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                                                                     Exhibit 4.6

                                                                      May 1 2000

                              LEASE OF OFFICE SPACE

BETWEEN: 448048 ONTARIO INC. & FIRST UNITED REAL ESTATE
         INVESTORS INC.                                             ("Landlord")
           (a Joint Venture operating as 4211 YONGE STREET)

AND:     IMI INTERNATIONAL MEDICAL INNOVATIONS INC.                   ("Tenant")

FOR PREMISES AT:  4211 YONGE STREET, SUITE 300, WILLOWDALE, ONTARIO, M2P 2A9.

LANDLORD AND TENANT, in consideration of the covenants herein contained, hereby
agree as follows:

                             ARTICLE I DEFINITIONS

1.01   Definitions In this Lease:

(a)    "Article" means an article of this Lease.

(b)    "Building" means Landlord's building known as 4211 YONGE STREET,
       WILLOWDALE, ONTARIO, M2P 2A9.

(c)    "Commencement Date" means the first day of the Term of this Lease.

(d)    "Exhibit A" means the plan(s) attached hereto as Exhibit A.

(e)    "Exhibit A (i)" means the provisions relating to the construction of
       Leased Premises, Landlord's Work and Tenant's Work, attached hereto as
       Exhibit A (i).

(f)    "Exhibit A (ii)" means the Legal Description of the Building.

(g)    "Exhibit B" means the provisions relating to Occupancy Costs and other
       matters attached hereto as Exhibit B.

(h)    "Exhibit C" means Rules and Regulations attached hereto as Exhibit C.

(i)    "Exhibit D" means Supplemental Terms and Conditions.

(j)    "Fiscal Year" means a twelve (12) month period (all or part of which
       falls within the Term) from time to time determined by Landlord at the
       end of which Landlord's books are balanced for auditing and/or taxation
       purposes. Unless otherwise notified by the Landlord, "Fiscal Year" shall
       mean the calendar year.

(k)    "Land" means the whole of the lands described in the legal description
       attached hereto as Exhibit A (ii), together with attendant common,
       public and service areas.

(l)    "Occupancy Costs" means amounts payable by Tenant to Landlord under
       Article 4.02.

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(m)    "Other Charges" means amounts payable by Tenant to Landlord other than
       under Article 4.00.

(n)    "Rent" means all amounts payable by Tenant to Landlord including under
       Articles 4.01, 4.02, 4.03 and 6.05.

(o)    "Lease" means this lease, Exhibits A, A(i), A(ii), B, C, and D to this
       lease, and every property executed instrument (including an accepted
       Offer to Lease, referred to in Article 21.05), which by its terms
       amends, modifies or supplements this lease.

(p)    "Premises" means approximately 2,309 rentable square feet, more or
       less, being a portion of the third floor of the Building as generally
       indicated on Exhibit A, bounded by the interior face of all walls, the
       upper surface of the concrete floor, and the under surface of the
       ceiling.

(q)    "Term" means the period of time set out in Article 3.01.

                           ARTICLE II GRANT OF LEASE

2.01   Grant. Landlord demises and leases the Premises to Tenant, and Tenant
hereby leases and accepts the Premises from Landlord, to have and hold during
the Term, subject to the terms and conditions of this Lease.

2.02   Covenants of Landlord and Tenant. Landlord covenants to observe and
perform all of the terms and conditions to be observed and performed by Landlord
under this Lease. Tenant covenants to pay the Rent when due under this Lease,
and to observe and perform all of the terms and conditions to be observed and
performed by Tenant under this Lease.

2.03   Construction of Premises. Landlord shall provide only such improvements
as are listed in Exhibit A (i), All other improvements including the work
obligated in Exhibit A (i) shall be provided by Tenant at the sole cost and
expense of Tenant and in compliance with Exhibit A (i)

2.04   License to use common area. Possession of the Premises by Tenant shall
include the non-exclusive use, in common with others entitled thereto, of the
Common Areas from time to time: subject however to the terms and conditions of
this Lease, and to the rules and regulations the Landlord prescribes from time
to time.

                        ARTICLE III TERM AND POSSESSION

3.01   Term. The term of this lease shall be Five (5) Years, beginning on the
1st day of July, 2000 and ending on the 30th day of June, 2005, unless
terminated earlier as provided in this Lease.

3.02   Acceptance of Premises. Taking possession of all or any part of the
Premises by Tenant shall be conclusive evidence against Tenant that the Premises
or such part are in satisfactory condition on the date of taking possession,
subject only to deficiencies (if any) listed in writing in a notice delivered by
Tenant to Landlord not more than five (5) days after the date of taking
possession save and except for latent defects.

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                      ARTICLE IV RENT AND OCCUPANCY COSTS

4.01   Base Rent. Tenant shall pay to the Landlord as Base Rent for the Premises
the sum of monies as stated in Exhibit (D).

4.02   Additional Rent. In addition to Base Rent, Tenant shall pay to the
Landlord, at the times and in the manner provided in Article 4.06, the Occupancy
Costs set out in Exhibit B: and at such times and in such manner as reasonably
required by Landlord, all other amounts (including Additional Services under
Article 6.05) which are payable by Tenant to Landlord under this Lease.

4.03   Interest. Tenant shall pay to Landlord interest at a rate equal to three
percent (3%) per annum in excess of the minimum lending rate to prime commercial
borrowers from time to time current at the Bank of Montreal in Toronto from the
due date until actual payment, upon all Rent required to be paid hereunder, from
the due date for payment thereof until the same is fully paid and satisfied.

4.04   Payment of Rent - General. All amounts payable by Tenant to Landlord
under this Lease shall be deemed to be Rent and shall be payable and recoverable
as Rent and Landlord shall have the same rights against Tenant for default in
any such payment as in the case of arrears of Rent. Rent shall be paid to
Landlord, without deduction or set-off, in lawful money of Canada, at the
address of Landlord as set out in this Lease, or to such other person or at such
other address as Landlord may from time to time designate in writing. Tenant's
obligation to pay Rent shall survive the expiration or earlier termination of
this Lease.

4.05   Rent for Part-Month. If the Term ends on a day other than the last day of
a calendar month, the installment of Base Rent payable on the first day of the
last calendar month of the Term shall be that proportion of the Annual Base Rent
which the number of days from the first day of such last calendar month to the
last day of the Term, bears to three hundred sixty-five (365). Equivalently if
the Term commences on a day other than the first day of a calendar month, the
installment of Base Rent payable on the commencement date shall be that
proportion of the Annual Base Rent which the number of days from the
Commencement Date to the end of the same month bears to three hundred sixty-five
(365).

4.06   Payment - Occupancy Costs

(a)    At the beginning of each Fiscal Year, Landlord shall compute and deliver
       to Tenant an estimate of Occupancy Costs for the Fiscal Year that is
       commencing and without further notice Tenant shall pay to Landlord in
       monthly installments one-twelfth (1/12) of such estimate simultaneously
       with Tenant's payments of Base Rent during such Fiscal Year.

(b)    Unless delayed for any reason, Landlord shall deliver to Tenant within
       one hundred twenty (120) days after the end of each Fiscal Year a written
       statement (the "Statement") setting out in reasonable detail the amount
       of Occupancy Costs for such Fiscal Year. If the Statement has been
       delayed, Landlord shall deliver same as soon as reasonably possible
       thereafter, If the aggregate of monthly installments of Occupancy Costs
       actually paid by Tenant to Landlord during such Fiscal Year differs from
       the amount of Occupancy Costs payable for such Fiscal Year under Article
       4.02, Tenant shall pay or Landlord shall refund the difference (as the
       case may be) without interest within thirty (30) days after the date of
       delivery of the Statement. Such Statement of Landlord shall be final and
       binding and Tenant shall

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       have no right to dispute the accuracy or propriety of any amounts or
       calculations included therein, except to the extent that (a)Tenant shall
       have, within ninety (90) days after being given such Statement
       demonstrated to the Landlord's satisfaction any error in such Statement
       and (b) Tenant shall have an additional ninety (90) days to request
       information from Landlord relating to Occupancy Costs if such occupancy
       costs have a variance of greater than twenty percent (20%) than in the
       previous Fiscal Year.

                           ARTICLE V USE OF PREMISES

5.01   Use. The Premises shall be used and occupied only as business premises
for the business of a general office or for such other purpose as the Landlord
may specifically authorize in writing, and such business shall be conducted
during the entire Term in a first-class and reputable manner befitting the
Building and the customers thereof.

5.02   Compliance with laws. The Tenant shall use and occupy the Premises in a
safe, careful and proper manner and shall comply with any present or future
regulations or orders of any governing body or any authority having jurisdiction
and the requirements of any insurer. If by reason of the Tenant's use of the
Premises, improvements are necessary to comply with any of the foregoing or with
the requirements of insurance carriers, Tenant shall pay the entire cost
thereof.

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

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

                    ARTICLE VI SERVICES, MAINTENANCE, REPAIR
                           AND ALTERATIONS BY LANDLORD

6.01   Quiet Enjoyment. The Landlord covenants with the Tenant for quiet
       enjoyment.

6.02   Services to Premises. Landlord shall provide in office premises during
Normal Business Hours:

(a)    heating that shall maintain an indoor temperature of twenty-two (22)
       degrees Celsius dry bulb

(b)    air-conditioning that shall maintain an indoor temperature of not more
       than twenty-four (24) degrees Celsius dry bulb with a two (2) degree
       Celsius upswing in the summer with outside peak design temperatures as
       indicated in "Climate Information for Building Design in Canada 1975"
       (Supplement No. I to the National Building Code of Canada)

(c)    ventilation that shall supply a minimum of 2.5 liters per second of
       outside air per ten (10) square meters of net floor area and a minimum of
       ten (10) liters per second of total ventilation air per ten (10) square
       meters of net floor area at all outdoor conditions

(d)    janitor services, including exterior window washing

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

(f)    replacement of Building Standard fluorescent tubes, light bulbs and
       ballasts as required from time to time as a result of normal usage, and

(g)    maintenance, repair, and replacement as set out in Article 6.04.

6.03   Building Services. Landlord shall provide in the Building:

(a)    washrooms sufficient for the normal use thereof by occupants in the
       Building,

(b)    elevator or escalator service for access to and egress from the Premises
       (if applicable),

(c)    heat, ventilation, air conditioning, lighting, electric power, domestic
       hot (or tempered) and cold running water, supplies and Janitor service in
       the Common Areas of the Building, during Normal Business Hours,

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

(e)    maintenance, repair, and replacement as set out in Article 6.04.

6.04   Maintenance, Repair and Replacement. Landlord shall operate, maintain,
repair and replace the systems, facilities and equipment necessary for the
proper operation of the office Building and for provision of Landlord's services
under Article 6.02 and 6.03 (except as such may be installed by or be the
property of Tenant), and shall be responsible for and shall expeditiously
maintain and repair the foundations, structure and roof of the Building and
repair damage to the Building which Landlord is obligated to insure against and
for which Landlord receives proceeds under Article 9.00, provided that:

(a)    If all or part of such systems, facilities and equipment are destroyed,
       damaged or impaired, Landlord shall have a reasonable time in which to
       complete the necessary repair or replacement.

(b)    Landlord may temporarily discontinue such services or any of them at such
       times as may reasonably be necessary.

(c)    Landlord shall use reasonable diligence in carrying out its obligations,
       but shall not be liable under any circumstances for any damage whether
       direct to any person or property for any failure to do so, or indirect or
       consequential damages.

(d)    No reduction or discontinuance of such services under this Article 6.04
       (a) or (b) shall be construed as a breach of Landlord's covenant for
       quiet enjoyment or as an eviction of Tenant or shall release Tenant from
       any obligation under this Lease.

6.05   Additional Services

(a)    (i) Tenant shall pay to Landlord forthwith on demand all charges as
       determined and allocated by Landlord acting reasonably in respect of all
       special services provided to or for the benefit of Tenant beyond building
       standard services the costs for which are included in Operating Costs,
       such special services

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       including, without limitation, charges for security, hoisting,
       supervision, elevator services, assistance of Building staff, waste
       removal, and receiving, storing and handling materials and articles and
       such services listed in Section 6.02 required beyond the building
       standard level provided to the tenants generally ("Additional Services"):
       and

       (ii) unless otherwise expressly agreed between Landlord and Tenant to the
       contrary, all work performed and materials supplied by Landlord for
       Tenant or otherwise respecting the Premises pursuant to the provisions
       hereof or otherwise shall be paid for by Tenant to Landlord forthwith
       upon demand at Landlord's cost for same plus ten percent (10%) for
       inspection and supervision plus ten percent (10%) for overhead and profit
       or such other reasonable amounts as may be charged by Landlord for
       overhead and profit from time to time.

