Document:

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                                                                    Exhibit 10.7

     OPERATING LEASE, dated as of May 31, 1980, ("this Lease"), between ARDEN
HILLS ASSOCIATES, a Minnesota limited partnership ("Lessor"), having an address
at 4162 IDS Center, Minneapolis, Minnesota 55402 and LAND O'LAKES, INC., a
Minnesota cooperative corporation (herein, together with its successors and
assigns, called "Lessee"), having an address at 614 McKinley Place, Minneapolis,
Minnesota 55413.

     1.   Definitions. The definitions of the capitalized terms used in this
Lease are located herein as follows:

<Table>
<Caption>
             Term                          Paragraph
             ----                          ---------
<S>                                   <C>
Additional Optional Term                       4(b)
Additional Rent                                5(b)
Additions                                     12
Alterations                                   12
Basic Rent                                     5(a)
Casualty Termination Date                     13(e)
Debt Service                                  13(b)
Debt Service Shortfall                        19(k)
Discounted Future Basic Rent                  19(g)
Event of Default                              19(a)
Extended Terms                                 4(a)
Fair Market Value                             15(c)
Fair Market Rental Value                      19(g)
Ground Lease                                   2
Ground Lessor                                 20(c)
Impositions                                    8(a)
Improvements                                   2
Insurance Requirements                         8(c)
Land                                           2
Lease Year                            Schedule B, Part III
Legal Requirements                             8(b)
Lessor's Equity                               13(f)
Lessor's Interest in the Premises             15(c)
Mortgage                                       5(a)
Mortgage Note                                  5(a)
Mortgagee                                      5(a)
Payment Dates                                  5(a)
Permitted Encumbrances                Schedule A, Part II
Premises                                       2
Primary Term                                   4(a)
Primary Term Commencement Date        Schedule B, Part I
Project Costs                         Schedule B, Part II
Termination Date                              13(c)
Trade Fixtures                                12
</Table>

     2.   Lease of Premises; Title and Condition. In consideration of the rents
and covenants herein stipulated to be paid
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and performed by Lessee and upon the terms and conditions herein specified,
Lessor hereby leases to Lessee, and Lessee hereby lets from Lessor, the
premises (the "Premises") consisting of (i) the Lessor's interest in the land
described in Schedule A (the "Land") pursuant to the ground lease executed
contemporaneously herewith (the "Ground Lease"), together with all of Lessor's
other interests under the Ground Lease, (ii) all buildings and other
improvements and equipment, fixtures and items of personal property attached to
or used in the operation or maintenance of the improvements now or hereafter
located on the Land and owned by Lessor, specifically including, but not
limited to, those items described in Schedule C (the "Improvements"), and (iii)
all easements, rights and appurtenances relating to the Premises. The Premises
are leased to Lessee in their present condition without representation or
warranty by Lessor and subject to the rights of parties in possession, to the
existing state of title, to any state of facts which an accurate survey or
physical inspection thereof might show, to all zoning regulations,
restrictions, rules and ordinances, building restrictions and other laws
and regulations now in effect or hereafter adopted by any governmental
authority having jurisdiction over the Premises, and to all the terms and
conditions of, and to the continuance of, the Ground Lease. Lessee has examined
the Premises and title thereto and has found the same satisfactory. Lessor and
Lessee acknowledge that the Improvements on the Premises have been designed and
are being constructed in accordance with plans approved by Lessee, and that
construction of the Improvements is being supervised by Lessee. Solely as
between Lessor and Lessee, the taking of possession of the Premises by Lessee
shall be conclusive evidence that the Premises are in good condition and that
Lessee has accepted the Premises "as is." Lessor makes no warranties or
representations, express or implied, as to the design, construction, condition,

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merchantability or quality of the Improvements or the materials, equipment,
fixtures, appliances or workmanship in the Improvements, nor as to the fitness
of the Improvements, materials, equipment, fixtures or appliances for any
particular purpose, whether known or unknown to Lessor.

     3.  Use.   Lessee may occupy and use the Premises for any lawful purpose.
Lessee agrees that it will not permit any unlawful occupation, business or trade
to be conducted on the Premises. Lessee shall not use or occupy or permit the
Premises to be used or occupied, nor do or permit anything to be done in or on
the Premises or any part thereof, in a manner that may make it impossible to
obtain fire or other insurance thereon required to be furnished hereunder by
Lessee, or that will cause or be likely to cause structural injury to any part
of the Premises, or that will constitute a public or private nuisance or waste.

     4.  Terms.   (a) The Premises are leased for an Interim Term as defined in
Schedule B hereof and for a primary term of twenty-nine years (the "Primary
Term"), and, at Lessee's option, for three consecutive additional terms of five
years each plus one additional term of four years (collectively, the "Extended
Terms"), unless and until the term of this Lease shall expire or be terminated
pursuant to any provision hereof. The Interim Term, the Primary Term and each
Extended Term shall commence and expire on the dates set forth in Schedule B.
Lessee may exercise its option to extend the term of this Lease for an Extended
Term by giving notice thereof to Lessor not less than twelve months before the
expiration of the then existing term.

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      (b) Upon the expiration of the fourth Extended Term hereof as provided in
Paragraph 4(a), Lessee may elect, as hereinafter provided, to enter into a new
lease of the Premises for one or more consecutive additional terms
(individually, an "Additional Optional Term") not exceeding twenty-one years in
the aggregate. Such new lease shall contain terms substantially identical to the
terms and conditions hereof, except as follows:

          (1) Basic Rent during any Additional Optional Term shall be equal to
     Fair Market Rental Value of the Premises as defined in Paragraph 19(g)
     hereof, determined (if Lessor and Lessee are unable to agree) by appraisal
     as provided in Paragraph 15(d) hereof;

          (2) In the event of a condemnation or casualty of the nature described
     in Paragraphs 13(c) and 13(e) respectively, Lessee shall not be obligated
     to offer to purchase the Premises as therein provided.

          (3) The purchase right contained in Paragraph 15 hereof shall be
     deleted; and

          (4) Lessor and Lessee may agree on and include such other terms in
     such new lease as they may deem appropriate. Lessee may exercise its option
     to enter into a new lease for an Optional Additional Term(s) by giving
     notice thereof to Lessor not less than twelve months prior to the
     expiration of the fourth Extended Term of this Lease. Without Lessor's
     prior written consent, the benefit of this Paragraph 4(b) shall not inure
     to any assignee or sublessee of the Lessee hereunder.

     5. Rent. (a) Lessee shall pay to Lessor in lawful money of the United
States as fixed rent for the Premises, the amounts set forth in Schedule B
("Basic Rent") on the dates set forth therein ("Payment Dates"), at Lessor's
address as set forth above, or at such other address or to such other person as
Lessor from

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time to time may designate by giving Lessee notice thereof. If the Mortgagee so
requires in accordance with the provisions of an assignment of rents or other
appropriate instrument given by Lessor to Mortgagee, Lessee, upon receipt of
written notice signed by the Mortgagee or Lessor, shall remit said Basic Rent
to Bankers Life Company (the "Mortgagee" which term includes any successor
holder of the Mortgage Note), the holder of Lessor's promissory note (the
"Mortgage Note") secured by a mortgage dated contemporaneously herewith, and
recorded at St. Paul, issued to the Mortgagee creating a first lien upon the
Premises (the "Mortgage").

     (b)  All amounts which Lessee is required to pay pursuant to this Lease
(other than Basic Rent, amounts payable upon purchase of the Premises and
amounts payable as liquidated damages pursuant to Paragraph 19), together with
every fine, penalty, interest and cost which may be added for non-payment or
late payment thereof, shall constitute additional rent ("Additional Rent"). If
Lessee shall fail to pay any Additional Rent, Lessor shall have the right to pay
the same and shall have all rights, powers and remedies with respect thereto as
are provided herein or by law in the case of non-payment of Basic Rent. Lessee
shall pay to Lessor interest at the rate of twelve percent per annum (or, if
lower, the maximum interest rate permitted by applicable law) on all overdue
Basic Rent from the Payment Date thereof until paid, and on all overdue
Additional Rent paid by Lessor on behalf of Lessee from the earlier of the due
date of such Additional Rent or the date of payment thereof by Lessor, until
repaid by Lessee. Lessee shall also pay to Lessor upon demand the sum of 2-1/2
cents for each $1.00 on all overdue Basic Rent and Additional Rent which becomes
overdue for a period exceeding 10 days, said sum being a reasonable estimate of
the additional expense imposed upon Lessor for handling said overdue payments.
Lessee shall perform all its

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obligations under this Lease at its sole cost and expense, and shall pay all
Basic Rent and Additional Rent when due, without notice or demand.  Upon the
occurrence of an Event of Default as defined in Paragraph 19(a), and if Lessor
so requests, Lessee shall make monthly deposits with respect to taxes and
other Impositions (as defined in Paragraph 8) in such amount and manner as the
Mortgagee may require.

     6. Net Lease; Non-Terminability. (a) This Lease is a net lease, and ,
except as otherwise expressly provided herein, any present or future law to the
contrary notwithstanding, Lessee shall not be entitled to any abatement,
reduction, set-off, counterclaim, defense or deduction with respect to any Basic
Rent, Additional Rent or other sum payable hereunder, nor shall the obligations
of Lessee hereunder be affected, by reason of any failure to complete, defect
in, or damage to or destruction of the Premises; any taking of the Premises or
any part thereof by condemnation or otherwise; any prohibition, limitation,
restriction or prevention of Lessee's use, occupancy or enjoyment of the
Premises, or any interference with such use, occupancy or enjoyment by any
person; any eviction by paramount title or otherwise; any default by Lessor
hereunder or under the Ground Lease, the construction loan agreement between
Lessor and Bankers Life Company providing financing for the Improvements or any
other agreement; the termination of the Ground Lease; the impossibility or
illegality of performance by Lessor, Lessee or both; any bankruptcy,
insolvency, reorganization, liquidation, dissolution or other legal proceeding
involving Lessor, whether or not this Lease is terminated or Lessee is
dispossessed, or both, by reason thereof; any action of any governmental
authority; any acquisition by Lessee of Lessor's interest in this Lease,
through termination of the Ground Lease or otherwise; or any other cause
whether similar or dissimilar to the foregoing.  The parties intend that

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the obligations of Lessee hereunder shall be separate and independent covenants
and agreements and shall continue unaffected unless such obligations shall have
been modified or terminated pursuant to an express provision of this Lease.
      (b)Lessee shall remain obligated under this Lease in accordance with its
terms and shall not take any action to terminate, rescind or avoid this Lease,
notwithstanding any bankruptcy, insolvency, reorganization, liquidation,
dissolution or other proceeding affecting Lessor or any assignee of Lessor or
any action with respect to this Lease which may be taken by any trustee,
receiver or liquidator or by any court. Except as otherwise expressly provided
herein, Lessee waives all rights to terminate or surrender this Lease, or to any
abatement or deferment of Basic Rent, Additional Rent or other sums payable
hereunder.
      7. Representations and Warranties. (a) Lessee represents and warrants
to Lessor as follows:
           (i) Organization, Standing, etc. Lessee is a cooperative corporation
      duly organized, validly existing and in good standing under the laws of
      the State of Minnesota with all requisite powers for the making of, and
      performance of its obligations under this Operating Lease, the Ground
      Lease, the Agency Agreement and all other agreements and instruments to
      be executed by Lessee in connection with the transaction described
      herein. Lessee is duly qualified and in good standing as a foreign
      corporation in the states of Iowa, Wisconsin, North Dakota, South Dakota
      and Nebraska, and in each other jurisdiction in which the nature of its
      business or the character of the property owned by it therein makes such
      qualification necessary.
          (ii) Other Liabilities. Lessee has no liabilities, contingent or
      otherwise, not fully disclosed in its
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consolidated balance sheet as of December 31, 1979, except those incurred
subsequent to that date in the ordinary and usual course of business, none of
which either singly or in the aggregate would affect the financial position of
Lessee in a manner which would be materially adverse to Lessee.

     (iii)  No Adverse Changes or Transactions Outside Ordinary Course of
Business. Since December 31, 1979, there has been no change in the business,
properties, assets, prospects, profits or condition (financial or otherwise) of
Lessee except changes in the ordinary course of business, none of which
individually or in the aggregate has been materially adverse.

     (iv)   Title to Properties. Lessee has good and marketable title in fee
simple (or its equivalent under applicable law) to all of its principal fixed
assets which are real property and good and merchantable title to all other
assets it purports to own, including those reflected in its balance sheet as at
December 31, 1979, or acquired since that date (except assets sold since said
date in the ordinary course of business, collections on accounts receivable,
gradual write-offs of pre-paid assets and similar items disposed of in the
ordinary course of business), subject to no liens or encumbrances, or title
retention or other similar agreements, which either are in effect or will be in
effect as of the Closing Date. Lessee enjoys peaceful and undisturbed possession
under all the leases under which it is operating, none of which contains any
unusual or burdensome provision which would affect or impair any of the
operations of Lessee in a manner which would be materially adverse.

     (v)    Litigation. There is no litigation at law or in equity, nor any
proceeding before any federal, state or

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municipal court, board or other governmental or administrative agency, or any
arbitration board or tribunal, pending or, to the knowledge of Lessee's
management, threatened against or affecting Lessee which involves the
possibility of any material adverse effect upon the business, properties,
assets, prospects, profits or condition (financial or otherwise) or Lessee or
the right of Lessee to conduct its business as presently conducted, or the
ability of Lessee to perform this Agreement and the transaction described
herein, and Lessee knows of no basis for any such litigation or other
proceeding. Lessee is not in default under, and neither the execution and
performance of this Operating Lease, the Ground Lease, the Agency Agreement and
all other agreements and instruments to be executed by Lessee in connection
with the transaction described herein nor compliance with the provisions of any
of the foregoing or the Mortgage, will constitute or result in a violation or
default with respect to any order, writ, injunction or decree of any court or
other governmental authority.

          (vi) No Violations; Governmental Consent. Neither the execution and
performance of this Operating Lease, the Ground Lease, the Agency Agreement and
all other agreements and instruments to be executed by Lessee in connection
with the transaction described herein, nor compliance with the foregoing or the
Mortgage, will constitute or result in any violation of any applicable
provision of law or any rule or regulation of any governmental authority having
jurisdiction, or conflict with, or result in any breach of any of the terms,
conditions or provisions of, or constitute a default under, or result in the
creation of any lien, charge or encumbrance upon any of the properties or
assets of

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Lessee pursuant to, any articles of incorporation or charter, by-laws,
indenture, mortgage, deed of trust, agreement or other instrument to which
Lessee is a party, or which it has assumed, or by which it or its properties
may be bound or affected. Neither the nature of Lessee or of any subsidiary or
affiliate, nor of any of their respective businesses or properties, nor any
relationship between Lessee and any subsidiary, affiliate, or any other person
or entity, nor any circumstance in connection with the transaction described
herein, is such as to require a consent, approval or authorization of, or
filing, registration or qualification with any governmental authority on the
part of Lessee or any subsidiary or affiliate as a condition to the execution
and delivery of this Operating Lease or any other document or instrument
executed in connection herewith.

     (vii)     Other Agreements. Lessee is not a party to or bound by any
commitment, contract or agreement, or subject to any articles of incorporation,
by-laws or other restriction, or any order, judgment or regulation which
involves the possibility of any material adverse effect upon its business,
properties, assets, prospects, profits, or condition (financial or otherwise).
Lessee is not in default under any provision of its articles of incorporation
or by-laws or of any indenture, mortgage, promissory note, agreement, or other
instrument to which it is a party, or which it has assumed, or by which it or
its properties may be bound or affected.

     (viii)    Compliance with Law. Lessee is not in violation of any laws,
ordinances, governmental rules or regulations to which it is subject, and has
duly obtained all licenses, permits, franchises or other governmental

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authorizations necessary to the ownership of its property or to the conduct of
its business, which violation or failure to obtain might affect the business,
operations, affairs, properties, prospects, profits, or condition (financial or
otherwise) of Lessee in a manner which would be materially adverse.

     (ix) Compliance With Laws Relating to Agriculture.

     (l)  Lessee "is operated for the mutual benefit of the members thereof"
and is an association of agricultural producers as those terms are defined or
used in 7 U.S.C. Section 291, and is otherwise in compliance with the
requirements of Title 7, Chapter 12 of the United States Code. Lessee is not
the subject of any pending investigation by the United States Secretary of
Agriculture, including any investigation undertaken pursuant to 7 U.S.C.
Section 292, nor has any charge or complaint been issued by the Secretary of
Agriculture at any time under 7 U.S.C. Section 292 respecting Lessee or any of
its subsidiaries.

     (2)  Lessee is a "cooperative association" as defined in 12 U.S.C. Section
1141(j); and:

          (i)   a member of Lessee is not allowed and in fact does not possess
     or exercise more than one vote because of the amount of stock or membership
     capital such member owns therein; and

          (ii)  Lessee pays no dividends on stock or membership capital in
     excess of 8% per annum; and

          (iii) Lessee does not deal in farm products, farm supplies, and farm
     business services with or for non-members in an amount greater in value
     than the total amount of such business transacted by it with or for
     members.

     (3)  Lessee represents certain of its producer members as a qualified
cooperative association of

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     producers under various federal milk marketing orders promulgated under
     authority of the Agricultural Adjustment Act as reenacted by the
     Agricultural Marketing Act of 1937, 7 U.S.C. Section 608 et seq, and is
     authorized to receive payments of the uniform price for all milk pooled in
     such orders and to act as agent for such members under the provisions of 7
     U.S.C. Section 610.

          (4) Lessee and each of its subsidiaries is in full compliance with all
     state and federal laws, rules, regulations and orders relating to the
     establishment and operation of political or lobbying organizations and
     relating to political contributions or segregated political funds.

          (x) Brokers. Hunter, Keith, Marshall & Eaton Incorporated is the only
     broker with which Lessee has dealt in the transactions contemplated by this
     Lease, and Lessee shall indemnify and save harmless Lessor from any claims
     for commissions, fees, damages and expenses asserted by any other broker
     with whom Lessee has dealt in connection with these transactions.

     (b) Lessor's Representations and Warranties. Lessor represents and
warrants to Lessee as follows:

               (i) Organization and Powers. Lessor is a duly organized and
          validly existing limited partnership under the laws of the State of
          Minnesota, conducts no business outside the State of Minnesota, and
          has all requisite authority to own its property and carry on its
          business as now conducted and as presently proposed to be conducted.

               (ii) Governmental Consent. Nothing in the nature of Lessor's
          organization, business, or relationship with any other person or
          entity is such as to require a consent, approval or authorization

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          of, or filing, registration or qualification with any governmental
          authority on the part of Lessor as a condition to the execution and
          delivery of this Operating Lease or any of the leases, agreements,
          instruments or other documents to be executed in connection herewith.

               (iii) Brokers. Hunter, Keith, Marshall & Eaton Incorporated is
          the only broker with which Lessor has dealt in the transactions
          contemplated by this Agreement, and the Lessor shall indemnify and
          save harmless Lessee from any claims for commissions, fees, damages
          and expenses asserted by any other broker with whom the Lessor has
          dealt in connection with this transaction.

     (c)  All representations, warranties, covenants, and agreements made by
Lessor and Lessee herein shall survive the execution and delivery of this Lease.

