Document:

<PAGE>
                                                                   Exhibit 10.14

                                                                  EXECUTION COPY

                              AMENDED AND RESTATED
                                LEASE AGREEMENT

                                 by and between

                             PG-NOM (ALBERTA), INC.,

             an Alberta corporation, as nominee for PG-TRUST (DE),

             a trust formed under the laws of the State of Delaware

                                   as LANDLORD

                                       and

                          CWD WINDOWS AND DOORS, INC.,

                            a Canadian corporation,

                                    as TENANT

                           Premises: Calgary, Alberta

                        Dated as of: March__________, 2005

                        Effective as of : August 27, 2004

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                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                               Page
                                                                               ----
<S>  <C>                                                                       <C>
 1.  Demise of Premises......................................................    1
 2.  Certain Definitions.....................................................    1
 3.  Title and Condition.....................................................    8
 4.  Use of Leased Premises; Quiet Enjoyment.................................   10
 5.  Term....................................................................   10
 6.  Basic Rent..............................................................   11
 7.  Additional Rent.........................................................   11
 8.  Net Lease; Non-Terminability............................................   13
 9.  Payment of Impositions..................................................   13
10.  Compliance with Laws and Easement Agreements; Environmental Matters.....   14
11.  Liens; Recording........................................................   16
12.  Maintenance and Repair..................................................   17
13.  Alterations and Improvements............................................   17
14.  Permitted Contests......................................................   19
15.  Indemnification.........................................................   19
16.  Insurance...............................................................   20
17.  Casualty and Condemnation...............................................   24
18.  Termination Events......................................................   25
19.  Restoration.............................................................   26
20.  Intentionally Omitted...................................................   27
21.  Assignment and Subletting; Waiver of Landlord's Liens...................   27
22.  Events of Default.......................................................   30
23.  Remedies and Damages Upon Default.......................................   32
24.  Notices.................................................................   36
25.  Estoppel Certificate....................................................   36
26.  Surrender...............................................................   36
27.  No Merger of Title......................................................   37
23.  Books and Records.......................................................   37
29.  Determination of Value..................................................   38
30.  Non-Recourse as to Landlord.............................................   39
31.  Landlord's Financing....................................................   40
32.  Subordination: Non-Disturbance and Attornment...........................   40
</TABLE>

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<TABLE>
<S>  <C>                                                                       <C>
33.  Tax Treatment; Reporting................................................   40
34.  Permitted Leasehold Mortgage............................................   41
35.  Rights of Permitted Leasehold Mortgagee.................................   41
36.  Grants and Releases of Easement.........................................   44
37.  Intentionally Omitted...................................................   45
38.  Post-Closing Obligations................................................   45
39.  Miscellaneous...........................................................   47
</TABLE>

EXHIBITS

     Exhibit "A"    - Land
     Exhibit "B"    - Machinery and Equipment
     Exhibit "C"    - Schedule of Permitted Encumbrances
     Exhibit "D"    - Rent Schedule
     Exhibit "E-l"  - Form of Subordination Attornment and Non-Disturbance
                      Agreement
     Exhibit "E-2"  - Tenant Estoppel Certificate
     Exhibit "F"    - Post-Closing Obligations

                                      -ii-

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      AMENDED AND RESTATED LEASE AGREEMENT, made as of this ____________ day of
March, 2005, effective the 27th day of August, 2004, between PC-NOM (ALBERTA),
INC., an Alberta corporation as nominee for PG-TRUST (DE), a trust formed under
the laws of the State of Delaware ("Landlord"), with an address c/o W. P. Carey
& Co. LLC, 50 Rockefeller Plaza, 2nd Floor, New York, New York 10020, and CWD
WINDOWS AND DOORS, INC., a Canadian corporation, (singly and collectively, as
the context may require "Tenant"), with an address for notice purposes at care
of Ply Gem Holdings, Inc., 185 Platte Clay Way, Suite A, Kearney, Missouri,
64060 U.S.A.

                                   BACKGROUND:

            1. Landlord and Tenant entered into a certain Lease Agreement dated
August 27, 2004 (the "Original Lease") for the Leased Premises (as hereinafter
defined).

            2. Landlord and Tenant desire to amend and restate the Original
Lease in its entirety as hereinafter set forth.

                                 NOW, THEREFORE.

in consideration of the rents and provisions herein stipulated to be paid and
performed, Landlord and Tenant hereby covenant and agree as follows:

            1. Demise of Premises. Landlord hereby demises and lets to Tenant,
and Tenant hereby takes and leases from Landlord, for the term and upon the
provisions hereinafter specified, the following described property
(collectively, the "Leased Premises"): (a ) the premises described in Exhibit
"A" hereto, together with the Appurtenances (collectively, the "Land"); (b) the
buildings,structures and other improvements now or hereafter constructed on the
Land (collectively, the "Improvements"); and (c) the fixtures, machinery,
equipment and other property described in Exhibit "B" hereto (collectively, the
"Equipment").

            2. Certain Definitions.

                  "AACI" shall mean an Accredited Appraiser of the Appraisal
Institute of Canada.

                  "Acquisition Cost" shall mean $7,100,811.

                  "Acquisition Fee" shall mean $334,593.

                  "Additional Rent" shall mean Additional Rent as defined in
Paragraph 7.

                  "Adjoining Property" shall mean all sidewalks, driveways,
curbs, gores and vault spaces adjoining any of the Leased Premises.

                  "Affiliate" shall mean any Person which shall (i) control,
(ii) be under the control of, or (iii) be under common control with Tenant (the
term "control" as used herein shall be deemed to mean ownership of more than
50% of the outstanding voting stock of a corporation

                                      -1-

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or other majority equity and control interest if such Person is not a
corporation) and the power to direct or cause the direction of the management or
policies of such Person.

                  "Alterations" shall mean all changes, additions, improvements
or repairs to, all alterations, reconstructions, renewals, replacements or
removals of and all substitutions or replacements for any of the Improvements or
Equipment, both interior and exterior, structural and non-structural, and
ordinary and extraordinary.

                  "Appurtenances" shall mean all tenements, hereditaments,
easements, rights-of-way, rights, privileges in and to the Land, including (a)
easements over other lands granted by any Easement Agreement and (b) any
streets, ways, alleys, vaults, gores or strips of land adjoining the Land.

                  "Assignment" shall mean any assignment of rents and leases
from Landlord to a Lender which (a) encumbers any of the Leased Premises and
(b) secures Landlord's obligation to repay a Loan, as the same may be amended,
supplemented or modified from time to time.

                  "Basic Rent" shall mean Basic Rent as defined in Paragraph 6.

                  "Basic Rent Payment Date" shall mean Basic Rent Payment Date
as defined in Paragraph 6.

                  "Business Days" shall mean any day except Saturdays, Sundays
and legal holidays on which banks are generally not open for business in the
City of Calgary.

                  "Canadian Funds" shall mean immediately available funds which
at the time of payment are legal tender for the payment of public and private
debts in Canada.

                  "Capital Tax" shall mean any tax or taxes exigible under any
provincial or federal legislation based upon or computed by reference to the
paid-up capital or place of business of the Landlord, as determined for the
purposes of such tax, or based upon or computed by reference to the taxable
capital employed or invested in Canada, as determined for the purposes of such
tax, or any similar tax levied, imposed or assessed in the future in lieu
thereof, or in addition thereto by any governmental authority and includes for
greater certainty, the tax imposed of under Parts 1.3 and VI of the Income Tax
Act (Canada). Provided, however, that Capital Tax shall be calculated as though
the Leased Premises were the only asset of the Landlord in excess of any minimum
taxable capital.

                  "Casualty" shall mean any loss of or damage to any property
(including the Leased Premises) included within or related to the Leased
Premises as a result of any fire, earthquake or other event of casualty.

                  "Commencement Date" shall mean Commencement Date as defined in
Paragraph 5.

                  "Condemnation" shall mean (a) any taking of all or a portion
of any of the Leased Premises (i) in or by expropriation, condemnation or other
eminent domain proceedings pursuant to any Law, general or special, or (ii) by
reason of any agreement with any expropriating body or condemnor in settlement
of or under threat of any such expropriation, condemnation or other eminent
domain proceeding, or (b) any conveyance in lieu of

                                      -2-

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expropriation or condemnation. The Condemnation shall be considered to have
taken place as of the later of the date actual physical possession is taken by
the expropriating body or condemnor, or the date on which the right to
compensation and damages accrues under the law applicable to the Leased
Premises.

                  "Condemnation Notice" shall mean notice or knowledge of the
institution of or intention to institute any proceeding for Condemnation.

                  "Costs" of a Person or associated with a specified transaction
shall mean all reasonable costs and expenses incurred by such Person or
associated with such transaction, including without limitation, legal fees and
expenses, court costs, brokerage fees, escrow fees, title insurance premiums,
mortgage commitment fees, mortgage points, recording fees and transfer taxes,
but excluding the internal administrative costs (including overhead) of such
Person, as the circumstances require.

                  "CPI" shall mean CPI as defined in Exhibit "D" hereto.

                  "Defalt Rate" shall mean the Default Rate as defined in
Paragraph 7(a)(iv).

                  "Easement Agreement" shall mean any conditions, covenants,
restrictions, easements, declarations, licenses and other agreements listed as
Permitted Encumbrances or as may hereafter affect the Leased Premises.

                  "Environmental Law" shall mean (a) whenever enacted or
promulgated, any applicable federal, provincial, foreign and Local law, statute,
ordinance, rule, regulation, license, permit, authorization, approval, consent,
court order, judgment, decree, injunction, code, requirement or agreement with
any governmental entity, (i) relating to pollution (or the cleanup thereof), or
the protection of air, water vapour, surface water, groundwater, drinking water
supply, land (including land surface or subsurface), plant, aquatic and animal
life from injury caused by a Hazardous Substance or (ii) concerning exposure to,
or the use, containment, storage, recycling, reclamation, reuse, treatment,
generation, discharge, transportation, processing, handling, labeling,
production, disposal or remediation of Hazardous Substances, Hazardous
Conditions or Hazardous Activities, in each case as amended and as now or
hereafter in effect, and (b) any common law or equitable doctrine (including,
without limitation, injunctive relief and tort doctrines such as negligence,
nuisance, trespass and strict liability) that may impose liability or
obligations or injuries or damages due to or threatened as a result of the
presence of, exposure to, or ingestion of, any Hazardous Substance. The term
Environmental Law includes, without limitation, the Canadian Environmental
Protection Act, 1999, Environmental Protection and Enhancement Act (Alberta),
Water Act (Alberta) and Municipal Government Act (Alberta) as amended from time
to time, and any successor legislation.

                  "Environmental Violation" shall mean (a) any direct or
indirect discharge, disposal, spillage, emission, escape, pumping, pouring,
injection, leaching, release, seepage, filtration or transporting of any
Hazardous Substance at, upon, under, onto or within the Leased Premises, or from
the Leased Premises to the environment, in violation of any Environmental Law or
in excess of any reportable quantity established under any Environmental Law or
which is likely to result in any liability to Landlord, Tenant or Lender, any
Federal, provincial or local government or any other Person for the costs of any
removal or remedial action or natural resources damage or for bodily injury or
properly damage, (b) any deposit, storage, dumping, placement or use of any
Hazardous Substance at, upon, under or within the Leased Premises (or

                                      -3-

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which extends to any Adjoining Property) in violation of any Environmental Law
or in excess of any reportable quantity established under any Environmental Law
or which is likely to result in any liability to any Federal, provincial or
local government or to any other Person for the costs of any removal or remedial
action or natural resources damage or for bodily injury or property damage, (c)
the abandonment or discarding of any barrels, containers or other receptacles
containing any Hazardous Substances in violation of any Environmental Laws, (d)
any activity, occurrence or condition which is likely to result in any
liability, cost or expense to Landlord or Lender or any other owner or occupier
of the Leased Premises, or which is likely to result in a creation of a lien on
the Leased Premises under any Environmental Law, or (e) any violation of or
noncompliance with any Environmental Law.

                  "Equipment" shall mean the Equipment as defined in Paragraph
 1.

                  "Event of Default" shall mean an Event of Default us defined
in Paragraph 22(a).

                  "Expiration Date" shall mean Expiration Date as defined in
Paragraph 5(a).

                  "Fair Market Rental Value" shall mean thc fair market rental
value of the Leased Premises for the relevant Renewal Team determined in
accordance with the procedure specified in Paragraph 29.

                  "Fair Market Value Date" shall mean the date when the Fair
Market Rental Value is determined in accordance with Paragraph 29.

                  "Guarantee" shall mean the Guaranty and Suretyship Agreement
dated as of the date hereof from Guarantor to Landlord guaranteeing the payment
and performance by Tenant of all of Tenant's obligations under the Lease.

                  "Guarantor" shall collectively mean Ply Gem Holdings, Inc., a
Delaware corporation, MWM Holding, Inc., a Delaware corporation, Great Lakes
Window Inc., an Ohio corporation, MW Manufacturers Holding Corp., a Delaware
corporation, MW Manufacturers Inc., a Delaware corporation, Napco Window
Systems, Inc., a Delaware corporation, Kroy Building Products, Inc., a Delaware
corporation and Thermal-Gard Inc., a Pennsylvania corporation.

                  "Hazardous Activity" means any activity, process, procedure or
undertaking which directly or indirectly (a) procures, generates or creates any
Hazardous Substance; (b) causes or results in (or threatens to cause or result
in) the release, seepage, spill, leak, flow, discharge or emission of any
Hazardous Substance into the environment (including the air, ground water,
watercourses or water systems) (c) involves the containment or storage of any
Hazardous Substance; or (d) would cause the Leased Premises or any portion
thereof to become a hazardous waste treatment, recycling, reclamation,
processing, storage or disposal facility within the meaning of any Environmental
Law.

                  "Hazardous Condition" means any condition which would support
any claim or liability under any Environmental Law, including the presence of
underground storage tanks.

                                      -4-

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                  "Hazardous Substance" means (i) any substance, material,
product, petroleum, petroleum product, derivative compound or mixture, mineral
(including asbestos), chemical, gas, medical waste, or other pollutant, in each
case whether naturally occurring, man-made or the by-product of any process,
that is toxic, harmful or hazardous or acutely hazardous to the environment or
public health or safety or (ii) any substance supporting a claim under any
Environmental Law, whether or not defined as hazardous as such under any
Environmental Law. Hazardous Substances include, without limitation, any toxic
or hazardous waste, pollutant, contaminant, industrial waste, petroleum or
petroleum-derived substances or waste, radon, radioactive materials, asbestos,
asbestos containing materials, microbial matter (including but not limited to
mold, mildew and other fungi or bacterial matter which reproduces through the
release of spores or the splitting of cells), urea formaldehyde foam insulation,
lead and polychlorinated biphenyls.

                  "Impositions" shall mean the Impositions as defined in
Paragraph 9(a).
                  "Improvements" shall mean the Improvements as defined in
Paragraph 1.
                  "Indemnitee" shall mean an Indemnitee as defined in
Paragraph 15.

                  "Initial Term" shall mean Initial Term as defined in Paragraph
5(a).

                  "Insurance Requirements" shall mean the requirements of all
insurance policies required to be maintained in accordance with this Lease.

                  "Land" shall mean the Land as defined in Paragraph. 1.

                  "Landlord Expenses" shall mean (i) any cost or expense that is
the express obligation of Landlord under this Lease, (ii) debt service for any
indebtedness of Landlord, (iii) any Landlord Impositions, (iv) except as
expressly set forth in Paragraph 7(a)(i), administrative expenses of Landlord,
and (v) except as expressly set forth herein with respect to any initial
financing, costs incurred by Landlord in connection with financing, or
refinancing the Leased Premises.

                  "Landlord Impositions" shall mean: (a) any estate, gift or
inheritance tax of Landlord; (b) any transfer or other taxes incurred by
Landlord in connection with a conveyance of the fee interest in the Leased
Premises to any Person except Tenant or its designee, or a transfer of any
direct or indirect equity interests in Landlord to any Person except Tenant or
its designee, or any mortgage recording taxes incurred in connection with a
mortgage of Landlord's fee interest in the Leased Premises except for mortgage
recording taxes payable on the initial fee Mortgage; (c) any franchise tax, net
income tax, withholding tax, capital gains tax, gross receipts tax or similar
tax (other than any gross receipts tax or similar tax imposed in lieu of any tax
or imposition that Tenant is obligated to pay under Paragraph 9); provided, that
if at any time during the term of this Lease, the method of taxation shall be
such that there shall be assessed. levied, charged or imposed on Landlord a tax,
in lieu of real estate taxes or any other Imposition payable by Tenant, upon the
value of the Leased Premises, men all such levies and taxes or the part thereof
so measured or based shall be payable by Tenant, but only to the extent that
such levies or taxes would be payable if the Leased Premises were the only
property of Landlord, and Tenant shall pay and discharge the same as herein
provided.

                  "Law" shall mean any constitution, statute, rule of law, code,
ordinance, order, judgment, decree injunction, rule, regulation, policy,
requirement or administrative or

                                      -5-

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judicial determination, even if unforeseen or extraordinary, of every duly
constituted governmental authority, court or agency; now or hereafter enacted or
in effect.

                  "Lease" shall mean this Amended and Restated Lease Agreement.

                  "Leasehold Estate" shall mean Tenant's leasehold estate under
this Lease.

                  "Lease Year" shall mean, with respect to the first Lease Year,
the period commencing on the Commencement Date and ending an midnight on the
last day of the twelfth (12th) consecutive calendar month following the month
in which the Commencement Date occurred, and each succeeding twelve (12) month
period during the Term.

                  "Leased Premises" shall mean the Leased Premises as defined in
Paragraph 1.

                  "Legal Requirements" shall mean the requirements of all
present and future Laws (including but not limited to Environmental Laws and
Laws relating to accessibility to, usability by, and discrimination against,
disabled individuals) and all covenants, restrictions and conditions now or
hereafter of record which may be applicable to Tenant or to any of the Leased
Premises, or to the use, manner of use, occupancy, possession, operation,
maintenance, alteration, repair or restoration of any of the Leased Premises,
even if compliance therewith necessitates structural changes or improvements or
results in interference with the use or enjoyment of any of the Leased Premises
or requires Tenant to carry insurance other than as required by this Lease.

                  "Lender" shall mean any Person (and its respective successors
and assigns) which may, on or after the date hereof, make a Loan to Landlord or
be the holder of a Note.

                  "Limited Remedy Default" shall mean an Event of Default
specified in the following clauses of Paragraph 22(a): clause (iii) if the
misrepresentation is with respect to the penultimate sentence of Sections 2, 3,
4, 7 and 24 of the Lessee's Certificate, the first sentence of Section 3 or the
first or last sentence of Section 7 of the Lessee's Certificate, clause (iv),
clause (v)(B) clause (vi)(E), clause (ix)(B), clause (xi), clause (xiii) (if
such Event of Default is with respect to or arises as a result of a default
under Paragraphs 6 or 9 of the Guarantor's Certificate, Sections 3.03(ii),
3.04(iv), 4.01 (c) or 4.01 (d) of the Guaranty), or clause (xiv).

                  "Loan" shall mean any loan (or the portion thereof allocable
to the Leased Premises, if applicable) made by one or more Lenders to Landlord,
which loan is secured by a Mortgage and an Assignment and evidenced by a Note.

                  "Monetary Obligations" shall mean Rent and all other sums
payable by Tenant under this Lease to Landlord, to any third party on behalf of
Landlord or to any Indemnitee.

                  "Moody's" shall mean Moody's Investor Services, Inc.

                  "Mortgage" shall mean any mortgage or deed of trust from
Landlord to a Lender which (a) encumbers any of the Leased Premises and (b)
secures Landlord's obligation to repay a Loan, as the same may be amended,
supplemented or modified.

                                      -6-

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                  "Net Award" shall mean (a) the entire award payable to
Landlord or Lender by reason of a Condemnation whether pursuant to a judgment or
by agreement or otherwise, or (b) the entire proceeds of any insurance required
under clauses (i), (ii) (to the extent payable to Landlord or Lender),(iv), (v)
or (vi) of Paragraph I6(a), as the case may be, less any expenses incurred by
Landlord and Lender in collecting such award or proceeds.

                  "Note" shall mean any promissory note (or an allocable portion
thereof, if applicable) evidencing Landlord's obligation to repay a Loan, as the
same may be amended, supplemented or modified.

                  "Partial Condemnation" shall mean any Condemnation which does
not constitute a Termination Event.

                  "Permitted Encumbrances" shall mean those covenants,
restrictions, reservations, liens, conditions and easements and other
encumbrances, other than any Mortgage or Assignment, listed on Exhibit "C"
hereto (but such listing shall not be deemed to revive any such encumbrances
that have expired or terminated or are otherwise invalid or unenforceable).

                  "Permitted Leasehold Mortgage" shall mean any first lien,
mortgage, deed of trust, security deed, deed to secure debt, assignment,
security interest, pledge, financing statement, or any other instrument(s) or
agreement(s) intended to grant security for any obligation (including a
purchase-money or other promissory note) encumbering the Leasehold Estate, as
entered into, renewed, modified, consolidated, amended, extended, or assigned
from time to time.

                  "Permitted Leasehold Mortgagee" shall mean the holder of
Permitted Leasehold Mortgage, and its successors and assigns.

                  "Person" shall mean an individual, partnership, association,
corporation or other entity.

                  "Post-Closing Obligations" shall mean those obligations of
Tenant specified in Exhibit "F" hereto.

                  "Preapproved Assignee" shall mean Preapproved Assignee as
defined in Paragraph 21 (a)(i).

                  "Prepayment Premium" shall mean any payment (other than a
payment of principal and/or interest which Landlord is required to make under a
Note or a Mortgage) by reason of any prepayment by Landlord of any principal due
under a Note or Mortgage, and which may be (in lieu of such prepayment premium
or prepayment penalty) (a) a "make whole" or yield maintenance clause requiring
a prepayment premium or (b) a defeasance payment (such defeasance payment to be
an amount equal to the positive difference between (i) the total amount required
to defease a Loan and (ii) the outstanding balance of the Loan as of the date of
such defeasance, in the case of either (a) or (b) in an amount sufficient to
compensate the Lender for the loss of the benefit of the Loan due to a
 prepayment.

                  "Present Value" of any amount shall mean such amount
discounted by a rate per annum which is the lower of (a) the Prime Rate plus two
percent (2%) at the time such present value is determined or (b) eight percent
(8%) per annum.

                                      -7-

<PAGE>

                  "Prime Rate" shall mean the interest rate per annum as
published from time to time, in The Wall Street Journal as the "Prime Rate" in
its column entitled "Money Rate". The Prime Rate may not be the lowest rate of
interest charged by any "large U.S. money center commercial banks" and Landlord
makes no representations or warranties to that effect. In the event The Wall
Street Journal ceases publication or ceases to publish the "Prime Rate" as
described above, the Prime Rate shall be the average per annum discount rate
(the "Discount Rate" on ninety-one (91) day bills ("Treasury Bills") issued from
time to time by the United States Treasury at its most recent auction, plus
three hundred (300) basis points. If no such 91-day Treasury Bills are then
being issued, the Discount Rate shall be the discount rate on Treasury Bills
then being issued for the period of time closest to ninety-one (91) days.

                  "Province" shall mean the Province of Alberta, Canada.

                  "Relevant Date" shall mean the date on which Fair Market
Rental Value is determined in the event of any extension of this Lease pursuant
to Paragraph 5(b).

                  "Renewal Term" shall mean Renewal Term as. defined in
Paragraph 5.

                  "Rent" shall mean, collectively, Basic Rent and Additional
Rent.

                  "S&P" shall mean Standard and Poor's Rating Services.

                  "Site Assessment" shall mean a Site Assessment as defined in
Paragraph 10(c).

                  "Surviving Obligations" shall mean any obligations of Tenant
under this Lease, actual or contingent, which arise on or prior to the
expiration or prior termination of this Lease or which survive such expiration
or termination by their own terms.

                  "Tenant's Equipment" shall mean all trade fixtures, machinery,
office, manufacturing storage materials, handling and warehouse equipment which
are used by Tenant in the operation of its business, including any air
compressors and exhaust fans used by Tenant in the operation of its business.

                  "Term" shall mean the Initial Term and any exercised Renewal
Term.

                  "Termination Notice" shall mean Termination Notice as defined
in Paragraph 18(a).

                  "Third Party Purchaser" shall mean the Third Party Purchaser
as defined in Paragraph 21(h).

                  "U.S. Dollars" shall mean the legal currency of the United
States of America.

                  "Warranties" shall mean Warranties as defined in Paragraph
3(d).

            3.    Title and Condition.

                  (a) The Leased Premises are demised and let subject to (i) the
Mortgage and Assignment, (ii) the rights of any Persons in possession of the
Leased Premises,

                                      -8-

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(iii) the existing state of title of any of the Leased Premises, including any
Permitted Encumbrances, (iv) any state of facts which an accurate survey or
physical inspection of the Leased Premises might show, (v) all Legal
Requirements, including any existing violation of any thereof, and (vi) the
condition of the Leased Premises as of the commencement of the Term, without
representation or warranty by Landlord.

                  (b) Tenant acknowledges that the Leased Premises are in good
condition and repair at the inception of this Lease. LANDLORD LEASES AND WILL
LEASE AND TENANT TAKES AND WILL TAKE THE LEASED PREMISES AS IS. TENANT
ACKNOWLEDGES THAT LANDLORD (WHETHER ACTING AS LANDLORD HEREUNDER OR IN ANY OTHER
CAPACITY) HAS NOT MADE AND WILL NOT MAKE, NOR SHALL LANDLORD BE DEEMED TO HAVE
MADE, ANY WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED, WITH RESPECT TO ANY OF
THE LEASED PREMISES, INCLUDING ANY WARRANTY OR REPRESENTATION AS TO (i) ITS
FITNESS, DESIGN OR CONDITION FOR ANY PARTICULAR USE OR PURPOSE, (ii) THE QUALITY
OF THE MATERIAL OR WORKMANSHIP THEREIN, (iii) THE EXISTENCE OF ANY DEFECT,
LATENT OR PATENT, (iv) LANDLORD'S TITLE THERETO, (v) VALUE, (vi) COMPLIANCE WITH
SPECIFICATIONS, (vii) LOCATION, (viii) USE, (ix) CONDITION, (x) MERCHANTABILITY,
(xi) QUALITY, (xii) DESCRIPTION, (xiii) DURABILITY, (xiv) OPERATION, (xv) THE
EXISTENCE OF ANY HAZARDOUS SUBSTANCE, HAZARDOUS CONDITION OR HAZARDOUS ACTIVITY
OR (xvi) COMPLIANCE OF THE LEASED PREMISES WITH ANY LAW OR LEGAL REQUIREMENT;
AND ALL RISKS INCIDENT THERETO ARE TO BE BORNE BY TENANT. TENANT ACKNOWLEDGES
THAT THE LEASED PREMISES IS OF ITS SELECTION AND TO ITS SPECIFICATIONS AND THAT
THE LEASED PREMISES HAS BEEN INSPECTED BY TENANT AND IS SATISFACTORY TO IT. IN
THE EVENT OF ANY DEFECT OR DEFICIENCY IN ANY OF THE LEASED PREMISES OF ANY
NATURE WHETHER LATENT OR PATENT, LANDLORD SHALL NOT HAVE ANY RESPONSIBILITY OR
LIABILITY WITH RESPECT THERETO OR FOR ANY INCIDENTAL OR CONSEQUENTIAL DAMAGES
(INCLUDING STRICT LIABILITY IN TORT). THE PROVISIONS OF THIS PARAGRAPH 3(b) HAVE
BEEN NEGOTIATED, AND ARE INTENDED TO BE A COMPLETE EXCLUSION AND NEGATION OF ANY
WARRANTIES BY LANDLORD, EXPRESS OR IMPLIED, WITH RESPECT TO ANY OF THE LEASED
PREMISES, ARISING PURSUANT TO ANY LAW NOW OR HEREAFTER IN EFFECT OR ARISING
OTHERWISE.

                  (c) Tenant represents to Landlord that Tenant has examined the
title to the Leased Premises prior to the execution and delivery of this Lease
and has found the same to be satisfactory for the purposes contemplated hereby.
Tenant acknowledges that (i) fee simple title (both legal and equitable) to the
Leased Premises is in Landlord and that Tenant has only the leasehold right of
possession and use of the Leased Premises as provided herein, (ii) the
Improvements conform to all material Legal Requirements and all Insurance
Requirements, (iii) all easements necessary or appropriate for the use or
operation of the Leased Premises have been obtained, (iv) all contractors and
subcontractors who have performed work on or supplied materials to the Leased
Premises have been fully paid, and all materials and supplies have been

                                      -9-

<PAGE>

fully paid for, (v) the Improvements have been fully completed in all material
respects in a workmanlike manner, and (vi) all Equipment necessary or
appropriate for the use or operation of the Leased Premises has been installed
and is presently fully operative in all malarial respects.

                  (d) Landlord hereby assigns to Tenant, without recourse or
warranty whatsoever, all assignable warranties, guaranties, indemnities and
similar rights (collectively, "Warranties") which Landlord may have against any
manufacturers, seller, engineer, contractor or builder in respect of any of the
Leased Premises. Such assignment shall remain in effect until the expiration or
earlier termination of this Lease, whereupon such assignment shall cease and all
of the Warranties shall automatically revert to Landlord. In confirmation of
such reversion Tenant shall execute and deliver promptly any certificate or
other document reasonably required by Landlord. Landlord shall also retain the
right to enforce any Warranties upon the occurrence and during the continuance
of an Event of Default. Tenant shall use commercially reasonable efforts to
enforce the Warranties in accordance with their respective terms.

            4.    Use of Leased Premises: Quiet Enjoyment.

                  (a) Tenant may occupy and use the Leased Premises, for a
manufacturing and distribution facility with ancillary office, storage and
parking uses and for no other purpose without the prior written consent of
Landlord which shall not be unreasonably withheld or delayed. Tenant shall not
use or occupy or permit any of the Leased Premises to be used or occupied, nor
do or permit anything to be done in or on any of the Leased Premises, in a
manner which would or might (i) violate any Law or Legal Requirement, (ii) make
void or voidable or cause any insurer to cancel any insurance required by this
Lease, or make it difficult or impossible to obtain any such insurance at
commercially reasonable rates, (iii) make void or voidable, cancel or cause to
be cancelled or release any of the Warranties, (iv) cause structural injury to
any of the Improvements or (v) constitute a public or private nuisance or waste.

                  (b) Subject to the provisions hereof, so long as no Event of
Default has occurred and is continuing, Tenant shall quietly hold, occupy and
enjoy the Leased Premises throughout the Term, without any hindrance, ejection
or molestation by Landlord or anyone claiming through or under Landlord with
respect to matters that arise after the date hereof, provided that Landlord or
its agents may enter upon and examine any of the Leased Premises at such
reasonable times as Landlord may select and upon reasonable notice to Tenant
(except in the case of any emergency, in which event no notice shall be
required), but at all times accompanied by a representative designated by
Tenant, for the purpose of inspecting the Leased Premises, verifying compliance
or non-compliance by Tenant with its obligations hereunder and the existence or
non-existence of an Event of Default, showing the Leased Premises to
prospective Lenders and purchasers, making any repairs and taking such other
action with respect to the Leased Premises as is permitted by any provision
hereof.

            5.    Term.

                                      -10-

<PAGE>

                  (a) Subject to the provisions hereof, Tenant shall have and
hold the Leased Premises for an initial term (the "Initial Term") which
commenced on August 27, 2004 (the "Commencement Date") and ends on August 31,
2024 (the "Expiration Date").

                  (b) Provided that if, on or prior to the Expiration Date or
any other Renewal Date (as hereinafter defined) this Lease shall not have been
terminated pursuant to any provision hereof, then on the Expiration Date and on
the tenth (10th) anniversary of the Expiration Date (the Expiration Date and
such anniversary being a "Renewal Date"), the Term shall be deemed to have been
automatically extended for an additional period of ten (10) years (each such
extension, a "Renewal Term"), unless Tenant shall notify Landlord in writing at
least eighteen (18) months prior to the next Renewal Date that Tenant is
terminating this Lease as of the next Renewal Date. At Landlord's request at any
time after the giving of a notice of termination, Tenant shall execute a notice
in recordable farm confirming such termination. Any such extension of the Term
under this Paragraph 5(b) shall be subject to all of the provisions of this
Lease, as the same may be amended, supplemented or modified.

                  (c) If Tenant exercises its option pursuant to Paragraph 5(b)
not to have the Term automatically extended, or if an Event of Default occurs
and is continuing, then Landlord shall have the right during the remainder of
the Term then in effect and, in any event, Landlord shall have the right during
the last year of the Term, to (i) advertise the availability of the Leased
Premises for sale or reletting and to erect upon the Leased Premises signs
indicating such availability and (ii) show the Leased Premises to prospective
purchasers or tenants or their agents subject to the conditions in Paragraph
4(b) at such reasonable times as Landlord may select.

            6. Basic Rent. Tenant shall pay to Landlord, as annual rent ("Basic
Rent") for the Leased Premises during the Term, the amounts determined in
accordance with Exhibit "D" hereto. Basic Rent is payable quarterly in advance
on the twenty-fifth (25th) day of each September, December, March and June
during the Term for the next three (3) calendar months as set forth in said
Exhibit "D". The date that each payment of Basic Rent is due is hereinafter
referred to as a "Basic Rent Payment Date". Basic Rent for the period from the
Commencement Date to and including September 30, 2004 was paid on the
Commencement Date and quarterly payments of Basic Rent have been made through
March 31, 2005. Each such rental payment shall be made (a) at Landlord's sole
discretion, to Landlord at its address set forth above and/or to such one or
more other Persons, at such addresses and in such proportions as Landlord may
direct by ten (10) Business Days' prior written notice to Tenant (in which event
Tenant shall give Landlord notice of each such payment concurrent with the
making thereof), and (b) at Tenant's option, by a cheque hand delivered at least
two (2) Business Days before or mailed at least five (5) Business Days before
the applicable Basic Rent Payment Date, or on the applicable Basic Rent Payment
Date by wire transfer of Canadian Funds to an account designated by Landlord in
writing. Pro rata Basic Rent for the period from the date hereof through the
last day of the month  hereof shall be paid on the date hereof.

            7. Additional Rent.

                                      -11-

<PAGE>

            (a) Tenant shall pay and discharge, as additional rent
(collectively, "Additional Rent"):

                  (i) Except for Landlord's Expenses or as otherwise
specifically provided herein, all costs and expenses of Tenant, Landlord and any
other Persons specifically referenced herein which are incurred in connection or
associated with (A) the ownership, use, non-use, occupancy, possession,
operation, condition, design, construction, maintenance alteration, repair or
restoration of any of the Leased Premises, (B) the performance of any of
Tenant's obligations under this Lease, (C) any sale or other transfer of any of
the Leased Premises to Tenant under this Lease, (D) the prosecution, defense or
settlement of any litigation involving or arising from any of the Leased
Premises, this Lease, or the sale of the Leased Premises to Landlord unless such
litigation arises as a result of the gross negligence or willful misconduct of
Landlord, (E) the exercise or enforcement by Landlord, its successors and
assigns, of any of its rights under this Lease during the pendency of an Event
of Default, (F) any amendment to or modification or termination of this Lease
made at the request of Tenant, (G) Costs of Landlord's counsel incurred in
connection with any act undertaken by Landlord (or its counsel) at the request
of Tenant, or incurred in connection with any act of Landlord performed on
behalf of Tenant, (H) sales taxes payable by the Landlord on the purchase of
goods and services included in Additional Rent (excluding any such sales taxes
as are available to and claimed by the Landlord as a credit in determining the
Landlord's net tax liability on account of sales taxes but only to the extent
that such sales taxes are included in Additional Rent); (I) Capital Taxes, (J)
the review of Post-Closing Obligations, (K) an administrative fee of $10,000
payable to Landlord in connection with any Exchange and (L) any other items
specifically required to be paid by Tenant under this Lease;

                  (ii) after the date that is seven (7) days after all or any
portion of any installment of Basic Rent is due and not paid, a late charge in
an amount equal to three percent (3%) of the amount of such unpaid installment
or portion thereof, as liquidated damages in order to compensate Landlord for a
portion of the costs and expenses related to handling such late payment, the
amounts of which are difficult or impossible to measure;

                  (iii) in addition to the amounts payable under clauses
7(a)(ii) and (iv) a sum equal to any additional sums (including any late charge
payable on the portion of Basic Rent equal to installments of principal and
interest on the then outstanding Loan, default penalties, interest and fees of
lender's counsel) which are payable by Landlord to any Lender under any Note by
reason of Tenant's late payment or non-payment of Basic Rent or by reason of an
Event of Default, provided, however, that Tenant shall receive as a credit
against any late charge or default interest payable on the then outstanding Loan
an amount equal to the product of (x) the sum of the late charge paid pursuant
to Paragraph 7(a)(ii) and the amount of the default interest paid pursuant to
Paragraph 7(a)(iv) and (y) the ratio of the amount of the Loan to the
Acquisition Cost; and

                  (iv) interest at the rate (the "Default Rate") of three
percent (3%) over the Prime Rate per annum on the following sums until paid in
full: (A) all overdue installments of Basic Rent from the date that is (5)
Business Days after the respective due dates

                                      -12-
<PAGE>
thereof, (B) all overdue amounts of Additional Rent relating to obligations
which Landlord shall have paid on behalf of Tenant and delivered notice to
Tenant, and (C) all other overdue amounts of Additional Rent, from the date that
is ten (10) Business Days after the date upon which Landlord shall have notified
Tenant in writing of such overdue amount.

                  (b) Tenant shall pay and discharge (i) any Additional Rent
referred to in Paragraph 7(a)(i) when the same shall become due, provided that
amounts which are billed to Landlord or any third party, but not to Tenant,
shall be paid within ten (10) Business Days after Landlord's written request for
payment thereof, and (ii) any other Additional Rent, within; ten (10) Business
Days after Landlord's written request for payment thereof.

                  (c) In no event shall amounts payable under Paragraph
7(a)(ii), (iii) and (iv), or elsewhere in this Lease exceed the maximum amount
permitted by applicable Law.

            8. Net Lease Non-Terminability.

                  (a) This is a net lease and all Monetary Obligations shall be
paid without notice or demand (except as expressly set forth herein) and without
set-off, counterclaim, recoupment, abatement, suspension, deferment, diminution,
deduction, reduction or defense (collectively, a "Set-Off").

                  (b) Except as expressly set forth in this Lease, this Lease
and the rights of Landlord and the obligations of Tenant hereunder shall not be
affected by any event or for any reason or cause whatsoever foreseen or
unforeseen.

                  (c) The obligations of Tenant hereunder shall be separate and
independent covenants and agreements, all Monetary Obligations shall continue to
be payable in all events (or in lien thereof, Tenant shall pay amounts equal
thereto), and the obligations of Tenant hereunder shall continue unaffected
unless the requirement to pay or perform same shall have been terminated
pursuant to an express provision of this Lease. All Rent payable by Tenant
hereunder shall constitute "rent" for all purposes.

                  (d) Except as otherwise expressly provided in this Lease,
Tenant shall have no right and hereby waives all rights which it may have under
any Law (i) to quit, terminate or surrender this Lease or any of the Leased
Premises, or (ii) to any Set-Off of Any Monetary Obligations.

            9. Payment of Impositions. Tenant shall, before interest or
penalties are due thereon, pay and discharge all taxes (including real and
personal property, franchise, sales, goods and services, gross receipts or rent
taxes), all charges for any easement or agreement maintained for the benefit of
any of the Leased Premises, all assessments and levies, all permit, inspection
and license fees, all rents and charges for water, sewer, utility and
communication services relating to any of the Leased Premises, all ground rents
and all other public charges whether of a like or different nature, even if
unforeseen or extraordinary, imposed upon or assessed against (i) Tenant, (ii)
Tenant's leasehold interest in the Leased Premises, (iii) any of

                                      -13-
<PAGE>

the Leased Premises, (iv) Landlord as a result of or arising in respect of the
acquisition, ownership, occupancy, leasing, use, possession of any of the Leased
Premises or the sale of any of the Leased Premises or any part thereof to Tenant
or its designee or any activity conducted on any of the Leaed Premises, or
imputed to or payable by Landlord as the result of its ownership of the Leased
Premises or the Rent, or (v) any Lender by reason of any Note, Mortgage,
Assignment or other document evidencing or securing a Loan and which (as to this
clause (v)) Tenant has agreed to pay (collectively the "Imposition"): provided,
that (A) nothing herein shall obligate Tenant to pay Landlord Expenses, and (B)
so long as no Event of Default exists, Tenant shall enroll the Leased Premises
into the "TIPP" program and pay realty taxes to the applicable taxing authority
on a monthly basis in accordance with the "TIPP" program. Landlord shall have
the right to require Tenant to pay, together with scheduled installments of
Basic Rent, the amount of the gross receipts or rent tax, if any, payable with
respect to the amount of such installment of Basic Rent. If any Imposition may
be paid in installments without penalty, tenant shall have the option to pay
such Imposition in installments. In any event, Tenant shall be liable only for
those Impositions which accrue or become due and payable during the Term, and
Landlord shall reimburse Tenant as of the expiration of the Term for any
Impositions paid by Tenant that accrue on account of the period from and after
the expiration of the Term. Tenant shall prepare and file all tax reports
required by governmental authorities which relate to the Impositions. Tenant
shall deliver to Landlord (1) copies of all settlements and notices pertaining
to the Impositions which may be issued by any governmental authority within ten
(10) Business Days after Tenant's receipt thereof, (2) receipts for payment of
all taxes required to be paid by Tenant hereunder within thirty (30) Business
Days after the due date thereof (including the monthly due date under the "TIPP"
program) and (3) receipts for payment of all other Impositions within ten (10)
Business Days after Landlord's request therefor.

            10. Compliance with Laws and Easement Agreements: Environmental
Matters.

                  (a) Tenant shall, at its expense, comply with and conform to,
and cause the Leased Premises and any other Person occupying any part of the
Leased Premises to comply with and conform to, all Insurance Requirements and
Legal Requirements (including all applicable Environmental Laws). Tenant shall
not at any time (i) cause, permit or suffer to occur any Environmental Violation
or (ii) permit any sublessee, assignee or other Person occupying the Leased
Premises under or through Tenant to cause, permit or suffer to occur any
Environmental Violation and, at the request of Landlord or Lender, Tenant shall
promptly remediate or undertake any other appropriate response action to correct
any existing Environmental Violation, however immaterial and (iii) without the
prior written consent of Landlord and Lender, permit any drilling or exploration
for or extraction, removal, or production of any minerals from the surface or
the subsurface of the Land, regardless of the depth thereof or the method of
mining or extraction thereof Any and all reports prepared for or by Landlord
with respect to the Leased Premises shall be for the sole benefit of Landlord
and Lender and no other Person shall have the right to rely on any such reports.

