Document:

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                                                                   Exhibit  10.4

                                LEASE AGREEMENT

                                    BETWEEN

                                STONERIDGE, INC.
                                      AND
                              HUNTERS SQUARE INC.

1.   Parties                                                          1
2.   Basic Lease Provisions And Definitions                           1
3.   Demise                                                           3
4.   Term                                                             3
5.   Minimum Rent                                                     4
6.   Security Deposit                                                 4
7.   Real Estate Taxes                                                4
8.   Use                                                              4
9.   Tenant's Additional Agreements                                   5
10.  Conduct Of Business                                              5
11.  Signs                                                            5
12.  Property In The Premises                                         5
13.  Trade Fixtures                                                   6
14.  Alterations                                                      6
15.  Liens                                                            6
16.  Common Areas                                                     6
17.  Utilities                                                        7
18.  Maintenance                                                      7
19.  Promotion And Advertising                                        8
20.  Assignment And Subletting                                        8
21.  Insurance                                                        9
22.  Fire Or Other Casualty                                          10
23.  Eminent Domain                                                  11
24.  Subordination, Attornment And Mortgagee's Approval              11
25.  Estoppel Certificate                                            12
26.  Bankruptcy                                                      12
27.  Default                                                         12
28.  Surrender Of Premises                                           13
29.  Holding Over                                                    14
30.  Access To Premises                                              14
31.  Quiet Enjoyment                                                 14
32.  Waiver                                                          14
33.  Notices And Payments                                            14
34.  Relationship Of Parties                                         15
35.  Exoneration                                                     15
36.  Renewal Options                                                 15
37.  Delays                                                          15
38.  Signature Of Parties                                            16
39.  Notary                                                          16
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                                  OFFICE LEASE

THIS LEASE AGREEMENT (the "Lease") effective as of the date of the signature of
the last party to sign, by and between the following parties:

1.  PARTIES

LANDLORD:                       HUNTERS SQUARE INC.
                                (the "Landlord")
                                whose address is:
                                Post Office Box 8827
                                Warren, Ohio  44484

TENANT:                         STONERIDGE, INC.
                                (the "Tenant"),
                                whose address is:
                                8700 East Market Street
                                Warren, Ohio  44484

Until the Landlord advises the Tenant to the contrary, in writing, Lewis
Development Corporation shall be the exclusive Agent to act on behalf of the
Landlord under this Lease, with full power and authority.

2.  BASIC LEASE PROVISIONS AND DEFINITIONS

The following are presented for the convenience of the parties and include a
summary of the basic provisions of this Lease.  Each reference in this Lease to
one of the following provisions shall be construed to incorporate all of the
terms provided for under such provisions:

2.1  Building

Phase IV of Hunters Square located at 8680 East Market Street, in the Township
of Howland, County of Trumbull and State of Ohio, as shown on attached Exhibit
A.  Landlord reserves the right to change the name of the Building, from time to
time.

2.2  Premises (Article 3)

The portion of the Building containing approximately 18,720 square feet (Floor
Area), plus additional lower area of 5,850 square feet and graphically
represented on attached Exhibit B, and excluding the exterior walls, roof,
storefront and land beneath the Premises which constitutes the entire Building.

2.3  Term (Article 4)

Ten (10) Lease Years beginning January 1, 2000, the "Commencement Date" and
ending December 31, 2009, the "Expiration Date", unless Landlord has not been
able to deliver the Premises to Tenant prior to the Commencement Date.  In such
event, Commencement Date shall be deferred to the day after Landlord delivers
possession of the Premises and the expiration date shall be ten years later and
the Rent shall be adjusted accordingly.  Landlord shall commence construction
with reasonable dispatch and due diligence with a view to achieving a January 1
Commencement Date.   In any event, Landlord shall complete construction by June
1, 2000, at the latest.   Landlord agrees to construct the Premises and Common
Areas (as hereinafter defined) in accordance with the floor plan and plan
specifications as described in the Addendum. The Term of this Lease includes all
extensions and renewals.

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2.4  Minimum Rent (Article 5)

YEARS 1 THROUGH 5

Three Hundred Thousand Nine Hundred Eighty Two and 00/100
Dollars ($300,982.00) per Lease Year, payable in advance
monthly installments of Twenty Five Thousand Eighty Two
and 00/100 Dollars ($25,082.00) each, subject to
adjustments as hereinafter provided. Monthly minimum rent:      $25,082.00

YEARS 6 THROUGH 10

The Minimum Rent will increase fifteen percent (15%) or
the CPI Index whichever is lower.

2.5 Security Deposit (Article 6) (Waived)

2.6 Permitted Use (Article 8)
Only for the use of a general business office.

2.7 Tax Charge (Article 7)
Initial monthly payment:                                          1,843.00

2.8 CAM and Insurance Charge (Article 16 and 22.2)
Initial monthly payment:                                          2,765.00

2.9 Additional Rent
Means all other charges and payments owing to Landlord by
Tenant.                                                               0.00
                                                                ----------
2.10 Monthly Payment Total
Initial monthly total of items set forth above in 2.4,
2.7, 2.8, 2.9:                                                  $29,690.00
                                                                ==========

2.11 Utility Commencement Date (Article 18): January 1, 2000 or upon occupancy,
whichever occurs first.

2.12  Price Index

The Price Index means the "All Items" portion of the "Consumer Price Index for
All Urban Consumers:  U. S. City Average" (1982-84 = 100), as  compiled by the
Bureau of Labor Statistics, United States Department of Labor.  If the Price
Index should in the future be  compiled on a different basis, appropriate
adjustments will be made for purposes of computations.  If the United States
Department of Labor no longer  compiles and publishes the Price Index, any
comparable index published by any other branch or department of the federal
government shall be used for the purpose of computing the CPI adjustments.  If
no such index is compiled and published by any branch or department of the
federal government, the statistics reflecting cost of living changes, as
compiled by any institution, organization or individual, generally recognized as
an authority by financial and insurance institutions shall be used as a basis
for CPI adjustments.

2.13  CPI Increase Formula

means the Price Index applicable on the first day of the month of Execution Date
as the denominator and the index number for the first month of each Lease Year
or other period being adjusted as the numerator,

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multiply the resulting fraction by the payment being adjusted; in no case may
the product be less than the payment being adjusted.

2.14  Floor Area
means the area determined by measuring from the exterior faces of all outside
walls and the centerline of common walls.

2.15  Rent
means Minimum Rent, Renewal Rent, and Additional Rent.

2.16  Renewal Options (Article 36)
Two (2) option(s) of renewal for five (5) years each following the Expiration
Date.

2.17  Renewal Rental  (Article 36)

The Minimum Rent for all renewal options will increase if the option is
exercised fifteen percent (15%) for each five year period after the original
term or the CPI Index whichever is lower.

2.18  Default Rate  (Article 27.6)

Any payment to be made by Tenant to Landlord for Rent, if not paid, when due,
shall, in addition to other charges which may be imposed, bear interest at the
rate of eighteen per cent (18%) per annum from the due date until the date paid.

3.  DEMISE

3.1  Landlord leases to Tenant, and Tenant rents from the Landlord the Premises.
This Lease is effective upon the Execution Date, but rent and other obligations
of the Tenant hereunder shall commence upon the Commencement Date.

4.  TERM

4.1  Tenant shall have access to the Premises prior to the Commencement Date for
the purpose of completing its fixturing and stocking of opening inventory, so
long as the activities of Tenant do not unreasonably interfere with the work of
Landlord Under Article 3.  The term shall begin on the Commencement Date and
continue until the Expiration Date, unless it is sooner terminated, as provided
in Article 23 or Article 27 or extended in accordance with the provisions of
Article 37.

4.2   Tenant shall use the Premises for the Permitted Use, and no other use or
purpose, during the Term.

4.3  Provided Tenant is not in default, Tenant has the option to terminate this
Lease after 7 years, 6 months (July 1, 2007) by giving notice no later than
December 31, 2006.  If Tenant fails to give written notice by December 31, 2006,
the option to cancel will be null and void.  Tenant agrees to pay one year's
complete minimum rent and common charges for July 1, 2007 through June 30, 2008.
Payment shall be on a monthly installment for the period July 1, 2007 through
June 30, 2008, in installments equal to the then Minimum Rent and common area
charges.

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5.  MINIMUM RENT

5.1   Tenant shall pay to Landlord the Minimum Rent or Renewal Rent during any
Renewal Term on or before the first day of each calendar month during the Term.
Minimum Rent for the first month is due at the time of the Execution of the
Lease.

5.2    In the event any installment of Minimum Rent, Renewal Rent or  Additional
Rent is overdue by ten (10) days or more, a "Late Charge" of  Three Hundred
Dollars ($300.00) may be charged by Landlord for the purpose of defraying the
expense incident to handling such delinquent payment, together with interest at
the Default Rate.

5.3   No payment of Rent of a lesser amount than the correct amount then due
shall be deemed to be other than a payment on account.  No endorsement or
statement on any check or other communication accompanying a check for payment
shall be deemed an accord and satisfaction.  Landlord may accept all such
payments without any prejudice to the right of Landlord to recover the full
balance due and to pursue remedies under Article 27.

6.  SECURITY DEPOSIT

6.1 Intentionally Omitted.

7.  REAL ESTATE TAXES

7.1  Beginning with the Commencement Date, Tenant shall pay the Tax Charge as
its proportionate share of the "Real Estate Tax Expense" which shall include all
real estate taxes and assessments both general and special imposed by federal,
state or local governmental authority or any other taxing authority having
jurisdiction over the Building, against the land, Building and all other
improvements within the Building, together with any and all expenses incurred by
Landlord in negotiating, appealing or contesting such taxes and assessments.
Real Estate Tax Expense shall include the face amount of real estate taxes but
shall not include any additional charges or penalties incurred by Landlord due
to late payment of real estate taxes.  Tenant's pro rata share shall be computed
by multiplying the total of such Real Estate Tax Expense by a fraction whose
numerator is the Floor Area of Tenant's Premises and whose denominator is the
number of square feet of Gross Leasable Area within that portion of the Building
included within the tax statement.  Any dispute as to the areas used in
determining the Real Estate Tax Expense shall be resolved by certification of
Landlord's architect.

7.2  Landlord shall annually estimate and adjust Tenant's Tax Charge based on
charges in the amount of the Real Estate Tax Expense.

7.3  If this Lease terminates (other than by reason of Tenant's default) during
a tax year, Tenant's initial obligation for Real Estate Tax Expense for a
partial tax year shall be computed on a per diem basis.

8.  USE

8.1  Tenant agrees that the Premises shall be used for the Permitted Use, and
ancillary and customary uses related thereto for no other purpose or use.

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9.  TENANT'S ADDITIONAL AGREEMENTS

9.1  Affirmative Obligations.  Tenant agrees at its own cost and expense to:
(a)  keep and maintain in a safe, neat and clean condition all portions of the
Premises, (b) abide by and observe all reasonable rules and regulations
established by Landlord, from time to time, with respect to the operation of the
Building and its Common Areas; (c) pay, when due, all personal property taxes
assessed against Tenant's fixtures and furnishings, all taxes arising out of the
operation of Tenant's business, and pay for all license fees, occupational taxes
and other governmental charges assessed by reason of Tenant's use or occupancy
of the Premises.

