Document:

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                                                                   EXHIBIT 10.14

                                COMMERCIAL LEASE

     THIS LEASE is made effective the 11th day of March, 1998, between ZASER &
LONGSTON, INC., a Washington corporation ("Landlord") and PRIMEX AEROSPACE
COMPANY, a Washington corporation ("Tenant").

     1.   Basic Lease Provisions.
          ----------------------

          DATE:                    March 11, 1998
          LANDLORD:                ZASE & LONGSTON, INC.
          ADDRESS OF LANDLORD:     1802 136TH PLACE N.E.
                                   BELLEVUE, WA 98005

          TENANT:                  PRIMEX AEROSPACE COMPANY

          ADDRESS OF TENANT:       11441 WILLOWS ROAD N.E.
                                   P.O. BOX 97009
                                   REDMOND, WA 98073-9709

          LEASED PREMISES:         Approximately 70 acres of land and the
                                   buildings and structures located thereon

          LEASE TERM:              Ten (10) Lease Years

          COMMENCEMENT DATE:       July 1, 1998

          TERMINATION DATE:        June 30, 2008

          BASIC MONTHLY RENT:      As set forth in Article 5 below.

          PERMITTED USES:          Research and manufacture of aerospace and
                                   defense related products, including but not
                                   limited to propellants, with associated
                                   testing, engineering and management
                                   activities.

     2.   Exhibits. The exhibits designated in this Section and attached to this
          --------
Lease are incorporated into this Lease by reference and are to be construed as a
part of this Lease.

          Exhibit A -- Leased Premises Legal Description
          Exhibit B -- Site Plan
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     3.   Leased Premises.  Landlord hereby leases to Tenant, and Tenant hereby
          ---------------
leases and takes from Landlord, the improved real property commonly known as the
Special Weapons Storage Area near the Grant County Airport in Moses Lake,
Washington (herein the "Leased Premises" or the "Premises"). The Leased Premises
consist of the real property legally described in attached Exhibit A and the
buildings and structures shown on the Site Plan attached as Exhibit B.

     4.   Term.  The term of this Lease shall be for a period of ten (10) years,
          ----
commencing on the first day of July, 1998 and ending on the 30th day of June,
2008, unless extended as provided herein. As used herein the term "Lease Year"
shall mean the twelve (12) calendar month period commencing July 1, 1998 and
ending on June 30, 1999 and each twelve (12) calendar month period thereafter
during the term of this Lease.

     5.   Rent.
          ----

          5.1.  Minimum Rent. During the (10) year term, Tenant covenants and
                ------------
agrees to pay Landlord, without deduction or offset, as monthly minimum rent for
the Leased Premises, the following amounts, in lawful money of the United
States, per month in advance on the first day of each and every calendar month
during each and every Lease Year of the term of the Lease:

                    Lease Year                    Monthly Minimum Rent
                    ----------                    --------------------

          July 1, 1998 - June 30, 1999            $12,000.00
          July 1, 1999 - June 30, 2000            $12,300.00
          July 1, 2000 - June 30, 2001            $12,607.50
          July 1, 2001 - June 30, 2002            $12,922.69
          July 1, 2002 - June 30, 2003            $13,245.75
          July 1, 2003 - June 30, 2004            $13,576.90
          July 1, 2004 - June 30, 2005            $13,916.32
          July 1, 2005 - June 30, 2006            $14,264.23
          July 1, 2006 - June 30, 2007            $14,620.83
          July 1, 2007 - June 30, 2008            $14,986.35

If the term ends prior to its expiration date, monthly minimum rent for any
partial month at the end of the term shall be prorated on a daily basis and paid
by Tenant in advance.

          5.2.  Additional Rent.  This Lease is entered into by Landlord for the
                ---------------
express purpose of providing Landlord with net income from minimum rent, free
and clear of any and all expenses, charges, taxes, liens or impositions of any
kind. In addition to the minimum rent, Tenant shall pay as additional rent all
real or personal property taxes or other assessments, insurance premiums and
operating and maintenance charges arising out of the Leased Premises or Tenant's
use and occupancy thereof.

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     6.   Utilities.  Tenant covenants and agrees to pay all charges for heat,
          ---------
light, sewer, water and all services and public utilities which may be used in
or charged against the Leased Premises during the term of this Lease. All
amounts due hereunder for utilities shall be deemed additional rent. Landlord
shall not be liable for the failure of any utility services for any reason
whatsoever, unless caused solely by Landlord's negligence or willful misconduct.

     7.   Taxes and Assessments.  During the term of this Lease, Tenant
          ---------------------
covenants and agrees to pay all real estate taxes and assessments on the Leased
Premises or contents thereof directly to the taxing authority before
delinquency. Landlord shall provide Tenant with copies of all tax and assessment
statements that are sent to Landlord. All amounts due hereunder for real estate
taxes and assessments shall be deemed additional rent. Any taxes and assessments
payable during the year in which this Lease ends shall be prorated for the
portion of the year the Leased Premises are under lease by Tenant. At Landlord's
request, Tenant shall provide Landlord with receipts for tax payments or other
evidence of payment. With respect to assessments which may be levied against or
upon the Leased Premises, during the Lease term, Tenant shall be required to pay
each year only the amount of such annual installments as shall be payable during
any year of the Lease term (with appropriate proration for any partial year),
and Tenant shall have no obligation to continue such payments after the
termination of this Lease. Tenant shall be responsible for all personal property
taxes attributable to Tenant's property. Subject to Landlord's prior written
consent, Tenant may, at its sole discretion, appeal the valuation of the Leased
Premises for real property tax purposes.

     8.   Business Purpose.  The Leased Premises may be used and occupied by
          ----------------
Tenant for research and manufacture of aerospace and defense related products,
including but not limited to propellants, with associated testing, engineering
and management activities. Tenant shall, at its expense, comply with all laws
regulating the use of the Premises and Tenant's activities thereon.

     9.   Condition of Premises.  Tenant and its predecessor-in-interest have
          ---------------------
used and occupied the Leased Premises for a continuous period of approximately
sixteen (16) years under a prior lease dated July 14, 1982. Tenant has inspected
the Leased Premises and accepts the premises "as is," in its existing condition.
Tenant acknowledges that Landlord has made no representations to Tenant
respecting the condition of the Premises, the buildings and related improvements
or their mechanical/electrical/utility systems. Tenant shall keep the Leased
Premises neat, clean, and in a sanitary condition, to the satisfaction of the
Board of Health and Fire Department of the City of Moses Lake and its
inspectors; and shall comply with each and all applicable federal and state
statutes and all ordinances of the City of Moses Lake now in force or hereafter
enacted pertaining to the use and occupancy of said Premises by Tenant. Tenant
shall control weeds on the Premises as required by the local weed control
district.

     10.  Liability Insurance.  Tenant shall, commencing on the lease
          -------------------
commencement date and during the entire term of this Lease, keep in full force
and effect a policy or policies of commercial general liability and property
damage insurance with respect to the Leased Premises with coverage on an
"occurrence basis" for bodily injury and property damage, in an amount not less
than $3,000,000 per occurrence and $5,000,000 in the aggregate. Tenant's
commercial

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general liability insurance coverage shall be reviewed at three (3) year
intervals during the term of this Lease to determine adequacy of coverage and
compliance with current industry standards. Each such policy shall name Landlord
as an additional insured and shall contain a clause that the insurer shall not
cancel or materially change such liability insurance without giving Landlord at
least thirty (30) days prior written notice. Liability insurance shall be
written by insurance companies authorized to do business in the State of
Washington and accorded a rating by A.M. Best Company of "A" or better (or a
comparable rating by any comparable successor rating agency). A certificate of
liability insurance for each such policy shall be delivered to Landlord.

     11.  Property Insurance and Waiver of Subrogation.  Commencing on the lease
          --------------------------------------------
commencement date and at all times during the term of this Lease, Tenant shall
maintain in effect upon the Leased Premises, fire and extended property
insurance coverage for physical loss or damage to the buildings and improvements
on the Leased Premises (including earthquake) and 100% (one year) rental income
loss insurance written by insurance companies authorized to do business in the
State of Washington and accorded a rating by A.M. Best Company of "A" or better
(or a comparable rating by any comparable successor rating agency). The property
insurance policy or policies shall be written in the form of replacement cost
insurance in an amount not less than one hundred percent (100%) of the full
replacement cost of the Tenant's Building, with building ordinance and increased
cost of construction coverage. Landlord shall be designated as an additional
insured on all such policies. Said policies shall provide that notice of
cancellation of any policy or endorsement shall be given to Landlord at least
thirty (30) days prior to such cancellation. Certificates of property insurance
coverage and copies of all endorsements shall be furnished to Landlord prior to
the lease commencement date. Landlord and Tenant hereby mutually waive their
respective rights of recovery against each other for any loss insured by fire,
extended coverage or other property insurance policies existing for the benefit
of the respective parties. Each party shall obtain any policy endorsements
necessary to evidence waiver of subrogation by the insurer against the parties.

     It shall be Tenant's responsibility to carry such fire, extended coverage
and other insurance as it desires on its business and property located in or
about the Leased Premises. Tenant agrees that any and all such insurance
policies covering the business and property of Tenant 'shall be endorsed so as
to waive any subrogation claim against Landlord. Neither Landlord nor Landlord's
agent shall be liable for any damage sustained by Tenant or others, either to
person or property caused by any defects in the Leased Premises or hereafter
occurring therein; or due to the buildings on the Leased Premises or any part or
appurtenance thereof, becoming out of repair; or caused by fire or by the
bursting or leaking of water, gas, sewer or steam pipes; or from any act or
neglect of Tenant or other occupant of said buildings, or any other persons,
including Landlord or Landlord's agent or employees, or due to the happening of
any accident from any cause in and about said buildings. Tenant agrees to
defend, indemnify and hold harmless Landlord and Landlord's agents from and
against all loss, liability, cost or expense including attorneys' fees arising
out of any and all claims for damage suffered or alleged to be suffered in or
about the Leased Premises by any person, firm or corporation, except for claims
arising solely from the negligence or intentional acts of Landlord or its
agents.

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     12.  Hazardous Substances.
          --------------------

          12.1.  Compliance with Law. In its use of the Leased Premises, Tenant
                 -------------------
shall comply with all applicable laws, rules and regulations pertaining to the
use, disposal, treatment, generation, storage or sale of any substances
designated as, or containing components designated as hazardous, dangerous,
toxic or harmful, or subject to regulation by any federal, state or local law,
regulation, statute or ordinance (collectively referred to as "Hazardous
Substances"). With respect to any such Hazardous Substance, Tenant shall:

                 12.1.1.  Comply with all applicable governmental rules,
regulations and requirements regarding the proper and lawful use, sale,
transportation, generation, treatment, and disposal of Hazardous Substances; and

                 12.1.2.  Allow Landlord or Landlord's agent or representative
to enter upon the Leased Premises at all times to check Tenant's compliance with
all applicable governmental regulations regarding the Hazardous Substances.

          12.2.  Cleanup Costs, Default and Indemnification.
                 ------------------------------------------

                 12.2.1.  Tenant shall be fully and completely liable to
Landlord for any and all cleanup costs, and any and all other charges, fees,
penalties (civil and criminal) imposed by any governmental authority with
respect to Tenant's use, disposal, transportation, generation and/or sale of
Hazardous Substances, in or about the Leased Premises.

                 12.2.2.  Tenant shall indemnify, defend and save Landlord
harmless from any and all of claims, costs, fees, penalties and charges assessed
against or imposed upon Landlord (as well as Landlord's attorneys' fees and
costs) as a result of Tenant's use, disposal, transportation, generation and/or
sale of Hazardous Substances or the release thereof in or about the Leased
Premises during the term of this Lease.

                 12.2.3.  Upon Tenant's default under this Paragraph 12, in
addition to the rights and remedies set forth elsewhere in this Lease, Landlord
shall be entitled to the following rights and remedies:

                         12.2.3.1.  At Landlord's option, to terminate this
Lease for default as provided in Article 22; and

                         12.2.3.2.  To recover any and all damages associated
with the default, including, but not limited to cleanup costs and charges, civil
and criminal penalties and fees, any and all damages and claims asserted by
third parties, and Landlord's attorneys' fees and costs.

          12.3.  Landlord's Obligations.  Except for Tenant's obligations under
                 ----------------------
Section 12.1 and 12.2 above, Landlord shall indemnify, defend and save Tenant
harmless from any and

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all claims, costs, fees, penalties and charges assessed against or imposed upon
Tenant (as well as Tenant's attorneys' fees and costs) as the result of
Landlord's use, disposal, transportation, generation and/or sale of Hazardous
Substances or the release thereof in or about the Leased Premises prior to
Tenant's (or its predecessor's) entry into possession on or about July 1, 1982.
The parties acknowledge that the Hold Harmless Agreement dated March 20, 1990
(Tenant was then known as Rocket Research Company) between the parties remains
in full force and effect.

     13.  Accidents.  Tenant shall defend, indemnify and hold the Landlord and
          ---------
Landlord's agents harmless from all liability, claims or damages of every kind
and nature whatsoever that may be claimed or accrue by reason of any accident in
or about the Leased Premises or from Tenant's use or occupation of the Leased
Premises and areas adjacent thereto or caused by the acts or neglect of the
Tenant or any agent of Tenant. Tenant agrees that neither Landlord nor
Landlord's agents shall be liable to Tenant or to any person for claims arising
from any defect in the construction or present condition of the Premises,
whether known or unknown, except a claim arising out of Landlord's failure to
repair or remedy a defect for which Landlord is responsible under Section 15.2
within thirty (30) days after Tenant's written notice of such defect to
Landlord. In case Landlord shall, without fault on its part, be made a party to
any litigation related to any accident in or about the Leased Premises, Tenant's
use or occupation of the Leased Premises or any act or omission of Tenant or its
agents, then Tenant shall defend, indemnify, protect and hold Landlord harmless
and shall pay all costs, expenses, and reasonable attorneys' 'fees incurred or
paid by Landlord in connection with such litigation. All personal property on
the Leased Premises shall be at the risk of Tenant.

     14.  Damage by Fire or Other Casualty.  In case the improvements on the
          --------------------------------
Leased Premises are destroyed or substantially damaged by fire, earthquake, or
other casualty during the term of this Lease, Tenant shall give Landlord prompt
written notice thereof. If the improvements on the Leased Premises are destroyed
or substantially damaged by fire or other casualty, Landlord or Tenant shall
have the right at its option to terminate this Lease by written notice to the
other. In the event of such termination of this Lease, the rights and
liabilities of the parties hereto shall be determined and adjusted as of the
date of such substantial damage or destruction, and the Lease shall terminate.
Any such termination may be made by notice in writing of exercise of its option
to terminate the Lease within sixty (60) days following the date of the
destruction or damage. For purposes of this paragraph, damage will be deemed to
be substantial if the reasonable cost of repairing and restoring the damaged or
destroyed buildings and improvements for Tenant's use exceeds fifty percent
(50%) of the value of such buildings and improvements prior to such damage.

     If less than all or a substantial portion of the buildings and improvements
on the Leased Premises are damaged or destroyed and Landlord elects to rebuild
and restore, then the Lease shall not be terminated, but shall remain in full
force and effect subject to the following provisions. In the event that the
Lease is not terminated, Landlord will rebuild and restore, at its expense and
with reasonable diligence, the damaged or destroyed portions of the Premises as
nearly as practicable to the condition they were in prior to such damage or
destruction, provided, however, that the requirement to rebuild and restore the
Premises shall not extend to any

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furnishings, fixture, or equipment which Tenant has previously installed in the
Premises, whether or not title to such items had passed to Landlord under other
provisions of this Lease. During the period of such rebuilding and restoration
the rent shall be abated in the same ratio that the portion of the said Leased
Premises rendered for the time being unfit for occupancy shall bear to the whole
Leased Premises. Landlord and Tenant agree that any and all insurance payments
for fire damage or destruction to the improvements on the Leased Premises shall
be used for the sole purpose of repairing, rebuilding and/or restoring the
improvements on the Leased Premises, unless this Lease is terminated as the
result of such damage or destruction. If, under the terms of this Lease, the
improvements on the Leased Premises are not rebuilt or restored, the insurance
proceeds for loss of Landlord's building and property and loss of rents shall
become the property of the Landlord, and the Lease shall terminate effective as
of the date of such damage or destruction. Tenant shall release its interest and
endorse all insurance proceeds checks to Landlord when no rebuilding is
undertaken or for payment of rebuilding and restoration when such is undertaken,
provided that property insurance on Tenant's trade fixtures, equipment and
personal property shall be the property of Tenant. Notwithstanding any other
provision of this paragraph to the contrary, in the event there are insufficient
insurance proceeds available to the Landlord to rebuild and restore the Premises
damaged by casualty, Landlord shall have the right at its option to terminate
this Lease.