                  (b) Tenant, at its sole cost and expense, will at all times
promptly and faithfully abide by, discharge and perform all of the covenants,
conditions and agreements

                                      -14-
<PAGE>

contained in any Easement Agreement on the part of Landlord or the occupant of
the Leased Premises to be kept and performed thereunder. Tenant will not alter,
modify, amend or terminate any Easement Agreement, give any consent or approval
thereunder, or enter into any new Easement Agreement, in each case in any manner
that would have an adverse effect on the value of Landlord's residual interest
in the Leased Premises, without the prior written consent of Landlord which
consent shall not be unreasonably withheld or delayed. Landlord shall not alter,
modify, amend or terminate any Easement Agreement, give any consent or approval
thereunder, or enter into any new Easement Agreement without the prior written
consent of Tenant, which may be withheld in Tenant's sole discretion, unless
such modification or amendment to an existing Easement Agreement or a new
Easement Agreement is necessary in the reasonable opinion of Landlord for the
continued operation of the Leased Premises after the expiration of this Lease,
in which event Tenant's consent shall not be unreasonably withheld or delayed.

                  (c) Upon reasonable prior written notice from Landlord, Tenant
shall permit such persons as Landlord may designate ("Site Reviewers") to visit
the Leased Premises at reasonable times and, in each event, accompanied by a
representative designated by Tenant perform environmental site investigations
and assessments ("Site Assessments") on the Leased Premises (i) in connection,
with any sale, financing or refinancing of the Leased Premises (ii) within the
six month period prior to the expiration of the Term, (iii) if reasonably
required by Lender or the terms of any credit facility to which Landlord is
bound, (iv) if an Event of Default exists or (v) at any other time that, in the
opinion of Landlord or Lender, a reasonable basis exists to believe that an
Environmental Violation exists. Such Site Assessments may include both above and
below the ground testing for Environmental Violations and such other tests as
may be necessary, in the opinion of the Site Reviewers, to conduct the Site
Assessments. Tenant shall supply to the Site Reviewers Such historical and
operational information in its possession regarding the leased Premises as may
be reasonably requested by the Site Reviewers to facilitate the Site
Assessments and shall make available for meetings with the Site Reviewers
appropriate, personnel having knowledge of such matters. The cost of performing
and reporting any Site Assessments (i) reasonably required by the Lender that
makes the initial Loan or (ii) if an Environmental Violation is found to exist
shall be paid by Landlord. The cost of performing and reporting any other Site
Assessments shall be paid by Landlord. All such Site Assessments shall be
conducted in a manner that shall not interfere in any material respect with the
conduct by Tenant of its business in the Leased Premises

                  (d) If an Environmental Violation occurs or is found to exist
and, in Landlord's reasonable-judgment, the cost of remediation of or other
response action with respect to, the same is likely to exceed ten percent (10%)
of the Acquisition Cost for the Leased Premises. Tenant shall provide to
Landlord, within ten (10) Business Days after Landlord's request therefor,
adequate assurances that Tenant has the financial resources to effect such
remediation in accordance with applicable Environmental Laws.

                  (e) Notwithstanding any other provision of this Lease, If an
Environmental Violation occurs or is found to exist at the Leased Premises, and
the Term would otherwise terminate or expire, and Landlord after good-faith
efforts to relet the Leased Premises through a third-party broker at market rate
is unable to do so solely as a result of such

                                      -15-
<PAGE>

Environmental Violation, then, at the option of Landlord, the Term shall be
automatically extended beyond the date of termination "or expiration and this
Lease shall remain in full force and effect beyond such date until the earlier
to occur of (i) the completion of all remedial action in accordance with
applicable Environmental Laws or (ii) the date specified in a written notice
from Landlord to Tenant terminating this Lease.

                  (f) If Tenant fails to commence to correct any Environmental
Violation which occurs or is discovered to exist, within ninety (90) days
following such occurrence or discovery Landlord shall have the right (but no
obligation) to take any and all actions as Landlord shall deem necessary or
advisable in order to cure such Environmental Violation.

                  (g) Tenant shall notify Landlord immediately after becoming
aware of any Environmental Violation for alleged Environmental Violation) Or
noncomp with any of the covenants contained in this Paragraph 10 and shall
forward to Landlord immediately upon receipt thereof copies of all orders,
reports., notices, permits, applications or other communications relating to any
such violation or noncompliance.

                  (h) All future leases, subleases or concession agreements
relating to the Leased Premises entered into by Tenant shall contain covenants
of the other party not to at any time (i) cause any Environmental Violation to
occur are (ii) permit any Person occupying the Leased Premises through said
subtenant or concessionaire to cause any Environmental Violation to occur.

            11. Liens: Recording.

                  (a) Tenant shall not, directly or indirectly, create or permit
to be created or to remain and shall promptly discharge or remove any Lien, levy
or encumbrance on Landlord's fee interest in any of the Leased Premises or on
any Rent or any other sums payable by Tenant under this Lease, other than any
Mortgage or Assignment, the Permitted Encumbrances and any mortgage, lien,
encumbrance or other charge created by or resulting solely from any act or
omission of Landlord. NOTICE IS HEREBY GIVEN THAT LANDLORD SHALL NOT BE LIABLE
FOR ANY LABOUR, SERVICES OR MATERIALS FURNISHED OR TO BE FURNISHED TO TENANT OR
TO ANYONE HOLDING OR OCCUPYING ANY OF THE LEASED PREMISES THROUGH OR UNDER
TENANT, AND THAT NO CONSTRUCTION OR OTHER LIENS FOR ANY SUCH LABOUR, SERVICES OR
MATERIALS SHALL ATTACH TO OR AFFECT THE INTEREST OF LANDLORD IN AND TO ANY OF
THE LEASED PREMISES, LANDLORD MAY AT ANY TIME, AND PRIOR TO COMMENCEMENT OF ANY
WORK UPON THE LEASED PREMISES THAT COULD RESULT IN THE FILING OF ANY SUCH LIEN
TENANT SHALL PROMPTLY AND PROPERLY, POST ON THE LEASED PREMISES, A NOTICE OF
LANDLORD'S NON-LIABILITY.

                  (b) Landlord and Tenant shall execute, deliver and record,
file or register (collectively, "record") all such instruments as may be
required or permitted by any

                                      -16-
<PAGE>
present or future Law in order to evidence the respective interests of Landlord
and Tenant in the Leased Premises, and shall cause a notice, caveat or
memorandum of this Lease (or, if such a memorandum cannot be recorded, this
Lease), and any supplement hereto or thereto, to be registered in the land
titles office where the Leased Premises are located in order to protect the
validity and priority of this Lease.

      12. Maintenance and Repair.

            (a) Subject to Tenant's rights to make Alterations in accordance
with Paragraph 13, Tenant shall at all times maintain the Leased Premises and,
to the extent that Landlord or Tenant have any obligations, the Adjoining
Property in as good repair and condition as they are in on the date hereof, fit
to be used as a manufacturing and/or distribution facility (or as otherwise
permitted under the Section 4 of this Lease) in safe condition and in compliance
with applicable Laws and, in the case of the Equipment, in as good mechanical
condition as it was on the later of the date hereof or the date of its
installation, except in each instance for ordinary wear and tear. Tenant shall
promptly make all Alterations of every kind and nature, whether foreseen or
unforeseen, which may be required to comply with the foregoing requirements of
this Paragraph 12(a). Landlord shall not be required to make any Alteration,
whether foreseen or unforeseen, or to maintain any of the Leased Premises or
Adjoining Property in any way, and Tenant hereby expressly waives any right
which may be provided for in any Law now or hereafter in effect to make
Alterations at the expense of Landlord or to require Landlord to make
Alterations. Any Alteration made by Tenant pursuant to this Paragraph 12 shall
be made in conformity with the provisions of Paragraph 13.

            (b) If any Improvement hereafter constructed shall (i) encroach upon
any setback or any property, street or right-of-way adjoining the Leased
Premises, (ii) violate the provisions of any restrictive covenant affecting the
Leased Premises, (iii) hinder or obstruct any easement or right-of-way to which
the Leased Premises is subject or (iv) impair the rights of others in, to or
under any of the foregoing, Tenant shall, promptly after receiving notice from
an interested party, either (A) obtain from all necessary parties waivers or
settlements of all claims, liabilities and damages resulting from each such
encroachment, violation, hindrance, obstruction or impairment, whether the same
shall affect Landlord, Tenant or both, or (B) take such action as shall be
necessary to remove all such encroachments, hindrances or obstructions and to
end all such violations or impairments, including, if necessary, making
Alterations.

      13. Alterations and Improvements.

            (a) Tenant shall have the right, without having obtained the prior
written consent or Landlord and Lender, to (i) make non-structural Alterations
to the interior of the Improvements (including, without limitation,
construction, removal or relocation of partition walls, but excluding interior
stairways), without limitation as to amount so long as the primary use of the
Improvements is manufacturing and distribution and to install, remove and/or
relocate Tenant's Equipment, or (ii) make any other non-structural Alterations
or a series of related non-structural Alterations that, as to any such
Alterations or series of related Alterations, do not cost in excess of ten
percent (10%) of the Acquisition Cost of the Leased Premises, (iii) install

                                      -17-
<PAGE>

Equipment in the Improvements or accessions to the Equipment that, as to such
Equipment or accessions, do not cost in excess of len percent (10%) of the
Acquisition Cost of the Leased Premises so long as at the time of construction
or installation of any such Equipment, Alterations or expansion no Event of
Default exists and the value and utility of the Leased Premises is not
diminished thereby in any material respect. If Tenant desires to make any
Alterations not permitted above, the prior written approval of Landlord and
Lender shall be required, which shall not be unreasonably withheld or delayed.
Except as provided in this Paragraph 13(a) Tenant shall not construct upon the
Land any additional buildings without having first obtained the prior written
consent of Landlord and Lender, which shall not be unreasonably withheld or
delayed. Landlord shall have the right to require Tenant to remove and/or
restore any Alterations, other than Alterations (w) required by Law or by this
Lease (including Paragraph 12(a)), (x) permitted pursuant to clause (iv) above
or constituting additional buildings constructed upon the Land with the consent
of Landlord and Lender, or(y) with respect to which Landlord has agreed in
writing, as provided below, are not required to be removed or restored. Tenant
shall have the right, with respect to any Alteration that Tenant would otherwise
be required to remove or restore pursuant to the preceding sentence, to give
notice to Landlord describing such Alteration and requesting that Landlord
determine whether or not such Alteration will be required to be removed or
restored at the end of the Term. Within ten (10) Business Days after receipt of
Tenant's notice, Landlord shall give notice to Tenant informing Tenant whether
Landlord will require removal or restoration of such Alteration at the
expiration of the Term; provided, that Landlord shall act reasonably in
determining whether or not to require such restoration or removal.

            (b) If Tenant makes any Alterations pursuant to this Paragraph 13 or
as required by Paragraph 12 or 17, whether or not Landlord's consent is
required, then (i) the market value of the Leased Premises shall not be lessened
by any such Alterations in any material respect or its usefulness impaired in
any material respect, (ii) all such Alterations shall be performed by Tenant in
a good and workmanlike manner, (iii) all such Alterations shall be expeditiously
completed in compliance with all Legal Requirements, (iv) all such Alterations
shall comply with the Insurance Requirements, (v) if any such Alterations
involve the replacement of Equipment or parts thereto, all replacement Equipment
or parts shall be in good repair and condition and fit for its intended use and
shall have a value and useful life equal to or greater than the value and useful
life of the Equipment being replaced immediately prior to the occurrence of the
event which required its replacement (assuming such replaced Equipment was then
in the condition required by this Lease), (vi) Tenant shall promptly discharge
or remove all liens filed against any of the Leased Premises arising out of such
Alterations, (vii) Tenant shall procure and pay for all permits and licenses
required in connection with any such Alterations, (viii) all such Alterations
shall be the property of Landlord and shall be subject to this Lease, and Tenant
shall execute and deliver to Landlord any document reasonably requested by
Landlord evidencing the assignment to Landlord of all estate, right, title and
interest (other than the leasehold estate created hereby) of Tenant or any other
Person thereto or therein, and (ix) Tenant shall comply, to the extent requested
by Landlord or required by this Lease, with the provisions of Paragraphs 12(a)
and the applicable provisions of Paragraph 19(a), whether or not such
Alterations involve restoration of the Leased Premises.

                                      -18-
<PAGE>
      14. Permitted Contests. Notwithstanding any other provision of this Lease,
Tenant shall not be required to (a) pay any Imposition, (b) discharge or remove
any lien referred to in Paragraph 11 or 13, (c) take any action with respect to
any encroachment, violation, hindrance, obstruction or impairment referred to in
Paragraph 12(b), or (d) comply with any Law or Legal Requirement including
Environmental Laws (such non-compliance, with the terms hereof being hereinafter
referred to collectively as "Permitted Violations"), so long as at the time of
such contest no Event of Default exists and so long as Tenant shall contest, in
good faith and in accordance with all applicable Laws, the existence, amount or
validity thereof, the amount of the damages caused thereby, or the extent of its
or Landlord's liability therefor by appropriate proceedings which shall operate
during the pendency thereof to prevent or stay (i) the collection from, or other
realization upon the Leased Premises or the Rent as a result of, the Permitted
Violation so contested, (ii) the imminent sale, forfeiture or loss of any of the
Leased Premises or any Rent to satisfy or to pay any damages caused by any
Permitted Violation, (iii) any interference with the payment of any Rent, or
(iv) the cancellation of any insurance policy affecting the Leased Premises or a
statement by the carrier that coverage will be denied. Tenant shall provide
Landlord security which is satisfactory, in Landlord's reasonable judgment, to
assure that such Permitted Violation is corrected, including all Costs, interest
and penalties that may be incurred or become due in connection therewith. While
any proceedings which comply with the requirement of this Paragraph 14 are
pending and the required security is held by Landlord, Landlord shall not have
the right to correct any Permitted Violation thereby being contested unless
Landlord is required by law to correct such Permitted Violation and Tenant's
contest does not prevent or stay such requirement as to Landlord. Each such
contest shall be promptly and diligently prosecuted by Tenant to a final
conclusion, except that Tenant, so long as the conditions of this Paragraph 14
are at all times complied with, has the right to attempt to settle or compromise
such contest through negotiations Tenant shall pay any and all losses,
judgments, decrees and Costs in connection with any such contest and shall,
promptly after the final determination of such contest, fully pay and discharge
the amounts which shall be levied, assessed, charged or imposed or be determined
to be payable therein or in connection therewith, together with all penalties,
fines, interest and Costs thereof or in connection therewith, and perform all
acts the performance of which shall be ordered or decreed as a result thereof.
No such contest shall subject Landlord to the risk of any criminal liability or,
unless paid by Tenant, civil liability.

      15.Indemnification.

            (a) Tenant shall pay, protect, indemnify, defend, save and hold
harmless Landlord, Lender and all other Persons described in Paragraph 30 (each
an "Indemnitee") from and against any and all liabilities, losses, damages
(including punitive damages), penalties, Costs (including reasonable legal fees
and costs), causes of action, suits, claims, demands or judgments of any nature
whatsoever, howsoever caused, without regard to the form of action and whether
based on strict liability, negligence or any other theory of recovery at law or
in equity (but excluding Landlord Expenses and any matter caused by the gross
negligence or willful misconduct of the Indemnitee seeking indemnification or
an agent of such Indemnitee) arising from (i) any matter pertaining to the
acquisition (or the negotiations leading thereto) ownership, use, non-use,
occupancy, operation, condition, design, construction,

                                      -19-
<PAGE>

maintenance, repair or restoration of the Leased Premises or, to the extent that
Landlord or Tenant has any obligations with respect thereto, the Adjoining
Property, or any liability imputed to such party as the result of Landlord's
ownership of the Leased Premises, (ii) any casualty in any manner arising from
the Leased Premises or Adjoining Property, whether or not Indemnitee has or
should have knowledge or notice of any defect or condition causing or
contributing to said casualty, (iii) any violation by Tenant of any provision of
this Lease, any contract or agreement to which Tenant is a party, any Legal
Requirement or any Permitted Encumbrance or any encumbrance Tenant consented to
(other than the Mortgage or the Assignment) or (iv) any alleged, threatened or
actual Environmental Violation (unless caused by the Indemnitee seeking
indemnification or an agent of such Indemnitee, including (A) liability for
response costs and for costs of removal and remedial action incurred by the
Canadian Government, any provincial or local governmental unit or any other
Person, or damages from injury to or destruction or loss of natural resources,
including the reasonable costs of assessing such injury, destruction or loss,
incurred pursuant to law, (B) liability for costs and expenses of abatement,
correction or clean-up, fines, damages, response costs or penalties which arise
from the provisions of any of the other Environmental Laws and (C) liability for
personal injury or property damage arising under any statutory or common-law
tort theory, including damages assessed for the maintenance of a public or
private nuisance or for carrying on of a dangerous activity.

            (b) In case any action or proceeding is brought against any
indemnitee by reason of any such claim, (i) Tenant may, except in the event of a
conflict of interest or a dispute between Tenant and any such Indemnitee (a
"Conflict") or during the continuance of an Event of Default, retain its own
counsel and defend such action (it being understood that Landlord may employ
counsel of its choice to monitor the defense of any such action, the cost of
which shall be paid by Landlord except in the case of a Conflict) and (ii) such
Indemnitee shall notify Tenant to resist or defend such action or proceeding by
retaining counsel reasonably satisfactory to such Indemnitee, and such
indemnitee will cooperate and assist in the defense of such action or proceeding
if reasonably requested so to do by Tenant. In the event of a Conflict or during
the continuance of an Event of Default, Landlord shall have the right to select
counsel, and the cost of such counsel shall be paid by Tenant.

            (c) The obligations of Tenant under this Paragraph 15 shall survive
any termination, expiration or rejection in bankruptcy of this Lease with
respect to any matter that occurred or existed to such termination, expiration
or rejection.

      16. Insurance.

            (a) Tenant shall maintain the following insurance on or in
connection with the Leased Premises:

                  (i) Insurance against all risk of physical loss or damage to
the Improvements and Equipment as provided under "Special Causes of Loss" form
coverage, and including customarily excluded perils of hail, windstorm, flood
coverage, earthquake and, to the extent required by Lender, terrorism insurance
in amounts not less than the actual replacement cost of the Improvements and
Equipment; provided that, if Tenant's insurance company is unable

                                      -20-
<PAGE>
or unwilling to include any of all of such excluded perils, Tenant shall have
the option of purchasing coverage against such perils from another insurer on a
"Difference in Conditions" form or through a stand-alone policy. Such policies
shall contain Replacement Cost and Agreed Amount Endorsements and "Law and
Ordinance" coverage (at full replacement cost). Such Policies and endorsements
shall contain deductibles not more than $100,000 per occurrence.

                  (ii) Commercial General Liability Insurance (including but not
limited to Incidental Medical Malpractice and Host Liquor Liability) and
Business Automobile Liability Insurance (including Non-Owned and Hired
Automobile Liability) against claims for personal and bodily injury, death or
property damage occurring on, in or as a result of the use of the Leased
Premises, in an amount not less than $1,000,000 per occurrence and $15,000,000
U.S. Dollars excess liability on a claims occurrence basis, and all other
coverage extensions that are usual and customary for properties of this size and
type provided, however, that the Landlord shall have the right to require such
higher limits as may be reasonable and customary for properties of this size and
type.

                  (iii) Workers' compensation insurance covering all persons
employed by Tenant in connection with any work done on or about any of the
Leased Premises for which claims for death, disease or bodily injury may be
asserted against Landlord, Tenant or any of the Leased Premises or, in lieu of
such Workers' Compensation Insurance, a program of self-insurance complying
with the rules, regulations and requirements of the appropriate agency of the
Province.

                  (iv) Comprehensive Boiler and Machinery Insurance on any of
the Equipment or any other equipment on or in the Leased Premises, in an
amount not less than $6,500,000 per accident for damage to property. Either such
Boiler and Machinery policy or the All-Risk policy required in (i) above may
contain a deductible not to exceed $100,000 and shall include at least
$4,000,000 per incidence for Off-Premises Service Interruption, and at least
$150,000 per incidence for Expediting Expenses, Ammonia Contamination and
Hazardous Materials Clean-Up Expense.

                  (v) Business Income/Extra Expense Insurance at limits
sufficient to cover 100% of the period of indemnity not less than one year from
time of loss plus a six month extended period of indemnity. Such insurance shall
name Landlord as loss payee solely with respect to Rent payable to or for the
benefit of Landlord as its interest appears under this Lease.

                  (vi) During any period in which substantial Alterations at the
Leased Premises are being undertaken, builder's risk insurance covering the
total completed value including any "soft costs" with respect to the
Improvements being altered or repaired (on a completed value, non-reporting
basis), replacement cost of work performed and equipment, supplies and materials
furnished in connection with such construction or repair of Improvements or
Equipment, together with such "soft cost" endorsements and such other
endorsements as Landlord may reasonably require and general liability, worker's
compensation and automobile liability insurance with respect to the Improvements
being constructed, altered or repaired.

                                      -21-
<PAGE>

                  (vii) Such other insurance (or other terms with respect to any
insurance required pursuant to this Paragraph 16, including without limitation
amounts of coverage, deductibles, form of mortgagee clause) on or in connection
with any of the Leased Premises as Landlord or Lender may reasonably require,
which at the time is usual and commonly obtained in connection with properties
similar in type of building size, use and location to the Leased Premises.

            (b) The insurance required by Paragraph 16(a) shall be written by
companies which have a Best's rating of A:X or above and a claims paying ability
rating of A or better by S&P or equivalent rating agency approved by Landlord
and Lender and are admitted in, and approved to write insurance policies by, the
State Insurance Department for the State. Notwithstanding the foregoing,
Landlord and Lender shall, with respect to the insurance required pursuant to
Paragraph 16(a)(i), accept policies written by Factory Mutual Insurance Company
("F.M. Global") during any period while F.M. Global does not have an A or better
S&P claims paying ability rating so long as F.M. Global has a Best's rating of
A:X or above. The insurance policies (i) shall be for such terms as Landlord may
reasonably approve and (ii) shall be in amounts sufficient at all times to
satisfy any coinsurance requirements thereof. The insurance referred to in
Paragraphs 16(a)(i), 16(a)(iv) and 16(a)(vi) shall name Landlord as Owner and
Lender as loss payee, as its interest may appear, and Tenant as its interest may
appear. The insurance referred to in Paragraph 16(a)(ii) shall name Landlord and
Lender as additional insureds, and the insurance referred to in Paragraph
16(a)(v) shall name Landlord as insured and Lender and Landlord as loss payees,
as their respective interests may appear. If said insurance or any part thereof
shall expire, be withdrawn, become void, voidable, unreliable or unsafe for any
reason, including a breach of any condition thereof by Tenant or the failure or
impairment of the capital of any insurer, or if for any other reason whatsoever
said insurance shall become reasonably unsatisfactory to Landlord, Tenant shall
immediately obtain new or additional insurance reasonably satisfactory to
Landlord.

            (c) Each insurance policy referred to in clauses (i), (iv), (v) and
(vi) of Paragraph 16(a) shall contain standard non-contributory mortgagee
clauses in favor of and acceptable to Lender. Each policy required by any
provision of Paragraph 16(a), except clause (iii) thereof, shall provide that it
may not be cancelled, substantially modified or allowed to lapse on any renewal
date except after thirty (30) days' prior notice to Landlord and Lender. Each
such policy shall also provide that any loss otherwise payable thereunder shall
be payable notwithstanding (i) any act or omission of Landlord or Tenant which
might, absent such provision, result in a forfeiture of all or a part of such
insurance payment, (ii) the occupation or use of any of the Leased Premises for
purposes more hazardous than those permitted by the provisions of such policy,
(iii) any foreclosure or other action or proceeding taken by Lender pursuant to
any provision of the Mortgage, Note, Assignment or other document evidencing or
securing the Loan upon the happening of an event of default therein or (iv) any
change in title to or ownership of any of the Leased Premises.

            (d) Tenant shall pay as they become due all premiums for the
insurance required by Paragraph 16(a), shall renew or replace each policy and
deliver to Landlord evidence of the payment of the full premium therefor or
installment then due at least

                                      -22-
<PAGE>

thirty (30) days prior to the expiration date of such policy, and shall promptly
deliver to Landlord all original certificates of insurance or, if required by
Lender, original or certified policies.

            (e) Anything in this Paragraph 16 to the contrary notwithstanding,
any insurance which Tenant is required to obtain pursuant to Paragraph 16(a) may
be carried under a "blanket" or umbrella policy or policies covering other
properties or liabilities of Tenant, provided (that such "blanket" or Umbrella
policy or policies otherwise comply with the provisions of this Paragraph 16 and
provided further that Tenant shall provide to Landlord a Statement of Values
which shall be reviewed annually and amended as necessary based on Replacement
Cost Valuations. The original or a certified copy of each such "blanket" or
umbrella policy shall promptly be delivered to Landlord.

            (f) Tenant shall promptly comply with and conform to (i) all
provisions of each insurance policy required by this Paragraph 16 and (ii) all
requirements of the insurers thereunder applicable to Landlord, Tenant or any of
the Leased Premises or to the use, manner of use, occupancy, possession,
operation, maintenance, alteration or repair of any of the Leased Premises, even
if such compliance necessitates Alterations or results in interference with the
use or enjoyment of any or the Leased Premises.

            (g) Tenant shall not carry separate insurance concurrent in form or
contributing in the event of a Casualty with that required in this Paragraph 16
unless (i) Landlord and Lender are included therein as named insureds, with loss
payable as provided herein, and (ii) such separate insurance complies with the
other provisions of this Paragraph 16. Tenant shall immediately notify Landlord
of such separate insurance and shall deliver to Landlord the original policies
or certified copies thereof.

            (h) All policies shall contain effective waivers by the carrier
against all claims for insurance premiums against Landlord and shall contain
full waivers of subrogation against the Landlord.

            (i) All proceeds of any insurance required under Paragraph 16(a)
shall be payable as follows:

                  (i) Proceeds payable under clauses (ii), (iii) and (iv) of
Paragraph 16(a) and proceeds attributable to the general liability coverage of
Builder's Risk insurance under clause (vi) of Paragraph 16(a) shall be payable
to the person entitled to receive such proceeds.

                  (ii) Proceeds of insurance required under clause (i) of
Paragraph 16(a) and proceeds attributable to Builder's Risk insurance (other
than its general liability coverage provisions) under clause (vi) of Paragraph
16(a) shall be payable to Landlord or Lender and applied as set forth in
Paragraph 17 or, if applicable, Paragraph l8. Tenant shall apply the Net Award
to restoration of the Leased Premises in accordance with the applicable
provisions of this Lease unless a Termination Event shall have occurred and
Tenant has given a Termination Notice.

                                      -23-
<PAGE>

      17. Casualty and Condemnation.

            (a) If any Casualty to the Leased Premises occurs the insurance
proceeds of which are reasonably likely to be in excess of One Hundred Fifty
Thousand Dollars ($150,000), Tenant shall give Landlord and Lender immediate
notice thereof. So long as no Event of Default then exists Tenant is hereby
authorized to adjust, collect and compromise all claims under any of the
insurance policies required by Paragraph 16(a) (except public liability
insurance claims payable to a Person other than Tenant, Landlord or Lender) and
to execute and deliver on behalf of Landlord all necessary proofs of loss,
receipts, vouchers and releases required by the insurers and Landlord shall have
the right to join with Tenant therein. Any final adjustment, settlement or
compromise of any such claim in excess of $325,000 shall be subject to the prior
written approval of Landlord, which approval shall not be unreasonably withheld
or delayed, and Landlord shall have the right to require Tenant to prosecute or
contest any such claim, adjustment, settlement or compromise. If an Event of
Default then exists, (i) Tenant shall not be entitled to adjust, collect or
compromise any such claim or to participate with Landlord in any adjustment,
collection and compromise of the Net Award payable in connection with a
Casualty, (ii) Tenant agrees to sign, upon the request of Landlord, all such
proofs of loss, receipts, vouchers and releases, (iii) each insurer is hereby
authorized and directed to make payment under said policies, including return
of unearned premiums, directly to Landlord or, if required by the Mortgage, to
Lender instead of to Landlord and Tenant jointly, and Tenant hereby appoints
each of Landlord and Lender as Tenant's attorneys-in-fact to endorse any draft
therefor. The rights of Landlord under this Paragraph 17(a) shall be extended to
Lender if and to the extent that any Mortgage so provides.

            (b) Tenant, immediately upon receiving a Condemnation Notice, shall
notify Landlord and Lender thereof. So long as no Event of Default exists,
Tenant is authorized to collect, settle and compromise the amount of any Net
Award and Landlord shall have the right to join with Tenant herein. If an Event
of Default exists, Landlord shall be authorized to collect, Settle and
compromise the amount of any Net Award and Tenant shall not be entitled to
participate with Landlord in any Condemnation proceeding or negotiations under
threat thereof or to contest the Condemnation or the amount of the Net Award
therefor. No agreement with any expropriating body or condemnor in settlement or
under threat of any Condemnation shall be made by Landlord or Tenant without the
written consent of the other party, not to be unreasonably withheld or delayed.
Upon receipt, any Net Award shall be distributed first, to Landlord, up to an
amount equal to the sum of the Acquisition Cost and the applicable Prepayment
Premium which Landlord will be required to pay in prepaying any Loan with the
proceeds of the Net Award, then to Tenant up to an amount equal to the value of
Tenant's leasehold estate hereunder and the value of any expansion or addition
or any additional buildings constructed by Tenant during the Term, and, any
balance of such Net Award to Landlord. Moreover, nothing in this Lease (i) shall
impair Tenant's right to any award or payment on account of Tenant's trade
fixtures, equipment or other tangible property which is not part of the
Equipment, moving expenses or loss of business, if available, to the extent that
and so long as (A) Tenant shall have the right to make, and does make, a
separate claim therefor against the condemnor and (B) such claim does not in
any way reduce the amount of the Net Award or, if Tenant gives a Termination
Notice to Landlord, affect the obligations of Tenant under Paragraph

                                      -24-
<PAGE>

18 hereof to pay the Termination Amount. The rights of Landlord under this
Paragraph 17(b) shall also be extended to Lender if and to the extent that any
Mortgage so provides.

            (c) If any Casually (whether or not insured against) or Partial
Condemnation shall occur, this Lease shall continue, notwithstanding such event,
and there shall be no abatement or reduction of any Monetary Obligations, except
as provided in Paragraph 19(c). Promptly after such Casualty or Partial
Condemnation, Tenant, as required in Paragraph 12(a), shall commence and
diligently continue to restore the Leased Premises as nearly as possible to
their value, condition and character immediately prior to such event (assuming
the Leased Premises to have been in condition required by this Lease). So long
as no Event of Default exists, any Net Award up to and including $325,000 shall
be paid by Landlord to Tenant and Tenant shall restore the Leased Premises in
accordance with the requirements of Paragraph 13(b) of this Lease. Any Net Award
in excess of $325,000 shall (unless such Condemnation resulting in the Net Award
is a Termination Event) be made available by Landlord (or Lender, if required by
the terms of any Mortgage) to Tenant for the restoration of any of the Leased
Premises pursuant to and in accordance with the provisions of Paragraph 19
hereof. If any Condemnation which is not a Partial Condemnation shall occur,
Tenant shall comply with the terms and conditions of Paragraph 18.

      18. Termination Events.

            (a) If (i) the entire Leased Premises shall be taken by a
Condemnation or (ii) any substantial portion of the Leased Premises shall be
taken by a Condemnation and, in the case of clause (ii), Tenant certifies and
covenants to Landlord that it will be unable to continue to conduct its business
at the Leased Premises and that it will forever abandon operations at the Leased
Premises (each of the events described in the above clauses (i) and (ii) shall
hereinafter be referred to as a "Termination Event"), then Tenant shall have the
option, within sixty (60) days after Tenant receives a Condemnation Notice to
give to Landlord written notice in the form described in Paragraph 18(b) of the
Tenant's election to terminate this Lease (a "Termination Notice"). If Tenant
elects under clause (ii) above not to give Landlord a Termination Notice, (then
Tenant shall rebuild or repair the Leased Premises in accordance with Paragraphs
17 and 19.

            (b) A Termination Notice shall contain (i) notice of Tenant's
intention to terminate this Lease as to the Affected Premises on the first Basic
Rent Payment Date which occurs at least sixty (60) days after the date of the
Termination Notice (the "Termination Date") (ii) if the Termination Event is an
event described in Paragraph 18(a)(ii), the certification and covenants
described (therein and a certified resolution of the Board of Directors of
Tenant authorizing the same.

            (c) This Lease shall terminate on the Termination Date; provided
that, if Tenant has not satisfied all Monetary Obligations and all other
obligations and liabilities under this Lease which have arisen on or prior to
the Termination Date (collectively, "Remaining Obligations") on the Termination
Date, then Landlord may, at its option, extend the date on which this Lease may
terminate to a dale which is no later than the first Basic Rent Payment

                                      -25-
<PAGE>

Date after the Termination Date on which Tenant has satisfied all Remaining
Obligations. Upon such termination (i) all obligations of Tenant hereunder shall
terminate except for any Surviving Obligations, (ii) Tenant shall immediately
vacate and shall have no further right, title or interest in or to any of the
Leased Premises and (iii) the portion of any Net Award payable to Landlord in
the event of a Condemnation shall be retained by Landlord. Notwithstanding
anything to the contrary hereinabove contained, if, on the Termination Date,
Landlord shall not have received the full amount of the Net Award payable to
Landlord by reason of the applicable Termination Event, then the date on which
this Lease is to terminate with respect to the Affected Premises shall be
automatically extended to the first Basic Rent Payment Date after the receipt by
Landlord of the full amount of the Net Award payable to Landlord provided that,
if Tenant has not satisfied all Remaining Obligations on such date, then
Landlord may, at its option, extend the date on which this Lease may terminate
to a date which is no later than the first Basic Rent Payment Date after such
date on which Tenant has satisfied all such Remaining Obligations.

      19. Restoration.

            (a) So long as no Event of Default has occurred and is continuing
any Net Award up to the amount of Three Hundred Twenty-five Thousand Dollars
$325,000 shall be paid by Landlord to Tenant and applied by Tenant to
restoration of the Leased Premises in accordance with this Lease. Landlord (or
Lender if required by any Mortgage) shall hold Net Award in excess of Three
Hundred Twenty-five Thousand Dollars ($325,000) in a fund (the "Restoration
Fund") and disburse amounts from the Restoration Fund only in accordance with
the following conditions:

                  (i) prior to commencement of restoration, (A) the architects,
contracts, contractors, plans and specifications for the restoration shall have
been reasonably approved by Landlord, and (B) Landlord and Lender shall be
provided with construction lien insurance (if available) and reasonably
acceptable performance and payment bonds which insure satisfactory completion of
and payment for the restoration, are in an amount and form and have a surety
acceptable to Landlord, and name Landlord and Lender as additional dual
obligees;

                  (ii) at the time of any disbursement, no Event of Default
shall exist and no construction or materialmen's liens shall have been filed
against any of the Leased Premises and remain undischarged unless the same are
being contested pursuant to the terms of Paragraph 14 hereof;

                  (iii) disbursements shall be made Form time to time in an
amount not exceeding the amount due on the work completed up until the time of
such disbursement together with any soft costs related thereto, upon receipt of
(A) satisfactory evidence, including architects' certificates, of the stage of
completion, the estimated total cost of completion and performance of the work
to date in a good and workmanlike manner in accordance with the contracts, plans
and specifications, (B) waivers of liens, (C) contractors' and subcontractors'
sworn statements as to completed work and the cost thereof for which payment is
requested, (D) a satisfactory bringdown of title insurance and (E) other
evidence of cost and payment so that Landlord can verify that the amounts
disbursed from time to time are

                                      -26-
<PAGE>

represented by work that is completed, in place and free and clear of
construction and materialmen's lien claims and related soft costs;

                  (iv) each request for disbursement shall be accompanied by a
certificate of Tenant, signed by a duly authorized officer of Tenant, describing
the work for which payment is requested, stating the cost incurred in connection
therewith, stating that Tenant has not previously received payment for such work
and, upon completion of the work, also stating that the work has been fully
completed and complies with the applicable requirements of this lease;

                  (v) Landlord may retain ten percent (10%) of the Restoration
Fund, to be dealt with in accordance with applicable construction lien
legislation which shall be released on a contract-by-contract basis as the
restoration is completed;

                  (vi) if the Restoration fund is held by Landlord, the
Restoration Fund shall not be commingled with Landlord's other funds and shall
be invested in an interest-bearing investment permitted pursuant to the Loan,
and the interest therefrom shall became part of the Restoration Fund; and

                  (vii) such other reasonable conditions as Landlord or Lender
may impose.

            (b) Prior to commencement of restoration and at any time during
restoration, if the estimated cost of completing the restoration work free and
clear of all liens, as reasonably determined by Landlord, exceeds the amount of
the Net Award available for such restoration, the amount of such excess shall,
upon demand by Landlord, be paid by Tenant to Landlord to be added to the
Restoration Fund. Any sum so added by Tenant which remains in the Restoration
Fund upon completion of restoration shall be refunded to Tenant. For purposes of
determining the source of funds with respect to the disposition of funds
remaining after the completion of restoration, the Net Award shall be deemed to
be disbursed prior to any amount added by Tenant.

            (c) If any sum remains in the Restoration Fund after completion of
the restoration and any refund to Tenant pursuant to Paragraph 19(b), such sum
shall be retained by Landlord or, if required by a Note or Mortgage, paid by
Landlord to a Lender.

      20. Intentionally Omitted.

      21. Assignment and Subletting; Waiver of Landlord's Liens.

            (a) (i) Tenant shall have the right, upon thirty (30) days prior
written notice to Landlord and Lender, with no consent of Landlord or Lender
being required or necessary ("Preapproved Assignment") to assign this Lease by
operation of law or otherwise to any Person ("Preapproved Assignee") that (A)
immediately following such assignment and having given effect thereto will have
a publicly traded unsecured senior debt rating of "Ba1" or better from Moody's
or a rating of "BB+" or better from S&P (and in the event both of such

                                      -27-
<PAGE>

rating agencies cease to furnish such ratings, then a comparable rating by any
rating agency reasonably acceptable to Landlord and Lender) or (B) is and shall
continue to be for the balance of the Term to be a wholly-owned subsidiary of
any Tenant.

                  (ii) If Tenant desires to assign this Lease, whether by
operation of law or otherwise, to a Person ("Non-Preapproved Assignee") who
would not be a Preapproved Assignee ("Non-Preapproved Assignment") then Tenant
shall, not less than thirty (30) days prior to the date on which it desires to
make a Non-Preapproved Assignment submit to Landlord and Lender financial and
background information and other information reasonably required by Landlord and
Lender with respect to the Non-Preapproved Assignee (collectively, the "Review
Criteria"). Landlord and Lender shall review such information and shall approve
or disapprove the Non-Preapproved Assignee, which approval shall not be
unreasonably withheld or delayed, no later than the tenth (10th) Business Day
fallowing receipt of all such information, and Landlord and Lander shall be
deemed to have acted reasonably in granting or withholding consent if such grant
or disapproval is based on their review of the Review Criteria applying prudent
business judgment, taking into account the value of the Leased Premises and the
creditworthiness of Tenant and the proposed assignee, in both cases on a
proforma basis after such assignment and having given effect thereto. In the
event that Landlord and/or Lender shall have not responded to Tenant's request
for approval within such ten (10) Business Day period, Tenant may deliver to
Landlord a second written request for approval and Landlord will be deemed to
have consented do such assignment if it does not notify Tenant that it is
withholding its consent within ten (10) Business Days after its receipt of the
second written request.

            (b) Tenant shall have the right, upon thirty (30) days prior written
notice to Landlord and Lender, and with no consent or approval of Landlord or
Lender being required or necessary, to enter into a sublease than demises one
hundred percent (100%) of the gross space in the Improvements with any (i)
Affiliate, or (ii) Person that purchases Tenant's business (each, a "Preapproved
Sublet"). Other than pursuant to Preapproved Sublets, at no time during the Term
shall any Related Premises be subject to subleases without the prior written
consent of Landlord and, to the extent required under any Mortgage or other
documents with respect to any Loan, Lender, which consent shall not be
unreasonably withheld or delayed, and which shall be granted or withheld based
on a review of the Review Criteria as they relate to the proposed sublessee.
Landlord and Lender shall be deemed to have acted reasonably in granting or
withholding consent if such grant or disapproval is based on their review of the
Review Criteria, applying prudent business judgment, taking into account the
value of the Leased Premises and the creditworthiness of Tenant and the proposed
sublessee.

            (c) If Tenant assigns all its rights and interest under this Lease,
the assignee under such assignment shall expressly assume all the obligations of
Tenant hereunder, actual or contingent including obligations of Tenant which may
have arisen on or prior to the date of such assignment, by a written instrument
delivered to Landlord at the time of such assignment Each sublease of any of the
Leased Premises shall be subject and subordinate to the provisions of this
Lease. No assignment or sublease shall affect or reduce any of the obligations
of Tenant hereunder, and all such obligations, shall continue in full force and
effect as obligations of a principal and not as obligations of a guarantor, as
if no assignment or sublease had been
                                      -28-
<PAGE>

made. No assignment or sublease shall impose any additional obligations on
Landlord under this Lease.

            (d) Notwithstanding any provision in this Paragraph 21 or elsewhere
in this Lease to the contrary, including any right or option Tenant may have to
assign this Lease or sublease all or any portion of the Leased Premises without
Landlord's consent, Tenant shall, upon the request of Landlord, provide and
cause such assignee or sublessee to provide, such information (including,
without limitation, any certification) as to any proposed assignee or sublessee
and its principals as may be required for Landlord and Tenant to comply with
regulations administered by the Office of Foreign Asset Control ("OFAC") of the
Department of the Treasury, codified at 31 C.F.R. Part 500 (including those
named on OFAC's Specially Designated and Blocked Persons list) or under any
statute, executive order (including the September 24, 2001. Executive Order
Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten
to Commit, or Support Terrorism), or other governmental action regarding persons
or entities with whom U.S. persons or entities are restricted from doing
business.

            (e) With respect to any Preapproved Assignment or Preapproved
Sublet, Tenant shall provide to Landlord information reasonably required by
Landlord to establish that any proposed Preapproved Assignment or Preapproved
Sublet satisfies the criteria set forth above.

