Document:

<PAGE>
                                                                               .
                                                                               .
                                                                               .

                                                                   EXHIBIT 10.22

                      SCHEDULE OF TIAA SECOND MORTGAGES(1)

<TABLE>
<CAPTION>
                                                     TIAA        MAXIMUM
                                                    MORTGAGE    PRINCIPAL    PRINCIPAL AMOUNT OF
           BORROWER                 PROPERTY         NUMBER      AMOUNT        PROMISSORY NOTES         DATE         TAXPAYER ID
-----------------------------  ------------------  ----------  ------------  -------------------  -----------------  ----------
<S>                            <C>                 <C>         <C>           <C>                  <C>                <C>
LTF USA Real Estate, LLC       Schaumburg, IL      0005005-00  $ 79,619,000  $        44,266,000  June 14, 2001      41-2005273

LTF Michigan Real Estate, LLC  Troy, MI            0005004-00  $ 79,619,000  $        30,803,000  June 14, 2001      41-2005269

LTF Michigan Real Estate, LLC  Novi, MI            0005004-02  $ 79,619,000  $        30,803,000  June 14, 2001      41-2005269

LTF Michigan Real Estate, LLC  Shelby, MI          0005004-01  $ 79,619,000  $        30,803,000  June 14, 2001      41-2005269

LTF USA Real Estate, LLC       Centerville, VA(2)  0005006-00  $ 79,619,000  $        44,266,000  June 14, 2001      41-2005273

LTF USA Real Estate, LLC       Indianapolis, IN    0005007-00  $ 79,619,000  $        44,266,000  June 14, 2001      41-2005273

FCA Real Estate Holdings, LLC  Eagan, MN           0005008-00  $ 79,619,000  $         4,550,000  June 14, 2001      41-1882571

LTF USA Real Estate, LLC       Warrenville, IL     0005005-01  $ 79,619,000  $        44,266,000  June 14, 2001      41-2005273

LTF USA Real Estate, LLC       Algonquin, IL       0005005-02  $ 98,119,000  $        62,766,000  October 26, 2001   41-2005273

LTF USA Real Estate, LLC       Burr Ridge, IL      0005384-01  $143,119,000  $       107,766,000  November 27, 2002  41-2005273

LTF USA Real Estate, LLC       Skokie, IL          0005391     $143,119,000  $       107,766,000  November 27, 2002  41-2005273

LTF USA Real Estate, LLC       Orland Park, IL     0005390     $143,119,000  $       107,766,000  November 27, 2002  41-2005273
</TABLE>

------------------------
(1) Each Mortgage contains certain provisions that are specific to the laws of
the particular state in which the property subject to the Mortgage is located.
Those provisions are not summarized in this Schedule.

(2) This document is entitled "Second Deed of Trust, Assignment of Leases and
Rents, Security Agreement and Fixture Filing Statement."<PAGE>

                                                                   EXHIBIT 10.23

                                 LEASE AGREEMENT
                                 by and between

                        LT FITNESS (DE) QRS 15-53, INC.,
                             a Delaware corporation

                                   as LANDLORD
                                       and
                            LIFE TIME FITNESS, INC.,

                            a Minnesota corporation,

                                    as TENANT

                          Premises: Rochester Hills, MI
                                   Canton, MI

                         Dated as of: September 30, 2003

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                     Page
<S>                                                                                  <C>
1.   Demise of Premises........................................................        1
2.   Certain Definitions.......................................................        1
3.   Title and Condition. Single Lease Transaction.............................        8
4.   Use of Leased Premises. Quiet Enjoyment...................................       11
5.   Term......................................................................       11
6.   Basic Rent................................................................       12
7.   Additional Rent...........................................................       12
8.   Net Lease: Non-Terminability..............................................       13
9.   Payment of Impositions....................................................       14
10.  Compliance with Laws and Easement Agreements: Environmental Matters.......       15
11.  Liens; Recording..........................................................       17
12.  Maintenance and Repair....................................................       18
13.  Alterations and Improvements..............................................       18
14.  Permitted Contests........................................................       20
15.  Indemnification...........................................................       20
16.  Insurance.................................................................       21
17.  Casualty and Condemnation.................................................       24
18.  Termination Events........................................................       26
19.  Restoration...............................................................       28
20.  Procedures Upon Purchase..................................................       29
21.  Assignment and Subletting: Prohibition against Leasehold Financing........       30
22.  Events of Default.........................................................       34
23.  Remedies and Damages Upon Default.........................................       36
24.  Notices...................................................................       39
25.  Estoppel Certificate......................................................       39
26.  Surrender.................................................................       40
27.  No Merger of Title........................................................       40
28.  Books and Records.........................................................       40
</TABLE>

                                       i
<PAGE>

<TABLE>
<S>                                                                                   <C>
29.  Tenant's Property.........................................................       41
30.  Non-Recourse as to Landlord...............................................       43
31.  Financing.................................................................       43
32.  Subordination, Non-Disturbance and Attornment.............................       44
33.  Tax Treatment; Reporting..................................................       44
34.  Prepaid Rent..............................................................       44
35.  Right of First Offer......................................................       46
36.  Determination of Value....................................................       48
37.  Miscellaneous.............................................................       50
</TABLE>

Exhibit "A" - Premises
Exhibit "B" - Machinery and Equipment
Exhibit "C" - Schedule of Permitted Encumbrances
Exhibit "D" - Rent Schedule & Prepaid Rent Schedule
Exhibit "E" - Termination Amounts
Exhibit "F" - Premises Percentage Allocation of Basic Rent

<PAGE>

         LEASE AGREEMENT, made as of this 30th day of September, 2003, between
LT FITNESS (DE) QRS 15-53, INC., a Delaware corporation ("Landlord"), with an
address c/o W. P. Carey & Co. LLC, 50 Rockefeller Plaza, 2nd Floor, New York,
New York 10020, and LIFE TIME FITNESS, INC., a Minnesota corporation ("Tenant")
with an address at 6442 City West Parkway, Eden Prairie, Minnesota 55344.

         In consideration of the rents and provisions herein stipulated to be
paid and performed, Landlord and Tenant hereby covenant and agree as follows:

                  1.       Demise of Premises. Landlord hereby demises and lets
to Tenant, and Tenant hereby takes and leases from Landlord, for the term and
upon the provisions hereinafter specified, the following described property
(hereinafter referred to collectively as the "LEASED PREMISES" and individually
as the "ROCHESTER HILLS PREMISES" and "CANTON PREMISES": (a) the land described
in Exhibit "A" attached hereto, together with the Appurtenances (collectively,
the "LAND"); (b) the buildings containing approximately 278,982 square feet in
the aggregate, structures and other improvements now or hereafter constructed on
the Land (collectively, the "IMPROVEMENTS"); and (c) the fixtures, machinery,
equipment and other property described in Exhibit "B" hereto (collectively, the
"EQUIPMENT").

                  2.       Certain Definitions.

                           "Additional Rent" shall mean Additional Rent as
defined in Paragraph 7.

                           "Adjoining Property" shall mean all sidewalks,
driveways, curbs, gores and vault spaces adjoining any of the Leased Premises
that Landlord is obligated by contract or applicable Law to maintain and/or
repair.

                           "Affected Premises" shall mean the Affected Premises
as defined in Paragraph 18.

                           "Affiliate" of any Person shall mean any Person which
shall (i) control, (ii) be under the control of, or (iii) be under common
control with such Person (the term "control" as used herein shall be deemed to
mean ownership of more than 50% of the outstanding voting stock of a corporation
or other majority equity and control interest if such Person is not a
corporation) and the power to direct or cause the direction of the management or
policies of such Person.

                           "Alterations" shall mean all changes, additions,
improvements or repairs to, all alterations, reconstructions, restorations,
renewals, replacements or removals of and all substitutions or replacements for
any of the Improvements or Equipment, both interior and exterior, structural and
non-structural, and ordinary and extraordinary.

                           "Appurtenances" shall mean all tenements,
hereditaments, easements, rights-of-way, rights, privileges in and to the Land,
including (a) easements over other lands

                                       1
<PAGE>

granted by any Easement Agreement and (b) any streets, ways, alleys, vaults,
gores or strips of land adjoining the Land.

                           "Assignment" shall mean any first lien assignment of
rents and leases from Landlord to a Lender which (a) encumbers any of the Leased
Premises and (b) secures Landlord's obligation to repay a Loan, as the same may
be amended, supplemented or modified from time to time.

                           "Basic Rent" shall mean Basic Rent as defined in
Paragraph 6.

                           "Basic Rent Payment Date" shall mean Basic Rent
Payment Date as defined in Paragraph 6.

                           "Casualty" shall mean any loss of or damage to or
destruction of or which affects the Leased Premises or Adjoining Property.

                           "Commencement Date" shall mean Commencement Date as
defined in Paragraph 5.

                           "Condemnation" shall mean a Taking.

                           "Condemnation Notice" shall mean notice or knowledge
of the institution of or intention to institute any proceeding for Condemnation.

                           "Condominium" shall mean the commercial condominium
regime created pursuant to the Condominium Declaration.

                           "Condominium Declaration" shall mean collectively,
(i) the Master Deed ("Declaration") recorded in Liber 32703, Page 455, Wayne
County Records, and contained in or created under Act 59 of the Public Acts of
1978 as amended and all the terms and provisions thereof, and (ii) the Bylaws
adopted by the Condominium Association pursuant to the Declaration and any rules
or regulations adopted thereunder, in each case, now or hereafter in effect and
as same may be amended, restated, modified or supplemented from time to time.

                           "Condominium Expenses" shall mean the allocated share
of all expenses attributable to the management, operation, maintenance, repair
and security of the Condominium, including the parking and landscaped areas,
which are incurred by or payable by Landlord as owner of the Canton Premises
(including Landlord's undivided interest in the common elements of the
Condominium) pursuant to the Declaration or in accordance therewith, without
mark-up by Landlord.

                           "Costs" of a Person or associated with a specified
transaction shall mean all reasonable out-of-pocket costs and expenses incurred
by such Person or associated with such transaction, including without
limitation, attorneys' fees and expenses.

                                       2
<PAGE>

                           "Default Rate" shall mean the Default Rate as defined
in Paragraph 7(a)(iv).

                           "Easement Agreement" shall mean any conditions,
covenants, restrictions, easements, declarations, licenses and other agreements
listed as Permitted Encumbrances or as may hereafter affect any Related Premises
(other than any Mortgage, Assignment or other document or agreement relating to
a Loan).

                           "Environmental Law" shall mean (i) whenever enacted
or promulgated, any applicable federal, state, foreign and local law, statute,
ordinance, rule, regulation, license, permit, authorization, approval, consent,
court order, judgment, decree, injunction, code, requirement or agreement with
any governmental entity, (x) relating to pollution (or the cleanup thereof), or
the protection of air, water vapor, surface water, groundwater, drinking water
supply, land (including land surface or subsurface), plant, aquatic and animal
life from injury caused by a Hazardous Substance or (y) concerning exposure to,
or the use, containment, storage, recycling, reclamation, reuse, treatment,
generation, discharge, transportation, processing, handling, labeling,
production, disposal or remediation of any Hazardous Substance, Hazardous
Condition or Hazardous Activity, in each case as amended and as now or hereafter
in effect, and (ii) any common law or equitable doctrine (including, without
limitation, injunctive relief and tort doctrines such as negligence, nuisance,
trespass and strict liability) that may impose liability or obligations or
injuries or damages due to or threatened as a result of the presence of,
exposure to, or ingestion of, any Hazardous Substance. The term Environmental
Law includes, without limitation, the federal Comprehensive Environmental
Response Compensation and Liability Act of 1980, the Superfund Amendments and
Reauthorization Act, the federal Water Pollution Control Act, the federal Clean
Air Act, the federal Clean Water Act, the federal Resources Conservation and
Recovery Act of 1976 (including the Hazardous and Solid Waste Amendments to
RCRA), the federal Solid Waste Disposal Act, the federal Toxic Substance Control
Act, the federal Insecticide, Fungicide and Rodenticide Act, the federal
Occupational Safety and Health Act of 1970, the federal National Environmental
Policy Act and the federal Hazardous Materials Transportation Act, each as
amended and as now or hereafter in effect.

                           "Environmental Violation" shall mean (a) any direct
or indirect discharge, disposal, spillage, emission, escape, pumping, pouring,
injection, leaching, release, seepage, filtration or transporting of any
Hazardous Substance at, upon, under, onto or within the Leased Premises, or from
the Leased Premises to the environment, in violation of any Environmental Law or
in excess of any reportable quantity established under any Environmental Law or
which could result in any liability to Landlord, Tenant or Lender, any Federal,
state or local government or any other Person for the costs of any removal or
remedial action or natural resources damage or for bodily injury or property
damage, (b) any deposit, storage, dumping, placement or use of any Hazardous
Substance at, upon, under or within the Leased Premises or which extends to any
Adjoining Property in violation of any Environmental Law or in excess of any
reportable quantity established under any Environmental Law or which could
result in any liability to any Federal, state or local government or to any
other Person for the costs of any removal or remedial action or natural

                                       3
<PAGE>

resources damage or for bodily injury or property damage, (c) the abandonment or
discarding on or about the Leased Premises of any barrels, containers or other
receptacles containing any Hazardous Substances in violation of any
Environmental Laws, (d) any activity, occurrence or condition which could result
in any liability, cost or expense to Landlord or Lender, or which could result
in a creation of a lien on any Related Premises under any Environmental Law or
(e) any violation of or noncompliance with any Environmental Law.

                           "Equipment" shall mean the Equipment as defined in
Paragraph 1, but specifically excluding Tenant's Property.

                           "Event of Default" shall mean an Event of Default as
defined in Paragraph 22(a).

                           "Fair Market Rental Value" shall mean the fair market
rental value of the Leased Premises for the relevant Renewal Term determined in
accordance with the procedure specified in Paragraph 36.

                           "Fair Market Value Date" shall mean the date when the
Fair Market Rental Value is determined in accordance with Paragraph 36.

                           "Federal Funds" shall mean federal or other
immediately available funds which at the time of payment are legal tender for
the payment of public and private debts in the United States of America.

                           "Hazardous Activity" means any activity, process,
procedure or undertaking which directly or indirectly (i) procures, generates or
creates any Hazardous Substance on or about the Leased Premises; (ii) causes or
results in (or threatens to cause or result in) the release, seepage, spill,
leak, flow, discharge or emission of any Hazardous Substance from the Leased
Premises into the environment (including the air, ground water, watercourses or
water systems), (iii) involves the containment or storage of any Hazardous

                           Substance on or about the Leased Premises; or (iv)
would cause any of the Leased Premises or any portion thereof to become a
hazardous waste treatment, recycling, reclamation, processing, storage or
disposal facility within the meaning of any Environmental Law.

                           "Hazardous Condition" means any condition which would
support any claim or liability under any Environmental Law, including the
presence of underground storage tanks.

                           "Hazardous Substance" means (i) any substance,
material, product, petroleum, petroleum product, derivative, compound or
mixture, mineral (including asbestos), chemical, gas, medical waste, or other
pollutant, in each case whether naturally occurring, manmade or the by-product
of any process, that is toxic, harmful or hazardous or acutely hazardous to the
environment or public health or safety and regulated under applicable
Environmental Law, or (ii) any substance supporting a claim under any

                                       4
<PAGE>

Environmental Law, whether or not defined as hazardous as such under any
Environmental Law. Hazardous Substances include, without limitation, any toxic
or hazardous waste, pollutant, contaminant, industrial waste, petroleum or
petroleum-derived substances or waste, radon, radioactive materials, asbestos,
asbestos containing materials, urea formaldehyde foam insulation, lead,
polychlorinated biphenyls.

                           "Impositions" shall mean the Impositions as defined
in Paragraph 9(a). "Improvements" shall mean the Improvements as defined in
Paragraph 1. "Indemnitee" shall mean an Indemnitee as defined in Paragraph 15.
"Initial Term" shall mean Initial Term as defined in Paragraph 5(a).

                           "Insurance Requirements" shall mean the requirements
of all insurance policies maintained in accordance with this Lease.

                           "Land" shall mean the Land as defined in Paragraph 1.

                           "Law" shall mean any applicable constitution,
statute, rule of law, code, ordinance, order, judgment, decree, injunction,
rule, regulation, policy, requirement or administrative or judicial
determination, even if unforeseen or extraordinary, of every duly constituted
governmental authority, court or agency, now or hereafter enacted or in effect.

                           "Lease" shall mean this Lease Agreement.

                           "Lease Year" shall mean, with respect to the first
Lease Year, the period commencing on the Commencement Date and ending at
midnight on the last day of the twelfth (12) full consecutive calendar month
following the month in which the Commencement Date occurred, and each succeeding
twelve (12) month period during the Term.

                           "Leased Premises" shall mean the Leased Premises as
defined in Paragraph 1.

                           "Legal Requirements" shall mean the requirements of
all present and future Laws (including but not limited to Environmental Laws and
Laws relating to accessibility to, usability by, and discrimination against,
disabled individuals) and all Easement Agreements which may be applicable to
Tenant or to any of the Leased Premises or any Related Premises, or to the use,
manner of use, occupancy, possession, operation, maintenance, alteration, repair
or restoration of any of the Leased Premises or any Related Premises, even if
compliance therewith necessitates structural changes or improvements or results
in interference with the use or enjoyment of any of the Leased Premises or any
Related Premises or requires Tenant to carry insurance other than as required by
this Lease.

                           "Lender" shall mean any Person (and its respective
successors and assigns) which may, on or after the date hereof, make a Loan to
Landlord or be the holder of a Note.

                                       5
<PAGE>

                           "Loan" shall mean any first lien mortgage loan made
by one or more Lenders to Landlord, which loan is secured by a Mortgage and an
Assignment and evidenced by a Note.

                           "Monetary Obligations" shall mean Rent and all other
sums payable by Tenant under this Lease to Landlord, to any third party on
behalf of Landlord or to any Indemnitee.

                           "Moody's" shall mean Moody's Investor Services, Inc.

                           "Mortgage" shall mean any first lien mortgage or deed
of trust from Landlord to a Lender which (a) encumbers any of the Leased
Premises and (b) secures Landlord's obligation to repay a Loan, as the same may
be amended, supplemented or modified.

                           "Net Award" shall mean (a) the entire award payable
to Landlord or Lender by reason of a Condemnation whether pursuant to a judgment
or by agreement or otherwise, or (b) the entire proceeds of any insurance
required under clauses (i) (except with respect to Tenant's Property), (ii) (to
the extent payable to Landlord or Lender), (iv) (except with respect to Tenant's
Property), (v) (to the extent of the Rent payable to or for the benefit of
Landlord under this Lease) or (vi) of Paragraph 16(a), as the case may be, less
any expenses incurred by Landlord and Lender in collecting such award or
proceeds.

                           "Note" shall mean any promissory note evidencing
Landlord's obligation to repay a Loan, as the same may be amended, supplemented
or modified.

                           "Partial Casualty" shall mean any Casualty which does
not constitute a Termination Event.

                           "Partial Condemnation" shall mean any Condemnation
which does not constitute a Termination Event.

                           "Permitted Encumbrances" shall mean those covenants,
restrictions, reservations, liens, conditions and easements and other
encumbrances, other than any Mortgage or Assignment or any other document or
agreement relating to a Loan, listed on Exhibit "C" hereto (but such listing
shall not be deemed to revive any such encumbrances that have expired or
terminated or are otherwise invalid or unenforceable).

                           "Person" shall mean an individual, partnership,
association, corporation or other entity.

                           "Premises Percentage Allocation" shall mean the
percentage allocated to each Related Premises in Exhibit "F" to this Lease as
the same may be adjusted in accordance with the formula specified in Exhibit
"F".

                           "Prepaid Rent" shall mean Prepaid Rent as defined in
Paragraph 34.

                                       6
<PAGE>

                           "Prepayment Premium" shall mean any payment required
to be made by Landlord to a Lender under a Note or other document evidencing or
securing a Loan (other than payments of principal and/or interest which Landlord
is required to make under a Note or a Mortgage) solely by reason of any
prepayment or defeasance by Landlord of any principal due under a Note or
Mortgage, and which may take the form of either: (i) a customary and
commercially reasonable "make whole" or yield maintenance clause requiring a
prepayment premium for loans from similar type of lenders to Lender, or (ii) a
customary and commercially reasonable defeasance payment for loans from similar
type of lenders to Lender (such defeasance payment to be an amount equal to the
positive difference between (a) the total amount required to defease a Loan and
(b) the outstanding principal balance of the Loan as of the date of such
defeasance plus reasonable Costs of Landlord and Lender).

