<PAGE>   1
                                                                  EXHIBIT 10.19












                                      LEASE

                                 by and between

                               WILL PARTNERS, LLC
                      a Delaware limited liability company,

                                    as LESSOR

                                       AND

                             EKCO Housewares, Inc.,
                             a Delaware corporation

                                    as LESSEE

                                  May 13, 1999


<PAGE>   2


                                TABLE OF CONTENTS
<TABLE>
<S>                                                                                      <C>
ARTICLE 1..................................................................................1
         1.1      Leased Property; Term....................................................1

ARTICLE 2..................................................................................2
         2.1      Definitions and Certain Dispute Resolution Procedures....................2

ARTICLE 3..................................................................................7
         3.1      Basic Rent...............................................................7
         3.2      Additional Rent..........................................................8
         3.3      Late Payment.............................................................8
         3.4      Offset and Recapture Procedure...........................................9

ARTICLE 4..................................................................................9
         4.1      Payment of Impositions...................................................9
         4.2      Notice of Impositions...................................................10
         4.3      Adjustment of Impositions...............................................10
         4.4      Utility Charges.........................................................10
         4.5      Insurance Premiums......................................................10
         4.6      Limitation on Impositions...............................................10

ARTICLE 5.................................................................................12
         5.1      No Termination, Abatement, etc..........................................12

ARTICLE 6.................................................................................13
         6.1      Ownership of the Leased Property........................................13
         6.2      Lessee's Equipment......................................................13

ARTICLE 7.................................................................................13
         7.1      Lessor's Work...........................................................13
         7.2      Lessee's Work...........................................................18
         7.3      Construction by Lessee..................................................18
         7.4      Condition of the Leased Property........................................19
         7.5      Use of the Leased Property..............................................20
         7.6      Construction Delays.....................................................20

ARTICLE 8.................................................................................23
         8.1      Compliance with Legal and Insurance Requirements, Instruments, etc......23
         8.2      Capital Improvement Credit..............................................23

ARTICLE 9.................................................................................24
         9.1      Maintenance and Repair..................................................24
         9.2      Encroachments, Restrictions, etc........................................25

ARTICLE 10................................................................................25
         10.1     Alterations, Substitutions and Replacements.............................25
</TABLE>
<PAGE>   3
<TABLE>
<S>                                                                                       <C>
ARTICLE 11................................................................................26
         11.1     Environmental Matters...................................................26

ARTICLE 12................................................................................27
         12.1     Liens...................................................................27

ARTICLE 13................................................................................27
         13.1     Permitted Contests......................................................27

ARTICLE 14................................................................................28
         14.1     Insurance...............................................................28
         14.2     Policy Provisions and Certificates......................................29
         14.3     Subrogation.............................................................30

ARTICLE 15................................................................................30
         15.1     Notice of Damage, Destruction or Taking; Condemnation Awards............30
         15.2     Taking for Temporary Use................................................31
         15.3     Other Taking; Damage or Destruction; Repair or Replacement..............31

ARTICLE 16................................................................................32
         16.1     Intentionally Omitted...................................................32

ARTICLE 17................................................................................32
         17.1     Events of Default.......................................................32
         17.2     Surrender; Entry by Lessor..............................................34
         17.3     Reletting by Lessor.....................................................34
         17.4     Current Liquidated Damages..............................................34
         17.5     Final Liquidated Damages................................................35
         17.6     Waiver..................................................................36
         17.7     Limitation on Damages...................................................36

ARTICLE 18................................................................................36
         18.1     Lessor's Right to Cure Lessee's Event of Default........................36

ARTICLE 19................................................................................36
         19.1     Holding Over............................................................36

ARTICLE 20................................................................................37
         20.1     No Recourse to Lessor...................................................37

ARTICLE 21................................................................................37
         21.1     Risk of Loss............................................................37

ARTICLE 22................................................................................37
         22.1     Indemnification by Lessee...............................................38

ARTICLE 23................................................................................38
         23.1     Assignment..............................................................38
</TABLE>
<PAGE>   4
<TABLE>
<S>                                                                                       <C>
         23.2     Intentionally Omitted...................................................39
         23.3     Excess Rental...........................................................39

ARTICLE 24................................................................................39
         24.1     Lessor's Right to Inspect...............................................39
         24.2     Financial Statements....................................................40

ARTICLE 25................................................................................40
         25.1     No Waiver by Lessor.....................................................40

ARTICLE 26................................................................................40
         26.1     Remedies Cumulative.....................................................40

ARTICLE 27................................................................................40
         27.1     Acceptance of Surrender.................................................41

ARTICLE 28................................................................................41
         28.1     No Merger of Title......................................................41

ARTICLE 29................................................................................41
         29.1     Conveyance by Lessor....................................................41

ARTICLE 30................................................................................41
         30.1     Quiet Enjoyment.........................................................41

ARTICLE 31................................................................................41
         31.1     Notices.................................................................41
         31.2     Amendments and Modifications............................................43
         31.3     Successors and Assigns..................................................43
         31.4     Headings and Table of Contents..........................................43
         31.5     Counterparts............................................................43
         31.6     Governing Law...........................................................43
         31.7     Estoppel Certificates...................................................43
         31.8     Subordination and Attornment............................................43
         31.9     Lessee's Attornment Upon Foreclosure....................................44
         31.10    Submission To Jurisdiction; Waivers.....................................44
         31.11    Waivers of Jury Trial...................................................45
         31.12    Miscellaneous...........................................................45
         31.13    Memorandum of Lease.....................................................45
         31.14    Brokers.................................................................45

ARTICLE 32................................................................................46
         32.1     Options To Extend Term..................................................46
         32.2     Rent....................................................................46
         32.3     Fair Market Rent........................................................46

ARTICLE 33................................................................................47
         33.1     Contingencies...........................................................47
</TABLE>
<PAGE>   5
<TABLE>
<S>                                                                                       <C>
ARTICLE 34................................................................................48
         34.1     Fair Market Value Purchase Option.......................................48

ARTICLE 35................................................................................49
         35.1     Expansion Rights........................................................49

ARTICLE 36................................................................................50
         36.1     Cash Flow Distribution Agreement........................................50

ARTICLE 37................................................................................50
         37.1     First Source Agreement..................................................50

</TABLE>

<PAGE>   6


                                      LEASE


         LEASE (this "Lease") is dated as of the 13th day of May, 1999 (the
"Effective Date"), and is between WILL PARTNERS, LLC, a Delaware limited
liability company ("Lessor"), having an address at 3421 Manhattan Avenue,
Manhattan Beach, California 90266, and EKCO Housewares, Inc., a Delaware
corporation ("Lessee"), having its principal office at 9234 West Belmont Avenue,
Franklin Park, Illinois 60131-2808.


                                    ARTICLE 1

         1.1 Leased Property; Term. Upon and subject to the terms and conditions
hereinafter set forth, Lessor leases to Lessee and Lessee leases from Lessor all
of Lessor's rights and interest in and to the following property (collectively,
the "Leased Property"):

             (a) the plots, pieces or parcels of land (the "Land") described in
Exhibit A attached hereto, measuring in the aggregate approximately 1,258
linear feet by 2,010 linear feet;

             (b) all buildings (the building to be constructed by Lessor
consisting of approximately 700,200 square feet being hereinafter the
"Building"), structures, Fixtures and other improvements presently situated or
hereafter constructed upon the Land (collectively, the "Leased Improvements");

             (c) all easements, rights and appurtenances relating to the Land
and the Leased Improvements;

             (d) all equipment, machinery, fixtures and other items of
property, including all components thereof, now or hereafter located in or on,
and used in connection with the operation or maintenance of, the Leased
Improvements, which are now or hereafter owned by Lessor, including, without
limitation, all furnaces, boilers, heaters, electrical equipment, heating,
plumbing, ventilating, refrigerating, waste disposal, air-cooling and air
conditioning apparatus, sprinkler systems and fire and theft protection
equipment and which are hereby deemed by the parties hereto to constitute real
estate under the laws of the State, together with all replacements,
modifications, alterations and additions thereto, other than Lessee's Equipment,
as defined in Section 6.2 (collectively, the "Fixtures"); and

             (e) the furniture, equipment, trade fixtures, furnishings and
other items of personal property, if any, owned by Lessor (collectively, the
"Personal Property").

         Subsequent to the Substantial Completion Date (hereinafter defined),
Lessee shall have exclusive possession and control of the Leased Property,
subject, however, to the reservations and other matters, if any, of record
affecting the Property described in Exhibit A-1 and the completion by Lessor of
any Punchlist Items. The Term of this Lease shall commence upon the Substantial
Completion Date (hereinafter defined), and shall continue for a term of fifteen
(15) years

                                       1
<PAGE>   7


thereafter so as to end on the last calendar day of a month, plus an initial
partial month if the Substantial Completion Date does not occur on the first day
of a month unless extended or earlier terminated pursuant to and in accordance
with the provisions of this Lease (the "Term"). Notwithstanding the foregoing,
the terms of this Lease other than the following Articles shall be effective
upon the execution of the Lease by Lessor and Lessee: Articles 3 (except 3.1(a)
thereof), 4, 8, 9, 10, and except as to items caused by Lessee prior to the
Commencement Date, Articles 11, 12, 13, 14 and 21, which such Articles 14 and 21
shall be effective upon Tenant's possession of the Leased Property. If the
naturally occurring expiration date of the initial Term or any Extension Period
(as hereinafter defined) pursuant to the calculation set forth in this paragraph
would occur between the dates of June 1st and December 31st of any calendar
year, the expiration date of this Lease shall automatically be extended to the
next following January 31st. Upon the occurrence of the Rent Commencement Date,
either party shall, upon the written request of the other, enter into an
agreement setting forth the commencement and expiration dates of the Term.

                                    ARTICLE 2

         2.1 Definitions and Certain Dispute Resolution Procedures. As used in
this Lease, (a) unless otherwise specified, all references to Sections and
articles shall refer to Sections or articles of this Lease, (b) all terms
defined herein in the singular shall have the same meanings when used in the
plural and vice versa, and (c) capitalized terms shall have the respective
meanings set forth in this Lease.

         "Actual Leaseable Area of Building": The leaseable area of the
Building determined pursuant to Section 3.1.

         "Additional Rent":  As defined in Section 3.2.

         "Alterations":  As defined in Section 10.1.

         "Basic Rent":  As defined in Section 3.1.

         "Business Day": Each Monday, Tuesday, Wednesday, Thursday and Friday
which is not a day on which national banks in the City of New York, State of New
York are authorized, or obligated, by law or executive order to close.

         "Commencement Date": Shall mean the Substantial Completion Date.

         "Consolidated Tangible Net Worth": The consolidated net worth of any
Person less the sum of the following consolidated items: (a) any surplus
resulting from any write-up of assets; (b) goodwill, including any amounts
(however designated on the balance sheet of such Person) representing the cost
of acquisitions of Subsidiaries in excess of underlying tangible assets, unless
an appraisal of such assets made by a firm of nationally recognized appraisers
acquisition shall indicate sufficient value to cover such excess; (c) patents,
trademarks, copyrights, leasehold improvements not recoverable at the expiration
of a lease and deferred charges (including, but not

                                       2
<PAGE>   8


limited to, unamortized debt discount and expense, organization expenses,
experimental and development expenses, but excluding prepaid expenses and
prepaid taxes); (d) any amounts at which shares of capital stock of such Person
appear on the asset side of the balance sheet of such Person; and (e) any amount
of indebtedness not included in the computation of the consolidated net worth of
such Person.

         "Construction Dispute Arbitrator": Shall mean Architectural
Consultants, Inc., Mt. Prospect, Illinois.

         "Construction Dispute Arbitrator Procedure": The Construction Dispute
Arbitrator shall be instructed to resolve the dispute within forty-eight (48)
hours of receipt of notification thereof. The decision of the Construction
Dispute Arbitrator shall be final, binding and conclusive upon Lessor, Lessor's
contractor and Lessee as is applicable to the matter at hand, absent fraud or
manifest error. Any fees or costs of the Construction Dispute Arbitrator shall
be split equally between Lessor and Lessee unless the Construction Dispute
Arbitrator shall deem the conduct of either party (or their respective agents)
unreasonable, in which event, such costs shall be paid by the party deemed to be
acting unreasonably. The Construction Dispute Arbitrator shall have the power to
award appropriate extensions of time (including with respect to the Substantial
Completion Date and the Outside Completion Date) if the Construction Dispute
Arbitrator determines that Lessee (or its agents) has acted unreasonably.

         "Environmental Laws": Means any and all present and future federal,
state and local laws, ordinances, and regulations, policies and any other
requirements of any governmental agency relating to health, safety, the
environment or to any Hazardous Materials (hereinafter defined), including
without limitation, the Comprehensive Environmental Response, Compensation, and
Liability Act of 1980 (CERCLA), the Resource Conservation Recovery Act (RCRA),
the Hazardous Materials Transportation Act, the Toxic Substance Control Act, the
Clean Water Act, the Occupational Safety and Health Act (to the extent said Act
may contain requirements relating to Hazardous Materials), and the Illinois
Responsible Property Transfer Act, each as hereafter amended from time to time,
and the present and further rules, and regulations and guidance documents
promulgated under any of the foregoing by any federal, state or local
governmental authority having jurisdiction over the Leased Property.

         "Environmental Report": That certain environmental audit report for the
Leased Property entitled "Phase I Environmental Assessment," dated March 4,
1999, prepared by Carlson Environmental, Inc.

         "Event of Default":  As defined in Section 17.1.

         "Fair Market Rent":  As defined in Section 32.2.

         "Fair Market Value":  As defined in Section 15.4.

         "First Source Agreement": As defined in Article 37.


                                       3
<PAGE>   9


         "Fixtures":  As defined in Section 1.1.

         "Guarantor":  EKCO Group, Inc. a Delaware corporation.

         "Hazardous Materials": Any flammable explosives, radioactive materials,
hazardous materials, hazardous wastes, hazardous or toxic substances, asbestos
or any material containing asbestos, or any other substance or material, the
use, treatment, storage or disposal of which is regulated under any
Environmental Laws.

         "Impositions": All taxes (including, without limitation, all ad
valorem, sales and use, single business, gross receipts, transaction privilege
or similar taxes), assessments (including, without limitation, all assessments
for public improvements or benefits, whether or not to be completed within the
Term), water, sewer or other rents and charges, excises, levies, fees
(including, without limitation, license, permit, inspection, authorization and
similar fees), and all other governmental and quasi-governmental charges in each
case whether general or special, ordinary or extraordinary, or foreseen or
unforeseen, of every character in respect of the Leased Property and/or the
Basic Rent or Additional Rent (including all interest and penalties thereon),
which may be assessed or imposed on or in respect of or be a lien upon (a)
Lessor or Lessor's Assignees, if any, (b) the Leased Property or any part
thereof or any rent therefrom or any estate, right, title or interest therein,
or (c) any occupancy, operation, use or possession of, or sales from, or
activity conducted on, or in connection with, the Leased Property or the leasing
or use of the Leased Property or any part thereof, or the acquisition of the
Leased Property by Lessor, to the extent any of the foregoing are attributable
to the period constituting the Term of this Lease. Except as otherwise provided
in Article 4, nothing contained in this Lease shall be construed to require
Lessee to pay any tax, assessment, levy or charge imposed on Lessor or Lessor's
Assignees, if any, for the privilege of doing business in the State specifically
as a corporation or other business entity, or any capital levy, estate,
inheritance, succession, transfer, net income or net revenue tax of Lessor or
Lessor's Assignees, if any; or any tax, assessment, levy, imposition or charge
based on the gross income or gross rents received therefrom from Lessee whether
or not wholly or partially as a capital levy or otherwise which is calculated
without deduction of any portion of such gross income or gross rents so
received; or (b) a license fee measured by the gross rents received from Lessee
which is calculated without deduction of any portion of such gross rents so
received; or (c) any other tax, assessment, levy, imposition, charge or license
fee however described or imposed whether imposed upon Lessor or Lessor's
Assignee. Notwithstanding anything herein to the contrary, if at any time after
the date hereof, a tax is imposed on the Indenture, which the holder thereof
looks to the Lessor to pay, such tax shall be paid by Lessee to the extent such
is calculated as if the Leased Property is the only asset of Lessor or the
property which is subject to the Indenture. Notwithstanding the foregoing,
Impositions shall not include special assessments, if any, in connection with
the initial development of the Leased Property, or any such special assessments
levied as a result of design or construction errors, omissions or deficiencies
in the improvements installed in connection with the initial development of the
Leased Property and the surrounding area (the "Corrective Special Assessments").

         "Indenture":  Any mortgage, deed of trust or deed to secure debt,
as applicable,

                                       4
<PAGE>   10

constituting a lien on the Leased Property as the same may be modified, amended
or supplemented from time to time, which may be executed as security for any
indebtedness of the Lessor.

         "Insurance Requirements": All material terms of any insurance policy
required by this Lease or applicable to the Leased Property, all requirements of
the issuer of any such policy, and all regulations and then current standards
applicable to or affecting the Leased Property or any use or condition thereof,
which may, at any time, be recommended and published (or otherwise be in
writing) by either (a) the Board of Fire Underwriters, if any, having
jurisdiction over the Leased Property or (b) the Factory Mutual System (or any
other body exercising similar functions). For purposes hereof, "material" shall
mean that a violation of such term would void, invalidate, or reduce the
coverage contemplated by the policy in question.

         "Insured Property":  As defined in Section 14.1.

         "Land":  As defined in Section 1.1.

         "Leased Improvements":  As defined in Section 1.1.

         "Leased Property":  As defined in Section 1.1.

         "Lease Year": A twelve (12) month period commencing on the Commencement
Date or on an annual anniversary date thereof, as the case may be.

         "Legal Requirements": All federal, state, county, municipal and other
governmental statutes, laws, rules, orders, regulations, ordinances, judgments,
decrees and injunctions affecting either the Leased Property or the
construction, use or alteration thereof, whether now or hereafter enacted and in
force, including any which may (a) require repairs, modifications or alterations
in or to the Leased Property or (b) in any way limit the use and enjoyment
thereof, and all permits, licenses and authorizations and regulations relating
thereto, and all covenants, agreements, restrictions and encumbrances contained
in any instruments, either of record or known to Lessee to the extent such
agreements, restrictions and encumbrances are created by the acts of Lessee, at
any time in force affecting the Leased Property or private covenants and
restrictions of record which are either set forth in Exhibit F or which are
approved by Lessee in writing after the date hereof.

         "Lessee Delays":  As defined in Section 7.1.

