BUSINESS PROPERTY LEASE



1.     THIS LEASE made this 23RD day of AUGUST 2000, by and between



                  QUADRATE DEVELOPMENT, L.L.C.,

                  a Michigan Limited Liability Company

                  15801 23 Mile Road

                  Macomb Township, MI  48042



hereinafter designated as the Landlord, and



                  UFP TECHNOLOGIES, INC.,

                  a Delaware corporation

                  172 East Main Street

                  Georgetown, MA  01833-2107



hereinafter designated as the Tenant.



2.     DESCRIPTION.



       The Landlord, in consideration of the rents to be paid and the covenants

and agreements to be performed by the Tenant, does hereby lease unto the Tenant

the following described premises situated in the Township of Macomb, County of

Macomb, State of Michigan to wit:



       Premises known as 51362 Quadrate Drive, consisting of an industrial

       building situated thereon containing approximately 70,703 square feet and

       land on Lots 6 and 7 and the south 65 feet of Lot 8, Quadrate Corporate

       Park Subdivision depicted on the attached "Exhibit A," subject to

       encumbrances, easements, covenants and restrictions of record, together

       with Landlord's build-out improvements as set forth below,



hereinafter designated the "leased premises."



3.     TERM / RENT.



       For the term of seven (7) years from and after the commencement date

(hereinafter defined) fully to be completed and ended, the Tenant yielding and

paying during the continuance of this Lease unto the Landlord for the rent of

the leased premises for said term, the sum of Three Million One Hundred Forty

Two Thousand Seven Hundred Forty Eight and 28/100 Dollars ($3,142,748.28) in

lawful money of the United States payable in monthly installments in advance,

upon the first (1st) day of each and every month as follows:



            $37,413.67 per month for eighty-four (84) months



The foregoing amounts do not include additional rent for Landlords payments and

costs for taxes, insurance and maintenance. Landlord hereby acknowledges receipt

of the first month's rent, including taxes and insurance pro-rated in accordance

with Paragraphs 5(a) and 7(b) herein, respectively.



The Tenant hereby hires the said premises for the said term as above mentioned

and covenants well and truly to pay, or cause to be paid unto the Landlord at

the dates and times mentioned, the rent above reserved. Tenant also agrees to

pay when due all additional rent and all sums to be paid by Tenant as provided

herein.



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4.     LATE FEE / INTEREST.



       If Tenant fails to pay any rent or additional rent by its due date, and

such failure continues for ten (10) days, Tenant shall pay to Landlord for each

such late payment a late fee of two percent (2%) of the amount of the late

payment. If the Tenant shall default in any payment or expenditure other than

rent required to be paid or expended by the Tenant under the terms hereof, the

Landlord may, at his option make such payment or expenditure on Tenant's account

following written notice to Tenant and Tenant's failure to cure within ten (10)

days after Tenant's receipt of such notice, in which event the amount thereof

shall be due and payable as additional rent to the Landlord by the Tenant on the

next ensuing rent payment due date together with interest at twelve (12%) per

annum from the date of such payment or expenditure by the Landlord, and on

Tenant's default of such payment the Landlord shall have the same remedies as on

default in payment of rent.



5.     TAXES.



       (a) For purposes of this Lease, the "Base Year Taxes" are equal to

$60,097.55 (which is computed at the rate of $ .85 per square foot). In

consideration for Landlord's payment of all of the real property taxes,

including those designated as the "Macomb Intermediate School District Summer

Tax Statement" and the "Winter Taxes" (or any other designations as may be

adopted by the taxing authority from time to time), which are assessed or

charged against the leased premises, Tenant shall pay additional rent in

consecutive monthly installments, each equal to one-twelfth (1/12) of the Base

Year Taxes, on or before the day rent is due commencing on the commencement date

and continuing thereafter for the term of this Lease and any extensions thereof,

together with increases, if any, in accordance with Paragraph 5(b) herein.

Provided, however, Tenant shall be entitled to apply for an abatement of real

property taxes in accordance with the applicable statutes and ordinances, and in

the event such abatement is duly granted by the appropriate governmental

authorities the Base Year Taxes and Tenant's additional rent pursuant to this

Paragraph 5(a) shall be reduced in accordance with such abatement ("Adjusted

Base Year Taxes") and any subsequent increases in real property taxes for

purposes of Paragraph 5(b) shall be based on the Adjusted Base Year Taxes. In no

event shall Tenant's obligation for additional rent for real property taxes be

less than the amount of the Base Year Taxes or Adjusted Base Year Taxes in

accordance with this Paragraph 5(a). Provided, however, the Adjusted Base Years

Taxes and any increases thereof shall be paid by Tenant directly to the

appropriate taxing authorities if so required pursuant to the granting of such

property tax abatement, in which event the Tenant shall pay such taxes on or

before the date that any penalties or interest attaches and shall promptly

provide Landlord with a copy of the paid tax receipts therefor.



       (b) Tenant shall pay to Landlord as additional rent any increase(s) in

the real property taxes over the Base Year Taxes. Tenant shall pay such

increase(s) in consecutive monthly installments, each equal to one-twelfth

(1/12) of such tax increase, on or before the day rent is due commencing within

thirty (30) days after written notice to Tenant from Landlord of the tax

increase and continuing thereafter for the term of this Lease and any extensions

thereof. In the event of such increase, Landlord shall provide Tenant with a

copy of the tax bill(s) from the taxing authority(ies) showing the increase.

Tenant shall have the right to contest such tax increase by initiating

appropriate proceedings in the name of the Landlord, if necessary, provided all

expenses incurred by reason thereof shall be paid by Tenant, and further

provided that such contest shall not operate to suspend or delay Tenant's

obligation to pay real property taxes to Landlord in accordance with this

Section 5.



       (c) If at any time during the term of this Lease the method of taxation

prevailing at the commencement of the lease term shall be altered so that any

new or modified tax, assessment, levy, imposition or charge, or any part

thereof, shall be measured by or based in whole or in part upon the Lease or

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