance costs, within thirty (30) days following receipt by the Tenant of
written notice of the amount of such Tenant's Proportionate Share of Total Maintenance Costs for such year, notwithstanding that the year in question or the Term may have ended. Any amounts payable by
the Tenant to the Landlord pursuant to the provisions of this sub-paragraph (c) of this paragraph five (5) shall be determined and certified by the Landlord following the end of the calendar year for
which such amount is payable. If only part of the final calendar year is included within the Term any such amounts payable for such period shall be pro-rated accordingly and shall be paid on the date
the Term ends. Any balance remaining unpaid or any excess paid shall, notwithstanding such termination, be adjusted between the Landlord and the Tenant within a reasonable period thereafter. 

        The
Landlord shall be entitled at any time in any year, upon at least ten (10) days' notice to the Tenant, to require the Tenant to pay to the Landlord monthly, on the date for payment
of monthly rental instalments, as Additional Rent, an amount equal to one-twelfth (1/12th) of the amount estimated by the Landlord to be the amount of the Tenant's Proportionate Share of Total
Maintenance Costs for such year. The Landlord shall be entitled subsequently during such year upon at least ten (10) days' notice to the Tenant, to revise its estimate of the amount of the Tenant's
Proportionate Share of Total Maintenance Costs and the said monthly instalments shall be revised accordingly. All amounts received
under this provision in any year on account of the estimated amount of the Tenant's Proportionate Share of Total Maintenance Costs shall be applied in reduction of the actual amounts of the Tenant's
Proportionate Share of Total Maintenance Costs for such year. If the amount received is less than the actual Tenant's Proportionate Share of Total Maintenance Costs for such year, the Tenant shall pay
any deficiency to the Landlord as Additional Rent within ten (10) days following receipt by the Tenant of notice of the amount of such deficiency. If the amount received is greater than the actual
Tenant's Proportionate Share of Total Maintenance Costs, the Landlord shall either refund the excess to the Tenant as soon as possible after the end of the year in respect of which such payments were
made or at the Landlord's option shall apply such excess against any amount owing or becoming due to the Landlord by the Tenant. 

        The
Landlord shall keep proper and sufficient records of all of its costs relating to the Additional Rent and shall deliver to the Tenant within One Hundred and Eighty (180) days of the
end of each lease year throughout the Term and any renewal thereof statements for the previous lease year showing each line item comprising operating costs so that the Tenant may confirm that the
operating costs charged by the Landlord for the previous lease year have been calculated in accordance with the terms of the Lease. In the event that the Tenant has reasonable grounds to believe that
the 

6

 

operating
costs have not been so calculated, the Tenant may contest same within sixty (60) days of the receipt of such statements from the Landlord and the Landlord and Tenant will each act reasonably
and in good faith to settle such claim. In the event the parties cannot settle the dispute within sixty (60) days of the tenant's claim, the matter shall be settled by an arbitrator in accordance with
the provisions of the Arbitration Act, 1991 (Ontario), ("The Arbitration Act") as amended from time to time. 

        JANITOR
SERVICES 

        (d)    And
that the Tenant shall bear the cost of janitor services for the Premises, including without limitation, all sweeping and cleaning of carpeting, floors, windows,
blinds and furniture. Such janitor services shall be performed for or supplied to the Tenant by employees of or contractors designated by the Landlord and the cost thereof shall be borne by the Tenant
and is included in Total Maintenance Costs. The Landlord shall not be responsible for any act of omission or commission on the part of the employees or contractors or any other person employed to
perform or supply such janitor services. 

        BUSINESS
TAX AND SCHOOL TAX 

        (e)    And
to pay business and other governmental taxes, charges, rates, duties and assessments levied in respect of the Tenant's occupancy of the Premises or in respect of the
personal property or business of the Tenant on the Premises as and when the same become due and also if the Tenant or any assignee or subtenant of the Tenant shall elect to have the Premises or any
part thereof assessed for separate school taxes, the Tenant shall pay to the Landlord, as soon as the amount of the separate school taxes is ascertained. any amounts by which the separate school taxes
exceed the amount which would have been payable for school taxes had such election not been made. 

        REPAIR

        (f)    And
to repair, maintain and keep the Premises in good and substantial repair as a prudent owner would do, damage by fire, lightening, tempest, explosion, acts of God or
the Queen's enemies, structural defects and weaknesses, impact of aircraft, riots, and insurrection only excepted; and that the Landlord may enter and view the state of repair, and that the Tenant
will repair in accordance with notice in writing, save for the exception to its obligations to repair mentioned above in this sub-paragraph (f); and that the Tenant will leave the Premises in good
repair, save for the exception to its obligations to repair mentioned above in this sub-paragraph (f); provided that if the Tenant neglects to so maintain or to make such repairs promptly after
notice, the Landlord may, at its option, do such maintenance or make such repairs at the expense of the Tenant, and in any and every such case the Tenant covenants with the Landlord to pay to the
Landlord forthwith as Additional Rent all sums which the Landlord may have expended in doing such maintenance and making such repairs together with the Landlord's reasonable supervisory fees, charged
at an hourly rate, as charged by Landlords in matters of this nature; provided further that the doing of such maintenance or the making of any repairs by the Landlord shall not relieve the Tenant from
the obligation to maintain and repair. 

        REPAIR
WHERE TENANT AT FAULT 

        (g)    That
if the Building, including the Premises, the elevators, boilers, engines, pipes and other apparatus (or any of them) used for the purpose of heating or
air-conditioning the Building, operating the elevators, or if the water pipes, drainage pipes, electrical lighting or other equipment of the Building or the roof or outside walls of the Building get
out or repair or become damaged or destroyed through the negligence, carelessness or misuse of the Tenant, its servants, agents, employees or anyone permitted by him to be in the Building, or through
him or them in any way stopping up or injuring the heating apparatus, elevators, water pipes, drainage pipes or other equipment of part of the Building, the expense of all of necessary repairs,
replacements or alterations shall be borne by the Tenant who shall pay the same to the Landlord forthwith on demand together with the Landlord's reasonable supervisory fee, charged at an hourly rate,
as charged by Landlords in matters of this nature. 

        GLASS,
LOCKS AND TRIMMINGS 

7

   
        (h)    That all glass, locks and trimming of the doors and window in or upon the Premises and in or upon the interior or exterior walls or doors abutting or forming part of the
Premises shall be kept whole or whenever broken due to negligence on the part of the Tenant, its employees or invitees, shall be immediately replaced or repaired under the direction and to the
reasonable satisfaction of the Landlord and that such replacements and/or repairs shall be paid for by the Tenant. Provided that all repairs to or replacements of any locks or windows shall only be
done by a person specified by the Landlord, subject to the foregoing provisions with respect to payment for such repairs or replacement. 

ASSIGNING OR SUBLETTING 

        (i)    That
the Tenant will not, except as hereinafter permitted, assign this Lease or sublet or franchise, license, or otherwise part with or share possession of the Premises,
or any part thereof, without the Landlord's written consent and which consent shall not be unreasonably, provided nevertheless: 

	(1)
	that
the Landlord consents to the assignment, subletting, franchising, licensing, or parting with or sharing possession of the Premises as the case may be and in accordance with this
Lease, the Tenant shall pay forthwith upon receipt to the Landlord any amount the Tenant receives from an assignee or sublettee or franchisee or licensee or other person with whom it shares or parts
with possession of the Premises, as the case may be, as consideration for granting such assignment, sublet, franchise, license, or sharing of this Lease and the Premsies, as the case may be, whether
such payments are periodic or lump sum payments, or any additional amount that the Tenant receives from its sub-tenant, licensee, assignee, franchisee, or other persons with whom the Tenant shares
possession of the Premises or parts with the premises or any part thereof, over the monthly rent and Additional Rent hereby reserved; it being the express intention of the Landlord and the Tenant that
any valuable consideration received by the Tenant upon any assignment, subletting, parting with or sharing possession of the Premises or any part thereof, or licensing, or franchising, as the case may
be, in excess of the said monthly rent and Additional Rent herein reserved shall be for the account of the Landlord and shall forthwith upon receipt by the Tenant be payable to the Landlord as
Additional Rent, in addition to all other rent due to the Landlord hereunder and the Landlord shall have all rights of recovery with respect to same as the Landlord has for rent and Additional Rent.

	(2)
	Intentionally
Deleted.

	(3)
	that
if the Tenant requests the Landlord's consent to an assignment of this Lease or to a subletting, franchising, licensing, parting with or sharing possession of the whole or any
part of the Premises to or with any person, firm or corporation the Tenant shall submit to the Landlord the name of the proposed assignee, subtenant, franchisee, licensee, or other person and such
information as to the nature of its business and its financial responsiblitity and standing as the Landlord may reasonably require. Upon the receipt of such request and information from the Tenant the
Landlord shall have the right, exercisable in writing within fourteen (14) days after such receipt, to cancel and terminate this Lease if the request is to assign this Lease or to sublet,
franchise, license or otherwise part with or share possession of all the Premises or, if the request is to assign, sublet, franchise, license or other part with or share possession of a portion of the
Premises only, to cancel and terminate this Lease with respect to such portion, in each case as of the date set forth in Landlord's notice of exercise of such right, which shall be neither less than
sixty (60) nor more than one hundred and twenty (120) days' following the service of such notice. If the Landlord shall exercise such right the Tenant shall surrender possession of the entire Premises
or the portion which is the subject of the right, as the case may be, on the date set forth in such notice in accordance with the provision of this Lease relating to surrender of the Premises at the
expiration of the Term. If this Lease shall be cancelled as to a portion of the Premises only, the rent payable by the Tenant under 

8

 

this
Lease shall be abated proportionately. If the Landlord shall not exercise the right to cancel this Lease as above provided after the receipt of the Tenant's written request, the Landlord's
consent to such request shall not be unreasonably withheld. In no event shall any assignment, subletting, franchising, licensing or otherwise parting with or sharing possession to which the Landlord
may have consented or for which the Landlord's consent is not required, release or relieve the Tenant from its obligations fully to perform all the terms, covenants, and conditions of this Lease on
its part to be performed. 

	(4)
	all
reasonable costs of the Landlord in respect of any such assignment or sublease or other dealing with this Lease or the Premises shall be forthwith paid upon demand as Additional
Rent by the Tenant or tis assignee, subtenant, franchisee or licensee, such reasonable costs of the Landlord shall include a Four Hundred Dollar ($400.00) administration fee, and the Landlord's
solictors reasonable legal fees;

	(5)
	the
Tenant shall not advertise or allow the Premises or a portion thereof to be advertised as being available for assignment, sublease or otherwise without the prior written approval
of the Landlord as to the form and content of such advertisement, which approval shall not be unreasonably withheld, provided that no such advertising shall contain any reference to the rental rate of
the Premises.

	(6)
	Intentionally
Deleted.

	(7)
	any
proposed assignee, subtenant, franchisee, licensee or other person or corporation sharing or taking possession of the Premises shall execute an agreement with the Landlord in
writing and under seal in a form acceptable to the Landlord to perform and be bound by all of the Tenant's obligations and covenants set out in the Lease;

	(8)
	no
consent of the Landlord hereunder shall be effective unless given in writing to the Landlord, and no such consent shall be presumed from any act or omission of the Landlord and in
particular by the acceptance by the Landlord of payment of any amount payable hereunder by any party other than the Tenant. No consent by the Landlord shall constitute a waiver of the requirement to
obtain the Landlord's consent to any subsequent or other assigning, subletting, franchising, licensing or parting with possession of the Premises.

	(9)
	The
foregoing restrictions on assigning and subletting shall apply to any mortgaging, charging or otherwise dealing with the Lease or the Premises for the purpose of securing any
obligation of the Tenant. 

RULES AND REGULATIONS 

        (j)    That
the Tenant and its employees and all persons visiting or doing business with them on the Premises shall be bound by and will observe and perform the Rules and
Regulations annexed hereto as Schedule "C" and any further and other Rules and Regulations of general application to the Building and/or its use made hereafter by the Landlord of which notice in
writing shall be given to the Tenant and all such Rules and Regulations shall be deemed to be incorporated and form part of this Lease. 

USE OF PREMISES AND INSURANCE 

        (k)    That
the Premises shall be used only for the purpose of an office and the Tenant will not carry on or permit to be carried on therein any other trade or business and
that the Tenant will not do or omit or permit to be done or omitted upon the Premises anything which shall cause the rate of insurance upon the Building to be increased or any insurance policy on the
Building to be cancelled and if the Tenant shall be in breach of these provisions, the Tenant shall not only be responsible for all consequences flowing therefrom and shall indemnify the Landlord in
respect thereof, but; 

9

  

	(i)
	if
the rate of insurance on the Building should be increased by reason of the use made of the Premises or by reason of anything done or omitted or permitted to be done
or omitted by the Tenant, or by anyone permitted by the Tenant to be upon the Premises, the Tenant will pay to the Landlord on demand the amount of such increase which amount shall be recoverable as
rent; and

	(ii)
	if
the insurance policy upon the Building should be cancelled by the insurer by reason of the use or occupation of the Premises or any part thereof by the Tenant or by
an assignee or subtenant of the Tenant or by anyone permitted by the Tenant to be upon the Premises the Landlord may at its option, determine the Term forthwith by leaving upon the Premises notice in
writing of its intention so determining the Term and thereupon rent and any other payments for which the Tenant is liable under this Lease shall be apportioned and paid in full to the date of such
determination and the Tenant shall immediately deliver up possession of the Premises to the Landlord and the Landlord may re-enter and take possession of the same. 

Provided
that subject to the provisions of the next above paragraph hereof, if the amount of any insurance premium payable by the Landlord in respect of the said Premises in any calendar year shall
exceed the amount of said insurance premium payable in the list calendar year of the Term hereby demised due to no fault of the Tenant, the Tenant shall pay its proportionate share of such increase
forthwith upon its becoming due and payable. If the Tenant fails to pay its proportionate share of such increase promptly, the Landlord may pay the same and such amount paid by the Landlord shall
constitute rent in arrears under this Lease. 

	(iii)
	The
Tenant shall have access to the Premises, twenty-four (24) hours a day, seven (7) days a week. 

OBSERVANCE OF LAW 

        (l)    In
its use and occupation of the Premises, not to violate any and to comply with every law, by-law, ordinance, order, rule, regulation or requirement of any federal,
provincial, or municipal government or any department, commission, board or officer thereof and with any application, regulation or order of the Canadian Underwriters Association, or anybody having a
similar function, or of any liability or fire insurance company by which the Landlord or Tenant may from time to time be insured. 

ASHES, REFUSE, ETC. 

        (m)  That
the Tenant shall not use any outside garbage or other containers, nor allow any ashes, refuse, garbage or other loose or objectionable material to accumulate in or
about the Premises and will at all times keep the Premises in a clean and wholesome condition. The Tenant further covenants that the Tenant will not upon the termination of the Term leave upon the
said Premises any rubbish or waste material and will leave the said Premises in a clean and tidy condition. 

