Document:

EXHIBIT 10.09
                                      LEASE

         THIS LEASE, made and entered into this 10th day of June 1997, by and
between JORANDCOR, INC., a Minnesota corporation (hereinafter referred to as
"Landlord"), and CHRONIMED, INC., a Minnesota corporation (hereinafter referred
to as "Tenant");

         WITNESETH:

         1. LEASED PREMISES. In consideration of the rents, terms, provisions
and covenants of this Lease, Landlord hereby leases, lets and demises to Tenant
that portion of the following described premises outlined in red on Exhibit A
attached hereto, and designated "leased premises" (hereinafter referred to as
the "Leased Premises"), and containing 18,040 square feet, situated in the
building located at 6214-6222 Bury Drive, including the nonexclusive right to
use the common areas identified on Exhibit A.

         2. TERM. Subject to and upon the conditions set forth below, the term
of this Lease shall commence on September 1, 1997 ("Commencement Date"), and
shall terminate on August 31, 2002.

         3. RENT. Landlord reserves and Tenant covenants to pay the Landlord,
without demand at its offices at 6250 Bury Drive, or at such other address as
the Landlord may from time to time designate in writing, in advance, rent as
follows:

         (a)      From September 1, 1997 to August 31, 1999, Tenant shall pay
                  base rent for the Leased Premises of $6.76 per square foot
                  ($10,162.53 per month); and

         (b)      From September 1, 1999 to August 31, 2000, Tenant shall pay
                  base rent for the Leased Premises of $7.00 per square foot
                  ($10,523.33 per month); and

         (c)      From September 1, 2000 to August 31, 2001, Tenant shall pay
                  base rent for the Leased Premises of $7.15 per square foot
                  ($10,748.83 per month); and

         (d)      From September 1, 2001 to August 31, 2002, Tenant shall pay
                  base rent for the Leased Premises of $7.30 per square foot
                  ($10,974.33 per month).

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         The total base rent for the five year lease term will be $630,858.60.

         The base rent includes the payment on Landlord's Work based on an
amortization schedule of $58,926.94 over five years at 9.5% interest
("Amortization Schedule") for past work completed on the Leased Premises.

         4. ADDITIONAL RENT. As additional rental for the entire term of this
Lease, Tenant agrees to pay to the Landlord its pro-rata share of the operating
expenses of the building, as herein defined. If this Lease commences or
terminates on a day other than the first or last day of a calendar year, the
amount of additional rent payable by Tenant applicable to the year in which such
commencement or termination occurs shall be pro-rated in accordance with the
number of days during such year this Lease was in effect. Landlord shall invoice
Tenant for estimated operating costs for each calendar year at the beginning of
such calendar year, and Tenant agrees to prepay monthly, due at the same time as
and together with the Base Rent above provided, one-twelfth of such estimated
amount. Within a reasonable time after the end of each calendar year, Landlord
will provide Tenant with an accounting showing the operating expenses for such
year and Tenant's share thereof. Tenant shall have the right, at its sole
expense and at a reasonable time convenient to Landlord, no more frequently than
once each year, to audit Landlord's books relevant to the additional rent due
hereunder. In the event that the estimated amount paid for such year exceeds the
amount due for such year based on such accounting, Landlord agrees to return
such amount to the Tenant, together with said accounting. In the event that the
estimate is less than the operating expenses for such calendar year, Tenant
agrees to reimburse Landlord for such amount within thirty (30) days of receipt
of the above-referenced accounting.

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         The term "operating expenses" as used in this paragraph includes all
expenses incurred with respect to the ownership, repair, maintenance and
operation of the building of which the Leased Premises are a part, and
underlying land and other improvements thereon excluding repair and maintenance
of sewer and water to the building, but including, without limitation, snow
removal, reasonable internal management costs, fees, costs of cleaning exterior
of building and grounds, the cost of any common utilities, costs of maintaining
and repairing the building and all fixtures therein, all insurance premiums
provided for in Paragraph 12(a) hereof, and all real property taxes and
installments of special assessments which accrue against the building of which
the Leased Premises are a part during the term of this Lease and all other costs
of any nature which for federal income tax purposes may be expensed rather than
capitalized. Notwithstanding the foregoing, whether "capitalized" or "expenses",
operating expenses shall also include the yearly amortization of capital costs
incurred by the Landlord for improvements or structural repairs to the building
required to comply with any change in the laws, rules or regulations of any
governmental authority having jurisdiction. In addition, if any increase in the
fire and extended coverage insurance premiums paid by Landlord for the building
in which Tenant occupies space is caused by Tenant's use and occupancy of the
Leased Premises, or if Tenant vacates the Leased Premises and causes an increase
in such premiums, then Tenant shall pay as additional rent the amount of such
increase. Except as provided above, the term "operating expenses" does not
include any capital improvement to the building, outside management fees, any
expenses incurred in leasing to or procuring tenants for the building, or any
costs of renovating space for new tenants. For purposes of this paragraph, the
building in which the Leased Premises are a part is 50,200 square feet, and
Tenant's pro-rata share shall be 35.94%.

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         The operating costs for the Lease Premises have been estimated at $XXX
per square foot. True operating expenses will be calculated pursuant to the
terms of this Section.

         5. LATE PENALTY AND WAIVER OF SETOFF. Tenant waives and disclaims any
present or future right to apply any payment or part payment of rent, including
additional rent, or to set-off or counterclaim in any action for rent, including
additional rent, against any obligation of Landlord, however incurred, and
agrees that it will not claim or assert such right, set-off or counterclaim.
Other remedies for non-payment of rent notwithstanding, if the monthly rental
payment, including both Base Rent and additional rent, is not received by
Landlord on or before the tenth (10th) day of the month for which such rent is
due, or if any other payment due Landlord by Tenant is not received by Landlord
on or before ten (10) days after the due date thereof, a service charge of five
percent (5%) of such past due amount shall become due and payable in addition to
and together with such amounts owed under this Lease. In addition, interest at
the rate of twelve percent (12%) per annum shall be added to all amounts which
are over thirty (30) days past due and shall be due together therewith.

         6. USE OF PREMISES.

         (a)      The Leased Premises shall be used and occupied by Tenant for
                  the purposes of distribution of pharmacy and related products
                  and to manufacture and sell products and services to the
                  medical industry, and for no other purposes whatsoever without
                  the written consent of Landlord. Such use and occupancy shall
                  be in compliance with all applicable laws, ordinances and
                  governmental regulations. The Leased Premises shall not be
                  used in such a manner that, in accordance with any requirement
                  of law or of any public authority, the Landlord shall be
                  required to make any additions or alterations to or in the
                  building.

         (b)      Tenant shall promptly comply with all laws, ordinances and
                  regulations affecting the Leased Premises and promulgated by
                  duly constituted

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                  governmental authorities affecting the cleanliness, safety,
                  use and occupation of the Leased Premises.

         (c)      Tenant shall promptly comply with and use the Leased Premises
                  and the common areas serving or within the building, including
                  parking facilities, in accordance with such rules and
                  regulations as may from time to time be made by the Landlord
                  for the general safety, comfort and convenience of the
                  Landlord, the occupants and tenants of the building, and
                  Tenant agrees to cause its customers, employees and invitees
                  to abide by such rules and regulations.

         (d)      Tenant shall not perform any acts or carry on any practices
                  which may injure the improvements on the property, and shall
                  keep the property in clean, safe, sanitary and first class
                  condition, and clean and free from rubbish and dirt at all
                  times, and shall store all trash and garbage in the agreed
                  upon designated common area. In addition, Tenant agrees to
                  occupy the Leased Premises, conduct its business and control
                  its agents, employees, invitees and visitors so as not to
                  create any nuisance or otherwise interfere with, annoy or
                  disturb any other tenant in its normal business operations.

         7. UTILITIES. Tenant agrees to procure and promptly pay all bills for
electricity, gas, heat, fuel oil, and any and all other utilities used in the
Leased Premises during the term of this Lease, except water, which shall be
billed to Tenant as a portion of the operating expenses. Landlord agrees to use
its best efforts to restore any interrupted utility service, but shall not be
responsible or liable for any interruption in the supply of any utilities to the
Leased Premises beyond Landlord's reasonable control.

         8. REPAIRS AND MAINTENANCE.

         (a)      Landlord shall maintain and keep in good order and repair only
                  the exterior portions of the building of which the Leased
                  Premises are a part (excluding all windows, window glass,
                  plate glass and doors serving or allowing access solely to any
                  leased portion of the building), the common areas of the
                  building and fixtures and equipment located therein and the
                  parking areas and other common areas serving the building.
                  Tenant agrees to immediately give written notice to Landlord
                  of the need for repairs of which Tenant has knowledge, for
                  which Landlord may be responsible under this paragraph.
                  Landlord agrees to make such repairs within a reasonable time
                  after receiving such notice. Landlord shall not be liable to
                  Tenant except as expressly provided in this Lease for any
                  damage or inconvenience, and

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                  Tenant shall not be entitled to any abatement or reduction of
                  rent by reason of any repairs made by Landlord under this
                  Lease. In addition, Landlord shall have no responsibility for
                  the maintenance of any fixtures or other improvements
                  installed or made by or at the request of Tenant. In addition,
                  Tenant shall be liable for the cost of any repairs required by
                  reason of the negligence or misuse of Tenant, its agents,
                  employees and invitees which are not covered by the fire and
                  extended coverage insurance maintained by Landlord pursuant to
                  this Lease.

