Document:

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                                                                   EXHIBIT 10.15

I.    LEASE OF THE PREMISES.................................................1

II.   LEASE TERM............................................................1

III.  BASE RENT ............................................................1

IV.   COMMON COSTS AS ADDITIONAL RENT.......................................2
 A.   Taxes and Assessments.................................................2
 B.   CAM Charges...........................................................3
 C.   Estimated Payments....................................................3
 D.   Multiple Tenants - Proration of Taxes, Insurance, and CAM Charges.....4
 E.   Late Charges..........................................................4
  1.  Landlord May Incur Unanticipated Costs................................4
  2.  Tenant Owes Late Charge...............................................4
  3.  Late Charge is Fair Estimate..........................................4
  4.  If Tenant's Check Returned............................................4
  5.  Charges Become "Additional Rent"......................................4
  6.  Application of Money From Tenant......................................4
  7.  Payment by Landlord on Tenant's Behalf and Associated Charges.........4
  8.  Landlord May Pursue Other Remedies....................................5
  9.  Landlord May Require Advance Quarterly Payment........................5

V.    SECURITY PROVISION....................................................5

VI.   INSURANCE.............................................................6
  A.  Property Insurance....................................................6
  B.  Liability Insurance...................................................6
  C.  Form, Amount and Coverage, Etc........................................6
  D.  Increase in Insurance Premium.........................................6
  E.  Accidents.............................................................6
  F.  Payment By Landlord...................................................6
  G.  Waivers of Claims/Subrogation.........................................6

VII.  USE...................................................................7
  A.  Use...................................................................7
  B.  Use of Common Areas...................................................7
  C.  Management and Operation of Common Areas..............................7

VIII. DEFAULT...............................................................7

IX.   LANDLORD'S REMEDIES FOR TENANT'S DEFAULT..............................8

X.    MISCELLANEOUS DEFAULT PROVISIONS......................................9

XI.   ASSIGNMENT AND SUBLETTING............................................10

XII.  HAZARDOUS SUBSTANCES.................................................10

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XIII. ALTERATIONS..........................................................11
  A.  Changes, Alterations and Additional Construction.....................11
  B.  Manner of Construction...............................................12
  C.  Title to Alterations.................................................12

XIV.  SURRENDER............................................................12
  A.  Delivery of Possession...............................................12
  B.  Holding Over.........................................................13
  C.  Removal of Personal Property.........................................13
  D.  Retention of Personal Property.......................................13

XV.   RIGHT TO MORTGAGE....................................................13

XVI.  ESTOPPEL CERTIFICATES................................................13

XVII. MAINTENANCE AND REPAIRS..............................................14
  A.  Utilities............................................................14
  B.  Cleaning and Upkeep..................................................14
  C.  Grounds Maintenance..................................................14
  D.  Snowplowing..........................................................14
  E.  Landlord's Right of Entry............................................14
  F.  Repairs by Landlord..................................................14
  G.  Repairs by Tenant....................................................14
  H.  Liens................................................................15

XVIII. DAMAGE OR DESTRUCTION...............................................16

XIX.  CONDEMNATION.........................................................17
  A.  Total Taking.........................................................17
  B.  Award on Total Taking................................................17
  C.  Partial Taking.......................................................17
  D.  Reconstruction.......................................................17
  E.  Award on Partial Taking..............................................18
  F.  Temporary Taking.....................................................18
  G.  Settlement Agreement.................................................18
  H.  Abatement in Basic Rent..............................................18

XX.   LIABILITY; INDEMNIFICATION OF LANDLORD AND TENANT....................18
  A.  Damage in General....................................................18
  B.  Indemnification of Landlord..........................................18
  C.  Indemnification of Tenant............................................19

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XXI.  MISCELLANEOUS PROVISIONS.............................................19
  A.  Governing Law........................................................19
  B.  References...........................................................19
  C.  Binding Effect.......................................................19
  D.  Entire Agreement.....................................................19
  E.  Enforceability of Provisions.........................................20
  F.  Remedies Not Exclusive...............................................20
  G.  Consequential and Indirect Damages...................................20
  H.  Re-Leasing...........................................................20
  I.  Advertising and Signs................................................20
  J.  Quiet Enjoyment......................................................20
  K.  Sale by Landlord.....................................................20
  L.  Limitation of Liability..............................................21
  M.  Authority............................................................21
  N.  No Liability for Curtailment, Etc., of Services......................21
  O.  Survival.............................................................21
  P.  Notices..............................................................21

GUARANTOR PAGE.............................................................22

EXHIBIT A - Hazardous and Toxic Materials...................................1

EXHIBIT B - Rules and Regulations...........................................1
  1.  Control of Common Areas...............................................1
  2.  Observance of Rules ..................................................1
  3.  No Obstruction .......................................................1
  4.  Security of Premises .................................................1
  5.  Locks.................................................................1
  6.  No Soliciting.........................................................1
  7.  No Advertising........................................................1
  8.  Proper Use of Facilities..............................................1
  9.  Load Limits on Floors.................................................1
  10. Machinery and Equipment...............................................1
  11. Moving of Equipment ..................................................2
  12. Replacement of Broken Glass...........................................2
  13. No Hazardous Materials................................................2
  14. Good Houskeeping......................................................2
  15. Landlord Not Liable...................................................2
  16. Modifications to Rules and Regulations................................2
  17. Drives and Parking Areas..............................................2
  18. Storage and Loading Areas.............................................2
  19. Contractors and Service Maintenance...................................2
  20. Lodging...............................................................2
  21. Exterior Installations................................................2
  22. Waivers...............................................................3
  23. Additions to Lease....................................................3
  24. Access to Roof........................................................3

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  25. Sales From Premises...................................................3

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                                      LEASE

THIS LEASE is made effective as of July 22, 1998, between DART CONTAINER
CORPORATION OF MICHlGAN, a Michigan corporation with offices at 500 Hogsback
Road, Mason, Michigan 48854 ("Landlord"), and GENOMIC SOLUTIONS, INC., a
Delaware corporation, currently located at 4355 Varsity Drive, Ann Arbor,
Michigan 48108 ("Tenant").

I.  LEASE OF THE PREMISES. Landlord, in consideration of the rents to be paid
and the covenants and agreements to be performed by Tenant hereby leases to
Tenant for the Term set forth below, the following described property (the
"Premises"), located in Oakwood Executive Park (the "Park"):

         Lot 4, Suite A, Oakwood Executive Park, according to the Plat
         thereof recorded at Liber 50, Page 38 of Plats, Ingham County
         Records, and commonly known as 3120 Sovereign Drive, Suite A,
         Lansing, Michigan.

Tenant shall be entitled to park in common with other tenants. Tenant will be
allowed thirty (30) assigned parking spaces within the Park, immediately
adjacent to the Premises and signage shall be placed by Landlord at the
entryway(s) to the parking area indicating that such parking spaces are for
Tenant's use only.

Tenant hereby hires the Premises for the Lease Term and covenants to pay, or
cause to be paid, to Landlord, at the dates and times set forth herein, the
entire Rent.

II.  LEASE TERM. The term of this Lease ("Lease Term") shall commence on the
     22nd day of July, 1998 ("Commencement Date"), which shall be the later of
     the date that the Certificate of Occupancy is issued by the appropriate
     municipal authority or the date which has been agreed to by Landlord and
     Tenant. Unless terminated earlier in accordance with the terms of this
     Lease, this Lease shall terminate on July 21, 2003 ("Termination Date").

III. BASE RENT. During the Lease Term, Tenant shall pay annual Base Rent and all
other rent due and owing by Tenant under this Lease ("Additional Rent") to
Landlord at such place as Landlord shall from time to time designate in
writing. Annual Base Rent will be payable in equal monthly installments, as
follows:

<TABLE>
<CAPTION>

        Lease Year         Annual Base Rent               Monthly Installment
        ----------         ----------------               -------------------
            <S>               <C>                              <C>
            1                 $77,000.04                       $6,416.67
            2                  80,520.00                        6,710.00
            3                  84,036.00                        7,003.00
            4                  87,890.04                        7,324.17
            5                  91,850.04                        7,654.17
</TABLE>

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If Tenant has not been in default under the terms of this Lease, Tenant shall
have a one-time option to renew the Lease for an additional five (5) year term.
Tenant must notify Landlord in writing of its intent to renew the Lease at least
three (3) months before the Termination Date set forth above, or the Lease shall
terminate on such Termination Date. The Annual Base Rent for the extended Lease
Term will be payable in equal monthly installments, as follows:

<TABLE>

                   <S>           <C>                         <C>
                   6             $95,983.29                  $7,998.61
                   7             100,302.54                   8,358.54
                   8             104,816.15                   8,734.68
                   9             109,532.88                   9,127.74
                   10            114,461.86                   9,538.49
</TABLE>

     A.  All Monthly installments of Base Rent shall be payable to Landlord in
         advance on the first day of each month during the Lease Term without
         notice, demand, deduction or set off, except as expressly set forth
         herein. Tenant shall pay the first month's installment of Base Rent on
         the date of Tenant's execution of this Lease.

     B.  As used in this Lease, the term "Rent" shall include all amounts
         payable pursuant to this Lease and all other additional charges or sums
         payable to Landlord hereunder. All Rent due and owing by Tenant under
         this Lease shall be paid by Tenant to Landlord without deduction, set
         off or abatement.

     C.  Tenant's obligation to pay Base Rent, Additional Rent, and all other
         charges due and owing by Tenant under this Lease shall survive the
         expiration or earlier termination of this Lease.

     D.  Right of First Refusal. Tenant shall have the right of first refusal to
         lease the adjacent premises known as Lot 4, Suite B, Oakwood Executive
         Park, provided Tenant has not been in default of any provision of the
         Lease.

IV.  COMMON COSTS AS ADDITIONAL RENT.

     A.  TAXES AND ASSESSMENTS. Tenant shall be responsible for and agrees to
         pay directly to Landlord its prorata share as Additional Rent all ad
         valorem real property taxes and assessments which may be levied or
         assessed by any lawful authority during each calendar year during the
         term of this Lease against the Premises or any part thereof
         (hereinafter referred to as the "Taxes"). Taxes shall also include all
         taxes, levies and charges which may be assessed, levied or imposed in
         replacement of or in addition to all or any part of real property taxes
         as revenue sources, and which in whole or in part are measured or
         calculated by or based upon the Premises, the freehold estate of the
         Landlord in and to the Premises, the leasehold estate of the Tenant
         created herein, or the rent and other charges payable hereunder. In
         no event shall Tenant be obligated to pay any income taxes, Single
         Business Tax, inheritance, estate, gift, transfer taxes, penalties and
         interest of Landlord. Landlord currently represents that there are no
         special assessments on the Property. Should any special assessment be
         incurred, Tenant shall be responsible only for its prorata share of
         installments due during the Lease Term.

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         Taxes shall be computed by adding all taxes levied against the Premises
         during the calendar year regardless of the tax bill's stated period of
         coverage. Tenant will be billed its respective share thereof either for
         the entire year or its prorata share of any partial year in which
         Tenant occupies the Premises. As an accommodation and not a condition
         of this Lease, Landlord will provide Tenant with a copy of the tax bill
         after it has been paid.

     B.  CAM Charges. During the Lease Term, Tenant shall pay to Landlord, as
         Additional Rent, Tenant's prorata share of all reasonable common area
         electrical, grounds maintenance, security services (if any) and other
         common area charges and expenses (the "CAM Charges"), as provided
         below. The term "grounds maintenance" shall include, without
         limitation, all landscaping, planting, lawn and grounds care, all
         maintenance of and improvements to the grounds and other common areas
         adjacent to the Premises and to all sidewalks, driveways, loading
         areas, parking areas, and all snow and trash removal. Current monthly
         estimated CAM Charges, based on fifty-four and 3/10 percent (54.30%) of
         building occupancy, are One Thousand Six Hundred Forty Dollars
         ($1,640.00).

     C.  Estimated Payments. Prior to the Commencement Date and prior to January
         1 of each calendar year during the Lease Term, or as soon as possible
         thereafter, Landlord shall deliver to Tenant an estimate of: (1) the
         total Taxes assessed for that calendar year (the "Tax Estimate"); (2)
         the total Insurance rates for that calendar year (the "Insurance
         Estimate"); and (3) the total CAM Charges for that calendar year (the
         "CAM Estimate"). (The Tax Estimate, the Insurance Estimate and the CAM
         Estimate are sometimes referred to hereinafter collectively as the
         "Common Cost Estimates".) In addition, at that time, Landlord shall
         provide Tenant with a statement of Tenant's estimated prorata share of
         the foregoing charges due pursuant to subsections (A) and (B) above and
         subject to the proration described in subsection (D) below and any
         proration due as a result of an incomplete calendar year at the
         commencement or end of the Lease Term. Tenant shall thereafter during
         that calendar year pay to Landlord one-twelfth (1/12) of the amount of
         Tenant's Share of the Common Cost Estimates at the same time its
         monthly installments of Base Rent hereunder are due and payable. In the
         event Landlord shall not have furnished the Common Cost Estimates to
         Tenant by January 1 of any calendar year, then until the first day of
         the month following the month in which the Common Cost Estimates are
         furnished to Tenant, Tenant shall continue to pay to Landlord on the
         first day of each calendar month its share of the Common Cost Estimates
         based on the previous year's estimate. At such time as Landlord
         furnishes the Common Cost Estimates to Tenant, Landlord shall give
         Tenant notice stating whether the aggregate amount of the installments
         of Tenant's Share of Tax Increase, Insurance Increase and CAM Charges
         previously paid for such calendar year is more or less than the
         aggregate amount of the installments due for such portion of the
         calendar year as computed in accordance with the Common Cost Estimates,
         and (1) if there shall be a deficiency, then within thirty (30) days
         after the Tenant receives the Common Cost Estimates, Tenant shall pay
         the amount of such deficiency, (2) if there shall have been an
         overpayment, Landlord shall credit Tenant in the amount thereof toward
         the subsequent installments of the Tax Increase, Insurance Increase and
         CAM Charges, and (3) on the first day of the first month next following
         the month in which the Common Cost Estimates are furnished to Tenant,
         and monthly thereafter for the balance of such calendar year, Tenant
         shall pay to Landlord one-twelfth (1/12) of the amount of Tenant's
         Share of the Tax Increase, Insurance Increase and CAM Charges as set
         forth in the Common Cost Estimates. Tenant's right to contest CAM
         Charges shall be limited to six months from

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         date of notification by Landlord. In the event Tenant contests any
         applicable charges, Landlord shall make all relevant books and records
         available for audit by Tenant upon request.

     D.  MULTIPLE TENANTS - PRORATION OF TAXES, INSURANCE, AND CAM CHARGES. Real
         estate taxes, property insurance and CAM Charges shall be prorated
         based upon the square footage occupied by each tenant in relationship
         to the total square footage of the Premises, including each tenant's
         prorata share of common areas. Tenant's prorata share is fifty-four and
         3/10 percent (54.30%).