     15.  Maintenance and Repairs.
          -----------------------

          15.1.  Tenant's Obligations. Except as provided in Section 15.2 below,
                 --------------------
Tenant shall at all times throughout the lease term at its sole cost and expense
keep and maintain the Leased Premises and every part thereof, exterior and
interior (whether or not the need for such repairs occurs as the result of
Tenant's use, the elements or the age of any portion of the Premises), including
without limitation the interior and exterior of all buildings, exterior walls
and roofs of buildings and all building fixtures, equipment, systems, utilities
and appurtenances thereof (including lighting, heating and plumbing fixtures and
HVAC systems) and all fences, gates, parking areas, driveways, roads, exterior
lighting, landscaping and sprinkler systems in good order, condition and repair.
The costs of any such repairs shall be billed directly to and paid by Tenant.
Tenant shall immediately replace all broken glass in the Premises; make any
necessary repairs to, or replacements of all mechanical, electrical and plumbing
systems, apparatus and mechanisms; keep all plumbing operational and in good
condition and repair including pipes, drains, toilets, basins, water heaters and
the heating system of the Premises; and keep all utilities, including circuit
breaker and panel box and meters in good condition and repair. Tenant shall
permit no waste, injury or damage to the Premises. If Tenant fails or neglects
to perform its obligation to preserve and maintain the Leased Premises in good
condition and repair, then Landlord may, at its option, put or cause the same to
be put into good condition and repair, and in such case Tenant shall pay the
cost thereof on demand.

          15.2.  Landlord's Obligations.  Subject to Tenant's repair and
                 ----------------------
maintenance obligations under Section 15.1 above, Landlord agrees to maintain in
good condition and repair, at its expense, the structure and foundation of all
buildings on the Premises. Landlord shall have no other obligation to maintain
or repair the Premises or any portion thereof.

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     16.  Capital Improvements.  If the need for any major new major new
          --------------------
improvements related to Tenant's use of the Leased Premises or the repair or
replacement of any major improvement in or to the Premises, having a cost in
excess of $10,000.00 (collectively "Capital Improvement"), arises during the
lease term, Landlord or Tenant may, by written notice to the other, request that
the Capital Improvement be made. Capital Improvements shall not include normal
maintenance and repair items or the repair or replacement of improvements at a
cost of less than $10,000.00. The party requesting the Capital Improvement shall
obtain and present to the other party a description of the proposed Capital
Improvement, plans (if reasonably available) and one or more cost estimates. The
proposed Capital Improvement shall be subject to mutual approval of Landlord and
Tenant, which approval shall not be unreasonably withheld or delayed. If either
party objects to the proposed Capital Improvement or its cost, the parties agree
to negotiate in good faith to resolve the objection or to reduce the cost. If,
after good faith negotiations, the parties are unable to agree on the proposed
Capital Improvement, the Capital Improvement issue may be submitted to
arbitration as provided in Article 30 below at the request of either party. (For
purposes of this Section 16, the exclusions contained in Sections 30.3.1 and
30.3.2 shall not apply.)

     Landlord agrees to pay the cost of a mutually approved or arbitrator
ordered Capital Improvement, and Tenant agrees to wholly or partially reimburse
Landlord for the cost of such Capital Improvement by paying additional rent as
provided herein. On the first day of the first month following completion of an
approved Capital Improvement, Tenant shall commence payment of monthly
additional rent in an amount sufficient to amortize the cost of the Improvement
over a ten (10) year period with interest at the rate of ten percent (10%) per
annum. Additional rent shall be due and payable with, and in addition to,
monthly payment of minimum rent. Tenant shall have no obligation to pay such
additional rent following the expiration of the ten (10) year lease term. If
this Lease is terminated prior to the expiration of the ten (10) year lease
term, as the result of Tenant's exercise of its option to terminate under
Article 31 or as the result of Tenant's breach of this Lease, then Tenant agrees
that, in addition to any other amounts due Landlord, the full amount of
additional rent payable for Capital Improvements, which would have been paid
during the balance of the lease term (without the assessment of unearned
interest), shall become immediately due and payable as of the date of such
termination.

     17.  Alterations.  Subject to Landlord's prior written approval of plans
          -----------
and specifications, which approval shall not be unreasonably withheld or
delayed, Tenant may make alterations and improvements to the Leased Premises
reasonably necessary and appropriate for the conduct of Tenant's business.
Tenant shall have no right to make any exterior or structural alterations to any
building without Landlord's prior written consent. If Landlord consents to
Tenant's proposed alterations, Landlord shall inform Tenant in connection with
such consent whether Landlord will require Tenant to remove the proposed
alterations and restore the Premises at the expiration of the term. All such
alterations, additions and improvements shall be at the sole cost and expense of
Tenant. With the exception of any movable partitions, trade fixtures, appliances
and equipment which may be installed with Landlord's consent, all such
alterations, additions and improvements shall become the property of Landlord
and shall remain

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in and be surrendered with the Premises as a part thereof at the termination of
this Lease, without disturbance or injury, provided that, at Landlord's option
(which option must be exercised at the time consent to such alteration is given
as provided above), Tenant shall, at its expense, remove such alterations and
restore the Premises to its pre-existing condition, normal wear and tear
excepted, at the expiration or earlier termination of this Lease. If Tenant
performs work on the Premises, Tenant agrees to comply with all laws,
ordinances, rules and regulations of any authorized public authority. Tenant
further agrees to defend, indemnify and save Landlord and its property free and
harmless from lien, damage, loss or expense arising out of said work.

     Tenant shall have the right to construct on, or move additional structures
or buildings onto, the Premises subject to thirty (30) days prior written notice
to and approval by Landlord. Said buildings or structures shall be constructed
in accordance with the Grant County Building. Code. Landlord's approval shall
not be unreasonably withheld in light of the present use and type of buildings
on the Premises. Tenant shall bear all costs and expenses associated with
construction of said additional structures or buildings. Ownership of any
buildings built and permanently attached to the Premises shall revert to
Landlord, and Tenant agrees to execute any documents necessary to convey title
to said buildings to Landlord. Ownership of structures moved to or constructed
on the Premises which may be readily relocated shall remain with Tenant. Tenant
shall have, the right to remove said movable structures at any time upon thirty
(30) days prior written notice to Landlord. Tenant shall not be charged any
additional rent for the newly constructed or moved structures.

     18.  Condemnation.  If all or any substantial portion of the Leased
          ------------
Premises shall be taken by any public or quasi-public authority under the power
of eminent domain or conveyance in lieu thereof (hereinafter "condemnation"),
Landlord or Tenant shall have the right at its option to terminate this Lease.
In the event of such a termination, the rights and liabilities of the parties
shall be determined and adjusted as of the date the condemning authority has a
right to possession, and the Lease shall terminate. Upon such termination,
Tenant shall surrender possession of the Leased Premises to Landlord. Any such
termination may be made by notice in writing of its option to terminate the
Lease given within sixty (60) days following the date on which the parties
received notice of the proposed taking.

     A condemnation of a substantial portion of the Leased Premises shall be
deemed to be any of the following:

          18.1.  If twenty-five percent (25%) or more of the value of the
Premises is taken in the condemnation; or

          18.2.  If regardless of the value of the amount of the Premises taken,
the cost of repairing and restoring the remainder of the Premises for Tenant's
use exceeds twenty-five percent (25%) of the value of the entire Premises prior
to condemnation or in Tenant's good faith opinion the condemnation has rendered
the remaining Premises unusable for Tenant's actual use of the Premises.

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For purposes of this Article 18, the value of the Premises shall be the quotient
determined by dividing the total annual minimum rent by ten percent (10%). If
less than all or a substantial portion of the Premises is taken by condemnation,
then, at Landlord's option, the Lease shall remain in full force and effect
subject to the provisions set forth below. If either party cannot or does not
elect to terminate this Lease as aforesaid, this Lease shall be and remain
unaffected by any such condemnation, except that the rent shall be equitably
abated to the extent that Tenant is deprived of use of the Premises. In the
event that the Lease is not terminated, Landlord will, at its expense, restore
with reasonable diligence the remaining portions of the Premises as nearly as
practicable to the condition they were in prior to such condemnation, provided,
however, that there are sufficient condemnation proceedings available to
Landlord to restore the Premises, and provided further that the requirement to
restore the Premises shall not extend to any furnishings, fixtures, or equipment
which Tenant had previously installed in the Premises, whether or not title to
such items had passed to. Landlord under other provisions of this Lease.

     Landlord reserves, and shall be entitled to receive, the entire damage
award in the condemnation proceedings. Tenant hereby specifically grants and
assigns to Landlord any interest which Tenant may have in or to any portion of
such award by virtue of Tenant's leasehold estate. Notwithstanding the
foregoing, Tenant shall be entitled to claim compensation for Tenant's moving
expenses and the value of Tenant's trade fixtures so long as title to such
fixtures has not passed to Landlord in accordance with other provisions of this
Lease.

     19.  Inspection Fees. Tenant shall, during the term of this Lease, pay all
          ---------------
fees due the city, county, or state, on account of any inspection made on or
about the Leased Premises by any officer of said city, county, or state, which
inspections are in relation to the use and occupancy of said Premises by Tenant
or the conduct of the business of Tenant therein.

     20.  Liens and Insolvency. Tenant shall keep the Leased Premises free from
          --------------------
any and all liens, claims, and encumbrances arising out of Tenant's use and
occupancy of the Premises or out of any work performed, materials furnished or
obligations incurred by Tenant, including taxes. Tenant has no authority to
incur any debt or charge against Landlord or Landlord's property. Tenant has no
authority to create any lien against the Leased Premises for any work performed
or materials furnished for or on behalf of Tenant. If Tenant becomes insolvent
or bankrupt, or if a receiver is appointed, then Tenant shall be in default
under the terms of this Lease, and Landlord may terminate this Lease at its
option in accordance with Paragraph 22 hereof.

     21.  Signs and Advertising. Tenant may erect and install or otherwise
          ---------------------
utilize signs, symbols and other advertising or decorative matter visible from
the exterior of the Premises in accordance with applicable sign ordinances. At
the termination of this Lease, all such signs, symbols and advertising matter
attached to or painted by Tenant upon the Premises, whether on the exterior or
interior thereof, shall be removed by Tenant at its own expense. Tenant shall
repair any damage or injury to the Premises and correct any unsightly condition,
caused by the maintenance or removal of any sign.

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     22.  Landlord's Access. Landlord hereby reserves and Tenant hereby grants
          -----------------
to said Landlord or Landlord's agents, the right to enter the Leased Premises
upon reasonable notice at all reasonable times for the purpose of inspecting the
Premises and making necessary repairs when Tenant fails or refuses to make the
same, but this right, or the granting of the same, shall not be construed as an
agreement on the, part of the said Landlord to make any repairs whatsoever.
Landlord, or Landlord's agents, shall have the right to place and maintain "For
Lease" signs upon the said Premises for a period of 90 days prior to the
expiration of this Lease.

                                       11
<PAGE>

     23.  Default, Cancellation & Re-Entry.
          --------------------------------

          23.1.  Payments Deemed Rent. Time is of the essence hereof. Any
                 --------------------
payment due Landlord from Tenant hereunder shall be deemed rent. Unpaid rent and
any other payment due Landlord hereunder, which is not paid within ten (10) days
after such sum is due, shall bear interest at the rate of one and one-half
percent (1.5%) per month or the maximum lawful rate of interest, whichever is
less, from the original due date until paid.

          23.2.  Termination of Lease. If Tenant fails to keep and perform any
                 --------------------
of the covenants herein contained, Landlord may terminate this Lease upon giving
the notice required by law, and re-enter said Premises, but notwithstanding such
re-entry by Landlord, the liability of Tenant for the rent provided herein shall
not be extinguished for the balance of the term of this Lease. Upon such
termination, Landlord may recover from Tenant the following:

                 23.2.1.  Unpaid Rent at Termination. The unpaid rent,
                          --------------------------
additional rent and all other amounts that had been earned at the time of
termination.

                 23.2.2.  Unpaid Rent at Award. The worth at the time of award
                          --------------------
of the amount by which the reasonable value of the unpaid rent and additional
rent which would have been earned after termination until the time of award
exceeds the amount of such rental loss that Tenant proves could have been
reasonably avoided.

                 23.2.3.  Future Rent. The worth at the time of award of the
                          -----------
amount by which the reasonable value of the unpaid rent and additional rent for
the balance of the term of this Lease exceeds the amount of such rental loss
that Tenant proves could have been reasonably avoided; and

                 23.2.4.  Other Amounts. Any other amount necessary to
                          -------------
compensate Landlord for all losses proximately caused by Tenant's failure to
perform his obligations under this Lease or that in the ordinary course of
events would be likely to result therefrom.

          23.3.  Terms Defined. As used in this Paragraph 22, the following
                 -------------
terms are defined as follows:

                 23.3.1.  "Worth at the Time of Award." The "worth at the time
                           --------------------------
of award," of the amounts referred to in subparagraphs 23.2.2 and 23.2.3 is
computed by allowing interest at the lesser of the rate of interest specified in
subparagraph 23.1 or the maximum lawful rate. The "worth at the time of award"
of the amount referred to in subparagraph 23.2.3 is computed by discounting such
amount at the discount rate of the Federal Reserve Bank of San Francisco at the
time of award plus one percent (1%).

                 23.3.2.  "Time of Award." The "time of award" as used in
                           ----------------------------------------------
paragraph 23.2 is the date on which judgment is entered by a court of competent
-------------------------------------------------------
jurisdiction.

                                       12
<PAGE>

                 23.3.3.  "Reasonable Value." The "reasonable value" of the
                           ----------------
amount referred to in subparagraph 23.2.2 is computed by determining the
mathematical product of (1) the "reasonable annual rental value" (as herein
defined) and (2) the number of years, including fractional parts thereof,
between the date of termination and the time of award. The "reasonable value" of
the amount referred to in subparagraph 23.2.3 is computed by determining the
mathematical product of (1) the "reasonable annual rental value" (as herein
defined) and (2) the number of years, including fractional portions thereof,
remaining in the balance of the term of this Lease after the time of award. As
used in this subsection the term "reasonable annual rental value" is computed by
obtaining the sum of the three following components: (1) the minimum annual
rental; plus (2) all additional rent, paid or payable during the calendar year
immediately preceding the time of award.

                 23.3.4.  Tenant's Personal Property. If upon re-entry by
                          --------------------------
Landlord, there remains any personal property of Tenant or others upon the
Premises, Landlord may (but without the obligation to do so) remove said
personal property and place the same in a public warehouse or storage, as may be
reasonable, at the expense and risk of the owners thereof. Tenant shall
reimburse Landlord for any expense incurred by Landlord in connection with said
removal and/or storage. Tenant covenants and agrees to make good to Landlord any
deficiency arising from a re-entry and reletting of the Premises, including the
costs of any necessary renovation and alteration of the Premises, and that
portion of any leasing commission paid by Landlord and applicable to the
unexpired lease term of the Lease. Tenant shall pay such deficiency each and
every month as the amount thereof is ascertained by Landlord.

                 23.3.5.  Notice of Default. Tenant shall be and remain liable
                          -----------------
to Landlord for any and all cost, damage or expense caused by Tenant's breach of
any covenant or agreement contained herein. Prior to declaring a default under
the terms of this Lease, Landlord shall give Tenant thirty (30) days' written
notice of the default, except a default in the payment of rent or additional
rent or in the event Tenant fails to maintain insurance as required hereunder,
in which case the written notice shall be only five (5) days. In the event such
default is not cured within said thirty (30) days, or within five (5) days in
the case of a default in minimum rent or additional rent, Landlord may proceed
to take any and all action which is available to it under the terms of this
Lease or at law to protect its rights as Landlord, provided, that if the nature
of said non-monetary default is such that it cannot be cured within a period of
thirty (30) days in the exercise of due diligence by Tenant, then Tenant shall
have such additional time as may be required to accomplish the cure of said
default in the exercise of reasonable diligence.

