Document:

<PAGE>

                                                                    EXHIBIT 10.9

                                     LEASE

THIS LEASE, dated October 1, 1999, is made and entered into by the Landlord and
Tenant named herein who, in consideration of the covenants herein contained,
agree as follows:

ARTICLE 1 - BASIC TERMS, SCHEDULES, DEFINITIONS
-----------------------------------------------

1.   Basic Terms
---  -----------

(A)  (i)  Landlord:                 No. 150 Cathedral Ventures Ltd.

    (ii)  Address of Landlord:      #1300 - 409 Granville Street
                                    Vancouver, BC
                                    V6C 1T2

(B)  (i)  Tenant:                   Onvia.com Channels, Inc.

    (ii)  Head Office of Tenant:    Suite 205 - 1008 Homer Street
                                    Vancouver, B.C.
                                    V6B 2X1

(C)  Address of Premises:           330 - 948 Homer Street
                                    Vancouver, BC

(D)  Floor Area of Premises:        5,271 square feet (more or less) located on
     the third floor of the Building shown on Schedule "A" including the
     leasehold improvements referenced in Schedule "B".

(E)  (i)  Term:                     5 years

    (ii)  Renewal Terms:            Three (of three years each)

   (iii)  Commencement Date:        August 1, 1999 or upon completion of
                                    Landlord's work, whichever last occurs.

    (iv)  Occupation Date:          Upon completion of Landlord's work. Landlord
                                    to use best efforts to complete no later
                                    than July 17, 1999.

(F)  Minimum Rent: (exclusive of GST)

<PAGE>

<TABLE>
<CAPTION>
Lease Years                Sq. Ft       Rate $/Sq. Ft.       $/Month        $/Annum
-----------              -----------  ------------------  -------------  -------------
<S>                      <C>          <C>                 <C>            <C>
Aug. 1/99, Feb. 29/00          3,696              $16.00      $4,928.00     $34,496.00
Mar. 1/99, Jul. 31/00          4,371              $16.00      $5,828.00     $29,140.00
2                              5,271              $16.00      $7,028.00     $84,336.00
3                              5,271              $16.00      $7,028.00     $84,336.00
4                              5,271              $16.00      $7,028.00     $84,336.00
5                              5,271              $16.00      $7,028.00     $84,336.00
</TABLE>

          Notwithstanding the above, the Landlord and the Tenant acknowledge and
     agree that as contemplated by Section 4.2 hereof:

     2.   the Tenant is not to pay any Minimum Rent for the first two months of
          the Term; and

     3.   the Tenant has paid Landlord a deposit of $12,792.92 which is to be
          applied on account of the third months Minimum Rent ($4,928.00) and
          the last months Minimum Rent ($7,028.00) and applicable GST.

(G)  Permitted Use of Premises:     General office use including computer
     software development and ancillary offices and for no other use without the
     express written consent of the Landlord.

(H)  Legal Description of Lands:    Parcel B of 5 & 6, Lot A of 6 & 7 of 39 to
     58, Block 76, D.L. 541, Plan 4544, Vancouver District, Vancouver, B.C.

The foregoing Basic Terms are hereby approved by the parties and each reference
in this Lease to any of the Basic Terms shall be construed to include the
provisions set forth above as well as all of the additional terms and conditions
of the applicable sections of this Lease where such Basic Terms are more fully
set forth.

1.2  Schedules
     ---------

     The schedules to this Lease are incorporated into and form an integral part
     of this Lease.

1.3  Definitions
     -----------

     In this Lease, the words, phrases and expressions set forth in Schedule "C"
     are used with the meanings defined therein.

ARTICLE II - GRANT OF LEASE
---------------------------

2.1  Demise
     ------

     The Landlord, being registered as owner of the Lands legally described in
     Section 1.1(h),

                                       2
<PAGE>

     subject, however, to such mortgages and encumbrances as are registered
     against title thereto as of the date hereof, does hereby lease to the
     Tenant, for the Term and upon and subject to covenants and conditions
     hereinafter expressed, the Premises.

2.2  The Landlord in addition to the foregoing does hereby grant to the Tenant
     the exclusive use during the Term of two parking space located on the Lands
     at no cost to the Tenant.

2.3  The Tenant and its employees and all persons lawfully requiring
     communication with them shall have and are hereby granted the full, free
     and uninterrupted non-exclusive right, licence and privilege at all times
     and from time to time during the normal business hours of the Tenant to
     enter, pass and repass over those portions of Lands and the Buildings which
     are not rented to or designated for rent for the purposes of access to and
     from the Premises, subject to all rules, regulations and bylaws of all
     governmental authorities having jurisdiction and subject to the reasonable
     rules and regulations imposed by the Landlord from time to time.

ARTICLE III - TERM, COMMENCEMENT, RENEWAL
-----------------------------------------

3.1  Term
     ----

     The Term of this Lease shall be for the period set out in Section
     1.1(e)(i), beginning on the Commencement Date.

3.2  Option to Renew
     ---------------

(a)  If the Tenant duly and regularly pays all rent and other sums hereunder to
     be paid and performs each and every of the covenants, conditions and
     provisions herein contained the Landlord shall, at the expiration of the
     Term, upon request in writing by the Tenant delivered to the Landlord not
     less than six (6) months prior to the expiration of the Term, grant to the
     Tenant, a renewal lease of the Premises for a further term of three (3)
     years from the expiration of each Term to be legally documented at the
     expense of the Tenant upon the same terms and conditions as contained in
     this Lease except as to the inclusion of Section 12.4 hereof and except as
     to the amount of Minimum Rent which shall be equal to the Fair Market Rent
     for the Premises including without limitation to the use of the Parking
     Space at the commencement of the Renewal Term as agreed upon by the
     Landlord and the Tenant, but in no event less than the rate in the
     preceding term.

(b)  In the event that the parties are unable to agree upon the Fair Market Rent
     at least thirty (30) days prior to the commencement of the Renewal Term,
     the matter shall be determined by arbitration in accordance with the
     provisions of the Commercial Arbitration Act of British Columbia (or any
     successor statute) by a single arbitrator.

(c)  Notwithstanding the provisions of paragraph (a) the Tenant will only be
     entitled to a maximum of three renewal options of three years each.

                                       3
<PAGE>

ARTICLE IV - RENT
-----------------

4.1  Minimum Rent
     ------------

     Subject to the provisions of Section 4.2 the Tenant shall pay to the
     Landlord in and for each Lease Year, Minimum Rent in the amount per annum
     set out in Section 1.1(f) for the respective Lease Year, by equal
     consecutive monthly installments in the amount set out in Section 1.1(f)
     for such Lease Year plus the applicable Goods and Services Tax.  The
     parties confirm that the Minimum Rent as set out in Section 1.1(f) is based
     in part on the Premises containing an estimated 5,271 square feet of
     rentable floor area.  The parties agree that the final rentable floor area
     of the Premises shall be determined as per the American national Standard
     used by the Building Owners and Managers Association International ("BOMA")
     in effect at the date of this Lease and, the Minimum Rent shall be adjusted
     upwards or downwards as the case may be to reflect such final measurements
     by no later than August 1st, 2000.

4.2  Payment of Minimum Rent
     -----------------------

     The Landlord grants a two (2) month abatement of Minimum Rent from the
     beginning of the Lease Term.  The first monthly installment of Minimum Rent
     shall be paid on or before two (2) months after the Commencement Date and
     subsequent installments of Minimum Rent shall be paid strictly in advance
     on the first day of each and every succeeding month throughout the Term
     including the Goods and Services Tax.  Notwithstanding the foregoing, the
     Tenant will be responsible for its Proportionate Share of Property Taxes
     and Operating Costs during the abatement period.  The Landlord and the
     Tenant further agree that:

(c)  any portion of any leasehold improvement allowance not spent by the Tenant
     will be credited on account of Minimum Rent; and

(d)  the Landlord has received the sum of $12,792.92 from the Tenant which will
     be applied towards the payment of the third and final months Minimum Rent
     and applicable GST.

4.3  Pro Rata Adjustment of Rent
     ---------------------------

     All rent shall be deemed to accrue from day to day, and if for any reason
     it shall become necessary to calculate rent for irregular periods of less
     than one (1) year or one (1) month, as the case may be, and appropriate pro
     rata adjustment shall be made in order to calculate rent for such irregular
     period.

4.4  Payments Generally
     ------------------

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

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

(b)  made when due hereunder, without prior demand therefor and without any set-
     off, compensation or deduction whatsoever, at the address of the Landlord
     set forth in

                                       4
<PAGE>

     Section 1.1 (a)(ii) or such other place as the Landlord may designate from
     time to time to the Tenant;

(c)  applied towards amounts then outstanding hereunder, in such manner as the
     Landlord may, in its discretion, see fit, and without restricting the
     generality of the foregoing, no acceptance by the Landlord of any amount
     less than the full sum which is due and owing by the Tenant shall
     constitute an accord and satisfaction or oblige the Landlord to accept in
     full settlement anything less than the full amount owing and outstanding at
     any time;

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

(e)  subject to an overdue charge if any such payment is not made when due,
     which charge shall be Additional Rent equal to twelve (12%) percent per
     annum of the overdue amount both before and after judgement payable with
     the next monthly installment of Minimum Rent, all without prejudice to any
     other right or remedy of the Landlord.

ARTICLE V - ADDITIONAL RENT
---------------------------

5.1  Intent of Lease
     ---------------

     It is the intent of the parties and agreed that this Lease shall be
     absolutely net to the Landlord such that, without limiting the generality
     of the foregoing, the Tenant shall pay for its own account, and without any
     variation, set-off or deduction, all amounts, charges, cost, duties,
     expenses, fees rates, sums, taxes and increases therein any way relating to
     the Premises.

5.2  Additional Rent
     ---------------

     Without limiting the generality of the preceding Section, the Tenant shall
     pay as Additional Rent in each Lease Year the aggregate of:

(a)  the Property Taxes;

(b)  the Operating Costs;

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

     to either the Landlord or direct to suppliers as determined from time to
     time by both parties.  Taxes and Operating Costs are based on a
     proportionate share of the building and are estimated to be $6.00 per
     square foot and are to be paid on a monthly basis.

                                       5
<PAGE>

<TABLE>
<CAPTION>
                                               Initial Estimated
                                            -----------------------
     Lease Years               Sq. Ft.              Monthly
----------------------- -------------------- -----------------------
<S>                      <C>                   <C>
Aug. 1/99, Feb. 29/00           3,696              $1,848.00
-----------------------         -----              ---------
Mar. 1/99, Jul. 31/00           4,371              $2,185.50
-----------------------         -----              ---------
2                               5,271              $2,635.50
-----------------------         -----              ---------
3                               5,271              $2,635.50
-----------------------         -----              ---------
4                               5,271              $2,635.50
-----------------------         -----              ---------
5                               5,271              $2,635.50
-----------------------         -----              ---------
</TABLE>

5.3  Estimate of Additional Rent
     ---------------------------

     The Landlord may, in respect of any or all of the items of Additional Rent,
     compute bona fide estimates of the amounts which are anticipated to accrue
     in the next following Lease Year, calendar year or fiscal year, or portion
     thereof, as the Landlord in its discretion may determine is the most
     appropriate period for each or all items of Additional Rent, and the
     Landlord may provide the Tenant with written notice of the amount of any
     such estimate.