WASTE AND NUISANCE 

        (n)   Not
to make or suffer any waste or cause or allow to be caused any damage, disfiguration or injury to the Premises or the fixtures and equipment thereof or permit or
suffer any overloading of the floors thereof; and not to use or permit to be used any part of the premises for any dangerous, noxious or offensive trade, business or other activity, and not to cause
or maintain any nuisance in, at or on the Premises. 

ENTRY BY LANDLORD 

        (o)   To
permit the Landlord or its agents to enter upon the Premises at any reasonable time and from time to time for the purpose of inspecting and of making repairs,
alterations, or improvements to the Premises, or to the Building and the Tenant shall not be entitled to compensation for any inconvenience, nuisance or discomfort occasioned thereby; provided that
the foregoing shall be done in such a manner as to interfere as little as is reasonable with the Tenant's business. 

10

 

INDEMNITY 

        (p)   To
indemnify and save harmless the Landlord against and from any and all claims by or on behalf of any person or persons, firm or firms, corporation or corporations
arising from or out of any act or negligence of the Tenant or any assignee, subtenant, agent, contractor, servant, employee or licensee of the Tenant and against and from all costs, counsel fees,
expenses and liabilities incurred in connection with any such claims or any actions or proceeding brought thereon. 

FLOOR PLAN 

        (q)   That
the Tenant acknowledges and agrees that the floor plan annexed hereto as Schedule "B" and whereon the Premises are identified in red is provided for ready
reference only, and that in the event of any discrepancy between the Premises as referred to in the provisions of this Lease and the Premises as identified in the Schedule "B", the provisions
of this Lease shall govern. 

EXHIBITING PREMISES 

        (r)   To
permit the Landlord or its agents to exhibit the Premises to prospective tenants during normal business hours of the last twelve (12) months of the Term. 

ALTERATIONS 

        (s)   That
the Tenant will not, without prior written consent of the Landlord, make or erect in or to the Premises any installations, alterations, additional partitions,
repairs or improvements, or do anything which might affect the proper operation of the electrical, lighting, heating, ventilating, air-conditioning, sprinkler, fire protection or other systems; the
Tenant's request for such consent shall be in writing and accompanied by an adequate description of the contemplated work, and where appropriate, working drawings and specifications therefore, the
Landlord's out of pocket costs of having its architects, engineers or others examine such drawings and specifications shall be payable by the Tenant upon demand as Additional Rent; the Landlord may
require that any or all work to be done hereunder be done by the Landlord's contractors or workmen or by contractors or workmen engaged by the Tenant but first approved by the Landlord, and all work
shall be subject to inspection by and the reasonable supervision of the Landlord and shall be performed in accordance with all laws and any reasonable conditions (including a reasonable supervision
fee of the Landlord to be paid by the Tenant) imposed by the Landlord and completed in a good and workmanlike manner and with reasonable diligence in accordance with the approvals given by the
Landlord; any connection of apparatus to the Building systems shall be deemed to be an alteration within the meaning of this paragraph; the Tenant shall, at its own cost and before commencement of any
work, obtain all necessary building and other permits and keep same in force and the Tenant shall promptly pay all charges incurred by it for any work, labour, materials or services and shall
forthwith discharge any liens resulting therefrom; if the Tenant fails to so discharge any liens, the Landlord may (but shall be under no obligation to) pay into court the amount required, or
otherwise obtain a discharge of the lien in the name of the Tenant and any amount so paid together with all costs incurred in respect of such discharge shall be payable by the Tenant to the Landlord
forthwith upon demand plus interest on all such amounts at the rate hereafter set out in this Lease; the Tenant shall not create any mortgage, conditional sale agreement, or other encumbrance in
respect of its Leasehold improvements or trade fixtures nor shall the Tenant lease the same from any third party subject to the Landlord's approval not to be unreasonably withheld or delayed. 

SIGNS 

        (t)    That,
except as otherwise permitted in this Lease, the Tenant will not paint, display, inscribe or affix any sign, picture, advertisement, notice, lettering or direction
on any part of the outside or inside of the Building or on the Premises provided that at the request of the Tenant, the Landlord will install a sign showing the name of the Tenant to be placed on or
adjacent to the Tenant's entrance door and insert the Tenant's name on the directory board on the ground floor of the Building; the colour, size, style, character and material of such signs shall be
such as the Landlord shall determine (in building-standard form) and the cost of such signs shall be paid by the Landlord. 

11

   
        Throughout the Term and any renewals thereof the Tenant shall have signage rights to the Building and the Tenant shall have the exclusive right to install a minimum of one (1) sign on
the exterior southern elevation of the Building, at its sole cost and expense and in accordance with governing building codes. 

        Throughout
the Term and any renewals thereof, the Tenant shall have the right to assign the Building signage to an approved sub-tenant or assignee provided such sub-tenant or assignee
actually occupies at least fifty percent (50%) of the Premises. Any signage shall be subject to the prior approval of the Landlord, not to be unreasonable withheld or delayed, and shall conform to any
applicable municipal by-laws or provincial requirements. 

        NAME
OF BUILDING 

        (u)    Not
to refer to the Building by any name other than that designated from time to time by the Landlord nor use the name of the Building for any purpose other than that of
the business address of the Tenant. 

        ENERGY
CONSERVATION 

        (v)    To
co-operate with the Landlord in conserving energy of all types in the Building, including complying at the Tenant's own cost with all reasonable requests and demands
of the Landlord made with a view to energy conservation; the depreciation of any reasonable capital expenditures made by the Landlord in an effort to promote energy conservation shall be added to
Total Maintenance Costs in the year such expenditures are incurred. 

        CERTIFICATES

        (w)    That
the Tenant will at any time and from time to time, at no cost to the Landlord, and upon not less than five (5) days' prior notice, execute and deliver to the
Landlord or such other parties as designated by the Landlord, a statement in writing certifying that this Lease is unmodified and in full force and effect (or if modified stating the modifications and
that the Lease is in full force and effect as modified), the amount of annual rental then being paid hereunder, the dates to which the same, by instalments or otherwise, and other charges hereunder
have been paid, whether or not there is any existing default on the part of the Landlord of which Tenant has notice, and any other information reasonably required. 

        TENANT
INSURANCE 

        (x)    At
its expense to maintain in force during the Term and any renewal thereof: 

	i)
	comprehensive
general liability insurance against claims for personal injury, death or property damage arising out of all operations of the Tenant (including Tenant's
legal liability, personal liability, property damage and contractual liability to cover all indemnities and repair obligations) with respect to the business carried on in and from the Premises, in
amounts required by the Landlord and any mortgagee of the Building or any part thereof from time to time but in no event less than THREE MILLION DOLLARS ($3,000,000.00) per occurrence;

	ii)
	all
risks direct damage insurance, covering all chattels and fixtures and all leasehold improvements, installations, additions and partitions made by the Tenant or by
the Landlord at the Tenant's expense, in an amount equal to the full replacement value thereof; and

	iii)
	such
other forms, amounts and coverages of insurance as may be reasonably required by the Landlord and any mortgagee from time to time. All such insurance shall be with
insurers and upon such terms and conditions as the Landlord reasonably approves, and copies of the certificate of insurance and renewal thereof shall be delivered to the Landlord; all such policies
shall include the Landlord and any mortgagees as named insureds as their interests may appear, and shall contain a cross-liability clause protecting the Landlord in respect of claims by the Tenant as
if the Landlord were separately insured; all such policies shall 

12

 

also
contain a provision prohibiting the insurer from altering or cancelling the coverage without first giving the Landlord thirty (30) days prior written notice thereof; if the Tenant fails to take
out and maintain in force such insurance, the Landlord may do so and pay the premiums and the Tenant shall pay to the Landlord the amount of such premiums forthwith upon demand. If both the Landlord
and the Tenant have claims to be indemnified under any such insurance, the indemnity shall be applied first to the settlement of the Landlord's claim and the balance, if any, to the settlement of the
Tenant's claim. 

        SALES
TAX 

        (y)    Notwithstanding
any other provisions of this Lease to the contrary, the Tenant shall pay to the Landlord an amount equal to any and all goods and services taxes, sales
taxes, value added taxes, or any other taxes imposed on the Landlord with respect to Net Rent, Additional Rent or any other amounts payable by the Tenant to the Landlord under this Lease whether
characterized as a goods and services tax, sales tax, value added tax, or otherwise (and shall hereinafter be referred to as "Sales Taxes"). It is the intention of the parties that the Landlord shall
be fully reimbursed by the Tenant with respect to any and all Sales Taxes payable by the Landlord. The amount of such Sales Taxes so payable by the Tenant shall be calculated by the Landlord in
accordance with the applicable legislation and shall be paid to the Landlord at the same time as the amounts to which such Sales Taxes apply are payable to the Landlord under the terms of this Lease
or upon demand at such other time or times as the Landlord from time to time determines. Notwithstanding any other provision in this Lease to the contrary, the amount payable by the Tenant under this
paragraph shall be deemed not to be net Rent or Additional Rent, but the Landlord shall have all of the same remedies for and rights of recovery of such amount as it has for recovery of rent under
this Lease. 

        SMOKING

        (z)    Not
to permit or allow its servants, agents, employees, invitees, licensees, guests or anyone for whom the Tenant is in law responsible to smoke cigarettes, cigars,
pipes or any other tobacco product in or about the Common Outside Areas and Facilities or the Common Inside Areas. 

	6.
	TAXES

	(a)
	In
this Lease:

	i)
	"Municipal
Taxes" includes all taxes, rates, duties, levies and assessments whatsoever whether municipal, parliamentary or otherwise, charged upon the lands described in Schedule "A"
hereto annexed or upon any buildings, erections or installation thereon annexed or upon any buildings, erection or installation thereon on therein, including underground parking garage, or charged
upon the Landlord on account thereof, including Municipal Taxes or local improvements or similar charges, and school taxes (whether for public or separate schools) but does not include business taxes
that may hereafter be levied upon or in respect of the Tenant's business at the Premises whether or not the same are collectible by the Landlord or a charge on said lands. Where parking, shipping and
receiving, landscaped and other common areas forming part of the lands described in Schedule "A" hereto are assessed separately from the Premises and other leasehold space on the said lands,
"Municipal Taxes" shall also include taxes in the year in question levied or charged upon or attributable to the assessed value of the same and any business taxes or tax in lieu thereof now or
hereafter levied upon the Landlord in respect of such parking, shipping and receiving, landscaped or other common areas. With respect to any such Municipal Taxes and similar taxes on lands adjoining
the lands described in Schedule "A", the Landlord shall have the right from time to time to reasonably allocate and reallocate same among the Building and all such adjoining lands, and the amount so
allocated to the Building and the lands described in Schedule "A" shall constitute Municipal Taxes. 

13

  

	ii)
	"Year"
shall mean the calendar year. 

        (b)    The
Tenant covenants to pay the Tenant's Proportionate Share of Municipal Taxes, if any, during each Year of the Term to the Landlord as Additional Rent within ten
(10) days following receipt by the Tenant of written notice of the amount owing notwithstanding that the Year in question or the Term of this Lease may have ended. If in any Year after initial
determination of the Tenant's Proportionate Share of Municipal Taxes for that Year by the Landlord, such amount is increased by reason of the issue of supplemental assessment notices or tax or both,
or other variation in the basis upon which the Tenant's Proportionate Share of Municipal Taxes is calculated, the Landlord shall, as often as necessary, recalculate the Tenant's Proportionate Share of
Municipal Taxes for that Year and if the amount of the Tenant's Proportionate Share of Municipal Taxes for that Year is more than originally calculated, the Tenant convenants to pay such excess
(together with the original calculated amount of the Tenant's Proportionate Share of Municipal Taxes for that Year if not already paid) as Additional Rent as aforesaid. 

        (c)    The
Landlord shall be entitled in any year, upon at least ten (10) days' notice to the Tenant to require the Tenant to pay monthly, during the twelve
(12) months of each Year, on the date for payment of monthly rental instalments and in addition thereto, as Additional Rent, an amount equal to one-twelfth (1/12th) of the amount
estimated by the Landlord to be the amount of the Tenant's Proportionate Share of Municipal Taxes for such Year. The Landlord shall be entitled subsequently during the year upon at least ten
(10) days' notice to the Tenant to revise its estimate of the amount of the Tenant's Proportionate Share of Municipal Taxes and the said monthly payment accordingly. All amounts received under
this provision in any Year on account of the estimated amount of the Tenant's Proportionate Share of Municipal Taxes shall be applied in reduction of the actual amount of the Tenant's Proportionate
Share of Municipal Taxes for such Year. If the said amounts received are less than the actual amount of the Tenant's Proportionate Share of Municipal Taxes, the Tenant shall pay the deficiency to the
Landlord as Additional Rent within ten (10) days following receipt by the Tenant of notice of the amount of the deficiency. If the said amounts received are greater than the actual amount of
the Tenant's Proportionate Share of Municipal Taxes, the Landlord shall refund the excess to the Tenant within a reasonable time after the end of the year in respect of which the payments were made. 

        (d)    If
the Term shall commence, end or be determined on any day other than the first or last days of a Year, the Tenant shall be liable only for a portion of the amount of
the Tenant's Proportionate Share of Municipal Taxes for such Year, determined on a per diem basis by dividing the amount of the Tenant's Proportionate Share of Municipal Taxes for such Year by 365 and
multiplying the quotient so obtained by the number of days in the Term falling in the Year in question. If however, during the Year in question, more than one assessed value or more than one mill rate
shall have been attributed to the Premises, the year shall be divided into periods in each of which one assessed value and one mill rate are applicable, and the Landlord shall determine the portion of
the amount of the Tenant's Proportionate Share of Municipal Taxes for such Year to be attributed to each such period which shall be a fraction (in the ratio that the number of days in the period bears
to the number of days in the Year) of the amount of the Tenant's Proportionate Share of Municipal Taxes which would have occurred had this Lease and the assessed value and mill rate for the period
been in effect for the entire
Year. Where a period falls entirely within the Term of this Lease, the portion of the amount of the Tenant's Proportionate Share of Municipal Taxes so attributed thereto shall be borne entirely by the
Tenant; where a period falls partly within and partly Outside the Term of the Lease, the portion of the Tenant's Proportionate Share of Municipal Taxes so attributed thereto shall be apportioned
between the Landlord and the Tenant on a per diem basis; where a period falls entirely outside the Term, the portion of the amount of the Tenant's proportionate Share of Municipal Taxes so attributed
thereto shall be borne entirely by the Landlord; where a period falls partly within and partly outside the Term of the Lease, the portion of the Tenant's Proportionate Share of Municipal Taxes so
attributed thereto shall be apportioned between the Landlord and the Tenant on a per diem basis. 

        (e)    In
calculating Municipal Taxes, if less than ninety-seven percent (97%) of the Building is occupied by tenants (including the Tenant), then the amount of
such Municipal Taxes shall be adjusted to be an mount equal to the amount of Municipal Taxes, which would have been incurred had ninety-seven percent (97%)of the Building 

14

 

been
occupied by tenants throughout the entire period for which Municipal Taxes are being calculated. 