9.2  Negative Obligations.  Tenant agrees that it shall not, without first
obtaining Landlord's prior written consent, which shall not be unreasonably
witheld or delayed:  (a) permit the Premises to be used in any way which will
injure the reputation of the same (or of the Building), (b) use, occupy, suffer
or permit any use of the Premises which would (i) violate any law, ordinance or
regulation, (ii) constitute a nuisance, or (iii) constitute an extra-hazardous
use, (c) place a load on any floor in the premises or within the interior of the
Building which exceeds the floor load per square foot which such floor was
designed to carry, or install, operate or maintain therein any heavy item of
equipment except in such manner as to achieve proper distribution of the weight;
(d) erect any radio or television aerial or other devise on the roof or exterior
walls of the Premises or the building in which the Premises are located, nor
penetrate the roof for any purpose.

10.  CONDUCT OF BUSINESS

10.1  At all times Tenant shall conduct its business, if any, in a reputable
manner.

11.  SIGNS

11.1   Tenant may, but shall not be obligated to, erect its exterior sign
subject to Landlord's prior written approval as to number, size, color, type,
content and location of such sign.

12.  PROPERTY IN THE PREMISES

12.1  All leasehold or building improvements or additions, which when installed
or completed, are permanently attached to the Building, shall become and remain
the property of the Landlord.  All store fixtures, trade equipment or trade
fixtures and signs (including signs erected outside the Premises) shall remain
the property of the Tenant.

12.2  Tenant agrees that all personal property of every kind or description
which may at any time be in the Premises shall be at the Tenant's sole risk, or
at the risk of those claiming under the Tenant.  Landlord shall not be
responsible or liable to Tenant for any loss or damage that may be occasioned by
the acts or omissions of persons occupying any space adjacent to or adjoining
Tenant's Premises, or any part thereof.  Landlord shall not be responsible or
liable to Tenant for any loss or damage resulting to Tenant or its property or
its business from roof leaks, water, gas, steam, fire, or the bursting, stoppage
or leaking water and/or sewer pipes, or from the heating or plumbing fixtures,
or from electric wires, or from gas or odors, or caused in any manner
whatsoever, provided that if any such event shall render the Premises
untenantable for a period in excess of seven (7) days, rent shall abate until
occupancy is restored.

                                                                          Page 5
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13.  TRADE FIXTURES

13.1  All trade fixtures and operating equipment installed by Tenant in the
Premises shall be kept in good working order and repair during the Term.

13.2  Tenant may, at the expiration of the Term, remove all the Tenant's trade
fixtures and operating equipment which can be removed without injury to, or
defacement of the Premises, provided all Rents are paid in full and Tenant is
not otherwise in default hereunder.  Any and all damage to the Premises or to
the Building (resulting from or caused by such removal) shall be promptly
repaired at Tenant's expense.

14.  ALTERATIONS

14.1  Tenant agrees not to make any alterations of or upon any part of the
Premises which affect the structure or the building systems except with the
prior written consent of the Landlord, which shall not be unreasonably withheld
or delayed.  Tenant further agrees, in the event of making permitted
alterations, to indemnify and save harmless the Landlord from all expense,
liens, claims or damages to either persons, property, the Premises or the
Building, arising out of or resulting from the undertaking or making of
alterations.

14.2  All alterations made by Tenant shall consist of reasonable material
installed in a workmanlike manner by duly qualified (and licensed, when
applicable) workmen and artisans and in compliance with all applicable laws,
rules and regulations.

15.  LIENS

15.1  No work which Landlord permits Tenant to do or which Tenant is obligated
to perform, whether in the nature of erection, construction, alteration or
repair, shall be deemed to be for the immediate use and benefit of Landlord so
that no mechanics' or other lien or encumbrance or charge shall be allowed
against the Building by reason of any consent given by Landlord to Tenant to
improve the Premises.

15.2  Prior to commencing any such work, Tenant shall prepare, execute and file
a Notice of Commencement if required by Law.  In the event any mechanics' or
other lien at any time is filed against the Premises or the Building by reason
of work or materials performed or furnished, or alleged to be performed or
furnished, to Tenant or anyone holding the Premises through or under Tenant,
Tenant shall within 60 days thereafter cause the same to be discharged of record
by payment, deposit, bonding in an amount satisfactory to the Landlord, or by
order of court of competent jurisdiction.  If Tenant shall fail to cause such
lien forthwith to be so discharged or bonded after being notified of the filing
thereof, then, in addition to any other right or remedy of Landlord, Landlord
may discharge the same by paying the amount claimed to be due or bonding or
deposit procedure, and the amount so paid by Landlord including reasonable
attorney's fees, with interest thereon at the Default Rate, and costs and
allowances, shall constitute Additional Rent payable and shall be paid by Tenant
to Landlord on demand.

16.  COMMON AREAS

16.1  Landlord shall make available within and outside of the Building such
Common Areas as are described in Exhibit B.  Common Areas means, but is not
limited to, any parking areas, driveways, service courts, access and egress
roads, sidewalks, opened and enclosed courts, landscaped and planted

                                                                          Page 6
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areas, fire corridors, meeting areas and public restrooms.  Landlord shall
operate, manage, equip, light, repair and maintain the Common Areas for their
intended purposes in such manner as Landlord shall in its sole discretion, from
time to time, determine, and may, from time to time, change the size, location,
elevation, nature and/or use of any buildings, structures, booths therein or
thereon and move or remove the same, or to construct additional structures
within the Common Areas.

16.2    Tenant, its officers, (if any), employees, customers and invitees shall
have the non-exclusive right in common with Landlord and all others to whom
Landlord has or may hereafter grant rights, to use the Common Areas, subject to
such rules and regulations as Landlord may impose, from time to time.  Landlord
may, at any time and from time to time, close any Common Area to make repairs or
changes or to prevent the acquisition of public rights in such area or to
discourage unauthorized parking.

16.3  Tenant agrees to pay to Landlord its proportionate share of all costs and
expenses (the "CAM Charge") incurred by Landlord in each Lease Year for (i) the
Common Areas,  (ii) the roofs of the Building, and (iii) all other areas and
facilities adjoining or used in connection with the Building which include, but
are not limited to, operating, equipping, policing and protecting, providing
sanitation, sewers, trash removal, pest control, repair, maintenance and
replacement of sidewalks, signs, displays, directories, landscaping, vegetation,
pavement, parking lot, driveways, entrance ways and lighting fixtures, cleaning,
painting, striping, security control and fire protection, premiums for insurance
for property damage, liability and casualty insurance, full compensation and
benefits of personnel used to perform services.  The initial monthly payment
shall be adjusted effective on the first day of the first month of the second
Lease Year and on the first day of the first month of each Lease Year thereafter
in accordance with the CPI Increase Formula.

17.  UTILITIES

17.1  Not later than the Utility Commencement Date, Tenant shall subscribe for
all utilities in its own name.  If Tenant does not, Landlord will charge Tenant
an administrative fee of 15% of each utility bill delivered to Landlord for
utility services furnished to Tenant and billed to Landlord.  From the Utility
Commencement Date, Tenant agrees to pay for all utility services rendered or
furnished to the Premises including gas, water, electricity, sprinkler charges
assessed by any governmental authority, fire line charges, sewer rental, sewage
treatment facilities and the like, together with all taxes levied or other
charges on such utilities and governmental charges based on utility consumption,
standby utility capacity or potential utility use.  Any such charges for
services supplied by Landlord, or charges for utilities which may be rebilled by
the Landlord, shall be due and payable within ten (10) days after billings are
rendered to Tenant.  In no event shall Landlord be liable for the quality,
failure or interruption of such services to the Premises.

18.  MAINTENANCE

18.1   Landlord agrees to keep and maintain (except as hereinafter set forth),
the roof and other exterior portions of the Building premises, the Common Areas
as determined in accordance with Section 16.1, and the plumbing, sewage and
utility lines outside the building in which the Premises are located; except
however, that Landlord shall not be responsible for the following: doors, door
closers and operators and windows; and damage caused by any act or negligence of
Tenant, its employees, agents, invitees, licensees or contractors.  Other than
as herein provided, Landlord shall not be responsible to make any

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other improvements or repairs of any kind in or upon the Premises. Landlord will
repair any defects in Landlord's work described in the Addendum.

18.2  Tenant covenants and agrees to keep and maintain at its own cost and
expense in good order, condition and repair the Premises and every part thereof,
except as hereinabove provided, including, but without limitation, the exterior
and interior portions of all doors, door closers and operators, windows, plate
glass and showcases surrounding the Premises, all plumbing and sewage facilities
and electrical systems within the Premises, fixtures, heating, air-conditioning
and electrical equipment, utility lines under the floor of Tenant's Premises,
and interior walls, floors and ceilings, signs and all interior building
appliances and similar equipment. Tenant further agrees to replace any of said
equipment when necessary at its own cost and expense.  Tenant agrees to be
responsible for any damage to the Premises or to the Building, or any part
thereof, including but not limited to the roof, exterior walls, loading dock
areas, landscaping, planted areas, parking lot, driveways, entrance ways and
signs caused by any act or negligence of Tenant, its employees, agents,
invitees, licensees or contractors.

18.3  Tenant, at its cost, shall change all air conditioning filters at least
two (2) times a year, and shall have the HVAC system professionally inspected
and generally serviced at least twice per year.  Tenant shall furnish Landlord
with a copy of its service contract and copies of all service reports received
from the service contractor.

18.4    At all times Tenant will not use electrical current in excess of the
electrical distribution system, nor make any alterations or additions to
Tenant's electrical system without the prior written consent of Landlord.  No
electrical equipment shall be placed in the Premises which overloads any
electrical lines.  All changes in electrical lines shall only be made with prior
written consent of Landlord and using only qualified and licensed electricians.
The Electrical System shall be installed consistent with the specifications of
Tenant.

19.  PROMOTION AND ADVERTISING

19.1  Intentionally Omitted.

20.  ASSIGNMENT AND SUBLETTING

20.1  Tenant agrees not to assign this Lease or to sublet the whole or any part
of the Premises, without the prior written consent of the Landlord which shall
not be unreasonably withheld or delayed.  Any assignment or subletting, shall
not relieve Tenant from liability for payment of Rent or for the obligation to
keep and be bound by the provisions, conditions and covenants of this Lease,
unless this Lease may be amended by agreement between such assignee or subtenant
and Landlord, which shall occur if any assignee shall be of materially
comparable economic strength as Tenant. If any assignment or subletting, even
with the consent of Landlord, results in Rent in an amount greater than that
provided for in this Lease, then such excess shall belong to the Landlord and
shall be payable to Landlord as Additional Rent. In the event any assignment or
subletting not releasing Tenant, the acceptance of rent from any other person
shall not be deemed to be a waiver of any of the provisions of this Lease or to
be a consent to the assignment of this Lease or subletting of the Premises.

20.2  An assignment for the benefit of creditors or by operation of law shall
not be effective to transfer any rights to assignees without the prior written
consent of the Landlord.

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20.3  If Tenant, for any reason, requests the Landlord to find a substitute
occupant for the Premises or submits to Landlord a request for approval of an
assignment or subletting by Tenant, Tenant shall pay to Landlord Landlord's
administrative costs, overhead and fees of counsel in connection with any such
request, but not less than a minimum of Two Hundred Fifty and 00/100 Dollars
($250.00).

21.  INSURANCE

21.1  Tenant agrees to provide on or before the date of possession of the
Premises and to keep in force during the Term: (1) comprehensive general
liability insurance for the mutual benefit of Landlord and Tenant relating to
the Premises and its appurtenances in an amount of not less than Two Million
($2,000,000) Dollars per occurrence, which shall name Landlord as an additional
insured; (2) fire and extended coverage, vandalism, malicious mischief and
special extended coverage insurance in an amount adequate to cover the cost of
replacement of all leasehold or building improvements in the Premises which were
originally constructed or provided by or on behalf of Tenant as well as the cost
of replacement of all fixtures, equipment, decorations, contents and personal
property therein; and (3) plate glass insurance with respect to all plate and
other glass in the Premises.  Tenant agrees to deliver to Landlord at least
fifteen (15) days prior to the time such insurance is first required to be
carried by Tenant, and thereafter at least fifteen (15) days prior to the
expiration of any such policy, either a duplicate original or a certificate and
true copy of all policies procured by Tenant in compliance with its obligations
hereunder, together with evidence of payment therefore, the ("Insurance").