                 23.3.6.  Attorneys' Fees. If any arbitration or litigation is
                          ---------------
brought to interpret or enforce any of the covenants or agreements of this Lease
or to recover damages or otherwise, the prevailing party in such arbitration or
litigation, including any bankruptcy court proceedings and any appeal, shall be
entitled to an award of all costs, expenses, and reasonable attorneys' fees.

     24.  Assignment and Subletting.
          -------------------------

                                       13
<PAGE>

          24.1.  Assignment. This Lease may not be assigned, in whole or in
                 ----------
part, for security or otherwise, and no assignment shall be effective, without
the written consent of Landlord. If notice of any proposed assignment is given
to Landlord at least sixty (60) days prior to its proposed effective date,
together with the instrument proposed to evidence such assignment, which
instrument contains the agreement of any assignee to assume and be bound by all
of the terms, conditions and covenants of this Lease to be performed by Tenant,
in a form satisfactory to Landlord, then Landlord shall not unreasonably
withhold its consent to the assignment. If consent is once given by the Landlord
to the assignment of this Lease, or any interest therein, Landlord shall not be
barred from afterwards refusing to consent to any further assignment. This Lease
shall not be assignable by operation of law, nor at any time when a default has
occurred and is continuing. If Tenant is a corporation, then any transfer of
this Lease from Tenant by merger, consolidation or liquidation and any change in
ownership or power to vote the majority of its outstanding voting stock, shall
constitute an assignment for the purpose of this section, provided that, subject
to Tenant's compliance with the notice and assumption requirements set forth
above, Landlord agrees to consent to any transfer of Tenant's interest under
this Lease to any entity which owns and controls Tenant or which is owned and
controlled by Tenant.

          24.2.  Subletting. The Leased Premises may not be sublet, in whole or
                 ----------
in part, and no subletting shall be effective, without the written consent of
Landlord. If notice of any proposed subletting is given to Landlord at least
sixty (60) days prior to its proposed effective date, together with instrument
proposed to evidence such subletting, then Landlord shall not unreasonably
withhold its .consent to the subletting. If consent is once given by the
Landlord to any subletting, Landlord shall not be barred from afterwards
refusing to consent to any further subletting. Notwithstanding the foregoing, no
subletting shall be permitted at any time when default has occurred and is
continuing.

          24.3.  Further Conditions. In addition, and as a further condition of
                 ------------------
the approval and effectiveness of any sublease, the minimum rent otherwise
payable under this Lease shall be increased, in the case of a sublease, to an
amount equal to the total of all amounts payable by the subtenant to the Tenant
in excess of the otherwise payable minimum rent, (less the amount of additional
rent payable by subtenant for its share of taxes, utilities and similar
charges). Such increased minimum rent shall be paid to Landlord beginning on the
effective date of such sublease or other transfer, and the additional rent and
all other charges payable under this Lease shall remain in effect as provided
herein.

          24.4.  Tenant Remains Liable. Notwithstanding any assignment, sublease
                 ---------------------
or transfer, the original Tenant shall remain fully liable under this Lease for
the payment of all sums due and the performance of all terms and covenants of
this Lease. Any increased minimum rent payable pursuant to the preceding
provisions of this section shall remain in effect until a higher minimum rent
otherwise provided herein, if so provided, would be payable.

          24.5.  Reimbursement of Expenses. Tenant shall reimburse Landlord for
                 -------------------------

                                       14
<PAGE>

Landlord's reasonable expenses including attorney's fees incurred in conjunction
with the processing and documentation of any requested assignment or subletting.

     25.  Expiration of Lease. Tenant covenants and agrees to surrender the
          -------------------
Leased Premises without notice at the expiration of the term of this Lease in
the same or better condition as when first obtained by Tenant, reasonable wear
and tear and damage by insurable risks excepted. Tenant further agrees to remove
all of its personal property from said Premises, to clean the Premises and to
deliver to Landlord all keys to the Premises at the expiration of the term. At
the expiration or earlier termination of this Lease, Landlord shall have the
right, but not the obligation, to remove from the Leased Premises all personal
property located therein, and may store the same in any place selected by
Landlord, including, but not limited to, a public warehouse, at the expense and
risk of the owner thereof.

     26.  Hold-Over. If Tenant shall, with the written consent of Landlord, hold
          ---------
over after the expiration of the term of this Lease, such tenancy shall be for
an indefinite term on a month to month tenancy, which tenancy may be terminated
as provided by the laws of the State of Washington. During such tenancy, Tenant
agrees to pay to Landlord rent in an amount equal to one hundred fifty percent
(150%) of the rent payable prior to the expiration of the Lease term, unless a
different rate is agreed upon, and to be bound by all of the terms, covenants,
and conditions as herein specified, so far as applicable.

     27.  Bankruptcy. If at any time: (a) Tenant makes any general assignment or
          ----------
general arrangement for the benefit of creditors; (b) Tenant files or has filed
against it a petition in bankruptcy, including reorganization or arrangement, or
(c) a trustee or receiver is appointed to take possession of any of Tenant's
assets located at the Premises or of Tenant's interest in this Lease, then
Landlord may, if Landlord so elects, at any time thereafter, terminate this
Lease upon giving to Tenant ten (10) days notice in writing of Landlord's
intention to do so, and this Lease shall expire and come to an end at the date
fixed in such notice as if the date were the date originally fixed in this Lease
for the expiration hereof. If the Landlord does not exercise the foregoing
option to terminate or if it is precluded by law from doing so, then this Lease,
being a lease of nonresidential real property, shall be deemed rejected and
terminated by Tenant pursuant to Section 365(d)(4) of the United States
Bankruptcy Code, as now in effect or as hereafter amended, unless Tenant shall
have affirmatively and after notice and a hearing obtained a bankruptcy court
order assuming the Lease in full, curing all past defaults, and providing
adequate assurances of future performance.

     28.  Late Charge. Tenant acknowledges that late payment by Tenant to
          -----------
Landlord of rent or other sums due hereunder will cause Landlord to incur costs
not contemplated by this Lease, the exact amount of which would be extremely
difficult and impractical to ascertain. Such costs include, but are not limited
to, processing and accounting charges, and late charges which may be imposed on
Landlord by the terms of any mortgage or deed of trust covering the Premises.
Therefore, in the event Tenant should fail to pay any installment of rent or any
other sum due hereunder within ten (10) days after such sum is due, Tenant-shall
pay to Landlord as additional rent a late charge equal to five percent (5%) of
each such installment or sum. Waiver

                                       15
<PAGE>

of said five percent (5%) late charge with respect to any installment or sum
shall not be deemed to constitute a waiver with respect to any subsequent
installment or sum so due.

                                       16
<PAGE>

     29.  Notices. All notices under and payments made pursuant to this Lease
          -------
shall be given or made to the respective parties hereto at the following
addresses:

     TO LANDLORD:        Zaser & Longston, Inc.
                         1802 136th Place N.E.
                         Bellevue, WA 98005

     TO TENANT:          Primex Aerospace Company
                         11441 Willows Rd.
                         P.O. Box 97009
                         Redmond, WA 98073-9709

unless by prior notice hereunder a different person or address shall have been
specified for such purpose, in which event, notices and payments shall be made
as so specified.  All notices shall be in writing and shall be deemed to have
been effectively given upon the receipt thereof if delivered by hand or sent by
ordinary mail, or upon the mailing thereof if mailed by certified mail, return
receipt requested, addressed as above specified.

     30.  Arbitration.
          -----------

          30.1.  Matters Subject to Arbitration. The parties agree that
                 ------------------------------
potential disputes and issues between Landlord and Tenant regarding the meaning
and interpretation of certain provisions of this Lease and the correct
determination or calculation of certain amounts due hereunder should be resolved
by arbitration, not litigation. Accordingly, the parties agree that, with the
exception of the matters described in Section 30.3, disputes and issues arising
out of this Lease shall be subject to arbitration, unless otherwise mutually
agreed.

          30.2.  Arbitration Procedure. Any arbitration specified in this Lease
                 ---------------------
shall be conducted in Seattle, Washington or other mutually acceptable location
by one (1) arbitrator selected in accordance with the arbitration rules of the
American Arbitration Association ("AAA") or other mutually acceptable dispute
resolution or arbitration service. The arbitrator shall be selected from the
panel of qualified commercial arbitrators in accordance with the rules of the
AAA. The arbitrator shall render his decision within thirty (30) days after the
scheduled arbitration hearing. The decision of the arbitrator shall be final,
binding and conclusive upon the parties, and a judgment may be rendered thereon
in any court having jurisdiction over the Leased Premises and the parties
hereto. Landlord and Tenant shall each pay one half (1/2) of the cost and
expense of the AAA and its arbitrator for such arbitration, provided that the
arbitrator shall have authority to award to the prevailing party in the
arbitration its reasonable attorneys' fees and all costs of arbitration
including the fees of the arbitrator.

          30.3.  Matters Not Subject to Arbitration. There shall be no
                 ----------------------------------
arbitration of issues, disputes or matters except those identified in Section
29.1 above as matters to be resolved by

                                       17
<PAGE>

arbitration unless Landlord and Tenant agree in writing to arbitrate other
matters. Even if a matter is otherwise subject to arbitration, at the election
of either Landlord or Tenant, the following matters shall not be submitted to
arbitration:

                 30.3.1.  Claims or causes of action in equity or seeking
primarily equitable relief;

                 30.3.2.  Causes of action or claims which, in the aggregate of
all actions or claims in the proceeding, seek damages or relief in excess of
Twenty Five Thousand Dollars ($25,000.00);

                 30.3.3.  Proceedings in which a party or parties other than
Landlord and Tenant are joined or are required to be joined under applicable
law; or

                 30.3.4.  Unlawful detainer or other possessory actions
following Tenant's default.

A party shall make its election to proceed with legal action, instead of
arbitration by notice, in writing, (i) if the party making the election is the
moving party, then at least five (5) days prior to such party's institution of
legal proceedings; or (ii) if the party making the election is not the moving
party, then within ten (10) days after receipt of the other party's demand for
arbitration.

     31.  Tenant's Option to Terminate. On the condition that (a) no default
          ----------------------------
exists at the time Tenant gives its early termination notice or at the
expiration of the first five (5) Lease Years on June 30, 2003, and (b) Tenant
pays Landlord the early termination payment described herein, Tenant shall have
the right and option to terminate the lease at the expiration of the first five
(5) Lease Years on June 30, 2003 ("Early Termination") as provided herein.
Tenant may exercise its Early Termination option only by (i) giving Landlord not
less than six 6) months' prior written notice of its Early Termination election
and (ii) paying Landlord on or before June 30, 2003, the sum of (y) $650,000.00,
plus (z) an amount equal to additional rent attributable to any Capital
Improvement otherwise payable during the last five (5) years of the lease term
as provided in Paragraph 16 above (collectively the "Early Termination
Payment"). If Tenant exercises its Early Termination option and makes the early
termination payment required hereunder, the minimum rent and all other
obligations under the lease shall be paid and performed as of the date of
termination, June 30, 2003, and the lease shall then terminate.

     32.  Non-Waiver of Breach. The failure of Landlord or Tenant to insist upon
          --------------------
strict performance of any of the covenants and agreements of this Lease by the
other party, shall not be construed to be a waiver or relinquishment of any
such, or any other covenants or agreements, but the same shall be and remain in
full force and effect during the term of this Lease.

     33.  Successors. The covenants and agreements of this Lease shall be
          ----------
binding upon the successors and assigns of the parties hereto.

                                       18
<PAGE>

     34.  Quiet Enjoyment. Landlord covenants that if and so long as Tenant pays
          ---------------
the minimum rent, additional rent and all other sums due hereunder and performs
all of the covenants, conditions and agreements aforesaid, Tenant shall and may
peaceably and quietly have, hold and enjoy the Premises for the term aforesaid,
subject, however, to the terms of this Lease.

     35.  Captions. The words "Landlord" and "Tenant" as used herein shall
          --------
include the plural as well as both genders. The paragraph headings of this Lease
are not part of this Lease and, shall have no affect upon the construction or
interpretation of any part hereof.

     36.  Governing Law. This Lease shall be governed by and construed pursuant
          -------------
to the laws of the State of Washington.

     37.  Limitation of Liability. In the event of any default by Landlord
          -----------------------
hereunder, Tenant shall look only to Landlord's interest in the Leased Premises
for the satisfaction of Tenant's remedies; and no other property or assets of
Landlord shall be subject to levy, execution or other 'enforcement procedure for
the satisfaction of Tenant's remedies under or with respect to this Lease.

     38.  Partial Invalidity. Any provision of this Lease which shall prove to
          ------------------
be invalid, void or illegal shall in no way affect, impair or invalidate any
other provision hereof and such other provisions shall remain in full force and
effect.

     39.  Corporate Authority. If Tenant is a corporation, each individual
          -------------------
executing this Lease on behalf of said corporation represents and warrants that
he is duly authorized to execute and deliver this Lease on behalf of said
corporation in accordance with a duly adopted resolution of the Board of
Directors of said corporation or in accordance with the bylaws of said
corporation, and that this Lease is binding upon said corporation in accordance
with its terms. If Tenant is a corporation Tenant shall, upon execution of this
Lease, deliver to Landlord a certified copy of a resolution of the Board of
Directors of said corporation authorizing or ratifying the execution of this
Lease. Landlord is a corporation, and Landlord agrees to deliver to Tenant upon
execution of this Lease similar evidence of corporate authority to execute this
Lease.

     40.  Entire Agreement. There are no verbal or other agreements (unless
          ----------------
attached hereto) which modify or affect this Lease. This Lease supersedes any
and all prior agreements executed by or on behalf of the parties hereto
regarding the Premises. Neither Landlord nor Tenant shall be bound by any
understanding, agreement, promise or representation, expressed or implied, not
specified herein or attached hereto.

                                       19
<PAGE>

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

LANDLORD:                          ZASER & LONGSTON, INC.

                                   By:    /s/
                                       ------------------------------
                                         Name:  Greg D. Zaser
                                         Title   President

TENANT:                            PRIMEX AEROSPACE COMPANY

                                   By:    /s/
                                       ------------------------------
                                         Name: W.W. Smith
                                         Title: President

STATE OF WASHINGTON)
                      ) ss.
COUNTY OF KING        )

     On this 11/th/ day of March, 1998, before me, the undersigned, a Notary
Public in and for the State of Washington, duly commissioned and sworn,
personally appeared Greg D. Zaser to me known to be the President of ZASER &
LONGSTON, INC., the corporation that executed the foregoing instrument, and
acknowledged the said instrument to be the free and voluntary act and deed of
said corporation, for the uses and purposes therein mentioned, and on oath
stated that he is authorized to execute the said instrument and that the seal
affixed is the corporate seal of said corporation.

     WITNESS MY HAND AND OFFICIAL SEAL the day and year first above written.

                                       /s/
                              -----------------------------------
                              Printed Name: Judith Y. Plute
                              NOTARY PUBLIC in and for the State
                              of Washington residing at ISSAQUAH
                              My Commission expires: 7/28/2001

                                       20
<PAGE>

STATE OF WASHINGTON   )
                         ) ss.
COUNTY OF KING           )

     On this 10/th/ day of March, 1998, before me, the undersigned, a Notary
Public in and for the State of Washington, duly commissioned and sworn,
personally appeared W.W. Smith to me known to be the President of PRIMEX
AEROSPACE COMPANY, the corporation that executed the foregoing instrument, and
acknowledged the said instrument to be the free and voluntary act and deed of
said corporation, for the uses and purposes therein mentioned, and on oath
stated that he is authorized to execute the said instrument and that the seal
affixed is the corporate seal of said corporation.

     WITNESS MY HAND AND OFFICIAL SEAL the day and year first above written.