5.4  Payment of Additional Rent
     --------------------------

     With respect to any item of Additional Rent which the Landlord elects to
     estimate from time to time, following receipt of the written notice of the
     estimated amount thereof, the Tenant shall pay to the Landlord such amount,
     in equal consecutive monthly installments throughout the applicable period
     with the monthly installments of Minimum Rent.  With respect to any item of
     Additional Rent which the Landlord has not elected to estimate from time to
     time, the Tenant shall pay to the Landlord the amount of such item of
     Additional Rent, determined pursuant to the applicable provisions of this
     Lease, forthwith upon receipt of an invoice therefor.

                                       6
<PAGE>

5.5  Adjustment of Additional Rent
     -----------------------------

     Within ninety (90) days of the end of each Lease Year, calendar year or
     fiscal year, or portion thereof, as the case may be, for which the Landlord
     has estimated any item of Additional Rent, the Landlord shall compute the
     actual amount of such item of Additional Rent, and make available to the
     Tenant for examination an unaudited statement of the gross amount of such
     item of Additional Rent, and the calculation of the Tenant's Proportionate
     Share thereof for each year or portion thereof.  If the actual amount of
     such item of Additional Rent, as set out in any such statement, exceeds the
     aggregate amount of the  installments paid by the Tenant in respect of such
     item, the Tenant shall pay to the Landlord the amount of the excess within
     fifteen (15) days of the receipt of such statement.  If the contrary is the
     case, any such statement shall be accompanied by a refund to the Tenant of
     any such overpayment without interest, provided that the Landlord may first
     deduct from such refund any rent or other sum which is then owing by the
     Tenant or in arrears. The Tenant may audit, if required, the Additional
     Rent within 30 days after it has been given unaudited statements by the
     Landlord.  The cost of such audit will be for the Tenant's account unless
     the audit shows errors in excess of 5% of the total, in which case the cost
     will be for the Landlord's account.

5.6  Review of Additional Rent
     -------------------------

     No party hereto may claim a readjustment in respect of any item of
     Additional Rent whether paid or payable in installments or otherwise, if
     based on any error of estimation, allocation, calculation or computation
     thereof, unless claims in writing prior to the expiration of one (1) year
     from the conclusion of the period in respect of which such item of
     Additional Rent accrued.

ARTICLE VI - TAXES
------------------

6.1  Tenant's Taxes
     --------------

     The Tenant shall pay promptly when due; all business, sales, machinery,
     equipment and all other taxes, assessments, charges and rates, as well as
     any permit or license fees, attributable to the Premises or the property,
     business, sales or income of the Tenant in respect of the Premises.

6.2  Payment of Property Taxes
     -------------------------

     The Tenant shall pay to the Landlord as Additional Rent the Tenant's
     Proportionate Share of Property Taxes.

6.3  Increases in Property Taxes
     ---------------------------

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

ARTICLE VII - OPERATING COSTS
-----------------------------

                                       7
<PAGE>

7.1  Payment of Operating Costs
     --------------------------

     The Tenant shall pay to the Landlord as Additional Rent the Tenant's
     Proportionate Share of the Operating Costs.

ARTICLE VIII - UTILITIES
------------------------

8.1  Tenant's Utilities
     ------------------

     The Landlord shall be responsible for heating the Premises and for the
     supply of all utilities thereto and the Tenant shall pay all rates,
     charges, costs and expenses as may be assessed or levied and at the rates
     so assessed or levied by all suppliers of electricity, heating, air
     conditioning or other utilities to the Premises.

ARTICLE IX - INSURANCE
----------------------

9.1  Tenant's Insurance
     ------------------

(a)  The Tenant shall, during the whole of the Term and during such other time
     as the Tenant occupies the Premises, take out and maintain the following
     Insurance, at the Tenant's sole expense, in such form and with such
     companies as the Landlord may reasonably approve:

(i)  comprehensive general liability insurance applying to all operations of the
     Tenant and against claims for bodily injury, including death, and property
     damage or loss arising out of the use or occupation of the Premises, or the
     Tenant's business on or about the Premises; such insurance shall include
     the Landlord as an additional named  insured and indemnify and protect both
     the Tenant and the Landlord and shall contain a "cross liability" or
     "severability of interests" clause so that the Landlord and the Tenant may
     be insured in the same manner and to the same extent as if individual
     policies had been issued to each, and shall be for the amount of not less
     than two million ($2,000,000) dollars combined single limit or such other
     amount as may be reasonably required by the Landlord from time to time;
     such comprehensive general liability insurance shall, for the Tenant's
     benefit only, include contractual liability insurance in a form and of a
     nature broad enough to insure the obligations imposed upon the Tenant under
     the terms of this Lease; and

(ii) "all risks" insurance upon its merchandise, stock-in-rade, furniture,
     fixtures and improvements, including leasehold improvements, and upon all
     other property in the Premises owned by the Tenant or for which the Tenant
     is legally liable.

                                       8
<PAGE>

(b)    The policies of insurance referred to above shall contain the following:

(ii)   provisions that the Landlord is protected notwithstanding any act,
       neglect or misrepresentation of the Tenant which might otherwise result
       in the avoidance of a claim under such policies and that such policies
       shall not be affected or invalidated by any act, omission or negligence
       of any third party which is not within the knowledge or control of the
       insured(s);

(iii)  provisions that such policies and the coverage evidenced thereby shall be
       primary and non-contributing with respect to any policies carried by the
       Landlord and that any coverage carried by the Landlord shall be excess
       coverage;

(iv)   all property insurance referred to above shall provide for waiver of the
       Insurer's rights of subrogation as against the Landlord;

(v)    provisions that such policies of insurance shall not be cancelled without
       the insurer providing the Landlord with thirty (30) days written notice
       stating when such cancellation shall be effective.

(c)  evidence satisfactory to the Landlord of such policies of insurance shall
     be provided to the Landlord upon request.

(d)  The Tenant shall at the written request of the Landlord maintain such other
     insurance in such amounts and in such sums as the Landlord may reasonably
     determine from time to time the necessity of which arises during the Term
     as a result of a change in equipment use or business activity on the part
     of the Tenant not contemplated at the commencement of the Term.

9.2  Increase in Rates
     -----------------

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

ARTICLE X - USE AND OCCUPATION
------------------------------

10.1 Use
     ---

     The Premises shall be used for the purposes set forth in Section 1.1(g) and
     for no other purpose.

                                       9
<PAGE>

10.2 Compliance with Laws
     --------------------

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

10.3 Nuisance
     --------

     The Tenant shall not do or permit to be done or omit doing anything which
     could damage the Premises, reasonable wear and tear excepted, or which
     shall or might result in any nuisance in or about the Premises, whether to
     the Landlord, any tenant of the Premises, or any other party, the whole as
     determined by the Landlord, acting reasonably.  In any of the foregoing
     events, the Tenant shall forthwith remedy the same and if such thing or
     condition shall not be so remedied, the Landlord may, after such notice if
     any as the Landlord may reasonably deem appropriate in the circumstances,
     correct such situation at the expense of the Tenant and the Tenant shall
     pay such expense to the Landlord as Additional Rent.

ARTICLE XI - CLEANING, REPAIR
-----------------------------

11.1 Cleaning
     --------

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

(b)  The Tenant shall pay for its own janitorial service, cleaning or debris,
     removal of garbage and such other costs as may be incurred in cleaning in
     accordance with this Article.

(c)  In the event the Tenant fails to clean in accordance with this Article,
     upon reasonable notice to do so from the Landlord, the Landlord may clean
     the same and the Tenant shall pay to the Landlord as Additional Rent the
     cost thereof.

11.2 Tenant's Repairs
     ----------------

(a)  The Tenant shall keep and maintain the Premises and any improvements now or
     hereafter erected or installed therein in good order and repair; reasonable
     wear and tear and repairs for which the Landlord is responsible excepted.

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

                                       10
<PAGE>

11.3 View Repairs
     ------------

     The Landlord may, on not less than 24 hours written notice, enter the
     Premises at any reasonable time between 9:00 a.m. and 5:00 o'clock p.m.
     Monday through Friday and at any time during any emergency to view  the
     state of repair and the Tenant shall repair according to notice in writing
     from the Landlord to do so, subject to the exceptions contained in this
     Article.

11.4 Landlord may Repair
     -------------------

     If the Tenant fails to repair as required herein and according to notice
     from the Landlord within fourteen (14) days of receipt thereof, or such
     longer period as may be reasonable in the circumstances, the Landlord may
     make such repairs without liability to the Tenant for any loss or damage
     that may occur to the Tenant's merchandise, fixtures or other property or
     to the Tenant's business by any reason thereof, and upon completion thereof
     the Tenant shall pay as Additional Rent the Landlord's cost for making such
     repairs and provided the Landlord does not disturb the Tenant's use and
     occupation of the Premises as contemplated hereby.

11.5 Taking of Possession
     --------------------

     The taking of possession of the Premises by the Tenant shall be conclusive
     evidence against the Tenant, that at the time of taking possession, the
     Premises were in good and fully satisfactory order and condition save and
     except as may be specified in writing by the Tenant to the Landlord at the
     time of taking possession.  Notwithstanding the foregoing, the taking of
     possession of the Premises by the Tenant for the purpose of undertaking the
     Tenant's improvements in conjunction with or separately from the Landlord's
     undertaking of the Landlord's Work as contemplated under Section 12.4 and
     Schedule "B" shall not be deemed or construed as the Tenant's acceptance
     that the Premises were in good and fully satisfactory order and condition
     at that time.

ARTICLE XII - ALTERATIONS, FIXTURES
-----------------------------------

12.1 Tenant's Alterations
     --------------------

(a)  The Tenant shall not make or cause to be made any alterations, additions or
     improvements or erect or cause to be erected any partitions or install or
     cause to be installed any trade fixtures, exterior signs, floor covering,
     interior or exterior lighting, plumbing fixtures, apparatus for air-
     conditioning, cooling, heating, illuminating, refrigerating, or ventilating
     the Premises, shades, awnings, exterior decorations or make any changes to
     the Premises without first obtaining the Landlord's written approval
     thereto, which approval shall not be unreasonably withheld.

(b)  When seeking the approval of the Landlord as required by this article, the
     Tenant shall present to the Landlord plans and specifications for the
     proposed work.

(c)  The Tenant shall be responsible for the cost of clearing any builder's lien
     that may be filed with respect to improvements undertaken by the Tenant.

(d)  The Landlord shall respond to any request for approval by the Tenant
     hereunder within 10 days of receipt of being provided with plans and
     specifications.

                                       11
<PAGE>

12.2 Removal of Fixtures
     -------------------

(a)  So long as the Tenant is not in default hereunder at the expiration of the
     Term, the Tenant shall then have the right to remove its trade fixtures
     from the Premises but shall make good any damage caused to the Premises
     resulting from the installation or removal thereof.

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

(c)  Should the Tenant abandon the Premises or should this Lease be terminated
     before the proper expiration of the Term due to a default on the part of
     the Tenant then, ten days immediately following such default by the Tenant,
     all alterations, additions, and improvements made to the Premises but
     specifically excluding all trade fixtures and furnishings of the Tenant
     (whether or not attached in any manner to the Premises) shall, except to
     the extent the Landlord requires the removal thereof, become and be deeded
     to be the property of the Landlord, without indemnity to the Tenant and as
     additional liquidated damages in respect of such default but without
     prejudice to any other right or remedy of the Landlord.

