Document:

EXHIBIT 10.3

                             LOAN CONVERSION LETTER

                                                                October 29, 2004

Securac Corp.
2500, 520-5th Avenue SW
Calgary, Alberta T2P 1V6

      Re:   Loan Conversion

Ladies and Gentlemen:

      Reference is made to that certain loan in the aggregate  principal  amount
of  $175,000  (US),  provided by the  undersigned  to Securac  Inc.,  an Alberta
corporation, on October 30 and November 28, 2003 (the "Loan"). The loan bears no
interest and is repayable on demand. The Loan was not made pursuant to a written
agreement,  and no promissory note was issued by the borrower in connection with
the Loan.

      The  undersigned  hereby  agrees to convert the full amount of the loan to
shares of common stock,  $.01 par value, of Securac Corp., a Nevada  corporation
(the  "Company") and parent of Securac Inc., at the rate of $.50 (US) per share,
for an aggregate of 350,000 shares (the "Subscribed Shares"). In connection with
the  conversion,   the  undersigned   will  also  receive,   for  no  additional
consideration,  warrants to purchase a like number of shares of common  stock of
the  Company,  exercisable  at an  exercise  price  of $.75 per  share  (US) and
expiring on the second  anniversary  of the date of this letter.  The conversion
will occur on the date hereof,  subject to approval of the Board of Directors of
Securac Corp. Effective upon issuance and delivery to the undersigned of a stock
certificate  evidencing  350,000 shares of common stock of Securac Corp. and the
related warrant  certificate,  the  undersigned  and its directors,  management,
shareholders  and affiliates from and against any and all claims and liabilities
in connection with the Loan.

      The Company agrees to include the Subscribed  Shares and shares underlying
the related  warrants in the next  registration  statement on Form SB-2 filed by
the Company for the resale of shares held by existing securityholders; provided,
however,  that  the  Company's  obligation  hereunder  shall be  subject  to the
undersigned and its affiliates  providing the Company with such  information and
agreements,  including  a lock-up  agreement,  as the  Company  may, in its sole
discretion,  require of shareholders generally whose shares are included in such
registration statement.

2.    Representations and Warranties of Undersigned:

      2.1.  The  undersigned  hereby  acknowledges,  represents  and warrants to
            Securac Inc. and Securac Corp.:

<PAGE>

            2.1.1.The  undersigned  is  acquiring  the  Subscribed   Shares  and
                  related  warrants  for  the  undersigned's  own  account,  for
                  investment  purposes only, and not with a view to or for or in
                  connection with the resale or public distribution  thereof, in
                  whole or in part.

            2.1.2.The   undersigned   has  read   carefully  the  definition  of
                  "Accredited  Investor"  contained  in  Exhibit A  hereto.  The
                  undersigned  meets the standards of an  "Accredited  Investor"
                  set forth under Rule 501(a) of  Regulation D under the Act and
                  has such  knowledge  and  experience in financial and business
                  matters  that the  undersigned  is capable of  evaluating  the
                  merits  and  risks  of  an  investment  in  the  Company.  The
                  undersigned will promptly notify the Company in the event that
                  prior to the full exercise or expiration of the aforementioned
                  warrants the foregoing representation ceases to be accurate.

            2.1.3.Undersigned  has the knowledge and  experience to evaluate the
                  Company and the risks and merits relating thereto.

            2.1.4.Undersigned  understands  the terms of the Loan conversion and
                  is not  relying on any  summary  term sheet that may have been
                  provided by the Company or any other person.

            2.1.5.Undersigned  has been given the  opportunity  to ask questions
                  of, and  receive  answers  from,  the Company  concerning  the
                  Company and other matters  pertaining to this investment,  and
                  to obtain any additional information requested.

            2.1.6.Undersigned  has  determined  that the  Subscribed  Shares and
                  related  warrants are a suitable  investment  and that at this
                  time  the   undersigned  can  bear  a  complete  loss  of  the
                  investment.

            2.1.7.Undersigned   understands  that  (i)  although  the  Company's
                  common stock is quoted on the NASD OTC Bulletin Board, trading
                  in such stock is extremely illiquid and volatile and there can
                  be no assurance  that the market for such stock will  improve,
                  (ii) the Subscribed Shares and any shares issued upon exercise
                  of the warrants will be subject to substantial restrictions on
                  transferability  and resale under state and federal securities
                  laws  and  pursuant  to  the  provisions  hereof,   (iii)  the
                  certificates  representing  the Subscribed  Shares and related
                  warrants will bear a Securities Act restrictive legend in such
                  form  as is  typically  used  by the  Company,  and  (iv)  the
                  undersigned  may be unable to liquidate an  investment  in the
                  Company  and,  therefore,  should  be  prepared  to  bear  the
                  economic   risk  of  an  investment  in  the  Company  for  an
                  indefinite period.

            2.1.8.The  address  set  forth  below  is  the  undersigned's   true
                  domicile.   Any  required  governmental  filings  or  consents
                  necessary for, or required to be made in connection  with, the
                  offer and sale of the  Subscribed  Shares  to the  undersigned
                  have been made.

            2.1.9.The execution,  delivery and performance  under this agreement
                  does not  conflict  with any  rule,  regulation,  judgment  or
                  agreement applicable to the undersigned.

<PAGE>

                                           Sincerely,

                                           /s/ Peter Rochow
                                           -----------------------------
                                           Douglas Park Capital Ltd.
                                           Suite 2750, Sun Life Plaza II
                                           140 - 4th Avenue,  SW
                                           Calgary, Alberta
                                           T2P 3N3

Acknowledged and Agreed:

SECURAC CORP.

By: /s/ Paul James Hookham
Name: Paul James Hookham
Title:   Chief Financial Officer

<PAGE>

                                    EXHIBIT A

                         Investor Suitability Standards

      An "accredited investor",  as defined in Rule 501(a) promulgated under the
Securities Act of 1933, means:

      (1)   A bank as defined in Section  3(a)(2) of the  Securities  Act,  or a
            savings  and loan  association  or other  institution  as defined in
            Section  3(a)(5)(A) of the  Securities  Act,  whether  acting in its
            individual  or  fiduciary  capacity;  a broker or dealer  registered
            pursuant to Section 15 of the  Securities  Exchange Act of 1934;  an
            insurance company as defined in Section 2(13) of the Securities Act;
            an investment company registered under the Investment Company Act of
            1940  or a  business  development  company  as  defined  in  Section
            2(a)(48) of that Act; a Small Business  Investment  Company licensed
            by the United  States Small  Business  Administration  under Section
            301(c) or (d) of the Small  Business  Investment Act of 1958; a plan
            established and maintained by a state,  its political  subdivisions,
            or any  agency  or  instrumentality  of a  state  or  its  political
            subdivisions,  for the  benefit of its  employees,  if such plan has
            total  assets in excess of  $5,000,000;  an  employee  benefit  plan
            within the meaning of the Employee Retirement Income Preferred Stock
            Act of 1974 ("ERISA"),  if the investment decision is made by a plan
            fiduciary,  as defined in Section 3(21) of ERISA,  which is either a
            bank, savings and loan association, insurance company, or registered
            investment advisor, or if the employee benefit plan has total assets
            in  excess  of  $5,000,000  or, is a  self-directed  plan,  with the
            investment  decisions  made  solely by persons  that are  accredited
            investors;

      (2)   A  private  business  development  company  as  defined  in  Section
            202(a)(22) of the Investment Advisers Act of 1940;

      (3)   An  organization  described  in Section  501(c)(3)  of the  Internal
            Revenue Code, corporation,  Massachusetts or similar business trust,
            or partnership, not formed for the specific purpose of acquiring the
            Shares, with total assets in excess of $5,000,000;

      (4)   A director or executive officer of the Company;

      (5)   A natural person whose individual net worth, or joint net worth with
            that person's spouse,  at the time of such person's  purchase of the
            Shares exceeds $1,000,000;

<PAGE>

      (6)   A natural person who had an individual  income in excess of $200,000
            in each of the two  most  recent  years or joint  income  with  that
            person's  spouse in excess of  $300,000  in each of those  years and
            which has a reasonable expectation of reaching the same income level
            in the current year;

      (7)   A trust with total  assets in excess of  $5,000,000,  not formed for
            the specific  purpose of  acquiring  the Shares,  whose  purchase is
            directed   by  a   sophisticated   person  as   described   in  Rule
            506(b)(2)(ii) of Regulation D; or

      (8)   An  entity  in  which  all  of the  equity  owners  are  "accredited
            investors" under one or more of the foregoing categories.EXHIBIT 10.4

                              LEASE OF OFFICE SPACE

This Lease made as of June 30, 2003.

BETWEEN:
                 CONSOLIDATED PROPERTIES (520 - 5TH AVENUE) LTD.

                   (hereinafter referred to as the "Landlord")

                                     -and -

                        PARADIGM GEOPHYSICAL CANADA LTD.

                    (hereinafter referred to as the "Tenant")

      IN  CONSIDERATION  of the  mutual  covenants  hereinafter  contained,  the
Landlord and the Tenant hereby agree as follows:

                                    ARTICLE 1
                                   DEFINITIONS

1.1   DEFINITIONS

      In this Lease:

      (a)   "Annual  Rent"  means the amount  payable by Tenant to  Landlord  in
            respect  of each  year  of the  Term or any  portion  thereof  under
            Article 4.1;

      (b)   "Area A Premises"  means  those  premises  containing  approximately
            8,076 square feet of Rentable Area on the 25th floor of the Building
            and cross-hatched in black on the plan attached as Schedule A;

      (c)   "Area A Premises Commencement Date" means October 1, 2003;

      (d)   "Area B Premises"  means  those  premises  containing  approximately
            8,025 square feet of Rentable  Area on the 6th floor of the Building
            and cross-hatched in black on the plan attached as Schedule A-l;

      (e)   "Area B Premises Commencement Date" means October 1, 2003;

      (f)   "Area C Premises"  means  those  premises  containing  approximately
            4,000 square feet of Rentable  Area on the 6th floor of the Building
            and  outlined in heavy black on the plan  attached as Schedule  A-l;

      (g)   "Area C Premises Commencement Date" means April 1, 2005;

      (h)   "Architect" means such firm of professional architects, engineers or
            surveyors  as the  Landlord may select from time to time engaged for
            preparation of construction drawings for the Building or for general
            supervision of architectural and engineering  aspects and operations
            thereof  or for the  measurement  of the  Building  of part or parts
            thereof and includes any  consultant(s)  from time to time appointed
            by Landlord or the Architect  whenever such  consultant(s) is acting
            within the scope of his  appointment  and  specialty;

      (i)   "Article" means an article of this Lease;

<PAGE>

      (j)   "BOMA  Standard"  means the American  National  Standard  Method for
            Measuring Floor Area in Office Buildings (ANSI/BOMA Z65.1-1996);

      (k)   "Building" means the office building known as 520 - 5th Avenue S.W.,
            Calgary,  Alberta,  in which the  Premises  are located and which is
            situate on the Land;

      (1)   "Commencement   Date"  means,   collectively  the  Area  A  Premises
            Commencement  Date,  the Area B Premises  Commencement  Date and the
            Area C Premises Commencement Date;

      (m)   "Common  Areas"  means at any time  those  portions  of the Land and
            Building  which  are  provided  to be used in  common  by (or by the
            subleases,  agents, employees,  customers or licensees of) Landlord,
            Tenant,  and other tenants of the Building,  whether or not the same
            are open to the general  public,  and shall  include  any  fixtures,
            chattels,   systems,  decor,  signs,   facilities,   or  landscaping
            contained therein or maintained or used in connection therewith, and
            shall be deemed to include the city  sidewalks  adjacent to the Land
            and pedestrian  walkway  system,  park, or other public  facility in
            respect  of  which   Landlord  is  from  time  to  time  subject  to
            obligations  in its  capacity  as owner or tenant of the Land and/or
            Building.  All  expenses  incurred by Landlord  in  maintenance  and
            operation  of Common  Areas shall be included in the  definition  of
            "Operating Expenses" set forth in Schedule C;

      (n)   "Environmental  Claim" means all claims,  losses,  costs,  expenses,
            fines,  penalties,  payments  and/or  damages  (including,   without
            limitation,  all solicitors'  fees and  disbursements on a solicitor
            and his own client  basis)  relating to,  arising out of,  resulting
            from or in any way  connected  with the  presence  of any  Hazardous
            Substance  at the  Premises  or the  Land  or  Building,  including,
            without  limitation,  all costs and  expenses of any  investigation,
            remediation,  restoration or monitoring of the Premises, the Land or
            Building  and/or any  property  adjoining  or in the vicinity of the
            Land or Building required or mandated by Environmental Law;

      (o)   "Environmental Law" means any law, by law, order, ordinance, ruling,
            regulation,  certificate,  approval,  policy, guideline,  consent or
            directive  of  any  applicable  federal,   provincial  or  municipal
            government,  governmental department, agency or regulatory authority
            or any Court of  competent  jurisdiction,  as well as any common law
            obligations or requirements, relating to environmental or health and
            safety matters and/or  regulating the generation,  import,  storage,
            distribution,  labeling, sale, use, handling,  transport or disposal
            of any Hazardous Substance which may be in force from time to time;

      (p)   "Fiscal  Year"  means a twelve  month  period  (all or part of which
            falls within the Term) from time to time determined by Landlord,  at
            the end of which  Landlord's  books in respect of the  Building  are
            balanced for  auditing  and/or  taxation  purposes;

      (q)   "Hazardous Substance" means:

            (i)   any material or substance  declared or deemed to be hazardous,
                  deleterious,  caustic,  dangerous,  a dangerous good, toxic, a
                  contaminant,  a waste, a source of a contaminant,  a pollutant
                  or toxic under any Environmental Law;

                                       2
<PAGE>

            (ii)  any solid,  liquid, gas or odour or combination of any of them
                  that,  if emitted into the air,  would create or contribute to
                  the creation of a condition of the air that:

                  (1)   endangers  the  health,  safety or welfare of persons or
                        the health of animal life;

                  (2)   interferes with normal enjoyment of life or property; or

                  (3)   causes damage to plant life or to property; and

            (iii) any substance which is hazardous to the environment, including
                  persons  or  property  and  includes,   without  limiting  the
                  generality of the foregoing,  the following:

                  (1)   radioactive materials;

                  (2)   explosives;

                  (3)   any substance that, if added to any water, would degrade
                        or alter or form part of a  process  of  degradation  or
                        alteration  of the  quality  of that water to the extent
                        that  it is  detrimental  to  its  use  by man or by any
                        animal,  fish or plant.

      (r)   "Land"  means  those lands  located in the City of  Calgary,  in the
            Province of Alberta,  and having a legal  description  as set out in
            Schedule B;

      (s)   "Lease" means this lease,  any schedules and riders attached hereto,
            and every properly  executed  instrument  which by its terms amends,
            modifies or supplements this lease;

      (t)   "Leasehold Improvements" has the meaning given in Schedule E;

      (u)   "Major Vertical  Penetrations"  shall mean stairs,  elevator shafts,
            flues,  pipe  shafts,  vertical  ducts,  and  the  like,  and  their
            enclosing  walls,  which serve more than one floor of the  Building,
            but shall not include  stairs,  dumb-waiters,  lifts,  and the like,
            exclusively serving a tenant occupying a portion of the Building;

      (v)   "Occupancy  Costs" means amounts payable by Tenant to Landlord under
            Article 4.2 and defined in Schedule C;

      (w)   "Premises"  means,  collectively,  the Area A  Premises,  the Area B
            Premises and the Area C Premises;

      (x)   "Rent"  means the  aggregate  of all  amounts  payable  by Tenant to
            Landlord under this Lease;

      (y)   "Rentable Area" of the Premises, the Building or any portion thereof
            means such area measured in accordance with the BOMA Standard;

      (z)   "Schedule A" means the plan(s) attached hereto as Schedule A;

      (aa)  "Schedule A-1" means the plan(s) attached hereto as Schedule A-1;

      (bb)  "Schedule B" means the legal  description  of the Lands as described
            in Schedule B attached hereto;

                                       3
<PAGE>

      (cc)  "Schedule C" means the  provisions  relating to Occupancy  Costs and
            other matters attached hereto as Schedule C;

      (dd)  "Schedule  D" means  the rules and  regulations  attached  hereto as
            Schedule D;

      (ee)  "Schedule E" means the tenant's improvements and allowances attached
            hereto as Schedule E;

      (ft)  "Schedule F" means the  Landlord's  Work and Tenant's  Work attached
            hereto as Schedule F;

      (gg)  "Tenant's Work" means the tenant's work described in Schedule F; and

      (hh)  "Term" means the period of time set out in Article 3.1.

                                    ARTICLE 2
                                 GRANT OF LEASE

2.1   GRANT

      In  consideration  of the  rents,  covenants  and  agreements  hereinafter
reserved  and  contained  on the part of the  Tenant  to be paid,  observed  and
performed, Landlord hereby demises and leases the Premises to Tenant, and Tenant
hereby leases and accepts the Premises from Landlord, to have and to hold during
the Term, subject to the terms and conditions of this Lease.