                                       /s/
                              -----------------------------------
                              Printed Name: Linda J. Vincent
                              NOTARY PUBLIC in and for the State
                              of Washington residing at Redmond, WA
                              My Commission expires: 01/06/2000

                                       21
<PAGE>

                                   EXHIBIT A

                               LEGAL DESCRIPTION

That part of Larson Air Force Base located in the South half of Sections 15 and
16, Township 20 North, Range 28 E.W.M., Grant County, Washington, described as
follows:

Beginning at a point 16,950.89 feet North and 2,822.58 feet West of the
Southeast corner of Section 33, Township 20 North, Range 28 E.W.M., (whose
Washington State Grid South zone coordinates are Y=674047.08 - X=2298909.20 and
are referred to U.S.C. & G.S. Station "SPAD" whose Washington State Grid South
zone coordinates are Y=676911.66 - X=2288625.74); thence South 72 degrees 40
feet 29 inches East, a distance of 2,526.41 feet; thence North 17 degrees 18
feet 57 inches East, a distance of 813.11 feet; thence South 72 degrees 42 feet
41 inches East, a distance of 51.31 feet, to the P.C. of a curve to the right
having a radius of 369.31 feet; thence Southeasterly along said curve through a
central angle of 24 degrees 32 feet 20 inches for a distance of 158.17 feet;
thence North 17 degrees 18 feet 57 inches East, a distance of 158.93 feet;
thence North 72 degrees 41 feet 3 inches West, a distance of 475.21 feet; thence
North 17 degrees 18feet 57 inches East, a distance of 147.20 feet; thence North
72 degrees 41 feet 3 inches West, a distance of 2,525.51 feet; thence South 17
degrees 17 feet 48 inches West, a distance of 1,085.51 feet; thence South 72
degrees 40 feet 29 inches East, a distance of 269.24 feet to the point of
beginning.

                                       22<PAGE>

                                                                   Exhibit 10.19

--------------------------------------------------------------------------------
                                LEASE AGREEMENT
--------------------------------------------------------------------------------

                       THE INDUSTRIAL DEVELOPMENT BOARD
                            OF THE CITY OF ANNISTON

                                      AND

                         DEFENSE RESEARCH INCORPORATED

                           DATED AS OF MARCH 1, 1995

--------------------------------------------------------------------------------
The interest of The Industrial Development Board of the City of Anniston in this
Lease Agreement (except for certain rights personal to the Board) and in any
rents, revenues and receipts derived from the leasing or sale of the Project
referenced in this Lease Agreement has been assigned to SouthTrust Bank of
Alabama, National Association, as agent under Mortgage and Indenture dated as of
March 1, 1995 from the Board.
--------------------------------------------------------------------------------
<PAGE>

This Lease Agreement was prepared by Heyward C. Hosch of Walston, Stabler,
Wells, Anderson & Bains, Financial Center, Suite 500, 505 20th Street North,
Birmingham, Alabama 35203
<PAGE>

                                LEASE AGREEMENT

                               TABLE OF CONTENTS
                               -----------------

<TABLE>
<S>                                                                         <C>
RECITALS..................................................................  1

                                   ARTICLE 1

            Definitions and Other Provisions of General Application

     SECTION 1.1     Definitions..........................................  1
     SECTION 1.2     Date of Lease Agreement..............................  5
     SECTION 1.3     Enforceability.......................................  5
     SECTION 1.4     Effect of Headings and Table of Contents.............  5
     SECTION 1.5     Successors and Assigns...............................  5
     SECTION 1.6     Governing Law........................................  6
     SECTION 1.7     Execution of Counterparts............................  6
     SECTION 1.8     Notices..............................................  6
     SECTION 1.9     Investment of Special Funds; Surplus
                       After Bonds Paid...................................  6
     SECTION 1.10    Ratification of Abatement Agreement..................  7

                                   ARTICLE 2

      Representations and Warranties; Provisions Respecting Relationships

     SECTION 2.1    Representations by the Issuer.........................  7
     SECTION 2.2    Representations by the User...........................  7
     SECTION 2.3    Issuer and User as Landlord and Tenant................  8
     SECTION 2.4    Covenant of Quiet Enjoyment: Rights Against
                      Third Parties.......................................  8
     SECTION 2.5    Issuer's Liabilities Limited..........................  8
     SECTION 2.6    Certain Prior Agreements Canceled.....................  9

                                   ARTICLE 3

     Demising Clauses.....................................................  9

                                   ARTICLE 4

                            The Series A Facilities

     SECTION 4.1    Acquisition of Series A Facilities.................... 10
     SECTION 4.2    No Warranty by Issuer................................. 11
</TABLE>

                                       i
<PAGE>

<TABLE>
<S>                                                                                  <C>
     SECTION 4.3    Remedies Against Vendors, Contractors, Subcontractors,
                    and Sureties.................................................... 11
     SECTION 4.4    Completion of the Series A Facilities........................... 11

                                   ARTICLE 5

   Lease Term; Payment and Indemnity Provisions: Substitute Letter of Credit

     SECTION 5.1    Initial Lease Term.............................................. 12
     SECTION 5.2    Rental and Payment Provisions................................... 12
     SECTION 5.3    Advances by Issuer or Agent..................................... 13
     SECTION 5.4    Indemnity of Issuer, Agent and Holders.......................... 13
     SECTION 5.5    Payment of Taxes and Other Governmental Charges................. 14
     SECTION 5.6    Nature of Obligations of User................................... 15
     SECTION 5.7    Substitute Letter of Credit..................................... 15

                                   ARTICLE 6

                Maintenance, Alterations Replacements: Insurance

     SECTION 6.1    Maintenance, Repairs, Alterations, Use in Connection with
                    other Facilities; Easements Granted by Issuer................... 16
     SECTION 6.2    Substitution and Replacement for Equipment...................... 17
     SECTION 6.3    Installation By User of Machinery and Equipment................. 17
     SECTION 6.4    Insurance Required.............................................. 17

                                   ARTICLE 7

           Provisions Respecting Damage, Destruction and Condemnation

     SECTION 7.1    Damage and Destruction.......................................... 20
     SECTION 7.2    Condemnation.................................................... 21

                                   ARTICLE 8

   Provisions Relating to Conveyance of the Project, the Agent and the Bonds

     SECTION 8.1    Assignment and Subleasing of Project by User.................... 23
     SECTION 8.2    Mortgage of the Project and Assignment of Lease Agreement
                    and Rents by the Issuer: Restrictions on Amendments of
                    Lease Agreement and Indenture................................... 23
     SECTION 8.3    Restrictions on Mortgage or Sale of Project by Issuer........... 24
</TABLE>
                                      ii
<PAGE>

<TABLE>
     <S>                                                                   <C>
     SECTION 8.4    Redemption of Bonds................................... 24

                                   ARTICLE 9

     Covenants of the User................................................ 24

                                   ARTICLE 10

                         Events of Default and Remedies

     SECTION 10.1    Events of Default Defined............................ 26
     SECTION 10.2    Remedies on Default.................................. 27
     SECTION 10.3    Agreement to Pay Attorneys' Fees and Expenses........ 28
     SECTION 10.4    Waivers of Past Defaults............................. 28
     SECTION 10.5    Availability of Remedies............................. 28

                               ARTICLE 11 Options

     SECTION 11.1    Option to Terminate.................................. 29
     SECTION 11.2    Options to Extend and Renew.......................... 29
     SECTION 11.3    Option to Purchase Project........................... 30
     SECTION 11.4    Option to Purchase Portions of Protect Site.......... 30
     SECTION 11.5    Conveyance on Exercise of Option to Purchase......... 31
</TABLE>

                                      iii
<PAGE>

                                LEASE AGREEMENT
                                ---------------

     THIS LEASE AGREEMENT dated as of March 1, 1995 is entered into by THE
INDUSTRIAL DEVELOPMENT BOARD OF THE CITY OF ANNISTON, a public corporation
organized under the laws of the State of Alabama (the "Issuer"), and DEFENSE
RESEARCH INCORPORATED (the "User").

                                   Recitals
                                   --------

     Pursuant to Division 1 of Article 4 of Chapter 54 of Title 11 of the Code
of Alabama 1975 (Section 11-54-80 et seq.) and for the purposes expressed
therein, the Issuer and the User have executed and delivered this Lease
Agreement simultaneously with the issuance and sale by the Issuer of its
$1,500,000 Industrial Development Revenue Bonds, Series A (Defense Research
Incorporated Project), dated the date of delivery and payment therefor, to
finance the acquisition, construction and installation of the Project described
herein, under and pursuant to that certain Mortgage and Indenture dated as of
March 1, 1995 from the Issuer to SouthTrust Bank of Alabama, National
Association, as Agent, First Alabama Bank, as Holder of Series A Bonds
thereunder, and SouthTrust Bank of Alabama, National Association, as Holder of
Series A Bonds thereunder; said Mortgage and Indenture being recorded in the
Office of the Judge of Probate of Calhoun County, Alabama simultaneously
herewith.

     NOW, THEREFORE, for and in consideration of the premises and the mutual
covenants hereinafter contained, the parties hereto covenant, agree and bind
themselves as follows:

                                   ARTICLE 1

                       Definitions and Other Provisions
                            of General Application

     SECTION 1.1    Definitions

     For all purposes of this Lease Agreement, except as otherwise expressly
provided or unless the context otherwise requires:

          (1)  The terms defined in this Article have the meanings assigned to
     them in this Article and include the plural as well as the singular.

          (2)  All accounting terms not otherwise defined herein have the
     meanings assigned to them, and all computations herein provided for shall
     be made, in accordance with generally accepted accounting principles. All
     references herein to "generally accepted accounting principles" refer to
     such principles as they exist at the date of application thereof.

          (3)  All references in this instrument to designated "Articles,"
     "Sections" and other subdivisions are to the designated Articles, Sections
     and subdivisions of this instrument as originally executed.

                                       1
<PAGE>

          (4)  The terms "herein", "hereof" and "hereunder" and other words of
     similar import refer to this Lease Agreement as a whole and not to any
     particular Article, Section or other subdivision.

          (5)  The term "person" shall include any individual, corporation,
     partnership, joint venture, association, trust, unincorporated organization
     and any Governmental Authority.

          (6)  Capitalized terms used herein without definition shall have the
     respective meanings assigned thereto in the Indenture.

     Abatement Agreement shall mean that certain Abatement Agreement dated
     -------------------
January 30, 1995 among the Issuer and the User.

     Additional Rent shall mean that portion of the Rent payable under Section
     ---------------
5.02(b).

     Affiliate of any specified person shall mean any other person directly or
     ---------
indirectly controlling or controlled by or under direct or indirect common
control with such specified person. For purposes of this definition, "control"
when used with respect to any specified person means the power to direct the
management and policies of such person, directly or indirectly, whether through
ownership of voting securities, by contract or otherwise; and the terms
"controlling" and "controlled" have meanings correlative to the foregoing.

     Agent shall mean the person named as the "Agent" in the Indenture until a
     -----
successor shall have become such pursuant to the applicable provisions of the
Indenture, and thereafter "Agent" shall mean such successor.

     Basic Rent shall mean that portion of the Rent payable under Section
     ----------
5.02(x).

     Bond Payment Date shall mean a date on which any installment of the
     -----------------
principal of (and premium, if any) or interest on the Bonds is due and payable,
whether at the stated maturity or due date, or on a date fixed for optional or
mandatory redemption of any Bond of any series of Bonds, or upon acceleration of
the Bonds.

     Contribution Agreement shall mean that certain Contribution Agreement dated
     ----------------------
the date of execution by and among the Calhoun County Commission, the Calhoun
County Economic Development Commission, Forward Calhoun County, and the Issuer,
as providers thereunder, and the Issuer for the purposes thereof.

     Contribution Amount shall mean the aggregate amounts contributed for the
     -------------------
Series A Facilities pursuant to the Contribution Agreement and as earnest money
pursuant to the Purchase Contract.

                                       2
<PAGE>

     Credit Obligor shall mean Deutsche Bank North America Holding Corporation,
     --------------
and its successors and assigns, until a Substitute Letter of Credit shall have
been accepted by the Agent and thereafter "Credit Obligor" shall mean the issuer
of such Substitute Letter of Credit.

     Engineer shall mean a person qualified to practice as an engineer under the
     --------
laws of the State, who shall be appointed by the User and acceptable to the
Agent.

     Equipment shall have the meaning assigned in Demising Clause III.
     ---------

     Event of Default shall have the meaning assigned in Article 10.  An Event
     ----------------
of Default shall "exist" if an Event of Default shall have occurred and be
continuing.

     Financing Documents shall mean collectively the Bonds, Indenture, Lease
     -------------------
Agreement, Guaranty, Purchase Contract, and Contribution Agreement and Letter of
Credit.

     Governmental Authority shall mean any federal, state, county, municipal, or
     ----------------------
other government, domestic or foreign, and any agency, authority, department,
commission, bureau, board, court or other instrumentality thereof.

     Guaranty shall mean the Guaranty Agreement dated as of March 1, 1995 from
     --------
the User and CMS, Inc.

     Holders shall have the meaning assigned in the Indenture.
     -------

     Improvements shall have the meaning assigned in Demising Clause II.
     ------------

     Indenture shall mean that certain Mortgage and Indenture dated as of March
     ---------
1, 1995 among the Issuer, the Agent and the Holders, including any amendments or
supplements to such instrument from time to time entered into pursuant to the
applicable provisions hereof and thereof.

     Issuer shall mean the person named as the "Issuer" in the first paragraph
     ------
of this instrument until a successor corporation shall have become such pursuant
to the applicable provisions of the Indenture, and thereafter "Issuer" shall
mean such successor corporation.

     Lease Agreement shall mean this instrument as originally executed or as it
     ---------------
may at any time be supplemented, modified or amended by one or more supplemental
leases or other instruments supplemental hereto entered into pursuant to the
applicable provisions of the Indenture and hereof.

     Lease Term shall mean collectively (i) the term of the leasehold estate
     ----------
granted in Section 5.01 of this Lease Agreement and (ii) each extension and
renewal term elected by the User pursuant to Section 11.02.

                                       3
<PAGE>

     Letter of Credit shall mean (i) the initial letter of credit delivered to
     ----------------
the Agent on the date of delivery of the Bonds, and (ii) unless the context or
use indicates another or different meaning or intent, any Substitute Letter of
Credit delivered to the Agent.

     Letter of Credit Termination Date shall mean the date on which the Letter
     ---------------------------------
of Credit will, by its terms, expire unless the Letter of Credit is terminated
on an earlier date in accordance with its terms.

     Net Proceeds when used with respect to any insurance or condemnation award,
     ------------
means the gross proceeds from the insurance or condemnation award with respect
to which that term is used remaining after payment of all reasonable expenses
(including reasonable attorneys' fees and any extraordinary fee of the Agent)
incurred in the collection of such gross proceeds.

     Project shall mean the Project Site, the Improvements, the Equipment, as
     -------
the same may at any time exist, and all other property and rights referred to or
intended so to be, in the Demising Clauses hereof, less any portion thereof that
may be released from this Lease Agreement or the Indenture or taken by eminent
domain.

     Project Site shall mean the real estate described in Demising Clause I.
     ------------

     Purchase Contract shall mean that certain Contract of Purchase and Sale
     -----------------
dated the date of execution by and between the Municipality and the Issuer.

     Rent shall mean collectively Additional Rent and Basic Rent.
     ----

     Series A Facilities shall mean that portion of the Project to be acquired
     -------------------
or constructed with the proceeds of the Series A Bonds or with funds advanced or
paid pursuant to Article 4 of this Lease Agreement.

     Series A Facilities Costs shall mean all costs of acquiring, constructing,
     -------------------------
equipping and improving the Series A Facilities, including without limitation:

          (1)  the cost of acquisition of the Project Site,

          (2)  the cost of labor, materials and supplies furnished or used in
     the acquiring, construction, installation or equipping, of buildings and
     improvements,

          (3)  acquisition, transportation and installation costs for personal
     property and fixtures,

          (4)  fees for architectural, engineering and supervisory services,

          (5)  expenses incurred in the enforcement of any remedy against any
     contractor, subcontractor, materialmen, vendor, supplier or surety,

                                       4
<PAGE>

          (6)  interest accruing on the Series A Bonds until the Series A
     Facilities are placed in service,

          (7)  expenses incurred by the Issuer and the User in connection with
     the financing of the Series A Facilities, including legal, consulting and
     accounting fees,

          (8)  reimbursement to the User for any of the foregoing costs, fees
     and expenses set forth in (1) through (7) above, paid with funds thereof.

     State shall mean the State of Alabama.
     -----

     Substitute Letter of Credit shall mean a letter of credit delivered to the
     ---------------------------
Agent in substitution for a then existing letter of credit as more particularly
provided in Section 5.07 of this Lease Agreement.