(d)  Notwithstanding that any alterations, additions, improvements or fixtures
     are or may become the property of the Landlord, the Tenant shall forthwith
     remove all or part of the same and shall make good any damage caused to the
     Premises resulting from the installation or removal thereof, all at the
     Tenant's expense, should the Landlord so require by notice to the Tenant.

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

12.3 Landlord's Alterations
     ----------------------

     Provided that the Landlord does not disturb the Tenants right to quiet
     enjoyment, the Landlord may make any changes or additions to the apparatus,
     appliances, conduits, ducts, equipment, pipes or structures of any kind in
     the Premises where necessary to service premises on adjoining floors of the
     Building or other parts of the Premises.

12.4 Landlord's Work
     ---------------

     The Landlord will, upon approval of the lease by both Landlord and Tenant,
     provide the premises to the Tenant in a condition sufficient for the
     Tenant's contractor to commence construction of their Tenant improvements.
     The Landlord shall have completed, at its cost, the Base Building upgrades
     as referenced in Schedule "B" by the commencement date, unless as otherwise
     may be agreed in writing.

                                       12
<PAGE>

ARTICLE XIII - SUBSTANTIAL DAMAGE AND DESTRUCTION
-------------------------------------------------

13.1 Abatement
     ---------

     Subject to the provisions of Section 13.2, if during the Term the Premises
     shall be damaged or destroyed by any cause whatsoever such that the
     Premises are rendered unfit for occupancy by the Tenant, the Rent hereby
     reserved shall abate but only to the extent that the Premises are so
     rendered unfit for occupancy and only during the period while the Premises
     remain in such unfit condition.

13.2 Substantial Damage or Destruction
     ---------------------------------

     In the event of Substantial Damage or Destruction of the Premises, the
     Landlord may within sixty (60) days after such damage or destruction and on
     giving thirty (30) days written notice to the Tenant declare this Lease
     terminated forthwith, and in such event the Term shall be deemed to have
     expired and the Tenant shall deliver up possession of the Premises
     accordingly. Rent shall be apportioned and shall be payable, subject to any
     right of abatement under Section 13.1, up to the date of termination stated
     in such notice and the Tenant shall be entitled to be repaid by the
     Landlord any rent paid in advance and unearned or an appropriate portion
     thereof.  "Substantial Damage or Destruction" means such damage as, in the
     opinion of the Landlord's architect acting reasonably,  requires
     substantial alteration or reconstruction of the Premises or such damage to
     the Premises as cannot be repaired within a period of one hundred and
     eighty (180) days from the time of such damage to the state wherein the
     Tenant could use substantially all of the Premises for its business.

ARTICLE XIV - ASSIGNMENT, SUBLETTING, SALE
------------------------------------------

14.1 Assignment and Subletting
     -------------------------

(a)  The Tenant shall not assign this Lease in whole or in part, nor sublet all
     or any part of the Premises, nor grant any license or part with possession
     of the Premises or transfer any other right or interest under this Lease,
     without the prior written consent of the Landlord in each instance, which
     consent shall not be unreasonably withheld, so long as the proposed
     assignment or sublease complies with the provisions of this Article.
     Notwithstanding the foregoing, no consent of the Landlord shall be required
     in the event that the Tenant assigns or sublets the whole or any portion of
     the demised premises to a corporate entity controlled by,  or affiliated to
     the Tenant or to a corporation which controls the Tenant.

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

(c)  If the Premises or any part thereof are sublet or occupied by anyone other
     than the Tenant, then if and when the Tenant is in default in the payment
     of any of the Rent reserved hereunder, the Landlord may collect rent
     payable to the Tenant by such

                                       13
<PAGE>

     person(s) directly and apply it to the outstanding unpaid Rent reserved
     hereby.

(d)  No assignment shall be made or proposed other than to persons, firms,
     partnerships, or bodies corporate who undertake in favour of the Landlord
     to perform and observe the obligations of the Tenant hereunder by entering
     into an assumption agreement directly with the Landlord.

(e)  The prohibition against assigning or subletting without the consent
     required by this Article shall be construed to include a prohibition
     against any assignment or sublease by operation of law.

(f)  The consent by the Landlord to any assignment or sublease shall not
     constitute a waiver of the necessity of such consent to any subsequent
     assignment or sublease.

14.2 Subordination
     -------------

     This Lease and the Tenant's rights hereunder shall be automatically
     subordinate to any mortgage or mortgages, or encumbrances resulting from
     any other method of financing or refinancing, now or hereafter in force
     against the Premises or any part thereof, as now or hereafter constituted,
     and to all advances made or hereafter to be made upon the security hereof
     provided that any such mortgagee agrees with the Tenant in writing that so
     long as the Tenant is not in default hereunder, it will not disturb the
     Tenants use and occupancy of the Premises under this Lease or any renewal
     hereof.  Upon the request of the Landlord, the Tenant shall execute such
     documentation as may be required by the Landlord in order to confirm and
     evidence such subordination; provided however, it being understood that any
     such subordination by the Tenant shall not impair the Tenant's right to
     continue in possession of the Premises so demised and in confirmation of
     the foregoing, the Landlord upon receipt of a written request from the
     Tenant agrees to enter into a non-disturbance agreement with the Tenant and
     the mortgagee of the Landlord.  Further, the Landlord agrees that the
     Tenant at its own expense may register a Notice of Lease against title to
     the Premises.

14.3 Sale by Landlord
     ----------------

     In the event of a sale by the Landlord of any portion or all its interest
     in the Premises, the Landlord shall thereafter be entirely relieved of the
     performance of all terms, covenants and obligations thereafter to be
     performed by the Landlord under this Lease, to the extent of the interest
     or portion so sold or transferred and it shall be deemed and construed
     without further agreement between the parties that the purchaser or
     transferee, as the case may be, has assumed and agreed to carry out any and
     all covenants of the Landlord hereunder.

                                       14
<PAGE>

ARTICLE XV - INDEMNITY, LIENS
-----------------------------

15.1 Tenant's Indemnity
     ------------------

     The Tenant shall at all times during the Term, indemnify and save harmless
     the Landlord of and from all loss and damage and all actions, claims,
     costs, demands, expenses, fines, liabilities and suits of any nature
     whatsoever for which the Landlord shall or may become liable, incur or
     suffer by reason of a breach, violation or non-performance by the Tenant of
     any covenant, term or provision hereof or by reason of any builders' or
     other liens for any work done or materials provided or services rendered
     for alterations, improvements or repairs to the Premises, made by or on
     behalf of the Tenant, or by reason of any injury occasioned to or suffered
     by any person or damage to any property, by reason of any wrongful act or
     omission, default or negligence on the part of the Tenant or any of its
     agents, concessionaires, contractors, customers, employees, invitees or
     licenses in or about the Premises not caused by the negligence or wilful
     neglect of the Landlord or any of its employees or agents or invitees.

15.2 Personal Injury and Property Damage
     -----------------------------------

     The Landlord shall not be liable or responsible for:

(a)  any personal injury or consequential damage of any nature whatsoever,
     however caused, that may be suffered or sustained by the Tenant or by any
     other person who may be upon the Premises; or

(b)  any loss or damage of any nature whatsoever, howsoever caused, to the
     Premises, any property belonging to the Tenant or to any person while such
     property is in or about the Premises.

     Provided the same is not caused by the negligence or wilful neglect of the
     Landlord or any of its employees or agents or invitees.

15.3 Liens
     -----

     The Tenant shall, immediately upon demand by the Landlord, remove or cause
     to be removed, and thereafter institute and diligently prosecute any action
     pertinent thereto, any builder's or other lien or claim of lien referenced
     in Section 15.1 hereof noted or filed against or otherwise constituting an
     encumbrance on the Landlord's title to the Lands.  Without limiting the
     foregoing obligations of the Tenant, the Landlord may cause the same to be
     removed, in which case the Tenant shall pay to the Landlord as Additional
     Rent the cost thereof, including the Landlord's complete legal costs.

15.4 Landlord's Indemnity
     --------------------

     The Landlord shall at all times during the Term indemnify and save harmless
     the Tenant and its directors, officers, employees, agents and invitees of
     and, from all loss and damage and all actions, claims, costs, demands,
     expenses, fines, liabilities and suits of any nature whatsoever for which
     any one or more of the Tenant and its directors, officers, employees,
     agents and invitees

                                       15
<PAGE>

     shall or may become liable, incur or suffer by reason of:

(a)  a breach, violation or non-performance of any of the Landlord's covenants
     hereunder; or

(b)  any injury occasioned to or suffered by any person or damage to any
     property, by reason of any wrongful act or omission, defaut or negligence
     by or on the part of the Landlordor any of its agents, concessionaires,
     contractors, customers, employees, invitees or licenses in or about the
     Lands and/or Building;

     not caused by Tenant or any of its directors, officers, emplyoees, agents
     or invitees.

                                       16
<PAGE>

ARTICLE XVI - DEFAULT, REMEDIES, TERMINATION
--------------------------------------------

16.1 Default
     -------

     If and whenever:

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

(b)  the Tenant's leasehold interest hereunder, or any goods, chattels or
     equipment of the Tenant located in the Premises shall be validly taken or
     seized after due process in execution or attachment, or if any writ of
     execution shall issue against the Tenant and not be discharged within
     twenty one (21) days of its issuance, or the Tenant shall become insolvent
     or commit an act of bankruptcy or become bankrupt or take the benefit of
     any Act that may be in force for bankrupt or insolvent debtors or become
     involved in voluntary or involuntary winding up, dissolution or liquidation
     proceedings, or if a receiver or receiver and manager shall be appointed
     for the affairs, business, property or revenues of the Tenant; or

(c)  The Tenant shall fail to commence, diligently pursue and complete the
     Tenant's work to be performed pursuant to any agreement to lease pertaining
     to the Premises or other agreement signed by the parties or fail to open
     for business when required by the provisions of the Lease, or vacate or
     abandon the Premises or fail or cease to operate pursuant to the provisions
     of this Lease or otherwise cease to conduct business from the Premises, or
     use or permit or suffer the use of the Premises for any purposes other than
     as allowed pursuant to this Lease, or fail to remedy or rectify any act or
     omission hereunder, or move or commence, attempt or threaten to move its
     goods, chattels and equipment out of the Premises other than in the routine
     and ordinary course of business; or

(d)  the Tenant commences a wholesale removal of trade fixtures, goods or
     chattels of the Tenant sufficient to negate the Landlord's remedy of
     distraint for unpaid rent; or

(e)  the Premises become and remain vacant for a period of five (5) consecutive
     days other than a holiday vacation office closure of which the Landlord has
     been given prior notice or the Premises are used by any persons other than
     such as are entitled to use them hereunder; or

(f)  The Tenant assigns, transfers, encumbers, sublets or permits the occupation
     or use or the parting with or sharing possession of all or any part of the
     Premises by anyone

                                       17
<PAGE>

     except in a manner permitted by this Lease; or

(g)  re-entry is permitted under any other term of this Lease; or

(h)  the Tenant fails to observe, perform or keep each and every of the
     covenants, agreements, stipulations, obligations, conditions and other
     provisions of this Lease to be observed, performed and kept by the Tenant
     and persists in such default, in the case of monetary payments, beyond the
     ten (10) day period stipulated in paragraph (a) aforesaid or, in the case
     of any other default, after ten (10) days written notice from the Landlord
     requiring that the Tenant remedy, correct or comply or, in the case of any
     such default which would reasonably require more than ten (10) days to
     rectify, unless the Tenant shall commence rectification within the said ten
     (10) day notice period and thereafter promptly and diligently and
     continuously proceed with the rectification of any such default;

     then, and in each of such cases, and at the option of the Landlord and in
     addition to any other rights or remedies the Landlord may have pursuant to
     this Lease or at law, the Landlord may immediately re-enter upon the
     Premises and may expel all occupants thereof and remove all property from
     the Premises and such property may be removed and sold or disposed of by
     the Landlord in such manner as it deems advisable, including by private
     sale, or may be stored in a public warehouse or elsewhere at the cost and
     for the account of the Tenant, all without service of notice or resort to
     legal process and without the Landlord being considered guilty of trespass
     or becoming liable for any loss or damage which may be occasioned thereby.
     If the Landlord elects to re-enter the Premises as herein provided, or if
     it takes possession pursuant to the legal proceedings or pursuant to any
     notice provided for by law, it may either terminate this Lease or it may
     from time to time without terminating this Lease, make such alterations and
     repairs as are necessary in order to relet the Premises, or any part
     thereof, for such term or terms (which may be for a term extending beyond
     the Term) and at such rent and upon such other terms, covenants and
     conditions as the Landlord in its sole discretion considers advisable.