     8.   Taxes and Assessments; Legal Requirements; Insurance Requirements. (a)
Lessee shall pay: (i) all taxes, assessments, levies, fees, water and sewer
rents and charges, and all other charges, whether ordinary or extraordinary,
foreseen and unforeseen, which are, at any time prior to or during the term
hereof, imposed or levied upon or assessed against (A) the Premises, (B) any
Basic Rent, Additional Rent or other sums payable hereunder or (C) this Lease or
the leasehold estate hereby created or which arise in respect of the operation,
possession or use of the Premises, commencing with those payable in 1980; (ii)
all gross receipts or similar taxes imposed or levied upon, assessed against or
measured by any Basic Rent, Additional Rent or other sum payable hereunder;
(iii) all sales, use and similar taxes at any time levied, assessed or payable
on account of the acquisition, construction, leasing or use of the Premises; and
(iv) all charges for utilities serving

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the Premises; (all of which items (i) - (iv) are collectively referred to as
"Impositions"). In no event, however, shall Lessee be required to pay any
Imposition which is being contested by Lessee pursuant to Paragraph 18, or to
pay any franchise, estate, inheritance, transfer, income or similar tax of
Lessor (other than any tax referred to in item (ii) above). Lessee will furnish
to Lessor, promptly after demand therefor, proof of payment of all Impositions
which are payable by Lessee. If, however, by law, any Imposition is or may be
payable in installments, Lessee may pay the same (with any accrued interest on
the unpaid balance of such Imposition) in installments as the same become due
and before any interest or additional charge may be added thereto for the
non-payment of any such installment; and provided, further, that any Imposition
payable with respect to a fiscal tax period during which the term of this Lease
shall expire or terminate, otherwise than (i) because of the fault of Lessee or
(ii) because Lessee purchases the Premises pursuant to Paragraph 13 or 16, shall
be adjusted between Lessor and Lessee as of the expiration or termination of the
term of this Lease, so that Lessee shall pay an amount which bears the same
relation to the total Imposition as the part of such fiscal tax period included
within the term of this Lease bears to the entire fiscal tax period.

     (b)  Lessee shall comply with and cause the Premises to comply with all
federal, state, county, municipal and other governmental statutes, laws, rules,
orders, regulations, ordinances, judgments, decrees and injunctions affecting
the Premises or the use or alteration thereof, whether now or hereafter enacted
and in force, including any which either may require repairs, modifications or
alterations in or to the Premises or in any way limit the use and enjoyment
thereof; and all permits, licenses and authorizations and regulations relating
thereto and covenants, agreements, restrictions and encumbrances contained in
any instrument, either of record or known to Lessee, at any time in force
affecting the

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Premises, not including, however, covenants, agreements, restrictions and
encumbrances made or entered into by Lessor after the execution of the Ground
Lease without the prior written approval of Lessee, (the foregoing collectively
denoted the "Legal Requirements").

     (c)  Lessee shall comply with and cause the Premises to comply with terms
of any insurance policy covering or applicable to the Premises which Lessee is
required to maintain pursuant to Paragraph 14 of this Lease, and with all
requirements of the issuer of any such policy (the foregoing collectively
denoted the "Insurance Requirements").

     9.   Liens.    Except as otherwise provided herein, Lessee shall not
directly or indirectly create or permit to be created or to remain, and will
promptly discharge, at its expense, any mortgage, lien, encumbrance or charge
on, pledge of, or conditional sale or other title retention agreement with
respect to the Premises or the Basic Rent or Additional Rent payable under this
Lease (other than the Mortgage, Permitted Encumbrances as defined in Part III of
Schedule A attached hereto, and any mortgage, lien, encumbrance or other charge
on, pledge of, or conditional sale or any other title retention agreement
created by or resulting from any act of or failure to act by Lessor). The
existence of any mechanic's, laborer's, materialman's, supplier's or vendor's
lien, or any right in respect thereof, shall not constitute a violation of this
Paragraph 9, if payment is not yet due upon the contract or for the goods or
services in respect of which any such lien has arisen. Nothing contained in this
Lease shall be construed as constituting the consent or request of lessor,
expressed or implied, to or for the performance of any labor or services or the
furnishing of any goods or materials by any contractor, sub-contractor, laborer,
materialman or vendor.

     10.  Indemnification.  Lessee shall defend all actions against Lessor with
respect to, and shall pay, protect, indemnify

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and save harmless Lessor from and against, any and all liabilities, losses,
damages, costs, expenses (including reasonable attorneys' fees and expenses),
causes of action, suits, claims, demands or judgments of any nature arising from
(i) injury to or death of any person, or damage to or loss of property, on the
Premises, or on adjoining sidewalks, streets or ways, or connected with the use,
condition or occupancy of any thereof, (ii) violation of this Lease by Lessee,
(iii) any act or omission of Lessee or its agents, contractors, licensees,
sublessees or invitees, and (iv) any contest referred to in Paragraph 18 below.

     11. Maintenance and Repair. Lessee will maintain the Premises at its
expense in good repair and condition, except for ordinary wear and tear, and
will make with reasonable promptness all structural and non-structural, foreseen
and unforeseen and ordinary and extraordinary changes and repairs which may be
required to keep the Premises in good repair and condition. Lessor shall not be
required to maintain, repair or rebuild the Improvements or to maintain the
Premises, and Lessee waives the right to make repairs at the expense of Lessor
pursuant to any law at any time in effect.

     12. Alterations, Substitutions, Replacements, Trade Fixtures and Additions.
Lessee, without expense to Lessor, may at any time and from time to time make
alterations of the Improvements on the Premises and substitutions and
replacements for the same and additional Improvements (collectively,
"Alterations"), provided that (i) the market value of the premises shall not be
thereby reduced or their usefulness impaired; (ii) the work shall be done
expeditiously and in good and workmanlike manner; (iii) a copy of the plans and
specifications for any single Alteration with an estimated cost in excess of 5%
of the then market value of the Improvements (based upon Lessee's good faith
estimate of such market value) shall be furnished to Lessor at least 30 days
prior to beginning such work; (iv) Lessee shall

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comply with all Legal Requirements and Insurance Requirements, if any,
applicable to the work and requirements if any placed on Lessor by the Mortgage;
and (v) Lessee shall promptly pay all costs and expenses and discharge any and
all liens arising in respect of the work. All Alterations shall be the property
of Lessee during the term of this Lease and any extensions thereof; but upon
expiration or termination of this Lease, whether by default, lapse of time or
otherwise, such Alterations shall become and remain thereafter the property of
Lessor, and shall be deemed part of the Premises. In the event that estimated
cost of any Alteration exceeds 5% of the then market value of the Improvements
(based upon Lessee's good faith estimate of such market value) such Alteration
shall be made under the supervision of a qualified architect or engineer. Lessee
may place upon the Premises any furniture, furnishings, inventory, trade
fixtures, machinery, computers or equipment belonging to Lessee or third parties
(collectively, "Trade Fixtures") and may remove the same at any time during the
term of this Lease. Lessee shall repair at no expense to Lessor any damage to
the Premises caused by such removal. Lessor agrees to execute a waiver in a form
reasonably specified by the owner of such Trade Fixtures which relinquishes any
rights Lessor may now or hereafter have, by nature of this Lease, to such Trade
Fixtures, provided that Lessee or the owner of such Trade Fixtures agrees in
writing, as a condition to Lessor's executing such waiver, to repair at no
expense to Lessor any damage occasioned by the removal of such Trade Fixtures.
Lessee, at its sole cost and expense, may, enlarge the Improvements or construct
additional improvements upon the Premises ("Additions"), provided that such
Additions are constructed in accordance with all other terms and conditions of
this Lease and in conformity with zoning, building and other applicable codes,
laws and regulations. Prior to enlarging Improvements or constructing Additions
upon the Premises, Lessee

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may, but shall not be required to, obtain Lessor's consent for purposes of
paragraph 15(c) hereof. Such consent shall not be unreasonably withheld. All
Additions shall be constructed under the supervision of a qualified architect
or engineer.

     13. Condemnation and Casualty.

     (a) Lessor and Lessee shall cooperate with each other and both shall have
the right to participate in negotiations or proceedings to determine the
amount of the award in any condemnation proceeding with respect to the
Premises, or to determine the amount of the insured loss or recovery in
negotiations or proceedings with insurance carriers.

     (b) In the event that less than all of the Premises are taken,
requisitioned or sold in, or on account of any actual or threatened
condemnation proceeding, Lessee shall be obligated, unless this Lease is
terminated or Lessee purchases the Premises in accordance with paragraph 13(c),
to promptly commence and diligently complete the repair and restoration of the
Premises so that upon completion, the Premises will constitute a complete
architectural unit, with an appearance, character and commercial value as
nearly as practicable equal to the value of the Premises immediately prior to
the taking. There shall be no abatement of Basic Rent during the first three
Lease Years as a result of any taking during the first three Lease Years.
Beginning with the fourth Lease Year of the Primary Term and during the
remainder of the Primary Term and any Extended Term, there shall be an
abatement of Basic Rent payable hereunder after such taking in an amount equal
to the product of the Basic Rent applicable immediately prior to such taking,
multiplied by a fraction, the numerator of which is the reduction in Fair
Market Value of the Premises resulting from the taking, and the denominator of
which is the Fair Market Value of the Premises immediately prior to such
taking. In the event the parties cannot agree on such Fair Market Values within
sixty (60) days after such taking, such Fair Market

                                       18

<PAGE>
Values shall be determined by appraisal in the manner set forth in Paragraph
15(d) hereof; provided, however, that quarterly installments of Basic Rent
shall never be reduced by such abatement by an amount more than the reduction,
if any, in quarterly principal and interest payable to Mortgagee under the
Mortgage Note ("Debt Service") as such Debt Service may be reduced by the
Mortgagee following application of all or a portion of the condemnation award
in reduction of the indebtedness secured by the Mortgage. In no event shall
there be an abatement of any Additional Rent, or an abatement of Lessee's
obligation to carry and pay for insurance on the Premises as required herein.
Subject to the provisions of the Mortgage, Lessee shall be reimbursed for its
actual costs of repair and restoration to the extent of the net proceeds of the
award received on account of such taking. If the condemnation award is
inadequate (after the payment of all out-of-pocket costs, including attorney
fees, incurred in connection with such award) to reimburse Lessee for such
repair and restoration costs, Lessee shall pay any additional amounts required
from its own funds, such additional amounts to be paid to the relevant
contractors and materialmen prior to disbursement of any part of the net
proceeds of the award. If such repair and restoration involves estimated costs
in excess of 5% of the then market value of the Improvements (based upon
Lessee's good faith estimate of such market value) or structural changes to the
Improvements, Lessee shall conduct such repair or restoration in compliance
with the provisions of Paragraph 11 of this Lease. If the portion of the
estimated cost of repair and restoration under this Paragraph 13(b) not covered
by a condemnation award exceeds 10% of the then market value of the
Improvements (based upon Lessee's good faith estimate of such market value),
and Lessor so requests, Lessee shall obtain and furnish to Lessor a performance
and payment bond with a corporate surety in an amount not less than such
portion of costs not covered by such award. Subject to

                                       19
<PAGE>
the rights of Mortgagee, and to the extent available after payment of
out-of-pocket costs as provided above and after Lessee's costs of repair or
restoration have been reimbursed, Lessor shall apply so much of any unexpended
condemnation award in reduction of the Mortgage balance as is necessary to
reduce the re-amortized debt service on the Mortgage by the same amount as
Basic Rent abates under the foregoing formula. Any portion of an award not
required for such purposes shall belong to Lessor.

     (c) In the event all of the Premises, or so much thereof, in Lessee's good
faith judgment, as to cause the portion of the Premises not taken to be
unsuitable for Lessee's purposes, even after restoration and repair, are
permanently taken, requisitioned or sold in, or on account of, any actual or
threatened condemnation proceeding, then Lessee shall, not later than 30 days
after such taking, deliver to Lessor (i) notice of its intention to terminate
this Lease on the next Payment Date (the "Termination Date") which occurs after
the later of (A) not less than 4 months after the delivery of such notice and
(B) 10 days after final payment of the condemnation award and (ii) a
certificate of Lessee stating that in the good faith judgment of Lessee's Board
of Directors, such taking has rendered the Premises unsuitable for restoration
for continued use and occupancy in Lessee's business. If the Termination Date
occurs during the Primary Term, such notice shall be accompanied by an
irrevocable offer to purchase any remaining portion of the Premises and the net
proceeds of the condemnation award on the Termination Date, at a price equal to
the then unpaid principal balance of, and accrued interest on the Mortgage and
all other indebtedness secured by the Mortgage (or, if the purchase occurs
during any unexpired redemption period from foreclosure of the Mortgage, the
amount required for redemption) plus Lessor's Equity (as defined in Paragraph
13(f)) as of the purchase date. If either: (1) Lessor shall reject such offer
by notice given to Lessee not later than the 5th day prior to the

                                       20
<PAGE>
Termination Date or (2) the Termination Date occurs during an Extended Term,
this Lease shall terminate on the Termination Date except with respect to
obligations and liabilities of Lessee hereunder, actual or contingent, which
have arisen on or prior to the Termination Date, upon payment by Lessee of all
Basic Rent, Additional Rent and other sums then due and payable hereunder to
and including the Termination date, and the net proceeds of the condemnation
award shall belong to Lessor. Lessor may reject Lessee's offer to purchase only
if the principal, accrued interest, prepayment premium and other indebtedness,
if any, due under the Mortgage Note has been paid in full and, if the Mortgage
has been foreclosed, the period of redemption has run, or the Mortgagee has
consented in writing to Lessor's rejection of Lessee's offer to purchase and
Lessor has purchased the fee interest in the Land from the Ground Lessor
pursuant to Paragraph 28 of the Ground Lease. Unless Lessor shall have rejected
such offer in accordance with this Paragraph 13(c), Lessor shall be
conclusively presumed to have accepted such offer, and, on the Termination
Date, shall convey Lessor's entire right, title and interest in the Premises to
Lessee or its designee and shall assign to Lessee or its designee all Lessor's
interest in the net proceeds of the condemnation award; and Lessee shall pay to
Lessor the purchase price as above described; provided, that if the Mortgage
has not been satisfied, the purchase price shall be paid to the Mortgagee to
the extent necessary to satisfy the indebtedness secured thereby, and if the
closing occurs during the period of redemption pursuant to foreclosure of the
Mortgage, the purchase price shall be paid to the purchaser at foreclosure to
the extent necessary to effect a redemption.

     (d)  Upon the occurrence of any partial or total loss, damage or
destruction to the Premises, Lessee shall give written notice thereof to Lessor
and promptly commence and shall diligently complete, or cause to be commenced
and diligently completed,

                                       21
<PAGE>
the repair and restoration of the Premises so that, to the extent possible,
upon the completion of such repair or restoration the Improvements will
constitute an entire architectural unit which will have a commercial value as
nearly as practicable equal to the value of the Premises prior to the damage or
loss. In all cases where the estimated costs of repair or restoration shall
exceed 5% of the then market value of the Improvements (based upon Lessee's
good faith estimate of such market value), Lessee shall submit plans and
specifications to Lessor at least 10 days prior to beginning such repairs or
restorations. If the loss, damage or destruction results from a casualty
covered by a policy or policies of insurance, the insurance proceeds recovered
shall, at the election of Lessee (subject to the provisions of the Mortgage),
either (i) be disbursed from time to time directly to contractors employed to
repair or restore the Premises, or (ii) shall be paid to Lessee to reimburse
it for its expenses incurred in repairing and restoring the Premises upon
submission by Lessee of evidence of completion of and payment for such repair
and restoration. In the event such proceeds are inadequate to reimburse Lessee
for the cost of such repair or restoration, Lessee shall pay any additional
amounts required from its own funds, such amounts to be paid to the relevant
contractors and materialmen prior to disbursement of any of the insurance
proceeds. If the portion of the estimated cost of such repair or restoration
not covered by such proceeds shall exceed 10% of the then market value of the
Improvements (based upon Lessee's good faith estimate of such market value),
and Lessor so requests, Lessee shall obtain and furnish to Lessor a performance
and payment bond with a corporate surety in an amount not less than such
uninsured portion. Subject to the rights of the Mortgagee, any sums remaining
after such repair or restoration shall be the property of Lessor.

                                       22
<PAGE>
     (e)  If a casualty of the nature referred to in Paragraph 13(d) shall
affect all or a substantial portion of the Premises and shall, in Lessee's good
faith judgment, render the Premises unsuitable for restoration and repair for
continued use and occupancy for Lessee's purposes, then Lessee shall, not later
than 30 days after such casualty, deliver to Lessor (i) notice of its intention
to terminate this Lease on the Casualty Termination Date (which "Casualty
Termination Date" is defined as the next Payment Date which occurs after the
later of (A) not less than four months after the delivery of such notice and
(B) ten days after the date of final payment of the insurance proceeds), and
(ii) a certificate of Lessee stating that in the good faith judgment of
Lessee's Board of Directors, such casualty has rendered the Premises unsuitable
for restoration and repair for continued use and occupancy in Lessee's
business. If the Casualty Termination Date occurs during the Primary Term, such
notice shall be accompanied by an irrevocable offer to purchase any remaining
portion of the Premises and the net insurance proceeds, if any, on the Casualty
Termination Date at a price equal to the then unpaid principal balance of, and
accrued interest on, the Mortgage and all other indebtedness secured by the
Mortgage (or, if the purchase occurs during any unexpired redemption period
from foreclosure of the Mortgage, the amount required for redemption) plus
Lessor's Equity (as defined in Paragraph 13(f)) as of the purchase date. If
either (1) Lessor shall reject such offer by notice given to Lessee not later
than the 5th day prior to the Casualty Termination Date or (2) the Casualty
Termination Date occurs during an Extended Term, this Lease shall terminate on
the Casualty Termination Date except with respect to obligations and
liabilities of Lessee hereunder, actual or contingent, which have arisen on or
prior to the Casualty Termination Date, upon payment by Lessee of all Basic
Rent, Additional Rent and other sums then due and payable hereunder to and
including the Casualty

                                       23
<PAGE>
Termination Date, and the net insurance proceeds shall belong to Lessor. Lessor
may reject Lessee's offer to purchase only if the principal, accrued interest,
prepayment premium and other indebtedness, if any, due under the Mortgage Note
have been paid in full and, if the Mortgage has been foreclosed, the period of
redemption has run, or if the Mortgagee has consented in writing to Lessor's
rejection of Lessee's offer to purchase and Lessor has purchased the fee
interest in the Land from the Ground Lessor pursuant to Paragraph 28 of the
Ground Lease. Unless Lessor shall have rejected such offer in accordance with
this paragraph, Lessor shall be conclusively presumed to have accepted such
offer, and, on the Casualty Termination Date, shall convey Lessor's entire
right, title and interest in the Premises to Lessee or its designee and shall
assign to Lessee or its designee all Lessor's interest in the net insurance
proceeds; and Lessee shall pay to Lessor the purchase price as above described;
provided, that if the Mortgage has not been satisfied, the purchase price shall
be paid to the Mortgagee to the extent necessary to satisfy the indebtedness
secured thereby, and if the closing occurs during the period of redemption
pursuant to foreclosure of the Mortgage, the purchase price shall be paid to
the purchaser at foreclosure to the extent necessary to effect a redemption.