     Unimproved when used with reference to the Project Site means any part of
     ----------
the Project Site upon the surface of which no part of a building or other
structure rests.

     User shall mean Defense Research Incorporated and its successors and
     ----
assigns.

     SECTION 1.2    Date of Lease Agreement

     The date of this Lease Agreement is intended as and for a date for the
convenient identification of this Lease Agreement and is not intended to
indicate that this Lease Agreement was executed and delivered on said date, this
Lease Agreement being executed on the dates of the respective acknowledgments
hereto attached.

     SECTION 1.3    Enforceability

     If any provision in this Lease Agreement shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby.

     SECTION 1.4    Effect of Headings and Table of Contents

     The Article and Section headings herein and in the Table of Contents are
for convenience only and shall not affect the construction hereof.

     SECTION 1.5    Successors and Assigns

     All covenants and agreements in this Lease Agreement by the Issuer or the
User shall bind their respective successors, assigns, heirs, administrators and
executors, whether so expressed or not.

                                       5
<PAGE>

     SECTION 1.6    Governing Law

     This Lease Agreement shall be construed in accordance with and governed by
the laws of the State of Alabama.

     SECTION 1.7    Execution of Counterparts

     This Lease Agreement may be executed in several counterparts, each of which
shall be an original and all of which shall constitute but one and the same
instrument.

     SECTION 1.8    Notices

     All notices, demands, consents, certificates or other communications
hereunder shall be in writing, shall be sufficiently given and shall be deemed
given when delivered personally to the party or to an officer of the party to
whom the same is directed, or mailed by registered or certified mail, postage
prepaid, or sent by telecopy or facsimile if followed by mailing or sending by
overnight courier the original or a hard copy thereof as herein provided (with
date of receipt to be determined by manner of delivery of such original or hard
copy documents) or sent by overnight courier, addressed as follows:

          (1)  if to the Issuer, at City Hall, Anniston, Alabama 35203;

          (2)  if to the User, at 4904 Eisenhower Blvd, Tampa Florida 33634
     (Attn: General Counsel [James D. Foyil]), and 1205 Front Street, Anniston,
     Alabama 36201; and

          (3)  if to the Agent at SouthTrust Bank of Alabama, National
     Association, 1000 Quintard Avenue, Anniston, Alabama 36201 (Attention:
     Senior Trust Officer [Joseph W. Cotlin]).

A duplicate copy of each notice, certificate or other communication given
hereunder by either the Issuer or the User to the other shall also be given to
the Agent.  The Issuer, the User, the Agent and the original purchaser, may, by
notice given hereunder, designate any further or different addresses to which
subsequent notices, certificates or other communications shall be sent.

     Any such notice or other document shall be deemed to be received as of the
date delivered, if delivered personally, or as of three (3) days after the date
deposited in the mail, if mailed, or the next Business Day, if sent by overnight
courier.

     SECTION 1.9    Investment of Special Funds; Surplus After Bonds Paid

     (a)  The Issuer shall cause any money held as a part of the Special Funds
to be invested or reinvested in Qualified Investments as directed by the User.
Any interest bearing deposits, including certificates of deposit, issued by or
deposited with the Agent shall be deemed to be investments and not trust
deposits.

                                       6
<PAGE>

     (b)  If, after full payment of the Bonds and full reimbursement of the
Contribution Amount as provided in Section 2.02 of the Contribution Agreement
and Section 5.03 of the Purchase Contract, there is any surplus remaining in the
Special Funds, the Issuer will promptly pay such surplus to the User.

     SECTION 1.10   Ratification of Abatement Agreement

     The Issuer does hereby make, grant, ratify and confirm all abatements of
taxes set forth in the Abatement Agreement.

                                   ARTICLE 2

                        Representations and Warranties;
                      Profisions Respecting Relationships
                     of Issuer and User and Third Parties

     SECTION 2.1    Representations by the Issuer
                    -----------------------------

     The Issuer makes the following representations:

          (1)  The Issuer is duly organized and validly existing under the
     Enabling Law; has legal authority and power to enter into and perform this
     Lease Agreement; by proper corporate action has duly authorized, executed
     and delivered this Lease Agreement; and is not in default under its
     certificate of incorporation, as amended, its bylaws, or the laws of the
     State.

          (2)  The Issuer has determined that the issuance of the Series A
     Bonds, the acquisition, construction, equipping and improvement of the
     Series A Facilities and the Project and the demise of the same pursuant to
     this Lease Agreement will be in furtherance of the purposes of the Issuer's
     incorporation and the Enabling Law.

          (3)  The Series A Bonds will be issued and delivered contemporaneously
     with the delivery of this Lease Agreement.

     SECTION 2.2    Representations by the User

     The User makes the following representations:

                                       7
<PAGE>

     (a)  The User is duly incorporated under the laws of the State of Delaware
and is duly qualified to do business in the State, is not in violation of any
provisions of its articles of incorporation, its bylaws or the laws of the State
or the State of Delaware, has power to enter into this Lease Agreement, and by
proper corporate action has duly authorized the execution and delivery of this
Lease Agreement.

     (b)  The financing of the Project through the issuance of the Bonds and the
leasing of the Project to the User has induced the User to enlarge, expand and
improve existing operations in the State as provided in the Enabling Law.

     (c)  The User intends to operate the Project for manufacturing, production,
assembling, processing, storing and distribution of such agricultural,
manufactured or mineral products as the User shall determine and in such a
manner that it will constitute a "project" within the meaning of the Enabling
Law.

     (d)  This Lease Agreement is necessary to promote and further the financial
and economic interests of such User and the assumption by such User of its
obligations hereunder will result in direct financial benefits to such User.

     SECTION 2.3    Issuer and User as Landlord and Tenant

     Upon delivery, this Lease Agreement shall govern the relationship of the
parties hereto as landlord and tenant.

     SECTION 2.4    Covenant of Quiet Enjoyment; Rights Against Third Parties

     (a)  So long as the User perform and observe all the covenants and
agreements on the part thereof herein contained, the User shall peaceably and
quietly have, hold and enjoy the Project during the Lease Term subject to all
the terms and provisions hereof.

     (b)  The User may, at the cost and expense thereof and in the name thereof
or in the name of the Issuer, prosecute or defend any action or proceeding, or
take any other action involving third persons which the User deem reasonably
necessary in order to secure or protect the rights of use and occupancy and the
other rights hereunder.

     SECTION 2.5    Issuer's Liabilities Limited

     This Lease Agreement is entered into under and pursuant to the provisions
of the Enabling Law.  No provision hereof shall be construed to impose a charge
against the general credit of the Issuer or any personal or pecuniary liability
upon the Issuer except to apply the proceeds to be derived from the sale of the
Bonds and the revenues and receipts to be derived from any leasing or sale of
the Project or any part thereof as provided herein and in the Indenture.

                                       8
<PAGE>

     SECTION 2.6    Certain Prior Agreements Canceled

     This Lease Agreement shall completely and fully supersede all other prior
agreements, both written and oral, between the Issuer and the User relating to
the acquisition and construction of the Series A Facilities specifically
excepting however the Abatement Agreement and any other agreements pursuant
thereto, and any deed or other instrument by which the Project, any part
thereof, or any interest therein has been transferred and conveyed to the
Issuer.  Neither the Issuer nor the User shall hereafter have any rights under
such prior agreements but shall look solely to this Lease Agreement for
definition and determination of all of their respective rights, liabilities and
responsibilities relating to the Project.

                                   ARTICLE 3

                               Demising Clauses

     The Issuer, for and in consideration of the rents, covenants and agreements
hereinafter reserved, mentioned and contained on the part of the User to be
paid, kept and performed, does hereby assign, demise and lease to the User, and
the User does hereby accept, lease, take and hire from the Issuer the following
property:

                                      I.

          The real property described on Exhibit A hereto and all other real
     property, or interests therein, acquired by the Issuer with proceeds of the
     Bonds or with funds advanced or paid pursuant to this Lease Agreement (the
     "Project Site"), together with all easements, permits, licenses, rights-of-
     way, contracts, leases, tenements, hereditaments, appurtenances, rights,
     privileges and immunities pertaining or applicable to said real property.

                                      II.

          All buildings, structures, fixtures and other improvements now or
     hereafter constructed or situated on the Project Site, including without
     limitation all buildings, structures, fixtures and other improvements
     constructed on the Project Site with proceeds of the Bonds or with funds
     advanced or paid pursuant to this Lease Agreement (the "Improvements").

                                     III.

          The machinery, equipment, personal property and fixtures described on
     Exhibit B attached hereto and all other machinery, equipment, personal
     property and fixtures acquired with the proceeds of the Bonds or with funds
     advanced or paid pursuant to this Lease Agreement, together with all
     personal property and fixtures acquired in substitution therefor or as a.
     renewal or replacement thereof, and the proceeds thereof (the "Equipment").

                                       9
<PAGE>

SUBJECT, HOWEVER, to Permitted Encumbrances.

                                   ARTICLE 4

                            The Series A Facilities

     SECTION 4.1    Acquisition of Series A Facilities

     (a)  Simultaneously with the issuance of the Series A Bonds, the Issuer
will acquire the Project Site.

     (b)  Simultaneously with the delivery of this Lease Agreement the Issuer
shall cause the proceeds of the Series A Bonds to be deposited in the Series A
Construction Fund. The Issuer shall cause the proceeds to be advanced to the
User by withdrawal from the Series A Construction Fund, in accordance with the
requirements of the Indenture, for the payment of Series A Facilities Costs at
such times and in such amounts as shall be directed by the User. The User is
hereby irrevocably appointed as agent for the Issuer to issue and execute, for
and in the name and behalf of the Issuer and without any approval of any
officer, employee or other agent thereof, a payment request or requisition on
the Series A Construction Fund, and to direct the expenditure of funds on
deposit therein to pay Series A Facilities Costs. The proceeds of the Series A
Bonds shall be used solely for the payment of Series A Facilities Costs as
provided in the Indenture.

     (c)  The User will acquire and construct the Series A Facilities with all
reasonable dispatch and due diligence and will cause the Series A Facilities (1)
to constitute a "project" under the Enabling Law and (2) to be placed in service
as promptly as practicable. The Issuer will not execute any contract or purchase
orders for the Series A Facilities without the prior written consent of the
User.

     (d)  Compliance with laws and regulations necessary to realize any sales
and use tax exemption with respect to the acquisition, construction and
equipping of the Series A Facilities shall be the sole responsibility of the
User and the Issuer does not assume any responsibility or give any assurance
with respect to any possible exemption from sales and use taxes.

     (e)  The User hereby covenants and agrees (1) to contribute the amount of
$400,000 for the payment of Series A Facilities Costs and (2) in the event the
proceeds derived from the sale of the Bonds are insufficient to pay in full all
Series A Facilities Costs, to complete the acquisition and construction of the
Series A Facilities at its own expense and pay any such deficiency and save the
Issuer whole and harmless from any obligation to pay such deficiency, except as
the Issuer and the User may otherwise agree in writing. The User shall not, by
reason of the said contribution of $400,000 or the payment of such deficiency
from its own funds, be entitled to any diminution in Rent.

                                       10
<PAGE>

     (f)  The Issuer hereby covenants and agrees to enforce the Contribution
Agreement and the Purchase Contract and cause all funds received thereunder to
be applied for the Series A Facilities in accordance with the provisions of the
Indenture.

     SECTION 4.2    No Warranty by Issuer

     THE USER AGREES THAT THE ISSUER MAKES NO WARRANTY, EITHER EXPRESS OR
IMPLIED, NOR OFFERS ANY ASSURANCES, THAT THE SERIES A FACILITIES WILL BE
SUITABLE FOR THE PURPOSES OR NEEDS OF THE USER OR THAT THE PROCEEDS DERIVED FROM
THE SALE OF THE SERIES A BONDS WILL BE SUFFICIENT TO PAY IN FULL ALL SERIES A
FACILITIES COSTS.

     SECTION 4.3    Remedies Against Vendors. Contractors. Subcontractors, and
Sureties

     In the event of default of any vendor, contractor, sub-contractor or surety
therefor, under any contract or purchase order for acquisition, construction or
installation of the Series A Facilities, the User may, in its own name or in the
name of the Issuer, prosecute or defend any action or proceeding or take any
other action involving any such vendor, contractor, subcontractor or surety
which the User deems reasonably necessary, and in such event the Issuer will
cooperate fully with the User and will take all action necessary to effect the
substitution of the User for the Issuer in any such action or proceeding. Any
amounts recovered by way of damages, refunds, adjustments or otherwise in
connection with the foregoing shall be paid into the Series A Construction Fund
and applied as provided for funds on deposit therein.

     SECTION 4.4    Completion of the Series A Facilities

     (a)  The completion of the Series A Facilities shall be evidenced to the
Agent by a certificate signed by an Authorized User Representative stating that
(i) construction and installation of the buildings and structures constituting a
part of the Series A Facilities has been completed in accordance with the plans
and specifications approved by the User, (ii) all personal property and fixtures
constituting a part of the Series A Facilities have been acquired and installed
in accordance with the User's instructions, (iii) all labor, services, materials
and supplies in connection with such construction, acquisition and installation
have been paid for, and (iv) all facilities necessary in connection with the
Series A Facilities have been constructed, acquired and installed and all costs
and expenses incurred in connection therewith have been paid. Notwithstanding
the foregoing, such certificate shall state that it is given without prejudice
to any rights against any vendor, contractor, subcontractor or other person not
a party to this Lease Agreement which exist at the date of such certificate or
which may subsequently come into being.

     (b)  After the delivery of the aforesaid certificate to the Agent, any
moneys then remaining in the Series A Construction Fund shall be applied as
provided in the Indenture.

                                       11
<PAGE>

                                   ARTICLE 5

                       Lease Term; Payment and Indemnity
                    Provisions: Substitute Letter of Credit

     SECTION 5.1    Initial Lease Term

     The term of this Lease Agreement shall begin on the date of the delivery of
this Lease Agreement and, subject to the provisions of this Lease Agreement and
to extension and renewal as provided in Section 11.02 hereof, shall continue
until midnight of March 15, 2000.

     SECTION 5.2    Rental and Payment Provisions

     (a)  Basic Rent. On or before each Bond Payment Date, the User shall pay to
          ----------
the Agent, in immediately available funds for the account of the Issuer, an
amount equal to the principal of, premium (if any) and interest on the Bonds due
and payable on such Bond Payment Date ("Basic Rent"); provided, however, that on
each regularly scheduled Bond Payment Date (which shall not include any Bond
Payment Date with respect to redemption or acceleration of the Bonds) which
occurs during the period beginning on the date of delivery hereof and ending on
and including March 15, 1999 and on which the amount of $12,800 is due and
payable as principal of and interest on the Series A Bonds, the User shall not
be required to pay more than $11,420 as Basic Rent for each such Bond Payment
Date with respect to the Series A Bonds.

     (b)  Additional Rent. The User shall pay to the Agent the reasonable fees,
          ---------------
,charges and expenses of the Agent for necessary services rendered and expenses
incurred under the Indenture ("Additional Rent"); provided, that the User may,
                               ---------------
without creating a default hereunder, contest in good faith the necessity for
any such services and expenses and the reasonableness of any such fees, charges
or expenses.

     (c)  Late Payment Charge. The User hereby agrees to pay a late charge on
          -------------------
any installment of principal of and, to the extent legally enforceable, interest
on the Series A Bonds which installment shall not be paid by the twenty-fifth
day of the month in which such installment is due and payable, in an amount
equal to five percent (5 %) of such installment.

     (d)  Net Lease. The User acknowledges and agrees that it is the intention
          ---------
hereof that this Lease Agreement be a net lease and that until the Bonds are
fully paid, except as may be otherwise specifically provided for a specific
period in Section 5.02(a) hereof, Basic Rent shall be in such amounts and shall
be due at such times as shall be required to pay the installments of principal
of and interest on the Bonds as the same mature and become due and payable. This
Lease Agreement shall be construed to effectuate such intent.

                                       12
<PAGE>

     (e)  Payments Under Letter of Credit. The User hereby authorizes and
          -------------------------------
directs the Agent to draw funds available under the Letter of Credit in
accordance with the terms of Section 8.01(c) and Section 11.02(2) of the
Indenture. The User shall receive a credit against Basic Rent payable hereunder
for the corresponding amount drawn by the Agent under the Letter of Credit and
applied to the payment of principal of and interest on the Bonds.