2.2   QUIET ENJOYMENT

      Landlord  covenants  to  provide  the  Tenant  with  quiet  enjoyment  and
possession of the Premises during the Term,  subject to the terms and conditions
of this Lease.

2.3   COVENANTS OF LANDLORD AND TENANT

      Landlord  covenants to observe and perform all of the terms and conditions
to be observed and  performed by Landlord  under this Lease  including the terms
and conditions contained in Schedule E hereto.  Tenant covenants to pay the Rent
when due under this  Lease,  and to  observe  and  perform  all of the terms and
conditions to be observed and performed by Tenant under this Lease including the
terms and conditions contained in Schedule E hereto.

                                    ARTICLE 3
                               TERM AND POSSESSION

3.1   TERM

      Notwithstanding Articles 3.2 and 3.3, the Term of this Lease shall be:

      (a)   for the Area A Premises,  5 years and 3 months beginning on the Area
            A Premises Commencement Date and ending on December 31,2008;

      (b)   for the Area B Premises, 1 year and 6 months beginning on the Area B
            Premises Commencement Date and ending on March 31,2005; and

      (c)   for the Area C Premises,  3 years and 9 months beginning on the Area
            C Premises Commencement Date and ending on December 31,2008;  unless
            terminated earlier as provided in this Lease.

                                       4
<PAGE>

3.2   EARLY OCCUPANCY AND FIXTURING PERIOD

      The  Tenant  shall be  permitted  by the  Landlord  to  occupy  the Area A
Premises prior to the  Commencement  Date but in no event earlier than September
1, 2003 for the purpose of completing its leasehold improvements (the "Fixturing
Period")  if the Tenant has  executed  this  Lease in the form  approved  by the
Landlord,  the  Landlord  is able to  secure  vacant  possession  of the  Area A
Premises,  the Landlord has given its written  consent to such occupancy and the
Tenant has provided evidence of insurance showing  compliance with the insurance
requirements of this Lease. During this Fixturing Period, the Tenant will not be
required to pay Annual Rent or  Occupancy  Costs,  however,  all other terms and
conditions of this Lease shall apply, except where clearly inappropriate.

3.3   DELAYED POSSESSION

      If Landlord is delayed in  delivering  possession of all or any portion of
the  Premises  to Tenant on or before the  Commencement  Date,  then unless such
delay is principally caused by or attributable to Tenant,  its servants,  agents
or  independent  contractors  the  date on  which  the  Premises  are to be made
available to the Tenant and the  obligation of the Tenant to pay Annual Rent and
Occupancy  Costs shall be  postponed  for a period  equal to the duration of the
delay.  This Lease shall not be void or voidable nor shall Landlord be liable to
Tenant for any loss or damage resulting from any delay in delivering  possession
of the Premises to Tenant,  and the deferment of the obligation of the Tenant to
pay Annual  Rent and  Occupancy  Costs  shall be  accepted by the Tenant as full
compensation  for  any  such  delay.  If  any  delay  in the  completion  of the
Landlord's Work is attributable to Tenant,  its servants,  agents or independent
contractors,  the  obligation of Tenant to pay Annual Rent and  Occupancy  Costs
shall not be deferred and the time period for completion of Landlord's Work (but
not the expiry date of the Term) shall be extended for a reasonable period which
shall not in any event be less than a period corresponding to such delay.

3.4   ACCEPTANCE OF PREMISES

      Taking possession of all or any portion of the Premises by Tenant shall be
conclusive  evidence as against Tenant that the Premises or such portion thereof
are in satisfactory condition on the date of taking possession,  subject only to
latent  defects  and to  deficiencies  (if any)  listed in  writing  in a notice
delivered  by Tenant to  Landlord  within  seven (7) days after the later of the
date of taking possession or the Commencement Date.

                                    ARTICLE 4
                            RENT AND OCCUPANCY COSTS

4.1   ANNUAL RENT

      The Tenant  shall pay to the  Landlord as Annual Rent for the Premises the
      following:

      (a)   for the Area A Premises,  the sum of $137,292.00  plus GST per annum
            in respect of the Term  payable in  advance  and  without  notice or
            demand in monthly  installments  of $11,441.00  plus GST each on the
            Area A  Premises  Commencement  Date  and on the  first  day of each
            calendar month thereafter  during the period,  based on a net charge
            of $17.00 plus GST per square foot of the Rentable  Area of the Area
            A Premises;

      (b)   for the Area B Premises,  the sum of $124,387.50  plus GST per annum
            in respect of the Term  payable in  advance  and  without  notice or
            demand in monthly  installments  of $10,365.63  plus GST each on the
            Area B  Premises  Commencement  Date  and on the  first  day of each
            calendar month thereafter  during the period,  based on a net charge
            of $15.50 plus GST per square foot of the Rentable  Area of the Area
            B Premises; and

                                       5
<PAGE>

      (c)   for the Area C Premises, the sum of $62,000.00 plus GST per annum in
            respect of the Term payable in advance and without  notice or demand
            in monthly  installments  of  $5,166.67  plus GST each on the Area C
            Premises  Commencement  Date and on the first  day of each  calendar
            month thereafter during the period,  based on a net charge of $15.50
            plus  GST  per  square  foot  of the  Rentable  Area  of the  Area C
            Premises.

      Notwithstanding  the foregoing and so long as the Tenant is not in default
of its  obligations  under this  Lease,  for the months of April,  May and June,
2005,  the Tenant  will not be liable for Annual Rent for the  Premises  but the
Tenant shall remain liable for Occupancy Costs during this period.

      In the  event  that  the  Tenant  shall  fail to pay  any one  installment
strictly on the due date, the Landlord may, without  prejudice to the Landlord's
rights,  require the Tenant to furnish the Landlord  with a series of post-dated
cheques  covering  the next 12  installments  of Annual  Rent and payable on due
dates of such installments and the Tenant shall forthwith, upon request, deliver
such cheques to the Landlord.

      The Premises shall be measured by a licensed interior  designer,  surveyor
or Architect in accordance with the BOMA Standard within a reasonable time after
occupancy by the Tenant, at the Landlord's discretion, and the licensed interior
designer's,  surveyor's or Architect's  certificate,  as to the Rentable Area of
the  Premises,  shall be  conclusive.  The Landlord  shall deliver a copy of the
licensed  interior  designer's,  surveyor's or  Architect's  certificate  to the
Tenant   forthwith  upon  receipt  of  same  and  the  above  rentals  shall  be
appropriately adjusted, if necessary,  retroactively to the Commencement Date of
the Term of the Lease.  If at any time or times  during the Term of this  Lease,
the Landlord  changes,  modifies or alters the Common Areas or any part of them,
which change,  modification or alteration  results in a reduction or increase to
the Rentable Area of the Premises,  the Landlord shall, upon  remeasurement by a
licensed  interior  designer,  surveyor or the Architect in accordance  with the
BOMA Standard, deliver a copy of the licensed interior designer's, surveyor's or
Architect's  certificate  to the Tenant as to the Rentable Area of the Premises,
which licensed interior designer's,  surveyor's or Architect's certificate shall
be  conclusive   and  the  above  rentals  shall  be   appropriately   adjusted,
retroactively  to the  date  of  completion  of  such  change,  modification  or
alteration to the Common Areas or part thereof.

4.2   OCCUPANCY COSTS

      Tenant shall pay to Landlord,  at the times and in the manner  provided in
Article 4.6,  the  Occupancy  Costs (if any)  determined  under  Schedule C. The
Occupancy Costs are estimated to be $9.74 per rentable square foot per annum for
2003  without  representation  or  warranty  or  liability  on the  part  of the
Landlord.

4.3   OTHER CHARGES

Tenant  shall pay to Landlord,  at the times and in the manner  provided in this
Lease or, if not so provided,  as reasonably  required by Landlord,  all amounts
(other than that payable under Articles 4.1 and 4.2) which are payable by Tenant
to Landlord under this Lease.

4.4   PAYMENT OF RENT-GENERAL

         All  amounts  payable by Tenant to  Landlord  under this Lease shall be
deemed to be Rent and shall be  payable  and  recoverable  as Rent in the manner
herein  provided,  and Landlord shall have all rights against Tenant for default
in any such  payment as in the case of  arrears  of Rent.  Rent shall be paid to

                                       6
<PAGE>

Landlord,  without deduction or set-off;  in legal tender of the jurisdiction in
which the  Building is located,  at the address of Landlord as set forth in this
Lease,  or to such other  person or at such other  address as Landlord  may from
time to time designate in writing. Tenant's obligation to pay Rent shall survive
the expiration or earlier termination of this Lease.

4.5   PARTIAL MONTH'S RENT

      If the  Commencement  Date is a day other than the first day of a calendar
month, the installment of Annual Rent payable on the Commencement  Date shall be
that  proportion  of Annual Rent which the number of days from the  Commencement
Date to the last day of the month in which the Commencement  Date falls bears to
365. If the Term ends on a day other than the last day of a calendar month,  the
installment  of Annual Rent payable on the first day of the last calendar  month
of the Term  shall be that  proportion  of Annual  Rent which the number of days
from the first day of such last calendar month to the last day of the Term bears
to 365.

4.6   PAYMENT - OCCUPANCY COSTS

      (a)   Prior to the  Commencement  Date and to the beginning of each Fiscal
            Year  thereafter,  the  Landlord  shall  compute  and deliver to the
            Tenant a bona fide  estimate in writing of the  Occupancy  Costs for
            the following Fiscal Year or portion thereof, if applicable. Without
            further  notice or demand,  the Tenant shall pay to the Landlord the
            amount of the  Occupancy  Costs in equal  monthly  installments,  in
            advance,  over the Fiscal  Year or portion  thereof,  simultaneously
            with the Tenant's payments on account of Annual Rent.

      (b)   The Landlord  shall  deliver to the Tenant,  as soon as  practicable
            following the end of each Fiscal Year, a written statement,  setting
            out in  reasonable  detail  the amount of  Occupancy  Costs for such
            Fiscal Year. If the total monthly  installments  of Occupancy  Costs
            actually  paid by the Tenant to the Landlord  during the Fiscal Year
            is lower  than the amount of the  Occupancy  Costs  payable  for the
            Fiscal Year under  Schedule C, the Tenant  shall pay to the Landlord
            the difference within 30 days after the date on which such statement
            is received by the Tenant and if the total monthly  installments  of
            Occupancy  Costs actually paid by the Tenant to the Landlord  during
            the Fiscal Year is greater  than the amount of the  Occupancy  Costs
            payable for the Fiscal Year under  Schedule  C, the  Landlord  shall
            credit the  difference  against the Occupancy  Costs for the current
            Fiscal Year and the monthly  installments payable in respect of same
            shall be reduced accordingly.

      (c)   Tenant shall, at its expense,  have the right, at any time within 90
            days after a statement  prepared  and  certified to be correct by an
            officer  of  the  Landlord  of  the  actual  Occupancy  Costs  for a
            particular  Fiscal year, to examine the Landlord's books and records
            relating to the determination of such Occupancy Costs.

      (d)   Neither  party may claim a  re-adjustment  in respect  of  Occupancy
            Costs for a Fiscal  Year if based upon any error of  computation  or
            allocation  except by notice  delivered  to the other party within 6
            months after the date of delivery of the statement.

4.7   INTENT AND ADJUSTMENT FOR VACANCIES

      It is the stated  purpose and intent of the  Landlord and Tenant that this
Lease shall be fully net to the Landlord  and if there are any  vacancies in the
Building during any Fiscal Year and because of such vacancies  actual  Occupancy
Costs are less than they would have been if the Building were fully rented, then

                                       7
<PAGE>

for the  purpose  of  determining  the amount  payable by the Tenant  under this
Article 4 and Schedule C, actual  Occupancy  Costs for the  relevant  accounting
period shall be  increased  by the amount of any saving in  Occupancy  Costs for
such period attributable to such vacancies (as determined by the Landlord acting
reasonably)  and any  reference  to  Occupancy  Costs in this Article 4 shall be
deemed to refer to Occupancy Costs as so increased.

4.8   SECURITY DEPOSIT

      The  Landlord   acknowledges  receipt  from  the  Tenant  of  the  sum  of
$32,100.00,  as partial  consideration for this Lease and such sum shall be held
and applied by the Landlord without liability for interest towards the first and
last month's installments of Annual Rent and Occupancy Costs including G.S.T. In
the  event the  Tenant  becomes  in  default  under the terms of this  Lease the
Landlord  shall be entitled to retain the deposit  paid  hereunder on account of
the  Landlord's  liquidated  damages  and not as a penalty,  provided  that such
retention shall be without prejudice to the Landlord's right to seek further and
other  remedies  as it may be  entitled  to under law.  If the  entire  security
deposit or any portion thereof is applied by the Landlord towards the payment of
overdue Rent prior to the  expiration  of the Term,  then the Tenant  shall,  on
written demand of the Landlord,  forthwith  remit to the Landlord such sum as is
sufficient to restore such security deposit to its original amount. The Landlord
may deliver  the  deposit to any  purchaser  of the  Landlord's  interest in the
Building and the Landlord  shall thereby be discharged of any further  liability
with respect to such  deposit.  The Landlord may  commingle the deposit with its
own funds and shall not hold the deposit as a trustee.

                                    ARTICLE 5
                                 USE OF PREMISES

5.1   USE

      The Premises  shall be used and occupied only as business  offices for the
business  of Tenant as  initially  conducted  in the  Premises or for such other
purposes as Landlord may specifically authorize in writing.

5.2   COMPLIANCE WITH LAWS

      The  Premises  shall be used and  occupied  in a safe,  careful and proper
manner  so  as  not  to  contravene  any  present  or  future   governmental  or
quasi-governmental  laws in force or  regulations  or  orders.  If due solely to
Tenant's use of the Premises,  improvements  are necessary to comply with any of
the foregoing or with the requirements of insurance  carriers,  Tenant shall pay
the entire cost thereof.

5.3   ABANDONMENT

      Tenant  shall not vacate or abandon  the  Premises  at any time during the
Term without Landlord's written consent.

5.4   NUISANCE

      Tenant shall not cause or maintain any nuisance in or about the  Premises,
and shall keep the Premises  free of debris,  rodents,  vermin and anything of a
dangerous,  noxious or  offensive  nature or which  could  create a fire  hazard
(through  undue load on electrical  circuits or  otherwise) or undue  vibration,
heat or noise.

                                       8
<PAGE>

                                    ARTICLE 6
            SERVICES, MAINTENANCE, REPAIR AND ALTERATIONS BY LANDLORD

6.1   OPERATION OF BUILDING

      During the Term  Landlord  shall  operate  and  maintain  the  Building in
accordance with standards from time to time  prevailing for  first-class  office
buildings  in the  area in  which  the  Building  is  located  and,  subject  to
participation  by Tenant by payment of Occupancy  Costs under  Article 4.2 shall
provide the services set out in Articles 6.2 and 6.3.

6.2   SERVICES TO PREMISES

      Landlord shall arrange for the provision of:

      (a)   heat,  ventilation  and air  conditioning  (if  included in building
            standard) as required for the  comfortable  use and occupancy of the
            Premises during normal business hours;

      (b)   janitor services,  including window washing,  as reasonably required
            to keep the Premises in a clean and wholesome condition;

      (c)   electric  power  for  normal  lighting  and  small  business  office
            equipment (but not equipment using amounts of power disproportionate
            to that used by other tenants in the Building);

      (d)   replacement of building standard  fluorescent tubes, light bulbs and
            ballasts  as required  from time to time at Tenant's  sole cost as a
            result of normal usage, to the extent of Landlord's original lamping
            allowance to Tenant; and

      (e)   maintenance, repair, and replacement as set out in Article 6.4.

6.3   BUILDING SERVICES

      Landlord shall provide in the Building:

      (a)   domestic hot and cold (or  temperate)  running  water and  necessary
            supplies  in  washrooms  sufficient  for the normal  use  thereof by
            occupants in the Building;

      (b)   elevator  or  escalator  service  for access to and egress  from the
            Premises;

      (c)   heat,  ventilation,  air  conditioning,  lighting,  electric  power,
            domestic  hot and cold (or  temperate)  running  water,  and janitor
            service in the Common Areas;

      (d)   a general  directory board on which Tenant shall be entitled to have
            its name  shown,  but the  Landlord  shall  have  exclusive  control
            thereof and of the area thereon to be allocated to each tenant; and

      (e)   maintenance, repair, and replacement as set out in Article 6.4.

