<PAGE>

                                                                    EXHIBIT 10.9

                           INDUSTRIAL BUILDING LEASE

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
            DATE OF LEASE                            TERM OF LEASE                         MONTHLY RENT
---------------------------------------------------------------------------------------------------------------------
October             , 1996                  BEGINNING               ENDING
                                            10/01/96               09/30/03          See paragraph R2 of Rider
---------------------------------------------------------------------------------------------------------------------
<S>                                         <C>                    <C>               <C>
Location of Premises:
Suites A, B and C
12301 New Avenue, Lemont, Illinois
---------------------------------------------------------------------------------------------------------------------
Purposes:
Performing Early Stage Pharmaceutical R&D
---------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
   LESSEE                                                           LESSOR
<S>              <C>                                             <C>               <C>
NAME             Medichem Research, Inc., an Illinois            NAME AND          Roth's Reliable Construction Co.,
                 corporation                                     BUSINESS          Inc., an Illinois corp. as agent
                                                                                   for Standard Bank and Trust as
                                                                                   Trustee under Trust No. 53

ADDRESS          12305 New Avenue                                ADDRESS           13501 S. Hickey
                 Lemont, Illinois 60439                                            Lemont, Illinois 60439
</TABLE>

     In consideration of the mutual covenants and agreements herein stated,
Lessor hereby leases to Lessee and Lessee hereby leases from Lessor solely for
the above purpose the premises designated above (the "Premises"), together with
the appurtenances thereto, for the above Term.

RENT                         1. Lessee shall pay Lessor or Lessor's agent as
                      rent for the Premises the sum stated above, monthly in
                      advance, until termination of this lease, at Lessor's
                      address stated above or such other address as Lessor may
                      designate in writing.

CONDITION AND                2.  Lessee has examined and knows the condition of
UPKEEP OF PREMISES    the Premises and has received the same in good order and
                      repair, and acknowledges that no representations as to the
                      condition and repair thereof have been made by Lessor, or
                      his agent, prior to or at the execution of this lease that
                      are not herein expressed; Lessee will keep the Premises
                      including all appurtenances, in good repair, replacing all
                      broken glass with glass of the same size and quality as
                      that broken, and will replace all damaged plumbing
                      fixtures with others of equal quality, and will keep the
                      Premises, including adjoining alleys, in a clean and
                      healthful condition according to the applicable municipal
                      ordinances and the direction of the proper public officers
                      during the term of this lease at Lessee's expense, and
                      will without injury to the roof, remove all snow and ice
                      from the same when necessary, and will remove the snow and
                      ice from the sidewalk abutting the Premises; and upon the
                      termination of this lease, in any way, will yield up the
                      Premises to Lessor, in good condition and repair, loss by
                      fire and ordinary wear excepted, and will deliver the keys
                      therefor at the place of payment of said rent.

LESSEE NOT TO                3.  Lessee will not allow the Premises to be used
MISUSE; SUBLET;       for any purpose other than that hereinbefore specified,
ASSIGNMENT            and will not load floors with machinery or goods beyond
                      the floor load rating prescribed by applicable municipal
                      ordinances, and will not allow the Premises to be occupied
                      in whole, or in part, by any other person, and will not
                      sublet the same or any part thereof, nor assign this lease
                      without in each case the written consent of the Lessor
                      first had, which shall not be unreasonably withheld or
                      delayed, and Lessee will not permit any transfer by
                      operation of law of the interest in the Premises acquired
                      through this lease, and will not permit the Premises to be
                      used for any unlawful purpose, or for any
<PAGE>

                         purpose that will injure the reputation of the building
                         or increase the fire hazard of the building, or disturb
                         the tenants or the neighborhood, and will not permit
                         the same to remain vacant or unoccupied for more than
                         ten consecutive days; and will not allow any signs,
                         cards or placards to be posted, or placed thereon, nor
                         permit any alteration of or addition to any part of the
                         Premises, except by written consent of Lessor; all
                         alterations and additions to the Premises shall remain
                         for the benefit of Lessor unless otherwise provided in
                         the consent aforesaid.

MECHANIC'S LIEN              4.  Lessee will not permit any mechanic's lien or
                      liens to be placed upon the Premises or any building or
                      improvement thereon without the written consent of Lessor
                      during the term hereof, and in case of the filing of such
                      lien Lessee will promptly pay same. If default in payment
                      thereof shall continue for thirty (30) days after written
                      notice thereof from Lessor to the Lessee, the Lessor shall
                      have the right and privilege at Lessor's option of paying
                      the same or any portion thereof without inquiry as to the
                      validity thereof, and any amounts so paid, including
                      expenses and interest, shall be so much additional
                      indebtedness hereunder due from Lessee to Lessor and shall
                      be repaid to Lessor immediately on rendition of bill
                      therefor.

INDEMNITY FOR                5.  Lessee covenants and agrees that he will
ACCIDENTS             protect and save and keep the Lessor forever harmless and
                      indemnified against and from any penalty or damages or
                      charges imposed for any violation of any laws or
                      ordinances, whether occasioned by the neglect of Lessee or
                      those holding under Lessee, and that Lessee will at all
                      times protect, indemnify and save and keep harmless the
                      Lessor against and from any and all loss, cost, damage or
                      expense, arising out of or from any accident or other
                      occurrence on or about the Premises, causing injury to any
                      person or property whomsoever or whatsoever and will
                      protect, indemnify and save and keep harmless the Lessor
                      against and from any and all claims and against and from
                      any and all loss, cost, damage or expense arising out of
                      any failure of Lessee in any respect to comply with and
                      perform all the requirements and provisions thereof.

NON-LIABILITY OF             6.  Except as provided by Illinois statute, Lessor
LESSOR                shall not be liable for any damage occasioned by failure
                      to keep the Premises in repair, nor for any damage done or
                      occasioned by or from plumbing, gas, water, sprinkler,
                      steam or other pipes or sewerage or the bursting, leaking
                      or running of any pipes, tank or plumbing fixtures, in,
                      above, upon or about Premises or any building or
                      improvement thereon nor for any damage occasioned by
                      water, snow or ice being upon or coming through the roof,
                      skylights, trap door or otherwise, nor for any damages
                      arising from acts or neglect of any owners or occupants of
                      adjacent or contiguous property.

WATER, GAS AND               7.  Lessee will pay, in addition to the rent above
ELECTRIC CHARGES      specified, all water rents, gas and electric light and
                      power bills taxed, levied or charged on the Premises, for
                      an during the time for which this lease is granted, and in
                      case said water rents and bills for gas, electric light
                      and power shall not be paid when due, Lessor shall have
                      the right to pay the same, which amounts so paid, together
                      with any sums paid by Lessor to keep the Premises in a
                      clean and healthy condition, as above specified, are
                      declared to be so much additional rent and payable with
                      the installment of rent next due thereafter and shall be
                      generally treated as rent for all purposes of this
                      Agreement.

KEEP PREMISES IN             8.  Lessor shall not be obliged to incur any
REPAIR                expense for repairing any improvements upon said demised
                      premises or connected therewith, and the Lessee at his own
                      expense will keep all improvements in good repair (injury
                      by fire, or other causes beyond Lessee's control excepted)
                      as well as in a good tenantable and wholesome condition,
                      and will comply with all local or general regulations,
                      laws and ordinances applicable thereto, as well as lawful
                      requirements of all competent authorities in that behalf.
                      Lessee will, as far as possible, keep said improvements
                      from deterioration due to ordinary wear and from falling
                      temporarily out of repair. If

                                      -2-
<PAGE>

                      Lessee does not make repairs as required hereunder
                      promptly and adequately, Lessor may but need not make such
                      repairs and pay the costs thereof, and such costs shall be
                      so much additional rent immediately due from and payable
                      by Lessee to Lessor.

ACCESS TO PREMISES           9.   Lessee will allow Lessor free access to the
                      Premises for the purpose of examining or exhibiting the
                      same, or to make any needful repairs, or alterations
                      thereof which Lessor may see fit to make and will allow to
                      have placed upon the Premises at all times notice of "For
                      Sale" and "To Rent", and will not interfere with the same.

ABANDONMENT AND              10.  If Lessee shall abandon or vacate the
RELETTING             Premises, or if Lessee's right to occupy the Premises be
                      terminated by Lessor by reason of Lessee's breach of any
                      of the covenants herein, the same may be re-let by Lessor
                      for such rent and upon such terms as Lessor may deem fit;
                      and if a sufficient sum shall not thus be realized
                      monthly, after paying the expenses of such re-letting and
                      collecting to satisfy the rent hereby reserved, Lessee
                      agrees to satisfy and pay all deficiency monthly during
                      the remaining period of this lease.

HOLDING OVER                 11.  Lessee will, at the termination of this lease
                       by lapse of time or otherwise, yield up immediate
                       possession to Lessor, and failing so to do, will pay as
                       liquidated damages, for the whole time such possession is
                       withheld, the sum of Three Hundred Fifty Dollars
                       ($350.00) per day; but the provisions of this clause
                       shall not be held as a waiver by Lessor of any right of
                       re-entry as hereinafter set forth; nor shall the receipt
                       of said rent or any part thereof, or any other act in
                       apparent affirmance of tenancy, operate as a waiver of
                       the right to forfeit this lease and the term hereby
                       granted for the period still unexpired, for a breach of
                       any of the covenants herein.

EXTRA FIRE HAZARD            12.  There shall not be allowed, kept, or used on
                       used on the Premises any inflammable or explosive liquids
                       or materials save such as may be necessary for use in the
                       business of the Lessee, and in such case, any such
                       substances shall be delivered and stored in amount, and
                       used, in accordance with the rules of the applicable
                       Board of Underwriters and statutes and ordinances now or
                       hereafter in force.

NO RENT REDUCTION            13.  Lessee's covenant to pay rent is and shall be
OR SET OFF             independent of each and every other covenant of this
                       lease. Lessee agrees that any claim by Lessee against
                       Lessor shall not be deducted from rent nor set off
OR SUIT                against any claim for rent in any action.

RENT AFTER NOTICE            14.  It is further agreed, by the parties hereto,
                       that after the service of notice, or the commencement of
                       a suit or after final judgment for possession of the
                       Premises, Lessor may receive and collect any rent due,
                       and the payment of said rent shall not waive or affect
                       said notice, said suit, or said judgment.

PAYMENT OF COSTS             15.  Lessee will pay and discharge all reasonable
                       costs, attorney's fees and expenses that shall be made
                       and incurred by Lessor in enforcing the covenants and
                       agreements of this lease

RIGHTS CUMULATIVE            16.  The rights and remedies of Lessor under this
                       lease are cumulative. The exercise or use of any one or
                       more thereof shall not bar Lessor from exercise or use of
                       any other right or remedy provided herein or otherwise
                       provided by law, nor shall exercise nor use of any right
                       or remedy by Lessor waive any other right or remedy.

FIRE AND CASUALTY            17.  In case the Premises shall be rendered
                       untenantable during the term of this lease by fire or
                       other casualty, Lessor at his option may terminate the
                       lease or repair the Premises within 60 days thereafter.
                       If Lessor elects to repair, this lease shall remain in
                       effect provided such repairs are completed within said
                       time. If Lessor shall

                                      -3-
<PAGE>

                       not have repaired the Premises within said time, then at
                       the end of such time the term hereby created shall
                       terminate. If this lease is terminated by reason of fire
                       or casualty as herein specified, rent shall be
                       apportioned and paid to the day of such fire or other
                       casualty.

SUBORDINATION                18.  This lease is subordinate to all mortgages
                       which may now or hereafter affect the Premises.

PLURALS;                     19.  The words "Lessor" and "Lessee" wherever
SUCCESSORS             herein occurring and used shall be construed to mean
                       "Lessors" and "Lessees" in case more than one person
                       constitutes either party to this lease; and all the
                       covenants and agreements contained shall be binding upon,
                       and inure to, their respective successors, heirs,
                       executors, administrators and assigns and may be
                       exercised by his or their attorney or agent.

INTERPRABILITY               20.  Wherever possible each provisions of this
                       lease shall be interpreted in such manner as to be
                       effective and valid under applicable law, but if any
                       provision of this lease shall be prohibited by or invalid
                       under applicable law, such provision shall be ineffective
                       to the extent of such prohibition or invalidity, without
                       invalidating the remainder of such provision or the
                       remaining provisions of this lease.

                             21.  Rider attached hereto is incorporated herein.

                             22.  Lessee acknowledges that Lessor has
                       approximately 4.6 acres of property, upon which Lessee's
                       building shall be erected, and that Lessee shall, in no
                       way, interfere with Lessor's ability and right to utilize
                       rent, sell, dispose of, assign, or otherwise encumber or
                       affect the property that is not leased to Lessee.

                             23.  Lessee herein agrees to reimburse Lessor for
                       any and all special binders, endorsements and other
                       modifications and additions to Lessor's Owners Insurance
                       Policy that are directly attributable to Lessee's
                       business and shall generally be treated as additional
                       rent and additional insurance reimbursement for all
                       purposes of this agreement.


     If this instrument is executed by a corporation, such execution has been
authorized by a duly adopted resolution of the Board of Directors of such
corporation.

     This lease consists of ______ pages numbered 1 to ______, including a rider
consisting of _____ pages, identified by Lessor and Lessee.

     IN WITNESS WHEREOF, the parties hereto have executed this instrument as of
the Date of Lease stated above.

<TABLE>
<S>                                               <C>
LESSEE:  Medichem Research, Inc., an              LESSOR:  Roth's Reliable Construction Co., Inc., an
         Illinois corporation                              Illinois corporation as Agent for
                                                           Standard Bank & Trust, Under Trust No. 5310

______________________________________(SEAL)      _______________________________________________(SEAL)

______________________________________(SEAL)      _______________________________________________(SEAL)
</TABLE>

                                      -4-
<PAGE>

                              ASSIGNMENT BY LESSOR

       On this ________________________, 20___, for value received, Lessor
hereby transfers, assigns and sets over to _________________________ all right,
title and interest in and to the above Lease and the rent thereby reserved,
except rent due and payable prior to _____________, 20__.


                                  ___________________________(SEAL)


                                  ___________________________(SEAL)



                                   GUARANTEE

     On this _____________________, 20___, in consideration of Ten Dollars
($10.00) and other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, the undersigned Guarantor hereby guarantees the
payment of rent and performance by Lessee, Lessee's heirs, executors,
administrators, successors or assigns of all covenants and agreements of the
above Lease.


                                  ___________________________(SEAL)


                                  ___________________________(SEAL)


                                      -5-
<PAGE>

                RIDER TO THAT CERTAIN INDUSTRIAL BUILDING LEASE
                         DATED AS OF OCTOBER ___, 1996
            BY AND BETWEEN ROTH'S RELIABLE CONSTRUCTION CO., INC.,
              AS AGENT FOR STANDARD BANK AND TRUST, TRUST #5310,
               AS LESSOR AND MEDICHEM RESEARCH, INC., AS LESSEE
                    FOR SUITES A, B AND C, 12301 NEW AVENUE

     R-1       Conflicts.  In the event of a conflict between the terms of this
               ---------
Rider and printed lease form to which it is attached, the terms of this Rider
shall control.

     R-2       Payment of Rent.
               ---------------

     (a)       Lessee shall pay monthly base rent to Lessor in advance on the
first day of each month. In the event that any installment of rent shall not be
paid within ten (10) days of the due date, Lessee shall pay to Lessor a late
payment penalty in the amount of 5% of the installment of rent.

     (b)       The amount of rent to be paid hereunder shall be as follows:

                          Monthly:           Amount Due:   $8,750.00

     (c)       The first month's rent shall be due and payable on the
Commencement Date of this Lease.

     (d)       In addition to the monthly rent due under this Lease, Lessee
agrees to pay promptly when due as additional rent hereunder, its share of the
increase in real estate taxes beginning in October, 1998, over the Base Year's
real estate taxes for the Premises. Lessee shall also pay its share of all
special assessments or governmental impositions and charges of every kind and
nature levied or assessed on the Premises or any part thereof. For the purposes
of this subparagraph, the Base Year shall be the taxes paid in 1998 on a cash
basis and the share of real estate taxes due from Tenant shall be based on the
square footage of the Building on the Premises, divided by fifty percent (50%).
Lessee shall pay all utility charges to the Premises which include, but are not
limited to, charges and assessments for water, gas, fuel, electric, and refuse
disposal services, for each calendar year falling within the term, Lessor shall
notify Lessee of the time and place payment to the relevant government
authorities is required. In addition, Lessee shall pay its pro-rata share of the
cost of the common maintenance of the exterior lighting, well, and aerobic
filtration plant.

               In addition to the monthly rent due under this Lease, Lessee
               agrees to pay promptly when due as additional rent hereunder, its
               share of the cost and expense for insurance premiums for the
               Premises. Lessor shall notify Lessee when payment of its share of
               the insurance premiums are required.

               If the Lessee defaults in the payment of its share of any
               imposition, charge or insurance premium, as required in this
               Subparagraph and such default continues for thirty (30) days
               after written notice, Lessor or its agent may pay such imposition
               or charge and the amount so paid plus interest at the then
               current prime rate charged by First National Bank of Chicago,
               shall be deemed additional rent hereunder payable on demand. Such
               payment by Lessor shall not constitute a waiver of Lessee's
               default nor of Lessor's rights hereunder. The provisions of this
               Subparagraph shall survive the termination of this Lease.

     R-3       Security Deposit. The parties agree that there shall be no
               ----------------
security deposit under this Lease.

     R-4       Premises. A Legal Description of the Premises is attached hereto
               --------
as Exhibit A, incorporated herein. Lessee acknowledges and agrees that it shall
only have the right to the use and possession of the building and the
immediately adjacent parking lot and sidewalks and shall have no rights to any
other portion of the land upon which Premises is located.
<PAGE>

     R-5       Lessee's Business. Lessor generally knows and generally has a
               -----------------
layman's understanding of the nature of Lessee's business, namely, to carry out
chemical synthesis in a laboratory setting. The synthesis include but are not
limited to the use of hazardous and/or flammable chemical compounds. The use and
storage of these materials will be in conformance with all federal, state and
local laws, regulations and ordinances. Lessor further understands that Lessee
will seek to make improvements to the space in the form of chemical wet
laboratories. These laboratories will be constructed in accordance with any and
all pertinent laws, regulations and codes, whether federal, state, local,
municipal or any governmental arm or agency thereunder. Lessor will not seek to
limit Lessee in regard to its business operations and expansion as long as said
business operations and expansions are in accordance with all federal, state and
local laws, regulations and ordinances and does not create a nuisance to other
interested parties or tenants.

     R-6       Insurance. Lessee shall reimburse Lessor for the cost to procure
               ---------
and maintain in full force and effect, the following insurance in respect of the
Premises, all of which insurance shall be issued in the name of Lessor and
Lessee and with loss payable clauses thereof in favor of Lessor or Lessee as
their interests may appear. Each party shall provide the other with copies of
all policies procured hereunder and paid receipts therefor within ten (10) days
after the term begins and after the beginning of each renewal term.

     Lessor shall obtain Insurance against loss by fire and all other casualties
by standard fire and extended coverage (especially, but not exclusively covering
loss or damage by windstorm, hail, explosion, riot, civil commotion, or damage
from aircraft or vehicles and smoke damage) with standard vandalism and
malicious mischief riders, and endorsement for one (1) year's rent (including
expenses) loss insurance covering losses due to casualty in responsible
insurance companies for the full replacement value of the improvements of which
the Premises are a part. Lessor shall be compensated for the loss of abated rent
by having the proceeds of rent insurance paid to the Lessor. All policies of
insurance shall waive subrogation against Lessor and Lessee and shall remain
with Lessor and shall be issued in the name of Lessor, with a loss payable
clause in favor of Lessor and with a deductible of no more than $10,000.00.
Lessor and Lessee waive and release any claims against each other for losses due
to fire or other casualty, or other perils insured by standard policies for
extended coverage, vandalism, and malicious mischief. Lessor reserves the right
to have a standard non-contributory mortgage clause in said policy.

     Lessee shall obtain at its expense:

     (a)       Public Liability or Owner, Landlord and Tenant Liability
insurance with minimum limits of $1,000,000.00 for injury or death to any one
person, $2,000,000.00 for injury to more than one person resulting from the same
occurrence and $500,000.00 for damage to property, which policy shall name
Lessor as an additional named insured;

     (b)       Any insurance covering risks which at the time are reasonably
required to be covered by investors or mortgage lenders with respect to the
Premises and which are customarily obtained in the Chicago Metropolitan area for
buildings such as the subject building.

     Lessee shall be responsible for reimbursing Lessor for the deductible
portions of any policy to be provided hereunder, it being the agreement of the
parties that the Lessor be fully covered for all amounts, including any
deductible. Copies of the Certificate of Insurance showing Lessor as an
additional named insured on the liability policy shall be delivered to Lessor.

     Lessee shall also obtain in its own name insurance on all of Lessee's
contents and trade fixtures, machinery, equipment, furniture and furnishings in
the Premises to the full extent of their replacement cost under standard fire
and extended coverage insurance, including without limitation, vandalism and
malicious mischief endorsements.

     Lessor shall maintain the fire and casualty insurance on the Premises and
the building in which the Premises is located in such amounts and with such
insurance carriers as Lessor deems appropriate. Lessor and Lessee acknowledge
that Lessee has received a statement as to Lessor's current insurance coverage.
Lessor shall obtain and maintain such insurance required to be maintained by
this Lease without waiving any of Lessor's rights under this Lease and Lessor's
damages for Lessee's failure or refusal shall not be limited to the amount of
the insurance premiums which the Lessee has failed to pay. Sums advanced by
Lessor, or its agent, for premiums

                                       2
<PAGE>

together with interest thereon at the current prime rate of interest charged by
First National Bank of Chicago shall be deemed additional rent payable on
demand. If Lessee is not in default upon the termination of this Lease, Lessee
shall then be entitled to a refund of the then unearned insurance premiums, if
any. All insurance policies shall provide that the insurance companies issuing
them shall not cancel them for nonpayment of premiums or otherwise without first
giving the Lessee and Lessor at least thirty (30) days prior written notice of
cancellation. In the event Lessee fails to obtain and maintain the insurance
required to be obtained by Lessee hereunder, Lessor may, but shall not be
required to, obtain and maintain the same and the cost of such insurance plus
interest shall be additional rent due hereunder.

     R-7       A.   Right of First Refusal.
                    ----------------------

     (1)       Lessee generally acknowledges that Lessor owns a parcel of
approximately 4.6 acres upon which the Leased Premises are located, and may
elect to sell all, or a portion or portions of the 4.6 acre parcel in the future
without limitation or restriction.

     (2)       Should Lessor receive and accept an offer from a third party for
the purchase of the entire 4.6 acre parcel, or any such small portion(s) thereof
upon which the Leased Premises is located, during the term and duration of this
Lease, Lessor shall inform the offering party, in writing and as part of the
acceptance, that such acceptance is contingent and subject to a right of first
refusal on the part of the Lessee.

     (3)       In the event that Section R-7(a)(2) occurs, Lessor shall provide
Lessee with a written "Notice of Right of First Refusal" and a copy of the third
party offer for the purchase of the entire 4.6 acre parcel, or any such small
portion(s) thereof as may be dictated by the third party offer. Lessee shall
have five (5) business days from receipt of "Notice of Right of First Refusal"
to exercise its right of first refusal. For purposes of this section only,
written notice of the offer shall be deemed effective to the Lessee on the date
delivered to Lessee at the subject premises by Lessee by Messenger delivery or
telefax. A fax transmission confirmation report or written evidence regarding
Messenger Delivery shall control regarding the date said "Notice of Right of
First Refusal" is received by Lessee.

     (4)       Should Lessee elect to exercise its right of first refusal within
said five (5) business day period, and in any event, no later than 5:00 p.m. on
the fifth business day after receipt of the "Notice of Right of First Refusal",
it must deliver such written notice of its exercise of the right of first
refusal, including its agreement to be bound to the Lessor on the same terms and
conditions as is stated in the offer between the third party and the Lessor.
Once said written notice is received by the Lessor, said written notice of
Lessee's exercise of the right of first refusal cannot be revoked or cancelled.

     (5)       Unless Lessee delivers timely written notice to Lessor of its
exercise of its right of first refusal as required in R-7(A)(4), its right of
first refusal shall be completely and irrevocably waived and shall cease to have
any further effect, whether legal, equitable or otherwise.

     B.        Lessee's Representation and Warranty Regarding Water Waste
               ----------------------------------------------------------
Disposal.
--------

     (1)       Lessee shall only allow water waste from sink and toilet to be
drained into existing well/septic system. All other liquid drainage, whether
from laboratory sinks, basins, or other items utilized in the Lessee's
laboratory process, shall be removed by Lessee, at Lessee's sole expense, via a
licensed and certified hazardous/toxic/chemical waste or special waste removal
service.

     (2)       Lessee acknowledges that technological advances may, during the
term of this Lease, allow for complete purification of lab related waste so as
to allow the same to be discharged in accordance with any and all applicable
federal, state, and local laws, statutes, codes, regulations and ordinances.
Therefore, Section R-7(b)(1) may be amended, upon the written mutual consent of
Lessor and Lessee, to allow for the utilization of newer waste treatment
technologies, which shall be installed at the sole expense of Lessee.

     R-8       Default.
               -------

                                       3
<PAGE>

     (a)       The occurrence of any one or more of the following events shall
constitute a default by Lessee hereunder.

                         If Lessee shall be adjudged bankrupt, or a decree or
                         order approving, and properly filed, a petition or
                         answer asking for reorganization of Lessee under the
                         Federal bankruptcy laws as now or hereafter amended, or
                         under the laws of any State, shall be entered, and any
                         such decree or judgement or order shall not have been
                         vacated or stayed or set aside within sixty (60) days
                         from the date of the entry or granting thereof.

                         If Lessee shall file or admit the jurisdiction of a
                         court and the material allegations contained in any
                         petition in bankruptcy, or any petition pursuant or
                         purporting to be pursuant to the Federal bankruptcy
                         laws as now or hereafter amended, of Lessee shall
                         institute any proceedings or shall give its consent to
                         the institution of any proceedings for any relief of
                         Lessee under any bankruptcy or insolvency laws or laws
                         relating to the relief of debtors, readjustments of
                         indebtedness, reorganization, arrangements, composition
                         or extensions.

                         If Lessee shall make any assignment for the benefit of
                         creditors or shall apply for or consent to the
                         appointment of a receiver for Lessee or any of the
                         property of Lessee.

                         If a decree or order appointing a receiver of the
                         property of Lessee shall be made and such decree or
                         order shall not have been vacated, stayed or set aside
                         within sixty (60) days from the date of entry or
                         granting thereof.

                         If Lessee shall vacate or abandon the Premises during
                         the term hereof.

                         If Lessee shall not pay all amounts which constitute
                         monthly rent hereunder (including but not limited to
                         the payment of taxes), when due as herein provided and
                         such non-payment shall continue for a period of 5 days
                         thereafter.

                         If Lessee shall make default in any of the other
                         covenants and agreements herein contained to be kept,
                         observed and performed by Lessee, including but not
                         limited to the certain Environmental Indemnity
                         Agreement, and such default shall continue for a period
                         of 20 days after written notice of such default;
                         provided however, that Lessee shall have such
                         additional time as is reasonably required to cure such
                         default.

                         If Lessee shall default under the terms and provisions
                         of any other Lease Agreement which Lessee has with
                         Lessor for other properties owned by Lessor.

     (b)       Upon any default of Lessee hereunder, Lessor may, in addition to
all other rights and elections provided in the Lease and all other legal or
equitable remedies or damages provided by law, at its election, declare the term
of the Lease ended and, either with or without process of law, reenter,
repossess and forfeiture of the rents to be paid and the covenants to be
performed by Lessee during the terms of the Lease. If default shall be made in
any covenant or agreement herein contained to be kept, observed and performed by
Lessee, other than the payment of all amounts which constitute rent as herein
provided, and if Lessee, prior to the expiration of a period of twenty (20) days
commences to eliminate the cause of such default and does so cure such default,
then Lessor shall not have the right to declare the said term ended by reason of
such default; provided, however, that the curing of any default in such manner
shall not be construed to limit or restrict the right of Lessor to declare the
said term ended and enforce all of its rights and remedies hereunder for any
other default not so cured.

                                       4
<PAGE>

     (c)       The foregoing provisions for the termination of the Lease for any
default in any of its covenants, shall not operate to exclude or suspend any
other remedy of Lessor for breach of any of said covenants or for the recovery
of said rent or any advance of Lessor made thereon, and in the event of
termination of the Lease as aforesaid, Lessee agrees to indemnify and save
harmless Lessor from any loss, cost or expenses arising from such termination
and reentry in pursuance thereof.

     R-9       Lessee's Alterations.  Lessee's current occupancy of the Premises
               --------------------
is in accordance with a pre-existing Lease. No work is required by Lessee at
this time. Roth shall be provided with the opportunity to bid on any and all
further interior buildout work. Furthermore, any and all tenant buildout work
not performed by Roth shall be subject to Roth's prior approval with such
approval not being unreasonably withheld. Additionally, plans for any
construction work within the subject premises including all drawings, sketches,
layouts and designs shall be tendered to Roth before construction begins for
Roth's approval. Lessee shall not make any "Lessee's Alterations" without the
prior written consent of Lessor, which consent shall not be unreasonably
withheld. Lessee's Alterations shall be made at Lessee's sole cost and expense.
As used herein, the term "Lessee's Alterations" shall mean each and every (a)
demolition of the whole or any part of any improvement now or hereafter erected
on the Premises; (b) excavation at any time made or to be made in or about the
Premises; (c) repair, addition, betterment, change, improvement and rebuilding
made of, to, in, on or about the Premises or any part thereof; and (d)
construction of any additional improvements upon the Premises.

     It shall be a condition precedent to Lessor's consent that Lessee furnish
in writing to Lessor, a description of the work to be done at least twenty (20)
days prior to the commencement of any Lessee's Alterations. It shall be a
further condition precedent to Lessor's approval of any Lessee's Alterations
that there shall be no written notice of default hereunder.

     Before any Lessee's Alterations are begun, Lessee shall procure at its sole
cost and expense, all necessary licenses, permits and inspections from all
governmental authorities or agencies having jurisdiction over the Premises, and
shall, upon demand, deliver photostatic copies thereof to Lessor. All Lessee's
Alterations shall be made in compliance with all laws, rules, regulations,
ordinances promulgated by any state, local or other governmental body having
jurisdiction over the Premises. Lessee shall pay all costs, expenses and
liabilities arising out of or in connection with, or by reason of any Lessee's
Alterations and shall keep the Premises free and clear from all liens, claims,
encumbrances in any way arising out of, or in connection with or by reason of
any Lessee's Alterations. No Lessee's Alterations shall be made that would
render title to the Premises or any part thereof valued as of the termination of
the Lease unmarketable or which would reduce the value of the Premises. Lessor
shall not be required to make any contribution to the cost of any Lessee's
Alterations or any part thereof. Lessee covenants that Lessor shall not be
required to pay any cost, expense or liability arising out of or in connection
with or by reason of any of Lessee's Alterations and shall indemnify and hold
Lessor harmless from and against and shall reimburse Lessor for all costs,
expenses and liabilities, including reasonable attorneys' fees. All Lessee's
Alterations as well as repairs to the Premises made pursuant to any provision
hereof shall be removed by Lessee or at the option of the Lessor become the
property of Lessor at the expiration of the Lease and title thereto and
possession thereof shall automatically vest in Lessor, without the necessity of
Lessee executing any further instrument particularly granting, conveying or
releasing the same and without necessity of any payment therefor by Lessor,
except if Lessor so elects all improvements by Lessee shall be removed by Lessee
at the termination of the Lease, without destruction of or non-repairable damage
to the Premises.

     R-10      Maintenance. Lessee shall pay all maintenance costs associated
               -----------
with its own interior improvements to the building.

     Roth shall be responsible to the extent it deems necessary for exterior
landscaping and shall provide reasonable snowplowing services for the benefit of
the Lessee. Roth will be responsible for all maintenance, operation and repair
expenses to roof, shall plumbing, exterior walls, windows, foundations,
sidewalks, HVAC (excepting for utility charges which are the responsibility of
Lessee), provided the same are not due to Lessee's, its agents, employees,
guest, licenses, and invitees, negligence, willful or wanton misconduct acts or
omissions.

     R-11      Place of Payment of Rent. All rent payable to Lessor shall be
               ------------------------
paid by Lessee to Lessor at Lessor's address specified herein, or to such other
person and/or at such other address as Lessor may direct by notice to Lessee in
such coin or currency of the United States of America as at the time of payment
shall be legal tender for

                                       5
<PAGE>

the payment of public or private debts. Except as specifically provided herein,
Rent shall be paid without notice or demand.