     (f) "Lessor's Equity", as used in this Lease, means the greater of (A) the
sum of: (i) Debt Service paid by Lessor to the Mortgagee during the first three
Lease Years of the Primary Term plus rent paid to the lessor under the Ground
Lease during the first three Lease Years of the Primary Term, less Basic Rent
paid by Lessee during said first three Lease Years; (ii) the management fees
and commissions owed through the purchase date whether paid or payable prior or
subsequent to the Primary Term Commencement Date by Lessor to Hunter, Keith,
Marshall & Eaton Incorporated, and in addition thereto, all other reasonable
fees, expenses and lease acquisition costs incurred by Lessor in connection
with this

                                       24

<PAGE>
transaction through the Primary Term Commencement Date which are not defined as
Project Costs in the Development Agreement; and (iii) interest at the rate of
8% per annum, compounded quarterly, on the total amount described in clauses
(i) and (ii) from the date paid by Lessor until the Termination Date; reduced,
however, by 1/26th of such sum for each elapsed year from the end of the third
Lease Year to the Termination Date, and (B) if there has been a foreclosure of
the Mortgage and the period of redemption therefrom has expired without
redemption, the amount which would have been required to redeem from the
foreclosure sale at the end of the redemption period.

     14. Insurance. (a) Lessee will maintain insurance on the Premises of the
following character:

         (i)  Insurance against loss by fire, lightning, vandalism, malicious
     mischief, and other risks from time to time included under "extended
     coverage" policies and customarily insured against with respect to property
     similar to the Premises in amounts sufficient to prevent Lessor or Lessee
     from becoming a co-insurer of any loss; and in any event in amounts not
     less than 100% of the full replacement cost of the Premises above the
     foundations and footings.

         (ii) General public liability insurance against claims for bodily
     injury, death or property damage occurring on, in or about the Premises and
     adjoining streets and sidewalks, in the minimum amounts of $1,000,000 for
     any one accident, and $500,000 for property damage, or in such other
     amounts as from time to time are commonly obtained in the case of property
     located in the Minneapolis/St. Paul area similar to the Premises, when
     occupied by a Lessee having a net worth at the time such determination is
     being made comparable to the net worth of

                                       25

<PAGE>
 Lessee hereunder, but in no event in amounts less than those set forth above.

          (iii) Worker's compensation insurance to the extent required by law.
     Lessee may "self-insure" its Workmen's compensation liability, if, and to
     the extent permitted by applicable law.

          (iv) Such other insurance as is required by the Mortgage.

     Such insurance shall be written by companies with a rating of A+:XV or
     better by Alfred M. Best's Key Rating Guide, or if the same shall be
     discontinued, by companies of approximate net worth and recognized
     financial standing equal to those rated A+ or better, or such other
     companies as may be reasonably acceptable to Lessor and Mortgagee. The
     insurance required by clauses (i) and (ii) above shall name as insured
     parties Lessor and Lessee as their interests may appear.

          (b) Every such policy (other than any general public liability,
     workmen's compensation or employers' liability policy) shall bear a first
     mortgagee endorsement in favor of Mortgagee and any loss under any such
     policy shall be payable to Mortgagee to be held and applied pursuant to the
     terms of the Mortgage. Every policy referred to in Paragraph 14(a) shall
     provide that it will not be cancelled except after thirty days' written
     notice to both Lessor and Mortgagee and that it shall not be invalidated as
     to Mortgagee by any act or neglect of Lessor or Lessee, nor by any
     condition of or use of the Premises, nor by any foreclosure or other
     proceedings relating to the Premises, nor by change in title to the
     Premises, nor by waiver of subrogation rights by any insured.

          (c) Lessee shall deliver to Lessor and Mortgagee certificates of
     insurance evidencing the existence of all insurance which is required to be
     maintained by Lessee hereunder, such delivery to be made (i) promptly after
     the execution and delivery hereof and

                                       26
<PAGE>
(ii) within at least thirty days prior to the expiration of any such insurance.
Any insurance required hereunder may be provided under blanket policies, and
may contain reasonable deductible clauses, which, at the date hereof, shall not
exceed $10,000 for casualty losses and $10,000 for liability claims.

     (d) To the extent permitted by the terms of the insurance policies
described in subparagraph (a) above, and to the extent benefits are paid under
such policies, Lessor and Lessee do hereby mutually release each other and
their respective officers, agents, employees and invitees, from all claims for
damage or destruction of their respective physical properties situated on or
constituting part of the Premises, if such damage or destruction results from
one or more of the hazards covered by such insurance policies.

     15. Purchase Right.

          (a) Lessee shall have the option to purchase Lessor's Interest in the
Premises upon the expiration of the twentieth (20th) Lease Year of the Primary
Term hereof, and at the expiration of the Primary Term or any Extended Term of
this Lease; provided however, that the option to purchase shall not apply
unless this Lease is in effect as of the dates of exercise and closing, and the
option may not be severed from or assigned independently of this Lease. This
option shall be exercised, if at all, by Lessee giving written notice of its
election to Lessor not later than six (6) months prior to the 20th anniversary
of the commencement of the Primary Term, or to the date upon which the Primary
Term or any Extended Term will expire. Such notice shall specify the date on
which Lessee's purchase hereunder shall be closed, which date shall be within
60 days following the 20th anniversary of the commencement of the Primary Term
or the date upon which the Primary Term  or any Extended Term will expire, as
the case may be. Upon the giving of such notice Lessor shall be bound to sell,
and Lessee shall be bound to purchase the Premises, subject only to the terms,
covenants and conditions provided in this Paragraph 15(a).

                                       27
<PAGE>
     (b) The purchase price to be paid by Lessee to Lessor, if the option to
purchase contained in this paragraph 15 shall be exercised, shall be an amount
equal to the Fair Market Value of the Premises as of the proposed date of
purchase, but the purchase price shall be the greater of said value or the
original Project Costs paid by Owner if Lessee exercises the said option to
purchase in the 20th year of the Primary Term of this Operating Lease; provided
further that if at the time of exercise the Mortgage has been foreclosed but not
redeemed from sale, the purchase shall be at least the amount which would have
been required to redeem at the end of the redemption period.

     (c) For purposes of this Lease the term "Fair Market Value" means the
amount for which Lessor's Interest in the premises could be sold for cash to a
buyer in an arm's-length transaction assuming the seller to be a prudent person
willing to sell but under no compulsion to do so, and the buyer being a prudent
person willing to buy but under no compulsion to do so. The term "Lessor's
Interest in the Premises" shall be and hereby is understood to mean Lessor's
interest under the Ground Lease in all buildings and other improvements located
on or about the Premises and owned by Lessor, but shall not include the value of
the Land or the value of capital improvement enlargements or Additions made to
the Premises by Lessee at its expense after the Primary Term Commencement Date
if such capital improvements or Additions were approved by Lessor prior to the
enlarging of such improvements or the making of such Additions. In the event the
parties hereto are unable to agree upon the Fair Market Value of Lessor's
Interest in the Premises within ninety (90) days of Lessee's notice, either
party shall have the right to submit such question to appraisal in accordance
with the appraisal procedures set forth in the Paragraph 15(d).

     (d) In the event that the parties are unable to agree upon the Fair Market
Value of Lessor's Interest in the Premises

                                       28
<PAGE>
within ninety (90) days of Lessee's notice, either party shall have the
privilege of appointing an appraiser and giving written notice thereof to the
other party. Within thirty (30) days after receipt of such notice, the recipient
thereof shall appoint a second appraiser and give written notice of such
appointment to the other party. Within sixty (60) days after the appointment of
the second appraiser, the appraisers shall execute and deliver to Lessor and
Lessee a report stating the Fair Market Value of Lessor's Interest in the
Premises as of the proposed date of purchase. The report of the appraisers shall
be conclusive upon the parties hereto. In the event the two (2) appraisers thus
selected cannot agree, said two (2) appraisers shall appoint a third appraiser,
and the Fair Market Value of Lessor's Interest in the Premises shall be the
amount determined by said third appraiser.

     In the event the second appraiser is not appointed within the time herein
allowed and notice thereof is given, the report of the first appraiser shall be
conclusive upon the parties hereto. In the event a third appraiser, if any, is
not appointed within the time allowed, either party hereto may apply to a Judge
of the District Court of Ramsey County, Minnesota (and if such Court does not
then exist, then to a judge of an existing Court of comparable jurisdiction),
and such Judge shall appoint the third appraiser.

     Any appraiser appointed under this paragraph shall be a member of the
American Institute of Real Estate Appraisers or of a similar professional
society, and shall have had five (5) years of full time commercial appraisal
experience in the general area in which the Premises are located. Every
appraiser appointed hereunder shall be disinterested in the Premises and shall
have no connection or relationship with either Lessor or Lessee apart from their
employment for such appraisal purposes. The total fees of all appraisers
appointed hereunder shall be paid one-half by Lessor and one-half by Lessee.

                                       29

<PAGE>
     (e)  Notwithstanding the foregoing option in Lessee to purchase Lessor's
Interest in the Premises, Lessor and Lessee agree that, in order for Lessee to
exercise such right, Lessee must either (i) pay off the outstanding
indebtedness of the Mortgage, including accrued interest and any prepayment
penalty or effect the redemption if the Mortgage has been foreclosed and the
period of redemption has not expired, or (ii) with the consent of Mortgagee,
take title subject to the Mortgage, expressly assume all of the terms,
covenants and conditions of the Mortgage and expressly agree to become
personally liable on the Mortgage Note. The Lessee's purchase price under this
Paragraph 15 shall be reduced by (i) the amount of principal and interest, if
any (but not any prepayment penalty), paid by Lessee if Lessee discharges the
Mortgage pursuant to this Paragraph 15 or the redemption price in the event of
redemption, or by (ii) the outstanding principal and interest secured by the
Mortgage as of the date of purchase if Lessee assumes the indebtedness secured
by the Mortgage pursuant to this Paragraph 15.

     16. Procedure Upon Purchase. (a) If Lessee shall purchase Lessor's
Interest in the Premises pursuant to this Lease, Lessor shall convey title
thereto as it existed on the date of the commencement of the term hereof, and
Lessee or its designee shall accept such title, subject, however, to (i) all
charges, liens, security interests and encumbrances attaching thereto on or
after such date which shall not have been created or suffered by Lessor or
which shall be consented to by Lessee; (ii) all applicable laws, regulations,
ordinances and Permitted Encumbrances; and (iii) impositions which are
obligations of Lessee under this Lease; but free of charges, liens, security
interests and encumbrances resulting from acts of Lessor taken without the
consent of Lessee, and free of the Mortgage, unless the same is assumed by
Lessee pursuant to Paragraph 15(e).

                                       30

<PAGE>
     (b) On the date fixed for any purchase of Lessor's Interest in the
Premises hereunder, Lessee shall pay to Lessor the purchase price therefor
specified herein together with all Basic Rent, Additional Rent and other sums
then due and payable hereunder to and including such date of purchase, and
Lessor shall deliver to Lessee a proper deed of conveyance with covenant
against grantor's acts, conveying Lessor's Interest in the Premises to Lessee,
and any other instruments necessary to convey the title thereto described in
Paragraph 16(a), and to assign any other property then required to be assigned
by Lessor pursuant hereto. Lessee shall pay all charges incident to such
conveyance and assignment, including reasonable and necessary fees of Lessor's
counsel, escrow fees, recording fees, title insurance premiums and all
applicable taxes (other than any income or franchise taxes of Lessor) which may
be imposed by reason of such conveyance and assignment and the delivery of said
conveyance and other instruments. Upon the completion of any such purchase but
not prior thereto, this Lease shall terminate, except with respect to
obligations and liabilities of Lessee hereunder, actual or contingent, which
have arisen prior to such date of purchase.

     17. Assignment, Subletting and Attornment.  (a) Lessor shall have the
right to assign its interest in this Lease and in the rentals payable by Lessee
hereunder. Such assignment may be either absolute or as collateral security for
the indebtedness of Lessor to Mortgagee.

     (b) In the event that Lessor makes an assignment pursuant to subparagraph
(a) for collateral purposes, Mortgagee shall not be obligated to perform any
duty, covenant or condition required to be performed by the Lessor under any
terms hereof, but on the contrary, Lessee by its execution hereof acknowledges
and agrees that notwithstanding any such assignment each and all such
covenants, agreements, representations and warranties of Lessor

                                       31
<PAGE>
shall survive any such assignment and shall be and remain the sole liability of
Lessor and of every person, firm or corporation succeeding (by merger,
consolidation, purchase of assets or otherwise) to all or substantially all of
the business assets or goodwill of Lessor. Lessee further acknowledges and
agrees that from and after the receipt by Lessee of written notice from Lessor
or Mortgagee all rents and other sums which are the subject matter of the
assignment shall be paid to Mortgagee at the place of payment designated in
such notice. Lessee's obligations to make payment to Mortgagee pursuant to an
assignment to it is absolute and unconditional and not subject to offset,
defense, limitation or withholding for any reason whatsoever. If at any time
because of court order or judgment, bankruptcy of Lessor or otherwise Lessee is
prevented or prohibited from paying to Mortgagee any Basic Rent or other sums
assigned to Mortgagee pursuant to this Section or is required to pay the same
to any party or parties other than Mortgagee, Lessee shall promptly pay to
Mortgagee an amount equal to the Rent or other sums in question, even if such
payment should result in double payment of any sum due under this Lease. Upon
such assignment, Mortgagee shall have the sole right to exercise all rights,
privileges and remedies (either in its own name or in the name of Lessor for
the use and benefit of Mortgagee) which by the terms of the Lease or by
applicable law are permitted or provided to be exercised by Lessor.

     (c)  Lessee (subject to the provisions of subparagraphs (d), (e) and (f)
hereof) may sublet all or any portion of the Premises or assign its interest
hereunder. Neither any such assignment or sublease by Lessee, nor the assumption
of Lessee's obligations by any assignee as provided below, shall modify or
limit any right or power of Lessor hereunder or affect or reduce any obligation
of Lessee hereunder, and all such obligations shall continue in full effect as
obligations of a principal and not of a

                                       32
<PAGE>
guarantor or surety, as though no assignment or subletting had been made. Lessee
shall not mortgage or pledge its interest in any sublease of the Premises or
the rentals payable thereunder. Any such prohibited mortgage or pledge of any
sublease or assignment thereof shall be void. Lessee shall, within ten days
after the execution of any assignment of its interest hereunder, deliver a
conformed copy thereof to Lessor. In the event of any such assignment, the
assignee shall expressly assume all of Lessee's obligations hereunder in
writing, and such assumption shall be delivered to Lessor at the same time as
the conformed copy of such assignment under the preceding sentence.

     (d)  Lessee shall insert in each sublease provisions to the effect that
(i) such sublease is subject and subordinate to all of the terms and provisions
of this Lease and to the rights of Lessor hereunder and shall terminate in the
event of termination of this Lease, (ii) in the event this Lease shall
terminate before the expiration of such sublease, the sublessee thereunder
will, at Lessor's option, attorn to Lessor and waive any right the sublessee may
have to terminate the sublease or to surrender possession thereunder, as a
result of the termination of this Lease and (iii) in the event the sublessee
thereunder receives a written notice from Lessor or Mortgagee stating that
Lessee is in default under this Lease, sublessee shall thereafter be obligated
to pay all rentals accruing under said sublease directly to the party giving
such notice, or as such party may direct.

     18.  Permitted Contests. Lessee shall not be required to:

     (a)  pay any tax, assessment, levy, fee, water or sewer rent or charge
     referred to in Paragraph 8(a);

     (b)  comply with any statute, law, rule, order, regulation, ordinance or
     other Legal Requirement or Insurance Requirement referred to in Paragraph
     8(b) or 8(c); or

     (c)  discharge or remove any lien, encumbrance or charge referred to in
     Paragraph 9,

                                       33
<PAGE>
so long as Lessee shall contest, in good faith and without expense to Lessor,
the existence, amount or validity thereof by appropriate proceedings which
shall operate during the pendency thereto to prevent

          (i)  the collection of, or other realization upon the tax,
      assessment, levy, fee, water or sewer rent or charge or lien, encumbrance
      or charge so contested,

          (ii)  the sale, forfeiture or loss of the Premises or any part thereof
      or the Basic Rent or any Additional Rent or any portion thereof to satisfy
      the same or to pay any damages caused by any encroachment, hindrance,
      obstruction, violation or impairment,

          (iii)  any interference with use or occupancy of the Premises or any
      part thereof,

          (iv)  any interference with the payment of the Basic Rent or any
      Additional Rent or any portion thereof, and

          (v)  in the case of any statute, law, rule, order, regulation,
      ordinance, or other legal requirement, imposition of any civil or criminal
      liability upon the Lessor.

While any such proceedings are pending, Lessor shall not have the right to pay,
remove or cause to be discharged the tax, assessment, levy, fee, water or sewer
rent or charge or lien, encumbrance or charge thereby contested. Lessee further
agrees that each such contest shall be promptly prosecuted to a final
conclusion. Lessee shall give such reasonable security as may be demanded by
Lessor or the Mortgagee to insure payment of any such contested imposition or
lien. Lessee will pay or cause to be paid and save Lessor harmless from and
against any and all losses, judgments, decrees and costs (including all
reasonable attorneys' fees and expenses) in connection with any such contest
and will, promptly after the final settlement or determination of such

                                       34
<PAGE>
contest, fully pay and discharge the amounts which shall be levied, assessed,
charged or imposed or be determined to be payable therein or in connection
therewith, together with all penalties, fines, interests, costs and expenses
thereof or in connection therewith and perform all acts, the performance of
which shall be ordered or decreed as a result thereof.

     19.  Default Provisions. (a) Any of the following occurrences or acts
shall constitute an "Event of Default" under this Lease: (i) Lessee's failure
to (1) pay any Basic Rent, Additional Rent or other sum required to be paid by
Lessee hereunder and such failure shall continue for ten days after notice to
Lessee of such failure or (2) observe or perform any other provision hereof and
such failure shall continue for thirty days after notice to Lessee of such
failure (provided, that in the case of any such default which cannot be cured
by the payment of money and cannot with diligence be cured within such
thirty-day period, if Lessee shall commence promptly to cure the same and
thereafter prosecute such cure with diligence, the time within which such
default may be cured shall be extended for such period as is necessary to
complete such cure with diligence); or (ii) the filing by Lessee of a petition
in bankruptcy or for reorganization or for an arrangement pursuant to any
federal or state bankruptcy law or any similar federal or state law; or (iii)
Lessee shall be granted relief under the Bankruptcy Code or become insolvent or
shall make an assignment for the benefit of creditors or become unable to pay
its debts generally as they become due, or if a petition or answer proposing
relief under the Bankruptcy Code be filed against the Lessee or proposing its
reorganization pursuant to any federal or state bankruptcy law or any similar
federal or state law shall be filed in any court and Lessee shall consent to or
acquiesce in the filing thereof or such petition or answer shall not be
discharged or denied within ninety days after the

                                       35
<PAGE>
filing thereof; or (iv) the appointment of a receiver, trustee or liquidator of
Lessee or of all or substantially all of the assets of Lessee or of the
Premises or Lessee's estate therein in any proceeding brought by Lessee, or if
any such receiver, trustee or liquidator shall be appointed in any proceeding
brought against Lessee and shall not be discharged within ninety days after
such appointment, or if Lessee shall consent to or acquiesce in such
appointment; or (v) if the Premises shall have been left unoccupied and
unattended for a period of thirty days; or (vi) if any representation or
warranty made by the Lessee herein shall prove to be or have been untrue in any
material respect as of the date of the making thereof.