                                       9
<PAGE>

6.4   MAINTENANCE, REPAIR AND REPLACEMENT

      Landlord  shall  operate,   maintain,  repair  and  replace  the  systems,
facilities and equipment  necessary for the proper operation of the Building and
for provision of Landlord's  services under Articles 6.2 and 6.3 (except such as
may be installed by or be the property of Tenant),  and shall be responsible for
and shall expeditiously maintain and repair the foundations,  structure and roof
of the Building provided that:

      (a)   if all or  part  of  such  systems,  facilities  and  equipment  are
            destroyed,  damaged or  impaired,  Landlord  shall have a reasonable
            time in which to complete the necessary  repair or replacement,  and
            during that time shall be required only to maintain such services as
            are reasonably possible in the circumstances;

      (b)   Landlord may temporarily discontinue such services or any of them at
            such times as may be necessary due to causes  beyond the  reasonable
            control of Landlord;

      (c)   Landlord  shall  use  reasonable   diligence  in  carrying  out  its
            obligations  under this  Article  6.4, but shall not be liable under
            any  circumstances  for any  consequential  damage to any  person or
            property for any failure to do so;

      (d)   no reduction or  discontinuance  of such services under this Article
            6.4 (a) or (b)  shall be  construed  as an  eviction  of  Tenant  or
            (except as specifically  provided in this Lease) release Tenant from
            any obligation of Tenant under this Lease; and

      (e)   nothing  contained  herein shall  derogate  from the  provisions  of
            Article 16.

6.5   ADDITIONAL SERVICES

      (a)   If from time to time  requested  in  writing  by  Tenant  and to the
            extent that it is reasonably able to do so Landlord shall provide in
            the  Premises  services in addition to those set out in Article 6.2,
            provided that Tenant shall within ten days of receipt of any invoice
            for any such  additional  service  pay  Landlord  therefore  at such
            reasonable rates as Landlord may from time to time establish.

      (b)   Tenant shall not without  Landlord's  written consent install in the
            Premises equipment  (including  telephone equipment) which generates
            sufficient  heat to affect the temperature  otherwise  maintained in
            the Premises by the air  conditioning  system as normally  operated.
            Landlord  may  install   supplementary   air   conditioning   units,
            facilities  or  services  in  the   Premises,   or  modify  its  air
            conditioning  system,  as may in  Landlord's  reasonable  opinion be
            required to maintain proper  temperature levels and Tenant shall pay
            Landlord  within  ten days of receipt  of any  invoice  for the cost
            thereof, including installation, operation and maintenance expense.

      (c)   If Landlord  shall from time to time  reasonably  determine that the
            use of  electricity  or any other utility or service in the Premises
            is  disproportionate  to the use thereof by other tenants,  Landlord
            may separately  charge Tenant for the excess costs  attributable  to
            such  disproportionate  use. At  Landlord's  request,  Tenant  shall
            install  and  maintain  at Tenant's  expense,  metering  devices for
            checking the use of any such utility or service in the Premises. The
            Tenant  shall not be  permitted  to engage any person to provide any
            utility service to the Premises.

                                       10
<PAGE>

6.6   ALTERATIONS BY LANDLORD

      Landlord may from time to time:

      (a)   make repairs,  replacements,  changes or additions to the structure,
            systems, facilities and equipment in the Premises where necessary to
            serve the Premises or other parts of the Building;

      (b)   make  changes in or  additions to any part of the Building not in or
            forming part of the Premises; and

      (c)   change  or alter  the  location  of  Common  Areas of the  Building,
            provided  that in doing so Landlord  shall not disturb or  interfere
            with  Tenant's use of the Premises and operation of its business any
            more than is  reasonably  necessary in the  circumstances  and shall
            repair any damage to the Premises caused thereby.

6.7   ACCESS BY LANDLORD

      Tenant shall permit Landlord to enter the Premises outside normal business
hours,  and during normal  business  hours in case of an emergency or where such
will not unreasonably disturb or interfere with Tenant's use of the Premises and
operation of its business, to examine, inspect, and show the Premises to persons
wishing  to lease  them,  to provide  services  or make  repairs,  replacements,
changes or  alterations  as set out in this Lease,  and to take such  steps,  as
Landlord may deem necessary for the safety,  improvement or  preservation of the
Premises or the Building.  Landlord shall whenever possible consult with or give
reasonable  notice  to  Tenant  prior to such  entry,  but no such  entry  shall
constitute an eviction or entitle Tenant to any abatement of Rent.

6.8   RELOCATION

      The  Landlord  shall  have the  right,  at any time  during  the Term,  to
relocate the Tenant anywhere within the Building, upon giving the Tenant 30 days
written  notice.  The relocated  premises  shall be of a similar type,  size and
quality to the existing  Premises.  The Tenant shall provide the Landlord with a
written estimate of the Tenant's  reasonable  moving expenses,  30 days prior to
the date of relocation. The Landlord shall have the option of:

      (a)   reimbursing the Tenant for reasonable moving expenses within 30 days
            following the presentation of invoices by the Tenant; or

      (b)   making suitable arrangements for moving the Tenant at the Landlord's
            expense.

      The Landlord shall, by written notice to the Tenant,  elect one of the two
options 15 days prior to the date of relocation.

      The Landlord shall not be liable for:

      (a)   any damage to the  Tenant's  property  occurring  as a result of the
            relocation if the Tenant affects the move; and

      (b)   any loss suffered by the Tenant as a result of business interruption
            of the Tenant occurring as a result of the relocation.

                                       11
<PAGE>

      The  relocation  shall be effective  on the date stated in the  Landlord's
notice and the Tenant shall  complete its move in one (1) weekend.  In the event
the Landlord relocates the Tenant to such new space, this Lease and each and all
of its terms, covenants and conditions shall remain in full force and effect and
be deemed applicable to such new space save and except:

      (a)   the right of first refusal or right of first offer, if any, and

      (b)   the location and size of the Premises  which shall be in  accordance
            with the appropriate floor plan.

      Upon the relocation  taking place, the Annual Rent per square foot for the
new space shall be the same Annual Rent per square foot as for the  Premises and
this Lease will be amended accordingly. If the Tenant refuses, fails or neglects
to  relocate  to such new space on or before the date  stated in the  Landlord's
notice then the Tenant shall be responsible  and liable for all costs,  expenses
and  damages  suffered  by the  Landlord  as a result of the  Tenant's  refusal,
failure,  or neglect of such relocation and in addition to the Landlord's  right
of  recovery  against  the Tenant for such  costs,  expenses  and  damages,  the
Landlord shall have the right, at its sole option and  discretion,  to terminate
this Lease upon 10 days written notice to the Tenant,  such termination right to
be  exercised  by the  Landlord  any time after the date set by the Landlord for
such relocation as aforesaid

      The  Landlord's  exercise  of its rights  under this  Article 6.8 does not
constitute a re-entry or breach of the Landlord's covenant for quiet enjoyment.

6.9   ENERGY CONSERVATION AND SECURITY POLICIES

      Landlord  shall be deemed to have  observed  and  performed  those  things
required  to be  observed  and  performed  pursuant  to the terms of this Lease,
including those relating to the provision of utilities and services, if in doing
so it acts in accordance  with a directive,  policy or request of a governmental
or  quasi-governmental  authority  serving  the public  interest in the field of
energy conservation or security.

6.10  LANDLORD'S WORK

      It is understood and agreed that the Tenant has entered into this Lease on
the express  understanding  that the Landlord's  Work, as defined in Schedules E
and F in respect of the Premises,  is limited to the scope delineated as such in
Schedules  E and  F.  It  is  further  understood  and  agreed  that  all  other
improvements to the Premises  constitute  Tenant's Work as defined in Schedule E
and shall be performed at the sole expense of the Tenant in accordance  with the
terms of this Lease.

                                    ARTICLE 7
          MAINTENANCE, REPAIR, ALTERATIONS AND IMPROVEMENTS BY TENANTS

7.1   CONDITION OF PREMISES

      Except to the extent that Landlord is specifically  responsible  therefore
under this Lease,  Tenant  shall  maintain  the  Premises  and all  improvements
therein in good order and condition, including:

      (a)   repainting  and  redecorating  the Premises and cleaning  drapes and
            carpets at reasonable intervals as needed;

      (b)   making repairs,  replacements  and alterations as needed,  including
            those necessary to comply with the  requirements of any governmental
            or quasi-governmental authority having jurisdiction, reasonable wear
            and tear and damage by fire,  lightning  and tempest only  excepted;
            and

      (c)   leaving the  Premises in a reasonably  tidy  condition at the end of
            each business day.

                                       12
<PAGE>

7.2   FAILURE TO MAINTAIN PREMISES

      If Tenant fails to perform any  obligation  under Article 7.1, then on not
less than ten days'  notice  to  Tenant,  Landlord  may enter the  Premises  and
perform such  obligation  without  liability to Tenant for any loss or damage to
Tenant thereby incurred and Tenant shall pay Landlord for the cost thereof, plus
15% of such cost for  overhead  and  supervision,  within ten days of receipt of
Landlord's invoice therefore.

7.3   ALTERATIONS BY TENANT

      Tenant may from time to time at its own expense  make  changes,  additions
and  improvements  in the  Premises  to better  adapt the same to its  business,
provided that any such change, addition or improvement shall:

      (a)   comply  with the  requirements  of the  Landlord's  insurer  and any
            governmental or quasi-governmental authority having jurisdiction;

      (b)   comply with the requirements set forth in Schedule E;

      (c)   be made only with the prior  written  consent of the Landlord  after
            detailed plans and  specifications  therefore have been submitted to
            the Landlord;

      (d)   equal or exceed the then current standard for the Building;

      (e)   be carried out only by persons  selected  by Tenant and  approved in
            writing by Landlord.  Such persons shall be  compatible  with others
            employed by or through the Landlord directly or indirectly including
            Landlord's other tenants,  contractors and  subcontractors and their
            trade union affiliations; and

      (f)   if required by Landlord,  deliver to Landlord before commencement of
            the work  performance and payment bonds as well as proof of workers'
            compensation  and public  liability  and property  damage  insurance
            coverage,  with Landlord named as an additional insured, in amounts,
            with  companies,  and in form  reasonably  satisfactory to Landlord,
            which shall remain in effect  during the entire  period in which the
            work will be carried out.

      Any increase in property taxes or fire or casualty  insurance premiums for
the Building attributable to such change, addition or improvement shall be borne
by the Tenant.  In  addition,  Tenant shall pay Landlord 15% of the cost of such
work (or, if such cost is not ascertainable, the fair market value of such work)
as a fee for the Landlord's supervision.

      In the event any of the following work is required by Tenant,  it shall be
carried out by the Landlord  under  written  contract with the Tenant and at the
Tenant's  sole  expense  under  contract to Landlord  only and by  agreement  in
writing:

      (a)   all  approved  work  relating  to  heating,  cooling,   ventilation,
            exhaust, control, electrical distribution and life safety systems;

      (b)   patching of Building standard fireproofing;

                                       13
<PAGE>

      (c)   any  drilling,  cutting,  coring  and  patching  for  conduit,  pipe
            sleeves,  chases, duct equipment,  or openings in the floors, walls,
            columns or roofs of the Building which is approved by Landlord; and

      (d)   installation of approved modifications to the sprinkler system.

7.4   TRADE FIXTURES AND PERSONAL PROPERTY

      Tenant may install in the Premises  its usual trade  fixtures and personal
property in a proper manner,  provided that no such installation shall interfere
with or damage the  mechanical  or  electrical  systems or the  structure of the
Building.

7.5   BUILDER'S LIENS

      Tenant shall pay before  delinquency  all costs for work done or caused to
be done by Tenant in the Premises  which could result in any lien or encumbrance
being placed on Landlord's interest in the Land or Building or any part thereof,
shall keep the title to the Land or  Building  and every part  thereof  free and
clear of any lien or encumbrance  in respect of such work,  and shall  indemnify
and hold harmless  Landlord against any claim,  loss, cost,  demand and legal or
other expense,  whether in respect of any lien or otherwise,  arising out of the
supply of material,  services or labour for such work.  Tenant shall immediately
notify Landlord of any such lien,  claim of lien or other action of which it has
or  reasonably  should have had  knowledge of and which affects the title to the
Land or  Building  or any part  thereof,  and shall cause the same to be removed
within  five  days  (or such  additional  time as  Landlord  may  consent  to in
writing),  failing  which  Landlord  may take  such  action  as  Landlord  deems
necessary  to remove the same and the entire cost thereof  shall be  immediately
due and payable by Tenant to Landlord.

7.6   SIGNS

      Tenant  has the  right  to have  its  name  displayed  on the  main  lobby
directory  board for the Building,  on the floor lobby  directory  board on each
floor on which the  Premises  are located and on the main door to the  Premises,
all such signs to be at Tenant's  expense and to be under the exclusive  control
of Landlord and to conform to the uniform  pattern of  identification  signs for
tenants of the Building prescribed by Landlord.

      If the Premises constitute one or more full floors of the Building, Tenant
has the right to have a sign displaying the name of Tenant in the elevator lobby
of each such floor,  at Tenant's  expense,  provided that the design of the sign
has been approved by the Landlord

7.7   NORMAL BUSINESS HOURS

      Except as otherwise  specifically  provided in this Lease, normal business
hours  for the  Building  shall be from 7:00 a.m.  to 6:00 p.m.  Monday  through
Friday excluding days which are legal or statutory  holidays in the jurisdiction
in which the Building is located.

                                       14
<PAGE>

                                    ARTICLE 8
                                      TAXES

8.1   LANDLORD'S TAXES

      Landlord shall pay before delinquency  (subject to participation by Tenant
by payment of Occupancy Costs under Article 4.2) every real estate tax, property
tax,  assessment,  license fee and other charge (except for Tenant's taxes under
Articles  8.2 and 8.3),  which is  imposed,  levied,  assessed or charged by any
governmental or  quasi-governmental  authority having  jurisdiction and which is
payable in respect of the Term upon or on account of the Land or Building.

8.2   TENANT'S TAXES

      Tenant  shall pay before  delinquency  every tax,  assessment,  license or
privilege fee,  excise,  gross receipts or sales tax and other charge,  however,
described, which is imposed, levied, assessed or charged by any govern-mental or
quasi-governmental authority having jurisdiction and which is payable in respect
of the Term upon or on account of:

      (a)   operations  at,  occupancy  of,  or  conduct  of  business  from the
            Premises by or with the percussion of Tenant;

      (b)   fixtures or personal property in the Premises which do not belong to
            the Landlord; and

      (c)   the Rent paid or payable or reserved  by Tenant to Landlord  for the
            Premises or for the use and occupancy of all or any part thereof,

      provided that if Landlord so elects by notice to Tenant,  Tenant shall add
any amounts payable under this Article 8.2 to the monthly installments of Annual
Rent  payable  under  Article 4.1 and  Landlord  shall remit such amounts to the
appropriate authorities. 8.3 GOODS AND SERVICES TAXES

      The  Tenant  specifically  acknowledges  and  agrees  that  as part of its
Occupancy Costs payable pursuant to Article 4.2 hereof,  the Tenant shall pay to
the Landlord any multi-stage  sales,  sales,  use,  consumption,  value-added or
other similar taxes imposed by the Government of Canada, or by any provincial or
local  government  upon the  Landlord or the Tenant or in respect of this Lease,
the  payments  made by the  Tenant  (whether  Annual  Rent,  Occupancy  Costs or
otherwise)  for the  goods  and  services  provided  by the  Landlord  hereunder
including,  without  limitation,  the rental of the  Premises or  administrative
services provided to the Tenant or to tenants generally. In addition, the Tenant
shall also reimburse and indemnify the Landlord for the Tenant's  Pro-rata Share
of amounts paid by the Landlord as or on account of such taxes in respect of any
goods or  services  acquired  by the  Landlord  for the  purpose of this  Lease.
Amounts payable by the Tenant under this Article from time to time shall be paid
when   Occupancy   Costs  under  this  Lease  are  payable,   together  with  an
administration  fee in such amount as shall be standard from time to time in the
office building industry, as determined by the Landlord, acting reasonably,  and
which is permitted by applicable  legislation to cover the  Landlord's  costs in
allocating and administering the collection of such tax.

8.4   RIGHT TO CONTEST

      Landlord and Tenant shall each have the right to contest in good faith the
validity or amount of any tax,  assessment,  license  fee,  excise fee and other
charge which it is  responsible  to pay under this Article 8,  provided  that no
contest by Tenant may involve the possibility of forfeiture, sale or disturbance
of Landlord's  interest in the Premises and that upon the final determination of
any contest by Tenant, Tenant shall immediately pay and satisfy the amount found
to be due, together with any costs, penalties and interest.

                                       15
<PAGE>

                                    ARTICLE 9
                                    INSURANCE

9.1   LANDLORD'S INSURANCE

      During  the  Term,  Landlord  shall  take  out and  maintain  (subject  to
participation  by Tenant by  payment  of  Occupancy  Costs  under  Article  4.2)
liability insurance,  fire insurance with extended coverage, boiler and pressure
vessel insurance, and such other insurance on the Building as the Landlord shall
deem  necessary  with coverage and in amounts not less than those which are from
time to time  acceptable to a prudent owner in the area in which the Building is
located.

9.2   TENANT'S INSURANCE

      During the Term, Tenant shall take out and maintain at its own expense:

      (a)   fire insurance with extended  coverage and water damage insurance in
            amounts  sufficient  to fully cover  Tenant's  improvements  and all
            property  in the  Premises  which is not owned by Landlord on a full
            replacement cost basis;

      (b)   comprehensive general public liability insurance, with Landlord, its
            manager  and  mortgagee,  if any,  named as an  additional  insured,
            against claims for death,  personal injury and property damage in or
            about the  Premises,  in amounts which are from time to time carried
            by a  prudent  tenant in the  community  in which  the  Building  is
            located,  but in any  event not less  than  $2,000,000  for death or
            injury to one  person,  $3,000,000  for death or injury to more than
            one person,  and $500,000 for  property  damage,  in respect of each
            occurrence;

      (c)   Tenant's legal liability  insurance for the actual cash value of the
            Premises from any damage howsoever caused; and

      (d)   any other form of insurance that the Tenant, or the Landlord, acting
            reasonably,  requires in amounts  and for  insurance  risks  against
            which a prudent tenant would insure.

