Document:

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                                                                    EXHIBIT 10.9

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MEMORANDUM OF AGREEMENT OF LEASE ENTERED INTO AT THE CITY AND DISTRICT OF
MONTREAL IN THE PROVINCE OF QUEBEC ON THE ______ DAY OF _____________, 19 ____
(hereinafter referred to as the "Lease")

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BY AND BETWEEN:                         CITE DE L'ILE DEVELOPMENT INC., a body
                                        politic and corporate, duly incorporated
                                        according to law and having its head
                                        office in the City of Montreal, Province
                                        of Quebec, herein acting and represented
                                        by Douglas Pascal, its President, duly
                                        authorized (hereinafter referred to as
                                        the "Landlord")

AND:                                    NUANCE COMMUNICATIONS LIMITED, a body
                                        politic and corporate, duly incorporated
                                        according to law and having its head
                                        office in the City of Halifax, Province
                                        of Nova Scotia, herein acting and
                                        represented by Araham Smith its Vice
                                        President and CFO duly authorised
                                        (hereinafter referred to as the
                                        "Tenant")
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                                 OFFICE LEASE
                                 ------------
                                     INDEX
                                     -----

<TABLE>
<S>                                                                     <C>
Section I.       DEFINITIONS                                             2
------- -

Section II.      LEASE                                                   7
------- --

Section III.     TERMINATION                                             7
------- ---

Section IV.      RENT                                                    7
------- --

Section V.       RENTALS                                                 7
------- -

Section VI.      REAL ESTATE TAXES, TAX ON CAPITAL AND OPERATING
------- --
                 EXPENSES                                                8

Section VII.     USE OF PREMISES                                        10
------- ---

Section VIII.    UTILITIES AND ADDITIONAL CHARGES                       10
------- ----

Section IX.      SERVICES                                               11
------- --

Section X.       THERE IS NO SECTION X IN THIS LEASE                    12
------- -

Section XI.      ASSIGNMENT AND SUBLETTING                              12
------- --

Section XII.     READINESS FOR OCCUPATION                               15
------- ---

Section XIII.    TENANT CARE                                            15
------- ----

Section XIV.     ALTERATIONS, ADDITIONS, IMPROVEMENTS AND
------- ---
                 REPAIRS                                                15

Section XV.      MAJOR REPAIRS                                          17
------- --

Section XVI.     ACCESS TO PREMISES                                     18
------- ---

Section XVII.    PROTECTION OF EQUIPMENT                                18
------- ----

Section XVIII.   COMPLIANCE WITH LAWS AND INDEMNIFICATION               18
------- -----

Section XIX.     SECURITY DEPOSIT                                       20
------- ---

Section XX.      FIRE AND DESTRUCTION OF PREMISES                       20
------- --

Section XXI.     NON-RESPONSIBILITY OF LANDLORD                         21
------- ---

Section XXII.    INSURANCE                                              21
------- ----
</TABLE>
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<TABLE>
<S>                                                                     <C>
Section XXIII.   DEFAULT                                                23
------- -----

Section XXIV.    MODIFICATION                                           25
------- ----

Section XXV.     ADDITIONAL PROVISIONS                                  26
------- ---

Section XXVI.    RULES AND REGULATIONS                                  28
------- ----

Section XXVII.   MORTGAGES AND SUBORDINATION                            29
------- -----

Section XXVIII.  SCHEDULES                                              30
------- ------

Section XXIX.    ENGLISH LANGUAGE                                       30
------- ----
</TABLE>
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                                                                               2

THIS AGREEMENT WITNESSETH:

SECTION I.  DEFINITIONS
------- --  -----------

1.01  As used herein, the following expressions shall have the following
meanings:

      (a)   BASE OPERATING EXPENSES: Operating Expenses incurred for the fiscal
            year ended April 30, 1999.

      (b)   BASE REAL ESTATE TAXES: Real Estate Taxes levied for the calendar
            year 1999.

      (c)   BASE TAX ON CAPITAL: Tax on Capital imposed for the fiscal year
            ended April 30, 1999.

      (d)   BUILDING: the building(s), structure(s) and improvements constructed
            on the Land, including Landlord's equipment, systems and fixtures
            therein.

      (e)   BUSINESS DAYS: Mondays to Fridays inclusive, legal and statutory
            holidays excepted.

      (f)   BUSINESS HOURS: 8:00 A.M. to 6:00 P.M. during Business Days or such
            other times as may be designated by Landlord from time to time.

      (g)   COMMENCEMENT DATE: January 1, 2000.

      (h)   ELECTRICAL AMOUNT: the difference, if any, between nine thousand
            seven hundred ninety-six dollars and fifty cents ($9,796.50) per
            annum increased in the same ratio as increases in Hydro Quebec rates
            (and applicable taxes) occur subsequent to the 1 st day of October,
            1999 and nine thousand seven hundred ninety-six dollars and fifty
            cents ($9,796.50) per annum.

      (i)   LAND: that certain emplacement more fully described in SCHEDULE "A".

      (j)   LEASE YEAR: in respect of the first Lease Year, the period of time
            commencing on the Commencement Date and expiring on the last day of
            the month of December next following; thereafter, each Lease Year
            shall consist of consecutive periods of twelve (12) calendar months.
            However, the last Lease Year shall terminate upon the expiration of
            the Term or earlier termination of this Lease, as the case may be.
            Landlord may in its discretion change the Lease Year from time to
            time provided that such change will not increase Tenant's liability
            for any amounts payable pursuant to this Lease.

      (k)   NOTICES: for the purpose of all notices to the Landlord, the
            Landlord's address is:

                            2000 Peel Street, Suite 900,
                            Montreal, Quebec H3A 2W5
                            Attention: The President
                            ------------------------
<PAGE>

                                                                               3

                           With a copy to:

                           2000 Peel Street, Suite 900
                           Montreal, Quebec H3A 2W5
                           Attention: General Counsel
                           --------------------------

          for the purpose of all notices to the Tenant, the Tenant's address is
          at the address of the Premises.

          Notwithstanding the foregoing, either of the parties may notify the
          other of a change of address in which event all official notices shall
          thereafter be sent to the last address of which notice is given. All
          notices required or permitted to be given by either Landlord or Tenant
          to the other shall be in writing and sent by registered mail (postage
          prepaid and return receipt requested) or delivered by bailiff. Delays
          shall be computed or measured, as the case may be, from the date of
          actual delivery of any notice referred to herein.

     (l)  OPERATING EXPENSES: all costs, charges and expenses incurred by the
          Landlord, without duplication, in connection with the operation,
          maintenance and repair of the Land and Building and by way of example
          only but without limiting the generality of the foregoing, shall
          include the following: heating, ventilating and air-conditioning
          costs, maintenance, repairs and replacements; management or
          administration fees and expenses (which fees shall be equal to five
          percent (5%) of the gross revenue derived by Landlord from the Land
          and Building); salaries, wages, medical, surgical, general welfare
          benefits (including group life insurance and pension payments),
          payroll taxes, workmen's compensation insurance contributions and
          unemployment insurance contributions for the employees of the Landlord
          (including the Building manager but excluding all executive personnel
          of the Landlord to the extent not specifically responsible for the
          administration of the Land and Building) engaged in the operation,
          administration, maintenance and repair of the Land and Building;
          security personnel and systems; electricity (except as charged
          separately to tenants), fuel, water (including sewer rental) and other
          utilities, taxes (excluding, to avoid duplication, Real Estate Taxes
          and Tax on Capital), licenses and fees; insurance costs, premiums and
          deductible payments in respect of fire, casualty, liability, property
          damage, boiler, loss of rental and such other form or forms of
          insurance relating to the Land and Building from time to time in
          effect; cleaning, supervision, maintenance, operation and repair
          costs, expenses and charges relating to the Land and Building
          (including, without limitation, the elevators, the garage and parking
          facilities, and other common areas and facilities) and the equipment,
          systems and fixtures therein and the making of all necessary repairs,
          modifications, renovations or replacements therein and thereto;
          building and cleaning supplies; equipment rental; depreciation of
          machinery, equipment, facilities and systems which by their nature
          require periodic replacement (to be amortised as required in the
          immediately following sentence of this paragraph 1.01(l)); cleaning of
          windows and exterior curtain walls; cleaning and maintenance of
          grounds (including snow removal), gardening and landscaping; garbage
          and waste collection and disposal; amounts payable pursuant to service
          contracts with independent contractors for maintenance, elevators,
          cleaning, refuse removal, security operations and repairs;
          expenditures relating to
<PAGE>

                                                                               4

          energy conservation measures or programs; legal and accounting fees
          and expenses incurred with respect to the operation of the Land and
          Building.

          Without limiting the generality of the foregoing, Operating Expenses
          includes all capital expenditures relating to the foregoing which in
          accordance with generally accepted accounting principles, shall be
          amortised on a straight-line basis over the useful life of the
          expenditure in question, it being understood that only the amortised
          portion plus interest on the unamortised portion of the capital
          expenditure, at the lending rate actually charged or chargeable to
          Landlord from time to time by its lenders, will be included in
          Operating Expenses for each year.

          Operating Expenses shall not include:

          i)    costs or expenses attributable to defects in the original design
                or construction of the Building or of remedying construction
                inadequacies;

          ii)   emphyteutic or other rent payable by Landlord under any
                emphyteutic lease or other lease of the Building and the Land;

          iii)  costs of advertising in respect of the Building;

          iv)   charges for special services rendered or special materials
                furnished to other tenants of the Building in excess of those
                generally rendered or furnished to such tenants in general;

          v)    costs and expenses incurred to alter the Building for the
                special benefit of particular tenants as opposed to the benefit
                of the tenants of the Building in general and costs and expenses
                of installing partitions or other improvements for the premises
                of particular tenants;

          vi)   any amount paid by Landlord as a fine or penalty as a result of
                a breach of law by Landlord with respect to the Building or the
                Land (provided such breach was not caused by or contributed to
                by Tenant) or in satisfaction of any judgment or pursuant to any
                out of court settlement;

          vii)  the cost of any renovations, improvements or betterments to the
                original structure of the Building which are optional to
                Landlord;

          viii) any depreciation of the Building or on any original equipment or
                fixtures thereof;

          ix)   costs incurred to enforce the leases of tenants including
                Tenant;

          x)    costs of obtaining any particular products or services in excess
                of what they would have been had the supplier thereof dealt with
                Landlord at arm's length;

          xi)   the amount of any sales tax, goods and services tax, value added
                tax or other similar tax paid or payable by Landlord for the
                purchase of goods and services included in Operating
<PAGE>

                                                                               5

                 Expenses which may be available to and claimed by Landlord as a
                 credit in determining Landlord's net tax liability;

          xii)   amounts payable by Landlord on account of financing or
                 refinancing of the Building and Land, including payments of
                 principal and interest in respect of such financing;

          xiii)  any cost or expense incurred in connection with the leasing of
                 space in the Building to any particular tenant, including
                 brokers fees, commissions, legal fees and expenses, marketing
                 costs, costs of remodelling space, any tenant inducements,
                 rent-free periods and other leasing incentives, the cost of
                 lease take-overs, the cost of market studies and any other fees
                 and expenses of a similar nature;

          xiv)   any reserve for bad debt or other loss of rentals;

          xv)    the cost of acquisition of sculptures, paintings or other works
                 of art; and

          xvi)   under reserve of Tenant's obligation to pay its contributions
                 to Tax on Capital as defined in paragraph 1.01(t), Landlord's
                 capital gains taxes, corporate income taxes, and profits or
                 excess profits taxes.

     There shall be deducted from Operating Expenses the following items which
     would be included therein were it not for the inclusion of this sentence in
     this paragraph 1.01(I):

          xvii)  amounts recovered from tenants of the Building for which they
                 are responsible as a result of any act, omission, default or
                 negligence on their part;

          xviii) amounts recovered as insurance proceeds or which would have
                 been recovered as such by Landlord had it not failed to comply
                 with its insurance obligations;

          xix)   recoveries by Landlord under warranties or guarantees relating
                 to the construction of the Building; and

          xx)    revenues paid to Landlord in consideration of the use of the
                 common areas and facilities contemplated in Clause 24.03, to
                 the extent that such revenues do not exceed the aggregate of
                 the costs, charges and expenses incurred by Landlord in
                 connection with such common areas and facilities.

     (m)  PREMISES: those certain Premises substantially as shown outlined in
          red on the floor plan(s) hereto attached as SCHEDULE "B" situated on
          the second floor of the Building and having a rentable area deemed,
          for all intents and purposes, to be nine thousand three hundred thirty
          (9,330) square feet.

     (n)  PROPORTIONATE SHARE: the fraction, expressed as a percentage, whose
          numerator is the deemed rentable area of the Premises referred to in
          paragraph 1.01(m) and whose denominator is the rentable area of the
          Building, excluding the parking and storage areas. The parties declare
<PAGE>

                                                                               6

          that they are satisfied as to such denominator and accordingly deem
          the Proportionate Share to be nine and sixty-seven one hundredths
          percent (9.67%), for all intents and purposes.

     (o)  REAL ESTATE BROKER: David Boyd, representing Devencore Ltd.

     (p)  REAL ESTATE TAXES: all taxes, surtaxes, non-residential taxes,
          charges, rates and assessments, general or special, or any other
          taxes, rates, assessments, levies and impositions which are now or
          which may ever be levied against the Land, Building or the revenues
          therefrom for municipal, urban community, school, public betterment,
          general, local improvement or other purposes. If the system of
          taxation now in effect is altered and any new tax or levy is imposed
          or levied upon the Land and Building and/or the owner thereof and/or
          the revenues therefrom in substitution for or in addition to all taxes
          presently levied or imposed upon immovable, the expression "Real
          Estate Taxes" shall include such new tax or levy. If the competent
          authorities shall at any time eliminate any tax, rate, assessment or
          imposition which compose part of the Real Estate Taxes, Landlord shall
          eliminate same from the definition of Real Estate Taxes. To avoid any
          doubt, under reserve of Tenant's obligation to pay its contributions
          to Tax on Capital as defined in paragraph 1.01(t), Real Estate Taxes
          do not include Landlord's capital gains taxes, corporate income taxes,
          or profits or excess profits taxes.

     (q)  RENT:

          i)   from the Commencement Date until June 30, 2000, an annual rental
               of one hundred sixty-seven thousand nine hundred forty dollars
               ($167,940.00);

          ii)  from July 1, 2000 until June 30, 2001 an annual rental of one
               hundred seventy-two thousand six hundred five dollars
               ($172,605.00).

     (r)  SCHEDULES: the following Schedules are attached hereto: "A" -Land
          Description, "B" - Premises Description, "D" Rules and Regulations,
          "E" - Minimum Standards for Tenant Finishes, "F"- Special Conditions.

     (s)  SECURITY DEPOSIT: twenty-eight thousand three hundred seventy-eight
          dollars and seventy-five cents ($28,378.75).

     (t)  TAX ON CAPITAL: the aggregate of the portions imputed by Landlord to
          the Building and Land of all taxes and excises wholly or partly based
          upon or computed as a function of the capital employed in respect of
          the Building and Land levied or imposed from time to time upon
          whomsoever, calculated as if the party or parties employing the
          capital resulting in the levying or imposition thereof had no other
          property than the Building and Land, whether characterised as a tax on
          capital, a large corporations tax, an income tax or otherwise.

     (u)  TERM: the period commencing on the Commencement Date and terminating
          on the Termination Date.

     (v)  TERMINATION DATE: June 30, 2001
<PAGE>

                                                                               7

SECTION II.   LEASE
------- ---   -----

2.01 Landlord does hereby lease the Premises to the Tenant for the Term.

2.02 Save only for Landlord's work, if any, referred to in Section 14.01 hereof,
     Tenant accepts the Premises "as is-where is" and in their present state and
     condition.

SECTION III.  TERMINATION
------- ---   -----------

3.01 Subject to paragraph 1 of Schedule F to this Lease, this Lease shall
     terminate without notice or demand therefor being necessary on the
     Termination Date. Should the Tenant remain in occupation of the Premises
     after the expiration of the Lease without having executed a new written
     lease with the Landlord, such holding over shall not constitute a renewal
     or extension of this Lease. In such event, the Landlord may, at its option,
     elect to treat the Tenant as one who has not removed at the end of the Term
     and the Landlord shall be entitled to all remedies against the Tenant
     provided by law in that situation, or the Landlord may elect, at its
     option, to construe such holding over as a tenancy from month to month
     subject to all the terms and conditions of this Lease save as to its
     duration and save that the Rent payable pursuant to Section IV hereof shall
     be two (2) times the Rent payable in the preceding year.

SECTION IV.   RENT
------- ---   ----

4.01 Tenant covenants and agrees to pay the Rent to the Landlord in equal,
     consecutive, monthly instalments, in advance on the first day of each
     calendar month. In the event the Term of the Lease begins on any day of the
     month other than the first day, any Rent or other amount payable hereunder
     for such month and for the last month of the Term shall be calculated on a
     per diem basis and paid in advance.

4.02 The Rent shall be payable in lawful money of Canada to Landlord at its
     offices in Montreal or at such other place or to such other person as may
     be specified from time to time by Landlord without any demand therefor
     being necessary, the whole without set-off, reduction, deduction,
     diminution or compensation whatsoever.

SECTION V.    RENTALS
------- --    -------

5.01 Tenant acknowledges that the Rent shall be absolutely net to the Landlord;
     save only as herein expressly set forth, Landlord shall not be responsible
     for any costs, charges, expenses or outlays of any nature or kind
     whatsoever arising from or relating to the Premises, the contents thereof,
     or the business carried on therein, and Tenant shall pay all such charges,
     impositions, costs and expenses of every nature and kind (including such as
     may be incurred by or paid for by Landlord on its behalf) to Landlord's
     complete and entire exoneration as well as Tenant's Proportionate Share of
     the amount by which Real Estate Taxes, Tax on Capital and Operating
     Expenses for each Lease Year exceed the Base Real Estate Taxes, Base Tax on
     Capital and Base Operating Expenses, as hereinafter set forth.
<PAGE>

                                                                               8

5.02  Tenant shall not be responsible for the payment of Landlord's income taxes
      (except for Tax on Capital to the extent herein mentioned) and Tenant
      shall not be responsible for the payment of principal or interest due
      under any hypothec or deed of trust affecting the Land and Building.

SECTION VI.  REAL ESTATE TAXES, TAX ON CAPITAL AND OPERATING EXPENSES
------- ---  --------------------------------------------------------

6.01  Throughout the Term, any renewal thereof and/or holding over thereunder,
      the Tenant shall pay as additional rent, for each Lease Year, the Tenant's
      Proportionate Share of the amount by which the Real Estate Taxes exceed
      the Base Real Estate Taxes. The amount the Tenant is required to pay
      pursuant to the foregoing shall be subject to per diem adjustments for any
      Lease Year of less than twelve (12) full calendar months.

6.02  For each Lease Year, the Landlord shall invoice the Tenant for the
      Tenant's Proportionate Share of the amount by which the Real Estate Taxes
      exceed the Base Real Estate Taxes which the Tenant shall pay within thirty
      (30) days of receipt or, should actual bills not yet have been received
      for such Lease Year, the Landlord shall estimate the amount of the
      Tenant's Proportionate Share of the amount by which Real Estate Taxes
      exceed the Base Real Estate Taxes (Landlord reserving the right to revise
      said estimate from time to time, Landlord acting reasonably) and shall
      invoice the Tenant therefor in equal, consecutive instalments which the
      Tenant shall pay to Landlord in advance on the first day of each calendar
      month. In any event, when actual bills for all or any portion of the Real
      Estate Taxes are received, the Landlord shall, within a reasonable delay
      thereafter, furnish the Tenant with a statement setting forth such portion
      thereof that is payable by the Tenant pursuant to this Section VI. If such
      amount is greater or less than the payments on account thereof made by the
      Tenant pursuant to this Section VI, appropriate adjustments shall be made
      forthwith.

6.03  In addition to Tenant's obligation to pay Landlord's invoice for its
      contributions to Real Estate Taxes when actual bills are received, Tenant
      shall continue to make the aforementioned monthly instalments on account
      of estimated future contributions to Real Estate Taxes on the same basis
      or on the basis of Landlord's revised reasonable estimate thereof, as the
      case may be, and so on from time to time.

6.04  Any reasonable expenses incurred by the Landlord in obtaining or
      attempting to obtain a reduction of Real Estate Taxes shall be added to
      and included in the computation of Real Estate Taxes. In the event that
      the Tenant shall have paid its Proportionate Share of the amount by which
      Real Estate Taxes exceed the Base Real Estate Taxes pursuant to this
      Section VI and the Landlord shall thereafter receive a refund of any
      portion of the amount so contributed by Tenant, the Landlord shall pay to
      the Tenant its Proportionate Share of such refund. However, refunds of
      Real Estate Taxes for vacant premises or resulting from reductions of such
      taxes attributable to there being or having been vacant space in the
      Building shall not be deducted from or otherwise reduce Real Estate Taxes
      and the amounts of any credits (applicable against Real Estate Taxes or
      other indebtedness) or reductions of such taxes for vacant premises
      attributable to there being or having been vacant space in the Building
      shall be included in Real Estate Taxes as if such credits or reductions
      had not been granted, it being the intention of the parties
<PAGE>

                                                                               9

         that such refunds, credits and reductions shall be for the sole benefit
         of the Landlord.

         Should the taxation authorities at any time attribute any part of the
         Real Estate Taxes to the Premises or the improvements therein, the
         Landlord may, on the condition that insofar as the Tenant is concerned,
         it treats the parts of the Real Estate Taxes so attributed to the
         premises of other tenants in the Building on the same basis, cause the
         Tenant to pay for same in addition to Tenant's Proportionate Share of
         the amount by which the Real Estate Taxes (to be deducted from the said
         Real Estate Taxes the part of the Real Estate Taxes so attributed as
         well as the amount, if any, directly attributed by the taxation
         authorities to other premises or tenant improvements in the Building)
         exceed the Base Real Estate Taxes, the whole in the manner and subject
         to the conditions hereinabove set forth. However, any attributions by
         the taxation authorities of proportions of any Real Estate Taxes to
         such premises for the purpose of determining the amounts of any refunds
         or credits of any such taxes for vacant premises or the amounts of any
         subsidies regarding any such taxes in favor of certain classes of
         tenants, or for other similar purposes, (including, without limitation,
         such attributions as are contained in the schedule contemplated in
         Section 69 of the Loi sur la fiscalite municipale (R.S.Q., Chapter F-
         2.1)) shall be deemed not to be attributions contemplated in the
         immediately preceding sentence nor shall they affect Tenant's
         obligations to pay Tenant's contributions to Real Estate Taxes.

6.05     Landlord shall have no obligation to contest, appeal, object to or
         litigate the levying or imposition of Real Estate Taxes and/or any
         valuation imposed with respect thereto and Landlord may settle,
         compromise, consent to, waive or otherwise determine in its sole
         discretion all matters and things relating thereto. Tenant shall not
         itself contest, appeal, object to or litigate the levying or imposition
         of Real Estate Taxes.

6.06     Throughout the Term, any renewal thereof and/or holding over
         thereunder, the Tenant shall pay as additional rent the Tenant's
         Proportionate Share of the amounts by which Operating Expenses and Tax
         on Capital respectively exceed the Base Operating Expenses and the Base
         Tax on Capital. The amount the Tenant is required to pay pursuant to
         the foregoing shall be subject to per diem adjustments for any Lease
         Year of less than twelve (12) full calendar months.

6.07     For each Lease Year, Landlord shall estimate the amounts of Operating
         Expenses and Tax on Capital and shall invoice Tenant for Tenant's
         Proportionate Share of the amounts by which such estimated amounts
         respectively exceed the Base Operating Expenses and the Base Tax on
         Capital, in equal consecutive monthly instalments which Tenant shall
         pay to Landlord in advance on the first day of each calendar month. At
         the end of each Lease Year, Landlord shall furnish Tenant with a
         statement certified by an independent firm of chartered accountants
         setting forth the actual Operating Expenses and Tax on Capital for such
         year. If Tenant's contributions to Operating Expenses and Tax on
         Capital for that Lease Year are greater or less than the payments
         respectively made on account thereof made by Tenant pursuant hereto,
         appropriate adjustments shall be made forthwith. Thereafter, Tenant
         shall continue to make the aforementioned monthly instalments on
         account of estimated contributions to Operating Expenses and Tax on
         Capital for the ensuing Lease Year on the same basis or on the basis of
         Landlord's revised reasonable estimate of same, as the case may be, and
         so on from time to time.
<PAGE>

                                                                              10

6.08     Notwithstanding anything hereinabove contained, if the Building is less
         than fully occupied during any Lease Year, the Landlord shall be
         entitled to allocate those portions of the Operating Expenses and Real
         Estate Taxes which vary with the extent of the use and occupancy of the
         Building (such as, but not limited to, heating, air-conditioning and
         ventilating expenses, electricity, cleaning and cleaning supplies, real
         estate surtaxes, management or administration fees and expenses) to the
         rented space in the Building only and to reduce the Base Operating
         Expenses and the Base Real Estate Taxes appropriately, such that the
         Tenant shall pay a proportion of the amounts by which Operating
         Expenses and Real Estate Taxes respectively exceed the reduced Base
         Operating Expenses and the reduced Base Real Estate Taxes, such
         proportion to be the ratio that the gross rentable area of the Premises
         bears to the gross rentable area of all rented space in the Building,
         excluding parking and storage areas. In no event, however, will Tenant
         be obliged to pay an amount in virtue of the foregoing which is greater
         than the amount the Tenant would have paid as its contributions to
         Operating Expenses and Real Estate Taxes had the Building been fully
         occupied.