     (b) If an Event of Default shall have happened and be continuing, Lessor
shall have the right to give Lessee notice of Lessor's intention to terminate
the term of this Lease on a date not less than five days after the date of such
notice. Upon the giving of such notice, the term of this Lease and the estate
hereby granted shall expire and terminate on the specified date as fully and
completely and with the same effect as if such date were the date herein fixed
for the expiration of the term of this Lease, and all rights of Lessee
hereunder shall expire and terminate, but Lessee shall remain liable as
hereinafter provided.

     (c) If an Event of Default shall have happened and be continuing, Lessor
shall have the immediate right, whether or not the term of this Lease shall
have been terminated pursuant to Paragraph 19(b) to re-enter and repossess the
Premises by summary proceedings, ejectment or in any manner Lessor determines
to be necessary or desirable, and to remove all persons and property therefrom.
Lessor shall be under no liability by reason of any such re-entry, repossession
or removal. No such re-entry or repossession of the Premises shall be construed
as an election by Lessor to terminate the term of this Lease unless a notice of
such intention is given

                                       36
<PAGE>
to Lessee pursuant to Paragraph 19(b), or unless such termination is decreed by
a court of competent jurisdiction.

     (d)  At any time or from time to time after the re-entry or repossession of
the Premises pursuant to Paragraph 19(c), whether or not the term of this Lease
shall have been terminated pursuant to Paragraph 19(b), Lessor may (but shall be
under no obligation to) relet the Premises for the account of Lessee, in the
name of Lessee or Lessor or otherwise, without notice to Lessee, for such term
or terms and on such conditions and for such uses as Lessor, in its absolute
discretion, may determine, subject to the provisions of the Ground Lease. Lessor
may collect and receive for Lessee's account any rents payable by reason of such
reletting. Lessor shall not be liable for any failure to relet the Premises or
for any failure to collect any rent due upon any such reletting.

     (e)  No expiration or termination of the term of this Lease pursuant to
Paragraph 19(b), by operation of law or otherwise, and no re-entry or
repossession of the Premises pursuant to Paragraph 19(c) or otherwise, and no
reletting of the Premises pursuant to Paragraph 19(d) or otherwise, shall
relieve Lessee of its liabilities and obligations hereunder, all of which shall
survive such expiration, termination, re-entry, repossession or reletting.

     (f)  In the event of any expiration or termination of the term of this
Lease or re-entry or repossession of the Premises by reason of the occurrence of
an Event of Default, Lessee will pay to Lessor all Basic Rent, Additional Rent
and other sums required to be paid by Lessee to and including the date of such
expiration, termination, re-entry or repossession; and thereafter, until the end
of what would have been the term of this Lease in the absence of such
expiration, termination, re-entry or repossession (whether or not the Premises
shall have been relet) Lessee shall be liable to Lessor for, and shall pay to
Lessor, as liquidated and agreed

                                       37
<PAGE>
current damages all Basic Rent, Additional Rent and other sums which would be
payable under this Lease by Lessee in the absence of such expiration,
termination, re-entry or repossession, less the net proceeds, if any, of any
reletting effected for the account of Lessee pursuant to Paragraph 19(d), after
deducting from such proceeds all Lessor's expenses in connection with such
reletting (including, without limitation, all repossession costs, brokerage
commissions, property management fees, attorney fees and expenses, employees'
expenses, alteration costs and expenses of preparation for such reletting).
Lessee will pay such current damages on the days on which Basic Rent would be
payable under this Lease in the absence of such expiration, termination,
re-entry or repossession, and Lessor shall be entitled to recover the same
from Lessee on each such day.

     (g) At any time after the termination of this Lease pursuant to Paragraph
19(b), whether or not Lessor shall have collected any current damages pursuant
to Paragraph 19(f), Lessor shall be entitled to recover from Lessee and Lessee
will pay to or on demand as and for liquidated and agreed final damages for
Lessee's default (it being agreed that it would be impractical or extremely
difficult to fix actual damages), and in lieu of all current damages provided
in Paragraph 19 (f) beyond the date to which the same shall have been paid, an
amount equal to the excess, if any, of (A) the sum of (i) any past due Basic
Rent or Additional Rent together with a late charge thereon (to the extent
permitted by law) computed from the due date thereof to the date of payment of
such liquidated damages at the rate of twelve percent per annum (or, if lower,
the maximum rate permitted by application law), (ii) the present value of the
aggregate future payments of Basic Rent otherwise payable in respect of the
Premises for the remainder of the Primary Term or any Extended Term then in
effect (regardless of any termination), each such payment

                                        38
<PAGE>
discounted at the rate of four percent per annum (the "Discounted Future Basic
Rent") from the date otherwise payable hereunder to the later of the date to
which Basic Rent shall have been paid or the date to which Lessee shall have
paid current damages pursuant to Paragraph 19(f), together with a late charge
thereon (to the extent permitted by law) computed from the later of such dates
to the date of payment of such liquidated damages at the rate of twelve percent
per annum (or, if lower, the maximum rate permitted by applicable law), and
(iii) the Additional Rent and other charges (as reasonably estimated by Lessor)
which would be payable hereunder from such date for what would have been the
then unexpired current term had the same not been terminated, the Additional
Rent and such other charges to be discounted to the date of payment at the rate
of four percent per annum, calculated on a monthly basis, over (B) the then
Fair Market Rental Value of the Premises for the period from the date of
payment of such liquidated damages to the date which would have been the
expiration date of the then current term had this Lease not been terminated
(after deducting all reasonable estimated expenses to be incurred in connection
with reletting the Premises, including, without limitation, repossession costs,
brokerage commissions, attorneys' fees and expenses and repair and alteration
costs and expenses), discounted to the date of payment at the rate of four
percent per annum calculated on a monthly basis.

     For purposes of this Lease, the term "Fair Market Rental Value" shall be
and hereby is understood to mean the amount for which the Premises could be
leased for the balance of the existing Primary Term or Extended Term in an
arm's-length transaction upon the same terms and conditions (other than Basic
Rent) as this Lease, assuming both the lessor and lessee to be prudent persons
willing to enter into such a lease but under no compulsion to do so. In the
event the parties are unable to agree upon such Fair

                                       39
<PAGE>
Market Rental Value, the question shall be submitted to appraisal in the same
manner set forth in Paragraph 15(d) hereof.

     If any statute or rule of law shall validly limit the amount of such
liquidated final damages to less than the amount above agreed upon, Lessor shall
be entitled to the maximum amount allowable under such statute or rule of law.

     (h) If Lessor shall elect the remedy provided for in Paragraph 19(g),
Lessee shall have the option to immediately prepay all Basic Rent and Additional
Rent for the balance of the then current term, discounted at the rate of four
percent per annum calculated on a monthly basis, as though expressly made
payable in advance prior to the occurrence of such Event of Default. If Lessee
shall exercise such right and shall prepay in full all such Basic Rent and
Additional Rent, Lessee shall thereafter have the right to possession of the
Premises under the terms of this Lease for the entire period in respect of which
Basic Rent and Additional Rent shall have been so prepaid, unless and until a
further Event of Default shall occur, at which time Lessee's right of possession
shall immediately terminate.

     (i) If this Lease is terminated pursuant to this Paragraph 19, Lessee
waives, to the extent permitted by applicable law, (i) any right which may
require Lessor to sell, lease or otherwise use the Premises or any part thereof
in mitigation of Lessor's damages as set forth in this Paragraph 19, (ii) any
right of redemption, re-entry or re-possession, (iii) any right to a trial by
jury in the event of summary proceedings to enforce the remedies set forth in
this Paragraph 19, (iv) the benefit of any laws now or hereafter in force
exempting property from liability for rent or for debt, and (v) any other rights
which might otherwise limit or modify any of Lessor's rights or remedies under
this Paragraph 19.

     (j) The words "re-enter" or "re-entry" as used in this Paragraph 19 are not
restricted to their technical meaning.

                                       40

<PAGE>
     (k) If, during the first three Lease Years of the Primary Term of this
Lease, Lessor shall be in default for 45 days under the terms of the Mortgage
Note, the Lessee shall cure such default within 15 days after notice.
Immediately upon curing such default, Lessee may, at its sole option either: (i)
terminate this Lease by purchasing the Lessor's Interest in the Premises for an
amount equal to the aggregate amount of Debt Service Shortfall paid by Lessor as
of such termination date (Debt Service Shortfall being defined herein as the
quarterly amount by which (i) quarterly Basic Rent payable under the Operating
Lease, minus (ii) quarterly Basic Rent payable under the Ground Lease, is
exceeded by (iii) Lessor's quarterly Debt Service obligation pursuant to the
Mortgage), and by taking title to the Lessor's Interest in the Premises subject
to the Mortgage, expressly assuming and agreeing to be personally liable to
perform all of the terms, covenants and conditions of the Mortgage and to repay,
in the manner therein stated, the indebtedness evidenced by the Mortgage Note;
or (ii) continue this Lease in full force and effect and institute appropriate
proceedings at law or in equity to recover from the Lessor any costs incurred by
Lessee to cure the Lessor's default under the Mortgage Note. Nothing herein
shall be deemed to create in Lessee a right to set off or otherwise deduct any
such amounts from future installments of Basic Rent, Additional Rent, if any, or
other sums due hereunder, except that Lessee shall be entitled to deduct from
each future quarterly installment of Basic Rent the amount by which such Basic
Rent installment exceeds the sum of (i) Lessor's quarterly Debt Service
obligation under the Mortgage Note and (ii) rent payable under the Ground Lease.
In no event shall the aggregate amount of such deductions exceed the total of
the costs incurred by Lessee to cure Lessor's default as provided in clause
(ii), above.

     20. Ground Lease. (a) Lessee will duly and punctually observe and perform,
at its expense, all covenants, terms and

                                       41
<PAGE>
conditions imposed by the Ground Lease upon the lessee thereunder
(excluding the payment of Basic Rent), and to the end that, during the term of
this Lease, Lessor shall have no responsibility for compliance with the
provisions of the Ground Lease and shall be exonerated from all liability
thereunder.

     (b) If any event shall occur which, pursuant to the terms of the Ground
Lease, with or without the passage of time, would enable the lessee under the
Ground Lease to terminate the same, Lessee shall notify Lessor thereof within 5
days after Lessee shall have become aware of the occurrence thereof.
Notwithstanding any such right of termination, Lessor shall take no action so
to terminate the Ground Lease and shall take such action as shall be necessary
to maintain the estate of Lessor in the Premises.

     (c) If any event shall occur which, pursuant to the terms of the Ground
Lease, with or without the passage of time, would enable the lessor under the
Ground Lease (the "Ground Lessor") to terminate the same or to impair or
restrict the rights of the lessee thereunder, Lessee shall notify Lessor within
5 days after Lessee shall have become aware of the occurrence thereof and shall
take such action, other than the payment of Basic Rent due under the Ground
Lease, as shall be necessary to maintain the rights of Lessor in the Premises
and to enable the full enjoyment of such rights as they existed prior to such
impairment or restriction. Lessor shall be entitled, but not obligated, to
participate in such action.

     (d) If (A)(i) the Ground Lease shall terminate for any reason or (ii) the
Ground Lease shall have been rejected or disaffirmed by the lessee thereunder
or any trustee or receiver thereof pursuant to bankruptcy or insolvency law or
other law affecting creditors' rights, and (B) paragraphs 21 and 24(d) of the
Ground Lease do not apply, then Lessee shall attorn to the Ground Lessor. Upon
Ground Lessor's acceptance thereof, Ground

                                       42
<PAGE>
Lessor and Lessee shall continue this Lease in full force and effect as a direct
lease from Ground Lessor to Lessee on the same terms and conditions as this
Lease, including without limitation, the obligation to pay Basic Rent,
Additional Rent and all other sums payable under this Lease for the period after
the termination, rejection or disaffirmance of the Ground Lease, and all of the
terms and conditions of this Lease shall be binding upon Ground Lessor and
Lessee to the same extent as if Ground Lessor and Lessee had been the original
lessor and lessee, respectively, under this Lease.

     21.  Additional Rights of Lessor.  (a) No right or remedy hereunder shall
be exclusive of any other right or remedy, but shall be cumulative and in
addition to any other right or remedy hereunder or now or hereafter existing.
Failure to insist upon the strict performance of any provision hereof or to
exercise any option, right, power or remedy contained herein shall not
constitute a waiver or relinquishment thereof for the future. Receipt by Lessor
of any Basic Rent, Additional Rent or other sum payable hereunder with knowledge
of the breach of any provision hereof shall not constitute waiver of such
breach, and no waiver by Lessor of any provision hereof shall be deemed to have
been made unless the same is in writing and executed by Lessor. Lessor shall be
entitled to injunctive relief in case of the violation, or attempted or
threatened violation, of any provision hereof, or to a decree compelling
performance of any provision hereof, or to any other remedy allowed to Lessor by
law; provided that Lessor shall not be reimbursed for any loss or damage more
than once.

     (b) Lessee hereby waives and surrenders for itself and all those claiming
under it, including creditors of all kinds, (i) any right and privilege which it
or any of them may have to redeem the Premises or to have a continuance of this
Lease after termination of Lessee's right of occupancy by order or judgment of

                                       43

<PAGE>

any court or by any legal process or writ, or under the terms of this Lease, or
after the termination of the term of this Lease as herein provided, and (ii) the
benefits of any law which exempts property from liability for debt or for
distress for rent.

     (c) If either Lessor or Lessee shall be in default in the performance of
any of its obligations hereunder, then the defaulting party shall pay to the
non-defaulting party, on demand, all expenses incurred by the non-defaulting
party as a result thereof, including reasonable attorney fees and expenses. If
Lessor shall be made a party to any litigation commenced against Lessee and
Lessee, at its expense, shall fail to provide Lessor with counsel approved by
Lessor, Lessee shall pay all costs and reasonable attorney fees and expenses
incurred by Lessor in connection with such litigation.

     22. Access. Lessor and its agents may enter upon and inspect the Leased
Premises at reasonable times.

     23. Notices, Offers and Other Instruments. All notices, offers, consents
and other instruments given pursuant to this Lease shall be in writing and shall
be validly given as of the postmarked date thereon when mailed by prepaid
certified or registered mail, return receipt requested, (a) if to Lessor,
addressed to Lessor at its address set forth above, and (b) if to Lessee,
addressed to Lessee at its address set forth above. Lessor and Lessee each may
from time to time specify any address in the United States as its address for
purposes of this Lease by giving fifteen days' notice to the other party in
accordance with this Paragraph 23.

     24. Estoppel Certificates. Each party hereto will, from time to time,
promptly upon request by the other, but not more often than once each six
months, execute, acknowledge and deliver a certificate stating:

                                       44

<PAGE>
          (i)  that this Lease is unmodified and in full effect (or if there
     have been modifications, that this Lease is in full effect as modified, and
     stating the modifications),

          (ii)  the dates, if any, to which the Basic Rent, Additional Rent and
     other sums payable under this Lease have been paid and the amount of the
     Basic Rent currently payable thereunder, and

          (iii)  that no notice of an Event of Default has been received by said
     party under this Lease which has not been cured or, if any Event of Default
     for which notice has been received has not been cured, specifying the
     nature and period of existence thereof and what action said party is taking
     or proposes to take with respect thereto.

Any such certificate may be relied upon by any prospective mortgagee or
purchaser of the Premises, or assignee of Lessee.

     25.  No Merger.  There shall be no merger of this Lease or of the
leasehold estate hereby created with either the Ground Lease or the leasehold
estate thereby created or the fee estate in the Premises by reason of the fact
that the same person acquires or holds, directly or indirectly (whether pursuant
to termination of the Ground Lease or otherwise), this Lease or the leasehold
estate hereby created or any interest in this Lease or in such leasehold estate
as well as either or both (a) the Ground Lease or the estate thereby created or
any interest in the Ground Lease or such leasehold estate or (b) the fee estate
in the Premises or any interest in such fee estate. This Lease is subject to
the non-merger provisions of paragraph 21 of the Ground Lease.

     26.  Surrender.  Upon the expiration or termination of this Lease, Lessee
shall surrender the Premises to Lessor in the condition in which the Premises
were originally received from Lessor, except as repaired, rebuilt, restored,
altered or added to as permitted or required hereby and except for ordinary
wear and

                                       45

<PAGE>
unenforceable, the remaining provisions hereof, or the application of such
provision to persons or circumstances other than those as to which it is invalid
or unenforceable, shall not be affected thereby, and each provision hereof
shall be valid and shall be enforceable to the extent permitted by law. All
provisions contained in this Lease shall be binding upon, inure to the benefit
of, and be enforceable by, the respective successors and assigns of Lessor and
Lessee to the same extent as if each such successor and assign were named as a
party hereto. This Lease may not be changed, modified or discharged except by a
writing signed by Lessor and Lessee and may not be changed, modified,
discharged or terminated without the written consent of Mortgagee, and any
purported change, modification, discharge or termination without such consent
will be of no effect. If pursuant to any provisions of the Lease Lessee assumes
the Mortgage or the indebtedness secured thereby, such assumption shall create
a personal liability to observe and perform the Mortgage and pay the
indebtedness secured thereby even though the Mortgage and the note which it
secures are non-recourse. This Lease shall be governed by and interpreted under
the laws of the State of Minnesota.
     29. Performance by Lessor. In the event of any default in the performance
of any of Lessee's covenants or agreements herein, Lessor may at the option of
Lessor perform the same and the costs thereof, with interest at the same rate as
any first mortgage on the Premises, shall immediately be due and payable from
Lessee to Lessor as additional rent for the Premises, and Lessor shall have a
lien for the repayment of the same to the same extent as for other rent herein
reserved; provided however that if Lessee's default in the performance of any
of Lessee's covenants or agreements is because Lessee contests the amount,
applicability or validity of any tax, assessment, water rate, sewer rent or
other charge and Lessee is deferring payment thereof pursuant to

                                       47
<PAGE>
any right to do so in connection with such contest, Lessee shall prior to the
commencement of such contest deposit with Lessor a cash deposit or other
security satisfactory to Lessor and sufficient in Lessor's judgment to cover
such item together with all interest, penalty and expenses of litigation and
Lessee shall prosecute such contest diligently to completion by appropriate
proceedings, and Lessor may apply such security  to the payment of such item and
charges if at any time the Premises or any part thereof shall be in danger of
being sold, forfeited or otherwise lost.

     30. Schedules. The following are Schedules A, B and C referred to in this
Lease, which Schedules are hereby incorporated by reference herein.