     R-12      Mechanic's Liens.  Lessee shall not create or permit to be
               ----------------
created or to remain and shall discharge any lien, encumbrance or charge levied
on account of any imposition or any mechanic's, laborer's or material men's lien
or mortgage, deed or trust or otherwise which is not being contested in good
faith by Lessee by proper proceedings and which might or does constitute a lien,
encumbrance or charge upon the Premises, or any part thereof, or the income
therefrom and Lessee will not suffer any other matter or thing whereby the
estate, right, interest of Lessor in the Premises or any part thereof might be
impaired. If any mechanic's, laborer's or materialmen's lien shall at any time
be filed against the Premises or any part thereof, Lessee, within thirty (30)
days after notice of the filing thereof, shall cause the same to be discharged
of record or otherwise stayed by payment, deposit, bond, order of a court of
competent jurisdiction or otherwise. If Lessee shall fail to contest by proper
proceeding or cause such lien to be discharged within such time period, then, in
addition to any other right or remedy, Lessor may, but shall not be obligated to
procure the discharge of such lien by deposit or by bonding proceedings and in
such event Lessee shall immediately pay the amount of such cost or expense to
Lessor as Additional Rent, hereunder, which amount shall be refundable upon
completion and satisfaction of the lien proceedings.

     R-13      Surrender.  Lessee shall and will, upon the expiration of this
               ---------
Lease, or upon any re-entry by Lessor upon the Premises pursuant to the terms of
this Lease: (i) surrender and deliver up the Premises into the possession and
use of Lessor without delay, broom clean and in good order and condition and
repair, free and clear of all lettings and occupancy and free and clear of all
liens, charges and encumbrances, in the same condition as existed on the date
hereof, and, at the request of Lessor, shall remove all Lessee's Alterations, if
any.

     R-14      Compliance with Laws.  Lessee, at its sole cost and expense,
               --------------------
shall promptly comply with all present and future statutes, codes, laws, acts,
ordinances, administrative and judicial orders, judgments, decrees, injunctions
and decisions, rules, resolutions, restrictions, regulations and requirements of
all federal, state, county, municipal and local governments, and all courts,
departments, commissions, boards, bureaus, agencies, authorities, officials and
offices thereof have or claiming jurisdiction overall or any part of the
property or the use, operation or occupancy thereof.

     R-15      Waiver of Liabilities.  To the full extent permitted by law,
               ---------------------
Lessee hereby releases and waives all claims against Lessor and its agents and
employees for in jury or damage for person, property or business sustained in or
about the Premises or the property by Lessee, its employees, agents, servants,
invitees, licensees or subtenants.

     R-16      Mutual Waiver of Subrogation Rights.  Whenever (a) any loss,
               -----------------------------------
cost, damage, or expense resulting from fire, explosion, or any other casualty
or occurrence is incurred by either of the parties to this Lease in connection
with the Premises, and (b) such party is then covered in whole or in part by
insurance with respect to such loss, cost, damage or expense, then the party so
insured hereby releases the other party from any liability it may have on
account of such loss, cost, damage, or expense to the extent of such amount
recovered by reason of such insurance and waives any right of subrogation which
might otherwise exist in or accrue to any person on account thereof, provided
that such release of liability and waiver of the right of subrogation shall not
be operative in any case where the effect thereof is to invalidate such
insurance coverage or increase the cost thereof.

     R-17      Late Charge.  In the event any installment of Rent or Additional
               -----------
Rent is not paid on the due date thereof, Lessee shall pay to Lessor a late
charge, which shall be deemed to be Additional Rent hereunder, in an amount
equal to five percent (5%) of the amount of Rent or Additional Rent which was
not timely paid hereunder. This late charge shall be payable each and every
calendar month or part thereof thereafter until such Rent or Additional Rent is
paid.

     R-18      Applicable Law and Construction.  The laws of the State of
               -------------------------------
Illinois shall govern the validity, performance and enforcement of this Lease.
The invalidity or unenforceability of any provision of this Lease shall not
affect or impair any other provision. The headings of the several articles
contained herein are for convenience only and do not explain, define, limit,
amplify, aid in the interpretation, construction or meaning of the provisions of
this Lease.

                                       6
<PAGE>

     R-19      Binding Effect of Lease.  The covenants, agreements and
               -----------------------
obligations herein contained except as herein otherwise specifically provided,
shall extend to, bind and inure to the benefit of the parties hereto and their
respective personal representatives, heirs, successors and assigns. Lessor, at
any time and from time to time, may make an assignment of its interest in this
Lease, and, in the event of such assignment and the assumption by the assignee
of the covenants and agreements to be performed by Lessor herein, Lessor and its
successors and assigns (other than the assignee of this Lease) shall be released
from any and all liability hereunder.

     R-20      Title.  The title to the Premises is held in a land trust of
               -----
which Standard Bank and Trust Company is the trustee under a Trust Agreement
dated August 9, 1991, and known as Trust No. 5310.

     R-21      Brokerage.  The parties hereto represent and warrant to each
               ---------
other that they have not had any dealing with any real estate broker, salesman,
agent, finder or consultant in connection with the transaction contemplated
hereby and agree to indemnify and hold harmless the other against any claims for
commissions, fees, etc.

     R-22      Notice.   Except as provided in R-7 above, any notice, request,
               ------
demand or consent required or permitted to be given under this Agreement shall
be in writing and shall be effective when delivered personally or when mailed,
first class, postage prepaid, certified or registered mail, return receipt
requested, as follows:

     If to Lessee:                  Medichem Research, Inc.
                                    12305 New Avenue
                                    Lemont, IL 60546
                                    Attention: John L. Flavin
                                    Fax Number: 630/257-1505

     With a copy to:                _______________________________________
                                    _______________________________________
                                    _______________________________________

     If to Lessor:                  Roth's Reliable Construction Co., Inc.
                                    13501 S. Hickory
                                    Lemont, Illinois 60439
                                    Attention:  Jack Roth, President
                                    Fax Number: 630/257-3584

     With a copy to:                Robert D. Tuerk, Esq.
                                    Pretzel & Stouffer, Chartered
                                    One S. Wacker Drive, Ste. 2500
                                    Chicago, Illinois 60606
                                    Fax Number: 312/346-8242

Any party hereto may change its address by giving notice in accordance with this
paragraph stating its new address to each of the other parties hereto.
Commencing with the giving of such notice, such newly designated address shall
be said party's address for purposes of all notices or other communications
required or permitted to be given pursuant to this Agreement.

     R-23      Option to Renew.   Provided the Lessee is not in default under
               ---------------
the Lease, the Lessee is granted the option of renewing this Lease for an
additional five (5) year term from October 1, 2003, provided it gives the Lessor
notice in writing of the exercise of the option at least one hundred eighty
(180) days prior to the expiration of the Lease. If Lessee exercises such option
to renew then the Base Rental during the Renewal Period shall be Ten Dollars and
00/100 ($10.00) a square foot per annum on 37,500 square feet, payable monthly
in advance, plus taxes, insurance and all other expenses of Lessee hereunder.
The exercise of the option shall be irrevocable. All conditions and covenants of
the Lease shall remain in full force and effect during the extended period,
except that the monthly rent shall be the then agreed upon increased rent for
the Premises.

                                       7
<PAGE>

     R-24      Cancellation of Prior Lease.  Provided Lessee has entered into a
               ---------------------------
valid and binding Lease Agreement for Suites K, L and O, 12305 New Avenue, in
Building 4 owned by Lessor, this Agreement shall terminate the prior Lease
Agreement dated February, 1995 for the Premises subject to this Lease, effective
September 30, 1996. As of October 1, 1996, the terms and provisions of this
Lease shall be binding on the parties.

     R-25      Environmental Indemnification.  The parties have executed an
               -----------------------------
Environmental Indemnity Agreement simultaneously with the Lease, which Agreement
is incorporated herein by reference.

     IN WITNESS WHEREOF, the parties hereto have executed this Lease as of the
day and year first above written.

LESSOR:                                           LESSEE:

ROTH'S RELIABLE CONSTRUCTION CO.,                 MEDICHEM RESEARCH, INC.
INC., an Illinois corporation, as beneficiary
and agent of Standard Bank and Trust Company
Trust No. 5310, u/a/d August 9, 1991

By: __________________________________________    By: _________________________
       Jack Roth, not individually but
       as Vice President

                                       8
<PAGE>

                               PERSONAL GUARANTY

     For value received Michael Flavin, individually, hereby guarantees payment
of rent and prompt and satisfactory performance of all obligations under the
terms of the Industrial Building Lease Agreement set forth above subject to the
following:

     (1)  During the years one through three of the Lease, Guarantor will be
          responsible for 75% of the obligations under the Guaranty; and

     (2)  If Lessee is not in default under the Lease at the commencement of the
          fourth year of the term of the Lease, Guarantor will be responsible
          for 50% of the obligations under the Guaranty during years four
          through seven of the term of this Lease.

If Medichem Research, Inc. (Lessee) defaults in the payment of any installment
of the monthly base rent, or in the payment of any other obligation, or in the
performance of other obligations or covenant under the terms of the Lease,
Michael Flavin, individually, guarantees and shall pay the amount of such
installment and additional payment as above provided within ten (10) days after
receipt of written notice of default and demand for payment to Lessor.

     If Medichem Research, Inc. defaults in the performance of any additional
obligations under the Lease, Michael Flavin, individually shall pay to Lessor on
demand, all damages, costs, and expenses that Lessor is entitled to recover from
Medichem, as above provided, by reason of such default.

     This guarantee shall continue in force until all obligations of Medichem
Research, Inc. under the Lease have been satisfied or until Michael Flavin's
liability to Lessor under the lease has been completely discharged, whichever
first occurs.

     Michael Flavin, as guarantor, shall not be discharged from liability
hereunder as long as any claim by Lessor against Medichem Research, Inc. remains
outstanding.

     This guarantee. shall be binding on the legal representatives, successors.,
and assigns of the guarantor.  Notice of acceptance of this guarantee is
expressly waived.

     IN WITNESS WHEREOF, Michael Flavin, as guarantor, has executed this
guarantee at ________ on the __ day of October, 1996.


                                           _________________________________
                                           Michael Flavin

<PAGE>

                           INDUSTRIAL BUILDING LEASE

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
            DATE OF LEASE                             TERM OF LEASE                           MONTHLY RENT
-----------------------------------------------------------------------------------------------------------------------------------
                                            BEGINNING               ENDING
                                         ------------------------------------------
October           , 1996                  10/01/96               09/30/03                   See paragraph R2 of Rider
------------------------------------------------------------------------------------------------------------------------------------
<S>                                      <C>                     <C>                        <C>
Location of Premises:

Suites G, H and I
12305 New Avenue, Lemont, Illinois
------------------------------------------------------------------------------------------------------------------------------------
Purpose:

Performing Early Stage Pharmaceutical R&D
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
   LESSEE                                                    LESSOR
<S>              <C>                                      <C>          <C>
NAME             Medichem Research, Inc. an Illinois      NAME AND     Roth's Reliable Construction Co.,
                 corporation                              BUSINESS     Inc., an Illinois corp. as agent
                                                                       for Standard Bank and Trust as
                                                                       Trustee under Trust No. 5
ADDRESS          12305 New Avenue                         ADDRESS      13501 S. Hickey
                 Lemont, Illinois 60439                                Lemont, Illinois 60439
</TABLE>

     In consideration of the mutual covenants and agreements herein stated,
Lessor hereby leases to Lessee and Lessee hereby leases from Lessor solely for
the above purpose the premises designated above (the "Premises"), together with
the appurtenances thereto, for the above Term.

RENT                          24.  Lessee shall pay Lessor or Lessor's agent as
                           rent for the Premises the sum stated above, monthly
                           in advance, until termination of this lease, at
                           Lessor's address stated above or such other address
                           as Lessor may designate in writing.

CONDITION AND                 25.  Lessee has examined and knows the condition
UPKEEP OF PREMISES         of the Premises and has received the same in good
                           order and repair, and acknowledges that no
                           representations as to the condition and repair
                           thereof have been made by Lessor, or his agent, prior
                           to or at the execution of this lease that are not
                           herein expressed; Lessee will keep the Premises
                           including all appurtenances, in good repair,
                           replacing all broken glass with glass of the same
                           size and quality as that broken, and will replace all
                           damaged plumbing fixtures with others of equal
                           quality, and will keep the Premises, including
                           adjoining alleys, in a clean and healthful condition
                           according to the applicable municipal ordinances and
                           the direction of the proper public officers during
                           the term of this lease at Lessee's expense, and will
                           without injury to the roof, remove all snow and ice
                           from the same when necessary, and will remove the
                           snow and ice from the sidewalk abutting the Premises;
                           and upon the termination of this lease, in any way,
                           will yield up the Premises to Lessor, in good
                           condition and repair, loss by fire and ordinary wear
                           excepted, and will deliver the keys therefor at the
                           place of payment of said rent.

LESSEE NOT TO                   26.  Lessee will not allow the Premises to be
MISUSE; SUBLET;               used for any purpose other than that hereinbefore
ASSIGNMENT                    specified, and will not load floors with machinery
                              or goods beyond the floor load rating prescribed
                              by applicable municipal ordinances, and will not
                              allow the Premises to be occupied in whole, or in
                              part, by any other person, and will not sublet the
                              same or any part thereof, nor assign this lease
                              without in each case the written consent of the
                              Lessor first had, which shall not be unreasonably
                              withheld or delayed, and Lessee will not permit
                              any transfer by operation of law of the interest
                              in the Premises acquired through this lease, and
                              will not permit the Premises to be used for any
                              unlawful purpose, or for any

                                      -2-
<PAGE>

                              purpose that will injure the reputation of the
                              building or increase the fire hazard of the
                              building, or disturb the tenants or the
                              neighborhood, and will not permit the same to
                              remain vacant or unoccupied for more than ten
                              consecutive days; and will not allow any signs,
                              cards or placards to be posted, or placed thereon,
                              nor permit any alteration of or addition to any
                              part of the Premises, except by written consent of
                              Lessor; all alterations and additions to the
                              Premises shall remain for the benefit of Lessor
                              unless otherwise provided in the consent
                              aforesaid.


MECHANIC'S LIEN               27.  Lessee will not permit any mechanic's liens
                         to be placed upon the Premises or the term hereof, and
                         in case of the filing of such lien Lessee will promptly
                         pay same. If default in payment thereof shall continue
                         for thirty (30) days after written notice thereof from
                         Lessor to the Lessee, the Lessor shall have the right
                         and privilege at Lessor's option of paying the same or
                         any portion thereof without inquiry as to the validity
                         thereof, and any amounts so paid, including expenses
                         and interest, shall be so much additional indebtedness
                         hereunder due from Lessee to Lessor and shall be repaid
                         to Lessor immediately on rendition of bill therefor.

INDEMNITY FOR                 28.  Lessee covenants and agrees that he will
ACCIDENTS                protect and save and keep the Lessor forever harmless
                         and indemnified against and from any penalty or damages
                         or charges imposed for any violation of any laws or
                         ordinances, whether occasioned by the neglect of Lessee
                         or those holding under Lessee, and that Lessee will at
                         all times protect, indemnify and save and keep harmless
                         the Lessor against and from any and all loss, cost,
                         damage or expense, arising out of or from any accident
                         or other occurrence on or about the Premises, causing
                         injury to any person or property whomsoever or
                         whatsoever and will protect, indemnify and save and
                         keep harmless the Lessor against and from any and all
                         claims and against and from any and all loss, cost,
                         damage or expense arising out of any failure of Lessee
                         in any respect to comply with and perform all the
                         requirements and provisions thereof.

NON-LIABILITY OF              29.  Except as provided by Illinois statute,
LESSOR                   Lessor shall not be liable for any damage occasioned by
                         failure to keep the Premises in repair, nor for any
                         damage done or occasioned by or from plumbing, gas,
                         water sprinkler, steam or other pipes or sewerage or
                         the bursting, leaking or running of any pipes, tank or
                         plumbing fixtures, in, above, upon or about Premises or
                         any building or improvement thereon nor for any damage
                         occasioned by water, snow or ice being upon or coming
                         through the roof, skylights, trap door or otherwise,
                         nor for any damages arising from acts or neglect of any
                         owners or occupants of adjacent or contiguous property.

WATER, GAS AND                30.  Lessee will pay, in addition to the rent
ELECTRIC CHARGES         above specified, all water rents, gas and electric
                         light and power bills taxed, levied or charged on the
                         Premises, for and during the time for which this lease
                         is granted, and in case said water rents and bills for
                         gas, electric light and power shall not be paid when
                         due. Lessor shall have the right to pay the same, which
                         amounts so paid, together with any sums paid by Lessor
                         to keep the Premises in a clean and healthy condition,
                         as above specified, are declared to be so much
                         additional rent and payable with the installment of
                         rent next due thereafter and shall be generally treated
                         as rent for all purposes of this Agreement.

KEEP PREMISES IN              31.  Lessor shall not be obliged to incur any
REPAIR                   expense for repairing any improvements upon said
                         demised premises or connected therewith, and the Lessee
                         at his own expense will keep all improvements in good
                         repair (injury by fire, or other causes beyond Lessee's
                         control excepted) as well as in a good tenantable and
                         wholesome condition, and will comply with all local or
                         general regulations, laws and ordinances applicable
                         thereto, as well as lawful requirements of all
                         competent authorities in that behalf. Lessee will, as
                         far as possible, keep said improvements from
                         deterioration due to ordinary wear and from falling
                         temporarily out of repair. If

                                      -3-
<PAGE>

                         Lessee does not make repairs as required hereunder
                         promptly and adequately, Lessor may but need not make
                         such repairs and pay the costs thereof, and such costs
                         shall be so much additional rent immediately due from
                         and payable by Lessee to Lessor.

ACCESS TO PREMISES            32.  Lessee will allow Lessor free access to the
                         Premises for the purpose of examining or exhibiting the
                         same, or to make any needful repairs, or alterations
                         thereof which Lessor may see fit to make and will allow
                         to have placed upon the Premises at all times notice of
                         "For Sale" and "To Rent", and will not interfere with
                         the same.

ABANDONMENT AND               33.  If Lessee shall abandon or vacate the
RELETTING                Premises, or if Lessee's right to occupy the Premises
                         be terminated by Lessor by reason of Lessee's breach of
                         any of the covenants herein, the same may be re-let by
                         Lessor for such rent and upon such terms as Lessor may
                         deem fit; and if a sufficient sum shall not thus be
                         realized monthly, after paying the expenses of such re-
                         letting and collecting to satisfy the rent hereby
                         reserved, Lessee agrees to satisfy and pay all
                         deficiency monthly during the remaining period of this
                         lease.

HOLDING OVER                  34.  Lessee will, at the termination of this lease
                         by lapse of time or otherwise, yield up immediate
                         possession to Lessor, and failing so to do, will pay as
                         liquidated damages, for the whole time such possession
                         is withheld, the sum Three Hundred Fifty Dollars
                         ($350.00) per day; but the provisions of this clause
                         shall not be held as a waiver by Lessor of any right of
                         re-entry as hereinafter set forth; nor shall the
                         receipt of said rent or any part thereof, or any other
                         act in apparent affirmance of tenancy, operate as a
                         waiver of the right to forfeit this lease and the term
                         hereby granted from the period still unexpired, for a
                         breach of any of the covenants herein.

EXTRA FIRE HAZARD             35.  There shall not be allowed, kept, or used on
                         the Premises any inflammable or explosive liquids or
                         materials save such as may be necessary for use in the
                         business of the Lessee, and in such case, any such
                         substances shall be delivered and stored in amount, and
                         used, in accordance with the rules of the applicable
                         Board of Underwriters and statutes and ordinances now
                         or hereafter in force.

NO RENT REDUCTION             36.  Lessee's covenant to pay rent is and shall be
OR SET OFF               independent of each and every other covenant of this
                         lease. Lessee agrees that any claim by Lessee against
                         Lessor shall not be deducted from rent nor set off
                         against any claim for rent in any action.

RENT AFTER NOTICE             37.  It is further agreed, by the parties hereto,
OR SUIT                  that after the service of notice, or the commencement
                         of a suit or after final judgment for possession of the
                         Premises, Lessor may receive and collect any rent due,
                         and the payment of said rent shall not waive or affect
                         said notice, said suit, or said judgment.

PAYMENT OF COSTS              38.  Lessee will pay and discharge all reasonable
                         costs, attorney's fees and expenses that shall be made
                         and incurred by Lessor in enforcing the covenants and
                         agreements of this lease

RIGHTS CUMULATIVE             39.  The rights and remedies of Lessor under this
                         lease are cumulative. The exercise or use of any one or
                         more thereof shall not bar Lessor from exercise or use
                         of any other right or remedy provided herein or
                         otherwise provided by law, nor shall exercise nor use
                         of any right or remedy by Lessor waive any other right
                         or remedy.

FIRE AND CASUALTY             40.  In case the Premises shall be rendered
                         untenantable during the term of this lease by fire or
                         other casualty, Lessor at his option may terminate the
                         lease or repair the Premises within 60 days thereafter.
                         If Lessor elects to repair, this lease shall remain in
                         effect provided such repairs are completed within said
                         time. If Lessor shall

                                      -4-
<PAGE>

                         not have repaired the Premises within said time, then
                         at the end of such time the term hereby created shall
                         terminate. If this lease is terminated by reason of
                         fire or casualty as herein specified, rent shall be
                         apportioned and paid to the day of such fire or other
                         casualty.

SUBORDINATION                 41.  This lease is subordinate to all mortgages
                         which may now or hereafter affect the Premises.

PLURALS;                      42.  The words "Lessor" and :Lessee" wherever
SUCCESSORS               herein occurring and used shall be construed to mean
                         "Lessors" and "Lessees" in case more than one person
                         constitutes either party to this lease; and all the
                         covenants and agreements contained shall be binding
                         upon, and inure to, their respective successors, heirs,
                         executors, administrators and assigns and may be
                         exercised by his or their attorney or agent.

SEVERABILITY                  43.  Wherever possible each provision of this
                         lease shall be interpreted in such manner as to be
                         effective and valid under applicable law, but if any
                         provision of this lease shall be prohibited by or
                         invalid under applicable law, such provision shall be
                         ineffective to the extent of such prohibition or
                         invalidity, without invalidating the remainder of such
                         provision or the remaining provisions of this lease.

                              44.  Rider attached hereto is incorporated herein

                              45.  Lessee acknowledges that Lessor has
                         approximately 4.6 acres of property, upon which
                         Lessee's building shall be erected, and that Lessee
                         shall, in no way, interfere with Lessor's ability and
                         right to utilize rent, sell, dispose of, assign, or
                         otherwise encumber or affect the property that is not
                         leased to Lessee.

                              46.  Lessee herein agrees to reimburse Lessor for
                         any and all special binders, endorsements and other
                         modifications and additions to Lessor's Owners
                         Insurance Policy that are directly attributable to
                         Lessee's business and shall generally be treated as
                         additional rent and additional insurance reimbursement
                         for all purposes of this Agreement.


     If this instrument is executed by a corporation, such execution has been
authorized by a duly adopted resolution of the Board of Directors of such
corporation.

     This lease consists of ______ pages numbered 1 to ______, including a rider
consisting ______ pages, identified by Lessor and Lessee.

                                      -5-
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have executed this instrument as of
the Date of Lease stated above.


LESSEE:  Medichem Research, Inc. an    LESSOR:  Roth's Reliable Construction
         Illinois corporation                   Co., Inc., an Illinois
                                                corporation as Agent for
                                                Standard Bank & Trust, Under
                                                Trust  No. 5310


_____________________________(SEAL)    __________________________________(SEAL)

_____________________________(SEAL)    __________________________________(SEAL)




                             ASSIGNMENT BY LESSOR

     On this ________________________, 20___, for value received, Lessor hereby
transfers, assigns and sets over to _________________________ all right, title
and interest in and to the above Lease and the rent thereby reserved, except
rent due and payable prior to _____________, 20__.


                                              ____________________________(SEAL)


                                              ____________________________(SEAL)



                                   GUARANTEE

     On this _____________________, 20___, in consideration of Ten Dollars
($10.00) and other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, the undersigned Guarantor hereby guarantees the
payment of rent and performance by Lessee, Lessee's heirs, executors,
administrators, successors or assigns of all covenants and agreements of the
above Lease.


                                              ____________________________(SEAL)


                                              ____________________________(SEAL)


                                      -6-
<PAGE>

                RIDER TO THAT CERTAIN INDUSTRIAL BUILDING LEASE
                       DATED AS OF OCTOBER ______, 1996
            BY AND BETWEEN ROTH'S RELIABLE CONSTRUCTION CO., INC.,
              AS AGENT FOR STANDARD BANK AND TRUST, TRUST #5310,
               AS LESSOR AND MEDICHEM RESEARCH, INC., AS LESSEE
                    FOR SUITES G, H AND I, 12305 NEW AVENUE

     R-1  Conflicts.  In the event of a conflict between the terms of this
          ---------
          Rider and printed lease form to which it is attached, the terms of
          this Rider shall control.

     R-2  Payment of Rent.
          ---------------

     (a)  Lessee shall pay monthly base rent to Lessor in advance on the first
          day of each month.  In the event that any installment of rent shall
          not be paid within ten (10) days of the due date, Lessee shall pay to
          Lessor a late payment penalty in the amount of 5% of the installment
          of rent.

     (b) The amount of rent to be paid hereunder shall be as follows:

                    Monthly:  Amount Due:  $8,750.00

     (c) The first month's rent shall be due and payable on the Commencement
         Date of this Lease.

     (d) In addition to the monthly rent due under this Lease, Lessee agrees to
         pay promptly when due as additional rent hereunder, its share of the
         increase in real estate taxes beginning in October, 1998, over the Base
         Year's real estate taxes for the Premises. Lessee shall also pay its
         share of all special assessments or governmental impositions and
         charges of every kind and nature levied or assessed on the Premises or
         any part thereof. For the purposes of this subparagraph, the Base Year
         shall be the taxes paid in 1998 on a cash basis and the share of real
         estate taxes due from Tenant shall be based on the square footage of
         the Building on the Premises, divided by fifty percent (50%). Lessee
         shall pay all utility charges to the Premises which include, but are
         not limited to, charges and assessments for water, gas, fuel, electric,
         and refuse disposal services, for each calendar year falling within the
         term, Lessor shall notify Lessee of the time and place payment to the
         relevant government authorities is required. In addition, Lessee shall
         pay its pro-rata share of the cost of the common maintenance of the
         exterior lighting, well, and aerobic filtration plant.

         In addition to the monthly rent due under this Lease, Lessee agrees to
         pay promptly when due as additional rent hereunder, its share of the
         cost and expense for insurance premiums for the Premises. Lessor shall
         notify Lessee when payment of its share of the insurance premiums are
         required.

         If the Lessee defaults in the payment of its share of any imposition,
         charge or insurance premium, as required in this Subparagraph and such
         default continues for thirty (30) days after written notice, Lessor or
         its agent may pay such imposition or charge and the amount so paid plus
         interest at the then current prime rate charged by First National Bank
         of Chicago, shall be deemed additional rent hereunder payable on
         demand. Such payment by Lessor shall not constitute a waiver of
         Lessee's default nor of Lessor's rights hereunder. The provisions of
         this Subparagraph shall survive the termination of this Lease.

     R-3  Security Deposit.  The parties agree that there shall be no security
          ----------------
          deposit under this Lease.

     R-4  Premises.  A Legal Description of the Premises is attached hereto as
          --------
          Exhibit A, incorporated herein.  Lessee acknowledges and agrees that
          it shall only have the right to the use and possession of the building
          and the immediately adjacent parking lot and sidewalks and shall have
          no rights to any other portion of the land upon which Premises is
          located.
<PAGE>

     R-5  Lessee's Business.  Lessor generally knows and generally has a
          -----------------
          layman's understanding of the nature of Lessee's business, namely, to
          carry out chemical synthesis in a laboratory setting.  The synthesis
          include but are not limited to the use of hazardous and/or flammable
          chemical compounds.  The use and storage of these materials will be in
          conformance with all federal, state and local laws, regulations and
          ordinances.  Lessor further understands that Lessee will seek to make
          improvements to the space in the form of chemical wet laboratories.
          These laboratories will be constructed in accordance with any and all
          pertinent laws, regulations and codes, whether federal, state, local,
          municipal or any governmental arm or agency thereunder.  Lessor will
          not seek to limit Lessee in regard to its business operations and
          expansion as long as said business operations and expansions are in
          accordance with all federal state and local laws, regulations and
          ordinances and does not create a nuisance to other interested parties
          or tenants.

     R-6  Insurance.  Lessee shall reimburse Lessor for the cost to procure and
          ---------
          maintain in full force and effect, the following insurance in respect
          of the Premises, all of which insurance shall be issued in the name of
          Lessor and Lessee and with loss payable clauses thereof in favor of
          Lessor or Lessee as their interests may appear.  Each party shall
          provide the other with copies of all policies procured hereunder and
          paid receipts therefor within ten (10) days after the term begins and
          after the beginning of each renewal term.

     Lessor shall obtain Insurance against loss by fire and all other casualties
by standard fire and extended coverage (especially, but not exclusively covering
loss or damage by windstorm, hail, explosion, riot, civil commotion, or damage
from aircraft or vehicles and smoke damage) with standard vandalism and
malicious mischief riders, and endorsement for one (1) year's rent (including
expenses) loss insurance covering losses due to casualty in responsible
insurance companies for the full replacement value of the improvements of which
the Premises are a part.  Lessor shall be compensated for the loss of abated
rent by having the proceeds of rent insurance paid to the Lessor.  All policies
of insurance shall waive subrogation against Lessor and Lessee and shall remain
with Lessor and shall be issued in the name of Lessor, with a loss payable
clause in favor of Lessor and with a deductible of no more than $10,000.00.
Lessor and Lessee waive and release any claims against each other for losses due
to fire or other casualty, or other perils insured by standard policies for
extended coverage, vandalism, and malicious mischief.  Lessor reserves the right
to have a standard non-contributory mortgage clause in said policy.

     Lessee shall obtain at its expense:

     (a)  Public Liability or Owner, Landlord and Tenant Liability insurance
          with minimum limits of $1,000,000.00 for injury or death to any one
          person, $2,000,000.00 for injury to more than one person resulting
          from the same occurrence and $500,000.00 for damage to property, which
          policy shall name Lessor as an additional named insured;

     (b)  Any insurance covering risks which at the time are reasonably required
          to be covered by investors or mortgage lenders with respect to the
          Premises and which are customarily obtained in the Chicago
          Metropolitan area for buildings such as the subject building.

     Lessee shall be responsible for reimbursing Lessor for the deductible
portions of any policy to be provided hereunder, it being the agreement of the
parties that the Lessor be fully covered for all amounts, including any
deductible.  Copies of the Certificate of Insurance showing Lessor as an
additional named on the liability policy shall be delivered to Lessor.

     Lessee shall also obtain in its own name insurance on all of Lessee's
contents and trade fixtures, machinery, equipment, furniture and furnishings in
the Premises to the full extent of their replacement cost under standard fire
and extended coverage insurance, including without limitation, vandalism and
malicious mischief endorsements.

     Lessor shall maintain the fire and casualty insurance on the Premise and
the building in which the Premises is located in such amounts and with such
insurance carriers as Lessor deems appropriate.  Lessor and Lessee acknowledge
that Lessee has received a statement as to Lessor's current insurance coverage.
Lessor shall obtain and maintain such insurance required to be maintained by
this Lease without waiving any of Lessor's rights under this

                                      -2-
<PAGE>

Lease and Lessor's damages for Lessee's failure or refusal shall not be limited
to the amount of the insurance premiums which the Lessee has failed to pay. Sums
advanced by Lessor, or its agent, for premiums together with interest thereon at
the current prime rate of interest charged by First National Bank of Chicago
shall be deemed additional rent payable on demand. If Lessee is not in default
upon the termination of this Lease, Lessee shall then be entitled to a refund of
the then unearned insurance premiums, if any. All insurance policies shall
provide that the insurance companies issuing them shall not cancel them for
nonpayment of premiums or otherwise without first giving the Lessee and Lessor
at least thirty (30) days prior written notice of cancellation. In the event
Lessee fails to obtain and maintain the insurance required to be obtained by
Lessee hereunder, Lessor may, but shall not be required to, obtain and maintain
the same and the cost of such insurance plus interest shall be additional rent
due hereunder.

     R-7  A.  Right of First Refusal.
              ----------------------

     (1)    Lessee generally acknowledges that Lessor owns a parcel of
approximately 4.6 acres upon which the Leased Premises are located, and may
elect to sell all, or a portion or portions of the 4.6 acre parcel in the future
without limitation or restriction.

