Document:

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                                                               EXHIBIT 10.43

                              EMPLOYMENT AGREEMENT

          THIS EMPLOYMENT AGREEMENT ("Agreement") is entered into by and between
Julius Genachowski ("Executive") and USA Networks, Inc., a Delaware corporation
(the "Company"), and is effective August 9, 2000 (the "Effective Date").

          WHEREAS, the Company desires to establish its right to the services of
Executive, in the capacity described below, on the terms and conditions
hereinafter set forth, and Executive is willing to accept such employment on
such terms and conditions.

          NOW, THEREFORE, in consideration of the mutual agreements hereinafter
set forth, Executive and the Company have agreed and do hereby agree as follows:

1A.  EMPLOYMENT. The Company agrees to employ Executive as Senior Vice
President, General Counsel and Secretary, and Executive accepts and agrees to
such employment. During Executive's employment with the Company, Executive shall
do and perform all services and acts necessary or advisable to fulfill the
duties and responsibilities as are commensurate and consistent with Executive's
position and shall render such services on the terms set forth herein. Executive
shall have supervision and day-to-day authority over the legal affairs of the
Company and such other business and legal affairs as the parties may mutually
agree. During Executive's employment with the Company, Executive shall report
directly to the Vice Chairman (hereinafter referred to as the "Reporting
Officer"). During any period in which the position of Vice Chairman is vacant,
Executive shall report to the senior executive officer who has responsibility
for corporate staff functions. Executive shall have such powers and duties with
respect to the Company as may reasonably be assigned to Executive by the Board
or Reporting Officer, to the extent consistent with Executive's position and
status as set forth above. Executive agrees to devote all of his working time,
attention and efforts to the Company and to perform the duties of Executive's
position in accordance with the Company's policies as in effect from time to
time. Executive's principal place of employment shall be the Company's offices
located in New York City. Executive may work in the Washington, D.C. area every
other Friday (and remain in Washington, D.C. through the weekend), following an
initial transition of up to four months during which Executive may work in
Washington, D.C. every Friday. Executive may also occasionally work in
Washington D.C. on other weekdays, up to three days per month.

2A.  TERM OF AGREEMENT. The term ("Term") of this Agreement shall commence on
the Effective Date and shall continue until September 30, 2002, unless sooner
terminated in accordance with the provisions of Section 1 of the Standard Terms
and Conditions attached hereto.

3A.  COMPENSATION.

     (a)  BASE SALARY. During the Term, the Company shall pay Executive an
annual base salary of $400,000 (the "Base Salary"), payable in equal biweekly
installments or in accordance with the Company's payroll practice as in effect
from time to time.

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     (b)  DISCRETIONARY BONUS. During the Term, Executive shall be eligible to
receive discretionary annual bonuses.

     (c)  STOCK OPTIONS. In consideration of Executive's entering into this
Agreement, Executive has been granted under USA Networks, Inc.'s 1997 Stock and
Annual Incentive Plan (the "Plan") a non-qualified stock option (the "Option")
to purchase 200,000 shares of USA Networks, Inc. ("USAi") common stock, par
value $.0l per share (the "Common Stock"). The exercise price of the Option is
$21.875. Such Option shall vest and become exercisable in four equal
installments on each of the first, second, third and fourth anniversaries of the
Effective Date, provided that the Option shall become 100% vested and
exercisable upon a Change in Control (as such term is defined in the Plan). The
Option shall expire upon the earlier to occur of (i) ten years from the date of
grant (the "Option Term") or (ii) except as otherwise provided in the Option
award agreement, one year following the termination of Executive's employment
with the Company for any reason other than Cause. The Option shall become vested
and exercisable following a Change in Control. Upon termination by the Company
other than for Cause, or by Executive for Good Reason, all of Executive's
options that would vest in the 12 months following such termination shall become
vested and exercisable immediately upon such termination. Notwithstanding the
foregoing, expiration of the Term without renewal shall not result in the
acceleration of any options that are not then vested and exercisable.

     (d)  BENEFITS. From the Effective Date through the date of termination of
Executive's employment with the Company for any reason, Executive shall be
entitled to participate in any welfare, health and life insurance and pension
benefit and incentive programs as may be adopted from time to time by the
Company on the same basis as that provided to similarly situated Executives of
the Company. Without limiting the generality of the foregoing, Executive shall
be entitled to the following benefits:

          (i)   REIMBURSEMENT FOR BUSINESS EXPENSES. During the Term, the
     Company shall reimburse Executive for all reasonable and necessary expenses
     incurred by Executive in performing his duties for the Company, on the same
     basis as similarly situated Executives and in accordance with the Company's
     policies as in effect from time to time.

          (ii)  VACATION. During the Term, Executive shall be entitled to four
     weeks of paid vacation per year, in accordance with the plans, policies,
     programs and practices of the Company applicable to similarly situated
     Executives of the Company generally.

          (iii) APARTMENT. Throughout the period of the Executive's employment
     with the Company during the Term, Executive shall receive up to $50,000
     annually for an apartment in New York City for Executive's use, plus the
     cost of a broker to obtain the initial New York Apartment (such broker cost
     not to exceed $7,500 in the aggregate) but not the cost of a broker for any
     successor apartment(s). Such payments shall begin as of the Effective Date,
     and Executive shall be solely responsible for the payment for any
     transitional housing until a rental apartment is obtained. The Company
     shall pay the Executive such additional amounts as shall be necessary to
     make the Executive whole on a net after-tax basis for all Taxes (as defined
     herein) required to be paid by the Executive

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     with respect to all taxable income he receives pursuant to the provisions
     of this Section 3A(d)(iii); provided that the aggregate amount payable by
     the Company under this Section 3A(d)(iii) shall not exceed $100,000 per
     year (with the exception that, if Executive uses the services of a broker
     to obtain the New York apartment, the additional aggregate amount payable
     by the Company, on a one-time basis, shall not exceed $15,000). The term
     "Taxes" means all federal, state and local income, employment and capital
     gains taxes. At the time Executive rents the New York apartment, he shall
     notify the Company in writing of the annual rent for such apartment (and
     from time to time for any successor apartment). Executive shall also
     certify (from time to time and at the request of the Company) that he
     continues to maintain a separate residence in the Washington D.C. area.

          (iv)  RELOCATION. Executive shall receive $7,500 for reasonable
     relocation costs, including costs associated with setting up the New York
     apartment for residency.

4A.  NOTICES. All notices and other communications under this Agreement shall be
in writing and shall be given by first-class mail, certified or registered with
return receipt requested or hand delivery acknowledged in writing by the
recipient personally, and shall be deemed to have been duly given three days
after mailing or immediately upon duly acknowledged hand delivery to the
respective persons named below:

          If to the Company:                USA Networks, Inc.
                                            152 West 57th Street
                                            New York, NY 10019
                                            Attention:  Vice Chairman

          If to Executive:                  Julius Genachowski
                                            3005 Porter Street, N.W.
                                            Washington, D.C. 20008

Either party may change such party's address for notices by notice duly given
pursuant hereto.

5A.  GOVERNING LAW; JURISDICTION. This Agreement and the legal relations thus
created between the parties hereto shall be governed by and construed under and
in accordance with the internal laws of the State of New York without reference
to the principles of conflicts of laws. Any and all disputes between the parties
which may arise pursuant to this Agreement will be heard and determined before
an appropriate federal court in New York, or, if not maintainable therein, then
in an appropriate New York state court. The parties acknowledge that such courts
have jurisdiction to interpret and enforce the provisions of this Agreement, and
the parties consent to, and waive any and all objections that they may have as
to, personal jurisdiction and/or venue in such courts.

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6A.  COUNTERPARTS. This Agreement may be executed in several counterparts, each
of which shall be deemed to be an original but all of which together will
constitute one and the same instrument. Executive expressly understands and
acknowledges that the Standard Terms and Conditions attached hereto are
incorporated herein by reference, deemed a part of this Agreement and are
binding and enforceable provisions of this Agreement. References to "this
Agreement" or the use of the term "hereof" shall refer to this Agreement and the
Standard Terms and Conditions attached hereto, taken as a whole.

          IN WITNESS WHEREOF, the Company has caused this Agreement to be
executed and delivered by its duly authorized officer and Executive has executed
and delivered this Agreement on July 19, 2000.

                                      USA NETWORKS, INC.

                                      /s/ Victor A. Kaufman
                                      ------------------------------------------
                                      By: Victor A. Kaufman
                                      Title: Vice Chairman

                                      /s/ Julius Genachowski
                                      ------------------------------------------
                                      Julius Genachowski

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                          STANDARD TERMS AND CONDITIONS

1.   TERMINATION OF EXECUTIVE'S EMPLOYMENT.

     (a)  DEATH. In the event Executive's employment hereunder is terminated by
reason of Executive's death, the Company shall pay Executive's designated
beneficiary or beneficiaries, within 30 days of Executive's death in a lump sum
in cash, Executive's Base Salary through the end of the month in which death
occurs and any Accrued Obligations (as defined in paragraph 1(f) below).

     (b)  DISABILITY. If, as a result of Executive's incapacity due to physical
or mental illness ("Disability"), Executive shall have been absent from the
full-time performance of Executive's duties with the Company for a period of
four consecutive months and, within 30 days after written notice is provided to
him by the Company (in accordance with Section 6 hereof), Executive shall not
have returned to the full-time performance of his duties, Executive's employment
under this Agreement may be terminated by the Company for Disability. During any
period prior to such termination during which Executive is absent from the
full-time performance of Executive's duties with the Company due to Disability,
the Company shall continue to pay Executive's Base Salary at the rate in effect
at the commencement of such period of Disability, offset by any amounts payable
to Executive under any disability insurance plan or policy provided by the
Company. Upon termination of Executive's employment due to Disability, the
Company shall pay Executive within 30 days of such termination (i) Executive's
Base Salary through the end of the month in which termination occurs in a lump
sum in cash, offset by any amounts payable to Executive under any disability
insurance plan or policy provided by the Company; and (ii) any Accrued
Obligations (as defined in paragraph 1(f) below).

     (c)  TERMINATION FOR CAUSE. The Company may terminate Executive's
employment under this Agreement for Cause at any time prior to the expiration of
the Term. As used herein, "Cause" shall mean: (i) the plea of guilty or nolo
contendere to, or conviction for, the commission of a felony offense by
Executive; PROVIDED, HOWEVER, that after indictment, the Company may suspend
Executive from the rendition of services, but without limiting or modifying in
any other way the Company's obligations under this Agreement; (ii) a material
breach by Executive of a fiduciary duty owed to the Company; (iii) a material
breach by Executive of any of the covenants made by Executive in Section 2
hereof; or (iv) the willful or gross neglect by Executive of the material duties
required by this Agreement. In the event of Executive's termination for Cause,
this Agreement shall terminate without further obligation by the Company, except
for the payment of any Accrued Obligations (as defined in paragraph 1(f) below).

     (d)  TERMINATION BY THE COMPANY OTHER THAN FOR DEATH, DISABILITY OR CAUSE.
If Executive's employment is terminated by the Company for any reason other than
Executive's death or Disability or for Cause, or by Executive for Good Reason
(as defined below), then (i) the Company shall pay Executive the Base Salary
through the end of the Term over the course of the then remaining Term; and (ii)
the Company shall pay Executive within 30 days of the date of such termination
in a lump sum in cash any Accrued Obligations (as

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defined in paragraph 1(f) below), (iii) the Company shall continue to make New
York apartment payments pursuant to Section 3A(d)(iii) until the earliest time
that Executive can terminate or sublease the apartment lease; (iv) certain of
Executive's unvested stock options shall become vested and exercisable, pursuant
to Section 3A(c) of this Agreement. As used herein, "Good Reason" means that the
Company, without Executive's written consent (i) reduces Executive's Base Salary
or benefits, provided that Company may alter, amend or terminate any benefit
plan not expressly provided for under Sections 3A so long as any such changes
apply to executive officers generally; (ii) materially reduces Executive's
principal duties, responsibilities or authority as Senior Vice President and
General Counsel, including noncompliance with the reporting provision in
Section 1A; (iii) relocates Executive's principal place of employment outside
the New York metropolitan area or does not comply with the obligations
concerning Washington DC in Section 1A; or (iv) materially breaches this
Agreement.

     (e)  MITIGATION; OFFSET. In the event of termination of Executive's
employment prior to the end of the Term, Executive shall use reasonable best
efforts to seek other employment and to take other reasonable actions to
mitigate the amounts payable under Section 1 hereof. If Executive obtains other
employment during the Term, the amount of any payment or benefit provided for
under Section 1 hereof which has been paid to Executive shall be refunded to the
Company by Executive in an amount equal to any compensation earned by Executive
as a result of employment with or services provided to another employer after
the date of Executive's termination of employment and prior to the otherwise
applicable expiration of the Term, and all future amounts payable by the Company
to Executive during the remainder of the Term shall be offset by the amount
earned by Executive from another employer. For purposes of this Section 1(e),
Executive shall have an obligation to inform the Company regarding Executive's
employment status following termination and during the period encompassing the
Term.

     (f)  ACCRUED OBLIGATIONS. As used in this Agreement, "Accrued Obligations"
shall mean the sum of (i) any portion of Executive's Base Salary through the
date of death or termination of employment for any reason, as the case may be,
which has not yet been paid; and (ii) any compensation previously earned but
deferred by Executive (together with any interest or earnings thereon) that has
not yet been paid.