                           "Present Value" of any amount shall mean such amount
discounted by a rate of eight percent (8%) per annum.

                           "Prime Rate" shall mean the interest rate per annum
as published, from time to time, in The Wall Street Journal as the "Prime Rate"
in its column entitled "Money Rate". The Prime Rate may not be the lowest rate
of interest charged by any "large U.S. money center commercial banks" and
Landlord makes no representations or warranties to that effect. In the event The
Wall Street Journal ceases publication or ceases to publish the "Prime Rate" as
described above, the Prime Rate shall be the average per annum discount rate
(the "Discount Rate") on ninety-one (91) day bills ("Treasury Bills") issued
from time to time by the United States Treasury at its most recent auction, plus
three hundred (300) basis points. If no such 91-day Treasury Bills are then
being issued, the Discount Rate shall be the discount rate on Treasury Bills
then being issued for the period of time closest to ninety-one (91) days.

                           "Related Premises" shall mean either the Rochester
Premises or the Canton Premises.

                           "Remaining Premises" shall mean the Related Premises
which are not Affected Premises under Paragraph 18.

                           "Renewal Term" shall mean Renewal Term as defined in
Paragraph 5. "Rent" shall mean, collectively, Basic Rent and Additional Rent.
"S&P" shall mean Standard and Poor's Corporation.

                           "Site Assessment" shall mean a Site Assessment as
defined in Paragraph 10(c).

                           "State" shall mean the State of Michigan.

                           "Subsidiary(ies)" of a Person shall means a
corporation, partnership, limited liability company, or other entity in which
that Person directly or indirectly owns or controls the shares of stock having
ordinary voting power to elect a majority of the board of

                                       7
<PAGE>

directors (or appoint other comparable managers) of such corporation,
partnership, limited liability company, or other entity.

                           "Surviving Obligations" shall mean any obligations of
Tenant under this Lease, actual or contingent, which arise on or prior to the
expiration or prior termination of this Lease or which survive such expiration
or termination by their own terms.

                           "Taking" shall mean any taking or damaging of all or
a portion of any of the Leased Premises (i) in or by condemnation or other
eminent domain proceedings pursuant to any Law, general or special, or (ii) by
reason of any agreement with any condemnor in settlement of or under threat of
any such condemnation or other eminent domain proceeding. The Taking shall be
considered to have taken place as of the later of the date actual physical
possession is taken by the condemnor, or the date on which the right to
compensation and damages accrues under the law applicable to the Related
Premises.

                           "Tenant's Property" shall mean Tenant's Property as
defined in Paragraph 29.

                           "Term" shall mean the Term as defined in Paragraph 5.

                           "Termination Amount" shall mean (i) with respect to a
Condemnation the applicable amount set forth in Exhibit "E" and (ii) with
respect to a Casualty the applicable amount set forth in Exhibit "E" plus any
Prepayment Premium which Landlord will be required to pay in prepaying or
defeasing in whole or in part, as applicable, any Loan with proceeds of the
Termination Amount.

                           "Termination Date" shall mean the Termination Date
as defined in Paragraph 18.

                           "Termination Event" shall mean a Termination Event as
defined in Paragraph 18.

                           "Termination Notice" shall mean Termination Notice as
defined in Paragraph 18(a).

                           "Third Party Purchaser" shall mean the Third Party
Purchaser as defined in Paragraph 21 (f).

                           "Warranties" shall mean Warranties as defined in
Paragraph 3(d).

                           "Work" shall mean Work as defined in Paragraph 13(b).

                  3.       Title and Condition. Single Lease Transaction.

                           (a)      The Leased Premises are demised and let
subject to (i) subject to Paragraph 32, the Mortgage and Assignment in effect as
of the Commencement Date, (ii) the rights of any Persons in possession of the
Leased Premises, (iii) the state of title of any of the

                                       8
<PAGE>

Leased Premises as of the Commencement Date, including any Permitted
Encumbrances, (iv) any state of facts which an accurate survey or physical
inspection of the Leased Premises might show, (v) all Legal Requirements,
including any existing violation of any thereof, and (vi) the condition of the
Leased Premises as of the commencement of the Term, without representation or
warranty by Landlord.

                           (b)      Tenant acknowledges that the Leased Premises
are in good condition and repair at the inception of this Lease. LANDLORD LEASES
AND WILL LEASE AND TENANT TAKES AND WILL TAKE THE LEASED PREMISES AS IS WHERE IS
AND WITH ALL FAULTS. TENANT ACKNOWLEDGES THAT LANDLORD (WHETHER ACTING AS
LANDLORD HEREUNDER OR IN ANY OTHER CAPACITY) HAS NOT MADE AND WILL NOT MAKE, NOR
SHALL LANDLORD BE DEEMED TO HAVE MADE, ANY WARRANTY OR REPRESENTATION, EXPRESS
OR IMPLIED, WITH RESPECT TO ANY OF THE LEASED PREMISES, INCLUDING ANY WARRANTY
OR REPRESENTATION AS TO (i) ITS FITNESS, DESIGN OR CONDITION FOR ANY PARTICULAR
USE OR PURPOSE, (ii) THE QUALITY OF THE MATERIAL OR WORKMANSHIP THEREIN, (iii)
THE EXISTENCE OF ANY DEFECT, LATENT OR PATENT, (iv) LANDLORD'S TITLE THERETO AS
OF THE COMMENCEMENT DATE, (v) VALUE, (vi) COMPLIANCE WITH SPECIFICATIONS, (vii)
LOCATION, (viii) USE, (ix) CONDITION, (x) MERCHANTABILITY, (xi) QUALITY, (xii)
DESCRIPTION, (xiii) DURABILITY (xiv) OPERATION, (xv) THE EXISTENCE OF ANY
HAZARDOUS SUBSTANCE, OR (xvi) COMPLIANCE OF THE LEASED PREMISES WITH ANY LAW OR
LEGAL REQUIREMENT; AND ALL RISKS INCIDENT THERETO ARE TO BE BORNE BY TENANT.
TENANT ACKNOWLEDGES THAT THE LEASED PREMISES ARE OF ITS SELECTION AND TO ITS
SPECIFICATIONS AND THAT THE LEASED PREMISES HAVE BEEN INSPECTED BY TENANT AND
ARE SATISFACTORY TO IT. IN THE EVENT OF ANY DEFECT OR DEFICIENCY IN ANY OF THE
LEASED PREMISES OF ANY NATURE, WHETHER LATENT OR PATENT, LANDLORD SHALL NOT HAVE
ANY RESPONSIBILITY OR LIABILITY WITH RESPECT THERETO OR FOR ANY INCIDENTAL OR
CONSEQUENTIAL DAMAGES (INCLUDING STRICT LIABILITY IN TORT). THE PROVISIONS OF
THIS PARAGRAPH 3(b) HAVE BEEN NEGOTIATED, AND ARE INTENDED TO BE A COMPLETE
EXCLUSION AND NEGATION OF ANY WARRANTIES BY LANDLORD, EXPRESS OR IMPLIED, WITH
RESPECT TO ANY OF THE LEASED PREMISES, ARISING PURSUANT TO THE UNIFORM
COMMERCIAL CODE OR ANY OTHER LAW NOW OR HEREAFTER IN EFFECT OR ARISING
OTHERWISE.

                           (c)      Tenant represents to Landlord that Tenant
has examined the title to and condition of the Leased Premises as of the
execution and delivery of this Lease and has found the same to be satisfactory
for the purposes contemplated hereby. Tenant acknowledges that fee simple title
(both legal and equitable) to the Leased Premises is in Landlord and that Tenant
has only the leasehold right of possession and use of the Leased Premises, as
provided herein.

                                       9
<PAGE>

                           (d)      Landlord hereby assigns to Tenant, without
recourse or warranty whatsoever, in conjunction with Landlord, the right to
enforce all assignable warranties, guaranties, indemnities, causes of action and
similar rights (collectively "Warranties") which Landlord may have against any
manufacturer, seller, engineer, contractor or builder in respect of any of the
Leased Premises. Such assignment shall remain in effect until the expiration or
earlier termination of this Lease (unless Tenant or its affiliate or designee
acquires any of the Leased Premises, in which instance such assignment shall
become permanent and irrevocable with respect to such Leased Premises),
whereupon such assignment shall cease and all of the Warranties shall
automatically revert to Landlord. In confirmation of such reversion Tenant shall
execute and deliver promptly any certificate of other document reasonably
required by Landlord. Landlord shall also retain the right to enforce any
Warranties upon the occurrence of an Event of Default.

                           (e)      LANDLORD AND TENANT AGREE THAT IT IS THEIR
MUTUAL INTENT TO CREATE, AND THAT THIS LEASE CONSTITUTES, A MASTER LEASE WITH
RESPECT TO EACH AND EVERY PARCEL OF LAND, IMPROVEMENTS INCLUDED IN ANY AND ALL
OF THE LEASED PREMISES (WHEREVER LOCATED), THAT THIS LEASE IS NOT INTENDED AND
SHALL NOT BE CONSTRUED TO BE SEPARATE LEASES AND THAT ALL THE TERMS AND
CONDITIONS HEREOF SHALL GOVERN THE RIGHTS AND OBLIGATIONS OF LANDLORD AND TENANT
WITH RESPECT THERETO.

                           (f)      TENANT, ON BEHALF OF ITSELF AND ANY TRUSTEE
OR LEGAL REPRESENTATIVE (UNDER THE FEDERAL BANKRUPTCY CODE OR ANY SIMILAR STATE
INSOLVENCY PROCEEDING) EXPRESSLY ACKNOWLEDGES AND AGREES THAT, NOTWITHSTANDING
THE PROVISIONS OF PARAGRAPH 18 HEREOF OR ANY OTHER PROVISION IN THIS LEASE TO
THE CONTRARY, IT IS THE EXPRESS INTENT OF LANDLORD AND TENANT TO CREATE, AND
THAT THIS LEASE CONSTITUTES, A SINGLE LEASE WITH RESPECT TO EACH AND EVERY
PARCEL OF LAND, IMPROVEMENTS AND EQUIPMENT INCLUDED IN EACH AND ALL OF THE
RELATED PREMISES (WHEREVER LOCATED) AND SHALL NOT BE (OR BE DEEMED TO BE)
DIVISIBLE OR SEVERABLE INTO SEPARATE LEASES FOR ANY PURPOSE WHATSOEVER, AND
TENANT, ON BEHALF OF ITSELF AND ANY SUCH TRUSTEE OR LEGAL REPRESENTATIVE, HEREBY
WAIVES ANY RIGHT TO CLAIM OR ASSERT A CONTRARY POSITION IN ANY ACTION OR
PROCEEDING; IT BEING FURTHER UNDERSTOOD AND AGREED BY TENANT THAT THE PERCENTAGE
ALLOCATION OF BASIC RENT AS SET FORTH ON EXHIBIT "F" HEREOF ARE INCLUDED TO
PROVIDE A FORMULA FOR RENT ADJUSTMENT AND LEASE TERMINATION UNDER CERTAIN
CIRCUMSTANCES AND AS AN ACCOMMODATION TO TENANT. ANY EVENT OF DEFAULT HEREUNDER
IN CONNECTION WITH ANY RELATED PREMISES SHALL BE DEEMED TO BE AN EVENT OF
DEFAULT WITH RESPECT TO THE ENTIRE LEASED PREMISES (WHEREVER LOCATED). THE
FOREGOING AGREEMENTS AND WAIVERS BY TENANT IN THIS PARAGRAPH 3(e) ARE MADE AS A
MATERIAL INDUCEMENT

                                       10
<PAGE>

TO LANDLORD TO ENTER INTO THE TRANSACTION CONTEMPLATED BY THIS LEASE AND THAT,
BUT FOR THE FOREGOING AGREEMENTS AND WAIVERS BY TENANT, LANDLORD WOULD NOT
CONSUMMATE THIS LEASE TRANSACTION.

                  4.       Use of Leased Premises. Quiet Enjoyment.

                           (a)      Tenant may occupy and use the Leased
Premises for any commercial purpose (except for any noxious or manufacturing use
and uses prohibited by the Condominium Declaration) and for any ancillary uses
incidental thereto and for no other purpose without the prior written consent of
Landlord. Tenant shall not use or occupy or permit any of the Leased Premises to
be used or occupied, nor do or permit anything to be done in or on any of the
Leased Premises, in a manner which would or might (i) violate any Law, Legal
Requirement or Permitted Encumbrance, (ii) make void or voidable or cause any
insurer to cancel any insurance required by this Lease, or make it impossible to
obtain any such insurance at commercially reasonable rates, (iii) cause
structural injury to any of the Improvements or (iv) constitute a public or
private nuisance or waste.

                           (b)      Subject to the provisions hereof, so long as
no Event of Default has occurred and is continuing, Tenant shall quietly hold,
occupy and enjoy the Leased Premises throughout the Term, without any hindrance,
ejection or molestation by Landlord or any Person claiming by, through, or under
Landlord with respect to matters that arise after the date hereof, provided that
Landlord or its agents may enter upon and examine any of the Leased Premises
during normal business hours, upon not less than twenty-four (24) hours' prior
written notice to Tenant (except in the case of any emergency, in which event
only such notice as shall be reasonable under the circumstances shall be
required), and in a manner which does not unreasonably interfere with Tenant's
business or operations, for the purpose of inspecting the Leased Premises,
verifying compliance or non-compliance by Tenant with its obligations hereunder
and the existence or non-existence of an Event of Default or event which with
the passage of time and/or notice would constitute an Event of Default, showing
the Leased Premises to prospective Lenders and purchasers, making any repairs
and taking such other action with respect to the Leased Premises as is permitted
by any provision hereof.

                  5.       Term.

                           (a)      Subject to the provisions hereof, Tenant
shall have and hold the Leased Premises for an initial term (the "Initial Term")
(such Initial Term, as extended or renewed in accordance with the provisions
hereof, being called the "Term") commencing on the date hereof (the
"Commencement Date") and ending on October 31, 2023.

                           (b)      Provided that if, on or prior to the
Expiration Date or any other Renewal Date (as hereinafter defined) this Lease
shall not have been terminated pursuant to any provision hereof, then on the
Expiration Date and on the tenth (10th) and twentieth (20th) anniversaries of
the Expiration Date (the Expiration Date and each such anniversary being
referred to herein as a "Renewal Date"), the Term shall be deemed to have been
automatically extended for an additional period of ten (10) years (each such
extension, a

                                       11
<PAGE>

"Renewal Term"), unless Tenant shall notify Landlord in writing at least
eighteen (18) months prior to the next Renewal Date that Tenant is terminating
this Lease as of the next Renewal Date. Any such extension of the Term shall be
subject to all of the provisions of this Lease, as the same may be amended,
supplemented or modified (except that, in the case of the third Renewal Term,
Tenant shall not have the right to any additional Renewal Terms).

                           (c)      If Tenant exercises its option pursuant to
Paragraph 5(b) not to have the Term automatically extended, then Landlord shall
have the right during the remainder of the Term then in effect and, in any
event, Landlord shall have the right during the last year of the Term, to show
any of the Leased Premises to prospective purchasers or tenants or their agents
during normal business hours upon not less than twenty-four (24) hours' written
notice to Tenant and in a manner which does not unreasonably interfere with
Tenant's business or operations.

                  6.       Basic Rent. Tenant shall pay to Landlord, as annual
rent for the Leased Premises during the Term, the amounts determined in
accordance with Exhibit "D" hereto ("Basic Rent"), payable in advance for the
next three full calendar months and commencing on the twenty-fifth day of
October, 2003, and thereafter on the same day of each January, April, July and
October during the Term (each such day being a "Basic Rent Payment Date"). Each
such rental payment shall be made to Landlord in Federal Funds on each Basic
Rent Payment Date pursuant to wire transfer instructions delivered to Tenant
from time to time and/or to such one or more other Persons, pursuant to wire
transfer instructions delivered to Tenant from time to time at such addresses
and in such proportions as Landlord may direct by fifteen (15) days' prior
written notice to Tenant (in which event Tenant shall give Landlord notice of
each such payment concurrent with the making thereof).

                  7.       Additional Rent.

                           (a)      Tenant shall pay and discharge, as
additional rent (collectively, "Additional Rent"):

                                    (i)      except as otherwise specifically
provided herein, all costs and expenses of Tenant and Landlord which are
incurred in connection or associated with (A) the ownership, use, non-use,
occupancy, monitoring, possession, operation, condition, design, construction,
maintenance, alteration, repair or restoration of any of the Leased Premises,
(B) the performance of any of Tenant's obligations under this Lease, (C) the
exercise or enforcement by Landlord, its successors and assigns, of any of its
rights under this Lease in connection with an Event of Default, (D) any
amendment to or modification or termination of this Lease made at the request of
Tenant, (E) Costs of Landlord's counsel and reasonable internal Costs of
Landlord incurred in connection with any act undertaken by Landlord (or its
counsel) at the request of Tenant, any act of Landlord performed on behalf of
Tenant in connection with an Event of Default or the review and monitoring of
compliance by Tenant with the teens of this Lease in connection with an Event of
Default, including compliance with applicable Law, (F) all costs and fees
associated with the wire

                                       12
<PAGE>

transfers of Rent payments, (G) any Condominium Expenses, and (H) any other
items specifically required to be paid by Tenant under this Lease;

                                    (ii)     after the date all or any portion
of any installment of Basic Rent is due and not paid by the applicable Basic
Rent Payment Date, an amount (the "Late Charge") equal to four three (3%) of the
amount of such unpaid installment or portion thereof to reimburse Landlord for
its cost and inconvenience incurred as a result of Tenant's delinquency,
provided, however, that with respect to the first late payment of all or any
portion of any installment of Basic Rent in any Lease Year, the Late Charge
shall not be due and payable unless the Basic Rent has not been paid within five
(5) days' following notice thereof from Landlord to Tenant that such installment
is due and payable;

                                    (iii)    a sum equal to any late charge in
excess of the amount payable under clause (ii) above for that portion of the
Basic Rent paid to the Lender as scheduled installments of principal and
interest, any default interest in excess of amounts payable under clause (iv)
below for that portion of the Basic Rent paid to the Lender as scheduled
installments of principal and interest, and fees of Lender's counsel, which are
payable by Landlord to any Lender under any Note by reason of Tenant's late
payment or non-payment of Basic Rent or by reason of an Event of Default; and

                                    (iv)     interest at the rate (the "Default
Rate") of five percent (5%) over the Prime Rate per annum on the following sums
until paid in full: (A) all overdue installments of Basic Rent from the
respective due dates thereof, and (B) all overdue amounts of Additional Rent
relating to obligations which Landlord shall have paid on behalf of Tenant
pursuant to this Lease, from the date of payment thereof by Landlord.

                  (b)      Tenant shall pay and discharge (i) any Additional
Rent referred to in Paragraph 7(a)(i) when the same shall become due, provided
that amounts which are billed to Landlord or any third party, but not to Tenant,
shall be paid within thirty (30) days after Landlord's demand for payment
thereof, and (ii) any other Additional Rent, within thirty (30) days after
Landlord's demand for payment thereof.

                           (c)      In no event shall amounts payable under
Paragraph 7(a)(ii), (iii) and (iv) or elsewhere in this Lease exceed the maximum
amount permitted by applicable Law.

                  8.       Net Lease: Non-Terminability.

                           (a)      This is a net lease and all Monetary
Obligations shall be paid without notice or demand and without set-off
counterclaim, recoupment, abatement, suspension, deferment, diminution,
deduction, reduction or defense (collectively, a "Set-Off"), except as otherwise
provided in this Lease.

                           (b)      This Lease and the rights of Landlord and
the obligations of Tenant hereunder shall not be affected by any event or for
any reason or cause whatsoever foreseen or unforeseen, except as otherwise
provided in this Lease.

                                       13
<PAGE>

                           (c)      The obligations of Tenant hereunder shall be
separate and independent covenants and agreements, all Monetary Obligations
shall continue to be payable in all events (or, in lieu thereof, Tenant shall
pay amounts equal thereto), and the obligations of Tenant hereunder shall
continue unaffected unless the requirement to pay or perform the same shall have
been terminated or abated pursuant to an express provision of this Lease. All
Rent payable by Tenant hereunder shall constitute "rent" for all purposes
(including Section 502(b)(6) of the Federal Bankruptcy Code).