(b)    Tenant shall not without Landlord's written consent install in the
       Premises equipment (including telephone equipment) which generates
       sufficient heat to affect the temperature otherwise maintained in the
       Premises by the air conditioning system as normally operated. Landlord
       may install supplementary air conditioning units, facilities or services
       in the Premises, or modify its air conditioning system, as may in
       Landlord's reasonable opinion be required to maintain proper temperature
       levels, and Tenant shall pay Landlord within ten (10) days of receipt of
       any invoice for the cost thereof, including installation, operation and
       maintenance expense.

(c)    If Landlord shall from time to time determine that the use of electricity
       or any other utility or service in the Premises is disproportionate to
       the use of other tenants, Landlord may separately charge Tenant for the
       excess costs the Landlord in its judgment attributes to such
       disproportionate use. At Landlord's request, Tenant shall install and
       maintain at Tenant's expense, metering devices for checking the use of
       any such utility or service in the Premises.

6.06   Alterations by Landlord. Landlord may from time to time:

(a)    make repairs, replacements, changes or additions to the structure,
       systems, facilities and equipment in the Premises,

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

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

6.07   Access by Landlord. Tenant shall permit Landlord to enter the Premises
outside normal business hours, and during normal business hours to examine,
inspect, and show the Premises to persons wishing to lease them, to provide
services or make repairs, replacements, changes or alterations as set out in
this Lease, and to take such steps as Landlord may deem necessary for the
safety, improvement or preservation of the Premises or the Building. Landlord
shall whenever possible consult with or give reasonable notice to Tenant prior
to such entry, but no such entry shall constitute a breach of Landlord's
covenant for quiet enjoyment or an eviction or entitle Tenant to any abatement
of Rent.

6.08   Energy, Conservation and Security Policies. Landlord shall be deemed to
have observed and performed the terms and conditions to be performed by Landlord
under this

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Lease, including those relating to the provision of utilities and services, if
in so doing it acts in accordance with a directive, policy or request of a
governmental or quasi-governmental authority or any utility in the fields of
energy, conservation or security.

6.09 Notwithstanding the provisions of this Article 6, the Landlord shall not be
responsible for any delay in effecting repairs or for non-performance during
periods of maintenance or inspections or other disruptions of service.

                  ARTICLE VII MAINTENANCE, REPAIR, ALTERATIONS
                           AND IMPROVEMENTS BY TENANT

7.01 Condition of Premises. Except to the extent that Landlord is specifically
responsible therefor under this Lease, Tenant shall maintain the Premises
including all trade fixtures and all glass therein and all improvements therein
in good order and condition and in a good and reasonable state of repair and
consistent with the general standards of first class office/retail buildings in
the area including:

(a)  repainting and redecorating the Premises and cleaning drapes and carpets at
     reasonable intervals as determined by the Landlord, and,

(b)  making repairs, replacements and alterations as needed, including those
     necessary to comply with the requirements of any governmental or
     quasi-governmental authority having jurisdiction.

7.02 Failure to Maintain Premises. If Tenant fails to perform any obligation
under Article 7.01, then on not less than ten (10) days notice to Tenant,
Landlord may enter the Premises and perform such obligation without liability to
Tenant for any loss or damage to Tenant thereby incurred, and Tenant shall pay
Landlord for the cost thereof, plus twenty percent (20%) of such cost for
overhead and supervision, within ten (10) days of receipt of Landlord's invoice
therefor.

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

(a)  comply with the requirements of any governmental or quasi-governmental
     authority having jurisdiction,

(b)  be made only with the prior written consent of Landlord,

(c)  equal or exceed the then current standard for Building, and,

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

     Any increase in property taxes on or fire or casualty insurance premiums
     for the Building attributable to such change, addition or improvement shall
     be borne by Tenant.

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7.04 Trade Fixtures and Personal Property. Subject to the prior written approval
of the Landlord, Tenant may install in the Premises trade fixtures and personal
property usual to a business or professional office in a proper manner, provided
that no such installation shall interfere with or damage the mechanical or
electrical systems or the structure of the Building. If Tenant is not then in
default hereunder, trade fixtures and personal property installed in the
Premises by Tenant may be removed from the Premises:

(a)  from time to time in the ordinary course of Tenant's business or in the
     course of reconstruction, renovation, or alteration of the Premises by
     Tenant, and,

(b)  during a reasonable period prior to the expiration of the Term, provided
     that Tenant promptly repairs at its own expense any damage to the Premises
     resulting from such installation and removal.

7.05 Construction Lien. Tenant shall pay all costs for work done or caused to be
done by Tenant in the Premises which could result in any lien or encumbrance on
Landlord's interest in the Land or Building or any part thereof, shall keep the
title to the Land or Building and every part thereof free and clear of any lien
or encumbrance in respect of such work, and shall indemnify and hold harmless
Landlord against any claim, loss, cost, demand and legal or other expense,
whether in respect of any lien or otherwise, arising out of the sum of material,
services or labor for such work. Tenant shall immediately notify Landlord of any
such lien, claim of lien or other action of which it has or reasonably should
have knowledge and which affects the title to the Land or Building or any part
thereof, and shall cause the same to be removed within five (5) days (or such
additional time as Landlord may consent to in writing), failing which Landlord
may take such action as Landlord deems necessary to remove the same by paying
such monies into court and the entire cost thereof shall be immediately due and
payable by Tenant to Landlord.

7.06 Signs and Directory. The Tenant covenants that it will not paint, display,
inscribe, place or affix any sign, symbol, notice or lettering of any kind
anywhere outside the Leased Premises, whether on the outside or inside of the
building, or within the Leased Premises so as to be visible from the outside of
the Leased Premises, with the exception only of an identification sign at the
entrance to the Leased Premises and a directory listing in the main lobby of the
building, in each case containing only the name of the Tenant, and to be subject
to the approval of the Landlord as to design, size, location and content. Such
identification sign and directory listing shall be installed at the expense of
the Tenant and the Landlord reserves the right to install them.

                               ARTICLE VIII TAXES

8.01 Landlord's Taxes. Landlord shall pay on or before the due date (subject to
participation by Tenant by payment of Occupancy Costs under Article 4.02) every
real estate tax, assessment, license fee and other charge, excepting Tenant's
Taxes under Article 8.02, which is imposed, levied, assessed or charged by any
governmental or quasi-governmental authority having jurisdiction and which is
payable in respect of the Term upon or on account of the Land or Building.

8.02 Tenant's Taxes. Tenant shall pay by due date every tax, assessment, license
fee, excise and other charge, however described, which is imposed, levied,
assessed or charged by any governmental or quasi-governmental authority having
jurisdiction and which is payable in respect of Term upon or on account of:

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

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

(c)  the Rent paid or payable by Tenant to Landlord for the Premises or for the
     use and occupancy of all or any part thereof; including under and by virtue
     of any Goods and Services Tax.

     Provided that if Landlord so elects by notice to Tenant, Tenant shall add
     any amounts payable under this Article 8.02 to the monthly installments of
     Base Rent payable under Article 4.01 and Landlord shall remit such amounts
     to the appropriate authorities.

8.03 Right to Contest. Landlord and Tenant shall each have the right to contest
in good faith the validity or amount of any tax, assessment, license fee, excise
fee and other charge which it is responsible to pay under this Article 8.00,
provided that no contest by Tenant may involve the possibility of forfeiture,
sale or disturbance of Landlord's interest in the Premises and that upon the
final determination of any contest by Tenant, Tenant shall immediately pay and
satisfy the amount found to be due, together with any costs, penalty and
interest.

                              ARTICLE IX INSURANCE

9.01 Landlord's Insurance. During the Term, Landlord shall maintain (subject to
participation by Tenant by payment of Occupancy Costs under Article 4.02)
liability insurance, fire insurance with extended coverage, boiler and pressure
vessel insurance, and other insurance on the Building and all property and
interest of Landlord in the Building with coverage and in amounts not less than
those which are from time to time acceptable in the Landlord's judgment in the
area in which the Building is located. Landlord may also maintain, in the same
manner, gross profits insurance for loss of rents payable to Landlord.

Policies for such insurance shall waive, to the extent available from Landlords
carrier(s), any right of subrogation against Tenant.

9.02 Tenant's Insurance. During the Term, Tenant shall maintain at its own
     expense:

(a)  fire insurance with extended coverage and water damage insurance in amounts
     sufficient to fully cover Tenant improvements and all property in the
     Premises which is not owned by Landlord, and,

(b)  liability insurance, with Landlord named as an additional insured, against
     claims for death, personal injury and property damage in or about the
     Premises, in amounts which are from time to time acceptable to a prudent
     tenant in the community in which the Building is located, but not less than
     two million dollars ($2,000,000.00) for death or injury to one (1) person,
     two million dollars ($2,000,000.00) for death or injury to more than one
     (1) person, and two million dollars ($2,000,000.00) for property damage, in
     respect of each occurrence.

     Policies for such insurance shall be in a form and with an insurer
     reasonably acceptable to Landlord, shall require at least fifteen (15) days
     written notice to Landlord of termination or material alteration during the
     Term, and shall waive, to the extent available, any right of subrogation
     against Landlord. If requested by

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      Landlord, Tenant shall from time to time promptly deliver to Landlord
      certified copies or other evidence of such policies, and evidence
      satisfactory to Landlord that all premiums thereon have been paid and the
      policies are in full force and effect.

                     ARTICLE X INJURY TO PERSON OR PROPERTY

10.01 Indemnity by Tenant. Tenant shall indemnify and save harmless Landlord
from and against every demand, claim, cause of action, judgment and expense, and
all loss and damage arising from:

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

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

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

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

10.02 Subrogation. The provisions of this Article 10.00 are subject to the
waiver of any right of subrogation against Tenant in Landlord's Insurance under
Article 9.01 and to the waiver of any right of subrogation against Landlord in
Tenant's Insurance under Article 9.02.

                      ARTICLE XI ASSIGNMENT AND SUBLETI1NG

11.01 Licenses. The Tenant shall not permit any part of the Premises to be used
or occupied by any person other than the Tenant, any assignees of subtenants
permitted under clause 11.02 and the employees of the Tenant and of any such
permitted assignee or subtenant, or permit any part of the Premises to be used
or occupied by any licensee or concessionaire, or permit any persons to be upon
the Premises other than the Tenant, such permitted assignees or subtenants and
their respective employees, customers and others having lawful business with
them.

11.02 Assignment and Sublease. The Tenant shall not assign this Lease or sublet
the whole or any part of the Leased Premises unless (1) it shall have received
or procured a bona fide written offer to take an assignment or sublease which is
not inconsistent with, and the acceptance of which would not breach any
provision of this Lease if this Article is complied with and which the Tenant
has determined to accept subject to this Article being complied with, and (2) it
shall have first requested and obtained the consent in writing of the Landlord
thereto. Any request for such consent shall be in writing and accompanied by a
true copy of such offer and the Tenant shall furnish to the Landlord all
information reasonably requested by the Landlord as to the responsibility,
reputation, financial

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standing and business of the proposed assignee or subtenant, and shall pay the
costs the Landlord reasonably incurs on the request. Within ten (10) days after
the receipt by the Landlord of such request for consent and of all information
which the Landlord shall have requested hereunder (and if no such information
has been requested, within fifteen (15) days after receipt of such request for
consent) the Landlord shall have the right upon written notice to the Tenant, if
the request is to assign this Lease or sublet the whole of the Premises, to
cancel and terminate this lease or if the request is to sublet a part of the
Premises only, to cancel and terminate this Lease with respect to such part, in
each case as of a termination date to be stipulated in the notice of termination
which shall be not less than sixty (60) days or more than ninety (90) days
following the giving of such notice and in such event the Tenant shall surrender
the whole or part as the case may be of the Premises in accordance with such
notice and rent shall be apportioned and paid to the date of surrender and, if a
part only of the Leased Premises is surrendered, rent payable under Clause 2
shall thereafter abate proportionately. If the Landlord shall not exercise the
foregoing right of termination, then the Landlord's consent to the Tenant's
request for consent to assign or sublet shall not be unreasonably withheld and
if such consent shall be given the Tenant shall assign or sublet, as the case
may be, only upon the Terms set out in the offer submitted to the Landlord as
aforesaid and not otherwise.

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

11.04 Change of Control of Tenant. Sales aggregating more than fifty percent
(50%) of the voting stock of Tenant, and other changes of control of Tenant
shall be deemed to be an assignment of this Lease and subject to the provisions
of Article 11.02.

                             ARTICLE XII SURRENDER

12.01 Possession. Upon the expiration or other termination of the Term, Tenant
shall immediately quit and surrender possession of the Premises in substantially
the good condition in which Tenant is required to maintain the Premises,
excepting only reasonable wear and tear and damage covered by Landlord's
insurance under Article 9.01. Upon such surrender, all right, title and interest
of Tenant in the Premises shall cease.