2.   CONFIDENTIAL INFORMATION; NON-SOLICITATION; AND PROPRIETARY RIGHTS.

     (a)  CONFIDENTIALITY. Executive acknowledges that while employed by the
Company Executive will occupy a position of trust and confidence. Executive
shall not, except as may be required to perform Executive's duties hereunder or
as required by applicable law, without limitation in time or until such
information shall have become public other than by Executive's unauthorized
disclosure, disclose to others or use, whether directly or indirectly, any
Confidential Information regarding the Company or any of its subsidiaries or
affiliates. "Confidential Information" shall mean information about the Company
or any of its subsidiaries or affiliates, and their clients and customers that
is not disclosed by the Company or any of its subsidiaries or affiliates for
financial reporting purposes and that was learned by Executive in the course of
employment by the Company or any of its subsidiaries or affiliates, including
(without limitation) any proprietary knowledge, trade secrets, data, formulae,
information and

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client and customer lists and all papers, resumes, and records (including
computer records) of the documents containing such Confidential Information.
Executive acknowledges that such Confidential Information is specialized, unique
in nature and of great value to the Company and its subsidiaries or affiliates,
and that such information gives the Company and its subsidiaries or affiliates a
competitive advantage. Executive agrees to deliver or return to the Company, at
the Company's request at any time or upon termination or expiration of
Executive's employment or as soon thereafter as possible, all documents,
computer tapes and disks, records, lists, data, drawings, prints, notes and
written information (and all copies thereof) furnished by the Company and its
subsidiaries or affiliates or prepared by Executive in the course of Executive's
employment by the Company and its subsidiaries or affiliates. As used in this
Agreement, "subsidiaries" and "affiliates" shall mean any company controlled by,
controlling or under common control with the Company.

     (b)  PROPRIETARY RIGHTS; ASSIGNMENT. All Executive Developments shall be
made for hire by the Executive for the Company or any of its subsidiaries or
affiliates. "Executive Developments" means any idea, discovery, invention,
design, method, technique, improvement, enhancement, development, computer
program, machine, algorithm or other work or authorship that (i) relates to the
business or operations of the Company or any of its subsidiaries or affiliates,
or (ii) results from or is suggested by any undertaking assigned to the
Executive or work performed by the Executive for or on behalf of the Company or
any of its subsidiaries or affiliates, whether created alone or with others,
during or after working hours. All Confidential Information and all Executive
Developments shall remain the sole property of the Company or any of its
subsidiaries or affiliates. The Executive shall acquire no proprietary interest
in any Confidential Information or Executive Developments developed or acquired
during the Term. To the extent the Executive may, by operation of law or
otherwise, acquire any right, title or interest in or to any Confidential
Information or Executive Development, the Executive hereby assigns to the
Company all such proprietary rights. The Executive shall, both during and after
the Term, upon the Company's request, promptly execute and deliver to the
Company all such assignments, certificates and instruments, and shall promptly
perform such other acts, as the Company may from time to time in its discretion
deem necessary or desirable to evidence, establish, maintain, perfect, enforce
or defend the Company's rights in Confidential Information and Executive
Developments.

     (c)  COMPLIANCE WITH POLICIES AND PROCEDURES. During the Term, Executive
shall adhere to the policies and standards of professionalism set forth in the
Company's Policies and Procedures as they may exist from time to time.

     (d)  REMEDIES FOR BREACH. Executive expressly agrees and understands that
the remedy at law for any breach by Executive of this Section 2 will be
inadequate and that damages flowing from such breach are not usually susceptible
to being measured in monetary terms. Accordingly, it is acknowledged that upon
Executive's violation of any provision of this Section 2 the Company shall be
entitled to obtain from any court of competent jurisdiction immediate injunctive
relief and obtain a temporary order restraining any threatened or further breach
as well as an equitable accounting of all profits or benefits arising out of
such violation. Nothing in this Section 2 shall be deemed to limit the Company's
remedies at law or in equity for

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any breach by Executive of any of the provisions of this Section 2, which may be
pursued by or available to the Company.

     (e)  SURVIVAL OF PROVISIONS. The obligations contained in this Section 2
shall, to the extent provided in this Section 2, survive the termination or
expiration of Executive's employment with the Company and, as applicable, shall
be fully enforceable thereafter in accordance with the terms of this Agreement.
If it is determined by a court of competent jurisdiction in any state that any
restriction in this Section 2 is excessive in duration or scope or is
unreasonable or unenforceable under the laws of that state, it is the intention
of the parties that such restriction may be modified or amended by the court to
render it enforceable to the maximum extent permitted by the law of that state.

3.   TERMINATION OF PRIOR AGREEMENTS. This Agreement constitutes the entire
agreement between the parties and terminates and supersedes any and all prior
agreements and understandings (whether written or oral) between the parties with
respect to the Executive's employment with the Company or any if its affiliates
(it being understood that this Agreement does not terminate or alter Executive's
prior grants of stock options and restricted stock). Executive acknowledges and
agrees that neither the Company nor anyone acting on its behalf has made, and is
not making, and in executing this Agreement, the Executive has not relied upon,
any representations, promises or inducements except to the extent the same is
expressly set forth in this Agreement. Executive hereby represents and warrants
that by entering into this Agreement, Executive will not rescind or otherwise
breach an employment agreement with Executive's current employer prior to the
natural expiration date of such agreement

4.   ASSIGNMENT; SUCCESSORS. This Agreement is personal in its nature and
none of the parties hereto shall, without the consent of the others, assign or
transfer this Agreement or any rights or obligations hereunder, provided that,
in the event of the merger, consolidation, transfer, or sale of all or
substantially all of the assets of the Company with or to any other individual
or entity, this Agreement shall, subject to the provisions hereof, be binding
upon and inure to the benefit of such successor and such successor shall
discharge and perform all the promises, covenants, duties, and obligations of
the Company hereunder, and all references herein to the "Company" shall refer to
such successor.

5.   WITHHOLDING. The Company shall make such deductions and withhold such
amounts from each payment and benefit made or provided to Executive hereunder,
as may be required from time to time by applicable law, governmental regulation
or order.

6.   HEADING REFERENCES. Section headings in this Agreement are included
herein for convenience of reference only and shall not constitute a part of this
Agreement for any other purpose. References to "this Agreement" or the use of
the term "hereof" shall refer to these Standard Terms and Conditions and the
Employment Agreement attached hereto, taken as a whole.

7.   WAIVER; MODIFICATION. Failure to insist upon strict compliance with
any of the terms, covenants, or conditions hereof shall not be deemed a waiver
of such term, covenant, or condition, nor shall any waiver or relinquishment of,
or failure to insist upon strict compliance

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with, any right or power hereunder at any one or more times be deemed a waiver
or relinquishment of such right or power at any other time or times. This
Agreement shall not be modified in any respect except by a writing executed by
each party hereto. Subject to Section 1A above, neither the assignment of
Executive to a different Reporting Officer due to a reorganization or an
internal restructuring of the Company or its affiliated companies nor a change
in the title of the Reporting Officer shall constitute a modification or a
breach of this Agreement.

8.   SEVERABILITY. In the event that a court of competent jurisdiction
determines that any portion of this Agreement is in violation of any law or
public policy, only the portions of this Agreement that violate such law or
public policy shall be stricken. All portions of this Agreement that do not
violate any statute or public policy shall continue in full force and effect.
Further, any court order striking any portion of this Agreement shall modify the
stricken terms as narrowly as possible to give as much effect as possible to the
intentions of the parties under this Agreement.

9.   INDEMNIFICATION. The Company shall indemnify and hold Executive harmless
for acts and omissions in Executive's capacity as an officer, director or
Executive of the Company to the maximum extent permitted under applicable law;
PROVIDED, HOWEVER, that neither the Company, nor any of its subsidiaries or
affiliates shall indemnify Executive for any losses incurred by Executive as a
result of acts described in Section 1(c) of this Agreement.

ACKNOWLEDGED AND AGREED:

Date: July 19, 2000

                                      USA NETWORKS, INC.

                                      /s/ Victor A. Kaufman
                                      ------------------------------------------
                                      By: Victor A. Kaufman
                                      Title: Vice Chairman

                                      /s/ Julius Genachowski
                                      ------------------------------------------
                                      Julius Genachowski

                                       5<PAGE>
                                                                    EXHIBIT 10.9
                                      LEASE

                                TABLE OF CONTENTS

<TABLE>
<S>              <C>                                                                 <C>
ARTICLE 1
   Leased Premises, Term and Acceptance of the Leased Premises
   Section 1.1   LEASED PREMISES.......................................................1
   Section 1.2   USE OF ADDITIONAL AREAS...............................................2
   Section 1.3   GRANT AND TERM........................................................2
   Section 1.4   CONSTRUCTION OF LEASED PREMISES.......................................2
ARTICLE 2
   Rent
   Section 2.1   COVENANT TO PAY.......................................................3
   Section 2.2   BASIC RENT............................................................4
   Section 2.3   ADVANCE RENT..........................................................4
   Section 2.4   SECURITY DEPOSIT......................................................4
   Section 2.5   FREE RENT.............................................................5
   Section 2.6   RENT PAST DUE.........................................................5
ARTICLE 3
   Taxes and Operating Costs
   Section 3.1   TAXES PAYABLE BY LANDLORD.............................................5
   Section 3.2   TAXES PAYABLE BY TENANT...............................................6
   Section 3.3   BUSINESS TAXES AND OTHER TAXES OF THE TENANT..........................6
   Section 3.4   TENANT'S PROPORTIONATE SHARE OF OPERATING COSTS.......................6
   Section 3.5   PAYMENT OF TAXES AND OPERATING COSTS..................................6
ARTICLE 4
   Building - Control and Services
   Section 4.1   CONTROL OF THE BUILDING...............................................7
   Section 4.2   LANDLORD'S SERVICES...................................................7
   Section 4.3   PARKING...............................................................8
ARTICLE 5
   Utilities and Heating, Ventilating and Air Conditioning
   Section 5.1   CHARGES FOR UTILITIES.................................................9
   Section 5.2   HEATING, VENTILATING AND AIR CONDITIONING.............................10
ARTICLE 6
   Use of the Leased Premises
   Section 6.1   USE OF THE LEASED PREMISES............................................11
   Section 6.2   OBSERVANCE OF LAW.....................................................11
ARTICLE 7
   Insurance and Indemnity
   Section 7.1   TENANT'S INSURANCE....................................................12

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   Section 7.2   INCREASE IN INSURANCE PREMIUMS........................................14
   Section 7.3   CANCELLATION OF INSURANCE.............................................15
   Section 7.4   LOSS OR DAMAGE........................................................15
   Section 7.5   LANDLORD'S INSURANCE..................................................16
   Section 7.6   INDEMNIFICATION OF THE LANDLORD.......................................16

ARTICLE 8
   Maintenance, Repairs and Alterations
   Section 8.1   MAINTENANCE AND REPAIRS BY THE LANDLORD...............................17
   Section 8.2   MAINTENANCE AND REPAIRS BY THE TENANT.................................17
   Section 8.3   LANDLORD'S APPROVAL OF THE TENANT'S REPAIRS...........................18
   Section 8.4   REMOVAL AND RESTORATION BY THE TENANT.................................19
   Section 8.5   TENANT TO DISCHARGE ALL LIENS.........................................19
   Section 8.6   SIGNS AND ADVERTISING.................................................20
   Section 8.7   MEZZANINE.............................................................20
ARTICLE 9
   Damage and Destruction
   Section 9.1   DESTRUCTION OF THE LEASED PREMISES....................................21
   Section 9.2   DESTRUCTION OF THE BUILDING...........................................22
   Section 9.3   EXPROPRIATION.........................................................22
ARTICLE 10
   Transfer and Sale
   Section 10.1  TRANSFER..............................................................23
   Section 10.2  ASSIGNMENT BY LANDLORD................................................25
   Section 10.3  OPTION TO RENEW.......................................................25
   Section 10.4  RIGHT OF REFUSAL......................................................26
ARTICLE II
   Access and Alterations
   Section 11.1  RIGHT OF ENTRY........................................................27
ARTICLE 12
   Status Statement, Attornment and Subordination
   Section 12.1  STATUS STATEMENT......................................................27
   Section 12.2  SUBORDINATION AND ATTORNMENT..........................................28
ARTICLE 13
   Default
   Section 13.1  RIGHT TO RE-ENTER.....................................................29
   Section 13.2  RIGHT TO RELET........................................................32
   Section 13.3  EXPENSES..............................................................32
   Section 13.4  WAIVER OF EXEMPTION FROM DISTRESS.....................................32
   Section 13.5  LANDLORD'S RIGHTS.....................................................33
   Section 13.6  REJECTION OF TENANT'S REPUDIATION.....................................34
   Section 13.7  NO CONDONING OF DEFAULT...............................................34
ARTICLE 14
   Miscellaneous
   Section 14.1  RULES AND REGULATIONS.................................................35

<PAGE>

   Section 14.2  INTENT AND INTERPRETATION.............................................35
   Section 14.3  OVERHOLDING--NO TACIT RENEWAL.........................................36
   Section 14.4  TENANT PARTNERSHIP....................................................37
   Section 14.5  WAIVER................................................................37
   Section 14.6  ACCORD AND SATISFACTION...............................................37
   Section 14.7  FORCE MAJEURE.........................................................38
   Section 14.8  NOTICES...............................................................38
   Section 14.9  REGISTRATION..........................................................38
   Section 14.10 ACCRUAL OF BASIC RENT AND ADDITIONAL RENT.............................39
   Section 14.11 QUIET ENJOYMENT.......................................................39

SCHEDULE "A"
   LEGAL DESCRIPTION...................................................................40

SCHEDULE "B"
   FLOORPLAN...........................................................................41

SCHEDULE "C"
   LANDLORD'S WORK.....................................................................45

SCHEDULE "D"
   DEFINITIONS.........................................................................49
</TABLE>

<PAGE>

               THIS LEASE is dated the 10th day of December, 1999.

B E T W E E N:
                           707932 ONTARIO LIMITED

                           ("Landlord")

                                                              OF THE FIRST PART,

                           -and-

                           TUCOWS INTERNATIONAL CORPORATION

                           ("Tenant")

                                                             OF THE SECOND PART.

                                    ARTICLE I
                      LEASED PREMISES, TERM AND ACCEPTANCE
                             OF THE LEASED PREMISES

Section 1.1 LEASED PREMISES

     The Landlord leases to the Tenant, and the Tenant leases from the Landlord,
premises located on the ground floor of the Building municipally known as 78
Mowat Avenue, Toronto, Ontario, and shown in the approximate location outlined
in red on the plan attached as Schedule "B". It is acknowledged and agreed that
as of the date of this Lease, the Usable Area of the Leased Premises is
Seventeen Thousand Three Hundred and Eighty-Three (17,383) square feet and the
Rentable Area of the Leased Premises is Eighteen Thousand Four Hundred and
Twenty-Six (18,426) square feet. The Tenant acknowledges that the municipal
address of the Building may be changed and agrees to adjust all of the relevant
agreements between the parties to reflect this change. If the Leased Premises
are entirely self-enclosed, their boundaries extend (a) to the limits from which
the Rentable Area of the Leased Premises is measured, and (b) from the top
surface of the structural subfloor to the

                                       1
<PAGE>

bottom surface of the structural ceiling. If the Leased Premises have no
structural ceiling abutting the demising walls and are open to the ceiling or
the bottom surface of the structural ceiling of the Building, the boundaries of
the Leased Premises extend from the top surface of the structural subfloor to
the height of the demising walls. Common Areas and Facilities (including, but
not limited to, columns and walls that form part of the Common Areas and
Facilities) that are within the space enclosed by the boundaries of the Leased
Premises, do not form part of the Leased Premises, although any floor space
occupied by them is included in the Rentable Area of the Leased Premises.