                           (d)      Except as otherwise expressly provided
herein, Tenant shall have no right and hereby waives all rights which it may
have under any Law (i) to quit, terminate or surrender this Lease or any of the
Leased Premises, or (ii) to any Set-Off of any Monetary Obligations.

                  9.       Payment of Impositions.

                           (a)      Subject to Paragraph 9(b) below, Tenant
shall, before interest or penalties are due thereon, pay directly to the
applicable governmental authority, all taxes (including real and personal
property, franchise, sales, use, gross receipts and rent taxes), all charges
payable pursuant to any Easement Agreement, all assessments and levies, all
permit, inspection and license fees, all rents and charges for water, sewer,
utility and communication services relating to any of the Leased Premises, and
all other public charges whether of a like or different nature, even if
unforeseen or extraordinary, imposed upon or assessed against (i) Tenant, (ii)
Tenant's possessory interest in the Leased Premises, (iii) any of the Leased
Premises, or (iv) Landlord as a result of or arising in respect of the
ownership, occupancy, leasing, use or possession of any of the Leased Premises,
any activity conducted on any of the Leased Premises, or the Rent (collectively,
the "Impositions"); provided, that nothing herein shall obligate Tenant to pay
(A) income, excess profits or other taxes of Landlord (or Lender) which are
determined on the basis of Landlord's (or Lender's) net income or net worth
(unless such taxes are in lieu of or a substitute for any other tax, assessment
or other charge upon or with respect to the Leased Premises which, if it were in
effect, would be payable by Tenant under the provisions hereof or by the terms
of such tax, assessment or other charge), (B) any estate, inheritance,
succession, gift or similar tax imposed on Landlord or (C) any capital gains tax
imposed on Landlord in connection with the sale of the Leased Premises to any
Person. Landlord shall have the right to require Tenant to pay, together with
scheduled installments of Basic Rent, the amount of the gross receipts or rent
tax, if any, payable with respect to the amount of such installment of Basic
Rent. If any Imposition may be paid in installments without penalty, Tenant
shall have the option to pay such Imposition in installments. Tenant shall be
liable only for Impositions or installments thereof which become due and payable
during the Term. Tenant shall prepare and file all tax reports required by
governmental authorities which relate to the Impositions. Tenant shall deliver
to Landlord (1) copies of all settlements and notices pertaining to the
Impositions which may be issued by any governmental authority within ten (10)
days after Tenant's receipt thereof, (2) receipts for payment of all taxes
required to be paid by Tenant hereunder within thirty (30) days after the due
date thereof and (3) receipts for payment of any other Impositions within ten
(10) days after Landlord's request therefor.

                                       14
<PAGE>

                           (b)      If Landlord is required by a Lender, Tenant
shall pay to Landlord such amounts (each an "Escrow Payment") quarterly or as
required by such Lender (but not more often than quarterly) so that there shall
be in an escrow account an amount sufficient to pay the Escrow Charges (as
hereinafter defined) as they become due. As used herein, "Escrow Charges" shall
mean: (i) real estate taxes and assessments due and payable during the Term on
or with respect to the Leased Premises or payments in lieu thereof, and premiums
on any insurance required by this Lease; and (ii) any reserves for capital
improvements, deferred maintenance, repair and/or tenant improvements and
leasing commissions required by any Lender following the occurrence of an Event
of Default. Landlord shall reasonably determine the amount of the Escrow Charges
(it being agreed that if required by a Lender, such amount shall equal any
corresponding escrow installments required to be paid by Landlord) and the
amount of each Escrow Payment. Escrow Charges for real estate taxes and
assessments and insurance premiums may be commingled with other funds of
Landlord or other Persons and no interest thereon shall be due or payable to
Tenant. Escrow Charges listed in Paragraph 9(b)(ii) above shall be held in a
separate interest bearing money market or similar account and all interest
thereon shall become part of and applied to Escrow Payments. Landlord shall
apply the Escrow Payments to the payment of the Escrow Charges in such order or
priority as Landlord shall determine or as required by Law but in no event later
than when same are due and payable. If at any time the Escrow Payments
theretofore paid to Landlord shall be insufficient for the payment of the Escrow
Charges, Tenant, within ten (10) days after Landlord's demand therefor, shall
pay the amount of the deficiency to Landlord. At the expiration or earlier
termination of this Lease, all Escrow Payments not applied as provided in this
Paragraph 9(b) shall be promptly refunded to Tenant, provided there is not then
an uncured Event of Default existing under this Lease.

                  10.      Compliance with Laws and Easement Agreements:
Environmental Matters.

                           (a)      Tenant shall, at its expense, comply with
and conform to, and cause the Leased Premises and any other Person occupying any
part of the Leased Premises to comply with and conform to, all Insurance
Requirements and Legal Requirements (including all applicable Environmental
Laws). Tenant shall not at any time (i) cause, permit or suffer to occur any
Environmental Violation or (ii) permit any sublessee, assignee or other Person
occupying the Leased Premises under or through Tenant to cause, permit or suffer
to occur any Environmental Violation and, at the request of Landlord or Lender,
Tenant shall promptly undertake any reasonable and appropriate response action
to correct any existing Environmental Violation, however immaterial, and (iii)
without the prior written consent of Landlord and Lender, permit any drilling or
exploration for or extraction, removal, or production of any minerals from the
surface or the subsurface of the Land, regardless of the depth thereof or the
method of mining or extraction thereof. Any and all reports prepared for or by
Landlord with respect to the Leased Premises shall be for the sole benefit of
Tenant, Landlord and Lender and no other Person shall have the right to rely on
any such reports.

                           (b)      Tenant, at its sole cost and expense, will
at all times promptly and faithfully abide by, discharge and perform all of the
covenants, conditions and

                                       15
<PAGE>

agreements contained in any Easement Agreement on the part of Landlord or the
occupier to be kept and performed thereunder. Neither Landlord nor Tenant will
alter, modify, amend or terminate any Easement Agreement, give any consent or
approval thereunder, or enter into any new Easement Agreement without, in each
case, prior written consent of the other party. Landlord will not consent to or
vote in favor of any modification or amendment to the Condominium Declaration
(or any regulations or rules promulgated thereunder) which affects the use or
occupancy of the Canton Premises (or the cost of operations thereat) or any
parking areas or allocation thereof, or any Impositions on the Canton Premises
without the prior written consent of Tenant, which consent shall not be
unreasonably withheld or delayed.

                           (c)      Upon not less than five (5) days' prior
written notice from Landlord, Tenant shall permit such persons as Landlord may
designate ("Site Reviewers") to visit the Leased Premises during normal business
hours and in a manner which does not unreasonably interfere with Tenant's
business or operations and perform, as agents of Tenant, environmental site
investigations and assessments ("Site Assessments") on the Leased Premises in
any of the following circumstances: (i) in connection with any sale, financing
or refinancing of the Leased Premises, (ii) within the six month period prior to
the expiration of the Term, (iii) if required by Lender or the terms of any
credit facility to which Landlord is bound, (iv) if an Event of Default exists,
or (v) at any other time that, in the opinion of Landlord or Lender, a
reasonable basis exists to believe that an Environmental Violation or any
condition that could reasonably be expected to result in any Environmental
Violation exists. Such Site Assessments may include both above and below the
ground testing for Environmental Violations and such other tests as may be
necessary, in the opinion of the Site Reviewers, to conduct the Site
Assessments. Tenant shall supply to the Site Reviewers such historical and
operational information regarding the Leased Premises as may be reasonably
requested by the Site Reviewers to facilitate the Site Assessments, and shall
make available for meetings with the Site Reviewers appropriate personnel having
knowledge of such matters. The cost of performing and reporting Site Assessments
shall be paid by Landlord; provided, however, in the case of a Site Assessment
being performed as a result of an event enumerated in (ii), (iv) or (v) above,
Tenant shall bear the cost of such Site Assessment.

                           (d)      If an Environmental Violation occurs or is
found to exist and, in Landlord's reasonable judgment, the cost of remediation
of, or other response action with respect to, the same is likely to exceed
$500,000, Tenant shall provide to Landlord, within ten (10) days after
Landlord's request therefor, adequate financial assurances that Tenant will
effect such remediation in accordance with applicable Environmental Laws. Such
financial assurances shall be a bond or letter of credit satisfactory to
Landlord in form and substance and in an amount equal to or greater than
Landlord's reasonable estimate, based upon a Site Assessment performed pursuant
to Paragraph 10(c), of the anticipated cost of such remedial action.

                           (e)      If Tenant fails to comply with any
requirement of any Environmental Law in connection with any Environmental
Violation which occurs or is

                                       16
<PAGE>

found to exist, Landlord shall have the right (but no obligation) to take any
and all actions as Landlord shall deem necessary or advisable in order to cure
such Environmental Violation.

                           (f)      Tenant shall notify Landlord within ten (10)
days after becoming aware of any Environmental Violation (or alleged
Environmental Violation) or noncompliance with any of the covenants contained in
this Paragraph 10 and shall forward to Landlord within ten (10) days after
receipt thereof copies of all orders, reports, notices, permits, applications or
other communications relating to any such violation or noncompliance.

                           (g)      All future leases, subleases or concession
agreements relating to the Leased Premises entered into by Tenant shall contain
covenants of the other party thereto which are identical to the covenants
contained in Paragraph 10(a).

                           (h)      Landlord acknowledges that upon its
acquisition of the Canton Premises, Landlord may, subject to the timing and
qualification provisions of the Condominium Declaration, become entitled to hold
a seat on the Board of Directors of the Condominium Association pursuant to the
terms of the Condominium Declaration; Landlord agrees that Landlord shall
appoint an officer of Tenant first-named herein as its individual representative
on such board as long as no Event of Default exists.

                           (i)      Tenant shall, within one hundred eighty
(180) days, either (i) provide documentation reasonably satisfactory to Landlord
regarding closure of well at Rochester Hills Premises or (ii) cause same to be
closed pursuant to applicable Law and provide the documentation referenced
above.

                  11.      Liens; Recording.

                           (a)      Tenant shall not, directly or indirectly,
create or permit to be created or to remain and shall promptly discharge or
remove any lien, levy or encumbrance on any of the Leased Premises or, to the
extent caused by Tenant, on any Rent or any other sums payable by Tenant under
this Lease, other than any Mortgage or Assignment or any other document or
agreement executed in connection with any Loan, the Permitted Encumbrances and
any mortgage, lien, encumbrance or other matter created by or resulting from any
act or omission of Landlord or any Person claiming by, through or under
Landlord. NOTICE IS HEREBY GIVEN THAT LANDLORD SHALL NOT BE LIABLE FOR ANY
LABOR, SERVICES OR MATERIALS FURNISHED OR TO BE FURNISHED TO TENANT OR TO ANYONE
HOLDING OR OCCUPYING ANY OF THE LEASED PREMISES THROUGH OR UNDER TENANT, AND
THAT NO MECHANICS' OR OTHER LIENS FOR ANY SUCH LABOR, SERVICES OR MATERIALS
SHALL ATTACH TO OR AFFECT THE INTEREST OF LANDLORD IN AND TO ANY OF THE LEASED
PREMISES. LANDLORD MAY AT ANY TIME POST ANY NOTICES REQUIRED UNDER APPLICABLE
LAW ON THE LEASED PREMISES REGARDING SUCH NON-LIABILITY OF LANDLORD.

                                       17
<PAGE>

                           (b)      Landlord and Tenant shall execute, deliver
and record, file or register (collectively, "record") all such instruments as
may be required or permitted by any present or future Law in order to evidence
the respective interests of Landlord and Tenant in any of the Leased Premises,
and shall cause a memorandum of this Lease (or, if such a memorandum cannot be
recorded, this Lease), and any supplement hereto or thereto, to be recorded in
such manner and in such places as may be required or permitted by any present or
future Law in order to protect the validity and priority of this Lease.

                  12.      Maintenance and Repair.

                           (a)      Tenant shall at all times maintain each
Related Premises and the Adjoining Property in as good repair as each is in on
the date hereof and fit to be used for their intended use in accordance with the
better of the practices generally recognized as then acceptable by other
companies in its industry or observed by Tenant with respect to the other real
properties owned or operated by it, and, in the case of the Equipment, in as
good mechanical condition as it was on the later of the date hereof or the date
of its installation, except for ordinary wear and tear. Tenant shall promptly
make all Alterations of every kind and nature, whether foreseen or unforeseen,
which may be required to comply with the foregoing requirements of this
Paragraph 12(a). Landlord shall not be required to make any Alteration, whether
foreseen or unforeseen, or to maintain either of the Related Premises or
Adjoining Property in any way, and Tenant hereby expressly waives any right
which may be provided for in any Law now or hereafter in effect to make
Alterations at the expense of Landlord or to require Landlord to make
Alterations. Any Alteration made by Tenant pursuant to this Paragraph 12 shall
be made in conformity with the provisions of Paragraph 13.

                           (b)      If any Improvement, now or hereafter
constructed, shall (i) encroach upon any setback or any property, street or
right-of-way adjoining any of the Leased Premises, or (ii) violate the
provisions of any Easement Agreement, Tenant shall, within a reasonable time
after receiving notice or otherwise acquiring knowledge thereof, either (A)
obtain from all necessary parties waivers or settlements of all claims,
liabilities and damages resulting from each such encroachment, violation,
hindrance, obstruction or impairment, whether the same shall affect Landlord,
Tenant or both, or (B) take such action as shall be reasonably necessary to
remove all such encroachments, hindrances or obstructions and to end all such
violations or impairments, including, if necessary, making Alterations.

                  13.      Alterations and Improvements.

                           (a)      Tenant shall have the right, without having
obtained the prior written consent of Landlord or Lender and provided that no
Event of Default then exists, (i) to make any and all non-structural Alterations
or a series of related non-structural Alterations to any Related Premises that
are decorative in nature and consistent with Tenant's normal business practice
of upgrading the "look and feel" of other real properties owned or operated by
it (collectively, the "Decorative Alterations"), (ii) to make non-structural
Alterations or a

                                       18
<PAGE>

series of related non-structural Alterations (other than Decorative Alterations)
that, as to any such Alterations or series of related Alterations, do not cost
in excess of $350,000 with respect to any Related Premises, and (iii) to install
Equipment in the Improvements or accessions to the Equipment that, as to such
Equipment or accessions, do not cost in excess of $350,000, so long as at the
time of construction or installation of any such Equipment or Alterations no
Event of Default exists and the value and utility of the Leased Premises is not
diminished thereby. If the cost of any non-structural Alterations (other than
Decorative Alterations), series of related nonstructural Alterations (other than
Decorative Alterations), Equipment or accessions thereto is in excess of
$350,000 or if Tenant desires to make structural Alterations to any Related
Premises, the prior written approval of Landlord and Lender shall be required.
Tenant shall not construct upon the Land any additional buildings without having
first obtained the prior written consent of Landlord and Lender. Landlord shall
have the right to require Tenant to remove any Alterations except for Decorative
Alterations, those Alterations required by Law or for which Landlord has agreed
in writing, or is deemed to have approved pursuant to the following sentence,
that removal will not be required. If Tenant desires not to remove any
Alterations at the expiration of the Term, Tenant shall provide to Landlord
written notice specifying the Alterations for which it is requesting agreement
that removal will not be required (which notice may be given by Tenant at any
time during the Term (including, without limitation, at the time Tenant seeks
any required approval from Landlord pursuant to this Paragraph 13)). If Landlord
does not disapprove such request by Tenant within fifteen (15) days of receipt
of such notice, such approval shall be deemed given. Notwithstanding anything to
the contrary in this Lease, in no event shall Tenant be required to remove any
Decorative Alterations.

                           (b)      If Tenant makes any Alterations pursuant to
this Paragraph 13 or as required by Paragraph 12 or 17 (such Alterations and
actions being hereinafter collectively referred to as "Work"), then (i) the
market value of the Leased Premises shall not be lessened by any such Work, (ii)
all such Work shall be performed by Tenant in a good and workmanlike manner,
(iii) all such Work shall be expeditiously completed in compliance with all
Legal Requirements, (iv) all such Work shall comply with the requirements of all
insurance policies required to be maintained by Tenant hereunder, (v) if any
such Work involves the replacement of Equipment or parts thereto, all
replacement Equipment or parts shall have a value and useful life equal to the
greater of (A) the value and useful life on the date hereof of the Equipment
being replaced or (B) the value and useful life of the Equipment being replaced
immediately prior to the occurrence of the event which required its replacement
(assuming such replaced Equipment was then in the condition required by this
Lease), (vi) Tenant shall promptly discharge or remove all liens filed against
any of the Leased Premises arising out of such Work, (vii) Tenant shall procure
and pay for all permits and licenses required in connection with any such Work,
(viii) all such Work shall be the property of Landlord and shall be subject to
this Lease, and Tenant shall execute and deliver to Landlord any document
requested by Landlord evidencing the assignment to Landlord of all estate,
right, title and interest (other than the leasehold estate created hereby) of
Tenant or any other Person thereto or therein, and (ix) Tenant shall comply, to
the extent requested by Landlord or required by this Lease, with the provisions
of Paragraphs 12(a) and 19(a), whether or not such Work involves restoration of
the Leased Premises.

                                       19
<PAGE>

                  14.      Permitted Contests. Notwithstanding any other
provision of this Lease, Tenant shall not be required to (a) pay any Imposition,
(b) discharge or remove any lien referred to in Paragraph 11 or 13, (c) take any
action with respect to any encroachment, violation, hindrance, obstruction or
impairment referred to in Paragraph 12(b), or (d) comply with any Law or
Easement Agreement with respect to the Leased Premises (such non-compliance with
the terms hereof being hereinafter referred to collectively as "Permitted
Violations") and may dispute or contest the same, so long as at the time of such
non-compliance no Event of Default exists and so long as Tenant shall contest,
in good faith, the existence, amount or validity thereof, the amount of the
damages caused thereby, or the extent of its or Landlord's liability therefor by
appropriate proceedings which shall operate during the pendency thereof to
prevent or stay (i) the collection of, or other realization upon, the Permitted
Violation so contested, (ii) the sale, forfeiture or loss of any of the Leased
Premises or any Rent to satisfy or to pay any damages caused by any Permitted
Violation, (iii) any interference with the use or occupancy of any of the Leased
Premises, (iv) any interference with the payment of any Rent, or (v) the
cancellation or increase in the rate of any insurance policy or a statement by
the carrier that coverage will be denied. Tenant shall provide Landlord security
which is satisfactory, in Landlord's reasonable judgment, to assure that such
Permitted Violation is corrected, including all Costs, interest and penalties
that may be incurred or become due in connection therewith. While any
proceedings which comply with the requirements of this Paragraph 14 are pending
and the required security is held by Landlord, Landlord shall not have the right
to correct any Permitted Violation thereby being contested unless Landlord is
required by Law to correct such Permitted Violation and Tenant's contest does
not prevent or stay such requirement as to Landlord. Each such contest shall be
promptly and diligently prosecuted by Tenant to a final conclusion, except that
Tenant, so long as the conditions of this Paragraph 14 are at all times complied
with, has the right to attempt to settle or compromise such contest through
negotiations. Tenant shall pay any and all losses, judgments, decrees and Costs
in connection with any such contest and shall, promptly after the final
determination of such contest, fully pay and discharge the amounts which shall
be levied, assessed, charged or imposed or be determined to be payable therein
or in connection therewith, together with all penalties, fines, interest and
Costs thereof or in connection therewith, and perform all acts the performance
of which shall be ordered or decreed as a result thereof. No such contest shall
subject Landlord to the risk of any criminal liability.