6.09     Failure or delay on the part of the Landlord to avail itself of any of
         the provisions of this Section VI shall not constitute any waiver or
         renunciation of its rights provided herein.

6.10     Notwithstanding anything contained in this Section VI to the contrary,
         Landlord reserves the right to allocate all or any part of the Real
         Estate Taxes, Operating Expenses and Tax on Capital between Tenant and
         other tenants of the Building in a manner different than that herein
         contemplated should such allocation, in Landlord's reasonable
         discretion, appear more equitable in the circumstances.

SECTION VII.      USE OF PREMISES
-----------       ---------------

7.01     The Tenant shall use the Premises as general offices and for no other
         purpose. Nothing herein shall be so interpreted as to imply that this
         Lease is conditional upon the Tenant obtaining any permits or licenses
         for the exploitation of such business from any municipal, provincial or
         other authority.

SECTION VIII.     UTILITIES AND ADDITIONAL CHARGES
------- -----     --------------------------------

8.01     The Tenant shall pay as and when due all business, water and service
         taxes and other similar rates and taxes which may be levied or imposed
         upon the Premises or upon the business carried on therein by Tenant or
         the other occupants of the Premises, and also all other rates and taxes
         which are or may be payable by any of them. If the mode of collecting
         such taxes be so altered as to make the Landlord and/or the proprietor
         liable therefor instead of the Tenant, the Landlord will pay such
         accounts and the Tenant will repay the Landlord as additional rent on
         demand the amount so paid.

8.02     The Landlord (subject to its ability to obtain the same from its
         principal supplier) will cause the Premises to be supplied with
         electric current for the lighting and power required therein for the
         operation of the Tenant's reasonable needs (excluding power required
         for heating, ventilating and air-conditioning the Premises, the cost of
         which forms part of Operating Expenses), which current the Tenant
         hereby agrees to take and receive from the Landlord. For said electric
         current, Tenant shall pay an additional annual
<PAGE>

                                                                              11

         rental equal to the Electrical Amount. Said annual rent shall be paid
         in equal, consecutive, monthly instalments in advance. The obligations
         of the Landlord hereunder shall be subject to any rules or regulations
         to the contrary of the Quebec Hydro Electric Commission or any other
         municipal or governmental authority. In the event any special lighting
         (above Building standard) or equipment (including, but not limited to,
         special heating, ventilating, air-conditioning systems, printing
         presses, computers and the like) is installed in the Premises or
         lighting is used beyond Business Hours or in any other event where
         there is reason to believe that excess electricity is being consumed in
         the Premises, the Landlord shall have the right to survey or meter (at
         the Tenant's expense) the total electrical consumption and the Tenant
         shall pay for any excess disclosed by said survey or metering by
         appropriate increases in the aforementioned monthly instalments.

8.03     The Tenant shall pay as and when due all license fees, water rates,
         sewer rates and other like fees, charges, rates and assessments that
         may be levied, charged, rated or assessed against the Premises and/or
         the equipment and facilities thereon or therein and/or any property on
         the Premises owned or brought thereon by Tenant.

8.04     The Tenant shall pay for the cost of all other utilities consumed or
         used within the Premises by Tenant or other occupants thereof, same to
         include, without limitation, the cost of water, gas, steam, fuel or
         other energy and Tenant shall pay for the cost of all fittings,
         machines, apparatus, meters or other things leased in respect thereof
         and for all work or services performed by any corporation or commission
         in connection with any such utilities.

8.05     Tenant will retain evidence of payment of any charges referred to in
         this Section VIII which it pays directly to any public authority for
         inspection by Landlord at Tenant's offices during normal business hours
         upon reasonable prior notice, the whole for a period of two (2) years
         following the due dates for payment of said charges.

SECTION IX.    SERVICES
----------     --------

9.01     Services

         (a)   BUSINESS HOURS: The Landlord shall keep the Building open during
               Business Hours. The Landlord shall make reasonable provision to
               allow Tenant access to the Premises at other times.

         (b)   CLEANING: The Landlord shall clean the Premises in accordance
               with standards for comparable buildings at such time or times
               outside Business Hours on Business Days as Landlord may, in its
               sole discretion, determine. The Tenant shall leave the Premises
               reasonably tidy for purposes of cleaning.

         (c)   HEATING: The Landlord shall heat the Premises during Business
               Hours. The Landlord shall not be responsible for the failure of
               heating equipment to perform its functions if such failure is due
               to circumstances beyond the control of Landlord. The Tenant shall
               be responsible for the failure of heating equipment performing
               its function if such failure results from unapproved partitioning
               within the Premises, unapproved changes or alterations thereto.
<PAGE>

                                                                              12

         (d)   AIR-CONDITIONING: The Landlord shall provide reasonable air-
               conditioning service during Business Hours. Any special
               requirements or equipment above Building standards shall be at
               the Tenant's sole cost and expense.

         (e)   ELEVATORS: The Landlord shall keep the passenger elevator(s) in
               operation during Business Hours. Limited elevator access to the
               Premises will be made available at all other times.

         (f)   LIGHTING: The Landlord shall supply Building standard lighting
               fixtures as well as lamps, bulbs, tubes, starters and ballasts on
               the Commencement Date. Lamps, bulbs, tubes, starters and ballasts
               shall thereafter be replaced by Landlord at Tenant's cost,
               Landlord reserving the right to relamp the entire Premises at
               Tenant's cost when Landlord, acting reasonably, considers it cost
               efficient or otherwise in accordance with sound property
               management practice to do so.

         (g)   PUBLIC WASHROOMS AND FACILITIES: The Landlord shall furnish men's
               and women's washroom facilities in the central service core on
               each office floor. Said washrooms shall be supplied with soap,
               paper supplies and other necessary materials. A chilled water
               fountain will also be provided in the central service core on
               each office floor.

9.02     Except as provided for in this Section IX, the cost of providing all of
         the foregoing services shall form part of Operating Expenses save that
         the provision of any services other than the services contemplated in
         paragraphs 9.01(b), (e), (f) and (g), if provided outside Business
         Hours (to the extent same can be made available upon reasonable prior
         notice to Landlord), shall be at the Tenant's sole cost and expense.
         The cost of supplies to washrooms contained within the Premises other
         than in the central service core shall be for Tenant's account.

SECTION X.     THERE IS NO SECTION X IN THIS LEASE
------- -      -----------------------------------

SECTION XI.    ASSIGNMENT AND SUBLETTING
------- --     -------------------------

11.01    The Tenant shall not assign this Lease or sublet the Premises or any
         part thereof or allow the Premises or any part thereof to be used by
         another without the prior written consent of the Landlord, which
         consent shall not be withheld without a serious reason. The Landlord's
         refusal of consent shall be deemed to have been for a serious reason
         (without in any way restricting the Landlord's right to refuse its
         consent on other serious grounds) where the assignee or subtenant
         proposed by the Tenant is then a tenant of the Building and the
         Landlord has or will have during the next ensuing eighteen (18) months
         suitable space for rent in the Building, where the nature of the
         business to be conducted by the assignee or subtenant conflicts with
         exclusive rights granted other tenants or occupants of the Building,
         where the prospective assignee or subtenant is a consulate, embassy,
         trade commission or other representative of a foreign government, where
         the Premises are intended to be used as medical, dental, government or
         quasi-government offices, where the proposed assignee or sub-tenant
         does not intend to bona fide physically occupy and carry on business
         from the Premises or when the proposed assignment or sublease is made
         prior to the Tenant commencing to physically and bona fide occupy and
         carry on
<PAGE>

                                                                              13

         business from the Premises or where it is reasonably anticipated by the
         Landlord that the number of persons visiting the Premises will
         substantially increase as a result of the assignment or subletting.

         Notwithstanding any contrary provision of this Lease, Tenant shall have
         the right, upon prior written notice to Landlord but without the
         requirement of obtaining Landlord's prior written consent, to either
         assign this Lease or sublet the Premises or any part thereof to an
         affiliate of Tenant in which event the same terms, covenants and
         conditions as would have applied had Landlord's prior written consent
         been required and been granted shall apply to and in respect thereof;
         save and except that the Landlord's rights contained in Clause 11.02
         shall not apply thereto.

11.02    As an alternative to such consent (and without being obliged or
         affecting its other rights), the Landlord shall have the right:

         (a)   to sublease the Premises from the Tenant (or such part thereof as
               Tenant seeks to sublet) under the same terms and conditions set
               forth in the agreement with the assignee or subtenant except in
               respect of rent which shall be the lesser of the Rent (or a
               proportionate amount thereof in the event only a part of the
               Premises is intended to be sublet) or the rental payable pursuant
               to the assignment or sublease agreement, as the case may be; or

         (b)   to cancel the Lease for the Premises (or, as the case may be, for
               that portion thereof that Tenant seeks to sublet)

         the whole as, of and from the date Tenant wishes to assign this Lease
         or sublet the Premises or permit their use by another. Landlord shall
         exercise the rights herein granted by sending notice thereof to Tenant
         within fifteen (15) days following receipt of the notice referred to in
         Section 11.04 hereof. It is agreed and understood that in the event
         Landlord elects to exercise the rights conferred to it in accordance
         with subparagraphs (a) or (b) above in lieu of granting or refusing its
         consent to the proposed assignment or sublet, Tenant acknowledges and
         accepts that Landlord need not justify its election upon serious or
         other grounds. It is expressly agreed and understood that the rights so
         conferred to Landlord have been freely given to Landlord by Tenant for
         valid commercial reasons. However, if Landlord exercises its right to
         cancel the Lease (as set forth in subparagraph (b) above), Tenant may
         withdraw its request for consent to the assignment or sublet by written
         notice to Landlord to be received no later than ten (10) days following
         receipt of Landlord's notice of cancellation, in which case the Lease
         will continue in full force and effect; if Tenant does not withdraw its
         request within such ten (10) day period, then the Lease will terminate
         as hereinabove provided.

11.03    Notwithstanding any assignment, transfer, subletting or permitted use
         by another, the Tenant shall remain solidarily responsible with the
         assignee, transferee, subtenant or user (and, in the circumstances
         contemplated in Section 11.05 hereof, with the party who acquires
         control), without benefit of division or discussion, for the payment of
         the Rent and all additional rentals and for the performance of all
         other obligations of the Tenant under this Lease. The Rent payable by
         the Tenant shall be increased by an amount equal to the profit, if any,
         derived by Tenant from the sublease, assignment or transfer. For all
         purposes hereof, "profit" shall mean the rent, additional rent and
         other amounts payable directly or indirectly by the subtenant,
         transferee, assignee or user to or for the account of the Tenant in
         excess of the Rent and additional rentals payable by Tenant hereunder
         including but not limited to all
<PAGE>

                                                                              14

         capital or other sums paid for improvements or otherwise. At Landlord's
         sole option and upon written notice to Tenant and to the assignee,
         transferee, subtenant or user, as the case may be, and without any
         further formality, all rentals, sub-rentals and similar amounts payable
         by an assignee, transferee, subtenant or user to Tenant shall be
         irrevocably and unconditionally assigned to Landlord such that the
         assignee, transferee, subtenant or user shall pay all such sums
         directly to Landlord and the amounts so paid will be credited against
         Tenant's monetary obligations under this Lease. In no event will this
         assignment or any dealings with the assignee, transferee, subtenant or
         user have the effect of releasing Tenant from any of its obligations
         under this Lease. Furthermore, it is understood that if Landlord does
         not collect any subrentals or other amounts from any assignee,
         transferee, subtenant or user, Tenant will have no claim or defense
         against Landlord in any manner whatsoever. If this Lease is repudiated,
         disclaimed or terminated in connection with or as a result of the
         bankruptcy or insolvency of the original Tenant or any assignee,
         transferee or subtenant, the original Tenant and any assignee,
         transferee or subtenant other than the bankrupt or insolvent person or
         entity, upon notice from the Landlord given within sixty (60) days of
         Landlord's knowledge of such repudiation, disclaimer, or termination,
         will enter into a lease with the Landlord for a term expiring on the
         date this Lease would have expired but for the repudiation, disclaimer
         or termination and upon the terms and conditions which would have
         applied during the remainder of the Term had this Lease not been
         repudiated, disclaimed or terminated.

11.04    Tenant agrees to provide Landlord with at least thirty (30) days' prior
         written notice of the name, address and nature of business of the
         proposed assignee, transferee or sublessee, such credit references and
         other information as Landlord may reasonably request and a copy of the
         draft assignment, transfer or sublease agreement, the execution of
         which will be conditional upon Tenant obtaining the Landlord's consent
         as hereinabove provided. Landlord may, at its option and as a condition
         of giving its consent to an assignment, transfer or subletting, require
         that Tenant and the proposed assignee, transferee or sublessee sign a
         form of assignment or sublet document (in form and content satisfactory
         to Landlord). Tenant agrees to provide Landlord with a copy of the
         assignment, transfer or sublease agreement executed by Tenant and the
         proposed assignee, transferee or sublessee together with the signed
         form of assignment or sublet document hereinafter referred to. Further,
         all reasonable costs, charges and expenses incurred by Landlord in
         respect of such assignment, transfer or sublet, including an
         administrative fee, shall be payable as a condition of the giving of
         Landlord's consent.

11.05    The Tenant will not advertise the Premises for the purpose of any
         sublease, transfer or assignment without obtaining the prior written
         approval of the Landlord to the proposed text, such approval not to be
         unreasonably withheld. In no event will the rental rate appear in any
         such advertisements. In no event will the Tenant be permitted to place
         any signs in or upon the Premises advertising the availability of the
         Premises (or any part thereof) for subleasing, assignment or transfer.
<PAGE>

                                                                              15

SECTION XII.      READINESS FOR OCCUPATION
------- ----      ------------------------

12.01    The Landlord shall not be liable for damages in the event Landlord's
         work, if any, in the Premises has not been completed by a particular
         date, it being understood that this Lease shall remain in full force
         and effect except that Rent and all other sums payable hereunder shall
         be calculated as and from the date that the Landlord's work has been
         substantially completed or would have been substantially completed had
         the Tenant not delayed the Landlord in the completion of Landlord's
         work.

SECTION XIII.     TENANT CARE
------- -----     -----------

13.01    The Tenant shall maintain and keep the Premises, including all
         replacements, alterations, additions and improvements thereto, in good
         order and condition and shall, in accordance with the procedures set
         forth in Section XIV hereof, perform or cause to be performed all
         repairs (other than structural repairs of a non-recurring nature not
         caused by Tenant's fault, negligence or breach of any obligation
         hereunder or at law) which may from time to time be required therein or
         thereto. Nothing contained in the immediately preceding sentence shall
         oblige Tenant to repair or replace items which have suffered wear and
         tear so long as such items continue to be in acceptable order and
         condition. Without limiting the generality of the foregoing and
         notwithstanding any legislation to the contrary, throughout the Term,
         the Tenant will be required, at its expense, to do all work necessary
         to retain the form and destination of the Premises as leased.

13.02    At the expiration or sooner termination of this Lease, Tenant shall
         return the Premises to Landlord in the state and condition in which
         they are to be maintained and repaired as herein provided.

13.03    The Tenant shall not bring into the Building any machinery, equipment,
         article or thing that by reason of weight or size might cause damage
         thereto and in no event shall Tenant overload the floors of the
         Building.

13.04    In the event Tenant fails to comply with the obligation to maintain,
         repair and replace imposed hereunder, the Landlord, after giving
         written notice of five (5) days to the Tenant, shall have the right to
         carry out such maintenance, repairs and replacements and any and all
         costs incurred by the Landlord in so doing, together with a fee equal
         to twenty percent (20%) of such costs, shall be payable by the Tenant
         to Landlord as additional rental on demand. Notwithstanding the
         foregoing, in the event any work or action is urgently required at
         times when authorised representatives of Tenant cannot be located,
         Landlord may proceed with such reasonable steps as in its discretion
         are deemed by it to be necessary for the protection and preservation of
         the Premises and Tenant shall reimburse Landlord for the amount
         expended as additional rental on demand.

SECTION XIV.      ALTERATIONS, ADDITIONS, IMPROVEMENTS AND REPAIRS
------- ----      ------------------------------------------------

14.01    Tenant accepts the Premises "as is-where is" in their state and
         condition existing on the Commencement Date; save and except that
         Landlord shall install, at its expense, a building-standard doorway
         separating the Premises from the space adjacent to them. All
         improvements, alterations and additions in and to and all repairs
         required for the Premises other than the installation
<PAGE>

                                                                              16

         mentioned in the immediately preceding sentence shall be the
         responsibility of Tenant and shall be performed at Tenant's sole cost
         and expense, the whole subject to the terms and conditions set forth in
         this Section XIV.

         All architectural plans and specifications setting forth Tenant's work
         may be prepared by a designer and/or architect of the Tenant's choice
         but shall be subject to Landlord's prior written approval as herein
         mentioned. Said plans and specifications shall include, without
         limitation, complete working drawings and specifications, floor plans,
         interior elevations, interior finishing schedules, special facilities
         or installations that affect the Premises and/or Tenant's perimeter
         walls, mechanical, plumbing, sprinklers, telephone and electrical work
         (including all fixtures, equipment and under floor services where
         applicable) and static and dynamic loading of floors. The Tenant plans
         and specifications shall be drawn to the same scale as the base
         Building working drawings. Tenant shall be responsible to ensure that
         the Tenant work, as designed, complies with all relevant laws, by-laws
         and regulations as well as with the Building module and structure and
         with the Building's mechanical, electrical, plumbing and other systems.
         Complete working drawings, plans and specifications shall be submitted
         to Landlord within twenty-one (21) days following execution of the
         Lease or within such other delay as the Landlord and Tenant have
         otherwise agreed. Within ten (10) days following receipt of the
         complete working drawings, plans and specifications, Landlord shall
         notify Tenant either of its approval thereof or of changes required and
         if Landlord notifies Tenant that changes are required, Tenant shall,
         within seven (7) days thereafter, submit the necessary amended
         drawings, plans and specifications. Failure by Tenant to submit
         complete working drawings, plans and specifications within the delays
         herein contemplated shall be deemed to be a delay in the completion of
         the Premises attributable to Tenant's fault.

14.02    All improvements, alterations, additions or repairs required or
         requested by the Tenant may, at the option of Landlord, be carried out
         by the Landlord or under the latter's coordination, in which event the
         Tenant shall pay for the costs thereof as well as an amount equal to
         five percent (5%) of such cost on account of Landlord's overhead and
         administration and an amount of five percent (5%) of the aggregate of
         the foregoing representing Landlord's coordination and profit. In
         addition, the Tenant shall pay for the cost of all architectural,
         engineering and/or working drawings prepared to comply with the
         Tenant's requirements and for the cost of inputting such working
         drawings in any Building computerised design records that may from time
         to time be maintained as well as the foregoing fees calculated on the
         cost thereof. Payment shall be effected by way of a cash deposit and
         progress draws during the course of the work, the specifics of which
         shall be established by the Landlord, acting reasonably, from time to
         time.

14.03    Should the Landlord elect not to carry out improvements, alterations,
         additions or repairs required or requested by the Tenant, the Tenant
         shall not itself make any such improvements, alterations, additions or
         repairs to the Premises without obtaining all necessary permits from
         the appropriate public authorities and without the prior written
         consent of the Landlord, pursuant to Section 14.01 hereof. The Tenant
         shall be required to submit to the Landlord plans and specifications
         (in accordance with the provisions of Section 14.01 hereof and within
         the delays therein mentioned) for all such improvements, alterations,
         additions or repairs and Tenant shall pay for the cost of inputting
         such plans and specifications in any Building computerised design
         records that may from time to time be maintained. All such work shall
         be done by contractors approved by the Landlord, which approval shall
         not be
<PAGE>

                                                                              17

         unreasonably withheld. All such work shall be conditional upon such
         contractors paying the cost of temporary services and coordination
         during such construction, upon such contractors timing and performing
         their work in accordance with such rules and regulations as the
         Landlord may from time to time prescribe, upon such contractors
         carrying property damage and liability insurance satisfactory to the
         Landlord for its operations in the Building and upon the employees of
         such contractors not causing any labour trouble by their presence in
         the Building. Furthermore, the Tenant shall require that prior to
         entering the Premises or performing any work therein, the Tenant's
         contractors shall deliver to the Landlord a waiver and release from all
         privileges or rights of privilege, all hypothecs or rights of hypothec
         and/or other encumbrances that may then or thereafter exist, be
         registered or published against any portion of the Land or Building for
         work done, labour performed or materials furnished under any contract
         and such contractors must agree to furnish to the Landlord a good and
         sufficient waiver of privilege, hypothecs and/or other encumbrances for
         every subcontractor and supplier furnishing labour and material under
         the contract. The Tenant shall be responsible for any costs and
         expenses of the Landlord occasioned directly or indirectly by such work
         in the Premises. The cost of such improvements, alterations, additions
         or repairs shall be the sole responsibility of the Tenant and if any
         payment in respect thereof shall be made by the Landlord, the Landlord
         hereby reserving the right to do so in its sole discretion, the same
         shall be immediately payable by the Tenant on demand as additional
         rent. Tenant shall furthermore pay to the Landlord as additional rent
         on demand an amount equal to ten percent (10%) of the total cost of all
         of such work representing Landlord's fee for administration and
         coordination of same.

14.04    All improvements, alterations, additions or repairs to the Premises
         (including all lighting installations such as, but not limited to,
         spotlights and tracks, all floor finishes of whatsoever nature placed
         upon the concrete floor of the Premises, all heating, air-conditioning
         and ventilating equipment and systems, all panelling and all window
         coverings, built-ins and the like) shall, upon their completion, become
         a part of the Premises and the property of the Landlord and shall be
         surrendered with the Premises upon termination of this Lease without
         any compensation being due therefor; provided, however, that the
         Landlord shall have the option, in its sole discretion, to require the
         Tenant to remove at the Tenant's cost and under the Landlord's
         coordination and direction, all or any of such improvements,
         alterations, additions or repairs as may have been made by Tenant or by
         Landlord at Tenant's request prior to or during the Term and to restore
         the Premises or any part thereof to the condition they were in at the
         Commencement Date, reasonable wear and tear only excepted. To avoid any
         doubt, such option shall not apply in respect of improvements,
         alterations, additions or repairs made to the Premises by any other
         tenant.

SECTION XV.    MAJOR REPAIRS
------- ---    -------------

15.01    Should the Landlord effect improvements, alterations, additions or
         repairs to the Premises or Building, the Tenant shall permit same to be
         performed without being entitled to any indemnity or reduction in
         rental or any damages or compensation therefor. All such work shall be
         completed by the Landlord with reasonable dispatch and the cost thereof
         shall be included in Operating Expenses unless such work is otherwise
         Tenant's responsibility hereunder in which event Tenant shall pay for
         the full cost thereof.
<PAGE>

                                                                              18

SECTION XVI.      ACCESS TO PREMISES
------- ---       ------------------

16.01    The Landlord, its agents and representatives may enter the Premises at
         all reasonable times following reasonable prior notice thereof to
         Tenant (and at any time and without notice being required during an
         emergency) to examine their condition and to view their state of
         repair, maintain, clean, re-lamp or otherwise and Tenant covenants to
         repair according to notice.

16.02    The Tenant shall allow the Premises to be exhibited during normal
         business hours to persons interested in acquiring the Land or Building
         or advancing money upon the security thereof. During the last six (6)
         months of the Term, Tenant shall also allow the Premises to be
         exhibited to persons interested in leasing same.

SECTION XVII.     PROTECTION OF EQUIPMENT
------- -----     -----------------------

17.01    The Tenant shall protect from damage and make all necessary repairs and
         replacements to the heating, ventilating and air-conditioning
         apparatus, water, gas and drain pipes, water closets, sinks and
         accessories thereof in and about the Premises and keep same free from
         all obstructions that might prevent their free working and shall give
         to the Landlord prompt written notice of any accident to or defects in
         same or any of their accessories. On the Commencement Date, Landlord
         shall deliver the heating, ventilating and air-conditioning apparatus,
         water, gas and drain pipes, water closets, sinks and accessories in or
         serving the Premises in a good state of repair and in proper working
         condition.

SECTION XVIII.    COMPLIANCE WITH LAWS AND INDEMNIFICATION
------- ------    ----------------------------------------

18.01    The Tenant will not do or permit anything to be done in, upon or about
         the Premises or bring or keep anything therein which will in any way
         conflict with the regulations of the fire, police or health departments
         or with the rules, regulations, by-laws, ordinances or laws of the
         municipality in which the Land and Building are situate, the applicable
         burban community (if any), or any governmental authority having
         jurisdiction over the Premises or the business conducted therein, all
         of which the Tenant undertakes to abide by and conform to.