12.02 Trade Fixtures, Personal Property and Improvements. Subject to Tenant's
rights under Article 7.04, after the expiration or other termination of the Term
all of Tenant's trade fixtures, personal property and improvements remaining in
the Premises shall be deemed conclusively to have been abandoned by Tenant and
may be appropriated, sold, destroyed or otherwise disposed of by Landlord
without notice or obligation to compensate Tenant or to account therefor, and
Tenant shall pay to Landlord on written demand all costs incurred by Landlord in
connection therewith.

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

12.04 Payments After Termination. No payments of money by Tenant to Landlord
after the expiration or other termination of the Term or after the giving of any
notice (other than a demand for payment of money) by Landlord to Tenant, shall
reinstate, continue or

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extend the Term or make ineffective any notice given to Tenant prior to the
payment of such money. After the service of notice or the commencement of a
suit, or after final judgment granting Landlord possession of the Premises,
Landlord may receive and collect any sums of Rent due under the Lease, and the
payment thereof shall not make ineffective any notice, or in any manner affect
any pending suit or any judgment theretofore obtained.

                           ARTICLE XIII HOLDING OVER

13.01 Month-to-Month Tenancy. If with Landlord's written consent Tenant remains
in possession of the Premises after the expiration or other termination of the
Term, Tenant shall be deemed in the absence of a statement to the contrary in
such written consent, to be occupying the Premises on a month-to-month tenancy
only, at a monthly rental equal to the Rent as determined in accordance with
Article 4.00 or such other rental as is stated in such written consent, and such
month-to-month tenancy may be terminated by Landlord or Tenant on the last day
of any calendar month by delivery of at least thirty (30) days advance notice of
termination to the other.

13.02 Overholding Tenant. If without Landlord's written consent, Tenant remains
in possession of the Premises after the expiration or other termination of the
Term, Tenant shall be deemed to be occupying the Premises at a charge equal to
two times the monthly Rent determined in accordance with Article 4.00. Such may
be terminated by Landlord at any time upon demand, and may be terminated by
Tenant by delivery of at least ninety (90) days advance notice of termination.

13.03 General. Any month-to-month tenancy or overholding hereunder shall be
subject to all other terms and conditions of this Lease except any right of
renewal and nothing contained in this Article 13.00 shall be construed to limit
or impair any of Landlord's rights of re-entry or eviction or constitute a
waiver thereof.

                       ARTICLE XIV RULES AND REGULATIONS

14.01 Purpose. The Rules and Regulations in Exhibit C have been adopted by
Landlord for the safety, benefit and convenience of all tenants and other
persons in the Building.

14.02 Observance. Tenant shall at all times comply with, and shall cause its
employees, agents, licensees and invitees to comply with the Rules and
Regulations from time to time in effect.

14.03 Modification. Landlord from time to time, for the purposes set out in
Article 14.01, may amend, delete from, or add to the Rules and Regulations,
provided that any such modification:

(a)   shall not be repugnant to any other provision of this Lease,

(b)   shall be reasonable and have general application to all tenants of the
same type of premises as Tenant (retail or office) in the Building, and,

(c)   shall be effective only upon delivery of a copy thereof to Tenant at the
Premises.

14.04 Non-Compliance. Landlord shall use its best efforts to secure compliance
by all tenants and other persons with the Rules and Regulations from time to
time in effect, but shall not be responsible to Tenant for failure of any person
to comply with such Rules and Regulations.

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<PAGE>

                            ARTICLE XV EXPROPRIATION

15.01 Taking of Premises. If during the Term all of the Premises shall be
expropriated or taken for any public or quasi-public use under any statute or
law, or purchased under threat of such taking, this Lease shall automatically
terminate on the date on which the expropriating authority takes possession of
the Premises (hereinafter called the `date of such taking").

15.02 Partial Taking of Building. If during the Term only part of the Building
is taken or purchased as set out in Article 15.01, then:

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

(b)   if more than one-third (1/3) of the number of square feet in the Premises
      is included in such taking or purchase, Landlord and Tenant shall each
      have the right to terminate this Lease by giving the other at least thirty
      (30) days written notice thereof. If either party exercises its right of
      termination hereunder, this Lease shall terminate on the date stated in
      the notice, provided, however, that no termination pursuant to notice
      hereunder may occur later than sixty (60) days after the date of such
      taking.

15.03 Surrender. On any such date of termination under Article 15.01 or 15.02,
Tenant shall immediately surrender to Landlord the Premises and all interests
therein under this Lease. Landlord may re-enter and take possession of the
Premises and remove Tenant therefrom, and the Rent shall abate on the date of
termination, except that if the date of such taking differs from the date of
termination, then rent shall abate on the former date in respect of the portion
taken. After such termination, and on notice from Landlord stating the Rent then
owing, Tenant shall forthwith pay Landlord such Rent.

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

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

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<PAGE>

                  ARTICLE XVI DAMAGE BY FIRE OR OTHER CASUALTY

16.01 Limited Damage to Premises. If all or part of the Premises are rendered
untenantable by damage from fire or other casualty which, in the reasonable
opinion of Landlord's architect can be substantially repaired under applicable
laws and governmental regulations within one hundred eighty (180) days from the
date of such casualty, Landlord shall forthwith repair such damage other than
damage to improvements, furniture, chattels or trade fixtures which do not
belong to Landlord out of the proceeds of fire insurance paid to the Landlord.

16.02 Major Damage to Premises. If all or part of the Premises are rendered
untenantable by damage from fire or other casualty which, in the reasonable
opinion of Landlord's architect cannot be substantially repaired under
applicable laws and governmental regulations within one hundred eighty (180)
days from the date of such casualty then either Landlord or Tenant may elect to
terminate this Lease as of the date of such casualty by written notice delivered
to the other not more than thirty (30) days after receipt of such Architect's
opinion, failing which Landlord shall repair such damage other than damage to
improvements, furniture, chattels and trade fixtures which do not belong to
Landlord.

16.03 Abatement. If Landlord is required to repair damage to all or part of the
Premises under Article 16.01 or 16.02 the Rent payable by Tenant hereunder shall
be proportionately reduced to the extent that the Premises are thereby rendered
unusable by Tenant in its business, from the date of such casualty until
completion by Landlord of the repairs to the Premises (or the part thereof
rendered untenantable).

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

16.05 Limitation on Landlord's Liability. Except as specifically provided in
this Article 16.00, there shall be no reduction of Rent and Landlord shall have
no liability to Tenant by reason of any injury to or interference with Tenant's
business or property arising from fire or other casualty, howsoever caused, or
from the making of any repairs resulting therefrom in or to any portion of the
Building or the Premises. Notwithstanding anything contained herein, Rent
payable by Tenant hereunder shall not be abated, if the damage is caused by any
act or omission of Tenant, its agents, servants, employees or any other person
entering upon the Premises under express or implied invitation of Tenant.

                       ARTICLE XVII TRANSFERS BY LANDLORD

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

17.02 Effect of Sale, Conveyance or Assignment. A sale, conveyance or assignment
of the Building shall operate to release Landlord from liability from and after
the effective date thereof upon all of the covenants, terms and conditions of
this Lease, express or implied, except as such may relate to the period prior to
such effective date, and Tenant

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<PAGE>

shall thereafter look solely to Landlord's successor in interest in and to this
Lease. This Lease shall not be affected by any such sale, conveyance or
assignment, and Tenant shall attom to Landlord's successor in interest
thereunder.

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

17.04 Attornment. Subject to Article 17.05, if the interest of Landlord is
transferred to any person (herein called "Purchaser") by reason of foreclosure
or other proceedings for enforcement of any such mortgage or deed of trust, or
by delivery of a deed in lieu of such foreclosure or other proceedings, Tenant
shall immediately and automatically attorn to Purchaser.

17.05 Non-disturbance. No attornment by Tenant under Article 17.04 shall be
effective unless before the date of transfer to Purchaser, Purchaser delivers to
Tenant a written undertaking, binding upon Purchaser and enforceable by and for
the benefit of Tenant under applicable law, that this Lease and Tenant's rights
hereunder shall continue undisturbed while Tenant is not in default despite such
enforcement proceedings and transfer.

17.06 Effect of Attornment. Upon attornment under Article 17.04 this Lease shall
continue in full force and effect as a direct lease between Purchaser and
Tenant, upon all of the same terms, conditions and covenants as are set forth in
this Lease except that, after such attornment, Purchaser shall not be:

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

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

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

17.07 Execution of Instruments. The subordination and attornment provisions of
this Article 17.00 shall be self-operating and except as set out in Article
17.05 no further instrument shall be required. Nevertheless Tenant, on request
by and without cost to Landlord or any successor in interest, shall execute and
deliver any and all instruments further evidencing such subordination and (where
applicable hereunder) attornment.

                     ARTICLE XVIII NOTICES, ACKNOWLEDGEMENT
                             AUTHORITIES FOR ACTION

18.01 Notices. Any notice from one party to the other hereunder shall be in
writing and shall be deemed duly served if delivered personally to a responsible
employee of the party being served, or if mailed by registered or certified mail
addressed to Tenant at the Premises (whether or not Tenant has departed from,
vacated or abandoned the same) or the Landlord at the place from time to time
designated by the Landlord. Any notice shall be deemed to have been given at the
time of personal delivery or, if mailed, seven (7) days after the date of
mailing thereof. Either party shall have the right to designate by notice, in
the manner above set forth, a different address to which notices are to be
mailed.

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<PAGE>

18.02 Acknowledgements. The Tenant shall at any time and from time to time upon
not less than twenty (20) days prior notice from the Landlord execute,
acknowledge and deliver a written statement certifying that:

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

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

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

(d)   that there are not, to such party's knowledge, any defaults on the part of
      either party hereunder, or specifying such defaults if any are claimed.
      Any such statement may be relied upon by any prospective transferee or
      encumbrance of all or any portion of the Building, or any assignee of any
      such persons. If Tenant fails to timely deliver such statement, Tenant
      shall be deemed to have acknowledged that this Lease is in full force and
      effect, without modification except as may be represented by Landlord, and
      that there are no uncured defaults in Landlord's performance.

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

                              ARTICLE XIX DEFAULT

19.01 Costs and Charges. Tenant shall indemnify Landlord against all cost and
charges (including legal fees) lawfully and reasonably incurred in enforcing
payment of overdue Rent and in obtaining possession of the Premises after
default of Tenant or upon expiration or early termination of the Term of this
Lease or in enforcing any covenant proviso or agreement of Tenant herein
contained.

19.02 Right of Landlord to Perform Covenants. All covenants and agreements to be
performed by Tenant under any of the terms of this Lease shall be performed by
Tenant, at Tenant's sole cost and expense, and without any abatement of Rent. If
Tenant shall fail to perform any act on its part to be performed hereunder, and
such failure shall continue for ten (10) days after notice thereof from
Landlord, Landlord may (but shall not be obligated to do so) perform such act
without waiving or releasing Tenant from any of its obligations relative
thereto. All sums paid or costs incurred by Landlord in so performing such acts
under this Article 19.02, together with interest thereon at the rate set out in
Article 19.01 from the date each such payment was made or each sum cost incurred
by Landlord, shall be payable by Tenant to Landlord on demand.

19.03 Events of Default.  If and whenever:

(a)   part or all of the Rent hereby reserved is not paid when due, and such
      default continues for seven (7) days after the due date thereof,

(b)   the Term or any goods, chattels or equipment of Tenant is attached under
      any court order or if a writ of execution is issued against Tenant, or,

                                       16

<PAGE>

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

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

(e)   Tenant fails to observe, perform and keep each and every of the covenants,
      agreements, provisions, stipulations and conditions herein contained to be
      observed, performed and kept by Tenant (other than payment of Rent) and
      persists in such failure after ten (10) days written notice by Landlord
      requiring that Tenant remedy, correct, desist or comply (or if any such
      breach would reasonably require more than ten (10) days to rectify, unless
      Tenant commences rectification within the ten (10) day notice period and
      thereafter promptly and effectively and continuously proceeds with the
      rectification of the breach), then and in any of such cases, at the option
      of Landlord, the full amount of the current month's and the next ensuing
      three (3) months installments of Annual Rent shall immediately become due
      and payable and Landlord may immediately distain for the same, together
      with any arrears then unpaid; and Landlord may without notice or any form
      of legal process forthwith re-enter upon and take possession of the
      Premises or any part thereof in the name of the whole and remove and sell
      Tenant's goods, chattels and trade fixtures therefrom, any rule of law or
      equity to the contrary notwithstanding; and Landlord may seize and sell
      such goods, chattels and equipment of Tenant as are in the Premises and
      may apply the proceeds thereof to all Rent and other payments to which
      Landlord is then entitled under this Lease. Any such sale may be effected
      in the discretion of Landlord by public auction or otherwise, and either
      in bulk or by individual item, or partly by one means and partly by
      another all as Landlord in its entire discretion may decide. If any of
      Tenant's property is disposed of as provided in this Article 19.03, ten
      (10) days prior notice to Tenant of disposition shall be deemed to be
      commercially reasonable.