     (2)    Should Lessor receive and accept an offer from a third party for the
purchase of the entire 4.6 acre parcel, or any such small portion(s) thereof
upon which the Leased Premises is located, during the term and duration of this
Lease, Lessor shall inform the offering party, in writing and as part of the
acceptance, that such acceptance is contingent and subject to a right of first
refusal op the part of the Lessee.

     (3)    In the event that Section R-7(a)(2) occurs, Lessor shall provide
Lessee with a written "Notice of Right of First Refusal" and a copy of the third
party offer for the purchase of the entire 4.6 acre parcel, or any such small
portion(s) thereof as may be dictated by the third party offer. Lessee shall
have five (5) business days from receipt of "Notice of Right of First Refusal"
to exercise its right of first refusal. For purposes of this section only,
written notice of the offer shall be deemed effective to the Lessee on the date
delivered to Lessee at the subject premises by Lessee by Messenger delivery or
telefax. A fax transmission confirmation report or written evidence regarding
Messenger Delivery shall control regarding the date said "Notice of Right of
First Refusal" is received by Lessee.

     (4)    Should Lessee elect to exercise its right of first refusal within
said five (5) business day period, and in any event, no later than 5:00 p.m. on
the fifth business day after receipt of the "Notice of Right of First Refusal",
it must deliver such written notice of its exercise of the right of first
refusal, including its agreement to be bound to the Lessor on the same terms and
conditions as is stated in the offer between the third party and the Lessor.
Once said written notice is received by the Lessor, said written notice of
Lessee's exercise of the right of first refusal cannot be revoked or cancelled.

     (5)    Unless Lessee delivers timely written notice to Lessor of its
exercise of its right of first refusal as required in R-7(A)(4), its right of
first refusal shall be completely and irrevocably waived and shall cease to have
any further effect, whether legal, equitable or, otherwise.

     B.     Lessee's Representation and Warranty Regarding Water Waste Disposal.
            -------------------------------------------------------------------

     (1)    Lessee shall only allow water waste from sink and toilet to be
drained into existing well/septic system. All other liquid drainage, whether
from laboratory sinks, basins, or other items utilized in the Lessee's
laboratory process, shall be removed by Lessee, at Lessee's sole expense, via a
licensed and certified hazardous/toxic/chemical waste or special waste removal
service.

     (2)    Lessee acknowledges that technological advances may, during the term
of this Lease, allow for complete purification of lab related waste so as to
allow the same to be discharged in accordance with any and all applicable
federal, state, and local laws, statutes, codes, regulations and ordinances.
Therefore, Section R-7(b)(1) may be amended, upon the written mutual consent of
Lessor and Lessee, to allow for the utilization of newer waste treatment
technologies, which shall be installed at the sole expense of Lessee.

                                      -3-
<PAGE>

     R-8  Default.
          -------

     (a)  The occurrence of any one or more of the following events shall
constitute a default by Lessee hereunder.

          (i)       If Lessee shall be adjudged bankrupt, or a decrees or order
approving, and properly filed, a petition or answer asking for reorganization of
Lessee under the Federal bankruptcy laws as now or hereafter amended, or under
the laws of any State, shall be entered, and any such decree or judgement or
order shall not have been vacated or stayed or set aside within sixty (60) days
from the date of the entry or granting thereof.

          (ii)      If Less shall file or admit the Jurisdiction of a court and
the material allegations contained in any petition in bankruptcy, or any
petition pursuant or purporting to be pursuant to the Federal bankruptcy laws as
now or hereafter amended, of Lessee shall institute any proceedings or shall
give its consent to the institution of any proceedings or shall give its consent
to the institution of any proceedings for any relief of Lessee under any
bankruptcy or insolvency laws or laws relating to the relief of debtors,
readjustments of indebtedness, reorganization, arrangements, composition or
extensions.

          (iii)     If Lessee shall make any assignment for the benefit of
creditors or shall apply for or consent to the appointment of a receiver for
Lessee or any of the property of Lessee.

          (iv)      If a decree or order appointing a receiver of the property
of Lessee shall be made and such decree or order shall not have been vacated,
stayed or set aside within sixty (60) days from the date of entry or granting
thereof.

          (v)       If Lessee shall vacate or abandon the Premises during the
term hereof.

          (vi)      If Lessee shall not pay all amounts which constitute monthly
rent hereunder (including but not limited to the payment of taxes), when due as
herein provided and such non-payment shall continue for a period of 5 days
thereafter.

          (vii)     If Lessee shall make default in any of the other covenants
and agreements herein contained to be kept, observed and performed by Lessee,
including but not limited to the certain Environmental Indemnity Agreement, and
such default shall continue for a period of 20 days after written notice of such
default; provided however, that Lessee shall have such additional time as is
reasonably required to cure such default.

          (viii)    If Lessee shall default under the terms and provisions of
any other Lease Agreement which Lessee has with Lessor for other properties
owned by Lessor.

     (b)  Upon any default of Lessee hereunder, Lessor may, in addition to all
other rights and elections provided in the Lease and all other legal or
equitable remedies or damages provided by law, at its election, declare the term
of the Lease ended and, either with or without process of law, reenter,
repossess and forfeiture of the rents to be paid and the covenants to be
performed by Lessee during the terms of the Lease. If default shall be made in
any covenant or agreement herein contained to be kept, observed and performed by
Lessee, other than the payment of all amounts which constitute rent as herein
provided, and if Lessee, prior to the expiration of a period of twenty (20) days
commences to eliminate the cause of such default and does so cure such default,
then Lessor shall not have the right to declare the said term ended by reason of
such default; provided, however, that the curing of any default in such manner
shall not be construed to limit or restrict the right of Lessor to declare the
said term ended and enforce all of its rights and remedies hereunder for any
other default not so cured.

     (c)  The foregoing provisions for the termination of the Lease for any
default in any of its covenants, shall not operate to exclude or suspend any
other remedy of Lessor for breach of any of said covenants or for the recovery
of said rent or any advance of Lessor made thereon, and in the event of
termination of the Lease as aforesaid, Lessee agrees to indemnify and save
harmless Lessor from any loss, cost or expenses arising from such termination
and reentry in pursuance thereof.

                                      -4-
<PAGE>

     R-9  Lessee's Alterations.  Lessee's current occupancy of the Premises is
          --------------------
in accordance with a pre-existing Lease.  No work is required by Lessee at this
time.  Roth shall be provided with the opportunity to bid on any and all further
interior buildout work.  Furthermore, any and all tenant buildout work not
performed by Roth shall be subject to Roth's prior approval with such approval
not being unreasonably withheld.  Additionally, plans for any construction work
within the subject premises including all drawings, sketches, layouts and
designs shall be tendered to Roth before construction begins for Roth's
approval.  Lessee shall not make any "Lessee's Alterations" without the prior
written consent of Lessor, which consent shall not be unreasonably withheld.
Lessee's Alterations shall be made at Lessee's sole cost and expense.  As used
herein, the term "Lessee's Alterations" shall mean each and every (a) demolition
of the whole or any part of any improvement now or hereafter erected on the
Premises; (b) excavation at any time made or to be made in or about the Premises
(c) repair, addition, betterment, change, improvement and rebuilding made of,
to, in, on or about the Premises or any part thereof; and (d) construction of
any additional improvements upon the Premises.

     It shall be a condition precedent to Lessor's consent that Lessee furnish
in writing to Lessor, a description of the work to be done at least twenty (20)
days prior to the commencement of any Lessee's Alterations.  It shall be a
further condition precedent to Lessor's approval of any Lessee's Alterations
that there shall be no written notice of default hereunder.

     Before any Lessee's Alterations are begun, Lessee shall procure at its sole
cost and expense, all necessary licenses, permits and inspections from all
governmental authorities or agencies having jurisdiction over the Premises, and
shall, upon demand, deliver photostatic copies thereof to Lessor.  All Lessee's
Alterations shall be made in compliance with all laws, rules, regulations,
ordinances promulgated by any state, local or other governmental body having
jurisdiction over the Premises.  Lessee shall pay all costs, expenses and
liabilities arising out of or in connection with, or by reason of any Lessee's
Alterations and shall keep the Premises free and clear from all liens, claims,
encumbrances in any way arising out of, or in connection with or by reason of
any Lessee's Alterations.  No Lessee's Alterations shall be made that would
render title to the Premises or any part thereof valued as of the termination of
the Lease unmarketable or which would reduce the value of the Premises.  Lessor
shall not be required to make any contribution to the cost of any Lessee's
Alterations or any part thereof.  Lessee covenants that Lessor shall not be
required to pay any cost, expense or liability arising out of or in connection
with or by reason of any of Lessee's Alterations and shall indemnify and hold
Lessor harmless from and against and shall reimburse Lessor for all costs,
expenses and liabilities, including reasonable attorneys' fees.  All Lessee's
Alterations as well as repairs to the Premises made pursuant to any provision
hereof shall be removed by Lessee or at the option of the Lessor become the
property of Lessor at the expiration of the Lease and title thereto and
possession thereof shall automatically vest in Lessor, without the necessity of
Lessee executing any further instrument particularly granting, conveying or
releasing the same and without necessity of any payment therefor by Lessor,
except if Lessor so elects all improvements by Lessee shall be removed by Lessee
at the termination of the Lease, without destruction of or non-repairable damage
to the Premises.

     R-10  Maintenance.  Lessee shall pay all maintenance costs associated with
           -----------
its own interior improvements to the building.

           Roth shall be responsible to the extent it deems necessary for
exterior landscaping and shall provide reasonable snowplowing services for the
benefit of the Lessee.  Roth will be responsible for all maintenance, operation
and repair expenses to roof, shall plumbing, exterior walls, windows,
foundations, sidewalks, HVAC (excepting for utility charges which are the
responsibility of Lessee), provided the same are not due to Lessee's, its
agents, employees, guest, licenses, and invitees, negligence, willful or wanton
misconduct acts or omissions.

     R-11  Place of Payment of Rent.   All rent payable to Lessor shall be paid
           ------------------------
by Lessee to Lessor at Lessor's address specified herein, or to such other
person and/or at such other address as Lessor may direct by notice to Lessee in
such coin or currency of the United States of America as at the time of payment
shall be legal tender for the payment of public or private debts.  Except as
specifically provided herein, Rent shall be paid without notice or demand.

     R-12  Mechanic's Liens.  Lessee shall not create or permit to be created or
           ----------------
to remain and shall discharge any lien, encumbrance or charge levied on account
of any imposition or any mechanic's, laborer's or material men's

                                      -5-
<PAGE>

lien or mortgage, deed or trust or otherwise which is not being contested in
good faith by Lessee by proper proceedings and which might or does constitute a
lien, encumbrance or charge upon the Premises, or any part thereof, or the
income therefrom and Lessee will not suffer any other matter or thing whereby
the estate, right, interest, of Lessor in the Premises or any part thereof might
be impaired. If any mechanic's, laborer's or materialmen's lien shall at any
time be filed against the Premises or any part thereof, Lessee, within thirty
(30) days after notice of the filing thereof, shall cause the same to be
discharged of record or otherwise stayed by payment, deposit, bond, order of a
court of competent jurisdiction or otherwise. If Lessee shall fail to contest by
proper proceeding or cause such lien to be discharged within such time period,
then, in addition to any other right or remedy, Lessor may, but shall not be
obligated to procure the discharge of such lien by deposit or by bonding
proceedings and in such event Lessee shall immediately pay the amount of such
cost or expense to Lessor as Additional Rent, hereunder, which amount shall be
refundable upon completion and satisfaction of the lien proceedings.

     R-13  Surrender.  Lessee shall and will, upon the expiration of this Lease,
           ---------
or upon any re-entry by Lessor upon the Premises pursuant to the terms of this
Lease:  (i) surrender and deliver up the Premises into the possession and use of
Lessor without delay, broom clean and in good order and condition and repair,
free and clear of all lettings and occupancy and free and clear of all liens,
charges and encumbrances, in the same condition as existed on the date hereof,
and, at the request of Lessor, shall remove all Lessee's Alterations, if any.

     R-14  Compliance with Laws.  Lessee, at its sole cost and expense, shall
           --------------------
promptly comply with all present and future statutes, codes, laws, acts,
ordinances, administrative and judicial orders, judgments, decrees, injunctions
and decisions, rules, resolutions, restrictions, regulations and requirements of
all federal, state, county, municipal and local governments, and all courts,
departments, commissions, boards, bureaus, agencies, authorities, officials and
offices thereof have or claiming jurisdiction overall or any part of the
property or the use, operation or occupancy thereof.

     R-15  Waiver of Liabilities.  To the full extent permitted by law, Lessee
           ---------------------
hereby releases and waives all claims against Lessor and its agents and
employees for in jury or damage for person, property or business sustained in or
about the Premises or the property by Lessee, its employees, agents, servants,
invitees, licensees or subtenants.

     R-16  Mutual Waiver of Subrogation Rights.  Whenever (a) any loss, cost,
           -----------------------------------
damage, or expense resulting from fire, explosion, or any other casualty or
occurrence is incurred by either of' the parties to this Lease in connection
with the Premises, and (b) such party is then covered in whole or in part by
insurance with respect to such loss, cost, damage or expense, then the party so
insured hereby releases the other party from any liability it may have on
account of such loss, cost, damage, or expense to the extent of such amount
recovered by reason of such insurance and waives any right of subrogation which
might otherwise exist in or accrue to any person on account thereof, provided
that such release of liability and waiver of the right of subrogation shall not
be operative in any case where the effect thereof is to invalidate such
insurance coverage or increase the cost thereof.

     R-17  Late Charge.  In the event any installment of Rent or Additional
           -----------
Rent is not paid on the due date thereof, Lessee shall pay to Lessor a late
charge, which shall be deemed to be Additional Rent hereunder, in an amount
equal to five percent (5%) of the amount of Rent or Additional Rent, which was
not timely paid hereunder.  This late charge shall be payable each and every
calendar month or part thereof thereafter until such Rent or Additional Rent is
paid.

     R-18  Applicable Law and Construction.  The laws of the State of Illinois
           -------------------------------
shall govern the validity, performance and enforcement of this Lease.  The
invalidity or unenforceability of any provision of this Lease shall not affect
or impair any other provision.  The headings of the several articles contained
herein are for convenience only and do not explain, define, limit, amplify, aid
in the interpretation, construction or meaning of the provisions of this Lease.

     R-19  Binding Effect of Lease.  The covenants, agreements and obligations
           -----------------------
herein contained except as herein otherwise specifically provided, shall extend
to, bind and inure to the benefit of the parties hereto and their respective
personal representatives, heirs, successors and assigns.  Lessor, at any time
and from time to time, may make an assignment of its interest in this Lease,
and, in the event of such assignment and the assumption by the

                                      -6-
<PAGE>

assignee of the covenants and agreements to be performed by Lessor herein,
Lessor and its successors and assigns (other than the assignee of this Lease)
shall be released from any and all liability hereunder.

     R-20  Title.  The title to the Premises is held in a land trust of which
           -----
Standard Bank and Trust Company is the trustee under a Trust Agreement dated
August 9, 1991, and known as Trust No. 5310.

     R-21  Brokerage.  The parties hereto represent and warrant to each other
           ---------
that they have not had any dealing with any real estate broker, salesman, agent,
finder or consultant in connection with the transaction contemplated hereby and
agree to indemnify and hold harmless the other against any claims for
commissions, fees, etc.

     R-22  Notice.  Except as provided in R-7 above, any notice, request, demand
           ------
or consent required or permitted to be given under this Agreement shall be in
writing and shall be effective when delivered personally or when mailed, first
class, postage prepaid, certified or registered mail, return receipt requested,
as follows:

     If to Lessee:       Medichem Research, Inc.
                         12305 New Avenue
                         Lemont, IL 60546
                         Attention: John L. Flavin
                         Fax Number: 630/257-1505

     With a copy to:     __________________________________
                         __________________________________
                         __________________________________
                         __________________________________


     If to Lessor:       Roth's Reliable Construction Co., Inc.
                         13501 S. Hickory
                         Lemont, Illinois 60439
                         Attention:  Jack Roth, President
                         Fax Number: 630/257-3584

     With a copy to:     Robert D. Tuerk, Esq.
                         Pretzel & Stouffer, Chartered
                         One S. Wacker Drive, Ste. 2500
                         Chicago, Illinois 60606
                         Fax Number: 312/346-8242

Any party hereto may change its address by giving notice in accordance with this
paragraph stating its new address to each of the other parties hereto.
Commencing with the giving of such notice, such newly designated address shall
be said party's address for purposes of all notices or other communications
required or permitted to be given pursuant to this Agreement.

     R-23   Option to Renew. Provided the Lessee is not in default under the
            ---------------
Lease, the Lessee is granted the option of renewing this Lease for an additional
five (5) year term from October 1, 2003, provided it gives the Lessor notice in
writing of the exercise of the option at least one hundred eighty (180) days
prior to the expiration of the Lease. If Lessee exercises such option to renew
then the Base Rental during the Renewal Period shall be Ten Dollars and 00/100
($10.00) a square foot per annum on 37,500 square feet, payable monthly in
advance, plus taxes, insurance and all other expenses of Lessee hereunder. The
exercise of the option shall be irrevocable. All conditions and covenants of the
Lease shall remain in full force and effect during the extended period, except
that the monthly rent shall be the then agreed upon increased rent for the
Premises.

     R-24   Cancellation of Prior Lease. Provided Lessee has entered into a
            ---------------------------
valid and binding Lease Agreement for Suites K, L and O, 12305 New Avenue, in
Building 4 owned by Lessor, this Agreement shall

                                      -7-
<PAGE>

terminate the prior Lease Agreement dated February, 1995 for the Premises
subject to this Lease, effective September 30, 1996. As of October 1, 1996, the
terms and provisions of this Lease shall be binding on the parties.

     R-25    Environmental Indemnification. The parties have executed an
             -----------------------------
Environmental Indemnity Agreement simultaneously with the Lease, which Agreement
is incorporated herein by reference.

     IN WITNESS WHEREOF, the parties hereto have executed this Lease as of the
day and year first above written.

LESSOR:                                            LESSEE:

ROTH'S RELIABLE CONSTRUCTION CO. INC.,             MEDICHEM RESEARCH, INC.
an Illinois corporation, as beneficiary
and agent of Standard Bank and Trust
Company Trust No. 5310, u/a/d August 9, 1991


By:                                                By:
   ------------------------------------------         --------------------------
   Jack Roth, not individually but as
   Vice President

                                      -8-
<PAGE>

                               PERSONAL GUARANTY

     For value received Michael Flavin, individually, hereby guarantees payment
of rent and prompt and satisfactory performance of all obligations under the
terms of the  Industrial Building Lease Agreement set forth above subject to the
following:

     (1)  During the years one through three of the Lease, Guarantor will be
          responsible for 75% of the obligations under the Guaranty; and

     (2)  If Lessee is not is default under the Lease at the commencement or the
          fourth year of the term of the Lease, Guarantor will be responsible
          for 50% of the obligations under the Guaranty during years four
          through seven of the terms of this Lease.

If Medichem Research, Inc. (Lessee) defaults in the payment of any installment
of the monthly base rent, or in the payment of any other obligation, or in the
performance of other obligations or covenant under the terms of the Lease,
Michael Flavin, individually, guarantees and shall pay the amount of such
installment and additional payment as above provided within ten (10) days after
receipt of written notice of default and demand for payment to Lessor.

     If Medichem Research, Inc. defaults in the performance of any additional
obligations under the Lease, Michael Flavin, individually shall pay to Lessor on
demand, all damages, costs, and expenses that Lessor is entitled to recover from
Medichem, as above provided, by reason of such default.

     This guarantee shall continue in force until all obligations of Medichem
Research, Inc. under the Lease have been satisfied or until Michael Flavin's
liability to Lessor under the lease has been completely discharged, whichever
first occurs.

     Michael Flavin, as guarantor, shall not be discharged from liability
hereunder as long as any claim by Lessor against Medichem Research, Inc. remains
outstanding.

     This guarantee shall be binding on the legal representatives, successors,
and assigns of the guarantor.  Notice of acceptance of this guarantee is
expressly waived.

     IN WITNESS WHEREOF, Michael Flavin, as guarantor, has executed this
guarantee at ____________ on the _______ day of ___________, 2000.



                                   ____________________________________________
                                   Michael Flavin
<PAGE>

                           INDUSTRIAL BUILDING LEASE

<TABLE>
<CAPTION>
_____________________________________________________________________________________________________________________
            DATE OF LEASE                             TERM OF LEASE                           MONTHLY RENT
---------------------------------------------------------------------------------------------------------------------
                                            BEGINNING               ENDING
                                        ---------------------------------------
October        , 1996                       10/01/96                09/30/03            See paragraph R2 of Rider
---------------------------------------------------------------------------------------------------------------------
<S>                                     <C>                         <C>                 <C>
Location of Premises:
Suites K, L and O
123051New Avenue, Lemont, Illinois
---------------------------------------------------------------------------------------------------------------------
Purposes:
Performing Early Stage Pharmaceutical R&D
---------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
   LESSEE                                                                LESSOR
<S>               <C>                                              <C>             <C>
NAME              Medichem Research, Inc., an Illinois             NAME AND        Roth's Reliable Construction Co.,
                  corporation                                      BUSINESS        Inc., an Illinois corp. as agent
                                                                                   for Standard Bank and Trust as
                                                                                   Trustee under Trust No. 5

ADDRESS           12305 New Avenue                                 ADDRESS         13501 S. Hickey
                  Lemont, Illinois 60439                                           Lemont, Illinois 60439
</TABLE>

     In consideration of the mutual covenants and agreements herein stated,
Lessor hereby leases to Lessee and Lessee hereby leases from Lessor solely for
the above purpose the premises designated above (the "Premises"), together with
the appurtenances thereto, for the above Term.

RENT                          47. Lessee shall pay Lessor or Lessor's agent as
                         rent for the Premises the sum stated above, monthly in
                         advance, until termination of this lease, at Lessor's
                         address stated above or such other address as Lessor
                         may designate in writing.

CONDITION AND                 48. Lessee has examined and knows the condition of
UPKEEP OF PREMISES       the Premises and has received the same in good order
                         and repair, and acknowledges that no representations as
                         to the condition and repair thereof have been made by
                         Lessor, or his agent, prior to or at the execution of
                         this lease that are not herein expressed; Lessee will
                         keep the Premises including all appurtenances, in good
                         repair, replacing all broken glass with glass of the
                         same size and quality as that broken, and will replace
                         all damaged plumbing fixtures with others of equal
                         quality, and will keep the Premises, including
                         adjoining alleys, in a clean and healthful condition
                         according to the applicable municipal ordinances and
                         the direction of the proper public officers during the
                         term of this lease at Lessee's expense, and will
                         without injury to the roof, remove all snow and ice
                         from the same when necessary, and will remove the snow
                         and ice from the sidewalk abutting the Premises; and
                         upon the termination of this lease, in any way, will
                         yield up the Premises to Lessor, in good condition and
                         repair, loss by fire and ordinary wear excepted, and
                         will deliver the keys therefor at the place of payment
                         of said rent.

LESSEE NOT TO                      49. Lessee will not allow the Premises to be
MISUSE; SUBLET;               used for any purpose other than that hereinbefore
ASSIGNMENT                    specified, and will not load floors with machinery
                              or goods beyond the floor load rating prescribed
                              by applicable municipal ordinances, and will not
                              allow the Premises to be occupied in whole, or in
                              part, by any other person, and will not sublet the
                              same or any part thereof, nor assign this lease
                              without in each case the written consent of the
                              Lessor first had, which shall not be unreasonably
                              withheld or delayed, and Lessee will not permit
                              any transfer by operation of law of the interest
                              in the Premises acquired through this lease, and

                                      -2-
<PAGE>

                              will not permit the Premises to be used for any
                              unlawful purpose, or for any purpose that will
                              injure the reputation of the building or increase
                              the fire hazard of the building, or disturb the
                              tenants or the neighborhood, and will not permit
                              the same to remain vacant or unoccupied for more
                              than ten consecutive days; and will not allow any
                              signs, cards or placards to be posted, or placed
                              thereon, nor permit any alteration of or addition
                              to any part of the Premises, except by written
                              consent of Lessor; all alterations and additions
                              to the Premises shall remain for the benefit of
                              Lessor unless otherwise provided in the consent
                              aforesaid.

MECHANIC'S LIEN               50. Lessee will not permit any mechanic's lien or
                         liens to be placed upon the Premises or any building or
                         improvement thereon without the written consent of
                         Lessor during the term hereof, and in case of the
                         filing of such lien Lessee will promptly pay same. If
                         default in payment thereof shall continue for thirty
                         (30) days after written notice thereof from Lessor to
                         the Lessee, the Lessor shall have the right and
                         privilege at Lessor's option of paying the same or any
                         portion thereof without inquiry as to the validity
                         thereof, and any amounts so paid, including expenses
                         and interest, shall be so much additional indebtedness
                         hereunder due from Lessee to Lessor and shall be repaid
                         to Lessor immediately on rendition of bill therefor.

INDEMNITY FOR                 51. Lessee covenants and agrees that he will
ACCIDENTS                protect and save and keep the Lessor forever harmless
                         and indemnified against and from any penalty or damages
                         or charges imposed for any violation of any laws or
                         ordinances, whether occasioned by the neglect of Lessee
                         or those holding under Lessee, and that Lessee will at
                         all times protect, indemnify and save and keep harmless
                         the Lessor against and from any and all loss, cost,
                         damage or expense, arising out of or from any accident
                         or other occurrence on or about the Premises, causing
                         injury to any person or property whomsoever or
                         whatsoever and will protect, indemnify and save and
                         keep harmless the Lessor against and from any and all
                         claims and against and from any and all loss, cost,
                         damage or expense arising out of any failure of Lessee
                         in any respect to comply with and perform all the
                         requirements and provisions thereof.

NON-LIABILITY OF              52. Except as provided by Illinois statute, Lessor
LESSOR                   shall not be liable for any damage occasioned by
                         failure to keep the Premises in repair, nor for any
                         damage done or occasioned by or from plumbing, gas,
                         water, sprinkler, steam or other pipes or sewerage or
                         the bursting, leaking or running of any pipes, tank or
                         plumbing fixtures, in, above, upon or about Premises or
                         any building or improvement thereon nor for any damage
                         occasioned by water, snow or ice being upon or coming
                         through the roof, skylights, trap door or otherwise,
                         nor for any damages arising from acts or neglect of any
                         owners or occupants of adjacent or contiguous property.

WATER, GAS AND                53. Lessee will pay, in addition to the rent above
ELECTRIC CHARGES         specified, all water rents, gas and electric light and
                         power bills taxed, levied or charged on the Premises,
                         for and during the time for which this lease is
                         granted, and in case said water rents and bills for
                         gas, electric light and power shall not be paid when
                         due, Lessor shall have the right to pay the same, which
                         amounts so paid, together with any sums paid by Lessor
                         to keep the Premises in a clean and healthy condition,
                         as above specified, are declared to be so much
                         additional rent and payable with the installment of
                         rent next due thereafter and shall be generally treated
                         as rent for all purposes of this Agreement.

KEEP PREMISES IN              54. Lessor shall not be obliged to incur any
 REPAIR                  expense for repairing any improvements upon said
                         demised premises or connected therewith, and the Lessee
                         at his own expense will keep all improvements in good
                         repair (injury by fire, or other causes beyond Lessee's
                         control excepted) as well as in a good tenantable and
                         wholesome condition, and will comply with all local or
                         general regulations, laws and ordinances applicable
                         thereto, as well as lawful requirements of all
                         competent authorities in that behalf. Lessee will, as
                         far as possible, keep said improvements

                                      -3-
<PAGE>

                         from deterioration due to ordinary wear and from
                         falling temporarily out of repair. If Lessee does not
                         make repairs as required hereunder promptly and
                         adequately, Lessor may but need not make such repairs
                         and pay the costs thereof, and such costs shall be so
                         much additional rent immediately due from and payable
                         by Lessee to Lessor.

ACCESS TO PREMISES            55. Lessee will allow Lessor free access to the
                         Premises for the purpose of examining or exhibiting the
                         same, or to make any needful repairs, or alterations
                         thereof which Lessor may see fit to make and will allow
                         to have placed upon the Premises at all times notice of
                         "For Sale" and "To Rent", and will not interfere with
                         the same.

ABANDONMENT AND               56. If Lessee shall abandon or vacate the
RELETTING                Premises, or if Lessee's right to occupy the Premises
                         be terminated by Lessor by reason of Lessee's breach of
                         any of the covenants herein, the same may be re-let by
                         Lessor for such rent and upon such terms as Lessor may
                         deem fit; and if a sufficient sum shall not thus be
                         realized monthly, after paying the expenses of such re-
                         letting and collecting to satisfy the rent hereby
                         reserved, Lessee agrees to satisfy and pay all
                         deficiency monthly during the remaining period of this
                         lease.

HOLDING OVER                  57. Lessee will, at the termination of this lease
                         by lapse of time or otherwise, yield up immediate
                         possession to Lessor, and failing so to do, will pay as
                         liquidated damages, for the whole time such possession
                         is withheld, the sum of Three Hundred Fifty Dollars
                         ($350.00) per day; but the provisions of this clause
                         shall not be held as a waiver by Lessor of any right of
                         re-entry as hereinafter set forth; nor shall the
                         receipt of said rent or any part thereof, or any other
                         act in apparent affirmance of tenancy, operate as a
                         waiver of the right to forfeit this lease and the term
                         hereby granted for the period still unexpired, for a
                         breach of any of the covenants herein.

EXTRA FIRE HAZARD             58. There shall not be allowed, kept, or used on
                         used on the Premises any inflammable or explosive
                         liquids or materials save such as may be necessary for
                         use in the business of the Lessee, and in such case,
                         any such substances shall be delivered and stored in
                         amount, and used, in accordance with the rules of the
                         applicable Board of Underwriters and statutes and
                         ordinances now or hereafter in force.

NO RENT REDUCTION             59. Lessee's covenant to pay rent is and shall be
OR SET OFF               independent of each and every other covenant of this
                         lease. Lessee agrees that any claim by Lessee against
                         Lessor shall not be deducted from rent nor set off
                         against any claim for rent in any action.

RENT AFTER NOTICE             60. It is further agreed, by the parties hereto,
OR SUIT                  that after the service of notice, or the commencement
                         of a suit or after final judgment for possession of the
                         Premises, Lessor may receive and collect any rent due,
                         and the payment of said rent shall not waive or affect
                         said notice, said suit, or said judgment.

PAYMENT OF COSTS              61. Lessee will pay and discharge all reasonable
                         costs, attorney's fees and expenses that shall be made
                         and incurred by Lessor in enforcing the covenants and
                         agreements of this lease

RIGHTS CUMULATIVE             62. The rights and remedies of Lessor under this
                         lease are cumulative. The exercise or use of any one or
                         more thereof shall not bar Lessor from exercise or use
                         of any other right or remedy provided herein or
                         otherwise provided by law, nor shall exercise nor use
                         of any right or remedy by Lessor waive any other right
                         or remedy.

FIRE AND CASUALTY             63. In case the Premises shall be rendered
                         untenantable during the term of this lease by fire or
                         other casualty, Lessor at his option may terminate the
                         lease or repair the Premises within 60 days thereafter.
                         If Lessor elects to repair, this lease shall

                                      -4-
<PAGE>

                         remain in effect provided such repairs are completed
                         within said time. If Lessor shall not have repaired the
                         Premises within said time, then at the end of such time
                         the term hereby created shall terminate. If this lease
                         is terminated by reason of fire or casualty as herein
                         specified, rent shall be apportioned and paid to the
                         day of such fire or other casualty.

SUBORDINATION                 64. This lease is subordinate to all mortgages
                         which may now or hereafter affect the Premises.

PLURALS;                      65. The words "Lessor" and "Lessee" wherever
SUCCESSORS               herein occurring and used shall be construed to mean
                         "Lessors" and "Lessees" in case more than one person
                         constitutes either party to this lease; and all the
                         covenants and agreements contained shall be binding
                         upon, and inure to, their respective successors, heirs,
                         executors, administrators and assigns and may be
                         exercised by his or their attorney or agent.

INTERPRABILITY                66. Wherever possible each provisions of this
                         lease shall be interpreted in such manner as to be
                         effective and valid under applicable law, but if any
                         provision of this lease shall be prohibited by or
                         invalid under applicable law, such provision shall be
                         ineffective to the extent of such prohibition or
                         invalidity, without invalidating the remainder of such
                         provision or the remaining provisions of this lease.

                              67. Rider attached hereto is incorporated herein.

                              68. Lessee acknowledges that Lessor has
                         approximately 4.6 acres of property, upon which
                         Lessee's building shall be erected, and that Lessee
                         shall, in no way, interfere with Lessor's ability and
                         right to utilize rent, sell, dispose of, assign, or
                         otherwise encumber or affect the property that is not
                         leased to Lessee.