         "Lessee's Equipment":  As defined in Section 6.2.

         "Lessor's Assignees": Collectively, any assignees now or hereafter
designated in any collateral assignment of Lessor's interest in this Lease as
additional security for any indebtedness of Lessor also secured by an Indenture.

         "Offset and Recapture Procedure": As defined in Section 3.4.


                                       5
<PAGE>   11


         "Officer's Certificate": A certificate of Lessee or Lessor signed by
the president or any vice president or the treasurer, or another officer, the
managing member or other similar person authorized to so sign by the board of
directors, bylaws or other governing instruments of Lessee or Lessor.

         "Outside Completion Date": December 31, 2000, said date to be extended
by the total aggregate length of any Lessee Delays (as defined in Section 7.1).

         "Overdue Rate": A late charge in an amount equal to five percent (5%)
of the amount that is then due, plus interest on the amount then due equal to
the annual interest rate being equal to the interest rate set forth in the then
applicable Indenture (the "Indenture Rate") plus five percent (5%) per annum; or
such rate as is permitted by law, if less. In the event there is at the time no
Indenture Rate, such term shall mean eight percent (8%) per annum.

         "Payment Date":  Any due date for the payment of the installments of
Basic Rent.

         "Permitted Use": Warehousing, assembly, packaging, processing, light
manufacturing, distribution, and services and office uses ancillary thereto, as
permitted by the applicable zoning code and any amendments thereto.

         "Person": Any individual, corporation, partnership, joint venture,
estate, trust, unincorporated association, limited liability company, any
federal, state, county or municipal government, or any bureau, department or
agency thereof, and any fiduciary acting in such capacity on behalf of any of
the foregoing.

         "Redevelopment Agreement": The agreement between Lessor and the Village
and other ancillary agreements substantially in the form of Exhibit C.

         "Rent":  Collectively, the Basic Rent and Additional Rent.

         "Rent Commencement Date":  As defined in Section 3.1.

         "State":  The State of Illinois.

         "Subsidiary": (a) Any corporation more than fifty percent (50.0%) of
whose voting stock is owned or controlled, directly or indirectly, by such
entity or one or more other Subsidiaries of such entity, or (b) any limited
partnership of which such entity or any of its Subsidiaries is a general
partner, or (c) any other entity (other than a corporation) in which such entity
or one or more other Subsidiaries of such entity, or such entity and one or more
other Subsidiaries of such entity, directly or indirectly, owns more than fifty
percent (50.0%) of the outstanding capital stock or has the power, through the
ownership or voting stock, by contract or otherwise, to direct or cause the
direction of the management and policies of such entity.

         "Substantial Completion Date":  As defined in Section 7.1.


                                       6
<PAGE>   12

         "Taking": A taking or voluntary conveyance during the Term hereof of
all or part of the Leased Property, or any interest therein or right accruing
thereto or use thereof, as the result of, or in settlement of any condemnation
or other eminent domain proceeding affecting the Leased Property whether or not
a formal condemnation or other eminent domain shall have actually been commenced
if a voluntary conveyance occurs under threat of such proceeding.

         "Taking-Termination Date":  As defined in Section 15.3.

         "Taking-Termination Notice":  As defined in Section 15.3.

         "Term":  As defined in Section 1.1.

         "Unavoidable Delays": Delays due to strikes, lockouts, inability to
procure materials, power failure, acts of God, governmental restrictions, enemy
action, civil commotion, fire, unavoidable casualty or other causes beyond the
control of Lessor or Lessee, provided that lack of funds regardless of the cause
therefor shall not be deemed a cause beyond the control of either party, except
as expressly set forth herein.

         "Village": The Village of Monee, Will County, Illinois.


                                    ARTICLE 3

         3.1 Basic Rent. Except as provided in Article 7, Lessee will pay to
Lessor commencing on the Substantial Completion Date (which date shall also be
deemed to the "Rent Commencement Date"), in lawful money of the United States of
America which shall be legal tender for the payment of public and private debts
at Lessor's address set forth above or at such other place or to such other
Persons as Lessor from time to time may designate in writing upon fifteen (15)
days prior written notice to Lessee, a net rental (the "Basic Rent") in advance
during the Term, as follows:

<TABLE>
<CAPTION>
<S>                                                <C>             <C>             <C>
                                                                                   Basic Rent
                                                                                   Square Foot of
                                                                                   the Actual
                                                                                   Leaseable
                                                   Basic Rent/     Basic Rent/     Area of the
Period                                             Month           Annum           Building
----------------------------------------------     -----------     -----------     --------------
Rent Commencement Date - end of the 12th full
calendar month                                     $207,500.00     $2,490,000.00        $3.56
13th through 24th full calendar month               211,666.67      2,540,000.00         3.63
25th through 60th full calendar month               215,833.33      2,590,000.00         3.70
61st through 120th full calendar month              242,500.00      2,910,000.00         4.16
121st through 180th full calendar month             272,916.67      3,275,000.00         4.68
</TABLE>


                                       7


<PAGE>   13

         (a) Remeasurement. At such time as the location for the foundation for
the Building has been surveyed and marked prior to construction thereof, Lessor
and Lessee shall agree upon a measurement standard and shall jointly measure the
floor area of the Building. At the time the foundation for the Building has been
constructed Lessee may request that Lessor and Lessee jointly remeasure the
floor area of the Building. If either such determination shall yield amount that
is greater than 693,198 square feet of leasable area, then there shall be no
adjustment to the Basic Rent. If the determination shall yield an amount that is
less than 693,198 square feet but more than 665,190 square feet of leasable
area, then the Basic Rent shall be adjusted accordingly. Notwithstanding
anything to the contrary contained herein, in the event such determination shall
yield an amount of leasable area that is 665,190 square feet or less, Lessor
shall, within thirty (30) days ("Correction Period") cause its general
contractor to expand the leasable area to achieve a building area of at least
665,190 square feet. If Lessor fails to so cause the expansion of the building
area to at least 665,190 square feet, then Lessee shall have the option to elect
to terminate this Lease to be exercised by written notice to Lessor given within
ten (10) business days after the expiration of the Correction Period. In the
event of any dispute between Lessor and Lessee as to the leasable area of the
Building, the matter shall be submitted to the Construction Dispute Arbitrator
for resolution. The area of the Building determined pursuant to this Section
3.1(a) is the "Actual Leaseable Area of the Building".

         (b) When Due. If the Rent Commencement Date is not on the first day of
a month, the Basic Rent for the first month of the Lease Term shall be prorated
accordingly. The proportionately reduced Basic Rent, if applicable, for any
partial first month of the Lease Term shall be paid within fifteen (15) days
after the Rent Commencement Date.

         (c) Payment Method. Lessee agrees to wire federal or other immediately
available funds in payment of the Basic Rent to Lessor, or as Lessor may direct
in writing, on the day each payment is due, or if such day is not a Business Day
then on the Business Day following such date, so that Lessor shall receive
immediately available funds in such location as Lessor may designate on each
such date. Lessee may pay Basic Rent by check only if permitted by Lessor's
Assignees. Except as provided in this Lease, the Basic Rent shall be paid
absolutely net to Lessor, so that this Lease shall yield to Lessor the full
amount of the installments of Basic Rent throughout the Term, all as more fully
set forth in this Lease.

         3.2 Additional Rent. Except as provided in this Lease, in addition to
the Basic Rent, commencing on the Rent Commencement Date, Lessee will also pay
and discharge as additional rent (collectively, the "Additional Rent") all other
amounts, liabilities, obligations and, all Impositions which Lessee assumes or
agrees to pay under this Lease, and in the event of any failure on the part of
Lessee to pay any of the foregoing, every fine, penalty, interest and cost which
may be added for nonpayment or late payment of the Impositions, and Lessor shall
have all legal, equitable and contractual rights, powers and remedies provided
either in this Lease or by statute or otherwise as in the case of non-payment of
the Basic Rent.

         3.3 Late Payment.  If any installment of Basic Rent shall not be paid
on or before its due date and Lessee fails to pay the amount due for five (5)
days after receipt by Lessee of written

                                       8


<PAGE>   14

notice of such failure, and to the extent Lessor pays any other Additional Rent
that Lessee has so failed to pay, Lessee will pay Lessor on demand, as
Additional Rent, interest on such overdue amount computed at the Overdue Rate on
the amount of such installment, from the due date of such installment to the
date of payment thereof.

         3.4 Offset and Recapture Procedure. Any payment, cost or amount due
Lessee pursuant to Sections 4.6, 7.1, 7.6, 8.2 and 36.1 hereof not paid when
due, such being the "Offset Amount," may be offset or recaptured, together with
interest thereon at the Overdue Rate, against that portion of the then current
Basic Monthly Rent next coming due which is equal to the following:

         PERIOD                                        Amount per Annum
         ------                                        ----------------
         Rent Commencement Date through
         end of the 12th full calendar month              $634,470.00
         13th through 24th full calendar month            $684,470.00
         25th through 60th full calendar month            $734,470.00
         61st through 120th full calendar month         $1,054,470.00
         121st through 180th full calendar month        $1,419,470.00


         If, at the expiration of the Term (as the same may be extended), Lessee
has not fully recovered any Offset Amount, then Lessor shall, on or before said
date, reimburse Lessee for the unrecovered amounts due Lessee pursuant to the
provisions of this Lease. The obligation set forth in this Section shall
specifically be binding on successors and assigns of the Lessor and shall run
with the Land and this Lease shall constitute a lien on the Leased Property
subordinate to the Indenture until any unrecovered Offset Amount is paid in
full. In the event Lessee purchases the Leased Property, then the amount of the
unrecovered Offset Amount shall be a credit to Lessee against the purchase
price.

         This Section 3.4 is deemed to be the Offset and Recapture Procedure.


                                    ARTICLE 4

         4.1 Payment of Impositions. Subject to Section 13.1 relating to
permitted contests, Lessee will pay, or cause to be paid, all Impositions before
any fine, penalty, interest or cost may be added for non-payment, such payments
to be made directly to the taxing authorities where feasible, and will promptly
furnish to Lessor and Lessor's Assignees, if any, copies of official receipts or
other satisfactory proof evidencing such payments, and upon request, shall
provide Lessor's Assignees with periodic status reports as to all such payments
in respect of the Leased Property. If any Imposition may, at the option of the
taxpayer, lawfully be paid in installments (whether or not interest shall accrue
on the unpaid balance of such Imposition), Lessee may exercise the option to pay
the same (and any accrued interest on the unpaid balance of such Imposition) in
the maximum number of installments permitted by law and in such event, shall pay


                                       9
<PAGE>   15

only such installments attributable to the period of the Term hereof as the same
respectively become due and before any fine, penalty, premium, further interest
or cost may be added thereto. If any assessment for a public improvement is
required to be paid in one lump sum payment, Lessee shall pay such lump sum
payment provided, however, Lessor shall use its best efforts to cause payments
for assessments to be made in installments over the longest period permitted by
law. Lessee, at its expense, shall prepare and, to the extent it may legally do
so, file all tax returns and reports in respect of any Imposition as may be
required by governmental authorities. All bills for general real estate taxes
and assessments shall be directed to Lessee. Lessee shall have the authority to
negotiate with the taxing authority as to the term over which any special
assessments are paid (excluding the benefits provided to Lessor pursuant to the
Redevelopment Agreement), which Lessor acknowledges may be over the longest
period permitted by law. Lessee shall be responsible only for the installments
of such assessments attributable to the period of the Term. If any refund shall
be due from any taxing authority in respect of any Imposition paid by Lessee,
the same shall be retained by Lessee. The provisions of this Section 4.1 shall
survive termination of this Lease.

         4.2 Notice of Impositions. Lessor shall give prompt notice to Lessee of
all Impositions payable by Lessee hereunder of which Lessor at any time has
knowledge other than general ad valorem real estate taxes (or substitutes
therefor). Lessor's failure to give any such notice shall in no way diminish
Lessee's obligations hereunder unless Lessee has not otherwise received actual
notice thereof.

         4.3 Adjustment of Impositions. Impositions imposed in respect of the
calendar year period during which the Term terminates shall be adjusted and
prorated between Lessor and Lessee, whether or not such Imposition is imposed
before or after such termination (to the extent the Imposition applies to any
period during the Lease Term), and Lessee's obligation to pay its prorated share
thereof shall survive such termination. The foregoing shall not limit Lessor's
damages in the event such termination is by reason of an Event of Default by
Lessee.

         4.4 Utility Charges. Lessee will pay or cause to be paid when due all
charges for electricity, power, gas, oil, water and other utilities used in
connection with the Leased Property.

         4.5 Insurance Premiums. Lessee will pay or cause to be paid all
premiums for the insurance coverage required to be maintained pursuant to
Section 14.1.

         4.6 Limitation on Impositions. Notwithstanding the provisions of this
Article 4:


             1. Lessor agrees that ad valorem general real estate taxes for
the Leased Property payable by Lessee during the initial year the Leased
Property is fully assessed will be forty-five cents ($.45) per square foot of
the Actual Leaseable Area of the Building (the "Estimated Tax Amount"). The
Estimated Tax Amount shall cumulatively increase by an amount equal to two and
one percent (2.5%) per annum (each such cumulatively increased tax amount being
hereinafter an "Escalated Tax Amount") through July 13, 2017. The terms
"Estimated Tax Amount" and "Escalated Tax Amount" shall be deemed to include any
taxes enacted in lieu of

                                       10
<PAGE>   16

or as substitutes for general ad valorem real estate taxes other than taxes on
Lessor's Indenture unless imposed uniformly throughout the State.

             2. Lessor and Lessee agree that if, during the period ending
July 13, 2017, the actual ad valorem general real estate taxes ("Actual Taxes")
for the Leased Property attributable to the initial year of full assessment
exceed the Estimated Tax Amount, or if any Actual Taxes for any subsequent tax
year exceed the Escalated Tax Amount applicable to the year in question or if
there is imposed any Corrective Special Assessment (such excess in each case
being hereinafter an "Excess Amount") then Lessee shall deliver written notice
of the same to Lessor, together with copies of applicable tax bill(s) and the
following shall apply:

                (a) Lessee shall not be liable for any Actual Taxes which
exceed the Estimated Tax Amount, or the applicable Escalated Tax Amount, as the
case may be;

                (b) Notwithstanding the foregoing, Lessee shall pay or cause to
be paid any Excess Amount prior to accrual of any interest or penalty thereon
and Lessor shall reimburse Lessee for the same as provided in subsection (c)
below;

                (c) Upon the payment of any Excess Amount, Lessee shall deliver
an invoice and evidence of payment therefor to Lessor and Lessor shall reimburse
Lessee for the Excess Amount, together with interest at the rate of five percent
(5%) per annum from the date paid by Lessee until reimbursed to Lessee, which
reimbursement shall be paid to Lessee by no later than December 1st in the year
that Lessee delivers such invoice and evidence. Upon reimbursement to Lessee of
the Excess Amount, Lessee shall be deemed to have assigned to Lessor all right,
title and interest in and to any refunds or other recovery against the Village
with respect to the Excess Amount reimbursed by Lessor to Lessee. Upon
reimbursement to Lessee, Lessee shall execute such reasonable confirmations of
the foregoing assignment as Lessor may request within thirty (30) days after
written request therefor. If Lessor enters into the Redevelopment Agreement,
then Lessor shall have the right, at Lessor's sole cost and expense, at any time
thereafter, to pursue the enforcement of the provisions of the Redevelopment
Agreement to the extent of the Excess Amount reimbursed to Lessee, including,
without limitation, any protesting of the Taxes necessary to cause the Actual
Taxes to be reduced to either the Estimated or Escalated Tax Amounts, as the
case may be, for the year in question, or to such lower amounts as may permit
recovery of the Excess Amount to Lessor. (Notwithstanding anything contained in
this Lease to the contrary, however, Lessee acknowledges that Taxes cannot be
contested without compliance with the conditions set forth in the Redevelopment
Agreement).

                (d) If Lessor fails to reimburse Lessee within the time
provided in subsection (c) above, Lessee shall have the right to offset the
Excess Amount pursuant to the Offset and Recapture Procedure.

             3. The provisions of this Section 4.6 apply only to the amount
of general ad valorem real estate taxes or taxes enacted in lieu of, or
substitutes for, general ad valorem taxes, including any increases attributable
to a sale of Lessor's interest in the Leased Property, and are

                                       11
<PAGE>   17

not applicable to any increase in the amount of Impositions hereunder due to
special assessments which may be levied or assessed against the Leased Property
(provided that in no event shall Lessee be liable for special assessments levied
in connection with initial development of the Leased Property except to the
extent specifically provided in the Redevelopment Agreement as reimbursement of
the tax increment financing contemplated thereunder) or Corrective Special
Assessments.


                                    ARTICLE 5

         5.1 No Termination, Abatement, etc. Except as otherwise specifically
provided herein, Lessee shall remain bound by this Lease in accordance with its
terms and shall neither take any legal action to modify, surrender or terminate
the same, nor seek nor be entitled to any abatement, deduction, deferment or
reduction of Rent, or set-off against the Rent, nor shall the respective
obligations of Lessor and Lessee be otherwise affected by reason of (a) any
damage to, or destruction of, the Leased Property or any portion thereof from
whatever cause except for the grossly negligent acts or omissions or willful
misconduct of Lessor or Lessor's Assignees, or any Taking of the Leased Property
or any portion thereof, (b) the lawful or unlawful prohibition of, or
restriction upon, Lessee's use of the Leased Property or any portion thereof,
the interference with such use by any Person or by reason of any eviction by
paramount title, or any other defect in title, (c) any claim which Lessee has or
might have against Lessor or against any of Lessor's Assignees, if any, or by
reason of any default or breach of any warranty by Lessor under this Lease, any
other agreement between Lessor and Lessee, or to which Lessor and Lessee are
parties, (d) any bankruptcy, insolvency, reorganization, composition,
readjustment, liquidation, dissolution, winding up or other proceedings
affecting Lessor or any assignee or transferee of Lessor, or any action with
respect to this Lease that may be taken by a trustee or receiver of Lessor or
any assignee of Lessor or by any court in any such proceeding, unless such
action judicially terminates the Lease, or (e) for any other cause whether
similar or dissimilar to any of the foregoing. Except as otherwise specifically
provided herein, Lessee hereby specifically waives all rights, arising from any
occurrence whatsoever, which may now or hereafter be available to Lessee by law
or in equity to (i) modify, surrender or terminate this Lease or quit or
surrender the Leased Property or any portion thereof, or (ii) entitle Lessee to
any abatement, reduction, suspension or deferment of the Rent or other sums
payable by Lessee hereunder, except as otherwise specifically provided in this
Lease. The obligations of Lessor and Lessee hereunder shall be separate and
independent covenants and agreements and the net Basic Rent and Additional Rent
and all other sums payable by Lessee hereunder shall continue to be payable in
all events unless the obligations to pay the same shall be terminated, or
modified, pursuant to the express provisions of this Lease.