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

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

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<PAGE>

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

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

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

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

19.07 Remedies Cumulative. No reference to no exercise of any specific right or
remedy by Landlord shall prejudice or preclude Landlord from exercising or
invoking any other remedy in respect thereof, whether allowed at law or in
equity or expressly provided for herein. No such remedy shall be exclusive or
dependent upon any other such remedy, but Landlord may from time to time
exercise any one or more of such remedies independently or in combination.

                      ARTICLE XX EVENTS TERMINATING LEASE

20.01 If any policy of the insurance from time to time effected by the Landlord
upon the Building of which the Premises form a part shall be cancelled or about
to be cancelled by the insurer by reason of the use or occupation of the leased
premises by the Tenant or any assignee, subtenant or licensee of the Tenant or
anyone permitted by Tenant to be upon the premises and the Tenant after receipt
of written notice from the Landlord shall have failed to forthwith take such
steps in respect of such use or occupation as shall enable the Landlord to
re-instate or avoid cancellation of such policy of insurance, the Landlord may
at its option terminate this lease by leaving upon the Premises notice in
writing of such termination.

20.02 Prohibited Occupancy. If, without the written consent of the Landlord, the
Premises shall be used by any persons other than the Tenant or its permitted
assigns or subtenants or for any purposes other than that for which they were
leased, or occupied by any persons whose occupancy is prohibited by this Lease,
or if the Premises shall be vacated or abandoned, or remain unoccupied for
fifteen (15) days or more while capable of

                                       18

<PAGE>

being occupied, or if the term or any of the goods and chattels of the Tenant
shall at any time be seized in execution or attachment or if the Tenant is a
corporation and shall take any steps or suffer any order to be made for its
winding up or other termination of its corporate existence, then in any such
case the Landlord may, at its option, terminate this Lease by leaving upon the
Premises notice in writing of such termination and thereupon, and in addition to
the payment by the Tenant of Rent and other payment for which the Tenant is
liable under this Lease, Rent for the current month and the next ensuing three
(3) months rent shall immediately become due and be paid by the Tenant.

                           ARTICLE XXI MISCELLANEOUS

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

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

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

21.04 Applicable Law and Construction. This Lease shall be governed by and
construed under the laws of the jurisdiction in which the Building is located,
and its provisions shall be construed as a whole according to their common
meaning and not strictly for or against Landlord or Tenant. The words Landlord
and Tenant shall include the plural as well as the singular. If this Lease is
executed by more than one tenant, Tenants' obligations hereunder shall be joint
and several obligations of such executing tenants. Time is of the essence in
this Lease and each of its provisions. The captions of the Articles are included
for convenience only, and shall have no effect upon the construction or
interpretation of this Lease.

21.05 Entire Agreement. If there are any terms and conditions which at the date
of execution of this Lease are additional or supplemental to those set out on
the preceding pages and in Exhibits A, B, and C, such terms and conditions are
contained in Exhibit D attached hereto as part of this Lease. This Lease
contains the entire agreement between the parties hereto with respect to the
subject matter of this Lease. Tenant acknowledges and agrees that it has not
relied upon any statement, representation, agreement or warranty except such as
are set out in this Lease. If this Lease is made pursuant to an accepted Offer
to Lease, then the term "Lease" in this Article 21.05 shall be deemed to include
such accepted Offer to Lease, and such accepted offer shall survive execution of
this Lease, save that to the extent there is conflict between this Lease and
such accepted Offer to Lease, the provision of this Lease shall prevail.

21.06 Amendment or Modification. Unless otherwise specifically provided in this
Lease, no amendment, modification, or supplement to this Lease shall be valid or
binding

                                       19

<PAGE>

unless set out in writing and executed by the parties hereto in the same manner
as the execution of this Lease.

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

21.08 No Implied Surrender or Waiver. No provisions of this Lease shall be
deemed to have been waived by Landlord unless such waiver is in writing signed
by Landlord. Landlord's waiver of a breach of any term or condition of this
Lease shall not prevent a subsequent act, which would have originally
constituted a breach, from having all the force and effect of any original
breach. Landlord's receipt of Rent with knowledge of a breach by Tenant of any
term or condition of this Lease shall not be deemed a waiver of such breach.

Landlord's failure to enforce against Tenant or any other tenant in the Building
any of the Rules and Regulations made under Article 14.00 shall not be deemed a
waiver of such Rules and Regulations. No act or thing done by Landlord, its
agents or employees during the Term shall be deemed an acceptance of a surrender
of the Premises, and no agreement to accept a surrender of the Premises shall be
valid, unless in writing signed by Landlord. The delivery of keys to any of
Landlord's agents or employees shall not operate as a termination of this Lease
or a surrender of the Premises. No payment by Tenant, or receipt by Landlord, of
a lesser amount than the Rent due hereunder shall be deemed to be other than on
account of the earliest rent to fail due of any unpaid installment of rent, nor
shall any endorsement or statement on any cheque or any letter accompanying any
cheque, or payment as Rent, be deemed an accord and satisfaction, and Landlord
may accept such cheque or payment without prejudice to Landlord's right to
recover the balance of such Rent or pursue any other remedy available to
Landlord.

21.09 Tenant agrees with Landlord not to register this lease but the Tenant
shall have the right to register Notice of the Lease which the Landlord agrees
to execute in such form as the Landlord shall have approved at the Tenant's
expense.

21.10 Area Determination. All calculations of area for the purposes of this
Lease will be effected by Landlord on such reasonable basis as Landlord shall
determine. If any calculation or determination by the Landlord of the common
area or rentable area of any premises is disputed or called into question, it
shall be calculated or determined by the Landlord's architect from time to time
appointed for the purpose, whose certificate shall be conclusive.

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

21.12 Environment. The Tenant warrants that neither the Premises nor any other
part of the Building or Land will be used in any manner which will deposit in,
add to, emit or discharge into the natural environment or into the Building or
Land, any contaminant, including any solid, liquid, gas, odour, heat, sound,
vibration, radiation, or a combination thereof, resulting directly or indirectly
from the activities of the Tenant or its subtenants, assignees, agents,
contractors, invitees, or licensees which:

                                       20

<PAGE>

(a)  impairs the quality of the natural environment or the Building or the
     Building's systems;

(b)  causes damage to property, plant, or animal life;

(c)  causes material discomfort or harm to any person;

(d)  adversely impairs the health or safety of any person;

(e)  renders any property, plant or animal life unfit for human use; or

(f)  interferes with the normal conduct of business.

The Tenant will neither construct, alter or replace any structure, equipment,
apparatus, or mechanism which may emit or discharge any contaminant into any
part of the natural environment or the Building or Land nor alter any process or
rate of production with the result that a contaminant may be emitted or
discharged into the natural environment or the Building or Land without first
obtaining a Certificate of Approval for the methods or devices to be used to
control the emission or discharge from a Director appointed by the Ministry of
the Environment pursuant to Section 4 of the Environmental Protection Act,
R.S.O. c. 141, and providing a copy and obtaining a receipt therefore from the
Landlord.

The Tenant shall at the date of termination of this Lease, remove at its sole
cost and expense any and all waste resulting from the Tenant's use and
occupation of the Premises including, without limitation, ashes, garbage,
refuse, industrial or domestic waste.

The Tenant shall comply at all times with the provisions of the Environmental
Protection Act, R.S.O., 1980, c. 141, including any and all regulation made from
time to time pursuant to Section 146 c (iii) and any amendments thereto.

The Tenant agrees to indemnify the Landlord against any costs or expenses of any
nature arising as a result of any use or condition caused by the Tenant, after
Commencement Date, of the Building or Land violating any applicable federal,
provincial, municipal, or local laws, regulations, orders or approvals of
authorities having jurisdiction over environmental matters or arising as a
result of the Tenant's failure to comply with any of the provision of this
Section 21.12. The Tenant's obligations as set out in this Section 21.12 shall
survive the expiry or earlier termination of this Lease.

                                       21

<PAGE>

IN WITNESS WHEREOF the parties hereto have executed this indenture by affixing
their corporate seals by their authorized officers in that behalf, or by
Tenant's signature hereto, as the date first above written.

Witness                              LANDLORD:

                                     448048 ONTARIO INC. and FIRST UNITED REAL
                                     ESTATE  INVESTORS INC. (a Joint Venture
                                     operating as 4211 YONGE STREET)

/s/                                  Per: /s/
------------------------                  -------------------------------------
                                          Name:

                                     Per: /s/
                                          -------------------------------------
                                          Name: Brigs

                                     We have authority to bind the Corporation.

                                     TENANT:

                                     IMI INTERNATIONAL MEDICAL INNOVATIONS INC.

/s/                                  Per: /s/ Brent Norton
------------------------                  -------------------------------------

                                     Name: Brent Norton

                                     Per: _____________________________________
                                          Name:

                                      We have authority to bind the Corporation.

                                       22

<PAGE>

                                  Appendix "A"

                               [Map of floor plan]

                                       23

<PAGE>

                                 EXHIBIT "A (i)"

LANDLORD'S WORK

The Landlord at its own expense, shall conduct the following work in the
Premises (the Landlord's Work"):

1.   Supply and install standard base building standard carpet (minimum 28oz.)
     in the Premises, carpet to the selected by the Landlord and approved by the
     Tenant;

2.   Paint the entire Premises, colours to be selected by the Landlord;

3.   Construct a maximum of six (6) offices and one (1) storage room with base
     building doors and frames in the Premises, space plan to be finalized
     between the Landlord and the Tenant:

4.   Conduct all HVAC and lighting adjustments to the Premises as required under
     the final space plan;

5.   Supply an install a maximum of ten (10) base building electrical outlets in
     the Premises.

TENANT'S WORK

None.

                                EXHIBIT "A (ii)"

                      4211 YONGE STREET--LEGAL DESCRIPTION

     ALL AND SINGULAR that certain parcel or tract of land and premises situate,
lying and being in the City of North York, in the Municipality of Metropolitan
Toronto and being composed of Lots 16, 17, 18 and 19 Plan 3549 filed in the Land
Registry Office for the Registry Division of Toronto Boroughs (No. 64) and part
of Lot 12, Concession 1, East of Yonge Street, all of which is now designated as
Parts 2, 3, 9, and 10 on Plan 64R-8887 deposited in the Land Registry Office.

     SUBJECT to an easement in favour of the Municipality of Metropolitan
Toronto over the said Parts 3 and 9 on Plan 64R-8887 being a permanent
sub-surface easement or right in the nature of an easement on, under and across
the said parts as more particularly set forth in the registered Instrument No.
537301 North York.

                                       24

<PAGE>

                                   EXHIBIT "B"

                              LEASE OF OFFICE SPACE

SECTION 1.00      WORDS AND PHRASES

          1.01 Definitions In this Lease, including this Exhibit:

               (a)  "Architect" means such firm of professional architects or
                    engineers as Landlord may from time to time engage for
                    preparation of construction drawings for the building or for
                    general supervision of architectural and engineering aspects
                    and operations thereof and includes any consultant(s) from
                    time to time appointed by Landlord or the Architect whenever
                    such consultant(s) is acting within the scope of his
                    appointment and specialty.

               (b)  "Common Areas" means at any time those portions of the Land
                    and Building which are not leased or designated for lease to
                    tenants but are provided to and used in common by Landlord,
                    Tenant, and other tenants of the Building or by their
                    sublessees, agents, employees, customers or licensees,
                    whether or not the same are open to the general public, and
                    shall include any fixtures, chattels, systems, decor, signs,
                    facilities, or landscaping contained therein or maintained
                    or used in connection therewith, and shall be deemed to
                    include the city sidewalks adjacent to the Land and any
                    pedestrian walkway system, park, or other public facility in
                    respect of which Landlord is from time to time subject to
                    obligations in its capacity as owner or tenant of the Land
                    and/or Building as same may be altered, expanded, reduced or
                    improved from time to time by Landlord in its discretion.

               (c)  "Section" means a section of the Lease, including all
                    Exhibits and Schedules attached hereto.

               (d)  "Normal Business Hours" Except as otherwise specifically
                    provided in this Lease, normal business hours for the
                    Building shall be from 8:00 am. to 6:00 p.m. Monday through
                    Friday, excluding days which are legal or statutory holidays
                    in the jurisdiction in which the Building is located.