      Policies for fire and liability  insurance  shall be in a form and with an
insurer  reasonably  acceptable to Landlord,  shall require at least thirty days
written notice to Landlord of  termination or material  alteration of the policy
during  the Term and  shall  either  waive  any  right  of  subrogation  against
Landlord,  its manager and  mortgagee,  or cause the  Landlord,  its manager and
mortgagee to be named as an insured in such policies of insurance.  If requested
by  Landlord,  Tenant  shall from time to time  promptly  deliver  to  Landlord,
certified copies or other evidence of such policies,  and evidence  satisfactory
to Landlord  that all  premiums  thereon  have been paid and the policies are in
full force and effect.

9.3   PLACEMENT OF TENANT'S INSURANCE BY LANDLORD

      If the  Tenant  fails  to take  out,  renew  or keep in  force  any of the
policies  of  insurance  required to be taken out and  maintained  by the Tenant
under  Article 9.2, the Landlord may do so as agent of the Tenant and the Tenant
shall  reimburse the Landlord any amount so paid by the Landlord as agent of the
Tenant promptly upon demand by the Landlord.

                                       16
<PAGE>

                                   ARTICLE 10
                          INJURY TO PERSON OR PROPERTY

10.1  INDEMNITY BY TENANT

      Tenant shall  indemnify and hold harmless  Landlord from and against every
demand, claim, cause of action,  judgment and expense, and all losses and damage
arising from:

      (a)   any injury or damage to the person or property of Tenant,  any other
            tenant in the  Building  or to any other  person  rightfully  in the
            Building,  where the  injury or  damage is caused by  negligence  or
            misconduct of Tenant, its agents,  servants or employees,  or of any
            other person  entering  upon the Premises  under  express or implied
            invitation  of Tenant,  or  results  from the  violation  of laws or
            ordinances,  governmental orders of any kind or of the provisions of
            this Lease by any of the foregoing;

      (b)   any loss or damage, however caused, to books, records, files, money,
            securities,  negotiable  instruments  or  papers  in  or  about  the
            Premises;

      (c)   any loss or damage resulting from  interference  with or obstruction
            of deliveries to or from the Premises; and

      (d)   any injury or damage not  specified  above to the person or property
            of Tenant,  its agents,  servants or employees,  or any other person
            entering upon the Premises  under  express or implied  invitation of
            Tenant,  where the  injury or damage is caused by any  reason  other
            than the negligence or misconduct of Landlord, its agents, servants,
            or employees.

10.2  SUBROGATION

      The  provisions  of this Article 10 are subject to the waiver of any right
of subrogation against Landlord in Tenant's insurance.

                                   ARTICLE 11
                            ASSIGNMENT AND SUBLETTING

11.1  ASSIGNMENT OR SUBLETTING

      The Tenant will not, during the Term, assign, transfer,  sublet, part with
possession  or set over or  otherwise by any act or deed procure the Premises or
any  part of them to be  assigned,  transferred,  set  over or  sublet  unto any
persons, firm or corporation whomsoever except with the consent of the Landlord,
as set out in Article 11.2. In the event Tenant  desires to assign this Lease or
sublet the Premises or any portion thereof to a named third party,  Tenant shall
first provide Landlord with any information it may reasonably require (including
a true copy of the agreement to assign or sublet, as the case may be) and, if it
so elects,  Landlord  shall have the right to terminate this Lease or sublet the
Premises in the manner hereinafter mentioned.

      Tenant shall give written  notice of such agreement to sublease or assign,
as the case may be, to  Landlord  by sending a true copy  thereof  and  Landlord
shall thereupon have the following rights:

                                       17
<PAGE>

      (a)   to sublease  from Tenant the Rentable  Area to be sublet or assigned
            under the said agreement on the same terms and conditions as set out
            in such  agreement  (except in  respect  of rent which  shall be the
            lesser of the Rent paid  therefore by Tenant under this Lease or the
            rent specified in such agreement) by giving written notice to Tenant
            within  fourteen  (14)  days of  receipt  of a true copy of the said
            agreement; or

      (b)   to terminate this Lease in respect of the Rentable Area to be sublet
            or assigned under the said agreement as set out in Article 11.2;

it being understood and agreed that if a portion of the Premises is being sublet
or assigned,  this Lease  shall,  at the option of the  Landlord,  be amended to
reflect the reduction in Rentable Area of the Premises.

      Tenant  shall pay the  Landlord's  costs on  account  of any  request  for
approval and, if applicable, the preparation of the implementing  documentation,
in  such  form  as  may  be  acceptable  to  the  Landlord,   together  with  an
administration  cost of not less than  $400.00 and legal  costs  incurred by the
Landlord.

      The Tenant  shall not assign or sublet all or part of the  Premises to any
other tenant in the Building without prior written consent of the Landlord which
consent may be arbitrarily withheld, in Landlord's sole discretion.

11.2  LANDLORD'S RIGHTS

      Landlord's  termination  rights set out in Article 11.1 (b) above shall be
exercised  by  giving  written  notice to Tenant  within  fourteen  (14) days of
receipt  by  Landlord  of the true  copy of the said  agreement  and such  other
information as the Landlord may reasonably  require,  and the  termination  date
shall be such date as is stipulated in Landlord's notice which shall in no event
be less than 60 days nor more than 90 days  following  the giving of such notice
by Landlord. If Landlord exercises its rights set out in Article 11.1 (a) above,
Landlord  shall have an additional  right to terminate  this Lease in respect of
the  Rentable  Area sublet by Tenant to Landlord  and such  additional  right of
termination  shall be exercised by giving written notice to Tenant not less than
7 days  prior  to the  end of the  term  of the  sublease  to  Landlord  and the
termination  date  shall  be the day  following  the end of the term of the said
sublease.  If this Lease is terminated by Landlord with respect to a part of the
Premises,   then  Rent  payable   under  this  Lease  shall   thereafter   abate
proportionately  and  all  other  appropriate  recalculations  shall  be made to
recognize  that the area of the premises to be sublet  under the said  agreement
has abated.

      In the event  that the Tenant  desires to assign  this Lease or sublet the
Premises or any portion  thereof,  and Landlord does not exercise its rights set
out in Article  ll.l(a) or (b) above,  Tenant  shall,  subject to the consent of
Landlord being first obtained, which consent may not be arbitrarily withheld, be
free to assign this Lease to the named third party in the said  agreement  or to
sublet the  Rentable  Area to be sublet  under the said  agreement  to the named
third party on the terms and conditions contained in the said agreement.

      If Tenant,  with the consent of  Landlord,  sublets  Rentable  Area to the
named third party pursuant to the said agreement and the said agreement provides
for a rental  payable  greater than that payable  under this Lease in respect of
the Rentable Area so sublet, the excess, when received by Tenant,  shall be paid
by Tenant to Landlord as additional rent under this Lease.  All of the foregoing
rights of Landlord shall be  alternative  to, but not in  substitution  for, any
other rights which  Landlord may have to either  consent or withhold its consent
to any such assigning or subletting.

                                       18
<PAGE>

      In the event any  sublease  is made  pursuant to this  Article 11,  Tenant
shall  bear  the  cost of all  improvements  (including,  without  limiting  the
generality of the foregoing,  all demising walls) necessary to separate the area
to be sublet from the remainder of the Premises.

11.3  TENANT'S OBLIGATIONS CONTINUE

      No  assignment or  disposition  by Tenant of this Lease or of any interest
under this Lease,  shall relieve  Tenant from the  performance of its covenants,
obligations or agreements under this Lease. Such assignment or other disposition
shall render null and void at the time of such  assignment or other  disposition
any  options  to renew this  Lease,  options  or rights to  additional  area and
options or rights to car parking  areas  unless  Landlord  shall have  otherwise
agreed in writing.  Upon the Landlord  granting its consent to an  assignment or
subletting  by the Tenant,  the Tenant and its  assignee or  subtenant  shall be
required to enter into the  Landlord's  standard  form consent  agreement at the
Tenant's cost.

11.4  SUBSEQUENT ASSIGNMENTS

      Landlord's  consent to an  assignment,  transfer or subletting  (or use or
occupation  of the  Premises  by any other  person)  shall not be deemed to be a
consent to any subsequent assignment, transfer, subletting, use or occupation.

11.5  CHANGE IN CORPORATE CONTROL

      If the  sale,  assignment,  transfer  or other  disposition  of any of the
issued and  outstanding  capital  stock of the Tenant  (or of any  successor  or
assignee of the Tenant  which is a  corporation)  shall  result in changing  the
control of the Tenant such sale, assignment, transfer or other disposition shall
be deemed  an  assignment  of this  Lease  and  shall be  subject  to all of the
provisions of this Lease with respect to  assignments  by the Tenant,  provided,
however,  that the Landlord's  consent shall not be required to an assignment or
transfer of the issued and  outstanding  capital  stock of the Tenant:

      (a)   to a corporation controlled by or subject to the same control as the
            assignor or transferor;

      (b)   to a member or members of the family of the assignor or  transferor;
            or

      (c)   in the case of devolution through death.

For the purpose of this Article, "control" of any corporation shall be deemed to
be vested in the person or persons  owning  more than 50% per cent of the voting
power for the  election  of the board of  directors  of such  corporation  and a
"member or members" of the family of any assignor or  transferor  shall  include
his spouse, parents, brothers or sisters and issue.

                                       19
<PAGE>

                                   ARTICLE 12
                                    SURRENDER

12.1  POSSESSION

      At the  expiration  or  earlier  termination  of the  Term,  Tenant  shall
peaceably  surrender and yield up to Landlord the Premises and all  improvements
made, constructed,  erected or installed in the Premises in good and substantial
repair and condition in accordance with its covenants to maintain and repair the
Premises.  Notwithstanding  anything  contained in this Article  12.1,  upon the
expiration of the Term and at Tenant's cost, Tenant shall remove all or any part
of the  improvements  as may be  required  by  Landlord  and shall make good any
damage caused by reason of the installation and removal of such improvements. On
the  expiration  of the Term all  improvements  made,  constructed,  erected  or
installed in the  Premises  and not required by Landlord to be removed  shall be
deemed to have become the property of Landlord.

12.2  MERGER

      The  voluntary  or  other   surrender  of  the  Lease  by  Tenant  or  the
cancellation  of the Lease by mutual  agreement of Tenant and Landlord shall not
work a merger,  and shall at Landlord's  option  terminate all or any subleases.
Landlord's option hereunder shall be exercised by notice to Tenant and all known
subleases or subtenants in the Premises or any part thereof.

12.3  PAYMENTS AFTER TERMINATION

      No payments of money by Tenant to Landlord  after the  expiration or other
termination  of the Term or after giving of any notice  (other than a demand for
payment of money) by Landlord to Tenant, shall reinstate, continue or extend the
Term or make  ineffective  any notice  given to Tenant  prior to the payments of
such money.  After the service of notice or the commencement of a suit, or after
final  judgment  granting  Landlord  possession  of the  Premises,  Landlord may
receive  and  collect  any sums of Rent due under this  Lease,  and the  payment
thereof  shall not make  ineffective  any  notice,  or in any manner  affect any
pending suits or any judgment therefore obtained.

                                   ARTICLE 13
                                  HOLDING OVER

13.1  MONTH-TO-MONTH TENANCY

      If with  Landlord's  written  consent  Tenant remains in possession of the
Premises after the expiration or other  termination of the Term, Tenant shall be
deemed to be  occupying  the Premises on a  month-to-month  tenancy  only,  at a
monthly  rental equal to the Rent as determined in accordance  with Article 4 or
such other rental as is stated in such written consent,  and such month-to-month
tenancy may be  terminated by Landlord or Tenant on the last day of any calendar
month by  delivery  of at least 30 days  advance  notice of  termination  to the
other.

13.2  TENANCY AT SUFFERANCE

      If, without  Landlord's  written consent,  Tenant remains in possession of
the Premises after the expiration or other termination of the Term, Tenant shall
be deemed to be occupying the Premises  upon a tenancy at sufferance  only, at a
monthly rental equal to two times the Rent determined in accordance with Article
4. Such  tenancy at  sufferance  may be  terminated  by  Landlord at any time by
notice of  termination  to Tenant and by Tenant on the last day of any  calendar
month by at least 30 days advance notice of termination to Landlord.

                                       20
<PAGE>

13.3  GENERAL

      Any  month-to-month  tenancy or tenancy at sufferance  hereunder  shall be
subject  to all other  terms and  conditions  of the Lease  except  any right of
renewal and nothing  contained in this Article 13 shall be construed to limit or
impair any of  Landlord's  rights of re-entry or eviction or constitute a waiver
thereof.

                                   ARTICLE 14
                              RULES AND REGULATIONS

14.1  PURPOSE

      The rules and  regulations  set forth in  Schedule D have been  adopted by
Landlord  for the  safety,  benefit  and  convenience  of all  tenants and other
persons in the Building.

14.2  OBSERVANCE

      Tenant shall,  at all times,  comply with,  and shall cause its employees,
agents,  licensees  and  invitees  to comply  with,  such rules and  regulations
attached as Schedule D hereto and such  further and other  reasonable  rules and
regulations  and amendments  and changes  thereto as may be made by the Landlord
and notified to the Tenant by mailing a copy thereof to the Tenant or by posting
same in a conspicuous place in the Building.  All such rules and regulations now
or hereafter in force shall be read as forming part of this Lease.

14.3  NON-COMPLIANCE

      Landlord  shall use its best efforts to secure  compliance  by all tenants
and other persons with such rules and  regulations  from time to time In effect,
but shall not be  responsible to Tenant for failure of any person to comply with
such rules and regulations.

14.4  LOADING AND UNLOADING

      The delivery and shipping of merchandise,  supplies,  fixtures,  and other
materials or goods of whatsoever nature to or from the Premises and all loading,
unloading, and handling thereof shall be done only at such times, in such areas,
by such means, and through such elevators, entrances, malls and corridors as are
designated by Landlord.

                                   ARTICLE 15
                                  EXPROPRIATION

15.1  TAKING OF PREMISES

      If during  the Term all of the  Premises  shall be taken for any public or
quasi-public  use under any statute or by right of  expropriation,  or purchases
under threat of such  taking,  this Lease shall  automatically  terminate on the
date on which the  expropriating  authority  takes  possession  of the  Premises
(thereinafter called the "date of such taking").

                                       21
<PAGE>

15.2  PARTIAL TAKING OF BUILDING

      If during the Term only part of the  Building is taken or purchased as set
out in Article 15.1, then:

      (a)   if in the reasonable opinion of Landlord  substantial  alteration or
            reconstruction of the Building is necessary or desirable as a result
            thereof,  whether  or not  the  Premises  are  or  may be  affected,
            Landlord  shall  have the right to  terminate  this  Lease by giving
            Tenant at least 30 days written notice of such termination, and

      (b)   if more than  one-third of the number of square feet in the Premises
            is included in such taking or  purchase,  Landlord  and Tenant shall
            each have the right to  terminate  this Lease by giving the other at
            least 30 days written notice thereof.

If either party exercises its right of termination  hereunder,  this Lease shall
terminate  on  the  date  stated  in  the  notice,  provided  however,  that  no
termination  pursuant to notice hereunder may occur later than 60 days after the
date of such taking.

15.3  SURRENDER

      On any such date of termination  under Articles 15.1 or 15.2, Tenant shall
immediately  surrender to Landlord the Premises and all interest  therein  under
this Lease. Landlord may re-enter and take possession of the Premises and remove
Tenant  there  from,  and the Rent  shall  abate on such date in  respect of the
portion taken.  After such termination,  and on notice from Landlord stating the
Rent then owing, Tenant shall forthwith pay Landlord such Rent.

15.4  PARTIAL TAKING OF PREMISES

      If any  portion of the  Premises  (but less than the whole  thereof) is so
taken, and no rights of termination  herein conferred are timely exercised,  the
Term of the Lease shall  expire with respect to the portion so taken on the date
of such taking.  In such event the Rent payable  hereunder  with respect to such
portion so taken shall abate on such date, and the Rent thereafter  payable with
respect to the  remainder not so taken shall be adjusted pro rata by Landlord in
order to account for the resulting reduction in the number of square feet in the
Premises.

15.5  AWARDS

      Upon any such taking or  purchase,  Landlord  shall be entitled to receive
and  retain  the  entire  award or  consideration  for the  affected  lands  and
improvements,  and Tenant shall not have nor advance any claim against  Landlord
for the value of its property or its leasehold  estate or the unexpired  Term of
the Lease,  or for costs of  removal or  relocation,  or  business  interruption
expense or any other  damages  arising out of such taking or  purchase.  Nothing
herein shall give  Landlord any interest in or preclude  Tenant from seeking and
recovering  on its own  account  from  the  condemning  authority  any  award or
compensation  attributable  to the taking or purchase of Tenant's  improvements,
chattels or trade fixtures, or the removal or relocation of its business. If any
such award made or compensation  paid to either party  specifically  includes an
award or amount for the other, the party first receiving the same shall promptly
account therefore to the other.