        (f)    With
respect to any Municipal Taxes and any similar taxes on other parts of the complex containing the Building and any other building from time to time erected on other
parts of the complex containing the Building, the Landlord shall have the right from time to time to reasonably allocate and reallocate such Municipal Taxes among the buildings (including the
Building) in the complex built or to be built from time to time and amongst the various phases and any portion or portions of the complex remaining vacant or not built upon, and the amounts so
allocated to the Building shall constitute Municipal Taxes. 

        (g)    Notwithstanding
the foregoing; 

	i)
	If
the Tenant or assignee, sublessee, franchisee, licensee, or other occupant of the Premises elects or causes the Premises to be assessed for separate school taxes, the
Tenant shall pay to the Landlord forthwith upon demand the amount, if any, by which Municipal Taxes have been increased on account of the foregoing;

	ii)
	If
the Tenant or assignee, sublessee, franchisee, licensee, or other occupant of the Premises installs or has installed on its behalf Leasehold Improvements, fixtures or
equipment that cause the Premises to be assessed or taxed at a higher rate or amount than other premises in the Building, the Tenant shall pay to the Landlord forthwith upon demand the amount, if any
by which Municipal Taxes have been increased on account of the foregoing;

	iii)
	If
the Premises are separately assessed, the Landlord may calculate the Tenant's Proportionate Share of Municipal Taxes based on such separate assessment together with
the Tenant's Proportionate Share of Municipal Taxes on all Common Inside Areas and Common Outside Areas and Facilities if the Landlord deems it more appropriate to do so. 

7.    RECOVERY OF ADJUSTMENTS  

        The Landlord shall have (in addition to any other right or remedy) the same rights and remedies in the event of default by the Tenant in payment of any amount
payable by him pursuant to paragraph 6, or any other provision of this Lease, as the Landlord would have in the case of default in payment of rent. 

8.    QUIET ENJOYMENT  

        The Landlord covenants with the Tenant for quiet enjoyment. 

9.    LIENS  

        The Tenant will not suffer or permit during the Term any construction or other liens for work, labour, services or materials ordered by him or for the cost of
which it may be in any way obligated to attach to the Premises or to the Building or to the lands upon which the Building is situated and that whenever and so often as any such liens shall attach or
claims therefor be filed the Tenant shall within fifteen (915) days after the Tenant has notice of the claim for lien obtain the discharge thereof by payment or by giving security or in such
other manner as is or may be required or permitted by law. 

10.    LANDLORD'S COVENANTS  

        The Landlord further covenants with the Tenant: 

        TAXES

	(a)
	To
pay, subject to the provisions of paragraph 6 hereof, all municipal property taxes (including local improvement rates), rates, duties and assessments that may be charged,
levied, rated or assessed against the Premises. 

15

  

LIGHTING, HEATING AND AIR-CONDITIONING 

	(b)
	To
provide lighting to the Premises and the Building of which the Premises form a part including the Common Inside Areas and Common Outside Areas and Facilities and to provide heating
and air-conditioning to the Premises to an extent sufficient to maintain therein a reasonable temperature at all times during normal business hours, which are defined as between 7:00 a.m. and
6:00 p.m., Monday through Friday, excluding public or statutory holidays, except during the making of repairs but should the Landlord make default in providing such services, it shall not be
liable for any other or greater damages that the monies (if any) expended by the Tenant in providing such services for the Premises and in no event shall the Landlord be liable for indirect or
consequential damages or personal discomfort or illness suffered by the Tenant, its servants, agents or employees or any other persons using the Premises arising out of any default of the Landlord in
providing lighting, heating and/or air-conditioning of the Premises. 

CARETAKING 

	(c)
	To
maintain and keep clean all public areas in the Building, but, except as to the obligations to cause such maintenance and cleaning to be done, the Landlord shall not be responsible
for any act of omission or commission or for any negligence on the part of the person or persons employed to perform such work, nor shall the Landlord have any responsibility to provide any such
services with the Premises. 

ACCESS 

	(d)
	To
permit the Tenant and the employees of the Tenant and all persons lawfully requiring communication with them to have the use at reasonable times in common with others of the main
entrance of the Building and the stairways and corridors leading to the Premises; provided that the Landlord may maintain reasonable security measures in the Building to prevent unauthorized persons
entering the Premises and the Building after normal business hours which are defined as between 7:00 a.m. and 6:00 p.m. Monday through Friday, excluding public or statutory holidays
("Normal Business Hours"). 

WASHROOMS 

	(e)
	To
permit the Tenant and the employees of the Tenant in common with others entitled thereto to use the washrooms in the Building. 

ELEVATORS 

	(f)
	To
furnish, during Normal Business Hours, as hereinbefore defined, except when repairs are being made, elevator service and to permit the Tenant and the Tenant's employees and
invitees to have free use of such elevator service in common with others entitled thereto, but the Tenant and such employees and all other persons using such service shall do so at their sole risk and
under no circumstances shall the Landlord be held responsible for any damage or injury happening to any person while using the elevator or occassioned to any person while using the elevator or any of
its appurtenances; the use of such elevator and all deliveries to the Premises shall be in the manner and at the times designated from time to time by the Landlord. 

ADDITIONAL RENT 

	(g)
	The
Landlord represents and warrants that the total Additional Rent for the Building's 2002 fiscal year is realistically estimated to be Ten Dollars and Fifty Cents ($10.50) per
square foot per annum and the Additional Rent excluding realty taxes and utilities shall not increase by more than ten percent (10%) per year. 

16

 

INSURANCE 

	(h)
	The
Landlord covenants to maintain insurance on the Building as would a prudent owner of a similar office building. 

11.    COMMON AREAS — EXPANSION AND ALTERATION  

	(a)
	Notwithstanding
anything in this lease contained, the Landlord shall have the right to enter into the Premises and to bring workmen and materials thereon to make such additions,
alterations, improvements, installations and repairs, and the Landlord may from time to time decide, in respect of the Building, the lands described in Schedule "A", and the lands adjoining same, the
Common Inside Areas, the Common Outside Areas and Facilities, or any part thereof, including the walkways , parking areas, shipping and receiving areas, driveways, and any other improvements thereto
or erections thereon (except to the Premises), including the right to change the size, shape and location thereof, erect buildings thereon or sell or lease part or parts thereof. The Landlord may
cause such reasonable obstructions and interference with the use and enjoyment of the Building, lands, Common Inside Areas or Common Outside Areas and Facilities as may be necessary for the purposes
aforesaid and may interrupt or suspend the supply of electricity, water or other utilities or services when necessary and until the additions, alterations, improvements, installations or repairs have
been completed, and there shall be no abatement in rent nor shall the Landlord be liable by reason thereof, provided all such work is done as expeditiously as reasonably possible. The landlord shall
have the right to use, install, maintain and repair pipes, wires, ducts, shafts or other installations in, under or through the Premises for or in connection with the supply of any services to the
Premises or any other premises in the Building or on the lands and the lands adjoining same. The Landlord shall provide the Tenant with seven (7) days notice if it wishes to interrupt or suspend the
supply of electricity as aforesaid except in the event of an emergency. 

Without
limiting the generality of the foregoing, the Landlord hereby reserves the right at any time and from time to time to make changes or revisions in its plans for the said lands, the Building,
the Common Inside Areas or the Common Outside Areas and Facilities, as aforesaid, and particularly the right to construct other buildings and improvements on the lands. The Landlord shall have the
right to specify the date on which any such changes become part of the said lands, the Building, the Common Inside Areas and Facilities, as the case may be, for all purposes. 

	(b)
	The
Landlord shall have the right to issue Rules and Regulations from time to time respecting the use of the Common Inside Areas and Common Outside Areas and Facilities including
without limiting the generality of the foregoing Rules and Regulations designating the means by which merchandise may be moved to and from the storage or loading areas and all such Rules and
Regulations shall be binding upon the Tenant.

	(c)
	The
manner in which the Common Outside Areas and Facilities and the Common Inside Areas are maintained and the expenditures incurred in connection therewith shall be at the reasonable
sole discretion of the Landlord. 

12.    FIXTURES  

        The Tenant may remove its fixtures; provided that all installations, alterations, additions, partitions, and fixtures other than trade or the Tenant's fixtures in
or upon the Premises, whether placed there by the Tenant or the Landlord shall become the Landlord's property without compensation therefor to the Tenant and shall not be removed from the Premises at
any time either during or after the Term; and provided further that if the Landlord so directs by written notice to the Tenant, the Tenant shall upon the termination of the Term, at the expense of the
Tenant, promptly remove any or all of the installations, alterations, additions, partitions and fixtures placed in the Premises by or at the request of the Tenant and The Tenant shall make good any
damage caused by such removal or the Landlord may make good such damage and the Tenant shall pay the cost thereof on demand which shall be recoverable as rent. 

17

   
        Notwithstanding the foregoing, the Tenant shall not be required to remove any of the initial leasehold improvements in the Premises or restore the Premises to its original condition.
Upon expiry of the Term or final Renewal Term, the Tenant shall leave the Premises in vacant, broom-swept condition. 

13.   INJURY TO PREMISES AND BUILDING

        If
during the Term, the Premises or the Building shall be damaged or destroyed by fire, lightning, tempest, explosion, acts of God, terrorism or Canada's enemies, structural defects or
weaknesses, impact of aircraft, riots or insurrection or other casualty then the following provisions shall have effect: 

	(a)
	If
the Premises or other parts of the Building shall be so badly injured as to render the Premises unfit for the Tenant's use and occupancy and shall be incapable, with reasonable
diligence, of being repaired within one hundred and eighty (180) days from the happening of such injury then either the Landlord or the Tenant may declare the Term to be forthwith terminated and the
Tenant shall immediately surrender the Premises to the Landlord and shall pay rent and Additional Rent only to the time of such injury, and the Landlord may re-enter and repossess the Premises
discharged of this Lease and may remove all persons therefrom.

	(b)
	If
the Premises or other parts of the Building shall be capable, within reasonable diligence, of being repaired and rendered fit for the Tenant's use and occupancy within one hundred
and eighty (180) days from the happening of such injury as aforesaid then;

	i)
	if
the damage is such as to render the Premises wholly unfit for occupancy during the process of such repairs, the rent hereby reserved shall not run or accrue after such
injury or while the process of repair is going on and the rent shall recommence immediately after such repairs have been completed;

	ii)
	if
the damage is so slight that the Premises are partially fit for occupancy and use for the purpose of the Tenant's business, until such damage has been repaired the
rent and Additional Rent hereby reserved shall abate only in proportion to the extent that possession and enjoyment are interfered with and until such possession and enjoyment are fully restored.

	(c)
	The
certificate of the Landlord's Architect as to whether any such injury can or cannot be repaired within a period of one hundred and eighty (180) days from the happening of any such
injury shall be final and binding upon the parties hereto as to the facts so certified.

	(d)
	Irrespective
of whether the Premises or any portion thereof are injured as aforesaid, in the event that twenty-five percent (25%) or more, as determined by the Landlord's Architect,
of the Building is injured by any cause whatsoever, and if such area cannot be rebuilt or made fit for the purposes of the tenants thereof within 180 days from the happening of such injury, the
Landlord may at its option terminate this Lease by giving to the Tenant, within thirty (30) days after such injury, notice of termination requiring vacant possession of the Premises sixty (60) days
after delivery of the notice of termination and thereupon rent and any other payment for which the Tenant is liable under this Lease shall be apportioned and paid to the date on which vacant
possession is given and the Tenant shall deliver up possession of the Premises to the Landlord in accordance with such notice of termination.

	(e)
	If
there is damage or destruction to the Premises or the Building and if this Lease is not terminated pursuant hereto, the Landlord, in performing its repairs as required hereby,
shall not be obligated to repair or rebuild in accordance with the plans or specifications for the Premises or the Building as they existed prior to such damage or destruction; rather, the Landlord
may repair or rebuild in accordance with any plans and specifications chosen by the Landlord in its sole discretion provided that 

18

 

the
Tenant's use of and access to the Premises and the general overall quality of the Building are not materially or detrimentally affected by any difference in plans or specifications of the Premises
or the Building. 

14.   DAMAGE TO PROPERTY

        The
Landlord shall not be liable nor responsible in any way for any loss or damage or injury to any property belonging to the Tenant or to employees of the Tenant or to any other person
while such property is in or upon the Premises or in the Building unless such loss, damage or injury shall have been caused by the negligence of the Landlord or of its employees, servants or agents;
but notwithstanding the foregoing, in no event shall the Landlord be liable for indirect or consequential damage or for any damage to any such property caused by the Building or from the water, steam
or drainage pipes or plumbing works of the Building or from any other place or quarter or for any damage caused by or attributable to the conditions or arrangement of any electric or other wiring or
for any damage caused by anything done or omitted by any other tenant. The Tenant covenants to indemnify and save harmless the Landlord against and from all loss, costs, claims or demands in respect
of any injuries, loss or damage referred to in this paragraph. 

15.   IMPOSSIBILITY OF PERFORMANCE

        It
is understood and agreed that whenever and to the extent that the Landlord shall be unable to fulfil or shall be delayed or restricted in the fulfillment of any obligation hereunder
in respect of the supply or provision of any service or utility or the doing of any work or the making of any repairs or by reason of being unable to obtain the material, goods, equipment, service or
labour required to enable it to fulfil such obligation or by reason of any statute, law or order-in-council or any regulation or order passed or made pursuant thereto or by reason of the order or
direction of any administrator, controller, board, governmental department or officer or other authority, or by reason of not being able to obtain any permission or authority required thereby, or by
reason of any other cause beyond its control whether of the foregoing character or not, the Landlord shall be relieved from the fulfillment of such obligation and the Tenant shall not be entitled to
compensation for any inconvenience, nuisance or discomfort thereby occasioned. 

16.   DEFAULT OF TENANT

        It
is hereby expressly agreed, that if and whenever the rent hereby reserved, or any part thereof, shall not be paid on the day appointed for payment thereof, although no formal demand
shall have been made thereof, or in the case of the breach, non-observance or non-performance of any of the covenants or agreements or Rules and Regulations herein contained or referred to on the part
of the Tenant to be observed and performed, or in case the Premises shall be vacated or remain unoccupied for a period of fifteen (15) consecutive business days, or in case the Term shall be taken in
execution or attachment for any cause whatsoever, then and in each such case, it shall be lawful for the Landlord at any time thereafter to re-enter the Premises or any part thereof in the name of the
whole and the same to have again, re-possess and enjoy as of its former estate, anything herein contained to the contrary notwithstanding. 