     E.  LATE CHARGES.

         1.   LANDLORD MAY INCUR UNANTICIPATED COSTS. Tenant's failure to pay
              Rent, Additional Rent, or any other Lease costs when due under
              this Lease may cause Landlord to incur unanticipated costs. The
              exact amount of such costs are impractical or extremely difficult,
              to ascertain. Such costs may include, but are not limited to,
              processing and accounting charges and late charges that may be
              imposed on Landlord by any ground lease, mortgage, or other lien
              encumbering the Park

         2.   TENANT OWES LATE CHARGE. Therefore, if Landlord does not receive
              the Rent, Additional Rent, or any other Lease costs in full on or
              before the third (3rd) business day of the month it becomes due,
              Tenant shall pay Landlord a late charge, which shall constitute
              liquidated damages, equal to here Hundred Twenty-Five Dollars
              ($325.00) ("Late Charge"), which shall be paid to Landlord
              together with such Rent, Additional Rent, or other Lease costs
              then in arrears.

         3.   LATE CHARGE IS FAIR ESTIMATE. The parties agree that such Late
              Charge represents a fair and reasonable estimate of the cost
              Landlord will incur by reason of such late payment.

         4.   IF TENANT'S CHECK RETURNED. For each Tenant payment check to
              Landlord that is returned by a bank for any reason, Tenant shall
              pay both a Late Charge (if applicable) and a Returned Check Charge
              or such amount as shall be customarily charged by Landlord's bank
              at the time.

         5.   CHARGES BECOME "ADDITIONAL RENT". All Late Charges and any
              Returned Check Charge shall then become Additional Rent and shall
              be due and payable immediately, along with such other Rent,
              Additional Rent, or other Lease costs then in arrears.

         6.   APPLICATION OF MONEY FROM TENANT. Money paid by Tenant to Landlord
              shall be applied to Tenant's account in the following order: (a)
              to any unpaid Additional Rent, including, without limitation, Late
              Charges, Returned Check Charges, legal fees and/or court costs
              legally chargeable to Tenant, and Operating/CAM Charges; and then
              (b) to unpaid Base Rent.

         7.   PAYMENT BY LANDLORD ON TENANT'S BEHALF AND ASSOCIATED CHARGES. If
              Tenant fails to make any payment or expenditure required to be
              paid by it under the terms of the Lease, Landlord may, at its
              option, make such payment or expenditure on behalf of Tenant. In
              that event, the amount of any such payment or expenditure together
              with interest at the rate

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              of ten percent (10%) per annum from due date forward, shall be
              immediately due and payable to Landlord as Additional Rent.

         8.   LANDLORD MAY PURSUE OTHER REMEDIES. Nothing herein contained shall
              be construed so as to compel Landlord to accept any payment of
              Rent, Additional Rent, or other Lease costs in arrears or Late
              Charge or Returned Check Charge should Landlord elect to apply its
              rights and remedies available under this Lease or at law or equity
              in the event of default hereunder by Tenant. Landlord's acceptance
              of Rent, Additional Rent, or other Lease costs in arrears or Late
              Charge or Returned Check Charge pursuant to this Clause shall not
              constitute a waiver of Landlord's rights and remedies available
              under this Lease or at law or equity.

         9.   LANDLORD MAY REQUIRE ADVANCE QUARTERLY PAYMENT. If Rent due
              hereunder shall be late for three (3) consecutive months, then
              Landlord shall have the option to require that the Base Rent due
              shall be paid quarterly, in advance.

V.   SECURITY PROVISION. Landlord acknowledges the receipt of Fifteen Thousand
Dollars ($15,000.00), which it is to retain as security for Tenant's faithful
performance of all the covenants, conditions, and agreements of the Lease.

But in no event shall Landlord be obligated to apply the security upon rents or
other charges in arrears or upon damages for Tenant's failure to perform its
obligations. Landlord, at its sole discretion, may elect to apply the security
to any delinquent amount owed by Tenant and shall give Tenant notice of the
fact. Landlord's right to possession of the Premises for nonpayment of rent or
for any other reason shall not be affected by reason of the fact that Landlord
holds this security.

The security, if not applied toward the payment of rent in arrears or toward the
payment of damages suffered by Landlord by reason of Tenant's default under the
Lease, is to be returned to Tenant at the expiration of the Term of the Lease
provided Tenant is not in default of any provision of the Lease. In no event is
the security to be returned until Tenant has vacated the Premises and delivered
possession of same in an acceptable condition to Landlord.

If Landlord so uses or applies all or any portion of the security, Tenant shall
deposit sufficient cash with the Landlord to restore the security to the full
amount within fifteen (15) days after written demand therefor, and failure to do
so shall be a material and immediate breach of this Lease.

In the event of the sale or other transfer of the Building and/or Property,
Landlord to transfer the security to such purchaser or Transferee, and Landlord
shall thereupon be released by Tenant from all liability for return of such
security. Tenant covenants that it will not assign or encumber or attempt to
assign or encumber the monies deposited herein as security. As an accommodation
and not a condition of this Lease, Landlord will provide Tenant with notice of
the sale of the Building and/or Property.

In the event that Landlord repossesses the Premises because of Tenant's default,
Landlord may apply the security to all damages suffered to the date of
repossession and may retain the security to apply to such damages as may be
suffered or shall accrue thereafter by reason of Tenant's default or breach.
Landlord shall not be obligated to keep the security as a separate fund but may
mix the security with its own funds.

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VI.  INSURANCE.

     A.  PROPERTY INSURANCE. During the term of the Lease, Landlord, on behalf
         of Tenant, shall keep the Premises insured with Broad Form fire and
         extended coverage insurance in an amount not less than $540,000.00 for
         the suite based on a value of $980,000.00 for the entire building, as
         determined annually. Landlord will bill Tenant monthly, as Additional
         Rent, one-twelfth (1/12) of the annual insurance premium for the
         Premises. Landlord at its expense will maintain liability insurance on
         the Common Areas of the Park.

     B.  LIABILITY INSURANCE. Tenant, at Tenant's sole cost and expense, shall
         maintain comprehensive public liability insurance against any claims
         for bodily injury, death, or property damage, occurring on, in or
         about the Premises, and against contractual liability for such claims,
         such insurance to afford minimum protection in the amount of One
         Million Dollars ($1,000,000.00) or in such higher amount as Landlord
         may deem reasonably necessary. Landlord and any mortgagee of the
         Premises designated by Landlord shall be named as co-insured or
         additional insured parties under all such policies. Tenant may provide
         public liability insurance under a blanket policy or policies which
         cover other properties in addition to the Premises. Tenant shall
         provide Landlord with an Evidence of Insurance form (ACORD27) or, in
         the alternative and at Landlord's sole discretion, Landlord may require
         Tenant to provide a true copy of the actual liability insurance policy.

     C.  FORM, AMOUNT AND COVERAGE, ETC. The form, amount, and coverage of each
         policy of insurance which Tenant is required to maintain shall be
         subject to Landlord's approval, which shall not be unreasonably
         withheld. Tenant shall not permit any condition to exist on the
         Premises and shall not commit any act or omission which would wholly or
         partially invalidate any insurance.

     D.  INCREASE IN INSURANCE PREMIUMS. If anything done, omitted to be done,
         or allowed by Tenant to be kept on the Premises shall cause the rate of
         fire or other insurance on the Premises, or on other property of
         Landlord or of other Tenants in the Park, to be increased beyond the
         minimum rate from time to time applicable to the Premises or such other
         property, Tenant shall pay, as Additional Rent, the amount of any such
         increase upon Landlord's demand.

     E.  ACCIDENTS. Upon the occurrence of any accident, injury, or personal
         property casualty in or about the Premises, Tenant shall give immediate
         notice thereof to Landlord, and shall provide Landlord with evidence
         that any liability of Landlord relating thereto is covered by the
         insurance which Tenant is required by this Lease to carry.

     F.  PAYMENT BY LANDLORD. Tenant shall deliver copies of all required
         policies to Landlord. If Tenant fails to maintain the insurance
         coverage required under this section, Landlord may, at its option, pay
         the cost of maintaining the required insurance, which shall be
         Additional Rent due and payable immediately upon demand.

     G.  WAIVERS OF CLAIMS/SUBROGATION. Landlord and Tenant hereby waive all
         rights of action against the other for any loss, cost, damage, or
         expense resulting from fire, explosion, or any other casualty or
         occurrence incurred by either, which loss, cost, damage, or expense is
         then covered in whole or in part by insurance maintained or required to
         be maintained pursuant to

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          this Lease, and each party waives any right of subrogation that might
          otherwise exist in or accrue to any person or account thereof.

      H.  If Tenant can procure like type insurance at a lower cost from a
          company which has the same rating as Landlord's insurance, Landlord
          will give Tenant a rent credit equal to the savings. Proof of such
          insurance shall be the same as required in Section VI(B).

VII.  USE.

      A.  USE. The Premises shall be used for laboratory, warehouse, production,
          light assembly, light manufacturing, and office purposes only. Tenant
          shall not permit any liens to attach or exist as against the Premises
          or the Park, nor commit any waste. The Premises shall not be used for
          any illegal purposes, nor in any manner shall Tenant allow, suffer,
          or permit any vibration, noise, odor, light or other effect that could
          constitute a nuisance or trespass for Landlord or any other tenant,
          their customers, agents, or invitees. Upon notice by Landlord to
          Tenant that any of the aforesaid is occurring, Tenant agrees to
          immediately remove or control the same.

      B.  USE OF COMMON AREAS. Landlord grants to Tenant and its agents,
          employees and customers a non-exclusive license to use the Common
          Areas in common with others during the Lease and, subject to the
          exclusive control and management thereof at all times by Landlord.

      C.  MANAGEMENT AND OPERATION OF COMMON AREAS. Landlord Will operate and
          maintain or will cause to be operated and maintained the Common Areas
          in a manner deemed by Landlord to be reasonable and appropriate and in
          the best interests of the Park, as per the Lease. Landlord will have
          the right: (1) to establish, modify, and enforce reasonable rules and
          regulations with respect to the Common Areas; (2) to enter into,
          modify, and terminate easements and other Common Areas; (3) to close
          temporarily any or all portions of the Common Areas; and (4) to do any
          or perform such other acts in and to said areas and improvements as,
          in the exercise of good business judgment, Landlord shall determine to
          be advisable. A copy of the current Rules and Regulations is attached
          as Exhibit B and made a part of this Lease.

VIII. DEFAULT. The following shall constitute Events of Default under this
Lease.

      A.  Failure of Tenant to pay Rent or Additional Rent or any other charges
          payable hereunder within ten (10) days after the due date for such
          payment.

      B.  Failure of Tenant to perform any of the other terms, conditions or
          covenants of this Lease to be observed or performed by Tenant for a
          period of more than thirty (30) days after written notice of such
          failure is mailed to Tenant.

          However, if a non-monetary default cannot reasonably be cured within
          thirty (30) days, no default shall take place if Tenant begins to cure
          said default within the thirty (30) days and diligently prosecutes
          said cure to completion within an agreed upon time as set forth in
          writing by Landlord and Tenant.

      C.  Filing Of a voluntary petition in bankruptcy or being filed against is
          an Event of Default.

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     E.  If Tenant makes an assignment for the benefit of creditors or enters
         into an arrangement with creditors.

For the purposes of the Events of Default specified in this Section, the word
"Tenant" shall include, without limitation: (1) any party comprising Tenant,
should more than one person or entity execute this Lease as Tenant, or any
general partner or joint venturer of Tenant or any such party; and (2) any
person or entity now or hereafter liable, whether primarily, secondarily or
continently, for the performance of the duties and obligations of Tenant under
this Lease, including without limitation any principal, maker, endorser,
guarantor, or surety.

IX.  LANDLORD'S REMEDIES FOR TENANT'S DEFAULT. If any Event of Default shall
have occurred and shall be continuing beyond those periods of time herein
granted to cure the same, then Landlord shall have all of the following rights
and remedies:

     A.  Landlord may, by notice to Tenant, accelerate all Basic Rent due
         hereunder and otherwise payable in installments over the remainder of
         the Lease Term, and, at Landlord's option, Additional Rent to the
         extent that Additional Rent can be determined and calculated to a fixed
         sum; and the amount of accelerated Rent shall be due and payable to
         Landlord upon Landlord's demand. Additional Rent which has not been
         included, in whole or in part, in accelerated Rent shall be due and
         payable by Tenant during the remainder of the Lease Term, in the
         amounts and at the times otherwise provided for in this Lease.

     B.  Landlord may, at Landlord's option, with judicial process, enter upon
         the Premises and remove Tenant and any and all other persons therefrom
         and take and retain possession thereof and of any and all goods,
         inventory, equipment, fixtures, and all other personal property of
         Tenant situated in the Premises without liability for trespass or
         conversion, and may sell all or any part thereof at public or private
         sale. Tenant agrees that five (5) days' prior notice of any public or
         private sale shall constitute reasonable notice. The proceeds of any
         such sale shall be applied, first, to the payment of all costs and
         expenses of conducting the sale or caring for or storing said property,
         including all attorneys' fees; second, toward the payment of any
         indebtedness, including (without limitation) indebtedness for Rent,
         which may be or may become due from Tenant to Landlord; and third, to
         pay the Tenant, on demand in writing, any surplus remaining after all
         indebtedness of Tenant to Landlord has been fully paid.

     C.  Landlord from time to time may re-let the Premises, or any part
         thereof, for such term or terms and on such conditions as Landlord, in
         its sole discretion, may determine, and Tenant shall be liable to
         Landlord for the difference between the amount of Rent and Additional
         Rent payable hereunder and the net proceeds of such re-letting. In
         computing the amount of such difference there shall be added thereto
         such reasonable expenses as Landlord may have incurred in connection
         with. such re-letting, including without limitation reasonable
         attorneys' fees, brokerage commissions, and expenses for keeping the
         Premises in good order and for preparing them for re-letting.

     D.  Landlord may give Tenant notice of Landlord's intention to terminate
         this Lease on a date specified in such notice, on which date this lease
         shall terminate. If landlord shall so elect to terminate this Lease,
         then Landlord shall be entitled to recover from Tenant, in addition to
         all accrued Rent and other sums due from Tenant as of such termination
         date, damages in an amount equal to: (1) the amount of Rent reserved
         for the balance of the Lease Term, less the

                                      8
<PAGE>   13

         fair rental value of the Premises for the balance of the Lease Term,
         plus (2) all costs and expenses incurred by Landlord in securing
         possession from Tenant, in restoring the Premises to the condition in
         which Tenant is herein obligated to surrender same to Landlord, in
         preparing to re-let the Premises, in maintaining and safeguarding the
         Premises in attempting to re-let the Premises, and in recovering said
         damages from Tenant, which costs and expenses shall include, without
         limitation, attorneys' fees and expenses, costs of security services,
         costs of storing or disposing of property left upon the Premises and
         cleaning and restoration costs: No act or proceeding done or undertaken
         by Landlord with respect to an Event of Default shall constitute a
         termination of this Lease by Landlord unless and until Landlord shall
         give to Tenant the termination notice specified in the first sentence
         of this Subsection D.