         The Tenant covenants and agrees that it will indemnify and hold
         harmless the Landlord, its agents and contractors from and against any
         penalty imposed for or damage arising from the breach of any such
         rules, regulations, by-laws, ordinances or laws by the Tenant or those
         for whom the Tenant is responsible. The Tenant shall not do anything
         which would cause the Premises to be in breach of any environmental
         legislation including, without limitation, the Environmental Quality
                                                        ---------------------
         Act.
         ---

18.02    The Tenant shall pay to the Landlord any extra premiums of insurance
         that the company or companies insuring the Land and Building may exact
         in consequence of the business carried on by the Tenant, of anything
         brought into or stored in the Premises by the Tenant, or of the
         Tenant's operations. The Tenant shall furthermore protect the Landlord
         from claims made by other tenants in the Building in consequence of
         their insurance rates being increased as a result of such causes.
<PAGE>

                                                                              19

         The Tenant shall in no event bring into or store in the Premises
         anything which may make any insurance carried by the Landlord subject
         to cancellation.

18.03    The Tenant shall comply with the requirements of all insurance
         companies having policies of any kind whatsoever in effect covering the
         Land and Building. In no event shall any inflammable materials or
         explosives (except to the extent required by Tenant to carry on its
         business and then only as permitted by Landlord's and Tenant's
         insurers) be taken into or maintained within the Premises.

18.04    The Tenant shall indemnify and hold harmless the Landlord from and
         against all claims, liabilities or payments relating to the use and
         occupancy of the Premises by Tenant or the other occupants thereof and,
         without limiting the generality of the foregoing, Tenant does hereby
         agree to indemnify and hold harmless the Landlord from and against all
         claims, liabilities, damages, costs, suits or actions arising from:

         (a)   any accident, injury (including death) or damage whatsoever or
               howsoever caused to any person or persons (including the Tenant,
               its employees, agents and invitees, any subtenant or licensee of
               the Tenant and all other persons claiming through or under any of
               them) or to the property of any such person or persons occurring
               during the Term, caused by want of repair to, or by the use or
               occupation of the Premises;

         (b)   any breach, violation or non-performance of any covenant,
               condition or agreement set forth in the present Lease on the part
               of Tenant to be fulfilled, kept, observed or performed;

         (c)   the conduct or management of or from any work or thing whatsoever
               done, or not done, in or about the Premises by the Tenant, its
               agents, employees or contractors, or arising from any act of
               negligence by the Tenant or any of its agents, employees or
               contractors; and

         (d)   the failure of the Tenant to fully, faithfully and punctually
               comply with all of the legitimate requirements of any public or
               quasi-public authority having jurisdiction over the Premises;

         provided that Tenant shall not be obliged to indemnify and hold
         harmless the Landlord for or against any claims, liabilities or
         payments contemplated by this Clause 18.04 to the extent they arise
         from Landlord's intentional or gross fault.

18.05    Notwithstanding any express or implicit obligation on the part of
         Landlord to insure and further notwithstanding any obligation on the
         part of Tenant to contribute to the payment of Landlord's premiums,
         Tenant acknowledges that Tenant shall remain responsible for its
         negligence and those of all persons for whom it is in law responsible,
         that no insurable interest is conferred upon the Tenant under any of
         Landlord's insurance policies and that Tenant shall have no right to
         recover any proceeds thereunder or claim any right or title to such
         proceeds.
<PAGE>

                                                                              20

SECTION  XIX.  SECURITY DEPOSIT
-------  ----  ----------------

19.01  Forthwith upon execution of this Lease, the Tenant shall furnish the
       Landlord with the Security Deposit, to be applied on account of the
       instalments of Rent and Tenant's estimated contributions to Operating
       Expenses, Real Estate Taxes and Tax on Capital attributable to the month
       of January 2000 and on account of the instalments of Rent and Tenant's
       estimated contributions to Operating Expenses, Real Estate Taxes and Tax
       on Capital for the month of July, 2000.

SECTION  XX. FIRE AND DESTRUCTION OF PREMISES
-------  ------------------------------------

20.01  In the event the Building is destroyed or damaged by fire or other cause
       and as a result thereof, the Premises will not be able to be used for the
       purpose for which they have been leased by Tenant for at least thirty
       (30) days following the date of the damage or destruction, Tenant shall
       have the option to cancel this Lease by giving Landlord written notice to
       such effect within such thirty (30) day delay. In the event that Tenant
       exercises this right of cancellation, the Lease shall expire forthwith
       and Tenant shall immediately surrender the Premises and all interest
       therein to Landlord and shall pay rent only to the date of the damage or
       destruction. If Tenant's right to cancel this Lease does not apply in
       respect of the damage or destruction or if Tenant has failed to exercise
       such right, Landlord shall, within ninety (90) days of the damage or
       destruction, give notice to Tenant in writing whether or not Landlord
       intends to restore or rebuild substantially the same nature and quality
       structure (and this, whether or not the Premises are affected). If
       Landlord's notice advises that Landlord has decided not to so restore or
       rebuild, this Lease shall expire forthwith and Tenant shall immediately
       surrender the Premises and all interest therein to Landlord. In all
       events contemplated in this Clause 20.01, rent shall be diminished in
       proportion to the extent to and the time during which the Premises cannot
       be used for the purpose for which they have been leased by Tenant. In no
       event shall Landlord be liable to Tenant for any loss or damage
       occasioned by such damage or destruction or by any delays in substantial
       completion of any repair or replacement contemplated by this Clause
       20.01.

20.02  In the event Landlord elects to restore or rebuild as aforesaid, it is
       expressly understood and agreed that the extent of Landlord's obligation
       will be to rebuild or restore to substantially the condition in which the
       Building and Premises were initially delivered to Tenant as modified to
       be consistent with the plans, specifications and design criteria selected
       by Landlord at the time of reconstruction. Nothing herein contained shall
       be construed to oblige the Landlord to repair or reconstruct any
       alterations, improvements or property of the Tenant. On the contrary, all
       other improvements in and to the Premises shall be the responsibility of
       Tenant who shall be obliged to repair and re-fixture to a standard at
       least equivalent to that which existed prior to the date of damage and
       destruction, the proceeds of insurance being carried by Tenant in respect
       to its property and improvements to be held in trust jointly by Landlord
       and Tenant for the purpose of said repair and replacement.
<PAGE>

                                                                              21

SECTION XXI. NON-RESPONSIBILITY OF LANDLORD
------- -----------------------------------

21.01  To the extent permitted by law, the Landlord shall not be liable for any
       damage, loss, injury or destruction arising in or upon the Land, Building
       or Premises to any property or person nor for any personal injuries
       sustained by the Tenant, its officers, servants, employees, agents,
       invitees or licensees which may result at any time from any reason or
       cause whatsoever, the Tenant hereby covenanting to indemnify the Landlord
       of and from all loss, costs, claims or demands in respect of such damage,
       loss, injury or destruction. Without limiting the generality of the
       foregoing, the Landlord shall not under any circumstances be liable for
       any damage resulting from water, steam, rain or snow which may leak into,
       issue or flow from the pipes or plumbing or sprinklers or from any other
       part of the Building or from any other place or quarter. No event or
       occurrence herein contemplated shall be deemed an eviction or disturbance
       of the Tenant's enjoyment of the Premises nor render the Landlord liable
       in damages to the Tenant nor entitle the Tenant to claim any diminution
       in Rent or in any other amount payable hereunder.

21.02  The Landlord shall not be liable for failure to perform any of its
       obligations hereunder nor be responsible for any damage resulting from
       delays in the construction and/or finishing of the Premises and/or the
       interruption or modification of any service or facility provided in the
       Building caused or required by strikes, riots, labour controversies,
       accidents, fault or delays caused by Tenant or third parties, fuel
       shortages, Acts of God or of the Queen's enemies, fire or other casualty,
       force majeure, cas fortuit, superior force or any other cause beyond the
       --------------------------
       Landlord's reasonable control, other than Landlord's financial condition,
       and Landlord shall not be responsible for any acts or omissions of any
       other tenants or occupants of the Building or other third parties. No
       such occurrence or event shall be deemed an eviction or disturbance of
       the Tenant's enjoyment of the Premises nor render the Landlord liable in
       damages to the Tenant nor entitle the Tenant to claim any diminution in
       Rent or other amounts payable hereunder, but in any such event the
       Landlord shall without delay take all reasonable steps to remove the
       cause of such interruption.

21.03  Without limiting the generality of the foregoing, the Landlord shall not
       be liable for any damage of any kind or nature to the Premises or to any
       goods, merchandise, stock-in-trade, assets, fixtures, furniture,
       accessories or equipment belonging to the Tenant or to the Tenant's
       officers, servants, employees, agents, invitees or licensees resulting
       from robbery, burglary, theft or acts of violence of any kind, and the
       Tenant will hold the Landlord free, clear and harmless from any liability
       or loss resulting therefrom.

SECTION XXII. INSURANCE
------- ---------------

22.01  Throughout the Term and any renewal thereof, Tenant shall take out and
keep in force:

       (a)   comprehensive general liability insurance (including blanket
             contractual liability coverage) with respect to the business
             carried on in or from the Premises and the use and occupancy
             thereof for bodily injury and death and damage to property of
             others in an amount of at least five million dollars
             ($5,000,000.00) (indexed annually based upon percentage increases
             in the Cost of Living Index - All Items - Canada as determined by
             Statistics Canada or its successors) for each
<PAGE>

                                                                              22

             occurrence or such greater amount as Landlord may from time to time
             reasonably require;

       (b)   all-risks insurance including the perils of fire, extended
             coverage, leakage from sprinkler and other fire protective devices,
             earthquake, collapse and flood in respect to furniture, equipment,
             inventory and stock-in-trade, fixtures, (plate glass if
             appropriate) and leasehold improvements located within the Premises
             and such other property located in or forming part of the Premises,
             including all mechanical or electrical systems (or portions
             thereof) installed by Tenant in the Premises, the whole for the
             full replacement cost (without depreciation) in each such instance;

       (c)   business interruption insurance in an amount equal to at least one
             (1) years' Rent, Tenant's Proportionate Share of Real Estate Taxes,
             Operating Expenses and Tax on Capital, and the Electrical Amount or
             such greater amount as Landlord may from time to time reasonably
             require;

       (d)   tenants' legal liability insurance in an amount equal to the
             replacement cost of the Premises or such greater amount as Landlord
             may from time to time reasonably require; and

       (e)   such additional insurance as Landlord, acting reasonably, may from
             time to time require.

22.02  All policies of insurance shall (i) be in form satisfactory to Landlord,
       (ii) be placed with insurers acceptable to Landlord, (iii) provide that
       they will not be cancelled or permitted to lapse unless the insurer
       notifies Landlord in writing at least thirty (30) days prior to the date
       of cancellation or lapse, and (iv) be primary and not excess or
       contributing with any other insurance available to the Landlord or others
       insured thereunder. Each such policy shall name Landlord and any other
       party required by Landlord, including but not limited to its property
       manager and hypothecary creditors, as an additional insured(s) as its (or
       their) interest(s) may appear. Each liability policy will contain a
       provision of cross-liability and severability of interests as between
       Landlord and Tenant. All other policies referred to above shall contain a
       waiver of subrogation rights which Tenant's insurers may have against
       Landlord, Landlord's insurers and persons under Landlord's care and
       control. Notwithstanding anything contained in this Lease to the
       contrary, Tenant hereby releases and waives any and all claims against
       Landlord and those for whom Landlord is in law responsible with respect
       to occurrences which are or which are required to be insured against by
       Tenant hereunder. Tenant shall from time to time furnish Landlord with
       certified copies of all such insurance policies and the renewals thereof.

22.03  Should Tenant fail to take out or keep in force such insurance, Landlord
       will have the right to do so and to pay the premiums therefor and in such
       event Tenant shall repay to Landlord the amount paid as premiums as
       additional rental on demand.

22.04  Landlord's property insurance policies shall contain a waiver of
       subrogation rights which the insurers under such policies may have
       against Tenant, Tenant's insurers and persons under Tenant's care and
       control.
<PAGE>

                                                                              23

SECTION XXIII. DEFAULT
------- ------ -------

23.01 In any of the events following, namely:

       (a)   if the Tenant shall fail to pay the Landlord any instalment of Rent
             or any additional rent after it shall have become due and payable
             as herein provided and such instalment has not been paid in full
             within five (5) days following Landlord's written notice to Tenant
             of such failure to pay; provided, however, that Tenant shall no
             longer be entitled to the benefit of any such notice of non-payment
             in the event that it has failed on at least two (2) occasions in
             any period of 365 consecutive days to pay any such instalment after
             it shall have become due and payable as herein provided;

       (b)   if the Tenant shall be declared dissolved, bankrupt or wound-up or
             shall make any general assignment for the benefit of its creditors
             or take or attempt to take the benefit of any insolvency, winding-
             up or bankruptcy legislation or if a petition in bankruptcy or in
             winding-up or for reorganisation shall be filed by or granted
             against the Tenant or if a receiver or trustee be appointed for or
             enter into physical possession of the property of the Tenant, or
             any part thereof;

       (c)   if the Tenant shall assign, sublet or permit the use of the
             Premises by others except in a manner herein permitted;

       (d)   if any seizure is practised against the property of the Tenant in
             the Premises;

       (e)   if the Tenant shall fail to take possession of the Premises or if
             the Tenant should vacate or abandon the Premises;

       (f)   if any insurance carried by the Landlord be cancelled in
             consequence of the business carried on by the Tenant or in
             consequence of anything brought into or stored in the Premises by
             the Tenant;

       (g)   if the Tenant shall default in the performance of any of its other
             obligations under this Lease including, without limitation, the
             obligation to pay business and water taxes in a timely manner, or
             fail to effect any payment that may result in a charge, lien,
             encumbrance or other right on the Land, Building or Premises or the
             property located therein or shall violate any of the rules and
             regulations hereinafter set forth or hereafter to be established by
             the Landlord and such default continues for five (5) days following
             receipt of written notice thereof;

       this Lease may be resiliated ipso facto at the option of the Landlord
       upon written notice to the Tenant to such effect, and this
       notwithstanding any legislation to the contrary including without
       limitation Article 1863 of the Civil Code of Quebec. It is expressly
       agreed that such right of termination shall be in addition and without
       prejudice to all other rights and recourses as provided by law or herein,
       the Landlord may re-enter and re-let the Premises to whomsoever it may
       choose without further notice or demand being necessary and may recover
       from the Tenant all amounts due hereunder at the date of such
       termination, expenses of such re-letting (including any inducements,
       allowances, commissions, repairs, decorating, alterations or improvements
       necessitated thereby) and rental for the six (6) months next succeeding
       the date of such termination or such longer period as may be allowed by
       law, all of which shall immediately become due and payable, the whole
       without
<PAGE>

                                                                              24

       diminishing or extinguishing the liability of any guarantor or
       indemnifier of the obligations of Tenant under this Lease. As used
       herein, the expression "rental" shall mean the Rent, Tenant's
       Proportionate Share of Real Estate Taxes, Operating Expenses and Tax on
       Capital, the Electrical Amount and all other additional rents payable
       hereunder, without prejudice to such claims as Landlord may have from
       time to time for loss of rental attributable to any subsequent period or
       to any other claims, rights and recourses that Landlord may have in the
       circumstances arising from time to time. Any sums received by the
       Landlord from or for the account of the Tenant when the Tenant is in
       default hereunder may be applied, at the Landlord's option, to the
       satisfaction in whole or in part of any obligation of the Tenant then due
       hereunder in such manner as the Landlord sees fit and regardless of any
       imputation by law or any designation or instruction of the Tenant to the
       contrary.

23.02  In the event of the bankruptcy, insolvency or winding-up of the Tenant,
       there shall immediately become due and exigible in favour of the
       Landlord, on account of the damages, costs and losses (including, without
       limitation, loss of rentals and additional rentals) which may be suffered
       by the Landlord as a consequence of the bankruptcy, insolvency or
       winding-up of the Tenant, an amount equal to the amount of the Security
       Deposit or the amount of the letter of credit, as the case may be. The
       entitlement of the Landlord to the foregoing amount shall not be affected
       or impaired by the bankruptcy, repudiation or disclaimer of this lease or
       any other decision taken by any trustee, liquidator, receiver, referee or
       any other person appointed under or pursuant to any agreement or by any
       court or other body of competent jurisdiction under any bankruptcy,
       insolvency, winding-up or other legislation in force from time to time.
       The rights of the Landlord under this Section 23.02 are in addition to
       and not in substitution for the rights of the Landlord under Section
       23.01. In addition to the foregoing and without prejudice to the
       Landlord's other rights and recourses hereunder, in the event of the
       bankruptcy of the Tenant, there shall immediately become due and exigible
       in favour of the Landlord, on account of accelerated rent, an amount
       equal to rental and additional rental for a period of three (3) months
       next following the bankruptcy or for such longer period of time as may be
       allowed by any applicable bankruptcy or insolvency legislation in force
       from time to time. Furthermore, in the event of Tenant's continued
       occupancy of the Premises after the filing of a proposal or a notice of
       intention to file a proposal pursuant to the provisions of the Bankruptcy
       and Insolvency Act, S.C. 1992 C-27 and any amendments thereto or
       replacements therefor and said continued occupancy commences on a day
       which is not the first day of any calendar month, any Rent or other
       amounts payable on a monthly basis hereunder for such month and for any
       other partial month of the Term shall be calculated on a per diem basis
                                                                --  ----
       and be paid in advance.

23.03  In the event of any default by Tenant under this Lease or in the
       circumstances of Section 23.02 hereof applying, Landlord shall have the
       right to immediately draw in full upon any letter of credit held as
       security for the fulfilment of Tenant's obligations hereunder or for the
       payment of any amounts that may be owing to the Landlord hereunder, and
       to retain the amount so drawn as its absolute property or to apply the
       same as a cash security deposit pursuant to the provisions of Section
       19.01 hereof.

23.04  If Landlord retains the services of a lawyer to enforce the execution of
       any of Tenant's obligations under the Lease or to retake possession of
       the Premises and Landlord is successful in obtaining enforcement of such
       execution or in such retaking of possession, Tenant shall pay to Landlord
       on demand, in
<PAGE>

                                                                              25

       addition to judicial costs otherwise payable by Tenant, all extra-
       judicial or solicitor and client disbursements and legal fees (which may
       be calculated on an hourly basis) incurred by Landlord for the foregoing
       purpose. If Tenant retains the services of a lawyer to enforce the
       execution of any of Landlord's obligations under the Lease and Tenant is
       successful in obtaining enforcement of such execution, Landlord shall pay
       to Tenant on demand, in addition to judicial costs otherwise payable by
       Landlord, all extra-judicial or solicitor and client disbursements and
       legal fees (which may be calculated on an hourly basis) incurred by
       Tenant for the foregoing purpose.

SECTION XXIV. MODIFICATION
------- ----- ------------

24.01  Notwithstanding any provision of this Lease or any Schedule appended
       hereto to the contrary, the Landlord reserves the right at any time and
       from time to time to change, alter, modify or expand the Building as the
       Landlord in its sole and entire discretion deems expedient, same to
       include, without limitation, the right of the Landlord to add additional
       floors to the Building, to expand the length or width of the Building,
       and/or to change, alter and amend the location, dimensions or
       specifications of the pipes, wires, ducts, conduits, utilities,
       mechanical systems, common areas and other Building services (including
       such as may be contained in the Premises) and the right to block light or
       views. The Tenant waives and renounces to any and all claims as a
       consequence of the foregoing providing the physical dimensions of the
       Premises remain substantially as contemplated herein. No action on the
       part of Landlord hereunder shall constitute an eviction hereunder or a
       change in the form or destination of the Premises or any diminution of
       the peaceable enjoyment by the Tenant. In the event any such change
       results in additional land being utilised to service the Building, such
       additional land shall be deemed included in the definition of "Land" for
       all purposes. In the event any change contemplated herein results in a
       change in the rentable area of the Building, the Tenant's Proportionate
       Share shall be modified accordingly.

24.02  The Landlord reserves the right to construct other buildings, structures
       or improvements on the Land and to make such alterations and/or
       improvements to the Building and create such servitudes and other rights
       as may be necessary or desirable in order to permit any new structure or
       structures to be connected to the Building.

24.03  If Landlord has already established or elects or is obliged to establish
       common areas or facilities, including without limitation, a conference
       centre or a day care center, in the Building for the benefit and use of
       the tenants and their employees, Tenant acknowledges that the rentable
       area of the Premises shall at such time or times be deemed to include or
       to be increased to include, as the case may be, Tenant's Proportionate
       Share of the areas of such common areas or facilities for purposes of
       calculating Rent, Tenant's contribution to Real Estate Taxes, Operating
       Expenses and Tax on Capital, the Electrical Amount and other additional
       rentals owing hereunder.

       Tenant shall have the right of use of such common areas and facilities in
       common with other tenants of the Building, such use to be governed by
       such rules and regulations as may from time to time be established by
       Landlord. Landlord reserves the right at any time to discontinue the
       existence of any such common areas or facilities in which event the
       rentable area of the Premises shall be deemed to be decreased to exclude
       therefrom Tenant's Proportionate Share of the area thereof for purposes
       of calculating Rent,
<PAGE>

                                                                              26

       Tenant's contributions to Real Estate Taxes, Operating Expenses and Tax
       on Capital, the Electrical Amount and other additional rentals owing
       hereunder.

SECTION XXV. ADDITIONAL PROVISIONS
------- ---- ---------------------

25.01  Additional Provisions

       (a)   LANDLORD: In the event of any sale or lease of the Building, the
             --------
             Landlord shall be and hereby is entirely released and relieved from
             all covenants and obligations of the Landlord hereunder, provided
             such purchaser or lessee agrees to assume and carry out any and all
             such covenants and obligations.

       (b)   AMENDMENT OF LEASE: No assent or consent to changes in or waiver of
             ------------------
             any part of this Lease shall be deemed or taken as made unless the
             same be done in writing and attached to or endorsed hereon by
             Landlord and Tenant. No covenant or term of the present lease
             stipulated in favour of the Landlord or Tenant shall be waived,
             except by express written consent of the other, whose forbearance
             or indulgence in any regard whatsoever shall not constitute a
             waiver of the covenant, term or condition to be performed; and
             until complete performance of the said covenant, term or condition,
             the creditor thereof shall be entitled to invoke any remedies
             available under this Lease or by law despite such forbearance or
             indulgence.

       (c)   LATE PAYMENTS: The acceptance by the Landlord of any post-dated
             -------------
             cheque or money owing for Rent or additional rent after its due
             date is to be considered as a mode of collection only, without
             novation of, nor derogation from, any of Landlord's rights,
             recourses and actions in virtue of this Lease which demands
             punctual payment of all obligations.

             All sums owing by Tenant under this Lease not paid when due shall
             thereafter bear interest at a rate equivalent to five percent (5%)
             per annum above the prime lending rate of The Toronto-Dominion Bank
             from time to time in effect. Notwithstanding the foregoing, Real
             Estate Taxes, Electrical Amount and any other utility charges or
             taxes not paid when due pursuant to the Lease shall bear interest
             at a rate equivalent to the greater of five percent (5%) per annum
             above the prime lending rate of The Toronto-Dominion Bank from time
             to time in effect and the interest on arrears charged by the
             relevant public or taxing authorities.

       (d)   TENANT: All the covenants herein contained shall be deemed to have
             ------
             been made by and with the heirs, executors, administrators and
             permitted assigns or successors of each of the parties hereto, and
             if more than one Tenant, the covenants herein contained on the part
             of the Tenant shall be construed as being several as well as joint
             and where necessary reference to the Tenant as being of the
             masculine gender or in the singular number shall be construed as
             being in the feminine or neuter gender or in the plural number.

       (e)   BROKERAGE COMMISSION: As part of the consideration for the granting
             --------------------
             of this Lease, the Tenant represents and warrants that no broker,
             agent or other intermediary introduced the parties or negotiated or
             was instrumental in negotiating or consummating this Lease other
             than the
<PAGE>

                                                                              27

             Real Estate Broker named in Section 1.01 hereof, whose commission
             shall be paid by the Tenant.

       (f)   NOTICES AND DEMANDS: Subsequent to the Commencement Date, any
             -------------------
             notice or demand given by the Landlord to the Tenant shall be
             deemed to be duly given when served upon or mailed to the Tenant at
             the address of the Premises. The Tenant elects domicile at the
             Premises for the purpose of service of all notices, writs of
             summons or other legal documents in any suit at law, action or
             proceeding which the Landlord may take under or in connection with
             this Lease.

       (g)   PUBLICATION OF LEASE: The Tenant will not publish this Lease or any
             --------------------
             extract or summary thereof. Upon the Tenant's request, the Landlord
             will execute with the Tenant for registration purposes only a short
             form of this Lease in form and substance acceptable to Landlord but
             which in any event shall not contain any of the financial
             information (including, without limitation, the Rent) set out in
             this Lease. Nothing in the short form of lease shall be construed
             or interpreted so as to amend in any manner the provisions of this
             Lease, the intention of the Landlord and the Tenant being that this
             Lease shall govern for all purposes and that the short form of
             lease is only to be filed for purposes of conservation and
             consultation pursuant to Article 2985 of the Civil Code of Quebec.
             The Tenant will radiate and discharge such publication at the
             expiry or other termination of this Lease and in the event that it
             fails to do so, Landlord may do so at Tenant's expense, and the
             Tenant hereby appoints Landlord and any officer or employee of
             Landlord (or, as the case may be, Landlord's managing agent for the
             Building and any officer or employee of such agent) as its attorney
             with the right and power to execute in the name of the Tenant any
             such documents as will be required in order to effect such
             radiation and discharge.