         (b)      Except as provided in Subparagraph (a) above, Tenant shall, at
                  its own cost and expense, maintain the Leased Premises
                  including doors and windows serving or allowing access solely
                  to such Leased Premises and improvements and all equipment and
                  fixtures in or on the Leased Premises in good repair and
                  condition, including all necessary replacements and replace
                  all glass which is broken by Tenant with glass of comparable
                  quality. Tenant shall not allow any damage to be committed on
                  any portion of the Leased Premises, and at termination of this
                  Lease, by lapse of time or otherwise, Tenant shall deliver the
                  Leased Premises to Landlord in as good a condition as existed
                  at the commencement or completion date of this Lease, ordinary
                  wear and tear excepted. The cost and expense of any repairs
                  necessary to restore the condition of the Leased Premises
                  shall be borne by Tenant, and if Landlord undertakes to
                  restore the Leased Premises, it shall have a right of
                  reimbursement against Tenant. Should Tenant neglect to keep
                  and maintain the Leased Premises as required herein, then
                  Landlord shall have the right, but not the obligation, to have
                  the work done and to charge the cost thereof to Tenant as
                  additional rent, which shall become payable by Tenant with the
                  payment of the rent next due hereunder. All materials and
                  workmanship in such maintenance or replacement shall be of
                  comparable quality to the initial materials and workmanship
                  and shall be compatible with the building and the Leased
                  Premises.

         9. INSTALLATION AND ALTERATIONS.

         (a)      Tenant shall have the right to install its own trade fixtures
                  and equipment, which shall at all times remain its property,
                  and, on condition that it is not in default hereunder, shall
                  have the right to remove the same immediately upon the
                  expiration or earlier termination of this Lease, provided that
                  it repairs any damage occasioned by the removal thereof.

         (b)      Tenant shall not make any repairs, alterations or additions to
                  the Leased Premises, including alterations prior to the
                  commencement of this Lease, or make any contracts therefor,
                  without first procuring Landlord's written consent, which the
                  Landlord agrees not to unreasonably withhold, and delivering
                  to Landlord any plans and specifications and copies of
                  proposed

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                  contracts and necessary permits, including the alterations
                  which Tenant shall, at Tenant's expense, cause to be performed
                  on the Leased Premises more fully described as "Tenant's
                  Work," if any, in Exhibit B attached hereto. Notwithstanding
                  anything to the contrary, Tenant may make alterations or
                  repairs to the Leased Premises if said alterations or repairs
                  cost less than Five Thousand and No/100 Dollars ($5,000.00);
                  and if prior to said alteration or repair, Tenant notifies
                  Landlord in writing the identity (including names and
                  addresses) of all contractors, subcontractors and/or material
                  suppliers providing labor and/or materials to the Leased
                  Premises. Prior to Tenant's commencement of any repairs,
                  alterations or additions to the Leased Premises, including
                  Tenant's Work described in Exhibit B, Tenant shall furnish
                  such indemnification against liens, costs, damages and
                  expenses as may be required by the Landlord including, without
                  limitation, a payment or performance bond. All alterations,
                  additions, improvements and fixtures, other than trade
                  fixtures, which may be made or installed by either of the
                  parties hereto upon the Leased Premises, and which are in any
                  manner attached to the floors, walls or ceilings at the
                  termination of this Lease shall become the property of
                  Landlord and shall remain upon and be surrendered with the
                  Leased Premises as a part thereof, without damage or injury
                  unless Landlord requests that such alterations or improvements
                  be removed, in which event the same shall be removed by the
                  Tenant at the expiration of the term of this Lease at its own
                  expense, and it shall be obligated to repair any damages
                  occasioned thereby. Tenant shall not place any signs on the
                  exterior of the Leased Premises or the building of which the
                  Leased Premises are a part without the Landlord's written
                  consent, which Landlord agrees not to unreasonably withhold.

         (c)      In the event that the alteration or improvement of the Leased
                  Premises by Tenant results in any increase in the assessed
                  value of the building for real estate tax purposes, and such
                  amount can be ascertained, the Tenant shall pay the increase
                  in real estate taxes resulting therefrom as and together with
                  additional rent due hereunder.

         (d)      Tenant shall pay when due, and indemnify, defend and hold
                  Landlord harmless from, all claims for labor or materials
                  furnished or alleged to have been furnished to Tenant for use
                  in the Leased Premises, which claims are or may be secured by
                  any lien against the Leased Premises, or any interest therein.
                  Tenant may, at its sole cost and expense, contest a mechanics
                  lien; provided, however, that during such contest the Tenant
                  shall, at the request of Landlord, provide security
                  satisfactory to the Landlord, including but not limited to
                  satisfaction of the requirements of Minn. Stat.ss.514.10. If
                  at any time payment of the mechanics lien or any other
                  obligation becomes necessary to prevent the foreclosure of the
                  Leased Premises, the Tenant shall pay the same in sufficient
                  time to prevent such foreclosure.

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         10. INDEMNITY.

         (a)      Tenant accepts the Leased Premises in its present condition as
                  of the completion of Landlord's Work and without any
                  representation or warranty by Landlord as to the condition of
                  said Leased Premises or its suitability to Tenant's use or
                  occupancy and the taking of possession of the Leased Premises
                  by Tenant shall be conclusive evidence that it was in good and
                  satisfactory condition at such time.

         (b)      Tenant agrees to indemnify and save the Landlord, its
                  successors and assigns, harmless against any and all claims,
                  demands, damages, and costs and expenses, including reasonable
                  attorneys' fees, for the defense thereof, arising from the
                  conduct of or management of the business being conducted by
                  Tenant in the Leased Premises, or from any breach or default
                  on the part of Tenant in the performance of any covenant or
                  agreement on the part of Tenant to be performed pursuant to
                  the terms of this Lease, or from any act or negligence of
                  Tenant, its agents, contractors, servants, employees,
                  sublessees, in or about the Leased Premises, the sidewalks
                  adjoining the same, and the loading docks adjacent to the
                  Leased Premises. In case of any action or proceeding by or
                  against the Landlord by reason of any such claims, upon notice
                  from Landlord, Tenant covenants to defend such action or
                  proceeding with counsel reasonably satisfactory to Landlord.
                  Landlord shall not be liable to Tenant, and Tenant waives all
                  claims for damages to person or property sustained by Tenant
                  or Tenant's employees, agents, servants, invitees and
                  customers or to any other person resulting from the Leased
                  Premises or any equipment or appurtenances thereto becoming
                  out of repair or resulting from any accident or occurrence in
                  or about the Leased Premises, or the building in which they
                  are situated. This shall apply especially, but not
                  exclusively, to the flooding of the basement or any surface
                  areas, and the damage caused by refrigerators, sprinkling
                  devices, air conditioning apparatus, if any, water, snow,
                  frost, steam, excessive heat or cold, falling plaster, broken
                  glass, sewage, gas odors or noise, or the bursting or leaking
                  of pipes or plumbing fixtures. All property belonging to
                  Tenant or any other occupant of the Leased Premises shall be
                  there at the sole risk of Tenant or of any other such person
                  only, and Landlord shall not be liable for any damages
                  thereto, or for theft or misappropriation thereof.

         11. MUTUAL WAIVER OF RIGHT OF SUBROGATION. Each party hereto expressly
waives any and all claims which arise or may arise in his or its favor and
against the other party hereto, or its respective agents, servants or employees,
during the term of this Lease hereinabove provided, or any extension thereof,
for any and all loss of or damage to any of his or its property located within
or upon or constituting a part of the building of which

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the Leased Premises are a part or underlying land, resulting from any peril or
risk customarily covered by standard Minnesota fire insurance policy with
extended coverage provisions (whether such insurance is in effect or not),
notwithstanding said injury or damage is caused by the negligence of either of
the parties hereto, their agents, servants or employees. Each of the parties
agrees to look to his or its own insurance carrier for recovery of any damages
sustained to his or its property, hereby waiving any rights of subrogation
against the other.

         12. INSURANCE.

         (a)      Landlord shall, at all times during the term of this Lease,
                  maintain a policy or policies of insurance issued by and
                  binding upon some solvent insurance company insuring the
                  building against all risk of direct physical loss in an amount
                  equal to 100% of the full replacement cost of the building
                  structure and its improvements as of the date of the loss;
                  provided that Landlord shall not be obligated in any way or
                  manner to insure any personal property or fixtures of Tenant
                  or which Tenant may have upon, within or installed within the
                  Leased Premises, or any additional improvements which Tenant
                  may construct on the Leased Premises. Tenant agrees that the
                  cost of maintaining such insurance shall be an operating
                  expense within the meaning of Paragraph 4 hereof, and it
                  shall, therefore, reimburse Landlord for its pro-rata share of
                  such insurance premiums.

         (b)      Tenant agrees to procure and maintain a policy or policies of
                  insurance at its own cost and expense, insuring the Landlord,
                  its successors and assigns, as well as Tenant, from all
                  claims, demands or actions for injury or death to any person,
                  or property damage, in an amount reasonably agreed to by
                  Landlord. Said insurance shall not be subject to cancellation
                  except after thirty (30) days prior written notice to
                  Landlord. The policy or policies, or duly executed
                  certificate(s) for same, together with satisfactory evidence
                  of the payment of the premium thereof, shall be deposited with
                  the Landlord at the commencement of the term and renewals
                  thereof not less then thirty (30) days prior to the expiration
                  of the term of such insurance. If Tenant fails to comply with
                  such requirements, Landlord may obtain such insurance and keep
                  the same in effect, and Tenant shall pay Landlord the premium
                  cost thereof upon demand as a part of the additional rent due
                  hereunder.

         (c)      In addition, Tenant agrees to procure and maintain at its own
                  cost and expense all risk fire and extended coverage insurance
                  for the full

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                  replacement value of Tenant's leasehold improvements, fixtures
                  and furnishings.