            (f) Tenant shall, within ten (10) Business Days after the execution
and delivery of any assignment or sublease, deliver a duplicate original copy
thereof to Landlord which, in the event of an assignment, shall be together with
a transfer of caveat, in registerable form, with respect thereto.

            (g) As security for performance of its obligations under this Lease,
Tenant hereby grants, conveys and assigns to Landlord all right, title and
interest of Tenant in and to all subleases now in existence or hereafter entered
into for any or all of the Leased Premises, any and all extensions,
modifications and renewals thereof and all rents, issues and profits therefrom.
Landlord hereby grants to Tenant a license to collect and enjoy all rents and
other sums of money payable under any sublease of any of the Leased Premises,
provided, however, that Landlord shall have the absolute right at any time upon
notice to Tenant and any subtenants to revoke said license and to collect such
rents and sums of money and to retain the same. Tenant shall apply the same to
amounts then due to Landlord hereunder, with any balance paid to Tenant. Tenant
shall not accept any rents more than thirty (30) days in advance of the accrual
thereof.

            (h) Landlord hereby waives (i) any right to distrain trade fixtures,
inventory and other personal property of Tenant and (ii) any Landlord's lien or
similar lien upon Tenant's Equipment, inventory and any other personal property
of Tenant regardless of whether such lien is created by statute or otherwise. At
the request of Tenant, Landlord shall execute a waiver of any Landlord's or
similar lien for the benefit of any holder of a security interest in or lessor
of any of Tenant's Equipment, inventory or any other personal property of Tenant
and

                                      -29-
<PAGE>

shall agree in writing to grant reasonable access to such holder for the purpose
of removing any such property, including without limitation, Tenant's Equipment.
Landlord agrees to acknowledge (in a written form reasonably satisfactory to
Landlord) to such persons and entities at such times and for such purposes as
Tenant may reasonably request that Tenant's Equipment owned by Tenant are
Tenant's property and not part of the Leased Premises (regardless of whether or
to what extent Tenant's Equipment and/or other personal property are affixed to
the Leased Premises) or otherwise subject to the terms of this Lease.

            (i) Landlord may sell or transfer the Leased Premises at any time
without Tenant's consent to any third party (each a "Third Party Purchaser") In
the event of any such transfer, Tenant shall attorn to any Third Party Purchaser
as Landlord so long as such Third Party Purchaser and Landlord notify Tenant in
writing of such transfer and the Third Party Purchaser expressly assumes
Landlord's obligations under this Lease. At the request of Landlord, Tenant will
execute such documents confirming the agreement referred to above and such other
agreements as Landlord may reasonably request, provided that such agreements do
not increase the liabilities and obligations of Tenant hereunder. The Landlord
shall be released from all obligation pursuant to this Lease upon delivery of
the transfer and Third Party Purchaser assumption of the Landlord's obligations
under this Lease.

      22. Events of Default.

            (a) The occurrence of any one or more of the following (after
expiration of any applicable cure period as provided in Paragraph 22(b)) shall,
at the sole option of Landlord, constitute an "Event of Default" under this
Lease:

                  (i) a failure by Tenant to make any payment of any Monetary
Obligation, regardless of the reason for such failure;

                  (ii) a failure by Tenant duly to perform and observe, or a
violation or breach of, any other provision hereof not otherwise specifically
mentioned in this Paragraph 22(a);

                  (iii) any representation or warranty made by Tenant herein or
in any certificate, demand or request made pursuant hereto proves to be
incorrect, now or hereafter, in any material respect;

                  (iv) a default beyond any applicable cure period or at
maturity by Tenant or any Guarantor in any payment of principal or interest on
any obligations for borrowed money having an original principal balance of
$5,000,000 U.S. Dollars or more in the aggregate, or in the performance of any
other provision contained in any instrument under which any such obligation is
created or secured (including the breach of any covenant thereunder), (x) if
such payment is a payment at maturity or a final payment unless the lender shall
have extended such maturity date in writing, or (y) if an effect of such default
is to cause such obligation to be accelerated prior to its stated maturity;

                                      -30-
<PAGE>

                  (v) (1) a final, non-appealable, uninsured judgment or
judgments for the payment of money in excess of $30,000,000 U.S. Dollars in the
aggregate shall be rendered against any Tenant or any Guarantor and the same
shall remain undischarged for a period of sixty (60) consecutive days;

                      (2) Tenant or any Guarantor shall default beyond any
applicable cure period in the payment of rent under or in the performance of any
other material provision of, any other lease or leases that have, in the
aggregate, rental obligations over the terms thereof of $3,000,000 or more.

                  (vi) any Tenant or any Guarantor shall (A) voluntarily be
adjudicated a bankrupt or insolvent, (B) seek or consent to the appointment of a
receiver or trustee for itself or for the Leased Premises, (C) file a petition
seeking relief under the bankruptcy or other similar laws of Canada or of the
United States, any province or state or any jurisdiction, (D) make a general
assignment for the benefit of creditors, or (E) be unable to pay its debts as
they mature;

                  (vii) a court shall enter an order, judgment or decree
appointing, without the consent of Tenant, a receiver or trustee for it or for
any of the Leased Premises or approving a petition filed against Tenant or any
Guarantor which seeks relief under the bankruptcy or other similar laws of
Canada or the United States, any province or state or any jurisdiction, and such
order, judgment or decree shall remain undischarged or unstayed ninety (90) days
after it is entered;

                  (viii) the Leased Premises shall have been vacated for more
than three hundred sixty-five (365) consecutive days;

                  (ix) (A) Tenant or any Guarantor shall be liquidated or (B)
Tenant or any Guarantor shall be dissolved or shall begin proceedings towards
its liquidation or dissolution;

                  (x) the estate or interest of Tenant in any of the Leased
Premises shall be levied upon or attached in any proceeding and such estate or
interest is about to be sold or transferred or such process shall not be
vacated or discharged within ninety (90) days after it is made;

                  (xi) a failure by Tenant to perform or observe, or a violation
or breach of, or a misrepresentation by Tenant under, any provision of any
Assignment to which Tenant is a party or any other document between Tenant and
Lender, if such failure, violation, breach or misrepresentation gives rise to a
default beyond any applicable cure period with respect to any Loan; provided
that Landlord has promptly given Tenant a copy of any notice Landlord shall have
received regarding such default;

                  (xii) Tenant shall sell or transfer or enter into an agreement
to sell or transfer all or more than 75% of the fair market value of its assets
unless such Tenant's leasehold interest in this Lease is sold or transferred as
part of such transaction and the buyer or

                                      -31-
<PAGE>

transferee assumes all of the obligations of such Tenant under the terms of
Paragraph 21(c) of the Lease;

                  (xiii) an Event of Default (as defined in the Guarantee)
beyond any applicable cure period shall occur under the Guarantee;

                  (xiv) Tenant shall fail to comply with the provisions of
Paragraph 25 or Paragraph 32 of this Lease; or

                  (xv) Tenant's failure to timely comply with any of Tenant's
Post Closing Obligations and such failure continues for ten (10) Business Days
after written notice from Landlord.

            (b) No notice or cure period shall be required in any one or more of
the following events: the occurrence of an Event of Default under clause (iv),
(v), (vi), (vii), (viii), (ix), (X), (xi), (xii), (xiii) or (XV) of Paragraph
22(a). If the default consists of the failure to pay Basic Rent, the applicable
cure period shall be five (5) Business Days from the date on which notice of
such default is given, provided, that Landlord shall not be obligated to give
notice of any such default more than one time during any Lease Year, provided,
further that even where Landlord is not required to give notice of any such
default by operation of the immediately preceding proviso. Tenant nevertheless
shall be entitled to a grace period of five (5) Business Days. If the default
consists of the failure to pay any other Monetary Obligation or a default under
clause (xiv) of Paragraph 22(a) the applicable cure period shall he five (5)
Business Days after notice from Landlord. If the default consists of a default
under clause (ii) or clause (iii) of Paragraph 22(a) (and provided that any
default under Paragraph 22(a)(iii) is reasonably susceptible of cure), the
applicable cure period shall be thirty (30) days from the date on which notice
is given or, if the default cannot be cured within such thirty (30) day period
and delay in the exercise of a remedy would not (in Landlord's reasonable
judgment) cause any material adverse harm to Landlord or any of the Leased
Premises, the cure period shall be extended for the period required to cure the
default (but such cure period, including any extension, shall not in the
aggregate exceed ninety (90) days), provided that Tenant shall commence to cure
the default within the said thirty-day period and shall actively, diligently and
in good faith proceed with and continue the curing of the default until it shall
be fully cured.

      23. Remedies and Damages Upon Default.

            (a) If an Event of Default shall have occurred and is continuing,
Landlord shall have the right, at its sole option and to the extent permitted by
applicable Law, to exercise its remedies and to collect damages from Tenant in
accordance with this Paragraph 23, subject in all events to applicable Law,
without demand upon or notice to Tenant except as otherwise provided in
Paragraph 22(b) and this Paragraph 23.

                  (i) Landlord may give Tenant notice of Landlord's intention to
terminate this Lease on a date specified in such notice. Upon such date, this
Lease, the estate hereby granted and all rights of Tenant hereunder shall
expire and terminate. Upon such

                                      -32-
<PAGE>

termination, Tenant shall immediately surrender and deliver possession of the
Leased Premises to Landlord in accordance with Paragraph 26. If Tenant does not
so surrender and deliver possession of the Leased Premises, Landlord may
re-enter and repossess the Leased Premises, by means of legal process, summary
proceedings, ejectment or any other lawful means or procedure. Upon or at any
time after taking possession of the Leased Premises, Landlord may, by peaceable
means or legal process, remove any Persons or property therefrom. Landlord shall
be under no liability for or by reason of any such entry, repossession or
removal. Notwithstanding such entry or repossession, Landlord may (A) exercise
the remedy set forth in and collect the damages permitted by Paragraph
23(a)(iii) or (B) collect the damages set forth in Paragraph 23(b)(i) or
23(b)(ii).

                  (ii) After repossession of the Leased Premises pursuant to
clause (i) above, Landlord shall have the right to relet any of the Leased
Premises to such tenant or tenants, for such term or terms, for such rent, on
such conditions and for such uses as Landlord in its sole discretion may
determine, and collect and receive any rents payable by reason of such
reletting. Landlord may make such Alterations in connection with such reletting
as it may deem advisable in its sole discretion. Notwithstanding any such
reletting. Landlord may collect the damages set forth in Paragraph 23(b)(ii).

                  (iii) Landlord may declare by notice to Tenant the entire
Basic Rent (in the amount of Basic Rent then in effect) for the remainder of the
then current Term to be immediately due and payable. Tenant shall immediately
pay to Landlord all such Basic Rent discounted to its Present Value, all accrued
Rent then due and unpaid, all other Monetary Obligations which are then due and
unpaid and all Monetary Obligations which arise or become due by reason of such
Event of Default (including any Costs of Landlord). Upon receipt by Landlord of
all such accelerated Basic Rent and Monetary Obligations, this Lease shall
remain in full force and effect and Tenant shall have the right to possession of
the Leased Premises from the date of such receipt by Landlord to the end of the
Term, and subject to all the provisions of this Lease, including the obligation
to pay all increases in Basic Rent and all Monetary Obligations that
subsequently become due, except that (A) no Basic Rent which has been prepaid
hereunder shall be due thereafter during the said Term and (B) Tenant shall
have no option to extend or renew the Term.

                  (iv) In addition to any and all other rights available to the
Landlord, the Landlord may upon notice to Tenant declare the full amount of the
current quarterly installment of Basic Rent and of all Additional Rent for the
current quarter (all of which shall be deemed to be accruing on a day-to-day
basis) immediately due and payable as accelerated Rent.

            (b) The following constitute damages to which Landlord shall be
entitled if Landlord exercises its remedies under Paragraph 23(a)(i) or
23(a)(ii):

                  (i) If Landlord exercises its remedy under Paragraph 23(a)(i)
but not its remedy under Paragraph 23(a)(ii) (or attempts to exercise such
remedy and is unsuccessful in reletting the Leased Premises) then, upon written
demand from

                                      -33-
<PAGE>

Landlord, Tenant shall pay to Landlord, as liquidated and agreed final damages
for Tenant's default and in lieu of all current damages beyond the date of such
demand (it being agreed that it would be impracticable or extremely difficult to
fix the actual damages), an amount equal to the Present Value of the excess, if
any, of (A) all Basic Rent from the date of such demand to the date on which the
Term is scheduled to expire hereunder in the absence of any earlier termination,
re-entry or repossession Over (B) the then fair market rental value of the
Leased Premises for the same period. Tenant shall also pay to Landlord all of
Landlord's Costs in connection with the repossession of the Leased Premises and
any attempted reletting thereof, including all brokerage commissions, legal
expenses attorneys' fees, employees' expenses, costs of Alterations and expenses
and preparation for reletting.

                    (ii) If Landlord exercises its remedy under Paragraph
23(a)(i) or its remedies under Paragraph 23(a)(i) and 23(a)(ii), then Tenant
shall, until the end of what would have been the Term in the absence of the
termination of the Lease, and whether or not any of the Leased Premises shall
have been relet, be liable, to Landlord for, and shall pay to Landlord, as
liquidated and agreed current damages all Monetary Obligations which would be
payable under this Lease by Tenant in the absence of such termination less the
net proceeds, if any, of any reletting pursuant to Paragraph 23(a)(ii), after
deducting from Such proceeds all of Landlord's Costs (including the items listed
in the lust sentence of Paragraph 23(b)(i) hereof) incurred in connection with
such repossessing and reletting; provided, that if Landlord has not relet the
leased Premises, such Costs of Landlord shall be considered to be Monetary
Obligations payable by Tenant. Tenant shall be and remain liable for all sums
aforesaid, and Landlord may recover such damages from Tenant and institute and
maintain successive actions or legal proceedings against Tenant for the recovery
of such damages. Nothing herein contained shall be deemed to require Landlord to
wait to begin such action or other legal proceedings until the date when the
Term would have expired by its own terms had there been no such Event of
Default.

            (c) Notwithstanding anything to the contrary herein contained, in
lieu of or in addition to any of the foregoing remedies and damages, Landlord
may exercise any remedies and collect any damages available to it at law or in
equity; provided, however, if a Limited Remedy Default exists, the aggregate
maximum amount Tenant shall be required to pay to Landlord as a result of such
Limited Remedy Default from and after the date of the occurrence of such Limited
Remedy Default (the "Occurrence Date") shall be limited to the sum of (i) the
present value as of the Occurrence Date, discounted at the annual rate of ten
and one-half percent (10.5%) (taking into account that Basic Rent payments are
required to be made quarterly), of all Basic Rent reserved hereunder for the
unexpired portion of the Term after the Occurrence Date as if this Lease had not
expired or been terminated, (ii) any amounts of Additional Rent which are due
and payable or have accrued under this Lease through the Occurrence Date, and
(iii) any amounts of Additional Rent which are due and payable or have accrued
under this Lease after the Occurrence Date while the Tenant remains in
possession of the Leased Premises or any Related Premises after any Limited
Remedy Default that relates to Impositions, insurance, utilities, repairs,
maintenance, environmental maintenance, remediation and compliance and other
routine and customary costs and expenses of operating and maintaining the Leased
Premises or the Related Premises which remain occupied by Tenant. Nothing
contained in this Paragraph 23(c)

                                      -34-
<PAGE>

shall limit any amounts payable by Tenant with respect to Basic Rent or
Additional Rent or indemnification obligation if any Event of Default that is
not a Limited Remedy Default has occurred.

            (d) Notwithstanding anything to the contrary herein contained, in
lieu of or in addition to any of the foregoing remedies and damages, landlord
may exercise any remedies and collect any damages available to it at law or in
equity. If Landlord is unable to obtain full satisfaction pursuant to the
exercise of any remedy, it may pursue any other remedy which it has hereunder or
at law or in equity.

            (e) Except for retaining a third-party broker to relet the Leased
Premises upon commercially reasonable terms, if this Lease is terminated and
Tenant vacates the Leased Premises pursuant to Paragraph 23(a)(i), Landlord
shall not be required to mitigate any of its damages hereunder unless required
to by applicable Law. If any Law shall validly limit the amount of any damages
provided for herein to an amount which is less than the amount agreed to herein,
Landlord shall be entitled to the maximum amount available under such Law.

            (f) No termination of this Lease, repossession or reletting of the
Leased Premises, exercise of any remedy or collection of any damages pursuant to
this Paragraph 23 shall relieve Tenant of any Surviving Obligations.

            (g) WITH RESPECT TO ANY REMEDY OR PROCEEDING OF LANDLORD OR TENANT
HEREUNDER, LANDLORD AND TENANT HEREBY WAIVE ANY RIGHT TO A TRIAL BY JURY.

            (h) Upon the occurrence and during the continuance of any Event of
Default, Landlord shall have the right (but no obligation) to perform any act
required of Tenant hereunder and, if performance of such act requires that
Landlord enter the Leased Premises, Landlord may enter the Leased Premises, at
reasonable times and upon reasonable notice for such purpose.

            (i) No failure of Landlord (i) to insist at any time upon the strict
performance of any provision of this Lease or (ii) to exercise any option,
right, power or remedy contained in this Lease shall be construed as a waiver,
modification or relinquishment thereof. A receipt by Landlord of any sum in
satisfaction of any Monetary Obligation with knowledge of the breach of any
provision hereof shall not be deemed a waiver of such breach, and no waiver by
Landlord of any provision hereof shall be deemed to have been made unless
expressed in a writing signed by Landlord.

            (j) Tenant hereby waives and surrenders, for itself and all those
claiming under it, including creditors of all kinds, (i) any right and privilege
which it or any of them may have under any present or future Law to redeem any
of the Leased Premises or to have a continuance of this Lease after termination
of this Lease or of Tenant's right of occupancy or possession pursuant to any
court order or any provision hereof, and (ii) the benefits of any present or
future Law which exempts property from liability for debt or for distress for
rent.

                                      -35-
<PAGE>

            (k) Except as otherwise provided herein, all remedies are cumulative
and concurrent and no remedy is exclusive of any other remedy. Each remedy may
be exercised at any time an Event of Default has occurred and is continuing and
may be exercised from time to time. No remedy shall be exhausted by any exercise
thereof.

      24.   Notices. All notices, demands, requests, consents, approvals,
offers, statements and other instruments or communications required or permitted
to be given pursuant to the provisions of this Lease shall be in writing and
shall be deemed to have been given and received for all purposes when delivered
in person or by Federal Express or other reliable 24-hour delivery service or
five (5) Business Days after being deposited in the mail in Canada or in the
United States mail, by registered or certified mail, return receipt requested,
postage prepaid, addressed to the other party at its address stated above or
when delivery is refused. A copy of any notice given by Tenant to Landlord shall
simultaneously be given by Tenant to Reed Smith LLP, 2500 One Liberty Place,
Philadelphia, PA 19103, Attention: Chairman, Real Estate Department. A copy of
any notice given by Landlord to Tenant shall simultaneously be given by Landlord
to Paul, Weiss, Rifkind, Wharton & Garrison, 1285 Avenue of the Americas, New
York, New York 10019-6064, Attention: Carl L. Reisner. For the purposes of this
Paragraph, any party may substitute another address stated above (or substituted
by a previous notice) for its address by giving fifteen (15) Business Days'
notice of the new address to the other party, in the manner provided above.

      25.   Estoppel Certificate. At any time upon not less than fifteen (15)
days' prior written request by either Landlord or Tenant (the "Requesting
Party") to the other party (the "Responding Party"), the Responding Party shall
deliver to the Requesting Party a statement in writing, executed by an
authorized officer of the Responding Party, certifying (a) that, except as
otherwise specified, this Lease is unmodified and in full force and effect, (b)
the dates to which Basic Rent, Additional Rent and all other Monetary
Obligations have been paid, (c) that, to the knowledge of the signer of such
certificate and except as otherwise specified, no default by either Landlord or
Tenant exists hereunder, (d) Such other matters as the Requesting Party may
reasonably request including the matters set forth in "Exhibit E-2" and (e) if
Tenant is the Responding Party that, except as otherwise specified, there are no
proceedings pending or, to the knowledge of the signer, threatened, against
Tenant before or by any court or administrative agency which, if adversely
decided, would materially and adversely affect the financial condition and
operations of Tenant. Any such statements by the Responding Party may be relied
upon by the Requesting Party, any Person whom the Requesting Party notifies the
Responding Party in its request for the Certificate is an intended recipient or
beneficiary of the Certificate, any Lender, any Permitted Leasehold Mortgagee or
their assignees and by any prospective purchaser or mortgagee of any interest in
the Leased Premises. Any certificate required under this Paragraph 25 and
delivered by Tenant shall state that, in the opinion of each person signing the
same, he has made such examination or investigation as is necessary to enable
him to express an informed opinion as to the subject matter of such certificate,
and shall briefly state the nature of such examination or investigation.

      26.   Surrender. Except if Tenant purchases the Leased Premises, upon the
expiration or earlier termination of this Lease, Tenant shall peaceably leave
and surrender the

                                      -36-
<PAGE>

Leased Premises to Landlord in the same condition in which the Leased Premises
were at the commencement of this Lease, except as repaired, rebuilt, restored,
altered, replaced or added to as permitted or required by any provision of this
Lease, and except for ordinary wear and tear. Upon such surrender, Tenant shall
(a) remove from the Leased Premises all property which is owned by Tenant or
third parties other than Landlord and (b) repair any damage to the structural
elements of the Improvements or the building systems caused by such removal.
Property not so removed shall become the property of Landlord, and Landlord may
thereafter cause such property to be removed from the Leased Premises. The cost
of removing and disposing of such property and repairing any damage to any of
the Leased Premises caused by such removal shall be paid by Tenant to Landlord
upon demand. Landlord shall not in any manner or to any extent be obligated to
reimburse Tenant for any such property which becomes the property of Landlord
pursuant to this Paragraph 26.

      27. No Merger of Title. There shall be no merger of the leasehold estate
created by this Lease with the fee estate in any of the Leased Premises by
reason of the fact that the same Person may acquire or hold or own, directly or
indirectly, (a) the leasehold estate created hereby or any part thereof or
interest therein and (b) the fee estate in any of the Leased Premises or any
part thereof or interest therein, unless and until Landlord, Tenant, Lender and
any Permitted Leasehold Mortgagee shall join in a written instrument effecting
such merger and shall duly record the same.

      28. Books and Records.

          (a) Tenant shall keep adequate records and books of account with
respect to the finances and business of Tenant generally and with respect to the
Leased Premises, in accordance with accounting principles which are recognized
as being generally accepted in Canada from time to time as set forth in the
handbook published by the Canadian Institute of Chartered Accountants,
consistently applied ("GAAP") and shall permit Landlord and Lender by their
respective agents, accountants and legal counsel, upon reasonable notice to
Tenant, to visit and inspect the Leased Premises and examine (and make copies
of) the records and books of account and to discuss the finances and business
with the officers of Tenant, at such reasonable times as may be requested by
Landlord. Upon the request of Lender or Landlord (either telephonically or in
writing), Tenant shall provide the requesting party with copies of any
information to which such party would be entitled in the course of a personal
visit.

          (b) If at any time during the Term, a Tenant shall not be part of
the Guarantor's group for the purpose of reporting financial positions and
results on a consolidated basis, such Tenant shall deliver to Landlord and to
Lender within ninety (90) days of the close of each Fiscal year, annual audited
financial statements of Tenant prepared by a nationally recognized firm of
independent chartered accountants. Tenant shall also furnish to Landlord within
forty-five (45) days after the end of each of the three remaining quarters
unaudited financial statements and all other quarterly reports of Tenant,
certified by Tenant's chief financial officer. All financial statements shall be
prepared in accordance with GAAP consistently applied. All annual financial
statements shall be accompanied (i) by an opinion of said accountants stating
that (A) there are no qualifications as to the scope of the audit and

                                      -37-
<PAGE>

(B) the audit was performed in accordance with GAAP. All financial statements
shall be accompanied by the affidavit of the president or a vice president of
Tenant, dated within five (5) Business Days of the delivery of such statement,
stating that (C) the affiant knows of no Event of Default, or event which, upon
notice or the passage of time or both, would become an Event of Default which
has occurred and is continuing hereunder or, if any such event has occurred and
is continuing, specifying the nature and period of existence thereof and what
action Tenant has taken or proposes to take with respect thereto and (D) except
as otherwise specified in such affidavit, that Tenant has fulfilled all of its
obligations under this Lease which are required to be fulfilled on or prior to
the date of such affidavit.

      29.   Determination of Value.

            (a) Whenever a determination of Fair Market Rental Value is required
pursuant to any provision of this Lease, such Fair Market Rental Value shall be
determined in accordance with the fallowing procedure:

                  (i) Landlord and Tenant shall endeavor to agree on Fair Market
Rental Value on the date (the "Applicable Initial Date") which is six (6)
calendar months prior to the expiration of the then current Term unless Tenant
has previously exercised its option pursuant to Paragraph 5(b) not to have the
Term automatically extended. Upon reaching such agreement, the parties shall
execute an agreement setting forth the amount of such Fair Market Rental Value.

                  (ii) If the parties shall not have signed such agreement
within thirty (30) days after the Applicable Initial Date, Tenant shall within
fifty (50) days after the Applicable Initial Date select an appraiser and notify
Landlord in writing of the name, address and qualifications of such appraiser.
Within twenty (20) days following Landlord's receipt of such notice, Landlord
shall select an appraiser and notify Tenant of the name, address and
qualifications of such appraiser. If Landlord shall fail to select an appraiser
and notify Tenant as aforesaid within said twenty-day period, then provided that
such failure shall continue for five (5) additional Business Days after notice
thereof from Tenant to Landlord, the determination of Tenant's appraiser shall
govern. Otherwise, such two appraisers shall endeavor to agree upon Fair Market
Rental Value based on a written appraisal made by each of them (and given to
both parties) as of the Relevant Date. If such two appraisers shall agree upon a
Fair Market Rental Value, the amount of such Fair Market Rental Value as so
agreed shall be binding and conclusive upon Landlord add Tenant.

                  (iii) If such two appraisers shall be unable to agree upon
Fair Market Rental Value within twenty (20) days after the selection of an
appraiser by Landlord, then such appraisers shall advise Landlord and Tenant of
their respective determinations of Fair Market Rental Value and shall select a
third appraiser to make the determination of Fair Market Rental Value. The
selection of the third appraiser shall be binding and conclusive upon Landlord
and Tenant.

                  (iv) If such two appraisers shall be unable to agree upon the
designation of a third appraiser within ten (10) Business Days after the
expiration of the twenty (20) day period referred to in clause (iii) above, or
if such third appraiser does not make a determination of Fair Market Rental
Value within twenty (20) days after his selection, then such third appraiser or
a substituted third appraiser, as applicable, shall, at the request of either
party hereto, be appointed by the President or Chairman of the American
Arbitration Association in

                                      -38-
<PAGE>

New York, New York. The determination of Fair Market Rental Value made by the
third appraiser appointed pursuant hereto shall be made within twenty (20) days
after such appointment.

                  (v) If a third appraiser is selected, Fair Market Rental Value
shall be the average of the determination of Fair Market Rental Value made by
the third appraiser and the determination of Fair Market Rental Value made by
the appraiser (selected pursuant to Paragraph 29(a)(ii) hereof) whose
determination of Fair Market Rental Value is nearer to that of the third
appraiser. Such average shall be binding and conclusive upon Landlord and
Tenant.

                  (vi) All appraisers selected or appointed pursuant to this
Paragraph 29(a) shall (A) be independent qualified MAI appraisers (B) have no
right, power or authority to alter or modify the provisions of this Lease, (C)
utilize the definition of Fair Market Rental Value set forth herein, and (D) be
registered in the state where the Leased Premises or applicable Related Premises
are located if the state requires such registration. The Cost of the procedure
described in this Paragraph 29(a)(i) clauses (A) through (C) above shall be
shared equally between Landlord and Tenant and the cost of the procedure
described in this Paragraph 29(a)(i)(D) shall be paid by Tenant.

            (b) If, by virtue of any delay, Fair Market Rental Value is not
determined by the expiration or termination of the then current Term, then until
Fair Market Rental Value is determined, Tenant shall continue to pay Basic Rent
during the succeeding Renewal Term in the same amount which it was obligated
under this Lease to pay prior to the commencement of the Renewal Term. When Fair
Market Rental Value is determined, the appropriate Basic Rent shall be
calculated retroactive to the commencement of the Renewal Term and Tenant shall
either receive a refund from Landlord (in the case of an overpayment) or shall
pay any deficiency to Landlord (in the case of an underpayment).

            (c) In determining Fair Market Rental Value, the appraisers shall
determine with respect to the Leased Premises the amount that a willing tenant
would pay, and a willing landlord of a comparable building located in a radius
of fifty (50) miles of the Leased Premises would accept, at arm's length, to
rent a building of comparable size and quality as the Improvements, taking into
account: (i) the age, quality and condition (as required by the Lease) of the
Improvements and that the Improvements are being leased on an "as-is" basis
without any improvement allowance or free rent; (ii) that the Leased Premises
will be leased as a whole or substantially as a whole to a single user for the
uses permitted under this Lease, (iii) a lease term of ten (10) years, with
annual CPI-based increases; (iv) an absolute triple net lease; and (v) such
other items that professional real estate appraisers customarily consider.

      30. Non-Recourse as to Landlord. ANYTHING CONTAINED HEREIN TO THE CONTRARY
NOTWITHSTANDING, ANY CLAIM BASED ON OR IN RESPECT OF ANY LIABILITY OF LANDLORD
UNDER THIS LEASE SHALL BE ENFORCED ONLY AGAINST THE LEASED PREMISES AMD NOT
AGAINST ANY OTHER ASSETS, PROPERTIES OR FUNDS OF (I) LANDLORD, (II) ANY
DIRECTOR, OFFICER, MEMBER, GENERAL PARTNER, SHAREHOLDER, LIMITED PARTNER,
BENEFICIARY, EMPLOYEE OR AGENT OF LANDLORD OR ANY GENERAL PARTNER OF LANDLORD OR
ANY OF ITS MEMBERS OR GENERAL PARTNERS (OR ANY LEGAL

                                      -39-
<PAGE>

REPRESENTATIVE, HEIR, ESTATE, SUCCESSOR OR ASSIGN OF ANY THEREOF), (III) ANY
PREDECESSOR OR SUCCESSOR PARTNERSHIP OR CORPORATION (OR OTHER ENTITY) OF
LANDLORD OR ANY OF ITS GENERAL PARTNERS, SHAREHOLDERS, OFFICERS, DIRECTORS,
MEMBERS, EMPLOYEES OR AGENTS, EITHER DIRECTLY OR THROUGH LANDLORD OR ITS GENERAL
PARTNERS, SHAREHOLDERS, OFFICERS, DIRECTORS, EMPLOYEES OR AGENTS OR ANY
PREDECESSOR OR SUCCESSOR PARTNERSHIP OR CORPORATION (OR OTHER ENTITY), OR (IV)
ANY PERSON AFFILIATED WITH ANY OF THE FOREGOING, OR ANY DIRECTOR, OFFICER,
EMPLOYEE OR AGENT OF ANY THEREOF.

      31.   Landlord's Financing.

            (a) Tenant agrees to pay directly to Lender, if required by a
Lender, any cost, charge or expense for which Tenant has agreed to reimburse or
indemnify Landlord hereunder.

            (b) If Landlord desires to obtain or refinance any Loan, Tenant
shall negotiate in good faith with Landlord concerning any request made by any
Lender or proposed Lender for changes or modifications in this Lease; provided,
that Landlord shall reimburse Tenant for its out-of-pocket costs relating
thereto and provided further that no such change or modification shall increase
Tenants' obligations or decrease Tenant's rights under the Lease in any material
respect. In particular, Tenant shall agree, upon request of Landlord, to supply
any such Lender with such notices and information as Tenant is required to give
to Landlord hereunder and to extend the rights of Landlord hereunder to any such
Lender and to consent to such financing if such consent is requested by such
Lender. Tenant shall provide any other consent or statement and shall execute
any and all other documents that such Lender reasonably requires in connection
with such financing, including any environmental indemnity agreement, so long as
the same do not adversely affect any right, benefit or privilege of Tenant under
this Lease or increase Tenant's obligations under this Lease in any material
respect.

      32. Subordination; Non-Disturbance and Attornment. This Lease and Tenant's
interest hereunder shall be subordinate to any Mortgage or other security
instrument hereafter placed upon the Leased Premises by Landlord provided that
the Lender shall have delivered to Tenant an agreement (an "SNDA Agreement") in
a form substantially identical to Exhibit "E-1" annexed hereto and acknowledged
by Lender and such Landlord. Tenant covenants and agrees that Tenant shall enter
into such SNDA Agreement within five (5) Business days following Landlord's
written request and with such modifications as the Lender shall reasonably
request; provided that Paragraph 1 (Subordination) of Exhibit "E-1" shall not be
subject to any modifications, and, provided further that, if Lender requests
substantive modifications to the SNDA Agreement, Tenant shall have such
additional time to negotiate such modifications as is reasonably required based
on the nature and scope of the requested modifications.

      33. Tax Treatment; Reporting. Landlord and Tenant each acknowledge that
each shall treat this transaction as a lease for tax purposes and for income tax
purposes each

                                      -40-
<PAGE>

shall report this Lease as a lease with Landlord as the owner of the Leased
Premises and Equipment and Tenant as the lessee of such Leased Premises and
Equipment including: (1) treating Landlord as the owner of the Leased Premises
eligible to claim depreciation deductions under applicable tax laws with respect
to the Leased Premises and Equipment but only as the same exist on the date
hereof or are hereafter paid for by Landlord, (2) treating Tenant as the owner
of the property eligible to claim depreciation deductions by Tenant with respect
to the Equipment and Alterations paid for by Tenant and incorporated into the
Leased Premises after the date hereof, (3) Tenant reporting its Rent payments as
rent expense under applicable tax laws, and (4) Landlord reporting the Rent
payments as rental income under applicable tax laws. Tenant shall be entitled to
withhold from any amount payable to landlord under this Lease such amount (and
only such amount) required to be withheld by Tenant pursuant to any applicable
Canadian Federal withholding tax provisions or any other Canadian Federal or
provincial tax laws and Tenant shall immediately remit any such amounts withheld
to the Canada Revenue Agency, or any successor thereto, on behalf of the
Landlord.

            34. Permitted Leasehold Mortgage. Tenant shall not encumber its
leasehold estate in the Leased Premises, by means of a leasehold mortgage,
deed of trust, pledge or similar security device, except by means of a Permitted
Leasehold Mortgage. The Leased Premises shall not be encumbered by more than one
Permitted Leasehold Mortgage at any one time. Tenant shall deliver to Landlord
an executed counterpart of any Permitted Leasehold Mortgage within ten (10) days
after its execution thereof.

            35. Rights of Permitted Leasehold Mortgagee. Landlord hereby agrees
that, so long as any Permitted Leasehold Mortgage shall remain unsatisfied of
record, the following provisions shall apply:

                  (a) Landlord, upon giving  Tenant any notice of a default or
an Event of Default hereunder, shall also give such notice to any Permitted
Leasehold Mortgagee from whom it had received an address in writing.

                  (b) Upon the occurrence of an Event of Default hereunder, the
Permitted leasehold Mortgagee shall, within the period provided for in Paragraph
22 hereof, as extended as hereinafter provided, have tie right to remedy such
default, or cause the same to be remedied, and Landlord shall accept such
performance by or at the instance of the Permitted Leasehold Mortgagee as if the
same had been made by Tenant.

                  (c) Upon the occurrence of an Event of Default hereunder,
Landlord shall not terminate this Lease without first giving the Permitted
Leasehold Mortgagee ninety (90) days after notice thereof within which either
(i) to obtain possession of the Leased Premises (including possession by a
receiver) or (ii) to institute foreclosure proceedings or (iii) otherwise act to
acquire Tenant's interest under this Lease with diligence. The preceding
sentence shall not apply and Landlord may terminate this Lease if:

                        (1) An Event of Default shall have occurred that is then
Susceptible of being Cured by the Permitted Leasehold Mortgagee without
obtaining possession
                                      -41-
<PAGE>
of the Leased Premises and the Permitted Leasehold Mortgagee (1) shall not have
cured any Event of Default consisting of a failure to pay Basic Rent or
Additional Rent within five (5) Business Days after notice from Landlord of such
Event of Default, or (2) shall not, within the applicable cure period specified
in Paragraph 22(b) after notice from Landlord of such Event of Default, have
cured any Event of Default (other than a failure to pay Basic Rent or Additional
Rent);

                        (2) an Event of Default (other than any Event of Default
described in subparagraph (A)(i) above) shall have occurred and either (1) the
Permitted Leasehold Mortgagee, within fifteen (15) days after the giving by
Landlord of notice of such Event of Default, shall not have given written notice
to Landlord that such Event of Default cannot be remedied without obtaining
possession of the Leased Premises; or (2) the Permitted Leasehold Mortgagee
shall not have paid or caused to be paid all Rent and other sums payable under
this Lease; or (3) the Permitted Leasehold Mortgagee shall. within fifteen (15)
days after notice from Landlord of such Event of Default, fail to give Landlord
a written notice that it shall, after obtaining possession, and within the
applicable cure period provided in Paragraph 22(b), curt any such Event of
Default which is susceptible of cure only upon taking possession; (D) the
Permitted Leasehold Mortgagee shall fail to pursue with diligence the activities
specified in (i), (ii) or (iii) of the first sentence of this Paragraph 35(c);
or (5) the Permitted Leasehold Mortgagee within thirty (30) days after the
giving by Landlord of notice of such Event of Default shall not have given
written notice to Landlord that such Event of Default is not reasonably
susceptible of being cured by the Permitted Leasehold Mortgagee.

                  (d) It is expressly understood, without limiting the
generality of the foregoing language, that any failure of Tenant to perform any
of its obligations under Paragraph 18, Paragraph 23(b)(iii) or Paragraph 29 is
susceptible of cure by the Permitted Leasehold Mortgagee without taking
possession, and Tenant hereby authorizes the Permitted Leasehold Mortgagee, on
behalf of Tenant, to send any notice, make any offer, pay any amount, select an
appraiser, and perform any other obligation of Tenant provided in said
Paragraphs.

                  (e) In addition to curing any Event of Default which is
susceptible of being cured without taking possession, the Permitted Leasehold
Mortgagee shall, during the period it is taking the action in clauses (i), (ii)
or (iii) of the first sentence of Paragraph 35(c) above, pay Basic Rent and
Additional Rent as the same shall become due and payable and, upon obtaining
possession or acquiring Tenant's interest under this Lease, shall be required to
commence to cure within thirty (30) days of such acquisition or possession all
Events of Default then outstanding and reasonably susceptible of being cured by
the Permitted Leasehold Mortgage, and thereafter diligently prosecute such cure
to completion; provided, that: (i) the Permitted Leasehold Mortgagee shall not
be obligated to continue such possession or to continue such foreclosure
proceedings after such Events of Default shall have been cured, and (ii) the
Permitted Leasehold Mortgagee shall agree with Landlord in writing to comply
during the period of such forbearance with such of the terms, conditions and
covenants of this Lease as are reasonably susceptible of being complied with by
the Permitted Leasehold Mortgagee.

                                      -42-
<PAGE>

                  (f) It is understood and agreed, that the Permitted Leasehold
Mortgagee or its designees or any purchaser in foreclosure proceedings
(including a corporation formed by any Permitted Leasehold Mortgagee or the
holder or holders of the obligations secured by the Permitted Leasehold
Mortgage) may become the legal owner and holder of this Lease through such
foreclosure proceedings or by assignment of this Lease in lieu of foreclosure
provided, however that the Permitted Leasehold Mortgagee shall guarantee all of
the obligations and Liabilities of Tenant hereunder (except those which are
personal to Tenant, e.g., the obligations of Tenant under Paragraph 28) except
that the Permitted Leasehold Mortgagee shall be released from liability under
this Lease if the substitute tenant is approved by Landlord in its reasonable
discretion applying prudent business judgment or if the substitute tenant is a
Preapproved Assignee.

                  (g) If a termination of this Lease occurs prior to the
expiration of the Term by reason of the rejection of this Lease or other action
by a trustee, court or debtor in possession pursuant to the Bankruptcy &
Insolvency Act (Canada), as amended, or any other Federal, provincial or local
insolvency laws, Landlord shall give the Permitted Leasehold Mortgagee written
notice that this Lease has been terminated, together with a statement of any and
all sums which would at that time be due under this Lease but for such
termination, and of all other Events of Default, if any, under this Lease then
known to Landlord. The Permitted Leasehold Mortgagee shall thereupon have the
option to obtain a new lease in accordance with and upon the following terms and
conditions: (i) such new lease shall be effective as of the date of termination
of this Lease and shall be for the remainder of the full original term and at
the rent and upon all the agreements, terms, covenants and conditions hereof;
(ii) such new lease shall require the tenant to perform any unfulfilled
obligations of Tenant under this Lease which are reasonably susceptible of being
performed by such tenant; (iii) if the Permitted Leasehold Mortgagee designates
an entity to enter into such new lease, die Permitted Leasehold Mortgagee shall
guarantee all of the obligations and liabilities of such designee hereunder on
the same terms and conditions as those contained in the Guarantee (except those
which are personal to such designee, e.g., the obligations of such designee to
permit Landlord to inspect its books and records or to supply financial
statements to Landlord except that no such guarantee shall be required if such
designee is approved by Landlord in its sole discretion; (iv) upon the execution
of such new lease, the tenant named therein shall pay any and all Rent which
would at the time of the execution thereof be due under this Lease but for such
termination, less the net proceeds, if any, of any reletting or other occupancy,
after deducting from such proceeds all of Landlord's expenses in connection with
such reletting (including all repossession costs, brokerage commissions, legal
expenses, attorneys, fees, employees' expenses, costs of alterations and
expenses of preparation for reletting).

                  (h) Any notice or other communication which Landlord shall
desire or is required to give to or serve upon any Permitted Leasehold Mortgagee
shall be addressed to such Permitted Leasehold Mortgagee by notice in writing
given to Landlord in accordance with Paragraph 24 hereof. Any notice or other
communication which any Permitted Leasehold Mortgagee shall desire or is
required to give to or serve upon Landlord shall be deemed to have been duly
given or served if sent in accordance with Paragraph 24 hereof.