       (h)   ADDITIONAL RENT: In addition to Rent, all monies payable pursuant
             ---------------
             to this Lease, as well as all sales, business transfer, goods and
             services and value added taxes, rates and duties or similar taxes,
             rates and duties which may at any time hereafter be imposed upon or
             by reference to the Rent and other sums owing by Tenant hereunder,
             shall be payable by Tenant to Landlord immediately when due without
             reduction, deduction or compensation whatsoever and shall be
             additional rent and collectible as such.

       (i)   PRIOR AGREEMENTS: The present Lease cancels and supersedes all
             ----------------
             prior leases and agreements, written or otherwise, entered into by
             the Landlord and the Tenant regarding the Premises leased
             hereunder. This Lease and such rules and regulations as may be
             adopted and promulgated by the Landlord from time to time
             constitute the entire agreement between the parties.

       (j)   RIGHTS CUMULATIVE: No right or remedy herein conferred upon or
             -----------------
             reserved to the Landlord is intended to be exclusive of any other
             right or remedy herein or by law provided, but such rights shall be
             cumulative and in addition to every other right or remedy herein or
             by law provided.
<PAGE>

       (k)   PERFORMANCE BY THE LANDLORD: If the Tenant fails to pay any sum to
             ---------------------------
             any third party or perform any other obligation under this Lease,
             the Landlord may, without notice or mise en demeure to any person,
             pay the said sum or perform the said obligation in the place and
             stead of the Tenant who shall be thereupon obliged to repay the
             said sum and/or reimburse any costs incurred by the Landlord in
             performing such obligation, together with a fee equal to twenty
             percent (20%) of the amount paid or the costs incurred, as the case
             may be, the whole without prejudice to any other rights or
             recourses of the Landlord which may accrue in the circumstances.

       (l)   RENUNCIATION: Tenant hereby renounces to any rights which it may
             ------------
             have or acquire under the Constitut or Tenure System Act, 1977
                                       ------------------------------
             S.R.Q. Chapter C-64.

       (m)   SEVERABILITY: If any clause or provision (or any part of any clause
             ------------
             or provision) herein contained shall be adjudged invalid, the same
             shall not affect the validity of any other clause or provision of
             this Lease (or as the case may be, the remainder of any clause or
             provision in which it is found), or constitute any other cause of
             action in favour of either party against the other.

       (n)   GOVERNING LAW: This agreement shall be construed and interpreted in
             -------------
             accordance with the laws of the Province of Quebec.

       (o)   CAPTIONS: This captions appearing in this Lease have been inserted
             --------
             as a matter of convenience and for reference only and in no way
             define, limit or enlarge the scope or meaning of this Lease or any
             provision thereof.

       (p)   TIME OF THE ESSENCE: Landlord and Tenant hereby acknowledge that
             -------------------
             time is of the essence with respect to all delays and dates
             mentioned in the Lease.

       (q)   FREELY NEGOTIATED: The Tenant acknowledges that it has had the
             -----------------
             opportunity to consult with legal counsel in connection with the
             negotiation and execution of this Lease and Tenant further
             acknowledges that all provisions of this Lease have been freely and
             fully discussed and negotiated and that this Lease does not
             constitute a contract of adhesion.

SECTION XXVI. RULES AND REGULATIONS
------- ----- ---------------------

26.01  The rules and regulations respecting the Land and Building which are more
       fully set forth in Schedule "D" hereto shall, during the Term, be
       observed and performed by the Tenant, its officers, servants, employees,
       agents, invitees and licensees, and the Landlord shall have the right to
       make reasonable alterations and additions to such rules and regulations
       and to make such other and further reasonable rules and regulations as in
       its judgment may from time to time be required for the safety, care and
       cleanliness of the Land and Building including the Premises, and for the
       preservation of good order therein, and the same shall be observed and
       performed by the Tenant, its officers, servants, employees, agents,
       invitees and licensees. The Landlord may waive any one or more of these
       rules and regulations for the benefit of any particular tenant or
       tenants, but no such waiver by the Landlord shall be construed as a
       waiver of the rules and regulations in favour of any other
<PAGE>

                                                                              29

           tenant or tenants nor prevent the Landlord from thereafter enforcing
           any rules and regulations against all or any of the tenants in the
           Building. Furthermore, the Landlord, acting reasonably, may apply the
           rules and regulations in a different manner having regard to the
           different nature of businesses carried on by the tenants, within the
           Building. The Landlord agrees to notify the Tenant in writing of any
           changes in the rules and regulations.

SECTION XXVII. MORTGAGES AND SUBORDINATION
------- ------ ---------------------------

27.01  This Lease and all rights of Tenant hereunder shall be subject and
       subordinate at all times to any and all underlying leases, mortgages,
       hypothecs, deeds of trust or other security interests affecting the
       Building and/or the Land which have been executed or which may at any
       time hereafter be executed, and any and all extensions and renewals
       thereof and substitutions therefor. Tenant agrees to execute any
       instrument or instruments which Landlord may deem necessary or desirable
       to evidence the subordination of this Lease or to cede priority of its
       registration to any or all such underlying leases, mortgages, hypothecs,
       deeds of trust or other security interests.

27.02  Tenant covenants and agrees that if by reason of default by Landlord as
       lessee under any underlying lease in the performance of any of the terms
       or provisions of such underlying lease or by reason of a default under
       any mortgage, hypothec, deed of trust or other security interest to which
       this Lease is subject or subordinate and Landlord's title is terminated,
       it will attorn to the lessor under such underlying lease or the acquirer
       of the Building pursuant to any action taken under any such mortgage,
       hypothec, deed of trust or other security interest and Tenant will
       recognise such lessor or such acquirer as Tenant's lessor under this
       Lease.

27.03  Tenant waives the provisions of any statute or rule of law now or
       hereafter in effect which may give or purport to give the Tenant any
       right of election to terminate this Lease or to surrender possession of
       the Premises in the event any such proceeding to terminate the underlying
       lease is brought by the lessor under any such underlying lease or any
       such action is taken under any such mortgage, hypothec, deed of trust or
       other security interest and agrees that this Lease shall not be affected
       in any way whatsoever by any such proceedings.

27.04  Tenant agrees to execute and deliver, at any time and from time to time
       upon the request of Landlord or of the lessor under any such underlying
       lease, or of the holder of any such mortgage, hypothec, deed of trust or
       other security interest, any instrument which may be necessary or
       appropriate to evidence such attornment. Tenant shall execute and deliver
       such instrument (or instruments) within ten (10) Business Days after
       being requested to do so and failing which Landlord may do so on Tenant's
       behalf.

27.05  Tenant will upon request of Landlord furnish to the lessor under any
       underlying lease and/or to each creditor under a mortgage, hypothec, deed
       of trust or other security interest and/or to an actual or prospective
       purchaser, or emphyteutic lessee of Landlord's rights in and to the Land
       and/or Building and/or underlying lease a written statement that this
       Lease is in full force and effect and that the Landlord has complied with
       all its obligations under this Lease (or state those with which it has
       not complied) and any other
<PAGE>

                                                                              30

       reasonable written statement, document or estoppel certificate requested
       by any such lessor, creditor, purchaser or lessee.

SECTION XXVIII. SCHEDULES
------- ------- ---------

28.01 The Schedules are included in and form an integral part of this Lease.

SECTION XXIX. ENGLISH LANGUAGE
------- ----- ----------------

The parties have requested that this agreement of lease be prepared in the
English language. Les parties ont demande que la presente convention de bail
soit redigee en anglais.

IN WITNESS WHEREOF, the parties have signed these presents at the place first
hereinabove mentioned.

                                            CITE DE L'ILE DEVELOPMENTS INC.
                                            (Landlord)

___________________________________         Per:
Witness

___________________________________
Witness

                                            NUANCE COMMUNICATIONS LIMITED
                                            (Tenant)

/s/ Signature Illegible                     Per: /s/ Signature Illegible
-----------------------------------              -----------------------------
Witness REBECCA DURDAN                           OKAHAM SMITH

/s/ Signature Illegible
-----------------------------------
Witness Toula Vertin

___________________________________         Per: _____________________________
Witness

___________________________________
Witness
<PAGE>

                                 SCHEDULE "A"

The original lot number five thousand eight hundred and ninety one (5,891) on
the official cadastre of the Montreal paroisse, registration division of
Montreal; having an area of six thousand one hundred and ninety nine point 6
square meters (6,199.6m 2). With the building and or improvements erected
thereon. (lot 5891 herein described is defined for these purposes to be "Phase
I").
<PAGE>

                                 Schedule "B"

                                [CHART OMITTED]
<PAGE>

                                 Schedule "D"

                             RULES AND REGULATIONS

1.       The Tenant shall follow such instructions, if any, as Tenant may from
         time to time receive from Landlord relating to the maintenance and care
         of the heating, ventilating and air-conditioning equipment contained
         within the Premises.

2.       The Tenant shall not permit the introduction of any machine or
         electrical or mechanical device of a nature to occasion objectionable
         noise or vibration or be injurious to the Premises or Building or to
         any of the occupants thereof.

3.       The Tenant shall not without the written consent of the Landlord use
         any electric current except that supplied from the general system
         installed in the Building, and the Landlord shall not be responsible in
         damages by reason of any failure of such current. If the Landlord
         grants the Tenant permission to introduce any special electric power,
         telegraphic or telephone connection, the Landlord reserves the right to
         direct where and how wires are to be introduced, and without such
         direction no boring or cutting shall be permitted. No radio or
         television serials shall be installed by Tenant within the Building or
         Premises.

4.       The Tenant shall keep the Premises in a good state of preservation and
         shall not suffer any accumulation of useless property or rubbish
         therein. No animals shall be kept in or about the Premises.

5.       Any breakage of glass in the Premises shall be charged to the Tenant
         unless caused by the Landlords or those for whom the landlord is
         representing

6.       The Tenant, its employees, clerks or servants, shall not use the
         Premises for the purpose of lodging rooms, or for any immoral or
         unlawful purpose, and shall not make or permit any improper noises in
         the Building or obstruct or interfere in any way with other tenants or
         those having business with them, and shall not throw anything out of
         the windows or doors or down through the passages or skylights of the
         Building.

7.       The workmen of the Landlord must be employed by the Tenant at the
         Tenant's expense for painting, lettering, interior moving and other
         similar work that may be done in the Premises.

8.       The Tenant shall not mark, paint, drill into or in any way deface the
         walls, ceilings, partitions, floors, wood, stone or iron work, or any
         other appurtenance to the Premises.

9.       The skylights and/or windows that reflect or admit light into any place
         in the Building shall not be covered or obstructed by the Tenant.

10.      The sidewalks, entries, passages, halls, elevators and stairways shall
         be under the exclusive control of the Landlord and shall not be
         obstructed by the Tenant, or used by it for any other purpose than the
         ingress and egress to and from its respective offices or places of
         business.

11.      Furniture, accessories and equipment, as well as bulky articles and
         construction materials which the Tenant may require from time to time,
         shall be carried to the Premises at such hour and in such manner as the
         Landlord may designate, the whole subject to arrangements for adequate
         security and supervision, at the cost of Tenant, having been previously
         made. The Tenant agrees to pay the Landlord for the use of elevators
         and other Building services used in respect to the foregoing in
         accordance with the Landlord's prevailing rates from time to time in
         effect. Any damages which may be caused to the Building in the carrying
         of furniture, bulky articles or construction materials to or from the
         Premises shall be the sole responsibility of the Tenant.

12.      The Tenant shall not employ any person or persons other than the
         janitor staff of the Landlord for the purpose of cleaning and taking
         charge of the Premises and for such purposes the janitor of the
         Landlord shall be provided with a pass-key and shall be allowed
         admission into the Premises.

13.      Should a directory board be provided by Landlord in the Building, said
         board will be installed in a conspicuous place and its capacity will be
         such that it may contain the numbers of rooms and names of the tenants,
         however, it shall not include other than the firm name of the Tenant,
         same to be provided at the Tenant's cost.
<PAGE>

14.      The Landlord shall not be responsible for any damage to the furniture,
         effects, goods or equipment of the Tenant while being transported or
         moved to and from the Premises or in the elevators, corridors, basement
         or other premises of the Landlord.
<PAGE>

                                                                         Page 2

15.      If any sign, advertisement or notice shall be inscribed, painted or
         affixed by the Tenant on any part of the Premises or Building without
         the prior written consent of the Landlord, the Landlord shall be at
         liberty to forthwith remove same at Tenant's expense. Interior signs on
         doors will be inscribed, painted or affixed for the Tenant by the
         Landlord at the expense of the Tenant and shall be of a size, color and
         style acceptable to the Landlord.

16.      The Tenant shall not place any additional locks upon any doors of the
         Premises without written permission and shall not permit any duplicate
         keys to be made therefor, but shall use only additional keys obtained
         from the Landlord at the expense of the Tenant. The Tenant shall
         surrender to the Landlord at the termination of this Lease all keys to
         the Premises and the Building.

17.      The Tenant shall not perform any acts which may injure the Premises or
         be a nuisance to other tenants of the Building and shall forthwith upon
         the request of the Landlord discontinue all acts or practices in
         violation of this regulation and repair any damage or injury to the
         Premises caused thereby.

18.      The Landlord reserves the right to inspect all freight to be brought
         into the Building and to exclude from the Building all freight which
         violates any of these rules and regulations or the Lease of which these
         rules and regulations are a part.

19.      The Landlord shall have the right to prohibit any advertising by the
         Tenant which, in its opinion, tends to impair the reputation or
         character of the Building and upon written notice from the Landlord,
         the Tenant shall refrain from or discontinue such advertising.

20.      Canvassing, soliciting and peddling in the Building is prohibited and
         the Tenant shall co-operate to prevent the same.

21.      The Tenant shall have no right to advertise by using the words
         "LIQUIDATION SALE", "AUCTION SALE", "FORCED TO VACATE", "GIVING UP
         LEASE", or "GIVING UP BUSINESS", or make use of terms and phrases
         denoting same or having similar meaning. The Landlord may remove such
         signs or advertising without any recourse in damages against the
         Landlord which the Tenant herein expressly waives.

22.      The Tenant shall not install window shades, venetian blinds, curtains
         or drapes of any kind or description without the Landlord's prior
         written approval.

23.      The Tenant shall not lay linoleum, rubber, cork or other floor
         coverings, without Landlord's prior written approval. If Landlord
         grants Tenant permission to lay such linoleum, rubber, cork or other
         floor coverings, same shall not come in direct contact with the floor
         and an interlining of builder's deadening felt shall be first affixed
         to the floor by a paste or other adhesive which may be readily removed
         with water.

24.      If any apparatus used or installed by the Tenant requires a permit as a
         condition for installation, the Tenant must file a true copy of such
         permit with the Landlord.

25.      All persons entering and leaving the Building between the hours of 6:00
         p.m. and 8:00 a.m. on Business Days and all persons entering and
         leaving the Building on Saturdays, Sundays, and holidays shall register
         in the books kept by the Landlord at or near the entrance. Between the
         hours of 6:00 p.m. and 8:00 a.m. on Business Days and on Saturdays,
         Sundays, and holidays, the Landlord will have the right to prevent any
         person from entering or leaving the Building unless provided with a key
         to the Premises to which such person seeks entrance, or a pass issued
         and signed by the Tenant upon the letterhead of the Tenant and
         countersigned by the Landlord. Any persons found in the Building at
         such time without such keys or passes will be subject to the
         surveillance of the employees and agents of the Landlord.

26.      The Tenant undertakes to abide by and participate in any fire drills or
         other similar manoeuvres called or arranged by the municipality, fire
         department, or the Landlord for the security and protection of the
         Building and the tenants thereof.

27.      The Landlord shall have the exclusive right to supply and sell or to
         cause to be supplied and sold all coffee, soft drinks, cigarettes,
         sandwiches and confections and to install or cause to be installed all
         vending machines, provided that the Tenant shall have the right to
         prohibit all such sales and installations in the Premises by giving
         notice in writing to that effect to the Landlord.
<PAGE>

28.      The Tenant shall not place any debris, garbage, trash or refuse or
         permit the same to be placed or left in or upon any part of the
         Building outside of the Premises except areas, if any,
<PAGE>

                                                                          Page 3

                  designated by Landlord from time to time for such purposes. If
                  the Tenant is using perishable articles or generates wet
                  garbage, the Tenant shall provide suitable storage facilities
                  approved by the Landlord in writing. Wet garbage shall at no
                  time be mixed with normal, dry, office waste.

29.      The Tenant shall not permit or allow any odours, vapours, steam, water,
         vibrations, noises or other undesirable effects to emanate from the
         Premises or any equipment or installation therein which, in the
         Landlord's opinion, are objectionable or cause any interference with
         the safety, comfort or convenience of other tenants and occupants of
         the Building by the Tenant or the occupants and tenants thereof or
         their agents, servants, invitees or employees.

30.      The Tenant undertakes to install and maintain at its cost fire
         extinguishers and such other fire protection equipment and fire-warning
         devices required or recommended by the Landlord's insurers or any
         governmental authority having jurisdiction over the Premises or the
         business conducted therein.

31.      The Tenant, its employees and agents, shall not smoke in any or all of
         the common areas and facilities of the Building which the Landlord may,
         from time to time, designate to be non-smoking area.

32.      In the event that in accordance with the terms and conditions of the
         Lease, exterior parking facilities are provided to Tenant, unless
         stipulated expressly to the contrary in the Lease, the Landlord
         reserves the right to at any time and from time to time designate the
         area or areas within which the Tenant must park and prohibit the Tenant
         from parking in any areas other than those so designated.
<PAGE>

                                 Schedule "E"

                MINIMUM BUILDING STANDARDS FOR TENANT FINISHES

The tenant acknowledges that the Tenant's finishings of the premises will
conform to the following (minimum) standards:

1.       PARTITIONING: Floor to underside of suspended ceiling, 1/2" drywall,
         ------------
         each side of 2-1/2" steel studs complete with sound insulation. All
         drywall surfaces are to be taped, sanded, and painted to the Tenant's
         choice of colours. Ceiling baffles, as required, to be of similar
         construction to partition. Note that where partition meets exterior
         wall, removable section of induction unit cabinets must remain free and
         removable and insulation must be placed within said unit in same plane
         as partition. As well, building standard lead lined, filler panel to be
         installed above induction unit between window mullion (no piercing
         fasteners) and partition, as well as continuing partition in same plane
         above sloped perimeter ceiling band where ceiling baffles are required.

2.       DOORS, FRAMES & HARDWARE: The building standard interior doors will be
         ------------------------
         3'0" (three feet, zero inches) 8'6" (eight feet, six inches) high,
         mahogany stained oak veneer solid core doors and solid mahogany stained
         oak frames 4-3/4" x 1-3/4") building standard stain and lacquer finish
         with Sargent building standard heavy duty lock and passage sets and
         (minimum) 1-1/2 pairs of 4-1/2" x 4" brushed stainless steel hinges.
         Glass sidelights if requested, to be framed as per door frames using 4"
         base. Tenant entrance door to be building standard solid mahogany
         stained oak or glass doors.

3.       ELECTRICAL TELEPHONE OUTLETS: Standard duplex wall-mounted electrical
         ----------------------------
         receptacles and telephone outlets and/or standard floor monuments, all
         to be fed from the underfloor electrical/telephone/data raceway system
         or ceilings (provided that in an organized conduit ceiling
         distribution).

4.       FLOORING: All floors to be finished in either building standard 4th
         --------
         generation, thirty-five (35) oz. nylon carpet, or 12" x 12" plain vinyl
         or vinyl composite tiles.

5.       BASES: Serged carpet base in carpet areas, vinyl or rubber cove base in
         -----
         vinyl or vinyl composite tiled areas.

6.       LIGHTING: Building standard 18 2/3" x 56" air handling recessed
         --------
         fluorescent fixture with two warm white tubes. Note that all building
         standard lighting is wired using Electroconnect modular wiring.

7.       TENANT IDENTIFICATION ON SUB-DIVIDED FLOORS: To be consistent with
         -------------------------------------------
         building standard tenant identification signage.

8.       SPRINKLERS: Sprinkler layouts must conform to City of Montreal
         ----------
         requirements and those of Factory Mutual and heads must be semi-
         recessed chrome, except in elevator lobby where the heads are recessed
         (Royal Flush).

9.       AIR CONDITIONING AND VENTILATION: Normal office air conditioning to be
         --------------------------------
         handled via air troffers integrated with air handling light fixture
         using non-supply fixtures for return air. Special air handling
         diffusers, if air quantities dictate, to be reviewed by Landlord.

10.      ELEVATOR  LOBBY FINISHES - FULL FLOOR  OCCUPANCY:  Full floor tenants
         -------------------------------------------------
         shall have the right to select hard finishes in the elevator lobby for
         floors, walls and elevator doors that is in conformity with the overall
         design of the premises for the entire floor. It is understood that
         reconstituted marble or reconstituted granite is not an acceptable
         finish. It is understood that the ceiling to be installed in the
         elevator
<PAGE>

         lobby shall conform to the building standard vaulted design constructed
         of one layer of 1/2" drywall taped, sanded and painted with lighting
         provided by three centered building standard halogen hanging lights.

THE LANDLORD RESERVES THE RIGHT TO MAKE CHANGES AT HIS DISCRETION WITHOUT
NOTICE.
<PAGE>

                                  SCHEDULE F
                                  ----------

                              SPECIAL CONDITIONS
                              ------------------

1.       OPTION TO CANCEL

         Provided Tenant is not in default in the performance of its obligations
under this Lease, Tenant has one option to cancel this Lease effective on
October 31, 2000. This option to cancel may only be exercised by written notice
received by Landlord not later than June 30, 2000. If not exercised in such
manner and within such delay, this option cancel shall be deemed conclusively to
have been waived and to be null and void and never to have existed.

IN WITNESS  WHEREOF THE PARTIES HERETO HAVE EXECUTED THIS SCHEDULE F ON THE DATE
FIRST MENTIONED IN THE LEASE OF WHICH THIS SCHEDULE F FORMS A PART.

                                            CITE DE L'ILE DEVELOPMENT INC.

______________________________              Per: ______________________________
(Witness)                                   ("Landlord")

------------------------------
(Witness)

                                            NUANCE COMMUNICATIONS LIMITED

/s/ Signature Illegible                     Per: /s/ Signature Illegible
------------------------------              ------------------------------
Witness REBECCA JORDAN                      GRAHAM SMITH

/s/ Signature Illegible
------------------------------
Witness Toula Vertin

______________________________              Per: ________________________
Witness                                     ("Tenant")

______________________________Witness<PAGE>

                                                                   EXHIBIT 10.10

                             NUANCE COMMUNICATIONS
                        VALUE-ADDED RESELLER AGREEMENT

     This Value-Added Reseller Agreement ("Agreement") is entered into as of
this 12th day of March, 1998 (the "Effective Date") between Nuance
Communications, a California corporation having a place of business at 1380
Willow Road, Menlo Park, CA 94025 ("Nuance"), and Periphonics Corporation, a
Delaware corporation, having a place of business at 4000 Veterans Memorial
Highway, Bohemia, NY 11716 ("VAR").

This Agreement consists of this page ("Signature Page"), the attached terms and
conditions ("Terms and Conditions"), and the exhibits ("Exhibits") listed and
initialed by each party below. The parties may enter into Exhibits from time to
time, which Exhibits shall be so indicated on this Signature Page, shall be
signed by each party, and shall be attached hereto. All such Exhibits shall be
designated with sequential numerical suffixes, such as A-1, A-2 and A-3.

                                            DATE     NUANCE     VAR

EXHIBIT A-__    Software                    _____    _____      _____

EXHIBIT B-__    Full Use License            _____    _____      _____

EXHIBIT C-__    Limited Use License         _____    _____      _____

EXHIBIT D-__    Professional Services       _____    _____      _____

EXHIBIT E-__    Minimum Terms               _____    _____      _____

EXHIBIT F-__    Technical Support Services  _____    _____      _____

EXHIBIT G-__    Nuance Trademarks           _____    _____      _____

EXHIBIT H-__    Purchase Order Form         _____    _____      _____

EXHIBIT I__     Amendment                   _____    _____      _____

EXHIBIT J__     Customer Specific...        _____    _____      _____

EXHIBIT K__     Escrow                      _____    _____      _____

AGREED TO:

NUANCE COMMUNICATIONS                         [VAR] Periphonics Corporation

BY: /s/ Signature Illegible                   BY: /s/ Signature Illegible

TITLE: V.P. ??                                TITLE: Sr. V.P.-Product
                                              Development

DATE: March 24, 1998                          DATE: March 25, 1998

[*] = CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO
THE OMITTED PORTIONS.

                                       1
<PAGE>

                             NUANCE COMMUNICATIONS
                         VALUE-ADDED RESELLER AGREEMENT
                              TERMS AND CONDITIONS

1.   DEFINITIONS. Capitalized terms used in this Agreement shall have the
following meanings:

"APPLICATION" shall mean the software designated as such in an EXHIBIT D
("PROFESSIONAL SERVICES").