SECTION 2.00      DETERMINATION OF OCCUPANCY COST

          2.01 Definitions In this Section 2.

               (a)  "Taxes" means the aggregate of all taxes, rates, charges,
                    levies, and assessments including local improvements
                    accruing in respect of the calendar year in which the Fiscal
                    Year begins and imposed by any competent authority upon or
                    in respect of the Land and Building including any tax
                    imposed on the capital invested therein and business tax,
                    including Commercial Concentration Tax and Goods and
                    Services Tax, levied against the Landlord in its capacity as
                    Landlord. In determining Taxes, any corporate income,
                    profits or excess profit taxes imposed upon the income of
                    Landlord and any other impost of a personal nature charged
                    or levied against Landlord shall be excluded, except to the
                    extent that such is levied in lieu of

                                       25

<PAGE>

                   taxes, rates, charges, or assessments in respect of the Land
                   or improvements thereon.

               (b) "HVAC Cost" means the costs in the Fiscal Year for the
                   operation, repair, and maintenance of the systems for
                   heating, ventilating, and air conditioning the Building.

               (c) "Square Feet in the Building" means 161,557 rentable square
                   feet, provided that if from time to time there is a material
                   change in the rentable area of the Building, the Square Feet
                   in the Building shall, until any further change, mean the
                   number of rentable square feet in the Building determined on
                   the basis set out in Article 21.10 of the Lease, on
                   completion of that change.

               (d) "Square Feet in the Premises" means approximately 2,309
                   rentable square feet.

         2.02  Occupancy Costs Occupancy Costs for any Fiscal Year shall be an
               amount equal to Operating Cost in respect of such Fiscal Year
               multiplied by the rentable Square Feet in the Premises.

         2.03  Determination of Operating Cost "Operating Cost" means an amount
               per rentable square foot in respect of a Fiscal Year (calculated
               to the nearest cent) established in accordance with generally
               accepted accounting principles and confirmed in a certificate of
               Landlord, and equal to the sum of the following costs, divided by
               the Square Feet in the Building:

               (a) all net costs, charges, and expenses which arise out of the
                   operation, maintenance, repair and replacement of the Land
                   and Building, to the standards of a prudent landlord,
                   including without limitation Taxes, insurance and HVAC Costs,
                   and wages and salaries of all persons employed to operate,
                   repair, manage and maintain the Building, and including all
                   capital improvements to the Building, including all
                   machinery, equipment, facilities, systems and fixtures
                   located therein (with costs of a capital nature being
                   depreciated or amortized over the useful life of the
                   improvement and the depreciated or amortized amount and
                   interest being included);

               (b) all net expenses after the date any space in the Building was
                   first occupied by any tenant and properly allocable to such
                   Fiscal Year for any capital improvement or structural repair
                   to the Building required by any change in the laws, rules,
                   regulations or orders or any governmental or
                   quasi-governmental authority having jurisdiction or incurred
                   to reduce any item of cost or expense, which costs or
                   expenses shall be depreciated or amortized over the useful
                   life of the capital improvement or structural repair, and the
                   depreciated or amortized amount and interest being included;
                   and

               (c) a charge for offsite management overhead equal to fifteen
                   percent (15%) of the sum of 2.03 (a) and (b) in such Fiscal
                   Year.

         2.04  Limitation on Operating Cost In determining Operating Cost, the
               cost (if any) of the following shall be excluded except as
               specifically provided in Section 2.03:

                                       26

<PAGE>

             (a)  capital tax:

             (b)  depreciation or amortization of the Building or any component
                  of it (except for replacement cost of equipment or any items
                  requiring periodic replacement);

             (c)  ground rent (if any), depreciation, amortization, and interest
                  on and capital retirement of debt: and,

             (d)  tenant improvements and leasing commissions.

       2.05  When Services Are Not Provided Notwithstanding Section 2.03, when
             and if any service (such as janitor service) which is normally
             provided by Landlord to tenants of the Building in their premises:

             (a)  is not provided by Landlord in the Premises under the specific
                  terms of this Lease, in determining Occupancy Costs for Tenant
                  hereunder the cost of such service (except as it relates to
                  Common Areas) shall be excluded, and,

             (b)  is not provided by Landlord in a significant portion of the
                  Building, in determining Occupancy Costs for Tenant hereunder
                  the cost of such service shall be divided by the difference
                  between the Square Feet in the Building and the number of
                  rentable square feet (determined on the basis set out in
                  Section 3.01 of Exhibit B) in the Building in which Landlord
                  does not provide such service.

       2.06  Partial Fiscal Year If the Term commences after the beginning of or
             terminates before the end of a Fiscal Year, any amount payable by
             Tenant under Section 2.02 shall be adjusted proportionately.

SECTION 3.00      MIXED OFFICE/RETAIL BUILDINGS

       3.01  Should the Building combine a retail concourse and Office floors
             and any Operating Cost be incurred in respect of both component
             areas the Operating Cost shall be determined separately for each
             component area and operating costs for the office floors shall
             comprise:

             (a)  costs that are identifiable and separable as relating to the
                  office floors alone, and,

             (b)  percentage of costs that are identifiable as relating to both
                  component areas, and to the extent such cost relates to each
                  area and is inseparable between the areas.

SECTION 4.00      LOADING AND UNLOADING

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

       4.02  Landlord accepts no liability and is hereby relieved and released
             by Tenant in respect of the operation of delivery facilities for
             the Building, or the

                                       27

<PAGE>

                 adequacy thereof, or of the acts or omissions of any person or
                 persons engaged in the operation thereof, or in the acceptance,
                 holding, handling, delivery or dispatch, or failure of any
                 acceptance, holding, handling or dispatch, or any error,
                 negligence or delay therein.

         4.03    Landlord may from time to time make and amend regulations for
                 the orderly and efficient operation of the delivery facilities
                 for the Building, and may require the payment of reasonable and
                 equitable charges for delivery services and demurrage provided
                 by Landlord.

SECTION 5.00  UTILITY CHARGES AND SERVICES

         5.01    Notwithstanding the provisions of Article 6.02 (c) and (e) of
                 this Lease, during Term electricity provided to the Premises
                 (except that required for heating, ventilating, and air
                 conditioning other than supplemental heating, ventilating and
                 air conditioning equipment) shall be at Tenant's expense.

         5.02    If electricity to the Premises is not separately metered but is
                 supplied to Tenant through a meter common to other tenants in
                 the Building, Landlord shall pay the costs of such electricity
                 and apportion such costs pro rata among all those tenants
                 supplied through the common meter based on the proportion of
                 each tenants' floor space to the aggregate of floor space of
                 all the tenants so supplied. Upon receipt of Landlord's
                 statement of such apportionment, Tenant shall pay to Landlord
                 the amount shown on such statement. If Landlord shall from time
                 to time reasonably determine that the use of any electricity in
                 the Premises is disproportionate to the use of other tenants,
                 Landlord may adjust Tenant's share of the cost thereof from a
                 date reasonably determined by Landlord to take equitable
                 account of the disproportionate use.

         5.03    Landlord may elect by notice to Tenant:

                 (a)  to estimate the amounts for which Tenant is liable under
                      Section 6.02, and,

                 (b)  to require Tenant to pay those amounts in monthly
                      installments at the times and in the manner provided under
                      this Lease for Base Rent.

         5.04    Notwithstanding the provisions of Article 6.04 of this Lease,
                 the Tenant shall pay to Landlord upon receipt of Landlord's
                 statement a reasonable amount in respect of replacement of
                 building standard fluorescent tubes, light bulbs, and ballasts
                 in the Premises as required from time to time and of the costs
                 of cleaning, maintaining, and servicing of the electric
                 lighting fixtures in the Premises. Landlord's costs shall be
                 reasonable and consistent for all tenants of the Building
                 including Tenant.

                                       28

<PAGE>

                                                                     EXHIBIT "C"

                              RULES AND REGULATIONS

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

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

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

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

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

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

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

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

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

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

8. Heavy Articles   Tenants shall not place in or move about the premises,
without Landlord's prior written consent, any safe or other heavy articles
which, in

                                       29

<PAGE>

Landlord's reasonable opinion, may damage the building and Landlord may
designate the location of any heavy articles in the premises.

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

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

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

                                       30

<PAGE>

                                                                 EXHIBIT "C" TWO

12.    Furniture and Equipment  Tenant shall ensure that furniture and equipment
being moved into or out of the Premises is moved through such entrances,
elevators and corridors and at such times as may from time to time be designated
by Landlord, and by movers or a moving company approved by Landlord and shall
promptly pay or cause to be paid to Landlord the cost of repairing any damage in
the Building caused thereby.

13     Solicitations  Landlord reserves the right to restrict or prohibit
canvassing, soliciting or peddling in the Building.

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

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

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

17.    Dangerous or Immoral Activities  Tenant shall not make any use of the
Premises which involves the danger of injury to any person, not shall the same
be used for any immoral purpose.

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

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

                                       31

<PAGE>

                                                                     EXHIBIT "D"

                        SUPPLEMENTAL TERMS AND CONDITIONS
                        ---------------------------------

1)     BASE RENT

       The Tenant shall pay to the Landlord as Base Rent for the Premises the
       following sum of monies per annum in respect of the Term stated. The sum
       of monies is payable in advance without deductions in equal monthly
       installments, payable on the Commencement Date and on the first day of
       each calendar month. The sum shall be adjusted accordingly should the
       certificate of the Landlord's architect now or thereafter, disclose a
       variation in the area stated herein.

              YEARS     PER ANNUM         PER MONTH        NET RATE
                                          (per sq. ft.)

              1-2       $34,635.00        $2886.25          $15.00
              3         $36,944.00        $3078.67          $16.00
              4-5       $41,562.00        $3463.50          $18.00

2)     NET LEASE

       It is the intention of parties that save as otherwise provided herein the
       Lease shall be on a net basis, carefree to the Landlord.

3)     POST-DATED CHEQUES

       Upon request by the Landlord at any time throughout the Term of the
       Lease, the Tenant shall submit post-dated cheques towards the payment of
       all Base Rent and Additional Rent as required and due under the Lease.

4)     CONDITIONS TO TENANT'S RIGHTS

       Provided:

       a)     the Tenant pays the Rent and other sums payable hereunder and
              performs each and every of the covenants, provisos and agreements
              herein contained on the part of the Tenant to be paid and
              performed, punctually and in accordance with the provisions of
              this Lease;

       b)     the Tenant has not become insolvent or bankrupt, and has not made
              any assignment for the benefit of creditors and has not, becoming
              bankrupt or insolvent, taken the benefit of any Act now or
              hereafter in force for bankrupt or insolvent debtors;

       c)     a petition in bankruptcy has not been filed against the Tenant,
              and no proceedings have been commenced respecting the winding-up
              or termination of the existence of the Tenant;

       d)     no receiver or other person has taken possession or effective
              control of the assets or business of the Tenant or a substantial
              portion thereof pursuant to

                                       32

<PAGE>

              any security or other agreement or by any other means whatsoever,
              and there are no outstanding writs of execution against the
              Tenant;

       e)     The Tenant has not assigned the Lease or sublet or permitted a
              change in occupancy of any portion or portions of the Premises,
              and there has been no change in ownership of the majority of the
              capital stock of the Tenant and no change in the name under which
              the business on the Premises is conducted; and

       f)     The Tenant has continuously occupied all of the Premises for the
              conduct of business in accordance with the terms of this Lease;

       then and only then shall the rights conferred under Section 5 of this
       Exhibit D be applicable.