                                       12
<PAGE>   18

                                    ARTICLE 6

         6.1 Ownership of the Leased Property. Lessee and Lessor agree that the
Leased Property (and upon completion, all additions, alterations and
improvements thereto) is the property of Lessor and that Lessee has only the
right to exclusive possession, control, and use of the Leased Property upon the
terms and conditions of this Lease.

         6.2 Lessee's Equipment. Lessee may, at its expense, install or assemble
or place on the Land or in the Leased Improvements, and remove and substitute,
any items of machinery, equipment, furnishings or trade fixtures or other
personal property owned by Lessee and used or useful in Lessee's business
(collectively, "Lessee's Equipment"), and Lessee shall remove the same upon the
expiration or prior termination of the Term; provided, however, that Lessee
shall have no right to remove any item which constitutes a Fixture. All Lessee's
Equipment shall be and remain the property of Lessee (Lessor hereby disclaiming
any contractual or statutory lien with respect to the same), provided that any
of Lessee's Equipment not removed by Lessee upon the expiration or earlier
termination of this Lease shall be considered abandoned by Lessee and may be
appropriated, sold, destroyed or otherwise disposed of by Lessor without first
giving notice thereof to Lessee and without obligation to account therefor. All
reasonable costs and expenses incurred in removing, storing and disposing of
Lessee's Equipment shall be paid by Lessee. Lessee will repair, at its expense,
all damage to the Leased Property caused by the removal of Lessee's Equipment,
whether effected by Lessee or Lessor. Lessor shall not be responsible for any
loss or damage to Lessee's Equipment.


                                    ARTICLE 7


         7.1 (a) Lessor's Work. Lessor shall, at its expense, construct the
Premises in conformance, in all material respects of the plans and
specifications to be prepared by Steve Rankin & Associates, incorporating in
such construction all work described in, and in compliance with, Exhibit E and
Exhibit H attached hereto ("Lessor's Work"). All Lessor's Work shall be
performed in a good and workmanlike manner using new materials, and in
compliance with the building permit therefor and Legal Requirements applicable
as of the date of performance, to the extent the same apply thereto. Lessee, by
its execution hereof, hereby approves Kiferbaum Construction Corporation and the
architectural plans (which are part of Lessor's Plans [hereinafter defined])
attached hereto as Exhibit H.

             As soon as reasonably possible after the closing of Lessor's
acquisition of the Land, but in any event, within sixty (60) days thereafter,
Lessor shall cause detailed plans and specifications to be prepared for Lessor's
Work consistent with Exhibit E and Exhibit H hereto ("Lessor's Plans"). Upon
completion, Lessor shall deliver Lessor's Plans to Lessee for approval. Within
six (6) business days of Lessee's receipt of Lessor's Plans, Lessee shall notify
Lessor of its desired improvements for the office area portion of the Building
(Lessee hereby acknowledging that maximum cost to Lessor for such office area
improvements is $400,000.00) and any failure of Lessor's Plans to meet with
Lessee's approval. As to any failure of Lessor's plans to meet with


                                       13
<PAGE>   19


Lessee's approval, Lessee's notice shall specify in detail the nature of the
proposed failure and Lessee's specific suggestions to resolve such failure.
Lessor shall cause Lessor's Plans to be revised to remedy such failure and to
reflect the office area improvements and shall resubmit the same to Lessee for
final approval, which review and approval shall occur within six (6) business
days. Failure to respond by Lessee within the times set forth herein shall be
deemed an approval of such plans by Lessee.

             Upon Lessee's final approval, which approval shall not be
unreasonably withheld, delayed or conditioned, or deemed approval, Lessor's
Plans shall be deemed approved and attached as part of Exhibit H to this Lease,
and all cost and expense of any subsequent changes, addition, or deletions from
such approved Lessor's Plans requested by Lessee ("Change Orders") shall be paid
by Lessee, at Lessee's sole cost and expense. Lessee agrees upon written
direction and approval of Lessor to pay to Lessor's contractor the cost
(including additional construction interest and/or extension fees required due
to such Change Orders) with respect to all Change Orders. Within fifteen (15)
days following the close of each month during which any work was performed
pursuant to a Change Order, Lessor shall deliver to Lessee (i) an invoice for
the portion of the Change Order work performed during the preceding month
together with Lessor's approval of disbursement of the payment for such work by
Lessee, (ii) Lessor's architect's certification that such work has been
performed in compliance with the plans therefor, if any, or otherwise in keeping
with the standards for Lessor's Work, and (iii) acknowledgment by Lessor that
all appropriate lien waivers have been delivered to Lessor and/or Lessor's
Assignees pertaining to such work. Provided that Lessee approves the work as
having been properly performed (which if Lessee does not approve shall be
referred to the Construction Dispute Arbitrator), Lessee within ten (10) days
after receipt of the foregoing, shall deposit the funds to pay for that portion
of the work so completed pursuant to the Change Order with either Lessor's
Assignees or as such Lessor's Assignees otherwise direct (i.e. to a title
insurance company that is insuring the lien free construction of the Building).
If the Construction Dispute Arbitrator does not provide a determination as to
the work performed pursuant to the Change Order that Lessee believes was not
properly performed prior to the expiration of the foregoing ten (10) day period,
then Lessee shall deposit the funds to pay for that portion of the work that is
the subject of the invoice with the Lessor's Assignee to be held pending the
resolution of such matter. All Change Orders shall specifically state whether
the Change Order (i) will require any extension of the Substantial Completion
Date of the Lessor's Work and if so, (ii) the permissible amount of such
extension as agreed upon between Lessor's contractor and Lessee. The Change
Order shall establish the approval of Lessee and Lessor's contractor as to the
equivalent delay, if any, in the date upon which the sums described in Section
7.6 hereof shall become due and payable to Lessee and the extension of the
Substantial Completion Date and the Outside Completion Date.

         Any net savings resulting from a Change Order shall be applied to other
Lessee requested Change Orders or to the extent the full Four Hundred Thousand
and No/100 Dollars ($400,000.00) is not expended for the Office Area
Improvements and is not otherwise used by Lessee through Change Orders, such
remaining amount shall be paid to Lessee within thirty (30) days after the
Substantial Completion Date. All Change Orders shall be entered into by Lessor
subject to the approval of Lessee. If the net savings is not timely paid, Lessee
may offset the amount due pursuant to the Offset and Recapture Procedure.


                                       14
<PAGE>   20

         Lessor shall cause Lessee to be named as an additional insured on
Lessor's general contractor's builder's risk insurance policy, and shall cause
its contractor to maintain such builder's risk coverage in effect until Lessee
accepts possession of the Building and thereafter Lessee shall be named as an
additional insured on contractor general liability policy.

         (b) Construction of Building. As soon as possible after the acquisition
of the Real Estate, Lessor shall commence or cause the commencement of
construction of Lessor's Work. Lessor's Work shall be diligently pursued in
order to have the date of Substantial Completion of the Lessor's Work occur on
or before the Outside Completion Date. Lessor shall diligently prosecute
construction and will employ reasonable business efforts to cause Substantial
Completion of the Lessor's Work, as that term is hereinafter defined, to be
achieved, provided however, the parties agree that such date is not a
requirement, representation or warranty, but merely a date by which Lessor shall
use all reasonable efforts to meet and should such date not be met, such failure
shall not be a default hereunder if, prior to that date, Lessor has been
diligently prosecuting Substantial Completion of the Lessor's Work. If
construction is delayed because of Lessee's unreasonable withholding,
conditioning or delaying of consent pursuant to Section 7.1 or 7.4, interference
with or delay of Lessor's Work as a direct result of Lessee simultaneously
performing Lessee's Work (as contemplated in subsection 7.1(c) below), failure
to approve or comment, as appropriate, on Lessor's Plans within the time set
forth in Section 7.1(a), or due to Change Orders requested by Lessee ("Lessee
Delays"), or for a Force Majeure Event, as hereinafter defined, the Outside
Completion Date shall be extended for the amount of time Lessor is so delayed,
and Lessor shall have no liability by reason thereof except as provided in
Section 7.6 hereof. Lessee shall have the right to have a designated
representative on the Leased Property during the performance of Lessor's Work at
Lessee's sole risk and expense, provided that such representative shall not
interfere with, or delay, the completion of the Leased Premises. Notwithstanding
the foregoing, Lessee's designated representative shall have the right to notify
Lessor of any defects in the work being performed by Lessor's contractors or
subcontractors or material supplied by materialmen which could result in a
reduction of the quality of the construction of the Leased Improvements or
material deviation from the Lessor's Plans (other than Lessee's Change Orders)
and requiring that Lessor's contractor cease the Lessor's Work in question. Any
such notification shall be sent by facsimile to Lessor and a written notice to
Lessor sent the same day by overnight delivery providing for a receipt. Lessor,
upon receipt of such notice, shall promptly remedy the problem described in such
notice to the reasonable satisfaction of Lessee. If Lessor, Lessee and Lessee's
contractor have not resolved the dispute within twenty-four (24) hours of
Lessee's initial facsimile notice to Lessor, the parties shall immediately
notify and refer the dispute to the Construction Dispute Arbitrator. If Lessor
is required to repair, replace or correct any item by the decision of the
Construction Dispute Arbitrator the Outside Completion Date shall not be
affected or changed because of any delay occasioned by this procedure and if
such items are not repaired, replaced or corrected pursuant to Construction
Dispute Arbitrator's recommendation on or before the date set for completion of
the Punchlist Items, then Lessee shall be automatically deemed to have
disclaimed any further responsibility for such item to the extent of the defects
and Lessor shall be solely responsible therefor during the Term ("Disclaimed
Lessor's Work").


                                       15
<PAGE>   21


         (c) Substantial Completion. As used herein, "Substantial Completion of
the Lessor's Work" shall be as so determined by the Lessor's architect, in the
exercise of its reasonable professional judgment; provided that such date may
only be ("Substantial Completion Date") upon which (i) the Lessor's Work
conforms in all material respects to the Plans and Specifications attached as
Exhibit E and Exhibit H; (ii) Lessor has obtained a final Certificate of
Occupancy (the "C.O.") for the Lessor's Work subject to Section 7.2 hereof;
(iii) Lessor has completed all exterior driveways, loading docks and parking
areas and the Building is available for the use intended to be made thereof by
the Lessee; (iv) Lessor has assigned to Lessee, in writing, all warranties for
Lessor's Work subject to a collateral assignment to Lessor's Assignee and with
the exception of the one (1) year warranty from Lessor's contractor; such
written assignments shall contain the written consent and acknowledgment of the
applicable contractor/warrantor to such assignment if required by the terms
thereof; and (v) all access roads to the Leased Property have been completed.
Substantial Completion shall be deemed to have occurred only if the remaining
items of Lessor's Work are so-called "punchlist" items, which do not materially
interfere with Lessee's use and uninterrupted occupancy of the Building for the
conduct of its business or which Lessee agrees that by their nature completion
should be deferred to a later date (such as landscaping until the Spring
planting season or the final coat of asphalt for the paved surfaces on either
the Land or access roads if such coat is applied within one hundred twenty (120)
days of Substantial Completion or the final seal coating of the Building if such
coat is applied within one hundred twenty (120) days of Substantial Completion)
(the "Punchlist Items"). ("Uninterrupted," as used herein, shall mean that
Lessee shall not be required to vacate the Building or any portion thereof for
the completion thereof.)

             Lessor agrees to deliver sixty (60) days' advance written
notice to Lessee of the estimated date of Substantial Completion of the
Building. Lessee shall be permitted access to the Building at least 45 days
prior to the date of anticipated Substantial Completion for purposes of Lessee's
installation of merchandise storage and handling equipment (which installation
shall be performed pursuant to an installation schedule agreed upon between
Lessor and Lessee), cabling and telecommunications installations, provided
however, such entry by Lessee shall be at the sole risk and expense of Lessee
and shall not delay, interfere with or increase the cost of Lessor's Work.
Lessor shall have the right, by delivery of a facsimile notice to Lessee,
followed by a copy of such notice delivered by overnight delivery, to cause
Lessee to cease any activities which would violate the provisions of this
paragraph provided, however, if Lessee disputes that its activities are
delaying, interfering with or increasing the cost of Lessor's Work the matter
should be referred to the Construction Dispute Arbitrator for resolution.
Moreover, in the event that Lessor and Lessee are not able to agree upon the
installation schedule, the matter shall be referred to the Construction Dispute
Arbitrator for resolution. Any such early entry shall be conditioned upon Lessee
having the insurance coverage set forth in Article 14 hereof in place.

             At least two (2) business days prior to the Substantial
Completion of the Lessor's Work, Lessor shall notify Lessee that the Lessor's
architect has determined that Substantial Completion of the Building will occur.
On or before the Substantial Completion Date, Lessee and Lessor shall jointly
inspect the Lessor's Work and prepare a written schedule of Punchlist Items and
a determination of the itemized cost to complete each Punchlist Item ("Punchlist
Costs"). If Lessee disputes Lessor's architect's determination of Substantial
Completion or the Lessee and


                                       16
<PAGE>   22


Lessor cannot jointly agree on a schedule of Punchlist Items and Punchlist
Costs, Lessee shall notify Lessor by facsimile with a follow up written notice
sent by overnight delivery on the same day and the parties shall immediately
submit the dispute to Construction Dispute Arbitrator whose decision shall be
rendered within forty-eight (48) hours of Construction Dispute Arbitrator's
receipt of notice of the dispute. Taking of possession by Lessee shall be deemed
conclusively to establish that the Building has been completed in accordance
with the Lessor's Plans, except for any Punchlist Items.

         (d) Punchlist. A written schedule of Punchlist Items shall be developed
by Lessor and Lessee, acting reasonably, after an inspection of the Leased
Improvements by Lessor and Lessee or their designated representatives. Lessor
shall use its best efforts to complete the Punchlist Items within forty-five
(45) days, but in all events within sixty (60) days, after the schedule of
Punchlist Items has been mutually developed as set forth above and shall cause
the same to be completed in accordance with the Lessor's Plans ("Punchlist
Completion Date"). Lessee agrees that it will sign-off, as having been
completed, on any completed Punchlist Item upon request by Lessor within five
(5) business days of Lessor's request. If with Lessee's approval, delivery of
the Building to Lessee occurs in stages, the parties shall develop a schedule of
Punchlist Items at the time delivery of each portion of the Leased Property.

         If all such Punchlist Items are not completed in accordance with the
terms of this Lease on or before the Punchlist Completion Date, Lessee may
offset the amount of unpaid Punchlist Costs pursuant to the Offset and Recapture
Procedure; provided however, (i) any such offset amount was utilized to complete
Punchlist Items and (ii) Lessee provides appropriate lien waivers as requested
by Lessor's Assignees.

         (e) Warranty. Upon receipt of notice from Lessee, Lessor shall promptly
repair, or replace when necessary, any defect in Lessor's Work for which Lessor
has received notice during the period ending one (1) year following the
Substantial Completion Date. If any item of Lessor's Work is not substantially
completed at the Substantial Completion of the Lessor's Work, then the one-year
warranty described in the preceding sentence shall be deemed to have commenced
at the time of Substantial Completion of the item in question. This obligation
shall not apply to defects that are the result of (i) Lessee's violations of:
the Lease, manufacturers or supplier's warranties, negligent acts or omissions
or willful misconduct; (ii) ordinary wear and tear; (iii) acts or omissions of
third-parties not acting for or on behalf of the Lessor, unless caused by
Lessor's grossly negligent acts or omissions or willful misconduct; (iv)
Alterations by Lessee, or Lessee's Work and (v) damage as a result of fire or
other casualty, unless caused by Lessor's negligent acts or omissions or willful
misconduct. Lessee shall not be required to utilize any specific contractor or
material supplier for maintenance to preserve any construction warranties, and
may perform such maintenance by its own employees so long as Lessee complies
with the requirements of such warranties for the entire duration thereof and so
long as only qualified contractors or employees are used. Lessor further agrees
to procure for Lessee the benefit of any manufacturer's or installer's
warranties with respect to heating, ventilating, air conditioning and other
fixtures and/or equipment installed by Lessor at the Premises as part of
Lessor's Work (subject to the rights of Lessor's Assignee). To the extent that
any of the Lessor's Work is covered by a guarantee or warranty which has been
assigned to the Lessee, Lessee agrees that, prior to it requesting that


                                       17
<PAGE>   23

Lessor do or cause to be done any repairs or replacements pursuant to this
Section, Lessee shall first request of the applicable supplier that such repairs
or replacement be done by said supplier in accordance with the terms of its
guaranty or warranty.

             If Lessor receives notice of a defect within the one (1) year
period described above, Lessor shall diligently prosecute the correction of
same. If Lessor fails to correct any defect in Lessor's Work pursuant to this
Section 7.1, then Lessee shall, at its option, correct such defects ("Defect
Cost"). In such case, Lessee shall be entitled to offset the Defect Cost in
accordance with the Offset and Recapture Procedure.

         7.2 Lessee's Work. All work not provided herein to be done by Lessor
shall be performed by Lessee, at Lessee's expense, and deemed to be Lessee's
Work, and Lessee shall do and perform, at its expense, all Lessee's Work
diligently and promptly and in accordance with the following provisions. Lessee
acknowledges and agrees that the performance of any Lessee's Work which is not
in the nature of installation of trade fixtures and trade equipment may delay
the issuance of a certificate of occupancy or temporary certificate of
occupancy. Accordingly, Lessee agrees that Substantial Completion will be deemed
to have occurred upon the issuance of a temporary C.O. or final inspections of
Lessor's Work if the nature of Lessee's Work is such that the Village will not
issue a final C.O. until completion of Lessee's Work.