16.2 Landlord may Perform
     --------------------

     If the Tenant shall fail to observe, perform or keep any of the provisions
     of this Lease to be observed, performed and kept by the Tenant, the
     Landlord may, but shall not be obliged to, at its discretion and without
     prejudice to any other right, claim, or action it may have, rectify the
     default of the Tenant, whether or not performance by the Landlord on behalf
     of the Tenant is otherwise expressly referred to in the applicable Section
     of this Lease.  For such purpose the Landlord may make any payment or do or
     cause to be done, such things as may be required including, without
     limiting the generality of the foregoing, entry upon the Premises.  Any
     such performance by or at the behest of the Landlord shall be at the
     expense of the Tenant and the Tenant shall pay to the Landlord as
     Additional Rent the cost thereof.

16.3 Distress
     --------

     If and whenever the Tenant shall be in default in the payment of any money,
     whether hereby expressly reserved or deemed as rent, or any part thereof,
     the Landlord may, without notice or any form of legal process whatever,
     enter upon the Premises and seize, remove and sell by

                                       18
<PAGE>

     judicial or formal process or by private sale the Tenant's goods, chattels
     and equipment at any place to which the Tenant or any other person may have
     removed them, in the same manner as if they had remained and been
     distrained upon the Premises, all notwithstanding any rule of law or equity
     to the contrary, and the Tenant hereby waives and renounces the benefit of
     any present or future statute or law limiting the Landlord's right of
     distress or sale.

16.4 Costs and Interest
     ------------------

     All costs, expenses and expenditures of the Landlord, incurred upon any
     default by the Tenant hereunder, including, without limitation, the legal
     costs incurred by the Landlord on an indemnification basis as between
     solicitor and his own client shall, forthwith on demand, be paid by the
     Tenant to the Landlord as Additional Rent.

     All rent and other sums due to the Landlord pursuant to the terms of this
     Lease shall be paid by the Tenant promptly when due, and if not so paid,
     shall bear interest from their respective due dates at the rate of twelve
     (12) percent per annum, both before and after default, demand and
     judgement.

                                       19
<PAGE>

16.5 Vacate Upon Termination, Survival
     ---------------------------------

     At the termination of this Lease, whether by affluxion of time or
     otherwise, the Tenant shall vacate and deliver up possession to the Tenant,
     subject to the exceptions from the Tenant's obligation to repair and
     subject to the Tenant's rights and obligations in respect of removal and
     the Tenant shall thereupon surrender all keys to the Premises to the
     Landlord at the place then fixed for payment of rent and shall inform the
     Landlord of all combinations on locks, safes and vaults, if any, in the
     Premises.  The indemnity agreements contained in this Lease shall survive
     the termination of this Lease.

16.6 Additional Rights on Re-Entry
     -----------------------------

     If the Landlord shall re-enter the Premises or terminate this Lease, then:

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

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

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

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

(ii) rent and all other amounts payable hereunder up to the time of re-entry or
     to termination, whichever shall be the later; and

(iii) such reasonable expenses as the Landlord may incur or has incurred in
      connection with the re-entering, terminating, reletting, collecting sums
      due or payable by the Tenant, realizing upon assets seized, including
      without limitation brokerage, legal fees and disbursements on an
      indemnification basis as between a solicitor and his own client, and the
      expenses of keeping the Premises in good order, repairing the same and
      preparing them for reletting; and

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

(A)  an amount determined by reducing to present worth at an assumed interest
     rate of twelve (12) percent per annum all Minimum Rent and Additional rent
     to become payable during the period which would have

                                       20
<PAGE>

     constituted the unexpired portion of the Term, such determination to be
     made by the Landlord, who may make reasonable estimates of when any such
     other amounts would have become payable and may make such other assumptions
     or fact as may be reasonable in the circumstances; or

                                       21
<PAGE>

(B)  an amount equal to accelerated

(i)  Minimum Rent, plus

(ii) Additional Rent,

     For a period of six (6) months; or

(C)  such other amount as may be claimed by the Landlord according to law.

16.7 No Waiver
     ---------

     No provision of this Lease shall be deemed to have been waived by the
     Landlord unless a written waiver from the Landlord has first been obtained
     and, without limiting the generality of the foregoing, no acceptance of
     rent subsequent to any default and no condoning, excusing or overlooking by
     the Landlord on previous occasions of any default or any earlier written
     waiver shall be taken to operate as a waiver by the Landlord or in any way
     to defeat or affect the rights and remedies of the Landlord.

16.8 Remedies Cumulative
     -------------------

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

16.9 Holding Over
     ------------

     If the Tenant continues to occupy the Premises with the written consent of
     the Landlord after the expiration or other termination of the Term, then,
     without any further written agreement, the Tenant shall be a Tenant from
     month to month at the aggregate of:

          (a) a minimum monthly rent equal to one hundred and twenty (120)
          percent of the monthly Minimum Rent prevailing immediately prior to
          expiration or termination;

(b)  Additional Rent as herein provided;

     and subject always to all of the other provisions in this Lease insofar as
     the same are applicable to a month to month tenancy and a tenancy from year
     to year shall not be created by implication of law; provided that if the
     Tenant continues to occupy the Premises without the written consent of the
     Landlord at the expiration or other termination of the Term, then the
     Tenant shall be a tenant at will and shall pay to the Landlord, as
     liquidated damages and not as rent, an amount equal to the aggregate set
     forth above during the period of such occupancy, accruing from day to day
     and adjusted pro rata accordingly and subject always to all of the other
     provisions of this Lease insofar as they are applicable to a tenancy at
     sufferance and a tenancy from month to month or from year to year shall not
     be created by implication of law; provided that nothing herein contained
     shall preclude the Landlord from taking action for recovery of possession
     of the Premises.

                                       22
<PAGE>

ARTICLE XVII - RIGHT OF FIRST REFUSAL
-------------------------------------

The Landlord agrees to give the Tenant a Right of First Refusal to lease space
adjacent to the demised premises.  If at any time during the term hereof the
Landlord receives either:

(a)  an acceptable bonafide offer to lease the adjacent space in the Building;
     or

(b)  a conditional acceptance of a bonafide offer to lease the adjacent space in
     the Building.

The Tenant shall have a Right of First Refusal to lease any available space in
the Building and will give to the Landlord written notice within the said period
of five (5) working days that the Right of First Refusal has been exercised.

ARTICLE XVIII - GENERAL PROVISIONS
----------------------------------

18.1 Time
     ----

     Time is of the essence hereof.

18.2 Notices
     -------

     Any Notice required to be given hereunder by any party shall be deemed to
     have been well and sufficiently given if:

(a)  personally delivered to the party to whom it is intended or if such party
     is a corporation to an officer of that corporation; or

(b)  if mailed by prepaid registered mail, to the address of the party to whom
     it is intended hereinafter set forth:

(ii) if to the Tenant:

(A)  to the address of Premises, or

(B)  if the Tenant is a corporation, to its registered office.

     (ii)  if to the Landlord, at the address set forth in Section 1.1(a)(i) or
           to such other address as a party may from time to time direct in
           writing.

     Any Notice delivered as aforesaid shall be deemed to have been received on
     the date of delivery and any Notice mailed shall be deemed to have been
     received seventy two (72) hours after the date it is postmarked.  If normal
     mail service is interrupted after the Notice has been sent the Notice will
     not be deemed to be received until actually received.  In the event normal
     mail service is impaired at the time of sending the Notice, then personal
     delivery only shall be effective.

                                       23
<PAGE>

18.3 Extended Meanings
     -----------------

     "Hereof", "herein", "hereunder" and similar expressions used anywhere in
     this Lease relate to the whole of this Lease and not to any particular
     section or subsection, unless otherwise expressly provided.  The use of the
     neuter singular pronoun to refer to the Landlord or the Tenant is deemed a
     proper reference even though the Landlord or the Tenant is an individual,
     partnership, corporation or group of two or more individuals, partnerships
     or corporations.  The necessary grammatical changes required to make the
     provisions of this Lease apply in the plural sense where there is more than
     one Landlord or Tenant and to either corporations, associations,
     partnerships or individuals, males or females, shall in all instances be
     assumed as though in each case fully expressed.

18.4 No Transfer on Bankruptcy
     -------------------------

     Neither this Lease or any interest of the Tenant herein or any estate
     hereby created will pass or enure to the benefit of any trustee in
     bankruptcy or any receiver or any assignee for the benefit or creditors of
     the Tenant or otherwise by operation of law.

18.5 Successors Bound
     ----------------

     All rights and liabilities herein given to, or imposed upon, the respective
     parties hereto shall extend to and bind the several respective heirs,
     executors, administrators, successors and assigns of the said parties and
     if there is more than one party described in Section 1.1(b), they shall all
     be bound jointly and severally by the terms, covenants and agreements
     herein on the part of the Tenant.  No rights, however shall enure to the
     benefit of any assignee of the Tenant unless the assignment to such
     assignee has been first approved by the Landlord.  All covenants,
     agreements, stipulations, obligations and other provisions of this Lease to
     be observed, performed and kept by the Tenant shall run with the land and
     therefore be enforceable by all successors of the Landlord.

18.6 Headings
     --------

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

18.7 Limitation on Terms and Conditions
     ----------------------------------

     The terms and conditions herein contained together with those contained in
     an Offer to Lease signed by the parties on or before May 25, 1999
     constitute the entire agreement between the parties and shall supersede all
     previous oral or written communications.  In the event there is any
     conflict between any term or condition in this Lease and any term or
     condition in the aforesaid Offer to Lease, the latter shall prevail.

18.8 Tenant's Acceptance
     -------------------

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

                                       24
<PAGE>

ARTICLE XIX - LANDLORD'S COVENANTS

19.1 Quiet Enjoyment
     ---------------

     The Landlord covenants with the Tenant for quiet enjoyment, for so long as
     the Tenant is not in default hereunder, and except for permitted
     interventions described in Sections 11.1(c), 11.3 and 11.4 herein.