         13. DAMAGE BY FIRE OR OTHER CASUALTIES.

         (a)      In case the Leased Premises shall be partially or totally
                  destroyed by fire or other casualty so as to render fifty
                  percent (50%) or more of the Leased Premises untenantable or
                  fifty percent (50%) or more of the building of which the
                  Leased Premises are a part untenantable, either the Landlord
                  or Tenant may terminate this Lease by notice in writing within
                  sixty (60) days after such destruction or damage. In the event
                  that the Landlord does not terminate this Lease as above
                  provided, or the damage or destruction does not exceed the
                  percentage of the Leased Premises or building above set forth,
                  the Landlord shall rebuild or otherwise restore the building
                  to good condition and fit for occupancy within a reasonable
                  period of time after such destruction or damage, and a just
                  and proportionate part of the rent shall be abated until so
                  repaired, based upon the time and to the extent the Leased
                  Premises are rendered untenantable. In any event, if the
                  repair or restoration of the Leased Premises is not
                  substantially completed within 180 days after the damage or
                  destruction, Tenant may, at its option, terminate this Lease
                  by delivering a written notice of termination to Landlord,
                  whereupon all rights and obligations under this Lease shall
                  cease to exist.

         (b)      Under no circumstances shall the Landlord be obligated to
                  repair or replace any of Tenant's betterments or leasehold
                  improvements, or any of its personal property or fixtures.
                  Tenant shall be obligated to repair and/or restore the same at
                  its own expense.

         14. EMINENT DOMAIN. In the event of the acquisition of the Leased
Premises, or any part thereof, by eminent domain proceedings, or negotiated sale
in lieu thereof, the following provisions shall apply:

         (a)      Total Condemnation of Leased Premises. If the whole of the
                  Leased Premises shall be so acquired, then the term of this
                  Lease shall cease and terminate as of the date possession
                  shall be taken in such proceeding or sale, and all rentals
                  shall be paid up to that date.

         (b)      Partial Condemnation. If only part of the Leased Premises
                  shall be so acquired, and such partial acquisition shall
                  render the Leased Premises unsuitable for the purposes of the
                  business of Tenant, then the term of this Lease shall cease
                  and terminate as of the date of possession, and rent shall be
                  adjusted to the date of such termination. In the event of a
                  partial taking or

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                  condemnation which is not extensive enough to render the
                  premises unsuitable for the business of Tenant, then Landlord
                  may, at its option, promptly restore the Leased Premises so as
                  to constitute the remaining premises a complete architectural
                  unit, and this Lease shall continue in full force and effect
                  with a proportionate abatement of the rent, based upon the
                  portion of the Leased Premises taken, or terminate this Lease
                  by written notice to Tenant. The rent shall also abate during
                  the restoration as to the portion of the Leased Premises
                  rendered untenantable.

         (c)      Landlord's Damages. In the event any condemnation or taking as
                  aforesaid, whether whole or partial, the Tenant shall not be
                  entitled to any part of the award paid for such condemnation
                  and Landlord shall receive the full amount of such award.
                  Tenant hereby expressly waives any right or claim to any part
                  thereof and,' by this Lease, does hereby assign and transfer
                  to Landlord such award or payment as may be made therefor, and
                  does hereby further agree to execute such documents of
                  assignment and transfer as may be required by Landlord.

         (d)      Tenant's Damages. Tenant shall be entitled to seek and recover
                  from the condemning authority only the damages to which Tenant
                  is separately entitled by Minnesota Statutes for damages to
                  Tenant's business and removal of Tenant's fixtures and
                  equipment, and this shall be Tenant's sole remedy.

         15. ASSIGNMENT AND SUBLETTING.

         (a)      Tenant shall not assign or in any manner transfer this Lease
                  or any interest therein, nor sublet the Leased Premises or any
                  part or parts thereof, or permit occupancy by anyone with,
                  through or under it, without the previous written consent of
                  the Landlord, which the Landlord agrees not to unreasonably
                  withhold. Consent by Landlord to one or more assignments of
                  this Lease, or to one or more sublettings of the Leased
                  Premises shall not operate as a waiver of Landlord's rights
                  under this section to any subsequent assignment or subletting.
                  No assignment or subletting shall release Tenant of any of its
                  obligations under this Lease, or be construed or taken as a
                  waiver of any of Landlord's rights or remedies hereunder.
                  Every assignee or sublessee of this Lease shall be subject to
                  and be bound by all of the covenants, provisions and
                  conditions of this Lease to the same extent as the original
                  tenant. Tenant agrees to notify Landlord in writing of its
                  desire to assign this Lease or sublease all or a portion of
                  the Leased Premises at least thirty (30) days prior to such
                  proposed assignment or subletting.

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<PAGE>

         (b)      Neither this Lease nor any interest therein, nor any estate
                  thereby created, shall pass to any trustee or receiver in
                  bankruptcy, or any assignee for the benefit of creditors, or
                  by operation of law.

         (c)      In lieu of granting its consent to any proposed assignment or
                  subletting of this Lease, Landlord may, in its discretion,
                  terminate and cancel this Lease upon thirty (30) days written
                  notice to Tenant, whereupon this Lease shall terminate and
                  Tenant shall be released from all liabilities hereunder,
                  except for all accrued liabilities.

         16. ACCESS TO PREMISES. Landlord shall have the right to enter upon the
Leased Premises during business hours or upon twenty-four (24) hours notice,
except in emergencies when no notice is required, for the purposes of inspecting
the same or making any alterations or additions thereto, or to the building in
which the same are located, or for the purposes of exhibiting the same to
prospective tenants, purchasers or others, and shall have the right to place a
"For Rent" sign or signs upon the Leased Premises during the last 120 days of
the Lease term or any renewal thereof. Landlord shall not be liable to Tenant in
any manner for any expense, loss or damage by reason thereof (unless caused in
connection with alterations or additions), nor shall the exercise of such right
be deemed an eviction or disturbance of Tenant's use or possession.

         17. DEFAULT BY TENANT AND LANDLORD'S REMEDIES.

         (a)      The following shall be Events of Default by Tenant under this
                  Lease:

                  (1)      The failure of Tenant to pay an installment, or any
                           portion thereof, of base or additional rent within
                           ten (10) days after the due date thereof;

                  (2)      The continued default by Tenant in any of its other
                           covenants or conditions under this Lease after thirty
                           (30) days written notice of such default to Tenant;

                  (3)      The making by Tenant of an assignment for the benefit
                           of its creditors;

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                  (4)      The Tenant ceases the conduct of active business
                           operations in, or abandons, the Leased Premises;

                  (5)      In the event proceedings are instituted by or against
                           Tenant for the reorganization, liquidation or
                           involuntary dissolution of Tenant, for its
                           adjudication as a bankrupt or insolvent or under
                           Chapter XI of the Bankruptcy Act, or for the
                           appointment of a receiver of the property of Tenant,
                           if involuntary, and said proceedings are not
                           dismissed, and any receiver, trustee or liquidator
                           appointed therein, discharged within thirty (30) days
                           after the institution of said proceedings;

                  (6)      The doing or permitting to be done by Tenant of any
                           act which creates a mechanic's lien or claim therefor
                           against the land or building of which the Leased
                           Premises are a part, except pursuant to Section 9(d).

         (b)      Upon the occurrence of any Event of Default set forth above,
                  Landlord, in addition to any of the remedies available at law
                  or equity, shall have the option to pursue any one or more of
                  the following remedies without any notice or demand:

                  (1)      Terminate this Lease and recover possession of the
                           Leased Premises in accordance with Minnesota law, in
                           which event Tenant shall immediately surrender the
                           Leased Premises to Landlord and, if Tenant fails to
                           surrender the Leased Premises, Landlord may, without
                           prejudice to any other remedy which it may have for
                           possession or recovery of rent, enter upon and take
                           possession of the Leased Premises, and lock out,
                           expel or remove Tenant and any other person who may
                           be occupying all or any part of the Leased Premises
                           without being liable for prosecution for any claim
                           for damages. Tenant agrees to pay on demand the
                           amount of all loss and damage which Landlord may
                           suffer by reason of the termination of the Lease
                           under this subsection, whether through the inability
                           to relet the Leased Premises on satisfactory terms or
                           otherwise. Upon termination of this Lease, the
                           Landlord shall be entitled to recover from Tenant
                           forthwith as its damages, the sum of money equal to a
                           total of (i) all costs of recovering the Leased
                           Premises, (ii) the unpaid rent owed at the time of
                           termination, plus interest thereon from the due date
                           at the maximum rate permitted by applicable law,
                           (iii) an amount equal to the balance of the rent for
                           the remainder of the terms, discounted to present
                           value, utilizing an eight percent (8%) discount
                           favor, and (iv) any other sum of money and damages
                           owed by Tenant to Landlord;

                                       13
<PAGE>

                  (2)      Recover possession of the Leased Premises in
                           accordance with Minnesota law without termination of
                           the Lease and, if necessary, expel or remove the
                           Tenant, and lock out, expel or remove Tenant and any
                           other person that may be occupying all or any part of
                           the Leased Premises without being liable for
                           prosecution for any claim for damages, and relet the
                           Leased Premises on behalf of Tenant, and receive
                           directly the rent by reason of subletting. Tenant
                           agrees to pay Landlord on demand any deficiency that
                           may arise, by reason of any reletting of the Leased
                           Premises and any expenditures made by Landlord for
                           remodeling or repairing in order to relet the Leased
                           Premises. No such re-entry or taking of possession of
                           the Leased Premises by Landlord shall be construed as
                           an election on its part to terminate this Lease
                           unless a written notice of such intention be given to
                           Tenant, or unless the termination thereof be decreed
                           by a court of competent jurisdiction;

         If the default can be cured by the expenditure of money, Landlord may,
at its option, cure such default, and Tenant shall be obligated to reimburse
Landlord upon demand, as additional rent hereunder, for all such expenditures,
together with interest, at the rate of twelve percent (12%) per annum or, if
lesser, the maximum rate permitted by law, and costs and reasonable attorneys'
fees incurred in connection with such cure and collecting such amounts from
Tenant.