         7.3 Construction by Lessee.

             (a) Upon the Substantial Completion Date, Lessee agrees to
accept possession of the Leased Property and to perform the Lessee's Work in a
good and workmanlike manner. Lessee shall apply for all necessary building
permits prior to commencing Lessee's Work. By entering into possession of the
Leased Property, Lessee shall be deemed to have accepted the Leased Property and
to have acknowledged that the Leased Property fully complies with Lessor's
covenants and obligations hereunder, subject to: (i) the Lessor's
representations and warranties contained herein; (ii) the warranties to be
obtained by Landlord pursuant to Section 7.1(e); (iii) latent defects; (iv)
Punchlist Items; and (v) the right of Lessee to approve future title exceptions
pursuant to Section 7.4 hereof. All Lessee's Work is to be done by Lessee, at
Lessee's sole expense, and in accordance with the plan and specifications, as
approved by Lessor and Lessor's Assignee. Lessee agrees to submit to Lessor and
Lessor's Assignee complete plans and specifications including engineering,
mechanical and electrical work covering Lessee's Work. Lessor shall review and
approve Lessee's plans, or notify Lessee of any failure of Lessee's plans and
specifications to meet with Lessor's approval, within six (6) business days of
the receipt of same. In the event Lessor fails to notify Lessee of the approval
by Lessor of Lessee's plans within the time period provided above, Lessee's
plans shall be deemed approved.

             (b) Lessee's Work shall be done in accordance with all
applicable Legal Requirements including, without limitation, the Americans With
Disabilities Act, 42 U.S.C. ss. 12101 et seq. and Lessee's plans shall be
certified to by an Illinois licensed registered architect or professional
engineer, as appropriate. Lessee shall not perform any work at the Leased
Property until Lessor has given Lessee written approval of Lessee's plans and
specifications (or the same are deemed approved as provided above) and Lessee
has obtained appropriate builder's


                                       18
<PAGE>   24


risk, property damage and commercial general liability insurance naming Village,
Lessor, Lessee, and Lessor's Assignees as their interest may appear as required
by this Lease and established the same to Lessor's satisfaction. Any of Lessee's
Work causing venting, opening, sealing, waterproofing or any altering of the
roof shall be performed by Lessor's roofing contractor or by a roofing
contractor selected by Lessee and approved by Lessor, in Lessor's sole
discretion, and shall be done at Lessee's sole expense. Lessee shall provide
Lessor with a certificate from the roofing contractor that all of Lessee's Work
causing venting, opening, sealing, waterproofing or in any way altering the roof
has been performed in compliance with the plans and specifications and in
accordance with all guarantees or warranties for the roof. Lessee hereby
covenants and agrees to hold Lessor harmless and will indemnify, protect and, at
Lessor's option, defend Lessor and Lessor's Assignee, with counsel reasonably
approved by Lessor, from any damage to the Leased Property resulting, directly
or indirectly, from Lessee's venting, opening, sealing, waterproofing or any
other way altering the roof. If the nature of Lessee's Work is such that the
C.O. cannot issue until occupancy by Lessee and/or completion of Lessee's Work,
then Lessee agrees to furnish Lessor a C.O. from all applicable local
authorities at the completion of Lessee's Work and/or upon Lessee's occupancy.
Lessee shall also be responsible for the prompt removal of Lessee's construction
debris.

             (c) Lessee shall post such notices of non-responsibility as
Lessor or Lessor's Assignees shall reasonably require.

         7.4 Condition of the Leased Property. Lessee acknowledges that it has
examined title to, and the condition of, the Leased Property prior to the
execution and delivery of this Lease and so long as such complies with Exhibit F
has found the same to be satisfactory for all purposes hereunder. Lessee
expressly approves the list of title exceptions set forth in Exhibit A-1
attached hereto ("Permitted Exceptions"). Lessor agrees that no other matter
shall be placed of record without Lessee's prior written consent. Lessee
acknowledges that various easements may be required by the Village and various
utility companies in connection with development of the Leased Property
("Development Easements") and agrees not to unreasonably withhold, condition or
delay consent to such Development Easements. Any response to a request for
approval of a Development Easement shall be delivered within ten (10) business
days of the request for such approval and if approval is denied or conditioned,
shall specifically state the reasons for the withholding or conditioning.
Requests for approval not responded to within ten (10) business days shall
automatically be deemed approved. Lessee shall not be entitled to withhold its
consent so long as the Development Easement(s) requested are consistent with the
development standards for other first class industrial properties in the greater
Chicago Metropolitan area and do not interfere with Lessee's use of and access
to the Leased Property or result in any increased cost to Lessee. Lessor agrees
to deliver to Lessee copies of any foundation or as built surveys required by
the terms of Lessor's Indenture to Lessee simultaneously with such delivery to
Lessor's Assignee. Any such surveys shall be certified to Lessee and any title
company which Lessee shall have delivered prior notice of to Lessor. Except as
expressly set forth herein, Lessee is renting the Leased Property "as is" in its
present condition. EXCEPT AS EXPRESSLY SET FORTH HEREIN, LESSOR MAKES NO
WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED, IN RESPECT OF THE LEASED
PROPERTY OR ANY PART THEREOF, EITHER AS TO ITS FITNESS FOR USE, DESIGN OR
CONDITION FOR ANY PARTICULAR USE


                                       19
<PAGE>   25

OR PURPOSE OR OTHERWISE, AS TO COMPLIANCE WITH LEGAL REQUIREMENTS, AS TO QUALITY
OF THE MATERIAL OR WORKMANSHIP THEREIN, LATENT OR PATENT, OR AS TO LESSOR'S
TITLE THERETO OR OTHERWISE, IT BEING AGREED THAT ALL SUCH RISKS ARE TO BE BORNE
BY LESSEE. LESSEE ACKNOWLEDGES THAT THE LEASED PROPERTY HAS BEEN INSPECTED BY
LESSEE AND IS SATISFACTORY TO IT. Notwithstanding anything herein to the
contrary, as to any Disclaimed Lessor's Work, Lessee does not accept such work
or the condition of the Leased Premises but, rather, Lessor shall remain
responsible throughout the Term for all repairs, maintenance and correction, as
may be appropriate, necessitated Disclaimed Lessor's Work.

         7.5 Use of the Leased Property. Lessee may use the Leased Property only
for the Permitted Use. Lessee agrees that it will not permit any unlawful
occupation, business or trade to be conducted on the Leased Property or any use
to be made thereof contrary to any Legal Requirements or Insurance Requirements
applicable thereto. Lessee shall not use or occupy or permit the Leased Property
to be used or occupied, nor do or permit anything to be done in or on the Leased
Property or any part thereof, in a manner that may make it impossible to obtain
any insurance thereon which Lessee is, or may be, required to furnish hereunder,
or that will cause or be likely to cause structural or other material injury to
any of the Leased Improvements or the Personal Property, or that will constitute
a public or private nuisance or waste.

         7.6 Construction Delays.

             (a) Special Definition of Force Majeure Event. As used in this
Article of the Lease, the term "Force Majeure Event" shall mean delays due to
(i) strikes or other labor troubles not specific to the Project, (ii)
governmental restrictions and limitations, war or other national emergency,
(iii) non-availability of materials or supplies (provided that if comparable
materials (the "Comparable Materials") can be obtained albeit at an increased
cost, then such inability to obtain material shall not constitute a Force
Majeure Event, unless the total cost of all Comparable Materials less any cost
savings on materials necessary for Lessor's Work required to be used to complete
Lessor's Work exceeds the greater of (a) One Million Dollars and No/100
($1,000,000.00) or (b) ten percent (10%) of the aggregate cost of all materials
required for Lessor's Work as such is determined by the contracts for such
materials. Notwithstanding the foregoing, there shall be no limitation on the
increased costs that may be incurred to obtain the pre-cast concrete panels or
steel for the Building. Comparable Materials shall mean materials of a quality
equal to or better than that which is being replaced), delay in transportation,
(iv) accidents, floods, fire, damage or other casualties, weather or acts, (v)
delays by utility companies in bringing utility lines to the Land all beyond the
reasonable control of Lesser, and (vi) Lessee's Delays. Except for the
"Termination Date" as described below, whenever a period of time is provided in
this Article of the Lease, a party shall not be liable or responsible for a
delay due to a Force Majeure Event to the extent of the actual and unavoidable
period of time that the party so performing is actually and unavoidably delayed.
It shall be a condition of a right to claim an extension of time as a result
hereof that the delayed party notifies the other party in writing within two (2)
business days after the occurrence of such cause, specifying the nature thereof
and the period of time contemplated or necessary for performance.
Notwithstanding anything herein to the contrary contained, in no event shall the
Termination Date be amended or changed as a result

                                       20
<PAGE>   26

of a Force Majeure Event. Unavoidable Delays, as defined in this Lease, shall
not be applicable to this Article.

             (b) Delay in Commencement Date; Termination.

                 Except as specifically provided below, in the event the
Commencement Date does not occur by April 1, 2000, then Lessor shall pay to
Lessee all of Lessee's "Delay Costs" payable by Lessee from and after April 1,
2000. In addition, in the event the Commencement Date does not occur on or
before January 1, 2001 (the "Termination Date"), other than as a result of
Lessee Delays, then Lessee shall have the right, by written notice given to
Lessor on or before five (5) days following the Termination Date (the "Notice
Date") to elect, within Lessee's sole and absolute discretion, (i) to terminate
this Lease whereupon all obligations of Lessee to Lessor or to Lessor's Lender,
(as defined below but which term shall also include Lessor's Assignees)
hereunder or stated in any other document or however else arising to Lessor
(except for such obligations that may have accrued prior to the effective date
of termination) shall terminate and be forever released by Lessor and Lessor's
Lender (as defined below) without further action of any person or party or (ii)
extend the Termination Date. Notwithstanding anything to the contrary, if
Lessee elects to so terminate this Lease, Lessor shall remain obligated to
Lessee for all Delay Costs accruing through March 31, 2001.

             (c) Definition of Delay Costs. The term "Delay Costs" shall
mean the sum of the Retention Rents, Relocation Costs and Liquidated Damages,
all as defined below:

                 (i) all occupancy costs incurred by Lessee (for purposes of
this Article, the term "Lessee" shall include any affiliates of Lessee that
would be using the Premises) either for premises currently occupied by Lessee
as of the date hereof or premises to which Lessee relocates some or all of its
operations as a result of the expiration of leases for such current premises
including, without limitation, taxes, any so-called penalty or holdover rents
or charges that may be incurred as a result of Lessee's retention of possession
of the current premises, and any increased rental obligations agreed to by
Lessee in order to remain in the current premises beyond the respective
expiration dates (collectively referred to as the "Retention Rents") but not to
exceed $135,000.00 per month. The amount of the Retention Rents shall be
reduced by the rent and other charges that Lessee would pay pursuant to the
terms of this Lease (which rent and other charges shall be reduced by $52,872.50
per month, which reduction amount is referred to herein as the "Reduction Fee"),
if the Commencement Date had been April 1, 2000 with the result intended to be
that Lessee would be placed in the same position as if the Commencement Date had
occurred on April 1, 2000.

                 (ii) any costs incurred by Lessee in relocating its staff,
equipment, inventory merchandise or operations from any or all of the current
premises to another location and any additional wage or salary expenses that
may arise as a result of a reduction in the area utilized by Lessee in any of
the current premises in order to satisfy an obligation to a lessor thereof so
as to be able to retain possession of a portion of a current premises not to
exceed Fifty Thousand and No/100 Dollars ($50,000.00) per move (collectively
the "Relocation Costs"), and;


                                       21
<PAGE>   27




                 (iii) because the injury to Lessee as a result of not being
able to consolidate its warehousing and distribution facilities into the
Premises are incapable of being accurately determined, commencing May 1, 2000,
Delay Costs shall include liquidated damages (referred to herein as the
"Liquidated Damages") equal to fifty percent (50%) of the sum of the Retention
Rents plus the Relocation Costs and after June 1, 2000, Liquidated Damages equal
to one hundred (100%) of the sum of the Retention Rents plus Relocation Costs:

                 (iv) Notwithstanding the foregoing, the total Delay Costs
payable to Lessee shall not exceed the following:

                                                                Maximum Lessor
           For the Period                                     Payment per Month
           --------------                                     -----------------
           April 1, 2000 through April 30, 2000                   $135,000.00
           May 1, 2000 through May 31, 2000                       $175,000.00
           June 1, 2000 through Substantial Completion Date       $200,000.00

In the event the Substantial Completion Date occurs after June 1, 2000, but on
or before December 31, 2000, but accepts possession of the Leased Property
solely for the installation and testing of its equipment, the Lessor shall
continue to be liable to Lessee for the Retention Rents and the Relocation Costs
arising after the Substantial Completion Date until March 31, 2001, with accrued
Liquidated Damages for the period prior to the Substantial Completion Date to be
paid and there shall be no further accrual of Liquidated Damages after the
Substantial Completion Date. While Lessee shall use commercially reasonable
efforts to mitigate the Retention Rent and Relocation Costs, Lessee shall be
under no obligation: (i) to accept possession or conduct any business operations
in less than the entire Leased Premises, (ii) to move from any warehouse,
distribution or other facility between the date hereof and the date Lessee
accepts possession of the Leased Premises, (iii) to enter into litigation or
arbitration with any current or future landlord, or (iv) to vacate any facility
at the expiration of a lease term in order to avoid holdover rent or the payment
or accrual of damages to the landlord thereof (it being acknowledged that Lessor
may be obligated to pay holdover rent and/or damages or to pay an above market
rent to a landlord to remain in possession of a facility in order to avoid
disruption of Lessee's operations therein and that Lessee's acceptance of rental
terms that are not so-called "market rates", whether for a current facility or
new temporary facility, shall not be deemed to be a failure of Lessee to
mitigate damages).

             (d) Payment and Security for Delay Costs. Regardless of
whether this Lease is terminated by either party pursuant to the provisions of
this Article, the Delay Costs shall be paid to Lessee on a monthly basis with
the first payment to be made during the month of April, 2000, provided that in
each instance such payment shall be made within fifteen (15) days after receipt
of a statement from Lessee setting forth the amount of the Delay Costs. The
obligations of Lessor to pay the Delay Costs shall be secured to the reasonable
satisfaction of the Lessee. The duty to pay the Delay Costs shall be an
obligation of Lessor regardless of either the occurrence of the Commencement
Date or the termination of this Lease pursuant to this Article so that Lessor
shall be obligated to pay the Delay Costs that Lessee incurs through March 31,
2001, to the extent

                                       22
<PAGE>   28


of contractual commitments or legal liability arising, for example, as the
result of being a holdover Lessee until Lessee is able to obtain leased premises
reasonably comparable to the Leased Improvements.

             (e) If Substantial Completion occurs between June 1, 2000 and
December 31, 2000, Lessee shall pay to Lessor one-half (1/2) of the Basic Rent
less the applicable Reduction Fee; provided, however, that if Lessee uses more
than fifty percent (50%) of the Building, other than for the installation and
testing of its equipment, then Lessee shall pay full Basic Rent less the
applicable Reduction Fee.

                 If  Substantial  Completion  has  occurred  before  April 1,
2000, Lessor shall pay to Lessor's contractor an early completion bonus
equaling One Hundred Thousand and No/100 Dollars ($100,000.00) for each full
month that Substantial Completion has occurred in advance of April 1, 2000
(such amount to be prorated in the event of mid-month Substantial Completion)
("Early Completion Bonus"). Upon evidence of payment of the Early Completion
Bonus by Lessor to Lessor's Contractor, Lessee shall promptly pay Lessor an
amount equal to one-half (1/2) of the Early Completion Bonus actually paid, not
to exceed the sum of Fifty Thousand and No/100 Dollars ($50,000.00) per month.

                 Notwithstanding the foregoing, Lessee's obligation with respect
to payment of the Early Completion Bonus shall not exceed Two Hundred Thousand
and No/100 Dollars ($200,000.00).

                                    ARTICLE 8

         8.1 Compliance with Legal and Insurance Requirements, Instruments, etc.
Subject to Section 13.1 relating to permitted contests, Lessee, at its expense,
will promptly (a) comply with all Legal Requirements and Insurance Requirements
in respect of the use, operation, maintenance, repair and restoration of the
Leased Property, whether or not compliance therewith shall require structural
changes in any of the Leased Improvements or interfere with the use and
enjoyment of the Leased Property, and whether or not such Legal Requirements or
Insurance Requirements represent a change in policy of the entity promulgating
or enforcing any such Legal Requirement or Insurance Requirement, and (b)
procure, maintain and comply with all licenses and other authorizations required
for any use of the Leased Property then being made, and for the proper erection,
installation, operation and maintenance of the Leased Improvements or any part
thereof.

         8.2 Capital Improvement Credit. If Lessee is required, pursuant to
Section 8.1 or 9.1 hereof, to make any capital improvement, repair or
replacement to the roof, structural elements, HVAC or other building systems of
the Leased Property which individually cost in excess of One Hundred Thousand
Dollars ($100,000), then Lessee shall deliver prior written notice to Lessor of
the need for such improvement, repair or replacement, including detailed
information as to the nature and estimated cost thereof for Lessor's approval.
At the expiration of this Lease, provided no Event of Default exists hereunder,
Lessee shall receive from Lessor a reimbursement for the unamortized portion of
such capital improvement, repair, or replacement approved by Lessor (or


                                       23
<PAGE>   29


binding pursuant to the last sentence hereof) applicable to the period beyond
the Lease Term. The amount of such capital improvement shall be amortized over
the useful life of the improvement in question (as determined by Internal
Revenue Service standards) at an interest rate equal to the lesser of (a) ten
percent (10%) or (b) Lessee's actual cost of borrowing to pay for such capital
improvement. In the event of a dispute between Lessor and Lessee as to the
necessity for such capital improvement, repair or replacement, Lessor and Lessee
shall submit such dispute to a mutually acceptable independent architect,
engineer or contractor (as appropriate for the item in question) whose decision
shall be final, binding and conclusive on the parties. Any amounts not paid to
Lessee within thirty (30) days (as the same may be extended) shall become a lien
upon the Leased Property, which lien shall be subordinate to the lien of any
Lessor's Assignee. The expiration date of the Term shall be deemed extended
during the period of any good faith negotiations for a renewal pursuant to
Section 19.1 of the Lease. Notwithstanding the foregoing, Lessor shall have no
obligation to Lessee with respect to said expenditure if the same was
necessitated by Lessee's negligence, willful acts, or failure to maintain the
building in accordance with warranty requirements. The provisions of this
Section 8.2 shall not apply with respect to events of damage or destruction, and
Lessor and Lessee acknowledge that the provisions of Article 15 shall be
controlling upon the occurrence of the same. In the event Lessor purchases the
Leased Property, then the amount that would otherwise be reimbursed to Lessee
pursuant to this Section 8.2 shall be a credit in favor of Lessee against the
purchase price.