                                       33

<PAGE>

                                                               EXHIBIT "D" - TWO

       5)     OPTION TO EXTEND

       a)     Subject to the conditions outlined in the Landlord's standard
              Lease document, the Tenant shall have the right to extend this
              Lease for a further term of Five (5) years after the expiry of the
              Lease Term (the "Extension Term"). Such extension shall be on the
              terms and conditions of the Landlord's then current standard form
              of lease for the Building, and (i) there shall be no further right
              to extend after the expiry of the Extension Term, (ii) the Base
              Rent shall be such increased amount as determined pursuant to
              Subsection (b) of this Section, and (iii) there shall be no
              tenant's allowance or rent-free period for the Extension Term and
              the Premises shall be accepted by the Tenant in "as is" condition
              at the commencement of the Extension Term without the Landlord
              being required to perform any work. Such extension right shall be
              exercisable by notice to the Landlord by not later than six (6)
              months, and not earlier than twelve (12) months, prior to the
              expiry of the Lease Term hereof, failing which, such right shall
              be null and void and forever extinguished.

       b)     The Base Rent for the Extension Term shall be the greater of (I)
              Eighteen Dollars ($18.00) per rentable square foot, and (ii) the
              fair market rent for the Premises ("Fair Market Rent"). As used
              herein, Fair Market Rent means the annual rental which could
              reasonably be obtained by the Landlord for the Premises from a
              willing tenant or willing tenants dealing at arms' length with the
              Landlord in the market prevailing for a term commencing on the
              commencement date of the Extension Term, having regard to all
              relevant circumstances including the size and location of the
              Premises, the facilities afforded, the terms of the lease thereof
              (including its provisions for Additional Rent), the condition of
              the Premises and the extent and quality of the improvements
              therein (disregarding the Tenant's trade fixtures and also
              disregarding any deficiencies in the condition and state of repair
              of the Premises as a result of the Tenant's failure to comply with
              its obligations hereunder in respect of the maintenance and repair
              of the Premises) and having regard to rentals currently being
              obtained for space in the Building and for comparable space in
              other buildings comparably located. The Fair Market Rent for the
              Extension Term shall be as agreed upon between the Landlord and
              the Tenant or, failing agreement by the Landlord and the Tenant by
              not later than three (3) months prior to the expiry of the Term
              hereof, the Fair Market Rent shall be established in the manner
              set out in subsection (c) of this section. In the event that the
              Base Rent payable during the Extension Term has not been
              determined prior to the commencement of the Extension Term, then
              until such determination has been made, the Tenant shall pay Base
              Rent at a rate equal to one hundred and fifty percent (150%) of
              the Base Rent payable during the last year of the original Term
              hereof. Upon determination of the Base Rent for the Extension
              Term, either Landlord shall pay to the Tenant any excess, or
              Tenant shall pay to Landlord any deficiency, in the payments of
              Base Rent previously made by the Tenant.

       c)     Either the Landlord or the Tenant (the "Requesting Party") shall
              be entitled to notify the other party hereto (the "Receiving
              Party") of the name of an expert for the purpose of determining
              the Fair Market Rent. Within fifteen (15) days after such notice
              from the Requesting Party, the Receiving Party shall notify the
              Requesting Party either approving the expert proposed by the
              Requesting Party or naming another expert for the purpose of
              determining the Fair Market Rent. Should the Receiving Party fail
              to give notice to the Requesting Party within the

                                       34

<PAGE>

              said fifteen (15) day period, the expert named in the notice given
              by the Requesting Party shall perform the expert's functions
              hereinafter set forth. If the Landlord and the Tenant are unable
              to agree upon the selection of the expert within fifteen (15) days
              after such notice from the Receiving Party to the Requesting
              Party, then either party shall be entitled to apply to a court to
              appoint an expert in the same manner as an arbitrator may be
              appointed by a court under the Arbitrations Act of Ontario. The
              expert appointed, either by the Landlord and/or the Tenant or by a
              court, shall be qualified by education, experience and training to
              value real estate for rental purposes in the Province of Ontario
              and have been ordinarily engaged in the valuation of real property
              in the municipality in which the Building is located for at least
              the preceding five (5) years. Within thirty (30) days after being
              appointed, the expert shall make a determination of the Fair
              Market Rent for the Extension Term, without receiving evidence
              from either the Landlord or the Tenant.

                                       35

<PAGE>

                                                             EXHIBIT "D" - THREE

         The cost of such determination of the expert as to the Fair Market Rent
         and costs of the procedure shall be shared equally by the Landlord and
         the Tenant shall be conclusive and binding upon the Landlord and the
         Tenant and not subject to appeal.

    6)   FIXTURING PERIOD/RENT FREE PERIOD

         The Tenant shall be allowed a fixturing period commencing May 15, 2000
         until June 30, 2000 (the "Fixturing Period") for the purpose of
         modifying leasehold improvements, installing furniture, telephones,
         computers and other office equipment and the commencement of business
         if desired. The Fixturing Period shall be "gross rent" free whereby the
         Tenant shall not be responsible for Base Rent or Occupancy Costs or
         Parking during the Fixturing Period.

    7)   PARKING

         a)   Throughout the Term, the Tenant shall have the right to use a
              maximum of Five (5) spaces for parking Five (5) automobiles (the
              "Underground Parking Spaces") in the underground parking facility
              (the "Parking Garage"), at the Building in such locations as
              designated from time to time by the Landlord or the operator of
              the Parking Garage, and subject to the terms set out below. For
              each such Underground Parking Spaces, the Tenant shall pay to the
              Landlord, the prevailing monthly rates charged for the use of
              Underground Parking Spaces, the current monthly rental being
              Eighty-Five Dollars ($85.00) per space per month plus applicable
              taxes.

         b)   The Tenant shall ensure that the Landlord is at all times in
              possession of up-to-date information as to the owner, license
              plate number and description of each automobile authorized to use
              such Underground Parking Spaces.

         c)   The Landlord may from time to time make and amend such rules and
              regulations for the management and operation of the Parking Garage
              as the Landlord shall determine and the Tenant and all persons
              under its control, including without limitation, all users of the
              Underground Parking Spaces, shall be bound by and shall comply
              with all of such rules and regulations of which notice is given to
              the Tenant from time to time and all of such rules and regulations
              shall be deemed to be incorporated into and form a part of this
              Lease.

         d)   If the Tenant or any person permitted by the Tenant to use any of
              the Underground Parking Spaces fails to comply with the provisions
              of this Lease in respect of the Underground Parking Spaces,
              including without limitation, the rules and regulations from time
              to time applicable to the Parking Garage and the prompt payment of
              parking charges as required by the Landlord, then the Landlord
              shall have the right to terminate or suspend the privileges of the
              offending party to use the Parking Garage, provided that the
              exercise of such right by the Landlord shall not limit or affect
              the obligation of the Tenant hereunder to pay for all Underground
              Parking Spaces.

                                       36

<PAGE>

         e)   No motor vehicle other than a private passenger automobile station
              wagon or van shall be parked on or in any part of the Garage, nor
              shall any repairs other than emergency repairs immediately
              necessary for operation of a vehicle be made to any motor vehicle
              in or on the Parking Garage, and no motor vehicle shall be driven
              other than on a driveway or in the Parking Garage.

         f)   It is understood and agreed that the Landlord is not responsible
              for theft of or damage to the vehicle or its equipment or articles
              left in the vehicle.

         g)   It is understood and agreed that no vehicle powered by propane,
              hydrogen or natural gas are allowed in the Underground Parking
              Garage.

                                       37

<PAGE>

                                                                EXHIBIT "D" FOUR

8)   SECURITY DEPOSIT

     a)  The Tenant shall, upon execution of this Lease, deposit with the
         Landlord as security for faithful performance and observance by the
         Tenant of the terms, provisions, covenants and conditions of this
         Lease, and any modification, extension or renewal thereof, the sum of
         Five Thousand Dollars ($5,000.00) hereinafter called the "Deposit".

         b)  Retain, Use, or Apply    The Landlord may, at its sole option,
         retain, use, or apply the whole or any part of the Deposit to the
         extent required for payment of any:

             (i)   Base Rent

             (ii)  Occupancy Costs or Additional Rent

             (iii) Other sums as to which the Tenant is obligated to pay under
                   this Lease;

             (iv)  Sums that the Landlord may expend or may be required to
                   expend by reason of the Tenant's default of this Lease;

             (v)   Loss or damage that the Landlord may suffer by reason of the
                   Tenant's default, including, without limitation, any damages
                   incurred by the Landlord or deficiency resulting from the
                   reletting of the Premises, whether such damages or deficiency
                   accrues before or after summary proceedings or other re-entry
                   by the Landlord; or

             (vi)  Costs incurred by the Landlord in connection with the
                   cleaning or repair of the Premises upon expiration or earlier
                   termination of this Lease.

     c)  Remedies Neither Affect nor Are Affected by the Deposit    In no event
         shall the Landlord be obligated to apply the Deposit; and Landlord's
         right to bring an action or special proceeding to recover damages or
         otherwise to obtain possession of the Premises before or after the
         Landlord's declaration of the termination of this Lease for non-payment
         of rent or for any other reason shall not be affected by reason of the
         fact that the Landlord holds the Deposit.

     d)  Not a Limitation on Damages    The Deposit will not be a limitation of
         the Landlord's damages or other rights and remedies available under
         this Lease, or at law or equity; nor shall the Deposit be a payment of
         liquidated damages.

     e)  Not an Advance on Rent    The Deposit will not be an advance payment of
         the Rent.

     f)  Restore Used Portion   If the Landlord uses, applies, or retains all or
         any portion of the Deposit, the Tenant will restore the Deposit to its
         original amount within five (5) days after written demand from the
         Landlord. The

                                       38

<PAGE>

              Tenant shall be in Default if the Tenant fails to timely comply
              with this Paragraph.

         g)   Deposit May Be Commingled    The Landlord shall not be required to
              keep the Deposit separate from its own funds, and may commingle
              the Deposit with its own funds, except as required by law.

         h)   Non interest Bearing Account    The Landlord shall not be required
              to keep the Deposit in an interest-bearing account. If the
              Landlord keeps the Deposit in an interest-bearing account, the
              Landlord shall receive all of the interest that accrues.

                                       39

<PAGE>

                                                              EXHIBIT "D" - FIVE

      i) Return of the Deposit   If the Tenant shall fully and faithfully comply
      with all the terms, provisions, covenants, and conditions of this Lease,
      and any modification, extension, or renewal thereof, any part of the
      Deposit not used, applied, or retained by the Landlord shall be returned
      to the Tenant within sixty (60) days after the Tenant has discharged all
      of its obligations under this Lease, and any modification, extension, or
      renewal thereof, but no earlier than the termination date of this Lease or
      any renewal or extension thereof.

      j) Return the Deposit to Assignee    However, if the Landlord, in its sole
      discretion, has sufficient evidence that the Deposit has been assigned to
      an assignee of this Lease, the Landlord will return the deposit to the
      assignee and the Landlord shall thereupon be released by the Tenant from
      all liability for the return of the Deposit to the Tenant.

      k) Doesn't Make Lease Effective     The acceptance by the Landlord of the
      Deposit submitted by the Tenant shall not render this Lease effective
      unless and until the Landlord shall have executed and delivered to the
      Tenant a fully executed copy of this Lease.

9)    DEPOSIT

      The Tenant shall remit a payment to the Landlord or the Tenant's real
      estate agent in the amount of Fifteen Thousand Dollars ($15,000.00) as a
      deposit of application on account towards the first two (2) months Base
      (net) Rent, Additional Rent and G.S.T. due under this Lease with any
      excess being applied to the next month's Rent.

10)   ALTERATIONS OF THE BUILDING/RELOCATION OF THE PREMISES

      At any time or times, the Landlord shall have the right to make any
      changes in, additions to, deletions from or relocations of any part of the
      Building including the Premises and any of the Common Areas (any of which
      are herein referred to as "Changes") as the Landlord shall consider
      desirable. If the Landlord makes any Changes to the Premises, including
      relocation of the Premises, the Landlord shall ensure that the Premises,
      as affected by such Changes shall be substantially the same in size and
      shall be in all other material respects reasonably comparable to the
      Premises originally demised hereby, and Landlord shall make reasonable
      commercial efforts to relocate the Tenant to Premises that are in close
      and reasonable proximity to elevator banks of the floor in which the
      relocated Premises are situated.

      If the Premises are relocated as a result of such Changes, the Landlord
      shall be responsible for the direct cost of moving the Tenant to the
      relocated Premises and constructing replacement leasehold improvements
      therein, but not for any indirect costs or losses of claim on account of
      the exercise by the Landlord of any of its rights under this Section. The
      Landlord shall make any such Changes as expeditiously as is reasonably
      possible and so as to interfere as little as is reasonably possible with
      the Tenant's business on the Premises. The Landlord shall give the Tenant
      a minimum of ninety (90) days notice prior to relocating the Tenant.

                                                              EXHIBIT "D" - FIVE

                                       40

<PAGE>

         The Tenant acknowledges that portions of the Building may be under
         construction during the Term, and that such construction activities may
         cause temporary noise and disturbance to existing tenants of the
         Building. The Landlord will use reasonable efforts to minimize
         interference with the Tenant's occupation of the Premises as a result
         of such construction activities, but the Tenant acknowledges that in no
         event shall any noise or other disturbance caused by such construction
         constitute a breach of the Tenant's right to quiet enjoyment of the
         Premises.

                                       41<PAGE>

                                                                   Exhibit 10.23

           RETIREMENT AGREEMENT, dated as of February 28, 2002 (the
"Agreement"), by and among Acterna Corporation, a Delaware corporation (the
"Company"), and Allan M. Kline ("Executive").

                              W I T N E S S E T H:

           WHEREAS, the Company and Executive entered into an Employment
Agreement, dated as of November 1, 1998, (the "Employment Agreement");

           WHEREAS, Executive has previously been granted options (collectively,
the "Initial Options") to purchase 1,293,600 shares of the Common Stock, par
value $.01 per share (the "Common Stock"), pursuant to the Management Equity
Agreement, dated as of May 21, 1998, between the Company, Clayton, Dubilier &
Rice Fund V Limited Partnership, a Cayman Islands limited partnership (the
"Fund"), and Executive (the "Equity Agreement");

           WHEREAS, the Executive has also been granted options pursuant to the
Dynatech Corporation Amended and Restated 1994 Stock Option and Incentive Plan
(the "Stock Option Plan") to purchase 75,000 shares of the Common Stock
(collectively, the "Subsequent Options");

           WHEREAS, Executive has decided to retire from employment with the
Company and each of its subsidiaries, effective as of February 28, 2002;

           WHEREAS, pursuant to the Employment Agreement, Executive has agreed
to be bound by certain covenants and restrictions concerning non-competition,
non-disclosure and non-solicitation following any termination of his employment;

           WHEREAS, due to economic circumstances, the Company will be ceasing
its operations at the location at which the Executive has been performing his
services;

           WHEREAS, the Company and Executive wish to agree upon the
consequences of the termination of Executive's employment.