                                       22
<PAGE>

                                   ARTICLE 16
                        DAMAGE BY FIRE OR OTHER CASUALTY

16.1  LIMITED DAMAGE TO PREMISES

      If all or part of the Premises are  rendered  untenantable  by damage from
fire or other  casualty  which,  in the  reasonable  opinion  of the  Landlord's
Architect,  can be  substantially  repaired under applicable laws and government
regulations  within 180 days from the date of such  casualty  (employing  normal
construction  methods without  overtime or other premium),  the Landlord and the
Tenant,  as the case may be,  according  to the  nature of the  damage and their
respective  obligations  to repair,  shall repair the damage with all reasonable
diligence.

16.2  MAJOR DAMAGE TO PREMISES

      If all or part of Premises are rendered  untenantable  by damage from fire
or other casualty which, in the reasonable opinion of an architect acceptable to
Landlord and Tenant, cannot be substantially  repaired under applicable laws and
governmental  regulations  within  180  days  from  the  date of  such  casualty
(employing normal construction methods without overtime or other premium),  then
either  Landlord or Tenant may elect to  terminate  this Lease as of the date of
such  casualty by written  notice  delivered  to the other not more than 10 days
after  receipt of such  Architect's  opinion,  failing which the Landlord or the
Tenant,  as the case may be,  according  to the  nature of the  damage and their
respective  obligations  under this  Lease,  shall  repair  such damage with all
reasonable diligence.

16.3  ABATEMENT

      If Landlord is  required to repair  damage to all or part of the  Premises
under  Articles  16.1 or 16.2 the Rent  payable  by  Tenant  hereunder  shall be
proportionately  reduced to the extent that the  Premises  are thereby  rendered
unusable by Tenant in its business,  from the date of such casualty until 5 days
after completion by Landlord of the repairs to the Premises (or the part thereof
rendered  untenantable)  or until  Tenant  again uses the  Premises (or the part
thereof rendered untenantable) in its business, whichever first occurs.

16.4  MAJOR DAMAGE TO BUILDING

      If all or a  substantial  part  (whether or not including the Premises) of
the Building is rendered  untenantable  by damage from fire or other casualty to
such a material  extent that in the reasonable  opinion of Landlord the Building
must be totally or partially  demolished or  reconstructed  whether or not to be
reconstructed in whole or in part, Landlord may elect to terminate this Lease as
of the date of such  casualty  (or on the date of  notice  if the  Premises  are
unaffected by such casualty) by written notice delivered to Tenant not more than
60 days after the date of such  casualty,  in which event:

      (a)   the  Tenant  shall  deliver up  possession  of the  Premises  to the
            Landlord within 30 days after delivery of the notice of termination;
            and

      (b)   Rent shall be apportioned and paid to the date upon which possession
            has been delivered up,

but otherwise,  the Landlord or the Tenant, as the case may be, according to the
nature of the damage and their respective  obligations  under this Lease,  shall
repair such damage with all reasonable diligence.

                                       23
<PAGE>

16.5  LIMITATION ON LANDLORD'S LIABILITY

      Except as  specifically  provided in this  Article  16,  there shall be no
reduction  of Rent and  Landlord  shall have no liability to Tenant by reason of
any injury to or interference  with Tenant's  business or property  arising from
fire or other  casualty,  howsoever  caused,  or from the making of any  repairs
resulting  there from in or to any  portion  of the  Building  or the  Premises.
Notwithstanding  anything  contained  herein,  Rent payable by Tenant  hereunder
shall not be abated,  if the damage is caused by any act or  omission of Tenant,
its agents,  servants,  employees or any other person entering upon the Premises
under express or implied invitation of Tenant.

                                   ARTICLE 17
                              TRANSFERS BY LANDLORD

17.1  SALE, CONVEYANCE AND ASSIGNMENT

      Nothing  in this  Lease  shall  restrict  the right of  Landlord  to sell,
convey, assign or otherwise deal with the Land or the Building,  subject only to
the rights of Tenant under this Lease.

17.2  Effect of Sale, Conveyance or Assignment

      A sale,  conveyance or assignment of the Building shall operate to release
Landlord from  liability  from and after the effective  date thereof upon all of
the covenants, terms and conditions of this Lease, express or implied, except as
such may relate to the period  prior to such  effective  date,  and Tenant shall
thereafter look solely to Landlord's successor in interest in and to this Lease.
This Lease shall not be affected by any such sale, conveyance or assignment, and
Tenant shall attorn to Landlord's successor in interest there under.

17.3  SUBORDINATION

      This Lease is and shall be subject and  subordinate in all respects to any
and all  mortgages  and  leasehold  interests  now or  hereafter  placed  on the
Building  or  Land,   and  to  all  renewals,   modifications,   consolidations,
replacements and extensions thereof.

17.4  ATTORNMENT

      If the interest of Landlord is  transferred  to any person  (herein called
the  "Purchaser") by reason of foreclosure or other  proceedings for enforcement
of any such  mortgage,  or by delivery of a deed in lieu of such  foreclosure or
other  proceedings,   Tenant  shall  immediately  and  automatically  attorn  to
Purchaser.

17.5  EFFECT OF ATTORNMENT

      Upon attornment under Article 17.4 this Lease shall continue in full force
and effect as a direct lease between Purchaser and Tenant,  upon all of the same
terms,  conditions  and  covenants  as are set forth in this Lease  except that,
after such attornment, Purchaser shall not be:

      (a)   liable for any act or omission of Landlord; or

      (b)   subject to any offsets or defenses  which  Tenant might have against
            Landlord; or

      (c)   bound  by  any  prepayment  by  Tenant  of  more  than  one  month's
            installment of Rent, or by any previous  modification of this Lease,
            unless such prepayment or  modification  shall have been approved in
            writing by Purchaser or any predecessor in interest except Landlord.

                                       24
<PAGE>

17.6  EXECUTION OF INSTRUMENTS

      The  subordination  and attornment  provisions of this Article 17 shall be
self-operating and no further instrument shall be required. Nevertheless Tenant,
on request by and without cost to Landlord or any  successor in interest,  shall
execute  and  deliver  any  and  all   instruments   further   evidencing   such
subordination and (where applicable hereunder) attornment.

                                   ARTICLE 18
                NOTICES, ACKNOWLEDGEMENTS, AUTHORITIES FOR ACTION

18.1  NOTICES

      Any notice from one party to the other  hereunder  shall be in writing and
shall be deemed duly served if delivered personally to a responsible employee of
the party being served,  or if mailed by registered or certified  mail addressed
to Tenant at the Premises  (whether or not Tenant has departed from,  vacated or
abandoned  the same) or to Landlord  at 1120,  833 - 4th Avenue  S.W.,  Calgary,
Alberta,  T2P3T5,  attention  Property Manager,  or any other place from time to
time  established  for the payment of Rent.  Any notice  shall be deemed to have
been given at the time of personal delivery or, if mailed,  seven days after the
date of mailing  thereof.  Either  party  shall have the right to  designate  by
notice,  in the manner above set forth, a different address to which notices are
to be mailed.

18.2  ACKNOWLEDGEMENTS

      Each of the  parties  hereto  shall at any time and from time to time upon
not less than 20 days  prior  notice  from the other  execute,  acknowledge  and
deliver a written statement certifying that:

      (a)   this  Lease  is in  full  force  and  effect,  subject  only to such
            modification (if any) as may be set out therein;

      (b)   Tenant is in  possession of the Premises and paying Rent as provided
            in this Lease;

      (c)   the dates (if any) to which Rent is paid in advance; and

      (d)   that there are not, to such party's  knowledge any uncured  defaults
            on the  part  of the  other  party  hereunder,  or  specifying  such
            defaults if any are claimed.

Any  such  statement  may be  relied  upon  by  any  prospective  transferee  or
encumbrances of all or any portion of the Building,  or any assignee of any such
persons.  If Tenant  fails to timely  deliver  such  statement,  Tenant shall be
deemed to have acknowledged that this Lease is in full force and effect, without
modification  except as may be  represented  by Landlord,  and that there are no
uncured defaults in Landlord's performance.

18.3  AUTHORITIES FOR ACTION

      Landlord may act in any matter provided for herein by its property manager
and any other  person who shall from time to time be  designated  by Landlord by
notice to Tenant.  Tenant shall  designate in writing one or more persons to act
on its  behalf  in any  matter  provided  for  herein  and may from time to time
change,  by notice to  Landlord,  such  designation.  In the absence of any such
designation,  the person or  persons  executing  this Lease for Tenant  shall be
deemed to be  authorized  to act on behalf of Tenant in any matter  provided for
herein.

                                       25
<PAGE>

                                   ARTICLE 19
                                     DEFAULT

19.1  INTEREST AND COSTS OF LEASE OF SPACE

      Tenant shall pay to Landlord interest at a rate equal to 5% per annum over
the  prime  rate  charged  by  the  Landlord's  principal  banker  to  Landlord,
calculated and compounded  monthly,  upon all Rent required to be paid hereunder
from  the due  date  for  payment  thereof  until  the  same is  fully  paid and
satisfied. Tenant shall indemnify Landlord against all costs, charges (including
legal fees and  disbursements on a solicitor and his own client basis ) lawfully
and  reasonably  incurred  in  enforcing  payment  thereof,   and  in  obtaining
possession of the Premises after default of Tenant or upon expiration or earlier
termination of the Term of this Lease,  or in enforcing  covenant,  provision or
agreement of Tenant herein contained.

19.2  RIGHT OF LANDLORD TO PERFORM COVENANTS

      All  covenants  and  agreements to be performed by Tenant under any of the
terms of this Lease shall be  performed  by Tenant,  at  Tenant's  sole cost and
expense,  and without abatement of Rent. If Tenant shall fail to perform any act
on its part to be performed  hereunder,  and such failure shall  continue for 10
days  after  notice  thereof  from  Landlord,  Landlord  may (but  shall  not be
obligated  to do so) perform such act without  waiving or releasing  Tenant from
any of its  obligations  relative  thereto.  All sums paid or costs  incurred by
Landlord in so  performing  such acts under this  Article  19.2,  together  with
interest  thereon  at the rate set out in  Article  19.1 from the date each such
payment  was made or each such cost  incurred by  Landlord,  shall be payable by
Tenant to Landlord on demand.

19.3  EVENTS OF DEFAULT

      If and whenever:

      (a)   all or any part of the Rent  hereby  reserved  is not paid when due,
            and  such  default  continues  for  seven  days  after  the due date
            thereof;

      (b)   the  remaining  Term  of  this  Lease,  or any  goods,  chattels  or
            equipment  of  Tenant  is  taken  or  exigible  in  execution  or in
            attachment or if a writ of execution is issued against Tenant;

      (c)   Tenant becomes  insolvent or commits an act of bankruptcy or becomes
            bankrupt or takes the  benefit of any  statute  that may be in force
            for bankrupt or insolvent  debtors or becomes  involved in voluntary
            or  involuntary  winding-up  proceedings  or if a receiver  shall be
            appointed for the business, property, affairs or revenues of Tenant;

      (d)   Tenant  makes a bulk  sale  of its  goods  or  moves  or  commences,
            attempts or threatens to move its goods,  chattels and equipment out
            of the Premises (other than in the normal course of its business) or
            ceases to conduct business from the Premises; or

      (e)   Tenant fails to observe,  perform and keep each and every one of the
            covenants,  agreements,  provisions,   stipulations  and  conditions
            herein contained to be observed, performed and kept by Tenant (other
            than  payment  of Rent) and  persist in such  failure  after 10 days
            notice by Landlord requiring that Tenant remedy,  correct, desist or
            comply (or if any such breach would reasonably  require more than 10
            days to rectify, unless Tenant commences rectification within the 10
            days notice  period and  thereafter  promptly  and  effectively  and
            continuously proceeds with the rectification of the breach);

                                       26
<PAGE>

then and in any of such cases, at the option of Landlord, the full amount of the
then current  month's and the next ensuing three months'  installments of Annual
Rent,  together  with all  expenses  incurred by Landlord in  performing  any of
Tenant's   obligations   under  this  Lease,   re-entering  or  terminating  and
re-letting,  collecting  sums due or payable by Tenant,  effecting  seizure  and
realizing  upon  assets  seized  (including  brokerage  fees and legal  fees and
disbursements  on a  solicitor  and his own client  basis),  and the  expense of
keeping the Premises in good order,  repairing the same and  preparing  them for
re-letting,   shall  immediately   become  due  and  payable  and  Landlord  may
immediately  distain for the same,  together  with any arrears then unpaid;  and
Landlord may without notice or any form of legal process forthwith re-enter upon
and take possession of the Premises or any part thereof in the name of the whole
and remove and sell Tenant's goods,  chattels and trade fixtures there from, any
rule of law or equity to the  contrary  notwithstanding;  and Landlord may seize
and sell such  goods,  chattels  and  equipment  of Tenant  whether  within  the
Premises or removed  there from,  and the Tenant waives or renounces the benefit
of any  present or future law taking away or limiting  the  Landlord's  right of
distress on the property of the Tenant,  and may apply the  proceeds  thereof to
all Rent and other payments to which Landlord is then entitled under this Lease.
Any such sale may be effected in the discretion of Landlord by public auction or
otherwise,  and either in bulk or by individual item, or partly by one means and
partly by another,  all as Landlord in its entire  discretion may decide. If any
of Tenant's  property is disposed of as provided in this Article  19.3,  10 days
prior  notice  to  Tenant of  disposition  shall be  deemed  to be  commercially
reasonable.

19.4  WAIVER OF EXEMPTION AND REDEMPTION

      Notwithstanding  anything  contained  in any statute now or  hereafter  in
force  limiting or  abrogating  the right of distress,  none of Tenant's  goods,
chattels or trade fixtures on the Premises at any time during the continuance of
the Term shall be exempt from levy by distress for Rent in arrears, and upon any
claim  being  made for such  exemption  by Tenant or on  distress  being made by
Landlord  this  agreement  may be pleaded as an estoppel  against  Tenant in any
action  brought to test the right to levying upon any such goods as are named as
exempted in any such statute,  Tenant hereby  waiving all and every benefit that
could or might have  accrued to Tenant  under and by virtue of any such  statute
but for this  Lease.  Tenant  hereby  expressly  waives  any and all  rights  of
redemption granted by or under any present or future laws in the event of Tenant
being  evicted  or  dispossessed  for any  cause,  or in the  event of  Landlord
obtaining  possession of the  Premises,  by reason of the violation by Tenant of
any of the terms or conditions of this Lease or otherwise.

19.5  SURRENDER

      If and  whenever  Landlord is entitled to or does  re-enter,  Landlord may
terminate  this Lease by giving notice  thereof,  and in such event Tenant shall
forthwith vacate and surrender the Premises.

19.6  PAYMENTS

      If Landlord shall re-enter or if this Lease shall be terminated hereunder,
Tenant shall pay to Landlord on demand:

      (a)   Rent up to the time of re-entry or  termination,  whichever shall be
            the later, plus accelerated rent as herein provided;

                                       27
<PAGE>

      (b)   all  expenses  incurred by Landlord  in  performing  any of Tenant's
            obligations  under  this  Lease,   re-entering  or  terminating  and
            re-letting, collecting sums due or payable by Tenant, realizing upon
            assets  seized   (including   brokerage  fees  and  legal  fees  and
            disbursements  on a  solicitor  and his own client  basis),  and the
            expense of keeping the  Premises in good order,  repairing  the same
            and preparing them for re-letting; and

      (c)   as damages for the loss of income of Landlord expected to be derived
            from the  Premises,  the  amounts  (if any) by which the Rent  which
            would have been  payable  under this Lease  exceeds the payments (if
            any)  received  by  Landlord  from other  tenants  in the  Premises,
            payable on the first day of each month during the period which would
            have  constituted the unexpired  portion of the Term had it not been
            terminated, or at the election of Landlord by notice to Tenant at or
            after re-entry or  termination,  a lump sum amount equal to the Rent
            which would have been payable under this Lease from the date of such
            election  during  the  period  which  would  have   constituted  the
            unexpired portion of the Term had it not been terminated, reduced by
            the rental value of the Premises for the same period, established by
            reference to the terms and conditions  upon which  Landlord  re-lets
            them if such re-letting is accomplished  within a reasonable  period
            after  termination,  and otherwise  established  by reference to all
            market and other relevant circumstances; Rent and rental value being
            reduced to present worth at an assumed interest rate of 10% per cent
            on the basis of Landlord's  estimates and  assumptions of fact which
            shall govern unless shown to be erroneous.