"APPLICATION DOCUMENTATION" shall mean all information provided to VAR by Nuance
which describes the form, features or operation of an Application and which is
contained in a tangible medium, such as written format, tape, magnetic or other
media. Application Documentation shall include any Updates of Application
Documentation which Nuance may make available to VAR pursuant to this Agreement.

"APPLICATION SPECIFICATION" shall mean the technical and performance
specifications for an Application which are contained in and distributed with
the Application Documentation.

"APPLICATION WARRANTY" SHALL MEAN THE WARRANTY PROVIDED BY NUANCE FOR AN
APPLICATION DEVELOPED IN ACCORDANCE WITH EXHIBIT D ("PROFESSIONAL SERVICES") AS
FURTHER DEFINED IN EXHIBIT D ("PROFESSIONAL SERVICES").

"AUTHORIZED GRAMMAR SIZE" shall mean a Grammar of a size for which Nuance has
granted to VAR an Limited Use License pursuant to an EXHIBIT C ("LIMITED USE
LICENSE").

"AUTHORIZED PORTS" shall mean the number of Ports for which Nuance has granted
to VAR an Limited Use License pursuant to an EXHIBIT C ("LIMITED USE LICENSE").

"AUTHORIZED SUBLICENCEES" shall have the meaning assigned to it in SUBSECTION
3.1 ("FULL USE LICENSE") if for a Full Use License or SUBSECTION 3.2 ("LIMITED
USE LICENSE") if for an Limited Use License.

"BASIC TECHNICAL SUPPORT SERVICES" shall have the meaning assigned to it in
SECTION 13 ("TECHNICAL SUPPORT SERVICES").

"CONFIDENTIAL INFORMATION" shall have the meaning assigned to it in SECTION 6.1
("DESIGNATION").

"DESIGNATED EMPLOYEES" shall mean an agreed number of regular employees of VAR,
who shall be identified beforehand and in writing to Nuance by VAR, and who
shall communicate with Nuance concerning the provision of Technical Support
Services as provided in SECTION 13 ("TECHNICAL SUPPORT SERVICES AND IN SERVICE
DATA").

"DESIGNATED MARKET" shall mean certain types of End Users described as such in
an EXHIBIT B ("FULL USE LICENSE") or an EXHIBIT C ("LIMITED USE LICENSE").

"DIALOG DESIGN SERVICES" shall have the meaning assigned to it in EXHIBIT D
("PROFESSIONAL SERVICES").

"DISCLOSING PARTY" shall have the meaning assigned to it in SECTION 6.1
("DESIGNATION").

"DESIGNATED TERRITORY" shall mean worldwide unless another geographical
territory is defined in an EXHIBIT B ("FULL USE LICENSE") or an EXHIBIT C
("LIMITED USE LICENSE").

"DOCUMENTATION" shall mean all information provided to VAR by Nuance which
describes the form, features or operation of the Software and which is contained
in a tangible medium, such as written format, tape, magnetic or other media.
Documentation shall include any Updates of Documentation which Nuance may make
available to VAR pursuant to this Agreement.

                                       2
<PAGE>

"EFFECTIVE DATE" shall have the meaning assigned to it in the first paragraph of
this Agreement.

"END USER" shall mean an entity which acquires an Integrated System, including
the Software therein pursuant to an End User License Agreement, for its own use,
and not for further distribution.

"END USER LICENSE AGREEMENT" shall mean a written license agreement, in a
commercially reasonable form, containing at least the Minimum Terms, and
pursuant to which VAR shall grant sublicenses of the Software which is
incorporated into an Integrated System.

"ERROR" shall have the meaning assigned to it in SECTION 12.1 ("SOFTWARE
WARRANTY").

"EXHIBITS" shall have the meaning assigned to it in the second paragraph of this
Agreement.

"FEES" shall mean Software License Fees, Professional Services Fees, Technical
Support Services Fees, some or all of the foregoing.

"FULL USE LICENSE" shall have the meaning assigned to it in SECTION 3.2 ("FULL
USE LICENSE").

"GRAMMAR DESIGN AND DEVELOPMENT SERVICES" shall have the meaning assigned to it
in EXHIBIT D (PROFESSIONAL SERVICES).

"IN SERVICE DATA" shall mean the audio input to the Software resulting from End
User telephone calls to the Integrated System whether in a pilot, trial or
production use of the Integrated System.

"INTEGRATED SYSTEM" shall mean the VAR product configuration described as such
in an EXHIBIT A ("SOFTWARE").

"KEY" shall mean a numerical or alpha-numerical code which is necessary to gain
access to certain Software on certain media as delivered by Nuance hereunder.

"LIMITED USE LICENSE" shall have the meaning assigned to it in SECTION 3.2
("LIMITED USE LICENSE").

"MINIMUM TERMS" shall mean the End User License Agreement terms described in
EXHIBIT E ("MINIMUM TERMS").

"OBJECT CODE" shall mean computer software programs, not readily perceivable by
humans, and suitable for machine execution without the intervening steps of
interpretation or compilation.

"PORT" shall mean one telecommunications connection which permits input for a
single user into an Integrated System.

"PREMIUM TECHNICAL SUPPORT SERVICES" shall have the meaning assigned to it in
SECTION 13 ("TECHNICAL SUPPORT SERVICES AND IN SERVICE DATA").

"PROFESSIONAL SERVICES FEES" shall mean the Fees for performance of Professional
Services payable by VAR to Nuance as described in an EXHIBIT D ("PROFESSIONAL
SERVICES").

"PURCHASE ORDER" shall have the meaning assigned to it in SECTION 2 ("PURCHASE
ORDERS").

"RECEIVING PARTY" shall have the meaning assigned to it in SECTION 6.1
("DESIGNATION").

"RECOGNITION UNIT" shall mean the recognition power required to understand a
continuous stream of digits in real time with a 1% digit error rate, as
represented by a 100-utterance Nuance-supplied benchmark test set.

"RELEASE" shall mean a new, enhanced or revised iteration of Software, which may
include corrections for Errors, and which is generally designated by Nuance with
a change to one or more numbers to the right of the decimal point in the name of
such Release, such as Release "1.x".

                                       3
<PAGE>

"REPORT" shall have the meaning assigned to it in SECTION 10 ("REPORTS AND RIGHT
TO AUDIT").

"SALE", "SELL", "SELLING" or "SOLD" shall mean, with respect to the Integrated
System, any sublicense of the Software as part of the Integrated System pursuant
to the End User License Agreement, with or without consideration or other
payment to VAR.

"SIGNATURE PAGE" shall have the meaning assigned to it in the second paragraph
of this Agreement.

"SOFTWARE" shall mean the Nuance computer software programs described generally
in an EXHIBIT A, ("SOFTWARE") including Updates, if any, and accompanying
Documentation, and licensed by (a) the Test and Integration License described in
Section 3 of this Agreement; or, (b) execution of an EXHIBIT B ("FULL USE
LICENSE") or EXHIBIT C ("LIMITED USE LICENSE") and as specifically described in
an applicable Purchase Order.

"SOFTWARE LICENSE" shall mean an Limited Use License, a Full Use License, a Test
and Integration License, any or all of the foregoing.

"SOFTWARE LICENSE FEES" shall mean those Fees for an Limited Use License and/or
a Full Use License, payable by VAR to Nuance as described in an EXHIBIT B ("FULL
USE LICENSE") or an EXHIBIT C ("LIMITED USE LICENSE").

"SOURCE CODE" shall mean computer software programs not in machine readable
format and not suitable for machine execution without the intervening steps of
interpretation or compilation.

"SPEECH CHANNEL" shall mean the computer software described as such in an
EXHIBIT B ("FULL USE LICENSE") OR AN EXHIBIT C ("LIMITED USE LICENSE").

"SPECIFICATIONS" shall mean the technical and performance specifications for the
Software which are contained in and distributed with the Documentation.

"SUBSIDIARY" shall mean any entity which is controlled by a party. A party shall
be considered as in control of an entity if that party owns, or directly or
indirectly controls, at least fifty percent (50%) of the voting stock or other
ownership interest of such entity, or if it directly or indirectly possesses the
power to direct or cause the direction of the management and policies of such
entity by any means.

"TECHNICAL SUPPORT SERVICES" shall mean Basic Technical Support Services,
Premium Technical Support Services, either or both.

"TECHNICAL SUPPORT SERVICES FEE" shall mean the annual Fee for Technical Support
Services payable by VAR to Nuance described as such in an EXHIBIT F ("TECHNICAL
SUPPORT SERVICES"), and as may be increased or decreased by Nuance, upon notice
and at Nuance's discretion, subject to Section 9.1.7, upon each anniversary of
the date of this Agreement.

"TERM" shall have the meaning assigned to it IN SECTION 11 ("TERM AND
TERMINATION").

"TERMS AND CONDITIONS" shall have the meaning assigned to it in the second
paragraph of this Agreement.

"TEST AND INTEGRATION LICENSE" shall have the meaning described by Section 3.3.

"TOOLKIT" shall mean the Software known as "Nuance Developer's Toolkit."

"TRADEMARKS" shall mean the trademarks, trade names, and service marks of Nuance
which are described in EXHIBIT G ("NUANCE TRADEMARKS"), and as may be modified
or supplemented upon notice from Nuance.

"UPDATE" shall mean any modification of or addition to the Software or
Documentation, including new Releases but not new Versions, for which Nuance
does not charge an additional fee to licensees who are similarly situated to
VAR.

                                       4
<PAGE>

"VERSION" shall mean a new, enhanced or revised iteration of Software, which may
include corrections for Errors, and which is generally designated by Nuance with
a change to one or more numbers to the left of the decimal point in the name of
such Version, such as Version "X.1".

"WARRANTY PERIOD" shall have the meaning assigned to it in SECTION 12 ("WARRANTY
AND DISCLAIMER").

2.   PURCHASE ORDERS.

     2.1  ISSUANCE OF PURCHASE ORDERS. VAR may, from time to time during the
Term, issue to Nuance purchase orders which describe the Software Licenses,
Professional Services, Technical Support Services or other goods or services
which VAR wishes to obtain from Nuance ("Purchase Orders"). Purchase Orders
shall be in a form substantially similar to the Purchase Order attached hereto
as EXHIBIT H ("PURCHASE ORDER"). Nuance agrees that VAR may, for purposes of
administrative convenience, use VAR's standard form of purchase order which may
contain pre-printed or other written terms and conditions. The parties
understand and agree that such terms and conditions shall have no effect
whatsoever. VAR agrees that other than as provided in SECTION 2.2 any Purchase
Order form must include the following minimum information: the specific Nuance
Software to be licensed, the number of licenses to be issued (number of copies
of software), the name and address of the Authorized Sublicensee to whom the
Software License will issue, the customer application for which the Software
will be used (if applicable), the number of Ports to be installed (if
applicable), the machine identifier for which the Software is licensed and the
appropriate machine name (i.e., "OSCAR1").

     2.2  LIMITATION ON CUSTOMER OR APPLICATION DISCLOSURE. VAR agrees to
disclose the information provided in SECTION 2.1 for any Purchase Order for a
minimum of 90% of VARs Authorized Sublicensees (such percentage being measured
over a 12-month period). VAR may elect to not disclosure the requested
information in the case of the remaining Authorized Sublicensees of VARs for any
reason whatsoever. Nuance and VAR agree to review the required level of Purchase
Order customer/application disclosure at the end of the first twelve (12) months
of this agreement.

     2.3  ACCEPTANCE OR REJECTION OF PURCHASE ORDERS. Nuance shall have five (5)
days from the date of receipt of each Purchase Order to accept or reject such
Purchase Order and notify VAR of the acceptance or rejection of such Purchase
Order. Any failure of Nuance to accept or reject a Purchase Order within the
foregoing five (5) day period shall be deemed acceptance thereof. In the event
Nuance accepts a Purchase Order, Nuance shall create and deliver to VAR the
appropriate Key(s) within five (5) business days unless otherwise agreed through
acceptance of the Purchase Order. The parties agree that neither party shall
have any obligation with respect to a rejected Purchase Order.

3.   GRANT OF LICENSES.

     3.1  Full Use License. In the event that VAR has entered into an EXHIBIT B
("FULL USE LICENSE") and applicable Purchase Order, Nuance hereby grants to VAR
a license ("Full Use License") as follows, and subject to the provisions of such
Exhibit, Purchase Order and this Agreement:

          3.1.1  GRANT OF LICENSE. In consideration of all obligations of VAR
hereunder, including without limitation the payment by VAR of Software License
Fees, Nuance hereby grants to VAR a non-exclusive, non-transferable license
(including the right to grant sublicenses to Authorized Sublicensees solely as
described in this SECTION ("FULL USE LICENSE")) to make copies of the Software
solely to integrate such copies into the Integrated System. The foregoing
license includes the right, subject all provisions of this Agreement including
VAR's obligation to pay Software License Fees, to grant sublicenses to such
Software: (W) solely as incorporated into

                                       5
<PAGE>

the Integrated System; (Y) solely to End Users, Subsidiaries and distributors or
value added resellers of Integrated Systems (collectively "Authorized
Sublicensees"), and (Z): (I) if to End Users, solely pursuant to the End User
License Agreement, and (II) if to other Authorized Sublicensees, solely pursuant
to an agreement between VAR and the Authorized Sublicensee with license terms
substantially similar to those in this Agreement. VAR agrees to make such
Software accessible solely as part of the Integrated System, and in no event on
a "stand-alone" or independent basis

          3.1.2  COPIES. VAR may make a reasonable number of copies of the
Software for VAR's internal back-up and archival purposes only, provided that
all such copies shall bear the original and unmodified copyright, patent and
other intellectual property markings as when originally delivered by Nuance.

     3.2  LIMITED USE LICENSE. In the event that VAR has entered into an EXHIBIT
C ("LIMITED USE LICENSE") and applicable Purchase Order, Nuance hereby grants to
VAR a license ("Limited Use License") as follows, and subject to the provisions
of such Exhibit, Purchase Order and this Agreement:

          3.2.1  GRANT OF LICENSE. In consideration of all obligations of VAR
hereunder, including without limitation the payment by VAR of Software License
Fees, Nuance hereby grants to VAR a non-exclusive, non-transferable limited
license (including the right to grant sublicenses to Authorized Sublicensees
solely as described in this SUBSECTION 3.2 ("LIMITED USE LICENSE")) to make
copies of the Software: (A) solely for the Authorized Ports; (B) solely for the
Authorized Grammar Size; and (C) solely to integrate such copies into the
Integrated System. The foregoing license includes the right, subject all
provisions of this Agreement including VAR's obligation to pay Software License
Fees, to grant sublicenses of such Software: (W) solely as incorporated into the
Integrated System; (X) solely to End Users, Subsidiaries and distributors or
value added resellers of Integrated Systems (collectively "Authorized
Sublicensees") within the Designated Market and for their use within the
Designated Territory; and (Z): (I) if to End Users, solely pursuant to the End
User License Agreement, and (II) if to other Authorized Sublicensees, solely
pursuant to an agreement between VAR and the Authorized Sublicensee with license
terms substantially similar to those in this Agreement. VAR agrees to make such
Software accessible solely as part of the Integrated System, and in no event on
a "stand-alone" or independent basis.

          3.2.2  COPIES. VAR may make a reasonable number of copies of the
Software for VAR's internal back-up and archival purposes only, provided that
all such copies shall bear the original and unmodified copyright, patent and
other intellectual property markings as when originally delivered by Nuance.

     3.3  TEST AND INTEGRATION LICENSE. VAR is hereby granted a no-charge,
royalty-free, non-exclusive, non-transferable license to use the Software for
the purpose of internal testing, analysis, and technical integration with
equipment manufactured by VAR, and/or sales demonstration of the Software,
including the right to make a minimum number of copies of Software for the sole
purpose of facilitating such internal activities by VAR ("Test and Integration
License").

     3.4  ADDITIONAL RESTRICTIONS.

          3.4.1  NO IMPLIED LICENSES. The Software, including all copies
thereof, are and shall remain at all times the exclusive property of Nuance. VAR
acquires no rights or licenses therein except those expressly granted herein.

          3.4.2  NO TRANSFER. Except as expressly provided in this SECTION 3
("GRANT OF LICENSES"), VAR may not market, distribute or

                                       6
<PAGE>

transfer copies of the Software to others or electronically transfer the
Software from one computer to another over a network; except that, VAR may
transfer copies of the Software to a similarly configured back-up system: for
the contingency of primary system failure (redundancy) and routine installation,
warranty and maintenance services. VAR may also transfer licensed copies of the
Software in conjunction with Integrated Systems that are configured in a network
environment.

          3.4.3  NO REVERSE ENGINEERING. VAR hereby acknowledges that the
Software contains valuable trade secret and confidential information of Nuance.
VAR agrees not to reverse compile, reverse engineer, reverse assemble, or
otherwise attempt, directly or indirectly, to obtain or create Source Code for
the Software.

     3.5  KEYS AND ACCESS. Nuance agrees to provide to VAR those Keys which are
reasonably necessary to permit VAR to gain access to Software contained on media
shipped to VAR and which Software has been properly licensed to VAR pursuant to
a Test and Integration License or an Exhibit and applicable Purchase Order. All
such Keys shall be considered the Confidential Information of Nuance for
purposes of SECTION 6 ("CONFIDENTIAL INFORMATION"). Notwithstanding anything to
the contrary in this Agreement, VAR hereby acknowledges that VAR shall have no
right or license to any Software shipped to VAR on media as provided above which
Software is not properly licensed pursuant to the Test and Integration License
or an Exhibit and applicable Purchase Order, that any such Software is included
therein solely as a matter of administrative convenience, and VAR further agrees
not to attempt to gain access to, or permit any third party to attempt to gain
access to, such Software.

Nuance agrees to work jointly and in good faith with VAR to define a process
that will enable VAR to "self-provision" needed software keys. Such process will
include tracking and audit procedures that are required by Nuance to protect its
intellectual property and to account for license fees payable. Nuance and VAR
agree to make best efforts to define and agree to such a process within 30 days
of the signing of this Agreement and to implement the process as quickly as
practicable thereafter.

     3.6  TRADEMARK LICENSE.

          3.6.1  GRANT OF LICENSE. Nuance hereby grants to VAR, with the right
to sublicense to Authorized Sublicensees other than End Users, a nonexclusive,
nontransferable limited license to use the Trademarks on copies of the
Integrated System and in advertising and printed materials therefor, provided
that the notices of trademark status as described in EXHIBIT G are displayed
adjacent to and with the first or most prominent use of the Trademarks in each
piece of advertising or printed materials in which such Trademarks appear and
includes the respective legends adjacent to or as a footnote to the Trademarks
as described in EXHIBIT G. EXHIBIT G may be amended from time to time to reflect
the current trademark status of existing marks and to add new trademarks. VAR
agrees to diligently comply with updated trademark requirements as reflected in
amendments to EXHIBIT G.

          3.6.2  ("USE OF TRADEMARKS; RESTRICTIONS"). VAR agrees not to use any
other trademark or service mark in close proximity to the Trademarks or combine
such marks so as to effectively create a unitary composite mark without the
prior, written permission of Nuance. VAR agrees to comply with all the foregoing
terms in its catalogs, advertising, packaging and promotional materials relating
to or including the Integrated System and ensure compliance with these terms by
its Authorized Sublicensees (other than End Users).

          3.6.3  OWNERSHIP AND QUALITY. VAR acknowledges the ownership of the
Trademarks in Nuance, agrees that it will do nothing inconsistent with such
ownership, agrees to use reasonable efforts to preserve

                                       7
<PAGE>

Nuance's rights in the Trademarks, and agrees that all uses of the Trademarks by
VAR and Authorized Sublicensees (other than End Users) shall inure to the sole
benefit of Nuance. VAR agrees to cooperate with Nuance and ensure cooperation by
Authorized Sublicensees (other than End Users) in facilitating Nuance's
monitoring and control of the nature and quality of such Integrated System, and
to supply Nuance with specimens of use of the Trademarks upon request. VAR shall
comply, and ensure compliance by Authorized Sublicensees (other than End Users),
with all applicable laws, rules, regulations, and customs with respect to the
Trademarks, and shall notify Nuance immediately and in writing of any
unauthorized use of the Trademarks by any third party. Nuance shall have the
sole right to bring any legal proceeding with respect to any such unauthorized
use.

4.   PROFESSIONAL SERVICES. In the event that VAR has entered into an EXHIBIT D
("PROFESSIONAL SERVICES") as indicated on the Signature Page, Nuance agrees to
use its commercially reasonable efforts to develop and deliver to VAR the
Professional Services described therein according to the milestone schedule also
described therein. The content of Exhibit D shall, in all events, include the
following mutually agreed terms: specifications of any deliverable item or work
product, delivery schedule, acceptance criteria, documentation specifications
and warranty period.

     4.1  OWNERSHIP. In the event that an Application is developed by Nuance
under the terms of an EXHIBIT D ("PROFESSIONAL SERVICES"), ownership and license
rights will be as defined in the subject exhibit, except that, if such
Application is designated a "work for hire", VAR shall have ownership of such
Application.

5.   DELIVERY AND ACCEPTANCE.

     5.1  Nuance shall deliver all of the Software ordered by VAR on or before
the date shown on the applicable Order Form. Delivery shall be FOB VAR's
offices, freight prepaid by Nuance, unless otherwise indicated in the Order
Form. Partial deliveries are not authorized.

     5.2  Unless modified by an Exhibit J, Software licensed pursuant to a Full
Use License or Limited Use License and executed Purchase Order shall have a test
period of ten (10) days duration, provided, however, that should an acceptance
test failure occur during such ten (10) day period, all subsequent re-testing
shall occur pursuant to an additional ten (10) day period.

     5.3  In no event shall any Update delivered by Nuance cause any Software or
Documentation previously accepted by VAR to perform less favorably in any
material respect than as described in the Specifications in effect at the time
of such acceptance.

     5.4  Nuance shall use commercially reasonable efforts to (a) minimize the
frequency of new Releases, Updates and Versions by optimal engineering
development, process, controls, and quality assurance procedures; (b) anticipate
and accommodate, to the greatest degree possible, a typical lead-time for
internal testing and evaluation by VAR of 60 days for new Releases, Updates or
Versions.

     5.5  VAR shall have the right to order Software, Releases or Versions which
were previously ordered by VAR during the preceding 15 month period or the prior
three releases, whichever is later. Such Software, Releases or Versions, and
their respective Documentation and Updates, shall be identical in form, function
and all other respects, and be fully and effectively supported by Nuance during
the Warranty Period set forth in Section 12.1 and any period of Technical
Support Services described in Exhibit F.

     5.6  CUSTOMER SPECIFIC ACCEPTANCE REQUIREMENTS. Any customer specific
acceptance requirements that have been negotiated and agreed upon by the parties
in good faith shall be made solely pursuant to an

                                       8
<PAGE>

Exhibit J ("Customer Specific Acceptance Requirements").

6.   CONFIDENTIAL INFORMATION.

     6.1  DESIGNATION. Each party (the "Disclosing Party") may from time to time
during the Term of this Agreement disclose to the other party (the "Receiving
Party") certain non-public information regarding the Disclosing Party's
business, including technical, marketing, financial, personnel, planning, and
other information ("Confidential Information"). The Disclosing Party shall mark
all such Confidential Information in tangible form with the legend
`confidential', `proprietary', or with similar legend. With respect to
Confidential Information disclosed orally, the Disclosing Party shall describe
such Confidential Information as such at the time of disclosure, and shall
confirm such Confidential Information as such in writing within thirty (30) days
after the date of oral disclosure. Regardless of whether so marked, however the
Software itself (in Source Code and Object Code formats), shall be deemed to be
the Confidential Information of Nuance.

     6.2  PROTECTION OF CONFIDENTIAL INFORMATION. Except as expressly permitted
by this Agreement, the Receiving Party shall not disclose the Confidential
Information of the Disclosing Party and shall use at least the same degree of
care which the Receiving Party ordinarily uses with respect to its own
proprietary information, but in no event with less than reasonable care. The
Receiving Party shall not use the Confidential Information of the Disclosing
Party for any purpose not expressly permitted by this Agreement, and shall limit
the disclosure of the Confidential Information of the Disclosing Party to the
employees or agents of the Receiving Party who have a need to know such
Confidential Information for purposes of this Agreement, and who are, with
respect to the Confidential Information of the Disclosing Party, bound in
writing by confidentiality terms no less restrictive than those contained
herein. The Receiving Party shall provide copies of such written agreements to
the Disclosing Party upon request; provided, however, that such agreement copies
shall themselves be deemed Confidential Information. 6.3 EXCEPTIONS.
Notwithstanding anything herein to the contrary, Confidential Information shall
not be deemed to include any information which: (A) was already lawfully known
to the Receiving Party at the time of disclosure by the Disclosing Party as
reflected in the written records of the Receiving Party; (B) was or has been
disclosed by the Disclosing Party to a third party without obligation of
confidence; (C) was or becomes lawfully known to the general public without
breach of this Agreement; (D) is independently developed by the Receiving Party
without access to, or use of, the Confidential Information; (E) is approved in
writing by the Disclosing Party for disclosure by the Receiving Party; (F) is
required to be disclosed in order for the Receiving Party to enforce its rights
under this Agreement; or (G) is required to be disclosed by law or by the order
or a court or similar judicial or administrative body; provided, however, that
the Receiving Party shall notify the Disclosing Party of such requirement
immediately and in writing, and shall cooperate reasonably with the Disclosing
Party, at the Disclosing Party's expense, in the obtaining of a protective or
similar order with respect thereto.