     Schedule A - Description of Premises
     Schedule B - Terms; Basic Rent Payments and Payment Dates; Definitions;
                  Addendum
     Schedule C - Improvements

     31. Offsets for Third Party Rent Payments. If at any time the holder of
the Mortgage has (i) entered into a ground lease of the Land pursuant to
paragraph 24(d) of the Ground Lease and (ii) subleased the Land and leased the
Improvements to a party other than LOL, then, notwithstanding any other
provision of this Lease, LOL may deduct from the amount otherwise payable to
the holder of the Mortgage pursuant to the assignment of rents payable
pursuant to this Lease any amounts actually received by the holder of the
Mortgage from said subtenant.

LESSOR:                                    LESSEE:

ARDEN HILLS ASSOCIATES:                    LAND O'LAKES, INC.:

By /s/ Andrew M. Hunter, III               By /s/ Ralph Hofstad
   -------------------------                  -----------------
   Andrew M. Hunter, III                     President
   GENERAL PARTNER

                                           BY /s/ Geo Radie
                                             -------------------
                                              Treasurer

                                       48
<PAGE>
STATE OF MINNESOTA)
                  ) ss.
COUNTY OF HENNEPIN)

       On this 17th day of June, 1980, before me, a Notary Public, within and
for said County, personally appeared Andrew W. Hunter, III, one of the General
Partners of ARDEN HILLS ASSOCIATES,a Minnesota limited partnership, to me known
to be the person described in and who executed the foregoing instrument and who
acknowledged that he executed the same as his free act and deed and as the free
act and deed of said limited partnership.

                                        /s/ Karen A. Prenevost
                                        ______________________
                                        Notary Public

                                        _______________________
                                        My Commission Expires___________

                                               [seal]

STATE OF MINNESOTA)
                  ) ss.
COUNTY OF HENNEPIN)

       On this 17th day of June, 1980, before me, a Notary Public, within and
for said County, personally appeared Ralph Hofstad and George Radie to me
personally known, who being by me duly sworn, did say that they are the
President and Treasurer of LAND O'LAKES, INC., the corporation named in the
foregoing instrument and that said instrument was signed on behalf of said
corporation by authority of its Board of Directors, and said Ralph Hofstad and
George Radie acknowledged said instrument to be the free act and deed of said
corporation.

                                        /s/ John T. Rebane
                                        _______________________________
                                        Notary Public

                                        _____________County, Minnesota

                                        My Commission Expires__________

                                               [seal]

                                        49
<PAGE>
                                   Schedule A
                               Legal Description

That part of Lot 2, Block 1, LAND O'LAKES ADDITION, according to the recorded
plat thereof, described as follows:

     Commencing at the northwest corner of said Lot 2; thence on an assumed
     bearing of South 89 degrees, 56 minutes 00 seconds East, along the north
     line of said Lot 2, a distance of 541.75 feet to the point of beginning of
     the land to be described; thence on a bearing of SOUTH a distance of 530.22
     feet; thence on a bearing of WEST a distance of 195.00 feet; thence on a
     bearing of SOUTH a distance of 248.00 feet; thence on a bearing of EAST a
     distance of 697.54 feet to a point hereinafter referred to as Point "A";
     thence on a bearing of SOUTH, along a line hereinafter referred to as Line
     "B", a distance of 36.00 feet; thence North 45 degrees 00 minutes 00
     seconds East a distance of 86.27 feet; thence on a bearing of EAST a
     distance of 109.00 feet; thence on a bearing of NORTH 109.00 feet; thence
     North 45 degrees 00 minutes 00 seconds East a distance of 450.28 feet, more
     or less, to the west line of Lot 3, Block 1, LAND O'LAKES ADDITION; thence
     on a bearing of NORTH along said line a distance of 324.66 feet, more or
     less, to the north line of said Lot 2; thence westerly along the north
     line of said Lot 2 a distance of 990.94 feet, more or less, to the point
     of beginning.

Together with an easement for sanitary sewer purposes lying 15.0 feet on each
side of a centerline described as beginning at said Point "A"; thence south
along said Line "B" and its southerly extension a distance of 117.20 feet, more
or less, to the north line of the sanitary sewer easement as dedicated in said
plat of LAND O'LAKES ADDITION and said centerline there terminating. The side
lines of said easement are prolonged or shortened to terminate on the south
line of the above described property and the north line of said sanitary sewer
easement as dedicated in the plat of LAND O'LAKES ADDITION.

Lessor warrants that the leasehold interest granted and conveyed hereby is
subject only to Lessor's fee, state mineral reservations and rights and to the
following additional permitted encumbrances:

1.   The lien of real estate taxes payable in the year 1980 and thereafter.

2.   Levied special assessments.

3.   Easement for electrical transmission line recorded in Book 1901 Ramsey
     County Records, page 520.

4.   Easement for electrical transmission line recorded as Doc. No. 470086.

5.   Easement for electrical transmission line recorded as Doc. No. 554970.

6.   Easement for water main recorded as Doc. No. 653951.

7.   Terms of agreement and consent recorded as Doc. No. 653952.

8.   Platted sewer, water and drainage easements.

9.   Easement for electric transmission recorded as Doc. No. 415512.

<PAGE>
                                   SCHEDULE B

                         Terms; Basic Rent Payments and
                      Payment Dates; Definitions; Addendum

I.  Lease Terms
     1.  The term of this Lease shall consist of an Interim Term, a Primary
Term and certain Extended Terms as set forth below.  The Interim Term shall
commence on the date hereof and shall end on the date immediately preceding the
date when amortization of the loan begins pursuant to the Commitment (the
"Commitment") first dated July 29, 1979 between Owner and Bankers Life
Company, said date of commencement of amortization being herein and therein
defined as the first day of the first calendar quarter after the last advance
under that certain Construction Loan Agreement governing construction of the
Improvements and executed contemporaneously herewith.  In this paragraph "last
advance" means the last advance which is in fact made pursuant to the
Construction Loan Agreement, whether such last advance occurs by reason of full
funding of the loan, exercise by the lender of default remedies, or otherwise.
The Primary Term shall commence on the day after the expiration of the Interim
Term (the Primary Term Commencement Date) and shall end at midnight on the
twenty-ninth (29th) anniversary of the termination of the Interim Term, unless
earlier terminated or extended pursuant to the provisions of this Lease.

     2.  The first Extended Term shall commence on the day next following the
termination of the Primary Term and shall end at midnight on the day preceding
the date which is the fifth (5th) anniversary thereof, unless earlier terminated
pursuant to the provisions of this Lease.

     3.  The second Extended Term shall commence on the day next following
the termination of the first Extended Term and
<PAGE>

shall end at midnight on the day preceding the date which is the fifth (5th)
anniversary thereof, unless earlier terminated pursuant to the provisions of
this Lease.

     4.  The third Extended Term shall commence on the day next following the
termination of the second Extended Term and shall end at midnight on the day
preceding the date which is the fifth (5th) anniversary thereof, unless earlier
terminated pursuant to the provisions of this Lease.

     5.  The fourth Extended Term shall commence on the day next following the
termination of the third Extended Term and shall end at midnight on the day
preceding the date which is the fourth (4th) anniversary thereof, unless earlier
terminated pursuant to the provisions of this Lease.

II.  Basic Rent Payments and Payment Dates

     1.  The rent during the Interim Term ("Interim Rent") shall be $1.00 per
month.

     2.  The annual Basic Rent during the first, second and third Lease Years
of the Primary Term shall be calculated by (i) multiplying the "Project Costs"
by .036, and (ii) adding to the product thus obtained the Basic Rent per annum
payable to the Lessor under the Ground Lease.  Such fixed rent shall be payable
in equal quarterly installments in advance on the first day of each quarter
beginning on the Primary Term Commencement Date.  Project Costs are the total
of all costs incurred in connection with construction of the Improvements
including without limitation all costs incurred under and pursuant to the
construction contracts, all site preparation costs (including on-site and
off-site work and payment to third parties for the value of such work),
architectural fees, engineering fees, Lessor's attorney fees, Lessee's attorney
fees, cost of leasehold improvements, cost of

                                      B-2
<PAGE>
labor and materials including profit and overhead paid by or payable to the
general contractor and all sub-contractors, loan commitment fees, construction
loan interest, service fees, construction lenders and permanent lenders charges
including attorney fees, consultant fees, title insurance premiums, recordation
fees, real estate taxes during construction, special assessments, insurance and
bond premiums, utility charges and building permit fees. Project Costs shall
not include the cost of cafeteria, food service and consumer test kitchen
equipment or the cost of the telephone and switchboard system.

     2.1  In the event that the Mortgage proceeds are not sufficient to pay all
Project Costs, then Lessor shall pay such Project Costs.

     3.  The annual Basic Rent for Lease Years after the third Lease Year of
the Primary Term through the end of the Primary Term shall be calculated by: (i)
multiplying the Project Costs by .1057, and (ii) adding to the product thus
obtained the Basic Rent per annum payable under the Ground Lease.  Such fixed
rent shall be payable in equal quarterly installments in advance on the first
day of each quarter.

     4.  Each installment of Basic Rent during each of the Extended Terms, as
the same is exercised by Lessee pursuant to paragraph 4 of this Lease, shall be
calculated by: (i) multiplying the Project Costs by .08, and (ii) adding to the
product thus obtained the Basic Rent per annum payable under the Ground Lease.
Such fixed rent shall be payable in equal quarterly installments in advance on
the first day of each quarter.

     5.  The foregoing calculations to the contrary notwithstanding, during
each year of the Primary Term after the third year of the Primary Term, Basic
Rent shall never be less than the

                                        B-3
<PAGE>
amount necessary to pay in advance the then current installments on the debt
secured by the Mortgage, plus $15,007 (said later sum being an annual amount).

III. Definitions

     1. "Lease Year" shall mean each 12 month period commencing on the Primary
Term Commencement Date and each anniversary thereof, all or any portion of
which occurs during the Primary Term or any Extended Term.

     2. "Primary Term Commencement Date" shall be determined in accordance with
paragraph I of this Schedule B.

IV. Addendum
     On the Primary Term Commencement Date, the parties shall enter into an
addendum to this Lease setting forth the dollar amount of Basic Rent and the
calendar date of the said Primary Term Commencement Date.

                                        B-4
<PAGE>
                                   SCHEDULE C

                                  Improvements

     The office building containing approximately 220,000 gross square feet and
the certain research and development facility containing approximately 65,000
square feet, to be constructed on the Land by Lessor in accordance with the
plans and specifications prepared by The Architectural Alliance, Incorporated,
(the "Architect") as the same way from time to time be modified with the
written consent of the Lessee pursuant to the Agreement between Lessee and the
Architect dated June 11, 1980, and all parking areas, landscaping, roads,
fencing and structures now or hereafter located on the land and owned by Lessor.<PAGE>

                                                                    Exhibit 10.8

GROUND LEASE, dated as of May 31, 1980, ("this Lease"), between LAND O'LAKES,
INC., a Minnesota corporation (herein, together with its successor and assigns,
called "Lessor") having an address at 614 McKinley Place, Minneapolis, Minnesota
55413, and ARDEN HILLS ASSOCIATES, a Minnesota limited partnership, (herein,
together with its successors and assigns, called "Lessee") having an address at
4162 IDS Center, Minneapolis, Minnesota 55402.

1.   CERTAIN DEFINITIONS

     (a) The term "Development Agreement" means that certain Development
Agreement of even date herewith between Land O'Lakes, Inc. and Arden Hills
Associates. Unless otherwise specifically defined herein, capitalized terms used
in this Lease shall have the respective meanings ascribed to them in the
Development Agreement.

     (b) The term "Improvements" shall have the meaning ascribed to it in the
Development Agreement.

     (c) The term "Lessee" means, the lessee in possession under this Lease and
shall include any successor assignee of Lessee's interest in this Lease.

     (d) The term "Lessee's Estate" means, all the right, title and interest of
Lessee in the Leased Premises, as defined in Paragraph 2(a).

     (e) The term "Lessor's Estate" means, all the right, title and interest of
Lessor in the Leased Premises.

<PAGE>
     (f)  The term "Mortgage" means the mortgage from Lessee to Bankers Life
Company or its assigns creating a first lien on the Lessee's Estate and the
Improvements.

     (g)  The term "Mortgagee" means the mortgagee or a beneficiary under the
Mortgage.

     (h)  The term "Project" means the Leased Premises and the Improvements,
collectively.

     (i)  The term "LOL Sublease" means the lease of the Improvements and
sublease of the Leased Premises to LAND O'LAKES, INC. to be executed
contemporaneously herewith as the "Operating Lease".

     (j)  The term "LOL Sublessee" means the lessee under the LOL Sublease.

     (k)  The term "Sublease" means any lease of the Improvements and sublease
of the Leased Premises other than the LOL Sublease.

     (l)  The term "Sublessee" means any lessee under a Sublease.

     (m)  The term "Note" means the promissory note, the repayment of which is
secured by the Mortgage.

2.   DEMISE OF PREMISES

     (a)  In consideration of the rents and covenants herein stipulated to be
paid and performed and upon the terms and

                                       2

<PAGE>
conditions hereinafter specified, Lessor hereby demises and lets to Lessee, for
the term hereinafter described, the premises (such premises hereafter denoted
the "Leased Premises") consisting of

          (i)  the parcel of land described in Schedule A-1 hereto, and

          (ii) all easements, rights and appurtenances relating to such parcel,
     but not including the Improvements.

     (b)  Lessee shall improve the Leased Premises through the construction of
the Improvements, which shall be completed in accordance with the Plans and
Specifications as the same may be amended by Lessor as provided in Paragraph
3.01 of the Development Agreement. Such Improvements shall be completed in a
good and workmanlike manner, and shall be completed expeditiously in compliance
with all laws, ordinances, orders, rules, regulations and requirements
applicable thereto. All work done in connection with such Improvements shall
comply with the requirements of any insurance policy required to be maintained
by Lessee hereunder. Lessee shall promptly pay all costs and expenses of such
Improvements, shall discharge all liens (including the Mortgage but only to the
extent of the lessor's portion of the "Debt Service" [as defined in Paragraph
13(b) of the LOL Sublease] during the first three years of the Primary Term
thereof, and the Basic Rent received from the lessee under the LOL Sublease or
any other Sublease) filed against the Leased Premises arising out of the same
and shall procure and pay for all permits and licenses required in connection
with such Improvements. Lessee shall deliver to Lessor immediately after
substantial completion of such construction a Certificate duly executed on
behalf of Lessee to the effect that

                                       3
<PAGE>
          (i)   such construction has been completed in a manner satisfactory to
     it; and

          (ii)  all building permits and certificates of occupancy, if any are
     required, have been obtained and that all applicable zoning and use laws,
     ordinances, regulations and agreements permit the use of the Project, for
     the purposes contemplated.

3.   TITLE AND CONDITION

The Leased Premises are demised and let subject to
          (i)   the rights of any parties in possession thereof and the
     existing state of the title thereof as of the commencement of the term of
     this Lease,

          (ii)  any state of facts which an accurate survey or physical
     inspection thereof might show, and

          (iii) all zoning regulations, restrictions, rules and ordinances,
     building restrictions and other laws and regulations now in effect or
     hereafter adopted by any governmental authority having jurisdiction over
     the Property.

4.   USE OF PROPERTY; QUIET ENJOYMENT

     (a)  Lessee may occupy and use the Project for any lawful purpose.

     (b)  If, and so long as, Lessee shall observe and perform all covenants,
agreements and obligations required to be observed and performed by it
hereunder, Lessor warrants peaceful and quiet

                                       4
<PAGE>
occupation and enjoyment of the Loaded Premises by Lessee; however, Lessor and
its agents may enter upon and inspect the Leased Premises at reasonable times.

5.   TERM

     Subject to the other terms, covenants, agreements and conditions contained
herein, Lessee shall have and hold the Leased Premises for a term which shall
commence and expire on the dates set forth in Schedule B hereto, subject to
extension as therein provided.

6.   RENT

     (a) Lessee covenants to pay to Lessor, as rent for the Leased Premises
during the term of this Lease, the respective amounts set forth in Schedule B
hereto (herein called the "Basic Rent") on the dates set forth in Schedule B
(herein called the "Basic Rent Payment Dates") in lawful money of the United
States of America at Lessor's address set forth above or at such other place or
to such other person as Lessor from time to time may designate by notice.

     (b) Notwithstanding anything to the contrary herein or in Schedule B, if
an Event of Default under the LOL Sublease (as defined in Paragraph 19 thereof)
shall have occurred and be continuing, the Basic Rent payable under this Lease
shall be reduced, as of the date of such Event of Default, to $1.00 per annum,
payable in arrears on each succeeding anniversary of the date of such Event of
Default. Upon cure of such Event of Default satisfactory to the LOL Sublessor
and the Mortgagee, the payment of Basic Rent hereunder shall resume in
accordance with

                                       5
<PAGE>
Schedule A. If the LOL Sublease is terminated by reason of a failure to cure
such Event of Default, Basic Rent payable hereunder shall remain at $1.00 per
annum for the remainder of the term of this Lease.

     (c) Lessee covenants to pay and discharge, when the same shall become due,
as additional rent, all other amounts, liabilities and obligations which Lessee
assumes or agrees to pay or discharge pursuant to this Lease, together with
every fine, penalty, interest and cost which may be added for non-payment or
late payment thereof and, in the event of any failure by Lessee to pay or
discharge any of the foregoing, Lessor shall have all rights, powers and
remedies provided herein, by law or otherwise in the case of non-payment of the
Basic Rent (provided, however, that amounts payable as liquidated damages
pursuant to Paragraph 17 shall not constitute additional rent).

7.   NET LEASE; NON TERMINABILITY

     This Lease is a net lease, and, except as otherwise expressly provided
herein, any present or future law to the contrary notwithstanding, Lessee shall
not be entitled to any abatement, reduction, set-off, counterclaim, defense or
deduction with respect to any Basic Rent, additional rent or other sum payable
hereunder, nor shall the obligations of Lessee hereunder be affected, except as
otherwise expressly provided herein, by reason of: any damage to or destruction
of the Leased Premises; any taking of the Leased Premises or any part thereof by
condemnation or otherwise; any prohibition, limitation, restriction or
prevention of Lessee's use, occupancy or enjoyment of the Leased Premises, or
any interference with such use, occupancy or enjoyment by any person; any
eviction by paramount

                                       6
<PAGE>
title or otherwise, any default by Lessor hereunder or under any other
agreement, the impossibility of illegality of performance by Lessor, Lessee or
both; any action of any governmental authority; or any other cause whether
similar or dissimilar to the foregoing. The parties intend that the obligations
of Lessee hereunder shall be separate and independent covenants and agreements
and shall continue unaffected unless such obligations shall have been modified
or terminated pursuant to an express provision of this Lease.

8.   TAXES AND ASSESSMENTS; COMPLIANCE WITH LAW

     (a) Lessee shall pay: (i) all taxes, assessments, levies, fees, water and
sewer rents and charges, and all other governmental charges, general and
special, ordinary and extraordinary, foreseen and unforeseen, which are, at any
time payable, imposed or levied upon or assessed during the term hereof, against
(A) the Project, (B) any Basic Rent, additional rent or other sum payable
hereunder or (C) this Lease or the leasehold estate created hereby or which
arises in respect of the operation, possession or use of the Project; (ii) all
gross receipts or similar taxes imposed or levied upon, assessed against or
measured by any Basic Rent, additional rent or other sum payable hereunder;
(iii) all sales, use and similar taxes at any time levied, assessed or payable
on account of the acquisition, construction, leasing or use of the Project; and
(iv) all charges for utilities serving the Project. Lessee shall not be required
to pay any franchise, estate, inheritance, transfer, income or similar tax of
Lessor (other than any tax referred to in clause (ii) above). Lessee will
furnish to Lessor, promptly after demand therefor, proof of payment of all items
referred to above which are payable by Lessee. If any such assessment may
legally be paid

                                       7
<PAGE>
in installments, Lessee may pay such assessment in installments; in such event,
Lessee shall be liable only for installments which become due and payable during
the term hereof.