     (f)  Partial Prepayment Upon Nonrenewal of Lease Term. In the event the
          ------------------------------------------------
User elects not to extend or renew the term of this Lease Agreement in
accordance with the terms hereof on or before June 15, 2000, the User will pay
to the Agent for deposit in the Bond Fund for the account of the Issuer on or
before such date the amount of $150,000 in immediately available funds and the
obligation of the User hereunder shall survive any termination of this Lease
Agreement prior to such date.

     SECTION 5.3    Advances by Issuer or Agent

     In the event that the User fails to perform or observe any covenants in
this Lease Agreement the Issuer or the Agent, after first notifying the User of
any such failure, may (but shall not be obligated to) make advances to effect
performance or observance of such covenants on behalf of the User. All amounts
so advanced therefor by the Issuer or the Agent, together with interest thereon
from the date of advancement at the Base Rate plus two percent (2%) per annum or
the maximum rate of interest allowed by law, whichever is less, shall become an
additional obligation payable by the User to the Issuer or to the Agent upon
demand and secured hereby.

     SECTION 5.4    Indemnity of Issuer. Agent and Holders

     (a)  The User agrees to pay, and to indemnify and hold the Issuer
(including without limitation all officers, agents, representatives and members
of the board of directors thereof), the Agent and each of the Holders harmless
against, any and all liabilities, losses, damages, claims or actions (including
all reasonable attorneys' fees and expenses of the Issuer or the Agent), of any
nature whatsoever incurred by the Issuer, the Agent and each of the Holders
without gross negligence thereby arising from or in connection with the
ownership of any interest in the Project or the leasing thereof and granting of
security interests therein, or performance or observance of any covenant or
condition on the part thereof to be observed or performed under any of the
Financing Documents, including without limitation: (1) any injury to, or the
death of, any person or any damage to property at the Project, or in any manner
growing out of or connected with the use, nonuse, condition or occupation of the
Project or any part thereof, (2) any damage, injury, loss or destruction of the
Project, (3) any other act or event occurring upon, or affecting, any part of
the Project, (4) violation by the User of any contract, agreement or restriction
affecting the Project or the use thereof or of any law, ordinance or regulation
affecting the Project or any part thereof or the ownership, occupancy or use
thereof, (5) the presence of any pollutants, contaminants, toxic or hazardous
wastes, and/or other substances regulated by law or which might create a hazard
to health and safety, now or hereafter on, under or included in the Project
Site, and any clean up or other

                                       13
<PAGE>

remedial action with respect to any thereof, and the violation of any law, rule,
regulation, order, ruling, notice or decree of any Governmental Authority
relating to pollution or the protection of human health or the environment, and
(6) liabilities, losses, damages, claims or actions arising out of the offer and
sale of the Bonds or a subsequent sale of the Bonds or any interest therein,
unless the same resulted from a representation or warranty of the Issuer in this
Lease Agreement or any certificate delivered by the Issuer pursuant thereto
being false or misleading in a material respect and such representation or
warranty was not based upon a similar representation or warranty of the User
furnished to the Issuer in connection therewith.

     (b)  The User hereby agrees that (1) the Issuer shall not incur any
liability to the User, and (2) the Issuer shall be indemnified against all
liabilities, with respect to any action taken by the Issuer in exercising or
refraining from asserting, maintaining or exercising any right, privilege or
power of the Issuer under the Indenture if the Issuer is acting in good faith
and without gross negligence or in reliance upon a written request by the User.

     (c)  The User further agrees to indemnify the Agent for, and to hold it
harmless against, any loss, liability or expense incurred without negligence or
bad faith on its part, arising out of or in connection with the acceptance or
observance or performance of the duties, rights, and powers of the Agent under
the Indenture, including the costs and expenses of defending itself against any
claim or liability in connection with the exercise or performance of any of its
powers and duties under the Indenture.

     (d)  The covenants of indemnity by the User contained in this Section with
respect to any event or occurrence arising on or before termination of this
Lease Agreement shall survive termination of this Lease Agreement and shall
remain in full force and effect until commencement of an action based on such
event or occurrence shall be prohibited by law.

     SECTION 5.5    Payment of Taxes and Other Governmental Charges

     (a)  The User will pay, as the same respectively become due, except as
otherwise provided in the Abatement Agreement, (1) all taxes and governmental
charges of any kind whatsoever that may at any time be lawfully assessed or
levied against or with respect to the Project or any other property installed or
brought by the User on the Project Site, including without limitation any taxes
levied on or with respect to the revenues, income or profits of the Issuer from
the Project and any other taxes levied upon or with respect to the Project
which, if not paid, will become a lien on the Project prior to or on a parity
with the lien of the Indenture or a charge on the revenues and receipts from the
Project prior to or on a parity with the charge thereon and pledge or assignment
thereof created and made in the Indenture and including any ad valorem taxes
assessed upon the leasehold interest in the Project, and (2) all assessments and
charges lawfully made by any governmental body for public improvements that may
be secured by a lien on the Project, provided, that with respect to special
assessments or other governmental charges that may lawfully be paid in
installments over a period of years, the User shall be obligated to pay only
such installments as are required to be paid during the Lease Term.

                                       14
<PAGE>

     (b)  The User may, at the expense thereof and in the name and behalf
thereof or in the name and behalf of the Issuer, in good faith contest any such
taxes, assessments and other charges and, in the event of any such contest, may
permit the taxes, assessments or other charges so contested to remain unpaid
during the period of such contest and any appeal therefrom, provided that during
such period enforcement of such contested items shall be effectively stayed. The
Issuer, at the expense of the User, will cooperate fully with the User in any
such contest.

     SECTION 5.6    Nature of Obligations of User

     (a)  The obligations of the User to make all payments required under
Sections 5.02, 5.03, 5.04, 5.05 and the other provisions of this Lease Agreement
and to perform and observe the other agreements and covenants on the part
thereof herein contained shall be absolute and unconditional, irrespective of
any rights of setoff, recoupment or counterclaim the User may otherwise have
against the Issuer. The User will not suspend or discontinue any such payment or
fail to perform and observe any other agreements and covenants contained herein
or terminate this Lease Agreement for any cause whatsoever, including, without
limiting the generality of the foregoing, failure of the Issuer to complete the
Project, any acts or circumstances that may constitute an eviction or
constructive eviction, failure of consideration or commercial frustration of
purpose, the unenforceability or the invalidity of, or of any provision
contained in, this Lease Agreement or any of the other Financing Documents, or
any damage to or destruction of the Project or any part thereof, or the taking
by eminent domain of title to or the right to temporary use of all or any part
of the Project, or any change in the tax or other laws or administrative
rulings, actions or regulations of the United States of America or of the State
or any political or taxing subdivision of either thereof, or any failure of the
Issuer to perform and observe any agreement or covenant, whether express or
implied, or any duty, liability or obligation arising out of or in connection
with this Lease Agreement.

     (b)  The User shall not be deemed to be a party to the Indenture or the
Bonds and any reference in this Lease Agreement to the Indenture and the Bonds
shall not impose any liability or obligation upon the User other than the
specific obligations and liabilities undertaken in this Lease Agreement.

     SECTION 5.7    Substitute Letter of Credit

     (a)  The User may at any time deliver a written extension of an existing
Letter of Credit, or a Substitute Letter of Credit in substitution of an
existing Letter of Credit, provided that:

          (1)  such Substitute Letter of Credit complies with the applicable
     requirements of this Section, and

          (2)  simultaneously with the delivery of such Substitute Letter of
     Credit the User delivers to the Agent an opinion of counsel for the issuer
     of the Substitute Letter of Credit to the effect that such Substitute
     Letter of Credit is enforceable against such issuer, subject to such
     qualifications as the Agent shall approve, and

                                       15
<PAGE>

          (3)  if such written extension or Substitute Letter of Credit are not
     delivered to the Agent on or before the first day of the calendar month in
     which the Letter of Credit Termination Date occurs, the Bonds shall be
     subject to mandatory redemption as provided therein.

     (b)  Each Substitute Letter of Credit delivered pursuant hereto must

          (1)  be in substantially the same form and tenor as the then existing
     Letter of Credit and provide for the payment of interest on the Bonds at
     the then effective interest rate thereof for the same period as the then
     existing Letter of Credit, and

          (2)  have a Letter of Credit Termination Date that is (i) the same
     calendar day as the expiration date of the then existing Letter of Credit
     and (ii) not earlier than one year after its effective date, and

          (3)  be issued by an issuer having a credit rating comparable to or
     better than that of the issuer of the then existing Letter of Credit.

                                   ARTICLE 6

               Maintenance. Alterations Replacements: Insurance

     SECTION 6.1    Maintenance, Repairs, Alterations, Use in Connection with
other Facilities; Easements Granted by Issuer

     (a)  The User will, at the expense thereof, (1) keep the Project in as
reasonably safe condition as operations permit, (2) maintain the Project in good
repair, working order and condition, ordinary wear and tear excepted, and (3)
pay all gas, electric, water, sewer and other charges for the operation,
maintenance, use and upkeep of the Project.

     (b)  The User will not permit any mechanics' or other liens to stand
against the Project or the Project Site for labor or material furnished it. The
User may, however, in good faith contest any such mechanics' or other liens and
in such event may permit any such liens to remain unsatisfied and undischarged
during the period of such contest and any appeal therefrom unless by such action
the lien of the Indenture on the Project or any part thereof, or the Project or
any part thereof shall be subject to loss or forfeiture, in either of which
events such mechanics' or other liens shall be promptly satisfied.

                                       16
<PAGE>

     (c)  The User may, at the expense thereof or may permit any sublessee to,
at such sublessee's expense, make structural changes, additions, improvements,
alterations or replacements to the Improvements that it or such sublessee may
deem desirable, provided that such additions, improvements, alterations or
replacements will not adversely affect the utility of the Project or
substantially reduce its value and will not change the character of the Project
as a "project" under the Enabling Law. All such changes, additions,
improvements, alterations and replacements whether made by the User or the
Issuer shall become a part of the Project and shall be covered by this Lease
Agreement and the Indenture.

     (d)  The User may connect or "tie-in" walls of the Improvements and utility
and other facilities located on the Project Site to other structures and
facilities owned or leased by the User on real property adjacent to the Project
Site. The User may use as a party wall any wall of the Improvements which is on
or contiguous to the boundary line of real property owned or leased by the User,
and in the event of such use, each party hereto hereby grants to the other a
ten-foot easement adjacent to any such party wall for the purpose of inspection,
maintenance, repair and replacement thereof and the tying in of new
construction. If the User utilize any wall of the Improvements as a party wall
for the purpose of tying in new construction that will be utilized under common
control with the with the Project, the User may also remove any non-loadbearing
wall panel in the party wall; provided, however, if the adjacent property ceases
to be operated under common control with the Project, the User will at the
expense thereof, install wall panels similar in quality to those that have been
removed. Prior to the exercise of any one or more of the rights granted by this
subsection (d), the User shall furnish the Issuer and Agent a certificate of an
Independent Engineer or an Independent Architect that the operation of the
Project will not be adversely affected by the exercise of such rights.

     (e)  The Issuer will, upon request of the User, grant such utility and
other similar easements over, across or under the Project Site as shall be
necessary or convenient for the furnishing of utility and other similar services
to the Project or to real property adjacent to or near the Project Site and
owned or leased by the User; provided that such easements shall not adversely
affect the operation of the facilities forming a part of the Project.

     SECTION 6.2    Substitution and Replacement for Equipment

     If the User in the sole discretion thereof determines that any item of
Equipment has become inadequate, obsolete, wornout, unsuitable, undesirable or
unnecessary in the operation of the Project, the User may remove such Equipment
from the Project Site and (on behalf of the Issuer) sell, trade in, exchange or
otherwise dispose of it without any responsibility or accountability to the
Issuer or the Agent therefor, provided that the User shall either:

                                       17
<PAGE>

     (a)  substitute and install in or on the Project Site other personal
property or fixtures which shall (1) have equal or greater utility (but not
necessarily the same value or function) in the operation of the Project, (2) be
free of all liens and encumbrances except for purchase money liens or
encumbrances reasonably acceptable to the Agent, (3) be the sole property of the
Issuer, subject to the demise hereof and to the lien of the Indenture, (4) be
held by the User on the same terms and conditions as the items originally
comprising the Equipment, and (5) not impair the Project or change the nature of
the Project as a "project" under the Enabling Law; or

     (b)  forthwith upon such sale deposit in the Bond Fund the price or amount
obtained upon the sale of such Equipment, which amount shall be applied to the
redemption of the principal of the applicable series of Bonds on the earliest
practicable installment payment date for which the required notice can be given.

     SECTION 6.3    Installation By User of Machinery and Equipment

     The User may, at the expense thereof, or may permit any sublessee of the
Project to, at its own expense, install in the Improvements or on the Project
Site any personal property or fixtures which will facilitate the operation of
the Project.  Any such personal property or fixtures which is so installed and
does not constitute a substitution or replacement for the Equipment pursuant to
Section 6.02 hereof shall be and remain the property of the User or such
sublessee and may be removed by the same at any time and from time to time while
there is no default under the terms of this Lease Agreement; provided, however,
that any damage to the Project occasioned by such removal shall be repaired by
the party removing such property at its own expense.

     SECTION 6.4    Insurance Required

     (a)  The User will take out and continuously maintain in effect the
following insurance with respect to the Project, paying as the same become due
all premiums with respect thereto:

          (1)  Insurance to the extent of the full replacement cost of the
     Project (but not less than the principal amount of Bonds Outstanding at any
     time plus the maximum Contribution Amount) against loss or damage by fire,
     tornado, windstorm, and other casualties and hazards with uniform standard
     extended coverage endorsement limited only as may be provided in the
     standard form of extended coverage endorsement at the time in use in the
     State.

          (2)  Insurance against liability for bodily injury to or death of
     persons and for damage to or loss of property occurring on or about the
     Project or in any way related to the condition or operation of the Project,
     in the minimum amounts of $3,000,000 combined single limit for any one
     occurrence and $3,000,000 in the aggregate for any one year.

                                       18
<PAGE>

          (3)  Title insurance insuring the first mortgage in the Project Site
     created by the Indenture subject to no liens and encumbrances other than
     such encumbrances as shall be approved by the Agent. Any proceeds of such
     title insurance shall be deposited with the Agent and shall be applied
     (together with the moneys in the Bond Fund available for such purpose) to
     the redemption of the Bonds on the next ensuing installment payment dates
     for which the required notice may be given.

          (4)  Flood insurance under the national flood insurance program
     established by the Flood Disaster Protection Act of 1973, as at any time
     amended, at all times while the Project is eligible under such program, in
     a amount at least equal to the unpaid principal amount of the Bonds or to
     the maximum limit of coverage made available with respect to the Project
     under said Act, whichever is less.

          (5)  During the period of acquisition and construction of any part of
     the Project, builders' risk insurance in the amount of the full replacement
     value of the Project against all losses which are normally covered by such
     builders' risk insurance. The User may satisfy said obligations with
     respect to the builder's risk insurance by causing such insurance to be
     carried by a construction contractor for any part of the Project.

          (6)  Use and occupancy insurance (or business interruption or risk
     insurance) covering suspension or interruption of the operations at the
     Project in whole or in part, with such exemptions as are customarily
     imposed by insurers, covering a period of suspension or interruption of at
     least six months with a minimum limit in an amount equal to 100 % of the
     maximum amount to be paid as Rent and other payments under Section 5.02
     hereof during any such six month period.

     (b)  All policies evidencing the insurance required by the terms of this
Section shall be taken out and maintained in generally recognized responsible
insurance companies, qualified under the laws of the State to assume the
respective risks undertaken, and shall name as insureds the Issuer, the Agent
and the User (as their respective interests shall appear) and shall contain
standard mortgage clauses providing for all losses thereunder in excess of
$50,000 to be paid jointly to the Agent and the User; provided that all losses
(including those in excess of $50,000) may be adjusted by the User, subject, in
the case of any single loss in excess of $50,000, to the approval of the Agent.
The User may insure under a blanket policy or policies.