21.2  The Insurance shall be written by one or more responsible insurance
companies authorized to sell casualty insurance in the State reasonably
satisfactory to Landlord and shall contain endorsements that : (1) such
insurance may not be canceled or amended with respect to Landlord (or its
designee(s)), except upon ten (10) days written notice by registered mail to
Landlord (and such designee(s)), by the insurance company; and (2) Tenant shall
be solely responsible for payment of premiums for the Insurance.  In the event
Tenant fails to furnish the Insurance, the Landlord may obtain the Insurance and
the premiums shall be paid by Tenant to the Landlord upon demand.

21.3  Tenant will indemnify, save harmless, and defend Landlord from and against
any and all claims and demands in connection with any accident, injury or damage
whatsoever caused to any person on property arising directly or indirectly out
of the Tenant's initial construction, alteration, renovation, remodeling and/or
fixturing of the Premises (whether or not occurring prior to the Commencement
Date), or out of the business conducted in the Premises or occurring in, on or
about the Premises or any part thereof, or arising directly or indirectly from
any act or omission of Tenant or any of its contractors, subcontractors or
concessionaires or subtenants or their respective licensees, servants, agents,
employees, contractors or subcontractors, and from and against any and all
costs, expenses and liability incurred in connection with any such claim or
proceeding brought thereon.  Landlord will indemnify, save harmless, and defend
Tenant from and against any and all claims and demands in connection with any
accident, injury or damage whatsoever caused to any person on property arising
directly or indirectly out of the Landlord's initial construction, alteration,
renovation, remodeling and/or fixturing of the Premises (whether or not
occurring prior to the Commencement Date), or out of the business conducted in
the Premises or occurring in, on or about the Premises or any part thereof, or
arising directly or indirectly from any act or omission of Landlord or any of
its contractors, subcontractors or concessionaires or subtenants or their
respective licensees, servants, agents, employees, contractors or
subcontractors, and from and against any and all costs, expenses and liability
incurred in connection with any such claim or proceeding brought thereon.

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21.4  Each insurance policy carried by Landlord or Tenant and insuring all or
any part of the Building, the Premises, including improvements, alterations and
changes in and to the Premises made by either of them and Tenant's trade
fixtures and contents therein, shall be written in a manner to provide that the
insurance company waives all right of recovery by way of subrogation against
Landlord or Tenant, as the case may be, in connection with any loss or damage to
the Premises, property or businesses, building and contents caused by any of the
perils covered by fire and extended coverage, and business interruption
insurance, or for which either party may be reimbursed as a result of insurance
coverage affecting any loss suffered by it.  So long as the policy or policies
involved can be so written and maintained in effect, neither Landlord, nor
Tenant, shall be liable to the other for any such loss or damage, provided,
however, that the foregoing waivers of liability given by Landlord and Tenant to
each other shall apply only to the extent of any recovery made by the parties
under any policy of insurance now or hereafter issued.

21.5    Landlord agrees to maintain and include the premiums thereon as part of
the CAM Charge: (1) comprehensive general liability insurance relating to the
Building and its Common Areas on an occurrence basis in the minimum amount of
Two Million ($2,000,000.00) Dollars; (2) fire and extended coverage, vandalism,
malicious mischief and special extended coverage insurance to the extent of the
replacement value of the buildings and improvements originally constructed by
Landlord.

22.  FIRE OR OTHER CASUALTY

22.1  If the Premises (or any part thereof) are damaged or destroyed by any
insured casualty, Landlord shall, except as otherwise provided herein, and to
the extent it recovers proceeds from such insurance, repair and/or rebuild the
same with reasonable diligence.  Landlord's obligation hereunder shall be
limited to the building and improvements originally provided by Landlord at the
Commencement Date of the Term.  Landlord shall not be obligated to repair,
rebuild or replace any property belonging to Tenant or any improvements to the
Premises furnished by Tenant.  If there should be a substantial interference
with the operation of Tenant's business in the Premises as a result of such
damage or destruction which requires Tenant to temporarily close its business to
the public, the Minimum Rent shall abate.  Unless this Lease is terminated by
Landlord or Tenant as herein provided, Tenant shall, at its cost and expense,
repair, restore, redecorate and refixture the Premises and restock the contents
thereof in a manner and to at least a condition equal to that existing prior to
such damage or destruction, except for the building and improvements to be
reconstructed by Landlord as above set forth, and the proceeds of all insurance
carried by Tenant on the property, decorations and improvements as well as
fixtures and contents in the Premises shall be held in trust by Tenant for such
purposes.  Tenant agrees to commence such work within ten (10) days after the
date of such damage or destruction or the date Landlord completes any
reconstruction required to be completed by it pursuant to the above, whichever
date is later, and Tenant shall diligently pursue such work to its completion.

22.2  Notwithstanding anything to the contrary contained in the preceding
subsection 22.1 or elsewhere in this Lease, Landlord or Tenant at their
respective options, may terminate this Lease on thirty (30) days notice to the
other party, given within ninety (90) days after the occurrence of any damage or
destruction if: (1) the Premises are damaged or destroyed as a result of a risk
which is not covered by Landlord's insurance, or (2) the Premises are damaged
and the cost to repair the same shall be more than fifty (50%) percent of the
cost of replacement thereof, or (3) the Premises are damaged during the last
three (3) years of the term, or (4) the building of which the Premises is a part
is damaged to the extend of fifty (50%) percent or more of the then monetary
value thereof (whether the Premises are damaged or not) or (5) if any or all of
the buildings or Common Areas of the Building are damaged (whether or not the
Premises are damaged) to such an extent that, in the sole judgment of Landlord,
the Building cannot be operated as an integral unit.

                                                                         Page 10
<PAGE>

23.  EMINENT DOMAIN

23.1  If the whole or any part of the Premises is taken by any public or quasi-
public authority under the power of eminent domain, condemnation or
expropriation or in the event of a conveyance in lieu thereof, then this Lease
shall terminate on the date when Tenant is required to yield possession thereof.

23.2  If more than twenty (20%) percent of (a) the Floor Area of the Building or
(b) the Common Areas, shall be taken or conveyed under Section 23.1, Landlord
shall have the right, at its option, to be exercised by notice in writing
delivered to Tenant, to terminate this Lease effective, at the option of
Landlord, either upon the date title vests in the condemning authority, or upon
the date Landlord is required to deliver possession of the part taken or
conveyed.

23.3  In the event of a taking under the power of eminent domain of the
Premises, Common Areas, or any other portion of the Building, whether whole or
partial, all compensation awarded for such taking of the fee and leasehold
estate, or consideration paid for a conveyance in lieu of condemnation, as
damages or otherwise, shall belong to and be the property of Landlord, except
that Tenant shall be entitled to recover from the condemning authority, but not
from Landlord, such amounts as may be separately awarded to Tenant for the value
of its leasehold estate and for removal expenses, business dislocation damages
and moving expenses.

24.  SUBORDINATION, ATTORNMENT AND MORTGAGEE'S APPROVAL

24.1  The Landlord reserves the right to subordinate this Lease at all times to
the lien of any mortgage or mortgages now or hereafter placed upon the
Landlord's interest in the Premises and on the land and buildings of the
Building (the holder of any such mortgage hereinafter referred to as
"Mortgagee"), and to any and all advances to be made under such mortgages, and
all renewals, modifications, extensions, consolidations and replacements thereof
provided that the Mortgagee shall grant nondisturbance assurances satisfactory
to Tenant.

24.2  Tenant agrees to execute and deliver, upon demand, such further instrument
or instruments subordinating this Lease on the foregoing basis to the lien of
any such mortgage or mortgages as shall be reasonably desired by the Landlord
and any Mortgagees or proposed Mortgagees provided that the Mortgagee shall
grant nondisturbance assurances satisfactory to Tenant.

24.3  Tenant shall, in the event of the sale or assignment of Landlord's
interest in the Building, or in the event of any proceedings brought for the
foreclosure of, or in the event of the exercise of the power of sale under any
mortgage covering the Building, attorn to and recognize such purchase or
Mortgagee as Landlord under this Lease, and in any such events, Landlord named
herein shall not thereafter be liable on this Lease.

24.4  If any Mortgagee shall have given prior written notice to Tenant that it
is a holder of a mortgage as described in Section 24.1 and such notice includes
the address to which notices to such Mortgagee are to be sent, then Tenant
agrees to give to such Mortgagee notice simultaneously with any notice given to
Landlord to correct any default of Landlord as hereinabove provided and agrees
that the Mortgagee shall have the right, within sixty (60) days after receipt of
said notice, to correct or remedy such default before Tenant may take any action
under this Lease by reason of such default except when there is an emergency in
which event the remedy shall adequately address the situation then obtaining.

                                                                         Page 11
<PAGE>

25.  ESTOPPEL CERTIFICATE

25.1  At any reasonable time, and from time to time, upon the written request of
Landlord or any Mortgagee, Tenant, within ten (10) days of the date of such
written request, agrees to execute and deliver to Landlord and/or such
Mortgagee, a written statement: (a) ratifying this Lease if there has been no
default by Landlord; (b) confirming the Commencement and expiration dates of the
Term; (c) certifying that Tenant is in occupancy of the Premises and that this
Lease is in full force and effect and has not been modified, assigned,
supplemented or amended, except by such writings as shall be stated; (d)
certifying that all conditions and agreements under this Lease to be satisfied
and performed have been satisfied and performed, except as shall be stated; (e)
certifying that Landlord is not in default under this Lease and there are no
defenses or offsets against the enforcement of this Lease by Landlord, or
stating the defaults and/or defenses claimed by Tenant; (f) reciting the amount
of advance rental, if any, paid by Tenant and the date to which rental has been
paid; (g) reciting the amount of security deposited with Landlord, if any; and
(h) any other information which Landlord or the Mortgagee shall reasonably
require.

26.  BANKRUPTCY

26.1  This is a Lease of real property in a Building within the meaning of
Subsection 365 (b) (3) of the Bankruptcy Code, 11 U. S. C., Section 101 et. seq.
                                                                        --------
("Bankruptcy Code").

26.2  Tenant agrees that if, at any time, Tenant becomes a debtor under the
Bankruptcy Code or is adjudged bankrupt or insolvent under the laws of any
state, or makes a general assignment for the benefit of creditors, or if a
receiver of Tenant's property in the Premises is appointed and shall not be
discharged within thirty (30) days of such appointment, then Landlord may, at
its option, declare this Lease terminated and shall forthwith be entitled to
immediate possession of the Premises except that if any such proceedings are
pursuant to the Bankruptcy Code, then Landlord shall be entitled to all the
rights and remedies accorded landlords, including without limitation those set
forth in said Bankruptcy Code.

26.3  If this Lease is assigned to any person or entity pursuant to the
provisions of the Bankruptcy Code to the extent provided in Article 20, any and
all monies or other considerations payable or otherwise to be delivered in
connection with such assignment, shall be paid or delivered to Landlord, shall
be and remain the exclusive property of Landlord, and shall not constitute
property of Tenant or of the estate of Tenant within the meaning of the
Bankruptcy Code.  Any and all monies or other considerations constituting
Landlord's property under the preceding sentence not paid or delivered to
Landlord shall be held in trust for the benefit of Landlord and be promptly paid
or delivered to Landlord.  Any person or entity to which this Lease is assigned
pursuant to the provisions of the Bankruptcy Code shall be deemed without
further act or deed to have assumed all of the obligations arising under this
Lease on and after the date of such assignment.  Any such assignee shall, upon
demand, execute and deliver to Landlord an instrument confirming such
assignment.