         In the event that Tenant defaults in the performance of any of the
terms, covenants, agreements or conditions contained in this Lease, and Landlord
successfully enforces all or any part of this Lease or recovers possession of
the Leased Premises, Tenant agrees to pay or reimburse Landlord for all costs
and expenses incurred in connection therewith, including reasonable attorneys'
fees.

         ll rights and remedies of Landlord and Tenant herein shall be
cumulative and none shall exclude any right or remedy allowed by law, and said
rights and remedies may be exercised and enforced concurrently, and whenever and
as often as the occasion therefore arises.

         18. SURRENDER OF POSSESSION.

                                       14
<PAGE>

         (a)      At the expiration of the tenancy created hereunder, whether by
                  lapse of time or otherwise, Tenant shall promptly remove all
                  personal property belonging to Tenant or persons claiming
                  through Tenant and surrender the Leased Premises in good
                  condition and repair, broom-clean, reasonable wear and tear
                  and loss by fire or unavoidable casualty excepted.

         (b)      In the event Tenant remains in possession of the Leased
                  Premises after the expiration of the tenancy created
                  hereunder, and without the execution of a new lease, it shall
                  be deemed to be occupying the Leased Premises from
                  month-to-month, subject to all of the conditions, provisions
                  and obligations of this Lease insofar as the same are
                  applicable to a month-to-month tenancy, except that the base
                  rent payable shall be increased to 125% of the base rent
                  provided in Paragraph 3 hereof.

         (c)      Upon the expiration of the tenancy hereby created, if the
                  Landlord has requested Tenant to remove all of the additions,
                  fixtures and installations placed upon the Leased Premises by
                  Tenant and designated in said request, and to repair any
                  damage occasioned by such removal, and if Tenant fails to
                  remove the same or make such repairs, Landlord may effect such
                  removals and repairs, and Tenant shall pay to Landlord the
                  cost thereof, with interest at the rate of eight percent (8%)
                  per annum from the date of payment by Landlord.

         19. SUBORDINATION. Tenant agrees that this Lease shall be subordinate
to any mortgage currently or hereafter placed upon the building of which the
Leased Premises are a part by the Landlord, and agrees to execute any and all
documents necessary to indicate that this Lease is subordinate to any such
mortgage; provided, however, Tenant shall not be disturbed in its possession of
the Leased Premises by any mortgagee or purchaser at a mortgage foreclosure
sale, so long as Tenant is not in default under the terms hereof. Tenant shall
execute and deliver whatever instruments may be required for the above purposes,
and, failing to do so within ten (10) days after demand in writing, does hereby
make, constitute and irrevocably appoint Landlord as its attorney-in-fact and in
its name, place and stead so to do. Tenant further agrees to furnish within ten
(10) days of receipt of the form, from time to time upon request of Landlord or
Landlord's mortgagee

                                       15
<PAGE>

an estoppel certificate on the form prepared by Landlord and delivered to
Tenant, containing items customarily certified to therein. Tenant further agrees
to execute and deliver to Landlord within ten (10) days of receipt of the form
thereof, a memorandum or short form lease in recordable form, containing such
items of this Lease as Tenant shall request.

         20. NOTICES. Wherever under this Lease a provision is made for notice
of any kind, such notice shall be in writing and signed by or on behalf of the
party giving or making the same, and it shall be deemed sufficient notice and
service thereof if such notice is to Tenant and sent by registered or certified
mail, postage prepaid, to the address of Tenant at: Attention: Chronimed, Inc.,
Vice President of Finance, 13911 Ridgedale Drive, Minnetonka, Minnesota 55305
and Chronimed, Inc., 6214 Bury Drive, Eden Prairie, Minnesota 55346, and to the
Landlord for such purpose, at the place then fixed for payment of rent, or at
such other address as may be furnished by Landlord. By notice in the manner
above set forth, either party may designate a different location to which notice
shall be sent.

         21. COMMISSIONS. Landlord agrees to indemnify and hold Tenant harmless
against all claims, damages, costs or expenses (including costs incurred in
defending any claim) for any leasing fees or commissions resulting from the
execution of this Lease.

         22. GENERAL.

         (a)      The various rights and remedies herein contained and reserved
                  to each of the parties hereto shall not be considered as
                  exclusive of any other right or remedy of such party, but
                  shall be construed as cumulative and shall be in addition to
                  every other remedy now or hereafter existing at law, in
                  equity, or by statute. No delay or omission of the right to
                  exercise any power by either party shall impair any such right
                  or power, or shall be construed as a waiver

                                       16
<PAGE>

                  of any default, or as acquiescence therein. One or more
                  waivers of any covenant, term or condition of this Lease by
                  either party shall not be construed by the other party as a
                  waiver of any subsequent breach of the same covenant, term or
                  condition. The consent or approval by either party to or of
                  any act by the other party of a nature requiring consent or
                  approval shall not be deemed to waive or render unnecessary
                  consent or approval of a subsequent similar act.

         (b)      Tenant shall give written notice to Landlord in case of fire
                  or accidents in the Leased Premises, or of defects therein, or
                  in any fixtures or equipment.

         (c)      The headings of the several articles contained herein are for
                  convenience only and do not define, limit or construe the
                  contents of such articles.

         (d)      The covenants, agreements and obligations herein contained
                  shall extend to, bind or inure to the benefit of not only of
                  the parties hereto, but their respective personal
                  representatives, heirs, successors and assigns.

         (e)      Whenever a period of time is herein provided for the Landlord
                  to do or perform any act or thing, Landlord shall not be
                  liable or responsible for any delays due to strikes, riots,
                  acts of God, shortages of labor or materials, national
                  emergency, acts of a public enemy, governmental restrictions,
                  laws or regulations, or any other cause or causes whatever,
                  whether similar or dissimilar to those enumerated, beyond its
                  reasonable control.

         (f)      Tenant shall not record this Lease without the written consent
                  of Landlord.

         (g)      The laws of the State of Minnesota shall govern the validity,
                  performance and enforcement of this Lease.

         (h)      The invalidity or enforceability of any provision of this
                  Lease shall not affect or impair the validity of any other
                  provision.

         (i)      Landlord further covenants that Tenant, upon paying the
                  rentals provided for herein, and upon performing the covenants
                  and agreements to be performed by it, will have, hold and
                  enjoy quiet possession of the Leased Premises.

         (j)      This Lease constitutes the entire agreement of the parties in
                  respect of the Lease by Tenant of the Leased Premises and
                  there are no understandings or agreements not incorporated in
                  this Lease. Any other written agreements by and between the
                  parties are terminated upon the commencement of the term of
                  this Lease. This Lease may not be modified except in a writing
                  executed by all parties hereto, or their permitted assignees.

                                       17
<PAGE>

         (k)      Tenant has no right to light or air over the building or
                  underlying land.

         (l)      The word "Tenant" wherever used in this Lease shall be
                  considered to mean tenants in all cases where there is more
                  than one tenant and the necessary grammatical changes required
                  to make provisions hereof applicable to corporations,
                  partnerships or individuals shall in all cases be assumed as
                  though in each case fully expressed.

         IN WITNESS WHEREOF, Landlord and Tenant have hereunto set their hands
as of the date and year first above written.

LANDLORD:                               TENANT:

JORANDCOR, INC.                         CHRONIMED, INC.

By:                                     By:

Its:                                    Its:EXHIBIT 10.10

                                 LEASE AGREEMENT

         THIS LEASE (the "Lease") is executed this 27th day of October, 1998, by
and between DUKE REALTY MINNESOTA, LLC, a Minnesota limited liability company
("Landlord"), and CHRONIMED, INC., a Minnesota corporation ("Tenant")

                                   WITNESSETH:
                          ARTICLE I - LEASE OF PREMISES

Section 1.01. Basic Lease Provisions and Definitions.

A.       Leased Premises (shown outlined on Exhibit A attached hereto): Edina
         Interchange V, 5182 West 76(degree)' Street, Edina, Minnesota 55435;

B.       Rentable Area: approximately 25,420 square feet

         Landlord shall use commercially reasonable standards, consistently
         applied, in determining the Rentable Area and the rentable area of the
         Building. Landlord's determination of Rentable Area shall conclusively
         be deemed correct for all purposes hereunder.

C.       Tenant's Proportionate Share: 18.27%0

D.       Minimum Annual Rent:
                  11/15/98 -07/14/99        $ 91,693.28 (8 months)
                  07/ I 5/99 - 07/ 14/01    $149,944.80 per year
                  07/15/01 - 11/14/01       $ 49,981.60 (4 months)

E.       Monthly Rental Installments:
                  11/15/98-07/14/99 $11,461.66 per month
                  07/15/99- 11/14/01        $12,495.40 per month

F.       Landlord's Share of Expenses: N/A

G.       Lease Term: Three (3) years

H.       Commencement Date: November 15, 1998

1.       Security Deposit: None

J.       Guarantor: None

K.       Broker: Duke Really Services Limited Partnership representing Landlord
L.       Permitted Use: Office, laboratory and warehouse use
M.       Address for notices:

Landlord:         Duke Realty Minnesota, LLC    Tenant: Chronimed, Inc.
                  856 Fifth Street South        10900 Red Circle Drive
                  Hopkins, MN 55343-7750        Minnetonka, MN 55343

<PAGE>

Address for rental and other payments:

Duke Realty Minnesota, LLC
NW 7210
P.O. Box 1450
Minneapolis, MN 55485-7210

Section 1.02. Leased Premises. Landlord herebv leases to Tenant and Tenant
leases from Landlord, under the terms and conditions herein, the Leased
Premises.