                  15.      Indemnification.

                           (a)      Tenant shall pay, protect, indemnify,
defend, save and hold harmless Landlord, Lender and all other Persons described
in Paragraph 30 (each an "Indemnitee") from and against any and all liabilities,
losses, damages (including punitive damages), penalties, Costs (including
attorneys' fees and costs), causes of action, suits, claims, demands or
judgments of any nature whatsoever, howsoever caused, without regard to the form
of action and whether based on strict liability, gross negligence, negligence or
any other theory of recovery at law or in equity, arising from (i) any matter
pertaining to the use, non-use, occupancy, operation, management, condition,
design, construction, maintenance, repair or restoration of any of the Leased
Premises or Adjoining Property,

                                       20
<PAGE>

except to the extent arising in connection with the gross negligence or willful
misconduct of Landlord or any Person described in Paragraph 30, (ii) any
casualty in any manner arising from any of the Leased Premises or Adjoining
Property, whether or not Indemnitee has or should have knowledge or notice of
any defect or condition causing or contributing to said casualty, except to the
extent arising in connection with the gross negligence or willful misconduct of
Landlord or any Person described in Paragraph 30, (iii) any violation by Tenant
of any provision of this Lease, the Condominium Declaration, any contract or
agreement to which Tenant is a party, any Legal Requirement or any Permitted
Encumbrance or any encumbrance Tenant consented to, or (iv) any alleged,
threatened or actual Environmental Violation, including (A) liability for
response costs and for costs of removal and remedial action incurred by the
United States Government, any state or local governmental unit or any other
Person, or damages from injury to or destruction or loss of natural resources,
including the reasonable costs of assessing such injury, destruction or loss,
incurred pursuant to Section 107 of CERCLA, or any successor section or act or
provision of any similar state or local Law, (B) liability for costs and
expenses of abatement, correction or cleanup, fines, damages, response costs or
penalties which arise from the provisions of any of the other Environmental Laws
and (C) liability for personal injury or property damage arising under any
statutory or common-law tort theory, including damages assessed for the
maintenance of a public or private nuisance or for carrying on of a dangerous
activity.

                           (b)      In case any action or proceeding is brought
against any Indemnitee by reason of any such claim, (i) Tenant may, except in
the event of a conflict of interest or a dispute between Tenant and any such
Indemnitee or during the continuance of an Event of Default, retain its own
counsel and defend such action (it being understood that Landlord may employ
counsel of its choice to monitor the defense of any such action, the reasonable
cost of which shall be paid by Tenant) and (ii) such Indemnitee shall notify
Tenant to resist or defend such action or proceeding by retaining counsel
reasonably satisfactory to such Indemnitee, and such Indemnitee will cooperate
and assist in the defense of such action or proceeding if reasonably requested
to do so by Tenant. In the event of a conflict of interest or dispute or during
the continuance of an Event of Default, Landlord shall have the right to select
counsel, and the cost of such counsel shall be paid by Tenant.

                           (c)      The obligations of Tenant under this
Paragraph 15 shall survive any termination, expiration or rejection in
bankruptcy of this Lease with respect to matters that existed, arose or occurred
prior to such termination, expiration or rejection.

                  16.      Insurance.

                           (a)      Tenant shall obtain, pay for and maintain
the following insurance on or in connection with the Leased Premises:

                                    (i)      Insurance against all risk of
physical loss or damage to the Improvements and Equipment as provided under
"Special Causes of Loss" form coverage, and including customarily excluded
perils of hail, windstorm, flood coverage for any Related Premises located in a
designated flood plain under applicable Law, earthquake

                                       21
<PAGE>

coverage for any Related Premises located in a designated earthquake zone under
applicable Law and, to the extent required by Lender, terrorism insurance, in
amounts not less than the actual replacement cost of the Improvements and
Equipment; provided that, if Tenant's insurance company is unable or unwilling
to include any of all of such excluded perils, Tenant shall have the option of
purchasing coverage against such perils from another insurer on a "Difference in
Conditions" form or through a stand-alone policy. Such policies shall contain
Replacement Cost and Agreed Amount Endorsements and "Law and Ordinance" coverage
(at full replacement cost). Such policies and endorsements shall contain
deductibles not more than $50,000 per occurrence.

                                    (ii)     Commercial General Liability
Insurance and Business Automobile Liability Insurance (including Non-Owned and
Hired Automobile Liability) against claims for personal and bodily injury, death
or property damage occurring on, in or as a result of the use of the Leased
Premises, in an amount not less than $11,000,000 per occurrence annual
aggregate, on a claims occurrence basis.

                                    (iii)    Workers' compensation insurance in
the amount required by applicable Law and employers' liability insurance
covering all persons employed by Tenant in connection with any work done on or
about any of the Leased Premises.

                                    (iv)     Comprehensive Boiler and
Machinery/Equipment Breakdown Insurance on any of the Equipment or any other
equipment on or in the Leased Premises, in an amount not less than $5,000,000
per accident for damage to property (and which may be carried as part of the
coverage required under clause (i) above or pursuant to a separate policy or
endorsement). Either such Boiler and Machinery policy or the Special Causes of
Loss policy required in clause (i) above shall include at least not less
$1,000,000 per incidence for Off Premises Service Interruption, and not less
than $100,000 per incidence for Expediting Expenses, Ammonia Contamination, and
Hazardous Materials Clean-Up Expense and may contain a deductible not to exceed
$50,000.

                                    (v)      Business Income/Extra Expense
Insurance at limits sufficient to cover 100% of the period of indemnity not less
than eighteen (18) months from time of loss. Such insurance shall name Landlord
as loss payee (but only with respect to Rent payable to or for the benefit of
the Landlord under this Lease), and Tenant shall receive a dollar-for-dollar
credit against Rent due hereunder for any amounts received by Landlord under any
such policy.

                                    (vi)     During any period in which
substantial Alterations at the Leased Premises are being undertaken, builder's
risk insurance covering the total completed value, including all hard and soft
costs (which shall include business interruption coverage) with respect to the
Improvements being constructed, altered or repaired (on a completed value,
non-reporting basis), replacement cost of work performed and equipment, supplies
and materials furnished in connection with such construction, alteration or
repair of Improvements or Equipment, together with such other endorsements as
Landlord may

                                       22
<PAGE>

reasonably require, and general liability, worker's compensation and automobile
liability insurance with respect to the Improvements being constructed, altered
or repaired.

                                    (vii)    Such other insurance (or other
terms with respect to any insurance required pursuant to this Paragraph 16,
including without limitation amounts of coverage, deductibles, ratings, form of
mortgagee clause) on or in connection with any Related Premises as Landlord or
Lender may reasonably require, which at the time is usual and commonly obtained
in connection with properties similar in type of building size, use and location
to the applicable Related Premises or in connection with loans similar to the
Loan.

                           (b)      The insurance required by Paragraph 16(a)
shall be written by companies having a Best's rating of A:X or above and a
claims paying ability rating of A or better by Standard & Poor's Rating
Services, a division of the McGraw Hill Companies, Inc. or equivalent rating
agency approved by Landlord and Lender in their sole discretion and are
authorized to write insurance policies by, the State Insurance Department (or
its equivalent) for the states in which the Leased Premises are located. The
insurance policies (i) shall be for such terms as Landlord may reasonably
approve and (ii) shall be in amounts sufficient at all times to satisfy any
coinsurance requirements thereof. If said insurance or any part thereof shall
expire, be withdrawn, become void, voidable, unreliable or unsafe for any
reason, including a breach of any condition thereof by Tenant or the failure or
impairment of the capital of any insurer, or if for any other reason whatsoever
said insurance shall become reasonably unsatisfactory to Landlord, Tenant shall
immediately obtain new or additional insurance reasonably satisfactory to
Landlord.

                           (c)      Each insurance policy referred to in clauses
(i), (iv), (v) and (vi) of Paragraph 16(a) shall contain standard
non-contributory mortgagee clauses in favor of and acceptable to Lender. Each
policy required by any provision of Paragraph 16(a), except clause (iii)
thereof, shall provide that it may not be cancelled, substantially modified or
allowed to lapse on any renewal date except after thirty (30) days' prior
written notice to Landlord and Lender.

                           (d)      Tenant shall pay as they become due all
premiums for the insurance required by Paragraph 16(a), shall renew or replace
each policy and deliver to Landlord evidence of the payment of the full premium
therefor or installment then due at least ten (10) days prior to the expiration
date of such policy, and shall promptly deliver to Landlord all original
certificates of insurance evidencing such coverages or, if required by Lender,
original or certified policies. All certificates of insurance (including
liability coverage) provided to Landlord and Lender shall be on ACORD Form 27
(or its equivalent).

                           (e)      Anything in this Paragraph 16 to the
contrary notwithstanding, any insurance which Tenant is required to obtain
pursuant to Paragraph 16(a) may be carried under a "blanket" policy or policies
covering other properties of Tenant or under an "umbrella" policy or policies
covering other liabilities of Tenant, as applicable; provided that, such blanket
or umbrella policy or policies otherwise comply with the provisions of this

                                       23
<PAGE>

Paragraph 16, and upon request, Tenant shall provide to Landlord a Statement of
Values which may be reviewed annually and shall be amended to the extent
determined necessary by Landlord based on revised Replacement Cost Valuations.
The original or a certified copy of each such blanket or umbrella policy shall
promptly be delivered to Landlord upon Landlord's request.

                           (f)      Tenant shall not carry separate insurance
concurrent in form or contributing in the event of a Casualty with that required
in this Paragraph 16 unless (i) Landlord and Lender are included therein as
named insureds, with loss payable as provided herein, and (ii) such separate
insurance complies with the other provisions of this Paragraph 16. Tenant shall
immediately notify Landlord of such separate insurance and shall deliver to
Landlord the original policies or certified copies thereof.

                           (g)      Each policy (other than workers'
compensation coverage) shall contain an effective waiver by the carrier against
all claims for payment of insurance premiums against Landlord and shall contain
a full waiver of subrogation against the Landlord.

                           (h)      The insurance referred to in Paragraphs
16(a)(i), 16(a)(iv) and 16(a)(vi) shall name Landlord as loss payee and Lender
as loss payee and mortgagee, and Tenant as its interest may appear. The
insurance referred to in Paragraph 16(a)(ii) shall name Landlord and Lender as
additional insureds, and the insurance referred to in Paragraph 16(a)(v) shall
name Landlord as insured and Lender and Landlord as loss payee to the extent of
the Rent payable to or for the benefit of Landlord as its interest appears under
the Lease. The proceeds of any insurance required under Paragraph 16(a) shall be
payable as follows:

                                    (i)      proceeds payable under clauses
(ii), (iii) and (iv) of Paragraph 16(a) and proceeds attributable to the general
liability coverage of Builder's Risk insurance under clause (vi) of Paragraph
16(a) shall be payable to the Person entitled to receive such proceeds; and

                                    (ii)     proceeds of insurance required
under clause (i) of Paragraph 16(a) and proceeds attributable to Builder's Risk
insurance (other than its general liability coverage provisions) under clause
(vi) of Paragraph 16(a) shall be payable to Landlord or Lender and applied as
set forth in Paragraph 17 or, if applicable, Paragraph 18.

                  17.      Casualty and Condemnation.

                           (a)      If any Casualty to either of the Related
Premises occurs the insurance proceeds for which are reasonably estimated by
Tenant to be equal to or in excess of One Hundred Thousand Dollars ($100,000),
Tenant shall give Landlord and Lender immediate notice thereof. So long as (i)
no Event of Default exists and (ii) Tenant has not given a Termination Notice to
Landlord, Tenant is hereby authorized to adjust, collect and compromise all
claims under any of the insurance policies required by Paragraph 16(a) (except
public liability insurance claims payable to a Person other than Tenant,
Landlord or Lender) and to execute and deliver on behalf of Landlord all
necessary proofs of loss,

                                       24
<PAGE>

receipts, vouchers and releases required by the insurers and Landlord shall have
the right to join with Tenant therein. Any final adjustment, settlement or
compromise of any such claim which is reasonably estimated by Landlord to result
in proceeds in excess of $100,000, shall be subject to the reasonable prior
written approval of Landlord, and, with respect thereto, Landlord shall have the
right to prosecute or contest, or to require Tenant to prosecute or contest, any
such claim, adjustment, settlement or compromise. If any final adjustment,
settlement or compromise of any such claim is reasonably estimated by Landlord
to result in proceeds of less than or equal to $100,000 and so long as no Event
of Default exists and Tenant has not given a Termination Notice to Landlord,
then such adjustment, settlement or compromise shall not require the approval of
Landlord. If an Event of Default exists, Tenant shall not be entitled to adjust,
collect or compromise any such claim or to participate with Landlord in any
adjustment, collection and compromise of the Net Award payable in connection
with a Casualty. Tenant agrees to sign, upon the request of Landlord, all such
proofs of loss, receipts, vouchers and releases. Each insurer is hereby
authorized and directed to make payment under said policies, including return of
unearned premiums, directly to Landlord or, if required by the Mortgage, to
Lender instead of to Landlord and Tenant jointly, and Tenant hereby appoints
each of Landlord and Lender as Tenant's attorneys-in-fact to endorse any draft
therefor. The rights of Landlord under this Paragraph 17(a) shall be extended to
Lender if and to the extent that any Mortgage so provides.

                           (b)      Tenant, immediately upon receiving a
Condemnation Notice, shall notify Landlord and Lender thereof. So long as no
Event of Default exists, Tenant is authorized to collect, settle and compromise
the amount of any Net Award and Landlord shall have the right to join with
Tenant herein. If an Event of Default exists, Landlord shall be authorized to
collect, settle and compromise the amount of any Net Award and Tenant shall not
be entitled to participate with Landlord in any Condemnation proceeding or
negotiations under threat thereof or to contest the Condemnation or the amount
of the Net Award therefor. No agreement with any condemnor in settlement or
under threat of any Condemnation shall be made by Tenant without the written
consent of Landlord. Subject to the provisions of this Paragraph 17(b), Tenant
hereby irrevocably assigns to Landlord any award or payment to which Tenant is
or may be entitled by reason of any Condemnation, whether the same shall be paid
or payable for Tenant's leasehold interest hereunder or otherwise; but nothing
in this Lease shall impair Tenant's right to any award or payment on account of
Tenant's Property, moving expenses or loss of business, if available, to the
extent that and so long as (i) Tenant shall have the right to make, and does
make, a separate claim therefor against the condemnor and (ii) such claim does
not in any way reduce either the amount of the award otherwise payable to
Landlord for the Condemnation of Landlord's fee interest in the applicable
Related Premises or the amount of the award (if any) otherwise payable for the
Condemnation of Tenant's leasehold interest hereunder. The rights of Landlord
under this Paragraph 17(b) shall also be extended to Lender if and to the extent
that any Mortgage so provides.

                           (c)      If any Partial Casualty (whether or not
insured against) or Partial Condemnation shall occur to any Related Premises,
this Lease shall continue, notwithstanding such event, and there shall be no
abatement or reduction of any Monetary

                                       25
<PAGE>

Obligations. Promptly after such Partial Casualty or Partial Condemnation,
Tenant, as required in Paragraph 12(a), shall commence and diligently continue
to restore the applicable Related Premises as nearly as possible to their value,
condition and character immediately prior to such event (assuming such Related
Premises to have been in the condition required by this Lease, together with
such Alterations as shall be permitted or approved pursuant to Paragraph 13). So
long as no Event of Default exists, any Net Award paid to or on behalf of
Landlord under Paragraph 16(a)(i), (iv) or (vi) which is up to and including
$350,000 shall be paid by Landlord to Tenant and Tenant shall restore the
applicable Related Premises in accordance with the requirements of Paragraph
13(b) of this Lease. Any Net Award paid to or on behalf of Landlord under
Paragraph 16(a)(i), (iv) or (vi) which is in excess of $350,000 shall (unless
such Casualty resulting in the Net Award is a Termination Event) be made
available by Landlord (or Lender if the terms of the Mortgage so require) to
Tenant for the restoration of any of the applicable Related Premises pursuant to
and in accordance with and subject to the provisions of Paragraph 19 hereof. If
any Casualty or Condemnation which is not a Partial Casualty or Partial
Condemnation shall occur, Tenant shall comply with the terms and conditions of
Paragraph 18.

                  18.      Termination Events.

                           (a)      If either (i) all of any Related Premises
shall be taken by a Taking, or (ii) any substantial portion of any Related
Premises shall be taken by a Taking and Tenant certifies and covenants to
Landlord that it will forever abandon operations at the Related Premises, or
(iii) all or any substantial portion of any Related Premises shall be totally or
substantially damaged or destroyed by a Casualty, Tenant does not elect to treat
such Casualty as a Partial Casualty and to restore the applicable Related
Premises in accordance with Paragraph 17(c) above and Tenant certifies and
covenants to Landlord that it will forever abandon operations at the Related
Premises (any one or all of the Related Premises described in the above clauses
(i), (ii) and (iii) above being hereinafter referred to as the "Affected
Premises" and each of the events described in the above clauses (i), (ii) and
(iii) shall hereinafter be referred to as a "Termination Event"), then (x) in
the case of (i) above, Tenant shall be obligated, within thirty (30) days after
Tenant receives a Condemnation Notice, and (y) in the case of (ii) and (iii)
above, Tenant shall have the option, within thirty (30) days after Tenant
receives a Condemnation Notice or thirty (30) days after the Casualty, as the
case may be, to give to Landlord written notice in the form described in
Paragraph 18(b) of the Tenant's election to terminate this Lease as to the
Affected Premises (a "Termination Notice"). If Tenant elects under clause (y)
above not to give Landlord a Termination Notice, then Tenant shall rebuild or
repair the Leased Premises in accordance with Paragraphs 17 and 19.

                           (b)      A Termination Notice shall contain:

                                    (i)      in the event of a Termination
Notice pursuant to an event described in Paragraphs 18(a)(i) or (ii) above (a
"Condemnation Termination Notice"), (A) notice of Tenant's intention to
terminate this Lease as to the Affected Premises on the first Basic Rent Payment
Date which occurs at least thirty (30) days after delivery of the

                                       26
<PAGE>

Condemnation Termination Notice (the "Termination Date"), and (B) if the
Termination Event is an event described in Paragraph 18(a)(ii), the
certification and covenants described therein; and

                                    (ii)     in the event of a Termination
Notice pursuant to an event described in Paragraph 18(a)(iii) above (a "Casualty
Termination Notice"), (A) notice of Tenant's intention to terminate this Lease
as to the Affected Premises on the first Basic Rent Payment Date which occurs at
least thirty (30) days after delivery of the Casualty Termination Notice (also,
a "Termination Date"), (B) a binding and irrevocable offer of Tenant to pay to
Landlord the Termination Amount, and (C) the certification and covenants
described in Paragraph 18(a)(iii).

                           (c)      If (x) Landlord shall reject such offer by
Tenant to pay to Landlord the Termination Amount as to the Affected Premises
pursuant to a Casualty Termination Notice above by written notice to Tenant (a
"Rejection"), which Rejection shall contain the written consent of Lender to
Landlord's rejection of Tenant's offer to pay the Termination Amount, not later
than thirty (30) days after Landlord's receipt of the Casualty Termination
Notice, or (y) Tenant delivers a Condemnation Termination Notice, then this
Lease shall terminate as to the Affected Premises on the Termination Date;
provided, that if Tenant has not satisfied all Monetary Obligations which have
arisen as to the Affected Premises (collectively, "Remaining Obligations") on or
prior to the Termination Date, then Landlord may, at its option, extend the date
on which this Lease may terminate as to the Affected Premises to a date which is
no later than the first Basic Rent Payment Date after the Termination Date on
which Tenant has satisfied all Remaining Obligations. Upon such termination (i)
all obligations of Tenant hereunder as to the Affected Premises shall terminate
except for any Surviving Obligations, (ii) Tenant shall immediately vacate and
shall have no further right, title or interest in or to any of the Affected
Premises, and (iii) the Net Award shall be retained by Landlord.

                           (d)      Unless Tenant shall have received a
Rejection (as consented to by Lender as aforesaid) not later than the thirtieth
(30th) day following Landlord's receipt of the Casualty Termination Notice,
Landlord shall be conclusively deemed to have accepted such offer from Tenant to
pay the Termination Amount. If such offer from Tenant to pay the Termination
Amount is accepted or deemed accepted by Landlord then, on the Termination Date,
Tenant shall pay to Landlord the Termination Amount and all Remaining
Obligations and, if requested by Tenant, Landlord shall convey to Tenant or its
designee the Affected Premises or the remaining portion thereof, if any, all in
accordance with Paragraph 20.

                           (e)      In the event of the termination of this
Lease as to the Affected Premises as hereinabove provided, this Lease shall
remain in full force and effect as to the Remaining Premises; provided, that the
Basic Rent for the Remaining Premises to be paid after such termination shall be
the Basic Rent otherwise payable hereunder with respect to the Leased Premises
multiplied by the percentage set forth on Exhibit "F" for the Remaining
Premises.