                                      -43-
<PAGE>

                  (i) The provisions of this Paragraph 35 shall be
self-operative and shall benefit any Permitted Leasehold Mortgagee of which
Landlord has actual notice. Notwithstanding the foregoing, Landlord shall, at
the request of Tenant or the Permitted Leasehold Mortgagee, and at the sole cost
and expense of Tenant or the Permitted Leasehold Mortgagee, enter into an
agreement directly with the Permitted Leasehold Mortgagee having terms and
provisions identical to the provisions of this Paragraph 35.

                  (j) A Permitted Leasehold Mortgagee shall have the right but
not the duty to attempt to remedy a default or an Event of Default.

                  (k) The Tenant agrees to pay to the Landlord, in addition to
Basic Rent, and Additional Rent, any goods and services tax, business transfer
tax, value-added tax, multi-stage sales tax, sales, use or consumption tax, or
any like tax imposed by any governmental authority in respect of this Lease or
in respect of the Leased Premises and services provided hereunder, including
without limitation, such taxes calculated on or in respect of any Rent (whether
Basic Rent or Additional Rent) payable under this Lease; any such tax shall he
deemed not to be Rent, but the Landlord shall have the same remedies for and
rights of recovery of such amount as it has for recovery of Rent under this
Lease.

            36. Grants and Releases of Easements. So long as no Event of Default
has occurred and is continuing Landlord hereby agrees to reasonably cooperate
with, the following actions by Tenant, in the name and stead of Landlord and
cause Lender to cooperate with, but at Tenant's sole cost and expense: (a) the
granting of easements, licenses, rights-of-way and other rights and privileges
in the nature of easements reasonably necessary or desirable for the
construction, operation, restoration, use, repair, renovation or maintenance of
the Leased Premises as herein provided; (b) the execution of petitions to have
the Leased Premises annexed to any municipal corporation or utility district;
(c) the execution of amendments to any covenants and restrictions affecting the
Leased Premises; (d) Tenant's obtaining all necessary government or third-party
actions, consents or agreements necessary for the performance and completion of
any Alteration provided, that in each case Tenant shall have delivered to
Landlord a certificate stating that: (i) such grant, release, dedication,
transfer, amendment or government action, or other action or agreement (any of
the foregoing, a "Property Action") does not impair the value, utility and
remaining useful life of the Leased Premises, (ii) such Property Action is
reasonably necessary in connection with the use, maintenance, alteration,
renovation, construction, operation, restoration, repair or improvement of the
Leased Premises, (iii) Tenant shall remain obligated under this Lease and under
any instrument executed by Tenant consenting to the assignment of Landlord's
interest in this Lease as security for indebtedness, in each such case, in
accordance with their terms, as though such Property Action had not been
effected and (iv) Tenant shall pay any Costs or Landlord under such Properly
Action. Without limiting the effectiveness of the foregoing, Landlord shall,
within thirty (30) days of receipt of the written request of Tenant, and at
Tenant's sole cost and expense (including reasonable fees and disbursements of
counsel to Landlord and Lender to review such Property Action), review and
either approve or disapprove in writing the proposed Property Action, and, if
approved, execute and deliver any instruments and take any other action
reasonably necessary or appropriate to

                                      -44-
<PAGE>

confirm any such Property Action, to any person permitted under this Paragraph
36 or to implement any such Property Action.

            37. Intentionally Omitted.

            38. Post-Closing Obligations.

                  (a) Pursuant to those certain Property Condition Reports,
Environmental Audit Reports and Zoning Reports received by Landlord with respect
to the Leased Premises Tenant shall complete, remediate or obtain or caused to
be completed, remediated or obtained the Post-Closing Obligations within the
time periods specified in Exhibit "F".

                  (b)   (i) On the date hereof, Tenant has deposited wide
Landlord a letter of credit (the "Environmental Letter of Credit" in the amount
of $1,622,250 (the "Environmental Escrow") which shall secure the obligation of
Tenant to complete the Post-Closing Obligation listed in Paragraphs B and C of
Exhibit "F" (the "Post-Closing Environmental Obligations").

                        (ii) The Environmental Letter of Credit shall be issued
by a bank acceptable to Landlord and having a long-term unsecured debt rating
of not less than "A" from S&P and in form and substance satisfactory to
Landlord The Environmental Letter of Credit shall be renewed at least thirty
(30) days prior to any expiration thereof. If Tenant fails to renew the
Environmental Letter of Credit by the date, time being of the essence, Landlord
shall have the right at any time after the thirtieth (30th) day before such
expiration date to draw on such Environmental Letter of Credit and to hold the
proceeds thereof as a cash Environmental Escrow.

                        (iii) The Environmental Letter of Credit shall remain in
full force and effect until Tenant is entitled to the return or reduction of the
applicable Environmental Escrow as provided for herein. The Environmental Letter
of Credit shall be returned to Tenant within thirty (30) days following the
earlier to occur of (A) written consent of Lender to release the Environmental
Letter of Credit or (B) (ix) remediation of the environmental contamination and
completion of those matters specified in Paragraph C of Exhibit "F" in
accordance with Paragraph C of Exhibit "F" and evidence of payment in full of
all remediation costs in connection with such remediation and (y) Tenant
provides Landlord evidence of completion of the items specified in Paragraph B
of Exhibit "F" as evidenced by written and photographic evidence reasonably
satisfactory to Landlord that the applicable Environmental Obligations have been
completed and evidence of payment in full of all remediation costs.

                        (iv) So long as no Event of Default has occurred and is
continuing, if the amount Landlord's Lender requires to be deposited in
connection with the initial Loan with respect to environmental matters is less
then the amount of the applicable Environmental Escrow set forth above, then,
Tenant shall have the right to substitute new Environmental Letters of Credit in
such reduced amounts and upon receipt by Landlord of such

                                      -45-
<PAGE>

new Environmental Letters of Credit, Landlord shall promptly return the
applicable original Environmental Letter or Credit to Tenant.

                  (c) On the date hereof, Tenant has deposited with Landlord the
amount of $3,750 U.S. Dollars (the "Post-Closing Compliance Escrow") in the form
of cash which shall secure the obligation of Tenant to complete (the Post
Closing Obligations listed in Paragraph E of Exhibit "F" (the "Post-Closing
Compliance Obligations"), and shall be held and disbursed as set forth in this
Paragraph 39. The Post-Closing Compliance Escrow shall be released to Tenant
within thirty (30) days following the date on which Landlord receives written
and photographic evidence reasonably satisfactory to Landlord that all
Post-Closing Compliance Obligations have been completed (which shall include
written and photographic evidence and evidence of payment in full).

                  (d) If, at any time prior to the release of the Post-Closing
Environmental Escrow or the Post-Closing Compliance Escrow, an Event of Default
shall have occurred and be continuing, Landlord shall be entitled to draw upon
the Post-Closing Environmental Letter of Credit, any cash Post-Closing
Environmental Escrow or the Post-Closing Compliance Escrow (collectively, the
"Post-Closing Escrow") and shall use the proceeds of the Post-Closing Escrow to
the extent required to satisfy the Post-Closing Environmental Obligations or
Post-Closing Compliance Obligations, as applicable, and be entitled, at its sole
discretion, to apply any remaining balance in payment of any Rent or other
charges which have not been made pursuant to this Lease and any other sums due
to Landlord in connection with any default or the curing thereof, including,
without limitation, any damages incurred by Landlord by reason of such default.
Tenant acknowledges and agrees that such proceeds shall not constitute assets or
funds of Tenant or its estate, or be deemed to be held in trust for Tenant, but
shall be, for all purposes, the property of Landlord (or Lender, to the extent
assigned). Tenant further acknowledges and agrees that Landlord's application of
the proceeds of any Post-Closing Escrow towards the payment of Basic Rent,
Additional Rent or the reduction of any damages due Landlord in accordance with
Paragraph 23 of this Lease, constitute a fair and reasonable use of such
proceeds, and the application of such proceeds by Landlord towards the payment
of Basic Rent, Additional Rent or any other sums due under this Lease shall not
constitute a cure by Tenant of the applicable default, provided that an Event of
Default shall not exist if Tenant restores the applicable Post-Closing Escrow to
its full amount within three (3) days and in accordance with the requirements of
this Paragraph 39, so that the applicable amount of the Post-Closing Escrow
shall be again on deposit with Landlord.

                  (e) Landlord shall have the right to designate Lender or any
other holder of a Mortgage as the holder of the Post-Closing Escrow (including
assigning to Lender the Post-Closing Environmental Letter of Credit at Tenant's
sole cost or expense) during the term of the applicable Loan who shall have all
of the rights of Landlord under this Paragraph 39. Tenant covenants and agrees
to execute such agreements, consents and acknowledgements as may be requested by
Landlord from time to time to change the holder of each Post-Closing Escrow as
hereinabove provided.

                                      -46-
<PAGE>

            39. Miscellaneous.

                  (a) The paragraph headings in this Lease are used only for
convenience in finding the subject matters and are not part of this Lease or to
be used in determining the intent of the parties or otherwise interpreting this
Lease.

                  (b) As used in this Lease, the singular shall include the
plural and any gender shall include all genders as the context requires and the
following words and phrases shall have the following meanings: (i) "including"
shall mean "including without limitation"; (ii) "provisions" shall mean
"provisions, terms, agreements, covenants and/or conditions"; (iii) "lien" shall
mean "lien, charge, encumbrance, title retention agreement, pledge, security
interest, mortgage and/or deed of trust"; (iv) "obligation" shall mean
"obligation, duty, agreement, liability, covenant and/or condition"; (v) "any of
the Leased Premises" shall mean "the Leased Premises or any part thereof or
interest therein, including any one or more Related Promises"; (vi) "any of the
Land" shall mean "the Land or any part thereof or interest therein"; (vii) "any
of the Improvements" shall mean "the Improvements or any part thereof or
interest therein"; (viii) "any of the Equipment" shall mean "the Equipment or
any part thereof or interest therein"; and (ix) "any of the Adjoining Property"
shall mean "the Adjoining Property or any part thereof or interest therein".

                  (c) Any act which Landlord is permitted to perform under this
Lease may be performed at any time and from time to time by Landlord or any
person or entity designated by Landlord. Each appointment of Landlord as
attorney-in-fact for Tenant hereunder is irrevocable and coupled with an
interest. Landlord shall not unreasonably withhold or delay its consent,
approval or other determination, whenever such consent, approval or other
determination, is requited under this Lease. Time is of the essence with respect
to the performance by the parties of their obligations under this Lease.

                  (d) Landlord shall in no event be construed for any purpose to
be a partner, joint venturer or associate of Tenant or of any subtenant,
operator, concessionaire or licensee of Tenant with respect to any of the Leased
Premises or otherwise in the conduct of their respective businesses.

                  (e) This Lease and any documents which may be executed by
Tenant on or about the effective date hereof at Landlord's request constitute
the entire agreement between the parties and supersede all prior understandings
and agreements, whether written or oral, between the parties hereto relating to
the Leased Premises and the transactions provided for herein. Landlord and
Tenant are business entities having substantial experience with the subject
matter of this Lease and have each fully participated in the negotiation and
drafting of this Lease. Accordingly, this Lease shall be construed without
regard to the rule that ambiguities in a document are to be construed against
the drafter.

                  (f) This Lease may be modified, amended, discharged or waived
only by an agreement in writing signed by the party against whom enforcement of
any such modification, amendment, discharge or waiver is sought.

                                      -47-
<PAGE>

                  (g) The covenants of this Lease shall run with the land and
bind Tenant, its successors and assigns and all present and subsequent
encumbrancers and subtenants of any of the Leased Premises, and shall inure to
the benefit of Landlord, its successors and assigns. If there is more than one
Tenant, the obligations of each shall be joint and several.

                  (h) If any one or more of the provisions contained in this
Lease shall for any reason be held to be invalid, illegal or unenforceable in
any respect, such invalidity, illegality or unenforceability shall not affect
any other provision of this Lease, but this Lease shall be construed as if such
invalid, illegal or unenforceable provision had never been contained herein.

                  (i) All exhibits attached hereto are incorporated herein as if
fully set forth.

                  (j) This Lease shall be governed by and construed and enforced
in accordance with the Laws of the Province.

                  (k) All dollar amounts set forth in this Lease are Canadian
Dollars except as expressly set forth to the contrary herein.

                  (l) Tenant represents, warrants and covenants with Landlord
that Tenant is not, nor will Tenant become, a Person with whom U.S. persons or
entities are restricted from doing business under regulations of the Office of
Foreign Asset Control ("OFAC") of the Department of the Treasury (including
those named on OFAC's Specially Designated and Blocked Persons list) or under
any statute, executive order (including the September 24, 2001, Executive Order
Blocking Property and Prohibiting Transactions with Parsons Who Commit, Threaten
to Commit, or Support Terrorism), or other governmental action and Tenant will
not engage in any dealings or transactions or be otherwise associated with such
persons or entities.

                  (m) This Lease may be executed in a number of counterparts and
by different parties hereto in separate counterparts each of which, when so
executed, shall be deemed to be an original and all of which taken together
shall constitute but one and the same agreement.

                  [REMAINDER OF PAGE LEFT INTENTIONALLY BLANK]

                                      -48-
<PAGE>

            IN WITNESS WHEREOF, Landlord and Tenant have caused this Lease to be
duly executed as of the day and year first above written.

                                    LANDLORD:

                                    PG-NOM (ALBERTA), INC., an Alberta
                                    corporation, as nominee for PG-TRUST
                                    (DE), a trust formed under the laws of the
                                    State of Delaware

                                    By: /s/ Peter E. Kaplan
                                        ---------------------------

                                    Title: Director

                                    TENANT:

                                    CWD WINDOWS AND DOORS, INC.,

                                    a Canadian corporation

                                    By: /s/ Shawn K. Poe
                                        ---------------------------

                                    Title: Vice President

            SIGNATURE PAGE OF PLY GEM LEASE AGREEMENT, CANADA-1

<PAGE>

                                                                       EXHIBIT A

                                    PREMISES

Those pieces of land situate in the Province of Alberta described as follows:

FIRSTLY:              PLAN 316GV

                      BLOCK 1
                      LOT 1
                      EXCEPTING THE CORNER CUT ON PLAN 7710238
                      EXCEPTING THEREOUT ALL MINES AND MINERALS

SECONDLY:             PARCEL 1

                      PLAN 316GV
                      BLOCK 6
                      LOT 3
                      EXCEPTING THEREOUT ALL MINES AND MINERALS

                      PARCEL 2

                      PLAN 316GV
                      BLOCK 6
                      LOTS 4 AND 5
                      EXCEPTING THEREOUT ALL MINES AND MINERALS

 THIRDLY:             PLAN 316GV
                      BLOCK 6
                      LOT 1
                      EXCEPTING THEREOUT ALL MINES AND MINERALS

 FOURTHLY:            PARCEL 1

                      PLAN 31GV
                      BLOCK 6
                      LOT 6
                      EXCEPTING THEREOUT ALL MINES AND MINERALS

                      PARCEL 2

                      PLAN 316GV
                      BLOCK 6
                      LOTS 7, 8 and 9
                      EXCEPTING THEREOUT ALL MINES AND MINERALS

                      PARCEL 3

                      PLAN 316GV
                      BLOCK 6
                      THE NORTH HALF OF LOT 10
                      EXCEPTING THEREOUT ALL MINES AND MINERALS

                                    EXHIBIT A

<PAGE>
                                                                       EXHIBIT A

                      PARCEL 4

                      PLAN 316GV
                      BLOCK 6
                      THE SOUTH HALF OF LOT 10
                      EXCEPTING THEREOUT ALL MINES AND MENERALS

                      PARCEL 5

                      PLAN 316GV
                      BLOCK 6
                      LOT 11
                      EXCEPTING THEREOUT ALL MINES AND MENERALS

                      PARCEL 6

                      PLAN 3I6GV
                      BLOCK 6
                      LOT 12
                      EXCEPTING THEREOUT THAT PORTION OF LOT 12 FOR
                      CORNER
                      CUT ON PLAN 7710195
                      EXCEPTING THEREOUT ALL MINES AND MINERALS

FIFTHLY:              PARCEL 1

                      PLAN 5998JK
                      BLOCK 19
                      LOT 15
                      EXCEPTING THEREOUT ALL MINES AND MINERALS

                      PARCEL 2

                      PLAN 5998JK
                      BLOCK 19
                      LOTS 16 AND 17
                      EXCEPTING THEREOUT ALL MINES AND MINERALS

                      PARCEL 3

                      PLAN 5882AB
                      BLOCK 19
                      THE SOUTH HALF OF LOT C
                      EXCEPTING THEREOUT ALL MINES AND MINERALS

                                    EXHIBIT A
<PAGE>
                                                                       EXHIBIT B

                            MACHINERY AND EQUIPMENT

All fixtures, machinery, apparatus, equipment, fitting and appliances of every
kind and nature whatsoever now or hereafter affixed or attached to or installed
in any of the Leased Premises (except as hereafter provided), including all
electrical, anti-pollution, heating, lighting (including hanging fluorescent
lighting), incinerating, power, air cooling, air conditioning, humidification,
sprinkling, plumbing, lifting, cleaning, fire prevention, fine extinguishing and
ventilating Systems, devices and machinery and all engines, pipes, pumps, tanks
(including exchange tanks and fuel storage tanks), motors, conduits, ducts,
steam circulation coils, blowers, steam lines, compressors, oil burners,
boilers, doors, windows, loading platforms, lavatory facilities, stairwells,
fencing (including cyclone fencing), passenger and freight elevators, overhead
cranes and garage units, together with all additions thereto, substitutions
therefor and replacements thereof required or permitted by this Lease, but
excluding all Tenant's Equipment.

                                   EXHIBIT B

<PAGE>

                                                                       EXHIBIT C

                             PERMITTED ENCUMBRANCES

            1. Liens for taxes, assessments or governmental charges or levies
not at the time due and delinquent;

            2. Undetermined or inchoate liens and charges incidental to current
operations which have not at such time been filed pursuant to law against the
Lessee or which relate to obligations not due or delinquent;

            3. Any rights of expropriation, access or use or any other similar
right conferred or reserved by Or in any statute or Canada or Alberta;

            4. Municipal by-laws and regulations affecting the use and occupancy
of the Leased Premises;

            5. Encroachments revealed by the survey of the Leased Premises dated
January 26, 2004 prepared by Global Surveys Corp.; and

            6. Instrument No. 981 367 918 registered against title to a portion
of the Leased Premises on November 24,1998, being & Caveat regarding a lease in
favour of Telus Mobility Inc.

                                   EXHIBIT C
<PAGE>
                                                                 EXHIBIT D

                              BASIC RENT PAYMENTS

     1. Basic Rent.      (a) Initial Term. Subject to the adjustments provided
for in Paragraphs 2, 3 and 4 below, Basic Rent payable in respect of the Initial
Term shall be $692,329.07 per annum, payable quarterly in advance on each Basic
Rent Payment Date, in equal installments of $173,087.27. Pro rata Basic Rent for
the period from the date hereof through the last day of September 2004 shall be
paid on the date hereof.

                         (b) Renewal Term. Annual Basic Rent for the first year
of each Renewal Term shall be an amount equal to the Fair Market Rental Value as
of the first day of the applicable Renewal Term, as determined in accordance
with Paragraph 29 of this Lease, shall be payable in equal quarterly
installments and shall be subject to the adjustments provided for in Paragraphs
2, 3 and 4 below.

     2. CPI Adjustments to Basic Rent. The Basic Rent shall be subject to
adjustment, in the manner hereinafter set forth, for increases in the index
known as Canadian Consumer Price Index for "all items excluding food and energy"
("CPI") or the successor index that most closely approximates the CPI. If the
CPI shall be discontinued with no successor or comparable successor index,
Landlord and Tenant shall attempt to agree upon a substitute index or formula,
but if they are unable to so agree, then the matter shall be determined by
arbitration in accordance with the rules of the Arbitration Act (Alberta). Any
decision or award resulting from such arbitration shall be final and binding
upon Landlord and Tenant and judgment thereon may be entered in any court of
competent jurisdiction. In no event will the Basic Rent as adjusted by the CPI
adjustment be less than the Basic Rent in effect for the one (1) year period
immediately preceding such adjustment.

     3. Effective Dates of CPI Adjustments. Basic Rent shall not be adjusted to
reflect changes in the CPI until September 25, 2005 (the "First Basic Rent
Adjustment Date"). As of the First Basic Rent Adjustment Date and on each
anniversary of the First Basic Rent Adjustment Date thereafter during the
Initial Term and as of the first (1st) anniversary of the first full Basic Rent
payment date of each exercised Renewal Term (each, a "First Basic Rent Renewal
Adjustment Date") and on each anniversary of the First Basic Rent Renewal
Adjustment Date thereafter during such Renewal Term (each such date being
hereinafter referred to as a "Basic Rent Adjustment Date"), Basic Rent shall be
adjusted to reflect increases in the CPI over the CPI used to calculate the most
recent increase in Basic Rent (or, with respect to the first Basic Rent
Adjustment Date during the Initial Term or any Renewal Term, such increases
shall be measured against the CPI as of the first payment date during the
Initial Term or such Renewal Term, as the case may be).

     4. Method of Adjustment for CPI Adjustment.

                         (a) As of each Basic Rent Adjustment Date when the
average CPI determined in clause (i) below exceeds the Beginning CPI (as defined
in this Paragraph 4(a)), the Basic Rent in effect immediately prior to the
applicable Basic Rent Adjustment Date shall be multiplied by a fraction, the
numerator of which shall be the difference between (i) the average CPI for the
three (3) most recent calendar months (the "Prior Months") ending prior to such

                                  EXHIBIT D-1
<PAGE>

                                                                       EXHIBIT D

Basic Rent Adjustment Date for which the CPI has been published on or before the
forty-fifth (45th) day preceding such Basic Rent Adjustment Date and (ii) the
Beginning CPI, and the denominator of which shall be the Beginning CPI. The
product of such multiplication shall be added to the Basic Rent in effect
immediately prior to such Basic Rent Adjustment Date. As used herein, "Beginning
CPI" shall mean the average CPI for the three (3) calendar months corresponding
to the Prior Months, but occurring immediately prior to the effective date of
the most recent increase in Basic Rent (or, with respect to the first Basic Rent
Adjustment Date during the Initial Term or any Renewal Term, occurring
immediately prior to the first payment date during the Initial Term or such
Renewal Term as the case may be). If the average CPI determined in clause (i) is
the same or less than the Beginning CPI, the Basic Rent will remain the same for
the ensuing one (1) year period and the Beginning CPI for the adjustment (but
not any subsequent adjustment) occurring at the end of such ensuing one (1) year
period shall continue to be such Beginning CPI By way of example and for
purposes of clarification, if Basic Rent was $1 and CPI increased by 5%, 3%, and
2%, respectively, over three years. then annual rent for those three years
would be $1,$1, and $1.02 respectively. As a further example, if Basic Rent was
SI and CPI increased by 5%, 6%, and 2%, respectively. over three years, then
annual rent for those three years would be $1, $1.1007, and $1.02704,
respectively.

                  (b) Effective as of a given Basic Rent Adjustment Date, Basic
Rent payable under this Lease until the next succeeding Basic Rent Adjustment
Date shall be the Basic Rent in effect after the adjustment provided for as of
such Basic Rent Adjustment Date.

                  (c) Notice of the new annual basic Rent shall he delivered to
Tenant on or before the tenth (10th) day preceding each Basic Rent Adjustment
Date, but any failure to do so by Landlord shall not be or be deemed to be a
waiver by Landlord of Landlord's rights to collect such sums. Tenant shall pay
to Landlord, within ten (10) Business Days after a notice of the new annual
Basic Rent is delivered to Tenant, all amounts due from Tenant, but unpaid,
because the stated amount as set forth above was not delivered to Tenant at
least ten (10) Business Days preceding the Basic Rent Adjustment Date in
question.

                                  EXHIBIT D-2
<PAGE>

                                                                     EXHIBIT E-1

RECORDING REQUESTED BY AND

AFTER RECORDING, RETURN TO:

GMAC Commercial Mortgage of Canada, Limited

70 York Street, Suite 710

Toronto, ON

M5J 1S9

Attn: Servicing - Executive Vice President

               SPACE ABOVE THIS LINE RESERVED FOR RECORDER'S USE

                         SUBORDINATION, NON-DISTURBANCE

                            AND ATTORNMENT AGREEMENT

      This Subordination, Non-Disturbance and Attornment Agreement
("Agreement"), is made between GMAC COMMERCIAL MORTGAGE OF CANADA, LIMITED, a
corporation formed under the Canada Business Corporations Act (" Lender" ),
___________________________________, a__________________________ ("Tenant") and
_________________________________, a_________________________("Landlord").

      7. Background

                                EXHIBIT E-1 - 1

<PAGE>

                                                                     EXHIBIT E-1

      A. Lender is about to make a loan to Landlord in the original principal
amount $___________________("Loan"), which will be secured by a first priority
charge or mortgage (as modified or extended from time to time, "Security
Instrument") on Landlord's property described more particularly on Exhibit A
attached hereto ("Property").

      B. Tenant has leased a portion of the Property from Landlord pursuant to a
certain lease agreement between Landlord and Tenant dated______________
("Lease").

      C. Tenant has been requested to subordinate its Lease to the Security
Instrument and has agreed to do so on the condition that it is assured of
continued occupancy of its leased space under the terms of the Lease and this
Agreement.

      NOW, THEREFORE, in consideration of the mutual promises of this Agreement,
and intending to be legally bound hereby, the parties hereto agree as follows:

      1.    Subordination. Tenant agrees that the Lease, and all estates,
            options and rights created under the Lease, hereby are subordinated
            and made subject to the lien and effect of the Security Instrument,
            as if the Security Instrument had been executed and recorded prior
            to the Lease.

      2.    Nondisturbance. As long as no Tenant Event of Default exists under
            the Lease no foreclosure, conveyance, or other sale of the Property
            in connection with enforcement of the Security Instrument or
            otherwise in satisfaction of the Loan shall operate to terminate the
            Lease or Tenant's rights thereunder (except as set forth in Section
            3). Provided that (i) Tenant is not in default, after the giving of
            notice and the expiration of all applicable periods of grace or
            cure, under the terms of the Lease and complies with this Agreement
            or (ii) if Tenant is in default, after the giving of notice and the
            expiration of all applicable periods of grace or cure, under the
            terms of the Lease, (x) the period for a Permitted Leasehold
            Mortgagee (as such term is defined in the Lease) to exercise its
            cure rights with respect to such default has not expired in
            accordance with the provisions of Section 35 of the Lease or (y) a
            Permitted Leasehold Mortgagee has performed the obligations of
            Tenant under the Lease and has remedied any such default in
            accordance with the provisions of Section 35 of the Lease, Lender
            agrees that in the event Lender acquires title to the Property by
            reason of a foreclosure. Tenant's possession and occupancy of the
            Property and Tenant's and Permitted Leasehold Mortgagee's rights and
            privileges under the Lease during the term thereof (including any
            renewal term) shall not be disturbed, diminished or interfered with,
            and Lender shall recognize the Lease and Tenant's and Permitted
            Leasehold Mortgagees rights hereunder. Subject to the limitations
            and conditions contained herein, Lender upon foreclosure shall be
            deemed to be Landlord and shall assume the obligations of Landlord
            under the Lease thereafter arising. Lender

                                EXHIBIT E-1 - 2

<PAGE>

                                                                     EXHIBIT E-1

            agrees to execute and deliver at any time and from time to time,
            upon the reasonable request of Tenant or any Permitted Leasehold
            Mortgagee, and at Tenant's or Permitted Leasehold Mortgagee's cost
            and expense, any instrument or certificate in recordable form (and
            otherwise in form reasonably satisfactory to Tenant or Leasehold
            Mortgagee, as applicable) deemed to be necessary of appropriate to
            evidence Tenant's rights to recognition and non-disturbance pursuant
            to this Agreement, provided however, that such instruments or
            certificates shall be on the same terms, covenants and conditions as
            this Agreement.

      3.    Attornment. Tenant agrees to attorn to and recognize as its landlord
            under the Lease each party acquiring legal title to the Property by
            foreclosure, conveyance or other sale in connection with enforcement
            of the Security Instrument of otherwise in satisfaction of the Loan
            ("Successor Owner"). As Successor Owner such party shall perform all
            obligations of the landlord under the Leases arising from and after
            the date title to the Property was transferred to Successor
            Owner. In no event, however, will any Successor Owner be: (a) liable
            for any default, act, or omission of any prior landlord under the
            Lease; (b) subject to any offset or defense which Tenant may have
            against any prior landlord under the Lease; (c) bound by any payment
            of rent or additional rent made by Tenant to Landlord more than 30
            days before the same is due; (d) bound by any modification or
            supplement to the Lease, or waiver of Lease terms, made without
            Lender's written consent thereto; (e) liable for the return of any
            Security deposit or other prepaid charge paid by Tenant under the
            Lease, except to the extent such amounts were delivered to Lender,
            (f) liable or bound by any right of first refusal or option to
            purchase all or any portion or the Property except for the option to
            purchase as set out in Section 37 hereof, subject to the provisions
            of this Agreement; (g) liable for construction or completion of any
            improvements to the Property or as required under the Lease for
            Tenant's use and occupancy (whenever arising): or (h) liable beyond
            its interest in the Property for the payment of any claim or
            indemnification arising under the Lease (whenever arising) including
            any title and casualty insurance proceeds and condemnation awards
            actually paid to Lender. Although the foregoing provisions of this
            Agreement are self-operative, Tenant agrees to execute and deliver
            to Lender or any Successor Owner such further instruments as Lender
            or a Successor Owner may from time to time reasonably request in
            order to confirm this Agreement.

      4.    Lender Opportunity to Cure Landlord Defaults. Tenant agrees that,
            until the Security instrument is released by Lender, it will not
            exercise any remedies under the Lease for Landlord defaults without
            having first given to Lender (a) written notice of the alleged
            Landlord default and (b) the opportunity to cure such default within
            the longer of (i) 30 days after the cure period provided under the
            Lease to Landlord, (ii) 30 days from Landlord's receipt of Tenant's
            notice to Lender of a Landlord default, or (iii) if cure of such
            default requires possession of the Property, 30 days after Lender
            has obtained possession of the Property. Tenant acknowledges that
            Lender is not obligated to cure any Landlord default, but if Lender
            so elects to do so, Tenant agrees to accepts cure by Lender as that
            of Landlord under the Lease and will not exercise any right or
            remedy under the Lease for a Landlord default. Performance rendered
            by Lender on Landlord's behalf is without prejudice to Lender's
            rights against Landlord under the Security Instrument or

                                EXHIBIT E-1 - 3

<PAGE>

                                                                     EXHIBIT E-1

            any other documents executed by Landlord in favor of Lender in
            connection with the Loan.

      5.    Tenant to Pay Rents to Lender upon Notice. Tenant is hereby notified
            that the Security Instrument and the other documents securing Loan
            contain an assignment of the rents due to Landlord pursuant to the
            Lease. In the event that Lender notifies Tenant that there has been
            a default under the Loan and that Lender is entitled to receive the
            rent due Landlord under the Lease, Tenant shall thereafter pay to
            Lender or as directed by Lender all rentals and other monies due or
            to become due to Landlord under the Lease and Landlord expressly
            authorizes Tenant to make such payments to Lender and hereby
            releases and discharges Tenant from any liability to Landlord on
            account of such payments.

      6.    No Amendments. Tenant and Landlord each acknowledge agree that they
            require Lender's consent to any future modification, waiver,
            expansion or renewal (except for expansion or renewal rights
            currently permitted to Tenant by the express terms of the Lease),
            and no modification, waiver, expansion or renewal made without
            Lender's written consent will be enforceable against Lender.

      7.    Termination. Tenant agrees that in the event that Tenant is entitled
            to terminate the Lease pursuant to Section 18 of the Lease, any
            Termination Notice given by Tenant to Landlord shall also be
            delivered to Lender, contemporaneously with delivery to Landlord.

      8.    Permitted Leasehold Mortgagee. Tenant agrees with Landlord and
            Lender that any Permitted Leasehold Mortgagee shall, prior to any
            grant of security by Tenant to the Permitted Leasehold Mortgagee,
            enter into a subordination and non-disturbance agreement
            substantially in the form of this Agreement.

      9.    Miscellaneous.

            (a)   Notices. All notices under this Agreement will be effective
                  only if made in writing and addressed to the address for a
                  party provided below such party's signature. A new notice
                  address may he established from time to time by written notice
                  given in accordance with this Section. All notices will be
                  deemed received only upon actual receipt.

            (b)   Entire Agreement: Modification. This Agreement is the entire
                  agreement between the parties and supersedes all prior
                  discussions, representations and agreements (oral and

                                EXHIBIT E-1 - 4

<PAGE>

                                                                     EXHIBIT E-1

            written) with respect to the subordination nondisturbance of the
            Lease. This Agreement controls any conflict between the terms of
            this Agreement and the Lease. This Agreement may not be modified,
            supplemented or terminated, nor any provision hereof waived, unless
            by written agreement of Lender and Tenant.

            (c)   Binding Effect. This Agreement binds and Inures to the benefit
                  of each party hereto and their respective heirs, executors,
                  legal representatives, successor and assigns, whether by
                  voluntary action of the parties or by operation of law. Upon
                  any safe of the Property by the Lender, the Lender shall
                  obtain the covenant of any purchaser to be bound by the terms
                  hereof and the Lender shall be relieved, of its obligations
                  hereunder.

            (d)   Unenforceability. No determination by any court government
                  body or otherwise that any provision of this Agreement is
                  invalid or unenforceable in any instance affects the validity
                  or enforceability of any other provision or such invalid or
                  unenforceable provision in any circumstance not controlled by
                  such determination. Each invalid or unenforceable provision
                  will be ineffective only to the extent of such invalidity or
                  unenforceability and otherwise construed to the greatest
                  extent possible to accomplish fairly the purposes and
                  intentions of the parties hereto.

            (e)   Governing Law. This Agreement shall be governed by the laws of
                  the province in which the Property is located and the laws of
                  Canada applicable therein.

            (f)   Counterparts. This Agreement may be executed in any number of
                  counterparts, each of which shall be deemed an original and
                  all of which together constitute a fully executed agreement
                  even though all signatures do not appear on the same document.

      IN WITNESS WHEREOF, this Agreement is executed this _______ day
      of __________, 200__.

LENDER:                                 TENANT:

GMAC Commercial Mortgage of Canada, Limited___________________________________

                                EXHIBIT E-1 - 5

<PAGE>

                                                                     EXHIBIT E-1

By:____________________________                 By:______________________

Name:                                           Name:

Title:                                          Title:

LENDER NOTICE ADDRESS:                          TENANT NOTICE ADDRESS:

GMAC Commercial Mortgage of Canada, Limited     _________________________

70 York Street, Suite 710

Toronto, ON

M5J 1S9                                         _________________________

Attn: Servicing - Executive Vice President      Attn:

LANDLORD:

By:____________________________

Name:

Title:

Landlord notice address:

Attach: Notary acknowledgments for each signer.

                                 EXHIBIT E-1 - 6

<PAGE>

                                                                     EXHIBIT E-1

Exhibit A - Legal Description of the Property

                                EXHIBIT E-l - 7
<PAGE>

                                                                     EXHIBIT E-2

                          TENANT ESTOPPEL CERTIFICATE

Tenant Name: CWD WINDOWS AND DOORS, INC.

Landlord Name: PG-NOM (ALBERTA), INC.

Leased Space: _________________________

            Landlord requests Tenant to complete this Certificate for the
benefit of GMAC Commercial Mortgage of Canada, Limited ("Lender") in connection
with a pending loan to be made by Lender that will be secured by a mortgage on
Landlord's property located at ______________ ("Mortgaged Property"). Tenant's
Leased Space is located within the Mortgaged Property. Tenant acknowledges that
its statements made in this Certificate will be relied upon by Lender and may be
enforced against Tenant with respect to Tenant's Lease.

                      8. TENANT STATEMENTS ABOUT ITS LEASE

1.    An accurate and complete copy of Tenant's lease agreement ("Lease") is
      attached as Schedule A. No other agreements (verbal or written) modify or
      supplement the Lease or Tenant's rights with respect to the Leased Space.

2.    Tenant currently is the sole tenant and occupier of the Leased Space.
      Tenant has not entered into any agreement to assign, sublet, encumber, or
      otherwise transfer all or any portion of the Leased Space or the Lease.

3.    The Lease is [__] or is not [__] guaranteed. If guaranteed, the name and
      current address of each guarantor is attached.

4.    No default by Landlord (to Tenant's knowledge) or by Tenant currently
      exists under the Lease. Tenant has no setoffs, credits, claims or defenses
      to Tenant's obligation to pay rent or to enforcement of the Lease.

                                 EXHIBIT E-2-1
<PAGE>
                                                                     EXHIBIT E-2

5.    The current lease term began on _______________ [insert date], and the
      rent commencement date, if different, began on _______________ [insert
      date or "N/A" if not applicable]. The current lease term ends on
      _______________ [insert date]. Tenant has no option to terminate the Lease
      prior to such date, except in accordance with the rights of the Tenant
      pursuant to subsection 18(a) of the Lease.

6.    Tenant has the option to extend the term of the Lease for _______________
      renewal periods [insert number of renewals or "none"]. Each renewal offers
      a term of _______________ [insert term or "N/A" if not applicable]. Tenant
      has not exercised any renewal option as of the date hereof.

7.    Tenant has none of the following rights: Right to expand the Leased
      Spaces; right to relocate the Leased Space; right of first refusal (offer)
      with respect to any other space in the Mortgaged Property; or option or
      right of first refusal (offer) to purchase the Mortgaged Property, except
      for the Tenant's option to purchase set out in Section 37 of the Lease.

8.    Tenant's last payment of base rent in the amount of $_______________
      [insert amount] was paid on _______________ [insert date]. No other
      advance rent has been paid by Tenant.

9.    Tenant has paid Landlord a security deposit in the amount of $ NONE.

10.   There are no rent-free periods or rent concessions provided under the
      Lease and no rent concession will become effective during the remainder of
      the Lease.

11.   There are no tenant improvements to be constructed as a condition to the
      Lease. No damage to the Leased Space exists which has not been repaired to
      Tenant's satisfaction.

12.   No bankruptcy, reorganization, insolvency or similar proceedings under
      any provincial or federal law has been initiated by or against Tenant.

13.   Tenant has all licenses and permits which Tenant must have to operate its
      business from the Leased Space, and all are current and have not been
      revoked.

                                 EXHIBIT E-2-2
<PAGE>
                                                                     EXHIBIT E-2

14.   Since taking possession of the Leased Space, Tenant has not received any
      notice that the Leased Space or Tenant's use of the Leased Space violates
      any applicable law, regulation ordinance or directive of any governmental
      or agency or insurance company.

15.   Since taking possession of the Leased Space, Tenant has not stored,
      generated, manufactured, refined, treated, transported, disposed or in any
      way used materials which are considered hazardous substances or wastes
      under applicable environmental laws and regulations (including, without
      limitation, petroleum or petroleum by-products) at the Leased Space or on
      any other part of the Mortgaged Property, except as in compliance with the
      Lease.

16.   Tenant understands that a condition of the loan from Lender to Landlord
      will require Lender's consent to any future modification, waiver,
      expansion or renewal (except for expansion or renewal rights currently
      permitted to Tenant by the express terms of the Lease), and no
      modification, waiver, expansion or renewal made without Lender's written
      consent will be enforceable against Lender.

17.   Tenant understands that a condition of the loan from Lender to Landlord
      will prohibit Landlord from accepting Tenant's rent more than 30 days
      prior to its due date, and no payment of rent by Tenant more than 30 days
      in advance will be binding on Lender.

18.   Listed below are any exceptions asserted by Tenant to the foregoing
      statements (Lender has no obligation to address Tenant's exceptions in
      connection with the loan):____________________________________________

BY SIGNING BELOW, Tenant certifies that all information stated above is accurate
and correct and does not omit any material fact that would make any statement
false or misleading.

Date:____________________________     By:________________________

                                      Name:

                                      Title:

                                EXHIBIT E-2-3

<PAGE>

                                                                     EXHIBIT E-2

ATTACH: COMPLETE COPY OF LEASE AS SCHEDULE A.

        NAMES AND ADDRESSES OF GUARANTORS, IF ANY.

                                  EXHIBIT E-2-4

<PAGE>

                                                                     EXHIBIT E-2

Landlord signs below to certify to Lender that, to Landlord's knowledge, the
information disclosed by Tenant in the attached Tenant Estoppel Certificate is
accurate and complete and does not omit any material feel that would cause any
statement made by Tenant to be false or misleading.

                                      Landlord:

Date:___________________________      By:______________________________

                                      Name:

                                      Title:

                                EXHIBIT E-2-5

<PAGE>

                                                                       EXHIBIT F

                       TENANT'S POST-CLOSING OBLIGATIONS

      Tenant shall conduct the following actions and provide Landlord with
written confirmation, satisfactory to Landlord, within sixty (60) days of the
Commencement Date (or such other period of time expressly set forth below), that
all of the activities listed in Paragraphs A and B below have been
satisfactorily completed. Tenant shall provide written confirmation,
satisfactory to Landlord, within sixty(60) days of the completion of each
activity identified in Paragraph B below.

A.    ENGINEERING ISSUES

      1.    Replace roof joist in warehouse area of building one.

      2.    Replace skylight on building two.

B.    ENVIRONMENTAL REGULATORY COMPLIANCE ISSUES

      1.    Registration of used oil AST.

      2.    Prepare Spill Prevention and Response Plan.

      3.    Provide evidence that storage of motor oil, isopropyl alcohol and
            used antifreeze currently stored outside have been moved to an
            indoor storage area with secondary containment.

      4.    Provide evidence that the Surfcon material has been moved to a
            heated storage area.

      5.    Provide evidence that the City of Calgary has been contacted and has
            approved the discharge of wastewater from the reverse osmosis waste
            treatment system to the city's POTW.

      6.    Disposal of investigation derived wastes from the investigation of
            the former dip tank.

                                  EXHIBIT F-1

<PAGE>

                                                                       EXHIBIT F

C.    REMEDIATION/INVESTIGATION ISSUES

      1.    Remediate soil and groundwater contamination identified in the
            August 2004 "Environmental Review of Plygem Industries, Inc. and MW
            Manufacturers Inc" report prepared by ENVIRON to applicable CLEANUP
            standards and to the written approval of the applicable
            environmental agency.