     (c)  Each insurance policy required to be carried by this Section shall
contain, to the extent obtainable, an agreement by the insurer that (1) the User
may not, without the consent of the Agent, cancel such insurance or sell, assign
or dispose of any interest in such insurance, such policy, or any proceeds
thereof, (2) such insurer will notify the Issuer and the Agent if any premium
shall not be paid when due or any such policy shall not be renewed prior to the
expiration thereof, and (3) such insurer shall not materially amend or cancel
any such policy except on 30 days' prior written notice to the Issuer and the
Agent.

                                       19
<PAGE>

     (d)  All policies evidencing the insurance required to be carried by this
Section shall be deposited with the Agent; provided, however, that in lieu
thereof the User may deposit with the Agent a certificate or certificates of the
respective insurers attesting the fact that such insurance is in force and
effect. Prior to the expiration of any such policy, the User will furnish to the
Agent evidence reasonably satisfactory to the Agent that such policy has been
renewed or replaced by another policy or that there is no necessity therefor
under this Lease Agreement.

                                   ARTICLE 7

                         Provisions Respecting Damage,
                         Destruction and Condemnation

     SECTION 7.1    Damage and Destruction

     (a)  If the Project or Project Site is damaged to such extent that the
claim for loss is not greater than $50,000, the User will continue to pay Rent
and all other payments required to be paid hereunder and the User will promptly
repair, rebuild or restore the property damaged and will apply for such purpose
so much as may be necessary of Net Proceeds of insurance resulting from claims
for such losses, as well as any additional moneys of the User necessary
therefor. If the cost of such repairs, rebuilding and restoration is less than
the amount of Net Proceeds of the insurance referable thereto, the User may
retain the amount by which such insurance proceeds exceed said total cost.

     (b)  If the Project or the Project Site is destroyed or is damaged to such
extent that the claim for loss is in excess of $50,000, the User will continue
to pay Rent and all other payments required to be paid hereunder and will
promptly give written notice of such damage and destruction to the Agent and the
Issuer. All Net Proceeds of insurance resulting from claims for such losses
shall be paid to the Agent, whereupon (1) the User will proceed promptly to
repair, rebuild or restore the property damaged or destroyed to substantially
the same condition in which it existed prior to the event causing such damage or
destruction, with such changes, alterations and modifications (including the
substitution and addition of other property) as may be desired by the User and
as will not impair the Project or its character as a "project" under the
Enabling law, and (2) the Issuer will cause the Agent to pay the costs of such
repair, rebuilding or restoration, either on completion thereof, or as the work
progresses, upon appropriate verification of costs. The balance, if any, of Net
Proceeds shall be applied to the redemption of Bonds in accordance with the
terms thereof in the same manner and order specified in Section 11.07 of the
Indenture for moneys collected or held by the Agent, and then to the payment of
the Contribution Amount, or, if the Bonds and the Contribution Amount are fully
paid, shall be paid to the User.

     (c)  In the event the User elects to repair, rebuild, or restore the
Project and the Net Proceeds of insurance are not sufficient to pay in full the
costs of repairing, rebuilding and restoring the Project as provided in this
Section, the User will nonetheless complete the work thereof and will pay that
portion of the costs thereof in excess of the amount of said Net Proceeds. The
User shall not by reason of the payment of such excess costs be entitled to any
reimbursement from the Issuer or any abatement or diminution of the Rent payable
hereunder.

                                       20
<PAGE>

     (d)  Anything in this Section to the contrary notwithstanding, if, upon
such damage or destruction of the Project (regardless of whether the loss
resulting therefrom is greater than $50,000 or not) the User elects not to
repair, rebuild or restore the Project and duly exercises an option to purchase
the Project in accordance with Section 11.03 hereof, then neither the User nor
the Issuer shall be required to repair, rebuild or restore the property damaged
or destroyed, and any Net Proceeds referable to such damage or destruction shall
be paid to the Agent and applied to payment of the purchase price for the
Project as provided in Section 11.03 hereof and the excess thereafter remaining
(if any) shall be paid to the User.

     SECTION 7.2    Condemnation

     (a)  If title to, or the temporary use of, the Project or any part thereof
shall be taken under the exercise of the power of eminent domain, the User shall
be obligated to continue to pay Rent and all other payments required to be paid
under this Lease Agreement, and the entire Net Proceeds referable to such
taking, including the amounts awarded to the Issuer and the Agent and the amount
awarded to the User for the taking of all or any part of the leasehold estate of
the User in the Project, shall be paid to the Agent and applied in one or more
of the following ways as shall be directed in writing by the User:

          (1)  To the restoration of the remaining improvements located on the
     Project Site to substantially the same condition in which they existed
     prior to the exercise of the power of eminent domain (the same to be
     subject to this Lease Agreement and the Indenture and be covered thereby);
     or

          (2)  To the acquisition, by construction or otherwise, of other
     improvements suitable for the operations of the Project (the same to be
     subject to this Lease Agreement and the Indenture and be covered thereby),
     provided such acquisition shall become a part of the Project and shall not
     result in the creation or establishment of any liens or encumbrances on the
     Project prior to the lien of the Indenture.

     (b)  In the event the User elects to replace or restore the Project as
provided in Section 7.02(a) and Net Proceeds are not sufficient to fully provide
for the foregoing, the User will nonetheless complete the work thereof and will
pay that portion of the costs thereof in excess of the amount of the Net
Proceeds. The User shall not by reason of the payment of such costs be entitled
to any reimbursement from the Issuer or any abatement or diminution of the Rent
payable hereunder.

     (c)  Any balance of such Net Proceeds shall be applied to the redemption of
Bonds in accordance with the terms thereof in the same manner and order
specified in Section 11.07 of the Indenture for moneys collected or held by the
Agent, and then to the payment of the Contribution Amount, or, if the Bonds and
the Contribution Amount are fully paid, shall be paid to the User.

                                       21
<PAGE>

     (d)  The Issuer shall cooperate fully with the User in the handling and
conduct of any prospective or pending condemnation proceeding with respect to
the Project or any part thereof and will, to the extent it may lawfully do so,
permit the User to litigate in any such proceeding in the name and behalf of the
Issuer. In no event will the Issuer settle, or consent to the settlement of, any
prospective or pending condemnation proceeding without the prior written consent
of the User.

     (e)  Anything in this Section to the contrary notwithstanding, if, upon
such taking of the Project, the User elects not to restore or replace the
Project as provided herein and duly exercises an option to purchase the Project
in accordance with Section 11.03 hereof, then any Net Proceeds referable to such
taking shall be paid to the Agent and applied to payment of the purchase price
for the Project as provided in Section 11.03 hereof, and the excess thereafter
remaining (if any) shall be paid to the User.

     (f)  The User shall be entitled to the Net Proceeds of any award or portion
thereof made for damage to or taking of any property of the User not included in
the Project.

                                       22
<PAGE>

                                   ARTICLE 8

                       Provisions Relating to Conveyance
                    of the Project, the Agent and the Bonds

     SECTION 8.1    Assignment and Subleasing of Project by User

     The User may assign this Lease Agreement and the leasehold interest created
hereby and may sublet the Project or any part thereof, subject, however, to the
following conditions:

     (a)  In the event of any such assignment or subleasing the User shall
continue to remain liable for the payment of all Rent herein provided to be paid
and for the performance and observance of all agreements and covenants on the
part of the User herein provided to be performed and observed unless the User
shall be released from such liability by written instrument executed by the
Agent, the Holders and the Issuer.

     (b)  The User will not assign the leasehold interest created hereby nor
sublease the Project or any part thereof to any person whatsoever unless the
operations of such assignee or sublessee are consistent with, and in furtherance
of, the purpose of the Enabling Law and the Abatement Agreement.

     (c)  The User shall furnish to the Issuer and the Agent a true and complete
copy of each such assignment or sublease promptly after the delivery thereof and
shall assign the rights of the User thereunder to the Issuer and the Agent as
additional security for the obligations of the User hereunder.

     (d)  The User shall not, without the prior written consent of the Holders
of the Bonds Outstanding, mortgage or assign the leasehold interest created
hereby as security for money paid to or for the benefit of the User.

     SECTION 8.2    Mortgage of the Project and Assignment of Lease Agreement
and Rents by the Issuer; Restrictions on Amendments of Lease Agreement and
Indenture

     (a)  The Issuer has, simultaneously with the delivery of this Lease
Agreement, mortgaged the Project to the Agent and assigned its interest in and
pledged any money receivable under this Lease Agreement (other than certain
rights to indemnification and reimbursement) to the Agent as security for
payment of the Bonds and the User hereby consents to such mortgage, assignment
and pledge. The Issuer has in the Indenture obligated itself to follow the
instructions of the Agent in the election or pursuit of any remedies herein
vested in it. The Agent shall have all rights and remedies herein accorded to
the Issuer and any reference herein to the Issuer shall be deemed, with the
necessary changes in detail, to include the Agent, and the Agent and the Holders
are deemed to be third party beneficiaries of the covenants, agreements and
representations of the User herein contained.

                                       23
<PAGE>

     (b)  The Issuer and the User shall have no power to modify, alter, amend or
terminate this Lease Agreement without the prior written consent of the Agent
and the Holders. The Issuer will not amend the Indenture or any indenture
supplemental thereto without the prior written consent of the User.

     SECTION 8.3    Restrictions on Mortgage or Sale of Project by Issuer

     Except as provided in the Indenture, the Issuer will not (a) mortgage,
sell, assign, transfer, convey or grant a security interest in the Project or
any part thereof, or (b) merge or consolidate with, or transfer its assets to,
any person.

     SECTION 8.4    Redemption of Bonds

     (a)  Upon the occurrence of any event which gives rise to any mandatory
redemption of Bonds, the Issuer will redeem any or all of the same in accordance
with the respective provisions thereof and the Indenture.

     (b)  If the Bonds are subject to optional redemption the Issuer will, but
only upon the written request of the User, redeem the same in accordance with
the respective provisions thereof and the Indenture.

     (c)  On the redemption date with respect to the Bonds the User shall pay to
the Agent for the account of the Issuer the applicable redemption price with
respect to such Bonds.

                                   ARTICLE 9

                             Covenants of the User

     The User hereby covenants and agrees:

     (a)  The User will not do or permit anything to be done at the Project that
will affect, impair or contravene any policies of insurance that may be carried
on the Project or any part thereof.

     (b)  The User will, subject to the provisions of any agreement or contract
of the User with any person and any applicable rule or regulation thereof
pertaining thereto, permit the Issuer, the Agent, the Holders and their
respective duly authorized agents at all reasonable times to enter upon, examine
and inspect the Project; and in the event of default as hereinafter provided,
the User will permit a public accountant or firm of public accountants
designated by the Agent or the Holders to have access to, inspect, examine and
make copies of the books and records, accounts and data of the User respecting
the Project and the Bonds.

                                       24
<PAGE>

     (c)  The User will maintain proper books of record and account, in which
full and correct entries will be made, in accordance with generally accepted
accounting principles, of all business and affairs with respect to the Project.
The User shall furnish to the Agent with reasonable promptness unaudited
financial operating statements with respect to the User on an annual basis and
such other financial statements and information with respect to the User as
shall be produced in the ordinary course of business of the User and the
Affiliates thereof.

     (d)  The User will comply with all valid laws, ordinances, regulations and
requirements of all Governmental Authorities which are applicable to the User
and the Project.

     (e)  The User will duly pay and discharge all taxes, assessments and other
governmental charges and liens lawfully imposed on the User and upon the
properties of the User, provided, however, the User will not be required to pay
any taxes, assessments or other governmental charges so long as in good faith it
shall contest the validity thereof by appropriate legal proceedings, the User
has given notice of such contest to the Agent, the User has established adequate
reserves therefor, and no part of the Project shall, in the opinion of the
Agent, be subject to loss or forfeiture, and provided further the User shall not
be required to pay any (i) liens, subordinate to the Indenture, arising by
operation of law (such as mechanics', workmen's, materialmen's, carriers and
other liens) securing obligations which are not yet overdue or which are being
contested in good faith and by appropriate proceedings and for which adequate
reserves have been established by the User and (ii) any judgments, subordinate
to the Indenture, not in excess of $100,000, the execution of which has been
stayed, and which are being contested in good faith by appropriate appellate
proceedings, and for which adequate reserves have been established by the User.

     (f)  Except as permitted by this Lease Agreement the User will maintain and
preserve its existence as a corporation under the laws of the State of Delaware
and will not voluntarily dissolve without first discharging its obligations
under this Lease Agreement (except as permitted herein).

     (g)  (1) Except as provided in subparagraph (g)(4) below, the User will not
transfer or dispose of all or substantially all of its assets (either in a
single transaction or in a series of related transactions), and will not merge
or consolidate with any other corporation nor permit one or more corporations to
consolidate with or merge into it unless the following conditions and provisions
are complied with: (i) that such surviving, successor or transferee corporation
is a corporation organized and existing under the laws of one of the states of
the United States of America and is duly qualified to do business in the State
of Alabama, (ii) that the assignee corporation or the corporation resulting from
or surviving such merger or consolidation shall expressly assume and agree in
writing delivered to the Issuer and the Agent and the Holders to pay and perform
all of the User's obligations under the Financing Documents and (iii) in
connection with any such consolidation or merger, there shall be filed with the
Issuer and the Agent and the Holders a letter or certificate by a firm of
Independent certified public accountants acceptable to the Agent and the Holders
certifying that upon the consummation of such consolidation or merger the
corporation resulting from or surviving such consolidation or merger will have
an excess of assets over liabilities at least as great as the User would have
had if such consolidation or merger had not occurred; or (iv) in connection with
any transfer or other disposition of assets there shall be filed with the Issuer
and the Agent and the

                                       25
<PAGE>

Holders a letter or certificate by a firm of Independent certified public
accountants acceptable to the Agent and the Holders certifying that upon the
consummation of such transfer the corporation to which such transfer is made
will have an excess of assets over liabilities at least as great as the User
would have had if such transfer had not been made.

          (2)  If consolidation, merger or sale or other transfer is made as
provided in subparagraph (g)(1), the provisions of subparagraph (g)(1) shall
continue in full force and effect and no further consolidation, merger or sale
or other transfer shall be made except in compliance with the provisions of
subparagraph (g)(1).

          (3)  The User will not transfer or convey any substantial portion of
its property, assets and licenses except upon receipt of adequate consideration
therefor.

          (4)  Anything in this Lease Agreement to the contrary notwithstanding,
the provisions of subparagraphs (g)(1), (2) and (3) shall not apply to any
transfer, merger, or consolidation by or among the User and Daimler-Benz North
America Corporation or the User and any Affiliate or Affiliates of Daimler-Benz
North America Corporation.

     (h)  The User will do, execute, acknowledge and deliver such further acts,
conveyances, mortgages, financing statements and assurances as the Issuer or the
Agent shall require for accomplishing the purposes of the Financing Documents.
The User will cause this Lease Agreement, any amendments to this Lease
Agreement, and other instruments of further assurance, including financing
statements and continuation statements, to be promptly recorded, registered and
filed, and at all times to be kept recorded, registered and filed in such places
as may be required by law fully to preserve and protect the rights of the Issuer
and the Agent to all property comprising the Project.

                                  ARTICLE 10

                        Events of Default and Remedies

     SECTION 10.1   Events of Default Defined

     The following shall be events of default under this Lease Agreement and the
term "Event of Default" shall mean, whenever used in this Lease Agreement, any
one or more of the following events:

          (1)  Failure to pay any installment of Rent, or any other amount due
     and payable under Section 5.02 hereof, that has become due and payable by
     the terms of this Lease Agreement (except with respect to any payment of
     Rent due in connection with optional redemption of any Bond), and such
     failure continues for a period of ten Business Days after written notice
     specifying such failure and requesting that such payment be made has been
     received by the User.

                                       26
<PAGE>

          (2)  Failure by the User to observe and perform any covenant,
     condition or agreement on the part thereof to be observed or performed
     pursuant to this Lease Agreement other than as referred to in subsection
     (a) of this Section, for a period of 30 days after written notice,
     specifying such failure and requesting that it be remedied, given to the
     User by the Issuer or the Agent or any Holder, provided that if such
     default is of a kind which cannot reasonably be cured within such 30-day
     period, the User shall have a reasonable period of time within which to
     cure such default, provided that the User begin to cure the default
     promptly after receipt of such written notice and proceeds in good faith,
     and with due diligence, to cure such default.