17.   BANKRUPTCY

        Provided
further that in case the Premises shall remain vacant or not used for a period of fifteen (15) business days or be used by any person other than the Tenant or for any purpose
other than that as herein or in the annexed Rules and Regulations, without the written consent of the Landlord, or in case the Term or any of the goods and chattels of the Tenant shall be at any time
seized in execution or attachment by any creditor of the Tenant or the Tenant shall make any assignment for the benefit of creditors or become bankrupt or insolvent or take the benefit of any Act now
or hereafter in force for bankrupt or insolvent debtors or (if the Tenant is a company) an order shall be made for the winding-up of the Tenant, then in any such case this Lease shall, at the option
of the Landlord cease and determine and the Term shall immediately become forfeited and void and the then current month's rent and next ensuing three (3) months rent shall immediately become due and
payable and the Landlord may re-enter and take possession of the Premises as though the Tenant or other occupant or occupants of the Premises was or were holding over after the expiration of the Term
without any 

19

   
right whatever, but the Tenant shall continue to be liable to the Landlord for the rent hereby reserved for the balance of the Term. 

18.   WAIVER OF EXEMPTIONS

        The
Tenant hereby covenants and agrees with the Landlord that in consideration of the Premises and of the leasing and letting by the Landlord to the said Tenant of the lands and the
Premises mentioned above for the Term hereby created (and it is upon that express understanding that these presents are are entered into) notwithstanding anything contained in Section 30 of
Chapter 232 of the Revised Statutes of Ontario, 1980 or in any other statute which may hereafter be passed to take the place of the said Act or the amendment of same, none of the goods or
chattels of the said Tenant at any time during the continuance of the Term hereby created on the demised Premises, shall be exempt from levy by distress for rent in arrears by the Tenant as provided
for by any section or sections of the said Act or any amendment or amendments thereto, and that upon any claim being made for such exemption by the Tenant or on distress being made by the Landlord,
this covenant and agreement may be pleaded as an estoppel against the Tenant in any action brought to test the right to the levying upon any such goods as are named as exempted in said section or
sections or amendments or amendments thereto, said Tenant waiving as the Tenant hereby does, every benefit that could or might have accrued to the Tenant under and by virtue of the said section or
sections of the said Act of any amendment of amendments thereto but for this covenant. 

19.   RIGHT OF RE-ENTRY

        The
Tenant further covenants and agrees that upon the Landlord becoming entitled to re-enter upon the Premises under any of the provisions of this Lease, the Landlord in addition to all
other rights, shall have the right to enter the Premises as the agent of the Tenant either by force or otherwise, without being liable for any prosecution therefor, and to re-let the Premises as the
agent of the Tenant, to take possession of any furniture or other property on the Premises and to sell the same at public or private sale with or without notice and to apply the proceeds of such sale
and any rent derived from re-letting the Premises upon account of the rent hereby reserved, and the Tenant shall be liable to the Landlord for the deficiency, if any. 

20.   RIGHT OF TERMINATION

        The
Tenant further covenants and agrees that upon the Landlord becoming entitled to re-enter upon the Premises under any of the provisions of this Lease, the Landlord, in addition to all
other rights, shall have the right to terminate forthwith this Lease and the Term by leaving upon the Premises notice in writing of its intention so to do, and thereupon rent and Additional Rent and
any other payments for which the Tenant is liable and under this Lease shall be computed, apportioned and paid in full to the date of such termination of this Lease, and the Tenant shall immediately
deliver up possession of the Premises to the Landlord, and the Landlord may re-enter and take possession of the same. Any such re-entry and any such termination shall be without prejudice to the
Landlord's right to sue for damages and pursue its other remedies at law and hereunder. 

        If
the Tenant is not then in default under the terms of the Lease, either in payment of rent or observance of any of the covenants contained in the Lease and provided further that the
Tenant has not exercised its expansion right in paragraph 48 hereof; after the completion of the third, fourth or fifth anniversary dates of the Lease, the Tenant shall have, at its sole
option, the ability to terminate the Lease upon providing the Landlord with not less than one hundred and twenty (120) days written notice of the termination date (the "Termination Date"). On or
before the Termination Date the Tenant shall pay the Landlord the equivalent of three (3) months gross rent plus any unamortized leasehold improvements and any unamortized commissions amortized at ten
percent (10%) interest (the "Termination Penalty"). Upon the Termination Date and payment of the Termination Penalty to the Landlord, the Lease shall become null and void and of no further force or
effect. 

20

 

21.   NON-WAIVER

        Any
condoning, waiving, excusing or overlooking by the Landlord of any default, breach or non-observance by the Tenant at any time or times or in respect of any covenant, proviso or
condition herein contained shall not operate as a waiver of the Landlord's right hereunder in respect of any subsequent default, breach or non-observance, nor so as to defeat or affect in any way the
rights of such party herein in respect of any such subsequent default or breach. 

22.   WAIVER

        The
Tenant hereby expressly waives the benefit of Section 35 of the Landlord and Tenant Act and amendments thereto and of any present or future Act of the Legislature of the
Province of Ontario permitting the Tenant to claim a set off against the rent reserved hereby for any cause whatsoever. 

23.   CHATTELS

        In
the case of removal by the Tenant of the goods and chattels of the Tenant from the Premises the Landlord may follow the same for thirty (30) days in the same manner as is
provided for in the Landlord and Tenant Act. 

24.   LANDLORD MAY PERFORM COVENANTS

        If
the Tenant shall fail to perform any of the covenants or obligations of the Tenant under or in respect of this Lease, the Landlord, subject as hereinafter provided, may from time to
time, in its discretion, perform or cause to be performed any of such covenants or obligations, or any part thereof, and for such purpose may do such things as may be requisite, including without
limiting the foregoing, entering upon the Premises and doing such things upon or in respect of the Premises or any part thereof as the Landlord may consider requisite or necessary or making, on behalf
of the Tenant, any payment which the Tenant is obligated to make under the provisions of this Lease (including all expenses incurred and expenditures made by or on behalf of the Landlord under this
paragraph or any other amounts owing by the Tenant to the Landlord under the provisions of this Lease, other than rent) shall, unless otherwise provided in this Lease, be forthwith paid by the Tenant
to the Landlord upon receipt of written notice requesting same and if not so paid shall bear interest at the same rate as referred to in paragraph 3 of this Lease, from the date the same were
incurred, made or due (particulars as to which shall be given by the Landlord to the Tenant) and all amounts owing to the Landlord and referred to by this paragraph shall be deemed to be Additional
Rent and recoverable by the Landlord in the same manner as if they were rent in arrears and with like powers of distress. Provided that, except in cases of emergency, the Landlord before exercising
its rights under this paragraph to perform any obligation or covenant of the Tenant shall give the Tenant fifteen (15) days' notice of the default which the Landlord intends to remedy and if the
Tenant within said period forthwith remedies or takes such action as may be necessary to remedy said default and thereafter pursues and completes same with reasonable diligence the Landlord shall not
proceed under this paragraph in respect of said default. 

25.   OVERHOLDING

        If
without any further written agreement the Tenant shall continue to occupy the Premises and pay rent after the expiration of the Term, the Tenant shall be a monthly tenant at a monthly
rental equal to one-sixth (1/6th) of the annual rental payable in respect of the last year of the Term and otherwise of the terms and conditions herein set out, except as to length of
tenancy. 

26.   NO COLLATERAL AGREEMENTS

        It
is understood and agreed that this Lease contains the entire agreement and understanding made between the parties hereto, and that there is no representation, warranty, collateral
agreement or condition, expressed or implied, affecting this lease or supported hereby other than such as may be expressly contained in or implied from the provisions hereof and that this Lease may
not be modified except as herein expressly provided or except by subsequent agreement in writing of equal formality hereto executed by the Landlord and the Tenant. 

21

   27.   ARBITRATION  

	(a)
	In
the case of any dispute between the Landlord and the Tenant during the Term hereof, and any renewal, as to any matter arising hereunder, either party hereto shall be entitled to
give to the other party notice of such dispute and demand arbitration thereof and, after giving notice and demand, each party shall at once appoint an arbitrator and such appointees shall jointly
appoint a third. The decision of any two of the three arbitrators so appointed shall be final and binding upon the parties hereto who covenant one with the other that their disputes shall be so
decided by arbitration alone and not be recourse to any court by action at law.

	(b)
	If
within a reasonable time the two arbitrators appointed by the parties hereto do not agree upon a third, or if the party who has been notified of a dispute fails to appoint an
arbitrator, then a third arbitrator or an arbitrator to represent the party in default may, upon petition of the party not in default, be appointed by a judge of the Supreme Court of Ontario. The cost
of the arbitration shall be apportioned between the parties hereto as the arbitrators may decide. 

28.   SUBORDINATION  

        This Lease is subject and subordinate to all ground or underlying leases, if any, and to all mortgages (including any deed of trust and mortgage security bonds
and all indentures supplemental thereto) which may now or hereafter affect either the freehold lands on which the Building is situated or such leases and the parcel or parcels of leasehold land
constituted thereby, as the case may be, and to all renewals, modifications, consolidations, replacements and extensions thereof. The Tenant agrees to execute promptly any certificate in confirmation
of such subordination and the Landlord may request and hereby constitutes the Landlord, the agent or attorney in fact of the Tenant for the purpose of executing any such certificate and of making
application at any time and from time to time to register postponements of this Lease in favour of any such mortgage in order to give effect to the provisions of this paragraph 28. 

29.   REGISTRATION  

        The Tenant covenants and agrees with the Landlord that the Tenant will not register this Lease in this form in the appropriate Registry Office or Landlord Titles
Office, as the case may be. If the Tenant desires to make a registration for the purpose only of giving notice of this Lease, then the parties hereto shall contemporaneously with the execution of this
Lease execute a short form thereof, solely for the purpose of supporting an application for registration of notice thereof. The Tenant shall pay to the Landlord forthwith upon demand as Additional
Rent the Landlord's reasonable costs associated with such registration, including reasonable legal fees, and the Tenant agrees to remove the Notice of Lease from title upon vacating at its sole cost
and expense. 

30.   NOTICE  

        Any notice or request herein provided for or given hereunder if given by the Landlord to the Tenant shall be sufficiently given if mailed at a time of no actual
or reasonably anticipated disruption in regular postal service, by prepaid registered post addressed to the Tenant at the Premises or if delivered in a sealed envelope addressed to the Tenant at the
Premises and any notice or request herein provided for or given hereunder if given by the Tenant to the Landlord shall be sufficiently given if mailed or delivered as aforesaid addressed to
Badenhurst-Airway Centre Ltd., c/o TransGlobe Management Services, 5935 Airport Road, Suite 600, Mississauga, Ontario L4V 1W5, Attention: Daniel Drimmer, Vice President. 

        Any
notice or request shall be conclusively deemed to have been given if mailed as aforesaid on the third (3rd) business day next following the day on which it was so mailed, and
if delivered at the time of delivery. Either party may at any time give notice in writing to the other of any change of address of the party giving such notice and from 

22

 

and
after the giving of such notice the address therein specified shall be deemed to be the address of such party for the purpose of giving such notices or requests thereafter. 

31.   CAPTIONS  

        The captions appearing in this Lease have been inserted as a matter of convenience and for reference only and in no way define, limit or enlarge the scope of
meaning of this Lease or any of its provisions. 

32.   EFFECT OF LEASE  

        This indenture and everything herein contained shall extend to and bind and may be taken advantage of by the respective heirs, executors, administrators,
successors, and assigns, as the case may be, of each and every one of the parties hereto, subject to the granting of consent by the Landlord as provided in paragraph 5 (i) to any
assignment or sub-lease, and where the Tenant consists of more than one person or is a female or a corporation, the provisions hereof shall be read with all grammatical changes thereby rendered
necessary and all covenants on the part of the Tenant shall be deemed joint and several. 

33.   ASSIGNMENT BY LANDLORD  

        If the Landlord sells the Building or leases the entire Building under one Lease, or so sells or leases the lands on which the Building is located or any part
thereof, or assigns this Lease, and to the extent that the purchaser, lessee or assignee is responsible for compliance with the covenants and obligations of the Landlord hereunder, the Landlord
without further written agreement shall be discharged and relieved of liability under the said covenants and obligations. 

34.   ADDITIONAL RENTALS  

        All amounts that are or shall become payable by the Tenant to the Landlord pursuant to this Lease and whether hereinbefore expressed to be payable as Additional
Rent or otherwise than as rent shall be and it is hereby agreed that they and each of them shall be payable as Additional Rent. 

35.   PARKING  

        During the Term and any renewals thereof, the Landlord shall rent to the Tenant up to three (3) unreserved parking spaces in the Building's underground
parking facilities at a cost of Fifty Dollars ($50.00) per space per month, and up to fifty-four (54) unreserved parking spaces in the Building's surface parking facilities at a cost of Thirty-Five
Dollars ($35.00) per space per month throughout the Term, which rates shall be capped throughout the Term. The Tenant shall be entitled to an additional thirty (30) parking stalls in the surface
parking area at a cost of Thirty Five Dollars ($35.00) per space per month, based upon availability. All parking charges shall be subject to all applicable taxes which shall be paid by the Tenant to
the Landlord. The Landlord shall have the right at any time to substitute forty (40) surface parking spaces with forty (40) underground parking spaces, provided they are rented to the Tenant at the
same rate as the surface parking. 

        Parking
charges are for the use of the said parking spaces only and the Landlord shall not be responsible for any theft, loss or damage to the Tenant's vehicles whatsoever, or for any
injury to the Tenant or others in the underground parking garage. 

        The
use by the Tenant and the Tenant's agents, employees, invites, licensees and others doing business with the Tenant, of the unreserved surface parking space located on the Common
Outside Areas and Facilities shall not at any time exceed or be disproportionate to the Tenant's Proportionate Share of the Total Rentable Area of the Building, without the prior written approval of
the Landlord, which approval may be arbitrarily withheld. 

        No
propane-powered vehicles shall be permitted in the underground or surface parking areas of the Building and the complex known as the Airway Centre. 

23

   
        The Landlord shall have the right to establish reasonable Rules and Regulations governing the use of the parking spaces from time to time and the Tenant hereby agrees to observe and
abide by all such Rules and Regulations. 

36.   RELOCATION  

        The Landlord shall have the right, at any time and from time to time during the Term of this Lease and any renewal thereof, to change the location of the Premises
from the location described in this Lease to another location anywhere in the Building or any other building from time to time forming part of the complex known as the Airway Centre. Provided that the
Landlord shall give the Tenant reasonable notice of such relocation and the Landlord shall reimburse the Tenant for all reasonable out of pocket costs directly related to such relocation, but not
including any indirect costs such as lost profits during the relocation period or damages for inconvenience. 

37.   NET LEASE  

        The Tenant acknowledges that it is intended and agreed that this Lease is a completely carefree Net Lease for the Landlord and that the Landlord is not
responsible during the Term or any renewals thereof for any costs, charges, expenses or outlays of any nature relating to the Premises, the Building the Common Inside Areas and Common Outside Areas
and Facilities, or the Complex, or the contents thereof, or otherwise except as specifically set forth in this Lease, and that the Tenant will pay all charges, taxes, impositions, costs and expenses
of every kind relative to the Premises, and the Tenant covenants with the Landlord accordingly. 