                                  EXHIBIT F-2

<PAGE>

                                                                       EXHIBIT F

D.    NOTIFICATION

            Tenant shall provide all communications regarding the Post-Closing
            Obligations specified in Paragraphs B and C of this Exhibit "F
            including Tenant's proof of satisfactory completion of these
            obligations to Landlord addressed to:

                                      Louis A. Naugle, Esquire

                                      Reed Smith LLP

                                      435 Sixth Avenue

                                      Pittsburgh, PA 15219

                                      Telephone: 412-288-8586

                                      Fax: 412-288-3063

                                      E-mail: lnaugle@reedsmith.com

E.    MISCELLANEOUS POST-CLOSING ISSUES

      1.    Make best efforts (with the co-operation of the Landlord as
            required) to obtain encroachment agreements from The City of Calgary
            in respect of those encroachments set out in the Real Property
            Reports concerning the Leased Premises dated January 26, 2004 and
            prepared by Global Surveys Corp.

      2.    Make best efforts to obtain the issuance of development completion
            permits and/or occupancy permits, where same are required by Law
            from The City of Calgary with respect to any buildings, structures
            or improvements on or to the lands comprising the Leased Premises.

      3.    Make best efforts to obtain and register an amendment to the Caveat
            registered as instrument number 981 367 918 against title to a
            portion of the Leased Premises on the 24th day of November, 1998.,
            to set out the correct location of the tower and component rooms as
            shown on the Real Property Report dated January 26, 2004 and
            prepared by Global Surveys Corp..

                                  EXHIBIT F-3

<PAGE>

                                                                       EXHIBIT F

      4.    Obtain from Global Surveys Corp. reliance letters, separately
            addressed to the following, parties in respect of the Real Property
            Reports dated January 26, 2004 concerning the Leases Premises and
            prepared by Global Surveys Corp.:

            i)    GMAC Commercial Mortgage of Canada, Limited, 70 York Street,
                  Suite 710, Toronto, ON, M5J 1S9;

            ii)   PG-NOM (Alberta) Inc., c/o WP Carey & CO. LLC, 2nd Floor, 50
                  Rockefeller Plaza, New York, New York, USA, 10020; and

            iii)  PG-Trustee (Can) QRS 16-10, Inc., c/o WP Carey & Co. LLC, 2nd
                  Floor, 50 Rockefeller Plaza, New York, New York, USA 10020; to
                  the effect that such parties may rely on the Real Property
                  Reports as if each of them was listed as a "client" thereon.

      5.    Tenant shall pay all amounts required to pay in full, and shall
            obtain and register in the South Alberta Land Registry Office, a
            valid discharge of the following encumbrance;

            INSTRUMENT NO.       ENCUMBRANCE             ENCUMBRANCER

               2840JQ             Mortgage         Foster's Garden Chapel Ltd.

            by October 29, 2004 and within five (5) days thereafter to provide
            to FIRST CANADIAN TITLE INSURANCE COMPANY and BLAKE, CASSELS &
            GRAYDON LLP a copy of the registered discharge, together with a
            release of interest in insurance policies duly executed by the
            encumbrancer named above.

                                  EXHIBIT F-4<PAGE>

                                                                  EXHIBIT 10.15

                                     ALBERTA

                                 LAND TITLES ACT

                                MORTGAGE OF LAND

                                       TO

                   GMAC COMMERCIAL MORTGAGE OF CANADA, LIMITED

                                NOVEMBER 24, 2004

<PAGE>
                                                                              2.

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                           <C>
RECITALS....................................................................................   3
  SECTION 1 - DEFINITIONS...................................................................   3
  SECTION 2 - CHARGING AND MORTGAGING PROVISIONS............................................   8
  SECTION 3 - REPAYMENT.....................................................................   8
  SECTION 4 - NO PREPAYMENT.................................................................   9
  SECTION 5 - NO OBLIGATION TO ADVANCE NO MERGER ON REGISTRATION-DISCHARGE-PAYMENT..........  14
  SECTION 6 - PAYMENT UNDER THE CHARGE......................................................  14
  SECTION 7 - INTEREST AFTER DEFAULT........................................................  14
  SECTION 8 - CRIMINAL RATE OF INTEREST.....................................................  15
  SECTION 9 - INTEREST ACT (CANADA).........................................................  15
  SECTION 10 - REPRESENTATIONS AND WARRANTIES...............................................  16
  SECTION 11 - COVENANTS....................................................................  18
  SECTION 12 - TAXES, LIENS, ENCUMBRANCES, ETC..............................................  22
  SECTION 13 - INSURANCE....................................................................  25
  SECTION 14 - IMPROVEMENTS, FIXTURES.......................................................  36
  SECTION 15 - ASSIGNMENT OF RENTS AND LEASES...............................................  36
  SECTION 16 - NOTICE OF ALLEGED DEFAULTS BY LESSOR UNDER LEASES............................  37
  SECTION 17 - MANAGEMENT, REPAIR AND INSPECTIONS...........................................  37
  SECTION 18 - EXPENSES OF OBTAINING AND MAINTAINING SECURITY...............................  38
  SECTION 19 - MAINTENANCE OF CHARGE........................................................  38
  SECTION 20 - ACCELERATION.................................................................  39
  SECTION 21 - REMEDIES ON DEFAULT..........................................................  41
  SECTION 22 - LEASES AND RENTS.............................................................  46
  SECTION 23 - RIGHTS OF CHARGEE SHALL BE SEPARATE - EXTENSIONS.............................  48
  SECTION 24 - NON-TRANSFERABILITY, PARTIAL DISCHARGE AND NO SUBSEQUENT ENCUMBRANCING.......  48
  SECTION 25 - DISCHARGE AND RENEWAL........................................................  52
  SECTION 26 - FINANCIAL DATA...............................................................  52
  SECTION 27 - NO MERGER OR WAIVER OF CHARGEE'S RIGHTS......................................  54
  SECTION 28 - LIMITATIONS ON PERSONAL LIABILITY............................................  54
  SECTION 29 - DISTRESS - ATTORNMENT........................................................  56
  SECTION 30 - CONTINUING SECURITY..........................................................  56
  SECTION 31 - ASSIGNMENT, PLEDGE OR TRANSFER BY CHARGEE...................................   57
  SECTION 32 - NOTICE.......................................................................  58
  SECTION 33 - MISCELLANEOUS................................................................  59
</TABLE>

<PAGE>

                                    MORTGAGE

RECITALS

A. GMAC COMMERCIAL MORTGAGE OF CANADA, LIMITED of 70 York Street, Suite 710,
Toronto, Ontario M5J 1S9 has agreed to make a loan in favour of PG-NOM
(ALBERTA), INC. in the principal amount of Four Million Two Hundred and Fifty
Thousand Canadian Dollars ($4,250,000) upon the terms and conditions more
particularly contained in this Charge;

B. PG-NOM (ALBERTA), INC. is the registered owner of a fee simple interest in
the lands and premises described in Schedule "A" in this Charge;

C. this Charge is given by PG-NOM (ALBERTA), INC. as continuing security for the
repayment to GMAC COMMERCIAL MORTGAGE OF CANADA, LIMITED of the indebtedness and
the performance of certain obligations more particularly contained in this
Charge.

FOR VALUE RECEIVED, the parties agree as follows:

SECTION 1 - DEFINITIONS

1.1 DEFINITIONS. In this Agreement: For the purposes of this Charge the
following definitions will apply:

(1) ACCEPTABLE REPLACEMENT LEASE means a replacement lease for the entire
Charged Premises with an Acceptable Replacement Tenant acceptable to Chargee in
its sole-discretion;

(2) ACCEPTABLE REPLACEMENT TENANT shall mean a single-user tenant acceptable to
Chargor in its sole discretion;

(3) AFFILIATE has the meaning given to it in Section 24.4 of this Charge;

(4) BILLS has the meaning given to it in Section 12.1(1) of this Charge;

(5) BUSINESS DAY means a day on which the Chargee is open for business but
specifically excluding in all cases Saturday, Sunday or a statutory holiday
pursuant to the laws of Canada or Alberta;

(6) CASUALTY CONSULTANT has the meaning given to it in Section 13.4(1) of this
Charge;

(7) CASUALTY RETAINAGE has the meaning given to it in Section 13.4(4)(c);

(8) CHARGE means this Mortgage of Land and all instruments supplemental to this
Mortgage of Land or in amendment or confirmation of this Mortgage of Land;

(9) CHARGED PREMISES means the Lands and the Improvements, Leases, Rents,
Equipment, Expropriation awards, insurance proceeds and proceeds of tax appeals;

(10) CHARGEE means GMAC Commercial Mortgage of Canada, Limited of 70 York
Street, Suite 710, Toronto, Ontario M5J 1S9 and its successors and assigns;

<PAGE>
                                                                              4.

(11) CHARGOR means PG-NOM (ALBERTA), INC. and its successors and assigns;

(12) CLOSED PERIOD EXPIRATION DATE has the meaning given to it in Section
4.2(2)(a) of this Charge;

(13) COMMITMENT LETTER has the meaning given to it in Section 5.1 of this
Charge;

(14) DEFEASANCE has the meaning given to it in Section 4.2(2)(a) of this Charge;

(15) DEFEASANCE COLLATERAL has the meaning given to it in Section 4.2(2)(c)(i)
of this Charge;

(16) DEFEASANCE SECURITY AGREEMENT has the meaning given to it in Section
4.2(2)(b)(vi) of this Charge;

(17) DISBURSEMENT DATE has the meaning given to it in Section 3.1 of this
Charge;

(18) DISCHARGE has the meaning given to it in Section 4.2(2) of this Charge;

(19) DISCHARGE DATE has the meaning given to it in Section 4.2(2)(b)(i) of this
Charge;

(20) DISCHARGE INSTRUMENTS has the meaning given to it in Section 4.2(2)(b)(xi);

(21) ENVIRONMENTAL INDEMNITY AGREEMENT means that certain environmental
indemnity agreement from the Chargor in favour of the Chargee dated as of the
date of this Charge;

(22) ENVIRONMENTAL REPORT has the meaning ascribed to it in the Environmental
Indemnity Agreement;

(23) EQUIPMENT means all machinery, equipment, fittings, apparatus, appliances,
furniture, furnishings, tools, chattels, fixtures (including all heating, air
conditioning, ventilating, waste disposal, sprinklers and fire and theft
protection equipment, plumbing, lighting, communications and elevator fixtures)
and other similar property of every kind and nature whatsoever which are (i) now
or hereafter located upon or used in connection with Lands or the Improvements
or appurtenant thereto, and (ii) in which the Chargor has or shall have an
ownership interest;

(24) EQUITY INTEREST means (a) a partnership interest in an entity which is a
partnership or (b) a shareholder interest in an entity which is a corporation;

(25) EVENT OF DEFAULT has the meaning given to it in Section 20.1 of this
Charge;

(26) EVENT OF INSOLVENCY means, with respect to the Chargor, the occurrence of
any one of the following events:

      (a)   If the Chargor shall, other than as expressly permitted hereby:

            (i)   be wound up, dissolved or liquidated, whether pursuant to the
                  provisions of the laws of the Province of Alberta or the laws
                  of Canada applicable thereto, or any other law or otherwise,
                  or becomes subject to the provisions of the

<PAGE>
                                                                              5.

                  Winding-Up and Restructuring Act (Canada), or has its
                  existence terminated or has any resolution passed therefor; or

            (ii)  makes a general assignment for the benefit of its creditors or
                  a proposal under the Bankruptcy and Insolvency Act (Canada),
                  shall otherwise acknowledge its insolvency or shall be
                  declared or become bankrupt or insolvent; or

            (iii) proposes a compromise or arrangement under the Companies'
                  Creditors Arrangement Act (Canada) or shall file any petition
                  or answer seeking any re-organization, arrangement,
                  composition, re-adjustment, liquidation, dissolution or any
                  other relief for itself under any future Bankruptcy and
                  Insolvency Act (Canada) or any other present or future law
                  relative to bankruptcy, insolvency or other relief for debtors
                  or for the benefit of creditors; or

            (iv)  be unable, for any reason, to pay its trade creditors within
                  one hundred and twenty (120) days of the rendering of trade
                  accounts; or

      (b)   If a court of competent jurisdiction shall enter an order, judgment
            or decree against the Chargor in respect of any re-organization,
            arrangement, composition, re-adjustment, liquidation, dissolution,
            winding-up, termination of existence, declaration of bankruptcy or
            insolvency, or similar relief under any present or future law
            relating to companies' bankruptcy, insolvency or other relief for or
            against debtors, and the Chargor shall acquiesce in the entry of
            such order, judgement or decree or such order, judgement or decree
            shall remain unvacated and unstayed; or if any trustee in
            bankruptcy, receiver, receiver and manager, monitor or liquidator or
            any other officer with similar powers shall be appointed for the
            Charged Premises or any portion thereof, or for the Chargor or for
            all or any substantial part of its property or its respective
            interest in the Charged Premises with the consent or acquiescence of
            the Chargor or such appointment shall remain unvacated and unstayed;
            or

      (c)   If, other than as expressly permitted hereby, an encumbrancer or the
            holder of any lien or charge or any other creditor takes possession
            of the Charged Premises or the interest of the Chargor in the
            Charged Premises, or any part thereof, or if a distress or execution
            or any similar process be levied or enforced upon or against the
            same;

(27) GOVERNMENT OF CANADA BOND YIELD has the meaning given to it in Section
21.1(3) of this Charge;

(28) GAAP means generally accepted accounting principles which are in effect in
Canada at the time the expression is applied;

(29) GUARANTOR means Corporate Property Associates 16 - Global Incorporated, who
is executing a guarantee in favour of the Chargee as guarantor and an
environmental indemnity as indemnitor;

(30) IMPROVEMENTS means the buildings, structures and improvements now located
on the Lands and all appurtenances pertaining thereto, together with all other
buildings, structures and improvements hereinafter located from time to time in,
on or under the Lands together with all personal property, Equipment and
chattels now or hereafter affixed to the Lands and buildings

<PAGE>
                                                                              6.

thereon (excluding rental equipment and all personal property, equipment and
chattels owned by lessees of the Lands);

(31) INSURANCE ESCROW FUND has the meaning given to it in Section 13.1(1) of
this Charge;

(32) INSURANCE ESCROW PAYMENTS has the meaning given to it in Section 13.1(1) of
this Charge;

(33) INTEREST ADJUSTMENT DATE means December 1, 2004;

(34) INTEREST RATE means the rate of <>% per annum, which interest shall be
calculated at such rate semi-annually, not in advance, both before and after
maturity, demand, default and judgment;

(35) INVESTOR has the meaning given to it in Section 31.1 of this Charge;

(36) LANDS means the Chargor's fee simple interest in the lands and premises
described in Schedule "A" of this Charge, including all tenements, hereditaments
and appurtenances thereto belonging or in any way appertaining, and the
reversion or reversions, remainder and remainders, rents, issues and profits
therefrom, and all the estate, right, title, interest, property claim and demand
whatsoever of the Chargor, of, in and to the same and of, in and to every part
thereof;

(37) LEASES means all leases, offers to lease, subleases, licenses and other
contracts and agreements which now or hereafter affect the use, enjoyment or
occupancy of the Charged Premises or any portion thereof, now or hereafter
entered into together with all credits, rights, options, claims, causes of
action, guarantees, indemnities, security deposits and other security held by or
on behalf of the Chargor in connection therewith;

(38) LOAN means the loan in the aggregate principal amount of Four Million Two
Hundred and Fifty Thousand ($4,250,000) of lawful money of Canada extended or to
be extended by the Chargee to the Chargor to be secured by this Charge and other
security given by the Chargor to the Chargee;

(39) MAJOR LEASE has the meaning given to it in Section 22(4) of this Charge;

(40) MATURITY DATE means, subject to early maturity by reason of the occurrence
of an Event of Default and the acceleration of the repayment date of the Loan at
the option of the Chargee, December 1, 2014;

(41) NET PROCEEDS has the meaning given to it in Section 13.4(2);

(42) NET PROCEEDS DEFICIENCY has the meaning given to it in Section 13.4(2) of
this Charge;

(43) NET WORTH means, as of a given date, a Person's equity calculated in
conformance with GAAP by subtracting total liabilities from total tangible
assets;

(44) NET WORTH REQUIREMENT means collectively (x) an aggregate minimum Net Worth
 of not less than Twenty-Five Million USD ($25,000,000 USD) and (y) aggregate
 cash and/or marketable securities (which for purposes hereof shall include,
 without limitation, short term investments of less than one year) equal to or
 greater than Five Hundred Thousand USD ($500,000 USD);

(45) PARTICIPATIONS has the meaning given to it in Section 31.1 of this Charge;

<PAGE>
                                                                              7.

(46) PAYMENT DATE has the meaning given to it in Section 3.1 of this Charge;

(47) PERMITTED ENCUMBRANCES means those encumbrances, liens and interests
affecting the Charged Premises if any which are set forth in Schedule "B"
attached hereto;

(48) PERSON means an individual, partnership, limited partnership, limited
liability partnership, corporation, business trust, joint stock company, trust,
unincorporated association, joint venture, governmental authority or other
entity of whatever nature;

(49) PLY GEM LEASE means the lease of the Lands between PG-NOM (ALBERTA), INC.,
as landlord, and CWD WINDOWS AND DOORS, INC., as tenant, dated August 27, 2004;

(50) PRINCIPAL OR PRINCIPAL SUM has the meaning given to it in Section 3.1 of
this Charge;

(51) RATING AGENCY has the meaning given to it in Section 4.2(2)(b)(ix) of this
Charge;

(52) RECEIVER has the meaning given to it in Section 21.1(9) in this Charge;

(53) RENTS means all revenues, receipts, income, credits, deposits, profits,
royalties, rents, additional rents, recoveries, accounts receivable and other
receivables of any kind and nature whatsoever arising from or relating to the
Charges Premises;

(54) RESTORATION has the meaning given to it in Section 13.4(1) of this Charge;

(55) RESTORATION THRESHOLD has the meaning given to it in Section 13.4(2) of
this Charge;

(56) SCHEDULED DEBT PAYMENT has the meaning given to it in Section 4.2(2)(c)(i)
of this Charge;

(57) SECURITIES has the meaning given to it in Section 31.1 in this Charge;

(58) SECURITIZATION has the meaning given to it in Section 31.1 of this Charge;

(59) SECURITY means collectively, all further or collateral security, other than
this Charge, given by the Chargor or others to the Chargee as security for the
Loan and includes the Commitment Letter;

(60) SUCCESSOR CHARGOR has the meaning given to it in Section 4.2(3) of this
Charge;

(61) TAX ESCROW FUND has the meaning given to it in Section 12.1(1) of this
Charge;

(62) TAXES means for each year during the term of this Charge all real property
taxes, business taxes, rates, duties, charges, assessments, impositions, taxes,
levies and charges for local improvements or otherwise, imposed upon or assessed
against the Charged Premises or any part or parts thereof by any federal,
provincial, metropolitan or municipal government, agency or commission
including, without limitation, school boards, and paid or payable by the
Chargor, but shall not include franchise, capital levy or transfer tax or any
income, excess profits or revenue tax or any other tax or impost of a personal
nature charged or levied upon the Chargor. If the system of real property
taxation or business taxation shall be altered or varied and any new tax shall
be levied or imposed on all or any portion of the Charged Premises or the
revenues therefrom in substitution for,

<PAGE>
                                                                              8.

or in addition to, taxes presently levied or imposed, then any such new tax or
levy shall be deemed to be and shall be included herein;

(63) TERM means the term of this Charge and being a period which expires on the
Maturity Date;

(64) UNDERTAKING means any undertaking of even date given by the Chargor and any
beneficial owner to the Chargee in connection with certain outstanding matters
in respect of the Loan as set out in the Undertaking;

(65) USD means United States of America Dollars;

(66) W.P. CAREY PARENT has the meaning given to it in Section 24.3 of this
Charge.

SECTION 2 - CHARGING AND MORTGAGING PROVISIONS

2.1 Now therefore witnesseth that the Chargor, being the registered owner of a
fee simple interest in the Lands, in consideration of the principal sum of Four
Million Two Hundred and Fifty Thousand Dollars ($4,250,000) of lawful money of
Canada to be loaned by the Chargee to the Chargor or for its benefit, and as
security for the repayment of all monies owing by and the performance of the
obligations of the Chargor hereunder does hereby grant, mortgage, charge and
create a security interest in, to and in favour of the Chargee all of its
estate, right, title and interest in and to the Charged Premises and covenants
and agrees to and with the Chargee as hereinafter provided.

2.2 The last day of any term reserved by any Leases, verbal or written, or any
agreement therefor, now held or hereafter acquired by the Chargor is hereby
excepted out of the Charge granted hereby and the same shall be deemed to be a
charge by way of sublease provided that the Chargor shall stand possessed of
such last day in trust for the benefit of the Chargee. The Chargor shall assign
and dispose of the same in such manner as the Chargee may from time to time
direct in writing without cost or expense to the Chargee. Upon any sale,
assignment, sublease or other disposition of such Leases, the Chargee shall, for
the purpose of vesting the aforesaid residue of any such term in any purchaser,
assignee, sublessee or such other acquirer of the Leases or any interest
therein, be entitled by deed or other written instrument to assign to such other
person, the aforesaid residue of any such term in place of the Chargor and to
vest the same freed and discharged from any obligation whatsoever respecting the
same.

2.3 Chargor hereby pledges to the Chargee and grants to the Chargee, a security
interest in any and all monies now or hereafter held by the Chargee including,
without limitation, any sums deposited in the Tax Escrow Fund and the Insurance
Escrow Fund.

SECTION 3 - REPAYMENT

3.1 The Chargor will pay to or to the order of the Chargee at its offices as set
out in Section 32 hereof or at such other address in Canada as the Chargee may
from time to time designate in writing, without set-off, compensation or
deduction, and without deduction for bank service or any other charges, the
principal sum of Four Million Two Hundred and Fifty Thousand Dollars
($4,250,000), in lawful money of Canada (which amount or that portion thereof
which from time to time remains outstanding is sometimes hereafter referred to
as the "Principal" or "Principal Sum"), together with interest thereon
calculated at the Interest Rate, as well after as before maturity and both
before and after default and judgment, such interest at the

<PAGE>
                                                                              9.

Interest Rate computed from the date of advance (the "Disbursement Date") to the
last day of the month in which the Disbursement Date occurs, to be due and be
paid on the Disbursement Date and thereafter to be paid in equal consecutive
monthly instalments of blended principal and interest, commencing on the first
(1st) day of the first month following the Interest Adjustment Date and
continuing on the first (1st) day of each successive calendar month in each and
every year thereafter (each successive date for payment being hereafter referred
to as the "Payment Date"), to and including the first day of December, 2014 each
such instalment to be in the amount set out below and the last instalment to be
in the amount of the then remaining balance of the Principal Sum and accrued
interest thereon and any other amounts then unpaid and hereby secured to be paid
on the Maturity Date. Blended monthly payments of principal and interest in
respect of the Loan shall be made in an amount of $<>.

3.2 The Chargor acknowledges and agrees that monthly payments for Principal and
interest together with all payments for Taxes and Insurance Escrow Payments must
pass through a single bank account (in an institution whose accounts are insured
by the Canadian Deposit Insurance Corporation) on which the Chargor will have
pre-authorized the Chargee to withdraw the monthly payments under this Charge
plus any Taxes and Insurance Escrow Payments payable in respect of the Charged
Premises if not otherwise paid by the Chargor.

3.3 It is hereby agreed that in case default should be made in payment of any
sum to become due at any time appointed for payment thereof as herein provided,
compound interest at the Interest Rate shall be payable and the sum in arrears
from time to time, as well after as before maturity, shall bear interest
applicable for such sum, and in case interest as compounded is not paid within
one (1) month from the time of default a rest shall be made, and compound
interest at the Interest Rate for such sum shall be payable on the aggregate
then due, as well after as before maturity, both before and after default and
judgement and so on from time to time and all such interest and compound
interest shall be a charge on the Charged Premises.

3.4 The Chargor acknowledges and agrees that all monthly payments of principal
and interest pursuant to Section 3 shall be made to and received by the Chargee
prior to 3:00 p.m. Calgary, Alberta time on the date due, failing which such
payment shall be deemed received on the next succeeding Business Day provided
that in such case, such extension of time shall be included for the purposes of
computation of interest; provided further that in the event any payment is due
on a day which is not a Business Day, it shall be payable prior to 3:00 p.m.
Calgary, Alberta time on the next succeeding Business Day and provided such
payment is received by such date and such time, then interest shall not be
charged for such extension.

3.5 The Chargor acknowledges and agrees that all payments of principal on the
Maturity Date made pursuant to Section 3 or otherwise required under this Charge
shall be made to and received by the Chargee prior to 3:00 p.m. Calgary, Alberta
time on the date due or the next succeeding Business Day in the event the date
due is not a Business Day; provided such extension of time shall be included for
the purposes of computation of interest.

SECTION 4 - NO PREPAYMENT

4.1 Subject only to early maturity by reason of the occurrence of an Event of
Default and the acceleration of the repayment of the Loan at the option of the
Chargee, the Chargor shall not be

<PAGE>
                                                                             10.

entitled to prepay all or any portion of the indebtedness evidenced by the Loan
or this Charge prior to the Maturity Date. Notwithstanding any contrary
provision of this Charge, Chargee may at any time apply proceeds from a
Termination Amount (as defined in the Ply Gem Lease or an Acceptable Replacement
Lease), a casualty or expropriation to Principal, provided that any such
application shall not be subject to any prepayment penalty.

4.2 Loan Repayment and Defeasance.

(1) REPAYMENT. Chargor shall repay any outstanding principal indebtedness of the
Loan in full on the Maturity Date, together with all accrued and unpaid interest
to (but excluding) the date of repayment. Other than as set forth in Section 4.1
or this Section 4.2, or as required or permitted pursuant hereto in connection
with a casualty or expropriation, Chargor shall have no right to prepay all or
any portion of the indebtedness evidenced by the Loan.

(2)   Voluntary Defeasance of the Loan.

      (a)   Defeasance to Discharge Charged Premises from Charge. Subject to
            Chargor's compliance with all terms and conditions of this Section
            4.2(2) to Chargee's reasonable satisfaction, and provided that no
            Event of Default exists under this Charge, Chargor may defease the
            Loan in the manner hereafter set forth ("Defeasance") on any
            Business Day after the Closed Period Expiration Date and obtain a
            discharge ("Discharge") of the Charged Premises from this Charge.
            Once Defeasance has been completed, the Loan will be secured by the
            Defeasance Collateral (defined below), and thereafter the Loan
            cannot be the subject of any further Defeasance, nor prepaid in
            whole or in part notwithstanding any provision of Section 4.2 to the
            contrary. "Closed Period Expiration Date" means the date that is one
            year after the first Payment Date of the Charge.

      (b)   Conditions to Defeasance. Prior to Chargee's delivery of a
            Discharge, each of the following conditions must be fulfilled to the
            satisfaction of Chargee:

            (i)   Chargor shall have provided not more than ninety (90) days
                  notice nor less than forty-five (45) days prior written notice
                  to Chargee requesting Defeasance and identifying the date upon
                  which it desires to obtain a Discharge ("Discharge Date").

            (ii)  Chargor shall have paid on or prior to the Discharge Date all
                  accrued and unpaid interest, and all other sums due under this
                  Charge, up to and including amounts due with respect to the
                  Discharge Date.

            (iii) The proposed Defeasance Collateral is owned by Chargor free
                  and clear of all liens and claims of third parties, and meets
                  the requirements of Subsection 4.2(2)(c) below.

            (iv)  The Chargor is, and after Defeasance shall remain, a
                  single-purpose, bankruptcy-remote entity which owns no real or
                  personal property other than the Defeasance Collateral and
                  owes no indebtedness other than the Loan.

<PAGE>
                                                                             11.

            (v)   Chargor shall have delivered to Chargee a written
                  certification satisfactory to Chargee in form and substance,
                  given by an independent certified public accountant hired by
                  Chargor (which accountant shall be reasonably satisfactory to
                  Chargee and any applicable Rating Agency (hereinafter
                  defined)) certifying that the Defeasance Collateral
                  (hereinafter defined) is sufficient to pay in full each of the
                  Scheduled Debt Payments (hereinafter defined) required to be
                  paid under this Charge, including full payment of the unpaid
                  Principal due on the Maturity Date.

            (vi)  Chargor shall have executed and delivered to Chargee a pledge
                  and security agreement satisfactory to Chargee pledging the
                  Defeasance Collateral and creating a first priority lien on
                  the Defeasance Collateral ("Defeasance Security Agreement").
                  Unless otherwise agreed in writing by Chargee, the pledge of
                  the Defeasance Collateral shall be effectuated through the
                  book-entry facilities of a qualified securities intermediary
                  or designated by Chargee (which may be Chargee itself or an
                  affiliate of Chargee if such party qualifies as a securities
                  intermediary or has an account with such a qualified
                  securities intermediary) in conformity with all applicable
                  provincial and federal laws governing book-entry facilities
                  and security interests in book-entry securities.

            (vii) Chargee's custodian designated to hold the Defeasance
                  Collateral shall have confirmed in writing, by issuing its
                  customary confirmation to Chargee, that it has received all of
                  the Defeasance Collateral by book entry and holds such
                  Defeasance Collateral for the account and benefit of Chargee.

            (viii) Chargor shall have delivered to Chargee a legal opinion in
                  form and substance satisfactory to Chargee given by Chargor's
                  counsel (which counsel shall be reasonably acceptable to
                  Chargee) stating (A) that the Defeasance Collateral and the
                  proceeds thereof have been duly and validly assigned and
                  delivered to Chargee and that Chargee has a valid, perfected,
                  first priority lien and security interest in the Defeasance
                  Collateral and the proceeds thereof; (B) that the Defeasance
                  Security Agreement has been duly authorized and executed and
                  is enforceable against Chargor in accordance with its terms;
                  and (C) if the Chargor has exercised its rights under Section
                  4.2 to create a Successor Chargor, (1) the Successor Chargor
                  is duly formed, validly existing and in good standing, (2) the
                  assignment and assumption agreement between Chargor and
                  Successor Chargor has been duly authorized and is enforceable
                  against each party in accordance with its terms, and (3) such
                  other matters as Chargee shall reasonably require.

            (ix)  Chargee shall have obtained written confirmation from each
                  rating agency identified by Chargee ("Rating Agency") that has
                  rated the securities issued with respect to the Loan that the
                  Defeasance will not result in a

<PAGE>
                                                                             12.

                  withdrawal, downgrade or qualification of the then current
                  ratings issued by such Rating Agency with respect to the
                  securities.

            (x)   Chargor shall have delivered to Chargee a written
                  certification from a duly authorized officer or principal of
                  Chargor which confirms to Chargee (A) the unpaid principal
                  balance of the Loan as of the Discharge Date; (B) that no
                  Event of Default then exists and no condition currently exists
                  which would constitute an Event of Default with the giving of
                  notice or expiration of any applicable grace or cure period or
                  both; (C) that Chargor claims no offsets or defenses to
                  payment of the Loan; (D) that Chargor or Successor Chargor
                  (defined below), as the case may be, satisfies the "single
                  purpose entity" requirements of this Charge; and (E) that the
                  Discharge Instruments (hereinafter defined) are in compliance
                  with the requirements of this Charge and will effect such
                  releases in accordance with the terms of this Charge.

            (xi)  Chargor shall have delivered to Chargee, not less than fifteen
                  (15) days prior to the Discharge Date, forms of all documents
                  necessary to release the Property from the liens created by
                  this Charge and related Personal Property Security Act
                  (Alberta) change or discharge statements (collectively,
                  "Discharge Instruments"), each in appropriate form required by
                  the province in which the Charged Premises are located, and
                  otherwise reasonably acceptable to Chargee.

            (xii) Chargor shall have delivered such other certificates,
                  documents or instruments as Chargee deems reasonably necessary
                  or desirable in connection with the pledge and delivery of
                  Defeasance Collateral or otherwise in connection with the
                  Defeasance or the Discharge, each of which shall be in form
                  and substance satisfactory to Chargee.

      (c)   Purchase and Ownership of the Defeasance Collateral.

            (i)   The "Defeasance Collateral" shall consist of direct,
                  non-callable and non-redeemable obligations of the Government
                  of Canada that provide for payments prior, but as close as
                  possible, to all successive Payment Dates occurring after the
                  Discharge Date, with each such payment being equal to or
                  greater than (but as close as possible to) the amount of the
                  corresponding scheduled payments due under this Charge for the
                  balance of the term of this Charge including, without
                  limitation, scheduled payments of interest, principal, and
                  servicing fees, if any, and full payment due on the Maturity
                  Date (each, a "Scheduled Debt Payment" and collectively,
                  "Scheduled Debt Payments"). Furthermore, the Defeasance
                  Collateral shall be arranged such that redemption payments
                  received from the Defeasance Collateral are paid directly to
                  Chargee to be applied on account of Scheduled Debt Payments.

<PAGE>
                                                                             13.

            (ii)  Chargee agrees that all payments received upon maturity of the
                  Defeasance Collateral shall be applied by Chargee on account
                  of the Scheduled Debt Payments and that any excess received by
                  Chargee from the maturity proceeds of the Defeasance
                  Collateral over the corresponding Scheduled Debt Payment shall
                  be refunded to Chargor promptly after each Payment Date. If,
                  however, the Defeasance Collateral has been purchased with
                  maturities other than on a monthly basis, Chargee shall have
                  the right to hold the maturity proceeds in an escrow account
                  and apply amounts therefrom to make the corresponding
                  Scheduled Debt Payments as they fall due, with any excess
                  refunded to Chargor promptly after the Payment Date last
                  covered by such maturity proceeds.

(3) Successor Chargor Option. To meet the single-purpose, bankruptcy remote
entity condition to Defeasance, Chargor, at Chargor's expense, shall have the
right to designate a successor entity ("Successor Chargor") that satisfies
Chargee's then- current requirements for a single-purpose, bankruptcy-remote
entity to assume all of Chargor's obligations with respect to the Loan and the
Defeasance Security Agreement in connection with the Defeasance. If a Successor
Chargor shall be created, (i) Chargor shall transfer and assign to Successor
Chargor all obligations, rights and liabilities under the Loan, the Defeasance
Security Agreement and any other Security which survive discharge of the Charge,
together with all of Chargor's right, title and interest in the Defeasance
Collateral, and (ii) Successor Chargor shall accept same and assume all of such
obligations; provided, however, that Chargor and Successor Chargor jointly and
severally shall be liable for all obligations under the Charge or Other Loan
Documents which survive the discharge of the Charge. Such assumption and
transfer shall be evidenced by a duly executed written agreement in form and
substance satisfactory to Chargee, whereupon Chargor, except as provided in the
preceding sentence and subject to satisfaction of all other requirements of this
Section 4.2, shall be relieved from its obligations under this Charge.
Notwithstanding anything in this Charge to the contrary, no assumption or
transfer fee shall be payable upon a transfer of this Charge in accordance with
this Section 4.2.

(4) Defeasance Costs and Expenses. Chargor shall pay all reasonable costs or
expenses incurred by Chargee in connection with the Defeasance of the Loan prior
to Chargee's issuance of the Discharge and whether or not Defeasance is
consummated. Such expenses include, without limitation, the reasonable fees and
disbursements of Chargee's legal counsel and loan servicer for review of
Chargor's compliance with the requirements for Defeasance and in connection with
any Successor Chargor; preparation of the Defeasance and Discharge
documentation; all fees charged by Rating Agencies to issue a "no downgrade"
letter; all reasonable broker fees and other reasonable transaction costs in
connection with the purchase of the Defeasance Collateral; all fees charged by
the securities intermediary in connection with the book-entry recordation of
ownership and Chargee's security interest; cost of the accounting certification;
recording of the Discharge and Personal Property Security Act (Alberta) change
or discharge statements; any revenue, documentary stamp or intangible taxes or
any other tax or charge due in connection with the Defeasance. In addition to
the foregoing fee, Chargee reserves a right to charge a review and processing
fee for the internal costs which Chargee will incur to process Chargor's request
for Defeasance and review Chargor's compliance with the requirements hereof.
Chargee also reserves the right to require that Chargor post a deposit to cover
such Defeasance costs which Chargee reasonably anticipates will be incurred as a

<PAGE>
                                                                             14.

condition to processing Chargor's request for Defeasance; but the posting of any
deposit shall not excuse Chargor's liability for all expenses as contemplated by
this paragraph.

(5) Discharge of the Property. Upon Chargor's compliance with all of the
conditions to Defeasance set forth in this Section 4.2, Chargee shall execute
the Discharge.

SECTION 5 - NO OBLIGATION TO ADVANCE NO MERGER ON REGISTRATION-DISCHARGE-PAYMENT

5.1 The Chargor acknowledges and agrees that the Chargee is not bound to make
any advance of any of the Principal Sum or any unadvanced part thereof by reason
of the registration of this Charge in any place or registry office or the
advance of any part of the said Principal Sum it being acknowledged by the
Chargor that any advance hereunder is subject, inter alia, to: (i) the
representations and warranties contained herein being true and correct as of the
date of any advance; (ii) no default having occurred hereunder, under any of the
Security or under the letter agreement between the Chargee and the Chargor dated
October 8, 2004 (the "Commitment Letter"); and (iii) the conditions precedent
contained in the Commitment Letter having been satisfied.

5.2 In the event this Charge is registered and either no advance whatsoever is
made hereunder by the Chargee or the Chargor's ability to draw down funds is
terminated by the Chargee before any funds are advanced, the Chargee will at the
expense of the Chargor and upon payment of all monies, costs, fees and
disbursements then due to the Chargee promptly upon request by the Chargor
execute and deliver to the Chargor, or any agent thereof, registerable
discharges of this Charge and of the Security, for use in every registry office
where they or notices thereof will have been registered or filed; provided that
the Chargor acknowledges that this Section 5.2 shall be of no effect once any
advance of the funds is made hereunder by the Chargee.

SECTION 6 - PAYMENT UNDER THE CHARGE

6.1 Payments of principal and interest made under and pursuant to the terms of
the Security shall constitute payment hereunder and vice versa and default in
the payment of principal and interest under the Security shall constitute
default hereunder and vice versa. Default in compliance with any of the
conditions, covenants, undertakings, provisions and stipulations contained in
the Security shall constitute default hereunder and shall, subject to the
provisions hereof, entitle the Chargee to exercise whatever rights or remedies
are provided for herein and conversely default in payment hereunder or in
compliance with any of the conditions, covenants, undertakings, provisions and
stipulations contained herein shall constitute default under the Security and
entitle the Chargee to exercise whatever rights or remedies as may be provided
for in the Security. In the event of a conflict between the terms of a document
forming part of the Security and this Charge, then the terms of this Charge
shall govern.

SECTION 7 - INTEREST AFTER DEFAULT

7.1 All interest in arrears shall be treated forthwith (as to payment of
interest thereon) as Principal and shall bear compound interest, as well after
as before maturity, default and judgement as provided in Section 3.3 hereof.

<PAGE>
                                                                             15.

7.2 After default in payment of any instalment of Principal or interest, the
Chargor will pay interest, including interest on overdue interest, at the
Interest Rate on the same, and any payment by the Chargor shall be applied by
the Chargee first on account of interest and then on account of Principal.

SECTION 8 - CRIMINAL RATE OF INTEREST

8.1 The Chargor acknowledges and agrees that the payment of interest and further
consideration to the Chargee is a fair payment based on the business terms of
the Loan. The Chargor and the Chargee acknowledge and agree that it is their
express intention and desire that in no event shall the total payment to the
Chargee whether for interest, fees, bonus, additional consideration or otherwise
exceed the maximum payment permitted under Section 347 of the Criminal Code
(Canada), as amended, or any provision enacted in replacement therefor, and the
parties further acknowledge and agree that notwithstanding any other terms or
conditions of this Charge or any additional security documents or agreements,
the interest payable on the credit advanced under this Charge (as "interest" and
"credit advanced" are defined in Section 347 of the Criminal Code (Canada), as
amended, or any provision enacted in replacement therefor), shall not exceed an
effective annual rate of interest of sixty (60%) percent calculated in
accordance with generally accepted actuarial practices and principles. In the
event that the Chargor would, but for this clause, be obligated to pay interest
on the credit advanced under this Charge at a criminal rate (as "interest",
"credit advanced" and "criminal rate" are defined in Section 347 of the Criminal
Code (Canada), as amended, or any provision enacted in replacement therefor),
the interest rate on the credit advanced hereunder shall be reduced to an
effective annual rate of sixty (60%) percent, calculated in accordance with
generally accepted actuarial practices and principles, firstly by reducing to
the extent necessary the amount of any bonus payable hereunder, secondly (if
required) by reducing to the extent necessary the amount of any fees or other
consideration other than interest payable hereunder, and thirdly (if required)
by reducing to the extent necessary the Interest Rate. In the event that the
Chargor has paid to the Chargee interest at a criminal rate on the credit
advanced under this Charge (as "interest", "credit advanced" and "criminal rate"
are defined in Section 347 of the Criminal Code (Canada), as amended, or any
provision enacted in replacement therefor), the Chargee shall at the request of
the Chargor refund to the Chargor an amount equal to the amount by which such
interest exceeds the criminal rate. The provisions of this Charge shall be
modified and are deemed to be modified to the extent necessary to effect the
foregoing.

SECTION 9 - INTEREST ACT (CANADA)

9.1 For the purposes of this Charge, whenever interest is calculated on the
basis of a year less than the actual number of days in a calendar year, each
rate of interest determined pursuant to such calculation expressed as an annual
rate for the purpose of the Interest Act (Canada) is equivalent to such rate so
determined multiplied by the actual number of days in the calendar year in which
the same is to be ascertained and divided by the number of days used as the
basis of such calculation.

<PAGE>
                                                                             16.