                         ARTICLE 2 -TERM AND POSSESSION

Section 2.01. Term. The term of this Lease ("Lease Term") shall be for the
period of time set forth in Item G of the Basic Lease Provisions and shall
commence on the Commencement Date. Upon delivery of possession of the Leased
Premises toTenant,Tenant shall execute a letter of understanding acknowledging
(i) the Commencement Date of this Lease, and (ii) that Tenant has accepted the
Leased Premises. If Tenant takes possession of and occupies the Leased Premises,
Tenant shall be deemed to have accepted the Leased Premises and that the
condition of the Leased Premises and the Building was at the time satisfactory
and in conformity with the provisions of this Lease in all respects.

Section 2 02. Construction of Tenant Improvements. Tenant has personally
inspected the Leased Premises and accepts the same "AS IS" without
representation or warranty by Landlord of any kind and with the understanding
that Landlord shall have no responsibility with respect thereto except to
construct in a good and workmanlike manner the improvements designated as
Landlords obligations in the attached Exhibit B in an amount not to exceed Nine
Thousand Two Hundred Ten Dollars ($9,210.00)("Landlord's Allowance"). Tenant
hereby agrees at Tenant's option, that all costs in excess of Landlord's
Allowance shall be either (i) amortized over the term of the Lease at eleven
percent (11%) per annum; or (ii) paid directly to Landlord by Tenant within
thirty (30) days of Landlord's request therefor.

Section 2.03. Surrender of the Premises. Upon the expiration or earlier
termination of this Lease, Tenant shall immediately surrender the Leased
Premises to Landlord in broom-clean condition and in good condition and repair.
Tenant shall also remove its personal properly, trade fixtures and any of
Tenant's alterations designated by Landlord, promptly repair any damage caused
by such removal, and restore the Leased Premises to the condition existing prior
to the installation of such items. If Tenant fails to do so, Landlord may
restore the Leased Premises to such condition at Tenant's expense, Landlord may
cause all of said property to be removed at Tenant's expense, and Tenant hereby
agrees to pay all the costs and expenses thereby reasonably incurred. All Tenant
property which is not removed within ten (10) days following Landlord's written
demand therefor shall be conclusively deemed to have been abandoned by Tenant,
and Landlord shall be entitled to dispose of such property without thereby
incurring any liability to Tenant. The provisions of this section shall survive
the expiration or other termination of this Lease.

Section 2.04. Holding-Over. If Tenant retains possession of the Leased Premises
after the

<PAGE>

expiration or earlier termination of this Lease, Tenant shall become a tenant
from month to month at 200% of the Monthly Rental Installment in effect at the
end of the Lease Term. and otherwise upon the terms, covenants and conditions
herein specified, so far as applicable. Acceptance by Landlord of rent in such
event shall not result in a renewal of this Lease, and Tenant shall vacate and
surrender the Leased Premises to Landlord upon Tenant being given thirty (30)
days' prior written notice from Landlord to vacate. This Section 2.04 shall in
no way constitute a consent by Landlord to any holding over by Tenant upon the
expiration or earlier termination of this Lease, nor limit Landlord's remedies
in such event.

                                ARTICLE 3 - RENT

Section 3.01. Base Rent. Tenant shall pay to Landlord the Minimum Annual Rent in
the Monthly Rental Installments, in advance, without deduction or offset,
beginning on the Commencement Date and on or before the first day of each and
every calendar month thereafter during the Lease Term. The Monthly Rental
Installment for partial calendar months shall be prorated.

Section 3.02. Additional Rent. In addition to the Minimum Annual Rent Tenant
shall pay to Landlord for each calendar year during the Lease Term, as
"Additional Rent," "Tenant's Proportionate Share or ,if costs and expenses
incurred by Landlord during the Lease Term for Real Estate Taxes and Operating
Expenses for the Building and common areas (collectively "Common Area Charges")
to the extent such Common Area Charges exceed Landlord's Share of Expenses.

         "Operating Expenses" shall mean all of Landlord's expenses for
operation, repair, replacement and maintenance to keep the Building and common
areas in good order, condition and repair, including, but not limited to,
service and other charges incurred in the operation and maintenance of the
electrical systems, heating, ventilation and air conditioning systems and
sprinkler and plumbing systems; management fees; utilitities; stormwater
discharge fees; license, permit, inspection and other fees; fees and assessments
imposed by any covenants or owners, association; security services; insurance
premiums; and maintenance, repair and replacement of the driveways, parking
areas (including snow removal), exterior lighting, landscaped areas, walkways,
curbs, drainage strips, sewer lines, exterior walls, foundation, structural
frame, roof and gutters.

         "Real Estate Taxes" shall include any form of real estate tax or
assessment or service payments in lieu thereof, and any license fee, commercial
rental tax, improvement bond or other similar charge or tax (other than
inheritance, personal income or estate taxes) imposed upon the Building or
common areas (or against Landlord's business of leasing the Building) by any
authority having the power to so charge or tax, together with costs and expenses
of contesting the validity or amount of Real Estate Taxes.

Section,3.03. Payment of Additional Rent. Landlord shall estimate the total
amount of Additional Rent to be paid by Tenant during each calendar year of the
Lease Term, pro-rated for any partial years. Commencing on the Commencement
date. Tenant shall pay to Landlord each month, at the same time the Monthly
Rental installment is due, an amount equal to one-twelfth (1/12) of the
estimated Additional Rent for such year. Within a reasonable time after the end
of each calendar year, Landlord shall submit to Tenant a statement of the actual
<PAGE>

amount of such Additional Rent and within thirty (30) days after receipt of such
statement, Tenant shall pay any deficiency between the actual amount owed and
the estimates paid during such calendar year. In the event of overpayment,
Landlord shall credit the amount of such overpayment toward the next
installments of Minimum Rent.

Section 3.04. Late Charges. Tenant acknowledges that Landlord shall incur
certain additional additional unanticipated administrative and legal costs and
expenses if Tenant fails to timely pay any payment required hereunder.
Therefore, in addition to the other remedies available to Landlord hereunder, if
any payment required to be paid by Tenant to Landlord hereunder shall become
overdue, such unpaid amount shall bear interest from the due date thereof to the
date of payment at the Prime Rate of interest plus six percent (6%) per annum.

              ARTICLE 4 - SECURITY DEPOSIT - Intentionally Omitted

                                 ARTICLE 5 - USE

Section 5.01. Use of Leased Premises. The Leased Premises are to be used by
Tenant solely for the Permitted Use and for NO other purposes without the prior
written consent of Landlord.

Section 5.02. Covenants of Tenant Regarding Use. Tenant shall (i) use and
maintain the Leased Premises and conduct its business (hereon in a safe,
careful, reputable and lawful manner, (ii) comply with all laws, rules,
regulations, orders, ordinances, directions and requirements of any governmental
authority or agency, now in force or which may hereafter be in force, including
without limitation those which shall impose upon Landlord or Tenant any duty
with respect to or triggered by change in the use or occupation of, or any
improvement or alteration to, the Leased premises, and (iii) comply with and
obey all reasonable directions of the Landlord, including :my rules and
regulations that may be adopted by Landlord from time to time. Tenant shall not
(do or permit anything to be done in or about the Leased Premises or common
areas which constitutes a nuisance or which interferes with the rights of other
tenants or injures or annoys them. Landlord shall not be responsible to Tenant
for the nonperformance by any other tenant or occupant of the Building of its
lease or of any rules and regulations. Tenant shall not overload the floors of
the Leased Premises. All damage to the floor structure or foundation of the
Building due to improper positioning or storage of items or materials shall be
repaired by Landlord at the sole expense of Tenant, who shall reimburse Landlord
immediately therefor upon demand. Tenant shall not use the Leased Premises, or
allow the Leased Premises to be used, for any purpose or in any manner which
would invalidate any policy of insurance now or hereafter carried on the
Building or increase the rate of premiums payable on any such insurance policy
unless Tenant reimburses Landlord its Additional Rent for any increase in
premiums charged.

Section 5.03. Landlords Rights Regarding Use. In addition to the rights
specified elsewhere in this Lease, Landlord shall have the following rights
regarding the use of the Leased Premises or the common areas, each of which may
be exercised without notice or liability to Tenant, (a) Landlord may install
such signs, advertisements, notices or tenant identification information as it
shall deem necessary or proper; (b) Landlord shall have the right at any time to
control, change or otherwise alter the common areas as it shall deem necessary
or proper; and (c) Landlord or Landlord's agent shall be permitted to inspect or
examine the Leased Premises at any reasonable time, and Landlord shall have the
right to make any repairs to the Leased Premises which are necessary for its
preservation; provided, however, that any repairs made by

<PAGE>

Landlord shall be at Tenant's expense, except as provided in Section 7.02
hereof. Landlord shall incur no liability to Tenant for such entry, nor shall
such entry constitute an eviction of Tenant or a termination of this Lease, or
entitle Tenant to any abatement of rent therefor.