     E.  If Tenant is in monetary default twice in any six (6) month period,
         Landlord shall have the right to demand automatic wire transfer of Rent
         from Tenant's account.

         Landlord's pursuit of any one or more of the remedies provided in this
         Lease shall not constitute an election of remedies excluding the
         election of another remedy or other remedies, or a forfeiture or waiver
         of any rent or other amounts payable under this Lease by Tenant or of
         any damages or other sums accruing to Landlord by reason of Tenant's
         violation of any provision of this Lease. No action taken by or on
         behalf of Landlord shall be construed to mean acceptance of a surrender
         of this Lease. No failure of Landlord to pursue or exercise any of
         Landlord's powers, rights or remedies or to insist upon strict and
         exact compliance by Tenant with any provision of this Lease, and no
         custom or practice at variance with the terms of this Lease, shall
         constitute a waiver by Landlord of the right to demand strict and exact
         compliance with the terms and conditions of this Lease.

X.   MISCELLANEOUS DEFAULT PROVISIONS. The right to enforce all of the
provisions of this Lease may, at the option of any assignee of Landlord's rights
in this Lease, be exercised by any such assignee.

     A.  Any notation or statement by Tenant on any draft, check, or other
         method of payment of any obligation hereunder, or in any writing
         accompanying or accomplishing such payment, which notation or statement
         purports to impose conditions on such payment or to invoke the doctrine
         of accord and satisfaction, shall be absolutely void and of no effect,
         and may be ignored by Landlord.

     B.  No right or remedy herein conferred upon or reserved to Landlord is
         intended to be exclusive of any other right or remedy, and every right
         and remedy shall be cumulative and in addition to any other right or
         remedy given hereunder or now or hereafter existing at law or in
         equity. Landlord shall be entitled to injunctive relief in case of the
         violation, or attempted or threatened violation, of any covenant,
         agreement, condition or provision of this Lease and to a decree
         compelling performance of any covenant, agreement, condition or
         provision of this Lease, or to any other remedy allowed by law or in
         equity.

     C.  No failure by a party hereto to insist upon the strict performance of
         any covenant, agreement, term or condition of this Lease on the part of
         the other party to be performed, or to exercise any permitted right or
         remedy consequent upon a default therein, and no acceptance of the
         other party's performance or, in the case of Landlord, of Tenant's
         payment of full or partial Rent after such default, shall constitute a
         waiver by the party not in default of such default or

                                        9
<PAGE>   14

         of such covenant, agreement, term or condition, or any right or remedy
         of the party not in default with respect thereto.

XI.  ASSIGNMENT AND SUBLETTING. Tenant shall not, directly or indirectly,
without the prior written consent of Landlord, which shall not be unreasonably
withheld, sell, assign, hypothecate or otherwise transfer this Lease or any
interest hereunder, or sublet the Premises or any part thereof, or permit the
use of the Premises by any party other than Tenant. Consent to any assignment or
sublease shall not be deemed a waiver of the right of Landlord to disapprove any
further assignment or subletting. Not withstanding any permitted assignment or
subletting, Tenant shall remain liable for the full and complete performance,
satisfaction and compliance with each and every agreement, term, covenant,
condition, requirement, provision and restriction of this Lease, as principal
and not as surety or guarantor, and as if no such assignment or subletting had
been made.

Landlord is expressly given the night to assign any or all of its interest in
the Premises or this Lease. Landlord shall give written notification to Tenant
promptly after any such assignment.

XII. HAZARDOUS SUBSTANCES. The term "Hazardous Substances," as used in this
Lease, shall mean pollutants, contaminants, toxic or hazardous wastes, or any
other substances, the removal of which is required or the use of which is
restricted, prohibited or penalized by any "Environmental Law", which term shall
mean any existing or future federal, state, or local law or ordinance relating
to pollution or protection of the environment. Tenant hereby represents and
warrants and covenants with Landlord that:

     A.  Tenant has obtained and shall maintain in good standing all local,
         state and federal government licenses necessary in order to conduct its
         operations at the Premises;

     B.  No activity shall be conducted on the Premises by Tenant that will
         produce any Hazardous Substance, except for such activities that: (1)
         are part of the ordinary course of Tenant's business activities; (2)
         have been approved in advance by Landlord in writing; and (3) are
         conducted in accordance with all Environmental Laws (the "Permitted
         Activities");

     C.  The Premises shall not be used in any manner by Tenant for the storage
         of any Hazardous Substances except for the temporary storage of such
         materials that: (1) are used in the ordinary course of Tenant's
         business; (2) have been approved in advance by Landlord in writing; and
         (3) are properly stored in a manner and location meeting the
         requirements of all Environmental Laws (the "Permitted Materials"); and
         which are listed on Exhibit A attached to and made a part of this
         Lease.

     D.  No portion of the Premises shall be used by Tenant as a landfill or a
         dump;

     E.  Tenant shall not install any underground tanks of any type;

     F.  Tenant shall not cause any surface or subsurface conditions to exist or
         come into existence that constitute, or with the passage of time may
         constitute, a public or private nuisance;

                                       10
<PAGE>   15

      G.  Tenant shall not permit any Hazardous Substances to be brought onto
          the Premises, except for the Permitted Materials, and if so brought or
          found thereon, the same shall be immediately removed, with proper
          disposal, and all required cleanup procedures shall be diligently
          undertaken pursuant to all Environmental Laws at Tenant's sole
          expense.

The Tenant shall defend, indemnify, and hold harmless the Landlord, its
employees, agents, officers, directors, and shareholders from and against any
and all claims of every kind of nature, known or unknown, contingent or
otherwise, demands, criminal and civil penalties, fines, liabilities,
settlements, judgments, damages, costs or expenses, including without
limitation, actual reasonable attorneys' fees, consultants' fees, investigation
and laboratory fees, court costs and all litigation expenses, arising out of or
in any way related to: (1) the disposal, release or threatened release of any
Hazardous Materials caused by Tenant, on, over, under, from or affecting the
Premises or the soil, water, vegetation, buildings, personal property, persons,
or animals; (2) any personal injury (including wrongful death) or property
damage (real or personal) arising out of or in any way related to the release of
such Hazardous Materials on the Premises by Tenant; (3) any lawsuit brought or
threatened, settlement reached, or government order relating to the release of
such Hazardous Materials by Tenant with respect to the Premises; and/or (4) any
violation of Governmental Regulations which are based upon or in any way
related to the release of such Hazardous Materials by Tenant.

The Landlord shall defend, indemnify, and hold harmless the Tenant, its
employees, agents, officers, directors, and shareholders from and against any
and all claims of every kind of nature, known or unknown, contingent or
otherwise, demands, criminal and civil penalties, fines, liabilities,
settlements, judgments, damages, costs or expenses, including without
limitation, actual reasonable attorneys' fees, consultants' fees, investigation
and laboratory fees, court costs and all litigation expenses, arising out of or
in any way related to: (1) the, disposal, release or threatened release of any
Hazardous Materials caused by Landlord or any third party other than Tenant, on,
over, under, from or affecting the Premises or the soil, water, vegetation,
buildings, personal property, persons, or animals; (2) any personal injury
(including wrongful death) or property damage (real or personal) arising out of
or in any way related to the release of such Hazardous Materials on the Premises
by Landlord or any third party other than Tenant; (3) any lawsuit brought or
threatened, settlement reached, or government order relating to the release of
such Hazardous Materials by Landlord or any third party other than Tenant with
respect to the Premises; and/or (4) any violation of Governmental Regulations
which are based upon or in any way related to the release of such Hazardous
Materials by Landlord or any third party other than Tenant.

Landlord shall have the right, at any time, to inspect the Premises for
violations of this section.

XIII. ALTERATIONS.

      A.  Changes, Alterations and Additional Construction. Tenant, at its
          expense, shall be responsible for any and all other improvements to
          the Premises, including but not limited to those required for
          compliance with fire and building codes, the Americans with
          Disabilities Act (and any regulations implementing said Act), and any
          other applicable federal, state, or local law or regulation, provided
          such improvements are required on account of Tenant's activities on
          the Premises after Lease commencement. Tenant shall not construct any
          change, alteration, or addition in or to the Premises or the Park (any
          and all of the foregoing being sometimes herein collectively called an
          "Alteration") unless and until, in each instance, Tenant shall have
          submitted to Landlord plans, specifications and other materials for
          such Alteration as Landlord

                                       11
<PAGE>   16

          may request and Landlord shall have approved the same in writing,
          within thirty (30) days of receipt of same.

      B.  Manner of Construction. All Alterations which Landlord shall have
          approved shall be constructed by Tenant, without expense to Landlord,
          in a good, first class, and workmanlike manner, employing new
          materials of first class quality, and in compliance with the
          Landlord-approved plans and specifications therefor and all applicable
          permits, laws, ordinances and regulations and order, rules and
          regulations of the Board of Fire Insurance Underwriters or any other
          body exercising similar functions, and in compliance with the terms
          and conditions of this Lease.

      C.  Title to Alterations. Except to the extent otherwise expressly
          provided herein, upon the completion of construction of each
          Alteration, such Alteration shall automatically be deemed part of the
          Premises for purposes of this Lease. Notwithstanding the foregoing,
          upon any termination of this Lease or Tenant's right of possession of
          the Premises, prior to such expiration or termination, all such
          Alterations, or any parts or parts thereof designated by Landlord,
          shall be removed from the Premises and the Premises restored
          substantially to their condition immediately prior to the construction
          thereof, all at Tenant's expense. Notwithstanding the foregoing, upon
          any termination of this Lease or Tenant's right of possession of the
          Premises, any or all such Alterations, or any parts thereof, may be
          removed at Tenant's discretion, prior to such expiration or
          termination. In such events, at Tenant's expense, the Premises shall
          be restored to substantially the same condition immediately prior to
          the addition of the Alteration, reasonable wear and tear excepted.

XIV.  SURRENDER.

      A.  Delivery of Possession. Tenant shall, subject to condemnation and
          casualty on the Expiration Date of the Lease Term, or upon any earlier
          termination of this Lease, or upon any termination of Tenant's right
          to possess the Premises pursuant to the provisions of this Lease,
          surrender and deliver up the Premises into the possession and use of
          Landlord without fraud or delay and in the condition in which Tenant
          has herein agreed to maintain them, broom clean and free of all debris
          and hazardous or toxic materials caused by Tenant and not present on
          the Commencement Date, and free and clear of all lettings,
          occupancies, liens and encumbrances, created by or through Tenant.

                                       12
<PAGE>   17

     B.  Holding Over. If Tenant holds over in the Premises after the expiration
         of the Lease Term or any earlier termination of this Lease or of
         Tenant's right to possess the Premises in violation of the Lease, then
         at Landlord's option, and without limitation to any right or remedy of
         Landlord with respect to such holding over, such holding over shall
         create a tenancy from week-to-week only, subject to Tenant's obligation
         to pay Rent equal to one hundred twenty-five percent (125%) of the
         Basic Rent (prorated to a weekly basis) in effect immediately prior to
         such expiration or termination (as well as any Additional Rent), and
         subject to all the provisions and conditions of this Lease, other than
         provisions relating to length of Lease Term, which tenancy may be
         terminated at any time by Landlord giving notice thereof to Tenant.
         Landlord's acceptance of any such rental during the period of Tenant's
         holding over shall not waive or otherwise affect any claim or right
         which Landlord may have with respect to such holding over.

     C.  Removal of Personal Property. Any and all personal property, machinery,
         and equipment furnished or installed by or at the expense of Tenant
         which does not constitute part of the Premises shall be removed by
         Tenant and all damage to the Premises caused by such removal repaired
         by Tenant prior to the expiration or earlier termination of the Lease
         Term or the termination of Tenant's right to possess the Premises.

     D.  Retention of Personal Property. Any personal property, machinery, or
         equipment of Tenant which shall remain on the Premises after the
         expiration of the Lease Term or earlier termination of this Lease or
         Tenant's right to possess the Premises may, at the option of Landlord,
         be deemed to have been abandoned by Tenant and may be retained by
         Landlord as Landlord's property or be disposed of, without liability to
         Landlord, in such manner as Landlord may see fit, or Landlord, at its
         option, may require Tenant to remove the same at Tenant's expense. In
         case of such removal, all costs of removal and of repairing any damage
         to the Premises arising from such removal shall be paid by Tenant upon
         Landlord's demand. Tenant shall pay to Landlord on demand (1) a
         reasonable fee for storing and disposing of any such personal property,
         and (2) all costs and expenses incurred by Landlord in storing and
         disposing of any such personal property (including, without limitation,
         counsel fees relating to claims against Landlord by any and all parties
         claiming interests in such personal property).

XV.  RIGHT TO MORTGAGE. Landlord reserves the right to subject and subordinate
the Lease to the lien of any mortgage or security interest now or hereafter
placed upon Landlord's interest in all or any part of the Premises and upon the
land, buildings, and fixtures of which the Premises are a part or upon any
buildings hereafter placed upon the land of which the Premises form a part.
Tenant covenants and agrees to execute and deliver upon demand such further
instruments subordinating this Lease to the lien of any present or future
mortgage or security interest or other lien as shall be desired by Landlord.
Landlord currently represents there is no mortgage on the Property. Tenant shall
be required to subordinate to any future mortgage only if a Non-Disturbance
Agreement is provided to Tenant.

XVI. ESTOPPEL CERTIFICATES. The parties agree, at any time and from time to time
upon not less than ten (10) days' prior written notice, to the other party, to
execute, acknowledge and deliver to the other party a statement in writing
certifying: (1) that this Lease is unmodified and in full force and effect (or
if there have been modifications, that the same is in full force and effect as
modified and stating the modifications); (2) whether there are then existing any
offsets or defenses against the enforcement of any of the terms, covenants or
conditions hereof upon the part of Landlord or Tenant to be performed (and if
so, specifying the same); and (3) the dates to which the Rent and other charges
have been paid in advance, if

                                       13

<PAGE>   18

any, it being intended that any such statement delivered pursuant to this
Section may be relied upon by any prospective purchaser of the Premises.

XVII. MAINTENANCE AND REPAIRS.

      A.  Utilities. Tenant shall promptly pay all charges for utilities and
          other services furnished to the Premises by Landlord or the applicable
          utility company, including, but not limited to, gas, water,
          electricity, fuel, light and heat. In the event any utilities
          furnished to the Premises are not separately metered, Tenant shall pay
          to Landlord, as Additional Rent, Tenant's share of the utilities. All
          utilities charges reflect actual costs and will not be marked up by
          Landlord.