     6.4  RETURN OF CONFIDENTIAL INFORMATION. The Receiving Party shall return
to the Disclosing Party, destroy or erase all Confidential Information of the
Disclosing Party in tangible form: (A) upon the written request of the
Disclosing Party (except for Software contained in such Confidential
Information); or (B) upon the expiration or termination of this Agreement,
whichever comes first, and in both cases, the Receiving Party shall certify
promptly and in writing that it has done so. Except for the rights expressly
described herein, VAR is not granted any rights to any Nuance patents,
copyrights, trade secrets, trade names, trademarks (whether or not registered),
or any other rights, franchises or licenses.

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<PAGE>

7.   PROPRIETARY NOTICES.

     7.1  REQUIRED NOTICES. VAR agrees that as a condition of its rights
hereunder, each copy of the Software shall contain the same proprietary notices
which appear on or in Software as provided by Nuance to VAR and as otherwise
reasonably required by Nuance.

     7.2  UNAUTHORIZED DISTRIBUTION OR COPYING. VAR agrees that: (A)
distributing, copying, duplicating or otherwise reproducing all or any part of
the Software (except as expressly permitted by this Agreement); or (B)
distributing copies of all or any portion of the Software other than in
conjunction with the Integrated System and in strict accordance with this
Agreement, will be considered a material breach of this Agreement. Regardless of
any cure period under any other section of this Agreement, Nuance shall have the
immediate right to seek injunctive relief for breach under this Section. In any
event, and regardless of any other cure period under this agreement, the cure
period for breach under this SECTION 7.2 shall be a maximum of ten (10) days.

8.   MARKETING.

     8.1  MARKETING OF INTEGRATED SYSTEM. VAR agrees to use its commercial best
efforts to Sell the Integrated System to End Users pursuant to the End User
License. VAR agrees to actively and diligently develop, promote, market, solicit
orders for, maintain and support Integrated Systems in a manner which reflects
favorably on the Nuance Products and the good will and reputation of the
parties.

     8.2  COMPETITIVE PRODUCTS. Subject to all terms of this Agreement,
including without limitation the provisions of SECTION 6 ("CONFIDENTIAL
INFORMATION"), and the intellectual property rights of each party, nothing in
this Agreement shall prevent either party from developing or having developed
any goods or services, regardless of their similarity to the goods and services
of the other party, or shall prevent either party from entering into any
agreement with any third party.

     8.3  COOPERATIVE SALES EFFORTS. Nuance and VAR agree to cooperative sales
activities as follows:

          8.3.1  Nuance and VAR mutually agree that when joint commitments are
made in writing to pursue a specific business opportunity, neither will make a
joint proposal for that business opportunity with any third party except by
prior mutual written agreement between VAR and Nuance.

          8.3.2  Nuance may choose to call directly on any prospect as may VAR.
Nuance will determine whether any resulting opportunities represent a joint
opportunity with VAR and if so will seek to involve VAR. However, if Nuance has
reseller relationships with more than one bidder in a competitive procurement,
Nuance will provide equivalent reseller support to all resellers regardless of
which is the installed supplier.

          8.3.3  Nuance agrees that it will not undermine VAR's sales efforts by
offering End Users greater discounts for direct sales by Nuance. If a non-
standard discount is required to close a major VAR initiated sales opportunity,
Nuance and VAR agree to jointly review the sales situation to determine if
additional discount is appropriate.

          8.3.4  If Nuance's direct sales activity identifies a prospect's
preference for a supplier of voice processing solutions other than VAR based
upon installed base, prior relationships, etc., Nuance will be free to work with
the prospect's preferred supplier.

     8.4  COOPERATIVE MARKETING EFFORTS. Nuance and VAR agree to cooperative
marketing activity as follows:

          8.4.1  Nuance and VAR agree to meet quarterly (in person or by
conference call) to review market, sales and product requirements and to agree
to needed actions to achieve the objectives of this Agreement.

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      WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
      RESPECT TO THE OMITTED PORTIONS.

          8.4.2  VAR agrees to provide Nuance a quarterly forecast of
anticipated sales and expected revenue. Nuance agrees to provide appropriate
support to VAR's sales efforts (i.e. provide marketing/sales documentation,
accompany VAR on specific customer calls as agreed appropriate, etc.).

          8.4.3  Nuance and VAR agree to monthly telephone conference calls
between designated sales management to review the status of sales vs. forecast
and to determine if Nuance support can help VAR and Nuance achieve additional
revenue.

          8.4.4  When VAR is the prime contractor to an End User for a specific
project, Nuance will respond to End User requests for information, data or
documentation that are specific to such project solely through VAR, unless
otherwise agreed in writing. VAR agrees to make reasonable efforts to include
Nuance's project manager in project status reviews and meetings which directly
relate to Nuance Software or Professional Services to assure Nuance's
understanding of End User requirements to permit Nuance to develop an
appropriate response in cooperation with VAR for communication to End User by or
through VAR.

          8.4.5  VAR shall not describe the Software in a way that implies or
states that it is owned or has been developed by VAR. When referring
specifically to the Software or its underlying technology, VAR will use the
Nuance name or trademarks. VAR may describe a marketing concept such as Large
Vocabulary Recognition (LVR) that includes the Software and software from other
companies without specific reference to Nuance's name or trademarks.

9.   INVOICES AND PAYMENTS.

     9.1  INVOICES. Nuance shall issue payment invoices from time to time for
Fees and any other amounts due hereunder. VAR shall make payment to Nuance of
all such payment invoices in the lawful money of the United States of America.

          9.1.1  PAYMENT FOR SOFTWARE. Payment for Software will be due within
30 days after the end of the calendar month in which the Software was accepted
under Section 5.2, except as provided under PRE-PAYMENTS AND SPECIAL DISCOUNTS
(SECTION 9.1.4). Should payments due be less than [***] for any month, such
amount due will be payable either 30 days after the month in which Periphonics'
total payments outstanding exceed [***], or the end of the Periphonics' fiscal
quarter in which such amount first became due, whichever condition occurs first.

          9.1.2  PAYMENT FOR TECHNICAL SUPPORT SERVICES. Subject to the terms
specified in EXHIBIT F, SCHEDULE 1 ("TECHNICAL SUPPORT SERVICES FEE SCHEDULE"),
payment for Technical Support Services shall be made quarterly in advance and
due on the tenth business day of each of the VAR's fiscal quarters. For new
customers that enter into Technical Support Service agreements within the VAR's
fiscal quarter, pro-rata payments for the that current quarter and advance
payment for the succeeding quarter shall both be due at the beginning of the
VAR's succeeding fiscal quarter.

          9.1.3  PAYMENT FOR PROFESSIONAL SERVICES OR MISCELLANEOUS FEES AND
SERVICES. Payment for Professional Services shall be made as agreed within an
EXHIBIT D ("PROFESSIONAL SERVICES"). Payment for miscellaneous fees or services
will be due thirty (30) days following the issuance of an invoice from Nuance to
VAR in conformance with the terms of an Exhibit D.

          9.1.4  PRE-PAYMENTS AND SPECIAL DISCOUNTS Nuance and VAR agree to a
special discount from Nuance's standard list price based upon VAR's commitment
to make quarterly pre-payments for licenses of Software.

     In each of the initial two calendar quarters of this Agreement (January
through March, 1998, and April through June, 1998),

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      WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
      RESPECT TO THE OMITTED PORTIONS.

VAR will pay Nuance $[***] for licenses to Software at a discount of [***]% off
Nuance's standard list price. Payments are due on March 10, 1998, and June 10,
1998. These payments are non-refundable. Software paid for by VAR will be
immediately delivered by Nuance and will be eligible for sublicense by VAR for
as long a period as may be required for their sale and shipment to customers.

     After the initial two calendar quarters VAR may elect to continue such
quarterly pre-payments of $[***], or stop such pre-payments. If VAR stops such
prepayments no further Software will be shipped to VAR until VAR elects one of
two alternatives in writing:

     a)   Restart quarterly pre-payments which reinstates the special [***]%
discount off Nuance's standard list price, or

     b)   Order Software on an as needed basis subject to Nuance standard list
price and discount terms specified in the following SECTION 9.1.5. STANDARD
DISCOUNT TERMS.

          9.1.5  STANDARD DISCOUNT TERMS VAR will be eligible for the following
discounts off Nuance's standard End User List Price, as described in EXHIBIT A
("SOFTWARE"), for Software and EXHIBIT F ("TECHNICAL SUPPORT SERVICES") for
Technical Support Services, excepting the Stocks & Mutual Funds Grammar Update
Services and Professional Services. The increased levels of discount indicated
are attained based on the non-discounted End User List Price described in
Exhibit A for sales of Software in each twelve month period. The discount is
calculated quarterly. Such List Price sales attained in the immediately
preceding twelve month period will be used to determine the discount applicable
in the then current quarter.

List Price Revenue                  Earned Discount
------------------                  ---------------
Less than $[***]                     [***]%
$500.000 to $[***]                   [***]%
$1.000.000 to $[***]                 [***]%
Greater than $[***]                  [***]%

          9.1.6  OTHER DISCOUNTS VAR will receive a 30% discount for customer
training courses provided by Nuance, and for customer contracts for the Stocks
and Mutual Funds Grammar Update Service. Nuance will conduct training courses
for VAR's customers subject to instructor availability. Such courses must
include 12 or more paid enrollments, and if offered at other than Nuance's
training facility. VAR agrees to pay reasonable travel and living expenses for
the instructor(s).

          9.1.7  [***] Notwithstanding any provision in this Agreement to
the contrary, in no event shall the Fee billable to VAR under this Agreement be
increased by more than [***] during any 12 month period for previously released
Software. Releases or Versions, including End User List Prices for previously
released Software. Releases or Versions, and related Services Fees. This
provision shall not apply to new Software. Releases or Versions, for which
Nuance shall have sole discretion on pricing.

     9.2  EFFECT OF LATE PAYMENT. All late payments of payment invoices by VAR,
not subject to good faith dispute, shall bear interest at a rate of one and one-
half percent (1.5%) per month or partial month during which any sums under such
payment invoices were owed and unpaid, or the highest rate allowed by law,
whichever is lower.

     9.3  EFFECT OF NON-PAYMENT. Any failure of VAR to make payment of any
payment invoice in the manner described in this SECTION 9 ("INVOICES AND
PAYMENTS") may, at Nuance's discretion, be considered a material breach of this
Agreement by VAR for purposes

                                       12
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      WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
      RESPECT TO THE OMITTED PORTIONS.

of initiating the procedures set forth in paragraph 11.2 of SECTION 11 ("TERM
AND TERMINATION").

10.  REPORTS AND RIGHT TO AUDIT.

     10.1 REPORTS. Upon Nuance's enabling VAR to self-provision software keys as
described in SECTION 3.5, VAR shall prepare and deliver to Nuance within ten
(10) business days of the last day of each calendar month during the Term a
written report ("Report") which shall include the following information for each
Software License issued to an Authorized Sublicensee: the name of the Authorized
Sublicensee to whom the Software License was issued, the customer application
for which the Software will be used, the number of Ports to be installed, the
machine identifier for which the Software is licensed and appropriate machine
identification information to enable Nuance to track Software Licenses and End
User eligibility for Technical Support Services. Nuance may provide, from time
to time, a form of Report which VAR agrees to follow with respect to carrying
out the foregoing obligations.

VAR shall also report the name and location of any Integrated System licensed
pursuant to a Test and Integration License.

     10.2 RIGHT TO AUDIT. VAR shall maintain written records describing the use
and location of all copies of the Software, including without limitation any
such copies in the possession or control of VAR.

     VAR shall also maintain a complete, clear, and accurate record of: (A) the
location of each copy of the Software while in VAR's possession; (B) the number,
type, Authorized Sublicensee identity and location for Software Sold or
sublicense in an Integrated System or used internally by VAR during each
calendar month; and (C) any other information which may be reasonably required
by Nuance to determine whether VAR is complying with the terms of this
Agreement. To ensure compliance with the terms of this Agreement, Nuance shall
have the right, at its own expense and exercisable by outside auditors mutually
agreed upon by the parties, to audit and to obtain copies of all such written
records provided such audit does not interfere unreasonably with VAR's day to
day business operations and that such auditors sign VAR's non-disclosure
agreement. Such non-disclosure agreement shall be commercially reasonable and
will not prohibit the auditors from disclosing their findings to Nuance. Nuance
may exercise such right to audit upon reasonable advance notice to VAR, and no
more frequently than one (1) time each calendar year. If any such audit should
disclose any underpayment of Fees, VAR shall promptly pay Nuance such underpaid
amount, together with interest thereon at a rate of one and one-half percent
(1.5%) per month or partial month during which each such amount was owed and
unpaid, or the highest rate allowed by law, whichever is lower. If the amount of
such underpayment exceeds [***] percent ([***]%) of amounts otherwise payable,
then VAR shall immediately reimburse Nuance for Nuance's reasonable and
customary audit expenses up to a maximum of $[***].

11.  TERM AND TERMINATION.

     11.1 TERM. This Agreement shall remain in effect for an initial period of
three (3) years. At the expiration of the initial 3-year period, this Agreement
shall automatically renew for subsequent one year periods unless either party
provides written notice of an intention not to renew for a given period. Any
given period is subject to earlier termination by either party as hereinafter
provided. Any End User License already entered into by VAR as of the date of the
expiration or termination of this Agreement shall remain in effect provided that
all associated End Users have at all times remained in strict compliance with
the terms of the End User License. Nuance shall continue to provide Level 3
Technical Support Services to VAR for applicable End User Support so long as VAR
continues payment to Nuance of all applicable Technical Support Fees, but in no
event shall VAR enter into any new Technical Support Services agreements with
End Users

                                       13
<PAGE>

subsequent to the expiration or termination of this Agreement.

     11.2 TERMINATION FOR MATERIAL BREACH. Either party may terminate this
Agreement immediately upon written notice for the material breach of the other
party, which material breach has remained uncured for period of thirty (30) days
from the date of delivery of written notice thereof to the breaching party. The
parties expressly understand and agree that any uncured failure of VAR to
undertake the efforts described by SECTION 8.1 may be deemed a material breach
of this Agreement.

     11.3 EFFECT. In the event of any termination of this Agreement as provided
in SECTION 11.2 ("TERMINATION FOR MATERIAL BREACH"), and except as further
described below, all licenses granted by Nuance hereunder shall immediately
terminate, and VAR shall immediately return to Nuance all material belonging to
Nuance or its licensors, including without limitation all copies of the Software
and Nuance Confidential Information, and shall promptly certify to Nuance in
writing that VAR has done so. Any End User License already entered into by VAR
as of the date of the foregoing material breach by VAR shall remain in effect
provided that all associated End Users have at all times remained in strict
compliance with the terms of the End User License. Nuance shall continue to
provide Level 3 Technical Support Services to VAR for applicable End User
support so long as VAR continues payment to Nuance of all applicable Technical
Support Services Fees, but in no event shall VAR enter into any new Technical
Support Services agreements with End Users subsequent to such breach. Solely in
the event of a termination of this Agreement for Nuance's material breach, and
in addition to any other available remedies, VAR shall, for a period not to
exceed ninety (90) days have the right to Sell, pursuant to the terms of this
Agreement, any remaining Integrated Systems which were in VAR's inventory on the
date of the foregoing material breach.

12.  WARRANTY AND DISCLAIMER.

     12.1 SOFTWARE WARRANTY. Nuance warrants that for a period of ninety (90)
days from acceptance of Software pursuant to SECTION 5 ("DELIVERY AND
ACCEPTANCE") (hereinafter the "Warranty Period"), the Software shall meet all of
Nuance's material Specifications for the Software at the time of acceptance for
use on an Integrated System. Each instance in which the Software fails to meet
such material Specifications shall be considered an "Error." If VAR reports to
Nuance any Errors in such Software during the applicable Warranty Period, and
provides such detail as Nuance may reasonably require to permit Nuance to
reproduce such Errors, then Nuance, at its expense, shall modify or replace the
Software, or provide Updates to correct such Errors.

     12.2 RIGHT TO LICENSE. Nuance warrants that it has the right to grant the
licenses hereunder and that the grant of any such license will not infringe any
known third party proprietary right.

     12.3 DISCLAIMER. THE WARRANTY SET FORTH SUBSECTION 12.1 ("SOFTWARE
WARRANTY") STATES NUANCE'S SOLE AND EXCLUSIVE WARRANTY TO VAR AND ANY THIRD
PARTY CONCERNING THE "SOFTWARE" AND THE EXCLUSIVE REMEDY FOR BREACH OF WARRANTY.
EXCEPT AS EXPRESSLY SET FORTH IN SUBSECTION 12.1 ("SOFTWARE WARRANTY"), THE
"SOFTWARE" IS PROVIDED STRICTLY "AS IS," AND NUANCE MAKES NO ADDITIONAL
WARRANTIES, EXPRESS, IMPLIED, ARISING FROM COURSE OF DEALING OR USAGE OF TRADE,
OR STATUTORY, AS TO THE "SOFTWARE" OR ANY MATTER WHATSOEVER. IN PARTICULAR, ANY
AND ALL WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NON-
INFRINGEMENT (EXCEPT IN ACCORDANCE WITH SECTION 12.2 ARE

                                       14
<PAGE>

EXPRESSLY EXCLUDED. THIS IS A LIMITED WARRANTY AND IS THE ONLY WARRANTY MADE BY
NUANCE. VAR SHALL NOT HAVE THE RIGHT TO MAKE OR PASS ON, AND SHALL TAKE ALL
MEASURES NECESSARY TO ENSURE THAT NEITHER VAR NOR ANY OF ITS AGENTS OR EMPLOYEES
SHALL MAKE OR PASS ON, ANY EXPRESS OR IMPLIED WARRANTY OR REPRESENTATION ON
BEHALF OF NUANCE OR ITS LICENSORS TO ANY END USER OR THIRD PARTY.

13.  TECHNICAL SUPPORT SERVICES AND IN SERVICE DATA.

     13.1   PROVISION OF TECHNICAL SUPPORT SERVICES. In the event that VAR has
elected to receive Technical Support Services as indicated on an EXHIBIT F
("TECHNICAL SUPPORT SERVICES"), and has paid all associated Technical Support
Services Fees as invoiced by Nuance, VAR shall be entitled to receive Technical
Support Services as hereinafter described. For purposes of this Agreement,
"Technical Support Services" shall consist of:

            13.1.1    The right of VAR's Designated Employees to contact Nuance
by telephone or e-mail and to consult with Nuance regarding the installation,
functions and operation of the Software or Application;

            13.1.2    The right of VAR's Designated Employees to contact Nuance
by telephone or e-mail to consult with Nuance regarding Errors in the Software
or Application which Errors have been brought to Nuance's attention by VAR's
Designated Employees;

            13.1.3    The right to obtain from Nuance certain Updates for the
Software or Application which Updates are reasonably necessary to correct
reproducible Errors which Errors have been brought to Nuance's attention by
VAR's Designated Employees; or which provide improved or additional functions
which are supplied to other VARs or End Users under a Technical Support Services
agreement.

            13.1.4    The right to have Nuance use its commercially reasonable
effort to promptly, thoroughly and competently correct Errors other than those
described above which have been brought to Nuance's attention by VAR's
Designated Employees.

     13.2   HOURS AND FACILITIES.

            13.2.1    BASIC TECHNICAL SUPPORT SERVICES. If VAR, on behalf of an
End User, has elected to receive Basic Technical Support Services as indicated
on an EXHIBIT F ("TECHNICAL SUPPORT SERVICES"), then VAR shall be entitled to
receive Technical Support Services on behalf of the subject End User as
described in SECTION 13.1 ("PROVISION OF TECHNICAL SUPPORT SERVICES") only
between the hours of 8:30 a.m. and 6:00 p.m., Eastern Time.

            13.2.2    PREMIUM TECHNICAL SUPPORT SERVICES. If VAR, on behalf of
an End User, has elected to receive Premium Technical Support Services as
indicated by VAR's signature on an EXHIBIT F ("TECHNICAL SUPPORT SERVICES"),
then VAR shall be entitled to receive Technical Support Services on behalf of
the subject End User as described in SECTION 13.1 ("PROVISION OF TECHNICAL
SUPPORT SERVICES") twenty-four (24) hours per day, seven (7) days a week.

     13.3   LIMITATIONS. VAR, on behalf of End User, must elect to receive
Technical Support Services on either all or none of the Software, and may not
elect to receive Technical Support Services on some Software and not on other
Software. Nuance shall have no obligation to provide Technical Support Services
for any Application (except as so provided under an EXHIBIT D "(PROFESSIONAL
SERVICES")) any non-Nuance computer programs, technology or hardware, or any
Software which is not within three Releases of the most recent Version or
Release, or which was first delivered to VAR more than three years earlier
(whichever is later) or for which Nuance has provided Updates which have not
been applied to the Software for a period of

                                       15
<PAGE>

more than one (1) year from the date of delivery thereof to VAR. Should VAR or
VAR's End User cancel Technical Support Services and subsequently desire to
reinstate such Technical Support Services, VAR shall pay Nuance an amount equal
to the unpaid Technical Support Services Fees that would have been due during
the period in which Technical Support Services were canceled. Any failure of VAR
to pay all Technical Support Service Fees as invoiced by Nuance, and not subject
to good faith dispute, shall, at Nuance's sole option, immediately eliminate any
obligation of Nuance to provide Technical Support Services hereunder.

     13.4   ADDITIONAL SERVICES. In the event that VAR desires to obtain from
Nuance additional services with respect to the Software, or any services at all
with respect to any Professional Services, Nuance agrees to negotiate in good
faith for the provision of such services at rates no higher than Nuance's normal
commercial rates, and subject to terms as may be agreed to by the parties and to
be contained in an Exhibit to this Agreement.

     13.5   IN SERVICE DATA. Subject to agreement by VAR's End User, which (if
granted) may require Nuance's execution of a non-disclosure agreement acceptable
to VAR's End User, Nuance will be provided reasonable access to In-Service Data
generated through the use of each Integrated System in which Software is
installed. VAR shall use commercial best efforts to negotiate the right to
obtain such In-Service Data, and/or clearly inform the End User in writing that
denial of access to In-Service Data may result in the inability of Nuance to
make essential improvements to the Software's functionality or recognition
accuracy. In cases where the Specifications establish performance criteria which
are predicated upon access to In-Service Data, VAR shall ensure that its own
contract specifications with an End User clearly cite the requirement for In-
Service Data as a condition of achieving such performance by the Software.
Nuance may use this In-Service Data to train, refine, supplement or test its
speech recognition and natural language understanding software, models and
algorithms. The primary use of In-Service Data is to improve the performance of
the Software for the End User. Additionally, resulting improvements to the
Software may be used for the benefit of all users of the Software. Nuance may
not use the content of any such data for any purpose other than that described
in this section.

14.  VAR SUPPORT OF END USERS. VAR hereby acknowledges and agrees that Nuance
shall have no responsibility for providing service or assistance to End Users
except as provided under EXHIBIT D ("PROFESSIONAL SERVICES"). VAR agrees that
VAR shall not direct any End Users to contact Nuance directly for Technical
Support Services.

15.  INDEMNITIES AND LIMITATION OF LIABILITY.

     15.1   INTELLECTUAL PROPERTY INDEMNITY. Nuance agrees to indemnify, defend
and hold harmless VAR from any loss, costs, damages, and reasonable attorneys'
fees resulting from or in connection with any claims or actions by third parties
that the sublicensing or uses permitted hereunder of the Software as delivered
by Nuance infringe any patent, copyright trademark, trade secret or other
proprietary right of any third party, provided that VAR gives Nuance prompt
written notice of each such claim, tenders to Nuance the defense or settlement
of each such claim at Nuance's expense, and cooperates with Nuance, at Nuance's
expense, in defending or settling each such claim. If Nuance receives notice of
an alleged infringement, or if VAR's use of the Software shall be prevented by
permanent injunction, Nuance may, at its sole option and expense, procure for
VAR the right to continue using the Software as provided hereunder, modify the
Software so that it is no longer infringing, or replace the Software with
computer software of equal or superior functional capability or in the case of
trademark infringement, instruct VAR to use an alternative trademark. THE RIGHTS
GRANTED TO VAR

                                       16
<PAGE>

UNDER THIS SECTION 15.1 ("INTELLECTUAL PROPERTY INDEMNITY") SHALL BE VAR'S SOLE
AND EXCLUSIVE REMEDY AND NUANCE'S SOLE OBLIGATION FOR ANY ALLEGED INFRINGEMENT
OF ANY PATENT, COPYRIGHT, TRADEMARK, OR OTHER PROPRIETARY RIGHT. NUANCE SHALL
HAVE NO LIABILITY TO VAR OR ANY THIRD PARTY IF ANY ALLEGED INFRINGEMENT OR CLAIM
OF INFRINGEMENT IS BASED UPON: (A) ANY "APPLICATION" OR MODIFIED "SOFTWARE"; (B)
USE OF THE "SOFTWARE" IN CONNECTION OR IN COMBINATION WITH EQUIPMENT, DEVICES,
OR SOFTWARE NOT PROVIDED BY NUANCE (IF SUCH INFRINGEMENT OR CLAIM COULD HAVE
BEEN AVOIDED BY THE USE OF OTHER EQUIPMENT, DEVICES OR SOFTWARE), OTHER THAN FOR
USE ON AN "INTEGRATED SYSTEM"; OR (C) THE USE OF "SOFTWARE" OTHER THAN AS
PERMITTED UNDER THIS AGREEMENT OR NOT IN ACCORDANCE WITH THE SPECIFICATIONS OR
USE OF OTHER THAN THE MOST CURRENT RELEASE OR VERSION OF THE "SOFTWARE" (IF SUCH
CLAIM WOULD HAVE BEEN PREVENTED BY THE USE OF SUCH RELEASE OR VERSION).