           NOW, THEREFORE, in consideration of the premises and the mutual
covenants and promises contained herein and for other good and valuable
consideration, the Company and Executive hereby agree as follows:

           1. Certain Definitions.

           For purposes of this Agreement, all capitalized terms used herein
without definition shall have the respective meanings assigned to such terms in
the Employment

<PAGE>

 Agreement.

         2.  Employment.

         (a) Executive hereby resigns, effective as of February 28, 2002, or
such earlier date as shall be mutually agreed (the "Termination Date"), from any
and all positions, other than as a director of the Company, he then holds with
the Company or any of its direct or indirect subsidiaries or affiliates.
Executive agrees to execute any document the Company shall reasonably request to
effect such resignation. Such resignation is hereinafter referred to as
"Executive's Resignation".

         (b) Executive will continue to serve as a director of the Company after
February 28, 2002, on the same terms and conditions, including compensation
afforded to other directors who are neither employees of the Company nor
employees or other persons affiliated with the Fund.

         3.  Consequences of Executive's Resignation Under Certain Agreements

         (a) In General. The Company and Executive each hereby acknowledges and
agrees that, for purposes of the Employment Agreement and Equity Agreement,
Executive's Resignation is and will be treated solely as a termination by the
Company Without Cause.

         (b) Payment of Accrued Obligations. Executive shall be entitled to
payment of his current base salary through the Termination Date. Executive shall
not be paid any annual bonus for the period from April 1, 2001 through the
Termination Date. Any accrued vacation amount shall also be paid on the
Termination Date. Executive agrees to submit to the Company any and all
expenses, which are business-related and reimbursable to Executive by the
Company, on or before March 31, 2002.

         (c) Continued Payments of Base Salary. Subject to Section 3(f) of this
Agreement, the Company shall make payments to Executive of his Average Base
Salary. The Average Base Salary is equal to $297,667, and shall be payable in
installments in accordance with the Company's regular payroll practices from the
Termination Date until February 28, 2004 (the "Salary Continuance Period").
Executive shall not have the right to make contributions to the Company's 401(k)
Savings Plan (the "401(k) Plan") and the Company's Supplemental 401(k) Savings
Plan (the "Supplemental Savings Plan") from the base salary payments made under
this Section 3(c).

         (d) Continued Payments in Respect of Bonus. Subject to Section 3(f) of
this Agreement, the Company shall pay to Executive, in 24 monthly installments,

                                        2

<PAGE>

commencing on March 1, 2002, and on the last day of the next 23 succeeding
months, an amount equal to one-twelfth of the Average Annual Bonus (the "Bonus
Payment"). The Average Annual Bonus is equal to $352,227, so that, subject to
Section 3(f) of this Agreement, each monthly Bonus Payment will be $29,352.25.

          (e) Continued Participation in Benefit Plans.

              (i)   During the period commencing on the Termination Date and
              ending on the earlier of (i) Executive's 65th birthday and (ii)
              the date of Executive's death, subject to timely payment by
              Executive of all premiums, contributions and other co-payments
              required to be paid by senior executives of the Company under the
              terms of such plans, the Executive shall be permitted to
              participate in the Company's medical insurance plans. If such
              continued participation is either not legally permissible or
              otherwise allowed under the terms of the applicable plan or any
              insurance policy or other arrangement, the Company will provide
              equivalent coverage from its general assets or another available
              source.

              (ii)  During the Salary Continuance Period, Executive shall be
              permitted to participate in the Company's group life insurance
              plan in accordance with its terms, on the same basis as similarly
              situated employees and shall continue to receive a monthly car
              allowance of $1300 per month.

              (iii) For purposes of the 401(k) Plan and Supplemental Savings
              Plan, February 28, 2002, will constitute the date of Executive's
              "termination." No contributions may be made to such plans after
              the Termination Date. Promptly after the Termination Date
              Executive shall be paid his balance residing in the Supplemental
              Savings Plan.

              (iv)  Executive's participation in any other employee or executive
              benefit or perquisite plan or program not specifically addressed
              in this Section 3(e) shall cease as of February 28, 2002.

          (f) Mitigation. If Executive obtains new employment (including
self-employment and services as a consultant) (i) during the Salary Continuance
Period, any salary continuation payments or Bonus Payments to which Executive is
entitled pursuant to Section 3(c) or 3(d) shall be reduced by the amount of any
compensation earned by Executive (whether paid currently or deferred) from any
subsequent employer or other Person for which Executive performs services,
including but not limited to consulting services, and (ii) the continued medical
benefits coverage to which Executive is entitled pursuant to Section 3(e) shall
be secondary to any other medical benefit coverage

                                        3

<PAGE>

available to Executive from any subsequent employer or other Person for which
Executive performs services, including, but not limited to, consulting services,
at any time after the Termination Date. Notwithstanding the foregoing, any
consideration paid to Executive by reason of his continued services as a
director pursuant to Section 2(b) shall not be offset against amounts owed to
him under Sections 3(c) or 3(d).

           4.  Options.

           (a) Vesting. The Company, the Fund and Executive each hereby
acknowledges and agrees that (i) as of the Termination Date, 1,080,600 shares
subject to the Initial Options and 30,000 shares subject to the Subsequent
Options (collectively, the "Aggregate Options") are or will become vested or
exercisable (the "Vested Options") and (ii) 45,000 shares subject to the
Subsequent Options are not and will not become vested or exercisable (the
"Unvested Options"). All of the Unvested Options will be canceled and forfeited
on and as of the Termination Date without the payment of any consideration or
amount in respect thereof.

           (b) Termination.

               (i)   Each of the Vested Options which is an Initial Option shall
               terminate, and unless earlier exercised in accordance with its
               terms, be canceled on the earlier of: (x) its original
               termination date and (y) the later of (A) the six month
               anniversary of the date of the expiration of any initial lock-up
               period imposed on sales of Common Stock in connection with the
               first Public Offering and (B) the third anniversary of the
               Termination Date. Notwithstanding the foregoing all Vested
               Options which are intended to qualify as incentive stock options
               under the Internal Revenue Code of 1986, as amended, shall
               continue to be governed by the terms of their granting
               documents.

               (ii)  Each of the Vested Options which is a Subsequent Option
               shall terminate, and unless earlier exercised in accordance with
               its terms, be canceled on the earlier of: (x) its original
               termination date and (y) the one year anniversary of the death of
               the Executive.

           (c) Repurchase.

               (i)   The Company and, by signing the acknowledgment of this
               Agreement where noted below, the Fund each waives its rights
               under the Equity Agreement to purchase any Covered Securities (as
               defined in the Equity Agreement).

                                        4

<PAGE>

          (ii) The Company and, by signing the acknowledgement of this Agreement
          where noted below, the Fund each waives its rights under the Stock
          Option Plan to purchase any of the vested Subsequent Options.

       5. Transfer Restrictions. All transfer restrictions in Sections 5(a) and
5(b) of the Equity Agreement shall lapse on February 28, 2002.

       6. Termination of Agreements.

       Effective as of the Termination Date, the Employment Agreement will
terminate in its entirety without any further liability or obligation on the
part of the Company or any of its respective subsidiaries or affiliates or
Executive thereunder, except that the provisions of Sections 9, 10, and 11 of
the Employment Agreement relating to non-competition and non-solicitation shall
survive Executive's termination and thereafter shall remain in full force and
effect as though incorporated herein and made a part hereof, with the
restrictive periods commencing on the Termination Date. The Equity Agreement
shall survive Executive's termination and thereafter shall remain in full force
and effect.

       7. Executive's Release of Claims.

       In consideration of the Company's release of claims against Executive
pursuant to Section 8 hereof, Executive hereby agrees to execute and deliver to
the Company on the Termination Date the Confidential General Release Agreement
attached hereto as Exhibit A.

       8. Release of Claims Against Executive.

       In consideration of and subject to Executive's execution and delivery of
the Confidential General Release Agreement attached hereto as Exhibit A, the
Company, on its own behalf and on behalf of each of its respective subsidiaries
and affiliates and each of their respective officers, directors, employees,
agents, representatives, successors and assigns (collectively, the "Releasors")
does hereby fully and generally release, settle, cancel, discharge and
acknowledge to be fully satisfied, and covenant not to sue any Releasee (as
defined below) in respect of, any and all claims, contractual or otherwise,
demands, costs, rights, causes of action, charges, complaints, losses, damages
and all liability of whatever kind and nature, whether known or unknown, which
any Releasor may have at the time of signing this Agreement, or had at any time
prior thereto, against any of Executive or Executive's agents, representatives,
assigns, heirs, executors or administrators (collectively, the "Releasees")
which may in any way be connected with or related to Executive's employment with
the Company or the severing or permanent discontinuance of that employment
(collectively, the "Claims"), other than the Excluded

                                        5

<PAGE>

Claims (as defined below). This release specifically includes Claims in respect
of any injuries which may now exist but which, at this time, are unknown,
unknowable, or unanticipated, or which may or may not develop further at some
time in the future, and all potential Claims concerning any unforeseeable or
unanticipated further development or consequences of known injuries, other than
the Excluded Claims.

          For purposes of this Agreement, the term "Excluded Claims" means
Claims (i) arising under the terms of this Agreement, (ii) related to
Executive's covenants under Sections 9, 10 and 11 of the Employment Agreement or
(iii) arising out of or related to Executive's willful misconduct in connection
with his employment by the Company. For purposes of this Agreement, no act or
failure to act by the Executive shall be considered "willful" unless if is done,
or omitted to be done, in bad faith and without reasonable belief that the
Executive's action or omission was in the best interests of the Company.

          9. Entire Agreement; Related Documents.

          This Agreement (including Exhibit A hereto), Sections 9, 10 and 11 of
the Employment Agreement, which survive the execution of this Agreement (and
which are treated as though incorporated herein and made a part hereof) and the
agreements governing the terms of the Aggregate Options that are Vested Options
constitute the entire agreement among the parties hereto with respect to the
subject matter hereof. Except as otherwise expressly provided herein, all prior
correspondence and proposals (including summaries of proposed terms) and all
prior promises, representations, understandings, arrangements and agreements
relating to such subject matter (including but not limited to those made to or
with Executive by any other person or entity) are merged herein and superseded
hereby.

          10. Miscellaneous; Binding Effect; Assignment.

          (a) Assignment and Successors. This Agreement shall be binding on and
inure to the benefit of the Company and its respective successors and permitted
assigns. This Agreement shall also be binding on and inure to the benefit of
Executive and his heirs, executors, administrators and legal representatives.
This Agreement shall not be assignable by any party hereto without the prior
written consent of the other parties hereto. The Company may effect such an
assignment without prior written approval of Executive upon the transfer of all
or substantially all of its business and/or assets (whether by purchase, merger,
consolidation or otherwise).

          (b) Governing Law. This Agreement shall be governed by and construed
in accordance with the laws of the Commonwealth of Massachusetts, without giving
effect to its principles or rules of conflict of laws to the extent such
principles or rules would

                                        6

<PAGE>

require or permit the application of the laws of another jurisdiction.

       (c) Taxes. The Company may withhold from any payments made under this
Agreement all federal, state, city or other applicable taxes as shall be
required by law.

       (d) Amendments. No provision of this Agreement may be modified, waived or
discharged unless such modification, waiver or discharge is approved by the
Board of Directors of the Company and is agreed to in writing by Executive. No
waiver by any party hereto at any time of any breach by any other party hereto
of, or compliance with, any condition or provision of this Agreement to be
performed by such other party shall be deemed a waiver of similar or dissimilar
provisions or conditions at the same or at any prior or subsequent time. No
waiver of any provision of this Agreement shall be implied from any course of
dealing between or among the parties hereto or from any failure by any party
hereto to assert its rights hereunder on any occasion or series of occasions.

       (e) Severability. In the event that any one or more of the provisions of
this Agreement shall be or become invalid, illegal or unenforceable in any
respect, the validity, legality and enforceability of the remaining provisions
contained herein shall not be affected thereby.