      B.  Cleaning and Upkeep. Tenant shall keep the Premises, including any
          adjoining parking areas, walkways, drives, streets, alleys or yards
          clean and free of rubbish.

      C.  Grounds Maintenance. Tenant shall be responsible for all costs and
          expenses related to maintaining the lawn, shrubs, and any other
          landscaping on the Premises up to the standard which Landlord has
          historically maintained. Cost will be included in Tenant's CAM
          Charges.

      D.  Snowplowing. Tenant shall be responsible for all costs and expenses
          for keeping the Premises free from ice and snow at all times. Cost
          will be included in Tenant's CAM Charges.

      E.  Landlord's Responsibility and Right of Entry. Landlord agrees to
          promptly provide the utilities, grounds maintenance and snowplowing
          described in this Section XVIII. Landlord shall have the right to
          enter upon the Premises at all reasonable hours, with prior notice,
          for the purpose of inspection and repairs, except in case of
          emergency in which case no notice shall be required.

      F.  Repairs by Landlord. Tenant accepts the Premises in their condition at
          Lease commencement and as suited for the uses intended by Tenant.
          Except as otherwise expressly provided in this Lease, Landlord shall
          not be required to make any repairs or improvements to the Premises,
          except repairs to the foundation, exterior walls or roof of the
          Building as necessary for safety and tenantability, and then only if
          not brought about by any act or neglect of Tenant, its agents,
          employees, contractors, invitees, licensees or assignees. Without
          limiting the generality of the foregoing limitation, Landlord
          specifically shall have no obligation to repair any interior or
          exterior glass or doors (including loading doors) located in or on or
          constituting a part of the Premises, nor shall Landlord have any
          obligation to maintain exterior lighting, except that Landlord
          provides a one (1) year warranty on all mechanical, electrical and
          plumbing systems only.

          During the first year of the Lease, Landlord shall be obligated to
          promptly correct any defects in material or workmanship throughout the
          Premises. Tenant is not responsible for any repairs if they are
          required as a direct results of damage caused by Landlord.

      G.  Repairs by Tenant. Tenant shall repair, maintain, replace as
          necessary, and keep in good, clean, and safe repair all interior
          portions of the Premises and all equipment, fixtures, and systems
          therein which are not specifically set forth as the responsibility of
          Landlord elsewhere in this Lease. Tenant's repairs and replacements
          shall include, without limitation, all electrical, plumbing, heating
          and air conditioning systems, parts, components, and fixtures. In

                                       14

<PAGE>   19

          connection therewith, Tenant shall maintain in force at all times a
          maintenance contract for the heating, ventilation and air conditioning
          equipment: (1) acceptable in form and content to Landlord; (2) with a
          service organization acceptable to Landlord; and (3) providing for at
          least semi-annual maintenance of such equipment, and shall provide
          Landlord with a true copy of such maintenance contract. Tenant shall
          also promptly repair or replace all partitions and all glass and plate
          glass within or constituting a part of the Premises immediately when
          cracked or broken, unless caused by Landlord or Landlord's employees
          or agents, and Tenant shall be liable for and shall hold Landlord
          harmless against all loss, cost, and damage (including reasonable
          attorneys' fees) arising from any damage or injury to the Premises or
          the Park or to any person or property caused or contributed to by any
          act or negligence of Tenant, any invitee, agent, affiliate, customer
          or client of Tenant or anyone in Tenant's control or employ. Landlord
          gives to Tenant exclusive control of the interior Premises and shall
          be under no obligation to inspect the Premises. Tenant shall
          immediately reasonably attempt to report in writing to Landlord any
          defective conditions known to Tenant which Landlord is required to
          repair, and failure to promptly report such defects shall make Tenant
          liable to Landlord for any liability incurred by Landlord by reason
          of such defects, and Tenant indemnifies and holds Landlord harmless
          from and against all loss, costs and damage (including reasonable
          attorneys' fees) arising from or related to Tenant's failure to so
          report such defective conditions. In no event shall Tenant cause or
          allow any outside storage of trash, refuse, debris, or anything else
          on the Premises. All personal property of Tenant or Tenant's
          employees, agents, affiliates or invitees located in or brought upon
          the Premises or any part of the Park shall be at risk of Tenant only,
          and Landlord shall not be liable to Tenant or any other party for any
          damage thereto or theft thereof resulting from any cause, unless
          caused by Landlord's negligence.

          If Tenant does not comply with this Section, Landlord shall have the
          right to do or cause to be done all acts necessary to bring Tenant
          into compliance and bill Tenant for all costs involved.

          Tenant shall obtain all necessary governmental permits before making
          any renovations, improvements, alterations or additions to the
          Premises. Landlord agrees to cooperate with Tenant in obtaining such
          permits. However, Landlord shall have no obligation to pay any fees or
          charges in connection therewith.

      H.  Liens. If a mechanic's or construction lien is filed against any
          portion of the Premises or Park as a result of work undertaken by
          Tenant, then within fifteen (15) days after receiving notice of any
          such lien, Tenant shall discharge the lien either by payment of the
          indebtedness due lien claimant or by filing a bond as provided by
          statute.

          If Tenant fails to discharge any lien in accordance with the terms
          hereof, Landlord shall have the right to discharge the lien by filing
          a bond or paying the indebtedness. In this event, Tenant shall pay the
          cost of the bond or the amount of the lien indebtedness to Landlord as
          Additional Rent immediately upon demand. If Tenant does not do so
          within ten (10) days of demand by Landlord, then Tenant shall be in
          default under this Lease and Landlord shall have the same remedies as
          provided for in section 8.

                                       15

<PAGE>   20

XVIII. DAMAGE OR DESTRUCTION.

       A.  If the Premises are rendered partially or wholly unfit for occupancy
           by fire, the elements, act of God, or other casualty (fire, the
           elements, acts of God, or other casualties hereinafter referred to as
           a "Casualty"), and if such damage cannot, in Landlord's reasonable
           estimation, be materially restored within one hundred twenty (120)
           days after such Casualty, then Landlord may, at its sole option,
           terminate this Lease as of the date of such Casualty and the Lease
           Term shall end on such date as if that date had been originally fixed
           in this Lease for the expiration of the Lease Term. Landlord shall
           exercise its election to terminate provided herein by written notice
           to Tenant within sixty (60) days after such Casualty. For purposes
           hereof, the Premises shall be deemed "materially restored" if they
           are in such condition as would not prevent or materially interfere
           with Tenant's use of the Premises for the purpose for which it was
           then being used.

       B.  If this Lease is not terminated pursuant to Subsection A above, then
           Landlord shall proceed with all due diligence to repair and restore
           the Premises, as the case may be (except that Landlord may elect not
           to rebuild, and thus terminate this Lease, if such Casualty occurs
           during the last year of the Lease Term exclusive of any renewal or
           extension option that is unexercised at the date of such Casualty).
           If Landlord shall fail to complete such repairs and material
           restoration within one hundred fifty (150) days after the date of the
           Casualty, then Tenant may at its option and as its sole remedy
           terminate this Lease by delivering written notice to Landlord,
           whereupon the Lease shall end on the date of such notice as if the
           date of such notice were the date originally fixed in this Lease for
           the expiration of the Lease Term hereof; provided, however, that if
           construction is delayed because of changes, deletions, or additions
           in construction requested by Tenant, or because of strikes, lockouts,
           casualties, acts of God, war, material or labor shortages,
           governmental regulation or control, or other causes beyond the
           reasonable control of Landlord, then the period for restoration,
           repair or rebuilding shall be extended for the amount of time
           Landlord is so delayed. In no event shall Landlord be required to
           rebuild, repair or replace any part of the partitions, fixtures,
           additions, or other property and improvements that may have been
           placed in or about the Premises by Tenant.

       C.  If this Lease shall not be terminated by Landlord pursuant to this
           Section and if the Premises are unfit for occupancy in whole or in
           part following such Casualty, then the Base Rent plus all other
           Additional Rent payable during the period in which the Premises are
           unfit for occupancy shall abate in proportion to the percentage of
           the retable area of the Premises rendered unusable by such Casualty;
           provided, however, that no such abatement shall be made under the
           provisions of this Subsection C if such Casualty shall have been
           caused through the negligence or willful misconduct of Tenant, its
           agents, employees, contractors, invitees, licensees, tenants, or
           assignees.

                                       16
<PAGE>   21

       D.  Notwithstanding anything herein to the contrary, if, following any
           Casualty, the holder of any indebtedness secured by a mortgage or
           deed to secure debt or similar instrument covering the Premises
           requires that any insurance proceeds resulting from the Casualty be
           paid to it rather than to Landlord for the rebuilding or restoration
           of the Premises, then Landlord shall have the right to terminate this
           Lease by delivering written notice of termination to Tenant within
           fifteen (15) days after such requirement is made by any such person,
           whereupon the Lease shall end on the date of the Casualty as if the
           date of such Casualty were the date originally fixed in this Lease
           for the expiration of the Lease Term.

       E.  If any Casualty described in this subsection occurs, then Landlord
           shall not be liable to Tenant for any inconvenience, annoyance, loss
           of profits, expenses, or any other type of injury or damage resulting
           from the repair of any such Casualty, or from any repair,
           modification, arranging or rearranging of any portion of the Premises
           or for termination of this Lease as provided in this subsection,
           except to the extent of any bodily injury to persons or damage to
           property resulting solely from Landlord's negligence or intentional
           misconduct in performing such work.

XIX.   CONDEMNATION.

       A.  Total Taking. In the event that the whole of the Premises shall be
           taken under the exercise of the power of eminent domain or by
           agreement with any condemnor in lieu of such taking (herein called a
           "Total Taking"), then this Lease shall terminate as of the earlier of
           the date when title thereto vests in the condemnor or the date when
           possession thereof shall be delivered to the condemnor.

       B.  Award on Total Taking. The entire award with respect to any Total
           Taking shall be paid to Landlord, except that Tenant shall be
           entitled to any award which the condemnor may make, and which shall
           be provided for by law, specifically for Tenant's moving expenses and
           business dislocation damages, provided that same are not deducted
           from the award otherwise payable to Landlord.

       C.  Partial Taking. In the event that any portion or portions of the
           Premises or Common Areas shall be taken under the exercise of the
           power of eminent domain or by agreement with any condemnor in lieu of
           such taking (herein called a "Partial Taking"), then this Lease, only
           as to the portion or portions so taken, shall terminate as of the
           date possession thereof shall be delivered to the condemnor;
           provided, however, if as a result of such Partial Taking, it is
           economically unfeasible to reconstruct or operate for Tenant's
           business the remaining portion of the Premises because of the
           insufficiency in size of the remaining portion of the Premises or
           Tenant's ability to access the Premises is severely reduced, and
           Tenant so certifies to Landlord, then (1) this Lease shall terminate
           thirty (30) days from the date possession of the part taken shall be
           delivered to the condemnor, and (2) such Partial Taking shall be
           deemed to be and treated as a Total Taking.

       D.  Reconstruction. If during the Lease Term there shall be a Partial
           Taking, and if this Lease shall not be terminated on account thereof
           pursuant to the provisions of the immediately preceding Subsection C,
           then (1) Landlord shall repair and restore the remaining portion of
           the Premises so that they constitute architectural units with the
           same general character and condition to the nearest extent possible
           under the circumstances as the previous Premises, and

                                       17

<PAGE>   22

         (2) this Lease shall remain in full force and effect with respect to
         such remaining portion of the Premises, adjusting the proportionate
         share accordingly. Landlord shall use its best efforts to complete the
         reconstruction promptly and within the period mutually agreed upon by
         the parties.

     E.  Award on Partial Taking. The entire award with respect to any Partial
         Taking shall be paid to Landlord.

     F.  Temporary Taking. In the event a taking or condemnation of the
         Premises, or any part thereof, shall be for temporary use or occupancy
         or for a term of years only, then: (1) this Lease and all Tenant's
         obligations hereunder shall continue in full force and effect (except
         to the extent that performance by Tenant of Tenant's covenants and
         agreements is prevented by such taking); (2) there shall be no
         reduction or abatement of Rent; (3) Tenant shall be entitled to the
         entire award with respect to any such taking, except that Landlord
         shall be entitled to any portion of such award allocable to any period
         of time beyond the expiration of the Term of this Lease; and (4) the
         rights of Landlord and Tenant shall be unaffected by the other
         provisions of this Article and shall be governed by applicable law or
         Tenant shall have the option to terminate the Lease with no further
         liability to Landlord.

     G.  Settlement Agreement. For the purposes of this Lease, all amounts paid
         pursuant to an agreement with any condemnor in settlement of any
         condemnation or any eminent domain proceeding affecting the Premises
         shall be deemed to constitute an award made in such proceeding.

     H.  Abatement in Basic Rent. In a case of a Partial Taking which does not
         result in a termination of this Lease, the annual Basic Rent payable
         under this Lease, after possession of the portion so taken shall be
         delivered to the condemnor, shall be reduced in the same proportion as
         the amount of usable floor area of the Premises shall have been reduced
         by such Taking, but any such Partial Taking shall not relieve Tenant
         from Tenant's liability to pay the full Additional Rent payable under
         this Lease, or from any of Tenant's other obligations hereunder, and
         except as herein expressly provided.

XX.  LIABILITY; INDEMNIFICATION OF LANDLORD AND TENANT.

     A.  Damage in General. Tenant agrees that Landlord, and its officers,
         employees and agents and those of all affiliated legal entities shall
         not be liable to Tenant, and Tenant hereby releases said parties, for
         any loss, injury, death, or damage (including incidental or
         consequential damages) to persons, property, or Tenant's business from
         any cause whatsoever, unless such damage, loss or injury results from
         the willful misconduct of Landlord, or its officers, employees or
         agents. Landlord and its officers, employees, and agents shall not be
         liable to Tenant for any such damage or loss, whether or not such
         damage or loss results from willful misconduct, to the extent Tenant is
         compensated therefor by Tenant's insurance.

     B.  Indemnification of Landlord. Tenant agrees to defend with counsel
         reasonably satisfactory to Landlord, indemnify and save harmless
         Landlord from and against any and all liabilities, claims, damages,
         losses, cost and expenses, including without limitation attorneys'
         fees, suffered or incurred by Landlord which is caused solely by: (1)
         the conduct, operation or management of, or any work, act or thing
         whatsoever by Tenant done in, on or about the

                                       18

<PAGE>   23

         Premises; (2) any condition of the Premises, resulting by reason of
         Tenant's failure or refusal to perform its obligations under this
         Lease; (3) any breach or default on the part of Tenant in the
         observance or performance of any of its agreements or obligations
         hereunder; (4) any act or omission of Tenant or any sublessee or
         Assignee of Tenant or any of Tenant's or such sublessee's or Assignee's
         agents, contractors, servants, employees, business invitees, licensees,
         visitors or guests with respect to the Premises and/or Park; and (5)
         any accident, injury to or death of any person or damage to any
         property caused by Tenant or its officers, employees, agents,
         contractors or invitees in or on the Premises. Landlord shall give
         prompt written notice to Tenant of any claim asserted against Landlord
         which, if sustained, may result in liability of Tenant hereunder, but
         failure on the part of Landlord to give such notice shall not relieve
         Tenant from Tenant's obligation to defend, indemnify and save harmless
         Landlord as stated, except to the extent that the failure to give such
         notice results in actual loss or damage to Tenant.