27.  DEFAULT

27.1  All rights and remedies of Landlord shall be cumulative, and none shall
exclude any other rights or remedies allowed by law or in equity.  The
occurrence of any of the following shall constitute a default and breach of this
Lease by Tenant:

27.2  If Tenant shall fail, neglect or refuse to pay any installment of Rent at
the time and in the amount required, or to pay any other monies agreed by it to
be paid promptly when and as the same shall become due and payable, and if any
such default should continue for a period of more than ten (10) days; or if

                                                                         Page 12
<PAGE>

27.3  Or shall fail, neglect or refuse to keep and perform any of the other
covenants, conditions, stipulations or agreements herein contained, and in the
event any such default shall continue for a period of more than ten (10) days
after notice thereof is given in writing to Tenant by Landlord (provided,
however, that if the cause for giving such notice involves the making of repairs
or other matters reasonably requiring a longer period of time than the period of
such notice, Tenant shall be deemed to have complied with such notice so long as
it has commenced to comply with said notice within the period set forth in the
notice and is diligently prosecuting compliance of said notice).

27.4  In the event of any such default or breach of this Lease by Tenant,
Landlord shall have the right and option to declare the entire Minimum Rent or
Renewal Rent due and CAM Charges for the balance of the term hereof immediately
due and payable by Tenant, and shall have any or all of the remedies hereinafter
set forth, and further, in the event of such default or breach of this Lease by
Tenant, the Tenant does hereby authorize and fully empower Landlord to cancel or
annul this Lease at once and reenter and remove all persons and their property,
and such property may be stored in a public warehouse or elsewhere at the cost
of the Tenant, all without service of notice or resort to legal process and
without being deemed guilty of any manner of trespass and without prejudice to
any remedies which might otherwise be used by Landlord.

27.5  Any payment required to be made by Tenant under the provisions of this
Lease not made by Tenant when due shall be deemed to be due and payable by
Tenant to Landlord on demand with interest thereon from the date when the
particular amount became due to the date of payment thereof to Landlord.  The
interest shall be at the rate of eighteen (18%) per annum from the due date
until the date paid, the "Default Rate".

27.6  The Landlord may, however, at any time after such default or violation of
conditions or covenants, reenter and take possession of the Premises and remove
all of Tenant's property without such re-entry working a forfeiture of the Rent
to be paid and the agreements and conditions to be kept and performed by Tenant
for the full Term.  In such event, Landlord shall have the right, but not the
obligation, to divide or subdivide the Premises in any manner Landlord may
determine and to lease or let the same or portions thereof for such periods of
time and at such rentals and for such use and upon such covenants and conditions
as Landlord may elect, applying the net rentals from such letting first to the
payment of Landlord's expenses incurred in dispossessing Tenant and the cost and
expense of making such improvements, alterations and repairs in the Premises as
may be necessary in order to enable Landlord to relet the same, and to the
payment of any brokerage commissions or other necessary expenses of Landlord in
connection with such reletting.  The balance, if any, shall be applied by
Landlord from time to time on account of the payments due or payable by Tenant
hereunder with the right reserved to Landlord to bring such action or
proceedings for the recovery of any deficits remaining unpaid as Landlord may
deem favorable from time to time without obligation to await the end of the term
hereof for the final determination of Tenant's account.

28.  SURRENDER OF PREMISES

28.1  Tenant agrees to vacate, remove from and surrender the possession of the
Premises to Landlord upon the expiration of the Term, without any specific
notice to vacate, and upon any earlier termination of this Lease, as herein
provided, in as good condition and repair as the same shall be at the
commencement of Term or may have been put by the Landlord during the continuance
thereof, ordinary wear and tear excepted. Tenant agrees to give to Landlord
written notice of its intention to terminate its tenancy, if known, and its
possession rights under this Lease at the expiration of the Term, such notice to
be given at least four (4) months prior to the Expiration Date.

                                                                         Page 13
<PAGE>

29.  HOLDING OVER

29.1  In the event Tenant remains in possession of all or any part of the
Premises (or fails to deliver the keys to Landlord as required by Article 28
and/or execute the Premises Vacation Report) after the expiration of the Term,
Tenant shall be deemed to be occupying the Premises as a tenant from month to
month at a monthly rental equal to one hundred and fifty (150) percent of the
amount otherwise due the sum of (i) the monthly installment of Minimum Rent or
Renewal Rent payable during the last month of the Term, and (ii) one-twelfth
(1/12th) of all items of additional rent or other charges payable or paid during
the last Lease Year.  Such continued occupancy shall not defeat Landlord's
rights to regain possession of the Premises.

30.  ACCESS TO PREMISES

30.1  Tenant agrees to permit the Landlord or its agents to inspect or examine
the Premises at any reasonable time, and to permit the Landlord to make such
repairs or improvements to the building of which the Premises are a part that
the Landlord may reasonably deem desirable or necessary for its preservation and
which the Tenant has not covenanted herein to do or has failed to do.  In the
event of an emergency, Landlord shall have the right to enter the Premises
without Tenant's permission, but shall immediately notify Tenant.

31. QUIET ENJOYMENT

31.1   Landlord agrees that if the Tenant shall comply with all of the
provisions to be performed on the Tenant's part, the Tenant shall, at all times
during the Term, have the peaceable and quiet enjoyment and possession of the
Premises without any manner of hindrance from any person whomsoever.

32. WAIVER

32.1   No waiver of any of the provisions or of the breach of any provision of
this Lease shall be taken to constitute a waiver of any subsequent breach of
such provision, nor to justify or authorize the nonobservance on any other
occasion of the same or any other provision; nor shall the acceptance of Rent by
the Landlord at any time when the Tenant is in default under any provision be
construed as a waiver of such default or of the Landlord's right to terminate
this Lease on account of such default; nor shall any waiver or indulgence
granted by either party to the other be taken as an estoppel against the
granting party.

33. NOTICES AND PAYMENTS

33.1  Any bill, statement, notice, communication or payment which Landlord or
Tenant may desire to be required to give to the other party shall be in writing
and shall be sent to the other party by registered or certified mail to the
address specified in Article 1 or to such other address as either party shall
have designated to the other by like notice, and the time of the rendition of
such shall be when same is deposited in an official United States Post Office,
postage prepaid.

33.2  All payments required under this Lease are to be paid in legal tender and
lawful money of the United States or the equivalent, at Landlord's above
specified address.

                                                                         Page 14
<PAGE>

34. RELATIONSHIP OF PARTIES

34.1  Nothing contained in this Lease shall be deemed or construed by the
parties hereto or by any third party to create the relationship of principal and
agent or of partnership or of joint venture or of any association whatsoever
between Landlord and Tenant.

35. EXONERATION

35.1  The Landlord, or any successor in interest, including an individual, joint
venture, tenancy in common, firm, partnership, general or limited, or
corporation shall not be subject to personal liability or on the members of such
joint venture, tenancy in common, firm, partnership, or corporation in respect
to any of the provisions of this Lease.  The Tenant shall look solely to the
equity of the Landlord in the Building and the rents, issues and profits derived
therefrom for the satisfaction of the remedies of the Tenant in the event of a
breach by the Landlord.

36. RENEWAL OPTIONS

36.1  If Tenant is not in default and is in full operation during the entire
final year of the Term, Tenant, at its option, shall be entitled to renew this
Lease for  two (2) additional term(s) of five (5) year(s) (each) by giving a
written notice of its intention to do so to the Landlord not less than one (1)
year prior to the Expiration Date, or one (1) year before the end of the next
prior renewal period, if it has been exercised.  Said renewals(s) shall be upon
all the terms and provisions of this Lease, except that the Minimum Rent in
effect for the last year of the Term shall be adjusted to fifteen (15%) increase
or CPI whichever is lower, provided, however, that in no event shall the rent
exceed the fair market rental for the premises.

36.2  This Lease shall be governed by and construed in accordance with the
applicable laws of the state where the Premises are located.  If any provision
of this Lease is capable of two interpretations, one of which would render the
provision void and the other of which would render the provision valid, then the
provision shall have the meaning which shall render it valid.  If any provision
of this Lease, or the application thereof to any person or circumstances shall
to any extent be invalid or unenforceable, the remainder of this Lease or the
application of such provision to persons or circumstances other than those as to
which it is held invalid or unenforceable shall not be affected thereby, and
each provision of this Lease shall be valid and be enforceable to the fullest
extent permitted by law.

37. DELAYS

37.1  If Landlord or Tenant is delayed or prevented from performing any
provision during the Term because of strikes, lockouts, labor troubles,
inability to procure materials, failure of power, governmental restrictions or
reasons of a like nature not the fault of the party delayed, then the period of
delay shall be deemed added to the time of performance and the delayed party
shall not be liable for losses or damages caused by the delay.  After the
Commencement Date, this Article shall not apply to any payments due to Landlord
by Tenant.

                                                                         Page 15
<PAGE>

38. SIGNATURE OF PARTIES

IN WITNESS WHEREOF, the Landlord and Tenant have caused this Lease to be signed
as of the date of signature of the last party to sign.

Signed in the presence of:      LANDLORD: HUNTERS SQUARE INC.

   /s/ DEANNE M. MOORE              By:     /s/ CARTER P. LEWIS
-----------------------------             ------------------------
                                          Carter P. Lewis, Treasurer

   /s/ MICHAEL BAGBY                Date:         3/19/99
-----------------------------             ------------------------
(As to Landlord)

                                TENANT:   STONERIDGE, INC.

   /s/ WILLIAM T. HALL              By:     /s/ DAVID L. THOMAS
-----------------------------             -------------------------
                                             David L. Thomas, Vice President

                                    Date:          3/9/99
                                          ------------------------

      /s/ NANCY TERMINE
-----------------------------------
(As to Tenant)

39. NOTARY

STATE OF OHIO
COUNTY OF TRUMBULL

Personally appeared before me, a Notary Public in and for said County and State,
the above named /s/ CARTER P. LEWIS who acknowledged that HE did sign the
                -------------------                       --
fore-going instrument and that the same is HIS free act and deed.
                                           ---
IN WITNESS WHEREOF, I have hereunto set my hand and official seal at WARREN,
                                                                     -------
OHIO this 19th of MARCH 1999.
----      ----    -----   --

 /s/ DEANNE M. MOORE
---------------------
Notary Public

STATE OF OHIO
COUNTY OF TRUMBULL
Personally appeared before me, the undersigned, a Notary Public in and for said
County and State,

/s/ DAVID L. THOMAS  and ____________________ known to me to be the VICE
-------------------                                                 ----
President and __________________________________  Secretary, respectively,
of STONERIDGE, INC. the corporation which executed the foregoing document,
   ----------------
who acknowledged that they did sign and seal the

                                                                         Page 16
<PAGE>

foregoing document for and on behalf of said corporation, being there-unto duly
authorized by its Board of Directors; that the same is their free act and deed
as such officers and the free act and deed of said corporation.
IN TESTIMONY WHEREOF, I have hereunto set my hand and official seal at WARREN,
                                                                       -------
OHIO this date of MARCH 19, 1999.
----              ---------   --

 /s/ DEANNE M. MOORE
--------------------
Notary Public

STATE OF OHIO
COUNTY OF TRUMBULL

Personally appeared before me, a Notary Public in and for said County and State,
the above named _____________ who acknowledged that _______ did sign the
foregoing instrument and that the same is _______ free act and deed.
IN WITNESS WHEREOF, I have hereunto set my hand and official seal at
__________this ________ day of _________________________19______.