                                       27
<PAGE>

                  19.      Restoration.

                           (a)      If any Net Award is in excess of $350,000,
Landlord (or Lender if required by any Mortgage) shall hold the Net Award in a
fund (the "Restoration Fund") and disburse amounts from the Restoration Fund
only in accordance with the following conditions:

                                    (i)      prior to commencement of
restoration, the architects, contracts, contractors, plans and specifications
and a budget for the restoration which shall have been approved by Landlord and
which may, at Tenant's option, provide for Alterations and other upgrades to the
Leased Premises, a so-called "cost savings" provision in favor of Tenant (which
shall remain for Tenant's sole benefit), an overhead cost allocation, and/or
supervision and/or development fees to Tenant or any affiliate of Tenant;

                                    (ii)     at the time of any disbursement, no
Event of Default shall exist and no mechanics' or materialmen's liens shall have
been filed against any of the Leased Premises and remain undischarged or
uncontested in accordance with Paragraph 14;

                                    (iii)    disbursements shall be made from
time to time in an amount not exceeding the cost of the Work completed since the
last disbursement, upon receipt of (A) satisfactory evidence, including
architects' certificates, of the stage of completion, the estimated total cost
of completion and performance of the Work to date in a good and workmanlike
manner in accordance with the contracts, plans and specifications, (B) partial
waivers of liens, (C) contractors' sworn statements as to completed Work and the
cost thereof for which payment is requested, (D) a satisfactory bring down of
title insurance and (E) other reasonable and customary evidence of cost and
payment so that Landlord and Lender can verify that the amounts disbursed from
time to time are represented by Work that is completed, in place and free and
clear of mechanics' and materialmen's lien claims;

                                    (iv)     each request for disbursement shall
be accompanied by a certificate of an officer of Tenant, describing the Work for
which payment is requested, stating the cost incurred in connection therewith,
stating that Tenant has not previously received payment for such Work and, upon
completion of the Work, also stating that the Work has been fully completed and
complies with the applicable requirements of this Lease;

                                    (v)      any construction contract or
agreement in connection with the restoration shall provide for a 10% retainage
until the Work to be performed under such contract or agreement shall have been
satisfactorily completed;

                                    (vi)     If the Restoration Fund is held by
Landlord, the Restoration Fund shall not be commingled with Landlord's other
funds and shall bear interest at a rate agreed to by Landlord and Tenant; and

                                    (vii)    such other reasonable and customary
conditions as Landlord or Lender may impose.

                                       28
<PAGE>

                           (b)      Prior to commencement of restoration and at
any time during restoration, if the estimated cost of completing the restoration
Work free and clear of all liens, as determined by Landlord, exceeds the amount
of the Net Award available for such restoration, the amount of such excess
shall, upon demand by Landlord, be paid by Tenant to Landlord to be added to the
Restoration Fund. Any sum so added by Tenant which remains in the Restoration
Fund upon completion of restoration shall be refunded to Tenant. For purposes of
determining the source of funds with respect to the disposition of funds
remaining after the completion of restoration, the Net Award shall be deemed to
be disbursed prior to any amount added by Tenant.

                           (c)      If any sum remains in the Restoration Fund
after completion of the restoration and any refund to Tenant pursuant to
Paragraph 19(b), such sum shall be retained by Landlord or, if required by a
Note or Mortgage, paid by Landlord to a Lender, provided, however, Landlord
acknowledges and agrees that it is the intention of the parties that, subject to
the other provisions of this Paragraph 19, the full amount of the Restoration
Fund shall be made available to Tenant for the performance of the work
contemplated under Paragraph 17(c).

                  20.      Procedures Upon Purchase.

                           (a)      If either of the Related Premises are
purchased by Tenant pursuant to any provision of this Lease, Landlord need not
convey any better title thereto than that which was conveyed to Landlord, and
Tenant or its designee shall accept such title, subject, however, only to the
Permitted Encumbrances and to all other exceptions and restrictions on, against
or relating to any of the applicable Related Premises and to all applicable
Laws, but free of the lien of and security interest created by any mortgage or
assignment of leases and rents and any other liens, exceptions and restrictions
on, against or relating to the applicable Related Premises which have been
created by or resulted from acts of Landlord after the date of this Lease,
unless the same are Permitted Encumbrances or customary utility easements
benefiting the applicable Related Premises or were created with the concurrence
of Tenant or as a result of a default by Tenant under this Lease.

                           (b)      Upon the date fixed for any such purchase of
either of the Related Premises pursuant to Paragraph 18 (any such date the
"Purchase Date"), Tenant shall pay to Landlord, or to any Person to whom
Landlord directs payment, the Termination Amount therefor specified herein, in
Federal Funds, less a credit for any Net Award received and retained by Landlord
or a Lender, and Landlord shall deliver to Tenant (i) a special warranty deed
which describes the premises being conveyed and conveys the title thereto as
provided in Paragraph 20(a), (ii) such other instruments as shall be necessary
to transfer to Tenant or its designee any other property (or rights to any Net
Award not yet received by Landlord or a Lender) then required to be sold by
Landlord to Tenant pursuant to this Lease and (iii) any Net Award received by
Landlord or Lender, not credited to Tenant against the Termination Amount;
provided, that if any accrued Monetary Obligations remain outstanding on such
date, then Landlord may deduct from the Net Award the amount of such Monetary
Obligations; and further provided, that if any event has occurred which, in

                                       29
<PAGE>

Landlord's reasonable judgment, is likely to subject any Indemnitee to any
liability which Tenant is required to indemnify against pursuant to Paragraph
15, then an amount shall be deducted from the Net Award which, in Landlord's
reasonable judgment, is sufficient to satisfy such liability, which amount shall
be deposited in an escrow account with a financial institution reasonably
satisfactory to Landlord and Tenant pending resolution of such matter. If on the
Purchase Date any Monetary Obligations remain outstanding and no Net Award is
payable to Tenant by Landlord or the amount of such Net Award is less than the
amount of the accrued Monetary Obligations, then Tenant shall pay to Landlord on
the Purchase Date the amount of such accrued Monetary Obligations. Upon the
completion of such purchase, this Lease and all obligations and liabilities of
Tenant hereunder with respect to the applicable Related Premises (but not with
respect to the Remaining Premises) shall terminate, except any Surviving
Obligations.

                           (c)      If the completion of such purchase shall be
delayed after (i) the Termination Date, in the event of a purchase pursuant to
Paragraph 18 or, (ii) the date scheduled for such purchase, in the event of a
purchase under any other provision of this Lease then Rent shall continue to be
due and payable until completion of such purchase.

                           (d)      Any prepaid Monetary Obligations paid to
Landlord shall be prorated as of the Purchase Date, and the prorated unapplied
balance shall be deducted from the Termination Amount due to Landlord; provided,
that no apportionment of any Impositions shall be made upon any such purchase.

                  21.      Assignment and Subletting: Prohibition against
Leasehold Financing.

                           (a)      Except as otherwise expressly provided to
the contrary in this Paragraph 21, Tenant may not (i) assign this Lease,
voluntarily or involuntarily, whether by operation of law or otherwise
(including through merger or consolidation) to any Person other than to a Person
which is and continues throughout the Term to be a wholly-owned subsidiary of
Tenant or a Credit Entity, or (ii) sublet any of the Leased Premises at any time
to any other Person other than to a wholly-owned Subsidiary of Tenant or to a
Credit Entity, without the prior written consent of Landlord, which consent may
be granted or withheld by Landlord in accordance with the provisions of
Paragraphs 21(b) or 21(c) below, as applicable, and subject, in each case, to
the provisions of Paragraphs 21(j) and 21(k) below. Any purported sublease or
assignment in violation of this Paragraph 21 including an Affiliate transaction
in violation of the provisions of Paragraphs 21(j) or 21(k) below shall be null
and void. In addition, notwithstanding anything to the contrary contained in
this Paragraph 21, Tenant shall not have the right to assign this Lease
(voluntarily or involuntarily, whether by operation of law or otherwise), or
sublet any of the Leased Promises to any Person at any time that an Event of
Default shall exist. As used herein, a "Credit Entity" shall mean any Person
that immediately following such assignment or subletting and having given effect
thereto will have a publicly traded unsecured senior debt rating of "Baa3" or
better from Moody's or a rating of "BBB-" or better from S&P and is not on
"Negative Credit Watch" by S&P or Moody's (or, if such Person does not then have
rated debt, a determination that by either of such rating agencies its unsecured
senior debt would be so rated by such agency),

                                       30
<PAGE>

and in the event both such rating agencies cease to furnish such ratings, then a
comparable rating by any rating agency acceptable to Landlord and Lender.

                           (b)      If Tenant desires to assign this Lease,
whether by operation of law or otherwise, to a Person ("Non-Preapproved
Assignee") that is not a wholly-owned subsidiary of Tenant or a Credit Entity or
(each a "Non-Preapproved Assignment") then Tenant shall, not less than ninety
(90) days prior to the date on which it desires to make a Non-Preapproved
Assignment, submit to Landlord and Lender information regarding the following
with respect to the Non-Preapproved Assignee (collectively, the "Review
Criteria"): (A) credit, (B) capital structure, (C) management, (D) operating'
history, (E) proposed use of the Leased Premises and (F) risk factors associated
with the proposed use of the Leased Premises by the Non-Preapproved Assignee,
taking into account factors such as environmental concerns, product liability
and the like. Landlord and Lender shall review such information and shall
approve or disapprove the Non-Preapproved Assignee applying prudent business
judgment no later than the thirtieth (30th) day following receipt of all such
information, and Landlord and Lender shall be deemed to have acted reasonably in
granting or withholding consent if such grant or disapproval is based on their
review of the Review Criteria applying prudent business judgment. If a response
is not received by Tenant by the expiration of such thirty (30) day period, such
non-Preapproved Assignee shall be deemed disapproved.

                           (c)      Notwithstanding anything to the contrary in
this Lease, Tenant shall have the right, upon thirty (30) days prior written
notice to Landlord and Lender, but without the necessity of Landlord's or
Leader's consent, to enter into (i) one or more subleases or licenses with any
Affiliate or Credit Entity and (ii) one or more subleases or licenses with any
third parties that demise, in the aggregate, up to, but not to exceed
thirty-three percent (33%) of the gross leasable area of the Improvements at any
Related Premises, with no consent or approval of Landlord being required or
necessary (each, a "Preapproved Sublet"). Other than pursuant to Preapproved
Sublets, at no time during the Term shall subleases exist for more than
thirty-three percent (33%) of the gross leasable area of the Improvements at any
Related Premises without the prior written consent of Landlord, which consent
shall be granted or withheld based on a review of the Review Criteria as they
relate to the proposed sublessee and the terms of the proposed sublease.
Landlord and Lender shall be deemed to have acted reasonably in granting or
withholding consent if such grant or disapproval is based on their review of the
Review Criteria applying prudent business judgment.

                           (d)      If Tenant assigns all its rights and
interest under this Lease, the assignee under such assignment shall expressly
assume all the obligations of Tenant hereunder, actual or contingent, including
obligations of Tenant which may have arisen on or prior to the date of such
assignment, by a written instrument delivered to Landlord at the time of such
assignment and shall also provide any certification reasonably required by
Landlord related to the USA Patriot Act. Each sublease of any of the Leased
Premises shall (A) be expressly subject and subordinate to this Lease and any
Mortgage encumbering the Leased Premises; (B) not extend beyond the then current
Term minus one day; (C) terminate

                                       31
<PAGE>

upon any termination of this Lease, unless Landlord elects in writing, to cause
the sublessee to attorn to and recognize Landlord as the lessor under such
sublease, whereupon such sublease shall continue as a direct lease between the
sublessee and Landlord upon all the terms and conditions of such sublease; and
(D) bind the sublessee to all covenants contained in Paragraph 4(a), 10 and 12
with respect to subleased premises to the same extent as if the sublessee were
the Tenant. No assignment or sublease shall affect or reduce any of the
obligations of Tenant hereunder, and all such obligations of Tenant shall
continue in full force and effect as obligations of a principal and not as
obligations of a guarantor, as if no assignment or sublease had been made,
except that, if Tenant assigns this Lease to a Person that, immediately
following such assignment (including, without limitation, as contemplated by
Paragraphs 21(j) or 21(k) below) and after having given effect thereto, is a
Release Credit Entity, then the transferor Tenant shall be released from all
liabilities and obligations under this Lease with respect to matters that first
arose, occurred or accrued after the date of such assignment. No assignment or
sublease shall impose any additional obligations on Landlord under this Lease.
For purposes of this Paragraph 21(d), "Release Credit Entity" shall mean any
Person that immediately following such assignment (other than an assignment,
whether voluntary or involuntary, by operation of law, including, without
limitation, a consolidation or merger) and having given effect thereto shall
have a publicly traded unsecured senior debt rating of "Baal" or better from
Moody's or a rating of "BBB+" or better from S&P and is not on "Negative Credit
Watch" by S&P or Moody's (or, if such Person does not then have rated debt, a
determination that by either of such rating agencies its unsecured senior debt
would be so rated by such agency), and in the event both such rating agencies
cease to furnish such ratings, then a comparable rating by any rating agency
acceptable to Landlord and Lender.

                           (e)      Tenant shall, within ten (10) days after the
execution and delivery of any assignment or sublease, deliver a duplicate
original copy thereof to Landlord which, in the event of an assignment, shall be
in recordable form. With respect to any Preapproved Assignment or any
Preapproved Sublet, thirty (30) days prior to the effective date of such
assignment or sublease, Tenant shall provide to Landlord information reasonably
required by Landlord to establish that the Person involved in any such proposed
assignment or sublet satisfies the criteria set forth in this Lease for a
Preapproved Assignment or Preapproved Sublet.

                           (f)      As security for performance of its
obligations under this Lease, Tenant hereby grants, conveys and assigns to
Landlord all right, title and interest of Tenant in and to all subleases now in
existence or hereafter entered into for any or all of the Leased Premises, any
and all extensions, modifications and renewals thereof and all rents, issues and
profits therefrom. Landlord hereby grants to Tenant a license to collect and
enjoy all rents and other sums of money payable under any sublease of any of the
Leased Premises; provided, however, that Landlord shall have the absolute right
at any time and upon notice to Tenant and any subtenants to revoke said license
and to collect such rents and sums of money and to retain the same; provided,
further, however, that Landlord's right to revoke said license and to collect
such rents and sums of money and to retain the same shall only be applicable
with regard to any Preapproved Sublet pursuant to Paragraph 21(c)(ii) while
there's an uncured Event of Default. Any amounts collected shall be applied to
Rent

                                       32
<PAGE>

payments next due and owing. Tenant shall not accept any rents more than one (1)
month in advance of the accrual thereof nor do nor permit anything to be done,
the doing of which, nor omit or refrain from doing anything, the omission of
which, will or could be a breach of or default in the terms of any of the
subleases.

                           (g)      Tenant shall not have the power to mortgage,
pledge or otherwise encumber its interest under this Lease or any sublease of
the Leased Premises, and any such mortgage, pledge or encumbrance made in
violation of this Paragraph 21 shall be void and of no force and effect.

                           (h)      Intentionally Omitted.

                           (i)      Subject to the provisions of Paragraph 35
hereof (Tenant's right of first offer), Landlord may sell or transfer subject to
this Lease the Leased Premises at any time without Tenant's consent to any third
party (each a "Third Party Purchaser"). In the event of any such transfer,
Tenant shall attorn to any Third Party Purchaser as Landlord so long as such
Third Party Purchaser and Landlord notify Tenant in writing of such transfer. At
the request of Landlord, Tenant will execute such documents confirming the
agreement referred to above and such other agreements as Landlord may reasonably
request, provided that such agreements do not increase the liabilities and
obligations of Tenant hereunder.

                           (j)      Tenant shall not, in a single transaction or
series of related transactions (including any interim merger or consolidation),
sell or convey, transfer, abandon or lease all or substantially all of its
assets (an "Asset Transfer") to any Person, and any such Asset Transfer shall be
deemed an assignment in violation of this Lease; except that, Tenant shall have
the right to conduct an Asset Transfer to a Person without Landlord's consent if
the following conditions are met: (i) the Asset Transfer is to a Person that (A)
immediately following such transaction or transactions, taken in the aggregate,
is (or would be, on a pro forma basis) a Credit Entity, (B) is a wholly-owned
Subsidiary of Tenant (but only for so long as such Person shall remain a
wholly-owned Subsidiary of Tenant), or (C) is approved in writing by Landlord
under the Review Criteria as a Non-Preapproved Assignee in accordance with the
provisions of Paragraph 21(b) of this Lease; and (ii) this Lease is assigned to
such Person as a part of such Asset Transfer. In the event of an Asset Transfer
to a wholly-owned Subsidiary of Tenant, any subsequent sale of the assets of the
original Tenant named herein by such wholly-owned Subsidiary of Tenant shall be
governed by the requirements of this subparagraph (j) irrespective of whether or
not such sale would be considered a sale of all or substantially all of the
assets of the wholly-owned Subsidiary of Tenant.

                           (k)      At no time during the Term shall any Person
or "group" (within the meaning of Section 13(d) or Section 14(d) of the
Securities Exchange Act of 1934, as amended) pursuant to a single transaction or
series of related transactions (i) acquire, directly or indirectly, more than
50% of the voting stock, partnership interests, membership interests or other
equitable and/or beneficial interests of Tenant ("Control") or (ii) obtain,
directly or indirectly, the power (whether or not exercised) to elect a majority
of the directors of Tenant

                                       33
<PAGE>

or voting control of any partnership or limited liability company or other
entity acting as its general partner or managing member (including through a
merger or consolidation of Tenant with or into any other Person), unless the
purchaser of such Control or Person who acquires such voting power shall: (A)
after taking into account the transaction that resulted in the acquisition of
such Control or voting power, be a Credit Entity and such Person shall enter
into a guaranty satisfactory to Landlord pursuant to which it guarantees the
payment and performance of the obligations of Tenant under this Lease, or (B) be
approved in writing by Landlord under the Review Criteria as a Non-Preapproved
Assignee in accordance with the provisions of Paragraph 21(b) above. Except as
permitted in this Paragraph 21(k) above, any such change of Control or voting
power (by operation of law, merger, consolidation or otherwise) shall be deemed
as an assignment of this Lease to a Non-Preapproved Assignee (regardless of the
status of the proposed assignee) and the approval of Landlord and Lender shall
be required as set forth in Paragraph 21(b) above and any consummation of such
assignment absent such approval shall be in violation of this Lease; provided,
however, that a deemed assignment pursuant to the transfer of the outstanding
capital stock of Tenant shall not be deemed to include the sale of such stock by
persons or parties through the "over-the-counter market" or through any
recognized stock exchange, other than by those deemed to be a "control-person"
within the meaning of the Securities Exchange Act of 1934.