     C.  INDEMNIFICATION OF TENANT. Landlord agrees to defend with counsel
         reasonably satisfactory to Tenant, indemnify and save harmless Tenant
         from and against any and all claims, damages, losses, cost and
         expenses, including without limitation attorneys' fees, suffered or
         incurred by Tenant as the result of any accident, injury to or death of
         any person or damage to any property solely caused in or about the
         Premises by the gross negligence or willful misconduct of Landlord or
         Landlord's employees or its authorized agents. Tenant shall give prompt
         written notice to Landlord of any claim against Tenant which, if
         sustained, may result in liability of Landlord hereunder, but Tenant's
         failure to give such notice shall not relieve Landlord from Landlord's
         obligation to defend, indemnify and save harmless Tenant as stated,
         except to the extent that the failure to give such notice results in
         actual loss or damage to Landlord.

XXI. MISCELLANEOUS PROVISIONS.

     A.  GOVERNING LAW. This Lease shall be construed and interpreted under the
         laws of the State of Michigan applicable to contracts made and fully
         performed within the state.

     B.  REFERENCES. All references made and pronouns used herein shall be
         construed in the singular or plural, and in such gender as the sense
         and circumstances require. All references to Section or paragraph
         numbers or letters shall refer to sections or paragraphs of this Lease
         unless otherwise indicated.

         The headings inserted in this Lease are for reference purposes only and
         shall in no way affect the construction of this Lease or limit the
         generality of any of its provisions.

     C.  BINDING EFFECT. The terms and conditions of this Lease shall also bind
         the respective heirs, successors, personal representatives and assigns
         of the parties.

     D.  ENTIRE AGREEMENT. Except for the documents listed below, if any, this
         Lease constitutes the entire agreement between the parties and shall be
         deemed to supersede and cancel any other agreement between the parties
         relating to the transaction herein contemplated. None of the prior and
         contemporaneous negotiations, preliminary drafts or prior versions of
         this Lease containing conditions not set forth herein shall be used by
         any of the parties to construe or

                                       19
<PAGE>   24

         affect the validity of this Agreement. Each party acknowledges that no
         representation, inducement or condition not set forth herein has been
         made or relied upon by either party.

     E.  ENFORCEABILITY OF PROVISIONS. In case any provision of this Lease or
         any agreement or instrument executed in connection herewith shall be
         deemed invalid, illegal or unenforceable, such provision shall be
         enforced to the fullest extent permitted by applicable law and the
         validity of the remaining provisions hereof shall not in any way be
         affected.

         This Lease shall not be construed more strictly against one party as
         opposed to the other, merely because it may have been prepared by
         counsel for one of the parties. It is recognized that both Landlord
         and Tenant have contributed substantially and materially to the
         preparation of this Lease.

     F.  REMEDIES NOT EXCLUSIVE. All of the rights, remedies and benefits
         provided by this Lease shall be cumulative and shall not be exclusive
         of any other rights, remedies, and benefits allowed by law. One or more
         waivers of any covenant or condition by Landlord shall not be construed
         as a waiver of a further breach of the same or any other covenant or
         condition.

     G.  CONSEQUENTIAL AND INDIRECT DAMAGES. In no event shall either party be
         liable to the other for consequential or indirect damages arising out
         of or as a result of breach of any provision of this Lease.

     H.  RE-LEASING. Tenant agrees that for a period commencing six (6) months
         prior to the termination of this Lease, Landlord may show the Premises
         to prospective tenants. Landlord may list the Premises for lease or
         rent with a broker and may display in and about the Premises the usual
         and ordinary signs.

     I.  ADVERTISING AND SIGNS. All signs and advertising displayed on and about
         the Premises shall only advertise the business carried on upon the
         Premises. Landlord shall control the character and size of all signs
         and no sign shall be displayed except those approved in writing by
         Landlord.

     J.  QUIET ENJOYMENT. Landlord covenants that Tenant, upon payment of all
         the Rent and Additional Rent due under this Lease, and performance of
         the covenants and obligations under this Lease or otherwise, may
         peacefully and quietly occupy the Premises for the term of this Lease
         including any written extensions or modifications of same.

     K.  SALE BY LANDLORD. In the event of any sale, conveyance, transfer, or
         assignment by Landlord of its interest in and to the Premises, all
         obligations under this Lease of the party selling, conveying,
         transferring, assigning or otherwise disposing shall cease and
         terminate and Tenant releases said party from same, and Tenant shall
         thereafter look only and solely to the party to whom or which the
         Premises were sold, conveyed, transferred, assigned or otherwise
         disposed of for performance of all of Landlord's duties and obligations
         under this Lease.

                                       20

<PAGE>   25

     L.  LIMITATION OF LIABILITY. Landlord's obligation and liability to Tenant
         with respect to this Lease shall be limited solely to Landlord's
         interest in the Premises, and neither Landlord, nor any joint venturer,
         partner, officer, director or shareholder of Landlord or its affiliated
         legal entities or any of the joint venturers of Landlord shall have any
         liability whatsoever with respect to this Lease.

     M.  AUTHORITY. Each party executing this Lease warrants that it has full
         power, authority and legal right to execute and deliver this Lease, and
         to keep and observe all of the terms and provisions of this Lease on
         such party's part to be observed and performed. Each party warrants
         that this Lease is its valid and enforceable obligation.

     N.  NO LIABILITY FOR CURTAILMENT, ETC., OF SERVICES. Landlord shall not be
         liable in damages or otherwise and Tenant waives any claim for the
         curtailment, delay, or failure in furnishing any services hereunder
         from any cause whatsoever, except where such curtailment, delay or
         failure is caused by Landlord's willful misconduct. In no event will
         Landlord have any liability for any consequential, incidental, or
         special damages in connection with furnishing services pursuant to this
         Lease, nor shall any curtailment, delay, or failure in providing
         services, regardless of cause, constitute an eviction of Tenant or
         termination of this Lease. Landlord shall use reasonable efforts to
         restore promptly the curtailed, delayed or failed service.

     O.  SURVIVAL. All agreements and obligations of Tenant hereunder which
         require observance or performance after the expiration or termination
         of this Lease, or which cannot reasonably be ascertained as having been
         observed or performed at the time of such expiration or termination,
         shall survive, and be enforceable against Tenant following such
         expiration or termination.

     P.  NOTICES. Whenever a provision is made for notice of any kind, it shall
         be served by United States first class mail, Federal Express, Airborne
         Express, United Parcel Service, facsimile (acknowledged receipt only)
         or personally delivered to the party being put on notice at the
         addresses listed below or such other addresses as the parties may
         indicate for themselves by written notice delivered in like manner.

         IF TO LANDLORD:           DART CONTAINER CORPORATION OF MICHIGAN
                                   500 Hogsback Road - Treasury Department
                                   Mason, Michigan 48854-9541
                                   ATTN: William Myers

         IF TO TENANT:             GENOMIC SOLUTIONS, INC.
                                   4355 Varsity Drive
                                   Ann Arbor, Michigan 48108
                                   ATTN: Jeffrey Williams, President

                                   WITH A COPY TO:
                                   GENOMIC SOLUTIONS, INC.
                                   36120 Sovereign Drive, No. 4A
                                   Lansing, Michigan 48911
                                   ATTN: Office Manager

                                       21
<PAGE>   26

This lease is signed and made effective as of the date first written above.

                                   LANDLORD:
WITNESSED BY:                      DART CONTAINER CORPORATION OF
                                   MICHIGAN

/s/ Joseph V. Mitchell             BY:  /s/ William L. Myers
------------------------------          ----------------------------------------
[signature]                             William L. Myers
                                   ITS: Treasurer
Joseph V. Mitchell
------------------------------
[print name]

                                   TENANT:
                                   GENOMIC SOLUTIONS, INC.

                                   BY:  /s/ Jeffrey Williams
------------------------------          ----------------------------------------
[signature]                             Jeffrey Williams
                                   ITS: President & CEO
------------------------------
[print name]

                                   BY:  /s/ Steven Richavalsky
------------------------------          ----------------------------------------
[signature]                             Steven Richavalsky
                                   ITS: CFO

------------------------------
[print name]

                                       22<PAGE>   1
                                                                   Exhibit 10.16

                            B.I. SYSTEMS CORPORATION
                                 LEASE AGREEMENT

                             ANN ARBOR COMMERCE PARK
                               ANN ARBOR, MICHIGAN

    THIS LEASE is made as of the 7th day of August, 1997, by and between
HIGHLAND INDUSTRIAL  PROPERTIES, L.L.C., a Michigan Partnership, the address of
which is 28777 Northwestern Hwy., Suite 100, Southfield, Michigan 48034, as
Lessor, and B.I. Systems Corporation, a Delaware corporation, the current
address of which is 525 Avis Drive Suite 10, Ann Arbor, Michigan, as Lessee.

    IN CONSIDERATION OF the rents to be paid and the mutual covenants, promises
and agreements herein set forth, Lessor and Lessee agree as follows:

    LESSOR hereby leases unto Lessee office and manufacturing situated in the
Township of Pittsfield, County of Washtenaw, State of Michigan, in a single
story office/industrial building located at 4355 Varsity Drive Suite "F" Ann
Arbor Commerce Park (the "Building"), which development is shown on the site
plan marked Exhibit "A", attached hereto and made a part thereof, such Leased
Premises being designated by cross-hatching.  The legal description of the
Building is more particularly described on Exhibit "B", attached hereto and made
a part thereof.

    TO HAVE AND TO HOLD for a term of Sixty (60) months from and after the
commencement of the term as hereinafter provided.

                                    SECTION 1

                            CONSTRUCTION OF BUILDING

    Section 1.01: Lessor agrees, prior to commencement of the term of this
Lease, to complete construction of the Leased Premises and related improvements
on the site in accordance with the plans enumerated on Exhibit "C", attached
hereto and made a part hereof, which shall be deemed part of the Building
referred to above.  The Leased Premises shall consist of an exterior of
approximately 8931 square feet on one (1) floor.  No minor change from such
plans which may be necessary during construction shall affect, change, or
invalidate this Lease.  If Lessor shall be in good faith delayed in construction
by any labor dispute, strike, lockout, fire, unavailability of material,
weather, or casualty or any other cause beyond its reasonable control, then the
period of delay necessarily caused thereby shall be added to the time limit
provided for such construction.

                                    SECTION 2

                       POSSESSION AND COMMENCEMENT OF TERM

    Section 2.01: Except as herein provided, Lessor shall deliver possession of
the Leased Premises to Lessee within ninety (90) days from Lessor's receipt of a
building permit from Pittsfield Township.  The Leased Premises shall be deemed
ready for Lessee's occupancy when Lessor shall have substantially completed
construction of said Leased Premises pursuant to the plans on Exhibit "A" and
"C" and receive a temporary Certificate of Occupancy from the Township of
Pittsfield.  By occupying the Leased Premises, Lessee will be deemed to have
accepted the Leased Premises and acknowledged that they are in the condition
called for hereunder. The rentals herein reserved and the term of this Lease
shall commence on the date when the Premises are delivered to Lessee as required
hereunder.  Lessor will require its contractors to cooperate with Lessee's
installers of equipment trade fixtures, furnishings, and decorations attached to
the real estate improvements to the maximum extent possible, but delay of or
interference with construction caused by such installers shall not postpone the
commencement of the term or the obligation to commence paying rent. If delivery
of the Leased Premises is delayed for reasons beyond the control of Lessor or
reasons not

                                        1
<PAGE>   2

caused by the Lessee, beyond February 1, 1998, the Lessee shall have the option
to cancel this Lease, upon written notice to Lessor.

    Section 2.02:  Except as stated in Section 2.01 above, in the event Lessor
fails to deliver the Leased Premises on the commencement date because the Leased
Premises are not then ready for occupancy, or because the previous occupant of
said Leased Premises is holding over, or for any other cause whatsoever, except
as provided in Section 1.01, Lessor shall not be liable to Lessee for damages,
as a result of Lessor's delay in delivering such promises, and Lessee shall have
no right to terminate the Lease or contest the validity of the Lease, and the
commencement date of the Lease shall be postponed until such time as the Leased
Premises are ready for Lessee's occupancy, and the termination date of this
Lease shall be extended for a period equivalent to the period of such
postponement, provided such postponed termination date shall occur on the last
day of a calendar month; if not, then such termination date shall be extended by
an additional period so as to fall on the last day of such calendar month in
which it would otherwise occur.

    Section 2.03:  On the commencement date, or within fifteen (15) days
thereafter upon request by Lessor, Lessee shall execute a written instrument
confirming the commencement date and the termination date of the Lease, that the
Lease is in full force and effect, the rent is paid currently without any offset
or defense thereto, the amount of rent, if any, paid in advance, and that there
are no uncured defaults by Lessor, or stating those claimed by Lessee, provided
that, such facts are accurate and ascertainable.

                                    SECTION 3

                                  BASIC RENTAL

    Section 3.01: In consideration of the leasing aforesaid, Lessee hereby
covenants and agrees to pay Lessor, at such place as Lessor may hereafter from
time to time designate in writing, a minimum net rental payable monthly in
advance on the first day of each and every month in equal monthly installments
as follows:

<TABLE>
<CAPTION>

<S>                                            <C>
Months 1 - 12:                                 $ 9.00 per square foot or $6,698.25 per month
Months 13 - 24:                                $ 9.25 per square foot or $6,884.31 per month
Months 25 - 36:                                $ 9.50 per square foot or $7,070.38 per month
Months 37 - 48:                                $ 9.75 per square foot or $7,256.44 per month
Months 49 - 60:                                $10.00 per square foot or $7,442.50 per month
</TABLE>

    Receipt of Seven Thousand Five Hundred ($7,500.00) Dollars, representing
Security Deposit is hereby acknowledged. The rental payments shall be made by
Lessee at the office of Lessor without any prior demand therefore and without
any deductions or set-offs whatsoever.

    Section 3.02:  Lessor and Lessee intend that the minimum net rental shall be
net to Lessor, so that the Lease shall yield, net, to Lessor, not less than the
minimum net rent specified in Section 3.01 hereof during the term of this Lease,
and that all costs, expenses, and charges as provided in this Lease relating to
the Leased Premises which may be attributable to, or become due during the term
of this Lease, shall be paid by Lessee.  Provided, however, that if the lease
term shall commence on a day other than the first day of a calendar month, then
the rental for such month shall be prorated upon a daily basis based upon a
thirty (30) day calendar month.