                              69. Lessee herein agrees to reimburse Lessor for
                         any and all special binders, endorsements and other
                         modifications and additions to Lessor's Owners
                         Insurance Policy that are directly attributable to
                         Lessee's business and shall generally be treated as
                         additional rent and additional insurance reimbursement
                         for all purposes of this agreement.


     If this instrument is executed by a corporation, such execution has been
authorized by a duly adopted resolution of the Board of Directors of such
corporation.

     This lease consists of ______ pages numbered 1 to ______, including a rider
consisting of ______ pages, identified by Lessor and Lessee.

     IN WITNESS WHEREOF, the parties hereto have executed this instrument as of
the Date of Lease stated above.

<TABLE>
<S>                                                  <C>
LESSEE:  Medichem Research, Inc., an                 LESSOR:  Roth's Reliable Construction Co., Inc., an
         Illinois corporation                                 Illinois corporation as Agent for Standard
                                                              Bank & Trust, Under Trust No. 5310

________________________________________(SEAL)       ______________________________________________(SEAL)

________________________________________(SEAL)       ______________________________________________(SEAL)
</TABLE>

                                      -5-
<PAGE>

                             ASSIGNMENT BY LESSOR

     On this ________________________, 20___, for value received, Lessor hereby
transfers, assigns and sets over to _________________________ all right, title
and interest in and to the above Lease and the rent thereby reserved, except
rent due and payable prior to _____________, 20__.


                                                    ______________________(SEAL)

                                                    ______________________(SEAL)


                                   GUARANTEE

     On this _____________________, 20___, in consideration of Ten Dollars
($10.00) and other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, the undersigned Guarantor hereby guarantees the
payment of rent and performance by Lessee, Lessee's heirs, executors,
administrators, successors or assigns of all covenants and agreements of the
above Lease.


                                                    ______________________(SEAL)

                                                    ______________________(SEAL)

                                      -6-
<PAGE>

                RIDER TO THAT CERTAIN INDUSTRIAL BUILDING LEASE
                         DATED AS OF OCTOBER ___, 1996
            BY AND BETWEEN ROTH'S RELIABLE CONSTRUCTION CO., INC.,
              AS AGENT FOR STANDARD BANK AND TRUST, TRUST #5310,
               AS LESSOR AND MEDICHEM RESEARCH, INC., AS LESSEE
                    FOR SUITES K, L AND O, 12305 NEW AVENUE

     R-26   Conflicts.   In the event of a conflict between the terms of this
            ---------
Rider and printed lease form to which it is attached, the terms of this Rider
shall control.

     R-27   Payment of Rent.
            ---------------

     (a)    Lessee shall pay monthly base rent to Lessor in advance on the first
day of each month. In the event that any installment of rent shall not be paid
within ten (10) days of the due date, Lessee shall pay to Lessor a late payment
penalty in the amount of 5% of the installment of rent.

     (b)    The amount of rent to be paid hereunder shall be as follows:

                  Period                         Monthly Rent Due
                  ------                         ----------------

            October 1, 1996 through              $3,125.00
            September 30, 1998

            October 1, 1998 through              $4,375.00
            September 30, 2003

     (c)    The first month's rent shall be due and payable on the Commencement
Date of this Lease.

     (d)    In addition to the monthly rent due under this Lease, Lessee agrees
to pay promptly when due as additional rent hereunder, its share of the increase
in real estate taxes beginning in October, 1998, over the Base Year's real
estate taxes for the Premises. Lessee shall also pay its share of all special
assessments or governmental impositions and charges of every kind and nature
levied or assessed on the Premises or any part thereof. For the purposes of this
subparagraph, the Base Year shall be the taxes paid in 1998 on a cash basis and
the share of real estate taxes due from Tenant shall be based on the square
footage of the Building on the Premises, divided by fifty percent (50%). Lessee
shall pay all utility charges to the Premises which include, but are not limited
to, charges and assessments for water, gas, fuel, electric, and refuse disposal
services, for each calendar year falling within the term, Lessor shall notify
Lessee of the time and place payment to the relevant government authorities is
required. In addition, Lessee shall pay its pro-rata share of the cost of the
common maintenance of the exterior lighting, well, and aerobic filtration plant.

            In addition to the monthly rent due under this Lease, Lessee agrees
            to pay promptly when due as additional rent hereunder, its share of
            the cost and expense for insurance premiums for the Premises. Lessor
            shall notify Lessee when payment of its share of the insurance
            premiums are required.

            If the Lessee defaults in the payment of its share of any
            imposition, charge or insurance premium, as required in this
            Subparagraph and such default continues for thirty (30) days after
            written notice, Lessor or its agent may pay such imposition or
            charge and the amount so paid plus interest at the then current
            prime rate charged by First National Bank of Chicago, shall be
            deemed additional rent hereunder payable on demand. Such payment by
            Lessor shall not constitute a waiver of Lessee's default nor of
            Lessor's rights hereunder. The provisions of this Subparagraph shall
            survive the termination of this Lease.

     R-28   Security Deposit. The parties agree that there shall be no security
            ----------------
deposit under this Lease.
<PAGE>

     R-29   Premises. A Legal Description of the Premises is attached hereto as
            --------
Exhibit A, incorporated herein. Lessee acknowledges and agrees that it shall
only have the right to the use and possession of the building and the
immediately adjacent parking lot and sidewalks and shall have no rights to any
other portion of the land upon which Premises is located.

     R-30   Lessee's Business. Lessor generally knows and generally has a
            -----------------
layman's understanding of the nature of Lessee's business, namely, to carry out
chemical synthesis in a laboratory setting. The synthesis include but are not
limited to the use of hazardous and/or flammable chemical compounds. The use and
storage of these materials will be in conformance with all federal, state and
local laws, regulations and ordinances. Lessor further understands that Lessee
will seek to make improvements to the space in the form of chemical wet
laboratories. These laboratories will be constructed in accordance with any and
all pertinent laws, regulations and codes, whether federal, state, local,
municipal or any governmental arm or agency thereunder. Lessor will not seek to
limit Lessee in regard to its business operations and expansion as long as said
business operations and expansions are in accordance with all federal, state and
local laws, regulations and ordinances and does not create a nuisance to other
interested parties or tenants.

     R-31   Insurance. Lessee shall reimburse Lessor for the cost to procure and
            ---------
maintain in full force and effect, the following insurance in respect of the
Premises, all of which insurance shall be issued in the name of Lessor and
Lessee and with loss payable clauses thereof in favor of Lessor or Lessee as
their interests may appear. Each party shall provide the other with copies of
all policies procured hereunder and paid receipts therefor within ten (10) days
after the term begins and after the beginning of each renewal term.

     Lessor shall obtain Insurance against loss by fire and all other casualties
by standard fire and extended coverage (especially, but not exclusively covering
loss or damage by windstorm, hail, explosion, riot, civil commotion, or damage
from aircraft or vehicles and smoke damage) with standard vandalism and
malicious mischief riders, and endorsement for one (1) year's rent (including
expenses) loss insurance covering losses due to casualty in responsible
insurance companies for the full replacement value of the improvements of which
the Premises are a part. Lessor shall be compensated for the loss of abated rent
by having the proceeds of rent insurance paid to the Lessor. All policies of
insurance shall waive subrogation against Lessor and Lessee and shall remain
with Lessor and shall be issued in the name of Lessor, with a loss payable
clause in favor of Lessor and with a deductible of no more than $10,000.00.
Lessor and Lessee waive and release any claims against each other for losses due
to fire or other casualty, or other perils insured by standard policies for
extended coverage, vandalism, and malicious mischief. Lessor reserves the right
to have a standard non-contributory mortgage clause in said policy.

     Lessee shall obtain at its expense:

     (a)  Public Liability or Owner, Landlord and Tenant Liability insurance
     with minimum limits of $1,000,000.00 for injury or death to any one person,
     $2,000,000.00 for injury to more than one person resulting from the same
     occurrence and $500,000.00 for damage to property, which policy shall name
     Lessor as an additional named insured;

     (b)  Any insurance covering risks which at the time are reasonably required
     to be covered by investors or mortgage lenders with respect to the Premises
     and which are customarily obtained in the Chicago Metropolitan area for
     buildings such as the subject building.

     Lessee shall be responsible for reimbursing Lessor for the deductible
portions of any policy, to be provided hereunder, it being the agreement of the
parties that the Lessor be fully covered for all amounts, including any
deductible. Copies of the Certificate of Insurance showing Lessor as an
additional named insured on the liability policy shall be delivered to Lessor.

     Lessee shall also obtain in its own name insurance on all of Lessee's
contents and trade fixtures, machinery, equipment, furniture and furnishings in
the Premises to the full extent of their replacement cost under standard fire
and extended coverage insurance, including without limitation, vandalism and
malicious mischief endorsements.

                                       2
<PAGE>

     Lessor shall maintain the fire and casualty insurance on the Premises and
the building in which the Premises is located in such amounts and with such
insurance carriers as Lessor deems appropriate. Lessor and Lessee acknowledge
that Lessee has received a statement as to Lessor's current insurance coverage.
Lessor shall obtain and maintain such insurance required to be maintained by
this Lease without waiving any of Lessor's rights under this Lease and Lessor's
damages for Lessee's failure or refusal shall not be limited to the amount of
the insurance premiums which the Lessee has failed to pay. Sums advanced by
Lessor, or its agent, for premiums together with interest thereon at the current
prime rate of interest charged by First National Bank of Chicago shall be deemed
additional rent payable on demand. If Lessee is not in default upon the
termination of this Lease, Lessee shall then be entitled to a refund of the then
unearned insurance premiums, if any. All insurance policies shall provide that
the insurance companies issuing them shall not cancel them for nonpayment of
premiums or otherwise without first giving the Lessee and Lessor at least thirty
(30) days prior written notice of cancellation. In the event Lessee fails to
obtain and maintain the insurance required to be obtained by Lessee hereunder,
Lessor may, but shall not be required to, obtain and maintain the same and the
cost of such insurance plus interest shall be additional rent due hereunder.

     R-32   A.   Right of First Refusal for Purchase.
                 -----------------------------------

     (1)    Lessee generally acknowledges that Lessor owns a parcel of
approximately 4.6 acres upon which the Leased Premises are located, and may
elect to sell all, or a portion or portions of the 4.6 acre parcel in the future
without limitation or restriction.

     (2)    Should Lessor receive and accept an offer from a third party for the
purchase of the entire 4.6 acre parcel, or any such small portion(s) thereof
upon which the Leased Premises is located, during the term and duration of this
Lease, Lessor shall inform the offering party, in writing and as part of the
acceptance, that such acceptance is contingent and subject to a right of first
refusal on the part of the Lessee.

     (3)    In the event that Section R-7(a)(2) occurs, Lessor shall provide
Lessee with a written "Notice of Right of First Refusal" and a copy of the third
party offer for the purchase of the entire 4.6 acre parcel, or any such small
portion(s) thereof as may be dictated by the third party offer. Lessee shall
have five (5) business days from receipt of "Notice of Right of First Refusal"
to exercise its right of first refusal. For purposes of this section only,
written notice of the offer shall be deemed effective to the Lessee on the date
delivered to Lessee at the subject premises by Lessee by Messenger delivery or
telefax. A fax transmission confirmation report or written evidence regarding
Messenger Delivery shall control regarding the date said "Notice of Right of
First Refusal" is received by Lessee.

     (4)    Should Lessee elect to exercise its right of first refusal within
said five (5) business day period, and in any event, no later than 5:00 p.m. on
the fifth business day after receipt of the "Notice of Right of First Refusal",
it must deliver such written notice of its exercise of the right of first
refusal, including its agreement to be bound to the Lessor on the same terms and
conditions as is stated in the offer between the third party and the Lessor.
Once said written notice is received by the Lessor, said written notice of
Lessee's exercise of the right of first refusal cannot be revoked or cancelled.

     (5)    Unless Lessee delivers timely written notice to Lessor of its
exercise of its right of first refusal as required in R-7(A)(4), its right of
first refusal shall be completely and irrevocably waived and shall cease to have
any further effect, whether legal, equitable or otherwise.

     B.     Right of First Refusal to Lease Adjoining Space.
            -----------------------------------------------

     (1)    Lessee acknowledges that Lessor is entering into new Leases for the
remaining three (3) suites in Building 4.

     (2)    In the event of the expiration or termination of any new Lease of
the remaining three (3) suites, the Lessor shall offer to Lessee a right of
first refusal to lease such remaining space at the then current market rent.
Lessor shall provide Lessee with a "Notice of Right of First Refusal" for such
space as it becomes available and

                                       3
<PAGE>

Lessee shall have five (5) business days to agree with Lessor to rent such
space. Failure to agree shall terminate Lessee's right of first refusal for such
space offered at that time.

     C.     Lessee's Representation and Warranty Regarding Water Waste Disposal.
            -------------------------------------------------------------------

     (1)    Lessee shall only allow water waste from sink and toilet to be
drained into existing well/septic system. All other liquid drainage, whether
from laboratory sinks, basins, or other items utilized in the Lessee's
laboratory process, shall be removed by Lessee, at Lessee's sole expense, via a
licensed and certified hazardous/toxic/chemical waste or special waste removal
service.

     (2)    Lessee acknowledges that technological advances may, during the term
of this Lease, allow for complete purification of lab related waste so as to
allow the same to be discharged in accordance with any and all applicable
federal, state, and local laws, statutes, codes, regulations and ordinances.
Therefore, Section R-7(c)(1) may be amended, upon the written mutual consent of
Lessor and Lessee, to allow for the utilization of newer waste treatment
technologies, which shall be installed at the sole expense of Lessee.

     R-33   Default.
            -------

     (a)    The occurrence of any one or more of the following events shall
constitute a default by Lessee hereunder.


                    If Lessee shall be adjudged bankrupt, or a decree or order
                    approving, and properly filed, a petition or answer asking
                    for reorganization of Lessee under the Federal bankruptcy
                    laws as now or hereafter amended, or under the laws of any
                    State, shall be entered, and any such decree or judgement or
                    order shall not have been vacated or stayed or set aside
                    within sixty (60) days from the date of the entry or
                    granting thereof.

                    If Lessee shall file or admit the jurisdiction of a court
                    and the material allegations contained in any petition in
                    bankruptcy, or any petition pursuant or purporting to be
                    pursuant to the Federal bankruptcy laws as now or hereafter
                    amended, of Lessee shall institute any proceedings or shall
                    give its consent to the institution of any proceedings for
                    any relief of Lessee under any bankruptcy or insolvency laws
                    or laws relating to the relief of debtors, readjustments of
                    indebtedness, reorganization, arrangements, composition or
                    extensions.

                    If Lessee shall make any assignment for the benefit of
                    creditors or shall apply for or consent to the appointment
                    of a receiver for Lessee or any of the property of Lessee.

                    If a decree or order appointing a receiver of the property
                    of Lessee shall be made and such decree or order shall not
                    have been vacated, stayed or set aside within sixty (60)
                    days from the date of entry or granting thereof.

                    If Lessee shall vacate or abandon the Premises during the
                    term hereof.

                    If Lessee shall not pay all amounts which constitute monthly
                    rent hereunder (including but not limited to the payment of
                    taxes), when due as herein provided and such non-payment
                    shall continue for a period of 5 days thereafter.

                    If Lessee shall make default in any of the other covenants
                    and agreements herein contained to be kept, observed and
                    performed by Lessee, including but not limited to the
                    certain Environmental Indemnity Agreement, and such default

                                       4
<PAGE>

                    shall continue for a period of 20 days after written notice
                    of such default; provided however, that Lessee shall have
                    such additional time as is reasonably required to cure such
                    default.

                    If Lessee shall default under the terms and provisions of
                    any other Lease Agreement which Lessee has with Lessor for
                    other properties owned by Lessor.
     (b)    Upon any default of Lessee hereunder, Lessor may, in addition to all
other rights and elections provided in the Lease and all other legal or
equitable remedies or damages provided by law, at its election, declare the term
of the Lease ended and, either with or without process of law, reenter,
repossess and forfeiture of the rents to be paid and the covenants to be
performed by Lessee during the terms of the Lease. If default shall be made in
any covenant or agreement herein contained to be kept, observed and performed by
Lessee, other than the payment of all amounts which constitute rent as herein
provided, and if Lessee, prior to the expiration of a period of twenty (20) days
commences to eliminate the cause of such default and does so cure such default,
then Lessor shall not have the right to declare the said term ended by reason of
such default; provided, however, that the curing of any default in such manner
shall not be construed to limit or restrict the right of Lessor to declare the
said term ended and enforce all of its rights and remedies hereunder for any
other default not so cured.

     (c)    The foregoing provisions for the termination of the Lease for any
default in any of its covenants, shall not operate to exclude or suspend any
other remedy of Lessor for breach of any of said covenants or for the recovery
of said rent or any advance of Lessor made thereon, and in the event of
termination of the Lease as aforesaid, Lessee agrees to indemnify and save
harmless Lessor from any loss, cost or expenses arising from such termination
and reentry in pursuance thereof.

     R-34   Lessor's and Lessee's Alterations. Prior to October 1, 1996, Lessor
            ---------------------------------
at its own expense shall:

                    erect a cinder block wall to the ceiling between suites 4
                    and 5 as indicated on the attached sketch;

                    paint all drywall and brick surfaces within units 2, 3 and
                    4; and

                    close and securely seal the opening between suites 4 and 5,
                    without removal of the door frame.
Following occupancy by Lessee, Roth shall be provided with the opportunity to
bid on any and all further interior buildout work. Furthermore, any and all
tenant buildout work not performed by Roth shall be subject to Roth's prior
approval with such approval not being unreasonably withheld. Additionally, plans
for any construction work within the subject premises including all drawings,
sketches, layouts and designs shall be tendered to Roth before construction
begins for Roth's approval. Lessee shall not make any "Lessee's Alterations"
without the prior written consent of Lessor, which consent shall not be
unreasonably withheld. Lessee's Alterations shall be made at Lessee's sole cost
and expense. As used herein, the term "Lessee's Alterations" shall mean each and
every (a) demolition of the whole or any part of any improvement now or
hereafter erected on the Premises; (b) excavation at any time made or to be made
in or about the Premises; (c) repair, addition, betterment, change, improvement
and rebuilding made of, to, in, on or about the Premises or any part thereof;
and (d) construction of any additional improvements upon the Premises.

     It shall be a condition precedent to Lessor's consent that Lessee furnish
in writing to Lessor, a description of the work to be done at least twenty (20)
days prior to the commencement of any Lessee's Alterations. It shall be a
further condition precedent to Lessor's approval of any Lessee's Alterations
that there shall be no written notice of default hereunder.

     Before any Lessee's Alterations are begun, Lessee shall procure at its sole
cost and expense, all necessary licenses, permits and inspections from all
governmental authorities or agencies having jurisdiction over the Premises, and
shall, upon demand, deliver photostatic copies thereof to Lessor. All Lessee's
Alterations shall be made in compliance with all laws, rules, regulations,
ordinances promulgated by any state, local or other

                                       5
<PAGE>

governmental body having jurisdiction over the Premises. Lessee shall pay all
costs, expenses and liabilities arising out of or in connection with, or by
reason of any Lessee's Alterations and shall keep the Premises free and clear
from all liens, claims, encumbrances in any way arising out of, or in connection
with or by reason of any Lessee's Alterations. No Lessee's Alterations shall be
made that would render title to the Premises or any part thereof valued as of
the termination of the Lease unmarketable or which would reduce the value of the
Premises. Lessor shall not be required to make any contribution to the cost of
any Lessee's Alterations or any part thereof. Lessee covenants that Lessor shall
not be required to pay any cost, expense or liability arising out of or in
connection with or by reason of any of Lessee's Alterations and shall indemnify
and hold Lessor harmless from and against and shall reimburse Lessor for all
costs, expenses and liabilities, including reasonable attorneys' fees. All
Lessee's Alterations as well as repairs to the Premises made pursuant to any
provision hereof shall be removed by Lessee or at the option of the Lessor
become the property of Lessor at the expiration of the Lease and title thereto
and possession thereof shall automatically vest in Lessor, without the necessity
of Lessee executing any further instrument particularly granting, conveying or
releasing the same and without necessity of any payment therefor by Lessor,
except if Lessor so elects all improvements by Lessee shall be removed by Lessee
at the termination of the Lease, without destruction of or non-repairable damage
to the Premises.

     R-35   Maintenance. Lessee shall pay all maintenance costs associated with
            -----------
its own interior improvements to the building.

     Roth shall be responsible to the extent it deems necessary for exterior
landscaping and shall provide reasonable snowplowing services for the benefit of
the Lessee. Roth will be responsible for all maintenance, operation and repair
expenses to roof, shall plumbing, exterior walls, windows, foundations,
sidewalks, HVAC (excepting for utility charges which are the responsibility of
Lessee), provided the same are not due to Lessee's, its agents, employees,
guest, licenses, and invitees, negligence, willful or wanton misconduct acts or
omissions.

     R-36   Place of Payment of Rent. All rent payable to Lessor shall be paid
            ------------------------
by Lessee to Lessor at Lessor's address specified herein, or to such other
person and/or at such other address as Lessor may direct by notice to Lessee in
such coin or currency of the United States of America as at the time of payment
shall be legal tender for the payment of public or private debts Except as
specifically provided herein, Rent shall be paid without notice or demand.

     R-37   Mechanic's Liens. Lessee shall not create or permit to be created or
            ----------------
to remain and shall discharge any lien, encumbrance or charge levied on account
of any imposition or any mechanic's, laborer's or material men's lien or
mortgage, deed or trust or otherwise which is not being contested in good faith
by Lessee by proper proceedings and which might or does constitute a lien,
encumbrance or charge upon the Premises, or any part thereof, or the income
therefrom and Lessee will not suffer any other matter or thing whereby the
estate, right, interest of Lessor in the Premises or any part thereof might be
impaired. If any mechanic's, laborer's or material men's lien shall at any time
be filed against the Premises or any part thereof, Lessee, within thirty (30)
days after notice of the filing thereof, shall cause the same to be discharged
of record or otherwise stayed by payment, deposit, bond, order of a court of
competent jurisdiction or otherwise. If Lessee shall fail to contest by proper
proceeding or cause such lien to be discharged within such time period, then, in
addition to any other right or remedy, Lessor may, but shall not be obligated to
procure the discharge of such lien by deposit or by bonding proceedings and in
such event Lessee shall immediately pay the amount of such cost or expense to
Lessor as Additional Rent, hereunder, which amount shall be refundable upon
completion and satisfaction of the lien proceedings.

     R-38   Surrender. Lessee shall and will, upon the expiration of this Lease,
            ---------
or upon any re-entry by Lessor upon the Premises pursuant to the terms of this
Lease: (i) surrender and deliver up the Premises into the possession and use of
Lessor without delay, broom clean and in good order and condition and repair,
free and clear of all lettings and occupancy and free and clear of all liens,
charges and encumbrances, in the same condition as existed on the date hereof,
and, at the request of Lessor, shall remove all Lessee's Alterations, if any.

     R-39   Compliance with Laws.  Lessee, at its sole cost and expense, shall
            --------------------
promptly comply with all present and future statutes, codes, laws, acts,
ordinances, administrative and judicial orders, judgments, decrees, injunctions
and decisions, rules, resolutions, restrictions, regulations and requirements of
all federal, state, county, municipal and local governments, and all courts,
departments, commissions, boards, bureaus, agencies, authorities,

                                       6
<PAGE>

officials and offices thereof have or claiming jurisdiction overall or any part
of the property or the use, operation or occupancy thereof.

     R-40   Waiver of Liabilities. To the full extent permitted by law, Lessee
            ---------------------
hereby releases and waives all claims against Lessor and its agents and
employees for in jury or damage for person, property or business sustained in or
about the Premises or the property by Lessee, its employees, agents, servants,
invitees, licensees or subtenants.

     R-41   Mutual Waiver of Subrogation Rights. Whenever (a) any loss, cost,
            -----------------------------------
damage, or expense resulting from fire, explosion, or any other casualty or
occurrence is incurred by either of the parties to this Lease in connection with
the Premises, and (b) such party is then covered in whole or in part by
insurance with respect to such loss, cost, damage or expense, then the party so
insured hereby releases the other party from any liability it may have on
account of such loss, cost, damage, or expense to the extent of such amount
recovered by reason of such insurance and waives any right of subrogation which
might otherwise exist in or accrue to any person on account thereof, provided
that such release of liability and waiver of the right of subrogation shall not
be operative in any case where the effect thereof is to invalidate such
insurance coverage or increase the cost thereof.

     R-42   Late Charge. In the event any installment of Rent or Additional Rent
            -----------
is not paid on the due date thereof, Lessee shall pay to Lessor a late charge,
which shall be deemed to be Additional Rent hereunder, in an amount equal to
five percent (5%) of the amount of Rent or Additional Rent which was not timely
paid hereunder. This late charge shall be payable each and every calendar month
or part thereof thereafter until such Rent or Additional Rent is paid.

     R-43   Applicable Law and Construction. The laws of the State of Illinois
            -------------------------------
shall govern the validity, performance and enforcement of this Lease. The
invalidity or unenforceability of any provision of this Lease shall not affect
or impair any other provision. The headings of the several articles contained
herein are for convenience only and do not explain, define, limit, amplify, aid
in the interpretation, construction or meaning of the provisions of this Lease.

     R-44   Binding Effect of Lease. The covenants, agreements and obligations
            -----------------------
herein contained except as herein otherwise specifically provided, shall extend
to, bind and inure to the benefit of the parties hereto and their respective
personal representatives, heirs, successors and assigns. Lessor, at any time and
from time to time, may make an assignment of its interest in this Lease, and, in
the event of such assignment and the assumption by the assignee of the covenants
and agreements to be performed by Lessor herein, Lessor and its successors and
assigns (other than the assignee of this Lease) shall be released from any and
all liability hereunder.

     R-45   Title. The title to the Premises is held in a land trust of which
            -----
Standard Bank and Trust Company is the trustee under a Trust Agreement dated
August 9, 1991, and known as Trust No. 5310.

     R-46   Brokerage. The parties hereto represent and warrant to each other
            ---------
that they have not had any dealing with any real estate broker, salesman, agent,
finder or consultant in connection with the transaction contemplated hereby and
agree to indemnify and hold harmless the other against any claims for
commissions, fees, etc.

     R-47   Notice. Except as provided in R-7 above, any notice, request, demand
            ------
or consent required or permitted to be given under this Agreement shall be in
writing and shall be effective when delivered personally or when mailed, first
class, postage prepaid, certified or registered mail., return receipt requested,
as follows:

     If to Lessee:        Medichem Research, Inc.
                          12305 New Avenue
                          Lemont, IL 60546
                          Attention: John L. Flavin
                          Fax Number: 630/257-1505

     With a copy to:      ______________________________



                                       7
<PAGE>

                          ______________________________
                          ______________________________

     If to Lessor:        Roth's Reliable Construction Co., Inc.
                          13501 S. Hickory
                          Lemont, Illinois 60439
                          Attention: Jack Roth, President
                          Fax Number: 630/257-3584

     With a copy to:      Robert D. Tuerk, Esq.
                          Pretzel & Stouffer, Chartered
                          One S. Wacker Drive, Ste. 2500
                          Chicago, Illinois 60606
                          Fax Number: 312/346-8242

Any party hereto may change its address by giving notice in accordance with this
paragraph stating its new address to each of the other parties hereto.
Commencing with the giving of such notice, such newly designated address shall
be said party's address for purposes of all notices or other communications
required or permitted to be given pursuant to this Agreement.

     R-48   Option to Renew. Provided the Lessee is not in default under the
            ---------------
Lease, the Lessee is granted the option of renewing this Lease for an additional
five (5) year term from October 1, 2003, provided it gives the Lessor notice in
writing of the exercise of the option at least one hundred eighty (180) days
prior to the expiration of the Lease. If Lessee exercises such option to renew
then the Base Rental during the Renewal Period shall be Ten Dollars and 00/100
($10.00) a square foot per annum on 37,500 square feet, payable monthly in
advance, plus taxes, insurance and all other expenses of Lessee hereunder. The
exercise of the option shall be irrevocable. All conditions and covenants of the
Lease shall remain in full force and effect during the extended period, except
that the monthly rent shall be the then agreed upon increased rent for the
Premises.

     R-49   Environmental Indemnification. The parties have executed an
            -----------------------------
Environmental Indemnity Agreement simultaneously with the Lease, which Agreement
is incorporated herein by reference.

                                       8
<PAGE>

     WITNESS WHEREOF, the parties hereto have executed this Lease as of the day
and year first above written.

<TABLE>
<CAPTION>
LESSOR:                                            LESSEE:
<S>                                               <C>
ROTH'S RELIABLE CONSTRUCTION CO.,                  MEDICHEM RESEARCH, INC.
INC., an Illinois corporation, as beneficiary
and agent of Standard Bank and Trust Company
Trust No. 5310, u/a/d August 9, 1991


By:____________________________________________    By:____________________________________
  Jack Roth, not individually but
  as Vice President
</TABLE>

                                       9
<PAGE>

                               PERSONAL GUARANTY

     For value received Michael Flavin, individually, hereby guarantees payment
of rent and prompt and satisfactory performance of all obligations under the
terms of the Industrial Building Lease Agreement set forth above subject to the
following:

     (1)  During the years one through three of the Lease, Guarantor will be
          responsible for 75% of the obligations under the Guaranty; and

     (2)  If Lessee is not in default under the Lease at the commencement of the
          fourth year of the term of the Lease, Guarantor will be responsible
          for 50% of the obligations under the Guaranty during years four
          through seven of the term of this Lease.

     If Medichem Research, Inc. (Lessee) defaults in the payment of any
installment of the monthly base rent, or in the payment of any other obligation,
or in the performance of other obligations or covenant under the terms of the
Lease, Michael Flavin, individually, guarantees and shall pay the amount of such
installment and additional payment as above provided within ten (10) days after
receipt of written notice of default and demand for payment to Lessor.

     If Medichem Research, Inc. defaults in the performance of any additional
obligations under the Lease, Michael Flavin, individually shall pay to Lessor on
demand, all damages, costs, and expenses that Lessor is entitled to recover from
Medichem, as above provided, by reason of such default.

     This guarantee shall continue in force until all obligations of Medichem
Research, Inc. under the Lease have been satisfied or until Michael Flavin's
liability to Lessor under the lease has been completely discharged, whichever
first occurs.

     Michael Flavin, as guarantor, shall not be discharged from liability
hereunder as long as any claim by Lessor against Medichem Research, Inc. remains
outstanding.

     This guarantee shall be binding on the legal representatives, successors,
and assigns of the guarantor. Notice of acceptance of this guarantee is
expressly waived.

     IN WITNESS WHEREOF, Michael Flavin, as guarantor, has executed this
guarantee at ________ on the __ day of October, 1996.



                                               _________________________________
                                               Michael Flavin
<PAGE>

                           INDUSTRIAL BUILDING LEASE

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
       DATE OF LEASE                              TERM OF LEASE                               MONTHLY RENT
---------------------------------------------------------------------------------------------------------------------
                                             BEGINNING        ENDING
                                         -------------------------------
<S>                                       <C>             <C>                           <C>
October     , 1996                         10/01/96        09/30/03                      See paragraph R2 of Rider
---------------------------------------------------------------------------------------------------------------------
Location of Premises:
Suite J
12301 New Avenue, Lemont, Illinois
---------------------------------------------------------------------------------------------------------------------
Purposes:
Performing Early Stage Pharmaceutical R&D
---------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
  LESSEE                                                                LESSOR
<S>                 <C>                                              <C>             <C>
NAME                Medichem Research, Inc. an Illinois              NAME AND        Roth's Reliable Construction Co.,
                    corporation                                      BUSINESS        Inc., an Illinois corp. as agent
                                                                                     for Standard Bank and Trust as
                                                                                     Trustee under Trust No. 5
 ADDRESS            12305 New Avenue                                 ADDRESS         13501 S. Hickey
                    Lemont, Illinois 60439                                           Lemont, Illinois 60439
</TABLE>


     In consideration of the mutual covenants and agreements herein stated,
Lessor hereby leases to Lessee and Lessee hereby leases from Lessor solely for
the above purpose the premises designated above (the "Premises"), together with
the appurtenances thereto, for the above Term.

RENT                70. Lessee shall pay Lessor or Lessor's agent as rent for
                        the Premises the sum stated above, monthly in advance,
                        until termination of this lease, at Lessor's address
                        stated above or such other address as Lessor may
                        designate in writing.