38.   SCHEDULES  

        Schedules "A", "B", and "C" annexed hereto form part of this Lease. 

39.   TIME OF ESSENCE  

        Time shall be of the essence of this Lease. 

40.   LAW  

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

41.   PLANNING ACT  

        This Lease is subject to compliance with the provisions of the Planning Act of Ontario, (RSO 1990, C.T13) as amended. 

42.   GROSS RENT FREE PERIOD  

        The Landlord hereby grants to the Tenant the month of November, 2002 free from basic rent and Additional Rent (the "Gross Rent Free Period"). During the Gross
Rent Free Period, the Tenant shall not be responsible for Additional Rent payments as described in section 34 hereof and shall adhere to and abide by all other terms and conditions set out in
this Lease. 

43.   LEASEHOLD IMPROVEMENT ALLOWANCE  

        The Landlord shall provide the Tenant with an amount equal to Three Hundred Thousand Dollars ($300,000.00) plus G.S.T. (the "Leasehold Improvement Allowance") to
be applied toward the cost of constructing leasehold improvements in the Premises (the "Leasehold Improvements"). The Landlord shall provide the Tenant with "turnkey" Premises at its sole expense and
in a good and workmanlike manner with first class materials, on or before the Commencement Date, in accordance with the Plans and Specifications (as defined in section 6 of the Offer to Lease)
accepted by the Tenant on April 25, 2002. Notwithstanding anything else contained herein the "turnkey" Premises shall consist of the Landlord completing its work as set out in section 44
hereunder. 

24

 

44.   LANDLORD'S WORK  

        The Landlord represents and warrants that it will complete the following work at its sole cost and in a good and workmanlike manner (the "Landlord's Work") on or
before the Commencement date or provide the Tenant with a schedule as to when the work will be completed in the event the Commencement Date has already occurred: 

	(a)
	Renovate
the lobby and elevators to the Landlord's standard finishes; and

	(b)
	Retrofit
the washrooms on the Tenant's floor with hands free devices for the men's urinals, to the Landlord's standard finishes. 

        The
Landlord will substantially complete the re-cladding of the exterior of the building within one (1) year from the date of execution of this Lease. 

        The
Landlord's Work, as set out above is inclusive of all reasonable costs associated with providing the Tenant with quality office premises, and shall include, but not be limited to,
costs associated with management fees (not to exceed ten percent (10%) of the Leasehold Improvements), design and consulting fees, permits, demolition, necessary materials or substitutions, HVAC
balancing, plumbing, hoisting, overtime or other increases in labour costs, cleanup, insurance, overhead, supervision. All costs relating to the Landlord's Work shall be deducted from the Leasehold
Improvement Allowance, subject to the Tenant's prior written approval, which approval shall not be unreasonably withheld or delayed. The Tenant shall be responsible for any costs in excess of the
Leasehold Improvement Allowance, subject to the Tenant's prior approval of such costs. Any unused portion of the Leasehold Improvement Allowance shall be applied as a basic rent credit to the Tenant's
account from the Commencement Date. The Landlord covenants to provide a summary to the Tenant of all Leasehold Improvement costs upon completion of the project. 

45.   EARLY OCCUPANCY PERIOD  

        The Tenant shall be permitted occupancy of the Premises free from basic rent and Additional Rent (5) days prior to the Commencement Date (the "Early
Occupancy Period") contemporaneously with the Landlord in order to set up some of its equipment in the open east area of the Premises. During the Early Occupancy Period the Tenant shall abide by and
adhere to all other terms and conditions of this Lease. 

46    FIXTURING PERIOD 

        In
co-operation with the Landlord's trades the Landlord shall use its best efforts to grant access to the Tenant to the Premises for a minimum period of twenty (20) days prior to
the Commencement Date for the purposes of allowing the Tenant to cable and prepare the Premises for its intended use free from basic rent and Additional Rent until the Commencement Date (the
"Fixturing Period"). 

47.   OPTION TO RENEW  

        The Tenant, if not in default under the lease, either in payment of rent or observance of the covenants herein, shall have the option to renew the Lease (the
"Option to Renew") for a term of five (5) years (the "Renewal Term") upon giving the Landlord at lease six (6) months written notice of the exercise of such right, prior to the expiry of
the term, subject to the same provisions as are contained in the Lease except that there shall be no further right of renewal, no free rent period, no leasehold allowances, no expansion rights, no
termination rights and the rent for the renewal term shall be the then market rent for the Premises as determined by agreement between the Landlord and the Tenant, and any improvement allowance,
turnkey package and/or cash inducements shall be negotiated between the Landlord and the Tenant at that time. 

        In
the event the Landlord and the Tenant are unable to reach agreement with respect to the financial terms for the Renewal Term within sixty (60) days of delivery of the written
notice by the Tenant to the Landlord exercising the Tenant's Option to Renew, then the matter shall be referred to arbitration subject to The Arbitration Act and the decision of the arbitrator(s)
shall be final and binding on the parties named hereto. 

25

   48.   EXPANSION AND TERMINATION  

        If, at any time during the Term, the Tenant if not then in default under the Lease, either in payment of rent or observance of the covenants thereon, shall have
the right to give notice in writing to the Landlord of its need for additional space of at least five thousand (5,000) square feet (the "Expansion Space"). Upon receipt of such notice, the Landlord
shall have twenty (20) business days to provide a written response as to the availability of the Expansion Space at fair market value and within ninety (90) days of the Tenant's request to outline the
terms and conditions for leasing the Expansion Space within the following buildings at 5915, 5925 and 5935 Airport Road. The Tenant shall then have five (5) days to notify the Landlord of its
intention to lease the Expansion space. Should the Landlord be unable to provide Expansion Space on terms acceptable to both the Tenant and the Landlord, both parties acting reasonably, the Tenant
shall have the right to terminate the lease without penalty upon providing the Landlord with not less than ninety (90) days written notice of the termination date. Upon such termination date the Lease
shall become null and void and of no further force or effect. 

49.   FORCE MAJEURE  

        In the event that either party shall be delayed or hindered or prevented from performing any of its obligations hereunder by reason of any strike, lock-out,
labour trouble, shortage of materials, failure of power, restrictive governmental laws or regulations, riots, insurrection, war, acts of God or Canada's enemies or for any other reason beyond the
reasonable control of the party delayed in performing its obligations hereunder, then performance of such obligations shall be excused for the period of all such delays and the period for the
performance of any such obligation shall be extended for a period equivalent to the period of all such delays. In the event the Tenant's possession of the Premises is reasonably delayed through no
fault of the Tenant, then all dates contained herein shall be adjusted accordingly including the Commencement Date with no loss of benefit to the Tenant. 

50.   WAIVER OF SUBROGATION  

	(a)
	By
Tenant:    The Tenant hereby undertakes and agrees that all policies of insurance taken out by it pursuant to the terms of this Lease shall
contain a waiver of any subrogation rights which the Tenant's insurers may have against the Landlord and those for whom the Landlord is responsible for in law.

	(b)
	By
Landlord:    The Landlord hereby undertakes and agrees that all policies of insurance taken out by it pursuant to the terms of this Lease
shall contain a waiver of any subrogation rights which the Landlord's insurers may have against the Tenant and those for whom the Tenant is responsible for in law. 

26

 

IN
WITNESS WHEREOF the Landlord and the Tenant have executed these presents. 

	SIGNED, SEALED AND DELIVERED

                    in the presence of:	 
	
 	
BADENHURST-AIRWAY CENTRE LTD.
	 	                                        
                  (the "Landlord")
	
 	

Per: /s/ Daniel Drimmer
 Name: Daniel Drimmer 10/10/02

Title: Vice-President

I have authority to bind the Corporation
	
 	
HOSTOPIA.COM INC.
	 	                                        
                  (the "Tenant")
	
 	

Per: /s/ Colin Campbell
 Name: Colin Campbell

Title: V.P./COO
	
 	

Per:
 Name:

Title:

We have the authority to bind the Corporation

27

  

 
 

SCHEDULE "A"
  
    LEGAL DESCRIPTION    
    

        ALL AND SINGULAR that certain parcel or tract of land and premises situate, lying and being in the City of Mississauga, in the Regional Municipality of Peel
(formerly Township of Toronto, County of Peel) and being composed of those parts of Lot 5, Concession 7 East of Hurontario Street, in the said City, designated as Parts, 3, 12, 13, 14,
16, 20, 21, 22, & 23 on 43R-13291, Subject to R0817778, together with R0600214; subject to R0815894 & r)976958, as in PIN 13262-0076 (LT), City of Mississauga, Province of
Ontario, municipally know as 5915 Airport Road, Mississauga, Ontario. 

28

 
 
 

SCHEDULE "B"
  
    FLOOR PLAN OF THE PREMISES    
    

	 

	

 

29

  

 
 

SCHEDULE "C"
  
    RULES AND REGULATIONS    
    

1.     INGRESS AND EGRESS

        The
sidewalks, entrances, elevators, stairways, corridors and fire escapes of the Building shall not be obstructed by the Tenant or used for any purpose other than for ingress and egress
to and from the Premises. The Tenant shall not place or allow to be placed in the hallways, corridors or stairways any waste paper, dust, garbage, refuse or anything else whatsoever that would
obstruct them or tend to make them appear unclean or untidy. Nothing shall be thrown by the Tenant or its employees out of the windows or doors or down the passages or sky lights of the Building. 

2.     HEAVY EQUIPMENT

        Business
machines, filing cabinets, heavy merchandise, or other articles liable to overload, injure or destroy any part of the Building shall not be taken into it without the written
consent of the Landlord and the Landlord shall in all cases retain the right to prescribe the weight and proper position of all such articles and times and routines for moving them into or out of the
Building; the cost of repairing any damage done to the Building by the moving or keeping of any such articles on the Premises shall be paid by the Tenant. 

3.     OTHER TENANTS

        The
Tenant and its employees shall not in any way interfere with or annoy other occupants of the Building or those having business with them. 

4.     NOTICE OF DEFECTS

        The
Tenant shall give the Landlord or its agent prompt written notice of any accident to or any defect in the plumbing, heating, air-conditioning, mechanical or electrical apparatus or
any other part of the Building which has come to the attention of the Tenant. 

5.     VEHICLES AND ANIMALS

        No
bicycles or other vehicles and no dog or other animal or bird shall be brought into or kept in the Building. 

6.     SUPPLIES

        Furniture,
effects and supplies shall not be taken into or removed from the Premises except at such time and in such manner as may be previously approved by the Landlord. 

7.     NOISE

        The
Tenant will not make or permit any improper noise in the Building and will not place any radio or television antenna on the roof or in any part of the inside or outside of the
Building other than the inside of the Premises; and will not operate or permit to be operated any musical or sound producing instrument or device inside or outside the Premises which may be heard
outside the Premises; and will not operate any electrical device from which may emanate waves which may interfere or impair radio or television broadcasting or reception from or in the Building or
elsewhere. 

8.     SLEEPING QUARTERS

        No
one shall use the Premises for sleeping quarters. 

9.     SECURITY

        The
Landlord shall the the right to (a) require all persons entering and leaving the Building at hours other than normal business hours, which are defined as between 

30

 

7:00 a.m.
and 6:00 p.m. Monday through Friday, as the Landlord may reasonably determine to identify themselves to a watchman by registration or otherwise and to establish their right to
enter and leave and (b) to exclude or expel any peddler or beggar at any time from the Premises or the Building. 

10.   WASHROOMS

        The
Tenant and its employees shall use such water closets, other water apparatus and washroom facilities in the Building as shall be from time to time designated by the Landlord for use
in connection with the Premises. The water closets and other water apparatus shall not be used for any purpose other than those for which they are constructed and no sweepings, rubbish, rags, ashes or
other substances shall be thrown therein. Any damage resulting by misuse shall be borne by the tenant by whom or by whose employees the same is caused. The Tenant shall not let water run unless in
actual use. 

11.   WINDOW COVERINGS

        Vertical
blinds for all exterior windows, uniformly standard as specified and arranged for by the Landlord at the Landlord's expense. 

12.   LOCKS

        The
Tenant shall not place any additional lock upon any door of the Building. 

13.   COOKING

        The
Tenant shall not permit any cooking in the Premises without the written consent of the Landlord, except that the Tenant shall be permitted to use microwave ovens in the Premises. 

14.   PARKING

        The
Tenant and its employees, invitees, visitors, and others doing business with it at the Premises shall not block the driveways or parking stalls in the parking lot or the underground
parking garage of the Building by parking their vehicle in such a manner that such vehicles restrict the free flow of traffic or prevent other vehicles from entering designated parking stalls or in a
manner in which one vehicle is using or hindering the use of more than one parking stall. There shall be no overnight parking whatsoever without the prior written approval of the Landlord. Any
vehicles violating these rules with respect to parking will be ticketed and/or towed away by the Landlord at the expense of the Tenant. 

        The
Tenant will at the commencement of the Term and from time to time during the term of this Lease at the Landlord's request, provide the Landlord with a list of all employees of the
Tenant together with the make, model, year and current licence number of such employee's vehicle or vehicles. 

31

 
 

AGREEMENT made this 1st day of May, 2003    

        B
E T W E E N: 

	 	 	BADENHURST-AIRWAY CENTRE LTD.	 	 
	

 	
 	

Hereinafter called the "Landlord"

Party of the First Part;	
 	

 
	

 	
 	

-and -	
 	

 
	

 	
 	
HOSTOPIA.COM INC.	
 	

 
	

 	
 	

Hereinafter called the "Tenant"

Part of the Second Part;	
 	

 

        WHEREAS the Landlord is the owner of the property municipally know as the Airway centre, 5915, 5925 and 5935 Airport Road, Mississauga, Ontario (the "Property"); 

        AND
WHEREAS the Tenant is currently the Tenant of Suite 1100, 5915 Airport Road, Mississauga, Ontario, by virtue of a Lease document dated the 30th day of
September, 2002, between Badenhurst-Airway Centre Ltd. and Hostopia.Com Inc. 

NOW
THEREFORE, IT IS HEREBY AGREED AS FOLLOWS: 

	1.
	The
exterior signage right as indicated in Section 5(t) of the aforesaid lease document, currently held for the southern elevation of the building to be amended to read the
western elevation of the building (currently occupied by Parmalat Dairy & Bakery Inc.).

	2.
	Landlord
to provide the Tenant with a credit of Fifteen Thousand ($15,000.00) Dollars, inclusive of all taxes, towards the new signage, which amount to be paid upon completion of the
installation and presentation of an original invoice.

	3.
	This
Agreement to be effective immediately upon the execution of this document by all Parties.

	4.
	All
other terms and conditions to remain the same as in the original lease document dated the 30th day of September, 2002. 

DATED
at                                this        day
of May, 2003 

	
BADENHURST-AIRWAY CENTRE LTD.	
 	

 	
 	

HOSTOPIA.COM INC.
	