     (b) Lessee shall comply with and cause the Project to comply with all
federal, state, county, municipal and other governmental statutes, laws, rules,
orders, regulations, ordinances, judgments, decrees and injunctions affecting
the Project or the use or alteration thereof, whether now or hereafter enacted
and in force, including any which may (i) require repairs, modifications or
alterations in or to the Improvements or (ii) in any way limit the use and
enjoyment thereof, and all permits, licenses and authorizations and regulations
relating thereto and covenants, agreements, restrictions and encumbrances
contained in any instrument, either of record or known to Lessee, at the time in
force affecting the Project, not including, however, the covenants contained in
the Mortgage, or covenants made or entered into by Lessor after the execution of
this Lease, unless otherwise specifically required pursuant to the terms of this
Lease (collectively the "Legal Requirements").

     (c) Lessee shall comply with and cause the Project to comply with the terms
of any insurance policy covering or applicable to the Project which Lessee is
required to maintain pursuant to this Lease and all requirements of the issuer
of any such policy (collectively, the "Insurance Requirements").

9.   LIENS

     Lessee will not directly or indirectly create or permit to be created or to
remain, and will promptly discharge, at its expense, any mortgage, lien,
encumbrance or charge on, pledge of, or conditional sale or other title
retention agreement with

                                       8

<PAGE>
respect to the Project or any part thereof or Lessee's interest therein or the
Basic Rent or additional rent payable under this Lease (other than the Mortgage,
Permitted Encumbrances as defined in Schedule A-2 attached hereto, and any
mortgage, lien, encumbrance or other charge on, pledge of, or conditional sale
or any other title retention agreement created by or resulting from any act of
or failure to act by Lessor). The existence of any mechanic's, laborer's,
materialman's, supplier's or vendor's lien, or any right in respect thereof,
shall not constitute a violation of this Paragraph 9, if payment is not yet due
upon the contract or for the goods or services in respect of which any such lien
has arisen. Nothing contained in this Lease shall be construed as constituting
the consent or request of Lessor, expressed or implied, to or for the
performance of any labor or services or the furnishing of any goods or materials
by any contractor, sub-contractor, laborer, materialman or vendor.

10.  INDEMNIFICATION

     Lessee shall defend all actions against Lessor with respect to, and shall
pay, protect, indemnify and save harmless Lessor from and against, any and all
liabilities, losses, damages, costs, expenses (including reasonable attorneys'
fees and expenses), causes of action, suits, claims, demands or judgements of
any nature arising from (i) injury to or death of any person, or damage to or
loss of property, on the Project or on adjoining sidewalks, streets or ways, or
connected with the use, condition or occupancy of any thereof, (ii) Lessee's
violation of this Lease, (iii) any act or omission of Lessee or its agents,
contractors, licensees, sublessees or invitees, and (iv) any contest referred to
in Paragraph 16.

                                       9
<PAGE>
11.  MAINTENANCE AND REPAIR

     Lessee will maintain the Project at its expense in good repair and
condition, except for ordinary wear and tear, and will make with reasonable
promptness all structural and non-structural, foreseen and unforeseen and
ordinary and extraordinary changes and repairs which may be required to keep the
Project in good repair and condition. Lessor shall not be required to maintain,
repair or rebuild the Improvements or to maintain the Project, and Lessee waives
the right to make repairs at the expense of Lessor pursuant to any law at any
time in effect.

12.  ALTERATIONS, ADDITIONS, REPLACEMENTS AND SUBSTITUTIONS

     (a)  Lessee may, without expense to Lessor, make additions to and
alterations of the Improvements at any time located or constructed on the
Project, and Lessee may make substitutions and replacements for the same,
provided that

          (i) the market value of the Project shall not be diminished by reason
      of any such addition, alteration, substitution or replacement,

         (ii) the foregoing actions shall be performed in a good and
      workmanlike manner, and

        (iii) such additions, substitutions and replacements shall be
      expeditiously completed and shall comply with all laws, ordinances,
      orders, rules, regulations and requirements applicable thereto.

Lessee shall promptly pay all costs and expenses of each such addition,
alteration, substitution or replacement, and subject to

                                       10
<PAGE>
Paragraph 9, shall discharge all liens filed against the Project arising out of
the same. Lessee shall procure and pay for all permits and licenses required in
connection with any such addition, alteration, substitution or replacement.

     (b)  Lessee may, at its expense,

          (i)  construct upon the Leased Premises additional buildings,
     structures or other improvements and

          (ii) install, assemble or place upon the Leased Premises any items of
     machinery or equipment used by or useful to Lessee,

in each case upon compliance with all the terms and conditions set forth in
Paragraph 12(a).

13.  CONDEMNATION

     (a)  If a portion of the Project shall be taken in or by condemnation or
other eminent domain proceedings pursuant to any law, general or special,
Lessee, at its expense, shall repair (in conformity with the requirements of
Paragraph 12(a)) any damage to the Project caused by such taking promptly after
such taking so that, after the completion of such repair, the Project shall be,
as nearly as practicable, in the same condition as immediately prior to such
taking; provided, however, that Lessee's obligation to repair shall not be
deemed to be greater than the obligation of the lessee under paragraph 13(b) of
the LOL Sublease.

     (b)  Except as otherwise specifically provided herein, if a portion of the
Leased Premises shall be taken as aforesaid, this Lease shall continue but the
Basic Rent thereafter payable by Lessee shall be reduced from the date of each
such partial taking by an amount equal to the product of the Basic Rent payable
at the

                                       11

<PAGE>
time of such taking multiplied by a fraction, the numerator of which is the area
of the Leased Premises taken and the denominator of which is the area of the
Leased Premises immediately prior to such taking.

     (c)  If the entire Leased Premises shall be taken in or by condemnation or
other eminent domain proceedings under any law, general or special (other than a
taking for temporary use), Lessee shall not be required to repair the Project
pursuant to Paragraph 12(a), and this Lease shall terminate on the date of the
taking, except with respect to obligations and liabilities of Lessee under this
Lease, actual or contingent, which have arisen on or prior to such date of
termination, upon payment by Lessee of

          (i)  all Basic Rent due with respect to the period during which this
     Lease is in effect, and

          (ii) all other sums due and payable by it under this Lease to and
     including such date.

     (d)  If there shall be a taking (other than a taking for temporary use)
under such proceedings of any portion of the Project, and if (i) the LOL
Sublease is terminated pursuant to Paragraph 13(c) thereof, or (ii) (A) the
portion of the Project taken is so substantial in the good faith judgment of
Lessee, as to render the remaining portion thereof uneconomic for restoration or
repair for Lessee's continued use or occupancy and (B) if the Mortgage is in
effect or the period of redemption from foreclosure thereof is running, Lessee
gets written consent to termination of this Lease from the Mortgagee or the
purchaser at foreclosure, as the case may be, then Lessee, at its election, may
give written notice to Lessor terminating this Lease on any date for the payment
of Basic Rent after the date of such taking (but not less than ninety (90) days
after such taking) provided that any sublease of all of the Project (or if there
is no sublease of all

                                       12
<PAGE>
of the Project, all subleases) shall have terminated on or by such date, and
this Lease shall terminate as of the date specified in such notice.

     (e)  All net awards and payments received on account of any taking of the
Project in condemnation or other eminent domain proceedings (after
reimbursement of all attorney fees and other costs incurred in connection with
such proceedings) shall be paid as follows:

          (i)   in accordance with the terms of the Mortgage without amendment
     from the form and terms of the Mortgage as it exists on the date hereof.

          (ii)  to the extent permitted by the Mortgage, to the LOL Sublessee
     under the LOL Sublease in reimbursement of its costs of repair or
     restoration, if any;

          (iii) if on account of the Improvements, and to the extent required by
     the Mortgage, to the Mortgagee;

          (iv)  and the balance (if any), if on account of the Leased Premises,
     to Lessor, and, if on account of the Improvements, to Lessee; or

          (v)   if the award has not been so allocated by the condemning
authority or the court before which such action is pending, any portion of the
award not applied under subparagraphs (ii) and (iii) of this Paragraph 13(e)
shall be shared by Lessor and Lessee in proportion to the fair market value of
the Leased Premises and the Improvements, respectively, determined as of the
date prior to such taking as if this Lease had not been and would not be
terminated by reason of such taking. If Lessor and Lessee are unable to agree
upon such respective values, such

                                       13

<PAGE>
     values shall be determined by appraisal within a reasonable time in
     accordance with Paragraph 25, and the fees for such appraisal shall be
     deducted from the awards and payment made with respect to the Project prior
     to the disbursement of such awards and payments in accordance with this
     clause; provided, however, that all payments to be made under this
     Paragraph 13(e) shall be subject to the provisions of the LOL Sublease and
     the Mortgage, as long as the same are in effect. All amounts payable
     pursuant to any agreement with any condemning authority which has been made
     in settlement of or under threat of such taking shall be deemed to
     constitute an award made in such proceeding.

     (f)  In the event of a taking in or by such proceedings of all or any
portion of the Leased Premises for temporary use, this Lease shall continue in
full effect without reduction or abatement of Basic Rent and additional rent,
and Lessee, subject to the provisions of the LOL Sublease and the Mortgage, as
long as the same are in effect, shall be entitled, after paying the reasonable
expenses of Lessor, Lessee and the Mortgagee incurred in collecting the same, to
make claim for, recover and retain any awards or proceeds made on account
thereof, whether in the form of rents or otherwise, unless such period of
temporary use or occupancy shall extend beyond the term of this Lease, in which
case such awards or proceeds, after deducting the cost of repairs made to the
Improvements by Lessee by reason thereof, shall be apportioned between Lessor
and Lessee as of such date of expiration of the term of this Lease.

14.  CASUALTY

     (a)  In the event of a partial casualty loss of or damage to the Project,
Lessee, at its expense, promptly shall repair (in conformity with the
requirements of Paragraph 12(a)) any damage to

                                       14
<PAGE>
the Project caused by such casualty so that, after the completion of such
repair, the Project shall be, as nearly as practicable, in the same condition
as immediately prior to such taking; provided, however, that Lessee's
obligation to repair shall not be deemed to be greater than the obligation of
the lessee under paragraph 13(d) of the LOL Sublease.

     (b) If a casualty of the nature referred to in Paragraph 14(a) shall
damage or destroy all or a substantial portion of the Project and the LOL
Sublease is terminated pursuant to Paragraph 13(e) thereof, then Lessee, at its
election, may give notice to Lessor of the termination of this Lease on any
date for the payment of Basic Rent after the date of such casualty (but not
less than ninety (90) days after such casualty) provided that any sublease of
all of the Project (or if there is no sublease of all of the Project, all
subleases) shall have terminated on or by such date, and this Lease shall
terminate as of the date specified in such notice. If Lessor so requires, the
termination of this Lease shall not be effective unless and until Lessee has
removed all of the Improvements and restored the Leased Premises to rough grade.

     (c) All net compensation and proceeds received on account of any casualty
with respect to the Project (after reimbursement of all attorney fees and other
costs incurred in connection with and such award or payment) shall be paid as
follows:

         (i) in accordance with the terms of the Mortgage without amendment
     from the form and terms of the Mortgage as it exists on the date hereof;

        (ii) to the extent permitted by the Mortgage, to the LOL Sublessee
     under the LOL Sublease in reimbursement of its costs of repair or
     restoration, if any;

                                       15

<PAGE>
       (iii) if on account of the Improvements, and to the extent required by
     the Mortgage, to the Mortgagee;

        (iv) and the balance (if any), if on account of the Leased Premises, to
     Lessor, and, if on account of the Improvements, to Lessee; or

         (v) if the compensation has not been allocated as provided in clause
     (iv) by the insurance carrier, any portion of the compensation not applied
     under subparagraphs (ii) and (iii) of this Paragraph 4(c) shall be paid to
     Lessee.

15.  ASSIGNMENT, SUBLETTING AND MORTGAGING

      Lessee may assign, transfer, sell, mortgage or pledge the whole or any
part of its interest in this Lease, its interest in the leasehold estate hereby
created and the term hereby demised and let, as security or otherwise, and may
sublet the whole or any part of the Leased Premises. Lessee may also assign,
mortgage or pledge its interest in and to any Sublease, including without
limitation, the LOL Sublease, and the rentals payable thereunder. Any such
assignment, mortgage or pledge of this Lease or of the LOL Sublease shall be
subject in all respects to the Mortgage and the rights of the Mortgagee in
this Lease and the LOL Sublease. Lessee shall, at or prior to the time of any
such assignment, transfer, sale, mortgage, or pledge, give Lessor notice
thereof. Lessor agrees to execute and deliver, at the request of Lessee, an
agreement modifying this Lease and containing such modifications hereof as may
be required by the Mortgagee, provided that such modifications do not

                                       16
<PAGE>
       (i) adversely affect the value of Lessor's interest in the Project or
increase Lessor's liability and/or obligations hereunder,

      (ii) reduce or diminish Lessee's obligations hereunder, or

     (iii) release Lessee from any of its obligations hereunder.

16.  PERMITTED CONTESTS

     Lessee shall not be required to

     (a) pay any tax, assessment, levy, fee, water or sewer rent or charge
referred to in Paragraph 8(a),

     (b) comply with any statute, law, rule, order, regulation, ordinance or
other Legal Requirement or Insurance Requirement referred to in Paragraphs 8(b)
or 8(c), or

     (c) discharge or remove any lien, encumbrance or charge referred to in
Paragraph 9 or 12(a),

so long as Lessee shall contest, in good faith and without expense to Lessor,
the existence, amount or validity thereof by appropriate proceedings which
shall operate during the pendency thereof to prevent

          (i) the collection of, or other realization upon the tax, assessment,
     levy, fee, water or sewer rent or charge or lien, encumbrance or charge so
     contested,

                                       17

<PAGE>
          (ii) the sale, forfeiture or loss of the Project or any part thereof
     or the Basic Rent or any additional rent or any portion thereof to satisfy
     the same or to pay any damages caused by any encroachment, hindrance,
     obstruction, violation or impairment,

          (iii) any interference with the use or occupancy of the Project or any
     part thereof,

          (iv) any interference with the payment of the Basic Rent or any
     additional rent or any portion thereof, and

          (v) in the case of any statute, law, rule, order, regulation,
     ordinance, or other legal requirement, imposition of any criminal liability
     upon the Lessor.

While any such proceedings are pending, Lessor shall not have the right to pay,
remove or cause to be discharged the tax, assessment, levy, fee, water or sewer
rent or charge or lien, encumbrance or charge thereby contested. Lessee further
agrees that each such contest shall be promptly prosecuted to a final
conclusion. Lessee shall give such reasonable security as may be demanded by
Lessor or the Mortgagee to insure payment of any such contested imposition or
lien. Lessee will pay or cause to be paid and save Lessor harmless from and
against any and all losses, judgments, decrees and costs (including all
reasonable attorneys' fees and expenses) in connection with any such contest and
will, promptly after the final settlement or determination of such contest,
fully pay and discharge the amounts which shall be levied, assessed, charged or
imposed or be determined to be payable therein or in connection therewith,
together with all penalties,fines, interests, costs and expenses thereof or in

                                       18
<PAGE>
connection therewith and perform all acts, the performance of which shall be
ordered or decreed as a result thereof.

17.  DEFAULT PROVISIONS

     (a) Any of the following occurrences or acts shall constitute an "Event of
Default" under this Lease: if Lessee, at any time during the continuance of
this Lease (and with regard to subparagraphs (i) and (ii), regardless of the
pendency of any bankruptcy, reorganization, receivership, insolvency or other
proceedings, at law, in equity or before any administrative tribunal, which
have or might have the effect of preventing Lessee from complying with the
terms of this Lease), shall

          (i)  fail to make any payment of Basic Rent, additional rent or other
               sum herein required to be paid by Lessee for ten (10) days after
               written notice thereof, or

          (ii) fail to observe or perform any other provision hereof for thirty
               (30) days after Lessor shall have delivered to Lessee notice of
               such failure (provided that in the case of any default referred
               to in this clause (ii) which cannot be cured by the payment of
               money and cannot with diligence be cured within such thirty (30)
               day period, if Lessee shall commence promptly to cure the default
               with diligence, then upon receipt by Lessor of a certificate duly
               authorized on behalf of Lessee stating the reason that such
               default cannot be cured within thirty (30) days and stating that
               Lessee is proceeding with diligence to cure such default, the
               time within which such failure may be cured shall

                                       19

<PAGE>
                  be extended for such period as may be necessary to complete
                  the curing of the same with diligence), or

           (iii)  file a petition for relief under the Bankruptcy Code or for
                  reorganization thereunder or pursuant to any federal or state
                  bankruptcy law or any similar federal or state law, or if
                  Lessee shall be granted an order for relief under the
                  Bankruptcy Code or become insolvent or shall make an
                  assignment for the benefit of creditors or shall admit in
                  writing its inability to pay its debts generally as they
                  become due, or if a petition or answer proposing relief under
                  the Bankruptcy Code be filed against the Lessee or proposing
                  its reorganization thereunder or pursuant to any federal or
                  state bankruptcy law or any similar federal or state law shall
                  be filed in any court and Lessee shall consent to or acquiesce
                  in the filing thereof or such petition or answer shall not be
                  discharged or denied within 90 days after the filing thereof
                  or if a receiver, trustee or liquidator of Lessee or of all or
                  substantially all of the assets of Lessee or of Lessee's
                  Estate shall be appointed in any proceeding brought by Lessee,
                  or if any such receiver, trustee or liquidator shall be
                  appointed in any proceeding brought against Lessee and shall
                  not be discharged within 90 days after such appointment, or if
                  Lessee shall consent to or acquiesce in such appointment.

Notwithstanding the foregoing, (i) the happening of an act or occurrence
described in this Paragraph 17(a) shall not constitute an Event of Default under
this Lease if the happening of such act or occurrence also constitutes an event
of default on the part of

                                       20

<PAGE>
the LOL Sublessee under the LOL Sublease, and (ii) the events of default
referred to in paragraph 17(a)(iii) shall apply only with respect to the Owner
from time to time of the Lessee's Estate and shall not in any event constitute
an event of default hereunder while the Mortgage remains in effect or any rights
of redemption from foreclosure thereof remain.