Section 1.2 USE OF ADDITIONAL AREAS

     The Tenant's use of the Leased Premises includes the non-exclusive right of
the Tenant and persons having business with the Tenant in common with the
Landlord and all others entitled, to the use of the Common Areas and Facilities.

Section 1.3 GRANT AND TERM

     The Tenant shall, subject to the terms of this Lease, have and hold the
Leased Premises during the Term, which is the period of five (5) years beginning
on the date (the "Commencement Date") which is the earlier of:

     (a) January 1, 2000; or

     (b) the date on which the Tenant first begins to carry on business in the
Leased Premises;

and shall extend to and include the last day of the month preceding the month in
which occurs the fifth (5th) year anniversary of the Commencement Date. The
Landlord acknowledges and agrees that the Tenant shall have access and use of
the Leased Premises twenty-four (24) hours a day, seven(7) days a week
throughout the Term of the Lease and any renewals thereof.

Section 1.4 CONSTRUCTION OF LEASED PREMISES

     (a) The Landlord will complete the work designated as "Landlord's Work" in
Schedule "C" attached to this Lease no later than January 1, 2000. The Tenant
shall be granted joint access to the Leased Premises together with the
Landlord's contractors prior to

                                       2
<PAGE>

the Commencement Date beginning October 1, 1999 for the purpose of constructing
the Tenant's Leasehold Improvements in conjunction with the Landlord's Work
being performed, as defined herein and preparing the Leased Premises for its
intended use, and without material interruption from the Landlord or its
contractor, free from Basic and Additional Rent until the Commencement Date.
Notwithstanding the foregoing, the Tenant shall be responsible for all parking
and utility charges during this Fixturing Period.

     (b) The Tenant will examine the Leased Premises before taking possession
and unless the Tenant furnishes the Landlord with written notice specifying any
deficiencies or defects within ten (10) days after taking possession and ten
(10) days after completion of the Landlord's Work, the Tenant will be deemed to
have examined the Leased Premises and to have agreed that they are in good
order. There is no promise, representation or undertaking by or binding upon the
Landlord with respect to any alteration, remodelling or redecorating of, or
installation of equipment or fixtures in, the Leased Premises, unless expressly
set forth in this Lease.

     (c) If there is a delay which results in the Building or the Landlord's
Work not being completed by January 1, 2000, the Commencement Date will be
postponed by the number of days of the delay and this postponement will be the
Tenant's sole remedy and further the Tenant shall and does hereby release the
Landlord from all costs, expenses, claims, losses or damages suffered or
incurred as a result of such delay whether or not caused, or to the extent
contributed to, by the acts, omissions or negligence of the Landlord or those
for whom it is at law responsible.

                                    ARTICLE 2
                                      RENT

Section 2.1 COVENANT TO PAY

     The Tenant will pay Basic Rent and Additional Rent when due and payable as
set out in this Lease and without any set-off, deduction, abatement or demand.

                                       3
<PAGE>

Section 2.2 BASIC RENT

     The Tenant covenants and agrees to pay in equal consecutive monthly
instalments, in advance on the first day of each calendar month of each Rental
Year, to the Landlord, or as the Landlord may in writing direct, in lawful money
of Canada, without any set off, compensation or deduction whatsoever, Basic Rent
in each Lease Year comprised as follows:

                                         Basic Rent Per Square Foot of
         Year                          Rentable Area of Leased Premises
         ----                          --------------------------------
           1                                        $10.00
           2                                        $11.00
           3                                        $12.00
           4                                        $13.00
           5                                        $14.00

     The Tenant shall deliver to the Landlord at the beginning of each year of
the Term, a series of monthly post-dated cheques for such year of the Term for
the aggregate of the monthly payments of Basic Rent and of any payments of
Additional Rent established by the Landlord pursuant to this Lease and any other
payments required by this Lease to be paid monthly in advance.

Section 2.3 ADVANCE RENT

     The Landlord acknowledges receipt of Twenty-Five Thousand One Hundred and
Forty-Seven Dollars ($25,147.00) (the "Advance Rent"), to be held without
interest by the Landlord and applied on account of the Basic Rent and Additional
Rent first falling due under this Lease.

Section 2.4 SECURITY DEPOSIT

     The Landlord acknowledges receipt of Thirty-One Thousand Seven Hundred and
Fifty-Three Dollars ($31,753.00) (the "Security Deposit"), to be held without
interest by the Landlord throughout the Term, as security for the faithful
performance by the Tenant of all of the terms, covenants and conditions of this
Lease. The Security Deposit, or any part

                                       4
<PAGE>

thereof, may be applied by the Landlord to remedy any default of the Tenant
pursuant to this Lease and, if the Tenant is not in default or in breach of any
of the terms, covenants and conditions of this Lease, and provided the Leased
Premises are left in the condition required pursuant to this Lease, then the
balance of the Security Deposit, if any, shall be applied on account of the
Basic Rent and Additional Rent payable during the last month of the Term. If at
any time during the Term, the Security Deposit or any part thereof is applied by
the Landlord to remedy any default pursuant to the Lease, then the Tenant shall,
upon written demand of the Landlord, forthwith remit to the Landlord a
sufficient amount to restore the Security Deposit to the original sum deposited.

Section 2.5 FREE RENT

     The Tenant shall not be responsible for the payment of any Basic and
Additional Rent for the first three (3) months of the original Term. The Tenant
shall, however, be responsible for the payment of parking and utility charges as
defined herein and shall abide by all other terms and conditions of the Lease.

Section 2.6 RENT PAST DUE

     If the Tenant fails to pay any Rent when due, the unpaid amounts will bear
interest from the due date to the date of payment at an annual rate of five (5)
percentage points above the minimum lending rate charged to prime commercial
borrowers current at that time charged by the Landlord's chartered bank,
calculated per diem and compounded monthly.

                                    ARTICLE 3
                            TAXES AND OPERATING COSTS

Section 3.1 TAXES PAYABLE BY LANDLORD

     The Landlord will, subject to Sections 3.2 and 3.4 pay directly to the
taxing authority all Taxes. The Landlord may, nevertheless, defer payment of
Taxes to the fullest extent permitted by law, so long as it diligently
prosecutes any contest or appeal of Taxes.

                                       5
<PAGE>

Section 3.2 TAXES PAYABLE BY TENANT

     (a) The Tenant will pay to the Landlord, in accordance with Section 3.5,
its Proportionate Share of all Taxes allocated by the Landlord, acting
reasonably and equitably to the Building. If there is a separate tax bill and
assessment for taxes for the Leased Premises, the Tenant will, if the Landlord
requests, pay all taxes specified by that separate tax bill and assessment
directly to the taxing authority and its Proportionate Share of Taxes allocated
by the Landlord to the Common Areas and Facilities.

Section 3.3 BUSINESS TAXES AND OTHER TAXES OF THE TENANT

     The Tenant will pay to the lawful taxing authorities or to the Landlord, as
required by the relevant legislation, all business taxes, personal property
taxes, licence fees or other similar rates and assessments levied or assessed
against or in relation to the Tenant's business, assets, and improvements in the
Leased Premises.

Section 3.4 TENANT'S PROPORTIONATE SHARE OF OPERATING COSTS

     The Tenant will pay, in accordance with Section 3.5, the Tenant's
Proportionate Share of Operating Costs as defined in Schedule "D".

Section 3.5 PAYMENT OF TAXES AND OPERATING COSTS

     (a) The amounts payable by the Tenant under Sections 3.2 and 3.4 may be
estimated (and estimates may be revised) by the Landlord and the Tenant agrees
to pay the Landlord the Tenant's Proportionate Share as estimated, in monthly
instalments in advance, together with Basic Rent. Any amounts received by the
Landlord during any Rental Year after the Tenant has paid its full share of
Taxes for such Rental Year shall be credited against the Tenant's share of Taxes
for the subsequent Rental Year.

     (b) Within ninety (90) days after the end of the period for which the
estimated payments have been made, the Landlord will determine and advise the
Tenant of the exact amount of the Tenant's Proportionate Share of Taxes and
Operating Costs and if necessary, an adjustment will be made between the parties
within fifteen (15) days after the Tenant has been advised of the actual
amounts.

                                       6
<PAGE>

     (c) It is acknowledged and agreed that the 1999 Taxes and Operating Costs
shall not exceed Three Dollars and Ninety-Eight Cents ($3.98) per square foot.

                                    ARTICLE 4
                         BUILDING - CONTROL AND SERVICES

Section 4.1 CONTROL OF THE BUILDING

     (a) The Landlord will operate and maintain the Building as would a prudent
landlord of a similar building having regard to size, age and location.

     (b) The Building is at all times subject to the exclusive control,
management and operation of the Landlord. The Landlord, acting reasonably, has
the right with respect to such control, management and operation to: (i)
obstruct or close off all or any part of the Property for the purpose of
maintenance, repair or construction; (ii) employ all personnel necessary for the
operation and management of the Building; (iii) construct other improvements or
buildings and make alterations, additions, subtractions or re-arrangements,
build additional storeys and construct facilities adjoining or proximate to the
Building. The Landlord will use its best efforts to provide the Tenant with
reasonable prior notice of any exercise of such rights to the extent that it is
in the Landlord's reasonable control.

     (c) The Landlord is not subject to any liability, nor is the Tenant
entitled to any compensation or abatement of Rent as a result of the Landlord's
exercise of its rights conferred under Section 4.1 so long as the Landlord
proceeds as expeditiously as possible to minimize interference with the Tenant's
business.

Section 4.2 LANDLORD'S SERVICES

     The Landlord will make water and electricity available in the normal
quantities. If the Tenant's equipment requires utilities in excess of normal
quantities, facilities to supply the excess quantities will, if available, be
provided by the Landlord at the expense of the Tenant, with this expense payable
as Additional Rent. Notwithstanding the

                                       7
<PAGE>

foregoing, the Landlord shall, at the Landlord's expense and subject to Schedule
"C", furnish, install and maintain in good repair as of the Commencement Date
and during the Term to the boundary line of the Leased Premises, all gas, water,
telephone, electrical facilities, transformer and other utilities of such size
and type as may be reasonably required to provide adequate service for the
Leased Premises and only to the extent that the Landlord is required under
Schedule "C". The Landlord shall advise the Tenant whenever reasonably possible
to provide the Tenant an opportunity to have a representative present with the
Landlord or its representatives or the utility representative at such time as
the Landlord or its representatives or the utility representative may be
accessing any locations where any utilities serving the Leased Premises may be
connected. Regular meter readings to be excluded.

Section 4.3 PARKING

     The Landlord shall provide fifteen (15) parking spaces at the rate of Fifty
Dollars ($50.00) per space per month plus GST in Year One of the Term. The
Tenant shall have the right to at least fifteen (15) parking spaces during each
subsequent year of the Term and renewals thereof upon written notice to the
Landlord. The parking rental rate throughout the remainder of the Term shall be
determined by the Landlord, acting reasonably, and shall be based upon the costs
of operating the parking facilities. Additional spaces shall be on an
"availability basis". The location of the parking spaces shall be determined
from time to time by the Landlord but shall be within the area bounded by King
Street West, Mowat Avenue, Liberty Street and Dufferin Street. The Tenant
acknowledges that all cars parked may be required to display parking permits
provided by the Landlord and that the indemnification of the Landlord pursuant
to this Lease shall extend to the parking areas and surrounding walkways. Should
the Landlord implement a parking control card access system, the Tenant may be
required to provide a deposit (plus GST) for each parking space; said deposit to
be determined by the Landlord acting reasonably and to be returned to the
Tenant, without interest, upon the surrender of the parking control card. The
Landlord shall not be responsible for policing the parking areas and shall not
be liable for any failure to provide parking if the spaces are occupied by
persons not authorized to park there but shall respond to the Tenant's
complaints, if any, and attempt to alleviate any problems that may exist. In
addition to parking as described above, the Landlord shall provide for the
Tenant's use ten (10) parking spaces on a month-to-month basis subject to
availability at the initial rate of

                                       8
<PAGE>

Fifty Dollars ($50.00) per space per month plus GST for a minimum period of one
(1) year following the Commencement Date and thereafter, subject to
availability.

                                    ARTICLE 5
                             UTILITIES AND HEATING,
                        VENTILATING AND AIR CONDITIONING

Section 5.1 CHARGES FOR UTILITIES

     (a) If there are separate meters (other than check meters installed
pursuant to Section 5.1(d) for the Leased Premises), the Tenant will pay the
cost of Utilities (as defined below) and all related charges directly to the
Utility suppliers on the basis of the separate meters in a timely manner.

     (b) If there are no separate meters for the Leased Premises, the Tenant
will pay to the Landlord, or as the Landlord otherwise directs, as Additional
Rent, the aggregate, without duplication, of all electricity, water, steam
charges and other utility charges applicable to the Leased Premises on the basis
of the Tenant's Proportionate Share of such utility charges together with an
administration fee of fifteen percent (15%) of the cost of such Utilities (the
"Utilities").

     Charges for Utilities will be paid in equal monthly instalments in advance
on the basis of an initial rate determined by the Landlord or its engineers.
Upon receipt of any specific invoices from the Landlord, the Tenant shall remit
the invoiced amount to the Landlord within five (5) business days of receipt of
such invoice. If the public utility rate is increased or decreased during the
Term, the charges will be equitably adjusted and the decision of the Landlord,
acting reasonably, will be final. The Tenant will in addition pay for all costs
of supplying Utilities to the Leased Premises after Normal Business Hours as
determined by the Landlord or its engineers.