Per:    /s/  DANIEL DRIMMER      	
 	

 	
 	

Per:    /s/  COLIN CAMPBELL      
	
	 	 	 	

	Daniel Drimmer, Vice President	 	 	 	Colin Campbell

LEASE AMENDING AGREEMENT made this 3rd day of February, 2005 

B E T W E E N:  

BADENHURST-AIRWAY CENTRE LTD.  

(Landlord) 

– and – 

HOSTOPIA.COM INC.  

(Tenant) 

WHEREAS
by a lease document dated the 30th day of September, 2002, made between the Landlord and the Tenant, (the "Lease") the Landlord did demise and lease unto the Tenant a
portion of the building situate at 5915 Airport Road in the City of Mississauga in the Regional Municipality of Peel and municipally known as Suite 1100, 5915 Airport Road
(the "Building"), for a term of seven (7) years from November 1st, 2002 to October 31st, 2009, at the rent and on the terms and conditions
therein more particularly set out: 

AND
WHEREAS the Landlord has agreed in this Agreement to lease additional space (the "Additional Premises) as of March 1st, 2005; 

NOW
THEREFORE WITNESSETH the Landlord and the Tenant hereby covenant and agree as follows: 

	1.
	The
Landlord has agreed to lease to the Tenant Additional Premises on the eighth (8th) floor, being Suite 827, consisting of approximately
585 square feet of rentable area of the Building for a total of 14,982 square feet, as of March 1st, 2005 and terminating on
October 31st, 2009.

	2.
	The
Net Rental rate shall be at the same rates, namely, $12.50 per square foot, per annum, net net for the period of March 1st, 2005 to
October 31st, 2005, $12.75 per square foot, per annum, net net for the period of November 1st, 2005 to October 31st, 2007 and
$13.00 per square foot, per annum, net net for the period of November 1st, 2007 to October 31st, 2009.

	3.
	The
Tenant shall pay as Additional Rent, its proportionate share of Realty Taxes, Maintenance and Operating Costs with respect to the Additional Premises estimated at $11.00 per
square foot.

	4.
	The
Landlord agrees to allow the Tenant to take early occupancy of the Additional Premises gross rent free, on or after February 18th, 2005, provided the
Landlord's Work has been substantially completed.

	5.
	The
Landlord shall steam clean the carpet and repaint the Additional Premises in the Tenant's choice of colour from the Landlord's standard samples.

	6.
	The
Tenant shall have the option to terminate this Agreement with respect to the Additional Premises only anytime after March 1st, 2006, provided written notice is
delivered to the Landlord ninety (90) days prior to such date.

	7.
	All
other terms and conditions as set out in the Lease except as specifically hereby amended shall remain in full force and effect. 

The
new monthly rental schedule, commencing March 1st, 2005 with respect to the Additional Premises shall be calculated as follows: 

	Base Rent

($12.50 p.s.f. × 585 s.f., divide by 12)	 	$	609.38
	On Account of Realty Taxes

($3.40 p.s.f. × 585 s.f., divide by 12)	 	 	165.75
	On Account of Maintenance and Operating Costs

($7.60 p.s.f. × 585 s.f., divide by 12)	 	 	370.50
	 	 	

	 	Subtotal	 	$	1,145.63
	 	7% G.S.T.	 	 	80.19
	 	 	

	TOTAL MONTHLY RENT	 	$	1,225.82
	 	 	

	 

	 

	 

	 

	 

IN WITNESS WHEREOF the Parties have hereto executed this Lease Amending Agreement 

	BADENHURST-AIRWAY CENTRE LTD.	 	HOSTOPIA.COM INC.
	

	 	 	 	 	 	 
	Per:	 	/s/  DANIEL DRIMMER      	 	Per:	 	/s/  COLIN CAMPBELL      
	 	 	
	 	 	 	

	 	 	Daniel Drimmer, Vice President	 	 	 	Colin Campbell, COO

LEASE AMENDING AGREEMENT made this 3rd day of January, 2006 

B E T W E E N:

BADENHURST-AIRWAY CENTRE LTD.

(Landlord) 

— and — 

HOSTOPIA.COM INC.

(Tenant)

WHEREAS
by a lease document dated the 30th day of September, 2002, made between the Landlord and the Tenant, the Landlord did demise and lease unto the Tenant a portion of the building
situate at 5915 Airport Road in the City of Mississauga in the Regional Municipality of Peel and municipally known as Suite 1100, 5915 Airport Road (the "Building"), for a
term of seven (7) years from November 1st, 2002 to October 31st, 2009, at the rent and on the terms and conditions therein more particularly set out: 

AND
WHEREAS the Landlord and the Tenant entered into a Lease Amending Agreement dated the 3rd day of February, 2005 for additional space (the "First Expansion Premises"), at the
rent and on the terms and conditions therein more particularly set out; 

AND
WHEREAS the Landlord has agreed in this Agreement to lease additional space (the "Second Expansion Premises") as of February 1st, 2006; 

AND
WHEREAS the Landlord and Tenant have agreed to amend the Lease and the Lease Amending Agreement all of which shall collectively be referred to as the "Lease", on the terms set out in this
Agreement; 

NOW
THEREFORE WITNESSETH the Landlord and the Tenant hereby covenant and agree as follows: 

	1.
	The
Landlord has agreed to lease the Second Expansion Premises on the eighth (8th) floor, being Suite 800, consisting of approximately
902 square feet of rentable area of the Building for a total of 15,884 square feet, as of February 1st, 2006 and terminating on
October 31st, 2009.

	2.
	The
Net Rental rate shall be at the same rates, namely, $12.75 per square foot, per annum, net net for the period of February 1st, 2006 to
October 31st, 2007 and $13.00 per square foot, per annum, net net for the period of November 1st, 2007 to October 31st, 2009.

	3.
	The
Tenant shall pay as Additional Rent, its proportionate share of Realty Taxes, Maintenance and Operating Costs with respect to the Second Expansion Premises estimated at $11.25 per
square foot.

	4.
	The
Landlord, at its own expense, shall complete the following work:

	(i)
	to
demolish existing partitions;

	(ii)
	to
provide new carpet throughout in Tenant's choice of colour from Landlord's building standard samples;

	(iii)
	to
paint throughout in Tenant's choice of colour from Landlord's building standard samples to a maximum two (2) coat coverage;

	(iv)
	to
build one (1) office in a location to be mutually agreed upon. 

	5.
	The
Tenant shall have the right to lease, subject to existing rights, any contiguous space on the eighth (8th) floor (the "Expansion Space") which is adjacent to
the First Expansion Premises and Second Expansion Premises. In the event the Expansion Space becomes available, the Landlord shall provide the Tenant with notice and the Tenant shall notify the
Landlord, in writing, within three (3) business days of its intent to exercise its right. Should the Tenant exercise its right, the rental terms shall be at the then current market rates, and
any inducements or improvement allowances shall be negotiated between the Landlord and the Tenant at such time.

	6.
	All
other terms and conditions as set out in the Lease except as specifically hereby amended shall remain in full force and effect. 

The
new monthly rental schedule, commencing February 1st, 2006 with respect to the Second Expansion Premises shall be calculated as
follows: 

	Base Rent	 	$	958.38
	($12.75 p.s.f. × 902 s.f., divide by 12)	 	 	 
	On Account of Realty Taxes	 	 	259.33
	($3.45 p.s.f. × 902 s.f., divide by 12)	 	 	 
	On Account of Maintenance and Operating Costs	 	 	586.30
	($7.80 p.s.f. × 902 s.f., divide by 12)	 	 	 
	 	 	

	 	Subtotal	 	$	1,804.01
	 	7% G.S.T.	 	 	126.28
	 	 	

	TOTAL MONTHLY RENT	 	$	1,930.29
	 	 	

	 

	 

	 

IN WITNESS WHEREOF the Parties have hereto executed this Lease Amending Agreement 

	BADENHURST-AIRWAY CENTRE LTD.	 	HOSTOPIA.COM INC.
	

	 	 
	Per:    /s/  DANIEL DRIMMER      	 	Per:    /s/  COLIN CAMPBELL      
	
	 	

	Daniel Drimmer, Vice President	 	Colin Campbell, COO

LEASE AMENDING AGREEMENT made this 1st day of June, 2006 

B E T W E E N:  

BADENHURST-AIRWAY CENTRE LTD.  

(Landlord) 

– and – 

HOSTOPIA.COM INC.  

(Tenant) 

WHEREAS
by a lease document dated the 30th day of September, 2002, made between the Landlord and the Tenant, the Landlord did demise and lease unto the Tenant a portion of the building
situate at 5915 Airport Road in the City of Mississauga in the Regional Municipality of Peel and municipally known as Suite 1100, 5915 Airport Road (the "Building"), for a
term of seven (7) years from November 1st, 2002 to October 31st, 2009, at the rent and on the terms and conditions therein more particularly set out: 

AND
WHEREAS the Landlord and the Tenant entered into a Lease Amending Agreement dated the 3rd day of February, 2005 for additional space (the "First Amending Agreement"), at the
rent and on the terms and conditions therein more particularly set out; 

AND
WHEREAS the Landlord and the Tenant entered into a Lease Amending Agreement dated the 3rd day of January, 2006 for additional space (the "Second Amending Agreement"), at the
rent and on the terms and conditions therein more particularly set out; 

AND
WHEREAS the Landlord has agreed in this Agreement to lease additional space (the "Third Expansion Premises") as of June 1st, 2006; 

AND
WHEREAS the Landlord and Tenant have agreed to amend the Lease, the First Amending Agreement and Second Amending Agreement all of which shall collectively be referred to as the "Lease", on the
terms set out in this Agreement; 

NOW
THEREFORE WITNESSETH the Landlord and the Tenant hereby covenant and agree as follows: 

	1.
	The
Landlord has agreed to lease the Third Expansion Premises on the sixth (6th) floor, being Suite 602, consisting of approximately 866 square feet
of rentable area of the Building for a total of 16,750 square feet, as of June 1st, 2006 and terminating on October 31st, 2009.

	2.
	The
Net Rental rate shall be at the same rates, namely, $12.75 per square foot, per annum, net net for the period of June 1st, 2006 to
October 31st, 2007 and $13.00 per square foot, per annum, net net for the period of November 1st, 2007 to October 31st, 2009.

	3.
	The
Tenant shall pay as Additional Rent, its proportionate share of Realty Taxes, Maintenance and Operating Costs with respect to the Third Expansion Premises estimated at $11.25 per
square foot.

	4.
	The
Tenant to take possession of the Third Expansion Premises in an "as is" condition. 

	5.
	All
other terms and conditions as set out in the Lease except as specifically hereby amended shall remain in full force and effect. 

The
new monthly rental schedule with respect to the Third Expansion Premises shall be calculated as follows: 

For the period of June 1, 2006 to June 30, 2006 — 

	Base Rent

($12.75 p.s.f. × 866 s.f., divide by 12)	 	$	920.13
	On Account of Realty Taxes

($3.45 p.s.f. × 866 s.f., divide by 12)	 	 	248.98
	On Account of Maintenance and Operating Costs

($7.80 p.s.f. × 866 s.f., divide by 12)	 	 	562.90

            
	 	 	

	 	Subtotal	 	$	1,732.01
	 	7% G.S.T.	 	 	121.24
	 	 	

	TOTAL RENT	 	$	1,853.25
	 	 	

Commencing July 1, 2006 — 

	Base Rent

($12.75 p.s.f. × 866 s.f., divide by 12)	 	$	920.13
	On Account of Realty Taxes

($3.45 p.s.f. × 866 s.f., divide by 12)	 	 	248.98
	On Account of Maintenance and Operating Costs

($7.80 p.s.f. × 866 s.f., divide by 12)	 	 	562.90

            
	 	 	

	 	Subtotal	 	$	1,732.01
	 	6% G.S.T.	 	 	103.92
	 	 	

	
TOTAL MONTHLY RENT	
 	
$	

1,835.93
	 	 	

	 

	 

	 

	 

	 

IN WITNESS WHEREOF the Parties have hereto executed this Lease Amending Agreement 

	BADENHURST-AIRWAY CENTRE LTD.	 	HOSTOPIA.COM INC.
	

	 	 	 	 	 	 
	Per:	 	/s/  DANIEL DRIMMER      	 	Per:	 	/s/  WILLIAM CAMPBELL      
	 	 	
	 	 	 	

	 	 	Daniel Drimmer, Vice President	 	 	 	William Campbell, CEO

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LEASE

SCHEDULE "A" LEGAL DESCRIPTION

SCHEDULE "B" FLOOR PLAN OF THE PREMISES

SCHEDULE "C" RULES AND REGULATIONS

AGREEMENT made this 1st day of May, 2003QuickLinks
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EXHIBIT 10.15  

	

	Dave Taylor	 	Royal Bank of Canada
	Senior Account Manager	 	Information Technology – GTA
	 	 	260 East Beaver Creek Road, Suite 201
	 	 	Richmond Hill, Ontario L4B 3M3
	 	 	Tel: (905) 764 - 1615
	 	 	Fax: (905) 764 - 4361

February 17,
2005 

Private and Confidential  

BlueGenesis.com
Corp.

c/o Hostopia.com Inc.

5915 Airport Road, 11th Floor

Mississauga, Ontario

L4V 1T1 

Attention: Mr. Mike Mugan, Chief Financial Officer  

Dear
Sirs: 

We
are pleased to offer the credit facilities described below (the "Credit Facilities"), subject to the following terms and conditions. 

DEFINITIONS AND SCHEDULES  

The
attached schedules are incorporated into this agreement by reference. Schedule "A" contains definitions of capitalized terms used and not otherwise defined in this agreement. Unless
otherwise provided, all dollar amounts are in Canadian currency and accounting terms are to be interpreted in accordance with GAAP. 

BORROWER  

BlueGenesis.com
Corp. (the "Borrower") 

LENDER  

Royal
Bank of Canada (the "Bank") 

CREDIT FACILITIES  

Facility
(1): $1,000,000 revolving demand facility, by way of: 

	(a)
	RBP
based loans ("RBP Loans");

	(b)
	RBUSBR
based loans in US currency ("RBUSBR Loans"). 

 

Each
use of the Credit Facilities is a "Borrowing" and all such usages outstanding at any time are  "Borrowings". 

PURPOSE  

Facility (1) 

Finance
payout of any credit facilities outstanding owing by the Borrower to Canadian Imperial Bank of Commerce ("CIBC") and finance general operating
requirements. 

AVAILABILITY  

Facility (1) 

The
Borrower may borrow, convert, repay and reborrow up to the amount of this revolving facility, provided: 

	(a)
	the
aggregate Borrowings outstanding under this facility must not exceed at any time the aggregate of the following, less Potential Prior-Ranking Claims
(the "Borrowing Limit"):

	(i)
	75%
of Good Domestic Accounts Receivable; and

	(b)
	this
facility is made available at the sole discretion of the Bank and the Bank may cancel or restrict availability of any unutilized portion of this facility at any time and from
time to time without notice or demand. 