          (3)  The filing by the User of a voluntary petition in bankruptcy, or
     failure by the User promptly to lift any execution, garnishment or
     attachment of such consequence as will impair operations at the Project,
     the seeking of or consenting to or acquiescing by the User in the
     appointment of a receiver of all or substantially all property thereof or
     of the Project, or the adjudication of the User as a bankrupt, or any
     assignment by the User for the benefit of creditors thereof, or the entry
     by the User into an agreement of composition with creditors, or if a
     petition or answer is filed by the User proposing the adjudication of such
     User as a bankrupt or debt readjustment under any present or future federal
     bankruptcy code or any similar federal or state law in any court, or if any
     such petition or answer is filed by any other person and such petition or
     answer shall not be stayed or dismissed within 90 days.

          (4)  Any warranty, representation or other statement by or on behalf
     of the User and contained in any of the Financing Documents or in any other
     document or certificate furnished by the User in connection with the
     issuance of the Bonds shall be false, untrue or misleading in any material
     respect at the time made and the same shall not be made good or remedied
     within thirty days after written notice thereof to the User by the Agent or
     the Issuer or any Holder.

          (5)  An event of default by the User or the Guarantor shall occur
     under any of the Financing Documents.

     SECTION 10.2   Remedies on Default

     Whenever any such Event of Default shall have happened and be continuing,
the Issuer or the Agent may take any or all of the following remedial steps:

          (1)  Declare all installments of Basic Rent, and any other payments to
     be paid under Section 5.02 hereof, payable under this Lease Agreement for
     the remainder of the Lease Term to be immediately due and payable,
     whereupon the same shall become immediately due and payable;

                                       27
<PAGE>

          (2)  Reenter the Project Site and take possession of the Project,
     without terminating this Lease Agreement, and, upon ten days' prior written
     notice to the User, relet the Project or any part thereof for the account
     of the User, for such term (including a term extending beyond the Lease
     Term) and at such rentals and upon such other terms and conditions,
     including the right to make alterations to the Project or any part thereof,
     as the Issuer may, with the approval of the Agent, deem advisable, and such
     reletting of the Project shall not be construed as an election to terminate
     this Lease Agreement nor relieve the User of obligations to pay Rent or to
     perform any other obligations under this Lease Agreement, all of which
     shall survive such reentry and reletting, and the User shall continue to
     pay Rent until the end of the Lease Term, less the net proceeds, if any, of
     any reletting of the Project after deducting all of the Issuer's and
     Agent's expenses in connection with such reletting, including, without
     limitation, all repossession costs, brokers' commissions, attorneys' fees,
     alteration costs and expenses of preparation for relating.

          (3)  Terminate this Lease Agreement, exclude the User from possession
     of the Project and, if the Issuer or Agent elect so to do, lease the same
     for the account of the Issuer, holding the User liable for all Rent due up
     to the date such lease is made for the account of the Issuer.

          (4)  Take whatever legal proceedings may appear necessary or desirable
     to protect the interests of the Agent and the Holders under this Lease
     Agreement.

     SECTION 10.3   Agreement to Pay Attorneys' Fees and Expenses

     In the event the Issuer or the Agent (in its own name or in the name and on
behalf of the Issuer) should employ attorneys or incur other expenses for the
collection of Rent or the enforcement of performance or observance of any
obligation or agreement on the part of the User herein contained, the User will
on demand therefor pay to the Issuer or the Agent (as the case may be) the
reasonable fee of such attorneys and such other expenses.

     SECTION 10.4   Waivers of Past Defaults

     Either party hereto may waive any default by the other party under this
Lease Agreement and its consequence provided that any waiver by the Issuer must
be in writing and joined in by the Agent and the Holders.  Upon such waiver,
such default shall cease to exist and an Event of Default arising therefrom
shall be deemed to have been cured for every purpose of this Lease Agreement but
no such waiver shall extend to any subsequent or other default or impair any
right consequent thereon.

     SECTION 10.5   Availability of Remedies

     (a)  No remedy herein conferred upon or reserved to the Issuer or the Agent
is intended to be exclusive of any other available remedy or remedies, but each
and every such remedy shall be cumulative and shall be in addition to every
other remedy given under this Lease Agreement or now or hereafter existing at
law or in equity or by statute.

                                       28
<PAGE>

     (b)  No delay or omission to exercise any right or power accruing upon any
default shall impair any such right or power or shall be construed to be a
waiver thereof but any such right or power may be exercised from time to time
and as often as may be deemed expedient.

     (c)  All rights, remedies and powers provided by this Article may be
exercised only to the extent the exercise thereof does not violate any
applicable provision of law in the premises, and all the provisions of this
Article are intended to be subject to all applicable mandatory provisions of law
which may be controlling in the premises and to be limited to the extent
necessary so that they will not render this Lease Agreement invalid or
unenforceable.

                                  ARTICLE 11

                                    Options

     SECTION 11.1   Option to Terminate

     The User shall have, if not in default hereunder, the option to cancel or
terminate this Lease Agreement at any time prior to the expiration of any then
effective term hereof after full payment to the Issuer of an amount equal to the
purchase price set forth in Section 11.03 hereof by giving the Issuer notice in
writing of such termination and such termination shall forthwith become
effective.

     SECTION 11.2   Options to Extend and Renew

     (a)  The User shall have the right and option, hereby granted by the Issuer
and subject to the provisions of subsection (c) below, to extend and renew the
term of this Lease Agreement, as hereinafter provided, for the following
extension and renewal terms, upon compliance herewith:

          (1)  a term beginning on March 16, 2000 and continuing until and
     including March 15, 2005, and

          (2)  a term beginning on March 16, 2005 and continuing until and
     including March 15, 2010.

     (b)  Upon delivery to the Issuer and the Agent by the User on or before
June 15, 2000 or June 15, 2005, as applicable, of written notice of the election
of the User to extend and renew the term of this Lease Agreement for the then
applicable extension and renewal period as specified in said notice, the Lease
Term shall thereupon be extended and renewed for such extension and renewal term
as specified in said notice, and this Lease Agreement shall continue in full
force and effect on all terms and provisions hereof for such extension and
renewal term.

     (c)  Anything in this Lease Agreement or the other Financing Documents to
the contrary notwithstanding, the User shall have no right of extension or
renewal of the term hereof unless all Rent due and payable to the date of said
notice of extension and renewal shall have been paid in full and no Event of
Default shall then exist or would not be cured by exercise of said option.

                                       29
<PAGE>

     SECTION 11.3   Option to Purchase Project

     (a)  Anything in this Lease Agreement to the contrary notwithstanding, the
User shall have the option to purchase the Project at any time if no Event of
Default shall then exist or would not be cured by exercise of such option.

     (b)  To exercise such option, the User shall give written notice to the
Issuer and to the Agent, shall specify therein the date of closing such purchase
(which date shall not be more than 30 days from the date of such notice), and on
such date shall pay to the Agent for the benefit of the persons entitled thereto
the purchase price for the Project equal to (1) One Million Four Hundred
Thousand Dollars ($1,400,000), plus (2) the amount (if any) by which the amount
of the principal proceeds of the Series A Bonds applied to Series A Facilities
Costs exceed $1,400,000, plus (3) the expenses of the Issuer in connection with
such purchase; provided, the User shall receive a credit against such purchase
price for the amount of Net Proceeds of any insurance or condemnation award paid
to the Agent pursuant to Section 7.01(d) or Section 7.02(e).

     SECTION 11.4   Option to Purchase Portions of Project Site

     (a)  The User, if not in default hereunder, shall have the option to
purchase any Unimproved portion of the Project Site at any time and from time to
time with the prior written consent of the Agent and the Holders and for a
purchase price equal to the pro-rata cost of such portion of the Project Site to
be so purchased, provided that the User furnish the Issuer and the Agent and the
Holders with the following:

          (1)  A notice in writing containing (i) an adequate legal description
     of that portion of the Project Site with respect to which such option is to
     be exercised, which portion may include rights granted in party walls, the
     right to "tie-into" existing utilities, the right to connect and join any
     building, structure or improvement with existing structures, facilities and
     improvements on the Project Site, and the right of ingress or egress to and
     from the public highway which shall not interfere with the use and
     occupancy of existing structures, improvements and buildings, and (ii) a
     statement that the User intends to exercise such option to purchase such
     portion of the Project Site on a date stated.

          (2)  A certificate of an Independent Engineer or of an Independent
     Architect made and dated not more than 90 days prior to the date of the
     purchase and stating that, in the opinion of the person signing such
     certificate, (i) the portion of the Project Site with respect to which the
     option is exercised is not needed for the operation of the then existing
     Project and (ii) the severance of such portion of the Project Site and the
     location or construction thereon of buildings, structures and improvements,
     if any, will not impair the usefulness of the then existing Project or the
     means of ingress and egress to and from the remaining portions of the
     Project or impair or deny highway access, rail access or utility services
     to such remaining portions of the Project.

                                       30
<PAGE>

          (3)  An amount of money equal to the purchase price computed as
     provided in this Section, which amount shall be paid to the Agent and
     applied to the redemption or purchase of the principal of the Bonds in
     accordance with the terms thereof.

     (b)  Upon receipt of the notice and certificate required in this Section to
be furnished by the User and the payment by the User to the Agent of the
purchase price, the Issuer will promptly deliver to the User the documents
referred to in Section 11.05 hereof and will, if requested by the User, secure
from the Agent a release from the lien of the Indenture of the portion of the
Project Site with respect to which the User shall have exercised the option
granted in this Section.

     (c)  If such option relates to portions of the Project Site on which
transportation or utility facilities are located, the Issuer shall retain an
easement to use such transportation or utility facilities to the extent
necessary for the efficient operation of the Project.

     (d)  No purchase effected under the provisions of this Section shall affect
the obligation of the User for the payment of Rent and other payments in the
amounts and at the times provided in this Lease Agreement or the performance of
any other agreement, covenant or provision hereof, and there shall be no
abatement or adjustment in Rent by reason of the release of any such portion of
the Project Site and the obligations of the User shall continue in all respects
as provided in this Lease Agreement, excluding, however, any portion of the
Project Site so purchased.

     SECTION 11.5   Conveyance on Exercise of Option to Purchase

     At the closing of the purchase pursuant to the exercise of any option to
purchase granted in this Lease Agreement, the Issuer will, upon receipt of the
purchase price, deliver to the User documents conveying to the User the property
with respect to which such option was exercised, as such property then exists,
subject to the following: (1) those liens and encumbrances, if any, to which
title to said property was subject when conveyed to the Issuer; (2) these liens
and encumbrances created by the User or to the creation or suffering of which
the User consented; and (3) those liens and encumbrances resulting from the
failure of the User to perform or observe any of the agreements on the part of
the User contained in this Lease Agreement.  Upon such conveyance this Lease
Agreement shall be terminated and the Issuer and the User shall record an
appropriate instrument evidencing the same.

                                       31
<PAGE>

     IN WITNESS WHEREOF, the Issuer and the User have each caused this Lease
Agreement to be executed in its name under its corporate seal and the same to be
attested, all by officers thereof duly authorized thereunto, and the parties
hereto have caused this Lease Agreement to be dated as of March 1, 1995.

                              THE INDUSTRIAL DEVELOPMENT BOARD
                              OF THE CITY OF ANNISTON

                              By:                       /s/
                                 --------------------------
                                            John P. Wheeler
                              Its  Chairman of its Board of Directors
                                   ----------------------------------

S E A L
-------
Attest:                   /s/
       ---------------------
          Its Secretary

                              DEFENSE RESEARCH INCORPORATED

                              By:                       /s/
                                 --------------------------
                                           Duane F. Hawkins
                              Its                   President
                                   --------------------------

S E A L
-------

Attest:                   /s/
       ---------------------

  Its:          General Counsel and Secretary
      ---------------------------------------

                                       32
<PAGE>

STATE OF ALABAMA    )
                    )
CALHOUN COUNTY      )

     I, the undersigned, a Notary Public in and for said County in said State,
hereby certify that John P. Wheeler , whose name as Chairman of the Board of
Directors of The Industrial Development Board of the City of Anniston, a public
corporation, is signed to the foregoing Lease Agreement and who is known to me,
acknowledged before me on this day that, being informed of the contents of said
Lease Agreement, he, as such officer and with full authority, executed the same
voluntarily for and as the act of said public corporation.

     Given under my hand and seal this the 31sday of March 1995.

                                                /s/
                                        ----------
                                        Notary Public

NOTARIAL SEAL

My commission expires:_____

                                       33
<PAGE>

STATE OF FLORIDA     )
HILLSBOROUGH COUNTY  )

     I, the undersigned, a Notary Public in and for said County in said State,
hereby certify that. D. F. Hawkins whose name as President of Defense Research
Incorporated, a Delaware corporation, is signed to the foregoing Lease
Agreement, and who is known to me, acknowledged before me on this day that,
being informed of the contents of said Lease Agreement, he, as such officer and
with full authority, executed the same voluntarily for and as the act of said
corporation.

     Given under my hand and seal this the 28th day of March, 1995.

                                    /s/
                              --------
                              Notary Public

NOTARIAL SEAL

My commission expires:______

                                       34
<PAGE>

                                   EXHIBIT A

                          Description of Project Site
                          ---------------------------

Lots 12 and 13, Greenbrier Industrial Park, as recorded in Plat Book "Z" at page
100; and Lot 14A, a resubdivision of Greenbrier Industrial Park Lot 14, as
recorded in Plat Book "CC" at page 5, in the Probate Office of Calhoun County,
Alabama.

ALSO: Lot 25A-3, a resubdivision of Lots 25A & 26B, as recorded in Plat Book CC,
at Page 12, in the Probate Office of Calhoun County, Alabama; said lot being
more particularly described as follows:  Beginning at a point described as being
the Southeast corner of the SW1/4 of the NWl/4 of Section 22, Township 16 South,
Range 8 East; said point also being the Southeast corner of said Lot 26; thence
Westerly along the described South line of quarter 1009.32 ft.; thence Northerly
with an interior angle of 90 degrees 10 min. 52 sec. 1077.76 ft. to the North
line of said Lot 26; thence Easterly with an interior angle of 90 degrees 12
min. 21 sec. 368.88 ft. to the true point of beginning of the hereafter
described TRACT 25A-3; thence continue Easterly along the previous course 11.13
ft. to the intersection of said North line with the cul-de-sac ending Commerce
Boulevard; thence Southeasterly with an interior angle of 140 degrees 50 min. 59
sec. counterclockwise along a radius of 82 ft. a chord length of 99.70 ft.;
thence Southeasterly with an interior angle of 147 degrees 27 min. 26 sec. 61.05
ft; thence Easterly with an interior angle of 108 degrees 18 min. 25 sec. 482.95
ft.; thence Northerly with an interior angle of 91 degrees 31 min. 35 sec. 86.03
ft.; thence Northerly with an interior angle of 179 degrees 55 min. 53 sec.
34.91 ft.; thence Northerly with an interior angle of 180 degrees 02 min. 57
sec. 356.09 ft. to the South Right of Way line of Red Morris Parkway; thence
Westerly along said South ROW line as follows: with an interior angle of 88
degrees 45 min. 36 sec. 104.73 ft.; with an interior angle of 202 degrees 29
min. 59 sec. a chord length of 180.02 ft. with an interior angle of 157 degrees
30 min. 01 sec. a chord length of 35.36 ft. to the Southeast Right of Way line
of Commerce Boulevard; thence Southwesterly with an interior angle of 135
degrees 00 min. 00 sec. 259.91 ft.; thence Southwesterly with an interior angle
of 165 degrees 22 min. 09 sec. along said ROW line a chord length of 161.66 ft.;
thence clockwise along a cul-de-sac with radius of 65 ft. with an interior angle
of 153 degrees 37 min. 20 sec. a chord length of 104.55 ft. to the South line of
said Lot 25; thence Easterly with an interior angle of 85 degrees 44 min. 29
sec. along said South line 45.36 ft. to the true point of beginning; containing
5.75 acres, more or less, situated, lying and being in Calhoun County, Alabama.

                                       35
<PAGE>

                                   EXHIBIT B

                 Description of Personal Properly and Fixtures
                 ---------------------------------------------

     Heating and air conditioning equipment; electrical equipment, apparatus,
and fixtures; plumbing fixtures; fire detection, suppression and extinguishment
equipment and apparatus; and building materials and supplies to be incorporated
in the Series A Facilities.

                                       36

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