                  22.      Events of Default.

                           (a)      The occurrence of any one or more of the
following (after expiration of any applicable cure period as provided in
Paragraph 22(b)) shall, at the sole option of Landlord, constitute an "Event of
Default" under this Lease:

                                    (i)      a failure by Tenant to make any
payment of any Monetary Obligation on or prior to its due date, regardless of
the reason for such failure;

                                    (ii)     a failure by Tenant duly to perform
and observe, or a violation or breach of, any other provision hereof not
otherwise specifically mentioned in this Paragraph 22(a);

                                    (iii)    any representation or warranty made
by Tenant herein or in any certificate, demand or request made pursuant hereto
proves to be incorrect, now or hereafter, in any material respect;

                                    (iv)     a default beyond any applicable
cure period by Tenant in any payment of principal or interest on obligations for
borrowed money having a then-outstanding principal balance of $10,000,000 or
more, and either (x) such payment is a payment at maturity or a final payment
and the obligee with respect thereto shall have commenced exercising its
remedies in connection therewith, or (y) such obligation has been accelerated
prior to its stated maturity;

                                    (v)      Tenant shall (A) voluntarily be
adjudicated a bankrupt or insolvent, (B) seek or consent to the appointment of a
receiver or trustee for itself or for either of the Related Premises, (C) file a
petition seeking relief under the bankruptcy or other

                                       34
<PAGE>

similar laws of the United States, any state or any jurisdiction, (D) make a
general assignment for the benefit of creditors, or (E) be unable to pay its
debts as they mature;

                                    (vi)     a court shall enter an order,
judgment or decree appointing, without the consent of Tenant, a receiver or
trustee for it or for either of the Related Premises or approving a petition
filed against Tenant which seeks relief under the bankruptcy or other similar
laws of the United States, any state or any jurisdiction, and such order,
judgment or decree shall remain undischarged or unstayed sixty (60) days after
it is entered;

                                    (vii)    either of the Related Premises
shall have been (A) vacated in its entirety (i.e., neither Tenant nor any
sublessee or licensee shall be in possession of any portion thereof), provided
that Tenant shall have the right to vacate either one or both of the Related
Premises for up to six (6) months and, so long as Tenant has retained a third
party broker and during such initial six (6) month period Tenant has diligently
attempted to sublet such Related Premises, for an additional six (6) months, or
(B) abandoned;

                                    (viii)   Tenant shall be liquidated or
dissolved or shall begin proceedings towards its liquidation or dissolution;

                                    (ix)     the estate or interest of Tenant in
either of the Related Premises shall be levied upon or attached in any
proceeding and such estate or interest is about to be sold or transferred or
such process shall not be vacated or discharged within sixty (60) days after it
is made;

                                    (x)      a failure by Tenant to perform or
observe, or a violation or breach of, or a misrepresentation by Tenant under,
any provision of any Assignment or any other document between Tenant and Lender
or from Tenant to Lender, if such failure, violation, breach or
misrepresentation gives rise to a default beyond any applicable cure period with
respect to any Loan;

                                    (xi)     Tenant shall in a single
transaction or series of related transactions sell, convey, transfer or lease
all or substantially all of its assets unless concurrently with such sale the
interest of Tenant in this Lease is assigned to the purchaser, lessee or
transferee of such assets who complies with the requirements of Paragraph 21 of
this Lease and who shall assume in writing all of the obligations of Tenant
hereunder; or

                                    (xii)    a Non-Preapproved Assignment shall
occur and Tenant shall have failed to comply with the provisions of Paragraph
21(b), if applicable;

                                    (xiii)   Tenant shall fail to deliver the
estoppel described in Paragraph 25 within the time period specified therein; or

                                    (xiv)    Tenant shall fail to renew or
replenish, if necessary, the Prepaid Rent in accordance with the requirements of
Paragraph 34.

                                       35
<PAGE>

                                    (xv)     There shall occur a breach or
default by Tenant under the Condominium Declaration beyond any applicable notice
and cure period.

                           (b)      No notice or cure period shall be required
in any one or more of the following events: the occurrence of an Event of
Default under clause (i) (except as otherwise set forth below), (iv), (v), (vi),
(vii), (viii), (ix), (x), (xi), (xii), (xiii), (xiv) or (xv) of Paragraph 22(a).
If the default consists of the failure to comply with any insurance required by
Paragraph 16, then the applicable cure period shall be three (3) days from the
date on which notice is given, but Landlord shall not be obligated to give
notice of, or allow any cure period for, any such default more than one (1) time
within any Lease Year. If the default consists of the failure to pay Basic Rent,
then applicable cure period shall be five (5) days from the date on which notice
is given, but Landlord shall not be obligated to give notice of, or allow any
cure period for, any such default more than one (1) time within any Lease Year.
If the default consists of the failure to pay any Monetary Obligation except
Basic Rent, then the applicable cure period shall be ten (10) days from the date
on which notice is given but Landlord shall not be obligated to give notice of,
or allow any cure period for, the same default more than one (1) time in any
Lease Year. If the default consists of a default under clauses (ii) or (iii)
(but with respect to (iii), if and only if same is reasonably susceptible of
being cured) of Paragraph 22(a), other than the events specified in clause (B)
of the first sentence of this Paragraph 22(b), the applicable cure period shall
be thirty (30) days from the date on which notice is given or, if the default
cannot be cured within such thirty (30) day period and delay in the exercise of
a remedy would not (in Landlord's reasonable judgment) cause any material
adverse harm to Landlord or any of the Leased Premises, the cure period shall be
extended for the period required to cure the default (but such cure period,
including any extension, shall not in the aggregate exceed ninety (90) days),
provided that Tenant shall commence to cure the default within the said
thirty-day period and shall actively, diligently and in good faith proceed with
and continue the curing of the default until it shall be fully cured.

                  23.      Remedies and Damages Upon Default.

                           (a)      If an Event of Default shall have occurred
and is continuing, Landlord shall have the right, at its sole option, then or at
any time thereafter upon not less than three (3) days prior written notice to
Tenant, to exercise its remedies and to collect damages from Tenant in
accordance with this Paragraph 23, subject in all events to applicable Law,
without demand upon or notice to Tenant except as otherwise provided in
Paragraph 22(b) and this Paragraph 23.

                                    (i)      Landlord may give Tenant notice of
Landlord's intention to terminate this Lease on a date specified in such notice.
Upon such date, this Lease, the estate hereby granted and all rights of Tenant
hereunder shall expire and terminate. Upon such termination, Tenant shall
immediately surrender and deliver possession of the Leased Premises to Landlord
in accordance with Paragraph 26. If Tenant does not so surrender and deliver
possession of all of the Leased Premises, Landlord may re-enter and repossess
any of the Leased Premises not surrendered, by any available legal process. Upon
or at any time

                                       36
<PAGE>

after taking possession of any of the Leased Premises, Landlord may, by legal
process, remove any Persons or property therefrom. Landlord shall be under no
liability for or by reason of any such entry, repossession or removal.
Notwithstanding such entry or repossession, Landlord may collect the damages set
forth in Paragraph 23(b)(i) or 23(b)(ii).

                                    (ii)     Landlord may terminate Tenant's
right of possession (but not this Lease) and may repossess the Leased Premises
by any available legal process without thereby releasing Tenant from any
liability hereunder and without demand or notice of any kind to Tenant and
without terminating this Lease. After repossession of any of the Leased Premises
pursuant to clause (i) above or any termination pursuant to this clause (ii),
Landlord shall have the right to relet any of the Leased Premises to such tenant
or tenants, for such term or terms, for such rent, on such conditions and for
such uses as Landlord in its sole discretion may determine, and collect and
receive any rents payable by reason of such reletting. Landlord may make such
Alterations in connection with such reletting as it may deem advisable in its
sole discretion. Notwithstanding any such termination of Tenant's right of
possession of the Leased Premises, Landlord may at any time thereafter elect to
terminate this Lease and in such event Landlord shall have the right and
remedies specified in the last sentence of Paragraph 23(a)(i).

                           (b)      The following constitute damages to which
Landlord shall be entitled if Landlord exercises its remedies under Paragraph
23(a)(i) or 23(a)(ii):

                                    (i)      If Landlord exercises its remedy
under Paragraph 23(a)(i) but not its remedy under Paragraph 23(a)(ii) (or
attempts to exercise such remedy and is unsuccessful in reletting the Leased
Premises) then, upon written demand from Landlord, Tenant shall pay to Landlord,
as liquidated and agreed final damages for Tenant's default and in lieu of all
current damages beyond the date of such demand (it being agreed that it would be
impracticable or extremely difficult to fix the actual damages), an amount equal
to the Present Value of the excess, if any, of (A) all Basic Rent from the date
of such demand to the date on which the Term is scheduled to expire hereunder in
the absence of any earlier termination, re-entry or repossession over (B) the
then fair market rental value of the Leased Premises for the same period. Tenant
shall also pay to Landlord all accrued Rent then due and unpaid, all other
Monetary Obligations which are then due and unpaid, all Monetary Obligations
which arise or become due by reason of such Event of Default, including any
Costs of Landlord in connection with the repossession of the Leased Premises and
any attempted reletting thereof, including all brokerage commissions, legal
expenses, reasonable attorneys' fees, employees' expenses, costs of Alterations
and expenses and preparation for reletting.

                                    (ii)     If Landlord exercises its remedy
under Paragraph 23(a)(i) or its remedies under Paragraph 23(a)(i) and 23(a)(ii),
then Tenant shall, until the end of what would have been the Term in the absence
of the termination of the Lease, and whether or not any of the Leased Premises
shall have been relet, be liable to Landlord for, and shall pay to Landlord, as
liquidated and agreed current damages all Monetary Obligations which would be
payable under this Lease by Tenant in the absence of such

                                       37
<PAGE>

termination less the net proceeds, if any, of any reletting pursuant to
Paragraph 23(a)(ii), after deducting from such proceeds all accrued Rent then
due and unpaid, all other Monetary Obligations which are then due and unpaid,
all Monetary Obligations which arise or become due by reason of such Event of
Default, including any Costs of Landlord incurred in connection with such
repossessing and reletting, including all brokerage commissions, legal expenses,
reasonable attorneys' fees, employees' expenses, costs of Alterations and
expenses and preparation for reletting; provided, that if Landlord has not relet
the Leased Premises, such Costs of Landlord shall be considered to be Monetary
Obligations payable by Tenant.

                                    (iii)    Tenant shall be and remain liable
for all sums aforesaid, and Landlord may recover such damages from Tenant and
institute and maintain successive actions or legal proceedings against Tenant
for the recovery of such damages. Nothing herein contained shall be deemed to
require Landlord to wait to begin such action or other legal proceedings until
the date when the Term would have expired by its own terms had there been no
such Event of Default.

                           (c)      Notwithstanding anything to the contrary
herein contained, in lieu of or in addition to any of the foregoing remedies and
damages, Landlord may exercise any remedies and collect any damages available to
it at law or in equity. If Landlord is unable to obtain full satisfaction
pursuant to the exercise of any remedy, it may pursue any other remedy which it
has hereunder or at law or in equity.

                           (d)      Notwithstanding anything to the contrary
contained herein, Landlord shall use reasonable efforts to mitigate any damages
hereunder following any termination of this Lease or any termination of Tenant's
possession of the Premises and Landlord shall be deemed to have acted reasonably
if Landlord has, within a reasonable time after such termination, retained a
third party broker to relet the Leased Premises on such terms as shall be
recommended by such third party broker. If any Law shall validly limit the
amount of any damages provided for herein to an amount which is less than the
amount agreed to herein, Landlord shall be entitled to the maximum amount
available under such Law.

                           (e)      No termination of this Lease, repossession
or reletting of any of the Leased Premises, exercise of any remedy or collection
of any damages pursuant to this Paragraph 23 shall relieve Tenant of any
Surviving Obligations.

                           (f)      WITH RESPECT TO ANY REMEDY OR PROCEEDING OF
LANDLORD OR TENANT HEREUNDER, TENANT HEREBY WAIVES ANY RIGHT TO A TRIAL BY JURY.

                           (g)      Upon the occurrence of any Event of Default,
Landlord shall have the right (but no obligation) to perform any act required of
Tenant hereunder and, if performance of such act requires that Landlord enter
the Leased Premises, Landlord may enter the Leased Premises for such purpose

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<PAGE>

                           (h)      No failure of Landlord (i) to insist at any
time upon the strict performance of any provision of this Lease or (ii) to
exercise any option, right, power or remedy contained in this Lease shall be
construed as a waiver, modification or relinquishment thereof. A receipt by
Landlord of any sum in satisfaction of any Monetary Obligation with knowledge of
the breach of any provision hereof shall not be deemed a waiver of such breach,
and no waiver by Landlord of any provision hereof shall be deemed to have been
made unless expressed in a writing signed by Landlord.

                           (i)      Tenant hereby waives and surrenders, for
itself and all those claiming under it, including creditors of all kinds, any
right and privilege which it or any of them may have under any present or future
Law to redeem any of the Leased Premises or to have a continuance of this Lease
after termination of this Lease or of Tenant's right of occupancy or possession
pursuant to any court order or any provision hereof.

                           (j)      Except as otherwise provided herein, all
remedies are cumulative and concurrent and no remedy is exclusive of any other
remedy. Each remedy may be exercised at any time an Event of Default has
occurred and is continuing and may be exercised from time to time. No remedy
shall be exhausted by any exercise thereof.

                  24.      Notices. All notices, demands, requests, consents,
approvals, offers, statements and other instruments or communications required
or permitted to be given pursuant to the provisions of this Lease shall be in
writing and shall be deemed to have been given and received for all purposes
when delivered in person or by Federal Express or other reliable overnight
delivery service or five (5) business days after being deposited in the United
States mail, by registered or certified mail, return receipt requested, postage
prepaid, addressed to the other party at its address stated on page one of this
Lease or when delivery by any such method is refused. Notices sent to Landlord
shall be to the attention of Director, Asset Management, and notices sent to
Tenant shall be to the attention of Tenant's General Counsel. A copy of any
notice given by Tenant to Landlord shall be addressed to the attention of
Director, Asset Management and shall simultaneously be given by Tenant to Reed
Smith LLP, One Liberty Place, Philadelphia, PA 19103, Attention: Chairman, Real
Estate Department. For the purposes of this Paragraph, any party may substitute
another address stated above (or substituted by a previous notice) for its
address by giving fifteen (15) days' notice of the new address to the other
party, in the manner provided above.

                  25.      Estoppel Certificate. At any time upon not less than
ten (10) days' prior written request by either Landlord or Tenant (the
"Requesting Party") to the other party (the "Responding Party"), the Responding
Party shall deliver to the Requesting Party a statement in writing, executed by
an authorized officer of the Responding Party, certifying (a) that, except as
otherwise specified, this Lease is unmodified and in full force and effect, (b)
the dates to which Basic Rent, Additional Rent and all other Monetary
Obligations have been paid, (c) that, to the knowledge of the signer of such
certificate and except as otherwise specified, no default by either Landlord or
Tenant exists hereunder, (d) such other matters as the Requesting Party may
reasonably request, and (e) if Tenant is the Responding Party that, except as
otherwise specified, there are no proceedings pending or, to the knowledge of
the

                                       39
<PAGE>

signer, threatened, against Tenant before or by a court or administrative agency
which, if adversely decided, would materially and adversely affect the financial
condition and operations of Tenant. Any such statements by the Responding Party
may be relied upon by the Requesting Party, any Person whom the Requesting Party
notifies the Responding Party in its request for the Certificate is an intended
recipient or beneficiary of the Certificate, any Lender or their assignees and
by any prospective purchaser or mortgagee of any of the Leased Premises. Any
certificate required under this Paragraph 25 and delivered by Tenant shall state
that, in the opinion of each person signing the same, he has made such
examination or investigation as is necessary to enable him to express an
informed opinion as to the subject matter of such certificate, and shall briefly
state the nature of such examination or investigation. In no event shall any
person signing a Certificate be personally liable thereunder.

                  26.      Surrender. Upon the expiration or earlier termination
of this Lease, Tenant shall peaceably leave and surrender the Leased Premises or
Affected Premises, as is applicable, to Landlord in the same condition in which
the Leased Premises or Affected Premises, if applicable, was at the commencement
of this Lease, except as repaired, rebuilt, restored, altered, replaced or added
to as permitted or required by any provision of this Lease, ordinary wear and
tear and damage from any Casualty or Condemnation excepted; provided, however,
that with respect to any Casualty Tenant has paid to Landlord the deductible
under Paragraph 16(a)(i) or, if applicable, Landlord has received the
Termination Amount. Upon such surrender, Tenant shall (a) remove from the Leased
Premises or Affected Premises, if applicable, all Tenant's Property and
Alterations required to be removed pursuant to Paragraph 13 hereof, and (b)
repair any damage caused by such removal. Property not so removed shall become
the property of Landlord, and Landlord may thereafter cause such property to be
removed from the Leased Premises or Affected Premises, if applicable. The cost
of removing and disposing of such property and repairing any damage to any of
the Leased Premises or Affected Premises, if applicable, caused by such removal
shall be paid by Tenant to Landlord upon demand. Landlord shall not in any
manner or to any extent be obligated to reimburse Tenant for any such property
which becomes the property of Landlord pursuant to this Paragraph 26.
Notwithstanding anything to the contrary in this Lease, Tenant shall be under no
obligation to patch, repair or replace finish work, such as wallcoverings, paint
and carpeting, or to patch, repair or cover holes in the walls or floor left by
the removal of any Alteration or Tenant's property to the extent such removal
was performed in a reasonable or normal manner.

                  27.      No Merger of Title. There shall be no merger of the
leasehold estate created by this Lease with the fee estate in any of the Leased
Premises by reason of the fact that the same Person may acquire or hold or own,
directly or indirectly, (a) the leasehold estate created hereby or any part
thereof or interest therein and (b) the fee estate in any of the Leased Premises
or any part thereof or interest therein, unless and until all Persons having any
interest in the interests described in (a) and (b) above which are sought to be
merged shall join in a written instrument effecting such merger and shall duly
record the same.

                  28.      Books and Records.

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<PAGE>

                           (a)      Tenant shall keep adequate records and books
of account with respect to the finances and business of Tenant generally and
with respect to the Leased Premises, in accordance with generally accepted
accounting principles ("GAAP") consistently applied, and shall permit Landlord
and Lender by their respective agents, accountants and attorneys to visit and
inspect the Leased Premises and examine (and make copies of) at Tenant's main
offices the records and books of account and to discuss the finances and
business with the officers of Tenant, at such reasonable times as may be
requested by Landlord, upon not less than ten (10) days' prior notice to Tenant.
Upon the request of Lender or Landlord (either telephonically or in writing),
Tenant shall provide within ten (10) days' the requesting party with copies of
any information to which such party would be entitled in the course of a
personal visit.

                           (b)      Tenant shall deliver to Landlord and to
Lender within one hundred twenty (120) days of the close of each fiscal year,
annual audited financial statements of Tenant prepared by nationally recognized
independent certified public accountants. Tenant shall also furnish to Landlord
within forty-five (45) days after the end of each of the three remaining
quarters unaudited financial statements and all other quarterly reports of
Tenant, certified by Tenant's chief financial officer, and all filings, if any,
of Form 10-K, Form 10-Q and other required filings with the Securities and
Exchange Commission pursuant to the provisions of the Securities Exchange Act of
1934, as amended, or any other similar Law. All financial statements of Tenant
shall be prepared in accordance with GAAP consistently applied. All annual
financial statements shall be accompanied (i) by an opinion of said accounting
firm stating that (A) there are no qualifications as to the scope of the audit
and (B) the audit was performed in accordance with GAAP and (ii) by the
affidavit of the president or a vice president of Tenant, dated within five (5)
days of the delivery of such statement, stating that (C) the affront knows of no
Event of Default, or event which, upon notice or the passage of time or both,
would become an Event of Default which has occurred and is continuing hereunder
or, if any such event has occurred and is continuing, specifying the nature and
period of existence thereof and what action Tenant has taken or proposes to take
with respect thereto and (D) except as otherwise specified in such affidavit,
that Tenant has fulfilled all of its obligations under this Lease which are
required to be fulfilled on or prior to the date of such affidavit; provided
that no such affidavit shall be a personal obligation or, or create any
liability to, the affiant.

                  29.      Tenant's Property.

                           (a)      The following property (collectively,
"Tenant's Property"), whether or not located in or on the Leased Premises, does
not constitute a portion of the Leased Premises and shall at all times during
and after the Term be the property of Tenant:

                                    (i)      All items of personal property,
equipment and trade fixtures (so long as same are not necessary for the
operation of the Property as opposed to the business from time to time conducted
at the Property) about the Leased Premises, and whether or however attached to
the Improvements, at any time that are necessary or incidental to the business
from time to time conducted at the Leased Premises, including,

                                       41
<PAGE>

without limitation, exercise equipment, kitchen equipment and furnishings, work
stations, portable or movable partitions, receptionist desks, millwork,
credenzas, computer installations (including computers, computer hardware,
raised flooring, freestanding supplemental air conditioning or cooling systems
therefor), communications systems and equipment, financial services equipment
(such as ATM's), safes, safe doors, bulletin boards, book shelves and file
cabinets, but excluding central HVAC and other building systems (other than
telecommunications equipment, which shall be deemed the personal property of
Tenant), walls (other than demountable walls or partitions), doors, trim, floor
and wall coverings, ceiling lights and tile, window shades and the like;

                                    (ii)     All furniture, inventory, machinery
(so long as same is not necessary for the operation of the Leased Premises as
opposed to the business from time to time conducted at the Property), racking,
shelving, and other personal property;

                                    (iii)    Any personal property, equipment or
trade fixtures (so long as same are not necessary for the operation of the
Property as opposed to the business from time to time conducted at the Property)
which is either not owned by Landlord or Tenant or is on consignment to Tenant,
including any personal property owned by Tenant's, subtenant's, employees or
invitees;

                                    (iv)     All signs and other forms of
business identification; and

                                    (v)      Any other items of personal
property whatsoever.