_____________________________________
Notary Public

                                                                         Page 17<PAGE>

                                                                   Exhibit 10.15

                      CAROLINA CENTRAL INDUSTRIAL CENTER
                                     LEASE

        THIS AGREEMENT OF LEASE is made as of this 5th day of February, 1998,
                                                   ---        --------  ----
by and between INDUSTRIAL DEVELOPMENT ASSOCIATES, a Maryland limited
partnership, having a place of business c/o Heritage Properties, Inc. at 515
Fairmount Avenue, Towson, Maryland 21204 ("Landlord"), as landlord, and
STONERIDGE, ALPHABET DIVISION, an Ohio Corporation;
------------------------------    ----

                                   ARTICLE I
                                   ---------

                           Premises and Construction
                           -------------------------

1.1 Premises. The Landlord hereby leases to Tenant, and Tenant hereby leases
    --------
from Landlord, land and improvements constituting a portion of Lot No. 4 as
shown on the Consolidated Map of the Property of Industrial Development
Associates known as the Carolina Industrial Center, Phase 1, by Alley, Williams,
Carmen & King, Inc., Engineers, dated February 11, 1991, and recorded in Plat
Book 43, at page 51, Alamance County N.C. Registry, and also shown on drawing
recorded in Plat Book 31, at page 30, Alamance County Registry, the same being
shown on as 36,427 square feet of space in the building constructed on said lot,
            ------
known as Building No. 4 (the "Building") as shown on plans by Alley, Williams,
                      -
Carmen & King dated 2-19-90, Exhibit "A," duplicate copies of which showing the
boundaries of the demised portion of the building, have been highlighted and
initialled on behalf of each of the parties, with each party retaining one
highlighted and initialled copy each of even date herewith, this building being
known as 1403 S. Third Street Extension, in the City of Mebane, Alamance
         ------------------------------
County, North Carolina. The Landlord may, now or hereafter in its discretion,
cause the portion of the building leased hereunder and that not so leased to be
assigned separate street numbers. Except for Section 7.2 hereof, the phrase
"Tenant's pro rata" share and the like references shall mean 59.71%, which has
                                                             ------
been determined by dividing the total rentable square feet in the Building into
the rentable square feet in the Building leased to Tenant. The rentable square
feet has been determined as the area within dimensions measured from the center
of any interior demising wall to the outside of any exterior wall constituting a
wall of the demised portion of the building.

     1.2 Work to be Performed by Landlord at Landlord's Expense.
         ------------------------------------------------------
Landlord, at its cost and expense, shall perform and complete such work on the
interior of Leased Premises as set forth in the plans and specifications
("Landlord's Plans") attached as Exhibit "B" to this Lease. During the period
Landlord is performing work on the Leased Premises pursuant to this section,
Tenant shall have the right to enter upon the Leased Premises to install its
fixtures, equipment, and other property so long as Tenant does not unreasonably
interfere with Landlord in the performance of Landlord's work.

         Landlord shall notify Tenant in writing as soon as the Leased Premises
are substantially completed in accordance with Plans and ready for Tenant to
take occupancy. Taking of possession by Tenant shall be subject to punch list
items for the Leased Premises specified by the parties at the time Tenant takes
possession and faulty materials or workmanship warranted by the Landlord.
Landlord hereby warrants the

                                       1
<PAGE>

materials and workmanship for the work performed by Landlord for a period of one
year commencing on the date Tenant takes possession of the Leased Premises or,
in the case of any dividing wall(s) erected by the Landlord, commencing on the
date the Landlord completes such dividing wall(s), provided that Tenant gives
Landlord written notice of any defect promptly as it is discovered and within
such one-year period.

     1.3 Work to be Performed by Tenant at its Expense with Landlord's Approval.
         ----------------------------------------------------------------------
Tenant, at its own cost and expense, shall perform and complete such work on the
interior of Leased Premises as set forth on the plans and specifications
("Tenant's Plans") attached as Exhibit "C" to this Lease, which Plans and
Specifications are hereby approved by the Landlord.

                                  ARTICLE II
                                  ----------

                                  Lease Term
                                  ----------

     2.1 Term. The term of this Lease shall begin on March 1, 1998, and shall
         ----                                        -------------
end on March 31, 2001, unless sooner terminated as herein provided, this
       --------------
period being called the "Term."

                                  ARTICLE III
                                  -----------

                                     Rent
                                     ----

     3.1 Annual Rent.  Beginning on the later of March 1, 1998 or the date
         -----------
Landlord completes the work described in Section 1.2 above, Tenant shall pay to
Landlord annual rent in accordance with the following schedule, without demand
or set-off, in legal tender, and in advance on the first day of each and every
month in each year during the Term. The annual rent shall be:

<TABLE>
<CAPTION>
     Period             Area (SF)    Rent/SF     Annual Rent     Monthly Rent
--------------------    ---------    -------     -----------     ------------
<S>                     <C>          <C>         <C>             <C>
3/1/98 - 4/1/98          36,427        Free         Free             Free

4/1/98 - 3/31/99         36,427       $2.85      $103,816.95       $8,651.41

4/1/99 - 3/31/2000       36,427       $2.96      $107,969.63       $8,997.47

4/1/2000 - 3/31/2001     36,427       $3.08      $112,288.41       $9,357.37
</TABLE>

Tenant shall make all rent payments to Landlord, Industrial Development
Associates, c/o Heritage Properties, Inc., 515 Fairmount Avenue, Suite 900,
Towson, Maryland 21286, or at such other address designated by Landlord in a
written notice to Tenant.

     3.2 Impositions. The annual real estate or other taxes and special
         -----------
assessments imposed on or with respect to the land and improvements on the
assessed unit of which Leased Premises are a part, including, without
limitation, front foot or benefit assessments for sewerage, water or paving and
any rent or occupancy tax which may be imposed (collectively the "Impositions")
for any tax year during the term of this lease shall be paid by the Tenant
within thirty (30) days following receipt of a bill therefor from the Landlord
after such tax or assessment is due as part of additional rent for the Leased
Premises. Tenant shall not be obligated to pay any installment of any special
assessment levied or assessed during the Term but not due until after
termination of this Lease. Impositions shall be based on a square foot
proportional basis as to any assessed unit of which the Leased Premises are a
part.

     Unless otherwise required by Landlord, Tenant shall pay its share of
Impositions directly to the Landlord. Upon the request of Tenant, the Landlord
shall deliver copies of Imposition bills and notices to Tenant following their
receipt by Landlord.

                                       2
<PAGE>

     3.3 Utilities. Beginning on January 1, 1998, Tenant shall pay when due, as
         ---------               ---------------
part of additional rent, all charges for gas, electricity, water, sewer,
telephone, and all other utilities used or consumed at the I-eased Premises,
Landlord shall provide that gas, electricity, and water be separately metered
for the Leased Premises. Tenant shall pay all such bills directly to the billing
entity, and, upon request of Landlord, shall forward to Landlord a receipt or
other appropriate evidence that all such bills are paid.

     3.4 Expenses. Unless expressly or otherwise provided in this Lease, Tenant
         --------
shall pay all costs, expeases and obligations of every kind relating to the
Leased Premises which may arise during the term except (a) municipal, state. or
federal incorne taxes or estate, succession, inheritance or gift taxes or
corporation franchise taxes assessed against Landlord: (b) costs, expenses, and
obligations incurred by Landlord in connection with the sale or mortgaging of
the Leased Promises; and (c) costs of maintenance and repairs for which Landlord
is responsible under the terms of the Lease.

     3.5 Security Deposit.      N/A
     ---------------------

     3.6 Rights of First Offer.  N/A
     --------------------------

                                      3
<PAGE>

                                  ARTICLE IV
                                  ----------
                                   Occupancy
                                   ---------
    4.1 Quiet Enjoyment. Upon payment of the rent as required under this Lease
        ---------------
and performance by Tenant of all of the covenants and provisions of this lease
to be performed by Tenant, Tenant shall have during the Lease Term peaceful and
quiet use and possession of the Leased Premises without hindrance on the part of
Landlord or others holding through or under the Landlord.

    4.2 Use of Premises. Tenant may use the Leased Premises only for the
        ---------------
purpose of product research and development, warehousing, distribution, light
manufacturing and office use.

    4.3 Compliance with Law. Tenant shall at all times during the Term, at its
        -------------------
own expense, conform to and comply with all laws, regulations, orders and other
governmental requirements, or requirements of the Board of Fire Underwriters,
now or hereunder in force, affecting Tenant's use or occupancy of all or any
part of the Leased Premises. Landlord represents and warrants to Tenant that on
the date of delivery of the Leased Premises to Tenant, the Leased Premises and
the Building will be in compliance with all laws, ordinances, orders, rules,
regulations of any governmental body having jurisdiction over the use,
condition, and occupancy of the Leased Premises. Landlord has at all times in
the past conducted its activities at the Building and the land and improvements
shown on Consolidated Map of Property of Industrial Development Associates
referred to in Section 1.1. hereof, and shall operate and perform all work of
Landlord for the Building and the lot at which the Building is located, in
accordance with all governmental requirements relating to Environmental Matters.
Landlord shall indemnify Tenant from all claims and liability of any kind caused
by Landlord with respect to any violation of any governmental requirement
regarding construction and operation of the Building or the land and
improvements shown on Consolidated Map of Property of Industrial Development
Associates referred to in Section 1.1 hereof relating to Environmental Matters.
Landlord also agrees to indemnify Tenant from all claims and liabilities of any
kind with respect to any violation of any governmental requirements relating to
Environmental Matters by any prior owner of lessee of the land and improvements
shown on the Consolidated Map of Property of Industrial Development Associates
refereed to in Section 1.1 hereof, if such violation occurred prior to the date
hereof and is known to Landlord.

    Tenant shall operate and maintain the Leased Premises in accordance with all
governmental requirements relating to Environmental Matters. Tenant shall
indemnify Landlord from all claims and liability of any kind caused by Tenant
with respect to any violation of any governmental requirement regarding
occupancy and operation of the Leased Premises relating to Environmental
Matters.

    "Environmental Matters" shall mean all governmental requirements governing
the discharge, release, emission, or disposal of any hazardous substance, and
prescribing methods for or other limitations on sorting, handling, or otherwise
managing hazardous substances including, but not limited to, the then current
versions of the following federal statutes, their state analogs, and the
regulations implementing them: the Resource Conservation and Recovery Act (42
U.S.C. SS6901, et.seq.); the Comprehensive Environmental Response, Compensation
and Liability Act (42 U.S.C. SS9601, et.seq.); the Clean Water Act (33 U.S.C.
SS1251, et.seq.); the Clean Air Act (42 U.S.C. SS7401, et.seq.) and the Toxic
substances Control Act (15 U.S.C. SS2601, et.seq.).

                                       4
<PAGE>

     4.4. Restrictive Covenants. At all times during the Term, Tenant shall
          ----------------------
comply with, perform, and be bound by, all the terms, provisions, conditions,
restrictions, and covenants imposed on "Occupants/Tenants" set forth in the
covenants with respect to the Leased Premises as set forth on attached Exhibit
"D" entitled "Restrictive Covenants." The Landlord, having caused the Building
and other improvements on the Leased Premises to be constructed, acknowledges
that the Leased Premises comply with the said Restrictive Covenants and that the
Tenant's intended use of the Leased Premises (product research and development,
warehousing, distribution, light manufacturing and office use) is not a
violation thereof.