                                       9
<PAGE>

     (c) The Tenant will have the obligation, at its sole expense, to attend to
the replacement of electric light bulbs, tubes and ballasts in the Leased
Premises throughout the Term.

     (d) The Tenant shall pay for the cost of any metering which the Tenant
requests the Landlord to install in the Leased Premises or the Building, or
which the Landlord wishes to install in the Building, for the purpose of
assisting in determining the consumption of any Utility (including electricity
and water) in the Leased Premises.

Section 5.2 HEATING, VENTILATING AND AIR CONDITIONING

     The Tenant will operate and regulate those portions of the heating,
ventilating, and air conditioning equipment within and serving the Leased
Premises so as to maintain such reasonable conditions of temperature and
humidity within the Leased Premises as are determined by the Landlord and its
Architect and engineers so that no direct or indirect appropriation of the
heating, ventilating and air conditioning from the other portions of the
Building occurs. The Tenant shall comply with such stipulations and with all
Rules and Regulations of the Landlord pertaining to the operation and regulation
of such equipment. The Tenant shall immediately notify the Landlord in the event
that any repairs are required to the heating, ventilating and air conditioning
equipment serving the Leased Premises and shall reimburse the Landlord as part
of its Proportionate Share of Operating Costs for the cost of any maintenance,
repairs or replacements made by the Landlord in respect of the heating,
ventilating and air conditioning equipment serving the Leased Premises. The
Landlord acknowledges that the Tenant shall not be responsible for the cost of
capital repairs and capital replacements in respect of the heating, ventilating
and air conditioning equipment serving the Leased Premises provided that such
capital repairs and capital replacements are not necessitated by the Tenant's
incorrect or negligent use of equipment. The Tenant shall not under any
circumstances go onto the roof of the Building or make any maintenance repairs
or replacements to the heating, ventilating and air conditioning systems in the
Building without the prior written consent of the Landlord. If the Tenant fails
to comply with such stipulations and Rules and Regulations, the Landlord shall
be entitled to take such steps as it deems advisable to correct such defaults
(including, without limitation, entering upon the Leased Premises and assuming
control of such equipment) without liability to the

                                       10
<PAGE>

Tenant, and the Tenant will pay to the Landlord forthwith upon demand as
Additional Rent all costs and expenses incurred by the Landlord in so doing. The
Landlord represents and warrants to the Tenant that the heating, ventilating and
air conditioning equipment serving the Leased Premises and required to be
installed by the Landlord pursuant to Schedule "C" is and will be at the
Commencement Date in good working order and condition.

                                    ARTICLE 6
                           USE OF THE LEASED PREMISES

Section 6.1 USE OF THE LEASED PREMISES

     The Leased Premises will be used solely for general office space from which
the Tenant will carry on the business of digital distribution and commerce and
for no other purpose. The Tenant covenants that the use set out herein shall, on
the date possession of the Leased Premises is delivered to the Tenant, comply
with all applicable zoning and building by-laws.

Section 6.2 OBSERVANCE OF LAW

     The Tenant will, at its expense, and subject to Section 8.3:

     (a)  except with respect to anything contemplated under the Landlord's
          Work, comply with all provisions of law and other requirements of all
          governmental bodies which pertain to or affect the Leased Premises or
          require or govern the making of any repairs, alterations or other
          changes of or to the Leased Premises or the Tenant's use of it;

     (b)  obtain all necessary permits, licences and approvals relating to the
          use of the Leased Premises and the conduct of business therein,
          including, without limitation, those required under the Business
          Corporations Act (Ontario) and the Investment Canada Act; and

                                       11
<PAGE>

     (c)  co-operate with the Landlord in, and comply with the Landlord's
          request and with all laws and orders relating to the conservation
          energy serving the Building.

                                    ARTICLE 7
                             INSURANCE AND INDEMNITY

Section 7.1 TENANT'S INSURANCE

     (a) The Tenant will, at its expense, maintain in the names of the Tenant,
the Landlord and the Mortgagee as their respective interests may appear, the
following insurance:

          (i)  "All Risks of Direct Physical Loss or Damage" insurance including
               flood and earthquake coverage, sprinkler leakages and water
               damages of any kind, in an amount equal to the full replacement
               cost of property of every description and kind owned by the
               Tenant, or for which the Tenant is legally liable, or installed
               by or on behalf of the Tenant, and which is located within or on
               the Building or the Real Property, including, without limitation,
               the Tenant's inventory and stock-in-trade, leasehold
               improvements, furniture and fixtures, plate glass, store front
               and such other property either forming part of the Leased
               Premises (not being property which the Landlord is bound to
               insure) and including additional perils supplementary contract
               including sprinkler leakages and water damage of any kind;

          (ii) Business interruption insurance including rental income coverage
               in such amount and for such risks as would be carried by prudent
               tenants, but at least against the perils set out in Section
               7.1(a)(i) above;

                                       12
<PAGE>

         (iii) Comprehensive General Liability Insurance, to include personal
               injury liability, contractual liability, employers' liability,
               non-owned automobile liability and owners' and contractors'
               protective insurance coverage. The policies will (1) be written
               on a comprehensive basis with inclusive limits of not less than
               $5,000,000.00 for bodily injury to any one or more Persons, or
               property damage, and such higher limits as the Landlord, acting
               reasonably, or the Mortgagee requires from time to time; and (2)
               contain a severability of interests and cross-liability clauses;

          (iv) Tenant's "all risks" legal liability insurance for the full
               replacement cost value of the Leased Premises;

          (v)  any other forms of insurance as the Landlord, acting reasonably,
               or the Mortgagee requires from time to time.

     (b) The Tenant's policies will:

          (i)  where applicable, contain the Mortgagee's standard mortgage
               clause and contain a waiver of subrogation rights which the
               Tenant's insurers may have against the Landlord and those for
               whom the Landlord is in law responsible, whether the damage is
               caused by the act, omission or negligence of the Landlord or
               those for whom the Landlord is in law responsible;

          (ii) be taken out with insurers reasonably acceptable to the Landlord
               and in a form reasonably satisfactory to the Landlord;

         (iii) be non-contributing with and apply only as primary and not as
               excess to any other insurance available to the Landlord;

                                       13
<PAGE>

          (iv) not be invalidated as respects the interests of the Landlord and
               the Mortgagee by reason of any breach or violation of any
               warranties, representations, declarations or conditions contained
               in the policies; and

          (v)  contain an undertaking by the insurers to notify the Landlord and
               the Mortgagee in writing not less than thirty (30) days prior to
               any material change, cancellation or termination.

     The Tenant agrees that certificates of insurance in a form acceptable to
the Landlord or copies of its policies, if requested, will be delivered to the
Landlord within thirty (30) days after the placing of the required insurance.

     (c) If there is damage or destruction to the leasehold improvements in the
Leased Premises, the Tenant will use the insurance proceeds for the sole purpose
of repairing or restoring them. If there is damage to or destruction of the
Building entitling the Landlord to terminate this Lease under Section 9.2, then,
if the Leased Premises have also been damaged or destroyed, the Tenant will pay
the Landlord all of its insurance proceeds relating to the leasehold
improvements (other than furniture, equipment and similar items) less the
unamortized value of any leasehold improvements which have been installed at the
Tenant's sole expense.

Section 7.2 INCREASE IN INSURANCE PREMIUMS

     If, other than the permitted use of the Leased Premises as set forth in
this Lease, (a) the occupancy of the Leased Premises; (b) the conduct of
business in the Leased Premises; or (c) any acts or omissions of the Tenant in
the Leased Premises or in any other part of the Building, results in any
increase in premiums for the insurance carried by the Landlord with respect to
any part of the Building, the Tenant will pay the increase in premiums within
five (5) days after invoices for additional premiums are rendered by the
Landlord.

                                       14
<PAGE>

Section 7.3 CANCELLATION OF INSURANCE

     If any insurance policy in respect of any part of the Building is cancelled
or threatened by the insurer to be cancelled, or the coverage reduced by the
insurer by reason of the use and occupation of the Leased Premises except for
the permitted use as set forth in this Lease and if the Tenant fails to remedy
the condition giving rise to cancellation, threatened cancellation or reduction
of coverage within seventy-two (72) hours after notice by the Landlord, the
Landlord may, at its option, either (a) exercise its rights of re-entry
including termination under Article 13, or (b) at the Tenant's expense, enter
upon the Leased Premises and remedy the condition giving rise to the
cancellation, threatened cancellation or reduction.

Section 7.4 LOSS OR DAMAGE

     The Landlord is not liable for any death or personal or consequential
injury of any nature whatsoever that may be suffered or sustained by the Tenant
or any employee, agent or customer of the Tenant or any other person who may be
upon the Leased Premises or for any loss of or damage or injury to any property
belonging to the Tenant or to its employees or to any other person which such
property is on the Leased Premises, unless any such death, injury, loss or
damage results from the wilful negligence of the Landlord, its agents, servants
or employees or others for whom the Landlord may be in law responsible and, in
particular (but subject to and without limiting the generality of the foregoing)
the Landlord shall not be liable for any damage or damages of any nature
whatsoever to any such property caused by reason of a breakdown or other failure
to supply adequate drainage, snow or ice removal, or by reason of the
interruption of any public utility or service or in the event of steam, water,
rain or snow which may leak into, issue, or flow from any part of the Real
Property or from the water, steam, sprinkler, or drainage pipes or plumbing
works of the same, or from any other place or for any damage caused by anything
done or omitted by any tenant, nor shall the Tenant be entitled to any abatement
of Rent in respect of any such condition, failure or interruption of service.
The Landlord shall use all reasonable diligence to remedy such condition,
failure or interruption of service, after notice of same, when it is within its
power and obligation so to do. The Landlord acknowledges that the uninterrupted
supply of utilities to the Leased Premises is critical for the Tenant's business
and that the Landlord will also use all reasonable efforts to avoid causing any
interruption of such supply to the Leased Premises.

                                       15
<PAGE>

Section 7.5 LANDLORD'S INSURANCE

     The Landlord shall at all times throughout the Term carry insurance on the
Building considered advisable by the Landlord and its Mortgagee and as would be
carried by a prudent owner of a similar building. Notwithstanding the Landlord's
covenant and the Tenant's contribution to the cost of the Landlord's insurance
premiums, the Tenant has no right to receive proceeds from the Landlord's
insurance policies. The Landlord agrees that all insurance carried by it on the
Building or any part thereof shall contain a waiver of subrogation, if available
from the Landlord's insurer, by the insurer against the Tenant and against those
for whom the Tenant is in law responsible. The Tenant agrees that it shall be
responsible for the additional cost, if any, of obtaining the waiver of
subrogation subject to the Tenant's right to decline to pay such amount within
five (5) days following notice from the Landlord in which case the Landlord
shall not be obliged to obtain such waiver in respect of such insurance policy.

Section 7.6 INDEMNIFICATION OF THE LANDLORD

     The Tenant will indemnify the Landlord and save it harmless from and
against all loss (including loss of rentals), claims, actions, damages, costs,
liability and expense in connection with loss of life, personal injury, damage
to property (including and improvements) or any other loss or injury arising
from or out of this Lease, or any occurrence in the Building, or the Tenant's
occupancy of the Leased Premises or the Building, or occasioned wholly or in
part by any act or omission of the Tenant or by anyone permitted to be on the
Leased Premises or the Building by the Tenant unless due to the wilful
negligence of the Landlord or those for whom in law it is responsible. If the
Landlord is, without fault on its part, made a party to any litigation commenced
by or against the Tenant, then the Tenant will protect, indemnify and hold the
Landlord harmless and pay all expenses and reasonable legal fees incurred or
paid by the Landlord in connection with the litigation. The Tenant will also pay
all costs and legal fees (on a solicitor and his client basis) that may be
incurred or paid by the Landlord in enforcing the terms, covenants and
conditions in this Lease.

                                       16
<PAGE>

                                    ARTICLE 8
                      MAINTENANCE, REPAIRS AND ALTERATIONS

Section 8.1 MAINTENANCE AND REPAIRS BY THE LANDLORD

     The Landlord will maintain and repair the structure of the Building,
including, without limitation, the foundations, exterior wall assemblies
including weather walls, subfloor, roof, bearing walls, and structural columns
and beams of the Building and the mechanical, electrical, heating, ventilating
and air conditioning systems and other base building systems of the Building, as
would a prudent owner of a similar building. The cost of this (except for
repairs or maintenance of inherent structural defects or weaknesses and except
for the Landlord's Work and costs of a capital nature) will be included in
Operating Costs. However, if the Landlord is required, due to the business
carried on by the Tenant, to make structural repairs or replacements by reason
of the application of laws, ordinances or other regulations of any governmental
body after the Commencement Date, or by reason of any act, omission or default
of the Tenant or those for whom the Tenant is in law responsible, then the
Tenant will be liable for the total cost of those repairs or replacements plus
fifteen percent (15%) of the total cost representing the Landlord's overhead.

Section 8.2 MAINTENANCE AND REPAIRS BY THE TENANT

     (a) The Tenant will at all times, at its expense, maintain the whole of the
Leased Premises including without limitation, electrical, lighting, wiring,
plumbing fixtures and equipment within or exclusively serving the Leased
Premises as would a prudent owner of similar Leased Premises having regard to
size, age and location of the building, and the Tenant will make all needed
repairs and replacements with due diligence and dispatch. The Tenant will
provide its own janitorial services within the Leased Premises, at its sole cost
and expense. Notwithstanding anything contained in this Lease, if any such
repairs or replacements to the Leased Premises or to any Leasehold Improvements
installed by or on behalf of the Tenant in the Leased Premises, affect the
Structure of the Building, such work shall be performed only by the Landlord at
the Tenant's sole cost and expense. Upon completion thereof, the Tenant shall
pay to the Landlord, as Additional Rent within five (5) days after demand, both
the Landlord's costs relating to such repairs or replacements including the fees
of any architectural and engineering consultants plus a sum equal to fifteen

                                       17
<PAGE>

percent (15%) of the total cost hereof representing the Landlord's overhead and
administrative costs.

     (b) The Tenant will pay for the cost of replacement of glass broken on the
Leased Premises including outside windows and doors of the perimeter of the
Leased Premises.