                                    ARTICLE 9

         9.1 Maintenance and Repair. (a) Except as provided in Section 7.1,
Lessee, at its expense, will maintain and repair the Leased Property and all
private roadways, sidewalks and curbs appurtenant thereto in good condition,
repair and working order (ordinary wear and tear excepted), and, with reasonable
promptness, make all necessary and appropriate repairs and replacements thereto
of every kind and nature, whether interior or exterior, structural or
non-structural, ordinary or extraordinary, foreseen or unforeseen, or arising by
reason of a condition existing prior to the commencement of the Term of this
Lease (concealed or otherwise). All repairs and replacements shall be at least
equivalent in quality to the original work. Lessee will not take or omit to take
any action the taking or omission of which might materially impair the value or
the usefulness of the Leased Property or any part thereof or commit any waste of
the Leased Property or any part thereof.

             (b) Except as expressly provided with respect to Lessor's
Work, the Disclaimed Lessor's Work and Section 8.2 hereof, Lessor shall not
under any circumstances be required to build any improvements on the Leased
Property, or to make any repairs, replacements, alterations or renewals of any
nature or description to the Leased Property, whether ordinary or extraordinary,
structural or non-structural, foreseen or unforeseen, or to make any expenditure
whatsoever in connection with this Lease, or to maintain the Leased Property in
any way. Lessee hereby waives the right to make repairs at the expense of Lessor
pursuant to any law in effect at the time of the execution this Lease or
hereafter enacted.

             (c) Nothing contained in this Lease and no action or inaction by
Lessor shall

                                       24
<PAGE>   30

be construed as constituting the consent or request of Lessor, expressed or
implied, to any contractor, subcontractor, laborer, materialman or vendor to or
for the performance of any labor or services or the furnishing of any materials
or other property for the construction, alteration, addition, repair or
demolition of or to the Leased Property or any part thereof.

             (d) Upon the expiration or prior termination of the Term,
Lessee will vacate and surrender the Leased Property to Lessor in the condition
in which the Leased Property was originally received from Lessor, except as
repaired, rebuilt, restored, altered or added to as permitted or required by the
provisions of this Lease, ordinary wear and tear excepted.

         9.2 Encroachments, Restrictions, etc. If Lessee shall cause or have
caused any of the Leased Improvements to encroach upon any property, street or
right-of-way adjacent to the Leased Property, or to violate the agreements or
conditions contained in any restrictive covenant or other agreement affecting
the Leased Property, or any part thereof, or shall impair the rights of others
under any easement or right-of-way to which the Leased Property is subject, then
promptly upon the request of Lessor or at the behest of any Person affected by
any such encroachment, violation or impairment, Lessee shall, at its expense,
subject to its right to contest the existence of any encroachment, violation or
impairment and in such case, in the event of an adverse final determination,
either (i) obtain valid and effective waivers or settlements of all claims,
liabilities and damages resulting from each such encroachment, violation or
impairment, whether the same shall affect Lessor or Lessee or (ii) make such
changes in the Leased Improvements and take such other actions as shall be
necessary to remove such encroachment and to end such violation or impairment,
including, if necessary, the alteration of any of the Leased Improvements. Any
such alteration shall be made in conformity with the requirements of Section
10.1.

                                   ARTICLE 10

         10.1 Alterations, Substitutions and Replacements. Lessee, at its
expense, may at any time and from time to time make interior, non-structural
alterations of, and interior nonstructural additions to, the Leased Improvements
or any part thereof and substitutions and replacements for the same
(collectively, "Alterations"), provided that (a) the market value of the Leased
Property shall not be reduced or its usefulness impaired, (b) the work shall be
done expeditiously and in a good and workmanlike manner using new materials of
good quality, (c) the plans and specifications for any single Alteration with an
estimated cost in excess of Two Hundred Thousand Dollars ($200,000.00) shall be
approved in advance in writing by Lessor and, if required by the terms of
Lessor's Indenture, Lessor's Assignees, such approval not to be unreasonably
withheld, (d) Lessee shall comply with all Legal Requirements and Insurance
Requirements, if any, applicable to the work, (e) Lessee shall promptly pay all
costs and expenses and discharge any and all liens arising in respect of the
work and (f) no Alteration shall adversely affect the mechanical, utility,
heating, ventilating and air conditioning systems or electrical systems of the
Leased Improvements. All Alterations shall immediately become and remain the
property of Lessor, shall be deemed part of the Leased Property, and shall be
subject to all of the terms and provisions of this Lease. No Alterations shall
be made which would tie in or connect any Leased Improvements on the Leased
Property with any other improvements on property adjacent to the Leased
Property.


                                       25
<PAGE>   31

At the time Lessee seeks Lessor's approval, Lessee may request that Lessor
determine, as a part of its approval, whether the Alteration must be removed
and/or the Leased Property be restored. Lessee shall not be obligated to restore
Alterations that Lessor, at the time of granting its approval, indicates need
not be removed or for which restoration need not be performed.

         Subject to the provisions of Article 35, Lessor agrees that Lessee's
right to expand the Building is pre-approved and shall not be subject to the
provisions of this Section 10.1.


                                   ARTICLE 11

         11.1 Environmental Matters. In the event any activity has been
conducted at the Leased Property prior to the date of the Environmental Report,
or in the future will be conducted at the Leased Property following the
Substantial Completion Date or any past or any future use of the Leased Property
following the Substantial Completion Date in any manner (a) which has or would
cause the Leased Property to become a hazardous waste treatment storage or
disposal facility within the meaning of, the Resource Conservation and Recovery
Act of 1976, 42 U.S.C. ss.ss. 6901 et seq., or any other federal, state or local
law, rule, ordinance or regulation relating to Hazardous Materials, (b) has or
would cause a release or threatened release of Hazardous Materials from the
Leased Property within the meaning of, or otherwise bring the Leased Property
within the ambit of, the Comprehensive Environmental Response, Compensation and
Liability Act of 1980, 42 U.S.C. ss.ss. 9601-9657, or any other federal, state
or local law, rule, ordinance or regulation relating to Hazardous Materials, or
(c) has or would cause the point source discharge of pollutants or effluents
into any water source or system, or the discharge into the air of any emissions,
which would require a permit under the Federal Water Pollution Control Act, 33
U.S.C. ss.ss. 1251 et seq., or the Clean Air Act, 42 U.S.C. ss.ss. 7401 et seq.,
or any other federal, state or local law, rule, ordinance or regulation relating
to Hazardous Materials, Lessee agrees to promptly notify Lessor and Lessor's
Assignees, if any, and further agrees promptly to so notify such parties of any
claim made with respect to any of such matters. In the event that the Lessee
discovers that Hazardous Materials exist on the Leased Property in violation of
any applicable law, rule, ordinance or regulation (whether or not disclosed in
the Environmental Report) Lessee shall also promptly notify Lessor of such
condition and shall take such actions as are required by applicable law. Lessee
agrees to comply with each of the recommendations, if any, contained in the
Environmental Report for the protection, operation and maintenance of the Leased
Property and shall not use the Leased Property in violation of any Environmental
Laws.

         Notwithstanding anything herein contained, Lessee shall not be
responsible for, and accepts no liability for, any violation of any
Environmental Law or for any use involving Hazardous Materials that is not
disclosed in the Environmental Report or that results from conduct of Lessor or
Lessor's contractor, its subcontractors, materialmen, agents, and employees.

                                       26
<PAGE>   32
                                   ARTICLE 12

         12.1 Liens. Subject to Section 13.1 relating to contests, Lessee will
not directly or indirectly create or allow to remain and will promptly discharge
at its expense any lien, encumbrance, attachment, title retention agreement or
claim upon the Leased Property or any attachment, levy, claim or encumbrance in
respect of the Basic Rent or Additional Rent provided under this Lease arising
out of Lessee's (or its agents' or employees') occupancy of or activities with
respect to the Leased Property, not including, however, (a) this Lease, (b) any
Indenture, (c) restrictions, liens and other encumbrances which are consented to
in writing by Lessor and Lessor's Assignees, if any, or any easements which do
not materially and adversely affect (1) the marketability of title to the Leased
Property, (2) the use of the Leased Property for all purposes of this Lease, or
(3) the fair market value of the Leased Property, provided that Lessee shall
first have delivered an Officer's Certificate to Lessor and Lessor's Assignees,
if any, certifying as to the matters set forth in clauses (1) and (2), (d) liens
for those taxes of Lessor which Lessee is not required to pay hereunder, (e)
subleases permitted by Article 24, liens for Impositions or for sums resulting
from noncompliance with Legal Requirements so long as (1) the same are not yet
payable or are payable without the addition of any fine or penalty or (2) such
liens are in the process of being contested as permitted by Section 13.1, and
(f) liens of mechanics, laborers, materialmen, suppliers or vendors for sums
either disputed or not yet due, provided that (1) the payment of such sums shall
not be postponed under any related contract for more than thirty (30) days after
the completion of the action giving rise to such lien and such reserve or other
appropriate provisions as shall be required by law or sound accounting
principles shall have been made therefor or (2) any such liens are in the
process of being contested as permitted by Section 13.1. Notwithstanding
anything contained herein to the contrary, Lessee acknowledges and agrees that
Impositions shall not be contested below the levels specified in the
Redevelopment Agreement.


                                   ARTICLE 13

         13.1 Permitted Contests. Lessee, on Lessor's behalf, but at Lessee's
expense, may contest, by appropriate legal proceedings conducted in good faith
and with due diligence, the amount or validity or application, in whole or in
part, of any Imposition or any Legal Requirement or Insurance Requirement or any
lien, encumbrance, charge or claim not permitted by Section 12.1, provided that
(a) in the case of an unpaid Imposition, lien, encumbrance, charge or claim, the
commencement and continuation of such proceedings shall suspend the collection
thereof from Lessor and/or from the Leased Property, (b) neither the Leased
Property nor any rent therefrom nor any part thereof or interest therein would
be in any immediate danger of being sold, forfeited, terminated, canceled or
lost, (c) in the case of a Legal Requirement, Lessor would not be in any danger
of civil or criminal liability for failure to comply therewith pending the
outcome of such proceedings, (d) in the case of a Legal Requirement and/or an
Imposition, lien, encumbrance or charge, Lessee shall give such reasonable
security as may be demanded by Lessor or Lessor's Assignees, if any, to insure
ultimate payment of the same, including, without limitation, all interest and
penalties thereon, and to prevent any sale or forfeiture of the Leased Property,
the Basic Rent and any Additional Rent by reason of such non-payment or
noncompliance, provided, however, Lessee is not permitted to contest, and the
provisions of this Section shall not be construed to permit Lessee to contest,
the payment of Basic Rent, Additional Rent or any other sums payable by Lessee
to Lessor hereunder, (e) in the case of an Insurance

                                       27
<PAGE>   33

Requirement, the coverage required by Article 14 shall be maintained, and (f) if
such contest be finally resolved against Lessor or Lessee, Lessee shall, as
Additional Rent due hereunder, promptly pay the amount required to be paid,
together with all interest and penalties accrued thereon, or comply with the
applicable Legal Requirement or Insurance Requirement. Lessee shall indemnify
and save Lessor harmless against any liability, cost or expense of any kind that
may be imposed upon Lessor in connection with any such contest and any loss
resulting therefrom.


                                   ARTICLE 14

         14.1 Insurance. So long as this Lease remains in effect, Lessee agrees
to maintain at all times and at its expense insurance, covering the Leased
Property as follows:

             (a) Property Insurance. Insurance with respect to the Leased
Improvements against any peril included within the classification "All Risks of
Physical Loss," with extended coverage in amounts at all times sufficient to
prevent it from becoming a co-insurer within the terms of the applicable
policies, but in any event such insurance shall be maintained in an amount equal
to the full insurable value of the Leased Property and with reasonable
deductibles. The term "full insurable value" as used herein shall mean the
actual replacement cost of the Leased Property (without taking into account any
depreciation, and exclusive of excavations, footings and foundations,
landscaping and paving).

             (b) Liability Insurance. Comprehensive general liability
insurance, including bodily injury, death and property damage liability, dram
shop coverage and umbrella liability insurance against any and all claims,
including all legal liability to the extent insurable imposed upon Lessor and
Lessor's Assignees as their interests may appear and all court costs and
reasonable attorneys' fees and expenses, arising out of or connected with the
possession, use, leasing, operation, maintenance or condition of the Leased
Property in such amounts as Lessor's Assignees may require, but in no event for
a combined single limit of less than $1,000,000.00 minimum (or a $3,000,000.00
minimum if the Leased Property contains one or more elevators) with a
$2,000,000.00 minimum (or a $6,000,000.00 minimum if the Leased Property
contains one or more elevators) general aggregate limit. In the event that any
payment of proceeds is made under any umbrella liability insurance policy, the
Lessee shall immediately purchase additional umbrella liability insurance
coverage so that at all times there shall be no less than a $1,000,00.00 minimum
(or a $3,000,000.00 minimum if the Leased Property contains one or more
elevators) of liability insurance coverage per occurrence with a $2,000,000.00
minimum (or a $6,000,000.00 minimum if the Leased Property contains one or more
elevators) general aggregate limit.

             (c) Workers' Compensation Insurance. Statutory workers'
compensation insurance (to the extent the risks to be covered thereby are not
already covered by other policies of insurance maintained by it), with respect
to any work on, about or regarding the Leased Property.


                                       28
<PAGE>   34

             (d) Business Interruption Insurance. Business interruption
and/or loss of "rental value" insurance in an amount sufficient to avoid any
co-insurance penalty and to provide proceeds which will cover a period of one
(1) year.

             (e) Boiler and Machinery Insurance. Broad form boiler and
machinery insurance covering all boilers or other pressure vessels, machinery
and equipment located in, on or about the Leased Property and insurance against
loss of occupancy or use arising from any such breakdown in an amount equal to
100% of the actual replacement cost of such machinery (without taking into
account any depreciation) and containing reasonable deductibles.

             (f) Flood Insurance. If all or any portion of the Leased
Property is located within a federally designated flood hazard zone, flood
insurance as is generally available and in such amount and with such deductibles
as Lessor's Assignees may require.

                 All insurance policies shall be in form and substance
acceptable to Lessor's Assignees, shall name Lessor's Assignees and their
successors and assigns as their interest may appear as additional insureds,
mortgagees and/or loss payees, as deemed appropriate by Lessor's Assignees,
with the exception of the property exclusively owned by Lessee, such as
inventory, machinery and equipment, and shall provide that all proceeds are
payable to Lessor's Assignees. All insurance companies providing such insurance
shall have a Best's rating of at least A-.

         14.2 Policy Provisions and Certificates. The insurance maintained by
Lessee under clauses (a), (b), (d), (e), and (f) of Section 14.1 shall name
Lessor and Lessee, as named insureds, as their respective interests may appear,
and shall bear a standard non-contributory first mortgagee endorsement, as
appropriate, in favor of Lessor's Assignees, if any, as loss payees. The
insurance maintained by Lessee under clauses (a), (b), (d), (e) and (f) of
Section 14.1 shall provide that all property losses insured against shall be
adjusted by Lessee (prior to an Event of Default) (subject to Lessor's approval
of final settlement of estimated losses of Fifty Thousand Dollars ($50,000.00)
or more) and that the proceeds thereof shall be paid to Lessor, and Lessor's
Assignees, to be applied in the manner hereinafter set forth in Section 15.1 and
Section 15.3. All insurance maintained by Lessee shall provide that (a) no
cancellation or reduction thereof shall be effective until at least thirty (30)
days after receipt by Lessor and Lessor's Assignees, if any, of written notice
thereof, and (b) all losses shall be payable notwithstanding any act or
negligence of Lessor, Lessor's Assignees, if any, or Lessee or their respective
agents or employees which might, absent such agreement, result in a forfeiture
of all or part of such insurance payment and notwithstanding (i) the occupation
or use of the Leased Property for purposes more hazardous than permitted by the
terms of such policy, (ii) any foreclosure or other action or proceeding taken
pursuant to any provision of any Indenture upon the happening of an event of
default thereunder, or (iii) any change in title or ownership of the Leased
Property or any part thereof. Lessee will, within fifteen (15) days after the
same first becomes due hereunder, furnish to Lessor and Lessor's Assignees, if
any, certificates for the insurance required by Section 14.1, and not less than
thirty (30) days before the expiration of any such insurance, certificates
evidencing the replacement or renewal thereof, together with written evidence
that the premium therefor has been paid.


                                       29
<PAGE>   35




         14.3 Subrogation. During the period prior to completion of any
Punchlist Items, in respect of any real, personal or other property located in,
at or upon the Leased Property, and in respect of the Leased Property itself,
Lessee hereby releases Lessor and Lessor's Assignees, if any, from any and all
liability or responsibility to Lessee or anyone claiming by, through or under
Lessee, by way of subrogation or otherwise, for any loss or damage caused by
fire or any other casualty whether or not such fire or other casualty shall have
been caused by the willful fault or gross negligence of Lessor or Lessor's
Assignees, if any, or anyone for whom any of said Persons may be responsible. If
generally available from insurance carriers, then, during the period prior to
completion of the Punchlist Items, Lessee shall require its fire, extended
coverage and other casualty insurance carriers to include in Lessee's policies a
clause or endorsement whereby the insurer waives any rights of subrogation
against Lessor and Lessor's Assignees, if any.

         14.4 Other Insurance. Lessee shall not take out separate insurance
concurrent in form or contributing in the event of loss with that required by
this Article to be furnished by Lessee unless Lessor and Lessor's Assignees, if
any, are included therein as named insureds as their respective interests may
appear, with loss payable as in this Article provided. Lessee shall immediately
notify Lessor and Lessor's Assignees, if any, whenever any such separate
insurance is taken out and shall deliver the policy or policies or duplicates
thereof, or certificates evidencing the same as provided in this Article.


                                   ARTICLE 15

         15.1 Notice of Damage, Destruction or Taking; Condemnation Awards. In
case of any material damage to or destruction of the Leased Property or any part
thereof or in case of any Taking, Lessee shall forthwith give notice thereof to
Lessor. If Lessor shall be advised by the condemning authority of a proposed
Taking, Lessor shall forthwith give notice thereof to Lessee. In case of any
such Taking (whether permanent or temporary), damage or destruction, Lessor
shall be entitled to all awards or insurance payments on account thereof, other
than as expressly set forth herein. Lessee shall be entitled to any awards made
(i) for the taking of personal property, inventory or trade fixtures belonging
to Lessee including Lessee's Equipment, (ii) for the interruption of Lessee's
business or its moving costs, (iii) for the value of any leasehold improvements
installed and paid for by Lessee, or (iv) or other compensable tenant claims,
including, without limitation, moving expenses; provided in no event shall
Lessee be entitled to any award made for the value of the leasehold. Unless an
Event of Default shall have occurred, all sums so received by Lessor, shall be
applied in accordance with the provisions of Section 15.3, except that any such
sums received with respect to a Taking for temporary use shall be applied in
accordance with the provisions of Section 15.2. For the purposes of this Lease,
all amounts paid pursuant to any agreement with any condemning authority in
settlement of any condemnation or other eminent domain proceeding affecting the
Leased Property shall be deemed to constitute an award made in such proceeding
whether or not the same shall have actually been commenced. For the purposes of
this Article, the terms "net proceeds" and "net awards" shall mean,
respectively, (i) any insurance proceeds in respect of any damage to or
destruction of the Leased Property or any part thereof, or (ii) any awards in
connection with any Taking thereof, in each case, less all costs and expenses,
including attorneys' fees, incurred in connection with the seeking


                                       30
<PAGE>   36

and obtaining of any such proceeds or awards.