     15.2   VAR INDEMNITY Without limiting Nuance's obligations under Section
15.1, VAR agrees to indemnify, defend and hold harmless Nuance from and against
any losses, costs, or damages (including reasonable attorneys' fees) resulting
from or in connection with any claims by third parties resulting from or in
connection with the use, manufacture, or distribution of Integrated Systems by
VAR and VAR's direct and indirect customers in any country, worldwide, provided
that Nuance gives VAR prompt written notice of any such claim, tenders to VAR
the defense or settlement of any such claim at VAR's expense, and cooperates
with VAR, at VAR's expense, in defending or settling such claim.

     15.3   LIMITATION OF LIABILITY NEITHER PARTY WILL BE LIABLE TO THE OTHER
PARTY OR ANY THIRD PARTY FOR ANY LOSS OF USE, INTERRUPTION OF BUSINESS OR ANY
INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE OR CONSEQUENTIAL DAMAGES OF ANY KIND
(INCLUDING LOST PROFITS) REGARDLESS OF THE FORM OF ACTION WHETHER IN CONTRACT,
TORT (INCLUDING NEGLIGENCE), STRICT PRODUCT LIABILITY OR OTHERWISE, EVEN IF THAT
PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. THE FOREGOING
LIMITATION OF LIABILITY IS INDEPENDENT OF ANY EXCLUSIVE REMEDIES FOR BREACH OF
WARRANTY SET FORTH IN THIS AGREEMENT.

16.  TAXES. In addition to any other payments due under this Agreement, VAR
agrees to pay, and to indemnify and hold Nuance harmless from, any sales, use,
excise, import or export, value added or similar tax or duty not based on
Nuance's net income, including any penalties and interest, as well as any costs
associated with the collection or withholding thereof, and all governmental
permit fees, license fees and customs and similar fees levied upon the delivery
by Nuance of the Software, which Nuance may incur in respect of this Agreement.

17.  GOVERNMENT END USERS. When Selling an Integrated System to a U.S.
Government End User, VAR shall identify the Software in an Integrated System as
a "commercial item," as that term is defined at 48 C.F.R. 2.101 (OCT 1995), and
more specifically shall identify such item as "commercial computer software" and
"commercial computer software documentation," as such terms are used in 48
C.F.R. 12.212 (SEPT 1995). Consistent with 48 C.F.R. 12.212 and 48 C.F.R.
227.7202-1 through 227.7202-4 (JUNE 1995), VAR will provide the Software in any
Integrated System (including related documentation) to U.S.

                                       17
<PAGE>

Government End Users: (A) only as a commercial end item; and (B) only pursuant
to the End User License Agreement.

18.  EXPORT CONTROL. The parties acknowledge that the manufacture and sale of
the Software or Application is subject to the export control laws of the United
States of America, including the U.S. Bureau of Export Administration
regulations, as amended, and hereby agree to obey any and all such laws. The
parties agree not to take any actions that would cause either party to violate
the U.S. Foreign Corrupt Practices Act of 1997, as amended.

19.  ESCROW AGREEMENT. Nuance and VAR agree to enter into an escrow agreement in
the form attached hereto as EXHIBIT H and with an escrow agent reasonably
acceptable to both parties. The escrow agreement shall provide for the deposit
and maintenance of the source code for Nuance Products by Nuance and the release
to VAR of the same in the event of a Release Condition. A "Release Condition"
shall mean any of the following occurrences: (a) the filing by Nuance of a
voluntary bankruptcy petition; (b) the filing of an involuntary bankruptcy
petition against Nuance, which involuntary petition is not dismissed within
ninety (90) days of its filing; (c) the dissolution of Nuance, where the rights
and obligations of Nuance under this Agreement have not been assumed by a third
party reasonably capable of carrying out such obligations; or (d) the failure of
Nuance to carry on business in the ordinary course. Nuance shall pay all start-
up, annual, renewal and other fees due to such escrow agent. Regardless of any
release of source code, Nuance will not grant any right or license to VAR to
modify or enhance the Nuance Products.

20.  SURVIVAL AND ORDER OF PRECEDENCE. In the event of any expiration or
termination of this Agreement, the provisions OF SECTION 1 ("DEFINITIONS"),
SECTION 6 ("CONFIDENTIAL INFORMATION"), SECTION 9 ("INVOICES AND PAYMENTS"),
SECTION 10 ("REPORTS AND RIGHT TO AUDIT"), SECTION 11.1 ("TERM"), SECTION 11.4
("EFFECT"), SECTION 12 ("WARRANTY AND DISCLAIMER"), SECTION 14 ("VAR SUPPORT OF
END USERS"), SECTION 15 ("INDEMNITIES AND LIMITATION OF LIABILITY"), SECTION 16
("TAXES"), SECTION 20 ("SURVIVAL AND ORDER OF PRECEDENCE") and SECTION 21
("GENERAL"), except SECTION 21.10, shall survive and shall continue to bind the
parties. In the event of any conflict between the terms of this Agreement and
the terms of any Exhibit, the terms of the Exhibit shall control.

21.  GENERAL.

     21.1   ARBITRATION. All disputes which by statute are not exclusively
subject to court determination, shall be settled before a panel of three
arbitrators meeting in Chicago, Illinois (unless the parties mutually agree to
an alternate venue), in accordance with the Rules of the American Arbitration
Association. The arbitrators shall have the powers of a California Court,
including the power to order discovery and to issue legal or equitable remedies;
their award shall be final and binding. Judgment thereon may be entered,
confirmed and enforced in any court having jurisdiction of the party against
whom enforcement is sought. For the purpose of confirming and/or enforcing the
award of any proceedings, service pursuant to the notice provisions above shall
be sufficient.

     21.2   GOVERNING LAW. This Agreement shall be governed in all respects by
the laws of the United States of America and the State of California without
regard to conflicts of law principles. The parties agree that the United Nations
Convention on Contracts for the International Sale of Goods is specifically
excluded from application to this Agreement.

     21.3   ATTORNEYS' FEES. In the event any proceeding or lawsuit is brought
by Nuance or VAR in connection with this Agreement, the prevailing party in such
proceeding shall be entitled to receive its costs, expert witness fees and
reasonable attorneys' fees, including costs and fees on appeal.

                                       18
<PAGE>

     21.4   INJUNCTIVE RELIEF. It is understood and agreed that, notwithstanding
any other provisions of this Agreement, breach of the provisions of this
Agreement by VAR will cause Nuance irreparable damage for which recovery of
money damages would be inadequate, and that Nuance shall therefore be entitled
to obtain timely injunctive relief to protect Nuance's rights under this
Agreement in addition to any and all remedies available at law.

     21.5   NOTICES. All notices or reports permitted or required under this
Agreement shall be in writing and shall be delivered by personal delivery or by
certified or registered mail, return receipt requested, and shall be deemed
given upon personal delivery or five (5) days after deposit in the mail. Notices
shall be sent to the parties at the addresses described on the Signature Page or
such other address as either party may designate for itself in writing.

     21.4   NO AGENCY. Nothing contained herein shall be construed as creating
any agency, partnership, or other form of joint enterprise between the parties.

     21.5   FORCE MAJEURE. Neither party shall be liable hereunder by reason of
any failure or delay in the performance of its obligations hereunder (except for
the payment of money) on account of strikes, shortages, riots, insurrection,
fires, flood, storm, explosions, acts of God, war, governmental action, labor
conditions, earthquakes, material shortages or any other cause which is beyond
the reasonable control of such party.

     21.6   WAIVER. The failure of either party to require performance by the
other party of any provision hereof shall not affect the full right to require
such performance at any time thereafter; nor shall the waiver by either party of
a breach of any provision hereof be taken or held to be a waiver of the
provision itself.

     21.7   SEVERABILITY. In the event that any provision of this Agreement
shall be unenforceable or invalid under any applicable law or be so held by
applicable court decision, such unenforceability or invalidity shall not render
this Agreement unenforceable or invalid as a whole, and, in such event, such
provision shall be changed and interpreted so as to best accomplish the
objectives of such unenforceable or invalid provision within the limits of
applicable law or applicable court decisions.

     21.8   USE OF VAR'S NAME. VAR agrees that Nuance may use VAR's name and may
disclose that VAR is a licensee of Nuance products in Nuance advertising,
promotion and similar public disclosures with respect to the Software; provided,
however, that such advertising, promotion or similar public disclosures shall
not indicate that VAR in any way endorses any Nuance products. Nuance agrees
that VAR may use Nuance's name and may disclose that Nuance is a licensor to VAR
in VAR advertising, promotion and similar public disclosures with respect to the
Software; provided, however, that such advertising, promotion or similar public
disclosures shall not indicate that Nuance in any way endorses any VAR products.

     21.9   HEADINGS. The section headings appearing in this Agreement are
inserted only as a matter of convenience and in no way define, limit, construe,
or describe the scope or extent of such section or in any way affect this
Agreement.

     21.10  ASSIGNMENT. Neither this Agreement nor any rights or obligations of
a Party hereunder may be assigned by that Party in whole or in part without the
prior written approval of the other Party.

     21.11  COUNTERPARTS. This Agreement may be executed simultaneously in two
or more counterparts, each of which will be considered an original, but all of
which together will constitute one and the same instrument.

     21.12  ENTIRE AGREEMENT. This Agreement together with the Exhibits hereto
completely and exclusively states the agreement of the parties regarding its
subject matter. It

                                       19
<PAGE>

supersedes, and its terms govern, all prior proposals, agreements, or other
communications between the parties, oral or written, regarding such subject
matter. The terms of any shrink-wrap agreement accompanying any Software
delivered by Nuance hereunder shall, to the extent inconsistent with the terms
of this Agreement, have no effect whatsoever. This Agreement shall not be
modified except by a subsequently dated written amendment or Exhibit signed on
behalf of Nuance and VAR by their duly authorized representatives.

                                       20
<PAGE>

[*]   CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY
      WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
      RESPECT TO THE OMITTED PORTIONS.

                                 EXHIBIT A-__
                                   SOFTWARE

The following Software is subject to the Software License granted pursuant to
the Agreement, and all of the terms and conditions therein, as specifically
licensed in an executed Exhibit B ("Full Use License") or Exhibit C ("Limited
Use License") and applicable Purchase Order. Additional Nuance Software may be
added to the following list by mutual agreement of the parties:

                                              List Price Per Copy (U.S. Dollars)
                                              ---------------------------------
     Product Name                                [***]              [***]
     ------------                             -------------     ---------------
     [***]                                     $[***]            $[***]

                                               $[***]            $[***]

                                               $[***]            $[***]

                                               $[***]             [***]

                                               $[***]            $[***]

                                               $[***]            $[***]

                                               $[***]            $[***]

The [***] fee [***] is calculated at [***]% of the total list price license fees
paid by the customer for the [***] subject to the following limits:

                                     [***]

                                       1
<PAGE>

[*]   CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY
      WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
      RESPECT TO THE OMITTED PORTIONS.

Additional Terms:

     1.   The Nuance Developer's Toolkit may be used solely for application
          development and system prototyping. It may not be used in an
          operational environment.

     2.   Sales of the Nuance U.S. Stocks & Mutual Funds Grammar Update Service
          do not accrue to the Reseller Discount Table specified in SECTION
          9.1.5.

     3.   All Nuance Products designated as Grammars or applications must be
          used solely in connection with the Nuance RecServer.

     4.   Prices are subject to change, subject to the provisions of Section
          9.1.7 of the Agreement. VAR shall have [***] days from the
          announcement of a price change by Nuance to implement such change.
          Except by written agreement, Nuance will not accept Purchase Orders
          that fail to reflect the subject price change after the 90 day
          implementation period has passed.

     5.   Nuance agrees to make available to VAR all Software that is released
          as a generally available product to other Nuance vars or end user
          customers. Such Software will be made available at its commercial list
          price less VAR discount at the general availability date offered to
          other Nuance vars or end user customers.

     6.   Nuance agrees that for existing customers of VAR, and for prospective
          customers of VAR for whom proposals are outstanding from VAR prior to
          March 1, 1998, that the list price of $[***] may be offered through
          December 31, 1999. VAR agrees to provide to Nuance by March 31, 1998,
          a list of all such customers and prospective customers for whom
          proposals were outstanding prior to March 1, 1998.

Any Software License granted by execution of an Exhibit B ("Full Use License")
or Exhibit C ("Limited Use License") and applicable Purchase Order or the Test
and Integration License shall be valid only when the Software is used as part of
an Integrated System, which shall include as a minimum: for Full Use Licenses,
Periphonics commercially available Interactive Voice Response Systems (hardware
and software, including all system options and features) and the Nuance
Software; and in the case of Limited Use Licenses, Periphonics commercially
available Interactive Voice Response Systems (hardware and software, including
all system options and features), the Periphonics application described in
Exhibit C, and the Nuance Software.

                                       2
<PAGE>

                                 EXHIBIT B-__
                               FULL USE LICENSE

Nuance grants to VAR a Full Use License to the Software under the terms and
conditions of the Agreement for the number of copies ordered pursuant to a
Purchase Order accepted by Nuance and attached as a Schedule hereto (each such
Purchase Order to be attached sequentially as Schedule B-1-_). This Full Use
License is only valid for the number of copies of the Software ordered by VAR
pursuant to a Purchase Order accepted by Nuance and for use in an Integrated
System. No other license to the Software is granted and any unauthorized copying
or access to the Software not specifically licensed herein is strictly
prohibited.

NUANCE COMMUNICATIONS                    [VAR]

By:____________________________          By:______________________________

Title:_________________________          Title:___________________________

Date:__________________________          Date:____________________________

                                       1
<PAGE>

                                 EXHIBIT C-__
                              LIMITED USE LICENSE

If so indicated by VAR's and Nuance's initials on the Signature Page and
signatures hereon, and subject to VAR's obligations hereunder including without
limitation VAR's payment of Software License Fees, VAR shall be granted an
Limited Use License as follows:

DESCRIPTION OF SOFTWARE BY NAME, FORMAT AND EXHIBIT
---------------------------------------------------

AUTHORIZED GRAMMAR VOLUME:
-------------------------

AUTHORIZED PORT VOLUME:
----------------------

DESCRIPTION OF INTEGRATED SYSTEM:
--------------------------------

NUANCE COMMUNICATIONS                    [VAR]

By:_______________________________       By:_________________________________

Title:____________________________       Title:______________________________

Date:_____________________________       Date:_______________________________

                                       1
<PAGE>

                                   EXHIBIT D

                             PROFESSIONAL SERVICES

Nuance and VAR agree that when Nuance Professional Services are desired by VAR
that an Exhibit D will be completed for each project or service. Each Exhibit D
shall include but not be limited to the following terms: scope of effort,
schedule for deliverables, acceptance criteria and payment terms.

NUANCE COMMUNICATIONS                    [VAR]

By:______________________________        By:________________________________

Title:___________________________        Title:_____________________________

Date:____________________________        Date:______________________________

                                       1
<PAGE>

                                   EXHIBIT E
                                 MINIMUM TERMS

VAR shall ensure that its End Users are not provided Software unless such End
Users first do one of the following:

(a)  sign VAR's own software license agreement (or modifications thereto), and
VAR's standard order forms (such as a VAR's "Schedule A" form), containing terms
which substantially communicate the below stipulations with respect to the
Software which is licensed to VAR by Nuance and relicensed by VAR to its End
Users under this Agreement; or,

(b)  provide a purchase order or similar signed written agreement to VAR,
referencing a proposal issued by VAR which substantially communicates the below
stipulations with respect to the Software which is licensed to VAR by Nuance and
relicensed by VAR to its End Users under this Agreement.

In either of the above cases, VAR shall ensure that the applicable agreement is
fully enforceable in all jurisdictions in which the Integrated System is Sold.
All sublicenses of the Software shall be non-transferable unless the party to
whom an End User wishes to transfer such license agrees to be bound by the terms
of the original End User License Agreement.

The parties agree that as a condition of the rights and licenses granted by
Nuance hereunder, each End User License shall contain, at a minimum,
substantially the following terms, allowing reasonable modifications to keep
consistent terminology and without materially changing the associated meaning:

1.   End User accepts a non-exclusive, non-transferable license to use the
Software that End User obtains from VAR under the Agreement, as follows:

     i.   to use the Software solely for End User's own internal business
operations on the Integrated System or on a backup system, up to any applicable
number of designated users or other limitation (if any limitation applies). End
User shall not have the right to manufacture, sell, or otherwise commercially
exploit, except in support of End User's own internal business operations, any
product, system, or service based in whole or in part on the Software. End User
agrees it will not sublicense, transfer, pledge, lease, rent, or share its
rights under this Agreement;

     ii.  to use the Documentation provided with the Software in support of End
User's authorized use of the Software;

     iii. to copy the Software for archival or backup purposes; no other copies
shall be made without Nuance's prior written consent. End User may use the
Software on a single backup Integrated System if the production Integrated
System for which they were acquired is rendered inoperable. Under no
circumstances shall End User use the Software on the production Integrated
System and the backup Integrated System simultaneously. End User agrees not to
alter, change, or remove from the Software any identifications, including
copyright and trademark notices, and further agrees to place such markings on
any copies of the Software. All archival and backup copies of the Software are
subject to the terms of this Agreement.

End User shall not copy or use the Software (including the Documentation) except
as otherwise specified in the End User license.

2.   Nuance shall retain all right, title and interest in the Software,
including patent, copyright, trade secret, and trademark rights. Except as
otherwise expressly stated in the End User agreement, End User does not acquire
any rights, express or implied, in the Software.

                                       1
<PAGE>

3.   End User shall not cause or permit the reverse engineering, decompilation,
disassembly or other translation of the Software.

4.   Foreign Government Agreements. VAR shall take all reasonable steps in
making proposals and agreements with foreign governments other than the United
States which involve the Software and related documentation to ensure that
Nuance's proprietary rights in such Software and related documentation receive
the maximum protection available from such foreign government for commercial
computer software and related documentation developed at private expense.

5.   Third Party Beneficiary. VAR shall ensure that each End User agrees that
Nuance is a third-party beneficiary to the End User License Agreement. Such
provisions are made expressly for the benefit of Nuance and are enforceable by
Nuance in addition to VAR.

6.   No Warranty. The End User shall agree that VAR'S SUPPLIERS DO NOT MAKE OR
PASS ON TO END USER OR ANY OTHER THIRD PARTY, ANY EXPRESS, IMPLIED OR STATUTORY
WARRANTY OR REPRESENTATION ON BEHALF OF NUANCE, INCLUDING BUT NOT LIMITED TO THE
IMPLIED WARRANTIES OF NON-INFRINGEMENT, TITLE, MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE.

7.   Limitation of Liability. The End User shall agree that IN NO EVENT SHALL
VAR'S SUPPLIERS BE LIABLE TO END USER FOR ANY INDIRECT, SPECIAL, CONSEQUENTIAL,
PUNITIVE OR INCIDENTAL DAMAGES, REGARDLESS OF HOW ARISING, REGARDLESS OF THE
CAUSE OF ACTION, IN TORT, CONTRACT OR OTHERWISE, AND REGARDLESS OF WHETHER
ADVISED BEFOREHAND OF THE POSSIBILITY OF SUCH DAMAGES.

8.   In-Service Data. Subject to the right of the End User to waive, in writing,
Nuance's right to the In-Service Data, the End User shall provide Nuance with
reasonable access to all In-Service Data generated through the use of each
Integrated System in which the Software is installed. Any such written waiver
shall include all of the terms described in Subsection 13.5 ("In Service Data").

                                       2
<PAGE>

[*]   CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY
      WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
      RESPECT TO THE OMITTED PORTIONS.

                                 EXHIBIT F-__
                          TECHNICAL SUPPORT SERVICES

DESCRIPTION OF TECHNICAL SUPPORT SERVICES
-----------------------------------------

Responsibilities of Nuance and VAR:

     VAR shall be responsible for providing Level 1 and Level 2 Technical
Support Services to End Users. Level 1 Technical Support Services means receipt
of all calls from End Users for such services and the determination of the issue
causing the condition reported by the end user. Level 2 Technical Support
Services means resolving any End User issue caused by a defect in the Software
when Nuance has provided electronic notice of the defect and the needed support
action to VAR's Designated Personnel.

     Nuance shall be responsible for Level 3 Support to VAR. Level 3 Technical
Support Services means the creation of modifications to the Software which
enable the temporary or permanent resolution of a defect in the Software for
which a resolution has not been electronically distributed to VAR's Designated
Personnel.

     Nuance shall provide telephone hot line support to VAR's Designated
Personnel for delivery of Technical Support Services. Nuance's telephone hot
line shall be staffed by technical personnel with a detailed, working knowledge
of the Software.

     VAR shall provide Designated Employees who have been trained on the
Software and who are experienced in providing Technical Support Services to End
Users.

Basic Level Support ("Basic Technical Support Services"):

     Nuance will provide Technical Support Services to Designated Employees of
VAR on behalf of End Users who have signed Technical Support Agreements with VAR
for Basic Level Technical Support Services. Such End User Technical Support
Services agreements shall provide for service during a nine hour period between
7:30am and 5:30pm local time for the End User.

Premium Level Support ("Premium Technical Support Services"):

     Nuance will provide Technical Support Services to Designated Employees of
VAR on behalf of End Users who have signed Technical Support Agreements with VAR
for Premium Level Technical Support Services. Such End User Technical Support
Services agreements shall provide for service twenty-four (24) hours per day,
seven (7) days per week.

Technical Support Services Fees:

     Basic Level Technical Support Services fees are equal to [***]% per year of
the license fee for all Software installed at the End User.

     Premium Level Technical Support Services fees are equal to [***]% per year
of the license fee for all Software installed at the End User.

Determination of Defect Severity and Response Times:

     Upon receipt of a request for Level 3 Technical Support Services from
Designated Employees of VAR, Nuance and VAR's Designated Employees will agree to
the Severity of the specific defect and associated Nuance Response Times as
defined below:

     Severity

Severity 1 shall mean an incident in which the defect in the Software has
created a situation in which the End User is unable to do productive work.

                                       1
<PAGE>

[*]   CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY
      WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
      RESPECT TO THE OMITTED PORTIONS.

Severity 2 shall mean that a major function of the Software is unusable and no
known resolution is available that is mutually acceptable to Nuance and VAR, but
that the user is able to do some production work.

Severity 3 shall mean that there is a loss of function in the Software that does
not seriously affect the End User's operations or schedules. Any defect which
was originally reported as Severity 1 or Severity 2, but which has been
temporarily resolved by a mutually acceptable temporary resolution, shall be
reduced to Severity 3 at the time the temporary resolution has been
electronically distributed to VAR,

Severity 4 shall mean all other defects in the Software other than those falling
within the categories above.

Severity 5 as used herein shall mean requested enhancements to the product.

     Response Times Objectives for Acknowledging Incident

Upon receiving notice from Designated Employees of VAR of a defect in the
Software, Nuance shall acknowledge receipt of such notice. Such acknowledgment
shall contain a unique number identifying the particular incident for tracking
purposes. Nuance shall provide VAR with a periodic status update for any defect
reported by VAR identifying each defect by the tracking number assigned to it by
Nuance. Each defect reported by VAR shall remain open until closure is agreed
between Nuance and VAR.

Nuance will acknowledge requests from VAR for Technical Support Services as
follows:

          Severity 1 or 2 - less than [***]

          Severity 3 through 5 - within [***].

     Response Time Objectives for Resolution of Incident Nuance shall make
reasonable commercial efforts to provide a work-around or resolution for the
reported defect in the Software in conformance with the following objectives:

          Severity 1: within [***] of receipt of notice of the defect from VAR.

          Severity 2: within [***] of receipt of notice of the defect from VAR.

          Severity 3, 4, or 5: resolved in a future release of the product

Defect Report Form

     Nuance and VAR agree to define a Defect Report Form that is mutually
acceptable and which, as revised or replaced from time to time, shall be the
means used for the transfer of information defining suspected defects for
resolution. Nuance shall provide VAR with an electronic mail address for receipt
of above forms. Notwithstanding the foregoing, in case of a Severity 1 or
Severity 2 incident attributable to the Software, VAR's Designated Personnel may
request Technical Support Services through the telephone hot-line. VAR shall be
provided reasonable access to Nuance's defect database to review the status of
defects related to the Software.