CONDITION AND       71. Lessee has examined and knows the condition of the
UPKEEP OF PREMISES      Premises and has received the same in good order and
                        repair, and acknowledges that no representations as to
                        the condition and repair thereof have been made by
                        Lessor, or his agent, prior to or at the execution of
                        this lease that are not herein expressed; Lessee will
                        keep the Premises including all appurtenances, in good
                        repair, replacing all broken glass with glass of the
                        same size and quality as that broken, and will replace
                        all damaged plumbing fixtures with others of equal
                        quality, and will keep the Premises, including adjoining
                        alleys, in a clean and healthful condition according to
                        the applicable municipal ordinances and the direction of
                        the proper public officers during the term of this lease
                        at Lessee's expense, and will without injury to the
                        roof, remove all snow and ice from the same when
                        necessary, and will remove the snow and ice from the
                        sidewalk abutting the Premises; and upon the termination
                        of this lease, in any way, will yield up the Premises to
                        Lessor, in good condition and repair, loss by fire and
                        ordinary wear excepted, and will deliver the keys
                        therefor at the place of payment of said rent.

LESSEE NOT TO       72. Lessee will not allow the Premises to be used for any
MISUSE; SUBLET;         purpose other than that hereinbefore specified, and will
ASSIGNMENT              not load floors with machinery or goods beyond the floor
                        load rating prescribed by applicable municipal
                        ordinances, and will not allow the Premises to be
                        occupied in whole, or in part, by any other person, and
                        will not sublet the same or any part thereof, nor assign
                        this lease without in each case the written consent of
                        the Lessor first had, which shall not be unreasonably
                        withheld or delayed, and Lessee will not permit any
                        transfer by operation of law of the interest in the
                        Premises acquired through this lease, and will not
                        permit the Premises to be used for any unlawful purpose,
                        or for any purpose that will injure

<PAGE>

                        the reputation of the building or increase the fire
                        hazard of the building, or disturb the tenants or the
                        neighborhood, and will not permit the same to remain
                        vacant or unoccupied for more than ten consecutive days;
                        and will not allow any signs, cards or placards to be
                        posted, or placed thereon, nor permit any alteration of
                        or addition to any part of the Premises, except by
                        written consent of Lessor; all alterations and additions
                        to the Premises shall remain for the benefit of Lessor
                        unless otherwise provided in the consent aforesaid.

MECHANIC'S LIEN     73. Lessee will not permit any mechanic's liens to be placed
                        upon the Premises or any building or improvement thereon
                        without the written consent of Lessor during the term
                        hereof, and in case of the filing of such lien Lessee
                        will promptly pay same. If default in payment thereof
                        shall continue for thirty (30) days after written notice
                        thereof from Lessor to the Lessee, the Lessor shall have
                        the right and privilege at Lessor's option of paying the
                        same or any portion thereof without inquiry as to the
                        validity thereof, and any amounts so paid, including
                        expenses and interest, shall be so much additional
                        indebtedness hereunder due from Lessee to Lessor and
                        shall be repaid to Lessor immediately on rendition of
                        bill therefor.

INDEMNITY FOR       74. Lessee covenants and agrees that he will protect and
ACCIDENTS               save and keep the Lessor forever harmless and
                        indemnified against and from any penalty or damages or
                        charges imposed for any violation of any laws or
                        ordinances, whether occasioned by the neglect of Lessee
                        or those holding under Lessee, and that Lessee will at
                        all times protect, indemnify and save and keep harmless
                        the Lessor against and from any and all loss, cost,
                        damage or expense, arising out of or from any accident
                        or other occurrence on or about the Premises, causing
                        injury to any person or property whomsoever or
                        whatsoever and will protect, indemnify and save and keep
                        harmless the Lessor against and from any and all claims
                        and against and from any and all loss, cost, damage or
                        expense arising out of any failure of Lessee in any
                        respect to comply with and perform all the requirements
                        and provisions thereof.

NON-LIABILITY OF    75. Except as provided by Illinois statute, Lessor shall not
LESSOR                  be liable for any damage occasioned by failure to keep
                        the Premises in repair, nor for any damage done or
                        occasioned by or from plumbing, gas, water sprinkler,
                        steam or other pipes or sewerage or the bursting,
                        leaking or running of any pipes, tank or plumbing
                        fixtures, in, above, upon or about Premises or any
                        building or improvement thereon nor for any damage
                        occasioned by water, snow or ice being upon or coming
                        through the roof, skylights, trap door or otherwise, nor
                        for any damages arising from acts or neglect of any
                        owners or occupants of adjacent or contiguous property.

WATER, GAS AND      76. Lessee will pay, in addition to the rent above
ELECTRIC CHARGES        specified, all water rents, gas and electric light and
                        power bills taxed, levied or charged on the Premises,
                        for and during the time for which this lease is granted,
                        and in case said water rents and bills for gas, electric
                        light and power shall not be paid when due. Lessor shall
                        have the right to pay the same, which amounts so paid,
                        together with any sums paid by Lessor to keep the
                        Premises in a clean and healthy condition, as above
                        specified, are declared to be so much additional rent
                        and payable with the installment of rent next due
                        thereafter and shall be generally treated as rent for
                        all purposes of this Agreement.

KEEP PREMISES IN    77. Lessor shall not be obliged to incur any expense for
REPAIR                  repairing any improvements upon said demised premises or
                        connected therewith, and the Lessee at his own expense
                        will keep all improvements in good repair (injury by
                        fire, or other causes beyond Lessee's control excepted)
                        as well as in a good tenantable and
<PAGE>

                        wholesome condition, and will comply with all local or
                        general regulations, laws and ordinances applicable
                        thereto, as well as lawful requirements of all competent
                        authorities in that behalf. Lessee will, as far as
                        possible, keep said improvements from deterioration due
                        to ordinary wear and from falling temporarily out of
                        repair. If Lessee does not make repairs as required
                        hereunder promptly and adequately, Lessor may but need
                        not make such repairs and pay the costs thereof, and
                        such costs shall be so much additional rent immediately
                        due from and payable by Lessee to Lessor.

ACCESS TO PREMISES  78. Lessee will allow Lessor free access to the Premises for
                        the purpose of examining or exhibiting the same, or to
                        make any needful repairs, or alterations thereof which
                        Lessor may see fit to make and will allow to have placed
                        upon the Premises at all times notice of "For Sale" and
                        "To Rent", and will not interfere with the same.

ABANDONMENT AND     79. If Lessee shall abandon or vacate the Premises, or if
RELETTING               Lessee's right to occupy the Premises be terminated by
                        Lessor by reason of Lessee's breach of any of the
                        covenants herein, the same may be re-let by Lessor for
                        such rent and upon such terms as Lessor may deem fit;
                        and if a sufficient sum shall not thus be realized
                        monthly, after paying the expenses of such re-letting
                        and collecting to satisfy the rent hereby reserved,
                        Lessee agrees to satisfy and pay all deficiency monthly
                        during the remaining period of this lease.

HOLDING OVER        80. Lessee will, at the termination of this lease by lapse
                        of time or otherwise, yield up immediate possession to
                        Lessor, and failing so to do, will pay as liquidated
                        damages, for the whole time such possession is withheld,
                        the sum Three Hundred Fifty Dollars ($350.00) per day;
                        but the provisions of this clause shall not be held as a
                        waiver by Lessor of any right of re-entry as hereinafter
                        set forth; nor shall the receipt of said rent or any
                        part thereof, or any other act in apparent affirmance of
                        tenancy, operate as a waiver of the right to forfeit
                        this lease and the term hereby granted from the period
                        still unexpired, for a breach of any of the covenants
                        herein.

EXTRA FIRE HAZARD   81. There shall not be allowed, kept, or used on the
                        Premises any inflammable or explosive liquids or
                        materials save such as may be necessary for use in the
                        business of the Lessee, and in such case, any such
                        substances shall be delivered and stored in amount, and
                        used, in accordance with the rules of the applicable
                        Board of Underwriters and statutes and ordinances now or
                        hereafter in force.

NO RENT REDUCTION   82. Lessee's covenant to pay rent is and shall be
OR SET OFF              independent of each and every other covenant of this
                        lease. Lessee agrees that any claim by Lessee against
                        Lessor shall not be deducted from rent nor set off
                        against any claim for rent in any action.

RENT AFTER NOTICE   83. It is further agreed, by the parties hereto, that after
OR SUIT                 the service of notice or the commencement of a suit or
                        after final judgment for possession of the Premises,
                        Lessor may receive and collect any rent due, and the
                        payment of said rent shall not waive or affect said
                        notice, said suit, or said judgment.

PAYMENT OF COSTS    84. Lessee will pay and discharge all reasonable costs,
                        attorney's fees and expenses that shall be made and
                        incurred by Lessor in enforcing the covenants and
                        agreements of this lease

RIGHTS CUMULATIVE   85. The rights and remedies of Lessor under this lease are
                        cumulative. The exercise or use of any one or more
                        thereof shall not bar Lessor from exercise or use of any
<PAGE>

                        other right or remedy provided herein or otherwise
                        provided by law, nor shall exercise nor use of any right
                        or remedy by Lessor waive any other right or remedy .

FIRE AND CASUALTY   86. In case the Premises shall be rendered untenantable
                        during the term of this lease by fire or other casualty,
                        Lessor at his option may terminate the lease or repair
                        the Premises within 60 days thereafter. If Lessor elects
                        to repair, this lease shall remain in effect provided
                        such repairs are completed within said time. If Lessor
                        shall not have repaired the Premises within said time,
                        then at the end of such time the term hereby created
                        shall terminate. If this lease is terminated by reason
                        of fire or casualty as herein specified, rent shall be
                        apportioned and paid to the day of such fire or other
                        casualty.

SUBORDINATION       87. This lease is subordinate to all mortgages which may now
                        or hereafter affect the Premises .

PLURALS;            88. The words "Lessor" and :Lessee" wherever herein
SUCCESSORS              occurring and used shall be construed to mean "Lessors"
                        and "Lessees" in case more than one person constitutes
                        either party to this lease; and all the covenants and
                        agreements contained shall be binding upon, and inure
                        to, their respective successors, heirs, executors,
                        administrators and assigns and may be exercised by his
                        or their attorney or agent.

SEVERABILITY        89. Wherever possible each provision of this lease shall be
                        interpreted in such manner as to be effective and valid
                        under applicable law, but if any provision of this lease
                        shall be prohibited by or invalid under applicable law,
                        such provision shall be ineffective to the extent of
                        such prohibition or invalidity, without invalidating the
                        remainder of such provision or the remaining provisions
                        of this lease.

                    90. Rider attached hereto is incorporated herein

                    91. Lessee acknowledges that Lessor has approximately 4.6
                        acres of property, upon which Lessee's building shall be
                        erected, and that Lessee shall, in no way, interfere
                        with Lessor's ability and right to utilize rent, sell,
                        dispose of, assign, or otherwise encumber or affect the
                        property that is not leased to Lessee.

                    92. Lessee herein agrees to reimburse Lessor for any and all
                        special binders, endorsements and other modifications
                        and additions to Lessor's Owners Insurance Policy that
                        are directly attributable to Lessee's business and shall
                        generally be treated as additional rent and additional
                        insurance reimbursement for all purposes of this
                        agreement.

     If this instrument is executed by a corporation, such execution has been
authorized by a duly adopted resolution of the Board of Directors of such
corporation.

     This lease consists of ______ pages numbered 1 to ______, including a rider
consisting ______ pages, identified by Lessor and Lessee.

     IN WITNESS WHEREOF, the parties hereto have executed this instrument as of
the Date of Lease stated above.

LESSEE: Medichem Research, Inc. an        LESSOR: Roth's Reliable Construction
                                                  Co., Inc., an

<PAGE>

Illinois corporation                Illinois corporation as Agent for Standard
                                    Bank & Trust, Under Trust No. 5310

_________________________(SEAL)   ______________________________________(SEAL)

_________________________(SEAL)   ______________________________________(SEAL)




                             ASSIGNMENT BY LESSOR

     On this ________________________, 20___, for value received, Lessor
hereby transfers, assigns and sets over to _________________________ all right,
title and interest in and to the above Lease and the rent thereby reserved,
except rent due and payable prior to _____________, 20__.



                                  ______________________________________(SEAL)

                                  ______________________________________(SEAL)



                                   GUARANTEE

     On this _____________________, 20___, in consideration of Ten Dollars
($10.00) and other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, the undersigned Guarantor hereby guarantees the
payment of rent and performance by Lessee, Lessee's heirs, executors,
administrators, successors or assigns of all covenants and agreements of the
above Lease.


                                  ______________________________________(SEAL)

                                  ______________________________________(SEAL)

<PAGE>

                RIDER TO THAT CERTAIN INDUSTRIAL BUILDING LEASE
                          DATED AS OF OCTOBER 1, 1998
                       BY AND BETWEEN HIGH HOPES, INC.,
                     AS AGENT FOR STANDARD BANK AND TRUST,
                      AS TRUSTEE UNDER TRUST NUMBER 5310,
                             DATED AUGUST 9, 1991,
               AS LESSOR AND MEDICHEM RESEARCH, INC., AS LESSEE
                         FOR SUITE J, 12305 NEW AVENUE

     R-50   Conflicts.  In the event of a conflict between the terms of this
            ---------
Rider and printed lease form to which it is attached, the terms of
this Rider shall control.

     R-51   Payment of Rent.
            ---------------

     (a)    Lessee shall pay monthly base rent to Lessor in advance on the first
day of each month. In the event that any installment of rent shall not be paid
within ten (10) days of the due date, Lessee shall pay to Lessor a late payment
penalty in the amount of 5% of the installment of rent.

     (b)    The amount of rent to be paid hereunder shall be as follows:

                    Period                      Monthly Rent Due
                    ------                      ----------------

            October 1, 1998 through             $1,458.33
            September 30, 2003

            plus the items as set forth below.

     (c)    The October, 1998, rent shall be due and payable on the Commencement
Date of this Lease.

     (d)    In addition to the monthly rent due under this Lease, Lessee agrees
to pay promptly when due as additional rent hereunder, its share of the increase
in real estate taxes beginning in October, 1998, over the Base Year's real
estate taxes for the Premises. Lessee shall also pay its share of all special
assessments or governmental impositions and charges of every kind and nature
levied or assessed on the Premises or any part thereof. For the purposes of this
subparagraph, the Base Year shall be the taxes paid in 1998 on a cash basis and
the share of real estate taxes due from Tenant shall be based on the square
footage of the Building on the Premises, divided by fifty percent (50%). Lessee
shall pay all utility charges to the Premises which include, but are not limited
to, charges and assessments for water, gas, fuel, electric, and refuse disposal
services, for each calendar year falling within the term, Lessor shall notify
Lessee of the time and place payment to the relevant government authorities is
required. In addition, Lessee shall pay its pro-rata share of the cost of the
common maintenance of the exterior lighting, well, and aerobic filtration plant.

In addition to the monthly rent due under this Lease, Lessee agrees to pay
promptly when due as additional rent hereunder, its share of the cost and
expense for insurance premiums for the
<PAGE>

Premises. Lessor shall notify Lessee when payment of its share of the insurance
premiums are required.

If the Lessee defaults in the payment of its share of any imposition, charge or
insurance premium, as required in this Subparagraph and such default continues
for thirty (30) days after written notice, Lessor or its agent may pay such
imposition or charge and the amount so paid plus interest at the then current
prime rate charged by First National Bank of Chicago, shall be deemed additional
rent hereunder payable on demand. Such payment by Lessor shall not constitute a
waiver of Lessee's default nor of Lessor's rights hereunder. The provisions of
this Subparagraph shall survive the termination of this Lease.

     R-52   Security Deposit. The parties agree that there shall be no security
            ----------------
deposit under this Lease.

     R-53   Premises. A Legal Description of the Premises is attached hereto as
            --------
Exhibit A, incorporated herein.  Lessee acknowledges and agrees that it shall
only have the right to the use and possession of the building and the
immediately adjacent parking lot and sidewalks and shall have no rights to any
other portion of the land upon which Premises is located.

     R-54   Lessee's Business. Lessor generally knows and generally has a
            -----------------
layman's understanding of the nature of Lessee's business, namely, to carry out
chemical synthesis in a laboratory setting. The synthesis include but are not
limited to the use of hazardous and/or flammable chemical compounds. The use and
storage of these materials will be in conformance with all federal, state and
local laws, regulations and ordinances. Lessor further understands that Lessee
will seek to make improvements to the space in the form of chemical wet
laboratories. These laboratories will be constructed in accordance with any and
all pertinent laws, regulations and codes, whether federal, state, local,
municipal or any governmental arm or agency thereunder. Lessor will not seek to
limit Lessee in regard to its business operations and expansion as long as said
business operations and expansions are in accordance with all federal, state and
local laws, regulations and ordinances and does not create a nuisance to other
interested parties or tenants.

     R-55   Insurance. Lessee shall reimburse Lessor for the cost to procure and
            ---------
maintain in full force and effect, the following insurance in respect of the
Premises, all of which insurance shall be issued in the name of Lessor and
Lessee and with loss payable clauses thereof in favor of Lessor or Lessee as
their interests may appear. Each party shall provide the other with copies of
all policies procured hereunder and paid receipts therefor within ten (10) days
after the term begins and after the beginning of each renewal term.

     Lessor shall obtain Insurance against loss by fire and all other casualties
by standard fire and extended coverage (especially, but not exclusively covering
loss or damage by windstorm, hail, explosion, riot, civil commotion, or damage
from aircraft or vehicles and smoke damage) with standard vandalism and
malicious mischief riders, and endorsement for one (1) year's rent (including
expenses) loss insurance covering losses due to casualty in responsible
insurance companies for the full replacement value of the improvements of which
the Premises are a part. Lessor shall be compensated for the loss of abated rent
by having the proceeds of rent insurance paid to the Lessor. All policies of
insurance shall waive subrogation against Lessor and Lessee
<PAGE>

and shall remain with Lessor and shall be issued in the name of Lessor, with a
loss payable clause in favor of Lessor and with a deductible of no more than
$10,000.00. Lessor and Lessee waive and release any claims against each other
for losses due to fire or other casualty, or other perils insured by standard
policies for extended coverage, vandalism, and malicious mischief. Lessor
reserves the right to have a standard non-contributory mortgage clause in said
policy.

     Lessee shall obtain at its expense:

     (a)  Public Liability or Owner, Landlord and Tenant Liability insurance
with minimum limits of $1,000,000.00 for injury or death to any one person,
$2,000,000.00 for injury to more than one person resulting from the same
occurrence and $500,000.00 for damage to property, which policy shall name
Lessor as an additional named insured;

     (b)  Any insurance covering risks which at the time are reasonably required
to be covered by investors or mortgage lenders with respect to the Premises and
which are customarily obtained in the Chicago Metropolitan area for buildings
such as the subject building.

     Lessee shall be responsible for reimbursing Lessor for the deductible
portions of any policy, to be provided hereunder, it being the agreement of the
parties that the Lessor be fully covered for all amounts, including any
deductible. Copies of the Certificate of Insurance showing Lessor as an
additional named insured on the liability policy shall be delivered to Lessor.

     Lessee shall also obtain in its own name insurance on all of Lessee's
contents and trade fixtures, machinery, equipment, furniture and furnishings in
the Premises to the full extent of their replacement cost under standard fire
and extended coverage insurance, including without limitation, vandalism and
malicious mischief endorsements.

     Lessor shall maintain the fire and casualty insurance on the Premises and
the building in which the Premises is located in such amounts and with such
insurance carriers as Lessor deems appropriate. Lessor and Lessee acknowledge
that Lessee has received a statement as to Lessor's current insurance coverage.
Lessor shall obtain and maintain such insurance required to be maintained by
this Lease without waiving any of Lessor's rights under this Lease and Lessor's
damages for Lessee's failure or refusal shall not be limited to the amount of
the insurance premiums which the Lessee has failed to pay. Sums advanced by
Lessor, or its agent, for premiums together with interest thereon at the current
prime rate of interest charged by First National Bank of Chicago shall be deemed
additional rent payable on demand. If Lessee is not in default upon the
termination of this Lease, Lessee shall then be entitled to a refund of the then
unearned insurance premiums, if any. All insurance policies shall provide that
the insurance companies issuing them shall not cancel them for nonpayment of
premiums or otherwise without first giving the Lessee and Lessor at least thirty
(30) days prior written notice of cancellation. In the event Lessee fails to
obtain and maintain the insurance required to be obtained by Lessee hereunder,
Lessor may, but shall not be required to, obtain and maintain the same and the
cost of such insurance plus interest shall be additional rent due hereunder.
<PAGE>

     R-56 A.  Right of First Refusal for Purchase.
              -----------------------------------

     (1)  Lessee generally acknowledges that Lessor owns a parcel of
approximately 4.6 acres upon which the Leased Premises are located, and may
elect to sell all, or a portion or portions of the 4.6 acre parcel in the future
without limitation or restriction.

     (2)  Should Lessor receive and accept an offer from a third party for the
purchase of the entire 4.6 acre parcel, or any such small portion(s) thereof
upon which the Leased Premises is located, during the term and duration of this
Lease, Lessor shall inform the offering party, in writing and as part of the
acceptance, that such acceptance is contingent and subject to a right of first
refusal on the part of the Lessee.

     (3)  In the event that Section R-7(a)(2) occurs, Lessor shall provide
Lessee with a written "Notice of Right of First Refusal" and a copy of the third
party offer for the purchase of the entire 4.6 acre parcel, or any such small
portion(s) thereof as may be dictated by the third party offer. Lessee shall
have five (5) business days from receipt of "Notice of Right of First Refusal"
to exercise its right of first refusal. For purposes of this section only,
written notice of the offer shall be deemed effective to the Lessee on the date
delivered to Lessee at the subject premises by Lessee by Messenger delivery or
telefax. A fax transmission confirmation report or written evidence regarding
Messenger Delivery shall control regarding the date said "Notice of Right of
First Refusal" is received by Lessee.

     (4)  Should Lessee elect to exercise its right of first refusal within said
five (5) business day period, and in any event, no later than 5:00 p.m. on the
fifth business day after receipt of the "Notice of Right of First Refusal", it
must deliver such written notice of its exercise of the right of first refusal,
including its agreement to be bound to the Lessor on the same terms and
conditions as is stated in the offer between the third party and the Lessor.
Once said written notice is received by the Lessor, said written notice of
Lessee's exercise of the right of first refusal cannot be revoked or cancelled.

     (5)  Unless Lessee delivers timely written notice to Lessor of its exercise
of its right of first refusal as required in R-7(A)(4), its right of first
refusal shall be completely and irrevocably waived and shall cease to have any
further effect, whether legal, equitable or otherwise.

     B.   Right of First Refusal to Lease Adjoining Space.
          -----------------------------------------------

     (1)  Lessee acknowledges that Lessor is entering into new Leases for the
remaining two (2) suites in Building 4.

     (2)  In the event of the expiration or termination of any new Lease of the
remaining two (2) suites, the Lessor shall offer to Lessee a right of first
refusal to lease such remaining space at the then current market rent. Lessor
shall provide Lessee with a "Notice of Right of First Refusal" for such space as
it becomes available and Lessee shall have five (5) business days to agree with
Lessor to rent such space. Failure to agree shall terminate Lessee's right of
first refusal for such space offered at that time.
<PAGE>

     C.   Lessee's Representation and Warranty Regarding Water Waste Disposal.
          -------------------------------------------------------------------

     (1)  Lessee shall only allow water waste from sink and toilet to be drained
into existing well/septic system. All other liquid drainage, whether from
laboratory sinks, basins, or other items utilized in the Lessee's laboratory
process, shall be removed by Lessee, at Lessee's sole expense, via a licensed
and certified hazardous/toxic/chemical waste or special waste removal service.

     (2)  Lessee acknowledges that technological advances may, during the term
of this Lease, allow for complete purification of lab related waste so as to
allow the same to be discharged in accordance with any and all applicable
federal, state, and local laws, statutes, codes, regulations and ordinances.
Therefore, Section R-7(c)(1) may be amended, upon the written mutual consent of
Lessor and Lessee, to allow for the utilization of newer waste treatment
technologies, which shall be installed at the sole expense of Lessee.

     R-57 Lessee's Alterations.  Lessor's agent shall be provided with the
          --------------------
opportunity to bid on any and all further interior buildout work.  Furthermore,
any and all tenant buildout work not performed by Lessor's agent shall be
subject to Lessor's agent's prior approval with such approval not being
unreasonably withheld.  Additionally, plans for any construction work within the
subject premises including all drawings, sketches, layouts and designs shall be
tendered to Lessor's agent before construction begins for agent's approval.
Lessee shall not make any "Lessee's Alterations" without the prior written
consent of Lessor, which consent shall not be unreasonably withheld.  Lessee's
Alterations shall be made at Lessee's sole cost and expense.  As used herein,
the term "Lessee's Alterations" shall mean each and every (a) demolition of the
whole or any part of any improvement now or hereafter erected on the Premises;
(b) excavation at any time made or to be made in or about the Premises; (c)
repair, addition, betterment, change, improvement and rebuilding made of, to,
in, on or about the Premises or any part thereof; and (d) construction of any
additional improvements upon the Premises.

     It shall be a condition precedent to Lessor's consent that Lessee furnish
in writing to Lessor, a description of the work to be done at least twenty (20)
days prior to the commencement of any Lessee's Alterations.  It shall be a
further condition precedent to Lessor's approval of any Lessee's Alterations
that there shall be no written notice of default hereunder.

     Before any Lessee's Alterations are begun, Lessee shall procure at its
sole cost and expense, all necessary licenses, permits and inspections from all
governmental authorities or agencies having jurisdiction over the Premises, and
shall, upon demand, deliver photostatic copies thereof to Lessor.  All Lessee's
Alterations shall be made in compliance with all laws, rules, regulations,
ordinances promulgated by any state, local or other governmental body having
jurisdiction over the Premises.  Lessee shall pay all costs, expenses and
liabilities arising out of or in connection with, or by reason of any Lessee's
Alterations and shall keep the Premises free and clear from all liens, claims,
encumbrances in any way arising out of, or in connection with or by reason of
any Lessee's Alterations.  No Lessee's Alterations shall be made that would
render title to the Premises or any part thereof valued as of the termination of
the Lease unmarketable or which would reduce the value of the Premises.  Lessor
shall not be required to make any contribution to the cost of any Lessee's
Alterations or any part thereof.  Lessee covenants that Lessor shall not be
required to pay any cost, expense or liability arising out of or in connection
<PAGE>

with or by reason of any of Lessee's Alterations and shall indemnify and hold
Lessor harmless from and against and shall reimburse Lessor for all costs,
expenses and liabilities, including reasonable attorneys' fees.  All Lessee's
Alterations as well as repairs to the Premises made pursuant to any provision
hereof shall be removed by Lessee or at the option of the Lessor become the
property of Lessor at the expiration of the Lease and title thereto and
possession thereof shall automatically vest in Lessor, without the necessity of
Lessee executing any further instrument particularly granting, conveying or
releasing the same and without necessity of any payment therefor by Lessor,
except if Lessor so elects all improvements by Lessee shall be removed by Lessee
at the termination of the Lease, without destruction of or non-repairable damage
to the Premises.

     R-58 Default.
          -------

     (a)  The occurrence of any one or more of the following events shall
 constitute a default by Lessee hereunder.

          (i)   If Lessee shall be adjudged bankrupt, or a decrees or order
approving, and properly filed, a petition or answer asking for reorganization of
Lessee under the Federal bankruptcy laws as now or hereafter amended, or under
the laws of any State, shall be entered, and any such decree or judgement or
order shall not have been vacated or stayed or set aside within sixty (60) days
from the date of the entry or granting thereof.

          (ii)  If Lessee shall file or admit the jurisdiction of a court and
the material allegations contained in any petition in bankruptcy, or any
petition pursuant or purporting to be pursuant to the Federal bankruptcy laws as
now or hereafter amended, of Lessee shall institute any proceedings or shall
give its consent to the institution of any proceedings for any relief of Lessee
under any bankruptcy or insolvency laws or laws relating to the relief of
debtors, readjustments of indebtedness, reorganization, arrangements,
composition or extensions.

          (iii) If Lessee shall make any assignment for the benefit of creditors
or shall apply for or consent to the appointment of a receiver for Lessee or any
of the property of Lessee.

          (iv)  If a decree or order appointing a receiver of the property of
Lessee shall be made and such decree or order shall not have been vacated,
stayed or set aside within sixty (60) days from the date of entry or granting
thereof.

          (v)   If Lessee shall vacate or abandon the Premises during the term
hereof.

          (vi)  If Lessee shall not pay all amounts which constitute monthly
rent hereunder (including but not limited to the payment of taxes), when due as
herein provided and such non-payment shall continue for a period of 5 days
thereafter.

          (vii) If Lessee shall make default in any of the other covenants and
agreements herein contained to be kept, observed and performed by Lessee,
including but not limited to the certain Environmental Indemnity Agreement, and
such default shall continue for a period of 20 days after written notice of such
default; provided however, that Lessee shall have additional time as is
reasonably required to cure such default.
<PAGE>

           (viii)  If Lessee shall default under the terms and provisions of any
other Lease Agreement which Lessee has with Lessor for other properties owned by
Lessor.

     (b)   Upon any default of Lessee hereunder, Lessor may, in addition to all
other rights and elections provided in the Lease and all other legal or
equitable remedies or damages provided by law, at its election, declare the term
of the Lease ended and, either with or without process of law, reenter,
repossess and forfeiture of the rents to be paid and the covenants to be
performed by Lessee during the terms of the Lease. If default shall be made in
any covenant or agreement herein contained to be kept, observed and performed by
Lessee, other than the payment of all amounts which constitute rent as herein
provided, and if Lessee, prior to the expiration of a period of twenty (20) days
commences to eliminate the cause of such default and does so cure such default,
then Lessor shall not have the right to declare the said term ended by reason of
such default; provided, however, that the curing of any default in such manner
shall not be construed to limit or restrict the right of Lessor to declare the
said term ended and enforce all of its rights and remedies hereunder for any
other default not so cured.

     (c)   The foregoing provisions for the termination of the Lease for any
default in any of its covenants, shall not operate to exclude or suspend any
other remedy of Lessor for breach of any of said covenants or for the recovery
of said rent or any advance of Lessor made thereon and in the event of
termination of the Lease as aforesaid, Lessee agrees to indemnify and save
harmless Lessor from any loss, cost or expenses arising from such termination
and reentry in pursuance thereof.

     R-59  Maintenance. Lessee shall pay all maintenance costs associated with
           -----------
its own interior improvements to the building.

           Lessor shall be responsible to the extent it deems necessary for
exterior landscaping and shall provide reasonable snowplowing services for the
benefit of the Lessee.  Lessor will be responsible for all maintenance,
operation and repair expenses to roof, shall plumbing, exterior walls, windows,
foundations, sidewalks, HVAC (excepting for utility charges which are the
responsibility of Lessee), provided the same are not due to Lessee's, its
agent's, employees, guest, licenses, and invitees, negligence, willful or wanton
misconduct acts or omissions.

     R-60  Place of Payment of Rent. All rent payable to Lessor shall be paid by
           ------------------------
Lessee to Lessor at Lessor's address specified herein, or to such other person
and/or at such other address as Lessor may direct by notice to Lessee in such
coin or currency of the United States of America as at the time of payment shall
be legal tender for the payment of public or private debts. Except as
specifically provided herein, Rent shall be paid without notice or demand.

     R-61   Mechanic's Liens. Lessee shall not create or permit to be created or
            ----------------
to remain and shall discharge any lien, encumbrance or charge levied on account
of any imposition or any mechanic's, laborer's or material men's lien or
mortgage, deed or trust or otherwise which is not being contested in good faith
by Lessee by proper proceedings and which might or does constitute a lien,
encumbrance or charge upon the Premises, or any part thereof, or the income
therefrom and Lessee will not suffer any other matter or thing whereby the
estate, right, interest of Lessor in the Premises or any part thereof might be
impaired. If any mechanic's, laborer's or
<PAGE>

materialmen's lien shall at any time be filed against the Premises or any part
thereof, Lessee, within thirty (30) days after notice of the filing thereof,
shall cause the same to be discharged of record or otherwise stayed by payment,
deposit, bond, order of a court of competent jurisdiction or otherwise. If
Lessee shall fail to contest by proper proceeding or cause such lien to be
discharged within such time period, then, in addition to any other right or
remedy, Lessor may, but shall not be obligated to procure the discharge of such
lien by deposit or by bonding proceedings and in such event Lessee shall
immediately pay the amount of such cost or expense to Lessor as Additional Rent,
hereunder, which amount shall be refundable upon completion and satisfaction of
the lien proceedings.