                       ARTICLE 6 - UTILITIES AND SERVICES

         Tenant shall obtain in its own name and pay directly to the appropriate
supplier the cost of all utilities and services serving the Leased Premises.
However, if any services or utilities are jointly metered with other property,
Landlord shall make a reasonable determination of' Tenant's proportionate share
of the cost of such utilities and services and Tenant shall pay such share to
Landlord within fifteen (15) days after receipt of Landlord's written statement.
Landlord shall not be liable in damages or otherwise for any failure or
interruption of any utility service and no such failure or interruption shall
entitle Tenant to terminate this Lease or withhold sums due hereunder. In the
event of utility "deregulation", Landlord shall choose the service provider.

                       ARTICLE 7 - MAINTENANCE AND REPAIRS

Section 7.01. Landlord's Responsibility. During the term of this Lease, Landlord
shall maintain in good condition and repair, and replace as necessary, the
electrical systems, healing and air conditioning systems, sprinkler and plumbing
systems, roof, exterior walls, foundation and structural frame of the Building
and the parking and landscaped areas, the costs of which shall he included in
Operating Expenses; provided, however, that to the extent any of the foregoing
items require repair because of the negligence, misuse, or default of Tenant,
its employees, agents, customers or invitees, Landlord shall make such repairs
solely at Tenant's expense.

Section 702. Alterations. Tenant shall not permit alterations in or to the
Leased Premises unless and until the plans have been approved by Landlord in
writing. As a condition of such approval, Landlord may require Tenant to remove
the alterations and restore the Leased Premises upon termination of this Lease;
otherwise, all such alterations shall at Landlord's option become a part of the
realty and the property of Landlord, and shall not be removed by Tenant. Tenant
shall ensure that all alterations shall be made in accordance with all
applicable laws, regulations and building codes, in a good and workmanlike
manner and of quality equal to or better than the original construction of the
Building. No person shall be entitled to any lien derived through or under
Tenant for any labor or material furnished to the Leased Premises, and nothing
in this Lease shall be construed to constitute a consent by Landlord to the
creation of any lien. If any lien is filed against the Leased Premises for work
claimed to have been done for or material claimed to have been furnished to
Tenant, Tenant shall cause such lien to be discharged of record within thirty
(30) days after filing. Tenant shall indemnify Landlord from all costs, losses,
expenses and attorneys' fees in connection with any construction or alteration
and any related lien.

                              ARTICLE 8 - CASUALTY

Section 8.01. Casually. In the event of total or partial destruction of the
Building or the Leased Premises by fire or other casualty, Landlord agrees to
promptly restore and repair the Leased Premises; provided, however, Landlord's
obligation hereunder shall be limited to the reconstruction of such of the
tenant finish improvements as were originally required to be made by Landlord,
if any. Rent shall proportionately abate during the time that the leased
Premises or

<PAGE>

part thereof are unusable because of any such damage. Notwithstanding the
foregoing, if the Leased Premises are (i) so destroyed that they cannot be
repaired or rebuilt within one hundred eighty (180) days from the casualty date;
or (ii) destroyed by a casualty which is not covered by the insurance required
hereunder or, if covered, such insurance proceeds are not released by any
mortgagee entitled thereto or are insufficient to rebuild the Building and the
Leased Premises; then, in case of a clause (i) casualty, either Landlord or
Tenant may, or, in the case of a clause (ii) casualty, then Landlord may, upon
thirty (30) days' written notice to the other party, terminate this Lease with
respect to matters thereafter accruing.

Section 8 02. Fire and Extended Coverage Insurance. During the Lease Term,
Landlord shall maintain fire and extended coverage insurance on the Building,
but shall not protect Tenant's property on the Leased Premises; and,
notwithstanding the provisions of Section 9.01, Landlord shall not be liable for
any damage to Tenant's property, regardless of cause, including the negligence
of Landlord and its employees, agents and invitees. Tenant hereby expressly
waives any right of recovery against Landlord for damage to any property of
Tenant located in or about the Leased Premises, however caused, including the
negligence of Landlord and its employees, agents and invitees; and,
notwithstanding the provisions of Section 9.01 below, Landlord hereby expressly
waives any rights of recovery against Tenant for damage to the Leased Premises
or the Building which is insured against under Landlord's fire and extended
coverage insurance. All insurance policies maintained by Landlord or Tenant as
provided in the Lease shall contain an agreement by the insurer waiving the
insurer's right of subrogation against the other party to this Lease.

                         ARTICLE 9 - LIABILITY INSURANCE

Section 9.01. Tenant's Responsibility. Landlord shall not be liable to Tenant or
to any other person for (i) damage to property or injury or death to persons due
to the condition of the Leased Premises, the Building or the common areas, or
(ii) the occurrence of any accident in or about the Leased Premises or the
common areas, or (iii) any act or neglect of Tenant or any other tenant or
occupant of the Building or of any other person, unless such damage. injury or
death is directly and solely the result of Landlord's negligence; and Tenant
hereby releases Landlord from any and all liability for the same. Tenant shall
be liable for, and shall indemnify and defend Landlord from, any and all
liability for (i) any act or neglect of Tenant and any person coming on the
Leased Premises or common areas by the license of Tenant, express or implied,
(ii) any damage to the Leased Premises, and (iii) any loss of or damage or
injury to any person (including death resulting therefrom) or property occurring
in, on or about the Leased Premises, regardless of cause, except for any loss or
damage from fire or casualty insured as provided in Section 8.02 and except for
that caused solely and directly byLandlord's negligence.

Section 9.02. Tenants Insurance. Tenant shall carry general public liability and
property damage insurance, issued by one or more insurance companies acceptable
to Landlord, with the following minimum coverages:

A.       Worker's Compensation: minimum statutory amount.

B.       Commercial General Liability Insurance, including blanket, contractual
         liability, broad form property damage, personal injury, completed
         operations, products liability, and fire damage: Not less than
         $5,000,000 Combined Single Limit for both bodily injury and property
         damage.

<PAGE>

C.       Fire and Extended Coverage, Vandalism and Malicious Mischief, and
         Sprinkler Leakage insurance, if applicable, for the full cost of
         replacement of Tenants property.

D.       Business interruption insurance.

The insurance policies shall protect Tenant and Landlord as their interests may
appear, naming Landlord and Landlord's managing agent and mortgagee as
additional insureds, and shall provide that they may not be canceled on less
than thirty (30) days' prior written notice to Landlord. Tenant shall furnish
Landlord with Certificates of Insurance evidencing all required coverage. If
Tenant fails to carry such insurance and furnish Landlord with such Certificates
of Insurance after a request to do so, Landlord may obtain such insurance and
collect the cost thereof from Tenant.

                           ARTICLE 10 - EMINENT DOMAIN

If all or any substantial part of the Building or common areas shall be acquired
by the exercise of eminent domain, Landlord may terminate this Lease by giving
written notice to Tenant within fifteen (15) days after possession thereof is so
taken. If all or any part of the Leased Premises shall be acquired by the
exercise of eminent domain so that the Leased Premises shall become unusable by
Tenant for the Permitted Use, Tenant may terminate this lease by giving written
notice to Landlord within fifteen (15) days after possession thereof is so
taken. All damages awarded shall belong to Landlord, provided, however, that
Tenant may claim dislocation damages if such amount is not subtracted from
Landlord's award.

                      ARTICLE 11 - ASSIGNMENT AND SUBLEASE

Tenant shall not assign this Lease or sublet the Leased Premises in whole or in
part without Landlord's prior written consent which consent shall not be
unreasonably withheld, delayed or conditioned. In the event of any assignment or
subletting, Tenant shall remain primarily liable hereunder. The acceptance of
rent from any other person shall not be deemed to be a waiver of any of the
provisions of this Lease or to be a consent to the assignment of this Lease or
the subletting of the Leased Premises. Without in any way limiting Landlord's
right to refuse to consent to any assignment or subletting of this Lease,
Landlord reserves the right to refuse to give such consent if in Landlord's
reasonable opinion (i) the Leased Premises are or may be in any way adversely
affected; (ii) the business reputation of the proposed assignee or subtenant is
unacceptable; Landlord further expressly reserves the right to refuse to give
its consent to any subletting if the proposed rent is publicly advertised to be
less than the then current rent for similar premises in the Park. Tenant agrees
to reimburse Landlord for reasonable accounting and attorneys' fees incurred in
conjunction with file processing and documentation of any such requested
assignment, subletting or any other hypothecation of this Lease or Tenant's
interest in and to the Leased Premises.

                       ARTICLE. 12- TRANSFERS BY LANDLORD

         Section 12.01. Sale of the Building. Landlord shall have the right to
sell the Building at any time during the Lease Term, subject only to the rights
of Tenant hereunder; and such sale shall operate to release Landlord from
liability hereunder after the date of such conveyance.

         Section 12.02. Subordination and Estoppel Certificate. Landlord shall
have the right to

<PAGE>

subordinate this Lease to any mortgage presently existing or hereafter placed
upon the Building by so declaring in such mortgage. Within ten (10) days
following receipt of a written request from Landlord, Tenant shall execute and
deliver to Landlord, without cost, any instrument which Landlord deems necessary
or desirable to confirm the subordination of this Lease and an estoppel
certificate in such form as Landlord may reasonably request certifying (i) that
this Lease is in full force and effect and unmodified or stating the nature of
any modification, (ii) the date to which rent has been paid, (iii) that there
are not, to Tenant's, knowledge, any uncured defaults or specifying such
defaults if any are claimed, and (iv) any other matters or state of facts
reasonably required respecting the Lease. Such estoppel may be relied upon by
Landlord and by any purchaser or mortgagee of the Building. Tenant's failure to
deliver such statement within such period shall be conclusive upon Tenant that
this Lease is in full force and effect and unmodified and that there are no
uncured defaults in Landlord's performance hereunder, Notwithstanding the
foregoing, if the mortgagee shall take line to tile leased Premises through
foreclosure or deed in lieu of foreclosure, Tenant shall be allowed to continue
in possession of the Leased Premises as provided for in this Lease So long as
Tenant shall not be in default.