                                   ARTICLE V
                                   ---------
                                   Transfers
                                   ---------

     5.1 Assigning and Subletting. Tenant shall not have the right to sublet the
         -------------------------
Leased Premises, or any portion thereof, or to assign Tenant's interest in this
Lease, or any portion thereof, without the prior consent of Landlord, which
consent shall not be unreasonably withheld or delayed. For purposes of this
Section 5.1, consent shall be considered unreasonably withheld when Landlord
rejects a proposed sublessee whose intended use of the Leased Premises is not
inconsistent with a use described in Section 4.2 and who is financially
responsible in terms of being able to pay its debts when they become due in the
usual course of business. For purposes of this Section 5.1, consent shall be
considered unreasonably delayed when Landlord does not respond to Tenant's
proposed assignment or sublease within ten (10) days, if Tenant so specifies
that required response time in Tenant's inquiry notice. Subletting or assignment
shall not relieve Tenant of its obligations to Landlord under this Lease. In the
event that the amount of the rent to be paid to the Tenant by any assignee or
sublessee is greater than the rent required to be paid by the Tenant to the
Landlord pursuant to this Lease, Tenant shall pay to Landlord any such excess as
is received by Tenant from such assignee or sublessee. Tenant shall not have
the right to sublet the Leased Premises at a rental rate less than the rate
stated in this Lease.

     5.2 Assignments to Tenant's Lenders. Notwithstanding the foregoing
     ------------------------------------
provisions of Section 5.1, Landlord acknowledges that Tenant shall be
permitted, without Landlord's consent, to assign its interest in the Lease and
the Leased Premises in favor of a national banking association as collateral in
connection with funds loaned to Tenant for Tenant's work and/or establishment
and operation of its business in the Leased Premises.

                                  ARTICLE VI
                                  ----------

                                    Parking
                                    -------

     6.1 Parking. Subject to the rules, regulations, and conditions set forth on
         ---------
Exhibit D, Rider #3, Tenant shall be entitled to the use of automobile parking
areas, driveways, access roads, footways, and loading facilities as shown on
the site plan attached as Exhibit "E".

                                       5
<PAGE>

                                    ARTICLE VII
                                    -----------

                             Maintenance and Alterations
                             ---------------------------

     7.1 Maintenance and Repair. Tenant at its sole cost and expense, and
         -----------------------
except as provided below, shall perform all maintenance of an ordinary and
recurring nature necessary to maintain and keep in an orderly condition and in
a good state of repair the interior of the Leased Premises from ceiling to
floor, including, but not by way of limitation, all non-capital repairs to
interior walls, windows, plumbing and sewerage facilities, air-conditioning
system, heating system, electrical facility and equipment, exterior lighting on
the building, and all other fixtures, equipment and appliances of every nature
between the ceiling and the floor on the interior of the Building, reasonable
use and wear and fire and other casualty excepted. Landlord shall assign to
Tenant during the Term all warranties applicable to the heating, ventilating and
air-conditioning systems and equipment serving the Leased Premises to the extent
of the Tenant's interest therein during the Term. The cost of maintenance and
repairs shall include all costs allocable to such maintenance and repair in
accordance with generally accepted accounting principals and the terms hereof.
Landlord shall maintain in good and presentable repair and condition the roof,
structural parts of the Building, and all parts of the Building not to be
maintained by Tenant as provided above, and cause to be maintained the Common
Areas of the Industrial Center of which the Leased Premises are a part as
referred to in Section 7.2 of this Lease. Tenant may repair and credit upon rent
any repairs to the Leased Premises which are a responsibility of the Landlord
which have not been made within thirty (30) days after written notice by the
Tenant to the Landlord calling attention to the need for such repairs, or within
twenty-four (24) hours after actual notice to the Landlord by the Tenant in the
event of an emergency. Except as expressly provided in this Lease, Landlord
shall not be called upon or obligated to make or pay any repairs, replacements,
restorations, improvements, alterations or additions whatsoever in or about the
Leased Premises.

     7.2 Common Area Maintenance. For the purpose of this Lease and in
         ------------------------
particular of this Section thereof, the term "common area maintenance" shall be
deemed to refer to that maintenance which may be provided by the Landlord, to
Carolina Central Industrial Center under the terms of the recorded Restrictive
Covenants referred to in Section 4.4 hereof and, in particular as set forth in
paragraph 26 of said recorded Restrictive Covenants, as well a such maintenance
rights of enforcement and powers as may be assigned by the Landlord herein
(referred to in the said restrictive Covenants as the "Declarant") to an entity
formed pursuant to paragraph 27 by a majority of the Lots covered thereby, it
being understood that the term "common area" as herein used does not imply that
there is real property owned within said Carolina Central Industrial Center as a
common area.

     During the free rent period, and for each year during the Term and all
renewal periods, Tenant shall pay monthly as additional rent upon receipt of a
bill therefor from Landlord, a common area maintenance charge representing
Tenant's proportionate share of the cost to Landlord of operating, maintaining,
repairing and replacing the roads and parking areas, street lighting and
exterior grounds in and around Carolina Central Industrial Center of which the
Leased Premises are a part. Such charge shall be for repair of the parking areas
and for keeping them clear of snow, debris and other rubbish, and for
maintenance of all exterior grounds, grass, landscaping and related areas.
Tenant's proportionate share shall be the amount determined by multiplying
the total annual expense to the Landlord for so maintaining the parking areas
and exterior grounds by a fraction, the numerator of which is 36,427
                                                              ------
representing the number of square feet of

                                       6
<PAGE>

floor area of the Leased Premises, and the denominator of which shall be the
floor area of the other buildings in the Industrial Park (i.e., 239,569 square
                                                                -------
feet) of which the Leased Premises are a part. Tenant's proportionate share of
the common area charges presently is 15.21%.
                                     ------

     7.3 Alterations by Tenant. Tenant, without the prior written consent
         ----------------------
of Landlord, which consent shall not be unreasonably withheld or delayed after
submission of plans for such, shall not make any interior alterations,
structural alterations, changes to the exterior appearance of the Leased
Premises, additions or other improvements to the Leased Premises, except for
maintenance and repair required of Tenant.

                                 ARTICLE VIII
                                 ------------

                         Surrender of Leased Premises
                         ----------------------------

      8.1 Surrender. Upon the end of the Term or any earlier termination of
          ----------
this Lease, Tenant shall surrender to Landlord the Leased Premises, including
(except as otherwise provided in Section 8.2 below) all alterations,
improvements and other additions, in good order and repair, reasonable wear and
tear and damage by fire or other casualty excepted.

     8.2 Tenant Equipment Excepted. Tenant shall be entitled to (or, at
         --------------------------
Landlord's request, must) remove from the Leased Premises Tenant's office, trade
and manufacturing fixtures, furniture, equipment and signs which Tenant has
installed on the Leased Premises prior to or during the Term at the cost of
Tenant and which are not an integral part or necessary to the operation of the
Leased Premises as are plumbing, heating ventilation, air-conditioning, and
other similar equipment. Tenant shall at its own cost and expense repair any and
all damage to the Leased Premises resulting from or caused by such removal, and
shall restore the Leased Premises to good order and condition, reasonable wear
and tear excepted. Tenant shall have thirty (30) days after termination of this
Lease as provided herein to effect such removal, repair and restoration.

                                  ARTICLE IX
                                  ----------

                               Mechanic's Liens
                               ----------------

     9.1 Mechanic's Liens. Prior to approving any construction on the Leased
         -----------------
Premises by Tenant, Landlord shall have the right to require Tenant, or Tenant's
contractor for such construction, to furnish a bond in an amount equal to the
estimated cost of such construction with corporate surety approved by Landlord
for (a) completion of such construction and (b) indemnifying Landlord and
Tenant, as their interests may appear, against liens for labor and materials,
which bond shall be furnished before any work is begun or any materials
delivered. Landlord shall also have the right at any time before, during or
after such construction to require Tenant to furnish such other assurances
against mechanics' liens as may be reasonable including, but not limited to,
releases of liens signed by all contractors, subcontractors, and suppliers, and
affidavits executed by Tenant and by Tenant's contractor or architect that all
labor and material theretofore furnished have been paid in full and provide a
bond in order to obtain release of any lien filed against the Building.

                                       7
<PAGE>

                                 ARTICLE X
                                 ---------

                          Insurance and Indemnity
                          -----------------------

     10.1 Casualty Insurance. Beginning on the commencement of the Term hereof
          -------------------
of this Lease and continuing during the entire Term, Landlord, at its expense,
shall keep the Building on the Leased Premises insured against loss or damage by
fire, vandalism and other casualty to the extent now or hereafter covered under
standard extended coverage. Such insurance shall be in the amount of the full
replacement value of the Building (including leasehold improvements) as the same
may increase from time to time. Landlord shall furnish Tenant with a copy of
such policy or with a certificate of the insurer that the same is in effect. The
Tenant shall pay Landlord as additional rent upon receipt of a bill therefor
from Landlord the annual premium for such insurance coverage. Such payment by
Tenant shall be based on a square foot proportional basis as to the total area
of any building of which the Leased Premises are a part.

     Tenant shall at all times during the Term maintain at its own cost and
expense such casualty insurance against loss, damage, or destruction to all
signs, trade fixtures, improvements, equipment, furniture and other
installations and property installed by Tenant on the Leased Premises, and
shall, upon Landlord's request, provide Landlord with certificates of insurance
evidencing that such policies are in force or copies of such policies.

     Both Landlord and Tenant hereby agree to procure and maintain such property
and business interruption insurance as they deem appropriate for protecting
their respective interests.

     10.2 Indemnity. At all times after Tenant takes possession of the Leased
          ----------
Premises and for any period that Tenant enters the Leased Premises prior to the
Commencement Date to make its installations, Tenant shall protect, indemnify,
and save the Landlord harmless of, from and against any and all liabilities,
damages, costs expenses, fees, demands, or claims of any nature whatsoever
arising from (a) any work or thing done in or about the Leased Premises, and the
improvements now or hereafter constructed thereon, or any part thereof, by
Tenant or its agents or employees or independent contractors hired by Tenant,
(b) injury to or death of persons or damage to property on the Leased Premises
or the improvements now or hereafter constructed thereon, and (c) any negligent
act or omission on the part of the Tenant, or its employees or invitees or
independent contractors arising out of the occupancy or use of the Leased
Premises and the improvements now or hereafter constructed thereon, except that
Tenant shall not be required to save and hold Landlord harmless or to indemnify
Landlord if the injury or loss is due to a willful or negligent act or omission
of the Landlord or its agents or employees.

     10.3 Public Liability Insurance. During all periods of construction or
          ---------------------------
reconstruction work performed by Tenant on the Leased Premises, Tenant, at its
own expense, shall keep in force, by advance payments of premiums, workmen's
compensation and builder's risk insurance reasonably acceptable to Landlord.

     Beginning on the date of commencement of Tenant's entry upon the Leased
Premises and continuing during the entire Term, Tenant, at Tenant's expense,
shall keep in force, by advance payments of premiums, public liability insurance
in an amount of not less than Two Million Dollars ($2,000,000.00), this being a
single limit policy for one or more claims thereunder because of any one
occurrence for personal injury or death and for damage to property, insuring
against any liability that may accrue on account of any

                                       8
<PAGE>

occurrences in or about the Leased Premises or in consequence of Tenant's
occupancy of the Leased Premises. Such insurance shall protect and indemnify not
only against any and all such liability, but also against all loss, expense and
damage of any and every sort and kind, including costs of investigation and
attorney's fees and other costs of defense. All such insurance shall be with
insurers approved by Landlord (which approval shall not be unreasonably withheld
or delayed), and all policies shall name Landlord and Tenant as beneficiaries
as their respective interests may appear. All policies required pursuant to
Article X shall provide that, notwithstanding any act or negligence of Tenant
which might otherwise result in a forfeiture, such policies shall not be
canceled without at least ten (10) days' prior written notice to each insured.
Tenant shall furnish Landlord with a copy of all such polices or a certificate
that such policies are in effect.