19.2 Taxes
     -----

     The Landlord covenants with the Tenant to pay, subject to the provisions of
     this Lease, all Property Taxes that may be charged, levied, rated or
     assessed against the Lands and the Building.  If, in the sole opinion and
     discretion of the Landlord, any Property Taxes are not fair and equitable,
     the Landlord may take all steps necessary to contest or appeal the validity
     thereof, but the Tenant shall not postpone or omit payment of the Tenant's
     Proportionate Share of Property Taxes because of any such appeal or on-
     going contest or otherwise provided that the Landlord shall notify and
     account to the Tenant for any portion to which the Tenant may be entitled
     of any savings, refund or reduction which may be forthcoming as a result of
     such appeal or contest.

19.3 Repair
     ------

     The Landlord covenants with the Tenant to keep the HVAC Facilities and the
     common area and facilities from time to time forming part of the Lands and
     the Buildings in good order and repair.  The Landlord further agrees to
     make Structural Repairs to the Building and repairs necessitated by damage
     from hazards covered by insurance which the Landlord has maintained or is
     obligated to maintain unless such repairs are necessitated by the acts or
     omissions of the Tenant, its agents, employees, invitees or licensees.

19.4 Landlord's Insurance
     --------------------

     The Landlord shall take out and maintain during the Term:

(a)  all risk commercial insurance, including earthquake and flood, to the full
     replacement value of the Building;

(b)  loss of rental income insurance not to exceed one year's net rental
     revenue;

(c)  general liability insurance, including general liability insurance in
     respect of common areas forming part of the Lands and Building in an amount
     of not less than $2,000,000.00 in respect of any injury to or death of one
     or more persons and loss of or damage to property of others; and

(d)  boiler and machinery insurance for direct damage and associated loss of
     rental income.

                                       25
<PAGE>

     The aforesaid insurance shall exclude the exercise of any claim by the
     Landlord's insurer against the Tenant by subrogation and shall provide that
     such insurance may not be terminated, cancelled or materially altered
     unless thirty (30) days' written notice of such termination, cancellation
     or material alteration is given by the insurers to the Tenant.  The
     Landlord shall, upon the request of the Tenant, deliver to the Tenant
     certificates of such insurance, or the original or certified copy of such
     insurance policies.

19.5 Access
     ------

     The Landlord agrees that the Tenant and  its employees shall have access to
     the Premises twenty four (24) hours a day, seven (7) days a week.

                                       26
<PAGE>

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

THE COMMON SEAL OF (the Landlord)
NO. 150 CATHEDRAL VENTURES LTD.
was hereunto affixed in the presence of:

/s/
----------------------------------------
AUTHORIZED SIGNATORY                                                         C/S

/s/
----------------------------------------
AUTHORIZED SIGNATORY

THE COMMON SEAL OF (the Tenant)
ONVIA.com CHANNELS, INC.
was hereunto affixed in the presence of:

/s/
----------------------------------------
AUTHORIZED SIGNATORY                                                         C/S

/s/
----------------------------------------
AUTHORIZED SIGNATORY

                                       27
<PAGE>

                                  SCHEDULE "A"
                                  ------------

Layout of the 5,271 square feet of rentable area on the third floor of the
Building.
(Map or Plan).

Note: Not shown here is two (2) parking spaces in the Building (the "Parking
Space") which are reserved for the exclusive use of the Tenant during the Term
and any Renewal Term of the Lease.

                                       28
<PAGE>

                                  SCHEDULE "B"
                                  ------------

The Landlord shall provide the premises finished, to the extent as set out below
as per the Tenant's space plan including the following and will carry out such
work with all due diligence.  It is understood that some of the Landlord's Work
can only be undertaken contemporaneously with or subsequent to work done by the
Tenant's and that certain work, including correction of deficiencies may be
undertaken or completed subsequent to the commencement date of the lease.

                                LANDLORD'S WORK:

1.    Electrical:  Provide sufficient power to the building for the needs of the
      Tenant.

2.    Paint:       Provide entire interior perimeter walls to be dry-walled and
      sanded ready for painting or to a painted finish.

3.    Flooring:    Floor smooth and ready for Tenant's floor finish.

4.   HVAC:         Install HVAC unit of a size and capacity sufficient for the
     Tenant's intended use by reputable supplier complete with industry standard
     guarantee and maintenance service contract. The Tenant is responsible for
     distribution of the HVAC. Specifications and final design to be provided by
     the Landlord's engineer .

                                 TENANT'S WORK:

The Landlord will complete the premises to a basic "turnkey" position to a
maximum leasehold improvement allowance of $25.00 per square foot of the
rentable area as per the Tenant's space plan including the following: All
additional leasehold improvements will be the responsibility of the Tenant and
must be approved in writing by the Landlord's consultants prior to the start of
construction.

1.    Electrical:       Electrical outlets, light switches and dedicated
      circuits as required in office area as per space plan.

2.    Lighting:         As required as per space plan.

3.    Paint:            All walls and interior doors to be painted to Tenant's
      choice of colour.

4.    Flooring:         Install new carpet or floor covering to Tenant's choice
      of colour.

5.    Partitions:       Partition walls as per space plan.

6.    HVAC:             Distribution of HVAC.

7.    Venetian Blinds:  Building standard blinds.

                                       29
<PAGE>

8.   The Tenant will deliver a layout to the Landlord to construct the Tenant's
     work as above within seven (7) days of acceptance of this Offer to Lease.
     The Landlord will be responsible for any permits required for the
     alterations for the demised premises.

9.   The Tenant will approve the plan and all tenders for the Tenant's Work in
     writing, prior to commencement of construction.

                                       30
<PAGE>

                                  SCHEDULE "C"
                                  ------------

Definitions
-----------

In this Lease, the following words, phrases and expressions are used with the
meanings defined as follows:

1.   Additional Rent means any sum or sums payable by the Tenant to the Landlord
     pursuant to any provision of the Lease, all of which are recoverable by the
     Landlord as rent, other than Minimum Rent.

2.   Building means the building located on the Lands containing an aggregate of
     46,000 square feet (more or less) on four storeys and within which the
     Premises are located and contains the number of square feet of floor area
     set out in Section 1.1(d) (more or less).

3.   Commencement Date means that date set out in Section 1.1(e)(ii).

4.   Fair Market Rent means the amount (exclusive of Additional Rent) that a
     willing tenant and a willing landlord would accept in bonafide
     negotiations, without any additional inducements, for a lease of the
     Premises for a three (3) year term. Fair Market Rent shall be agreed upon
     or determined upon consideration of the most recent leases and market
     renewal leases for comparable buildings and terms that are near the
     Premises. Appropriate adjustments may be made for lease duration,
     inducements and any other special term or condition of such other leases.

5.   "HVAC Facilities" means the heating, ventilating and air conditioning
     system installed by the Landlord on the third floor of the Building for the
     sole and exclusive use of the Tenant in connection with its use and
     occupation of the Premises.

6.   Landlord means the party or parties described in Section 1.1(a) and the
     heirs, executors, administrators, successors and assigns thereof.

7.   Lands means the lands described in Section 1.1(h) upon which the Building
     is located.

8.   Lease Year means, in the case of the first Lease Year, the period beginning
     on Commencement date and terminating twelve (12) months from the last day
     of the calendar month in which the Commencement Date occurs and, in the
     case of each subsequent Lease Year, means each twelve (12) month period
     after the First Lease Year.

9.   Minimum Rent means the rent set out in Section 1.1(f).

10.  Notice includes requests, demands, designations, statements or other
     writings in this Lease required or permitted to be given by the Landlord to
     the Tenant or by the Tenant to the Landlord and all writs, originating
     notices of motion, affidavits and any other ancillary documents in support
     of all legal proceedings.

                                       31
<PAGE>

11.  "Operating Costs" means all of the Landlord's outlays, costs, charges and
     expenses, without duplication which are paid or incurred by the Landlord to
     operate, supervise, repair and maintain the Lands and the Building,
     including without limitation, the cost of supplying electricity, water and
     other utilities not separately metered; cleaning and janitorial services;
     snow and ice removal; striping and repairing parking areas; supervising,
     policing and providing security; painting; planting and landscaping;
     operating and maintaining garbage compaction equipment; the cost of repairs
     and replacements to the Building; insurance premiums; the salaries and
     remuneration (including contributions towards fringe benefits, unemployment
     insurance and similar contributions and worker's compensation assessments)
     of persons and staff employed by the Landlord to provide security,
     management, maintenance, supervisory and operating services for the
     Building. Notwithstanding the foregoing there shall be excluded from the
     Operating Costs, without duplication:

iai  costs properly chargeable to capital account including periodic
     depreciation on the capital cost to the Landlord of the Building;

ibi  costs incurred by the Landlord in selling, leasing, syndicating, financing,
     mortgaging or hypothecating any interest of the Landlord in the Lands or
     the Building; and payments of principal and interest under any mortgages on
     the Building;

ici  corporate, income, profits or excess profit taxes assessed upon the income
     of the Landlord;

idi  Structural repairs;

iei  the costs to repair damage to the extent that insurance proceeds are
     actually recovered by the Landlord in respect thereof;

ifi  depreciation of the machinery, equipment and fixtures of the Landlord
     located anywhere on the Lands or the Building;

igi  replacements required in respect of the HVAC facilities; and

ihi  costs resulting from damage caused by the negligence or wilful act of the
     Landlord or any persons for whom it is responsible in law; and

iii  costs described in the definition of Operating Costs in the preceding
     paragraph which relate solely to the Premises and pursuant to the Lease are
     payable by the Tenant.

1.   Premises means the premises on the third floor of the Building demised by
     the Landlord to the Tenant pursuant to this Lease and containing the square
     footage (more or less) described in Section 1.1(D) hereof.

2.   Proportionate Share, at any point in time, means a fraction the numerator
     of which is the square footage of the Premises being leased at that point
     in time as per Section 1.1(F) and the denominator of which is the square
     footage of all of the rentable premises in the Building, including the
     Premises.

3.   Property taxes means all general, special, local improvement, school and
     water taxes, levies,

                                       32
<PAGE>

     rates and charges from time to time imposed against the Premises, or any
     part thereof, by municipal or other governmental authorities having
     jurisdiction, together with the costs of contesting or negotiating the
     same, but exclusive of income taxes, business place of business taxes,
     estate, inheritance, succession, capital levy or transfer tax. (Should it
     be found that due to changes in the method of levying or collection or any
     tax, levy, rate or charge to be imposed upon the Premises, or any part
     thereof, or should any new tax, levy, rate or charge be levied or imposed
     in lieu of or in addition to those contemplated by the above definition,
     the Landlord and the Tenant hereby agree to negotiate an amendment or new
     provision to this Lease as is necessary to deal with such tax, levy, rate
     or charge, in an equitable manner so as to obviate any injustice or
     inequity which shall have arisen and should the Landlord and the Tenant
     fail to agree on such amendment or new provision the same shall be settled
     by arbitration in accordance with the Commercial Arbitration Act of British
     Columbia, and amendments thereto, or any like statute in effect from time
     to time).