     (b)  If an Event of Default shall have happened and be continuing, Lessor
shall have the right at its election then or at any time thereafter while such
Event of Default shall continue, to give Lessee written notice of Lessor's
intention to terminate the term of this Lease on a date specified in such
notice. Upon the giving of such notice, the term of this Lease and the estate
hereby granted shall expire and terminate on such date as fully and completely
and with the same effect as if such date were the date herein fixed for the
expiration of the term of this Lease, and all rights of Lessee hereunder shall
expire and terminate, but Lessee shall remain liable as hereinafter provided.
Unless such notice shall have been given, this Lease shall not terminate,
notwithstanding any default under this Lease and the abandonment of the Project
by Lessee. If an Event of Default shall have happened and be continuing and
Lessee shall have abandoned the Project, Lessor may, at its option, enforce all
of its rights and remedies under this Lease, including the right to receive
Basic Rent, additional rent and all other sums payable hereunder as they become
due. In addition, Lessor shall be entitled to recover from Lessee all costs of
maintenance and preservation of the Leased Premises, and all costs (including
attorney's and receiver's fees), incurred in connection with the appointment of
and performance by a receiver to protect the Leased Premises and Lessor's
interest under this Lease.

                                       21

<PAGE>
     (c) If an Event of Default shall have happened and be continuing, Lessor
shall have the immediate right, whether or not the term of this Lease shall have
been terminated pursuant to Paragraph 17(b), to re-enter and repossess the
Project or any part thereof by force, summary proceedings, ejectment or
otherwise and the right to remove all persons and property therefrom. Lessor
shall be under no liability by reason of any entry, repossession or removal. No
such re-entry or taking of possession of the Project by Lessor shall be
construed as an election on Lessor's part to terminate the term of this Lease
unless a written notice of such intention be given to Lessee pursuant to
Paragraph 17(b), or unless the termination of this Lease be decreed by a court
of competent jurisdiction.

     (d) At any time or from time to time after the repossession of the Project
or any part thereof pursuant to Paragraph 17(c), whether or not the term of this
Lease shall have been terminated pursuant to Paragraph 17(b), Lessor may (but
shall be under no obligation to) relet the Project or any part thereof for the
account of Lessee, in the name of Lessee or Lessor or otherwise without notice
to Lessee, for such term or terms (which may be greater or less than the period
which would otherwise have constituted the balance of the term of this Lease)
and on such conditions (which may include concessions or free rent) and for such
uses as Lessor, in its absolute discretion, may determine, and Lessor may
collect and receive any rents payable by reason of such reletting. Lessor shall
not be responsible or liable for any failure to relet the Project or any part
thereof or for any failure to collect any rent due upon such reletting.

     (e) No expiration or termination of the term of this Lease pursuant to
Paragraph 17(b), by operation of law or otherwise, and no repossession of the
Project or any part thereof

                                        22
<PAGE>
pursuant to Paragraph 17(c) or otherwise, and no reletting of the Project or any
part thereof pursuant to Paragraph 17(d), shall relieve Lessee of its
liabilities and obligations hereunder, all of which shall survive such
expiration, termination, repossession or reletting.

     (f) In the event of any expiration or termination of this Lease or
repossession of the Project or any part thereof by reason of the occurrence of
an Event of Default, Lessee will pay to Lessor the Basic Rent, additional rent
and other sums required to be paid by Lessee to and including the date of such
expiration, termination or repossession; and, thereafter, Lessee shall, until
the end of what would have been the term of this Lease in the absence of such
expiration, termination or repossession, and whether or not the Project or any
part thereof shall have been relet, be liable to Lessor for, and shall pay to
Lessor, as liquidated and agreed current damages

          (i) the Basic Rent, additional rent and other sums which would be
              payable under this Lease by Lessee in the absence of such
              expiration, termination or repossession, less

         (ii) the net proceeds, if any, of any reletting effected for the
              account of Lessee pursuant to Paragraph 17(d), after deducting
              from such proceeds all of Lessor's expenses in connection with
              such reletting (including without limitation, all repossession
              costs, brokerage commissions, attorney's fees, alteration costs
              and expenses of preparation for such reletting).

     Lessee will pay such current damages on the days on which the Basic Rent
would have been payable under this Lease in the absence of such expiration,
termination recovery or repossession,

                                       23
<PAGE>
and Lessor shall be entitled to recover the same from Lessee on each such
day.

     (g) At any time after the termination of this Lease, pursuant to Paragraph
17(b), whether or not Lessor shall have collected any current damages pursuant
to Paragraph 17(f), Lessor shall be entitled to recover from Lessee and Lessee
will pay to or on demand as and for liquidated and agreed final damages for
Lessee's default (it being agreed that it would be impractical or extremely
difficult to fix actual damages), and in lieu of all current damages provided in
Paragraph 17(f) beyond the date to which the same shall have been paid, an
amount equal to the excess, if any, of (i) the sum of (1) any past due Basic
Rent or additional rent together with a late charge thereon (to the extent
permitted by law) computed from the due date thereof to the date of payment of
such liquidated damages at the rate of twelve percent per annum (or, if lower,
the maximum rate permitted by applicable law), (2) an amount equal to the sum of
the future payments of Basic Rent otherwise payable in respect of the Leased
Premises for the remainder of the Primary Term or any Extended Term then in
effect (regardless of any termination), each such future payment discounted at
the rate of four percent per annum (the "Discounted Future Basic Rent") from the
date otherwise payable to the later of (x) the date to which Basic Rent shall
have been paid or (y) the date to which Lessee shall have paid current damages
pursuant to Paragraph 17(f), together with a late charge thereon (to the extent
permitted by law) computed from the later of such dates to the date of payment
of such liquidated damages at the rate of twelve percent per annum (or, if
lower, the maximum rate permitted by applicable law), and (3) the additional
rent and other charges (as reasonably estimated by Lessor) which would be
payable hereunder for what would have been the then unexpired current term had
this Lease not been terminated, such additional rent and such other charges to
be

                                       24
<PAGE>
discounted to the date of payment at the rate of four percent per annum,
calculated on a monthly basis; over (ii) the then Fair Market Rental value of
the Leased Premises for the period from the date of payment of such liquidated
damages to the date which would have been the expiration date of the then
current term had this Lease not been terminated (after deducting all reasonable
estimated expenses to be incurred in connection with reletting the Leased
Premises, including, without limitation, repossession costs, brokerage
commissions, attorneys' fees and expenses and repair and alteration costs and
expenses), discounted to the date of payment at the rate of four percent per
annum calculated on a monthly basis.
     For purposes of this Lease, the term "Fair Market Rental" shall be and
hereby is understood to mean the amount for which the Leased Premises could be
leased for the balance of the term hereof upon the same terms and conditions
(other than Basic Rent) as contained in this Lease, assuming both the lessor
and lessee to be prudent persons willing to enter into such a lease but under
no compulsion to do so. In the event the parties are unable to agree upon such
Fair Market Rental, the question shall be submitted to appraisal in the same
manner set forth in Paragraph 25 hereof.
     If any statute or rule of law shall validly limit the amount of such
liquidated final damages to less than the amount above agreed upon, Lessor
shall be entitled to the maximum amount allowable under such statute or rule of
law.

     (h) If Lessor shall elect the remedy provided for in Paragraph 17(g),
Lessee shall have the option to immediately prepay all Basic Rent and
additional rent for the balance of the then current term, each such payment of
Basic Rent and additional rent to be discounted at the rate of four percent per
annum from the date otherwise payable to the date on which such prepayment is

                                       25
<PAGE>
made, as though the same were expressly made payable in advance prior to the
occurrence of such Event of Default. If Lessee shall exercise such right and
shall prepay in full all such Basic Rent and additional rent, Lessee shall
thereafter have the right to possession of the Leased Premises during the
period in respect of which Basic Rent and additional rent shall have been so
prepaid, unless and until a further Event of Default shall occur, at which time
Lessee's right of possession shall immediately terminate.

     (i) If this Lease is terminated pursuant to this Paragraph 17, Lessee
waives, to the extent permitted by applicable law, (i) any right which may
require Lessor to sell, lease or otherwise use the Leased Premises or any part
thereof in mitigation of Lessor's damages as set forth in this Paragraph 17,
(ii) any right of redemption, re-entry or re-possession (except as provided in
Paragraph 17(h)), (iii) any right to a trial by jury in the event of summary
proceedings to enforce the remedies set forth in this Paragraph 17, (iv) the
benefit of any laws now or hereafter in force exempting property from liability
for rent or for debt, and (v) any other rights which might otherwise limit or
modify any of Lessor's rights or remedies under this Paragraph 17.

     (j) The words "enter", "re-enter", or "re-entry", as used in this
Paragraph 17, are not restricted to their technical meaning.

18. ADDITIONAL RIGHTS OF LESSOR

     (a) No right or remedy herein conferred upon or reserved to Lessor is
intended to be exclusive of any other right or remedy, and each and every
remedy shall be cumulative and in addition to any other right or remedy given
hereunder or now or hereafter existing at law or in equity or by statute,
provided that Lessor shall not be reimbursed for any loss or damage more than
once.

                                       26
<PAGE>
     (b) Failure to insist upon the strict performance of any provision hereof
or to exercise any option, right, power or remedy contained herein shall not
constitute a waiver or relinquishment thereof for the future. Receipt by
Lessor of any Basic Rent, additional rent or other sum payable hereunder with
knowledge of the breach of any provision hereof shall not constitute waiver of
such breach, and no waiver by Lessor of any provision hereof shall be deemed to
have been made unless in writing. Lessor shall be entitled to injunctive relief
in case of the violation, or attempted or threatened violation, of any provision
hereof, or to a decree compelling performance of any provision hereof, or to
any other remedy allowed to Lessor by law.

     (c) Lessee hereby waives and surrenders for itself and all those claiming
under it, including creditors of all kinds, (i) any right and privilege which it
or any of them may have to redeem the Leased Premises or to have a continuance
of this Lease after termination of Lessee's right of occupancy by order or
judgment of any court or by legal process or writ, or under the terms of this
Lease, or after the termination of the term of this Lease as herein provided,
and (ii) the benefits of any law which exempts property from liability for debt
or for distress for rent.

     (d) If Lessee shall be in default in the performance of any of its
obligations hereunder, Lessee shall pay to Lessor, on demand, all expenses
incurred by Lessor as a result thereof, including reasonable attorneys fees and
expenses. If Lessor shall be made a party to any litigation commenced against
Lessee, and Lessee, at its expense, shall fail to provide Lessor with counsel
approved by Lessor, Lessee shall pay all costs and reasonable attorneys fees
and expenses incurred by Lessor in connection with such litigation.

                                        27
<PAGE>
19.  NOTICES

     All notices, demands, requests, consents, approvals and other instruments
required or permitted to be given pursuant to the terms of this Lease shall be
in writing and shall be deemed to have been properly given if

     (a) with respect to Lessor, sent by Registered Mail, postage prepaid,
addressed to Lessor at its address first above set forth, and

     (b) with respect to Lessee, sent by Registered Mail, postage prepaid,
addressed to Lessee at its address first above set forth.

     Lessor and Lessee shall each have the right from time to time to specify
as its address for purposes of this Lease any other address in the United States
of America upon giving fifteen (15) days notice thereof, as herein provided, to
the other party.  A counterpart or conformed copy of each notice required or
permitted to be given hereunder shall also be given to the Mortgagee, if the
Mortgage is then in effect, and to the LOL Sublessee, if the LOL Sublease is
then in effect, sent by Registered Mail, postage prepaid, in each case at the
last address of the Mortgagee or the LOL Sublessee, as the case may be, known to
the party giving such notice.

20.  ESTOPPEL CERTIFICATES

     (a) Lessee will execute, acknowledge and deliver to Lessor, promptly upon
request but not more often than once each six (6) months, a certificate
certifying

                                       28
<PAGE>
          (i)   that this Lease is unmodified and in full effect (or, if there
     have been modifications, that this Lease is in full effect, as modified,
     and stating the modifications),

          (ii)  the dates, if any, to which the Basic Rent, additional rent and
     other sums payable hereunder have been paid and the amount of the Basic
     Rent currently payable, and

          (iii) that no notice has been received by Lessee of any default which
     has not been cured, or, if any default for which notice has been received
     has not been cured, specifying the nature and period of existence thereof
     and what action Lessee is taking or proposes to take with respect thereto.

Any such certificate may be relied upon by any prospective purchaser of the
Leased Premises or any part thereof.

     (b)  Lessor will execute, acknowledge and deliver to Lessee, promptly upon
request, a certificate certifying

          (i)   that this Lease is unmodified and in full effect (or, if there
     have been modifications, that this Lease is in full effect, as modified,
     and stating the modifications),

          (ii)  the dates, if any, to which the Basic Rent, additional rent and
other sums payable hereunder have been paid and the amount of the Basic Rent
currently payable, and

                                       29
<PAGE>
          (iii) that no notice has been given by Lessor or any default which
has not been cured, or if any default for which notice has been given has not
been cured, specifying the nature and period of existence thereof and what
action Lessor is taking or proposes to take with respect thereto.

Any such certificate may be relied upon by any prospective assignee of Lessee's
interest in this Lease or the Mortgagee or any assignee of the Mortgagee.

21.  NO MERGER.

     There shall be no merger of this Lease or the LOL Sublease or of the
leasehold estate created hereby or thereby with the fee estate in the Leased
Premises or any part thereof by reason of the fact that the same person may
acquire or hold, directly or indirectly, whether through termination of this
Lease or otherwise, this Lease or the LOL Sublease or the leasehold estate
created hereby or by the LOL Sublease or any interest in this Lease or the LOL
Sublease or in such leasehold estate(s) and the fee estate in the Leased
Premises or any interest in such fee estate. If while the Mortgage is in effect
or any period of redemption from foreclosure thereof is unexpired, this Lease
is terminated, whether voluntarily, involuntarily or by operation of law,
termination of this Lease shall not terminate the LOL Sublease but shall rather
transfer to Lessor (unless the Mortgagee elects to make a lease pursuant to
subparagraph 24(d) of this Lease) the Improvements, Lessee's Estate and the
Lessor's interest in the LOL Sublease, subject to (i) the non-merger provisions
of this Lease and the LOL Sublease and (ii) the lien of the Mortgage or the
rights of the Purchaser at foreclosure. If the Lessee's Estate is transferred
to Lessor in accordance with the terms of

                                       30

<PAGE>
this paragraph 21, then, notwithstanding any provision or this Lease to the
contrary, all obligations under this Lease with respect to such estate shall be
deemed to have been performed in full, and such Estate shall not be subject to
forfeiture or termination nor shall Lessee be subject to dispossession for any
reason whatever.

22.  SURRENDER

     Upon the expiration or earlier termination of this Lease, Lessee shall
peaceably leave and surrender the Leased Premises to Lessor in the same
condition in which the Leased Premises were originally received from Lessor at
the commencement of the term of this Lease, except as improved, repaired,
rebuilt, restored, altered or added to as provided in, permitted by or required
by any provisions of this Lease and except for ordinary wear and tear and
except as provided in Paragraphs 13 and 14. Lessee shall have the right to
remove from the Leased Premises on or prior to such expiration or earlier
termination all property situated thereon which is not owned by Lessor,
including the Improvements, or, at its election, to allow such property to
remain on the Leased Premises, but Lessee shall be required to repair, at its
expense, any damage to the Leased Premises resulting from any such removal.
Such property not so removed shall become the property of Lessor, and Lessor
may thereafter, at its expense, cause such property to be removed from the
Leased Premises and disposed of.

23.  SEPARABILITY

     Each and every covenant and agreement contained in this Lease is, and
shall be construed to be, a separate and independent covenant and agreement,
and the breach of any such covenant or

                                       31
<PAGE>
agreement by Lessor shall not discharge or relieve Lessee from its obligations
to perform the same. If any term or provision of this Lease or the application
thereof to any person or circumstance shall to any extent be invalid and
unenforceable, the remainder of this Lease, or the application of such term or
provision to persons or circumstances other than those as to which it is invalid
or unenforceable, shall not be affected thereby, and each term and provision of
this Lease shall be valid and shall be enforced to the extent permitted by law.

24. RIGHTS OF MORTGAGEE

     (a) If Lessee shall be in default in the observance or performance of any
covenant in this Lease beyond any applicable period of grace referred to herein,
Lessor shall send written notice of such default to the Mortgagee at its address
set forth in the Mortgage or as the Mortgagee may designate by notice to Lessor.
The Mortgagee shall have 30 days after delivery of such written notice from
Lessor within which to cure or remove such default, except that if such default
cannot with diligence be cured within such 30 day period, the Mortgagee shall
have a reasonable time thereafter to affect cure, provided that the Mortgagee
proceeds promptly to cure the same and thereafter prosecutes the curing of such
default with diligence. Notwithstanding any other provision of this Lease,
Lessor shall not have any right pursuant to this Lease or otherwise to terminate
this Lease due to such default unless Lessor shall have first given written
notice thereof to the Mortgagee and unless the Mortgagee shall have failed to
cure or remove, or cause to be cured or removed, such default within the time
required by this subparagraph (a).

                                       32
<PAGE>
     (b) Lessor will accept performance by the Mortgagee or a sublessee or
either of them of any covenant, agreement or obligation of Lessee contained in
this Lease with the same effect as though performed by Lessee.

     (c) Lessor shall have no rights in and to the rentals payable to Lessee
under any Sublease of all or any part of the Project, which rentals may be
assigned by Lessee to the Mortgagee.

     (d) If this Lease shall be terminated for any reason (other than pursuant
to Paragraphs 13 and 14), or in the event of the rejection or disaffirmance of
this Lease pursuant to bankruptcy law or other law affecting creditor's rights,
Lessor will enter into a new lease of the Leased Premises with the Mortgagee,
or any party designated by the Mortgagee, not less than ten (10) nor more than
thirty (30) days after the request of the Mortgagee referred to below, for the
remainder of the term of this Lease, effective as of the date of such
termination, rejection or disaffirmance, upon all the terms and provisions
contained in this Lease, provided, that the Mortgagee makes a written request
to Lessor for such new lease within ninety (90) days after the effective date
of such termination, rejection or disaffirmance, as the case may be, and such
written request is accompanied by a copy of the new lease, prepared at
Mortgagee's expense, duly executed and acknowledged by the Mortgagee, or the
party designated by the Mortgagee to be the lessee thereunder, and the
Mortgagee cures all defaults under this Lease which can be cured by the payment
of money and pays to Lessor all Basic Rent and additional rent which would at
the time of such execution and delivery be due and payable by Lessee under this
Lease but for such rejection, disaffirmance or termination, less net amounts
received by Lessor under Paragraph 17(d), if any. If the Mortgagee, or the
party so

                                       33
<PAGE>
designated by the Mortgagee, shall have entered into a new lease with Lessor
pursuant to this subparagraph (d), then any default under this Lease which,
because the default is personal to Lessee, hereunder (such as bankruptcy),
cannot reasonably be cured by such new lessee, shall be deemed cured. Any new
lease made pursuant to this subparagraph (d) shall have the same priority of
lien as this Lease and shall be accompanied by a conveyance of Lessor's title,
if any, to the Improvements (free of any mortgage or other lien, charge or
encumbrance created or suffered to be created by Lessor) for a term of years
equal in duration to the term of the new lease. The provisions of this
subparagraph (d) shall survive the termination, rejection or disaffirmance of
this Lease and shall continue in full effect thereafter to the same extent as
if this subparagraph (d) were a separate and independent contract made by
Lessor, Lessee and the Mortgagee and, from the effective date of such
termination, rejection or disaffirmance of this Lease to the date of execution
and delivery of such new lease, the Mortgagee may use and enjoy the leasehold
estate created by this Lease without hindrance by Lessor.