     (c) At the expiration or earlier end of the Term, the Tenant will surrender
the Leased Premises to the Landlord in as good a condition as the Tenant is
required to maintain them throughout the Term.

Section 8.3 LANDLORD'S APPROVAL OF THE TENANT'S REPAIRS

     The Tenant will not make any repairs, alterations, replacements,
decorations or improvements ("Alterations") to any part of the Leased Premises
without first obtaining the Landlord's written approval. Subject to the
foregoing, the Tenant may at any time and from time to time, at its sole
expense, paint and decorate the interior of the Leased Premises as will, in the
judgement of the Tenant, better adapt the Leased Premises for the purpose of its
business; provided, however, that no changes, alterations, additions or
improvements to the structure, any perimeter wall, the windows, the sprinkler
system, the heating, ventilating, air conditioning, plumbing, electrical or
mechanical equipment or the floor or the ceiling shall be made without the prior
written consent of the Landlord and also provided that the Tenant will not,
under any circumstance whatsoever, paint or cover any "sandblasted" wood or
brick surfaces. All changes, alterations, additions and improvements, whether
structural or otherwise, shall comply with all applicable statutes, regulations
or by-laws of any municipal, provincial or other governmental authority. The
Tenant shall pay to the Landlord the amount of the increase for any insurance
coverage and/or municipal realty taxes to the extent that such increase is
directly attributable to any action by the Tenant under this Article, and the
Tenant covenants that such insurance shall not thereby be made liable to
avoidance or cancellation by the insurer by reason of such changes, alterations,
additions or improvements.

     Any Alterations made by the Tenant without the prior consent of the
Landlord or not made in accordance with the specifications approved by the
Landlord will, if requested by the Landlord, be promptly removed by the Tenant
at the Tenant's expense.

                                       18
<PAGE>

     If, however, the proposed Alterations or any of them affect the structure
or any of the electrical, mechanical or other base building systems of any part
of the Building, the Alterations (or the appropriate portion of them) will be
performed only by the Landlord, at the Tenant's expense, plus fifteen percent
(15%) of the total cost representing the Landlord's overhead.

Section 8.4 REMOVAL AND RESTORATION BY THE TENANT

     (a) All alterations, decorations, additions and improvements made by the
Tenant, or made by the Landlord on the Tenant's behalf (other than the Tenant's
trade fixtures) immediately become the property of the Landlord upon affixation
or installation and will not be removed from the Leased Premises at any time
unless permitted by the Landlord. Without limiting the generality of the
foregoing, the Tenant acknowledges that all leasehold improvements including
flooring, electrical fixtures, cupboards, hardware and any other fixture or
improvement which the Landlord may provide with the Leased Premises, is the
exclusive property of the Landlord and shall be maintained by the Tenant in the
same manner as would a careful owner and shall be preserved and left intact by
the Tenant at the expiration or earlier termination of the Term. The Tenant
will, at the expiration, at its cost, remove all of its trade fixtures , and
leave the Leased Premises in a broomswept and tidy condition.

     (b) If the Tenant does not remove its trade fixtures at the end of the
Term, the trade fixtures will, at the Landlord's option become the property of
the Landlord and may be removed from the Leased Premises and sold or disposed of
any the Landlord in such manner as it deems advisable.

Section 8.5 TENANT TO DISCHARGE ALL LIENS

     If any construction or similar lien or encumbrances is made, filed or
registered against title to the Building (or part of it) or against the Tenant's
leasehold interest, as a result of any work, materials or services supplied or
performed by or on behalf of the Tenant or otherwise in respect of the Leased
Premises, the Tenant will immediately discharge it at the Tenant's expense. If
the Tenant fails to discharge the lien within ten (10) business days after it is
registered, then, in addition to any other right or remedy of the Landlord, the

                                       19
<PAGE>

Landlord may elect to discharge the lien by paying the amount claimed to be due,
and any additional amounts as may be required at law or otherwise, into Court or
directly to the lien claimant and the amount paid by the Landlord and all costs
and expenses including all solicitor's fees incurred as a result of the lien
including without limitation procuring its discharge plus interest at the rate
of three (3) percentage points will be immediately paid by the Tenant to the
Landlord.

Section 8.6 SIGNS AND ADVERTISING

     The Tenant will not place or permit any notice, lettering or other signage
on any part of the outside of the Building or in the interior of the Leased
Premises which is visible from the outside of the Building or the Leased
Premises without the Landlord's prior written consent, which consent may be
unreasonably withheld. Notwithstanding the foregoing, subject to approval which
may not be unreasonably withheld in respect of the first sign affixed pursuant
to this Section 8.6, the Tenant may affix a single sign on the exterior of the
Building with maximum dimensions of ten (10) feet by ten (10) feet or a single
sign with a maximum diameter of ten (10) feet above the entrance of the Leased
Premises. The modifications or replacements of the first sign. At the expiration
of this Lease, the Tenant will remove all signs, pictures, advertisements,
notices, or letterings from the Leased Premises at the Tenant ' s expense and
will promptly repair all damages caused by its installation and removal.

Section 8.7 MEZZANINE

     The Tenant acknowledges that if it elects to erect a mezzanine at any time
during the Term or the renewal hereof within the Leased Premises, the Rentable
Area of the Leased Premises shall be amended to include the area of the
mezzanine. The Tenant further acknowledges that the Landlord shall have the
option, but will not be obligated, to construct a mezzanine at the Tenant's sole
cost plus administration fees.

                                       20
<PAGE>

                                    ARTICLE 9
                             DAMAGE AND DESTRUCTION

Section 9.1 DESTRUCTION OF THE LEASED PREMISES

     (a) If the Leased Premises are destroyed or damaged as a result of fire or
other casualty, then if:

          (i)  the Leased Premises are rendered wholly or partially
               untenantable, this Lease will continue in effect and the Landlord
               will commence diligently to restore the Leased Premises to the
               extent only of the Landlord's Work set out in the Schedule
               attached as Schedule "C", and only Basic Rent (but not Additional
               Rent) will abate entirely or proportionately, as the case may be,
               to the portion of the Leased Premises rendered untenantable from
               the date of the destruction or damage until the Landlord has
               completed its restoration work; or

          (ii) the Leased Premises are not rendered untenantable in whole or in
               part, this Lease will continue in effect, the Rent and other
               amounts payable by the Tenant will not abate and the Landlord
               will commence diligently to restore the Leased Premises to the
               extent required by this Section 9.1(a).

     (b) Notwithstanding Section 9.1(a), if the Leased Premises are damaged or
destroyed by any cause whatsoever, and if, in the opinion of the Landlord
reasonably arrived at, the Leased Premises cannot be rebuilt or made fit for the
purposes of the Tenant within ninety (90) days of the damage or destruction, the
Landlord, instead of rebuilding or making the Leased Premises fit for the Tenant
in accordance with Section 9.1(a) may, at its option, or the Tenant at its
option may, elect to terminate this Lease by giving the Tenant or the Landlord,
as the case may be, within thirty (30) days after the damage or destruction,
notice of termination, and thereupon Rent will be apportioned and paid to the
date of damage or destruction.

     (c) Once the Landlord has substantially completed its restoration work the
Landlord will forthwith notify the Tenant to that effect and, the Tenant will
complete all

                                       21
<PAGE>

work required to fully restore the Leased Premises for business. Nothing in this
Section 9.1 requires the Landlord to rebuild the Leased Premises in the
condition and state that existed before the damage, but the Leased Premises, as
rebuilt, will have reasonably similar facilities and services to those in the
Leased Premises prior to the damage.

Section 9.2 DESTRUCTION OF THE BUILDING

     (a) Notwithstanding Section 9.1, if twenty-five percent (25%) or more of
the total Rentable Area of the Building is damaged or destroyed (irrespective of
whether the Leased Premises are damaged or destroyed) and if, in the opinion of
the Landlord reasonably arrived at, the damaged or destroyed parts of the
Building cannot be rebuilt or made fit for the purposes of the respective
tenants of the space within ninety (90) days of the damage or destruction, then,
the Landlord or the Tenant may, at its option (to be exercised by written notice
to the Tenant or the Landlord, as the case may be, within sixty (60) days
following the occurrence), elect to terminate this Lease sixty (60) days
following such notice. All Rent will be payable without reduction or abatement
subsequent to the destruction or damage and until the date of termination,
unless the Leased Premises has been destroyed or damaged as well, in which event
Section 9.1 will apply.

     (b) If any part of the Building is destroyed or damaged and the Landlord
does not elect to terminate this Lease, the Landlord will commence diligently to
restore the Building, but only to the extent of the Landlord's responsibilities
pursuant to the terms of the various leases for the premises in the Building,
and exclusive of any tenant's responsibilities set out therein. If the Landlord
elects to restore the Building, the Landlord may restore according to plans and
specifications and working drawings other than those used in the original
construction of the Building.

Section 9.3 EXPROPRIATION

     Both the Landlord and the Tenant agree to co-operate with the other
regarding an expropriation of the Leased Premises or the Building or any part
thereof, so that each may receive the maximum award to which they are
respectively entitled at law. To the extent that any portion of the Building
other than the Leased Premises is expropriated, then, the full proceeds accruing
or awarded as a result will belong to the Landlord and the Tenant

                                       22
<PAGE>

will abandon or assign to the Landlord any rights which the Tenant may have or
acquire by operation of law to those proceeds or awards and will execute all
such documents as in the opinion of the Landlord are necessary to give effect to
this intention.

                                   ARTICLE 10
                                TRANSFER AND SALE

Section 10.1 TRANSFER

     Despite any statutory provisions to the contrary, the Tenant shall have the
right at any time or times during the Term to sublet or assign the Leased
Premises or the Lease, as the case may be, in whole or in part subject to the
Landlord's consent in writing which consent shall not be unreasonably withheld
or delayed; provided, however, such consent to sublet or assign shall not
relieve the Tenant from its obligations to pay rent and to fully observe and
perform the Tenant's covenants according to the terms of this Lease unless it
is specifically so agreed by the Landlord who shall be under no obligation
whatsoever to agree to any request by the Tenant for release from its covenants
and obligations. It will not be deemed unreasonable for the Landlord to consider
any or all of the following factors before granting or withholding its consent:

          (a)  any covenants made by the Landlord with other tenants or proposed
               tenants of the Building;

          (b)  the financial background, status and business history of the
               proposed subtenant or assignee;

          (c)  whether the subtenant or assignee is at that time a tenant or
               occupant in the Building; (d) whether the subtenant or assignee
               is proposing to change in any way the use to which the Leased
               Premises will be put. No such consent to an

                                       23
<PAGE>

               assignment or sublease shall be valid unless within ten (10) days
               after the execution thereof, the Tenant shall deliver to the
               Landlord:

                    i)   a true copy of such assignment duly executed by the
                         Tenant which must disclose any and all monetary
                         payments or other consideration made or to be made;

                    ii)  an instrument, in form satisfactory to the Landlord but
                         in accordance with the provisions of the Lease, in the
                         case of an assignment, duly executed by the assignee
                         wherein such assignee shall assume the Tenant's
                         obligations pursuant to this Lease and, in the case of
                         a sublease, duly executed by the subtenant wherein such
                         subtenant agrees not to do anything which would result
                         in a breach by the Tenant of its obligations under this
                         Lease;

                    iii) payment of the sum of $1,000.00 to the Landlord on
                         account of the Landlord's legal and other expenses
                         incurred in connection with the sublease or assignment;

                    iv)  in the event of any subletting by the Tenant by virtue
                         of which the Tenant receives a rental in the form of
                         cash, goods, services or other consideration from the
                         subtenant which is higher than the rental payable
                         hereunder to the Landlord, the Tenant shall pay to the
                         Landlord seventy-five percent (75%) of any such excess
                         to the Landlord in addition to all rentals and other
                         costs payable hereunder, and such excess for the period
                         of time during which the said Subtenant remains in
                         possession of the premises sublet to it. If the Tenant
                         herein shall receive from any assignee of the Lease,
                         either directly or indirectly, any consideration for
                         the assignment of the Lease, either in the form of
                         cash, goods, or services, the Tenant shall forthwith
                         pay to the Landlord an amount equivalent to
                         seventy-five percent (75%) of any such consideration.
                         In determining whether the Tenant receives from the
                         subtenant a rental which is higher than the rental
                         payable hereunder to the Landlord or a consideration
                         for

                                       24
<PAGE>

                         the assignment of the Lease, there shall be deducted
                         from any excess rental or consideration otherwise
                         determined any reasonable costs or expenses of the
                         Tenant in completing the subletting or assignment
                         transaction and any costs or expenses incurred by the
                         Tenant in performing the Tenant' s Work and the
                         unamortized costs and expenses of any other leasehold
                         improvements paid for by the Tenant. All costs must
                         have third party paid invoices or other reasonable
                         evidence thereof presented to the Landlord before any
                         deduction is permitted.

Notwithstanding the foregoing or anything else contained herein, the Landlord
acknowledges and agrees that the Tenant (when it is not materially in default)
may, from time to time, without the Landlord's consent but upon prior written
notice to the Landlord assign the Lease and/or sublease all or part of the
Leased Premises to: (a) an affiliate or associate (as defined in the Business
CORPORATIONS ACT (Ontario), of Tucows International Corporation; (b) a
corporation with which the Tenant amalgamates as part of a bona fide corporate
reorganization of the Tenant; or (c) a bona fide lender to the Tenant or
affiliate of the Tenant. Provided that in each instance, the Tenant and the
Assignee or Sublessee shall otherwise comply with the provisions of clauses
10.1(i) (excluding particulars of monetary or other consideration) and 10.1(ii)
above.

Section 10.2 ASSIGNMENT BY LANDLORD

     If there is a sale, lease or other disposition by the Landlord of the
Building or any part thereof, or the assignment by the Landlord of this Lease or
any interest of the Landlord hereunder, and to the extent that the purchaser or
assignee assumes the covenants and obligations of the Landlord hereunder, the
Landlord will, thereupon and without further agreement, be relieved of all
further liability with respect to its covenants and obligations.