     10.4 Waiver of Subrogation. Landlord and Tenant each waive and release
          ----------------------
any and all rights to recover against the other or against the officers,
directors, shareholders, partners, employees or agents of the other party for
any loss or damage to such waiving party arising from any cause covered by any
insurance required to be carried by such party pursuant to this article or by
any other insurance actually carried by such party to the extent that such loss
or damage is covered by valid and collectable insurance in effect at the time of
such loss or damage. Landlord and Tenant shall each have included in all
policies or fire, extended coverage, business interruption and other casualty
insurance respectively obtained by them covering the Leased Premises, the
Building and contents therein, a waiver by the insurer of all rights of
subrogation or otherwise against the other party hereto in connection with any
loss or damage thereby insured against. Any additional premium for such waiver
shall be paid by the primary insured.

                                  ARTICLE XI
                                  ----------

                                Eminent Domain
                                --------------

     11.1 Total Taking. If the entire Leased Premises be taken under the power
          -------------
of eminent domain or purchased by a governmental entity in lieu thereof (herein
together called "Eminent Domain"), this Lease shall terminate as of the date
possession is taken.

     11.2 Partial Taking. If any portion of the Leased Premises shall be taken
          ---------------
under the power of Eminent Domain, and the portion not so taken would not, in
the reasonable judgment of Tenant, be adequate for the continued operation of
Tenant's business, either unrestored or restored, notice of which judgment shall
be communicated in writing to Landlord stating the reasons therefor within sixty
(60) days following the date on which Tenant receives notice of the condemning
authority's intention to take such property as hereinafter set forth, or if
Landlord deems such restoration to be impractical, this Lease shall be deemed
to have terminated as of the date of the taking of possession by the condemnor.
If this Lease is not terminated pursuant to this Section 11.2, Landlord,
immediately following the taking, to the extent of condemnation proceeds made
available to Landlord, shall proceed to restore such part of the Leased Premises
as is not taken to or near the former condition of the original Leased Premises,
less all signs, trade fixtures, improvements, furniture, and other installations
and property installed by Tenant, as the circumstances will permit. During the
period of such restoration and thereafter rent shall be abated in a just and
proportionate amount.

                                       9
<PAGE>

     11.3 Damages. All damages awarded for any such taking under the power of
          --------
Eminent Domain shall be paid to the Landlord, except for damages awarded for
Tenant's fixtures and equipment used in operation of the Leased Premises and its
reasonable relocation expenses.

     11.4 Rent. If this Lease is terminated as provided in this Article XI, all
          -----
rent shall be paid up to the date that possession is taken by the condemning
authority, and Landlord shall make a proportional refund to Tenant of any rent
or other amounts paid by Tenant which are applicable to any period after that
date and not yet earned.

                                  ARTICLE XII
                                  -----------

                            Damage and Destruction
                            ----------------------

      12.1 Restoration of Damaged or Destroyed Leased Premises. In the event
           ----------------------------------------------------
that the Building on the Leased Premises shall be damaged by fire or other
casualty covered by extended coverage insurance during the term of this Lease,
the Tenant shall give immediate notice thereof in writing to the Landlord. If
the Building is not damaged to such an extent as to render it practicably
untenable rental payments shall proportionately abate during such interruption
of its use as may be caused by such casualty. In the event of such casualty the
Landlord shall, upon such notice thereof, proceed to cause such damages to be
repaired, and such repairs shall be pursued with due and reasonable diligence
and be completed within a reasonable time, subject to any delays resulting from
any force majeure.
    -------------

     If the damage to the Building by such casualty shall render it practicably
untenable, rental payments shall abate from the date of the casualty damage
until such time as the Building shall have been rendered tenable, and Landlord
shall promptly cause an evaluation of such damage to be made and, within thirty
days of its receipt of notice of such casualty, shall determine if it: (a) is
unwilling to proceed to restore said premises, in which case it will give
written notice of such determination within such thirty day period to the
Tenant, and the Lease shall thereupon be terminated and rental payments
thereunder shall cease (or be refunded) as of the date of the casualty; or (b)
is willing to proceed to restore same, which notice shall be given to the Tenant
in writing within such thirty day period and shall contain an estimate of the
time required to render the Building tenable once more. If the estimated time
required for completion shall exceed sixty (60) days from the time of
commencement thereof, or if less than six months remain in the Term of the Lease
as of the date of the casualty, with rental and other payments hereunder to
cease or be refunded as of the date of the casualty, the Tenant shall have the
option to terminate the Lease as of the date of the casualty, such option to be
exercised or affirmatively waived in writing within 15 days after Tenant's
receipt of notice of the estimated time required to render the Building
tenantable, with restoration to commence within ten days of receipt by the
Landlord of written notice by the Tenant of its election hereunder. Should
restoration of the Building be commenced pursuant to (b) of this paragraph, the
Landlord shall cause such repairs to be pursued with due and reasonable
diligence and to be completed within the estimated time, subject to any delays
resulting from any force majeure.
                   -------------

                                      10
<PAGE>

                                 ARTICLE XIII
                                 ------------

                               Default by Tenant
                               -----------------

     13.1 Tenant's Default. If Tenant (a) shall fail to pay any rent or other
          -----------------
sum of money due hereunder within ten (10) days after receipt or receipt of
refusal by the Landlord of notice of such failure or if Tenant shall fail to pay
any rent or other sum of money due hereunder within five days after the same
shall be due (provided however that the Landlord agrees to give written notice
to Tenant of any such failure of payment and such failure will not constitute an
event of default unless Tenant fails to make such payment on or before the tenth
day from and after receipt or refusal of such notice, and provided further that
such notice and grace period shall be required to be provided by the Landlord
and shall be accorded the Tenant, if necessary, only twice during any
consecutive twelve month period of the term, with an event of default to be
deemed to have immediately occurred upon the third failure to make a timely
payment as aforesaid within any consecutive twelve month period of the term) or
(b) shall fail to perform any other terms, conditions, or covenants of this
Lease to be observed or performed by Tenant for more than thirty (30) days after
written notice of such default shall have been mailed to Tenant, unless such
default is of a nature that it cannot practically be cured within such thirty
(30) day period and Tenant is proceeding with due diligence to cure stich
default, or (c) shall abandon the Leased Premises, then at Landlord's option and
without limiting Landlord in the exercise of any other right or remedy Landlord
may have in law or equity on account of such default, and without any further
demand or notice, Landlord may

          (i) Re-enter the Leased Premises take possession of all Improvements,
     additions, alterations, equipment and fixtures thereon, eject all parties
     in possession thereof therefrom, and, without terminating this Lease, at
     any time and from time to time relet the Leased Premises or any part or
     parts thereof for the account of Tenant or otherwise, receive and collect
     the rents therefor, applying the rents first to the payment of such
     reasonable expenses as Landlord may have paid, assumed or incurred in
     recovering possession of the Leased Premises, including costs, expenses and
     reasonable attorney's fees, and for placing the Leased Premises in good
     order and condition or preparing or altering the same for reletting and all
     other expenses, commissions and charges paid, assumed or incurred by
     Landlord in or in connection with reletting the Leased Premises, and then
     to the fulfillment of the covenants of Tenant. Any such reletting may be
     for the remainder of the Term of this Lease or for a longer or shorter
     period. Landlord may execute any lease made pursuant to the terms hereof
     either in Landlord's name or in the name of Tenant, as Landlord may see
     fit, and the subtenant therein shall be under no obligation whatsoever for
     the application by Landlord of any rent collected by Landlord from such
     subtenant to any and all sums, due and owing or which may become due and
     owing under the provisions of this Lease. Tenant shall not have any right
     or authority to collect any rent from subtenant. In any case and whether or
     not the Leased Premises or any part thereof be relet, Tenant shall pay to
     Landlord all sums required to be paid by Tenant up to the time of re-entry
     by Landlord. Thereafter Tenant, if required by Landlord, shall pay to
     Landlord until the end of the Term of this Lease the equivalent of the
     amount of all rent and other charges required to be paid by Tenant under
     the terms of this Lease, less the proceeds of such reletting during the
     Term of this Lease, if any, after payment of the expenses of Landlord. Such
     rent shall be due and

                                      11
<PAGE>

     payable on the several rent days herein specified, and Landlord need
     not wait until the termination of this Lease to recover any rent by legal
     action or otherwise. Re-entry by Landlord shall not constitute an election
     to terminate this Lease unless Landlord gives Tenant notice of Landlord's
     election to terminate.

          (ii) Declare this Lease at an end, re-enter the Leased Premises eject
    all parties in possession thereof therefrom and repossess and enjoy the
    Leased Premises together with all Improvements thereto, and Landlord shall
    thereupon be entitled to recover from Tenant any rent due from Tenant to
    Landlord as of the date of such re-entry and, subject to the Landlord's duty
    to mitigate damages, the amount of rent and charges equivalent to rent
    reserved in this Lease for the balance of the Term. For the purpose of this
    subparagraph (ii) all Impositions and contributions to expenses and other
    items paid by Tenant shall be projected over the term of the Lease at an
    average increase of such items as may have occurred since the date of this
    Lease to the date of default.

     13.2 Remedies Not Exclusive; No Waiver. The remedies of Landlord set forth
          ----------------------------------
in this Lease are cumulative and are in addition to and not exclusive of any
other remedy of Landlord herein given or which may be permitted by law, and if
any breach or threatened breach by Tenant of this Lease occurs, Landlord shall
be entitled to enjoin such breach or threatened breach and shall have the right
to invoke any right and remedy allowed by law or in equity or by statute or
otherwise in addition to rights set forth in this Lease. Tenant shall permit any
re-entry as provided for in this Article without hindrance to Landlord, and
Landlord shall not be liable in damages or guilty of trespass because of such
re-entry. The failure of Landlord to insist, in any one or more instances, upon
a strict performance of any of the covenants of this Lease or to exercise any
option contained herein, shall not be construed as a waiver or a relinquishment
for the future as to such covenant or option. A receipt by Landlord of rent with
knowledge of the breach of any covenants of this Lease shall not be deemed a
waiver of such breach. No waiver by Landlord of any provision of this Lease
shall be deemed to have been made unless expressed in writing and signed by
Landlord.

     13.3 Cure by Landlord. Section Intentionally deleted.
          -----------------

     13.4 Cure by Tenant. Section Intentionally deleted.
          ---------------

                                  ARTICLE XIV
                                  -----------

                                  Bankruptcy
                                  ----------
     14.1 Effect of Bankruptcy or Other Proceedings. If at any time any
          ------------------------------------------
bankruptcy or any reorganization proceeding is instituted by or against Tenant
either in the State or Federal Courts, or if a receiver is appointed under the
Bankruptcy Act, for its business or property on or in the Leased Premises, or if
the Tenant should suffer the taking of this lease by execution or by foreclosure
of any lien against its leasehold interest, or if Tenant shall make an
assignment for the benefit of creditors or voluntarily or involuntarily take
advantage of any debtor relief proceedings under present or future law,
Landlord, in addition to any other remedies provided it in the event of Tenant's
default as set forth in this Lease or under any applicable law, shall have the
option, to be exercised by written notice given to Tenant, to declare this

                                      12
<PAGE>

Lease terminated at any time after the expiration of twenty (20) days following
the commencement of such proceeding or the execution or attempted execution or
foreclosure or attempted foreclosure upon its leasehold interest, unless the
proceeding is dismissed or the judgment or lien pursuant to which execution or
foreclosure was made or attempted is paid and unless all payments of rent and
other payments required by this Lease to be made by Tenant to Landlord are paid
promptly during such period of twenty (20) days. Landlord shall under no
circumstances be required to permit a receiver or any person claiming through or
under Tenant to retain possession of the Leased Premises. Landlord need not
lease the Leased Premises to such receiver or person, and Landlord shall be
entitled to immediate possession of the Leased Premises. Any repossession or
termination hereunder shall not operate in any way to prejudice or affect the
right of Landlord for recovery of rent or other charges theretofore accrued,
thereafter accruing or any damages, nor shall any such termination or
repossession ever be construed as a waiver of or an election not to claim future
damages on account of such breach, but all such damages including all future
rentals shall be fully recoverable by the Landlord.