     R-62   Surrender. Lessee shall and will, upon the expiration of this Lease,
            ---------
or upon any re-entry by Lessor upon the Premises pursuant to the terms of this
Lease: (i) surrender and deliver up the Premises into the possession and use of
Lessor without delay, broom clean and in good order and condition and repair,
free and clear of all lettings and occupancy and free and clear of all liens,
charges and encumbrances, in the same condition as existed on the date hereof,
and, at the request of Lessor, shall remove all Lessee's Alterations, if any.

     R-63   Compliance with Laws.  Lessee, at its sole cost and expense, shall
            --------------------
promptly comply with all present and future statutes, codes, laws, acts,
ordinances, administrative and judicial orders, judgments, decrees, injunctions
and decisions, rules, resolutions, restrictions, regulations and requirements of
all federal, state, county, municipal and local governments, and all courts,
departments, commissions, boards, bureaus, agencies, authorities, officials and
offices thereof have or claiming jurisdiction overall or any part of the
property or the use, operation or occupancy thereof.

     R-64   Waiver of Liabilities.  To the full extent permitted by law, Lessee
            ---------------------
hereby releases and waives all claims against Lessor and its agents and
employees for in jury or damage for person, property or business sustained in or
about the Premises or the property by Lessee, its employees, agents, servants,
invitees, licensees or subtenants.

     R-65   Mutual Waiver of Subrogation Rights.  Whenever (a) any loss, cost,
            -----------------------------------
damage, or expense resulting from fire, explosion, or any other casualty or
occurrence is incurred by either of the parties to this Lease in connection with
the Premises, and (b) such party is then covered in whole or in part by
insurance with respect to such loss, cost, damage or expense, then the party so
insured hereby releases the other party from any liability it may have on
account of such loss, cost, damage, or expense to the extent of such amount
recovered by reason of such insurance and waives any right of subrogation which
might otherwise exist in or accrue to any person on account thereof, provided
that such release of liability and waiver of the right of subrogation shall not
be operative in any case where the effect thereof is to invalidate such
insurance coverage or increase the cost thereof.

     R-66   Late Charge. In the event any installment of Rent or Additional Rent
            -----------
is not paid on the due date thereof, Lessee shall pay to Lessor a late charge,
which shall be deemed to be Additional Rent hereunder, in an amount equal to
five percent (5%) of the amount of Rent or Additional Rent which was not timely
paid hereunder. This late charge shall be payable each and every calendar month
or part thereof thereafter until such Rent or Additional Rent is paid.
<PAGE>

     R-67   Applicable Law and Construction. The laws of the State of Illinois
            -------------------------------
shall govern the validity, performance and enforcement of this Lease. The
invalidity or unenforceability of any provision of this Lease shall not affect
or impair any other provision. The headings of the several articles contained
herein are for convenience only and do not explain, define, limit, amplify, aid
in the interpretation, construction or meaning of the provisions of this Lease.

     R-68   Binding Effect of Lease.  The covenants, agreements and obligations
            -----------------------
herein contained except as herein otherwise specifically provided, shall extend
to, bind and inure to the benefit of the parties hereto and their respective
personal representatives, heirs, successors and assigns.  Lessor, at any time
and from time to time, may make an assignment of its interest in this Lease,
and, in the event of such assignment and the assumption by the assignee of the
covenants and agreements to be performed by Lessor herein, Lessor and its
successors and assigns (other than the assignee of this Lease) shall be released
from any and all liability hereunder.

     R-69   Title. The title to the Premises is held in a land trust of which
            -----
High Hopes, Inc. is the beneficiary.

     R-70   Brokerage. The parties hereto represent and warrant to each other
            ---------
that they have not had any dealing with any real estate broker, salesman, agent,
finder or consultant in connection with the transaction contemplated hereby and
agree to indemnify and hold harmless the other against any claims for
commissions, fees, etc.

     R-71   Notice. Except as provided in R-7 above, any notice, request, demand
            ------
or consent required or permitted to be given under this Agreement shall be in
writing and shall be effective when delivered personally or when mailed, first
class, postage prepaid, certified or registered mail, return receipt requested,
as follows:

          If to Lessee:    Medichem Research, Inc.
                           12305 New Avenue
                           Lemont, IL 60546
                           Attention: John L. Flavin/Michael Flavin
                           Fax Number: 630/257-1505

          With a copy to:  _________________________
                           _________________________
                           _________________________


          If to Lessor:    High Hopes, Inc.
                           13420 King Road
                           Lemont, Illinois 60439
                           Attention: Deborah L. Roth, President
<PAGE>

          With a copy to:  Robert D. Tuerk, Esq.
                           Pretzel & Stouffer, Chartered
                           One S. Wacker Drive, Ste. 2500
                           Chicago, Illinois 60606
                           Fax Number: 312/346-8242

Any party hereto may change its address by giving notice in accordance with this
paragraph stating its new address to each of the other parties hereto.
Commencing with the giving of such notice, such newly designated address shall
be said party's address for purposes of all notices or other communications
required or permitted to be given pursuant to this Agreement.

     R-72   Option to Renew. Provided the Lessee is not in default under the
            ---------------
Lease, the Lessee is granted the option of renewing this Lease for an additional
five (5) year term from October 1, 2003, provided it gives the Lessor notice in
writing of the exercise of the option at least one hundred eighty (180) days
prior to the expiration of the Lease. If Lessee exercises such option to renew
then the Base Rental during the Renewal Period shall be Ten Dollars and 00/100
($10.00) a square foot per annum on 12,500 square feet, payable monthly in
advance, plus taxes, insurance and all other expenses of Lessee hereunder. The
exercise of the option shall be irrevocable. All conditions and covenants of the
Lease shall remain in full force and effect during the extended period, except
that the monthly rent shall be the then agreed upon increased rent for the
Premises.

     R-73   Environmental Indemnification.  The parties have executed an
            -----------------------------
Environmental Indemnity Agreement simultaneously with the Lease, which Agreement
is incorporated herein by reference.

     IN W1TNESS WHEREOF, the parties hereto have executed this Lease as of the
day and year first above written.

LESSOR:                                       LESSEE:

HIGH HOPES, INC., an Illinois corporation,    MEDICHEM RESEARCH, INC.
as beneficiary and agent of Standard Bank
and Trust, as Trustee under Trust Number
5310, dated August 9, 1991

By: _______________________________________   By: _____________________________
      Deborah L. Roth, not individually but
      as President
<PAGE>

                               PERSONAL GUARANTY

     For value received Michael Flavin, individually, hereby guarantees payment
of rent and prompt and satisfactory performance of all obligations under the
terms of the Industrial Building Lease Agreement set forth above subject to the
following:

     (1)  During the years one through three of the Lease, Guarantor will be
          responsible for 75% of the obligations under the Guaranty; and

     (2)  If Lessee is not in default under the Lease at the commencement of the
          fourth year of the term of the Lease, Guarantor will be responsible
          for 50% of the obligations under the Guaranty during years four
          through seven of the term of this Lease.

If Medichem Research, Inc. (Lessee) defaults in the payment of any installment
of the monthly base rent, or in the payment of any other obligation, or in the
performance of other obligations or covenant under the terms of the Lease,
Michael Flavin, individually, guarantees and shall pay the amount of such
installment and additional payment as above provided within ten (10) days after
receipt of written notice of default and demand for payment to Lessor.

     If Medichem Research, Inc. defaults in the performance of any additional
obligations under the Lease, Michael Flavin, individually shall pay to Lessor on
demand, all damages, costs, and expenses that Lessor is entitled to recover from
Medichem, as above provided, by reason of such default.

     This guarantee shall continue in force until all obligations of Medichem
Research, Inc. under the Lease have been satisfied or until Michael Flavin's
liability to Lessor under the lease has been completely discharged, whichever
first occurs.

     Michael Flavin, as guarantor, shall not be discharged from liability
hereunder as long as any claim by Lessor against Medichem Research, Inc. remains
outstanding.

     This guarantee. shall be binding on the legal representatives, successors.,
and assigns of the guarantor.  Notice of acceptance of this guarantee is
expressly waived.

     IN WITNESS WHEREOF, Michael Flavin, as guarantor, has executed this
guarantee at ________ on the __ day of October, 1996.



                                                  ______________________________
                                                  Michael Flavin

                       ENVIRONMENTAL INDEMNITY AGREEMENT

     THIS ENVIRONMENTAL INDEMNITY AGREEMENT ("Agreement") is dated this ___ day
of October, 1998, by and among MEDICHEM RESEARCH, INC., an Illinois corporation
(the "Company"), on the one hand and HIGH HOPES, INC. ("High Hopes") an Illinois
corporation, and STANDARD BANK & TRUST, as Trustee under Trust No. 5310
<PAGE>

("Standard") (High Hopes and Standard are hereinafter collectively referred to
as the "Indemnities"), under the following circumstances:

                                R E C I T A L S:
                                ---------------

     A.   Standard holds legal title to the real property and improvements
located in Lemont, Illinois, commonly known as 12301 New Avenue and 12305 New
Avenue and legally described on Exhibit A, attached hereto (the "Property");

     B.   High Hopes is the owner of 100% of the beneficial interest in the land
trust which hold the Property and holds the power of direction with respect to
such land trust;

     C.   The Company desires to enter into a new five (5) year Lease for Suite
J of 12305 New Avenue, Lemont, Illinois, upon such terms and conditions as
Standard, High Hopes and the Company may agree. Each such Agreement shall be
referred to as "the Lease" in this Agreement; and

     D.   High Hopes and Standard are willing to lease each Property to the
Company upon the terms set forth in the Lease, but as a condition to entering
into such Lease, require certain assurances and protections as set forth herein.

          NOW, THEREFORE, in order to induce the Indemnities to enter into the
Lease, and in consideration of the matters described in the foregoing Recitals,
for the sum of $10.00 and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

     1.   Recitals.      The Recitals are incorporated herein by this reference.
          --------
     2.   Definitions.   For purposes of this Agreement:
          -----------

          a)   "Hazardous Materials" means and includes those substances,
including without limitation, asbestos or any substance containing asbestos and
deemed hazardous under any Hazardous Material Law (defined below), the group of
organic compounds known as polychlorinated biphenyls, flammable explosives,
radioactive materials, chemicals known to cause cancer or reproductive toxicity,
pollutants, effluents, contaminants, emissions or related materials and any
items included in the definition of hazardous or toxic waste materials or
substances, under any Hazardous Material Law.

          b)   "Hazardous Material Laws" collectively means and includes any
present and future local, state and federal law relating to the environment and
environmental conditions, including without limitation, the Resource
Conservation and Recovery Act of 1976 ("RCRA"), 42 U.S.C. (S) 6901 et seq., the
                                                                   -- ---
Comprehensive Environmental Response, Compensation and Liability Act of 1980
("CERCLA"), 42 U.S.C. (S) 9601-9657, as amended by the Superfund Amendments and
Reauthorization Act of 1986 ("SARA"), the Hazardous Materials Transportation
Act, 49 U.S.C. (S) 6901, et seq., the Federal Water Pollution Control Act, 33
                         -- ---
U.S.C (S) 1251 et seq., the Clean Air Act, 42 U.S.C. (S) 741 et seq., the Clean
               -- ---                                        -- ---
Water Act, 33 U.S.C. (S) 7401, et seq., the Toxic Substances Control Act, 15
                               -- ---
U.S.C. (S)2601-2629, the Safe Drinking Water

                                       2
<PAGE>

Act, 42 U.S.C. (S) 300f-300j et seq., and all the regulations, orders and
                             -- ---
decrees now or hereafter promulgated thereunder.

     3.   Indemnification; Reimbursement; Environment Studies.
          ---------------------------------------------------

          a)   The Company hereby agrees and shall indemnify, defend, and hold
the Indemnities harmless from and against (i) any loss, liability, damage,
expense or claim arising under any Hazardous Material Law; and (ii) any other
loss, liability, damage, expense or claim which may be incurred by or asserted
against the Indemnities directly or indirectly resulting from the presence of
Hazardous Materials on the Property, in each case arising out of activities
carried on by the Company, its agents, employees, invitees, affiliates on the
Property from and after the date of the initial Lease between the parties
("Indemnity or Indemnities").

          b)   Any losses, liabilities, damages, injuries, costs, expenses
(including reasonable attorneys' fees and expenses) and claims for which the
Indemnities are to be indemnified hereunder shall be reimbursable to the
Indemnities as incurred.

          c)   Within twenty (20) days following completion of any actions
imposed upon the Company under any Hazardous Material Law, the Company shall
obtain and deliver to the Indemnities an environmental report in form and
substance acceptable to the Indemnities from an environmental professional
acceptable to Indemnities, stating that all required action has been taken, and
that upon completion of such action, the Property is, to the knowledge of such
professional, then in compliance with the applicable Hazardous Material Laws.

          d)   This indemnity is only valid as to those acts, omissions and
other conduct or failure to act that occurred while Company was in possession of
the property pursuant to the Renewal Lease.

     4.   Duration of Indemnity.   The liability of the Company under this
          ---------------------
agreement shall be limited to those Indemnities occurring during the term of the
prior Lease and the term of this Lease and shall not be construed to impose
liability on the Company for damages occurring after the date of termination of
this Lease or to impose liability on the Company for activities carried on, or
conditions which had occurred prior to commencement of the Lease dated June 9,
1994, or the Lease dated February, 1995, and the Environmental Indemnity
executed therewith. Such claims made shall be valid against the Company if such
damage resulted from the Company's tenancy of the property.

     5.   Notice from the Company. The Company shall promptly after obtaining
          -----------------------
knowledge thereof advise the Indemnities in writing of (i) any governmental or
regulatory actions instituted or threatened in writing under any Hazardous
Material Law affecting the Property or any Indemnity hereunder including,
without limitation, any notice of inspection, abatement or noncompliance, (ii)
all claims made or threatened in writing by any third party against the Company
or the Property relating to any Hazardous Material or, a violation of a
Hazardous Material Law, and (iii) the Company's discovery of any occurrence or
condition on the Property or any real property adjoining or in the vicinity of
the Property which could subject the Company or the Property to a claim under
any Hazardous Material Law, or to any restrictions on ownership, occupancy,
transferability or use of the Property under any Hazardous Material

                                       3
<PAGE>

Law. The Company shall deliver to the Indemnities any documentation or records
as the Indemnities may reasonably request and which are susceptible of being
obtained by the Company without undue cost or expense and without the necessity
for initiating legal proceedings to obtain the same.

     6.   Claims.
          ------

          a)   In the event the Indemnities desire to make a claim against the
Company under this Agreement, the Indemnities shall give prompt notice to the
Company of the institution of any actions, suits or proceedings and demands at
any time instituted against, made or threatened upon the indemnities or Company,
or any state of facts known to Indemnities in connection with which the
Indemnities would claim Indemnification under this Agreement. However, the
failure of any Indemnities to give notice as provided herein shall not relieve
the Company of its obligations under this Agreement, except to the extent that
the Company's position has been materially adversely affected by such failure.

          b)   The Company shall have the right, but not the obligation, to
assume the defense of any action suit or proceeding for which there is a claim
for indemnification hereunder, provided that the Company affirmatively assumes,
in writing, the obligation to pay the loss, cost, damage and expenses arising
from the claim of which defense is assumed.

          c)   If the Company does not assume the defense of any such action,
suit or proceeding before the earlier to occur of (i) the thirtieth (30th) day
after receipt of notice, or (ii) five (5) days or shorter period of time, if
necessary, before the date an answer or similar response to an initiation of
judicial proceedings is due, or (iii) five (5) days or any shorter period of
time, if necessary, before the date upon which remedial or clean-up action must
be taken pursuant to court order or provision of any applicable law or
regulation, the Indemnities shall, upon further notice to the Company, have the
right to undertake, at the expense of the Company, the defense, compromise, or
settlement of such claim on behalf of or for their own account and/or risk of
the Company subject to the right of the Company to assume the defense of such
claim at any time prior to settlement, compromise or final determination
thereof.

          d)   The exercise of the right of the Company to assume the defense
pursuant to section 6(c) above of such claim, once the Indemnities have
undertaken the defense, compromise or settlement of such claim in accordance
herewith, shall not prejudice the Indemnities.

          e)   Anything in this Section 6 to the contrary notwithstanding, (i)
if there is a reasonable probability that such an action, suit or proceeding may
materially and adversely affect Indemnities, Indemnifies shall have the right to
defend, at their own cost and expense, and to compromise or settle such action,
suit or proceeding; provided however, that the Company shall have given written
consent for such compromise or settlement, and (ii) the Company shall not,
without the written consent of the Indemnities, which consent may not be
unreasonably withheld, settle or compromise any such action, suit or proceeding
or consent to the entry of any judgment.

          f)   The Company shall remain fully liable for its obligations of
indemnity despite any action by the Indemnities under the proceeding sentence
with respect to liquidated

                                       4
<PAGE>

claims, if within thirty (30) days the Company has not contested said claim in
writing, the Company will pay the full amount thereof in cash within ten (10)
days after the expiration of such period.

          g)   Each party shall be responsible for its own expenses in any
arbitration or litigation between the parties hereto and any expenses not
attributable to either party, such as the cost of a third-party arbitrator (in
the event that the parties agree to arbitration), shall be shared equally by the
parties. Notwithstanding the foregoing, in the event that the Indemnities shall
incur any expenses or costs as a result of the Company's failure to fulfill or
perform its obligations under this Agreement, then the Company shall be
responsible for all such costs and expenses, including attorney's fees, so
incurred by Indemnities, and shall indemnify and hold harmless Indemnities from
and against all such costs and expenses.

     7.   Indemnities represent and warrant to the Company that they have not
caused any adverse environmental effects or conditions to the subject property
from the time they acquired legal/equitable title to the property to the date of
the execution of the Renewal Lease. Furthermore, Indemnities will indemnify
Company to the extent that it is shown by virtue of a court decision that the
Indemnities caused environmental hazards to occur to the subject property while
they were the legal and equitable owner.

     8.   Obligations Absolute; Waivers.
          -----------------------------

     a)   The obligations of the Company hereunder shall remain in full force
without regard to, and shall not be impaired by the following, any of which may
be taken in such manner, upon such terms and at such times as the Indemnities,
in their sole discretion, deem advisable without the consent of, or notice to,
the Company, nor shall any of the following give the Company any recourse or
right of action against the Indemnities: (i) any express or implied amendment,
modification, renewal, addition, supplement, extension or acceleration of or to
the lease; (ii) any exercise or non-exercise by the Indemnities of any right or
privilege under the Lease dated June 9, 1994 and the Renewal Lease; (iii) any
bankruptcy, insolvency, reorganization, composition, adjustment, dissolution,
liquidation or other like proceeding relating to the Company, or any affiliate
of the Company or any proceeding, whether or not the Company shall have had
notice or knowledge of any of the foregoing; or (iv) any assignment or other
transfer of the Renewal Lease, in whole or in part. It is understood that any of
the foregoing do not diminish any rights the Company may have under the Renewal
Lease.

     9.   No Waiver.  The Company's obligations hereunder shall, in no way be
          ---------
impaired, reduced or released by reason of the Indemnities' omission or delay to
exercise any right described herein or in connection with any notice (except for
notices required of the Indemnities pursuant to this Agreement), demand, warning
or claim regarding violations of any Hazardous Material Laws governing the
Property.

     10.  Successors and Assigns. Subject to the provisions of paragraph 4, this
          ----------------------
Agreement and the Indemnities contained in this Agreement shall be continuing,
irrevocable and binding on the Company and its successors and assigns, and this
Agreement shall be binding upon and shall inure to the benefit of the
Indemnities, and their respective successors and

                                       5
<PAGE>

assigns. The dissolution of the Company shall not affect this Agreement or the
Company's obligations hereunder.

     11.  Notices.  Any notices which any party may be required, or may desire,
          -------
to shall, unless otherwise specified, be in writing and shall be (i) hand
delivered, effective upon receipt, (ii) sent by United States Express Mail or by
private overnight courier, effective upon receipt, or (iii) served by certified
mail, postage prepaid, return receipt requested and addressed as follows:

          In the case of the High Hopes and/or Standard, to:

               Debbie Roth, President
               High Hopes, Inc.
               13420 King Road
               Lemont, Illinois 60439

          with copies to:

               Robert D. Tuerk, Esq.
               Pretzel & Stouffer, Chtd.
               One S. Wacker Drive, Suite 2500
               Chicago, Illinois 60606

          In the case of the Company, to,

               John Flavin
               Medichem Research, Inc.
               12305 New Avenue
               Lemont, Illinois 60546

or such other address(es) or addressee(s) as the party to be served with notice
may have furnished to the other party in accordance with this paragraph.

     12.  Entire Agreement.  This Agreement constitutes the entire Agreement
          ----------------
between the parties with respect to the subject matter hereof and supersedes all
prior agreements and understandings, both written and oral, between the parties
with respect to the subject matter contained in this Agreement.

     13.  Amendment and Waiver.  This Agreement may not be amended except by a
          --------------------
writing signed by all parties.  Observance of any term of this Agreement may be
waived only with the written consent of the Indemnities.

     14.  Governing Law. THIS AGREEMENT SHALL BE GOVERNED AND CONSTRUED AS TO
          -------------
INTERPRETATION, ENFORCEMENT, VALIDITY, CONSTRUCTION, EFFECT AND IN ALL OTHER
RESPECTS BY THE LAW, STATUTES AND DECISIONS OF THE STATE OF ILLINOIS.

                                       6
<PAGE>

     15.     Counterparts.  This Agreement may be executed in any number of
             ------------
counterparts, each of which shall be deemed an original, and all of which taken
together shall constitute one and the same agreement.

     15(a).  Indemnities' Cooperation.  To the extent necessary, should any
             ------------------------
claim arise by anyone other than Indemnities, Indemnities will offer their full
cooperation with any defense asserted by the Company.

     16.     Severability.  All provisions contained in this Agreement are
             ------------
severable and the invalidity or unenforceability of any provision shall not
affect or impair the validity or enforceability of the remaining provisions of
this Agreement.

     17.     Headings.  The descriptive headings of the paragraphs of this
             --------
Agreement are inserted for convenience only and do not constitute a part of this
Agreement.

     18.     Execution by Land Trust.  The parties shall endeavor to obtain the
             -----------------------
signature of Standard Bank and Trust as Trustee under Trust Agreement No. 5310
as soon as reasonably practicable. Pending execution of this Agreement by such
Land Trust, the parties acknowledge and agree that execution of this Agreement
by the Company and by High Hopes, the beneficiary of such Land Trust and holder
of the power of direction therefor, shall be sufficient to constitute this
Agreement as an enforceable contract against the Company and High Hopes as
beneficiary of such Land Trust.

             IN WITNESS WHEREOF, this Agreement has been executed as of the date
first above written.

                                   MEDICHEM RESEARCH, INC.
                                   an Illinois corporation ("Company")


                                   By:______________________________________

                                   Title:___________________________________



                                   STANDARD BANK AND TRUST, not
                                   individually but as Trustee u/t/a
                                   number 5310 ("Standard")


                                   By:______________________________________

                                   Title:___________________________________

                                       7
<PAGE>

                                   HIGH HOPES, INC.,
                                   an Illinois corporation ("High Hopes")


                                   By:______________________________________

                                   Title:___________________________________

This document prepared by:
-------------------------
Robert D. Tuerk, Esq.
Pretzel & Stouffer, Chtd.
One S. Wacker Drive, Suite 2500
Chicago, Illinois 60606

                                       8
<PAGE>

                           INDUSTRIAL BUILDING LEASE

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
  DATE OF LEASE                               TERM OF LEASE                           MONTHLY RENT
---------------------------------------------------------------------------------------------------------------------
<S>                                    <C>                   <C>                    <C>
                                        BEGINNING               ENDING
                                       -----------------------------------
May         , 1999                     July 6, 1999          June 30, 2000          See paragraph R2 of Rider
---------------------------------------------------------------------------------------------------------------------
Location of Premises:
Suites F
12305 New Avenue, Lemont, Illinois
---------------------------------------------------------------------------------------------------------------------
Purpose:
Performing Early Stage Pharmaceutical R&D
---------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<S>                 <C>                                         <C>             <C>
LESSEE                                                            LESSOR
NAME                Medichem Research, Inc. an Illinois         NAME AND        High Hopes, Inc., an Illinois
                    corporation                                 BUSINESS        corporation as agent for First
                                                                                National Bank of Joliet, Trust No.
                                                                                5175
ADDRESS             12305 New Avenue                            ADDRESS         13420 South King Road
                    Lemont, Illinois 60439                                      Lemont, Illinois 60439
</TABLE>

     In consideration of the mutual covenants and agreements herein stated,
Lessor hereby leases to Lessee and Lessee hereby leases from Lessor solely for
the above purpose the premises designated above (the "Premises"), together with
the appurtenances thereto, for the above Term.


RENT                 93. Lessee shall pay Lessor or Lessor's agent as rent for
                         the Premises the sum stated above, monthly in advance,
                         until termination of this lease, at Lessor's address
                         stated above or such other address as Lessor may
                         designate in writing.

CONDITION AND        94. Lessee has examined and knows the condition of the
UPKEEP OF                Premises and has received the same in good order and
 PREMISES                repair, and acknowledges that no representations as to
                         the condition and repair thereof have been made by
                         Lessor, or his agent, prior to or at the execution of
                         this lease that are not herein expressed; Lessee will
                         keep the Premises including all appurtenances, in good
                         repair, replacing all broken glass with glass of the
                         same size and quality as that broken, and will replace
                         all damaged plumbing fixtures with others of equal
                         quality, and will keep the Premises, including
                         adjoining alleys, in a clean and healthful condition
                         according to the applicable municipal ordinances and
                         the direction of the proper public officers during the
                         term of this lease at Lessee's expense, and will
                         without injury to the roof, remove all snow and ice
                         from the same when necessary, and will remove the snow
                         and ice from the sidewalk abutting the Premises; and
                         upon the termination of this lease, in any way, will
                         yield up the Premises to Lessor, in good condition and
                         repair, loss by fire and ordinary wear excepted, and
                         will deliver the keys therefor at the place of payment
                         of said rent.

LESSEE NOT TO        95. Lessee will not allow the Premises to be used for any
MISUSE; SUBLET;          purpose other than that hereinbefore specified, and
ASSIGNMENT               will not load floors with machinery or goods beyond the
                         floor load rating prescribed by applicable municipal
                         ordinances, and will not allow the Premises to be
                         occupied in whole, or in part, by any other person, and
                         will not sublet the same or any part thereof, nor
                         assign this lease without in each case the written
                         consent of the Lessor first had, which shall not be
                         unreasonably withheld or delayed, and Lessee will not
                         permit any transfer by operation of law of the interest
                         in the Premises acquired through this lease, and will
                         not permit the Premises to be used for any unlawful
                         purpose, or for any purpose that will injure

                                       9
<PAGE>

                         the reputation of the building or increase the fire
                         hazard of the building, or disturb the tenants or the
                         neighborhood, and will not permit the same to remain
                         vacant or unoccupied for more than ten consecutive
                         days; and will not allow any signs, cards or placards
                         to be posted, or placed thereon, nor permit any
                         alteration of or addition to any part of the Premises,
                         except by written consent of Lessor; all alterations
                         and additions to the Premises shall remain for the
                         benefit of Lessor unless otherwise provided in the
                         consent aforesaid.

MECHANIC'S LIEN      96.  Lessee will not permit any mechanic's liens to be
                          placed upon the Premises or any building or
                          improvement thereon without the written consent of
                          Lessor during the term hereof, and in case of the
                          filing of such lien Lessee will promptly pay same. If
                          default in payment thereof shall continue for thirty
                          (30) days after written notice thereof from Lessor to
                          the Lessee, the Lessor shall have the right and
                          privilege at Lessor's option of paying the same or any
                          portion thereof without inquiry as to the validity
                          thereof, and any amounts so paid, including expenses
                          and interest, shall be so much additional indebtedness
                          hereunder due from Lessee to Lessor and shall be
                          repaid to Lessor immediately on rendition of bill
                          therefor.

INDEMNITY FOR        97.  Lessee covenants and agrees that he will protect and
ACCIDENTS                 save and keep the Lessor forever harmless and
                          indemnified against and from any penalty or damages or
                          charges imposed for any violation of any laws or
                          ordinances, whether occasioned by the neglect of
                          Lessee or those holding under Lessee, and that Lessee
                          will at all times protect, indemnify and save and keep
                          harmless the Lessor against and from any and all loss,
                          cost, damage or expense, arising out of or from any
                          accident or other occurrence on or about the Premises,
                          causing injury to any person or property whomsoever or
                          whatsoever and will protect, indemnify and save and
                          keep harmless the Lessor against and from any and all
                          claims and against and from any and all loss, cost,
                          damage or expense arising out of any failure of Lessee
                          in any respect to comply with and perform all the
                          requirements and provisions thereof.

NON-LIABILITY OF     98.  Except as provided by Illinois statute, Lessor shall
LESSOR                    not be liable for any damage occasioned by failure to
                          keep the Premises in repair, nor for any damage done
                          or occasioned by or from plumbing, gas, water
                          sprinkler, steam or other pipes or sewerage or the
                          bursting, leaking or running of any pipes, tank or
                          plumbing fixtures, in, above, upon or about Premises
                          or any building or improvement thereon nor for any
                          damage occasioned by water, snow or ice being upon or
                          coming through the roof, skylights, trap door or
                          otherwise, nor for any damages arising from acts or
                          neglect of any owners or occupants of adjacent or
                          contiguous property.

WATER, GAS AND       99.  Lessee will pay, in addition to the rent above speci-
ELECTRIC CHARGES          fied, all water rents, gas and electric light and
                          power bills taxed, levied or charged on the Premises,
                          for and during the time for which this lease is
                          granted, and in case said water rents and bills for
                          gas, electric light and power shall not be paid when
                          due. Lessor shall have the right to pay the same,
                          which amounts so paid, together with any sums paid by
                          Lessor to keep the Premises in a clean and healthy
                          condition, as above specified, are declared to be so
                          much additional rent and payable with the installment
                          of rent next due thereafter and shall be generally
                          treated as rent for all purposes of this Agreement.

KEEP PREMISES IN     100. Lessor shall not be obliged to incur any expense for
 REPAIR                   repairing any improvements upon said demised pre-mises
                          or connected therewith, and the Lessee at his own
                          expense will keep all improvements in good repair
                          (injury by fire, or other causes beyond Lessee's
                          control excepted) as well as in a good tenantable and

                                       10
<PAGE>

                          wholesome condition, and will comply with all local or
                          general regulations, laws and ordinances applicable
                          thereto, as well as lawful requirements of all
                          competent authorities in that behalf. Lessee will, as
                          far as possible, keep said improvements from
                          deterioration due to ordinary wear and from falling
                          temporarily out of repair. If Lessee does not make
                          repairs as required hereunder promptly and adequately,
                          Lessor may but need not make such repairs and pay the
                          costs thereof, and such costs shall be so much
                          additional rent immediately due from and payable by
                          Lessee to Lessor.

ACCESS TO PREMISES   101.  Lessee will allow Lessor free access to the Premises
                           for the purpose of examining or exhibiting the same,
                           or to make any needful repairs, or alterations
                           thereof which Lessor may see fit to make and will
                           allow to have placed upon the Premises at all times
                           notice of "For Sale" and "To Rent", and will not
                           interfere with the same.

ABANDONMENT AND      102.  If Lessee shall abandon or vacate the Premises, or
RELETTING                  if Lessee's right to  occupy the Premises be termin-
                           ated by Lessor by reason of Lessee's breach of any of
                           the covenants herein, the same may be re-let by
                           Lessor for such rent and upon such terms as Lessor
                           may deem fit; and if a sufficient sum shall not thus
                           be realized monthly, after paying the expenses of
                           such re-letting and collecting to satisfy the rent
                           hereby reserved, Lessee agrees to satisfy and pay all
                           deficiency monthly during the remaining period of
                           this lease.

HOLDING OVER         103.  Lessee will, at the termination of this lease by
                           lapse of time or otherwise, yield up immediate
                           possession to Lessor, and failing so to do, will pay
                           as liquidated damages, for the whole time such
                           possession is withheld, the sum Three Hundred Fifty
                           Dollars ($350.00) per day; but the provisions of this
                           clause shall not be held as a waiver by Lessor of any
                           right of re-entry as hereinafter set forth; nor shall
                           the receipt of said rent or any part thereof, or any
                           other act in apparent affirmance of tenancy, operate
                           as a waiver of the right to forfeit this lease and
                           the term hereby granted from the period still
                           unexpired, for a breach of any of the covenants
                           herein.

EXTRA FIRE HAZARD    104.  There shall not be allowed, kept, or used on the
                           Premises any inflammable or explosive liquids or
                           materials save such as may be necessary for use in
                           the business of the Lessee, and in such case, any
                           such substances shall be delivered and stored in
                           amount, and used, in accordance with the rules of the
                           applicable Board of Underwriters and statutes and
                           ordinances now or hereafter in force.