REPAYMENT  

Facility (1) 

Borrowings
under this facility are expected to revolve with operating requirements. 

Notwithstanding
compliance with the covenants and all other terms and conditions of this agreement, Borrowings under this facility are repayable on demand and the Bank may terminate this facility at
any time, without notice or demand. Upon demand or termination, the Borrower shall pay to the Bank all Borrowings outstanding under this facility. 

INTEREST RATES AND FEES  

Facility (1) 

	RBP Loans:	 	RBP plus 1.50% per annum.
	RBUSBR Loans:	 	RBUSBR plus 1.50% per annum.

Arrangement Fee 

An
arrangement fee of $1,500 is payable by the Borrower upon acceptance of this agreement. This fee is non-refundable and is deemed to be earned by the Bank upon acceptance of this
agreement, to compensate for time, effort and expense incurred by the Bank in approving these facilities. 

2

 

Revolvement Fee 

An
administration fee of $100 per month, for revolving RBP Loans and RBUSBR Loans under Facility (1) is payable monthly in arrears on such date as the Bank may determine. 

Monitoring Fee 

An
administration fee of $100 per quarter, for margining advances against accounts receivable under Facility (1) is payable quarterly in arrears on such date as the Bank may determine. 

CALCULATION AND PAYMENT OF INTEREST AND FEES  

RBP Loans and RBUSBR Loans 

The
Borrower shall pay interest on each RBP Loan and RBUSBR Loan monthly in arrears, on the 26th day of each month or such other day as may be agreed to between the Borrower and the Bank. Such
interest will be calculated monthly and will accrue daily on the basis of the actual number of days elapsed and a year of 365 days. Interest on RBUSBR Loans shall be paid in US currency. 

Limit on Interest 

The
Borrower shall not be obligated to pay any interest, fees or costs under or in connection with this agreement in excess of what is permitted by law. 

Overdue Payments 

Any
amount that is not paid when due hereunder shall, unless interest is otherwise payable in respect thereof in accordance with the terms of this agreement or the instrument or contract governing
same, bear interest until paid at the rate of RBP plus 5% per annum or, in the case of an amount in US currency, RBUSBR plus 5% per annum. 

Equivalent Yearly Rates 

The
annual rates of interest or fees to which the rates calculated in accordance with this agreement are equivalent, are the rates so calculated multiplied by the actual number of days in the calendar
year in which such calculation is made and divided by 365. 

Time and Place of Payment 

Amounts
payable by the Borrower hereunder shall be paid at the Branch of Account in the applicable currency. Amounts due on a day other than a Business Day shall be deemed to be due on the Business
Day next following such day. Interest and fees payable under this agreement are payable both before and after any or all of default, maturity date, demand and judgement. 

EXCHANGE RATE FLUCTUATIONS  

If,
for any reason, the amount of Borrowings outstanding under any facility, when converted to the Equivalent Amount in Canadian currency, exceeds the amount available under such facility, the
Borrower shall immediately repay such excess or shall secure such excess to the satisfaction of the Bank. 

3

 

EVIDENCE OF INDEBTEDNESS  

The
Bank shall open and maintain at the Branch of Account accounts and records evidencing the Borrowings made available to the Borrower by the Bank under this agreement. The Bank shall record the
principal amount of each Borrowing, the payment of principal and interest and all other amounts becoming due to the Bank under this agreement. 

The
Bank's accounts and records constitute, in the absence of manifest error, conclusive evidence of the indebtedness of the Borrower to the Bank pursuant to this agreement. 

The
Borrower authorizes and directs the Bank to automatically debit, by mechanical, electronic or manual means, any bank account of the Borrower for all amounts payable by the Borrower to the Bank
pursuant to this agreement. 

GENERAL ACCOUNTS  

The
Borrower shall establish current accounts with the Bank in each of Canadian currency and US currency (each a "General Account") for the conduct of
the Borrower's day to day banking business. If the balance in a General Account: 

	(a)
	is
a credit, the Bank may apply, at any time in its discretion, the amount of such credit or part thereof, rounded to the nearest $5,000 in Canadian currency or US currency, as
applicable, as a repayment of Borrowings outstanding by way of RBP Loans or RBUSBR Loans, as applicable, under Facility (1), or

	(b)
	is
a debit, the Bank may, subject to availability, make available a Borrowing by way of an RBP Loan or RBUSBR Loan, as applicable, under Facility (1) in an amount, rounded to
the nearest $5,000 in Canadian currency or US currency, as applicable, as is required to place the General Account at not less than a zero balance. 

CONDITIONS PRECEDENT  

The
availability of any Borrowing is conditional upon the receipt of: 

	(a)
	a
duly executed copy of this agreement;

	(b)
	confirmation,
in form and substance satisfactory to the Bank, that any security given by the Borrower in support of its credit faculties with CIBC has been, or will be in due course,
released and discharged;

	(c)
	the
security provided for herein, in form and substance satisfactory to the Bank, registered as required to perfect and maintain the security created thereby and such certificates,
authorizations, resolutions and legal opinions as the Bank may reasonably require; and

	(d)
	such
financial and other information or documents relating to the Borrower or Guarantor as the Bank may reasonably require. 

4

 

SECURITY  

Security
for the Borrowings and all other obligations of the Borrower to the Bank shall include: 

	(a)
	General
security agreement on the Bank's form 924 signed by the Borrower constituting a first ranking security interest in all personal property of the Borrower; and

	(b)
	Guarantee
and postponement of claim in the amount of $1,000,000 signed by Hostopia.com Inc., supported by a general security agreement constituting a first ranking security
interest in all personal property of Hostopia.com Inc. 

REPRESENTATIONS AND WARRANTIES  

Each
of the Borrower and Guarantor represents and warrants to the Bank, which representations and warranties are deemed to be repeated as at the time of each Borrowing and/or Lease hereunder, that: 

	(a)
	it
is a corporation duly incorporated, validly existing and duly registered or qualified to carry on business in the Provinces of Nova Scotia and Ontario, in respect of the Borrower
and in the State of Delaware in respect of the Guarantor;

	(b)
	the
execution, delivery and performance by it of this agreement have been duly authorized by all necessary actions and do not violate its constating documents or any Applicable Laws
or agreements to which it is subject or by which it is bound;

	(c)
	its
most recent financial statements provided to the Bank fairly present its financial position as of the date thereof and its results of operations and cash flows for the fiscal
period covered thereby, and since the date of such financial statements, there has occurred no material adverse change in its business or financial condition;

	(d)
	there
is no claim, action, prosecution or other proceeding of any kind pending or threatened against it or any of its assets or properties before any court or administrative agency
which relates to any non-compliance with any Environmental Law or any Release from its lands of a Contaminant into the natural environment or which, if adversely determined, might have a
material adverse effect upon its financial condition or operations or its ability to perform its obligations under this agreement or any of the Bank's security, and there are no circumstances of which
it is aware which might give rise to any such proceeding which it has not fully disclosed to the Bank;

	(e)
	it
has good and marketable title to all of its properties and assets, free and clear of any encumbrances, other than as may be provided for herein;

	(f)
	it
is in compliance in all material respects with all Applicable Laws including, without limitation, all Environmental Laws;

	(g)
	it
possesses all licenses, patents, trade marks, service marks and copyrights, free from material restrictions, that are necessary for the ownership, maintenance and operation of its
assets and businesses and it is not in violation of any rights of others with respect to any of the foregoing; 

5

 

	(h)
	no
event has occurred which constitutes, or which, with notice, lapse of time, or both, would constitute, a breach of any covenant or other term or condition of this agreement or any
security agreement given in connection therewith; and

	(i)
	it
has filed all material tax returns which were required to be filed by it, paid or made provision for payment of all taxes and Potential Prior-Ranking Claims (including interest and
penalties) which are due and payable, and provided adequate reserves for payment of any tax, the payment of which is being contested. 

REPORTING COVENANTS  

The
Borrower covenants and agrees with the Bank, while this agreement is in effect, to provide the Bank with: 

	(a)
	quarterly
Compliance Certificate, substantially in the form of Schedule "C" within 45 days of each fiscal quarter end, certifying compliance with this agreement;

	(b)
	quarterly
Borrowing Limit Certificate, substantially in the form of Schedule "B", within 45 days of each fiscal quarter end;

	(c)
	annual
company prepared unit financial statements for the Borrower, within 120 days of each fiscal year end; and

	(d)
	such
other financial and operating statements and reports as and when the Bank may reasonably require. 

The
Guarantor covenants and agrees with the Bank, while this agreement is in effect, to provide the Bank with: 

	(e)
	quarterly
company prepared consolidated financial statements for the Guarantor, within 45 days of each fiscal quarter end;

	(f)
	quarterly
Compliance Certificate, substantially in the form of Schedule "D", within 45 days of each fiscal quarter end, certifying compliance with this agreement
including the financial covenants set forth below;

	(g)
	annual
audited consolidated financial statements for the Guarantor, within 120 days of each fiscal year end;

	(h)
	annual
forecasted consolidated balance sheet and income and cash flow statements from the Guarantor, prepared on a quarterly basis for the next following fiscal year, within
120 days of each fiscal year end; and 

6

 

	(i)
	such
other financial and operating statements and reports as and when the Bank may reasonably require. 

GENERAL COVENANTS  

The
Borrower covenants and agrees with the Bank, while this agreement is in effect: 

	(a)
	to
pay all sums of money when due by it under this agreement;

	(b)
	to
provide the Bank with prompt written notice of any event which constitutes, or which, with notice, lapse of time, or both, would constitute a breach of any covenant or other term
or condition of this agreement or any security agreement given in connection therewith;

	(c)
	to
give the Bank 30 days prior written notice of any intended change in the ownership of its shares and not to consent to or facilitate a change in the ownership of its shares
without the prior written consent of the Bank;

	(d)
	to
keep its assets fully insured against such perils and in such manner as would be customarily insured by Persons carrying on a similar business or owning similar assets;

	(e)
	to
file all material tax returns which are to be filed by it from time to time, to pay or make provision for payment of all taxes (including interest and penalties) and Potential
Prior-Ranking Claims when due, and to provide adequate reserves for the payment of any tax, the payment of which is being contested;

	(f)
	to
comply in all material respects with all Applicable Laws including, without limitation, all Environmental Laws;

	(g)
	not
to, without the prior written consent of the Bank, grant, create, assume or suffer to exist any mortgage, charge, lien, pledge, security interest or other encumbrance affecting
any of its properties, assets or other rights;

	(h)
	not
to, without the prior written consent of the Bank, sell, transfer, convey, lease or otherwise dispose of any of its properties or assets other than in the ordinary course of
business and on commercially reasonable terms;

	(i)
	not
to, without the prior written consent of the Bank, guarantee or otherwise provide for, on a direct, indirect or contingent basis, the payment of any monies or performance of any
obligations by any other Person, except as may be provided for herein;

	(j)
	not
to, without the prior written consent of the Bank, merge, amalgamate, or otherwise enter into any other form of business combination with any other Person;

	(k)
	to
provide the Bank with prompt written notice of any non-compliance by the Borrower with any Environmental Laws or any Release from the land of the Borrower of a
Contaminant into the natural environment and to indemnify and save harmless the Bank from all liability or loss as a result of an Environmental Activity or any non-compliance with any
Environmental Law; and 

7

 

	(l)
	to
permit the Bank or its representatives, from time to time, to visit and inspect the Borrower's premises, properties and assets and examine and obtain copies of the Borrower's
records or other information and discuss the Borrower's affairs with the auditors, counsel and other professional advisers of the Borrower. 

FINANCIAL COVENANTS  

The
Guarantor covenants and agrees with the Bank, while this agreement is in effect: 

	(a)
	to
maintain on a consolidated basis, to be measured as at the end of each fiscal quarter:

	(i)
	a
ratio of Current Assets to Current Liabilities of not less than 1.0:1;

	(ii)
	a
ratio of Total Liabilities to Tangible Net Worth of not greater than 1.50:1; and

	(iii)
	Tangible
Net Worth of at least $1,500,000. 

Nothing
contained in the foregoing Covenants sections shall limit any right of the Bank under this agreement to terminate or demand payment of, or cancel or restrict availability of any unutilized
portion of, any demand or other discretionary facility made available under this agreement. 

SUCCESSORS AND ASSIGNS  

This
agreement shall be binding upon and enure to the benefit of the parties and their respective successors and permitted assigns. 

The
Bank may assign all or part of its rights and obligations under this agreement to any Person. The rights and obligations of the Borrower under this agreement may not be assigned without the prior
written consent of the Bank. 

The
Bank may disclose to potential or actual assignees confidential information regarding the Borrower (including, any such information provided by the Borrower to the Bank) and shall not be liable
for any such disclosure. 

GENERAL  

Expenses 

The
Borrower agrees to pay all fees (including legal fees), costs and expenses incurred by the Bank in connection with the preparation, negotiation and documentation of this agreement and the security
provided for herein and the operation or enforcement of this agreement and the security provided for herein. 

8

 

Review 

The
Bank may conduct periodic reviews of the affairs of the Borrower, as and when determined by the Bank, for the purpose of evaluating the financial condition of the Borrower. The Borrower shall make
available to the Bank such financial statements and other information and documentation as the Bank may reasonably require and shall do all things reasonably necessary to facilitate such review by the
Bank. 

Potential Prior-Ranking Claims 

The
Borrower hereby grants its consent (such grant to remain in force as long as this agreement is in effect or any Borrowings are outstanding) to any Person having information relating to any
Potential Prior-Ranking Claim arising by any law, statute, regulation or otherwise and including, without limitation, claims by or on behalf of government to release such information to the Bank at
any time upon its written request for the purpose of assisting the Bank to evaluate the financial condition of the Borrower. 

Set Off 

The
Bank is authorized, but not obligated, at any time, to apply any credit balance, whether or not then due, to which the Borrower is entitled on any account in any currency at any branch or office
of the Bank in or towards satisfaction of the obligations of the Borrower due to the Bank under this agreement. The Bank is authorized to use any such credit balance to buy such other currencies as
may be necessary to effect such application. 

Non-Merger 

The
provisions of this agreement shall not merge with any security provided to the Bank, but shall continue in full force for the benefit of the parties hereto. 

Amendments and Waivers 

No
amendment or waiver of any provision of this agreement will be effective unless it is in writing signed by the Borrower and the Bank. No failure or delay, on the part of the Bank, in exercising any
right or power hereunder or under any security document shall operate as a waiver thereof. The Guarantor agrees that the amendment or waiver of any provision of this agreement (other than agreements,
covenants or representations expressly made by the Guarantor herein, if any) may be made without and does not require the consent or agreement of, or notice to, the Guarantor. 

Severability 

If
any provision of this agreement is or becomes prohibited or unenforceable in any jurisdiction, such prohibition or unenforceability shall not invalidate or render unenforceable the provision
concerned in any other jurisdiction nor invalidate, affect or impair any of the remaining provisions of this agreement. 