                        ARTICLE' 13 - DEFAULT AND REMEDY

         Section 13.01. Default. The occurrence of any of the following shall be
a "Default":

         (a) Tenant fails to pay any Monthly Rental Installment or Additional
Rent within five (5) days after the same is due, or Tenant fails to pay any
other amounts due Landlord from Tenant within tell (10) days after the same is
due.

         In the event of a default under subparagraph (a) above. Landlord shall
provide Tenant with written notice of such default one ( I) time during each
successive twelve (12) month period of the Lease Term and Tenant shall have all
additional five (5) days to cure such default before Landlord shall declare a
default or exercise its remedies herein.

         (b) Tenant fails to perform or observe any other term, condition,
covenant or obligation required under this Lease for a period of ten (10) days
after notice thereof from Landlord: provided, however, that if the nature of
Tenant's default is such that more than ten days are reasonably required to
cure, then such default shall be deemed to have been cured if Tenant commences
such performance within said ten-day period and thereafter diligently completes
the required action within a reasonable time.

         (c) All or substantially all of Tenant's assets in the Leased Premises
or Tenant's interest in this Lease are attached or levied under execution (and
Tenant does not discharge the same within sixty (60) days thereafter); it
petition in bankruptcy, insolvency or for reorganization or arrangement is filed
by or against Tenant (and Tenant fails to secure a stay or discharge thereof
within sixty (60) days thereafter); Tenant is insolvent and unable to pay its
debts its they become due; Tenant makes a general assignment for the benefit of
creditors; Tenant takes the benefit of any insolvency action or law; the
appointment of a receiver or trustee in bankruptcy for Tenant or its assets if
such receivership has not been vacated or set aside within thirty (30) days
thereafter; or, dissolution or other termination of Tenant's corporate charter
if Tenant is a corporation.

<PAGE>

         Section 13.02. Remedies. Upon the occurrence of any Default, Landlord
shall have the following rights and remedies, in addition to those allowed by
law, any one or more of which may be exercised without further notice to Tenant:

         (a) Landlord may apply the Security Deposit or re-enter the Leased
Premises and cure any default of Tenant, and Tenant shall reimburse Landlord as
additional rent for any costs and expenses which Landlord thereby incurs; and
Landlord shall not be liable to Tenant for any loss or damage which Tenant may
sustain by reason of Landlord's action.

         (b) Landlord may terminate this Lease or, without terminating (his
Lease, terminate Tenant's right to possession of the Leased Premises as of (lie
date of such default, and (hereafter (i) neither Tenant nor any person claiming
under or through Tenant shall be entitled to possession of the Leased Premises,
and Tenant shall immediately surrender the Leased Premises to Landlord; and (ii)
Landlord may re-enter the Leased Premises and dispossess Tenant and any other
occupants of the Leased Premises by any lawful means and may remove their
effects, without prejudice to any other remedy which Landlord may have. Upon the
termination of this Lease, Landlord may declare the present value (as determined
by Landlord) of all rent which would have been due under this Lease for the
balance of the Lease Term to be immediately due and payable, whereupon Tenant
shall be obligated to pay the same to Landlord, together with all loss or damage
which Landlord may sustain by reason of' Tenant's Default ("Default Damages"),
which shall include without limitation expenses of preparing the Leased Premises
for re-letting, demolition, repairs, tenant finish improvements and brokers' and
attorneys' fees, it being expressly understood and agreed that the liabilities
and remedies specified in this subsection (b) shall survive the termination of
this Lease.

         (c) Landlord may, without terminating this Lease, re-enter (lie Leased
Premises and re-let all or any part thereof for a term different from that which
would otherwise have constituted the balance of the Lease Term and for rent and
on terms and conditions different from those contained herein, whereupon Tenant
shall be immediately obligated to pay to Landlord as liquidated damages (lie
difference between the rent provided for herein and that provided for in any
lease covering a subsequent re-letting of (lie Leased Premises, for the period
which would otherwise have constituted the balance of the Lease Term, together
with all of Landlord's Default Damages.

         (d) Landlord may sue for injunctive relief or to recover damages for
any loss resulting from the breach.

         (e) In addition to the defaults and remedies described above, the
parties agree that if Tenant defaults in the performance of any (but not
necessarily the same) term or condition of this Lease three (3) or more times
during any twelve (12) month period, regardless of whether such defaults are
ultimately cured, then such conduct shall, at Landlord's option, represent a
separate Default.

         Section 13.03. Landlord's Default and Tenant's Remedies. Landlord shall
be in default if it fails to perform any term, condition, covenant or obligation
required under this Lease for a period of thirty (30) days after written notice
thereof from Tenant to Landlord: provided, however, that if the term, condition,
covenant or obligation to be performed by Landlord is such that it cannot
reasonably be performed within thirty (30) days, such default shall be deemed to

<PAGE>

have been cured if Landlord commences such performance within said thirty-day
period and thereafter diligently undertakes to complete the same. Upon the
occurrence of any such default, Tenant may sue for injunctive relief or to
recover damages for any loss resulting from the breach, but Tenant shall not be
entitled to terminate this Lease or withhold, offset or abate any sums due
hereunder.

         Section 13.04. Limitation of Landlord's Liability. If Landlord shall
fail to perform any term, condition, covenant or obligation required to be
performed by it under this Lease and if Tenant shall, as a consequence thereof,
recover a money judgment against Landlord, Tenant agrees that it shall look
solely to Landlord's right, title and interest in and to the Building for the
collection of such judgment; and Tenant further agrees that no other assets of
Landlord shall be subject to levy, execution or other process for the
satisfaction of Tenant's judgment.

         Section 13.05. Nonwaiver-of Defaults. Neither party's failure or delay
in exercising any of its rights or remedies or other provisions of this Lease
shall constitute a waiver thereof or affect its right thereafter to exercise or
enforce such right or remedy or other provision. No waiver of any default shall
be deemed to be a waiver of any other default. Landlord's receipt of less than
the full rent due shall not be construed to be other than a payment on account
of rent then due, nor shall any statement of Tenant's check or any letter
accompanying Tenant's check be deemed an accord and satisfaction. No act or
omission by Landlord or its employees or agents during the term of this Lease
shall be deemed as acceptance of a surrender of the Leased Premises, and no
agreement to accept such a surrender shall be valid unless in writing and signed
by Landlord.

         Section 13.06. Attorneys' Fees. If either party defaults in the
performance or observance of any of the terms, conditions, covenants or
obligations contained in this Lease and the non-defaulting party obtains a
judgment against the defaulting party, then the defaulting party agrees to
reimburse the non-defaulting party for the attorneys' fees incurred thereby.

                ARTICLE 14 - LANDLORD'S RIGHT TO RELOCATE TENANT

         Landlord shall have the right upon at least thirty (30) days' prior
written notice to Tenant to relocate Tenant and to substitute for the Leased
Premises other space in the Building or in the Park containing at least as much
rentable area as tile Leased Premises. Such substituted space shall be improved
by Landlord, at its expense, with improvements at least equal in quantity and
quality to those in the Leased Premises and shall be approved by the Federal
Drug Administration prior to Tenant's relocation. Landlord shall reimburse
Tenant for all reasonable expenses incurred with and caused by such relocation.
In no event shall Landlord be liable to Tenant for any consequential damages as
a result of any such relocation, including, but not limited to, loss of business
income or opportunity.

                 ARTICLE 15 - TENANT'S RESPONSIBILITY REGARDING
                  ENVIRONMENTAL LAWS AND HAZARDOUS SUBSTANCES.

         Section 15.01. Definitions.

         a. "Environmental Laws" - All federal, state and municipal laws,
ordinances, rules and regulations applicable to the environmental and ecological
condition of the Leased Premises,

<PAGE>

the rules and regulations of the Federal Environmental Protection Agency or any
other federal, state or municipal agency or governmental board or entity having
jurisdiction over the Leased Premises.

         b. "Hazardous Substances" - Those substances included within the
definitions of "hazardous substances," "hazardous materials;" "toxic substances"
"solid waste" or "infectious waste" under present or future Environmental Laws
or other federal, state or local laws or regulations.

         Section 15.02. Compliance. Tenant, at its sole cost and expense, shall
promptly comply with the Environmental Laws including any notice from any source
issued pursuant to the Environmental Laws or issued by any insurance company
which shall impose any duty upon Tenant with respect to the use, occupancy,
maintenance or alteration of the Leased Premises whether such notice shall be
served upon Landlord or Tenant.

         Section 15.03. Restrictions on Tenant.

         a. Tenant shall operate its business and maintain the Leased Premises
in compliance with all Environmental Laws.

         b. Tenant shall not cause or permit the use, generation, release,
manufacture, refining, production, processing, storage or disposal of any
Hazardous Substances on, under or about the Leased Premises, or the
transportation to or from the Leased Premises of any Hazardous Substances,
except as necessary and appropriate for its Permitted Use in which case the use,
storage or disposal of such Hazardous Substances shall be performed in
compliance with the Environmental Laws and the highest standards prevailing in
tile industry.

         Section 15.04. Notices, Affidavits, Etc.

         a. Tenant shall immediately notify Landlord of (i) any violation by
Tenant, its employees, agents, representatives, customers, invitees or
contractors of the Environmental Laws on, under or about the Leased Premises, or
(ii) the presence or suspected presence of any Hazardous Substances on, under or
about the Leased Premises and shall immediately deliver to Landlord any notice
received by Tenant relating to (i) and (ii) above from any source.

         b. Tenant shall execute affidavits, representations and the like within
five (5) days of Landlord's request therefor concerning Tenant's best knowledge
and belief regarding the presence of any Hazardous Substances on, under or about
the Leased Premises.