                                   SECTION 4

                        TAXES, ASSESSMENTS AND UTILITIES

    Section  4.01: Lessee agrees to pay lessor its proportionate share of all ad
valorem real property taxes and assessments which have been or may be levied or
assessed by any lawful

                                       2
<PAGE>   3

authority, for any calendar year during the term hereof, against the land and
Leased Premises presently and/or at any time during the term of this Lease
comprising the Building.  Lessee's proportionate share shall be equal to the
product obtained by multiplying such taxes and assessments by a fraction, the
numerator of which shall be the number of square feet of floor area in the
Leased Premises, and the denominator of which shall be the total number of
square feet of constructed leasable floor area in the Building.  Any tax and/or
assessment of any kind or nature, but not those not related to construction of
the building or project, and not SBT or income taxes, presently or hereafter
imposed by the State of Michigan or any political subdivision thereof or any
governmental authority having jurisdiction there over upon, against or with
respect to the rentals payable by tenants in the Building to Lessor or on the
income of Lessor derived from the Building or with respect to the Lessor's, or
the individuals or entities which form the Lessor herein, ownership of the land
and buildings presently and/or at any time during the term of this Lease
comprising the Building, either by way of substitution for all or any part of
the taxes and assessments levied or assessed against such land and such
buildings shall be deemed to constitute a tax and/or assessment against such
land and such buildings for the purpose of this Section, and Lessee shall be
obligated to pay its proportionate share thereof as provided herein.  In
addition, Lessee shall also be obligated to pay any sales tax imposed by any
governmental authority on the payments by Lessee or on the receipt by Lessor of
any and all payments from Lessee. If the sales tax is separately assessed, then
Lessee shall pay that amount imposed on the individual  payments of Lessee;  if
the sales tax is not separately assessed, the Lessee shall pay its proportionate
share monthly as provided herein.

    Section  4.02:  Lessee's share of all of the aforesaid taxes and assessments
levied or assessed for or during the term hereof, as determined by Lessor, shall
be paid in monthly installments on or before the first day of each calendar
month, in advance, in an amount estimated by Lessor; provided, that in the event
Lessor is required under any mortgage covering the land and improvements Leased
to Lessee to escrow real estate taxes, Lessor may, but shall not be obligated
to, use the amount required to be so escrowed as a basis for its estimate of the
monthly installments due from Lessee hereunder.  Upon receipt of all tax bills
and assessment bills attributable to any calendar year during the term hereof,
Lessor shall furnish Lessee with a written statement of the actual amount of
Lessee's share of the taxes and assessments for such year. In the event no tax
bill is available, Lessor will compute the amount of such tax. If the total
amount paid by Lessee under this Section for any such year, as shown on such
statement, Lessee shall pay to Lessor the difference between the amount paid by
Lessee and the actual amount due, such deficiency to be paid within thirty (30)
days after demand therefore by Lessor; and if the total amount paid by Lessee
hereunder for such calendar year shall exceed such actual amount due from Lessee
for such calendar year, such excess shall be credited against the next
installment of taxes and assessments due from Lessee to Lessor hereunder.  All
amounts due hereunder shall be payable to Lessor at the place where the fixed
annual rental is payable.  For the calendar years in which this Lease commences
and terminates, the provisions of this Section shall apply, and Lessee's
liability for its proportionate share of any taxes and assessments for such
years shall be subject to a pro rata adjustment based on the number of days of
said calendar years during which the term of this Lease is in effect.  A copy of
a tax bill or assessment bill submitted by Lessor to Lessee shall at all times
be sufficient evidence of the amount of taxes and/or assessments assessed or
levied against the property to which such bill relates, Prior to or at the
commencement of the term of this Lease and from time to time thereafter
throughout the term hereof, Lessor shall notify Lessee, in writing, or Lessees
estimate of Lessee's monthly installments due hereunder.  Lessor's and Lessee's
obligations under this Section shall survive the expiration of the term of this
Lease.  In the case of a property tax refund or rebate the Lessee will get its
proportionate share of such less the expenses the lessor incurs to accomplish
the refund or rebate.

    Section 4.03: Lessee also agrees to pay all charges made against the Leased
Premises for gas, heat, electricity, and all other utilities separately metered
during the continuance of this Lease as the same shall become due.

    Section 4.04: If the Lessee shall fail to pay utility payments when due,
Lessor shall have the option to set up a monthly utility escrow deposit for the
Lessee in order to insure that Lessee will pay any monthly utility costs.  If
the utility payments when due, exceed the total number than in the utility
escrow account, then the Lessee shall, upon demand, pay any deficiency to
Lessor. If such

                                        3
<PAGE>   4
payments by Lessee, over the term of the Lease exceed the amount of utilities
paid from the escrow, the excess shall be refunded by Lessor to the Lessee. The
utility escrow may be adjusted by the Lessor as often as necessary to provide
sufficient funds in the utility escrow account to pay current utilities due from
Lessee.

                                   SECTION 5

                                USE OF PREMISES

    Section 5.01: It is understood and agreed between the parties, that the
Leased Premises, during the continuance of this Lease, shall be used and
occupied for Office, Warehouse, Product development and Production and any other
lawful purpose only and for no other purpose without the prior written consent
of Lessor. Lessee agrees that it will not use or permit any person to use the
Leased Premises or any part thereof for any use or purpose in violation of the
laws of the United States, the State of Michigan, the ordinances or other
regulations of the Township of Pittsfield or of any other lawful authorities.
During the original term or any extended term, the Lessee shall keep the Leased
Premises and every part thereof and the area adjacent to the Leased Premises
(including any service areas for the Leased Premises), orderly, neat, safe, and
clean and free from rubbish and dirt, and at all times shall store all trash,
garbage, or any other material solely within the Leased Premises and Lessor
shall arrange for the regular pickup of such trash and garbage at Lessee's
expense. Lessee shall not burn any trash or garbage at any time in or about the
building. If Lessor shall provided any services or facilities for such pickup,
then Lessee shall be obligated to use the same and shall pay a proportionate
share of the actual cost thereof within ten (10) days after being billed
therefor. Lessee shall not store or leave any material outside of the building
at any time. All signs and advertising displayed in and about the Leased
Premises shall be such only as to advertise the business carried on upon the
Leased Premises, and Lessor shall control the location, character, and size
thereof. No signs shall be displayed except as approved in writing by the
Lessor; and no awning shall be installed or used on the exterior of said
building unless approved in writing by the Lessor.

                                    SECTION 6

                    OPERATION AND MAINTENANCE OF COMMON AREAS

    Section 6.01: Lessor agrees, at Lessor's sole cost and expense, to construct
the building and hard surface, to properly drain, landscape, and light a parking
area or parking areas, all substantially as shown on Exhibit "A". Lessor further
agrees to cause to be operated, managed, and maintained during the term of this
Lease, all parking areas, roads, sidewalks, landscaping, drainage, and common
area lighting facilities in the Building. The manner in which such areas and
facilities shall be maintained and operated, shall be reasonably clean, safe,
and professional, and the expenditures therefore, shall be at the discretion of
the Lessor, but same shall be at competitive rates for comparable services
provided by the Lessor, subject to reasonable regulations as Lessor shall make
from time to time.

    Section 6.02: Lessee agrees to pay to Lessor in the manner hereinafter
provided, but not more often than once each month, Lessee's proportionate share
of all costs and expenses of every kind and nature paid or incurred by Lessor in
operating, policing and protecting, lighting, insuring, repairing, and
maintaining the common areas of the Building. Such costs and expenses shall
include, but not be limited to, illumination and maintenance of the Building
signs, cleaning, lighting, line painting and landscaping, premiums liability and
property insurance. Any utilities furnished or supplied to common areas of the
Building which are not separately metered shall be considered a cost to maintain
the common areas and shall be included as part of such cost. For the purpose
hereof, any charges for utilities contained in the foregoing costs and expenses
shall be at the same rates as the rates for comparable service from the
applicable utility company serving the area in which the building is located.
The proportionate share to be paid by Lessee shall be computed on the basis that
the total number of square feet of floor area in the Leased Premises bears to
the total number of square feet of the Building.

                                       4

<PAGE>   5

    Lessee's proportionate share of such costs and expenses for each Lease year
and partial Lease year shall be paid in monthly installments on the first day of
each month, in advance, in an amount established by Lessor. Within one hundred
eighty (180) days after the end of each Lease year or partial Lease year Lessor
shall furnish Lessee with a statement of the actual amount of Lessee's
proportionate share of such costs and expenses for such period. If the total
amount paid by Lessee under this Section for any calendar year shall be less
than the actual amount due from Lessee for such year as shown on such statement,
Lessee shall pay to lessor the difference between the amount paid by Lessee and
the actual amount due, such deficiency to be paid within thirty (30) days after
the furnishing of each such statement, and if the total amount paid by Lessee
hereunder for any such calendar year shall exceed such actual amount due from
Lessee for such calendar year, such excess shall be credited against the
installment due from Lessee to Lessor under this Section 6.02. The Lessee will
have the right to audit Lessor's books to determine and/or verify the expenses
incurred and charged back to Lessee pursuant to this Lease Agreement. Lessee
shall give Lessor advance notice of Lessee's intent to audit and any and all
audits shall be at Lessee's sole expense. Attached hereto is Exhibit "C", a list
of expenses which will not be included in any chargebacks to Lessee pursuant to
this Lease.

                                    SECTION 7

                   MAINTENANCE AND REPAIRS OF LEASED PREMISES

    Section 7.01: Lessor shall keep and maintain the foundation, exterior walls,
and roof of the Building in which the Leased Premises are located and the
structural portions of the Leased Premises which were originally installed by
Lessor, exclusive of door, door frames, door checks, windows, and exclusive of
window frames located in exterior building walls, in good repair, except that
Lessor shall not be called upon to make any such repairs occasioned by the act
or negligence of Lessee, its agents, employees, invitees, licensees, or
contractors, except to the extent that Lessor is reimbursed therefore under any
policy of insurance permitting waiver of subrogation in advance of loss. Lessor
shall not be called upon to make any other improvements or repairs of any kind
upon said Premises and appurtenances, except as may be required under Section 11
and 12 hereof.

    Section 7.02: Except as provided in Section 7.01 of this Lease, Lessee shall
keep and maintain in good order, condition and repair (including replacement of
parts and equipment if necessary) the Leased Premises (as defined herein and in
Section 6 hereof and every part thereof and all appurtenances thereto wherever
located, including, but without limitation, the exterior and interior portion of
all doors, door checks, windows, plate windows, store front, all plumbing and
sewage facilities within the Leased Premises, including free flow up to the main
sewer line, fixtures, heating and air conditioning, and electrical systems,
sprinkler system, interior walls, floor coverings, and ceilings. The plumbing
and sewage facilities shall not be used for any other purpose than that for
which they are constructed, and no foreign substance of any kind shall be
introduced therein. Lessee hereby agrees to be responsible for any expenses
incurred in connection with any breakage, stoppage, or damage resulting from a
violation of this provision by Lessee, its agents, employees, invitees,
licensees, or contractors.

    Lessor shall be responsible for all costs, as long as such costs are not due
to the negligence of Lessee, related to the following: (1) replacement of the
main electrical distribution panel if such panel cannot be repaired but rather
needs complete replacement; (2) the roof-top H.V.A.C. units, if such components
cannot be repaired but rather such H.V.A.C. units need complete replacement; and
(3) if the underground sewer or water system shall burst or break. The Lessor
will also be responsible for enforcing its warranties for the HVAC systems, and
electrical systems.

    Lessee shall keep and maintain the Leased Premises as defined herein, in a
clean, sanitary, and safe condition in accordance with the laws of the State of
Michigan and in accordance with all direction, rules, and regulations of the
health office, fire marshall, building inspector, or other proper officials of
the governmental agencies having jurisdiction, at the sole cost and expense of
Lessee, and Lessee shall comply with all requirements of law, ordinance, and
otherwise, affecting and resulting from the Lessee's particular use of the
Leased Premises.  If Lessee refuses or neglects to commence or complete repairs
required by Section 7.02 hereof promptly and adequately, Lessor

                                       5
<PAGE>   6

may, but shall not be required to do so, make all or any part of said repairs,
and Lessee shall pay the cost thereof to Lessor upon demand, non-payment of
which shall entitle Lessor to exercise any remedy available to it in the event
of the non-payment by Lessee of rental or any other charge due to Lessor under
this Lease. At the time of the expiration of the tenancy created herein, Lessee
shall surrender the Premises in good condition, reasonable wear and tear, loss
by fire, or other casualty excepted.

    Lessee, at its own expense, shall maintain fire extinguishers and other fire
protection devices to be placed in or on the Leased Premises as may be required
from time to time by any agency having jurisdiction thereof and the insurance
underwriters insuring the building in which the Leased Premises are located.

    Section 7.03: All damages or injury done to the Leased Premises by the
Lessee, or by any person who may be in or upon the Leased Premises with the
consent, invitation or license of the Lessee, shall be repaired and paid for by
the Lessee.

                                    SECTION 8

                                   ALTERATIONS

    Section 8.01: With the exception of decorating and/or minor alterations,
Lessee agrees that the Leased Premises shall not be altered, improved, or
changed without the written consent of Lessor, and that unless otherwise
provided by written agreement, all alterations, improvements, and changes which
may be desired by the Lessee and so consented to by the Lessor shall be done
either by or under the direction of the Lessor, but at the cost of Lessee. All
alterations, additions, and improvements made in or to the Building or the
Leased Premises, except movable office furniture put in at the expense of the
Lessee and removable without defacing or injuring the building or Leased
Premises, shall, unless otherwise provided by written agreement, be the property
of Lessor and remain upon and be surrendered with the Leased Premises; provided,
however, as long as written notice is given at the time of approval the Lessor
will designate by written notice to Lessee those alterations, additions, and
improvements which shall be removed by Lessee at the expiration or termination
of the Lease, and Lessee shall promptly remove the same and repair any damage to
the Leased Premises caused by such removal.

                                    SECTION 9

                                      LIENS

    Section 9.01: Lessee shall keep the Leased Premises free from any and all
liens arising out of any work performed, materials furnished, or obligations
incurred by or for Lessee, and agrees to bond against or discharge any
mechanic's or material-men's lien within ten (10) days after written request
therefore by Lessor. Lessee shall reimburse Lessor for any and all costs and
expenses which may be incurred by Lessor by reason of the filing of any such
liens and/or the removal of same, such reimbursement to be made within ten (10)
days after receipt by Lessee from Lessor of a statement setting forth the amount
of such costs and expenses. The failure of Lessee to pay any such amount to
Lessor within said ten (10) day period shall carry with it the same consequences
as failure to pay any installment of rental.