Life Insurance Options 

The
Borrower acknowledges that Borrowings are not insured under the Bank's Business Loan Insurance Plan. 

9

 

Judgement Currency 

If
for the purpose of obtaining judgement in any court in any jurisdiction with respect to this agreement, it is necessary to convert into the currency of such jurisdiction (the "Judgement
Currency") any amount due hereunder in any currency other than the Judgement Currency, then conversion shall be made at the rate of exchange prevailing on the Business Day before the day on which
judgement is given. For this purpose "rate of exchange" means the rate at which the Bank would, on the relevant date, be prepared to sell a similar amount of such currency in the Toronto foreign
exchange market, against the Judgement Currency, in accordance with normal banking procedures. 

In
the event that there is a change in the rate of exchange prevailing between the Business Day before the day on which judgement is given and the date of payment of the amount due, the Borrower will,
on the date of payment, pay such additional amounts as may be necessary to ensure that the amount paid on such date is the amount in the Judgement Currency which, when converted at the rate of
exchange prevailing on the date of payment, is the amount then due under this agreement in such other currency together with interest at RBP and expenses (including legal fees on a solicitor and
client basis). Any additional amount due from the Borrower under this section will be due as a separate debt and shall not be affected by judgement being obtained for any other sums due under or in
respect of this agreement. 

Governing Law 

This
agreement shall be construed in accordance with and governed by the laws of the Province of Ontario and of Canada applicable therein. 

Whole Agreement 

This
agreement, the security and any other written agreement delivered pursuant to or referred to in this agreement constitute the whole and entire agreement between the parties in respect of the
Credit Facilities. There are no verbal agreements, undertakings or representations in connection with the Credit Facilities. 

Joint and Several 

Where
more than one Person is liable as Borrower or Guarantor for any obligation under this agreement, then the liability of each such Person for such obligation is joint and several with each other
such Person. 

Counterpart Execution 

This
agreement may be executed in any number of counterparts and by different parties in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken
together constitute one and the same instrument. 

Time 

Time
shall be of the essence in all provisions of this agreement. 

Acceptance 

This
offer is open for acceptance until March 18, 2005, after which date it will be null and void, unless extended in writing by the Bank. 

10

 

Please
confirm your acceptance of this agreement by signing the attached copy of this letter in the space provided below and returning it to the undersigned. 

Yours
truly, 

	 

	 

/s/  DAVE TAYLOR      

	 

Dave Taylor 

Senior
Account Manager 

/spa

	 

	 

	 

We acknowledge and accept the foregoing terms and conditions as of     February 18    , 2005. 

BLUEGENESIS.COM CORP.  

	
 By:	
 	

/s/  MICHAEL MUGAN      	
 	

 
	 	 	
	 	 
	Name:	 	 	 	 
	 	 	
	 	 
	Title:	 	 	 	 
	 	 	
	 	 
	
	 	 	 	 
	By:	 	/s/  COLIN CAMPBELL      	 	 
	 	 	
	 	 
	Name:	 	 	 	 
	 	 	
	 	 
	Title:	 	 	 	 
	 	 	
	 	 

I/We
have authority to bind the corporation. 

	 

	 

	 

We acknowledge and accept the foregoing terms and conditions as of     February 18    , 2005. 

HOSTOPIA.COM INC.  

	
 By:	
 	

/s/  MICHAEL MUGAN      	
 	

 
	 	 	
	 	 
	Name:	 	 	 	 
	 	 	
	 	 
	Title:	 	 	 	 
	 	 	
	 	 
	
	 	 	 	 
	By:	 	/s/  COLIN CAMPBELL      	 	 
	 	 	
	 	 
	Name:	 	 	 	 
	 	 	
	 	 
	Title:	 	 	 	 
	 	 	
	 	 

I/We
have authority to bind the corporation. 

11

Schedule "A" to the agreement dated February 17, 2005, between BlueGenesis.com Corp., as Borrower, and Royal Bank of Canada, as the
Bank. 

 
 

DEFINITIONS

For
the purpose of this agreement, the following terms and phrases shall have the following meanings: 

"Applicable Laws" means, with respect to any Person, property, transaction or event, all present or future Applicable Laws, statutes, regulations,
rules, orders, codes, treaties, conventions, judgments, awards, determinations and decrees of any governmental, regulatory, fiscal or monetary body or court of competent jurisdiction in any applicable
jurisdiction; 

"Branch of Account" means the branch of the Bank at which the Borrower's accounts are maintained. As at the date of this agreement, the  "Branch of Account" is
the Bank's branch at 6205 Airport Road, Mississauga, Ontario; 

"Business Day" means a day, excluding Saturday, Sunday and any other day which shall be a legal holiday or a day on which banking institutions are
closed in the province of the Branch of Account; 

"Contaminant" includes, without limitation, any pollutant, dangerous substance, liquid waste, industrial waste, hazardous material, hazardous substance
or contaminant including any of the foregoing as defined in any Environmental Law; 

"Current Assets" means, at any time, those assets ordinarily realizable within one year from the date of determination or within the normal operating
cycle, where such cycle is longer than a year; 

"Current Liabilities" means, at any time, amounts payable within one year from the date of determination or within the normal operating cycle, where
such cycle is longer than a year (the operating cycle must correspond with that used for current assets); 

"Domestic Countries Persons" means Persons whose chief operating activities are located in the United States of America or Canada; 

"Environmental Activity" means any activity, event or circumstance in respect of a Contaminant, including, without limitation, its storage, use,
holding, collection, purchase, accumulation, assessment, generation, manufacture, construction, processing, treatment, stabilization, disposition, handling or transportation, or its Release into the
natural environment, including movement through or in the air, soil, surface water or groundwater; 

"Environmental Laws" means all Applicable Laws relating to the environment or occupational health and safety, or any Environmental Activity; 

"Equity" means the total of share capital (including, without limitation, preferred shares), contributed surplus and retained earnings; 

 

"Equivalent Amount" means, with respect to an amount of any currency, the amount of any other currency required to purchase that amount of the first
mentioned currency through the Bank in Toronto, in accordance with normal banking procedures; 

"GAAP" means, generally accepted accounting principles in effect from time to time in Canada applied in a consistent manner from period to period; 

"Good Accounts Receivable" means accounts receivable of the Guarantor on a consolidated basis excluding (i) the entire amount of accounts, any
portion of which is outstanding more than 90 days after billing date, provided that the under 90 day portion may be included where the Bank has designated such portion as nevertheless
good, (ii) all amounts due from any affiliate, (iii) bad or doubtful accounts, (iv) accounts subject to any security interest or other encumbrance ranking or capable of ranking in
priority to the Bank's security, (v) the amount of all holdbacks, contra accounts or rights of set-off on the part of any account debtor, or (vii) any accounts which the Bank
has previously advised to be ineligible; 

"Good Domestic Accounts Receivable" means Good Accounts Receivable owing by Domestic Countries Persons; 

"Guarantor" means Hostopia.com Inc., a Delaware corporation; 

"Person" includes an individual, a partnership, a joint venture, a trust, an unincorporated organization, a company, a corporation, an association, a
government or any department or agency thereof, and any other incorporated or unincorporated entity; 

"Potential Prior-Ranking Claims" means all amounts owing or required to be paid, where the failure to pay any such amount could give rise to a claim
pursuant to any law, statute, regulation or otherwise, which ranks or is capable of ranking in priority to the Bank's security or otherwise in priority to any claim by the Bank for repayment of any
amounts owing under this agreement; 

"RBP" and "Royal Bank Prime" each means the annual rate of interest announced by the Bank from time to
time as being a reference rate then in effect for determining interest rates on commercial loans made in Canadian currency in Canada; 

"RBUSBR" and "Royal Bank US Base Rate" each means the annual rate of interest announced by the Bank from
time to time as a reference rate then in effect for determining interest rates on commercial loans made in US currency in Canada; 

"Release" includes discharge, spray, inject, inoculate, abandon, deposit, spill, leak, seep, pour, emit, empty, throw, dump, place and exhaust, and when
used as a noun has a similar meaning; 

"Tangible Net Worth" means the total of Equity less intangibles, deferred charges and leasehold improvements. For the purpose hereof, intangibles are
assets lacking physical substance; 

"Total Liabilities" means all liabilities, exclusive of deferred tax liabilities and preferred shares; 

"US" means United States of America. 

2

Schedule "B" to the agreement dated February 17, 2005 between BlueGenesis.com Corp., as Borrower, and Royal Bank of Canada, as the
Bank. 

 
 

BORROWING LIMIT CERTIFICATE

I,
                        , the
                         of BlueGenesis.com Corp. (the "Borrower") hereby certify as of fiscal quarter ending
                        : 

	1.
	I
am familiar with and have examined the provisions of the letter agreement (the "Agreement") dated February 17, 2005, between BlueGenesis.com Corp., as Borrower, and
Royal Bank of Canada (the "Bank"), as the Bank, and have made reasonable investigations of corporate records and inquiries of other officers and senior personnel of the Borrower. Terms defined
in the Agreement have the same meanings where used in this certificate.

	2.
	The
Borrowing Limit is $                        , calculated as follows: 

	 total accounts receivables of the Guarantor on a consolidated basis owing by Domestic Countries Persons	 	$	 	 
	 	 	 	 	 	 	 	 	
	 
	Less:	 	(a)	Domestic Countries Persons accounts, any portion of which exceeds 90 days	 	($	              	)
	 	 	 	 	 	 	 	 	
	 
	 	 	(b)	Domestic Countries Persons accounts due from affiliates	 	($	              	)
	 	 	 	 	 	 	 	 	
	 
	 	 	(c)	"Under 90 days" Domestic Countries Persons accounts where collection is suspect	 	($	              	)
	 	 	 	 	 	 	 	 	
	 
	 	 	(d)	Domestic Countries Persons accounts subject to prior encumbrances	 	($	              	)
	 	 	 	 	 	 	 	 	
	 
	 	 	(e)	Holdbacks, contra-accounts or rights of set-off	 	($	              	)
	 	 	 	 	 	 	 	 	
	 
	 	 	(f)	other ineligible Domestic Countries Persons accounts	 	($	              	)
	 	 	 	 	 	 	 	 	
	 
	Plus:	 	(g)	Under 90 day portion of Domestic Countries Persons accounts included in (a) above, which the Bank has designated as nevertheless good	 	$	 	 
	 	 	 	 	 	 	 	 	
	 
	 Good Domestic Accounts Receivable	 	A $	 	 
	 	 	 	 	 	 	 	 	
	 
	 marginable Good Domestic Accounts Receivable at 75% of A	 	B $	 	 
	 	 	 	 	 	 	 	 	
	 
	Less:	 	Potential Prior-Ranking Claims	 	C ($	 	)	 	 	 
	 	 	 	 	 	
	 	 	 	 
	 Borrowing Limit (B-C)	 	$	 	 
	 	 	 	 	 	 	 	 	
	 
	 Margin Surplus (Deficit)	 	$	 	 
	 	 	 	 	 	 	 	 	
	 

 
	3.
	Annexed
hereto are the following reports in respect of the Guarantor:

	(a)
	aged
list of accounts receivable,

	(b)
	listing
of Potential Prior-Ranking Claims.

	4.
	The
reports and information provided herewith are accurate and complete in all respects and all amounts certified as Potential Prior-Ranking Claims are current amounts owing and not in
arrears. 

Dated
this                          day of
                        , 20    . 

	Per:	 	 	 	 
	 	 	
	 	 
	Name:	 	 	 	 
	 	 	
	 	 
	Title:	 	 	 	 
	 	 	
	 	 

2

Schedule "C" to the agreement dated February 17, 2005, between BlueGenesis.com Corp., as Borrower, and Royal Bank of Canada, as the
Bank. 

 
 

COMPLIANCE CERTIFICATE

        I,                         , the
                         of BlueGeneis.com Corp. (the "Borrower") hereby certify
as of fiscal quarter ending                         : 

	1.
	I
am familiar with and have examined the provisions of the letter agreement (the "Agreement") dated February 17, 2005, between Bluegenesis.com Corp., as Borrower, and
Royal Bank of Canada (the "Bank"), as the Bank, and have made reasonable investigations of corporate records and inquiries of other officers and senior personnel of the Borrower and Guarantor.
Terms defined in the Agreement have the same meanings when used in this certificate.

	2.
	The
representations and warranties contained in the Agreement are true and correct.

	3.
	No
event or circumstance has occurred which constitutes or which, with the giving of notice, lapse of time, or both, would constitute a breach of any covenant or other term or
condition of the Agreement and there is no reason to believe that during the next fiscal quarter of the Borrower, any such event or circumstance will occur.

	4.
	The
detailed calculations of the foregoing ratios and covenants is set forth in the addendum annexed hereto and are true and correct in all respects. 

Dated
this                        day
of                        , 20     .
 

	Per:	 	 	 	 
	 	 	
	 	 
	Name:	 	 	 	 
	 	 	
	 	 
	Title:	 	 	 	 
	 	 	
	 	 

Schedule "D" to the agreement dated February 17, 2005, between BlueGenesis.com Corp., as Borrower, and Royal Bank of Canada, as the
Bank. 

 
 

COMPLIANCE CERTIFICATE

        I,                         , the
                         of Hostopia.com Inc. (the "Guarantor") hereby
certify as of fiscal quarter ending                         : 

	1.
	I
am familiar with and have examined the provisions of the letter agreement (the "Agreement") dated February 17, 2005, between Bluegenesis.com Corp., as Borrower, and
Royal Bank of Canada (the "Bank"), as the Bank, and have made reasonable investigations of corporate records and inquiries of other officers and senior personnel of the Borrower and Guarantor.
Terms defined in the Agreement have the same meanings when used in this certificate.

	2.
	The
representations and warranties contained in the Agreement are true and correct.

	3.
	No
event or circumstance has occurred which constitutes or which, with the giving of notice, lapse of time, or both, would constitute a breach of any covenant or other term or
condition of the Agreement and there is no reason to believe that during the next fiscal quarter of the Guarantor, any such event or circumstance will occur.

	4.
	The
ratio of Current Assets to Current Liabilities is             :1, being not less than the required minimum ratio of 1.0:1.

	5.
	The
ratio of Total Liabilities to Tangible Net Worth is             :1, being not greater than the maximum ratio of 1.50:1.

	6.
	Tangible
Net Worth is $                        , being not less than the required minimum amount of $1,500,000.

	7.
	The
detailed calculations of the foregoing ratios and covenants is set forth in the addendum annexed hereto and are true and correct in all respects. 

Dated
this                        day
of                        , 20     .
 

	Per:	 	 	 	 
	 	 	
	 	 
	Name:	 	 	 	 
	 	 	
	 	 
	Title:	 	 	 	 
	 	 	
	 	 

QuickLinks

DEFINITIONS

BORROWING LIMIT CERTIFICATE

COMPLIANCE CERTIFICATE

COMPLIANCE CERTIFICATE

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