                           (b)      Tenant shall have the right in its sole and
absolute discretion from time to time to install, alter, remove and/or replace
such Tenant's Property as it shall deem to be useful or desirable in connection
with its business in the Leased Premises. Tenant further shall have the right to
enter into such agreements and assignments with respect to the Tenant's Property
as Tenant in its sole discretion shall deem advisable, including financing and
similar arrangements.

                           (c)      Landlord agrees that, upon the request of
any Person that shall be Tenant's senior secured lender or an equipment lender
or equipment lessor of Tenant, Landlord shall negotiate in good faith for the
purpose of executing and delivering a commercially reasonable waiver of
Landlord's statutory lien rights, if any, and a consent and agreement with
respect to the respective rights of Landlord and such Person regarding the
security interests in, and the timing and removal of, any inventory, equipment
or other collateral in which such Person has a secured interest (the
"Collateral"), in form and substance reasonably acceptable to Landlord and such
Person, so long as such waiver and agreement (i) provides for the
indemnification of Landlord against any claims by Tenant or any Person claiming
through Tenant, and against any physical damage caused to the Leased Premises,
in connection with the removal of any of the Collateral by such Person, (ii)
expressly excludes any claim by such Person to any right, title or interest in
or to any of the Equipment as defined in this Lease, (iii) provides for a
reasonable, but in no event more than sixty (60) days, time frame for the
removal of such Collateral by such Person after the expiration of which same
shall be deemed abandoned, and (iv) provides for the per diem

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<PAGE>

payment of Basic Rent due hereunder by such Person for each day following the
date of the expiration or termination of this Lease that Landlord permits such
Person's Collateral to remain in the Leased Premises.

                  30.      Non-Recourse as to Landlord. ANYTHING CONTAINED
HEREIN TO THE CONTRARY NOTWITHSTANDING, ANY CLAIM BASED ON OR IN RESPECT OF ANY
LIABILITY OF LANDLORD UNDER THIS LEASE SHALL BE LIMITED TO ACTUAL DAMAGES AND
SHALL BE ENFORCED ONLY AGAINST THE LEASED PREMISES AND NOT AGAINST ANY OTHER
ASSETS, PROPERTIES OR FUNDS OF (a) LANDLORD, (b) ANY DIRECTOR, MEMBER, OFFICER,
GENERAL PARTNER, LIMITED PARTNER, EMPLOYEE OR AGENT OF LANDLORD, OR ANY GENERAL
PARTNERS OR SHAREHOLDERS OF LANDLORD (OR ANY LEGAL REPRESENTATIVE, HEIR, ESTATE,
SUCCESSOR OR ASSIGN OF ANY THEREOF), (c) ANY SUCCESSOR LANDLORD OF LANDLORD'S
GENERAL PARTNERS, EITHER DIRECTLY OR THROUGH LANDLORD OR ITS GENERAL PARTNERS OR
ANY PREDECESSOR OR SUCCESSOR PARTNERSHIP OR CORPORATION OR THEIR SHAREHOLDERS,
OFFICERS, DIRECTORS, EMPLOYEES OR AGENTS (OR OTHER ENTITY), OR (d) CAREY
PROPERTY ADVISORS, CAREY FIDUCIARY ADVISORS, INC., W. P. CAREY & CO., LLC, CAREY
MANAGEMENT LLC, AND ANY PERSON AFFILIATED WITH ANY OF THE FOREGOING, OR ANY
DIRECTOR, OFFICER, EMPLOYEE OR AGENT OF ANY THEREOF.

                  31.      Financing.

                           (a)      Tenant agrees to pay all costs and expenses
incurred by Landlord in connection with the negotiation of this Lease and the
purchase and initial Loan including, without limitation, the cost of appraisals,
environmental reports, structural reports, title insurance, transfer and
recording fees and taxes, surveys, Lender's legal fees, mortgage points (up to
0.5% of the Loan), and Landlord's legal fees and expenses (up to $100,000).

                           (b)      If Landlord desires to obtain or refinance
any Loan, Tenant agrees, upon request of Landlord, to supply any such Lender
with such notices and information as Tenant is required to give to Landlord
hereunder and to extend the rights of Landlord hereunder to any such Lender and
to consent to such financing if such consent is requested by such Lender. Tenant
shall provide any other consent or statement and shall execute any and all other
documents that such Lender reasonably requires in connection with such
financing, including any subordination, non-disturbance and attornment agreement
which complies with Paragraph 32, so long as the same do not materially
adversely affect any right, benefit or privilege of Tenant under this Lease or
materially increase Tenant's obligations under this Lease. Such subordination,
nondisturbance and attornment agreement may require Tenant to confirm that (i)
Lender and its assigns will not be liable for any misrepresentation, act or
omission of Landlord and (ii) Lender and its assigns will not be subject to any
counterclaim, demand or offsets which Tenant may have against Landlord.

                           (c)      Within five (5) days after Tenant's request
from time to time, Landlord shall provide Tenant with copies of the relevant
documentation necessary for Tenant to determine any Prepayment Premium, any late
payment fees, charges or additional interest with respect to the Loan then in
effect.

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<PAGE>

                  32.      Subordination, Non-Disturbance and Attornment. This
Lease and Tenant's interest hereunder shall be subordinate to any Mortgage or
other security instrument hereafter placed upon the Leased Premises by Landlord,
and to any and all advances made or to be made thereunder, to the interest
thereon, and all renewals, replacements and extensions thereof, provided that
any such Mortgage or other security instrument (or a separate instrument in
recordable form duly executed by the holder of any such Mortgage or other
security instrument and delivered to Tenant) shall provide for the recognition
and non-disturbance of this Lease and all Tenant's rights hereunder unless and
until an Event of Default exists and Landlord shall have terminated this Lease
pursuant to any applicable provision hereof.

                  33.      Tax Treatment; Reporting. Landlord and Tenant each
acknowledge that each shall treat this transaction as a true lease for state law
purposes and shall report this transaction as a Lease for Federal income tax
purposes. For Federal income tax purposes each shall report this Lease as a true
lease with Landlord as the owner of the Leased Premises and Equipment and Tenant
as the lessee of such Leased Premises and Equipment including: (i) treating
Landlord as the owner of the property eligible to claim depreciation deductions
under Section 167 or 168 of the Internal Revenue Code of 1986 (the "Code") with
respect to the Leased Premises and Equipment, (ii) Tenant reporting its Rent
payments as rent expense under Section 162 of the Code, and (iii) Landlord
reporting the Rent payments as rental income. For the avoidance of doubt,
nothing in this Lease shall be deemed to constitute a guaranty, warranty or
representation by either Landlord or Tenant as to the actual treatment of this
transaction for state law purposes and for federal law purposes.

                  34.      Prepaid Rent.

                           (a)      Concurrently with the execution of this
Lease, Tenant has delivered to Landlord cash in the amount of Two Million One
Hundred Twenty-Three Thousand Five Hundred Fifty and 00/100 Dollars
($2,123,550). Such amount shall be increased to the amounts set forth on Exhibit
"D" attached hereto (the amount of such prepaid rent required at any time
pursuant to this Paragraph 34, the "PREPAID RENT"), such increase to be paid no
later than fifteen (15) days following the applicable increase in Basic Rent.
The Prepaid Rent shall be held in an interest bearing account and shall not be
commingled with other funds of Landlord or other Persons. So long as no Event of
Default exists, interest accrued on the Prepaid Rent less an administration fee
of 50 basis points, which shall be retained by Landlord, shall be released to
Tenant within ninety (90) days after the end of each Lease Year. No amount of
the Prepaid Rent shall be refundable to Tenant in the event that this Lease is
terminated prior to the expiration of the Term by reason of an Event of Default.
If the Leased Premises are purchased by Tenant pursuant to Paragraph 18 or 35
hereof, the Prepaid Rent and all accrued interest (less the applicable
administration fee) shall be refunded to Tenant. The Prepaid Rent shall be
applied to Tenant's Basic Rent obligations at such time (and only at such time)
as is specified herein and thereupon the Prepaid Rent shall, pursuant to the
terms hereof, be applied in full toward Tenant's Basic Rent obligations in
accordance with this Article 34.

                                       44
<PAGE>

                           (b)      Tenant shall have the right at any time and
from time to time during the Term to provide the Prepaid Rent in cash or by
delivering a letter of credit (the "LETTER OF CREDIT") for the amount of the
Prepaid Rent required hereunder, such Letter of Credit to be an irrevocable
letter of credit issued by a bank reasonably acceptable to Landlord and having a
long-term debt rating of not less than "A" from S&P and in the form and
substance reasonably satisfactory to Landlord. If Tenant fails to renew the
Letter of Credit at least thirty (30) days prior to its expiration, time being
of the essence, Landlord shall have the right at any time after the thirtieth
(30th) day before such expiration date, to draw on the Letter of Credit and to
use the proceeds of the Letter of Credit as Prepaid Rent.

                                    At such time as Prepaid Rent is to be
applied toward Tenant's Basic Rent obligations under Paragraph 34(c) below and
so long as no Event of Default has occurred and is then continuing, Landlord
shall draw on the Letter of Credit and apply the proceeds toward such Basic Rent
obligations.

                           (c)      So long as no Event of Default has occurred
and is then continuing, Landlord shall apply the Prepaid Rent toward Tenant's
Basic Rent obligations during the last two Basic Rent Payment Dates of the last
year of the initial Term that would allow the Prepaid Rent to be fully expended
before the expiration of the initial Term. In the event that the Prepaid Rent is
insufficient to pay the full amount of the then applicable Basic Rent due and
owing under this Lease on the last two Basic Rent Payment Dates, Tenant shall,
on each of such last two Basic Rent Payment Dates, pay to Landlord such
deficiency.

                           (d)      If at any time an Event of Default shall
have occurred and be continuing, Landlord shall be entitled, at its sole
discretion, to apply the Prepaid Rent in payment of (i) any Rent or other
charges for the payment of which Tenant shall be in default, (ii) prepaid Basic
Rent; (iii) any expense incurred by Landlord in curing any default of Tenant,
and/or (iv) any other sums due to Landlord in connection with any default or the
curing thereof, including, without limitation, any damages incurred by Landlord
by reason of such default, including any rights of Landlord under Paragraph 23
or to do any combination of the foregoing, all in such order or priority as
Landlord shall so determine in its sole discretion and Tenant acknowledges and
agrees that such proceeds shall not constitute assets or funds of Tenant or its
estate, or be deemed to be held in trust for Tenant, but shall be, for all
purposes, the property of Landlord (or Lender, to the extent assigned). Tenant
further acknowledges and agrees that (1) Landlord's application of the Prepaid
Rent towards the payment of Basic Rent, Additional Rent or the reduction of any
damages due Landlord in accordance with Paragraph 23 of this Lease, constitutes
a fair and reasonable use of such proceeds, and (2) the application of such
proceeds by Landlord towards the payment of Basic Rent, Additional Rent or any
other sums due under this Lease shall not constitute a cure by Tenant of the
applicable default provided that an Event of Default shall not exist if Tenant
restores the Prepaid Rent to its full original amount within five (5) days after
receipt of notice thereof by Landlord to Tenant so that the original amount of
the Prepaid Rent shall be again on deposit with Landlord.

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<PAGE>

                                    Tenant hereby confirms that if and to the
extent there may be any dispute between Landlord and Tenant as to whether an
Event of Default (upon a draw of the Prepaid Rent may be predicated) exists,
Tenant hereby elects (i) that it will no seek to enjoin such draw or bring other
legal action to prohibit such draw (and Tenant hereby waives the right to pursue
the same as part of its remedies hereunder or at law or in equity) and (ii) that
it will make any such challenge, claim or proceeding under and pursuant to this
Lease.

                           (e)      Landlord shall have the right to designate
Lender or any other holder of a Mortgage as the beneficiary of the Prepaid Rent
during the term of the applicable Loan, and such Lender or other holder of a
Mortgage shall have all of the rights of Landlord under this Paragraph 34.
Tenant covenants and agrees, at Tenant's sole cost and expense, to execute such
agreements, consents and acknowledgments as may be reasonably requested by
Landlord from time to time to change the holder of the Prepaid Rent as
hereinabove provided.

                  35.      Right of First Offer.

                           (a)      If Landlord decides to offer the Leased
Premises for sale to any third party, Landlord shall first offer by written
notice (the "Offer") to sell the Leased Premises to Tenant for a specific
purchase price (the "ROFO Purchase Price") and, upon such terms and conditions
as Landlord, in Landlord's sole discretion, would otherwise intend to offer to
sell the Leased Premises, prior to Landlord's offering to sell the Leased
Premises to any such third party except that the terms and conditions of any
such sale to Tenant shall be (i) consistent with the terms and provisions of
this Paragraph 35 and (ii) the sale to Tenant shall be "AS IS", "WHERE IS",
without representation or warranty by Landlord. If Landlord shall make the
Offer, then, whether or not Tenant has accepted the Offer, Landlord shall have
the unilateral right, in Landlord's sole discretion, to revoke the Offer if an
Event of Default exists under this Lease on the date on which Landlord shall
give, or would otherwise be required to give, Tenant the Offer.

                           (b)      Tenant shall have the right to accept the
Offer only by giving Landlord written notice of such acceptance (the "ROFO
Notice") within thirty (30) days after delivery by Landlord to Tenant of the
Offer. Time shall be of the essence with respect to said thirty (30) day period
and delivery of the ROFO Notice by Tenant. If Tenant shall accept the Offer,
Tenant shall execute any documentation reasonably required by Landlord to
reflect Tenant's acceptance of the Offer. Notwithstanding anything to the
contrary contained in this Lease, upon the delivery of the ROFO Notice by
Tenant, no event or circumstances affecting the Leased Premises including, but
not limited to, a Condemnation or Casualty, shall give Tenant any right or
option of Tenant to cancel, surrender or otherwise terminate this Lease, and any
other right or option of Tenant under the Lease to acquire the Leased Premises,
shall automatically be deemed to have been waived by Tenant for all purposes
under this Lease.

                           (c)      If Tenant does not accept, or fails to
accept, the Offer in accordance with the provisions herein, then, except as
provided below, Landlord shall be under no further obligation with respect to
such Offer pursuant to the terms contained herein,

                                       46
<PAGE>

and Tenant shall have forever waived and relinquished its right to such Offer,
and Landlord shall for a period of one (1) year after Tenant's rejection of the
Offer or the expiration of the thirty (30) day period specified in Paragraph
35(b) above be entitled to market the Leased Premises to others upon such terms
and conditions as Landlord in its sole discretion may determine, except that if
the price ("Third Party Price") for which Landlord enters into a letter of
intent or a binding contract ("Third Party Contract") to sell the Leased
Premises is less than ninety percent (90%) of the ROFO Purchase Price, Tenant
shall have fifteen (15) days in which to accept the Third Party Price and if it
is between ninety percent (90%) and ninety-five percent (95%), Tenant shall have
three (3) days in which to accept the Third Party Price. Tenant shall, within
five (5) days after Landlord's request therefor, deliver an instrument in form
reasonably satisfactory to Landlord confirming the aforesaid waiver, but no such
instrument shall be necessary to make the provisions hereof effective. If at the
expiration of such one (1) year period Landlord shall not have sold the Leased
Premises, Tenant shall again have the rights under this Paragraph 35.

                           (d)      If Tenant does not timely deliver the ROFO
Notice and the Leased Premises are transferred to a third party, Tenant will
attorn to such third party as Landlord so long as such third party and Landlord
notify Tenant in writing of such transfer. At the request of Landlord, Tenant
will execute such documents confirming the agreement referred to above and such
other agreements as Landlord may reasonably request, provided that such
agreements do not increase the liabilities and obligations of Tenant hereunder.

                           (e)      Notwithstanding anything to the contrary
contained herein, the provisions of this Paragraph 35 shall not apply to or
prohibit (i) any mortgaging, subjection to deed of trust or other hypothecation
of Landlord's interest in the Leased Premises, (ii) any sale of the Leased
Premises pursuant to a private power of sale under or judicial foreclosure of
any Mortgage or other security instrument or device to which Landlord's interest
in the Leased Premises is now or hereafter subject, (iii) any transfer of
Landlord's interest in the Leased Premises to a Lender, beneficiary under deed
of trust or other hold of a security interest therein or their designees by deed
in lieu of foreclosure, (iv) any transfer of the Leased Premises to any
governmental or quasi-governmental agency with power of condemnation, (v) any
transfer of the Leased Premises or any interest therein or in Landlord to any
affiliate of Corporate Property Associates 15 Incorporated ("CPA: 15") or to any
entity for whom W.P. Carey & Co. LLC or any of its Affiliates provides
management or advisory services or investment advice, (vi) a transfer to any
Person or entity to whom CPA: 15 sells all or substantially all of its assets,
(vii) any transfer of the interest of CPA: 15 in Landlord to any Affiliate of
CPA: 15, or (viii) any transfer of the Leased Premises to any of the successors
or assigns of any of the persons or entities referred to in the foregoing
clauses (i) through (iv).

                           (f)      If the Leased Premises is purchased by
Tenant pursuant to this Paragraph 35, Landlord need not convey any better title
thereto than that which was conveyed to Landlord, and Tenant shall accept such
title, subject, however, to the Permitted Encumbrances and to all other
exceptions and restrictions on, against or relating to any of the Leased
Premises and to all applicable Laws, but free of the lien of and security
interest

                                       47
<PAGE>

created by any mortgage or assignment of leases and rents and any other liens,
exceptions and restrictions on, against or relating to the Leased Premises which
have been created by or resulted solely from acts of Landlord after the date of
this Lease, unless the same are Permitted Encumbrances or customary utility
easements benefiting the Leased Premises or were created with the concurrence of
Tenant or as a result of a default by Tenant under this Lease.

                           (g)      Upon the date fixed for a purchase of the
Leased Premises pursuant to this Paragraph 35 which shall be a date mutually
acceptable to Landlord and Tenant which shall be no later than either sixty (60)
days following acceptance of the Offer or the date specified in the Third Party
Contract, if applicable, (the "Purchase Date"), Tenant shall pay to Landlord, or
to any Person or entity to whom Landlord directs payment, the ROFO Purchase
Price and all other sums payable by Tenant under the Offer, in Federal Funds,
and Landlord shall deliver to Tenant or its designee (i) special warranty deeds
or their equivalent which describe the Leased Premises being conveyed and
conveys the title thereto as provided in Paragraph 35(f) above and (ii) such
other instruments as shall be necessary to transfer the Leased Premises to
Tenant or its designee. Upon the completion of such purchase by Tenant or its
designee, this Lease and all obligations and liabilities of Tenant hereunder
shall terminate, except any Monetary Obligations of Tenant and any other
obligations of Tenant under this Lease, actual or contingent, which arise on or
prior to the expiration or termination of this Lease and which survive such
expiration or termination by their own terms. Any prepaid Monetary Obligations
paid to Landlord shall be prorated as of the Purchase Date, and the prorated
unapplied balance shall be deducted from the ROFO Purchase Price due to
Landlord; provided, that no apportionment of any Impositions shall be made upon
any such purchase.

                           (h)      If the completion of the purchase by Tenant
or its designee pursuant to this Paragraph 35 shall be delayed after the date
scheduled for such purchase, Basic Rent and Additional Rent shall continue to be
due and payable until completion of such purchase.

                  36.      Determination of Value.

                           (a)      Whenever a determination of Fair Market
Rental Value is required pursuant to any provision of this Lease, such Fair
Market Rental Value shall be determined in accordance with the following
procedure:

                                    (i)      Landlord and Tenant shall endeavor
to agree on Fair Market Rental Value on the date (the "Applicable Initial Date")
which is six (6) calendar months prior to the expiration of the then current
Term unless Tenant has previously exercised its option pursuant to Paragraph
5(b) not to have the Term automatically extended. Upon reaching such agreement,
the parties shall execute an agreement setting forth the amount of such Fair
Market Rental Value.