                                   SECTION 10

                             INSURANCE AND INDEMNITY

    Section 10.01A: Lessee shall, during the entire term hereof, keep in full
force and effect a policy of public liability and property damage insurance with
respect to the Leased Premises, and the business operated by Lessee and any
subtenants of Lessee in the Leased Premises, including steam boiler insurance if
applicable, in which the limits of public liability shall be not less than One
Million Dollars ($ 1,000,000.00) per occurrence, and in which the limit of
property damage liability shall be not less than Five Hundred Thousand Dollars
($500,000.00). The policy shall name Lessor,

                                       6
<PAGE>   7

any other parties in interest designed by Lessor, and Lessee as insured, and
shall contain a clause that the insurer will not cancel or change the insurance
without first giving the Lessor thirty (30) days prior written notice. Such
insurance may be furnished by Lessee under any blanket policy carried by it or
under a separate policy therefor. The insurance shall be with an insurance
company approved by Lessor and a copy of the paid-up policy evidencing such
insurance or a certificate of insurer certifying to the issuance of such policy
shall be delivered to Lessor prior to commencement of Lease Term and upon
renewals not less than thirty (30) days prior to the expiration of such
coverage.

    Section 10.01B: Lessee shall, during the term hereof, keep in full force and
effect a policy of public liability and property damage insurance with respect
to the common area, in which the limits of public liability and property
liability shall be not less the one million dollars ($ 1,000,000.00) per
occurrence, and in which the limit of property damage liability shall be not
less than five hundred thousand dollars ($500,000.00) per occurrence.

    Section 10.02: Lessor agrees, during the term hereof, to carry insurance
against fire, vandalism, malicious mischief, and such other perils as are from
time to time included in a standard extended coverage endorsement and, at
Lessor's option, special extended coverage endorsements including rental
interruption insurance equal to twelve (12) full months of rental and tax
obligations, insuring the improvements of the Building in an amount determined
solely by Lessor, but not less than one hundred percent (100%) of the full
replacement cost, if available, and with or without reasonable deductible not to
exceed $            , at the option of Lessor. Lessee agrees, from time to time,
to pay Lessor, Lessee's proportionate share of the cost of such insurance, such
payment to be made within ten (10) days after receipt of a written statement
from Lessor setting forth such cost. The proportionate share to be paid by
Lessee shall be computed on the basis that the total number of square feet of
floor area in the Leased Premises bears to the total number of square feet of
constructed leasable floor area in the Building.

    Lessee shall not carry any stock of goods or do anything in or about said
Leased Premises which will in any way tend to increase the insurance rates on
said Leased Premises and/or the Building of which they are a part. If Lessee
installs any electrical equipment that overloads the lines in the Leased
Premises, Lessee shall, at its own expense, make whatever changes are necessary
to comply with the requirements of the insurance underwriters and governmental
authorities having jurisdiction.

    Section 10.03: Lessee covenants to indemnify Lessor, and save it harmless
(except for loss or damage resulting from the negligence of Lessor, its agents,
or employees) from and against any and all claims, action, damages, liability,
and expense, including attorney's fees, in connection with loss of life,
personal injury, and/or damage to property arising from or out of any occurrence
in, upon, or at the Leased Premises or the occupancy or use by Lessee of the
Leased Premises or any part thereof, or arising from or out of Lessee's failure
to comply with Section 7.02 hereof, or occasioned wholly or in part by any act
or omission of Lessee, its agents, contractors, employees, servants, customers,
or licensees. For the purpose hereof, the Leased Premises shall include the
service areas adjoining the same and the loading platform area allocated to the
use of Lessee. In case Lessor shall, without fault on its part, be made a party
to any litigation commenced by or against Lessee, then Lessee shall protect and
hold Lessor harmless, and shall pay all costs, expenses, and reasonable
attorneys' fees incurred or paid by Lessor in connection with such litigation.
Lessee shall also pay all of Lessor's costs, expenses, and reasonable attorneys'
fees that may be incurred by Lessor in enforcing the Lessee's covenants and
agreements in this Lease.

                                   SECTION 11

                         DESTRUCTION OF LEASED PREMISES

    Section 11.01: In the event the Leased Premises shall be partially or
totally destroyed by fire or other casualty insured under the insurance carried
by Lessor pursuant to Section 10.02 of this Lease, as to become partially or
totally untenantable, the damage to the Leased Premises shall promptly be
repaired by Lessor, to the extent of any proceeds received from any insurance,
unless

                                        7
<PAGE>   8

Lessor shall elect not to rebuild as hereinafter provided, and a just and
proportionate part of the fixed minimum rental and all other charges shall be
abated, annually, until so repaired. The obligation of Lessor hereunder shall be
limited to reconstruction of the Leased Premises in accordance with the initial
plans and specifications for the construction of the Leased Premises. In no
event shall Lessor be required to repair or replace Lessee's merchandise, trade
fixtures, furnishings, or equipment. If more than thirty-five (35%) percent of
the Leased Premises or more than thirty-five (35%) of the floor area of the
Building in which the Leased Premises are located shall be destroyed by fire or
other casualty, then Lessor may elect either to repair or rebuild the Leased
Premises or the Building of which the Leased Premises are a part, as the case
may be, or to terminate this Lease by giving written notice to Lessee of its
election to so terminate, such notice to be given within sixty (60) days after
the occurrence of such damage or destruction. If Lessor elects to restore the
Leased Premises, Lessor shall do so within one hundred eighty (180) days after
giving notice to Lessee of such election. If Lessor fails to tender possession
to Lessee after the one hundred eighty (180) days, Lessee shall have the option
of terminating this Lease by sending notice on the one hundred eightieth
(180th) day to Lessor. Such notice shall inform Lessor of Lessee's election to
terminate.

    Section 11.01B: If more then thirty five (35%) percent of the Leased
Premises or more than thirty five (35%) of the floor area of the building in
which the Leased Premises are located shall be destroyed by fire or other
casualty, or if Lessor can't provide a certificate from an architect or
contractor showing reasonable expectations that the restoration can be completed
within 180 days, then such notice to be given within sixty (60) days after the
occurrence of such damage or destruction.

    Section 11.02: Each party hereto does hereby remise, release, and discharge
the other party hereto and any officer, agent, employee, or representative of
such party, of and from any liability whatsoever hereafter arising from loss,
damage, or injury caused by fire or other casualty from which insurance
(permitting waiver of liability and containing a waiver of subrogation) is
carried by the injured party at the time of such loss, damage, or injury to the
extent of any recovery by the injured party under such insurance. Both parties
are hereby obligated to submit waiver of subrogation documentation to their
respective insurance companies.

                                   SECTION 12

                                 EMINENT DOMAIN

    Section 12.01: In the event, during the term of this Lease, proceedings
shall be instituted under the power of eminent domain which shall result in the
taking of any part of the Leased Premises or the floor area of the Building in
which the Leased Premises are a part, or the taking of a material portion of the
parking area so that the number of spaces is thereby reduced to such an extent
that Lessee's business is significantly and adversely affected, and which shall
result in an eviction total or partial of the Lessee therefrom, then at the time
of such eviction, this Lease shall be void and the term above demised shall
cease and terminate; and if Lessee shall thereafter continue in possession of
the Leased Premises or any part thereof, it shall be a Lease from month to month
and for no longer term, anything in this instrument to the contrary
notwithstanding. If there is only a partial taking, not including a portion of
the Building but reducing the parking to the extent described in the previous
sentence, the Lessor shall restore the parking to the extent necessary to permit
Lessee to continue the use of the premises and there shall be no reduction in
the monthly rental. Provided, further, that the whole of any award for any
portion of the Building taken by reason of said condemnation proceedings shall
be the sole property of, and be payable to, the Lessor, and provided, further,
that the whole of any award for loss of business and for removal and relocation
expenses in any condemnation proceedings shall be the sole property of, and be
payable to, the Lessee. It is further agreed that in any such condemnation
proceedings, the Lessor and Lessee shall each seek its own award at its own
expense.

                                       8
<PAGE>   9

                                   SECTION 13

                                   ASSIGNMENT

    Section 13.01: Lessee shall not assign or sublet the Leased Premises or any
part thereof without first obtaining the Lessor's written consent, except that
the Lessee may, without Lessor's consent, assign or sublet all or any of the
part of the Premises to wholly or substantially owned subsidiaries of other
affiliates of Lessee, or to a party who has purchased all or substantially all
of the assets of the Lessee of this Lease, the Lessee, for a use permitted
pursuant to Section 5.01 hereof, and provided that Lessee is not at such time in
default hereunder, and provided further that such successor shall execute an
instrument in writing assuming all of the obligations and liabilities to the
Lessor, and provided further that such assignment or subletting shall not
operate to release Lessee from any of its obligations under the Lease.

                                   SECTION 14

                             INSPECTION OF PREMISES

    Section 14.01: Lessee agrees to permit Lessor and the authorized
representatives of Lessor to enter the Leased Premises at all reasonable times
during business hours for the purpose of inspecting the same.

                                   SECTION 15

                             FIXTURES AND EQUIPMENT

    Section 15.01: All fixtures and equipment paid for by the Lessor and all
fixtures and equipment which may be paid for and placed on the Leased Premises
by the Lessee from time to time, but which are so incorporated and affixed to
the Building that their removal would involve damage or structural change to the
Building, shall be and remain the property of the Lessor.

    Section 15.02: All furnishings, equipment, and fixtures other than those
specified in Section 15.01, which are paid for and placed on the Leased
Premises by Lessee from time to time (other than those which are replacements
for fixtures originally paid for by Lessor) shall remain the property of the
Lessee.

                                   SECTION 16

                                NOTICE OR DEMANDS

    Section 16.01: All notices to or demands upon Lessor or Lessee desired or
required to be given under any of the provisions hereof shall be in writing. Any
notices or demands from Lessor to Lessee shall be deemed to have been duly and
sufficiently given if a copy thereof has been sent by overnight delivery, fax
or mailed by United States mail in an envelope properly stamped and addressed to
Lessee at the address of the Leased Premises, or at such other address as Lessee
may have last furnished in writing to Lessor for such purpose, and any notices
or demands from Lessee to Lessor shall be deemed to have been duly and
sufficiently given if mailed by United States mail in an envelope properly
stamped and addressed to Lessor at the address last furnished by written notice
from Lessor to Lessee. The effective date of such notice shall be one (1)
business day following the delivery of the same to the United States Post Office
for mailing.

                                   SECTION 17

                                   BANKRUPTCY

    Section 17.01: Lessee covenants and agrees that if any one or more of the
following events occur, namely:

                                       9

<PAGE>   10

    (a)  Lessee shall be adjudged a bankrupt or insolvent or trustee shall be
appointed for Lessee after a petition has been filed for Lessee's reorganization
or arrangement under the Federal Bankruptcy Laws, as now or hereafter amended,
or under the laws of any State, and any such adjudication or appointment shall
not have been vacated or stayed or set aside within thirty (30) days from the
date of the entry or granted thereof; or

    (b)  Lessee shall file, or consent to any petition in bankruptcy or
arrangement under the Federal Bankruptcy Laws, as not or hereafter amended, or
under the laws of any State; or

    (c)  A decree or order appointing a receiver of the property of Lessee shall
be made and such decree or order shall not have been vacated, stayed or set
aside within thirty (30) days from the date of the entry or granted thereof, or
Lessee shall apply for or consent to the appointment of a receiver for Lessee;
or

    (d)  Lessee shall make any assignment for the benefit or credits;

then it shall be lawful for Lessor, at his election, to declare a default as
hereinafter defined and the term of the Lease ended.

                                   SECTION 18

                         DEFAULT, RE-ENTRY, AND DAMAGES

    Section 18.01: In case any rent or other payments required to be made by
Lessee shall be due and remain unpaid for more than ten (10) days after written
notice, or if default be made in any of the other covenants, agreements,
stipulations, or conditions herein contained and such default shall continue for
a period of thirty (30) days after written notice of such default, or if the
Leased Premises shall be deserted, or vacated, or if Lessee is declared bankrupt
or insolvent as detailed in Section 17.01 herein, Lessor, in addition to other
rights or remedies it may have, shall have the immediate right of re-entry and
may remove all persons and property from the Leased Premises pursuant to
applicable Michigan law, such property may be removed and stored in any other
place in the Building in which the Leased Premises are situated, or in any other
place, for the account of, and at the expense and at the risk of Lessee. Lessee
hereby waives all claims for damages which may be caused by the re-entry of
Lessor pursuant to a Court Order or other process of law, and taking possession
of the Leased Premises or removing or storing of furniture and property as
herein provided, and will hold Lessor harmless from any and all losses, costs,
or damages occasioned Lessor thereby, and no such re-entry shall be considered
or construed to be a forcible entry.

    Notwithstanding the foregoing, in the event of a non-monetary default by
Lessee, Lessor will give Lessee a reasonable opportunity to cure any
non-monetary default prior to declaring a default hereunder. Lessee agrees to
cure any non-monetary default within fifteen (15) days of Lessor's notice of
same, unless the default is of the nature the warrants a longer cure period,
whereby Lessee agrees to use continued due diligence to cure same.

    Section 18.02: Except that the Lessor agrees to make reasonable effort to
mitigate damages. Should Lessor elect to re-enter as herein provided, or should
it take possession pursuant to legal proceedings or pursuant to any notice
provided for by law, it may either terminate this Lease or it may, from time to
time, without terminating this Lease, re-let the Leased Premises or any part
thereof for such term or terms and at such rental or rentals and upon such other
terms and conditions as Lessor, in its sole discretion, may deem advisable, with
the right to make alterations and repairs to the Leased Premises. Rentals
received by Lessor from such re-letting shall be applied as follows:

    First, to the payment of any indebtedness, other than rent due hereunder
from Lessee to Lessor, including all damages sustained by Lessor as a result of
the default of Lessee;

    Second, to the payment of rent or other payments required of Lessee for
taxes, insurance, or utilities due and unpaid hereunder;

                                       10
<PAGE>   11

    Third, to the payment of any other sum specified in Section 3.02 hereof;

    Fourth, to the payment of any cost of such re-letting;

    Fifth, to the payment of the cost of any alterations or repairs to the
    Leased Premises;

and the residue, if any, shall be held by Lessor and applied in payment of
further rent, as the same may become due and payable hereunder. Should such
rentals received from such re-letting during any month be less than the amount
agreed to be paid that month by Lessee hereunder, the Lessee shall pay such
deficiency to Lessor. Such deficiency shall be calculated and paid monthly.

    No such re-entry or taking possession of the Leased Premises by Lessor shall
be construed as an election on its part to terminate this Lease unless a written
notice of such intention be given to Lessee or unless the termination thereof be
decreed by a court of competent jurisdiction. Notwithstanding any such
re-letting without termination, Lessor may, at any time thereafter, elect to
terminate this Lease for such previous breach. Should Lessor, at any time,
terminate this Lease for any breach, in addition to any other remedy, it may
recover, from Lessee all damages it may incur by reason of such breach,
including the cost of recovering the Leased Premises.