SECTION 10 - REPRESENTATIONS AND WARRANTIES

10.1 The Chargor represents and warrants in favour of the Chargee, acknowledging
that the Chargee is relying on such representations and warranties in extending
the Loan:

(1) the Chargor is a corporation duly and validly organized, validly subsisting
and in good standing under the laws of the Province of Alberta and has all
necessary corporate power and authority to enter into this Charge and the
Security and perform the obligations of it contained herein and therein, to own
and operate the Charged Premises and carry on its business pertaining thereto as
presently carried on and no steps or proceedings have been taken or are pending
to supersede the articles or bylaws of the Chargor in a manner which would
impair or limit the Chargor's ability to carry out its obligations hereunder or
under the Security;

(2) the Chargor has full power, legal right and authority to enter into this
Charge and the Security, as the case may be, and to do all such acts and things
as are required hereunder and thereunder to be done, observed or performed by it
in accordance with the terms hereof and thereof and there are no provisions in
the articles or bylaws of the Chargor or any unanimous shareholders agreement or
other agreement of or with respect to the Chargor which restricts, limits or
regulates in anyway the powers of the Chargor to borrow on credit or to issue,
sell or pledge any of the property or assets now or hereafter owned by it to
secure its debt obligations, save and except any provisions as with respect to
this Charge and the Security which have been complied with;

(3) the Chargor has taken all necessary corporate or other action to authorize
the execution, delivery and performance of this Charge and the Security, as the
case may be, and the observance and performance of the provisions of each in
accordance with their respective terms;

(4) neither the authorization, creation, execution or delivery of this Charge or
the Security will require any approval or consent of any governmental authority
or agency having jurisdiction nor will it be in conflict with or contravene any
of the Chargor's articles, by-laws, unanimous shareholder agreement, if any, or
resolutions of directors or shareholders or the provisions of any indenture,
instrument, agreement or undertaking to which the Chargor is a party or by which
it or its properties or assets are bound or result in the creation or imposition
of any hypothec, title retention, charge, pledge, lien, encumbrance or security
interest of any kind upon any of its property or assets subject to the charge or
security interest created by such security, other than in accordance with the
provisions of this Charge and the Security. This Charge and the Security when
executed and delivered will constitute valid and legally binding obligations of
the Chargor, enforceable in accordance with their respective terms, subject to
the usual qualifications as to enforceability in connection with bankruptcy,
insolvency, creditors rights generally and equitable remedies;

(5) there is not now pending or, to the best of the Chargor's knowledge or
belief after due internal inquiry, threatened against the Chargor any
litigation, action, suit or other proceeding by or before any court, tribunal or
other competent governmental agency or authority which would likely materially
adversely affect the present or prospective ability of the Chargor to perform
its obligations under this Charge or the Security as the case may be or which
calls into question the validity or enforceability of this Charge or the
Security;
<PAGE>

                                                                             17.

(6) the Chargor is not insolvent, bankrupt or proceeding with a wind-up, whether
voluntary or involuntary;

(7) the Chargor is the registered owner of a fee simple interest in the Lands,
and the legal owner of the Charged Premises, free and clear of all security
interests, charges, liens and other encumbrances, except for Permitted
Encumbrances;

(8) except as disclosed in the Environmental Report, the Charged Premises and
the existing uses thereof, comply with and have, to the best of the Chargor's
knowledge, at all times complied with, and the Chargor is not in violation of,
and has not violated, in connection with the ownership, use, maintenance or
operation of the Charged Premises and the conduct of any business related
thereto, any applicable federal, provincial, municipal or local laws,
regulations, orders or approvals of any governmental authority, including those
relating to environmental matters;

(9) the Chargor is not aware of any orders or directives of or relating to
environmental matters requiring any work, repairs, construction, or capital
expenditure with respect to the Charged Premises or the business related
thereto, nor has the Chargor received notice of same;

(10) to the best of the Chargor's knowledge and except as disclosed in the
Environmental Report, no Hazardous Materials (as defined in the Environmental
Indemnity Agreement) have been released into the environment from the Charged
Premises nor deposited, discharged, placed or disposed of, at, in, or on the
Charged Premises, nor have the Charged Premises been used at any time as a
landfill or waste disposal site to the best of the Chargor's knowledge after
making due inquiry. The representations and warranties contained in this
subsection (10) shall be in addition to and not in substitution for the
representations and warranties given by the Chargor in the Environmental
Indemnity Agreement;

(11) except as disclosed to the Chargee in writing, the Chargor has not received
any notice of or threat of a lien under the Builders' Lien Act (Alberta) against
the Charged Premises nor has any lien been registered against the Charged
Premises in respect of labour, materials or services furnished with respect to
any improvement thereon which has not been discharged;

(12) the Charge is not being given with the intention to use the proceeds
thereof to finance any alterations, additions or repairs to, or any
construction, erection, demolition or installation on the Charged Premises or
any structure thereon;

(13) there has been no improvement or materials supplied on or in respect of the
Charged Premises in respect of which a construction lien could arise and which
has not been completed or abandoned within the forty-five days immediately
preceding the date hereof;

(14) [INTENTIONALLY DELETED];

(15) except for certain encroachments of Improvements into public streets and
lanes abutting the Lands as revealed on the survey of the Lands provided by the
Chargor to the Chargee, the Charged Premises, and existing and proposed uses by
the Chargor and to the best of the Chargor's knowledge and belief, the tenants,
comply with all municipal by-laws including, applicable zoning, occupancy and
use bylaws and regulations and the Chargor has not received

<PAGE>
                                                                             18.

any notice of violation, work orders or notices of deficiency with respect to
the Charged Premises;

(16) the Charged Premises may be mortgaged by the Chargor in compliance with the
Land Titles Act of Alberta;

(17) all financial statements and data delivered or presented to the Chargee by
the Chargor up to and including the date hereof are true and correct in all
material respects as at the dates and for the periods indicated and have been
prepared in accordance with Canadian generally accepted accounting principles
and disclose to the Chargee all financial information relevant to the Chargee in
respect of making the Loan and there is no information known to the Chargee
which has not been disclosed the Chargee which would be material to the Chargee
in the making of the Loan; and

(18) to Chargor's knowledge based solely upon representations made to it by the
tenant under the Ply Gem Lease, the tenant under the Ply Gem Lease has obtained,
all material licences, permits and other authorizations to permit the lawful
construction, occupancy, operation and use of the Charged Premises.

10.2 The representations and warranties set out in this Section 10 when made on
behalf of a partnership shall, with respect to that partnership, refer to the
"partnership" and "partnership agreement" rather than "corporation" and
"articles and by-laws" and "partners" rather than "directors or shareholders".

10.3 The representations and warranties set out in this Section 10 shall speak
as of the date made, survive the execution and delivery of this Charge and the
making of any advance hereunder and continue to be true and accurate during the
Term of this Charge, notwithstanding any investigations or examinations which
may be made by the Chargee or the Chargee's solicitors and the Chargee shall be
deemed to have relied on such representations and warranties in making advances
hereunder and continuing with the Loan.

10.4 The Chargor shall indemnify and save harmless the Chargee for and against
all losses, damages, claims and expenses directly or indirectly incurred or
suffered by the Chargee resulting from any omission, inaccuracy or
misrepresentation of the Chargor herein relating to or concerning the Charged
Premises.

SECTION 11 - COVENANTS

11.1 The Chargor covenants with the Chargee that:

(1) the Chargor has a good and marketable registered fee simple title to the
Charged Premises;

(2) the Chargor has the right to charge the Charged Premises to the Chargee;

(3) upon default and the expiry of any applicable cure period, subject to the
rights of tenants the Chargee shall have quiet possession of the Charged
Premises, free from any encumbrance, other than Permitted Encumbrances;

<PAGE>
                                                                             19.

(4) the Chargor shall execute such further assurances of the Charged Premises as
may be requisite;

(5) the Chargor has done no act to encumber the Charged Premises, save and
except for the Permitted Encumbrances;

(6) the Chargor shall maintain the Permitted Encumbrances in good standing and
shall provide notice to the Chargee forthwith of any default thereunder;

(7) the Chargor shall, comply with the provisions of the Environmental Indemnity
Agreement;

(8) the Chargor will not initiate any proceedings under the Bankruptcy and
Insolvency Act (Canada) (the "BIA") or the Companies Creditors Arrangement Act
(Canada) (the "CCAA") which will affect the Loan, this Charge or the Security,
and accordingly, should the Chargor or, to the extent that the Loan, this Charge
or the Security is affected by or is subject to such proceedings, any related
person or corporation, including without limitation, any parent corporation of
the Chargor, or any beneficial owner of all or any part of the Charged Premises,
take the benefit of any statute affecting creditors' rights generally, including
without limitation, the making of an assignment for the general benefit of
creditors, the making of a proposal or filing of a notice of intention to make a
proposal under the BIA, or bringing proceedings under the CCAA, the Chargor
covenants and agrees to provide two Business Days' notice before commencing any
of the aforementioned proceedings and in such case receipt of same shall
constitute an immediate Event of Default if the Chargor or any beneficial owner
of all or any part of the Charged Premises is an applicant or takes the benefit
of such statute or proceeding or if any of these proceedings otherwise affects
the rights or entitlements of the Chargee under the Loan, this Charge or the
Security or the Chargee's abilities to enforce this Charge or the Security, and
prior to the commencement of any such proceedings, the Chargor shall deliver to
the Chargee copies of all relevant filing materials, including, without
limitation, copies of draft court orders, plans of compromise, proposals and
notices of intention, and during this notice period it is intended by the
Chargor that the Chargee shall be entitled to enforce this Charge and the
Security for the purpose of, among other things, taking possession and control
of the Charged Premises, in the Chargee's sole discretion;

(9) Except to the extent permitted under the Ply Gem Lease or an Acceptable
Replacement Lease, no building or other property now or hereafter charged by
this Charge shall be removed, demolished or materially altered, without the
prior written consent of the Chargee, and except that the Chargor shall have the
right, without such consent, to remove and dispose of, free from the lien or
charge of this Charge, such fixed equipment as from time to time may become worn
out or obsolete, provided that either (a) simultaneously with or prior to such
removal, any such equipment shall be replaced with other equipment of a quality
comparable to that of the replaced equipment and free from any lien, title
retention agreement, conditional sale contract, security agreement or other
encumbrance, and by such removal and replacement the Chargor shall be deemed to
have subjected such fixed equipment to the lien or charge of this Charge, or,
(b) any net cash proceeds received from such disposition shall at the option of
the Chargee be paid over promptly to the Chargee to be applied at the Chargee's
sole discretion towards the payment of any amounts owing hereunder;

<PAGE>
                                                                             20.

(10) The Chargor will not, without the prior consent in writing of the Chargee,
which consent may be unreasonably withheld, initiate, join in or consent to any
change to or modification in any private restrictive covenant, municipal or
other governmental law, rule or regulation, by-law, or any other public or
private restrictions, limiting or defining the uses which may be made of the
Charged Premises, or any part thereof and which will adversely affect the
Security, the day to day operations of the Charged Premises, the income derived
therefrom or the value of the Charged Premises;

(11) The Chargor shall comply in all material respects with all covenants, deed
restrictions, easements, laws, rules, regulations and orders which pertain to
the use or operation of the Charged Premises or the performance by the Chargor
of its obligations under this Charge, and shall ensure that all representations
and warranties contained herein continue to be true and accurate at all times
during the Term;

(12) The Chargor shall at its sole cost and expense, forthwith remove or take
remedial action required by any applicable Environmental law as would a prudent
owner of property similar to the Charged Premises and otherwise in accordance
with any applicable laws, regulations or orders or directions with regard to any
Hazardous Material, discovered in or on any part of the Charged Premises or
released, discharged or deposited into the environment at, on or near the
Charged Premises in so far as it affects the Charged Premises, and shall ensure
material compliance with the provisions of the Environmental Protection and
Enhancement Act (Alberta) and the Dangerous Goods, Transportation and Handling
Act (Alberta) and any other laws, statutes, by-laws or codes governing the
storage of gasoline and other fuel products. The covenants contained in this
subsection (12) shall be in addition to and not in substitution for the
covenants made by the Chargor in the Environmental Indemnity Agreement;

(13) The Chargor shall permit the Chargee access to all records, both written
and electronic, pertaining to the Charged Premises and upon request shall make
copies of such information for the Chargee. For such purposes, the Chargee shall
have reasonable access to the Charged Premises or such other place as such
records are kept upon reasonable prior written notice to the Chargor;

(14) The Chargor shall fulfil any undertaking provided by it to the Chargee at
the time of the advance of the Loan;

(15) The Chargor shall at all times comply in all respects with all rent control
legislation governing the Charged Premises and in the event that any rents are
found not to be legal rents, whether disclosed in writing by the Chargor to the
Chargee as of the date hereof or not, the Chargor shall forthwith comply in all
respects with any order or other directive issued under rent control legislation
governing the Charged Premises; and

(16) Single Purpose Entity. Chargor covenants and agrees that it has not and
shall not:

      (a)   engage in any business or activity other than the ownership,
            operation, management and maintenance of the Charged Premises, and
            activities incidental thereto;

<PAGE>
                                                                             21.

      (b)   acquire or own any material assets other than (i) the Charged
            Premises, and (ii) such incidental personal property as may be
            necessary for the operation of the Charged Premises;

      (c)   except as otherwise permitted herein, merge into or consolidate with
            any person or entity or dissolve, terminate or liquidate in whole or
            in part, transfer or otherwise dispose of all or substantially all
            of its assets or change its legal structure, without in each case
            Chargee's consent;

      (d)   fail to observe any of its organizational formalities as evidenced
            in any corporate or partnership organizational documents or preserve
            its existence as an entity duly organized, validly existing and in
            good standing under the laws of the jurisdiction of its organization
            or formation, and qualification to do business in the Province where
            the Charged Premises are located, if applicable, or without the
            prior written consent of Chargee, amend, modify, terminate or fail
            to comply with the provisions of Chargor's corporate or partnership
            organizational documents;

      (e)   own any subsidiary or make any investment in, any person or entity
            without the consent of Chargee;

      (f)   commingle its assets with the assets of any of its affiliates,
            principals or any other person or entity, or fail to use its own
            separate stationery, invoice and cheques;

      (g)   incur any debt, secured or unsecured, direct or contingent
            (including guaranteeing any obligation), other than the Loan, except
            for (i) trade payables incurred in the ordinary course of its
            business of owning and operating the Charged Premises, provided that
            such debt is not evidenced by a note and is paid when due and (ii)
            intra-company debt provided by an Affiliate of Chargor provided such
            debt is subordinate to the Loan and not secured by the Charged
            Premises;

      (h)   become insolvent or fail to pay its debts and liabilities
            (including, as applicable, shared personnel and overhead expenses)
            from its assets as the same shall become due;

      (i)   fail to maintain its records, books of account and bank accounts
            separate and apart from those of the principals and affiliates of
            Chargor;

      (j)   enter into any contract or agreement with any partner, principal or
            affiliate of Chargor, guarantor or indemnitor, or any partner,
            principal or affiliate thereof, except upon terms and conditions
            that are intrinsically fair and substantially similar to those that
            would be available on an arms-length basis with third parties other
            than any partner, principal or affiliate of Chargor, guarantor, or
            indemnitor, or any partner, principal or affiliate thereof;

      (k)   seek the dissolution or winding up in whole, or in part, of Chargor;

      (l)   fail to correct any known misunderstanding regarding the separate
            identity of Chargor, or of principal, as the case may be;

<PAGE>
                                                                             22.

      (m)   guarantee or become obligated for the debts of any other entity or
            person or hold itself out to be responsible for the debts of another
            person;

      (n)   make any loans or advances to any third party, including any
            partner, principal or affiliate of Chargor, and shall not acquire
            obligations or securities of any partner, principal or affiliate of
            Chargor;

      (o)   fail to file its own income tax returns but may file consolidated
            tax returns with Guarantor;

      (p)   fail either to hold itself out to the public as a legal entity
            separate and distinct from any other entity or person or to conduct
            it business solely in its own name in order not (i) to mislead
            others as to the identity with which such other party is transacting
            business, or (ii) to suggest that Chargor is responsible for the
            debts of any third party (including any partner, principal or
            affiliate of Chargor);

      (q)   fail to maintain adequate capital for the normal obligations
            reasonably foreseeable in a business of its size and character and
            in light of its contemplated business operations;

      (r)   file or consent to the filing of any petition, either voluntary or
            involuntary, to take advantage of any applicable insolvency,
            bankruptcy, liquidation or reorganization statute, or make an
            assignment for the benefit of creditors;

      (s)   share any common logo with or hold itself out as or be considered as
            a department or division of (i) any partner, principal or affiliate
            of Chargor or (ii) any other person or entity;

      (t)   fail to allocate fairly and reasonably any overhead expenses that
            are shared with an affiliate, including paying for office space and
            services performed by any employee of an affiliate;

      (u)   pledge its assets for the benefit of any other person or entity,
            other than with respect to the Loan; or

      (v)   fail to maintain a sufficient number of employees, if any, in light
            of its contemplated business operations.

(17) Chargor shall keep at its principal office a register for the registration
of the Loan and the name and address of the registered owner of the Loan.
Initially, the Chargee shall be registered as owning a 100% interest in the
Loan. Upon an assignment, pledge, sale or transfer of the Loan or any part
therein by Chargee in accordance with Section 31.1 of this Charge, Chargor shall
then forthwith update the register to record such transfer, pledge, sale or
assignment.

SECTION 12 - TAXES, LIENS, ENCUMBRANCES, ETC.

12.1

<PAGE>
                                                                             23.

(1) The Chargor will pay or cause to be paid, as and when the same shall fall
due and payable, all Taxes, liens, charges, fuel bills, or claims (collectively
the "Bills") and will, upon the written request of the Chargee, within sixty
(60) days subsequent to the deadline for such payments produce and leave with
the Chargee or, as the Chargee may direct, true copies of all notices in respect
of such Bills, and all such Bills and receipts for the same evidencing payment
for the full amounts thereof. The Chargor shall make an initial deposit of Taxes
to the Chargee in an amount determined by the Chargee on the date of this
Charge, to be held by the Chargee in escrow. In addition, the Chargor shall pay
to the Chargee in equal monthly instalments on the first day of each month in
each calendar year during the Term, commencing on the first day of the month
next following the Interest Adjustment Date, one-twelfth (1/12) of the annual
Taxes (or such amount as may be required in order to pay Taxes as they become
due) as reasonably estimated by the Chargee; said deposit of Taxes and payments
of Taxes (the "Tax Escrow Fund") shall be paid to the Chargee in addition to the
instalments due and payable under this Charge, to be held by the Chargee for the
payment of Taxes, with interest to accrue thereon to the benefit of the Chargor.
Interest will be paid on the minimum monthly balance in the Tax Escrow Fund
based on the Toronto Dominion Bank Chequing/Savings account interest rate (the
"TD Account Rate") as published in the Cannex Financial Exchanges Limited,
Deposit Account Summary. Interest will be set on the first Business Day of the
month, calculated monthly and paid annually by way of credit to the account on
the close of business December 31 of each year during the term of the Loan. If
the Cannex Summary ceases publication or ceases to publish the TD Account Rate,
the Chargee shall select a comparable publication to determine the TD Rate or,
if the TD Rate is not available, shall select a comparable chequing/savings rate
from the Cannex Summary or a comparable publication. The Chargee agrees that
upon and subject to receipt of monies for Taxes it will remit such monies to the
proper municipal offices in payment of Taxes as required from time to time;
provided that if any Event of Default shall occur and be continuing, then the
Chargee, at its sole option, may apply all or any part of the Tax Escrow Fund to
any amount due hereunder, whether Principal, interest or otherwise. The Chargor
shall also pay, or cause to be paid, to the Chargee before the due date for the
payment of Taxes (or next periodic instalment date therefor, as the case may be)
any sums in addition to the aforesaid monthly instalments which may be required
in order that out of such sums held in trust or escrow by the Chargee and such
additional sums, the Chargee may pay the whole amount of Taxes assessed thereto,
on the due date for payment thereof. In addition, the Chargor acknowledges its
obligation to pay all Taxes when due, whether or not the payment of all Taxes
are the responsibilities of tenants and whether or not such tenants have
remitted the same to the Chargor.

(2) Notwithstanding Subsection 12.1(1), Chargor shall be permitted to remit all
realty taxes directly to the appropriate taxing authority prior to interest and
penalties being due thereon provided that (i) there has not been an Event of
Default (as defined herein), (ii) within sixty (60) days subsequent to the
deadline for such payments Chargor produces and delivers to Chargee or, as
Chargee may direct, true copies of all notices in respect of such realty taxes
and receipts for the same evidencing payment for the full amounts thereof, (iii)
the Ply Gem Lease or an Acceptable Replacement Lease is in effect and not in
default (as defined therein), and (iv) there is continued ownership of the
Chargor by an Affiliate.

(3) The Chargee may, if Chargor fails to comply with this Section 12.1, after
written notice being given to the Chargor, pay all Bills and any amount(s) so
paid by the Chargee shall be added to and become part of the Principal hereby
secured and be a charge on the Charged

<PAGE>
                                                                             24.

Premises in favour of the Chargee and shall be payable forthwith by the Chargor
to the Chargee with interest at the Interest Rate until paid.

(4) If the Charged Premises or any part thereof are sold or forfeited for
nonpayment of Taxes while any sum remains unpaid hereunder, the Chargee may
acquire the title and rights of the purchaser at any sale, or the rights of any
other person or corporation becoming entitled on or under any such forfeiture,
or the Chargee may pay, either in its own name or in the name of the Chargor and
on the Chargor's behalf, any and all sums necessary to be paid to redeem such
land so sold or forfeited, and to revest such lands in the Chargor, and the
Chargor hereby nominates and appoints the Chargee as agent to pay such monies on
the Chargor's behalf and in the Chargor's name, and any monies so expended by
the Chargee shall be added to and become part of the Principal Sum hereby
secured and be a charge on the Charged Premises in favour of the Chargee and
shall be payable forthwith by the Chargor to the Chargee and until so paid shall
bear interest at the Interest Rate or in the alternative, the Chargee shall
purchase the Charged Premises at any tax sale of the same.

(5) Notwithstanding anything to the contrary herein contained, the Chargor shall
have the right to contest or defend, or permit the tenant under the Ply Gem
Lease or an Acceptable Replacement Lease to contest or defend, any actions
brought to recover, or appeal any judgments recovered against it in respect of
any Bills, or other like charges, or any construction or other liens levied or
registered against the Charged Premises, by appropriate proceedings diligently
conducted in good faith, provided that the Chargor shall have first deposited
with the Chargee, or otherwise provided to the reasonable satisfaction of the
Chargee, such security as the Chargee acting reasonably may require including,
without limitation, security for the payment of such Bills, charges or liens and
any costs payable in connection therewith, and further provided that the Chargee
shall have determined, to its reasonable satisfaction, that any such contest,
defence or appeal or any delay or nonpayment of such Bills, charges or liens
shall not materially prejudice the prior charge or lien of this Charge or the
title of the Chargor to the Charged Premises. Should the Chargee at any time
thereafter determine, in its reasonable discretion, that any such contest,
defence or appeal or any delay or nonpayment of such Bills, charges or liens
shall materially prejudice the prior charge or lien of this Charge or the title
of the Chargor to the Charged Premises, the Chargee may realize upon such
security for payment as aforesaid and pay such Bills, charges or liens. Upon
termination of such proceedings, the Chargor shall promptly pay or cause to be
paid the amount of the Bills, charges or liens and any other costs, fees,
interest and penalties as are properly payable upon determination of such
proceedings and promptly cause any tax notifications, caveats, liens,
certificates of or pertaining litigation or any other form of notice or
encumbrance in respect thereof to be promptly discharged from the title to the
Charged Premises at the sole expense of the Chargor whereupon all such security
deposited or otherwise provided to the Chargee and any proceeds from the
realization thereof not paid on account of Bills as aforesaid, shall be returned
and paid to the Chargor.

(6) The Chargor agrees to and does hereby indemnify the Chargee against all
claims, demands, costs, damages and expenses which arise in respect of any
default, late payment, omission, act or proceeding by the Chargor, or any of
them, under or in respect of this Section 12.

<PAGE>
                                                                             25.

(7) If the Chargee comes into and for as long as it is in possession of the
Charged Premises by reason of the default of the Chargor or the exercise of any
rights or remedies to which it is entitled hereunder, the Chargee, in its sole
discretion, shall be entitled to and shall enjoy all the rights of the Chargor
set out in Section 12.1(5) hereof, to the exclusion of the Chargor.

(8) All refunds, rebates or credits in connection with a reduction in Taxes as a
result of any proceedings or actions brought by the Chargor and payable to the
Chargor and not owed to a tenant under any of the Leases are hereby pledged by
the Chargor to the Chargee and shall be subject to the Chargee's security
interest.

SECTION 13 - INSURANCE

13.1 INSURANCE ESCROWS AND ASSIGNMENT OF INSURANCE.

(1) Following an Event of Default, the Chargor, at the request of Chargee, shall
(a) make an initial deposit of insurance premiums to the Chargee in amounts
determined by the Chargee to be held by the Chargee in escrow, and (b) pay to
the Chargee in equal monthly instalments on the first day of each month in each
calendar year during the Term, commencing on the first day of the month next
following the Interest Adjustment Date one twelfth of the amount which would be
sufficient to pay the insurance premiums due for the renewal of the coverage
afforded by the policies of insurance required in this Charge as reasonably
estimated by the Chargee. Said deposit of insurance premiums and insurance
instalments (the "Insurance Escrow Payments") shall be paid to the Chargee in
addition to the instalments due and payable under this Charge, to be held by the
Chargee (the "Insurance Escrow Fund") for the payment of insurance premiums with
interest thereon to accrue thereon to the benefit of the Chargor. Interest will
be paid on the minimum monthly balance in the Insurance Escrow Fund based on the
Toronto Dominion Bank Chequing/Savings account interest rate (the "TD Account
Rate") as published in the Cannex Financial Exchanges Limited, Deposit Account
Summary. Interest will be set on the first Business Day of the month, calculated
monthly and paid annually by way of credit to the account on the close of
business December 31 of each year during the term of the Loan. If the Cannex
Summary ceases publication or ceases to publish the TD Account Rate, the Chargee
shall select a comparable publication to determine the TD Rate or, if the TD
Rate is not available, shall select a comparable chequing/savings rate from the
Cannex Summary or a comparable publication. The Chargee agrees that upon and
subject to receipt of monies for insurance, it will remit such monies to the
proper insurance company or agent in payment of insurance premiums as required
from time to time; provided that if any Event of Default shall occur and be
continuing, then the Chargee, at its sole option may apply all or any part of
the Insurance Escrow Fund to any amount due hereunder, whether Principal,
interest or otherwise. The Chargor shall also pay, or cause to be paid, to the
Chargee before the due date for the payment of any insurance required in this
Charge (or next periodic instalment date therefor, as the case may be) any sums
in addition to the aforesaid monthly instalments which may be required in order
that out of such sums held in trust or escrow by the Chargee and such additional
sums, the Chargee may pay the whole amount of such required insurance premiums,
on the due date for payment thereof. In addition, the Chargor acknowledges its
obligation to pay all required insurance premiums when due, whether or not the
payment of all such required insurance premiums are the responsibilities of
tenants and whether or not such tenants have remitted the same to the Chargor.

<PAGE>
                                                                             26.

(2) Regardless of the types or amount of insurance required hereunder and
approved by the Chargee, the Chargor shall assign and deliver in accordance with
Section 13.1 hereof to the Chargee the proceeds of all policies of insurance
which insure against any property loss or damage to the Charged Premises,
including without limitation, the proceeds of policies of insurance collected
pursuant to Sections 13.3 and 13.4 hereof, which policies shall all provide that
first loss in respect of property loss or damage to the Charged Premises is
payable to the Chargee or pursuant to its direction, and shall contain (as
applicable) the Standard Insurance Bureau of Canada and C.B.M.U.A. forms of
mortgage clause, except as modified by the other provisions hereof without
contribution, and satisfactory to the Chargee; if the Chargor defaults in so
insuring the Charged Premises or in so delivering the policies of insurance
required hereunder, the Chargor shall be in default under the Loan and Security
and, notwithstanding any other remedies available the Chargee may, at its option
but without obligation to do so, effect such insurance from year to year and pay
the premiums therefore, and the Chargor will reimburse the Chargee on demand for
any premium so paid, with interest at the Interest Rate from the time of payment
and the same shall be secured by the Security; if the Chargee by reason of such
insurance receives any money for loss or damages the same shall be applied by
the Chargee in accordance with the provisions of Section 13.4 hereof.

(3) The Chargor agrees forthwith upon the happening of any loss or damage with
respect to the Charged Premises to furnish all necessary proofs and do all
necessary acts to enable the Chargee or any purchaser of the Charger's interest
in the Charged Premises from the Chargee to obtain proceeds of insurance in
respect thereof.

13.2 INSURANCE REQUIREMENTS.

(1) Chargor shall obtain and maintain, or cause to be obtained and maintained,
insurance for Chargor and the Charged Premises providing at least the following
coverage:

      (a)   Property Insurance with respect to the Improvements and all personal
            property relating thereto insuring against any peril now or
            hereafter included with the classification "All Risks of Physical
            Loss" (and including the perils of earthquake, flood, sewer back-up,
            and collapse) to a limit representing 100% of the full replacement
            cost of the Improvements (including foundations and footings) and
            the personal property. If required by the Chargee, acting
            reasonably, the Chargor will have a replacement cost approach
            appraisal completed by an independent appraiser which cost shall be
            paid by the Chargor. The insurance will contain a replacement cost
            endorsement with no restriction to repair or replace on the same or
            an adjacent site. The insurance will include a Stated Amount
            endorsement to waive the co-insurance provisions, or will not be
            subject to any co-insurance. Coverage for terrorism or terrorist
            acts is required provided such coverage is commonly insured against
            for similar property types in similar locations. The insurance will
            include full By-laws extensions, including the increased cost of
            construction, cost of demolition of the undamaged portion of the
            Charged Premises and resultant loss of income;

      (b)   Broad Form Boiler and Machinery Insurance (without exclusion for
            explosion) written on a comprehensive repair and/or replacement cost
            basis covering all

<PAGE>
                                                                             27.

            boilers, pipe turbines, engines and all other pressure vessels,
            machinery and equipment located in, on or about the Charged Premises
            with the same limits and By-Laws extension as the "All Risks"
            Property Insurance described above;

      (c)   Business Interruption Insurance (written on a gross rents or gross
            profits basis) to cover any abatement or loss of income resulting
            from an insured peril with a minimum period of indemnity of 12
            months, or such longer period as the Chargee, acting reasonably, may
            require. The insurance shall also protect the Chargor if there is an
            insured loss not resulting in actual loss of revenue but resulting
            in extra expenses incurred in maintaining the business and/or
            operations of the Chargor, and will include coverage against denial
            of access by civil authority for a period of not less than 30 days.
            The amount of coverage shall be adjusted annually to reflect the
            rents payable during the succeeding twelve (12) month period;

      (d)   Commercial General Liability Insurance with a limit of not less than
            $5,000,000 on a per occurrence basis (or such higher limit as the
            Chargee acting reasonably may require from time to time). Such
            policy shall name the Chargee as an Additional Insured and shall
            include all legal liability to the extent insurable and imposed upon
            Chargee and including all court costs and fees and expenses of legal
            counsel. The policy will include, but not be limited to, non-owned
            automobile liability, bodily injury and property damage liability;
            personal injury and advertising liability; liquor law liability and
            garagekeepers liability (if applicable); employee benefits
            liability; contingent employers' liability; cross liability,
            severability of interests; contractual liability; limited pollution
            liability (equivalent to IBC form 2313 or its equivalent) to cover
            claims arising out of sudden and accidental pollutants; pollution
            liability arising from smoke from a hostile fire; and will allow for
            the use of force to protect persons and/or property;

      (e)   During the period of any construction, additions, renovation or
            alteration of the Improvements:

            (i)   "All Risks" (including the perils of Earthquake, Flood, and
                  Collapse) Builders Risk Insurance (providing coverage at least
                  equivalent to the latest CCDC 201 wording or it's equivalent)
                  covering all on-site and off-site work, materials and
                  equipment related thereto to a limit representing 100% of
                  total hard construction costs and including at least 25% of
                  total soft construction costs. The Builders Risk Insurance
                  will include Delayed Income Insurance to a limit representing
                  at least 100% of the anticipated first year's revenue from the
                  Charged Premises. The Builders Risk Insurance will include a
                  Permission To Occupy Clause and will not be subject to a
                  Watchman Warranty Clause;

            (ii)  Contractor's Liability Insurance to a limit of not less than
                  $5,000,000 per occurrence to cover third party claims arising
                  out of the construction operations and including completed
                  operations liability from commencement of construction until
                  at least 12 months after completion.

<PAGE>
                                                                             28.

                  The Chargor and the Chargee will be Additional Insureds under
                  the Contractor's Liability Insurance. However, if the cost of
                  construction is in excess of $10,000,000, Wrap-Up Liability
                  Insurance is required with a limit of not less than
                  $10,000,000 covering the Chargor, all contractors,
                  sub-contractors and trades and including the Chargee as an
                  Additional Insured.;

            (iii) Architects' and Engineers' Errors and Omissions Insurance to a
                  limit of at least $1,000,000 or such other limit as is
                  acceptable to and/or required by the Chargee covering all
                  professionals engaged in the construction operations;

            (iv)  Performance, and Labour and Material Bonds for at least 50% of
                  the contract price with the Chargee shown as a Dual Obligee;

      (f)   Such other forms of insurance (or any replacements or substitutions
            thereof or additions thereto) as the Chargee, acting reasonably, may
            require from time to time given the nature of the security and that
            which a prudent owner of similar security would purchase and
            maintain, or cause to be purchased and maintained.

(2) The Chargee acknowledges and agrees that it may only require Chargor to
obtain and maintain environmental insurance or cause the same to be obtained and
maintained under the following circumstances: (i) to the extent that an
environmental condition arises that is subject to environmental law and affects
the Charged Premises and such condition was not known to Chargee at or before
closing or disclosed in the Environmental Report, or (ii) to the extent the
environmental condition was known to Chargee at or before closing or disclosed
in the Environmental Report and there has been a material change in such
condition that (a) the cost to remediate has increased by more than $500,000 and
any reserves or additional security provided at closing to remediate such
condition is not sufficient to cover such increased cost, or (b) the condition
shall materially impair the use and operation of the business of the tenant at
the Charged Premises.

(3) If any construction, renovation or alteration of the Improvements is done by
the tenant under the Ply Gem Lease or an Acceptable Replacement Lease, then
Chargor shall cause the tenant to comply with the provisions of the Ply Gem
Lease or an Acceptable Replacement Lease relating thereto.

(4) Notwithstanding anything in Section 13.1 and 13.2(1) to the contrary, and
provided that (i) the Ply Gem Lease or an Acceptable Replacement Lease remains
in effect, (ii) the tenant under the Ply Gem Lease or an Acceptable Replacement
Lease is not in default beyond the expiration of any applicable notice and cure
period (as defined therein), (iii) the tenant under the Ply Gem Lease or an
Acceptable Replacement Lease carries all insurance required and (iv) to the
extent deductibles are not specified in the Ply Gem Lease or an Acceptable
Replacement Lease, the insurance maintained by the tenant under the Ply Gem
Lease or an Acceptable Replacement Lease contains deductible amounts available
in the insurance marketplace that would be maintained by a prudent owner and
which are acceptable to the Chargee, acting reasonably, then the requirements of
Section 13.1 and Subsection 13.2(1) shall be deemed satisfied, except that

<PAGE>
                                                                             29.

with respect to Chargor's continuing obligation to maintain terrorism insurance,
Chargor shall cause the tenant under the Ply Gem Lease or an Acceptable
Replacement Lease at all times to maintain terrorism insurance in such amounts
as are customary for properties of sizes, types and uses as the Charged
Premises.

(5) The following provisions shall generally apply to all insurance referred to
herein:

      (a)   All policies of insurance are to be in form and with insurers
            acceptable to the Chargee. In the event that the Chargee or their
            insurance consultant (acting reasonably) concludes that the
            insurance placed on the Charged Premises is inappropriate or
            insufficient or underwritten with an insurer that does not meet with
            their approval, the Chargee reserves the right to place insurance to
            the extent of its interest. The cost of such insurance shall be
            borne by the Chargor;

      (b)   The Chargee will be named as First Mortgagee and Loss Payee under
            all direct and indirect damage policies which policies shall include
            a standard mortgage clause as approved by the Insurance Bureau of
            Canada which policies shall all provide that first loss in respect
            of the Charged Premises loss or damage is payable to the Chargee;

      (c)   The Chargee will be an Additional Insured under all Liability
            Insurance policies;

      (d)   All policies will name the Chargor as a Named Insured and will
            include the interests of all entities for whom the Chargor has
            contractually agreed to insure as their respective interests may
            appear;

      (e)   Except for cancellation for non-payment of premium for which
            statutory conditions may prevail, all policies will provide that no
            cancellation or termination thereof or adverse material change shall
            take effect without the insurer providing the Chargee with at least
            30 days prior written notice (or such longer period as the Chargee,
            acting reasonably, may require);

      (f)   Contain a waiver of the insurer(s)' rights of subrogation against
            the Chargee;

      (g)   Contain deductible amounts available in the insurance marketplace
            that would be maintained by a prudent owner and which are acceptable
            to the Chargee, acting reasonably;

      (h)   Shall provide for interim claim payments;

      (i)   The Chargee will be provided with full, original, certified copies
            of all insurance policies in force on the Charged Premises at all
            times when this Agreement is in effect which policies shall be
            signed by the insurer(s) or their duly authorized signatories.
            Certificates or Binders of Insurance will be acceptable to the
            Chargee but only as interim evidence to be replaced, within thirty
            (30) days after issuance of such policy, by the full, original
            certified policy copies once they are issued by the insurer(s).
            Certificates or Binders of Insurance with respect to all renewal and
            replacement policies shall be provided to the Chargee not less than
            thirty (30)

<PAGE>
                                                                             30.

            days prior to the expiration date of any of the policies required to
            be maintained hereunder;

      (j)   The Chargee reserves the right, in the event of a change in the
            insurance policies after the date hereof, to have any or all
            policies in force on the Charged Premises examined by the Chargee's
            insurance consultant at the expense of the Chargor;

      (k)   If Chargor fails to maintain and provide the Chargee with evidence
            of the insurance policies in force on the Charged Premises, the
            Chargee may obtain such insurance at the Chargor's sole cost and
            expense. The Chargee shall provide the Chargor with ten (10) days
            prior written notice that it intends to obtain such insurance,
            except in circumstances where the Chargee has received notice from
            the insurer that an insurance policy is to be cancelled on short
            notice which does not permit time for the delivery of prior notice
            to the Chargor the Chargee may obtain such insurance and provide
            notice to the Chargor as soon as reasonably possible thereafter;

      (l)   If the insurance required hereunder is maintained under "blanket"
            policies of insurance covering the Charged Premises and other
            properties and assets not constituting a part of the security
            hereunder, the Chargee will be provided with the amount that has
            been declared for the security of the Charged Premises under the
            statement of values filed with the insurers and such "blanket"
            policy or policies shall comply in all other respects with the
            Chargee's insurance requirements included in this Charge;

      (m)   The Chargor shall comply with all insurance requirements and shall
            not bring or keep or permit to be brought or kept any article upon
            any part of the Charged Premises or cause or permit any condition to
            exist thereon which would be prohibited under the insurance policies
            and/or invalidate the insurance coverage required hereunder to be
            maintained by the Chargor;

      (n)   Approval of any insurance by Chargee shall not be a representation
            concerning the solvency of any insurer or the sufficiency of any
            amount of insurance. Chargee shall not be responsible for, nor incur
            any liability for the insolvency of the insurer or other failure of
            the insurer to perform, even though Chargee may have caused the
            insurance to be placed with the insurer after failure of Chargor to
            furnish such insurance;

      (o)   Chargor shall immediately notify the Chargee whenever any separate
            insurance is taken out with respect to the Charged Premises and
            shall deliver the policy or policies with respect to the same to
            Chargee and shall add Chargee as a Named Insured on such insurance.

13.3 EXPROPRIATION AWARDS.

(1) Chargor shall promptly give Chargee notice of the actual or threatened
commencement of any expropriation proceeding and shall deliver to Chargee copies
of any and all papers served in connection with such proceedings. Chargee may
participate in any such proceedings to the

<PAGE>
                                                                             31.

extent permitted by law. Upon an Event of Default, Chargor shall, at its
expense, diligently prosecute any such proceedings and shall consult with
Chargee, its solicitors and experts, and cooperate with them in the carrying-on
or defence of any such proceedings. Chargor shall not make any agreement in lieu
of expropriation of the Charged Premises or any portion thereof without the
prior written consent of Chargee in each instance, which consent shall not be
unreasonably withheld or delayed in the case of a taking of an insubstantial
portion of the Charged Premises. Notwithstanding any taking by any public or
quasi-public authority through expropriation or otherwise (including, but not
limited to any transfer made in lieu of or in anticipation of the exercise of
such taking), Chargor shall continue to pay the Loan at the time and in the
manner provided for its payment in this Charge and in the Security, and the Loan
shall not be reduced until any award or payment therefor shall have been
actually received and applied by Chargee, after the deduction of expenses of
collection, to the reduction or discharge of the Loan. Chargee shall not be
limited to the interest paid on the award by the expropriating authority but
shall be entitled to receive out of the award interest at the rate or rates
provided herein or in the Security.

(2) Notwithstanding the provisions of Section 13.3(1), Chargor shall not make
any agreement in lieu of expropriation of the Charged Premises or any portion
thereof without the prior written consent of the Chargee in each instance, which
consent shall not be unreasonably withheld or delayed in the case of a taking of
an insubstantial portion of the Charged Premises and any Net Proceeds payable as
a result of any such action shall be governed by the terms of Section 13.4
herein.

(3) Provided the Ply Gem Lease or an Acceptable Replacement Lease is not in
default (as defined therein), Subsections 13.3(1) and 13.3(2) are subject to the
rights of the tenant under the Ply Gem Lease or an Acceptable Replacement Lease
and the terms and conditions thereof. Notwithstanding the foregoing, the Chargee
shall have the right, without premium or penalty to the Chargor, to apply
expropriation awards to the loan balance if expropriation occurs during the last
six months of the Term.

(4) The Chargor acknowledges that the Chargor has been advised by counsel as to
the meaning of sections 49 and 52 of the Expropriation Act (Alberta). To the
extent permitted by law, the Chargor waives the provisions of sections 49 and 52
of the Expropriation Act. To the extent permitted by law, the Chargor further
waives any provisions which may be enacted and in force from time to time in
replacement of or in addition to the provisions of the sections 49 and 52 of the
Expropriation Act.

(5) The Chargor further covenants and agrees, without limiting any of the terms
of this Charge in respect of expropriation, condemnation or other public taking
of lands, that, if any part of the Property is taken for any public work under
the Municipal Government Act (Alberta) or the Public Works Act (Alberta) or any
other statute or regulation, then all compensation payable to the Chargor (or
anyone claiming an interest under or through the Chargor), subject to the rights
of the tenant under the Ply Gem Lease or an Acceptable Replacement Lease, will
be payable to and will be paid to the Chargee. To the extent permitted by law,
the Chargor assigns to the Chargee any of the Chargor's interest in such
compensation.

<PAGE>
                                                                             32.