         15.2 Taking for Temporary Use. In case of a Taking for temporary use,
there shall be no termination, cancellation or modification of this Lease, and
Lessee shall continue to perform and comply with (except as such performance and
such compliance may be rendered impossible by reason of such Taking) all of its
obligations under this Lease and shall in no event be relieved of its obligation
to pay punctually all Rent or any other charges payable hereunder. If no Event
of Default shall have occurred, Lessor shall pay the net awards received by it
(whether by way of damages, rent or otherwise) by reason of such Taking to
Lessee within thirty (30) days of receipt of said award. If an Event of Default
shall have occurred, any such net award shall be retained by Lessor, to the
extent of the Event of Default (and allowable damages therefor). "Temporary
Use," as used in this Section 15.2, shall mean a Taking of the entire Leased
Property (or such a substantial portion of the Leased Property as would render
the balance unsuitable for Lessee's Permitted Use) for a period of up to one
hundred eighty (180) days.

         15.3 Other Taking; Damage or Destruction; Repair or Replacement.

             (a) Except as otherwise provided in Section 15.2 regarding
Temporary Use, Lessee shall have the option to terminate this Lease if, as a
result of any Taking (including a Taking of off-site improvements or access),
(i) the remaining leasable area of the Building is less than the Actual
Leaseable Area of the Building and cannot, within six (6) months from the
effective date of the Taking, be increased to the Actual Leaseable Area of the
Building solely with the use of the Net Award (as otherwise herein reduced)
which determination shall be made within forty five (45) days of the effective
date of the Taking; or (ii) in Lessee's sole and absolute discretion, the
Building is no longer suitable for the continued operation of Lessee's business
within six (6) months from the effective date of the Taking, solely with the use
of the Net Award which shall be determined within forty five (45) days of the
effective date of the Taking (as otherwise herein reduced). Lessee must exercise
such option by delivering written notice to Lessor (the "Taking Termination
Notice") not later than ninety (90) days after the effective date of such Taking
(which, for purposes hereof, shall mean the earlier of delivery of possession or
transfer of title to the condemning authority, unless, in the case of prior
transfer of title, Lessee is permitted to continue occupying the Leased Property
until delivery of possession) (the "Taking Termination Date").

             (b) In the event that Lessee delivers a Taking-Termination
Notice to Lessor then, the entire proceeds of any Taking and the right thereto
shall be assigned to and shall belong to Lessor and this Lease shall terminate
as of the Taking-Termination Date at which time the parties shall be released
from any and all obligations and liabilities arising up to and including the
Taking-Termination Notice.

             (c) Except as otherwise provided in Subsection (a) and (b)
hereof, in case of any damage to or destruction of the Leased Property or any
part thereof, or in case of any Taking other than for Temporary Use, Lessee will
promptly commence and complete with due diligence (subject to Unavoidable
Delays) the replacement and repair of the Leased Property in order to restore it
as nearly as practicable to the value and condition thereof immediately prior to
such

                                       31
<PAGE>   37

damage, destruction or Taking, provided Lessor or Lessor's Assignees has made
the insurance proceeds or condemnation award available to Lessee and such funds
are adequate to restore. In the event such funds are not adequate to restore the
Leased Property, Lessor may elect within forty five (45) days after the damage
or Taking to terminate this Lease unless Lessee agrees to provide the funds
necessary to complete repairs. If an Event of Default shall have occurred,
Lessor may, at its option, retain all or of any portion of net proceeds of
insurance and/or net awards for a Taking, to the extent of the Event of Default,
and any allowable damages therefrom. Upon completion of construction, Lessee
shall deliver to Lessor (i) a copy of a permanent, unconditional certificate of
occupancy for the Leased Property and (ii) an Officer's Certificate and a
certificate of an engineer or architect satisfactory to Lessor certifying to the
completion of the repair or replacement of the Leased Property, the payment of
the cost thereof in full, and the amount of such cost, and upon receipt of such
certificates by Lessor, any balance of such proceeds and awards or other
payments not required to be held or applied in accordance with the preceding
sentence, shall if no Event of Default shall have occurred, (1) in the case of
insurance proceeds, be paid over to, and retained by Lessee, and (2) in the case
of an award for a Taking, be paid over to Lessor. In the event of a Taking of
such character as not to require any repair or replacement of the Leased
Improvements, and upon delivery to Lessor of an Officer's Certificate certifying
that such partial Taking has not materially affected the condition or use of the
Leased Property, any net award or other payment for such Taking shall, if no
Event of Default shall have occurred, be paid over to Lessor. If an Event of
Default shall have occurred prior to the time of Lessor's receipt of any
insurance proceeds or awards or other payment for a Taking pursuant to this
Section, the same shall be applied in the manner specified in any Indenture.


                                   ARTICLE 16

         16.1 Intentionally Omitted.

                                   ARTICLE 17

         17.1 Events of Default. If any one or more of the following events
(individually, an "Event of Default") shall occur:

             (a) if Lessee shall fail to make payment of any Basic Rent or
Additional Rent payable by Lessee under this Lease within five (5) days of
Lessee's receipt of Lessor's written notice of such failure to pay; or

             (b) if Lessee shall fail to observe or perform any other
material term, covenant or condition of this Lease and such failure shall
continue for a period of thirty (30) days after written notice thereof to
Lessee, unless such failure cannot with due diligence be cured within a period
of thirty (30) days, in which case such failure shall not be deemed to continue
if Lessee proceeds promptly and with due diligence to cure the failure and
diligently completes the curing thereof; or


                                       32
<PAGE>   38




             (c) if Lessee or Lessee's Guarantor shall make a general
assignment for the benefit of its creditors, or shall file a voluntary petition
in bankruptcy, or shall be adjudicated a bankrupt or insolvent, or shall file
any petition or answer seeking, consenting to, or acquiescing in reorganization,
arrangement, adjustment, composition, liquidation, dissolution or similar relief
under any present or future statute, law or regulation, or shall file an answer
admitting or failing to deny the material allegations of a petition against it
for any such relief, or shall admit in writing its inability to pay its debts as
they mature; or

             (d) if any proceeding against Lessee or Lessee's Guarantor
seeking any of the relief mentioned in clause (c) of this Section shall not have
been stayed or dismissed within sixty (60) days after the commencement thereof;
or

             (e) if a trustee, receiver or liquidator of Lessee or Lessee's
Guarantor or of any substantial part of their respective properties or assets,
or of Lessee's estate or interest in the Leased Property shall be appointed with
the consent or acquiescence of Lessee, or if any such appointment, if not so
consented to or acquiesced in, shall remain unvacated or unstayed for a period
of sixty (60) consecutive days; or

             (f) if Lessee or Lessee's Guarantor shall be liquidated or
dissolved, or shall begin proceedings toward such liquidation or dissolution or
shall, in any manner, permit the divestiture of substantially all its assets;
provided that a liquidation or dissolution of Lessee or Lessee's Guarantor, or
the beginning of proceedings toward a liquidation or dissolution of Lessee or
Lessee's Guarantor, or the divestiture of substantially all the assets of Lessee
or Lessee's Guarantor, shall not be an Event of Default (i) with respect to
Lessee, if the survivor of such merger with Lessee or the purchaser of such
assets from Lessee shall assume all of Lessee's obligations under this Lease by
a written instrument, in form and substance reasonably satisfactory to Lessor
and Lessor's Assignees, if any, or by operation of law, and, if so long as
immediately after giving effect to any such merger or asset sale the Lessee or
other corporation (if not the Lessee) surviving the same shall have a
Consolidated Tangible Net Worth at least equal to the Consolidated Tangible Net
Worth of Lessee immediately prior to such merger or asset sale, or (ii) with
respect to Lessee's Guarantor, if the survivor of such merger with Lessee's
Guarantor or the purchaser of substantially all of the assets of Lessee's
Guarantor shall assume all of the obligations of Lessee's Guarantor under its
guaranty of this Lease by a written instrument, in form and substance reasonably
satisfactory to Lessor and Lessor's Assignees, if any, or by operation of law,
it hereby being expressly understood that in the event of a transaction
described in this clause (ii) there shall be no requirement that the surviving
Person of a merger with Lessee's Guarantor or purchaser of Guarantor's assets
have any specified level of Consolidated Tangible Net Worth. At the request of
Lessor, Lessee or Lessee's Guarantor, if applicable, shall deliver an opinion of
counsel, reasonably satisfactory to Lessor, stating that such instrument of
assumption is valid, binding and enforceable against the parties thereto in
accordance with its terms, subject to customary exceptions with respect to
enforceability; or

             (g) Intentionally Omitted.

             (h) Intentionally Omitted.


                                       33
<PAGE>   39





             (i) if any of the material representations or material
warranties made by Lessee in this Lease proves to be untrue in any material
respect; or

             (j) there shall be rendered against the Lessee or Lessee's
Guarantor a final judgment or decree in an amount in excess of Five Million and
No/100 Dollars ($5,000,000.00) and the Lessee, as the case may be, shall have
failed to satisfy such judgment or to appeal therefrom (or from the order,
decree or process pursuant to which such judgment was granted, passed, entered
or affirmed) and to obtain a stay of execution thereof within the period
prescribed by law for appeals, and to have such judgment discharged within sixty
(60) days after the expiration of such period or the period of any such stay,
whichever shall later expire; or

             (k) Any material report, certificate, financial statement or
other instrument delivered to Lessor by or on behalf of Lessee is false or
misleading in any material respect when made or delivered.

Upon an Event of Default, Lessor may, at its option and without limitation on
any other remedies available to it, (i) terminate this Lease by giving Lessee
written notice of such termination and upon the giving of such written notice,
the Term shall terminate and all unaccrued rights of Lessee under this Lease
shall cease, or (ii) to continue to enforce Lessee's obligation to pay Basic
Rent, Additional Rent, and all other sums due under this Lease (including such
amounts as may be due by reason of acceleration) without terminating this Lease.
Lessee will pay as Additional Rent all costs and expenses incurred by or on
behalf of Lessor, including, without limitation, reasonable attorneys' fees and
expenses, as a result of any Event of Default hereunder.

         17.2 Surrender; Entry by Lessor. If an Event of Default shall have
occurred, whether or not this Lease has been terminated pursuant to Section
17.1, Lessee shall, if required by Lessor so to do, immediately surrender the
Leased Property to Lessor and quit the same, and if permitted by applicable law,
Lessor may enter upon and repossess the Leased Property by reasonable force,
summary proceedings, ejectment or otherwise, and may remove Lessee and all other
Persons and any and all personal property from the Leased Property. Lessor shall
be under no liability for or by reason of any such entry, repossession or
removal. Notwithstanding anything contained in this Lease to the contrary,
Lessor agrees to comply with any forcible entry and detainer act prior to
entering the Leased Property.

         17.3 Reletting by Lessor. If an Event of Default shall have occurred,
whether or not this Lease has been terminated pursuant to Section 17.1, Lessor
shall use its best efforts to relet the Leased Property or any part thereof for
the account of Lessee, in the name of Lessee or otherwise, for such term or
terms (which may be greater or less than the period which would otherwise have
constituted the balance of the then current Term) and on such conditions (which
may include concessions or free rent) and for such purposes as Lessor may
determine, and may collect, receive and retain the rents resulting from such
reletting.

         17.4 Current Liquidated Damages. Neither (a) the termination of this
Lease pursuant to Section 17.1, (b) the repossession of the Leased Property,
(c) the failure of Lessor to relet the

                                       34
<PAGE>   40

Leased Property, nor (d) the reletting of all or any portion thereof, shall
relieve Lessee of its liability and obligations hereunder, all of which shall
survive any such termination, repossession or reletting. In the event of any
such termination, Lessee shall forthwith pay to Lessor all Rent due and payable
to and including the date of such termination. Thereafter, monthly on the days
on which the Basic Rent would have been payable under this Lease if the same had
not been terminated and until the end of what would have been the then current
Term in the absence of such termination, Lessee, at Lessor's option, shall pay
Lessor as and for liquidated and agreed current damages for Lessee's default:

             (a) an amount equal to the Basic Rent and Additional Rent that
would have been payable by Lessee hereunder if the Term had not been terminated,
less

             (b) the net proceeds, if any, of any reletting of the Leased
Property or any part thereof, after deducting all of Lessor's expenses in
connection therewith, including, without limitation, repossession costs,
brokerage commissions, attorneys' fees and expenses and any repair or alteration
costs and expenses incurred in connection with such reletting.

         17.5 Final Liquidated Damages. At any time after the termination of
this Lease pursuant to Section 17.1, whether or not Lessor shall have collected
any current damages pursuant to Section 17.4, Lessor, at its option, shall be
entitled to recover from Lessee and Lessee will pay to Lessor on demand as and
for liquidated and agreed final damages for Lessee's default (it being agreed
that it would be impractical or extremely difficult to fix the actual damages),
and in lieu of all current damages provided in Section 17.4 beyond the date to
which the same shall have been paid.

             (a) the sum of (i) any past due Rent together with interest
thereon (to the extent permitted by law) computed from the due date thereof to
the date of payment of all sums due and owing at the Overdue Rate (or at the
maximum rate permitted by law, whichever is the lesser), (ii) the remaining
payments of Basic Rent (which would otherwise have become due during the
remainder of the then current Term but for such termination) as of the later of
the date to which Basic Rent shall have been paid or the date to which Lessee
shall have paid current damages pursuant to Section 17.4 together with interest
thereon computed from the later of such dates to the date of payment of all sums
due and owing at the Overdue Rate, and (iii) an amount equal to the Additional
Rent and other charges (as reasonably estimated by Lessor) which would be
payable hereunder from such date for what would have been the then unexpired
current Term had the same not been terminated calculated on a quarterly basis,
less

             (b) the then fair net rental value of the Leased Property for
the period from the date of payment of such liquidated damages to the date which
would have been the then expiration date of the then current Term had this Lease
not been terminated (after deducting all reasonable estimated expenses to be
incurred in connection with reletting the Leased Property, including, without
limitation, repossession costs, brokerage commissions, attorneys' fees and
expenses and repair and alteration costs and expenses).


If any statute or rule of law shall validly limit the amount of such liquidated
final damages to less

                                       35
<PAGE>   41

than the amount above agreed upon, Lessor shall be entitled to the maximum
amount allowable under such statute or rule of law.

         17.6 Waiver. If this Lease is terminated pursuant to Section 17.1,
Lessee waives, to the extent permitted by applicable law, (a) any right which
may require Lessor to sell or otherwise divest its interest in the Leased
Property or any part thereof in mitigation of Lessor's damages as set forth in
this Article 17, (b) any notice of re-entry or of the institution of legal
proceedings to that end (provided, however, that Lessor shall comply with any
requirements with respect to forcible entry and detainer statutes), (c) any
right of redemption, re-entry or repossession, (d) any right to a trial by jury
with respect to the payment of any Basic Rent or Additional Rent in the event of
summary proceedings to enforce the remedies set forth in this Article 17, and
(e) any other rights which might otherwise limit or modify any of Lessor's
rights or remedies under this Article 17.1.

         17.7 Limitation on Damages. Notwithstanding anything contained in this
Lease to the contrary, Lessor and Lessee hereby waive any claim for
consequential, punitive, special or other extraordinary damages, it being agreed
that each party shall be limited to their respective actual damages, provided,
however, the foregoing shall not be deemed to preclude Lessor from receiving any
damages for a deficiency in rent resulting from a reletting of the Premises as
customarily calculated in the State, or to preclude Lessee from recovering the
amounts described at Section 7.6 and pursuant to the Offset and Recapture
Procedure hereof.

                                   ARTICLE 18

         18.1 Lessor's Right to Cure Lessee's Event of Default. If Lessee shall
fail to make any payment or perform any act required to be made or performed
under this Lease such that an Event of Default has occurred pursuant to Article
17, Lessor, and without waiving or releasing any obligation or Event of Default,
may (but shall be under no obligation to) at any time thereafter make such
payment or perform such act for the account and at the expense of Lessee, and
may enter upon the Leased Property for such purpose and take all such action
thereon as, in Lessor's opinion, may be necessary or appropriate therefor. No
such entry shall be deemed an eviction of Lessee. All sums so paid by Lessor and
all costs and expenses (including, without limitation, attorneys' fees and
expenses) so incurred, together with interest thereon (to the extent permitted
by law) at the Overdue Rate from the date on which such sums or expenses are
paid or incurred by Lessor, shall be paid by Lessee to Lessor on demand.


                                   ARTICLE 19

         19.1 Holding Over. If Lessee shall for any reason remain in possession
of the Leased Property after the expiration of the Term or earlier termination
of the Term hereof (except pursuant to the provisions of Section 6.2) with
Lessor's consent, such possession shall be as a month-to-month tenant during
which time Lessee shall pay as rental, (a) one and one-half (1.5) times the
monthly Basic Rent payable during the last year of the Term on the first day of
each

                                       36
<PAGE>   42

month, and (b) all Additional Rent and all other sums, if any, payable by Lessee
pursuant to the provisions of this Lease. Notwithstanding the foregoing, Basic
Rent payable at the expiration of the Term of this Lease shall not be increased
pursuant to the provisions of this Section 19.1 if Lessor and Lessee are, at the
time of the expiration of the Term, negotiating in good faith for a renewal of
this Lease. Either party shall have the right to terminate such negotiations by
delivering thirty (30) days' prior written notice to the other. During such
period of month-to-month tenancy, Lessee shall be obligated to perform and
observe all of the terms, covenants and conditions of this Lease but shall have
no rights thereunder other than the right to continue its occupancy and use of
the Leased Property. Nothing contained herein shall constitute the consent,
express or implied, of Lessor to the holding over of Lessee after the expiration
or earlier termination of this Lease. Lessor agrees to deliver thirty (30) days
notice to Lessee prior to the scheduled expiration date of the Term that Lessor
has a need for immediate possession of the Leased Property at the expiration of
the Term. Any claim for damages by Lessor (other than the increased Basic Rent
described above) resulting from such holdover shall be conditioned upon Lessor's
delivery of such notice to the extent the same is required by the provisions of
this Section 19.1.