4.   Sales Tax means any sales tax, goods and services tax, business transfer
     tax, value added tax or any similar tax imposed against the Landlord by the
     Government of Canada, or any provincial or municipal government to the
     extent that such tax is imposed against the Landlord or is required to be
     paid or collected by the Landlord by reason of any payment by the Tenant to
     the Landlord pursuant to any provision of this Lease.

5.   Structural Repairs means only repairs to the foundations, the structural
     subfloors, columns and beams and the structural portions of bearing walls
     and roofs of the Premises and specifically excludes maintenance of every
     kind.

6.   Tenant means the party or parties described in Section 1.1(b) and the
     heirs, executors, administrators, successors and permitted assigns thereof.

                                       33<PAGE>

                                                                   Exhibit 10.10

                                ONVIA.COM, INC.

                  AMENDED AND RESTATED 1999 STOCK OPTION PLAN

     1.   Purposes of the Plan.  The purposes of this Onvia.com, Inc. Amended
          --------------------
and Restated 1999 Stock Option Plan are to attract and retain the best available
personnel for positions of substantial responsibility, to provide additional
incentive to Employees and Consultants of the Company and its Subsidiaries and
to promote the success of the Company's business.  Options granted under the
Plan may be incentive stock options (as defined under Section 422 of the Code)
or non-statutory stock options, as determined by the Administrator at the time
of grant of an option and subject to the applicable provisions of Section 422 of
the Code, as amended, and the regulations promulgated thereunder.

     2.   Definitions.  As used herein, the following definitions shall apply:
          -----------

          (a) "Administrator" means the Board of Directors or any of its
               -------------
Committees appointed pursuant to Section 4 below.

          (b) "Affiliate" means an entity other than a Subsidiary in which the
               ---------
Company owns an equity interest or which, together with the Company, is under
common control of a third person or entity.

          (c) "Applicable Laws" means the legal requirements relating to the
               ---------------
administration of stock option plans under applicable U.S. state corporate laws,
U.S. federal and applicable state securities laws, the Code, any Stock Exchange
rules or regulations and the applicable laws of any other country or
jurisdiction where Options are granted under the Plan, as such laws, rules,
regulations and requirements shall be in place from time to time.

          (d) "Board" means the Board of Directors of the Company.
               -----

          (e) "Code" means the Internal Revenue Code of 1986, as amended.
               ----

          (f) "Committee" means one or more committees or subcommittees
               ---------
appointed by the Board of Directors in accordance with Section 4(a) below.

          (g) "Common Stock" means the Common Stock of the Company.
               ------------

          (h) "Company" means Onvia.com, Inc., a Delaware corporation.
               -------

          (i) "Consultant" means any person, including an advisor, who is
               ----------
engaged by the Company or any Parent, Subsidiary or Affiliate to render services
and is compensated for such services, and any director of the Company whether
compensated for such services or not.

          (j) "Continuous Status as an Employee or Consultant" means the absence
               ----------------------------------------------
of any interruption or termination of service as an Employee or Consultant.
Continuous Status as an Employee or Consultant shall not be considered
interrupted in the case of:  (i) sick leave, (ii) military leave, (iii) any
other leave of absence approved by the Administrator; provided, however, that
such leave is for a period of not more than ninety (90) days, unless re-
employment
<PAGE>

upon the expiration of such leave is guaranteed by contract or statute, or
unless provided otherwise pursuant to Company policy adopted from time to time
or (iv) in the case of transfers between locations of the Company or between the
Company, its Subsidiaries, its Affiliates, or their respective successors. For
purposes of this Plan, a change in status from an Employee to a Consultant or
from a Consultant to an Employee will not constitute an interruption of
Continuous Status as an Employee or Consultant.

          (k) "Director" means a member of the Board of Directors.
               --------

          (l) "Employee" means any person, including officers and Directors,
               --------
employed by the Company or any Parent, Subsidiary or Affiliate of the Company,
with the status of employment determined based upon such minimum number of hours
or periods worked as shall be determined by the Administrator in its discretion,
subject to any requirements of the Code.  The payment of a director's fee by the
Company to a Director shall not be sufficient to constitute "employment" of such
director by the Company.

          (m) "Exchange Act" means the Securities Exchange Act of 1934, as
               ------------
amended.

          (n) "Fair Market Value" means, as of any date, the fair market value
               -----------------
of Common Stock determined as follows:

              (i)   If the Common Stock is listed on any established stock
exchange or a national market system including without limitation the National
Market of the National Association of Securities Dealers, Inc. Automated
Quotation System ("Nasdaq"), its Fair Market Value shall be the closing sales
price for such stock (or the closing bid, if no sales were reported), as quoted
on such system or exchange, or the exchange with the greatest volume of trading
in Common Stock for the last market trading day prior to the time of
determination, as reported in The Wall Street Journal or such other source as
the Administrator deems reliable;

              (ii)  If the Common Stock is quoted on the Nasdaq (but not on the
National Market thereof) or regularly quoted by a recognized securities dealer
but selling prices are not reported, its Fair Market Value shall be the mean
between the high bid and low asked prices for the Common Stock for the last
market trading day prior to the time of determination, as reported in The Wall
                                                                      --------
Street Journal or such other source as the Administrator deems reliable; or
--------------

              (iii) In the absence of an established market for the Common
Stock, the Fair Market Value thereof shall be determined in good faith by the
Administrator.

          (o) "Incentive Stock Option" means an Option intended to qualify as an
               ----------------------
incentive stock option within the meaning of Section 422 of the Code, as
designated in the applicable written option agreement.

          (p) "Listed Security" means any security of the Company that is listed
               ---------------
or approved for listing on a national securities exchange or designated or
approved for designation as a national market system security on an interdealer
quotation system by the National Association of Securities Dealers, Inc.
<PAGE>

          (q)  "Named Executive" means any individual who, on the last day of
                ---------------
the Company's fiscal year, is the chief executive officer of the Company (or is
acting in such capacity) or among the four most highly compensated officers of
the Company (other than the chief executive officer).  Such officer status shall
be determined pursuant to the executive compensation disclosure rules under the
Exchange Act.

          (r)  "Nonstatutory Stock Option" means an Option not intended to
                -------------------------
qualify as an Incentive Stock Option, as designated in the applicable written
option agreement.

          (s)  "Option" means a stock option granted pursuant to the Plan.
                ------

          (t)  "Optioned Stock" means the Common Stock subject to an Option.
                --------------

          (u)  "Optionee" means an Employee or Consultant who receives an
                --------
Option.

          (v)  "Parent" means a "parent corporation," whether now or hereafter
                ------
existing, as defined in Section 424(e) of the Code, or any successor provision.

          (w)  "Plan" means this Onvia.com, Inc. Amended and Restated 1999 Stock
                ----
Option Plan.

          (x)  "Reporting Person" means an officer, Director, or greater than
                ----------------
ten percent (10%) shareholder of the Company within the meaning of Rule 16a-2
under the Exchange Act, who is required to file reports pursuant to Rule 16a-3
under the Exchange Act.

          (y)  "Rule 16b-3" means Rule 16b-3 promulgated under the Exchange Act,
                ----------
as the same may be amended from time to time, or any successor provision.

          (z)  "Share" means a share of the Common Stock, as adjusted in
                -----
accordance with Section 12 of the Plan.

          (aa)  "Stock Exchange" means any stock exchange or consolidated stock
                 --------------
price reporting system on which prices for the Common Stock are quoted at any
given time.

          (bb)  "Subsidiary" means a "subsidiary corporation," whether now or
                 ----------
hereafter existing, as defined in Section 424(f) of the Code, or any successor
provision.

          (cc)  "Ten Percent Holder" means a person who owns stock requesting
                 ------------------
more than 10% of the voting power of all classes of stock of the Company or any
Parent or Subsidiary.

     3.  Stock Subject to the Plan.  Subject to the provisions of Section 12 of
         -------------------------
the Plan, the maximum aggregate number of shares that may be optioned and sold
under the Plan is 18,000,000 shares of Common Stock (on a post-split basis),
plus an automatic annual increase on the first day of each of the Company's
fiscal years beginning in 2001 and ending in 2009 equal to the lesser of:  (i)
3,200,000 Shares (on a post-split basis); (ii) four percent (4%) of the Shares
outstanding on the last day of the immediately preceding fiscal year; or (iii)
such lesser number of shares as is determined by the Board of Directors.  The
shares may be authorized, but unissued, or reacquired Common Stock.  If an
Option should expire or become unexercisable for any reason without having been
exercised in full, the unpurchased Shares that were subject thereto shall,
unless the Plan shall have been terminated, become available for future grant
under the Plan.  In addition, any shares of Common Stock which are retained by
the Company upon exercise of an Option in order to satisfy the exercise price
for such Option or any withholding
<PAGE>

taxes due with respect to such exercise shall be treated as not issued and shall
continue to be available under the Plan. Shares repurchased by the Company
pursuant to any repurchase right which the Company may have shall not be
available for future grant under the Plan.

     4.   Administration of the Plan
          --------------------------

          (a) General.  The Plan shall be administered by the Board or a
              --------
Committee, or a combination thereof, as determined by the Board.  The Plan may
be administered by different administrative bodies with respect to different
classes of Optionees and, if permitted by the Applicable Laws, the Board may
authorize one or more Directors to grant Options under the Plan.

          (b) Administration with Respect to Reporting Persons.  With respect to
              -------------------------------------------------
Options granted to Reporting Persons and Named Executives, the Plan may (but
need not) be administered so as to permit such Options to qualify for the
exemption set forth in Rule 16b-3 and to qualify as performance-based
compensation under Section 162(m) of the Code.

          (c) Committee Composition.  If a Committee has been appointed pursuant
              ----------------------
to this Section 4, such Committee shall continue to serve in its designated
capacity until otherwise directed by the Board.  From time to time the Board may
increase the size of any Committee and appoint additional members thereof,
remove members (with or without cause) and appoint new members in substitution
therefor, fill vacancies (however caused) and remove all members of a Committee
and thereafter directly administer the Plan, all to the extent permitted by the
Applicable Laws and, in the case of a Committee administering the Plan pursuant
to Section 4(b) above, to the extent permitted or required by Rule 16b-3 and
Section 162(m) of the Code.

          (d) Powers of the Administrator.  Subject to the provisions of the
              ---------------------------
Plan and in the case of a Committee, the specific duties delegated by the Board
to such Committee, and subject to the approval of any relevant authorities,
including the approval, if required, of any Stock Exchange, the Administrator
shall have the authority, in its discretion:

              (i)   to determine the Fair Market Value of the Common Stock, in
accordance with Section 2(n) of the Plan;

              (ii)  to select the Consultants and Employees to whom Options may
from time to time be granted hereunder;

              (iii) to determine whether and to what extent Options are
granted hereunder;

              (iv)  to determine the number of shares of Common Stock to be
covered by each such option granted hereunder;

              (v)   to approve forms of agreement for use under the Plan;

              (vi)  to determine the terms and conditions, not inconsistent with
the terms of the Plan, of any option granted hereunder;

<PAGE>

              (vii)   to determine whether and under what circumstances an
Option may be settled in cash under Section 10(g) instead of Common Stock;

              (viii)  to reduce the exercise price of any Option to the then
current Fair Market Value if the Fair Market Value of the Common Stock covered
by such Option shall have declined since the date the Option was granted;

              (ix)    to construe and interpret the terms of the Plan and
Options granted under the Plan;

              (x)     to permit the early exercise of any Option in exchange for
restricted stock subject to a right of repurchase; and

              (xi)    in order to fulfill the purposes of the Plan and without
amending the Plan, to modify grants of Options to participants who are foreign
nationals or employed outside of the United States in order to recognize
differences in local law, tax policies or customs.