19.7  REMEDIES CUMULATIVE

      No reference  to nor exercise of any specific  right or remedy by Landlord
shall  prejudice  or preclude  Landlord  from  exercising  or invoking any other
remedy in respect  thereof,  whether  allowed  at law or in equity or  expressly
provided for herein.  No such remedy  shall be  exclusive or dependent  upon any
other such remedy,  but Landlord may from time to time  exercise any one or more
of such remedies independently or in combination.

                                   ARTICLE 20
                              HAZARDOUS SUBSTANCES

20.1  TENANT'S COVENANTS

      The Tenant covenants and agrees that it will:

      (a)   not bring or allow any  Hazardous  Substance  to be brought onto the
            Land  or  Building  or  the  Premises   except  in  compliance  with
            Environmental Law;

      (b)   comply at all times and  require all those for whom the Tenant is in
            law responsible to comply at all times with  Environmental Law as it
            affects the Premises or the Land or Building;

      (c)   give notice to the  Landlord of the  presence at any time during the
            Term of any  Hazardous  Substance  on the  Premises  (or the Land or
            Building if such substance is in the control of the Tenant) together
            with such  information  concerning such Hazardous  Substance and its
            presence on the Premises or the Land or Building as the Landlord may
            require;

                                       28
<PAGE>

      (d)   give notice to the Landlord of any occurrence  which might give rise
            to a duty  under  Environmental  Law by  either  the  Tenant  or the
            Landlord with respect to the presence of any Hazardous  Substance on
            the Premises or the Land or Building including,  without limitation,
            Notice of any  discharge,  release,  leak,  spill or escape into the
            environment  of any Hazardous  Substance at, to or from the Premises
            or the Land or Building;

      (e)   in any case where the Tenant has given  notice as to the presence of
            a Hazardous Substance on the Premises or the Land or Building, or is
            required to give such notice,  or where the Landlord has  reasonable
            grounds to believe  that any  Hazardous  Substance is going to be or
            has been  brought  onto the  Premises or the Land or Building by the
            Tenant or any person for whom the Tenant is in law  responsible,  to
            commission  an  Environmental  Audit at the  Tenant's  expense  when
            required by the Landlord to do so;

      (f)   comply with any  investigative,  remedial or precautionary  measures
            required under  Environmental  Law or as reasonably  required by the
            Landlord, be fully and completely liable to the Landlord for any and
            all investigation, clean up, remediation,  restoration or monitoring
            costs or any costs incurred to comply with  Environmental Law or any
            request by the Landlord that such measures be taken;

      (g)   protect,  indemnify and save each of the Landlord and its directors,
            officers,  employees,  agents,  successors  and  assigns  completely
            harmless  from and  against  any  Environmental  Claim,  directly or
            indirectly  incurred,  sustained or suffered by or asserted  against
            the Landlord  and/or its  directors,  officers,  employees,  agents,
            successors and assigns caused by or attributable to, either directly
            or  indirectly,  any act or omission of the Tenant and/or any person
            for whom the Tenant is in law responsible;

      (h)   enter into any  additional  contract  of  insurance  respecting  the
            Premises  which the Landlord may  reasonably  require to protect the
            Landlord and its directors,  officers, employees, agents, successors
            and assigns from any Environmental Claim respecting the Premises;

      (i)   provide to the Landlord  such security as the Landlord may from time
            to time  require,  acting  reasonably,  to ensure  compliance by the
            Tenant of its covenants herein contained; and

      (j)   provide  access to the Premises  for the  Landlord or its agent,  to
            conduct an  Environmental  Audit of the  Premises,  at the  Tenant's
            expense,  at least two (2) months prior to the expiry of the Term of
            this Lease.

20.2  INQUIRIES BY LANDLORD

      The Tenant hereby  authorizes  the Landlord to make inquiries from time to
time of any  government  or  governmental  agency with  respect to the  Tenant's
compliance with the Environmental Law at the Premises,  and the Tenant covenants
and agrees that the Tenant will from time to time provide to the  Landlord  such
written  authorization  as the  Landlord  may  reasonably  require  in  order to
facilitate  the  obtaining  of such  information.  The Landlord or its agent may
inspect the Premises  from time to time without  notice,  in order to verify the
Tenant's  compliance  with the  Environmental  Law and the  requirements of this
Lease respecting Hazardous  Substance.  If the Landlord suspects that the Tenant
is in breach of any of its covenants herein, the Landlord and its agent shall be
entitled to conduct an  Environmental  Audit  immediately,  and the Tenant shall
provide  access to the Landlord and its agent for the purpose of  conducting  an
Environmental  Audit. Such Environmental Audit shall be at the Tenant's expense,
and  the  Tenant  shall  forthwith   remedy  any  problems   identified  by  the
Environmental Audit, and shall ensure that it complies with all of its covenants
herein. Upon request by the Landlord from time to time, the Tenant shall provide
to the  Landlord  a  certificate  executed  by a senior  officer  of the  Tenant
certifying ongoing compliance by the Tenant with its covenants contained herein.

                                       29
<PAGE>

20.3  Ownership of Hazardous Substances

      If the Tenant shall bring or create upon the Premises, the Building or the
Land any Hazardous  Substance or if the conduct of the Tenant's  business  shall
cause there to be any Hazardous  Substance  upon the Land or the Premises  then,
notwithstanding any rule of law to the contrary,  such Hazardous Substance shall
be and remain the sole and exclusive property of the Tenant and shall not become
the property of the Landlord  notwithstanding  the degree of  affixation  of the
Hazardous  Substance  or the goods  containing  the  Hazardous  Substance to the
Premises or the Land and  notwithstanding  the expiry or earlier  termination of
this Lease.

20.4  Landlord's Remedies upon Default

      Upon the Tenant's  material  default under this Article and in addition to
the rights and remedies set forth elsewhere in this Lease, the Landlord shall be
entitled to the following rights and remedies:

      (a)   at the Landlord's option, to terminate this Lease, and/or

      (b)   to recover any and all damages associated with the material default,
            including without limitation,  in addition to any rights reserved or
            available to the Landlord in respect of an early termination of this
            Lease,  cleanup costs and charges,  civil and criminal penalties and
            fees,  loss of business and sales by the Landlord and other  tenants
            of the Land or Building,  any and all damages and claims asserted by
            third parties and Landlord's solicitors' fees and disbursements on a
            solicitor and his own client basis.

                                   ARTICLE 21
                                  MISCELLANEOUS

21.1  RELATIONSHIP OF PARTIES

      Nothing contained in this Lease shall create any relationship  between the
parties  hereto other than that of landlord and tenant,  and it is  acknowledged
and agreed that Landlord does not in any way or for any purpose become a partner
of Tenant in the conduct of its business,  or a joint  venturer or a member of a
joint or common enterprise with Tenant.

21.2  CONSENT NOT UNREASONABLY WITHHELD

      Except as otherwise specifically provided, whenever consent or approval of
Landlord or Tenant is required  under the terms of this Lease,  such  consent or
approval shall not be unreasonably withheld or delayed.  Tenant's sole remedy if
Landlord unreasonably withholds or delays consent or approval shall be an action
for  specific  performance,  and Landlord  shall not be liable for  damages.  If
either  party  withholds  any consent or  approval,  such party shall on written
request  deliver  to the other  party a written  statement  giving  the  reasons
therefore.

21.3  NAME OF BUILDING

      Landlord shall have the right,  after 30 days notice to Tenant,  to change
the  name,  number or  designation  of the  Building,  during  the Term  without
liability to Tenant.

                                       30
<PAGE>

21.4  APPLICABLE LAW AND CONSTRUCTION

      This Lease unless otherwise agreed by the parties shall be governed by and
construed  under the laws of the  jurisdiction in which the Building is located,
and its  provisions  shall be  construed  as a whole  according  to their common
meaning and not strictly for or against  Landlord or Tenant.  The words Landlord
and Tenant  shall  include  the plural as well as the  singular.  Time is of the
essence  in this Lease and each of its  provisions  and  continues  to be of the
essence  notwithstanding any indulgences given by Landlord.  The captions of the
Articles are included for  convenience  only,  and shall have no effect upon the
construction or interpretation of this Lease.

21.5  ENTIRE AGREEMENT

      There are no terms and  conditions  which at the date of execution of this
Lease  are  additional  or  supplemental  to those  set out on the pages of this
Lease.  This Lease contains the entire agreement between the parties hereto with
respect to the subject matter of this Lease. Tenant acknowledges and agrees that
it has not relied  upon any  statement,  representation,  agreement  or warranty
except such as are set out in this Lease.

21.6  AMENDMENT OR MODIFICATION

      Unless  otherwise  specifically  provided  in this  Lease,  no  amendment,
modification,  or supplement to this Lease shall be valid or binding  unless set
out in writing  and  executed  by the  parties  hereto in the same manner as the
execution of this Lease.

21.7  CONSTRUED COVENANTS AND SEVERABILITY

      All of the  provisions  of this Lease are to be construed as covenants and
agreements as though the word importing such covenants and agreements  were used
in each separate Article hereof. Should any provision of this Lease be or become
invalid,  void, illegal or not enforceable,  it shall be considered separate and
severable from the Lease and the remaining  provisions shall remain in force and
be  binding  upon the  parties  hereto as  though  such  provision  had not been
included.

21.8  NO IMPLIED SURRENDER OR WAIVER

      No  provisions  of this  Lease  shall be  deemed  to have  been  waived by
Landlord unless such waiver is in writing signed by Landlord.  Landlord's waiver
of a  breach  of any  term or  condition  of this  Lease  shall  not  prevent  a
subsequent  act, which would have originally  constituted a breach,  from having
all the force and effect of any original breach. Landlord's receipt of Rent with
knowledge  of a breach by Tenant of any term or condition of the Lease shall not
be deemed a waiver of such term or condition.  No act or thing done by Landlord,
its  agents or  employees  during the Term  shall be deemed an  acceptance  of a
surrender  of the  Premises,  and no  agreement  to  accept a  surrender  of the
Premises shall be valid, unless in writing and signed by Landlord.  The delivery
of  keys to any of  Landlord's  agents  or  employees  shall  not  operate  as a
termination  of the Lease or a surrender of the Premises.  No payment by Tenant,
or receipt by Landlord,  of a lesser amount than the Rent due hereunder shall be
deemed to be other than on account of the earliest  stipulated  Rent,  nor shall
any  endorsement  or  statement  on any  cheque or any letter  accompanying  any
cheque, or payment as Rent, be deemed an accord and  satisfaction,  and Landlord
may accept such  cheque or payment  without  prejudice  to  Landlord's  right to
recover  the  balance  of such Rent or  pursue  any other  remedy  available  to
Landlord.

                                       31
<PAGE>

21.9  SUCCESSORS BOUND

      Except  as  otherwise  specifically  provided,  the  covenants,  terms and
conditions  contained  in  this  Lease  shall  apply  to  and  bind  the  heirs,
successors, executors, administrators and assigns of the parties hereto.

21.10 LIABILITY: JOINT/SEVERAL

      In the  event  there is more than one  entity  or person  which or who are
parties  constituting the Tenant under this Lease,  the obligation  imposed upon
the Tenant under this Lease shall be joint and several.

21.11 SET-OFF

      In the event the  Landlord is liable for any payment or  reimbursement  to
the Tenant then unless  otherwise  provided  for in this Lease  Landlord has the
right to set-off such  reimbursement or liability against  liabilities of Tenant
to Landlord.

21.12 REGISTRATIONS

      The Tenant  agrees with the  Landlord  not to register  this Lease nor any
notice  of this  Lease in any Land  Titles  Office in any form  without  written
consent of the  Landlord.  If such  consent is provided  such notice of Lease or
caveat  shall be in such  form as the  Landlord  shall  have  approved  and upon
payment of the  Landlord's  reasonable  fee for same and  allocable  transfer or
recording  taxes or  charges.  The  Tenant  shall  remove and  discharge  at the
Tenant's  expense the registration of such a notice at the expiry or the earlier
termination  of the Term and in the  event of  Tenant's  failure  to  remove  or
discharge  this  notice or caveat  after 10 days  written  notice by Landlord or
Tenant,  the  Landlord  may in the name and on  behalf of the  Tenant  execute a
discharge of such a notice in order to remove and discharge  such notice and for
the purposes thereof, the Tenant hereby irrevocably constitutes and appoints any
officer of the Landlord the true and lawful attorney of the Tenant.

21.13 UNAVOIDABLE DELAY

      Except as herein otherwise expressly provided,  if and whenever and to the
extent that either the  Landlord or the Tenant  shall be  prevented,  delayed or
restricted  in the  fulfillment  of any  obligation  hereunder in respect to the
supply or  provision  of any service or utility,  the making of any repair,  the
doing of any work or any other thing (other than the payment of monies  required
to be paid by the Tenant to the Landlord hereunder) by reason of:

      (a)   strikes or work stoppages;

      (b)   being  unable to obtain  any  material,  service,  utility or labour
            required to fulfill such obligations; or

      (c)   other unavoidable occurrences,

then the time for fulfillment of such condition and obligation shall be extended
during the period in which such  circumstances  operates  to  prevent,  delay or
restrict  fulfillment  thereof,  and the other  party to this Lease shall not be
entitled to compensation for any  inconvenience,  nuisance or discomfort thereby
occasioned.

                                       32
<PAGE>

21.14 RIGHT OF FIRST REFUSAL

      So long as:

      (a)   an Event of Default has not occurred; and

      (b)   Paradigm  Geophysical  Canada  Ltd. is in  possession  of all of the
            Premises,  has not sublet the  Premises  in part or in whole and has
            not assigned the Lease in part or in whole or otherwise  parted with
            possession of the Premises in part or in whole;

the Landlord  agrees that prior to renting the space  located in the Building on
the 6th floor  cross-hatched  in black on the plan attached as Schedule A-2 (the
"First  Refusal  Space") to a third  party and  subject  to any prior  rights in
respect of the First Refusal  Space , the Landlord  shall submit to the Tenant a
copy of the  proposed  lease  which the  Landlord  is willing to accept from the
third party (the "Offered  Lease").  On or before the 2nd business day after the
date of such  submission  the  Tenant  will have the right (the  "First  Refusal
Right") to send the Landlord a notice stating that the Tenant elects to rent the
First  Refusal Space upon the identical  terms and  conditions  set forth in the
Offered Lease (the "Offered Lease Terms").

      If the Tenant  duly and timely  exercises  the First  Refusal  Right,  the
Landlord and the Tenant will  promptly (and in any event within 10 business days
after the  Landlord's  receipt of the Tenant's  notice) enter into a lease or an
amendment  to this Lease for the First  Refusal  Space (the "New  Lease") on the
Offered  Lease  Terms.  If for any reason  the  Tenant  fails to duly and timely
exercise the First Refusal  Right,  or if the Tenant  properly  exercises it but
thereafter for any reason  (except the  Landlord's  fault) does not timely enter
into the New Lease,  the Landlord  will be free to lease the First Refusal Space
to another tenant on the Offered Lease Terms and the First Refusal Right and the
Landlord's  obligation  under this section will cease to have effect  throughout
the remainder of the Term and any extensions or renewals thereof.

      Notwithstanding  any contrary  provision hereof the Tenant agrees that any
default by it under this Lease will be deemed to constitute a like default under
the New Lease.

21.15 PARKING

      The Landlord  agrees to make  available to the Tenant as a licensee on the
Commencement Date and thereafter throughout the Term, 4 single stalls in parking
facility in the Building (the "Parking Facility").  The Tenant shall pay parking
fees to the  Landlord  (or to the parking  operator if the  Landlord so directs)
throughout the Term at the prevailing  rates being charged for parking stalls in
the  Parking  Facility,  from time to time,  which at the  Commencement  Date is
$285.00 per permit per month.  Where the prevailing parking rates in the Parking
Facility are being  generally  increased by the Landlord,  the Landlord shall be
entitled to increase  the Tenant's  parking fees upon 30 days written  notice to
the Tenant.  Each such payment shall be made in advance on the first day of each
month  throughout  the Term.  The use of the parking  stalls  within the Parking
Facility by the Tenant shall be conditional on the following:

      (a)   execution and delivery of this Lease by the Landlord and the Tenant;

      (b)   there being no unremedied event of default under Article 19.3;

      (c)   the Landlord  has the right to relocate  any of he Tenant's  parking
            stalls upon 7 days prior notice;

                                       33
<PAGE>

      (d)   the Landlord's right to make such Rules and Regulations with respect
            to the use of the Parking  Facility as the Landlord deems  advisable
            from time to time;

      (e)   the use by the  Tenant of the  Parking  Facility  is  subject to the
            exclusive control of the Landlord;

      (f)   the Tenant shall use the Parking Facility at its sole risk;

      (g)   the Tenant,  if the  Landlord so requests,  entering  into a parking
            agreement on the Landlord's then current standard form;

      (h)   the Landlord shall not be responsible  for any loss due to theft of,
            fire or damage due to  automobiles  or its contents of the Tenant or
            those of its agents, employees, servants, invitees or licensees; and

      (i)   the   licence   granted   to   the   Tenant   being   personal   and
            non-transferable except to its employees and agents.