13.4 RESTORATION AFTER CASUALTY/EXPROPRIATION. In the event of a casualty or a
taking by expropriation proceedings, the following provisions shall apply in
connection with the Restoration (as defined below) of the Charged Premises and
availability to Chargor of the Net Proceeds (defined below) received with
respect thereto:

(1) If the Charged Premises shall be damaged or destroyed, in whole or in part,
by fire or other casualty, or if the Charged Premises or any portion thereof is
taken in any expropriation or expropriation proceedings, Chargor, upon receiving
notice thereof, promptly shall give notice thereof to Chargee and promptly shall
commence and diligently prosecute, or cause to be commenced and diligently
prosecuted, the completion of the repair and restoration of the Charged Premises
as nearly as possible to the condition the Charged Premises was in immediately
prior to such casualty or taking, with such alterations as may be approved by
Chargee ("Restoration"). All plans and specifications for the Restoration and
all contractors, subcontractors and materialmen to be engaged in the
Restoration, as well as the contracts under which they have been engaged, shall
be subject to prior review and acceptance by Chargee and, at Chargee's option,
an independent consulting engineer selected by Chargee ("Casualty Consultant"),
such acceptance not to be unreasonably withheld or delayed. All costs and
expenses of the Casualty Consultant shall be paid by Chargor. Chargee shall have
access to the plans and specifications and all permits, licenses and approvals
required or obtained in connection with the Restoration.

(2) If the estimated cost to complete Restoration does not exceed $325,000
("Restoration Threshold"), and no Event of Default has occurred and is then
continuing, Chargor shall settle, or cause the tenant under the Ply Gem Lease or
an Acceptable Replacement Lease to settle, any insurance claims or expropriation
action in its commercially reasonable judgment. If the estimated cost to
complete Restoration exceeds the Restoration Threshold or if an Event of Default
has occurred and is then continuing, Chargee shall have the right to participate
in and approve any settlement for insurance claims or expropriation awards, and
Chargor hereby irrevocably appoints the Chargee, in the name of Chargor as its
attorney, to file and prosecute such claim and to collect and to make receipt
for any such payment. Chargor hereby directs for all proceeds recovered on
account of a casualty or expropriation to be paid directly to Chargee and hereby
grants to Chargee an irrevocable power of attorney for the purpose of endorsing
any draft received on account of a casualty or expropriation. If Net Proceeds
are paid directly to Chargor, such Net Proceeds shall, until the completion of
Restoration, be held in trust for Chargee and shall be segregated from other
funds of Chargor and used exclusively to pay for the cost of Restoration in
accordance with the terms hereof. If Chargee shall retain Net Proceeds and apply
same in reduction of the Loan, the lien of the Security shall be reduced only by
the amount received and retained by Chargee and actually applied by Chargee in
reduction of the Loan. If the Charged Premises are sold through foreclosure or
otherwise prior to receipt of the Net Proceeds, Chargee shall have the right,
whether or not a deficiency judgment on the Security shall have been sought,
recovered or denied, to receive the Net Proceeds, or so much thereof as is
sufficient to pay the Loan in full. "Net Proceeds" for purposes of this Section
13 shall mean: (i) the net amount of all insurance proceeds received by Chargee
under the policies carried pursuant to Subsections 13.2(1)(a), 13.2(1)(d),
13.2(1)(e) and 13.2(1)(f) of this as a result of such damage or destruction,
after deduction of Chargee's costs and expenses (including, but not limited to,
reasonable fees and disbursements of legal counsel), if any, in collecting the
same, or (ii) the net amount of all awards and payments received by Chargee with
respect to a taking referenced in

<PAGE>
                                                                             33.

Section 13.3, after deduction of Chargee's costs and expenses (including, but
not limited to, reasonable legal fees), if any, in collecting the same,
whichever the case may be. Unless required by Applicable Laws, no earnings or
interest on the Net Proceeds or Net Proceeds Deficiency shall be payable by
Chargee to Chargor.

(3) Chargee agrees to make the Net Proceeds available to Chargor for Restoration
of the Charged Premises provided (i) the Net Proceeds are less than the
outstanding principal balance of the Loan, (ii) no Event of Default shall have
occurred and be continuing and no default is then occurring under the Ply Gem
Lease or an Acceptable Replacement Lease (as defined therein); (iii) the Charged
Premises and the use thereof after the Restoration will be in compliance with,
and permitted under, all applicable laws, including without limitation
environmental laws; (iv) such casualty or taking does not materially impair
access to the Charged Premises or the Improvements; (v) either (A) in the case
of Restoration following a casualty, less than fifty percent (50%) of the total
floor area of the Improvements have been damaged or rendered unusable as a
result of such casualty or (B) in the case of Restoration following an
expropriation, less than twenty-five percent (25%) of the Lands is taken, such
Lands that is taken is located along the perimeter or periphery of the Charged
Premises, and no portion of the Improvements is located in such Lands, and (vi)
completion of the Restoration is reasonably estimated to occur on or before the
earlier of (A) six (6) months prior to the Maturity Date or (B) the earliest
date required for such completion under the terms of the Ply Gem Lease or an
Acceptable Replacement Lease or any major lease or applicable law. In addition,
if the cost of Restoration is estimated to exceed the Restoration Threshold, the
following conditions must be satisfied to Chargee's reasonable satisfaction:

      (a)   The Casualty Consultant or other independent architect acceptable to
            Chargee must certify that the Net Proceeds are sufficient to pay in
            full the cost of Restoration based on the plans and specifications
            for Restoration approved by Chargee or Chargor shall have deposited
            with Chargee the Net Proceeds Deficiency in cash or a cash
            equivalent acceptable to Chargee, which amount will be commingled
            with the Net Proceeds held by Chargee, disbursed by Chargee with the
            Net Proceeds as provided below in Subsection 13.4(4), and until so
            disbursed constitute security for the Loan;

      (b)   Chargee shall be satisfied that any operating deficits, including
            all scheduled payments of principal and interest under the Charge or
            the Security, which will be incurred with respect to the Charged
            Premises as a result of the occurrence of any such casualty or
            taking, whichever the case may be, will be covered out of (A) the
            Net Proceeds, or (B) other funds of Chargor; and

      (c)   Chargee shall be satisfied that, upon the completion of the
            Restoration and related lease-up, if applicable, the net cash flow
            of the Charged Premises will be restored to a level sufficient to
            cover all carrying costs and operating expenses of the Charged
            Premises, including, without limitation, debt service on the Loan at
            a coverage ratio on a "normalized" basis (i.e., after deducting
            replacement reserve requirements and reserves for tenant
            improvements and leasing commissions from net operating income,
            whether or not such sums are escrowed with Chargee) of at least
            1.25: 1.0, which coverage ratio shall be equal to or greater than
            the coverage

<PAGE>
                                                                             34.

            ratio existing as of the date of this Charge or, if lower, the
            coverage ratio which existed as of the date immediately preceding
            such casualty or taking, as the case may be.

(4) If the cost of completing Restoration as reasonably estimated by Chargor
shall be less than or equal to the Restoration Threshold, the Net Proceeds will
be disbursed directly to Chargor, or to the tenant under the Ply Gem Lease or an
Acceptable Replacement Lease at the direction of the Chargor, for Restoration.
If the cost of completing Restoration as reasonably estimated by Chargor exceeds
the Restoration Threshold, the Net Proceeds shall be paid to Chargee to be held
by Chargee in a segregated account and made available to Chargor (or to the
tenant under the Ply Gem Lease or an Acceptable Replacement Lease at the
direction of the Chargor) for the Restoration, subject to the following
conditions:

      (a)   The Net Proceeds other than the Net Proceeds paid under the Policy
            described in Subsection 13.2(1)(c) shall be disbursed by Chargee to
            Chargor or directly to Chargor's contractors from time to time
            during the course of Restoration, upon receipt of evidence
            satisfactory to Chargee that (A) all materials installed and work
            and labour performed in connection with the Restoration (except to
            the extent that they are to be paid for out of the requested
            disbursement) have been paid for in full, and (B) there exist no
            stop work orders, construction liens or notices of construction
            liens either registered or unregistered, or any other liens or
            encumbrances of any nature whatsoever on the Charged Premises
            arising out of the Restoration which have not either been fully
            bonded and discharged of record or, in the alternative, fully
            insured to the satisfaction of Chargee by the title company insuring
            the lien of this Charge.

      (b)   Chargee shall not be obligated to make disbursements of the Net
            Proceeds more frequently than once every calendar month.

      (c)   Each disbursement shall be made in an amount equal to the costs
            actually incurred from time to time for work in place as part of the
            Restoration, as certified by the Casualty Consultant, minus the
            Casualty Retainage. The term "Casualty Retainage" shall mean an
            amount equal to the greater of (A) ten percent (10%) of the costs
            actually incurred for the work or materials in place for which such
            disbursement if requested, as certified by the Casualty Consultant,
            or (B) the amount actually held back by Chargor from contractors,
            subcontractors and materialmen engaged in the Restoration. After
            such time as the Casualty Consultant certifies to Chargee that fifty
            percent (50%) of the required Restoration has been completed, no
            further Casualty Retainage will be reserved from disbursements of
            Net Proceeds. The Casualty Retainage collected prior to such time
            shall not be released until (A) the Casualty Consultant certifies to
            Chargee that the Restoration has been substantially completed and
            all approvals necessary for the re-occupancy and use of the Charged
            Premises have been obtained from all appropriate governmental
            authorities, and (B) Chargee receives evidence satisfactory to it
            that the costs of the Restoration have been paid in full or will be
            paid in full out of the Casualty Retainage. Chargee, however, agrees
            to release portions of the Casualty Retainage prior thereto with
            respect to amounts

<PAGE>
                                                                             35.

            due to a contractor, subcontractor or materialman for which (i) the
            Casualty Consultant shall have certified to Chargee that such
            contractor, subcontractor or materialman has satisfactorily
            completed all work and has supplied all materials in accordance with
            the provisions of the contractor's, subcontractor's or materialman's
            contract, and (ii) the contractor, subcontractor or materialman
            delivers evidence of payment in full of all sums due to the
            contractor, subcontractor or materialman as may be reasonably
            requested by Chargee or by the title company insuring the lien of
            this Charge. If required by Chargee, the release of any such portion
            of the Casualty Retainage shall be approved by the surety company,
            if any, which has issued a payment or performance bond with respect
            to the contractor, subcontractor or materialman. Alternatively, the
            Chargee may, in its discretion, hold back ten percent (10%) of the
            costs actually incurred for the work and materials until such time
            as all lien periods have expired and all registered liens, if any,
            have been discharged.

      (d)   If during the cost of Restoration, the undisbursed balance of the
            Net Proceeds and any Net Proceed Deficiency previously paid by
            Chargor shall not, in the reasonable opinion of Chargee, be
            sufficient to pay in full the balance of the costs which are
            estimated by the Casualty Consultant to be incurred in connection
            with the completion of the Restoration, Chargor shall deposit the
            deficiency (also a "Net Proceeds Deficiency") with Chargee before
            any further disbursement of the Net Proceeds shall be made. The Net
            Proceeds Deficiency deposited with Chargee shall be held by Chargee
            and shall be disbursed for costs actually incurred in connection
            with the Restoration on the same conditions applicable to the
            disbursement of the Net Proceeds, and until so disbursed pursuant to
            this Subsection 13.4(4)(d) shall constitute security for the Loan.

      (e)   The excess, if any, of the remaining balance of the Net Proceeds and
            Net Proceeds Deficiency deposited with Chargee after (A) the
            Casualty Consultant certifies to Chargee that the Restoration has
            been completed in accordance with the provisions of this Subsection
            13.4(4)(d) and (B) Chargee has received evidence satisfactory to
            Chargee that all costs incurred in connection with the Restoration
            have been paid in full, shall be remitted by Chargee to Chargor,
            provided no Event of Default shall have occurred and shall be
            continuing under This Charge or the Security.

(5) All Net Proceeds not required (i) to be made available for the Restoration
or (ii) to be returned to Chargor as excess Net Proceeds pursuant to Subsection
13.4(4)(e) shall be retained and applied by Chargee toward the payment of the
Loan whether or not then due and payable in such order, priority and proportions
as Chargee in its discretion shall deem proper or, at the discretion of Chargee,
the same shall be paid, either in whole or in part, to Chargor. If Chargee shall
receive and retain Net Proceeds, the lien of this Charge shall be reduced only
by the amount received and retained by Chargee and actually applied by Chargee
in reduction of the Loan with no prepayment penalty or premium.

(6) If as a result of casualty or a taking by expropriation proceedings, the
tenant under the Ply Gem Lease or an Acceptable Replacement Lease makes a
rejectable offer under Paragraph

<PAGE>
                                                                             36.

18 thereof, to terminate the Ply Gem Lease or an Acceptable Replacement Lease as
to the Charged Premises which is accepted by the Chargor, then the portion of
the Termination Amount (as defined in the Ply Gem Lease or an Acceptable
Replacement Lease) required to pay the Loan in full shall be paid to Chargee.
Upon Chargee's receipt of the Termination Amount, Chargee shall apply such sum
at par, without prepayment penalty or premium or defeasance payment, to
reduction of the outstanding balance of the Loan. Chargor shall not reject any
offer to terminate the Ply Gem Lease or an Acceptable Replacement Lease without
first obtaining the written consent of the Chargee.

(7) Notwithstanding any provision of this Section 13.4 to the contrary, provided
that (i) the Ply Gem Lease or an Acceptable Replacement Lease remains in effect,
and (ii) the tenant under the Ply Gem Lease or an Acceptable Replacement Lease
is not in default (as defined therein) beyond the expiration of any applicable
notice and cure period, then this Section 13.4 is subject to the rights of the
tenant under the Ply Gem Lease or an Acceptable Replacement Lease and the terms
and conditions thereof. Notwithstanding the foregoing, the Chargee shall have
the right, without premium or penalty to the Chargor, to apply Net Proceeds to
payment of the Loan balance if Restoration cannot be completed prior to six
months before the end of the Term.

SECTION 14 - IMPROVEMENTS, FIXTURES

14.1 All erections, buildings, improvements, fixed machinery, Equipment and
plant, structures and fixtures, which are now or which shall hereafter be placed
in or installed upon the Charged Premises, and which at law are fixtures, save
for:

(1) tenants' fixtures, equipment and improvements which any tenant has the right
to install upon and remove from the Charged Premises, or any part thereof,
unless or until the right of the tenant to remove the same ceases, by
abandonment or otherwise; and

(2) fixtures, equipment and improvements which have been leased by the Chargor
but only for so long as such fixtures, equipment and improvements are not the
property of the Chargor; shall form part of the realty and of the security
hereby constituted and are included in the expression "Charged Premises".

SECTION 15 - ASSIGNMENT OF RENTS AND LEASES

15.1 As further security for the payment of all monies owing hereunder, the
Chargor does hereby assign to the Chargee all Leases now or hereafter existing
and all rights and benefits of all guarantees and indemnities thereof and all
Rents which shall now or may hereafter become payable by reason of any Lease,
tenancy or tenancies, or use or occupation of the Charged Premises, or any part
thereof or of any guarantees and indemnities thereof which assignment shall be
in priority to all other liens, charges and assignments granted to other parties
by the Chargor (other than Permitted Encumbrances) and if the Chargor is in
default in the observance or performance of any of the terms, covenants and
conditions of this Charge, then the Chargee shall have the right, by its agent
or otherwise, to take and receive Rents, issues and profits thereof.

<PAGE>
                                                                             37.

SECTION 16 - NOTICE OF ALLEGED DEFAULTS BY LESSOR UNDER LEASES

16.1 The Chargor covenants and agrees with the Chargee to provide Chargee with a
copy of any default notice sent to the tenant under the Ply Gem Lease or an
Acceptable Replacement Lease.

SECTION 17 - MANAGEMENT, REPAIR AND INSPECTIONS

17.1 The Chargee acknowledges that the tenant under the Ply Gem currently
self-manages the Charged Premises. If, at any time, the Ply Gem Lease or an
Acceptable Replacement Lease is not in effect or is in default (as defined
therein), the Charged Premises must, at all times be managed in a professional
and prudent manner by Chargor or by a management company approved by the Chargee
in its sole discretion to a standard equivalent to properties of similar size,
location, age and class and the Chargor covenants to do so or cause the same to
be done. The Chargee shall have the prior right of approval of any manager of
the Charged Premises and any management agreement. In addition to any other
rights hereunder of the Chargee, the Chargee shall have the right, at its sole
discretion to replace any manager at the expense of the Chargor in the event the
management standards are not maintained as required hereunder. The Chargee will
accept the Chargor acting as manager of the Charged Premises provided that the
Charged Premises are managed and maintained in accordance with the provisions
hereof. If any management company is affiliated with the Chargor, such
management company shall execute an agreement providing that (i) all management
fees are subordinate to the Charge and the Security and (ii) any management
agreement may be terminated by the Chargee in an Event of Default.

17.2 The Chargor shall promptly repair, maintain, restore, replace, rebuild,
keep, make good, finish, add to and put in order the Charged Premises, so that
the same shall, at all times, be in good condition and repair and in compliance
with the requirements of all governmental authorities. The Chargor shall not
commit or suffer any waste of the Charged Premises. Subject to the rights of any
tenants, the Chargor shall comply with, or cause to be complied with, all
statutes including without limitation the provisions of the Builders' Lien Act
(Alberta), ordinances and requirements of any governmental body having
jurisdiction with respect to the Charged Premises; the Chargor shall complete
and pay for, within a reasonable time, any structure at any time in the process
of construction on the Charged Premises. The Chargor shall permit the Chargee or
its authorized agents at all reasonable times to enter upon the Charged Premises
and inspect same, (such inspections may include but shall not be limited to
environmental testing) and if such inspection reveals that any repairs or like
actions are necessary that are the Chargor's obligations pursuant to this
Charge, the Chargee may give notice to the Chargor requiring the Chargor
commence action within thirty (30) days to repair, rebuild or reinstate the
same, or take such other like action within a reasonable time. Upon the Chargor
receiving any such notice, and failing to repair, rebuild, reinstate, or take
such other like action in accordance with such notice within 105 days of the
notice, such failure shall constitute a breach of covenant and an Event of
Default hereunder, provided that if the Chargor fails to repair as aforesaid the
Chargee may repair, rebuild or reinstate the Charged Premises at the cost of the
Chargor and charge all sums of money determined by the Chargee to be properly
paid therefor to the Chargor and interest shall be charged thereon at the
Interest Rate until paid, which sums shall be payable on demand by the Chargor
and shall be added to and become part of the Principal hereby secured and be a
charge on the Charged Premises in favour of the Chargee and
<PAGE>

                                                                             38.

shall be secured by this Charge and the Security. This provision shall be in
addition to any statutory covenants implied in this Charge. The Chargor shall
execute and deliver, from time to time, such further instruments as may be
requested by the Chargee to confirm the lien or charge of this Charge on any of
the Charged Premises.

SECTION 18 - EXPENSES OF OBTAINING AND MAINTAINING SECURITY

18.1 All reasonable and properly chargeable out-of-pocket solicitor's,
inspector's, valuator's, consultant's, architect's, surveyor's and appraiser's
fees and expenses for drawing and registering this Charge and the Security and
financing statements in connection therewith and for examining the Charged
Premises and the title thereto before the date hereof and for making and
maintaining this Charge as a registered charge on the Charged Premises and
maintaining the Security (including the registration and filing of renewals) and
in exercising or enforcing or attempting to enforce or advising the Chargee in
respect of defaults hereunder or in pursuance of any right, power, remedy or
purpose hereunder or subsisting at law, any legal costs between solicitor and
his own client generally as from time to time permitted by the laws of Alberta
in connection therewith, and also reasonable allowance for the time, work and
expenses of the Chargee or of any agent of the Chargee in connection therewith,
and together with all reasonable sums which the Chargee may from time to time
advance, expend or incur hereunder, for insurance premiums, Bills, Taxes, rates,
or in or toward payment of prior liens, charges, encumbrances or claims charged
or to be charged against the Charged Premises, or in maintaining, repairing,
restoring or completing the Charged Premises, or in obtaining the renewal, from
time to time, of filings or registrations pertaining to the Security, and in
inspecting, leasing, managing or improving the Charged Premises as permitted
hereunder, including the price or value of any goods of any sort or description
supplied to be used on the Charged Premises as permitted hereunder, are to be
secured hereby and by the Security and shall be a charge on the Charged
Premises, together with the interest thereon at the Interest Rate, and all such
monies shall be repayable to the Chargee, on demand, except as herein otherwise
provided.

18.2 If any action or proceeding be commenced (except an action to foreclose
this Charge or to collect the money that is secured hereby) in which the Chargee
becomes a party or participant by reason of being the holder of this Charge or
the indebtedness secured hereby, all sums paid by the Chargee for the expense of
so becoming a party or participating (including all reasonable and properly
chargeable legal costs as between a solicitor and his own client) shall, on
written notice, be paid by the Chargor, together with interest thereon at the
Interest Rate from the dates of payment of such sums by the Chargee, and shall
be a lien and charge on the Charged Premises, prior to any right or title to,
interest in, or claim upon the Charged Premises subordinate to the lien and
charge of this Charge, and shall be deemed to be secured by this Charge and by
the Security.

SECTION 19 - MAINTENANCE OF CHARGE

19.1 The Chargor will fully and effectually maintain and keep the security
hereby created as a valid and effective security during the currency hereof and,
except as permitted by this Charge, will not permit, suffer or cause the
registration of any debt, lien, charge, mortgage, encumbrance

<PAGE>
                                                                             39.

or privilege whatsoever upon, against or with respect to the Charged Premises or
the assets ancillary thereto or used in connection therewith.

SECTION 20 - ACCELERATION

20.1 The whole of the Principal Sum together with interest thereon at the
Interest Rate, interest on overdue interest and any amounts payable pursuant to
Section 3, and any other amounts secured hereby at the option of the Chargee,
shall become due and payable and all powers conferred on the Chargee herein and
hereby shall become exercisable, in like manner to all intents and purposes as
if the time herein mentioned for payment of such Principal monies had fully come
and expired, if otherwise provided in this Charge or if any of the following
events shall occur (the occurrence of any such is hereinafter referred to as an
"Event of Default"), and any applicable grace or cure period expires without
cure having been completed:

(1) if any payment of any instalment of Principal, interest or any other monies
due hereunder is not paid when due; or

(2) if any payment of any Taxes or other Bills described in Section 12.1(1) of
this Charge, subject always to the provisions of Section 12.1(5) hereof, is not
paid in full on or before the fifth (5th) day after the date on which such
payment is due; or

(3) if any payment of any Insurance Escrow Payments described in Section 13.1 of
this Charge is not paid in full on or before the fifth (5th) day after the date
on which such payment is due; or

(4) upon default, beyond the expiration of any applicable notice and cure
periods, either in delivering certified copies of policies of insurance or
certificates therefor or in assigning the proceeds of such policies insuring
against property loss or damage in accordance with Section 13 hereof or in
reimbursing the Chargee for premiums paid on such insurance, as herein provided,
or upon default in keeping in force the insurance herein required; provided that
it shall not be an Event of Default if any policy of insurance is cancelled for
non-payment of premium if (i) Chargee has required that insurance premiums be
deposited with Chargee pursuant to Section 13.1 hereof and Chargor has timely
deposited with Chargee sums sufficient to pay the premiums for such policies,
and (ii) the failure to keep the policy in full force and effect is due solely
to Chargee's failure to make a timely disbursement of funds to pay the premiums
due on the policy when Chargee is required to do so under this Charge;or

(5) upon the actual waste, removal or demolition of, or material alteration to,
any part of the Charged Premises, except as approved by the Chargee; or

(6) upon default or non-compliance with the provisions of the Builders' Lien Act
(Alberta); or

(7) upon assignment by the Chargor to any other party of the whole or a part of
the rents, income or profits arising from the Charged Premises, without the
prior written consent of the Chargee; or

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                                                                             40.

(8) upon the failure to remove, insurance against or bond over within thirty
(30) after the filing thereof of any tax notification or charge, lien or
encumbrance required to be removed in accordance with this Charge or the
Security, subject always to the provisions of Section 12.1(5) hereof; or

(9) upon default or non-compliance by the Chargor, or any other person bound by
or acknowledged to be bound by the terms of this Charge, with respect to any of
the provisions of this Charge, the Security or any other agreements registered
on title which is not cured (i) in the case of any default which can be cured by
the payment of a sum of money, within five (5) days after written notice from
Chargee to Chargor, which notice may run concurrently with a notice of intention
to enforce by the Chargee under the Bankruptcy and Insolvency Act (Canada), or
(ii) in the case of any other default, within thirty (30) days after written
notice from Chargee to Chargor; provided that if a default under clause (ii)
cannot reasonably be cured within such thirty (30) day period and Chargor has
responsibly commenced to cure such default promptly upon notice thereof from
Chargee and thereafter diligently proceeds to cure same, such thirty (30) day
period shall be extended for so long as it shall require Chargor, in the
exercise of due diligence, to cure such default, but in no event shall the
entire cure period be more than one hundred five (105) days, except that with
respect to a default or non-compliance under the Environmental Indemnity
Agreement which requires remediation, the cure period shall be extended without
limitation so long as Chargor is in the exercise of due diligence, to cure such
default in accordance with the requirements of applicable environmental laws,
and Chargee may, at Chargor's cost, retain an environmental consultant to review
Chargor's actions in attempting to cure any default hereunder and advise Chargee
as to whether, in the opinion of the environmental consultant, Chargor is
proceeding to cure such default with due diligence in accordance with said
environmental laws; or

(10) upon material non-compliance in respect of the Charged Premises with the
provisions of the Environmental Protection and Enhancement Act (Alberta) and the
Dangerous Goods, Transportation and Handling Act (Alberta) and any other laws,
statutes, by-laws or codes relating to environmental matters; or

(11) subject to the provisions of Section 12.1(5) and Section 19.1 hereof, upon
the registration or filing of any lien, charge or encumbrance against the
Charged Premises, without the prior written consent of the Chargee, which
consent may be withheld by the Chargee in its sole and absolute discretion,
which is not removed, insured against or bonded over within thirty (30) days
after the filing thereof; or

(12) if the Chargor shall become subject to an Event of Insolvency, or if the
Chargor shall take any steps to terminate its corporate existence, voluntarily
or under an order or decree of any court of competent jurisdiction, or
otherwise; or

(13) except as otherwise permitted herein, any failure by the Chargor to comply
with the terms, covenants and conditions of Section 24 of this Charge (entitled
"Non-Transferability"); or

(14) any failure by the Chargor to comply with the terms, covenants and
conditions of Section 11.1(16) of this Charge (entitled "Single Purpose
Entity"); or

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                                                                             41.

(15) if the Charged Premises are abandoned; or

(16) upon a default under any charge, lien, encumbrance which is secured by or
creates a security interest in or with respect to the Charged Premises (and the
Chargor shall forthwith deliver written notice to the Chargee of any such
default upon becoming aware or receiving notice of the same); or

(17) if at any time during the Term there is a material breach of any
representation or warranty contained herein or at any time during the Term any
representation or warranty contained herein, in any material respect, is no
longer true or accurate or becomes untrue or inaccurate for any reason and
results in material adverse effect or in Chargee's sole discretion may result in
material adverse effect; or

(18) except as otherwise permitted herein, if there is any change in the
beneficial ownership of the Charged Premises without the Chargee's consent; or

(19) If Guarantor fails on the last day of any fiscal quarter to maintain the
Net Worth Requirement and within sixty (60) days from the date Chargee notifies
Chargor of such failure, Guarantor fails either to (I) deliver to Chargee
evidence satisfactory to Chargee that Guarantor has attained the Net Worth
Requirement, or (II) do each of the following (a) identify for Chargee an
additional guarantor whose Net Worth (as determined by Chargee in its sole
discretion) is, at such time, at least equal to the difference between the Net
Worth of Guarantor, and the Net Worth Requirement, (b) cause such additional
guarantor to execute and deliver to Chargee (i) a guarantee of Chargor's
recourse obligations under the Charge and (ii) an environmental indemnity
agreement, each on substantially the same form as the guarantee and
environmental indemnity agreement executed by Guarantor, concurrently herewith;
(c) execute and deliver, and/or cause to be executed and delivered, as
applicable, such other amendments and modifications to and reaffirmations of the
Loan documents as Chargee may reasonably require; and (d) deliver opinions of
counsel with respect to said additional Guarantor, such additional guaranty and
environmental indemnity, and any such amendments and modifications to and
reaffirmations of the Loan documents as Chargee may reasonably require;

SECTION 21 - REMEDIES ON DEFAULT

21.1 If an Event of Default has occurred hereunder and is continuing, and any
applicable grace or cure period expires without cure having been completed, then
at any time thereafter:

(1) the Chargee may terminate its obligation to advance any further monies
hereunder;

(2) the Chargee may declare the Principal Sum, all accrued and unpaid interest
thereon and all other monies secured hereunder to be immediately due and payable
and proceed to exercise any and all rights hereunder or under the Security or
any other rights available to it;

(3) the Chargee shall be entitled to collect from Chargor, to the extent
permitted by applicable law, in addition to the amounts set forth in subsection
21.1(2) above, an amount, equal to the greater of (i) three (3) months interest
at the Interest Rate on the Principal amount then outstanding and (ii) the
positive excess of (A) the present value ("PV") of all future installments of
principal and interest due under the Loan including the principal amount due at
maturity

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                                                                             42.

(collectively, "All Future Payments"), discounted at an interest rate per annum
equal to the Government of Canada Bond Yield (defined below) published during
the second full week preceding the date on which such prepayment is payable for
instruments having a maturity coterminous with the remaining term of the Loan,
over (B) the principal amount of the Loan outstanding immediately before such
prepayment. For purposes hereof, "Government of Canada Bond Yield" means the
yield to maturity, less one-half percent, on the date of such prepayment of
Government of Canada Bonds having the term to maturity closest to what otherwise
would have been the remainder of the term of the Loan calculated from the date
of prepayment. If there is more than one Government of Canada Bond with a
maturity equally close to what otherwise would have been the remaining term of
the Loan calculated from the date of prepayment, the selection of the applicable
bond shall be made by the Chargee acting reasonably;

(4) the Chargee may at the expense of the Chargor, when and to such extent as
the Chargee deems advisable, observe and perform or cause to be observed and
performed any such covenant, agreement, proviso or stipulation, and the
reasonable cost thereof, with interest thereon at the Interest Rate until paid,
shall immediately become due from the Chargor to the Chargee forthwith after
demand by the Chargee upon the Chargor therefor and shall be a lien and charge
on the Charged Premises, prior to any right or title to, interest in, or claim
upon the Charged Premises subordinate to the lien and charge of this Charge, and
shall be deemed to be secured by this Charge and the Security;

(5) the Chargee may send or employ any inspector or agent to inspect and report
upon the value, state and condition of the Charged Premises and may employ a
lawyer to examine and report upon the title to the same;

(6) the Chargee may, subject to the requirements of law and the rights of the
tenant under the Ply Gem Lease or an Acceptable Replacement Lease, without
notice to the Chargor or any other party, enter into possession of the Charged
Premises and whether in or out of possession collect the rents, issues and
profits thereof, and make any demise or lease or sublease of the Charged
Premises, or any part thereof, for such terms and periods and at such rents and
upon such conditions as shall appear to the Chargee most advantageous and as can
reasonably be obtained therefor in the circumstances and the power of sale
hereunder may be exercised either before or after and subject to any such
demise, lease or sublease. Notwithstanding the foregoing, the Chargee shall not,
prior to completion of foreclosure, agree to any reduction of rent under the Ply
Gem Lease or an Acceptable Replacement Lease, modify the terms of the Ply Gem
Lease or an Acceptable Replacement Lease, or cancel or terminate the Ply Gem
Lease or an Acceptable Replacement Lease unless the tenant under the Ply Gem
Lease or an Acceptable Replacement Lease is in default (as defined therein)
beyond an applicable cure period;

(7) subject to applicable law, it shall be lawful for and the Chargor hereby
grants full power, right and license to the Chargee to enter, without notice and
to seize and distrain upon the Charged Premises, or any part thereof, and by
distress warrant to recover by way of rent reserved as in the case of a demise
of the Charged Premises, as much of the monies secured hereby as shall from time
to time be or remain in arrears or unpaid, together with all costs, charges or
expenses attending such levy or distress, as in like cases of distress for rent;

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                                                                             43.

(8) subject to applicable law, the Chargee, on default of payment for at least
fifteen (15) days may, on at least thirty-five (35) days' notice sell and
dispose of the Charged Premises with or without entering into possession of the
same; and all remedies available may be resorted to and all rights, powers and
privileges granted or conferred upon the Chargee under and by virtue of any
statute or by this Charge may be exercised and no want of notice or publication
or any other defect, impropriety or irregularity shall invalidate any sale made
or purporting to be made of the Charged Premises; and the Chargee may sell,
transfer and convey all or any part or parts of the Charged Premises by such
method and on such terms and on credit or for part cash and part credit,
(provided the Chargee shall not be accountable for any default in respect of the
credit) secured by contract or agreement for sale, or charge, or otherwise, as
shall appear to the Chargee most advantageous and for such prices as can
reasonably be obtained therefor in the circumstances; and in the event of sale
on credit or part cash and part credit, whether by way of contract for sale or
by conveyance or transfer, charge, or otherwise, the Chargee is not to be
accountable for or charged with any monies until the same shall be actually
received in cash or received under a take-back charge; and sales may be made
from time to time of parts of the Charged Premises to satisfy interest or
leaving the Principal or part thereof to run with interest at the Interest Rate;
and the Chargee may make any stipulations as to title or evidences or
commencement of title or otherwise as the Chargee shall deem proper and may buy
in or rescind or vary any contract for sale; and on any sale or resale, the
Chargee shall not be answerable for loss occasioned thereby; and for any of such
purposes the Chargee may make and execute all arrangements and assurances that
the Chargee shall deem advisable or necessary;

(9) the Chargee shall be entitled from time to time (in addition to and without
prejudice to all its other rights and privileges) to appoint a receiver or a
receiver and manager (which receiver or receiver and manager is hereinafter
referred to as a "Receiver") of the Charged Premises and of the rents, issues
and profits thereof without the necessity of first exercising its right to enter
into possession. Such Receiver may be appointed upon delivery by the Chargee to
the Receiver of a notice in writing as to default under the provisions of this
Charge. Upon the appointment of a Receiver from time to time the following
provisions shall apply:

      (a)   the Receiver shall have unlimited access to the Charged Premises as
            agent and attorney for the Chargor (which right of access shall not
            be revocable by the Chargor) and shall have full power and unlimited
            authority (but no obligation) to take all actions necessary in
            regard to the Charged Premises, including the sale of all or part or
            parts of the Charged Premises without notice and by such method(s)
            and upon such terms and conditions as the Receiver deems necessary
            or desirable;

      (b)   the Receiver shall be the irrevocable agent or attorney of the
            Chargor for the collection of all rents falling due in respect of
            the Charged Premises or any part thereof whether in respect of any
            tenancies created in priority to this Charge or subsequent thereto;

      (c)   the Receiver may, in the discretion of the Chargee and by writing be
            vested with all or any of the powers and discretion of the Chargee;

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                                                                             44.

      (d)   the Chargee may from time to time by such writing fix the
            remuneration of the Receiver who shall be entitled to deduct the
            same out of the revenue from the Charged Premises or the proceeds
            thereof;

      (e)   the Receiver shall, so far as concerns responsibility for his acts
            or omissions, be deemed the agent or attorney of the Chargor and in
            no event the agent of the Chargee;

      (f)   the appointment of the Receiver by the Chargee shall not incur or
            create any liability on the part of the Chargee to the Receiver in
            any respect and such appointment or anything which may be done by
            the Receiver or the removal of the Receiver or the termination of
            any such receivership shall not have the effect of constituting the
            Chargee a mortgagee in possession in respect of the Charged Premises
            or any part thereof;

      (g)   the Receiver shall from time to time have the power to rent any
            portion of the Charged Premises which may become vacant for such
            term and subject to such provisions as shall appear to the Receiver
            most advantageous and as can reasonably be obtained therefor in the
            circumstances, and in so doing the Receiver shall act as the
            attorney or agent of the Chargor and shall have authority to execute
            any offer to lease, tenancy agreement or lease of any space in the
            Charged Premises in the name of and on behalf of the Chargor and the
            Chargor undertakes to ratify and confirm whatever actions the
            Receiver may take in such regard;

      (h)   the Receiver shall have full power to complete any unfinished
            construction on the Charged Premises with the intent that the
            Charged Premises when so completed shall be complete structures as
            represented by the Chargor to the Chargee for the purpose of
            obtaining the Loan;

      (i)   the Receiver shall have full power to manage, operate, repair, alter
            or extend the Charged Premises or any part thereof in the name of
            the Chargor for the purpose of securing the payment of rental or
            revenue from the Charged Premises or any part thereof;

      (j)   the Receiver shall account for the monies received in respect of the
            Charged Premises or any part thereof and out of such cash so
            received the Receiver shall, subject to the further direction of the
            Chargee in its discretion, in the following order pay:

            (i)   the Receiver's remuneration aforesaid;

            (ii)  all payments reasonably made or incurred by the Receiver in
                  connection with the receivership;

            (iii) all payments of interest, Principal and other money which may,
                  from time to time, be or become charged upon the Charged
                  Premises in priority to this Charge, and all Bills, Taxes,
                  insurance premiums and every other

<PAGE>
                                                                             45.

                  proper expenditure reasonably made or incurred by the Receiver
                  in respect to the Charged Premises or any part thereof;

            (iv)  all payments to the Chargee of all interest due or falling due
                  hereunder and the balance to be applied upon Principal due and
                  payable and secured hereby; and

            (v)   and thereafter any surplus remaining in the hands of the
                  Receiver after payments made as aforesaid shall be accountable
                  to the Chargor or other persons entitled thereto;

      (k)   the Chargee may at any time and from time to time terminate the
            receivership by notice in writing to the Chargor and to the
            Receiver; and

      (1)   save as to claims for accounting under Section 21.1(9)(j) above, the
            Chargor hereby releases and discharges the Chargee and the Receiver
            from every claim of every nature, whether resulting in damages or
            not, which may arise or be caused to the Chargor by reason or as a
            result of anything done by the Chargee or any successor or assign
            claiming through or under the Chargee or the Receiver under the
            provisions of this Section unless such claim be the direct result of
            dishonesty or gross neglect.

21.2

(1) The foreclosure, cancellation or any other dealing with any Security shall
not release or affect this Charge, and the taking of this Charge, or the
foreclosure or cancellation of, or any other dealing with, or proceeding under,
this Charge, shall not release or affect any Security;

(2) The Chargee may at any and all times release any part or parts of the
Charged Premises or any other Security or any surety for payment of all or any
part of the monies hereby secured or may release the Chargor or any other person
from any covenant or other liability to pay the Principal Sum and interest and
all other monies secured hereby, or any part thereof, either with or without any
consideration therefor, and without being accountable for the value thereof or
for any monies except those actually received by the Chargee, and without
thereby releasing any other part of the Charged Premises, or any other Security
or covenants herein contained, it being especially agreed that notwithstanding
any such release, the Charged Premises, Security and covenants remaining
unrelated shall stand charged with the whole of the monies hereby secured;

(3) In the event of the monies advanced hereunder are applied to payment of any
charge or encumbrance, the Chargee shall be subrogated to all the rights of and
stand in the position of and be entitled to all the equities of the party or
parties so paid whether such charge or encumbrance has or has not been
discharged; and the decision of the Chargee as to the validity or amount of any
advance or disbursement made under this Charge or of any claims so paid, shall
be final and binding on the Chargor; and

(4) The Chargee shall not be charged with any monies receivable or collectible
out of the Charged Premises or otherwise, except those actually received by or
on behalf of the Chargee and all revenue of the Charged Premises received or
collected by the Chargee from any source

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                                                                             46.

other than payment by the Chargor may, at the option of the Chargee be retained
in a separate account to be used in maintaining or insuring or improving the
Charged Premises to the extent required for such purpose in the opinion of the
Chargee acting reasonably; or in payment of Taxes or other liens, charges or
encumbrances against the Charged Premises; or applied in reduction of the
amounts owing hereunder.

SECTION 22 - LEASES AND RENTS

(1) Chargor may enter into new Leases for space at the Charged Premises and
renew or extend existing Leases without Chargee's prior written consent provided
that each such Lease (i) is not a Major Lease as defined below, (ii) provides
for rental rates and terms comparable to existing local market rates and terms
(taking into account the type and quality of the tenant) as of the date such
Lease is executed (unless in the case of a renewal or extension, the rent
payable during such renewal term or a formula or other method to compute such
rent has been specified in the original Lease), (iii) is entered with a tenant
that is an independent third party not affiliated with Chargor and is the result
of an arms-length transaction, and (iv) will not have a materially adverse
effect on the value of the Charged Premises taken as a whole. All proposed
Leases which do not satisfy the requirements set forth in this Section are
subject to Chargee's prior written approval (which approval shall not be
unreasonably withheld or delayed) at Chargor's expense (including reasonable
fees for Chargee's solicitors, if required), provided that any restrictions on
assignment and subletting of the Charged Premises are subject to the rights of
the tenant under the Ply Gem Lease or an Acceptable Replacement Lease and the
terms and conditions thereof. Chargor shall promptly deliver to Chargee a copy
of each Lease entered after the date of this Charge, which copies shall be
deemed to be certified by Chargor to Chargee as complete and accurate copies,
together with Chargor's certification that it has satisfied all of the
conditions of this Subsection. Chargee's acceptance of a copy of any Lease shall
not be deemed a waiver of the requirements of this Section if the Lease is not
in compliance herewith. Chargee acknowledges receipt and approval of the Ply Gem
Lease, which Ply Gem Lease shall constitute one of the Leases.

(2) As long as the Lease is not a Major Lease and except as otherwise provided
in this Section, Chargor may, without Chargee's prior written consent, (i)
amend, supplement, waive or terminate the terms of any Lease (including without
limitation shortening the lease term, reducing rents, granting rent abatements,
or accepting a surrender of all or any portion of the leased space), (ii) cancel
or terminate any Lease, or (iii) subject to Subsection 22(3) below, amend,
supplement, waive or terminate the terms of any guaranty, letter of credit or
other credit support with respect to any Lease; provided that, in each case,
such action (taking into account the planned alternative use of the affected
space in the case of termination, rent reduction, surrender of space or
shortening of term) does not have a materially adverse effect on the value of
the Charged Premises taken as a whole and provided further that such Lease, as
amended, supplemented or waived is otherwise in compliance with the requirements
of this Charge and any lease subordination agreement binding upon the Chargee
with respect to such Lease. A termination of a Lease (other than a Major Lease)
with a tenant who is in default beyond applicable notice and grace/cure periods
shall not be considered action which has a material adverse effect on the value
of the Charged Premises taken as a whole. Any action which does not satisfy the
requirements set forth in this subsection shall be subject to Chargee's prior
written approval at Chargor's expense (including reasonable fees for Chargee's
solicitors, if required).