          (e) Effect of Administrator's Decision.  All decisions, determinations
              ----------------------------------
and interpretations of the Administrator shall be final and binding on all
Optionees.

     5.   Eligibility
          -----------

          (a) Recipients of Grants.  Nonstatutory Stock Options may be granted
              --------------------
to Employees and Consultants.  Incentive Stock Options may be granted only to
Employees; provided however that Employees of Affiliates shall not be eligible
to receive Incentive Stock Options.  An Employee or Consultant who has been
granted an Option may, if he or she is otherwise eligible, be granted additional
Options.

          (b) Type of Option.  Each Option shall be designated in the written
              --------------
option agreement as either an Incentive Stock Option or a Nonstatutory Stock
Option.  However, notwithstanding such designations, to the extent that the
aggregate Fair Market Value of the Shares with respect to which Options
designated as Incentive Stock Options are exercisable for the first time by any
Optionee during any calendar year (under all plans of the Company or any Parent
or Subsidiary) exceeds One Hundred Thousand Dollars ($100,000), such excess
Options shall be treated as Nonstatutory Stock Options.  For purposes of Section
5(b), Incentive Stock Options shall be taken into account in the order in which
they were granted, and the Fair Market Value of the Shares subject to an
Incentive Stock Option shall be determined as of the date of the grant of such
Option.

          (c) At-Will Employment Relationship.  The Plan shall not confer upon
              -------------------------------
any Optionee any right with respect to continuation of employment or consulting
relationship with the Company, nor shall it interfere in any way with such
Optionee's right or the Company's right to terminate his or her employment or
consulting relationship at any time, with or without cause.

     6.   Term of Plan.  The Plan shall become effective upon the earlier to
          ------------
occur of its adoption by the Board or its approval by the shareholders of the
Company as described in
<PAGE>

Section 19 of the Plan. It shall continue in effect for a term of ten (10) years
unless sooner terminated under Section 15 of the Plan.

     7.  Term of Option.  The term of each Option shall be the term stated in
         --------------
the Option Agreement; provided, however, that the term shall be no more than ten
(10) years from the date of grant thereof or such shorter term as may be
provided in the Option Agreement.  However, in the case of an Incentive Stock
Option granted to an Optionee who, at the time the Option is granted, owns stock
representing more than ten percent (10%) of the total combined voting power of
all classes of stock of the Company or any Parent or Subsidiary, the term of the
Option shall be five (5) years from the date of grant thereof or such shorter
term as may be provided in the Option Agreement.

     8.  Limitation on Grants to Employees.  Subject to adjustment as provided
         ---------------------------------
in Section 12 below, the maximum number of Shares which may be subject to
Options granted to any one Employee under this Plan for any fiscal year of the
Company shall be 2,000,000 Shares.

     9.  Option Exercise Price and Consideration
         ---------------------------------------

         (a)  The per share exercise price for the Shares to be issued pursuant
to exercise of an Option shall be such price as is determined by the
Administrator, but shall be subject to the following:

              (i)  In the case of an Incentive Stock Option that is:

                   (A) granted to an Employee who, at the time of the grant of
such Incentive Stock Option, is a Ten Percent Holder, the per Share exercise
price shall be no less than one hundred ten percent (110%) of the Fair Market
Value per Share on the date of grant.

                   (B) granted to any other Employee, the per Share exercise
price shall be no less than one hundred percent (100%) of the Fair Market Value
per Share on the date of grant.

              (ii) In the case of a Nonstatutory Stock Option that is:

                   (A) granted prior to the date, if any, on which the Common
Stock becomes a Listed Security to a person who, at the time of the grant of
such Option, is a Ten Percent Holder, the per Share exercise price shall be no
less than one hundred ten percent (110%) of the Fair Market Value per Share on
the date of the grant.

                   (B) granted prior to the date, if any, on which the Common
Stock becomes a Listed Security to any other eligible person, the per Share
exercise price shall be no less than 85% of the Fair Market Value per Share on
the date of grant if required by the Applicable Laws and, if not so required,
shall be such price as is determined by the Administrator.
<PAGE>

                   (C) granted on or after the date, if any, on which the Common
Stock becomes a Listed Security to any eligible person, the per share Exercise
Price shall be such price as determined by the Administrator; provided, however,
that if such eligible person is, at the time of the grant of such Option, a
Named Executive of the Company, the per share Exercise Price shall be no less
than 100% of the Fair Market Value on the date of grant if such Option is
intended to qualify as performance-based compensation under Section 162(m) of
the Code.

          (iii)   Notwithstanding the foregoing, Options may be granted with a
per Share exercise price other than as required above pursuant to a merger or
other corporate transaction.

     (b)  The consideration to be paid for the Shares to be issued upon
exercise of an Option, including the method of payment, shall be determined by
the Administrator (and, in the case of an Incentive Stock Option, shall be
determined at the time of grant) and may consist entirely of (i) cash, (ii)
check, (iii) at the discretion of the Board of Directors, a promissory note,
(iv) other Shares that (x) in the case of Shares acquired upon exercise of an
Option, have been owned by the Optionee for more than six (6) months on the date
of surrender or such other period as may be required to avoid a charge to the
Company's earnings, and (y) have a Fair Market Value on the date of surrender
equal to the aggregate exercise price of the Shares as to which such Option
shall be exercised, (v) authorization for the Company to retain from the total
number of Shares as to which the Option is exercised that number of Shares
having a Fair Market Value on the date of exercise equal to the exercise price
for the total number of Shares as to which the Option is exercised, (vi)
delivery of a properly executed exercise notice together with such other
documentation as the Administrator and the broker, if applicable, shall require
to effect an exercise of the Option and delivery to the Company of the sale or
loan proceeds required to pay the exercise price and any applicable income or
employment taxes, (vii) delivery of an irrevocable subscription agreement for
the Shares that irrevocably obligates the option holder to take and pay for the
Shares not more than twelve months after the date of delivery of the
subscription agreement, (viii) any combination of the foregoing methods of
payment or (ix) such other consideration and method of payment for the issuance
of Shares to the extent permitted under Applicable Laws.  In making its
determination as to the type of consideration to accept, the Administrator shall
consider if acceptance of such consideration may be reasonably expected to
benefit the Company.

     10.  Exercise of Option
          ------------------

          (a) Procedure for Exercise; Rights as a Shareholder.  Any Option
              -----------------------------------------------
granted hereunder shall be exercisable at such times and under such conditions
as determined by the Administrator, including performance criteria with respect
to the Company and/or the Optionee, and as shall be permissible under the terms
of the Plan.

               An Option may not be exercised for a fraction of a Share.

               An Option shall be deemed to be exercised when written notice of
such exercise has been given to the Company in accordance with the terms of the
Option by the person entitled to exercise the Option and the Company has
received full payment for the Shares with
<PAGE>

respect to which the Option is exercised. Full payment may, as authorized by the
Board of Directors, consist of any consideration and method of payment allowable
under Section 8(b) of the Plan. Until the issuance (as evidenced by the
appropriate entry on the books of the Company or of a duly authorized transfer
agent of the Company) of the stock certificate evidencing such Shares, no right
to vote or receive dividends or any other rights as a shareholder shall exist
with respect to the Optioned Stock, not withstanding the exercise of the Option.
The Company shall issue (or cause to be issued) such stock certificate promptly
upon exercise of the Option. No adjustment will be made for a dividend or other
right for which the record date is prior to the date the stock certificate is
issued, except as provided in Section 12 of the Plan.

              Exercise of an Option in any manner shall result in a decrease in
the number of Shares that thereafter may be available, both for purposes of the
Plan and for sale under the Option, by the number of Shares as to which the
Option is exercised.

          (b) Termination of Employment or Consulting Relationship.  Subject to
              ----------------------------------------------------
Sections 10(c) and 10(d), in the event of termination of an Optionee's
Continuous Status as an Employee or Consultant with the Company, such Optionee
may, but only within three (3) months (or such other period of time not less
than thirty (30) days as is determined by the Administrator, with such
determination in the case of an Incentive Stock Option being made at the time of
grant of the Option and not exceeding three (3) months) after the date of such
termination (but in no event later than the expiration date of the term of such
Option as set forth in the Option Agreement), exercise his or her Option to the
extent that the Optionee was entitled to exercise it at the date of such
termination.  To the extent that Optionee was not entitled to exercise the
Option at the date of such termination, or if Optionee does not exercise such
Option to the extent so entitled within the time specified herein, the Option
shall terminate.  No termination shall be deemed to occur and this Section 10(b)
shall not apply if (i) the Optionee is a Consultant who becomes an Employee; or
(ii) the Optionee is an Employee who becomes a Consultant.

          (c)  Disability of Optionee.
               ----------------------

               (i)  Notwithstanding the provisions of Section 10(b) above, in
the event of termination of an Optionee's Continuous Status as an Employee or
Consultant as a result of his or her total and permanent disability (within the
meaning of Section 22(e)(3) of the Code), Optionee may, but only within twelve
(12) months from the date of such termination (but in no event later than the
expiration date of the term of such Option as set forth in the Option
Agreement), exercise the Option to the extent otherwise entitled to exercise it
at the date of such termination. To the extent that Optionee was not entitled to
exercise the Option at the date of termination, or if Optionee does not exercise
such Option to the extent so entitled within the time specified herein, the
Option shall terminate.

               (ii) In the event of termination of an Optionee's Continuous
Status as an Employee or Consultant as a result of a disability which does not
fall within the meaning of total and permanent disability (as set forth in
Section 22(e)(3) of the Code), Optionee may, but only within six (6) months from
the date of such termination (but in no event later than the expiration date of
the term of such Option as set forth in the Option Agreement), exercise the
Option to the extent otherwise entitled to exercise it at the date of such
termination. However, to
<PAGE>

the extent that such Optionee fails to exercise an Option which is an Incentive
Stock Option (within the meaning of Section 422 of the Code) within three (3)
months of the date of such termination, the Option will not qualify for
Incentive Stock Option treatment under the Code. To the extent that Optionee was
not entitled to exercise the Option at the date of termination, or if Optionee
does not exercise such Option to the extent so entitled within six months (6)
from the date of termination, the Option shall terminate.

          (d) Death of Optionee.  In the event of the death of an Optionee
              -----------------
during the period of Continuous Status as an Employee or Consultant, or within
thirty (30) days following the termination of the Optionee's Continuous Status
as an Employee or Consultant, the Option may be exercised, at any time within
six (6) months following the date of death (but in no event later than the
expiration date of the term of such Option as set forth in the Option
Agreement), by the Optionee's estate or by a person who acquired the right to
exercise the Option by bequest or inheritance, but only to the extent the
Optionee was entitled to exercise the Option at the date of death or, if
earlier, the date of termination of the Continuous Status as an Employee or
Consultant.  To the extent that Optionee was not entitled to exercise the Option
at the date of death or termination, as the case may be, or if Optionee does not
exercise such Option to the extent so entitled within the time specified herein,
the Option shall terminate.