Section 10.3 OPTION TO RENEW

     If the Tenant:

          1)   is not then in material default under the Lease; and

                                       25
<PAGE>

          2)   gives the Landlord not less than nine (9) and not more than
               twelve (12) months' written notice prior to the expiration of the
               initial Term of the Tenant's intention to renew the Term;

then the Tenant shall have the right to renew the Term of this Lease upon the
expiry of the initial Term for a period of five (5) years on the same terms and
conditions as set out in the initial term except that:

          i)   there shall be no further right to renew;

          ii)  the Landlord shall have no obligation to pay to the Tenant any
               Tenant's allowance or do or perform any Landlord's Work in, on,
               to or for the Leased Premises; and

         iii) the Basic Rent payable by the Tenant to the Landlord shall be the
               fair market rental for the Leased Premises at such time but in no
               event shall it be less than the annual Basic Rent payable during
               the last year of the original Term.

All other payments upon the part of the Tenant to be made in this Lease shall
continue to be made during such renewal Term. In the event that the Landlord and
the Tenant do not reach agreement on the rental to be paid for the renewal Term
within three (3) months from the date of the notice from the Tenant, the option
to renew shall be null and void.

Section 10.4 RIGHT OF REFUSAL

     At any time during the Term or renewal thereof, the Tenant shall be
entitled to give notice to the Landlord in writing that it requires additional
space. From the date of receipt of such notice until the earlier of:

          (a)  the Tenant withdrawing such notice; or

          (b)  the expiration of the Term (including the renewal period, if
               exercised), the Tenant shall have the option to rent space in the
               Building. The Landlord shall notify the Tenant in writing when
               space will be vacant and the Tenant shall advise the Landlord in
               writing within five (5) business days after receipt of the
               Landlord's notice, whether it wishes to rent said space. If the
               Tenant fails to advise the Landlord in writing within five (5)
               business days then the Tenant's right of refusal shall be null
               and void. The Tenant shall be entitled to rent additional space
               on the same terms and conditions as this Lease including rights
               of renewal and Rent.

                                       26
<PAGE>

                                   ARTICLE 11
                             ACCESS AND ALTERNATIONS

Section 11.1 RIGHT OF ENTRY

     The Landlord and its agents have the right to enter the Leased Premises at
all reasonable times upon reasonable prior notice, where possible, (except in
the event of an emergency, when the Landlord can enter at any time and excluding
regular periodic service and maintenance of equipment located within the Leased
Premises contracted for by the Landlord and for which the Landlord receives no
advance notice) to show them to prospective purchasers, lessees or mortgagees,
and to examine them and make repairs, alterations or changes to the Leased
Premises or the Building as the Landlord considers necessary including, without
limitation, repairs, alterations or changes to the pipes, conduits, wiring,
ducts and other installations in the Leased Premises where necessary to serve
another part of the Building. For that purpose, the Landlord may take all
required material into the Leased Premises and may have access to the ducts and
access panels to mechanical shafts and the Landlord has the right to check,
calibrate, adjust and balance controls and other parts of the heating,
ventilating and air conditioning. The Rent will not abate while any repairs,
alterations or changes are being made due to loss or interruption of the
business of the Tenant or otherwise, and the Landlord will not be liable for any
damage, injury or death caused to any Person, or to the property of the Tenant
or of others located on the Leased Premises as a result of the entry provided
that in all such events the Landlord takes reasonable steps to minimize the
disruption to the Tenant's business in the Leased Premises.

                                   ARTICLE 12
                 STATUS STATEMENT, ATTORNMENT AND SUBORDINATION

Section 12.1 STATUS STATEMENT

     Within ten (10) days after written request by the Landlord, the Tenant will
deliver in a form supplied by the Landlord, a status statement or a certificate
to any proposed purchaser, assignee, lessor or mortgagee, or to the Landlord,
which will contain such

                                       27
<PAGE>

acknowledgements and information, to the best of the Tenant's knowledge and
belief, as is customarily called for in status statements and estoppel
certificates delivered in conjunction with commercial tenancies.

Section 12.2 SUBORDINATION AND ATTORNMENT

     (a) The Landlord shall use its reasonable and best efforts to obtain a
non-disturbance agreement in favour of the Tenant from the holder of any
Encumbrance on the Building in the Encumbrancer's usual form. Subject to the
Tenant receiving a non-disturbance agreement referred to in the first sentence
of this Section 12.2 from the holder of the Encumbrance, this Lease and the
Tenant's rights hereunder are, and will at all times be, subordinate to all
ground or underlying leases, mortgages, trust deeds or the charge or lien
resulting from, or any instruments of, any financing, refinancing or collateral
financing (collectively, an "Encumbrance") or any renewals or extensions thereof
from time to time in existence against the Building or any part thereof. Upon
request, the Tenant will subordinate this Lease in such form as the Landlord
requires to any Encumbrance and, if requested, the Tenant will attorn to the
holder of the Encumbrance so long as in each case the Encumbrancer enters into a
non-disturbance agreement as referred to in the first sentence of this Section
12.2 (a) in favour of the Tenant. The Tenant agrees that it shall be responsible
for the Encumbrancer's reasonable costs of obtaining a non-disturbance
agreement, if any.

     (b) The Tenant will, so long as the Encumbrancer enters into a
non-disturbance agreement as referred to in the first sentence of this Section
12.2 (a) in favour of the Tenant, if possession is taken under, or any
proceedings are brought for possession under or the foreclosure of, or in the
event of the exercise of the power of sale under any Encumbrance, attorn to the
Encumbrancer or the purchaser upon any such foreclosure, sale or other
proceeding and recognize the Encumbrancer or the purchaser as the Landlord under
this Lease.

                                       28
<PAGE>

                                   ARTICLE 13
                                     DEFAULT

Section 13.1 RIGHT TO RE-ENTER

     (a) An "Event of Default" occurs whenever:

          (i)  any Rent is not paid when due and payable and the non-payment
               continues for five (5) days after written notice to the Tenant
               (but if any Rent is not paid when due and payable on two (2)
               occasions (whether or not such non-payment becomes an Event of
               Default), any such non-payment shall thereafter immediately and
               without notice constitute an Event of Default if not paid when
               due and payable);

          (ii) the Tenant fails to observe or perform any other of the terms,
               covenants or conditions of this Lease to be observed or performed
               by the Tenant (other than the terms, covenants or conditions set
               out below in subparagraph

         (iii) for which no notice shall be required except as expressly
               provided therein), provided the Landlord first gives the Tenant
               ten (10) days' written notice of the Tenant's failure, or such
               shorter period of time as is otherwise provided in this Lease,
               and the Tenant within the ten (10) day or shorter period fails to
               commence diligently and thereafter to proceed diligently to cure
               its failure; or

          (iv) any of the following events occurs:

               (1)  a report, statement or certificate delivered by the Tenant
                    pursuant to this Lease is false or misleading in a material
                    respect except for a misstatement that is the result of an
                    inadvertent or unintentional error;

                                       29
<PAGE>

               (2)  the Tenant, or a Person carrying on business in a part of
                    the Leased Premises, or an Indemnifier becomes bankrupt or
                    insolvent or takes the benefit of any statute for bankrupt
                    or insolvent debtors or makes any proposal, assignment or
                    arrangement with its creditors;

               (3)  a receiver or a receiver and manager is appointed for all or
                    a part of the property of the Tenant, or of another Person
                    carrying on business in the Leased Premises, or of an
                    Indemnifier and is not revoked within ten (10) days;

               (4)  steps are taken or proceedings are instituted for the
                    dissolution, winding up or other termination of the Tenant's
                    or the Indemnifier's existence or the liquidation of their
                    respective assets (other than a bona fide corporate
                    reorganization) and the Tenant has not diligently commenced
                    the resistance of such steps or proceedings within ten (10)
                    days after the same are taken or fails thereafter to proceed
                    diligently to resist such steps or proceedings;

               (5)  the Tenant or the Indemnifier makes or attempts to make a
                    bulk sale of any of its assets regardless of where they are
                    situated (except for a bulk sale made to an Transferee when
                    the Transfer is permitted under this Lease or has been
                    consented to by the Landlord);

               (6)  property is sold, disposed or removed from the Leased
                    Premises so that there does not remain sufficient property
                    on the Leased Premises available for distraint, free and
                    clear of any lien, charge or other encumbrance ranking ahead
                    of the

                                       30
<PAGE>

                    Landlord's right of distress, to satisfy the Rent due or
                    accruing for at least twelve (12) months;

               (7)  if the Tenant abandons or attempts to abandon the Leased
                    Premises or the Tenant fails to carry on business in the
                    Leased Premises in accordance with the terms of this Lease;

               (8)  the Tenant effects or attempts to effect a Transfer that is
                    not permitted by this Lease; or

               (9)  this Lease or any material part of the Tenant's assets on
                    the Leased Premises are taken or seized under a writ of
                    execution, an assignment, pledge, charge, debenture, or
                    other security instrument and same is not lifted within five
                    (5) days following written notice thereof to the Tenant.

     (b) Upon the occurrence of an Event of Default which is continuing, (i) the
full amount of the current month's and the next three (3) months' instalments of
Rent will become due and payable, and (ii) the Landlord may re-enter and
re-possess the Leased Premises and on such re-entry, this Lease and all of the
Tenant's rights hereunder will terminate without liability on the part of the
Landlord for loss or damage, and without prejudice to the Landlord's rights to
recover arrears of Rent or damages for any previous breach by the Tenant of any
covenant or condition of this Lease. On such a termination, (1) the Tenant will
promptly (and in any case within ten (10) days after written notice requiring it
to do so) remove all of its property from the Leased Premises, or (2) the
Landlord may at any time remove all or part of the property from the Leased
Premises and store it in a public warehouse or elsewhere at the cost of the
Tenant. The Landlord will not be responsible for loss or damage to any of the
Tenant's property regardless of how the loss or damage is caused, and regardless
of negligence. If the Tenant fails to remove its property as required by clause
(1) above, or if it fails to pay the Landlord's costs of removal and storage
within ten (10) days after written notice specifying those costs, the Tenant
will be considered to have abandoned its property and the Landlord will be
entitled to retain it or to sell or dispose of the

                                       31
<PAGE>

Tenant's property for the Landlord's own benefit. Notwithstanding any such
termination, the Landlord shall be entitled to recover damages from the Tenant
including, but not limited to, (a) damages for loss of Rent suffered by reason
of this Lease having been prematurely terminated; (b) the cost of recovering the
Leased Premises; and (c) solicitor's fees on a solicitor and his client basis.

Section 13.2 RIGHT TO RELET

     (a) If the Landlord elects to re-enter the Leased Premises, or if it takes
possession pursuant to legal proceedings or pursuant to any notice provided for
by law, it may either terminate this Lease or it may without terminating this
Lease make any alterations and repairs as are necessary in order to relet the
Leased Premises. Upon each reletting all rent received by the Landlord will be
applied, first to the payment of any indebtedness other than Basic Rent or
Additional Rent due hereunder; second, to the payment of any costs and expenses
of reletting including brokerage fees and solicitor's fees and the costs of
alterations and repairs; third, to the payment of Basic Rent and Additional Rent
due and unpaid hereunder; and the residue, if any, will be held by the Landlord
and applied in payment of future Rent as it becomes payable hereunder. No
re-entry or taking possession of the Leased Premises will be construed as an
election on its part to terminate this Lease unless a written notice of that
intention is given to the Tenant.

Section 13.3 EXPENSES

     If legal action is brought for recovery of possession of the Leased
Premises, for the recovery of Basic Rent and Additional Rent or any other amount
due under this Lease, or because of the breach of any other of the Tenant's
obligations, the Tenant will pay to the Landlord all expenses incurred therefor,
including a solicitor's fee (on a solicitor and his client basis), unless a
court otherwise awards, plus fifteen percent (15%) of such expenses to cover the
Landlord's overhead and administrative costs.

Section 13.4 WAIVER OF EXEMPTION FROM DISTRESS

     The Tenant agrees that notwithstanding anything contained in the Landlord
and Tenant Act (Ontario), or any statute or provision subsequently passed to
take the place of or amend the Act, none of the goods and chattels of the

                                       32
<PAGE>

Tenant which are on or have at any time been on the Leased Premises will be
exempt from levy by distress for Basic Rent or Additional Rent in arrears by the
Tenant as provided for by any Sections of the said Act or any amendments
thereto, and that if any claim is made for such exemption by the Tenant or if a
distress is made by the Landlord, this covenant and agreement may be pleaded as
an estoppel against the Tenant in any action brought to test the right to the
levying upon any such goods as are named as exempted in any Sections of the said
Act or amendments thereto; the Tenant waiving, as it hereby does, all and every
benefit that could or might have accrued to the Tenant under and by virtue of
any Sections of the said Act or any amendments thereto but for this covenant.

Section 13.5 LANDLORD'S RIGHTS

     If the Tenant fails to pay any Additional Rent payable to a third party
when due, the Landlord, after giving three (3) days' notice in writing to the
Tenant, may, but will not be obligated to, pay all or any part of the same. If
the Tenant is in default in the performance of any of its other covenants or
obligations under this Lease (other than the payment of Basic Rent, Additional
Rent or other sums required to be paid pursuant to this Lease), the Landlord
may, but will not be obligated to, after giving ten (10) days' written notice to
the Tenant of such default and the Tenant within such ten (10) day period fails
to commence diligently and thereafter proceed diligently to perform such
covenant or obligation, (or without notice in the case of an emergency), perform
or cause to be performed any of the unperformed covenants or obligations, or any
part thereof, and for such purpose may do such things as may be required
including, without limitation, entering upon the Leased Premises and doing such
things upon or in respect of the Leased Premises or any part thereof as the
Landlord reasonably considers requisite or necessary. All expenses incurred and
expenditures made by the Landlord plus a sum equal to fifteen percent (15%)
representing the Landlord's overhead and administrative costs will be paid by
the Tenant as Additional Rent forthwith upon demand. The Landlord shall have no
liability to the Tenant for any loss or damage resulting from any such action or
entry by the Landlord upon the Leased Premises under this Article 13 and same is
not a re-entry or a breach of any covenant for quiet enjoyment contained in this
Lease or imposed by law.