                                   ARTICLE 20

         20.1 No Recourse to Lessor. No recourse shall be had against Lessor or
Lessor's Assignees, or its successors or assigns, or its employees, officers,
directors, shareholders or members for any claim based on any failure by Lessor
in the performance or observance of any of the agreements, covenants or
provisions contained in this Lease. In the event of any such failure, recourse
shall be had solely against the Leased Property. Nothing contained in the
foregoing, however, shall restrict the right of Lessee to commence any
proceeding against Lessor for the breach of its agreements or covenants
contained in this Lease; provided, however, that, in the event that any judgment
is obtained against Lessor, the same shall not be the basis of a right of
offset, deferment or reduction of the Rent due hereunder until the rendering of
a final non-appealable judgment.


                                   ARTICLE 21

         21.1 Risk of Loss. Except to the extent caused by Lessor's gross
negligence or willful misconduct, the risk of loss or of decrease in the
enjoyment and beneficial use of the Leased Property in consequence of the damage
or destruction thereof by fire, the elements, casualties, thefts, riots, wars or
otherwise, or in consequence of foreclosures, attachments, levies or executions
(other than by Lessor and those claiming from, through or under Lessor) is
assumed by Lessee, and Lessor shall in no event be answerable or accountable
therefor. None of the events mentioned in this Section shall entitle Lessee to
any abatement of Basic Rent or Additional Rent, except as specifically provided
herein.


                                       37
<PAGE>   43

                                   ARTICLE 22

         22.1 Indemnification by Lessee. Lessee will protect, indemnify, save
harmless and defend Lessor and Lessor's Assignees, if any, from and against all
liabilities, obligations, claims, damages, penalties, causes of action, costs
and expenses (including, without limitation, reasonable attorneys' fees and
expenses) imposed upon or incurred by or asserted against Lessor or any of
Lessor's Assignees, if any, by reason of: (a) the acquisition and ownership of,
or the holding of any security in, the Leased Property; (b) any accident, injury
to or death of persons or loss of or damage to property occurring on or about
the Leased Property or adjoining sidewalks, curbs, adjacent property or adjacent
parking areas, streets or ways; (c) any use, non-use or condition in, on or
about the Leased Property, or any part thereof or on the adjoining sidewalks,
curbs, adjacent property or adjacent parking areas, streets or ways; (d) any
Impositions; (e) any failure on the part of Lessee to perform or comply with any
of the terms of this Lease; (f) performance of any labor or services or the
furnishing of any materials or other property in respect of the Leased Property
or any part thereof, except to the extent performed by or at the direction of
Lessor; (g) the nonperformance of any of the terms and provisions of any and all
existing and future subleases of the Leased Property to be performed by the
Lessor thereunder; (h) except as provided in Article 11, the presence, disposal,
escape, seepage, leakage, spillage, discharge, emission, release, or threatened
release of any Hazardous Materials on, from, or affecting the Leased Property or
any other property; (i) except as provided in Article 11, any personal injury
(including wrongful death) or property damage (real or personal) arising out of
or related to such Hazardous Materials; (j) except as provided in Article 11,
any lawsuit brought or threatened, settlement reached, or governmental order
relating to such Hazardous Materials; or (k) except as provided in Article 11,
any violation of laws, orders, regulations, requirements or demands of
government authorities, which are based upon or in any way related to such
Hazardous Materials including, without limitation, the costs and expenses of any
remedial action, reasonable attorneys' and consultant's fees, investigation and
laboratory fees, court costs and litigation expenses. Any amounts which become
payable by Lessee under this Section shall be paid on demand, and if not timely
paid, shall bear interest (to the extent permitted by law) at the Overdue Rate
from the date of such final determination to the date of payment. Lessee, at its
expense, shall contest, resist and defend any such claim, action or proceeding
asserted or instituted against Lessor, or any of Lessor's Assignees, if any, and
may compromise or otherwise dispose of the same as Lessee sees fit. Nothing
herein shall be construed as indemnifying Lessor or Lessor's Assignees against
Lessor's grossly negligent acts or willful acts. Lessee's liability for a breach
of the provisions of this Section arising during the Term hereof shall survive
any termination of this Lease.


                                   ARTICLE 23

         23.1 Assignment. Lessee may assign or sublet ("Transfer") this
Lease, its interest in the Leased Property, or any of its rights or obligations
hereunder, without the prior written consent of Lessor, provided:

             (a) That such assignment or subletting shall in no manner
relieve Lessee or Lessee's Guarantor of any of the obligations undertaken by it
under this Lease; and

             (b) That Lessee provide written notice to Lessor of such Transfer
and, upon the


                                       38
<PAGE>   44

request of any Lessor's Assignee, Lessee will provide to such Lessor's Assignee
evidence of the assumption of the liability and continuing obligations of Lessee
hereunder.

         No such assignment, mortgage, pledge, hypothecation or transfer of this
Lease, sublease or any other relinquishment of possession or rights to any of
the Leased Property shall in any way discharge or diminish any obligations of
Lessee or Lessee's Guarantor to Lessor hereunder and Lessee and Lessee's
Guarantor shall remain directly and primarily liable, as principal rather than
as surety, for the prompt payment of the Rent and for the performance and
observance of all of the covenants and conditions contained in this Lease to be
performed by Lessee. Notwithstanding the foregoing, if Lessee proposes to
Transfer its interest in all or substantially all of the Building (which, for
purposes hereof, shall be deemed to be ninety percent (90%) or more of the
Building) in a single transaction, Lessor shall have the right, in its sole
discretion, to elect to (but shall not be obligated to) terminate this Lease
and to re-take possession thereof. In the event Lessor elects to terminate
this Lease, Lessee and Lessor's Guarantor shall be relieved of any liability
accruing from and after the effective date of such termination.

         23.2 Intentionally Omitted.

         23.3 Excess Rental. If Lessee assigns, subleases or otherwise
transfers its interest hereunder, Lessee shall in consideration therefor, pay to
Lessor, as Additional Rent:

             (a) in the case of an assignment, an amount equal to fifty
percent (50.0%) of all sums and other considerations paid to Lessee by the
assignee for or by reason of such assignment in excess of Basic Rent and
Additional Rent hereunder for the remainder of the Term as the same may be
extended pursuant to Article 32 below (for purposes of this calculation such
sums paid to Lessee shall not include sums paid for the sale of Lessee's
leasehold improvements, equipment, furniture, furnishings or other personal
property); and

             (b) in the case of a sublease, fifty percent (50.0%) of any
rents, additional charges or other consideration payable under the sublease to
Lessee by the subtenant which is in excess of the Basic Rent and Additional Rent
accruing during the term of the sublease in respect of the subleased space (at
the rate per square foot payable by Lessee hereunder) pursuant to the terms
hereof. Such amount shall not include sums paid for the sale or rental of
Lessee's leasehold improvements, equipment, furniture or other personal
property. The sums payable under this Section shall be paid to Lessor with
thirty (30) days of when such sums are received from subtenant.


                                   ARTICLE 24

         24.1 Lessor's Right to Inspect. Lessee shall permit Lessor and
Lessor's Assignees, if any, and their respective authorized representatives to
inspect the Leased Property during Lessee's usual business hours upon twenty-
four (24) hours prior written notice and to make such repairs, alterations,
additions or improvements as Lessor may deem necessary or desirable; and to
exhibit the Leased Property to prospective purchasers. Any such right of entry


                                       39
<PAGE>   45

made for the purposes of repairs, alterations, additions or improvements shall
be limited to two (2) such entries within any twelve (12) month period, so long
as (i) no Event of Default has occurred, requiring additional entries; (ii)
additional entries are not required with respect to the provisions of Section
8.2 of this Lease; and (iii) such limitation shall not apply in the event of
damage, destruction or emergency situations. Any entry by Lessor or Lessor's
Assignees shall be made in a manner that does not interfere with Lessee's
business operations. Notwithstanding anything contained herein to the contrary,
Lessor or Lessor's Assignees shall be liable for their respective gross
negligence or willful misconduct in connection with their access to the Leased
Property.

         24.2 Financial Statements. Lessee shall provide Lessor with
Lessee's Guarantor's audited financial statements (including but not limited to
balance sheets, income statements, and statements of changes in financial
position) at least annually, no later than March 31 for the prior year ended
December 31, and shall also provide quarterly audited financial statements (if
Lessee has quarterly audited statements prepared, and otherwise unaudited
quarterly financial statements) within ninety (90) days of the end of the prior
calendar quarter. Notwithstanding the foregoing, so long as Lessee's Guarantor
is publicly traded, Lessee shall not be required to comply with the provisions
of this Section 24.2.


                                   ARTICLE 25

         25.1 No Waiver by Lessor. No failure by Lessor to insist upon
the strict performance of any term hereof or to exercise any right, power or
remedy consequent upon a breach thereof, and no acceptance of full or partial
payment of Rent during the continuance of any such breach, shall constitute a
waiver of any such breach or of any such term. No waiver of any breach shall
affect or alter this Lease, which shall continue in full force and effect with
respect to any other then existing or subsequent breach. Subject to the terms of
any subordination, non-disturbance and attornment agreement entered into between
Lessee, any Lessor's Assignee and/or Lessor (which shall be in a form
substantially similar to Exhibit B), foreclosure, sale or other proceeding under
any Indenture shall not effectuate a termination of this Lease or discharge or
otherwise affect the obligations of Lessee hereunder.


                                   ARTICLE 26

         26.1 Remedies Cumulative. Each legal, equitable or contractual
right, power and remedy of Lessor now or hereafter provided either in this Lease
or by statute or otherwise shall be cumulative and concurrent and shall be in
addition to every other right, power and remedy and the exercise or beginning of
the exercise by Lessor of any one or more of such rights, powers and remedies
shall not preclude the simultaneous or subsequent exercise by Lessor of any or
all of such other rights, powers and remedies.





                                     40
<PAGE>   46

                                   ARTICLE 27

         27.1 Acceptance of Surrender. No surrender to Lessor of this
Lease or of the Leased Property or any part thereof or of any interest therein
shall be valid or effective unless agreed to and accepted in writing by Lessor
and no act by Lessor or any representative or agent of Lessor, other than such a
written acceptance by Lessor, shall constitute an acceptance of any such
surrender.


                                   ARTICLE 28

         28.1 No Merger of Title. There shall be no merger of this
Lease or of the leasehold estate hereby by reason of the fact that the same
Person may acquire, own or hold, directly or indirectly, (a) this Lease or the
leasehold estate created hereby or any interest in this Lease or such leasehold
estate and (b) the fee estate in the Leased Property or any interest therein.


                                   ARTICLE 29

         29.1 Conveyance by Lessor. If Lessor or any successor owner of
the Leased Property shall convey the Leased Property other than as security for
a debt, Lessor or such successor owner, as the case may be, shall thereupon be
released from all future liabilities and obligations of the Lessor under this
Lease and all such future liabilities and obligations shall thereupon be binding
upon the new owner, subject to the provisions of Article 21.

         Notwithstanding anything contained herein to the contrary, if
no uncured Event of Default pursuant to Section 17.1(a) is applicable then,
under no circumstances during the initial Term or any Extension Period of the
Lease shall Lessor engage in negotiations to sell or otherwise to transfer the
Leased Property to any Person engaged in the business of manufacturing, selling,
distributing, or otherwise relating to houseware products, pest control and
small animal care and control products, or pet products ("Competitor").


                                   ARTICLE 30

         30.1 Quiet Enjoyment. So long as no Event of Default exists,
Lessee shall peaceably and quietly have, hold and enjoy the Leased Property for
the Term hereof, free of any claim or other action by Lessor or Lessor's
Assignees, if any, or anyone claiming by, through or under any of them, but
subject to all liens and encumbrances of record.


                                   ARTICLE 31

         31.1 Notices. All notices, demands, requests, consents,
approvals and other communications hereunder shall be in writing and personally
delivered or couriered (by Federal Express or another reputable, national
overnight delivery service), addressed to the respective parties, as follows:


                                       41
<PAGE>   47

             (a) if to Lessee:             EKCO Housewares, Inc.
                                           9234 West Belmont Avenue
                                           Franklin Park, Illinois  60131-2808
                                           Attn:  President
                                           Fax (847) 678-8875

                 with a copy to:           EKCO Group, Inc.
                                           98 Split Brook Road
                                           Nashua, New Hampshire  03062-5738
                                           Attn: General Counsel
                                           Fax (603) 888-1427

                 and:                      Katten, Muchin & Zavis
                                           525 West Monroe Street
                                           Suite 1600
                                           Chicago, Illinois  60661-3693
                                           Attn: Barnett P. Ruttenberg, Esq.
                                           Fax (312) 577-8654

             (b) if to Lessor:             WILL PARTNERS, LLC
                                           c/o Griffin Capital
                                           3421 Manhattan Avenue
                                           Manhattan Beach, California 90026
                                           Attention:  Kevin A. Shields
                                           Fax (310) 546-7550

                 with a copy to:           Wildman, Harrold, Allen & Dixon
                                           225 West Wacker Drive
                                           Chicago, Illinois  60606-1229
                                           Attention:  Mary P. Higgins
                                           Fax (312) 201-2555

             (c) if to Contractor:         Kiferbaum Construction
                                           790 Estate Drive
                                           Deerfield, Illinois 60015
                                           Attn: Jacob Kiferbaum

                 and:                      Anderson and Associates
                                           1250 Larkin Avenue
                                           Suite 100
                                           Elgin, Illinois 60123
                                           Attn: Mike Anderson


or to such other address as either may hereafter designate, and shall be
effective upon receipt as evidenced by a receipt signed by a Person at such
address authorized to accept delivery, or upon


                                       42
<PAGE>   48


refusal to accept delivery.

         31.2 Amendments and Modifications. Neither this Lease nor any provision
hereof may be amended, waived, discharged or terminated except by an instrument
in writing signed by Lessor and Lessee.

         31.3 Successors and Assigns. All the terms and provisions of this Lease
shall inure to the benefit of the parties hereto and their respective successors
and permitted assigns.

         31.4 Headings and Table of Contents. The headings and table of contents
in this Lease are for convenience of reference only and shall not limit or
otherwise affect the meaning hereof.

         31.5 Counterparts. This Lease may be executed in any number of
counterparts, each of which shall be an original, but all of which shall
together constitute one and the same instrument.

         31.6 Governing Law. THIS LEASE SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE.

         31.7 Estoppel Certificates. Within twenty (20) days of the request of
the other party, either party will execute, acknowledge and deliver to the other
party a certificate stating (a) that this Lease is unmodified and in full force
and effect (or, if there have been modifications, that this Lease is in full
force and effect as modified, and setting forth such modifications), (b) the
dates to which Rent and other sums payable hereunder have been paid, and (c)
either that to the knowledge of the party no default of Event of Default exists
under this Lease or specifying each such default or Event of Default of which
the party has knowledge.

         31.8 Subordination and Attornment.

             (a) Simultaneous with the execution of this Lease by Lessor,
Lessor shall cause the Subordination and Non-disturbance Agreement in the form
of Exhibit B to be executed by all then current ground lessors and holders of
all Indentures. In such case, this Lease is subject to and subordinate to all
ground leases and Indentures which affect the Land or the Leased Property and
which are of public record as of the date Lessor acquires title to the Land, and
to all renewals, modifications, consolidations, replacements and extensions
thereof. However, if the lessor under any such ground lease or any of Lessor's
Assignees shall advise Lessor that it desires or requires this Lease to be made
prior and superior thereto, then, within twenty (20) days of written request of
Lessor to Lessee, Lessee shall promptly execute, acknowledge and deliver any and
all customary or reasonable documents or instruments which Lessor and such
lessor or Lessor's Assignee deems necessary or desirable to make this Lease
prior thereto. Lessee hereby consents to Lessor's ground leasing the Land and/or
encumbering the Leased Property as security for future loans on such terms as
Lessor shall desire, all of which future ground leases or Indentures shall be
subject to and subordinate to this Lease. However, if any lessor under any such
future ground lease or any Lessor's Assignee holding or offering to hold such
future mortgage or deed of trust shall desire or require that this Lease be made
subject to and subordinate to such future ground


                                       43
<PAGE>   49

lease, mortgage or deed of trust then Lessee agrees, within twenty (20)
days after Lessor's written request therefor, to execute, acknowledge and
deliver to Lessor any and all documents or instruments requested by Lessor or
by such ground lessor or Lessor's Assignee as may be necessary or proper to
assure the subordination of this Lease to such future ground lease or
Indenture, but only if such lessor or Lessor's Assignee agrees to recognize
Lessee's rights under this Lease and agrees not to disturb Lessee's quiet
possession of the Leased Premises in an instrument substantially in the form of
Exhibit B. If Lessor assigns the Lease as security for a loan, Lessee agrees to
execute such documents as are reasonably requested by the Lessor's Assignee and
to provide reasonable provisions in the Lease protecting the security interest
of such Lessor's Assignee which are customarily required by institutional
lenders making loans secured by a deed of trust. Without limiting the
foregoing, Lessee hereby approves the form of Subordination, Non-Disturbance
and Attornment Agreement attached hereto as Exhibit B.

             (b) In addition, as a condition of any future subordination of
this Lease, any holder of a future Indenture or ground lease on the Leased
Property shall enter into a subordination, non-disturbance and attornment
agreement, in a form substantially similar to that attached hereto as Exhibit B.

         31.9 Lessee's Attornment Upon Foreclosure. Lessee shall, upon request,
attorn (i) to any purchaser of the Leased Property at any foreclosure sale or
private sale conducted pursuant to any Indenture encumbering the Leased
Property, (ii) to any grantee or transferee designated in any deed given in lieu
of foreclosure of any security interest encumbering the Leased Property, or
(iii) to the lessor under an underlying ground lease of the Land, should such
ground lease be terminated; provided that such purchaser, grantee or lessor is
not Competitor of Lessee and such Purchaser, grantee or lessor recognizes
Lessee's rights under this Lease, and has previously entered into the
subordination, non-disturbance and attornment agreement with Lessee contemplated
in Section 31.8(b) above.