          (e) Extension of Exercise Period.  The Administrator shall have full
              ----------------------------
power and authority to extend the period of time for which an Option is to
remain exercisable following termination of an Optionee's Continuous Status as
an Employee or Consultant from the periods set forth in Sections 10(b), 10(c)
and 10(d) above or in the Option Agreement to such greater time as the Board
shall deem appropriate, provided, that in no event shall such Option be
exercisable later than the date of expiration of the term of such Option as set
forth in the Option Agreement.

          (f) Rule 16b-3.  Options granted to Reporting Persons shall comply
              ----------
with Rule 16b-3 and shall contain such additional conditions or restrictions as
may be required thereunder to qualify for the maximum exemption for Plan
transactions.

          (g) Buyout Provisions.  The Administrator may at any time offer to buy
              -----------------
out for a payment in cash or Shares, an Option previously granted, based on such
terms and conditions as the Administrator shall establish and communicate to the
Optionee at the time that such offer is made.

     11.  Stock Withholding to Satisfy Withholding Tax Obligations.  At the
          --------------------------------------------------------
discretion of the Administrator, Optionees may satisfy withholding obligations
as provided in this paragraph.  When an Optionee incurs tax liability in
connection with an Option, which tax liability is subject to tax withholding
under applicable tax laws, and the Optionee is obligated to pay the Company an
amount required to be withheld under applicable tax laws, the Optionee may
satisfy the withholding tax obligation by one or some combination of the
following methods: (a) by cash payment, (b) out of Optionee's current
compensation, (c) if permitted by the Administrator, in its discretion, by
surrendering to the Company Shares that (i) in the case of Shares previously
acquired from the Company, have been owned by the Optionee for more than six (6)
months on the date of surrender and (ii) have a fair market value on the date of
surrender equal to or less
<PAGE>

than the statutory minimum tax withholding applicable to the ordinary income
recognized by the Optionee or (d) if permitted by the Administrator, by electing
to have the Company withhold from the Shares to be issued upon exercise of the
Option, if any, that number of Shares having a fair market value equal to the
statutory minimum amount required to be withheld. For this purpose, the fair
market value of the Shares to be withheld shall be determined on the date that
the amount of tax to be withheld is to be determined (the "Tax Date").
                                                           --------

              Any surrender by a Reporting Person of previously owned Shares to
satisfy tax withholding obligations arising upon exercise of this Option must
comply with the applicable provisions of Rule 16b-3 and shall be subject to such
additional conditions or restrictions as may be required thereunder to qualify
for the maximum exemption from Section 16 of the Exchange Act with respect to
Plan transactions.

              All elections by an Optionee to have Shares withheld to satisfy
tax withholding obligations shall be made in writing in a form acceptable to the
Administrator and shall be subject to the following restrictions:

          (a) the election must be made on or prior to the applicable Tax Date;

          (b) once made, the election shall be irrevocable as to the particular
Shares of the Option as to which the election is made;

          (c) all elections shall be subject to the consent or disapproval of
the Administrator; and

          (d) if the Optionee is a Reporting Person, the election must comply
with the applicable provisions of Rule 16b-3 and shall be subject to such
additional conditions or restrictions as may be required thereunder to qualify
for the maximum exemption from Section 16 of the Exchange Act with respect to
Plan transactions.

              In the event the election to have Shares withheld is made by an
Optionee and the Tax Date is deferred under Section 83 of the Code because no
election is filed under Section 83(b) of the Code, the Optionee shall receive
the full number of Shares with respect to which the Option is exercised but such
Optionee shall be unconditionally obligated to tender back to the Company the
proper number of Shares on the Tax Date.

     12.  Adjustments Upon Changes in Capitalization; Corporate Transactions
          ------------------------------------------------------------------

          (a) Changes in Capitalization.  Subject to any required action by the
              -------------------------
shareholders of the Company, the number of shares of Common Stock covered by
each outstanding Option, and the number of shares of Common Stock that have been
authorized for issuance under the Plan but as to which no Options have yet been
granted or that have been returned to the Plan upon cancellation or expiration
of an Option, the number of Shares described in Sections 3(i) and 8 above, as
well as the price per share of Common Stock covered by each such outstanding
Option, shall be proportionately adjusted for any increase or decrease in the
number of issued shares of Common Stock resulting from a stock split, reverse
stock split, stock dividend, combination, recapitalization or reclassification
of the Common Stock, or any other
<PAGE>

increase or decrease in the number of issued shares of Common Stock effected
without receipt of consideration by the Company; provided, however, that
conversion of any convertible securities of the Company shall not be deemed to
have been "effected without receipt of consideration." Such adjustment shall be
made by the Board of Directors, whose determination in that respect shall be
final, binding and conclusive. Except as expressly provided herein, no issuance
by the Company of shares of stock of any class, or securities convertible into
shares of stock of any class, shall affect, and no adjustment by reason thereof
shall be made with respect to, the number or price of shares of Common Stock
subject to an Option.

          (b) Dissolution or Liquidation.  In the event of the proposed
              --------------------------
dissolution or liquidation of the Company, the Option will terminate immediately
prior to the consummation of such proposed action, unless otherwise provided by
the Administrator.  The Administrator may, in the exercise of its sole
discretion in such instances, declare that any Option shall terminate as of a
date fixed by the Administrator and give each Optionee the right to exercise his
or her Option as to all of the Optioned Stock, including Shares as to which the
Option would not otherwise be exercisable.

          (c) Acquisition, Merger or Change in Control
              ----------------------------------------

              (i)   In the event of a Change in Control, if and to the extent
such outstanding Option is not to be assumed by the successor corporation at the
consummation of the Change of Control, the vesting of such Option shall
automatically be accelerated so that twenty-five percent (25%) of the unvested
shares of Common Stock covered by such Option shall be fully vested upon the
consummation of the Change in Control.

              (ii)  The vesting of each outstanding Option held by an Optionee
who is an executive officer shall be accelerated completely so that one hundred
percent (100%) of the shares of common stock covered by such Option are fully
vested and exercisable in the event that within twelve (12) months of the
consummation of such Change of Control, such Optionee's employment by the
Company is either terminated by the Company other than for Cause (as defined
below) or terminated by the Optionee for Good Reason (as defined below). For
purposes of this Plan, "executive officer" shall mean: President, Chief
Financial Officer, Executive Officer, Chairman of the Board, Vice President
Marketing, Vice President Sales, Vice President Engineering, Director of
Customer Experience, Vice President of Business Development, Chief Financial
Officer and Vice President of Products and Services.

                    For purposes of this Section 11(c)(ii), "Cause" means fraud,
misappropriation or embezzlement on the part of the Optionee which results in
material loss, damage or injury to the Company, the Optionee's conviction of a
felony involving moral turpitude, or the Optionee's gross neglect of duties.

                   For purposes of this Section 11(c)(ii), "Good Reason" means a
material reduction in compensation or a relocation of the Optionee's principal
worksite to a location more than fifty (50) miles from the Optionee's pre-Change
of Control worksite or a material reduction in the Optionee's compensation,
responsibilities or authority as in effect before the Change of Control.
<PAGE>

               (iii)  The Administrator shall have the authority, in the
Administrator's sole discretion, to provide for the automatic acceleration of
any outstanding Option upon the occurrence of a Change in Control, but only to
the extent that such acceleration does not interfere with any "pooling of
interests" accounting treatment used in connection with the Change in Control.

          (d)  Certain Distributions.  In the event of any distribution to the
               ---------------------
Company's shareholders of securities of any other entity or other assets (other
than dividends payable in cash or stock of the Company) without receipt of
consideration by the Company, the Administrator may, in its discretion,
appropriately adjust the price per share of Common Stock covered by each
outstanding Option to reflect the effect of such distribution.

     13.  Non-Transferability of Options.  Options may not be sold, pledged,
          ------------------------------
assigned, hypothecated, transferred, or disposed of in any manner other than by
will or by the laws of descent or distribution; provided however that, after the
date, if any, upon which the Common Stock becomes a Listed Security, the
Administrator may in its discretion grant transferable Nonstatutory Stock
Options pursuant to Option Agreements specifying (i) the manner in which such
Nonstatutory Stock Options are transferable and (ii) that any such transfer
shall be subject to the Applicable Laws. The designation of a beneficiary by an
Optionee will not constitute a transfer. An Option may be exercised, during the
lifetime of the holder of the Option, only by such holder or a transferee
permitted by this Section 13.

     14.  Time of Granting Options.  The date of grant of an Option shall, for
          ------------------------
all purposes, be the date on which the Administrator makes the determination
granting such Option, or such other date as is determined by the Board of
Directors.  Notice of the determination shall be given to each Employee or
Consultant to whom an Option is so granted within a reasonable time after the
date of such grant.

     15.  Amendment and Termination of the Plan
          -------------------------------------

          (a) Amendment and Termination.  The Board of Directors may at any time
              -------------------------
amend, alter, suspend or discontinue the Plan, but no amendment, alteration,
suspension or discontinuation shall be made that would impair the rights of any
Optionee under any grant theretofore made, without his or her consent.  In
addition, to the extent necessary and desirable to comply with the Applicable
Laws, the Company shall obtain shareholder approval of any Plan amendment in
such a manner and to such a degree as required.

          (b) Effect of Amendment or Termination.  No amendment or termination
              ----------------------------------
of the Plan shall adversely affect Options already granted, unless mutually
agreed otherwise between the Optionee and the Board of Directors, which
agreement must be in writing and signed by the Optionee and the Company.
<PAGE>

     16.  Conditions Upon Issuance of Shares.  Shares shall not be issued
          ----------------------------------
pursuant to the exercise of an Option unless the exercise of such Option and the
issuance and delivery of such Shares pursuant thereto shall comply with the
Applicable Laws, with such compliance determined by the Company in consultation
with its legal counsel.

          As a condition to the exercise of an Option, the Company may require
the person exercising such Option to represent and warrant at the time of any
such exercise that the Shares are being purchased only for investment and
without any present intention to sell or distribute such Shares if, in the
opinion of counsel for the Company, such a representation is required by law.

     17.  Reservation of Shares.  The Company, during the term of this Plan,
          ---------------------
will at all times reserve and keep available such number of Shares as shall be
sufficient to satisfy the requirements of the Plan.

     18.  Agreements.  Options shall be evidenced by written agreements in such
          ----------
form as the Administrator shall approve from time to time.

     19.  Shareholder Approval.  If required by the Applicable Laws, continuance
          --------------------
of the Plan shall be subject to approval by the shareholders of the Company
within twelve (12) months before or after the date the Plan is adopted or
amended, as applicable.  Such shareholder approval shall be obtained in the
degree and manner required under the Applicable Laws.  All Options issued under
the Plan shall become void in the event such approval is not obtained.

     20.  Information to Optionees.  To the extent required by the Applicable
          ------------------------
Laws, the Company shall provide financial statements at least annually to each
Optionee during the period such Optionee has one or more Options outstanding.
The Company shall not be required to provide such information if the issuance of
Options under the Plan is limited to key employees whose duties in connection
with the Company assure their access to equivalent information.  In addition, at
the time of issuance of any securities under the Plan, the Company shall provide
to the Optionee a copy of the Plan and a copy of any agreement(s) pursuant to
which securities granted under the Plan are issued.

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