    (e) The rights and remedies afforded the Mortgagee under this Paragraph 24
are cumulative and not exclusive. Specifically, but without limitation, (i) the
Lessee's Estate, LOL Sublease and the Mortgagee's lien upon the Lessee's
Estate, the LOL Sublease and the Improvements shall remain in full force and
effect pursuant to the non-merger provisions of this Lease and the LOL Sublease
in the event of any termination, by operation of law or otherwise, of this
Lease, unless the Mortgagee elects to make a new lease pursuant to subparagraph
24(d) of this Lease, and (ii) Lessor's absolute and unconditional obligation as
lessee under the LOL Sublease to pay Basic Rent and other payments under the
LOL Sublease shall survive any termination or rejection of this Lease

                                       34

<PAGE>
or the LOL Sublease or both, whether or not the Mortgagee elects to take a new
lease pursuant to subparagraph 24(d) of this Lease.

     (f)  Lessor will not accept a voluntary surrender of this Lease. This
Lease shall not be modified or surrendered without the prior written consent of
the Mortgagee and any modification or surrender without such consent shall be
void and of no effect.

     (g)  The provisions of this Paragraph 24 are for the benefit of the
Mortgagee and may be relied upon and shall be enforceable by the Mortgagee.
Neither the Mortgagee nor any other holder or owner of the indebtedness secured
by the Mortgage shall be liable upon the covenants, agreements or obligations
of Lessee contained in this Lease, unless and until the Mortgagee or such
holder or owner becomes the lessee hereunder.

25.  APPRAISERS

     Whenever in this Lease it is provided that any question shall be
determined by appraisers, such questions shall be submitted to a board of
appraisers, three (3) in number, appointed as follows: either party shall have
the privilege of appointing an appraiser and giving written notice thereof to
the other party. Within thirty (30) days after receipt of such notice, the
recipient thereof shall appoint a second appraiser and give written notice of
such appointment to the other party. Within thirty (30) days after the
appointment of the second appraiser, the two (2) appraisers thus selected shall
appoint a third appraiser. Within thirty (30) days after the appointment of the
third appraiser, the appraisers shall execute and deliver to Lessor and
Lessee a report of their decision relating to the question submitted for
appraisal. The report of the appraisers shall be conclusive upon

                                       35
<PAGE>
the parties thereto, and in the event the appraisers cannot agree, the amount
determined by the third appraiser shall be conclusive upon the parties.

     In the event the second appraiser is not appointed within the time herein
allowed and notice thereof is given, the report of the first appraiser shall be
conclusive upon the parties hereto. In the event the third appraiser is not
appointed within the time allowed, either party hereto may apply to the Chief
Judge of the Ramsey County District Court, State of Minnesota, and such Judge
shall appoint the third appraiser. Any appraiser appointed under this paragraph
shall be a member of the American Institute of Real Estate Appraisers or of a
similar professional society, and shall have had five (5) years of full time
commercial appraisal experience in the general area in which the Leased Premises
are located. Every appraiser appointed hereunder shall be disinterested in the
Leased Premises and shall have no connection or relationship with either Lessor
or Lessee apart from their employment for such appraisal purposes. The total
fees of all appraisers appointed hereunder shall be paid one-half by Lessor and
one-half by Lessee, unless made for purposes of allocating funds between the
parties, in which latter case the total fees shall be allocated in proportion to
the amount of funds allocated to each party after deducting therefrom that
portion of the funds paid to reduce or retire the Mortgage.

26.  THE SUBLEASE

          So long as the LOL Sublease shall be in effect:

          (i)  Lessor and Lessee shall not agree between themselves to any
     termination (except as expressly provided in Paragraph 13 or 14 hereof),
     surrender or

                                       36
<PAGE>
     modification of this Lease without the prior written consent of the LOL
     Sublessee;

          (ii)  Lessor will give to the LOL Sublessee a copy of any notice or
     other communication given by Lessor to Lessee at the same time such notice
     or communication is given to Lessee, and Lessor will not exercise any
     right, power or remedy with respect to any default hereunder and no notice
     to Lessee of any default and no termination of this Lease by Lessor in
     connection therewith shall be effective, unless Lessor shall have given to
     the LOL Sublessee written notice or a copy of its notice to Lessee of such
     default or any such termination, as the case may be;

          (iii) Lessor will not exercise any right power or remedy with respect
     to any Event of Default hereunder until the expiration of any grace period
     provided with respect thereto, plus

          (A)  in the case of a default constituting an Event of Default under
               item (i) of Paragraph 17(a), fifteen (15) days after the date
               Lessor has given to the LOL Sublessee written notice of the
               expiration of the applicable grace period with respect to such
               default.

          (B)  in the case of a default constituting an Event of Default under
               item (ii) of Paragraph 17(a), thirty (30) days after the date
               Lessor has given to the LOL Sublessee written notice of the
               expiration of the applicable grace period with respect to such
               default.

                                       37

<PAGE>
          (iv)  Lessor will not exercise any right, power or remedy with respect
     to any default referred to in clause (B) of item (iii), if

          (X)  the LOL Sublease, within the thirty (30) day period referred to
               in clause (B), shall give to Lessor written notice that it
               intends to undertake the correction of such default or to cause
               the same to be corrected, and

          (Y)  the LOL Sublessee shall thereafter prosecute diligently the
               correction of such default;

          (v)  the performance by the LOL Sublessee of any of the terms and
   provisions of this Lease on Lessee's part to be performed shall
   be deemed to be performance thereof by Lessee.

27.  ATTORNMENT OF SUBLESSEE; NO PERSONAL LIABILITY OF LESSEE

     (a)  Lessee shall cause the LOL Sublease to contain language to the
following effect:

     If:

          (i)   the Ground Lease shall terminate for any reason other than as
     specifically provided for in Paragraphs 13 (condemnation) and 14 (casualty)
     thereof, or

          (ii)  the Ground Lease shall have been rejected or disaffirmed by
     Lessee thereunder or any trustee or receiver thereof pursuant to bankruptcy
     or insolvency law

                                       38
<PAGE>
     or other law affecting creditor's rights and if the Mortgagee (or its
     designee) shall not have entered into a new lease or acquired the interest
     of the Lessee thereunder pursuant to Paragraph 24 thereof,

and if in either event the lessor's interest in the LOL Sublease has not been
transferred to Lessor in accordance with paragraph 21 of this Lease the LOL
Sublessee or the Sublessee under any other Sublease which has been approved by
Lessor shall attorn to Ground Lessor. Upon the Ground Lessor's acceptance
thereof, Ground Lessor and such lessee shall continue any such Sublease in full
force and effect as a direct lease from the Ground Lessor to such lessee on the
same terms and conditions of the LOL Sublease or such other approved Sublease,
including without limitation, the obligations to pay Basic Rent, additional rent
and all other sums payable under the LOL Sublease or such other approved
Sublease (as those terms are defined in such Sublease) for the period after the
termination, rejection or disaffirmance of the Ground Lease, and all of the
terms and conditions of such Sublease shall be binding upon the Ground Lessor
and such lessee to the same extent as if Ground Lessor and such lessee had
been the original lessor and lessee, respectively, under the LOL Sublease or
such other approved Sublease.

     (b) Lessor agrees that if the LOL Sublessee or other Sublessee, as the case
may be, shall attorn to Lessor in accordance with the LOL Sublease or such other
approved Sublease, Lessor shall accept such attornment and thereafter continue
any such Sublease in full force and effect as a direct lease from Lessor to such
Sublessee on the same terms and conditions of the LOL Sublease or such other
approved Sublease, including, without limitation, the obligation to pay Basic
Rent, additional rent and

                                       39
<PAGE>
any other sums payable under such Sublease (as those terms are defined in such
Sublease) for the period after the termination, rejection or disaffirmance of
this Lease and that all of the terms and conditions of the Sublease shall be
binding upon Lessor and the Sublessee to the same extent as if Lessor and
Sublessee had been original lessor and lessee, respectively, under the LOL
Sublease or such other approved Sublease.

     (c) Lessee agrees that the provisions of Paragraphs 27(a) and 27(b) shall
be for the benefit of the LOL Sublessee or other Sublessee under an approved
Sublease, and that any such Sublessee may rely thereon in entering into either
such Sublease.

28.  OPTIONS TO PURCHASE

     (a) Provided the LOL Sublessee shall not have purchased the "Lessor's
Interest in the Premises" (as defined in Paragraph 15(c) of the LOL Sublease)
pursuant to Paragraph 13 or 15 of the LOL Sublease, Lessee shall have the right
to purchase the Leased Premises in the event that:

         (1) The LOL Sublease terminates pursuant to Paragraphs 13(c) or 13(e)
     thereof following rejection of the LOL Sublessee's irrevocable offer to
     purchase the "Lessor's Interest in the Premises"; or

         (2) Land O'Lakes, Inc. at any time during the term of this Lease (as
     the same may be extended as provided in Schedule B) ceases to be the lessee
     of the Improvements under the LOL Sublease or any lease entered into in
     accordance with Paragraph 4(b) of the LOL Sublease.

                                       40
<PAGE>
     (b) Lessee's purchase pursuant to the options hereby granted shall be
subject to the following terms and conditions:

          (1) At least 120 days prior written notice shall have been given to
     Lessor; provided, however, that if the purchase option herein granted is
     being exercised pursuant to subparagraph (a) of this Paragraph 28, notice
     of such exercise shall be given at the same time as the rejection of the
     LOL Sublessee's irrevocable offer to purchase, and the closing of the
     purchase pursuant to such exercise shall occur on the earliest practicable
     date following completion of the appraisal hereinafter described.

          (2) The purchase price shall be the fair market value of the Leased
     Premises, such value to be determined by appraisal pursuant to Paragraph 25
     hereof if the parties cannot agree upon such fair market value. For
     purposes of this Paragraph 28, the fair market value of the Leased Premises
     shall be determined as though (p) the Improvements did not exist, and (q)
     the Leased Premises were not encumbered by this Lease.

          (3) Lessor shall convey title subject only to (w) Permitted
     Encumbrances, (x) all charges, liens, security interests and encumbrances
     attaching to the title on or after the commencement of the term hereof
     which were not created by acts of Lessor or which were consented to by
     Lessee, and (y) all applicable laws, regulations, and ordinances.

          (4) Upon the date fixed for any purchase of the Leased Premises or any
     portion thereof under this Paragraph 28, Lessee shall pay to Lessor the
     purchase

                                       41
<PAGE>
       price therefor specified herein together with all Basic Rent, additional
       rent and other sums then due and payable hereunder to and including such
       date of purchase, and Lessor shall deliver to Lessee a conveyance of the
       Leased Premises and any other instruments necessary to convey the title
       thereto. Lessee shall pay all charges incident to such conveyance and
       assignment, including reasonable and necessary counsel fees, escrow fees,
       recording fees, title insurance premiums and all applicable taxes (other
       than any income or franchise taxes of Lessor) which may be imposed by
       reason of such conveyance and assignment and the delivery of said
       conveyance and other instruments. Upon the completion of any such
       purchase of the Leased Premises but not prior thereto, this Lease shall
       terminate, except with respect to obligations and liabilities of Lessee
       hereunder, actual or contingent, which have arisen on or prior to such
       date of purchase.

29.    TITLE TO IMPROVEMENTS

       All Improvements shall be the property of Lessee.

30.    BINDING EFFECT

       All of the covenants, conditions and obligations contained in this Lease
shall be binding upon and inure to the benefit of the respective successors and
assigns of Lessor and Lessee to the same extent as if each such successor and
assign were in each case named as a party to this Lease; and the term "Lessor",
as used in this Lease, shall include any successor owner or owners, at any
time, of the Leased Premises or any part thereof. This Lease may not be changed,
modified or discharged except by a writing signed

                                       42
<PAGE>
by Lessor and Lessee (and consented to by the Mortgagee, if such consent is
required pursuant to Paragraph 24(f) hereof).

31.  SHORT FORM LEASE

     Neither party shall offer this Lease for recordation in the public land
records. Either party, at the written request of the other, shall execute a
short form or memorandum of lease in recordable form which shall contain a
description of the Leased Premises, the length of the term, notice that Lessee
has an option to purchase, and incorporate by reference only, the provisions of
this Lease.

32.  NOVATION IN EVENT OF SALE BY LESSOR

     In the event Lessor sells its interest in the Leased Premises, Lessor
shall thereby be relieved of all of the covenants and obligations created by
this Lease after the sale thereof, and such sale shall result in the assumption
by the transferee or purchaser of all such obligations and covenants of Lessor
hereunder, whether or not the terms of such sale expressly so provide.

33.  INSURANCE

     Lessee shall maintain such insurance coverages on the Improvements as are
commonly obtained and carried by owners or managers of properties in the
Minneapolis-St. Paul metropolitan area similar to the Improvements. Anything
herein to the contrary notwithstanding, Lessee's obligations under this
Paragraph 33 shall be deemed fulfilled if the Lessee under the LOL Sublease
complies with all of the insurance obligations contained therein.

                                       43
<PAGE>
34.  GOVERNING LAW

     This Lease shall be governed by and interpreted under the laws of the
State of Minnesota.

35.  HEADINGS

     The headings to the various paragraphs and schedules of this Lease have
been inserted for reference only and shall not to any extent have the effect of
modifying, amending or changing the expressed terms and provisions of this
Lease.

36.  SCHEDULES

     The following are the Schedules which are referred to in this Lease and
made a part hereof:
          A: Legal Description
          B: Term and Rent

LESSOR:                            LESSEE:
LAND O'LAKES, INC.                 ARDEN HILLS ASSOCIATES

By /s/ Ralph Hofstad               By /s/ Andrew M. Hunter
----------------------------       ----------------------------
     Its President                   General Partner

And /s/ Geo Radie
-----------------------------
     Its Treasurer

                                       44
<PAGE>

STATE OF MINNESOTA  )
                    )
COUNTY OF           )

     On this 7th day of June, 1980, before me, a Notary Public within and for
said County, personally appeared Andrew M. Hunter, III, one of the General
Partners of ARDEN HILLS ASSOCIATES, a Minnesota limited partnership, to me known
to be the person described in and who executed the foregoing instrument and who
acknowledged that he executed the same as his free act and deed and as the free
act and deed of said limited partnership.

                                        /s/ Karen A. Prenevost
                                        --------------------------------------
                                            Notary Public

                                        -------------------- County, Minnesota

                                        My Commission Expires ----------------
                                        [NOTARY SEAL]

STATE OF MINNESOTA  )
                    )
COUNTY OF           )

     On this 17th day of June, 1980, before me, a Notary Public within and for
said County, personally appeared Ralph Hofstad and George Radie to me
personally known, who, being by me duly sworn, did say that they are the
President and Treasurer of LAND O'LAKES, INC., the corporation named in the
foregoing instrument and that said instrument was signed on behalf of said
corporation by authority of its Board of Directors, and said Ralph Hofstad and
George Radie acknowledged said instrument to be the free act and deed of said
corporation.

                                        /s/  John T. Rebane
                                        --------------------------------------
                                        Notary Public

                                        -------------------- County, Minnesota

                                        My Commission Expires ----------------
                                        [NOTARY SEAL]

[LINDQUIST & VENNUM STAMP]
<PAGE>
                                   Schedule A
                               Legal Description
                                 (Ground Lease)

     That part of Lot 2, Block 1, LAND O'LAKES ADDITION, according to the
     recorded plat thereof, described as follows:

          Commencing at the northwest corner of said Lot 2; thence on
          an assumed bearing of South 89 degrees, 56 minutes 00
          seconds East, along the north line of said Lot 2, a distance
          of 541.75 feet to the point of beginning of the land to be
          described; thence on a bearing of SOUTH a distance of 530.22
          feet; thence on a bearing of WEST a distance of 195.00 feet;
          thence on a bearing of SOUTH a distance of 248.00 feet;
          thence on a bearing of EAST a distance of 697.54 feet to a
          point hereinafter referred to as Point "A"; thence on a
          bearing of SOUTH, along a line hereinafter referred to as
          Line "B", a distance of 36.00 feet; thence North 45 degrees
          00 minutes 00 seconds East a distance of 86.27 feet; thence
          on a bearing of EAST a distance of 109.00 feet; thence on a
          bearing of NORTH 109.00 feet; thence North 45 degrees 00
          minutes 00 seconds East a distance of 450.28 feet, more
          or less, to the west line of Lot 3, Block 1, LAND O'LAKES
          ADDITION; thence on a bearing of NORTH along said line a
          distance of 324.66 feet, more or less, to the north line
          of said Lot 2; thence westerly along the north line of said
          Lot 2 a distance of 990.94 feet, more or less, to the point
          of beginning.

     Together with an easement for sanitary sewer purposes lying 15.0 feet
     on each side of a centerline described as beginning at said Point "A";
     thence south along said Line "B" and its southerly extension a
     distance of 117.20 feet, more or less, to the north line of the
     sanitary sewer easement as dedicated in said plat of LAND O'LAKES
     ADDITION and said centerline there terminating. The side lines of said
     easement are prolonged or shortened to terminate on the south line of
     the above described property and the north line of said sanitary sewer
     easement as dedicated in the plat of LAND O'LAKES ADDITION.

     Lessor warrants that the leasehold interest granted and conveyed
     hereby is subject only to Lessor's fee, state mineral reservations and
     rights and to the following additional permitted encumbrances:

     1.   The lien of real estate taxes payable in the year 1980 and
          thereafter.

     2.   Levied special assessments.

     3.   Easement for electrical transmission line recorded in Book 1901
          Ramsey County Records, page 520.

     4.   Easement for electrical transmission line recorded as Doc. No.
          470086.

     5.   Easement for electrical transmission line recorded as Doc. No.
          554970.

     6.   Easement for water main recorded as Doc. No. 653951.

     7.   Terms of agreement and consent recorded as Doc. No. 653952.

     8.   Platted sewer, water and drainage easements.

     9.   Easement for electric transmission recorded as Doc. No. 415512.

<PAGE>
                                   Schedule B

                                 Term and Rent

                                 (Ground Lease)

TERM

     1.   The term of this Lease shall commence on the date hereof.

     2.   The term of this Lease shall terminate on the day next preceding the
fiftieth (50th) anniversary of the Primary Term Commencement Date (as defined in
the LOL Sublease); provided, however, that if the LOL Sublessee elects to
extend the term of the LOL Sublease as provided in Paragraph 4 thereof, the
term of this Lease also shall be extended for this same number of years,
without requirement of notice to or from Lessor or Lessee.

RENT

     1.   The Basic Rent from the commencement of the term until the said
Primary Term Commencement Date shall be at the rate of $1.00 per annum payable
in arrears on the said Date.

     2.   The Basic Rent from the Primary Term Commencement Date through the
termination of this Lease shall be at the rate of $72,000 per annum, payable
quarterly in advance on the first day of the quarter in installments of
$18,000, provided that if the said Primary Term Commencement Date shall occur
on a date other than the first day of a calendar quarter, any quarterly
installment of Basic Rent payable with respect to any partial quarter shall be
prorated to the end of such calendar quarter or to the date on which this Lease
terminates, as the case may be. Basic Rent payable with respect to a partial
quarter occurring at the beginning of the term of this Lease shall be paid by
Lessee on the Primary Term Commencement Date.

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