         Section 15.05. Landlord's Rights. Landlord and its agents shall have
the right, but not the duty, upon advance notice (except in the case of
emergency when no notice shall be required) to inspect the Leased Premises and
conduct tests thereon to determine whether or the extent to which there has
been) a violation of Environmental Laws by Tenant or whether there are Hazardous
Substances on, under or about the Leased Premises. In exercising its rights
herein, Landlord shall use reasonable efforts to minimize interference with
Tenant's business but such entry shall not constitute an eviction of' Tenant, in
whole or in part, and Landlord shall not be liable for any interference, loss,
or damage to Tenant's property or business caused thereby.

<PAGE>

         Section 15.06. Tenant's Indemnification. Tenant shall indemnify
Landlord and Landlord's managing agent from any and all claims, losses,
liabilities, costs, expenses and damages, including attorneys' fees, costs of
testing and remediation costs, incurred by Landlord in connection with any
breach by Tenant of its obligations under this Article 15. The covenants anti
obligations under this Article 15 shall survive the expiration or earlier
termination of this Lease.

         Section 15.07. Landlords Representation. Notwithstanding anything
contained in this Article 15 to the contrary, Tenant shall not have any
liability to Landlord under this Article 15 resulting from any conditions
existing, or events occurring, or any Hazardous Substances existing or
generated, at, in, on, under or in connection with the Leased premises prior to
the Commencement Date of this Lease except to the extent Tenant exacerbates the
same.

                            ARTICLE 16 -MISCELLANEOUS

         Section 16.01. Benefit of Landlord and Tenant. This lease shall inure
to the benefit of and be binding upon Landlord and Tenant and their respective
successors and assigns.

         Section 16.02. Governing-Law. This Lease shall be governed in
accordance with the laws of the State of Minnesota.

         Section 16.03. Guaranty. In consideration of Landlord's leasing the
Leased Premises to Tenant, Tenant shall provide Landlord with a Guaranty of
Lease executed by the guarantor(s) described in the Basic Lease Provisions, if
any.

         Section 16.04. Force Maieure. Landlord and Tenant, except for the
payment of rent, shall be excused for the period of any delay in the performance
of any obligation hereunder when such delay is occasioned by causes beyond its
control, including but not limited to work stoppages, boycotts, slowdowns or
strikes; shortages of materials, equipment, labor or energy; unusual weather
conditions; or acts or omissions of governmental or political bodies.

         Section 16.05. Examination of Lease. Submission of this instrument for
examination or signature to Tenant does not constitute a reservation of or
option for Lease, and it is not effective as a Lease or otherwise until
execution by and delivery to both Landlord and Tenant.

         Section 16.06. Indemnification for Leasing Commissions. The parties
hereby represent and warrant that the only real estate brokers involved in the
negotiation and execution of this Lease are the Brokers. Each party shall
indemnify the other from any and all liability for the breach of this
representation and warranty on its part and shall pay any compensation to any
other broker or person who may be entitled thereto.

         Section 16.07. Notices. Any notice required or permitted to be given
under this Lease or by law shall be deemed to have been given if it is written
and delivered in person or by overnight courier or mailed by certified mail,
postage prepaid, to the party who is to receive such notice at the address
specified in Article I. When so mailed, the notice shall be deemed to have been
given as of the date it was mailed. Either party may change its address by
giving written notice thereof to the other party.

<PAGE>

         Section 16.08. Severability of_Invalid_Provisions. If any provision of
this Lease shall he held to be invalid, void or unenforceable, the remaining
provisions shall remain in full force and effect.

         Section 16.09. Financial Statements. During the Lease Term and any
extensions thereof, Tenant shall provide to Landlord on an annual basis, within
ninety (90) days following the end of Tenant's fiscal year, a copy of Tenant's
most recent certified and audited financial statements prepared as of the end of
Tenant's fiscal year. Such financial statements shall be prepared in conformity
with generally accepted accounting principles, consistently applied.

         Section 16.10. Tenant's Representations and Warranties. The undersigned
represents and warrants to Landlord that (i) Tenant is duly organized, validly
existing and in good standing in accordance with the laws of the stale under
which it was organized; and (ii) the individual executing and delivering this
Lease on behalf of Tenant has been properly authorized to do so, and such
execution and delivery shall bind Tenant. Tenant, at Landlord's request, shall
provide Landlord with evidence of such authority.

         Section 16.11. Option to Extend.

         A. Grant and Exercise of Option. Provided that (i) Tenant has not been
in default hereunder at any time during the Term of this Lease (the "Original
Ternr"), (ii) the creditworthiness of Tenant is then acceptable to Landlord,
(iii) Tenant originally named herein remains in possession of and has been
continuously operating in the entire Leased Premises throughout the Original
Term and (iv) the current use of the Leased Premises is acceptable to Landlord,
Tenant shall have one (1) option to extend the Original Term for one (1)
additional period of three (3) years (the "Extension Term"). The Extension Term
shall be upon the same terms and conditions contained in the Lease for the
Original Term except (i) Tenant shall not have any further option to extend and
(ii) the Minimum Annual Rent shall be adjusted as set forth herein ("Rent
Adjustment"). Tenant shall exercise such option by delivering to Landlord, no
later than October 31, 2000, written notice of Tenant's desire to extend the
Original Term. Tenant's failure to properly exercise such option shall waive it.
If Tenant properly exercises its option to extend, Landlord shall notify Tenant
of the Rent Adjustment no later than ninety (90) days prior to the commencement
of the Extension Term. Tenant shall be deemed to have accepted the Rent
Adjustment if it fails to deliver to Landlord a written objection thereto within
five (5) business days after receipt thereof. If Tenant properly exercises its
option to extend, Landlord and Tenant shall execute an amendment to the Lease
(or, at Landlord's option, a new lease on the form then in use for the Building)
reflecting the terms arid conditions of the Extension Term.

         B. Market Rent Adjustment. The Minimum Annual Rent for the Extension
Term shall be an amount equal to the Minimum Annual Rent then being quoted by
Landlord to prospective new tenants of the Building for space of comparable size
and quality and with similar or equivalent improvements as are found in the
Building, and if none, then in similar buildings in the vicinity, excluding free
rent and other concessions; provided. however, that in no event shall the
Minimum Annual Rent during the Extension Term be less than the highest Minimum
Annual Rent payable during the 0riginalTerm. The Minimum Monthly Rent shall be
an amount equal to one-twelfth (I/12) of the Minimum Annual Rent for the
Extension Term and shall be paid at the same time and in the same manner as
provided in the Lease.

<PAGE>

         Section 16.12. Option to Terminate. Provided Tenant is not in default
hereunder, Tenant shall have the option to terminate this Lease effective on
October 31, 2000. Such option shall be exercised by (i) Tenant's giving written
notice to Landlord of its intention to terminate on or before May 1, 2000, and
(ii) Tenant's payment to Landlord of an amount equal to XXXX Dollars ($XXX),
which payment shall accompany the notice provided in (i) above. Such payment is
trade in consideration for Landlord's grant of this option to terminate, to
compensate Landlord for rental and other concessions given to Tenant, and for
other good and valuable consideration. Such payment shall not in any manner
affect Tenant's obligations to pay Minimum Annual Rent and Additional Rent or to
perform its obligations under the Lease up to and including the date of
termination. Failure to timely and properly exercise this option shall forever
waive and extinguish it. If such option is validly exercised, then upon such
termination, Tenant shall surrender the Leased Premises to Landlord in
accordance with the terms of this Lease and each party shall be released from
further liability hereunder; provided, however, that such termination shall not
affect any right or obligation arising prior to termination or which survives
termination of the Lease.

         Section 16.13. Ongoing Option to Terminate. Provided Tenant is not in
default hereunder and provided Tenant enters into an agreement with Landlord to
expand its business operations in another building which is owned by Landlord,
Tenant shall have the option to terminate this Lease effective as of the
commencement of rent under the new lease. If such option is validly exercised,
then upon such termination, Tenant shall surrender the leased Premises to
Landlord in accordance with the terms of this Lease and each party shall be
released from further liability hereunder; provided, however, that such
termination shall not affect any right or obligation arising prior to
termination or which survives termination of the Lease. Landlord hereby agrees
to use commercially reasonable efforts to accommodate Tenant's expansion needs
by locating space in another building owned by Landlord, if available.

         Section 16.14. Contingency. This Lease is contingent upon Landlord
entering into a lease termination agreement for the Leased Premises with Tenant.
In the event this contingency is not satisfied, upon written notice from
Landlord, this Lease shall be void and of no further force or effect.

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

                           LANDLORD:
                           DUKE REALTY MINNESOTA, LLC,
                           Minnesota limited liability company

                           By:               _
                                             Robert H. Johnson
                                             Chief Manager

                           TENANT:
                           CHRONIMED, INC., a Minnesota corporation

<PAGE>

                           By:

                           Printed:

                           Title:

STATE OF
                           SS:
COUNTY OF

         Before me, a Notary Public in and for said County and State, personally
appeared ________________________, by me known and by me known to be the
________________ of Chronimed, Inc., a Minnesota corporation, who acknowledged
the execution of the above and foregoing Lease Agreement for and on behalf of
said corporation.

WITNESS my hand and Notarial Seal this 12TH day of , October, 1998

                                                     Notary Public

                                                     (Printed Signature)
My Commission Expires: 1/31/2000

My County of Residence:  Ramsey

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