                                       33
<PAGE>

Section 13.6 REJECTION OF TENANT'S REPUDIATION

     If an Event of Default occurs the Landlord may, instead of terminating this
Lease, insist upon the performance of the covenantsand conditions of this Lease
and in that case may do both or either of the following: (a) levy distress for
arrears of Rent; and (b) take legal proceedings against the Tenant for both or
either of (i) payment of Rent as it becomes due; and (ii) performance of the
covenants and conditions of this Lease; all without prejudice, however, to the
Landlord's right to terminate this Lease at any time should the Event of Default
continue unremedied.

     Mention in this Lease of any particular remedy of the Landlord in respect
of the default by the Tenant does not preclude the Landlord from any other
remedy in respect thereof, whether available at law or in equity or by statute
or expressly provided for in this Lease. No remedy shall be exclusive or
dependent upon any other remedy, but the Landlord may from time to time exercise
any one or more of such remedies generally or in combination, such remedies
being cumulative and not alternative.

Section 13.7 NO CONDONING OF DEFAULT

     No condoning, excusing or overlooking by the Landlord or Tenant of any
default, breach or non-observance by the Tenant or the Landlord at any time or
times in respect of any covenant, proviso or condition herein contained shall
operate as a waiver of the Landlord's or the Tenant's rights hereunder in
respect of any continuing or subsequent default, breach or non-observance, or so
as to defeat or affect in any way the rights of the Landlord or Tenant herein in
respect of any such continuing or subsequent default or breach, and no waiver
shall be inferred from or implied by anything done or omitted by the Landlord or
the Tenant save only express waiver in writing.

                                       34
<PAGE>

                                   ARTICLE 14
                                  MISCELLANEOUS

Section 14.1 RULES AND REGULATIONS

     The Landlord may adopt Rules and Regulations from time to time which shall
be made a part of this Lease, and the Tenant will observe them. The Landlord
reserves the right to amend or supplement the Rules and Regulations applicable
to the Leased Premises or the Building as in the Landlord's judgment are needed
for the safety, care, cleanliness and efficient operation of the Building.
Notice of the Rules and Regulations and amendments and supplements, if any, will
be given to the Tenant and the Tenant will thereupon observe them provided that
they do not contradict any terms, covenants and conditions of this and shall be
reasonable and have general application to all tenants of the Building. The
Landlord shall enforce same in a reasonable and non-discriminatory manner
against all tenants of the Building.

Section 14.2 INTENT AND INTERPRETATION

     (a) Net Lease

     The Tenant acknowledges that it is intended that this Lease is a completely
carefree net lease to the Landlord, except as expressly herein set out, that the
Landlord is not responsible during the Term for any costs, charges, expenses and
outlays of any nature whatsoever arising from or relating to the Leased
Premises, or the use and occupancy thereof and the Tenant will pay all charges,
impositions, costs and expenses of every nature and kind relating to the Leased
Premises except as expressly herein set out.

     (b) Obligations as Covenants and Severability

     Each obligation or agreement of the Landlord or the Tenant expressed in
this Lease, even though not expressed as a covenant, is considered to be a
covenant for all purposes. If any provision of this Lease is or becomes invalid,
void, illegal or unenforceable, it shall be considered separate and severable
from the Lease and the remaining provisions shall remain in force and be binding
upon the parties as though such provision had not been included.

     (c) Entire Agreement and Amendment of Modification

                                       35
<PAGE>

     This Lease and the Schedules, and Riders, if any, attached Together with
the Rules and Regulations set forth all covenants, promises, agreements,
conditions or understandings, either oral or written, between them. No
alteration or amendment to this Lease will be binding upon the Landlord or the
Tenant unless in writing and signed by the Tenant and the Landlord.

     (d) Governing Law

     This Lease will be construed in accordance with and governed by the laws of
the Province of Ontario.

     (e) Time of the Essence

     Time is of the essence of this Lease and of every part of it.

     (f) Successors

     The rights and obligations under this Lease extend to and bind the
successors and assigns of the Landlord and, if Section 10.1 is complied with,
the heirs, executors, administrators and permitted successors and assigns of the
Tenant. If there is more than one Tenant, they are bound jointly and severally
by this Lease.

Section 14.3 OVERHOLDING--NO TACIT RENEWAL

     If the Tenant remains in possession of the Leased Premises after the end of
the Term without having signed a new lease or an extension of Term agreement,
there is no tacit renewal of this Lease or the Term, notwithstanding any
statutory provisions or legal presumptions to the contrary, and the Tenant will
be deemed to be occupying the Leased Premises as a tenant from month-to-month at
a monthly Basic Rent equal to twice the monthly amount of Basic Rent payable
during the last month of the Term, and otherwise, upon the same terms, covenants
and conditions as are set forth in this Lease (including the payment of
Additional Rent) so far as these are applicable to a monthly tenancy.

                                       36
<PAGE>

Section 14.4 TENANT PARTNERSHIP

     If the Tenant is a partnership ("Tenant Partnership") each Person who is
presently a member of the Tenant Partnership, and each Person who subsequently
becomes a member of any successor Tenant Partnership will be and continue to be
liable jointly and severally for the full performance of, and will be and
continue to be subject to, the terms, covenants and conditions of this Lease,
whether or not the Person ceases to be a member of the Tenant Partnership or
successor Tenant Partnership.

Section 14.5 WAIVER

     The waiver by either party of any breach of the other is not demmed to be a
waiver of any preceding breach by the Tenant regardless of the Landlord's
knowledge of the preceding breach at the time of acceptance of the Rent. No
term, convenant or condition of this Lease is deemed to have been waived by the
Landlord unless the waiver is in writing by the Landlord.

     All Basic Rent and Additional Rent to be paid by the Tenant to the Landlord
will be paid without any deduction, abatement, set-off or compensation
whatsoever (except for the Basic Rent to the extent it may be abated pursuant to
Section 9.1), and the Tenant hereby waives the benefit of any statutory or other
rights in respect of abatement, set-off or compensation in its favour at the
time hereof or at any future time.

Section 14.6 ACCORD AND SATISFACTION

     No payment by the Tenant or receipt by the Landlord of a lesser amount than
the monthly payment of Rent stipulated is deemed to be other than on account of
the earliest stipulated Rent, nor is any endorsement or statement on any cheque
or any letter accompanying any cheque or payment as Rent deemed an
acknowledgement of full payment of accord and satisfaction, and the Landlord may
accept and cash any cheque or payment without prejudice to the Landlord's right
to recover the balance of the Rent due or to pursue any other remedy provided in
this Lease.

                                       37
<PAGE>

Section 14.7 FORCE MAJEURE

     Notwithstanding anything in this Lease, if either party is bona fide
delayed or hindered in or prevented from the performance of any term, covenant
or act required hereunder by reason of inclement weather conditions; strikes;
labour troubles; inability to procure materials or services; power failure;
restrictive overnmental laws or regulations; riots; insurrection; sabotage;
rebellion; war; act of God; or other reason whether of a like nature or not
which is not the fault of the party delayed in performing work or doing acts
required under the terms of this Lease, then the performance of that term,
covenant or act is excused for the period of the delay and the party delayed
will be entitled to perform that term, covenant or act within the appropriate
time period after the expiration of the period of the delay. However, the
provisions of this Section do not operate to excuse the Tenant after the
Commencement Date from the prompt payment of Rent.

Section 14.8 NOTICES

     Any notice, demand, request or other instrument which may be or is required
to be given under this Lease will be delivered in person or sent by registered
mail postage prepaid and will be addressed if to the Landlord, at 49 Bathurst
Street, Suite 50, Toronto, Ontario, M5V 2P2, and if to the Tenant, at the Leased
Premises. Any notice, demand, request or consent is conclusively deemed to have
been given or made on the day upon which it is delivered, or, if mailed, then
four (4) business days (excluding Saturdays, Sundays and statutory holidays)
following the day of mailing, as the case may be. Either party may give written
notice of any change of its address and thereafter the new address is deemed to
be the address of that party for the giving of notices. If the postal service is
interrupted or is substantially delayed, any notice, demand, request or other
instrument will be delivered.

Section 14.9 REGISTRATION

     Neither the Tenant nor any one on the Tenant's behalf or claiming under the
Tenant will register this Lease. If either party intends to register a document
for the purpose only of giving notice of this Lease or of any assignment or
sublease of this Lease, then, upon request, both parties will join in the
execution of a short form or notice of this Lease which will (i) be prepared by
the Landlord or its solicitors at the Tenant's expense, and (ii) only

                                       38
<PAGE>

describe the parties, the Leased Premises and the Commencement Date and the
expiration date of the Term, and any options to extend or renew the Term.

Section 14.10 ACCRUAL OF BASIC RENT AND ADDITIONAL RENT

     Rent will be considered as annual and accruing from day-to-day and where it
becomes necessary for any reason to calculate Rent for an irregular period of
less than one (1) year, an appropriate apportionment and adjustment will be
made.

Section 14.11 QUIET ENJOYMENT

     If the Tenant pays the Rent and observes and performs all its terms,
covenants and conditions, the Tenant will quietly hold and enjoy the Leased
Premises for the Term without interruption by the Landlord twenty-four (24)
hours a day, seven (7) days a week throughout the Term of the Lease and any
renewals thereof, unless otherwise permitted under the terms of this Lease.

     IN WITNESS WHEREOF, the Landlord and the Tenant have signed and sealed this
Lease.

SIGNED, SEALED & DELIVERED               707932 ONTARIO LIMITED
in the presence of:

                                         Per: /s/ Marcy Lipson
                                              ------------------------

                                         TUCOWS INTERNATIONAL
                                         CORPORATION

                                         /s/ Edward Gray
                                         ------------------------

                                         I/We have the authority to bind
                                         the corporation

                                       39
<PAGE>

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

FIRSTLY: All and singular those certain parcels or tracts of land and premises
situate, lying and being in the City of Toronto, in the Municipality of
Metropolitan Toronto and being composed of Lot Numbers 64, 65, 66, 67 and 68 on
the easterly side of Dufferin Street, according to Plan No. 684 filed in the
Land Registry Office for the Registry Division of Toronto (No. 63).

SECONDLY: All and singular those certain parcels or tracts of land and premises
situate, lying and being in the City of Toronto, in the Municipality of
Metropolitan Toronto and being composed of Lot Numbers 69, 70, 71, 72 and 73 on
the easterly side of Dufferin Street, according to Plan No. 684 filed in the
Land Registry Office for the Registry Division of Toronto (No. 63).

THIRDLY: All and singular that certain parcel or tract of land and premises'
situate, lying and being in the City of Toronto, In the Municipality of
Metropolitan Toronto, and being more particularly described as follows, namely:

Part of Block 7, a part of the Ordinance Lands conveyed by the Crown to the
Corporation of the City of Toronto under Letters Patent dated the 13th day of
May A.D. 1880; the boundaries of the said parcel of land being described as
follows:

COMMENCING at a point in the latterly limit of Dufferin Street where the same
would be intersected by the production westerly of the line of the southerly
faces of the brick piers forming in part the southerly wall of the westerly part
of the two storey brick building standing in September, 1941, upon the lands
immediately adjoining to the north and west of the lands herein described, the
said point of intersection being distant Two Hundred and Seventy-five feet
(275') more or less, measured southerly along the said limit of Dufferin Street
from the southerly limit of King Street West;

THENCE EASTERLY along the said production, to and along the line of the said
southerly faces of piers, in all, a distance of Fifty-seven feet and Five and
one-quarter inches (57' 5-1/4"),

                                       40
<PAGE>

more or less, to the westerly face of the westerly wall of the one storey brick
building standing at the date hereinbefore last mentioned upon the said lands
herein described;

THENCE NORTHERLY about parallel to the said limit of Dufferin Street, being
along the westerly face of a brick pier and the production northerly thereof, in
all, a distance of One Foot and Three and three-quarters inches (1' 3-3/4"),
more or less, to the centre line of the One Foot and One and a half inch
(1' 1-1/2") part of the said southerly wall;

THENCE EASTERLY along the said centre line. Seventeen feet and Eleven and
one-quarter inches (17' ll-1/4"), more or less, to the point of intersection
with the centre line of the One Foot and One and a half inch (1' 1-l/2") part et
the easterly wall of the said westerly part of the brick building standing upon
the lands immediately to the north and west of the lands herein described;

THBNCE NORTHERLY along the last mentioned centre line of Wall, being about
parallel to the said limit of Dufferin Street, Two Hundred and Seven feet and
seven and one-quarter inches (207' 7-1/4") more or less, to the point of
intersection with the centre line of the Nine inch (9") part of the southerly
wall of the northerly part o the said two storey brick building);

THENCE EASTERLY and about parallel to the said southerly limit of King Street
West, being along the last mentioned centre line of wall, One Hundred and
fifty-nine feet and six and a half inches (159' 6-1/2"), more or less, to the
centre line of a brick pier forming a part of the last mentioned southerly wall;

THENCE NORTHERLY along the said centre line of pier, being parallel to the said
limit of Dufferin Street Two and One-quarter inches (2-1/4") more or less, to
the point of intersection with the centre line of the One Foot and one and a
half inch (1' l-l/2") part of the last mentioned southerly wall;

THENCE EASTERLY along the last mentioned centre line of wall, and about parallel
to the said southerly limit of King Street Meat, Sixty-five feet (65') more or
less, to a point in the westerly limit of Mowat Avenue distant Sixty-five feet
and Eleven inches (65' ll"), more or less, measured southerly thereon from the
said southerly limit of King Street West;

                                       41
<PAGE>

THENCE SOUTHERLY along the said westerly limit of Mowat Avenue Two Hundred and
Eighty-one feet and Four inches (281' 4"), more or less to the north easterly
angle of the property known as The Asylum Farm Building Lot, being to the
north-easterly angle of Lot Number 68, according to a plan filed as Number 684
in the Land Registry Office for the Registry Division of Toronto;

THENCE WESTERLY along the northerly limit of said Lot Number 68, to and along
the northerly limit of Lot Number 69, according to the said plan, being along
the said northerly limit of The Asylum farm Building Lot, in all, a distance of
Two Hundred and ninety-nine feet and Ten and one-quarter inches (299' 10-1/4"),
more or less, to the easterly limit of Dufferin Street aforesaid;

THENCE NORTHERLY along the last mentioned limit, Seventy-two feet and Three
inches (72' 3") more or less, to the point of commencement;

RESERVING a right-of-way, at all times, for all persons now or hereafter
entitled thereto, over, along and upon that part of the said lands hereinbefore
described more particularly described as follows:

BEGINNING at the north-westerly angle of the westerly part of the said lands
hereinbefore described, being a point in the said easterly limit of Dufferin
Street distant Two hundred and seventy-five feet (275'), more or less, measured
southerly thereon from the said southerly limit of King Street West;

THENCE EASTERLY along the northerly limit of the said westerly part of the lands
hereinbefore described, fifty-seven feet and five and one-quarter inches
(57' 5-1/4"), more or less, to the westerly face of the Westerly wall of the
said one storey brick building standing in September, 1941, upon the said lands
hereinbefore described;

                                       42
<PAGE>

THENCE SOUTHERLY along the said westerly face of wall, Thirty-eight feet and
Four and three-quarter inches (38' 4-3/4"), more or less, to the northerly face
of the northerly wall of a brick building standing at the date hereinbefore last
mentioned;

THENCE WESTERLY along the last mentioned face of wall, Seven feet and six inches
(7' 6"), more or less, to the westerly face of the westerly wall of the last
mentioned building;

THENCE SOUTHERLY along the last mentioned westerly face of wall, Five feet and
Eight and a half inches (5' 8-l/2") more or less, to the northerly face of the
northerly wall of a two storey brick building standing at the date hereinbefore
last mentioned upon the lands to the south of the lands over which a right of
way is hereby reserved;

THENCE WESTERLY along the last mentioned face of wall and the production
westerly thereof, in all, a distance of forty-nine Feet and One-quarter of an
inch (49' 0-1/4"), more or less, to the easterly limit of Dufferin Street
aforesaid;

THENCE NORTHERLY along the last mentioned limit, Forty-four feet (44'), more or
less, to the place of Beginning;

TOGETHER WITH the right to maintain in their present position any parts of the
said building which may encroach on or over the herein described parcel of land
over which a right-of-way is reserved.