         31.10 Submission To Jurisdiction; Waivers. Each of the parties hereto
hereby irrevocably and unconditionally:

             (a) submits for itself and its property in any legal action or
proceeding relating to this Lease and the other Operative Agreements to which it
is a party, or for recognition and enforcement of any judgment in respect
thereof, to the exclusive general jurisdiction of the courts of the United
States of America for the Northern District of Illinois, Eastern Division or the
Circuit Court of Will County, Illinois, and the applicable appellate courts;

             (b) consents that any such action or proceeding may be brought
in such courts and waives any objection that it may now or hereafter have to the
venue of any such action or proceeding in any such court or that such action or
proceeding was brought in an inconvenient court and agrees not to plead or claim
the same;

             (c) agrees that service of process in any such action or
proceeding may be effected by mailing a copy thereof by registered or certified
mail (or any substantially similar form


                                       44
<PAGE>   50

of mail) postage prepaid, to such party at its address set forth in Section 31.1
or at such other address of which the parties hereto shall have been notified
pursuant thereto; and

             (d) agrees that nothing herein shall affect the right to
effect service of process in any other manner permitted by Law.

         31.11 Waivers of Jury Trial. TO THE EXTENT PERMITTED BY APPLICABLE LAW,
THE LESSOR AND THE LESSEE HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY
JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THE PAYMENT OF ANY BASIC RENT
AS ADDITIONAL RENT PURSUANT TO THIS LEASE OR OTHER PAYMENTS DUE PURSUANT TO ANY
OTHER OPERATIVE AGREEMENT TO WHICH SUCH ENTITY IS A PARTY AND FOR ANY
COUNTERCLAIM THEREIN.

         31.12 Miscellaneous. Anything contained in this Lease to the contrary
notwithstanding, all claims against, and liabilities of, the Lessee and Lessor
arising prior to any date of termination of this Lease shall survive such
termination. If any term or provision of this Lease or any application thereof
shall be invalid or unenforceable, the remainder of this Lease and any other
application of such term or provision shall not be affected thereby. Neither
this Lease nor any provision hereof may be changed, waived, discharged or
terminated except by an instrument in writing signed by Lessor, Lessee and
Lessor's Assignees, if any. All the terms and provisions of this Lease shall be
binding upon and inure to the benefit of the parties hereto and their respective
successors and assigns. The headings in this Lease are for convenience of
reference only and shall not limit or otherwise affect the meaning hereof. This
Lease shall be governed by and construed in accordance with the laws of the
State.

         31.13 Memorandum of Lease. Lessor and Lessee shall, promptly upon the
request of either, enter into a short form memorandum of this Lease, in the form
of Exhibit D attached hereto, signed by Lessor and Lessee and otherwise in
recordable form, which memorandum shall then be recorded in the applicable
public records in the county where the Land is located and/or in the public
records of the State.

         31.14 Brokers. Lessor (i) represents and warrants that it has had no
dealings with any broker or agent in connection with this Lease other than Brett
Broaddus at Alliance Commercial ("Broker"), whose commission shall be paid by
Lessor; (ii) represents and warrants that to the best of its knowledge, that
Broker is not receiving any other compensation with respect to the acquisition
of the Leased Property; and (iii) covenants to hold harmless and indemnify and
defend Lessee from and against any and all cost, expense, or liability for any
compensation, commissions, or damages claimed by any brokers or other agents
with respect to this Lease or the obligations thereof other than Broker. Lessor
represents and warrants to Lessee that the only commission and/or amount paid or
payable to Broker by Lessor or any affiliate of Lessor in connection with this
Lease and transaction is $1,000,000.00.

              Lessee (i) warrants that it has had no dealings with any
broker or agent in connection with this Lease other than Broker, whose
commission shall be paid by Lessor; and


                                       45
<PAGE>   51


(ii) covenants to hold harmless and indemnify Lessor from and against any and
all cost, expense, or liability for any compensation, commissions, or damages
claimed by any brokers or other agents with respect to this Lease or the
obligations thereof other than Broker.


                                   ARTICLE 32

         32.1 Options To Extend Term. So long as Lessee occupies at least
seventy five percent (75%) of the Leased Improvements, and subject to the
condition set forth in clause (b) below, Lessee shall have two options to extend
the term of this Lease with respect to the entirety of the Leased Property on
all of the terms, covenants and conditions of this Lease (each an "Extension
Option"), the first for a period of five (5) years from the expiration of the
fifteenth (15th) full year of the Lease Term (the "First Extension Period"), and
the second (the "Second Extension Period") for a period of five (5) years from
the expiration of the First Extension Period, subject to the following
conditions:

             (a) Each Extension Option shall be exercised, if at all, by
notice of exercise given to Lessor by Lessee not more than sixty (60) days after
receipt of the final written determination of the Fair Market Rent for the
applicable Extension Period (each a "Rent Notice"). The determination of the
Fair Market Rent shall only be given by Lessor to Lessee simultaneous with the
delivery to Lessee by Lessor of the determination of the FMV of the Leased
Property being given pursuant to Section 34 of this Lease;

             (b) Anything herein to the contrary notwithstanding, if an
Event of Default by Lessee has occurred, either at the time Lessee exercises
either extension option or on the commencement date of the First Extension
Period or the Second Extension Period, as applicable, Lessor shall have, in
addition to all of Lessor's other rights and remedies provided in this Lease,
the right to terminate such option(s) to extend upon notice to Lessee.

         32.2 Rent. Not more than fifteen (15) months or less than twelve (12)
months prior to the (i) expiration of Lease Term or (ii) the expiration of the
First Extension Period, as applicable, Lessor shall give Lessee written notice
of Lessor's determination of the then current Fair Market Rent (hereinafter
defined) for the Leased Property. Notwithstanding anything contained herein, if
Lessor fails to provide the final determination of Fair Market Rent to Lessee
within the time frame specified herein, then the Lease shall continue at the
then applicable Basic Rent until Lessor fulfills its obligations pursuant to
this Article 32 and (i) Lessee elects to exercise its option, (ii) Lessee elects
to terminate the Lease with such termination becoming effective, at Lessee's
option, (a) as of the scheduled expiration date of the then current term or (b)
twelve (12) months from the date of Lessee's receipt of the Rent Notice, or
(iii) Lessee elects to exercise its purchase option contained herein.

         32.3 Fair Market Rent. "Fair Market Rent" shall be determined as
follows: At least fifteen (15) months prior to the expiration of the Lease Term
or the first Extension Period, as applicable, Lessor shall deliver to Lessee
the proposed Basic Rent for such first Extension Period or second Extension
Period, as applicable. Such amount shall be based on a current Fair Rental

                                       46
<PAGE>   52


Market Analysis performed by a licensed real estate broker of Lessor's choosing.
Within ten (10) business days following receipt of Lessor's proposed Basic Rent,
Lessee shall give Lessor written notice of a disagreement, if any, as to the
Basic Rent based upon an analysis of the current Fair Market Rental Value of the
Leased Property that is less than that determined by Lessor's broker, whereupon
Lessee and Lessor shall jointly select a third licensed real estate broker to
determine the current Fair Market Rental Value of the Leased Property. Within
sixty (60) days after the designation of the third broker, each of the three
brokers shall submit their written determination of the Fair Market Rent of the
Leased Property in accordance with this section to both Lessor and Lessee. If
the Fair Market Rent of the Leased Property is determined by any two or all
three of such brokers is identical, then the Fair Market Rent for purposes of
the Extension Option shall be such identical amount. If the Fair Market Rent as
determined by each such broker is different from the others, but two of such
determinations are within five percent (5%) of each other, then the rent
pursuant the Fair Market Rent shall be the arithmetic mean of the such two
amounts. In all other cases, the highest and lowest of such determination shall
be disregarded and the Fair Market Rent shall be equal to the middle, or
remaining, determination. Notwithstanding anything contained herein to the
contrary, the determination of the Fair Market Rent shall not include the square
footage of the Expansion Area or the improvements on the Expansion Area
constructed by Lessee at Lessee's sole cost and expense.

         Lessor shall pay all costs associated with the broker designated by
Lessor, and Lessee shall pay all costs associated with the broker designated by
Lessee. Lessor and Lessee shall share equally all costs associated with the
third broker.


                                   ARTICLE 33

         33.1 Contingencies. Notwithstanding anything herein contained to the
contrary, and notwithstanding any other agreement between Lessor, Lessee and any
third party, Lessor and Lessee shall each have the right to terminate this Lease
with no obligation of either to the other or any third party whatsoever, in the
event the "Threshold Contingencies" set forth below are not satisfied on or
before June 15, 1999. The "Threshold Contingencies" are the following:

             (i) intentionally omitted.

             (ii) Lessor's Lender has executed all loan documentation to
evidence and secure the mortgage loan, copies of which shall be delivered to
Lessee for Lessee's review and that all inducement materials, contingencies,
opinions and any other item required by such Lender to make the mortgage loan
have been satisfied or waived.

             (iii) Lessor has purchased the Land and has delivered to
Lessee, evidence thereof including, without limitation, a leasehold title
insurance commitment in the form of Exhibit F. Lessee shall be responsible for
the cost of the premium for such leasehold title insurance.

             (iv) The Lessor's Lender and Lessee and to the extent
required, the Lessor, have entered into a Subordination, Non-disturbance and
Attornment Agreement, in recordable form


                                       47
<PAGE>   53

attached hereto as Exhibit B.

             (v) intentionally omitted.

             (vi) intentionally omitted.

             (vii) Lessee shall have received satisfactory evidence of the
guaranty of Kevin A. Shields of the obligation of Lessor with respect to the
Delay Costs.

         In the event any of the Threshold Contingencies do not occur on or
before June 15, 1999, then either party shall have the right, within its sole
and absolute discretion, to terminate this Lease by written notice to the other
given on or before June 19, 1999. The parties acknowledge that notices given
pursuant to the terms of this section may be given by the attorneys for the
applicable parties. Lessor covenants to use its best efforts to cause the
satisfaction of the Threshold Contingencies.


                                   ARTICLE 34

         34.1 Fair Market Value Purchase Option. So long as no Event of Default
exists, Lessee is hereby granted the following rights and options to purchase
the Leased Property for a purchase price equal to the Leased Property's Fair
Market Value, as defined below (the "FMV").

             (a) The option exercise price shall equal the FMV of the Leased
Property as of the applicable option exercised. FMV is defined as the price at
which the Leased Property could be sold by a person who desires, but is not
required to sell, and is sought by a person who desires, but who is not required
to buy, after due consideration of all the elements reasonably affecting value
provided that in no event shall the FMV be less than the Exit Purchase Price, as
defined below. For purposes of determining the FMV of the Leased Property,
Lessor and Lessee shall within ten (10) days of FMV Determination Notice each
designate an independent real estate appraiser duly licensed in the State and
having not less than ten (10) years experience appraising commercial properties
in the area of the Leased Property and shall notify each other in writing of
such designation. Within the next ten (10) days, such appraisers shall designate
a third independent real estate appraiser with the same credentials and
reasonably acceptable to both Lessor and Lessee and shall notify Lessor and
Lessee of such designation. After their appointment, all three such appraisers
shall be directed to determine, independently, the FMV of the Leased Property.
Within sixty (60) days after the designation of the third appraiser, each of the
three appraisers shall submit their written determination of the FMV of the
Leased Property in accordance with this section to both Lessor and Lessee. If
the FMV of the Leased Property is determined by any two or all three of such
appraisers is identical, then the FMV for purposes of the Purchase Option shall
be such identical amount. If the FMV as determined by each such


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<PAGE>   54


appraiser is different from the others, but two of such determinations are
within five percent (5%) of each other, then the purchase price pursuant the FMV
Purchase Option shall be the arithmetic mean of the such two amounts. In all
other cases, the highest and lowest of such determination shall be disregarded
and the FMV shall be equal to the middle, or remaining, determination.
Notwithstanding anything contained herein to the contrary, the determination of
the FMV shall not include the square footage of the Expansion Area or the
improvements on the Expansion Area constructed by Lessee at Lessee's sole cost
and expense.

                 Lessor shall pay all costs associated with the appraiser
designated by Lessor, and Lessee shall pay all costs associated with the
appraiser designated by Lessee. Lessor and Lessee shall share equally all costs
associated with the third appraiser.

             (b) For purposes hereof, "Exit Purchase Price" shall mean an amount
equal to the sum of (a) the principal balance of any Lessor's Indenture due at
the closing of Lessee's acquisition of the Leased Property; (b) any exit,
defeasance, prepayment, yield maintenance, or other fees or penalties resulting
from deficience or prepayment of such Lessor's Indenture (it being agreed that
(a) and (b) above shall be adjusted as required to account for differences
between the estimated date of closing and the actual date of closing of the sale
to Lessee); and (c) the then current amount, if any, of Lessor's equity in the
Leased Property arising as a result of any decrease in the FMV of the Leased
Property.

             (c) Each Purchase Option shall be exercised, if at all, by notice
of exercise given to Lessor by Lessee not more than sixty (60) days after
receipt of the final determination of the FMV for the applicable purchase option
(each a "FMV Determination Notice").


             (d) In the event the Lessee exercises a Purchase Option the
transfer of the Leased Property shall be consummated effective as of the last
day of the then applicable Term of this Lease and Lessor shall convey to Lessee
title to the property free and clear of all liens, covenants or exceptions to
title except as are set forth on Exhibit F hereto and which may have been
previously approved by Lessee in writing if not set forth on Exhibit F hereto.
Lessee and Lessor shall execute such documents as are required by Legal
Requirements and/or which are then customarily executed in the conveyance of
property of the nature of the Leased Property in the Village. Lessor and Lessee
shall prorate all rent and other charges due under this Lease to the day of
closing, Lessor shall be responsible for the payment of all state and county
transfer or conveyance taxes as well as the cost to deliver to Lessee a title
insurance policy in the amount of the purchase price with all premiums paid at
closing and with such endorsements as are provided for in Section 33 hereof.


                                   ARTICLE 35

         35.1 Expansion Rights. Lessee, at Lessee's sole cost and expense, shall
have the option to expand the Building (the "Expansion") in accordance with
expansion plans to be approved by Lessor pursuant to the procedures set forth in
Section 7.3(b) hereof in the area marked on Exhibit


                                       49
<PAGE>   55


A attached hereto (the "Expansion Area"). Following the approval of the plans by
Lessor, no further approval of Lessor or Lessor's Assignees shall be required,
provided there are no material changes to such plans or changes that adversely
affect the structure of the Building. All construction of the Expansion shall be
equal or better in quality than the original construction of the Building; and
Lessee shall obtain warranties from all contractors and materialmen comparable
to the warranties obtained by Lessor in connection with the original
construction of the Building. All work for the Expansion shall be completed in a
lien free manner, subject to the Right of Lessee to contest any lien as provided
for elsewhere in this Lease, and subject to written confirmation that any
Indenture of Lessor's Assignee remains a first lien on the Leased Property. No
additional Basic Monthly Rent shall be payable to Lessor as a result of Lessee's
construction of the Expansion, however upon completion of the Expansion, the
same shall be included as part of the Building for all other purposes of this
Lease, with the exception of Lessor's obligations under Article VII and the
provisions of Section 4.6 hereof.


                                   ARTICLE 36

         36.1 Cash Flow Distribution Agreement. This Lease is being executed
simultaneously, and in conjunction, with a Cash Flow Distribution Agreement
between the Manager of Lessor and Lessee.


                                   ARTICLE 37

         37.1 First Source Agreement. In connection with the Redevelopment
Agreement between Lessor and Village, and as an exhibit thereto, is a document
entitled "First Source Agreement". Lessee agrees to comply with the First Source
Agreement to the extent applicable to Lessee, consistent with Lessee's
collective bargaining agreement and employment polices, including without
limitation, retention policies and such other factors as are generally
prevailing with respect to Lessee's employment practices and provided Lessee has
no obligation to hire any employee at a wage rate greater than Lessee would
otherwise pay.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]



                                       50
<PAGE>   56



         IN WITNESS WHEREOF, the parties have caused this Lease to be executed.

                       LESSOR:

                       WILL PARTNERS LLC, a Delaware limited liability company

                       By:  Will Acquisitions, LLC, a Delaware limited
                            liability company



                            By:  KEVIN A. SHIELDS
                                 -----------------------------------
                                 Kevin A. Shields, Managing Member



                       LESSEE:

                       EKCO Housewares, Inc., a Delaware corporation



                       By:    /S/JOHN JAY ALTHOFF
                       -----------------------------------
                       Printed Name:    John Jay Althoff
                       -----------------------------------
                       Title: Vice President and Secretary
                       -----------------------------------




                                       51




<PAGE>   57


                                    EXHIBIT A
                       LEGAL DESCRIPTION OF REAL PROPERTY


THE EAST 750.00 FEET OF THE SOUTH 2010.00 FEET OF THAT PART OF THE SOUTHEAST
QUARTER OF SECTION 20, IN TOWNSHIP 34 NORTH IN RANGE 13 EAST OF THE THIRD
PRINCIPAL MERIDIAN, LYING WEST OF THE WEST LINE OF HELLMAN'S SUBDIVISION AS
ORIGINALLY PLATTED, ACCORDING TO THE PLAT THEREOF RECORDED SEPTEMBER 19, 1899,
AS DOCUMENT NO. 204312, IN MAP BOOK 11, PAGES 27 AND 28 (EXCEPTING THEREFROM
THAT PART OF THE SOUTHEAST QUARTER OF SAID SECTION 20 LYING EAST OF THE WEST
LINE OF SAID LOT 3 PROJECTED SOUTH, SOUTH OF THE SOUTH LINE OF SAID LOT 3, WEST
OF THE WEST LINE OF LOT 4 IN SAID HELLMAN'S SUBDIVISION AND NORTH OF THE NORTH
LINE OF LOT 5 IN SAID HELLMAN'S SUBDIVISION; AND ALSO EXCEPTING A STRIP OF LAND
DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHWEST CORNER OF SAID LOT 3; THENCE
SOUTH ALONG THE WEST LINE OF SAID LOT 3 AND SAID LINE PROJECTED SOUTH A DISTANCE
OF 614.35 FEET; THENCE WEST ALONG A LINE AT RIGHT ANGLES TO THE LAST NAMED LINE
A DISTANCE OF 20.0 FEET; THENCE NORTH ALONG A LINE 20 FEET WEST OF AND PARALLEL
TO THE WEST LINE OF SAID LOT 3 AND SAID LINE PROJECTED SOUTH A DISTANCE OF
594.36 FEET TO A POINT OF CURVE; THENCE NORTHERLY AND EASTERLY ALONG A CURVE
CONVEX TO THE NORTHWEST AND HAVING A RADIUS OF 20.0 FEET TO THE POINT OF
BEGINNING), ALL IN WILL COUNTY, ILLINOIS.


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