      The  Tenant's  rights under this section  shall  terminate  upon expiry or
earlier  termination  of the  Lease or the  Landlord  taking  possession  of the
Premises.  The Tenant  acknowledges  and agrees further that the Tenant's rights
under this  section  are  contractual  rights only and do not form a part of the
Premises  and,  further,  that no Landlord and Tenant  relationship  exists with
respect  to  these  rights,  but the  obligations  shall  be  binding  upon  the
successors and assigns of the Landlord's interest in the Building.

      IN WITNESS  WHEREOF  the  parties  hereto have  affixed  their  respective
corporate  seals,  duly  attested  by the hands of their  respective  authorized
officers in that regard as of the day and year first above written.

LANDLORD:

                                           CONSOLIDATED PROPERTIES

(520 - 5TH AVENUE) LTD.
R. Scott Hutcheson, President & CEO        Per: /s/R. Scott Hutcheson
-----------------------------------           ----------------------------------
                                           I/We Have the authority to bind the
                                           corporation

TENANT:
                                           PARADIGM GEOPHYSICAL CANADA LTD.

Moosy Teablus, President                   Per: /s/ Moosy Teablus
-----------------------------------           ----------------------------------
Name & Title

Mady Payner, Office Manager                Per: /s/ Mady Payner
-----------------------------------           ----------------------------------
Name & Title
                                           I/We Have the authority to bind the
                                           corporation

                                       34
<PAGE>

                    SCHEDULE A - FLOOR PLAN (Area A Premises)

SCHEDULE A-1 - FLOOR PLAN (Area B Premises)

(Floor Plan Image)

SCHEDULE A-1 - FLOOR PLAN (Area C Premises)

(Floor Plan Image)

<PAGE>

                         SCHEDULE B - LEGAL DESCRIPTION

PLAN "A 1" BLOCK 16

LOTS 23,  24 AND 25 AND  THAT  PORTION  OF LOT 26 WHICH  LIES TO THE EAST OF THE
WESTERLY 2.88 FEET THROUGHOUT THE SAID LOT 26

EXCEPTING THEREOUT: (AS TO SURFACE)

PLAN              NUMBER            AREA
-----             ------            -----
ROAD              8910616           (PTN) (LOTS 23, 24, 25,26)

<PAGE>

                  SCHEDULE C - DETERMINATION OF OCCUPANCY COSTS

DEFINITIONS:

      In this Lease

      (a)   "Capital  Tax"  means an amount  allocated  by the  Landlord  to the
            Building  in  respect  of  taxes,   rates,  duties  and  assessments
            presently or hereafter levied,  rated, charged or assessed from time
            to time  upon the  Landlord  and  payable  by the  Landlord  (or any
            corporation  acting on behalf of the  Landlord)  on  account  of the
            capital that the Landlord has invested in the Building.  Capital Tax
            shall be allocated:

            (i)   as if the  amount  of such tax  were  that  amount  due if the
                  Building were the only property of the Landlord; and

            (ii)  on the basis of the Landlord's  determination of the amount of
                  capital attributable to the Building.

            Capital Tax also means the amount of any capital,  sales or place of
            business tax levied by any  government  or other  applicable  taxing
            authority  against the Landlord with respect to the Building whether
            known as Capital Tax or by any other name.

      (b)   "Occupancy Costs" means the Tenant's Pro-rata Share of the amount of
            Operating Expenses and Real Estate Taxes, calculated annually.

      (c)   "Operating Expenses" shall mean all costs which shall be incurred by
            the  Landlord  for the complete  maintenance,  repair,  replacement,
            operating and  administration of the Building and property,  such as
            are in keeping with maintaining the standard of a first class office
            building so as to give it high character and distinction,  including
            without limitation:

                  (1)   cost of heating, ventilating and air conditioning;

                  (2)   cost of providing hot and cold water;

                  (3)   cost of sewer charges;

                  (4)   cost of fire,  casualty,  liability,  rental  and  other
                        insurance  which the  Landlord  carries and the costs of
                        any deductible amount paid by the Landlord in connection
                        with a claim made by the Landlord under such insurance;

                  (5)   cost of Building office expenses,  including telephones,
                        stationery and supplies;

                  (6)   cost of fuel;

                  (7)   cost of providing  electricity  and other  utilities not
                        otherwise chargeable to tenants;

<PAGE>

                  (8)   cost of all elevator and  escalator (if installed in the
                        Building) maintenance and operation;

                  (9)   cost   of   porters,   reception   staff,   maintenance,
                        management    and    engineering    staff    and   other
                        non-administrative personnel,  including salaries, wages
                        and fringe benefits;

                  (10)  cost of providing security;

                  (11)  cost of providing janitorial  services;  window cleaning
                        and garbage removal;

                  (12)  cost of supplies and materials;

                  (13)  cost of landscaping, gardening and snow and ice removal;

                  (14)  cost of decoration and maintenance of Common Areas;

                  (15)  cost of consulting engineering fees;

                  (16)  cost  of  repairs  and  replacements,  unless  otherwise
                        included under operating costs;

                  (17)  costs of all service contracts;

                  (18)  cost of  business  taxes and audit fees for  determining
                        the amounts payable under leases;

                  (19)  cost  of the  rental  charge  which  in  the  Landlord's
                        reasonable  opinion is the  average  market  rent or the
                        average rent charged to tenants of the Building, for the
                        non-leasable   service   areas   serving  the   Building
                        including without limitation and without duplication any
                        enclosed  garbage,  utility,  transformer,   electrical,
                        telephone or storage rooms, corridors, and lobby area;

                  (20)  cost  of  each  "major   expenditure"   (as  hereinafter
                        defined) which may be expensed in the year incurred,  or
                        at the  Landlord's  option  amortized over the period of
                        the Landlord's  reasonable estimate of the economic life
                        of the item  acquired,  but not to exceed fifteen years,
                        using  equal  monthly   installments  of  principal  and
                        interest at the prime  commercial  loan rate  charged to
                        borrowers  having the highest credit rating from time to
                        time  by  the  Landlord's   principal  bank,  per  annum
                        compounded  semi-annually,   where  "major  expenditure"
                        shall  mean  any   single   expenditure   incurred   for
                        replacement of machinery,  equipment, building elements,
                        repairs,  systems or facilities  in connection  with the
                        property or Building which  expenditure is more than 10%
                        of the total  Occupancy  Costs for the  previous  Fiscal
                        Year, or for  modifications or additions to the Building
                        or  property  if one of the  principal  purposes of such
                        modification   or   addition   was  to   reduce   energy
                        consumption  or  Operating  Expenses or was  required by
                        government regulation;

<PAGE>

                  (21)  depreciation    for   all   structures,    improvements,
                        furnishings, fixtures, equipment, machinery, facilities,
                        systems,  and property  which is part of or installed in
                        or used in connection  with the Building which, by their
                        nature  require   periodic  or  substantial   repair  or
                        replacement, or which are installed or used primarily to
                        reduce the cost or  consumption  of other items included
                        in  Operating  Expenses  (whether  or not such  costs in
                        respect of the same are, in fact, reduced); and

                  (22)  the cost of management  fees paid to managing  agents or
                        Landlord's  charges  in  lieu  thereof  if the  Landlord
                        manages the property;

      There shall be excluded from Operating Expenses the following:

                  i.    interest on  Landlord's  debt and capital  retirement of
                        debt;

                  ii.   such  Operating  Expenses as are recovered from proceeds
                        of insurance paid to the Landlord;

                  iii.  costs  as   determined  by  the  Landlord  of  repairing
                        structural defects in the Building;

                  iv.   costs as  determined  by the Landlord of  acquiring  new
                        tenants to the property; and

                  v.    any  amounts  directly  charged by the  Landlord  to any
                        tenant or tenants.

      (d)   "Real Estate Taxes" means: (a) any form of assessment (including any
            "special"  assessment),  property  tax,  license  fee,  license tax,
            business license fee,  business license tax,  commercial rental tax,
            levy,  charge,  penalty or tax,  imposed by any authority having the
            direct  power to tax,  including  any city,  county,  provincial  or
            federal government,  or any school,  agricultural,  lighting,  water
            drainage or other improvement or special district  thereof,  against
            the  Premises or the Building or the Lands or any legal or equitable
            interest of Landlord  therein;  (b) any tax on  Landlord's  right to
            rent the  Premises  or against  Landlord's  business  of leasing the
            Premises;   (c)  any  assessment,   tax,  fee,  levy  or  charge  in
            substitution,  partially  or  totally,  of or  in  addition  to  any
            assessment,  tax, fee, levy or charge previously included within the
            definition of Real Estate Taxes which may be imposed by governmental
            agencies for such services as fire protection,  street, sidewalk and
            road maintenance, refuse removal and for other governmental services
            provided to property owners or occupants; (d) all business taxes and
            other  taxes,  if any,  from time to time  payable by Landlord  with
            respect to the Common Areas;  (e) Capital Tax as it relates to or is
            attributed  by Landlord to the Building;  (f) any business  transfer
            tax; (g) any goods and services tax and other taxes payable pursuant
            to Article 8.3 of this Lease;  (h) and all taxes or business  taxes,
            if any,  not  recovered,  or which  in  Landlord's  opinion  are not
            recoverable,  from tenants of the  Building.  It is the intention of
            Landlord and Tenant that all new assessments,  taxes,  fees,  levies
            and charges be included  within the  definition of Real Estate Taxes
            for  purposes of this Lease.  The  following  shall also be included
            within the  definition  of Real  Estate  Taxes for  purposes of this

<PAGE>

            Lease; provided,  however, that Tenant shall pay Landlord the entire
            amount  thereof (i) any tax  allocable to or measured by the area of
            the  Premises or the  rental'payable  hereunder,  including  without
            limitation,  any gross income, privilege, sales or excise tax levied
            by any municipal or provincial or federal  government,  with respect
            to the  receipt  of such  rental,  or upon  or with  respect  to the
            possession, leasing, operating, management, maintenance, alteration,
            repair,  use or  occupancy  by Tenant of the Premises or any portion
            thereof; (ii) any tax upon this transaction or any document to which
            Tenant is a party, creating or transferring an interest or an estate
            in the  Premises;  and  (iii)  all costs  incurred  by the  Landlord
            contesting  or appealing the Real Estate Taxes  (including,  without
            limitation,  legal,  appraisal and other professional fees and costs
            and  administration  and overhead costs).  "Real Estate Taxes" shall
            not include the Landlord's income, franchise,  inheritance or estate
            taxes. (e) "Tenant's  Pro-rata Share" shall be a fraction,  equal to
            the Rentable  Area of the  Premises,  divided by the total  Rentable
            Area of the Building.

      (20)  cost of each "major expenditure" (as hereinafter  defined) which may
            be  expensed  in the  year  incurred,  or at the  Landlord's  option
            amortized over the period of the Landlord's  reasonable  estimate of
            the economic life of the item  acquired,  but not to exceed  fifteen
            years, using equal monthly installments of principal and interest at
            the prime  commercial  loan rate  charged  to  borrowers  having the
            highest credit rating from time to time by the Landlord's  principal
            bank, per annum compounded semi-annually,  where "major expenditure"
            shall  mean any  single  expenditure  incurred  for  replacement  of
            machinery,   equipment,   building  elements,  repairs,  systems  or
            facilities  in  connection  with  the  property  or  Building  which
            expenditure  is more than 10% of the total  Occupancy  Costs for the
            previous  Fiscal  Year,  or for  modifications  or  additions to the
            Building  or  property  if one of the  principal  purposes  of  such
            modification  or  addition  was  to  reduce  energy  consumption  or
            Operating Expenses or was required by government regulation;

      21)   depreciation   for  all   structures,   improvements,   furnishings,
            fixtures, equipment,  machinery,  facilities,  systems, and property
            which  is part of or  installed  in or used in  connection  with the
            Building  which,  by their nature  require  periodic or  substantial
            repair or  replacement,  or which are installed or used primarily to
            reduce the cost or  consumption of other items included in Operating
            Expenses  (whether  or not such costs in respect of the same are, in
            fact, reduced); and

      (22)  the cost of  management  fees paid to managing  agents or Landlord's
            charges in lieu thereof if the Landlord manages the property;

      There shall be excluded from Operating Expenses the following:

      i.    interest on Landlord's debt and capital retirement of debt;

      ii.   such Operating  Expenses as are recovered from proceeds of insurance
            paid to the Landlord;

      iii.  costs as determined by the Landlord of repairing  structural defects
            in the Building;

      iv.   costs as  determined by the Landlord of acquiring new tenants to the
            property; and

      v.    any  amounts  directly  charged  by the  Landlord  to any  tenant or
            tenants.

<PAGE>

      (d)   "Real Estate Taxes" means: (a) any form of assessment (including any
            "special"  assessment),  property  tax,  license  fee,  license tax,
            business license fee,  business license tax,  commercial rental tax,
            levy,  charge,  penalty or tax,  imposed by any authority having the
            direct  power to tax,  including  any city,  county,  provincial  or
            federal government,  or any school,  agricultural,  lighting,  water
            drainage or other improvement or special district  thereof,  against
            the  Premises or the Building or the Lands or any legal or equitable
            interest of Landlord  therein;  (b) any tax on  Landlord's  right to
            rent the  Premises  or against  Landlord's  business  of leasing the
            Premises;   (c)  any  assessment,   tax,  fee,  levy  or  charge  in
            substitution,  partially  or  totally,  of or  in  addition  to  any
            assessment,  tax, fee, levy or charge previously included within the
            definition of Real Estate Taxes which may be imposed by governmental
            agencies for such services as fire protection,  street, sidewalk and
            road maintenance, refuse removal and for other governmental services
            provided to property owners or occupants; (d) all business taxes and
            other  taxes,  if any,  from time to time  payable by Landlord  with
            respect to the Common Areas;  (e) Capital Tax as it relates to or is
            attributed  by Landlord to the  Building;  (0 any business  transfer
            tax; (g) any goods and services tax and other taxes payable pursuant
            to Article 8.3 of this Lease;  (h) and all taxes or business  taxes,
            if any,  not  recovered,  or which  in  Landlord's  opinion  are not
            recoverable,  from tenants of the  Building.  It is the intention of
            Landlord and Tenant that all new assessments,  taxes,  fees,  levies
            and charges be included  within the  definition of Real Estate Taxes
            for  purposes of this Lease.  The  following  shall also be included
            within the  definition  of Real  Estate  Taxes for  purposes of this
            Lease; provided,  however, that Tenant shall pay Landlord the entire
            amount  thereof (i) any tax  allocable to or measured by the area of
            the  Premises or the rental  payable  hereunder,  including  without
            limitation,  any gross income, privilege, sales or excise tax levied
            by any municipal or provincial or federal  government,  with respect
            to the  receipt  of such  rental,  or upon  or with  respect  to the
            possession, leasing, operating, management, maintenance, alteration,
            repair,  use or  occupancy  by Tenant of the Premises or any portion
            thereof; (ii) any tax upon this transaction or any document to which
            Tenant is a party, creating or transferring an interest or an estate
            in the  Premises;  and  (iii)  all costs  incurred  by the  Landlord
            contesting  or appealing the Real Estate Taxes  (including,  without
            limitation,  legal,  appraisal and other professional fees and costs
            and  administration  and overhead costs).  "Real Estate Taxes" shall
            not include the Landlord's income, franchise,  inheritance or estate
            taxes.

      (e)   "Tenant's Pro-rata Share" shall be a fraction, equal to the Rentable
            Area of the  Premises,  divided  by the total  Rentable  Area of the
            Building.

                       SCHEDULE D - RULES AND REGULATIONS

      1.    Security:  Landlord may from time to time adopt appropriate  systems
            and  procedures  for the  security  or safety of the  Building,  any
            persons  occupying,  using or entering the same,  or any  equipment,
            finishings  or  contents  thereof,  and  Tenant  shall  comply  with
            Landlord's reasonable requirements relative thereto.

      2.    Locks:  Landlord  may from time to time  install and change  locking
            mechanisms on entrances to the Building,  Common Areas thereof,  and
            the  Premises,  and  (unless 24 hour  security  is  provided  by the
            Building)  shall  provide to Tenant a reasonable  number of keys and
            replacements therefore to meet the bona fide requirements of Tenant.
            In these rules "keys"  include any device  serving the same purpose.
            Tenant shall not add to or change existing locking mechanisms on any
            door in or to the Premises without Landlord's prior written consent.
            If with Landlord's  consent,  Tenant installs  lock(s)  incompatible
            with the Building master locking system:

<PAGE>

            (a)   Landlord,  without abatement of Rent, shall be relieved of any
                  obligation  under  this Lease to  provide  any  service to the
                  affected areas which requires access thereto;

            (b)   Tenant  shall  indemnify  Landlord  against any  expenses as a
                  result of a forced entry  thereto  which may be required in an
                  emergency; and

            (c)   Tenant shall at the end of the Term and at Landlord's  request
                  remove such lock(s) at Tenant's expense.

      3.    Return of Keys: At the end of the Term, Tenant shall promptly return
            to Landlord  all keys for the  Building  and  Premises  which are in
            possession of Tenant.