On-Site Assistance

     Upon VAR's request and subject to availability, Nuance may furnish
qualified personnel for on-site assistance to VAR and/or Sub-licensees to
resolve defects in the Software. In such event, VAR shall pay Nuance at its then
current time and materials rates for the time of required personnel and
reimburse Nuance for reasonable travel and living expenses of such personnel
incurred in rendering the requested assistance; provided, however, that Nuance
shall not be entitled to payment for the time of its personnel if such
assistance is required to resolve a Severity 1 defect in the Software and

                                       2
<PAGE>

such defect cannot otherwise be reasonable resolved in a timely manner.

Termination of Support for Products Listed on Exhibit A

     In the event that Nuance should terminate support for a specific version or
release of a Nuance product listed in Exhibit A, Nuance's support obligations to
VAR with respect to that product shall terminate at the same time such support
is terminated for other Resellers or Nuance's end users and subject to the same
notice period. In addition, Nuance agrees to support the three previous Releases
of any Nuance product listed in Exhibit A (and licensed to VAR) or all Releases
licensed to VAR within any three year period, whichever is later, as current
under the terms of this Agreement (e.g. upon release of release 6.3 of the
Nuance RecServer, support for release 6.0 and its minor releases, 6.0.1, etc.,
may be terminated.

Miscellaneous Nuance Obligations

Nuance shall provide VAR's Designated Employees initial training in the
installation, maintenance, and operation of the Software.

If a major release or upgrade of any product listed on Exhibit A is made
available for which additional training becomes available, Nuance shall promptly
notify VAR, and as requested by VAR, enroll for up to two (2) Designated
Employees in the next available training course subject to prior enrollment
commitments. Such training shall be made available within 30 days of the
availability of the new release, if possible. The training will be of sufficient
detail to allow VAR's Designated Employees to each their co-workers as
appropriate and will include reproducible course materials.

Nuance will make available to VAR all Nuance tools that are commercially
available to other Value Added Resellers. Tools may be for use in deployment,
configuration, and performance improvement the Software. Nuance will also
provide VAR with reasonable support, under terms to be agreed, in VAR's efforts
to develop its capability to provide call script design, recognition grammar
development, and in-service application debugging and tuning.

                                      3.
<PAGE>

NUANCE COMMUNICATIONS                    [VAR]

By:___________________________           By:______________________________

Title:________________________           Title:___________________________

Date:_________________________           Date:____________________________

                                       4
<PAGE>

[*]   CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY
      WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
      RESPECT TO THE OMITTED PORTIONS.

                            SCHEDULE 1 TO EXHIBIT F

                           TECHNICAL SUPPORT SERVICES
                                  FEE SCHEDULE

The Fees for Technical Support Services provided pursuant to the Agreement,
EXHIBIT F ("TECHNICAL SUPPORT SERVICES"), and any applicable Purchase Order
shall be as follows:

For Basic Technical Support Services:    [***]% of Software List Price

For Premium Technical Support Services:  [***]% of Software List Price

For the purposes of this Agreement, if VAR elects to receive Basic Technical
Support Services, there will be [***]. If VAR elects not to receive Technical
Support Services, [***]. If VAR elects to receive Premium Technical Support
Services, [***].

                                       1
<PAGE>

                                   EXHIBIT G
                               NUANCE TRADEMARKS

The following trademarks and respective notices are subject to the terms of the
Agreement, specifically Section 3.5 ("Trademark License"), and shall be used in
accordance therewith in conjunction with an applicable Software License:

               (1) "Nuance Communications" TM is a trademark of Nuance
               Communications.

               (2) "RecClient TM and RecServer TM" are trademarks of Nuance
               Communications.

               (3) "Conversational Transactions" TM is a trademark of Nuance
               Communications.

               (4) "Nuance BillPayer" TM is a trademark of Nuance
               Communications.

Such other symbols and notices as may be prescribed by Nuance from time to time.

                                       1
<PAGE>

                                   EXHIBIT H

                                                 AGREEMENT NO. _________________
                                            REFERENCE P.O. NO. _________________

                                  ORDER FORM
                                  ----------

This Order is placed by VAR under the Definitive Agreement dated _____________.
The Agreement is incorporated by reference as though set forth in full herein.
The effective date of this Order shall be _____________________.

<TABLE>
<CAPTION>
SOFTWARE
--------

QUANTITY    PRODUCT        MACHINE      MACHINE     PRICE   TYPE     CUSTOMER      NUMBER OF
                           IDENTIFIERS  NAME(S)     (PER    OF       APPLICATION   PORTS (IF
                                                    COPY)   LICENSE  (IF           APPLICABLE)
                                                                     APPLICABLE)
<S>         <C>            <C>          <C>         <C>     <C>      <C>           <C>
            V6.0
            Developer's
            Toolkit

            V6.0 Run-
            time Server
            License

            V6.0 Run-
            time Client
            License
</TABLE>

                                       1
<PAGE>

<TABLE>
<CAPTION>

SERVICES
--------

QUANTITY    SERVICE      MACHINE        MACHINE     PRICE   LICENSE  CUSTOMER      NUMBER
                         IDENTIFIER(S)  NAME(S)     (PER    TYPE     APPLICATION   OF PORTS
                                                    COPY)            (IF
                                                                     APPLICABLE)
<S>         <C>          <C>            <C>         <C>     <C>      <C>           <C>
            Technical
            Support-
            Nuance
            Toolkit

            Technical
            Support-
            Runtime
            Server
            Software

            Technical
            Support-
            Runtime
            Client
            Software
</TABLE>

LOCATION FOR SOFTWARE INSTALLATION          CONTACT INFORMATION
----------------------------------          -------------------
                                            Technical Contact Person:

___________________________________         ___________________________________
                                            Title:

___________________________________         ___________________________________
                                            Phone Number:

___________________________________         ___________________________________
SPECIFICATION REFERENCE NO./DATE:           E-mail:
DATE DELIVERY REQUIRED:                     ___________________________________

IN WITNESS WHEREOF, the parties hereto have executed this Agreement.

NUANCE COMMUNICATIONS                       VAR

Authorized Signature:__________________     Authorized
Signature:______________________

Printed Name:__________________________     Printed
Name:______________________________

Title:_________________________________
                                            Title:____________________________

                                       1
<PAGE>

                                 EXHIBIT I-___
                                   AMENDMENT

Notwithstanding anything to the contrary in this Agreement, the terms contained
in this EXHIBIT I ("AMENDMENT") shall be in addition to any other terms of the
Agreement, and shall supersede and take precedence over any conflicting terms
therein. Except as expressly modified by this EXHIBIT I ("AMENDMENT"), all terms
of this Agreement shall survive, and shall continue to bind the parties:

                                       1
<PAGE>

                                   EXHIBIT J

                   CUSTOMER SPECIFIC ACCEPTANCE REQUIREMENTS

Nuance and VAR agree that the following customer specific acceptance
requirements shall apply to the Software in accordance with the Agreement and
this EXHIBIT J.

NUANCE COMMUNICATIONS                    [VAR]

By:______________________________        By:_________________________________

Title:___________________________        Title:______________________________

Date:____________________________        Date:_______________________________

                                       1
<PAGE>

                                 EXHIBIT K-__
                                    ESCROW

                         SOURCE CODE ESCROW AGREEMENT

     THIS SOURCE CODE ESCROW AGREEMENT ("Escrow Agreement") is entered into as
of this ____ day of _________, 199_ (the "Effective Date") between NUANCE
COMMUNICATIONS, a California corporation having a place of business at 1380
Willow Road, Menlo Park, CA 94025 ("Nuance"), and __________________________, a
_______________ corporation having a place of business at ____
_________________________________ ("VAR"), and __________________________, a
____________ corporation having a place of business at _____
___________________________________("Escrow Agent").

                                   RECITALS

     A.   Concurrent with the execution of this Escrow Agreement, VAR and Nuance
are entering into a Value-Added Reseller Agreement (the "VAR Agreement")
pursuant to which Nuance has licensed to VAR certain rights with respect to the
Software (as defined in the VAR Agreement);

     B.   Nuance and VAR now wish to enter into an escrow agreement which
provides for Nuance's deposit of the source code of the Software and related
materials with an escrow agent reasonably satisfactory to VAR and Nuance, and
further that, under circumstances to be specified in this Escrow Agreement, VAR
may obtain the foregoing materials from the Escrow Agent solely for the purpose
of maintaining and supporting properly licensed end users of the Nuance
Software.

     NOW, THEREFORE, for good and valuable consideration, the receipt of which
is hereby acknowledged and in consideration of the promises, mutual covenants
and conditions contained herein, the parties agree as follows:

                                   AGREEMENT

     1.   DEFINITION OF ESCROW MATERIALS. The escrow materials ("Escrow
          ------------------------------
Materials") to be stored by the Escrow Agent consist of one full copy of the
source code and related documents which pertain to the Software and which are
reasonably necessary to enable a software engineer of ordinary skill to diagnose
and correct Errors in the Software. The Escrow Materials shall also include any
Updates of the Software created by Nuance and deliverable to VAR pursuant to
SECTION 13 ("TECHNICAL SUPPORT SERVICES") of the VAR Agreement.

     2.   DEPOSIT. Within sixty (60) days of Nuance's delivery to VAR of the
          -------
Software in accordance with SECTION 4 ("DELIVERY AND ACCEPTANCE") of the VAR
Agreement, Nuance shall deliver (or shall have already delivered) to the Escrow
Agent a sealed package certified by an authorized officer of Nuance to contain a
complete set of the Escrow Materials as defined in PARAGRAPH 1 ("Definition of
Escrow Materials") hereof, for such Software. Each deposit of the source code
for Software shall constitute a "Deposit".

     3.   RECEIPT BY ESCROW AGENT. Nuance shall furnish to the Escrow Agent a
          -----------------------
packing list in triplicate describing each Deposit made hereunder. The Escrow
Agent shall issue a receipt for each Deposit received and forward copies of such
receipts and packing lists to both VAR and Nuance.

     4.   STORAGE OF MATERIALS; INSPECTION. The Escrow Agent shall establish
          --------------------------------
under its control a receptacle for the purpose of storing the Escrow Materials
in safekeeping in an appropriate physical facility and shall allow the
inspection of the Escrow Materials only upon written authorization from Nuance
or as otherwise directed by a final order of a court of competent jurisdiction;
provided, however, that VAR shall be entitled to not more than one inspection in
any calendar year, and Nuance must be given at least

                                       1
<PAGE>

[*]   CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY
      WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
      RESPECT TO THE OMITTED PORTIONS.

ten (10) days' written notice prior to such inspection. Any such inspection
shall be in the presence of an authorized representative of Escrow Agent and
Nuance shall have the right to attend such inspection, at its option. Access to
the Escrow Materials shall be permitted to authorized representatives of Escrow
Agent to the extent necessary for Escrow Agent to perform its obligations
pursuant to this Escrow Agreement.

     5.   RECORDS. The Escrow Agent agrees to keep complete written records of
          -------
the activities undertaken, and materials prepared and delivered to Escrow Agent
(including all Deposits), pursuant to this Escrow Agreement. Nuance or VAR shall
be entitled at reasonable times, during normal business hours, and upon
reasonable notice to Escrow Agent, during the term of this Escrow Agreement to
inspect the records of Escrow Agent with respect to the Escrow Materials. Nuance
shall be entitled upon reasonable notice to Escrow Agent and during normal
business hours to inspect the facilities of Escrow Agent with respect to the
physical status and condition of the Escrow Materials.

     6.   TERM. This Escrow Agreement shall remain in effect so long as the VAR
          ----
Agreement is in effect. Upon expiration of this Agreement or the VAR Agreement,
the portion, if any, of the Escrow Materials not previously withdrawn by VAR in
accordance with the terms hereof, shall be redelivered to Nuance and this
Agreement shall thereupon terminate.

     7.   RELEASE EVENTS. The following events ("Release Events") shall
          --------------
constitute events of default by Nuance which give VAR the right to receive for
its own and sole use only, a single copy of the Escrow Materials from the Escrow
Agent pursuant to PARAGRAPH 8 ("Delivery of Escrow Materials to VAR") hereof:

          (A) [***]
          (B) [***]

     8.   DELIVERY OF ESCROW MATERIALS TO VAR.
          -----------------------------------

          (a) Upon the occurrence of either of the Release Events described in
PARAGRAPH 7 ("Release Events") hereof, Escrow Agent agrees and is hereby
specifically authorized to provide the Escrow Materials to VAR upon written
request by VAR. Prior to delivery of the Escrow Materials, (i) VAR must have
given written notice to Escrow Agent of the occurrence of a Release Event, which
notice shall specify the nature of such Release Event; (ii) Escrow Agent must
have transmitted a copy of the VAR notice to Nuance; and (iii) within twenty
(20) days after receipt of the VAR notice from Escrow Agent, Nuance must have
failed to notify Escrow Agent in writing that Nuance disputes VAR's notice.

          (b) If Nuance disputes VAR's notice of default, then within thirty
(30) days subsequent to VAR's notice, Nuance must file with Escrow Agent an
affidavit executed by an authorized representative of Nuance stating that no
such Release Event has occurred or that the Release Event has been cured. If
Nuance fails to file such an affidavit, then Escrow Agent shall deliver the
relevant Escrow Materials in accordance with the instructions of VAR. If Nuance
files an affidavit disputing VAR's claim that a Release Event has occurred, then
Escrow Agent shall not deliver the Escrow Materials to either VAR or Nuance
until directed to do so by Nuance and VAR jointly or by an arbitrator, or until
Escrow Agent is ordered to do so by a final order of a court of competent
jurisdiction, and upon such delivery this Escrow Agreement shall

                                       2
<PAGE>

terminate with respect to the Escrow Materials so delivered.

          (c) Except as provided in PARAGRAPH 8(D) below, any dispute concerning
the delivery of any or all of the Escrow Materials to VAR by Escrow Agent shall
be settled by arbitration, to take place in Santa Clara or San Francisco County,
California, within thirty (30) days following Nuance's delivery of an affidavit
to Escrow Agent pursuant to PARAGRAPH 8(B) above, in accordance with the then-
prevailing rules of the American Arbitration Association. Depositions may be
taken and discovery obtained in any such arbitration proceedings in accordance
with California Code of Civil Procedure ("CCP") Section 1283.05, which is
incorporated herein by this reference in accordance with the provisions of CCP
Section 1283.1(b). The limitations on subject matter set forth in CCP Section
1283.1 shall be of no force and effect herein. Judgment upon the award rendered
by the arbitrator(s) may be entered in any court having jurisdiction thereof.

          (d) Notwithstanding PARAGRAPH 8(C) above, either party shall have the
right to obtain a preliminary judgment on any equitable claim in any court of
competent jurisdiction, where such judgment is necessary to preserve property
and/or proprietary rights under this Escrow Agreement. Such judgment shall
remain effective as long as the terms of the judgment so provide, or until
specifically superseded by the action of the arbitrator(s) as provided in
PARAGRAPH 8(C) above.

     9.   LICENSE GRANT FOR USE OF ESCROW MATERIALS; CONFIDENTIALITY; LIABILITY
          ---------------------------------------------------------------------
FOR DISCLOSURE.
--------------

          (a) If, and only if, the Escrow Materials are released to VAR pursuant
to PARAGRAPH 8 ("Delivery of Escrow Materials to VAR") hereof, Nuance hereby
grants VAR the right to use such Escrow Materials solely for the purpose of
maintaining object code versions of the Software for VAR's existing customers as
of the date the VAR Agreement terminates in accordance with SECTION 9 ("TERM AND
TERMINATION") of such Agreement, and for no other reason whatsoever.

          (b) VAR acknowledges and agrees that use of the Escrow Materials is
furnished to VAR on a confidential and secret basis for the sole and exclusive
use of VAR, and not for sale, sublicense or disclosure to third parties. In the
event that VAR obtains the Escrow Materials pursuant to the terms hereof, VAR
agrees that it will not (1) publish, disclose or otherwise divulge the Escrow
Materials to any person, except officers or employees of VAR who have entered
into commercially reasonable non-disclosure agreements and need access to the
Escrow Materials to perform their duties, at any time, either during the term or
after the termination of this Escrow Agreement, nor (2) permit its officers or
employees to so divulge any Escrow Materials, without the prior written consent
of an officer of Nuance. Upon receipt of the Escrow Materials, VAR may make one
(1) machine-readable copy of the Escrow Materials solely for backup and archival
purposes. VAR agrees to reproduce and include all copyright and other
proprietary notices appearing in or on any and all Escrow Materials provided to
VAR by Nuance or Escrow Agent on any copy of the Escrow Materials made by VAR.

          (c) VAR agrees to take all necessary steps to prevent unauthorized
disclosure of the Escrow Materials, including but not limited to the following:

              (1) The building in which VAR uses the Escrow Materials shall have
access restricted to VAR employees and third party agents twenty-four (24) hours
a day;

              (2) The Escrow Materials shall be used only in a location within
such building to which access is further restricted to persons authorized to use
the Escrow Materials;

                                       3
<PAGE>

               (3) VAR shall prevent telephone, fax, e-mail or other remote
access to the Escrow Materials in such location from other locations;

               (4) The Escrow Materials shall be installed only on a single
computer system which is password protected and not connected to any other
computer or printer; further, all Escrow Materials files will be password
protected.

          (d)  VAR shall be liable to Nuance for all direct and indirect,
consequential, special and incidental damages resulting from any unauthorized
use or disclosure of the Escrow Materials. To the extent, if any, this Paragraph
9(d) is inconsistent or conflicts with any provision of the VAR Agreement, this
Paragraph 9(d) shall be controlling.

          (e)  The obligations of this PARAGRAPH 9 ("License Grant for Use of
Escrow Materials; Confidentiality; Liability for Disclosure") hereof shall
survive any termination or expiration of this Agreement.

     10.  DELIVERY SITE. Delivery of the Escrow Materials to VAR, or return of
          -------------
the Escrow Materials to Nuance, shall be at the offices of the Escrow Agent at
______________, unless special delivery instructions concerning delivery
elsewhere are furnished to the Escrow Agent by the party authorized hereunder to
receive the Escrow Materials.

     11.  OBLIGATIONS OF ESCROW AGENT. The Escrow Agent shall be responsible
          ---------------------------
only for the acceptance, storage, and delivery of the Escrow Materials in
accordance with the terms of this Escrow Agreement and for the exercise of due
diligence in accordance with the high level of care accorded fiduciary
obligations; shall have no obligation or responsibility to verify or determine
that the Escrow Materials deposited with Escrow Agent by Nuance do, in fact,
consist of those items which Nuance is obligated to deliver under this Escrow
Agreement; shall bear no responsibility whatsoever to determine the existence,
relevance, completeness, currency, or accuracy of the Escrow Materials; and
shall be entitled to act in good faith reliance upon any written instruction,
instrument, or signature believed in good faith to be genuine and to assume in
good faith that any person purporting to give any writing, notice, advice, or
written instruction in connection with, or relating to, this Escrow Agreement
has been duly authorized to do so.

     If Escrow Agent is uncertain of its duties or rights hereunder, it will
refrain from taking any action other than to safely retain the Escrow Materials
until it is directed otherwise in writing by Nuance and VAR jointly or by final
order of an arbitrator or a court of competent jurisdiction. Except as expressly
provided in this Escrow Agreement, Escrow Agent agrees that it will not divulge
or disclose or otherwise make available to third parties whatsoever, or make any
use whatsoever, of the Escrow Materials, or any information deposited with it by
Nuance in connection with this Escrow Agreement, without the express prior
written consent of Nuance.

     12.  INDEMNITY. Nuance and VAR jointly and severally agree to defend and
          ---------
indemnify Escrow Agent and to hold Escrow Agent harmless from and against any
and all claims, actions and suits, whether groundless or otherwise, and from and
against any and all liabilities, losses, damages, costs, charges, penalties,
counsel fees, and any other expense of any other nature, including, without
limitation, settlement costs incurred by Escrow Agent on account of any good
faith act or omission of Escrow Agent, in respect of, or with regard to, this
Escrow Agreement except as to the obligations of Escrow Agent specified in
PARAGRAPHS 4 ("Storage of Materials; Inspection") and 11 ("Obligations of Escrow
Agent") hereof.

     13.  COMPENSATION. The Escrow Agent shall be compensated as set forth on
          ------------
Schedule 1 ("Payment Schedule") attached hereto. The payments set forth in
----------
Schedule 1 are for Escrow Agent's ordinary services as escrow
----------

                                       4
<PAGE>

holder. In the event Escrow Agent is required to perform any additional or
extraordinary services as a result of being escrow holder, including
intervention in any litigation or proceeding, Escrow Agent shall receive, upon
prior written approval of the parties responsible for payment of Escrow Agent's
expenses, reasonable compensation for such services and be reimbursed for such
costs incurred, including reasonable attorneys' fees. All costs and expenses for
establishing and maintaining the escrow including but not limited to Escrow
Agent's compensation and expenses shall be borne by Nuance.

     14.  DISCHARGE OF ESCROW AGENT. Escrow Agent may resign and be discharged
          -------------------------
from its duties or obligations hereunder by giving notice in writing of such
resignation to Nuance and VAR specifying a date when such resignation shall take
effect, which date shall be at least sixty (60) days after the date of receipt
of such notice. Prior to the effective date of such resignation, with the prior
written consent of VAR, which shall not be unreasonably withheld, Nuance shall
arrange for the services of a new escrow agent, and Nuance and VAR agree to
execute and deliver another escrow agreement with such new escrow agent having
substantially the same terms as this Escrow Agreement. Upon Nuance notifying
Escrow Agent of the name and address of the new escrow agent, Escrow Agent
agrees to forward the Escrow Materials to such new escrow agent provided that
Escrow Agent has received payment pursuant to PARAGRAPH 13 ("Compensation").

     15.  MODIFICATION. These escrow instructions are irrevocable except as they
          ------------
may be revoked or modified by written consent of VAR, Nuance and the Escrow
Agent, jointly.

     16.  GOVERNING LAW. This Escrow Agreement shall be construed and
          -------------
interpreted in accordance with the laws of the State of California excluding the
application of principles of conflict of laws. Subject to the provisions of
SUBPARAGRAPH 8(C), the State and Federal Courts located in Santa Clara or San
Francisco County shall have sole and exclusive jurisdiction over any dispute
arising hereunder.

     17.  NOTICE. All notices required by this Escrow Agreement shall be
          ------
sufficiently given:

          (a) upon delivery, if given in person with a signed receipt;

          (b) if given by facsimile transmission, upon acknowledgment of receipt
of electronic transmission; or

          (c) if given by registered or certified mail (air mail if
international), postage prepaid, return receipt requested, five days after
deposit in the mail in accordance with the provisions hereof. All such notices
shall be addressed as follows:

              IF TO VAR:

              IF TO NUANCE:

              President
              Nuance Communications
              1380 Willow Road
              Menlo Park, CA 94025

              IF TO ESCROW AGENT:

or to such other person or address as the parties may from time to time
designate in a writing delivered pursuant to this PARAGRAPH 17 ("Notice").

     18.  SEVERABILITY. In the event that any provision of this Escrow Agreement
          ------------
shall be unenforceable or invalid under any applicable law or be so held by
applicable court or arbitration decision, such unenforceability or invalidity
shall not render this Agreement unenforceable or

                                       5
<PAGE>

invalid as a whole, and, in such event, such provision shall be changed and
interpreted so as to best accomplish the objectives of such unenforceable or
invalid provision within the limits of applicable law or applicable court
decisions.

     19.  WAIVER. The failure of any party hereto to require performance by
          ------
another party of any provision hereof shall not affect the full right to require
such performance at any time thereafter, nor shall the waiver by any party of a
breach of any provision hereof by any other party be taken or held to be a
waiver of the provision itself.

     20.  COUNTERPARTS. This Escrow Agreement may be executed in counterparts,
          ------------
each of which shall be deemed an original, but all of which shall constitute one
and the same instrument.

     21.  SURVIVAL. The following provisions shall survive any termination of
          --------
this Agreement or partial termination of this Agreement with respect to a
portion of the Escrow Materials delivered pursuant to PARAGRAPH 8 ("Delivery of
Escrow Materials to VAR"): PARAGRAPHS 9 ("License Grant for Use of Escrow
Materials; Confidentiality; Liability for Disclosure"), 12 ("Indemnity"), 16
("Governing Law"), 17 ("Notice"), 18 ("Severability"), 19 ("Waiver"), 20
("Counterparts") and 22 ("Entire Agreement").

     22.  ENTIRE AGREEMENT. This Escrow Agreement, together with any schedule
          ----------------
hereto, and the VAR Agreement, constitute the entire agreement between the
parties with respect to the subject matter hereof. This Escrow Agreement
supersedes oral, written or other communications concerning the subject matter
of this Escrow Agreement, and shall not be altered, amended, or modified except
in a writing signed by the duly authorized officers of each party hereto.

                                       6
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Escrow Agreement to
be executed as of the date and year hereinafter written.

NUANCE COMMUNICATIONS                    VAR:

By:_______________________________       By:________________________________

Title:____________________________       Title:_____________________________

Date:_____________________________       Date:______________________________

ESCROW AGENT:

[NAME]

By:________________________________________

Title:_____________________________________

Date:______________________________________

                                       7

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