                                   SECTION 19

                      SURRENDER OF PREMISES ON TERMINATION

    Section 19.01: Whenever this Lease shall be terminated, whether by lapse of
time, forfeiture, or in any other way, Lessee will yield and deliver up the
Leased Premises, including the Building and improvements thereon and the
fixtures and equipment belonging to lessor therein contained, peaceably to
Lessor in as good repair as when taken, except for reasonable and normal wear
and tear and casualty and condemnation.

                                   SECTION 20

                PERFORMANCE BY LESSOR OF THE COVENANTS OF LESSEE

    Section 20.01: Only after fifteen (15) days written notice, except in case
of emergency, Should Lessee at any time fail to do any of the things required to
be done by it under the provisions of this Lease, Lessor, at its option and in
addition to any and all other rights and remedies of Lessor in such event, may
(but shall not be required to) do the same or cause the same to be done, and the
reasonable amount of any money expended by Lessor in connection therewith shall
be due from Lessee to Lessor as additional rent on or before the next rental due
date, bearing interest at the rate of ten (10%) percent per Year from the date
of payment until the repayment thereof to Lessor by Lessee. On default of such
payment, Lessor shall have the same remedies as on default in the payment of
rent.

                                   SECTION 21

                               RIGHTS TO MORTGAGE

    Section 21.01:  Lessor reserves the right to subject and subordinate this
Lease, at all times, to the lien of any mortgage or mortgages now or hereafter
placed upon Lessor's interest in the said Leased Premises and on the land and
Buildings of which the said Leased Premises are a part or upon any Buildings
hereafter placed upon the land of which the Leased Premises form a part. Lessee
covenants and agreed to execute and deliver, upon demand, such further
instrument or instruments subordinating this Lease to the lien of any such
mortgage or mortgages as shall be desired by Lessor and any mortgagees or
proposed mortgage, and hereby irrevocably appoints Lessor the attorney-in-fact
of Lessee to execute in compliance with this Section 21.01 and deliver any such
instrument or instruments for and in the name of Lessee. Lessor acknowledges
that Lessee shall be permitted to remain in possession of the Premises under the
terms of this Lease as long as Lessee is not in default under the terms of this
Lease or any subordination.

                                       11

<PAGE>   12

                                   SECTION 22

                          COVENANTS OF QUIET ENJOYMENT

    Section 22.01: Lessor covenants and agrees to and with Lessee that, at all
times when Lessee is not in default under the terms of and during the term of
this Lease, Lessee's quiet and peaceable enjoyment of the Leased Premises shall
not be disturbed or interfered with by Lessor or any person claiming by,
through, or under Lessor.

                                   SECTION 23

                                SECURITY DEPOSIT

    Section 23.01: Pursuant to Section 3.01 hereof, Lessee shall deposit the sum
of Seven Thousand Five Hundred Dollars ($7,500.00 ) which Lessor agrees to
retain as security for the faithful performance of all of the covenants,
conditions, and agreements of this Lease, but in no event shall the Lessor be
obliged to apply the same upon rents or other charges in arrears, or upon
damages for the Lessee's failure to perform the said covenants, conditions, and
agreements; the Lessor may so apply the security at its option; and the Lessor's
right to the possession of the Premises for nonpayment of rent or for any other
reason shall not in any event be affected by reason of the fact that the Lessor
holds this security. The said sum, if not applied toward the payment of rent or
other charges in arrears, or toward the payment of damages suffered by Lessor by
reason of the Lessee's breach of the covenants, conditions, and agreements of
this Lease, shall be returned to the Lessee when this Lease is terminated,
according to these terms, and in no event is the said security to be returned
until the Lessee has vacated the Premises, delivered possession to the Lessor,
and Lessor has inspected said Premises.

    In the event that the Lessor repossesses itself of the said Premises because
of the Lessee's default or because of the Lessee's failure to carry out the
covenants, conditions, and agreements of the Lease, the Lessor may apply the
said security upon all damages suffered to the date of said repossession and may
retain the said security to apply upon such damages as may be suffered or shall
accrue thereafter by reason of the Lessee's default or breach. The Lessor shall
not be obliged to keep the said security as a separate fund, but may mix the
said security with its own funds and there shall be paid no interest on said
security deposit.

                                   SECTION 24

                                  HOLDING OVER

    Section 24.01: In the event of Lessee herein holding over after the
termination of this Lease, thereafter the tenancy shall be from month to month
in the absence of a written agreement to the contrary subject to all the
conditions, provisions and obligations of this Lease insofar as the same are
applicable to a month to month tenancy, but at a monthly rental of one hundred
Twenty Five percent (125%) of the monthly rental stipulated in Section 3.

                                   SECTION 25

                         REMEDIES NOT EXCLUSIVE; WAIVER

    Section 25.01: Each and every of the rights, remedies, and benefits provided
by this Lease shall be cumulative, and shall not be exclusive of any other of
said rights, remedies and benefits, or of any other rights, remedies, and
benefits allowed by law.

    Section 25.02: One or more waivers of any covenant or condition by Lessor
shall not be construed as a waiver of a further or subsequent breach of the same
covenant of condition, and the consent or approval by Lessor to or of any act by
Lessee requiring Lessor's consent or approval shall not be deemed to waive or
render unnecessary Lessor's consent or approval to or of subsequent similar act
by Lessee.

                                       12

<PAGE>   13

  One or more waivers of any covenant or condition by Lessee shall not be
construed as a waiver of a further or subsequent breach of the same covenant of
condition, and the consent or approval by Lessee to or of any act by Lessor
requiring Lessee's consent or approval shall not be deemed to waive or render
unnecessary Lessee's consent or approval to or of any subsequent similar act by
Lessor.

                                   SECTION 26

                             RIGHT TO SHOW PREMISES

  Section 26.01: The Lessee hereby agrees that, for a period commencing one
hundred eighty (180) days prior to the termination of this Lease, the Lessor may
show the Leased Premises and building to prospective Lessees, and one hundred
eighty (180) days prior to the termination of this Lease, Lessor may display
about said Leased Premises the usual and ordinary "For Lease" signs.

                                   SECTION 27

                               LESSEE'S PROPERTY

  Section 27.01: Lessee shall be responsible for and shall pay before
delinquency all municipal, county, state, and federal taxes assessed during the
term of this Lease against any leasehold interest or personal property of any
kind, owned by or placed in, upon, or about the Leased Premises by the Lessee.

  Section 27.02: The Lessor shall not be responsible or liable to the Lessee
for any loss or damage that may be occasioned by or through the acts or
omissions of persons occupying adjoining Premises, or any part of the Leased
Premises adjacent to or connected with the Leased Premises hereby Leased, or any
part of the Building of which the Leased Premises are a part, or for any loss or
damage resulting to the Lessee or its property from bursting, stoppage, or
leaking of water, gas, sewer, or steam pipes, or for any damage or loss of
property on or within the Leased Premises from any cause whatsoever.

                                   SECTION 28

                                OPTION TO RENEW

  Section 28.01: As long as the Lessee is not in default under this Lease, The
Lessee will have the option to renew this Lease for one additional two (2) year
term, on the same terms and conditions as herein provided for the initial Lease
Term, except that the rental for said renewal term shall be set at fair market
value. The Lessee must execute this option to renew by delivering written notice
thereof to Lessor not less than one hundred and twenty (120) days prior to the
expiration date of the original Lease Term.

                                   SECTION 29

                                   EXPANSION

  Section 29.01: Lessor shall make all reasonable efforts to accommodate
Lessee's request for expansion within the Ann Arbor Commerce Park. Lessee agrees
to give Lessor as much notice as possible concerning Lessee's expansion plans,
so that Lessor can take reasonable steps to determine if the expansion can be
accommodated.

                                   SECTION 30

                                 MISCELLANEOUS

  Section 30.01: This Lease shall be governed by and construed in accordance
with the laws

                                       13
<PAGE>   14

of the State of Michigan. If any provisions of this Lease or the application
thereof to any person or circumstances shall, to any extent, be invalid or
unenforceable, the remainder of this Lease shall not be affected thereby, and
each provision of the Lease shall be valid and enforceable to the fullest extent
permitted by the law.

 Section 30.02: The captions of this Lease are for convenience only, and are
not to be construed as part of this Lease, and shall not be construed as
defining or limiting, in any way, the scope of intent of the provisions hereof.

 Section 30.03: Whenever herein the singular member is used, the same shall
include the plural, and the masculine gender shall include the feminine and
neuter genders.

    Section 30.04: This Lease shall constitute the entire agreement of the
parties hereto; all prior agreements between the parties, whether written or
oral, are merged herein and shall be of no force and effect. This Lease cannot
be changed, modified, or discharged orally, but only by an agreement in writing,
signed by the party against whom enforcement of the change, modification, or
discharge is sought.

    Section 30.05: If Lessor shall fail to perform any covenant, term, or
condition of this Lease upon Lessor's part to be performed, and if as a
consequence of such default Lessee shall recover a money judgment against
Lessor, such judgment shall be satisfied only out of the proceeds of sale
received upon execution of such judgment and levied thereon against the right,
title, and interest of Lessor in the Building and property of which the Leased
Premises are a part and out of the rents or other income from such property
receivable by Lessor, and neither Lessor nor any of the members comprising the
limited liability corporation which is the Lessor herein shall be liable for any
deficiency.

    Section 30.06: In the event any proceedings are brought for the foreclosure
of or in the event of exercise of the power of sale under any mortgage made by
Lessor covering the Leased Premises, Lessee shall, at the option and request of
Purchaser, attorn to the Purchaser upon any such foreclosure or sale and
recognize such Purchaser as the Lessor under this Lease.

    Section 30.07: In the event of any transfer or transfers of Lessor's
interest in the Premises, the transferor shall be automatically relieved of any
and all obligations and liabilities on the part of Lessor accruing from and
after the date of such transfer. Lessor acknowledges that the obligation of the
Lessor under this Lease shall be transferred to the party receiving the interest
of Lessor, as long as the transferee assumes the Lessor's obligations under this
Lease in writing and the Lessee is given written notice.

    Section 30.08: All rights and liabilities herein given to or imposed upon
the respective parties hereto shall extend to and bind the several respective
heirs, executors, administrators, successors, and assigns of the said parties;
and if there shall be more than one Lessee, they shall all be bound jointly and
severally by the terms, covenants, and agreements herein. No rights, however,
shall inure to the benefit of any assignee of Lessee unless the assignment to
such assignee has been approved by Lessor, in writing, as provided in Section
13.01 hereof.

    Section 30.09: This agreement shall inure to the benefit of and be binding
upon the parties hereto, their respective heirs, administrators, executors,
representatives, successors, and permitted assigns.

    Section 30.10: No payment by Lessee or receipt by Lessor of a lesser amount
than the monthly rent herein stipulated shall be deemed to be other than on
account of the earliest stipulated rent, nor shall any endorsement or statement
on any check or any letter accompanying any check or payment as rent be deemed
an accord and satisfaction, and Lessor shall accept such check or payment
without prejudice to Lessor's right to recover the balance of such rent or
pursue and other remedy in this Lease.

                                       14

<PAGE>   15

    Section 30.11: The submission of this Lease for examination does not
constitute a reservation of or option for the Leased Premises. This Lease shall
become effective only upon execution and delivery thereof by Lessor to Lessee.

                                   SECTION 31

                                  ENVIRONMENTAL

    Section 31.01 Lessee shall neither generate, store, discharge nor bury any
toxic or hazardous waste or substance or material or any chemicals or substances
which are either toxic or hazardous at or upon the Leased Premises and Building,
as the terms "toxic" or "hazardous" are defined under all currently existing or
future applicable federal, state or local environmental laws, Lessor and Lessee
understand and acknowledge, however, that Lessee may utilize certain substances
or materials in the Leased Premises incidental to its operations which are or
may be classified as hazardous or toxic substances, such as cleaning solvents,
degreasing agents, adhesives, greases, oils and lubricants, and the like. All
such substances may be utilized and stored in proper containers only temporarily
on the Leased Premises and shall be properly disposed of and transported off the
Leased Premises in compliance with all applicable environmental and other laws
and ordinances. All other substances which are non-toxic or non-hazardous shall
be stored in proper containers. No substances or materials shall be stored
outside of the Building which constitutes the Leased Premises without Landlord's
prior written approval. Tenant shall forever indemnify and hold harmless and
defend Landlord, its successors and assigns and any mortgagee from and against
all loss, damage, claim and expense, including attorney's fees, incurred in
connection with the generation, burial, storage or disposal by Tenant of said
hazardous or toxic substances upon the Premises, and such indemnification shall
survive the expiration or termination of this Lease or any extensions.

    Section 31.02: The Lessee is not responsible for any hazards that exist as
of the date of the Lease commencement as long as same is not caused by Lessee
and/or Lessee's agents or anything that Lessor or its agents or contractors may
cause thereafter.

                                   SECTION 32

                         ADA AND BARRIER FREE STANDARDS

    Section 32.01: To the best of Lessor's knowledge, the building and Leased
Premises does meet local and state barrier free standards and codes and Lessor
has obtained all the required permits so that Lessee can lawfully occupy
the Leased Premises.

                                   SECTION 33

                              LESSOR CONSTRUCTION

    Section 33.01: Lessor agrees to finish the interior of the Leased Premises
as detailed on Exhibit "C" and including the following list of improvements:

         This Lease is contingent upon Lessee's approval of final construction
         drawings.

              OFFICE AREA
              -----------
              Approx. 6706 square feet
              100% heated and air conditioned
              Wall and door layout per Exhibit "C"
              Up-graded carpet in conference room, reception area and demo room
              9" ceiling
              Wet lab room (17'x16') with 34 feet of building standard counter
              top, upper and lower cabinets, and one sink.
              Two (2) additional exterior standard windows on west side
              building.

                                       15
<PAGE>   16
              Optics lab (17'x 15') with 110 and 220 volt power, sink and single
              oversize door into manufacturing area and stub water and drain
              lines. Vertical blinds on windows.

              6' walls as per Exhibit "C"
              Two handicap restrooms to code
              Kitchen with nine feet of upper and lower cabinets, counter top
              and sink, and area from tenant supplied dishwash (with power).

              MANUFACTURING AREA
              ------------------
              Approx. 2225 square feet
              100 % heated and air conditioned
              No ceiling
              One grade level overhead doors
              One Thermo-shield for one overhead door
              400 watt metal halide lighting
              Utility sink

    IN WITNESS WHEREOF, the Lessor and Lessee have executed this Lease as of
the date set forth at the outset hereof.

WITNESS:                          LESSOR:

                                  HIGHLAND INDUSTRIAL  PROPERTIES,
                                  L.L.C., a Michigan Partnership

                                  By: /s/
-----------------------------        ------------------------------
                                  Its:
                                      -----------------------------

                                  LESSEE:

                                  B.I. SYSTEMS CORPORATION
                                  a Delaware Corporation

                                  By: /s/ Jeffery S. Williams
-----------------------------        ------------------------------
                                  Its: President and CEO
                                      -----------------------------

                                       16

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