                                    (ii)     If the parties shall not have
signed such agreement within thirty (30) days after the Applicable Initial Date,
Tenant shall within fifty (50) days after the

                                       48
<PAGE>

Applicable Initial Date select an appraiser and notify Landlord in writing of
the name, address and qualifications of such appraiser. Within twenty (20) days
following Landlord's receipt of Tenant's notice of the appraiser selected by
Tenant, Landlord shall select an appraiser and notify Tenant of the name,
address and qualifications of such appraiser. Such two appraisers shall endeavor
to agree upon Fair Market Rental Value based on a written appraisal made by each
of them as of the Applicable Initial Date (and given to Landlord by Tenant). If
such two appraisers shall agree upon a Fair Market Rental Value, the amount of
such Fair Market Rental Value as so agreed shall be binding and conclusive upon
Landlord and Tenant.

                                    (iii)    If such two appraisers shall be
unable to agree upon a Fair Market Rental Value within twenty (20) days after
the selection of an appraiser by Landlord, then such appraisers shall advise
Landlord and Tenant of their respective determination of Fair Market Rental
Value and shall select a third appraiser to make the determination of Fair
Market Rental Value. The selection of the third appraiser shall be binding and
conclusive upon Landlord and Tenant.

                                    (iv)     If such two appraisers shall be
unable to agree upon the designation of a third appraiser within ten (10) days
after the expiration of the twenty (20) day period referred to in clause (iii)
above, or if such third appraiser does not make a determination of Fair Market
Rental Value within twenty (20) days after his selection, then such third
appraiser or a substituted third appraiser, as applicable, shall, at the request
of either party hereto (with respect to the other party), be appointed by the
President or Chairman of the American Arbitration Association in Detroit,
Michigan. The determination of Fair Market Rental Value made by the third
appraiser appointed pursuant hereto shall be made within twenty (20) days after
such appointment.

                                    (v)      If a third appraiser is selected,
Fair Market Rental Value shall be the average of the determination of Fair
Market Rental Value made by the third appraiser and the determination of Fair
Market Rental Value made by the appraiser (selected pursuant to Paragraph
36(a)(ii) hereof) whose determination of Fair Market Rental Value is nearest to
that of the third appraiser. Such average shall be binding and conclusive upon
Landlord and Tenant.

                                    (vi)     All appraisers selected or
appointed pursuant to this Paragraph 36(a) shall (A) be independent qualified
MAI appraisers (B) have no right, power or authority to alter or modify the
provisions of this Lease, (C) utilize the definition of Fair Market Rental Value
hereinabove set forth above, and (D) be registered in the State if same provides
for or requires such registration.

                                    (vii)    The Cost of the procedure described
in this Paragraph 36(a) above shall be borne by Tenant.

                           (b)      In determining Fair Market Rental Value, the
appraisers shall determine the amount that a willing tenant would pay, and a
willing landlord of a comparable building in a comparable location would accept,
at arm's length, to rent a building of

                                       49
<PAGE>

comparable size and quality as the Improvements, taking into account: (i) the
age, quality, condition (as required by the Lease) of the Improvements; (ii)
that the Leased Premises will be leased as a whole to a single user for its
highest and best use; (iii) a lease term of ten (10) years; (iv) an absolute
triple net lease; and (v) such other items that professional real estate
appraisers customarily consider.

                  37.      Miscellaneous.

                           (a)      The Paragraph headings in this Lease are
used only for convenience in finding the subject matters and are not part of
this Lease or to be used in determining the intent of the parties or otherwise
interpreting this Lease.

                           (b)      As used in this Lease, the singular shall
include the plural and any gender shall include all genders as the context
requires and the following words and phrases shall have the following meanings:
(i) "including" shall mean "including without limitation"; (ii) "provisions"
shall mean "provisions, terms, agreements, covenants and/or conditions"; (iii)
"lien" shall mean "lien, charge, encumbrance, title retention agreement, pledge,
security interest, mortgage and/or deed of trust"; (iv) "obligation" shall mean
"obligation, duty, agreement, liability, covenant and/or condition"; (v) "any of
the Leased Premises" shall mean "the Leased Premises or any part thereof or
interest therein"; (vi) "any of the Land" shall mean "the Land or any part
thereof or interest therein"; (vii) "any of the Improvements" shall mean "the
Improvements or any part thereof or interest therein"; (viii) "any of the
Equipment" shall mean "the Equipment or any part thereof or interest therein";
and (ix) "any of the Adjoining Property" shall mean "the Adjoining Property or
any part thereof or interest therein".

                           (c)      Any act which Landlord is permitted to
perform under this Lease may be performed at any time and from time to time by
Landlord or any person or entity designated by Landlord. Each appointment of
Landlord as attorney-in-fact for Tenant hereunder, if any, is irrevocable and
coupled with an interest. Landlord shall not unreasonably withhold or delay its
consent whenever such consent is required under this Lease, except as otherwise
provided herein and except that with respect to any assignment of this Lease or
subletting of any Related Premises not expressly permitted by the terms of this
Lease, Landlord may withhold its consent in accordance with the standards set
forth in Paragraph 21. In any instance in which Landlord agrees not to act
unreasonably, Tenant hereby waives any claim for damages against or liability of
Landlord which is based upon a claim that Landlord has unreasonably withheld or
unreasonably delayed any consent or approval requested by Tenant, and Tenant
agrees that its sole remedy shall be an action for declaratory judgment. If with
respect to any required consent or approval Landlord is required by the express
provisions of this Lease not to unreasonably withhold or delay its consent or
approval, and if it is determined in any such proceeding referred to in the
preceding sentence that Landlord acted unreasonably, the requested consent or
approval shall be deemed to have been granted; however, Landlord shall have no
liability whatsoever to Tenant for its refusal or failure to give such consent
or approval. Tenant's sole remedy for Landlord's unreasonably withholding or
delaying, consent or approval shall be as provided

                                       50
<PAGE>

in this Paragraph. Time is of the essence with respect to the performance by
Tenant of its obligations under this Lease.

                           (d)      Landlord shall in no event be construed for
any purpose to be a partner, joint venturer or associate of Tenant or of any
subtenant, operator, concessionaire or licensee of Tenant with respect to any of
the Leased Premises or otherwise in the conduct of their respective businesses.

                           (e)      This Lease and any documents which may be
executed by Tenant on or about the effective date hereof at Landlord's request
constitute the entire agreement between the parties and supersede all prior
understandings and agreements, whether written or oral, between the parties
hereto relating to the Leased Premises and the transactions provided for herein.
Landlord and Tenant are business entities having substantial experience with the
subject matter of this Lease and have each fully participated in the negotiation
and drafting of this Lease. Accordingly, this Lease shall be construed without
regard to the rule that ambiguities in a document are to be construed against
the drafter.

                           (f)      This Lease may be modified, amended,
discharged or waived only by an agreement in writing signed by the party against
whom enforcement of any such modification, amendment, discharge or waiver is
sought.

                           (g)      The covenants of this Lease shall run with
the land and bind Tenant, its successors and assigns and all present and
subsequent encumbrancers and subtenants of any of the Leased Premises, and shall
inure to the benefit of Landlord, its successors and assigns. If there is more
than one Tenant, the obligations of each shall be joint and several.

                           (h)      Notwithstanding any provision in this Lease
to the contrary, all Surviving Obligations of Tenant shall survive the
expiration or termination of this Lease with respect to any Related Premises.

                           (i)      If any one or more of the provisions
contained in this Lease shall for any reason be held to be invalid, illegal or
unenforceable in any respect, such invalidity, illegality or unenforceability
shall not affect any other provision of this Lease, but this Lease shall be
construed as if such invalid, illegal or unenforceable provision had never been
contained herein.

                           (j)      All exhibits attached hereto are
incorporated herein as if fully set forth.

                           (k)      Each of Landlord and Tenant hereby agree
that the State of Michigan has a substantial relationship to the parties and to
the underlying transaction embodied hereby, and in all respects (including,
without limiting the generality of the foregoing, matters of construction,
validity and performance) this Lease and the obligations arising hereunder shall
be governed by, and construed in accordance with, the laws of the State of
Michigan applicable to contracts made and performed therein and all applicable
law

                                       51
<PAGE>

of the United States of America. To the fullest extent permitted by law, Tenant
hereby unconditionally and irrevocably waives any claim to assert that the law
of any other jurisdiction governs this Lease. Any legal suit, action or
proceeding against Tenant arising out of or relating to this Lease may be
instituted in any federal or state court sitting in the County of Wayne, State
of Michigan, and Tenant waives any objection which it may now or hereafter have
to the laying of venue of any such suit, action or proceeding in such County and
State, and Tenant hereby expressly and irrevocably submits to the jurisdiction
of any such court in any suit, action or proceeding. Notwithstanding the
foregoing, nothing herein shall prevent or prohibit Landlord from instituting
any suit, action or proceeding in any other proper venue or jurisdiction in
which Tenant is located or where service of process can be effectuated.

                      [SIGNATURE PAGE FOLLOWS IMMEDIATELY]

                                       52
<PAGE>

                  IN WITNESS WHEREOF, Landlord and Tenant have caused this Lease
to be duly executed under seal as of the day and year first above written.

                                         LANDLORD:

                                         LT FITNESS (DE) QRS 15-53, INC.,
                                         a Delaware corporation

                                         By:____________________________________

                                         Title:_________________________________

                                         TENANT:

                                         LIFE TIME FITNESS, INC.,
                                         a Minnesota corporation

                                         By:____________________________________

                                         Title:_________________________________

                                       53
<PAGE>

                                                                       EXHIBIT A

                                    PREMISES

                               ROCHESTER HILLS, MI

The land referred to is situated in the State of Michigan, County of Oakland,
and is described as follows:

                           A parcel of land located in the Southeast 1/4 of
         Section 15, Town 3 North, Range 11 East, City of Rochester Hills,
         Oakland County, Michigan, described as: Commencing at the Southeast
         corner of said Section 15; thence due West 1003.63 feet along the South
         line of said Section 15 to the point of beginning; thence due West
         394.19 feet; thence North 01 degree 35 minutes 20 seconds East, 626.88
         feet; thence North 01 degree 52 minutes 23 seconds East, 450.74 feet;
         thence North 01 degree 46 minutes 04 seconds East, 433.27 feet; thence
         North 89 degrees 54 minutes 25 seconds East, 802.08 feet; thence South
         00 degrees 11 minutes 08 seconds East, 271.13 feet; thence South 89
         degrees 56 minutes 16 seconds East 489.72 feet to a point on the
         Westerly right of way line of Rochester Road (M-150, 120 feet wide);
         thence due South along the said Westerly right of way line, 70.00 feet;
         thence North 89 degrees 56 minutes 16 seconds West, 534.00 feet; thence
         due South 431.28 feet; thence due West 170.23 feet; thence due South
         115.13 feet; thence South 00 degrees 08 minutes 54 seconds West, 254.68
         feet; thence due West 223.34 feet; thence South 02 degrees 20 minutes
         00 seconds West, 369.31 feet to the point of beginning.

Parcel Identification No. 15-15-476-039

Property Address: 200 West Avon, Rochester Hills

                                   CANTON, MI

The land referred to is situated in the State of Michigan, County of Wayne, and
is described as follows:

         Unit No. 1, Canton Commercial Centre Condominium, according to the
         Master Deed recorded in Liber 32703, Pages 455 through 508, inclusive,
         Wayne County Records, and designated as Wayne County Condominium
         Subdivision Plan No. 575, together with the easements, rights and
         benefits in granted by the Master Deed and as described in Act 59 of
         the Public Acts of 1978, as amended.

Parcel Identification No. 71-050-01-0001-000

Property Address: 1700 Haggerty Road North, Canton, Michigan

                                       54
<PAGE>

                                                                       EXHIBIT B

                             MACHINERY AND EQUIPMENT

All fixtures, machinery, apparatus, equipment, fittings and appliances of every
kind and nature whatsoever now or hereafter affixed or attached to or installed
in any of the Leased Premises (except as hereafter provided), including all
electrical, anti-pollution, heating, lighting (including hanging fluorescent
lighting), incinerating, power, air cooling, air conditioning, humidification,
sprinkling, plumbing, lifting, cleaning, fire prevention, fire extinguishing and
ventilating systems, devices and machinery and all engines, pipes, pumps, tanks
(including exchange tanks and fuel storage tanks), motors, conduits, ducts,
steam circulation coils, blowers, steam lines, compressors, oil burners,
boilers, doors, windows, loading platforms, lavatory facilities, stairwells,
fencing (including cyclone fencing), passenger and freight elevators, overhead
cranes and garage units, together with all additions thereto, substitutions
therefor and replacements thereof required or permitted by this Lease, but
excluding Tenant's Property.

                                       55
<PAGE>

                                                                       EXHIBIT C

                             PERMITTED ENCUMBRANCES

                            ROCHESTER HILLS PREMISES

1.       Real estate taxes not yet due and payable in the year 2003 and
         thereafter.

2.       Easement executed between Sidney Weinberger and Marlene Weinberger and
         Golden Arch Realty as recorded in Liber 6269, page 701, Oakland County
         Records, (for drainage purposes).

3.       Easement for storm sewer executed by Sidney Weinberger and Marlene K.
         Weinberger, Walter W. Mickelson, Gertrude M. Mickelson, his wife and
         James R. Moran and Lynn K. Moran, his wife and Olde Colonie Place, as
         recited in Liber 7467, page 686, Oakland County Records, as amended by
         Amendment to Easement Agreement dated April 10, 2001, recorded January
         10, 2002 in Liber 24444, page 483, Oakland County Records.

4.       Easement for storm water retention pond and right of access of conduit
         and otherwise for the use, maintenance and repair of said water
         retention pond as recorded in Liber 6514, page 596, Oakland County
         Records.

5.       Storm sewer easement executed by Sidney Weinberger and Marlene K.
         Weinberger, his wife, Walter W. Mickelson and Gertrude M. Mickelson,
         his wife, James R. Moran and Lynn K. Moran, his wife, and Olde Colonie
         Place, as recited in Liber 7756, page 69, Oakland County Records, as
         amended by Amendment to Easement Agreement dated April 10, 2001,
         recorded January 10, 2002 in Liber 24444, page 483, Oakland County
         Records.

6.       Easement for sanitary sewer and storm water in favor of Harish Verma as
         set forth in Easement dated April 20, 1984, and recorded June 6, 1984,
         in Liber 8687, page 411, Oakland County Records.

7.       Easement for sanitary sewer in favor of City of Rochester Hills, as set
         forth in easement dated January 11, 1989, and recorded February 14,
         1989 in Liber 10791, page 176, Oakland County Records.

8.       Terms and conditions of an Easement Maintenance Agreement for ingress
         and egress purposes as set forth in Warranty Deed dated December 14,
         1984, and recorded February 18, 1986, in Liber 8909, page 221, Oakland
         County Records.

9.       Subject to the right of the public and of any governmental agency over
         the land used for Avon Road as shown on the survey made by Nowak &
         Fraus last revised September 26, 2003, designated as Job No. 7-A271-01.

                                       56
<PAGE>

10.      Watermain easement in favor of the City of Rochester Hills as recorded
         in Liber 10758, page 880, Oakland County Records.

11.      Easement in favor of Michigan Bell Telephone Company as recorded in
         Liber 12093, page 670, Oakland County Records.

12.      Storm Sewer Easement Agreement in favor of South Hill Associates dated
         April 19, 2001, and recorded December 11, 2001 in Liber 24220, page
         114, Oakland County Records.

13.      Storm Sewer Easement Agreement in favor of Sanyo Machine American
         Corporation, dated July 20, 2000, and recorded December 11, 2001, in
         Liber 24220, page 133, Oakland County Records.

14.      Watermain Easement from FCA Real Estate Holdings, LLC in favor of the
         City of Rochester Hills dated October 11, 2001 and recorded November 5,
         2002 in Liber 27002, Page 560.

15.      Agreement for Maintenance of Storm Water Detention System dated October
         11, 2001 by FCA Real Estate Holdings, LLC and the City of Rochester
         Hills, recorded November 5, 2002 in Liber 27002, Page 563.

                                 CANTON PREMISES

1.       Real estate taxes not yet due and payable in the year 2003 and
         thereafter.

2.       Easement granted to Western Townships Utilities Authority, as disclosed
         by instruments recorded in Liber 25086, page 369; Liber 25310, page 533
         and Liber 25310, page 538, Wayne County Records.

3.       Terms, provisions, agreements, obligations, easements, restrictions and
         rights of co-owners of units as disclosed in the Master Deed recorded
         in Liber 32703, Page 455, and contained in or created under Act 59 of
         the Public Acts of 1978 as amended.

4.       Terms, covenants and conditions of Declaration of Restrictions as
         contained in instrument recorded in Liber 34245, Page 369, Wayne County
         Records.

5.       Unrecorded easement for water main purposes in favor of the Charter
         Township of Canton as contained in Easement for Water Main dated March
         28, 2002.

                                       57
<PAGE>

                                                                       EXHIBIT D

                       BASIC RENT PAYMENTS & PREPAID RENT

A.       INITIAL TERM AND FIRST RENEWAL TERM.

<TABLE>
<CAPTION>
RENT YEAR            ANNUAL RENT          QUARTERLY RENT        PREPAID RENT
----------------------------------------------------------------------------
<S>                  <C>                  <C>                   <C>
1-5                  $ 4,247,100            $1,061,775          $  2,123,550
----------------------------------------------------------------------------
6-10                 $ 4,671,810            $1,167,953          $  2,335,905
----------------------------------------------------------------------------
11- 15               $ 5,138,991            $1,284,748          $  2,569,496
----------------------------------------------------------------------------
16-20                $ 5,652,890            $1,413,223          $  2,826,445
----------------------------------------------------------------------------
21 - 25              $ 6,218,179            $1,554,545          $  3,109,090
----------------------------------------------------------------------------
26 - 30              $ 6,839,997            $1,709,999          $  3,419,999
----------------------------------------------------------------------------
</TABLE>

Pro rata Basic Rent for the period from the date hereof through the end of
October, 2003 shall be paid on the date hereof.

B.       SECOND RENEWAL TERM AND THIRD RENEWAL TERM.

         1.       Basic Rent.

                  Annual Basic Rent for the first year of each of the second
Renewal Term and the third Renewal Term shall be an amount equal to the Fair
Market Rental Value as of the first day of the applicable Renewal Term, as
determined in accordance with Paragraph 36 of this Lease and shall be payable in
equal quarterly installments on each Basic Rent Payment Date. On the first day
of the sixth (6th) year of each of the second Renewal Term and the third Renewal
Term the annual Basic Rent then in effect shall be increased by ten percent
(10%) and the quarterly installments shall be adjusted accordingly.

         2.       Prepaid Rent.

<TABLE>
<CAPTION>
RENT YEAR                        PREPAID RENT
---------------------------------------------
<S>                              <C>
 31 - 35                         $  3,761,998
---------------------------------------------
 36 - 40                         $  4,138,198
---------------------------------------------
 41 - 45                         $  4,552,018
---------------------------------------------
 46 - 50                         $  5,001,220
---------------------------------------------
</TABLE>

C.       DEFINITIONS.

         "Rent Year" shall mean with respect to the first Rent Year the period
from November 1, 2003 through October 31, 2004 and with respect to each
successive Rent Year the period from November 1st through October 31st.

                                       58
<PAGE>

                                                                       EXHIBIT E

                           TERMINATION AMOUNT SCHEDULE

<TABLE>
<CAPTION>
                           Termination Amount      Termination Amount
Lease Year              Rochester Hills Premises     Canton Premises
----------              ------------------------     ---------------
<S>                     <C>                        <C>
    1-5                      $26,034,031.41          $19,785,863.87
   6-10                      $26,799,738.22          $20,367,801.05
   11-15                     $25,523,560.21          $19,397,905.76
  16 - 20                    $24,247,382.20          $18,428,010.47
1St option                   $22,971,204.19          $17,458,115.18
2nd option                   $22,971,204.19          $17,458,115.18
3rd option                   $22,971,204.19          $17,458,115.18
</TABLE>

                                       59
<PAGE>

                                                                       EXHIBIT F

                  PREMISES PERCENTAGE ALLOCATION OF BASIC RENT

<TABLE>
<S>                         <C>
Rochester Hills, MI         56.8%
Canton, MI                  43.2%
</TABLE>

If either of the Related Premises ceases to be subject to this Lease, the
percentage shown on this Exhibit F for the Related Premises which remains
subject to this Lease shall be 100%.

                                       60

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