       (f) Notices. Any notice or other communication required or permitted to
be delivered under this Agreement shall be (i) in writing, (ii) delivered
personally, by courier service or by certified or registered mail, first-class
postage prepaid and return receipt requested, (iii) deemed to have been received
on the date of delivery or on the third business day after the mailing thereof,
provided that the party giving such notice or communication shall have attempted
to telephone the party or parties to which notice is being given during regular
business hours on or before the day such notice or communication is being sent,
to advise such party or parties that such notice is being sent, and (iv)
addressed as follows (or to such other address as the party entitled to notice
shall hereafter designate in accordance with the terms hereof):

       (A) if to the Company, to it at:

           Acterna Corporation
           20410 Observation Drive
           Germantown, Maryland 20876
           Attention: General Counsel

       (B) if to Executive, to him at:

                                        7

<PAGE>

           Copies of any notices or other communications given under this
Agreement shall also be given to:

                Clayton, Dubilier & Rice, Inc.
                375 Park Avenue
                New York, New York 10152
                Attention: Mr. Brian D. Finn

                and

                Debevoise & Plimpton
                919 Third Avenue
                New York, New York 10022
                Attention: Franci J. Blassberg, Esq.

           (g)  Counterparts. This Agreement may be executed in counterparts,
each of which shall be deemed an original and all of which together shall
constitute one and the same instrument.

           (h ) Headings. The section and other headings contained in this
Agreement are for the convenience of the parties only and are not intended to be
a part hereof or to affect the meaning or interpretation hereof.

           IN WITNESS WHEREOF, the Company has duly executed this Agreement by
its authorized representatives and Executive has hereunto set his hand, in each
case effective as of the date first above written.

                                               ACTERNA CORPORATION

                                               By:
                                                   ____________________________
                                                    Name:
                                                    Title:

                                               ________________________________
                                               Allan M. Kline

                                               ACKNOWLEDGED and, for purposes of

                                        8

<PAGE>

                                    Sections 4, 5, 7, and 9 agreed

                                    CLAYTON DUBILIER &RICE
                                    FUND V LIMITED PARTNERSHIP

                                    By:________________________________
                                        Name:
                                        Title:

                                        9

<PAGE>

                                                                       EXHIBIT A

                     Confidential General Release Agreement

         THIS CONFIDENTIAL GENERAL RELEASE AGREEMENT (hereinafter "Agreement")
is made and entered into this 28/th/ day of February, 2002 by and between
Acterna Corporation, a Delaware corporation (the "Company"), and Allan M. Kline
(the "Executive") (collectively, hereinafter the "Parties").

                              W I T N E S S E T H :

         WHEREAS, the Parties have determined that it is in their mutual
interest for Executive's employment with the Company and each of its direct or
indirect subsidiaries (the Company and such subsidiaries collectively referred
to as the "Companies") to terminate, effective as of February 28, 2002;

         WHEREAS, in connection with the termination of his employment,
Executive is entitled to certain payments and benefits under the terms of the
Employment Agreement, dated as of November 1, 1998, by and between the Company
and Executive (the "Employment Agreement");

         WHEREAS, the Company and Executive have entered into a Retirement
Agreement, dated as of the date hereof, to which this Confidential General
Release Agreement is attached as Exhibit A (the "Retirement Agreement"),
providing for, among other things, certain additional compensation, benefits and
rights of and to Executive identified therein in connection with the termination
of his employment (such additional compensation, benefits and rights, the
"Additional Benefits");

         IN CONSIDERATION THEREOF, the Companies desire to settle, conclude and
obtain the final release of all possible matters and claims which Executive has
now or may have in the future, whether known or unknown against any of the
Companies;

         NOW, THEREFORE, in consideration of the Company's promise to provide
the Additional Benefits to Executive pursuant to the Retirement Agreement, the
premises and promises herein contained, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, IT
IS AGREED AS FOLLOWS:

         1. The Company shall provide the Additional Benefits to Executive.

         2. In return for the receipt of such Additional Benefits, Executive, on
his own behalf and on behalf of each of his agents, representatives, assigns,
heirs, executors and administrators (the "Releasors"), does hereby fully and
generally release, settle, cancel, discharge and acknowledge to be fully
satisfied, and covenant

<PAGE>

not to sue any Releasee (as defined below) in respect of, any and all claims,
contractual or otherwise, demands, costs, rights, causes of action, charges,
complaints, losses, damages and all liability of whatever kind and nature,
whether known or unknown, which he may have at the time of signing this
Agreement, or had at any time prior thereto, against any of the Company, any
subsidiary or affiliate of the Company, any successor or assign of any such
entity or any of their respective current or former employees, directors,
officers, attorneys, agents or other representatives (collectively, the
"Releasees") which may in any way be connected with or related to (i)
Executive's employment with the Company or any of their respective subsidiaries
or the severing or permanent discontinuance of that employment or any of the
events or circumstances leading thereto, (ii) Executive's purchase or holding of
shares (the "Shares") of common stock of the Company (the "Common Stock"), (iii)
the grant to Executive of options (the "Options") to purchase additional shares
of Common Stock (the "Option Shares"), the vesting, exercisability or other
right or obligation of any Releasor in connection with the Options, or the
Option Shares and the cancellation of the Unvested Options pursuant to the
Retirement Agreement, (iv) the Employment Agreement, or (v) the Management
Equity Agreement, dated as of May 21, 1998, between the Company, Clayton,
Dubilier & Rice Fund V Limited Partnership, a Cayman islands limited
Partnership, and Executive (collectively, the "Claims"), other than the Excluded
Claims (as defined below). This release specifically includes Claims in respect
of all personal injuries and consequences thereof, including death and pain and
suffering, and any injuries which may now exist but which, at this time, are
unknown, unknowable, or unanticipated, or which may or may not develop further
at some time in the future, and all potential Claims concerning any
unforeseeable or unanticipated further development or consequences of known
injuries, other than the Excluded Claims.

         Without limiting the generality of the foregoing, it is expressly
agreed and understood that this release includes, but is not limited to, any
Claim before any court, government agency or in any other forum, including but
not limited to, Claims under Title VII of the Civil Rights Act of 1964, as
amended, 42 U.S.C.(S)2000 et seq. (Race and sex discrimination); the Age
Discrimination in Employment Act 29 U.S.C.(S)621 et seq. (age discrimination),
the National Labor Relations Act, as amended, 29 U.S.C.(S)141 et seq. (union and
collective activity), the Equal Pay Act of 1963, 29 U.S.C.(S)201 et seq. (equal
pay), the Americans with Disabilities Act, 42 U.S.C.(S) 12101 (disability
discrimination), the Rehabilitation Act of 1973, 29 U.S.C.(S)701 (disability
discrimination), the Civil Rights Acts of 1866 and 1871, as amended, 29
U.S.C.(S)1981 et seq. (civil rights), the Consolidated Omnibus Budget
Reconciliation Act of 1985, as amended, (COBRA-group health insurance), the

                                        2

<PAGE>

Employee Retirement and Income Security Act, as amended, 29 U.S.C. (S) 1001 et
seq. (employee benefits), the Fair Labor Standards Act, as amended, 29 U.S.C.
(S) 201 et seq. (minimum wage, overtime pay and working hours), the Family
Medical Leave Act of 1993, as amended, 42 U.S.C. (S) 2601 et seq. (leaves of
absence), the Massachusetts Human Rights Act, as amended, actions for race,
color, religion, age, sex, national origin and handicap discrimination or for
work-related injuries or payment of wages arising under state law, for wrongful
discharge based upon an implied contract or public policy, and any other
federal, state or local statute, public policy, order, regulation, tort or
contract claim, in each case, other than the Excluded Claims.

         For purposes of this Agreement, the term "Excluded Claims" means (i)
Claims under the terms of the Retirement Agreement (including, without
limitation, claims under the terms and conditions of any agreement relating to
Options that remain outstanding after the date hereof pursuant to the terms of
the Retirement Agreement), and (ii) any Claims for indemnification or
contribution with respect to any liability incurred by Executive as a director,
officer or employee of the Company.

         3.  Executive understands, agrees and acknowledges that this Agreement
is intended to include in its effect, without limitation, claims and causes of
action which he does not know of or suspect to exist in his favor at the time of
executing this Agreement, and that this Agreement contemplates extinguishment of
all such claims and causes of action.

         4.  Executive understands, agrees and acknowledges that by signing this
Agreement he is not relying on any representation, promise or statement, either
oral or written, not contained in this Agreement or the Retirement Agreement.

         5.  Executive understands, agrees and acknowledges that:

         (A) he has been encouraged by representatives of the Company to have
             this Agreement reviewed by legal counsel of his own choosing and
             that he has been given ample time to do so prior to signing it;

         (B) he has had the opportunity to negotiate concerning the terms of
             this Agreement;

         (C) he has been provided the opportunity to take up to twenty-one (21)
             days to consider this Agreement, but has elected to waive such full
             21 day period by executing this Agreement;

                                        3

<PAGE>

     (D)  he shall have the right to revoke this Agreement within seven (7) days
          following the date he executes this Agreement. Any revocation of this
          Agreement must be in writing and received by the Company by the close
          of business on the seventh day following the execution of this
          Agreement and shall be delivered to Secretary, c/o Acterna
          Corporation, 20410 Observation Drive, Germantown, Maryland 20876. Upon
          any revocation in accordance herewith, Executive's right to the
          Additional Benefits shall terminate, the Retirement Agreement will be
          rendered void and without effect and the Employment Agreement and
          Equity Agreement will continue in full force and effect unamended by
          the Retirement Agreement and this Agreement; and

     (E)  by signing this Agreement, he represents that he fully understands the
          terms and conditions stated in it and intends to be legally bound by
          them.

     6. Executive represents and warrants to the Company that he has not engaged
in any acts of dishonesty or in willful and serious misconduct, which misconduct
has caused or is reasonably expected to result in direct or indirect material
injury to the Company or any of its affiliates. For and in consideration of the
representations and promises made by Executive herein and other good and
valuable consideration, except as otherwise expressly provided herein, the
Company hereby waives, releases and forever discharges Executive and Executive's
heirs, successors and assigns of and from all actions, causes of actions, suits,
debts sums of money, accounts, bonds, bills, covenants, contracts,
controversies, agreements, promises, damages, judgments, claims and demands
whatsoever, in law in equity, whether known or unknown, of every kind and nature
whatsoever, including any claims that may be brought on the Company's behalf by
any third party, relating to Executive's employment with or services (including
as a director) for the Company and any of its Subsidiaries, or under the
Employment Agreement or the Equity Agreement ("Company Claims"), provided,
however, that the foregoing release shall not apply to any Company Claim arising
out of or under the Retirement Agreement (including, without limitation, the
portions of the Employment Agreement or the Equity Agreement incorporated
therein by reference) or this Agreement.

     7. Executive and the Company each represents to the other that he or it has
not heretofore assigned or transferred or purported to assign or transfer, to
any person or entity, any of the Claims or Company Claims, any portion thereof,
or any interest therein.

     8. Executive agrees that he will not make any untruthful and disparaging
statements about the Company or any of its Affiliates or any clients,
competitors, suppliers, employees or former employees of the Company or of any
of its Affiliates to any such person or any other persons (including but not
limited to the press or other

                                        4

<PAGE>

media). The Company agrees that it will not make any untruthful and disparaging
statements about Executive to any person (including but not limited to the press
or other media).

     9.  Any breach by Executive or the Company of a condition of this Agreement
with an attendant failure to remedy the breach within ten (10) days of receiving
notice of it from the other Party shall subject the breaching Party to any and
all equitable and/or monetary relief required to prevent further damage to the
other Party and to compensate same for any damages suffered as a consequence of
the breach of this Agreement.

     10. Executive and the Company are of the mutual understanding and agreement
that the provisions of the Retirement Agreement provide Executive with rights
and benefits in addition to those otherwise committed to him under any other
agreement with the Company or any affiliate (including, without limitation, the
Employment Agreement and the Equity Agreement).

     11. Nothing in the Retirement Agreement or this Agreement shall be
construed as an admission of any improper action or conduct by Executive or by
the Company, the Fund or any of their respective affiliates, subsidiaries, joint
venturers, or directors, officers, employees, agents, representatives or assigns
of any violation or noncompliance with any obligation, legal or otherwise.

     12. This Agreement shall be governed by and construed in accordance with
the laws of the Commonwealth of Massachusetts, without giving effect to its
principles or rules of conflict of laws to the extent such principles or rules
would require or permit the application of the laws of another jurisdiction.

     13. The Parties intend that the invalidity or unenforceability of any
provision of this Agreement shall not affect or render invalid or unenforceable
any other provision.

                                        5

<PAGE>

     14. This Agreement shall be binding upon and inure to the benefit of the
Parties hereto and their respective heirs, administrators, representatives,
executors, successors and assigns.

     IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed
as of the day and year first above written.

IN THE PRESENCE OF:                             ACTERNA CORPORATION

                                                By:
                                                    Name:
Date:                                               Title:

IN THE PRESENCE OF:
                                                Allan M. Kline

Date:

                                        6

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