                                  ARTICLE XV
                                  ----------

                                 Miscellaneous
                                 -------------

     15.1 Recording. Tenant shall not record this lease without the written
          ----------
consent of the Landlord, however upon the request of either party the other
shall join in the execution of a memorandum or "short form" lease for the
purpose of recordation, describing the parties, premises, and the term hereof
and incorporating this lease by reference therein.

     15.2 Subordination, Non-disturbance and Attornment Agreement. This Lease
          --------------------------------------------------------
shall be subject to and subordinate at all times to the lien of any mortgages or
deeds of trust now or hereafter made by the Landlord on the Leased Premises, and
to all advances made or hereafter to be made thereunder. Although this
subordination provision shall be self-operative and no further instrument of
subordination shall be required, Tenant will, nevertheless, upon request of the
Landlord, enter into a subordination, non disturbance and attornment agreement
with reference to any present or future lender whose loan is secured by a deed
of trust secured in whole or in part upon all or a portion of the Leased
Premises, providing in terms reasonably and customarily required by said lender
and deemed appropriate by its legal counsel for such purposes, for the
subordination of this lease to said deed of trust and any modifications or
extensions thereof, with the Tenant's use, possession or enjoyment of the
premises hereunder to be assured so long as there is no default hereunder, with
the Tenant agreeing to attorn to any transfer of the Landlord's title in said
premises by reason of foreclosure or other proceedings instituted in connection
with the deed of trust, including the Lender if it be the purchaser.

     15.3 Estoppel Certificates. Each party agrees at reasonable intervals and
          ----------------------
from time to time upon not less than ten (10) days' prior written notice by the
other to execute, acknowledge and deliver a statement in writing certifying (i)
that this Lease is unmodified and in full force and effect (or if there have
been modifications, that the Lease is in full force and effect as modified and
stating the modifications), (ii) the dates to which the rent and other charges
have been paid in advance, if any, and (iii) stating whether or not to the best
knowledge of the signer of such certificate the signing party is in default in
performance of any covenant, agreement or condition contained in this Lease and,
if so, specifying each such default of which the signer may have knowledge. Each
party acknowledges that any such statement delivered under this Lease may be
relied upon by third parties not a party to this Lease.

                                      13
<PAGE>

     15.4 Right to Enter. Landlord and its agents shall have the right to enter
          ---------------
the Leased Premises at reasonable hours upon twenty-four hours notice to Tenant,
and at any time without notice if any emergency exists, to examine the Leased
Premises, or to make such repairs and alterations as shall be reasonably
necessary for the safety and preservation of the Leased Premises, or during the
last three (3) months of the Term to show both the interior and exterior of the
Leased Premises to prospective tenants or purchasers and to place "For Rent" or
"For Sale" signs thereon.

     15.5 Laws of North Carolina. This Lease shall be construed and applied in
          -----------------------
accordance with the laws of the State of North Carolina.

     15.6 Severability. Any provision or provisions of this Lease which shall
          -------------
prove to be invalid, void, or illegal shall in no way affect or impair or
invalidate any other provisions, and the remaining provisions shall remain in
full force and effect.

     15.7 Headings. The headings of the various Articles and Sections of this
          ---------
Lease are inserted for reference only and shall not to any extent have the
effect of modifying, amending or changing the express terms and provisions of
this Lease.

     15.8 Notices. Any notice or other communication required or permitted
          --------
hereunder shall be in writing and shall be delivered personally, telegraphed,
telexed, sent by facsimile transmission or sent by certified, registered or
express mail, or by overnight courier, postage or other charges prepaid. Any
such notice shall be deemed given when so delivered personally, telegraphed,
telexed or sent by facsimile transmission or, if mailed, seven (7) days after
the date of deposit in the United States mail, or, if sent by overnight courier,
the day after delivery to the overnight courier, at the addresses set forth in
the first paragraph of this Lease or so mailed or delivered to the Tenant or a
responsible employee thereof at the address at the address of the Leased
Premises, with a copy sent as follows if to the Tenant:

                          Ms. Janet Minnis
                          Alphabet, Inc. - MCR Division
                          1400 Dogwood Way
                          Mebane, NC 27302

Any party may, by notice given in accordance with this Section to the other
party, designated other addresses or persons for receipt of notices hereunder.

                                      14
<PAGE>

     15.9    Force Majeure. In no event shall Landlord be liable for, nor shall
             --------------
Tenant have the right to terminate this Lease for delays in the prosecution of
Landlord's share of construction beyond Landlord's control ("Force Majeure"),
                                                            ---------------
including (but not limited to) delays caused directly or indirectly by strikes,
lockouts, the unavailability of labor or materials, Acts of God, acts of any
Federal, State, or Local governmental agency or authority, war, insurrection,
rebellion, riot, civil disorder, fire, explosion, windstorm, hail, snow, extreme
cold, rain, flood, damage from aircraft, vehicles, or smoke, or by any other
casualty of a substantial enough nature to cause delay.

     15.10 Successors. This Lease shall be binding upon and insure to the
           -----------
benefit, as the case may require, of the parties hereto and their respective
heirs, executors, administrators, successors and assigns.

     15.11 Subordination. This Lease shall be subject to and subordinate at all
           --------------
times to the Restrictive Covenants covering Carolina Central Industrial Center
recorded in Book 716 at page 613, Alamance County Registry, which are attached
hereto, and the Tenant agrees that it will not by any act or omission on its
part, cause the same to be violated as more particularly set forth in Section
4.4. hereof.

     This Lease shall be further subject to and subordinate at all times to the
lien of any mortgage, mortgages or deeds of trust now or hereafter made by
Landlord on the Leased Premises and to all advances made or hereafter to be made
thereunder. This subordination provision is self-operative and shall be
applicable during the period prior to the execution of the agreement provided
for by paragraph 15.2, and shall further be operative and applicable if the
agreement referred to in paragraph 15.2 is for any reason never executed, the
Landlord agreeing that it will make all reasonable efforts to procure the
execution of that agreement so referred to in Section 15.2. In addition to the
foregoing provisions and notwithstanding any non-execution of the agreement
provided for in paragraph 15.2, the Tenant will, during the continuance of its
occupancy hereunder, nevertheless execute and deliver such further instruments
confirming such subordination or status of this Lease as may be required by the
Landlord for financing or refinancing the Leased Premises.

     15.12 Assignment of Landlord's Interest. If Landlord should ever assign
           ----------------------------------
this Lease or the rents hereunder to a creditor as security for a debt, Tenant
shall, after notice of such assignment and upon demand by Landlord or the
assignee, pay all sums thereafter becoming due Landlord hereunder to the
assignee and give all notices required to be given Landlord hereunder both to
Landlord and the assignee.

     15.13 Transfer by Landlord. If Landlord sells, leases or in any manner
           ---------------------
transfers title to the Leased Premises, including foreclosure sale by judicial
proceeding or otherwise, the Landlord shall be relieved of all covenants and
obligations arising hereunder, provided the Landlord is not then in default
hereunder and that such transferee shall agree to assume all covenants and
obligations of the Landlord hereunder. Tenant agrees that it will attorn to such
transferee, provided such transferee has assumed Landlord's covenants and
obligations hereunder, and Tenant shall continue to perform all of the terms,
covenants, and conditions and obligations of this Lease.

                                      15
<PAGE>

     15.14 Limitation of Execution against Landlord. If Tenant obtains a money
           -----------------------------------------
judgment against Landlord, any of its partners or its successors or assigns
under any provision of, or with respect to this Lease or on account of any
matter, condition or circumstance arising out of the relationship of the parties
under this Lease, or of Tenant's occupancy of the Property, Tenant shall be
entitled to have execution upon such judgment only upon Landlord's estate in the
Leased Premises, and not out of any other assets of Landlord, any of its
partners, or its successors or assigns; and Landlord shall be entitled to have
any such judgment so qualified as to constitute a lien only on the fee simple
estate subject to any liens antedating any such judgment except that this
limitation shall not apply to the extent that any such judgment against Landlord
is covered by insurance. Nothwithstanding the foregoing, in the event Tenant
obtains a money judgment against Landlord, any of its partners, successors or
assigns by reason of any breach of Landlord's representation regarding
Environmental Matters in Section 4.3 hereof or the indemnification obligations
of Landlord contained therein, Tenant shall be entitled to satisfy such judgment
and recover from the party or parties against which the judgment is entered up
to the greater of (i) the value of Landlord's estate in the Leased Premises, or
(ii) $100,000.

     15.15 Time of Essence. Time is of the essence in this Lease.
           ----------------

IN WITNESS WHEREOF, the parties have executed two identical counterpart
originals of this instrument, the Landlord retaining one thereof, and the Tenant
retaining the other, the day and year first above written.

WITNESS:                       LANDLORD: Industrial Development Associates

                               By: /s/ David G. Rhodes, Pres.
-----------------------            ---------------------------
                                   Heritage Properties, Inc.
                                   Authorized Agent

WITNESS:                       TENANT: Stoneridge, Alphabet Division

/s/ Nancy A. Termine           By: /s/ David L. Thomas
-----------------------            ---------------------------

                                      16
<PAGE>

STATE OF MARYLAND
COUNTY OF Baltimore
          ---------

     I, Pamela S. Rurka, a Notary Public of said County and State, do hereby
certify that David G. Rhodes personally came before me this day and acknowledged
             ---------------
that he is the President of Heritage Properties, Inc., agent for Industrial
               ---------    -------------------------  ---------
Development Associates, a Maryland limited partnership, and that, by authority
duly given and as the act of said corporation as agent for said limited
partnership acting in its behalf, the foregoing instrument was signed in the n e
of Heritage Properties, Inc., as agent by its president. Witness my hand and
official seal this 5th day of February, 1998.
                   ---        --------------

                                    /s/ Pamela S. Rurka

                                    Notary Public

My Commission Expires: 8/1/98

STATE OF
         ---------------
COUNTY OF
         ---------------
           I,          , a Notary Public of said County, do hereby certify that
             ----------
             personally came before me, this day and acknowledged that he is
------------
manager of Stoneridge, Alphabet Division, the company, and that, by authority
           -----------------------------
duly given and as the act of said company the foregoing instrument was signed in
the name of Stoneridge, Alphabet Division, by a manager. Witness my hand and
            -----------------------------
official seal, this     day of         ,     .
                    ---        --------  ----

                                    Notary Public

My Commission Expires:

                                      17
<PAGE>

                            Schedule of Exhibits to
                Lease between Industrial Development Associates
                                      and
                         Stoneridge, Alphabet Division

Exhibit A Description of Leased Premises
        B Landlord's Plans
        C Tenant's Plans
        D Restrictive Covenants
        H Site Plan
        F Rider

                                      18

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