NO RENT REDUCTION    105.  Lessee's covenant to pay rent is and shall be
OR SET OFF                 independent of each and every other covenant of this
                           lease. Lessee agrees that any claim by Lessee against
                           Lessor shall not be deducted from rent nor set off
                           against any claim for rent in any action.

RENT AFTER NOTICE    106.  It is further agreed, by the parties hereto, that
OR SUIT                    after the service of notice, or the commencement of a
                           suit or after final judgment for possession of the
                           Premises, Lessor may receive and collect any rent
                           due, and the payment of said rent shall not waive or
                           affect said notice, said suit, or said judgment.

PAYMENT OF COSTS     107.  Lessee will pay and discharge all reasonable costs,
                           attorney's fees and expenses that shall be made and
                           incurred by Lessor in enforcing the covenants and
                           agreements of this lease

RIGHTS CUMULATIVE    108.  The rights and remedies of Lessor under this lease
                           are cumulative. The exercise or use of any one or
                           more thereof shall not bar Lessor from exercise or
                           use of any other right or remedy provided herein or
                           otherwise provided by law, nor shall

                                       11
<PAGE>

                           exercise nor use of any right or remedy by Lessor
                           waive any other right or remedy.

FIRE AND CASUALTY    109.  In case the Premises shall be rendered untenantable
                           during the term of this lease by fire or other
                           casualty, Lessor at his option may terminate the
                           lease or repair the Premises within 60 days
                           thereafter. If Lessor elects to repair, this lease
                           shall remain in effect provided such repairs are
                           completed within said time. If Lessor shall not have
                           repaired the Premises within said time, then at the
                           end of such time the term hereby created shall
                           terminate. If this lease is terminated by reason of
                           fire or casualty as herein specified, rent shall be
                           apportioned and paid to the day of such fire or other
                           casualty.

SUBORDINATION        110.  This lease is subordinate to all mortgages which may
                           now or hereafter affect the Premises.

PLURALS;             111.  The words "Lessor" and "Lessee" wherever herein
SUCCESSORS                 occurring and used shall be construed to mean
                           "Lessors' and "Lessees" in case more than one person
                           constitutes either party to this lease; and all the
                           covenants and agreements contained shall be binding
                           upon, and inure to, their respective successors,
                           heirs, executors, administrators and assigns and may
                           be exercised by his or their attorney or agent.

SEVERABILITY         112.  Wherever possible each provision of this lease shall
                           be interpreted in such manner as to be effective and
                           valid under applicable law, but if any provision of
                           this lease shall be prohibited by or invalid under
                           applicable law, such provision shall be ineffective
                           to the extent of such prohibition or invalidity,
                           without invalidating the remainder of such provision
                           or the remaining provisions of this lease.

                     113.  Rider attached hereto is incorporated herein

                     114.  Lessee acknowledges that Lessor has approximately 4.6
                           acres of property, upon which Lessee's building shall
                           be erected, and that Lessee shall, in no way,
                           interfere with Lessor's ability and right to utilize
                           rent, sell, dispose of, assign, or otherwise encumber
                           or affect the property that is not leased to Lessee.

                     115.  Lessee herein agrees to reimburse Lessor for any and
                           all special binders, endorsements and other
                           modifications and additions to Lessor's Owners
                           Insurance Policy that are directly attributable to
                           Lessee's business and shall generally be treated as
                           additional rent and additional insurance
                           reimbursement for all purposes of this Agreement.

     If this instrument is executed by a corporation, such execution has been
authorized by a duly adopted resolution of the Board of Directors of such
corporation.

     This lease consists of ______ pages numbered 1 to ______, including a rider
consisting ______ pages, identified by Lessor and Lessee.

                                       12
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have executed this instrument as of
the Date of Lease stated above.

LESSEE:  Medichem Research, Inc. an         LESSOR:  High Hopes, Inc., an
Illinois corporation                                 Illinois corporation as
                                                     agent for First National
                                                     Bank of Joliet, Trust No.
                                                     5175
_______________________________(SEAL)       ______________________________(SEAL)

_______________________________(SEAL)       ______________________________(SEAL)



                             ASSIGNMENT BY LESSOR

       On this ________________________, 20___, for value received, Lessor
hereby transfers, assigns and sets over to _________________________ all right,
title and interest in and to the above Lease and the rent thereby reserved,
except rent due and payable prior to _____________, 20__.


                                                 _________________________(SEAL)

                                                 _________________________(SEAL)


                                   GUARANTEE

     On this _____________________, 20___, in consideration of Ten Dollars
($10.00) and other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, the undersigned Guarantor hereby guarantees the
payment of rent and performance by Lessee, Lessee's heirs, executors,
administrators, successors or assigns of all covenants and agreements of the
above Lease.


                                                 _________________________(SEAL)

                                                 _________________________(SEAL)


                                       13
<PAGE>

                RIDER TO THAT CERTAIN INDUSTRIAL BUILDING LEASE
                          DATED AS OF FEBRUARY 1, 1999
                        BY AND BETWEEN HIGH HOPES, INC.,
                  AS AGENT FOR FIRST NATIONAL BANK OF JOLIET,
                      AS TRUSTEE UNDER TRUST NUMBER 5175,
                AS LESSOR AND MEDICHEM RESEARCH, INC., AS LESSEE
                         FOR SUITE F, 12301 NEW AVENUE

     R-74  Conflicts. In the event of a conflict between the terms of this
           ---------
Rider and printed lease form to which it is attached, the terms of this Rider
shall control.

     R-75  Payment of Rent.
           ---------------

     (a)   Lessee shall pay monthly base rent to Lessor in advance on the first
day of each month. In the event that any installment of rent shall not be paid
within ten (10) days of the due date, Lessee shall pay to Lessor a late payment
penalty in the amount of 5% of the installment of rent.

     (b)   The amount of rent to be paid hereunder shall be as follows:

               Period              Monthly Rent Due
               ------              ----------------

               Monthly             $3,125.00

           plus the items as set forth below.

     (c)   The first month's rent, prorated, shall be due and payable on the
Commencement Date of this Lease.

     (d)   In addition to the monthly rent due under this Lease, Lessee agrees
to pay promptly when due as additional rent hereunder, its share of the increase
in real estate taxes beginning on July 6, 1999, over the Base Year's real estate
taxes for the Premises. Lessee shall also pay its share of all special
assessments or governmental impositions and charges of every kind and nature
levied or assessed on the Premises or any part thereof. For the purposes of this
subparagraph, the Base Year shall be the taxes paid in 1998 on a cash basis and
the share of real estate taxes due from Tenant shall be based on the square
footage of the Building on the Premises, divided by fifty percent (50%). Lessee
shall pay all utility charges to the Premises which include, but are not limited
to, charges and assessments for water, gas, fuel, electric, and refuse disposal
services, for each calendar year falling within the term, Lessor shall notify
Lessee of the time and place payment to the relevant government authorities is
required. In addition, Lessee shall pay its pro-rata share of the cost of the
common maintenance of the exterior lighting, well, and aerobic filtration plant.

           In addition to the monthly rent due under this Lease, Lessee agrees
           to pay promptly when due as additional rent hereunder, its share of
           the cost and expense for insurance premiums for the Premises. Lessor
           shall notify Lessee when payment of its share of the. insurance
           premiums are required.

           If the Lessee defaults in the payment of its share of any imposition,
           charge or insurance premium, as required in this Subparagraph and
           such default continues for thirty (30) days after written notice,
           Lessor or its agent may pay such imposition or charge and the amount
           so paid plus interest at the then current prime rate charged by First
           National Bank of Chicago, shall be deemed additional rent hereunder
           payable on demand. Such payment by Lessor shall not constitute a
           waiver of Lessee's default nor of Lessor's rights hereunder. The
           provisions of this Subparagraph shall survive the termination of this
           Lease.

     R-76  Security Deposit.  The parties agree that there shall be no security
           ----------------
deposit under this Lease.
<PAGE>

     R-77  Premises.  A Legal Description of the Premises is attached hereto as
           --------
Exhibit A, incorporated herein.  Lessee acknowledges and agrees that it shall
only have the right to the use and possession of the building and the
immediately adjacent parking lot and sidewalks and shall have no rights to any
other portion of the land upon which Premises is located.

     R-78  Lessee's Business. Lessor generally knows and generally has a
           -----------------
layman's understanding of the nature of Lessee's business, namely, to carry out
chemical synthesis in a laboratory setting. The synthesis include but are not
limited to the use of hazardous and/or flammable chemical compounds. The use and
storage of these materials will be in conformance with all federal, state and
local laws, regulations and ordinances. Lessor further understands that Lessee
will seek to make improvements to the space in the form of chemical wet
laboratories. These laboratories will be constructed in accordance with any and
all pertinent laws, regulations and codes, whether federal, state, local,
municipal or any governmental arm or agency thereunder, Lessor will not seek to
limit Lessee in regard to is business operations and expansion as long as said
business operations and expansions are in accordance with all federal state and
local laws, regulations and ordinances and does not create a nuisance to other
interested parties or tenants.

     R-79  Insurance.  Lessee shall reimburse Lessor for the cost to procure and
           ---------
maintain in full force and effect, the following insurance in respect of the
Premises, all of which insurance shall be issued in the name of Lessor and
Lessee and with loss payable clauses thereof in favor of Lessor or Lessee as
their interests may appear. Each party shall provide the other with copies of
all policies procured hereunder and paid receipts therefor within ten (10) days
after the term begins and after the beginning of each renewal term.

     Lessor shall obtain Insurance against loss by fire and all other casualties
by standard fire and extended coverage (especially, but not exclusively covering
loss or damage by windstorm, hail, explosion, riot, civil commotion, or damage
from aircraft or vehicles and smoke damage) with standard vandalism and
malicious mischief riders, and endorsement for one (1) year's rent (including
expenses) loss insurance covering losses due to casualty in responsible
insurance companies for the full replacement value of the improvements of which
the Premises are a part. Lessor shall be compensated for the loss of abated rent
by having the proceeds of rent insurance paid to the Lessor.  All policies of
insurance shall waive subrogation against Lessor and Lessee and shall remain
with Lessor and shall be issued in the name of Lessor, With a loss payable
clause in favor of Lessor and with a deductible of no more than $10,000.00.
Lessor and Lessee waive and release any claims against each other for losses due
to fire or other casualty, or other perils insured by standard policies for
extended coverage, vandalism and malicious mischief.  Lessor reserves the right
to have a standard non-contributory mortgage clause in said policy.

     Lessee shall obtain at its expense:

     (a)  Public Liability or Owner, Landlord and Tenant Liability insurance
 with minimum limits of $1,000,000.00 for injury or death to any one person,
 $2,000,000.00 for injury to more than one person resulting from the same
 occurrence and $500,000.00 for damage to property, which policy shall name
 Lessor as an additional named insured;

     (b)  Any insurance covering risks which at the time are reasonably required
to be covered by investors or mortgage lenders with respect to the Premises and
which are customarily obtained in the Chicago Metropolitan area for buildings
such as the subject building.

     Lessee shall be responsible for reimbursing Lessor for the deductible
portions of any policy, to be provided hereunder, it being the agreement of the
parties that the Lessor be fully covered for all amounts, including any
deductible.  Copies of the Certificate of the Insurance showing Lessor as an
additional named insured on the liability policy shall be delivered to Lessor.

     Lessee shall also obtain in its own name insurance on all of Lessee's
contents and trade fixtures, machinery, equipment, furniture and furnishings in
the Premises to the full extent of their replacement cost under standard fire
and extended coverage insurance, including, without limitation, vandalism and
malicious mischief endorsements.

                                       2
<PAGE>

     Lessor shall maintain the fire and casualty insurance on the Premise and
the building in which the Premises is located in such amounts and with such
insurance carriers as Lessor deems appropriate.  Lessor and Lessee acknowledge
that Lessee has received a statement as to Lessor's current insurance coverage.
Lessor shall obtain and maintain such insurance required to be maintained by
this Lease without waiving any of Lessor's rights under this Lease and Lessor's
damages for Lessee's failure or refusal shall not be limited to the amount of
the insurance premiums which the Lessee has failed to pay.  Sums advanced by
Lessor, or its agent, for premiums together with interest thereon at the current
prime rate of interest charged by First National Bank of Chicago shall be deemed
additional rent payable on demand.  If Lessee is not in default upon the
termination of this Lease, Lessee shall then be entitled to a refund of the then
unearned insurance premiums, if any. All insurance policies shall provide that
the insurance companies issuing them shall not cancel them for nonpayment of
premiums or otherwise without first giving the Lessee and Lessor at least thirty
(30) days prior written notice of cancellation.  In the event Lessee fails to
obtain and maintain the insurance required to be obtained by Lessee hereunder,
Lessor may, but shall not be required to, obtain and maintain the same and the
cost of such insurance plus interest shall be additional rent due hereunder.

     R-80  A.  Right of First Refusal to Lease Adjoining Space.
               -----------------------------------------------

     (1)  Lessee acknowledges that Lessor has entered into a Lease for Suite D
in Building 3.

     (2)  In the event of the expiration or termination of any such existing
Lease for a remaining suite, the Lessor shall offer to Lessee a right of first
refusal to lease such remaining space at the then current market rent. Lessor
shall provide Lessee with a "Notice of Right of First Refusal" for such space as
it becomes available and Lessee shall have five (5) business days to agree with
Lessor to rent such space. Failure to agree shall terminate Lessee's right of
first refusal for such space offered at that time.

     B.   Lessee's Representation and Warranty Regarding Water Waste Disposal.
          -------------------------------------------------------------------

     (1)  Lessee shall only allow water waste from sink and toilet to be drained
into existing well/septic system. All other liquid drainage, whether from
laboratory sinks, basins, or other items utilized in the Lessee's laboratory
process, shall be removed by Lessee, at Lessee's sole expense, via a licensed
and certified hazardous/toxic/chemical waste or special waste removal service.

     (2)  Lessee acknowledges that technological advances may, during the term
of this Lease, allow for complete purification of lab related waste so as to
allow the same to be discharged in accordance with any and all applicable
federal, state, and local laws, statutes, codes, regulations and ordinances.
Therefore, Section R-7(B)(1) may be amended, upon the written mutual consent of
Lessor and Lessee, to allow for the utilization of newer waste treatment
technologies, which shall be installed at the sole expense of Lessee.

     R-81 Lessee's Alterations.  Lessor's agent shall be provided with the
          --------------------
opportunity to bid on any and all further interior buildout work.  Furthermore,
any and all tenant buildout work not performed by Lessor's agent shall be
subject to Lessor's agent's prior approval with such approval not being
unreasonably withheld.  Additionally, plans for any construction work within the
subject Premises including all drawings, sketches, layouts and designs shall be
tendered to Lessor's agent before construction begins for agent's approval.
Lessee shall not make any "Lessee's Alterations" without the prior written
consent of Lessor, which consent shall not be unreasonably withheld.  Lessee's
Alterations shall be made at Lessee's sole cost and expense.  As used herein,
the term "Lessee's Alterations" shall mean each and every (a) demolition of the
whole or any part of any improvement now or hereafter erected on the Premises;
(b) excavation at any time made or to be made in or about the Premises (c)
repair, addition, betterment, change, improvement and rebuilding made of, to,
in, on or about the Premises or any part thereof; and (d) construction of any
additional improvements upon the Premises.

     It shall be a condition precedent to Lessor's consent that Lessee furnish
in writing to Lessor, a description of the work to be done at least twenty (20)
days prior to the commencement of any Lessee's Alterations. It shall be a
further condition precedent to Lessor's approval of any Lessee's Alterations
that there shall be no written notice of default hereunder.

                                       3
<PAGE>

     Before any Lessee's Alterations are begun, Lessee shall procure at its sole
cost and expense, all necessary licenses, permits and inspections from all
governmental authorities or agencies having jurisdiction over the Premises, and
shall, upon demand, deliver photostatic copies thereof to Lessor.  All Lessee's
Alterations shall be made in compliance with all laws, rules, regulations,
ordinances promulgated by any state, local or other governmental body having
jurisdiction over the Premises.  Lessee shall pay all costs, expenses and
liabilities arising out of or in connection with, or by reason of any Lessee's
Alterations and shall keep the Premises free and clear from all liens, claims,
encumbrances in any way arising out of, or in connection with or by reason of
any Lessee's Alterations.  No Lessee's Alterations shall be made that would
render title to the Premises or any part thereof valued as of the termination of
the Lease unmarketable or which would reduce the value of the Premises.  Lessor
shall not be required to make any contribution to the cost of any Lessee's
Alterations or any part thereof.  Lessee covenants that Lessor shall not be
required to pay any cost, expense or liability arising out of or in connection
with or by reason of any of Lessee's Alterations and shall indemnify and hold
Lessor harmless from and against and shall reimburse Lessor for all costs,
expenses and liabilities, including reasonable attorneys' fees.  All Lessee's
Alterations as well as repairs to the Premises made pursuant to any provision
hereof shall be removed by Lessee or at the option of the Lessor become the
property of Lessor at the expiration of the Lease and title thereto and
possession thereof shall automatically vest in Lessor without the necessity of
Lessee executing further instrument particularly granting, conveying or
releasing the same and without necessity of any payment therefor by Lessor,
except if Lessor so elects all improvements by Lessee shall be removed by Lessee
at the termination of the Lease, without destruction of or non-repairable damage
to the Premises.

     R-82 Default.
          -------
     (a)  The occurrence of any one or more of the following events shall
constitute a default by Lessee hereunder.

                    If Lessee shall be adjudged bankrupt, or a decrees or order
                    approving, and properly filed, a petition or answer asking
                    for reorganization of Lessee under the Federal bankruptcy
                    laws as now or hereafter amended, or under the laws of any
                    State, shall be entered, and any such decree or judgement or
                    order shall not have been vacated or stayed or set aside
                    within sixty (60) days from the date of the entry or
                    granting thereof.

                    If Lessee shall file or admit the jurisdiction of a court
                    and the material allegations contained in any petition in
                    bankruptcy, or any petition pursuant or purporting to be
                    pursuant to the Federal bankruptcy laws as now or hereafter
                    amended, of Lessee shall institute any proceedings or shall
                    give its consent to the institution of any proceedings for
                    any relief of Lessee under any bankruptcy or insolvency laws
                    or laws relating to the relief of debtors, readjustments of
                    indebtedness, reorganization, arrangements, composition or
                    extensions.

                    If Lessee shall make any assignment for the benefit of
                    creditors or shall apply for or consent to the appointment
                    of a receiver for Lessee or any of the property of Lessee.

                    If a decree or order appointing a receiver of the property
                    of Lessee shall be made and such decree or order shall not
                    have been vacated, stayed or set aside within sixty (60)
                    days from the date of entry or granting thereof.

                    If Lessee shall vacate or abandon the Premises during the
                    term hereof.

                    If Lessee shall not pay all amounts which constitute monthly
                    rent hereunder (including but not limited to the payment of
                    taxes), when due as herein provided and such nonpayment
                    shall continue for a period of 5 days thereafter.

                                       4
<PAGE>

                    If Lessee shall make default in any of the other covenants
                    and agreements herein contained to be kept, observed and
                    performed by Lessee, including but not limited to the
                    certain Environmental Indemnity Agreement, and such default
                    shall continue for a period of 20 days after written notice
                    of such default; provided however, that Lessee shall have
                    such additional time as is reasonably required to cure such
                    default.

                    If Lessee shall default under the terms and provisions of
                    any other Lease Agreement which Lessee has with Lessor for
                    other properties owned by Lessor.

     (b)  Upon any default of Lessee hereunder, Lessor may, in addition to all
other rights and elections provided in the Lease and all other legal or
equitable remedies or damages provided by law, at its election, declare the term
of the Lease ended and, either with or without process of law, re-enter,
repossess and forfeiture of the rents to be paid and the covenants to be
performed by Lessee during the terms of the Lease. If default shall be made in
any covenant or agreement herein contained to be kept, observed and performed by
Lessee, other than the payment of all amounts which constitute rent as herein
provided, and if Lessee, prior to the expiration of a period of twenty (20) days
commences to eliminate the cause of such default and does so cure such default,
then Lessor shall not have the right to declare the said term ended by reason of
such default; provided, however, that the curing of any default in such manner
shall not be construed to limit or restrict the right of Lessor to declare the
said term ended and enforce all of its rights and remedies hereunder for any
other default not so cured.

     (c)  The foregoing provisions for the termination of the Lease for any
 default in any of its covenants, shall not operate to exclude or suspend any
 other remedy of Lessor for breach of any of said covenants or for the recovery
 of said rent or any advance of Lessor made thereon, and in the event of
 termination of the Lease as aforesaid, Lessee agrees to indemnify and save
 harmless Lessor from any loss, cost or expenses arising from such termination
 and reentry in pursuance thereof.

     R-83 Maintenance. Lessee shall pay all maintenance costs associated with
          -----------
its own interior improvements to the building.

     Lessor shall be responsible to the extent it deems necessary for exterior
landscaping and shall provide reasonable snowplowing services for the benefit of
the Lessee. Lessor will be responsible for all maintenance, operation and repair
expenses to roof, shell plumbing, exterior walls, windows, foundations,
sidewalks, HVAC (excepting for utility charges which are the responsibility of
Lessee), provided the same are not due to Lessee's, its agents, employees,
guest, licenses, and invitees, negligence, willful or wanton misconduct acts or
omissions.

     R-84 Place of Payment of Rent.  All rent payable to Lessor shall be paid by
          ------------------------
Lessee to Lessor at Lessor's address specified herein, or to such other person
and/or at such other address as Lessor may direct by notice to Lessee in such
coin or currency of the United States of America as at the time of payment shall
be legal tender for the payment of public or private debts. Except as
specifically provided herein, Rent shall be paid without notice or demand.

     R-85 Mechanic's Liens. Lessee shall not create or permit to be created or
          ----------------
to remain and shall discharge any lien, encumbrance or charge levied on account
of any imposition or any mechanic's, laborer's or material men's lien or
mortgage, deed or trust or otherwise which is not being contested in good faith
by Lessee by proper proceedings and which might or does constitute a lien,
encumbrance or charge upon the Premises, or any part thereof, or the income
therefrom and Lessee will not suffer any other matter or thing whereby the
estate, right, interest of Lessor in the Premises or any part thereof might be
impaired. If any mechanic's, laborer's or materialmen's lien shall at any time
be filed against the Premises or any part thereof, Lessee, within thirty (30)
days after notice of the filing thereof, shall cause the same to be discharged
of record or otherwise stayed by payment, deposit, bond, order of a court of
competent jurisdiction or otherwise. If Lessee shall fail to contest by proper
proceeding or cause such lien to be discharged within such time period, then, in
addition to any other right or remedy, Lessor may, but shall not be obligated to
procure the discharge of such her, by deposit or by bonding proceedings and in
such event Lessee shall immediately pay the amount of such cost or expense to
Lessor as Additional Rent, hereunder, which amount shall be refundable upon
completion and satisfaction of the lien proceedings.

                                       5
<PAGE>

     R-86  Surrender. Lessee shall and will, upon the expiration of this Lease,
           ---------
or upon any reentry by Lessor upon the Premises pursuant to the terms of this
Lease: (i) surrender and deliver up the Premises into the possession and use of
Lessor without delay, broom clean and in good order and condition and repair,
free and clear of all lettings and occupancy and free and clear of all liens,
charges and encumbrances, in the same condition as existed on the date hereof,
and, at the request of Lessor, shall remove all Lessee's Alterations, if any.

     R-87  Compliance with Laws.  Lessee, at its sole cost and expense, shall
           --------------------
promptly comply with all present and future statutes, codes, laws, acts,
ordinances, administrative and judicial orders, judgments, decrees, injunctions
and decisions, rules, resolutions, restrictions, regulations and requirements of
all federal, state, county, municipal and local governments, and all courts,
departments, commissions, boards, bureaus, agencies, authorities, officials and
offices thereof have or claiming jurisdiction overall or any part of the
property or the use, operation or occupancy thereof.

     R-88  Waiver of Liabilities. To the full extent permitted by law, Lessee
           ---------------------
hereby releases and waives all claims against Lessor and its agents and
employees for injury or damage for person, property or business sustained in or
about the Premises or the property by Lessee, its employees, agents, servants,
invitees, licensees or subtenants.

     R-89  Mutual Waiver of Subrogation Rights. Whenever (a) any loss, cost,
           -----------------------------------
damage, or expense resulting from fire, explosion, or any other casualty or
occurrence is incurred by either of the parties to this Lease in connection with
the Premises, and (b) such party is then covered in whole or in part by
insurance with respect to such loss, cost, damage or expense, then the party so
insured hereby releases the other party from any liability it may have on
account of such loss, cost, damage, or expense to the extent of such amount
recovered by reason of such insurance and waives any right of subrogation which
might otherwise exist in or accrue to any person on account thereof, provided
such release of liability and waiver of the right of subrogation shall not be
operative in any case where the effect thereof is to invalidate such insurance
coverage or increase the cost thereof.

     R-90  Late Charge. In the event any installment of Rent or Additional Rent
           -----------
is not paid on the due date thereof, Lessee shall pay to Lessor a late charge,
which shall be deemed to be Additional Rent hereunder, in an amount equal to
five percent (5%) of the amount of Rent or Additional Rent which was not timely
paid hereunder. This late charge shall be payable each and every calendar month
or part thereof thereafter until such Rent or Additional Rent is paid.

     R-91  Applicable Law and Construction. The laws of the State of Illinois
           -------------------------------
shall govern the validity, performance and enforcement of this Lease. The
invalidity or unenforceability of any provision of this Lease shall not affect
or impair any other provision. The headings of the several articles contained
herein are for convenience only and do not explain, define, limit, amplify, aid
in the interpretation, construction or meaning of the provisions of this Lease.

     R-92  Binding Effect of Lease. The covenants, agreements and obligations
           -----------------------
herein contained except as herein otherwise specifically provided, shall extend
to, bind and inure to the benefit of the Parties hereto and their respective
personal representatives, heirs, successors and assigns. Lessor, at any time and
from time to time, may make an assignment of its interest in this Lease, and, in
the event of such assignment and the assumption by the assignee of the covenants
and agreements to be performed by Lessor herein. Lessor and its successors and
assigns (other than the assignee of this Lease) shall be released from any and
all liability hereunder.

     R-93  Title. The title to the Premises is held in a land trust of which
           -----
High Hopes, Inc. is the beneficiary.

     R-94  Brokerage. The parties hereto represent and warrant to each other
           ---------
that they have not had any dealing with any real estate broker, salesman, agent,
finder or consultant in connection with the transaction contemplated hereby and
agree to indemnify and hold harmless the other against any claims for
commissions, fees, etc.

                                       6
<PAGE>

     R-95  Notices. Except as provided in R-7 above, any notice, request, demand
           -------
or consent required or permitted to be given under this Agreement shall be in
writing and shall be effective when delivered personally or when mailed, first
class, postage prepaid, certified or registered mail, return receipt requested,
as follows:

     If to Lessee:            Medichem Research, Inc.
                              12305 New Avenue
                              Lemont, IL 60546
                              Attention: John L. Flavin
                              Fax Number: 630/257-1505

     With a copy to:          James E. Tyrrell
                              Ross Tyrrell, Ltd.
                              111 West Washington Street
                              Suite 1120
                              Chicago, Illinois 60602

     If to Lessor:            High Hopes, Inc,
                              13420 King Road
                              Lemont, Illinois 60439
                              Attention: Deborah L. Roth, President

     With a copy to:          Robert D. Tuerk, Esq.
                              Pretzel & Stouffer, Chartered
                              One S. Wacker Drive, Ste. 2500
                              Chicago, Illinois 60606
                              Fax Number: 312/346-8242

Any party hereto may change its address by giving notice in accordance with this
paragraph stating its new address to each of the other parties hereto.
Commencing with the giving of such notice, such newly designated address shall
be said party's address for purposes of all notices or other communications
required or permitted to be given pursuant to this Agreement.

     R-96  Option to Renew. Provided the Lessee is not in default under the
           ---------------
Lease, the Lessee is granted the option of renewing this Lease for a term
commencing on July 1, 2000 and expiring on June 30, 2003, provided it gives the
Lessor notice in writing of the exercise of the option at least one hundred
eighty (180) days prior to the expiration of the Lease. If Lessee exercises such
option to renew then the Base Rental during the Renewal Period shall be Seven
Dollars and 50/100 ($7.50) a square foot per annum on 5000 square feet, payable
monthly in advance, plus taxes, insurance and all other expenses of Lessee
hereunder. The exercise of the option shall be irrevocable. All conditions and
covenants of the Lease shall remain in full force and effect during the extended
period, except that the monthly rent shall be the then agreed upon increased
rent for the Premises.

     R-97  Environmental Indemnification. The parties have executed an
           -----------------------------
Environmental Indemnity Agreement simultaneously with the Lease, which Agreement
is incorporated herein by reference.

                                       7
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have executed this Lease as of the
day and year first above written.

LESSOR:                                 LESSEE:

HIGH HOPES, INC., an Illinois           MEDICHEM RESEARCH, INC.
corporation, as beneficiary and
agent of First National Bank of
Joliet, as Trustee and Trust
Number 5175

By:______________________________       By:___________________________________
       Deborah L. Roth, not                  Michael L. Flavin, as President
    individually but as President

                                       8
<PAGE>

                               PERSONAL GUARANTY

     For value received Michael Flavin, individually, hereby guarantees payment
of rent and prompt and satisfactory performance of all obligations under the
terms of the Industrial Building Lease Agreement set forth above subject to the
following:

     During the term of the Lease, Guarantor will be responsible for 75% of the
     obligations under the Guaranty; and

If Medichem Research, Inc. (Lessee) defaults in the payment of any installment
of the monthly base rent, or in the payment of any other obligation or in the
performance of other obligations or covenant under the terms of the Lease,
Michael Flavin, individually, guarantees and shall pay the amount of such
installment and additional payment as above provided within ten (10) days after
receipt of written notice of default and demand for payment to Lessor.

     If Medichem Research, Inc, defaults in the performance of any additional
obligations under the Lease, Michael Flavin, individually shall pay to Lessor on
demand, all damages, costs, and expenses that Lessor is entitled to recover from
Medichem, as above provided, by reason of such default.

     This guarantee shall continue in force until all obligations of Medichem
Research, Inc. under the Lease have been satisfied or until Michael Flavin's
liability to Lessor under the lease has been completely discharged, whichever
first occurs.

     Michael Flavin, as guarantor, shall not be discharged from liability
hereunder as long as any claim by Lessor against Medichem Research, Inc, remains
outstanding.

     This guarantee shall be binding on the legal representatives, successors,
and assigns of the guarantor. Notice of acceptance of this guarantee is
expressly waived.

     IN WITNESS WHEREOF, Michael Flavin, as guarantor, has executed this
guarantee at Lemont, Illinois on the ____ day of________2000.



                              _______________________________________________
                              Michael Flavin

                                       9
<PAGE>

                       ENVIRONMENTAL INDEMNITY AGREEMENT

     THIS ENVIRONMENTAL INDEMNITY AGREEMENT ("Agreement") is dated this ___ day
of October, 1998, by and among MEDICHEM RESEARCH, INC., an Illinois corporation
(the "Company"), on the one hand and HIGH HOPES, INC. ("High Hopes") an Illinois
corporation, and STANDARD BANK & TRUST, as Trustee under Trust No. 5310
("Standard") (High Hopes and Standard are hereinafter collectively referred to
as the "Indemnities"), under the following circumstances:

                                   RECITALS:
                                   --------

     A.   Standard holds legal title to the real property and improvements
located in Lemont, Illinois, commonly known as 12301 New Avenue and 12305 New
Avenue and legally described on Exhibit A, attached hereto (the "Property");

     B.   High Hopes is the owner of 100% of the beneficial interest in the
land trust which hold the Property and holds the power of direction with respect
to such land trust;

     C.   The Company desires to enter into a new five (5) year Lease for
Suite J of 12305 New Avenue, Lemont, Illinois, upon such terms and conditions as
Standard, High Hopes and the Company may agree. Each such Agreement shall be
referred to as "the Lease" in this Agreement; and

     D.   High Hopes and Standard are willing to lease each Property to the
Company upon the terms set forth in the Lease, but as a condition to entering
into such Lease, require certain assurances and protections as set forth herein.

     NOW, THEREFORE, in order to induce the Indemnities to enter into the Lease,
and in consideration of the matters described in the foregoing Recitals, for the
sum of $10.00 and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

                    Recitals. The Recitals are incorporated herein by this
                    --------
                              reference.