      4.    Windows:  Tenant  shall  observe  Landlord's  rules with  respect to
            maintaining uniform drapes and Venetian blinds at all windows in the
            Premises  so  that  the   Building   presents  a  uniform   exterior
            appearance, and shall not install any window shades, screen, drapes,
            covers  or  other  materials  on or at any  window  in the  Premises
            without  Landlord's  written  consent.  Tenant shall ensure that all
            drapes and Venetian blinds are closed on all windows in the Premises
            while they are exposed to direct rays of the sun.

      5.    Repair.  Maintenance.  Alterations  and  Improvements:  Tenant shall
            carry out Tenant's repair, maintenance, alterations and improvements
            in the  Premises  only  during time agreed to in advance by Landlord
            and in a manner  which will not  interfere  with the rights of other
            tenants in the Building.

      6.    Water Fixtures:  Tenant shall not use water fixtures for any purpose
            for  which  they are not  intended,  nor  shall  water be  wasted by
            tampering with such fixtures. Any cost or damage resulting from such
            misuse by Tenant shall be paid for by Tenant.

      7.    Personal  Use  of  Premises:  The  Premises  shall  not be  used  or
            permitted to be used for residential,  lodging or sleeping  purposes
            or for the storage of personal  effects or property not required for
            business purposes.

      8.    Heavy Articles: Tenant shall not place in or move about the Premises
            without  Landlord's  prior  written  consent any safe or other heavy
            article  which in  Landlord's  reasonable  opinion  may  damage  the
            Building,  and  Landlord  may  designate  the  location of any heavy
            articles in the Premises.

      9.    Carpet Pads: In those portions of the Premises where carpet has been
            provided directly or indirectly by Landlord, Tenant shall at its own
            expense  install and  maintain  pads to protect the carpet under all
            furniture having casters other than carpet casters.

      10.   Bicycles.  Animals: Tenant shall not bring any animals or birds into
            the Building, and shall not permit bicycles or other vehicles inside
            or on the sidewalks  outside the Building except in areas designated
            from time to time by Landlord for such purposes.

      11.   Deliveries:  Tenant shall ensure that  deliveries  of materials  and
            supplies to the Premises are made through such entrances,  elevators
            and  corridors  and at  such  times  as may  from  time  to  time be
            designated by Landlord,  and shall  promptly pay or cause to be paid
            to Landlord the cost of repairing any damage in the Building  caused
            by any person making such deliveries.

<PAGE>

      12.   Furniture  and  Equipment:  Tenant shall ensure that  furniture  and
            equipment  being moved into or out of the Premises is moved  through
            such  entrances,  elevators  and  corridors and at such times as may
            from  time to time be  designated  by  Landlord,  and by movers or a
            moving company approved by Landlord, and shall promptly pay or cause
            to be paid to  Landlord  the cost of  repairing  any  damage  in the
            Building  caused  thereby,  and the cost of building staff regarding
            special  moving  requirements  of  the  Tenant.  13.  Solicitations:
            Landlord  reserves  the right to restrict  or  prohibit  canvassing,
            soliciting or peddling in the Building.

      14.   Food and  Beverages:  Only  persons  approved  from  time to time by
            Landlord may prepare,  solicit orders for, sell, serve or distribute
            foods or beverages in the Building, or use the elevators,  corridors
            or Common Areas for any such purpose.  Except with Landlord's  prior
            written  consent and in  accordance  with  arrangements  approved by
            Landlord,  Tenant  shall  not  permit  on the  Premises  the  use of
            equipment for dispensing  food or beverages or for the  preparation,
            solicitation of orders for, sale, serving or distribution of food or
            beverages.

      15.   Refuse: Tenant shall place all refuse in proper receptacles provided
            by Tenant at its, expense in the Premises or in receptacles (if any)
            provided by Landlord for the Building,  and shall keep sidewalks and
            driveways outside the Building, and lobbies,  corridors,  stairwell,
            ducts and shafts of the Building free of all refuse.

      16.   Obstructions:  Tenant shall not obstruct or place  anything in or on
            the  sidewalks or driveways  outside the Building or in the lobbies,
            corridors,  stairwells or other Common Areas of the Building, or use
            such  locations  for any purpose  except access to and exit from the
            Premises  without  Landlord's  prior written  consent.  Landlord may
            remove  at   Tenant's   expense  any  such   obstruction   or  thing
            (unauthorized by Landlord) without notice or obligation to Tenant.

      17.   Dangerous  or Immoral  Activities:  Tenant shall not make any use of
            the Premises which involves the danger of injury to any person,  nor
            shall the same be used for any immoral purpose.

      18.   Proper Conduct:  Tenant shall not conduct itself in any manner which
            is  inconsistent  with  the  character  of the  Building  as a first
            quality Building or which will impair the comfort and convenience of
            other tenants in the Building.

      19.   Employees.  Agents and  Invitees:  In these  Rules and  Regulations,
            Tenant  includes the  employees,  agents,  invitees and licensees of
            Tenant and others permitted by Tenant to use or occupy the Premises.

      20.   Signs: Tenant shall not paint, display, inscribe, place or affix any
            sign, picture, advertisement,  notice, lettering or direction on any
            part of the exterior of the Premises or so as to be visible from the
            exterior of the Premises  without the  Landlord's  written  consent.
            Tenant shall adhere to the building  standard  identification  signs
            for  tenants to be placed on the outside of the doors  leading  into
            the Premises of tenants of multiple tenancy floors.

      <PAGE>

                        SCHEDULE E - TENANT IMPROVEMENTS

1.    Definition of Leasehold Improvements:

      For purposes of the Lease,  the term  "Leasehold  Improvements"  includes,
      without   limitations,   all   fixtures,   improvements,    installations,
      alterations and additions from time to time made,  erected or installed by
      or on behalf of the Tenant, or any previous  occupant of the Premises,  in
      the Premises and by or on behalf of other tenants in other premises in the
      Building  (including  the  Landlord  if  an  occupant  of  the  Building),
      including all partitions and hardware however affixed,  and whether or not
      movable,  all  mechanical  electrical  and utility  installations  and all
      carpeting and drapes,  with the exception  only of furniture and equipment
      not of the nature of the fixtures.

2.    Installation of Improvements and Fixtures:

      (a)   All work including  changes to the structure or the systems employed
            in the Building  necessitated  by the  Tenant's  work shall be first
            approved by the Landlord.

      (b)   The   preparation   of  all  design   and   working   drawings   and
            specifications relating to completion of the Premises for occupation
            by the Tenant and the calling of Tenders  and  letting of  contracts
            relating to the Tenant's work and the  supervision and completion of
            the Tenant's work and payment therefore shall be the  responsibility
            of the Tenant.

      (c)   Approvals  must be  obtained  by the  Tenant  for its work  from the
            municipal   building   department   and   all   authorities   having
            jurisdiction  and the Tenant must submit evidence of these approvals
            to  the  Landlord  before  commencing  work.  The  Tenant  shall  be
            responsible  for  payment  of  all  fees  and  charges  incurred  in
            obtaining said approvals to the Landlord before  commencing work and
            for obtaining an occupancy permit prior to opening.

      (d)   All the  Tenant's  Work  required  by the  Tenant  to  complete  the
            Premises for  occupancy  shall be carried out with good  workmanship
            and shall not be in contravention of the codes or regulations of the
            municipality or any other authority having jurisdiction.

      (e)   Before  commencing  any work,  the Tenant shall furnish the Landlord
            with  written  proof  of  all  contractors'   comprehensive  general
            liability  insurance for limits not less than those  required by the
            Lease. The Landlord shall be named as an additional named insured in
            the Tenant's insurance policy.

      (f)   Before  commencing  any work,  the Tenant shall furnish the Landlord
            with written proof of all contractors'  Workers'  Compensation Board
            Clearance.

      (g)   The Tenant  shall at all times keep the premises and all other areas
            clear of waste materials and refuse caused by itself, its suppliers,
            contractors or by their work.

      (h)   The Landlord may require the Tenant to clean up on a daily basis and
            be entitled to clean up at the Tenant's  expense if the Tenant shall
            not comply with the Landlord's reasonable requirements.

<PAGE>

      (i)   All Tenant  work  including  the  delivery,  storage  and removal of
            materials  shall be subject  to the  reasonable  supervision  of the
            Landlord and shall be performed in  accordance  with any  reasonable
            conditions or regulations imposed by the Landlord including, without
            limitation,  payment on demand of a  reasonable  fee of the Landlord
            for such supervision.

      (j)   In no  event  shall  the  Tenant  alter  or  interfere  with  window
            coverings (if any) or other light control  device (if any) installed
            in the Building.

      (k)   The  Landlord  may  require  that  the  Landlord's  contractors  and
            sub-contractors be engaged for any mechanical or electrical work.

      (1)   No locks shall be installed on the entrance doors or in any doors in
            the Premises that are not keyed to the Building master key system.

      (m)   The Landlord shall not in any way be responsible  for or liable with
            regard to any work carried out or any materials left or installed in
            the Premises and shall be  reimbursed  for any  additional  cost and
            expenses  caused which may be occasioned to it by reason thereof and
            for any delays  which may be  directly or  indirectly  caused by the
            Tenant or its  contractor.  (n) Any  damages  caused by the  Tenant,
            their  contractors  or subtrades  employed on the work to any of the
            structure or the systems employed in the Building or to any property
            of the  Landlord  or of  other  Tenants,  shall be  repaired  by the
            Landlord's  contractor to the  satisfaction  of the Landlord and the
            Landlord may recover the costs incurred from the Tenant.

      (o)   If the Tenant's  contractor  neglects to carry out the work properly
            or fails to perform any work required by or in  accordance  with the
            approved  plans  and  specifications,  the  Landlord,  after 30 days
            written  notice  to the  Tenant  and the  Tenant's  contractor  may,
            without prejudice to any right or remedy,  complete the work, remedy
            the  default or make good any  deficiencies  and  recover  the costs
            incurred from the Tenant.

      (p)   The Tenant  shall  maintain  and keep on the  Premises  at all times
            during  construction and the Term of the Lease, a suitable  portable
            fire extinguisher for Class A, B and C fires.

      (q)   The Tenant shall perform its work  expeditiously and efficiently and
            shall complete the same within the period stipulated in the Offer to
            Lease or any other  agreement  between the parties  subject  only to
            circumstances  over which the Tenant has no control and which by the
            exercise of due diligence could not have been avoided.

      (r)   On  completion  of the Tenant's  work,  the Tenant  shall  forthwith
            furnish to the Landlord a statutory  declaration  stating that there
            are no builders' Hens  outstanding  against the demised  premises on
            account of the Tenant's work and that all accounts for work, service
            and  materials  have been paid in full  with  respect  to all of the
            Tenant's work, together with evidence in writing satisfactory to the
            Landlord that all  assessments  under the Workers  Compensation  Act
            have been paid.

      (s)   The Tenant  shall not suffer or permit any  Builders'  or other lien
            for work,  labour,  services  or  materials  to be filed  against or
            attached  to the entire  premises  or any part  thereof.  The Tenant
            agrees that if any builders' lien is filed, as aforesaid as a result
            of his occupancy or  possession,  the Tenant shall do all within its
            power to have the lien removed at the earliest  possible date.  This
            includes,  but shall not be limited to, payment of monies into court
            and/or any other remedy which would result in the lien being removed
            from the titles for the entire premises forthwith.

<PAGE>

      (t)   No work shall be  commenced  by the Tenant  until all  drawings  and
            specifications  have been  approved in writing by the  Landlord  and
            until  the  Tenant  has  secured   approval  and  permits  from  all
            authorities  having  jurisdiction and submitted proof of same to the
            Landlord.  The  Tenant  shall  complete  all  work  in  a  good  and
            workmanlike  manner,  and in strict accordance with the drawings and
            specifications  approved  by the  Landlord.  The  Tenant  agrees  to
            indemnify  and save the  Landlord  harmless  from any and all  loss,
            damage or injury  which may result from the Tenant's  activities  in
            the entire premises in completing the demised premises as aforesaid.
            The Tenant  acknowledges  and agrees that there may be inconvenience
            associated  with  completing  either  the  Landlord's  Work  or  the
            Tenant's Work.

      (u)   If the Tenant  does not comply with the  provisions  of the Lease or
            any other  agreement  relative to the  construction or occupation of
            the Premises,  including this Schedule, the Landlord, in addition to
            and not in lieu or by other  rights or  remedies,  shall have any or
            all of the following rights in its discretion:

            (i)   to declare  all fees,  charges  and other sums  payable by the
                  Tenant to the  Landlord  pursuant to this  Schedule to be rent
                  and to be  collectable  as rent under the  provisions  of this
                  Lease; or

            (ii)  to declare and treat the Tenant's  non-compliance as a default
                  or breach of covenant  under this Lease and exercise any right
                  available  under the  provisions of this Lease,  including the
                  right of termination.

3.    Removal of Improvements and Fixtures:

      All Leasehold  Improvements in or upon the Premises shall immediately upon
      their placement be and become the Landlord's property without compensation
      therefore to the Tenant.  Except to the extent otherwise  expressly agreed
      by the  Landlord in  writing,  no  Leasehold  Improvements,  furniture  or
      equipment  shall be removed by the Tenant from the Premises  either during
      or at the  expiration or sooner  termination  of the Term except that:

      (a)   the Tenant shall,  prior to the end of the Term,  remove such of the
            Leasehold  Improvements  and trade  fixtures in the  Premises as the
            Landlord shall require to be removed; and

      (b)   the Tenant may, at the time appointed by the Landlord and subject to
            availability of elevators (if installed in the Building), remove its
            furniture and equipment at the end of the Term,  and also during the
            Term in the  usual and  normal  course of its  business  where  such
            furniture or equipment has become  excess for the Tenant's  purposes
            or the Tenant is substituting therefore new furniture and equipment.

      The Tenant shall,  in the case of every removal,  make good at the expense
      of the Tenant any damage  caused to the Premises by the  installation  and
      removal.  In the  event of the non-  removal  by the end of the  Term,  or
      sooner  termination  of this Lease,  of such trade  fixtures or  Leasehold
      Improvements  required by the  Landlord  of the Tenant to be removed,  the
      Landlord  shall have the option,  in addition to its other  remedies under
      this  Lease,  to declare to the Tenant  that such trade  fixtures  are the
      property of the  Landlord  and the Landlord  upon such a  declaration  may
      dispose of such trade  fixtures and retain any proceeds of  disposition as
      security for the debts,  liabilities and obligations of the Tenant and the
      Tenant  shall be liable to the  Landlord  for any expense  incurred by the
      Landlord.

<PAGE>

4.    For the purpose of this Lease and except as specified in the Lease:

      (a)   the term  "Landlord's  Work" shall mean  finishing the Premises in a
            mariner  and in colours  standard  to the  Building  which,  without
            limiting the generality of the  foregoing,  will include those items
            set out in Schedule F attached hereto.'

      (b)   the  term  "Tenant's  Work"  shall  mean  all  work  other  than the
            Landlord's  Work  required to be done to complete  the  Premises for
            occupancy by the Tenant.  The Tenant's  Work shall not be undertaken
            or commenced by the Tenant until:

            (i)   all permits  necessary  for the  installation  of the Tenant's
                  improvements  and  approval  have been  obtained by the Tenant
                  from applicable  municipal and other  government  departments,
                  prior to the commencement of the  installation by Tenant,  and
                  copies provided to the Landlord;

            (ii)  a  certificate  of insurance has been provided to the Landlord
                  showing that a valid  insurance  policy is in place naming the
                  Landlord as co-insured for minimum  general  liability no less
                  than 2 million dollars; and

            (iii) proper  documentation  has been  provided by the Tenant to the
                  Landlord  verifying  that  provisions  have  been  made by the
                  Tenant for payment in full of all costs of the Tenant's Work.

      (c)   All  improvements  to the  Premises  shall  conform  to the  quality
            standards  of the  Building.  The Tenant  shall use an  architect to
            design  and  prepare  working  drawings  and  specifications  of the
            Tenant's Work and shall submit them for the Landlord's prior written
            approval.

<PAGE>

                 SCHEDULE F - LANDLORD'S WORK AND TENANT'S WORK

Only those items enumerated below as Landlord's Work ("Landlord's Work") will be
provided and installed by the Landlord in the Premises on a "once only" basis at
the Landlord's  expense in accordance  with the Landlord's  choice of materials.
All other work required for the Premises,  including  those items  enumerated as
Tenant's Work will be provided and installed by the Tenant, at the Tenant's sole
cost and expense.  Excepting  the items shown as  Landlord's  Work, it is hereby
agreed that the  Premises are leased on an "as is, where is" basis and there are
no representations or warranties  concerning the Premises or the Building except
as contained herein.

LANDLORD'S WORK

NONE

TENANT'S WORK

1.    All  improvements  to Premises in excess of Landlord's  Work including all
      further electrical and mechanical requirements.

2.    Any changes  desired by the Tenant to the  Landlord's  Work are subject to
      the Landlord's approval and shall be made at the Tenant's expense.

3.    All permits and approvals  necessary for the  installation of the Tenant's
      improvements shall be obtained by the Tenant from applicable municipal and
      other   government   departments,   prior  to  the   commencement  of  the
      installations by the Tenant.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00083-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00083-of-00352.parquet"}]]