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                                                                             47.

Chargor shall promptly deliver to Chargee a copy of all instruments documenting
the action taken, which copies shall be deemed to be certified by Chargor to
Chargee as complete and accurate copies, together with Chargor's certification
that it has satisfied all of the conditions of this Subsection. Chargee's
acceptance of a copy of any such document shall not be deemed a waiver of the
requirements of this subsection if such action is not in compliance herewith.

(3) Chargor (i) shall observe and perform all obligations imposed upon the
landlord under the Leases and shall not do or permit to be done anything to
impair the value of any of the Leases as security for the Loan; (ii) upon
Chargee's request, shall promptly send copies to Chargee of all notices of
default which Chargor shall send or receive under any Lease; (iii) shall
diligently enforce in a commercially reasonable manner all of the material
terms, covenants and conditions contained in the Leases on the tenant's part to
be observed or performed, including but not limited to those items contained in
the Ply Gem Lease or an Acceptable Replacement Lease; provided, however, that
Chargor may, in its sole discretion, waive any breach by the tenant under the
Ply Gem Lease or an Acceptable Replacement Lease of any financial/operating
covenants or reporting requirements in the Ply Gem Lease or an Acceptable
Replacement Lease; (iv) shall not collect any of the rents more than one (1)
month in advance of the date when due under the lease (provided that a security
deposit shall not be deemed rent collected in advance and provided further that
rent under the Ply Gem Lease or an Acceptable Replacement Lease may be collected
no more than three (3) months in advance); (v) shall not execute any other
assignment of the landlord's interest in any of the Leases or the rents; and
(vi) shall not consent to any assignment of, or subletting under, any Lease not
in accordance with express terms thereof, without Chargee's prior written
consent.

(4) For purposes of this Charge, a "Major Lease" shall mean any Lease or Leases
to a single tenant or related tenants which, in the aggregate, (i) provide for
rental income representing ten percent (10%) or more of the total rental income
for the Charged Premises, or (ii) cover ten percent (10%) or more of the total
rentable space of the Charged Premises. Chargee shall review and approve such
leases in a reasonable and timely period.

(5) Notwithstanding any provision of this Section 22, in any circumstance where,
pursuant to the terms of the Ply Gem Lease or an Acceptable Replacement Lease,
Chargor's consent to any action under the Ply Gem Lease or an Acceptable
Replacement Lease shall not be unreasonably withheld or delayed, and such action
requires the consent of the Chargee, the Chargee's consent to such action shall
likewise not be unreasonably withheld or delayed. If Chargor submits to Chargee
a written request for approval with respect to a proposed Lease (or a proposed
extension, modification or expansion of an existing Lease) and Chargee fails to
approve or disapprove any such action within 15 Business Days after Chargee
receives from Chargor such request together with a copy of the final version of
such proposed Lease (or proposed extension, modification or expansion of an
existing Lease), such action shall be deemed approved, provided that Chargee
will only be deemed to have given such approval if, and only if, such request
includes all of the supporting documentation reasonably necessary for Chargee to
make a decision regarding such request, as determined by Chargee, and includes
the following in all capital, bolded, block letters on the first page thereof:

            "THE FOLLOWING REQUEST REQUIRES A RESPONSE
            WITHIN 15 BUSINESS DAYS OF RECEIPT. FAILURE TO

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                                                                             48.

            DO SO WILL BE DEEMED AN APPROVAL OF THE REQUEST."

(6) Chargee acknowledges that Chargor may enter into certain landlord waivers
with respect to CWD WINDOWS AND DOORS, INC.'s equipment, personal property and
inventory located in, on and around the Charged Premises, and that Chargor shall
be entitled to enter into landlord waivers in the future without Chargee's
consent so long as they are entered into in a form approved in advance by
Chargee and in the normal course of business and contain customary provisions
and otherwise reasonably acceptable to Chargee requiring the person, firm or
entity that finances and/or leases CWD WINDOWS AND DOORS, INC.'s furniture,
fixtures and equipment to promptly remove CWD WINDOWS AND DOORS, INC.'s
furniture, fixtures and equipment within a reasonable period of time after a
default occurs under the Ply Gem Lease. In addition, Chargor shall be entitled
to enter into a consent (and Chargee shall also execute such consent if
requested by Chargor) to any encumbrance by CWD WINDOWS AND DOORS, INC. of its
leasehold interest so long as such consent contains reasonable and customary
landlord protections. Chargee has no obligation to enter into a nondisturbance
or recognition agreement with any such leasehold mortgagee.

SECTION 23 - RIGHTS OF CHARGEE SHALL BE SEPARATE - EXTENSIONS

23.1 The rights of the Chargee arising under this Charge shall be separate,
distinct and cumulative and, except as expressly provided herein, none of them
shall be in exclusion of the other and no act of the Chargee shall be construed
as an election to proceed under any one provision herein to the exclusion of any
other provision, anything herein or otherwise to the contrary notwithstanding.

23.2 No extension of time given by the Chargee to the Chargor or anyone claiming
under the Chargor, shall in any way affect or prejudice the rights of the
Chargee against the Chargor or any person liable for payment of the monies
hereby secured.

SECTION 24 - NON-TRANSFERABILITY, PARTIAL DISCHARGE AND NO SUBSEQUENT
ENCUMBRANCING

24.1 The Chargor or any beneficial owner of the Charged Premises shall not
either directly or indirectly sell, convey, transfer, mortgage, grant
encumbrance, charge, pledge, assign or dispose of the legal or beneficial
interest of the Charged Premises or any part thereof or the interest of the
Chargor in the Charged Premises without the prior written consent of the
Chargee, which consent may be withheld by the Chargee in its sole and absolute
discretion.

24.2 The Chargor shall not, without the prior written consent of the Chargee,
which consent may be withheld by the Chargee in its sole and absolute
discretion, create or permit to exist any mortgage, pledge, charge, lien,
assignment by way of security, hypothecation, security interest or other
encumbrance affecting the Charged Premises, other than this Charge and the
Security. Notwithstanding the foregoing, intra-company debt provided by an
Affiliate of Chargor shall be allowed provided such debt is subordinate to the
Loan and not secured by the Charged Premises.

24.3 Notwithstanding the provisions of this Section 24 to the contrary, the
Charged Premises may be sold and transferred with the prior written consent of
the Chargee in the case of a

<PAGE>
                                                                             49.

proposed transferee whose entity status, creditworthiness and management ability
meet standards consistently applied by the Chargee for approval of Chargors for
similar properties under mortgage loans secured by similar properties, provided
that (i) only two (2) such transfers shall be permitted during the term of the
Charge, (ii) prior to the effective date of the transfer, the transferee shall
execute and deliver to Chargee a written assumption agreement in form and
substance acceptable to Chargee in its sole discretion, (iii) a transfer fee
equal to 1.0% of the Loan amount (except that with respect to any transfer of
the Charged Premises to an Affiliate of Chargor, the assumption fees shall be
waived) plus all costs incurred by the Chargee relating to the proposed transfer
shall be paid by Chargor to Chargee upon notice being given to Chargor of
approval of the proposed transfer, including, without Limitation, its solicitors
fees, accountants fees, and fees or costs charged by any Rating Agencies, (iv)
no transfer shall be permitted hereunder if an Event of Default, or an event
which with the giving of notice or lapse of time or both could become an Event
of Default, has occurred and is continuing, or if a default under the Ply Gem
Lease or an Acceptable Replacement Lease (as defined therein) has occurred and
is continuing, (v) such transferee shall be a single purpose entity if required
by Chargee, and (vi) Chargee may require that written confirmation be obtained
from one or more Rating Agencies that the transfer will not result in a
downgrade of any securities which may have been issued in connection with a
securitization of the Loan, In connection with such transfer, if a transferee of
creditworthiness acceptable to Chargee, in its sole discretion, assumes all
obligations of Guarantor pursuant to an assumption agreement and executes an
environmental indemnity and a guarantee acceptable to Chargee in its sole
discretion, then from and after the date of such assignment, Chargee shall
release Guarantor from all obligations thereafter accruing under the Charge, but
not for obligations under the Charge which accrued prior to the date of the
transfer.

24.4 Notwithstanding any provisions of this Section 24.1 to the contrary, and
provided that no Event of Default has occurred and is continuing under the
Charge, Chargor and Guarantor shall be permitted at any time and from time to
time to transfer or convey (through merger or otherwise) their interests in
Chargor and Chargor shall be entitled to transfer the Property, as applicable,
to any Affiliate of either of them, provided that following the transfer any new
guarantor or guarantors shall satisfy the Net Worth Requirement, without payment
of any prepayment or transfer fee so long as such transfer does not result in a
downgrade, qualification or withdrawal of securities and provided that any
transferee of the Charged Premises is a single purpose, bankruptcy remote entity
(based upon Chargee's review of the transferee's organizational structure, and
as evidenced by a non-consolidation opinion to be delivered at Chargee's request
and in form and substance reasonably acceptable to Chargee). As used herein, the
term "Affiliate" refers to another W.P. Carey Parent (as hereinafter defined) or
to an entity which controls, is controlled by or is under common control with
Corporate Property Associates 14 Incorporated, Corporate Property Associates 15
Incorporated, Corporate Property Associates 12 Incorporated, or their
successors, or the Guarantor or any other funds which is a member of the W.P.
Carey family of funds (each, a "W.P. Carey Parent"). In connection with the
transfer of the Property or interests in Chargor to any Affiliate, if the W.P.
Carey Parent of such Affiliate (i) assumes all of the obligations of Guarantor
pursuant to an assumption agreement satisfactory to Chargee, in its sole
discretion, which assumption agreement provides, among other things for the
assumption of all liabilities of whatever nature in connection with the Loan
accruing from and after the date of such transfer, and for waivers of any and
all defences in connection with such liabilities and obligations under the
Charge and in connection with the assumption and (ii) such transferee delivers
to Chargee an opinion of counsel as to the enforceability of such assumption

<PAGE>
                                                                             50.

and the waivers of defences thereunder, and a non-consolidation opinion, each in
form and substance satisfactory to Chargee, in its sole discretion, then upon
such transfer, Chargee shall release Guarantor from all liabilities under the
Charge which arise with respect to matters that occur after, but not prior to,
such transfer, and (iii) the new W.P. Carey Parent satisfies the Net Worth
Requirement. Chargor agrees to pay all of Chargee's expenses incurred in
connection with reviewing and documenting a transfer (including, without
limitation, the costs of obtaining rating confirmations if required), which
amounts must be paid by Chargor whether or not the proposed transfer is
approved, if approval is required. Upon Chargor's failure to pay such amounts,
and in addition to Chargee's remedies for Chargor's failure to perform, the
unpaid amounts shall be added to principal, shall bear interest at the default
rate until paid in full, and payment of such amounts shall be secured by the
Security and other collateral given to secure the Charge.

24.5 SALE/ENCUMBRANCE DEFINED. A sale, conveyance, transfer, mortgage, grant,
encumbrance, charge, pledge or assignment within the meaning of this Section 24
shall be deemed to include, but not be limited to (a) an installment sales
agreement wherein Chargor agrees to sell the Charged Premises or any part
thereof for a price to be paid in installments; (b) an agreement by Chargor
leasing all or a substantial part of the Charged Premises for other than actual
occupancy by a space tenant thereunder or a sale, assignment or other transfer
of, or the grant of a security interest in, Chargor's right, title and interest
in and to any Leases or any Rents; (c) if Chargor or any Guarantor of Chargor is
a corporation, or if Chargor is a limited partnership or limited liability
company and its general partner or managing member (or if no managing member,
any member), respectively, is a corporation, (i) the merger, amalgamation or
voluntary or involuntary sale, conveyance or transfer of such corporation's
shares (or the shares of any corporation directly or indirectly controlling such
corporation by operation of law or otherwise) or the creation or issuance of new
shares by which an aggregate of more than 49% of such corporation's shares shall
be vested in a party or parties who are not now owners of more than 49% of such
corporation's shares or (ii) the pledge of any such corporation's shares; (d) if
Chargor is a general partnership, limited partnership or joint venture, or if
Chargor is a limited partnership or limited liability company and its general
partner or managing member (or if no managing member, any member), respectively,
is a general partnership, limited partnership or joint venture: (i) the change,
removal or resignation of a general partner, or (ii) or the voluntary or
involuntary sale, conveyance, transfer or pledge of the partnership interest of
any general partner or limited partner or of any profits or proceeds relating to
such partnership interest, which, whether singly or in the aggregate, result in
more than 49% of the beneficial interests in Chargor, or the profits or proceeds
relating thereto, having been transferred or pledged or (iii) the creation or
issuance of new limited partnership interests, by which an aggregate of more
than 49% of such limited partnership interests are held by parties who are not
currently limited partners; and (e) if Chargor is a limited liability company or
if Chargor is a limited partnership or limited liability company and its general
partner or managing member (or if no managing member, any member) is a limited
liability company: (i) the change, removal or resignation of any managing member
(or if no managing member, any member), or (ii) the voluntary or involuntary
sale, conveyance, transfer or pledge of the membership interest of a managing
member or of any membership interest of any other member or any profits or
proceeds relating to any such membership interest, which, whether singly or in
the aggregate, result in more than 49% of the beneficial interests in Chargor,
or the profits or proceeds relating thereto, having been transferred or pledged,
or (iii) the creation or issuance of new membership interests, by which an

<PAGE>
                                                                             51.

aggregate of more than 49% of such membership interests are held by parties who
are not currently members.

24.6 CERTAIN PERMITTED TRANSFERS. Notwithstanding the foregoing, the following
transfers shall not be deemed to be a sale, conveyance, mortgage, grant,
encumbrance, pledge, assignment or transfer within the meaning of this Section
24:

(a) except as otherwise permitted in the following clause (c), transfers of
Equity Interests which, in the aggregate over the term of the Loan (i) do not
exceed forty-nine percent (49%) of the total interests in Chargor or in
Guarantor, as applicable; (ii) do not result in any Person holding an Equity
Interest in Chargor which exceeds forty-nine percent (49%) of the total Equity
Interests in Chargor and (iii) do not result in a change of control;

(b) transfers with respect to any Person whose shares are traded on a nationally
recognized stock exchange;

(c) transfers which are otherwise permitted in accordance with this Section 24;

(d) Permitted Encumbrances;

(e) all transfers of worn out or obsolete furnishings, fixtures or equipment
that are promptly replaced with property of equivalent value and functionality;

(f) transfers which are otherwise permitted in accordance with Section 22;

(g) the sale, transfer, assignment, or hypothecation of a shareholder interest
by a current or future shareholder in the Guarantor, or any Affiliate that shall
become the Guarantor, or the issuance of additional shares by any of the
foregoing;

(f) transfer by devise or descent or by operation of law upon the death of a
stockholder of Chargor or any Guarantor, and

(g) a sale, transfer, assignment or hypothecation of a shareholder interest in
Chargor, by a current shareholder, to an immediate family member (i.e., parents,
spouses, siblings, children or grandchildren) of such shareholder, or to a trust
for the benefit of an immediate family member of such shareholder.

24.7 CHARGEE'S RIGHTS. Chargee reserves the right to condition the consent
required hereunder upon a modification of the terms hereof and on assumption of
the Commitment Letter, this Charge and the other Security as so modified by the
proposed transferee, payment of a transfer fee and all of Chargee's expenses
incurred in connection with such transfer, or such other conditions as Chargee
shall determine in its sole discretion to be in the interest of Chargee. Chargee
shall not be required to demonstrate any actual impairment of its security or
any increased risk of default hereunder in order to declare the Loan immediately
due and payable upon Chargor's sale, conveyance, mortgage, grant, encumbrance,
pledge, assignment, or transfer of the Charged Premises without Chargee's
consent. This provision shall apply to every sale, conveyance, mortgage, grant,
encumbrance, pledge, assignment, or transfer of the Charged Premises regardless
of whether voluntary or not, or whether or not Chargee has consented to any
<PAGE>

                                                                             52.

previous sale, conveyance, mortgage, grant, encumbrance, pledge, assignment, or
transfer of the Charged Premises.

SECTION 25 - DISCHARGE AND RENEWAL

25.1 Any discharge of this Charge shall be prepared by the Chargee and the
Chargee shall have a reasonable time after the payment of the Charge monies
within which to prepare and execute such discharge and all reasonable legal and
other expenses for the preparation, execution and registration of such discharge
and/or documents, as the case may be, shall be borne by the Chargor.

25.2 Subject to Section 5.1 hereof, upon payment of all amounts secured by this
Charge, the Chargor shall be entitled to receive and the Chargee shall provide a
discharge of this Charge and the Security within a reasonable period of time
after the request therefor.

SECTION 26 - FINANCIAL DATA

26.1 Chargor shall keep adequate books and records of account with respect to
the operation of the Charged Premises, in accordance with methods acceptable to
Chargee in its sole discretion, consistently applied, including, without
limitation, balance sheets, profit and loss statements, rent rolls and tax
returns, and if required by Chargee shall furnish the following to Chargee:

(1) within thirty (30) days after the end of each fiscal quarter, quarterly
certified rent rolls signed and dated by Chargor, detailing the names of all
tenants of the Improvements, the portion of Improvements occupied by each
tenant, the base rent and any other charges payable under each Lease, security
deposits and the term of each Lease, including the expiration date, the extent
to which any tenant is in default under any Lease which is not a residential
lease, and any other information as is reasonably required by Chargee;

(2) if at any time the Ply Gem Lease or an Acceptable Replacement Lease is not
in effect, within thirty (30) days after the close of each fiscal quarter, a
quarterly operating statement of the Charged Premises detailing the total
revenues received, total expenses incurred, total cost of all capital
improvements, total debt service and total cash flow, together with a balance
sheet for such quarter, to be prepared by Chargor in the form required by
Chargee and, if available, any quarterly operating statement and/or balance
sheet prepared by an independent chartered accountant;

(3) within ninety (90) days after the close of each fiscal year of Chargor and
of each of the Guarantors, an annual balance sheet and profit and loss statement
of Chargor, and of each of the Guarantors, in the form required by Chargee,
prepared and certified by the respective Chargor and/or Guarantor, as
applicable;

(4) within ninety (90) days after the close of each fiscal year, an annual
certified rent roll presented on a quarterly basis consistent with the quarterly
certified rent rolls described above;

(5) if at any time the Ply Gem Lease or an Acceptable Replacement Lease is not
in effect, at least thirty (30) days prior to the start of each calendar year,
an annual operating budget

<PAGE>
                                                                             53.

presented on a quarterly basis consistent with the quarterly operating statement
described above for the Charged Premises, including cash flow projections for
the upcoming year, and all proposed capital replacements and improvements;

(6) in a timely manner, during the first year of the Loan and upon request of
Chargee thereafter, such other financial statements, including monthly operating
statements and rent rolls, as Chargee may reasonably request; and

(7) all such annual financial statements required by Chargee shall include a
balance sheet and a detailed statement of income and expenditures, a statement
of changes in financial position and supporting notes and schedules.

All reports or documentation required under this Section to be provided to
Chargee shall be certified as true, complete and accurate by Chargor.

(8) Notwithstanding anything to the contrary in this Section 26 if such items
requested pursuant to Subsections 26.1(1)-(7) are delivered at any other time
other than that required under Subsection 26.1(1)-(7) to Chargor by the tenant
under the Ply Gem Lease or an Acceptable Replacement Lease, Chargor will deliver
said items to Chargee within ten (10) days of receipt thereof and Chargor shall
upon Chargee's request obtain from the tenant under the Ply Gem Lease or an
Acceptable Replacement Lease said items or other financial information as may be
required under the Ply Gem Lease or an Acceptable Replacement Lease and deliver
a copy thereof to Chargee promptly upon receipt.

26.2 Chargee and its agents shall have the right upon prior written notice to
Chargor (notice to be given unless an Event of Default has occurred and is then
continuing) to examine the records, books and other papers which reflect upon
Chargor's financial condition or pertain to the income, expense and management
of the Charged Premises. Chargee and its agents shall have the right to make
copies and abstracts from such materials. Chargor shall furnish to Chargee and
its agents convenient facilities at the Charged Premises for the examination and
audit of any such books and records at all reasonable times.

26.3 Chargee and its agents shall have the right upon prior written notice to
Chargor (notice to be given unless an Event of Default has occurred and is then
continuing) to conduct a physical inspection of the Charged Premises at all
reasonable times.

26.4 If Chargor shall fail to comply with the requirements of this Section 26
within thirty (30) days after written notice from Chargee to Chargor (which
notice shall satisfy the notice requirements of Section 20 captioned
"Acceleration" and shall not be in addition thereto), then, in addition to the
Event of Default occurring due to such failure, Chargor shall be required to pay
a penalty in the initial amount of $2,500, which penalty shall increase by an
additional $5,000 for each 30 day period for which such failure remains uncured.
To the extent such penalty remains unpaid, it shall be a charge against the
Charged Premises. In addition, Chargee shall have the right to offset any
amounts of interest earned and payable to Chargor in accordance with the terms
of this Charge or any reserve agreement for replacements, tenant improvements,
leasing commissions or any other similar escrow agreement against any such
penalty due and owing to

<PAGE>
                                                                             54.

Chargee. Such offset right shall exist regardless of whether the interest to be
credited to Chargor accrued prior to or following the imposition of the penalty.

SECTION 27 - NO MERGER OR WAIVER OF CHARGEE'S RIGHTS

27.1 The Chargor covenants and agrees with the Chargee that:

(1) The giving and taking of this Charge shall in no way merge, waive,
prejudice, suspend or affect any of the rights or remedies of the Chargee under
any Security which may be given or which may have been or may hereafter be given
in respect of the Principal Sum hereof, interest and other monies secured by
this Charge, or any part thereof, or under the Security and all rights and
remedies which the Chargee now has or may hereafter have against any one or more
persons, are hereby preserved. All payments made hereunder shall reduce pro
tanto the amount secured under the Security, and vice versa and any default
under any Security shall constitute a default under this Charge and vice versa;

(2) The taking of a judgment or judgments under any of the covenants or
obligations herein or under any Security shall not operate as a merger of the
covenants of the Chargor or affect the Chargee's right to interest at the rate
provided in this Charge on any monies due or owing to the Chargee during the
continuance of this Charge, under any of the covenants herein contained or on
any judgment to be recovered thereon;

(3) The covenant of the Chargor to pay interest shall not merge in any judgment
in respect of any covenant or obligation of the Chargor under this Charge or any
Security and such judgment shall bear interest at the Interest Rate until such
judgment and all interest thereon have been paid in full;

(4) Any waiver by the Chargee of any default by the Chargor or any omission on
the Chargee's part in respect of any default by the Chargor shall not extend to
or be taken in any manner whatsoever to affect any subsequent default by the
Chargor or the rights resulting therefrom.

SECTION 28 - LIMITATIONS ON PERSONAL LIABILITY.

28.1 NONRECOURSE OBLIGATION. Except as otherwise expressly provided in this
Section 28, Chargee shall not enforce the liability and obligation of Chargor to
perform and observe the obligations contained in this Charge by any action or
proceeding wherein a money judgment shall be sought against Chargor, except that
Chargee may bring, and name Chargor as defendant in, any sale procedure,
foreclosure action, action for specific performance or other action or
proceeding to enable Chargee to enforce and realize upon this Charge or the
Security and the interest in the Charged Premises and Rents and any other
collateral given to Chargee created by this Charge and the Security; provided,
however, that any judgment in any such action or proceeding shall be enforceable
against Chargor only to the extent of Chargor's interest in the Charged
Premises, in the Rents and in any other collateral given to Chargee.

28.2 PERSONAL LIABILITY FOR CERTAIN LOSSES. Notwithstanding Section 28.1 above,
Chargor shall be personally liable for any loss, cost, liability, claim, damage
or expense sustained or incurred by Chargee arising out of or attributable to
any of the following:

<PAGE>
                                                                             55.

      (a)   fraud or material misrepresentation or failure to disclose a
            material fact by Chargor or any other party or entity in connection
            with the application for the Loan or the execution and delivery of
            this Charge or any of the Security, or in any certificate, report,
            financial statement or other instrument or document furnished to
            Chargee in connection herewith or hereafter, or in connection with
            any request for any action or consent by Chargee made during the
            term of this Charge;

      (b)   failure by Chargor to comply with any of the provisions of Section
            24 of the Charge (captioned: Non Transferability, Partial Discharge
            and No Subsequent Encumbrancing);

      (c)   failure by Chargor to comply with any of the provisions of Section
            11.1(16) of this Charge (captioned: Single Purpose Entity), limited,
            however, to $1,416,667, in lawful money of Canada;

      (d)   fees, commissions or other payments and distributions made by
            Chargor to any affiliate, member, general partner, principal or
            beneficial owner of Chargor in violation of the terms of this
            Charge, limited, however, to $1,416,667, in lawful money of Canada;

      (e)   misapplication or misappropriation by Chargor of any insurance
            proceeds or condemnation awards due to Chargee under this Charge;

      (f)   misapplication or misappropriation of tenant security deposits or
            other refundable deposits held by Chargor or any other party on
            behalf of Chargor in connection with Leases (as defined in this
            Charge);

      (g)   Rents received from tenants more than three months in advance or any
            misappropriation of Rents;

      (h)   physical waste of the Charged Premises, or damage to the Charged
            Premises as a result of willful or intentional misconduct, criminal
            acts or gross negligence of Chargor, its agents and property
            managers, or by any affiliate, or beneficial owner of Chargor;

      (i)   removal of all or any portion of personal property in violation of
            the terms of this Charge; and

      (j)   any seizure, forfeiture or loss of all or any part of the Charged
            Property resulting from criminal acts perpetrated by Chargor, or any
            affiliate, or beneficial owner of Chargor.

28.3 NO IMPAIRMENT. Nothing contained in this Section 28 shall (a) constitute a
waiver, release or impairment of the indebtedness evidenced by this Charge or
any other obligations of Chargor under the Security or any liens, assignments or
security interests created by any of the Security; (b) affect the validity or
enforceability of any indemnity (including, without limitation, the
Environmental Indemnity Agreement, guarantee, master lease or similar instrument
made in connection with this Charge, or any Security; (c) impair Chargee's right
to name Chargor as a

<PAGE>
                                                                             56.

party defendant in any action, suit or procedure for judicial foreclosure or
sale under the Charge or any security; (d) impair Chargee's right to obtain the
appointment of a receiver; (e) impair Chargee's right to obtain a deficiency
judgment or other judgment on this Charge against Chargor if necessary to
enforce any guarantee or indemnity provided in connection with this Charge,
provided that Chargee shall enforce such judgment against Chargor only to the
extent permitted by this Charge, or (f) impair Chargee's right to obtain a
deficiency judgment or other judgment on this Charge against Chargor if
necessary to obtain any insurance proceeds or condemnation awards to which
Chargee would otherwise be entitled under this Charge provided that Chargee
shall enforce such judgment against Chargor only to the extent of the insurance
proceeds and/or condemnation awards.

28.4 NO WAIVER OF CERTAIN RIGHTS. Nothing contained in this Section shall be
deemed a waiver of any right which Chargee may have under the Bankruptcy and
Insolvency Act (Canada) to file a claim for the full amount of the indebtedness
evidenced hereby or secured by this Charge or to require that all of the
collateral shall continue to secure all of the indebtedness owing to Chargee in
accordance with this Charge and the Security.

SECTION 29 - DISTRESS - ATTORNMENT

29.1 The Chargee may distrain for arrears of interest and Principal and the
Chargor hereby waives the right to claim exemptions therefrom and agrees that
the Chargee shall not be limited in the amount for which it may distrain,
provided that the Chargee may not distrain for an amount in excess of the
aggregate of the amounts owing to the Chargee hereunder.

29.2 Subject to applicable law, the Chargor hereby attorns to the Chargee and
becomes a tenant of the Charged Premises from the day of the execution hereof at
a rental equivalent to, applicable in satisfaction of, and payable at the same
times as the payments of Principal and interest hereinbefore provided to be
paid, the legal relation of landlord and tenant being hereby constituted between
the Chargee and the Chargor; but it is hereby agreed that neither the existence
of this clause nor anything done by virtue hereof shall render the Chargee a
mortgagee in possession, or accountable for any moneys except those actually
received by it, and the Chargee may upon the happening of an Event of Default,
and compliance with the notice provisions contained herein, enter on the Charged
Premises and determine the tenancy hereby created without notice.

SECTION 30 - CONTINUING SECURITY

30.1 It is further understood and agreed that this Charge and the Security shall
stand as a continuing security to the Chargee for the payment of the Loan and
all advances hereunder and all interest, damages, costs, charges and expenses
which may become due and payable to the Chargee upon or in respect of the Loan
or any portion thereof notwithstanding any fluctuation or change in the amount,
nature or form of the Loan or in the obligations now or hereafter representing
the same or any portion thereof or in the names of the parties to the said
obligations or any of them.

<PAGE>
                                                                             57.

SECTION 31 - ASSIGNMENT, PLEDGE OR TRANSFER BY CHARGES

31.1 Chargee has the right, in its sole discretion, to transfer, pledge, sell or
assign or otherwise dispose of its interest in the Loan, this Charge and the
Security and/or servicing rights with respect thereto, to grant participations
therein (the "Participations") or to issue mortgage pass-through certificates or
other such securities (such sale and/or issuance, the "Securitization")
evidencing a beneficial interest in a rated or unrated public offering or
private placement (the "Securities"). If Chargee determines at any time to sell,
pledge, transfer or assign the Loan, this Charge and the Security, and any or
all servicing rights with respect thereto, or to grant Participations or issue
mortgage pass-through certificates or other securities constituting a
Securitization, Chargee may forward to each purchaser, transferee, assignee,
servicer, participant, investor, or their respective successors in such
Participations and/or Securities (collectively, the "Investor") or any Rating
Agency rating such Securities and each prospective Investor, all documents and
information which Chargee now has or may hereafter acquire relating to the Loan
and to Chargor or any Guarantor, and the Charged Premises (including, without
limitation, all financial statements), which shall have been furnished by
Chargor or any Guarantor, as Chargee determines necessary or desirable. Chargor
and any Guarantor agree to cooperate with Chargee in connection with any
transfer made or any Securities created pursuant to this Section, including,
without limitation, the delivery of an estoppel certificate and such other
documents as may be reasonably requested by Chargee and, upon Chargee's
reasonable request, meeting with any Rating Agency for due diligence purposes.
Chargor shall also furnish and Chargor and any Guarantor consent to Chargee
furnishing to such Investors or such prospective Investors or any Rating Agency
any and all information concerning the Charged Premises, the Leases, the
financial condition of Chargor and any Guarantor as may be requested by Chargee,
any Investor or any prospective Investor or Rating Agency in connection with any
sale, transfer or Participation.

Chargee agrees to provide Chargor with a duly completed copy of IRS Form W8-BEN
along with a certificate confirming it is not a bank. In addition, Chargee
agrees that in the event of any assignment or transfer, it will deliver to
Chargor prior to the date any payment is required to be made to it hereunder
duly completed copies of IRS Form W-8BEN, W-9, or the applicable successor form,
as the case may be, by each such assignee/transferee, so that Chargor will be
entitled to make payments under the Loan without deductions or withholding of
any United States federal income taxes. For greater certainty, in the event a
transfer or assignment is in connection with a Securitization, Chargor agrees
that it shall accept a duly completed and signed W8-IMY from the payment agent
or custodian, provided it is a qualified intermediary that has assumed both
primary withholding responsibility and liability for Form 1099 reporting and
backup withholding.

U.S. withholding tax gross up shall apply to payments of the Loan if and only if
Chargee (and its permitted successors and assigns) complies with the foregoing
conditions and requirements of this Section 31.1, failing which the gross up
provision shall have no effect.

Notwithstanding any of the foregoing, Chargee acknowledges and agrees that in
the event it assigns the Loan to a non-resident lender, it acknowledges and
agrees that if Chargor shall be required to withhold and remit to the Canada
Revenue Agency a portion of its payment owing (subject to Canada Revenue Agency
exemption certificate) such assignee (successor lender) shall not be entitled to
any gross up of the amounts owing by Chargor hereunder as a result thereof.

<PAGE>
                                                                             58.

SECTION 32 - NOTICE

32.1 In any action, suit or proceedings for enforcing this Charge or to recover
payment of the monies hereby secured, or for the sale or foreclosure of the
Charged Premises or any part thereof, service of any notice, writ or a summons,
originating summons, statement of claim, order of court or a judge, or of any
legal or other proceedings by the Chargee, or by or pursuant to any statute,
ordinance, rule, order or practice required to be given or served, and every
notice and/or demand or request permitted or required to be served hereunder,
shall be deemed to be properly and effectively served if delivered by hand to
one or more of the respective officers or directors of the Chargor or Chargee or
deposited for overnight delivery, fee pre-paid, with any reputable overnight
courier service, or mailed by depositing the same in any post office or letter
box, in Canada enclosed in a postage pre-paid envelope, registered, addressed as
set out below, or telecopied or sent by facsimile transmission, or other similar
form of communication (collectively "Electronic Communication") to the intended
recipient at:

If to the Chargor, to:

                  PG-NOM (ALBERTA), INC.
                  c/o W.P. Carey & Co. LLC
                  50 Rockefeller Plaza
                  New York, New York USA
                  10020

                  Attention: Director, Asset Management
                  Fax Number: (212) 492-8922

If to the Chargee, to:

                  GMAC Commercial Mortgage of Canada, Limited
                  70 York Street, Suite 710
                  Toronto, Ontario Canada
                  M5J 1S9

                  Attention: Servicing Vice-President
                  Fax Number: (416) 642-2782

32.2 The Chargor and the Chargee may change their respective addresses for
service by giving the other party hereto written notice thereof as provided in
Section 32.1 hereof. Notice shall be deemed to have been received on the date of
delivery, where applicable, or, one (1) Business Day after having been timely
deposited for overnight delivery or, where mailed in Canada, five (5) Business
Days after the date of registration of the postage prepaid envelope, containing
a notice, demand, request or document except in the event of a mail strike or
reasonably anticipated or actual disruption of postal service which would
prevent or substantially delay receipt of anything mailed in the manner
aforesaid, in which case notice, for the duration or such mail strike or
reasonably anticipated or actual disruption of postal service, shall be effected
by personal delivery, or, when sent by Electronic Communication, on the Business
Day next following the day on which it was sent.

<PAGE>
                                                                             59.

SECTION 33 - MISCELLANEOUS

33.1 If any provision of this Charge or the application thereof to any
circumstances shall be held to be invalid or unenforceable, it shall be deemed
severed herefrom and the remaining provisions of this Charge, or the application
thereof to other circumstances, shall not be affected thereby and shall be held
valid and enforceable to the full extent permitted by law. In particular, and
without limiting the generality of the foregoing, to the extent any and all
amounts due pursuant to Section 4 hereof may be deemed to be in excess of what
is permissible by law, any such excess shall be deemed not to be due under this
Charge.

33.2 There shall be no allowance or deduction for deemed re-investments with
respect to any amounts paid to the Chargee on account of interest under the
Loan.

33.3 Wherever used in this Charge, unless the context clearly indicates a
contrary intent as unless or otherwise specifically provided herein, the word
"Chargor" shall mean "Chargor and/or subsequent owner or owners of the Charged
Premises", the word "Chargee" shall mean "Chargee or any subsequent holder or
holders of this Charge", the word "person" shall mean "an individual,
corporation, firm, bank, partnership or unincorporated association".

33.4 The descriptive headings of the several Sections of this Charge are
inserted for convenience only and shall not control or affect the meaning or
construction of any of the provisions hereof.

33.5 Wherever the singular number or masculine gender is used in this Charge,
the same shall be construed as including the plural and feminine or a body
corporate, respectively, and vice versa, where the fact or context so requires;
and the successors and assigns of any party executing this Charge are bound by
the covenants, agreements, stipulations and provisos herein contained. The
covenants, agreements, stipulations and provisos herein stated shall, except as
otherwise limited hereby, be in addition to those granted or implied by statute.

33.6 This Charge shall be construed and enforceable under and in accordance with
the laws of the Province of Alberta and the Chargor hereby irrevocably attorns
to the jurisdiction of the Courts sitting at Calgary, Alberta.

33.7 The Chargor shall at all times, do, execute, acknowledge and deliver or
cause to be done, executed, acknowledged or delivered all such further acts,
deeds, transfers, assignments, security agreements and assurances as the Chargee
may reasonably require in order to give effect to the provisions hereof and for
the better granting, transferring, assigning, charging, setting over, assuring,
confirming or perfecting the Charge and the priority accorded to them by law or
under this Charge.

33.8 This Charge, and the Security provided to the Chargee by the Chargor in
connection with the Loan, the Undertaking and any other undertakings provided by
the Chargor to the Chargee, and the Commitment Letter represent the entire
agreement between the Chargor and Chargee with respect to the subject matter
hereof. When there is any conflict between the terms of the Commitment Letter
and the terms of this Charge, the terms of this Charge shall prevail.

33.9 For better securing to the Chargee the repayment in the manner set out
above of the Principal Sum and Interest (and other amounts hereby secured), the
Chargor mortgages to the Chargee all its estate and interest in the Lands.

<PAGE>
                                                                             60.

IN WITNESS WHEREOF the Chargor has caused this Charge to be duly executed as of
this 24th day of November, 2004.

                                  PG-NOM (ALBERTA), INC.

                                  By:  /s/ Peter Kaplan
                                      -------------------------------------
                                       Name: Peter Kaplan
                                       Title: Vice President

                                  I have authority to bind the Corporation

<PAGE>

                                  SCHEDULE "A"

                           Legal Description of Lands

Those parcels of land situate in the Province of Alberta described as follows:

FIRSTLY:        PLAN 316 GV
                BLOCK 1
                LOT 1
                EXCEPTING THE CORNER CUT ON PLAN 7710238
                EXCEPTING THEREOUT ALL MINES AND MINERALS

SECONDLY:       PARCEL 1

                PLAN 316GV
                BLOCK 6
                LOT 3
                EXCEPTING THEREOUT ALL MINES AND MINERALS

                PARCEL 2

                PLAN 316GV
                BLOCK 6
                LOTS 4 AND 5
                EXCEPTING THEREOUT ALL MINES AND MINERALS

THIRDLY:        PLAN 316GV
                BLOCK 6
                LOT 1
                EXCEPTING THEREOUT ALL MINES AND MINERALS

FOURTHLY:       PARCEL 1

                PLAN 316GV
                BLOCK 6
                LOT 6
                EXCEPTING THEREOUT ALL MINES AND MINERALS

                PARCEL 2

                PLAN 316GV
                BLOCK 6
                LOTS 7, 8, and 9
                EXCEPTING THEREOUT ALL MINES AND MINERALS

<PAGE>
                                                                             62.

                PARCEL 3

                PLAN 316GV
                BLOCK 6
                THE NORTH HALF OF LOT 10
                EXCEPTING THEREOUT ALL MINES AND MINERALS

                PARCEL 4

                PLAN 316GV
                BLOCK 6
                THE SOUTH HALF OF LOT 10
                EXCEPTING THEREOUT ALL MINES AND MINERALS

                PARCEL 5

                PLAN 316GV
                BLOCK 6
                LOT 11
                EXCEPTING THEREOUT ALL MINES AND MINERALS

                PARCEL 6

                PLAN 316GV
                BLOCK 6
                LOT 12
                EXCEPTING THEREOUT THAT PORTION OF LOT 12 FOR CORNER
                CUT PLAN 7710195
                EXCEPTING THEREOUT ALL MINES AND MINERALS

FIFTHLY:        PARCEL 1

                PLAN 5998JK
                BLOCK 19
                LOT 15
                EXCEPTING THEREOUT ALL MINES AND MINERALS

                PARCEL 2

                PLAN 5998JK
                BLOCK 19
                LOTS 16 AND 17
                EXCEPTING THEREOUT ALL MINES AND MINERALS

                PARCEL 3

                PLAN 5882AB
                BLOCK 19

<PAGE>
                                                                             63.

                THE SOUTH HALF OF LOT C
                EXCEPTING THEREOUT ALL MINES AND MINERALS

<PAGE>

                                  SCHEDULE "B"

                             Permitted Encumbrances

"Permitted Encumbrances" means any of the following:

1.    liens for taxes, assessments, governmental charges or levies not at the
      time due or delinquent;

2.    title defects or irregularities existing at the date of execution of this
      Charge which in the aggregate do not materially impair the ownership and
      operation of the Lands;

3.    easements, rights of way or other similar rights in land existing at the
      date of execution of this Charge or created after the date of this Charge
      which in the aggregate do not materially impair the ownership and
      operation of the Lands;

4.    any reservations, limitations, provisos and conditions expressed in any
      original grant from the Crown;

5.    leases of the Lands, or portions thereof in favour of tenants, including
      the caveat in respect of the Ply Gem Lease registered against the Lands as
      041-339-150, charges of interests of tenants limited only to the tenant's
      interest in the Lease and the tenant's personal property which are
      registered subsequent to this Charge and agreements with Permitted
      Leasehold Mortgagees confirming the provisions of Section 35 of the Lease
      and to the extent that a Permitted Leasehold Mortgagee requires a
      deviation from the provisions of Section 35 of the Lease which the Chargor
      is prepared to accept, the approval of the Chargee shall be required for
      such deviation but shall not be unreasonably withheld;

6.    undetermined or inchoate liens and charges incidental to current
      operations which have not, at the date of execution of this Charge, been
      filed pursuant to law against the Chargor or delivered to the Chargor or
      which relate to obligations not due or delinquent;

7.    any rights of expropriation, access or any other similar right conferred
      or reserved by or in any statute of Canada or Alberta;

8.    municipal by-laws and regulations affecting the use and occupancy of the
      Lands; and

9.    the encroachments into adjoining public roads and lanes as revealed by the
      survey of the Lands, and the following encroachments which are not
      revealed by the survey:

      (a)   encroachments of two bollards, by .21 metres and .15 metres
            respectively, unto 20th Ave SE from Lot 5;

      (b)   encroachment of fence and asphalt by .14 metres unto 20th Ave SE
            from Lot 6;

<PAGE>
                                                                             65.

      (c)   encroachment of planter by 2.04 metres unto 50th St SE from Lots
            7/8;

      (d)   encroachment of concrete retaining wall by .13 metres unto 50th St
            SE from Lots 9 and N/12 of Lot 10; and

      (e)   encroachment of concrete retaining wall by .12 metres unto 50th St
            SE from S 1/2 of Lot 10/Lot 11,

      and agreements with the municipality with respect to such encroachments,
      substantially in the form of the draft agreements provided to the Chargee
      prior to the date hereof.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00096-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00096-of-00352.parquet"}]]