                    Definitions.  For purposes of this Agreement:
                    -----------

                              "Hazardous Materials" means and includes those
                              substances, including without limitation, asbestos
                              or any substance containing asbestos and deemed
                              hazardous under any Hazardous Material Law
                              (defined below), the group of organic compounds
                              known as polychlorinated biphenyls, flammable
                              explosives, radioactive materials, chemicals known
                              to cause cancer or reproductive toxicity,
                              pollutants, effluents, contaminants, emissions or
                              related materials and any items included in the
                              definition of hazardous or toxic waste materials
                              or substances, under any Hazardous Material Law.

                              "Hazardous Material Laws" collectively means and
                              includes any present and future local, state and
                              federal law relating to the environment and
                              environmental conditions, including without
                              limitation, the Resource Conservation and Recovery
                              Act of 1976 ("RCRA"), 42 U.S.C. (S)6901 et seq.,
                                                                      ------
                              the Comprehensive Environmental Response,
                              Compensation and Liability Act of 1980
<PAGE>

                              ("CERCLA"), 42 U.S.C. (S)9601-9657, as amended by
                              the Superfund Amendments and Reauthorization Act
                              of 1986 ("SARA"), the Hazardous Materials
                              Transportation Act, 49 U.S.C. (S)6901, et seq.,
                                                                     ------
                              the Federal Water Pollution Control Act, 33 U.S.C
                              (S)1251 et seq., the Clean Air Act, 42 U.S.C. (S)
                              741 et seq., the Clean Water Act, 33 U.S.C. (S)
                              7401, et seq., the Toxic Substances Control Act,
                                    ------
                              15 U.S.C. (S)2601-2629, the Safe Drinking Water
                              Act, 42 U.S.C. (S)300f-300j et seq., and all the
                              regulations, orders and decrees now or hereafter
                              promulgated thereunder.

                    Indemnification; Reimbursement; Environment Studies.
                    ---------------------------------------------------

                              The Company hereby agrees and shall indemnify,
                              defend, and hold the Indemnities harmless from and
                              against (i) any loss, liability, damage, expense
                              or claim arising under any Hazardous Material Law;
                              and (ii) any other loss, liability, damage,
                              expense or claim which may be incurred by or
                              asserted against the Indemnities directly or
                              indirectly resulting from the presence of
                              Hazardous Materials on the Property, in each case
                              arising out of activities carried on by the
                              Company, its agents, employees, invitees,
                              affiliates on the Property from and after the date
                              of the initial Lease between the parties
                              ("Indemnity or Indemnities").

                              Any losses, liabilities, damages, injuries, costs,
                              expenses (including reasonable attorneys' fees and
                              expenses) and claims for which the Indemnities are
                              to be indemnified hereunder shall be reimbursable
                              to the Indemnities as incurred.

                              Within twenty (20) days following completion of
                              any actions imposed upon the Company under any
                              Hazardous Material Law, the Company shall obtain
                              and deliver to the Indemnities an environmental
                              report in form and substance acceptable to the
                              Indemnities from an environmental professional
                              acceptable to Indemnities, stating that all
                              required action has been taken, and that upon
                              completion of such action, the Property is, to the
                              knowledge of such professional, then in compliance
                              with the applicable Hazardous Material Laws.

                              This indemnity is only valid as to those acts,
                              omissions and other conduct or failure to act that
                              occurred while Company was in possession of the
                              property pursuant to the Renewal Lease.

                    Duration of Indemnity. The liability of the Company under
                    ---------------------
                    this agreement shall be limited to those Indemnities
                    occurring during the term of the prior Lease and the term of
                    this Lease and shall not be construed to impose liability on
                    the Company for damages

                                       2
<PAGE>

                    occurring after the date of termination of this Lease or to
                    impose liability on the Company for activities carried on,
                    or conditions which had occurred prior to commencement of
                    the Lease dated June 9, 1994, or the Lease dated February,
                    1995, and the Environmental Indemnity executed therewith.
                    Such claims made shall be valid against the Company if such
                    damage resulted from the Company's tenancy of the property.

                    Notice from the Company. The Company shall promptly after
                    -----------------------
                    obtaining knowledge thereof advise the Indemnities in
                    writing of (i) any governmental or regulatory actions
                    instituted or threatened in writing under any Hazardous
                    Material Law affecting the Property or any Indemnity
                    hereunder including, without limitation, any notice of
                    inspection, abatement or noncompliance, (ii) all claims made
                    or threatened in writing by any third party against the
                    Company or the Property relating to any Hazardous Material
                    or, a violation of a Hazardous Material Law, and (iii) the
                    Company's discovery of any occurrence or condition on the
                    Property or any real property adjoining or in the vicinity
                    of the Property which could subject the Company or the
                    Property to a claim under any Hazardous Material Law, or to
                    any restrictions on ownership, occupancy, transferability or
                    use of the Property under any Hazardous Material Law. The
                    Company shall deliver to the Indemnities any documentation
                    or records as the Indemnities may reasonably request and
                    which are susceptible of being obtained by the Company
                    without undue cost or expense and without the necessity for
                    initiating legal proceedings to obtain the same.

                    Claims.
                    ------

                              In the event the Indemnities desire to make a
                              claim against the Company under this Agreement,
                              the Indemnities shall give prompt notice to the
                              Company of the institution of any actions, suits
                              or proceedings and demands at any time instituted
                              against, made or threatened upon the indemnities
                              or Company, or any state of facts known to
                              Indemnities in connection with which the
                              Indemnities would claim Indemnification under this
                              Agreement. However, the failure of any Indemnities
                              to give notice as provided herein shall not
                              relieve the Company of its obligations under this
                              Agreement, except to the extent that the Company's
                              position has been materially adversely affected by
                              such failure.

                              The Company shall have the right, but not the
                              obligation, to assume the defense of any action
                              suit or proceeding for which there is a claim for
                              indemnification hereunder, provided that the
                              Company affirmatively assumes, in writing, the
                              obligation to pay the loss, cost, damage and
                              expenses arising from the claim of which defense
                              is assumed.

                                       3
<PAGE>

                              If the Company does not assume the defense of any
                              such action, suit or proceeding before the earlier
                              to occur of (i) the thirtieth (30th) day after
                              receipt of notice, or (ii) five (5) days or
                              shorter period of time, if necessary, before the
                              date an answer or similar response to an
                              initiation of judicial proceedings is due, or
                              (iii) five (5) days or any shorter period of time,
                              if necessary, before the date upon which remedial
                              or clean-up action must be taken pursuant to court
                              order or provision of any applicable law or
                              regulation, the Indemnities shall, upon further
                              notice to the Company, have the right to
                              undertake, at the expense of the Company, the
                              defense, compromise, or settlement of such claim
                              on behalf of or for their own account and/or risk
                              of the Company subject to the right of the Company
                              to assume the defense of such claim at any time
                              prior to settlement, compromise or final
                              determination thereof.

                              The exercise of the right of the Company to assume
                              the defense pursuant to section 6(c) above of such
                              claim, once the Indemnities have undertaken the
                              defense, compromise or settlement of such claim in
                              accordance herewith, shall not prejudice the
                              Indemnities.

                              Anything in this Section 6 to the contrary
                              notwithstanding, (i) if there is a reasonable
                              probability that such an action, suit or
                              proceeding may materially and adversely affect
                              Indemnities, Indemnifies shall have the right to
                              defend, at their own cost and expense, and to
                              compromise or settle such action, suit or
                              proceeding; provided however, that the Company
                              shall have given written consent for such
                              compromise or settlement, and (ii) the Company
                              shall not, without the written consent of the
                              Indemnities, which consent may not be unreasonably
                              withheld, settle or compromise any such action,
                              suit or proceeding or consent to the entry of any
                              judgment.

                              The Company shall remain fully liable for its
                              obligations of indemnity despite any action by the
                              Indemnities under the proceeding sentence with
                              respect to liquidated claims, if within thirty
                              (30) days the Company has not contested said claim
                              in writing, the Company will pay the full amount
                              thereof in cash within ten (10) days after the
                              expiration of such period.

                              Each party shall be responsible for its own
                              expenses in any arbitration or litigation between
                              the parties hereto and any expenses not
                              attributable to either party, such as the cost of
                              a third-party arbitrator (in the event that the
                              parties agree to arbitration), shall be shared
                              equally by the parties. Notwithstanding the
                              foregoing, in the event that the Indemnities shall
                              incur any expenses or costs as a result of the
                              Company's failure to fulfill or perform its
                              obligations under this Agreement, then the Company
                              shall be responsible for all such costs and

                                       4
<PAGE>

                              expenses, including attorney's fees, so incurred
                              by Indemnities, and shall indemnify and hold
                              harmless Indemnities from and against all such
                              costs and expenses.

                    Indemnities represent and warrant to the Company that they
                    have not caused any adverse environmental effects or
                    conditions to the subject property from the time they
                    acquired legal/equitable title to the property to the date
                    of the execution of the Renewal Lease. Furthermore,
                    Indemnities will indemnify Company to the extent that it is
                    shown by virtue of a court decision that the Indemnities
                    caused environmental hazards to occur to the subject
                    property while they were the legal and equitable owner.

                    Obligations Absolute; Waivers.
                    -----------------------------

     The obligations of the Company hereunder shall remain in full force without
regard to, and shall not be impaired by the following, any of which may be taken
in such manner, upon such terms and at such times as the Indemnities, in their
sole discretion, deem advisable without the consent of, or notice to, the
Company, nor shall any of the following give the Company any recourse or right
of action against the Indemnities: (i) any express or implied amendment,
modification, renewal, addition, supplement, extension or acceleration of or to
the lease; (ii) any exercise or non-exercise by the Indemnities of any right or
privilege under the Lease dated June 9, 1994 and the Renewal Lease; (iii) any
bankruptcy, insolvency, reorganization, composition, adjustment, dissolution,
liquidation or other like proceeding relating to the Company, or any affiliate
of the Company or any proceeding, whether or not the Company shall have had
notice or knowledge of any of the foregoing; or (iv) any assignment or other
transfer of the Renewal Lease, in whole or in part.  It is understood that any
of the foregoing do not diminish any rights the Company may have under the
Renewal Lease.

                    No Waiver.  The Company's obligations hereunder shall, in
                    ---------
                    no way be impaired, reduced or released by reason of the
                    Indemnities' omission or delay to exercise any right
                    described herein or in connection with any notice (except
                    for notices required of the Indemnities pursuant to this
                    Agreement), demand, warning or claim regarding violations of
                    any Hazardous Material Laws governing the Property.

                    Successors and Assigns.  Subject to the provisions of
                    ----------------------
                    paragraph 4, this Agreement and the Indemnities contained in
                    this Agreement shall be continuing, irrevocable and binding
                    on the Company and its successors and assigns, and this
                    Agreement shall be binding upon and shall inure to the
                    benefit of the Indemnities, and their respective successors
                    and assigns. The dissolution of the Company shall not affect
                    this Agreement or the Company's obligations hereunder.

                    Notices.  Any notices which any party may be required, or
                    -------
                    may desire, to give shall, unless otherwise specified, be in
                    writing and shall be (i) hand delivered, effective upon
                    receipt, (ii) sent by United States Express Mail or by
                    private overnight courier,

                                       5
<PAGE>

                    effective upon receipt, or (iii) served by certified mail,
                    postage prepaid, return receipt requested and addressed as
                    follows:

     In the case of the High Hopes and/or Standard, to:

          Debbie Roth, President
          High Hopes, Inc.
          13420 King Road
          Lemont, Illinois 60439

      with copies to:

          Robert D. Tuerk, Esq.
          Pretzel & Stouffer, Chtd.
          One S. Wacker Drive, Suite 2500
          Chicago, Illinois 60606

     In the case of the Company, to,

          John Flavin
          Medichem Research, Inc.
          12305 New Avenue
          Lemont, Illinois 60546

or such other address(es) or addressee(s) as the party to be served with notice
may have furnished to the other party in accordance with this paragraph.

                    Entire Agreement. This Agreement constitutes the entire
                    ----------------
                    Agreement between the parties with respect to the subject
                    matter hereof and supersedes all prior agreements and
                    understandings, both written and oral, between the parties
                    with respect to the subject matter contained in this
                    Agreement.

                    Amendment and Waiver. This Agreement may not be amended
                    --------------------
                    except by a writing signed by all parties. Observance of any
                    term of this Agreement may be waived only with the written
                    consent of the Indemnities.

                    Governing Law.  THIS AGREEMENT SHALL BE GOVERNED AND
                    -------------
                    CONSTRUCTED AS TO INTERPRETATION, ENFORCEMENT, VALIDITY,
                    CONSTRUCTION, EFFECT AND IN ALL OTHER RESPECTS BY THE LAW,
                    STATUTES AND DECISIONS OF THE STATE OF ILLINOIS.

                    Counterparts. This Agreement may be executed in any number
                    ------------
                    of counterparts, each of which shall be deemed an original,
                    and all of which taken together shall constitute one and the
                    same agreement.

     15(a).  Indemnities' Cooperation.  To the extent necessary, should any
             ------------------------
claim arise by anyone other than Indemnities, Indemnities will offer their full
cooperation with any defense asserted by the Company.

                                       6
<PAGE>

                    Severability.  All provisions contained in this Agreement
                    ------------
                    are severable and the invalidity or unenforceability of any
                    provision shall not affect or impair the validity or
                    enforceability of the remaining provisions of this
                    Agreement.

                    Headings. The descriptive headings of the paragraphs of this
                    --------
                    Agreement are inserted for convenience only and do not
                    constitute a part of this Agreement.

                    Execution by Land Trust. The parties shall endeavor to
                    -----------------------
                    obtain the signature of Standard Bank and Trust as Trustee
                    under Trust Agreement No. 5310 as soon as reasonably
                    practicable. Pending execution of this Agreement by such
                    Land Trust, the parties acknowledge and agree that execution
                    of this Agreement by the Company and by High Hopes, the
                    beneficiary of such Land Trust and holder of the power of
                    direction therefor, shall be sufficient to constitute this
                    Agreement as an enforceable contract against the Company and
                    High Hopes as beneficiary of such Land Trust.

     IN WITNESS WHEREOF, this Agreement has been executed as of the date first
above written.

                                   MEDICHEM RESEARCH, INC.
                                   an Illinois corporation ("Company")


                                   By: ______________________________________

                                   Title: ___________________________________



                                   FIRST NAtional BANK OF JOLIET, not
                                   individually but as Trustee u/t/a
                                   number 5310 ("Standard")


                                   By: ______________________________________

                                   Title: ___________________________________



                                   HIGH HOPES, INC.,
                                   an Illinois corporation ("High Hopes")


                                   By: ______________________________________

                                   Title: ___________________________________

                                       7
<PAGE>

This document prepared by:
-------------------------

Robert D. Tuerk, Esq.
Pretzel & Stouffer, Chtd.
One S. Wacker Drive, Suite 2500
Chicago, Illinois 60606

                                       8
<PAGE>

                           FIRST AMENDMENT TO LEASE
                           ------------------------

          THIS FIRST AMENDMENT TO LEASE (this "Amendment") is made and entered
as of the _____ day of April, 1999, by and between HIGH HOPES, INC. as Agent for
First National Bank of Joliet, Trust No. 5175, as successor in interest to
Standard Bank and Trust, Trust No. #5310, ("Lessor") and MEDICHEM RESEARCH,
INC., an Illinois corporation ("Lessee").

                                   RECITALS

          A.   HIGH HOPES, INC., as agent for Standard Bank and Trust, Trust No.
#5310 ("Roth's") and Lessee entered into that certain Industrial Building Lease
dated as of October, 1998 (the "Lease"), pursuant to which Lessee agreed to
lease Suite J of the Building commonly known as 12305 New Avenue, Lemont,
Illinois.

          B.   On or about December 11, 1998, the prior owner, Roth's assigned
its interest in the Property on which the Leased Premises is located to HIGH
HOPES, INC., as agent for Standard Bank and Trust, Trust No. #5310, and
thereafter title to the underlying Property was transferred to First National
Bank of Joliet, Trust No. 5175.

          C.   Lessor and Lessee desire to amend the Lease as set forth herein.

                                   AGREEMENT

          NOW THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Lessor and Lessee amend the Lease
as follows:

          1.   Defined Terms.  Capitalized terms not otherwise defined in this
               -------------
Amendment shall have the meaning set forth in the Lease.

          2.   Lessor.  The parties agree that the term "Lessor" under the Lease
               ------
shall mean: HIGH HOPES, INC. as Agent for First National Bank of Joliet, Trust
No. 5175

          3.   Except for the changes as herein provided, all terms and
provisions set forth in the Lease shall remain in full force and effect during
the Lease Term.

                                       9
<PAGE>

          IN WITNESS WHEREOF, Lessor and Lessee have caused this Amendment to be
executed and delivered as of the date first above written.

                                   Lessor:
                                   HIGH HOPES, INC, as Agent for First National
                                   Bank of Joliet, Trust No. 5175,

                                   By: ____________________________
                                         Deborah Roth, President

                                   Lessee:
                                   MEDICHEM RESEARCH, INC.

                                   By:_____________________________

                                   Title:_____________________________

                                       10
<PAGE>

                           FIRST AMENDMENT TO LEASE
                           ------------------------

          THIS FIRST AMENDMENT TO LEASE (this "Amendment") is made and entered
as of the _____ day of April, 1999, by and between HIGH HOPES, INC. as Agent for
First National Bank of Joliet, Trust No. 5175, as successor in interest to
Standard Bank and Trust, Trust No. #5310, ("Lessor") and MEDICHEM RESEARCH,
INC., an Illinois corporation ("Lessee").

                                   RECITALS

          A.   HIGH HOPES, INC., as agent for Standard Bank and Trust, Trust No.
#5310 ("Roth's") and Lessee entered into that certain Industrial Building Lease
dated as of October, 1998 (the "Lease"), pursuant to which Lessee agreed to
lease Suite J of the Building commonly known as 12305 New Avenue, Lemont,
Illinois.

          B.   On or about December 11, 1998, the prior owner, Roth's assigned
its interest in the Property on which the Leased Premises is located to HIGH
HOPES, INC., as agent for Standard Bank and Trust, Trust No. #5310, and
thereafter title to the underlying Property was transferred to First National
Bank of Joliet, Trust No. 5175.

          C.   Lessor and Lessee desire to amend the Lease as set forth herein.

                                   AGREEMENT

          NOW THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Lessor and Lessee amend the Lease
as follows:

          1.   Defined Terms.  Capitalized terms not otherwise defined in this
               -------------
Amendment shall have the meaning set forth in the Lease.

          2.   Lessor.  The parties agree that the term "Lessor" under the Lease
               ------
shall mean: HIGH HOPES, INC. as Agent for First National Bank of Joliet, Trust
No. 5175.

          3.   Except for the changes as herein provided, all terms and
provisions set forth in the Lease shall remain in full force and effect during
the Lease Term.

                                       11
<PAGE>

          IN WITNESS WHEREOF, Lessor and Lessee have caused this Amendment to be
executed and delivered as of the date first above written.

                                   Lessor:
                                   HIGH HOPES, INC, as Agent for First National
                                   Bank of Joliet, Trust No. 5175,

                                   By:____________________________
                                        Deborah Roth, President

                                   Lessee:
                                   MEDICHEM RESEARCH, INC.

                                   By:_____________________________

                                   Title:_____________________________

                                       12
<PAGE>

                           FIRST AMENDMENT TO LEASE
                           ------------------------

          THIS FIRST AMENDMENT TO LEASE (this "Amendment") is made and entered
as of the _____ day of April, 1999, by and between HIGH HOPES, INC. as Agent for
First National Bank of Joliet, Trust No. 5175, as successor in interest to
ROTH'S RELIABLE CONSTRUCTION CO., INC., as agent for Standard Bank and Trust,
Trust No. #5310, ("Lessor") and MEDICHEM RESEARCH, INC., an Illinois corporation
("Lessee").

                                   RECITALS

          A.  ROTH'S RELIABLE CONSTRUCTION CO., INC., as agent for Standard Bank
and Trust, Trust No. #5310 ("Roth's") and Lessee entered into that certain
Industrial Building Lease dated as of September, 1996 (the "Lease"), pursuant to
which Lessee agreed to lease Suites K, L and O of the Building commonly known as
12305 New Avenue, Lemont, Illinois.

          B.  On or about December 11, 1998, Roth's assigned its interest in the
Lease to HIGH HOPES, INC., as agent for Standard Bank and Trust, Trust No.
#5310, and thereafter title to the underlying property was transferred to First
National Bank of Joliet, Trust No. 5175.

          C.  Lessor and Lessee desire to amend the Lease as set forth herein.

                                   AGREEMENT

          NOW THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Lessor and Lessee amend the Lease
as follows:

          1.  Defined Terms.  Capitalized terms not otherwise defined in this
              -------------
Amendment shall have the meaning set forth in the Lease.

          2.  Lessor.  The parties agree that the term "Lessor" under the Lease
              ------
shall mean: HIGH HOPES, INC. as Agent for First National Bank of Joliet, Trust
No. 5175

          3.  Except for the changes as herein provided, all terms and
provisions set forth in the Lease shall remain in full force and effect during
the Lease Term.

                                       13
<PAGE>

          IN WITNESS WHEREOF, Lessor and Lessee have caused this Amendment to be
executed and delivered as of the date first above written.

                               Lessor:
                               HIGH HOPES, INC, as Agent for First National Bank
                               of Joliet, Trust No. 5175,

                               By:____________________________
                                    Deborah Roth, President

                               Lessee:
                               MEDICHEM RESEARCH, INC.

                               By:____________________________

                               Title:_________________________

                                       14
<PAGE>

                           FIRST AMENDMENT TO LEASE
                           ------------------------

          THIS FIRST AMENDMENT TO LEASE (this "Amendment") is made and entered
as of the _____ day of April, 1999, by and between HIGH HOPES, INC. as Agent for
First National Bank of Joliet, Trust No. 5175, as successor in interest to
ROTH'S RELIABLE CONSTRUCTION CO., INC., as agent for Standard Bank and Trust,
Trust No. #5310, ("Lessor") and MEDICHEM RESEARCH, INC., an Illinois corporation
("Lessee").

                                   RECITALS

          A.  ROTH'S RELIABLE CONSTRUCTION CO., INC., as agent for Standard Bank
and Trust, Trust No. #5310 ("Roth's") and Lessee entered into that certain
Industrial Building Lease dated as of September, 1996 (the "Lease"), pursuant to
which Lessee agreed to lease Suites K, L and O of the Building commonly known as
12305 New Avenue, Lemont, Illinois.

          B.  On or about December 11, 1998, Roth's assigned its interest in the
Lease to HIGH HOPES, INC., as agent for Standard Bank and Trust, Trust No.
#5310, and thereafter title to the underlying property was transferred to First
National Bank of Joliet, Trust No. 5175.

          C.  Lessor and Lessee desire to amend the Lease as set forth herein.

                                   AGREEMENT

          NOW THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Lessor and Lessee amend the Lease
as follows:

          1.  Defined Terms.  Capitalized terms not otherwise defined in this
              -------------
Amendment shall have the meaning set forth in the Lease.

          2.  Lessor.  The parties agree that the term "Lessor" under the Lease
              ------
shall mean: HIGH HOPES, INC. as Agent for First National Bank of Joliet, Trust
No. 5175

          3.  Except for the changes as herein provided, all terms and
provisions set forth in the Lease shall remain in full force and effect during
the Lease Term.

                                       15
<PAGE>

          IN WITNESS WHEREOF, Lessor and Lessee have caused this Amendment to be
executed and delivered as of the date first above written.

                               Lessor:
                               HIGH HOPES, INC, as Agent for First National Bank
                               of Joliet, Trust No. 5175,

                               By:____________________________
                                    Deborah Roth, President

                               Lessee:
                               MEDICHEM RESEARCH, INC.

                               By:_____________________________

                               Title:__________________________

                                       16
<PAGE>

                           FIRST AMENDMENT TO LEASE
                           ------------------------

          THIS FIRST AMENDMENT TO LEASE (this "Amendment") is made and entered
as of the _____ day of April, 1999, by and between HIGH HOPES, INC. as Agent for
First National Bank of Joliet, Trust No. 5175, as successor in interest to
ROTH'S RELIABLE CONSTRUCTION CO., INC., as agent for Standard Bank and Trust,
Trust No. #5310, ("Lessor") and MEDICHEM RESEARCH, INC., an Illinois corporation
("Lessee").

                                   RECITALS

          A.  ROTH'S RELIABLE CONSTRUCTION CO., INC., as agent for Standard Bank
and Trust, Trust No. #5310 ("Roth's") and Lessee entered into that certain
Industrial Building Lease dated as of September, 1996 (the "Lease"), pursuant to
which Lessee agreed to lease Suites A, B and C of the Building commonly known as
12305 New Avenue, Lemont, Illinois.

          B.  On or about December 11, 1998, Roth's assigned its interest in the
Lease to HIGH HOPES, INC., as agent for Standard Bank and Trust, Trust No.
#5310, and thereafter title to the underlying property was transferred to First
National Bank of Joliet, Trust No. 5175.

          C.  Lessor and Lessee desire to amend the Lease as set forth herein.

                                   AGREEMENT

          NOW THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Lessor and Lessee amend the Lease
as follows:

          1.  Defined Terms.  Capitalized terms not otherwise defined in this
              -------------
Amendment shall have the meaning set forth in the Lease.

          2.  Lessor.  The parties agree that the term "Lessor" under the Lease
              ------
shall mean: HIGH HOPES, INC. as Agent for First National Bank of Joliet, Trust
No. 5175

          3.  Except for the changes as herein provided, all terms and
provisions set forth in the Lease shall remain in full force and effect during
the Lease Term.

                                       17
<PAGE>

          IN WITNESS WHEREOF, Lessor and Lessee have caused this Amendment to be
executed and delivered as of the date first above written.

                               Lessor:
                               HIGH HOPES, INC, as Agent for First National Bank
                               of Joliet, Trust No. 5175,

                               By:____________________________
                                    Deborah Roth, President

                               Lessee:
                               MEDICHEM RESEARCH, INC.

                               By:_____________________________

                               Title:__________________________

                                       18
<PAGE>

                           FIRST AMENDMENT TO LEASE
                           ------------------------

          THIS FIRST AMENDMENT TO LEASE (this "Amendment") is made and entered
as of the _____ day of April, 1999, by and between HIGH HOPES, INC. as Agent for
First National Bank of Joliet, Trust No. 5175, as successor in interest to
ROTH'S RELIABLE CONSTRUCTION CO., INC., as agent for Standard Bank and Trust,
Trust No. #5310, ("Lessor") and MEDICHEM RESEARCH, INC., an Illinois corporation
("Lessee").

                                   RECITALS

          A.  ROTH'S RELIABLE CONSTRUCTION CO., INC., as agent for Standard Bank
and Trust, Trust No. #5310 ("Roth's") and Lessee entered into that certain
Industrial Building Lease dated as of September, 1996 (the "Lease"), pursuant to
which Lessee agreed to lease Suites A, B and C of the Building commonly known as
12305 New Avenue, Lemont, Illinois.

          B.  On or about December 11, 1998, Roth's assigned its interest in the
Lease to HIGH HOPES, INC., as agent for Standard Bank and Trust, Trust No.
#5310, and thereafter title to the underlying Property was transferred to First
National Bank of Joliet, Trust No. 5175.

          C.  Lessor and Lessee desire to amend the Lease as set forth herein.

                                   AGREEMENT

          NOW THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Lessor and Lessee amend the Lease
as follows:

          1.  Defined Terms.  Capitalized terms not otherwise defined in this
              -------------
Amendment shall have the meaning set forth in the Lease.

          2.  Lessor.  The parties agree that the term "Lessor" under the Lease
              ------
shall mean: HIGH HOPES, INC. as Agent for First National Bank of Joliet, Trust
No. 5175

          3.  Except for the changes as herein provided, all terms and
provisions set forth in the Lease shall remain in full force and effect during
the Lease Term.

                                       19
<PAGE>

          IN WITNESS WHEREOF, Lessor and Lessee have caused this Amendment to be
executed and delivered as of the date first above written.

                               Lessor:
                               HIGH HOPES, INC, as Agent for First National Bank
                               of Joliet, Trust No.5175,

                               By:____________________________
                                    Deborah Roth, President

                               Lessee:
                               MEDICHEM RESEARCH, INC.

                               By:_____________________________

                               Title:__________________________

                                       20
<PAGE>

                           FIRST AMENDMENT TO LEASE
                           ------------------------

          THIS FIRST AMENDMENT TO LEASE (this "Amendment") is made and entered
as of the _____ day of April, 1999, by and between HIGH HOPES, INC. as Agent for
First National Bank of Joliet, Trust No. 5175, as successor in interest to
ROTH'S RELIABLE CONSTRUCTION CO., INC., as agent for Standard Bank and Trust,
Trust No. #5310, ("Lessor") and MEDICHEM RESEARCH, INC., an Illinois corporation
("Lessee").

                                   RECITALS

          A.  ROTH'S RELIABLE CONSTRUCTION CO., INC., as agent for Standard Bank
and Trust, Trust No. #5310 ("Roth's") and Lessee entered into that certain
Industrial Building Lease dated as of September, 1996 (the "Lease"), pursuant to
which Lessee agreed to lease Suites G, H and I of the Building commonly known as
12305 New Avenue, Lemont, Illinois.

          B.  On or about December 11, 1998, Roth's assigned its interest in the
Lease to HIGH HOPES, INC., as agent for Standard Bank and Trust, Trust No.
#5310, and thereafter title to the underlying Property was transferred to First
National Bank of Joliet, Trust No. 5175.

          C.  Lessor and Lessee desire to amend the Lease as set forth herein.

                                   AGREEMENT

          NOW THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Lessor and Lessee amend the Lease
as follows:

          1.  Defined Terms.  Capitalized terms not otherwise defined in this
              -------------
Amendment shall have the meaning set forth in the Lease.

          2.  Lessor.  The parties agree that the term "Lessor" under the Lease
              ------
shall mean:  HIGH HOPES, INC. as Agent for First National Bank of Joliet, Trust
No. 5175

          3.  Except for the changes as herein provided, all terms and
provisions set forth in the Lease shall remain in full force and effect during
the Lease Term.

                                       21
<PAGE>

          IN WITNESS WHEREOF, Lessor and Lessee have caused this Amendment to be
executed and delivered as of the date first above written.

                               Lessor:
                               HIGH HOPES, INC, as Agent for First National Bank
                               of Joliet, Trust No. 5175,

                               By:____________________________
                                    Deborah Roth, President

                               Lessee:
                               MEDICHEM RESEARCH, INC.

                               By:_____________________________

                               Title:__________________________

                                       22
<PAGE>

                           FIRST AMENDMENT TO LEASE
                           ------------------------

          THIS FIRST AMENDMENT TO LEASE (this "Amendment") is made and entered
as of the _____ day of April, 1999, by and between HIGH HOPES, INC. as Agent for
First National Bank of Joliet, Trust No. 5175, as successor in interest to
ROTH'S RELIABLE CONSTRUCTION CO., INC., as agent for Standard Bank and Trust,
Trust No. #5310, ("Lessor") and MEDICHEM RESEARCH, INC., an Illinois corporation
("Lessee").

                                   RECITALS

          A.  ROTH'S RELIABLE CONSTRUCTION CO., INC., as agent for Standard Bank
and Trust, Trust No. #5310 ("Roth's") and Lessee entered into that certain
Industrial Building Lease dated as of September, 1996 (the "Lease"), pursuant to
which Lessee agreed to lease Suites G, H and I of the Building commonly known as
12305 New Avenue, Lemont, Illinois.

          B.  On or about December 11, 1998, Roth's assigned its interest in the
Lease to HIGH HOPES, INC., as agent for Standard Bank and Trust, Trust No.
#5310, and thereafter title to the underlying property was transferred to First
National Bank of Joliet, Trust No. 5175.

          C.  Lessor and Lessee desire to amend the Lease as set forth herein.

                                   AGREEMENT

          NOW THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Lessor and Lessee amend the Lease
as follows:

          1.  Defined Terms.  Capitalized terms not otherwise defined in this
              -------------
Amendment shall have the meaning set forth in the Lease.

          2.  Lessor.  The parties agree that the term "Lessor" under the Lease
              ------
shall mean: HIGH HOPES, INC. as Agent for First National Bank of Joliet, Trust
No. 5175

          3.  Except for the changes as herein provided, all terms and
provisions set forth in the Lease shall remain in full force and effect during
the Lease Term.

                                       23
<PAGE>

          IN WITNESS WHEREOF, Lessor and Lessee have caused this Amendment to be
executed and delivered as of the date first above written.

                               Lessor:
                               HIGH HOPES, INC, as Agent for First National Bank
                               of Joliet, Trust No. 5175,

                               By:____________________________
                                    Deborah Roth, President

                               Lessee:
                               MEDICHEM RESEARCH, INC.

                               By:_____________________________

                               Title:__________________________

                                       24