                                       43
<PAGE>

                                  SCHEDULE "B"

                                   FLOOR PLAN

                                       44
<PAGE>

                                  SCHEDULE "C"

                                 LANDLORD'S WORK

LANDLORD'S WORK
---------------

     The Landlord shall finish the Leased Premises in the manner and colour
standard to the Building which, without limiting the generality of the
foregoing, will include the elements outlined below. All work not specifically
described as Landlord's Work, including that work indicated as Tenant's Work in
this Schedule "C" will be the sole responsibility of the Tenant. The Landlord
will complete the work described below by January 1, 2000 if later than this
date, the Landlord will work in conjunction with the Tenant's contractors.

1.   Demising Walls: To be in either gypsum wallboard (with joints taped and
     sanded but not painted) or, at the Landlord's option, unfinished masonry,
     concrete or other suitable material.

2.   Exterior Walls: Where required to enclose the Building, to be in glass,
     masonry, and/or concrete, at the Landlord's option, including exterior
     doors as indicated on the Building plans.

3.   Floors: To be of smooth trowelled concrete ready to receive Tenant's floor
     finish.

4.   Ceilings: Not to be provided. The area above the Leased Premises will be
     the exposed underside of overhead construction.

5.   Electrical: The Landlord will provide the existing three (3) phase 200 amp
     600 volt electrical service.

6.   Plumbing: The Landlord will provide hot and cold water lines and drains
     capped to the location of the washrooms in a location determined by the
     Landlord acting reasonably.

7.   Sprinklers: The existing sprinkler system will be provided by the Landlord
     with sufficient coverage to protect the total open Leased Premises area.
     Modifications required for dropped ceilings or special hazard requirements
     will be at the Tenant's expense.

                                       45
<PAGE>

8.   H.V.A.C.: The Landlord will provide and install a complete H.V.A.C. system
     of sufficient capacity to suit the area of the Leased Premises including
     main trunk for open concept design. Location of H.V.A.C. units/systems to
     be determined by the Landlord. Distribution of H.V.A.C. to be Tenant's
     responsibility.

9.   Fire Safety: Provide existing sprinkler system and all fire fighting
     equipment except smoke detectors and portable fire extinguishers where
     required by the building and fire departments.

TENANT'S WORK
-------------

     The Tenant shall provide, at its sole expense, the items enumerated below
together with any other work required for the finishing of the Leased Premises
for the tenant's intended use.

1.   Interior Finish: The Tenant will provide all interior partitioning, wall
     and floor and ceiling coverings, interior painting, and decorating.

2.   Electrical: The Tenant will provide all electrical work beyond the point of
     the service entry to the Leased Premises, including:

     (a)  distribution panel, branch wiring, underfloor conduits (if any),
          outlets, receptacles, and switches.

     (b)  lamps, fixtures, emergency lighting, and related equipment.

     (c)  wiring for sign(s), hot water heater (s), exhaust fan(s) and baseboard
          heaters (s).

3.   H.V.A.C.: The Tenant will supply and install all distribution duct work for
     heating and air conditioning within the Leased Premises at its own expense.

                                       46
<PAGE>

4.   Plumbing: The Tenant will provide all additional branch plumbing and
     drainage, mechanical exhaust, washroom fixtures, and accessories required
     by the Tenant for the washroom (s). The Tenant will also arrange and pay
     for installation of its hot water heater(s).

5.   Exhaust Systems: Any required exhaust or special ventilating systems,
     including make-up air system, if so required are to be provided by the
     Tenant.

6.   Fire Protection: The Tenant, at its own expense, will provide all fire
     fighting equipment, including smoke detectors, alarms, and portable fire
     extinguishers for the Leased Premises in types, quantities and locations as
     required by the building and fire departments. When the Tenant's occupancy
     requires fire-rated construction, the Tenant shall satisfy the governing
     codes for such fireproofing standards.

7.   Performance of Tenant's Work: The following provisions are in addition to
     and do not waive any other provisions in this Schedule "C" or the
     provisions contained in the Lease between the Tenant and the Landlord:

     (a)  All Tenant's Work shall be performed in accordance with
          Landlord-approved Tenant drawings and specifications, and in
          accordance with all applicable governing codes and regulations. All
          drawings to be submitted for the Landlord's approval within thirty
          (30) days of the unconditional acceptance of the Offer; each full day
          after thirty (30) days following the acceptance of this Offer that the
          Landlord is not in receipt of the Tenant's drawings shall result in
          the Commencement Date being postponed by one (1) full day without
          penalty to the Landlord. Before performing any Tenant's Work, the
          Tenant shall secure and demonstrate to the Landlord on demand, all
          necessary permits. Upon completion, the Tenant shall secure all
          applicable certificates of completion and occupancy.

     (b)  All Tenant's Work shall be completed with new materials. Material and
          workmanship shall be of a uniformly high quality performed in
          accordance with the very best standards of practice and subject to the
          approval of the

                                       47
<PAGE>

          Landlord and/or its Architect/Engineer. Any damage to the Leased
          Premises or the Building caused by the Tenant, or any of its
          employees, contractors, or workmen, will be repaired forthwith by the
          Landlord at the Tenant's expense plus a fifteen percent (15%)
          administration fee.

     (c)  The Tenant and his contractor(s) shall not impose a greater load on
          any concrete floor than the design live load of 100 pounds per square
          foot uniformly distributed. No unusual loads may be suspended from the
          underside of the ceiling structure.

                                       48
<PAGE>

                                  SCHEDULE "D"

                                  DEFINITIONS

     1. "Additional Rent" means all sums of money or charges required to be paid
by the Tenant under this Lease (except Basic Rent and the Taxes payable pursuant
to Section 3.2(b)) whether or not designated "Additional Rent" or payable to the
Landlord.

     2. "Building" means the building known municipally 78 Mowat Avenue,
including the Common Areas and Facilities, and the areas and facilities serving
the Building or having utility in connection therewith, as determined by the
Landlord.

     3. "Common Areas and Facilities" means (a) those areas, facilities,
utilities, improvements, equipment and installations in the Building which, from
time to time, are not designated or intended by the Landlord to be leased to
tenants of the Building, and (b) those areas, facilities, utilities,
improvements, equipment and installations which serve or are for the benefit of
the Building, whether or not located within, adjacent to, or near the Building
and which are designated from time to time by the Landlord as part of the Common
Facilities, including, without limitation, all areas, facilities, utilities,
improvements, equipment and installations which are provided or designated (and
which may be changed from time to time) by the Landlord for the use or benefit
of the tenants, their employees, customers and other invitees in common with
others entitled to the use and benefit thereof in the manner and for the
purposes permitted by this Lease.

     4. "Landlord" means the party of the First Part and includes the Landlord
and its duly authorized representatives.

     5. "Mortgagee" means any mortgagee or chargee (including any trustee for
bondholders), from time to time, of the Building or any part thereof, or the
Landlord's or the owners of the Building's interest in them.

     6. "Normal Business Hours" means the hours from 8:00 a.m. to 6:00 p.m. on
Mondays to Fridays unless such a day is a holiday.

                                       49
<PAGE>

     7.(a) "Operating Costs" means the total amounts incurred, paid or payable
whether by the Landlord or by others on behalf of the Landlord for the
maintenance, operation, repair, replacement, managing and administration of the
Building (calculated as if the Building were fully occupied and operational
during each Rental Year of the Term).

     (b) Operating Costs include, without limitation and without duplication,
the aggregate of:

     (i)  the total annual costs of insuring the Building and the improvements
          and equipment and other property servicing the Building from time to
          time as the Landlord, or the Mortgagee, from time to time determines;

     (ii) window cleaning, exterior maintenance, snow removal, garbage and waste
          collection and disposal, recycling, and the costs of security and
          supervision;

    (iii) the aggregate of the costs and amounts paid by the Landlord, to the
          extent such costs are not separately metered and paid for directly by
          individual tenants for (1) all fuel used in heating and the purchase
          or generation of steam for heating or other purposes; (2) all
          electricity furnished by the Landlord to the Building other than
          electricity furnished to and paid for by tenants; (3) all hot and cold
          water other than that chargeable to tenants; (4) climate control; (5)
          heating, ventilating and air conditioning portions of the Building;
          and(6) telephone and other utility costs, used in the maintenance and
          operation of the Building;

     (iv) salaries, wages and other amounts paid or payable for management and
          other supervisory personnel including the Building manager and related
          staff and the total charges (including contributions and premiums for
          fringe benefits, unemployment insurance, and Workers' Compensation,
          pension plan contributions and similar premiums and contributions) of
          any independent

                                       50
<PAGE>

          contractors or managers, engaged in the repair, care, maintenance and
          cleaning of the Building;

     (v)  the cost of the rental of any equipment and signs, and the cost of
          supplies, used by the Landlord in the maintenance and operation of the
          building;

     (vi) all non-capital repairs (including major repairs) and replacements to
          and maintenance and operation of the Building (except for repairs or
          replacements of inherent structural defects or weaknesses), and the
          systems, facilities and equipment serving the Building (including
          without limitation, the components of the heating, ventilating and air
          conditioning systems serving the Building) including the Leased
          Premises;

    (vii) depreciation or amortization, together with interest calculated at
          two percentage points above the prime rate charged to the Landlord by
          its chartered bank, on the costs, including repairs and replacements
          of the maintenance, cleaning, operating, heating, ventilating and air
          conditioning equipment, master utility meters and all other fixtures,
          equipment and facilities that are part of the Building and not
          intended to be leased to tenants, which, in accordance with sound
          accounting principles, are not fully expensed in the Rental Year in
          which they are incurred;

   (viii) all business taxes and other Taxes, if any, from time to time
          payable by the Landlord with respect to the Common Areas and
          Facilities;

     (ix) an administration fee of fifteen percent (15%) of the costs set out in
          this Paragraph 7(a)(i) through (vii), inclusive.

From the total of the above costs, there is deducted:

     (aa) all net recoveries which reduce Operating Costs received by the
          Landlord from tenants as a result of any act, omission, default or
          negligence of such tenants or by reason of a breach by such tenants of
          provisions in their

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<PAGE>

          respective leases (other than recoveries from such tenants under
          clauses in their respective leases requiring their contribution to
          Operating Costs);

     (bb) net proceeds received by the Landlord from insurance policies taken,
          out by the Landlord to the extent that the proceeds relate to
          Operating Costs; and

     (cc) the amount of any GST for which the Landlord liable on the purchase of
          goods and services in this Paragraph 7(a) and (b)(i) through (viii)
          which may be available to and claimed by the Landlord as an input tax
          credit in determining the Landlord's net tax liability or refund under
          the GST.

     8. "Person", if the context allows, includes any person, firm, partnership
or corporation, or any group of persons, firms, partnerships or corporations or
any combination thereof.

     9. "Proportionate Share" means a fraction to be calculated by the Landlord
which has as its numerator the Rentable Area of the Leased Premises and as its
denominator the Total Rentable Area of the Building and all Common Areas and
Facilities.

     10. "Rent" means all Basic Rent and Additional Rent. All Rent is payable
without prior demand and without any deduction, abatement or set-off.

     11. "Rental Year" means a period of time consisting of consecutive periods
of twelve (12) calendar months unless otherwise stipulated by the Landlord.

     12. "Taxes" means (a) all real property taxes, rates, duties and
assessments (including local improvement taxes), impost charges or levies,
whether general or special, that are levied, rated, charged or assessed against
the Building or any part thereof from time to time by any lawful taxing
authority, whether federal, provincial, municipal, school or otherwise, and any
taxes or other amounts which are imposed in lieu of, or in addition to, any such
real property taxes whether of the foregoing character or not and whether in
existence at the Commencement Date or not, and any such real property taxes
levied or assessed against

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the Landlord or the owners on account of its interest in the Building or any
part thereof, or their ownership thereof, as the case may be, calculated on the
basis of the Building being assessed as a fully leased and operational building,
and ( b) the costs and expenses incurred for consulting, appraisal, legal and
other fees and expenses to the extent they are incurred in an attempt to
minimize or reduce amounts mentioned in (a) or (b) above.

     13. "Tenant" means the party of the Second Part. If there is more than one
Tenant, any notice required or permitted by this Lease may be given by or to any
one of them and has the same force and effect as if given by or to all of them.
Any reference to "Tenant" includes, where the context allows, the servants,
employees, agents, invitees and licensees of the Tenant and all others over whom
the Tenant may reasonably be expected to exercise control.

                                       53

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